2024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Shenzhen Properties & Resources Development (Group) Ltd.2024 Annual Report (Announcement No.: 2025-18) March 2025 12024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. 2024 Annual Report Section I Important Notes Table of Contents and Interpretations The Board of Directors Board of Supervisors directors supervisors and senior officers of the Company guarantee the authenticity accuracy and completeness of the contents of the annual report and bear individual and joint legal liabilities for any false records misleading statements or major omissions.Legal Representative Wang Hangjun Chief Finance Officer Cai Lili and Chief Accountant (accounting officer) Cai Kelin declare that they guarantee the authenticity accuracy and completeness of the financial report in the Annual Report.All directors attended the board meeting at which this report was considered.The Company plans not to distribute cash dividends issue bonus shares or increase share capital through capitalization of reserves. 22024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Table of Contents Section I Important Notes Table of Contents and In... 2 Section II Company Profile and Major Financial Ind....6 Section III Management's Discussion and Analysis ... 11 Section IV Corporate Governance .....................44 Section V Environment and Social Responsibilities ...67 Section VI Important Matters ........................71 Section VII Changes in Shares and Shareholders ..... 86 Section VIII Preferred Shares ...................... 95 Section IX Bonds ....................................95 Section X Financial Reports ........................ 96 32024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. List of Documents Available for Inspection I. Financial statements signed and sealed by the Company's Principal Chief Finance Officer and Chief Accountant (accounting officer).II. The original audit report bearing the seal of the accounting firm and the signature and seal of the certified public accountant.III. The originals of all the Company's documents and announcements that have been publicly disclosed during the reporting period. 42024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Interpretations Items Refers to Interpretations The Company the Group SZPRD Refers to Shenzhen Properties & Resources Development (Group) Ltd.Shenzhen Investment Holdings Refers to Shenzhen Investment Holdings Co. Ltd.Huangcheng Real Estate Refers to Shenzhen Huangcheng Real Estate Co. Ltd.Dongguan Company Refers to Dongguan ITC Changsheng Real Estate Development Co. Ltd.Xuzhou Company Refers to SZPRD Xuzhou Dapeng Real Estate Development Co. Ltd.Yangzhou Company Refers to SZPRD Yangzhou Real Estate Development Co. Ltd.Wuhe Urban Renewal Refers to Shenzhen Wuhe Urban Renewal Co. Ltd.Rongyao Real Estate Refers to Shenzhen Rongyao Real Estate Development Co. Ltd.International Trade Center Property Refers to Shenzhen International Trade Center Property Management Co. Ltd.Management ITC Technology Park Refers to Shenzhen ITC Technology Park Service Co. Ltd.Guomaomei Life Service Refers to Shenzhen Guomaomei Life Service Co. Ltd.Shenzhen Property Commercial Refers to Shenzhen Property Commercial Operation Co. Ltd.Operation ITC Catering Refers to Shenzhen ITC Catering Co. Ltd.Supervision Company Refers to Shenzhen Property Engineering and Construction Supervision Co. Ltd.Wuhe Industry Investment and Refers to Shenzhen Wuhe Industry Investment and Development Co. Ltd.Development Shenzhen Property Management Refers to Shenzhen Property Management Co. Ltd.Foreign Trade Property Refers to Shenzhen Foreign Trade Property Management Co. Ltd.Shenfubao Property Refers to Shenzhen Shenfubao Property Development Co. Ltd.Shenfubao Hydropower Refers to Shenzhen Shenfubao Municipal Service Co. Ltd.Security Service Refers to Shenzhen Free Trade Zone Security Service Co. Ltd.Facility Management Community Refers to Shenzhen Facility Management Community Co. Ltd.Shenzhen ITC Chuntian Refers to Shenzhen ITC Chuntian Commercial Management Co. Ltd.RMB RMB'0000 RMB'00000000 Refers to The given figures expressed in the Chinese currency of Renminbi 52024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Section II Company Profile and Major Financial Indicators I. Information about the Company Stock name SZPRDA SZPRD B Stock code 000011、200011 Stock name before the change Not applicable (if any) Stock exchange where the Shenzhen Stock Exchange Company's stocks are listed Chinese name Shenzhen Properties & Resources Development (Group) Ltd.Abbreviation in Chinese SZPRD Foreign name of the ShenZhen Properties & Resources Development(Group) Ltd.Company (if any) Abbreviation of the Company's foreign name (if SZPRD any) Legal representative Wang Hangjun Floor 39 and 42 International Trade Center Building Renmin South Road Luohu District Registered address Shenzhen Guangdong Postal code 518014 Historical changes of the None Company's registered address Floor 16 20 39 and 42 International Trade Center Building Renmin South Road Luohu Office address District Shenzhen Guangdong Postal code 518014 Official website www.szwuye.com.cn E-mail 000011touzizhe@szwuye.com.cn II. Contact person and contact information Secretary of the Board of Directors Securities affairs representative Name Zhang Gejian Ding Minghua Chen Qianying Floor 20 International Trade Center Building Floor 39 International Trade Center Building Contact address Renmin South Road Luohu District Renmin South Road Luohu District Shenzhen Shenzhen City Guangdong Province City Guangdong Province Tel. 0755-82211020 0755-82211020 Fax 0755-82210610、82212043 0755-82210610、82212043 E-mail 000011touzizhe@szwuye.com.cn 000011touzizhe@szwuye.com.cn III. Information disclosure and storage location Stock exchange websites where companies Shenzhen Stock Exchange http://www.szse.cn disclose annual reports Name and website of the media where the Securities Times and Cninfo http://www.cninfo.com.cn Company discloses its annual report 62024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. The Board Office Floor 39 International Trade Center Building Renmin Storage location of annual reports South Road Luohu District Shenzhen Guangdong IV. Registration changes Unified social credit code No change Changes in primary business since the listing of No change the Company (if any) On September 29 2004 Shenzhen SASAC decided to establish Shenzhen Investment Holdings Co. Ltd. by means of merger. The merged parties included the original controlling shareholder Shenzhen Investment Management Corporation and Shenzhen Construction Investment Holdings Co. Ltd. The merged Shenzhen Construction Investment held 323796324 shares of SZPRD and Shenzhen Investment Management held 56582573 shares of SZPRD accounting for 63.82% of the total share capital of SZPRD.Previous changes of controlling shareholder (if On October 19 2018 the Company received a notice from the actual any) controlling shareholder Shenzhen Investment Holdings that Shenzhen Investment Holdings had obtained the Confirmation of Securities Transfer Registration issued by China Securities Depository and Clearing Co. Ltd.Shenzhen Branch. By then the transfer of Shenzhen Investment Holdings' equity had been completed and the controlling shareholder of the Company had been changed to Shenzhen Investment Holdings.There was no change in the controlling shareholder of the Company during the reporting period.V. Other relevant information Accounting firm engaged by the Company Name Grant Thornton Zhitong Certified Public Accountants LLP Floor 5 Scitech Plaza No. 22 Jianguomenwai Street Chaoyang District Office address Beijing Signing accountants ZHAO Juanjuan ZHOU Yilan Sponsor engaged by the Company to perform continuous supervision during the reporting period □Applicable □Not applicable Financial consultant engaged by the Company to perform continuous supervision during the reporting period □Applicable □Not applicable VI. Main accounting data and financial indicators Whether the Company needs to retroactively adjust or restate the accounting data of previous years □Yes □No Increase/decrease this Year 2024 Year 2023 year compared with Year 2022 last year Operating revenue 2734158884.052965117025.04-7.79%3708669046.85 (RMB) Net profit attributable -1114764922.17 464014492.11 -340.24% 537291574.13 to the shareholders of 72024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. the listed company (RMB) Net profit attributable to shareholders of listed companies after -1328523983.50-172360115.90-670.78%390067488.08 deducting non- recurring profit or loss (RMB) Net cash flows from operating activities -1423998174.52 -264092984.33 -439.20% 105233103.86 (RMB) Basic earnings per -1.87050.7786-340.24%0.9015 share (RMB/share) Diluted earnings per -1.87050.7786-340.24%0.9015 share (RMB/share) Weighted average rate -28.00%10.26%-38.26%12.36% of return on net assets Increase/decrease at the end of this year As at the end of 2024 As at the end of 2023 As at the end of 2022 compared with the end of last year Total assets (RMB) 15293205498.30 16988062068.09 -9.98% 15824788371.56 Net assets attributable to shareholders of the 3361683048.50 4661810328.75 -27.89% 4414259168.34 listed company (RMB) The net profit of the Company in the last three fiscal years before and after deducting non-recurring profit or loss is negative and the audit report of the latest year shows that the going-concern ability of the Company is uncertain □Yes□No The lower of net profit before and after deducting non-recurring profit or loss is negative □Yes □No Item Year 2024 Year 2023 Remark Deduct the business revenues that are not related to the main business which are mainly the temporary resettlement compensation revenues from the shed Operating revenue (RMB) 2734158884.05 2965117025.04 renovation project on Chuanbu Street the demolition compensation revenues of Fengherili and the consulting service revenues.Deduct the business revenues that are not related to the main business which are mainly the temporary Operating revenue deduction resettlement compensation revenues from the shed 63518310.9317825350.04 amount (RMB) renovation project on Chuanbu Street the demolition compensation revenues of Fengherili and the consulting service revenues.Deduct the business revenues that are not related to the main business which are mainly the temporary Operating revenue after resettlement compensation revenues from the shed 2670640573.122947291675.00 deduction (RMB) renovation project on Chuanbu Street the demolition compensation revenues of Fengherili and the consulting service revenues. 82024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. VII.Differences between accounting data under domestic and foreign accounting standards 1. Differences in net profit and net assets in the financial reports disclosed in accordance with the international accounting standards and the Chinese accounting standards □Applicable □Not applicable During the reporting period of the Company there was no difference in net profits and net assets in financial reports disclosed in accordance with international accounting standards and Chinese accounting standards 2. Differences in net profit and net assets in financial reports disclosed in accordance with both the international accounting standards and Chinese accounting standards □Applicable □Not applicable During the reporting period of the Company there was no difference in net profits and net assets in financial reports disclosed in accordance with the international accounting standards and Chinese accounting standards VIII. Main financial indicators by quarter Unit: RMB Q1 Q2 Q3 Q4 Operating revenue 406582462.31 449445982.94 461778206.82 1416352231.98 Net profit attributable to shareholders of the 463582.22 8748875.59 -5631440.84 -1118345939.14 listed company Net profit attributable to shareholders of listed companies after 222779.46 9516248.51 -2115855.29 -1336147156.18 deducting non- recurring profit or loss Net cash flows from -647860412.07-88966689.37-1016120654.50328949581.42 operating activities Whether the above financial indicators or their aggregate are significantly different from the financial indicators related to the Company's disclosed quarterly and semi-annual reports □Yes □No IX. Non-recurring profit or loss items and amounts □Applicable □Not applicable Unit: RMB Item Amount in 2024 Amount in 2023 Amount in 2022 Notes Mainly due to the Profit or loss on disposal of non-current receipt of assets (including write-off of provision for 44657387.86 702127250.52 175644543.02 compensation for the asset impairment) investment properties Government grants included in the current profit or loss (except for those that are 1099426.89 7802977.21 10633227.34 closely related to the Company's normal business operations comply with national 92024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. policies and regulations are enjoyed according to determined standards and have a sustained impact on the Company's profit or loss) Profit or loss from changes in fair value of financial assets and liabilities held by non- financial enterprises and profit or loss from the disposal of financial assets and financial 1300.91 liabilities except for effective hedging operations related to the Company's normal business operations Fund possession costs included in the current profit or loss and collected from 132289.35 non-financial enterprises Current net profit or loss of the subsidiaries from business combination under common 9596148.16 control from the beginning of the period to the combination date Profit or loss from debt restructuring -54026.93 Profit or loss on contingencies irrelevant to 70578.79 normal business operation of the Company Non-operating revenue and expenses other -7288158.92-2773489.322448235.99 than the above-mentioned items Mainly the income from investments in Other items of profit or loss subject to the 184906343.25 5684844.32 277896.27 joint ventures definition of non-recurring profit or loss determined according to the income method Less: income tax effects 9424345.24 76182752.47 51525180.31 Affected amount of minority interests 137565.58284222.2554953.47 (after tax) Total 213759061.33 636374608.01 147224086.05 -- Specific circumstances of other profit or loss items that meet the definition of non-recurring profit or loss: □Applicable □Not applicable Mainly the compensation received by the joint ventures for the expropriation of houses and the investment income is recognized according to the income method. This compensation payment is not sustainable.Notes on the definition of the non-recurring profit or loss items listed in the "Interpretive Announcement No. 1 on Information Disclosure of Companies Issuing Securities to the Public - Non-recurring Profit or Loss" as recurring profit or loss items □Applicable □Not applicable The Company had no circumstances of definition of the non-recurring profit or loss items listed in the "Interpretive Announcement No. 1 on Information Disclosure of Companies Issuing Securities to the Public - Non-recurring Profit or Loss" as recurring profit or loss items. 102024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Section III Management's Discussion and Analysis I. Industry status during the reporting period The Company shall comply with the disclosure requirements for the real estate industry as set out in the Guidelines for Self- Regulation of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure (I) Macroeconomic situation and industry development status In 2024 the global economy gradually recovered amid multiple challenges and the conflict between Russia and Ukraine tensions in the Middle East and uncertainties in China-US relations continued to affect the global economy. China's economy is also facing new opportunities and challenges. The economic growth rate has slowed down but it still remains within a reasonable range. The government continued to implement a proactive fiscal policy and a prudent monetary policy and increased support for scientific and technological innovation green economy and small and medium-sized enterprises. At the same time the government promoted supply-side structural reform optimize industrial structure and enhanced economic resilience. The real estate market continues to be in a period of adjustment and the government continues to adhere to the positioning of "no speculation in housing" and optimize the real estate regulation and control policy. Local governments have implemented policies based on city conditions relaxed restrictions on purchase and loan restrictions reduced the down payment ratio and mortgage interest rates and supported rigid and improved housing demand. A series of stimulus policies continue to support the market aiming to stabilize the real estate market and prevent large fluctuations in the market.(II) Industrial policy environment 2024 is an important year for "major changes in the supply and demand relationship of the industry". In many important meetings throughout the year corresponding deployment and guidance were made for the real estate industry and pointed out the development direction for the industry. In the first half of 2024 a series of optimizations and adjustments were made to the current system including the relaxation of purchase restrictions in first-tier cities the reduction of down payment interest rates to a new low the further reduction of stock mortgage interest rates the cancellation of general housing standards the purchase and storage of commercial housing and the comprehensive restart of urban village transformation aiming to standardize the market order and improve the new model of development of the real estate industry. In the second half of the year the policy release intensity and frequency increased and the policy turned to "lifting and using". On September 26 the Politburo of the CPC Central Committee held a meeting. In terms of real estate the meeting emphasized the need to promote the real estate market to stop falling and stabilize strictly control the increment optimize the stock and improve the quality of commercial housings increase lending to "white list" projects and support the revitalization of idle land. Since then the real estate market has shown positive changes the house price index has gradually stabilized and market confidence has been boosted.Supply-side financial support guaranteed delivery and financial policy supported land and housing destocking. Supply-side financial support continued to increase and upgrade. The policy was committed to helping the market destock and gradually restore the normal operation ability of enterprises. Efforts were made in stabilizing both the market and the main body and various financial policy tools were used to support the implementation of supporting policies mainly focusing on promoting financing coordination mechanism expanding the "white list" of housing enterprises and guaranteeing stock acquisition through housing loans and special bonds.Demand-side policies have been continuously relaxed and stimulated through the "optimal combination" aiming to boost property purchase expectations and enthusiasm. The Ministry of Housing and Urban-Rural Development together with the Ministry of Finance the Ministry of Natural Resources the People's Bank of China the National Financial Regulatory Administration and other departments introduced the "four cancellations four reductions and two increases" measures to support residents' purchase of housings. The four cancellations mainly include cancellation of restrictions on purchase cancellation of restrictions on sales cancellation of price caps cancellation of the distinction between ordinary and non-ordinary residential 112024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. standards; the four reductions include the reduction of interest rates on housing provident fund loans reduction of the down payment ratio for housing loans reduction of interest rates on existing loans and reduction of the tax burden of "sell old buy new" house replacements; among the two increases one is to increase 1 million units of urban village and old housing renovations through monetary compensation and the other is to increase the credit scale of the projects in the "white list" to RMB 4 trillion by the end of the year aiming to promote the property market to halt falling and spur a stable recovery through the "optimal combination".(III) Regional market landscape From the perspective of the regional market in 2024 Shenzhen's economy remained resilient. The property market policy centered on "stabilizing land prices stabilizing house prices stabilizing expectations supporting rigid and improved housing demand and promoting the stable development of the real estate market" and introduced a number of loose and favorable policies. The scale of primary residential supply in Shenzhen has shrunk due to the slowdown in the pace of land supply. On September 29 four departments including Shenzhen Habitat Construction & Conservation jointly issued a document proposing measures such as relaxing purchase restrictions lowering down payments removing price caps and sales restrictions and adjusting value-added tax exemption term from 5 years to 2 years aiming to accelerate the establishment of a new development model for the real estate sector and promote the real estate market to halt falling and spur a stable recovery. The launch of "929 New Policies" has become the key to promoting the market. In view of the increase in market activity property developers timely accelerated their project launches with multiple core indicators achieving stabilization and improvement.(VI) Present situation and tasks At present the internal and external environment presents a complex and challenging situation. The Company's projects under construction are planned to be sold in the market one after another and the sales collection is the annual central work which is directly related to the healthy operation of the enterprise's capital chain. In this context accelerating the return of funds strictly controlling the scale of expenditure ensuring the safety and stability of cash flows and preventing liquidity risk have become the core tasks to achieve the Company's stable operation. At the same time the Company needs to further promote the high-quality development of the property management segment accelerate the construction of a modern professional and intelligent service system and enhance the market competitiveness. In the field of commercial operation it is necessary to take a multi-pronged approach to promote transformation and upgrading as a whole and maximize the value of commercial assets by innovating business models optimizing business layout and improving operational efficiency. In the face of uncertain market situation the Company shall take the initiative to hedge external risks through deterministic work maintain strategic concentration ensure the full completion of annual tasks and objectives and lay a solid foundation for sustainable development.(V) Position in the industry SZPRD accompanied the reform and opening up of Shenzhen. It has been deeply involved in real estate and property management for more than 40 years. Its industry position and brand influence have been improving and it has won many honors and awards over the years. During the reporting period the Company ranked 271st in the list of "Top 500 Shenzhen Enterprises in 2024" and won the title of "2023-2024 High-quality Development Star Enterprise in Luohu District" granted by the People's Government of Luohu District. Its property management segment ranked 27th in the national comprehensive strength up 6 places from 2023 and 9th in the comprehensive strength of state-owned property service. It has been consecutively awarded the "2024 China's Top 100 Property Service Enterprise in Comprehensive Strength" "2024 China Property FM Leading Enterprise" "2024 China's Top 20 Enterprises in Park Property Service" "2024 China Industrial Park Property Service Leading Enterprise" "2024 China Office Building Property Service Leading Enterprise" "2024 South China's Top 30 Brand Enterprises in Property Service" and other awards; in subdivisions it has successively won the honor of "Shenzhen Bay Science and Technology Ecological Park" service capacity benchmarking project "Shenzhen Bay Innovation and Technology Center" and "Shenzhen International Trade Commercial Building" management excellence benchmarking project. Its real estate segment won the awards of "2024 Integrity Enterprise of Shenzhen Real Estate Development Industry" "2024 Development Power Enterprise of Shenzhen Real Estate Development Industry" among others. Shenzhen International Trade Center Building is listed in the first batch of historical 122024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. buildings in Shenzhen announced by the Shenzhen Municipal People's Government and the historical exhibition of Shenzhen International Trade Center is included in the list of important historical sites of reform and opening up which demonstrates the comprehensive strength of the Company and reflects the high recognition of the Company's comprehensive strength by the industry customers and government departments.During the reporting period in the face of changes in the situation of the real estate industry the Company locked in its goals and sprinted throughout the year to generally complete various annual operating indicators. The Company proactively adapted to changes and implemented flexible strategies to tackle market challenges. The Company took multiple measures to further advance market-oriented transformation of commercial operations. The Company took the initiative in production safety and proper handling of petition ensuring the steady development of the Group's business.II. Main business engaged in by the Company during the reporting period The Company shall comply with the disclosure requirements for the real estate industry as set out in the Guidelines for Self- Regulation of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure (I) Overview of main business SZPRD was established in 1982. It was formerly known as Luohu Engineering Construction Headquarters. In August 1985 it was renamed Shenzhen Properties Development Corporation. In 1988 it was identified by Shenzhen government as the second batch of state-owned enterprises to pilot the joint-stock reform. In 1990 it completed the joint-stock reform and was officially renamed Shenzhen Properties & Resources Development (Group) Ltd. In March 1992 the Company's stock (SZPRD A/SZPRD B 000011/200011) was officially listed on the Shenzhen Stock Exchange. SZPRD as Party A of the construction of the International Trade Center Building played a leading role in orchestrating the entire process of its construction and operation. It is a key creator and organizer of the world-renowned "Shenzhen Speed". The International Trade Center Building is also fortunate to have become an important historic site of DENG Xiaoping's world- renowned "south tour speeches". The Company was founded as the International Trade Center Building was established and thrived through China's reform and opening-up growing alongside the miraculous city of Shenzhen. It has become a steadfast practitioner of the "pioneer cattle" spirit in the new era dedicated to innovative services and overcoming challenges. The employees of SZPRD uphold the spirit of "daring to be the first and striving for strength through reform and innovation" focus on the functional positioning of state-owned assets of "serving the overall situation serving the city serving the industry and serving the people's livelihood" stick to the original aspiration forge ahead with perseverance take the lead and bravely act as the vanguard. In recent years both the development speed and quality have been greatly improved. The Company has now developed from a project company when it first built the International Trade Center Building to a large-scale comprehensive industrial group.In the new era and new stage the Company assesses the situation and acts accordingly striving to move forward towards the goal of becoming "China's leading smart operator of industrial and urban space." 1. Industrial and urban space development The Company's space development sector is committed to the development of different business formats such as residential buildings high-end apartments office buildings and industrial parks. It has brand projects such as ITC Building Huanggang Port Tian'an International Building Qianhai Port and Jinling Holiday. Based on the existing real estate development business the Company will promote the stock optimization and increment development and construction simultaneously. Taking the subordinate companies such as Huangcheng Real Estate Rongyao Real Estate and Wuhe Urban Renewal as the development and urban renewal entities the Company will rely on its listing platform to increase capital operation and rationally allocate urban space development sectors. During the reporting period the Group steadily promoted the development of local and off-site projects in Shenzhen accelerated the sales of project inventory and improved the speed of capital recovery. On this basis it focused on the development and construction of industry-city complexes and accelerated the creation of an integrated and symbiotic development model of urban boutique housing and high-end industrial space. 2. Property management service 132024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. The Company's property management segment is based on International Trade Center Property Management. As one of the first batch of national first-class property management qualified enterprises International Trade Center Property Management has after more than 30 years of development become a domestic first-class property service provider with diversified business capabilities and technological strength. It has been rated as "Top 100 property management Enterprises in China" and "Excellent Enterprise for China Industrial Park Property Management" for many years in a row. The projects under its management are spread all over the country and its business radiates to various regions of the country including South China Southwest China East China North China as well as the Vietnam-Vietnam Cooperation Zone. The existing business has covered various formats such as industrial parks cultural tourism scenic spots government agencies rail transit housing hospitals schools hotels etc. and is being arranged to enter the field of grassroots social governance cooperate with the government to create a safe harmonious civilized and orderly urban environment and basically form a good pattern of multi-format comprehensive development. International Trade Center Property Management has more than 20 subsidiaries leveraging its headquarters' functional departments as a platform to actively build three major centers namely "market empowerment and supervision". It has established business centers and profit centers based on the three major modules featuring professional business companies professional companies and regional companies aiming to achieve a sustainable and effective "1+1 > 2" coordinated development new pattern. 3. Industrial ecological operation The industrial ecological operation sector makes full use of the Company's development foundation and entire industrial chain development advantages in the three basic industries of real estate development property management and leasing focuses on the two strategic starting points of "value-added operation of stock assets" and "light asset operation output" strengthens internal and external strategic cooperation is committed to building a closed-loop of the whole industry ecology covering project development services park operation services supporting leasing operations etc. continuously optimizes the space service and leasing ecosystem in the park and has initially possessed the whole chain capabilities and experience of various assets from the early planning project clearance construction control investment promotion operation on-site control etc. forming a unique and mature business development model. The Company is accelerating the inventory and evaluation of existing properties and strengthening management. In the future it will gradually expand the scope of its leasing business and enhance property leasing development capabilities. On this basis it will gradually shift the focus of its industrial ecological operations to science and technology parks providing supporting services for the entire value chain including industrial ecological introduction project development services and park operation services to shape the role of a "space service provider" with science and technology parks as the core. 4. Other business During the reporting period the Company's business also includes catering business and project supervision business. The catering business is operated by Shenzhen ITC Catering Co. Ltd. ITC Catering was established in 1986 and became famous at home and abroad as the place where the "Southern Tour Speech" was delivered in 1992. Since its opening it has received more than 600 Chinese and foreign dignitaries celebrities and countless Chinese and foreign guests and its reputation has spread far and wide both at home and abroad. The engineering supervision business is operated by a supervision company which has Class A supervision qualification for housing construction projects from the Ministry of Construction. Its predecessor was the SZPRD Management Department. It was directly involved in the construction and management of the Shenzhen International Trade Building and witnessed the entire process of creating the " Shenzhen Speed". It has long been mainly serving the group's development projects.(II) Operation in 2024 In 2024 in the face of internal and external challenges the management team of the Company has always adhered to the overall leadership of the Party maintained strategic focus strictly implemented the decisions and deployments of the Board and the Party Committee made every effort with firm confidence closely focused on the key tasks proposed at the beginning of the year and adopted many measures to actively respond to market changes. The real estate company flexibly adjusted its sales strategy according to the situation and accurately seized the favorable opportunity to start project pre-sale and late-market referral laying a 142024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. foundation for achieving annual business indicators; the property management company improved the overall profitability and core competitiveness of the enterprise through organizational restructuring system process reengineering talent optimization and allocation etc.; with the goal of accelerating transformation and upgrading the Shenzhen Property Commercial Operation continuously improved its operation and management mode and maintained a stable and healthy development trend in each business segment. During the reporting period the Group's total assets were about RMB 15.293 billion and the annual operating revenue was about RMB 2.73 billion and the annual main economic indicators were generally completed.First for the industry-city space development sector we've taken the initiative to adapt and flexibly implement policies to face market challenges. The real estate business achieved an operating revenue of RMB 1.003 billion throughout the year accounting for 36.71% of the total revenue. During the reporting period the four major real estate projects Jinling Project Guangming Yutang Shangfu Project Lake City Project and Humen Binhai Harbour Palace Project were launched simultaneously.Marketing management actively responded to market changes prudently analyzed and evaluated market conditions closely monitored dynamics in key regional markets and seized market opportunities to accelerate sales and inventory clearance. The Company has consistently strengthened the coordination of milestone targets and resource allocation guarantees. Adhering to a market-oriented management philosophy all business lines including design procurement and engineering within the Group have maintained high-level collaboration enhanced refined control to adapt to market changes and implemented comprehensive coordination and guidance for project development. Proactive planning was conducted for critical tasks such as project design schemes tendering and procurement target cost determination and on-site construction ensuring efficient and orderly development of all ongoing projects. A refined control system covering the entire real estate project development process has now taken shape. Substantial progress has also been made in projects such as Shenyang Digital Intelligent City Haikou Hongqi Town Fuyuan Industrial Zone Huiyang Danshui and others.Second the external expansion of the property management segment and internal coordination go hand in hand and the market expansion continues to be strengthened. The property management business reported an operating revenue of RMB1.594bn accounting for 58.32% of the total revenue higher than in 2023. During the reporting period the Company deepened the coordinated development and internal integration of the system developed value-added services such as tourism sales promotion and community-to-home services and achieved breakthroughs in new formats of culture and sports and value- added service boundaries. The area under management reached a record high exceeding 45 million m2 for the first time. Further enrich the business formats of office buildings industrial parks schools hospitals farmers' markets and military regions and provide strong support to building a municipal-level benchmark property management platform. At the same time the remodeling of organizational structure and the establishment of cost management system were initiated to further consolidate the position of the only property management platform in the system. Shenzhen International Trade Center Property Management has consecutively won the titles of "2024 China Property Service Enterprise Comprehensive Strength Top 100" "2024 China Property FM Facility Management Leading Enterprise" "2024 China Park Property Service TOP20 Enterprise" "2024 China Industrial Park Property Service Leading Enterprise" and other awards with its brand value and reputation continuously improving.Third industrial ecological operation and other sectors shall take multiple measures simultaneously to cultivate core operation capabilities. The leasing and operation business reported an operating revenue of RMB135mn accounting for 4.97% of the total revenue. In recent years the Company has taken multiple measures to accelerate transformation and upgrading adopted measures such as exploring and establishing an incremental sharing mechanism and increasing the intensity of project expansion promoted the transformation of the current simple leasing business to a commercial operation model and helped realize the development and growth of the industrial ecological operation sector. During the reporting period the renovation of ITC Shopping Mall and the inauguration ceremony of Shenzhen ITC Chuntian unveiled. By operating ITC Shopping Mall in a light-asset management and charter mode the Company took firm steps in creating the Group's independent commercial brand and exploring market-oriented commercial operations. Through measures such as improving asset quality and efficiency exploring and establishing an incremental sharing mechanism the industrial operation sector cultivated core operation capabilities in multiple paths adheres to improving quality and efficiency as the core and accelerates the transformation upgrading and revitalization of 152024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. stock assets. In terms of industrial investment attraction the industrial alliance system was expanded during the year and project investment attraction was actively promoted. (3) Work Safety of the Company in 2024 In 2024 SZPRD adhered to the bottom line of safety production coordinated development and safety actively implemented the deployment and requirements of government departments at all levels on safety production work comprehensively consolidated the main responsibility of the enterprise and carried out a three-year campaign to tackle the root causes of work safety. The Group's work safety situation was stable and controllable throughout the year and no work safety liability accidents with serious injuries or above or major economic losses occurred and the work safety objectives for 2024 were successfully completed.New land reserve projects Equity Total land Land parcel Land Capacity Land considerati Land area price or project Location planning 2 building acquisition Equity ratio on(m ) (RMB100 name purpose area (m2) method (RMB100 00) 00) None Cumulative land reserve Total construction area Remaining developable floor Project/Area name Total floor area (10000 m2) (10000 m2) area (10000 m2) Land in Huiyang Danshui 1.77 4.25 4.25 Land in Hongqi Town 15.80-- Haikou Total 17.57 4.25 4.25 Development of main projects Comp Plan Total leted Estimat ned Cumu accumu Eq area ed total Develo Schedule Lan capa lative lated Projec uit Commen of the investm City/R Proje Locati pment of d city compl investm t y cement curre ent egion ct on progres completio area buil eted ent format rati time 2 nt amounts n (m ) ding area amount o perio 2 (RMB1area (m ) (RMB1 2 d 0000)(m ) 2 0000)(m ) Fuhu Compl Futian Shenz i Reside 100 etion 427 334 4352 Distri 2018.12 100% 0 91133 77396 hen Huay nce % of 4 30 2 ct uan works Main body capped and Harb Hume Under electrome Dongg our Reside 100 516 113 32175 26657 n 2022.03 constru chanical 0 0 uan Palac nce % 87 713 9 6 Town ction and e decoratio n works in progress.Shenz Yuta Guan Reside 100 2022.03 Compl 100% 149 819 1248 1248 26586 21605 162024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. hen ng gming nce % etion 01 60 32 32 8 6 Shan area of gfu works Phase I earthwork and pile foundatio n related Reside constructi ntial on are in Longh industr Under progress; Shenz Lake ua ial 69 682 433 84000 57411 2020.10 constru phase II 0 0 hen City Distri comm % 98 640 0 9 ction main ct ercial bodies on apartm Plot #02 ents Plot #03 Plot #04 and Plot #06 capped.Phase I Plot D basically Shen complete yang Reside d; and Pings Digit ntial Under Plot C Yangz han 67 231 370 37747 al industr 2023.03 constru superstru 0 0 94948 hou Towns % 612 258 9 Intell ial ction cture hip igent office main City body constructi on in progress.Sales of main projects The Amount Settle Settleme Cumul curre of pre- Cumul ment nt ative nt sale Item Equ Capaci ative area in amountSalabl pre- perio (sale) in City/R Locati ity ty settlem the in the Project egion on Business e area sale d pre- the rati buildin 2 ent curren currentformats (m ) (sales) sale currento g area area t period area (sales period (m22 ) period (RMB10(m ) ) area (RMB10 (m2) 000) (m2) 000) Residentia l Longh industrial Shenzh Lake 69 43364 30499 10496 1049 34585.0 ua estatedor 0 0 0 en City % 0 7.53 .91 6.91 3 District mitory commerci al Shenzh Golden Futian Residentia 100 13380 12523 12437 3245. 22254.2 12553 2406. 15555.0 en -collar District l single % 0.6 1.07 0.8 26 2 3.73 29 8 Holida apartment 172024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. y s Apart commerci ments al Residentia l (including talent Yutang Guang housing) Shenzh 100 78355 30481 29250. 2925 75357.3 Shangf ming commerci 89143 89.83 246.94 en % .93 .88 12 0.12 1 u area al and communit y vegetable markets Residentia l Songh commerci Dongg u Dalang al 100 14713 15791 15005 15004 uan 300 221.13 288 202.81 Langy Town kindergart % 9.96 1.56 8.71 5.84 City uan en parking space Shenya Residentia ng l office Hanjia Yangzh Digital commerci 67 37055 50281 200.8 ng 200.82 138.83 0 0 0 ou City Intellig al garage % 6.76 3.45 2 District ent parking City space Residentia Lakesi l shops Hanjia Yangzh de apartment 100 93077 12199 11557 - ng -210.18 115394 88.53 29.71 ou City Royal s garages % .03 2.94 4.71 110.6 District View parking spaces Leasing of main projects Accumulated Rentable area Average Project Location Project format Equity ratio 2 leased area(m ) 2 occupancy rate(m ) Long-term Xiyu Longyuan Shenzhen rental 100.00% 3967.05 3967.05 100.00% Store apartments Long-term Xiyu Xinhu Store Shenzhen rental 100.00% 1589.6 1093.8 68.81% apartments Commercial Fumin Complex Shenzhen 100.00% 6450.19 5742.35 89.03% and apartments Block A Man Kam Shenzhen Office building 75.00% 5904.3 5614.3 95.10% To Port Building Overseas Friendship Commercial Shenzhen 75.00% 6635.08 6375.08 96.08% Building office building Anhua Building Shenzhen Office 75.00% 1414 1414 100.00% 182024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Pengfu Building Shenzhen Office 75.00% 6494 6494 100.00% Jinfu Building Shenzhen Commercial 75.00% 1652.7 1652.7 100.00% Jinfu Building Shenzhen Commercial 100.00% 567.56 567.56 100.00% Residential/Co Fuxing Garden Shenzhen 75.00% 5787.22 5787.22 100.00% mmercial Fuxing Garden Shenzhen Commercial 100.00% 1417.15 1417.15 100.00% Dongguan Tangxia Dongguan Powerhouse 75.00% 22462.08 22462.08 100.00% factory City Commercial Pacific Trade Shenzhen area/Office 75.00% 3149.03 2094.26 66.50% Building building Commercial Pacific Trade Shenzhen area/Office 15.00% 14888.76 10958.61 73.60% Building building Commercial Kangti Building Shenzhen area/Office 75.00% 2095.87 2095.87 100.00% building Commercial Kangti Building Shenzhen area/Office 15.00% 1146.81 1146.81 100.00% building Commercial Lvhua building Shenzhen 75.00% 7106.95 6901.02 97.10% and residential Shops on the first floor of Building Shenzhen Shops 75.00% 1000.34 1000.34 100.00% 48 Lianhua North Village Haonianhua Apartments and Shenzhen 100.00% 1802.61 1802.61 100.00% Building commercial Haonianhua Apartments and Shenzhen 75.00% 2277.9 2277.9 100.00% Building commercial Shangmeilin Shenzhen Residence 100.00% 1192.88 984.15 82.52% Kaifeng Garden Fuyuan Industrial Shenzhen Powerhouse 75.00% 47131.4 43845.2 93.03% Zone Tonglu Industrial Shenzhen Powerhouse 100.00% 74845.08 69911.23 93.41% Zone Jiangling Industrial Shenzhen Powerhouse 75.00% 10396.64 10396.64 100.00% Zone Commercial Area 21 Shenzhen area/Office 75.00% 9518.7 9438.7 99.16% building Baoli Community Shenzhen Residence 75.00% 9093.07 7846.46 86.29% Songgang plant Shenzhen Powerhouse 75.00% 5700 5700 100.00% Bulong plant Shenzhen Powerhouse 75.00% 7471.36 7471.36 100.00% Henggang plant Shenzhen Powerhouse 75.00% 3821 3821 100.00% (new) Huanggang Shenzhen Office 75.00% 4599.72 4508.09 98.00% Highway Building Yuetong Complex Shenzhen Office 75.00% 3044 3044 100.00% Department Store Shenzhen Office 33.00% 12751.15 12751.15 100.00% Plaza 192024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Southern Securities Shenzhen Office 33.00% 8809.8 6590.22 74.81% Building Tax-free single Shenzhen Apartment 33.00% 3440.12 3440.12 100.00% apartments Xiangfu Building Shenzhen Commercial 33.00% 3109.4 3109.4 100.00% Level-I land development □Applicable □Not applicable Financing approach Financing Term structure Financing cost balance at the Financing range/average end of the approach financing cost period Within 1 year 1-2 years 2-3 years Over 3 years (RMB10000) (RMB10000) Bank loans 543772.77 3%-3.5% 68206.31 376290.48 65471.52 33804.46 Non-bank loans 39960.00 4%-6% 40.00 40.00 40.00 39840.00 Total 583732.77 3%-4% 68246.31 376330.48 65511.52 73644.46 Development strategy and business plan for the next year In 2025 due to the uncertainties of the international situation and other factors the domestic economy is expected to remain under pressure. The central government proposes to adhere to the general tone of seeking progress while maintaining stability completely accurately and comprehensively implement the new development concept implement more proactive macro policies expand domestic demand stabilize the property market and stock market stabilize expectations stimulate vitality promote the continuous recovery of the economy and continue to push the real estate market to stabilize. SZPRD will continue to actively connect with the major strategic orientation of the state-owned asset system and firmly control the core links of the value management of stock assets and the industrial ecological operation service. It will focus on the development of four major businesses including industrial-city space development property management service industrial ecological operation and main business ecological investment deeply study and follow the new trends and new characteristics of the development of the real estate industry and strive to seize the opportunity in the adjustment stage of the real estate industry. It will also focus on stable operation seek sustainable development together create a market-oriented commercial property platform and solidly promote the high-quality development of the enterprise with certainty. In the coming year while focusing on the development and sales of existing projects the Group will continue to follow up and seek incremental resources to lay a foundation for development during the "15th Five-Year Plan" period. In terms of project development the Company will steadily promote the development and construction of Yutang Shangfu Project Lake City Project Harbour Palace Garden Project and Shenyang Digital Intelligent City Project create quality benchmark demonstration projects continue to improve development capabilities strengthen quality control deepen lean management improve product comprehensive competitiveness and actively create "good houses"; in terms of sales and destocking we will keep an eye on the optimization of industry regulatory policies seize the market window period closely combine with the marketing nodes of each project balance the volume and price relationship strictly control the marketing expenses and fully promote the sales of Yutang Shangfu Project Lake City Project Harbour Palace Project and Shenyang Digital Intelligent City Project and strive to complete the annual sales target of each project; in terms of land reserve we will activate the stock resources deepen the value of assets grasp the important window period of the real estate market focus on the economic development potential areas such as the Guangdong-Hong Kong-Macao Greater Bay Area and the Yangtze River Delta actively promote the implementation of projects through market-oriented urban renewal bidding auction and listing industrial land application project cooperation and other means and prudently choose opportunities to try to carry out capital operation to accelerate the pace of market mergers and acquisitions so as to obtain more resources for the sustainable development of the Company.The above business plans and business objectives do not represent the listed company's profit forecast for 2025. Whether they can be realized depends on various factors such as changes in market conditions and the efforts of the business team and there are great uncertainties. Investors should pay special attention to them.Guarantee to buyers of commercial housing for bank mortgage □Applicable □Not applicable 202024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. 1) As a real estate developer the Company has historically provided mortgage guarantees for buyers of commercial housing in accordance with real estate development practices. As of December 31 2024 the outstanding guarantee balance was RMB 1135580.83 and such guarantee will be released upon full repayment of the related mortgage. 2) As a real estate developer the Company has historically provided mortgage guarantees for buyers of commercial housing in accordance with real estate development practices. As of December 31 2024 the outstanding guarantee balance was RMB 387671636.94 and such guarantee will be released upon full repayment of the related mortgage. Joint investment by the DSSM and the listed company (applicable to the DSSM of the listed company as the investor) □Applicable □Not applicable Matching of actual Type of Investment Proportion of Accumulated investment Peak ratio of Project investment amount investment income Exit status amount and project funds entity (RMB) amount (RMB) amount of income distribution Mandatory co- Guanlan investment Subdistrict personnel Not2647.00 66.18% Not Bangling (including None None applicable applicable District directors and urban senior renewal officers) project1 Voluntary co- Not investment 1353.00 33.82% Not None None applicable applicablepersonnel Note: 1 This project is in progress and the peak project funds cumulative income and exit status are not applicable. For details please refer to the relevant announcement disclosed by the Company on Cninfo on November 9 2019.III. Analysis of core competitiveness Advantages of brand and cultural accumulation: As a state-owned enterprise under the Shenzhen Municipal Government SZPRD has gone through 40 years of magnificent and pioneering development and has gradually formed a diversified development pattern with real estate development as its main industry involving urban renewal property management asset operation industrial investment etc. The brand value and comprehensive strength of "Shenzhen Property" that carries the spirit of reform and opening up of the International Trade Center Building have been highly recognized by the market. The company was born because of the International Trade Center Building prospered because of reform and opening up and coexists and grows with the miracle city of Shenzhen. The combination of the corporate culture of "daring to be the first reforming and strengthening" and the "pioneer" spirit of overcoming difficulties has become an action guide to drive SZPRD's splendid leap from "Shenzhen Speed" to "Shenzhen Quality".Market-oriented advantages: SZPRD has been following a market-oriented pace of changing its strategies every year and undergoing major changes every three years. It has continuously innovated its systems and mechanisms continued to deepen internal reforms and actively carried out market-oriented operations in line with industry benchmarks which has significantly stimulated the vitality and momentum for the Group's high-quality development. In recent years Lake City Project pioneered the cooperation between state-owned enterprises and private enterprises to develop urban renewal projects marking the official launch of the first fully market-oriented urban renewal project in the history of the Group and taking the lead in implementing the urban renewal project co-investment system in the municipal state-owned assets system; property management segment the Company 212024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. actively expanded projects outside the province and strengthened its market expansion efforts effectively enhancing the 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 co-investment and long-term incentives to allocate resources select talents assess rewards and punishments in a market-oriented manner.Advantages of the entire industrial chain: Over the years SZPRD formed advantages in the entire industrial chain including project acquisition development and construction investment promotion and sales leasing management and property management.In particular it has formed obvious segmentation advantages in high-end park basic services and property quality services which has forged the Company's core competitiveness.Advantages of industrial-city integration: The Company's space development segment is committed to the development of different business formats such as residential high-end apartments office buildings and industrial parks. From the earliest ITC urban complex and Huanggang Port area development to the development and operation of the large-scale industrial-city complex Lake City Project the advantages of SZPRD characteristic development products of industrial-city complexes have been highlighted. With the implementation of a series of urban renewal project and industrial land acquisition projects the advantages of industrial-city integration will be further consolidated and enhanced.Advantages of being a Fortune 500 subsidiary: The Company's controlling shareholder Shenzhen Investment Holdings Co. Ltd.has been committed to building a world-class state-owned capital investment and operation company and financial holding group.It ranked 370th in the Fortune 500 in 2024. Relying on the controlling shareholder's entire industrial chain advantages in the science and technology park the Company is actively transforming and upgrading focusing on the development and construction of industry-city complexes and has broader development prospects.IV. Analysis of primary business 1. Overview Please refer to the relevant contents of "II. Main businesses engaged in by the Company during the reporting period" in "Management Discussion and Analysis". 2. Revenue and cost (1) Composition of operating revenue Unit: RMB Year 2024 Year 2023 Percentage of Percentage of YoY change Amount Amount operating revenue operating revenue Total operating 2734158884.05100%2965117025.04100%-7.79% revenue By industry Real estate 1003780119.17 36.71% 1234537188.62 41.64% -18.69% Property 1594488341.4958.32%1578719323.9853.24%1.00% management Lease operation 135890423.39 4.97% 151860512.44 5.12% -10.52% By product Real estate 1003780119.17 36.71% 1234537188.62 41.64% -18.69% Property 1594488341.4958.32%1578719323.9853.24%1.00% management 222024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Lease operation 135890423.39 4.97% 151860512.44 5.12% -10.52% By region Shenzhen 2316973557.44 84.74% 2569038060.46 86.64% -9.81% Others 417185326.61 15.26% 396078964.58 13.36% 5.33% Subsales model (2) Industry product region and sales model accounting for more than 10% of the Company's operating revenue or operating profit □Applicable □Not applicable Unit: RMB YoY change in YoY change in YoY change in Operating revenue Operating costs Gross margin operating operating costs gross margin revenue By industry Real estate 1003780119.17 843578721.75 15.96% -18.69% 3.06% -17.74% Property managemen 1594488341.49 1320671101.86 17.17% 1.00% 0.30% 0.58% t By product Real estate 1003780119.17 843578721.75 15.96% -18.69% 3.06% -17.74% Property managemen 1594488341.49 1320671101.86 17.17% 1.00% 0.30% 0.58% t By region Subsales model Under the circumstances that the calculation method of the Company's main business data is adjusted during the reporting period the Company's main business data for the latest period is adjusted according to the calculation method at the end of the reporting period □Applicable □Not applicable (3) Whether the Company's physical sales revenue is greater than the revenue of labor services □Yes □No (4) Performance of major sales contracts and major procurement contracts signed by the Company as of the reporting period □Applicable □Not applicable (5) Composition of operating costs Industry classification Unit: RMB Year 2024 Year 2023 Industry Item YoY change classification Amount Proportion Proportion in Amount in operating operating costs 232024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. costs Real estate 843578721.75 37.49% 818496053.38 36.65% 0.84% Property 1320671101.8658.70%1316777091.3258.95%-0.25% management Lease operation 85764264.72 3.81% 98252237.79 4.40% -0.59% Notes None (6) Whether there was any change in the consolidation scope during the reporting period □Yes □No For details please refer to IX. Changes in consolidation scope of Section X Financial Reports of this report. (7) Information about significant changes or adjustments in the Company's business products or services during the reporting period □Applicable □Not applicable (8) Main sales customers and suppliers Main sales customers of the Company Total sales amount of top five customers (RMB) 230591030.13 Ratio of top 5 customers' sales to total annual sales 8.43% Ratio of related party sales among top 5 customers to total 6.24% annual sales Information on the Company's top 5 customers No. Customer name Sales amount (RMB) Ratio in total annual sales 1 Customer 1 170561801.31 6.24% 2 Customer 2 21344276.27 0.78% 3 Customer 3 13872016.89 0.51% 4 Customer 4 12979331.92 0.47% 5 Customer 5 11833603.74 0.43% Total -- 230591030.13 8.43% Other information on main customers □Applicable □Not applicable Legal person 1 has the same control relationship with the Company.Main suppliers of the Company Total purchase amount of top five suppliers (RMB) 221845140.26 Ratio of total purchase amount of the top five suppliers in the 22.30% total annual purchase amount Ratio of related party purchases among top 5 suppliers to total 6.27% annual purchases Information on the Company's top 5 suppliers 242024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Ratio in the annual purchase No. Supplier name Purchase amount (RMB) amount Shenzhen Bay Technology Development 1 Co. Ltd. 62382807.01 6.27% China Construction Fifth Engineering 2 Bureau Group Co. Ltd. 56288720.85 5.66% 3 Shenzhen Security Service Co. Ltd. 44373356.40 4.46% Shenzhen Sunrise Human Settlement 4 Environmental Service Co. Ltd. 34398400.00 3.46% Shenzhen Shekou Security Service Co. 5 Ltd. 24401856.00 2.45% Total -- 221845140.26 22.30% Other information on main suppliers □Applicable □Not applicable Shenzhen Bay Technology Development Co. Ltd. is a wholly-owned subsidiary of Shenzhen Investment Holdings Co. Ltd. the controlling shareholder of the Company. In addition the other four suppliers have no related relationships with the Company. 3. Costs Unit: RMB Explanation of Year 2024 Year 2023 YoY change significant changes Selling and distribution 43995985.4146757158.57-5.91% expenses G&A expenses 284433101.74 310578375.15 -8.42% Financial expenses 41043648.75 43846029.30 -6.39% R&D expenses 5351808.44 4133484.37 29.47% 4. R&D investment □Applicable □Not applicable Expected impact Name of main on the Company's Purpose of the project Project progress Objectives to be achieved R&D project future development Based on the five dimensions— comprehensive overview subsystem By integrating BIM overview equipment group analysis model technology we equipment view analysis and equipment enhance operation and knowledge base—the BIM-integrated maintenance IOC enables efficient and accurate BIM operation efficiency realize the Increase product decision analysis overall management and maintenance visualization features advantages and Delivered problem identification resolution and management of BIM models and market solution methods for any scenario in system enable owners to competitiveness smart buildings. The large screen also manage assets and supports data governance analysis and make informed comprehensive IOC components to decisions more display various indicators such as effectively.histograms line graphs scatter diagrams Sankey diagrams and heat maps meeting 252024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. the display requirements for different business scenarios.This product combines the latest mobile In order to address the Internet IoT big data BIM and other intelligent technologies. It is a solution integrating management of operation and maintenance tools building facilities it management and intelligent decision- provides a powerful making in the real estate and facility integrated management of buildings. It can provide Building management platform full life cycle management functions from Add new market intelligent for asset owners and Delivered entry operation and maintenance to opportunities integrated system operators to achieve disposal for various facility assets within asset value the whole range covering engineering preservation and environment safety customer service appreciation cost quality and other businesses and has the reduction and characteristics of extensive integration efficiency intelligent monitoring intelligent alarm improvement.intelligent scheduling and so on.The platform consists of FMS facility management subsystem IMS IoT monitoring subsystem EMS energy management subsystem basic support subsystem BI intelligent report system Combining the subsystem and mobile application Internet of Things big system. It can realize the implementation data BIM and other management of the process personnel technologies it and standard system of real estate and provides solutions facility operation and maintenance Increase product Digital integrated integrating operation management; realize unmanned machine advantages and management Delivered and maintenance room management save labor costs and market platform tools management improve safety assurance; realize energy competitiveness and intelligent consumption analysis management; have decision-making for the function of providing basic data real estate and facility support for the whole platform; realize management. statistical analysis and decision support in personnel management asset management task management customer service etc.; realize internal management and convenient use of customer mobile terminals.The specific functions of the system include: hospital equipment and infrastructure management material and By introducing supply chain management environmental information management safety management technology such as medical service and patient experience the Internet of Things management energy conservation Hospital microservices and big emission reduction， and environmentalintelligent data the hospital's protection data analysis and decision- Add new market logistics operations can be Delivered making. It has multi-interface functions opportunities management optimized service such as work order board task platform quality and efficiency processing workbench plan can be improved and management budget management resources can be process management work analysis utilized to the space management asset management maximum extent.and customer service personnel management etc. which can be used on the APP terminal. 262024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. As a unified intelligent operation center for enterprise administration this system takes the digital middle platform as the The system takes the base layer to build data collection and digital middle business self-operation capabilities and platform as the base takes professional management as the layer build data service layer to build an administrative collection and operation control platform (E-IOC). The Enterprise business self- system is mainly for management administrative Add new market operation capabilities Delivered employees and IT administrators related intelligent opportunities and take professional to enterprise administration and logistics.operation center management as the The main functions include: service layer to build comprehensive management billboard an administrative professional management report query operation control report export data entry event center platform. account permission management organizational structure management indicator management mobile terminal and data center.R&D personnel of the Company Year 2024 Year 2023 Change ratio Number of R&D personnel 41 38 7.89% Proportion of R&D personnel 0.46% 0.43% 0.03% Educational structure of R&D personnel Undergraduate 31 28 10.71% Master 1 2 -50.00% Junior college 9 8 12.50% Age composition of R&D personnel Under 30 24 27 -11.11% 30-40 years old 14 7 100.00% 40+34-25.00% R&D investment Year 2024 Year 2023 Change ratio Amount of R&D investment 5351808.444133484.3729.47% (RMB) Ratio of R&D investment to 0.20%0.14%0.06% operating revenue (%) Amount of capitalized R&D 0.000.00 investment (RMB) Ratio of capitalized R&D investment to R&D 0.00% 0.00% investment Reasons and impact of major changes in the composition of the Company's R&D personnel □Applicable □Not applicable Reasons for the significant change in the proportion of total R&D investment to operating revenue compared with the previous year □Applicable □Not applicable Reasons for the significant change in the capitalization rate of R&D investment and its rationality explanation 272024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. □Applicable □Not applicable 5. Cash flows Unit: RMB Item Year 2024 Year 2023 YoY change Sub-total of cash inflows 3047561766.413509206475.96-13.16% from operating activities Sub-total of cash outflows 4471559940.933773299460.2918.51% from operating activities Net cash flows from operating -1423998174.52-264092984.33-439.20% activities Sub-total of cash inflows 55996880.52634734196.73-91.18% from investing activities Sub-total of cash outflows 67756411.997641999.39786.63% from investing activities Net cash flows from the -11759531.47627092197.34-101.88% investing activities Sub-total of cash inflows 1239948405.211484580254.47-16.48% from financing activities Sub-total of cash outflows 927580751.94624251511.6348.59% from financing activities Net cash flows from financing 312367653.27860328742.84-63.69% activities Net increase in cash and cash -1122339250.821223445277.64-191.74% equivalents Description of main influencing factors of significant YoY changes in relevant data □Applicable □Not applicable * The year-on-year decrease in cash inflows from operating activities mainly due to the decrease in real estate revenue during the reporting period.* The year-on-year increase in cash outflows from operating activities mainly due to the increase in land value increment tax payments during the reporting period.* The cash inflows from investing activities decreased YoY mainly due to the receipt of equity transfer payments in the same period last year.* The year-on-year increase in cash outflows from investing activities mainly due to the increase in long-term assets acquisition during the reporting period.* The year-on-year decrease in cash inflows from financing activities mainly due to the decrease in new bank borrowings during the reporting period.* The year-on-year increase in cash outflows from financing activities mainly due to the increase in bank borrowings repayment during the reporting period.Explanation of the reasons for the significant difference between the net cash flow generated from the operating activities of the Company and the net profit of the current year during the reporting period □Applicable □Not applicable 282024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. The net cash flows generated by the Company's operating activities during the reporting period were -1423998174.52 which was significantly different from the net profit of -1287143724.11 during the reporting period. The main reasons are that the land value increment tax accrued in previous years was paid the provision for asset impairment was accrued and the income from investments in joint ventures was recognized during the reporting period.V.Analysis of non-primary business □Applicable □Not applicable Unit: RMB Whether it is Amount Ratio of total profit Formation reasons sustainable Except for the Mainly the compensation received compensation received by the joint ventures Investment income 185619483.06 -15.55% by joint ventures for for house house expropriation expropriation it is sustainable.Mainly provision for Asset impairment -1036113360.07 86.79% No inventory depreciation Mainly forfeiture of Non-operating revenue 1067805.57 -0.09% No deposits and guarantee Non-operating Mainly payment of 8355964.49 -0.70% No expenses liquidated damages Mainly provision for Credit loss -363088397.28 30.41% No bad debts VI. Analysis of assets and liabilities 1. Major changes in asset composition Unit: RMB As at the end of 2024 Early 2024 Increase/decre Explanation of Ratio of Ratio of ase in Amount Amount significant changes total assets total assets percentage Resulting from the decrease in real 1678116644. Monetary funds 10.97% 2748798476.72 16.18% -5.21% estate revenue and 12 the payment of land value increment tax Accounts Caused by provision 476014729.603.11%502806453.882.96%0.15% receivable for bad debts Contract assets 468765.62 0.00% 844485.57 0.00% 0.00% Resulting from 10685045153 provision for Inventories 69.87% 11098209095.74 65.33% 4.54%.41 inventory depreciation Investment 374035893.072.45%386810800.472.28%0.17% properties Long-term Increase in equity 268187805.52 1.75% 84057750.55 0.49% 1.26% investment income investments from joint ventures 292024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Fixed assets 52712396.64 0.34% 66436408.90 0.39% -0.05% Right-of-use 16967620.030.11%23516796.220.14%-0.03% assets Resulting from Short-term decrease in short- 190165458.331.24%230915000.001.36%-0.12% borrowings term bank borrowings Resulting from the Contract 336164629.72 2.20% 820424953.42 4.83% -2.63% carry-forward of liabilities operating revenue Caused by the accounting adjustment of Long-term 4755314631. 31.09% 1399889274.47 8.24% 22.85% deferred bank borrowings 26 borrowings originally due within one year Lease liabilities 11089072.57 0.07% 10571092.27 0.06% 0.01% Advances to 7789173.690.05%11983086.350.07%-0.02% suppliers Increase in recovery of part of current Other 273333289.51 1.79% 624394372.82 3.68% -1.89% accounts and receivables provision for bad debts Increase in Assets held for investment 170154.050.00%0.000.00%0.00% sale properties held for sale Other current Increase in input tax 181721113.821.19%127774825.510.75%0.44% assets to be deducted Caused by Intangible 471565.39 0.00% 889801.14 0.01% -0.01% amortization of assets intangible assets Other non- Increase in contract 13875501.610.09%3505155.930.02%0.07% current assets acquisition costs Accounts 1043092277. Increase in project 6.82%662869059.593.90%2.92% payable 27 funds payable Resulting from the 3224280429. Taxes payable 21.08% 4026957347.94 23.70% -2.62% payment of land 52 value increment tax Non-current Decrease in long- liabilities 506702676.30 3.31% 3092324853.07 18.20% -14.89% term borrowings maturing within due within one year one year Decrease in output Other current 23186263.57 0.15% 68373661.13 0.40% -0.25% tax to be carried liabilities forward Increase in Estimated provision for 934205.510.01%650000.000.00%0.01% liabilities estimated pending litigation expenses Deferred tax Decrease in right- 4100164.350.03%5862279.700.03%0.00% liabilities of-use assets High proportion of overseas assets 302024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. □Applicable □Not applicable 2. Assets and liabilities measured at fair value □Applicable □Not applicable Unit: RMB Profit or loss from Cumulative Impairment Amount Amount changes in changes in provision purchased Beginning sold in the Other Ending Item fair value fair value in the in the balance current changes balance in the included in current current period current equity period period period Financial assets 4. Other equity instrument 636926.20 -60387.90 9693.52 586231.82 investment s Total of the 636926.20-60387.909693.52586231.82 above Financial 0.000.00 liabilities Other changes Other changes are affected by changes in exchange rates.Whether there were significant changes in the measurement attributes of the Company's major assets during the reporting period □Yes □No 3. Restrictions on asset rights as of the end of the reporting period Item Ending book balance Reason for restriction Monetary funds 67316759.82 [Note 1]-[Note 11] Land use right of Lake City Project plot 401867324.00 [Note 12] Land use right of Plot D of Shenyang Digital Intelligent City 474272747.56 [Note 13] Project and Plot D construction in progress Total 943456831.38 [Note 1]: Among the monetary funds with restricted right of use at the end of the period RMB 2950000.00 was the bank guarantee deposit of the subsidiary Shenzhen Shenfubao Property Development Co. Ltd.[Note 2]: Among the monetary funds with restricted right of use at the end of the period RMB 3000000.00 was frozen by the court due to pre-litigation preservation for contract disputes of the subsidiary Shenzhen Facility Management Community Co. Ltd.[Note 3]: Among the monetary funds with restricted right of use at the end of the period RMB 117500.00 was the bank guarantee deposit of the subsidiary Shenzhen Facility Management Community Co. Ltd.[Note 4]: Among the monetary funds with restricted right of use at the end of the period RMB 1000.00 was the POS machine deposit of the subsidiary Shenzhen Shenfubao Property Development Co. Ltd. Jiangxi Branch.[Note 5]: Among the monetary funds with restricted right of use at the end of the period RMB 203171.00 was frozen by the court due to pre-litigation preservation for contract disputes of the subsidiary Shenzhen Huangcheng Real Estate Co. Ltd. 312024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. [Note 6]: Among the monetary funds with restricted right of use at the end of the period there are RMB 57490835.33 of time deposits purchased at the end of the period and their interest.[Note 7]: Among the monetary funds with restricted right of use at the end of the period RMB 50349.36 was the collection business guarantee of the subsidiary Shenzhen Jiayuan Property Management Co. Ltd.[Note 8]: Among the monetary funds with restricted right of use at the end of the period RMB 284323.30 was the frozen entrusted payment of the subsidiary Yangzhou Wohui Real Estate Co. Ltd.[Note 9]: Among the monetary funds with restricted right of use at the end of the period RMB 484000.00 was frozen by the court due to pre-litigation preservation for contractual disputes of the subsidiary Chongqing Shenguomao Real Estate Management Co.Ltd.[Note 10]: Among the monetary funds with restricted right of use at the end of the period RMB 1600000.00 was the bank guarantee deposit of the subsidiary Shenzhen Shenshan Special Cooperation Zone ITC Property Development Co. Ltd.[Note 11]: Among the monetary funds with restricted right of use at the end of the period there is RMB 1135580.83 which is the loan guarantee historically provided by the Company as a real estate developer and paid for the buyers of commercial housing according to the real estate operation practice.[Note 12]:Due to the needs of daily operating activities the Company applied for a loan from Industrial Bank Shenzhen Branch and mortgaged the land use right of the Lake City Project plot it held.[Note 13]: Due to the needs of daily operating activities the Company applied for a loan from Agricultural Bank of China Yangzhou Branch and mortgaged the land use right of Plot D of Shenyang Digital Intelligent City Project and the construction in progress of Plot D.VII. Analysis of investment status 1. Overall situation □Applicable □Not applicable 2. Major equity investments acquired during the reporting period □Applicable □Not applicable 3. Major non-equity investments in progress during the reporting period □Applicable □Not applicable 4. Investment in the financial assets (1) Securities investment □Applicable □Not applicable Unit: RMB Accou Profit Cumu Amou Amou Profit Securi Initial nting Openi or lative nt nt or Closin Accou Sourc ties Stock invest measu ng g Ticker loss chang purch sold loss nting e of variet name ment remen book from es in ased in the during book items funds y cost t value chang fair in the curren the value mode es in value curren t report 322024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. fair includ t period ing value ed in period period in the equity curren t period Acqui red Dome Other Fair from stic 40001 Jintia equity 3565 value - debt and 6 、 n A 6369 9693. 5862 instru856.0 measu 0.00 6038 0.00 0.00 restru foreig 42001 Jintia 26.20 52 31.82 ment 6 remen 7.90 cturin n 6 n B invest t g of stocks ments Jintia n 3565- 63699693.5862 Total 856.0 -- 0.00 6038 0.00 0.00 -- -- 26.205231.82 67.90 (2) Derivative investment □Applicable □Not applicable The Company had no derivative investment during the reporting period. 5. Use of funds raised □Applicable □Not applicable The Company had no use of funds raised during the reporting period.VIII. Sales of major assets and equities 1. Sales of major assets □Applicable □Not applicable The Company did not sell major assets during the reporting period. 2. Sale of major equity □Applicable □Not applicable IX. Analysis of major holding and participating companies □Applicable □Not applicable Major subsidiaries and participating companies with an impact of 10% or more on the Company's net profit Unit: RMB Company Company Main Registered Operating Operating Total assets Net assets Net profit name type business capital revenue profit Shenzhen Real estate Subsidiarie 30000000. 71843923 30282431 18179209 30530415. 22903638.Huangchen developme s 00 86.07 82.44 6.61 22 26 g Real nt and sales 332024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Estate Co.Ltd.Shenzhen Internation al Trade Property Subsidiarie 20000000. 20937906 45941701 16008153 11621611 80745015.Center manageme s 00 63.58 4.84 75.18 8.61 28 Property nt service Manageme nt Co. Ltd.Information on acquisition and disposal of subsidiaries during the reporting period □Applicable □Not applicable Notes to main holding and participating companies X. Structured entities controlled by the Company □Applicable □Not applicable XI. Prospects for the future development of the Company (I) Industry pattern and trend See "I. Industry situation of the Company during the reporting period" in Section III "Management Discussion and Analysis" of this report.(II) Development strategy of the Company With the overall downward trend of the development of the traditional real estate market SZPRD which is mainly engaged in traditional real estate is facing a severe industry situation.In this context the Company proposed the "12345" overall development idea of "1 vision + 2 major sectors + 3 drivers + 4 major businesses + 5 value-added services". Focusing on the two core modes of "space asset management" and "space digital ecological operation" through "main business extension and edge breakthrough" the Company focuses on the development of four major businesses namely industrial-city space development industrial ecological operation property management service and main business ecological investment and quickly lays out and grafts five value-added services namely high-end consulting services customized butler services intelligent operation platforms data mining and utilization and business ecosystem integration. With scientific and technological innovation as the first driving force the Company gives full play to the leverage role of capital builds a portal-type intelligent management and control service platform based in Shenzhen with the Guangdong Hong Kong and Macao metropolitan area and surrounding areas as the expansion area builds the function of intelligent social base point and creates a leading intelligent industrial-city space operator in China.In the future the Company will base on the current development situation grasp the rhythm of development steps and follow the three-step implementation path of "strengthening the foundation making breakthroughs at the edge and focusing on leading" seek transformation and upgrading opportunities in development promote incremental development in transformation build new unique development advantages of the Company and create a new pattern of innovation and development of the Company.(Ⅲ) Business plan for 2025 In 2025 the Group will continue to focus on the four aspects of "stabilizing flow controlling cost expanding capacity and 342024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. strengthening foundation" promote the overall stability of production and operation with positive results resolutely overcome a number of difficulties affecting the promotion of major projects and guide the development of the Group into the benign track of simultaneous and competitive development of various sectors and projects; Continue to be a vanguard in the reform and development of enterprises fully complete the annual tasks and objectives and make new contributions to the realization of high- quality and sustainable development of the Group and the vision of building China's leading intelligent industrial-city space operator.First based on the existing resource endowment and business level create conditions to strive to complete the annual main indicators according to the planned number. Achieve the annual operating revenue total profit and other budget goals and promote the marketing of key projects and the development of stock projects in an orderly manner.The second is to overcome difficulties and strengthen node management. Implement responsibilities improve the driving ability management and control ability and operation efficiency of the project and ensure that the work of each project is implemented in strict accordance with the node plan and the quality and quantity are guaranteed.Third continue to strengthen the independent operation capacity building of secondary platform companies platform function construction and role play and strengthen the development pattern of the main real estate industry. Establish a standardized model for the whole process of real estate project development. Continuously improve the project development management system strive to make up for the shortcomings and cooperate with each business line such as project design engineering bidding and marketing of the Group comprehensively benchmark projects in the industry to improve the management level build a set of efficient standardization mode for the whole process of real estate project development and ensure the efficient and stable operation of the whole life cycle of the project.Fourth adhere to the overall leadership of the party and promote the development of the group's party building brand in a new stage. Continue to strengthen the construction of grass-roots party organizations and party members give full play to the party's political leading role to help business development and select opportunities to carry out characteristic theme party building and corporate culture publicity and creation activities; Financial management aims to improve the efficiency and benefit of resource use optimize resource allocation strictly control and assess budgets strengthen business and financial integration financial analysis tax management etc. and raise financing through multiple channels; Improve the construction of the training system build an efficient cadre selection mechanism deepen the application of the HR system optimize the salary management plan and strengthen salary control measures.Fifth there is constant vigilance regarding workplace safety petition handling and stability maintenance. Improve the system implement the quarterly assessment of work safety and a reasonable reward and punishment system deepen the construction of work safety standardization and "dual prevention mechanism" strengthen normal work safety inspection regularly sort out hidden risks implement list management of key areas and important links of risk points and strictly implement rectification to ensure that no work safety accidents occur throughout the year; Strengthen the coordination and linkage between the letter and visit work and the key operation work of the Group deepen the case-based learning and case-based governance improvement and give full play to the role of the letter and visit work in supporting guaranteeing and boosting operation. (4) Possible risks 1. Market risk Under the policy guidance of "no speculation in housing" the demand side of the real estate market is still in a downward channel.The development space of the real estate industry is constantly being compressed and the industry profit is greatly reduced. It has 352024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. changed from the previous land dividend to the era of asking for dividends from management especially for the cost design engineering and other business capabilities which has brought unprecedented challenges. The promotion conditions of urban renewal project are complex and full of resistance and the Company's business development is facing opportunities and challenges.In the face of the grim situation the Company deeply studied the opportunities and challenges brought by macroeconomic trends and policy trends actively sought the direction of strategic breakthrough adhered to steady operation raised funds through multiple channels focused on improving management level seized land market opportunities based in Shenzhen and focused on improving its sustainable development ability with Guangdong-Hong Kong-Macao metropolitan area and surrounding areas as its expansion area. 2. Land reserve risk The Company's lack of land reserves and insufficient development potential still exist. In recent years the supply of residential land in the Shenzhen market is still tight while large housing enterprises have expanded their market share accelerated the pace of industry mergers and the real estate industry has concentrated to the head which has exacerbated the concentration of land reserve scale. The external environment and industry situation are complex and severe the incremental market size is further compressed and the market competition is intensifying.In the face of challenges the Company will continue to expand through market competition capital operation and urban renewal actively increase the expansion of land reserves and promote the implementation of projects as soon as possible. In terms of property types residential projects will focus on the Guangdong-Hong Kong-Macao Greater Bay Area the Yangtze River Delta metropolitan area and existing project areas and gradually focus on and lay out key cities in the central urban agglomeration centered on Wuhan the western Chengyu region and the Beijing-Tianjin-Hebei region; The urban renewal project will be mainly in Shenzhen Dongguan and Huizhou and other Shenzhen-adjacent areas and gradually follow the Guangzhou urban renewal project; The comprehensive industry-city projects will focus on the Guangdong-Hong Kong-Macao Greater Bay Area the Yangtze River Delta the central Wuhan region and the western Chengyu region. 3. Financing risk In recent years the Company has actively increased its land reserve and accelerated its business development. In this process it 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 also need to be financed externally through bank borrowings and issuance of securities.At present the Company has a stable financial position and good credit status. In the future it will further strictly control financial risks actively explore various financing channels and raise funds for project development and construction.The above business plans and business objectives do not represent the listed company's profit forecast for 2025. Whether they can be realized depends on various factors such as changes in market conditions and the efforts of the business team and there are great uncertainties. Investors should pay special attention to them.XII. Reception survey communication interview and other activities during the reporting period □Applicable □Not applicable Type of Index of Reception Reception Reception Reception Main contents discussed and reception basic time place mode object information provided object information on the 362024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. survey January 8 The Telephone Asked whether the Company will Not Individual Individual 2024 Company communication announce the performance forecast applicable Inquired about the resolution of January 8 The Telephone Not Individual Individual horizontal competitions and the 2024 Company communication applicable progress of project development Online January 8 The communication Inquired about the Company's relevant Not Individual Individual 2024 Company on the network business layout applicable platform January 17 The Telephone Inquired about the Company's Not Individual Individual 2024 Company communication performance in the fourth quarter applicable Online Inquired about the Company's market January 25 The communication capitalization management plan and Not Individual Individual 2024 Company on the network whether there is a plan to repurchase applicable platform the Company's B shares Online January 26 The communication Inquired about the Company's relevant Not Individual Individual 2024 Company on the network business layout and dividend plan applicable platform Online Inquired about the Company's January 26 The communication Not Individual Individual performance and whether to issue 2024 Company on the network applicable performance forecast platform Online Asked if the Company has plans to January 28 The communication Not Individual Individual participate in urban village renovation 2024 Company on the network applicable projects platform Online January 29 The communication Asked if the Company has plans to Not Individual Individual 2024 Company on the network implement blockchain technology applicable platform Inquired about the reasons for the decline in the Company's performance February 21 The Telephone Not Individual Individual in the third quarter the annual 2024 Company communication applicable performance and the real estate and property management projects February 29 The Telephone Inquired about the Company's Not Individual Individual 2024 Company communication performance and dividend plan applicable Online Inquired about the selection method February 29 The communication adopted by the Company for the Not Individual Individual 2024 Company on the network renewal of the financial audit applicable platform institution in 2024 Online March 12 The communication Inquired about the Company's plans for Not Individual Individual 2024 Company on the network ESG governance applicable platform Online March 20 The communication Asked whether the Company has Not Individual Individual 2024 Company on the network established a financial sharing center applicable platform March 25 The Telephone Inquired about the Company's Not Individual Individual 2024 Company communication performance in 2023 applicable March 25 The Telephone Not Individual Individual Inquired about horizontal competitions 2024 Company communication applicable March 28 The Online Asked if the Company has plans to Not Individual Individual 2024 Company communication participate in urban village renovation applicable 372024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. on the network projects platform Online April 1 The communication Inquired about the dividend plan and Not Individual Individual 2024 Company on the network time applicable platform Online April 1 The communication Not Individual Individual Inquired about the dividend plan 2024 Company on the network applicable platform April 3 The Telephone Inquired about the Company's relevant Not Individual Individual 2024 Company communication business layout applicable April 8 The Telephone Inquired about the progress of Not Individual Individual 2024 Company communication horizontal competition resolution applicable April 11 The Telephone Inquired about the Company's Not Individual Individual 2024 Company communication performance forecast in 2024 applicable April 11 The Telephone Inquired about the progress of Not Individual Individual 2024 Company communication horizontal competition resolution applicable For details please refer Institutional to the investors Record such as Sheet of Shenzhen Investor Huaxia Inquired about the development of the Relations April 11 The Compound Company's business segments and Activities Field survey Institution 2024 Company Profit future plans etc. on April Private 11 2024 Equity Fund disclosed Management by the Co. Ltd. Company onApril 11 2024 on cninf April 12 The Telephone Inquired about the progress of Not Individual Individual 2024 Company communication horizontal competition resolution applicable April 17 The Telephone Inquired about the holding time of the Not Individual Individual 2024 Company communication Company's shareholders' meeting applicable April 17 The Telephone Inquired about the progress of Not Individual Individual 2024 Company communication horizontal competition resolution applicable April 18 The Telephone Not Individual Individual Inquired about dividends 2024 Company communication applicable April 18 The Telephone Inquired about the time of performance Not Individual Individual 2024 Company communication briefing meeting applicable April 18 The Telephone Inquired about the holding time of the Not Individual Individual 2024 Company communication Company's shareholders' meeting applicable Online April 19 The communication Inquired about the reasons for the Not Individual Individual 2024 Company on the network decline in the Company's profits applicable platform April 22 The Telephone Inquired about the Company's Not Individual Individual 2024 Company communication financing credit applicable Investors For details Online Network participating Inquired about the Company's please refer April 22 communication platform Others in the operations financial situation dividend to the 2024 on online Company's situation and development plan Record platforms 2024 annual Sheet of 382024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. performance Investor briefing Relations through the Activities panoramic onApril network 22 2024 performance disclosed platform by the Company onApril 222024 on cninf April 23 The Telephone Inquired about the progress of Not Individual Individual 2024 Company communication horizontal competition resolution applicable April 26 The Telephone Asked the Company how to deal with Not Individual Individual 2024 Company communication the new real estate policy applicable The Telephone Not May 7 2024 Individual Individual Inquired about the dividend plan Company communication applicable The Telephone Inquired about the progress of Not May 7 2024 Individual Individual Company communication horizontal competition resolution applicable Online May 10 The communication Asked questions about horizontal Not Individual Individual 2024 Company on the network competitions applicable platform Online May 21 The communication Inquired about the progress of Not Individual Individual 2024 Company on the network horizontal competition resolution applicable platform May 22 The Telephone Inquired about the progress of Not Individual Individual 2024 Company communication horizontal competition resolution applicable May 27 The Telephone Asked the reason for the decline in the Not Individual Individual 2024 Company communication Company's share price applicable May 30 The Telephone Inquired about the Company's Not Individual Individual 2024 Company communication operation applicable The Telephone Inquired about the progress of Not June 4 2024 Individual Individual Company communication horizontal competition resolution applicable Inquired about the opening sales of June 12 The Telephone Lake City and the revenue recognition Not Individual Individual 2024 Company communication of the Company's real estate projects in applicable the first half of the year June 17 The Telephone Inquired about the Company's dividend Not Individual Individual 2024 Company communication payment arrival time applicable June 17 The Telephone Inquired about the Company's relevant Not Individual Individual 2024 Company communication business applicable June 17 The Telephone Inquired about the Company's dividend Not Individual Individual 2024 Company communication payment arrival time applicable June 17 The Telephone Inquired about the Company's Not Individual Individual 2024 Company communication operation applicable June 19 The Telephone Inquired about the Company's dividend Not Individual Individual 2024 Company communication payment arrival time applicable June 27 The Telephone Inquire about the Company's Not Individual Individual 2024 Company communication performance applicable Online Inquiry about the progress of the June 30 The communication Not Individual Individual Company's transfer of equity of 2024 Company on the network applicable wholly-owned subsidiary platform The Telephone Inquired about the transfer of the Not July 2 2024 Individual Individual Company communication agreement of Shenzhen Investment applicable 392024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Holdings The Telephone Inquired about the progress of Not July 3 2024 Individual Individual Company communication horizontal competition resolution applicable The Telephone Inquired about the Company's Not July 4 2024 Individual Individual Company communication operation applicable The Telephone Inquired about the progress of Not July 5 2024 Individual Individual Company communication horizontal competition resolution applicable The Telephone Inquired about the progress of Not July 8 2024 Individual Individual Company communication horizontal competition resolution applicable The Telephone Inquired about the Company's Not July 9 2024 Individual Individual Company communication performance applicable Inquired about the Company's July 11 The Telephone Not Individual Individual performance and the progress of 2024 Company communication applicable horizontal competitions resolution July 15 The Telephone Inquired about the Company's dividend Not Individual Individual 2024 Company communication payment arrival time applicable July 24 The Inquired about the progress of Not Others Individual Individual 2024 Company horizontal competition resolution applicable Inquired about the specific situation of the arbitration between the Company July 24 The Telephone Not Individual Individual and Xinhai Rongyao and the progress 2024 Company communication applicable of the solution of horizontal competitions Online Inquired about the Company's relevant July 25 The communication Not Individual Individual business layout and whether there is a 2024 Company on the network applicable plan to transform platform August 2 The Telephone Asked the reason for the rise in the Not Individual Individual 2024 Company communication Company's stock price applicable August 2 The Telephone Inquired about the Company's Not Individual Individual 2024 Company communication operation applicable Online August 2 The communication Inquired about the Company's relevant Not Individual Individual 2024 Company on the network business layout applicable platform Online August 6 The communication Inquired about the Company's relevant Not Individual Individual 2024 Company on the network business layout applicable platform Asked when the opening time of Lake August 7 The Telephone Not Individual Individual City was and the progress of the 2024 Company communication applicable solution of horizontal competitions August 7 The Telephone Inquired about the progress of Not Individual Individual 2024 Company communication horizontal competition resolution applicable August 8 The Telephone Inquired about the Company's views on Not Individual Individual 2024 Company communication the real estate market applicable August 8 The Telephone Inquired about the Company's future Not Individual Individual 2024 Company communication business plan applicable Inquired about the content of the August 12 The Telephone Not Individual Individual Company's stock change 2024 Company communication applicable announcement Online August 18 The communication Inquired about the progress of Not Individual Individual 2024 Company on the network horizontal competition resolution applicable platform August 22 The Telephone Inquired about the relevant matters of Not Individual Individual 2024 Company communication the agreement transfer of Shenzhen applicable 402024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Investment Holdings and the progress of the solution of horizontal competitions Online August 25 The communication Inquired about property management Not Individual Individual 2024 Company on the network business applicable platform Inquired about the relevant matters of the agreement transfer of Shenzhen August 28 The Telephone Not Individual Individual Investment Holdings and the progress 2024 Company communication applicable of the solution of horizontal competitions Online September The communication Inquired about the progress of Not Individual Individual 12 2024 Company on the network horizontal competition resolution applicable platform September The Telephone Inquired about the Company's Not Individual Individual 24 2024 Company communication development prospects applicable September The Telephone Ask about the progress of horizontal Not Individual Individual 24 2024 Company communication competition resolution applicable September The Telephone Inquired about the reason for the delay Not Individual Individual 30 2024 Company communication of horizontal competitions applicable Inquired about the Company's future October 15 The Telephone Not Individual Individual business plan and the Company's 2024 Company communication applicable inventories October 15 The Telephone Inquired about the Company's relevant Not Individual Individual 2024 Company communication business applicable Online October 16 The communication Inquired about the reconstruction Not Individual Individual 2024 Company on the network project of China World Mall applicable platform October 18 The Telephone Inquired about the renovation of China Not Individual Individual 2024 Company communication World Mall applicable Online Inquired about the progress of the October 31 The communication transfer of some shares by the Not Individual Individual 2024 Company on the network controlling shareholder of the applicable platform Company Online October 31 The communication Not Individual Individual Inquired about horizontal competitions 2024 Company on the network applicable platform Online November 6 The communication Inquired about the Company's market Not Individual Individual 2024 Company on the network capitalization management plan applicable platform November 8 The Asked if the Company has plans to Not Others Individual Individual 2024 Company repurchase B shares applicable Online November 8 The communication Inquired about the Company's relevant Not Individual Individual 2024 Company on the network business layout applicable platform Inquired about the composition of the November 8 The Telephone Company's performance and the Not Individual Individual 2024 Company communication current construction and sale of real applicable estate November The Telephone Inquired about the Company's Not Individual Individual 11 2024 Company communication performance in 2024 applicable 412024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Inquired about the Company's November The Telephone Not Individual Individual development progress and sales of real 11 2024 Company communication applicable estate Online November The communication Asked if the Company has a merger Not Individual Individual 12 2024 Company on the network and acquisition plan applicable platform For details please refer to the Record Sheet of Investor Relations Inquired about the development of the Activities CITIC November The Company's business segments and on Field survey Institution Securities E 14 2024 Company future plans etc. November Fund 142024 disclosed by the Company on November 142024 on cninf Online November The communication Asked questions related to the Not Individual Individual 21 2024 Company on the network Company's letter applicable platform Online November The communication Inquired about the Company's self-use Not Individual Individual 21 2024 Company on the network and idle properties applicable platform Online November The communication Not Individual Individual Inquired about the Company's assets 21 2024 Company on the network applicable platform November The Telephone Asked if the Company has a merger Not Individual Individual 25 2024 Company communication and acquisition plan applicable Online Inquired about the progress of the November The communication transfer of some shares by the Not Individual Individual 27 2024 Company on the network controlling shareholder of the applicable platform Company Online November The communication Inquired about the Company's relevant Not Individual Individual 27 2024 Company on the network business applicable platform Online December 5 The communication Inquired about the Company's relevant Not Individual Individual 2024 Company on the network business applicable platform December The Telephone Inquired about the Company's relevant Not Individual Individual 19 2024 Company communication business applicable 422024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. XIII. Formulation and implementation of market value management system and valuation improvement plan Whether the Company has formulated a market value management system.□Yes □No Whether the Company has disclosed plans for valuation enhancement.□Yes □No XIV. Implementation of the action plan of "double improvement of quality return".Whether the Company has disclosed the announcement of the action plan of "double improvement of quality return".□Yes □No 432024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Section IV Corporate Governance I. Basic status The internal governance structure of the Company is complete sound and clear and complies with the provisions of the Company Law the Articles of Association and other laws regulations and normative documents. The shareholders' meeting the Board and the Board of Supervisors of the Company were held in strict accordance with the relevant rules and regulations and all directors and supervisors could conscientiously perform their duties and be diligent and responsible. The legal person governance structure of the Company is perfect and the operation of the Company is standardized.The departmental organization of the Company follows the principles of science simplification and high efficiency. At present there are Party-Mass Affairs Office the Board Office General Office (Process and Information Center and the Office of Letters and Visits) Discipline Inspection and Supervision Office (Audit Department Board of Supervisors Office) Human Resources Department (Training Center) Financial Management Department (Settlement Center) Investment and Development Department Operation Management Department Design Management Department (Technical Center) Cost Contract Department Engineering Management Department (Safety Committee Office) and Industrial Operation Office. Each functional department performs its own duties and works in strict accordance with the internal control system to ensure the normal and efficient operation of the Company.The Company has always attached great importance to standardizing the management of insider information and has formulated and improved a series of internal control systems including the "Regulations on the Management of Information Disclosure" "Audit Committee Annual Report Work Regulations" "Annual Report Information Disclosure Major Error Accountability System" "Annual Report Work System" "Insider Information Management System" "Investor Relations Management System" etc. to ensure that the Company's information disclosure is true accurate and complete. During the reporting period the Company strictly complied with securities regulatory requirements in conducting information disclosure and organizing corporate governance meetings. All disclosures were made in a timely accurate and complete manner with no violations of the internal control systems related to information disclosure occurring.Whether there is any significant difference between the actual status of corporate governance and the laws administrative regulations and the provisions issued by the China Securities Regulatory Commission on the governance of listed companies □Yes □No There are no significant differences between the actual status of corporate governance and the laws administrative regulations and the provisions issued by the China Securities Regulatory Commission on the governance of listed companies II. The independence of the Company from the controlling shareholder and actual owner in terms of assets personnel finance organization and business The Company and the controlling shareholder are completely separated in terms of business personnel assets institutions and finance and achieve personnel independence financial independence asset integrity institutional independence and business separation. In terms of business the Company's business is independent of the controlling shareholder with independent and complete business and independent operation ability; in terms of personnel the Company is completely independent from the controlling shareholder in terms of labor and personnel and salary management. The Company's personnel are independent and all employees have signed labor contracts with the Company. The Company is independent from shareholders or other related parties in terms of employee management social security and salary remuneration; in terms of assets the Company's assets are complete independent and the property rights are clear. There is no situation that the assets and funds are occupied by the controlling shareholder and the Company's assets are completely independent of the controlling shareholder; in terms of 442024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. organization the Company has an independent organization and has formulated rules and regulations and responsibilities for each department forming a scientific and reasonable internal control system with clear responsibilities and powers; in terms of finance the Company is financially independent with an independent financial department financial accounting system financial management system and independent financial accounts independent tax payment and independent financial decision-making.The controlling shareholder of the Company shall abide by the code of conduct and shall not directly or indirectly intervene in the Company's business decisions operating activities or use of funds beyond the Company's general meeting but the controlling shareholder may have a certain impact on the Company's major decisions through the shares held.III. Horizontal competitions □Applicable □Not applicable Type of related Work progress relationship Problem type Company name Nature Cause Solution and follow-up with listed plan companies Shenzhen Horizontal Controlling Investment Others Note 1 Note 2 Note 3 competitions shareholder Holdings Co.Ltd.Notes: 1 According to the overall deployment of the Shenzhen Municipal Government on the adjustment of the state-owned assets management system the Shenzhen State-owned Assets Management Commission decided to establish Shenzhen Investment Holdings by merger merging Shenzhen Construction Investment Holdings Shenzhen Investment Management Company and Shenzhen Commerce and Trade Investment Holdings. As a resultShenzhen Investment Holdings has lawfully inherited the 63.82% equity stake in the listed company SZPRD that was previously held by Shenzhen Construction Investment Holding Corporation and Shenzhen Investment Management Corporation. On October 19 2018 Shenzhen Investment Holdings obtained the Confirmation of Securities Transfer Registration for the equity of Shenzhen Property and completed the transfer of the equity of Shenzhen Property. Shenzhen Investment Holdings' wholly-owned subsidiaries Shenzhen Urban Construction Development (Group) Co. Ltd. (hereinafter referred to as "Shenzhen Urban Construction") Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. (hereinafter referred to as "Shenzhen Real Estate") and Shenzhen Property all operate real estate development and commercial housing sales businesses and belong to the same industry and there is horizontal competition. 2. To avoid horizontal competitions Shenzhen Investment Holdings makes the following commitments: 1. Regarding the solutions to horizontal competitions at Shenzhen Urban Construction: While acting as the controlling shareholder of the listed company— and during the period when the Company is listed on the Shenzhen Stock Exchange—Shenzhen Investment Holdings will address Shenzhen Urban Construction's existing businesses that compete with the listed company. Within the scope permitted by laws and regulations Shenzhen Investment Holdings will within 12 months from the date when Shen SZPRD's equity is transferred under its name initiate a practically feasible solution from the competition resolution options below and will complete its implementation within 3 years from that date thereby resolving the existing horizontal competition issues: (1) Shenzhen Urban Construction will sign an asset custody agreement with the listed company entrusting any assets that directly compete with the listed company to that company determining a fair custody fee and taking effective measures during the commitment period to resolve horizontal competitions. (2) Injecting assets in direct competition with the listed company into the listed company; (3) Transferring assets in direct competition with the listed company to an unrelated third party; (4)Other measures that can effectively solve the problem of horizontal competition and are conducive to protecting the interests of listed companies and the legitimate 452024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. rights and interests of other shareholders. Before solving the existing horizontal competition in the process of business of the listed company and the companies enterprises and economic organizations controlled or actually controlled by Shenzhen Investment Holdings (excluding the enterprises controlled by the listed companies hereinafter collectively referred to as "Subsidiaries") Shenzhen Investment Holdings shall maintain a neutral position as the controlling shareholder to ensure that the listed companies and all subsidiaries can participate in market competition in accordance with the principle of fair competition when there are circumstances involving dispute resolution and other situations that have a significant impact on the business. 2.Solutions to horizontal competition of Shenzhen Special Economic Zone Real Estate & Properties: Shenzhen Special Economic Zone Real Estate & Properties was suspended since September 14 2016 due to the planning of major asset restructuring.According to the Verification Opinions on the Extension of Resumption of Trading of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Major Assets Restructuring issued by CITIC Securities Co. Ltd. and Huatai United Securities Co. Ltd. respectively on November 26 2016 the restructuring plan is that Shenzhen Special Economic Zone Real Estate & Properties intends to purchase 100% equity of Evergrande Real Estate Group Co. Ltd. by issuing A shares and/or paying cash (hereinafter referred to as "Shenzhen Special Economic Zone Real Estate & Properties Restructuring"). After the completion of Shenzhen Special Economic Zone Real Estate & Properties Restructuring Guangzhou Kailong Real Estate Co. Ltd. will become the controlling shareholder of Shenzhen Special Economic Zone Real Estate & Properties. If the restructuring of Shenzhen Special Economic Zone Real Estate & Properties is completed successfully Shenzhen Investment Holdings will lose the right of control of Shenzhen Special Economic Zone Real Estate & Properties and the horizontal competition issue between Shenzhen Special Economic Zone Real Estate & Properties and SZPRD will be resolved. If the current restructuring of Shenzhen Special Economic Zone Real Estate & Properties is terminated for any reason then for Shenzhen Special Economic Zone Real Estate & Properties' businesses that compete with the listed company Shenzhen Investment Holdings will within the scope permitted by laws and regulations initiate a reasonable solution to resolve horizontal competitions within 12 months from the date the restructuring is terminated and trading resumes (taking into account actual conditions at that time) and will fulfill its disclosure obligations in a timely manner. Shenzhen Investment Holdings will complete implementation of this plan within 3 years from the date the restructuring is terminated and trading resumes thereby resolving any competition issues between SZPRD and Shenzhen Special Economic Zone Real Estate & Properties. 3. Other commitments to avoid horizontal competition: during the period when it is the controlling shareholder of a listed company and the listed company is listed on the Shenzhen Stock Exchange other Affiliated Companies of Shenzhen Investment Holdings will not engage in related business with direct horizontal competition relationship with the listed company in new business areas other than the business areas with horizontal competition relationship that have already occurred. Shenzhen Investment Holdings undertakes not to seek improper benefits as the controlling shareholder of the listed company thus harming the rights and interests of the listed company and its shareholders. In case of any violation of the above commitments Shenzhen Investment Holdings will bear corresponding legal liabilities including but not limited to the liability for compensation for all losses caused to the listed company. 3 Since making the relevant commitments Shenzhen Investment Holdings has been actively committed to fulfilling its commitments. During the commitment period Shenzhen Investment Holdings did not seek improper benefits as the controlling shareholder of SZPRD which damaged the rights and interests of SZPRD and its shareholders. During the commitment period Shenzhen Investment Holdings actively sorted out the relevant assets and business of Shenzhen Urban Construction and was committed to formulating a feasible solution to the horizontal competition with SZPRD as soon as possible. Shenzhen Investment Holdings also actively promoted the restructuring of Shenzhen Special Economic Zone Real Estate & Properties. However 462024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. considering the objective circumstances Shenzhen Investment Holdings has not been able to fulfill its original commitment to avoid horizontal competitions. Shenzhen Investment Holdings has reissued the Letter on Changing the Commitments on Avoiding Horizontal Competition on September 26 2024 and the change of the commitment has been approved by the Company's Second Extraordinary General Meeting of Shareholders of 2024 held on October 18 2024. For details please refer to the Announcement on the Resolution of the Second Extraordinary General Meeting in 2024 (Announcement No.: 2024-47) disclosed by the Company on Cninfo on October 19 2024.IV. Annual general meeting and extraordinary general meeting held during the reporting period 1. General meetings during the reporting period Investor Date of Date of Session Meeting type Resolutions made at the meeting attendance ratio meeting disclosure The meeting reviewed and approved the "2023 Report on the Work of the Board of Directors" "2023 Report on the Work of the Board of Supervisors" "2023 Annual Report and Summary" "2023 Financial Final Accounts Report" "2024 Financial Budget Report" "Proposal on Profit 2023 Annual Annual Distribution and Conversion of General general 60.52% April 19 2024 April 20 2024 Capital Reserve into Share Capital Meeting meeting in 2023" "Proposal on Comprehensive Credit Financing Quota in 2024" and "Proposal on Estimated Related Party Transactions in 2024". For details please refer to the "Announcement on the Resolution of the 2023 General Meeting of Shareholders" (No. 2024-16) on Cninfo.The meeting reviewed and approved the Proposal on Providing Guarantee for the Subsidiary to The First Extraordinary Apply for Facility Amount from the Extraordinary general 60.51% June 20 2024 June 21 2024 Bank as detailed in the General meeting Announcement of the First Meeting in 2024 Extraordinary General Meeting of Shareholders in 2024 (No. 2024-26) on Cninfo.The meeting reviewed and approved the "Proposal on The Second Amending the Articles of Extraordinary Extraordinary October 18 October 19 Association" "Proposal on general 61.46% General 2024 2024 Investment Matters of the meeting Meeting in 2024 Upgrading and Renovation Project of ITC Shopping Mall" "Proposal on the Application of the Company's Controlling Shareholder 472024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. for Change of Commitments on Avoiding Horizontal Competitions" and "Proposal on the Proposed Appointment of the Company's Independent Directors". For details please refer to the "Announcement of the Second Extraordinary General Meeting of Shareholders in 2024" (No. 2024-47) on Cninfo. The meeting reviewed and approved the Proposal on Changing The Third Extraordinary the Accounting Firm which is Extraordinary November 15 November 16 general 60.55% detailed in the Announcement on General 2024 2024 meeting the Third Extraordinary Meeting in 2024 Shareholders' Meeting in 2024 (No. 2024-55) on Cninfo. 2. The preferred shareholders whose voting rights have been restored requested to convene an extraordinary general meeting.□Applicable □Not applicable V. Directors supervisors and senior officers 1. Basic information Numb Numb Numb Num er of er of er of ber of Othe shares shares shares r share Reaso held at increa reduce incre s held ns for Employ Beginni Ending increa Gend Ag the sed d in ase/d at the Name Position ment ng date date of beginn the the end se or er e ecrea status of term term ing of curren curren of the decre se the t t perio ase in (shar period period period d share es) (share (share (share (shar s) s) s) es) Secretary of Liu the Party Shengxi Resigne June 15 SeptemberMale 53 Committee d 2018 26 2024 ang and Chairman Director Deputy Secretary of Wang Incumbe June 15 September Male 58 the Party Hangjun nt 2018 26 2024 Committee and General Manager Director Deputy Zhang Incumbe June 29 September Zhimin Male 47 Secretary of nt 2022 26 2024 the Party Committee 482024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Shen Fem Director and Resigne June 15 September 55 Finance Xueying ale d 2018 26 2024 Director Wang Incumbe June 15 September Male 53 Director Ge nt 2018 26 2024 Xie Incumbe April 7 September Male 52 Director Chang nt 2020 26 2024 Mei Independent Resigne June 15 September Yongho Male 60 director d 2018 26 2024 ng Li Independent Incumbe Septemb September Donghu Male 52 er 27 director nt 26 2024 i 2021 Septemb Hu Fem Independent Incumbe September 42 er 27 Caimei ale director nt 26 2024 2021 Song Independent Incumbe October Male 61 Shaohua director nt 18 2024 Chairman of Ma Incumbe July 21 September Hongtao Male 56 the Board of nt 2022 26 2024 Supervisors Zhang Incumbe Septemb September Male 49 Supervisor er 26 Manhua nt 26 2024 2014 Li Male 42 Supervisor Incumbe June 15 September Qinghua nt 2018 26 2024 Employee supervisor executive director and secretary of Decemb Wang Fem the Party Incumbe er 1 September Qiuping ale 54 Committee nt 26 20242007 of International Trade Technology Park Employee supervisor director of the discipline inspection and Gu Fem Incumbe June 15 September Weimin ale 43 supervision nt 2018 26 2024 office and deputy secretary of the discipline inspection committee Member of Party Decemb Chen Committee Incumbe er 28 September Hongji Male 56 and Deputy nt 26 20242020 General Manager 492024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Member of Party Fem Committee Incumbe June 15 September Cai Lili 52 ale and Deputy nt 2018 26 2024 General Manager Member of Party Committee Incumbe June 15 September Li Peng Male 48 and Deputy nt 2018 26 2024 General Manager Member of the Party Committee Deputy Zhang Incumbe June 15 September Gejian Male 49 General nt 2018 26 2024 Manager Secretary of the Board of Directors Ni Deputy Fem Incumbe October Huichua 51 General ale nt 30 2024 n Manager Total -- -- -- -- -- -- 0 0 0 0 0 -- Notes: 1 The 10th Board of Directors and Board of Supervisors of the Company expired on September 26 2024. In view of the fact that the new Board of Directors and Board of Supervisors are still under active preparation in order to ensure the continuity and stability of the work of the Board and the Board of Supervisors the re-election of the Board of Directors and the Board of Supervisors will be postponed and the term of office of the special committees and senior officers of the Board of Directors will be postponed accordingly. For details please refer to the Company's Announcement on Postponement on the Postponement of the Re-election of the Board and the Board of Supervisors (No. 2024-36) disclosed on Cninfo.Whether there were any resignations of directors and supervisors or dismissals of senior officers during the reporting period □Yes □No Due to Mr. Mei Yonghong's consecutive service as an independent director of the Company for 6 years he applied for resignation from the post of independent director and the relevant special committees of the Board of Directors in accordance with the Administrative Measures for Listed Company Independent Directors of the China Securities Regulatory Commission and other laws and regulations and the provisions of the Articles of Association on the term of office of independent directors (see the Company Announcement No. 2024-35 for details).Changes in directors supervisors and senior officers of the Company □Applicable □Not applicable Name Position Type Date Reasons Secretary of the Party Liu Shengxiang Committee and Resigned January 23 2025 Personal reasons Chairman Director and Finance Shen Xueying Resigned January 23 2025 Retired Director Resignation upon Mei Yonghong Independent director October 18 2024 Change of term expiration of term Ni Huichuan Deputy General Employment October 30 2024 Job transfer 502024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Manager Song Shaohua Independent director Employment October 18 2024 Change of term 2. Office holding Professional background main work experience and current main responsibilities of the current directors supervisors and senior officers of the Company Members of the Board: Mr. Wang Hangjun was born in November 1966. He is a member of the Communist Party of China has a postgraduate degree a master's degree in economics and is a senior auditor. Mr. Wang Hangjun once served as the Deputy Chief of Audit Bureau of Nanshan District Shenzhen; Deputy Director and Director of Audit Department of Shenzhen Investment Management Company; Deputy Director and Director of Supervision Department of Shenzhen Investment Management Company; Director of the Audit and Supervision Department of Shenzhen Investment Holdings Co. Ltd.; He joined the Company as Deputy General Manager in October 2007 and is currently the Company's Director Deputy Secretary of the Party Committee and General Manager.Mr. Zhang Zhimin was born in October 1977. He is a member of the Communist Party of China and holds a master's degree. Mr.Zhang Zhimin joined the State-owned Assets Supervision and Administration Commission of the People's Government of Shenzhen Municipality in 2016 and has served as the office (letter and visit room) director the office (party committee) director the office (party committee) deputy researcher the office level 4 investigator and the office (party committee) level 3 investigator.He has been serving as the Deputy Secretary of the Party Committee of the Company since May 2022 and as the Director Deputy Secretary of the Party Committee and Chairman of the Labor Union of the Company since June 2022.Mr. Wang Ge was born in October 1971. He is a member of the Communist Party of China a senior engineer and has a bachelor's degree in engineering. Mr. Wang Ge has been engaged in enterprise management for many years. He has served as deputy director and director of the Engineering Department of Shenzhen Jian'an (Group) Co. Ltd. manager of Jian'an Group Construction and Municipal Company deputy secretary of the branch deputy general manager of Jian'an Group director deputy secretary of the Party Committee general manager etc. Since March 2017 he has been the chief engineer of Shenzhen Investment Holdings Co. Ltd.Mr. Xie Chang was born in November 1971. He is a member of the Communist Party of China a bachelor of engineering a senior engineer an economist and a party affairs specialist. Mr. Xie Chang served as the Minister of the Party-Masses Work Department the Commission for Discipline Inspection and the Minister of the Asset Management Department of Shenzhen Jian'an (Group) Co. Ltd.; Deputy General Manager of Shenzhen Saibainuo Gene Technology Co. Ltd.; Director of the Operation Management Department Director of the Office and Secretary of the Board of Directors of Shenzhen Foreign Labor Service Co.Ltd.; Director of the Office of Shenzhen Talent Exchange Service Center Co. Ltd. Since September 2017 he has served as the Minister of the General Management Department of Shenzhen Investment Holdings Co. Ltd. and since April 2020 he has served as the director of the Company.Mr. Li Donghui was born in June 1972 holds a bachelor's degree in Auditing from the School of Economics of Wuhan University and a doctorate degree in Finance and Banking from the School of Business of the University of New South Wales Australia. He once served as a civil servant of the Financial Department of the National Audit Office of the People's Republic of China Executive Dean of the School of Management of Jinan University and currently serves as a distinguished professor of finance doctoral supervisor and is currently director of the professor committee of the School of Economics of Shenzhen University. He has published articles in top international journals and China's national key authoritative academic journals. He has been named a high-level overseas "Peacock Plan" talent in Shenzhen an expert of the Senior Title Evaluation Committee of Finance Bureau of Shenzhen Municipality an expert of Shenzhen Press Group Shenzhen Communication Think Tank and a reviewer of the National Natural Science Foundation of China. 512024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Ms. Hu Caimei was born in 1982. She holds a PhD in Management is a postdoctoral fellow in Economics a senior researcher at the full-professor level and a reserve-level talent in Shenzhen. She is currently the director of the Institute of Financial Development and State-owned Assets and Enterprises of China Development Institute. She has long been engaged in policy research and consulting in the fields of local finance and state-owned assets and enterprises and has rich experience in consulting on the reform and development of state-owned assets and state-owned enterprises. She has presided over and participated in a number of national provincial and ministerial scientific research projects as well as more than 50 consulting projects and her research results have been adopted by government departments and rewarded with scientific research awards for many times.Mr. Song Shaohua was born in March 1963. He holds a Bachelor of Laws and a Bachelor of Economics from Wuhan University and a Doctor of Economics from the Graduate School of the Chinese Academy of Social Sciences. From 2006 to 2007 he served as a director of Shenzhen Huafu Electronics Co. Ltd. From 2007 to 2012 he served as a director and deputy general manager of Hong Kong Polyda International Co. Ltd. From 2014 to 2016 he served as a director and general manager of Shenzhen Longhao Nanfang Investment Management Co. Ltd. From 2016 to 2018 he served as a director and deputy general manager of Hong Kong Polyda International Co. Ltd. From August 2016 to now he has served as the executive director of Shenzhen Laocha Investment Co. Ltd. From November 2023 to now he has served as an independent director of Shenzhen Jiejiawei Innovation Energy Equipment Co. Ltd.Members of the Board of Supervisors: Mr. Ma Hongtao was born in October 1968. He holds a master's degree and is a member of the Communist Party of China. From 1991 to 2000 he served as the Chief of Cashier Audit and Credit Section and Deputy Director of Office of Taiyuan Branch of Bank of China; from 2000 to 2004 he served as the branch manager and department general manager of Taiyuan Branch of Minsheng Bank; from 2004 to 2016 he served as the business supervisor and general manager of the division of the Head Office of Minsheng Bank; from 2016 to 2019 he pursued further studies and volunteered as a teacher in mountainous areas from 2019 to 2020 he served as the Deputy General Manager and Capital Director of the Finance Department of Clou Electronics Co. Ltd.; From 2020 to 2022 he served as the General Manager of the Office of Vanho Securities Co. Ltd.; He has served as Chairman of the Board of Supervisors of the Company since July 2022.Mr. Zhang Manhua born in February 1975 is a master’s degree holder and a member of the Communist Party of China.From 1992 to 2004 he studied and worked at Central South University. from 2004 to 2013 he served as Senior Manager of Investment and Development Center of Konka Group Co. Ltd. Secretary of the Board of Directors of Shenzhen Julong Optoelectronics Co. Ltd. and Minister of Investment Department of Shenzhen Chao Technology Investment Co. Ltd.; From 2013 to 2018 he served as Deputy Director of the Strategy Development Department of Shenzhen Investment Holdings Co. Ltd. Since 2018 he has served as Director of the Legal and Risk Management Department of Shenzhen Investment Holdings Co. Ltd. Mr. Li Qinghua born in April 1982 holds a bachelor's degree. From 2003 to 2013 he served as the Project Assistant Project Manager and Senior Manager of Shenzhen Dezhengxin International Assets Appraisal Co. Ltd.; from 2013 to 2017 he served as Senior Supervisor of the Equity Management and Legal Affairs Department at Shenzhen Investment Holdings Co. Ltd. Since 2017 he has served as Deputy Director of the Audit Department. Ms. Wang Qiuping was born in January 1970. She has a bachelor's degree is a member of the Communist Party of China and is a senior economist. From 1992 to 2015 she was engaged in management work in the Company's general manager's office finance department operation management department and development management department. From 2015 to 2018 she served as the Party Secretary Deputy General Manager and Chairman of the Trade Union of Shenzhen International Trade Center Property Management. From 2018 to 2020 she served as the Party Secretary and General Manager of Shenzhen International Trade Center Property Management. From 2020 to August 2021 she served as the Party Secretary Executive Director and General Manager of Shenzhen International Trade Science and Technology Park. She is currently the Party Secretary and Executive Director of Shenzhen International Trade Science and Technology Park.Ms. Gu Weimin was born in October 1981. She holds a master's degree and is a member of the Communist Party of China. From 2007 to 2010 she worked in the Shenzhen branch of KPMG Hua Zhen accounting firm as an external auditor; Since 2011 she has 522024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. been engaged in audit work in the Audit Department (Office of the Board of Supervisors) of the Company. Currently she serves as the Deputy Secretary of the Commission for Discipline Inspection and the Director of the Disciplinary Inspection Office (Audit Department Office of the Board of Supervisors) of the Company.Senior officers: Mr. Wang Hangjun was born in November 1966. He is a member of the Communist Party of China has a postgraduate degree a master's degree in economics and is a senior auditor. Mr. Wang Hangjun once served as the Deputy Chief of Audit Bureau of Nanshan District Shenzhen; Deputy Director and Director of Audit Department of Shenzhen Investment Management Company; Deputy Director and Director of Supervision Department of Shenzhen Investment Management Company; Director of the Audit and Supervision Department of Shenzhen Investment Holdings Co. Ltd.; He joined the Company as Deputy General Manager in October 2007 and is currently the Company's Director Deputy Secretary of the Party Committee and General Manager.Mr. Chen Hongji was born in May 1968. He is a member of the Communist Party of China has a postgraduate degree and a Master of Philosophy. Mr. Chen Hongji has worked in Shenzhen Municipal Government for many years joined Shenzhen Construction Investment Holding Company in January 1998 and has successively served as the section chief of the Development Research Department deputy director of the Office deputy director of the Party Committee Office and director of the Secretary Office of the Board of Directors. He joined Shenzhen Investment Holdings Co. Ltd. in October 2004 and served as Director of the Party and Masses Work Department and Director of the Office of the Board. Since July 2012 he has served as the Deputy General Manager of Shenzhen Urban Construction and Development (Group) Co. Ltd. Since December 2020 he has served as the Company's Party Committee member and Deputy General Manager.Ms. Cai Lili was born in November 1972. She is a member of the Communist Party of China has a bachelor's degree and a master's degree in economics. She has worked in the State Taxation Administration of Shenzhen since 1995. She was the deputy director of the collection and management and science and technology development department of the State Taxation Administration of Shenzhen and a member of the party group and deputy director of the Local Taxation Bureau of Futian District of Shenzhen. She is currently a member of the party committee deputy general manager and Chief Financial Officer of the Company.Mr. Li Peng was born in May 1976. He is a member of the Communist Party of China has a bachelor's degree in engineering and is an intermediate economist. Since July 1999 he has been working in the Company's operational management. He served successively as Deputy Director of the Development Management Department Manager of the Cost Control Department Party Branch Secretary and Deputy General Manager of Shenzhen Huangcheng Real Estate Co. Ltd. He currently serves as a member of the Party Committee and Deputy General Manager of the Company.Mr. Zhang Gejian was born in September 1975. He is a member of the Communist Party of China has a master's degree a master's degree in business administration and is an accountant and auditor. He was engaged in internal audit work in the Audit Department of the Company since July 1997; he has served as the manager of the Audit Department the supervisor and the manager of the Cost Control Department of the Company and is currently a member of the Party Committee the Deputy General Manager and the Secretary of the Board of Directors of the Company.Ms. Ni Huichuan was born in May 1973. She is a member of the Communist Party of China has a postgraduate degree and holds a master's degree in engineering. Ms. NI Huichuan worked for many years in Shenzhen's government departments previously serving in the Urban Renewal Section of the Second Direct Management Bureau under the Shenzhen Municipal Planning and Land Resources Commission in the Urban Design Office of the Shenzhen Municipal Planning and Land Resources Commission and in the Longhua Management Bureau of the Shenzhen Municipal Planning and Land Resources Commission. From October 2017 to December 2022 she served as a consultant of Hong Kong Lucky Holdings Limited. She has served as the Deputy General Manager of the Company since October 2024.Positions held in shareholders □Applicable □Not applicable Name of the Name of shareholder Positions held in Beginning date Ending Whether to receive 532024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. appointed shareholders of term date of remuneration personnel term allowance from the shareholder unit Shenzhen Investment Wang Ge Chief Engineer March 1 2017 Yes Holdings Co. Ltd.Shenzhen Investment Director of General Xie Chang April 7 2020 Yes Holdings Co. Ltd. Management Department Shenzhen Investment Head of the Legal and Risk Zhang Manhua January 1 2017 Yes Holdings Co. Ltd. Management Department Shenzhen Investment Deputy Head of Audit Li Qinghua January 1 2017 Yes Holdings Co. Ltd. Department Description of the In addition to the above-mentioned main positions in the shareholder units directors Wang Ge and Xie positions held in Chang and Supervisors Zhang Manhua and Li Qinghua also serve as directors or supervisors in several non- shareholders listed subsidiaries or invested enterprises of the relevant shareholder units..Positions in other entities □Applicable □Not applicable Name of Whether to receive Ending the Beginning remuneration Name of other entities Positions held in other entities date of appointed date of term allowances in term personnel other entities BGI Group BGI Director and Executive Vice Agriculture Group President of BGI Group Mei September Country Garden Chairman of BGI Agriculture Yes Yonghong 1 2015 Agricultural Holdings CEO of Country Garden Limited Agricultural Holdings Limited Distinguished Professor Li Doctoral Supervisor Director of April 1 Shenzhen University Yes Donghui the Professor Committee of the 2019 School of Economics China (Shenzhen) Director of Institute of Financial Hu November Comprehensive Development and State-owned Yes Caimei 1 2016 Development Institute Assets and Enterprises Zhang Shenzhen Bay Technology December Director and General Manager No Manhua Development Co. Ltd. 19 2024 Song Shenzhen S.C New Energy November Independent director Yes Shaohua Technology Corporation 10 2023 Explanati on of serving in Not applicable other entities Penalties imposed by securities regulators on current directors supervisors and senior officers as well as those left the post in the past three years □Applicable □Not applicable 3. Remuneration of directors supervisors and senior officers Decision-making procedures determination basis and actual payment of remuneration for directors supervisors and senior officers During the reporting period the Board of Directors and the management of the Company signed the 2024 annual business target responsibility letter and adopted the evaluation method of combining economic indicators classified indicators and evaluation indicators scores and after the end of the year the Board of Directors will assess it. The remuneration of the senior officers of the Company shall be approved by the Board after the annual assessment in accordance with the Measures for the Management of 542024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Performance Assessment and Remuneration of Senior Officers of Shenzhen Properties & Resources Development (Group) Ltd.the Long-term Incentive and Restriction Plan of Shenzhen Properties & Resources Development (Group) Ltd. and other regulations.Remuneration of directors supervisors and senior officers during the reporting period Unit: RMB10000 Total pre-tax Whether get Employment compensation paid from Name Gender Age Position status received from related parties the Company of the Company Liu Secretary of the Party Male 53 Resigned 113.6 No Shengxiang Committee and Chairman Director Deputy Secretary Wang Male 58 of the Party Committee and Incumbent 107.95 No Hangjun General Manager Zhang Director Deputy Secretary Male 47 Incumbent 96.65 No Zhimin of the Party Committee Shen Director and Finance Female 55 Resigned 92.33 No Xueying Director Wang Ge Male 53 Director Incumbent 0 Yes Xie Chang Male 52 Director Incumbent 0 Yes Mei Male 60 Independent director Resigned 6.66 Yes Yonghong Li Donghui Male 52 Independent director Incumbent 8 No Hu Caimei Female 42 Independent director Incumbent 8 No Song Male 61 Independent director Incumbent 1.33 No Shaohua Chairman of the Board of Ma Hongtao Male 56 Incumbent 108.22 No Supervisors Zhang Male 48 Supervisor Incumbent 0 Yes Manhua Li Qinghua Male 42 Supervisor Incumbent 0 Yes Employee supervisor executive director and Wang Female 54 secretary of the Party Incumbent 64.94 No Qiuping Committee of International Trade Technology Park Employee supervisor director of the discipline inspection and supervision Gu Weimin Female 43 Incumbent 49.26 No office and deputy secretary of the discipline inspection committee Member of Party Chen Male 56 Committee and Deputy Incumbent 96.65 No Hongji General Manager Member of Party Cai Lili Female 52 Committee and Deputy Incumbent 96.65 No General Manager Member of Party Li Peng Male 48 Committee and Deputy Incumbent 96.65 No General Manager 552024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Member of the Party Zhang Committee Deputy General Male 49 Incumbent 96.65 No Gejian Manager Secretary of the Board of Directors Ni Female 51 Deputy General Manager Incumbent 30.3 No Huichuan Total -- -- -- -- 1073.841 -- Notes: 1. remuneration: (1) the remuneration in the above table does not include the long-term incentive bonus deferred to 2024: the deferred long-term incentive bonus received by Liu Shengxiang Wang Hangjun Chen Hongji Cai Lili Li Peng and Zhang Gejian in 2024 was RMB 265200 RMB 251900 RMB 71000 RMB 192400 RMB197300 and RMB 174000 respectively. (2) Since the assessment in 2024 has not been completed the data in the above table are estimated according to relevant rules and the actual amount issued shall prevail.Other circumstances □Applicable □ Not applicable VI. Directors' performance of duties during the reporting period 1. Board of Directors during the reporting period Date of Session Date of meeting Resolutions made at the meeting disclosure The "Proposal on Amending the Regulations on the Work of the Strategic Development and Investment Decision-Making Committee of the Board of Directors and Other Corporate The 23rd Meeting of the February 3 February 2 2024 Governance Systems" and the "Proposal on Formulating the 10th Board of Directors 2024 Detailed Rules for the Work of the Secretary of the Board of Directors and Other Corporate Governance Systems" were deliberated and approved.The "Proposal on Signing the Performance Target The 24th Meeting of the March 18 2024 / Responsibility Letter of Senior Officers in 2024" was 10th Board of Directors deliberated and approved The Board of Directors reviewed and approved the "2023 Annual Report of the Board of Directors" "2023 Annual Report and Summary" "2023 Financial Final Accounts Report" "2024 Financial Budget Report" "Proposal on Provision and Reduction of Various Provision for Asset Impairment" "Proposal on 2023 Profit Distribution and Conversion of Capital Reserve into Share Capital" "Proposal on 2024 Comprehensive Credit Financing Quota" "Proposal The 25th Meeting of the on 2024 Business Plan and Investment Budget" "Proposal March 29 2024 March 30 2024 10th Board of Directors on Estimated Daily Related Party Transactions in 2024" "2023 Self-Evaluation Report on Internal Control" "2023 Social Responsibility Report" "Special Evaluation Opinions of the Board of Directors on the Independence of Independent Directors" "Proposal on the Evaluation Report of the Audit and Risk Management Committee on the Performance of Accounting Firm and the Report on the Performance of Supervisory Duties" and "Proposal on the Convening of the 2023 Annual General Meeting" Reviewed and approved the Company's 2024 First Quarterly The 26th Meeting of the April 26 2024 April 27 2024 Report 2023 Internal Control System Report and 2024 10th Board of Directors Enterprise-wide Major Risk Assessment Report 562024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. The meeting reviewed and approved the "Proposal on The 27th Meeting of the Providing Guarantee for Subsidiary to Apply for Facility June 4 2024 June 5 2024 10th Board of Directors Amount from Banks" and "Proposal on Convening the First Extraordinary General Meeting in 2024" The 28th Meeting of the The Company's 2024 Semi-annual Report and its Summary August 27 2024 August 28 2024 10th Board of Directors were reviewed and approved The following proposals were deliberated and approved: Proposal on Amending the Articles of Association Proposal on Investment Matters of the Upgrading and Renovation Project of ITC Shopping Mall Proposal on the Application The 29th Meeting of the September 30 October 1 2024 of the Company's Controlling Shareholder for Changes in 10th Board of Directors 2024 Commitments on Avoiding Horizontal Competitions Proposal on the Appointment of the Company's Independent Directors and Proposal on the Convening of the Second Extraordinary General Meeting of Shareholders in 2024.Reviewed and approved the Company's Third Quarter 2024 Report the Proposal on Changing the Accounting Firm the Proposal on Appointing the Company's Deputy General The 30th Meeting of the October 31 Manager the Proposal on Formulating the Implementation October 30 2024 10th Board of Directors 2024 Plan for the Construction of Compliance Management System the Proposal on Formulating the Compliance Management Measures and the Proposal on Convening the Third Extraordinary Shareholders' Meeting in 2024 2. Attendance of directors at the board meeting and the general meeting Attendance of directors at the board meeting and general meeting Whether to Number of Number of fail to attend the board Number of Number of Number of the board the meeting Number of meetings to the board the board absences Name of meetings of the Board general be attended meetings meetings from the director attended by in person for meetings during this attended on attended by board communicati two attended reporting site proxy meetings on consecutive period times Liu 8 1 7 0 0 No 4 Shengxiang Wang 8 1 7 0 0 No 4 Hangjun Shen 8 1 7 0 0 No 4 Xueying Wang Ge 8 0 8 0 0 No 4 Xie Chang 8 1 7 0 0 No 4 Mei 7 1 6 0 0 No 3 Yonghong Li Donghui 8 1 7 0 0 No 4 Hu Caimei 8 1 7 0 0 No 4 Zhang 8 1 7 0 0 No 4 Zhimin Song 1 0 1 0 0 No 1 Shaohua Description of the failure to attend the board meetings in person for two consecutive times Not applicable 572024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. 3. Objections raised by directors to relevant matters of the Company Whether the directors have raised any objections to relevant matters of the Company □Yes □No During the reporting period the directors did not raise any objection to the relevant matters of the Company. 4. Other descriptions of directors' performance of duties Whether the relevant suggestions of the directors to the Company have been adopted □Yes □No Director's statement on the adoption or non-adoption of the Company's relevant proposals During the reporting period the directors of the Company actively attended the meetings of the Board of Directors and the Shareholders' Meeting in strict accordance with the Articles of Association the Rules of Procedures of the Board of Directors and relevant laws and regulations and diligently and dutifully put forward relevant opinions on the Company's major governance and business decisions according to the Company's actual situation. After full communication and discussion a consensus was reached and the implementation of the resolutions of the Board of Directors was resolutely supervised and promoted to ensure that the decisions were scientific timely and efficient and the legitimate rights and interests of the Company and all shareholders were safeguarded.VII. Information on special committees under the Board during the reporting period Import ant Nu opinio mbe ns and Other Details of Name of r of Membership Date of meeting Content of the meeting sugges performance objections committee meet tions of duties (if any) ings put held forwar d Hu Caimei Mei To study the Yonghong Li Review the Proposal on the assessment Donghui Xie May 23 2024 Performance Evaluation Results of Agree standards Chang Shen the Group Company in 2023 salary Xueying policies and plans of the 1. Deliberated the 2023 Group directors Senior Officers Business and senior Remunera Performance Assessment Plan; officers of tion and 2. Reviewed the 2023 Personal the Evaluatio 2 Debriefing Report of the senior Company n Hu Caimei Li officers of SZPRD; supervise Committe Donghui Xie 3. Reviewed the Completion Form the e Chang Shen November 26 2024 of Annual Performance Targets of Agree performance Xueying Song Senior Officers of SZPRD; of duties of Shaohua 4. Review the additional items and the directors rejected items of the 2023 senior and senior management assessment; officers of 5. Review the list of senior the management assessment scorers in Company 2023. conduct 582024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. annual performance assessment of the directors and senior officers of the Company and make suggestions etc. 1. Review the Company's 2023 Audit Work Report and 2024 Audit Work Plan; 2. Deliberate the "Inspection Report on the Company's Provision of Guarantee Related Party Transactions and Other Matters in The 2023"; committee 3. Review the Company's 2023 supervise Annual Financial and Accounting March 29 2024 Agree the external Report and 2023 annual report; audit agency 4. Deliberate the 2023 Internal and the Control Self-Evaluation Report of internal the Company; audit work 5. Deliberated the Proposal on the of the Evaluation Report of the Audit and Company Risk Management Committee on supervise the Performance of Accounting the Firm and the Report on the implementat Audit Performance of Supervisory Duties ion of the Risk and 1. Review the First Quarterly Company's Li Donghui Hu Complian Report of 2024; internal Caimei Mei ce 2. Review the Internal Control control Yonghong Liu 5 Managem System Report for 2023; system and Shengxiang Xie April 26 2024 Agree ent 3. To review the 2024 Enterprise coordinate Chang Committe Major Risk Assessment Report; the e 4. Review the Report on Audit communicat Work in the First Quarter of 2024. ion between 1. Deliberate the Report on the the Work Progress of the Annual Audit managemen Accounting Firm 2024-2027 t the July 5 2024 Agree Selected by Shenzhen Properties & internal Resources Development (Group) audit Ltd. through Public Bidding. department 1. Review the Company's 2024 and relevant Semi-annual Report and its departments Summary; with the 2. Review the Report on Audit external Work in the Second Quarter of audit 2024; agency. August 27 2024 Agree 3. Review the "Inspection Report on Provision of Guarantee Related Party Transactions and Other Matters in First Half of 2024"; 4. Review the Report on the Progress of the Public Bidding for 592024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. the Selection and Employment of the Annual Audit Accounting Firm in 2024-2027. 1. Review the Company's third Li Donghui Hu quarterly report of 2024; Caimei Liu 2. Review the Report on Audit Shengxiang Xie October 30 2024 Agree Work in the Third Quarter of 2024; Chang Song 3. Deliberated on the proposal on Shaohua changing the accounting firm.Hu Caimei Mei Deliberated the proposal on the The Yonghong Li March 29 2024 estimated daily related party Agree independent Donghui transactions in 2024 directors listened to the reports of the managemen t and the financial principal of the Company on the Company's Special production meeting of and independe 2 Proposal regarding the amendment nt Hu Caimei Mei operation of commitments on avoiding directors Yonghong Li September 30 2024 Agree standardized horizontal competitions by the Donghui operation controlling shareholder. and financial affairs in the current year and the progress of major matters such as investment and financing activities.Strategic Developm LIU ent and Shengxiang Investmen Wang Hangjun t ZHANG 0 Decision- Zhimin WANG Making Ge SHEN Committe Xueying e The Nomination ZHANG Nominatio Committee Zhimin WANG n conducted a Ge HU Caimei 0 Committe thorough LI Donghui e review on SONG Shaohua the qualification 602024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. s of Mr.SONG Shaohua the proposed Independent Director and Ms. NI Huichuan the candidate for Deputy General Manager and issued their review opinions.VIII. Work of the Board of Supervisors Whether the Company has risks found by the Board of Supervisors during the supervision activities in the reporting period □Yes □No The Board of Supervisors has no objection to the supervision matters during the reporting period.IX. Employees of the Company 1. Number professional composition and education level of employees Number of employees of the parent company at the end of the 98 reporting period Number of in-service employees of major subsidiaries at the 8866 end of the reporting period Total number of in-service employees at the end of the 8964 reporting period Total number of employees receiving salaries in the current 8964 period Number of retired employees whose expenses shall be borne by 0 the parent company and major subsidiaries Professional composition Professional composition category Number of employees of each category Production personnel 6349 Sales personnel 45 Technical personnel 1892 Financial personnel 144 Administrative staff 493 R&D personnel 41 Total 8964 Education level Education level category Quantity 612024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. College education or above 3432 High school education or below 5532 Total 8964 2. Remuneration policy In accordance with the Group's strategic development requirements the Group Company has implemented a performance evaluation and management system for managerial members linked to the business performance of its subsidiaries further enhancing work efficiency and fostering a proactive work atmosphere. The Group headquarters strictly enforces all compensation management regulations and has revised the organizational structure design departmental functional divisions position establishment and staffing quotas as well as the compensation and performance systems of subsidiaries based on market-oriented principles. 3. Training plan In 2024 the Group Company will focus on talent development adhere to a talent-driven enterprise strategy and innovation empowerment and stimulate internal vitality. To implement the talent-driven strategy and create a dynamic cycle where talent fuels development and development nurtures talent the Group will comprehensively deepen talent development by planning the Elite Talent leadership enhancement program designing policy communication and professional skill-building activities aligned with business needs and pioneering the Internal Trainers Delivering Grassroots Training initiative to optimize internal trainer resources. These efforts aim to solidify the talent foundation for sustainable growth and achieve a virtuous cycle of mutual advancement between talent and the enterprise. 4. Outsourcing of labor services □Applicable □Not applicable X. The Company's profit distribution and conversion of capital reserves into share capital in the current year Formulation implementation or adjustment of the profit distribution policy during the reporting period especially the cash dividend policy □Applicable □Not applicable The Company is profitable during the reporting period and the profit available for distribution by the parent company is positive but no cash dividend distribution plan is proposed □Applicable □Not applicable Profit distribution and conversion of capital reserves into share capital during the reporting period □Applicable □Not applicable The Company plans not to distribute cash dividends issue bonus shares or convert capital reserves into share capital for the current fiscal year.XI. Implementation of the Company's equity incentive plan employee stock ownership plan or other employee incentive measures □Applicable □Not applicable During the reporting period the Company had no equity incentive plan employee stock ownership plan or other employee 622024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. incentive measures and their implementation.XII. Construction and implementation of internal control system during the reporting period 1. Construction and implementation of internal control In 2024 guided by both business needs and risk prevention and control the Company formulated the Compliance Management Measures and the Compliance Management System Construction Implementation Plan based on its actual conditions. These initiatives aim to promote the implementation penetration and deepening of the compliance management system across all functional departments and affiliated enterprises of the group. A 'four-in-one' integrated collaborative mechanism encompassing legal affairs compliance risk management and internal controls under a legal framework has been established. The company actively drives the deep integration of internal control compliance with business development to safeguard its high-quality growth. 2. Details of major deficiencies in internal control found during the reporting period □Yes □No XIII. The Company's management and control over its subsidiaries during the reporting period Problems Consolidation Consolidation Progress of Follow-up Company name encountered in Solutions taken plan progress solution solution plan consolidation Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable XIV. Evaluation Report on Internal Control or Audit Report on Internal Control 1. Internal control evaluation report Full-text disclosure date of the Evaluation March 29 2025 Report on Internal Control Full-text disclosure index of the Evaluation Cninfo (http://www.cninfo.com.cn) Report on Internal Control Ratio of total assets of units included in the evaluation scope to total assets in the 100.00% consolidated financial statements of the Company Ratio of operating revenue of units included in the evaluation scope to the operating 100.00% revenue of consolidated financial statements of the Company Defect identification criteria Type Financial report Non-financial report Major deficiencies: Major deficiencies: 1. Ineffective control environment; 1. Serious violations of national laws or Qualitative criteria 2. Significant fraudulent activities regulations resulting in major litigation involving the Company's directors regulatory investigations business supervisors or senior management; suspension orders criminal liability or 632024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. 3. The Company's audit firm replacement of senior officers; identified material misstatements in 2. Abnormal and significant changes in the current financial reports that the Company's directors supervisors were not detected by the internal senior management or key technical control system during its operation; personnel; 4. Corrections of material errors in 3. Absence of democratic or the Company's previously submitted scientifically flawed decision-making or disclosed financial reports; processes within the Company leading 5. Ineffective oversight of internal to major decision-making errors; controls by the Company's audit 4. Severe loss of core management or committee and internal audit technical personnel; department. 5. Frequent exposure of severely Significant deficiencies: negative news in the media with 1. Failure to select and apply widespread impact and unresolved accounting policies in accordance adverse effects; with Generally Accepted Accounting 6. Critical business operations of the Principles; Company lacking systematic controls or 2. Absence of established anti-fraud suffering from systemic failures procedures and controls; significantly impacting production and 3. No control mechanisms operations; established or implemented for 7. Major deficiencies identified in accounting treatment of non-routine internal control evaluations remaining or special transactions and absence unaddressed; of compensating controls; 8. Other significant negative 4. One or more defects in controls circumstances materially affecting the over the period-end financial Company.reporting process that cannot Significant deficiencies: reasonably assure the preparation of 1. The Company's democratic decision- financial statements achieves making processes exist but are not objectives of truthfulness and sufficiently robust adversely impacting completeness; its production and operations; 5. Failure to rectify significant or 2. Violations of the Company's internal minor deficiencies in internal regulations causing substantial losses; controls. 3. Negative media exposure significantly Minor deficiencies: impacting the Company; Other control deficiencies excluding 4. Significant deficiencies in key the aforementioned major and business systems or processes remaining significant deficiencies. unrectified; 5. Other adverse circumstances with significant impacts on the Company.Minor deficiencies: Other control deficiencies excluding the aforementioned major and significant deficiencies.Major deficiencies: Potential misstatements in operating revenue ≥ 0.5% of the Company's Major deficiencies: consolidated financial statement Direct property loss amount ≥ 0.40% of operating revenue total assets ≥ the previous year's net assets; 0.10% of the Company's Significant deficiencies: consolidated financial statement 0.20% of the previous year's net assets ≤ Quantitative criteria total assets and net assets ≥ 0.40% direct property loss amount < 0.40% of of the Company's consolidated the previous year's net assets.financial statement net assets; Minor deficiencies: Significant deficiencies: Direct property loss amount < 0.20% of 0.25% of the Company's the previous year's net assets. consolidated statements operating revenue ≤ misstatements < 0.50% of 642024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. the Company's consolidated statements operating revenue and 0.05% of the Company's consolidated statements total assets ≤ misstatements < 0.10% of the Company's consolidated statements total assets and 0.20% of the Company's consolidated statements net assets ≤ misstatements < 0.40% of the Company's consolidated statements net assets; Minor deficiencies: Misstatements in operating revenue < 0.25% of the Company's consolidated statement operating revenue total assets < 0.05% of the Company's consolidated financial statement total assets and net assets < 0.20% of the Company's consolidated financial statement net assets.Number of major deficiencies in financial 0 reports Number of major deficiencies in non- 0 financial report Number of significant deficiencies in 0 financial report Number of significant deficiencies in non- 0 financial report 2. Audit Report on Internal Control □Applicable □Not applicable Review opinion in the Audit Report on Internal Control In our opinion SZPRD has maintained effective internal control over financial reporting in all material respects in accordance with the Basic Standard for Enterprise Internal Control and relevant regulations.Disclosure of the Audit Report on Internal Control Disclosed Full-text disclosure date of the Audit Report on Internal March 29 2025 Control Full-text disclosure index of the Audit Report on Internal Cninfo (http://www.cninfo.com.cn) Control Opinion type of the Audit Report on Internal Control Standard and unqualified opinion Whether there are major deficiencies in non-financial reports No Whether the accounting firm issues an Audit Report on Internal Control with non-standard opinions □Yes □No Whether the Audit Report on Internal Control issued by the accounting firm is consistent with the opinion of the self-evaluation report of the Board of Directors □Yes □No 652024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. XV. Status of rectification of self-examination issues of special actions on governance of listed companies Not applicable. 662024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Section V Environment and Social Responsibilities I. Major environmental protection issues Whether the listed company and its subsidiaries are among the key pollutant discharge entities announced by the environmental protection department □Yes □No Administrative punishment due to environmental problems during the reporting period Impact on Name of the Corrective Reason for production and Company or Violations Punishment result measures of the punishment operation of listed subsidiaries Company companies The case involves a suspected The Lake City violation of Article Phase I Project 8.2 of the A supervisory Shenzhen Property Department was Administrative notice had been Engineering and suspected of Measures of issued in April Construction failing to fulfill its Fine RMB 20000 None Shenzhen 2024 and Supervision Co. supervisory Municipality on rectification has Ltd. responsibility for the Prevention and been completed.dust pollution Control of Fugitive control as required Dust Pollution (2022 Revision) Refer to other environmental information disclosed by key pollutant discharging units In 2024 Huangcheng Real Estate a subsidiary of SZPRD actively implemented pollution prevention treatment dust control and noise reduction measures at its ongoing projects the Dongguan Humen Harbour Palace and Shenzhen Guangming Yutang Shangfu Project to improve satisfaction among surrounding residents. The project management department rigorously fulfilled its environmental risk prevention responsibilities actively cooperated with environmental protection regulatory authorities in receiving onsite inspections strictly complied with environmental impact assessment and the Three Simultaneities requirements and standardized pollutant discharge dust suppression and noise control methods.The master plans for the ongoing Humen Harbour Palace and Guangming Yutang Shangfu Project adopted eco-friendly and pollution-controlling measures requiring that environment protection and pollution prevention facilities be simultaneously designed constructed and commissioned with the main projects. Effective measures were implemented to control and ensure compliance of all pollutants including exhaust gases wastewater solid waste industrial residues noise oil contaminants radioactive and non-radioactive pollutants from construction materials as well as other emissions.Rongyao Real Estate a subsidiary of SZPRD rigorously fulfills its primary responsibility for dust and noise pollution control at the ongoing Lake City Phase I and II Projects. The costs of dust and noise pollution prevention measures have been incorporated into project costs and the construction contracts explicitly specify the obligations of construction contractors to implement such measures. Firstly construction contractors are required to develop and implement dust and noise pollution prevention and control plans adopt effective measures install dust and noise monitoring equipment at the project site to collect data and strictly control construction-related dust and noise emissions in accordance with standards. Secondly the project strictly enforces installation of spraying systems on enclosures to effectively reduce site dust and deployment of water trucks for dust suppression when necessary ensuring strict control of dust pollution. Thirdly supervisory units must integrate dust and noise pollution prevention into daily supervision and issue rectification notices immediately upon identifying issues. Fourthly the project rigorously 672024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. implements a nighttime construction approval system and contractors must complete required procedures publicly post notices at the construction site or notify nearby residents in advance through other means before conducting nighttime construction.Wuhe Urban Renewal Company a subsidiary of SZPRD announced theTianjun Project Urban Renewal Unit Plan in January 2024.This initiative holds significant implications for urban development and improvements to residential spaces. By enhancing the area's urban image optimizing local traffic micro-circulation and elevating public service standards the project actively responds to the government's call for green development ensuring effective implementation of environmental measures to mitigate adverse impacts on the surrounding environment.The Fuyuan Project has completed the public announcement of its draft plan. The implementation of this renewal initiative holds significant implications for the preservation and appreciation of state-owned assets urban traffic and industrial development.Through the implementation of the renewal plan high-quality properties with legal property rights can be acquired achieving the preservation and appreciation of state-owned assets. By collaborating with government road initiatives traffic efficiency and convenience in the area are enhanced effectively alleviating regional traffic congestion. This further unclogs the transportation artery of Bao'an District Exhibition and Convention Center significantly improving traffic flow and accessibility in and around the convention center. The renewal initiative enables the introduction of emerging industries such as high-end manufacturing and technology-driven innovation sectors fostering the development of modern industrial parks. This not only enhances the economic efficiency and competitiveness of the industrial zone but also injects new vitality into the industrial development of Bao'an District and even Shenzhen City as a whole.Measures taken to reduce its carbon emissions during the reporting period and their effects □Applicable □Not applicable Reasons for not disclosing other environmental information The Company and its subsidiaries are not classified as key pollutant discharging units announced by the environment protection department.II. Social responsibilities (I) Fulfillment of tax obligations and distribution of stock dividends SZPRD and its subsidiaries actively fulfilled their tax obligations in 2024 completing tax payments totaling RMB 1.069 billion fully demonstrating their commitment as socially responsible corporate citizens. In accordance with the Company's Articles of Association and shareholder resolutions we adhere to the principles of fairness equity and transparency to rationally distribute profits based on the Company's earnings status and shareholders' equity. A total of RMB 185.945 million in stock dividends was distributed to shareholders safeguarding their lawful rights and interests while reinforcing investor confidence. SZPRD also places high importance on communication and engagement with shareholders regularly convening shareholder meetings to solicit and incorporate their feedback and suggestions. This practice continuously refines the corporate governance framework enhancing decision-making efficiency and transparency across the organization.(II) Addressing employment issues in 2024 SZPRD and its affiliated enterprises provided a total of 86 job positions to the public recruiting a total of 2010 employees including 14 fresh graduates and 65 veterans. The Group further optimized its talent structure emphasized talent recruitment and development and facilitated rapid growth of new employees through systematic training and career planning injecting new momentum for sustainable development.(III) Conducting employee care initiatives To uphold the people-centered development philosophy and implement the Group's support mechanism the SZPRD Party Committee organized pre-Chinese New Year care forums for employees in hardship and 'July 1st' care forums for Party members in difficulty. Prior to the pre-Chinese New Year care event for employees in hardship the Group Party Committee identified 50 hardship care recipients including 6 hardship Party members by organizing Party organizations at all levels to conduct thorough surveys verification and categorized documentation. During the 'July 1st' event 4 hardship Party members were supported. 682024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. (IV) Implementing Green and Beautiful Guangdong ecological initiatives The SZPRD Party Committee implemented the Green and Beautiful Guangdong ecological deployment requirements from provincial municipal and state-owned asset authorities.Aligning with enterprise production characteristics the Group organized over 200 participants in green activities planted nearly 3000 green plants integrated ecological civilization concepts into operations and advanced green development. (V) Organizing Love from SIHC · Supporting People's Livelihood campaign SZPRD Group and its affiliated enterprises actively responded to the 2024 Love from SIHC · Supporting People's Livelihood initiative. Through employee donations the Group raised RMB 29566 in supplies 796 clothing items and 23 sports/educational kits for schools including Zhangji Overseas Chinese Primary School Town Central Kindergarten and Guangxi Wanglu Primary School supporting rural revitalization.(VI) Launching the Red Flag Red Action public welfare blood donation volunteer activity The Party Committee of Shenzhen International Trade Center Property Management a subsidiary of SZPRD Group organized directly affiliated Party organizations directly managed enterprises local communities blood centers served communities and partnered enterprises to jointly launch the Red Flag Red Action public welfare blood donation volunteer activity. Since its inaugural launch in 2011 the blood donation activity has spanned 13 years by 2024 establishing a framework covering South China North China East China and Southwest China. By 2024 it engaged over 2800 participants with 2400 successful donors contributing 850000 milliliters of blood. In 2024 the Party Committee of Shenzhen International Trade Center Property Management conducted the Red Flag Red Action national public blood donation month campaign during June and July. According to statistics the Party Committee's affiliated units organized a total of 9 blood donation events in Shenzhen Chongqing Baoding Yangzhou Hangzhou and Hulunbuir involving 350 participants with 250 successful donors contributing a total of 104000ml of blood. Multiple companies under Shenzhen International Trade Center Property Management have been awarded letters of appreciation honorary titles and other distinctions by local municipal blood centers (or central blood stations) in their respective regions.(VII) Building the ITC Service · Refreshing as a Spring Breeze Service Quality Enhancement Year Under the leadership of its Party Committee Shenzhen International Trade Center Property Management a subsidiary of SZPRD Group launched the Service Quality Enhancement Year campaign across all levels of its property management division. Centered on the theme ITC Service · Refreshing as a Spring Breeze the campaign formulated Ten Key Initiatives and implemented a total of 4657 actions.The ITC Service · Refreshing as a Spring Breeze Service Quality Enhancement Year campaign diligently implemented the core principle of customer service with utmost sincerity enhanced the brand image of Shenzhen International Trade Center Property Management effectively improved service quality increased customer satisfaction boosted market competitiveness and ensured the strategic objective of high-quality development for the Company.(VIII) Hosting the Second Property Service Skills Competition by Shenzhen International Trade Center Property Management SZPRD's subsidiary Shenzhen International Trade Center Property Management adheres to the Party-led talent management principle focusing on talent development and enhancing employee competencies. In 2024 aligned with the core tenets of its distinctive Zhizhen ITC Party-building brand the Shenzhen International Trade Center Property Management organized its second Property Service Skills Competition. The competition expanded from Shenzhen to a national scope attracting 109 teams (327 participants) across its system. The event covered six contests in four categories: engineering customer service security management and environmental services with segments including written theoretical tests thematic speeches team practical exercises case analyses and on-site quick-response quizzes.III. Consolidation and expansion of the achievements of poverty alleviation and rural revitalization (I) Actively supporting the implementation of the Hundreds of Thousands Project SZPRD Group and its subsidiaries carried out consumption assistance initiatives in 2024 purchasing agricultural products totaling over RMB 1.6 million to support underprivileged regions. 692024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. (II) Aiding Futian District Committee's targeted poverty alleviation program SZPRD's subsidiary Huangcheng Real Estate Company responded to the Futian District Committee's call for targeted assistance. At the request of government departments such as the Futian District Development and Reform Bureau and the Poverty Alleviation Office the Company donated RMB 20000 in batches to fund the procurement of charitable supplies and public infrastructure development for rural revitalization. 702024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Section VI Important Matters I. Fulfillment of commitments 1. Commitments made by the Company's actual owner shareholders related parties acquirers the Company and other related parties that have been fulfilled within the reporting period and those that have not been fulfilled as of the end of the reporting period □Applicable □Not applicable Party making Reason Type Content Date Term Performance commitment Shenzhen Investment Holdings' wholly- owned subsidiary Shenzhen City Construction & Development (Group) Co. Ltd. and its subsidiaries held Shenzhen Special Economic Zone Real Commitments Commitments Estate & Properties on horizontal made in the Shenzhen (Group) Co. Ltd.competitions acquisition Investment engage in real estate September 6 Being carried related party 3 years report or report Holdings Co. development and 2018 out normally2 transactions on changes in Ltd. commercial housing and capital equity sales which belong to occupation the same industry as the listed company resulting in horizontal competitions. To avoid horizontal competitions Shenzhen Investment Holdings has provided commitments. 1 To reduce and Commitments standardize related Commitments on horizontal party transactions made in the Shenzhen competitions with the listed acquisition Investment September 6 In normal related party company Shenzhen Long-term report or report Holdings Co. 2018 performance transactions Investment Holdings on changes in Ltd.and capital has made the equity occupation following commitments. 3 Whether the commitment is Yes fulfilled on time Note: 1 Shenzhen Investment Holdings' wholly-owned subsidiary Shenzhen City Construction & Development (Group) Co. Ltd.and its subsidiaries held Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. engage in real estate 712024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. development and commercial housing sales which belong to the same industry as the listed company resulting in horizontal competitions. To address this Shenzhen Investment Holdings commits as follows: 1. solutions to horizontal competitions involving Shenzhen Urban Construction: during the period as the controlling shareholder of the listed company (SZPRD) and while the Company is listed on the Shenzhen Stock Exchange for Shenzhen Urban Construction's existing businesses that compete horizontally with the listed company Shenzhen Investment Holdings will to the extent permitted by laws and regulations initiate feasible solutions among the following horizontal competitions resolution plans within 12 months from the date SZPRD's equity is transferred to Shenzhen Investment Holdings and complete the implementation of such solutions within 3 years from the equity transfer date to resolve existing horizontal competitions issues: (1) Signing an asset trusteeship agreement between Shenzhen Urban Construction and the listed company entrusting assets directly competing with the listed company to SZPRD under fair trusteeship fees and taking effective measures to resolve horizontal competitions within the commitment period; (2)Injecting assets in direct competition with the listed company into the listed company; (3)Transferring assets in direct competition with the listed company to an unrelated third party; (4)Other measures that can effectively solve the problem of horizontal competition and are conducive to protecting the interests of listed companies and the legitimate rights and interests of other shareholders. Before solving the existing horizontal competition in the process of business of the listed company and the companies enterprises and economic organizations controlled or actually controlled by Shenzhen Investment Holdings (excluding the enterprises controlled by the listed companies hereinafter collectively referred to as "Subsidiaries") Shenzhen Investment Holdings shall maintain a neutral position as the controlling shareholder to ensure that the listed companies and all subsidiaries can participate in market competition in accordance with the principle of fair competition when there are circumstances involving dispute resolution and other situations that have a significant impact on the business. 2. Solutions to horizontal competitions involving Shenzhen Special Economic Zone Real Estate & Properties: On September 14 2016 Shenzhen Special Economic Zone Real Estate & Properties suspended trading due to planning a major asset restructuring. According to the Review Opinions on the Extension of Trading Suspension for Shenzhen Special Economic Zone Real Estate & Properties Major Asset Restructuring issued by CITIC Securities Co. Ltd. and Huatai United Securities Co. Ltd. on November 26 2016 the restructuring plan proposed that Shenzhen Special Economic Zone Real Estate & Properties acquire100% equity of Evergrande Real Estate Group Co. Ltd.by issuing A-shares and/or paying cash (hereinafter referred to as the restructuring of Shenzhen Special Economic Zone Real Estate & Properties). On November 9 2020 Shenzhen Special Economic Zone Real Estate & Properties announced the termination of the aforementioned transaction stating that the current market conditions were immature for advancing the major asset restructuring and that the decision aimed to safeguard the interests of the Company and all shareholders. Following the termination Shenzhen Investment Holdings remains the controlling shareholder of Shenzhen Special Economic Zone Real Estate & Properties. For Shenzhen Special Economic Zone Real Estate & Properties' existing business operations that involve horizontal competitions with the listed company Shenzhen Investment Holdings will within the scope permitted by laws and regulations initiate a reasonable solution to address the horizontal competitions within 12 months from the date of the termination of Shenzhen Special Economic Zone Real Estate & Properties' restructuring and resumption of trading based on actual conditions at the time of resumption and promptly fulfill disclosure obligations. Concurrently Shenzhen Investment Holdings will complete the implementation of such solution and resolve the horizontal competitions between SZPRD and Shenzhen Special Economic Zone Real Estate & Properties within 3 years from the date of the termination of Shenzhen Special Economic Zone Real Estate & Properties' restructuring and resumption of trading. 3. Other commitments to avoid horizontal competition: during the period when it is the controlling 722024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. shareholder of a listed company and the listed company is listed on the Shenzhen Stock Exchange other Affiliated Companies of Shenzhen Investment Holdings will not engage in related business with direct horizontal competition relationship with the listed company in new business areas other than the business areas with horizontal competition relationship that have already occurred.Shenzhen Investment Holdings undertakes not to seek improper benefits as the controlling shareholder of the listed company thus harming the rights and interests of the listed company and its shareholders. In case of any violation of the above commitments Shenzhen Investment Holdings will bear corresponding legal liabilities including but not limited to the liability for compensation for all losses caused to the listed company. 2 Shenzhen Investment Holdings has been actively dedicated to fulfilling these commitments since their initiation. During the commitment period Shenzhen Investment Holdings did not seek improper benefits as the controlling shareholder of SZPRD which damaged the rights and interests of SZPRD and its shareholders. During the commitment period Shenzhen Investment Holdings actively sorted out the relevant assets and business of Shenzhen Urban Construction and was committed to formulating a feasible solution to the horizontal competition with SZPRD as soon as possible. Shenzhen Investment Holdings also actively promoted the restructuring of Shenzhen Special Economic Zone Real Estate & Properties. However considering the objective circumstances Shenzhen Investment Holdings has not been able to fulfill its original commitment to avoid horizontal competitions.Shenzhen Investment Holdings has reissued the Letter on Changing the Commitments on Avoiding Horizontal Competition on September 26 2024 and the change of the commitment has been approved by the Company's Second Extraordinary General Meeting of Shareholders of 2024 held on October 18 2024. For details please refer to the Announcement on the Resolution of the Second Extraordinary General Meeting in 2024 (Announcement No.: 2024-47) disclosed by the Company on Cninfo on October 192024. 3 To reduce and regulate related party transactions with the listed company Shenzhen Investment Holdings commits that during its tenure as the controlling shareholder of the listed company (listed on the Shenzhen Stock Exchange): 1. Shenzhen Investment Holdings and its controlled or de facto controlled entities (including companies enterprises and economic organizations excluding subsidiaries of the listed company; collectively referred to as “Affiliated Companies”) shall strictly exercise shareholder rights and fulfill shareholder obligations in accordance with laws regulations and regulatory requirements and maintain the independence of the listed company in terms of assets financials personnel operations and organizational structure; 2. Shenzhen Investment Holdings undertakes not to leverage its position as the controlling shareholder to influence the listed company's shareholders' meetings or the board to make resolutions that could harm the lawful rights and interests of other shareholders; 3.Shenzhen Investment Holdings or its Affiliated Companies shall endeavor to minimize related party transactions with the listed company. For unavoidable related party transactions Shenzhen Investment Holdings or its Affiliated Companies shall ensure that such transactions are conducted on an arm's length and voluntary basis under fair and reasonable terms consistent with normal commercial practices and without demanding or accepting more favorable conditions from the listed company than those offered to third parties in comparable market transactions. Additionally Shenzhen Investment Holdings or its Affiliated Companies shall diligently and strictly perform all related party transaction agreements entered into with the listed company in good faith; 4.Shenzhen Investment Holdings or its Affiliated Companies shall strictly comply with the listed company's Articles of Association and applicable laws and regulations in fulfilling the decision-making procedures for related party transactions and the corresponding information disclosure obligations; 5. Shenzhen Investment Holdings or its Affiliated Companies shall ensure not to seek any special benefits beyond the aforementioned provisions through related party transactions with the listed company not to 732024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. illegally transfer the listed company's funds or profits via such transactions and not to maliciously infringe upon the lawful rights and interests of the listed company or its shareholders through related party transactions. 6. Shenzhen Investment Holdings commits to determining a reasonable solution for existing related party transactions with the listed company within the scope permitted by laws and regulations initiating such a solution within 12 months from the date of transferring the Company's shares to its ownership and fully implementing the solution within 5 years from the share transfer date to completely resolve these transactions. The specific forms include: (1) upon expiration of existing related party transaction contracts no renewal shall occur.If renewal is necessary due to the listed company's operational needs relevant decision-making procedures for related party transactions shall be strictly followed; (2) where feasible terminate existing contracts and conduct market price inquiries through market-based public bidding to identify suitable service providers for the services involved in such transactions. If related party transactions arise relevant decision-making procedures shall be strictly followed; (3) for existing active contracts with potential for price renegotiation renegotiate pricing terms to ensure post-renegotiation contract amounts align with prevailing market prices and do not exceed current contract amounts while strictly following related party transactions decision-making procedures; (4) other reasonable measures to reduce and ultimately eliminate existing non-essential related party transactions. 7. In case of any violation of the above commitments Shenzhen Investment Holdings will bear corresponding legal liabilities including but not limited to the liability for compensation for all losses caused to the listed company. 2. If there is a profit forecast for the Company's assets or projects and the reporting period is still in the profit forecast period the Company shall explain that the assets or projects have met the original profit forecast and the reasons □Applicable □Not applicable II. Non-operational occupation of funds by the controlling shareholders and other related parties of the listed company □Applicable □Not applicable During the reporting period there were no non-operational funds occupied by the controlling shareholders and other related parties for the listed company.III. Illegal external guarantees □Applicable □Not applicable The Company had no illegal external guarantee during the reporting period.IV. Explanation of the Board of Directors on the latest "modified report" □Applicable □Not applicable V. Explanation of the Board of Directors the Board of Supervisors independent directors (if any) on the "modified report" of the accounting firm during the reporting period □Applicable □Not applicable 742024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. VI. Explanation of the accounting policies changes in accounting estimates or corrections of significant accounting errors compared to the financial report of the previous year □Applicable □Not applicable During the reporting period the Company had no accounting policies changes in accounting estimates or corrections of significant accounting errors.VII. Explanation of changes in the scope of consolidated statements compared to the financial report of the previous year □Applicable □Not applicable The changes in the scope of the consolidated statements during the reporting period are detailed in IX. Changes in Consolidation Scope of Section X Financial Reports.VIII. Appointment and dismissal of the accounting firm Currently appointed accounting firm Grant Thornton Zhitong Certified Name of domestic accounting firm Public Accountants LLP Remuneration of domestic accounting firm (RMB10000) 105 Number of consecutive years of audit services provided by domestic accounting firm 0 Name of certified public accountants of the domestic accounting firm ZHAO Juanjuan ZHOU Yilan Number of consecutive years of audit services provided by certified public accountants ZHAO Juanjuan: 0 ZHOU Yilan: 0 of domestic accounting firm Whether to change the accounting firm in the current period □Yes □No Was the accounting firm changed during the audit period □Yes □No Were the approval procedures followed for the change of the accounting firm □Yes □No Detailed explanation of the change of employment and accounting firm The Company has conducted communication and explanations regarding the change of the accounting firm with both the predecessor and successor accounting firms. All parties have duly acknowledged the change and confirmed no objections. The predecessor and successor accounting firms have communicated in accordance with the provisions of China CPA Standard on Auditing 1153 Communications between Predecessor and Successor CPAs.As the audit service agreement between the Company and Baker Tilly China Certified Public Accountants expired and in accordance with the Measures for the Selection and Appointment of Accounting Firms by State-Owned Enterprises and Listed Companies (CK [2023] No. 4) Grant Thornton Zhitong Certified Public Accountants LLP was appointed as the Company's 2024 audit service provider through a public tender process to ensure the independence and objectivity of the audit work. The Audit Risk and Compliance Management Committee of the Board of Directors conducted a dedicated assessment on the change of the accounting firm. On October 30 2024 the Company convened the 30th Meeting of the 10th Board of Directors and the 25th Meeting of the 10th Board of Supervisors where the Proposal on the Change of Accounting Firm was reviewed and approved; on November 15 2024 the Company's Third Extraordinary General Meeting of Shareholders of 2024 reviewed and approved the 752024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. proposal agreeing to appoint Grant Thornton Zhitong Certified Public Accountants LLP as the Company's 2024 financial audit firm with an engagement period of one year.Engagement of internal control audit accounting firm financial adviser or sponsor □Applicable □Not applicable During the reporting period the Company engaged Grant Thornton Zhitong Certified Public Accountants LLP as its internal control audit accounting firm with total internal control audit fees paid amounting to RMB 156000 during the period.IX. Delisting after the disclosure of the annual report □Applicable □Not applicable X. Matters related to bankruptcy and reorganization □Applicable □Not applicable During the reporting period the Company had no bankruptcy restructuring related matters.XI. Significant litigation and arbitration □Applicable □Not applicable Execution Whether Amount Results and of Date Basic information estimated Disclo involved Proceedings of influence of litigation of on litigation liabilities sure (RMB10 litigation (arbitration) litigation (arbitratio disclo (arbitration) are index 000) (arbitration) trial n) sure formed judgment As Xinhai The enforcement Rongyao's violation ruling orders Xinhai of the Equity Rongyao to pay Transfer Agreement SZPRD for the Bangling compensation for Area Urban investment losses Renewal Project in totaling RMB 50 Guanlan million; Xinhai Subdistrict Rongyao has Longhua District pledged 30% of its Shenzhen has equity in Rongyao constituted a Real Estate to material breach the SZPRD as Under 5085.23 No Enforced Company is entitled collateral; Xinhai execution to claim Rongyao shall compensation for compensate SZPRD investment losses for legal fees of from Xinhai RMB 150000 Rongyao at an preservation fees of annual interest rate RMB 3000 of 11% on the funds preservation invested in the Lake insurance costs of City Project RMB 41120.84 pursuant to the and arbitration fees Agreement. of RMB Accordingly the 658188.60. 762024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Company has initiated arbitration proceedings.After the case entered On February 26 the stage of arbitrator 2019 the Company appointment and entered into the tribunal formation the Repayment Respondent filed a Agreement with lawsuit with the Rongyao Real Shenzhen Intermediate Estate Xinhai People's Court to Rongyao and determine the validity Xinhai Holdings. of the arbitration For details refer to agreement leading to the Announcement a temporary on the Signing of suspension of the the Repayment arbitration For Agreement proceedings. On details (Announcement February 26 2024 the No. 2019-9) Shenzhen Intermediate please disclosed by the People's Court issued a refer Company on ruling dismissing to the Cninfo Xinhai Holdings' Anno (http://www.cninfo. application to uncem com.cn) on invalidate the ent on February 28 2019. arbitration agreement.Major Pursuant to the Subsequently on July Arbitr Repayment 29 2024 Rongyao ation Agreement Xinhai Real Estate received of Rongyao and the Notice to Resume June Subsi Xinhai Holdings 72218.22 No Arbitration N/A N/A 9 diary acknowledged their Proceedings [Case No. 2023 (Anno obligation to repay (2023) SGZS 2970-10] uncem debts owed to from the Shenzhen ent Rongyao Real Court of International No.Estate with Xinhai Arbitration stating 2023- Investment that the Guangdong 13) Expander Property Province Shenzhen disclo Management Intermediate People's sed by Lianghong Court had rendered the the Industrial and Civil Ruling (2023) Comp Tiancheng Yue 03 MT 1308 any on Investment acting rejecting the Cninf as guarantors Respondent's request o.jointly and to invalidate the severally liable for arbitration agreement.the obligations Accordingly the under the guarantee. Arbitration Court However as the determined that the aforementioned grounds for suspension parties failed to no longer existed and fully repay the decided to resume the debts as agreed arbitration Rongyao Real proceedings. The case Estate initiated was heard by the arbitration tribunal at the proceedings. Shenzhen Court of International 772024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Arbitration on August 30 2024 and remains pending for a final award.See See Section Section Summary of other XVI.2 of See Section XVI.2 of See Section XVI.2 XVI.2 of contract litigation 9722.91 Section Section X Financial of Section X Section X disputes X Report Financial Reports Financial Financial Reports Reports XII. Punishment and rectifications □Applicable □Not applicable There was no punishment or rectification during the reporting period.XIII. Integrity status of the Company and its controlling shareholders and actual owner □Applicable □Not applicable XIV. Major related party transactions 1. Related party transactions related to daily operations □Applicable □Not applicable Pricin Amou Settle Prevai g nt of Ratio Appro Relate Type Price ment ling princi relate of ved d of Relate of Excee metho marke Relate ples d simila transa Date partie relate d relate ds d of t price Discl d of party r ction of s to d party d appro relate for osure relatio relate transa transa quota disclo the party transa party ved d simila index nship d ctions ction (RMB sure transa transa ctions transa quota party r party (RMB amou 1000 ctions ctions ctions transa transa transa 1000 nt 0) ctions ctions ctions 0) Relate The d 2024 party Shenz Wholl Forec transa hen y- ast ctions Prope Prope Prope Bay owne Anno for rty rty rty Techn d unce the mana mana mana ology subsid 7780. 4.88 6969. 7780. ment sale geme geme geme Yes Cash Devel iary 02 % 03 02 Marc on of nt nt nt opme of the h 30 Recur goods servic servic servic nt parent 2024 ring and e e e Co. comp Relate provis Ltd. any d ion of Party servic Trans es action Hebei Subsi Relate Prope Prope Prope 5612. 3.52 5612. s 4249 Yes Cash Shenb diary d rty rty rty 6 % 60 (Anno 782024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. ao of a party mana mana mana unce Invest subsid transa geme geme geme ment ment iary ctions nt nt nt No.Devel (unde for servic servic servic 2024- opme r the the e e e 09) nt parent sale engin disclo Co. comp of eering sed Ltd. any) goods servic on and e Cninf provis o ion of servic es Relate d party Shenz Wholl transa hen y- ctions Bay owne for Mana Techn d Mark Agree the geme ology subsid et d- 6238. 4.72 7276. 6238.purch nt No Cash Devel iary princi upon 28 % 18 28 ase of Servic opme of the ples price goods es nt parent and Co. comp provis Ltd. any ion of servic es Shenz Wholl hen Entru y- Shent sted owne ou Entru housi d Mark Agree Prope sted ng subsid et d- 6505. 47.88 6446. 6505.rty mana mana Yes Cash iary princi upon 85 % 58 85 Devel geme geme of the ples price opme nt nt parent nt servic comp Co. es any Ltd. 26132494 Total -- -- -- -- -- -- -- -- 6.750.79 Detailed circumstances of large- Not applicable scale sales returns Actual fulfillment (if any) during During the reporting period the Company held the annual general meeting of 2023 on the reporting period if the total April 19 2024 which considered and passed the Proposal on the Expected Daily Related amount of daily related party Party Transactions for the Year 2024 with the related shareholders had abstained fromtransactions that will occur in this voting details of connected transactions are set out in the “Related parties and related partyperiod is estimated by category transactions” in the notes to the accounting statements.Reasons for significant deviations between transaction prices and Not applicable market reference prices (if applicable) 2. Related party transactions arising from the acquisition and sale of assets or equity □Applicable □Not applicable 792024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. During the reporting period the Company had no related party transactions arising from the acquisition or sale of assets or equity. 3. Related party transactions arising from joint external investment □Applicable □Not applicable During the reporting period the Company had no related party transactions arising from joint external investment. 4. Related claims and debts □Applicable □Not applicable Existence of non-operational related party debt and credit transactions □Yes □No Receivables from related party (claims) Existence Additions Recoverie Interest in of non- Beginnin in the s in the the Ending Related Related Formatio operation g balance current current Interest current balance relationsh party n causes al funds (RMB10 period period rate period (RMB10 ip occupatio 000) (RMB10 (RMB10 (RMB10 000) n 000) 000) 000) The parent company of Xinhai Rongyao Pre- Shenzhen the acquisitio Xinhai minority No 20150 20150 n working Holdings sharehold capital ers of the subsidiary Rongyao Real Estate Shenzhen Minority Xinhai sharehold Rongyao Pre- ers of the Real acquisitio subsidiary No 33047.29 33047.29 Estate n working Rongyao Develop capital Real ment Co.Estate Ltd.Impact of related party receivables on the According to the value analysis results of the recoverable amount by the asset appraisal agency engaged Company's operating by the Company the provision for bad debts was accrued by RMB356.2229 million.results and financial position Payables to related parties (debts) Additions Repayment Interest in Beginning in the amount in Ending the current Related Related Formation balance current the current balance Interest rate period party relationship causes (RMB100 period period (RMB100 (RMB100 00) (RMB100 (RMB100 00) 00) 00)00) 802024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Shenzhen Property Jifa Joint Current 4229.671600020229.67 Warehousi Venture accounts ng Co.Ltd.Shenzhen Tian'an Internation Joint Current al Building 521.43 521.43 Venture accounts Property Manageme nt Co. Ltd.Impact of related party payables on the All such matters have been maintained entirely within the Company's risk control tolerance and do Company's operating not adversely affect its operating results or financial position.results and financial position 5. Information on transactions with finance companies with related relationship □Applicable □Not applicable There was no deposit loan credit or other financial business between the Company and the finance companies with related relationship and their related parties. 6. Transactions between the Company's holding finance companies and its related parties □Applicable □Not applicable There was no deposit loan credit or other financial business between the Company's holding finance companies and its related parties. 7. Other major related party transactions □Applicable □Not applicable The Company had no other major related party transactions during the reporting period.XV. Major contracts and their performance 1. Custody contracting and lease matters (1) Custody □Applicable □Not applicable During the reporting period the Company had nothing under custody. (2) Contracting □Applicable □Not applicable During the reporting period the Company had no contracting. 812024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. (3) Leases □Applicable □Not applicable During the reporting period the Company had no leases. 2. Significant guarantees □Applicable □Not applicable Unit: RMB10000 External guarantees of the Company and its subsidiaries (excluding the guarantees to subsidiaries) Disclosu re date Whether Whether of Actual the to Name of Type of Counter guarante Guarante Actual guarante Collatera Guarante performa guarante guaranto guarante guarante e limit e limit date e l (if any) e period nce is e for a r e e (if any) related amount complete related announc d party ements Guarantees to subsidiaries by the Company Disclosu re date Whether Whether of Actual the to Name of Type of Counter guarante Guarante Actual guarante Collatera Guarante performa guarante guaranto guarante guarante e limit e limit date e l (if any) e period nce is e for a r e e (if any) related amount complete related announc d party ements Shenzhe n Rongyao 2019.11.Novemb Equity Real October 349137. 27- 500000 er 27 land use No Yes Estate 18 2019 17 2026.3.1 2019 right Develop 7 ment Co. Ltd.Yangzho Land use 2024.1.1 u Wuhe right June 21 July 25 20009.4 9- Real 67000 construct No Yes 2024202462029.1.1 Estate ion in 8 Co. Ltd. progress Total actual amount Total guarantee limit of guarantee to be approved to incurred to subsidiaries during 67000 47346.86 subsidiaries during the reporting period the reporting period (B1) (B2) Total approved Total actual balance guarantee limit to of guarantees to subsidiaries at the 567000 subsidiaries at the 369146.63 end of the reporting end of the reporting period (B3) period (B4) Guarantees by subsidiaries to subsidiaries 822024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Disclosu re date Whether Whether of Actual the to Name of Type of Counter guarante Guarante Actual guarante Collatera Guarante performa guarante guaranto guarante guarante e limit e limit date e l (if any) e period nce is e for a r e e (if any) related amount complete related announc d party ements Total guarantees of the Company (i.e. the total of the top three items) Total actual amount Total guarantee limit of guarantee to be approved 67000 incurred during the 47346.86 during the reporting reporting period period (A1+B1+C1) (A2+B2+C2) Total approved Total actual balance guarantee limit at the of guarantees at the 567000369146.63 end of the reporting end of the reporting period (A3+B3+C3) period (A4+B4+C4) Total actual guarantees (i.e. A4+B4+C4) as a 109.81% percentage of the Company's net assets Including: Balance of debt guarantees provided directly or indirectly for the guaranteed object whose 369146.63 asset-liability ratio exceeds 70% (E) Total amount of the above three guarantees 369146.63 (D+E+F) Explanation of the specific situation of the guarantee by the adoption of composite method 3. Entrustment of others for cash asset management (1) Entrusted wealth management □Applicable □Not applicable During the reporting period the Company had no entrusted wealth management. (2) Entrusted loans □Applicable □Not applicable There were no entrusted loans of the Company during the reporting period. 4. Other major contracts □Applicable □Not applicable There were no other major contracts of the Company during the reporting period.XVI. Notes to other major matters □Applicable □Not applicable (I) Matters related to changes in the rights and interests of the controlling shareholder 832024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. During the reporting period the Company received a notice from its controlling shareholder Shenzhen Investment Holdings Co.Ltd. that 1730300 restricted shares held by Shenzhen Duty Free Commodities Enterprise Co. Ltd. in the Company had been transferred to Shenzhen Investment Holdings Co. Ltd. due to the enforcement of a court judgment. The number of shares held by Shenzhen Investment Holdings and its persons acting in concert increased from 339452527 shares (accounting for 56.957% of the total share capital of the Company) to 341182827 shares (accounting for 57.247% of the total share capital of the Company).For details please refer to the "Announcement on Changes in Equity Interests of the Controlling Shareholder" (Announcement No.: 2024-04) disclosed by the Company on Cninfo ( http://www.cninfo.com.cn). (II) Matters related to the guarantee for subsidiary's application for facility amount from banks During the reporting period in order to meet the capital needs of the subsidiary Yangzhou Wuhe Real Estate Co. Ltd. (hereinafter referred to as "Yangzhou Wuhe Industry Investment and Development") for the development and construction of the Shenyang Digital Intelligent City Project Yangzhou Wuhe Industry Investment and Development planned to apply to banks and other financial institutions for a facility amount of no more than RMB 1 billion which was mainly for project development and construction daily operation etc. The Board agreed that the Company would sign a guarantee agreement with banks and other financial institutions to provide guarantee for Yangzhou Wuhe Industry Investment and Development to apply for facility amount and the guarantee amount would not exceed RMB 670 million. For relevant progress please refer to the "Announcement on Providing Guarantee for Subsidiary's Application for Facility Amount from the Bank" (Announcement No.: 2024-20) and the "Announcement on the Progress of Providing Guarantee for Subsidiary's Application for Facility Amount from the Bank" (Announcement No.: 2024-30) disclosed by the Company on Cninfo (http://www.cninfo.com.cn). (III) Matters concerning the signing of the housing expropriation compensation agreement by the participating companies of the Company During the reporting period Shenzhen Property Jifa Warehousing Co. Ltd. a participating company of the Company signed a House Acquisition Compensation Agreement with Shenzhen Yantian District Land Readiness Affairs Center. The compensation amount was based on the Real Estate Appraisal Report on House Acquisition Project of Pingyan Railway Reconstruction Project (Yantian Section) issued by Guozhonglian Assets Appraisal Land and Real Estate Appraisal Co. Ltd. For relevant progress please refer to the "Announcement on the Participating Companies Signing the House Acquisition Compensation Agreement" (Announcement No.: 2024-25) and the "Announcement on the Progress of the Participating Companies Receiving House Acquisition Compensation"(Announcement No.: 2024-27) disclosed by the Company on Cninfo (http://www.cninfo.com.cn). .(IV) Matters related to the controlling shareholder's agreement to transfer part of the shares of the Company and the change of equity During the reporting period the Company received a notice from its controlling shareholder Shenzhen Investment Holdings Co.Ltd. On June 28 2024 Shenzhen Investment Holdings signed the Share Transfer Agreement with China Orient Asset Management Co. Ltd. intending to transfer 29799000 unrestricted tradable shares of the Company to Orient Asset Management through the agreement along with all shareholders' equity derived from this accounting for 5.00% of the Company's total share capital. After the completion of this transfer Shenzhen Investment Holdings will hold 273345937 shares of the Company accounting for 45.87% of the total share capital of the Company. China Orient Asset Management Co. Ltd. will hold 46290402 shares of the Company accounting for 7.77% of the Company's total share capital. This change in equity does not involve a change in the Company's controlling interest. For details please refer to the " Announcement on the Agreement-based Transfer of Partial Shares by the Controlling Shareholders and Changes in Equity Interests " (Announcement No.: 2024-28) disclosed by the Company on Cninfo (http://www.cninfo.com.cn).(V) Matters concerning the application of the controlling shareholder of the Company for changing the commitments on avoiding horizontal competitions During the reporting period the Company received the Letter on Changing the Commitments on Avoiding Horizontal Competitions from the controlling shareholder Shenzhen Investment Holdings Co. Ltd. and Shenzhen Investment Holdings applied for changing the commitments on avoiding horizontal competitions. The matter was deliberated and approved at the 29th 842024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. meeting of the 10th Board of Directors and the 24th meeting of the 10th Board of Supervisors on September 30 2024 and was voted and approved at the second extraordinary general meeting in 2024. For details please refer to the Announcement on the Application of the Company's Controlling Shareholder for Change of Commitments on Avoiding Horizontal Competitions (Announcement No.: 2024-40) and the Announcement on the Resolution of the Second Extraordinary General Meeting in 2024 (Announcement No.: 2024-47) disclosed by the Company on September 30 and October 19 2024 respectively. (VI) Matters related to changes in the Company's independent directors During the reporting period Mr. MEI Yonghong independent directors of the Company applied for resignation from the independent directors and the relevant special committees of the Board after serving as independent directors for 6 consecutive years in accordance with the Administrative Measures for Listed Company Independent Directors of the China Securities Regulatory Commission and the Articles of Association and will not hold any post of the Company after resignation. According to the Articles of Association of the Company the Company will hold the 29th meeting of the 10th Board of Directors and the second extraordinary general meeting in 2024 on September 30 2024 and October 18 2024 respectively to elect Mr. SONG Shaohua as an independent director of the Company with a term of office from the date of election by the Company's general meeting to the date of expiration of the term of the 10th Board of Directors of the Company. For details please refer to the Announcement on the Proposed Appointment of Independent Directors of the Company (Announcement No.: 2024-41) and the Announcement on the Resolution of the Second Extraordinary General Meeting in 2024 (Announcement No.: 2024-47) disclosed on the Cninfo on September 30 and October 19 2024.(VII) Matters related to changes in the Company's senior officers During the reporting period upon the recommendation of the controlling shareholder of the Company Shenzhen Investment Holdings Co. Ltd. and in accordance with the provisions of the Rules Governing the Listing of Shares on the Shenzhen Stock Exchange and the Articles of Association of the Company the general manager nominated Ms. NI Huichuan as the deputy general manager of the Company and the Nomination Committee of the Board reviewed the nomination and submitted it to the Board for appointment. The Company held the 30th meeting of the 10th Board of Directors on October 30 2024 and reviewed and approved the Proposal on the Appointment of the Company's Deputy General Manager. The term of office is from the date of approval by the Board of Directors to the date of expiration of the 10th Board of Directors. For details please refer to the Announcement on the Proposed Appointment of Independent Directors of the Company (Announcement No.: 2024-51) disclosed by the Company on the Cninfo on October 31 2024.XVII. Major matters of the Company's subsidiaries □Applicable □Not applicable 852024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Section VII Changes in Shares and Shareholders I. Changes in shares 1. Changes in shares Unit: shares Before the change Increase or decrease in this change (+ -) After the change Conversio Bon New n of us Number Ratio shares provident Others Sub-total Number Ratio issu issued fund into e shares I. Shares with restrictive 18983060.32%0000018983060.32% conditions for sales 1. State-owned 00.00%0000000.00% shares 2. Shares held by the state-owned 3326 0.00% 0 0 0 1730300 1730300 1733626 0.29% legal persons 3. Other domestic 18949800.32%000-1730300-17303001646800.03% holdings Including: shares held by domestic 1894980 0.32% 0 0 0 -1730300 -1730300 164680 0.03% legal persons Shares held by domestic natural 0 0.00% 0 0 0 0 0 0 0.00% persons 4. Foreign 00.00%0000000.00% shareholding Including: shares held by overseas 0 0.00% 0 0 0 0 0 0 0.00% legal persons Shares held by overseas natural 0 0.00% 0 0 0 0 0 0 0.00% persons II. Shares without restrictive 5940807 99.68 59408078699.68%00000 conditions for 86 % sales 1. RMB ordinary 5264755 88.34 52647554388.34%00000 shares 43 % 2. Foreign shares 676052411.34 listed 67605243 11.34% 0 0 0 0 0 3% domestically 3. Foreign shares 00.00%0000000.00% listed overseas 862024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. 4. Others 0 0.00% 0 0 0 0 0 0 0.00% III. Total number 100.00 5959790 100.0 59597909200000 of shares % 92 0% Reasons for changes in shares □Applicable □Not applicable The Company has received notice from its controlling shareholder Shenzhen Investment Holdings Co. Ltd. that 1730300 restricted shares previously held by Shenzhen Duty free Commodities Enterprise Co. Ltd. have been transferred to Shenzhen Investment Holdings due to the enforcement of a court judgment. For details please refer to the Announcement on Changes in Equity Interests of the Controlling Shareholder (Announcement No. 2024-04) disclosed by the Company on Cninfo on March 6 2024. Approval of changes in shares □Applicable □Not applicable Transfer of changes in shares □Applicable □Not applicable On March 4 2024 CSDC Shenzhen Branch transferred 1730300 restricted shares of the Company previously held by Shenzhen Duty free Commodities Enterprise Co. Ltd. to Shenzhen Investment Holdings. For details please refer to the Announcement on Changes in Equity Interests of the Controlling Shareholder (Announcement No. 2024-04) disclosed by the Company on Cninfo on March 6 2024.Effect of changes in shares on financial indicators such as basic earnings per share and diluted earnings per share in the latest year and the latest period and net assets per share attributable to the Company's ordinary shareholders □Applicable □Not applicable Other contents deemed necessary by the Company or required by the securities regulators to be disclosed □Applicable □Not applicable 2. Changes in restricted shares □Applicable □Not applicable Unit: shares Number of Beginning Increase in restricted Ending number Date of lifting Name of number of restricted Reasons for shares lifted in of restricted sales shareholder restricted shares in the sales restriction the current shares restrictions shares current period period Shenzhen Investment 3326 17303001 0 1733626 Not applicable Not applicable Holdings Co.Ltd.Total 3326 1730300 0 1733626 -- -- Notes: 1 The 1730300 restricted shares of the Company previously held by Shenzhen Duty free Commodities Enterprise Co. Ltd.have been transferred to Shenzhen Investment Holdings due to the enforcement of a court judgment. For details please refer to the Announcement on Changes in Equity Interests of the Controlling Shareholder (Announcement No. 2024-04) disclosed by the Company on Cninfo on March 6 2024. 872024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. II. Issuance and listing of securities 1. Issuance of securities (excluding preferred shares) during the reporting period □Applicable □Not applicable 2. Changes in the total number of shares and shareholder structure of the Company and changes in the structure of assets and liabilities of the Company □Applicable □Not applicable 3. Existing internal employee shares □Applicable □Not applicable III. Shareholders and actual owner 1. Number of the Company's shareholders and shareholding ratios Unit: shares Total Total number of number of preferred Total number of Total ordinary shareholders preferred shareholders number of shareholders with with restored voting ordinary at the end of restored rights as of the last day shareholders 36875 the previous 36568 0 0 voting of the month at the end of month rights at the immediately preceding the reporting before the end of the the disclosure date of the period. disclosure reporting annual report (if any) date of the period (if annual report applicable) Shareholdings of shareholders holding more than 5% or the top 10 shareholders (excluding shares lent through refinancing) Number of Number Pledge marking or Number of shares held Changes of shares freezing shares held Name of Nature of Shareholding at the end of during the held without shareholder shareholder ratio the reporting under restrictions Share reporting period restricted Number on sales status period conditions Shenzhen State- Investment owned Not 50.87%303144937173030017336263014113110 Holdings legal applicable Co. Ltd. person Shenzhen Domestic State-owned non-state- Equity Not owned 6.38% 38037890 0 0 38037890 0 Operation applicable legal Management person Co. Ltd.China Orient State- Not Asset owned 2.77% 16491402 0 0 16491402 0 applicable Management legal 882024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Co. Ltd. person Overseas HKSCC Not legal 0.45% 2656478 -812869 0 2656478 0 Ltd. applicable person Domestic YANG Not natural 0.35% 2096584 405600 0 2096584 0 Yaochu applicable person Domestic DUAN Not natural 0.30% 1760565 0 0 1760565 0 Shaoteng applicable person Industrial and Commercial Bank of China Limited - China Not Others 0.28% 1643134 4300 0 1643134 0 Southern applicable CSI All Share Real Estate ETF Securities Investment Fund Domestic Not Mai Furong natural 0.23% 1374596 130000 0 1374596 0 applicable person Domestic Not HE Simo natural 0.17% 1011750 0 0 1011750 0 applicable person China Universal Asset Management Company Not Others 0.17% 1007301 1007301 0 1007301 0 Limited - applicable Social Security Fund 1103 Portfolio Circumstances under which strategic investors or general legal persons become top 10 None shareholders due to the placement of new shares (if any) The largest shareholder Shenzhen Investment Holdings Co. Ltd. is the controlling shareholder of the Notes to shareholders' Company and Shenzhen State-owned Equity Operation Management Co. Ltd. In addition it is related relationship or unknown whether the remaining eight shareholders have related relationship or are persons acting in persons acting in concert concert.Explanation of the above shareholders' involvement in entrusting/being Not applicable entrusted voting rights and waiver of voting rights Special disclosure on the Not applicable 892024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. existence of repurchase- specific accounts among the top 10 shareholders (if any) Shareholdings of the top 10 shareholders without restrictions on sales (excluding shares lent through refinancing and shares locked by senior management) Number of shares held without restrictions Type of shares Name of shareholder on sales at the end of the reporting period Type of shares Number Shenzhen Investment 301411311 RMB ordinary shares 301411311 Holdings Co. Ltd.Shenzhen State-owned Equity Operation 38037890 RMB ordinary shares 38037890 Management Co. Ltd.China Orient Asset 16491402 RMB ordinary shares 16491402 Management Co. Ltd.Hong Kong Securities Clearing Company Ltd. 2656478 RMB ordinary shares 2656478 (HKSCC) YANG Yaochu 2096584 Domestically listed foreign shares 2096584 DUAN Shaoteng 1760565 RMB ordinary shares 1760565 Industrial and Commercial Bank of China Limited - China Southern CSI All 1643134 RMB ordinary shares 1643134 Share Real Estate ETF Securities investment funds Mai Furong 1374596 Domestically listed foreign shares 1374596 HE Simo 1011750 Domestically listed foreign shares 1011750 China Universal Asset Management Company 1007301 RMB ordinary shares 1007301 Limited - Social Security Fund 1103 Portfolio Explanation of related relationship or concerted actions among the top 10 The largest shareholder Shenzhen Investment Holdings Co. Ltd. is the controlling shareholder of the shareholders with Company and Shenzhen State-owned Equity Operation Management Co. Ltd. In addition it is unrestricted tradable unknown whether the remaining eight shareholders have related relationship or are persons acting in shares and between the top concert. 10 shareholders with unrestricted tradable shares and the top 10 shareholders Disclosure on the participation of the top 10 At the end of the reporting period among the above-mentioned shareholders DUAN Shaoteng held ordinary shareholders in 1760565 shares of the Company through a credit securities account. margin trading and securities lending (if any) Participation of shareholders holding more than 5% of the shares the top 10 shareholders and the top 10 shareholders of unrestricted tradable shares in refinancing business and lending shares □Applicable □Not applicable Changes of the top 10 shareholders and the top 10 shareholders of unrestricted tradable shares compared with the previous period due to refinancing lending/repayment □Applicable □Not applicable Whether the Company's top 10 ordinary shareholders and the top 10 ordinary shareholders without restrictive condition for sales conduct any agreed repurchase transactions during the reporting period 902024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. □Yes □No The Company's top 10 ordinary shareholders and top 10 ordinary shareholders without restrictive condition for sales did not conduct any agreed repurchase transaction during the reporting period. 2. Controlling shareholders of the Company Nature of controlling shareholders: local state-owned holding Type of controlling shareholders: legal person Legal Date of Name of controlling representative/ establishm Organization code Main business shareholder person in ent charge Investment in and mergers & acquisitions of financial and quasi-financial equity including banking securities insurance funds and guarantee sectors; engage in real estate development and operation business within the scope of legally obtaining land use right; carry out investment and services in the field of strategic emerging industries; invest Shenzhen Investment October operate and manage the state-owned equity of He Jianfeng 914403007675664218 Holdings Co. Ltd. 13 2004 wholly-owned holding and participating enterprises through restructuring and integration capital operation asset disposal etc; other business authorized by the Municipal State-owned Assets Supervision and Administration Commission (if the above business scope needs to be approved according to national regulations it can be operated only after approval is obtained).Equities of other The controlling shareholder of the Company held controlling interests in the following domestic and domestic and overseas overseas listed companies during the reporting period: Shenzhen Textile A (000045) Shenzhen Special listed companies Economic Zone Real Estate & Properties A (000029) Shenzhen Universe A (000023) Ping An controlled and invested Insurance (601318) Guosen Securities (002736) Guotai Junan Securities (601211) Telling by the controlling Telecommunication Holding (000829) Shenzhen International (00152) Beauty Star (002243) Bay shareholder during the Area Development (00737) Infinova (002528) Eternal Asia (002183) Shenzhen Energy (000027) reporting period Bank of Communications (601328) Techand Ecology and Environment (300197) and Vanke (02202).Changes in controlling shareholders during the reporting period □Applicable □Not applicable There was no change in the controlling shareholder of the Company during the reporting period. 3. The Company's actual owner and its persons acting in concert Nature of actual owner: local state-owned assets management agency Type of actual owner: legal person Legal representativ Date of Organization Name of actual owner Main business e/person in establishment code charge State-owned Assets (I) Implement and enforce national provincial Supervision and Yang Jun July 1 2004 K31728067 and municipal laws and regulations related to Administration state-owned assets management draft local 912024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Commission of regulations rules and policies governing such Shenzhen Municipal management and organize their implementation People's Government upon approval. Draft regulatory frameworks and measures for operational state-owned assets and organize their implementation. (II) Perform the capital contributor duties authorized by the municipal government in accordance with laws and regulations and safeguard the rights and interests of the state-owned assets contributor in compliance with the law. (III) Be responsible for advancing the Party building work within the supervised enterprises and the commission's affiliated institutions. (IV) Assume the responsibility for supervising state-owned assets of municipal enterprises strengthen the management of state-owned assets and further establish a unified framework integrating rights obligations and responsibilities with an asset management system that combines oversight of assets personnel and operations. (V) Assume the responsibility for overseeing the preservation and appreciation of state-owned assets in supervised enterprises establish and improve an indicator system for such preservation and appreciation formulate assessment criteria monitor compliance through statistics auditing and inspections and promote supervised enterprises to fulfill their social responsibilities. (VI) Be responsible for researching and formulating master plans for the reform and development of supervised state-owned enterprises guiding and advancing state-owned enterprises' reforms and restructuring promoting the development of a modern enterprise system conducting state capital operations driving strategic adjustments to the layout and structure of the state economy and leveraging the role of state capital in vital industries and key domains such as national security and critical sectors of the national economy. (VII) Guide and advance the improvement of corporate governance structures in supervised enterprises strengthen the development of the Board and Board of Supervisors Supervisory Boards and related bodies and establish governance mechanisms characterized by clearly defined responsibilities coordinated operations and effective checks and balances. (VIII) Assume the responsibility for managing revenue distribution in supervised enterprises and standardize revenue-based income allocation and official expenses of their executives. (IX) Conduct the appointment removal and performance evaluation of executives in supervised enterprises through legal procedures and implement rewards and penalties based on their operational performance in accordance with the regulations of the municipal Party committee. Establish personnel selection 922024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. and appointment mechanisms that align with the socialist market economy system and the requirements of the modern enterprise system and enhance the incentive and restraint mechanisms for executives. (X) Be responsible for appointing or recommending directors supervisors and Finance Directors to supervised enterprises and conducting economic responsibility audits of enterprise executives in accordance with the provisions on their management. (XI) Be responsible for formulating draft annual state capital operation budgets and final accounts for supervised enterprises incorporating them into the government budget system organizing their implementation upon approval and collecting state capital gains from supervised enterprises in accordance with regulations. (XII) Be responsible for conducting strategic research formulating policies and providing guidance on the reform development and asset management of collective enterprises.(XIII) Undertake other tasks assigned by the municipal government and higher-level authorities.Equity of other domestic and overseas listed companies Shenzhen Airport Yantian Port Shenzhen Energy Shenzhen Zhenye Shenzhen Tagen Shenzhen SDG controlled by the actual Information and other listed companies.owner during the reporting period Changes in actual owner during the reporting period □Applicable □Not applicable There was no change in the actual owner of the Company during the reporting period.Chart for the property and controlling relationships between the Company and the actual owner State-ownedAssets Supervision and Administration Commission of Shenzhen Municipal People's Government Shenzhen Investment Holdings Co. Ltd.The Company The actual owner controls the Company by way of trust or other asset management methods □Applicable □Not applicable 932024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. 4. The cumulative number of shares pledged by the controlling shareholder or the largest shareholder of the Company and their persons acting in concert accounted for 80% of the number of shares held by them □Applicable □Not applicable 5. Other institutional shareholders holding more than 10% of the shares □Applicable □Not applicable 6. Restricted share reduction of controlling shareholder actual owner reorganization parties and other committed entities □Applicable □Not applicable IV. Specific implementation of share repurchase during the reporting period Implementation progress of share repurchase □Applicable □Not applicable Implementation progress of reducing repurchase shares by means of centralized bidding transaction □Applicable □Not applicable 942024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Section VIII Preferred Shares □Applicable □Not applicable During the reporting period the Company had no preferred shares.Section IX Bonds □Applicable □Not applicable 952024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Section X Financial Reports I. Audit report Type of audit opinion Standard and unqualified opinion Signing date of the audit report March 28 2025 Name of audit institution Grant Thornton Zhitong Certified Public Accountants LLP Name of certified public accountant ZHAO Juanjuan ZHOUYilan Main Body of the Audit Report ZTSZ (2025) No. 441A005716 All shareholders of Shenzhen Properties & Resources Development (Group) Ltd.I. Audit opinions We have audited the financial statements of Shenzhen Properties & Resources Development (Group) Co. Ltd. (hereinafter referred to as "SZPRD") including the consolidated and the Company's balance sheets as of December 31 2024 the consolidated and the Company's income statements the consolidated and the Company's statements of cash flows the consolidated and the Company's statements of changes in shareholders' equity for the year then ended and related notes to the financial statements.We believe that the attached financial statements are prepared in accordance with the provisions of the Accounting Standards for Business Enterprises in all material respects and fairly reflect the consolidated and company financial position of SZPRD as of December 31 2024 and the consolidated and the Company's operating results and cash flows for 2024.II. Basis for the audit opinion We have conducted our audit in accordance with the Chinese Auditing Standards for Certified Public Accountants. Our responsibilities under these standards are further described in the "Certified Public Accountant's Responsibilities for the Audit of Financial Statements" section of the audit report. In accordance with the Code of Ethics for Chinese Certified Public Accountants we are independent of SZPRD and have fulfilled other ethical responsibilities. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.III. Key audit matters Key matters are matters we deem the most significant to the audit of financial statements based on our professional judgment. These matters are addressed in the context of our audit of the financial statements as a whole and in forming our opinion thereon and we do not provide a separate opinion on these matters.(I) Recognition and measurement of real estate sales revenue See Notes III. 26 and V. 39 to the Financial Statements for details of the relevant information disclosure. 962024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. 1. Descriptions The real estate sales revenue of SZPRD for 2024 was RMB 941 million accounting for 34.40% of the total operating revenue. SZPRD recognizes the realization of revenue after the real estate meets the delivery conditions agreed in the contract and the owner obtains the right of control of the relevant real estate. As real estate sales revenue has a significant impact on SZPRD's operating results inaccurate measurement or recognition in an inappropriate accounting period will have a significant impact on SZPRD's profits. Therefore we have identified the recognition and measurement of real estate sales revenue as one of the key audit matters. 2. Audit countermeasures For the recognition and measurement of real estate sales revenue we mainly performed the following audit procedures: (1) learned evaluated and tested the design and operating effectiveness of key internal controls related to the real estate sales business; (2) sampled and reviewed the real estate sales contracts identified the contract terms and conditions related to the transfer of right of control and evaluated whether the accounting policies for the recognition of real estate revenue of SZPRD comply with the provisions of the Accounting Standards for Business Enterprises; (3) for the items of real estate sales revenue recognized in the current year selected samples reviewed the supporting documents for the real estate delivery and evaluated whether the recognition of real estate sales revenue conforms to the revenue recognition accounting policies of SZPRD; (4) performed analysis procedures on real estate sales revenue compared such revenue with that in the same period in history and the same industry analyzed the changes in revenue and gross margin and judged the rationality of the changes; (5) performed a cut-off test on the recognition of real estate revenue and evaluated whether real estate revenue is recorded in the appropriate accounting period.(II) Provision for inventory depreciation See Notes III. 13 and V. 5 to the Financial Statements for details of the relevant information disclosure. 1. Descriptions As of December 31 2024 the book balance of SZPRD's development costs and development products (hereinafter collectively referred to as "inventories") was RMB 11.939 billion; provision for depreciation was RMB 1.255 billion; book value was RMB 10.684 billion accounting for 69.86% of the total assets; inventories are measured at the cost or net realizable value (whichever is lower). The management of SZPRD (hereinafter referred to as the management) determines the net realizable value according to the amount after the estimated selling price is deducted by the estimated cost to be incurred at the time of completion estimated selling and distribution expenses and 972024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. related taxes. Since the amount of inventories is significant and the determination of the net realizable value of inventories involves significant management judgment we have identified the provision for inventory depreciation of SZPRD as one of the key audit matters. 2. Audit countermeasures For the provision for inventory depreciation we mainly performed the following audit procedures: (1) learned evaluated and tested the design and operating effectiveness of key internal control related to the provision for inventory depreciation; (2) selected samples conducted on-site observation on the inventory items and inquired the management about the progress of the inventory items; (3) evaluated the valuation method adopted by the management and compared the key estimates and assumptions adopted in the valuation including those related to the estimated selling price with the available market data and sales budget; (4) obtained the net realizable value calculation table prepared by the management and recalculate the amount of the net realizable value; (5) reviewed the inventory impairment test report issued by the third-party assessment expert hired by the management by using the expertise of the internal assessment expert of Grant Thornton Zhitong Certified Public Accountants LLP; (6) evaluated the objectivity independence and professional competence of third-party evaluation experts and internal evaluation experts of Grant Thornton Zhitong Certified Public Accountants LLP.IV. Other information The management of SZPRD is responsible for the other information. The other information includes information covered in the 2024 Annual Report of SZPRD but excludes the financial statements and our audit report.Our audit opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.In connection with our audit of financial statements our responsibility is to read the other information and in doing so consider whether the other information is materially inconsistent with financial statements or our knowledge obtained during the audit or otherwise appears to be materially misstated.If based on the work we have performed we conclude that there is a material misstatement of the other information we are required to report that fact. We have nothing to report in this regard.IV. Responsibilities of the management and those charged with governance for financial statements The management of SZPRD is responsible for preparing the financial statements in accordance with the requirements of 982024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Accounting Standards for Business Enterprises to achieve a fair presentation and for designing implementing and maintaining internal control that is necessary to ensure that the financial statements are free from material misstatements whether due to frauds or errors.In preparing the financial statements the management is responsible for assessing the going-concern ability of SZPRD disclosing matters related to going concern (if applicable) and applying the going concern basis unless the management plans to liquidate SZPRD terminate its operations or has no other realistic alternative.Those charged with governance are responsible for overseeing the financial reporting process of SZPRD.VI. Responsibilities of certified public accountants for the audit of financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement whether due to fraud or error and to issue an audit report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with the audit standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if individually or in aggregate they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.We have exercised professional judgment and maintained professional skepticism in performing our audit under the auditing standards. At the same time we also implement the following work: (1) Identify and assess the risks of material misstatement of the financial statements whether due to fraud or error design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion forgery intentional omissions misrepresentations or the override of internal control. (2) Understand the internal control related to the audit to design appropriate audit procedures. (3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management. (4) Conclude on the appropriateness of the going concern basis adopted by the management. At the same time based on the obtained audit evidence a conclusion may be drawn as to whether there are significant uncertainties regarding events or circumstances that may cause significant doubts about SZPRD's going-concern ability. If we conclude that a material uncertainty exists we are required to in our audit report draw attention of the users of statements to the related disclosures in the financial statements; if such disclosures are inadequate we should modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our audit report. However future events or circumstances may cause inability of SZPRD to continue as a going concern. 992024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. (5) Evaluate the overall presentation structure and content of the financial statements and evaluate whether the financial statements fairly reflect the relevant transactions and events. (6) Obtain sufficient and appropriate audit evidence regarding the financial information on the entities or business activities within SZPRD to formulate opinions on the financial statements. We are responsible for the guidance supervision and performance of the audit for the Group and remain solely responsible for our audit opinions.We communicate with those charged with governance regarding the planned scope and timing of the audit significant audit findings and other matters including any significant deficiencies in internal control that we identify during our audit.We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence and where applicable related safeguards.From the matters communicated with those charged with governance we determine those matters that were of most significance in the audit of the financial statements of this period and are therefore the key audit matters. We describe these matters in the audit report unless laws and regulations prohibit public disclosure of these matters or in extremely rare circumstances if it is reasonably expected that the negative consequences of communicating a matter outweigh the benefits to the public interest in the audit report we determine not to do so.Grant Thornton Certified Public Accountant of China ZHAO Juanjuan (Special General Partnership) (Engagement Partner): Beijing China Certified Public Accountant of China ZHOUYilan March 28 2025 II. Financial statements The unit in the notes to the financial statements is: RMB 1. Consolidated balance sheet Prepared by: Shenzhen Properties & Resources Development (Group) Ltd.December 31 2024 Unit: RMB 1002024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Item Ending balance Beginning balance Current assets: Monetary funds 1678116644.12 2748798476.72 Balances with clearing companies Loans to banks and other financial institutions Financial assets held for trading Derivative financial assets Notes receivable Accounts receivable 476014729.60 502806453.88 Receivables financing Advances to suppliers 7789173.69 11983086.35 Premiums receivable Reinsurance accounts receivable Provision of cession receivable Other receivables 273333289.51 624394372.82 Including: interest receivable Dividends receivable Financial assets purchased under resale agreements Inventories 10685045153.41 11098209095.74 Including: data resources Contract assets 468765.62 844485.57 Assets held for sale 170154.05 Non-current assets maturing within one year Other current assets 181721113.82 127774825.51 Total current assets 13302659023.82 15114810796.59 Non-current assets: Loans and advances Debt investments Other debt investments Long-term receivables Long-term equity investments 268187805.52 84057750.55 Other equity instrument investments 586231.82 636926.20 Other non-current financial assets Investment properties 374035893.07 386810800.47 Fixed assets 52712396.64 66436408.90 Construction in progress Productive biological assets Oil and gas assets Right-of-use assets 16967620.03 23516796.22 1012024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Intangible assets 471565.39 889801.14 Including: data resources Development expenses Including: data resources Goodwill 9446847.38 9446847.38 Long-term deferred expenses 22110090.13 21510397.88 Deferred tax assets 1232152522.89 1276440386.83 Other non-current assets 13875501.61 3505155.93 Total non-current assets 1990546474.48 1873251271.50 Total assets 15293205498.30 16988062068.09 Current liabilities: Short-term borrowings 190165458.33 230915000.00 Borrowings from central bank Loans from banks and other financial institutions Financial liabilities held for trading Derivative financial liabilities Notes payable Accounts payable 1043092277.27 662869059.59 Advances from customers 1744526.75 2265223.56 Contract liabilities 336164629.72 820424953.42 Financial assets sold under repurchase agreements Absorption of deposits and interbank deposits Receivings from vicariously traded securities Receivings from vicariously sold securities Employee compensation payable 207978691.61 218786111.78 Taxes payable 3224280429.52 4026957347.94 Other payables 1231351436.38 1217303294.25 Including: interest payable Dividends payable 12202676.04 12202676.04 Handling service fee and commissions Reinsurance accounts payable Liabilities held for sale Non-current liabilities maturing within 506702676.303092324853.07 one year Other current liabilities 23186263.57 68373661.13 Total current liabilities 6764666389.45 10340219504.74 Non-current liabilities: Reserves for insurance contracts 1022024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Long-term borrowings 4755314631.26 1399889274.47 Bonds payable Including: preferred shares Perpetual bonds Lease liabilities 11089072.57 10571092.27 Long-term payables 399749550.00 400105655.56 Long-term employee compensations payable Estimated liabilities 934205.51 650000.00 Deferred income Deferred tax liabilities 4100164.35 5862279.70 Other non-current liabilities 126919529.02 127039225.54 Total non-current liabilities 5298107152.71 1944117527.54 Total liabilities 12062773542.16 12284337032.28 Owners' equity: Equity 595979092.00 595979092.00 Other equity instruments Including: preferred shares Perpetual bonds Capital reserve 80488045.38 80488045.38 Less: treasury shares Other comprehensive income -2200355.67 -3352337.88 Special reserves Surplus reserves 125425488.21 116108727.08 General risk reserves Undistributed profits 2561990778.58 3872586802.17 Total equity attributable to owners of the 3361683048.504661810328.75 parent company Minority interests -131251092.36 41914707.06 Total owners' equity 3230431956.14 4703725035.81 Total liabilities and owners' equity 15293205498.30 16988062068.09 Legal representative: Wang Hangjun Chief Finance Officer: Cai Lili Chief Accountant: Cai Kelin 2. Balance sheet of the parent company Unit: RMB Item Ending balance Beginning balance Current assets: Monetary funds 542921067.03 1477419010.01 Financial assets held for trading Derivative financial assets Notes receivable Accounts receivable 112869081.78 120029158.78 Receivables financing Advances to suppliers Other receivables 4279938165.85 4489713785.01 1032024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Including: interest receivable Dividends receivable Inventories 50862399.82 50777366.97 Including: data resources Contract assets Assets held for sale Non-current assets maturing within one year Other current assets 4459085.14 2617751.73 Total current assets 4991049799.62 6140557072.50 Non-current assets: Debt investments Other debt investments Long-term receivables Long-term equity investments 1558679206.62 1374549151.65 Other equity instrument investments 816731.82 867426.20 Other non-current financial assets Investment properties 233185594.71 253100089.70 Fixed assets 12189961.87 22373578.76 Construction in progress Productive biological assets Oil and gas assets Right-of-use assets 4369643.63 2700397.70 Intangible assets 3495333.29 3887333.33 Including: data resources Development expenses Including: data resources Goodwill Long-term deferred expenses 380493.32 Deferred tax assets 4486334.83 1961067.37 Other non-current assets 3167926650.86 2853376650.86 Total non-current assets 4985149457.63 4513196188.89 Total assets 9976199257.25 10653753261.39 Current liabilities: Short-term borrowings Financial liabilities held for trading Derivative financial liabilities Notes payable Accounts payable 56048131.44 77667521.25 Advances from customers 227.00 Contract liabilities 761904.76 Employee compensation payable 51619107.46 57605546.32 1042024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Taxes payable 2376003.37 75570618.96 Other payables 6853403083.89 7278131009.11 Including: interest payable Dividends payable 29642.40 29642.40 Liabilities held for sale Non-current liabilities maturing within 402621528.3963605554.05 one year Other current liabilities Total current liabilities 7366829759.31 7552580476.69 Non-current liabilities: Long-term borrowings 400400000.00 Bonds payable Including: preferred shares Perpetual bonds Lease liabilities 3082216.96 1708456.34 Long-term payables 399749550.00 400105655.56 Long-term employee compensations payable Estimated liabilities Deferred income Deferred tax liabilities 1092410.91 675099.43 Other non-current liabilities 40000000.00 40000000.00 Total non-current liabilities 443924177.87 842889211.33 Total liabilities 7810753937.18 8395469688.02 Owners' equity: Equity 595979092.00 595979092.00 Other equity instruments Including: preferred shares Perpetual bonds Capital reserve 53876380.11 53876380.11 Less: treasury shares Other comprehensive income -3064972.70 -3004584.80 Special reserves Surplus reserves 125425488.21 116108727.08 Undistributed profits 1393229332.45 1495323958.98 Total owners' equity 2165445320.07 2258283573.37 Total liabilities and owners' equity 9976199257.25 10653753261.39 3. Consolidated income statement Unit: RMB Item Year 2024 Year 2023 I. Total operating revenue 2734158884.05 2965117025.04 Including: operating revenue 2734158884.05 2965117025.04 Interest income 1052024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Premiums earned Revenue from handling service fee and commissions: II. Total operating costs 2711750583.36 2745490676.70 Including: operating costs 2250014088.33 2233525382.49 Interest expenses Handling service fee and commissions Surrender value Net amount of compensation payout Net provision for insurance contract liabilities Policy dividends Reinsurance costs Taxes and surcharges 86911950.69 106650246.82 Selling and distribution 43995985.4146757158.57 expenses G&A expenses 284433101.74 310578375.15 R&D expenses 5351808.44 4133484.37 Financial expenses 41043648.75 43846029.30 Including: interest expenses 68401770.57 55928873.37 Interest income 31389808.25 19183529.19 Plus: other income 4561713.55 15432192.52 Investment income ("-" for 185619483.06705759652.36 losses) Including: investment income from associates and joint 184223509.99 4339433.24 ventures Gains from derecognition of financial assets measured at amortized costs Exchange gains (losses expressed with "-") Net exposure hedging gains (loss expressed with "-") Gains from changes in fair value ("-" for losses) Loss from credit impairment -363088397.28-19844952.87 (losses expressed with "-" ) Asset impairment loss (losses -1036113360.07-212173623.03 expressed with "-") Gains from disposal of assets 87845.86833369.19 (losses expressed with "-") III. Operating profit ("-" for loss) -1186524414.19 709632986.51 Plus: non-operating revenue 1067805.57 3604677.09 Less: non-operating expenses 8355964.49 6504504.20 1062024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. IV. Total profits ("-" for total losses) -1193812573.11 706733159.40 Less: income tax expenses 93331151.00 256874297.92 V. Net profit ("-" for net loss) -1287143724.11 449858861.48 (I) Classified by operating sustainability 1. Net profit from continued -1287143724.11449797505.65 operation (losses expressed with "-") 2. Net profit from discontinued 0.0061355.83 operations (losses expressed with "-") (II) Classified by ownership 1. Net profit attributable to -1114764922.17464014492.11 shareholders of the parent company 2. Minority interests -172378801.94 -14155630.63 VI. Other comprehensive income net of 1151982.21502040.07 tax Other comprehensive income net of tax attributable to owners of parent 1151982.21 502040.07 company (I) Other comprehensive income that cannot be reclassified into profit or -60387.90 -261743.15 loss later 1. Changes in re-measurement of defined benefit plans 2. Other comprehensive income that cannot be transferred to profit or loss under the equity method 3. Changes in fair value of other -60387.90-261743.15 equity instrument investments 4. Changes in fair value of the enterprise's own credit risk 5. Others (II) Other comprehensive income 1212370.11763783.22 that will be reclassified into profit or loss 1. Other comprehensive income that can be transferred to profit or loss under the equity method 2. Changes in fair value of other debt investments 3. Amount of financial assets reclassified and included in other comprehensive income 4. Provision for credit impairment of other debt investments 5. Reserve for cash flows 6. Differences arising from translation of foreign-currency financial 1212370.11 763783.22 statements 7. Others Net of tax of other comprehensive income attributable to minority shareholders VII. Total comprehensive income -1285991741.90 450360901.55 Total comprehensive income attributable to the owner of the parent -1113612939.96 464516532.18 company 1072024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Total comprehensive income -172378801.94-14155630.63 attributable to minority shareholders VIII. Earnings per share (I) Basic earnings per share -1.8705 0.7786 (II) Diluted earnings per share -1.8705 0.7786 In case of any business combination under the same control in the current period the net profit realized by the combinee before the combination was RMB0.00 and the net profit realized by the combinee in the previous period was RMB 0.00.Legal representative: Wang Hangjun Chief Finance Officer: Cai Lili Chief Accountant: Cai Kelin 4. Income statement of the parent company Unit: RMB Item Year 2024 Year 2023 I. Operating revenue 64213916.30 1053809354.95 Less: operating costs 47304177.17 790579825.41 Taxes and surcharges 5700415.15 11569489.25 Selling and distribution expenses 666120.15 1376939.25 G&A expenses 84866260.13 100710539.92 R&D expenses Financial expenses 14386286.50 12752211.70 Including: interest expenses 34681762.07 24335591.87 Interest income 19113464.20 12114868.86 Plus: other income 176813.10 252975.99 Investment income ("-" for 184223509.99761774908.45 losses) Including: investment income 184223509.994339433.24 from associates and joint ventures Gains from derecognition of financial assets measured by amortized costs (losses expressed with "-") Net exposure hedging gains (loss expressed with "-") Gains from changes in fair value ("-" for losses) Loss from credit impairment -5066946.80-3568827.56 (losses expressed with "-" ) Asset impairment loss (losses expressed with "-") Gains from disposal of assets 111000.73 (losses expressed with "-") II. Operating profits ("-" for loss) 90624033.49 895390407.03 Plus: non-operating revenue 29599.13 1910619.60 Less: non-operating expenses 541779.71 15573.60 III. Total profit ("for" total loss) 90111852.91 897285453.03 Less: income tax expenses -3055758.39 225123943.28 IV. Net profit ("-" for net loss) 93167611.30 672161509.75 1082024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. (I) Net profit from continued operation 93167611.30672161509.75 ("-" for net loss) (II) Net profit from discontinued 0.00 operations (losses expressed with "-") V. Net of tax of other comprehensive -60387.90-261743.15 income (I) Other comprehensive income that cannot be reclassified into profit or -60387.90 -261743.15 loss later 1. Changes in re-measurement of 0.00 defined benefit plans 2. Other comprehensive income that cannot be transferred to profit or loss 0.00 under the equity method 3. Changes in fair value of other -60387.90-261743.15 equity instrument investments 4. Changes in fair value of the 0.00 enterprise's own credit risk 5. Others 0.00 (II) Other comprehensive income 0.00 that will be reclassified into profit or loss 1. Other comprehensive income that can be transferred to profit or loss 0.00 under the equity method 2. Changes in fair value of other 0.00 debt investments 3. Amount of financial assets reclassified and included in other 0.00 comprehensive income 4. Provision for credit impairment 0.00 of other debt investments 5. Reserve for cash flows 0.00 6. Differences arising from translation of foreign-currency financial 0.00 statements 7. Others 0.00 VI. Total comprehensive income 93107223.40 671899766.60 VII. Earnings per share (I) Basic earnings per share (II) Diluted earnings per share 5. Consolidated statement of cash flows Unit: RMB Item Year 2024 Year 2023 I. Cash flows from operating activities: Cash received from sale of goods and 2539665135.963136072105.49 rendering of services Net increase in deposits from customers and deposits with banks and other financial institutions Net increase in borrowings from central bank Net increase in borrowings from banks 1092024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. and other financial institutions Cash received from receiving insurance premium of original insurance contract Net cash received from reinsurance business Net increase in deposits and investments from policyholders Cash received from interests handling service fee and commissions Net increase in borrowings from banks and other financial institutions Net increase in funds from repurchase business Net cash received from vicariously traded securities Refunds of taxes and surcharges 25035642.0917871338.77 received Other cash received related to 482860988.36355263031.70 operating activities Sub-total of cash inflows from operating 3047561766.413509206475.96 activities Cash paid for purchase of goods and 2085129192.682249429282.59 receipt of services Net increase in loans and advances to customers Net increase in deposits with central bank and with banks and other financial institutions Cash paid for original insurance contract claims Net increase in loans to banks and other financial institutions Cash paid for interests handling service fee and commissions Cash paid for policy dividends Cash paid to and on behalf of 967528463.67971486269.04 employees Cash paid for taxes and surcharges 1057184197.95 280607594.18 Other cash paid related to operating 361718086.63271776314.48 activities Sub-total of cash outflows from 4471559940.933773299460.29 operating activities Net cash flows from operating activities -1423998174.52 -264092984.33 II. Cash flows from investing activities: Cash received from recovery of investment Cash received from investment 93455.0263120.00 income Net cash received from disposal of fixed assets intangible assets and other 55903425.50 92191.39 long-term assets Net cash received from disposal of 634578885.34 1102024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. subsidiaries and other business units Other cash received related to investing activities Sub-total of cash inflows from investing 55996880.52634734196.73 activities Cash paid to acquire and construct fixed assets intangible assets and other 10344411.99 7641999.39 long-term assets Cash paid for investments 57412000.00 Net increase in pledge loans Net cash paid to acquire subsidiaries and other business units Other cash paid related to investing activities Sub-total of cash outflows from investing 67756411.997641999.39 activities Net cash flows from the investing -11759531.47627092197.34 activities III. Cash flows from financing activities: Cash received from absorption of investments Including: cash received by subsidiaries from absorption of investments of minority shareholders Cash received from acquisition of 1239948405.211084580254.47 borrowings Other cash received related to 400000000.00 financing activities Sub-total of cash inflows from financing 1239948405.211484580254.47 activities Cash paid for debt repayments 502523324.00 194193324.00 Cash paid for distribution of dividends 387842921.21402974331.30 and profits or payment of interests Including: dividends and profit paid to 786997.48245000.00 minority shareholders by subsidiaries Other cash paid related to financing 37214506.7327083856.33 activities Sub-total of cash outflows from 927580751.94624251511.63 financing activities Net cash flows from financing activities 312367653.27 860328742.84 IV. Effect of fluctuation in exchange rate 1050801.90117321.79 on cash and cash equivalents V. Net increase in cash equivalents -1122339250.82 1223445277.64 Plus: beginning balance of cash 2733139135.121509693857.48 equivalents VI. Ending balance of cash equivalents 1610799884.30 2733139135.12 6. The statement of cash flows of the parent company Unit: RMB Item Year 2024 Year 2023 I. Cash flows from operating activities: Cash received from sale of goods and 48548339.2091759421.31 rendering of services 1112024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Refunds of taxes and surcharges 0.17 received Other cash received related to 1280972888.611234735240.99 operating activities Sub-total of cash inflows from operating 1329521227.981326494662.30 activities Cash paid for purchase of goods and 54312689.0754693324.00 receipt of services Cash paid to and on behalf of 57929002.7552203282.11 employees Cash paid for taxes and surcharges 81029962.82 52237252.64 Other cash paid related to operating 1462259953.79694228351.07 activities Sub-total of cash outflows from 1655531608.43853362209.82 operating activities Net cash flows from operating activities -326010380.45 473132452.48 II. Cash flows from investing activities: Cash received from recovery of 835000000.00 investment Cash received from investment 93455.02151496228.41 income Net cash received from disposal of fixed assets intangible assets and other long-term assets Net cash received from disposal of subsidiaries and other business units Other cash received related to investing activities Sub-total of cash inflows from investing 93455.02986496228.41 activities Cash paid to acquire and construct fixed assets intangible assets and other 1251193.04 697768.98 long-term assets Cash paid for investments 314000000.00 491000000.00 Net cash paid to acquire subsidiaries and other business units Other cash paid related to investing activities Sub-total of cash outflows from investing 315251193.04491697768.98 activities Net cash flows from the investing -315157738.02494798459.43 activities III. Cash flows from financing activities: Cash received from absorption of investments Cash received from acquisition of borrowings Other cash received related to 400000000.00 financing activities Sub-total of cash inflows from financing 400000000.00 activities Cash paid for debt repayments 61600000.00 188100000.00 Cash paid for distribution of dividends 202467017.91239765330.40 and profits or payment of interests Other cash paid related to financing 20629854.24 1122024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. activities Sub-total of cash outflows from 284696872.15427865330.40 financing activities Net cash flows from financing activities -284696872.15 -27865330.40 IV. Effect of fluctuation in exchange rate 9238.09-697037.83 on cash and cash equivalents V. Net increase in cash equivalents -925855752.53 939368543.68 Plus: beginning balance of cash 1467641238.73528272695.05 equivalents VI. Ending balance of cash equivalents 541785486.20 1467641238.73 7. Consolidated statements of changes in owners' equity The current period Unit: RMB Year 2024 Equity attributable to owners of the parent company Other equity Othe instruments r Total Less: Gene Undi Min Item Capi com Spec Surp owntreas ral strib ority Equi Prefe Perp tal preh ial lus Othe Sub-ury risk uted inter ers' ty rred etual Othe reser ensiv reser reser rs total equitshare reser profi ests share bond rs ve e ves ves ys ves ts s s inco me 595804-116387466419470 I. Ending 979 880 335 108 258 181 147 372 balance last year 092. 45.3 233 727. 680 032 07.0 503 0087.88082.178.7565.81 Plus: changes in accounting policies Correc tion of prior period errors Others II. Beginning 595 804 - 116 387 466 419 470 balance as at the 979 880 335 108 258 181 147 372 beginning of this 092. 45.3 233 727. 680 032 07.0 503 year 00 8 7.88 08 2.17 8.75 6 5.81 III. Changes in ---- amount for the 115931131130173147 current period 198676059012165329 (decreases 2.211.13602728799.307 expressed with 3.590.25429.67 "-") ---- (I) Total 115 111 111 172 128 comprehensive 198 476 361 378 599 income 2.21 492 293 801. 174 2.179.96941.90 (II) Capital 1132024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. contributed or reduced by owners 1. Ordinary shares contributed by owners 2. Capital invested by the holders of other equity instruments 3. Amounts of share-based payments recognized in owners' equity 4. Others --- - 931195185186 (III) Profit 786 676262945732 distribution 997. 1.13237.476.474. 48 837018 - 931 1. Withdrawal of 931 676 surplus reserves 676 1.13 1.13 2. Withdrawal of general risk reserves --- 3. Profit - 185185186 distributed to 786 945945732 owners (or 997. 476.476.474. shareholders) 48 707018 4. Others (IV) Internal transfer of owners' equity 1. Conversion of capital reserves into paid-in capital (or share capital) 2. Conversion of surplus reserves into paid-in capital (or share capital) 3. Surplus reserves offsetting losses 4. Changes in benefit plans 1142024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. transferred to retained earnings 5. Transfer of other comprehensive income into retained earnings 6. Others (V) Special reserves 1. Withdrawal in the current period 2. Amount used in the current period --- 568568568 (VI) Others 863.863.863. 595959 - 595804-125256336323 IV. Balance as at 131 979880220425199168043 the end of the 251 092.45.3035488.077304195 current period 092. 0085.67218.588.506.14 36 Amount in previous period Unit: RMB Year 2023 Equity attributable to owners of the parent company Other equity Othe instruments r Total Less: Gene Undi Min Item Capi com Spec Surp owntreas ral strib ority Equi Prefe Perp tal preh ial lus Othe Sub- ers'ury risk uted inter ty rred etual Othe reser ensiv reser reser rs total equitshare reser profi ests share bond rs ve e ves ves ys ves ts s s inco me 595804-488369441563447 I. Ending 979 880 385 925 275 425 153 057 balance last year 092. 45.3 437 76.1 383 916 37.6 450 0087.9502.818.3496.03 Plus: changes in accounting policies Correc tion of prior period errors Others II. Beginning 595 804 - 488 369 441 563 447 balance as at the 979 880 385 925 275 425 153 057 beginning of this 092. 45.3 437 76.1 383 916 37.6 450 1152024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. year 00 8 7.95 0 2.81 8.34 9 6.03 III. Changes in - amount for the 672 179 247 233 502144 current period 161 832 551 150 040.006 (decreases 50.9 969. 160. 529. 0730.6 expressed with 8 36 41 78 3 "-") - 464464450 (I) Total 502 141 014516360 comprehensive 040. 556 492.532.901. income 07 30.6 111855 3 (II) Capital contributed or reduced by owners 1. Ordinary shares contributed by owners 2. Capital invested by the holders of other equity instruments 3. Amounts of share-based payments recognized in owners' equity 4. Others --- 672- 282215215 (III) Profit 161 245 364148393 distribution 50.9 000. 603.452.452. 800 192121 - 672 672 1. Withdrawal of 161 161 surplus reserves 50.9 50.9 8 8 2. Withdrawal of general risk reserves --- 3. Profit - 215215215 distributed to 245 148148393 owners (or 000. 452.452.452. shareholders) 00 212121 4. Others (IV) Internal transfer of owners' equity 1. Conversion of 1162024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. capital reserves into paid-in capital (or share capital) 2. Conversion of surplus reserves into paid-in capital (or share capital) 3. Surplus reserves offsetting losses 4. Changes in benefit plans transferred to retained earnings 5. Transfer of other comprehensive income into retained earnings 6. Others (V) Special reserves 1. Withdrawal in the current period 2. Amount used in the current period --- 181181181 (VI) Others 691691691 9.569.569.56 595804-116387466419470 IV. Balance as at 979880335108258181147372 the end of the 092.45.3233727.68003207.0503 current period 0087.88082.178.7565.81 8. Statement of changes in owner's equity of parent company The current period Unit: RMB Year 2024 Other equity instruments Other Less: compr Specia Surplu Item Undist TotalPreferr Perpet Capital treasur ehensi l sEquity ributed Others owners ed ual Others reserve y ve reserve reserve profits ' equity shares bonds shares incom s s e I. Ending balance 59597 53876 - 11610 1495 2258 last year 9092. 380.1 3004 8727. 32395 28357 1172024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. 001584.80088.983.37 Plus: changes in accounting policies Correcti on of prior period errors Others II. Beginning 5959753876-1161014952258 balance as at the 9092.380.130048727.3239528357 beginning of this 001584.80088.983.37 year III. Changes in amount for the - - - current period 9316 10209 92838 60387 (decreases 761.13 4626. 253.3.90 expressed with "- 53 0 ") (I) Total - 93167 93107 comprehensive 60387 611.3 223.4 income .90 0 0 (II) Capital contributed or reduced by owners 1. Ordinary shares contributed by owners 2. Capital invested by the holders of other equity instruments 3. Amounts of share-based payments recognized in owners' equity 4. Others -- (III) Profit 9316 19526 18594 distribution 761.13 2237. 5476. 8370 - 1. Withdrawal of 9316 9316 surplus reserves 761.13 761.13 2. Profit - - distributed to 18594 18594 owners (or 5476. 5476.shareholders) 70 70 3. Others (IV) Internal transfer of owners' equity 1182024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. 1. Conversion of capital reserves into paid-in capital (or share capital) 2. Conversion of surplus reserves into paid-in capital (or share capital) 3. Surplus reserves offsetting losses 4. Changes in benefit plans transferred to retained earnings 5. Transfer of other comprehensive income into retained earnings 6. Others (V) Special reserves 1. Withdrawal in the current period 2. Amount used in the current period (VI) Others IV. Balance as at 59597 53876 - 12542 1393 2165 the end of the 9092. 380.1 3064 5488. 22933 44532 current period 00 1 972.70 21 2.45 0.07 Amount in previous period Unit: RMB Year 2023 Other equity instruments Other Less: compr Specia Surplu Item Undist TotalPreferr Perpet Capital treasur ehensi l sEquity ributed Others owners ed ual Others reserve y ve reserve reserve profits ' equity shares bonds shares incom s s e 5959753876-4889211051801 I. Ending balance 9092.380.12742576.15270553225 last year 001841.6502.428.98 Plus: changes in accounting policies Correcti on of prior period errors Others II. Beginning 59597 53876 - 48892 1105 1801 balance as at the 9092. 380.1 2742 576.1 52705 53225 1192024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. beginning of this 00 1 841.65 0 2.42 8.98 year III. Changes in amount for the -672163897945675 current period 26174150.96906.1314. (decreases 3.1585639 expressed with "- ") (I) Total - 67216 67189 comprehensive 26174 1509. 9766.income 3.15 75 60 (II) Capital contributed or reduced by owners 1. Ordinary shares contributed by owners 2. Capital invested by the holders of other equity instruments 3. Amounts of share-based payments recognized in owners' equity 4. Others -- 67216 (III) Profit 28236 21514 150.9 distribution 4603. 8452. 8 1921 - 67216 1. Withdrawal of 67216 150.9 surplus reserves 150.9 8 8 2. Profit - - distributed to 21514 21514 owners (or 8452. 8452.shareholders) 21 21 3. Others (IV) Internal transfer of owners' equity 1. Conversion of capital reserves into paid-in capital (or share capital) 2. Conversion of surplus reserves into paid-in capital (or share capital) 3. Surplus reserves offsetting losses 1202024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. 4. Changes in benefit plans transferred to retained earnings 5. Transfer of other comprehensive income into retained earnings 6. Others (V) Special reserves 1. Withdrawal in the current period 2. Amount used in the current period (VI) Others IV. Balance as at 59597 53876 - 11610 1495 2258 the end of the 9092. 380.1 3004 8727. 32395 28357 current period 00 1 584.80 08 8.98 3.37 III. Company profile Shenzhen Properties & Resources Development (Group) Ltd. (hereinafter referred to as "the Company") was established with the approval of the Shenzhen Municipal People's Government of Guangdong Province under the official document SFBF [1991] No. 831. It was restructured from the former Shenzhen Properties Development General Company into a joint stock limited company registered with the Shenzhen Administration for Market Regulation on January 17 1983 and headquartered in Shenzhen Guangdong Province. The Company currently holds a Business License for Enterprise Legal Person with the registration number/unified social credit code 91440300192174135N a registered capital of RMB 595979092 and a total of 595979092 shares (with a par value of RMB 1 per share). Of which restricted tradable shares include 1898306 A shares and 0 B shares； unrestricted tradable shares comprise 526475543 A shares and 67605243 B shares. The Company's shares have been listed on the Shenzhen Stock Exchange since March 30 1992.The Company operates in the real estate industry. The primary operating activities include real estate development and commercial property sales construction and management of commercial buildings property leasing and construction supervision. Domestic commerce and the supply and marketing industry (excluding state-monopolized exclusively distributed and specially controlled commodities). Main products/services include: development and sales of commercial residential properties; property management service; building maintenance equipment maintenance for buildings landscaping and gardening and cleaning services; property leasing services; engineering supervision; retail of Chinese cuisine Western cuisine alcoholic beverages etc.The financial statements were approved for external release at the 34th Meeting of the 10th Board of Directors on March 28 2025.The consolidation scope of the Company's consolidated financial statements is determined based on control including the financial statements of the Company and all its subsidiaries. A subsidiary refers to an enterprise or entity controlled by the Company. A total of 58 subsidiaries are included in the consolidation scope of the consolidated statements during the current period. For details regarding the scope of consolidated financial statements and its changes refer to Notes 9 and 10 to the financial statements. 1212024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. IV. Basis for preparation of financial statements 1. Basis for preparation The financial statements are prepared on the going concern basis reflecting actual transaction events in accordance with the relevant provisions of the Accounting Standards for Business Enterprises and based on the significant accounting policies and accounting estimates described below. 2. Going concern The Company has no events or conditions that raise significant doubts about its ability to continue as a going-concern ability for the twelve months following the end of the reporting period.V. Significant accounting policies and accounting estimates Tips of specific accounting policies and accounting estimates: The Company based on its actual production and operational characteristics and in accordance with the relevant Accounting Standards for Business Enterprises has established specific accounting policies and accounting estimates for transactions and events such as revenue recognition. For details refer to the respective sections below: "Financial Instruments" "Inventories" and "Revenue." 1. Statement of compliance with the Accounting Standards for Business Enterprises The financial statements of the Company prepared on the aforementioned basis for preparation comply with the requirements of the latest Accounting Standards for Business Enterprises and their application guidelines interpretations and other relevant regulations (collectively referred to as the "Accounting Standards for Business Enterprises") issued by the Ministry of Finance.They fairly and completely reflect the Company's financial position operating results cash flows and other relevant information.In addition the preparation of this financial report references the presentation and disclosure requirements stipulated in the CSRC's Rules for the Preparation and Disclosure of Information by Companies Offering Securities to the Public No. 15 – General Requirements for Financial Reports (2023 Revision) and the Notice on the Implementation of New Accounting Standards for Business Enterprises by Listed Companies (Accounting Department Letter [2018] No. 453). 2. Accounting period The company adopts the calendar year as its accounting period which runs from January 1 to December 31 each year. 3. Operating cycle For industries other than real estate the Companies' operating cycles are relatively short and a 12-month period is used as the threshold for classifying the liquidity of assets and liabilities. The operating cycle in the real estate industry spans from property development to sales realization generally exceeding 12 months. The specific duration is determined by the nature of the development project with the operating cycle itself serving as the criterion for classifying the liquidity of assets and liabilities. 1222024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. 4. Recording currency The Company and its domestic subsidiaries adopt RMB as their recording currency. The overseas subsidiaries of the Company determine their recording currency based on the currency of the primary economic environment in which they operate. The Company prepares its financial statements using RMB as the reporting currency. 5. Determination methods and selection basis for materiality threshold □Applicable □ Not applicable Item Importance criteria Significant accounts receivable with the provision for bad debts made on an individual Accounts receivable balances of RMB 5 million or more basis A non-wholly-owned subsidiary with revenue exceeding 10% of the Major non-wholly-owned subsidiaries consolidated operating revenue or total assets exceeding 5% of the consolidated total assets. 6. Accounting treatments for business combinations under common control and those not under common control (1) Accounting treatments for business combination under common control For business combinations under common control the assets and liabilities acquired by the Company from the acquiree are measured at the book value of the acquiree in the consolidated financial statements of the ultimate controller as of the combination date. The difference between the book value of the merger consideration (or the total par value of the shares issued) and the book value of the net assets acquired in the merger is adjusted against capital reserve and if the capital reserve is insufficient to absorb the difference the adjustment is made to retained earnings.In a business combination under common control achieved through multiple transactions in stages the assets and liabilities of the combined party acquired by the Company in the combination are measured at their book value in the ultimate controller's consolidated financial statements as of the combination date; the difference between the sum of the book value of the pre- combination investment held and the book value of the new consideration paid on the combination date and the book value of the net assets acquired in the combination is adjusted against capital reserve. If the capital reserve is insufficient to absorb the difference the adjustment is made to retained earnings. For the long-term equity investments held by the combining party in the combined party before obtaining the right of control the recognized profit or loss other comprehensive income and other changes in owners' equity between the later of the date the original equity was acquired and the date when both the combining party and the combined party first came under the ultimate controller's control up to the combination date shall be offset against either the retained earnings at the beginning of the comparative statements period or the current period's profit or loss. (2) Accounting treatments for business combination not under common control In a business combination not under common control the combination cost is determined as the fair value of the assets transferred liabilities incurred or assumed and equity securities issued by the acquirer on the acquisition date to obtain the right of control over the acquiree. On the acquisition date the assets liabilities and contingent liabilities obtained from the acquiree are recognized at fair value.On the acquisition date the Company recognizes the difference between the combination cost and the fair value share of net identifiable assets obtained from the acquiree as goodwill which is subject to subsequent measurement at cost less accumulated 1232024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. provision for impairment; the difference between the combination cost and the fair value share of net identifiable assets obtained from the acquiree is after verification recognized in profit or loss.In a business combination not under common control achieved through multiple transactions in stages the combination cost is the sum of the consideration paid on the acquisition date and the fair value of the equity interest in the acquiree held prior to the acquisition date as of the acquisition date. For equity interests in the acquiree held prior to the acquisition date such interests are remeasured at their fair value as of the acquisition date and the difference between the fair value and the book value is recognized in current period investment income; for equity interests in the acquiree held prior to the acquisition date any other comprehensive income and other changes in owners' equity related to such interests are reclassified to profit or loss on the acquisition date except for other comprehensive income arising from the remeasurement of the net liabilities under defined benefit plans or changes in net assets of the acquiree and other comprehensive income related to non-trading equity instrument investments previously designated as measured at fair value with changes recognized in other comprehensive income. (3) Treatment of transaction costs in business combination In a business combination intermediary fees such as audit legal services valuation consulting and other related G&A expenses incurred for the transaction are recognized in profit or loss when incurred. The transaction costs incurred for issuing equity securities or debt securities as merger consideration are included in the initial recognized amount of such equity securities or debt securities. 7. Criteria for determining control and preparation methods for consolidated financial statements (1) Judgment criteria for control The consolidation scope in the consolidated financial statements is determined on the basis of control. Control means that the Company has the power over the investees participates in their relevant activities to obtain variable returns and has the ability to use that power to affect the amount of returns from the investees. When changes in relevant facts and circumstances lead to changes in the key elements related to the definition of control the Company will re-evaluate accordingly.When determining whether to include a structured entity within the consolidation scope the Company comprehensively evaluates all relevant facts and circumstances including assessing the structured entity's purpose and design identifying the types of variable returns and evaluating whether control exists over the structured entity based on its participation in relevant activities that expose it to some or all variability of returns. (2) Preparation methods for consolidated financial statements Consolidated financial statements are prepared by the Company based on the financial statements of the Company and its subsidiaries along with other relevant materials. In preparing consolidated financial statements the accounting policies and reporting periods of the Company and its subsidiaries must be consistent and significant intercompany transactions and balances are eliminated.During the reporting period subsidiaries and businesses added due to a business combination under common control are treated as having been included in the Company's consolidation scope from the date they came under the control of the ultimate controller.Their operating results and cash flows from that date are incorporated into the consolidated income statement and consolidated statement of cash flows respectively. 1242024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. For subsidiaries and businesses added during the reporting period due to a business combination not under common control the Company includes their revenue expenses and profits from the acquisition date to the end of the reporting period in the consolidated income statement and incorporates their cash flows into the consolidated statement of cash flows.The portion of a subsidiary's shareholders' equity not attributable to the Company is presented separately as minority interests under shareholders' equity in the consolidated balance sheet; the share of the subsidiary's net profit or loss attributable to minority interests is presented in the consolidated income statement under the net profit item as "minority interest income". If the losses borne by minority shareholders exceed the share of owners' equity they hold at the beginning of the subsidiary's period the excess continues to be deducted from the minority interests. (3) Purchase of minority shareholders' equity in a subsidiary The difference between the cost of newly acquired long-term equity investments from the purchase of minority interests and the proportionate share of the subsidiary's net asset share calculated based on the increased ownership ratio from the acquisition date or combination date as well as the difference between the disposal proceeds from partial disposal of equity investments in a subsidiary without loss of control and the proportionate share of the subsidiary's net asset share attributable to the disposed long- term equity investments calculated from the acquisition date or combination date shall be adjusted against capital reserve in the consolidated balance sheet. If the capital reserve is insufficient to offset the difference the remaining amount shall be adjusted against retained earnings. (4) Treatment for loss of right of control over subsidiaries When the Company disposes of a portion of its equity investments or loses the right of control over the original subsidiary due to other reasons the remaining equity interest shall be remeasured at fair value as of the date of loss of control; the difference between the total of the consideration received from the disposal of equity and the fair value of the remaining equity interest less the sum of the subsidiary's net assets attributable to the original ownership percentage calculated based on book value from the acquisition date and the related goodwill shall be recognized as investment income in the period of loss of control.Other comprehensive income related to equity investments in the former subsidiary shall be reclassified on the same basis as if the subsidiary had directly disposed of the related assets or liabilities upon loss of control and other changes in owners' equity previously recognized under accounting by equity method related to the former subsidiary shall be transferred to profit or loss in the period of loss of control. (5) Treatment for the disposal of equity in stages until loss of control occurs If the terms conditions and economic effects of multiple transactions involving the disposal of equity in stages until loss of control meet one or more of the following conditions the Company shall account for such transactions as a package of transactions： 1) The transactions are entered into either simultaneously or in contemplation of one another; 2) The transactions as a whole are necessary to achieve a complete commercial outcome; 3) The occurrence of one transaction is contingent on the occurrence of at least one other transaction; 4) A transaction is not economically viable when considered individually but is economically viable when considered together with the others. 1252024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. When conducting a disposal of equity in stages until the loss of the right of control occurs the measurement of the remaining equity interest and the recognition of profit or loss related to the disposal shall follow the same accounting principles as those described in the preceding section for "Treatment upon Loss of Control of a Subsidiary." Prior to the loss of control the difference between the consideration received from each disposal and the disposing investment's proportionate share of the subsidiary's net assets calculated based on book value from the acquisition date shall be accounted for as follows: 1) If the transactions constitute "a package of transactions" the related amount shall be recognized in other comprehensive income. The related amounts shall be transferred to profit or loss during the period of loss of control. 2) If the transactions do not constitute "a package of transactions" they shall be recognized as equity transactions in the capital reserve (equity premium/capital premium). Upon loss of control the related amounts shall not be transferred to profit or loss in the period of loss of control. 8. Classification of joint venture arrangements and accounting treatments for joint operations (1) Identification and classification of joint venture arrangements A joint venture arrangement refers to an arrangement under the common control of two or more parties. A joint venture arrangement has the following characteristics: 1) all participating parties are bound by the arrangement; 2) two or more participating parties exercise common control over the arrangement. No single participating party can control the arrangement individually and any party with common control over the arrangement can prevent other parties or combinations of parties from exercising individual control.Common control refers to the control shared over an arrangement in accordance with the relevant stipulations and the decision- making of related activities of the arrangement should not be made before the party sharing the right of control agrees the same.Joint venture arrangements are classified into joint operation and joint venture. A joint operation refers to those joint venture arrangements under which the joint venture is entitled to relevant assets and be responsible for relevant liabilities. A joint venture refers to a joint venture arrangement in which the participating parties only have rights to the net assets of the arrangement. (2) Accounting treatment for joint venture arrangements Participants in a joint operation shall recognize the following items related to their proportionate share in the joint operations and account for them in accordance with the Accounting Standards for Business Enterprises: 1) Recognize individually held assets and recognize jointly held assets based on their proportionate share; 2) Recognize individually incurred liabilities and recognize jointly incurred liabilities based on their proportionate share; 3) Recognize revenue from the sale of their share of the output of the joint operations; 4) Recognize their proportionate share of the revenue generated by the joint operations from the sale of output; 5) Recognize individually incurred expenses and recognize expenses of the joint operations based on their proportionate share.Participants in joint ventures shall account for their investments in joint ventures in accordance with Accounting Standards for Business Enterprises No. 2 - Long-term Equity Investments. 9. Determination criteria for cash and cash equivalents The term cash in the statement of cash flows refers to a company's cash on hand and deposits that are readily available for payment.Cash equivalents are short-term highly liquid investments that are readily convertible to known amounts of cash and subject to an insignificant risk of changes in value. 1262024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. 10. Foreign currency transactions and translation of foreign currency statements (1) Translation of foreign currency transactions Foreign currency transactions shall be translated into RMB upon initial recognition using an exchange rate that approximates the spot exchange rate on the transaction date. At the balance sheet date foreign currency monetary items shall be translated using the spot exchange rate on the balance sheet date. Exchange differences resulting from differences between the spot exchange rate on the balance sheet date and the spot exchange rate at initial recognition or the previous balance sheet date shall be recognized in profit or loss; foreign currency non-monetary items measured at historical cost shall continue to be translated using the exchange rate that approximates the spot exchange rate on the transaction date; foreign currency non-monetary items measured at fair value shall be translated using the spot exchange rate on the date the fair value is determined. The difference between the translated amount in the recording currency and the original recording currency amount shall be recognized in profit or loss or other comprehensive income based on the nature of the non-monetary items. (2) Translation of foreign-currency financial statements At the balance sheet date when translating the foreign currency financial statements of overseas subsidiaries the assets and liability items in the balance sheet shall be translated using the spot exchange rate on the balance sheet date; for owners' equity items except for the "undistributed profits" item all other items shall be translated using the spot exchange rate on the transaction date; the revenue and expense items in the income statement shall be translated using an exchange rate that approximates the spot exchange rate on the transaction date; all items in the statement of cash flows shall be translated at the exchange rate that approximates the spot exchange rate on the date the cash flows occurred. The difference arising from the translation of financial statements shall be recognized in the "other comprehensive income" item under shareholders' equity in the balance sheet. 11. Financial instruments (1) Recognition and derecognition of financial instruments The Company recognizes financial assets or financial liabilities when it becomes a party to financial instruments contracts.Financial assets bought and sold in the ordinary course are subject to recognition and derecognition using trade date accounting.The buying and selling of financial assets in the ordinary course refers to receiving or delivering financial assets within the time frame prescribed by laws regulations or common practices in accordance with the contractual terms. Trading date refers to the date on which the Company commits to buy or sell financial assets.Derecognition shall be applied to a financial asset (or a portion thereof or a group of similar financial assets) when the following conditions are meti.e. it shall be removed from the Company's accounts and balance sheet. 1) The contractual right to receive the cash flows of the financial assets has expired; 2) The financial assets has been transferred and meets the derecognition criteria for transfer of financial assets as described below. If the present obligation of a financial liability is fully or partially discharged the liability (or the discharged portion) is derecognized. If the Company (as the obligor) and the creditor enter into an agreement to assume a new financial liability to replace the existing financial liability and the contractual terms of the new financial liability are substantially different from those of the existing one the existing financial liabilities shall be derecognized and the new financial liability shall be recognized simultaneously. 1272024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. (2) Classification and measurement of financial assets At initial recognition the Company classifies financial assets into the following three categories based on its business model for managing financial assets and the contractual cash flows characteristics of the financial assets: financial assets measured at amortized costs financial assets measured at fair value with changes recognized in other comprehensive income and financial assets measured at fair value with changes recognized in profit or loss. Financial assets are initially recognized at fair value. For financial assets measured at fair value with changes recognized in profit or loss related transaction costs are directly recognized in profit or loss. For other categories of financial assets related transaction costs are included in their initial recognized amount. For accounts receivable arising from the sale of goods or provision of services without including or considering significant financing components the Company recognizes the consideration amount the Company expects to be entitled to receive as the initial recognized amount. The subsequent measurement of financial assets depends on their classification. 1) Financial assets measured at amortized cost A financial asset shall be classified as measured at amortized costs if it meets both of the following conditions: the Company's business model for managing the financial assets is to collect contractual cash flows and the contractual cash flows of the financial assets represent solely payments of principal and interest on the principal amount outstanding; the contractual terms of the financial assets stipulate that the cash flows generated on specified dates solely represent payments of principal and interest calculated based on the outstanding principal amount. For such financial assets the effective interest method is applied and their subsequent measurement is performed at amortized costs with gains or losses arising from their amortization or impairment recognized in profit or loss. 2) Investments in debt instruments measured at fair value with changes recognized in other comprehensive income A financial asset shall be classified as measured at fair value with changes recognized in other comprehensive income if it meets both of the following conditions: the Company's business model for managing the financial assets is both to collect contractual cash flows and to sell the financial assets and the contractual cash flows of the financial assets represent solely payments of principal and interest on the principal amount outstanding; the contractual terms of the financial assets stipulate that the cash flows generated on specified dates solely represent payments of principal and interest calculated based on the outstanding principal amount. For such financial assets fair value is used for subsequent measurement. The discount or premium is amortized using the effective interest method and recognized as interest income or expense. Except for impairment losses and exchange differences on foreign currency monetary financial assets recognized in profit or loss the fair value changes of such financial assets are recognized in other comprehensive income until the financial asset is derecognized at which time the cumulative gains or losses are reclassified to profit or loss. Interest income related to such financial assets shall be recognized in profit or loss. 3) Investments in equity instruments measured at fair value with changes recognized in other comprehensive income The Company irrevocably elects to designate certain non-trading equity instrument investments as financial assets measured at fair value with changes recognized in other comprehensive income. Dividend income related to such assets is recognized in profit or loss fair value changes are recognized in other comprehensive income and cumulative gains or losses arising from such changes are reclassified to retained earnings upon derecognition of the financial assets. 4) Financial assets measured at fair values through current profit or loss Financial assets other than those measured at amortized costs and those measured at fair value with changes recognized in other comprehensive incomes shall be classified as financial assets measured at fair value with changes recognized in profit or loss. At initial recognition financial assets may be designated as measured at fair value with changes recognized in profit or loss to 1282024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. eliminate or significantly reduce an accounting mismatch. For such financial assets fair value is used for subsequent measurement and all fair value changes are recognized in profit or loss.The Company shall reclassify all affected related financial assets if and only if it changes its business model for managing financial assets. (3) Classification and measurement of financial liabilities At initial recognition the Company's financial liabilities are classified into financial liabilities measured at amortized costs and financial liabilities measured at fair value with changes recognized in profit or loss.Financial liabilities that meet one of the following conditions may be designated at initial measurement to be measured at fair value with changes recognized in profit or loss: 1) the designation eliminates or significantly reduces accounting mismatch; 2) financial liabilities or a combination of financial assets and financial liabilities are managed and evaluated based on fair value according to the formal written documents outlining the Group's risk management or investment strategies and reports are provided to key officers within the Group based on this information; 3) The financial liabilities contain embedded derivative instruments that need to be separately split.The Company determines the classification of financial liabilities at initial recognition. For financial liabilities measured at fair value with changes recognized in profit or loss the related transaction costs are recognized directly in profit or loss. For other financial liabilities the related transaction costs are included in their initial recognized amount.Subsequent measurement of financial liabilities depends on their classification: 1) Financial liabilities measured at amortized costs For such financial liabilities subsequent measurement is conducted using the effective interest method at amortized costs and gains or losses arising from derecognition or amortization are recognized in profit or loss. 2) Financial liabilities measured at fair value with changes recognized in profit or loss Financial liabilities measured at fair value with changes recognized in profit or loss include financial liabilities held for trading (including derivatives that are financial liabilities) and those initially designated as measured at fair value with changes recognized in profit or loss. For such financial liabilities subsequent measurement is conducted at fair value and gains or losses arising from fair value changes as well as dividends and interest expenses related to these financial liabilities are recognized in profit or loss. (4) Offsetting of financial instruments Financial assets and financial liabilities are presented in the balance sheet at their net amounts after offsetting provided that the following conditions are met: there is a legally enforceable right to offset the recognized amounts and the right to offset is currently exercisable; there is a plan to settle on a net basis or simultaneously realize the financial assets and settle the financial liabilities. (5) Impairment of financial instruments 1) Impairment measurement and accounting treatment of financial instruments The Company shall conduct impairment treatment and recognize provision for loss based on expected credit losses for the following items. 1292024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. * Financial assets measured at amortized costs; * Accounts receivable and investments in debt instruments measured at fair value with changes recognized in other comprehensive income; * Contract assets as defined in Accounting Standards for Business Enterprises No. 14 - Revenue; * Lease receivables; * Loan commitments not classified as financial liabilities measured at fair value with changes recognized in profit or loss; * Financial guarantee contracts (except those measured at fair value with changes recognized in profit or loss or transfer of financial assets that do not meet derecognition criteria or continue involvement with the transferred financial assets).Expected credit losses refer to the weighted average of credit losses on financial instruments weighted by the risk of default occurring. Credit loss refers to the difference between all contractual cash flows receivable under the contract (discounted by the Company using the original effective interest rate) and all expected cash flows to be collected i.e. the present value of all cash shortfalls. Specifically for financial assets purchased or originated by the Company that have incurred a credit loss the discounting is based on the credit-adjusted effective interest rate of that financial assets.For financial assets purchased or originated by the Company that have incurred a credit loss the Company recognizes only the cumulative changes in expected credit losses over the entire expected life since initial recognition as the provision for loss on the balance sheet date.For accounts receivable that either do not contain a significant financing component or for which the Company does not consider the financing component in contracts with a term of one year or less the Company applies a simplified measurement approach to measure the provision for loss at an amount equal to the lifetime expected credit losses.For lease receivables and accounts receivable containing a significant financing component the Company applies a simplified measurement approach to measure the provision for loss at an amount equal to the lifetime expected credit losses.Except for financial assets measured under the aforementioned methods the Company assesses whether their credit risk has increased significantly since initial recognition at each balance sheet date. If the credit risk has increased significantly since the initial recognition the Company measures the provision for loss at an amount equal to the lifetime expected credit losses; if the credit risk has not increased significantly since initial recognition the Company measures the provision for loss at an amount equal to the expected credit losses within the next 12 months of the financial instruments.The Company utilizes available reasonable and supportable information including forward-looking information by comparing the risk of default occurring on the financial instruments as of the balance sheet date with the risk of default at initial recognition date to determine whether the credit risk of the financial instruments has increased significantly since initial recognition.As of the balance sheet date if the Company determines that the financial instruments only have low credit risk it is assumed that the credit risk of the financial instruments has not increased significantly since initial recognition.The Company assesses expected credit risk and measures expected credit losses on the basis of individual financial instruments or portfolios of financial instruments. When portfolios of financial instruments are used as the basis the Company groups the financial instruments into different portfolios based on common risk characteristics. 1302024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. The Company remeasures expected credit losses at each balance sheet date with the resulting increases or reversals in the provision for loss recognized as impairment losses or gains in profit or loss. For financial assets measured at amortized costs the provision for loss reduces the book value of these financial assets presented in the balance sheet; for debt investments measured at fair value with changes recognized in other comprehensive income the Company recognizes their provision for loss within other comprehensive income without reducing the book value of these financial assets. 2) Financial instruments for which expected credit risk is assessed and expected credit losses are measured on a portfolio basis For accounts receivable items such as notes receivable accounts receivable other receivables and contract assets if a customer's credit risk characteristics are significantly different from those of other customers in the portfolio or if the customer's credit risk characteristics have changed significantly the Company assesses the provision for bad debts on an individual basis for such receivables. Except for accounts receivable for which the provision for bad debts is assessed individually the Company groups accounts receivable into portfolios based on credit risk characteristics and calculates the provision for bad debts on a portfolio basis.Notes receivable accounts receivable and contract assets For notes receivable accounts receivable and contract assets whether there is a significant financing component or not the Company always measures its provision for loss at the amount equivalent to the expected credit losses during the entire duration.When the information on expected credit losses of a single financial asset or contract asset cannot be evaluated at a reasonable cost the Company divides the notes receivable accounts receivable and contract assets into portfolios according to the credit risk characteristics and calculates the expected credit losses on the basis of the portfolios. The basis for determining the portfolios is as follows: A. Notes receivable Portfolio 1 of notes receivable: bank acceptance bills Portfolio 2 of notes receivable: commercial acceptance bills B. Accounts receivable Portfolio 1 of accounts receivable: government payment portfolio Portfolio 2 of accounts receivable: portfolio of transactions with other related parties Portfolio 3 of accounts receivable: credit risk characteristic combination For the accounts receivable divided into portfolios the Company prepares the comparison table between the aging of accounts receivable and the rate of expected credit loss throughout the duration by reference to the experience of historical credit losses combining with the current situation and the forecast of future economic conditions and calculates the expected credit losses. The aging of accounts receivable is calculated from the date of recognition.C. Other receivables The Company classifies other receivables into several portfolios based on credit risk characteristics and calculates expected credit losses on the basis of portfolios. The basis for determining portfolios is as follows: Portfolio 1 of other receivables: portfolio of transactions with related parties within the consolidation scope 1312024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Portfolio 2 of other receivables: interest receivable portfolio Portfolio 3 of other receivables: portfolio of transactions with other related parties Portfolio 4 of other receivables: credit risk characteristic combination For other receivables classified as portfolios the Company calculates the expected credit losses through the default risk exposure and the rate of expected credit loss throughout the duration or in the next 12 months. For other receivables classified into portfolios by aging the aging is calculated from the date of recognition. (6) Transfer of financial assets If the Company has transferred substantially all the risks and rewards of the ownership of the financial assets to the transferee the financial assets will be derecognized; if it retains substantially all the risks and rewards of the ownership of the financial assets the financial assets will not be derecognized.If the Company neither transfers nor retains substantially all the risks and rewards of the ownership of the financial assets the treatment are as follows: if the Company gives up control of the financial assets the derecognition of the financial assets will be carried out with the recognition of the resulting assets and liabilities; if the Company has not given up control of the financial assets the relevant financial assets will be recognized to the extent of its continued involvement in the transferred financial assets and the relevant liabilities will be recognized accordingly. 12. Notes receivable Refer to the relevant notes to the financial statements V. 11 Financial instruments for details. 13. Accounts receivable Refer to the relevant notes to the financial statements V. 11 Financial instruments for details. 14. Receivables financing Not applicable. 15. Other receivables Refer to the relevant notes to the financial statements V. 11 Financial instruments for details. 16. Contract assets (1) Recognition methods and standards for contract assets COOEC presents contract assets or contract liabilities in the balance sheet based on the relationship between its performance of fulfillment obligations and customer payments. The consideration (except accounts receivable) that the Company is entitled to receive for the transfer of goods or provision of services to customers is presented as contract assets. (2) Determination methods and accounting treatments of expected credit losses of contract assets 1322024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. For contract assets that do not contain any significant financing component (including the financing component in contracts with a term of less than one year that is not considered under the Standards) as stipulated in Accounting Standards for Business Enterprises No. 14 - Revenue the Company adopts a simplified model of expected credit losses that is the provision for loss is always measured according to the amount of expected credit losses over the life of the instruments and the resulting increase or reversal of provision for loss is included in the current profit or loss as impairment losses or gains.For contract assets that contain significant financing components the Company chooses to use the simplified model of expected credit losses that is the provision for loss is always measured according to the amount of expected credit losses over the life of the instruments. 17. Inventories (1) Classification of inventories Inventories include development land development products development products intended for sale but temporarily leased transitional housing inventory materials inventory equipment and low-value consumables held for sale or consumption in the development and operation process as well as development costs in the development process. (2) Pricing method of inventories dispatched 1) The moving weighted average method is adopted for the dispatched materials. 2) During the development of the project the land used for development is included in the development costs of the project according to the floor area occupied by the development products. 3) The dispatched development products are accounted for by the specific identification method. 4) Development products and transitional housing that are temporarily leased for sale are amortized evenly over the expected service life of the Company's similar fixed assets. 5) If the public supporting facilities are completed earlier than the relevant development products after the completion of the public supporting facilities the public supporting facilities fee shall be allocated to the development costs of the relevant development project according to the floor area of the relevant development project; if the public supporting facilities are completed later than the relevant development products the public supporting facilities fee shall be accrued by the relevant development products first and the cost of the relevant development products shall be adjusted according to the difference between the actual amount and the accrued amount after the completion of the common facilities. (3) Determination basis of net realizable value of inventories On the balance sheet date the inventories are measured at the lower of cost or net realizable value and the provision for inventory depreciation is made at the difference where the cost of a single inventory is higher than the net realizable value. For the inventories that are directly used for sale the net realizable value is determined by the estimated selling price of the inventories minus the estimated selling and distribution expenses and related taxes during the normal production and operation process; For the inventories that need to be processed their net realizable net realizable value is determined in the normal course of production and operation by the estimated selling price of the finished products minus the estimated costs to be incurred upon completion estimated selling and distribution expenses and related taxes; on the balance sheet date if part of the same inventory has a contract 1332024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. price and other parts do not have a contract price its net realizable value shall be determined respectively and compared with its corresponding cost to determine the provision or reversal of provision for inventory depreciation amount. (4) Inventory system of inventories The inventory system of inventories is the perpetual inventory system. (5) Amortization method of low-value consumables and packaging materials 1) Low-value consumables They are amortized with the one-off write-off method. 2) Packaging materials They are amortized with the one-off write-off method. 18. Assets held for sale (1) Recognition criteria and accounting treatments of non-current assets held for sale or disposal groups The Company classifies non-current assets or disposal groups that meet the following conditions into the category of held for sale: 1) According to the practice of selling such assets or disposal groups in similar transactions they can be sold immediately under the current situation; 2) The sale is very likely to occur a resolution has been made on a sale plan and a firm purchase commitment has been obtained and the sale is expected to be completed within one year. Approval from relevant authorities or regulatory authorities has been obtained in accordance with relevant regulations. If the Company loses the right of control of its subsidiary due to reasons such as the sale of its investment in the subsidiary regardless of whether the enterprise retains part of the equity investment after the sale the entire investment in the subsidiary shall be classified as held for sale in the parent company's individual financial statements and all assets and liabilities of the subsidiary shall be classified as held for sale in the consolidated financial statements when the investment in the subsidiary to be sold meets the conditions for the classification as held for sale.The Company adjusts the estimated net residual value of the assets held for sale to the net amount reflecting its fair value less selling expenses (but not more than the original book value of the assets held for sale). The difference between the original book value and the adjusted estimated net residual value is included in the current profit or loss as asset impairment loss and the provision for impairment of assets held for sale is made at the same time. For the amount of asset impairment loss recognized by the disposal group held for sale the book value of the goodwill in the disposal group shall be deducted first and then the ratio of the book value of each non-current asset in the disposal group measured in accordance with the applicable standards shall be deducted in proportion to its book value.If the net amount of the fair value of the disposal group held for sale minus sales expenses increases on subsequent balance sheet dates the previously written-down amount shall be restored and reversed within the asset impairment loss of non-current assets recognized under the measurement provisions of this standard after being classified as held for sale. The reversed amount shall be included in the current profit or loss. The goodwill book value that has been offset and the asset impairment loss recognized before the non-current assets subject to the measurement provisions of the relevant standards are classified as held for sale shall not be reversed. The subsequent reversal amount of the asset impairment loss recognized for the disposal group held for sale shall be 1342024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. increased in proportion to its book value according to the ratio of the book value of each non-current asset in the disposal group that is subject to the measurement provisions of the relevant standards except for goodwill.No depreciation or amortization are made for the non-current assets held for sale and the assets in the disposal group held for sale; Interest and other expenses on liabilities in the disposal group held for sale continue to be recognized. For all or part of the investment in associates or joint ventures classified as held for sale accounting by equity method shall cease for the part classified as held for sale and accounting by equity method shall continue for the retained part (not classified as held for sale); the use of the equity method shall cease when the Company loses significant influence over the associates and joint ventures as a result of the sale.If a non-current asset or disposal group is classified as held for sale but later no longer meets the classification conditions for held for sale the Company shall stop classifying it as held for sale and measure it at the lower of the following two amounts: 1) The amount after adjusting the book value of the asset or disposal group before it is classified as held for sale for depreciation amortization or impairment that would have been recognized if it had not been classified as held for sale; 2) Recoverable amount. (2) Identification criteria of discontinued operations Discontinued operations refer to the component that can be separately distinguished and has been disposed of by the Company or classified by the Company as held for sale that meets one of the following conditions: 1) The component represents a separate major business or a sole major business area; 2) The component is a part of the associated plan on the intended disposal of an independent major business or a sole major business area; or 3) The component is a subsidiary acquired only for re-sale. (3) Presentation The Company presents the non-current assets held for sale or the assets in the disposal group held for sale in the balance sheet under the "assets held for sale" and the liabilities in the disposal group held for sale under the "liabilities held for sale".The Company presents the profit or loss of continuing operations and the profit or loss of discontinued operations in the income statement separately. For non-current assets or disposal group held for sale that do not meet the definition of discontinued operations their impairment losses reversal amounts and disposal profit or loss are presented as profit or loss from continuing operations. The impairment loss from discontinued operation reversed amount and other profit or loss from operation as well as profit or loss from disposal shall be presented as profit or loss from discontinued operation.A disposal group that is intended to be discontinued rather than sold and meets the conditions of the relevant components in the definition of discontinued operations is presented as discontinued operations from the date of the discontinuance of its use.For the discontinued operations presented in the current period the information originally presented as the profit or loss of continuing operations is re-presented as the profit or loss of the discontinued operations in the comparable accounting period in the current financial statements. If the discontinued operations no longer meet the conditions for classification as held for sale the 1352024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. information originally presented as profit or loss from discontinued operations is re-presented as the profit or loss from continuing operations in the comparable accounting period in the current financial statements. 19. Debt investments Not applicable 20. Other debt investments Not applicable 21. Long-term receivables Refer to the relevant notes to the financial statements V. 11 Financial instruments for details. 22. Long-term equity investments (1) Common control and judgment of significant influence If there is a shared control over an arrangement in accordance with relevant agreements and the relevant activities of the arrangement must be decided with the unanimous consent of the participants sharing the right of control it is recognized as common control. For determining whether there is a common control it is firstly to determine whether all participants or a combination of participants collectively control the arrangement and then determine whether the decision on the activities related to the arrangement must be unanimously agreed by the participants who collectively control the arrangement. If all participants or a group of participants must act in concert to decide on the relevant activities of an arrangement all participants or a group of participants are considered to collectively control the arrangement; if there are two or more combinations of participants that can collectively control an arrangement it does not constitute a common control. The protective rights enjoyed are not taken into account in determining whether there is a common control.Significant influence is recognized when there is the power to participate in the making decisions on the investees' financial and operating policies but no power to control or exercise common control with other parties over the formulation of such policies.When it is determined whether the investor can exercise significant influence on the investees the impact of the investor's direct or indirect holding of the investees' voting shares and the current executable potential voting rights held by the investor and other parties after assumed conversion to investees' equity shall be taken into consideration including the impact of the current convertible warrants share options and convertible corporate bonds issued by the investees.When the Company directly or indirectly owns more than 20% (including 20%) but less than 50% of the voting rights of the investees through its subsidiary it is generally considered to have a significant influence on the investees unless there is clear evidence that it cannot participate in the production and operation decision-making of the investees under such circumstances which means no significant influence; when the Company owns less than 20% (exclusive) of the shares of voting rights of the investees it is generally not considered to have significant influence on the investees unless there is clear evidence that it can participate in the production and operation decision-making of the investees and in such case it has a significant influence. 1362024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. (2) Determination of initial investment costs 1) If the combining party of long-term equity investments formed by business combinations under common control takes the payment of cash transfer of non-cash assets assumption of debts or issuance of equity securities as the consideration for the combination the share of the book value of the owners' equity of the combining party in the consolidated financial statements of the ultimate controller shall be taken as its initial investment cost on the combination date. The capital reserve (capital premium or equity premium) is adjusted for the difference between the initial investment cost of the long-term equity investments and the book value of the consideration paid for the combination or the total face value of the shares issued; If the capital reserve is insufficient the difference is adjusted against retained earnings.For long-term equity investments realized step by step by business combination under the same control the book owners' equity share of the combined party on the combination date calculated by the shareholding ratio shall be taken as the initial investment cost of the investment. The capital reserve (capital premium or equity premium) shall be adjusted according to difference between the initial investment cost and the sum of the book value of the original long-term equity investments plus the book value of the newly paid consideration for further shares acquired on the combination date; if the capital reserve is insufficient to be offset retained earnings shall be offset. 2) For long-term equity investments formed by business combination not under common control the fair value of the combination consideration paid on the acquisition date shall be used as the initial investment cost. 3) Except for long-term equity investments formed by business combination: if it is obtained by paying cash the actual purchase price paid shall be taken as its initial investment cost; if it is obtained by issuing equity securities fair value of equity securities issued will be used as its initial investment cost; if an investor invests the value stipulated in the investment contract or agreement shall be used as its initial investment cost (except if the value stipulated in the contract or agreement is unfair). (3) Subsequent measurements and recognition of profit or loss Long-term equity investments in which the Company can control the investees shall be accounted for by cost method in the individual financial statements of the Company; long-term equity investments with common control or significant influence adopt the accounting by equity method.When the cost method is adopted the long-term equity investments are priced at the initial investment cost. Except for the actual price paid when the investment is obtained or the cash dividends or profits included in the consideration that have been declared but not yet distributed the entitled cash dividends or profits declared by the investees are recognized as current investment income and whether the long-term investment is impaired is considered according to the relevant asset impairment policy at the same time.When the equity method is adopted if the initial investment cost of the long-term equity investments is greater than the fair value share of net identifiable assets of the investees that the investor is entitled to at the time of investment it shall be included in the initial investment cost of the long-term equity investments; if the initial investment cost of the long-term equity investments is less than the fair value share of net identifiable assets of the investees that the investor is entitled to at the time of investment the difference shall be included in the current profit or loss and the cost of the long-term equity investments shall be adjusted at the same time.When the equity method is adopted after the long-term equity investments are obtained the investment profit or loss and other comprehensive income shall be recognized according to the share of net profit or loss and other comprehensive income realized by the investees that should be enjoyed or shared and the book value of the long-term equity investments shall be adjusted. When the share of net profit or loss of the investees is recognized the net profit of the investees shall be adjusted and recognized on the basis 1372024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. of the fair value of the identifiable assets of the investees at the time of acquisition of the investment in accordance with the accounting policies and accounting period of the Company and offsetting the portion of internal transaction profit or loss between associates and joint ventures that belong to the investing enterprise according to the shareholding ratio (but if the internal transaction loss is an asset impairment loss it shall be recognized in full). The book value of the long-term equity investments shall be reduced according to the part to be distributed calculated according to the profits or cash dividends declared to be distributed by the investees. The Company recognizes the net loss incurred by the investees to the extent that the book value of the long-term equity investments and other long-term interests that substantially constitute the net investment in the investees are reduced to zero except that the Company is obliged to bear additional losses. For other changes in owners' equity of the investees other than net profit or loss the book value of the long-term equity investments are adjusted and included in the owners' equity.If the Company can have significant influence on or exercise common control over the investees due to additional investment or other reasons but does not constitute control the sum of the fair value of the original equity plus the newly increased investment cost shall be taken as the initial investment cost with the accounting by equity method on the conversion date. If the original equity is classified as non-trading equity instrument investment measured at fair value with changes recognized in other comprehensive income the accumulated fair value changes related to it originally included in other comprehensive income shall be transferred to retained earnings when changed to accounting by equity method.Where the common control or significant influence on the investees is lost due to the disposal of part of the equity investments or other reasons the remaining equity after disposal shall be accounted for in accordance with Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments on the date of loss of common control or significant influence and the difference between the fair value and the book value shall be included in the current profit or loss. For the other comprehensive income of the original equity investments recognized by adopting the accounting by equity method the accounting treatment shall be made on the same basis for the direct disposal of the relevant assets or liabilities by the investees when the accounting by equity method is terminated. other changes in owners' equity related to the original equity investments are transferred to the current profit or loss.If the control over the investees is lost due to the disposal of part of the equity investments or other reasons and the remaining equity after disposal can exercise common control or significant influence on the investees the accounting by equity method shall be adopted and the remaining equity shall be adjusted as if the accounting by equity method is adopted from the time of acquisition; if the remaining equity after disposal cannot exercise common control or significant influence on the investees it shall be accounted for in accordance with the relevant provisions of Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments and the difference between its fair value and book value on the date of loss of control shall be included in the current profit or loss.If the Company's shareholding ratio decreases due to the capital increase of other investors resulting in the loss of control but with the ability to implement common control or exert significant influence over the investees the Company's share of the investees' increase in net assets due to capital increase and share expansion shall be recognized according to the new shareholding ratio and the difference between the original book value of the long-term equity investments corresponding to the decrease in the shareholding ratio that should be carried forward shall be included in the current profit or loss; then adjustments shall be made as if the accounting by equity method had been applied from the date of investment acquisition according to the new shareholding ratio. (4) Impairment test methods and methods for provision for impairment For investments in subsidiaries associates and joint ventures please refer to the relevant notes to the financial statements V. 28 Impairment of long-term assets for the method of asset impairment. 1382024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. 23. Investment properties Measurement mode of investment properties Measurement by cost method Depreciation and amortization methods (1) Investment properties include leased land use right land use right held for transfer upon appreciation and leased buildings. (2) The investment properties are initially measured at cost subsequent measurement is made by using the cost model and depreciation or amortization is provided by using the same method as that for fixed assets and intangible assets. On the balance sheet date if there is any sign that the investment properties are impaired the corresponding provision for impairment shall be made according to the difference between the book value and the recoverable amount. The difference between the disposal proceeds of an investment property (through sale transfer retirement or damage) and its book value net of related taxes and fees is recognized in current profit or loss. 24. Fixed assets (1) Recognition conditions Fixed assets refer to tangible assets held for the production of goods provision of labor services leasing or operation and management and with a service life of more than one accounting year. Fixed assets are recognized only when the economic benefits associated with them are likely to flow into the enterprise and their costs can be measured reliably. Fixed assets are initially measured at the actual cost at the time of acquisition. Subsequent expenses related to fixed assets are included in the cost of fixed assets when the economic benefits related to them are likely to flow into the Company and their cost can be measured reliably; the daily repair costs of fixed assets that do not meet the conditions for capitalization of subsequent expenses of fixed assets are included in the current profit or loss or in the cost of related assets according to the beneficiary object when incurred. For the replaced part its book value is derecognized. (2) Depreciation method Annual depreciation Type Depreciation method Depreciation life Residual value rate rate Buildings and Straight-line method 20-25 5-10 3.6-4.75 constructions Means of Straight-line method 5 5 19 transportation Other equipment Straight-line method 5 5 19 Machinery equipment Straight-line method 5 5 19 Renovation of fixed Straight-line method 5 - 20 assets The Company's fixed assets are depreciated by straight-line method. The provision for depreciation of fixed assets commences from the month following the date they reach the working condition for intended use and ceases when they are derecognized or classified as non-current assets held-for-sale. Without considering the provision for impairment the Company determines the annual depreciation rate of each type of fixed assets by category estimated service life and estimated residual value of the fixed assets as above.Among them the depreciation rate for the fixed assets with provision for impairment already made shall be calculated and determined by deducting the accumulated amount of provision for asset impairment. 1392024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. 25. Construction in progress Not applicable 26. Borrowing costs (1) Recognition principles of capitalization of borrowing costs If borrowing costs incurred by the Company can be directly attributed to the acquisition construction or production of assets eligible for capitalization they shall be capitalized and included in the cost of the related assets; Other borrowing costs are recognized as expenses when incurred and included in the current profit or loss. (2) Capitalization period of borrowing costs 1) The capitalization of borrowing costs shall commence when the following conditions are simultaneously met: * the asset expenditure has been occurred; * the borrowing costs have been occurred; * the acquisition construction or production activities that are necessary to prepare the assets for their intended use or sale have begun. 2) If an asset that meets the capitalization conditions is abnormally interrupted during the acquisition construction or production process and the interruption lasts for more than 3 months the capitalization of borrowing costs will be suspended; The borrowing costs incurred during the interruption period are recognized as expenses and included in the current profit or loss until the acquisition construction or production of the asset restarts. (3) When the assets purchased constructed or produced that meet the capitalization conditions reach the intended usable or salable state the capitalization borrowing costs will cease. (3) Rate and amount of capitalization of borrowing costs If a special loan is borrowed for the purpose of purchasing constructing or producing assets that meet the capitalization conditions interest expenses actually incurred on the special loan in the current period (including the amortization of discounts or premiums determined according to effective interest method) minus the unused borrowed funds The amount of interest that should be capitalized is determined based on the amount of interest income earned from depositing in a bank or investment income earned from temporary investments; where general borrowings are used for acquiring and constructing or producing assets eligible for capitalization the expenses of general borrowings to be capitalized should be calculated by multiplying the weighted average of asset disbursements of the part of accumulated asset disbursements exceeding special borrowings by the capitalization rate of used general borrowings. The capitalization rate is calculated and recognized as per the weighted average interest rate of general borrowing. 27. Biological assets Not applicable 28. Oil and gas assets Not applicable 1402024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. 29. Intangible assets (1) Service life and basis for determination estimates amortization method or review procedure 1) Intangible assets include land use right software right of use etc. are initially measured at cost and the service life is analyzed and judged when the intangible assets are obtained. 2) Intangible assets with limited service life shall be amortized systematically and reasonably within the service life according to the expected realization method of the economic benefits related to the intangible assets. If the expected realization method cannot be reliably determined straight-line method shall be adopted for amortization. The specific periods are as follows: Item Amortization period (years) Land use rights Statutory use period of land use right Right of use of software 5 Intangible assets with uncertain service life are not amortized and the Company reviews the service life of such intangible assets in each accounting period. If different from the previous estimate the original estimate is adjusted and treated as changes in accounting estimates. 3) For the method of asset impairment provision for intangible assets please refer to the relevant notes to the financial statements V. 28 Impairment of long-term assets for details. (2) Scope of R&D expenditures and related accounting treatments 1) Scope of R&D expenditures The Company classifies all expenses directly related to the R&D activities as R&D expenditures including employee compensation of R&D personnel material input costs depreciation costs and amortization expenses. 2) Accounting treatments related to R&D expenditures Expenditures in the research stage of internal research and development projects are included in the current profit or loss when incurred. Expenditures in the development phase of internal research and development projects are recognized as intangible assets if the following conditions are met: * it is technically feasible to complete the intangible assets so that they can be used or sold; * there is an intention to complete the intangible assets and use or sell them; * the means of generating economic benefits by intangible assets including being able to prove that there is a market for the products produced by applying the intangible assets or the intangible assets having their own market and intangible assets to be used internally being able to prove their usefulness; * It is able to finish the development of the intangible assets and able to use or sell the intangible assets with the support of sufficient technologies financial resources and other resources; * The expenditure attributable to the intangible asset during its development phase can be measured reliably. 30. Impairment of long-term assets For long-term equity investments investment properties measured by the cost model fixed assets construction in progress right- of-use assets intangible assets with limited service life goodwill and other long-term assets the Company shall on the balance sheet date make a judgment on whether there is any indication that the assets may have impairment. For goodwill and intangible 1412024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. assets with uncertain service life arising from business combination the impairment test shall be conducted every year regardless of whether there are any indications of impairment. The impairment test shall be carried out for goodwill in combination with the asset group or combination of asset groups related to it.If there are any of the following signs it indicates that the asset may have impairment: (1) The market value of the asset has fallen sharply in the current period and the decline is obviously higher than the expected decline due to the passage of time or normal use; (2) the economic technical or legal environment in which the enterprise operates and the market where the assets are located have undergone or will undergo significant changes in the current period or in the near future which will adversely affect the enterprise; (3) the market interest rate or the rate of return on investment in other markets has increased in the current period thus affecting the discount rate of the enterprise in calculating the present value of the expected future cash flows of the asset resulting in a significant reduction in the recoverable amount of the asset; (4) there is evidence showing that the asset is obsolete or its substance has been damaged; (5) the asset has been or will be idle terminated for use or planned to be disposed ahead of schedule; (6) evidence from the internal reports of the enterprise shows that the economic performance of the asset has been or will be lower than expected such as the net cash flows or operating profit (or loss) generated by the asset is far lower (or higher) than the estimated amount; (7) other indications that the asset may have impairment.Where there is any indication of impairment of assets the recoverable amount shall be estimated. If the measurement results of recoverable amount indicate that the recoverable amount of the asset is lower than its book value the book value of the asset shall be written down to the recoverable amount and the amount written down shall be recognized as the asset impairment loss and included in the current profit or loss and the corresponding provision for asset impairment shall be made at the same time. The asset impairment loss will not be reversed in subsequent accounting periods once recognized.For impairment test of goodwill the book value of goodwill arising from business combination shall be amortized to the relevant asset group according to a reasonable method form the acquisition date; where it is difficult to be allocated to the relevant assets group it shall be allocated to the relevant portfolio of asset groups. The relevant asset group or portfolio of asset groups is the asset group or portfolio of asset groups that can benefit from the synergy of the business combination and is not larger than the reporting segment determined by the Company.When conducting the impairment test if there is any indication of impairment in the asset group or profile of asset groups related to goodwill the impairment test shall be conducted first for the asset group or profile of asset groups excluding goodwill the recoverable amount shall be calculated and the corresponding impairment losses shall be recognized. Then the impairment test shall be conducted for the asset group or profile of asset groups containing goodwill and the book value and recoverable amount shall be compared. If the recoverable amount is lower than the book value the impairment losses of goodwill shall be recognized. 31. Long-term deferred expenses Long-term deferred expenses refer to various expenses that have already occurred but should be borne by the current period and future periods with an amortization period of over 1 year (excluding 1 year). Long-term deferred expenses are recorded at the actual amount incurred and are amortized evenly over the expected benefit period. If a long-term deferred expense item cannot benefit future accounting periods all the amortized value of the item that has not yet been amortized will be fully transferred to the current profit or loss. 1422024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. 32. Contract liabilities COOEC presents contract assets or contract liabilities in the balance sheet based on the relationship between its performance of fulfillment obligations and customer payments. The Company's obligation to transfer goods or provide services to customers for consideration received or receivable is presented as contract liabilities. 33. Employee compensation (1) Accounting treatments of short-term compensation During the accounting period when employees provide services for the Company the short-term compensation actually incurred is recognized as a liability and included in the current profit or loss or related asset costs. (2) Accounting treatments of post-employment benefits Post-employment benefits are divided into defined contribution plans and defined benefit plans. 1) During the accounting period when employees provide services for the Company the amount payable calculated according to the defined contribution plans is recognized as a liability and included in the current profit or loss or related asset costs. 2) Accounting treatments of defined benefit plans usually includes the following steps: * According to the expected cumulative benefit unit method unbiased and mutually consistent actuarial assumptions are used to estimate relevant demographic variables and financial variables measure the obligations arising from the defined benefit plans and determine the period to which the relevant obligations belong. At the same time the obligations arising from the defined benefit plans shall be discounted to determine the present value of the defined benefit plan obligations benefit plans and the current service cost; * If there are assets under the defined benefit plans the deficit or surplus resulting from the present value of the defined benefit plan obligations less the fair value of the defined benefit plan assets is recognized as a net liability or net asset under defined benefit plans. If there is a surplus under the defined benefit plans the net assets of the defined benefit plans shall be measured at the lower of the surplus or asset ceiling of the defined benefit plans; * At the end of the period the employee compensation costs arising from the defined benefit plans are recognized as service costs net interest on net liabilities or net assets under defined benefit plans and changes arising from the re-measurement of net liabilities or net assets under defined benefit plans. The service costs and net interest on net liabilities or net assets under defined benefit plans are included in the current profit or loss or related asset costs and the changes arising from the re-measurement of net liabilities or net assets under defined benefit plans are included in other comprehensive income and are not allowed to be reversed to profit or loss in subsequent accounting periods but the amount recognized in other comprehensive income can be transferred within the scope of equity. (3) Accounting treatments of dismissal benefits For dismissal benefits provided to employees employee compensation liabilities arising from dismissal benefits are recognized at the earlier of the following dates and included in the current profit or loss: 1) when the Company cannot unilaterally withdraw the 1432024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. dismissal benefits provided due to the termination of labor relations plan or layoff proposal; 2) when the Company recognizes the costs or expenses related to the restructuring involving the payment of dismissal benefits. (4) Accounting treatments of other long-term employee benefits If other long-term benefits provided to employees meet the conditions of defined contribution plans they shall be accounted for in accordance with the relevant provisions of defined contribution plans; other long-term benefits shall be accounted for in accordance with the relevant provisions of the defined benefit plans. In order to simplify the relevant accounting treatment the employee compensation costs arising therefrom shall be recognized as the total net amount of service costs net liabilities or net assets of other long-term employee benefits and changes arising from the re-measurement of net liabilities or net assets of other long-term employee benefits and shall be included in the current profit or loss or related asset costs. 34. Estimated liabilities (1) When an obligation related to the contingency become the present obligation of the Company and the performance of such obligation is likely to result in an outflow of economic benefits from the Company and the amount of such obligation can be measured reliably the Company recognizes it as estimated liabilities. (2) The Company conducts the initial measurement of the estimated liabilities according to the best estimate of the expenses required for the performance of the relevant present obligations and comprehensively considers the risks uncertainties time value of money and other factors related to contingencies. If the impact of the time value of money is significant the best estimate shall be determined by discounting the relevant future cash flows. The Company reviews the book value of the estimated liabilities on the balance sheet date and adjusts the book value to reflect the current best estimate. 35. Share-based payments Not applicable 36. Preferred shares perpetual bonds and other financial instruments Not applicable 37. Revenue Accounting policies adopted for revenue recognition and measurement disclosed by business type (1) Recognition of revenue The Company's revenue mainly includes real estate sales revenue property management revenue software sales revenue rental property revenue (see (XXXIX) Lease for details) etc.The Company recognizes revenue when it fulfills its performance obligations in the contract that is the revenue is recognized when the customer obtains the right of control over relevant goods. Obtaining right of control over relevant goods means being able to direct the use of the goods and obtain almost all economic benefits from them. 1442024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. (2) The Company determines that the nature of the relevant revenue obligations is "performance obligations performed within a certain period of time" or "performance obligations performed at a certain time point " based on the relevant provisions of the revenue standards and recognizes revenue in accordance with the following principles. 1) If the Company meets one of the following conditions it is considered to fulfill its performance obligations within a certain period of time: * The customer obtains and consumes the economic benefits brought by the Company's performance at the same time as the Company performs the contract.* The customer can control over the assets under construction during the Company's performance.* The assets produced during the performance of the Company have irreplaceable uses and the Company is entitled to collect payments for the accumulated performance completed to date throughout the contract period.For performance obligations performed within a certain period the Company will recognize the revenue based on the performance progress during that period of time except where the performance progress cannot be reasonably determined. Considering the nature of the goods the Company determines the appropriate performance progress by the output method or the input method 2) For performance obligations that are not performed within a certain period of time and are performed at a certain time point the Company recognizes revenue at the time point when the customer obtains the control over relevant goods.When determining whether a customer has obtained control over goods the Company considers the following indications: * The Company has the current right to receive the payment for the goods that is the customer has the current obligation to pay for the goods.* The Company has transferred the legal ownership of the goods to the customer that is the customer possess the legal ownership of the goods.* The Company has physically transferred the goods to the customer that is the customer has physically taken possession of the goods.* The Company has transferred the significant risks and rewards of ownership of the goods to the customer that is the customer has obtained the significant risks and rewards of ownership of the goods.* The customer has accepted the goods.* Other indications showing that the customer has obtained control over goods. (3) Specific policies for the Company's revenue recognition 1) Specific methods for recognition of real estate sales revenue Realization of sales revenue shall be recognized when following conditions are met simultaneously: the developed product has been completed and accepted; the sales contract has been signed and the obligations stipulated in the contract have been fulfilled; the main risks and rewards of ownership of the developed product have been transferred to the buyer; the Company no longer retains the continued management rights usually associated with the ownership and effective control over the sold developed product; the amount of revenue can be measured reliably; the relevant economic benefits are likely to flow in; the relevant costs 1452024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. incurred or to be incurred can be measured reliably. If the real estate construction has been accepted (with the completion acceptance report obtained) an irreversible sales contract has been signed and the buyer's payment certificate has been obtained (down payment and bank mortgage received in full if bank mortgage is involved; otherwise full housing payment received) the revenue is recognized at the earlier of the delivery date specified in the delivery notice (delivery is deemed completed if the formalities are not completed within the specified time limit due to the owner's reasons) and the actual time of taking over by the owner. 2) Specific methods for recognition of property management revenue Revenue from the property management services provided by the Company shall be recognized according to the progress of the property services provided. 3) Specific methods for recognition of revenue from rental properties Revenue shall be recognized in accordance with the lease standards and the Company shall recognize the revenue in the lease term agreed in the lease contract by straight-line method or other reasonable methods. 4) Software sales revenue * Recognition and measurement method for sales revenue from customized software and independent software products Customized software refers to the software specially designed developed according to the actual needs of the user based on a thorough field investigation of the user's business in accordance with the software development contract signed with the customer.Such software is not universal. Only when the goods produced by the Company in the performance process have irreplaceable uses and the Company has the right to receive payments for the accumulated performance completed so far during the entire contract period the revenue will be recognized over a period of time according to the progress of the completed performance obligations during the contract period. The progress of the completed performance obligations shall be determined according to the ratio of the actual contract costs incurred to complete the performance obligations to the estimated total cost of the contract. Otherwise the revenue shall be recognized when the customer obtains the right of control over the relevant product.If a sales contract is signed on independent software products between the Company and the customer and the customer directly purchases the standard version of the software that is the real estate and facility management platform. The implementation personnel deploy the corresponding module according to the customer's needs which is a performance obligation to be performed at a certain time point. The Company will recognize the revenue after delivery of the product and the customer has accepted the product.* Recognition and measurement method for revenue from system integration contract System integration includes the sales and installation of purchased goods and software products. The system has been installed and debugged and has been put into trial use or the purchaser's preliminary inspection report has been obtained; the economic benefits associated with the transaction can flow into the enterprise; the revenue is recognized when the relevant revenue and costs can be measured reliably.* Recognition and measurement method of technical service revenue Technical service mainly refers to the business of providing consulting implementation and after-sales service of products to customers according to contract requirements. If the service period is agreed in the contract it shall be regarded as the performance 1462024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. obligations to be performed within a certain period of time. During the service provision period the revenue shall be recognized according to the service period agreed in the contract and the service settled with the customer. 5) Other business revenue is recognized when the performance obligations in the contract are fulfilled that is when the customer obtains the relevant control over goods according to the relevant contracts or agreements. (4) Measurement of revenue The Company shall measure revenue based on the transaction price allocated to each individual performance obligation. When determining the transaction prices the Company considers the impact of factors such as variable consideration significant financing components in the contract non-cash consideration and consideration payable to customers. 1) Variable consideration The Company determines the best estimate of a variable consideration based on the expected value or the most likely amount but the transaction prices containing a variable consideration shall not exceed the amount of accumulated recognized revenue that is highly unlikely to be significantly reversed when the relevant uncertainty is eliminated. When an enterprise evaluates whether a major reversal of accumulated recognized revenue is very unlikely to occur it should also consider the possibility and proportion of revenue reversal. 2) Significant financing component If there is a significant financing component in the contract the Company shall determine the transaction prices according to the payable amount that is assumed to be paid in cash by the customer when the customer obtains the right of control over goods. The difference between the transaction price and the contract consideration shall be amortized using effective interest method during the contract period. 3) Non-cash consideration If the customer pays non-cash consideration the Company shall determine the transaction price according to the fair value of the non-cash consideration. If the fair value of the non-cash consideration cannot be reasonably estimated the Company determines the transaction prices indirectly by referring to the stand-alone selling prices it promises for transferring the goods to the customer. 4) Consideration payable to customers For consideration payable to customers the consideration payable should be offset against the transaction prices and should offset the current revenue at the later of the recognition of relevant revenue and the payment (or commitment to pay) of the customer consideration except for the consideration payable to customers for obtaining other clearly distinguishable goods from customers.Where the consideration payable to a customer is for the purpose of obtaining other clearly distinguishable goods from the customer the purchased goods shall be recognized in a manner consistent with other purchases by the Company. If the consideration payable by an enterprise to a customer exceeds the fair value of clearly distinguishable goods obtained from the customer the excess amount shall be offset against the transaction prices. If the fair value of clearly distinguishable goods obtained from customers cannot be reasonably estimated the enterprise shall offset the full amount of the consideration payable to customers against the transaction prices.Different revenue recognition methods and measurement methods involved in the use of different business models for similar business 1472024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. 38. Contract costs Contract costs are divided into contract performance costs and contract acquisition costs.If the cost incurred by the Company to perform the contract meet the following conditions at the same time it shall be recognized as an asset as the contract performance cost: (1) The cost is directly related to a current contract or an expected contract to be obtained including direct labor direct materials manufacturing overhead (or similar expenses) costs expressly borne by the customer and other costs incurred solely due to the contract; (2) The cost increases the resources that the enterprise will use to fulfill its performance obligations in the future; (3) Such cost is expected to be recovered. If the incremental costs incurred by the Company to obtain the contract are expected to be recovered the incremental costs shall be recognized as an asset as the contract acquisition cost ; however if the asset amortization period does not exceed one year it can be included in the current profit or loss when it occurs.Assets related to the contract costs are amortized on the same basis as the recognition of the revenue of the goods or services related to the asset.If the book value of the assets related to the contract costs is higher than the difference between the following two items the Company will make provision for impairment for the excess and recognize it as asset impairment loss: (1) The remaining consideration expected to be obtained by the transfer of goods or services related to the assets; (2) The estimated cost to be incurred for the transfer of the relevant goods or services. If the above provision for asset impairment is subsequently reversed the book value of the asset after the reversal shall not exceed the book value of the asset on the reversal date under the assumption that no provision for impairment is made. 39. Government grants (1) Government grants are recognized when the following conditions are met at the same time: 1) the Company can meet the conditions attached to the government grants; 2) the Company can receive government grants. The government grants considered as monetary assets are measured at the amount received or receivable. If government grants are non-monetary assets they shall be measured at fair value; if the fair value cannot be obtained reliably it shall be measured at the nominal amount. (2) Judgment basis and accounting treatments of asset-related government grants Government grants used for the acquisition construction or otherwise forming long-term assets as specified in government documents shall be classified as asset-related government grants. If there is no relevant clear stipulation in the government document the judgment shall be made on the basis of the basic conditions that must be met to obtain the subsidy and if the basic condition is forming long-term assets through purchase construction or other means it shall be deemed as asset-related government grants. Asset-related government grants shall be used to offset the book value of relevant assets or recognized as deferred income. If the asset-related government grants are recognized as deferred income they shall be included in the profit or loss by stages in a reasonable and systematic manner within the service life of the relevant assets. Government grants measured 1482024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. according to the nominal amount are directly included in current profit or loss. If the relevant assets are sold transferred scrapped or damaged before the end of their service life the undistributed balance of relevant deferred income will be transferred to the profit or loss of the current period of asset disposal. (3) Judgment basis and accounting treatments of income-related government grants Government grants other than those related to assets shall be classified as income-related government grants. For government grants that contain both asset-related parts and income-related parts if it is difficult to distinguish whether they are asset-related or income-related they will be classified as income-related government grants as a whole. Income-related government grants used to compensate for relevant costs or losses in subsequent periods shall be recognized as deferred income and shall be included in the current profit or loss or used to offset relevant costs during the period when relevant costs or losses are recognized; if they are used to compensate the relevant costs or losses incurred they shall be directly included in the current profit or loss or used to offset the relevant costs. (4) Government grants related to the daily operating activities of the Company shall be included in other income or offset against relevant costs according to the essence of economic business. Government grants unrelated to the daily activities of the Company shall be included in the non-operating revenue or expenditure. If a recognized government grant needs to be returned the book value of the relevant asset shall be adjusted if the initial recognition of the grant offset the asset's book value; if there is a relevant deferred income balance the book balance of the relevant deferred income shall be offset and the excess shall be included in the current profit or loss; if it falls under other circumstances it shall be directly included in the current profit or loss. 40. Deferred tax assets/deferred tax liabilities (1) According to the temporary differences between the book value of assets and liabilities and their tax bases (if the tax base of items not recognized as assets and liabilities can be determined in accordance with tax laws the difference between the tax base and the book value) the deferred tax assets or deferred tax liabilities are calculated and recognized according to the applicable tax rate during the period when the assets are expected to be recovered or the liabilities are settled. (2) Deferred tax assets are recognized to the extent of the taxable income that is likely to be obtained to offset the deductible temporary differences unless the deductible temporary differences arise from the following transactions: 1) The transaction is not a business combination and the transaction does not affect accounting profit or taxable income (or deductible losses) when it occurs; 2) For deductible temporary differences related to subsidiaries joint ventures and investments in associates the corresponding deferred tax assets shall be recognized if the following conditions are met at the same time: the temporary differences are likely to be reversed in the foreseeable future and the taxable income used to offset the deductible temporary differences is likely to be obtained in the future.On the balance sheet date if there is conclusive evidence indicating that sufficient taxable income is likely to be obtained in the future period to offset the deductible temporary differences deferred tax assets that have not been recognized in previous accounting periods is recognized. (3) All taxable temporary differences are recognized as relevant deferred tax liabilities except for taxable temporary differences arising in the following transactions: 1492024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. The initial recognition of goodwill or the initial recognition of assets or liabilities arising from transactions with the following characteristics: the transaction is not a business combination and the transaction does not affect accounting profit or taxable income (or deductible losses) when it occurs.Taxable temporary differences related to investments in subsidiaries joint ventures and associates provided that the timing of the reversal of these temporary differences can be controlled and the temporary differences are unlikely to be reversed in the foreseeable future. (4) On the balance sheet date the book value of deferred tax assets is reviewed. If it is likely to earn sufficient taxable income in the future to offset the benefits of deferred tax assets the book value of deferred tax assets is written down. When it is likely to earn sufficient taxable income the written down amount is reversed. (5) The Company's current income tax and deferred income taxes are included in the current profit or loss as income tax expenses or income but do not include income tax arising from the following circumstances: 1) business combination; 2) transactions or events directly recognized in the owners' equity. 41. Lease (1) Accounting treatments for leases in which the Company is the lessee On the lease commencement date the Company recognizes leases that do not exceed 12 months and do not include purchase options as short-term leases; if the single leased assets are new and with a low value the leases are recognized as leases of low value assets. If the Company subleases or expects to sublease the leased assets the original leases shall not be recognized as leases of low value assets.For all short-term leases and leases of low value assets the Company during each period of the lease term includes the lease payments into the relevant asset cost or the current profit or loss according to the straight-line method.Except for the above-mentioned short-term leases and leases of low value assets with simplified treatment the Company recognizes the right-of-use assets and lease liabilities for the lease on the lease commencement date. 1) Right-of-use assets Right-of-use assets are initially measured at cost which includes: 1) the initial measurement amount of the lease liabilities; 2) the lease payments made on or before the lease commencement date or the relevant amount after deducting the lease incentive already enjoyed if any; 3) initial direct costs incurred by the lessee; 4) the costs expected to be incurred by the lessee for dismantling and removing the leased assets restoring the site where the leased assets are located or restoring the leased assets to the condition agreed in the lease terms.The Company depreciates the right-of-use assets according to the straight-line method. If it can be reasonably determined that the ownership of leased assets will be acquired upon the expiration of the lease term the Company depreciates the leased assets over their remaining service life. If it cannot be reasonably determined that the ownership of leased assets will be acquired upon the expiration of the lease term the Company depreciates the leased assets during the shorter of the lease term and the remaining service life of the leased assets. 2) Lease liabilities 1502024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. On the lease commencement date the Company recognizes the present value of the unpaid lease payments as lease liabilities.When calculating the present value of lease payments the interest rate implicit in lease is used as the discount rate. If the implicit interest rate of the lease cannot be determined the incremental borrowing rate of the Company is used as the discount rate. The difference between the lease payments and its present value is recognized as unrecognized financing expenses and the interest expenses are recognized at the discount rate of the present value of the recognized lease payments in each period of the lease term and included in the current profit or loss. Variable lease payments not included in the measurement of lease liabilities are included in the current profit or loss when actually incurred.After the lease commencement date the Company remeasures the lease liability based on the present value of the changed lease payments in case of any change in below items: actual fixed payment amount estimated amount payable of the guaranteed residual value the index or ratio used to determine the lease payments or the evaluation result or actual exercise of the purchase option renewal option or termination option. In such cases the book value of the right-of-use assets is also adjusted accordingly. If the book value of the right-of-use assets has been reduced to zero but the lease liabilities still need to be further reduced the remaining amount is included in the current profit or loss.If there is a modification in the lease and the following conditions are met simultaneously the Company accounts for the lease modification as a separate lease: * the lease change expands the lease scope by adding the right of use on one or more leased assets; * the increased consideration is equivalent to the amount of the separate price of the expanded part of the lease scope adjusted according to the contract conditions.If the lease modification is not accounted for as a separate lease on the effective date of the lease modification the Company re- apportions the consideration of the modified contract re-determines the lease term and re-measures the lease liabilities at the present value calculated at the modified lease payments and the revised discount rate. If a lease modification results in a reduced scope of the lease or a shortened lease term the Company reduces the book value of the right-of-use assets accordingly and recognizes the gain or loss related to the partial or complete termination of leases in current profit or loss. If there are other lease modifications that result in a re-measurement of lease liabilities the Company adjusts the book value of right-of-use assets accordingly. (2) Accounting treatments for leases in which the Company is the lessor On the lease commencement date the Company classifies leases that have essentially transferred almost all risks and rewards related to the ownership of leased assets as financing leases while all other leases are classified as operating leases. 1) Operating leases During each period of the lease term the Company recognizes the lease receipts as rental income according to the straight-line method and the initial direct costs incurred in connection with the operating leases are capitalized and amortized on the same basis as the recognition of rental income and included in the current profit or loss in installments. The variable lease payments related to operating leases obtained by the Company but not yet included in the lease receipts are included in the current profit or loss when actually incurred. 2) Financing leases On the lease commencement date the Company recognizes the financing lease receivables according to the net lease investment (the sum of the unguaranteed residual value and the present value of the lease receipts not received on the lease commencement date discounted at the interest rate implicit in lease) and derecognizes the financing lease assets. During each period of the lease term the Company calculates and recognizes the interest income at the interest rate implicit in lease. 1512024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. The variable lease payments obtained by the Company but not yet included in the measurement of net lease investment are included in the current profit or loss when actually incurred. 3) Lease modification In case of any modifications in operating leases the Company accounts for the modified lease as a new lease from the effective date of the modification and the advance or receivable lease receipts related to the lease before the modification is regarded as the receipt amount of the new lease.If there is a modification in the financing lease and the following conditions are met simultaneously the Company accounts for the modification as a separate lease: * the modification expands the scope of the lease by adding the right of use of one or more leased assets; * the increased consideration is equivalent to the amount of the separate price of the expanded part of the lease scope adjusted according to the contract conditions.If the modification in the financing lease is not accounted for as a separate lease the Company treats the modified lease respectively according to the following circumstances: * if the modification takes effect on the lease commencement date and the lease is classified as operating leases the Company accounts for it as a new lease from the effective date of the lease modification and takes the net lease investment before the effective date of the lease modification as the book value of the leased assets; * if the modification takes effect on the lease commencement date the lease will be classified as a financing lease and the Company accounts for it in accordance with the provisions of Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments on modifying or renegotiating the contract. 4) Sublease When the Company acts as a sublease lessor the original lease contract and the sublease contract are accounted for separately according to the accounting treatment requirements of the lessee and the lessor. If the original lease is a short-term leases and simplified accounting treatments have been adopted the sublease is classified as operating leases. (3) Sale and leaseback The Company in accordance with the provisions of Accounting Standards for Business Enterprises No. 14 - Revenue evaluates and determines whether the transfer of assets in the sale and leaseback transactions is a sale.If the transfer of assets in the sale and leaseback transactions is a sale the lessee measures the right-of-use assets arising from the sale and leaseback according to the part of the book value of the original assets related to the right of use obtained from the leaseback and only recognizes the relevant gains or losses on the rights transferred to the lessor. The lessor accounts for asset purchase in accordance with other applicable accounting standards for business enterprises and conducts accounting treatment for the asset lease in accordance with Accounting Standards for Business Enterprises No. 21 - Leases.If the transfer of assets in the sale and leaseback transactions is not a sale the lessee continues to recognize the transferred assets and recognizes the financial liabilities equal to the transfer revenue. Meanwhile the lessee accounts for the financial liabilities in accordance with Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments.The lessor does not recognize the transferred assets but recognizes financial assets equal to the revenue transferred. It also accounts for that financial asset in accordance with Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments. 1522024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. 42. Other major accounting policies and accounting estimates 43. Major changes in accounting policies and accounting estimates (1) Major changes in accounting policies □Applicable □Not applicable (2) Major changes in accounting estimates □Applicable □Not applicable (3) Adjustments of relevant items of financial statements at the beginning of the year in the year of initial implementation of new accounting standards from 2024 □Applicable □Not applicable 44. Others The beginning balance in the notes to the financial statements refers to the data in the financial statements as of January 1 2024. The ending balance refers to the data in the financial statements as of December 31 2024. The current period refers to the year 2024 and the same period last year refers to the year 2023. These principles also apply to the parent company.VI. Taxation 1..Main tax types and tax rates Tax type Tax basis Tax rate Sales of goods or provision of taxable Value-added tax [Note 1] services Apply 7% 5% and 1% respectively by Urban maintenance and construction tax Turnover tax payable regional level Corporate income tax Taxable income 25%、20%、15%、16.5% Value added from the paid transfer of the state-owned land use right and the Land value increment tax 30%-60% property rights of the above-ground buildings and other attachments If it is levied on an ad valorem basis it shall be calculated and paid at 1.2% of the residual value after the original value Property taxes of the property is deducted by 30% at 1.2%、12% one time; if levied by lease it is calculated and paid at 12% of rental income Education surcharge Turnover tax payable 3% Local education surcharges Turnover tax payable 2% 1532024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. If there are taxpayers with different corporate income tax rates please disclose with an explanation Name of taxpayer Income tax rate Chongqing Shenguomao Real Estate Management Co. Ltd. 15% Chongqing Branch of Shenzhen International Trade Center 15% Property Management Co. Ltd.Shenzhen Facility Management Community Co. Ltd. 15% Shenzhen Property Engineering and Construction Supervision 20% Co. Ltd.Shenzhen ITC Chuntian Commercial Management Co. Ltd. 20% Shenzhen Jinhailian Property Management Co. Ltd. 20% Shenzhen Kangping Industrial Co. Ltd. 20% Shenzhen Jiaoshizhijia Training Co. Ltd. 20% Shenzhen Education Industry Co. Ltd. 20% Shenzhen Yufa Industrial Co. Ltd. 20% Chongqing Aobo Elevator Co. Ltd. 20% Shenzhen SZPRD Fuyuantai Development Co. Ltd. 20% Shenzhen Fuyuanmin Property Management Co. Ltd. 20% Shenzhen Meilong Industrial Development Co. Ltd. 20% Shenzhen Sports Service Co. Ltd. 20% Shenzhen Penghongyuan Industrial Development Co. Ltd. 20% Shenzhen International Trade Center Mechanical and Electrical 20% Equipment Co. Ltd.Shenzhen ShenShan Special Cooperation Zone Shenzhen International Trade Center Property Management Development 20% Co. Ltd.Shenzhen Helinhua Construction Management Co. Ltd. 20% Shenzhen ITC Tongle Property Management Co. Ltd. 20% Shenzhen Foreign Trade Property Management Co. Ltd. 20% Shenzhen Fubao Urban Resources Management Co. Ltd. 20% Shenzhen Shenwu Elevator Co. Ltd. 20% Shenzhen Shenfang Property Cleaning Co. Ltd. 20% Shandong Shenzhen ITC Hotel Management Co. Ltd. 20% Shenzhen Shenfubao Municipal Service Co. Ltd. 20% Shenzhen Jiayuan Property Management Co. Ltd. 20% Shenzhen ITC Shenlv Garden Co. Ltd. 20% Beijing Facility Management Community Technology Co. Ltd. 20% Shenzhen ITC Space Service Co. Ltd. 20% Shenzhen ITC Catering Co. Ltd. 20% A subsidiary registered in Hong Kong 16.50% A subsidiary registered in Vietnam 20% Other taxpayers within the consolidation scope 25% 2.Tax incentives 1. According to the provisions of Article 2 Property service of the 37th category of commercial service industry in the incentive category of the Guidance Catalogue of Industrial Structure Adjustment (2011 Edition) issued by the National Development and 1542024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Reform Commission the eligible western China enterprises shall be subject to a corporate income tax at a reduced tax rate of 15%.The above policy applies to subsidiaries Chongqing Shenzhen International Trade Center Property Management Co. Ltd. and the Chongqing Branch of Shenzhen International Trade Center Property Management Co. Ltd. 2. Shenzhen Facility Management Community Co. Ltd. passed the re-inspection for high-tech certification on December 19 2022. The certificate number is GR202244204675 and the validity period is three years. According to the tax law the preferential corporate income tax rate of 15% applies for 2024. 3. According to the Announcement on Preferential Income Tax Policies for Small and Micro Enterprises and Individual Business Entities (CZB SWZJ GG [2023] No.6) issued by the Ministry of Finance and the State Taxation Administration and according to the Announcement on Tax Policies for Further Supporting the Development of Small and Micro Enterprises and Individual Business Entities (CZB SWZJ GG [2023] No.12) issued by the Ministry of Finance and the State Taxation Administration small low-profit enterprises enjoy a corporate income tax reduction with 25% of the actual corporate income for calculating taxable income and 20% as the tax rate. The resource tax (excluding water resources tax) urban maintenance and construction tax housing tax urban land use tax stamp duty (excluding stamp duty on securities transactions) farmland occupation tax education surcharge and local education surcharge shall be halved for small-scale value-added tax payers small low-profit enterprises and individual business entities with the validity period from January 1 2023 to December 31 2027. A total of 28 subsidiaries including Shenzhen Property Engineering and Construction Supervision Co. Ltd. and Shenzhen ITC Chuntian Commercial Management Co. Ltd. are eligible for the policy. 3. Others Note 1: the Company and its subsidiaries' value-added tax taxable items and tax rates are shown in the table below Type of revenue General tax rate Simplified tax rate Real estate sales revenue 9% 5% Real estate rental revenue 9% 5% Property service revenue 6% 3% Revenue from catering services 6% 3% Others 13% -- VII. Notes to items in consolidated financial statements 1. Monetary funds Unit: RMB Item Ending balance Beginning balance Cash on hand 10705.64 75265.01 Bank deposits 1672092309.74 2742094318.81 Other monetary funds 6013628.74 6628892.90 Total 1678116644.12 2748798476.72 Including: total amount deposited 68560621.7962161463.84 abroad Other explanations: 1552024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. At the end of the period the amount of restricted funds due to mortgage pledge freezing etc. is RMB67316759.82 mainly including guarantee and interest of RMB5853430.19; the restricted funds in the bank deposits mainly include the frozen funds of RMB3972494.30 and the principal and interest of time deposits of RMB57490835.33; the above amount is not treated as cash and cash equivalents due to restrictions on use.The funds deposited overseas are mainly the balance of monetary funds of the overseas subsidiaries Shum Yip Properties Development Limited and Vietnam Shenzhen International Trade Center Property Management Co. Ltd. 2. Financial assets held for trading Unit: RMB Item Ending balance Beginning balance Including: Including: Other explanations: 3. Notes receivable (1) Presentation of notes receivable by category Unit: RMB Item Ending balance Beginning balance (2) Disclosure by provision method for bad debts Unit: RMB Ending balance Beginning balance Provision for bad Provision for bad Type Book balance Book balancedebts Book debts Book Provisio value Provisio value Amount Ratio Amount Amount Ratio Amount n ratio n ratio Includ ing: Includ ing: If the provision for bad debts of notes receivable is made in accordance with the general model of expected credit losses: □ Applicable □Not applicable (3) Provision for bad debts accrued recovered or reversed for the current period Provision for bad debts for the current period: Unit: RMB Changes in the current period Beginning Type Recovery or Ending balancebalance Provision Write-off Others reversal 1562024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Significant amounts of recovered or reversed provision for bad debts for the current period: □ Applicable □Not applicable (4) The Company's pledged notes receivable at the end of the period Unit: RMB Item Ending pledged amount (5) Notes receivable endorsed or discounted by the Company and not yet due on the balance sheet date at the end of the period Unit: RMB Item Ending derecognized amount Ending un-derecognized amount (6) Actual write-off of notes receivable for the current period Unit: RMB Item Amount of write-off Including write-off of important notes receivable: Unit: RMB Whether the fund Write-off Nature of notes Amount of write- Reasons for write- is generated by Entity name procedures receivable off off related party performed transactions Explanation on write-off of notes receivable: 4. Accounts receivable (1) Disclosure by aging Unit: RMB Aging Ending book balance Beginning book balance Within 1 year (including 1 year) 305894933.54 425235829.74 1-2 years 176468618.29 83584196.31 2 to 3 years 19438565.01 19037312.67 Over 3 years 136095567.36 127356876.62 3 - 4 years 9641324.19 10334088.28 4 to 5 years 9475754.83 4135080.24 Over 5 years 116978488.34 112887708.10 Total 637897684.20 655214215.34 (2) Disclosure by provision method for bad debts Unit: RMB Type Ending balance Beginning balance 1572024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Provision for bad Provision for bad Book balance Book balance debts Book debts Book Provisio value Provisio value Amount Ratio Amount Amount Ratio Amount n ratio n ratio Account s receivab le with provisio 114667 112621 204591 115895 113235 266052 17.98%98.22%17.69%97.70% n for bad 552.55 632.99 9.56 721.46 195.18 6.28 debts on an individu al basis Includ ing: Account s receivab le with provisio 523230492613473968539318391725500145 n for bad 82.02% 9.41% 82.31% 7.26% 131.6521.61810.04493.8866.28927.60 debts on a combina tion basis Includ ing: 637897161882476014655214152407502806 Total 100.00% 25.38% 100.00% 23.26% 684.20954.60729.60215.34761.46453.88 Provision for bad debts on an individual basis: RMB112621632.99 Unit: RMB Beginning balance Ending balance Name Provision for Provision for Reasons for Book balance Book balance Provision ratio bad debts bad debts provision Shenzhen Involved in Jiyong Property 93811328.05 93811328.05 93811328.05 93811328.05 100.00% litigation and Development irrecoverable Co. Ltd.Shenzhen Tewei Estimated to be 2836561.002836561.002836561.002836561.00100.00% Industrial Co. irrecoverable Ltd.Shenzhen Lunan Estimated to be Industrial 2818284.84 2818284.84 2818284.84 2818284.84 100.00% irrecoverable Development Company Shenzhen Hampoo Estimated to be Electronic 1436020.29 1433070.29 1436020.29 1433070.29 99.79% irrecoverable Technology Development 1582024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Co. Ltd.Accounts receivable with insignificant Failed to single amount 14993527.28 12335951.00 13765358.37 11722388.81 85.16% recover for a but subject to long time provision for bad debts on an individual basis Total 115895721.46 113235195.18 114667552.55 112621632.99 Accounts receivable with provision for bad debts on a combination basis: RMB49261321.61 Unit: RMB Ending balance Name Book balance Provision for bad debts Provision ratio Credit risk characteristic 491691046.1249261321.6112.56% combination Current combinations of other 146264953.295871324.784.01% related parties Government funding 31539085.53 combination Total 523230131.65 49261321.61 Explanation on the basis for determining the combination: If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses: □ Applicable □Not applicable (3) Provision for bad debts accrued recovered or reversed for the current period Provision for bad debts for the current period: Unit: RMB Changes in the current period Beginning Type balance Recovery or Ending balance Provision Write-off Others reversal Provision for bad debts accrued on an 113235195.18 -613562.19 112621632.99 individual basis Provision for bad debts 39172566.2810088755.3349261321.61 made by portfolio Total 152407761.46 9475193.14 161882954.60 Significant amounts of recovered or reversed provision for bad debts for the current period: Unit: RMB Basis for determining Recovered or reversed the ratio of provision Entity name Reason for reversal Recovery method amount for bad debts and its rationality 1592024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. (4).Actual write-off of accounts receivable for the current period Unit: RMB Item Amount of write-off Including write-off of important accounts receivable: Unit: RMB Whether the fund Write-off Nature of accounts Amount of write- Reasons for write- is generated by Entity name procedures receivable off off related party performed transactions Explanation on write-off of accounts receivable: (5) Top five accounts receivable by the debtor in terms of the ending balance and contract assets Unit: RMB Ending balance of Ratio to the total provision for bad Ending Ending balances of amount of ending Ending debts of accounts balance of accounts balance of Entity name balance of receivable and accounts receivable and accounts contract assets provision for receivable contract assets receivable and impairment of contract assets (%) contract assets Shenzhen Futian Talent 109392112.3 109392112.3717.14%10939211.24 Housing Co. Ltd. 7 Shenzhen Jiyong Property 93811328.0593811328.0514.70%93811328.05 Development Co. Ltd.Shenzhen Bay Technology 49188098.9149188098.917.71%1508080.64 Development Co. Ltd.Hebei Shenbao Investment 41683941.80215129.9141899071.716.56%1916102.52 Development Co. Ltd.Shenzhen Futian District Government Property 21378880.28 21378880.28 3.35% Management Center 315454361.4 Total 215129.91 315669491.32 49.46% 108174722.45 5. Contract assets (1) Details of contract assets Unit: RMB Ending balance Beginning balance Item Provision for Provision for Book balance Book value Book balance Book value bad debts bad debts Quality guarantee deposit for 468765.62 468765.62 844485.57 844485.57 municipal works Total 468765.62 468765.62 844485.57 844485.57 1602024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. (2) Major changes of book value during the reporting period and reasons Unit: RMB Item Changes Reason for changes (3).Disclosure by provision method for bad debts Unit: RMB Ending balance Beginning balance Provision for bad Provision for bad Book balance Book balance Type debts Book debts Book Provisio value Provisio value Amount Ratio Amount Amount Ratio Amount n ratio n ratio Incl uding: Incl uding: The provision for bad debts made according to the general model of expected credit losses □ Applicable □Not applicable (4) Provision for bad debts accrued recovered or reversed for the current period Unit: RMB Write-off/ cancellation Provision for the Recovered or reversed Item after verification for Reasons current period for the current period the current period Significant amounts of recovered or reversed provision for bad debts for the current period: Unit: RMB Basis for determining Recovered or reversed the ratio of provision Entity name Reason for reversal Recovery method amount for bad debts and its rationality Other explanations: (5).Actual write-off of contract assets for the current period Unit: RMB Item Amount of write-off Including write-off of important contract assets Unit: RMB Whether the fund Write-off Amount of write- Reasons for write- is generated by Entity name Nature of payment procedures off off related party performed transactions Explanation on write-off of contract assets: 1612024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Other explanations: 6. Receivables financing (1) Presentation of receivables financing by category Unit: RMB Item Ending balance Beginning balance (2) Disclosure by provision method for bad debts Unit: RMB Ending balance Beginning balance Provision for bad Provision for bad Book balance Book balance Type debts Book debts Book Provisio value Provisio value Amount Ratio Amount Amount Ratio Amount n ratio n ratio Incl uding: Incl uding: The provision for bad debts made according to the general model of expected credit losses Unit: RMB Phase I Phase II Phase III Provision for bad debts Expected credit losses Expected credit loss Expected credit loss Total over the next 12 throughout the duration throughout the duration months (without credit loss) (with credit loss) Balance as at January 1 2024 forwarded to the current period Basis for division of each stage and ratio of provision for bad debts Explanation on significant changes in the book balance of receivables financing due to changes in provision for loss for the current period: (3) Provision for bad debts accrued recovered or reversed for the current period Unit: RMB Changes in the current period Beginning Type Recovery or Resale or write- Ending balancebalance Provision Other changes reversal off Significant amounts of recovered or reversed provision for bad debts for the current period: Unit: RMB Basis for determining Recovered or reversed the ratio of provision Entity name Reason for reversal Recovery method amount for bad debts and its rationality Other explanations: 1622024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. (4) The Company's pledged receivables financing at the end of the period Unit: RMB Item Ending pledged amount (5) Receivables financing endorsed or discounted by the Company and not yet due on the balance sheet date at the end of the period Unit: RMB Item Ending derecognized amount Ending un-derecognized amount (6) Actual write-off of receivables financing for the current period Unit: RMB Item Amount of write-off Including write-off of important receivables financing Unit: RMB Whether the fund Write-off Amount of write- Reasons for write- is generated by Entity name Nature of payment procedures off off related party performed transactions Explanation on write-off: (7) Increases/decreases and fair value changes of receivables financing for the current period (8) Other explanations 7. Other receivables Unit: RMB Item Ending balance Beginning balance Other receivables 273333289.51 624394372.82 Total 273333289.51 624394372.82 (1) Interest receivable 1) Classification of interest receivable Unit: RMB Item Ending balance Beginning balance 2) Significant overdue interest Unit: RMB Borrower Ending balance Overdue time Reason for overdue Whether impairment occurs and the basis for 1632024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. judgment Other explanations: 3) Disclosure by provision method for bad debts □Applicable □Not applicable 4) Provision for bad debts accrued recovered or reversed for the current period Unit: RMB Changes in the current period Beginning Type Recovery or Resale or write- Ending balancebalance Provision Other changes reversal off Significant amounts of recovered or reversed provision for bad debts for the current period: Unit: RMB Basis for determining Recovered or reversed the ratio of provision Entity name Reason for reversal Recovery method amount for bad debts and its rationality Other explanations: 5) Actual write-off of interest receivable for the current period Unit: RMB Item Amount of write-off Including write-off of important interest receivable Unit: RMB Whether the fund Write-off Amount of write- Reasons for write- is generated by Entity name Nature of payment procedures off off related party performed transactions Explanation on write-off: Other explanations: (2) Dividends receivable 1) Classification of dividends receivable Unit: RMB Project (or investees) Ending balance Beginning balance 2) Significant dividends receivable with aging over 1 year Unit: RMB Whether impairment Reason for not Project (or investees) Ending balance Aging occurs and the basis for withdrawing judgment 1642024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. 3) Disclosure by provision method for bad debts □Applicable □Not applicable 4) Provision for bad debts accrued recovered or reversed for the current period Unit: RMB Changes in the current period Beginning Type Ending balance balance Recovery or Resale or write-Provision Other changes reversal off Significant amounts of recovered or reversed provision for bad debts for the current period: Unit: RMB Basis for determining Recovered or reversed the ratio of provision Entity name Reason for reversal Recovery method amount for bad debts and its rationality Other explanations: 5) Actual write-off of dividends receivable in the current period Unit: RMB Item Amount of write-off Write-off of important dividends receivable Unit: RMB Whether the fund Write-off Amount of write- Reasons for write- is generated by Entity name Nature of payment procedures off off related party performed transactions Explanation on write-off: Other explanations: (3) Other receivables 1) Classification of other receivables by nature of payment Unit: RMB Nature of payment Ending book balance Beginning book balance Deposit 15529043.09 9813980.43 Guarantee 33305992.74 45417519.59 Petty cash 107431.74 63090.95 Withholding payments 14146194.97 2826478.51 Current accounts 631105205.00 597882606.95 Others 27382989.67 63021059.95 Total 721576857.21 719024736.38 2) Disclosure by aging Unit: RMB 1652024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Aging Ending book balance Beginning book balance Within 1 year (including 1 year) 26526466.14 39565801.00 1-2 years 19386864.72 11760542.45 2 to 3 years 10280135.75 571247946.92 Over 3 years 665383390.60 96450446.01 3 - 4 years 569228726.25 31254533.77 4 to 5 years 31121307.77 1068702.68 Over 5 years 65033356.58 64127209.56 Total 721576857.21 719024736.38 3) Disclosure by provision method for bad debts □Applicable □ Not applicable Unit: RMB Ending balance Beginning balance Provision for bad Provision for bad Book balance Book balance Type debts Book debts Book Provisio value Provisio value Amount Ratio Amount Amount Ratio Amount n ratio n ratio Provisio n for bad debts 627770392405235364627054471694579884 accrued 87.00% 62.51% 87.21% 7.52% 434.33624.92809.41431.4274.26957.16 on an individu al basis Incl uding: Provisio n for bad 938064558379379684919703474608445094 debts 13.00% 59.52% 12.79% 51.60% 22.8842.7880.1004.9689.3015.66 made by portfolio Incl uding: 721576448243273333719024946303624394 Total 100.00% 62.12% 100.00% 13.16% 857.21567.70289.51736.3863.56372.82 Provision for bad debts accrued on an individual basis: RMB 392405624.92 Unit: RMB Beginning balance Ending balance Name Provision for Provision for Reasons for Book balance Book balance Provision ratio bad debts bad debts provision Shenzhen Xinhai Holdings Co.Prudent Ltd. and related 587289550.00 17618686.51 587289550.00 362846450.00 61.78% judgment on parties recovery risk Shenzhen Xinhai Rongyao Real 1662024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Estate Development Co. Ltd. and Shenzhen Qianhai Advanced Information Service Co.Ltd.Shenzhen Tianjun 10000000.0010000000.00 Industrial Co.Ltd.Shanghai Yutong Real Failed to Estate 5676000.00 5676000.00 5676000.00 5676000.00 100.00% recover for a Development long time Co. Ltd.Hong Kong Failed to Yueheng 3271837.78 3271837.78 3271837.78 3271837.78 100.00% recover for a Development long time Co. Ltd.Failed to Dameisha 2576445.69 2576445.69 2576445.69 2576445.69 100.00% recover for a Tourism Center long time Failed to Elevated Train 2542332.43 2542332.43 2542332.43 2542332.43 100.00% recover for a Project long time Accounts receivable with insignificant Failed to single amount 15698265.52 15484171.85 16414268.43 15492559.02 94.38% recover for a but subject to long time provision for bad debts on an individual basis Total 627054431.42 47169474.26 627770434.33 392405624.92 Provision for bad debts by portfolio: RMB 55837942.78 Unit: RMB Ending balance Name Book balance Provision for bad debts Provision ratio Within 1 year 25604909.80 768147.25 3.00% 1-2 years 4735293.94 473529.41 10.00% 2 to 3 years 1849560.48 554868.17 30.00% 3 - 4 years 2701998.36 1350999.22 50.00% 4 to 5 years 31121307.77 24897046.20 80.00% Over 5 years 27793352.53 27793352.53 100.00% Total 93806422.88 55837942.78 Explanation on the basis for determining the combination: The provision for bad debts made according to the general model of expected credit losses Unit: RMB Phase I Phase II Phase III Provision for bad debts Total Expected credit losses Expected credit loss Expected credit loss 1672024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. over the next 12 throughout the duration throughout the duration months (without credit loss) (with credit loss) Balance as of January 47460889.3017297069.2429872405.0294630363.56 12024 Balance as at January 1 2024 forwarded to the current period -Transfer to phase III -321617.26 -17297069.24 17618686.50 Provision for the 8698670.74344914533.40353613204.14 current period Balance as of 55837942.780.00392405624.92448243567.70 December 31 2024 Basis for division of each stage and ratio of provision for bad debts Changes in the book balance of provision for loss with significant changes in the current period □Applicable □ Not applicable Based on the changes in the real estate market the Company hired an asset appraisal agency to conduct a value analysis on the recoverable amount of the claims of Shenzhen Xinhai Holdings Co. Ltd. and related parties Shenzhen Xinhai Rongyao Real Estate Development Co. Ltd. and Shenzhen Qianhai Advanced Information Service Co. Ltd. The provision for bad debts is made for the part of the recoverable amount lower than the book balance according to the value analysis report. 4) Provision for bad debts accrued recovered or reversed in the current period Provision for bad debts for the current period: Unit: RMB Changes in the current period Beginning Type Recovery or Resale or write- Ending balancebalance Provision Others reversal off Provision for bad debts 47169474.26345236150.66392405624.92 accrued on an individual basis Provision for bad debts made 47460889.30 8377053.48 55837942.78 by portfolio Total 94630363.56 353613204.14 448243567.70 Reversal or recovery of significant amount of provision for bad debts in the current period: Unit: RMB Basis for determining Recovered or reversed the ratio of provision Entity name Reason for reversal Recovery method amount for bad debts and its rationality 1682024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. 5) Other receivables actually write-off in the current period Unit: RMB Item Amount of write-off Important other receivables write-off: Unit: RMB Whether the fund Write-off Nature of other Amount of write- Reasons for write- is generated by Entity name procedures receivables off off related party performed transactions Explanations on write-off of other receivables: 6) Other receivables of the top five ending balances collected by debtor Unit: RMB Balance of Ratio to the total provision for bad Entity name Nature of amount Ending balance Aging ending balance of debts as at the end other receivables of the period Shenzhen Xinhai Rongyao Real 3 to 5 years over 5 Estate Current accounts 375068984.55 51.98% 231729731.18 years Development Co.Ltd.Shenzhen Xinhai 3 to 5 years over 5 Current accounts 201499990.18 27.92% 124493201.20 Holdings years Shenzhen Bengling Joint Current accounts 30000000.00 4 to 5 years 4.16% 24000000.00 Stock Cooperative Company Shenzhen Qianhai Advanced Current accounts 10720575.27 3 - 4 years 1.49% 6623517.62 Information Service Co. Ltd.Shenzhen Tianjun Current accounts 10000000.00 3 - 4 years 1.39% Industrial Co. Ltd.Total 627289550.00 86.94% 386846450.00 7) Reported as other receivables due to centralized fund management Unit: RMB Other explanations: 8. Advances to suppliers (1) Advances to suppliers are listed by aging Unit: RMB Aging Ending balance Beginning balance 1692024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Amount Ratio Amount Ratio Within 1 year 5575416.69 71.57% 11077693.87 92.45% 1-2 years 1533388.81 19.69% 388465.12 3.24% 2 to 3 years 352506.38 4.53% 304932.40 2.54% Over 3 years 327861.81 4.21% 211994.96 1.77% Total 7789173.69 11983086.35 Explanation of the reasons for the delayed settlement of advances to suppliers with an aging of over 1 year and significant amounts: (2) Prepayment status of the top five year-end balances collected by prepaid objects Entity name Ending balance Ratio to the total endingbalance of prepayments (%) Chongqing Yudi Assets Operation Management Co. Ltd. 1926139.50 24.73% The Fifth Construction Engineering Co. Ltd. of China Construction Fourth Engineering Co. Ltd. 568181.04 7.29% Tianjin Tanggu Gas Co. Ltd. 500002.00 6.42% Beijing Jingdong Century Information Technology Co. Ltd. 404030.64 5.19% Chongqing Caitong Water Affairs Co. Ltd. 300426.08 3.86% Total 3698779.26 47.49% Other explanations: 9. Inventories Whether the Company needs to comply with the disclosure requirements of the real estate industry Yes (1) Classification The Company shall comply with the disclosure requirements for the real estate industry as set out in the Guidelines for Self- Regulation of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure Classification by nature Unit: RMB Ending balance Beginning balance Provision for Provision for inventory inventory depreciation or depreciation or Item provision for provision for Book balance Book value Book balance Book value impairment of impairment of contract contract performance performance costs costs Development 10400305603 1159179944. 9241125658. 11174583667 10955759631 218824035.97 costs .19 88 31 .43 .46 Developing 1538484990. 1442730360. 95754630.32141176477.91141176477.91 products 57 25 Raw materials 1497761.18 907923.88 589837.30 1533601.80 915223.04 618378.76 Inventories of 2407119.31 2094300.39 312818.92 2564024.46 2094300.39 469724.07 1702024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. goods Low-value 286478.63286478.63184883.54184883.54 consumables 119429819521257936799.106850451531132004265511098209095 Total 221833559.40.8847.41.14.74 Disclose the main items of "development costs" and their capitalization of interest in the following format: Unit: RMB Includi Transfe ng: Increas Accum r to Other Capitali Estimat e in the ulated Estimat develop decreas zed Comme ed Beginni current capitali Source ed total ment es in Ending amount Project ncemen complet ng period zation of investm product the balance of t time ion balance (develo amount funds ent s in the current interest time pment of current period in the costs) interest period current period Lake October Septem 84000 52221 60105 788438 477379 119889 Bank City 15 ber 10 00000. 24208. 63047. 838.82 595.14 892.75 loans Project 2020 2026 00 85 67 Humen March August 32175 25596 27414 Binhai 181770 24383 14782 Bank 223090000.48387.18798. Harbor 410.70 165.36 180.06 loans 20222025005121 Project Guang ming Decem 26586 19952 22915 Yutang March 296336 11490 76805 Bank ber 3 80500. 22707. 58732. 0.00 Shangf 7 2022 025.16 648.55 02.14 loans 2024005672 u Project Land in Hongqi 66484 66484 0.00 Others Town 04.13 04.13 Haikou Shenhu 3728785032.37372 i 0.00 Others 764.5485797.39 Garden Fuyuan 161023866119968 tai 0.00 Others 390.1442.48532.62 Project Shenya ng May 37747 12956 15344 Digital March 238764 88218 83609 Bank 3090000.53963.18436. Intellig 6 2023 473.51 92.61 37.61 loans 2026000051 ent City Project 418958019749915 Others 0.00 Others 841.7044.96586.66 1805111174229151517210400 522075150713 Total -- -- 060500 583667 58732. 0.00 80668. 305603 -- 301.66512.56.00.437248.19 Disclose the main project information on "developed products" in the following format: Unit: RMB Time of Beginning Project Increase in Decrease in Ending Accumulated Including: completion balance the current the current balance capitalization Capitalized 1712024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. period period amount of amount of interest interest in the current period SZPRD · Co December 1 83077702.9 vered Bridge 3447316.75 3447316.75 20126 International SZPRD · La 30141708.930049833.910446911.4 keside Royal June 1 2015 91874.94 283 View Phase I SZPRD · Ba January 12 27205315.9 nshan Yujing 3536989.41 57501.95 3479487.46 20225 Phase II SZPRD · So 23046940.022232784.130539392.6 nghu July 1 2017 814155.84 395 Langyuan SZPRD · La keside Royal November 1 30279330.7 30166422.6 112908.140.00 View Phase 2017 8 4 II SZPRD · Gol December 1 36946480.8 25520654.7 11425826.0 den Ling 0.00 2019349 Holiday SZPRD · Fuc hang Garden January 18 Phase II 4951526.83 4951526.83 0.00 2023 (Fuhui Huayuan) SZPRD · Yut December 3 229155873 867653124. 142390560 11490648.5 0.007680502.14 ang Shangfu 2024 2.72 45 8.27 5 December 1 26385636.2 ITC Plaza 4839083.10 4839083.10 19959 Area A Huangyuyua June 1 2001 790140.58 790140.58 0.00 n Podium building of November 1 645532.65645532.650.00 Fuchang 1999 Building Other 2551428.032551428.030.00 projects 141176477.229155873894250220.153848499189145607. Total -- 7680502.14 912.72060.5783 Disclose "development products with installment collection" "development products for lease" and "revolving houses" by item in the following format: Unit: RMB Increase in the current Decrease in the current Project Beginning balance Ending balance period period (2) Data resources recognized as inventories Unit: RMB Inventories of Inventories of data Inventories of data Item purchased data resource processed by resource obtained by Total resources oneself other means 1722024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. (3) Provision for inventory depreciation and provision for impairment of contract performance costs The provision for inventory depreciation shall be disclosed in the following format: Classification by nature Unit: RMB Increase in the current period Decrease in the current period Beginning Ending Item balance Reversal or Remark Provision Others Others balance write-off Development 218824035. 940355908. 115917994 costs 97 91 4.88 Developing 95754630.3 95754630.3 products 2 2 Raw 915223.042820.8410120.00907923.88 materials Inventories 2094300.392094300.39 of goods 221833559.103611336125793679 Total 10120.00 400.079.47 Classification by main items: Unit: RMB Increase in the current period Decrease in the current period Beginning Ending Project Remark balance Reversal orProvision Others Others balance write-off (4) The capitalization rate of interest in the ending balance of inventories Capitalization amount at Capitalization amount Amount carriedProject the beginning of the of the current period forward of the Capitalization amount at period current period the end of the period SZPRD · Golden Ling Holiday 264266.89 195968.26 68298.63 SZPRD ·Lake City 357489702.39 119889892.75 477379595.14 SZPRD · Covered Bridge International 2971986.54 2971986.54 SZPRD · Lakeside Royal View Phase I 1249515.42 29241.32 1220274.10 SZPRD · Harbour Palace 9600985.30 14782180.06 24383165.36 SZPRD · Yutang Shangfu 3810146.41 7680502.14 4289437.30 7201211.25 Shenzhen Property · Shenyang Digital Intelligent City 460955.00 8360937.61 8821892.61 Total 375847557.95 150713512.56 4514646.88 522046423.63 1732024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. (5) Restricted inventories Disclosure of restricted inventories by item: Unit: RMB Project Beginning balance Ending balance Reason for restriction Land use right of Lake City 381246103.00 401867324.00 Loan collateral Project plot Land use right of Plot D of Shenyang Digital Intelligent 474272747.56 Loan collateral City Project and Plot D construction in progress Total 381246103.00 876140071.56 10. Assets held for sale Unit: RMB Ending book Provision for Estimated Estimated Item Closing book value Fair value balance impairment disposal cost disposal time Non-current January 13 assets held for 170154.05 170154.05 2025 sale Total 170154.05 170154.05 Other explanations: 11. Non-current assets maturing within one year Unit: RMB Item Ending balance Beginning balance (1) Debt investments due within one year □Applicable □Not applicable (2) Other debt investments due within one year □Applicable □Not applicable 12. Other current assets Unit: RMB Item Ending balance Beginning balance Prepaid value-added tax 26330826.55 22096062.08 Input tax to be deducted 140627987.61 97304885.00 Prepaid income tax 2883055.01 4608593.92 Prepaid land value increment tax 8078866.26 862126.84 Prepaid urban construction tax 2215820.29 1692524.35 Advance payment of education 1582870.761208945.98 surcharges Instant collection and refund of value- 1687.34 1687.34 1742024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. added tax on software sales receivable Total 181721113.82 127774825.51 Other explanations: 13. Debt investments (1) Details of debt investments Unit: RMB Ending balance Beginning balance Item Provision for Provision for Book balance Book value Book balance Book value impairment impairment Changes in provision for impairment of debt investments in the current period Unit: RMB Increase in the current Decrease in the current Item Beginning balance Ending balance period period (2) Important debt investments at the end of the period Unit: RMB Ending balance Beginning balance Debt Nominal Effective Nominal Effective item Book Maturity Overdue Book Maturity Overdueinterest interest interest interest value date principal value date principal rate rate rate rate (3) Provision for impairment Unit: RMB Phase I Phase II Phase III Provision for bad debts Expected credit losses Expected credit loss Expected credit loss Total over the next 12 throughout the duration throughout the duration months (without credit loss) (with credit loss) Balance as at January 1 2024 forwarded to the current period Basis for division of each stage and ratio of provision for bad debts (4) Debt investments actually written off in the current period Unit: RMB Item Amount of write-off Write-off of important debt investments Debt investments write-off: Changes in the book balance of provision for loss with significant changes in the current period □ Applicable □Not applicable Other explanations: 1752024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. 14. Other debt investments (1) Other debt investments Unit: RMB Accumulated Fair value provision for Cumulati Interest changes impairment Beginnin Accrued Ending ve fair Remar Item adjustmen of the Cost recognized in g balance interest balance value k t current other changes period comprehensi ve income Changes in provision for impairment of other debt investments in the current period Unit: RMB Increase in the current Decrease in the current Item Beginning balance Ending balance period period (2) Other important debt investments at the end of the period Unit: RMB Ending balance Beginning balance Other debt Nominal Effective Nominal EffectiveBook Maturity Overdue Book Maturity Overdue items interest interest interest interestvalue date principal value date principal rate rate rate rate (3) Provision for impairment Unit: RMB Phase I Phase II Phase III Provision for bad debts Expected credit losses Expected credit loss Expected credit loss Total over the next 12 throughout the duration throughout the duration months (without credit loss) (with credit loss) Balance as at January 1 2024 forwarded to the current period Basis for division of each stage and ratio of provision for bad debts (4) Other debt investments actually written off in the current period Unit: RMB Item Amount of write-off Write-off of important other debt investments Other debt investments write-off: Changes in the book balance of provision for loss with significant changes in the current period □ Applicable □Not applicable Other explanations: 1762024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. 15. Other equity instrument investments Unit: RMB Reasons Gains Losses designated Gains Loss accumulate accumulate as being accrued to accrued to Dividend d into other d into other measured other other income comprehen comprehen at fair Ending Beginning comprehen comprehen recognized Project sive sive value balance balance sive sive during the income at income at through income in income in current the end of the end of other the current the current period the current the current comprehen period period period period sive income Jintian Not for Industrial 2896256.3 586231.82 636926.20 60387.90 trading (Group) 8 purpose Co. Ltd. 2896256.3 Total 586231.82 636926.20 60387.90 8 Derecognition exists in the current period Unit: RMB Cumulative gains transferred Cumulative losses transferred Project Reasons for derecognition to retained earnings to retained earnings Non-trading equity instrument investments by item in the current period Unit: RMB Amount Reasons Reasons for the transferred designated as transfer of other Recognized from the other being measured Cumulative Cumulative comprehensive Project dividend comprehensive at fair value gains loss income into income income to through other retained retained comprehensive earnings earnings income Jintian Industrial Not for trading 3004124.49 (Group) Co. purpose Ltd.Other explanations: 16. Long-term receivables (1) Long-term receivables Unit: RMB Ending balance Beginning balance Interval of Item Provision for Provision for Book balance Book value Book balance Book value discount rate bad debts bad debts 1772024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. (2) Disclosure by provision method for bad debts Unit: RMB Ending balance Beginning balance Provision for bad Provision for bad Book balance Book balance Type debts Book debts Book Provisio value Provisio value Amount Ratio Amount Amount Ratio Amount n ratio n ratio Incl uding: Incl uding: The provision for bad debts made according to the general model of expected credit losses Unit: RMB Phase I Phase II Phase III Provision for bad debts Expected credit losses Expected credit loss Expected credit loss Total over the next 12 throughout the duration throughout the duration months (without credit loss) (with credit loss) Balance as at January 1 2024 forwarded to the current period Basis for division of each stage and ratio of provision for bad debts (3) Provision for bad debts accrued recovered or reversed for the current period Unit: RMB Changes in the current period Beginning Type balance Recovery or Resale or write- Ending balance Provision Others reversal off Reversal or recovery of significant amount of provision for bad debts in the current period: Unit: RMB Basis for determining Recovered or reversed the ratio of provision Entity name Reason for reversal Recovery method amount for bad debts and its rationality Other explanations: (4) Actual write-off of long-term receivables in the current period Unit: RMB Item Amount of write-off Write-off of important long-term receivables: Unit: RMB Amount of write- Reasons for write- Entity name Nature of payment Write-off Whether the fund off off procedures is generated by 1782024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. performed related party transactions Explanations on write-off of long-term receivables: 17. Long-term equity investments Unit: RMB Increase/decrease in this period Invest Balanc Beginn ment Adjust e of Beginn ing profit ment Cash provisiEnding ing balanc or loss of divide on forbalanc balanc e of Additi Reduc Other Provisi Investees recogn other nds or impair e provisi onal ed change on for e ized compr profits Others ment (book on for invest invest s in impair (book under ehensi declare as atvalue) value) impair ment ment equity mentthe ve d to be the end ment equity incom paid of the metho e period d I. Joint ventures Shenzhen 480651842923235 Property Jifa 818.50782.6600. Warehousing 04797 Co. Ltd.Shenzhen Tian'an International - 70505739 Building 1311 937.34071.23 Property 866.11 Management Co. Ltd. 551161829723809 Sub-total 755.8 8916. 5672. 43620 II. Associates Shenzhen Wufang 18983 18983 Ceramic 614.1 614.1 Industry Co. 4 4 Ltd.Shenzhen Comfort 1650016500 Health 0.000.00 Products Co. Ltd.Shenzhen Xinghao Imitation 75667 75667 Porcelain 0.68 0.68 Products Co. Ltd.Shenzhen Social 32669 32669 Welfare 3.24 3.24 Company 1792024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Fuda Electronics Factory Shenzhen Fulong 16841684 Industrial 350.00350.00 Developmen t Co. Ltd.Haonianhua 2733 2733 Hotel 570.05 570.05 Shenzhen Education 5000050000 Fund 0.000.00 Longhua Investment Shenzhen Kangle 5400654006 Sports Club 0.000.00 Huangfa Branch Factory building in Dankeng Village 1168 1168 Fumin 973.20 973.20 Guanlan Town Shenzhen Shenzhen Xiongniu 5000050000 Bowling 0.000.00 Entertainme nt Co. Ltd.Shenzhen Lianhua Caitian 1475 0.00 Property 465.91 Management Co. Ltd.Shenzhen Yangyuan 1030 1030 Industrial 000.00 000.00 Co. Ltd.Jia Kaifeng Company 60000 60000 Bao'an 0.00 0.00 Company Guiyuan 3500035000 Auto Repair 0.000.00 Plant Shenzhen Wuwei Roof 50000 50000 Landscaping 0.00 0.00 Co. Ltd.Shenzhen 2400024000 Yuanping 0.000.00 Plastic Steel 1802024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Doors and Windows Co. Ltd.Shenzhen Youfang 1000010000 Printing and 0.000.00 Distribution Co. Ltd.Shenzhen Lusheng 1000010000 Industrial 0.000.00 Developmen t Co. Ltd.China Construction Engineering 2894030092 Corporation 1244 93455 994.7133.3 Group Smart 593.63 .02 12 Parking Technology Co. Ltd. 28940317543009230278 124493455 Sub-total 994.7 397.2 133.3 931.3 593.63.02 1221 8405731754184222681830278 93455 Total 750.5 397.2 3509. 7805. 931.3.02 5299521 Note: Shenzhen Lianhua Caitian Property Management Co. Ltd. was legally de-registered on November 6 2024 so the Company will write off the provision for impairment of its long-term equity investment in this entity.The recoverable amount is determined at the net amount of the fair value minus the disposal expenses □ Applicable □Not applicable The recoverable amount is determined based on the present value of the estimated future cash flows □ Applicable □Not applicable Reasons for the obvious inconsistency between the above information and the information used in previous impairment test or external information Reasons for the difference between the information used in the impairment test of the Company in previous years and the actual situation of the current year Other explanations: 18. Other non-current financial assets Unit: RMB Item Ending balance Beginning balance Other explanations: 19. Investment properties (1) Investment properties measured at the cost mode □Applicable □ Not applicable 1812024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Unit: RMB Construction in Item Houses and buildings Land use rights Total progress I. Total original book value 1. Beginning balance 882419576.87 14495902.20 37192716.83 934108195.90 2. Increase in the current period 24580257.28 2472881.95 27053139.23 (1) Outsourcing 1045314.40 2472881.95 3518196.35 (2) Transfer from inventories fixed assets and construction in 23534942.88 23534942.88 progress (3) Increase in business combination 3. Decrease in the current period 6858774.25 6858774.25 (1) Disposal 7132124.83 7132124.83 (2) Other transfers out (3) Exchange adjustment -273350.58 -273350.58 4. Ending balance 900141059.90 14495902.20 39665598.78 954302560.88 II. Accumulated depreciation and accumulated amortization 1. Beginning balance 503887262.40 13360585.89 30049547.14 547297395.43 2. Increase in the current period 34139732.46 4761347.05 38901079.51 (1) Provision or amortization 28432914.88 4761347.05 33194261.93 (2) Others 5706817.58 5706817.58 3. Decrease in the current period 5317568.41 614238.72 5931807.13 (1) Disposal 5577251.46 5577251.46 (2) Other transfers out 614238.72 614238.72 (3) Exchange adjustment -259683.05 -259683.05 4. Ending balance 532709426.45 13360585.89 34196655.47 580266667.81 III. Provision for impairment 1. Beginning balance 2. Increase in the current period (1) Provision 3. Decrease in the current period (1) Disposal (2) Other transfers out 4. Ending balance IV. Book value 1. Book value as at the end of the 367431633.451135316.315468943.31374035893.07 period 2. Book value as at the beginning 378532314.471135316.317143169.69386810800.47 of the period The recoverable amount is determined at the net amount of the fair value minus the disposal expenses □ Applicable □Not applicable 1822024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. The recoverable amount is determined based on the present value of the estimated future cash flows □ Applicable □Not applicable Reasons for the obvious inconsistency between the above information and the information used in previous impairment test or external information Not applicable Reasons for the difference between the information used in the impairment test of the Company in previous years and the actual situation of the current year Not applicable Other explanations: (2) Investment properties measured by fair value □Applicable □Not applicable The Company shall comply with the disclosure requirements for the real estate industry as set out in the Guidelines for Self- Regulation of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure The investment properties measured at fair value are disclosed by item: Unit: RMB Rental The Reasons for Fair value income magnitude fair value Geographic Time of Gross floor Opening as at the Project during the of fair changes al location completion area fair value end of the reporting value and report period period changes index Whether the Company has investment properties in the construction period in the current period □ Yes □No Whether the Company has any new investment properties measured at fair value in the current period □ Yes □No (3) Conversion to investment properties and measurement at fair value Unit: RMB Accounting Impact on other Reason for Approval Impact on Item items before Amount comprehensive conversion procedure profit or loss conversion income (4) Investment properties without certificate of title Unit: RMB Reasons for failure to obtain the Item Book value certificate of title The property is a property management house which was occupied by a third- Unit 507 Building 6 Maguling 21369.41 party property management company and has now been recovered but the certificate of title has not been handled Merrill Land1 The land was obtained after the final 1832024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. judgment in 2017 and the relevant certificate of title is being handled Note: 1 As of December 31 2024 the original book value of Merrill Lynch land is RMB 3885469.40 the accumulated depreciation is RMB 3885469.40 and the book value is RMB 0.Other explanations: 20. Fixed assets Unit: RMB Item Ending balance Beginning balance Fixed assets 52712396.64 66436408.90 Disposal of fixed assets Total 52712396.64 66436408.90 (1) Fixed assets Unit: RMB Buildings and Machinery Means of Renovation of Other Item Total constructions equipment transportation fixed assets equipment I. Total original book value: 1. Beginning 124427233.56 6309068.92 19351344.14 37737995.88 58465847.17 246291489.67 balance 2. Increase in the current 385466.33 701057.69 9264.42 4485049.38 5580837.82 period (1) 372600.21701057.699264.424459955.345542877.66 Purchase (2) Transfer from construction in progress (3) Increase in business combination (4) Others 12866.12 25094.04 37960.16 3. Decrease in the 5234107.26 1111014.28 2878815.32 9223936.86 current period (1) Disposal or 1102166.49 2875816.32 3977982.81 scrapping (2) Transfer to investment 5360609.37 5360609.37 properties (3) Others 8847.79 2999.00 11846.79 (4) Exchange -126502.11-126502.11 adjustment 1842024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. 4. Ending 119193126.306694535.2518941387.5537747260.3060072081.23242648390.63 balance II. Accumulated depreciation 1. Beginning 95205368.96 2973487.60 14751415.52 26131133.38 40717958.15 179779363.61 balance 2. Increase in the current 1804820.03 2253950.20 1450008.62 6737484.89 6934228.78 19180492.52 period (1) 1804820.032253950.201450008.626737484.896546725.1318792988.87 Provision (2) Others 387503.65 387503.65 3. Decrease in the 4954900.57 1048411.70 3096267.03 9099579.30 current period (1) Disposal or 1048411.70 2713007.59 3761419.29 scrapping (2) Transfer to investment 5092578.86 5092578.86 properties (3) Others 383259.44 383259.44 (4) Exchange -137678.29-137678.29 adjustment 4. Ending 92055288.425227437.8015153012.4432868618.2744555919.90189860276.83 balance III. Provision for impairment 1. Beginning 75717.16 75717.16 balance 2. Increase in the current period (1) Provision 3. Decrease in the current period (1) Disposal or scrapping 4. Ending 75717.1675717.16 balance IV. Book value 1. Book value as at the 27137837.881467097.453788375.114878642.0315440444.1752712396.64 end of the period 1852024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. 2. Book value as at the 29221864.603335581.324599928.6211606862.5017672171.8666436408.90 beginning of the period (2) Temporarily idle fixed assets Unit: RMB Original book Accumulated Provision for Item Book value Remark value depreciation impairment (3)Fixed assets leased out through operating leases Unit: RMB Item Closing book value (4) Fixed assets without certificate of title Unit: RMB Item Book value Reason for failure to properly handle the certificate of title Due to the planning adjustment the office buildings of the property will be demolished and a new high-rise office Room 401 and 402 Office Building buildings will be built near the existing site. The company 498583.82 Sanxiang Business Building will replace the existing property with the new office buildings after its completion so the property certificate of the property has not been able to be handled.Other explanations: (5) Impairment test of fixed assets □Applicable □Not applicable (6) Disposal of fixed assets Unit: RMB Item Ending balance Beginning balance Other explanations: 21. Construction in progress Unit: RMB Item Ending balance Beginning balance (1) Construction in progress situation Unit: RMB Ending balance Beginning balance Item Book balance Provision for Book value Book balance Provision for Book value 1862024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. impairment impairment (2) Changes of significant construction in progress in the current period Unit: RMB Ratio Includi of Accum ng: Interes Transf Other accum ulated Capital t Increas er into Beginn decrea ulated Progre capital ized capital e in fixed Ending Source ing ses in project ss of ization amoun ization Project Budget the assets balanc of balanc the invest constr amoun t of rate for current in the e funds e current ment uction t of interes the period current period in interes t in the current period budget t current period (%) period (3) Provision for impairment of construction in progress in the current period Unit: RMB Increase in the Decrease in the Reason for Item Beginning balance Ending balance current period current period provision Other explanations: (4) Impairment test of construction in progress □Applicable □Not applicable (5) Project materials Unit: RMB Ending balance Beginning balance Item Provision for Provision for Book balance Book value Book balance Book value impairment impairment Other explanations: 22. Right-of-use assets (1) Right-of-use assets status Unit: RMB Item Buildings and constructions Total I. Total original book value 1. Beginning balance 56060905.86 56060905.86 2. Increase in the current period 10949317.11 10949317.11 (1) New lease 10949317.11 10949317.11 3. Decrease in the current period 24356231.04 24356231.04 (1) Termination of leases 24356231.04 24356231.04 4. Ending balance 42653991.93 42653991.93 1872024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. II. Accumulated depreciation 1. Beginning balance 32544109.64 32544109.64 2. Increase in the current period 13691114.95 13691114.95 (1) Provision 13691114.95 13691114.95 3. Decrease in the current period 20548852.69 20548852.69 (1) Disposal (2) Termination of leases 20548852.69 20548852.69 4. Ending balance 25686371.90 25686371.90 III. Provision for impairment 1. Beginning balance 2. Increase in the current period (1) Provision 3. Decrease in the current period (1) Disposal 4. Ending balance IV. Book value 1. Book value as at the end of the 16967620.0316967620.03 period 2. Book value as at the beginning of 23516796.2223516796.22 the period (2) Impairment test of right-of-use assets □Applicable □Not applicable Other explanations: 23. Intangible assets (1) Intangible assets situation Unit: RMB Non-patented Right of use Item Land use rights Patent right Total technology of software I. Total original book value 1. Beginning balance 3060312.13 3060312.13 2. Increase in the current period (1) Purchase (2) Internal R&D (3) Increase in business combination 3. Decrease in the current period (1) Disposal 1882024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. 4. Ending balance 3060312.13 3060312.13 II. Accumulated accumulation 1. Beginning balance 2170510.99 2170510.99 2. Increase in the current period 418235.75 418235.75 (1) Provision 418235.75 418235.75 3. Decrease in the current period (1) Disposal 4. Ending balance 2588746.74 2588746.74 III. Provision for impairment 1. Beginning balance 2. Increase in the current period (1) Provision 3. Decrease in the current period (1) Disposal 4. Ending balance IV. Book value 1. Book value as at the end of 471565.39471565.39 the period 2. Book value as at the 889801.14889801.14 beginning of the period The ratio of intangible assets formed through the Company's internal research and development to the balance of intangible assets at the end of the current period is 0.00%. (2) Data resources recognized as intangible assets □Applicable □Not applicable (3) Details of land use right without certificate of title Unit: RMB Reason for failure to properly handle the Item Book value certificate of title Other explanations: (4) Impairment test of intangible assets □Applicable □Not applicable 1892024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. 24. Goodwill (1) Original book value of goodwill Unit: RMB Increase in the current period Decrease in the current period Name of the investees or Beginning Amount formed Ending balance matters forming balance through Disposal goodwill business combination Shenzhen Facility Management 9446847.38 9446847.38 Community Co. Ltd.Total 9446847.38 9446847.38 (2) Provision for impairment of goodwill Unit: RMB Name of the Increase in the current period Decrease in the current period investees or Beginning Ending balance matters forming balance Provision Disposal goodwill Total (3) Relevant information on the asset group or portfolio of asset groups of the goodwill belongs to Composition and basis of the Whether it is consistent with Name asset group or combination to Operating segments and basis previous years which it belongs Asset group or portfolio of asset groups that can independently generate cash flows determined in consideration of the Shenzhen Facility synergistic effect that can Property management Management Community Co. Yes benefit from the business supporting services Ltd.combination and the management or monitoring method of the management on the production operating activities Changes in asset group or portfolio of asset groups Objective facts and basis Name Composition before change Composition after change leading to changes Other explanations 1902024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. (4) Specific determination method of recoverable amount The recoverable amount is determined at the net amount of the fair value minus the disposal expenses □ Applicable □Not applicable The recoverable amount is determined based on the present value of the estimated future cash flows □Applicable □ Not applicable Unit: RMB Basis for Key determinatio Key Years of Parameters n of key Recoverable Impairme Parameters for Item Book value forecast in parameters in amount nt amount the Forecast period Stabilizatio the Period n Phase stabilization period Shenzhen Facility Revenue Confirmation Management 27574639.49 32731847.11 5 growth rate No growth based on Community discount rate caution Co. Ltd.Total 27574639.49 32731847.11 Reasons for the obvious inconsistency between the above information and the information used in previous impairment test or external information Not applicable Reasons for the difference between the information used in the impairment test of the Company in previous years and the actual situation of the current year Not applicable (5) Completion of performance commitment and corresponding goodwill impairment There is a performance commitment when the goodwill is formed and the reporting period or the previous period of the reporting period is within the performance commitment period □Applicable □ Not applicable Other explanations: In May 2021 the Company's subsidiary Shenzhen Wuhu Industry Investment and Development Co. Ltd. (Wuhe Industry Investment and Development for short) acquired 35% of the equity of Shenzhen Facility Management Community Co. Ltd. (Facility Management Community for short or the Target Company) through equity acquisition and targeted capital increase. According to the equity acquisition cooperation framework agreement signed by the Wuhe Industry Investment and Development and the original shareholders the Facility Home and its original shareholders promised that the operating revenue growth ratio or net profit of the target company from 2021 to 2023 would reach the target value agreed in the agreement and the Wuhe Industry Investment and Development would assess its operating performance within three years. As of the reporting date the performance assessment has not been completed so its completion cannot be evaluated temporarily. 1912024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. According to the results of the goodwill impairment test if the recoverable amount is higher than its book value no provision for impairment of goodwill is required. 25. Long-term deferred expenses Unit: RMB Amount amortized Increase in the Item Beginning balance in the current Other decreases Ending balance current period period Renovation costs 21510397.88 9353705.75 8903786.44 -149772.94 22110090.13 Total 21510397.88 9353705.75 8903786.44 -149772.94 22110090.13 Other explanations: 26. Deferred tax assets/deferred tax liabilities (1) Deferred tax assets without offset Unit: RMB Ending balance Beginning balance Item Deductible temporary Deductible temporary Deferred tax assets Deferred tax assets differences differences Provision for asset 88995990.9221643089.0495315243.8621090356.76 impairment Unrealized profits of 436511360.97109127840.24437266319.66109316579.92 internal transactions Deductible losses 1152203588.06 287259758.96 607016948.61 151737271.44 Land value increment tax withdrawn for 3171733686.94 792933421.74 3911198870.69 977799717.67 deduction Estimated profit calculated from pre- 44109428.4011027357.1032620985.748155246.44 sale revenue of real estate enterprises Other accrued expenses 22746958.59 5629898.56 7694020.20 1923505.05 Lease liabilities 19127482.59 4531157.25 26502156.29 6417709.55 Total 4935428496.47 1232152522.89 5117614545.05 1276440386.83 (2) Deferred tax liabilities without offset Unit: RMB Ending balance Beginning balance Item Taxable temporary Taxable temporary Deferred tax liabilities Deferred tax liabilities differences differences Book value of fixed assets is greater than 440912.20 110228.04 704413.18 176103.29 tax basis Right-of-use assets 16972012.51 3989936.31 23516796.22 5686176.41 Total 17412924.71 4100164.35 24221209.40 5862279.70 1922024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. (3) Deferred tax assets or liabilities listed net amount after write-offs Unit: RMB Deduction amount of Ending balance of Deduction amount of Beginning balance of deferred tax assets and deferred tax assets or deferred tax assets and deferred tax assets or Item liabilities at the end of liabilities after write- liabilities from the liabilities after write- the period off beginning of the period off Deferred tax assets 1232152522.89 1276440386.83 Deferred tax liabilities 4100164.35 5862279.70 (4) Details of unconfirmed deferred tax assets Unit: RMB Item Ending balance Beginning balance Deductible temporary differences 1779067330.85 261260204.35 Deductible losses 321157984.91 254378951.24 Total 2100225315.76 515639155.59 (5) Deductible losses from unrecognized deferred tax assets will be expired in the following years Unit: RMB Year Ending amount Beginning amount Remark Year 2024 124895242.05 202522711013.8522711013.85 202614238807.0014238807.00 202781285680.1281285680.12 202811248208.2211248208.22 2029191674275.72 Total 321157984.91 254378951.24 Other explanations: 27. Other non-current assets Unit: RMB Ending balance Beginning balance Item Provision for Provision for Book balance Book value Book balance Book value impairment impairment Cost of contract 9590978.859590978.85 acquisition Prepayments for the purchase of fixed assets investment 1649428.99 1649428.99 870062.16 870062.16 properties intangible assets etc.Others 2635093.77 2635093.77 2635093.77 2635093.77 Total 13875501.61 13875501.61 3505155.93 3505155.93 1932024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Other explanations: The cost of contract acquisition is mainly the commissions of real estate sales contracts with a carry-over period of more than one year.Others mainly the written-down assets of investment properties because the asset involves the relocation business of the shantytown redevelopment in Chuanbu Street which will be handed over later with a term of more than one year. 28. Assets with restrictions on the ownership or right of use Unit: RMB Ending Beginning Item Book Restricted Restricted Book Restricted Restricted Book value Book value balance type condition balance type condition Guarantee deposit time Monetary 67316759. 67316759. Note 1 - 15659341. 15659341. deposit Frozen Frozen funds 82 82 Note 11 60 60 interest judicially frozen funds etc.Land use right of Lake City 40186732 40186732 38124610 38124610 Mortgage Note 12 Mortgage Note 9 Project 4.00 4.00 3.00 3.00 Phase II plot Land use right of Plot D of Shenyang Digital Intelligent 52339596 47427274 Mortgage Note 13 City 7.09 7.56 Project and Plot D constructio n in progress 99258005943456833969054439690544 Total 0.911.384.604.60 Other explanations: [Note 1]: Among the monetary funds with restricted right of use at the end of the period RMB 2950000.00 was the bank guarantee deposit of the subsidiary Shenzhen Shenfubao Property Development Co. Ltd.[Note 2]: Among the monetary funds with restricted right of use at the end of the period RMB 3000000.00 was frozen by the court due to pre-litigation preservation for contract disputes of the subsidiary Shenzhen Facility Management Community Co. Ltd.[Note 3]: Among the monetary funds with restricted right of use at the end of the period RMB 117500.00 was the bank guarantee deposit of the subsidiary Shenzhen Facility Management Community Co. Ltd.[Note 4]: Among the monetary funds with restricted right of use at the end of the period RMB 1000.00 was the POS machine deposit of the subsidiary Shenzhen Shenfubao Property Development Co. Ltd. Jiangxi Branch. 1942024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. [Note 5]: Among the monetary funds with restricted right of use at the end of the period RMB 203171.00 was frozen by the court due to pre-litigation preservation for contract disputes of the subsidiary Shenzhen Huangcheng Real Estate Co. Ltd.[Note 6]: Among the monetary funds with restricted right of use at the end of the period there are RMB 57490835.33 of time deposits purchased at the end of the period and their interest.[Note 7]: Among the monetary funds with restricted right of use at the end of the period RMB 50349.36 was the collection business guarantee of the subsidiary Shenzhen Jiayuan Property Management Co. Ltd.[Note 8]: Among the monetary funds with restricted right of use at the end of the period RMB 284323.30 was the frozen entrusted payment of the subsidiary Yangzhou Wohui Real Estate Co. Ltd.[Note 9]: Among the monetary funds with restricted right of use at the end of the period RMB 484000.00 was frozen by the court due to pre-litigation preservation for contractual disputes of the subsidiary Chongqing Shenguomao Real Estate Management Co.Ltd.[Note 10]: Among the monetary funds with restricted right of use at the end of the period RMB 1600000.00 was the bank guarantee deposit of the subsidiary Shenzhen Shenshan Special Cooperation Zone ITC Property Development Co. Ltd.[Note 11]: Among the monetary funds with restricted right of use at the end of the period there is RMB 1135580.83 which is the loan guarantee historically provided by the Company as a real estate developer and paid for the buyers of commercial housing according to the real estate operation practice.[Note 12]:Due to the needs of daily operating activities the Company applied for a loan from Industrial Bank Shenzhen Branch and mortgaged the land use right of the Lake City Project plot it held.[Note 13]: Due to the needs of daily operating activities the Company applied for a loan from Agricultural Bank of China Yangzhou Branch and mortgaged the land use right of Plot D of Shenyang Digital Intelligent City Project and the construction in progress of Plot D. 29. Short-term borrowings (1) Classification of short-term borrowings Unit: RMB Item Ending balance Beginning balance Credit borrowings 190165458.33 230915000.00 Total 190165458.33 230915000.00 Description of short-term borrowings classification: The credit borrowings (1) at the end of the period are used for the daily operation of the Company's subsidiary Shenzhen International Trade Center Property Management Co. Ltd. with the term of loan from September 30 2024 to September 27 2025.The credit borrowings (2) at the end of the period are used for the daily operation of the Company of subsidiary Shenzhen ITC Science and Technology Park Service Co. Ltd. and the term of loan is from September 30 2024 to September 27 2025.The credit borrowings (3) at the end of the period are used for the daily operation of the Company of subsidiary Shenzhen ITC Science and Technology Park Service Co. Ltd. and the term of loan is from December 23 2024 to December 22 2025. (2) Unpaid short-term borrowings in maturity The total amount of overdue and outstanding short-term borrowings at the end of the current period is RMB 0.00 of which the important overdue and outstanding short-term borrowings are as follows: Unit: RMB 1952024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Borrower Ending balance Borrowing interest rate Overdue time Overdue interest rate Other explanations: 30. Financial liabilities held for trading Unit: RMB Item Ending balance Beginning balance Including: Including: Other explanations: 31. Derivative financial liabilities Unit: RMB Item Ending balance Beginning balance Other explanations: 32. Notes payable Unit: RMB Category Ending balance Beginning balance The total amount of notes payable due but not paid at the end of the current period is RMB and the reason for the non-payment is. 33. Accounts payable (1) Presentation of accounts payable Unit: RMB Item Ending balance Beginning balance Payable for engineering construction 876393730.22 540851975.20 Estimated accounts payable 27094771.04 40980345.76 Others 139603776.01 81036738.63 Total 1043092277.27 662869059.59 (2) Significant accounts payable aging more than one year or overdue Unit: RMB Reason for no settlement or carrying- Item Ending balance forward Shenzhen Municipal Bureau of Planning and Land Resources 25000000.00 Problems left over from history China Construction Third Engineering Bureau Second The project payment milestone has not 19160962.25 Construction Engineering Co. Ltd been reached The project payment milestone has not China Construction Fourth Engineering Bureau Co. Ltd 12017672.93 been reached Shenzhen Qianhai Advanced Information Service Co. Ltd. 7126060.00 Unsettled project Total 63304695.18 1962024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Other explanations: 34. Other payables Unit: RMB Item Ending balance Beginning balance Dividends payable 12202676.04 12202676.04 Other payables 1219148760.34 1205100618.21 Total 1231351436.38 1217303294.25 (1) Interest payable Unit: RMB Item Ending balance Beginning balance Important overdue and unpaid interest situations: Unit: RMB Borrower Overdue amount Reason for overdue Other explanations: (2) Dividends payable Unit: RMB Item Ending balance Beginning balance Ordinary shares dividends 12202676.04 12202676.04 Total 12202676.04 12202676.04 Other notes including important dividends payable that have not been paid for more than 1 year shall disclose the reasons for non- payment: Item Amount of dividends payable Reason for non-payment Shenzhen Urban Landscaping The other party's company is Management Office 10869036.68 restructured and the payment objecthas not been clarified Labor Union Committee of Shenzhen The other party's company is Urban Landscaping Administration 1300000.00 restructured and the payment objecthas not been clarified Others 33639.36 Unable to obtain the balance paymentof the other party's account and unpaid Total 12202676.04 (3) Other payable 1) List other payable by nature of payment Unit: RMB Item Ending balance Beginning balance Deposit 308200904.93 290979176.07 Guarantee 9248840.93 11806030.93 1972024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Agency collection 4743853.11 4832329.12 Current accounts 651960088.72 611443690.41 Accrued expenses 148017114.40 200129074.12 Withholding payments 7494625.63 17030579.72 Others 89483332.62 68879737.84 Total 1219148760.34 1205100618.21 2) Other significant payable aging over one year or overdue Unit: RMB Reason for no settlement or carrying- Item Ending balance forward Yangzhou Tourism Development 345929298.79 Merge external related party transactions Property Co. Ltd.Shenzhen Property Jifa Warehousing Current accounts without specific 202296665.14 Co. Ltd. repayment period China Construction Third Engineering Bureau Second Construction Engineering 21597500.00 Guarantee Co. Ltd Shenzhen Qianhai WeBank Co. Ltd. 6872723.72 The lease term has not expired Shenzhen Tian'an International Building Current accounts without specific 5214345.90 Property Management Co. Ltd. repayment period Total 581910533.55 3) Other payable of the top ten ending balances collected by counterparts Other explanations: 35. Advances from customers (1) Presentation of advances from customers Unit: RMB Item Ending balance Beginning balance Rent 1744526.75 2265223.56 Total 1744526.75 2265223.56 (2) Important advances from customers with aging more than 1 year or overdue Unit: RMB Reason for no settlement or carrying- Item Ending balance forward Unit: RMB Item Changes Reason for changes 36. Contract liabilities Unit: RMB 1982024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Item Ending balance Beginning balance House payment received in advance 266400127.35 747372309.30 Property management fees received in advance 20619767.27 30554843.87 Other accounts received in advance 49144735.10 42497800.25 Total 336164629.72 820424953.42 Significant contract liabilities with aging over 1 year Unit: RMB Reason for no settlement or carrying- Item Ending balance forward Amount and reasons for significant changes in book value during the reporting period Unit: RMB Item Changes Reason for changes The Company shall comply with the disclosure requirements for the real estate industry as set out in the Guidelines for Self- Regulation of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure Payment information for the top five pre-sale projects: Unit: RMB Beginning Estimated Pre sale No. Project Ending balance balance completion time ratio 1 Lake City Project 0.00 211616690.06 September 10 2026 22.16% 2 SZPRD · Yutang Shangfu 736148224.77 25548025.75 38.88% 3 SZPRD · Golden Ling Holiday 10551555.51 27832532.63 98.64% 4 SZPRD · Junfeng Lishe 0.00 761904.76 100.00% SZPRD · Lakeside Royal View Phase 5560458.72458431.1196.26% II 37. Employee compensation payable (1) Presentation of employee compensation payable Unit: RMB Increase in the current Decrease in the current Item Beginning balance Ending balance period period I. Short-term 217869071.67862915229.30874631941.82206152359.15 compensation II. Post-employment benefits-defined 738881.08 89934559.17 89130481.01 1542959.24 contribution plans III. Dismissal benefits 178159.03 4499678.10 4394463.91 283373.22 Total 218786111.78 957349466.57 968156886.74 207978691.61 (2) Presentation of short-term compensation Unit: RMB Increase in the current Decrease in the current Item Beginning balance Ending balance period period 1. Salaries bonuses 203201469.12 755511700.53 765968053.08 192745116.57 allowances and 1992024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. subsidies 2. Employee benefits 1049437.80 3367157.51 2389515.31 2027080.00 3. Social insurance 16164.8228311653.2528277162.5350655.54 premiums Including: medical insurance 13883.77 24337317.72 24305142.20 46059.29 premiums Work- related injury insurance 15.96 1712689.30 1711371.23 1334.03 premiums Maternity 2265.092261646.232260649.103262.22 insurance premiums 4. Housing provident 1165851.8828335395.3629074357.71426889.53 funds 5. Trade union funds and employee 8492080.90 13679547.06 14799741.69 7371886.27 education expenses 8. Non-monetary 3944067.1533709775.5934123111.503530731.24 benefits Total 217869071.67 862915229.30 874631941.82 206152359.15 (3) Presentation of defined contribution plans Unit: RMB Increase in the current Decrease in the current Item Beginning balance Ending balance period period 1. Basic endowment 21042.0670356095.7869497556.80879581.04 insurance premiums 2. Unemployment 2716.403151906.723150466.944156.18 insurance premiums 3. Enterprise annuity 715122.6216426556.6716482457.27659222.02 payment Total 738881.08 89934559.17 89130481.01 1542959.24 Other explanations: 38. Taxes payable Unit: RMB Item Ending balance Beginning balance Value-added tax 21171620.44 17768402.21 Corporate income tax 21591154.75 91035828.65 Individual income tax 4310388.69 3681965.62 Urban maintenance and construction tax 1320722.47 981394.80 Land value increment tax 3173186258.33 3911198870.69 Land use taxes 179847.49 180900.74 Property taxes 396616.98 539730.69 Education surcharge 684508.74 644625.80 Local education surcharges 530482.69 322573.66 Others 908828.94 603055.08 2002024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Total 3224280429.52 4026957347.94 Other explanations: 39. Liabilities held for sale Unit: RMB Item Ending balance Beginning balance Other explanations: 40. Non-current liabilities maturing within one year Unit: RMB Item Ending balance Beginning balance Long-term borrowings maturing within 498259873.753075993789.05 one year Long-term payables due within one year 400000.00 400000.00 Lease liabilities maturing within one year 8042802.55 15931064.02 Total 506702676.30 3092324853.07 Other explanations: 41. Other current liabilities Unit: RMB Item Ending balance Beginning balance Output tax to be transferred 23186263.57 68373661.13 Total 23186263.57 68373661.13 Increases or decreases in short-term bonds payable: Unit: RMB Amort Whet Withd izatio Repay her Issued rawal Nomi Begin n of ment Endin there Issue in the of Bond Book nal Issue Bond ning premi in the g is Amou curren intere name value intere date term balanc um curren balanc breac nt t st at st rate e and t e h of period par discou period contra value nt ct Total Other explanations: 42. Long-term borrowings (1) Classification of long-term borrowings Unit: RMB Item Ending balance Beginning balance 2012024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Pledged loan 151915696.00 373646731.07 Mortgage loan 4424348935.26 625842543.40 Credit borrowings 179050000.00 400400000.00 Total 4755314631.26 1399889274.47 Description of the classification of long-term borrowings: The pledged loan at the end of the period was used for the acquisition of 100% equity of five property management companies Shenzhen Property Management Co. Ltd. Shenzhen Foreign Trade Property Management Co. Ltd. Shenzhen Shenfubao Property Development Co. Ltd. Shenzhen Shenfubao Municipal Service Co. Ltd. and Shenzhen Bonded Zone Security Service Co. Ltd. by the subsidiary of the Company Shenzhen International Trade Center Property Management Co. Ltd. The term of loan is from May 18 2022 to April 26 2027 and the pledge is 100% equity of the five companies held by Shenzhen International Trade Center Property Management Co. Ltd.At the end of the period the mortgage loan (1) was used for the development of Guangming Yutang Shangfu Project of Shenzhen Guangming Wuhui Real Estate Co. Ltd. (hereinafter referred to as Guangming Wuhui) a subsidiary of the Company. The term of loan was from July 27 2022 to May 24 2028. The collateral was the land use right of Guangming Yutang Shangfu Project held by Guangming Wuhui and the mortgage has been released.The mortgage loan (2) at the end of the period was used for the development of the Humen Harbour Palace Project of the Company's subsidiary Dongguan Wuhe Real Estate Co. Ltd. (hereinafter referred to as Dongguan Wuhe). The term of loan was from August 5 2022 to August 5 2027. The collateral was the land use right of the Harbour Palace Garden Project held by Dongguan Wuhe and the mortgage has been released.The mortgage loan (3) at the end of the period was used for the development of Lake City Project of Shenzhen Rongyao Real Estate Development Co. Ltd. (hereinafter referred to as Rongyao Real Estate) a subsidiary of the Company. The term of loan was from March 17 2023 to March 17 2026. The collateral was the land use right of Lanhushidai Project held by Rongyao Real Estate and the Company provided joint and several liability guarantee.The mortgage loan (4) at the end of the period was used for the development of Shenyang Digital Intelligent City Project of Yangzhou Wuhe Real Estate Co. Ltd. (hereinafter referred to as Yangzhou Wuhe) a subsidiary of the Company. The term of loan was from January 19 2024 to January 19 2029. The collateral was the land use right of Plot D of Shenyang Digital Intelligent City Project and the construction in progress of Plot D held by Yangzhou Wohui and joint and several liability guarantee was provided by the Company and Yangzhou Lvfa Real Estate Co. Ltd.The mortgage loan (5) at the end of the period is used for development of the Lake City Project of its subsidiary Shenzhen Rongyao Real Estate Development Co. Ltd. (hereinafter referred to as Rongyao Real Estate). The term of loan is from November 29 2019 to November 20 2026. The pledge is 69% of the equity of Rongyao Real Estate held by the Company and the Company provides joint and several liability guarantee.The credit borrowings at the end of the period were used for the daily operation of the Company's subsidiary Shenzhen International Trade Center Property Management Co. Ltd. with the term of loan from September 27 2024 to September 27 2026.Other explanations including interest rate range: 2022024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. 43. Bonds payable (1) Bonds payable Unit: RMB Item Ending balance Beginning balance (2) Increase or decrease in bonds payable (excluding preferred shares perpetual bonds and other financial instruments classified as financial liabilities) Unit: RMB Amort Whet Withd izatio Repay her Issued rawal Nomi Begin n of ment Endin there Issue in the of Bond Book nal Issue Bond ning premi in the g is Amou curren intere name value intere date term balanc um curren balanc breac nt t st at st rate e and t e h of period par discou period contra value nt ct Total —— —— (3) Description of convertible corporate bonds (4) Description of other financial instruments classified as financial liabilities Changes of outstanding financial instruments such as preferred shares and perpetual bonds at the period-end Table of changes of outstanding financial instruments such as preferred shares and perpetual bonds at the period-end Unit: RMB Outstandin Increase in the current Decrease in the currentBeginning Ending g financial period period instruments Number Book value Number Book value Number Book value Number Book value Description of the basis for classifying other financial instruments as financial liabilities Other explanations: 44. Lease liabilities Unit: RMB Item Ending balance Beginning balance Lease payments 21312666.88 34767450.58 Unrecognized financing expenses -2180791.76 -8265294.29 Less: Lease liability maturing within one -8042802.55-15931064.02 year Total 11089072.57 10571092.27 Other explanations: 2032024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. 45. Long-term payables Unit: RMB Item Ending balance Beginning balance Long-term payables 399749550.00 400105655.56 Total 399749550.00 400105655.56 (1) Presentation of long-term payables by nature of payment Unit: RMB Item Ending balance Beginning balance Sale and leaseback financing funds 399749550.00 400105655.56 Other explanations: The long-term payables at the period-end were the sale and leaseback financing between the Company and Maxwealth Financial Leasing Co. Ltd. with the lease term from December 22 2023 to December 22 2027. (2) Special payables Unit: RMB Increase in the Decrease in the Item Beginning balance Ending balance Formation causes current period current period Other explanations: 46. Long-term employee compensations payable (1) Statement of long-term employee compensations payable Unit: RMB Item Ending balance Beginning balance (2) Changes in defined benefit plans Present value of defined benefit plan obligations: Unit: RMB Item Amount in the current period Amount in the previous period Plan assets: Unit: RMB Item Amount in the current period Amount in the previous period Net liabilities (net assets) under defined benefit plans Unit: RMB Item Amount in the current period Amount in the previous period Description of the content of the defined benefit plans and the risks associated with it and the impact on the Company's future cash flows time and uncertainty: 2042024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Description of major actuarial assumptions and sensitivity analysis results of defined benefit plans: Other explanations: 47. Estimated liabilities Unit: RMB Item Ending balance Beginning balance Formation causes * Litigation between Basepoint and Facility Management Community Pending litigation 934205.51 650000.00 * Litigation between Overseas Friendship Building and Jin Hailian Total 934205.51 650000.00 Other explanations including relevant important assumptions and estimation notes of important estimated liabilities: See Note XVI-2 for details 48. Deferred income Unit: RMB Increase in the Decrease in the Item Beginning balance Ending balance Formation causes current period current period Other explanations: 49. Other non-current liabilities Unit: RMB Item Ending balance Beginning balance Special fund for public utilities 537155.06 549961.59 Building structure maintenance fund 14746480.42 15997716.45 Guarantee for admission 6660398.31 6335914.04 Electrical equipment maintenance fund 4019415.44 4019415.44 Escrow maintenance fund 52435075.20 52002751.04 Co-investment capital from 40000000.0040000000.00 Guanlanbuling Project's employees Others 8521004.59 8133466.98 Total 126919529.02 127039225.54 Other explanations: 50. Share capital Unit: RMB Changes during the period (+ -) Beginning Conversion Ending balance New shares of providentBonus issue Others Sub-total balance issued fund into shares 595979092.595979092. Total shares 0000 2052024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Other explanations: 51. Other equity instruments (1) Changes of outstanding financial instruments such as preferred shares and perpetual bonds at the period-end (2) Table of changes of outstanding financial instruments such as preferred shares and perpetual bonds at the period-end Unit: RMB Outstandin Increase in the current Decrease in the currentBeginning Ending g financial period period instruments Number Book value Number Book value Number Book value Number Book value Changes of other equity instruments in the current period explanation of the reasons for the changes and the basis for relevant accounting treatment: Other explanations: 52. Capital reserve Unit: RMB Increase in the current Decrease in the current Item Beginning balance Ending balance period period Other capital reserves 80488045.38 80488045.38 Total 80488045.38 80488045.38 Other explanations including the increase and decrease in the current period and the reasons for the changes: 53. Treasury shares Unit: RMB Increase in the current Decrease in the current Item Beginning balance Ending balance period period Other explanations including the increase and decrease in the current period and the reasons for the changes: 54. Other comprehensive income Unit: RMB Amount in the current period Less: the Less: amount retained included in income other Amount included in comprehen other Attributabl Beginning before Attributablsive comprehen Less: e to EndingItem balance income tax e to parentincome in income tax minority balance in the sive company prior period income in expenses shareholdercurrent after tax and period prior s after tax transferred periods and to current transferred profit or to current loss profit or 2062024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. loss I. Other comprehensive - - income that cannot 3004584.8 -60387.90 -60387.90 3064972.7 be reclassified into 0 0 profit or loss Fair value changes of - - investments in 3004584.8 -60387.90 -60387.90 3064972.7 other equity 0 0 instruments II. Other comprehensive -1212370.11212370.1 income to be 864617.03 347753.0811 reclassified into profit or loss later Foreign currency - 1212370.1 1212370.1 864617.03 translation 347753.08 1 1 differences Total of other - - 1151982.21151982.2 comprehensive 3352337.8 2200355.6 11 income 8 7 Other explanations including the adjustment of the effective portion of the profit or loss of the cash flows hedge to the initial recognized amount of the hedged item: 55. Special reserves Unit: RMB Increase in the current Decrease in the current Item Beginning balance Ending balance period period Other explanations including the increase and decrease in the current period and the reasons for the changes: 55. Surplus reserves Unit: RMB Increase in the current Decrease in the current Item Beginning balance Ending balance period period Statutory surplus 115743323.959316761.13125060085.08 reserve Discretionary surplus 365403.13365403.13 reserve Total 116108727.08 9316761.13 125425488.21 Explanations of the surplus reserve including the changes in the current period and the reasons for the changes: 57. Undistributed profits Unit: RMB Item Current period Previous period Retained earnings as at the end of the 3872586802.17 3692753832.81 2072024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. previous period before the adjustment Undistributed profits at the beginning of 3872586802.173692753832.81 the period after adjustment Plus: Net profit attributable to owners of -1114764922.17464014492.11 the parent company in this period Less: Withdrawal of statutory surplus 9316761.1367216150.98 reserves Common stock dividends payable 185945476.70 215148452.21 Others 568863.59 1816919.56 Undistributed profits as at the end of the 2561990778.583872586802.17 period Details of adjustment to undistributed profits as at the beginning of the period: 1) Due to the retroactive adjustment of the Accounting Standards for Business Enterprises and its related new regulations the opening undistributed profits was RMB0. 2) Due to the change in accounting policies the opening undistributed profits was RMB0. 3) Due to the correction of major accounting errors the opening undistributed profits was RMB0. 4) Due to the change of consolidation scope caused by the same control the opening undistributed profits was RMB0. 5)The total impact of other adjustments on the opening undistributed profits was RMB0. 58. Operating revenue and operating costs Unit: RMB Amount in the current period Amount in the previous period Item Revenue Cost Revenue Cost Primary business 2670640573.12 2249277554.33 2947291675.00 2233525382.49 Other business 63518310.93 736534.00 17825350.04 Total 2734158884.05 2250014088.33 2965117025.04 2233525382.49 Whether the audited net profit after deducting non-recurring profit or loss was negative □Yes □ No Unit: RMB Item Current year Specific deductions Previous year Specific deductions Business revenue irrelevant to primary Business revenue business irrelevant to primary is deducted mainly business including is deducted mainly revenue from including compensation for revenue from Amount of operating temporary resettlement 2734158884.05 2965117025.04 compensation for revenue due to shantytown temporary resettlement transformation at due to shantytown Chuanbu Street transformation at and revenue from Chuanbu Street compensation for and consulting service demolition of Fenghe revenue Rili and revenue from consulting services Total amount of Business revenue Business revenue63518310.93 17825350.04 operating revenue irrelevant to primary irrelevant to primary 2082024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. deduction items business business is deducted mainly is deducted mainly including including revenue from revenue from compensation for compensation for temporary resettlement temporary resettlement due to shantytown due to shantytown transformation at transformation at Chuanbu Street Chuanbu Street and revenue from and consulting service compensation for revenue demolition of Fenghe Rili and revenue from consulting services Proportion of total amount of operating revenue deduction 2.32% 0.60% items in operating revenue I. Business revenue not related to the main business 1. Other business revenue other than Business revenue normal operations. For irrelevant to primary example the revenue Business revenue business realized from the lease irrelevant to primary is deducted mainly of fixed assets business including intangible assets is deducted mainly revenue from packaging materials including compensation for sales of materials revenue from temporary resettlement exchange of non- 63518310.93 17825350.04 compensation for due to shantytown monetary assets with temporary resettlement transformation at materials entrusted due to shantytown Chuanbu Street management business transformation at and revenue from etc. and the income Chuanbu Street compensation for that is included in the and consulting service demolition of Fenghe income from primary revenue Rili and revenue from business but is not part consulting services of the normal operation of the listed company.Business revenue irrelevant to primary Business revenue business irrelevant to primary is deducted mainly business including is deducted mainly revenue from including compensation for Subtotal of business revenue from temporary resettlement revenue not related to 63518310.93 17825350.04 compensation for due to shantytown main business temporary resettlement transformation at due to shantytown Chuanbu Street transformation at and revenue from Chuanbu Street compensation for and consulting service demolition of Fenghe revenue Rili and revenue from consulting services 2092024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. II. Revenue without commercial substance Subtotal of revenue without commercial 0.00 No deductions in 2024 0.00 No deductions in 2023 substance III. Other revenue not related to the main 0.00 No deductions in 2024 0.00 No deductions in 2023 business or without commercial substance Business revenue irrelevant to primary Business revenue business irrelevant to primary is deducted mainly business including is deducted mainly revenue from including compensation for revenue from Operating revenue after temporary resettlement 2670640573.12 2947291675.00 compensation for deduction due to shantytown temporary resettlement transformation at due to shantytown Chuanbu Street transformation at and revenue from Chuanbu Street compensation for and consulting service demolition of Fenghe revenue Rili and revenue from consulting services Breakdown of operating revenue and operating costs: Unit: RMB Contract Division 1 Division 2 Total classificati Operating Operating Operating Operating Operating Operati Operating Operating on revenue costs revenue costs revenue ng costs revenue costs Business 27341588 22500140 27341588 22500140 type 84.05 88.33 84.05 88.33 Including: 10037801843578721003780184357872 Real estate 19.171.7519.171.75 Property 15944883132067111594488313206711 manageme 41.4901.8641.4901.86 nt Lease 13589042 85764264. 13589042 85764264.operation 3.39 72 3.39 72 Classificati on by 27341588 22500140 27341588 22500140 business 84.05 88.33 84.05 88.33 area Including: Shenzhen 23169735 18570306 23169735 18570306 area 57.44 16.82 57.44 16.82 41718532392983474171853239298347 Other areas 6.611.516.611.51 Market or customer type 2102024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Including: Contract type Including: Classificati on by time of commodity transfer Including: Classificati on by contract period Including: Classificati on by sales channel Including: Total Information related to performance obligations: Types of Amounts Nature of the quality Whether it is assumed by the Time to fulfill goods the assurance Important the main Company that Item performance Company provided by the payment terms responsible are expected to obligations undertakes to Company and person be refunded to transfer related customers obligations Other explanations Information related to the transaction prices allocated to the remaining performance obligations: The amount of revenue corresponding to the performance obligations that had been signed but not yet performed or not yet completed at the end of the reporting period was RMB336164629.72 of which RMB87001721.46 was expected to be recognized as revenue in 2025 RMB2263178.61 was expected to be recognized as revenue in 2026 and RMB246899729.65 was expected to be recognized as revenue in 2027-2028.Information about the variable consideration in the contract: Major contract change or major transaction prices adjustment of parent company Unit: RMB Item Accounting treatments Amount of impact on revenue Other explanations: 2112024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. The Company shall comply with the disclosure requirements for the real estate industry as set out in the Guidelines for Self- Regulation of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure Information on the top five items in terms of revenue recognized during the reporting period: Unit: RMB No. Project Income amount 1 SZPRD · Yutang Shangfu 753573143.97 2 SZPRD · Golden Ling Holiday 155550824.77 3 SZPRD · Songhu Langyuan 2028060.93 4 SZPRD · Lakeside Royal View Phase II 182458.72 5 SZPRD · Lakeside Royal View Phase I 114678.90 59. Taxes and surcharges Unit: RMB Item Amount in the current period Amount in the previous period Urban maintenance and construction tax 4422844.05 7295168.53 Education surcharge 1906313.24 3290186.80 Property taxes 10869473.40 11160717.95 Land use taxes 2135524.88 2118518.10 Local education surtax 1271801.53 2153783.29 Land value increment tax 64009266.08 78815376.80 Other taxes 2296727.51 1816495.35 Total 86911950.69 106650246.82 Other explanations: 60. G&A expenses Unit: RMB Item Amount in the current period Amount in the previous period Employee compensation 214830675.48 228440720.91 Administrative office expenses 22204967.59 26172003.04 Amortization and depreciation cost of 26963578.4324574492.30 assets Litigation costs 808759.23 5304840.82 Others 19625121.01 26086318.08 Total 284433101.74 310578375.15 Other explanations: 61. Selling and distribution expenses Unit: RMB Item Amount in the current period Amount in the previous period Intermediary agency fees 9576621.10 7326766.93 Consulting and sales service fees 7170279.84 7845564.84 Advertising and publicity expenses 8545172.46 10747667.28 Employee compensation 10375132.31 9989326.02 Others 8328779.70 10847833.50 2122024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Total 43995985.41 46757158.57 Other explanations: 62. R&D expenses Unit: RMB Item Amount in the current period Amount in the previous period Employee compensation 4816649.05 3808250.90 Depreciation and amortization cost 28482.42 65160.46 Others 506676.97 260073.01 Total 5351808.44 4133484.37 Other explanations: 63. Financial expenses Unit: RMB Item Amount in the current period Amount in the previous period Interest expenses 68401770.57 55928873.37 Less: interest income -31389808.25 -19183529.19 Profit or loss on exchange 778902.74 761442.10 Service fee and others 3252783.69 6339243.02 Total 41043648.75 43846029.30 Other explanations: 64. Other income Unit: RMB Source of other income Amount in the current period Amount in the previous period Government grants related to revenue 3059786.92 7802977.21 Refund of service fee for withholding 314568.77382244.19 individual income tax Additional deduction of value-added tax -834439.225302600.13 input Refund of value-added tax 2021797.08 1944370.99 Total 4561713.55 15432192.52 65. Gains from changes in fair value Unit: RMB Sources of gains from changes in fair Amount in the current period Amount in the previous period value Other explanations: 66. Investment income Unit: RMB Item Amount in the current period Amount in the previous period Long-term equity investment income 184223509.99 4339433.24 2132024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. calculated under the equity method Investment income from disposal of 1450000.00701420219.12 long-term equity investments Gain on restructuring of debt -54026.93 Total 185619483.06 705759652.36 Other explanations: 67. Credit loss Unit: RMB Item Amount in the current period Amount in the previous period Losses from bad debts of accounts -9475193.14-13454920.44 receivable Bad debt loss of other receivables -353613204.14 -6390032.43 Total -363088397.28 -19844952.87 Other explanations: 68. Assets impairment loss Unit: RMB Item Amount in the current period Amount in the previous period I. Inventories depreciation loss and contract performance cost impairment -1036113360.07 -212173623.03 losses Total -1036113360.07 -212173623.03 Other explanations: 69. Gains from disposal of assets Unit: RMB Source of gains from disposal of assets Amount in the current period Amount in the previous period Gains on disposal of fixed assets ("-" for -10823.664611.81 losses) Gains on disposal of right-of-use assets 98669.52594704.56 ("-" for losses) Others 234052.82 70. Non-operating revenue Unit: RMB Amount included in the Amount in the previous Item Amount in the current period current non-recurring profit or period loss Gains from the damage and scrapping of non-current 240.00 16447.29 240.00 assets Confiscated income 544705.46 2041279.63 544705.46 Gains from unclaimed 34134.00 2142024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. payables Gains from inventory surplus 300.00 Others 522860.11 1512516.17 522860.11 Total 1067805.57 3604677.09 1067805.57 Other explanations: 71. Non-operating expenses Unit: RMB Amount included in the Amount in the previous Item Amount in the current period current non-recurring profit or period loss Donations made 8000.00 79840.57 8000.00 Loss from the damage and scrapping of non-current 187340.31 142785.08 187340.31 assets Litigation expenses 1879644.55 694346.32 1879644.55 Extraordinary losses 4000.00 8800.00 4000.00 Penalties and late fees 372270.64 1962837.07 372270.64 Others 5904708.99 3615895.16 5904708.99 Total 8355964.49 6504504.20 8355964.49 Other explanations: 72. Income tax expenses (1) Income tax expenses schedule Unit: RMB Item Amount in the current period Amount in the previous period Income tax expenses for the current 50805402.42142880361.95 period Deferred tax expenses 42525748.58 113993935.97 Total 93331151.00 256874297.92 (2) Adjustment process of accounting profits and income tax expenses Unit: RMB Item Amount in the current period Total profits -1193812573.11 Income tax expenses calculated at statutory/applicable tax rate -298453143.28 Influence of different tax rates applicable to subsidiaries -2791596.78 Influence of adjustments to the income tax for the prior years 6201413.84 Influence of non-taxable income -46055877.50 Influence of nondeductible costs expenses and losses 7307580.46 Influence of deductible losses on the use of preliminarily -11535731.39 unrecognized deferred tax assets in previous periods Effect of deductible temporary differences or deductible losses 439996457.76 from deferred tax assets unrecognized in the current period 2152024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Tax impact of the addition for the deduction of R&D expenses -1337952.11 Income tax expenses 93331151.00 Other explanations: 73. Other comprehensive income See Note VII-54 for details. 74. Items of statement of cash flows (1) Cash related to operating activities Other cash received related to operating activities Unit: RMB Item Amount in the current period Amount in the previous period Large current accounts received 278508648.94 117918299.90 Interest income received 40033974.92 19183529.19 Net amount of various deposits 102896047.58114428356.99 guarantees and special funds received Government grants received 3059786.92 7802977.21 Other miscellaneous funds received 45871591.13 88094832.06 Decrease in restricted funds the current 12490938.877835036.35 period Total 482860988.36 355263031.70 Notes to other cash received related to operating activities: Other cash paid related to operating activities Unit: RMB Item Amount in the current period Amount in the previous period G&A expenses paid in cash 39111851.22 63006009.01 Selling and distribution expenses paid in 18208447.5836673353.00 cash Net amount of various payments and receipts on behalf of others such as paid 170693541.68 115368992.19 utilities Other miscellaneous funds paid 130134090.94 41068618.68 Increase in restricted funds in the current 3570155.2115659341.60 period Total 361718086.63 271776314.48 Notes to other cash paid related to operating activities: (2) Cash related to investing activities Other cash received related to investing activities Unit: RMB Item Amount in the current period Amount in the previous period Important cash received related to investing activities Unit: RMB Item Amount in the current period Amount in the previous period 2162024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Net cash received from disposal of fixed assets intangible assets and other long- 55903425.50 92191.39 term assets Net cash received from disposal of 634578885.34 subsidiaries and other business units Total 55903425.50 634671076.73 Notes to other cash received related to investing activities: Other cash paid related to investing activities Unit: RMB Item Amount in the current period Amount in the previous period Important cash paid related to investing activities Unit: RMB Item Amount in the current period Amount in the previous period Purchase of time deposits 57412000.00 Total 57412000.00 Notes to other cash paid related to investing activities: (3) Cash related to financing activities Other cash received related to financing activities Unit: RMB Item Amount in the current period Amount in the previous period Received sale and leaseback financing 400000000.00 funds Total 400000000.00 Notes to other cash received related to financing activities: Other cash paid related to financing activities Unit: RMB Item Amount in the current period Amount in the previous period Amount paid for repayment of lease 16584505.6425266936.77 liabilities Cash consideration paid by the combining party of business combination 568863.591816919.56 under common control on the combination date Amount paid for sale and leaseback 18693137.50 Other miscellaneous funds paid 1368000.00 Total 37214506.73 27083856.33 Notes to other cash paid related to financing activities: Changes in various liabilities arising from financing activities □Applicable □ Not applicable Unit: RMB Increase in the current period Decrease in the current period Beginning Item Ending balance balance Non-cash Non-cashCash changes Cash changes changes changes Short-term 4706798063. 1239948405. 200116495.53 703084938.71 38062.20 5443739963. 2172024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. borrowings and 52 21 35 long-term borrowings Lease liabilities 26502156.29 9214224.47 16584505.64 19131875.12 Long-term 400505655.5618337031.9418693137.50400149550.00 payables 5133805875.1239948405.5863021388. Total 227667751.94 738362581.85 38062.20 372147 (4) Notes to cash flows expressed in net amount Basis for presentation of net Item Relevant facts Financial impact amount (5) Significant activities and financial impacts that do not involve current cash receipts and payments but affect the financial position of the enterprise or may affect the cash flows in the future Not applicable 75. Supplementary information to the statement of cash flows (1) Supplementary information to the statement of cash flows Unit: RMB Supplementary information The current period Amount in previous period 1. Net profit adjusted to cash flows from operating activities: Net profit -1287143724.11 449858861.48 Plus: provision for assets impairment 1399201757.35 232018575.90 Depreciation of fixed assets depletion of oil and gas assets 51987250.8055281119.81 depreciation of productive biological assets Depreciation of right-of-use assets 13691114.95 18139758.01 Amortization of intangible assets 418235.75 379581.77 Amortization of long-term deferred expenses 8903786.44 7726470.46 Losses from disposal of fixed assets intangible assets and -87845.86-833369.19 other long-term assets ( "-" for gains) Losses on write-off of fixed assets ("-" for gains) 187580.31 126337.79 Losses from changes in fair value ("-" for gains) Financial expenses ("-" for gains) 68369233.02 55167431.27 Investments losses ("-" for gains) -185619483.06 -705759652.36 Decreases in deferred tax assets (“-” for increases) 44287863.94 131110960.37 Increase in deferred tax liabilities ("-" for decreases) -1762115.35 -17117024.40 Decreases in inventories ("-" for increases) -495134772.53 -485801483.89 Decreases in operating receivables (“-” for increases) -79181787.39 -69297620.74 Increases in operating payables (“-” for decreases) -962115268.78 64907069.39 Others Net cash flows from operating activities -1423998174.52 -264092984.33 2182024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. 2. Significant investing and financing activities not involving in cash receipts and payments: Transfer of debts into capital Convertible corporate bonds maturing within 1 year Fixed assets leased from financing 3. Net change in cash and cash equivalents: Ending balance of cash 1610799884.30 2733139135.12 Less: beginning balance of cash 2733139135.12 1509693857.48 Plus: ending balance of cash equivalents Less: beginning balance of cash equivalents Net increase in cash and cash equivalents -1122339250.82 1223445277.64 (2) Net cash paid for acquisition of subsidiaries in the current period Unit: RMB Amount Including: Including: Including: Other explanations: (3) Net cash received for disposal of subsidiaries in the current period Unit: RMB Amount Including: Including: Including: Other explanations: (4) Breakdowns of cash and cash equivalents Unit: RMB Item Ending balance Beginning balance I. Cash 1610799884.30 2733139135.12 Including: cash on hand 10705.64 75265.01 Unrestricted bank deposits 1610628980.11 2729897603.00 Other unrestricted monetary funds 160198.55 3166267.11 III. Ending balance of cash and cash equivalents 1610799884.30 2733139135.12 2192024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. (5) Limited use but still presented as cash and cash equivalents Unit: RMB Amount in previous Reasons for classified as cash and cash Item The current period period equivalents This was the capital within the pre-sale supervision quota of the project. Potevio could apply for paying the construction Pre-sale funds of Guangming 249758757.74 640559629.03 expenditure and relevant statutory taxes of Yutang Shangfu Project the project in accordance with the relevant regulations on the supervision of pre-sale funds.This was the capital within the pre-sale supervision quota of the project. Potevio could apply for paying the construction Pre-sale funds of Lake City 222638954.72 0.00 expenditure and relevant statutory taxes of Project the project in accordance with the relevant regulations on the supervision of pre-sale funds.Total 472397712.46 640559629.03 (6) Monetary funds not classified as cash and cash equivalents Unit: RMB Reasons for not classified as Item The current period Amount in previous period cash and cash equivalents Time deposits and interest Bank deposits 57490835.33 8644166.67 thereon Bank deposits 3972494.30 3681570.32 Frozen funds Other monetary funds 5853430.19 3333604.61 Guarantees and interests Total 67316759.82 15659341.60 Other explanations: (7) Notes on other significant activities 76. Notes to the statements of changes in owners' equity Specify the name of "others" items adjusted to the ending balance of the previous year the adjusted amount and other matters: Not applicable 77. Foreign currency monetary items (1) Foreign currency monetary items Unit: RMB Ending balance of foreign Ending balance of translated Item Exchange rate of conversion currency RMB Monetary funds 70111942.78 2202024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Including: USD 120000.00 7.1884 862608.00 EUR HKD 66353838.64 0.9260 61443654.59 VND 27292588042.00 0.000286 7805680.19 Accounts receivable 5823336.00 Including: USD EUR HKD VND 20361314648.00 0.000286 5823336.00 Long-term borrowings Including: USD EUR HKD Prepayment 73069.50 Including: VND 225325888.00 0.000286 64443.20 HKD 9315.65 0.9260 8626.30 Other receivables 5165941.19 Including: VND 735343648.00 0.000286 210308.28 HKD 5351655.41 0.9260 4955632.91 Accounts payable 668751.75 Including: VND 2338292855.00 0.000286 668751.75 HKD Other payables 6038836.82 Including: VND 7583117695.00 0.000286 2168771.66 HKD 4179336.03 0.9260 3870065.16 Other explanations: (2) Description of foreign operating entities including for significant foreign operating entities disclosure of their principal place of business outside of the country the recording currency and the basis of selection and disclosure of the reasons for any change in the recording currency □Applicable □ Not applicable Item Main premiseoverseas Recording currency Basis for selection of recording currency Shum Yip Properties Development Hong Kong HKD The company is located in Hong Kong and isLimited and its subsidiaries mainly settled in HKD Vietnam Shenzhen International Trade Center Property Management Co. Vietnam VND The company is located in Vietnam and mainly Ltd. settles in VND 78. Lease (1) The Company acted as lessee: □Applicable □ Not applicable Variable lease payments not included in the measurement of lease liabilities □ Applicable □Not applicable Lease expense of short-term leases or low-value assets with simplified treatment 2212024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. □Applicable □ Not applicable Item Amount in thecurrent period Short-term leases expenses 7124442.06 Low-value lease expenses Variable lease payments not included in the measurement of lease liabilities Total 7124442.06 The total cash flows related to leases in the current year amounted to RMB 42402085.20.Situations involving sale and leaseback transactions In December 2023 the Company signed a sale and leaseback contract with Maxwealth Financial Leasing Co. Ltd. agreeing to transfer part of the office facilities with a leaseback period of 48 months. Since the fixed assets had not been transferred to the buyer from beginning to end it was judged that it did not belong to sales and the payment received was accounted for as a liability. (2) The Company acted as the lessor Operating lease as lessor □Applicable □ Not applicable Unit: RMB Including: revenue related to variable Item Lease income lease payments not included in lease receipts Lease item 135890423.39 0.00 Total 135890423.39 0.00 Financing lease as the lessor □ Applicable □Not applicable Undiscounted lease receipts for each of the next five years □Applicable □ Not applicable Unit: RMB Annual undiscounted lease receipts Item Ending amount Beginning amount The First year 110941561.06 124863019.23 The Second year 77676433.74 70271138.44 The Third year 56801516.42 42292889.70 The Fourth year 37483824.97 32718754.54 The Fifth year 24132445.44 24297422.32 Total undiscounted lease receipts after 15978340.3714891056.43 five years Reconciliation of undiscounted lease receipts and net lease investment (3) Recognize the profit or loss from financing lease sales as a manufacturer or distributor □Applicable □Not applicable 2222024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. 79. Data resources 80. Others Not applicable VIII. R&D expenditures Unit: RMB Item Amount in the current period Amount in the previous period Employee compensation 4816649.05 3808250.90 Depreciation and amortization cost 28482.42 65160.46 Others 506676.97 260073.01 Total 5351808.44 4133484.37 Including: expensed R&D expenditures 5351808.44 4133484.37 1. R&D projects eligible for capitalization Unit: RMB Increase in the current period Decrease in the current period Beginning Recognized Transfer Item Internal Ending balance as into currentdevelopme Others balance intangible profit or nt expenses assets loss Total Significant capitalized R & D projects Production method Timing of Specific basis for Estimated Item R&D progress of expected capitalization capitalization completion time economic benefits commencement commencement Provision for impairment of development expenses Unit: RMB Increase in the Decrease in the Item Beginning balance Ending balance Impairment test current period current period 2. Important outsourced projects under research Methods in which economic benefits are Judgment criteria and specific basis for Project expected to arise capitalization or expense Other explanations: 2232024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. IX. Changes in consolidation scope 1. Business combination not under common control (1) Business combination not under common control occurred in the current period Unit: RMB Cash Revenue Net profit flows of Determin of the of the Time the Costs of Methods ation acquiree acquiree point of Equity acquiree Name of equity of equity Acquisiti basis of from the from the equity acquisitio from the acquiree acquisitio acquisitio on date the acquisitio acquisitio acquisitio n ratio acquisitio n n acquisitio n date to n date to n n date to n date the end of the end of the end of the period the period the period Other explanations: (2) Combination costs and goodwill Unit: RMB Combination costs -- Cash -- Fair value of non-cash assets -- Fair value of debt issued or assumed -- Fair value of equity securities issued -- Fair value of the contingent consideration -- Fair value of the equity held before the purchase date on the acquisition date -- Others Total combination costs Less: fair value share of net identifiable assets Goodwill/combination cost less than the amount of fair value share of net identifiable assets acquired Determination method of fair value of combination cost: Notes to contingent consideration and its changes Main reasons for the formation of large goodwill: Other explanations: (3) Identifiable assets and liabilities of the acquiree on the acquisition date Unit: RMB Fair value on acquisition date Book value on acquisition date Assets: Monetary funds Accounts receivable 2242024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Inventories Fixed assets Intangible assets Liabilities: Borrowing Accounts payable Deferred tax liabilities Net assets Less: minority equity Net assets acquired Determination method of fair value of identifiable assets and liabilities: Contingent liabilities of the acquiree assumed in the business combination: Other explanations: (4) Gains or losses arising from the equity held before the acquisition date remeasured at fair value Whether there was a transaction that realized business combination step by step through multiple transactions and obtained right of control during the reporting period □ Yes □No (5) Notes to the fair value of the combination consideration or the acquiree's identifiable assets and liabilities that cannot be reasonably determined at the end of the purchase date or the current period of the merger (6) Other explanations 2. Business combination under common control (1) Business combination under common control occurred in the current period Unit: RMB Revenue of Net profit the of the Basis for combined combined Revenue of Net profit Ratio of constituting Determinat party from party from the of the Name of equity business ion basis of the the combined combined the acquired in Combinatio combinatio the beginning beginning party party combined business n date n under combinatio of the of the during the during the party combinatio common n date period to period to comparison comparison n control the the period period combinatio combinatio n date n date Other explanations: (2) Combination costs Unit: RMB 2252024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Combination costs -- Cash -- Book value of non-cash assets -- Book value of debt issued or assumed -- Par value of equity securities issued -- Contingent consideration Notes to contingent consideration and its changes: Other explanations: (3) Book value of the assets and liabilities of the combined party on the combination date Unit: RMB Combination date At the end of previous period Assets: Monetary funds Accounts receivable Inventories Fixed assets Intangible assets Liabilities: Borrowing Accounts payable Net assets Less: minority equity Net assets acquired Contingent liabilities of the combined party assumed in the business combination: Other explanations: 3. Counter purchase Basic information on the transaction basis for the transaction to constitute a reverse purchase whether the assets and liabilities retained by the listed company constitute a business and the basis thereof determination of the combination cost and the amount of equity adjusted when the transaction is treated as an equity transaction and its calculation: 4. Disposal of subsidiaries Whether there were any transactions or events during the period in which control over the subsidiary is lost □ Yes □No Whether there are multiple transactions and step-by-step disposal of the investment in a subsidiary leading the loss of the control right over the subsidiary in the current period □ Yes □No 2262024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. 5. Change of consolidation scope due to other reasons Describe changes in the scope of consolidation due to other reasons (e.g. establishment of new subsidiaries liquidation of subsidiaries etc.) and the related situations: The subsidiary Shengda Shi Investment Co. Ltd. completed its cancellation registration on July 5 2024.The subsidiary Zhimao Real Estate Co. Ltd. completed its cancellation registration on August 9 2024.The subsidiary Shenzhen Zhongtongda Housing Repair Service Co. Ltd. completed its cancellation registration on December 23 2024. 6. Others X. Equity in other entities 1. Equity in the subsidiaries (1) Compositions of the Group Unit: RMB Name of Registered Main Registration Business Shareholding ratio Method of subsidiaries capital premise place nature Direct Indirect acquisition Shenzhen Real estate Huangcheng 30000000.0 Establishmen Shenzhen Shenzhen development 100.00% Real Estate 0 t and operation Co. Ltd.Shenzhen Wuhe Industry Real estate 100000000. Establishmen Investment Shenzhen Shenzhen leasing 100.00% 00 t and operation Development Co. Ltd.Shenzhen Business Software and Facility combination 15453000.0 information Management Shenzhen Shenzhen 35.00% not under 0 technology Community common services Co. Ltd. control Beijing Business Facility Software and combination Management information 5000000.00 Beijing Beijing 17.85% not under Community technology common Technology services control Co. Ltd.SZPRD Xuzhou Real estate Dapeng Real 50000000.0 Establishmen Xuzhou Xuzhou development 100.00% Estate 0 t and operation Development Co. Ltd.Dongguan 20000000.0 Dongguan Dongguan Real estate 100.00% Establishmen 2272024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. ITC 0 City City development t Changsheng and operation Real Estate Development Co. Ltd.SZPRD Yangzhou Real estate 50000000.0 Yangzhou Yangzhou Establishmen Real Estate development 100.00% 0 City City t Development and operation Co. Ltd.Shenzhen International Trade Center 20000000.0 Property Establishmen Shenzhen Shenzhen 100.00% Property 0 management t Management Co. Ltd.Shenzhen ITCmei Life Property Establishmen 5000000.00 Shenzhen Shenzhen 100.00% Service Co. management t Ltd.Shandong Shenzhen International Property Establishmen Trade Center 5000000.00 Jinan Jinan 100.00% management t Property Management Co. Ltd.Chongqing Shenguomao Property Establishmen Real Estate 5000000.00 Chongqing Chongqing 100.00% management t Management Co. Ltd.Chongqing Construction Aobo Establishmen 5000000.00 Chongqing Chongqing and 100.00% Elevator Co. t installation Ltd.Shenzhen Tianque Construction Establishmen Elevator 5000000.00 Shenzhen Shenzhen and 100.00% t Technology installation Co. Ltd.Shenzhen International Trade Center Construction Mechanical Establishmen 1200000.00 Shenzhen Shenzhen and 100.00% and t installation Electrical Equipment Co. Ltd.Shenzhen Catering Establishmen ITC Catering 2000000.00 Shenzhen Shenzhen 100.00% services t Co. Ltd.Shenzhen Property Engineering Establishmen Engineering 3000000.00 Shenzhen Shenzhen supervision 100.00% t and services Construction 2282024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Supervision Co. Ltd.Shenzhen Property Real estate 40000000.0 Establishmen Commercial Shenzhen Shenzhen leasing 100.00% 0 t Operation operation Co. Ltd.Shum Yip Real estate Properties 20000000.0 Establishmen Hong Kong Hong Kong leasing 100.00% Development 0 t operation Limited Huiheng Real estate Establishmen Development 2.001 Hong Kong Hong Kong leasing 100.00% t Co. Ltd. operation Yangzhou Slender West Lake Jingyue 10000000.0 Yangzhou Yangzhou Property Establishmen 51.00% Property 0 City City management t Development Co. Ltd.Shandong Shenzhen Catering Establishmen ITC Hotel 3000000.00 Jinan Jinan 100.00% services t Management Co. Ltd.Shenzhen ShenShan Special Cooperation Zone Shenzhen Property Establishmen 5000000.00 Shenzhen Shenzhen 65.00% International management t Trade Center Property Management Development Co. Ltd.Shenzhen ITC Tongle Property Establishmen Property 2000000.00 Shenzhen Shenzhen 51.00% management t Management Co. Ltd.Shenzhen Business Rongyao Real estate combination 10000000.0 Real Estate Shenzhen Shenzhen development 69.00% not under 0 Development and operation common Co. Ltd. control Shenzhen Business ITC combinations 30000000.0 Property Technology Shenzhen Shenzhen 100.00% under 0 management Park Service common Co. Ltd. control Shenzhen Business ITC Real estate combinations 20000000.0 Chuntian Shenzhen Shenzhen leasing 100.00% under 0 Commercial operation common Management control 2292024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Co. Ltd.Shenzhen Business Penghongyua Real estate combinations n Industrial 8000000.00 Shenzhen Shenzhen leasing 100.00% under Development operation common Co. Ltd. control Shenzhen Business Jinhailian combinations Property Property 3000000.00 Shenzhen Shenzhen 100.00% under management Management common Co. Ltd. control Business Shenzhen combinations Social 35000000.0 Property Shenzhen Shenzhen 100.00% under Welfare Co. 0 management common Ltd.control Shenzhen Business Fuyuanmin combinations 10000000.0 Property Property Shenzhen Shenzhen 100.00% under 0 management Management common Co. Ltd. control Shenzhen Business Meilong Real estate combinations Industrial 5000000.00 Shenzhen Shenzhen leasing 100.00% under Development operation common Co. Ltd. control Business Shenzhen combinations ITC Shenlv 10600000.0 Greening Shenzhen Shenzhen 90.00% under Garden Co. 0 management common Ltd.control Shenzhen Business Jiayuan combinations Property Property 1000000.00 Shenzhen Shenzhen 54.00% under management Management common Co. Ltd. control Shenzhen Business Helinhua Real estate combinations Construction 3000000.00 Shenzhen Shenzhen leasing 90.00% under Management operation common Co. Ltd. control Business Shenzhen Real estate combinations Kangping 1000000.00 Shenzhen Shenzhen leasing 90.00% under Industrial operation common Co. Ltd.control Business Shenzhen Real estate combinations Sports 3300000.00 Shenzhen Shenzhen leasing 100.00% under Service Co.operation common Ltd.control Business Shenzhen Real estate combinations Jiaoshizhijia 1660000.00 Shenzhen Shenzhen leasing 100.00% under Training Co.operation common Ltd.control Shenzhen 4985610.00 Shenzhen Shenzhen Real estate 100.00% Business 2302024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Education leasing combinations Industry Co. operation under Ltd. common control Business Shenzhen Real estate combinations Yufa 1050000.00 Shenzhen Shenzhen leasing 80.95% under Industrial operation common Co. Ltd.control Shenzhen SZPRD Real estate 10000000.0 Establishmen Fuyuantai Shenzhen Shenzhen development 100.00% 0 t Development and operation Co. Ltd.Xiamen Shenzhen ITC Property Establishmen Chancheng 5000000.00 Xiamen Xiamen 51.00% management t Smart Service Co.Ltd.Vietnam Shenzhen International Property Establishmen Trade Center 200000.002 Vietnam Vietnam 100.00% management t Property Management Co. Ltd.Shenzhen SZPRD Real estate Swallow 10000000.0 Establishmen Shenzhen Shenzhen development 100.00% Lake 0 t and operation Development Co. Ltd.Shenzhen Guangming Real estate 50000000.0 Establishmen Wuhe Real Shenzhen Shenzhen development 100.00% 0 t Estate Co. and operation Ltd.Dongguan Real estate Wuhe Real 50000000.0 Dongguan Dongguan Establishmen development 100.00% Estate Co. 0 City City t and operation Ltd.Business Shenzhen combinations Property Property 7250000.00 Shenzhen Shenzhen 100.00% under Management management common Co. Ltd.control Business Shenzhen Construction combinations Shenwu 3500000.00 Shenzhen Shenzhen and 100.00% under Elevator Co.installation common Ltd.control Shenzhen Business Shenfang Property combinations 1000000.00 Shenzhen Shenzhen 100.00% Property management under Cleaning common 2312024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Co. Ltd. control Shenzhen Business Foreign combinations Trade Property 5000000.00 Shenzhen Shenzhen 100.00% under Property management common Management control Co. Ltd.Shenzhen Business Shenfubao combinations 15000000.0 Property Property Shenzhen Shenzhen 100.00% under 0 management Development common Co. Ltd. control Shenzhen Business Fubao Urban combinations Property Resources 5000000.00 Shenzhen Shenzhen 60.00% under management Management common Co. Ltd. control Shenzhen Business Shenfubao Construction combinations 10000000.0 Municipal Shenzhen Shenzhen and 100.00% under 0 Service Co. installation common Ltd. control Shenzhen Business Free Trade combinations Zone Property 2000000.00 Shenzhen Shenzhen 100.00% under Security management common Service Co.control Ltd.Shenzhen Real estate Wuhe Urban 195000000. Establishmen Shenzhen Shenzhen development 100.00% Renewal Co. 00 t and operation Ltd.Yangzhou Real estate Wuhe Real 50000000.0 Yangzhou Yangzhou Establishmen development 67.00% Estate Co. 0 City City t and operation Ltd.Shenzhen Tonglu Wuhe Real estate 10000000.0 Establishmen Investment Shenzhen Shenzhen leasing 100.00% 0 t Development operation Co. Ltd.Shenzhen ITC Space Property Establishmen 2800000.00 Shenzhen Shenzhen 55.00% Service Co. management t Ltd.Note: 1 HKD 2 USD Unit: RMB Notes to the differences between the shareholding ratio and the proportion of voting rights in the subsidiary: In May 2021 the Company's subsidiary Shenzhen Wuhe Industry Investment and Development Co. Ltd. (Wuhe Industry Investment and Development for short) acquired 35% of the equity of Shenzhen Facility Management Community Co. Ltd. (Facility Management Community for short) through equity acquisition and targeted capital increase. At the same time according to the equity acquisition cooperation framework agreement signed by the Wuhe Industry Investment and Development and the original shareholders from the date of completion of the transaction the original shareholders unconditionally granted 16% of the voting right of the equity in the Facility Management Community they held or actually controlled to the Wuhe Industry Investment 2322024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. and Development. The grant of the voting right had no preconditions and the term of the voting right was not stipulated in the contract.The basis for holding half or less than half of the voting rights but still controlling the investees and holding more than half of the voting rights but not controlling the investees: Not applicable Basis of controlling significant structured entities incorporated in the consolidation scope: Not applicable Basis for determining whether the firm is agent or principal: Not applicable Other explanations: (2) Significant non-wholly-owned subsidiaries Unit: RMB Profit or loss Dividends declared to Balance of minority Shareholding ratio by attributable to minority be distributed to Name of subsidiaries interests as at the end minority shareholders shareholders in this minority shareholders of the period period in this period Shenzhen Rongyao Real Estate 31.00% -132005125.54 -139171899.80 Development Co. Ltd.Yangzhou Wuhe Real 33.00%-44874308.66-39763028.56 Estate Co. Ltd.Notes to the differences between the shareholding ratios by minority shareholders in subsidiaries and the corresponding voting ratios: Other explanations: (3) Key financial information on significant non-wholly-owned subsidiaries Unit: RMB Ending balance Beginning balance Name of Curren Non- Curren Non-Non- Total Non- Total subsidi Curren Total t current Curren Total t currentcurrent liabiliti current liabiliti aries t assets assets liabiliti liabiliti t assets assets liabiliti liabilitiassets es assets es es es es es Shenz hen Rongy ao 67251402168653821349373146104161896266321730726289 Real 051377499.26887045511649721048831534251.72578495273491384440 Estate 2.49612.102.122.234.350.55742.298.380.568.94 Develo pment Co.Ltd. 2332024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Yangz hou Wuhe 1429 1429 1311 23891 1550 1291 1294 1278 1278 673373086 Real 17892 85229 42742 8893. 34631 35982 44640 95767 95767 1.49583.61 Estate 0.12 1.61 4.41 14 7.55 3.31 6.92 9.33 9.33 Co.Ltd.Unit: RMB Amount in the current period Amount in the previous period Name of Total Cash flows Total Cash flows subsidiaries Operating comprehen from Operating comprehen fromNet profit Net profit revenue sive operating revenue sive operating income activities income activities Shenzhen Rongyao - - - - - - Real Estate 42582298 42582298 23141850 37833453. 37833453. 53529479 Developme 5.60 5.60 3.15 79 79 6.10 nt Co. Ltd.Yangzhou ------ Wuhe Real 13598275135982752943364931719663.31719663.43688784. Estate Co. 3.533.534.28878715 Ltd.Other explanations: (4) Significant restrictions on the use of assets of the Group by subsidiaries and liquidation of debts of the Group Not applicable (5) Financial support or other supports provided to structured entities included into the scope of consolidated financial statements Not applicable Other explanations: 2. Transactions leading to changes in the share of owners' equity in subsidiaries and still controlling the subsidiaries (1) Explanation of changes in the share of owners' equity in subsidiary Not applicable (2) Impact of the transaction on minority interests and owners' equity attributable to the parent company Unit: RMB Purchase cost/disposal consideration -- Cash -- Fair value of non-cash assets 2342024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Total purchase cost/disposal consideration Less: share of net assets of subsidiary calculated according to the ratio of equity acquired/disposed Difference Including: adjustment of capital reserve Adjustment of surplus reserves Adjustment of undistributed profits Other explanations: 3. Equity in the joint venture arrangements or associates (1) Significant joint ventures or associates Shareholding ratio Accounting Name of joint treatment for Registration ventures or Main premise Business nature investment in place associates Direct Indirect joint ventures or associates Shenzhen Property Jifa Warehousing Accounting by Shenzhen Shenzhen 25.00% 25.00% Warehousing services equity method Co. Ltd.Shenzhen Tian'an International Property Accounting by Building Shenzhen Shenzhen 50.00% management equity method Property Management Co. Ltd.China Construction Engineering Corporation Commercial Accounting by Shenzhen Shenzhen 10.00% Group Smart services equity method Parking Technology Co. Ltd.Notes to the difference between the shareholding ratio and the proportion of voting rights in the joint ventures or associates: Basis for holding less than 20% voting right but with significant influence or holding 20% or more voting right but without significant influence: (2) Key financial information on significant joint ventures Unit: RMB Ending balance/amount incurred in the current Beginning balance/amount incurred in previous period period Tian'an Property Tian'an Property Jifa Warehousing Jifa Warehousing Management Management Current assets 611947126.30 57343010.43 13949127.78 59553501.09 Including: cash and 214143035.38 36335565.40 11574044.52 38464410.56 2352024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. cash equivalents Non-current assets 284847.56 44161.33 85381409.08 42101.51 Total assets 612231973.86 57387171.76 99330536.86 59595602.60 Current liabilities 147518773.45 29195202.15 3198899.85 28927454.58 Non-current liabilities 16713827.17 16566273.37 Total liabilities 147518773.45 45909029.32 3198899.85 45493727.95 Minority interests Equity attributable to shareholders of the 464713200.41 11478142.44 96131637.01 14101874.65 parent company Net asset share calculated based on 232356600.21 5739071.22 48065818.51 7050937.33 shareholding ratio Adjusted matters -- Goodwill -- unrealized profit of internal transactions -- Others Book value of equity investment in joint 232356600.21 5739071.22 48065818.51 7050937.33 ventures Fair value of equity investments in joint ventures with publicly quoted prices Operating revenue 4795838.23 11355950.99 13401998.52 15353082.93 Financial expenses -50468.13 -430563.58 -17937.34 -473753.01 Income tax expenses 122861946.86 2225102.81 9505.10 Net profit 368581564.93 -2623732.21 6670466.43 2780.71 Net profit from discontinued operations Other comprehensive income Total comprehensive 368581564.93-2623732.216670466.432780.71 income Dividends received from joint ventures during the year Other explanations: (3) Key financial information on significant associates Unit: RMB Ending balance/amount incurred in the Beginning balance/amount incurred in current period previous period China Construction Science And China Construction Science And 2362024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Industry Corporation LTD Industry Corporation LTD Current assets 292106487.07 256074109.31 Non-current assets 88143320.13 11617792.09 Total assets 380249807.20 267691901.40 Current liabilities 173994765.30 95957288.78 Non-current liabilities 20359252.41 486565.88 Total liabilities 194354017.71 96443854.66 Minority interests Equity attributable to shareholders of the 185895789.49171248046.74 parent company Net asset share calculated based on 18589578.9517124804.67 shareholding ratio Adjusted matters -- Goodwill -- unrealized profit of internal transactions -- Others Book value of equity investments in 30092133.3228940994.71 associates Fair value of equity investments in associates with publicly quoted prices Operating revenue 260448745.66 200994767.06 Net profit 12445936.25 9912150.03 Net profit from discontinued operations Other comprehensive income Total comprehensive income 12445936.25 9912150.03 Dividends received from associates 93455.0263120.00 during the year Other explanations: (4) Summarized financial insignificant of unimportant joint ventures and associates Unit: RMB Ending balance/amount incurred in the Beginning balance/amount incurred in current period previous period Joint ventures: Total amounts of the following items calculated at shareholding ratio Associates: Total amounts of the following items calculated at shareholding ratio Other explanations: 2372024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. (5) Description of significant restrictions on the ability of joint ventures or associates to transfer funds to the Company (6) Excess losses incurred by joint ventures or associates Unit: RMB Accumulated unrecognized Losses not recognized in the Accumulated unrecognized Name of joint ventures or losses accumulated in current period (or net profit losses at the end of the current associates previous periods shared in the current period) period Other explanations: (7) Unrecognized commitments related to investments in joint ventures (8) Contingent liabilities related to joint ventures or investments in associates 4. Important joint operation Joint operation Shareholding ratio/share enjoyed (%) Main premise Registration place Business nature name Direct Indirect Notes to the difference between the shareholding ratio and the proportion of voting rights in joint operations: If the joint operations is a separate entity the basis for classifying it as joint operations: Other explanations: 5. Equity in the structured entities not included in the scope of consolidated financial statements Related notes to structuring subjects not included in the scope of consolidated financial statements in the current period: Not applicable 6. Others Not applicable XI. Government grants 1. Government grants not recognized by amounts receivable at the end of the reporting period □Applicable □Not applicable Reasons for not receiving the expected amounts of government grants at the expected time □ Applicable □Not applicable 2. Liability items involving government grants □Applicable □Not applicable 2382024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. 3. Government grants included in the current profit or loss □Applicable □ Not applicable Unit: RMB Accounting item Amount in the current period Amount in the previous period Other income 3059786.92 7690477.21 Other explanations: XII. Risks associated with financial instruments 1. Various risks arising from financial instruments The Company's goal in risk management is to achieve an appropriate balance between risk and return minimize the negative impact of risk on the Company's operating performance and maximize the interests of shareholders and other equity investors.Based on this risk management objective the basic strategy of the Company's risk management is to identify and analyze the various risks faced by the Company establish an appropriate risk tolerance bottom line and conduct risk management and timely and reliably supervise various risks to control risks within a limited range.The Company is exposed to various risks related to financial instruments in its daily activities mainly including credit risk liquidity risk and market risk. The Management has reviewed and approved policies to manage these risks which are summarized below: Credit risk Credit risk refers to the risk that the Company will incur financial losses due to the failure of the counterparty to perform its contractual obligations.The Company manages the credit risk by portfolio. Credit risk mainly arises from bank deposits accounts receivable other receivables long-term receivables etc.The Company's bank deposits are mainly deposited in state-owned banks and other large and medium-sized listed banks and the Company expects that there is no significant credit risk in the bank deposits.For accounts receivable other receivables and long-term receivables the Company has set up relevant policies to control the exposure of credit risk. The Company evaluates the credit qualifications of customers and sets the corresponding credit period based on the financial status credit history and other factors such as the current market conditions of customers. The COOEC would monitor the customers' credit records periodically; as for the customers with bad credit records the COOEC would adopt the methods including requesting a payment in writing or shortening or canceling credit term so as to keep the COOEC's overall credit risks within controllable scope.The debtors of the Company's accounts receivable are customers distributed in different industries and regions. The Company continuously conducts credit evaluations on the financial status of accounts receivable and purchases credit guarantee insurance when appropriate. 2392024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. The maximum credit risk exposure of the Company shall be the carrying amount of each financial asset in the balance sheet. The Company has not provided any other guarantee that may subject the Company to credit risk.In the Company's accounts receivable the accounts receivable of the top five companies in arrears accounted for 49.49% of the Company's total accounts receivable (2023: 59.45%); In the Company's other receivables the other receivables of the top five companies in arrears accounted for 86.94% (2023: 87.25%) of the total other receivables of the Company.Liquidity risk Liquidity risk refers to the risk that the Company will encounter a shortage of funds when fulfilling its obligations to settle in cash or other financial assets.When managing liquidity risk the Company maintains cash and cash equivalents that the Management believes are sufficient and monitors them to meet the Company's operational needs and reduce the impact of cash flows fluctuations. The Management of the Company monitors the use of bank borrowings and ensures compliance with the loan agreement. At the same time the Company has obtained commitments from major financial institutions to provide sufficient standby funds to meet short-term and long-term funding needs.The Company finances its working capital through funds generated from its operations and bank and other borrowings.At the end of the period the financial liabilities and off-balance guarantee items held by the Company were analyzed as follows according to the maturity of the undiscounted remaining contractual cash flows (unit: RMB10000): Ending balance Item Within 1 year Within 1 to 3 years More than 3years Total Financial liabilities: Bank borrowings 18241.68 459942.67 34740.89 512925.24 Accounts payable 104309.23 104309.23 Other payables 123135.14 123135.14 Non-current liabilities maturing within one year 50868.12 50868.12 Other current liabilities (excluding deferred 2318.63 2318.63 income) Lease liabilities 1373.57 941.53 2315.10 Long-term payables 1822.49 44368.28 46190.77 Total financial liabilities and contingent liabilities 300695.29 505684.52 35682.42 842062.23 At the end of the previous year the financial liabilities and off-balance guarantee items held by the Company were analyzed according to the maturity of the undiscounted remaining contractual cash flows as follows (unit: RMB10000): Balance as at the end of the previous year Item Within 1 year Within 1 to 3 More than 3years years Total Financial liabilities: 2402024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Balance as at the end of the previous year Item Within 1 year Within 1 to 3 More than 3years years Total Bank borrowings 37912.20 70965.99 79731.94 188610.14 Accounts payable 66286.91 66286.91 Other payables 120510.06 120510.06 Non-current liabilities maturing within one year 311118.77 311118.77 Other current liabilities (excluding deferred income) 6837.37 6837.37 Lease liabilities 773.04 817.42 1590.46 Long-term payables 1829.31 4127.74 42103.03 48060.08 Total financial liabilities and contingent liabilities 544494.61 75866.78 122652.39 743013.78 The amount of financial liabilities disclosed in the above table was the undiscounted contractual cash flows so it might be different from the book value in the balance sheet.Market risk Market risk associated with financial instruments refers to the risk that fair value or future cash flows of financial instruments fluctuate due to variations in market prices and it includes exchange rate risk interest rate risk and other price risks.Interest rate risk Interest rate risk refers to the risk of fluctuations in the fair value or future cash flows of financial instruments arising from changes in market interest rates. Interest rate risk can arise from recognized interest-bearing financial instrument and unrecognized financial instrument (e. g. certain loan commitment).The Company's interest rate risk mainly arises from bank borrowings. Financial liabilities with floating interest rates expose the Company to cash flows interest rate risk and financial liabilities with fixed interest rate expose the Company to fair value interest rate risk. The Company determines the relative ratio of fixed interest rate and floating rate contracts based on the prevailing market conditions and maintains an appropriate mix of fixed and floating rate instruments through regular review and monitoring.The Company closely monitors the impact of fluctuation in interest rate changes on the Company's interest rate risk. The Company does not currently have an interest rate hedging policy. However the Management is responsible for monitoring interest rate risk and will consider hedging significant interest rate risk when required. Rising interest rates will increase the cost of new interest- bearing debt and the interest expenses of the Company's outstanding interest-bearing debt at floating rates and have a significant adverse impact on the Company's financial performance. The Management will make timely adjustments based on the latest market conditions which may be interest rate swaps to reduce interest rate risk.The interest-bearing financial instruments held by the Company are as follows (unit: RMB10000): Item Amount in this period Amount in previous period Fixed interest rate financial instruments Financial liabilities 2412024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Item Amount in this period Amount in previous period Including: short-term borrowings 19016.55 23091.50 Long-term borrowings maturing within one year 49825.99 307599.38 Long-term borrowings 475531.46 139988.93 Total 544374.00 470679.81 For financial instruments held on the balance sheet date that expose the Company to fair value interest rate risk the impact of net profit and shareholders' equity in the above sensitivity analysis is the impact after the above financial instruments are remeasured at the new interest rate assuming that the interest rate changes on the balance sheet date. For floating rate non-derivatives held on the balance sheet date that expose the Company to cash flows interest rate risk the impact of net profit and shareholders' equity in the above sensitivity analysis is the impact of the above interest rate changes on interest expenses or income estimated on an annual basis. The previous year's analysis was based on the same assumptions and methodology.Exchange rate risk Exchange rate risk refers to the risk that the fair value or future cash flows of the financial instrument will fluctuate due to changes in foreign exchange rates. Exchange rate risk can arise from financial instruments denominated in foreign currencies other than recording currency.The Company's main business is located in China and its main business is settled in RMB. However there are still foreign exchange risks for the Company's recognized foreign currency assets and liabilities and future foreign currency transactions (the valuation currencies of foreign currency assets and liabilities and foreign currency transactions are mainly HKD VND and USD).At the end of the period the foreign currency financial assets and foreign currency financial liabilities held by the Company are translated into RMB as follows (unit: RMB'0000): Foreign currency liabilities Foreign currency assets Item Balance as at the Balance as at the Ending balance end of the Ending balance end of the previous year previous year HKD 86.26 84.99 VND 283.75 212.04 1390.38 1150.76 USD 387.01 37.39 6640.79 5737.29 Total 670.76 249.43 8117.43 6973.04 The Company closely monitors the impact of fluctuation in exchange rate on the Company's exchange rate risk. The Company is not currently taking any measures to avoid exchange rate risk. However the Management is responsible for monitoring exchange rate risk and will consider hedging significant exchange rate risk when required. 2. Hedging (1) The Company conducts hedging business for risk management □Applicable □Not applicable 2422024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. (2) The Company conducts eligible hedging business and applies hedge accounting Unit: RMB Cumulative fair value Hedge effectiveness Impact of hedge Book value related to hedge adjustment and source of accounting on the Item the hedged item and included in the book ineffective part of Company's financial the hedging instrument value of the hedged hedge statements item recognized Type of hedging risk Type of hedging Other explanations (3) The Company conducts hedging business for risk management and is expected to achieve risk management objectives but does not apply hedging accounting □Applicable □Not applicable 3. Financial assets (1) Classification of transfer methods □Applicable □Not applicable (2) Financial assets derecognition due to transfer □Applicable □Not applicable (3) Continued involvement in the transfer of financial assets □Applicable □Not applicable Other explanations XIII. Disclosure of fair value 1. Ending fair value of assets and liabilities measured at fair value Unit: RMB Fair value as at the end of the period Item Measured at the fair Measured at the fair Measured at the fair Total value of the 1st level value of the 2nd level value of the 3rd level I. Continuous measurement of fair -- -- -- -- value (III) Investments in other equity 586231.82 586231.82 instruments II. Measurement at fair value not on a going -- -- -- -- concern 2432024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. 2. Basis for recognition of the market price of items measured at fair value of Level 1 on a going and non- going concern 3. Qualitative and quantitative valuation techniques and important parameters of sustainable and non- sustainable items measured on the basis of fair value of level 2 4. Continuous and non-continuous Level 3 fair value measurement items valuation techniques used and the qualitative and quantitative information on important parameters 5. The information on adjustment between the beginning and the end of the book value and analysis on the sensitivity of the unobservable parameters of sustainable and non-sustainable items measured on the basis of fair value of tier three 6. Continuous measurement items by fair value reason for conversion among all levels in the current period and policies for determining the time of conversion 7. Change of valuation techniques in the current period and reason for change 8. Condition of fair value of financial assets and financial liabilities not measured at fair value 9. Others XIV. Related parties and related party transactions 1. Parent company Parent company's Parent company's shareholding voting rights Name Registration place Business nature Registered capital percentage in the percentage in the Company Company Shenzhen Limited liability RMB 33.186 Investment Shenzhen company (wholly 57.25% 57.25% billion Holdings Co. Ltd. state-owned) Parent company The ultimate controller of the Company is the State-owned Assets Supervision and Administration Commission of Shenzhen Municipal People's Government.Other explanations: 2. Subsidiaries of the Company See Note X.1 for details of the subsidiary of the Company. 3. Joint ventures and associates See Note X.3 for details of important joint ventures or associates of the Company.Joint ventures and associates involved in the related party transactions with the Company in the Current Period or leading to balance due to the related party transaction they had with the Company in previous periods: Name of joint venture or associates Relationship with the Company 2442024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Other explanations: 4. Other related parties Other related parties Relationship between other related parties with the COOEC The parent company of Xinhai Rongyao the minority Shenzhen Xinhai Holdings shareholders of the subsidiary Rongyao Real Estate Shenzhen Xinhai Rongyao Real Estate Development Co. Ltd. Minority shareholders of the subsidiary Rongyao Real Estate Yangzhou Tourism Development Property Co. Ltd. Subsidiary Yangzhou Wuhe's minority shareholders Shenzhen Wufang Ceramic Industry Co. Ltd. Associates of the Company Shenzhen Property Jifa Warehousing Co. Ltd. Joint ventures of the Company Shenzhen Tian'an International Building Property Management Joint ventures of the Company Co. Ltd.Chengdu Zunxi Land Co. Ltd. Subsidiary of a subsidiary (under the parent company) Dongguan Shenzhen Investment Holdings Investment Subsidiary of a subsidiary (under the parent company) Development Co. Ltd.Guangdong Jianbang Group (Huiyang) Industrial Co. Ltd. Subsidiary of a subsidiary (under the parent company) Guoren P&C Insurance Co. Ltd. Subsidiary of the parent company Hebei Shenbao Investment Development Co. Ltd. Subsidiary of a subsidiary (under the parent company) Kunpeng Industrial Source Innovation Center (Shenzhen) Co.Wholly-owned sub-subsidiary of the parent company Ltd.Shantou Huafeng Real Estate Development Co. Ltd. Subsidiary of a subsidiary (under the parent company) Shantou Hualin Real Estate Development Co. Ltd. Subsidiary of a subsidiary (under the parent company) Shenzhen Chuangke Development Co. Ltd. Subsidiary of a subsidiary (under the parent company) Shenzhen Credit Guarantee Group Co. Ltd. Subsidiary of the parent company Shenzhen High-tech Zone Development and Construction Co.Wholly-owned sub-subsidiary of the parent company Ltd.Shenzhen Petrel Hotel Co. Ltd. Subsidiary of a subsidiary (under the parent company) Shenzhen Convention and Exhibition Center Management Co.Wholly-owned subsidiary of the parent company Ltd.Shenzhen Special Economic Zone Real Estate & Properties Subsidiary of the parent company (Group) Co. Ltd.Shenzhen Talent Recruitment International Co. Ltd. Wholly-owned sub-subsidiary of the parent company Shenzhen Light Industrial Products Import and Export Co.Wholly-owned sub-subsidiary of the parent company Ltd.Research Institute of Tsinghua University in Shenzhen Subsidiary of the parent company Shenzhen Total Logistics Service Co. Ltd. Subsidiary of a subsidiary (under the parent company) Shenzhen People's Congress Cadre Training Center Co. Ltd. Wholly-owned subsidiary of the parent company Shenzhen Shenzhen-Hong Kong Science and Technology Subsidiary of a subsidiary (under the parent company) Innovation Park Operation and Development Co. Ltd.Shenzhen Shenzhen-Hong Kong Science and Technology Subsidiary of the parent company Innovation Cooperation Zone Development Co. Ltd.Shenzhen Shenshan Special Cooperation Zone Shenzhen Wholly-owned subsidiary of the parent company Investment Holdings Investment Development Co. Ltd.Shenzhen Baoshi Real Estate Co. Ltd. Subsidiary of a subsidiary (under the parent company) Shenzhen Free Trade Zone Life Service Co. Ltd. Subsidiary of a subsidiary (under the parent company) Shenzhen Binjiang Industrial Co. Ltd. Subsidiary of a subsidiary (under the parent company) Shenzhen Urban Construction Industrial Park Development Subsidiary of a subsidiary (under the parent company) Co. Ltd.Shenzhen Chenglong Real Estate Development Co. Ltd. Subsidiary of a subsidiary (under the parent company) Shenzhen Urban Construction and Development (Group) Co.Subsidiary of the parent company Ltd.Shenzhen Grand Industrial Zone (Shenzhen Export Processing Wholly-owned sub-subsidiary of the parent company Zone) Development Management Group Co. Ltd.Shenzhen Legal Training Center Co. Ltd. Wholly-owned sub-subsidiary of the parent company Shenzhen Fubao Park Operation Co. Ltd. Wholly-owned sub-subsidiary of the parent company 2452024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Shenzhen High-tech Zone Investment and Development Group Subsidiary of the parent company Co. Ltd.Shenzhen Guohui Industrial Co. Ltd. Subsidiary of a subsidiary (under the parent company) Shenzhen Environmental Technology Group Co. Ltd. Subsidiary of the parent company Shenzhen Environmental Engineering Science and Technology Subsidiary of a subsidiary (under the parent company) Center Co. Ltd.Shenzhen General Institute of Architectural Design and Wholly-owned subsidiary of the parent company Research Co. Ltd.Shenzhen Jiaotongchang Station Construction and Wholly-owned sub-subsidiary of the parent company Development Co. Ltd.Shenzhen Southern Certification Co. Ltd. Subsidiary of a subsidiary (under the parent company) Shenzhen Shenda Credit Enhancement Financing Guarantee Subsidiary of a subsidiary (under the parent company) Co. Ltd.Shenzhen Shenfang Chuanqi Real Estate Development Co.Subsidiary of a subsidiary (under the parent company) Ltd.Shenzhen Properties Group Longgang Development Co. Ltd. Subsidiary of a subsidiary (under the parent company) Shenzhen Shenfubao (Group) Tianjin Industrial Development Wholly-owned sub-subsidiary of the parent company Co. Ltd.Shenzhen Shenfubao (Group) Tianjin Investment and Wholly-owned sub-subsidiary of the parent company Development Co. Ltd.Shenzhen Shenfubao (Group) Co. Ltd. Wholly-owned subsidiary of the parent company Shenzhen Shenfubao East Investment and Development Co.Wholly-owned sub-subsidiary of the parent company Ltd.Shenzhen Shentou Property Development Co. Ltd. Wholly-owned subsidiary of the parent company Shenzhen Shenyue United Investment Co. Ltd. Wholly-owned sub-subsidiary of the parent company Shenzhen Water Planning&Design Institute Co. Ltd. Subsidiary of the parent company Shenzhen-Shantou Special Cooperation Branch of Shenzhen Wholly-owned sub-subsidiary of the parent company Water Planning&Design Institute Co. Ltd.Shenzhen Tefa Port Service Co. Ltd. Subsidiary of a subsidiary (under the parent company) Shenzhen Special Zone Literature Magazine Co. Ltd. Wholly-owned sub-subsidiary of the parent company Shenzhen Sports Industry Group Co. Ltd. Wholly-owned subsidiary of the parent company Shenzhen Sports Fashion Culture and Sports Development Co.Wholly-owned sub-subsidiary of the parent company Ltd.Shenzhen Sports Center Operation Management Co. Ltd. Wholly-owned subsidiary of the parent company Shenzhen Tianjun Biotechnology Development Co. Ltd. Subsidiary of a subsidiary (under the parent company) Shenzhen Investment Holdings Development Co. Ltd. Subsidiary of a subsidiary (under the parent company) Shenzhen Investment Building Hotel Co. Ltd. Wholly-owned sub-subsidiary of the parent company Shenzhen Bay Area International Hotel Co. Ltd. Wholly-owned sub-subsidiary of the parent company Shenzhen Wancheng Logistics Co. Ltd. Subsidiary of a subsidiary (under the parent company) Shenzhen Wangyu Center Operation Management Co. Ltd. Wholly-owned sub-subsidiary of the parent company Shenzhen Cultural Enterprise Development Co. Ltd. Wholly-owned sub-subsidiary of the parent company Renaissance Shenzhen Bay Hotel Branch of Shenzhen Wholly-owned sub-subsidiary of the parent company Continental Hotel Management Co. Ltd.Courtyard by Marriott Shenzhen Bay Branch of Shenzhen Wholly-owned sub-subsidiary of the parent company Continental Hotel Management Co. Ltd.Shenzhen Xingye Transportation Co. Ltd. Subsidiary of a subsidiary (under the parent company) Shenzhen Etong Digital Innovation and Development Co. Ltd. Subsidiary of a subsidiary (under the parent company) Shenzhen Tianjun Industrial Co. Ltd. Subsidiary of a subsidiary (under the parent company) Shenzhen Tianjun Investment Development Co. Ltd. Wholly-owned sub-subsidiary of the parent company Shenzhen Bay (Baoding) Innovation Development Co. Ltd. Wholly-owned sub-subsidiary of the parent company Shenzhen Bay Technology Development Co. Ltd. Wholly-owned subsidiary of the parent company Shenzhen Bay Area Urban Construction and Development Co.Wholly-owned subsidiary of the parent company Ltd.Shenzhen Xiangmihu International Exchange Center Wholly-owned subsidiary of the parent company Development Co. Ltd.Shenzhen Xingye Xingfa Garment Co. Ltd. Wholly-owned sub-subsidiary of the parent company Shenzhen Silver Lake Convention Center (Hotel) Co. Ltd. Wholly-owned sub-subsidiary of the parent company 2462024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Shenzhen Infinova Limited Subsidiary of the parent company Shenzhen Infinova Information Technology Co. Ltd. Wholly-owned sub-subsidiary of the parent company Shenzhen Infinova Smart Park Technology Co. Ltd. Wholly-owned sub-subsidiary of the parent company Hong Kong HOI PAN Development Co. Ltd. Wholly-owned sub-subsidiary of the parent company China Shenzhen Foreign Trade (Group) Company Limited Wholly-owned subsidiary of the parent company Other explanations: 5. Related party transactions (1) Related party transactions on purchase and sales of goods rendering and receipt of services Purchase of goods/receipt of services Unit: RMB Whether the Related party Amount in the Approved Amount in the Related party transaction quota transactions current period transaction quota previous period is exceeded Guoren P&C Insurance Insurance 2647109.232907471.58 Co. Ltd. premiums Shenzhen Credit Guarantee Group Co. Guarantee fee 56133.53 Ltd.Shenzhen Special Economic Zone Real Management 4494794.364502375.31 Estate & Properties service fee (Group) Co. Ltd.Shenzhen Light Industrial Products Import and Catering services 23692.08 50477.89 Export Co. Ltd.Shenzhen People's Congress Cadre Training Training expenses 1780.00 Center Co. Ltd.Shenzhen Legal Training Training expenses 100223.49 185019.48 Center Co. Ltd.Shenzhen Guohui Catering services 45600.00 Industrial Co. Ltd.Shenzhen Environmental Environmental Technology Group Co. protection service 385580.19 Ltd. fee Shenzhen Environmental Environmental Engineering Science and protection service 111005.66 Technology Center Co.fee Ltd.Shenzhen General Project Institute of Architectural architectural 4207808.07 10712800.00 No 8940492.75 Design and Research Co.design services Ltd.Shenzhen Southern Certification fee 24528.30 Certification Co. Ltd.Shenzhen Shenda Credit Enhancement Financing Guarantee fee 274886.79 Guarantee Co. Ltd.Shenzhen Shenfubao Catering services 541145.00 200535.00 (Group) Co. Ltd.Shenzhen Water Consulting 13331.00 2472024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Planning&Design service fees Institute Co. Ltd.Shenzhen Tefa Port Property service 276742.05294540.95 Service Co. Ltd. fee Shenzhen Tianjun Green plant Biotechnology maintenance 75068.65 107161.34 Development Co. Ltd. service Shenzhen Cultural Enterprise Development Activity fee 74964.34 175633.75 Co. Ltd.Shenzhen Etong Digital Innovation and Catering services 31794.69 8982.00 Development Co. Ltd.Shenzhen Tianjun Compensation for 70296.2356613.20 Industrial Co. Ltd. relocation Shenzhen Tianjun Green plant Investment Development maintenance 52638.20 Co. Ltd. service Shenzhen Bay Management Technology Development 62382807.01 72761800.00 62480975.10 service fee Co. Ltd.Shenzhen Infinova Intelligent project Information Technology 384103.84 funds Co. Ltd.China Shenzhen Foreign Management Trade (Group) Company 101850.10 305550.31 service fee Limited Sales of goods/ rendering of services Unit: RMB Related party Amount in the Amount in the Related party transactions current period previous period Chengdu Zunxi Land Co. Ltd. Property service fee 3480160.55 1152459.02 Dongguan Shenzhen Investment Holdings Investment Property service fee 3098470.59 1784025.19 Development Co. Ltd.Guangdong Jianbang Group (Huiyang) Industrial Co.Property service fee 295724.00 256331.65 Ltd.Guoren P&C Insurance Co. Ltd. Property service fee 325538.86 347629.57 Hebei Shenbao Investment Development Co. Ltd. Project funds 44233142.45 26970736.12 Hebei Shenbao Investment Development Co. Ltd. Property service fee 11892865.89 13195908.87 Kunpeng Industrial Source Innovation Center (Shenzhen) Property service fee 1339304.96 1381929.74 Co. Ltd.Shantou Huafeng Real Estate Development Co. Ltd. Property service fee 2249598.90 2456814.89 Shantou Hualin Real Estate Development Co. Ltd. Property service fee 35320.76 Subsidiaries of Shenzhen Investment Holdings Catering services 88079.06 197755.66 Shenzhen Shenyue United Investment Co. Ltd. Property service fee 3656843.68 2900927.45 Shenzhen Chuangke Development Co. Ltd. Property service fee 5317675.30 1516908.38 Shenzhen Credit Guarantee Group Co. Ltd. Property service fee 4217529.68 4173239.39 Shenzhen High-tech Zone Development and Construction Property service fee 2521098.97 2391764.60 Co. Ltd.Shenzhen Convention and Exhibition Center Property service fee 12406466.64 9836455.76 Management Co. Ltd.Shenzhen Special Economic Zone Real Estate & Property service fee 3717334.17 5809905.47 Properties (Group) Co. Ltd.Shenzhen Talent Recruitment International Co. Ltd. Property service fee 443957.91 444280.42 Research Institute of Tsinghua University in Shenzhen Property service fee 2217409.49 1376718.19 2482024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Shenzhen Total Logistics Service Co. Ltd. Property service fee 2936775.96 2931862.63 Shenzhen Shenzhen-Hong Kong Science and Technology Property service fee 13318956.64 3153538.10 Innovation Park Operation and Development Co. Ltd.Shenzhen Shenzhen-Hong Kong Science and Technology Property service fee 2710293.10 1588242.65 Innovation Cooperation Zone Development Co. Ltd.Shenzhen Shenshan Special Cooperation Zone Shenzhen Property service fee 2099868.10 508184.64 Investment Holdings Investment Development Co. Ltd.Shenzhen Baoshi Real Estate Co. Ltd. Property service fee 3612660.76 Shenzhen Urban Construction Industrial Park Property service fee 391346.42 Development Co. Ltd.Shenzhen Chenglong Real Estate Development Co. Ltd. Property service fee 1734921.21 395685.75 Shenzhen Urban Construction and Development (Group) Property service fee 273886.79 136971.70 Co. Ltd.Shenzhen Grand Industrial Zone (Shenzhen Export Processing Zone) Development Management Group Co. Project funds -206798.79 263350.35 Ltd.Shenzhen Grand Industrial Zone (Shenzhen Export Processing Zone) Development Management Group Co. Property service fee 664132.17 76628.67 Ltd.Shenzhen Fubao Park Operation Co. Ltd. Project funds 184939.45 209505.25 Shenzhen Fubao Park Operation Co. Ltd. Property service fee 18301.58 140690.29 Shenzhen High-tech Zone Investment and Development Property service fee 125538.20 47172.26 Group Co. Ltd.Shenzhen Environmental Technology Group Co. Ltd. Supervision service fee 141509.43 Shenzhen Environmental Technology Group Co. Ltd. Property service fee 5583897.63 5857237.41 Shenzhen Environmental Technology Group Co. Ltd. Project funds 90016.79 Shenzhen Southern Certification Co. Ltd. Property service fee 74269.81 74213.21 Shenzhen Shenfang Chuanqi Real Estate Development Property service fee 266161.65 168113.22 Co. Ltd.Shenzhen Properties Group Longgang Development Co.Property service fee 382009.37 Ltd.Shenzhen Shenfubao (Group) Tianjin Industrial Project funds 46550.75 Development Co. Ltd.Shenzhen Shenfubao (Group) Tianjin Industrial Property service fee 818633.95 1703980.95 Development Co. Ltd.Shenzhen Shenfubao (Group) Tianjin Investment and Property service fee 7403142.51 7628802.17 Development Co. Ltd.Shenzhen Shenfubao (Group) Co. Ltd. Project funds 1328615.05 Shenzhen Shenfubao (Group) Co. Ltd. Property service fee 4458923.38 4558105.71 Shenzhen Shenfubao East Investment and Development Property service fee 605151.13 483048.37 Co. Ltd.Shenzhen Shentou Property Development Co. Ltd. Supervision service fee 11320.75 Shenzhen Shentou Property Development Co. Ltd. Property service fee 52981.13 Shenzhen-Shantou Special Cooperation Branch of Property service fee 21247.49 Shenzhen Water Planning&Design Institute Co. Ltd.Shenzhen Special Zone Literature Magazine Co. Ltd. Property service fee 51384.96 51384.96 Shenzhen Sports Industry Group Co. Ltd. Project funds 3696271.96 Shenzhen Sports Industry Group Co. Ltd. Property service fee 3247533.97 Shenzhen Sports Center Operation Management Co. Ltd. Property service fee 5279580.87 4806978.01 Shenzhen Investment Holdings Development Co. Ltd. Property service fee 110059.63 Shenzhen Investment Building Hotel Co. Ltd. Supervision service fee 70754.72 Shenzhen Investment Holdings Co. Ltd. Project funds 3667431.09 186843.22 Shenzhen Investment Holdings Co. Ltd. Property service fee 7242745.72 8643987.73 Shenzhen Bay Area International Hotel Co. Ltd. Property service fee 5432881.86 Shenzhen Wancheng Logistics Co. Ltd. Project funds 451416.98 Shenzhen Cultural Enterprise Development Co. Ltd. Property service fee 372727.92 227088.46 Renaissance Shenzhen Bay Hotel Branch of Shenzhen Property service fee 283018.87 338650.32 2492024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Continental Hotel Management Co. Ltd.Courtyard by Marriott Shenzhen Bay Branch of Property service fee 188679.28 220010.13 Shenzhen Continental Hotel Management Co. Ltd.Shenzhen Xingye Transportation Co. Ltd. Property service fee 27522.94 11009.18 Shenzhen Bay (Baoding) Innovation Development Co.Property service fee 658180.89 579370.16 Ltd.Shenzhen Bay Technology Development Co. Ltd. Property service fee 77800192.88 78923867.12 Shenzhen Bay Area Urban Construction and Property service fee 1996166.98 2525782.31 Development Co. Ltd.Shenzhen Xiangmihu International Exchange Center Project funds 537490.97 Development Co. Ltd.Shenzhen Xiangmihu International Exchange Center Property service fee 2408563.82 3458208.00 Development Co. Ltd.Shenzhen Xingye Xingfa Garment Co. Ltd. Property service fee 2832334.90 Shenzhen Silver Lake Convention Center (Hotel) Co.Project funds 337614.68 Ltd.Shenzhen Infinova Limited Property service fee 88556.50 463319.77 Shenzhen Infinova Smart Park Technology Co. Ltd. Consulting service fees 101581.14 1859676.00 China Shenzhen Foreign Trade (Group) Company Supervision service fee 424528.30 Limited China Shenzhen Foreign Trade (Group) Company Property service fee 3053234.14 2457982.89 Limited Purchase or sale of goods and rendering or receipt of labor services In 2024 the Company engaged in catering service transactions with Shenzhen Investment Holdings and several of its subsidiaries.Due to the involvement of multiple entities and relatively small transaction amounts with individual related parties the transaction amounts did not reach the threshold for separate disclosure. Therefore the item was presented in a consolidated form under "Shenzhen Investment Holdings and its subsidiaries". (2) Management on commission/contract and commissioned management/contracting-out Information on the trusteeship management and contracting by the COOEC: Unit: RMB Trust Name of Termination Pricing basis of income/contract Name of Type of Start date of entrusting date of custody ing income entrusted entrusted/contra entrustment/con party/contractin entrustment/con income/contract recognized in party/contractor cted assets tracting g-out party tracting ing income the current period Shenzhen Shenzhen Shentou Properties & Investment November 6 November 5 Property Resources Market pricing 65058513.07 properties 2019 2025 Development Development Co. Ltd. (Group) Ltd.Shenzhen Shenzhen Shenfubao Shenfubao Real estate and December 31 Property January 1 2024 Market pricing 1132075.00 (Group) Co. engineering 2024 Development Ltd.Co. Ltd.Shenzhen Shenzhen Free Shenfubao Trade Zone December 31 Real estate January 1 2024 Market pricing 1560000.00 (Group) Co. Security 2024 Ltd. Service Co. 2502024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Ltd.Shenzhen Shenzhen Shenfubao Shenfubao December 31 Municipal Real estate January 1 2024 Market pricing 1852679.77 (Group) Co. 2024 Service Co.Ltd.Ltd.Custody/contracting of related parties Information on the entrustment management/contracting of the Company Unit: RMB Custody Name of Termination Pricing basis of fees/contracting Name of Type of Starting date of entrusting date of custody -out fees entrusted entrusted/contra entrustment/con party/contractin entrustment/con fee/contracting- recognized in party/contractor cting-out assets tracting-out g-out party tracting-out out fee the current period Information on the related party management/contracting (3) Related party leases The COOEC acted as the lessor: Unit: RMB Lease income Type of leased Lease income recognized in Lessee recognized in this asset previous period period Courtyard by Marriott Shenzhen Bay Branch of Investment 1265195.37 Shenzhen Continental Hotel Management Co. Ltd. properties Renaissance Shenzhen Bay Hotel Branch of Investment 1665257.39 Shenzhen Continental Hotel Management Co. Ltd. properties The COOEC acted as lessee: Unit: RMB Rental costs for Variable lease short-term leases payments not and low-value Interest expense on included in the Increase in right- asset leases for Paid rents lease liabilities measurement of of-use assets Type of simplified assumedlease liabilities (if Lessor leased processing (if applicable) asset applicable) Amoun Amoun Amoun Amoun Amoun Amoun Amoun Amoun Amoun Amoun t in the t in the t in the t in the t in the t in the t in the t in the t in the t in the current previou current previou current previou current previou current previou period s period period s period period s period period s period period s period Shenzhen Investm Investment ent 844905 820296 33604. 66547.Building Hotel properti .00 .12 31 40 Co. Ltd. es Shenzhen High-tech Zone Investm Development ent 57415. 22302. 49392. 111132 4363.3 -422.03 and properti 65 40 00 .00 3 Construction es Co. Ltd. 2512024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Shenzhen Grand Industrial Zone (Shenzhen Investm Export ent 11256.Processing properti 87 Zone) es Development Management Group Co. Ltd.Shenzhen Special Investm Economic Zone ent 237999 221333 660000 702000 51688. 81134.Real Estate & properti .96 .32 .00 .00 66 66 Properties es (Group) Co.Ltd.Investm Shenzhen ent 38243. 13200. 3131.5 235308 Petrel Hotel properti 62 00 1 .17 Co. Ltd.es Investm Shenzhen ent 470269 231660 41958. 28809. 12042 Shenfubao(Gro properti .80 .00 61 46 67.57 up) Co. Ltd.es Shenzhen Investm - Investment ent 247497 591394 27394 34822 66246. 192376 18145 Holdings Co. properti .25 .63 16.18 45.09 71 .34 18.69 Ltd. es Shenzhen Bay Investm Technology ent 11196 11196 Development properti 54.36 54.36 Co. Ltd. es Shenzhen Investm Binjiang ent 303785 41600.Industrial Co. properti .70 00 Ltd. es Hong Kong Investm HOI PAN ent 146234 Development properti .62 Co. Ltd. es Related-party leases (4) Related party guarantees The Company as the guarantor Unit: RMB Amount Maturity date of Whether the guarantee The secured party Start date of guarantee guaranteed guarantee has been fulfilled Shenzhen Rongyao Real Estate 3491371743.56 November 27 2019 March 17 2026 No Development Co. Ltd.Yangzhou Wuhe Real Estate Co. 200094573.77 January 19 2024 January 18 2029 No Ltd.The Company as the guaranteed party 2522024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Unit: RMB Maturity date of Whether the guarantee Guarantee Amount guaranteed Start date of guarantee guarantee has been fulfilled Guoren P&C Insurance 82093413.89 June 26 2022 April 30 2024 Yes Co. Ltd.Shenzhen Shenda Credit Enhancement 16750000.00 March 29 2022 March 28 2025 No Financing Guarantee Co. Ltd.Shenzhen Shenda Credit Enhancement 36850000.00 March 29 2022 March 28 2026 No Financing Guarantee Co. Ltd.Shenzhen Shenda Credit Enhancement 13400000.00 March 29 2022 March 28 2027 No Financing Guarantee Co. Ltd.Shenzhen Credit Guarantee Group Co. 1684498.43 December 29 2023 December 29 2024 Yes Ltd.Guoren P&C Insurance 73027582.04 January 10 2024 1 No Co. Ltd.Guoren P&C Insurance 89983901.50 May 22 2023 2 No Co. Ltd.Note: 1 Expiry of statute of limitations 2 Expiry of statute of limitations Notes to related party guarantee (5) Information on inter-bank lending of capital of related parties Unit: RMB Related party Amount borrowed Start date Maturity date Notes Borrowed from Lending (6) Asset transfer and debt restructuring of related parties Unit: RMB Amount in the previous Related party Related party transactions Amount in the current period period (7) Remuneration of key officers Unit: RMB Item Amount in the current period Amount in the previous period Remuneration of key officers 10738322.13 12312227.12 2532024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. (8) Other related party transactions Not applicable 6. Accounts receivable and payable of related parties (1) Receivables Unit: RMB Ending balance Beginning balance Project Related party Provision for Provision for Book balance Book balance bad debts bad debts Accounts Dongguan Shenzhen Investment Holdings 270000.008100.001784025.1972849.36 receivable Investment Development Co. Ltd.Hebei Shenbao Investment Development 41683941.801916102.5227085777.03812573.31 Co. Ltd.Kunpeng Industrial Source Innovation 182417.355472.52 Center (Shenzhen) Co. Ltd.Shantou Huafeng Real Estate Development 177667.235330.02199614.215434.84 Co. Ltd.Shantou Hualin Real Estate Development 135808.7213580.80 Co. Ltd.Shenzhen Chuangke Development Co. Ltd. 6075155.48 222749.53 1607922.88 48237.69 Shenzhen Credit Guarantee Group Co. Ltd. 157200.00 4716.00 Shenzhen High-tech Zone Development 2837150.5585114.522753626.63253302.70 and Construction Co. Ltd.Shenzhen Convention and Exhibition 936380.6528091.422511418.7389213.56 Center Management Co. Ltd.Shenzhen Special Economic Zone Real 5548078.33347553.2012659861.032147549.43 Estate & Properties (Group) Co. Ltd.Research Institute of Tsinghua University in 73234.712197.0457574.311727.23 Shenzhen Shenzhen Total Logistics Service Co. Ltd. 466227.00 13986.81 236927.70 7107.83 Shenzhen Shenzhen-Hong Kong Science and Technology Innovation Park Operation 5572997.25 167189.92 3342750.39 100282.51 and Development Co. Ltd.Shenzhen Shenzhen-Hong Kong Science and Technology Innovation Cooperation 117000.00 3510.00 Zone Development Co. Ltd.Shenzhen Shenshan Special Cooperation Zone Shenzhen Investment Holdings 202435.05 6076.05 508084.64 15242.54 Investment Development Co. Ltd.Shenzhen Urban Construction Industrial 391346.4211740.39 Park Development Co. Ltd.Shenzhen Chenglong Real Estate 395685.7511870.57 Development Co. Ltd.Shenzhen Grand Industrial Zone (Shenzhen Export Processing Zone) Development 266132.23 58423.97 480229.65 64846.89 Management Group Co. Ltd.Shenzhen Fubao Park Operation Co. Ltd. 42352.90 1270.59 5365.01 160.95 Shenzhen Environmental Technology 2837617.8286245.771653450.9763121.44 Group Co. Ltd.Shenzhen Jiaotongchang Station 5.510.17 Construction and Development Co. Ltd.Shenzhen Shenfubao (Group) Tianjin 1581956.05 175339.45 1604015.82 66998.26 2542024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Industrial Development Co. Ltd.Shenzhen Shenfubao (Group) Tianjin 2588645.10150772.573255544.36155467.93 Investment and Development Co. Ltd.Shenzhen Shenfubao (Group) Co. Ltd. 1671102.46 52471.28 2567475.48 77024.27 Shenzhen Shentou Property Development 8591322.98424230.212378435.9871353.08 Co. Ltd.Shenzhen Shenyue United Investment Co. 3450150.13123326.684407622.21240783.73 Ltd.Shenzhen Sports Industry Group Co. Ltd. 4402968.12 132089.04 Shenzhen Sports Fashion Culture and 2429.4072.88 Sports Development Co. Ltd.Shenzhen Investment Holdings Co. Ltd. 5588052.61 225329.98 4131697.18 144179.32 Shenzhen Wancheng Logistics Co. Ltd. 171749.77 5152.49 Shenzhen Cultural Enterprise Development 935.0828.05 Co. Ltd.Shenzhen Bay (Baoding) Innovation 182228.135466.84156427.624692.83 Development Co. Ltd.Shenzhen Bay Technology Development 137865750.9 49188098.911508080.647568725.60 Co. Ltd. 7 Shenzhen Xiangmihu International 461923.2813857.70992580.2029777.40 Exchange Center Development Co. Ltd.Shenzhen Infinova Smart Park Technology 913838.0090555.141493000.0044790.00 Co. Ltd.China Shenzhen Foreign Trade (Group) 24500.002450.0024500.006600.00 Company Limited 146264953.2214687459.6 Total 5871324.78 12129262.68 97 Contract Hebei Shenbao Investment Development 215129.91361513.73 assets Co. Ltd.Shenzhen Grand Industrial Zone (Shenzhen Export Processing Zone) Development 118043.22 231455.46 Management Group Co. Ltd.Shenzhen Fubao Park Operation Co. Ltd. 26457.15 Shenzhen Shenfubao (Group) Co. Ltd. 43500.00 Shenzhen Shenfubao East Investment and 14704.85 Development Co. Ltd.Shenzhen Investment Holdings Co. Ltd. 88223.00 133597.44 Shenzhen Xiangmihu International 14806.9414806.94 Exchange Center Development Co. Ltd.Shenzhen Urban Construction Mingyuan 18450.0018450.00 Industrial Co. Ltd.Total 454653.07 844485.57 Other Shenzhen High-tech Zone Development receivable 35605.73 1068.17 167086.43 10525.99 and Construction Co. Ltd.s Shenzhen Convention and Exhibition 1000.0030.001000.00 Center Management Co. Ltd.Shenzhen Special Economic Zone Real 100000.0030000.00100000.0030000.00 Estate & Properties (Group) Co. Ltd.Shenzhen Binjiang Industrial Co. Ltd. 49397.40 1481.92 10000.00 300.00 Shenzhen Grand Industrial Zone (Shenzhen Export Processing Zone) Development 102583.54 10258.35 102583.54 3258.35 Management Group Co. Ltd.Shenzhen Qianhai Advanced Information 10720575.276623517.6210720575.27321617.26 Service Co. Ltd.Shenzhen Shenfubao(Group) Co. Ltd. 81264.60 8126.46 81264.60 2437.94 Shenzhen Shenfubao East Investment and 350000.00 35000.00 350000.00 10500.00 2552024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Development Co. Ltd.Shenzhen Shentou Property Development 81233.0081233.0081233.0081233.00 Co. Ltd.Shenzhen Investment Holdings Co. Ltd. 685740.90 278254.03 685740.90 157127.32 201499990.1201499990.1 Shenzhen Xinhai Holdings 124493201.20 6044999.71 88 Shenzhen Xinhai Rongyao Real Estate 375068984.5 375068984.5 231729731.1811252069.54 Development Co. Ltd. 5 5 Shenzhen Tianjun Industrial Co. Ltd. 10000000.00 10000000.00 Shenzhen Bay Technology Development 2462441.2373873.2410065313.75301959.41 Co. Ltd.Shenzhen Wufang Ceramic Industry Co. 1747264.251747264.251747264.251747264.25 Ltd.Hong Kong HOI PAN Development Co. 48130.741443.92 Ltd. 603034211.3610681036.4 Total 365114483.34 19963292.77 97 (2) Payables Unit: RMB Ending book Beginning book Project Related party balance balance Accounts payable Guoren P&C Insurance Co. Ltd. 200000.00 Shenzhen General Institute of Architectural Design and 1316929.342102761.00 Research Co. Ltd.Shenzhen Qianhai Advanced Information Service Co. Ltd. 7126060.00 8126060.00 Shenzhen Shentou Property Development Co. Ltd. 1694981.99 889007.87 Shenzhen Tefa Port Service Co. Ltd. 705360.00 564288.00 Total 11043331.33 11682116.87 Other payables Shenzhen Credit Guarantee Group Co. Ltd. 1494841.29 1494841.29 Shenzhen Talent Recruitment International Co. Ltd. 147132.37 147132.37 Shenzhen Free Trade Zone Life Service Co. Ltd. 4850.00 4850.00 Shenzhen Urban Construction and Development (Group) Co. 152227.00152227.00 Ltd.Shenzhen Grand Industrial Zone (Shenzhen Export 86247.0031218.60 Processing Zone) Development Management Group Co. Ltd.Shenzhen Southern Certification Co. Ltd. 34002.15 34002.15 Shenzhen Shenfubao (Group) Co. Ltd. 3178036.23 2863523.56 Shenzhen Shenfubao East Investment and Development Co. 369211.02117693.11 Ltd.Shenzhen Shentou Property Development Co. Ltd. 18106994.63 8621679.48 Shenzhen Cultural Enterprise Development Co. Ltd. 743680.00 773680.00 Shenzhen Tian'an International Building Property 5214345.905214345.90 Management Co. Ltd.Shenzhen Bay Technology Development Co. Ltd. 51990858.29 143003641.12 Shenzhen Bay Area Urban Construction and Development 360752.18360752.18 Co. Ltd.Shenzhen Property Jifa Warehousing Co. Ltd. 202296665.14 42296665.14 Shenzhen Infinova Limited 144219.02 Yangzhou Tourism Development Property Co. Ltd. 345929298.79 369623672.79 Total 630109141.99 574884143.71 2562024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. 7. Commitments from related parties Not applicable 8. Others Not applicable XV. Share-based payments 1. Overview of share-based payments □Applicable □Not applicable 2. Share-based payments settled by equity □Applicable □Not applicable 3. Share-based payments settled by cash □Applicable □Not applicable 4. Current share payment expenses □Applicable □Not applicable 5. Modification and termination of share-based payment 6. Others XVI. Commitments and contingencies 1. Significant commitments Significant commitments on the balance sheet date Large-value contracts that are being performed or to be performed Item Amount in this period Previous year Large-value contracts that have been signed but not 2399978869.29 2528685973.91 recognized in the financial statements 2572024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. 2. Contingencies (1) Significant contingencies on the balance sheet date (1) Litigation matters concerning the transfer of Jiabin Building In 1993 the Company signed the Contract for Transfer of Development Rights and Interests of Jiabin Building with Shenzhen Jiyong Property Development Co. Ltd. (current name hereinafter referred to as "Jiyong Company"). Due to the ineffective execution of the contract the Company subsequently filed a series of lawsuits against the parties involved in the project but the outcome of the lawsuits failed to enable the Company to obtain the benefits claimed. Therefore the Company has made provision for bad debts in the full amount of RMB 93.81 million for accounts receivable from jiyong Company for the transfer of Jiabin Building. On October 31 2018 the Shenzhen Intermediate People's Court made a civil judgment ruling that the Company's application for the bankruptcy of Jiyong Company was not accepted. The Company appealed against the ruling. On April 29 2019 the Guangdong Provincial Higher People's Court ruled to reject the Company's appeal and uphold the original ruling. At the issuance date of the report there is no new development in the case. (2) Litigation case concerning Shenzhen Basepoint Intelligence Co. Ltd. On August 20 2017 Shenzhen Facility Management Community Co. Ltd. signed the Software Service Contract for Smart Facility Management Platform of China Merchants Property with China Merchants Group. Meanwhile the Company intended to purchase a RMB 3 million facility management system (covering 31 items) for this project from Shenzhen Basepoint Intelligence Co. Ltd. (hereinafter referred to as "Basepoint"). In the project delivery only 11 items delivered by Basepoint passed the acceptance inspection leaving the full delivery unfinished. Therefore the Company failed to reach a consensus on payment with Basepoint. In 2021 Basepoint sued the Company and froze the Company's funds of RMB 3 million. The judgment of the first instance dated August 10 2022 ruled that the Company shall compensate RMB 3 million to Basepoint. The Company refused to accept the judgment of the first instance and instituted an appeal for the second instance in 2022. The second instance was heard on August 11 2023 and is awaiting judgment. On April 19 2024 the Shenzhen Intermediate People's Court ruled that the case shall be remanded to the Futian District People's Court for retrial which is currently in progress. (3) Arbitration case concerning private lending dispute involving Shenzhen Rongyao Real Estate Development Co. Ltd. As Xinhai Rongyao and Xinhai Holdings failed to repay the loan principal and interest to Rongyao Real Estate on schedule Rongyao Real Estate has applied to Shenzhen Court of International Arbitration for arbitration. The arbitration award ordered that Xinhai Rongyao and Xinhai Holdings shall repay all the loan principal of RMB 671.9138 million and the corresponding interests (at an annual interest rate of 11% calculated based on the principal of RMB 671.9138 million from August 4 2022 to the date of full repayment of the loan; provisionally amounting to RMB 49.0684 million) to Rongyao Real Estate. The award further decided that Xinhai Investment Company Expander Property Management Lianghong Industrial and Tiancheng Investment shall bear joint and several liability for the obligations and liabilities of Xinhai Rongyao and Xinhai Holdings in connection with the first arbitration claim of repayment mentioned above. It was ruled that all the respondents shall bear the attorney fees of RMB 1.2 million paid by Rongyao Real Estate and all the respondents shall bear the arbitration costs and property preservation expenses of this case. The provisional total amount of the above stands at RMB722.1822 million.On August 7 2023 Xinhai initiated a proceeding with Shenzhen Intermediate People's Court to confirm the validity of the arbitration agreement which led to the temporary suspension of the hearing of the case by the Arbitration Court. Shenzhen Intermediate People's Court has conducted a trial (hearing) of the case on confirming the validity of the arbitration agreement on December 27 2023. The Court has rejected the application of the respondent upon the hearing. The case was heard in Shenzhen Court of International Arbitration on August 30 2024 and is pending the award of the arbitration court. (4) Arbitration case concerning equity transfer dispute of Shenzhen Properties & Resources Development (Group) Ltd. 2582024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. As Xinhai Rongyao failed to pay the compensation for investment loss to Shenzhen Properties & Resources Development (Group) Ltd. (hereinafter referred to as "SZPRD") as agreed SZPRD has applied to the Shenzhen Court of International Arbitration for arbitration. It was ruled that Xinhai Rongyao shall pay RMB 170556833.33 to SZPRD as compensation for investment losses; that Sichuan Trust Company does not legally possess the 1% equity of Shenzhen Rongyao Real Estate Development Co. Ltd.registered in its name confirming that Xinhai Rongyao is the actual owner of the said 1% equity; that Xinhai Rongyao shall pledge and register its actually-held 31% equity of Shenzhen Rongyao Real Estate Development Co. Ltd. to SZPRD; that Sichuan Trust Company shall facilitate the registration procedures for the pledge of the 1% equity of Shenzhen Rongyao Real Estate Development Co. Ltd. in the aforesaid third arbitration claim; that Xinhai Rongyao and Sichuan Trust Company shall bear the attorney fees of RMB 780000 paid by SZPRD; that Xinhai Rongyao and Sichuan Trust Company shall bear all the arbitration costs and property preservation expenses of this case. The provisional total amount involved in these rulings amounts to RMB 171336833.33. On April 12 2024 an arbitration award was received ruling that Xinhai Rongyao shall pay SZPRD compensation of RMB 50 million for investment loss; that Xinhai Rongyao shall pledge and register 30% of its equity in Rongyao Real Estate to SZPRD; Xinhai Rongyao shall compensate SZPRD for legal fees of RMB 150000 preservation fees of RMB 3000 preservation insurance costs of RMB 41120.84 and arbitration fees of RMB 658188.60. On June 27 2024 the 30% equity of Xinhai Rongyao was finally pledged to the Group through the court enforcement procedure and continued to be sealed up and frozen. On November 4 2024 the judicial freezing was immediately enforced after the 1% equity was transferred to Xinhai Rongyao which safeguarded the rights and interests of our State-owned assets to the greatest extent. (5) Litigation case concerning contract dispute of Shenzhen Rongyao Real Estate Development Co. Ltd. On November 1 2021 Shenzhen Rongyao Real Estate Development Co. Ltd. (hereinafter referred to as "Rongyao Real Estate") Shenzhen Xinhai Rongyao Real Estate Development Co. Ltd. (hereinafter referred to as "Xinhai Company") Shenzhen Mingde Xincheng Investment Consulting Co. Ltd. (hereinafter referred to as "Mingde Company") and Shenzhen Yinian Real Estate Development Co. Ltd. (hereinafter referred to as "Yinian Company") signed the Four-party Agreement which stipulated that Rongyao Real Estate shall assist the parties to transfer the subject rights and interests into the project designated by Yinian Company and Yinian Company shall make payment to the designated account of Rongyao Real Estate in full and on schedule as agreed. Subsequently Shenzhen Hezheng Real Estate Group Co. Ltd. (hereinafter referred to as "Hezheng Company") issued a Reply Letter and a Payment Plan Letter committing that if Yinian Company fails to repay on schedule Hezheng Company will bear the responsibility for repayment to Rongyao Real Estate.Due to the aforementioned obligor's failure to make timely payments which constitutes a serious breach of the agreement and severely undermines the legitimate rights and interests of Rongyao Real Estate the latter has filed a lawsuit with the court demanding that the relevant obligor repay the outstanding equity transfer payment of RMB 65250598.72 and pay the liquidated damages for overdue payment of RMB 7600806.70 (calculated at a daily rate of 0.03% on the unpaid principal of the equity transfer payment provisionally calculated up to December 5 2023 and should be actually calculated to the date of full repayment).The case was heard by the Longhua District People's Court on July 5 2024 and is currently awaiting the Court's judgment. (6) The dispute case regarding the loan contract of Shenzhen Rongyao Real Estate Development Co. Ltd. Shenzhen Qianhai Advanced Information Service Co. Ltd. and Shenzhen Xinhai Rongyao Real Estate Development Co. Ltd.On November 5 2021 Rongyao Real Estate and Qianhai Advanced Information Service signed the Agreement on Advance Payment and Tax Payment stipulating all taxes and fees arising from the Relocation Compensation and Resettlement Agreement involved in the case shall be borne by Qianhai Advanced Information Service. On the same day Xinhai Rongyao issued a Letter of Commitment to Bear the Relevant Taxes and Fees for Relocation Compensation pledging to provide joint and several guarantee for the obligation of Qianhai Advanced Information Service to pay all taxes and fees arising from the Relocation Compensation and Resettlement Agreement. 2592024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. In order to expedite the project development and mitigate the substantial economic losses caused by the serious delay in the project schedule to Rongyao Real Estate Rongyao Real Estate agreed to the application from Xinhai and advanced relevant taxes and fees totaling RMB10720575.27 on behalf of Qianhai Advanced Information Service on July 20 2021 and January 26 2022. As of now Xinhai still owes interest of RMB 3493287.37 (calculated at an annualized rate of 11% until July 31 2024 and shall be actually calculated until the date of full repayment). All parties had no objections to this and signed the Confirmation Letter on Claims and Debts on November 30 2023.To sum up Xinhai's breach of contract has seriously violated the relevant agreements and commitment letters. Rongyao Real Estate has filed a lawsuit with the Longhua District People's Court. The case was heard on March 6 2025 with the court's judgment still pending. (7) The contract dispute case involving Shenzhen Rongyao Real Estate Development Co. Ltd. Shenzhen Qianhai Advanced Information Service Co. Ltd. Shenzhen Xinhai Rongyao Real Estate Development Co. Ltd. and Shenzhen Xinhai Holdings Co.Ltd.During the demolition process of the Bangling Project Qianhai Advanced Information Service (an affiliated company of Xinhai) repeatedly sent letters to Rongyao Real Estate requesting an advance payment of the demolition service fees and pledging to take the amount prepaid by the latter as the principal and pay the occupancy fee to the latter at an annualized interest rate of 11% based on the actual duration the prepaid amount is actually utilized (i.e. from the date the service fee is actually prepaid until the cumulative demolition area reaches 61460 square meters). If Qianhai Advanced Information Service fails to complete the demolition work on schedule Rongyao Real Estate has the right to request Xinhai to refund the principal difference and relevant occupancy fee. Additionally Rongyao Real Estate is entitled to impose a penalty interest of 50% of the aforementioned 11% interest rate on the difference based on the duration of the occupancy. Xinhai Rongyao and Xinhai Holdings shall be jointly and severally liable for the above debts.In order to expedite the project development and reduce the substantial economic losses caused by the serious delay of the project to Rongyao Real Estate Rongyao Real Estate agreed to the application of Xinhai and paid the relevant demolition service fees in advance. As of now Xinhai still owes the interest of the demolition service fees amounting to RMB12376819.89. All parties have no objections to this and signed the Confirmation Letter on Claims and Debts on November 30 2023.In summary the breach of contract by Xinhai has seriously violated the terms of relevant agreements and commitment letters.Rongyao Real Estate has filed a lawsuit with the Longhua District People's Court. The case has been officially registered and is currently awaiting the Court's scheduling for a hearing. (8) On the dispute between Shenzhen Rongyao Real Estate Development Co. Ltd. and Shenzhen Herunxiang Trading Co. Ltd. & Shenzhen Xinhai Rongyao Real Estate Development Co. Ltd. over the creditor's right and debt of the registered tax payment for the transfer of the certified real estate of the former Shenfa Factory.In order to accelerate the development progress of the Bangling project on October 18 2021 Herunxiang and Xinhai Rongyao issued an Application Letter for Advancing Payment of Taxes and Fees Related to the Transfer and Cancellation of the Certified Property of the Former Shenfa Factory to Rongyao Real Estate. The application letter stated that due to the financial difficulties of Herunxiang they applied to Rongyao Real Estate to advance the taxes and fees amounting to a total of approximately RMB10 million to RMB15 million (the final amount to be determined by the property registration department) incurred by Herunxiang for the transfer registration of the certified property of the former Shenfa Factory. These taxes and fees will subsequently be repaid by Rongyao Real Estate on behalf of Herunxiang.On November 5 2021 Xinhai Rongyao issued another Letter of Commitment for Repayment to Rongyao Real Estate pledging to subsequently refund the taxes and fees as well as interests incurred on behalf of Herunxiang and agreed that the proceeds from the 2602024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. collaborative projects such as Guanlan Bengling could be used to offset the guaranteed payments under this Letter of Commitment on a priority basis.In order to expedite the project development and mitigate the substantial economic losses caused by the serious delay of the project to Rongyao Real Estate Rongyao Real Estate agreed on August 2 2022 to the request from Herunxiang and Xinhai Rongyao to advance the payment of transfer taxes and registration fees for the Shenfa Factory totaling RMB20.0428 million on behalf of Herunxiang and Xinhai Rongyao. All parties involved had no objection to this arrangement and signed the Confirmation Letter on Claims and Debts on November 30 2023.Up to now Herunxiang and Xinhai Rongyao have failed to repay the principal and interest as agreed which constitutes a breach of contract. The case was successfully filed at the Longhua District People's Court on August 21 2024 and has not yet been heard. (9) The lawsuit case regarding the property management fees of Shenzhen Xuansheng Industrial Development Co. Ltd. Part of the Overseas Friendship Building located at No. 12 Yingchun Road Luohu District Shenzhen is owned by the United Front Work Department of Shenzhen Municipal Party Committee and Shenzhen Jinhailian Property Management Co. Ltd. has been authorized by the United Front Work Department of Shenzhen Municipal Party Committee to manage the said property. On December 31 2006 Jinhailian and Shenzhen Yisheng Industrial Development Co. Ltd. signed the Property Management Agreement of Overseas Friendship Building which stipulated that Xuansheng Company shall provide property management services to Jinhailian and Jinhailian shall pay property management fees to Xuansheng Company for certain floors of the Overseas Friendship Building including the first floor floors 3-8 at the rate of RMB 5 per square meter. On April 24 2024 Jinhailian received a summons from the Luohu District People's Court of Shenzhen City regarding the property service contract dispute case filed by Xuansheng Company against Jinhailian with a litigation subject matter amounting to RMB 1869272. (The total amount which was sued by Xuansheng Company against Jinhailian for the payment of property management fees utilities air conditioning fees and late payment penalties for floors 8-10 31 and the underground parking lot of Overseas Friendship Building).According to the Property Management Agreement of Overseas Friendship Building signed in 2006 the property management fees for the 8th floor payable by the Company is calculated at RMB 5 per square meter per month and does not include floors 9-10 31 and the parking lot on the second basement level. Xuansheng Company sued Jinhailian for paying property management fees at RMB 12 per square meter per month which is not recognized by Jinhailian. During this period Jinhailian repeatedly communicated and coordinated with Xuansheng Company to no avail. Xuansheng Company still claimed that Jinhailian pay the property management fees at RMB 12 per square meter per month. Since Xuansheng Company has failed to perform the terms of the management agreement and has not provided invoices for the property management fees (at the rate of RMB 5 per square meter per month) Jinhailian was unable to pay the relevant property management fees. On June 13 2024 the Luohu District People's Court of Shenzhen made a first-instance judgment ruling that Shenzhen Jinhailian Property Management Co. Ltd. shall pay a total of RMB 327250.18 for property management fees water fees air conditioning fees and late payment penalties for floors 8-10 of Overseas Friendship Building from June 12 2022 to February 29 2024 to Shenzhen Xuansheng Industrial Development Co. Ltd. at the rate of RMB 5 per square meter. In addition for the 31st floor Jinhailian shall pay a total of RMB 91831.89 for property management fees and late payment penalties from January 1 2019 to February 29 2024 at the rate of RMB 3 per square meter. The total amount stands at RMB 419082.07 (the property management fees for floors 9-10 and the 31st floor are determined based on objective facts). Not satisfied with the judgment of the first instance Jinhailian filed an appeal and the case is pending the second-instance court hearing. As of December 31 2024 Jinhailian is expected to pay RMB 419082.07 (of which RMB 134876.56 has been accrued for property management fees for the vacancy period on a monthly basis). (10) As a real estate developer the Company has provided mortgage loan guarantee and paid loan deposits for buyers of commercial housing according to the operating practice of the real estate industry. As of December 31 2024 the balance of deposits for which the guarantee hasn't yet been released stood at RMB 1135580.83 and the said guarantee will be released upon the full repayment of the mortgage loans. 2612024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. As a real estate developer the Company has provided mortgage loan guarantee for buyers of commercial housing in accordance with the operating practice of the real estate industry. As of December 31 2024 the balance of the guarantee that has not been released was RMB 387671636.94 and the said guarantee will be released upon the full repayment of the mortgage loans. (2) Notes shall be given even if there were no significant contingencies required to be disclosed by the Company The Company has no significant contingencies required to be disclosed. 3. Others Not applicable XVII. Events after the balance sheet date 1. Significant non-adjustment matters Unit: RMB Impact number on financial Reasons why the impact Item Contents position and operating results number cannot be estimated 2. Profit distribution Proposed dividend per 10 shares (RMB) 0 Proposed bonus shares per 10 shares (shares) 0 Proposed shares converted per 10 shares held (shares) 0 Dividend per 10 shares declared upon deliberation and approval (RMB) 0 Bonus shares per 10 shares declared upon deliberation and approval (shares) 0 Number of shares converted per 10 shares declared upon deliberation and 0 approval (shares) 3. Sales return 4. Events after the balance sheet date XVIII. Other significant events 1. Correction of accounting errors in prior period (1) Retrospective restatement method Unit: RMB Names of statement items Contents of correction of Processing procedure affected of comparative Cumulative impact accounting errors periods 2622024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. (2) Prospective application method Contents of correction of accounting Reasons for adopting the prospective Approval procedure errors application method 2. Debt restructuring Not applicable 3. Asset replacement (1) Exchange of non-monetary assets Not applicable (2) Replacement of other assets Not applicable 4. Annuity plan Not applicable 5. Discontinued operations Unit: RMB Profit from discontinued Income tax Net Item Revenue Costs Total profits operations attributable expenses profit to owners of the parent company Other explanations: 6. Segment information (1) Determination basis and accounting policies for reporting segments The Company determines the reporting segments based on the internal organizational structure management requirements and internal reporting system and in light of business segments. The operating performance of real estate sales property management and leasing services are assessed by the Company respectively. Assets and liabilities shared among all segments are allocated to various segments based on their scale ratios. (2) Financial information on reporting segments Unit: RMB Real estate Property Inter-segment Item Leasing business Total business management offset 2632024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Operating revenue 1003780119.17 1594488341.49 135890423.39 2734158884.05 Operating costs 843578721.75 1320671101.86 85764264.72 2250014088.33 Total assets 12591763913.19 2173987729.50 527453855.61 15293205498.30 Total liabilities 10234673651.40 1657873902.21 170225988.55 12062773542.16 (3) If the Company has no reporting segments or cannot disclose the total assets and total liabilities of each reporting segment the reasons shall be stated.Not applicable (4) Other notes Not applicable 7. Other significant transactions and events that influence the decision-making of investors Not applicable 8. Others Not applicable XIX. Notes to the main items of the parent company's financial statements 1. Accounts receivable (1) Disclosure by aging Unit: RMB Aging Ending book balance Beginning book balance Within 1 year (including 1 year) 2345620.53 123156033.99 1-2 years 123067359.04 1024931.55 2 to 3 years 12649.00 716023.90 Over 3 years 96824380.35 96824380.44 3 - 4 years 9756.09 4 to 5 years 9756.00 112354.95 Over 5 years 96814624.35 96702269.40 Total 222250008.92 221721369.88 (2) Disclosure by provision method for bad debts Unit: RMB Ending balance Beginning balance Type Book balance Provision for bad Book Book balance Provision for bad Book 2642024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. debts value debts value Provisio Provisio Amount Ratio Amount Amount Ratio Amount n ratio n ratio Account s receivab le with provisio 982469 982469 982469 982469 44.21%100.00%0.0044.31%100.00%0.00 n for bad 09.94 09.94 09.94 09.94 debts on an individu al basis Includ ing: Account s receivab le with provisio 124003111340112869123474344530120029 n for bad 55.79% 8.98% 55.69% 2.79% 098.9817.20081.78459.941.16158.78 debts on a combina tion basis Includ ing: 222250109380112869221721101692120029 Total 100.00% 49.22% 100.00% 45.86% 008.92927.14081.78369.88211.10158.78 Provision for bad debts on an individual basis: 98246909.94 Unit: RMB Beginning balance Ending balance Name Provision for Provision for Reasons for Book balance Book balance Provision ratio bad debts bad debts provision Shenzhen Involved in Jiyong Property 93811328.05 93811328.05 93811328.00 93811328.00 100.00% litigation and Development irrecoverable Co. Ltd.Luohu District Long aging and Economic 54380.35 54380.35 54380.35 54380.35 100.00% estimated to be Development irrecoverable Company Shenzhen Tewei Long aging and Industrial Co. 2836561.00 2836561.00 2836561.00 2836561.00 100.00% estimated to be Ltd. (Chenhui irrecoverable Building) Accounts receivable with insignificant Involved in single amount 1544640.54 1544640.54 1544640.54 1544640.54 100.00% litigation and but subject to irrecoverable provision for bad debts on an 2652024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. individual basis Total 98246909.94 98246909.94 98246909.94 98246909.94 Provision for bad debts on a portfolio basis: 11134017.20 Unit: RMB Ending balance Name Book balance Provision for bad debts Provision ratio Credit risk characteristic 111877321.8511134017.20 combination Government funding 12125777.13 combination Total 124003098.98 11134017.20 Explanation on the basis for determining the combination: If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses: □ Applicable □Not applicable (3) Provision for bad debts accrued recovered or reversed for the current period Provision for bad debts for the current period: Unit: RMB Changes in the current period Beginning Type balance Recovery or Ending balance Provision Write-off Others reversal Provision for bad debts on an 98246909.94 98246909.94 individual basis Provision for bad debts made 3445301.16 7688716.04 11134017.20 by portfolio Total 101692211.10 7688716.04 109380927.14 Significant amounts of recovered or reversed provision for bad debts for the current period: Unit: RMB Basis for determining Recovered or reversed the ratio of provision Entity name Reason for reversal Recovery method amount for bad debts and its rationality (4).Actual write-off of accounts receivable for the current period Unit: RMB Item Amount of write-off Including write-off of important accounts receivable: Unit: RMB Whether the fund Write-off Nature of accounts Amount of write- Reasons for write- is generated by Entity name procedures receivable off off related party performed transactions Explanation on write-off of accounts receivable: 2662024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. (5) Top five accounts receivable by the debtor in terms of the ending balance and contract assets Unit: RMB Ending balance of Ratio to the total provision for bad Ending balances of amount of ending Ending balance of Ending debts of accounts accounts balance of Entity name accounts balance of receivable and receivable and accounts receivable contract assets provision for contract assets receivable and impairment of contract assets (%) contract assets Shenzhen Futian Talent 109392112.37109392112.3749.22%10939211.24 Housing Co. Ltd.Shenzhen Jiyong Property Development 93811328.05 93811328.05 42.21% 93811328.05 Co. Ltd.Shenzhen Futian District Government 12125777.1312125777.135.46% Property Management Center Shenzhen Tewei 2836561.002836561.001.28%2836561.00 Industrial Co. Ltd.Shenzhen Feihuang 769919.05769919.050.35%769919.05 Industrial Co. Ltd.Total 218935697.60 218935697.60 98.52% 108357019.34 2. Other receivables Unit: RMB Item Ending balance Beginning balance Other receivables 4279938165.85 4489713785.01 Total 4279938165.85 4489713785.01 (1) Interest receivable 1) Classification of interest receivable Unit: RMB Item Ending balance Beginning balance 2) Significant overdue interest Unit: RMB Whether impairment Borrower Ending balance Overdue time Reason for overdue occurs and the basis for judgment Other explanations: 3) Disclosure by provision method for bad debts □Applicable □Not applicable 2672024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. 4) Provision for bad debts accrued recovered or reversed for the current period Unit: RMB Changes in the current period Beginning Type Recovery or Resale or write- Ending balancebalance Provision Other changes reversal off Significant amounts of recovered or reversed provision for bad debts for the current period: Unit: RMB Basis for determining Recovered or reversed the ratio of provision Entity name Reason for reversal Recovery method amount for bad debts and its rationality Other explanations: 5) Actual write-off of interest receivable for the current period Unit: RMB Item Amount of write-off Including write-off of important interest receivable Unit: RMB Whether the fund Write-off Amount of write- Reasons for write- is generated by Entity name Nature of payment procedures off off related party performed transactions Explanation on write-off: Other explanations: (2) Dividends receivable 1) Classification of dividends receivable Unit: RMB Project (or investees) Ending balance Beginning balance 2) Significant dividends receivable with aging over 1 year Unit: RMB Whether impairment Reason for not Project (or investees) Ending balance Aging occurs and the basis for withdrawing judgment 3) Disclosure by provision method for bad debts □Applicable □Not applicable 2682024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. 4) Provision for bad debts accrued recovered or reversed for the current period Unit: RMB Changes in the current period Beginning Type Ending balance balance Recovery or Resale or write-Provision Other changes reversal off Significant amounts of recovered or reversed provision for bad debts for the current period: Unit: RMB Basis for determining Recovered or reversed the ratio of provision Entity name Reason for reversal Recovery method amount for bad debts and its rationality Other explanations: 5) Actual write-off of dividends receivable in the current period Unit: RMB Item Amount of write-off Write-off of important dividends receivable Unit: RMB Whether the fund Write-off Amount of write- Reasons for write- is generated by Entity name Nature of payment procedures off off related party performed transactions Explanation on write-off: Other explanations: (3) Other receivables 1) Classification of other receivables by nature of payment Unit: RMB Nature of payment Ending book balance Beginning book balance Guaranteed deposit 2225127.00 2555194.00 Withholding payments 24068.13 39020.00 External transactions 136954520.92 134608516.50 Transactions with subsidiaries 4169668944.36 4383952304.98 Total 4308872660.41 4521155035.48 2) Disclosure by aging Unit: RMB Aging Ending book balance Beginning book balance Within 1 year (including 1 year) 4169820435.08 4378155691.40 1-2 years 97134.37 336882.00 2 to 3 years 35449.05 2692024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Over 3 years 138955090.96 142627013.03 3 - 4 years 35449.05 69600.00 4 to 5 years 69600.00 Over 5 years 138850041.91 142557413.03 Total 4308872660.41 4521155035.48 3) Disclosure by provision method for bad debts Unit: RMB Ending balance Beginning balance Provision for bad Provision for bad Book balance Book balance Type debts Book debts Book Provisio value Provisio value Amount Ratio Amount Amount Ratio Amount n ratio n ratio Provisio n for bad debts 129990199874110003127631224855105146 accrued 3.02% 15.38% 2.82% 17.62% 664.2154.18210.03562.6136.08026.53 on an individu al basis Includ ing: Provisio n for bad 417888894704416993439352895571438456 debts 96.98% 0.21% 97.18% 0.20% 1996.200.384955.823472.874.397758.48 made by portfolio Includ ing: 430887289344427993452115314412448971 Total 100.00% 0.67% 100.00% 0.70% 2660.4194.568165.855035.4850.473785.01 Provision for bad debts on an individual basis: 19987454.18 Unit: RMB Beginning balance Ending balance Name Provision for Provision for Provisio Reasons for Book balance Book balance bad debts bad debts n ratio provision Failed to Shum Yip Properties 111203099.25 6057072.72 113562200.85 3558990.82 3.13% recover for a Development Limited long time Failed to Dameisha Tourism 2576445.69 2576445.69 2576445.69 2576445.69 100.00% recover for a Center long time Hong Kong Hengyue Failed to Development Company 3271837.78 3271837.78 3271837.78 3271837.78 100.00% recover for a Limited (Wuyao long time Company) Failed to Elevated Train Project 2542332.43 2542332.43 2542332.43 2542332.43 100.00% recover for a long time Shanghai Yutong Real 5676000.00 5676000.00 5676000.00 5676000.00 100.00% Failed to 2702024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Estate Co. Ltd. recover for a long time Accounts receivable with insignificant single Failed to amount but subject to 2361847.46 2361847.46 2361847.46 2361847.46 100.00% recover for a provision for bad debts long time on an individual basis Total 127631562.61 22485536.08 129990664.21 19987454.18 Provision for bad debts on a portfolio basis: 8947040.38 Unit: RMB Ending balance Name Book balance Provision for bad debts Provision ratio Within 1 year (including 1 151490.724544.713.00% year) 1-2 years (including 2 years) 97134.37 9713.44 10.00% 2-3 years (including 3 years) 3-4 years (including 4 years) 35449.05 17724.53 50.00% 4-5 years (including 5 years) 69600.00 55680.00 80.00% Over 5 years 8859377.70 8859377.70 100.00% Total 9213051.84 8947040.38 Explanation on the basis for determining the combination: The provision for bad debts made according to the general model of expected credit losses Unit: RMB Phase I Phase II Phase III Provision for bad debts Expected credit losses Expected credit loss Expected credit loss Total over the next 12 throughout the duration throughout the duration months (without credit loss) (with credit loss) Balance as of January 9001751.0822439499.3931441250.47 12024 Balance as at January 1 2024 forwarded to the current period Provision for the -10767.96-10767.96 current period Reversal in this period -43942.74 -2567058.54 -2611001.28 Other changes 115013.33 115013.33 Balance as of 8947040.3819987454.1828934494.56 December 31 2024 Basis for division of each stage and ratio of provision for bad debts Changes in the book balance of provision for loss with significant changes in the current period □ Applicable □Not applicable 4) Provision for bad debts accrued recovered or reversed in the current period Provision for bad debts for the current period: Unit: RMB Type Beginning Changes in the current period Ending balance 2712024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. balance Recovery or Resale or write- Provision Others reversal off Other 31441250.47-2506755.9128934494.56 receivables Total 31441250.47 -2506755.91 28934494.56 Reversal or recovery of significant amount of provision for bad debts in the current period: Unit: RMB Basis for determining Recovered or reversed the ratio of provision Entity name Reason for reversal Recovery method amount for bad debts and its rationality 5) Other receivables actually write-off in the current period Unit: RMB Item Amount of write-off Important other receivables write-off: Unit: RMB Whether the fund Write-off Nature of other Amount of write- Reasons for write- is generated by Entity name procedures receivables off off related party performed transactions Explanations on write-off of other receivables: 6) Other receivables of the top five ending balances collected by debtor Unit: RMB Balance of Ratio to the total provision for bad Entity name Nature of amount Ending balance Aging ending balance of debts as at the end other receivables of the period Dongguan Wuhe Real Internal 2113760170.00 Within 1 year 49.05% Estate Co. Ltd. transactions Shenzhen Guangming Internal Wuhe Real Estate Co. 1214000000.00 Within 1 year 28.17% transactions Ltd.Yangzhou Wuhe Real Internal 737560098.36 Within 1 year 17.12% Estate Co. Ltd. transactions SZPRD Xuzhou Internal Dapeng Real Estate 41740134.29 Within 1 year 0.97% transactions Development Co. Ltd.Shum Yip Properties Internal 113562200.85 Over 5 years 2.64% 3558990.82 Development Limited transactions Total 4220622603.50 97.95% 3558990.82 2722024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. 7) Reported as other receivables due to centralized fund management Unit: RMB Other explanations: 3. Long-term equity investments Unit: RMB Ending balance Beginning balance Item Provision for Provision for Book balance Book value Book balance Book value impairment impairment Investment in 1356325401. 1290491401. 1356325401. 1290491401. 65834000.0065834000.00 subsidiaries 10 10 10 10 Investments in associates and 287171419.66 18983614.14 268187805.52 103041364.69 18983614.14 84057750.55 joint ventures 1643496820.1558679206.1459366765.1374549151. Total 84817614.14 84817614.14 76627965 (1) Investment in subsidiaries Unit: RMB Increase/decrease in this period Balance of Beginning provision Beginning Ending balance of for balance balance Investees provision ProvisionAdditional Reduced impairment(book for for Others (book value) investment investment as at the value) impairment impairment end of the period Shenzhen Huangchen 35552671.35552671. g Real 9393 Estate Co.Ltd.Shenzhen Wuhe Industry 44950000.44950000. Investment 0000 and Developme nt Co. Ltd.SZPRD Yangzhou 50000000.50000000. Real Estate 0000 Developme nt Co. Ltd.Dongguan ITC Changshen 20000000.20000000. g Real 0000 Estate Developme nt Co. Ltd. 2732024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Shenzhen Internation al Trade 1953378519533785 Center 1.231.23 Property Manageme nt Co. Ltd.Shenzhen Property Engineerin g and 3000000.0 3000000.0 Constructio 0 0 n Supervisio n Co. Ltd.Shenzhen Property 63509120.63509120. Commercia 3232 l Operation Co. Ltd.Zhanjiang Shenzhen Property Developme nt Co. Ltd.Shum Yip Properties 15834000. 15834000.Developme 00 00 nt Limited SZPRD Xuzhou Dapeng 50000000. 50000000.Real Estate 00 00 Developme nt Co. Ltd.Shenzhen Rongyao 5080000050800000 Real Estate 0.000.00 Developme nt Co. Ltd.Dongguan Wuhe Real 50000000. 50000000.Estate Co. 00 00 Ltd.Shenzhen Guangming 50000000.50000000. Wuhe Real 0000 Estate Co.Ltd.Shenzhen Wuhe 2366417523664175 Urban 7.627.62 Renewal Co. Ltd.Yangzhou 33500000.33500000. Wuhe Real 0000 Estate Co. 2742024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Ltd. 1290491465834000.1290491465834000. Total 01.100001.1000 (2) Investments in associates and joint ventures Unit: RMB Increase/decrease in this period Invest Balanc Beginn ment Adjust e of Beginn ing profit ment Cash provisiEnding ing balanc or loss of divide on for Investe balanc e of Additi Reduc Other Provisi balanc recogn other nds or impair es e provisi onal ed change on for e ized compr profits Others ment (book on for invest invest s in impair (book under ehensi declare as at value) impair ment ment equity ment value) the ve d to be the end ment equity incom paid of the metho e period d I. Joint ventures Shenz hen Proper 480651842923235 ty Jifa 818.50782.6600. Wareh 14798 ousing Co.Ltd.Shenz hen Tian'a n Interna tional - Buildi 7050 5739 1311 ng 937.33 071.22 866.11 Proper ty Manag ement Co.Ltd. 551161829723809 Sub- 755.88916.5672. total 43620 II. Associates Shenz hen Wufan g 18983 18983 Ceram 614.1 614.1 ic 4 4 Industr y Co.Ltd. 2752024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. China Constr uction Engine ering Corpor ation 28940 30092 124493455 Group 994.7 133.3 593.63.02 Smart 1 2 Parkin g Techn ology Co.Ltd. 28940189833009218983 Sub- 1244 93455 994.7614.1133.3614.1 total 593.63 .02 1424 8405718983184222681818983 93455 Total 750.5 614.1 3509. 7805. 614.1.02 5499524 The recoverable amount is determined at the net amount of the fair value minus the disposal expenses □ Applicable □Not applicable The recoverable amount is determined based on the present value of the estimated future cash flows □ Applicable □Not applicable Reasons for the obvious inconsistency between the above information and the information used in previous impairment test or external information Reasons for the difference between the information used in the impairment test of the Company in previous years and the actual situation of the current year (3) Other notes 4. Operating revenue and operating costs Unit: RMB Amount in the current period Amount in the previous period Item Revenue Cost Revenue Cost Primary business 46400327.60 47304177.17 1036514608.68 790579825.41 Other business 17813588.70 17294746.27 Total 64213916.30 47304177.17 1053809354.95 790579825.41 Breakdown of operating revenue and operating costs: Unit: RMB Contract Division 1 Division 2 Total classificati Operating Operating Operating Operating Operating Operating Operating Operating on revenue costs revenue costs revenue costs revenue costs Business 64213916. 47304177.type 30 17 Including: House 64213916. 47304177. 2762024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. leasing 30 17 business Classificati on by business area Including: 64213916.47304177. Shenzhen 3017 Market or customer type Including: Contract type Including: Classificati on by time of commodity transfer Including: Classificati on by contract period Including: Classificati on by sales channel Including: 64213916.47304177. Total 3017 Information related to performance obligations: Types of Amounts Nature of the quality Whether it is assumed by the Time to fulfill goods the assurance Important the main Company that Item performance Company provided by the payment terms responsible are expected to obligations undertakes to Company and person be refunded to transfer related customers obligations Other explanations 2772024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Information related to the transaction prices allocated to the remaining performance obligations: The amount of revenue corresponding to the performance obligations of contracts that have been signed but not performed or not fully performed yet at the end of the reporting period is RMB 0.00 of which RMB_ is expected to be recognized as revenue in _ RMB_ is expected to be recognized in_ and RMB_ is expected to be recognized in _.Major contract change or major transaction prices adjustment of parent company Unit: RMB Item Accounting treatments Amount of impact on revenue Other explanations: 5. Investment income Unit: RMB Item Amount in the current period Amount in the previous period Long-term equity investment income 184223509.994339433.24 calculated under the equity method Investment income from disposal of 757435475.21 long-term equity investments Total 184223509.99 761774908.45 6. Others XX. Supplementary information 1. Breakdown of current non-recurring profit or loss □Applicable □ Not applicable Unit: RMB Item Amount Notes Mainly due to the receipt of Profit or loss from disposal of non-current assets 44657387.86 compensation for the investment properties Government grants included in the current profit or loss (except for those that are closely related to the Company's normal business operations comply with national policies and 1099426.89 regulations are enjoyed according to determined standards and have a sustained impact on the Company's profit or loss) Profit or loss from debt restructuring -54026.93 Non-operating revenue and expenses other than the above- -7288158.92 mentioned items Mainly the income from investments in Other items of profit or loss subject to the definition of non- 184906343.25 joint ventures determined according to recurring profit or loss the income method Less: income tax effects 9424345.24 Affected amount of minority interests (after tax) 137565.58 Total 213759061.33 -- 2782024 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd. Specific circumstances of other profit or loss items that meet the definition of non-recurring profit or loss: □Applicable □ Not applicable Mainly the compensation received by the joint ventures for the expropriation of houses and the investment income is recognized according to the income method. This compensation payment is not sustainable.Notes on the definition of the non-recurring profit or loss items listed in the "Interpretive Announcement No. 1 on Information Disclosure of Companies Issuing Securities to the Public - Non-recurring Profit or Loss" as recurring profit or loss items □ Applicable □Not applicable 2. Return on net assets and earnings per share Earnings per share Weighted average rate of Profit in the reporting period return on net assets Basic earnings per share Diluted earnings per share (RMB/share) (RMB/share) Net profit attributable to ordinary -28.00%-1.8705-1.8705 shareholders of the COOEC Net profit attributable to ordinary shareholders of the Company -33.37%-2.2291-2.2291 after deducting non-recurring profit or loss 3. Differences between accounting data under domestic and foreign accounting standards (1) Differences in net profits and net assets between the financial reports disclosed in accordance with the International Financial Reporting Standards (IFRS) and the PRC Generally Accepted Accounting Principles (GAAP) □Applicable □Not applicable (2) Differences in net profits and net assets between the financial reports disclosed in accordance with the overseas financial reporting standards and the PRC GAAP □Applicable □Not applicable (3) Explanations of the reasons for differences between accounting data under domestic and foreign accounting standards. If adjustments have been made to the differences in data audited by an overseas auditing firm the name of the said overseas institution shall be specified. 4. Others Not applicable 279