深物业B：2020年年度报告摘要（英文版）

Stock Code: 000011 200011 Stock Name: PRD PRD-B Announcement No. 2021-06

SHENZHEN PROPERTIES & RESOURCES DEVELOPMENT

(GROUP) LTD.

ANNUAL REPORT 2020 (SUMMARY)

Part I Important Notes

This Summary is based on the full text of the Annual Report of ShenZhen Properties & Resources Development (Group) Ltd.(together with its consolidated subsidiaries the “Company” except where the context otherwise requires). In order for a full

understanding of the Company’s operating results financial position and future development plans investors should carefully read

the aforesaid full text which has been disclosed together with this Summary on the media designated by the China Securities

Regulatory Commission (the “CSRC”).

Except for the following directors all the other directors attended in person the Board meeting for the review of this Report and its

summary.Name Office title

Reason for not attending the

meeting in person

Proxy entrusted to attend the

meeting

Independent auditor’s modified opinion:

□ Applicable √ Not applicable

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

√ Applicable □ Not applicable

Bonus issue from capital reserves:

□ Yes √ No

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

a cash dividend of RMB4.1 (tax inclusive) per 10 shares is to be distributed to the shareholders with no bonus issue from either

profit or capital reserves.

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

□ Applicable √ Not applicable

This Report and its summary have been prepared in both Chinese and English. Should there be any discrepancies or

misunderstandings between the two versions the Chinese versions shall prevail.Part II Key Corporate Information

1. Stock Profile

Stock name PRD PRD-B Stock code 000011 200011

Stock exchange for stock

listing

Shenzhen Stock Exchange

Contact information Board Secretary Securities Representative

Name Zhang Gejian Ding Minghua and Chen Qianying

Address

20/F International Trade Center Renmin South

Road Luohu District Shenzhen Guangdong

Province P.R.China

39/F International Trade Center Renmin South

Road Luohu District Shenzhen Guangdong

Province P.R.China

Fax 0755-82210610 82212043 0755-82210610 82212043

Tel. 0755-82211020 0755-82211020

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

2. Principal Activities or Products in the Reporting Period

(I) Core Business Overview

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

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

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

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

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

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

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

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

difficulties in proposing new services in the new era. In the past four decades of trials and hardships generations of SZPRD

employees have manifested the enterprise spirit of "going ahead and reforming" and centered on the functional positioning as state

assets of "serving national economic and social development the city the industry and the people". The Company has adhered to the

original aspiration and striven ahead to be a pioneer. Therefore it has made remarkable achievements in development speed and

quality. So far the Company has grown into a large comprehensive industrial group from the project company that built Shenzhen

International Trade Center Building. Looking ahead it will size up the situation and seize the momentum in the new era and phase

and forge ahead toward the goal and vision of becoming a "leading smart operator of industry-city space in China".The year 2020 marks the end of the "13th Five-Year" plan and is a key year for the Company to make major adjustments to win

critical battles in implementing its reforms on all fronts. In the Reporting Period facing the abrupt COVID-19 and deep regulation

and control in real estate the Company vigorously explored ways to make breakthroughs in transformation and integrated and

renovated traditional businesses such as real estate property management and house asset operations. Besides it optimized and

reshaped its business segments so as to form four major business segments that is industry-city space development property

management services industrial ecosystem operation and main business ecosystem investment. SZPRD endeavored to further

consolidate and highlight its advantages of industry-city integration and the whole industry chain through expanding the main

business and making breakthroughs.

1. Industrial & urban space development

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

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

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

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

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

Urban Renewal Company Dongguan Company Xuzhou Company and Yangzhou Company strengthen capital operation via the

listing platform and make a reasonable layout of the city space development segment. In the Reporting Period SZPRD made

multiple efforts for this segment. For instance it steadily advanced the existing project development inside and outside Shenzhen

accelerated the sales of projects in Xuzhou Yangzhou and Dongguan and sped up the recovery of investment. Moreover it focused

on the development and construction of industry-city complexes and accelerated to create an integrated and co-existing model for the

development of boutique urban residences and high-end industry space.

2. Property management services

In the Reporting Period SZPRD deeply integrated its property management segment to establish a business layout featuring the

platform of ITC Property Management and "1+1>2" coordinated development. The total area of property management exceeded 24

million square meters. Over more than 30 years of development ITC Property Management has developed into a domestic top

branded property service provider of industrial parks. It has won the titles of "Top 100 National Property Management Enterprises"

and "Excellent Enterprise of Property Management of Industrial Park in China" for several years successively and has subsidiaries

including Shenzhen Guomaomei Life Service Co. Ltd. Shandong Shenguomao Real Estate Management and Chongqing

Shenguomao Real Estate Management and three joint ventures namely Shenshan Guomao Property Management Guomao Tongle

Property Management and Shouxihu Jingyue. It has built striking brand advantages and established property service projects all over

the country. Next the Company will take advantage of the brand ITC Property Management strive to integrate property

management resources inside and outside the system quickly expand channel space upgrade property management and significantly

enhance channel service quality. In addition it will combine industry chain and new requirements of community development and

earnestly utilize new technologies such as the Internet of Things (IoT) big data and artificial intelligence (AI) to develop a smart

service platform where production and life services can be scheduled in a unified manner.

3. Industrial ecosystem operation

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

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

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

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

rental ecosystem in the industrial park. The Company is expediting the stock taking and assessment of its properties in stock and

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

capability of property rental. Moreover the Company will gradually shift the focus of industrial ecosystem operation to sci-tech

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

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

4. Other business

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

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

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

establishment it has received more than 600 domestic and overseas state heads famous people and numerous domestic and overseas

guests with its reputation spreading all over the world. The revolving restaurant had its integrated renovation completed and was

reopened in 2020. The project supervision service is handled by the subordinated supervision company of the Group. The company

has the Grade A supervision qualification of building works of the Ministry of Housing and Urban-Rural Development (MOHURD).It was originally known as Shenzhen Property Engineering Management Department and takes part in the construction and

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

mainly serves for the development project of the Group.(II) Industry development stage and cyclic characteristics of the Company and industry position of the Company during the

Reporting Period

1. Real estate industry

During the Reporting Period China maintained the basic tone of real estate policy regulation and control unchanged including

"Houses are for living in not for speculating on." and "three stabilities" and further reinforced its financial regulation. In order to

fight against the COVID-19 pandemic the primary objectives for the first half of the year were "six stabilities" and "six guarantees".Local governments adopted more flexible policies commensurate with their local situations. Multiple regions released an

underpinning policy for the real estate market. Thus real estate sales remained high in the country. In the second half of the year

China constantly tightened its real estate financing policies issued new regulations for the investment of insurance funds and trusts in

real estate and strictly investigated the rule-violating transfer of funds from the bank to the real estate industry. Under such a policy

background China's real estate industry mainly presents the following characters:

(1) Real estate market remains resilient and has broad prospects

According to the National Bureau of Statistics in 2020 the sales area of national commercial housing was 1761 million square

meters with an increase of 2.6% year-on-year (YoY) while the sales amount was RMB17.36 trillion up by 8.7% YoY and higher

than the growth rate of 6.5% in 2019. The sales amount of residential housing reached RMB15.46 trillion rising by 10.8% YoY

representing nearly 90% of the total sales amount of commercial housing. However the sales amount of office buildings and houses

for business use dropped by 5.3% and 11.2% respectively from the same period last year. Prices of commercial housing generally

climbed and demonstrated apparent differences by region. The dramatic increase in the prices in core cities such as those in the

Yangtze River Delta and the Pearl River Delta drove the growth in surrounding areas. The real estate industry remained resilient

amid the pandemic.

(2) Financing regulation turned stricter than expectations. The capital chain of real estate enterprises became tight

The central monetary policies were loose so as to effectively promote the resumption of work and production at the beginning of the

year. Governments in multiple regions loosened the regulation and credit policies for real estate enterprises. Monetary policies have

resume tight since May as the adverse impact of the pandemic turned weaker and weaker and the sales of commercial housing and

land remained hot. The principle that "Houses are for living in not for speculating on." has been stressed again. The monitoring of

the flow of funds from the bank to real estate enterprises has been intensified. The "Three Red Lines" policy was introduced and

piloted in August to further regulate the financing of real estate enterprises. Financing in the real estate industry slowed down in 2020

amid stricter regulation over financing and growth in the scale of debts due. The financing scale fell. The overall financing cost

dropped slightly. In terms of structure self-raised funds and mortgage loans accounted for a higher proportion. Bond issuance

continued to grow in China while the scale of bonds overseas plunged drastically. Innovative products like ABS became increasingly

important. The peak of the repayment of overseas bonds brought some cash flow risks to real estate enterprises. The industry might

usher in a new cycle of supply-side reform.

(3) Land sales remained hot. Both sales volumes and prices increased

Real estate enterprises showed an increasing willingness to purchase land attributable to the loose monetary policies and

performance of the commercial housing market better than expectations. Besides local governments accelerated to promote land

sales. Both the supply and demand sides jointly pushed forward the increase in sales volumes and prices. In 2020 turnover of land

sales through tendering auctioning and listing was approximately RMB8.05 trillion rising by 18.8% YoY. 4925 million square

meters of planned building area were transferred with a YoY increase of 14.9%. The average sales price of land was

RMB1635/square meter throughout the year which climbed by 3.5% YoY. By regions tier-1 cities represented by those in the

Yangtze River Delta the Pearl River Delta and the Beijing-Tianjin-Hebei Region maintained high increases in both the sales area

and amount of land followed by tier-3 cities. Because of a high inventory the growth rates in tier-2 cities were weak and at the

downside of the cycle.

2. Industry of property management

With the acceleration of urbanization the upgrading of citizen's consumption level and the constant increase of stock property area

the Chinese property management industry enters a cycle of rapid progress as driven by favorable policies. At present the property

management industry is scattered in China. In other words its market concentration is not high. Large property management

enterprises will occupy a higher market share along with the progress of M&As of such enterprises. China's property management

industry mainly presents the following characteristics:

(1) Market prospects are broad. Revenue grows rapidly

According to the Evaluation Report of Comprehensive Strengths of Property Service Enterprises for 2020 in 2019 the total national

management area of the property management industry was 31 billion square meters with a YoY increase of 11%. The top 100

property management enterprises actively implemented diversified expansion strategies. Their number of projects under management

in 2019 averaged 212 up by 10.42% YoY while the area under management 42788300 square meters with a YoY increase of

15.08%. The market share of the top 100 property management enterprises was approximately 43.6%. The industry concentration

further increased. The gap among enterprises at different levels turned wider. In general the property service fee grew. In December

2020 the composite index of property service prices in 20 major cities reached 1070.32 up by 0.6% YoY. The property service

industry in China will enter a golden period of rapid development along with the increase in the existing and new properties and the

progress of new types of communities. The industry scale will hopefully surpass RMB2 trillion.

(2) The craze of listing among property management enterprises continues. Industry competition is becoming stronger

Property management enterprises have endeavored to get listed since 2018 thanks to the high valuation in the market. The year 2020

witnessed the listing of 17 such enterprises most of which were H-share-listed indicating an apparent Matthew Effect. Nevertheless

the stock prices on the first day of over half of the property management enterprises listed in 2020 were lower than their issue prices

which implied that the valuation of property management enterprises diverged from reality. Property management enterprises

accelerate to perform M&As and integration in order to cope with the increasingly fierce industry competition and expand scale and

business. Quality underlying assets are like "sweet pastries". Leading enterprises have raised the area under management to a new level

of 500 million square meters through M&As.

(3) The industry speeds up to transform and vigorously expand the Blue Ocean Market

The ten ministries and departments of China published the Notice on Strengthening and Improving Residential Property Management

in January 2021. The document encourages property service enterprises to proactively employ technologies such as the IoT cloud

computing big data blockchain and AI to build a smart property management service platform and explore the "property service +

life service" model. As property services are expanding to cover elderly and child care housekeeping culture health house agency

and express delivery and receipt multi-level and diversified residential and life demands of owners will be better satisfied. Furthermore

property management enterprises will hopefully expand the Blue Ocean Market and improve the profitability per unit area. The legal

status of the owners' committee of the community is specified upon the implementation of the Civil Code. The committee is becoming

stronger. Disputes over the rights to operations and earnings of public space are surging leading to pressure on the sustainable

development of the property management industry.

3. Industry position of the Company

SZPRD arises together with Shenzhen opening up and devotes to Shenzhen real estate and property management and other fields for

more than 30 years. Its comprehensive capacity and brand influence is getting stronger. Its industry position improves gradually. It

has won many honors and awards in the past years. During the Reporting Period at the 10th Grand Ceremony of Shenzhen Real

Estate held by the Shenzhen Real Estate Association the Group won the honor of "Brand Value Enterprise of Shenzhen Real Estate

Development Industry".

ITC Property Management was among the first batch of national qualified Level I enterprises of property management. During the

Reporting Period thanks to its continuous improvement in internal control steady progress in property management quality and

constant R&D of services and products matching customer requirements ITC Property Management was granted the titles of "Top

100 Enterprises of China's Property Management in 2020" and "Property Management Enterprises of China's Industrial Park in

2020". Additionally it was ranked 27th among China's top 100 property services for comprehensive competency up by six places

over 2019. It has been included in the Top 100 Enterprises of China's Property Service for five consecutive years since 2016. Besides

it was ranked 11th of the "Top 100 of Comprehensive Capacity of Shenzhen Property Service Enterprises in 2019".

3. Key Financial Information

(1) Key Financial Information of the Past Three Years

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

Reasons for the retrospective restatements:

Business combination involving entities under common control

Unit: RMB

2020 2019

2020-over-2019

change (%)

2018

Before Restated

Operating revenue 4104374646.02 3961669942.44 3.60% 2787240632.53 3376673249.90

Net profit attributable to

the listed company’s

shareholders

798572121.74 817805780.12 -2.35% 592723852.71 698050728.96

Net profit attributable to

the listed company’s

shareholders before

exceptional gains and

losses

788377322.39 695675201.19 13.33% 591362024.37 591362024.37

Net cash generated

from/used in operating

activities

385497782.12 939789565.96 -58.98% 1123594927.59 1231718056.18

Basic earnings per share

(RMB/share)

1.3399 1.3722 -2.35% 0.9945 1.1713

Diluted earnings per share

(RMB/share)

1.3399 1.3722 -2.35% 0.9945 1.1713

Weighted average return

on equity (%)

23.47% 20.46% 3.01% 18.94% 19.47%

31 December 2020 31 December 2019

Change of 31

December 2020

over 31

December 2019

(%)

31 December 2018

Before Restated

Total assets 12207356912.54 10772491740.53 13.32% 5820202137.54 7023354613.55

Equity attributable to the

listed company’s

shareholders

3727917440.03 3147949009.38 18.42% 3337949324.64 3872406104.67

(2) Key Financial Information by Quarter

Unit: RMB

Q1 Q2 Q3 Q4

Operating revenue 861546080.08 559531687.75 332619949.47 2350676928.72

Net profit attributable to the listed

company’s shareholders

152014318.10 59953416.66 -19555182.58 606159569.56

Net profit attributable to the listed

company’s shareholders before

exceptional gains and losses

152909860.77 57711762.61 -19618268.67 597373967.68

Net cash generated from/used in

operating activities

-609307576.52 -1013874562.38 1170415181.72 838264739.30

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

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

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

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

Holdings of Top 10 Shareholders

Unit: share

Number of

ordinary

shareholders at

the period-end

52587

Number of

ordinary

shareholders at

the month-end

prior to the

disclosure of this

Report

54313

Number of

preferred

shareholders

with resumed

voting rights at

the period-end

Number of preferred

shareholders with

resumed voting

rights at the

month-end prior to

the disclosure of this

Report

Top 10 shareholders

Name of shareholder

Nature of

shareholder

Shareholding

percentage

Total shares held

at the period-end

Restricted

shares held

Shares in pledge or

frozen

Status Shares

Shenzhen Investment Holdings

Co. Ltd.

State-owned legal

person

56.96% 339452527 3326

China Orient Asset Management

Co. Ltd.

State-owned legal

person

4.99% 29798300 0

Hong Kong Securities Clearing

Company Ltd.

Foreign legal person 0.31% 1874823 0

Shenzhen Duty-Free Commodity

Enterprises Co. Ltd.

Domestic

non-state-owned

legal person

0.29% 1730300 1730300

Duan Shaoteng

Domestic natural

person

0.27% 1618565 0

Yang Yaochu

Domestic natural

person

0.25% 1500384 0

Mai Furong

Domestic natural

person

0.18% 1049200 0

UBS AG Foreign legal person 0.17% 1036938 0

He Simo

Domestic natural

person

0.17% 1011750 0

China Construction Bank-Wanjia

Selected Mixed Type Securities

Investment Fund

Other 0.16% 982300 0

Related or acting-in-concert parties among the

shareholders above

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

the actual controlling shareholder of the Company. And the Company does

not know whether there are related parties or acting-in-concert parties

among the other 9 shareholders.Shareholders involved in securities margin trading (if

any)

N/A

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

□ Applicable √ Not applicable

No preferred shareholders in the Reporting Period.(3) Ownership and Control Relations between the Actual Controller and the Company

5. Corporate Bonds

Does the Company have any corporate bonds publicly offered on the stock exchange which were outstanding before the date of this

Report’s approval or were due but could not be redeemed in full?

No.Part III Operating Performance Discussion and Analysis

1. Business Overview of the Reporting Period

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

Companies Engaging in Real Estate.

(I) Industry review for the Reporting Period

1. Macro economic situation

The COVID-19 pandemic exerted a severe impact across the world in 2020 and became a systematic system with extremely great

uncertainties co-existing with trade frictions and geopolitics. It constituted a tremendous shock to the world economy. Currently

COVID-19 has been effectively controlled in China while the situation overseas is still not optimistic. In the financial field the

economic downturn has resulted in soaring risk aversion and frequent fluctuations in the global stock market. Rising unemployment

rates and decreasing income are inhibiting consumption. Central banks in all countries have taken loose monetary policies to promote

economic recovery. Global debts have hit a new high. Generally pandemic rebound hinders economic recovery in the United States and

Europe. Global inflation remains sluggish. It is predicted that the economy in 2020 would shrink by 3.5%. That said the severest

moment has passed. The world economy will hopefully enter a recovery cycle as the pandemic across the world becomes a new normal

the world political situation turns stable and trade protection measures are expected to decrease. The recovery progress is mainly

determined by the pandemic trend all over the world.In the context of the global economic depression China recorded a GDP of RMB101.6 trillion in 2020 with a YoY increase of 2.3%.It was the first time for China to surpassed RMB10 billion. Besides China was the only major economy in the world that achieved

positive growth in the year. Most regions across the country stopped work and production as influenced by the sudden outbreak of

COVID-19 at the beginning of the year. Consequently the first quarter (Q1) witnessed a YoY decrease of 6.8% in GDP. However as

the pandemic was gradually controlled and the resumption of work and production was orderly promoted China's economy steadily

recovered. The YoY growth rates of GDP in Q2 Q3 and Q4 were 3.2% 4.9% and 6.5% respectively. China took the lead in

controlling the pandemic while repeated outbreaks occurred overseas. Hence China had an outstanding performance in exports. The

export trade totaled RMB32.16 trillion in the year growing by 1.9% YoY. Specifically exports rose by 4% while imports declined

by 0.7%. Total retail sales of consumer goods amounted to RMB3.92 billion down by 3.9% YoY. Prices slowly recovered after a

slight decrease at the beginning of the year. The annual CPI climbed by 2.5%. Generally investment in fixed assets first declined and

then rose. The growth rates of investment in manufacturing and infrastructure construction gradually picked up. Investment in the

real estate industry continued to be resilient. From January to November investment in real estate development amounted to

RMB12949.2 billion with a YoY increase of 6.8%. The industry prospects kept recovering.

The year 2021 marks the start of the "14th Five-year Plan". The pandemic still exists. China is recovering its economy. Its fiscal and

monetary policies will resume neutral. Endogenous consumption and manufacturing investment will become the main engine of

economic growth. It is expected that China's economy will gradually return to normal in 2021 and make significant contributions to the

global economic recovery. In general the momentum of the steady economic progress in China will remain unchanged.

2. Policy environment of the industry

In 2020 the central government of China observed the basic tone that "Houses are for living in not for speculating on." in terms of real

estate regulation and control. It adopted loose monetary policies when the pandemic was the most severe in the first half of the year. As

a result the fund environment of the real estate industry was improved. Local governments implemented more flexible policies in line

with their actual situations. For the demand side priority was given to the talent attraction policy and loosened requirements for

household registration. For the supply side relevant market support policies were released. For instance Shanghai Hangzhou and

Nanjing relaxed the time limit for real estate enterprises to pay the land transfer fee. Fuzhou Huzhou and Tianjin allowed the delay of

the start and completion of projects. Xuzhou and Dongguan adjusted the pre-sale conditions for commercial housing. Nanchang Jinan

Wuxi and Xi'an reduced the regulatory requirements for funds. Xiamen Shenzhen and Guangzhou raised credit lines.In the second half of the year as the pandemic turned weaker and the real estate market enjoyed high popularity against the trend

regulation and control policies turned tighter. Financial regulation was constantly reinforced. In August the MOHURD and the

People's Bank of China (PBoC) held a symposium attended by key real estate enterprises in order to stress again that "Houses are for

living in not for speculating on." stabilize land prices house prices and expectations and maintain the continuity and stability of

regulation and control policies for the real estate industry. Fund monitoring and financing management rules were formulated for key

real estate enterprises at the symposium. Through the "Three Red Lines" new requirements were raised to change the traditional

financing model of real estate enterprises which would be beneficial to guide the benign development of the real estate industry.

Eight key tasks of the central government of China were proposed for 2021 at the Central Economic Work Conference held in

December 2020. Prominent problems about housing in major cities should be properly addressed. Housing problems are related to the

well-being of the people. Multiple policies should be adopted in line with the actual situation to push forward the steady and wholesome

progress of the real estate market. Great importance should be attached to the construction of security rental houses. The long-term

rental market should be strictly standardized. Moreover more land should be provided for the construction of rental houses. Real estate

enterprises should be encouraged to utilize collective land for construction and self-owned idle land to construct rental houses.Meanwhile the tax burden of rental houses should be reduced. The rental market should be remedied. The rent level should be

reasonably regulated and controlled.The PBoC and the China Banking and Insurance Regulatory Commission (CBIRC) jointly published a notice on December 31 2020 to

decide to formulate a policy for managing the concentration of real estate loans provided by financial institutions in the banking

industry. The policy is designated to facilitate market entities to form stable policy expectations and promote the sustainable

development of the real estate market.

3. Regional market layout

In 2020 the real estate market in Shenzhen led the national market in both supply and demand despite the pandemic and policy

regulation and control. In Q1 due to the impact of the pandemic the real estate market was basically stagnant. In Q2 as the pandemic

was gradually controlled and policies were relaxed a large amount of capital flew in to boost the real estate market. House prices surged

dramatically resulting in pain points such as hot housing speculation the rule-violating flow of funds and supply-demand imbalance.In view of this the Shenzhen Municipal Bureau of Housing and Urban-Rural Development issued eight measures on July 15 to regulate

and control the real estate market from eight aspects including identification of the house purchase qualification and time of household

registration adjustment of the policy for the restricted purchase of commercial houses and promotion of signing of the mortgage loan

contract online. The market quickly recovered upon the implementation of new policies. Second-hand houses were sold at a low price.The government relaxed the pre-sales policy followed by an increase in the supply of houses. Q4 marked the 40th anniversary of the

establishment of the Shenzhen Special Economic Zone. The construction of the Guangdong-Hong Kong-Macao Greater Bay Area and

the Demonstration Area of Socialism with Chinese Characteristics was promoted constantly. There were high expectations for the

long-term prospects of the real estate market. The enthusiasm of buyers ran high again.Generally in 2020 Shenzhen supplied 54000 sets of new houses. 4489000 square meters/45384 sets of new residential houses

were sold up by 20.5% and 19.8% YoY respectively. The transaction scale had reached a record high since 2016. Throughout the

year the sales rate on the opening day was higher than 60% setting a new record in the past three years. The average annual

transaction price of new houses was RMB53000/square meter which was stable with a slight decline. 95273 sets of second-hand

houses were sold in the year rising by 23.5% YoY. The Longgang Center Buji and Xixiang took the first three places in transaction

volumes. The average transaction price in the city was RMB66000/square meter higher than that in the same period last year.Throughout the year 24910 sets of commercial apartments were approved and sold with a total area of 1.47 million square meters.The two figures increased by 23.6% and 23.7% over the same period last year. Apartments demonstrated a stronger quasi-residential

property. In 2020 Shenzhen listed and transferred 96 plots of land including 34 plots of residential land with an accumulative land

transfer fee of RMB80 billion. Looking into 2021 the real estate market in Shenzhen will continue the basic tone that "Houses are

for living in not for speculating on." and raise house supply. Shenzhen will stabilize land prices house prices and expectations

drive the steady and wholesome progress of the real estate market and effectively prevent and mitigate risks in the market.(II) Business Review for the Company in 2020

In 2020 the Company successfully accomplished various objectives. For the year it recorded operating revenue of approximately

RMB4.1 billion and a gross profit of around RMB1.03 billion. In addition its total assets reached RMB12.2 billion hitting a record

high. All these remarkable results represented a perfect ending for the “13th Five-Year Plan” of the Company.

For the 13th Five Year the Company cumulatively recorded operating revenue a gross profit and a net profit of RMB16.82 billion

RMB4.33 billion and RMB3.19 billion respectively up 132% 114% and 112% compared to the 12th Five Year; and its total assets

and net assets as at the end of the period went up 179% and 80% respectively from five years ago. These data represented

considerable over-fulfillment of the goals set. During the 13th Five Year the Company adopted a sustained consistent and active

dividend policy taking into account both reasonable return to investors and the sustainability of the Company. The five-year period

saw a total dividend payout amount of RMB924 million (including the 2020 dividend payout plan).

1. A phased victory was achieved in fighting against the pandemic through unity of efforts

In the face of the sudden outbreak of the COVID-19 pandemic the Group immediately established an anti-pandemic leading group

accurately implemented all anti-pandemic tasks and spared no pains to arrange the resumption of work and production. No

suspicious or confirmed cases were identified among over 8000 employees of the Group. In addition the Group actively adopted the

policy requirement for rent reduction and exemption and joined hands with small- and medium-sized private enterprises to respond to

challenges. Approximately RMB38 million of rents were reduced and exempted benefiting nearly 700 tenants. The Group and

individuals donated over RMB2 million which fully reflected the mission and responsibility as a state-owned enterprise.

2. The Company stuck to the business philosophy of market orientation and achieved remarkable performances in the two

major segments

In the Reporting Period the Company hosted a real estate work meeting and introduced a whole-cycle development management

system. It specified the goal of "efficiency benefits and effects" of operations and management of real estate projects and strove to

manage the process in a planned coordinated and cooperative manner. Furthermore it followed the "117" specific implementation

path to holistically and constantly improve the operations and management of real estate projects. The Company planned and

precisely implemented strategies amid the pandemic. It delivered 100% of finely decorated Tower C of Golden Collar Holiday

Apartment in advance and successfully sold Phase II of Xuzhou out. Throughout the year the Company recorded revenue of

approximately RMB2.9 billion in real estate and a net profit of around RMB661 million. Project resources were expanded through

multiple channels such as tendering auctioning listing and cooperative development. Substantial progress was made in the

Integrated Industry-city Project of the Ecological Health Valley of Yangzhou Shouxihu the urban renewal project in the Fuyuan

Industry Park the Guangming Tangjia Project and the Baolu Project in the year.With respect to the property management segment the Company vigorously blazed a trail based on endogenous expansion and

M&As. In 2020 it accumulatively had 27 new projects with a total area of over 3 million square meters better than the annual

objective for endogenous growth. Moreover the Company explored non-conventional investment methods for the first time such as

overseas investment and private non-controlling investment so as to open a new path to cope with the fierce competition. First it

successfully expanded the overseas market by establishing a subsidiary in Vietnam. Besides it entered into an agreement with VCEP

to jointly create a national demonstration zone of the "the Belt and Road" initiative. The new area under property management in the

park was approximately 1.96 million square meters. Second new investment cooperation models were proposed. The three joint

ventures namely Shenzhen Guomao Tongle Property Management Co. Ltd. Shenshan Guomao Property Development and

Shouxihu Jingyue have grown gradually by taking advantage of the resources of their partners. Especially Shouxihu Jingyue won

key projects like Sanwan Scenic Spot of Yangzhou Canal Songjia City and Hua Du Hui. Its area under management was up to

around 3.7 million square meters. It is an effective example of the market-oriented expansion of the property management business.

3. The Company adhered to the idea that development is the top priority and addressed many prominent problems concerning

overall operations and development.

First it actively promoted the demolition of the Bangling Project held the opening ceremony in October and started the substantial

construction of Phase II. Second it assisted foreign trade groups in activating assets. The first batch of assets have been disposed of.Over RMB1.5 billion was realized. Third it actively supported the tax examination over the key and large enterprises specified by

the State Taxation Administration spared no effort to solve the historical problem of land costs in the Huangyuyuan Area and

basically eliminated the risk of a supplementary payment of increment tax on land value. Fourth it strongly supported shanty house

renovation projects of the government and completed the signing for the removal of tenants and house delivery of tenants on

Chuanbu Street. It is estimated that the Group will obtain an area of relocated property of approximately 14000 square meters by

2025. For other aspects a comprehensive agreement was signed for Yupinluanshan Garden project after nearly one decade. The

Fumin Complex was renovated and put into operation becoming the first rental house project for special talent of professional

lawyers. Effective measures have been adopted to promote Phase II of Fuchang upon negotiation with several parties. Basements

were constructed in the Reporting Period.

4. Internal reform was deepened. Vitality and power of quality development of the Group were significantly stimulated

The remuneration reform was earnestly promoted. The long-acting incentive and restraint plan for the first phase has been

implemented. The integration of business segments was coordinated. Incentive and performance assessment mechanisms such as the

remuneration reform and incremental sharing were comprehensively conducted in all subordinated companies from top to bottom. In

addition the Company orderly promoted the optimization of the organizational structure after the acquisition of TK Property and the

integration of property management and rental segments. The Project Management Department and the Industry Operation Office

were newly set up in the Headquarters. Shortcomings in operations were improved. A development platform was created for the four

major businesses. A platform business system with a reasonable structure and independent operations was developed. Furthermore

policies were revised as appropriate. Over 30 regulations and rules were revised including the Articles of Association to practically

improve corporate governance. In terms of other aspects a new stride was made in integrated financial management. Approximately

RMB1.6 billion new financing was added. Tendering and the determination of bid winners were strengthened. Cost control was

reinforced. Additionally the Company firmly upheld the concept of safe development and took multiple measures to ensure

production safety.(III) Land Bank

1. New additions to the land bank

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

2. Cumulative land bank

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

Floor area available for

development（0000 ㎡）

Yupinluanshan Garden

project

2.19 7.89 7.89

Baolu project 3.24 8.16 8.16

Land in Danshui Huiyang

District Huizhou City

1.77 6.20 6.20

Land in Hongqi Town

Haikou City

15.8 - -

Total 23 22.25 22.25

Note: The floor areas of the Yupinluanshan Garden project the Baolu project and the land in Danshui Huiyang District Huizhou

City are floor areas with plot ratio.

(IV) Development status of major projects

City/regi

Name of

project

Locatio

Usage

The

Compa

ny’s

interest

Time for

commen

cement

construct

ion

develo

ped

% that has

completed

construction

Site area

（㎡）

Planned

floor

area with

plot ratio

（㎡）

Floor

area

that

comple

ted

constru

ction in

the

Curren

Period

（㎡）

Cumulat

ive floor

area that

has

complete

construct

ion

（㎡）

Estimate

d total

investme

(RMB’0

000)

Cumulat

ive

investme

(RMB’0

000)

Shenzhe

Golden

Collar’s

Resort

apartmen

Futian

District

Resid

ential

100% 2014.03 100% 100% 12598 133800 0 183295 138311 108406

Shenzhe

Fuhui

Huayuan

Futian

District

Affor

dable

housin

100% 2018.12

Under

constru

ction

Concrete roof

completed for

the basements

in Section 1

and 2;

structure

completed for

-2/F of Section

4274 33430 0 0 90439 60072

Xuzhou

City

Banshan

Yujing

(Phase II)

Tongsha

District

Resid

ential

100% 2019.03

Under

constru

ction

Pre-acceptance

completed for

the main frame

31537 22795 0 0 23581 15997

Shenzhe

Guanlan

Bangling

Longhu

District

Resid

ential

comm

ercial

apart

ments

and

indust

rial

69% 2020.10

Under

constru

ction

75.88%

completed for

demolition

68300 433640 0 0 694150 330262

(V) Sales status of major projects

City/re

gion

Name

project

Location Usage

The

Comp

any’s

interes

Floor area

with plot

ratio （㎡）

Floor area

available

for sale

（㎡）

Cumulativ

pre-sold/s

old floor

area （㎡）

Floor

area

pre-sold/s

old in the

Current

Period

（㎡）

Pre-sale/sal

es revenue

generate in

the Current

Period

(RMB’000

Cumulativ

e settled

floor area

(㎡)

Floor area

settled in

the

Current

Period

（㎡）

Pre-sale/

sales

revenue

settled

in the

Current

Period

(RMB’0

000)

Shenz

hen

Golde

Collar’

Resort

apartm

ents

Intersecti

on of

Futian

South

Road and

Binhe

Road in

Futian

District

Residenti

al studio

apartmen

ts and

commerc

ial

100% 133800.6 125231.07 68323.44 33414.96 262382 64287.07 37184.94 274075

Dongg

uan

City

Songh

Langy

uan

Dalang

Town

Residenti

commerc

ial

100% 147139.96 140911 140911 0 0 145443 0 0

Shenz

hen

SZPR

D-Qia

nhai

Gang

wan

Garde

Intersecti

on of

Yueliang

wan

Boulevar

d and

Xinghai

Boulevar

d in

Nanshan

District

Residenti

100% 64625.13 63448.26 63448.26 0 0 63336.29 0 0

Xuzho

u City

Bansh

Yujing

(Phase

Huashan

Road

Tongshan

District

Xuzhou

City

Jiangsu

Province

Villa 100% 54589.12 85652.81 85652.81 0 0 85652.81 2331.54 1802.17

Xuzho

u City

Bansh

Yujing

(Phase

II)

Huashan

Road

Tongshan

District

Xuzhou

City

Jiangsu

Province

Residenti

(elevator

houses of

floors)

100% 22794.76 21720.72 21720.72 9992.97 12256.85 0 0 0

Yangz

hou

City

Hupan

Yujing

Phase

Intersecti

on of

Shouxihu

Road and

Hangou

Road

Residenti

al units

shops

apartmen

parking

garages

and lots

100% 36141.28 48870.98 42349.26 870.59 332.2 42215.85 944.67 575.03

Yangz

hou

City

Hupan

Yujing

Phase

Intersecti

on of

Shouxihu

Road and

Hangou

Road

Residenti

al units

shops

apartmen

parking

garages

and lots

100% 56935.75 73121.96 67523.37 1317.54 1678.47 64177.89 1060.9 1042.74

(VI) Rental status of major projects

Name of project

Locatio

Usage

The Company’s

working

interest

Rentable area

（㎡）

Cumulative

rented area

（㎡）

Average

occupancy rate

Xi Apartments

(Longyuan)

Shenzhe

Apartments

for

long-term

rental

100.00% 3967 3967 100.00%

Xi Apartments (Longhua)

Shenzhe

Apartments

for

long-term

rental

100.00% 1609 1609 100.00%

Xi Apartments (Xinhu)

Shenzhe

Apartments

for

long-term

rental

100.00% 1600 1600 100.00%

Food Court in the

International Trade Center

Shenzhe

Commercial 100.00% 4049 2645 65.00%

Fumin Complex

Shenzhe

Commercial

apartments

100.00% 6450 4576 71.00%

Tower A of Wenjindu Port

Building

Shenzhe

Office

building

75.00% 5884 5703 97.00%

Haiwai Lianyi Building

Shenzhe

Commercial

units and

offices

75.00% 9788 9788 100.00%

Anhua Building

Shenzhe

Offices 75.00% 1414 1414 100.00%

Training

Building/Dormitory

Shenzhe

Residential

units/offices

/commercial

units

75.00% 4244 4244 100.00%

Pengfu Building

Shenzhe

Offices 75.00% 6494 6494 100.00%

Jinfu Building

Shenzhe

Commercial 75.00% 1702 1702 100.00%

Jinfu Building

Shenzhe

Commercial 100.00% 568 568 100.00%

Fuxing Garden

Shenzhe

Residential/

commercial

75.00% 5877 5877 100.00%

Fuxing Garden

Shenzhe

Commercial 100.00% 1417 1417 100.00%

Plant area in Tangxia

Town Dongguan City

Donggu

an City

Plant 75.00% 22034 22034 100.00%

Pacific Business Building

Shenzhe

Commercial

units/offices

75.00% 3199 3199 100.00%

Pacific Business Building

Shenzhe

Commercial

units/offices

15.00% 14889 14718 99.00%

Kangti Building

Shenzhe

Commercial

units/offices

75.00% 2096 2096 100.00%

Kangti Building

Shenzhe

Commercial

units/offices

15.00% 1147 1147 100.00%

Lyuhua Building

Shenzhe

Commercial

and

residential

75.00% 6960 6578 94.51%

Shops on the ground floor

of Tower 48 in Lianhua

North Village

Shenzhe

Shops 75.00% 1000 1000 100.00%

Haonianhua Building

Shenzhe

Apartments

and

commercial

units

100.00% 1803 1774 98.00%

Haonianhua Building

Shenzhe

Apartments

and

commercial

units

75.00% 2278 2235 98.00%

Hostel 2 at Yuxin School

Shenzhe

Hostel 75.00% 3000 3000 100.00%

Kaifeng Garden in

Shangmeilin

Shenzhe

Residential 100.00% 1307 1084 83.00%

Fuyuan Industrial Zone

Shenzhe

Plant area 75.00% 47130 47130 100.00%

Tonglu Industrial Zone

Shenzhe

Plant area 100.00% 76886 73221 95.00%

Gonglu Building

Shenzhe

Commercial

/offices

75.00% 317 317 100.00%

Gonglu Building

Shenzhe

Offices 100.00% 89 89 100.00%

Jiangling Industrial Zone

Shenzhe

Plant area 75.00% 10397 10397 100.00%

Zone 21

Shenzhe

Commercial

/offices

75.00% 9514 9514 100.00%

Baoli Community

Shenzhe

Residential 75.00% 9020 9003 99.81%

Songgang Plant

Shenzhe

Plant area 75.00% 5700 5700 100.00%

Longbu Plant

Shenzhe

Plant area 75.00% 7471 7471 100.00%

Gonglu Building in

Huanggang

Shenzhe

Offices 75.00% 4600 4461 96.98%

Yuetong Complex

Shenzhe

Offices 75.00% 3044 3044 100.00%

(VII) Primary land development

□ Applicable √ Not applicable

(VIII) Financing channels

Financing channel

Ending balance of

financings

Financing cost

range/average

financing cost

Maturity structure

Within 1

year

1-2 years 2-3 years Over 3 years

Bank loans 3618800000.00 4%-6% 3000000.00 3615800000.00

Total 3618800000.00 4%-6% 3000000.00 3615800000.00

(IX) Development strategy and operating plan for the coming year

In regard to land reserves the Company will continue to expand its land reserves through market competition and capital operation in

2021. It will exert more efforts in this aspect and push forward the fast launch of projects. By property types residential projects will

be mainly distributed in the Guangdong-Hong Kong-Macao Greater Bay Area the Yangtze River Delta Metropolitan Area and the

areas with existing projects. Besides the Company will gradually pay attention to and expand its presence in key cities in the central

urban agglomeration centering on Wuhan the Chengdu-Chongqing Region in western China and the Beijing-Tianjin-Hebei Region.Urban renewal projects will primarily be launched in Shenzhen and the areas surrounding Shenzhen like Dongguan and Huizhou.The Company will gradually track such projects in Guangzhou. Most of the comprehensive industry-city projects will be located in

the Guangdong-Hong Kong-Macao Greater Bay Area the Yangtze River Delta central China centering on Wuhan and the

Chengdu-Chongqing Region in western China.

In regard to sales in 2021 the Company will constantly enhance the overall control over the general goal phased objectives

schedule and investment plan of all projects pay close attention to the whole sales of Tower A and the remaining houses of Tower C

of Golden Collar Holiday Apartment and fully promote the construction of Phases I and II of Guanlan Bangling. Furthermore it will

strive to sell all houses of Hupan Yujing out and complete and deliver Banshan Yujing Phase II in Xuzhou and endeavor to complete

the project setup of the Fuyuan Industry Park the land replacement of Baolu the capping of Phase II of Fuchang and the

construction of Yupin Luanshan.Please refer to “IX Prospects” in “Part IV Operating Performance Discussion and Analysis”.(X) Provision of guarantees for homebuyers on bank mortgages

√ Applicable □ Not applicable

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

on their bank mortgages. As at 31 December 2020 security deposits for such outstanding guarantees amounted to RMB1148647.30

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

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

higher than the trading prices the Company believes the risk associated with such guarantees is low.(XI) Joint investments by directors supervisors and senior management and the listed company (applicable for such

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

√ Applicable □ Not applicable

Name of

project

Type of investment

entity

Amount of

investment

(RMB’000

% of

investmen

t amount

As % of the

peak of the

project funds

Cumu

lative

inco

Disinvest

ment

Compatibility

of actual

investment

amount and

distributed

income

Urban

Renewal of

Bangling

Section at

Guanlan

Street

Mandatory investment

entities (including

directors and senior

management)

2647.00 66.18% N/A 0 None N/A

Voluntary investment

entities

1353.00 33.82% N/A 0 None N/A

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

please refer to the relevant announcements disclosed by the Company on www.cninfo.com.cn dated 9 November 2019.

2. Significant Change to Principal Activities in the Reporting Period

□ Yes √ No

3. Product Category Contributing over 10% of Principal Business Revenue or Profit

√ Applicable □ Not applicable

Unit: RMB

Product category

Operating

revenue

Operating profit

Gross profit

margin

YoY change in

operating revenue

(%)

YoY change in

operating profit

(%)

YoY change in

gross profit

margin (%)

Property

development

2895323736.80 922089696.02 86.59% 8.62% -10.56% 2.88%

Property

management

1070094746.33 74696857.92 14.74% -2.52% -0.56% -1.68%

4. Business Seasonality that Calls for Special Attention

□ Yes √ No

5. Significant YoY Changes in Operating Revenue Cost of Sales and Net Profit Attributable to the Listed

Company’s Ordinary Shareholders or Their Compositions

□ Applicable √ Not applicable

6. Delisting

□ Applicable √ Not applicable

7. Matters Related to Financial Reporting

(1) YoY Changes to Accounting Policies Accounting Estimates or Measurement Methods

√ Applicable □ Not applicable

The Company has adopted the provisions of Accounting Standard for Business Enterprises No. 14 –Revenue (CK [2017] No. 22)

since 1 January 2020. According to cumulative effects the Company adjusted retained earnings at the beginning of the year and other

relevant items in the financial statements without adjustment of any information of the comparable period. The impact of accounting

policy changes includes:

Contents of changes in accounting policies and reasons

thereof

Items and amounts of financial statements affected

Consideration paid by customers before the delivery of goods

is listed as “contract liabilities” in accordance with the newstandard for income and tax included is listed as “othercurrent liabilities”.In the consolidated balance sheet on 1 January 2020 “Advancesfrom customers” are RMB516988.76 “Contract liabilities” are

RMB690543580.95 and “Other current liabilities” are

RMB37125462.92;

In the balance sheet of the Company as the Parent on 1 January

2020 “Advances from customers” are RMB320469.53 “Contractliabilities” are RMB0.00 and “Other current liabilities” are

RMB0.00.

The right to receive consideration for goods or services that

have been transferred to customers (which depends on other

factors other than time) is listed as “contract assets” in

accordance with the new standard for income.In the consolidated balance sheet on 1 January 2020 “Contractassets” are RMB0.00;

In the balance sheet of the Company as the Parent on 1 Januray

2020 “Contract assets” are RMB0.00.

Incremental cost (such as sales commission) incurred for

contract acquisition is recognized as an asset as cost of

contract acquisition and listed as cost of contract acquisition

in “other current assets” or “other non-current assets” in

accordance with the new standard for income. However if the

amortization of asset is within one year it can be included in

the current profit and loss when it occurs.In the consolidated balance sheet on 1 January 2020 “Other currentassets” are RMB0.00 and “Other non-current assets” are RMB0.00;In the balance sheet of the Company as the Parent on 1 Januray

2020 “Other current assets” are RMB0.00 and “Other non-currentassets” are RMB0.00.The Company adopts simple treatment method to include sales commission with amortization period within one year in the current

profit and loss when it occurs. The amortization period of sales commission in 2019 is within one year.

(2) Retrospective Restatements due to Correction of Material Accounting Errors in the Reporting Period

□ Applicable √ Not applicable

No such cases.

(3) YoY Changes to the Scope of Consolidated Financial Statements

√ Applicable □ Not applicable

For the detailed changes to the scope of the Company’s consolidated statements of the Reporting Period see “Part XII FinancialStatements” VIII.

行情