ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
SHENZHEN PROPERTIES & RESOURCES
DEVELOPMENT (GROUP) LTD.ANNUALREPORT 2023
(Announcement No. 2024-06)
March 2024
1ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
ANNUALREPORT 2023
Part I Important Notes Table of Contents and Definitions
The Board of Directors (or the “Board”) the Supervisory Committee as well as the directors
supervisors and senior management of ShenZhen Properties & Resources Development
(Group) Ltd. (hereinafter referred to as the “Company”) hereby guarantee the factuality
accuracy and completeness of the contents of this Report and its summary and shall be
jointly and severally liable for any misrepresentations misleading statements or material
omissions therein.Liu Shengxiang the Company’s legal representative Cai Lili the Company’s head of
financial affairs and Cai Kelin head of the Company’s financial department (equivalent to
financial manager) hereby guarantee that the Financial Statements carried in this Report are
factual accurate and complete.All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.The Company has described in detail in this Report the possible risks facing it along with
countermeasures. Please refer to the section headed “Prospects” of “Part III ManagementDiscussion and Analysis” of this Report.The Board has approved a final dividend plan as follows: based on the share capital of
595979092 shares a cash dividend of RMB3.12 (tax inclusive) per 10 shares is to be
distributed to the shareholders with no bonus issue from either profit or capital reserves.This Report and its summary have been prepared in Chinese and translated into English.Should there be any discrepancies or misunderstandings between the two versions the
Chinese versions shall prevail.
2ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Table of Contents
Part I Important Notes Table of Contents and Defin... 2
Part II Corporate Information and Key Financial In... 6
Part III Management Discussion and Analysis..........12
Part IV Corporate Governance.........................42
Part V Environmental and Social Responsibility...... 67
Part VI Significant Events.......................... 70
Part VII Share Changes and Shareholder Information...84
Part VIII Preferred Shares...........................93
Part IX Bonds....................................... 94
Part X Financial Statements..........................95
3ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Documents Available for Reference
I. The financial statements with the signatures and stamps of the Company’s legal representative
head of financial affairs and head of the financial department;
II. The original of the Independent Auditor’s Report with the stamp of the CPA firm and the
signatures and stamps of the certified public accounts; and
III. The originals of all the Company’s documents and announcements disclosed to the public in the
Reporting Period.
4ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Definitions
Term Definition
The “Company” the “Group” “SZPRD” or “we” ShenZhen Properties & Resources Development (Group) Ltd. and itsconsolidated subsidiaries except where the context otherwise requires
SIHC Shenzhen Investment Holdings Co. Ltd.Huangcheng Real Estate Shenzhen Huangcheng Real Estate Co. Ltd.Dongguan Company Dongguan ITC Changsheng Real Estate Development Co. Ltd.Xuzhou Company SZPRD Xuzhou Dapeng Real Estate Development Co. Ltd.Yangzhou Company SZPRD Yangzhou Real Estate Development Co. Ltd.Wuhe Urban Renewal Shenzhen Wuhe Urban Renewal Co. Ltd.Rongyao Real Estate Shenzhen Rongyao Real Estate Development Co. Ltd.ITC Property Management Shenzhen International Trade Center Property Management Co. Ltd.ITC Technology Park Shenzhen ITC Technology Park Service Co. Ltd.Guomaomei Life Shenzhen Guomaomei Life Service Co. Ltd.Commercial Operation Company Shenzhen SZPRD Commercial Operation Co. Ltd.Guomao Catering Shenzhen Guomao Catering Co. Ltd.Supervision Company Shenzhen Property Engineering and Construction Supervision Co. Ltd.Wuhe Company Shenzhen Wuhe Industry Investment Development Co. Ltd.Shenzhen Property Management Shenzhen Property Management Co. Ltd.Foreign Trade Property Management Shenzhen Foreign Trade Property Management Co. Ltd.Shenfubao Property Development Shenzhen Shenfubao Property Development Co. Ltd.Hydropower Company Shenzhen Shenfubao Hydropower Municipal Service Co. Ltd.Security Service Company Shenzhen Free Trade Zone Security Service Co. Ltd.FMC Shenzhen Facility Management Community Technology Co. Ltd.RMB RMB’0000 RMB’00000000 Expressed in the Chinese currency of Renminbi expressed in tens ofthousands of Renminbi expressed in hundreds of millions of Renminbi
5ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Part II Corporate Information and Key Financial Information
I Corporate Information
Stock name PRD PRD-B Stock code 000011 200011
Previous stock name (if any) N/A
Stock exchange for stock
listing Shenzhen Stock Exchange
Company name in Chinese 深圳市物业发展(集团)股份有限公司
Abbr. 深物业集团
Company name in English (if
any) ShenZhen Properties & Resources Development (Group) Ltd.Abbr. (if any) SZPRD
Legal representative Liu Shengxiang
Registered address 39/F and 42/F International Trade Center Renmin South Road Luohu District ShenzhenGuangdong Province P.R.China
Zip code 518014
Past changes of registered
address N/A
Office address 16/F 20/F 39/F and 42/F International Trade Center Renmin South Road Luohu DistrictShenzhen Guangdong Province P.R.China
Zip code 518014
Company website www.szwuye.com.cn
Email address 000011touzizhe@szwuye.com.cn
II Contact Information
Board Secretary Securities Representative
Name Zhang Gejian Ding Minghua and Chen Qianying
20/F International Trade Center Renmin South 39/F International Trade Center Renmin South Road
Address Road Luohu District Shenzhen Guangdong Luohu District Shenzhen Guangdong Province
Province P.R.China P.R.China
Tel. 0755-82211020 0755-82211020
Fax 0755-82210610、82212043 0755-82210610、82212043
Email address 000011touzizhe@szwuye.com.cn 000011touzizhe@szwuye.com.cn
III Media for Information Disclosure and Place where this Report Is Lodged
Stock exchange website where this Report is disclosed The Shenzhen Stock Exchange: http://www.szse.cn
For A-stock investors: Securities Times
Media and website where this Report is disclosed For B-stock investors: Ta Kung Pao (HK)
www.cninfo.com.cn
Place where this Report is lodged Board Office 39/F International Trade Center Renmin South Road LuohuDistrict Shenzhen Guangdong Province P.R.China
6ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
IV Change to Company Registered Information
Unified social credit code No change
Change to principal activity of the
Company since going public (if any) No change
On 29 September 2004 the State-Owned Assets Supervision and Administration
Commission of Shenzhen Municipality (“SASAC Shenzhen”) decided to incorporate
Shenzhen Investment Holdings Co. Ltd. (“SIHC”) to include Shenzhen Investment
Management Co. Ltd. (“SIM” the former controlling shareholder of the Company)
and Shenzhen Construction Investment Holdings Corporation (“SCIHC”). SCIHC and
SIM hold 323796324 and 56582573 shares respectively in the Company
Every change of controlling shareholder representing a combined stake of 63.82%.since incorporation (if any) On 19 October 2018 the Company was notified by its actual controlling shareholder
SIHC that it had received the Confirmation of Securities Transfer Registration from
China Securities Depository and Clearing Co. Ltd. (Shenzhen branch) marking the
completion of the equity transfer to SIHC. As such SIHC has become the controlling
shareholder of the Company.The controlling shareholder remained unchanged during the Reporting Period.V Other Information
The independent audit firm hired by the Company:
Name Baker Tilly China Certified Public Accountants LLP
16A B C D E and F as well as 18A1 D2 E and F2 SZMD Finance Center 9 Pengcheng
Office address First Road Fuxin Community Lotus Street Futian District Shenzhen Guangdong
Province China
Accountants writing signatures Chen Zihan and Zhong Qinfang
The independent sponsor hired by the Company to exercise constant supervision over the Company in the Reporting Period:
□ Applicable□ Not applicable
The independent financial advisor hired by the Company to exercise constant supervision over the Company in the Reporting
Period:
□ Applicable□ Not applicable
VI Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.□Yes □ No
Reason for retrospective restatement:
Change in accounting policy
2022 2023-over-2022
2023 change (%)
2021
Before Restated Restated Before Restated
Operating 2965117025. 3708669046. 3708669046. 4911120528. 4911120528.revenue (RMB) -20.05%04 85 85 33 33
Net profit
attributable to 1025380909. 1027457653.464014492.11 537664698.69 537291574.13 -13.64%
the listed 03 96
7ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
company’s
shareholders
(RMB)
Net profit
attributable to
the listed
company’s
shareholders - 390440612.64 390067488.08 -144.19% 983778096.90 985854841.83
before 172360115.90
exceptional
gains and losses
(RMB)
Net cash
generated - -
from/used in -
operating 105233103.86 105233103.86 -350.96% 1828979752. 1828979752.264092984.33
activities 45 45
(RMB)
Basic earnings
per share 0.7786 0.9022 0.9015 -13.63% 1.7205 1.7240
(RMB/share)
Diluted
earnings per
share 0.7786 0.9022 0.9015 -13.63% 1.7205 1.7240
(RMB/share)
Weighted
average return 10.26% 12.37% 12.36% -2.10% 24.49% 25.19%
on equity (%)
Change of 31
December 2023
31 December 31 December 2022 over 31 31 December 2021
2023 December 2022
(%)
Before Restated Restated Before Restated
Total assets 16988062068 15800287610 15824788371 14835846843 14859964860
(RMB) 7.35%.09 .40 .56 .78 .88
Equity
attributable to
the listed 4661810328. 4412555547. 4414259168. 4590052057. 4614170074.company’s 5.61%75 97 34 75 85
shareholders
(RMB)
Reason for change in accounting policy and correction of accounting error:
The relevant financial statement items of 2022 and 2023 were retrospectively restated as per the Accounting Standard No. 16 for
Business Enterprises and the Accounting Standard No. 18—Income Tax for Business Enterprises.Indicate by tick mark whether the lower of the net profit attributable to the listed company’s shareholders before and after
exceptional gains and losses was negative for the last three accounting years and the latest independent auditor’s report indicated
that there was uncertainty about the Company’s ability to continue as a going concern.□ Yes□ No
Indicate by tick mark whether the lower of the net profit attributable to the listed company’s shareholders before and after
exceptional gains and losses was negative.□Yes □ No
8ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Item 2023 2022 Remark
Business revenue unrelated to
the principal operations was
excluded mainly income from
Operating revenue (RMB) 2965117025.04 3708669046.85 compensation for temporary
relocation for the Chuanbu
Street scaffolding project and
consultancy income
Business revenue unrelated to
the principal operations was
excluded mainly income from
Amount deducted from
17825350.04 91555827.12 compensation for temporary
operating revenue (RMB)
relocation for the Chuanbu
Street scaffolding project and
consultancy income
Business revenue unrelated to
the principal operations was
excluded mainly income from
Operating revenue after
2947291675.00 3617113219.73 compensation for temporary
deduction (RMB)
relocation for the Chuanbu
Street scaffolding project and
consultancy income
VII Accounting Data Differences under China’s Accounting Standards for Business
Enterprises (CAS) and International Financial Reporting Standards (IFRS) and Foreign
Accounting Standards
1. Net Profit and Equity under CAS and IFRS
□Applicable□ Not applicable
No difference for the Reporting Period.
2. Net Profit and Equity under CAS and Foreign Accounting Standards
□Applicable□ Not applicable
No difference for the Reporting Period.VIII Key Financial Information by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 411469619.15 1493995013.70 521861580.85 537790811.34
Net profit attributable
to the listed company’s 13216750.95 207686693.68 10448055.65 232662991.83
shareholders
Net profit attributable
to the listed company’s
shareholders before 13335100.35 207509610.79 11244393.64 -404449220.68
exceptional gains and
losses
9ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Net cash generated
from/used in operating -419149918.25 -160871739.90 -359617394.77 676245131.34
activities
Indicate by tick mark whether any of the quarterly financial data in the table above or their summations differs materially from
what have been disclosed in the Company’s quarterly or interim reports.□ Yes□ No
IX Exceptional Gains and Losses
□Applicable □ Not applicable
Unit: RMB
Item 2023 2022 2021 Note
Receipt of
Gain or loss on disposal of non-current assets
(inclusive of impairment allowance write- payment for702127250.52 175644543.02 -62170.29
offs) equity
transfer
Government grants recognised in current
profit or loss (exclusive of those that are
closely related to the Company's normal
business operations and given in accordance 7802977.21 10633227.34 23923655.59
with defined criteria and in compliance with
government policies and have a continuing
impact on the Company's profit or loss)
Gain or loss on fair-value changes in financial
assets and liabilities held by a non-financial
enterprise as well as on disposal of financial
1300.91
assets and liabilities (exclusive of the
effective portion of hedges that arise in the
Company’s ordinary course of business)
Capital occupation charges on a non-financial
enterprise that are charged to current profit or 132289.35
loss
Current profit or loss on subsidiaries obtained
in business combinations involving
9596148.1621251005.70
enterprises under common control from the
period-beginning to combination dates net
Gain or loss on contingencies that are
unrelated to the Company's normal business 70578.79
operations
Non-operating income and expense other than
-2773489.322448235.992915682.88
the above
Over-
Other gains and losses that meet the deduction in
5684844.32277896.27169262.03
definition of exceptional gain/loss VAT
calculation
Less: Income tax effects 76182752.47 51525180.31 6749597.21
Non-controlling interests effects (net of
284222.2554953.47-154973.43
tax)
Total 636374608.01 147224086.05 41602812.13 --
Particulars about other gains and losses that meet the definition of exceptional gain/loss:
□Applicable □ Not applicable
10ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
The preferential policy in relation to over-deduction in VAT calculation expired on 31 December 2023. This income does not
continue to impact the Company’s gains and losses.No such cases for the Reporting Period.Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the Explanatory Announcement
No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss Items:
□ Applicable□ Not applicable
No such cases for the Reporting Period.
11ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Part III Management Discussion and Analysis
I Industry Overview for the Reporting Period
(I) Macro-economic situation and industry development status
The international and domestic situations in 2023 were fraught with uncertainties with the economy in a sluggish recovery and the
traditional real estate market under sustained pressure. In order to mitigate risks in the real estate sector there has been a gradual
shift in policy towards a strategy of "supporting and leveraging" since the Meeting of the Political Bureau of the CPC Central
Committee in July which acknowledged the new dynamics in the supply-demand relationship in the Chinese real estate market.During the Reporting Period central policy measures transitioned from stability to relaxation with a specific focus on promoting
the ''Three Major Projects" of urban village transformation affordable housing and dual-use infrastructure construction. The
implementation of financial policies to alleviate supply-side pressures persisted resulting in a relief of funding constraints for real
estate developers. Policies aimed at supporting residents in buying homes such as reduced down payments lowered interest rates
and measures allowing property recognition without mortgage verification were introduced to stabilize demand on the consumer
side. Continuous optimization of housing policies by government departments at all levels has been instrumental in ensuring the
stable functioning of the real estate market thereby creating a more accommodating policy environment.The year unfolded with the sales market generally mired in torpor as sales volume development investment and land
supply and demand all dwindled. According to the data from the National Bureau of Statistics the sales area of commercial
housing throughout 2023 was 1117.35 million square meters nationwide a decrease of 8.5% from the previous year. Furthermore
sales revenue plummeted to RMB11662.2 billion down by 6.5%. The adjustment trend in the new housing market remained
unchanged with the sustainability of policy effects in core cities proving insufficient. As the market shifts towards trading volume
for price the secondary housing market in key cities outperformed that of new housing. In the period from January to November
there was a year-on-year decrease of about 5% in the transaction area of new residential properties in the top 100 cities
representing the lowest absolute level for the same period since 2016.The total investment of the top 100 investors hit a new low with no significant improvement observed in overall investment
sentiment. Real estate investment in 2023 followed the declining trend seen in 2022 with national real estate development
investment amounting to RMB11091.3 billion reflecting a 9.6% decrease from the previous year. The decrease in investment
scale indicates a gradual reduction in incremental funds in the real estate sector leading to diminishing industry attractiveness and
the gradual exit of existing stock real estate enterprises. The housing new construction area in 2023 amounted to 953.76 million
square meters representing a 20.4% decline. Real estate development companies completed construction on a total area of
8383.64 million square meters of houses throughout the year reflecting a 7.2% decline from the previous year. The housing
completion area reached 998.31 million square meters representing a 17.0% increase.Land acquisition decelerates as supply and demand decrease to a near-decade low. Since the end of last year onwards the
land market has continued to experience a downturn prompting local governments to exercise greater caution in land supply with
enterprises showing a notable shrinkage in their land acquisition intentions on the demand side. In 2023 the total supply and
demand scale of residential land in 300 cities nationwide experienced a year-on-year decline of over 20%. This included the
release of 610 million square meters down by 22.4% compared to the previous year and the transaction of 480 million square
meters showing a 23.1% decrease. This absolute scale was the lowest in the last ten years. The total land transaction amount
nationwide was RMB3750.4 billion representing an 18% year-on-year decrease compared to the same period last year The
majority of land transactions were conducted at base prices resulting in transaction amounts maintaining substantial disparities
compared to the same period last year. The premium rate remains relatively low with an annual premium rate of only 4.5%.Thereinto in 2023 the transaction amount in Shenzhen decreased by 62% with the total transaction amount decreasing by over
RMB55 billion compared to the previous year.
12ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Policy Support Fails to Drive Significant Financial Improvement National real estate development investment has been on
a continuous decline since April 2022 with the rate of decrease expanding overall in 2023. Real estate enterprises have
witnessed a year-on-year downward trend in their available funds. At the end of October the Central Financial Work Conference
emphasized the importance of "encouraging positive interaction between finance and real estate enhancing regulatory systems and
fund supervision for real estate enterprises refining macro-prudential management of real estate finance and providing fair
treatment to different types of real estate enterprises to address their financing requirements. Despite the acceleration of mortgage
lending by banks the uncertainty of economic recovery has negatively impacted homebuyers' confidence resulting in individual
mortgage loans amounting to RMB1.9 trillion which represents a year-on-year decrease of 7.6%. Real estate companies' sales
repayments have been negatively affected to varying degrees. The funds in place for real estate development enterprises
throughout the year reached RMB12745.9 billion representing a 13.6% year-on-year decrease according to data from the
National Bureau of Statistics. The central government and various ministries and commissions have continuously released
stabilization signals since 2013. While the credit environment has marginally improved it will take time for this improvement to
be transmitted to the market end. The arrival of mortgage loans and development loans still requires time.(II) Policy environment of the industry
In 2023 the central government introduced the concept of the "Three Major Projects" marking a shift in real estate industry
policies from the mantra of "housing is for living not for speculation" to focusing on "risk prevention and resolution tailored
policies for different cities meeting essential and improvement needs and fostering innovative models" with a strong emphasis
on promoting the stable and healthy development of the real estate market. Policies such as reducing down payments lowering
interest rates recognizing the house not the loan and extending tax refunds for slippage property replacements were successively
implemented to address demand-side issues. On the supply side relief measures like the extension of the "16 Financial
Regulations" the "Three No-Lower-Than" policy and the creation of a "White List" for real estate enterprises were successively
proposed. In summary there are three core aspects of the real estate industry policy in 2023: reinforcing financial support on the
supply side to alleviate the financial pressure of real estate enterprises; intensifying support for personal credit to alleviate
residents' mortgage pressure and boost housing demand release; and accelerating the relaxation of local regulatory policies to
uplift market sentiment and bolster the confidence of homebuyers.The demand-side is primarily focused on land and financial policies. (1) The policy of "Recognizing the House Not the Loan"
has been implemented. The implementation of the policy of "Recognizing the House Not the Loan" was confirmed on August
25th through a joint announcement by the Ministry of Housing and Urban-Rural Development the People's Bank of China and
the China Banking and Insurance Regulatory Commission. This policy benefits individuals seeking property replacements and
those purchasing homes in different locations with at least 63 provinces and cities including major metropolitan areas like Beijing
Shanghai Guangzhou and Shenzhen have publicly declared their adherence to the policy; (2) The lowering of the minimum
down payment ratio has opened up space for reduced down payments in restricted purchase cities. On August 31st the People's
Bank of China and the China Banking and Insurance Regulatory Commission issued a notice regarding the adjustment and
optimization of differentiated credit policies which standardized the minimum down payment ratio for housing commercial loans
at 20% and set the minimum down payment ratio for the second home at a minimum of 30% no longer distinguishing between
regions with or without purchase restrictions; (3) The hurdle rate of first-home mortgages underwent dynamic regulation and the
minimum interest rate on second-home mortgages was reduced. On January 5th the People's Bank of China and the China
Banking and Insurance Regulatory Commission established a dynamic adjustment mechanism for the minimum interest rate on
first-home mortgages. Following this nearly a hundred cities have lowered the hurdle rate of first-home mortgages with over 20
cities abolishing the minimum limit. On August 31st the Central Bank and the Banking Regulatory Commission announced the
adjustment of the hurdle rate of second-home commercial loans from LPR+60BP to LPR+20BP; (4) The reduction of interest rates
on existing housing loans is implemented to alleviate residents' debt pressure. On August 31st the Central Bank and the Banking
Regulatory Commission issued guidance for commercial banks to lower the interest rates on existing first-home mortgages; (5)
Reserve ratios and interest rates are decreased. On March 27th and September 15th there were comprehensive reductions of 0.25
13ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
percentage points in reserve ratios. The 1-year LPR was lowered by 10 basis points to 3.55% on June 20th and the LPR rates for
periods over 5 years were decreased by 10 basis points to 4.2%. On August 20th the 1-year LPR saw a unilateral reduction of 10
basis points to 3.45%.The supply side focused on land and financial control. (1) In terms of land the land supply plan for 2023 was reduced by 10%
with an actual completion rate of around 40%. The completion rate of the 2023 land supply plan is relatively low. Local
governments are actively optimizing and adjusting land auction rules and the structure of land supply to attract real estate
developers to participate in bidding. Leading real estate companies continue to heavily invest in premium land parcels with their
advantages expected to grow further. The trend of "the strong getting stronger" is likely to continue while local urban investment
entities may scale back their land acquisition efforts. Private enterprises are adopting a cautious investment approach necessitating
an extended recovery period; (2) In terms of policies the Central Political Bureau meeting proposed to "adapt to the new situation
where significant changes have occurred in the supply and demand relationship of China's real estate market timely adjust and
optimize real estate policies and implement differentiated policies based on local conditions to effectively utilize the policy
toolbox. In July the Central Bank extended the application deadline for the "16 Financial Measures". In August the China
Securities Regulatory Commission (CSRC) clarified that listed real estate enterprises were not subject to restrictions related to
falling below the issue price falling below net asset value or incurring losses for refinancing. In October the Central Financial
Work Conference convened highlighting the need to enhance regulatory systems and fund supervision for real estate enterprises
refine macro-prudential management of real estate finance and provide fair treatment to different types of real estate enterprises to
address their financing requirements. In November three departments held a symposium for financial institutions proposing the
concept of "Three No-Lower-Than" and it is reported that regulators were also devising a "white list of 50 real estate enterprises".Afterward banks such as the Industrial and Commercial Bank of China Agricultural Bank of China China Construction Bank
and Bank of Communications convened meetings with real estate enterprises to listen to their financing demands and affirmed
their commitment to increasing support for real estate financing. In 2023 provinces and cities nationwide loosened policies
increased efforts and sped up the process with 273 provinces and cities implementing 622 policy relaxations and almost all
restrictive administrative measures were removed. The regulation of the real estate market continues to improve and upgrade with
the pace and intensity of policy tightening significantly increasing since the second half of the year. In anticipation of 2024
central-level real estate policies are expected to focus on three main areas: first providing financial support for the construction of
the "Three Major Projects" and using this as a catalyst to drive the development of a new model for real estate growth; second
implementing supply-side financial support measures like the "Three No-Lower-Than"; and third reducing housing transaction
taxes and fees to stabilize demand and thereby the market. As the tide of real estate market correction surges onward one cannot
help but ponder the scope for policy refinement in the top-tier cities. Additionally it is not unreasonable to anticipate a more
streamlined financing apparatus for real estate enterprises.(III) Regional market landscape
From the perspective of regional markets Shenzhen's economy held steadfast in its fortitude in 2023 with real estate policies
focusing on "stabilizing land prices stabilizing house prices stabilizing expectations supporting both rigid and improved housing
demand and promoting the stable development of the real estate market". Several relaxed and favorable policies and housing
credit policies were introduced. In the first half of the year policies related to affordable housing were released abolishing
previous housing types such as affordable commercial housing and talent housing and introducing new housing types like
affordable rental housing and shared ownership housing. The original target of constructing and securing affordable housing
during the "14th Five-Year Plan" period set at 540000 units was adjusted to no fewer than 740000 units. In the second half of
the year a notice was issued to optimize the criteria for determining the number of housing units eligible for personal housing
loans implementing policies such as "recognizing the house not the loan" proposing an increase in the housing provident fund
withdrawal limit for renting and adjusting and optimizing the hurdle rate for personal housing loans. These policies aim to
stimulate demand from essential and upgrading customers driving the release of housing demand amid shifting market
expectations.
14ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
(IV) The situation and tasks facing the Company
At the end of 2023 the National Conference on Housing and Urban-Rural Construction was held in Beijing setting the tone for
the development of the real estate industry in 2024: adhering to the principle of seeking progress while maintaining stability
promoting stability through progress and prioritizing development before demolition; implementing differentiated policies based
on local conditions adopting tailored strategies for each city to achieve a balanced relationship between supply and demand in the
real estate market. From the perspective of Shenzhen Property Group there are certain challenges in both internal and external
environments. The planned sequential market introduction of all ongoing projects emphasizes sales revenue as the primary focus
for the year. Accelerating fund retrieval enforcing strict expenditure control safeguarding the security and stability of cash flow
and preempting liquidity risks are crucial for achieving sound business operations. By advancing in-depth the high-quality
development pattern in the property management sector is accelerated. By using multiple measures simultaneously the overall
promotion of the transformation and upgrading of commercial operations is coordinated. Through proactive action and
deterministic work to address uncertain market conditions the maintenance of strategic focus and the vigorous pursuit of
comprehensive completion of annual tasks and objectives are aimed for with the goal of driving the group's various businesses to
a new level with higher positioning and greater accomplishments.(V) Industry position of the Company
SZPRD arose together with Shenzhen's reform and opening up and has devoted itself to real estate property management and
other fields for nearly four decades. It has achieved gradual improvements in its comprehensive capacity brand influence and
industry position and won many honors and awards over the years. During the Reporting Period the Company won the titles of
"Top 20 in Comprehensive Strength in the Shenzhen Real Estate Development Industry in 2023 Integrity (High-Quality)
Enterprise in the Shenzhen Real Estate Development Industry and 2023 Shenzhen Top 500 Enterprises" with a ranking of 224th.ITC Property Management a subsidiary of the Company has once again been recognized with awards such as "2023 Top 100
China Property Service Enterprises with Comprehensive Strength" "2023 Top 100 China Property Service Enterprises in Brand
Value" and "2023 Leading Enterprise in Property Services for Chinese Industrial Parks". The Shenzhen International Trade
Center Building was listed in the first group of Shenzhen historical buildings announced by the People's Government of Shenzhen
Municipality. The historical exhibition of Shenzhen International Trade Center was chosen for inclusion in the list of significant
historical sites of reform and opening up and the Shenzhen demonstration base for social science popularization in 2023. These
awards and honors demonstrated the Company's comprehensive strength and reflected the high recognition of the Company's
comprehensive strength by the industry customers and government departments.During the Reporting Period faced with the changing landscape of the real estate industry the Company has set its sights on the
target and is pushing to achieve all annual business targets by the end of the year. It takes proactive measures to adapt and flexibly
address market challenges head-on. The Company is using a combination of approaches to enhance the market-oriented
transformation of commercial operations. The smooth development of the group's businesses is safeguarded through active
measures in safety production and maintaining stability in petitions and appeals.II Principal Activity of the Company in the Reporting Period
(I) Core Business Overview
Established in 1982 the Company was originally known as "Luohu Engineering and Construction Headquarters" and renamed
"Shenzhen Municipal Property Development Corporation" in August 1985. The Company was determined as the second batch of
pilot units for joint-stock reform of state-owned enterprises in 1988. Approved by the municipal government the Company renamed
to ShenZhen Properties & Resources Development (Group) Ltd. in 1990. The stock of the group company (stock name: SZPRD A/B;
stock code: 000011 200011) was officially listed in Shenzhen Stock Exchange in March 1992.The Company contracted and built Shenzhen International Trade Center Building as Party A and created planned and organized the
world-famous "Shenzhen Speed". The building was the place where Chairman Deng Xiaoping gave talks in his inspection to the
15ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
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. SZPRD employees have manifested the enterprise spirit of "going ahead and
reforming" and centered on the functional positioning as state assets of "serving national economic and social development the city
the industry and the people". The Company has adhered to the original aspiration and striven ahead to be a pioneer. Therefore it has
made remarkable achievements in development speed and quality. So far the Company has grown into a large comprehensive
industrial group from the project company that built Shenzhen International Trade Center Building. In the new era the Company
sizes up the situation seizes the momentum and forges ahead toward the goal and vision of becoming a "leading smart operator of
industry-city space in China".
1. Industrial & urban space development
In terms of the space development segment the Company is specialized in developing the residence the hi-end apartment the office
building and the industrial park and has developed a batch of brand projects including Shenzhen International Trade Center
Building Huanggang Port Tian'an International Building Qianhai Gangwan Garden and Golden Collar Holiday. Based on its
present real estate development business the Company will improve its existing portfolio and plan for new businesses. It will engage
a number of subsidiaries in property development and urban renewals including Huangcheng Real Estate Rongyao Real Estate and
Wuhe Urban Renewal strengthen capital operation via the listing platform and make a reasonable layout of the city space
development segment. In the Reporting Period the Group steadily advanced the development projects inside and outside Shenzhen
accelerated the sales of projects and sped up cash inflow. Moreover it focused on the development and construction of industry-city
complexes and accelerated to create an integrated and co-existing model for the development of boutique urban residences and high-
end industry space.
2. Property management services
The Company's property management segment takes ITC Property Management as its platform. As China’s first batch of first-class
qualified enterprises in property management ITC Property Management after more than 30 years of development has become a
domestic first-class property service provider with diversified business capabilities and technological strength and has been awarded
"Top 100 National Property Management Enterprises" and "Excellent Enterprise of Property Management in China's Industrial
Parks" for many years in a row. The projects under its management are all over the country and its business radiates to various
regions in China such as South China Southwest China East China and North China as well as the China-Vietnam Cooperation
Zone in Vietnam. The Company's existing business has covered industrial parks cultural tourism scenic spots government agencies
rail transportation housing hospitals schools hotels and other various business models and is planning to develop the business of
grassroots social governance. The Company collaborated with the government to create a safe harmonious civilized and orderly
urban environment basically forming a pattern of integrated development of multiple business models. There are more than 20
subsidiaries under ITC Property Management and with the functional departments of the headquarters as the platform it has actively
built three centers of "market empowerment and supervision" and formed three business centers and profit centers of specialized
business model companies specialized companies and companies in other regions so as to continuously and effectively realize the
new pattern of coordinated development of "1+1>2". During the Reporting Period ITC Property Management completed the receipt
of management rights and integrated management of five newly-acquired enterprises and its market expansion reached a record high.The net increase in managed properties was approximately eight million meters and the total managed properties have exceeded 40
million square meters. Notably the scale of operational management for high-end industrial parks is predicted to retain its exalted
status among domestic industrial park operations.
3. Industrial ecosystem operation
With respect to the industrial ecosystem operation segment the Company gave full play to its foundation in the three basic industries
namely real estate development property management and leasing and the advantage of the whole industry chain focused on the
two major strategies of “value-added operation of existing assets” and “light-asset operation output” and deepened internal and
external strategic cooperation. It is committed to creating a closed loop of the whole industrial ecosystem covering project
16ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
development services park operation services and supporting rental operations and keeping improving the space service and rental
ecosystem in the industrial park. A unique and mature business development model has been put in place with the capability and
experience of the whole chain of planning dismantling construction control business invitation operation and on-site management
with respect to various assets. The Company is expediting the stock taking and assessment of its properties in stock and strengthening
the management over them. In the future it will gradually expand the scope of leasing and raise the development capability of
property rental. Moreover the Company gradually shifts the focus of industrial ecosystem operation to sci-tech parks provides
supporting services covering the whole value chain such as the import of industrial ecosystem project development services and
park operation services and serves the role of "space service provider" centering on sci-tech parks.
4. Other business
In the Reporting Period the Company's businesses also included catering service and project supervision service. The catering
service is operated by Shenzhen Guomao Catering Co. Ltd. Guomao Catering Co. Ltd. established in 1986 became famous at
home and abroad as it was the place where President Deng Xiaoping gave talks during his inspection to the south in 1992. Since its
establishment it has received more than 600 country leaders famous people and numerous domestic and overseas guests with its
reputation spreading all over the world. The project supervision service is handled by the subordinated supervision company of the
Group. The company has the Grade A supervision qualification of building works of the Ministry of Housing and Urban-Rural
Development (MOHURD). It was originally known as Shenzhen Property Engineering Management Department and takes part in
the construction and management work of Shenzhen International Trade Center Building. It is a witness of the whole process of
"Shenzhen speed" and mainly serves for the development project of the Group.(II) Business review for the Company in 2023
2023 is a critical year bridging the past and the future of the "14th Five-Year Plan". In the face of the ever-changing international
environment and complex economic conditions the Company closely focused on the implementation of the key work plans
formulated at the beginning of the year emphasized accelerating project progress maximized capital efficiency empowered
platforms and ensured the effectiveness of indicators in order to fully achieve the annual tasks and goals. The real estate
enterprises responded to circumstances by flexibly adjusting their sales strategy accurately seizing favorable opportunities to
initiate pre-sales and refer remaining units and setting the stage for achieving annual operational targets. The property
management companies increased their overall profitability and core competitiveness through methods like organizational
restructuring system procedures reengineering and optimized talent allocation. Aimed at expediting its transformation and
upgrade the commercial operations companies continued to enhance its operational management model ensuring a steady and
healthy growth trajectory across its various business segments. As at the end of the Reporting Period the total assets of the Group
stood at approximately RMB16.988 billion. During the year the Group recorded operating revenue of approximately RMB2.97
billion and a gross profit of approximately RMB707 million successfully achieving the major economic indicators for the year.First the industry-city space development segment took proactive measures and adopted flexible strategies to address
market challenges. The real estate business recorded operating revenue of RMB1235 million accounting for 41.64% of the total
operating revenue. During the Reporting Period the simultaneous release of four major new real estate projects: the Jinling Project
the Guangming Yutang Shangfu Project the Lanhu Shidai Project and the Humen Sea Bay Project occurred. The marketing
management actively responded to market changes exercised prudent judgment closely monitored market dynamics in key areas
and seized market opportunities to drive sales and turnover. The Group's various business lines such as cost design and
engineering continuously strengthened node targets and resource protection coordination while adhering to market-oriented
management concepts and highly coordinated cooperation. Comprehensive planning and project construction were carried out in
advance including project scheme design bidding and procurement target cost determination and on-site construction. Each
project in progress was efficiently and orderly developed with the refined management system for the entire real estate project
development process taking shape. Projects such as Shenyang Digital Town Haikou Hongqi County Fuyuan Industrial Park and
Huiyang Danshui have also made significant breakthrough progress.
17ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Second the property management segment pushed forward with external outreach and internal coordination and worked
in tandem to intensify market expansion efforts. The operating revenue from property management was RMB1.58 billion
throughout the year accounting for 53.24 % of the total operating revenue increasing its share. During the Reporting Period ITC
Property Management actively engaged in expanding property management projects and drove external expansion and internal
coordination in parallel. The addition of 70 new expansion projects has increased the managed area to over 40 million square
meters. Collaborative partnerships with Shenzhen Bay Super Headquarters Base Urban Construction Group and other entities
were further deepened resulting in the undertaking of multiple high-quality projects within the system such as the Shenzhen-
Hong Kong Innovation River Open Center and Dongguan Qingxi Park. ITC Property Management has once again secured awards
such as "2023 Top 100 Chinese Property Service Enterprises in Comprehensive Strength" "2023 Top 100 China Property Service
Enterprises in Brand Value" and "2023 Leading Enterprise in Property Services for Chinese Industrial Parks" continuously
enhancing brand value and reputation. ITC Technology Park actively pursued initiatives in exploring pre-introduction services and
community services expanded new business formats like the Longhua District Smart Agricultural Market Supervision Platform
and enhanced management experience in smart platform operation and front-end consulting services. Furthermore measures such
as enriching and adjusting the team members of the platform company optimizing the internal organizational structure and
formulating 25 key tasks for high-quality development are being taken to further enhance the core competitiveness setting the
direction for high-quality development of the property management segment in the "14th Five-Year Plan" period.Third multiple measures were taken at the same time and core operating capabilities were cultivated for industrial
ecological operation and other segments. The operating revenue from property rental throughout the year was RMB150 million
accounting for 5.12% of the total operating revenue. In recent years the Company has taken various steps to accelerate its
transformation and upgrading explored the establishment of an incremental sharing mechanism and intensified project expansion.Besides core operating capabilities were cultivated in multiple paths and the transformation of the current simple leasing business
mode to a commercial operation mode was promoted thereby boosting the development and growth of the industrial ecological
operation segment. During the Reporting Period ITC Property Management through proactive initiatives operated in a self-
operated mode firmly progressing in creating the group's independent commercial brand and exploring market-oriented
commercial operations. The industrial operation segment cultivated core operational capabilities through multiple paths such as
improving asset quality and efficiency and exploring the establishment of incremental sharing mechanisms. With quality
improvement and efficiency enhancement as the core efforts are accelerated to promote the transformation and upgrade of
existing assets and revitalize their utilization. In terms of industrial investment attraction there are plans to expand the industrial
alliance system during the year and actively drive project investment attraction efforts.(III) Production safety in 2023
In 2023 the Company continued to thoroughly implement General Secretary Xi Jinping's series of important expositions and
important instructions on production safety and emergency management co-ordinate development and safety guard the red line of
production safety and urge all its business entities to take on responsibility in this respect. The Company's annual production
safety situation remained stable and orderly with no production safety liability accidents involving serious injuries to personnel or
above or significant economic losses and successfully completed the Company's production safety objectives for 2023.Firstly the Company comprehensively conveyed and implemented the safety work deployment of higher authorities. The Group
and its affiliated enterprises have held party committees and safety committees for nearly 200 times to listen to reports on work
safety study and solve and comprehensively deploy major matters of work safety. Secondly the Company established rules and
regulations and adhered to system leadership. The Company has revised and released the "Compilation of Safety Production and
Occupational Health Management System of SZPRD" and the "Award and Punishment System for Safety Production of SZPRD"
and other rules and regulations to further improve the safety management system. Thirdly the Company carried out in-depth
18ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
investigation of hidden safety hazards and special rectification actions for major hidden accidents. The leadership team of the
Group and its affiliated enterprises conducted 892 person-time in-depth inspections and found a total of 25922 hidden safety
hazards of which 28768 have been rectified with a rectification completion rate of 96%. Fourthly the Company fostered a safety
culture and raised safety awareness. The Group and its subsidiaries organised 2085 training sessions with 36100 participants.Fifthly the Company carried out emergency drills and strengthened its emergency rescue capability. The Group and its
subsidiaries organised 985 emergency drills of various types with a total of 30255 participants. Through real drills and exercises
we tested the implementability of the enterprise emergency plan and further enhanced the level of standardisation of the enterprise
personnel's operation and emergency rescue capability. Sixthly during the year a number of subsidiaries were awarded honours
for safety production; three subsidiaries were awarded 4A level through standardisation certificates for safety standardisation; a
number of projects in the real estate sector were awarded provincial "Double Excellence" projects; and the SZPRD-Chuanqishan
project was awarded the Shenzhen Safe and Civilised Advanced Community.Cumulative land bank:
Floor area available for
Name of project/area Site area（0000㎡） Floor area（0000㎡） development（0000㎡）
Land in Danshui Huiyang
District Huizhou City 1.77 4.25 4.25
Land in Hongqi Town
Haikou City 15.80 - -
Total 17.57 4.25 4.25
Development status of major projects:
Floor
area Cumu
that lative
Planned compl floor
The Time for floor eted
area Estimat Cumula
Com area constr that ed total tive
City/r Name of Loca pany commenc % % that has Site area hasUsage ement of develo completed with uction investm investmegion project tion ’s constructi ped construction （㎡） plot in the
compl ent ent
inter on ratio Curre
eted (RMB’ (RMB’est ） nt
constr 0000) 0000)
（㎡Period uction
（（㎡㎡））
Futia Constr
Shenz Fuhuihuay n Residen 100 uction 4352
hen uan Distr tial % 2018.12 compl 100% 4274 33430 0 2 91133 77396
ict eted
The main
Hum body has been
Dongg
Sea Bay en Residen 100. Under roofed and
uan 2022.03 constr electrical and 51687 113713 0 0 321759 258097
Garden Tow tial 00%
City uction mechanical
n works are
closing out
The main
Guan body has been
gmin roofed fine
Shenz Yutang Residen 100. Under
g 2022.03 constr decoration is 14901 81960 0 0 265868 197318
hen Shangfu tial 00% going on and
Distr uction the project has
ict been opened
for pre-sale
Long Residen
Shenz Lanhu Under The main
hua tial 69% 2020.10 constr body of Lot 68298 433640 0 0 840000 507001
hen Shidai
Distr industri uction 02# has
19ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
ict al reached 46-50
comme floors the
rcial main body ofLot 03# has
and reached the 8th
apartme floor the main
nt body of Lot
04# has
reached the
20th floor and
Lot 06# has
reached the -1
to 6 floors
and Phase I is
working on
the earthwork
and pile
foundation.Residen
Ping Phase I Lot D
Shenyang tial
Yangz shan Under is undergoing
Digital industri 67% 2023.03 constr above ground 231612 370258 0 0 252911 77307
hou Villa
Town al and uction main
ge
office construction
Sales status of major projects:
Pre-
Pre- sale/saFloor
Floor sale/sale lesarea
Cumulat area
The s Cumulat
revenu
settled
Floor area Floor area ive pre- pre- e
City/ Comp revenue ive in theName of with plot available sold/sol sold/solregio Location Usage any’s generate settled
settled
Curre
n project
ratio for sale d floor d in the in theinteres in the floor nt） Curret （㎡ （㎡）
area Current Current area Period（㎡） Period Period ( nt㎡) （㎡） (RMB’0 Period（㎡
000) ） (RMB’0000
)
Resident
Golden Intersection of ial
Shen Collar’s Futian South studio
zhen Resort Road and apartme 100% 133800.6 125231.07
121190.
942121.1519322.8
123127.4122.19160
Binhe Road in nts and 44 93 .94apartments Futian District commer
cial
Resident
ial units
Yang Hupan Intersection of shops
zhou Yujing Shouxihu apartme 100% 36141.28 48870.98 45121.4 2097.68 2075.98 45121.4 2097. 1904.City Phase I Road and nts 9 9 68 57Hangou Road parking
garages
and lots
Resident
ial units
Yang Hupan Intersection of shops
zhou Yujing Shouxihu apartmeRoad and nts 100% 56935.75 73121.96
70203.0
9153.07
62.7970183.9153.057.61
City Phase II 26 8 7Hangou Road parking
garages
and lots
Dong Resident
guan Songhu
Dalang Town
Langyuan Dongguan
ial
commer 100% 147139.96 157911.56
149758.149757.341.7
City City 71
408359844089
cial
20ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
kinderga
rten and
parking
space
Resident
Northwest of ial
the junction of (includi
Songbai Road ng
and housing
Shen Yutang Changgang for 100% 89143.00 78373.92 31189.5 31189.5 8772 0 0 0
zhen Shangfu Second Road talents) 2 2 8.55
Yutang Street commer
Guangming cial and
District commun
Shenzhen ity food
market
Rental status of major projects:
The Company’s Rentable area Cumulative rentedName of project Location Usage Averageworking interest （㎡） area （㎡） occupancy rate
Xi Apartments Shenzhen Apartments for long-(Longyuan) term rental 100.00% 3967.05 3967.05 100%
Xi Apartments Shenzhen Apartments for long-(Longhua) term rental 100.00% 1609.42 1609.42 100%
Xi Apartments Apartments for long-
(Xinhu) Shenzhen term rental 100.00% 1589.60 1119.7 70.44%
Food Court in
the International Shenzhen Commercial 100.00% 4152.47 1586.1 38.20%
Trade Center
Fumin Complex Shenzhen Commercialapartments 100.00% 5900.19 4693.27 79.54%
Tower A of
Wenjindu Port Shenzhen Office building 75.00% 5904.3 5644.3 95.6%
Building
Haiwai Lianyi Shenzhen Commercial units andBuilding offices 75.00% 6635.08 6375.08 96.08＆
Anhua Building Shenzhen Offices 75.00% 1414 1414 100%
Pengfu Building Shenzhen Offices 75.00% 6494 6494 100%
Jinfu Building ShenzhenShenzhen Commercial 75.00% 1652.7 1535.7 92.92%
Jinfu Building ShenzhenShenzhen Commercial 100.00% 567.56 567.56 100%
Fuxing Garden Shenzhen Residential/commercial 75.00% 5787.22 5787.22 100%
Fuxing Garden Shenzhen Commercial 100.00% 1417.15 1417.15 100%
Plant area in
Tangxia Town Dongguan City Plant 75.00% 21135.12 21135.12 100%
Dongguan City
Pacific Business Commercial
Building Shenzhen units/offices 75.00% 3149.03 2856.16 90.70%
Pacific Business
Building Shenzhen
Commercial
units/offices 15.00% 14888.76 13691.95 91.96%
Kangti Building Shenzhen Commercialunits/offices 75.00% 2095.87 1925.47 91.87%
Kangti Building Shenzhen Commercialunits/offices 15.00% 1146.81 1146.81 100%
21ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Lyuhua Building Shenzhen Commercial andresidential 75.00% 7106.95 6671.74 93.88%
Shops on the
ground floor of
Tower 48 in Shenzhen Shops 75.00% 1000.34 1000.34 100%
Lianhua North
Village
Haonianhua
Building Shenzhen
Apartments and
commercial units 100.00% 1802.61 1760.53 97.67%
Haonianhua Apartments and
Building Shenzhen commercial units 75.00% 2277.9 2277.90 100%
Kaifeng Garden
in Shangmeilin Shenzhen Residential 100.00% 1302.65 824.42 63.29%
Fuyuan
Industrial Zone Shenzhen Plant area 75.00% 47131.4 47131.4 100%
Tonglu Industrial
Zone Shenzhen Plant area 100.00% 74845.08 73088.67 97.65%
Jiangling
Industrial Zone Shenzhen Plant area 75.00% 10396.64 10396.64 100%
Zone 21 Shenzhen Commercial/offices 75.00% 9514.3 9438.7 99.21%
Baoli
Community Shenzhen Residential 75.00% 9020.07 8044.39 89.18%
Songgang Plant Shenzhen Plant area 75.00% 5700 5700 100%
Longbu Plant Shenzhen Plant area 75.00% 7471.36 7471.36 100%
Gonglu Building
in Huanggang Shenzhen Offices 75.00% 4599.72 4401.88 95.69%
Yuetong
Complex Shenzhen Offices 75.00% 3044 3044 100%
Department
Store Plaza Shenzhen Offices 33% 12751.15 12751.15 100%
Southern
Securities Shenzhen Offices 33% 8809.8 6590.22 74.81%
Building
Building 409
Sangda Industrial Shenzhen Plant area 33% 3309.2 3309.2 100%
Zone
Mianshui Studio
Apartment Shenzhen Apartment 33.00% 3440.12 3440.12 100%
Xiangfu Building Shenzhen Commercial 33.00% 3109.4 3109.4 100%
Primary land development:
□Applicable□ Not applicable
Financing channels:
Unit: RMB
Financing Ending balance Financing cost Maturity structure
channel of financings range/averagefinancing cost Within 1 year 1-2 years 2-3 years Over 3 years
Bank loans 4700312585. 3299753332.4%-6% 409353332.40 227821043.47 763384877.60
8740
Non-bank loans 400000000.00 4%-6% 400000.00 400000.00 400000.00 398800000.00
5100312585.3300153332.1162184877.
Total 4%-6% 409753332.40 228221043.47
874060
Development strategy and operating plan for the coming year:
22ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
In 2024 the international and domestic situation was fraught with uncertainties the economy was in a period of slow recovery
and the traditional property market continued to be under pressure. SZPRD will continue to actively search for the strategic
breakthrough direction comprehensively connect with the major strategic orientation of the state-owned asset system and firmly
grasp the core processes of stock asset value management and industrial ecological operation services. Relying on the principle of
"expanding the main business and making breakthroughs" efforts will be doubled to develop four major businesses i.e. industry-
city space development property management services industrial ecological operation and main business ecosystem investment
and guide high-quality development with a new development philosophy.In terms of land reserve the important window period of the real estate market is seized to achieve expansion and capacity
expansion through market competition and capital operations. The focus is on potential economic development areas such as the
Guangdong-Hong Kong-Macao Greater Bay Area and the Yangtze River Delta. Projects are actively facilitated through various
means such as market-oriented bidding and auctioning industrial land acquisition urban renewal and project cooperation.Simultaneously capital operations are prudently carried out to accelerate market mergers and acquisitions enabling the Company
to obtain more resources for sustainable development. In terms of project development the guiding principle of "seeking progress
while maintaining stability promoting stability through progress stability with initiative and effectiveness in progress" is adhered
to. The focus is tightly centered on precise and continuous efforts in the four aspects of "stabilizing cash flow controlling costs
expanding capacity and strengthening foundations". The development and construction of the Yutang Shangfu project Lanhu
Shidai project Sea Bay Garden project and Shenyang Digital Town project are prudently advanced. Efforts are made to
continuously enhance development capabilities strengthen quality control deepen lean management further expand and
strengthen the overall advantages of the group's real estate sector and actively promote stability in production and operations with
positive results. In terms of sales and inventory turnover the market window period is seized marketing touchpoints are controlled
and full efforts are made to advance residential sales in the Yutang Shangfu project Lanhu Shidai project Sea Bay Garden project
and Shenyang Digital Town project with the aim of achieving the annual sales targets for the final phase of historical projects.The above business plan and business objectives do not represent the listed Company’s profit forecast for 2024. Whether it can be
achieved depends on various factors including changes in market conditions and the effort made by the management team.Investors must pay special attention to that because there exists great uncertainty.Provision of guarantees for homebuyers on bank mortgages:
□Applicable □ Not applicable
1) 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 2023 security deposits for such outstanding guarantees amounted to
RMB1133604.61 which will be returned upon the expiry of the guarantees.
2) 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 2023 outstanding guarantees amounted to RMB211064285.20 which
will be returned upon the expiry of the guarantees.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
Compatibility
Amount of
Name of Type of investment investment % of As % of the Cumulativ Disinv
of actual
investment
project entity (RMB’00 investment peak of the estme
00) amount project funds
e income nt amount anddistributed
income
23ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Urban Mandatory investment
Renewal of entities (including
Bangling directors and senior 2647.00 66.18% N/A None None N/A
Section at management)
Guanlan Voluntary investment
Street entities 1353.00 33.82% N/A None 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.III Core Competitiveness Analysis
Advantages in brand and cultural accumulation: SZPRD a state-owned enterprise in Shenzhen has forged an unparalleled legacy
of pioneering development over the past four decades. The company has crafted a diversified development pattern with real estate
development at the forefront accompanied by urban renewal property management asset operation and industrial investment. The
brand value and comprehensive strength of "Shenzhen Property" imbued with the spirit of reform and opening up in international
trade have garnered significant market recognition. Born from the World Trade Building the company has flourished through reform
and opening up coexisting and flourishing alongside the miraculous city of Shenzhen. The corporate culture of "daring to be the first
and striving for transformation" intermingles with the "pioneering spirit" of surmounting challenges providing guidance in
advancing the remarkable progress of SZPRD from "Shenzhen speed" to "Shenzhen quality."
Market-oriented advantages: In accordance with the market-oriented pace of a small change in a year and a big change in three
years the Group continues to innovate institutional mechanisms deepen internal reforms and actively benchmark with industry
models for market-oriented operation which significantly stimulates the vitality and momentum of the Group's high-quality
development. In recent years the Lanhu Times project pioneered the cooperation between state-owned enterprises and private
enterprises in developing urban renewal projects marking the first fully market-oriented urban renewal project in the history of the
Group and took the lead in implementing the follow-on investment system for urban renewal projects in the city's state-owned
capital system. With regard to the property management segment the Company actively explores projects outside Guangdong
Province and enhances market-oriented expansion which has effectively increased the Company’s competitiveness in China’s
property management market. The Company has simultaneously established a multi-level incentive and restraint mechanism
including follow-on investment and long-term incentives allocating resources selecting talents and assessing rewards and
punishments according to the market-oriented approach.Whole industry chain advantage: Over the years the Group has formed the advantage of the whole industry chain in the whole
process of project acquisition development and construction investment and sales leasing management and property management
especially in the area of high-end park basic services and property management quality services which has formed obvious
segmentation advantages and forged the core competitive ability of the Company.City-industry integration advantage: The Company's space development division endeavors to develop a abundance of business
types encompassing residential high-end apartments office buildings and industrial parks. From the earliest urban complex of
Shenzhen International Trade Center Building Huanggang Port area development to the development and operation of large city-
industry complex project of Lanhu Times project the Group's advantages of city-industry complex development products have
been highlighted and with the implementation of a series of urban renewal projects and industrial projects the advantages of city-
industry complex will be further consolidated and enhanced.Advantages as a holding subsidiary of a Fortune Global 500 company: Shenzhen Investment Holdings Co. Ltd. the
controlling shareholder of the Company has been committed to building a world-leading state-owned capital investment and
operation company and a financial holding group. It has now developed into a state-owned capital investment company focusing
on fintech technology parks infant industries and high-end services. In 2023 it ranked 391st in the Fortune Global 500 with
operating revenue of approximately RMB290 billion. Relying on the controlling shareholder's advantages in the whole industrial
24ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
chain of technology parks the Company carries out active transformation and upgrading and concentrates on the development and
construction of industry-city complexes heralding a broader development prospect.IV Core Business Analysis
1. Overview
See contents under the heading “II Principal Activity of the Company in the Reporting Period” above in “Management Discussionand Analysis”.
2. Revenue and Cost Analysis
(1) Breakdown of Operating Revenue
Unit: RMB
20232022
As % of total As % of total Change (%)
Operating revenue operating revenue Operating revenue operating revenue
(%)(%)
Total 2965117025.04 100% 3708669046.85 100% -20.05%
By operating division
Property
development 1234537188.62 41.64% 1913674526.31 51.60% -35.49%
Property
management 1578719323.98 53.24% 1666961878.32 44.95% -5.29%
Property rental 151860512.44 5.12% 128032642.22 3.45% 18.61%
By product category
Property
development 1234537188.62 41.64% 1913674526.31 51.60% -35.49%
Property
management 1578719323.98 53.24% 1666961878.32 44.95% -5.29%
Property rental 151860512.44 5.12% 128032642.22 3.45% 18.61%
By operating segment
Shenzhen 2569038060.46 86.64% 3122667234.12 84.20% -17.73%
Other 396078964.58 13.36% 586001812.73 15.80% -32.41%
By marketing model
(2) Operating Division Product Category Operating Segment or Marketing Model Contributing over
10% of Operating Revenue or Operating Profit
□Applicable □ Not applicable
Unit: RMB
Operating YoY change in YoY change in YoY change in
revenue Cost of sales
Gross profit
margin operating cost of sales gross profitrevenue (%) (%) margin (%)
By operating division
Property
development 1234537188.6 818496053.38 33.70% -35.49% 88.84% -43.65%
25ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
2
Property 1578719323.9 1316777091.3
management 16.59% -5.29% -8.65% 3.07%8 2
By product category
Property 1234537188.6
development 818496053.38 33.70% -35.49% 88.84% -43.65%2
Property 1578719323.9 1316777091.3
management 16.59% -5.29% -8.65% 3.07%8 2
By operating segment
By marketing model
Core business data of the prior year restated according to the changed statistical caliber for the Reporting Period:
□ Applicable□ Not applicable
(3) Whether Revenue from Physical Sales Is Higher than Service Revenue
□ Yes□ No
(4) Execution Progress of Major Signed Sales and Purchase Contracts in the Reporting Period
□Applicable□ Not applicable
(5) Breakdown of Cost of Sales
By operating division
Unit: RMB
Operating 2023 2022
division Item As % of total cost As % of total Change (%)Cost of sales of sales (%) Cost of sales cost of sales (%)
Property
developmen 818496053.38 36.65% 433443568.87 21.90% 14.75%
t
Property
management 1316777091.32 58.95% 1441477771.44 72.85% -13.90%
Property
rental 98252237.79 4.40% 103856280.91 5.25% -0.85%
Note:
N/A
(6) Changes in the Scope of Consolidated Financial Statements for the Reporting Period
□Yes □ No
See “IX Changes to the Consolidation Scope” in “Part X Financial Statements” in this Report.
26ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
(7) Major Changes to the Business Scope or Product or Service Range in the Reporting Period
□Applicable□ Not applicable
(8) Major Customers and Suppliers
Major customers:
Total sales to top five customers (RMB) 1166098513.59
Total sales to top five customers as % of total sales of the
Reporting Period (%) 39.32%
Total sales to related parties among top five customers as % of
total sales of the Reporting Period (%) 4.01%
Information about top five customers:
No. Customer Sales revenue contributed for As % of total sales revenuethe Reporting Period (RMB) (%)
1 Corporation 1 977069378.47 32.95%
2 Corporation 2 119090512.11 4.01%
3 Corporation 3 29159908.84 0.98%
4 Corporation 4 22426604.08 0.76%
5 Corporation 5 18352110.09 0.62%
Total -- 1166098513.59 39.32%
Other information about major customers:
□Applicable □ Not applicable
Corporation 2 and the Company are under common control.Major suppliers:
Total purchases from top five suppliers (RMB) 988434400.69
Total purchases from top five suppliers as % of total purchases
of the Reporting Period (%) 61.79%
Total purchases from related parties among top five suppliers
as % of total purchases of the Reporting Period (%) 3.91%
Information about top five suppliers:
No. Supplier Purchase in the ReportingPeriod (RMB) As % of total purchases (%)
China Construction Third Bureau First
1826670146.6351.68%
Engineering Co. Ltd.Shenzhen Bay Technology
262480975.103.91%
Development Co. Ltd.Yangzhou Yong'an Electrical
345838602.492.87%
Installation Co. Ltd.Shenzhen Jinggong Architectural
426909176.471.68%
Decoration Group Co. Ltd.Shenzhen Shekou Security Service Co.
526535500.001.66%
Ltd.Total -- 988434400.69 61.79%
Other information about major suppliers:
□Applicable □ Not applicable
27ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Shenzhen Bay Technology Development Co. Ltd. is a wholly-owned subsidiary of the Company’s controlling shareholder
Shenzhen Investment Holdings Co. Ltd. Except for that none of the other four suppliers is a related party of the Company.
3. Expense
Unit: RMB
2023 2022 Change (%) Reason for any significantchange
Selling expenses 46757158.57 53541997.78 -12.67% Decrease in commissions paidfor sales agents
Administrative
expenses 310578375.15 329991655.74 -5.88%
Finance costs 43846029.30 50571183.83 -13.30% Increase in interest expenses
R&D expenses Increase in remuneration4133484.37 3244129.11 27.41%
expenses
4. R&D Investments
□Applicable □ Not applicable
Expected
Major R&D program Purpose Progress Objectives impact on the
Company
This product offers a WYSIWYG
(What You See Is What You Get)
Develop new modules to assist visual design tool and a wide
non-professional development range of visualization component
engineers in quickly achieving templates to assist non-
To increase
Smart Park visually appealing and professional development
product
Visualization Display practical big data visualization engineers in quickly achieving
Delivered superiority and
Platform [referred to effects and meet various usage visually appealing and practical
market
as: K-BI] demands in scenarios such as big data visualization effects and
competitiveness
daily supervision of personnel meet various usage demands in
and objects decision support scenarios such as daily
and command dispatch. supervision of personnel and
objects decision support and
command dispatch.By adopting a "cloud-edge-end"
architecture and integrating
technologies such as IoT big
data GIS and 3D visualization
Develop an information energy data is collected
system to assist real estate and monitored processed and
facility owners and users in analyzed online. In conjunction
Intelligent Energy To introduce
achieving energy efficiency with "dual carbon requirements"
Management System new revenue
reducing consumption and Delivered calculations and monitoring are
[referred to as: FMS- streams for the
promoting environmental conducted against standards to
EMS] Company
protection to support the assist real estate and facility
achievement of enterprise ESG owners and users in achieving
goals. energy efficiency consumption
reduction and environmental
protection to support the
attainment of enterprise ESG
goals.Smart Park IoT Provide asset owners and The business architecture To increase
Delivered
Platform [referred to operators with a supports flexible configurations product
28ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
as: K-IOT] comprehensive solution for various scenarios taking into superiority and
integrating powerful operation account requirements related to market
and maintenance tools projects and organizations roles competitiveness
management and intelligent and permissions and operations
decision-making capabilities. management as well as the need
for custom workflows custom
work standards custom reports
custom alert management and
customizable work order fields.The technology architecture
considers requirements such as
technological sustainability
security reliability performance
capacity scalability and mobile
technology.The system collects manages
and analyzes housing rental-
related data to monitor and
control subleasing and subletting
activities in the rental market
Develop an information
enhancing the standardization and
system for regulating Expand the
Sublease Supervision transparency of the leasing
subleasing and subletting Delivered Company's
System market protecting the rights of all
activities in the housing rental market scope
parties involved in renting
market.reducing risks and disputes
associated with subleasing and
subletting and improving the
efficiency and credibility of the
rental market.Strengthen
support for
flexible
configurations
Enhance support for flexible
to advance
configurations across various
comprehensive
scenarios to better facilitate
operational and
Enhance support for flexible comprehensive facility equipment
digital
configurations across various management activities throughout
management
scenarios including functions the entire lifecycle of a building
from an all-
for IoT integration operational including full coverage of
Facility Management encompassing
monitoring maintenance work handover and management
System [referred to as: Delivered perspective in
management basic settings transfer (customized feature)
FMS] various
intelligent analytics to achieve operation maintenance repair
scenarios
digital operational renovation and disposal
delivering
management of equipment and processes. Support IoT integrated
enhanced value-
facilities. operational monitoring
added services
maintenance work management
to customers
basic settings intelligent
and offering
analytics and other functions.robust support
for future
market
expansion.Details about R&D personnel:
2023 2022 Change (%)
Number of R&D personnel 38 37 2.70%
29ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
R&D personnel as % of total
employees 0.43% 0.40% 0.03%
Educational background
Bachelor’s degree 28 23 21.74%
Master’s degree 2 4 -50.00%
Junior college 8 10 -20.00%
Age structure
Below 30 27 24 12.50%
30~40711-36.36%
Over 40 4 2 100.00%
Details about R&D investments:
2023 2022 Change (%)
R&D investments (RMB) 4133484.37 3244129.11 27.41%
R&D investments as % of
operating revenue 0.14% 0.09% 0.05%
Capitalized R&D investments
(RMB) 0.00 0.00
Capitalized R&D investments
as % of total R&D 0.00% 0.00%
investments
Reason for any significant change to the composition of R&D personnel and impact:
□Applicable□ Not applicable
Reasons for any significant YoY change in the percentage of R&D investments in operating revenue:
□Applicable□ Not applicable
Reason for any sharp variation in the percentage of capitalized R&D investments and rationale:
□Applicable□ Not applicable
5. Cash Flows
Unit: RMB
Item 2023 2022 Change (%)
Subtotal of cash generated from
operating activities 3509206475.96 4526054341.31 -22.47%
Subtotal of cash used in operating
activities 3773299460.29 4420821237.45 -14.65%
Net cash generated from/used in
operating activities -264092984.33 105233103.86 -350.30%
Subtotal of cash generated from
investing activities 634734196.73 197490121.81 221.40%
Subtotal of cash used in investing
activities 7641999.39 45114342.34 -83.06%
Net cash generated from/used in
investing activities 627092197.34 152375779.47 311.54%
30ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Subtotal of cash generated from
financing activities 1484580254.47 303349674.44 389.40%
Subtotal of cash used in financing
activities 624251511.63 963797633.48 -35.23
Net cash generated from/used in
financing activities 860328742.84 -660447959.04 -230.16%
Net increase in cash and cash
equivalents 1223445277.64 -398048377.77 -407.36%
Explanation of why any of the data above varies significantly:
□Applicable □ Not applicable
* Cash generated from operating activities decreased year on year primarily driven by the decreased property sales revenue in the
Reporting Period.* Cash generated from investing activities increased year on year primarily driven by the receipt of payment for equity transfer in
the Reporting Period.* Cash used in investing activities decreased year on year primarily driven by the payment for investment last year.* Cash generated from financing activities increased year on year primarily driven by new bank borrowings in the Reporting
Period.* Cash used in financing activities decreased year on year primarily driven by the payment for an equity acquisition involving
entities under common control last year.Reason for any big difference between the net operating cash flow and the net profit for this Reporting Period:
□Applicable □ Not applicable
For the Reporting Period net cash generated from operating activities stood at RMB-264092984.33 representing a big difference
from the net profit of RMB449858861.48 primarily driven by the increased development costs in the Reporting Period.V Analysis of Non-Core Businesses
□Applicable □ Not applicable
Unit: RMB
Amount As % of totalprofit Main source/reason Recurrent or not
Yes (except for
Return on investment 705759652.36 99.86% Income from equity transfer equity transfer
income)
Gain/loss on changes in
fair value 0.00 0.00% Not
Asset impairments -212173623.03 -30.02% Inventory valuation allowances Not
Non-operating income Confiscation of security3604677.09 0.51% Not
deposits
Non-operating expense 6504504.20 0.92% Payments for liquidateddamages and fines Not
Credit impairment loss -19844952.87 -2.81% Allowances for doubtfulaccounts Not
31ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
VI Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
31 December 2023 1 January 2023 Change in Reason for any
Amount As % of total
significant
assets Amount
As % of total percentage (%)
assets change
Monetary 2748798476. 1517528893.assets 16.18% 9.59% 6.59% New bank loan72 83
Accounts
receivable 502806453.88 2.96% 419933915.30 2.65% 0.31%
Contract assets 844485.57 0.00% 1094632.90 0.01% -0.01%
Increased
Inventories 11098209095 1097533422365.33% 69.36% -4.03% development.74.37
costs
Investment
property 386810800.47 2.28% 405762739.18 2.56% -0.28%
Long-term Increased
equity 84057750.55 0.49% 79781437.31 0.50% -0.01% returns from
investments joint ventures
Fixed assets 66436408.90 0.39% 82745172.12 0.52% -0.13%
Construction in
0.00%0.00%0.00%
progress
Early
Right-of-use termination of
assets 23516796.22 0.14% 70168415.65 0.44% -0.30% the leased
assets
Short-term
borrowings 230915000.00 1.36% 0.00% 1.36% New bank loan
Operating
Contract
liabilities 820424953.42 4.83% 920828040.81 5.82% -0.99% revenue
carryforwards
Long-term 1399889274. 3618782344.borrowings 8.24% 22.87% -14.63% New bank loan47 00
Early
Lease liabilities termination of10571092.27 0.06% 77963283.55 0.49% -0.43%
the leased
assets
Transfer of
prepaid land
Prepayments 11983086.35 0.07% 100341806.56 0.63% -0.56% premiums to
development
costs
Recovery of
certain current
accounts and
Other
624394372.82 3.68% 639903523.33 4.04% -0.36% increased
receivables
allowances for
doubtful
accounts
Long-term Termination of
0.000.00%22651454.070.14%-0.14%
receivables financing lease
Deferred 1276440386. 1407551347. Reversal of
7.51%8.89%-1.38%
income tax 83 20 deductible
32ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
assets losses
Increased
Accounts
662869059.59 3.90% 608283388.52 3.84% 0.06% construction
payable
payables
Decreased
1217303294.1515085832.
Other payables 7.17% 9.57% -2.40% current
2545
accounts
Decreased
Current portion
3092324853. current portion
of non-current 18.20% 218858766.82 1.38% 16.82%
07 of long-term
liabilities
borrowings
Decreased sales
Other current
68373661.13 0.40% 83991786.83 0.53% -0.13% tax to be
liabilities
transferred
Increased sale
Long-term
400105655.56 2.36% 0.00 0.00% 2.36% and leaseback
payables
financing
Indicate whether overseas assets account for a higher proportion of total assets.□Applicable□ Not applicable
2. Assets and Liabilities at Fair Value
□Applicable □ Not applicable
Unit: RMB
Gain/loss
on fair- Cumulative Impairment
value fair-value allowance Purchased
Item Beginning
Sold in the
amount changes in changes for the
in the Reporting Other Ending
the charged to Reporting ReportingPeriod Period
changes amount
Reporting equity Period
Period
Financial assets
4.
Investment
s in other -887838.64 10830.71 636926.20
equity 261743.15
instruments
Total of the -
above 887838.64 10830.71 636926.20261743.15
Financial
liabilities 0.00 0.00
Contents of other changes:
Other changes were resulted from exchange rate movements.Significant changes to the measurement attributes of the major assets in the Reporting Period:
□ Yes□ No
3. Restricted Asset Rights as at the Period-End
Item Ending carrying value Reason for restriction
Monetary assets 15659341.60 Notes 1-10
Total 15659341.60
33ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Note 1: In terms of monetary assets with restricted right to use at the period-end there was a bank guarantee money of
RMB2200000.00 of the subsidiary company Shenzhen Shenfubao Property Development Co. Ltd.Note 2: In terms of monetary assets with restricted right to use at the period-end there was RMB3000000.00 of the subsidiary
company Shenzhen Facility Management Community Technology Co. Ltd. frozen by a court of law due to pre-litigation
preservation for contract disputes.Note 3: In terms of monetary assets with restricted right to use at the period-end there was a loan deposit of RMB1133604.61
provided as mortgage loan guarantees for commercial housing purchasers and paid by the Company as a real estate developer
according to real estate business practices.Note 4: In terms of monetary assets with restricted right to use at the period-end there was RMB8644166.67 of interest on term
deposits accrued at the period-end.Note 5: In terms of monetary assets with restricted right to use at the period-end there was RMB90000.00 of the subsidiary SZPRD
Xuzhou Dapeng Real Estate Development Co. Ltd. frozen due to house sale contract dispute case.Note 6: In terms of monetary assets with restricted right to use at the period-end there was RMB129021.18 in the account of the
subsidiary company Shenzhen Property Engineering and Construction Supervision Co. Ltd. The account was in a receiving-only
status because the legal person change formalities had not been completed by the period-end.Note 7: In terms of monetary assets with restricted right to use at the period-end there was RMB99103.58 due to the fact that the
information of shareholders retained in the bank by the subsidiary Shenzhen Yufa Industry Co. Ltd. was inconsistent with the
information of industrial and commercial shareholders in the Administration for Market Regulation and the bank account was
frozen.Note 8: In terms of monetary assets with restricted right to use at the period-end there was a POS security deposit of RMB1500.00
of subsidiary Shandong Shenguomao Real Estate Management Co. Ltd.Note 9: In terms of monetary assets with restricted right to use at the period-end there was RMB1000.00 which was the deposit for
POS machine of Jiangxi Branch of Shenzhen Shenfubao Property Development Co. Ltd. a subsidiary.Note 10: In terms of monetary assets with restricted right to use at the period-end there was RMB18570.85 which were restricted
funds frozen due labor arbitration case of the subsidiary Shenzhen Free Trade Zone Security Service Co. Ltd.VII Investments Made
1. Total Investment Amount
□Applicable□ Not applicable
2. Major Equity Investments Made in the Reporting Period
□Applicable□ Not applicable
3. Major Non-Equity Investments Ongoing in the Reporting Period
□Applicable□ Not applicable
34ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
4. Financial Investments
(1) Securities Investments
□Applicable □ Not applicable
Unit: RMB
Gain/
Accou Loss Purc Sold
Variet Initial nting Begin
on Accumulate hase in
y of Code of Name of measu ning
fair d fair value d in Gain/los
investment remen carryi value changes Rep
Rep s in Ending Accou Source of
securit security security chang ortin ortin Reportin carrying nting investmencost
y t ng charged to g value title t fundsmetho value es in equity g Peri g Period
d Repor Periting od od
Period
Invest Obtained
Dome Fair ments
400016 in
stic/Fo Gintian A 3565856. value 8878 10830.7 636926. in Gintian’s
reign 、
-261743.15 other
Gintian B 06 metho 38.64 1 20 debt
420016 equity
stock d instru restructuri
ments ng
3565856.887810830.7636926.
Total -- 0.00 -261743.15 0.00 0.00 -- --
0638.64120
(2) Investments in Derivative Financial Instruments
□Applicable□ Not applicable
No such cases in the Reporting Period.
5. Use of Funds Raised
□Applicable□ Not applicable
No such cases in the Reporting Period.VIII Sale of Major Assets and Equity Interests
1. Sale of Major Assets
□Applicable□ Not applicable
No such cases in the Reporting Period.
2. Sale of Major Equity Investments
□Applicable □ Not applicable
Transac Net profit Ratio Related Relatio Owners Credito Execut
Transac tion contribute of theEquity Date of d to the Effect on the net Pricing -party
nship hip of r’s ed as
tion sold sale price Company Company profit principl transact
betwee the rights schedul Disclosure date
party (RMB’ from the contrib e ion or
n the equity and ed or
0000) not transact involve liabiliti not; ifperiod- uted by ion d has es not
35ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
begin to the sale party been all involve give
the date of of the and the transfer d have reasons
sale equity Compa red or been all and
(RMB’00 to the ny not transfer measur
00) Compa red or es
ny’s not taken
total
profit
(%)
For details see the
Announcement on the
Progress of the
Successfully
Public Listing
resolved
Transfer of 100%
historical
Equity Interests in
Shenzhen problems
Wholly-owned
Jinghengt and realized
China 26 Subsidiary Shenzhen
ai Real 22 the Market Non-
Union 135.34 Decem Jinghengtai Real
Estate December 83500 62801.21 preservation valuati No related Yes Yes
Holding % ber Estate Development
Developm 2023 and on party
s Ltd. 2023 Co. Ltd. and
ent Co. enhancement
Completion of the
Ltd. of the value
Registration of
of state-
Changes in Industry
owned
and Commerce on
assets.www.cninfo.com.cn
(Announcement No.:
2023-39).
IX Principal Subsidiaries and Joint Stock Companies
□Applicable □ Not applicable
Principal subsidiaries and joint stock companies with an over 10% effect on the Company’s net profit
Unit: RMB
Relation
ship Principal
Name with the Registeredactivity capital Total assets Net assets
Operating Operating
revenue profit Net profitCompan
y
Shenzhen Developme
Huangcheng Subsidia nt and sales 30000000. 79239993 30053395 21522032 45520508. 32969496.Real Estate ry of real 00 67.48 44.18 3.33 59 22
Co. Ltd. estate
Shenzhen
International
Trade Center Subsidia Property
Property ry manageme
20000000.1859543138002786157500251018449167786715.
nt services 00 15.90 0.65 28.77 3.39 32Management
Co. Ltd.Subsidiaries obtained or disposed in the Reporting Period
□Applicable □ Not applicable
Subsidiary How subsidiary was obtained or disposed Effects on overall operations andin the Reporting Period operating performance
Shenzhen Jinghengtai Real Estate
Equity transfer Net profit contributed is 628012100
Development Co. Ltd.Notes to the principal subsidiaries and joint stock companies:
36ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
X Structured Bodies Controlled by the Company
□Applicable□ Not applicable
XI Prospects
(I) Industry Overview and Trends
See “I Industry Overview for the Reporting Period” in “Part III Management Discussion andAnalysis”.(II) The Company’s Development Strategy
As the traditional real estate market’s development declines on the whole Shenzhen Properties & Resources Development (Group)
Ltd. specialized in the traditional real estate will be confronted with the extremely severe industrial situation.In this context the Company put forward the “12345” overall development idea of “1 Vision + 2 Major Divisions + 3 DrivingFactors + 4 Businesses + 5 Value-added Services”. In other words the Company will take effective measures with the focus on
“industrial and urban space asset management” and “space digital ecosystem operation” to develop four major businesses including
industrial and urban space development industrial ecological operation property management services and main ecological
investment through expanding the main business and making breakthroughs. Meanwhile the Company will realize rapid deployment
and integration of five major value-added services including high-end consulting services customized housekeeper services
intelligent operation platform data tapping and commercial ecosystem integration. Base on Shenzhen with scientific and
technological innovation as the primary driving force the Company will include Guangdong Hong Kong and Macao metropolitan
area and surrounding areas to maximize the leverage of capital to build a door type intelligent management and control service
platform with smart society basic functions aiming to build “China’s leading intelligent operator of industrial and urban space”.In accordance with three-step strategic implementation route of “strengthening bases brink breakthrough and focus on leading” the
Company will seek transformation and upgrading in the development base on the current development conditions and promote
incremental development in the transformation to build unique development advantages and create a new pattern of innovation and
development of the Company.(III) Business plan for 2024
In 2023 amidst the continued global economic downturn and the challenging scenario of simultaneous decline in volume and prices
in the domestic real estate market the Group's management team remained steadfast in upholding the comprehensive leadership of
the Party maintained strategic resilience rigorously implemented decisions and arrangements of the Board of Directors and the Party
Committee pursued innovation tackled difficulties and concentrated on key tasks resulting in steady progress across various
business operations. Throughout the year the Group did not suffer any material safety incidents or material risk stability maintenance
events showing a positive and promising opening.In 2024 the Group continues to adhere to the working principle of "seeking progress while maintaining stability promoting stability
through progress stability with initiative and effectiveness in progress" rigorously implement the principle of "determining
production based on sales and determining expenses based on income" addressing uncertain market conditions through proactive
measures and definitive actions to uphold strategic resilience. Emphasis is placed on being target-oriented problem-oriented and
results-oriented with a focused effort on the precise and sustained execution around the four aspects of "stabilizing cash flow
controlling costs expanding capacity and strengthening foundations". Active achievements are utilized to promote the stability of the
overall production and operation. And resolutely overcome a number of difficulties affecting the advancement of major projects.Besides the Group's development will be guided toward a benign track where business segments and projects move forward together
and compete for development. The Group will continue to be a pioneer in enterprise reform and development comprehensively
accomplish the annual tasks and objectives and make new contributions to the Group's high-quality sustainable development and the
37ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
vision of building China's leading smart operator of industry-city space.First the Group will create conditions on the basis of the current resource endowment and business level and strive to
accomplish the leading annual indicators according to the plan. Advance key project marketing and the development of
existing projects in an organized manner to meet the annual budget objectives for operating revenue total profits and other
metrics. The opening of Lanhu Shidai Yutang Shangfu Sea Bay and Shenyang Digital Town projects will be timed according to
market conditions to guarantee the fulfillment of annual sales objectives.Second the Group will overcome difficulties strengthen node management and achieve the overall acceleration of projects
under construction. Schedule control will be intensified responsibilities will be fulfilled and improvements will be made in the
capability of commanding and controlling projects and the operating efficiency. The following work needs to be done for newly
started projects in a forward-looking manner including scheme design construction drawing design the determination of cost
targets at various phases and the implementation of bidding and tendering plans. Such work will be matched seamlessly with the
phased plans and will be carried out ahead of schedule moderately to ensure that each project is implemented with both quality
and quantity guaranteed in strict accordance with the phased plans. Advance in an orderly manner with the work progress of the
Tianjun Industrial Park and Fuyuan Industrial Park projects and sustain the integration and project proposal submissions for the
Huiyang Danshui project area.Third the Group will continue to strengthen the building of independent operating capacity of secondary platform
companies the development of platform functions and the playing of roles and stick to the development pattern of real
estate as the main business. A standardized model of the whole process of real estate project development will be built. The
results of real estate work conferences will be implemented as well as the improvement plans of "3+1" for project management
and "1+5" for cost management. Continuous efforts will be made to improve the project development management system and
achieve the complementation synergy and coordination among the business lines in the Group's project design construction
bidding and tendering and marketing. In addition the Group will compare its projects with benchmarking projects of the industry
to enhance the management level and build an efficient standardized model of the whole process of real estate project
development to guarantee the efficient and stable operation of projects during the whole life cycle. With respect to the property
management segment the high-quality expansion will be sped up and various steps will be taken to enhance the internal
management level. According to the annual target external M&As and endogenous expansion will be strengthened and the
integration of property management assets in the system will continue to be promoted in a bid to achieve the target of adding 10
million square meters of management scale through M&As within the year. Furthermore the opportunity from inspection and
remediation will be used for comprehensive remediation and the building of a service standardization system will be deepened so
that it will match the strategic positioning of the system's property management platform as soon as possible. The focus will be
placed on improving the quality and efficiency of stock assets and transformation and upgrading will be accelerated. The
growth of annual rental income shall not be less than 10% and the average occupancy rate shall not be less than 95%. With the
establishment of an indicator system for quality and efficiency improvement assessment of stock properties and an incentive and
restraint mechanism the format transformation and upgrading of old properties will be promoted and the stock asset management
will change from "passive lease" to "active operation".Fourth the Group will adhere to the Party's overall leadership promote the decentralization of business focus the
downward shift of management priorities and the penetration of management capabilities. The Group will continue to
consolidate the Party building strengthen the building of grass-roots Party organizations and Party members give full play to the
Party's political leadership to facilitate operation and development and carry out characteristic theme Party building and corporate
culture publicity and creation activities in due time. Financial management will aim at improving the efficiency and effectiveness
of resource utilization. The corresponding measures include optimizing resource allocation tightening budget control and
assessment strengthening industry-finance integration financial analysis and tax management and raising funds through multiple
channels. Sustain the improvement of the selection and employment system expedite talent pool development through a blend of
"internal selection and external recruitment" continue the deepening of multi-tier incentive and constraint mechanism construction
38ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
and ensure comprehensive implementation across second and third-tier companies; The Group's industrial operation platform of
"industry-university-research-application" will be built the industrial operation system will be improved gradually and the
investment attraction capability and level will be enhanced.Fifth the Group will be always vigilant about production safety complaint letters and visits and stability maintenance.Improve the system framework enforce quarterly safety production evaluations and establish a rational reward and punishment
system. Deepen the building of safe production standardization and the "dual prevention mechanism" and intensifying regular
production safety inspections. In addition hidden risks will be collated regularly list management will be implemented for risk
points in key areas and key processes and remediation will be strictly carried out to ensure that no production safety accident
occurs throughout the year. Enhance the coordination and linkage between petition work and the Group's key operational
endeavors deepen the use of cases as examples and catalysts for improvement and fully utilize the supportive protective and
enabling functions of petition work in operations.(IV) Potential risks
1. Market risk
Under the guidance of the policy that "houses are for living in not for speculating on" the demand side of the real estate market
remains in the downward channel. Consequently the development space of the property industry has been constantly compressed
industry profits have fallen sharply and there has been a shift from land dividends to management dividends. In particular it poses
unprecedented challenges to business capabilities such as cost design and engineering. The advancement of urban renewal projects is
confronted with complicated conditions and formidable obstacles and the Company's business and development face opportunities
and challenges.Under grim circumstances the Company thoroughly studied the opportunities and challenges brought about by macroeconomic
trends and policy movements actively sought the strategic breakthrough direction and adhered to prudent operation. Additionally it
raised funds from multiple channels focused on enhancing the management level and seized opportunities in the land market. Based
in Shenzhen the Company aims to extend its presence to the Guangdong-Hong Kong-Macao metropolitan area and surrounding
areas and strives to improve its sustainable development capabilities.
2. Land Reserve Risk
As a matter of fact the Company still lacks enough land reserves and development power at later stages. In recent years the supply
of residential land on Shenzhen Market has continuously declined. Various large-scale real estate enterprises have enlarged their
market shares and accelerated their M&A pace. While the real estate industry is centralizing the degree of centralization of the land
reserve scale has also been enhanced. As the external environment and the industry’s trend become much more complicated and
severe the increment market scale will further shrink and the market competition will become increasingly fierce.Facing the challenges the Company will continue to expand through market competition capital operation and urban renewal
increase land reserves and promote the launch of projects. In respect to property type residential projects will focus on Guangdong-
Hong Kong-Macao Greater Bay Area Yangtze River Delta metropolitan area and areas where existing projects locate and gradually
turn to central urban agglomeration surrounding Wuhan key cities in Chengdu- Chongqing in the West and those in Beijing Tianjin
and Hebei. Urban renewal projects will focus on Shenzhen Dongguan and Huizhou and follow-up of urban renewal projects in
Guangzhou. Comprehensive industry and urban projects will focus on Guangdong-Hong Kong-Macao Greater Bay Area Yangtze
River Delta region Wuhan region in the central part and Chengdu-Chongqing area in the West.
3. Financing Risk
In the process of actively increasing land reserves and accelerating the business development in the recent years the Company needs
to invest a large amount of funds for land acquisition and project development. In addition to its own funds the Company’s project
development funds need to be externally financed through bank loans and issuing securities.Currently the Company has steady financial situation and good credit condition and will further strictly control financial risks
actively explore various financing channels so as to raise funds for project development in the future.
39ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
The above business plan and business objectives do not represent the listed Company’s profit forecast for 2024. Whether it
can be achieved depends on various factors including changes in market conditions and the effort made by the
management team. Investors must pay special attention to that because there exists huge uncertainty.XII Communications with the Investment Community such as Researches Inquiries and
Interviews during the Reporting Period
□Applicable □ Not applicable
Place Type Index to
Date of visit of Way of visit of Visitor Contents and materials provided relevant
visit visitor information
Inquire about how the company signs
The
28 January 2023 Comp Online Indivi Indivi various business contracts and N/A
any communication dual dual whether electronic contract signing is
used
Inquire about whether the Company
The
30 January 2023 Comp Online Indivi Indivi adopts digital management methods N/A
any communication dual dual to effectively integrate and manage
various business operations
The
6 February 2023 Comp Online Indivi Indivi Inquire about the land reserve N/A
any communication dual dual situation
The
11April 2023 Comp Online Indivi Indivi Inquire about the Company's market N/A
any communication dual dual value management plan
The Inquire about the Company's business
31 May 2023 Comp Indivi IndiviBy phone structure and the reasons for the N/A
any dual dual decline in first-quarter performance
The
7 June 2023 Comp Online Indivi Indivi Inquire about the number of N/A
any communication dual dual shareholders
Inquire about the Company's relevant
The
9 June 2023 Comp Institu Indivi business layout and the merger andBy phone N/A
any tion dual acquisition situation in the property
management segment
Inquire about whether the company
The
3 July 2023 Comp Online Indivi Indivi has formulated and made public the N/A
any communication dual dual Management System for Information
Disclosure
The
5 July 2023 Comp Online Indivi Indivi Inquire about the staffing of the N/A
any communication dual dual research and development center
The Inquire about the timing of the
12 July 2023 Comp Indivi IndiviBy phone dividend payment for the Company's N/A
any dual dual B shares
The Inquire about the timing of the
17 July 2023 Comp Indivi IndiviBy phone dividend payment for the Company's N/A
any dual dual A shares
The
23 July 2023 Comp Online Indivi Indivi Inquire about the company's related N/A
any communication dual dual business layout
The
1 August 2023 Comp Online Indivi Indivi Inquire about the company's related N/A
any communication dual dual business layout
The
2 August 2023 Comp Indivi Indivi Inquire about issues related toBy phone N/A
any dual dual horizontal competition
40ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
The
12 August 2023 Comp Online Indivi Indivi Inquire about the company's N/A
any communication dual dual investment plan
The
1 September 2023 Comp Indivi Indivi Inquire about the current status of theBy phone N/A
any dual dual Company's projects
The
4 September 2023 Comp Online Indivi Indivi Inquire about dividend distribution N/A
any communication dual dual
The
14 September 2023 Comp Indivi Indivi Inquire if the Company has anyBy phone N/A
any dual dual financing plans
The
10 October 2023 Comp Online Indivi Indivi Inquire about whether the Company N/A
any communication dual dual has repurchase plans
The
11 October 2023 Comp Online Indivi Indivi Inquire about solutions to industry N/A
any communication dual dual competition
The
12 November 2023 Comp Online Indivi Indivi Inquire about the company's related N/A
any communication dual dual business layout
The
15 November 2023 Comp Indivi Indivi Inquire about the number ofBy phone N/A
any dual dual shareholders
The
19 November 2023 Comp Online Indivi Indivi Inquire about the Company's 14th N/A
any communication dual dual Five-Year Plan
The
23 November 2023 Comp Online Indivi Indivi Inquire about the company's related N/A
any communication dual dual business layout
Inquire about the progress in
The
29 November 2023 Comp Indivi Indivi resolving competition from peers andBy phone N/A
any dual dual the Company's current cash flow
situation
The
13 December 2023 Comp Online Indivi Indivi Inquire about the Company's plans N/A
any communication dual dual regarding ESG governance
The Inquire about the Company's main
18 December 2023 Comp Institu IndiviBy phone business operations and capital N/A
any tion dual operations.The
26 December 2023 Comp Indivi Indivi Inquire about the progress inBy phone N/A
any dual dual resolving competition from peers
The
27 December 2023 Comp Indivi Indivi Inquire about the equity transfer ofBy phone N/A
any dual dual Jinghengtai
The
29 December 2023 Comp Indivi Indivi Inquire about the equity transfer ofBy phone N/A
any dual dual Jinghengtai
XIII Implementation of the Action Plan for “Dual Enhancement of Quality and Profitability”
Has the Company disclosed its Action Plan for “Dual Enhancement of Quality and Profitability”
□Yes□No
41ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Part IV Corporate Governance
I General Information of Corporate Governance
The internal control system of the Company is complete accomplished and defined that in accordance with Company Law Articles
of Association and other laws and regulations as well as requirements of regulatory documents. The convene of Shareholders’
General Meeting the Board of Directors and Supervisory Board are strictly in accordance with relevant rules and regulations all
directors and supervisors earnestly and diligently commit their responsibilities. Corporate structure of the Company is complete and
the operation of the Company is standardized.Organized by the principle of being scientific simplified and high efficient the Company’s departments and institutions currently
include Party-mass office discipline inspection and supervision office (the audit department office of the supervisory committee
office of board of directors comprehensive office (procedure and information center letters and visits office) HR department
(training center) financial management department (settlement center) investment development department operation and
management department design management department (technological center) cost contract department engineering management
department (office of security committee) office of industrial operation. Each department performs its own functions and strictly
carries out work according to internal control system to ensure the normal and efficient operation of the Company.The Company has always attached great importance on standardizing insider information management formulated and completed
Management Provisions on Information Disclosure Work Procedures of Annual Report of Auditing Committee Accountability
System of Major Errors in Information Disclosure of Annual Report Work System of Annual Report Insider Management System of
Insider Information Management System of Investor Relationship and other internal control system to ensure the authenticity
accuracy and completeness of Company information disclosure. During the reporting period the Company strictly carried out
information disclosure corporate governance conference organization and other work according to requirements of securities
supervision disclosed information timely accurately and completely without any accidents which violate relevant internal control
system of information disclosure.The Company carried out quality self-examination of listed companies according to the requirements of Shenzhen Securities
Regulatory Bureau to find out deficiencies in the operation of the Company and formulate rectification plan to improve company
governance and standard operation.Indicate by tick market whether there is any material incompliance with the applicable laws administrative regulations and
regulations issued by the CSRC governing the governance of listed companies.□ Yes□ No
No such cases in the Reporting Period.II The Company’s Independence from Its Controlling Shareholder and Actual Controller in
Asset Personnel Financial Affairs Organization and Business
The Company was independent from the controlling shareholder in business personnel assets organization and finance to realize
that independent personnel independent finance complete assets independent organization and independent business. In aspect of
business: The Company was independent from the controlling shareholder with independent and complete business and independent
operation capability. There was no business which was same or competitive with the controlling shareholder. In aspect of personnel:
The Company was complete independent from the controlling shareholder in terms of labor and personnel management on
remuneration. Personnel of the Company are independent all ones signed labor contract with the Company. The Company was
42ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
independent from the shareholders or other related parties in personnel management social security salary etc. In aspect of asset:
The Company’s assets were complete and independent the property relationship was clear. There was no capital occupation by
controlling shareholder and assets of the Company were completely independent from controlling shareholder. In aspect of
organization: The Company’s organization was independent and the Company implemented rules and regulations as well as
responsibilities for all departments formed independent responsibilities and rights scientific and rational internal control system. In
aspect of finance: The Company’s finance was independent with independent finance department. The Company established the
independent finance settling system and financial management system had its own finance account and paid the tax in line with laws
run finance decision-making independently.The controlling shareholder of the Company performed normatively with no conduct that intervened with the operation decision-
making and operation activities directly or indirectly over the shareholders’ general meeting however the controlling shareholder
could influence on the significant decision-making through the shares holding.III Horizontal Competition
□Applicable □ Not applicable
Type of Relationshipwith the Company name Company Cause of Solution Progress andproblem Company nature problem subsequent plan
Shenzhen
Horizontal Controlling Investment
competition shareholder Holdings Co. Other Note 1 Note 2 Note 3
Ltd.Note 1: According to the overall plan of the Shenzhen Municipal Government on the restructuring of the state-owned assets
management system the State-owned Assets Supervision and Administration Commission of the People's Government of
Shenzhen Municipal decided to establish Shenzhen Investment Holdings Co. Ltd. (SIHC) merging Shenzhen Investment
Holdings Co. Ltd. Shenzhen Management-Investment Company and Shenzhen Trade Investment Holdings Co. Ltd. As a result
SIHC inherited 63.82% of the equity interests in the listed company ShenZhen Properties & Resources Development (Group) Ltd.(SZPRD) held by Shenzhen Investment Holdings Co. Ltd. and Shenzhen Management-Investment Company in accordance with
the law. On 19 October 2018 SIHC obtained the Confirmation of Securities Transfer Registration regarding the equity interest of
SZPRD and completed the transfer of the equity interest in SZPRD. In view of the fact that Shenzhen Construction Development
(Group) Company (“Shenzhen Construction Development”) ShenZhen Special Economic Zone Real Estate & Properties (Group)
Co. Ltd. (“SPG”) and SZPRD all wholly-owned subsidiaries of SIHC are operating real estate development and commercial
property sales business which belong to the same industry and there is competition in the same industry.Note 2: To avoid horizontal competition SIHC make the following commitments: 1. On the horizontal competition solution of
Shenzhen Construction Development: as the holding shareholder of the Listed Company during the listing period at Shenzhen
Stock Exchange of the Listed Company as for the current business of Shenzhen Construction Development which has horizontal
competition with the Listed Company within the scope permitted by law and regulation within 12 months from the equity of
SZPRD being transferred to SIHC SIHC will start the solution with practical operability among below horizontal competition
solution timely and complete implementation of the solution within 3 years from the date that the equity of SZPRD is transferred
to SIHC to solve current horizontal competition problems: (1) Shenzhen Construction Development signs asset custody agreement
with the Listed Company entrusts the assets which has direct competition with the Listed Company to the Listed Company
confirms fair custodian fee at the same time and takes effective measures to solve horizontal competition within commitment
period; (2) Inject assets with direct competition with the Listed Company into the Listed Company; (3) Transfer assets with direct
competition with the Listed Company to unrelated third party; (4) other measures which can solve horizontal competition
effectively and is favorable for protecting the interest of the Listed Company and legal interests of other shareholders. Before
solving current horizontal competition while company enterprise economic organization (not including enterprises controlled by
43ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
the Listed Company hereinafter referred to as subordinated Companies) which the Listed Company and SIHC hold controlling
shares or controls actually have business in case the involved dispute etc. have major influence on the business SIHC should
keep neutral as a controlling shareholder to ensure that the Listed Company and subordinated Companies can take part in market
competition on the principle of fair competition. 2. Horizontal competition solution of SPG: From 14 September 2016 to now
SPG has had stock suspension because of major assets restructuring. According to Review Opinions on Delaying Stock Resumption
because of Major Assets Restructuring of SPG announced by CITIC Securities and Huatai Securities on 26 November 2016 the
restructuring solution is that SPG plans to issue A share and / or use currency to purchase 100% equity of Evergrande Group
(hereinafter referred to as “the restructuring of SPG”). Guangzhou Chiron Real Estate Co. Ltd. will be the controlling shareholder
of SPG upon the completion of the restructuring of SPG. If the restructuring of SPG is completed SIHC will cease to control SPG
which means there will be no horizontal competition between SPG and SZPRD. If the restructuring of SPG is terminated for
business of SPG which has horizontal competition with the Listed Company SIHC within the scope permitted by law and
regulation SIHC will start a rational horizontal competition solution according to actual situation at the time within 12 months
after the termination of reconstruction of SPG and stock resumption announcement date and fulfill announcement obligation and
SPG will complete to implement the solution and solve the horizontal competition between SZPRD and SPG within 3 years from
the date SPG terminates the reconstruction and announces stock resumption. 3. Other commitments to avoid horizontal
competition: as the controlling shareholder of the Listed Company and during the listing period of the Listed Company at
Shenzhen Stock Exchange other subordinated Companies of SIHC will not engage in relevant business which has direct
horizontal business competition with the Listed Company in new business fields except for in the business field where it already
has had horizontal competition with the Listed Company. Shenzhen Investment Holdings promises not to seek improper benefits
with the position of controlling shareholder of the Listed Company and damage the interest of the Listed Company and its
shareholders. In case of violating above commitment SIHC shall undertake corresponding legal liabilities including but not
limited to undertaking compensation responsibilities for all losses caused to the Listed Company.Note 3: SIHC has always been actively committed to fulfilling its relevant commitments. During the term of commitment SIHC
did not seek any illegitimate interests as the controlling shareholding of SZPRD or damage any rights and interests of SZPRD and
its shareholders. During the term of commitment SIHC actively collated the underlying assets and businesses of Shenzhen
Construction Development (Group) Company and devoted itself to developing practical and feasible plans as soon as possible to
solve the horizontal competition issue for SZPRD. It also actively promoted the restructuring of SPG. However given the
objective circumstances SIHC failed to fulfill the original commitment to avoid horizontal competition. SIHC re-issued the Letter
on Changing the Commitment to Avoiding Horizontal Competition on 31 August 2021 and such commitment change matter was
approved at the first extraordinary general meeting of 2021 held on 27 September 2021. For more details see the Announcement
on the Application by the Company's Controlling Shareholder for Changing the Commitment to Avoiding Horizontal Competition
(Announcement No.: 2021-32) disclosed by the Company on www.cninfo.com.cn on 11 September 2021.
IV Annual and Special General Meetings Convened during the Reporting Period
1. General Meeting Convened during the Reporting Period
Investor
Meeting Type participation Date of the meeting Disclosure date Resolutions
ratio
The reports and proposals
deliberated and approved at the
The 2022 meeting included the Report on
Annual Annual General
General Meeting 60.01% 19 May 2023 20 May 2023 the Work of the Board of
Meeting Directors in 2022 the Report on
the Work of the Board of
Supervisors in 2022 the 2022
44ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Annual Report the 2022
Financial Accounts Report the
2023 Financial Budget Report
the Plan on Profit Distribution
and Capitalization from Capital
Reserve in 2022 the Proposal on
the Comprehensive Credit Line
for 2023 the Proposal on
Estimated Routine Related-party
Transactions for 2023 and the
Proposal on Renewing the
Engagement of Accounting Firm.For details please refer to the
Announcement on the Resolutions
of the 2022 Annual General
Meeting (No.: 2023-12) on
www.cninfo.com.cn.The Proposal on the Public
Listing Transfer of 100% Equity
of Wholly-owned Subsidiary
The 1st Shenzhen Jinghengtai Real Estate
Extraordin Development Co. Ltd. was
ary ExtraordinaryGeneral 20 November 2023 21 November 2023 deliberated and approved. ForGeneral 60.04%
Meeting Meeting
additional information please
refer to the announcement of
of 2023 resolutions made at the 2023 First
Extraordinary Shareholders'
Meeting with the reference No.
2023-32 on www.cninfo.com.cn.
The proposals deliberated and
approved at the meeting included
the Proposal on the Follow-up
Development of the Company's
Project of Slender West Lake
Ecological Health Valley in
Yangzhou (GZ342 GZ399 Plots)
the Proposal on Amending the
Articles of Association of the
Company the Proposal on
Revising the Rules of Procedure
The 2nd for General Meetings the
Extraordin Proposal on Revising the Rules of
ary ExtraordinaryGeneral 28 December 2023 29 December 2023 Procedure for the Board ofGeneral 57.27%Meeting Directors the Proposal on theMeeting Amendment of the Rules of
of 2023 Procedures for the Supervisory
Committee the Proposal on
Revising the Working Regulations
for Independent Directors and
the Proposal on the Amendment
and Establishment of Governance
Systems of the Company Like the
Annual Auditor Selection System.For details see the Announcement
on the Resolutions of the Second
Extraordinary General Meeting
in 2023 (No. 2023-40) on
45ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
www.cninfo.com.cn.
2. Special General Meetings Convened at the Request of Preferred Shareholders with Resumed Voting
Rights
□Applicable□ Not applicable
V Directors Supervisors and Senior Management
1. General Information
De
Be crea Otgi
nn Incr se
he En
r di
in ease inin th in ng
Incu gsh the e
cr sh
mbe Rep Re ea arGen A Reason forName der ge Office title nt/F Start of tenure End of tenure
ar
eh ortin po
se/ eh
orm g rti de ol
share
ol cr di changeer di Peri ng
ng od Pe
ea ng
(s (sha rio
se (s
re) d (s haha (s ha re)re) ha re)
re)
Liu Mal Party Secretary
Incu
Shengxiang 52 and Chairman of mbe 15 June 2018 26 September 2024e the Board nt
Wang Mal Director Deputy
Incu
Hangjun 57 Party Secretary mbe 15 June 2018 26 September 2024 --e GM nt
Incu
Zhang Mal Director Deputy
46 mbe 29 June 2022 26 September 2024
Zhimin e Party Secretary
nt
Incu
Shen Fem
Xueying 54 Director and CFO mbe 15 June 2018 26 September 2024ale
nt
Incu
Wang Ge Mal 52 Director mbe 15 June 2018 26 September 2024
e
nt
Incu
Xie Chang Mal 51 Director mbe 7 April 2020 26 September 2024
e
nt
Incu
Mei Mal Independent
Yonghong 59 Director mbe 15 June 2018 26 September 2024e
nt
Incu
Li Donghui Mal 51 IndependentDirector mbe 27 September 2021 26 September 2024e
nt
Incu
Hu Caimei Fem 41 IndependentDirector mbe 27 September 2021 26 September 2024ale
nt
Ma Hongtao Mal 55 Chairman of the Incu 21 July 2022 26 September 2024
46ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
e Supervisory mbe
Committee nt
Incu
Zhang Mal
Manhua 48 Supervisor mbe 15 June 2018 26 September 2024e
nt
Incu
Li Qinghua Mal 41 Supervisor mbe 15 June 2018 26 September 2024
e
nt
Employee
Supervisor
Wang Fem Executive
Incu
Qiuping 54 Director of ITC mbe 15 June 2018 26 September 2024ale Park Secretary of nt
the Party
Committee
Employee
Supervisor
Discipline
Inspection Incu
Gu Weimin Fem 42 Director Deputy mbe 15 June 2018 26 September 2024
ale Secretary of the nt
Discipline
Inspection
Commission
Member of the Incu
Chen Hongji Mal 55 Party Committee mbe 28 December 2020 26 September 2024
e and Deputy GM nt
Member of the Incu
Cai Lili Fem 51 Party Committee mbe 15 June 2018 26 September 2024
ale and Deputy GM nt
Mal Member of the
Incu
Li Peng 47 Party Committee mbe 15 June 2018 26 September 2024
e and Deputy GM nt
Member of the Incu
Zhang Mal 48 Party CommitteeGejian e Deputy GM and
mbe 15 June 2018 26 September 2024
Board Secretary nt
Total -- -- -- -- -- -- 0 0 0 0 0 --
Indicate whether any director supervisor or senior management resigned before the end of their tenure during the Reporting Period.□Yes□No
Change of directors supervisors and senior management:
□ Applicable□ Not applicable
2. Biographical Information
Professional backgrounds major work experience and current duties in the Company of the incumbent directors supervisors and
senior management:
Members of the Board of Directors:
Mr. Liu Shengxiang born in August 1971 is a now member of the Communist Party of China professor-level senior engineer
National Certified Architect (Level 1) and has obtained his Bachelor Degree Master of Engineering and MBA. In June 1994 he
joined Shenzhen Tagen Group Co. Ltd. and successively served as the deputy general manager general manager and general Party
branch secretary of Shenzhen Municipal Engineering Corp. and the deputy general manager of Shenzhen Tagen Group Co. Ltd. In
June 2013 he joined Shenzhen Road & Bridge Group as the executive director Secretary of the Party Committee and general
manager. He starts to serve as the Secretary of the Party Committee and the Chairman (June 2018) of the Company since September
47ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
2017. Concurrently he was the Secretary of the Party Committee Executive Director and GM (from August 2018 to May 2020) in
Shenzhen Toukong Property Management Co. Ltd.. Mr. Liu Shengxiang was awarded the title of Outstanding Communist Party
Member of Shenzhen in 2001 and obtained Tien-yow Jeme Civil Engineering Prize in 2013 and May 1st Labor Medal of Shenzhen
in 2015 the Party representative of the 6th Party Congress in Shenzhen.Mr. Wang Hangjun born in Nov. 1966 member of Communist Party of China is a senior auditor with a master degree of economy.He ever took post of Deputy Chief of Audit Bureau of Nanshan District Shenzhen; Vice Minister Minister of Audit Department of
Shenzhen Investment and Management Company; Vice Minister Minister of Supervision Department of Shenzhen Investment and
Management Company; Minister of Audit and Inspection Department of Shenzhen Investment Holding Co. Ltd. He has been
Deputy GM of the Company since Oct. 2007. Now he is the Director deputy Party Secretary and GM of the Company.Mr. Zhang Zhimin born in October 1977 is a Chinese Communist Party member who holds a master's degree. In 2016 he joined
the State-owned Assets Supervision and Administration Commission of the Shenzhen Municipal People's Government where he has
held various roles including chief staff member of the office (petition office) chief staff member of the office (party committee of the
office) deputy researcher of the office (party committee of the office) fourth-level researcher of the office and third-level researcher
of the office (party committee of the office). Since May 2022 he has served as the deputy secretary of the company's party
committee and since June 2022 he has taken on additional roles as the company's director deputy secretary of the party committee
and chairman of the labor union.Ms. Shen Xueying born in October 1969 member of the Communist Party of China Bachelor of Economics is a senior accountant.Ms. Shen Xueying has been engaged in the financial management of listed companies for nearly 30 years. She joined the Finance
Department of the Company in 1991 and successively served as the clerk and deputy manager of the financial management
department of the Company. She was the manager of the financial management department of the Company from 2007-2018 and has
served as the CFO of China Shenzhen Foreign Trade (Group) Corp. Ltd. since March 2020. Now she is currently the Director and
Chief Financial Officer of the Company.Mr. Wang Ge born in October 1971 the member of the Communist Party of China is now the senior engineer with the degree of
Bachelor of Engineering. Mr. Wang Ge has been engaged in the enterprise management for many years. He successively served as
the deputy director and director of the engineering department of Shenzhen Jian’an (Group) Co. Ltd. the manager and the deputy
secretary of the Party Branch of Jian’an Group Construction and Municipal Engineering Company and the deputy general manager
director the deputy secretary of the Party Committee and the general manager of Jian’an Group. From March 2017 to present he has
served as the Chief Engineer of Shenzhen Investment Holdings Co. Ltd.Mr. Xie Chang born in November 1971 CPC member bachelor of engineering senior engineer economist and political engineer.He used to be the head of the Party and Mass Work Department member of the Disciplinary Committee and head of the Asset
Management Department of Shenzhen Jian'an (Group) Co. Ltd.; the deputy GM of Shenzhen Sibiono GeneTech Co. Ltd.; the head
of the operation management department office director secretary of the Board of Directors of Shenzhen Foreign Labor Service Co.Ltd.; office director of Shenzhen Talent Exchange Service Center Co. Ltd. He has served as the head of the comprehensive
management department of Shenzhen Investment Holdings Co. Ltd. from September 2017 and a director of the Company from
April 2020.Mr. Mei Yonghong born in October 1964 is the member of the Communist Party of China and graduated from the Department of
Agriculture of Huazhong Agricultural University with the Degree of Bachelor of Agriculture. He successively served as the deputy
director of the General Office of Ministry of Science and Technology and the director of the information research office the director
of the Policy Regulations and System Reform Department of Ministry of Science and Technology and the mayor of Jining City in
Shandong Province. Now he serves as the Director of BGI Group Chairman of the Board of BGI Agricultural Group (starting from
September 2015) CEO of County Garden Agricultural Holdings Co. Ltd. (starting from August 2018) and Executive Vice President
of BGI Group since May 2022.Mr. Li Donghui born in June 1976 is a graduate with a bachelor's degree from the Audit Department of the Economics and
Management School of Wuhan University and received a PhD degree in Accounting and Finance at the University of New South
48ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Wales Business School Australia. He once worked as a civil servant at the Department of Financial System Audit of the National
Audit Office of the People's Republic of China and as the Executive Dean of the School of Management Jinan University. He is
currently a distinguished professor of accounting and finance and doctoral supervisor at the College of Economics Shenzhen
University and the Director of the Committee of Professors of the college. Many of his articles were published in top international
journals and key authoritative academic journals of China. He was named a talented person of Shenzhen's overseas high-level
"Peacock Plan" and served as an expert of the Senior Title Review Committee of the Shenzhen Financial Bureau an expert of the
Xinshen Communication Think-tank of Shenzhen Press Group and a reviewer of the National Natural Science Foundation of China.Ms. Hu Caimei born in September 1982 is a Doctor of Management Postdoctoral Fellow in Economics Associate Professor and
backup talent of Shenzhen. She currently serves as the Deputy Director of the Institute of Financial Development and State-owned
Assets and Enterprises China Development Institute and has been long engaged in policy research and consultation in finance and
state-owned assets and enterprises with extensive experience in the consultation on the reform and development of state-owned
assets and enterprises. She presided over and participated in a number of national ministerial and provincial scientific research
projects and more than 50 consulting topics. Many of her research results were adopted by government departments and won
scientific research awards.Members of the Supervisory Committee:
Mr. Ma Hongtao born in October 1968 and holding a master's degree. He is a member of the Chinese Communist Party.Throughout his career Mr. Ma has held various positions in the banking sector. From 1991 to 2000 he worked at the Bank of China
Taiyuan Branch as a cashier auditor credit section chief and deputy director of the office. Following that he served as the branch
manager and department general manager of China Minsheng Bank Taiyuan Branch from 2000 to 2004. From 2004 to 2016 he held
the position of business supervisor and department general manager at the head office of China Minsheng Bank. From 2016 to 2019
Mr. Ma took a study tour and provided teaching support in mountainous areas. He then served as the deputy general manager of the
finance department and capital director of Kelu Electronics Co. Ltd. from 2019 to 2020. From 2020 to 2022 he was the general
manager of the office of Wanhe Securities Co. Ltd. Currently Mr. Ma is the chairman of the supervisory board of the company. He
has held this position since July 2022.Mr. Zhang Manhua born in Feb. 1975 master’s degree member of the Communist Party of China studied and worked in Central
South University from 1992 to 2004; Senior Manager in the Investment Center of Konka Group and concurrently worked as the
Board Secretary for Shenzhen Jvlong Optoelectronic Co. Ltd. and Investment Manager in Shenchao Technological Investment Co.Ltd. from 2004 to 2013; he worked as deputy director in the Strategy & Development Department in Shenzhen Investment Holding
Co. Ltd from 2013 to 2018. He is the director in Law and Risks Management department of Shenzhen Investment Holdings Co. Ltd
since 2018.Mr. Li Qinghua born in April 1982 has obtained his Bachelor degree. From 2003 to 2013 he worked for DZX International
Appraisal Limited and successively served as the project assistance the project manager and the senior manager; from 2013 to 2017
he served as the senior executive of the property right management and legal affairs department of Shenzhen Investment Holdings
Co. Ltd. and from 2017 till now he serves as the deputy director of the audit department of Shenzhen Investment Holdings Co. Ltd.Ms. Wang Qiuping born in January 1970 is a Party member and senior economist with a bachelor's degree. From 1992 to 2015 she
was engaged in management in the General Manager's Office Accounting and Finance Department Operation Management
Department and Development Management Department of the Company. From 2015 to 2018 she served as the Party Secretary
Deputy General Manager and Trade Union President of ITC Property Management. From 2018 to 2020 she served as the Party
Secretary and General Manager of ITC Property Management. From 2020 to August 2021 she served as the Party Secretary
Executive Director and General Manager of ITC Technology Park. She is currently the Party Secretary and Executive Director of
ITC Technology Park.Ms. Gu Weimin Born in October 1981 is the member of the Communist Party of China with the Master’s Degree. From 2007 to
2010 she served in KPMG Shenzhen in external audit; from 2011 till now she has worked for the Company in the audit department
49ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
(the office of the board of supervisors) and is now the Deputy Secretary of the Discipline Inspection Commission and the director of
the Discipline Inspection and Supervision Office (Audit Department the Office of the Supervisory Committee) of the Company.Executive officers:
Mr. Wang Hangjun born in Nov. 1966 member of Communist Party of China is a senior auditor with a master degree of economy.He ever took post of Deputy Chief of Audit Bureau of Nanshan District Shenzhen; Vice Minister Minister of Audit Department of
Shenzhen Investment and Management Company; Vice Minister Minister of Supervision Department of Shenzhen Investment and
Management Company; Minister of Audit and Inspection Department of Shenzhen Investment Holding Co. Ltd. He has been Deputy
GM of the Company since Oct. 2007. Now he is the Director deputy Party Secretary and GM of the Company.Mr. Chen Hongji born in May 1968 CPC member postgraduate degree and master of philosophy. He has worked in Shenzhen
Municipal People's Government for many years. He joined Shenzhen Construction Investment Holding Co. Ltd. in January 1998 and
successively served as section chief of development research department deputy director of office deputy director of Party
committee office and director of secretary office of board of directors. In October 2004 he joined Shenzhen Investment Holding Co.Ltd. and successively served as director of the party mass department and director of the board office. Since July 2012 he has been
the deputy GM of Shenzhen Expander. From December 2020 he has served as a member of the party committee and deputy GM of
the Company.Ms. Cai Lili Born in November 1972 is the member of the Communist Party of China and has obtained the Master’s Degree in
Economics. Since 1995 he has worked in Shenzhen Tax Service SAT and ever served as the deputy chief of the taxation and
scientific and technological development department of Shenzhen Tax Service SAT and the member of the Party Organization and
the deputy director of Futian District Tax Bureau in Shenzhen. Currently he is the member of the Party Committee deputy general
manager and Chief Financial Officer.Mr. Li Peng Born in May 1976 is the member of the Communist Party of China the Bachelor of Engineering and the intermediate
economist. Since July 1999 he has worked for the Company as the operation manager and successively served as the deputy
manager of the Company’s development management department the manager of the cost control department and the secretary of
the Party branch and the deputy general manager of Shenzhen Huangcheng Real Estate Co. Ltd. Currently he now is the member of
the Party Committee and deputy general manager.Mr. Zhang Gejian born in September 1975 the member of the Communist Party of China MBA is an Accountant as well as
Auditor. He was engaged in internal auditing work in Audit Department of the Company since July 1997. He acted as the audit
manager Supervisor of the Company and concurrently the Cost Control Manager. Now he is the member of the Party Committee the
vice GM and Board Secretary of the Company.Ms. Shen Xueying born in October 1969 the member of the Communist Party of China Bachelor of Economics is a senior
accountant. Ms. Shen Xueying has been engaged in the financial management of listed companies for nearly 30 years. She joined the
Finance Department of the Company in 1991 and successively served as the clerk and deputy manager of the financial management
department of the Company. She has been the manager of the financial management department of the Company from 2007 to 2018
and the Chief Financial Officer of China Shenzhen Foreign Trade (Group) Corp. Ltd. since March 2020 and now she is the Director
and Chief Financial Officer of the Company.Offices held concurrently in shareholding entities:
□Applicable □Not applicable
Office held in Remunerationor allowance
Name Shareholding entity theshareholding Start of tenure End of tenure from the
entity shareholdingentity
50ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Wang Ge Shenzhen Investment ChiefHoldings Co. Ltd. Engineer 1 March 2017 Yes
Director of the
Xie Chang Shenzhen Investment generalHoldings Co. Ltd. management 7 April 2020 Yes
department
Director of the
Zhang Manhua Shenzhen Investment legal and riskHoldings Co. Ltd. management 1 January 2017 Yes
department
Deputy
Li Qinghua Shenzhen Investment director of theHoldings Co. Ltd. audit 1 January 2017 Yes
department
Except for the major offices held concurrently in shareholding entities above Directors Wang Ge and Xie
Note Chang as well as Supervisors Zhang Manhua and Li Qinghua also serve as Director or Supervisor in a number
of non-listed subsidiaries or invested companies of relevant shareholders.Offices held concurrently in other entities:
□Applicable □Not applicable
Remuneratio
n or
Name Other entity Office held in the entity Start of tenure End of tenure allowance
from the
entity
China Shenzhen
Shen Xueying Foreign Trade Chief Financial Officer 1 March 2020 No
(Group) Co. Ltd.Director and Executive
BGI Group BGI Vice President of BGI
Agricultural Group Group Chairman of BGI
Mei Yonghong County Garden Agricultural Group CEO 1 September 2015 Yes
Agricultural Holdings of Country Garden
Co. Ltd. Agricultural Holdings
Co. Ltd.Distinguished professor
doctoral supervisor
Li Donghui Shenzhen University director of the Professor 1 April 2019 Yes
Committee of the School
of Economics
Deputy Director of the
Institute of Financial
Hu Caimei China (Shenzhen)Development Institute Development and State- 1 November 2016 Yesowned Assets and
Enterprises
Note N/A
Punishments imposed in the recent three years by the securities regulator on the incumbent directors supervisors and senior
management as well as those who left in the Reporting Period:
□ Applicable□ Not applicable
3. Remuneration of Directors Supervisors and Senior Management
Decision-making procedure determination basis and actual payments of remuneration for directors supervisors and senior
management:
During this Reporting Period the board and the management of the Company signed statement of operation objectives
responsibility for 2023 conducted appraisal system integrating operation indicators classification indicators with management
objectives. After the end of this Reporting Period assessment was implemented by the board. Remuneration of senior executives
51ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023was determined according to “Management Method of Annual salary System of Directors Supervisors and Senior Executives ofShenZhen Properties & Resources Development (Group) Ltd.” and “Long-term Incentive-and-Restraint Mechanism of ShenZhenProperties & Resources Development (Group) Ltd.” and need to be implemented after the annual assessment of the board.Remuneration of directors supervisors and senior management for the Reporting Period
Unit: RMB'0000
Total before-tax Any
Name Gender Age Office title Incumbent/F remuneration remunerationormer from the from related
Company party
Liu Male 52 Party Secretary and ChairmanShengxiang of the Board Incumbent 113.60 No
Wang
Hangjun Male 57
Director Deputy Party
Secretary GM Incumbent 107.95 No
Zhang Director Deputy Party
Male 46 Incumbent 96.65 No
Zhimin Secretary
Shen
Xueying Female 54 Director and CFO Incumbent 114.72 No
Wang Ge Male 52 Director Incumbent 0 Yes
Xie Chang Male 51 Director Incumbent 0 Yes
Mei
Yonghong Male 59 Independent Director Incumbent 8 Yes
Li Donghui Male 51 Independent Director Incumbent 8 No
Hu Caimei Female 41 Independent Director Incumbent 8 No
Chairman of the Supervisory
Ma Hongtao Male 55 Incumbent 103.92 No
Committee
Zhang
Manhua Male 48 Supervisor Incumbent 0 Yes
Li Qinghua Male 41 Supervisor Incumbent 0 Yes
Employee supervisor executive
Wang director of ITC Technology
Qiuping Female 54 Park Secretary of the Party Incumbent 62.55 No
Committee
Employee supervisor Director
of Discipline Inspection Office
Gu Weimin Female 42 and Deputy Secretary of the Incumbent 48.47 No
Discipline Inspection
Commission
Chen Member of the Party
Hongji Male 55 Committee Vice GM Incumbent 96.65 No
Cai Lili Female 51 Member of the PartyCommittee Vice GM Incumbent 96.65 No
Li Peng Male 47 Member of the PartyCommittee Vice GM Incumbent 96.65 No
Zhang Member of the Party
Gejian Male 48 Committee Vice GM Board Incumbent 96.65 NoSecretary
Total -- -- -- -- 1058.461 --
Note: 1. Pay Statement: (1) The above table of remuneration does not include the long term incentive bonus deferred to be paid in
2023: Liu Shengxiang Wang Hangjun Chen Hongji Cai Lili Li Peng and Zhang Gejian received deferred long term incentive
bonuses of RMB397700 RMB377800 RMB106400 RMB288600 RMB295900 RMB261000 respectively in the year 2023.
(2) As the assessment for the year 2023 has not been completed the data in the above table is estimated according to the relevant
rules and the actual number of awards will ultimately prevail.
52ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Other notes
□ Applicable□ Not applicable
VI Performance of Duty by Directors in the Reporting Period
1. Board Meetings Convened during the Reporting Period
Meeting Date of the meeting Disclosure date Resolutions
The meeting reviewed and approved the
The 16th Meeting of the 10th 27 February 2023 Proposal on Signing Performance Target
Board of Directors Responsibility Letters for Senior Management
in 2023
The board of directors has approved a range of
proposals which include the Work Report of the
Board of Directors for 2022 Annual Report
and Summary for 2022 Financial Final
Account Report for 2022 Financial Budget
Report for 2023 Proposal on Provision and
Reduction of Various Asset Impairment
Reserves Proposal on Profit Distribution and
Capitalization of Reserve Fund for 2022
th th Proposal on Comprehensive Credit Limits andThe 17 Meeting of the 10 24 March 2023 25 March 2023 Financing Limits for 2023 Proposal on
Board of Directors
Operating Plan and Investment Budget for
2023 Proposal on Estimated Routine Related
Party Transactions for 2023 Internal Control
Self-assessment Report for 2022 Proposal on
Renewing the Engagement of Accounting Firm
and Report on Social Responsibility for 2022.For more details please refer to the
Announcement of Board Resolution on the 17th
Meeting of the 10th Board of Directors (No.
2023-03) on www.cninfo.com.cn.
The Proposal on Convening the 2022
Shareholders' Meeting and the Company's First
th th Quarter Report for 2023 were deliberated andThe 18 Meeting of the 10 27 April 2023 28April 2023 approved. For details see the Announcement on
Board of Directors
the Resolutions of the 18th Meeting of the 10th
Board of Directors (No. 2023-09) on
www.cninfo.com.cn.The Semi-annual Report and Summary of the
Company for 2023 and Proposal on the Follow-
up Development of the Company's Yangzhou
th th Shouxihu Ecological Health Valley ProjectThe 19 Meeting of the 10 25 August 2023 28August 2023 (GZ342 GZ399 Plots) were deliberated and
Board of Directors
approved. For details see the Announcement on
the Resolutions of the 19th Meeting of the 10th
Board of Directors (No. 2023-17) on
www.cninfo.com.cn.The Proposal on the Long-Term Incentive
th Settlement of Shenzhen Property Group forThe 20 Meeting of the 10th 27 October 2023 30 October 2023 2019-2021 Proposal on the Payout of Long-
Board of Directors
Term Incentive Bonuses for 2021 Proposal for
the Payout of Deferred Long-Term Incentive
53ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Bonuses for 2022 and Deliberation on the
Company's Third Quarter Report of 2023 were
deliberated and approved. For details see the
Announcement on the Resolutions of the 20th
Meeting of the 10th Board of Directors (No.
2023-24) on www.cninfo.com.cn.
The Proposal on the Public Listing Transfer of
100% Equity of Wholly-owned Subsidiary
Shenzhen Jinghengtai Real Estate Development
st Co. Ltd. and the Proposal on Convening theThe 21 Meeting of the 10th 3 November 2023 6 November 2023 First Extraordinary General Meeting of 2023
Board of Directors
were deliberated and approved. For details see
the Announcement on the Resolutions of the
21st Meeting of the 10th Board of Directors
(No. 2023-26) on www.cninfo.com.cn.The proposals deliberated and approved
included the Proposal on the Results of the
Company's 2022 Executive Assessment and Its
Application Plan Proposal on the Adjustment
of Members of the 10th Board of Directors'
Special Committee Proposal on Amending the
Articles of Association of the Company
Proposal on Revising the Rules of Procedure
for General Meetings Proposal on Revising the
nd th Rules of Procedure of the Board of DirectorsThe 22 Meeting of the 10 12 December 2023 13 December 2023 Proposal on Revising the Working Regulations
Board of Directors
for Independent Directors Proposal on the
Amendment and Establishment of Governance
Systems of the Company Like the Annual
Auditor Selection System and Proposal on
Convening the Second Extraordinary General
Meeting of 2023. For details see the
Announcement on the Resolutions of the 22nd
Meeting of the 10th Board of Directors (No.
2023-33) on www.cninfo.com.cn.
2. Attendance of Directors at Board Meetings and General Meetings
Attendance of directors at board meetings and general meetings
Total number Board The director
of board Board meetings Board Board failed to
Director meetings the meetings attended by
meetings meetings the attend two General
director was attended on way of attended director consecutive meetings
eligible to site telecommuni through a failed to board attended
attend cation proxy attend meetings(yes/no)
Liu
Shengxiang 7 1 6 0 0 No 3
Wang
Hangjun 7 1 6 0 0 No 3
Shen
Xueying 7 1 6 0 0 No 3
Wang Ge 7 1 6 0 0 No 3
Xie Chang 7 0 7 0 0 No 3
54ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Mei
Yonghong 7 1 6 0 0 No 3
Li Donghui 7 1 6 0 0 No 3
Hu Caimei 7 0 7 0 0 No 3
Zhang
7 1 6 0 0 No 3
Zhimin
Why any director failed to attend two consecutive board meetings:
Not applicable
3. Objections Raised by Directors on Matters of the Company
Indicate by tick mark whether any directors raised any objections on any matter of the Company.□ Yes□ No
No such cases in the Reporting Period.
4. Other Information about the Performance of Duty by Directors
Indicate by tick mark whether any suggestions from directors were adopted by the Company.□Yes □ No
Suggestions from directors adopted or not adopted by the Company:
During the Reporting Period all directors of the Company actively attended Board meetings and general meetings and performed
their duties diligently and conscientiously in strict accordance with the Articles of Association the Rules of Procedure of the Board of
Directors and relevant laws rules and regulations. Based on the Company's reality they put forward relevant opinions on the
Company's major governance and operation decisions and reached consensus through sufficient communication and discussion.Additionally they resolutely supervised and promoted the implementation of the resolutions of the Board of Directors to ensure
scientific timely and efficient decision-making and safeguard the legitimate rights and interests of the Company and all shareholders.VII Special Committees under the Board of Directors during the Reporting Period
Num
ber Important Specific
Name of of comments Other dispute
committee Members meeti Date of meeting Contents and performance dngs suggestio of duties matters
conv ns (if any)
ened
Li Donghui 1. The proposal for reappointment Supervising
Wang Hangjun of the accounting firm was the work of
Zhang Zhimin reviewed and approved; external
Mei Yonghong 2. The Company's 2022 Annual audit
and Hu Caimei Audit Report and the 2023 agencies and
(adjusted at the Annual Audit Work Plan was the
5
Audit and Risk 22nd Meeting of reviewed; Company's
Committee 23 March 2023 Agreethe 10th Board 3. The Inspection Report on the internal
of Directors Company's 2022 Guarantee audit work;
convened on 12 Related Party Transactions and supervising
December 2023 Other Matters was deliberated; the
to: Li Donghui 4. The Company's 2022 Financial implementat
Mei Yonghong Statements was vetted; ion of the
Hu Caimei Liu 5. The Report on the Audit of the Company's
55ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Shengxiang Company's 2022 Annual internal
Xie Chang) Consolidated Financial control
Statements was vetted; policies;
6. The Report on the Audit of the coordinating
Company's 2022 Internal Control the
was vetted; communicat
1. The Report on the Progress of ion of the
Audit Work in the First Quarter of management
2023 was vetted; internal
2. The 2023 Major Risk audit
Assessment Report was vetted; departments
3. The 2022 Internal Control and relevant
26 April 2023 Agree
System Work Report was vetted; departments
4. The Form for Monitoring with
Significant Risks in Q1 2023 was external
vetted; and audit
5. The Company's First Quarter agencies.
Report for 2023 was vetted.
1. The Semi-annual Report and
Summary of the Company for
2023 was vetted;
The Report on the Progress of
Audit Work in the Second Quarter
of 2023 was vetted;
3. The Report on Guarantees and
Related Party Transactions
24 August 2023 Agree
Inspection of the First Half of
2023 was vetted;
4. TheMonitoring Report on
Significant Risks in Q2 2023 was
vetted; and
5. The Report on Public
Sentiment Management for Q2
2023 was vetted.
1. The Company's 2023 Third
Quarterly Report was vetted.
2. The Report on the Progress of
Audit Work in the Third Quarter
of 2023 was vetted;
26 October 2023 3. TheMonitoring Report on Agree
Significant Risks in Q3 2023 was
vetted; and
4. The Report on Public
Sentiment Management for Q3
2023 was vetted.
The Auditor's Report on the Audit
20 December 2023 Plan for the 2023 Annual Report Agree
was received.The Proposal on the 2022 Studying the
25 May 2023 Performance Evaluation Results Agree assessment
Hu Caimei Mei of the Group Company was vetted standards
Remuneration Yonghong Li 1. The 2022 Annual Performance remuneratio
and Evaluation Donghui Xie 2 Evaluation Plan for Senior n policies
Committee Chang Shen Management of the Group was and plans
1 November 2023 Agree
Xueying deliberated and approved for the
2. The 2022 Individual Duty Company's
Reports of Senior Management of directors
56ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
SZPRD was reviewed and and senior
approved management
3. The Completion Status Chart personnel;
for Annual Performance supervising
Objectives of Senior Management the
of SZPRD was reviewed and performance
approved of duties by
4. The supplementary and veto the
items for the 2022 senior Company's
management assessment was directors
deliberated and senior
5. The roster of personnel management
accountable for the 2022 senior personnel;
management assessment was conducting
deliberated annual
performance
assessment
on the
Company's
directors
and senior
management
personnel
and offering
suggestions.Liu
Shengxiang
Wang Hangjun
Zhang Zhimin
Wang Ge Xie
Chang (adjusted
at the 22nd
Strategic
Meeting of the
Development
10th Board of
and Investment 0
Directors
Decision
convened on 12
Committee
December 2023
to: Liu
Shengxiang
Wang Hangjun
Zhang Zhimin
Wang Ge Shen
Xueying)
Mei Yonghong
Liu
Shengxiang
Wang Ge Hu
Caimei Li
Donghui
Nomination (adjusted at the
0
Committee 22nd Meeting of
the 10th Board
of Directors
convened on 12
December 2023
to: Mei
Yonghong
57ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Zhang Zhimin
Wang Ge Hu
Caimei Li
Donghui)
VIII Performance of Duty by the Supervisory Committee
Indicate by tick mark whether the Supervisory Committee found any risk to the Company during its supervision in the Reporting
Period.□ Yes□ No
The Supervisory Committee raised no objections in the Reporting Period.IX Employees
1. Number Functions and Educational Backgrounds of Employees
Number of in-service employees of the Company as the parent
at the period-end 98
Number of in-service employees of major subsidiaries at the
period-end 8719
Total number of in-service employees at the period-end 8817
Total number of paid employees in the Reporting Period 8817
Number of retirees to whom the Company as the parent or its
major subsidiaries need to pay retirement pensions 0
Functions
Function Employees
Production 6381
Sales 50
Technical 1433
Financial 174
Administrative 544
R&D 38
Managerial 197
Total 8817
Educational backgrounds
Educational background Employees
Junior college and technical secondary school and above 2852
Senior high school and below 5965
Total 8817
58ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
2. Employee Remuneration Policy
To align with the Group's development strategy requirements in 2023 the Group implemented a performance-based assessment
and management system for managers of subordinate enterprises which further increased the work efficiency and created a good
entrepreneurial atmosphere for officers. The Group headquarters rigorously implemented several compensation management
systems and conducted market-oriented research and revision on subordinate companies' organizational structure design
department function division post establishment and staffing and compensation and performance system.
3. Employee Training Plans
In 2023 the Group and its subsidiaries each focused on their respective roles worked together to optimize talent development
mechanisms accelerated the cultivation of leadership talents conducted specialized training courses for key positions and mid-to-
senior level talents further enhanced the business proficiency and capability qualities of the cadre team optimized learning
resources activated the "talent pool" of internal trainers and further strengthened the internal empowerment system. It
continuously built a learning organization and offered courses to enhance management abilities improve professional skills and
upgrade job skills for employees at all levels so as to continuously enhance the employees' professional knowledge business
capabilities and execution skills and realize the win-win situation of company development and staff growth.
4. Labor Outsourcing
□Applicable□ Not applicable
X Profit Distributions (in the Form of Cash and/or Stock)
How the profit distribution policy especially the cash dividend policy was formulated executed or revised in the Reporting Period:
□Applicable □ Not applicable
On 28 December 2023 the Company revised the Shareholders' Return Plan for the Next Three Years (2023-2025) which was
considered and approved at the Second Extraordinary General Meeting of 2023 of the Company with separate counting of votes
for small and medium-sized investors and the Independent Directors expressed their independent opinions on the revision of the
system. For details please refer to the Announcement on Resolutions of the 22nd Meeting of the Tenth Session of the Board of
Directors (Announcement No. 2023-33) and the Announcement on Resolutions of the Second Extraordinary General Meeting of
2023 (Announcement No. 2023-40) disclosed by the Company on 13 December 2023.
Special statement about the cash dividend policy
In compliance with the Company’s Articles of Association and
Yes
resolution of general meeting
Specific and clear dividend standard and ratio Yes
Complete decision-making procedure and mechanism Yes
Independent directors faithfully performed their duties and
Yes
played their due role
Specific reasons and the next steps it intends to take to enhance
the investor return level if the Company did not conduct cash N/A
dividend:
Non-controlling interests are able to fully express their opinion
Yes
and desire and their legal rights and interests are fully protected
In case of adjusting or changing the cash dividend policy the N/A
conditions and procedures involved are in compliance with
59ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
applicable regulations and transparent
Indicate by tick mark whether the Company fails to put forward a cash dividend proposal despite the facts that the Company has
made profits in the Reporting Period and the profits of the Company as the parent distributable to shareholders are positive.□ Applicable□ Not applicable
Final dividend plan for the Reporting Period:
□Applicable □ Not applicable
Bonus shares for every 10 shares (share) 0
Dividend for every 10 shares (RMB) (tax inclusive) 3.12
Total shares as the basis for the profit distribution proposal 595979092
(share)
Cash dividends (RMB) (tax inclusive) 185945476.70
Cash dividends in other forms (such as share repurchase)
(RMB) 0.00
Total cash dividends (including those in other forms) (RMB) 185945476.70
Distributable profit (RMB) 1495323958.98
Total cash dividends (including those in other forms) as % of
total profit distribution 100%
Cash dividend policy
If the Company is in a mature development stage and has no plans for any significant expenditure in profit allocation the ratio of
cash dividends in the profit allocation shall be 80% or above.Details about the proposal for profit distribution and converting capital reserve into share capital
The Board has approved a final dividend plan as follows: based on the share capital of 595979092 shares a cash dividend of
RMB3.12 (tax inclusive) per 10 shares is to be distributed to the shareholders with no bonus issue from either profit or capital
reserves.XI Equity Incentive Plans Employee Stock Ownership Plans or Other Incentive Measures
for Employees
□Applicable□ Not applicable
No such cases in the Reporting Period.XII Construction and Implementation of Internal Control System during the Reporting
Period
1. Internal Control Construction and Implementation
During the Reporting Period the Company established improved and effectively implemented internal control according to the
Basic Code for Internal Control of Enterprises the Guidelines on Internal Control of Listed Companies and the Company's actual
situation to ensure the legitimacy and compliance of business and management guarantee scientific and rational operating
procedures and promote the normal and orderly functioning of all major processes.Building on the issuance of the Guidelines for the Construction of Risk Internal Control and Compliance System of SZPRD the
Company regularly reviewed the weaknesses and deficiencies in the risk internal control and compliance systems. In response to
new business changes and issues it specified measures to address compliance in key business areas and critical processes
promptly carried out relevant system abolishment revision and establishment work and organized the release of the
60ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Comprehensive Risk Management Manual and Internal Control Manual. By formalizing compliance management experience
through rules and regulations the Company simultaneously conducted specialized training on risk management and internal
control for 120 employees aiming to extend internal control from the group headquarters to all subsidiaries continuously
expanding the management scope and effectively broadening the coverage of risk management and internal control efforts.
2. Material Internal Control Weaknesses Identified for the Reporting Period
□ Yes□ No
XIII Management and Control of Subsidiaries by the Company during the Reporting
Period
Name of Integration plan Integratio
Problems
encountered in Solutions taken Settlement
Follow-up
company n progress integration progress
settlement
plan
1. Develop a plan for transferring business
management rights;
2. Speed up the enhancement of modern
corporate systems promote the
modernization of corporate governance
systems and capabilities and establish a
robust hierarchical authorization and
control system;
3. Explore actions to minimize losses or
reverse losses after the unit has moved
1. Heavy personnel
Transfer of beyond the support period of the original
burdens; 2.operational shareholders drive ongoing quality
Shenzhen Disparities exist in The work is
management improvement and efficiency gains and None at
Property Complete the salary and being
authority to ITC establish a collaborative business working the
Management d benefits system; 3. progressed as
Property mechanism; moment
Co. Ltd. Inability of the per the plan.Management in 4. Research the professional advantages of
cadre pool to meet
2023 supporting service companies in areas such
operational needs
as Electromechanical maintenance and
elevator maintenance establish seamless
connections in the upstream and
downstream industry chains and enhance
business support capabilities; and
5. Deepen human resources reform
establish rules and regulations establish a
sound compensation management system
and continue to advance market-oriented
employment reform.
1. Heavy personnel 1. Develop a plan for transferring business
burdens severe management rights;
aging of cadres and 2. Speed up the enhancement of modern
Transfer of insufficient reserves corporate systems promote the
Shenzhen
operational of reserve cadres; 2. modernization of corporate governance
Shenfubao The work is
management Disparities exist in systems and capabilities and establish a None at
Hydropower Complete being
authority to ITC the salary and robust hierarchical authorization and the
Municipal d progressed as
Property benefits system; 3. control system; moment
Service Co. per the plan.Management in Subpar standard of 3. Explore actions to minimize losses or
Ltd.
2023 business; 4. reverse losses after the unit has moved
Significant pressure beyond the support period of the original
to reduce losses and shareholders drive ongoing quality
turn losses around. improvement and efficiency gains and
61ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
establish a collaborative business working
mechanism;
4. Research the professional advantages of
supporting service companies in areas such
as hydroelectric maintenance and
landscaping management establish
seamless connections in the upstream and
downstream industry chains and enhance
business support capabilities; and
5. Deepen human resources reform
establish rules and regulations establish a
sound compensation management system
and continue to advance market-oriented
employment reform.
1. Develop a plan for transferring business
management rights;
2. Speed up the enhancement of modern
corporate systems promote the
modernization of corporate governance
systems and capabilities and establish a
robust hierarchical authorization and
1. Heavy personnel
control system;
burdens severe
3. Explore actions to minimize losses or
aging of cadres and
reverse losses after the unit has moved
Transfer of insufficient reserves
beyond the support period of the original
Shenzhen operational of reserve cadres; 2.shareholders drive ongoing quality The work is
Shenfubao management Disparities exist in None at
Complete improvement and efficiency gains and being
Property authority to ITC the salary and the
d establish a collaborative business working progressed as
Development Property benefits system; 3. moment
mechanism; per the plan.Co. Ltd. Management in Subpar standard of
4. Research the professional advantages of
2023 business; 4.
supporting service companies in areas such
Significant pressure
as urban services establish seamless
to reduce losses and
connections in the upstream and
turn losses around.downstream industry chains and enhance
business support capabilities; and
5. Deepen human resources reform
establish rules and regulations establish a
sound compensation management system
and continue to advance market-oriented
employment reform.
1. Develop a plan for transferring business
management rights;
1. Heavy personnel 2. Speed up the enhancement of modern
burdens severe corporate systems promote the
aging of cadres and modernization of corporate governance
Transfer of insufficient reserves systems and capabilities and establish a
Shenzhen operational of reserve cadres; 2. robust hierarchical authorization and
The work is
Free Trade management Disparities exist in control system; None at
Complete being
Zone Security authority to ITC the salary and 3. Explore actions to minimize losses or the
d progressed as
Service Co. Property benefits system; 3. reverse losses after the unit has moved moment
per the plan.Ltd. Management in Subpar standard of beyond the support period of the original
2023 business; 4. shareholders drive ongoing quality
Significant pressure improvement and efficiency gains and
to reduce losses and establish a collaborative business working
turn losses around. mechanism;
4. Research the professional advantages of
supporting service companies in areas such
62ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
as security service establish seamless
connections in the upstream and
downstream industry chains and enhance
business support capabilities; and
5. Deepen human resources reform
establish rules and regulations establish a
sound compensation management system
and continue to advance market-oriented
employment reform.
1. Develop a plan for transferring business
management rights;
2. Speed up the enhancement of modern
corporate systems promote the
1. Heavy personnel
modernization of corporate governance
burdens severe
systems and capabilities and establish a
aging of cadres and
robust hierarchical authorization and
Transfer of insufficient reserves
control system;
Shenzhen operational of reserve cadres; 2.
3. Explore actions to minimize losses or The work is
Foreign Trade management Disparities exist in None at
Complete reverse losses after the unit has moved being
Property authority to ITC the salary and the
d beyond the support period of the original progressed as
Management Property benefits system; 3. moment
shareholders drive ongoing quality per the plan.Co. Ltd. Management in Subpar standard of
improvement and efficiency gains and
2023 business; 4.
establish a collaborative business working
Significant pressure
mechanism; and
to reduce losses and
4. Deepen human resources reform
turn losses around.establish rules and regulations establish a
sound compensation management system
and continue to advance market-oriented
employment reform.XIV Evaluation Report or Independent Auditor’s Report on Internal Control
1. Internal Control Evaluation Report
Disclosure date of the internal control
self-evaluation report 30 March 2024
Index to the disclosed internal control
self-evaluation report http://www.cninfo.com.cn
Evaluated entities’ combined assets as %
of consolidated total assets 100.00%
Evaluated entities’ combined operating
revenue as % of consolidated operating 100.00%
revenue
Identification standards for internal control weaknesses
Type Weaknesses in internal control over Weaknesses in internal control notfinancial reporting related to financial reporting
Serious defect: Major defects:
1. the control environment is invalid; 1. Serious violation of national laws and
2. Commitment of major fraud by regulations leading to major litigation or
directors supervisors or senior investigation of regulatory agencies
Nature standard management of the Company; ordered suspension of business for
3. the audit institution discovered the rectification investigation for criminal
current financial report had great defect responsibility or replacement of senior
while the internal control of the managers;
Company didn’t found out during the 2. Abnormal major changes of directors
operating process; supervisors senior management and
63ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
4. Correction of major misstatement in main technical personnel of the
financial reports reported or disclosed by Company;
the Company; 3. Major decision-making errors due to
5. the supervision of the Company’s lack of internal democratic decision-
Audit and Risk Management Committee making procedures or unscientific
and the internal audit department on the procedures;
internal control was invalid. 4. Serious loss of core management or
Important defect: technical personnel;
1. didn’t abide by the universally 5. Vicious negative news frequently
acknowledged accounting standard to appeared in the media involving a wide
choose and apply the accounting policies; range and negative existing influence;
2. had not built up the anti-fraud process 6. Significant impact on the Company’s
and the control measures; production and operation due to lack of
3. had not built up the corresponding system control or system failure of
control mechanism or had not executed important business;
the corresponding compensating control 7. Major defects of internal control
for the accounting treatment which was evaluation to be rectified;
unconventional or with special 8. Any other negative circumstances
transaction; generating significant impact on the
4. the control during the process of the Company.
financial report at the period-end existed Significant defects:
one or multiple defects that could not
guarantee the compile of the financial 1. Incomplete democratic decision-
report reach the goal of being real and making process that affects production
complete; and operation of the Company;
5. Important or general defects of internal 2. Violation of internal rules and
control to be rectified. regulations leading to important losses;
Common defect: refers to the other 3. Exposure of negative news by the
control defect except for the above great media leading to significant impact on
defect and significant defect. the Company;
4. Important defects of important
business regulations or system to be
rectified;
5. Any other negative case leading to
great impact on the Company.Common defects: any other control
defect except for the above major and
significant defects.Serious defect: Major defects: direct property loss ≥
potential misstatement of the operating 1.00% of net assets of the previous year;
income≥1% of the operating income of Significant defects: 0.5% of net assets of
the consolidated statements of the the previous year ≤ direct property loss <
Company potential misstatement of the 1.00% of net assets of the previous year;
total assets amount≥0.30% of the total Common defects: direct property loss <
assets of the consolidated statements of 0.5% of net assets of the previous year.the Company potential misstatement of
the net assets≥1.00% of the net assets of
the consolidated statements of the
Company.Important defect:
Quantitative standard 0.50% of the operating income of the
consolidated statements of the
Company≤misstatement<1% of the
operating income of the consolidated
statements of the Company; 0.15% of the
total assets of the consolidated statements
of the Company ≤misstatement<0.30%
of the total assets of the consolidated
statements of the Company 0.5% of the
net assets of the consolidated statements
of the Company ≤misstatement<1% of
the net assets of the consolidated
statements of the Company.Common defect:
64ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
misstatement of the operating
income<0.5% of the operating income of
the consolidated statements of the
Company misstatement of the total
assets amount<0.15% of the total assets
amount of the consolidated statements of
the Company misstatement of the net
assets<0.5% of the net assets of the
consolidated statements of the Company.Number of material weaknesses in
internal control over financial reporting 0
Number of material weaknesses in
internal control not related to financial 0
reporting
Number of serious weaknesses in internal
control over financial reporting 0
Number of serious weaknesses in internal
control not related to financial reporting 0
2. Independent Auditor’s Report on Internal Control
□Applicable □ Not applicable
Opinion paragraph in the independent auditor’s report on internal control
We believe that Shenzhen Properties & Resources Development (Group) Ltd. maintained efficient internal control of financial
reports in all significant aspects according to “Basic Standards of Corporate Internal Control” and relevant regulations.Independent auditor’s report on internal control disclosed or not Disclosed
Disclosure date 30 March 2024
Index to such report disclosed http://www.cninfo.com.cn
Type of the auditor’s opinion Unmodified unqualified opinion
Material weaknesses in internal control not related to financial
reporting None
Indicate by tick mark whether any modified opinion is expressed in the independent auditor’s report on the Company’s internal
control.□ Yes□ No
Indicate by tick mark whether the independent auditor’s report on the Company’s internal control is consistent with the internal
control self-evaluation report issued by the Company’s Board.□Yes □ No
XV Remediation of Problems Identified by Self-inspection in the Special Action on the
Governance of Listed Companies
Not applicable.
65ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Part V Environmental and Social Responsibility
I Major Environmental Issues
Indicate by tick mark whether the Company or any of its subsidiaries is a heavily polluting business identified by the environmental
protection authorities of China.□ Yes□ No
Administrative penalties imposed for environmental issues during the Reporting Period
Name of the Impact on the
company or Remediation
subsidiary Penalty reason Violation situation Penalty result
production and
operation of the measures of the
company listed companies Company
N/A N/A N/A N/A N/A N/A
Other environmental information disclosed with reference to key emission units
The Company attaches great importance to environmental protection and strictly implements relevant laws and regulations. During
the Reporting Period no major environmental violations occurred and no administrative penalties were imposed on environmental
protection. In 2023 Huangcheng Real Estate Company a subsidiary of the Company had construction projects: the Humen Sea
Bay Project in Dongguan and Guangming Yutang Shangfu Project in Shenzhen which were both located near major roads in the
areas and close to residential communities and municipal roads with strict ecological requirements for all environmental work.Since the commencement of construction efforts have been made to actively carry out pollution prevention pollution control dust
prevention noise reduction and other works to enhance the satisfaction of the surrounding residents. The environmental risk
prevention responsibilities of the project management department were diligently carried out with active cooperation with
environmental regulatory personnel for on-site inspections strict adherence to environmental impact assessment and "three
simultaneous" requirements and the standardization of methods for wastewater discharge dust reduction and noise reduction. The
projects under construction in Humen Sea Bay and Guangming Yutang Shangfu are planned with measures conducive to
environmental protection and pollution control. The requirement is for environmental protection and pollution control facilities to
be designed constructed and utilized simultaneously with the main engineering works. Various pollutants (such as exhaust gas
wastewater garbage industrial waste residue noise oil pollution and various radioactive and non-radioactive pollutants
contained in building materials) and all types of building materials shall be effectively managed and meet the required standards.The construction projects Lanhu Times Phase 1 and Phase 2 of Rongyao Real Estate Company a subsidiary of the Company are
situated near the main thoroughfare Osmanthus Road in the Guanlan area. The vicinity of the projects is predominantly industrial
parks with a national environmental monitoring station and a school to the south of the site and residential buildings at the
northeast corner of the site. Since the commencement of construction the project has established an organizational structure for
pollution prevention and control management and a system of pollution prevention and control measures. The overall planning
incorporates measures favorable to environmental protection and pollution control making full use of the terrain and strictly
implementing the soil and water conservation plan.Actions taken to reduce carbon dioxide emissions during the Reporting Period and the impact:
□ Applicable□ Not applicable
Reasons for not disclosing other environmental information
Neither the Company nor any of its subsidiaries is a heavily polluting business identified by the environmental protection
authorities of China.
66ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
II Social Responsibility
(1) Annual tax payments and cash dividends.
Shenzhen Property Group and its subsidiaries fulfilled a tax payment obligation of RMB42.87 million in the fiscal year 2023 and
distributed a cash dividend of RMB215148500 to shareholders as per the Company's bylaws and shareholder resolutions. In the
fiscal year 2023 Shenzhen Property Group showcased exceptional operational results and financial stability demonstrating its tax
compliance awareness and sense of responsibility. This also indicates a sound financial position and a consistent growth in
profitability fostering a mutually beneficial relationship between the Company and its shareholders. These accomplishments not
only showcase the Company's financial prowess and governance competencies but also exemplify its commitment to ethical
business practices and social responsibility. In future development Shenzhen Property Group will continue to maintain a prudent
business strategy and sound financial condition creating more value for its shareholders and society.
(2) Solving unemployment problems.
Shenzhen Property Group and its affiliated enterprises provided a total of 221 positions to the society in 2023 hiring a total of
1369 individuals including 18 fresh graduates 34 military veterans and 4 disabled individuals. Shenzhen Property Group
actively embraced social responsibility by actively advancing a strategy of talent diversification bringing new vigor and
innovative capabilities to its development. As a socially responsible company Shenzhen Property Group consistently adheres to a
people-oriented development philosophy emphasizing talent recruitment and cultivation while also making positive contributions
to social harmony and stability.
(3) Employee care.
In order to strengthen the people-centered development philosophy and implement the Group's work mechanism of assistance in
depth the Party Committee of the Shenzhen Property Group held a symposium to extend regard to the employees in difficulty and
the symposium of "July 1st" Party members in need before the Spring Festival. Before the Spring Festival employee welfare event
for those in need the Group conducted an overall and scrupulous investigation identification and category-based registration and
record and confirmed 55 persons as the targets in need of assistance including 12 Party members in difficulty. A total of 4 Party
members in need were comforted during the "July 1st" event for Party members facing difficulties. In order to safeguard the safety
of frontline workers operating in hot weather conditions the general Party branch of Wuhe Urban Renewal Company and
Yangzhou Shouxihu Jingyue Company both subsidiaries of Shenzhen Property Group organized the "deliver beverages to
construction sites pool solidarity and strength to facilitate development" event providing cooling tea and refreshing drinks to
frontline workers.
(4) Carry out blood donation activity.
Shenzhen Property Group's subsidiary ITC Property Management is fully committed to creating a "Virtue Culture" centered
around volunteer activities which has launched the "red flag red action" public welfare blood donation campaign across various
enterprises nationwide. Over the past two years the scope of public welfare blood donation activities has expanded from the
Shenzhen region to encompass the entire country. In 2023 a total of 730 individuals participated with 560 successfully donating
blood amounting to a total volume of 190700ml. The "red flag red action" campaign started in 2011 and has now held twelve
sessions. It has organized a total of 1171 instances of voluntary blood donation by Party members and the public with a
cumulative blood donation volume exceeding 399600ml.
67ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
(5) Longhua District General Union's charitable donations.
The Rongyao Real Estate Company a subsidiary of Shenzhen Property Group actively responded to the government's call to
participate in donation activities which donated a total of RMB5000 to the Longhua District General Union to be used for caring
for new forms of employment workers in Longhua District workers on the edge of difficulty children of workers in need
conducting emergency relief and warmth initiatives promoting charitable activities publicizing public welfare projects and
purchasing materials.III Efforts in Poverty Alleviation and Rural Revitalization
SZPRD and its affiliated business organisations organised and carried out consumption assistance activity and spent
RMB1620000 in total on the procurement of agricultural products through consumption assistance in 2023.
68ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Part VI Significant Events
I Fulfillment of Commitments
1. Commitments of the Company’s Actual Controller Shareholders Related Parties and Acquirers as
well as the Company Itself and other Entities Fulfilled in the Reporting Period or Ongoing at the Period-
end
□Applicable □ Not applicable
Date of
Commitment Promisor Type of Details of commitment Term ofcommitment commitment commitment Fulfillmentmaking
Wholly-owned
subsidiary
Shenzhen
Construction
Development
and majority-
owned
subsidiary SPG
of SIHC deal
with real estate
Commitments Commitments operation and
made in commercial
acquisition Shenzhen
on horizontal
Investment competition
house sales
documents or which belong to 6 September NormalHoldings Co. related-party Three years 2
shareholding Ltd. (SIHC) transactions
the same 2018 performance
industry of the
alteration and capital Listed
documents occupation Company and
has horizontal
competition
with the Listed
Company. To
avoid
horizontal
competition
SIHC make the
following
commitment.1
Commitments To reduce andCommitments standardize
made in on horizontal related
acquisition Shenzhen
Investment competition transactionsdocuments or related-party with the Listed 6 September Long-term NormalHoldings Co. transactions Company 2018 performanceshareholding Ltd.alteration and capital SIHC makes
documents occupation the followingcommitment.3
Fulfilled on
time Yes
Note 1: Wholly-owned subsidiary Shenzhen Construction Development and majority-owned subsidiary SPG of SIHC deal with
real estate operation and commercial house sales which belong to the same industry of the Listed Company and has horizontal
competition with the Listed Company. To avoid horizontal competition SIHC make the following commitments: 1. On the
horizontal competition solution of Shenzhen Construction Development: as the holding shareholder of the Listed Company during
the listing period at Shenzhen Stock Exchange of the Listed Company as for the current business of Shenzhen Construction
Development which has horizontal competition with the Listed Company within the scope permitted by law and regulation within
69ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
12 months from the equity of SZPRD being transferred to SIHC SIHC will start the solution with practical operability among
below horizontal competition solution timely and complete implementation of the solution within 3 years from the date that the
equity of SZPRD is transferred to SIHC to solve current horizontal competition problems: (1) Shenzhen Construction
Development signs asset custody agreement with the Listed Company entrusts the assets which has direct competition with the
Listed Company to the Listed Company confirms fair custodian fee at the same time and takes effective measures to solve
horizontal competition within commitment period; (2) Inject assets with direct competition with the Listed Company into the
Listed Company; (3) Transfer assets with direct competition with the Listed Company to unrelated third party; (4) other measures
which can solve horizontal competition effectively and is favorable for protecting the interest of the Listed Company and legal
interests of other shareholders. Before solving current horizontal competition while company enterprise economic organization
(not including enterprises controlled by the Listed Company hereinafter referred to as subordinated Companies) which the Listed
Company and SIHC hold controlling shares or controls actually have business in case the involved dispute etc. have major
influence on the business SIHC should keep neutral as a controlling shareholder to ensure that the Listed Company and
subordinated Companies can take part in market competition on the principle of fair competition. 2. Horizontal competition
solution of SPG: From 14 September 2016 to now SPG has had stock suspension because of major assets restructuring. According
to Review Opinions on Delaying Stock Resumption because of Major Assets Restructuring of SPG announced by CITIC Securities
and Huatai Securities on 26 November 2016 the restructuring solution is that SPG plans to issue A share and / or use currency to
purchase 100% equity of Evergrande Group (hereinafter referred to as “the restructuring of SPG”). On 9 November 2020 SPG
issued an announcement that the current condition to continue to promote the major assets restructuring was not sound yet based
on the current market environment and decided to terminate this transaction to safeguard interests of the company and all
shareholders. After the termination of this transaction SIHC is still the controlling shareholder of SPG. For business of SPG which
has horizontal competition with the Listed Company SIHC within the scope permitted by law and regulation SIHC will start a
rational horizontal competition solution according to actual situation at the time within 12 months after the termination of
reconstruction of SPG and stock resumption announcement date and fulfill announcement obligation and SPG will complete to
implement the solution and solve the horizontal competition between SZPRD and SPG within 3 years from the date SPG
terminates the reconstruction and announces stock resumption. 3. Other commitments to avoid horizontal competition: as the
controlling shareholder of the Listed Company and during the listing period of the Listed Company at Shenzhen Stock Exchange
other subordinated Companies of SIHC will not engage in relevant business which has direct horizontal business competition with
the Listed Company in new business fields except for in the business field where it already has had horizontal competition with the
Listed Company. Shenzhen Investment Holdings promises not to seek improper benefits with the position of controlling
shareholder of the Listed Company and damage the interest of the Listed Company and its shareholders. In case of violating above
commitment SIHC shall undertake corresponding legal liabilities including but not limited to undertaking compensation
responsibilities for all losses caused to the Listed Company.Note 2: SIHC has always been actively committed to fulfilling its relevant commitments. During the term of commitment SIHC
did not seek any illegitimate interests as the controlling shareholding of SZPRD or damage any rights and interests of SZPRD and
its shareholders. During the term of commitment SIHC actively collated the underlying assets and businesses of Shenzhen
Construction Development (Group) Company and devoted itself to developing practical and feasible plans as soon as possible to
solve the horizontal competition issue for SZPRD. It also actively promoted the restructuring of SPG. However given the
objective circumstances SIHC failed to fulfill the original commitment to avoid horizontal competition. SIHC re-issued the Letter
on Changing the Commitment to Avoiding Horizontal Competition on 31 August 2021 and such commitment change matter was
approved at the first extraordinary general meeting of 2021 held on 27 September 2021. For more details see the Announcement
on the Application by the Company's Controlling Shareholder for Changing the Commitment to Avoiding Horizontal Competition
(Announcement No.: 2021-32) disclosed by the Company on www.cninfo.com.cn on 11 September 2021.
Note 3: To reduce and standardize related transactions with the Listed Company as controlling shareholder of the Listed company
and during the listing period of the Listed Company at Shenzhen Exchange Stock SIHC promises: 1. SIHC and its controlling or
70ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
actually controlled companies enterprises economic organizations (not including enterprises controlled by the Listed Company
hereinafter referred to as the “subordinated companies”) will strictly exercise the rights of shareholders according to provisions of
laws regulations and other normative documents and fulfill the obligations of shareholders and keep the independence of the
Listed Company in assets finance employees business and agency etc. 2. SIHC promises not to use its position of controlling
shareholder to promote board of shareholders or board of directors to make resolutions which may damage the legal interest of the
Listed Company or other shareholders; 3. SIHC and its subordinated companies will try their best to avoid having related
transactions with the Listed Company. In case the transaction with the Listed Company is inevitable SIHC and its subordinated
companies will have transaction with the Listed Company on the basis of equality and free will according to fair rational and
normal commercial transaction conditions will not require or accept conditions which is more preferential than the Listed
Company gives to the third party in any fair market transactions and strictly fulfill various related transactions with the Listed
Company with good will. 4. SIHC and its subordinated companies will strictly fulfill decision making procedures and relevant
information disclosure obligations of related transactions according to articles of association of the Listed Company and relevant
laws and regulations. 5. SIHC and its subordinated companies will make sure that they will not seek special interests beyond above
stipulations by having related transactions with the Listed Company will not use related transactions to illegally transfer funds and
profits of the Listed Company and to maliciously damage the legal interests of the Listed Company and its shareholders. 6. As for
current related transaction with the Listed Company within the scope permitted by laws and regulations SIHC promises to
confirm rational related transaction solution within 12 months after the Company shares are transferred to SIHC and complete to
implement the solution within 5 years after the Company shares are transferred to SIHC to solve such related transactions
completely. The specific forms include: (1) After current related transaction contract expires it will not be renewed. In case
contract renewal is necessary according to the operation needs of the Listed Company it will fulfill relevant decision making
procedures strictly according to procedures of related transactions. (2) Under the precondition of possible realization terminate
contract which is being fulfilled and adopt marketized and open bid invitation etc. inquire again on service items involved in
such related transactions to confirm appropriate service provider. In case related transaction is involved it should fulfill relevant
decision making procedures according to related transaction procedures. (3) In case there is possibility of price re-negotiation in
the related transaction contract which is being fulfilled conduct price negotiation again make the contract amount after re-pricing
conform to market price and not higher than the amount of contract which is being fulfilled and strictly fulfill relevant decision
making procedures according to related transaction procedures.(4) Other appropriate measures which can reduce and finally
eliminate current related transaction but not necessary. 7. In case of violating above commitments SIHC shall undertake
corresponding legal liabilities including but not limited to undertaking compensation liability for all the losses caused to the
Listed Company.
2. Where there had been an earnings forecast for an asset or project and the Reporting Period was still
within the forecast period explain why the forecast has been reached for the Reporting Period.□Applicable□ Not applicable
II Occupation of the Company’s Capital by the Controlling Shareholder or Its Related
Parties for Non-Operating Purposes
□Applicable□ Not applicable
No such cases in the Reporting Period.III Irregularities in the Provision of Guarantees
□Applicable□ Not applicable
71ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
No such cases in the Reporting Period.IV Explanations Given by the Board of Directors Regarding the Latest “Modified Opinion”
Issued by the Independent Auditor
□Applicable□ Not applicable
V Explanations Given by the Board of Directors the Supervisory Board and the
Independent Directors (if any) Regarding the Independent Auditor's “Modified Opinion” on
the Financial Statements of the Reporting Period
□Applicable□ Not applicable
VI YoY Changes to Accounting Policies and Estimates and Correction of Material
Accounting Errors
□Applicable □ Not applicable
As of January 1 2023 the Company adopts the relevant provisions of Accounting Standards Interpretation for Business
Enterprises No. 16 (CK (2022) No. 31). For a single transaction that is not a business combination does not affect accounting
profit or taxable income (or deductible loss) at the time of the transaction and the initial recognition of assets and liabilities results
in an equal amount of taxable temporary difference and deductible temporary difference (including a lease transaction in which the
lessee initially recognizes the lease liability on the beginning date of the lease term and credits the right to use assets) As well as
due to the existence of fixed assets and other disposal obligations to recognize the projected liabilities and include the cost of the
relevant assets hereinafter referred to as the single transaction applicable to this interpretation) does not apply to the Accounting
Standards for Business Enterprises 18 - Income tax Article 11 (2) 13 on the exemption of the initial recognition of deferred
income tax liabilities and deferred income tax assets provisions. For the taxable temporary differences and deductible temporary
differences arising from the initial recognition of assets and liabilities of the transaction the enterprise shall recognize the
corresponding deferred income tax liabilities and deferred income tax assets respectively at the time of the transaction in
accordance with the relevant provisions of Accounting Standard for Business Enterprises No. 18 - Income Tax. The Company has
retroactively adjusted the comparative accounting statements and cumulative impact figures based on the above accounting policy
changes resulting in the following impacts:
Content and reason of changes to
accounting policies Statement Name and amount of statement item materially affected
On December 31 2022 the impact of deferred tax assets is
RMB24500761.16 the impact of deferred tax liabilities is
Consolidated balance RMB22737325.56 the impact of surplus reserves is
At the initiation of the lease sheets RMB5970.29 the impact of retained earnings is
transaction the lessee acknowledges RMB1697650.08 and the impact of minority interest is
the lease liability and incorporates the RMB59815.23.right-of-use asset without exempting
the initial recognition of deferred tax consolidated income The impact of income tax expense is RMB330314.64 in
liabilities and assets resulting in the statement 2022.recognition of the respective deferred On December 31 2022 the impact of deferred tax assets is
tax liabilities and deferred tax assets at
Balance sheet of the RMB869290.80 the impact of deferred tax liabilities isthe transaction occurrence.Company as the Parent RMB809587.96 the impact of surplus reserves isRMB5970.29 and the impact of retained earnings is
RMB53732.55.Income statement of the
Company as the Parent The impact of income tax expense is RMB2195.78 in 2022.
72ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Content and reason of changes to
accounting policies Statement Name and amount of statement item materially affected
On December 31 2022 the impact of deferred tax assets is
RMB24500761.16 the impact of deferred tax liabilities is
Consolidated balance RMB22737325.56 the impact of surplus reserves is
At the initiation of the lease sheets RMB5970.29 the impact of retained earnings is
transaction the lessee acknowledges RMB1697650.08 and the impact of minority interest is
the lease liability and incorporates the RMB59815.23.right-of-use asset without exempting
the initial recognition of deferred tax consolidated income The impact of income tax expense is RMB330314.64 in
liabilities and assets resulting in the statement 2022.recognition of the respective deferred On December 31 2022 the impact of deferred tax assets is
tax liabilities and deferred tax assets at
the transaction occurrence. Balance sheet of the
RMB869290.80 the impact of deferred tax liabilities is
Company as the Parent RMB809587.96 the impact of surplus reserves isRMB5970.29 and the impact of retained earnings is
RMB53732.55.Income statement of the
Company as the Parent The impact of income tax expense is RMB2195.78 in 2022.VII YoY Changes to the Scope of the Consolidated Financial Statements
□Applicable □ Not applicableFor the detailed changes to the scope of the Company’s consolidated statements of the Reporting Period see “Part X FinancialStatements” IX Changes to the Scope of the Consolidated Financial Statements.VIII Engagement and Disengagement of Independent Auditor
Current independent auditor:
Name of the domestic independent auditor Baker Tilly China Certified Public Accountants (LLP)
The Company’s payment to the domestic independent auditor
(RMB’0000) 95
How many consecutive years the domestic independent auditor
has provided audit service for the Company 4 years
Names of the certified public accountants from the domestic
independent auditor writing signatures on the auditor’s report Chen Zihan Zhong Qinfang
How many consecutive years the certified public accountants
have provided audit service for the Company Four years for Chen Zihan two years for Zhong Qinfang
Indicate by tick mark whether the independent auditor was changed for the Reporting Period.□Yes□ No
Independent auditor financial advisor or sponsor engaged for the audit of internal controls:
□Applicable □ Not applicable
In this Reporting Period the Company engaged Baker Tilly China Certified Public Accountants (LLP) for its internal control audit
and paid an internal control audit fee of RMB0.2 million to it for the period.IX Possibility of Delisting after Disclosure of this Report
□Applicable□ Not applicable
73ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
X Insolvency and Reorganization
□Applicable□ Not applicable
No such cases in the Reporting Period.XI Major Legal Matters
□Applicable □ Not applicable
Involv
ed
amoun
General information t Provis Progress Decisions and effects Execution of Disclosure
Index to
(RMB ion decisions date
disclosed
information
’0000
)
Arbitration awards on two cases
were given on 23 and 24 March
2023 successively. According to
As a result of
Arbitration case of property the conclusion of arbitration
the turnover in
contract dispute between awards the High-tech Zone
the owners'
the Fourth Owners' Branch should return
committee
Committee of Shenzhen approximately RMB540000 of
the new
Nanshan District Software public revenue to the Owners'
committee has
Park (Applicant) and Committee of Shenzhen
not been
Shenzhen ITC Technology Nanshan District Software Park
formed yet
Park Service Co. Ltd. (in spite of RMB32 million
and there is no
(Respondent 1) the Branch 73.53 Not Closed requested by the Owners'
corporate
in High-Tech Zone Committee) and bear a part of
account.(Respondent 2) for arbitration fee; in regard to the
Discussions
Software Park Phase I. The arbitration case between the
have taken
Applicant requested an ITC Technology Park Company
place with the
award to the Respondent 1 and the Owners' Committee of
court leading
and 2 to return the owners' Shenzhen Nanshan District
to a temporary
public revenue and bear the Software Park all requests of
suspension of
attorney's fees. the latter have been rejected by
payment.the arbitration tribunal (in spite
of RMB13 million requested by
the Owners' Committee).Shenzhen Qitian Sunshine
Hotel Management Co.Ltd. (plaintiff) sued
ShenZhen Properties &
Resources Development
(Group) Ltd. (defendant) for Shenzhen
property leasing contract Qitian
dispute requesting the Sunshine The court of second instance
defendant to pay 105.0 Hotel has rejected the appeal request Enforcement
Not
compensation for interior 9 Managem of Qitian Sunshine Hotel and retrial process
decoration of the relocated ent Co. upheld the original verdict
house and relocation fee of Ltd. filed
the leased house and to a retrial.return the subsidy fee of the
leased house etc. The first
instance judgment reads
that the plaintiff Shenzhen
Qitian Sunshine Hotel
74ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Management Co. Ltd. shall
pay rent of
RMB1050913.6 to the
defendant ShenZhen
Properties & Resources
Development (Group) Ltd.within 10 days from the
effective date of this
judgment. The second-
instance court rejected the
appeal from Qitian Hotel
upheld the original verdict
and Qitian Hotel has now
applied for retrial.Since the violation of the
Equity Transfer Contract
for the Urban Renewal
Project in Bangling
Community Guanlan
The case
Subdistrict Longhua
was heard
District Shenzhen City
at
committed by the Shenzhen
Shenzhen
Xinhai Rongyao Real Estate
Court of
Development Co. Ltd.Internatio
constituted material breach
nal
of contract according to
1713 Arbitratio
provisions of the contract Not Not yet Not yet
3.68 n on 14
the Company is entitled to
December
require Shenzhen Xinhai
2023 and
Rongyao Real Estate
is
Development Co. Ltd. to
currently
pay compensation for its
waiting
investment loss at an annual
for the
interest rate of 11% of the
decision.capital the Company
invested in the Lanhu
Shidai project. Therefore
the Company filed an
arbitration.On 26 February 2019 the The case
Company signed now
Repayment Agreement with enters the
Rongyao Real Estate stage of For details
Shenzhen Xinhai Rongyao appointing please refer to
Real Estate Development arbitrator the
Co. Ltd. and Shenzhen to set up Announcemen
Xinhai Holding Co. Ltd. arbitral t on Major
For details see 7221 tribunal. Arbitration of
Not Not yet Not yet 9 June 2023
Announcement on the 8.22 Afterward Subsidiary
Signing of Repayment the (No.: 2023-
Agreement (Announcement responden 13) disclosed
No.: 2019-9) disclosed by t filed an by the
the Company on appeal for Company on
http://www.cninfo.com.cn. confirmati Cninfo.According to provisions of on of
the Repayment Agreement force of
Shenzhen Xinhai Rongyao the
75ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Real Estate Development arbitration
Co. Ltd. and Shenzhen agreement
Xinhai Holding Co. Ltd. to the
acknowledge to settle their Shenzhen
debts to Rongyao Real Intermedi
Estate. However Shenzhen ate
Xinhai Investment People's
Development Co. Ltd. Court
Shenzhen Chengjian Real resulting
Estate Management Co. in the
Ltd. Shenzhen Lianghong suspensio
Industry Co. Ltd. and n of the
Shenzhen Huaye Tiancheng arbitration
Investment Co. Ltd. as court's
their guarantors who trial on
assume joint and several the case.liability failed to settle all After the
debts as required by the confirmati
agreement. Therefore on of
Rongyao Real Estate filed force of
an arbitration. the
arbitration
agreement
is
concluded
by the
court the
arbitration
court will
inform
both
parties of
the
recovery
of the
arbitration
proceedin
gs.See
Part X
See Part X See Part X
Financ
Summary of other contract Financial See Part X Financial Report- Financial
9681 ial
disputes Report- XVI -2 Report- XVI -
Report
XVI -2 2
-XVI-
2
XII Punishments and Rectifications
□Applicable□ Not applicable
No such cases in the Reporting Period.XIII Credit Quality of the Company as well as Its Controlling Shareholder and Actual
Controller
□Applicable□ Not applicable
76ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
XIV Major Related-Party Transactions
1. Continuing Related-Party Transactions
□Applicable □ Not applicable
As % of Appro Obtai
Relati total ved Over nable
onship Type Specif Pricin marke
Related with of ic g Transa
Total value of transa the Metho
value all ction appro d of t price Disclosur Index to
party the transa transa princi ction (RMB’0 same- line ved settle for e date disclosed
Comp ction ction ple price 000) type (RMB line or ment same- information
any transacti ’0000 not type
ons ) transactions
Relate
d-
Wholl party
y- transactions
Shenzhen owned gover Proper
Proper Proper
Bay subsid ning ty
ty ty
25 March
Technology iary of sales manag manag manag 6904. 7892.7892.39 5.00% Yes Cash 2023
Developme the of ement ement ement 25 39
nt Co. Ltd. Comp comm servic servic servicany as es
the odity es es
parent andprovid
ing of
labors
Relate
d-
party Proper
Sub- transa ty
subsid ctions manag Proper Proper
Hebei Announcemen
iary of gover ement ty ty
Shenbao ning 25 March t on Estimatedthe sales servic manag manag 3574. 4016.Investment 4016.66 2.54% Yes Cash 2023 Continuing
Comp of es and ement ement 01 66Developme Related-party
any as comm engine servic servicnt Co. Ltd. Transactions
the odity ering es es in 2023 (No.:
parent and servic 2023-05)
provid es
ing of disclosed on
labors Cninfo
Relate
d-
Wholl party
y- transa
Shenzhen owned
ctions
Bay subsid
gover Mana Marke
iary of ning gemen t Agree
25 March
Technology purcha t 6248.the princi ment 6248.1 4.74% 8160 No Cash 2023Developme Comp se of servic ple price
nt Co. Ltd. any as comm es
the odity
parent andprovid
ing of
labors
Shenzhen Wholl Truste Marke Agree 25 MarchShentou y- Truste e t 6361. 6164.Real Estate owned eship manag princi ment 6164.06 40.59% No Cash 2023price 61 06Developme subsid ement ple
77ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
nt Co.Ltd. iary of servic
the es of
Comp houses
any as
the
parent
24321.22499
Total -- -- -- -- -- -- -- --
19.87
Large-amount sales return in detail N/A
The total amount of daily related-party transactions of the Company in 2023 is expected to be
RMB342640300 and the actual total amount is RMB381397000. In predicting the routine related party
Give the actual situation in the Reporting transactions for the year 2023 the Company primarily considered market conditions and the business needs
Period (if any) where an estimate had
been made for the total value of of both parties to estimate potential transaction amounts. The actual figures might deviate due to factors like
continuing related-party transactions by the development of both entities' businesses actual requirements and specific execution timelines. Such
type to occur in the Reporting Period discrepancies were deemed normal business conduct and were not expected to have a significant impact on
the Company's routine operations or financial results. For more details see the Announcement on Estimated
Continuing Related-party Transactions in 2024 released on the same date as this report.Reason for any significant difference
between the transaction price and the N/A
market reference price (if applicable)
2. Related-Party Transactions Regarding Purchase or Sales of Assets or Equity Interests
□Applicable□ Not applicable
No such cases in the Reporting Period.
3. Related-Party Transactions Regarding Joint Investments in Third Parties
□Applicable□ Not applicable
No such cases in the Reporting Period.
4. Credits and Liabilities with Related Parties
□Applicable □ Not applicable
Indicate by tick mark whether there were any credits and liabilities with related parties for non-operating purposes.□Yes □ No
Receivable from related parties
Capital Amount Amount
Relations occupatio Beginnin newlyadded in received Current EndingRelated hip with n for non- g balance in current Interest interest balance
party the Reason operating (RMB’00 currentperiod period rate (RMB’00 (RMB’00Company purposes 00) (RMB’00 (RMB’00 00) 00)(yes/no) 00) 00)
The
parent
company
of the Business
Shenzhen subsidiary circulatin
Xinhai Rongyao g funds
Holdings Real before No 20150 20150
Co. Ltd. Estate’s acquisitio
minority n
sharehold
er Xinhai
Rongyao
Shenzhen Minority Business No 33047.29 33047.29
78ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Xinhai sharehold circulatin
Rongyao er of the g funds
Real subsidiary before
Estate Rongyao acquisitio
Develop Real n
ment Co. Estate
Ltd.Influence on the
Company’s operating All were within the risks control of the Company and not influenced the operating results and the
results and financial financial conditions.condition
Liabilities payable to related parties
Amount
newly Amount
Related Relation
Beginning returned in Current
with the Formation balance
added in Ending
party reason (RMB’000 current
current
period Interest rate
interest balance
Company period (RMB’0000) (RMB’000 (RMB’000 0)
(RMB’000
0)0)
0)
Shenzhen
Jifa Joint ventur Intercourse
Warehouse e funds 4229.67 4229.67
Co. Ltd.Shenzhen
Tian’an
Internation
al Building Joint ventur Intercourse
Property e funds
521.43521.43
Manageme
nt Co. Ltd.Influence on the
Company’s operating All were within the risks control of the Company and not influenced the operating results and the
results and financial financial conditions.condition
5. Transactions with Related Finance Companies
□Applicable□ Not applicable
The Company did not make deposits in receive loans or credit from and was not involved in any other finance business with any
related finance company or any other related parties.
6. Transactions with Related Parties by Finance Companies Controlled by the Company
□Applicable□ Not applicable
The finance company controlled by the Company did not make deposits receive loans or credit from and was not involved in any
other finance business with any related parties.
7. Other Major Related-Party Transactions
□Applicable□ Not applicable
No such cases in the Reporting Period.
79ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
XVMajor Contracts and Execution thereof
1. Entrustment Contracting and Leases
(1) Entrustment
□Applicable□ Not applicable
No such cases in the Reporting Period.
(2) Contracting
□Applicable□ Not applicable
No such cases in the Reporting Period.
(3) Leases
□Applicable□ Not applicable
No such cases in the Reporting Period.
2. Major guarantees
□Applicable □ Not applicable
Unit: RMB'0000
Guarantees provided by the Company as the parent and its subsidiaries for external parties (exclusive of those for subsidiaries)
Disclosu
re date Guarante
of the Line of Actual Actualguarante Type of CounterCollatera Term of Having e for aObligor guarante guarante occurren e guarante guarante guarante expired relatede line e ce date l (if any)amount e e (if any) e or not party orannounc not
ement
Guarantees provided by the Company for its subsidiaries
Disclosu
re date
of the Line of Actual Actual
Guarante
Counter
guarante Type of Collatera Term of Having e for aObligor guarante guarante occurren e guarante guarante guarante expired relatede line e ce date l (if any)
announc amount
e e (if any) e or not party or
not
ement
Shenzhe
n
Rongyao 2019.11.18 27 EquityReal
Estate October
Joint- 27-
500000 Novemb 321812 land use No Yes
2019 liability 2026.3.1Develop er 2019 right 7
ment
Co. Ltd.Total approved line Total actual amount
for such guarantees of such guarantees in
in the Reporting the Reporting Period 21892.77
Period (B1) (B2)
Total approved line 500000 Total actual balance 321811.77
80ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
for such guarantees of such guarantees at
at the end of the the end of the
Reporting Period Reporting Period
(B3) (B4)
Guarantees provided between subsidiaries
Disclosu
re date Actual Guaranteof the Line of Actual Type of Counter Term of Having e for a
Obligor guarante guarante occurren guarante guarante Collatera guarante guarante expired related
e line e ce date e e l (if any)amount e (if any) e or not party orannounc not
ement
Total guarantee amount (total of the three kinds of guarantees above)
Total guarantee line Total actual
approved in the guarantee amount in
Reporting Period the Reporting Period 21892.77
(A1+B1+C1) (A2+B2+C2)
Total approved Total actual
guarantee line at the guarantee balance at
end of the Reporting 500000 the end of the 321811.77
Period (A3+B3+C3) Reporting Period(A4+B4+C4)
Total actual guarantee amount (A4+B4+C4)
69.03%
as % of the Company’s net assets
Of which:
Balance of debt guarantees provided directly
or indirectly for obligors with an over 70% 321811.77
debt/asset ratio (E)
Total of the three amounts above (D+E+F) 321811.77
Compound guarantees:
3. Cash Entrusted to Other Entities for Management
(1) Cash Entrusted forWealth Management
□Applicable□ Not applicable
No such cases in the Reporting Period.
(2) Entrusted Loans
□Applicable□ Not applicable
No such cases in the Reporting Period.
4. Other Major Contracts
□Applicable□ Not applicable
No such cases in the Reporting Period.
81ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
XVI Other Significant Events
□Applicable □ Not applicable
(1) Matters on the Public Listing Transfer of 100% Equity of Wholly-owned Subsidiary Shenzhen Jinghengtai Real Estate
Development Co. Ltd.During the Reporting Period the 21st meeting of the 10th Board of Directors and the first extraordinary general meeting of
shareholders in 2023 deliberated and approved the Proposal on the Public Listing Transfer of 100% Equity of Wholly-owned
Subsidiary Shenzhen Jinghengtai Real Estate Development Co. Ltd. which authorized the public listing transfer of 100% equity
of Shenzhen Jinghengtai Real Estate Development Co. Ltd. (hereinafter referred to as "Jinghengtai Company") on the Shenzhen
United Equity Exchange. On 22 December 2023 Jinghengtai Company received the Registration Notice issued by the Shenzhen
Market Supervision Administration. The business registration procedures related to this equity transfer transaction have been
completed transferring 100% equity of Jinghengtai Company to Hualian Holdings. The Company no longer holds any equity in
Jinghengtai Company. For details see the Announcement on the Public Listing Transfer of 100% Equity of Wholly-owned
Subsidiary Shenzhen Jinghengtai Real Estate Development Co. Ltd. (Announcement No.: 2023-28) the Announcement on
Progress of the Public Listing Transfer of 100% Equity of Wholly-owned Subsidiary Shenzhen Jinghengtai Real Estate
Development Co. Ltd. (Announcement No.: 2023-31) and the Announcement on Progress of the Public Listing Transfer of 100%
Equity of Wholly-owned Subsidiary Shenzhen Jinghengtai Real Estate Development Co. Ltd. (Announcement No.: 2023-37)
issued by the Company on www.cninfo.com.cn.XVII Significant Events of Subsidiaries
□Applicable□ Not applicable
82ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Part VII Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
Before Increase/decrease (+/-) After
Shares Shares as
as dividend
Percenta New dividend converted Subtot Percentage
Shares Other Shares
ge (%) issues converte from al (%)
d from capital
profit reserves
1. Restricted shares 1898306 0.32% 0 0 0 0 0 1898306 0.32%
1.1 Shares held by
the state 0 0.00% 0 0 0 0 0 0 0.00%
1.2 Shares held by
state-own Legal- 3326 0.00% 0 0 0 0 0 3326 0.00%
person
1.3 Shares held by
other domestic 1894980 0.32% 0 0 0 0 0 1894980 0.32%
investors
Among which:
shares held by
domestic legal 1894980 0.32% 0 0 0 0 0 1894980 0.32%
person
Shares held by
domestic natural 0 0.00% 0 0 0 0 0 0 0.00%
person
1.4 Oversea
shareholdings 0 0.00% 0 0 0 0 0 0 0.00%
Among which:
shares held by
oversea legal 0 0.00% 0 0 0 0 0 0 0.00%
person
Shares held by
oversea natural 0 0.00% 0 0 0 0 0 0 0.00%
person
2. Unrestricted
shares 594080786 99.68% 0 0 0 0 0 594080786 99.68%
2.1 RMB ordinary
shares 526475543 88.34% 0 0 0 0 0 526475543 88.34%
2.2 Domestically
listed foreign shares 67605243 11.34% 0 0 0 0 0 67605243 11.34%
2.3 Oversea listed
foreign shares 0 0.00% 0 0 0 0 0 0 0.00%
2.4 Other 0 0.00% 0 0 0 0 0 0 0.00%
3. Total shares 100.00595979092 0 0 0 0 0 595979092 100.00%
%
Reasons for share changes:
□ Applicable□ Not applicable
Approval of share changes:
□ Applicable□ Not applicable
Transfer of share ownership:
83ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
□ Applicable□ Not applicable
Effects of share changes on the basic and diluted earnings per share equity per share attributable to the Company’s ordinary
shareholders and other financial indicators of the prior year and the prior accounting period respectively:
□ Applicable□ Not applicable
Other information that the Company considers necessary or is required by the securities regulator to be disclosed:
□Applicable □ Not applicable
The Company received notification from Shenzhen Investment Holdings Co. Ltd. ("SIHC ") the controlling shareholder of the
Company that due to the execution of a court judgment 1730300 restricted shares of the Company held by Shenzhen Duty-Free
Commodity Enterprises Co. Ltd. had been transferred to the name of SIHC. The number of shares of the Company held by SIHC
and its concert parties increased from 339452527 shares (representing 56.957% of the total share capital of the Company) to
341182827 shares (representing 57.247% of the total share capital of the Company). For details please refer to the
Announcement on the Change of Controlling Shareholders' Equity (No. 2024-04) disclosed by the Company on 6 March 2024 on
Cninfo.
2. Changes in Restricted Shares
□Applicable□ Not applicable
II. Issuance and Listing of Securities
1. Securities (Exclusive of Preferred Shares) Issued in the Reporting Period
□Applicable□ Not applicable
2. Changes to Total Shares Shareholder Structure and Asset and Liability Structures
□Applicable□ Not applicable
3. Existing Staff-Held Shares
□Applicable□ Not applicable
III Shareholders and Actual Controller
1. Shareholders and Their Shareholdings at the Period-End
Unit: share
Number of
ordinary Number of
shareholder preferred Number of preferred
s at the shareholders shareholders with resumed
Number of ordinary
41547 month-end 40432 with 0 voting rights at the month-end 0
shareholders
prior to the resumed prior to the disclosure of this
disclosure voting rights Report (if any)
of this (if any)
Report
5% or greater shareholders or top 10 shareholders (Excluding those who lend shares through refinancing)
Name of shareholder Nature ofshareholder Shareholdi Total shares Increase/dec
Restricted Unrestricted Shares marked in pledge
shares held shares held or frozen
84ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
ng held at the rease in the
percentage period-end Reporting Status Shares
Period
State-
Shenzhen Investment owned
Holdings Co. Ltd. legal 50.57% 301414637 0 3326 301411311
person
Shenzhen State- Domestic
owned Equity non-state-
Management Co. owned 6.38% 38037890 0 0 38037890
Ltd. legalperson
China Orient Asset State-
Management Co. owned 2.77% 16491402 0 0 16491402
Ltd. legalperson
Hong Kong Foreign
Securities Clearing legal 0.58% 3469347 2496834 0 3469347
Company Ltd. person
Domestic
Duan Shaoteng natural 0.30% 1760565 5000 0 1760565
person
Domestic
Shenzhen Duty-Free non-state-
Commodity owned 0.29% 1730300 0 1730300 0
Enterprises Co. Ltd. legal
person
Domestic
Yang Yaochu natural 0.28% 1690984 50000 0 1690984
person
Industrial and
Commercial Bank of
China Limited－
Southern China
Securities Full Index Other 0.27% 1638834 527300 0 1638834
Real Estate Trading
Open-ended Index
Securities Investment
Fund
Domestic
Wang Zhong natural 0.27% 1580000 1580000 0 1580000
person
Domestic
Li Xinyi natural 0.25% 1500000 0 0 1500000
person
Strategic investor or general legal
person becoming a top-10 ordinary
shareholder due to rights issue (if N/A
any)
Related or acting-in-concert parties The largest shareholder Shenzhen Investment Holdings Co. Ltd. is the controlling shareholder of the
among the shareholders above Company and Shenzhen State-owned Equity Management Co. Ltd. And the Company does not know whetherthere are related parties or acting-in-concert parties among the other shareholders.Explain if any of the shareholders
above was involved in
entrusting/being entrusted with N/A
voting rights or waiving voting
rights
Special account for share
repurchases (if any) among the top N/A
10 shareholders
Top 10 unrestricted shareholders
85ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Shares by type
Name of shareholder Unrestricted shares held at the period-end
Type Shares
Shenzhen Investment Holdings Co. RMB common
Ltd. 301411311 share 301411311
Shenzhen State-owned Equity RMB common
Management Co. Ltd. 38037890 share 38037890
China Orient Asset Management RMB common
Co. Ltd. 16491402 share 16491402
Hong Kong Securities Clearing RMB common
34693473469347
Company Ltd. share
Duan Shaoteng 1760565 RMB commonshare 1760565
Domestically
Yang Yaochu 1690984 listed foreign 1690984
share
Industrial and Commercial Bank of
China Limited－Southern China RMB common
Securities Full Index Real Estate 1638834 share 1638834
Trading Open-ended Index
Securities Investment Fund
RMB common
Wang Zhong 1580000 share 1580000
Li Xinyi 1500000 RMB commonshare 1500000
Domestically
Mai Furong 1244596 listed foreign 1244596
share
Related or acting-in-concert parties
among top 10 unrestricted public The largest shareholder Shenzhen Investment Holdings Co. Ltd. is the controlling shareholder of the
shareholders as well as between top Company and Shenzhen State-owned Equity Management Co. Ltd. And the Company does not know whether
10 unrestricted public shareholders there are related parties or acting-in-concert parties among the other shareholders.
and top 10 shareholders
Top 10 ordinary shareholders
involved in securities margin N/A
trading (if any)
Top 10 shareholders involved in refinancing business through lending shares
□ Applicable□ Not applicable
Change in Top 10 shareholders compared with the last period
□Applicable □ Not applicable
Unit: share
Change in Top 10 shareholders compared with last period
Shares held by shareholders
through their general accounts
Shares lent for refinancing
and credit accounts and
Add/exit in and not returned yet at the Shares lent for refinancing
Name of shareholders (full name) the Reporting period-end and not returned yet at the
Period period-end
% of total % of total
Total amount Total amount
share capital share capital
Hong Kong Securities Clearing Company Ltd. Add 0 0.00% 3469347 0.58%
Industrial and Commercial Bank of China
Add 0 0.00% 1638834 0.27%
Limited－Southern China Securities Full
86ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Index Real Estate Trading Open-ended Index
Securities Investment Fund
Wang Zhong Add 0 0.00% 1580000 0.27%
Mai Furong Exit 0 0.00% 1244596 0.21%
CITIC Securities Company Limited Exit 0 0.00% 1038364 00.17%
Shenzhen Hengbang Zhaofeng Private Equity
Fund Management Co. Ltd.-Hengbang
Exit 0 0.00% 0 0.00%
Xiangshang Win-Win Growth No.1 Private
Equity Investment Fund
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the
Company conducted any promissory repo during the Reporting Period.□ Yes□ No
No such cases in the Reporting Period.
2. Controlling Shareholder
Nature of the controlling shareholder: Controlled by a local state-owned legal person
Type of the controlling shareholder: legal person
Legal
Name of controlling representative/ Date of Unified social credit
shareholder person in establishment code Principal activity
charge
To execute investments and M&A
on financial equity such as banks
securities insurance funds and
guarantees and pseudo-banking
equity; to engage in the property
development and operation business
within the scale of legally acquire
the land use right; to execute
investments and services in
strategic emerging industry; to
execute the investment operating
Shenzhen Investment and management of the state-owned
Holdings Co. Ltd. He Jianfeng 13 October 2004 914403007675664218 equities of the wholly-ownedcontrolling and stock-participating
enterprises through the methods
such as the restructuring
integration capital operation and
assets disposal; other business
developed with the authority from
the Municipal State-owned Assets
Supervision and Administration
Commission (if the activity needs
approval as required by state
regulations it shall not be operated
until it is approved).Shareholdings of the Other listed companies at home or abroad in this Reporting Period controlled by the Company’s
controlling shareholder controlling shareholder including: Shenzhen Textile A (000045) SPG A (000029) Shenzhen Universe
in other listed A (000023) Ping’an (601318) Guosen Securities (002736) Guotai Jun’an (601211) Telling
companies at home or Telecommunication (000829) International (00152) Beauty Star (002243) Bay Area Development
abroad in this (00737) Infinova (002528) Eternal Asia (002183) Shenzhen Energy (000027) Bank of
Reporting Period Communications (601328) Techand (300197) Vanke (02202) etc.Change of the controlling shareholder in the Reporting Period:
□ Applicable□ Not applicable
The controlling shareholder remained the same in the Reporting Period.
87ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
3. Actual Controller and Its Acting-in-Concert Parties
Nature of the actual controller: local institution for state-owned assets management
Type of the actual controller: legal person
Legal
Name of actual representative/ Unified social
controller person in Date of establishment credit code Principal activity
charge
(I) Implementing and practicing state
provincial and municipal laws and
regulations related to management on
state-owned assets drafting local
laws regulations and policies about
management on state-owned assets
and organizing implementation
activities upon approvals. Intending
to draft supervision systems and
methods about operational state-
owned assets and organizing
implementation activities.(II) On the basis of authorization from
municipal government fulfilling
duties of investors according to laws
and regulations and protecting the
rights and interests of investors for
state-owned assets according to laws
(III) Taking charge of Party-building
work for enterprises in its supervision
and organs entrusted
(IV) Undertaking the supervision over
state-owned assets of municipal
enterprises strengthening
management on state-owned assets
Shenzhen Municipal further perfecting the management
State-owned Assets mechanism for state-owned assets
Supervision and Wang Yongjian 1 July 2004 11440300K31728 with the unification of power
Administration 0672 obligation and duties as well as the
Commission combination of managing assetspeople and affairs
(V) Being responsible for hedging
and appreciation of the value of state-
owned assets of enterprises in its
supervision establishing and
perfecting the index system for
hedging and appreciation of the value
of state-owned assets setting out
assessment standards supervising on
hedging and appreciation of the value
of state-owned assets of enterprises in
its supervision by statistics audit and
check and urging enterprises in its
supervision to fulfill social duties
(VI) In charge of researching and
preparing the general planning for
transformation and development of
state-owned enterprise in its
supervision guiding and boosting
transformation and re-organization of
state-owned enterprises prompting
the construction of modern enterprise
system carrying forward operation of
state-owned capital pushing the
strategic adjustment on state-owned
economy layout and structure and
88ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
making state-owned capital play the
role in significant industries and key
fields including national security
national economy lifeline etc.(VII) Directing and propelling
enterprises in its supervision to
perfect company governance
structure intensifying construction of
Board and Supervision Committees of
enterprises in its supervision and
forming the governance mechanism
with specific duties coordinating
operation and effective
counterbalance
(VIII) Assuming the management
work of income distribution for
enterprises in its supervision and
standardizing the income distribution
and position-related consumption
over people in charge of enterprises in
its supervision
(IX) In line with rules of municipal
Party committee appointing and
dismissing appraising as well as in
accordance with business
performance rewarding and
punishing people in charge of
enterprises in its supervision by
applying legal procedures
establishing the mechanism of
selecting and choosing candidates
meeting the requirements of socialist
market economy system and modern
enterprise system and perfecting the
incentive and control system for
operators
(X) Being responsible for appointing
or recommending board directors
supervisors CFOs to enterprises in its
supervision and auditing on
economic duties of people in charge
of enterprises in its supervision
according to rules about management
authorization to people in charge of
enterprises
(XI) In charge of preparing the draft
of budgets and final accounts of
annual state-owned capital of
enterprises in its supervision
including it to the government budget
system organizing the execution
upon approvals and collecting
earnings of state-owned capital
handed in by enterprises in its
supervision
(XII) In charge of strategy research
policy formulation and guidance for
transformation development and
asset management related to
collectively-owned enterprises
(XIII) Assuming other assignments
assigned by municipal government
and superior departments
Shareholdings of the
actual controller in Listed companies such as the Shenzhen Airport YTP Shenzhen Energy Shenzhen Zhenye Shenzhen
other listed companies Tagen and SDGI.at home or abroad in
89ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
this Reporting Period
Change of the actual controller in the Reporting Period
□ Applicable□ Not applicable
The actual controller remained the same in the Reporting Period.Ownership and control relations between the actual controller and the Company:
Indicate by tick mark whether the actual controller controls the Company via trust or other ways of asset management.□ Applicable□ Not applicable
4. Number of Accumulative Pledged Shares held by the Company’s Controlling Shareholder or the
Largest Shareholder as well as Its Acting-in-Concert Parties Accounts for 80% of all shares of the
Company held by Them
□Applicable□ Not applicable
5. Other 10% or Greater Corporate Shareholders
□Applicable□ Not applicable
6. Limitations on Shareholding Decrease by the Company’s Controlling Shareholder Actual Controller
Reorganizer and Other Commitment Makers
□Applicable□ Not applicable
IV Specific Implementation of Share Repurchase during the Reporting Period
Progress on any share repurchase
□ Applicable□ Not applicable
Progress on reducing the repurchased shares by means of centralized bidding
□ Applicable□ Not applicable
90ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Part VIII Preference Shares
□Applicable□ Not applicable
No preference shares in the Reporting Period.
91ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Part IX Bonds
□Applicable□ Not applicable
92ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Part X Financial Statements
I. Auditor’s Report
Type of the independent auditor’s opinion Unmodified unqualified opinion
Date of signing this report 29 March 2024
Name of the independent auditor Baker Tilly China Certified Public Accountants (LLP)
Reference number of Audit Report Baker Tilly YZ[2024]No. 20153
Name of the certified public accountants Chen Zihan Zhong Qinfang
Text of the Auditor’s Report
Baker Tilly YZ[2024]No. 20153
All shareholders of Shenzhen Properties & Resources Development (Group) Ltd.:
1. Opinion
We have audited the financial statements of Shenzhen Properties & Resources Development (Group) Ltd. (the “Company”) which
comprise the consolidated and parent company balance sheets as of 31 December 2023 the consolidated and parent company
statements of income cash flows and changes in shareholders’ equity for the year then ended as well as the notes to the financial
statements.In our opinion the financial statements referred to above present fairly in all material respects the consolidated and parent company
financial position of the Company at 31 December 2023 and the consolidated and parent company operating results and cash flows
for the year then ended in conformity with the Chinese Accounting Standards (CAS).
2. Basis for Opinion
We conducted our audits in accordance with the Audit Standards for Chinese Registered Accountants. Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for Audit of Financial Statements section of our report. We are
independent of the Company in accordance with the China Code of Ethics for Certified Public Accountants and we have fulfilled our
other ethical responsibilities in accordance with the said Code of Ethics. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
3. Key audit items
Key audit items are the items that are considered most important for the audit of the current financial statements based on our
professional judgment. The response to these items is based on the audit of the financial statements as a whole and the formation of
audit opinions. We do not comment on these items separately.Key audit item Audit response
1. Recognition and measurement of revenue from real estate development and sales
93ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Key audit item Audit response
SZPRD achieved a revenue of RMB1.235 billion from real Our audit procedures for this key audit issue include:
estate development projects in 2023 accounting for Understanding and sampling key control measures related to
41.64% of the total operating revenue. SZPRD confirms property sales business to evaluate the effectiveness of
revenue from real estate development projects when all the implementation of control procedures.following conditions are met: (1) Real estate products of Obtaining and reviewing completion acceptance documents of
sales contracts under development are completed and projects; reviewing property sales contracts and verifying the
accepted; (2) Irreversible sales contracts are signed and authenticity of revenue from property sales recognized in this
buyers’ payment certificates are received; (3) Notice of year; checking original collection certificates or certificates of
property acceptance is issued. bank mortgage procedures to determine whether full payment
The recognition and measurement of revenue from real amount is received; reviewing admission notice or other
estate business has a significant impact on the operating supporting documents on delivery of properties to evaluate
results of SZPRD which may be inaccurately measured or whether revenue from property sales meets the conditions for
recognized in improper accounting period. Therefore we revenue recognition as stipulated by the Company’s
regard the recognition and measurement of real estate accounting policy.development and sales revenue as key audit issues. Obtaining and reviewing supporting documents for property
For accounting policies and details of revenue from real delivery before and after the balance sheet date to evaluate
estate development and sales please refer to Note III (39) whether revenue from property sales is recorded in proper
VI (39) to the financial statement. accounting period.
2. Assessment of the net realizable value of inventory
As of 31 December 2023 the total amount of inventory
including development costs developed products and land
intended for development (referred to as "inventory") had a
carrying value of RMB11090 million accounting for The primary procedures we conducted for assessing the net
65.32% of the total assets. The inventory is measured at a realizable value of inventory are outlined below:
lower cost and net realizable value. (1) We will assess the design and operating effectiveness of
The management determines the net realizable value of each key internal controls related to management's preparation of
inventory item as of the balance sheet date. In the assessment budgets and forecasts for construction and other costs
of the net realizable value of inventory the management is associated with each inventory item;
required to make the best estimates of the construction costs (2) Based on sampling we will conduct first-hand
that will be incurred when each planned and under- observation of inventory items inquire about the progress of
construction development product reaches completion and these inventory projects with management and assess the
also estimate the expected future net selling price of each total development cost budget reflected in the latest forecasts
inventory item and future selling expenses including related for each project. We will compare the costs incurred as of 31
sales taxes. This process involves significant management December 2023 with the budget to evaluate the accuracy of
judgment and estimation. management's forecasts and the budgeting process;
Due to the significance of inventory as a key asset of the (3) The valuation methods utilized by management will be
Company and considering the inherent risks associated with assessed and the key estimates and assumptions used in the
estimating the construction costs that will be incurred upon valuation including those pertaining to the average net
the completion of inventory items and the future net selling selling price will be compared with market-available data
prices especially in light of the various measures introduced and Shenzhen Property Group's sales budget plan; and
in response to the real estate market across different cities in (4) The work results of third-party experts will be utilized to
the current economic environment we have identified the assess the competence and objectivity of the third-party
assessment of the net realizable value of Shenzhen Property experts and the appropriateness and reasonableness of the
Group's inventory as a key audit matter. original data key estimates and assumptions key parameters
Please refer to the notes to the financial statements "III. and valuation calculation process used by the third-party
Significant Accounting Policies and Accounting Estimates" experts will be reviewed and evaluated.
(12) The accounting policies for inventory and "VI. Notes to
Major Items of the Consolidated Financial Statements" (6)
Inventory.
4. Other InformationThe Company’s management (hereinafter referred to as the Management”) is responsible for the other information. The other
94ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
information comprises all of the information included in the Company’s 2023 Annual Report other than the financial statements and
our auditor’s report thereon.Our 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 the financial statements our responsibility is to read the other information and in doing so consider
whether the other information is materially inconsistent with the financial statements or our knowledge obtained in 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 this other information we are required
to report that fact. We have nothing to report in this regard.
5. Responsibilities of Management and Those Charged with Governance for Financial Statements
The Management is responsible for the preparation of the financial statements that give a fair view in accordance with CAS and for
designing implementing and maintaining such internal control as the management determines is necessary to enable the preparation
of financial statements that are free from material misstatement whether due to fraud or error.In preparing the financial statements the Management is responsible for assessing the Company’s ability to continue as a going
concern disclosing as applicable matters related to going concern and using the going concern basis of accounting unless the
Management either intends to liquidate the Company or to cease operations or have no realistic alternative but to do so.Those charged with governance (hereinafter referred to as the “Governance”) are responsible for overseeing the Company’s financial
reporting process.
6. Auditor’s Responsibilities for 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 auditor’s 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 CAS will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if individually or in the aggregate they could
reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.As part of an audit in accordance with CAS we exercise professional judgment and maintain professional skepticism throughout the
audit. We also:
(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) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances.
(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 management’s use of the going concern basis of accounting and based on the audit
evidence obtained whether a material uncertainty exists related to events or conditions that may cast significant doubt on the
Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists we are required by CAS to draw
users’ attention in our auditor’s report to the related disclosures in the financial statements or. if such disclosures are inadequate to
modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However future
events or conditions may cause the Company to cease to continue as a going concern.
(5) Evaluate the overall presentation structure and content of the financial statements and whether the financial statements represent
the underlying transactions and events in a manner that achieves fair presentation.
95ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the
Company to express an opinion on the financial statements. We are responsible for the direction supervision and performance of the
Company audit. We remain solely responsible for our audit opinion.We communicate with those charged with governance regarding the planned scope and timing of the audit and significant audit
findings including any noteworthy 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 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 consolidated financial statements of the current period and are therefore the key audit matters. We describe these
matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when in extremely rare
circumstances we determine that a matter should not be communicated in our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of such communication.Chinese CPA
Beijing·China (Engagement Partner):
29 March 2024
Chinese CPA:
II Financial Statements
Currency unit for the financial statements and the notes thereto: RMB
1. Consolidated Balance Sheet
Prepared by Shenzhen Properties & Resources Development (Group) Ltd.
31 December 2023
Unit: RMB
Item 31 December 2023 1 January 2023
Current assets:
Monetary assets 2748798476.72 1517528893.83
Settlement reserve
Interbank loans granted
Held-for-trading financial assets
Derivative financial assets
96ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Notes receivable
Accounts receivable 502806453.88 419933915.30
Accounts receivable financing
Prepayments 11983086.35 100341806.56
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract reserve
Other receivables 624394372.82 639903523.33
Including: Interest receivable
Dividends receivable
Financial assets purchased under resale
agreements
Inventories 11098209095.74 10975334223.37
Contract assets 844485.57 1094632.90
Assets held for sale
Current portion of non-current assets
Other current assets 127774825.51 65655266.27
Total current assets 15114810796.59 13719792261.56
Non-current assets:
Loans and advances to customers
Investments in debt obligations
Investments in other debt obligations
Long-term receivables 22651454.07
Long-term equity investments 84057750.55 79781437.31
Investments in other equity
instruments 636926.20 887838.64
Other non-current financial assets
Investment property 386810800.47 405762739.18
Fixed assets 66436408.90 82745172.12
Construction in progress
Productive living assets
Oil and gas assets
Right-of-use assets 23516796.22 70168415.65
Intangible assets 889801.14 1269382.91
Development costs
Goodwill 9446847.38 9446847.38
Long-term prepaid expense 21510397.88 21980602.46
Deferred income tax assets 1276440386.83 1407551347.20
Other non-current assets 3505155.93 2750873.08
Total non-current assets 1873251271.50 2104996110.00
Total assets 16988062068.09 15824788371.56
Current liabilities:
Short-term borrowings 230915000.00
Borrowings from the central bank
Interbank loans obtained
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 662869059.59 608283388.52
Advances from customers 2265223.56 2260847.31
Contract liabilities 820424953.42 920828040.81
Financial assets sold under repurchase
agreements
97ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Customer deposits and interbank
deposits
Payables for acting trading of securities
Payables for underwriting of securities
Employee benefits payable 218786111.78 239126392.02
Taxes payable 4026957347.94 3917278346.81
Other payables 1217303294.25 1515085832.45
Including: Interest payable
Dividends payable 12202676.04 12202676.04
Handling charges and commissions
payable
Reinsurance payables
Liabilities directly associated with
assets held for sale
Current portion of non-current liabilities 3092324853.07 218858766.82
Other current liabilities 68373661.13 83991786.83
Total current liabilities 10340219504.74 7505713401.57
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 1399889274.47 3618782344.00
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 10571092.27 77963283.55
Long-term payables 400105655.56
Long-term employee benefits payable
Provisions 650000.00 766612.52
Deferred income
Deferred income tax liabilities 5862279.70 22979304.10
Other non-current liabilities 127039225.54 128008919.79
Total non-current liabilities 1944117527.54 3848500463.96
Total liabilities 12284337032.28 11354213865.53
Owners’ equity:
Share capital 595979092.00 595979092.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 80488045.38 80488045.38
Less: Treasury stock
Other comprehensive income -3352337.88 -3854377.95
Specific reserve
Surplus reserves 116108727.08 48892576.10
General reserve
Retained earnings 3872586802.17 3692753832.81
Total equity attributable to owners of the
Company as the parent 4661810328.75 4414259168.34
Non-controlling interests 41914707.06 56315337.69
Total owners’ equity 4703725035.81 4470574506.03
Total liabilities and owners’ equity 16988062068.09 15824788371.56
Legal representative: Liu Shengxiang Head of financial affairs: Cai Lili Head of the financial department: Cai Kelin
98ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 31 December 2023 1 January 2023
Current assets:
Monetary assets 1477419010.01 532263736.63
Held-for-trading financial assets
Derivative financial assets
Notes receivable
Accounts receivable 120029158.78 5137042.71
Accounts receivable financing
Prepayments
Other receivables 4489713785.01 5162396869.45
Including: Interest receivable
Dividends receivable 151433108.41
Inventories 50777366.97 793075051.53
Contract assets
Assets held for sale
Current portion of non-current assets
Other current assets 2617751.73 18130015.97
Total current assets 6140557072.50 6511002716.29
Non-current assets:
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 1374549151.65 1447747317.70
Investments in other equity
instruments 867426.20 1118338.64
Other non-current financial assets
Investment property 253100089.70 260599477.89
Fixed assets 22373578.76 31577309.67
Construction in progress
Productive living assets
Oil and gas assets
Right-of-use assets 2700397.70 3238351.85
Intangible assets 3887333.33
Development costs
Goodwill
Long-term prepaid expense 380493.32 860115.06
Deferred income tax assets 1961067.37 153811385.39
Other non-current assets 2853376650.86 2362376650.86
Total non-current assets 4513196188.89 4261328947.06
Total assets 10653753261.39 10772331663.35
Current liabilities:
Short-term borrowings
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 77667521.25 41228778.20
Advances from customers 227.00 952186.65
Contract liabilities 840878470.63
Employee benefits payable 57605546.32 56425731.67
Taxes payable 75570618.96 1783757.84
Other payables 7278131009.11 7258663180.38
Including: Interest payable
Dividends payable 29642.40 29642.40
99ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Liabilities directly associated with
assets held for sale
Current portion of non-current liabilities 63605554.05 190431469.82
Other current liabilities 75679062.35
Total current liabilities 7552580476.69 8466042637.54
Non-current liabilities:
Long-term borrowings 400400000.00 462000000.00
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 1708456.34 1947178.87
Long-term payables 400105655.56
Long-term employee benefits payable
Provisions
Deferred income
Deferred income tax liabilities 675099.43 809587.96
Other non-current liabilities 40000000.00 40000000.00
Total non-current liabilities 842889211.33 504756766.83
Total liabilities 8395469688.02 8970799404.37
Owners’ equity:
Share capital 595979092.00 595979092.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 53876380.11 53876380.11
Less: Treasury stock
Other comprehensive income -3004584.80 -2742841.65
Specific reserve
Surplus reserves 116108727.08 48892576.10
Retained earnings 1495323958.98 1105527052.42
Total owners’ equity 2258283573.37 1801532258.98
Total liabilities and owners’ equity 10653753261.39 10772331663.35
3. Consolidated Income Statement
Unit: RMB
Item 2023 2022
1. Revenue 2965117025.04 3708669046.85
Including: Operating revenue 2965117025.04 3708669046.85
Interest revenue
Insurance premium income
Handling charge and commission income
2. Costs and expenses 2745490676.70 3142047245.48
Including: Cost of sales 2233525382.49 1978777621.22
Interest costs
Handling charge and commission
expense
Surrenders
Net insurance claims paid
Net amount provided as insurance
contract reserve
100ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surcharges 106650246.82 725920657.80
Selling expense 46757158.57 53541997.78
Administrative expense 310578375.15 329991655.74
R&D expense 4133484.37 3244129.11
Finance costs 43846029.30 50571183.83
Including: Interest expense 55930898.29 64941564.63
Interest income 19183529.19 21591864.72
Add: Other income 15432192.52 19484058.67
Return on investment (“-” for loss) 705759652.36 1981330.90
Including: Share of profit or loss of joint
ventures and associates 4339433.24 2040461.81
Income from the derecognition of
financial assets at amortized cost (“-” for
loss)
Exchange gain (“-” for loss)
Net gain on exposure hedges (“-” for
loss)
Gain on changes in fair value (“-”
for loss) 117082.19
Credit impairment loss (“-” for loss) -19844952.87 -17395139.90
Asset impairment loss (“-” for loss) -212173623.03 -528430.23
Asset disposal income (“-” for loss) 833369.19 175810605.44
3. Operating profit (“-” for loss) 709632986.51 746091308.44
Add: Non-operating income 3604677.09 7198004.28
Less: Non-operating expense 6504504.20 2556893.74
4. Profit before tax (“-” for loss) 706733159.40 750732418.98
Less: Income tax expense 257694738.76 221722125.66
5. Net profit (“-” for net loss) 449858861.48 529010293.32
5.1 By operating continuity
5.1.1 Net profit from continuing
operations (“-” for net loss) 449797505.65 529010293.32
5.1.2 Net profit from discontinued
operations (“-” for net loss) 61355.83
5.2 By ownership
5.2.1 Net profit attributable to
shareholders of the Company as the 464014492.11 537291574.13
parent
5.2.1 Net profit attributable to non-
controlling interests -14155630.63 -8281280.81
6. Other comprehensive income net of
tax 502040.07 4320275.71
Attributable to owners of the Company
as the parent 502040.07 4320275.71
6.1 Items that will not be reclassified to
profit or loss -261743.15 -168720.11
6.1.1 Changes caused by remeasurements
on defined benefit schemes
101ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
6.1.2 Other comprehensive income that
will not be reclassified to profit or loss
under the equity method
6.1.3 Changes in the fair value of
investments in other equity instruments -261743.15 -168720.11
6.1.4 Changes in the fair value arising
from changes in own credit risk
6.1.5 Other
6.2 Items that will be reclassified to
profit or loss 763783.22 4488995.82
6.2.1 Other comprehensive income that
will be reclassified to profit or loss under
the equity method
6.2.2 Changes in the fair value of
investments in other debt obligations
6.2.3 Other comprehensive income
arising from the reclassification of
financial assets
6.2.4 Credit impairment allowance for
investments in other debt obligations
6.2.5 Reserve for cash flow hedges
6.2.6 Differences arising from the
translation of foreign currency- 763783.22 4488995.82
denominated financial statements
6.2.7 Other
Attributable to non-controlling interests
7. Total comprehensive income 450360901.55 533330569.03
Attributable to owners of the Company
as the parent 464516532.18 541611849.84
Attributable to non-controlling interests -14155630.63 -8281280.81
8. Earnings per share
8.1 Basic earnings per share 0.7786 0.9015
8.2 Diluted earnings per share 0.7786 0.9015
Where business combinations under common control occurred in the Current Period the net profit achieved by the acquirees
before the combinations was RMB0 with the amount for the same period of last year being RMB0.Legal representative: Liu Shengxiang Head of financial affairs: Cai Lili Head of the financial department: Cai Kelin
4. Income Statement of the Company as the Parent
Unit: RMB
Item 2023 2022
1. Operating revenue 1053809354.95 75486414.74
Less: Cost of sales 790579825.41 44999240.65
Taxes and surcharges 11569489.25 5106898.84
Selling expense 1376939.25 400095.36
Administrative expense 100710539.92 102699790.62
R&D expense
Finance costs 12752211.70 6565334.70
Including: Interest costs 24335591.87 27016860.03
Interest revenue 12114868.86 13235541.77
102ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Add: Other income 252975.99 183849.33
Return on investment (“-” for loss) 761774908.45 313407689.63
Including: Share of profit or loss of joint
ventures and associates 4339433.24 2040461.81
Income from the derecognition of
financial assets at amortized cost (“-” for
loss)
Net gain on exposure hedges (“-”
for loss)
Gain on changes in fair value (“-”
for loss)
Credit impairment loss (“-” for loss) -3568827.56 280304.06
Asset impairment loss (“-” for loss)
Asset disposal income (“-” for loss) 111000.73
2. Operating profit (“-” for loss) 895390407.03 229586897.59
Add: Non-operating income 1910619.60
Less: Non-operating expense 15573.60 23576.47
3. Profit before tax (“-” for loss) 897285453.03 229563321.12
Less: Income tax expense 225123943.28 37070551.98
4. Net profit (“-” for net loss) 672161509.75 192492769.14
4.1 Net profit from continuing
operations (“-” for net loss) 672161509.75 192492769.14
4.2 Net profit from discontinued
operations (“-” for net loss)
5. Other comprehensive income net of
tax -261743.15 -168720.11
5.1 Items that will not be reclassified to
profit or loss -261743.15 -168720.11
5.1.1 Changes caused by remeasurements
on defined benefit schemes
5.1.2 Other comprehensive income that
will not be reclassified to profit or loss
under the equity method
5.1.3 Changes in the fair value of
investments in other equity instruments -261743.15 -168720.11
5.1.4 Changes in the fair value arising
from changes in own credit risk
5.1.5 Other
5.2 Items that will be reclassified to
profit or loss
5.2.1 Other comprehensive income that
will be reclassified to profit or loss under
the equity method
5.2.2 Changes in the fair value of
investments in other debt obligations
5.2.3 Other comprehensive income
arising from the reclassification of
financial assets
5.2.4 Credit impairment allowance for
investments in other debt obligations
5.2.5 Reserve for cash flow hedges
5.2.6 Differences arising from the
translation of foreign currency-
denominated financial statements
5.2.7 Other
6. Total comprehensive income 671899766.60 192324049.03
103ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
5. Consolidated Cash Flow Statement
Unit: RMB
Item 2023 2022
1. Cash flows from operating activities:
Proceeds from sale of commodities and
rendering of services 3136072105.49 3437128020.73
Net increase in customer deposits and
interbank deposits
Net increase in borrowings from the
central bank
Net increase in loans from other
financial institutions
Premiums received on original
insurance contracts
Net proceeds from reinsurance
Net increase in deposits and
investments of policy holders
Interest handling charges and
commissions received
Net increase in interbank loans obtained
Net increase in proceeds from
repurchase transactions
Net proceeds from acting trading of
securities
Tax rebates 17871338.77 10058351.98
Cash generated from other operating
activities 355263031.70 1078867968.60
Subtotal of cash generated from
operating activities 3509206475.96 4526054341.31
Payments for commodities and services 2249429282.59 2510779597.33
Net increase in loans and advances to
customers
Net increase in deposits in the central
bank and in interbank loans granted
Payments for claims on original
insurance contracts
Net increase in interbank loans granted
Interest handling charges and
commissions paid
Policy dividends paid
Cash paid to and for employees 971486269.04 983205651.52
Taxes paid 280607594.18 688906681.47
Cash used in other operating activities 271776314.48 237929307.13
Subtotal of cash used in operating
activities 3773299460.29 4420821237.45
Net cash generated from/used in
operating activities -264092984.33 105233103.86
2. Cash flows from investing activities:
Proceeds from disinvestment 297479.85
Return on investment 63120.00
104ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Net proceeds from the disposal of fixed
assets intangible assets and other long- 92191.39 197192641.96
lived assets
Net proceeds from the disposal of
subsidiaries and other business units 634578885.34
Cash generated from other investing
activities
Subtotal of cash generated from
investing activities 634734196.73 197490121.81
Payments for the acquisition of fixed
assets intangible assets and other long- 7641999.39 17734048.21
lived assets
Payments for investments 0.00 27380294.13
Net increase in pledged loans granted
Net payments for the acquisition of
subsidiaries and other business units 0.00 0.00
Cash used in other investing activities
Subtotal of cash used in investing
activities 7641999.39 45114342.34
Net cash generated from/used in
investing activities 627092197.34 152375779.47
3. Cash flows from financing activities:
Capital contributions received 0.00 17760000.00
Including: Capital contributions by non-
controlling interests to subsidiaries 0.00 17760000.00
Borrowings raised 1084580254.47 285589674.44
Cash generated from other financing
activities 400000000.00 0.00
Subtotal of cash generated from
financing activities 1484580254.47 303349674.44
Repayment of borrowings 194193324.00 63300000.00
Interest and dividends paid 402974331.30 593986146.21
Including: Dividends paid by
subsidiaries to non-controlling interests 245000.00 0.00
Cash used in other financing activities 27083856.33 306511487.27
Subtotal of cash used in financing
activities 624251511.63 963797633.48
Net cash generated from/used in
financing activities 860328742.84 -660447959.04
4. Effect of foreign exchange rates
changes on cash and cash equivalents 117321.79 4790697.94
5. Net increase in cash and cash
equivalents 1223445277.64 -398048377.77
Add: Cash and cash equivalents
beginning of the period 1509693857.48 1907742235.25
6. Cash and cash equivalents end of the
period 2733139135.12 1509693857.48
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item 2023 2022
1. Cash flows from operating activities:
Proceeds from sale of commodities and
rendering of services 91759421.31 421114781.33
Tax rebates
Cash generated from other operating
activities 1234735240.99 1762436455.47
105ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Subtotal of cash generated from
operating activities 1326494662.30 2183551236.80
Payments for commodities and services 54693324.00 97820597.35
Cash paid to and for employees 52203282.11 65677185.99
Taxes paid 52237252.64 34805390.11
Cash used in other operating activities 694228351.07 1082444909.69
Subtotal of cash used in operating
activities 853362209.82 1280748083.14
Net cash generated from/used in
operating activities 473132452.48 902803153.66
2. Cash flows from investing activities:
Proceeds from disinvestment 835000000.00 1841000000.00
Return on investment 151496228.41 473625777.76
Net proceeds from the disposal of fixed
assets intangible assets and other long- 209.00
lived assets
Net proceeds from the disposal of
subsidiaries and other business units
Cash generated from other investing
activities
Subtotal of cash generated from investing
activities 986496228.41 2314625986.76
Payments for the acquisition of fixed
assets intangible assets and other long- 697768.98 1154885.13
lived assets
Payments for investments 491000000.00 3124506071.91
Net payments for the acquisition of
subsidiaries and other business units
Cash used in other investing activities
Subtotal of cash used in investing
activities 491697768.98 3125660957.04
Net cash generated from/used in
investing activities 494798459.43 -811034970.28
3. Cash flows from financing activities:
Capital contributions received
Borrowings raised 125000000.00
Cash generated from other financing
activities 400000000.00
Subtotal of cash generated from
financing activities 400000000.00 125000000.00
Repayment of borrowings 188100000.00 63100000.00
Interest and dividends paid 239765330.40 432215867.55
Cash used in other financing activities 1603790.70
Subtotal of cash used in financing
activities 427865330.40 496919658.25
Net cash generated from/used in
financing activities -27865330.40 -371919658.25
4. Effect of foreign exchange rates
changes on cash and cash equivalents -697037.83 12768.24
5. Net increase in cash and cash
equivalents 939368543.68 -280138706.63
Add: Cash and cash equivalents
beginning of the period 528272695.05 808411401.68
6. Cash and cash equivalents end of the
period 1467641238.73 528272695.05
106ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
7. Consolidated Statements of Changes in Owners’ Equity
2023
Unit: RMB
2023
Equity attributable to owners of the Company as the parent
Other equity Othe Non-
instruments r contr Total
Item Shar Capi Less: com Spec Surp Gene Retai ollin own
e Prefe Perp tal Trea preh ific lus ral ned Othe Subt g ers’
capit rred etual Othe reser sury ensiv reser reser reser earni r otal inter equit
al share bond r ves stock e ve ves ve ngs ests y
s s inco
me
1.
Bala
nce
as at 595 804 - 488 369 441 563 447
the 979 880 385 925 275 425 153 057
end 092. 45.3 437 76.1 383 916 37.6 450
of 00 8 7.95 0 2.81 8.34 9 6.03
the
prior
year
Add:
Adju
stme
nt
for
chan
ge in
acco
untin
g
polic
y
Adju
stme
nt
for
corre
ction
of
previ
ous
error
Othe
r
adjus
tmen
ts
2.
Bala
nce
as at 595 804 - 488 369 441 563 447
the 979 880 385 925 275 425 153 057
begi 092. 45.3 437 76.1 383 916 37.6 450
nnin 00 8 7.95 0 2.81 8.34 9 6.03
g of
the
year
3.502672179247-233
107ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Incre 040. 161 832 551 144 150
ase/ 07 50.9 969. 160. 006 529.decr
ease 8 36 41 30.6 78
in 3
the
period (“-” for
decr
ease)
3.1
Total -
com 464 464 450502 141
preh 014 516 360
ensiv 040. 556492. 532. 901.e 07 30.611 18 55
inco 3
me
3.2
Capi
tal
incre
ased
and
redu
ced
by
own
ers
3.2.1
Ordi
nary
share
s
incre
ased
by
own
ers
3.2.2
Capi
tal
incre
ased
by
hold
ers
of
other
equit
y
instr
ume
nts
3.2.3
Shar
e-
base
d
pay
ment
s
inclu
ded
in
108ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
own
ers’
equit
y
3.2.4
Othe
r
3.3---
Profi 672 -282 215 215
t 161 245
distri 364 148 39350.9 000.butio 603. 452. 452.8 00
n 19 21 21
3.3.1
Appr -
opria 672 672
tion 161
to 16150.9
surpl 50.98
us 8
reser
ves
3.3.2
Appr
opria
tion
to
gene
ral
reser
ve
3.3.3
Appr
opria - - -
tion -215 215 215
to 245
own 148 148 393000.ers 452. 452. 452.00
(or 21 21 21
share
hold
ers)
3.3.4
Othe
r
3.4
Tran
sfers
withi
n
own
ers’
equit
y
3.4.1
Incre
ase
in
capit
al (or
share
109ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
capit
al)
from
capit
al
reser
ves
3.4.2
Incre
ase
in
capit
al (or
share
capit
al)
from
surpl
us
reser
ves
3.4.3
Loss
offse
t by
surpl
us
reser
ves
3.4.4
Chan
ges
in
defin
ed
bene
fit
sche
mes
trans
ferre
d to
retai
ned
earni
ngs
3.4.5
Othe
r
com
preh
ensiv
e
inco
me
trans
ferre
d to
retai
ned
earni
ngs
110ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
3.4.6
Othe
r
3.5
Spec
ific
reser
ve
3.5.1
Incre
ase
in
the
perio
d
3.5.2
Used
in
the
perio
d
---
3.6
Othe 181 181 181
r 691 691 691
9.569.569.56
4.
Bala
nce
as at 595 804 - 116 387 466 419 470
the 979 880 335 108 258 181 147 372
end 092. 45.3 233 727. 680 032 07.0 503
of 00 8 7.88 08 2.17 8.75 6 5.81
the
perio
d
2022
Unit: RMB
2022
Equity attributable to owners of the Company as the parent
Other equity Othe Non-
instruments r contr Total
Item Shar Capi Less: com Spec Surp Gene Retai ollin own
e Prefe Perp tal Trea preh ific lus ral ned Othe Subt g ers’
capit rred etual Othe reser sury ensiv reser reser reser earni r otal inter equit
al share bond r ves stock e ve ves ve ngs ests y
s s inco
me
1.
Bala
nce
as at 595 804 - 296 378 448 449 453
the 979 880 817 375 818 611 796 109
end 092. 45.3 465 48.4 075 079 74.1 046
of 00 8 3.66 7 8.20 0.39 9 4.58
the
prior
year
Add: 207 207 170 209
Adju 575
stme 099 674 05.3 3750.71
nt 4.22 4.93 1 0.24
111ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
for
chan
ge in
acco
untin
g
polic
y
Adju
stme
nt
for
corre
ction
of
previ
ous
error
Othe 738 179 121 103 105183
r 543 373 495 941 781
adjus 99303.6 91.7 72.0 267. 206.tmen 9.002 1 3 36 36
ts
2.
Bala
nce
as at 595 154 - 475 380 459 468 463
the 979 342 817 806 240 212 366 896
begi 092. 349. 465 90.8 132 880 18.5 542
nnin 00 00 3.66 9 4.45 2.68 0 1.18
g of
the
year
3.
Incre
ase/
decr - - - -
ease 738 432 131 109 177 947 168
in
the 543 027 188 647 869 871 390
perio 03.6 5.71 5.21 491. 634. 9.19 915.d (“- 2 64 34 15” for
decr
ease)
3.1
Total
com 537 541 - 533432
preh 291 611 828 330
ensiv 027 574. 849. 128 569.e 5.71 13 84 0.81 03
inco
me
3.2
Capi
tal
incre - - - - -177
ased 738 179 222 314 296
and 600543 373 424 215 455
redu 00.003.6 91.7 006. 701. 701.ced 02 1 29 62 62
by
own
ers
112ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
3.2.1
Ordi
nary
share 177 177
s 600 600
incre 00.0 00.0
ased 0 0
by
own
ers
3.2.2
Capi
tal
incre
ased
by
hold
ers
of
other
equit
y
instr
ume
nts
3.2.3
Shar
e-
base
d
pay
ment
s
inclu
ded
in
own
ers’
equit
y
-----
3.2.4738179222314314
Othe 543 373 424 215 215
r 03.6 91.7 006. 701. 701.
21296262
3.3---
Profi 192 424 405 405
t 490
distri 514 265 26557.3
butio 839. 782. 782.4
n 90 56 56
3.3.1
Appr -
opria 192 192
tion 490
to 49057.3
surpl 57.34
us 4
reser
ves
3.3.2
Appr
opria
tion
113ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
to
gene
ral
reser
ve
3.3.3
Appr
opria - - -
tion 405 405 405
to
own 265 265 265
ers 782. 782. 782.(or 56 56 56
share
hold
ers)
3.3.4
Othe
r
3.4
Tran
sfers
withi
n
own
ers’
equit
y
3.4.1
Incre
ase
in
capit
al (or
share
capit
al)
from
capit
al
reser
ves
3.4.2
Incre
ase
in
capit
al (or
share
capit
al)
from
surpl
us
reser
ves
3.4.3
Loss
offse
t by
surpl
114ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
us
reser
ves
3.4.4
Chan
ges
in
defin
ed
bene
fit
sche
mes
trans
ferre
d to
retai
ned
earni
ngs
3.4.5
Othe
r
com
preh
ensiv
e
inco
me
trans
ferre
d to
retai
ned
earni
ngs
3.4.6
Othe
r
3.5
Spec
ific
reser
ve
3.5.1
Incre
ase
in
the
perio
d
3.5.2
Used
in
the
perio
d
3.6
Othe
r
4.595804-488369441563447
115ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Bala 979 880 385 925 275 425 153 057
nce 092. 45.3 437 76.1 383 916 37.6 450
as at
the 00 8 7.95 0 2.81 8.34 9 6.03
end
of
the
perio
d
8. Statements of Changes in Owners’ Equity of the Company as the Parent
2023
Unit: RMB
2023
Other equity instruments Other
Item Share Capital
Less: compr Surplu Retain Total
Preferr Perpet reserve Treasu ehensi
Specifi
c s ed ownerscapital ed ual Other s ry ve reserve reserve earnin
Other ’
shares bonds stock incom s gs equity
e
1.
Balanc
e as at 59597 53876 - 48892 1105 1801
the end 9092. 380.1 2742 576.1 52705 53225
of the 00 1 841.65 0 2.42 8.98
prior
year
Add:
Adjust
ment
for
change
in
accoun
ting
policy
Adjust
ment
for
correct
ion of
previo
us
error
Other
adjust
ments
2.
Balanc
e as at 59597 53876 - 48892 1105 1801
the
beginn 9092. 380.1 2742 576.1 52705 53225
ing of 00 1 841.65 0 2.42 8.98
the
year
3.
Increas - 67216 38979 45675
e/
decrea 26174 150.9 6906. 1314.se in 3.15 8 56 39
the
116ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
period
(“-”
for
decrea
se)
3.1
Total
compr - 67216 67189
ehensi 26174 1509. 9766.ve 3.15 75 60
incom
e
3.2
Capital
increas
ed and
reduce
d by
owners
3.2.1
Ordina
ry
shares
increas
ed by
owners
3.2.2
Capital
increas
ed by
holder
s of
other
equity
instru
ments
3.2.3
Share-
based
payme
nts
includ
ed in
owners
’
equity
3.2.4
Other
3.3--67216
Profit 28236 21514
distrib 150.9 4603. 8452.ution 8 19 21
3.3.1
Appro -67216
priatio 67216
n to 150.9 150.9
surplus 8 8
reserve
s
3.3.2--
Appro 21514 21514
priatio 8452. 8452.n to 21 21
owners
117ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
(or
shareh
olders)
3.3.3
Other
3.4
Transf
ers
within
owners
’
equity
3.4.1
Increas
e in
capital
(or
share
capital
) from
capital
reserve
s
3.4.2
Increas
e in
capital
(or
share
capital
) from
surplus
reserve
s
3.4.3
Loss
offset
by
surplus
reserve
s
3.4.4
Chang
es in
define
d
benefit
schem
es
transfe
rred to
retaine
d
earnin
gs
3.4.5
Other
compr
ehensi
ve
118ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
incom
e
transfe
rred to
retaine
d
earnin
gs
3.4.6
Other
3.5
Specifi
c
reserve
3.5.1
Increas
e in
the
period
3.5.2
Used
in the
period
3.6
Other
4.
Balanc 59597 53876 - 11610 1495 2258
e as at
the end 9092. 380.1 3004 8727. 32395 28357
of the 00 1 584.80 08 8.98 3.37
period
2022
Unit: RMB
2022
Other equity instruments Other
Item Share Capital
Less: compr Specifi Surplu Retain Total
Preferr Perpet Treasu ehensi s ed owners
capital reserveed ual Other s ry ve
c reserve earnin Other ’
shares bonds stock incom
reserve s gs equity
e
1.
Balanc
e as at 59597 53876 - 29637 1337 2014
the end 9092. 380.1 2574 548.4 49758 41648
of the 00 1 121.54 7 6.41 5.45
prior
year
Add:
Adjust
ment
for
change 5750. 51756 57507
in 71 .35 .06
accoun
ting
policy
Adjust
ment
for
correct
119ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
ion of
previo
us
error
Other
adjust
ments
2.
Balanc
e as at 59597 53876 - 29643 1337 2014
the
beginn 9092. 380.1 2574 299.1 54934 47399
ing of 00 1 121.54 8 2.76 2.51
the
year
3.
Increas
e/
decrea - -
se in - 19249
the 23202 2129416872 276.9
period 2290. 1733.0.11 2
(“-”3453
for
decrea
se)
3.1
Total
compr - 19249 19232
ehensi 16872 2769. 4049.ve 0.11 14 03
incom
e
3.2
Capital
increas
ed and
reduce
d by
owners
3.2.1
Ordina
ry
shares
increas
ed by
owners
3.2.2
Capital
increas
ed by
holder
s of
other
equity
instru
ments
3.2.3
Share-
based
payme
nts
includ
ed in
owners
’
120ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
equity
3.2.4
Other
3.3--19249
Profit 42451 40526
distrib 276.9 5059. 5782.ution 2 48 56
3.3.1
Appro -19249
priatio 19249
n to 276.9 276.9
surplus 2 2
reserve
s
3.3.2
Appro - -
priatio
n to 40526 40526
owners 5782. 5782.(or 56 56
shareh
olders)
3.3.3
Other
3.4
Transf
ers
within
owners
’
equity
3.4.1
Increas
e in
capital
(or
share
capital
) from
capital
reserve
s
3.4.2
Increas
e in
capital
(or
share
capital
) from
surplus
reserve
s
3.4.3
Loss
offset
by
surplus
reserve
s
121ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
3.4.4
Chang
es in
define
d
benefit
schem
es
transfe
rred to
retaine
d
earnin
gs
3.4.5
Other
compr
ehensi
ve
incom
e
transfe
rred to
retaine
d
earnin
gs
3.4.6
Other
3.5
Specifi
c
reserve
3.5.1
Increas
e in
the
period
3.5.2
Used
in the
period
3.6
Other
4.
Balanc 59597 53876 - 48892 1105 1801
e as at
the end 9092. 380.1 2742 576.1 52705 53225
of the 00 1 841.65 0 2.42 8.98
period
III Company Profile
Shenzhen Properties & Resources Development (Group) Ltd. (hereinafter referred to as “the Company” or “Company”) was
incorporated based on the reconstruction of Shenzhen Properties & Resources Development Co. Ltd. after obtaining approval of
ZFBF [1991] No. 831 from People’s Government of Shenzhen Municipality. It was registered with Shenzhen Industrial and
Commercial Administration Bureau on 17 January 1983 with Shenzhen as its headquarters. Now the Company holds the business
license for legal person with the registration number/unified social credit code of 91440300192174135N. The registered capital was
122ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
RMB595979092 with the total shares of 595979092 (RMB1 face value per share) among which restricted public shares:
1898306 A shares and 0 B shares; unrestricted public shares: 526475543 A shares and 67605243 B shares. The stock of the
Company has been listed on the Shenzhen Stock Exchange on 30 March 1992.The Company is in the real estate sector. Its main business includes development of real estate and sale of commercial housing
construction and management of buildings house rent supervision of construction domestic trading and materials supply and
marketing (excluding exclusive dealing and monopoly sold products and commodities under special control to purchase). Main
products or services rendered mainly include the development and sales of commercial residential housing; property management;
buildings and the building devices maintenance garden afforest and cleaning service; property leasing; supervise and management of
the engineering; retails of the Chinese food Western-style food and wines and etc.The financial statements were approved and authorized for issue by the 25th Meeting of the 10th Board of Directors of the Company
on 29 March 2024.The consolidation scope of the Company’s consolidated financial statements was determined based on the control which included the
financial statements of the Company and all its subsidiaries. A subsidiary refers to an enterprise or entity controlled by the Company.There were 60 subsidiaries included in the consolidation financial statements in this report. Please refer to the Note IX and Note X of
the financial report for details.IV Basis for Preparation of Financial Statements
1. Preparation Basis
Based on the continuing operation the financial statements of the Company are prepared in accordance with the actual
transactions governing provisions of the Accounting Standards for Business Enterprises and the following major accounting
policies and estimates.
2. Continuation
There was no such case where the sustainable operation ability within 12 months since the end of the Reporting Period was highly
doubted.V. Important Accounting Policies and Estimations
Indication of specific accounting policies and estimations:
The Company has formulated specific accounting policies and accounting estimates for transactions and events such as the
recognition of incomes based on the actual production and operation characteristics and in accordance with the provisions of the
relevant accounting standards for business enterprises. Please refer to "Financial Instruments" "Inventory" and "Revenue" in this
section for details.
1. Statement for Complying with the Accounting Standard for Business Enterprise
The financial statement prepared by the Company complies with the requirements of the latest accounting standards for business
enterprises as well as the application guidelines interpretations and other relevant regulations (hereinafter referred to as the
“accounting standards for business enterprises”) issued by the Ministry of Finance. It reflects the Company’s financial conditions
operating results cash flow and other related information in a truthful and complete manner.In addition in the preparation of the financial report reference was made to the presentation and disclosure requirements of the Rule
for Information Disclosure by Companies Offering Securities to the Public No. 15 - General Provisions on Financial Reports (2014
123ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Revision) and the Notice on Related Matters of the Implementation of New Accounting Standards for Business Enterprises by Listed
Companies (KJBH [2018] No. 453).
2. Fiscal Period
The fiscal year of the Company is a solar calendar year which is from 1 January to 31 December.
3. Operating Cycle
Except for the real estate industry other businesses run by the Company have relatively short operating cycles according to the
classification standard of 12-month’s liquidity of assets and liabilities. The operating cycle of the real estate industry shall be
generally more than 12 months from real estate development to cash the sales. The specific cycle shall be determined by the
development project and classified by the assets and liabilities liquidity.
4. Standard Currency of Accounts
The Company adopts Renminbi as a standard currency of accounts.
5. Methods for Determining materiality standards and selection criteria
□Applicable □ Not applicable
Item Materiality criteria
Account receivable with bad debt provision by major single
Accounts receivable amounting to RMB5 million or more
item
Non-wholly-owned subsidiaries with revenue exceeding 10%
Significant non-wholly-owned subsidiaries of the consolidated operating revenue or total assets exceeding
5% of the consolidated total assets.
6. Accounting Process of Business Combinations under the Same Control and not under the Same Control
1. Accounting Process of Business Combinations under the Same Control
For business combination under the same control achieved through one transaction or step by step through multiple transactions by
the Company the assets and liabilities acquired in a business combination are measured at the carrying value of the acquiree in the
consolidated financial statements of the ultimate controlling party at the date of combination. The difference between the carrying
value of net assets acquired by the Company and the carrying value of the combination consideration paid (or the total nominal value
of shares issued) is referred to for adjusting capital reserve; if capital reserve is not sufficient to offset the difference then retained
earnings are adjusted.
2. Accounting Process of Business Combinations not under the Same Control
The Group shall recognize the positive balance between the combination costs and the fair value of the identifiable net assets
obtained from the acquiree on purchase date as goodwill. If the combination costs are less than the fair value of the identifiable net
assets obtained from the acquire the Company shall recheck the various identifiable assets and liabilities obtained from the acquire
fair value with liabilities and measurement of combination costs. If the combination costs are less than the fair value of the
identifiable net assets obtained from the acquire after recheck the Company shall the record the balance into the profit and loss of the
current period.Business combinations not under the same control achieved step by step through multiple transactions should be treated in the
following order:
(1) Adjusting the initial investment cost of long-term equity investment If the equity held prior to the date of purchase is accounted
124ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
under the equity method the equity is remeasured at the fair value on the purchase date and the difference between the fair value and
its carrying value is included in the investment income of the current period; if the equity in the acquiree held prior to the purchase
date involves other comprehensive income or changes in other owners' equity under the equity method of accounting it is converted
into income for the current period on the purchase date except for other comprehensive income arising from the re-measurement of
the investee's net liabilities of the defined benefit pension plan or changes in net assets of the defined benefit plan and changes in the
fair value of investments in other equity instruments held.
(2) Determining the goodwill (or the amount included in the profit or loss for the current period) When comparing the initial
investment cost of long-term equity investments adjusted in the first step with the share of the fair value of the identifiable net assets
of the subsidiary on the purchase date if the former is more than the latter the difference between the former and the latter is
recognized as goodwill; if the former is less than the latter the difference is included in profit or loss for the current period.Step-by-step disposal of equity through multiple transactions that results in loss of control over the subsidiary
(1) Principles for determining whether transactions in the process of step-by-step disposal of equity that results in the loss of control
over a subsidiary constitute a "package deal"
The multiple transactions are generally regarded as a "package deal" in accounting treatment if the clauses conditions and economic
impacts of various transactions fall under one or more of the following circumstances:
1) These transactions are reached concurrently or after the impact thereof on each other is taken into consideration.
2) These transactions may achieve a complete business result only as a whole.
3) The occurrence of a transaction depends on the occurrence of at a minimum one another transaction.
4) A transaction is considered uneconomical separately but is considered economical when other transactions are also taken into
consideration.
(2) Accounting treatment when transactions in the process of step-by-step disposal of equity that results in the loss of control over a
subsidiary constitute a "package deal"
If the transactions in the disposal of equity of a subsidiary that results in the loss of control constitute a package deal each transaction
should be accounted for as a transaction that disposes of and loses control over a subsidiary; however the difference between the
disposal price and the share of the net assets of the subsidiary corresponding to the disposal of the investment for each disposal prior
to the loss of control should be recognized as other comprehensive earnings in the consolidated financial statements and transferred
to profit or loss for the current period when the Company lost the control.In the consolidated financial statements the remaining equity should be remeasured at fair value on the date of loss of control. The
sum of the consideration obtained from the disposition of equity and the fair value of the residual equity minus the Company's
portion of net assets in the former subsidiary calculated from the date of combination on an ongoing basis at the original shareholding
ratio is included in the return on investment for the current period when the Company lost the control. Other comprehensive income
related to the equity investments in the former subsidiary should be included in the return on investment or retained earnings for the
current period when the Company lost the control.
(3) Accounting treatment when transactions in the process of step-by-step disposal of equity that results in the loss of control over a
subsidiary do not constitute a "package deal"
If the Company disposes of investments made in its subsidiary without losing control over the subsidiary in the consolidated
financial statements the difference between the payment for equity disposed of and the Company's corresponding portion of net
assets in the subsidiary is included in the capital reserve. If the capital reserve is insufficient for offset the retained earnings should
be adjusted.
125ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
If the disposal of investments made in its subsidiary results in a loss of control over the subsidiary in the consolidated financial
statements the remaining equity should be remeasured at the fair value on the date of loss of control. The sum of the consideration
obtained from the disposition of equity and the fair value of the residual equity minus the Company's portion of net assets in the
former subsidiary calculated from the date of combination on an ongoing basis at the original shareholding ratio is included in the
return on investment for the current period when the Company lost the control. Other comprehensive income related to the equity
investments in the former subsidiary should be included in the return on investment or retained earnings for the current period when
the Company lost the control.
7. Criteria for Judging Control and Methods for Preparing Consolidated Financial Statements
The scope of the Company's consolidated financial statements is determined based on control.Control means that the Company has power over the investee enjoys variable returns through its involvement in the investee's
related activities and has the ability to use the power to influence the amount of returns. Relevant activities refer to activities which
have significant impact on the returns of the investee. The activities of the investee shall be assessed based on specific circumstances
typically including sales and purchases of goods or services management of financial assets acquisition and disposal of assets
research and development activities and financing activities.The Company will judge whether these entities have been controlled by the investee based on its comprehensive consideration of
relevant facts and circumstances. Where changes in relevant facts and circumstances result in changes of relevant elements involved
in the above definition of control the Company shall conduct reassessment.Based on the financial statements of the Company as the parent and its subsidiaries and other related materials the consolidated
financial statements were prepared by the Group as the parent according to Accounting Standards for Enterprises No. 33 –
Consolidated Financial Statements.
8. Classification of Joint arrangements and Accounting Treatment of Joint Operations
1. Identification and classification of joint arrangements
A joint arrangement is an arrangement over which two or more parties have joint control. A joint arrangement has the following
characteristics: (1) Each participant is bound by the arrangement; (2) two or more parties of the joint arrangement exercise joint
control over the arrangement. No one party can control the arrangement alone and any party with joint control over the arrangement
can prevent the other party or combination of parties from controlling the arrangement alone.Joint control refers to the common control over a particular arrangement according to relevant agreement and that the decisions on
relevant activities under such arrangement are subject to unanimous consent from the parties sharing the joint control.Joint arrangements are divided into joint operations and joint ventures. A joint operation is a joint arrangement whereby the party to
joint arrangement has rights to the assets and obligations for the liabilities related to the arrangement. A joint venture is a joint
arrangement whereby the party to joint arrangement has rights to the net assets of the arrangement.
2. Accounting treatment of joint arrangements
A party to a joint operation shall recognize the following items related to its share of interest in the joint operation and conduct
accounting treatment for them in accordance with the relevant provisions of the Accounting Standard for Business Enterprises: (1)
Recognition of assets held separately and of assets held jointly in proportion to its share; (2) recognition of liabilities incurred
separately and of liabilities incurred jointly in proportion to its share; (3) recognition of revenue from the sale of its share of the
output of the joint operation; (4) recognition of revenue from the sale of output of the joint operation in proportion to its share; (5)
126ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
recognition of expenses incurred separately and of expenses incurred in the joint operation in proportion to its share.The party to a joint venture should conduct accounting treatment in accordance with relevant provisions of the Accounting Standards
for Business Enterprises No. 2 - Long-term Equity Investment.
9. Recognition Standard for Cash and Cash Equivalents
In the Company’s understanding cash and cash equivalents include cash on hand any deposit that can be used for cover and short-
term (usually due within 3 months since the day of purchase) and high circulating investments which are easily convertible into
known amount of cash and whose risks in change of value are minimal.
10. Foreign Currency Businesses and Translation of Foreign Currency Financial Statements
(1) Accounting treatments for translation of foreign currency business
As for a foreign currency transaction in its initial recognition the amount in the foreign currency shall be translated into the amount
in the Renminbi at the spot exchange rate of the transaction date. On balance sheet date the foreign currency monetary items shall be
translated as the spot exchange rate on the balance sheet date the balance occurred thereof shall be recorded into the profits and
losses at the current period except that the balance of exchange arising from the principal and interests of foreign currency
borrowings for the purchase and construction or production of assets eligible for capitalization. The foreign currency non-monetary
items measured at the historical cost shall still be translated at the spot exchange rate on the transaction date of which the amount of
functional currency shall not be changed. The foreign currency non-monetary items measured at the fair value shall be translated at
the spot exchange rate on the confirming date of fair value of which the balance of exchange shall be included into the profit and
loss of the current period or other comprehensive income.
(2) Translation of foreign currency financial statements
The asset and liability items in the balance sheets shall be translated at a spot exchange rate on the balance sheet date. Among the
owner’s equity items except for the items as “retained earnings” other items shall be translated at the spot exchange rate at the time
when they are incurred. The income and expense items in the income statements shall be translated at the spot exchange rate at the
time when they are incurred. The difference from translation of foreign currency financial statements thereof shall be recognized as
comprehensive income.
11. Financial Instruments
1. Recognition and derecognition of financial instruments
When the Group becomes a party to a financial instrument contract it recognizes relevant financial assets or financial liabilities.All regular acquisition or sales of financial assets are recognized and derecognized on a trading day basis. Regular acquisition or
sales of financial assets means delivering financial assets within the time limit of laws regulations and usual market practices and in
line with contract terms. The trading day refers to the date when the Group promises to acquire or sell financial assets.Financial assets (or part of financial assets or part of a set of similar financial assets) are derecognized i.e. written off from its
account and balance sheet if the following conditions are met:
(1) The right to receive cash flows from financial assets has expired;
(2) The right to receive cash flows from the financial assets is transferred or the obligation to pay the full amount of cash flows
received to a third party in a timely manner is assumed under a "pass-through agreement"; and (a) substantially almost all the risks
and rewards of its ownership of the financial assets are transferred or (b) control over the financial asset is relinquished although
127ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
substantially all the risks and rewards of its ownership of the financial assets are neither transferred nor retained.
2. Classification and measurement of financial assets
At initial recognition according to the business model of managing financial assets and the contractual cash flow characteristics of
financial assets financial assets of the Group are classified into the following categories: Financial assets measured at the amortized
cost financial assets measured at fair value through other comprehensive income of the current period and financial assets measured
at fair value through profit and loss for the current period. The subsequent measurement of financial assets depended on their
categories.The Group's classification of financial assets is based on the Group's business model for managing financial assets and the cash flow
characteristics of the financial assets.
(1) Financial assets measured at amortized cost
Financial assets that meet both of the following conditions shall be classified as financial assets measured at amortized cost: The
Group's business model of managing the financial assets aims at obtaining contractual cash flows; and as stipulated by contract
clauses of the financial assets the cash flows generated on a specific date are merely for the payment of principal or interest from the
unpaid principal. Such financial assets are subsequently measured at amortized cost using the effective interest method. Gain or loss
arising from derecognition or amortization using the effective interest method is included in profit and loss for the current period.
(2) Debt instrument investment measured at fair value through other comprehensive income
Financial assets that meet all the following conditions shall be classified as financial assets measured at fair value through other
comprehensive income: The Group's business model of managing the financial assets aims at obtaining contractual cash flows as well
as selling financial assets; and as stipulated by contract clauses of the financial assets the cash flows generated on a specific date are
merely for the payment of principal or interest from the unpaid principal. Such financial assets shall be subsequently measured at fair
value. The discount or premium is amortized using the effective interest method and recognized as interest income or expense.Except for impairment losses or gains and exchange differences that are recognized as profit and loss for the current period changes
in the fair value of such financial assets shall be recognized as other comprehensive income until the financial assets are
derecognized when accumulative gains or losses shall be transferred to profit and loss for the current period. Interest income related
to such financial assets is included in profit or loss for the current period.
(3) Equity instrument investment measured at fair value through other comprehensive income
For financial assets measured at fair value through other comprehensive income that are irrevocably chosen and designated by the
Group from some non-trading equity instruments the relevant dividend income shall be included in profit and loss for the current
period and changes in the fair value shall be recognized as other comprehensive income until the financial assets are derecognized
when accumulative gains or losses shall be transferred to retained earnings.
(4) Financial assets measured at fair value through profit and loss for the current period
The aforementioned financial assets measured at amortized cost and financial assets other than those measured at fair value through
other comprehensive income are classified as financial assets measured at fair value through profit and loss for the current period. At
initial recognition in order to eliminate or significantly reduce accounting mismatch financial assets can be designated as financial
assets measured at fair value through profit or loss for the current period. Such financial assets shall be measured at fair value and all
changes in fair value are included in the profit and loss for the current period.When and only when the Group changes its business model of managing financial assets all relevant financial assets affected will be
re-classified.For financial assets measured at fair value through profit and loss for the current period transaction costs are directly included in
128ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
profit and loss for the current period. For other types of financial assets related transaction costs are included in their initial
recognized amounts.
3. Classification and measurement of financial liabilities
At initial recognition the financial liabilities of the Group are classified into the following categories: Financial liabilities measured
at the amortized cost and financial liabilities measured at fair value through profit and loss for the current period.Financial liabilities can be designated as financial liabilities measured at fair value through profit or loss for the current period at
initial measurement if one of the following conditions is met: (1) The designation can eliminate or significantly reduce accounting
mismatch; (2) the management and performance evaluation of a portfolio of financial liabilities or a portfolio of financial assets and
financial liabilities are based on fair value in accordance with the Group's risk management or investment strategy as set out in a
formal written document and are reported to key management personnel on this basis within the Group; (3) The financial liabilities
contain embedded derivatives require splitting.The Group determines the classification of financial liabilities at initial recognition. For financial liabilities measured at fair value
through profit and loss for the current period transaction costs are directly included in profit and loss for the current period. For other
types of financial liabilities related transaction costs are included in their initial recognized amounts.The subsequent measurement of financial liabilities depended on their categories:
(1) Financial liabilities measured at amortized cost
Such financial liabilities shall be subsequently measured at amortized cost using the effective interest method.
(2) Financial liabilities measured at fair value through profit and loss for the current period
Financial liabilities measured at fair value through profit or loss for the current period include trading financial liabilities (including
derivatives that are financial liabilities) and financial liabilities designated as at fair value through profit or loss at initial recognition.
4. Financial instrument offset
The net amount after financial assets and financial liabilities offset each other is reported in the balance sheet if both of the following
conditions are met: The Group had a currently enforceable legal right to offset the recognized amounts; the Group planned to settle
them on a net basis or to realize the financial assets and pay off the financial liabilities simultaneously.
5. Impairment of financial instrument
(1) Impairment measurement and accounting handling of financial instrument
Based on expected credit loss the Company conducts impairment handling and confirms loss reserve for financial assets which is
measured by amortized cost debt instrument investment which is measured by fair value and whose change is calculated into other
comprehensive profits accounts receivable of rental loan commitment which is beyond financial debt classified as the one which is
measured by fair value and whose change is calculated into current profits and losses financial debt which does not belong to the one
which is measured by fair value and whose change is calculated into current profits or losses or financial guarantee contract of
financial debt which is formed when it does not belong to financial asset transfer and doesn’t conform to confirmation condition of
termination or keeps on being involved in transferred financial asset.Expected credit loss refers to weighted average of credit loss of financial instrument which takes the risk of contract breach
occurrence as the weight. Credit loss refers to the difference between all contract cash flow which is converted into cash according to
actual interest rate and receivable according to contract and all cash flow which to be charged as expected i.e. current value of all
cash shortage. Among it as for financial asset purchased or original which has had credit impairment it should be converted into
cash according actual interest rate of this financial asset after credit adjustment.As for financial asset purchased or original which has had credit impairment the Company only confirms cumulative change of
expected credit loss within the whole duration after initial confirmation on the balance sheet date as loss reserve.
129ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
As for accounts receivable which don’t include major financing contents or the Company does not consider financing contents in
contract which is less than one year the Company applies simplified measurement method and measures loss reserve according to
amount of expected credit loss within the whole duration.As for account receivable of rental and accounts receivable including major financing contents the Company applies simplified
measurement method and measure loss reserve according to amount of expected credit loss within the whole duration.As for financial asset beyond above mentioned measurement methods the Company evaluates whether its credit risk has increased
obviously since the initial confirmation on each balance sheet date. In case credit risk has increased obviously the Company
measures the loss reserve according to amount of expected credit loss within the whole duration; in case the credit risk does not
increase obviously the Company measures loss reserve according to the amount of expected credit loss in next 12 months.By utilizing obtainable rational and well grounded information including forward-looking information comparing the risk of
contract breach on balance sheet date and risk of contract breach on initial confirmation date the Company confirms whether the
credit risk of financial instrument has increased obviously from initial confirmation.On balance sheet date in case the Company judges that the financial instrument just has relatively low credit risk then it will be
assumed that credit risk of the financial instrument has not increased obviously.Based on single financial instrument or financial portfolio the Company evaluates expected credit risk and measures expected credit
loss. When based on financial instrument portfolio the Company takes common risk characteristics as the basis and divides financial
instruments into different portfolios.The Company measures expected credit loss again on each balance sheet date the increase of loss reserve or amount which is
transfer back generated by it is calculated into current profits and losses as impairment profits or losses. As for financial asset which
is measured by amortized cost loss reserve offsets the carrying value of the financial asset listed in the balance sheet; as for debt
investment which is measured by fair value and whose change is calculated into other comprehensive profits the Company confirms
its loss reserve in other comprehensive profits and does not offset the carrying value of the financial asset.
(2) Financial instruments assessing expected credit risk by groups and measuring expected credit losses
Item Recognition basis Method of measuring expected credit losses
Other receivables-intercourse funds among Accounts nature Consulting historical experience in credit losses
related party group within the consolidation combining actual situation and prediction for future
scope economic situation the group’s expected credit loss
Other receivables-interest receivable group rate shall be accounted through exposure at default
and the expected credit loss rate within the next 12
Other receivables-other intercourse funds months or the entire life
among other related party group
Other receivables-credit risk characteristics Aging group Consulting historical experience in credit losses
group combining actual situation and prediction for future
economic situation the group’s expected credit loss
rate shall be accounted through exposure at default
and the expected credit loss rate within the next 12
months or the entire life
(3) Accounts receivable with expected credit losses measured by groups
* Specific groups and method of measuring expected credit loss
Item Recognition basis Method of measuring expected credit losses
Bank’s acceptance bills receivable Bill type Consulting historical experience in credit losses
combining actual situation and prediction for future
Trade acceptance bills receivable economic situation the group’s expected credit loss
rate shall be accounted through exposure at default
and the expected credit loss rate within the entire life
Accounts receivable-Government portfolios Account nature No provision for bad debts is made during the credit
period unless there is conclusive evidence of
impairment and the risk of default is low.Accounts receivable-other intercourse funds Account nature Consulting historical experience in credit losses
among other related party group combining actual situation and prediction for future
economic situation the group’s expected credit loss
130ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
rate shall be accounted through exposure at default
and the expected credit loss rate within the entire life
Accounts receivable-credit risk characteristics Aging group Prepare the comparative list between aging of
group accounts receivable and expected credit loss rate
over the entire life by consulting historical
experience in credit losses combining actual
situation and prediction for future economic
situation
* Accounts receivable-the comparative list between aging of common customer group and expected credit loss rate over the entire
life
Aging Expected credit loss rate of accounts receivable (%)
Within 1 year (inclusive the same below) 3.00
1 to 2 years 10.00
2 to 3 years 30.00
3 to 4 years 50.00
4 to 5 years 80.00
Over 5 years 100.00
6. Financial asset transfer
Financial assets are derecognized if the Group has transferred almost all the risks and rewards of its ownership transferred to the
transferor; financial assets are not derecognized if the Group has retained almost all the risks and rewards of its ownership.If the Group has neither transferred nor retained almost all the risks and rewards of its ownership of the transferred financial assets it
will be treated respectively according to the following circumstances: If the control over the financial assets is waived relevant
financial assets shall be derecognized and the assets and liabilities arising from them shall be recognized; if the control over the
financial assets is not waived relevant financial assets shall be recognized based on the extent of continuing involvement with
transferred financial assets and related liabilities shall be recognized accordingly.If continuing involvement is provided by way of financial guarantee for the transferred financial assets the assets resulting from the
continuing involvement are recognized at the lower of the carrying value of the financial assets and the financial guarantee amount.The financial guarantee amount refers to the maximum amount of the consideration received that will be required to be repaid.
12. Notes Receivable
Refer to Note V 11 Financial Instruments of the financial statements for details.
13. Accounts Receivable
Refer to Note V 11 Financial Instruments of the financial statements for details.
14. Accounts Receivable Financing
Not applicable.
15. Other Receivables
Refer to Note V 11 Financial Instruments of the financial statements for details.
16. Contract Assets
1. Methods and criteria for recognizing contract assets
The Company presents contract assets or contract liabilities on the balance sheet according to the relationship between the fulfillment
of its contract performance obligations and its customers’ payment. Considerations that the Company has the right to collect for
commodities transferred or services provided to customers (except for accounts receivable) are presented as contract assets.
2. Method of determining and accounting for expected credit losses on contract assets
131ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
The Company applies a simplified model for expected credit losses to contract assets as prescribed by Accounting Standard for
Business Enterprises No. 14 – Revenues excluding significant financing components (including cases where financing components
within contracts not exceeding one year are disregarded under the standard) measuring the loss provision according to the amount of
expected credit loss of the entire duration. The increased loss provision or reversed amount thereof shall be recorded into the current
profit or loss as impairment losses or gains.For contract assets that contain significant financing components the Company has made the accounting policy choice and selected
the simplified model of expected credit loss measuring the loss provision according to the amount of expected credit loss of the
entire duration.
17. Inventory
(1) Inventories Classification
Inventories include development land held for sale or consumption in the process of development and operation development
products temporarily leased development products which intended for sale relocation housing stock materials inventory equipment
and low-value consumables etc. as well as development costs in the process of development.
(2) Cost Flow Assumption
1) Send-out materials shall adopt the moving weighted average method.
2) During the development of the project the development land shall be included in the development cost of the project by the floor
area apportion of the developed products.
3) Send-out developed products shall be accounted by specific identification method.
4) The temporarily leased development products which intended for sale and relocation housing shall be amortized averagely by
stages according to the expected useful life of the same kind of fixed assets of the Company.
5) If the public supporting facilities are completed earlier than the relevant development products after the final account of the public
supporting facilities， it shall be account into the development cost of the relevant development projects according to the buildingarea; If the public supporting facilities are completed later than the relevant development products the relevant development products
shall withhold the public supporting facilities fees and adjust the relevant development product costs according to the difference
between the actual occurrence and the withhold amount after the completed public supporting facilities' final accounts.
(3) Recognition basis of Net Realizable Value of Inventory
On the balance sheet date inventory shall be measured at the lower of cost or net realizable value and provision shall be made for
falling price of inventories on the ground of the difference between the cost of each item of inventories and the net realizable value.Inventories directly for sale under normal producing process to the amount after deducting the estimated sale expense and relevant
taxes from the estimated sell price of the inventory the net realizable value has been recognized; inventories which need to be
processed under normal producing process to the amount after deducting the estimated cost of completion estimated sale expense
and relevant taxes from the estimated sale price of produced finished goods the net realizable value has been recognized; on the
balance sheet date in the same item of inventories if some have contractual price agreement while others do not the net realizable
value shall be recognized respectively and compared with their cost and the amount of provision withdrawal or reversal for falling
price of inventories shall be recognized respectively.
(4) Inventory System for Inventories
Inventory system: Perpetual inventory system
(5) Amortization Method of the Low-value Consumption Goods and Packing Articles
1) Low-value Consumption Goods
One-off amortization method
2) Packing Articles
One-off amortization method
132ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
18. Assets Held for Sale
The Company divides its components (or non-current assets) meeting the following conditions into available for sale assets: (1)
Assets can be sold immediately under the current conditions according to the practice of selling such assets or disposal groups in
similar transactions; (2) The sale is likely to occur and a resolution has been made on a sale plan and a firm purchase commitment is
obtained (a firm purchase commitment refers to a legally binding purchase agreement signed between an enterprise and other parties
which contains important terms such as transaction price time and severe penalty for breach of contract to minimize the possibility
of major adjustment or cancellation of the agreement. The sale is expected to be completed within a year. It has been approved by
relevant authorities or regulatory authorities according to relevant regulations.The Company adjusts the estimated net residual value of available for sale assets to the net amount of its fair value minus the selling
expenses (which shall not exceed the original book value of the assets available for sale). The difference between the original book
value and the adjusted estimated net residual value shall be included in the current profit and loss as the loss of asset impairment and
provisions for impairment of assets available for sale shall be made. For the amount of impairment loss of disposal group available
for sale recognized the book value of goodwill of the disposal group shall be offset first and then the book value of disposal group
shall be offset in proportion according to the share of the book value of non-current assets in the disposal group measured according
to relevant standards.When the net amount of fair value of non-current assets available for sale minus the selling expenses increases on the subsequent
balance sheet date the amount previously written down shall be restored and reversed within the amount of asset impairment loss
recognized after being classified as available for sale assets and the reversed amount shall be included in the current profits and
losses. The impairment loss of assets recognized before being classified as available for sale assets shall not be reversed. When the
net amount of fair value of disposal group available for sale minus the selling expenses increases on the subsequent balance sheet
date the amount previously written down shall be restored and reversed within the amount of asset impairment loss recognized as
non-current assets in the disposal group measured according to this Standard after being classified into the categories available for
sale assets and the reversed amount shall be included in the current profits and losses. The book value of goodwill that has been
offset and the impairment loss of non-current assets measured according to relevant standards shall not be reversed before they are
classified as available for sale assets. The subsequent reversal amount of asset impairment loss recognized as disposal group
available for sale shall be increased in proportion to the share of the book value of non-current assets in the disposal group except
goodwill which are measured according to relevant standards.In case that an enterprise loses its control over a subsidiary due to sale of its investment in the subsidiary the investment in the
subsidiary to be sold shall be divided into the available for sale category in individual financial statement of the parent company
when the proposed investment in the subsidiary meets the conditions for classification of available for sale category and all assets
and liabilities of the subsidiary shall be classified into available for sale category in the consolidated financial statements no matter
whether the enterprise retains part of equity investment after the sale.
19. Investments in Debt Obligations
Not applicable.
20. Investments in other Debt Obligations
Not applicable.
21. Long-term Receivable
Refer to Note V-11. Financial Instrument for details.
22. Long-term Equity Investments
(1) Judgment of Joint Control and Significant Influences
133ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
The term "joint control" refers to the joint control over an arrangement in accordance with the related agreements which does not
exist unless the participants sharing the control power agree with each other about the related arranged activity. The term "significant
influences" refers to the power to participate in making decisions on the financial and operating policies of an enterprise but not to
control or do joint control together with other parties over the formulation of these policies.
(2) Recognition of Investment Cost
1) If the business combination is under the common control and the acquirer obtains long-term equity investment in the consideration
of cash non-monetary asset exchange bearing acquiree’s liabilities or the issuance of equity securities the initial cost is the carrying
amount of the proportion of the acquiree’s owner’s equity at the acquisition date. The difference between the initial cost of the long-
term equity investment and the carrying amount of the paid combination or the total amount of the issued shares should be adjusted
to capital surplus. If the capital surplus is not sufficient for adjustment retained earnings are adjusted respectively.In cases of step-by-step implementation of business combinations under common control the initial investment cost of the
investment shall be the share of the acquired entity's equity attributable to the acquiring entity on the acquisition date calculated
based on the ownership percentage. The difference between the initial investment cost and the sum of the carrying value of the
original long-term Equity Investments and the carrying value of any additional consideration paid for further shares acquired on the
acquisition date is adjusted to share premium (capital surplus or share premium). If the share premium is insufficient it is offset
against retained earnings.
2) For business combinations not under the same control the fair value of the combination consideration paid by it on the acquisition
date shall be its initial investment cost.
3) Except for business combination: If it is acquired by paying cash the actual acquisition price shall be taken as its initial investment
cost; if it is acquired by issuing equity securities the fair value of the issued equity securities shall be taken as its initial investment
cost; if it is acquired by the investment of the investors the value agreed in the investment contract or agreement shall be taken as its
initial investment cost (except when the agreed value is considered unfair).
(3) Method of subsequent measurement and recognition of profit or loss
For long-term equity investments in investees over which the Company has control the cost method is used in the Company's
individual financial statements; for long-term equity investments with joint control or significant influence the equity method is
applied.Under the cost method long-term equity investments are valued at the initial investment cost. Except for the price actually paid at the
acquisition of investment or the declared but undistributed cash dividends or profits included in the consideration the Company
recognized the return on investment of the current period in accordance with the cash dividends or profits declared and distributed by
the investee with consideration given to the impairment of long-term investments based on applicable impairment policies.For long-term equity investment accounted for using the equity method if the initial cost of long-term equity investment is greater
than the fair value of identifiable net assets of the invested company gained from the investment the excess shall be included in the
initial investment cost of the long-term equity investment. If the initial investment cost is smaller than the fair value of identifiable
net assets of the invested company gained from the investment the difference shall be included in the profit and loss for the current
period and the cost of long-term equity investments shall be adjusted.Under the equity method after acquiring long-term equity investments the investment gains or losses are realized based on the share
of net profit or loss that the investee entity shall be entitled to or share. The long-term equity investment's carrying value is adjusted
accordingly. When the share of the net profits and losses of the investee is recognized the fair value of the investee's identifiable
assets at the time of obtaining the investment shall be used as the basis. This is done in accordance with the Company's accounting
policies and accounting period and internal transaction gains and losses with joint ventures and associates are offset based on the
ownership proportion attributable to the investing company (except when internal transaction losses are related to asset impairment
134ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
losses in which case they shall be fully recognized). Subsequent to adjusting the net profits of the invested institution after
recognition. The investor reduces the carrying value of long-term equity investments correspondingly when calculating the portion to
be received based on the cash dividends or profits declared to be distributed by the invested company. The Company shall recognize
the net losses of the invested company until the carrying value of the long-term equity investment and other long-term rights and
interests which substantially form the net investment made to the invested company are reduced to zero unless the Company has the
obligation to undertake extra losses. As for other changes in owners' equity except for the net profit and loss of the invested company
the Company shall adjust the carrying value of the long-term equity investment and include it in the owners' equity.
(4) Determining the basis of common control and significant influence on the investee
The investor controls the investee means that the investor has power over the investee enjoys variable returns by participating in the
relevant activities of the investee and has the ability to use the power over the investee to affect the amount of returns. Significant
influence means that the investor has the rights to participate in the decision-making of the financial and operating policies of the
investee but cannot control or jointly control the formulation of these policies with other parties.
(5) Disposal of long-term equity investments
1) Partial disposal of long-term equity investments in a subsidiary without losing control
In the case of a partial disposal of long-term equity investments in a subsidiary without losing control the variance between the
disposal proceeds and the corresponding carrying value of the disposed investment is recognized as current investment income.
2) Partial disposal of equity investments or other reasons for losing control of a subsidiary
In cases where control over a subsidiary is lost due to the disposal of equity investments or other reasons the carrying value of long-
term equity investments corresponding to the disposed equity shall be transferred. The difference between the proceeds from the sale
and the carrying value of the disposed long-term equity investment shall be recognized as investment income (loss). At the same time
the remaining equity shall be recognized at its carrying value as long-term equity investments or other related financial assets. If the
remaining equity after the disposal can exercise joint control or significant influence over the subsidiary accounting treatment shall
be conducted in accordance with relevant regulations on the conversion from the cost method to the equity method.
(6) Impairment test method and impairment provision method
When there is objective evidence indicating impairment of the investment in subsidiaries joint ventures and cooperative
enterprises on the balance sheet date corresponding provision for impairment shall be made according to the difference between
the book value and recoverable amount.
23. Investment Property
Measurement mode of investment real estates
Measurement of cost method
Depreciation or amortization method
1. The term "investment real estate" includes the right to use any land which has already been rented the right to use any land which
is held and prepared for transfer after appreciation and the right to use any building which has already been rented.
2. The Company initially measures the investment property according to the costs and adopts the cost method in the subsequent
measurement of investment property and adopts the same methods with fixed assets and intangible assets to withdraw depreciation
or amortization. When there is any indication of impairment of investment property on the balance sheet date corresponding
provision for impairment shall be made according to the difference between the book value and recoverable amount.
135ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
24. Fixed Assets
(1) Recognized Standard of Fixed Assets
The term "fixed assets" refers to the tangible assets that simultaneously possess the features as follows: they are held for the sake
of producing commodities rendering labor service renting or business management; and their useful life is in excess of one fiscal
year. Fixed assets are recorded at actual cost at the time of acquisition and depreciated using the straight-line method from the
second month after they reach their intended serviceable condition.
(2) Depreciation Method
Category Depreciation method Useful life (year) Expected net salvagevalue Annual deprecation
Straight-line
depreciation 20-25 5-10 3.6-4.75
Transportation Straight-linedepreciation 5 5 19
Other equipment Straight-linedepreciation 5 5 19
Machinery equipment Straight-linedepreciation 5 5 19
Decoration of fixed Straight-line
assets depreciation 5 - 20
25. Construction in Progress
26. Borrowing Costs
1. Recognition Principle of Capitalization of Borrowing Costs
Where the borrowing costs incurred to the Company can be directly attributable to the acquisition and construction or production of
assets eligible for capitalization it shall be capitalized and recorded into the costs of relevant assets. Other borrowing costs shall be
recognized as expenses when it occurred and shall be recorded into the current profits and losses.
2. Capitalization Period of Borrowings Costs
(1) The borrowing costs shall not be capitalized unless they simultaneously meet the following requirements: 1) The asset
disbursements have already incurred; 2) The borrowing costs have already incurred; 3) The acquisition and construction or
production activities which are necessary to prepare the asset for its intended use or sale have already started.
(2) Where the acquisition and construction or production of a qualified asset is interrupted abnormally and the interruption period
lasts for more than 3 months the capitalization of the borrowing costs shall be suspended. The borrowing costs incurred during such
period shall be recognized as expenses and shall be recorded into the profits and losses of the current period till the acquisition and
construction or production of the asset restarts.
(3) When the acquisition and construction or production of a qualified asset eligible for capitalization are available for its intended
use or sale the capitalization of borrowing costs shall be stopped.
3. Capitalized rate and amount of borrowing costs
To the extent that funds are borrowed specifically for the purpose of acquiring or constructing a qualifying asset the amount of
borrowing costs eligible for capitalization on that asset is determined as the actual interest costs (including amortization of discount
and premium confirmed according to effective interest method) incurred on that borrowing during the period less any investment
income on the temporary investment of the borrowing. To the extent that funds are borrowed generally and used for the purpose of
acquiring or constructing a qualifying asset the amount of borrowing costs eligible for capitalization shall be determined by applying
a capitalization rate to the weighted average of excess of accumulated expenditures on qualifying asset over that on specific purpose
136ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
borrowing. The capitalization rate is determined by calculating the weighted average interest rate on general borrowings.
27. Intangible Assets
(1) Useful life and the basis for its determination estimation amortization methodology or review procedures
1. Intangible assets include right to use land sites use right of software etc. and conduct the initial measurement according to the
costs.
2. With regard to intangible assets with limited service life it shall be amortized systematically and reasonably within their service
life according to the expected implementation of economic interests related to the intangible assets. If it can’t recognize the expected
implementation reliably it shall be amortized by straight-line method. The specific useful lives are as follows:
Items Useful life for amortization (years)
Use right of lands Statutory life of land use right
Use right of software 5
The intangible assets with uncertain service life shall not be amortized and the Company rechecks the service life of the intangible
assets in every accounting period. For intangible assets with uncertain service the recognition basis is without certain service life and
expected benefit life.
3. For intangible assets with definite service life when there is any indication of impairment on the balance sheet date corresponding
provision for impairment shall be made according to the difference between the book value and recoverable amount; for intangible
assets with uncertain service life and those not ready for service impairment test shall be conducted every year no matter whether
there is any indication of impairment.
(2) The scope of R&D expenditure collection and the related accounting treatment
1. The scope of R&D expenditure
The Company classifies all expenses linked to R&D activities as R&D expenditures covering R&D employee remuneration
material input costs depreciation charges and amortization expenses.
2. The related accounting treatment of R&D expenditure
The expenditures in the research stage are included in the current profits and losses when incurred. An intangible asset arising from
the development phase of an internal project is recognized if the Company can demonstrate all of the following: (1) the technical
feasibility of completing the intangible asset so that it will be available for use or sale; (2) its intention to complete the intangible
asset and use or sell it; (3) how the intangible asset will generate probable future economic benefits among other things the
Company can demonstrate the existence of a market for the output of the intangible asset or the intangible asset itself or if it is to be
used internally the usefulness of the intangible asset; (4) the availability of adequate technical financial and other resources to
complete the development and to use or sell the intangible asset; and (5) its ability to measure the expenditure attributable to the
intangible asset reliably during its development.
28. Impairment of Long-term Assets
For long-term assets such as long-term equity investments investment property at cost model fixed assets construction in progress
and intangible assets with finite useful lives the assessment of potential indications of asset impairment is conducted on the balance
sheet date. For goodwill recognized in a business combination and intangible assets with indefinite useful lives no matter whether
there is an indication of impairment an impairment test is performed annually. An impairment test on goodwill is performed on a
related asset group or asset group portfolio.The existence of the following signs indicates that the assets may be impaired:
(1) The market price of the assets has significantly dropped in the current period with a decline much higher than expected due to the
137ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
passage of time or normal usage; (2) The economic technological or legal environment in which the business operates as well as the
market in which the assets are located is undergoing or expected to undergo significant changes in the current period or in the near
future adversely affecting the business; (3) Market interest rates or other market investment returns have increased in the current
period impacting the discount rate used by the business to calculate the present value of expected future cash flows from the assets
resulting in a significant decrease in the recoverable amount of the assets; (4) There is evidence indicating that the assets are obsolete
or their physical condition has deteriorated; (5) The assets have been or will be idle discontinued or planned for early disposal; (6)
Internal reports within the business show that the economic performance of the assets is or will be lower than expected such as the
net cash flows generated by the assets or the operating profit (or loss) achieved being significantly lower than (or higher than) the
estimated amount; (7) Other indicators suggesting that the assets may have been impaired.If there is any sign of impairment of the assets their recoverable amount shall be estimated. The measurement result of the
recoverable amount shows that if the recoverable amount of the assets is lower than their book value the book value of the assets
shall be written down to the recoverable amount and the written-down amount shall be recognized as asset impairment losses which
shall be included in the profit and loss for the current period and the corresponding asset impairment provision shall be accrued at
the same time.
29. Long-term Prepaid Expenses
Long-term prepaid expense refers to various expenses that the company has incurred but shall be borne by the current and
subsequent periods for a period of more than one year (excluding one year). Long-term prepaid expense shall be recorded into the
account according to the actual accrual. Long-term prepaid expense shall be amortized averagely within benefit period or specified
period. In case of no benefit in the future accounting period the amortized value of such project that fails to be amortized shall be
transferred into the profits and losses of the current period.
30. Contract Liabilities
The Company presents contract assets or contract liabilities on the balance sheet according to the relationship between the fulfillment
of its contract performance obligations and its customers’ payment. Obligations to be fulfilled by the Company of transferring
commodities or providing services to customers as the Company has received or should receive customers’ considerations are
presented as contract liabilities.
31. Payroll
(1) Accounting Treatment of Short-term Compensation
During the accounting period when the employees providing the service for the Company the actual short-term compensation shall
be recognized as liabilities and be recorded into the current profits and losses or related assets costs.
(2) Accounting Treatment of the Welfare after Demission
The Company's welfare after demission plans is divided into defined contribution plans and defined benefit plans (1) During the
accounting period when the employee providing service for the Company the amount paid in line with the setting drawing plan will
be recognized as liabilities and recorded into current profits or losses or cost of relevant assets.
(2) The accounting treatment of defined benefit plans usually consists of the following steps:
1) According to the expected cumulative welfare unit method adopt unbiased and mutually consistent actuarial assumptions to
evaluate related demographic variables and financial variables measure the obligations generated from defined benefit plans and
recognize the period in respect of related obligations. Meanwhile discount the obligations generated from defined benefit plans to
recognize their present value and the current service costs;
2) If there are any assets in a defined benefit plan the deficit or surplus formed from the present value of the defined benefit plan
obligations less the fair value of the defined benefit plan assets shall be recognized as net liabilities or net assets of a defined benefit
plan. If there is any surplus in a defined benefit plan the net assets of the plan shall be measured at the lower of the surplus or the
138ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
upper asset limit;
3) At the end of the period the staff remuneration costs generated from a defined benefit plan shall be recognized as services costs
net interests of the net liabilities or net assets of the plan and changes from the re-measurement of the net liabilities or net assets of
the plan. Service costs and net interests of the net liabilities or net assets of the plan shall be recorded into the current profits or losses
or related asset costs while changes from the re-measurement of the net liabilities or net assets of the plan shall be recorded into
other comprehensive income and shall not be transferred back to profits or losses in subsequent accounting periods. But the amounts
recognized in other comprehensive income may be transferred within the equity scope.
(3) Accounting Treatment of Demission Welfare
When the Company is unable to unilaterally withdraw the plan on the cancellation of labor relationship or the layoff proposal or
when recognizing the costs or expenses (the earlier one between the two) related to the reorganization of paying the demission
welfare should recognize the payroll liabilities from the demission welfare and include in the current gains and losses.
(4) Accounting Treatment of Other Welfare of the Long-term Employees
The Company provides the other long-term employee benefits for the employees and for those met with the defined contribution
plans accounting treatment should be conducted according to the related regulations of the defined contribution plans; the for the
others long-term employee benefits except for the former accounting treatment should be conducted according to the related
regulations of the defined benefit plans. In order to simplify the related accounting treatment the payrolls shall be recognized as
service costs the net amount of interest of net liabilities and net assets of other welfare of the long-term employees. The total net
amounts made up from the changes of measuring the net liabilities and net assets of other welfare of the long-term employees again
shall be recorded into the current profits and losses or related assets costs.
32. Provisions
1. The obligation such as external guaranty litigation or arbitration product quality assurance loss contract pertinent to a
contingencies shall be recognized as the provisions when the following conditions are satisfied simultaneously: * That obligation is
a current obligation of the enterprise; * It is likely to cause any economic benefit to flow out of the enterprise as a result of
performance of the obligation; and* The amount of the obligation can be measured in a reliable way.
2. The Company shall conduct the initial measurement to provisions according to the best estimate number needed for performing the
related current obligation and recheck the carrying value of accrued liabilities on balance sheet date.
33. Share-based Payment
Not applicable.
34. Other Financial Instruments such as Preference Shares and Perpetual Bonds
Not applicable.
35. Revenue
The Accounting Policy Adopted for Recognition and Measurement of Revenue Disclosed by Type of Business
1. Recognition of revenue
The Company gains revenue mainly from property sales property management sales of software and property leasing (refer to 39.Leasing for more detail).The Company recognizes revenue when it has fulfilled the obligation of contract performance namely when it has acquired the
control of the related commodity. The acquisition of control over a commodity refers to the capacity to control the use of the
commodity and to gain almost all economic interests thereof.
2. The Company judges whether a contract performance obligation is “a contract performance obligation fulfilled in a timeperiod” or “a contract performance obligation fulfilled at a time point” according to the terms in revenue standards and
recognizes revenue according to the following principles.
(1) When the Company meets one of the following conditions the obligation should be classified as a contract performance
139ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
obligation fulfilled in a specific time period:
1) The customer gains and consumes the economic interests brought by the Company’s contract performance when the Company
performs the contract.
2) The customer is able to control the assets in progress during the Company’s contract performance.
3) The assets produced during the Company’s contract performance have irreplaceable use and the Company has the right to collect
payment in respect of its completed contract performance accumulated as of now throughout the entire contract period.For a contract performance obligation fulfilled in a time period the Company recognizes revenue according to the progress towards
contract completion in that period but excluding the case when such progress cannot be reasonably determined. The Company uses
the output or input method to determine the right progress towards contract completion by considering the nature of the commodity.
4) For one that is classified as a contract performance obligation fulfilled at a time point instead of in a time period the Company
recognizes revenue when the customer acquires the control over the related commodity.In judging whether the customer has acquired the control over a commodity the Company considers the following signs:
1) The Company is entitled to the current right of payment collection in respect of the commodity. In other words the customer has
the current obligation to pay for the commodity.
2) The Company has transferred the legal ownership of the commodity to the customer. In other words the customer has owned the
legal ownership of the commodity.
3) The Company has transferred the physical commodity to the customer. In other words the customer has taken physical possession
of the commodity.
4) The Company has transferred the major risks and remunerations in respect of the ownership of the commodity. In other words the
customer has acquired the major risks and remunerations in respect of the ownership of the commodity.
5) The customer has accepted the commodity.
6) Other signs indicating that the customer has acquired control over the commodity.
3. Specific policies of the Company for recognizing revenue:
1) Real Estate Sales Contracts
The realization of sales revenue shall be recognized under the following conditions: the developed products have 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 products have been transferred to the buyer at the same time the Company shall no longer
retain the continuous management rights normally associated with ownership and effectively control the sold developed products the
revenue amount can be measured reliably the related economic benefits are likely to flow in and the related costs that have occurred
or will occur can be measured reliably. For the sale of self-occupied housing the realization of sales income shall be recognized
under the following conditions: the main risks and rewards of ownership of self-occupied houses are transferred to the buyer the
Company will no longer retain the continuous management rights normally associated with ownership and effectively control the
sold development products the amount of income can be measured reliably relevant economic benefits are likely to flow in the
relevant costs that have occurred or will occur can be measured reliably. Only recognizing the sales income realization under the
following conditions: acquired the real estate completed and accepted as qualified (the completion and acceptance reports) signed an
irreversible sales contract obtained the buyer's payment certificate (for those who chose bank mortgage the first installment and the
full amount of bank mortgage must be required; If a bank mortgage is not selected for self-payment the full amount of the property
is received) and the revenue is recognized as the earliest of the point in time when the notice of repossession is issued (which is
deemed to be the same as repossession if the owner fails to complete the formalities within the stipulated period due to the owner's
failure to do so in a timely manner) and the point in time when the owner actually repossesses the property.
2) Providing Labor Services
If the provision of labor services can be reliably estimated (all the following conditions are met: * The amount of income can be
measured reliably; * The relevant economic benefits are likely to inflow to the Company; * The progress of the transaction can be
reliably determined; * The cost incurred and to be incurred in the transaction can be measured reliably) it shall recognize the
140ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
revenue from providing services employing the percentage-of-completion method and confirm the completion of labor service
according to the costs incurred as a percentage of the total estimated costs. If the Company can’t on the date of the balance sheet
reliably estimate the outcome of a transaction concerning the labor services it provides it shall be handled under the following
conditions: If the cost of labor services incurred is expected to be compensated the revenue from the providing of labor services shall
be recognized in accordance with the amount of the cost of labor services incurred and the cost of labor services shall be carried
forward at the same amount; If the cost of labor services incurred is not expected to compensate the cost incurred should be included
in the current profits and losses and no revenue from the providing of labor services may be recognized.Property management revenue shall be recognized when property management services have been provided economic benefits
related to property management services can flow into the enterprise and costs related to property management can be reliably
measured.
3) Transferring the Right to Use Assets
The revenue of transferring the right to use assets may not be recognized unless the following conditions are both met: the relevant
economic benefits are likely to inflow to the Company; and the revenue can be reliably measured. The interest income shall be
recognized according to the time and actual interest rate in which other people use the Company’s monetary funds. Royalty revenue
shall be recognized according to the chargeable time and method stipulated in related contracts and agreements.According to the lease date and lease amount agreed in the lease contract and agreement the realization of rental property income
shall be recognized when relevant economic benefits are likely to flow in.
4) Software sales revenue
* Revenue recognition and measurement methods for sales of custom software and independent software products
Custom software refers to the special software designed and developed after the full on-site investigation of the user's business
according to the software development contract signed with the customer based on the actual needs of the user and the resulting
developed software is not universal. Revenue is recognized over time based on the progress of completed performance obligations
over the contract period only if the goods produced by the Company in the course of performance have an irreplaceable use and the
Company is entitled to receive payment for the cumulative portion of performance completed to date throughout the contract period
with the progress of completed performance obligations determined by the proportion of the contract costs actually incurred to
complete the performance obligations to the total estimated contract costs. Otherwise the revenue is recognized at a certain point in
time.For sales contracts of independent software products signed with the customer the customer directly purchases the standard version
of the software i.e. the real estate and facilities management platform and the corresponding modules are deployed by
implementation personnel according to the customer's requirements. In this case the performance obligations are to be performed at
a certain point in time. The revenue is recognized after the Company delivers the product to the customer and the customer accepts
the product.* Revenue recognition and measurement methods for systems integration contracts
System integration includes the sale and installation of purchased merchandise and software products. The revenue is recognized
when the Company has transferred the primary risks and rewards of the ownership of the purchased merchandise to the purchaser;
the Company neither retained the continued management rights usually associated with the ownership nor effectively controlled the
sold goods; the installation and commissioning of the system have been completed and the system has been put into trial operation
or the initial inspection report of the purchaser is obtained; the economic benefits relevant to the transaction are likely to flow into the
Company the relevant costs can be reliably measured.* Revenue recognition and measurement methods for technical service revenue
Technical service revenue mainly refers to the business of providing consulting implementation and after-sales services of products
to customers as required by contracts. If a service period is agreed upon in a contract it is considered as a performance obligation to
be performed within a certain period of time and revenue is recognized for services settled with the customer in accordance with the
contracted service period during the service provision period.
141ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
5) Other Business Income
(5) Other operating income is recognized when the customer obtains control of the relevant goods as stipulated in the relevant
contracts or agreements upon the fulfillment of contractual obligations.
4. Measurement of Revenue
The Company should measure revenue according to the transaction prices apportioned to each of the individual contract performance
obligations. In determining a transaction price the Company considers the impact of a number of factors including variable
consideration significant financing components in contracts non-cash consideration and consideration payable to customers.
(1) Variable consideration
The Company determines the best estimate of variable consideration according to the expected value or the amount most likely to
occur. But a transaction price containing variable consideration should not exceed the amount from the accumulated recognized
revenue that will probably not have any significant reversal when related uncertainties are eliminated. When assessing whether the
significant reversal of accumulated recognized revenue is almost impossible or not a company should concurrently consider the
possibility and weight of the revenue reversal.
(2) Significant financing component
When a contract contains any financing component the Company should determine the transaction price according to the amount
payable that is assumed to be paid in cash by the customer when it acquires control over the commodity. The difference between the
transaction price and the contract consideration should be amortized in the effective interest method during the contract period.
(3) Non-cash consideration
When a customer pays non-cash consideration the Company should determine the transaction price according to the fair value of the
non-cash consideration. When such fair value cannot be reasonably estimated the Company will indirectly determine the transaction
price by reference to the individual price committed by the Company for transferring the commodity to the customer.
(4) Consideration payable to a customer
For consideration payable to a customer the Company should deduct the transaction price from the consideration payable and
deduct the revenue for the current period at either the recognition of related revenue or the payment (or committed payment) of the
consideration to the customer whichever is earlier but excluding the case in which the consideration payable to the customer is for
the purpose of acquiring from the customer other commodities that can be obviously distinguished.If the Company’s consideration payable to a customer is for the purpose of acquiring from the customer other commodities that can
be obviously distinguished the Company should confirm the commodity purchased in the same way as in its other purchases. When
the Company’s consideration payable to a customer exceeds the fair value of the commodity that can be obviously distinguished the
exceeded amount should be used to deduct the transaction price. If the fair value of the commodity acquired from the customer that
can be obviously distinguished cannot be reasonably estimated the Company should deduct the transaction price from the
consideration payable to the customer.Differences in methods for the recognition and measurement of revenue caused by different business models for the same type of
business
Not applicable.
36. Contract Costs
Contract costs comprise contract performance cost and contract acquisition cost.The cost incurred by the Company from performing a contract is recognized into an asset as contract performance cost when it meets
the following conditions:
(1) This cost directly relates to an existing contract or a contract expected to be acquired. It consists of direct labor direct materials
manufacture costs (or similar costs) costs specified to be borne by the customer and other costs incurred from this contract solely.
(2) This cost has increased the Company’s sources that are used to fulfill its contract performance obligations in the future.
(3) This cost is expected to be recovered.
142ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
An incremental cost that is incurred by the Company for acquiring a contract and expected to be recovered is recognized into an asset
as contract acquisition cost. However for such asset with an amortization period of less than one year the Company recognizes them
into current profit/loss at their occurrence.Assets related to contract costs are amortized on the same basis for recognizing the revenue from commodities or services related to
such assets.When the carrying value of an asset related to contract costs is higher than the difference between the following two items the
Company will withdraw impairment provision for the exceeded part and recognize it as asset impairment loss:
(1) Residual consideration expected to be gained from transferring commodities and services related to this asset;
(2) Costs expected to be incurred from transferring such commodities or services.
When the aforementioned asset impairment provision is reversed later the carrying value of the asset after the reversal should not
exceed its carrying value on the reversal date under the assumption of no withdrawal of impairment provision.
37. Government Grants
1. If the government subsidies meet with the following conditions at the same it should be recognized: (1) The entity will
comply with the condition attaching to them; (2) The grants will be received from government. If a government subsidy is a
monetary asset it shall be measured according to the amount received or receivable. If a government subsidy is a non-monetary asset
it shall be measured at its fair value and shall be measured at a nominal amount when the fair value cannot be obtained reliably.
2. Judgment basis and accounting methods of government subsidies related to assets
The government subsidies that are acquired for construction or form long-term assets in other ways according to government
documents shall be defined as asset-related government subsidies. For those not specified in government documents the judgment
shall be made based on the compulsory fundamental conditions for acquiring the subsidies. If the subsidies are acquired with
construction or the formation of long-term assets in other ways as fundamental conditions they shall be recognized as asset-related
government subsidies. For asset-related government subsidies the carrying value of related assets shall be written down or
recognized as deferred income. If asset-related government subsidies are recognized as deferred income it shall be recorded into
profits or losses by period in a reasonable and systemic manner within the life of related assets. Government subsidies measured at
the nominal amount shall be directly recorded into current profits or losses. If related assets are sold transferred disposed of or
destroyed before the end of their life the undistributed balance of related deferred income shall be transferred into the profits or
losses for the period of the asset disposal.
3. Judgment basis and accounting treatment of profits-related government subsidies
Government subsidies other than asset-related government subsidies shall be defined as profits-related government subsidies. For
government subsidies consisting of both asset-related parts and profits-related parts which are difficult to judge whether they are
related to assets or profits the entirety shall be classified as profits-related government subsidies. Profits-related government
subsidies that are used to compensate the related future expenses or losses shall be recognized as deferred income and shall be
included into the current profit/losses or offset relevant costs during the period when the relevant expenses or losses are recognized;
those subsidies used to compensate the related expenses or losses incurred shall be directly included into the current profits/losses or
offset relevant costs.
4. Government subsidies related to the Company’s routine operating activities shall be included into other income or write down
related costs according to the economic business nature. Government subsidies not related to the Company’s routine activities shall
be included into non-operating income and expenditure.
38. Deferred Income Tax Assets/Deferred Income Tax Liabilities
1. In accordance with the balance (the item not recognized as assets and liabilities can confirm their tax bases according to the tax law
the balance between the tax bases and its carrying amount) between the carrying amount of assets or liabilities and their tax bases
deferred tax assets and deferred tax liabilities should be recognized at the tax rates that are expected to apply to the period when the
asset is realized or the liability is settled.
143ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
2. A deferred tax asset shall be recognized within the limit of taxable income that is likely to be obtained to offset the deductible
temporary differences. At the balance sheet date where there is strong evidence showing that sufficient taxable profit will be
available against which the deductible temporary difference can be utilized the deferred tax asset unrecognized in prior period shall
be recognized.
3. The Company assesses the carrying amount of deferred tax asset at the balance sheet date. If it’s probable that sufficient taxable
profit will not be available against which the deductible temporary difference can be utilized the Company shall write down the
carrying amount of deferred tax asset or reverse the amount written down later when it’s probable that sufficient taxable profit will
be available.
4. The current income tax and deferred income tax of the Company are recorded into the current gains and losses as income tax
expenses or revenue except in the following circumstances: (1) Business combination; (2) The transaction or event directly included
in owner’ equity.
39. Lease
(1) Accounting treatment for leases as the lessee
On the beginning date of the lease term the Company will recognize the lease with a lease term not exceeding 12 months and
exclude the purchase option as a short-term lease. Leases with lower value when a single leased asset is a brand-new asset are
identified as low-value asset leases. If the Company sublets or expects to sublet the leased assets the original lease shall not be
deemed as a low-value asset lease.The Company records the payments of short-term and low-value asset leases incurred during each period of the lease term in the
relevant asset costs or the profit or loss for the current period by the units-of-consumption method.The Company will recognize right-of-use assets and lease liabilities on the inception date of the lease term excluding the above
short-term and low-value asset leases.
1) Right-of-use assets
The right-of-use asset is measured at cost and the cost shall comprise: 1) the amount of the initial measurement of the lease liabilities;
2) any lease payments made at or before the commencement date less any lease incentives received; 3) any initial direct costs
incurred by the lessee; and 4) an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset
restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the
lease.The Company depreciates the right-of-use asset using the straight-line method. If it is reasonably certain that ownership of the leased
asset(s) will be obtained at the end of the lease term the Company depreciates the leased asset(s) over its/their remaining service life.If it is not reasonably certain that the ownership of the leasehold property will be obtained at the end of the lease term the Company
will depreciate the leased asset(s) over the lease term or the remaining service life whichever is shorter.
2) Lease liabilities
At the commencement date the Company measures the lease liabilities at the present value of the lease payments that are not paid at
that date The Company uses the interest rate implicit in lease as the rate of discount when calculating the present value of the lease
payments. The incremental interest rate on borrowing of the lessee will be used as the rate of discount if the interest rate implicit in
lease cannot be determined. The difference between the lease payment and its present value is regarded as an unrecognized financing
expense. Interest expense is recognized at the discount rate of the present value of the recognized lease payment during each period
of the lease term and is recorded in the profit and loss for the current period. Variable lease payments that are not covered in the
measurement of the lease liabilities are included in current profit or loss when actually incurred.After the commencement date if there is a change in the following items: (a) actual fixed payments; (b) amounts expected to be
payable under residual value guarantees; (c) an index or a rate used to determine lease payments; (d) assessment result or exercise of
purchase option extension option or termination option. the Company remeasures the lease liabilities based on the present value of
144ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
lease payments after changes and adjusts the carrying amount of the right-of-use asset accordingly. If the carrying amount of the
right-of-use asset is reduced to zero but there shall be a further reduction in the lease liabilities the remaining amount shall be
recognized into profit or loss.
(2) Accounting treatment of leases as the lessor
On the start date of the lease term the Company divides the lease that substantially transfers almost all risks and rewards related to
the ownership of the leased assets into finance leases except for operating leases.
1) Operating lease
The Company recognizes the lease payments receivable as rental earnings in each period within the lease term on a straight-line basis.The initial direct costs related to the operating lease are capitalized amortized within the lease term on the same basis as the
recognition of rental earnings and included in the profit or loss for the current period. Variable lease payments obtained by the
Company in relation to operating leases that are not included in the lease receivable are included in the profit or loss for the current
period when they are actually incurred.
2) Financial lease
At the commencement date the Company recognizes the finance lease payment receivable based on the net investment in the lease
(sum of the present value of unguaranteed residual value and lease receipts that are not received at the commencement date
discounted by the interest rate implicit in the lease) and derecognizes assets held under the finance lease. The Company calculates
and recognizes interest income using the interest rate implicit in the lease over the lease term.Variable lease payments not included in the measurement of the net investment in the lease are charged as profit or loss in the periods
in which they are incurred.
3) Underlease
The Company as the underlease lessor applied accounting treatment to the head lease agreement and the sublease agreement in
accordance with the accounting requirements of both the lessee and lessor. If a head lease is a short-term lease and simplified
accounting treatment was applied then it classifies the sub-lease as an operating lease.
(3) Sale and leaseback
1. The Company as the lessee
The Company assesses whether the asset transfer in a sale and leaseback transaction is a sale in accordance with relevant provisions
of the Accounting Standards for Business Enterprises No. 14 - Income.If the asset transfer in a sale and leaseback transaction is a sale the Company measures the right-of-use assets formed by the sale and
leaseback based on the portion of the original asset's carrying value that is related to the use right acquired by the leaseback and
recognizes related gains or losses only for the right transferred to the lessor.If the asset transfer in a sale and leaseback transaction is not a sale the Company continues to recognize the transferred asset and at
the same time recognizes a financial liability equivalent to the transfer income and conducts corresponding accounting treatment for
the financial liability in accordance with the Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement
of Financial Instruments.
2. The Company as lessor
The Company assesses whether the asset transfer in a sale and leaseback transaction is a sale in accordance with relevant provisions
of the Accounting Standards for Business Enterprises No. 14 - Income.If the asset transfer in a sale and leaseback transaction is a sale the Company applies other accounting standards for business
enterprises to the accounting treatment for asset purchase and conducts corresponding accounting treatment for asset lease in
accordance with the Accounting Standard for Business Enterprises No. 21 - Leases.If the asset transfer in a sale and leaseback transaction is not a sale the Company does not recognize the transferred asset but
recognizes a financial asset equivalent to the transfer income and conducts corresponding accounting treatment for the financial asset
in accordance with the Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial
Instruments.
145ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
40. Other Important Accounting Policies and Accounting Estimations
Confirmation standard and accounting handling method for operation termination
Components which meet one of the following conditions have been disposed or divided as held for sale category and can be
distinguished separately are confirmed as operation termination.
1) The component represents one important independent main business or one single main operation area.
2) The component is one part of a related plan which plans to dispose one independent main business or one single main operation
area.
41. Changes in Main Accounting Policies and Estimates
(1) Change of Accounting Policies
□Applicable □ Not applicable
Unit: RMB
Content and reason of changes in Name of statement item materially
Amount affected
accounting policies affected
Deferred income tax assets on 31
24500761.16
At the initiation of the lease transaction December 2022
the lessee acknowledges the lease Deferred income tax liabilities 31
liability and incorporates the right-of- 22737325.56December 2022
use asset without exempting the initial
recognition of deferred tax liabilities Surplus reserve 31 December 2022 5970.29
and assets resulting in the recognition Retained earnings 31 December 2022 1697650.08
of the respective deferred tax liabilities Minority interests 31 December 2022 59815.23
and deferred tax assets at the
transaction occurrence. Income tax expense for 2022 330314.64
Net profit for 2022 -330314.64
(2) Changes in Accounting Estimates
□Applicable□ Not applicable
(3) Adjustments to Financial Statement Items at the Beginning of the Year of the First Implementation of the New
Accounting Standards Implemented since 2023
□Applicable□ Not applicable
Note of adjustment
42. Other
In the Note of the financial statements the data of the period-beginning refers to the financial statement data on 1 January 2023;
the data of the period-end refers to the financial statement data on 31 December 2023; the Reporting Period refers to the 2023; the
same period of last year refers to the 2022. The same to the Company as the parent.
146ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
VI Taxes
1. Main Taxes and Tax Rates
Category of taxes Tax basis Tax rate
VAT Sales of goods or provision of taxableservices Note 1
Urban maintenance and construction tax Turnover tax payable Applied to 7% 5% 1% separately
according to the regional level
Enterprise income tax Taxable income 25%、20%、15%、16.5%
Added value generated from paid
VAT of land transfer of the use right of state-ownedlands and property right of above-ground 30%-60%
buildings and other attachments
Levied according to price: paid
according to 1.2% of the residual value
Real estate tax of the real estate’s original value afterdeducted 30% at once; levied according 1.2%、12%
to lease: paid according to 12% of the
rental income
Education surcharge Turnover tax payable 3%
Local education surcharge Turnover tax payable 2%
Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate
Name Income tax rate
Chongqing Shenzhen International Trade Center Property
15%
Management Co. Ltd.Shenzhen International Trade Center Property Management
15%
Co. Ltd. Chongqing Branch
Shenzhen Facility Management Community Co. Ltd 15%
Shenzhen Property Engineering and Construction Supervision
Co. Ltd. 20%
Shenzhen Julian Human Resources Development Co.Ltd. 20%
Shenzhen Jinhailian Property Management Co.Ltd. 20%
Shenzhen Zhongtongda House Xiushan Service Co.Ltd. 20%
Shenzhen Kangping Industry Co.Ltd. 20%
Shenzhen Teacher Family Training Co. Ltd. 20%
Shenzhen Education Industry Co. Ltd. 20%
Shenzhen Yufa Industry Co. Ltd. 20%
Chongqing Aobo Elevator Co. Ltd. 20%
Shenzhen SZPRD Yanzihu Development Co. Ltd. 20%
Shenzhen SZPRD Fuyuantai Development Co. Ltd. 20%
Shenzhen Social Welfare General Company 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 Guoguan Electromechanical Device Co. Ltd. 20%
147ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Shenzhen Shenshan Special Cooperation Zone Guomao
Property Development Co. Ltd. 20%
Shenzhen Helinhua Construction Management Co. Ltd. 20%
Shenzhen Guomao 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 International Trade Center Hotel Management Co.Ltd. 20%
Shenzhen Shenfubao Hydropower Municipal Service Co. Ltd. 20%
Shenzhen Jiayuan Property Management Co. Ltd. 20%
Shenzhen Guomao Shenlv Gardening Co.， Ltd. 20%Beijing Facility Home Technology Co. Ltd. 20%
Subsidiaries registered in Hong Kong area 16.50%
Subsidiaries registered in Vietnam area 20%
Other taxpaying bodies within the consolidated scope 25%
2. Tax Preference
According to the regulations of No. 2 Property Service of No. 37 Commercial Service among the encouraging category of the
Guidance Catalogue of Industry Structure Adjustment (Y2011) the western industry met with the conditions should be collected
the corporate income tax according to 15% of the tax rate. The subsidiaries of the Group Chongqing Shenzhen International Trade
Center Property Management Co. Ltd. and Shenzhen International Trade Center Property Management Co. Ltd. Chongqing
Branch applied to above policy.On 19 December 2022 Shenzhen Facility Management Community Technology Co. Ltd. successfully passed the re-evaluation for
its High-tech Enterprise Certificate. The company has been assigned certificate number GR202244204675 and the certificate is
valid for three years. As per the tax laws and regulations the company will be eligible for a preferential enterprise income tax rate
of 15% for the year 2023.According to the Announcement of the State Taxation Administration and the Ministry of Finance on Further Implementing the
Preferential Income Tax Policy for Small and Micro Enterprises (Announcement No. 13 of 2022 of the Ministry of Finance and
the State Taxation Administration) for small and micro-profit enterprises if their annual taxable income exceeds RMB1 million
but does not exceed RMB3 million from 1 January 2022 to 31 December 2024 the taxable income will be reduced by 25% and
the enterprise income tax rate will be 20%. According to the Announcement of the State Taxation Administration and the Ministry
of Finance on the Implementation of Preferential Income Tax Policies for Small and Micro Enterprises and Individual Industrial
and Commercial Entities (Announcement No. 6 of 2023 of the Ministry of Finance and the State Taxation Administration) from1
January 2023 to 31 December 2024 for the portion of the annual taxable income of small- and micro-sized enterprises not
exceeding RMB1 million the taxable income shall be reduced by 25% and subject to enterprise income tax at a rate of 20%.According to the Announcement of the State Taxation Administration and the Ministry of Finance on Further Supporting Small
and Micro Enterprises and Individual Industrial and Commercial Businesses through Relevant Tax and Fee Policies
148ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
(Announcement No. 12 of 2023 of the Ministry of Finance and the State Taxation Administration) for small and micro enterprises
the policy of applying a reduced rate of 25% for calculating the taxable income and paying enterprise income tax at a rate of 20%
will continue to be implemented until 31 December 2027. This policy applies to 29 subsidiaries including Shenzhen Property
Engineering and Construction Supervision Co. Ltd. and Shenzhen Julian Human Resources Development Co. Ltd.
3. Other
[Note 1]: Taxable items and tax rate of the VAT of the Company and its subsidiaries are as follows:
Type of the revenue General rate Percentage charges of
Sales of house property 9% 5%
Rent of real estate 9% 5%
Property service 6% 3%
Catering service 6% 3%
Others 13% --
VII. Notes to Main Items of Consolidated Financial Statements
1. Monetary Assets
Unit: RMB
Item Ending balance Beginning balance
Cash on hand 75265.01 43833.00
Bank deposits 2742094318.81 1512202363.19
Other monetary funds 6628892.90 5282697.64
Total 2748798476.72 1517528893.83
Of which: total amount deposited overseas 62161463.84 66436595.66
Other notes:
At the end of the period the amount of restriction in use by guaranteed pledged or frozen is RMB15659341.60 mainly including
the margin and interest of RMB3333604.61; the funds with limited use rights in bank deposits mainly include the bank frozen funds
of RMB3681570.32 and the interest on time deposits of RMB8644166.67. The above amount is not regarded as cash and cash
equivalents due to restrictions on use.The funds deposited overseas are mainly the balance of monetary assets of the overseas subsidiaries Shum Yip Development
Company Limited and Vietnam Shenguomao Property Management Co. Ltd.
2. Trading Financial Assets
Unit: RMB
Item Ending balance Beginning balance
Of which:
Of which:
Other notes:
149ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
3. Notes Receivable
(1) Notes Receivable Listed by Category
Unit: RMB
Item Ending balance Beginning balance
(2) Disclosure by Withdrawal Methods for Bad Debts
Unit: RMB
Ending balance Beginning balance
Category Carrying amount Bad debt provision Carrying Carrying amount Bad debt provision Carrying
Amount Proportion Amount Withdrawal value Withdrawal valueproportion Amount Proportion Amount proportion
Of
which:
Of
which:
If adopting the general mode of expected credit loss to withdraw bad debt provision of notes receivable:
□Applicable□Not applicable
(3) Bad Debt Provision Withdrawal Reversed or Recovered in the Current Period
Withdrawal of bad debt provision:
Unit: RMB
Beginning Changes in the current periodCategory balance Reversed or Ending balanceWithdrawal recovered Verification Others
Of which significant amount of recovered or transferred-back bad debt provision for the current period:
□Applicable□Not applicable
(4) Notes Receivable Pledged by the Company at the Period-end
Unit: RMB
Item Ending pledged amount
(5) Notes Receivable Which Had Endorsed by the Company or had Discounted and had not Due on the
Balance Sheet Date at the Period-end
Unit: RMB
Item Amount of recognition termination at the Amount of not terminated recognition atperiod-end the period-end
(6) Notes Receivable Written-off in Current Period
Unit: RMB
Item Written-off amount
Of which verification of significant notes receivable:
Unit: RMB
Verification Whether occurred
Name of the entity Nature Written-off amount Reason forverification procedures because of related-performed party transactions
Notes of the verification of notes receivable
150ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
4. Accounts Receivable
(1) Disclosure by Aging
Unit: RMB
Aging Ending carrying amount Beginning carrying amount
Within one year (including 1 year) 425235829.74 394914334.75
One to two years 83584196.31 31016372.76
Two to three years 19037312.67 12333910.99
More than three years 127356876.62 120622137.82
Three to four years 10334088.28 6141296.85
Four to five years 4135080.24 4392591.92
Over 5 years 112887708.10 110088249.05
Total 655214215.34 558886756.32
(2) Disclosure by Withdrawal Methods for Bad Debts
Unit: RMB
Ending balance Beginning balance
Category Carrying amount Bad debt provision Carrying amount Bad debt provision
Carrying value
Amount Proportion Amount Withdrawal Amount Proportion Amount Withdrawal
Carrying value
proportion proportion
Accounts
receivable
withdrawal
of Bad
debt 115895721.46 17.69% 113235195.18 97.70% 2660526.28 111808371.14 20.01% 109689294.54 98.10% 2119076.60
provision
separately
accrued
Of which:
Accounts
receivable
withdrawal
of bad debt 539318493.88 82.31% 39172566.28 7.26% 500145927.60 447078385.18 79.99% 29263546.48 6.55% 417814838.70
provision
of by
group
Of which:
Total 655214215.34 100.00% 152407761.46 23.26% 506088217.25 558886756.32 100.00% 138952841.02 24.86% 419933915.30
Bad debt provision separately accrued: 113235195.18
Unit: RMB
Beginning balance Ending balance
Name
Carrying Bad debt Carrying Bad debt Withdrawal Reason for
amount provision amount provision proportion withdraw
Shenzhen Jiyong Involved in
Properties & Resources 93811328.05 93811328.05 93811328.05 93811328.05 100.00% lawsuit and
Development Company unrecoverable
Shenzhen Tewei Industry Expected to be
Co. Ltd. 2836561.00 2836561.00 2836561.00 2836561.00 100.00% unrecoverable
Lunan Industry
Corporation 2818284.84 2818284.84 2818284.84 2818284.84 100.00%
Expected to be
unrecoverable
Shenzhen Hampoo Science
& Technology Co. Ltd. 1436020.29 1433070.29 1436020.29 1433070.29 99.79%
Expected to be
unrecoverable
Those with insignificant
single amount for which
bad debt provision 10906176.96 8790050.36 14993527.28 12335951.00 82.28%
Uncollectible for a
long period
separately accrued
151ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Total 111808371.14 109689294.54 115895721.46 113235195.18
Withdrawal of bad debt provision by group: 39172566.28
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Portfolio of credit risk features 305321229.88 27133657.43 8.89%
Portfolio of transactions with
other related parties 212618383.72 12038908.85 5.66%
Government portfolio 21378880.28
Total 539318493.88 39172566.28
Notes to the determination basis for the group:
If adopting the general mode of expected credit loss to withdraw bad debt provision of accounts receivable:
□Applicable□Not applicable
(3) Bad Debt Provision Withdrawal Reversed or Recovered in the Current Period
Withdrawal of bad debt provision:
Unit: RMB
Beginning Changes in the current periodCategory balance Withdrawal Reversed or
Ending balance
recovered Verification Others
Bad debt
provision
separately 109689294.54 3545900.64 113235195.18
accrued
Withdrawal of
bad debt
provision by 29263546.48 9909019.80 39172566.28
group
Total 138952841.02 13454920.44 152407761.46
Of which significant amount of recovered or transferred-back bad debt provision for the current period:
Unit: RMB
Basis and rationality of
Name of the entity Amount reversed or determining the originalrecovered Reason for reversal Way of recovery withdrawal proportion of
bad debt provision
N/A
(4) Accounts Receivable Written-off in Current Period
Unit: RMB
Item Written-off amount
Of which the verification of significant accounts receivable:
Unit: RMB
Name of the entity Nature Written-off amount Reason for Verification Whether occurredverification procedures because of related-
152ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
performed party transactions
Notes to verification of accounts receivable:
(5) Top 5 of the Ending Balance of the Accounts Receivable and the Contract Assets Collected according to
Arrears Party
Unit: RMB
Ending balance of
Proportion to total bad debt provision
Ending balance of Ending balance of Ending balance ofName of the entity accounts receivable ending balance of
of accounts
accounts receivable contract assets accounts receivable receivable andand contract assets and contract assets impairmentprovision for
contract assets
Shenzhen Bay
Technology
Development Co. 137865750.97 137865750.97 21.01% 7568725.60
Ltd.Shenzhen Futian
Talent Anju Co. 109392112.37 109392112.37 16.67% 3281763.37
Ltd.Shenzhen Jiyong
Properties &
Resources 93811328.05 93811328.05 14.30% 93811328.05
Development
Company
Hebei Shenbao
Investment
Development Co. 27085777.03 361513.73 27447290.76 4.18% 812573.31
Ltd.Shenzhen Futian
District Government
Property 21378880.28 21378880.28 3.26%
Management Centre
Total 389533848.70 361513.73 389895362.43 59.42% 105474390.33
5. Contract Assets
(1) List of Contract Assets
Unit: RMB
Ending balance Beginning balance
Item
Carrying amount Bad debtprovision Carrying value Carrying amount
Bad debt
provision Carrying value
Municipal
engineering 844485.57 844485.57 1094632.90 1094632.90
retention money
Total 844485.57 844485.57 1094632.90 1094632.90
(2) Significant changes in the amount of carrying value and the reason in the Reporting Period
Unit: RMB
Item Change in amount Reason(s)
(3) Disclosure by Withdrawal Methods for Bad Debts
Unit: RMB
Ending balance Beginning balance
Category
Carrying amount Bad debt provision Carrying Carrying amount Bad debt provision Carrying
153ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Amount Proportion Amount Withdrawal valueproportion Amount Proportion Amount
Withdrawal value
proportion
Of which:
Of which:
Withdrawal of bad debt provision by adopting the general mode of expected credit loss
□Applicable□Not applicable
(4) Bad Debt Provision Withdrawal Reversed or Recovered in the Current Period
Unit: RMB
Item Withdrawal of the Reversal or recovery in Write-off/verified for thecurrent period the Reporting Period current period Reason
Of which significant amount of recovered or transferred-back bad debt provision for the current period:
Unit: RMB
Basis and rationality of
Name of the entity Amount reversed orrecovered Reason for reversal Way of recovery
determining the original
withdrawal proportion of
bad debt provision
Other notes:
(5) Contract Assets Written-off in Current Period
Unit: RMB
Item Written-off amount
Of which the verification of significant contract assets
Unit: RMB
Verification Whether occurred
Name of the entity Nature Written-off amount Reason forverification procedures because of related-performed party transactions
Notes to verification of contract assets:
Other notes:
6. Accounts Receivable Financing
(1) Accounts Receivable Financing Listed by Category
Unit: RMB
Item Ending balance Beginning balance
(2) Disclosure by Withdrawal Methods for Bad Debts
Unit: RMB
Ending balance Beginning balance
Category Carrying amount Bad debt provision Carrying Carrying amount Bad debt provision Carrying
Amount Proportion Amount Withdrawal valueproportion Amount Proportion Amount
Withdrawal value
proportion
Of which:
Of which:
154ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Withdrawal of bad debt provision by adopting the general mode of expected credit loss
Unit: RMB
First stage Second stage Third stage
Expected loss in the
Bad debt provision Expected credit loss in duration (credit Expected loss in the Total
the next 12 months impairment not duration (credit
occurred) impairment occurred)
Balance of 1 January
2023 in the current
period
The basis for the division of each stage and the withdrawal proportion of bad debt provision
Notes to significant changes in the carrying amount of accounts receivable financing with amount changed of loss provision in the
current period:
(3) Bad Debt Provision Withdrawal Reversed or Recovered in the Current Period
Unit: RMB
Category Beginning
Changes in the current period
balance Reversed or Charged- Ending balanceWithdrawal recovered off/Written-off Other changes
Of which significant amount of recovered or transferred-back bad debt provision for the current period:
Unit: RMB
Basis and rationality of
Name of the entity Amount reversed orrecovered Reason for reversal Way of recovery
determining the original
withdrawal proportion of
bad debt provision
Other notes:
(4) Accounts Receivable Financing Pledged by the Company at the Period-end
Unit: RMB
Item Ending pledged amount
(5) Accounts Receivable Financing Which Had Endorsed by the Company or had Discounted and had not
Due on the Balance Sheet Date at the Period-end
Unit: RMB
Item Amount of recognition termination at the Amount of not terminated recognition atperiod-end the period-end
(6) Accounts Receivable Financing with Actual Verification for the Current Period
Unit: RMB
Item Written-off amount
Of which the verification of significant accounts receivable financing
Unit: RMB
Name of the entity Nature Written-off amount Reason for Verification Whether occurredverification procedures because of related-
155ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
performed party transactions
Notes to verification:
(7) The changes of accounts receivable financing in the Current Period and the changes in fair value
(8) Other Notes
7. Other Receivables
Unit: RMB
Item Ending balance Beginning balance
Other receivables 624394372.82 639903523.33
Total 624394372.82 639903523.33
(1) Interest Receivable
1) Category of Interest Receivable
Unit: RMB
Item Ending balance Beginning balance
2) Significant Overdue Interest
Unit: RMB
Whether occurred
Entity Ending balance Overdue time Overdue reason impairment and its
judgment basis
Other notes:
3) Disclosure by Withdrawal Methods for Bad Debts
□Applicable□Not applicable
4) Bad Debt Provision Withdrawal Reversed or Recovered in the Current Period
Unit: RMB
Changes in the current period
Category Beginningbalance Reversed or Charged- Ending balanceWithdrawal recovered off/Written-off Other changes
Of which significant amount of recovered or transferred-back bad debt provision for the current period:
Unit: RMB
Basis and rationality of
Name of the entity Amount reversed or Reason for reversal Way of recovery determining the originalrecovered withdrawal proportion of
bad debt provision
Other notes:
5) Interest Receivable Written-off in Current Period
Unit: RMB
156ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Item Written-off amount
Of which the verification of significant interest receivable:
Unit: RMB
Verification Whether occurred
Name of the entity Nature Written-off amount Reason forverification procedures because of related-performed party transactions
Notes to verification:
Other notes:
(2) Dividend Receivable
1) Category of Dividend Receivable
Unit: RMB
Project (or investee) Ending balance Beginning balance
2) Significant Dividends Receivable Aging over 1 Year
Unit: RMB
Whether occurred
Project (or investee) Ending balance Aging Reason impairment and its
judgment basis
3) Disclosure by Withdrawal Methods for Bad Debts
□Applicable□Not applicable
4) Bad Debt Provision Withdrawal Reversed or Recovered in the Current Period
Unit: RMB
Category Beginning
Changes in the current period
balance Withdrawal Reversed or Charged-
Ending balance
recovered off/Written-off Other changes
Of which significant amount of recovered or transferred-back bad debt provision for the current period:
Unit: RMB
Basis and rationality of
Name of the entity Amount reversed or Reason for reversal Way of recovery determining the originalrecovered withdrawal proportion of
bad debt provision
Other notes:
5) Dividends Receivable Written-off in Current Period
Unit: RMB
Item Written-off amount
Of which the verification of significant dividends receivable:
Unit: RMB
Name of the entity Nature Written-off amount Reason for Verification Whether occurredverification procedures because of related-
157ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
performed party transactions
Notes to verification:
Other notes:
(3) Other Receivables
1) Category of Other Receivables by Account Nature
Unit: RMB
Nature Ending carrying amount Beginning carrying amount
Security deposit 9813980.43 14333480.59
Margin 45417519.59 33052554.40
Reserve fund 63090.95 315131.82
Payment on behalf 2826478.51 7861406.33
Intercourse funds 597882606.95 645712452.33
Others 63021059.95 26868828.99
Total 719024736.38 728143854.46
2) Disclosure by Aging
Unit: RMB
Aging Ending carrying amount Beginning carrying amount
Within one year (including 1 year) 39565801.00 45898989.35
One to two years 11760542.45 582305977.29
Two to three years 571247946.92 32848373.42
More than three years 96450446.01 67090514.40
Three to four years 31254533.77 1460635.19
Four to five years 1068702.68 1563169.64
Over 5 years 64127209.56 64066709.57
Total 719024736.38 728143854.46
3) Disclosure by Withdrawal Methods for Bad Debts
□Applicable □Not applicable
Unit: RMB
Ending balance Beginning balance
Category Carrying amount Bad debt provision Carrying amount Bad debt provision
Carrying value Carrying value
Amount Proportion Amount Withdrawalproportion Amount Proportion Amount
Withdrawal
proportion
Bad debt
provision
separately 627054431.42 87.21% 47169474.26 7.52% 579884957.16 626762447.67 86.08% 47091584.18 7.51% 579670863.49
accrued
Of which:
Withdrawal
of bad debt
provision 91970304.96 12.79% 47460889.30 51.60% 44509415.66 101381406.79 13.92% 41148746.95 40.59% 60232659.84
by group
Of which:
Total 719024736.38 100.00% 94630363.56 13.16% 624394372.82 728143854.46 100.00% 88240331.13 12.12% 639903523.33
Bad debt provision separately accrued: 47169474.26
158ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Unit: RMB
Beginning balance Ending balance
Name
Carrying amount Bad debt Carrying amount Bad debt Withdrawal Reason forprovision provision proportion withdraw
Shenzhen Xinhai
Holding Co. Ltd.and the related
party Shenzhen
Xinhai Rongyao
Real Estate Prudent
Development 587289550.00 17618686.51 587289550.00 17618686.51 3.00% judgment of
Co. Ltd. recovery risk
Shenzhen
Qianhai
Advanced
Information
Service Co. Ltd.Shenzhen
Tianjun
Industrial Co. 10000000.00 10000000.00
Ltd.Shanghai Yutong
Real Estate Co. 5676000.00 5676000.00 5676000.00 5676000.00 100.00% Uncollectible for
Ltd. a long period
Hong Kong Yue
Heng
Development 3271837.78 3271837.78 3271837.78 3271837.78 100.00%
Uncollectible for
a long period
Co. Ltd.Dameisha Uncollectible for
Tourism Centre 2576445.69 2576445.69 2576445.69 2576445.69 100.00% a long period
Elevated train
project 2542332.43 2542332.43 2542332.43 2542332.43 100.00%
Uncollectible for
a long period
Those with
insignificant
single amount for
which bad debt 15406281.77 15406281.77 15698265.52 15484171.85 98.64% Uncollectible for
provision a long period
separately
accrued
Total 626762447.67 47091584.18 627054431.42 47169474.26
Withdrawal of bad debt provision by group: 47460889.30
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Within one year (including 1
year) 23075962.34 691185.85 3.00%
1-2 years (including 2 years) 3314367.18 331442.66 10.00%
2-3 years (including 3 years) 4736819.03 1421055.79 30.00%
3-4 years (including 4 years) 31254533.77 15627266.89 50.00%
4-5 years (including 5 years) 993422.68 794738.15 80.00%
Over 5 years 28595199.96 28595199.96 100.00%
Total 91970304.96 47460889.30
Notes to the determination basis for the group:
Withdrawal of bad debt provision by adopting the general mode of expected credit loss:
159ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Unit: RMB
First stage Second stage Third stage
Expected loss in the
Bad debt provision Expected credit loss in duration (credit Expected loss in the Total
the next 12 months impairment not duration (credit
occurred) impairment occurred)
Balance of 1 January
202358445816.2029794514.9388240331.13
Balance of 1 January
2023 in the current
period
——Transferred to -17297069.24 17297069.24
phase II
Withdrawal of the
current period 6369310.29 77890.08 6447200.37
Amount transferred-
back for the current 57167.94 57167.94
period
Balance of 31
December 2023 47460889.30 17297069.24 29872405.02 94630363.56
The basis for the division of each stage and the withdrawal proportion of bad debt provision
Changes of carrying amount with significant amount changed of loss provision in the current period
□Applicable□Not applicable
4) Bad Debt Provision Withdrawn Reversed or Recovered in the Current Period
Withdrawal of bad debt provision:
Unit: RMB
Beginning Changes in the current periodCategory balance Reversed or Charged- Ending balanceWithdrawal recovered off/Written-off Others
Bad debt
provision
separately 47091584.18 77890.08 47169474.26
accrued
Withdrawal of
bad debt
provision by 41148746.95 6369310.29 57167.94 47460889.30
group
Total 88240331.13 6447200.37 57167.94 94630363.56
Of which the bad debt provision recovered or transferred-back with significant amount during the current period:
Unit: RMB
Basis and rationality of
Name of the entity Amount reversed orrecovered Reason for reversal Way of recovery
determining the original
withdrawal proportion of
bad debt provision
5) Particulars of the Actual Verification of Other Receivables during the Current Period
Unit: RMB
Item Written-off amount
160ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Of which the verification of significant other receivables:
Unit: RMB
Reason for Verification Whether occurredName of the entity Nature Written-off amount verification procedures because of related-performed party transactions
Notes to the verification of other receivables:
6) Top 5 of the Ending Balance of Other Receivables Collected according to the Arrears Party
Unit: RMB
Proportion to total
Name of the entity Nature Ending balance Aging ending balance of Ending balance of
other receivables % bad debt provision
Shenzhen Xinhai
Holding Co. Ltd.and the related party
Shenzhen Xinhai Intercourse funds 576568974.73 Between two year 80.19% 17297069.25
Rongyao Real Estate and five years
Development Co.Ltd.Shenzhen Bangling
Stock Cooperative Intercourse funds 30000000.00 Between three yearand four years 4.17% 15000000.00Company
Shenzhen Qianhai
Advanced
Information Service Intercourse funds 10720575.27
Between two year
and three years 1.49% 321617.26
Co. Ltd.Shenzhen Bay
Technology
Development Co. Intercourse funds 10065313.75 Within 1 year 1.40% 301959.41
Ltd.Total 627354863.75 87.25% 32920645.92
7) Presentation in Other Receivables due to the Centralized Management of Funds
Unit: RMB
Other notes:
N/A
8. Prepayment
(1) Prepayment Listed by Aging Analysis
Unit: RMB
Ending balance Beginning balance
Aging
Amount Proportion Amount Proportion
Within 1 year 11077693.87 88.07% 98477532.46 97.56%
One to two years 388465.12 3.09% 1652279.14 1.64%
Two to three years 304932.40 2.42% 1438.19 0.00%
More than three years 211994.96 6.42% 210556.77 0.80%
Total 11983086.35 100341806.56
Notes of the reasons of the prepayment aging over 1 year with significant amount but failed settled in time:
161ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
(2) Top 5 Prepayment in Ending Balance Collected according to the Prepayment Target
Name of the entity Ending balance Proportion to total ending balance of accountsprepaid (%)
Yangzhou Broadcasting Television Network Co. Ltd. 2775769.50 22.07
Chongqing Yudi Assets Management Co. Ltd. 1897674.45 15.09
China State Construction & Engineering 4th Bureau 5th Corp
Limited 568181.04 4.52
Beijing Jingdong Century Information Technology Co. Ltd. 514727.63 4.09
Hangzhou New Windows Information Technology Co. Ltd. 311946.90 2.48
Total 6068299.52 48.24
Other notes:
9. Inventories
Whether the Company needs to comply with the disclosure requirements for the real estate industry
Yes
(1) Category of Inventory
The Company shall comply with the disclosure requirements for the real estate industry in the Self-regulatory Guidelines No. 3 for
Companies Listed on Shenzhen Stock Exchange - Industry Information Disclosure.Classification by nature:
Unit: RMB
Ending balance Beginning balance
Depreciation Depreciation
reserves of reserves of
inventories or inventories or
Item
Carrying amount impairment impairmentprovision for Carrying value Carrying amount provision for Carrying value
contract contract
performance performance
costs costs
R&D expenses 11174583667.43 218824035.97 10955759631.46 10778950699.23 6648404.13 10772302295.10
Developing
properties 141176477.91 141176477.91 199674693.59 199674693.59
Contract
performance 1965933.85 1965933.85
costs
Raw materials 1533601.80 915223.04 618378.76 1891354.81 1040612.30 850742.51
Inventory goods 2564024.46 2094300.39 469724.07 2536973.19 2094300.39 442672.80
Low-value
consumables 184883.54 184883.54 97885.52 97885.52
Total 11320042655.14 221833559.40 11098209095.74 10985117540.19 9783316.82 10975334223.37
Disclose main items of “R&D expenses” and interest capitalization in the following format:
Unit: RMB
Project name Time for Estimated Estimated Beginning Transferred to Other Increase Ending Accumulated Of which: Capitalcommencement date of total balance developing decreased (R&D balance amount of amount of resources
162ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
completion investment properties for amount for expenses) for interest capitalized
the current the current the current capitalization interests for
period period period the current
period
Lanhu Shidai 15 October 10 8400000000 4686202 535922056. 5222124 357489702.3 11918619
project 2020 September
Bank
2026 .00 152.53 32 208.85 9 2.41 loans
SZPRD-
Fuchang 27 December 15 May 911330000.0 7472875 39992131.0Garden Phase 2018 2023 787279703.02 0.00 OthersII (Fuhui 0 71.94 8
Huayuan)
Humen Sea 30 April 3217590000 2361567 198080476. 2559648 9600985.3
Bay project 22 March 2022
Bank
2024 9600985.30.00 910.93 58 387.51 0 loans
Guangming
Yutang 21 October 2658680000 1792278 202943925. 1995222 3810146.4 Bank
Shangfu 7 March 2022 2024 3810146.41.00 782.42 14 707.56 1 loans
project
Yupinluansha
n (commercial
and residential 2364335 23643350
construction 0.00 Others05.64 5.64
project of No.A117-12 land)
Land of 6648404. 6648404.Hongqi Town Others
Haikou 13 13
Shenhui 3725604 37287764
Garden 31716.38 Others8.16 .54
Fuyuantai 1275433 16102390
project 3348052.49 Others7.65 .14
Yangzhou
Shouxihu 2529110000 8639663 431687658. 1295653
Ecological 6 March 2023 31 August Others
Health Valley 2026 .00 04.45 55 963.00
project
345556841895841
Others 7340160.32 Others
1.38.70
177167100010778952364335014193461711174583370900834.113259732
Total -- -- 787279703.02 --
0.000699.235.646.86667.4304.12
Disclose main items of “Developing properties” in the following format:
Unit: RMB
Of which:
Accumulated amount of
Project name Time of Beginning Increase for the Decrease for the amount of capitalizedcompletion balance current period current period Ending balance interest interests for
capitalization the current
period
SZPRD- 1
Langqiao December 3447316.75 3447316.75 83077702.96
International 2012
SZPRD-Hupan 1 June
Yujing Phase I 2015 56815090.28 26673381.36 30141708.92
SZPRD-
Banshan Yujing 12 January2022 3607397.06 70407.65 3536989.41 10446911.43Phase II
SZPRD-
Songhu 1 July 2017 24200327.47 1153387.44 23046940.03 27205315.95
Langyuan
SZPRD-Hupan 1
Yujing Phase II November 30517813.23 238482.45 30279330.78 30539392.652017
SZPRD-Golden 1
Collar’s Resort December 72260564.44 35314083.61 36946480.832019
SZPRD- 15 May
Fuchang 2023 0.00 787279703.02 782328176.19 4951526.83
163ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Garden Phase
II (Fuhui
Huayuan)
International 1
Trade Center December 4839083.10 4839083.10 26385636.29
Plaza 1995
Huangyuyuan 1 June
AArea 2001 790140.58 790140.58
Podium
Building of 1
Fuchang November 645532.65 645532.65
Building 1999
Other items 2551428.03 2551428.03
Total -- 199674693.59 787279703.02 845777918.70 141176477.91 177654959.28
Classification of “Developing properties with the collection of payments in installments” “Renting developing properties” and
“Temporary Housing”:
Unit: RMB
Project name Beginning balance Increase for the current Decrease for the currentperiod period Ending balance
(2) Falling Price Reserves of Inventory and Impairment Reserves for Contract Performance Costs
Disclosure of falling provision withdrawal of inventory in the following format:
Classification by nature:
Unit: RMB
Increased amount of the current Decreased amount for the
Beginning period current periodItem balance Transferred- Ending balance NotesWithdrawal Others back or Others
charged-off
R&D expenses 6648404.13 212175631.84 218824035.97
Raw materials 1040612.30 37.12 125426.38 915223.04
Inventory
goods 2094300.39 2094300.39
Total 9783316.82 212175668.96 125426.38 221833559.40
Classification by nature:
Unit: RMB
Increased amount of the current Decreased amount for the
period current period
Project name Beginningbalance Transferred- Ending balance NotesWithdrawal Others back or Others
charged-off
Land of
Hongqi Town 6648404.13 6648404.13
Haikou
Humen Sea
Bay project 187141155.12 187141155.12
Yangzhou
Shouxihu
Ecological 25034476.72 25034476.72
Health Valley
project
Total 6648404.13 212175631.84 218824035.97
164ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
(3) Notes to the Ending Balance of Inventories Including Capitalized Borrowing Expense
Project name Period-begin Current period Carry-over incurrent period Period-end
SZPRD-Golden Collar’s Resort 341681.06 77414.17 264266.89
Lanhu Shidai project 238303509.98 119186192.41 357489702.39
SZPRD-Langqiao International 2971986.54 2971986.54
SZPRD-Hupan Yujing Phase I 1249515.42 1249515.42
Humen Sea Bay project 9600985.30 9600985.30
Guangming Yutang Shangfu
project 3810146.41 3810146.41
Yangzhou Shouxihu Ecological
Health Valley project 460955.00 460955.00
Total 242866693.00 133058279.12 77414.17 375847557.95
(4) Inventory Restrictions
Disclosing restricted inventory by project:
Unit: RMB
Project name Beginning balance Ending balance Reason for restriction
10. Held-for-sale Assets
Unit: RMB
Item Ending carrying Impairment Ending carrying Fair value Estimated Estimatedamount provision amount disposal expense disposal time
Other notes:
11. Current Portion of Non-current Assets
Unit: RMB
Item Ending balance Beginning balance
(1) Investments in Debt Obligations Due within One Year
□Applicable□Not applicable
(2) Other Investments in Debt Obligations Due within One Year
□Applicable□Not applicable
12. Other Current Assets
Unit: RMB
Item Ending balance Beginning balance
Prepaid VAT 22096062.08 16846758.27
Deducted input tax 97304885.00 28950002.85
Prepaid income tax 4608593.92 1436395.15
Prepaid land VAT 862126.84 16438505.72
165ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Prepaid urban construction tax 1692524.35 1156118.20
Prepaid education surcharge 1208945.98 825798.74
Immediate rebate of receivable software
sales VAT 1687.34 1687.34
Total 127774825.51 65655266.27
Other notes:
13. Investments in Debt Obligations
(1) List of Investments in Debt Obligations
Unit: RMB
Ending balance Beginning balance
Item
Carrying amount Impairmentprovision Carrying value Carrying amount
Impairment
provision Carrying value
Changes in the impairment provision for investments in debt obligations during the current period
Unit: RMB
Item Beginning balance Increase for the current Decrease for the currentperiod period Ending balance
(2) Significant Investments in Debt Obligations at the Period-end
Unit: RMB
Ending balance Beginning balance
Item
Par value Coupon
Actual
interest Maturity Overdue Coupon
Actual Maturity Overdue
rate rate date principal
Par value rate interestrate date principal
(3) Status of accrued depreciation reserves
Unit: RMB
First stage Second stage Third stage
Expected loss in the
Bad debt provision Expected credit loss in duration (credit Expected loss in the Total
the next 12 months impairment not duration (credit
occurred) impairment occurred)
Balance of 1 January
2023 in the current
period
The basis for the division of each stage and the withdrawal proportion of bad debt provision
(4) Status of Investments in Debt Obligations Written-off in Current Period
Unit: RMB
Item Written-off amount
Of which the verification of significant investments in debt obligations
Notes to verification of investments in debt obligations:
Changes of carrying amount with significant amount changed of loss provision in the current period
166ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
□Applicable□Not applicable
Other notes:
14. Other Investments in Debt Obligations
(1) List of Other Investments in Debt Obligations
Unit: RMB
Accumulated
Change in impairment
Item Beginning Accrued Interest
fair value
in the Ending
Accumulated provision
balance interest adjustment balance Cost changes in recognized in Notesreporting fair value other
period comprehensive
income
Changes in the impairment provision for other investments in debt obligations during the current period
Unit: RMB
Item Beginning balance Increase for the current Decrease for the currentperiod period Ending balance
(2) Significant Other Investments in Debt Obligations at the Period-end
Unit: RMB
Ending balance Beginning balance
Item
Par value Coupon
Actual
interest Maturity Overdue
Actual
rate date principal Par value
Coupon interest Maturity Overdue
rate rate rate date principal
(3) Status of accrued depreciation reserves
Unit: RMB
First stage Second stage Third stage
Expected loss in the
Bad debt provision Expected credit loss in duration (credit Expected loss in the Total
the next 12 months impairment not duration (credit
occurred) impairment occurred)
Balance of 1 January
2023 in the current
period
The basis for the division of each stage and the withdrawal proportion of bad debt provision
(4) Status of Other Investments in Debt Obligations Written-off in Current Period
Unit: RMB
Item Written-off amount
Of which the verification of significant other investments in debt obligations
Notes to verification of other investments in debt obligations:
Changes of carrying amount with significant amount changed of loss provision in the current period
□Applicable□Not applicable
167ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Other notes:
15. Other Equity Instrument Investment
Unit: RMB
Gains Losses Accumulative Accumulative
Reason for
recorded in recorded in gains recorded losses Dividend
assigning to
Project Ending Beginning other other in other recorded in income
measure in fair
value of which
name balance balance comprehensive comprehensive comprehensive other recognized
income in the income in the income in the comprehensive in current
changes
current period current period current period income in the year
included other
current period comprehensiveincome
Gintian Not for
Industry
(Group) 636926.20 887838.64 261743.15 2835868.48
business
transaction
Co. Ltd. purposes
Total 636926.20 887838.64 261743.15 2835868.48
There is derecognition in the current period
Unit: RMB
Project name Accumulative gains transferred Accumulative losses transferredin retained earnings in retained earnings Reason for derecognition
Non-trading equity instrument investment in the Current Period disclosed by items
Unit: RMB
Reason for
Amount of other assigning tomeasure in fair Reason for other
Project name Dividend income Accumulative Accumulative
comprehensive comprehensive
recognized gains losses income
value of which income
transferred to changes included transferred to
retained earnings othercomprehensive retained earnings
income
Gintian Industry Not for business
(Group) Co. Ltd. 2953430.11 transactionpurposes
Other notes:
16. Long-term Receivables
(1) List of Long-term Receivables
Unit: RMB
Ending balance Beginning balance
Item Interval ofCarrying Bad debt Carrying value Carrying Bad debtamount provision amount provision Carrying value
discount rate
Financing
lease accounts 22651454.07 22651454.07
Of which:
unrealized
financing 13169492.65 13169492.65
income
Total 22651454.07 22651454.07
(2) Disclosure by Withdrawal Methods for Bad Debts
Unit: RMB
168ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Ending balance Beginning balance
Category Carrying amount Bad debt provision Carrying Carrying amount Bad debt provision Carrying
Amount Proportion Amount Withdrawal valueproportion Amount Proportion Amount
Withdrawal value
proportion
Of which:
Of which:
Withdrawal of bad debt provision by adopting the general mode of expected credit loss
Unit: RMB
First stage Second stage Third stage
Expected loss in the
Bad debt provision Expected credit loss in duration (credit Expected loss in the Total
the next 12 months impairment not duration (credit
occurred) impairment occurred)
Balance of 1 January
2023 in the current
period
The basis for the division of each stage and the withdrawal proportion of bad debt provision
(3) Bad Debt Provision Withdrawal Reversed or Recovered in the Current Period
Unit: RMB
Beginning Changes in the current periodCategory balance Withdrawal Reversed or Charged-
Ending balance
recovered off/Written-off Others
Of which the bad debt provision recovered or transferred-back with significant amount during the current period:
Unit: RMB
Basis and rationality of
Name of the entity Amount reversed orrecovered Reason for reversal Way of recovery
determining the original
withdrawal proportion of
bad debt provision
Other notes:
(4) Status of Long-term Receivables Written-off in Current Period
Unit: RMB
Item Written-off amount
Of which the verification of significant long-term receivables:
Unit: RMB
Reason for Verification Whether occurredName of the entity Nature Written-off amount verification procedures because of related-performed party transactions
Notes to the verification of long-term receivables:
17. Long-term Equity Investment
Unit: RMB
Beginning Beginning Increase/decrease for the current period Ending Ending
Investee balance balance of Gains and Adjustment of Changes Cash bonus Withdrawal balance balance of(carrying depreciation Additional Reduced losses other of other or profits of Others (Carrying depreciation
value) reserve investment investment recognized comprehensive equity announced impairment value) reserve
169ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
under the income to issue provision
equity
method
I. Joint ventures
Shenzhen Real
Estate Jifa 44730585.2 3335233.21 48065818Warehousing Co. 9 .50
Ltd.Tian’an
International
Building Property 7037952.31 12985.03 7050937.Management 34
Company of
Shenzhen
Subtotal 51768537.60 3348218.24
55116755.84
II. Associated enterprises
Shenzhen Wufang
Ceramics 18983614.1 18983614 18983614.1
Industrial Co. 4 .14 4
Ltd.Shenzhen Kangfu
Health Products 165000.00 165000.00 165000.00
Co. Ltd.Shenzhen
Xinghao Imitation
Porcelain Co. 756670.68 756670.68 756670.68
Ltd.Shenzhen Social
Welfare Company
Fuda Electronics 326693.24 326693.24 326693.24
Factory
Shenzhen Fulong
Industry
Development Co. 1684350.00
1684350.
001684350.00
Ltd.Haonianhua Hotel 2733570.05 2733570.05 2733570.05
Shenzhen
Education Fund
Longhua 500000.00 500000.00 500000.00
Investment
Shenzhen Kangle
Sports Club 540060.00 540060.00 540060.00
Huangfa Branch
Dankeng Village
Plants of Fumin in 1168973.20 1168973.Guanlan Town 20 1168973.20
Shenzhen City
Shenzhen Bull
Entertainment 500000.00 500000.00 500000.00
Co. Ltd.Shenzhen Lianhua
Caitian Property
Management Co. 1475465.91
1475465.
911475465.91
Ltd.Shenzhen
Yangyuan
Industrial Co. 1030000.00
1030000.
001030000.00
Ltd.Jiakaifeng Co.Ltd. Bao’an 600000.00 600000.00 600000.00
Company
Guiyuan Garage 350000.00 350000.00 350000.00
Shenzhen
Wuweiben Roof
Greening Co. 500000.00 500000.00 500000.00
Ltd.ShenzhenYuanpin
g Plastic Steel 240000.00 240000.00 240000.00
Doors Co. Ltd.ShenzhenYoufang
Printing Co. Ltd. 100000.00 100000.00 100000.00
Shenzhen
Lusheng
Industrial 100000.00 100000.00 100000.00
Development Co.Ltd.CSCEC
Intelligent
Parking 28012899.7 991215.00 63120.00 28940994
Technology Co. 1 .71
Ltd.Subtotal 59767296.93 991215.00 63120.00
6069539131754397.2.932
Total 111535834.53 4339433.24 63120.00
1158121431754397.2
7.772
The recoverable amount is determined based on the net amount of the fair value minus disposal costs
170ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
□Applicable□Not applicable
The recoverable amount is determined by the present value of the forecasted future cash flow.□Applicable□Not applicable
The reason for the discrepancy between the foregoing information and the information used in the impairment tests in prior years or
external information
The reason for the discrepancy between the information used in the Company's impairment tests in prior years and the actual
situation of those years
Other notes:
18. Other Non-current Financial Assets
Unit: RMB
Item Ending balance Beginning balance
Other notes:
19. Investment Property
(1) Investment Property Adopting the Cost Measurement Mode
□Applicable □Not applicable
Unit: RMB
Item Houses and buildings Land use right Construction in progress Total
I. Original carrying value
1. Beginning balance 861702509.37 14495902.20 37192716.83 913391128.40
2. Increased amount for
the current period 20538975.46 20538975.46
(1) Outsourcing
(2) Transfer from
inventory/fixed
assets/construction in 20538975.46 20538975.46
progress
(3) Business
combination increase
3. Decreased amount for
the current period -178092.04 -178092.04
(1) Disposal
(2) Other transfer
(3) Exchange adjustment -178092.04 -178092.04
4. Ending balance 882419576.87 14495902.20 37192716.83 934108195.90
II. Accumulative
depreciation and
accumulative
amortization
1. Beginning balance 472271039.79 13360585.89 21996763.54 507628389.22
171ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
2. Increased amount for
the current period 30494065.85 952969.32 8052783.60 39499818.77
(1) Withdrawal or
amortization 27649799.76 952969.32 8052783.60 36655552.68
(2) Others 2844266.09 2844266.09
3. Decreased amount for
the current period -169187.44 -169187.44
(1) Disposal
(2) Other transfer
(3) Exchange adjustment -169187.44 -169187.44
4. Ending balance 502934293.08 14313555.21 30049547.14 547297395.43
III. Depreciation
reserves
1. Beginning balance
2. Increased amount for
the current period
(1) Withdrawal
3. Decreased amount for
the current period
(1) Disposal
(2) Other transfer
4. Ending balance
IV. Carrying value
1. Ending carrying value 379485283.79 182346.99 7143169.69 386810800.47
2. Beginning carrying
value 389431469.58 1135316.31 15195953.29 405762739.18
The recoverable amount is determined based on the net amount of the fair value minus disposal costs
□Applicable□Not applicable
The recoverable amount is determined by the present value of the forecasted future cash flow.□Applicable□Not applicable
The reason for the discrepancy between the foregoing information and the information used in the impairment tests in prior years or
external information
The reason for the discrepancy between the information used in the Company's impairment tests in prior years and the actual
situation of those years
Other notes:
(2) Investment Property Adopting the Fair Value Measurement Mode
□Applicable□Not applicable
(3) Projects Converted to Investment Properties and Measured at Fair Value
Unit: RMB
Item Accounting item Amount Reason for Approval Impact on gain Impact on other
172ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
before conversion procedures and loss comprehensive
conversion income
(4) Investment Property Failed to Accomplish Certification of Property
Unit: RMB
Item Carrying value Reason
The house is used for property management once occupied by the
507 Unit Block No. 6 Maguling 22679.21 third party a property management company now has been
recovered but hasn’t handled the warrant yet.Meilin land [Note 1] Obtained after the success in the last instance in 2017 relevantcertifications of property are in the procedure
Total 22679.21
Other notes:
Note: As at 31 December 2023 the original carrying value of Meilin land was RMB3885469.40 the
accumulated accrued depreciation was RMB3885469.40 and the carrying value was RMB0.
20. Fixed Assets
Unit: RMB
Item Ending balance Beginning balance
Fixed assets 66436408.90 82745172.12
Liquidation of fixed assets
Total 66436408.90 82745172.12
(1) List of Fixed Assets
Unit: RMB
Item Total
I. Original
carrying value:
1. Beginning
balance 129859285.29 6457738.92 19461561.97 37715645.88 57075135.08 250569367.14
2. Increased
amount for the 6600.00 631228.99 22350.00 4534125.03 5194304.02
current period
(1) Purchase 6600.00 631228.99 22350.00 4534125.03 5194304.02
(2) Transfer from
construction in
progress
(3) Business
combination
increase
3. Decreased
amount for the 5432051.73 155270.00 741446.82 3143412.94 9472181.49
current period
(1) Disposal or
scrap 155270.00 741446.82 3143412.94 4040129.76
(2) Exchange
adjustment -82418.03 -82418.03
Others 5514469.76 5514469.76
4. Ending
balance 124427233.56 6309068.92 19351344.14 37737995.88 58465847.17 246291489.67
II. Accumulative
depreciation
1. Beginning
balance 95882680.45 2648956.94 13790571.17 18649255.82 36777013.48 167748477.86
173ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
2. Increased
amount for the 2091157.50 479295.76 1641080.73 7481877.56 6932155.58 18625567.13
current period
(1) Withdrawal 2091157.50 479295.76 1641080.73 7481877.56 6932155.58 18625567.13
3. Decreased
amount for the 2768468.99 154765.10 680236.38 2991210.91 6594681.38
current period
(1) Disposal or
scrap 154765.10 680236.38 2991210.91 3826212.39
(2) Exchange
adjustment -75797.10 -75797.10
Others 2844266.09 2844266.09
4. Ending
balance 95205368.96 2973487.60 14751415.52 26131133.38 40717958.15 179779363.61
III. Depreciation
reserves
1. Beginning
balance
2. Increased
amount for the
current period
(1) Withdrawal
3. Decreased
amount for the
current period
(1) Disposal or
scrap
4. Ending
balance
IV. Carrying
value
1. Ending
carrying value 29221864.60 3335581.32 4599928.62 11606862.50 17672171.86 66436408.90
2. Beginning
carrying value 33976604.84 3808781.98 5670990.80 19066390.06 20222404.44 82745172.12
(2) List of Temporarily Idle Fixed Assets
Unit: RMB
Item Original carrying Accumulated Impairmentvalue depreciation provision Carrying value Notes
(3) Fixed Assets Leased out by Operation Lease
Unit: RMB
Item Ending carrying amount
(4) Fixed Assets Failed to Accomplish Certification of Property
Unit: RMB
Item Carrying value Reason
Room 406 2 units Hulunbuir Guangxia
Digital Building 2191229.86
Property rights disputes before now have won a lawsuit with
certification of the property being processed.The office building will be removed due to the project adjustment
Room 401 402 Sanxiang Business and a high-rise office building will be established nearby the
Building Office Building 575652.74 present address. The existing property shall be replaced after thecompletion of the new office building. Thus the certification of
the property is failed to transact.Total 2766882.60
174ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Other notes:
(5) Impairment Test of Fixed Assets
□Applicable□Not applicable
(6) Proceeds from Disposal of Fixed Assets
Unit: RMB
Item Ending balance Beginning balance
Other notes:
21. Construction in Progress
Unit: RMB
Item Ending balance Beginning balance
(1) List of Construction in Progress
Unit: RMB
Ending balance Beginning balance
Item
Carrying amount Impairment Carrying value Carrying amount Impairmentprovision provision Carrying value
(2) Changes in Significant Construction in Progress during the Current Period
Unit: RMB
Other Proportion Of which:Increased decreased of Accumulated amount of Capitalization
Project Beginning amount Transferred amount Ending accumulated Job amount of capitalized rate of Capital
name Budget balance of the in fixedcurrent assets for the balance
investment schedule interest interests interests forin for the the current resources
period current constructions capitalizationperiod current periodto budget period
(3) List of the Withdrawal of the Depreciation Reserves for Construction in Progress
Unit: RMB
Item Beginning balance Increase for the Decrease for thecurrent period current period Ending balance
Reason for
withdrawal
Other notes:
(4) Impairment Test of Construction in Progress
□Applicable□Not applicable
(5) Engineering Materials
Unit: RMB
Ending balance Beginning balance
Item
Carrying amount Impairment Impairmentprovision Carrying value Carrying amount provision Carrying value
Other notes:
175ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
22. Right-of-use Assets
(1) List of Right-of-use Assets
Unit: RMB
Item Total
I. Original carrying value
1. Beginning balance 96978273.81 96978273.81
2. Increased amount for the current period 34372695.47 34372695.47
(1) New Leases 34372695.47 34372695.47
3. Decreased amount for the current period 75290063.42 75290063.42
(1) Terminated Leases 75290063.42 75290063.42
4. Ending balance 56060905.86 56060905.86
II. Accumulative depreciation
1. Beginning balance 26809858.16 26809858.16
2. Increased amount for the current period 18139758.01 18139758.01
(1) Withdrawal 18139758.01 18139758.01
3. Decreased amount for the current period 12405506.53 12405506.53
(1) Disposal
(2) Terminated Leases 12405506.53 12405506.53
4. Ending balance 32544109.64 32544109.64
III. Depreciation reserves
1. Beginning balance
2. Increased amount for the current period
(1) Withdrawal
3. Decreased amount for the current period
(1) Disposal
4. Ending balance
IV. Carrying value
1. Ending carrying value 23516796.22 23516796.22
2. Beginning carrying value 70168415.65 70168415.65
(2) Impairment Test of Right-of-use Assets
□Applicable □Not applicable
The recoverable amount is determined based on the net amount of the fair value minus disposal costs
□Applicable□Not applicable
The recoverable amount is determined by the present value of the forecasted future cash flow.□Applicable□Not applicable
The reason for the discrepancy between the foregoing information and the information used in the impairment tests in prior years or
external information
The reason for the discrepancy between the information used in the Company's impairment tests in prior years and the actual
176ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
situation of those years
Other notes:
23. Intangible Assets
(1) List of Intangible Assets
Unit: RMB
Item Land use right Patent right Non-patenttechnologies Software use rights Total
I. Original carrying
value
1. Beginning
balance 3060312.13 3060312.13
2. Increased amount
for the current
period
(1) Purchase
(2) Internal R&D
(3) Business
combination
increase
3. Decreased
amount for the
current period
(1) Disposal
4. Ending balance 3060312.13 3060312.13
II. Accumulated
amortization
1. Beginning
balance 1790929.22 1790929.22
2. Increased amount
for the current 379581.77 379581.77
period
(1) Withdrawal 379581.77 379581.77
3. Decreased
amount for the
current period
(1) Disposal
4. Ending balance 2170510.99 2170510.99
III. Depreciation
reserves
1. Beginning
balance
2. Increased amount
for the current
period
(1) Withdrawal
3. Decreased
amount for the
current period
(1) Disposal
177ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
4. Ending balance
IV. Carrying value
1. Ending carrying
value 889801.14 889801.14
2. Beginning
carrying value 1269382.91 1269382.91
The proportion of intangible assets formed from the internal R&D of the Company at the Period-end to the ending balance of
intangible assets
(2) Land Use Right Failed to Accomplish Certification of Property
Unit: RMB
Item Carrying value Reason
Other notes:
(3) Impairment Test of Intangible Assets
□Applicable□Not applicable
24. Goodwill
(1) Original Carrying Value of Goodwill
Unit: RMB
Name of the Increase for the current period Decrease for the current period
invested units or Beginning Formed by
events generating balance Ending balancebusiness Disposal
goodwill combination
Shenzhen
Facility
Management
Community 9446847.38 9446847.38
Technology Co.Ltd.Total 9446847.38 9446847.38
(2) Depreciation Reserves of Goodwill
Unit: RMB
Name of the Increase for the current period Decrease for the current period
invested units or Beginning
events generating balance Ending balanceWithdrawal Disposal
goodwill
Total
(3) Information on the Assets Groups or Combination of Assets Groups which Goodwill Belongs to
Composition and basis of the
Name asset group or combination of Operating segment to which it Whether it is consistent with
asset groups to which it belongs belongs and basis that of the prior years
Groups or combinations of
groups of assets that are
capable of generating cash
Shenzhen Facility Management
Community Technology Co. flows independently taking into Property management Yes
Ltd. account the ability to benefit supporting services
from the synergies of the
business combination and the
way in which management
178ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
manages or monitors the
production and operating
activities.Changes in the assets group or combination of assets groups
Name Composition before the change Composition after the change Objective facts leading to thechange and their basis
Other notes:
(4) Specific Method of Determining the Recoverable Amount
The recoverable amount is determined based on the net amount of the fair value minus disposal costs
□Applicable□Not applicable
The recoverable amount is determined by the present value of the forecasted future cash flow.□Applicable □Not applicable
Unit: RMB
Basis of
Key Key determining
Item Carrying value Recoverable Impairment
Number of parameters of parameters of the key
amount amount years of theforecast period the forecast the stable parameters ofperiod period the stable
period
Shenzhen
Facility Revenue
Management growth rate of Determined
Community 61791091.57 62756889.73 5 1%-8% No growth based on
Technology discount rate prudence
Co. Ltd. of 12.53%
Total 61791091.57 62756889.73
The reason for the discrepancy between the foregoing information and the information used in the impairment tests in prior years or
external information
The reason for the discrepancy between the information used in the Company's impairment tests in prior years and the actual
situation of those years
(5) Completion of Commitments to Results and Corresponding Goodwill Impairment
When goodwill is formed there is a commitment to the results and the reporting period or the period preceding the reporting period
is within the commitment period
□Applicable □Not applicable
Unit: RMB
Completion of the commitment to results Amount of goodwillimpairment
Item Current period Previous period Current Previous
Committed Actual Completion Committed Actual Completion period period
results results rate results results rate
Other notes:
In May 2021 Shenzhen Wuhe Industry Investment Development Co. Ltd. (hereinafter referred to as “Wuhe Company”) a
subsidiary of the Company acquired 35% of the equity of Shenzhen Facility Management Community Technology Co. Ltd.(hereinafter referred to as “FMC”) through acquisition of equity and directional capital increase. Pursuant to the equity acquisition
179ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
cooperation framework agreement entered into between Wuhe Company and the original shareholders FMC and its original
shareholders undertook that the FMC's operating revenue growth ratio or net profit for the years from 2021 to 2023 would reach
the target value agreed upon in the agreement and that Wuhe Company would conduct an assessment of its operating performance
for a period of three years. As at the Reporting Date the performance assessment has not yet been completed and therefore it is
not possible to assess its fulfillment for the time being.Based on the results of the goodwill impairment test the recoverable amount is higher than its carrying amount and no provision
for goodwill impairment is required.
25. Long-term Prepaid Expense
Unit: RMB
Item Beginning balance Increased amount of
Amortization
the current period amount of the
Other decreased
amount Ending balancecurrent period
Decoration fee 21980602.46 7834029.87 7726470.46 577763.99 21510397.88
Total 21980602.46 7834029.87 7726470.46 577763.99 21510397.88
Other notes:
26. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Deferred Income Tax Assets Had Not Been Off-set
Unit: RMB
Ending balance Beginning balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
differences assets differences assets
Provision for impairment
of assets 95315243.86 21090356.76 72321489.09 15066804.41
Internal unrealized profit 437266319.66 109316579.92 439263809.16 109815952.29
Deductible losses 607016948.61 151737271.44 1159867308.26 288683459.58
Accrued land VAT 3911198870.69 977799717.67 3838271429.24 959567857.31
Estimated profit
calculated at pre-sale
revenue of property 32620985.74 8155246.44 35766814.24 8941703.56
enterprises
Other accrued expenses 7694020.20 1923505.05 4512525.55 974808.89
Lease Liabilities 26502156.29 6417709.55 100176641.92 24500761.16
Total 5117614545.05 1276440386.83 5650180017.46 1407551347.20
(2) Deferred Income Tax Liabilities Had Not Been Off-set
Unit: RMB
Ending balance Beginning balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
difference liabilities difference liabilities
The carrying value of
fixed assets was larger 704413.18 176103.29 967914.16 241978.54
than the tax basis
Right-of-use Assets 23516796.22 5686176.41 70168415.65 22737325.56
180ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Total 24221209.40 5862279.70 71136329.81 22979304.10
(3) Deferred Income Tax Assets or Liabilities Had Been Off-set Listed in Net Amount
Unit: RMB
Ending off-set amount of Ending balance of Beginning off-set Beginning balance of
Item deferred income tax deferred income tax amount of deferred deferred income tax
assets and liabilities assets and liabilities income tax assets andliabilities assets and liabilities
Deferred income tax
assets 1276440386.83 1407551347.20
Deferred income tax
liabilities 5862279.70 22979304.10
(4) List of Unrecognized Deferred Income Tax Assets
Unit: RMB
Item Ending balance Beginning balance
Deductible temporary differences 261260204.35 52448071.36
Deductible losses 254378951.24 508734563.66
Total 515639155.59 561182635.02
(5) Deductible Losses of Unrecognized Deferred Income Tax Assets will Due in the Following Years
Unit: RMB
Year Ending amount Beginning amount Notes
2023265603820.64
2024124895242.05124895242.05
202522711013.8522711013.85
202614238807.0014238807.00
202781285680.1281285680.12
202811248208.22
Total 254378951.24 508734563.66
Other notes:
27. Other Non-current Assets
Unit: RMB
Ending balance Beginning balance
Item
Carrying amount Impairment Carrying value Carrying amount Impairmentprovision provision Carrying value
Prepayment for
purchase of fixed
assets
investment 870062.16 870062.16 115779.31 115779.31
properties and
intangible assets
Others [note 1] 2635093.77 2635093.77 2635093.77 2635093.77
Total 3505155.93 3505155.93 2750873.08 2750873.08
Other notes:
181ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Note 1: The amount is mainly the registered asset of investment property as the assets relate to the subsequent
pending transfer of relocated properties for the shanty town renovation of Chuanbujie and the term exceeds one
year.
28. Assets with Restricted Ownership or Right of Use
Unit: RMB
Period-end Period-beginning
Item Carrying Carrying Type of Status of Carrying
amount value restriction restriction amount Carrying value
Type of Status of
restriction restriction
Margin
security
deposit
Monetary Note 1 - interest on
capital 15659341.60 15659341.60 Frozen Note 10 7835036.35 7835036.35 Frozen timedeposit and
judicially
frozen
funds
Land use
right of
Fumin New
Village 542507314.43 542507314.43 Mortgaged
Futian
District
Total 15659341.60 15659341.60 550342350.78 550342350.78
Other notes:
[Note 1]: In terms of monetary assets with restricted right to use at the period-end there was RMB2200000.00 as the banker's letter
of margin for Shenzhen Shenfubao Property Development Co. Ltd. a subsidiary of the Company.[Note 2]: In terms of monetary assets with restricted right to use at the period-end there was RMB3342374.71 in the subsidiary
company Shenzhen Facility Management Community Technology Co. Ltd. blocked by the court due to pre-litigation preservation
for contract disputes.[Note 3]: In terms of monetary assets with restricted right to use at the period-end there was a loan deposit of RMB1133604.61
provided as mortgage loan guarantees for commercial housing purchasers and paid by the Company as a real estate developer
according to real estate business practices.[Note 4]: In terms of monetary assets with restricted right to use at the period-end there was RMB8644166.67 of interest on
unexpired term deposits accrued at the period-end.[Note 5]: In terms of monetary assets with restricted right to use at the period-end there was RMB90000.00 of blocked fund in a
dispute over a house purchase and sales contract for Shenzhen Property Group Xuzhou Dapeng Real Estate Development Co. Ltd. a
subsidiary of the Company.[Note 6]: In terms of monetary assets with restricted right to use at the period-end there was RMB129021.18 in the account of the
subsidiary company Shenzhen Property Engineering and Construction Supervision Co. Ltd. The account was in a receiving-only
status because the legal person change formalities had not been completed by the period-end.[Note 7]: In terms of monetary assets with restricted right to use at the period-end there was RMB99103.58 in the account of the
subsidiary company Shenzhen Yufa Industrial Co. Ltd. Its bank account was frozen because its retained shareholder information is
inconsistent with the shareholder information retained during business registration in the State Administration for Market Regulation.[Note 8]: In terms of monetary assets with restricted right to use at the period-end there was a deposit for POS of RMB1500.00 in
the Shandong Shenguomao Real Estate Management Co. Ltd.[Note 9]: In terms of monetary assets with restricted right to use at the period-end there was a deposit for POS of RMB1000.00 in
the Shenzhen Shenfubao Property Development Co. Ltd a subsidiary of the Company
[Note 10]: In terms of monetary assets with restricted right to use at the period-end there was RMB18570.85 of blocked fund in a
labour disputes arbitration case for Shenzhen Free Trade Zone Security Service Co. Ltd. a subsidiary of the Company.
182ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
29. Short-term Borrowings
(1) Category of Short-term Borrowings
Unit: RMB
Item Ending balance Beginning balance
Credit loan 230915000.00
Total 230915000.00
Notes of the category for short-term loans:
The credit borrowings (1) at the period-end were used for the daily operation of Shenzhen International Trade Center Property
Management Co. Ltd. a subsidiary of the Company with the duration from 28 September 2023 to 26 March 2024.The credit borrowings (2) at the period-end were used for the daily operation of Shenzhen ITC Technology Park Service Co. Ltd. a
subsidiary of the Company with the duration from 1 December 2023 to 29 November 2024.The credit borrowings (3) at the period-end were used for the daily operation of Shenzhen International Trade Center Property
Management Co. Ltd. a subsidiary of the Company with the duration from 4 December 2023 to 4 June 2024.
(2) List of the Short-term Borrowings Overdue but not Returned
The amount of the overdue unpaid short-term borrowings at the period-end was RMBXXX of which the significant overdue unpaid
short-term borrowings are as follows:
Unit: RMB
Entity Ending balance Interest rate Overdue time Overdue charge rate
Other notes:
30. Trading Financial Liabilities
Unit: RMB
Item Ending balance Beginning balance
Of which:
Of which:
Other notes:
31. Derivative Financial Liabilities
Unit: RMB
Item Ending balance Beginning balance
Other notes:
32. Notes Payable
Unit: RMB
Category Ending balance Beginning balance
The total amount of notes payable that are due but unpaid amounted to RMBXXX at the end of the current period. And the reasons
why they are due but not paid are XXX
183ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
33. Accounts Payable
(1) List of Accounts Payable
Unit: RMB
Item Ending balance Beginning balance
Engineering construction expense payable 540851975.20 484123042.01
Estimated payables 40980345.76 32863907.25
Others 81036738.63 91296439.26
Total 662869059.59 608283388.52
(2) Significant Accounts Payable Aging over One Year or Overdue
Unit: RMB
Item Ending balance Unpaid/Un-carry-over reason
Shenzhen Municipal Bureau of Planning
and Land 25000000.00 Historical problems
China Construction Fourth Engineering
Division Corp. Ltd. 12017672.93 Unsettled
Shenzhen Qianhai Advanced Information
Service Co. Ltd. 8126060.00 Unsettled
Total 45143732.93
Other notes:
34. Other Payables
Unit: RMB
Item Ending balance Beginning balance
Dividends payable 12202676.04 12202676.04
Other payables 1205100618.21 1502883156.41
Total 1217303294.25 1515085832.45
(1) Interest Payable
Unit: RMB
Item Ending balance Beginning balance
List of the significant overdue unpaid interest:
Unit: RMB
Entity Overdue amount Overdue reason
Other notes:
(2) Dividends Payable
Unit: RMB
Item Ending balance Beginning balance
Ordinary stock dividends 12202676.04 12202676.04
Total 12202676.04 12202676.04
184ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Other notes: including significant dividends payable unpaid for over one year the unpaid reason shall be disclosed:
Item Amount unpaid Reason
Shenzhen Greening Department 10869036.68 Company restructured without clearingpayment object
Labor Union of Shenzhen Greening Department 1300000.00 Company restructured without clearingpayment object
Others 33639.36 Without access to its account and the finalpayment is unpaid
Total 12202676.04
(3) Other Payables
1) Other Payables Listed by Nature of Account
Unit: RMB
Item Ending balance Beginning balance
Security deposit 290979176.07 316108932.91
Margin 11806030.93 13585641.99
Collection on behalf 4832329.12 3596458.33
Intercourse funds 611443690.41 855267729.70
Accrued expenses 200129074.12 224646116.70
Payment on behalf 17030579.72 19052869.33
Others 68879737.84 70625407.45
Total 1205100618.21 1502883156.41
2) Significant Other Accounts Payable Aging over One Year or Overdue
Unit: RMB
Item Ending balance Unpaid/Un-carry-over reason
Yangzhou Lvfa Real Estate Co. Ltd. 369623672.79 Intercourse funds with related partiesoutside the combination
Shenzhen Bay Technology Development
Co. Ltd. 143003641.12 Unsettled
Shenzhen Real Estate Jifa Warehousing 42296665.14 Intercourse fund without specific paymentCo. Ltd. term
Shenzhen Toutiao Technology Co. Ltd. 12340689.03 Lease term not expired
Shenzhen Qianhai Micro Public Bank Co.Ltd. 6698953.04 Lease term not expired
Total 573963621.12
3) Top 5 of the Ending Balance of the Other Payables Collected according to the Counterparty
Other notes:
35. Advances from Customers
(1) List of Advances from Customers
Unit: RMB
Item Ending balance Beginning balance
Rental 2265223.56 2260847.31
185ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Total 2265223.56 2260847.31
(2) Significant Advances from Customers Aging over One Year or Overdue
Unit: RMB
Item Ending balance Unpaid/Un-carry-over reason
Unit: RMB
Item Change in amount Reason(s)
36. Contract Liabilities
Unit: RMB
Item Ending balance Beginning balance
House payment in advance 747372309.30 857317217.99
Property fee in advance 30554843.87 15740950.87
Other payments in advance 42497800.25 47769871.95
Total 820424953.42 920828040.81
Significant contract liabilities aging over one year
Unit: RMB
Item Ending balance Unpaid/Un-carry-over reason
Significant changes in the amount of carrying value and the reason in the Reporting Period
Unit: RMB
Item Change in amount Reason(s)
37. Payroll Payable
(1) List of Payroll Payable
Unit: RMB
Item Beginning balance Increase for the current Decrease for the currentperiod period Ending balance
I. Short-term salary 234726107.97 874016347.55 890873383.85 217869071.67
II. Post-employment
benefit-defined 1650684.05 77418329.18 78330132.15 738881.08
contribution plans
III. Termination benefits 2749600.00 280143.53 2851584.50 178159.03
Total 239126392.02 951714820.26 972055100.50 218786111.78
(2) List of Short-term Salary
Unit: RMB
Item Beginning balance Increase for the current Decrease for the currentperiod period Ending balance
1. Salary bonus
allowance subsidy 216273079.86 762337469.94 775409080.68 203201469.12
2. Employee welfare 1408479.54 8017681.72 8376723.46 1049437.80
3. Social insurance 71070.35 29533078.01 29587983.54 16164.82
Of which: Medical
insurance premiums 60059.54 26315323.45 26361499.22 13883.77
186ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Work-related injury
insurance premiums 1263.70 1258003.44 1259251.18 15.96
Maternity insurance 2154.62 1959751.12 1959640.65 2265.09
Other commercial
insurances 7592.49 7592.49
4. Housing fund 1279643.31 28547576.64 28661368.07 1165851.88
5. Labor union budget
and employee education 11352966.60 16509911.48 19370797.18 8492080.90
budget
8. Non-monetary
benefits 4340868.31 29070629.76 29467430.92 3944067.15
Total 234726107.97 874016347.55 890873383.85 217869071.67
(3) List of Defined Contribution Plans
Unit: RMB
Item Beginning balance Increase for the current Decrease for the currentperiod period Ending balance
1. Basic pension
insurance 145676.75 59806897.45 59931532.14 21042.06
2. Unemployment
insurance premiums 4125.03 1544057.60 1545466.23 2716.40
3. Supplementary
pension payment 1500882.27 16067374.13 16853133.78 715122.62
Total 1650684.05 77418329.18 78330132.15 738881.08
Other notes:
38. Taxes Payable
Unit: RMB
Item Ending balance Beginning balance
VAT 17768402.21 15392042.91
Enterprise income tax 91035828.65 57096046.69
Personal income tax 3681965.62 3141049.35
Urban maintenance and construction tax 981394.80 1464551.01
Land appreciation tax 3911198870.69 3838271429.24
Land use tax 180900.74 153626.98
Property tax 539730.69 600966.66
Educational surcharge 644625.80 707668.15
Local educational fee 322573.66 383745.82
Others 603055.08 67220.00
Total 4026957347.94 3917278346.81
Other notes:
39. Held-for-sale Liabilities
Unit: RMB
Item Ending balance Beginning balance
Other notes:
187ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
40. Current Portion of Non-current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Current portion of long-term borrowings 3075993789.05 196645408.45
Current portion of long-term payables 400000.00
Lease obligation matured within 1 Year 15931064.02 22213358.37
Total 3092324853.07 218858766.82
Other notes:
41. Other Current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Tax to be charged off 68373661.13 83991786.83
Total 68373661.13 83991786.83
Increase/decrease of the short-term bonds payable:
Unit: RMB
Issued Interest Amortization Repaid
Name Par Coupon Issue Bond Issue Beginning in the accrued of premium in the Ending Defaultvalue rate date duration amount balance current at par and current balance or not
period value depreciation period
Total
Other notes:
42. Long-term Borrowings
(1) Category of Long-term Borrowings
Unit: RMB
Item Ending balance Beginning balance
Pledged loans 373646731.07 3156782344.00
Mortgage loans 625842543.40
Credit loan 400400000.00 462000000.00
Total 1399889274.47 3618782344.00
Note to the category of long-term borrowings:
The pledge borrowings at the period-end (1) were used to acquire 100% of five property management enterprises. They are Shenzhen
Property Management Co. Ltd. Shenzhen Foreign Trade Property Management Co. Ltd. Shenzhen Shenfubao Property
Development Co. Ltd. Shenzhen Shenfubao Hydropower Municipal Service Co. Ltd. and Shenzhen Free Trade Zone Security
Service Co. Ltd. by the Company's subsidiary Shenzhen International Trade Center Property Management Co. Ltd. with the
duration from 18 May 2022 to 26 April 2027. And the 100% equity of these five enterprises held by Shenzhen International Trade
Center Property Management Co. Ltd.
188ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
The pledged loans (2) at the period-end were used to develop the Humen Sea Bay Garden project of Dongguan Wuhe Real Estate Co.Ltd. a subsidiary of the Company with the duration from 30 March 2023 to 5 August 2027. All accounts receivable of Dongguan
Wuhe Real Estate Co. Ltd. in next five years was pledged.The mortgage loans (1) at the period-end were used to develop the Guangming Yutang Shangfu project of Shenzhen Guangming
Wuhe Real Estate Co. Ltd. a subsidiary of the Company with the duration from 27 July 2023 to 24 May 2028. The land use right of
Guangming Yutang Shangfu project held by Shenzhen Guangming Wuhe Real Estate Co. Ltd. was pledged.The mortgage loans (2) at the period-end were used to develop the Humen Sea Bay Garden project of Dongguan Wuhe Real Estate
Co. Ltd. a subsidiary of the Company with the duration from 5 August 2022 to 5 August 2027. The land use right of Humen Sea
Bay Garden project held by Dongguan Wuhe Real Estate Co. Ltd. was pledged.The mortgage loans (3) at the period-end were used to develop the Lanhushidai project of Shenzhen Rongyao Real Estate
Development Co. Ltd. a subsidiary of the Company (hereinafter referred to as “Rongyao Real Estate”) with the duration from 30
March 2023 to 30 March 2026.The land use right of Lanhushidai project held by Rongyao Real Estate was pledged and the Company
provided joint and several liability guarantee.The credit borrowings at the period-end were used for the transaction payment of equity of Shenzhen Toukong Property Management
Co. Ltd. with the duration from 18 May 2020 to 10 May 2025.Other notes including interest rate range:
43. Bonds Payable
(1) Bonds Payable
Unit: RMB
Item Ending balance Beginning balance
(2) Changes of Bonds Payable (Excluding Other Financial Instruments Divided as Financial Liabilities such
as Preferred Shares and Perpetual Bonds)
Unit: RMB
Issued Interest Amortization Repaid
Name Par Coupon Issue Bond Issue Beginning in the accrued of premium in the Ending Defaultvalue rate date duration amount balance current at par and current balance or not
period value depreciation period
Total - -
(3) Notes to Convertible Corporate Bonds
(4) Notes to Other Financial Instruments Classified as Financial Liabilities
Basic information about other outstanding financial instruments such as preferred shares and perpetual bonds at the period-end
Changes of outstanding financial instruments such as preferred shares and perpetual bonds at the period-end
Unit: RMB
Outstanding Period-beginning Increase for the current Decrease for the currentperiod period Period-endfinancial
instruments Number Carrying Number Carrying Number Carryingvalue value value Number
Carrying
value
Notes to basis for the classification of other financial instruments as financial liabilities
Other notes:
189ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
44. Lease Liabilities
Unit: RMB
Item Ending balance Beginning balance
Lease payments 34767450.58 119208080.55
Unrecognized financing expense -8265294.29 -19031438.63
Less: Lease obligation matured within 1
Year -15931064.02 -22213358.37
Total 10571092.27 77963283.55
Other notes:
45. Long-term Payables
Unit: RMB
Item Ending balance Beginning balance
Long-term accounts payable 400105655.56
Total 400105655.56
(1) Long-term Payables Listed by Nature
Unit: RMB
Item Ending balance Beginning balance
Sale and leaseback financing 400105655.56 0.00
Other notes:
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 22 December 2023 to 22 December 2027.
(2) Specific Payables
Unit: RMB
Item Beginning balance Increase for the Decrease for the Reason forcurrent period current period Ending balance formation
Other notes:
46. Ending balance
Reason for formation
Unit: RMB
Item Ending balance Beginning balance
(2) Changes in Defined Benefit Plans
Obligation present value of defined benefit plans:
Unit: RMB
Item Amount for the current period Amount for the previous period
Plan assets:
Unit: RMB
Item Amount for the current period Amount for the previous period
190ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Net liabilities (net assets) of defined benefit plans:
Unit: RMB
Item Amount for the current period Amount for the previous period
Notes of influence of content of defined benefit plans and its relevant risks to the future cash flow time and uncertainty of the
Company:
Notes to the results of significant actuarial assumptions and sensitivity analysis of defined benefit plans:
Other notes:
47. Provisions
Unit: RMB
Item Ending balance Beginning balance Reason for formation
Pending litigation 650000.00 766612.52 Lawsuit between FMC andBasepoint
Total 650000.00 766612.52
Other notes including notes to related significant assumptions and evaluation of significant provisions:
Refer to Note XVI-2 for details.
48. Deferred Income
Unit: RMB
Item Beginning balance Increase for the Decrease for the Reason forcurrent period current period Ending balance formation
Other notes:
49. Other Non-current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Utility specific fund 549961.59 634414.79
Housing principle fund 15997716.45 15105690.42
House warming deposit 6335914.04 7058030.03
Electric Equipment Maintenance fund 4019415.44 4019415.44
Deputed maintenance fund 52002751.04 53798172.96
Follow-up investment of employees for
Lanhu Shidai project 40000000.00 40000000.00
Others 8133466.98 7393196.15
Total 127039225.54 128008919.79
Other notes:
50. Share Capital
Unit: RMB
191ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Beginning Increase/decrease (+/-)
balance New shares Bonus shares Bonus issue
Ending balance
issued from profit Others Subtotal
Total shares 595979092.00 595979092.00
Other notes:
51. Other Equity Instruments
(1) Basic Information about Other Outstanding Financial Instruments such as Preferred Shares and Perpetual Bonds at the
Period-end
(2) Changes of Outstanding Financial Instruments such as Preferred Shares and Perpetual Bonds at the Period-end
Unit: RMB
Outstanding Period-beginning Increase for the current Decrease for the currentperiod period Period-endfinancial
instruments Number Carryingvalue Number
Carrying
value Number
Carrying Number Carryingvalue value
Changes of other equity instruments in the Current Period reasons thereof and basis of related accounting treatment:
Other notes:
52. Capital Reserve
Unit: RMB
Item Beginning balance Increase for the current Decrease for the currentperiod period Ending balance
Other capital reserves 80488045.38 80488045.38
Total 80488045.38 80488045.38
Other notes including a description of the increase or decrease for the current period and the reasons for the change:
53. Treasury Shares
Unit: RMB
Item Beginning balance Increase for the current Decrease for the currentperiod period Ending balance
Other notes including a description of the increase or decrease for the current period and the reasons for the change:
54. Other Comprehensive Income
Unit: RMB
Amount for the current period
Amount Less: recorded Less: recorded
before in other in othercomprehensive comprehensive AttributableBeginning deducting AttributableItem Endingbalance income tax income in income in
Less: to the
Income tax Company as minority balance
for the prior period prior period shareholders
current and transferred and transferred
expense the parent
in profit or in retained after tax
after tax
period loss in the earnings in the
192ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
current period current period
I. Other
comprehensive
income that - - -
may not be 2742841.65 261743.15 -261743.15 3004584.80
reclassified to
profit or loss
Changes in
fair value of
other equity - - -
instrument 2742841.65 261743.15
-261743.153004584.80
investment\
II. Other
comprehensive
income that
may -
subsequently 1111536.30 763783.22 763783.22 -347753.08
be reclassified
to profit or
loss
Differences
arising from
translation of
foreign -
currency- 1111536.30 763783.22 763783.22 -347753.08
denominated
financial
statements
Total of other
comprehensive - -
income 3854377.95
502040.07502040.073352337.88
Other notes including the adjustment of the effective gain/loss on cash flow hedges to the initial recognized amount:
55. Specific Reserve
Unit: RMB
Item Beginning balance Increase for the current Decrease for the currentperiod period Ending balance
Other notes including a description of the increase or decrease for the current period and the reasons for the change:
56. Surplus Reserves
Unit: RMB
Item Beginning balance Increase for the current Decrease for the currentperiod period Ending balance
Statutory surplus
reserves 48527172.97 67216150.98 115743323.95
Discretional surplus
reserves 365403.13 365403.13
Total 48892576.10 67216150.98 116108727.08
Notes including changes and reason of change:
57. Undistributed profits
Unit: RMB
Item Current period Previous period
193ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Beginning balance of retained profits
before adjustments 3692753832.81 3788180758.20
Adjust the total amount of undistributed
profits at the beginning of the year 14220566.25
(increase + decrease -)
Beginning balance of retained profits after
adjustments 3692753832.81 3802401324.45
Add: Net profit attributable to owners of
the Company as the parent 464014492.11 537291574.13
Less: Withdrawal of statutory surplus
reserve 67216150.98 19249276.92
Dividends of common shares payable 215148452.21 405265782.56
Others 1816919.56 222424006.29
Ending retained profits 3872586802.17 3692753832.81
List of adjustment of beginning retained profits:
1) RMB1697650.08 beginning retained earnings was affected by retrospective adjustment conducted according to the Accounting
Standards for Business Enterprises and relevant new regulations.
2) RMBXXX beginning retained earnings was affected by changes in accounting policies.
3) RMBXXX beginning retained earnings was affected by correction of significant accounting errors.
4) RMB beginning retained profits was affected by changes in combination scope arising from same control.
5) RMBXXX beginning retained earnings was affected totally by other adjustments.
58. Operating Revenue and Cost of Sales
Unit: RMB
Amount for the current period Amount for the previous period
Item
Revenue Cost Revenue Cost
Principal business 2947291675.00 2233525382.49 3690816438.73 1978777621.22
Others 17825350.04 17852608.12
Total 2965117025.04 2233525382.49 3708669046.85 1978777621.22
Whether the lower of the net profit before and after deduction of non-recurring gains and losses through audit is negative
□Yes □ No
Unit: RMB
Item This year Details Same period of last year Details
Excluding business
income unrelated to the
main business it mainly
consisted of income from
Excluding business
temporary resettlement
income unrelated to the
compensation for the
main business it mainly
Chuanbujie scaffolding
consisted of income from
Amount of operating and income from
income 2965117025.04 temporary resettlement 3708669046.85 consulting services and
compensation for the
revenue of the
Chuanbujie scaffolding
consolidated party from
and income from
the beginning of the
consulting services.period to the date of
consolidation under a
same-control
combination.Excluding business Excluding business
Total amount of items
deducted from operating income unrelated to the income unrelated to the17825350.04 91555827.12
income main business it mainly main business it mainly
consisted of income from consisted of income from
194ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
temporary resettlement temporary resettlement
compensation for the compensation for the
Chuanbujie scaffolding Chuanbujie scaffolding
and income from and income from
consulting services. consulting services and
revenue of the
consolidated party from
the beginning of the
period to the date of
consolidation under a
same-control
combination.Proportion of the total
amount of items
deducted from operation 0.60% 2.47%
income in operating
income
I. Business income
irrelevant to principal
business
1. Income from
operations other than
normal operations. Such
as leasing of fixed assets
intangible assets
Excluding business Excluding business
packaging sales of
income unrelated to the income unrelated to the
materials non-monetary
main business it mainly main business it mainly
exchange of assets with
consisted of income from consisted of income from
materials income
17825350.04 temporary resettlement 17852608.12 temporary resettlement
realized from the
compensation for the compensation for the
operation of fiduciary
Chuanbujie scaffolding Chuanbujie scaffolding
management business
and income from and income from
etc. as well as income
consulting services. consulting services.included in the income
from the main business
but outside the normal
operation of the listed
company.In January 2022 ITC
Property Management a
subsidiary of the
Company acquired
100% equity interest in
Shenzhen Property
Management Co. Ltd.through a business
5. Income of subsidiaries combination under the
acquired in business same control.combination under the In February 2022 ITC
same control from the 73703219.00 Property Management a
period-beginning to the subsidiary of the
combination date. Company acquired100% equity interest in
Shenzhen Shenfubao
Property Development
Co. Ltd. Shenzhen
Shenfubao Hydropower
Municipal Service Co.Ltd. Shenzhen Free
Trade Zone Security
Service Co. Ltd. and
195ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Shenzhen Free Trade
Zone Property
Development Co. Ltd.through a business
combination under the
same control.Excluding business
income unrelated to the
main business it mainly
consisted of income from
Excluding business
temporary resettlement
income unrelated to the
compensation for the
main business it mainly
Chuanbujie scaffolding
Subtotal of business consisted of income from
income irrelevant to and income from17825350.04 temporary resettlement 91555827.12
principal business consulting services andcompensation for the
revenue of the
Chuanbujie scaffolding
consolidated party from
and income from
the beginning of the
consulting services.period to the date of
consolidation under a
same-control
combination.II. Income without
commercial substance
Subtotal of income
without commercial 0.00 No deductions in 2023 0.00 No deductions in 2022
substance
III. Other income
irrelevant to principal
business or without 0.00 No deductions in 2023 0.00 No deductions in 2022
commercial substance
Excluding business
income unrelated to the
main business it mainly
consisted of income from
Excluding business
temporary resettlement
income unrelated to the
compensation for the
main business it mainly
Chuanbujie scaffolding
consisted of income from
Amount of operating and income from
income after deduction 2947291675.00 temporary resettlement 3617113219.73 consulting services and
compensation for the
revenue of the
Chuanbujie scaffolding
consolidated party from
and income from
the beginning of the
consulting services.period to the date of
consolidation under a
same-control
combination.Breakdown information of operating income and operating cost:
Unit: RMB
Segment 1 Segment 2 Total
Category of Operatin Operatin
contracts Operating
Revenue Operating cost g
Operatin g Operatin Operatingg cost g cost Revenue Operating costRevenue Revenue
Business 2965117025.0 2233525382.4 2965117025.0 2233525382.4
Type 4 9 4 9
Of which:
Real estate 1234537188.6 1234537188.6
818496053.38818496053.38
business 2 2
196ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Property 1578719323.9 1316777091.3 1578719323.9 1316777091.3
management 8 2 8 2
Leasing
151860512.4498252237.79151860512.4498252237.79
business
Classificatio
n by
operating
region
Of which:
2569038060.41865113132.62569038060.41865113132.6
Shenzhen
6868
Other
396078964.58368412249.81396078964.58368412249.81
regions
Market or
customer
type
Of which:
Contract
type
Of which:
Classificatio
n by time of
commodity
transfer
Of which:
Classificatio
n by contract
term
Of which:
Classificatio
n by sales
channel
Of which:
Total
Information about performance obligations:
Timing of Nature of goods
Funds Type of quality
fulfilment of Important that the
Whether or not undertaken by assurance
Item the person the Company provided by theperformance payment terms Company iscommitted to primarily expected to be Company andobligations transfer responsible returned to relatedcustomers obligations
Other notes:
Information in relation to the transaction price apportioned to the residual contract performance obligation:
The amount of revenue corresponding to performance obligations of contracts signed but not performed or not fully performed yet
was RMB820424953.42 at the period-end among which RMB817430542.61 was expected to be recognized in 2024
RMB1812877.92 was expected to be recognized in 2025 and RMB1181532.89 was expected to be recognized in 2026 and 2027.Information related to variable consideration in contracts:
197ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Significant contract changes or significant transaction price adjustments
Unit: RMB
No. Name of project Amount of revenue
1 SZPRD-Fuchang Garden Phase II 977069378.47
2 SZPRD-Golden Collar’s Resort 191609379.17
3 SZPRD-Hupan Yujing Phase I 19045688.07
4 SZPRD-Songhu Langyuan 3417922.80
5 SZPRD-Hupan Yujing Phase II 576078.89
Other notes:
59. Taxes and Surtaxes
Unit: RMB
Item Amount for the current period Amount for the previous period
Urban maintenance and construction tax 7295168.53 11647933.20
Educational surcharge 3290186.80 5019133.52
Property tax 11160717.95 5773106.72
Land use tax 2118518.10 783939.43
Local educational fee 2153783.29 3314949.88
Land appreciation tax 78815376.80 695789536.89
Other taxes 1816495.35 3592058.16
Total 106650246.82 725920657.80
Other notes:
60. Administrative Expense
Unit: RMB
Item Amount for the current period Amount for the previous period
Employee remuneration 228440720.91 238534091.52
Administrative office cost 26172003.04 28064014.57
Assets amortization and depreciation
expense 24574492.30 26431430.81
Litigation costs 5304840.82 960169.09
Others 26086318.08 36001949.75
Total 310578375.15 329991655.74
Other notes:
61. Selling Expense
Unit: RMB
Item Amount for the current period Amount for the previous period
Agency fee 7326766.93 30682192.07
198ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Consultancy and sales service charges 7845564.84 5037241.10
Advertising expenses 10747667.28 2582813.39
Employee remuneration 9989326.02 7740228.91
Others 10847833.50 7499522.31
Total 46757158.57 53541997.78
Other notes:
62. Development Expense
Unit: RMB
Item Amount for the current period Amount for the previous period
Employee remuneration 3808250.90 2948680.83
Depreciation and amortization expense 65160.46 87038.92
Others 260073.01 208409.36
Total 4133484.37 3244129.11
Other notes:
63. Finance Costs
Unit: RMB
Item Amount for the current period Amount for the previous period
Finance costs 55928873.37 64941564.63
Less: Interest income -19183529.19 -21591864.72
Foreign exchange gains or losses 761442.10 -600187.19
Others 6339243.02 7821671.11
Total 43846029.30 50571183.83
Other notes:
64. Other Income
Unit: RMB
Sources Amount for the current period Amount for the previous period
Government grants related to income 7802977.21 10637742.42
Government grants related to assets
Return of auxiliary expense for individual
income tax withheld 382244.19 282364.88
Additional deduction of VAT 5302600.13 8204836.92
Rebate of VAT 1944370.99 359114.45
Total 15432192.52 19484058.67
199ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
65. Gain on Changes in Fair Value
Unit: RMB
Sources Amount for the current period Amount for the previous period
Trading Financial Assets 117082.19
Total 117082.19
Other notes:
66. Investment Income
Unit: RMB
Item Amount for the current period Amount for the previous period
Long-term equity investment income
accounted by equity method 4339433.24 2040461.81
Income from the disposal of long-term
equity investments 701420219.12
Funds central clearing house money
management investment -59130.91
Total 705759652.36 1981330.90
Other notes:
The investment income arising from the disposal of long-term equity investments during the period was attributable to the disposal of
100% equity interest in a subsidiary Shenzhen Jinghengtai Real Estate Development Co. Ltd. (hereinafter referred to as "Jinghengtai
Company"). The 21st meeting of the 10th session of the Board of Directors of the Company and the first extraordinary shareholders'
general meeting in 2023 considered and passed the Proposal on the Public Listing Transfer of 100% Equity of Wholly-owned
Subsidiary Shenzhen Jinghengtai Real Estate Development Co. Ltd. which authorized the public listing transfer of 100% equity of
Jinghengtai Company on the Shenzhen United Equity Exchange with a listing price of RMB835 million. On December 21 2023 the
Company and Hualian Holdings Company Limited (hereinafter referred to as "Hualian Holdings") signed the Property Rights
Transaction Contract and the Supplementary Agreement to the Property Rights Transaction Contract (hereinafter referred to as the
"Transaction Contract"). (hereinafter referred to as the "Transaction Contract").On December 22 2023 Hualian Holdings made a
one-off payment of RMB835 million for the entire transaction price as agreed in the Transaction Contract. On December 22 2023
the industrial and commercial change and registration procedures involved in the equity transfer were completed and 100% equity
interest of Jinghengtai Company was changed to the name of Hualian Holdings and the Company no longer held equity interest in
Jinghengtai Company.
67. Credit Impairment Loss
Unit: RMB
Item Amount for the current period Amount for the previous period
Bad debt loss -19844952.87 -17395139.90
Total -19844952.87 -17395139.90
Other notes:
68. Asset Impairment Loss
Unit: RMB
Item Amount for the current period Amount for the previous period
I. Inventory falling price loss and
impairment provision for contract -212173623.03 -528430.23
performance costs
200ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Total -212173623.03 -528430.23
Other notes:
69. Asset Disposal Income
Unit: RMB
Sources Amount for the current period Amount for the previous period
Gains on disposal of fixed assets 4611.81 -130574.60
Investment properties disposal gains 175811822.99
Gain on disposal of right-of-use assets 594704.56
Others 234052.82 129357.05
Total 833369.19 175810605.44
70. Non-operating Income
Unit: RMB
Item Amount for the current period Amount for the previous period Amount recorded in the currentnon-recurring profit or loss
Gains on exchange of non-
monetary assets 16447.29 5963.68 16447.29
Confiscated income 2041279.63 354580.59 2041279.63
Payments unable to clear 34134.00 3129253.59 34134.00
Cash overstatement gain 300.00 300.00
Others 1512516.17 3708206.42 1512516.17
Total 3604677.09 7198004.28 3604677.09
Other notes:
71. Non-operating Expense
Unit: RMB
Item Amount for the current period Amount for the previous period Amount recorded in the currentnon-recurring profit or loss
Loss on the swap of non-
monetary assets 142785.08 207427.68 142785.08
Donation 79840.57 26000.00 79840.57
Litigation expenses 694346.32 258891.82 694346.32
Abnormal loss 8800.00 8800.00
Penalty and fine for delaying
payment 1962837.07 121377.17 1962837.07
Others 3615895.16 1943197.07 3615895.16
Total 6504504.20 2556893.74 6504504.20
Other notes:
201ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
72. Income Tax Expense
(1) List of Income Tax Expense
Unit: RMB
Item Amount for the current period Amount for the previous period
Current income tax expense 142880361.95 324691681.99
Deferred income tax expense 113993935.97 -102969556.33
Total 256874297.92 221722125.66
(2) Adjustment Process of Accounting Profit and Income Tax Expense
Unit: RMB
Item Amount for the current period
Total profit 706733159.40
Current income tax expense accounted at statutory/applicable tax rate 176683289.85
Influence of applying different tax rates by subsidiaries -5415376.77
Influence of income tax before adjustment 5569790.87
Effects of non-taxable revenue -1084858.31
Influence of non-deductible costs expenses and losses 25375468.22
Effects of non-deductible costs expenses and losses Effects of the utilization
of deductible losses on which deferred income tax assets were unrecognized in 708571.83
the prior period
Effect of deductible temporary differences or deductible losses on deferred
income tax assets not recognized in the current period 55037412.23
Income tax expense 256874297.92
Other notes:
73. Other Comprehensive Income
Refer to Note VII-54 for details.
74. Cash Flow Statement
(1) Cash Related to Operating Activities
Cash Generated from Other Operating Activities
Unit: RMB
Item Amount for the current period Amount for the previous period
Large intercourse funds received 117918299.90 531021536.31
Interest income 19183529.19 21591864.72
Net margins security deposit and various
special funds received 114428356.99 118560933.18
Government grants received 7802977.21 10637742.42
Other small receivables 88094832.06 30089906.24
Decreased limited amount for the current 7835036.35 366965985.73
202ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
period
Total 355263031.70 1078867968.60
Notes:
Cash Used in Other Operating Activities
Unit: RMB
Item Amount for the current period Amount for the previous period
Paying administrative expense in cash 63006009.01 61038183.86
Paying selling expense in cash 36673353.00 48198423.56
Net payment of utility expense and various
collecting payments on behalf of others 115368992.19 79085946.82
Other small payments 41068618.68 47884937.67
Amount of newly limited funds 15659341.60 1721815.22
Total 271776314.48 237929307.13
Notes:
(2) Cash Related to Investing Activities
Cash Generated from Other Investing Activities
Unit: RMB
Item Amount for the current period Amount for the previous period
Significant cash received related to investing activities
Unit: RMB
Item Amount for the current period Amount for the previous period
Net cash received from disposal of
subsidiaries and other operating units 634578885.34
Total 634578885.34
Notes:
Cash Used in Other Investing Activities
Unit: RMB
Item Amount for the current period Amount for the previous period
Significant cash paid related to investing activities
Unit: RMB
Item Amount for the current period Amount for the previous period
Notes:
203ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
(3) Cash Related to Financing Activities
Cash Generated from Other Financing Activities
Unit: RMB
Item Amount for the current period Amount for the previous period
Receipt of sale and leaseback financing 400000000.00
Total 400000000.00 0.00
Notes:
Cash Used in Other Financing Activities
Unit: RMB
Item Amount for the current period Amount for the previous period
Cash consideration paid by the merging
party in a business combination under 1816919.56 271489501.62
common control at the combination date
Profits allocation from consolidated
companies under common control to 5339999.94
former shareholders
Payment for lease liabilities 25266936.77 29681985.71
Total 27083856.33 306511487.27
Notes:
Changes in liabilities arising from financing activities
□Applicable□Not applicable
(4) Description of Cash Flows Presented on a Net Basis
Item Relevant factual information Basis for using net presentation Financial impact
(5) Significant Activities and Financial Impact that Do Not Involve Current Cash Receipts and
Disbursements but Affect the Company's Financial Position or May Affect the Company's Cash Flows in
the Future
75. Supplemental Information for Cash Flow Statement
(1) Supplemental Information for Cash Flow Statement
Unit: RMB
Supplemental information Amount during the current period Previous period
1. Reconciliation of net profit to net cash
flows generated from operating activities
Net profit 449858861.48 529010293.32
Add: Provision for impairment of assets 232018575.90 17923570.13
Depreciation of fixed assets oil-gas assets
and productive biological assets 55281119.81 89598947.26
Depreciation of right-of-use assets 18139758.01 22380277.42
204ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Amortization of intangible assets 379581.77 484006.42
Amortization of long-term prepaid
expenses 7726470.46 7522321.06
Losses from disposal of fixed assets
intangible assets and other long-lived -833369.19 -170564114.45assets (gains represented by “-")Losses from scrap of fixed assets (gainsrepresented by “-") 126337.79 201464.00Losses from changes in fair value (gainsrepresented by “-") -117082.19Finance costs (gains represented by “-") 55167431.27 69585200.52Investment loss (gains represented by “-") -705759652.36 -1981330.90Decrease in deferred income tax assets(gains represented by “-") 131110960.37 -102903681.08Increase in deferred income tax liabilities(decrease represented by “-") -17117024.40 -65875.25Decrease in inventory (gains representedby “-") -485801483.89 -1729017854.81Decrease in accounts receivable generated
from operating activities (gains represented -69297620.74 611487330.14by “-")Increase in accounts payable used in
operating activities (decrease represented 64907069.39 761689632.27by “-")Others
Net cash flows from operating activities -264092984.33 105233103.86
2. Significant investing and financing
activities without involvement of cash
receipts and payments
Conversion of debt to capital
Convertible corporate bonds matured
within one year
Fixed asset under finance lease
3. Net increase/decrease of cash and cash
equivalent:
Closing balance of cash 2733139135.12 1509693857.48
Less: Opening balance of cash 1509693857.48 1907742235.25
Add: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents 1223445277.64 -398048377.77
(2) Net Cash Paid for Acquisition of Subsidiaries
Unit: RMB
Amount
Of which:
Of which:
Of which:
Other notes:
(3) Net Cash Received from Disposal of the Subsidiaries
Unit: RMB
205ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Amount
Cash or cash equivalents received in the current period from the
disposal of subsidiaries in the current period 835000000.00
Of which:
Less: cash and cash equivalents held by subsidiaries on the date
of losing control power 200421114.66
Of which:
Of which:
Net cash proceeds from the disposal of subsidiaries 634578885.34
Other notes:
(4) Cash and Cash Equivalents
Unit: RMB
Item Ending balance Beginning balance
I. Cash 2733139135.12 1509693857.48
Of which: Cash on hand 75265.01 43833.00
Bank deposits on demand 2729897603.00 1506148081.54
Other monetary assets on demand 3166267.11 3501942.94
III. Ending balance of cash and cash
equivalents 2733139135.12 1509693857.48
(5) Presentation of Cash and Cash Equivalents that Are Subject to Certain Restrictions on Their Usage
Unit: RMB
Item Amount during the Previous period Reason for classifying the item as cash and cashcurrent period equivalents
These are funds within the presale supervision
quota of the project which we can apply for in
Pre-sale funds for Guangming 640559629.03 0.00 accordance with the relevant regulations on theYutang Shangfu Project supervision of presale funds to pay for the
construction expenditures of the project and the
relevant statutory taxes and fees.Total 640559629.03 0.00
(6) Monetary Assets Not Classified as Cash and Cash Equivalents
Unit: RMB
Reason for not classifying the
Item Amount during the currentperiod Previous period item as cash and cashequivalents
Other notes:
(7) Notes on Other Significant Activities
76. Notes to Items of the Statements of Changes in Owners' Equity
Notes to the name of “Other” of closing balance at the end of the previous year adjusted and the amount adjusted:
206ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
77. Foreign Currency Monetary Items
(1) Foreign Currency Monetary Items
Unit: RMB
Item Closing foreign currency Exchange rate Ending balance converted tobalance RMB
Monetary capital 63425102.95
Of which: USD 120000.00 7.0827 849924.00
EUR
HKD 63245266.17 0.9062 57312860.20
VND 17960132240.00 0.000293 5262318.75
Accounts receivable 5944668.99
Of which: USD
EUR
HKD
VND 20288972667.00 0.000293 5944668.99
Long-term borrowings
Of which: USD
EUR
HKD
Accounts prepaid 85071.12
Of which: VND 290345128.00 0.000293 85071.12
Other receivables 275544.61
Of which: HKD 66215.94 0.9062 60004.88
VND 735630492.00 0.000293 215539.73
Accounts payable 648634.87
Of which: HKD 56000.00 0.9062 50747.20
VND 2040572245.00 0.000293 597887.67
Other payables 1845634.27
Of which: HKD 356603.25 0.9062 323153.87
VND 5196178850.00 0.000293 1522480.40
Other notes:
(2) Notes to Overseas Entities Including: for Significant Oversea Entities Main Operating Place Recording
Currency and Selection Basis Shall Be Disclosed; if there Are Changes in Recording Currency Relevant
Reasons Shall Be Disclosed.□Applicable □Not applicable
Main operating StandardItem place currency for Basis for choosingaccounting
Shum Yip Development Company Limited
and its subsidiaries Hong Kong HKD Located in HK settled by HKD
Vietnam Shenguomao Property
Management Co. Ltd. Vietnam VND Located in Vietnam settled by VND
207ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
78. Lease
(1) The Company Was Lessee:
□Applicable □Not applicable
Variable lease payments that are not covered in the measurement of the lease liabilities
□Applicable□Not applicable
Simplified short-term lease or lease expense for low-value assets
□Applicable □Not applicable
Amount recognized in profit or loss
Currency: RMB
Category Amount for the year
Depreciation expense on right-of-use assets (Note 1) 18139758.01
Interest expense on lease liabilities (Note 2) 3818066.83
Expense relating to short-term leases 7843708.84
Lease expense for low-value assets
Variable lease payments that are not covered in the measurement of the lease
liabilities (Note 3)
Income from underlease of right-of-use assets 2330334.89
Total cash outflows related to leases 25266936.77
Note 1: There was no depreciation expense on capitalized right-of-use assets in 2023.Note 2: There was no interest expense on capitalized lease liabilities in 2023.Note 3: There were no variable lease payments not included in the measurement of lease liabilities in 2023.Circumstances involving sale and leaseback transactions
In December 2023 the Company entered into a sale and leaseback contract with MAXWEALTH Financial Leasing Co. Ltd. for the
transfer of certain office equipment with a leaseback period of 48 months. Since the fixed assets were not transferred to the purchaser
from the beginning to the end it was judged not to be a sale and the amount received was accounted for as a liability.
(2) The Company Was Lessor:
Operating leases with the Company as lessor
□Applicable □Not applicable
Unit: RMB
Item Rental income Of which: income related to variable leasepayments not included in lease receipts
Lease items 151860512.44
Total 151860512.44
Finance leases with the Company as lessor
□Applicable□Not applicable
Undiscounted lease receipts for each of the next five years
□Applicable □Not applicable
208ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Undiscounted lease receipts per year
Item
Ending amount Beginning amount
The 1st year 124863019.23 153626556.21
The 2nd year 70271138.44 115333626.11
The 3rd year 42292889.70 59371122.09
The 4th year 32718754.54 40073621.45
The 5th year 24297422.32 32034337.31
Total undiscounted lease receipts after
14891056.4333038892.86
five years
Unit: RMB
Reconciliation of undiscounted lease receipts to net investment in leases
(3) Recognition of Gain or Loss on Sales under Finance Leases with the Company as a Manufacturer or
Distributor
□Applicable□Not applicable
79. Others
VIII. Research and Development Expenditure
Unit: RMB
Item Amount for the current period Amount for the previous period
Staff costs 3808250.90 2948680.83
Depreciation and amortization expense 65160.46 87038.92
Other 260073.01 208409.36
Total 4133484.37 3244129.11
Of which: Expensed research and
4133484.373244129.11
development expenditure
1. R&D Projects Eligible for Capitalization
Unit: RMB
Increased amount of the current period Decreased amount for the current period
Item Beginning Internal Recognized
Transferred Ending
balance development Others as intangible into the balance
costs assets current profitor loss
Total
Significant capitalized R&D projects
Estimated Expected manner of Time of Specific basis forItem R&D progress completion date generation of commencement of commencement ofeconomic benefits capitalization capitalization
Provision for impairment of development expenditure
209ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Unit: RMB
Item Beginning balance Increase for the Decrease for thecurrent period current period Ending balance Impairment testing
2. Significant Outsourced Research and Development Projects in Progress
Project name Manner in which the economic benefits are Judgment criteria and specific basis forexpected to be generated capitalization or expensing
Other notes:
IX. Change of Consolidation Scope
1. Business Combination Not under the Same Control
(1) Business Combination Not under the Same Control during the Current Period
Unit: RMB
Cash flows
Income of Net profits of the
Time and
Name of place of Cost of
Recognition acquiree of acquiree acquiree
acquiree gaining gaining the
Proportion Way to Purchase basis of from the from the from the
equity of equity gain equity date purchase purchase purchase purchaseequity date date to date to date to the
period-end period-end end of the
period
Other notes:
(2) Combination Cost and Goodwill
Unit: RMB
Combination cost
-Cash
-Fair value of non-cash assets
-Fair value of debt issued or assumed
-Fair value of equity securities issued
-Fair value of contingent consideration
-Fair value of equity interests held before the purchase date
--Other
Total combination costs
Less: share in the fair value of identifiable net assets acquired
The amount of goodwill/combination cost less than the share in
the fair value of identifiable net assets acquired
Method of determining the fair value of the cost of consolidation:
Notes to contingent consideration and changes therein
The main formation reason for the large goodwill:
Other notes:
210ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
(3) The Identifiable Assets and Liabilities of Acquiree on Purchase Date
Unit: RMB
Fair value on purchase date Carrying value on purchase date
Assets:
Monetary capital
Accounts receivable
Inventories
Fixed assets
Intangible assets
Liabilities:
Borrowings
Accounts payable
Deferred income tax liabilities
Net assets
Less: non-controlling interests
Net assets acquired
The determination method of the fair value of identifiable assets and liabilities:
Contingent liability of acquiree undertaken in the business combination:
Other notes:
(4) Gains or Losses from Re-measurement of Equity Held before the Purchase Date at Fair Value
Whether there is a transaction that through multiple transaction step by step to realize business combination and gaining the control
during the Reporting Period
□Yes□No
(5) Notes to Reasonable Consideration or Fair Value of Identifiable Assets and Liabilities of the Acquiree that Cannot Be
Determined on the Acquisition Date or during the Period-end of the Merger
(6) Other Notes
2. Business Combination under the Same Control
(1) Business Combination under the Same Control during the Current Period
Unit: RMB
Income from Net profits
Recognition the period- from the Income of
Net profits
of the
Combined Proportion of Basis Combination basis of begin to the
period-begin the acquiree
party the equity date combination combination to the during the
acquiree
date date of the combination period of
during the
period of
acquiree date of the comparisonacquiree comparison
Other notes:
211ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
(2) Combination Cost
Unit: RMB
Combination cost
-Cash
--Carrying value of non-cash assets
--Carrying value of debt issued or assumed
--Denomination value of equity securities issued
--Contingent consideration
Contingent liabilities and changes thereof:
Other notes:
(3) The Carrying Value of Assets and Liabilities of the Combined Party on the Combination Date
Unit: RMB
Combination date End of the previous period
Assets:
Monetary capital
Accounts receivable
Inventories
Fixed assets
Intangible assets
Liabilities:
Borrowings
Accounts payable
Net assets
Less: non-controlling interests
Net assets acquired
Contingent liabilities of the combined party undertaken in the business combination:
Other notes:
3. Counter Purchase
Basic information of trading the basis of transactions constitute counter purchase the retain assets liabilities of the listed companies
whether constituted a business and its basis the determination of the combination costs the amount and calculation of adjusted rights
and interests in accordance with the equity transaction process:
4. Disposal of Subsidiary
Whether there were any transactions or events during the period in which control of the subsidiary was lost
□Yes □ No
Unit: RMB
Name of Disposal price Disposal Disposal Time of Basis for Difference Proportion Carrying Fair value Gains or Method of Amount of
subsidiaries at thetime of ratio at method losing judging the between the of value of the of the losses from determining otherloss of control the time at the control time of loss disposal price remaining remaining remaining re- the fair comprehensive
212ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
of loss time of power of control and the equity at equity equity measurement value of the income related
of loss of Company’s the date of interest at interest at of residual remaining to equity
control control share of the loss of the level of the equity at fair equity investment of
subsidiary’s net control the consolidated value interest at former
assets in the consolidated financial the subsidiaries
consolidated financial statement consolidated transferred
financial statements level at the financial into
statements at the date date of loss statement investment
relevant to the of loss of of control level at the gain or loss or
disposed equity control date of loss retained
interest of control earnings
and major
assumptions
Signed the
property
rights
transaction
contract
and
collection
Shenzhen of the
Jinghengtai Sale of 22 entire
Real Estate 835000000.00 100.00% equity December transaction 701420219.12 0.00% 0.00 0.00 0.00 0.00
Development interests 2023 price and
Co. Ltd. completed
the
registration
of
industrial
and
commercial
changes.Other notes:
Whether there was a step-by-step disposal of investment in a subsidiary through multiple transactions and loss of control during the
current period
□Yes□No
5. Changes in Combination Scope for Other Reasons
Notes of other changes in the combination scope (e.g. new subsidiaries liquidation of subsidiaries etc.) and relevant situations:
Subsidiary Zhanjiang Branch of Shenzhen Properties & Resources Development (Group) Ltd. completed the registration of industrial
and commercial deregistration in June 2023.Subsidiary Shenzhen Huazhengpeng Property Management Development Co. Ltd. completed the registration of industrial and
commercial deregistration in September 2023.
6. Other
X. Equity in Other Entities
1. Equity in Subsidiaries
(1) Compositions of the Group
Unit: RMB
Shareholding percentage
Name of Main
subsidiaries Registered capital operating
Place of
registration Business nature
(%) Way of
place Directly Indirectly gaining
Shenzhen
Huangcheng Real 30000000.00 Shenzhen Shenzhen Real estate 100.00% Set-up
Estate Co. Ltd.Shenzhen Wuhe
Industry
Investment 100000000.00 Shenzhen Shenzhen Real estate 100.00% Set-up
Development Co.
213ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Ltd.Shenzhen Facility
Management Software and Business
Community 15453000.00 Shenzhen Shenzhen information combination
Technology Co. technology
35.00% not under the
Ltd. services same control
Beijing Facility Software and Business
Home Technology 5000000.00 Beijing Beijing information combination
Co. Ltd. technology
17.85% not under the
services same control
SZPRD Xuzhou
Dapeng Real
Estate 50000000.00 Xuzhou Xuzhou Real estate 100.00% Set-up
Development Co.Ltd.Dongguan ITC
Changsheng Real
Estate 20000000.00 Dongguan Dongguan Real estate 100.00% Set-up
Development Co.Ltd.SZPRD Yangzhou
Real Estate
Development Co. 50000000.00 Yangzhou Yangzhou Real estate 100.00% Set-up
Ltd.Shenzhen
International
Trade Center
Property 20000000.00 Shenzhen Shenzhen Real estate 100.00% Set-up
Management Co.Ltd.Shenzhen
Guomaomei Life 5000000.00 Shenzhen Shenzhen Real estate 100.00% Set-up
Service Co. Ltd.Shandong
Shenguomao Real
Estate 5000000.00 Jinan Jinan Service industry 100.00% Set-up
Management Co.Ltd.Chongqing
Shenguomao Real
Estate 5000000.00 Chongqing Chongqing Real estate 100.00% Set-up
Management Co.Ltd.Chongqing Aobo
Elevator Co. Ltd. 5000000.00 Chongqing Chongqing Service industry 100.00% Set-up
Chongqing
Tianque Elevator
Technology Co. 5000000.00 Shenzhen Shenzhen Service industry 100.00% Set-up
Ltd.Shenzhen
Guoguan
Electromechanical 1200000.00 Shenzhen Shenzhen Service industry 100.00% Set-up
Device Co. Ltd.Shenzhen
Guomao Catering 2000000.00 Shenzhen Shenzhen Accommodationand catering 100.00% Set-upCo. Ltd.Shenzhen
Property
Engineering and
Construction 3000000.00 Shenzhen Shenzhen Service industry 100.00% Set-up
Supervision Co.Ltd.SZPRD
Commercial
Operation Co. 40000000.00 Shenzhen Shenzhen Service industry 100.00% Set-up
Ltd.
214ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Shum Yip
Development HKD20000000.00 Hong Kong Hong Kong Real estate 100.00% Set-up
Company Limited
Wayhang
Development Co. HKD2.00 Hong Kong Hong Kong Real estate 100.00% Set-up
Ltd.Chief Link
Properties Co. HKD100.00 Hong Kong Hong Kong Real estate 70.00% Set-up
Ltd.Business
Syndis Investment
Co. Ltd. HKD4.00 Hong Kong Hong Kong Real estate 70.00%
combination
not under the
same control
Yangzhou
Shouxihu Jingyue
Property 10000000.00 Yangzhou Yangzhou Real estate 51.00% Set-up
Development Co.Ltd.Shandong
International
Trade Center 3000000.00 Jinan Jinan AccommodationHotel and catering 100.00% Set-up
Management Co.Ltd.Shenzhen
Shenshan Special
Cooperation Zone
Guomao Property 5000000.00 Shenzhen Shenzhen Real estate 65.00% Set-up
Development Co.Ltd.Shenzhen
Guomao Tongle
Property 2000000.00 Shenzhen Shenzhen Real estate 51.00% Set-up
Management Co.Ltd.Shenzhen
Rongyao Real Business
Estate 10000000.00 Shenzhen Shenzhen Real estate 69.00% combination
Development Co. not under the
Ltd. same control
Shenzhen ITC Business
Technology Park 30000000.00 Shenzhen Shenzhen Real estate 100.00% combination
Service Co. Ltd. under thesame control
Shenzhen Julian Business
Human Resources
Development Co. 300000.00 Shenzhen Shenzhen Service industry 100.00%
combination
under the
Ltd. same control
Shenzhen
Penghongyuan Business
Industrial 8000000.00 Shenzhen Shenzhen Service industry 100.00% combination
Development Co. under the
Ltd. same control
Shenzhen
Jinhailian Business
Property 3000000.00 Shenzhen Shenzhen Service industry 100.00% combination
Management Co. under the
Ltd. same control
Business
Shenzhen Social
Welfare Co. Ltd. 35000000.00 Shenzhen Shenzhen Service industry 100.00%
combination
under the
same control
Shenzhen Business
Fuyuanmin
Property 10000000.00 Shenzhen Shenzhen Real estate 100.00%
combination
under the
Management same control
215ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Limited Liability
Company
Shenzhen
Meilong Business
Industrial 5000000.00 Shenzhen Shenzhen Service industry 100.00% combination
Development Co. under the
Ltd. same control
Shenzhen Public facilities Business
Guomao Shenlv 10600000.00 Shenzhen Shenzhen management 90.00% combination
Garden Co. Ltd. services under thesame control
Shenzhen Jiayuan Business
Property
Management Co. 1000000.00 Shenzhen Shenzhen Real estate 54.00%
combination
under the
Ltd. same control
Shenzhen
Helinhua Business
Construction 3000000.00 Shenzhen Shenzhen Real estate 90.00% combination
Management Co. under the
Ltd. same control
Shenzhen Business
Zhongtongda Construction combination
House Xiushan 2500000.00 Shenzhen Shenzhen industry 90.00% under the
Service Co. Ltd. same control
Shenzhen Business
Kangping
Industrial Co. 1000000.00 Shenzhen Shenzhen Service industry 90.00%
combination
under the
Ltd. same control
Business
Shenzhen Sports
Service Co. Ltd. 3300000.00 Shenzhen Shenzhen Service industry 100.00%
combination
under the
same control
Shenzhen Business
Teacher’s Home 1660000.00 Shenzhen Shenzhen Service industry 100.00% combination
Training Co. Ltd. under thesame control
Shenzhen Business
Education
Industrial Co. 4985610.00 Shenzhen Shenzhen Service industry 100.00%
combination
under the
Ltd. same control
Shenzhen Yufa Business
Industrial Co. 1050000.00 Shenzhen Shenzhen Service industry 80.95% combination
Ltd. under thesame control
SZPRD Fuyuantai
Development Co. 10000000.00 Shenzhen Shenzhen Real estate 100.00% Set-up
Ltd.Xiamen
Shenguomao
Industrial City 5000000.00 Xiamen Xiamen Service industry 51.00% Set-up
Smart Service
Co. Ltd.Vietnam
Shenguomao
Property USD200000.00 Vietnam Vietnam Service industry 100.00% Set-up
Management Co.Ltd.Shenzhen SZPRD
Yanzihu
Development Co. 10000000.00 Shenzhen Shenzhen Real estate 100.00% Set-up
Ltd.Shenzhen
Guangming Wuhe
Real Estate Co. 50000000.00 Shenzhen Shenzhen Real estate 100.00% Set-up
Ltd.Dongguan Wuhe 50000000.00 Dongguan Dongguan Real estate 100.00% Set-up
216ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Real Estate Co.Ltd.Shenzhen Business
Property
Management Co. 7250000.00 Shenzhen Shenzhen Real estate 100.00%
combination
under the
Ltd. same control
Business
Shenzhen Shenwu 3500000.00 Shenzhen Shenzhen Real estate 100.00% combinationElevator Co. Ltd. under the
same control
Shenzhen Business
Shenfang combination
Property Cleaning 1000000.00 Shenzhen Shenzhen Real estate 100.00% under the
Co. Ltd. same control
Shenzhen Foreign Business
Trade Property
Management Co. 5000000.00 Shenzhen Shenzhen Service industry 100.00%
combination
under the
Ltd. same control
Shenzhen
Shenfubao Business
Property 15000000.00 Shenzhen Shenzhen Real estate 100.00% combination
Development Co. under the
Ltd. same control
Shenzhen Fubao Business
Urban Resources
Management Co. 5000000.00 Shenzhen Shenzhen Service industry 60.00%
combination
under the
Ltd. same control
Shenzhen
Shenfubao Business
Hydropower 10000000.00 Shenzhen Shenzhen Real estate 100.00% combination
Municipal Service under the
Co. Ltd. same control
Shenzhen Free Business
Trade Zone
Security Service 2000000.00 Shenzhen Shenzhen Real estate 100.00%
combination
under the
Co. Ltd. same control
Shenzhen Wuhe
Urban Renewal 195000000.00 Shenzhen Shenzhen Real estate 100.00% Set-up
Co. Ltd.Yangzhou Wuhe
Real Estate Co. 50000000.00 Yangzhou Yangzhou Real estate 67.00% Set-up
Ltd.Shenzhen Tonglu
Wuhe Investment
Development Co. 10000000.00 Shenzhen Shenzhen Real estate 100.00% Set-up
Ltd.Shenzhen
International
Trade Industry 2800000.00 Shenzhen Shenzhen Real estate 55.00% Set-up
Space Service
Co. Ltd.Unit: RMB
Notes of shareholding percentage in subsidiaries different from voting percentage:
In May 2021 Shenzhen Wuhe Industry Investment Development Co. Ltd. (hereinafter referred to as "Wuhe Company") a
subsidiary of the Company acquired 35% of the equity of Shenzhen Facility Management Community Technology Co. Ltd.(hereinafter referred to as "FMC") through acquisition of equity and directional capital increase. Meanwhile according to the
agreement of the cooperation framework on equity acquisition signed by Wuhe Company and the original shareholders 16% of the
voting rights that the original shareholders hold or actually control in the equity of FMC shall be unconditionally granted to Wuhe
Company to exercise after the transaction date. There are no prerequisites for the granting of voting rights and the term of the voting
rights is not stipulated in the contract.Basis of holding half or less voting rights but still controlling the investee and holding more than half of the voting rights but not
controlling the investee:
217ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Basis of controlling significant structural entities incorporated in the scope of combination:
Basis of determining whether the Company is the agent or the mandatory:
Other notes:
(2) Significant Non-wholly-owned Subsidiary
Unit: RMB
Shareholding proportion The profit or loss Declaring dividends
Name of subsidiaries of non-controlling attributable to the non- distributed to non-
Balance of non-
interests controlling interests for controlling interests for
controlling interests at
the current period the current period the period-end
Shenzhen Rongyao Real
Estate Development Co. 31.00% -11728370.67 -7166774.26
Ltd.Yangzhou Wuhe Real
Estate Co. Ltd. 33.00% -10467489.08 5111280.10
Holding proportion of non-controlling interests in subsidiary different from voting proportion:
Other notes:
(3) The Main Financial Information of Significant Not Wholly-owned Subsidiary
Unit: RMB
Ending balance Beginning balance
Name of
subsidiaries Current
Non- Non-
current Total Current current Total Current
Non- Total Current Non- Total
assets assets assets liabilities liabilities liabilities assets
current current
assets assets liabilities liabilities liabilities
Shenzhen
Rongyao Real 61048 161894 6266725 3217495 3072349 6289844 5463417 148966 5612384 237683 5360025 5597709
Estate 31530.Development 251.74 782.29 278.38 130.56 408.94 860.24 845.59 705.83 829.61 967.25 796.86
Co. Ltd. 55
Yangzhou 12913
Wuhe Real 308658 1294446 1278957 1278957 1003117 923562. 1004041 956832 95683273
Estate Co. 59823. 3.61 406.92 679.33 679.33 568.27 28 130.55 739.09 9.09
Ltd. 31
Unit: RMB
Amount for the current period Amount for the previous period
Name of
Operating Total Cash flows Total Cash flowssubsidiaries
Revenue Net profit comprehensive from operating
Operating Net profit comprehensive from operating
income activities Revenue income activities
Shenzhen
Rongyao Real
Estate -37833453.79 -37833453.79 -535294796.10 -41751240.79 -41751240.79 -313044955.93
Development
Co. Ltd.Yangzhou Wuhe
Real Estate Co. -31719663.87 -31719663.87 -43688784.15 -2791608.54 -2791608.54 -716033.23
Ltd.Other notes:
218ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
(4) Significant restrictions on leveraging the assets and liquidating the liabilities of the business consortium
(5) Financial support or other support provided to structural entities incorporated into the scope of consolidated financial
statements
Other notes:
2. The Transaction of the Company with Its Owner's Equity Share Changing but the Company Still
Controls the Subsidiary
(1) Note to the Owner's Equity Share Changed in Subsidiary
(2) The Transaction’s Influence on the Equity of Non-controlling Interests and the Owner's Equity Attributable to the
Company as the Parent
Unit: RMB
Purchase cost/disposal consideration
-Cash
-Fair value of non-cash assets
Total purchase cost/disposal consideration
Less: Share of net assets of subsidiaries based on percentage of
equity acquired/disposed of
Difference
Of which: Adjusting capital reserve
Adjusting surplus reserve
Adjusting retained profits
Other notes:
3. Equity in Joint Ventures or Associated Enterprises
(1) Significant Joint Ventures or Associated Enterprises
Shareholding percentage (%) Accounting
treatment of the
Name Main operating Place of Business nature investment toplace registration Directly Indirectly joint venture or
associated
enterprise
Shenzhen Real
Estate Jifa Shenzhen Shenzhen WarehouseWarehousing service 25.00% 25.00% Equity method
Co. Ltd.Tian’an
International
Building
Property Shenzhen Shenzhen Propertymanagement 50.00% Equity methodManagement
Company of
Shenzhen
CSCEC
Intelligent Commercial
Parking Shenzhen Shenzhen services 10.00% Equity method
Technology Co.
219ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Ltd.Notes to holding proportion of joint venture or associated enterprise different from voting proportion:
Basis of holding less than 20% of the voting rights but has a significant impact or holding 20% or more voting rights but does not
have a significant impact:
(2) Main Financial Information of Significant Joint Ventures
Unit: RMB
Closing balance/amount of the current period Opening balance/amount of the previous period
Tian’an International Tian’an International
Shenzhen Jifa Building Property Shenzhen Jifa Building Property
Warehouse Co. Ltd. Management Company Warehouse Co. Ltd. Management Company
of Shenzhen of Shenzhen
Current assets 13949127.78 59553501.09 6110801.95 58848700.91
Of which: Cash and cash
equivalents 11574044.52 38464410.56 4923260.32 37841255.88
Non-current assets 85381409.08 42101.51 86342531.70 46757.57
Total assets 99330536.86 59595602.60 92453333.65 58895458.48
Current liabilities 3198899.85 28927454.58 2992163.07 28404537.12
Non-current liabilities 16566273.37 16415016.74
Total liabilities 3198899.85 45493727.95 2992163.07 44819553.86
Equity of non-
controlling interests
Equity attributable to
shareholders of the 96131637.01 14101874.65 89461170.58 14075904.62
Company as the parent
Net assets shares
calculated at the 48065818.51 7050937.33 44730585.29 7037952.31
shareholding proportion
Adjusted items
- Goodwill
--Unrealized profit of
intra-company
transaction
--Other
Carrying value of equity
investment to joint 48065818.51 7050937.33 44730585.29 7037952.31
ventures
Fair values of equity
investments of joint
ventures with quoted
prices
Operating Revenue 13401998.52 15353082.93 7991120.67 17348456.03
Financial expenses -17937.34 -473753.01 -10286.81 -369996.65
Income tax expense 2225102.81 9505.10 810230.79 136495.54
Net profit 6670466.43 2780.71 2427840.35 387872.11
Net profit from
discontinued operations
Other comprehensive
income
Total comprehensive
income 6670466.43 2780.71 2427840.35 387872.11
220ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Dividends received from
the joint venture in the
current period
Other notes:
(3) Main Financial Information of Significant Associated Enterprises
Unit: RMB
Closing balance/amount of the current Opening balance/amount of the previous
period period
CSCEC CSCEC
Current assets 256074109.31 235089462.02
Non-current assets 11617792.09 3014735.77
Total assets 267691901.40 238104197.79
Current liabilities 95957288.78 77308723.18
Non-current liabilities 486565.88 24777.90
Total liabilities 96443854.66 77333501.08
Equity of non-controlling interests
Equity attributable to shareholders of the
Company as the parent 171248046.74 160770696.71
Net assets shares calculated at the
shareholding proportion 17124804.67 16077069.67
Adjusted items
- Goodwill
--Unrealized profit of intra-company
transaction
--Other
Carrying value of investment to associated
enterprises 28940994.71 28012899.71
Fair value of equity investments in
associated enterprises with publicly quoted
prices
Operating Revenue 200994767.06 169285776.61
Net profit 9912150.03 6326055.81
Net profit from discontinued operations
Other comprehensive income
Total comprehensive income 9912150.03 6326055.81
Dividends received from the associates in
the current period 63120.00
Other notes:
(4) Summary Financial Information of Insignificant Joint Ventures or Associated Enterprises
Unit: RMB
221ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Closing balance/amount of the current Opening balance/amount of the previous
period period
Joint venture:
Sum calculated by shareholding ratio of
each item
Associated enterprises:
Sum calculated by shareholding ratio of
each item
Other notes:
(5) Note to the Significant Restrictions on the Ability of Joint Ventures or Associated Enterprises to
Transfer Funds to the Company
(6) The Excess Loss of Joint Ventures or Associated Enterprises
Unit: RMB
The cumulative recognized The derecognized losses (or the
Name losses in previous share of net profit) in current The accumulative unrecognized
accumulatively derecognized period losses in current period
Other notes:
(7) The Unrecognized Commitment Related to Investment to Joint Ventures
(8) Contingent Liabilities Related to Investment to Joint Ventures or Associated Enterprises
4. Significant Common Operation
Name Main operating
Proportion/Share portion
place Place of registration Business nature Directly Indirectly
Notes to holding proportion or share portion in common operation different from voting proportion:
For common operation as a single entity basis of classifying as common operation
Other notes:
5. Equity in the Structured Entity Excluded in the Scope of Consolidated Financial Statements
Notes to the structured entity excluded in the scope of consolidated financial statements:
6. Other
222ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
XI. Government Grants
1. Government Grants Recognized at the End of the Reporting Period at the Amount Receivable
□Applicable□Not applicable
Reasons for failing to receive government grants in the estimated amount at the estimated point in time
□Applicable□Not applicable
2. Liability Items Involving Government Grants
□Applicable□Not applicable
3. Government Grants Recognized as Current Profit or Loss
□Applicable □Not applicable
Unit: RMB
Accounting items Amount for the current period Amount for the previous period
Other income 7690477.21 10637742.42
Other notes:
XII. Risks Associated with Financial Instruments
1. Various Types of Risks Arising from Financial Instruments
The Company is engaged in risk management to achieve balance between risks and returns minimizing the negative effects of risks
on its operation performance and maximizing the interests of its shareholders and other equity investors. Based on that risk
management goal the fundamental strategy of its risk management is to identify and analyze various risks facing the Company
establish an appropriate risk bottom line carry out risk management and monitor various risks in a timely and reliable manner to
control them within a restricted scope.The Company faces various risks related to financial instruments in its routine activities mainly including credit risk liquidity risk
market risk. The management has reviewed and approved the policies of managing those risks which are summarized as follows:
i. Risks from Financial Instruments
1. Classification of Financial Instruments
(1) The Carrying Value of Financial Assets on the Balance Sheet Date
* 1 December 2023
Financial assets Financial assets at fair value
Item measured at Financial assets at fair valuethrough profit or loss and changes included in other Totalamortized cost comprehensive income
Monetary capital 2748798476.72 2748798476.72
Accounts receivable 506088217.25 506088217.25
Other receivables 624394372.82 624394372.82
Other equity
instrument 636926.20 636926.20
investments
* 31 December 2022
Financial assets Financial assets at fair value
Item measured at Financial assets at fair value and changes included in other Total
amortized cost through profit or loss comprehensive income
223ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Financial assets
Item measured at Financial assets at fair value
Financial assets at fair value
through profit or loss and changes included in other Totalamortized cost comprehensive income
Monetary capital 1517528893.83 1517528893.83
Accounts receivable 419933915.30 419933915.30
Other receivables 639903523.33 639903523.33
Long-term
receivables 22651454.07 22651454.07
Other equity
instrument 887838.64 887838.64
investments
2. The Carrying Value of Financial Liabilities on the Balance Sheet Date
* 1 December 2023
Item Financial liabilities at fairvalue through profit or loss Other financial liabilities Total
Short-term loan 230915000.00 230915000.00
Accounts payable 662869059.59 662869059.59
Other payables 1217303294.24 1217303294.24
Current portion of non-current
liabilities 3092324853.07 3092324853.07
Long-term borrowings 1399889274.47 1399889274.47
Lease liabilities 10571092.27 10571092.27
Long-term accounts payable 400105655.56 400105655.56
* 31 December 2022
Item Financial liabilities at fair valuethrough profit or loss Other financial liabilities Total
Short-term loan
Accounts payable 608283388.52 608283388.52
Other payables 1515085832.45 1515085832.45
Current portion of non-
current liabilities 218858766.82 218858766.82
Long-term borrowings 3618782344.00 3618782344.00
Lease liabilities 77963283.55 77963283.55
2. Credit Risk
Credit risk means the risk of financial losses incurred to the other party when one party of a financial instrument is unable to fulfill its
obligations.
1. Credit Risk Management Practice
(1) Credit Risk Evaluation Method
224ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
On each balance sheet date the Company shall evaluate whether the credit risk of relevant financial instruments has increased
significantly since the initial recognition. After determining whether the credit risk has increased significantly since the initial
recognition the Company shall consider obtaining reasonable and reliable information without paying unnecessary extra costs or
efforts including qualitative and quantitative analysis based on historical data external credit risk rating and forward-looking
information. On the basis of the single financial instrument or combination of financial instruments with similar credit risk
characteristics the Company compares the risk of default of financial instruments on the balance sheet date with the risk of default
on the initial recognition date to determine the change of default risk of financial instruments during their expected duration.When one or more of the following quantitative and qualitative criteria prevails the Company shall believe the credit risk of financial
instruments has increased significantly:
1) For the quantitative standard it can be mainly analyzed from the probability of default for the remaining duration on the balance
sheet date rises by more than a certain proportion compared with the initial confirmation.
2) For the qualitative standard it can be mainly analyzed from the major adverse changes in the debtor's operation or financial
situation changes in existing or expected technology market economy or legal environment which shall have major adverse impacts
on the debtor’s repayment ability of the Company etc.
3) The upper limit is that the debtor’s contract payment (including principal and interest) is overdue for more than 90 days.
(2) Definition of Default and Credit Impairment-Assets
When a financial instrument meets one or more of the following conditions the Company shall define the financial asset as having
defaulted and its criteria are consistent with the definition of having incurred credit impairment:
1) Quantitative Standard
The debtor fails to make the payment after the contract payment date for more than 90 days;
2) Qualitative criteria
a. The debtor has major financial difficulties;
b. The debtor violates the binding provisions on the debtor in the contract;
c. The debtor is likely to go bankrupt or carry out other financial restructurings;
d. The creditor shall give the debtor concessions that will not be made in any other circumstances due to the economic or contractual
considerations related to the debtor’s financial difficulties.
2. Measurement of Expected Credit Loss
The key parameters for measuring expected credit loss included default probability loss given default and exposure at default. The
Company considers the quantitative analysis and forward-looking information of historical statistical data (such as counterparty
rating guarantee method collateral type repayment method etc.) to establish exposure models of default probability loss given
default and default risk.
3. Refer to Note VII-1 VII-2 VII-7 for Details of the Reconciliation Statements of Beginning Balance and Ending Balance of
Financial Instrument Loss Provision.
4. Credit Risk Exposure and Credit Risk Concentration
The Company’s credit risk mainly comes from monetary assets and accounts receivable. To control the aforementioned relevant risks
the Company has adopted the following measures.
(1) Monetary Assets
The Company places its monetary assets with financial institutions of high credit ratings. Thus its credit risk is low.
(2)Accounts Receivable
The Company conducts credit assessments on the customers trading in the mode of credit on a regular basis. Based on the credit
assessment result the Company chooses to trade with recognized customers with good credit and monitor the balance of the accounts
receivable from them to ensure that the Company will not face any significant bad debt risk.Due to the Company merely trades with the authorized third party with good credit the guarantee is not required. Credit risk
concentration is managed in accordance with the customers. As of 31 December 2021 there were certain credit concentration risks in
the Company and 59.45% of the accounts receivable of the Company (54.09% on 31 December 2022) came from the top 5
customers by balance. The Company hasn’t held any guarantee or other credit enhancement for balance of accounts receivable.The maximum credit risk exposure the Company undertook shall be the carrying value of each financial asset on balance sheet.
3. Liquidity Risk
225ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Liquidity risk refers to the risk of fund shortage occurring when the Company fulfills the settlement obligation in the mode of cash
delivery or other financial assets. Liquidity risk may originate from the failure to sell financial assets at fair value as soon as possible;
or from the other party’s failure to pay off its contractual debts; or from the earlier maturity of debts; or from the failure to generate
the expected cash flow.To control the risk the Company comprehensively adopts bank loans as financing approach appropriately combines long-term and
short-term financing modes and optimizes the financing structure to maintain the balance between financing sustainability and
flexibility. The Company has obtained the line of credit from a number of commercial banks to satisfy its operation fund needs and
capital expenditure.The analysis of the financial liabilities based on the maturity period of the undiscounted cash flow is as follows:
31 December 2023
Item
Carrying value Undiscounted contract More than threeamount Within 1 year 1-3 years years
Banking borrowings 1630804274.47 1886101350.83 379121985.22 709659943.62 797319421.99
Accounts payable 662869059.59 662869059.59 662869059.59
Other payables 1217303294.25 1217303294.25 1205100618.21 12202676.04
Current portion of
other non-current 3092324853.07 3111187663.28 3111187663.28
liabilities
Lease liabilities 10571092.27 15904640.37 7730396.15 8174244.22
Long-term accounts
payable 400105655.56 480600833.30 18293137.50 41277444.45 421030251.35
Total 7013978229.21 7373966841.62 5376572463.80 758667784.22 1238726593.60
Continued:
December 31 2022
Item
Carrying value Undiscountedcontract amount Within 1 year 1-3 years
More than three
years
Banking borrowings 3618782344.00 3998835011.38 190669039.72 3648297102.30 159868869.36
Accounts payable 608283388.52 608283388.52 608283388.52
Other payables 1515085832.45 1515085832.45 1502883156.41 12202676.04
Current portion of
other non-current 218858766.82 223385608.63 223385608.63
liabilities
Lease liabilities 77963283.55 92467880.37 45844010.07 46623870.30
Total 6038973615.34 6438057721.35 2525221193.28 3694141112.37 218695415.70
4. Market Risk
Market risk refers to the risk of fluctuations in the fair value or future cash flows of financial instruments arising from changes in
market prices. Market risk mainly includes interest rate risk and foreign exchange risk.
(1) 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-bearing financial instruments with fixed interest rates may bring the fair value interest rate risk to the
Company while those with floating interest rate may bring the cash flow interest rate risk to the Company. The Company will
determine the proportion between the financial instruments with fixed interest rate and those with floating interest rate in
combination with market environment and maintain an appropriate portfolio of financial instruments through regular review and
226ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
monitoring. The interest rate risk of cash flows facing the Company is mainly related to the bank loans calculated by floating interest
rate of the Company.As of 30 June 2023 under the assumption of other fixed variables with 50 basis points changed in interest rate the bank loan of
RMB4470302598.47 (RMB3809915668.00 on 31 December 2022) calculated at floating rate would not result in significant
influence on total profit and shareholders’ equity of the Company.
2. Foreign Exchange Risk
Foreign exchange risk refers to the risk that may lead to the changes of fair value of financial instruments or future cash flows due to
fluctuation in exchange rate. The risk of changes of exchange rate facing the Company is mainly related to foreign currency
monetary assets and liabilities of the Company. The Company operates in mainland China and the main activities are recorded by
RMB. Thus the foreign exchange market risk undertaken is insignificant for the Company.For details of the Company's foreign currency monetary assets and liabilities at the end of the Current Period please refer to Note
VII-77 in the Current Report.
2. Hedge
(1) The Company Carries out Hedging Business for Risk Management
□Applicable□Not applicable
(2) The Company Conducts Eligible Hedging Operations and Applies Hedge Accounting
Unit: RMB
Cumulative fair value
Carrying value related to hedge adjustment of the Hedge effectiveness and Impact of hedge
Item hedged items and hedged item included in hedge ineffectiveness accounting on the
hedging instruments the recognized carrying partial sources Company's financial
value of the hedged item statements
Types of hedge risk
Types of hedge
Other notes:
(3) The Company Conducts Hedging Operations for Risk Management Expects to Achieve Its Risk Management Objectives
but Does Not Apply Hedge Accounting
□Applicable□Not applicable
3. Financial Assets
(1) Classification of Transfer Methods
□Applicable□Not applicable
(2) Financial Assets Derecognized due to Transfer
□Applicable□Not applicable
(3) Continued Involvement in the Transfer of Assets Financial Assets
□Applicable□Not applicable
Other notes:
XIII. The Disclosure of Fair Value
1. Ending Fair Value of Assets and Liabilities at Fair Value
Unit: RMB
Closing fair value
Item Fair value measurement Fair value measurement Fair value measurement
items at level 1 items at level 2 items at level 3 Total
227ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
I. Consistent Fair Value
Measurement -- -- -- --
(III) Other equity
instrument investment 636926.20 636926.20
The total amount of
assets consistently 636926.20 636926.20
measured at fair value
II. Inconsistent Fair
Value Measurement -- -- -- --
2. Basis for Determining the Market Price of Continuous and Non-continuous Level 1 Fair Value
Measurement Items
3. Continuous and Non-continuous Level 2 Fair Value Measurement Items Valuation Techniques Used and
The Qualitative and Quantitative Information of Important Parameters
4. Continuous and Non-continuous Level 3 Fair Value Measurement Items Valuation Techniques Used and
The Qualitative and Quantitative Information of Important Parameters
5. Continuous and Non-continuous Level 3 Fair Value Measurement Items Information On The
Adjustment Between The Opening and Closing Carrying Value and Sensitivity Analysis of Unobservable
Parameters
6. Explain the Reason for Conversion and the Governing Policy when the Conversion Happens if
Conversion Happens among Consistent Fair Value Measurement Items at Different Levels
7. Changes in the Valuation Technique in the Current Period and the Reason for Such Changes
8. The Fair Value of Financial Assets and Financial Liabilities not Measured at Fair Value
9. Others
XIV. Related Party and Related-party Transactions
1. Information Related to the Company as the Parent of the Company
Proportion of share Proportion of voting
Name of the held by the rights owned by the
Company as the Place of registration Business nature Registered capital Company as the Company as the
parent parent against the parent against the
Company (%) Company (%)
Shenzhen Limited liability
Investment Holdings Shenzhen company (solely- 32359000000.00 56.96% 56.96%
Co. Ltd. owned by the state)
Notes: Information on the Company as the parent
(1) The parent company of the Company is Shenzhen Investment Holdings Co. Ltd. (hereinafter referred to as “SIHC”) a newly-
established and organized state-owned capital investment company based on the original three state-owned assets management
companies in October 2004 and its main function is to manage the partial municipal state-owned companies according to the
228ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
authorization of Municipal SASAC. As a government department Shenzhen State-owned Assets Supervision and Administration
Bureau manages Shenzhen Investment Holdings Co. Ltd. on behalf of People’s Government of Shenzhen Municipality.
(2) In 2021 SIHC the controlling shareholder of the Company transferred 38037890 ordinary shares of the Company in unlimited
circulation (representing 6.382% of the total share capital of the Company) held by SIHC to Shenzhen State-owned Equity
Management Co. Ltd. for free to replenish the social security funds. Shenzhen State-owned Equity Management Co. Ltd. is a newly
established wholly-owned subsidiary of SIHC to manage the transferred state-owned equity in a special account. After the
registration of the free transfer SIHC held 301414637 shares of the Company accounting for 50.575% of the total share capital of
the Company and Shenzhen State-owned Equity Management Co. Ltd. held 38037890 shares of the Company accounting for
6.382% of the total share capital of the Company.
The final controller of the Company is Shenzhen State-owned Assets Supervision and Administration Committee of Shenzhen
Government.Other notes:
2. Subsidiaries of the Company
Please refer to Note X-1 for details on the Company’s subsidiaries.
3. Information on the Joint Ventures and Associated Enterprises of the Company
Please refer to Note X-2 for details on the Company’s joint ventures and associated enterprises.Information on other joint venture or associated enterprise of occurring related-party transactions with the Company in Current
Period or forming balance due to related-party transactions made in previous period:
Name Relationship with the Company
Other notes:
4. Information on Other Related Parties
Name of other related party Relationship with the Company
Shenzhen Xinhai Holding Co. Ltd. The Company as the parent of Xinhai Rongyao of subsidiaryRongyao Real Estate by non-controlling interests
Shenzhen Xinhai Rongyao Real Estate Development Co. Ltd. Subsidiary Rongyao Real Estate by non-controlling interests
Yangzhou Lvfa Real Estate Co. Ltd. Subsidiary Yangzhou Wuhe by non-controlling interests
Shenzhen Wufang Ceramics Industrial Co. Ltd. Associated enterprise of the Company
Shenzhen Real Estate Jifa Warehousing Co. Ltd. Joint venture of the Company
Tian’an International Building Property Management Company
of Shenzhen Joint venture of the Company
Guoren P&C Subsidiary of the Company as the parent of the Company
Shenzhen General Institute of Architectural Design and Research Wholly-owned subsidiary of the Company as the parent of the
Co. Ltd. Company
Shenzhen Water Planning and Design Institute Co. Ltd. Subsidiary of the Company as the parent of the Company
Shenzhen People's Congress Cadre Training Center Wholly-owned subsidiary of the Company as the parent of theCompany
Shenzhen Shenfubao (Group) Co. Ltd. Wholly-owned subsidiary of the Company as the parent of theCompany
Shenzhen Guarantee Group Co. Ltd. Subsidiary of the Company as the parent of the Company
China Shenzhen Foreign Trade (Group) Corp. Ltd. Wholly-owned subsidiary of the Company as the parent of theCompany
Shenzhen Bay Technology Development Co. Ltd. Wholly-owned subsidiary of the Company as the parent of theCompany
ShenZhen Special Economic Zone Real Estate & Properties
(Group) Co. Ltd. and its consolidated subsidiaries except where Subsidiary of the Company as the parent of the Company
the context otherwise requires
Shenzhen Shentou Property Development Co. Ltd. Wholly-owned subsidiary of the Company as the parent of theCompany
Shenzhen Convention & Exhibition Center Management Co. Wholly-owned subsidiary of the Company as the parent of the
229ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Ltd. Company
Shenzhen Shenzhen Hong Kong Science and Technology
Innovation Cooperation Zone Development Co. Ltd. Subsidiary of the Company as the parent of the Company
Shenzhen Tsinghua University Research Institute Subsidiary of the Company as the parent of the Company
Shenzhen Bay Area Urban Construction and Development Co. Wholly-owned subsidiary of the Company as the parent of the
Ltd. Company
Shenzhen Infinova Limited Subsidiary of the Company as the parent of the Company
Shenzhen Construction Development (Group) Company Subsidiary of the Company as the parent of the Company
Shenzhen Hi-tech Zone Investment Development Group Co.Ltd. Subsidiary of the Company as the parent of the Company
Shenzhen Sports Center Operation Management Co. Ltd. Wholly-owned subsidiary of the Company as the parent of theCompany
Shenzhen Xiangmihu International Exchange Center Wholly-owned subsidiary of the Company as the parent of the
Development Co. Ltd. Company
Shenzhen Environmental Protection Technology Group Co. Ltd. Subsidiary of the Company as the parent of the Company
Shenzhen Tianjun Industrial Co. Ltd. Parent company's sub-subsidiary
Shenzhen Cultural Business Development Co. Ltd. Wholly-owned sub-subsidiary of the Company as the parent ofthe Company
Shenzhen Meibainian Garment Co. Ltd. Wholly-owned sub-subsidiary of the Company as the parent ofthe Company
Shenzhen Guohui Industry Co. Ltd. Parent company's sub-subsidiary
Shen ZHEN Light Industrial Products IMP.& EXP. Co. Ltd. Wholly-owned sub-subsidiary of the Company as the parent ofthe Company
Shenzhen Talent Recruitment International Co. Ltd. Wholly-owned sub-subsidiary of the Company as the parent ofthe Company
Shenzhen Shendan Zengxin Financing Guarantee Co. Ltd. Parent company's sub-subsidiary
Shenzhen Yitong Digital Technology Innovation Development
Co. Ltd. Parent company's sub-subsidiary
Shenzhen Foreign Service Group Co. Ltd. Wholly-owned sub-subsidiary of the Company as the parent ofthe Company
Shenzhen SDG Service Co. Ltd. Parent company's sub-subsidiary
Shenzhen Investment Building Hotel Co. Ltd. Wholly-owned sub-subsidiary of the Company as the parent ofthe Company
Shenzhen Infinova Smart Park Technology Co. Ltd. Wholly-owned sub-subsidiary of the Company as the parent ofthe Company
Shenzhen Shantou Special Cooperation Zone Branch of Wholly-owned sub-subsidiary of the Company as the parent of
Shenzhen Water Planning and Design Institute Co. Ltd. the Company
China Kunpeng Industry Source Innovation Center (Shenzhen) Wholly-owned sub-subsidiary of the Company as the parent of
Co. Ltd. the Company
Shenzhen Special Zone Literature Magazine Co. Ltd. Wholly-owned sub-subsidiary of the Company as the parent ofthe Company
Shenzhen Shenyue United Investment Co. Ltd. Wholly-owned sub-subsidiary of the Company as the parent ofthe Company
Shenzhen Shenzhen Hong Kong Science and Technology
Innovation Park Operation Development Co. Ltd. Parent company's sub-subsidiary
Shenzhen Chuangke Development Co. Ltd. Parent company's sub-subsidiary
Shenzhen Hi-tech Zone Development Construction Co. Ltd. Wholly-owned sub-subsidiary of the Company as the parent ofthe Company
Shenzhen Investment Holdings Development Co. Ltd. Parent company's sub-subsidiary
Shenzhen Bay (Baoding) Innovation Development Co. Ltd. Wholly-owned sub-subsidiary of the Company as the parent ofthe Company
Shenzhen Bay Area International Hotel Co. Ltd. Wholly-owned sub-subsidiary of the Company as the parent ofthe Company
Shenzhen SME Venture Capital Co. Ltd. Wholly-owned sub-subsidiary of the Company as the parent ofthe Company
Shenzhen Shenfubao Eastern Investment Development Co. Ltd. Wholly-owned sub-subsidiary of the Company as the parent ofthe Company
Shenzhen Fubao Industrial Park Operation Co. Ltd. Wholly-owned sub-subsidiary of the Company as the parent ofthe Company
Shenzhen Large Industrial Zone (Shenzhen Export Processing Wholly-owned sub-subsidiary of the Company as the parent of
Zone) Development Management Group Co. Ltd. the Company
230ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Shenzhen Shenfubao (Group) Tianjin Investment Development Wholly-owned sub-subsidiary of the Company as the parent of
Co. Ltd. the Company
Shenzhen Shenfubao (Group) Tianjin Industrial Development Wholly-owned sub-subsidiary of the Company as the parent of
Co. Ltd. the Company
Shenzhen Urban Construction Mingyuan Industrial Co. Ltd. Parent company's sub-subsidiary
Shenzhen Environment Engineering Technology Center Co. Ltd. Parent company's sub-subsidiary
Shenzhen Transportation Station Development Co. Ltd. Wholly-owned sub-subsidiary of the Company as the parent ofthe Company
Shenzhen Free Trade Zone Life Service Co. Ltd. Parent company's sub-subsidiary
Shenzhen Infinova Renyong Information Co. Ltd. Wholly-owned sub-subsidiary of the Company as the parent ofthe Company
Shenzhen Rule of Law Training Center Wholly-owned sub-subsidiary of the Company as the parent ofthe Company
Shenzhen South Certification Co. Ltd. Parent company's sub-subsidiary
Shenzhen Xingye Logistics Co. Ltd. Parent company's sub-subsidiary
Shenzhen Bay Wanli Hotel Branch of Shenzhen Wuzhou Hotel Wholly-owned sub-subsidiary of the Company as the parent of
Management Co. Ltd. the Company
Shenzhen Bay Wanyi Hotel Branch of Shenzhen Wuzhou Hotel Wholly-owned sub-subsidiary of the Company as the parent of
Management Co. Ltd. the Company
Shenzhen Xingye Xingfa Clothing Manufacturing Co. Ltd. Wholly-owned sub-subsidiary of the Company as the parent ofthe Company
Hebei Shenbao Investment Development Co. Ltd. Parent company's sub-subsidiary
Shenzhen Total Logistics Service Co. Ltd. Parent company's sub-subsidiary
Shenzhen Tianjun Biotechnology Development Co. Ltd. Parent company's sub-subsidiary
Shenzhen Environmental Protection Technology Group Co. Ltd. Subsidiary of the Company as the parent of the Company
Shenzhen Environmental Engineering Science and Technology
Parent company's sub-subsidiary
Center Co. Ltd.Shenzhen City Construction Industrial Park Development Co.Parent company's sub-subsidiary
Ltd
Chengdu Zunxi Land Co. Ltd. Parent company's sub-subsidiary
Shenzhen Chenglong Real Estate Development Co. Ltd. Parent company's sub-subsidiary
Shenzhen Shenzhen Shantou Special Cooperation Zone SIHC Wholly-owned subsidiary of the Company as the parent of the
Investment Development Co. Ltd. Company
Dongguan SIHC Investment Development Co. Ltd. Parent company's sub-subsidiary
Shenzhen Binjiang Industry Co. Ltd. Parent company's sub-subsidiary
Other notes:
5. List of Related-party Transactions
(1) Information on Acquisition of Goods and Reception of Labor Service
Information on acquisition of goods and reception of labor service
Unit: RMB
Content of the
Related parties related-party Amount for the The approval trade Whether exceed Amount for the
transaction current period credit trade credit or not previous period
Guoren P&C Insurance 4005407.26 2582000.00 Yes 3296379.71
Shenzhen Guarantee
Group Co. Ltd. Guarantee fee 26548.11
ShenZhen Special
Economic Zone
Real Estate & Management service
Properties (Group) fee 4731334.42 4026979.11
Co. Ltd. and its
consolidated
231ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
subsidiaries except
where the context
otherwise requires
Shen ZHEN Light
Industrial Products
IMP.& EXP. Co. Catering service 50477.89
Ltd.Shenzhen People's
Congress Cadre Training fee 1780.00
Training Center
Shenzhen Foreign
Service Group Co. Outsourcing service 9312805.11
Ltd. charges
Shenzhen Rule of
Law Training Center Training fee 185019.48
Shenzhen Guohui
Industry Co. Ltd. Catering service 45600.00
Shenzhen General
Institute of
Architectural Design Project architectural 8940492.75 8161599.83
and Research Co. design service
Ltd.Shenzhen
Meibainian Garment Apparel 402743.64
Co. Ltd. procurement
Shenzhen South
Certification Co. Certification fees 24528.30
Ltd.Shenzhen Shendan
Zengxin Financing Guarantee fee 793950.00
Guarantee Co. Ltd.Shenzhen
Shenfubao (Group) Catering service 200535.00 210975.00
Co. Ltd.Shenzhen Water
Planning and Design Consultant service
Institute Co. Ltd. expense
13331.00113320.00
Shenzhen SDG
Service Co. Ltd. Property service fee 294540.95 465715.62
Shenzhen Cultural
Business
Development Co. Activity fees 175633.75
Ltd.Shenzhen Yitong
Digital Technology
Innovation Catering service 8982.00
Development Co.Ltd.Shenzhen Tianjun Demolition
Industrial Co. Ltd. compensation 27000000.00
Shenzhen Tianjun Plant maintenance
Industrial Co. Ltd. services 56613.20
Shenzhen Bay
Technology Management service
Development Co. fee 62480975.10 81600000.00 No 86518273.32
Ltd.Shenzhen Infinova
Renyong Intelligent
Information Co. engineering expense 384103.84
Ltd.China Shenzhen
Foreign Trade Management servicefee 305550.31(Group) Corp. Ltd.Shenzhen Tianjun
Plant maintenance
Biotechnology 107161.34
services
Development Co.
232ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Ltd.Shenzhen
Environmental Fees for
Protection environmental 385580.19
Technology Group services
Co. Ltd.Shenzhen
Environmental Fees for
Engineering Science environmental 111005.66
and Technology services
Center Co. Ltd.Information of sales of goods and provision of labor service
Unit: RMB
Related parties Content of the related-partytransaction Amount for the current period Amount for the previous period
Guoren P&C Property service fee 347629.57 365485.39
Hebei Shenbao Investment
Development Co. Ltd. Project payment 26970736.12 20874664.05
Hebei Shenbao Investment
Development Co. Ltd. Property service fee 13195908.87 10585122.24
China Kunpeng Industry
Source Innovation Center Property service fee 1381929.74
(Shenzhen) Co. Ltd.Shenyue United Investment
Co. Ltd. Property service fee 2900927.45 2429042.80
Shenzhen Chuangke
Development Co. Ltd. Property service fee 1516908.38
Shenzhen Guarantee Group
Co. Ltd. Property service fee 4173239.39 4347773.48
Shenzhen Hi-tech Zone
Development Construction Co. Property service fee 2391764.60 1844495.70
Ltd.Shenzhen Convention &
Exhibition Center Management Property service fee 8741565.84 6587040.80
Co. Ltd.ShenZhen Special Economic
Zone Real Estate & Properties
(Group) Co. Ltd. and its
consolidated subsidiaries Property service fee 5809905.47 12696424.71
except where the context
otherwise requires
Shenzhen Talent Recruitment
International Co. Ltd. Property service fee 444280.42
Shenzhen Tsinghua University
Research Institute Property service fee 1376718.19 351203.22
Shenzhen Total Logistics
Service Co. Ltd. Property service fee 5907491.61 2500524.01
Shenzhen Shenzhen Hong
Kong Science and Technology
Innovation Park Operation Property service fee 3153538.10
Development Co. Ltd.Shenzhen Shenzhen Hong
Kong Science and Technology
Innovation Cooperation Zone Property service fee 2352378.93 1707998.32
Development Co. Ltd.Shenzhen Urban Construction
Mingyuan Industrial Co. Ltd. Project payment 564220.20
Shenzhen Construction
Development (Group) Property service fee 136971.70
Company
Shenzhen Large Industrial Zone
(Shenzhen Export Processing Project payment 263350.35 4124594.71
233ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Zone) Development
Management Group Co. Ltd.Shenzhen Large Industrial Zone
(Shenzhen Export Processing
Zone) Development Property service fee 76628.67 81796.64
Management Group Co. Ltd.Shenzhen Fubao Industrial Park
Operation Co. Ltd. Project payment 209505.25 255834.10
Shenzhen Fubao Industrial Park
Operation Co. Ltd. Property service fee 140690.29 98543.56
Shenzhen Hi-tech Zone
Investment Development Group Property service fee 47172.26
Co. Ltd.Shenzhen Environmental
Protection Technology Group Project payment 90016.79 212270.67
Co. Ltd.Shenzhen Environmental
Protection Technology Group Property service fee 5857237.41 6269868.04
Co. Ltd.Shenzhen South Certification
Co. Ltd. Property service fee 74213.21
Shenzhen Shenfubao (Group)
Tianjin Industrial Development Property service fee 1703980.95 1095907.44
Co. Ltd.Shenzhen Shenfubao (Group)
Tianjin Industrial Development Project payment 46550.75
Co. Ltd.Shenzhen Shenfubao (Group)
Tianjin Investment Property service fee 7628802.17 8068487.11
Development Co. Ltd.Shenzhen Shenfubao (Group)
Co. Ltd. Project payment 1328615.05 1330275.23
Shenzhen Shenfubao (Group)
Co. Ltd. Property service fee 4558105.71 4785217.03
Shenzhen Shenfubao (Group)
Co. Ltd. Funding occupancy expense -233337.05
Shenzhen Shenfubao Eastern
Investment Development Co. Project payment 67252.15
Ltd.Shenzhen Shenfubao Eastern
Investment Development Co. Property service fee 483048.37 170701.27
Ltd.Shenzhen Shentou Property
Development Co. Ltd. Supervision service fee 11320.75
Shenzhen Shantou Special
Cooperation Zone Branch of
Shenzhen Water Planning and Property service fee 21247.49 22050.00
Design Institute Co. Ltd.Shenzhen Special Zone
Literature Magazine Co. Ltd. Property service fee 51384.96
Shenzhen Sports Center
Operation Management Co. Property service fee 4806978.01 687914.48
Ltd.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 payment 186843.22 7209951.08
Shenzhen Investment Holdings
Co. Ltd. Commission management fee 1886792.46
Shenzhen Investment Holdings
Co. Ltd. Property service fee 8643987.73 7584483.75
Shenzhen Investment Holdings
Co. Ltd. Funding occupancy expense 174206.14
Shenzhen Bay Area Property service fee 5432881.86 75100961.12
234ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
International Hotel Co. Ltd.Shenzhen Cultural Business
Development Co. Ltd. Property service fee 227088.46
Shenzhen Bay Wanli Hotel
Branch of Shenzhen Wuzhou Property service fee 338650.32 360707.44
Hotel Management Co. Ltd.Shenzhen Bay Wanyi Hotel
Branch of Shenzhen Wuzhou Property service fee 220010.13 235915.67
Hotel Management Co. Ltd.Shenzhen Xingye Logistics
Co. Ltd. Property service fee 11009.18
Shenzhen SME Venture Capital
Co. Ltd. Property service fee 872990.19
Shenzhen Bay (Baoding)
Innovation Development Co. Property service fee 579370.16 354142.48
Ltd.Shenzhen Bay Technology
Development Co. Ltd. Property service fee 78923867.12 54562406.82
Shenzhen Bay Area Urban
Construction and Development Project payment 686767.33
Co. Ltd.Shenzhen Bay Area Urban
Construction and Development Property service fee 2525782.31 2977659.03
Co. Ltd.Shenzhen Xiangmihu
International Exchange Center Project payment 537490.97 1419537.05
Development Co. Ltd.Shenzhen Xiangmihu
International Exchange Center Property service fee 3458208.00 2423260.33
Development Co. Ltd.Shenzhen Xingye Xingfa
Clothing Manufacturing Co. Property service fee 2832334.90
Ltd.Shenzhen Infinova Limited Property service fee 463319.77 289916.74
Shenzhen Infinova Smart Park
Technology Co. Ltd. Consultant service expense 1859676.00 512000.00
China Shenzhen Foreign Trade
(Group) Corp. Ltd. Property service fee 2457982.89 2763006.30
China Shenzhen Foreign Trade
(Group) Corp. Ltd. Supervision service fee 424528.30 618867.93
Shenzhen City Construction
Industrial Park Development Property service fee 391346.42
Co. Ltd.Chengdu Zunxi Land Co. Ltd. Property service fee 1152459.02
Shenzhen Chenglong Real
Property service fee 395685.75
Estate Development Co. Ltd.Shenzhen Shenzhen Shantou
Special Cooperation Zone
Property service fee 508184.64
SIHC Investment Development
Co. Ltd.Dongguan SIHC Investment
Property service fee 1784025.19
Development Co. Ltd.SIHC and its subsidiaries Catering Services 197755.66
Notes to acquisition of goods and reception of labor service
In 2023 the catering service business with SIHC and a number of its subsidiaries was presented on a consolidated basis under the
caliber of " SIHC and its subsidiaries" due to the large number of parties involved and the small amount of transactions with a single
related party which did not meet the criteria for separate disclosure.
(2) Information on Related-party Trusteeship/Contract
Lists of trusteeship/contract of the Company:
Unit: RMB
235ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Name of the Name of the
Income
entruster/contractee entrustee/ Type Start date Due date Pricing basis
recognized in
contractor this CurrentPeriod
Shenzhen Shentou ShenZhen
Property Properties &
Development Co. Resources
Investment 6 November 5 November
Development property 2019 2025
Market pricing 61640558.21
Ltd. (Group) Ltd.Shenzhen
Shenzhen Shenfubao
Shenfubao (Group) Property Real Estateengineering 1 January 2023
31 December
2023 Market pricing 1320754.72Co. Ltd. Development
Co. Ltd.Shenzhen
Shenzhen Fubao Shenfubao Property
Industrial Park Property maintenance 1 January 2023 31 December2023 Market pricing 27192.08Operation Co. Ltd. Development project
Co. Ltd.Shenzhen Shenzhen Free
Shenfubao (Group) Trade Zone 31 December
Co. Ltd. Security Service
Property 1 January 2023 2023 Market pricing 1420000.00
Co. Ltd.Shenzhen
Shenzhen Shenfubao
Shenfubao (Group) Hydropower Property 1 January 2023 31 December2023 Market pricing 2440695.63Co. Ltd. Municipal
Service Co. Ltd.Notes:
Lists of entrust/contractee
Unit: RMB
Charge
Name of the Name of the
entruster/contractee entrustee/ Type Start date Due date Pricing basis
recognized in
contractor this currentperiod
Notes:
(3) Information on Related-party Lease
The Company was lessor:
Unit: RMB
Name of lessee Category of leased assets The lease income confirmed in The lease income confirmed inthe current period the previous period
Shenzhen Bay Wanyi Hotel
Branch of Shenzhen Wuzhou Investment property 1265195.37 1369729.39
Hotel Management Co. Ltd.Shenzhen Bay Wanli Hotel
Branch of Shenzhen Wuzhou Investment property 1665257.39 1891531.05
Hotel Management Co. Ltd.The Company was lessee:
Unit: RMB
Rental expense of Variable lease
Name of Category of simplified short-term payments that are not Interest expense on
lessor leased assets leases and low-value covered in the Rent payable lease liabilities borne Added right-of-use assets
asset leases (if applicable) measurement of thelease liabilities (if
236ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
applicable)
Amount for Amount Amount Amount Amount Amount Amount
the current for the for the for the
Amount for for the for the for the Amount for Amount for
period previous current previous
the current
period previous current previous
the current the previous
period period period period period period period period
Shenzhen
Shentou Investment 796404.0 139419.2Property
Development property
614554.40
03
Co. Ltd.Shenzhen
Investment
Building Investment
Hotel Co. property
820296.1266547.40
Ltd.Shenzhen Hi-
tech Zone 104160.0
Development Investmentproperty 22302.40 519166.28 111132.00 4363.33 8533.45Construction 0
Co. Ltd.Shenzhen
Large
Industrial
Zone
(Shenzhen
Export Investment
Processing property 11256.87 3690.77
Zone)
Development
Management
Group Co.Ltd.ShenZhen
Special
Economic
Zone Real
Estate &
Properties
(Group) Co. Investment 1782328.1
Ltd. and its property 41333.32 640523.85 702000.00 55000.00 81134.66 8020.54 0
consolidated
subsidiaries
except where
the context
otherwise
requires
Shenzhen
Shenfubao Investment 1204267.5
(Group) Co. property 231660.00 28809.46 7
Ltd.Shenzhen -
Investment Investment 3482245. 192376.3 153717.8 7825665.7
Holdings Co. property 591394.63 625825.14 324499.11 1814518.609 4 5 2
Ltd. 9
Shenzhen
Bay 1119654.3 1132586.Technology Investment
Development property 6 62
Co. Ltd.Shenzhen
Binjiang Investment
41600.00
Industry Co. property
Ltd.Notes:
(4) Information on Related-party Guarantee
The Company was guarantor:
Unit: RMB
Secured party Amount of guarantee Start date End date Execution accomplishedor not
237ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
The Company was secured party
Unit: RMB
Guarantor: Amount of guarantee Start date End date Execution accomplishedor not
Guoren P&C 82093413.89 26 June 2022 30April 2024 No
Shenzhen Shendan
Zengxin Financing 16750000.00 29 March 2022 28 March 2025 No
Guarantee Co. Ltd.Shenzhen Shendan
Zengxin Financing 36850000.00 29 March 2022 28 March 2026 No
Guarantee Co. Ltd.Shenzhen Shendan
Zengxin Financing 13400000.00 29 March 2022 28 March 2027 No
Guarantee Co. Ltd.Shenzhen Guarantee
Group Co. Ltd. 1684498.43 December 29 2023 29 December 2024 No
Shenzhen Guarantee
Group Co. Ltd. 2895117.51 1 May 2022 1 May 2023 Yes
Notes:
(5) Information on Inter-bank Lending of Capital of Related Parties
Unit: RMB
Related parties Amount Start date Maturity date Note
Borrowing
Lending
(6) Information on Assets Transfer and Debt Restructuring by Related Party
Unit: RMB
Related parties Content of the related-partytransaction Amount for the current period Amount for the previous period
Shenzhen Investment Holdings
Co. Ltd. Transfer of fixed assets 171582.53
Shenzhen Shenfubao (Group)
Co. Ltd. Acquisition of equity interest 86923058.15
ShenZhen Special Economic
Zone Real Estate & Properties
(Group) Co. Ltd. and Shenzhen Acquisition of equity interest 206390636.61
SPG Investment Co. Ltd.China Shenzhen Foreign Trade
(Group) Corp. Ltd. Acquisition of equity interest 20902006.86
(7) Information on Remuneration for Key Management Personnel
Unit: RMB
Item Amount for the current period Amount for the previous period
Remuneration for key management
personnel 12312227.12 15149368.18
(8) Other Related-party Transactions
6. Accounts Receivable and Payable of Related Party
(1) Accounts Receivable
Unit: RMB
238ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Ending balance Beginning balance
Project name Related parties
Carrying amount Bad debt provision Carrying amount Bad debt provision
Hebei Shenbao
Accounts receivable InvestmentDevelopment Co. 27085777.03 812573.31 15856697.13 475700.91
Ltd.Shenzhen Shenyue
United Investment 4407622.21 240783.73 1545493.83 46364.81
Co. Ltd.Shenzhen Chuangke
Development Co. 1607922.88 48237.69
Ltd.Shenzhen Guarantee
Group Co. Ltd. 69764.97 2092.95
Shenzhen Hi-tech
Zone Development
Construction Co. 2753626.63 253302.70 3292961.84 177657.15
Ltd.Shenzhen
Convention &
Exhibition Center 1918835.40 71436.06 1379512.79 55256.38
Management Co.Ltd.ShenZhen Special
Economic Zone
Real Estate &
Properties (Group)
Co. Ltd. and its 12659861.03 2147549.43 10072563.13 674112.86
consolidated
subsidiaries except
where the context
otherwise requires
Shenzhen Tsinghua
University Research 57574.31 1727.23 113107.19 3393.22
Institute
Shenzhen Total
Logistics Service 608792.15 18263.76 779745.46 23392.36
Co. Ltd.Shenzhen Shenzhen
Hong Kong Science
and Technology
Innovation Park 3342750.39 100282.51
Operation
Development Co.Ltd.Shenzhen Shenzhen
Hong Kong Science
and Technology
Innovation 372253.03 11167.59 114435.00 3433.05
Cooperation Zone
Development Co.Ltd.Shenzhen Shenzhen
Shantou Special
Cooperation Zone
508084.6415242.54
SIHC Investment
Development Co.Ltd.Shenzhen City
Construction
Industrial Park 391346.42 11740.39
Development Co.，Ltd.Shenzhen 395685.75 11870.57
239ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Chenglong Real
Estate Development
Co Ltd.Shenzhen Large
Industrial Zone
(Shenzhen Export
Processing Zone) 480229.65 64846.89 1811138.85 104774.17
Development
Management Group
Co. Ltd.Shenzhen Fubao
Industrial Park 5365.01 160.95 307714.39 9231.43
Operation Co. Ltd.Shenzhen
Environmental
Protection 1653450.97 63121.44 1331881.42 39956.44
Technology Group
Co. Ltd.Shenzhen
Transportation
Station 5.51 0.17
Development Co.Ltd.Shenzhen
Shenfubao (Group)
Tianjin Industrial 1604015.82 66998.26 917263.67 66998.66
Development Co.Ltd.Shenzhen
Shenfubao (Group)
Tianjin Investment 3255544.36 155467.93 2454324.58 88615.34
Development Co.Ltd.Shenzhen
Shenfubao (Group) 2567475.48 77024.27 3699118.44 145973.55
Co. Ltd.Shenzhen
Shenfubao Eastern
Investment 55.70 1.67
Development Co.Ltd.Shenzhen Shentou
Property
Development Co. 2378435.98 71353.08 1500297.75 45008.93
Ltd.Shenzhen
Investment Holdings 4131697.18 144179.32 6623892.25 218945.16
Co. Ltd.Shenzhen Bay Area
International Hotel 51312666.65 1539380.00
Co. Ltd.Shenzhen Cultural
Business
Development Co. 935.08 28.05
Ltd.Shenzhen Bay
(Baoding)
Innovation 156427.62 4692.83 116061.39 3481.84
Development Co.Ltd.Shenzhen Bay
Technology
Development Co. 137865750.97 7568725.60 131203332.93 3936099.99
Ltd.Shenzhen
Xiangmihu 992580.22 29777.41 811111.70 24333.35
240ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
International
Exchange Center
Development Co.Ltd.Shenzhen Infinova
Smart Park
Technology Co. 1391838.00 41755.14 320000.00 9600.00
Ltd.China Shenzhen
Foreign Trade 24500.00 6600.00
(Group) Corp. Ltd.Total 212618383.72 12038908.85 235633141.06 7693804.22
Hebei Shenbao
Contract assets InvestmentDevelopment Co. 361513.73 373225.03
Ltd.Shenzhen Large
Industrial Zone
(Shenzhen Export
Processing Zone) 231455.46 337422.67
Development
Management Group
Co. Ltd.Shenzhen Fubao
Industrial Park 26457.15 26457.15
Operation Co. Ltd.Shenzhen
Environmental
Protection 28385.93
Technology Group
Co. Ltd.Shenzhen
Shenfubao (Group) 43500.00 43500.00
Co. Ltd.Shenzhen
Shenfubao Eastern
Investment 14704.85 14649.15
Development Co.Ltd.Shenzhen
Investment Holdings 133597.44 139004.56
Co. Ltd.Shenzhen Bay Area
Urban Construction
and Development 50169.55
Co. Ltd.Shenzhen
Xiangmihu
International
Exchange Center 14806.94 46418.86
Development Co.Ltd.Shenzhen Urban
Construction
Mingyuan Industrial 18450.00
Co. Ltd.Total 844485.57 1059232.91
Shenzhen Hi-tech
Other receivables Zone DevelopmentConstruction Co. 167086.43 10525.99 121714.92 5080.85
Ltd.Shenzhen
Convention &
Exhibition Center 1000.00
Management Co.Ltd.
241ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
ShenZhen Special
Economic Zone
Real Estate &
Properties (Group)
Co. Ltd. and its 100000.00 30000.00 100000.00 10000.00
consolidated
subsidiaries except
where the context
otherwise requires
Shenzhen Binjiang
10000.00300.00
Industry Co. Ltd.Shenzhen Large
Industrial Zone
(Shenzhen Export
Processing Zone) 102583.54 3258.35 2583.54 77.51
Development
Management Group
Co. Ltd.Shenzhen Qianhai
Advanced
Information Service 10720575.27 321617.26 10720575.27 321617.26
Co. Ltd.1
Shenzhen
Shenfubao (Group) 81264.60 2437.94
Co. Ltd.Shenzhen
Shenfubao Eastern
Investment 350000.00 10500.00
Development Co.Ltd.Shenzhen Shentou
Property
Development Co. 81233.00 81233.00 81233.00 81233.00
Ltd.Shenzhen
Investment Holdings 685740.90 157127.32 685740.90 112893.70
Co. Ltd.Shenzhen Xinhai
Holding Co. Ltd. 201499990.18 6044999.71 201499990.18 6044999.71
Shenzhen Xinhai
Rongyao Real
Estate Development 375068984.55 11252069.54 375068984.55 11252069.54
Co. Ltd.Shenzhen Tianjun
Industrial Co. Ltd. 10000000.00 10000000.00 0.00
Shenzhen Bay
Technology
Development Co. 10065313.75 301959.41 4159687.50 124790.63
Ltd.Shenzhen Wufang
Ceramics Industrial 1747264.25 1747264.25 1747264.25 1747264.25
Co. Ltd.China Shenzhen
Foreign Trade 3734.83 373.48
(Group) Corp. Ltd.Total 610681036.47 19963292.77 604191508.94 19700399.93
(2) Accounts Payable
Unit: RMB
Project name Related parties Ending carrying amount Beginning carrying amount
Shenzhen General Institute of
Accounts payable Architectural Design and 2102761.00 1199653.20
Research Co. Ltd.
242ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Shenzhen Shentou Property
Development Co. Ltd. 889007.87 787002.77
Shenzhen SDG Service Co.Ltd. 564288.00 282144.00
Shenzhen Infinova Renyong
Information Co. Ltd. 25203.84
Shenzhen Qianhai Advanced
8126060.009026060.00
Information Service Co. Ltd.Total 11682116.87 11320063.81
Other payables Shenzhen Guarantee GroupCo. Ltd. 1494841.29 1494841.29
Shenzhen Talent Recruitment
International Co. Ltd. 147132.37
Shenzhen Free Trade Zone Life
Service Co. Ltd. 4850.00 4850.00
Shenzhen Construction
Development (Group) 152227.00
Company
Shenzhen Large Industrial Zone
(Shenzhen Export Processing
Zone) Development 31218.60
Management Group Co. Ltd.Shenzhen Foreign Service
Group Co. Ltd. 1101949.83
Shenzhen Fubao Industrial Park
Operation Co. Ltd. 11579.00
Shenzhen South Certification
Co. Ltd. 34002.15
Shenzhen Shenfubao (Group)
Co. Ltd. 2863523.56 2503870.62
Shenzhen Shenfubao Eastern
Investment Development Co. 117693.11
Ltd.Shenzhen Shentou Property
Development Co. Ltd. 8621679.48 10126517.16
Shenzhen Investment Holdings
Co. Ltd. 868934.14
Shenzhen Cultural Business
Development Co. Ltd. 773680.00
Shenzhen Bay Wanli Hotel
Branch of Shenzhen Wuzhou 687525.00
Hotel Management Co. Ltd.Shenzhen Bay Wanyi Hotel
Branch of Shenzhen Wuzhou 562521.00
Hotel Management Co. Ltd.Shenzhen SME Venture Capital
Co. Ltd. 339760.59
Tian’an International Building
Property Management 5214345.90 5214345.90
Company of Shenzhen
China Shenzhen Foreign Trade
(Group) Corp. Ltd. 265018.43
Shenzhen Bay Technology
Development Co. Ltd. 143003641.12 179966045.36
Shenzhen Bay Area Urban
Construction and Development 360752.18 360752.18
Co. Ltd.Shenzhen Real Estate Jifa
Warehousing Co. Ltd. 42296665.14 42296665.14
Shenzhen Infinova Limited 144219.02 144219.02
Yangzhou Lvfa Real Estate Co.Ltd. 369623672.79 313705372.89
Total 574884143.71 559654767.55
243ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Note 1: The other receivables of the Company to Shenzhen Qianhai Advanced Information Service Co. Ltd. (hereinafter referred to
as “Qianhai Advanced”) are advance money paid in advance due to the demolition of Guanlan Bengling Project. According to the
joint and several guarantee commitment letter signed by Shenzhen Xinhai Rongyao Real Estate Development Co. Ltd. Xinhai
Rongyao is jointly and severally liable for the tax and interest advanced by the Company. Out of prudence the Company's
transactions to Qianhai Advanced are disclosed.
7. Commitments of Related Party
8. Other
XV. Share-based Payment
1. The Overall Situation of Share-based Payments
□Applicable□Not applicable
2. Equity-settled Share-based Payments
□Applicable□Not applicable
3. Cash-settled Share-based Payments
□Applicable□Not applicable
4. Share-Based Payment Expenses for the Period
□Applicable□Not applicable
5. Modification and Termination of Share-based Payment
6. Other
XVI. Commitments and Contingency
1. Significant Commitments
Significant commitments on balance sheet date
Signed large amount contract under performing or to be performed
Item Amount of Current Period Same period of last year
Commitments signed but hasn’t been recognized in
large amount 2528685973.91 2661507526.23
2. Contingency
(1) Significant Contingency on Balance Sheet Date
(1) The action about transferring Jiabin Building contentious matter
In 1993 the Company signed Right of Development Transfer Contract of Jiabin Building with Shenzhen Jiyong Property
Development Co. Ltd. (hereinafter referred to as “Jiyong Company”). Since the contract was not effectively executed the Company
subsequently filed a series of lawsuits against the parties involved in the project but the outcome was not favorable to the Company.Therefore the Company calculated and withdrew bad-debt provisions for accounts receivable from Jiyong Company in full in past
years for the transfer of Jiabin Building. On October 31 2018 Shenzhen Intermediate People’s Court made a civil award and ruled
that the Company’s application for the bankruptcy of Jiyong Company would not be 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 maintain the
original ruling. As of the issuance date of the report there is no new progress in the case.
244ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
(2) The arbitration case of property contract dispute of Software Park Phase I between the Fourth Owners' Committee of Shenzhen
Nanshan District Software Park (Applicant) and Shenzhen ITC Technology Park Service Co. Ltd. (Respondent 1 hereinafter
referred to as the "ITC Technology Park Company") plus the High-tech Zone Branch of Shenzhen ITC Technology Park Service Co.Ltd. (Respondent 2 hereinafter referred to as the "High-tech Zone Branch")
In February and March 2021 the High-tech Zone Branch and the ITC Technology Park Company received arbitration notices
respectively of the case [2021] Shenguozhongshou No. 541 and [2021] Shenguozhongshou No. 1063. The Fourth Owners'
Committee of Shenzhen Nanshan District Software Park applied for the following award: Respondent 1 shall return
RMB9893677.82 and fund occupation fee of RMB3272665.99 (temporarily calculated from July 1 2012 to January 31 2021)
totaling RMB13166343.81; respondent 1 shall bear the attorney's fee of RMB30000.00; respondent 2 shall return
RMB31077017.59 and RMB635929.44 of fund occupation fee (temporarily calculated from July 1 2020 to January 31 2021)
totaling RMB31712947.03; respondent 2 shall bear the attorney's fee of RMB30000.00. The total amount of the above is
RMB45209290.84.On August 21 2022 the Arbitration Tribunal held the second hearing to inquire about the audit report issued by the third-party
auditor and the details of the case on September 5 2022 Jun & Partners responded to the Special Audit Report of Case No. 541 and
Case No. 1063. On 23 March and 24 March 2023 two arbitration awards were received respectively and according to the conclusion
of arbitration awards the High-tech Zone Branch should return approximately RMB540000 of public revenue to the Owners'
Committee of Shenzhen Nanshan District Software Park (in spite of RMB32 million requested by the Owners' Committee); in regard
to the arbitration case between the ITC Technology Park Company and the Owners' Committee of Shenzhen Nanshan District
Software Park all requests of the latter have been rejected by the arbitration tribunal (in spite of RMB13 million requested by the
Owners' Committee).
(3) Litigation case about Shenzhen Basepoint Intelligent Co. Ltd.
On 20 August 2017 Shenzhen Facility Management Community Technology Co. Ltd. signed a Software Service Contract with
China Merchants Property Intelligent Facility Management Platform. The company procured a RMB3 million facility management
system from Basepoint for the project (31 items). During delivery of the project only 11 items of the system delivered by Basepoint
passed the acceptance inspection leaving the full delivery unfinished. Therefore the Company failed to reach a consensus with
Basepoint on payment and the latter sued the Company in 2021 making RMB3 million of the Company's fund locked up. According
to the judgment of first instance on 10 August 2022 the Company should compensate RMB3 million to Basepoint. The Company
refused to accept the first instance judgment and instituted an appeal for second instance in 2022. The second instance was heard on
11 August 2023 and is awaiting judgment.
(4) Property management fee litigation case regarding Shenzhen Xuansheng Industrial Development Co. Ltd.
Haiwai Lianyi Building No. 12 Yingchun Road Luohu District Shenzhen City is partly owned by the United Front Work
Department of the Shenzhen Municipal Committee and Shenzhen Jinhailian Property Management Co. Ltd. is authorized by the
United Front Work Department of the Shenzhen Municipal Committee to manage the property. On 31 December 2006 Jinhailian
and Shenzhen Xuansheng Industrial Development Co. Ltd. signed the Property Management Agreement of "Haiwai Lianyi
Building" which agreed that Xuan heng would provide property management services to Jinhailian and Jinhailian would pay the
corresponding property management fees to Xuansheng.On 7 January 2020 Xuansheng signed the Agreement with Jinhailian and the outsider Shenzhen Shengxin Hotel Management Co.Ltd. and agreed that the three parties reached an agreement on the management fee principal maintenance fee and electricity fee
owed to Xuansheng from 1 July 2017 to 31 December 2019 on the 5th-8th floor of Haiwai Lianyi Building by Jinhailian as follows:
1. The management fee principal The amount of maintenance fee and electricity fee is RMB696033.73; 2. Jinhailian will return the
above arrears repayment date before 22 January 2020; 3. Out of friendly relationship if Jinhailian cannot return the above arrears
before 22 January 2020 then Shengxin Hotel is willing to advance from the rent payable to Jinhailian; 4. If due to objective reasons
Shengxin Hotel cannot complete the lease surrender Xuansheng will refund this advance in total and Jinhailian will still return the
outstanding amount. However both Jinhailian and Shengxin Hotel failed to fulfill their payment obligations as agreed in the said
agreement. In this regard Xuansheng issued a Notice of Demand for Payment of Arrears on 13 January 2022 and an Attorney's Letter
to Jinhailian on 15 August 2022 demanding to fulfill its obligation to pay a property management fee principal maintenance fee and
electricity fee totaling RMB696033.73. On 1 September 2022 Xuansheng appealed to the Shenzhen Luohu District People's Court.As of 31 December 2022 Jinhailian expects to pay RMB766612.52 (including: property management fee principal maintenance fee
and electricity fee totaling RMB696033.73 and overdue interest of RMB70578.79).On 12 January 2023 the People's Court of Luohu District Shenzhen issued a judgment of first instance which ruled that Shenzhen
Jinhailian Property Management Co. Ltd. shall pay Shenzhen Xuansheng Industrial Development Co. Ltd. a total of
RMB696033.73 for a property management fee principal maintenance fee and electricity fee for the period from 1 July 2017 to 31
December 2019 and interest for late payment. Jinhailian appealed against the result of the first trial. During the second trial
conducted on line Shenzhen Intermediate People’s Court rejected all requests appealed by Jinhailian and upheld the judgment of the
first trial.Shenzhen Xuansheng applied to the People’s Court of Luohu District for compulsory execution on 8 August 2023. On 14 August
2023 the Company received the execution notice (2023) Y03MZ No. 17352 from the People’s Court of Luohu District which
required the Company to immediately perform the obligations determined by the effective legal instrument and bear the interest on
the debt during the delayed period of performance the application for execution fee and other related expenses. After communicating
245ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
with the court the Company was required to pay Shenzhen Xuansheng a total sum of RMB696033.73 for property management fees
building repair funds and electricity expenses incurred between 1 July 2017 and 31 December 2019. As of 22 August 2023 we also
owed overdue interest amounting to RMB95254.15 and delayed compounded interest totalling RMB3532.37 bringing the grand
total payable amount to RMB794820.25. Additionally the Company was responsible for paying the first-instance court acceptance
fee of RMB5733.06 at the People’s Court of Luohu District along with the execution fee of case (2023) Y03MZ No. 17352 which
amounts to RMB10405.53. In summary the aggregate total of all these costs comes to RMB810958.84.In summary adhering to the principles of respecting the law and accepting judgments and with the aim to avoid the detrimental
impact on the Company's normal business operations due to potential compulsory enforcement measures such as bank account
freezing we have agreed to and indeed made the payment in question. This decision also served to bring an end to the legal dispute
with Shenzhen Xuansheng. On 20 September 2023 the Company received a Notice of Case Closure for a Completed Enforcement
Matter fromthe People’s Court of Luohu District effectively marking the conclusion of the case.
(5) Arbitration case concerning civil loan dispute of Shenzhen Rongyao Real Estate Development Co. Ltd.
Due to Xinhai Rongyao and Xinhai Holding's failure to repay principal and interest to Rongyao Real Estate on schedule Rongyao
Real Estate has applied to the Shenzhen Court of International Arbitration for arbitration. The arbitral award orders Xinhai Rongyao
and Xinhai Holding to repay Rongyao Real Estate the full loan principal of RMB671913800 and corresponding interest (at an
annual interest rate of 11% calculated based on the principal amount of RMB671913800 yuan from 4 August 2022 until the full
repayment of the loan; provisionally amounting to RMB49068400). The award further decides that Xinhai Investment Urban
Construction Property Service Company Lianghong Industry and Tiancheng Investment shall bear joint and several liability for the
obligations and responsibilities of Xinhai Rongyao and Xinhai Holding under the first arbitration claim. It also decrees that all
respondents shall bear the attorney fees of RMB1.2 million paid by Rongyao Real Estate. Lastly the award requires all respondents
to cover the full arbitration costs and property preservation expenses of this case. The provisional total amount owed currently stands
at RMB722182200.On 4 May 2023 the Shenzhen Court of International Arbitration issued a Notice of Case Acceptance and the filing process has since
been completed. Subsequently the respondent initiated a proceeding at the Shenzhen Intermediate People's Court seeking
confirmation of the validity of the arbitration agreement resulting in the Arbitration Institute temporarily suspending its hearing of
the case. After the court's review the respondent's application was dismissed and the arbitration proceedings will resume once the
Shenzhen Court of International Arbitration notifies all parties concerned to proceed with the arbitration process.
(6) Arbitration case concerning equity transfer dispute of ShenZhen Properties & Resources Development (Group) Ltd.
Due to the failure of Xinhai Rongyao to pay compensation for investment losses to Shenzhen Property Group as agreed Shenzhen
Property Group has applied to the Shenzhen Court of International Arbitration for arbitration. It was ruled that Xinhai Rongyao must
pay RMB170556833.33 to Shenzhen Property Group as compensation for investment loss; that Sichuan Trust does not legally
possess the 1% equity interest registered in its name in Shenzhen Rongyao Real Estate Development Co. Ltd. And that Xinhai
Rongyao is the actual owner of this 1% equity interest; that Xinhai Rongyao must pledge and register its actually-held 31% equity
interest in Shenzhen Rongyao Real Estate Development Co. Ltd. to Shenzhen Property Group; that Sichuan Trust must cooperate in
facilitating the registration procedures for the pledge of the aforementioned 1% equity interest in Shenzhen Rongyao Real Estate
Development Co. Ltd.; that both Xinhai Rongyao and Sichuan Trust must bear the legal fees of RMB780000 incurred by Shenzhen
Property Group; that Xinhai Rongyao and Sichuan Trust must cover all arbitration costs and property preservation expenses in this
case. The provisional total amount involved in these rulings amounts to RMB171336833.33.The Shenzhen Court of International Arbitration issued the Notice of Case Acceptance on 14 April 2023 and the case was heard at
Shenzhen Court of International Arbitration on 14 December 2023 and is currently waiting for the decision.
(7) As a real estate developer the Company provides mortgage loan guarantees and pays loan deposits for commercial housing
purchasers according to the operation practice of the real estate industry. By 31 December 2023 the balance of the deposit not
discharged with guarantee was RMB1133604.61 which would be discharged when the mortgage loans are paid off.As a real estate developer the Company provides mortgage loan guarantees for commercial housing purchasers according to the
operation practice of the real estate industry. By 31 December 2023 the balance of the deposit not discharged with guarantee was
RMB211064285.20 which would be discharged when the mortgage loans are paid off.
(2) Explanation shall be given even if there is no significant contingency for the Company to disclose
There was no significant contingency in the Company to disclose.
3. Others
XVII. Events after Balance Sheet Date
1. Significant Non-adjustment Matters
Unit: RMB
246ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Influence number to the
Item Contents financial position and operating Reason of inability to estimate
results influence number
2. Distribution of Profit
Amount to be distributed for every ten shares (RMB) 3.12
Amount to be distributed for every ten shares after consideration
and approval (RMB) 3.12
3. Sales Return
4. Notes to Other Events after Balance Sheet Date
Distribution of profit after the balance sheet date
On 29 March 2024 the 25th meeting of the 10th Board of Directors of the Company approved the profit distribution plan for 2023 as
follows: a cash dividend of RMB3.12 (tax included) for every 10 shares are to be paid to all shareholders on the basis of 595979092
shares in total at the end of 2023. The total cash dividends will be RMB185945476.70 and the remaining undistributed profits will
be carried forward to the next year. The plan will be implemented after approval by the Shareholders' Meeting.XVIII. Other Significant Matters
1. The Accounting Errors Correction in Previous Period
(1) Retrospective Restatement
Unit: RMB
Content Processing program Name of the influenced reportitems during comparison period Accumulative impact
(2) Prospective Application
Content Processing program Reason for adopting prospectiveapplication
2. Debt Restructuring
3. Assets Replacement
(1) Non-monetary Assets Exchange
(2) Other Assets Replacement
4. Pension Plans
5. Discontinued Operations
Unit: RMB
Profit from
discontinued
operations
Item Revenue Costs Total profit Income taxexpense Net profit attributable toowners of the
Company as the
parent
247ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Other notes:
6. Segment Information
(1) Determination Basis and Accounting Policies of Reportable Segment
In accordance with the internal organization structure management requirements and internal report system the
Company identifies the reportable segment based on the business segment and assesses the operational
performance of real estate sales property management and lease service. The assets and liabilities sharing with
other segments shall be proportionally distributed among segments by scales.
(2) The Financial Information of Reportable Segment
Unit: RMB
Item Real estate business Property House leasing Offset amongmanagement business segment Total
Operating Revenue 1234537188.62 1578719323.98 151860512.44 2965117025.04
Operating cost 818496053.38 1316777091.32 98252237.79 2233525382.49
Total assets 14465264793.80 1974828270.01 547969004.28 16988062068.09
Total liabilities 10591038446.03 1548292274.22 145006312.03 12284337032.28
(3) If there Was no Reportable Segment or the Total Amount of Assets and Liabilities of Each Reportable
Segment Could not Be Reported Relevant Reasons Shall Be Clearly Stated
(4) Other notes
7. Other Significant Transactions and Events with Influence on Investors’ Decision-making
8. Other
XIX. Notes of Main Items in the Financial Statements of the Company as the Parent
1. Accounts Receivable
(1) Disclosure by Aging
Unit: RMB
Aging Ending carrying amount Beginning carrying amount
Within one year (including 1 year) 123156033.99 4013380.50
One to two years 1024931.55 1312285.45
Two to three years 716023.90 9756.09
More than three years 96824380.44 96814624.35
Three to four years 9756.09 112354.95
Four to five years 112354.95
Over 5 years 96702269.40 96702269.40
Total 221721369.88 102150046.39
248ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
(2) Disclosure by Withdrawal Methods for Bad Debts
Unit: RMB
Ending balance Beginning balance
Category Carrying amount Bad debt provision Carrying Carrying amount Bad debt provision Carrying
Amount Proportion Amount Withdrawal value Amount Proportion Amount Withdrawal valueproportion proportion
Accounts
receivable
withdrawal 98246909.9 98246909. 9670226
of Bad debt 44.31% 100.00% 0.00 96702269.40 94.67% 100.00% 0.00
provision 4 94 9.40
separately
accrued
Of which:
Accounts
receivable
withdrawal 123474459. 3445301.1 120029158 310734.2 5137042
of bad debt 55.69% 2.79% 5447776.99 5.33% 5.70%94 6 .78 8 .71
provision of
by group
Of which:
221721369.10169221120029158102150046.397013005137042
Total 100.00% 45.86% 100.00% 94.97%
881.10.7893.68.71
Bad debt provision separately accrued: RMB98246909.94
Unit: RMB
Beginning balance Ending balance
Name
Carrying amount Bad debt Carrying amount Bad debt Withdrawal Reason forprovision provision proportion withdraw
Shenzhen Jiyong
Properties & Involved in
Resources 93811328.05 93811328.05 93811328.05 93811328.05 100.00% lawsuit and
Development unrecoverable
Company
Luohu District
Economic Long aging and
Development 54380.35 54380.35 54380.35 54380.35 100.00% expected
Company unrecoverable
Shenzhen Tewei
Industry Co. Long aging and
Ltd. (Chenhui 2836561.00 2836561.00 2836561.00 2836561.00 100.00% expected
Building) unrecoverable
Individually
immaterial but Involved in
individually 1544640.54 1544640.54 100.00% lawsuit and
provided for bad unrecoverable
debts
Withdrawal of bad debt provision by group: 3445301.16
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Portfolio of credit risk features 111348682.81 3445301.16 3.09%
Government portfolio 12125777.13
Total 123474459.94 3445301.16
Notes to the determination basis for the group:
If adopting the general mode of expected credit loss to withdraw bad debt provision of accounts receivable:
□Applicable□Not applicable
249ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
(3) Bad Debt Provision Withdrawal Reversed or Recovered in the Current Period
Withdrawal of bad debt provision:
Unit: RMB
Beginning Changes in the current periodCategory balance Ending balanceWithdrawal Reversed orrecovered Verification Others
Bad debt
provision 96702269.40 1544640.54 98246909.94
accrued by item
Withdrawal of
bad debt
provision by 310734.28 3134566.88 3445301.16
group
Total 97013003.68 4679207.42 101692211.10
Of which significant amount of recovered or transferred-back bad debt provision for the current period:
Unit: RMB
Basis and rationality of
Name of the entity Amount reversed orrecovered Reason for reversal Way of recovery
determining the original
withdrawal proportion of
bad debt provision
(4) Accounts Receivable Written-off in Current Period
Unit: RMB
Item Written-off amount
Of which the verification of significant accounts receivable:
Unit: RMB
Verification Whether occurred
Name of the entity Nature Written-off amount Reason forverification procedures because of related-performed party transactions
Notes to verification of accounts receivable:
(5) Top 5 of the Ending Balance of the Accounts Receivable and the Contract Assets Collected according to
Arrears Party
Unit: RMB
Ending balance of
Proportion to total bad debt provision
Name of the entity Ending balance of Ending balance of
Ending balance of ending balance of of accounts
accounts receivable contract assets accounts receivable receivable andand contract assets accounts receivableand contract assets impairmentprovision for
contract assets
Shenzhen Futian
Talent Anju Co. Ltd. 109392112.37 109392112.37 49.33% 3281763.37
Shenzhen Jiyong
Properties &
Resources 93811328.05 93811328.05 42.31% 93811328.05
Development
Company
Shenzhen Futian
District Government 12125777.13 12125777.13 5.47%
Property
250ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Management Centre
Shenzhen Tewei
Industry Co. Ltd. 2836561.00 2836561.00 1.28% 2836561.00
Shenzhen Feihuang
Industrial Co. Ltd. 769919.05 769919.05 0.35% 769919.05
Total 218935697.60 218935697.60 98.74% 100699571.47
2. Other Receivables
Unit: RMB
Item Ending balance Beginning balance
Dividend receivable 151433108.41
Other receivables 4489713785.01 5010963761.04
Total 4489713785.01 5162396869.45
(1) Interest Receivable
1) Category of Interest Receivable
Unit: RMB
Item Ending balance Beginning balance
2) Significant Overdue Interest
Unit: RMB
Whether occurred
Entity Ending balance Overdue time Overdue reason impairment and its
judgment basis
Other notes:
3) Disclosure by Withdrawal Methods for Bad Debts
□Applicable□Not applicable
4) Bad Debt Provision Withdrawal Reversed or Recovered in the Current Period
Unit: RMB
Category Beginning
Changes in the current period
balance Withdrawal Reversed or Charged-
Ending balance
recovered off/Written-off Other changes
Of which significant amount of recovered or transferred-back bad debt provision for the current period:
Unit: RMB
Basis and rationality of
Name of the entity Amount reversed orrecovered Reason for reversal Way of recovery
determining the original
withdrawal proportion of
bad debt provision
Other notes:
5) Interest Receivable Written-off in Current Period
Unit: RMB
Item Written-off amount
Of which the verification of significant interest receivable:
Unit: RMB
251ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Reason for Verification Whether occurredName of the entity Nature Written-off amount verification procedures because of related-performed party transactions
Notes to verification:
Other notes:
(2) Dividend Receivable
1) Category of Dividend Receivable
Unit: RMB
Project (or investee) Ending balance Beginning balance
SZPRD Urban Renewal Co. Ltd. 151433108.41
Total 151433108.41
2) Significant Dividends Receivable Aging over 1 Year
Unit: RMB
Whether occurred
Project (or investee) Ending balance Aging Reason impairment and its
judgment basis
3) Disclosure by Withdrawal Methods for Bad Debts
□Applicable□Not applicable
4) Bad Debt Provision Withdrawal Reversed or Recovered in the Current Period
Unit: RMB
Beginning Changes in the current periodCategory balance Withdrawal Reversed or Charged-
Ending balance
recovered off/Written-off Other changes
Of which significant amount of recovered or transferred-back bad debt provision for the current period:
Unit: RMB
Basis and rationality of
Name of the entity Amount reversed or determining the originalrecovered Reason for reversal Way of recovery withdrawal proportion of
bad debt provision
Other notes:
5) Dividends Receivable Written-off in Current Period
Unit: RMB
Item Written-off amount
Of which the verification of significant dividends receivable:
Unit: RMB
Verification Whether occurred
Name of the entity Nature Written-off amount Reason forverification procedures because of related-performed party transactions
Notes to verification:
252ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Other notes:
(3) Other Receivables
1) Category of Other Receivables by Account Nature
Unit: RMB
Nature Ending carrying amount Beginning carrying amount
Guaranteed deposit 2555194.00 2537789.00
Payment on behalf 39020.00
External intercourse funds 134608516.50 23374171.34
Intercourse funds to subsidiary 4383952304.98 5017542623.59
Total 4521155035.48 5043454583.93
2) Disclosure by Aging
Unit: RMB
Aging Ending carrying amount Beginning carrying amount
Within one year (including 1 year) 4489358790.65 5011106446.45
One to two years 336882.00 51049.05
Two to three years 35449.05 69600.00
More than three years 31423913.78 32227488.43
Three to four years 69600.00
Four to five years 50000.00
Over 5 years 31354313.78 32177488.43
Total 4521155035.48 5043454583.93
3) Disclosure by Withdrawal Methods for Bad Debts
Unit: RMB
Ending balance Beginning balance
Category Carrying amount Bad debt provision Carrying Carrying amount Bad debt provision Carrying
Amount Proportion Amount Withdrawal value Withdrawal valueproportion Amount Proportion Amount proportion
Bad debt
provision 12763156 22485536. 10514602 1261480 23592842. 102555208
separately 2.82% 17.62% 2.50% 18.70%2.61 08 6.53 50.95 54 .41
accrued
Of which:
Withdraw
al of bad
debt 4393523 8955714.3 43845677 4917306 8897980.3 4908408597.18% 0.20% 97.50% 0.18%
provision 472.87 9 58.48 532.98 5 52.63
by group
Of which:
Total 4521155 31441250. 44897137 5043454 32490822. 50109637100.00% 0.70% 100.00% 0.64%
035.484785.01583.938961.04
Bad debt provision separately accrued: RMB22485536.08
Unit: RMB
Beginning balance Ending balance
Name
Carrying amount Bad debt Carrying amount Bad debt Withdrawal Reason forprovision provision proportion withdraw
Shum Yip
Properties 109666108.82 7110900.41 111203099.25 6057072.72 5.45%
Long-term
uncollectible
253ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Development
Co. Ltd.Dameisha Long-term
Tourism Centre 2576445.69 2576445.69 2576445.69 2576445.69 100.00% uncollectible
Hong Kong
Hang Yue
Development
Company 3271837.78 3271837.78 3271837.78 3271837.78 100.00%
Long-term
uncollectible
Limited (Wuyao
Company)
Elevated train
project 2542332.43 2542332.43 2542332.43 2542332.43 100.00%
Long-term
uncollectible
Shanghai Yutong
Real Estate Co. 5676000.00 5676000.00 5676000.00 5676000.00 100.00% Long-term
Ltd. uncollectible
Individually
immaterial but
individually 2415326.23 2415326.23 2361847.46 2361847.46 100.00% Long-term
provided for bad uncollectible
debts
Total 126148050.95 23592842.54 127631562.61 22485536.08
Withdrawal of bad debt provision by group: 8955714.39
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Within one year (including 1
year) 260459.14 7813.77 3.00%
1-2 years (including 2 years) 336882.00 33688.20 10.00%
2-3 years (including 3 years) 35449.05 10634.72 30.00%
3-4 years (including 4 years) 69600.00 34800.00 50.00%
4-5 years (including 5 years)
Over 5 years 8868777.70 8868777.70 100.00%
Total 9571167.89 8955714.39
Notes to the determination basis for the group:
Withdrawal of bad debt provision by adopting the general mode of expected credit loss:
Unit: RMB
First stage Second stage Third stage
Expected loss in the
Bad debt provision Expected credit loss in duration (credit Expected loss in the Total
the next 12 months impairment not duration (credit
occurred) impairment occurred)
Balance of 1 January
20238997495.8123493327.0832490822.89
Balance of 1 January
2023 in the current
period
Withdrawal of the
current period 57734.04 57734.04
Amount transferred-back
for the current period -53478.77 -1053827.69 -1107306.46
254ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Balance of 31 December
20239001751.0822439499.3931441250.47
The basis for the division of each stage and the withdrawal proportion of bad debt provision
Changes of carrying amount with significant amount changed of loss provision in the current period
□Applicable□Not applicable
4) Bad Debt Provision Withdrawn Reversed or Recovered in the Current Period
Withdrawal of bad debt provision:
Unit: RMB
Beginning Changes in the current periodCategory balance Reversed or Charged- Ending balanceWithdrawal recovered off/Written-off Others
Other receivables 32490822.89 -1049572.42 31441250.47
Total 32490822.89 -1049572.42 31441250.47
Of which the bad debt provision recovered or transferred-back with significant amount during the current period:
Unit: RMB
Basis and rationality of
Name of the entity Amount reversed orrecovered Reason for reversal Way of recovery
determining the original
withdrawal proportion of
bad debt provision
5) Particulars of the Actual Verification of Other Receivables during the Current Period
Unit: RMB
Item Written-off amount
Of which the verification of significant other receivables:
Unit: RMB
Name of the entity Nature Written-off amount Reason for
Verification Whether occurred
verification procedures because of related-performed party transactions
Notes to the verification of other receivables:
6) Top 5 of the Ending Balance of Other Receivables Collected according to the Arrears Party
Unit: RMB
Proportion to total
Name of the entity Nature Ending balance Aging ending balance of Ending balance of
other receivables % bad debt provision
Dongguan Wuhe
Real Estate Co. Ltd. Intra-company funds 2113760170.00 Within 1 year 46.75%
Shenzhen
Guangming Wuhe Intra-company funds 1471000000.00 Within 1 year 32.54%
255ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Real Estate Co. Ltd.Yangzhou Wuhe
Real Estate Co. Ltd. Intra-company funds 750436602.93 Within 1 year 16.60%
SZPRD Xuzhou
Dapeng Real Estate
Development Co. Intra-company funds 41346763.61 Within 1 year 0.91%
Ltd.Shum Yip Properties
Development Co. Intra-company funds 111203099.25 Over 5 years 2.46% 6057072.72
Ltd.Total 4487746635.79 99.26% 6057072.72
7) Presentation in Other Receivables due to the Centralized Management of Funds
Unit: RMB
Other notes:
3. Long-term Equity Investment
Unit: RMB
Ending balance Beginning balance
Item
Carrying amount Impairmentprovision Carrying value Carrying amount
Impairment
provision Carrying value
Investment to
subsidiaries 1356325401.10 65834000.00 1290491401.10 1436329880.39 68364000.00 1367965880.39
Investment to
joint ventures
and associated 103041364.69 18983614.14 84057750.55 98765051.45 18983614.14 79781437.31
enterprises
Total 1459366765.79 84817614.14 1374549151.65 1535094931.84 87347614.14 1447747317.70
(1) Investment to Subsidiaries
Unit: RMB
Beginning Beginning Increase/decrease for the current period Ending
Investee balance (carrying balance of Withdrawal of Ending balance balance ofdepreciation Additional Reducedvalue) (Carrying value) depreciationreserve investment investment
impairment Others
provision reserve
Shenzhen
Huangcheng
Real Estate 35552671.93 35552671.93
Co. Ltd.Shenzhen
Wuhe
Industry
Investment 44950000.00 44950000.00
Development
Co. Ltd.SZPRD
Yangzhou
Real Estate 50000000.00 50000000.00
Development
Co. Ltd.Dongguan
ITC
Changsheng
Real Estate 20000000.00 20000000.00
Development
Co. Ltd.Shenzhen
International
Trade Center 195337851.23 195337851.23
Property
256ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Management
Co. Ltd.Shenzhen
Property
Engineering
and 3000000.00 3000000.00
Construction
Supervision
Co. Ltd.SZPRD
Commercial
Operation 63509120.32 63509120.32
Co. Ltd.Zhanjiang
Shenzhen
Real Estate 2530000.00 2530000.00
Development
Co. Ltd.Shum Yip
Properties
Development 15834000.00 15834000.00
Co. Ltd.SZPRD
Xuzhou
Dapeng Real
Estate 50000000.00 50000000.00
Development
Co. Ltd.Shenzhen
Rongyao Real
Estate 508000000.00 508000000.00
Development
Co. Ltd.SZPRD
Urban
Renewal Co. 77474479.29 77474479.29
Ltd.Dongguan
Wuhe Real
Estate Co. 50000000.00 50000000.00
Ltd.Shenzhen
Guangming
Wuhe Real 50000000.00 50000000.00
Estate Co.Ltd.Shenzhen
Wuhe Urban
Renewal Co. 236641757.62 236641757.62
Ltd.Yangzhou
Wuhe Real
Estate Co. 33500000.00 33500000.00
Ltd.Total 1367965880.39 68364000.00 80004479.29 1290491401.10 65834000.00
(2) Investment to Joint Ventures and Associated Enterprises
Unit: RMB
Increase/decrease for the current period
Beginning Beginning Gains and Cash Ending Ending
Investee balance balance of
losses Adjustment of Changes bonus or Withdrawal balance balance of
(carrying depreciation Additional Reduced recognized other of (Carrying depreciation
value) reserve investment investment under the comprehensive
of other profits Others
equity income equity announced
impairment value) reserve
to issue provisionmethod
I. Joint ventures
Shenzhen
Real Estate
Jifa 44730585.30 3335233.21 48065818.51
Warehousing
Co. Ltd.Tian’an 7037952.30 12985.03 7050937.33
257ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
International
Building
Property
Management
Company of
Shenzhen
Subtotal 51768537.60 3348218.24 55116755.84
II. Associated enterprises
Shenzhen
Wufang
Ceramics 18983614.14 18983614.14
Industrial
Co. Ltd.CSCEC
Intelligent
Parking 28012899.71 991215.00 63120.00 28940994.71
Technology
Co. Ltd.Subtotal 28012899.71 18983614.14 991215.00 63120.00 28940994.71 18983614.14
Total 79781437.31 18983614.14 4339433.24 63120.00 84057750.55 18983614.14
The recoverable amount is determined based on the net amount of the fair value minus disposal costs
□Applicable□Not applicable
The recoverable amount is determined by the present value of the forecasted future cash flow.□Applicable□Not applicable
The reason for the discrepancy between the foregoing information and the information used in the impairment tests in prior years or
external information
The reason for the discrepancy between the information used in the Company's impairment tests in prior years and the actual
situation of those years
(3) Other Notes
4. Operating Revenue and Cost of Sales
Unit: RMB
Amount for the current period Amount for the previous period
Item
Revenue Cost Revenue Cost
Principal business 1036514608.68 790579825.41 56064949.33 44999240.65
Others 17294746.27 19421465.41
Total 1053809354.95 790579825.41 75486414.74 44999240.65
Breakdown information of operating income and operating cost:
Unit: RMB
Category of Segment 1 Segment 2 Total
contracts Operating Operating cost Operating Operating Operating Operating OperatingRevenue Revenue cost Revenue cost Revenue Operating cost
Business
Type 1053809354.95 790579825.41 1053809354.95 790579825.41
Of which:
Real estate
sales 977069378.47 739184462.23 977069378.47 739184462.23
business
House
leasing 76739976.48 51395363.18 76739976.48 51395363.18
business
Classification
258ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
by operating
region
Of which:
Shenzhen 1053809354.95 790579825.41 1053809354.95 790579825.41
Market or
customer
type
Of which:
Contract type
Of which:
Classification
by time of
commodity
transfer
Of which:
Classification
by contract
term
Of which:
Classification
by sales
channel
Of which:
Total 1053809354.95 790579825.41 1053809354.95 790579825.41
Information about performance obligations:
Funds Type of quality
Timing of Nature of goods
fulfilment of Important that the
Whether or not undertaken by assurance
Item Company is the person the Company provided by theperformance payment terms committed to primarily expected to be Company andobligations transfer responsible returned to relatedcustomers obligations
Other notes:
The income of the parent company in current period was income from the sale of real estate and the rental business.Information in relation to the transaction price apportioned to the residual contract performance obligation:
The amount of revenue corresponding to performance obligations of contracts signed but not performed or not fully performed yet
was RMB0.00 at the period-end among which RMB__ was expected to be recognized in __ RMB__ was expected to be recognized
in __ and RMB__ was expected to be recognized in __.Significant contract changes or significant transaction price adjustments
Unit: RMB
Item Accounting treatment Amount of impact on revenue
Other notes:
5. Investment Income
Unit: RMB
Item Amount for the current period Amount for the previous period
259ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Long-term equity investment income
accounted by cost method 151433108.41
Long-term equity investment income
accounted by equity method 4339433.24 2040461.81
Income from the disposal of long-term
equity investments 757435475.21
Entrusted loans interest 159934119.41
Total 761774908.45 313407689.63
6. Other
XX. Supplementary Materials
1. Items and Amounts of Non-recurring Profit or Loss
□Applicable □Not applicable
Unit: RMB
Item Amount Note
Gains and losses on disposal of non- 702127250.52 Mainly attributable to the receipt of equitycurrent assets transfer
Government grants recognized in profit or
loss for the current period (except for
government grants closely related to the
Company's normal operating business in
compliance with national policies and in 7802977.21
accordance with defined criteria and
having a continuous impact on the
Company's profit or loss)
Other non-operating income and expense
other than the above -2773489.32
Other items of profit or loss that meet the Mainly attributable to the value-added tax
5684844.32
definition of non-operating profit or loss credits and deductions
Less: Income tax effects 76182752.47
Effects of the minority shareholders' equity
(net of tax) 284222.25
Total 636374608.01 --
Details of other profit and loss items in line with the definition of non-recurring gains and losses:
□Applicable □ Not applicable
This is mainly due to the fact that the VAT plus credit preferential policy is valid until 31 December 2023 and this gain does not have
a sustained impact on the Company's profit or loss.There are no other profit and loss items in line with the definition of non-recurring gains and losses in the Company.Note to defining the non-recurring profit and loss items listed in the Explanatory Notice of Information Disclosure by Companies
Offering Securities to the Public No. 1 - Non-recurring Profit and Loss Items as recurring profit and loss items
□Applicable□Not applicable
2. Return on Equity and Earnings Per Share
EPS
Profit as of reporting period Weighted average ROE (%)
EPS-basic EPS-diluted
Net profit attributable to
ordinary shareholders of the 10.26% 0.7786 0.7786
Company
Net profit attributable to
ordinary shareholders of the -3.81% -0.2892 -0.2892
260ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Company after deduction of
non-recurring profit or loss
3. Accounting Data Differences under PRC GAAP and Those under IFRSs
(1) Differences between Disclosed Net Profits and Net Assets in Financial Report in accordance with
International Accounting Standards and Chinese Accounting Standards
□Applicable□Not applicable
(2) Differences between Disclosed Net Profits and Net Assets in Financial Report in accordance with
Domestic Accounting Standards and Chinese Accounting Standards
□Applicable□Not applicable
(3) Explain Reasons for the Differences between Accounting Data Under Domestic and Overseas
Accounting Standards; for Any Adjustment Made to the Difference Existing in the Data Audited by the
Foreign Auditing Agent Such Foreign Auditing Agent's Name Shall Be Clearly Stated.
4. Others
261
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