ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
SHENZHEN PROPERTIES & RESOURCES
DEVELOPMENT (GROUP) LTD.ANNUALREPORT 2022
(Announcement No. 2023-02)
March 2023
1ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Table of Contents
Part I Important Notes Table of Contents and Defin... 3
Part II Corporate Information and Key Financial In... 6
Part III Management Discussion and Analysis..........11
Part IV Corporate Governance.........................44
Part V Environmental and Social Responsibility...... 68
Part VI Significant Events.......................... 71
Part VII Share Changes and Shareholder Information...85
Part VIII Preferred Shares...........................93
Part IX Bonds....................................... 94
Part X Financial Statements..........................95
2ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Part I Important Notes Table of Contents and Definitions
The Board of Directors (or the “Board”) the Supervisory Committee as well as the directors
supervisors and senior management of ShenZhen Properties & Resources Development
(Group) Ltd. (hereinafter referred to as the “Company”) hereby guarantee the factuality
accuracy and completeness of the contents of this Report and its summary and shall be
jointly and severally liable for any misrepresentations misleading statements or material
omissions therein.Liu Shengxiang the Company’s legal representative Cai Lili the Company’s head of
financial affairs and Liu Qiang head of the Company’s financial department (equivalent to
financial manager) hereby guarantee that the Financial Statements carried in this Report
are factual accurate and complete.All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.The Company is subject to the information disclosure requirements for the real estate
industry in the Self-Disciplinary and Regulatory Guideline No. 3 of the Shenzhen Stock
Exchange for Listed Companies—Industry-specific Information Disclosure.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 RMB3.61 (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.
3ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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 2022
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.Urban Renewal Company Shenzhen SZPRD 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 2022
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 2022
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 SZMD Finance Center southwest of junction of Fuzhong Third Road
Office address and Pengcheng 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:
Business combination involving entities under common control.
2021 2022-over-2021
2022 change (%)
2020
Before Restated Restated Before Restated
Operating 3708669046. 4491965643. 4911120528. 4104374646. 4437897011.revenue (RMB) -24.48%85 71 33 02 98
Net profit
attributable to 537664698.69 1003969842. 1025380909. -47.56% 798572121.74 796641256.96
the listed 33 03
7ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
company’s
shareholders
(RMB)
Net profit
attributable to
the listed
company’s
shareholders 390440612.64 983778096.90 983778096.90 -60.31% 788377322.39 788377322.39
before
exceptional
gains and losses
(RMB)
Net cash
generated - -
from/used in
operating 105233103.86 1813313008. 1828979752. 105.75% 385497782.12 363576236.57
activities 58 45
(RMB)
Basic earnings
per share 0.9022 1.6846 1.7205 -47.56% 1.3399 1.3367
(RMB/share)
Diluted
earnings per
share 0.9022 1.6846 1.7205 -47.56% 1.3399 1.3367
(RMB/share)
Weighted
average return 12.37% 24.69% 24.49% -12.12% 23.47% 22.53%
on equity (%)
Change of 31
December 2022
31 December 31 December 2021 over 31 31 December 2020
2022 December 2021
(%)
Before Restated Restated Before Restated
Total assets 15800287610 14581897151 14835846843 12207356912 12487193847
(RMB) 6.50%.40 .76 .78 .54 .17
Equity
attributable to
the listed 4412555547. 4486110790. 4590052057. 3727917440. 3860098688.company’s -3.87%97 39 75 03 11
shareholders
(RMB)
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 2022
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 1255811600.03 732488240.21 1151996154.28 568373052.33
Net profit attributable
to the listed company’s 219440470.15 31361687.56 204943064.95 81919476.03
shareholders
Net profit attributable
to the listed company’s
shareholders before 226479051.98 30171559.07 185140024.51 -51350022.92
exceptional gains and
losses
Net cash generated
from/used in operating -762389016.83 366394785.74 355799959.69 145427375.26
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 2022 2021 2020 Note
Mainly land
Gain or loss on disposal of non-current
assets (inclusive of impairment allowance requisition175644543.02 -62170.29 -322603.77
write-offs) compensation
received
Government subsidies through profit or
loss (exclusive of government subsidies
consistently given in the Company’s
ordinary course of business at fixed 10633227.34 23923655.59 7100657.34
quotas or amounts as per governmental
policies or standards)
9ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Capital occupation charges on non-
financial enterprises that are through 132289.35
profit or loss
Current profit or loss on subsidiaries
obtained in business combinations
involving entities under common control 9596148.16 21251005.70 -1930864.78
from the period-beginning to combination
dates net
Gain or loss on contingencies that do not
arise in the Company’s ordinary course of 70578.79 -2396947.00
business
Gain or loss on fair-value changes on
held-for-trading financial assets and
liabilities & income from disposal of
held-for-trading financial assets and 1300.91
liabilities and available-for-sale financial
assets
Reversed portions of impairment
allowances for receivables which are 19900.00
tested individually for impairment
Non-operating income and expense other
than the above 2448235.99 2915682.88 9089508.74
Other gains and losses that meet the
definition of exceptional gain/loss 277896.27 169262.03 94284.37
Less: Income tax effects 51525180.31 6749597.21 3470226.55
Non-controlling interests effects (net of
tax) 54953.47 -154973.43 -80226.22
Total 147224086.05 41602812.13 8263934.57 --
Particulars about other gains and losses that meet the definition of exceptional gain/loss:
□ Applicable□ Not applicable
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.
10ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Part III Management Discussion and Analysis
I Industry Overview for the Reporting Period
The Company is subject to the information disclosure requirements for the real estate industry in the Self-Disciplinary and
Regulatory Guideline No. 3 of the Shenzhen Stock Exchange for Listed Companies—Industry-specific Information Disclosure.(I) Macro-economic situation and industry development status
In 2022 the Chinese economy was under greater downward pressure due to a contracting domestic demand jarring supply chain
disruptions and a palpable waning of expectations as a result of myriad factors including the US Federal Reserve's fluctuations
with interest rates and a once-in-a-century global metamorphosis. Amidst the rosy developments stemming from regulatory
authorities and the concomitant calibration of demand-supply dynamics and credit landscape the real estate market is besieged by
a transitory adjustment quandary. In an effort to forestall any hazards lurking in the sector policy measures geared towards
ensuring "stable growth" are being expedited. During March a special meeting was held by the Financial Stability and
Development Committee of the State Council where they put forth measures to support the transition towards a new development
model. Throughout this Reporting Period the real estate policy regulation's bedrock principles of "housing is for living not for
speculation" and the "three stabilities" dictum held firm. Encouragingly a multitude of ministries chimed in with their support for
the industry and certain cities enacted novel policies to catalyze the real estate market's steady growth.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 2022 was 1358.37 million square meters nationwide a year-on-year decrease of 24.3%. Furthermore sales
revenue plummeted to RMB13330.8 billion down by 26.7% from the previous year. Newly built residential and second-hand
residential property prices witnessed a lackluster trajectory in the first half of the year followed by a tepid phase in the latter half
with prices continuing their downward trajectory. In sum the new home transactions in the top 100 cities nosedived by a
staggering 40% year-on-year striking their lowest ebb since 2015.New starts weakened and development investment continued to fall. Throughout the year a total investment of RMB13289.5
billion was completed which represents a 10% year-on-year decrease. Negative growth began in April due to significant financial
pressure faced by real estate companies strict pre-sale regulations and low willingness to commence construction. Real estate
enterprises had a low willingness to start construction due to great financial pressure and stringent regulation of advance sales. In
2022 the total area of new construction was 1205.87 million square meters which indicates a year-on-year decrease of 39.4%.
Since April the monthly new construction area has been declining by more than 35% year-on-year for eight consecutive months
representing the largest drop since 2016. The national housing construction area for the year was 9049.99 million square meters
which represents a year-on-year decrease of 7.2%. Additionally the national housing completion area was 862.22 million square
meters indicating a year-on-year decrease of 15%.Land acquisition decelerates as supply and demand decrease to a near-decade low. Real estate companies' overall efforts to
acquire land have slowed down with the total amount of land transactions throughout the year reaching RMB916.6 billion
representing a nearly 50% year-on-year decrease. Moreover the purchased land area decreased by 53.4% year-on-year to 100.52
million square meters. The real estate market's continuous adjustment and financial pressure on companies have resulted in
differentiated market performance with local state-owned assets bottoming out. The government's land supply and the willingness
of real estate companies to acquire land are insufficient leading to a 31.25% year-on-year decrease in transaction volume. To
alleviate the land auction market's overall downturn policies have entered a substantial easing period since April. Local
governments are optimizing land auction rules and releasing high-quality land plots to increase real estate companies' participation
and improve the situation of failed auctions and withdrawals. Despite these efforts the land market sentiment remains generally
low with a premium rate of only 3.0% and a withdrawal rate of 20.3%.
11ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Policy Support Fails to Drive Significant Financial Improvement. Meetings and notices from the China Securities Regulatory
Commission the Shenzhen Stock Exchange and the China Banking and Insurance Regulatory Commission in May mentioned
supporting reasonable financing needs of real estate enterprises. In June the People's Bank of China and the State Administration
of Foreign Exchange proposed the need to timely correct excessive risk-avoidance behavior of financial institutions and maintain
stable real estate financing. 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 RMB2.38 trillion which
represents a decrease of 26.5%. 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 RMB14897.9 billion representing a 25.9%
year-on-year decrease according to data from the National Bureau of Statistics. Although the central government and various
ministries and commissions have continuously released stabilization signals since the second half of the year the growth rate of
funds in place at the end of the year remains unsatisfactory. 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 2022 upholding the fundamental principle that "houses are for living in not for speculating on". Real estate policies have
entered a comprehensive easing cycle with regulatory authorities introducing favorable policies that benefit both the demand and
enterprise sides. The strength of policies has increased allowing local governments to implement policies based on local
conditions. Demand-side policies have been continuously adjusted from the beginning of the year with several heavyweight
policies implemented in the second half of the year significantly increasing support for supply-side policies. In summary there are
three core aspects of the real estate industry policy in 2022: providing financing support to real estate enterprises to alleviate their
financial pressure; supporting individual housing loans to drive market sales recovery; and ensuring timely delivery of properties
to boost market sentiment and improve homebuyers' confidence.The demand-side is primarily focused on land and financial policies. (1) To better meet the reasonable housing needs of
homebuyers several cities in China have relaxed their policies on commercial housing purchases and sales. In January the
National Development and Reform Commission issued a notice promoting consumption and supporting the commercial housing
market. In response in February these cities implemented policies that included reducing down payment ratios lowering
mortgage rates easing housing provident fund loan requirements issuing housing subsidies and relaxing "five limits" policies
such as purchase and lending restrictions.(2) To prevent speculation and ensure that houses are primarily used for living credit
supervision has been strengthened and measures to crack down on illegal funds inflow into the real estate market have been
strictly enforced. This is to prevent operating loans from entering the market. (3) The sales prices of commodity homes have
stabilized with first-tier cities remaining stable month-on-month since the second quarter and second- and third-tier cities
stabilizing after reaching their lowest point. (4) The ongoing reductions in interest rates have proved to be advantageous. In May
the People's Bank of China and the China Banking and Insurance Regulatory Commission announced an adjustment in the
minimum interest rate for first-time homebuyers' commercial personal housing loans which was set no less than 20 basis points
below the corresponding period's loan market quotation rate. Furthermore at the end of September some cities also lowered the
minimum interest rate for these loans. Provident fund loans with repayment terms exceeding five years were also impacted by the
interest rate cuts resulting in a reduction to 3.1%.The supply side focused on land and financial control. (1) In terms of land the completion rate of the 2022 land supply plan is
relatively low. To attract real estate companies to bid local governments are actively optimizing and adjusting land auction rules
and land supply structures with central and state-owned enterprises becoming the mainstream in land acquisition. Additionally
local urban investment platforms are continuing to emerge while private enterprises are limited by credit challenges and financial
pressures leading to a pause in their investments.(2)In early November the People's Bank of China and the China Banking and
Insurance Regulatory Commission issued a notice on "Ensuring the Stable and Healthy Development of the Real Estate Market" in
terms of policies. This notice includes 16 specific measures such as maintaining stable and orderly real estate financing actively
12ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
providing financial services for "building payment upon completion" cooperating in the risk disposal of distressed real estate
enterprises protecting the legitimate rights and interests of housing finance consumers in accordance with the law adjusting some
financial management policies in phases and increasing financial support for housing rental. At the end of November the China
Securities Regulatory Commission outlined five measures aimed at adjusting and optimizing equity financing for listed real estate
companies. These measures include restoring mergers and acquisitions restructuring and supporting financing for real estate-
related listed companies as well as restoring refinancing for listed real estate enterprises and real estate-related listed companies.In contrast financial regulatory authorities such as the China Banking and Insurance Regulatory Commission primarily relaxed
regulations throughout the year. Meanwhile local governments and housing construction departments strengthened their
supervision to ensure property developers deliver homes on schedule.In 2022 provinces and cities across China issued over a thousand real estate control policies reaching a peak in recent years. The
regulation of the real estate market continues to improve and upgrade with the pace and intensity of policy tightening significantly
increasing since April. Looking ahead to 2023 the central government will continue to adhere to the general principle of "housing
is for living not for speculation" and strive to achieve the "three stability" targets. 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. The concept of "completion
guarantee" - an assurance that properties will be finished prior to remuneration - continues to hold the attention of industry
insiders. As such a rekindling of the real estate market appears to be on the horizon.(III) Regional market landscape
From the perspective of regional markets Shenzhen's economy held steadfast in its fortitude in 2022 even while imposing
stringent real estate regulations. Boosting market confidence were accompanying factors such as "completion guarantee" and a
dip in the first-home mortgage interest rate. As the year dawned Shenzhen unfurled the "14th Five-Year Plan for Housing
Development in Shenzhen" which maps out a five-year blueprint to supply 350000 units of commercial housing and 540000 units
of public housing. During the "Golden September and Silver October" interlude the number of newly sold residential units in
Shenzhen eclipsed 3000 units for two consecutive months outpacing the average level registered in the first half of the year.Toward the fag end of October the Ministry of Finance released the "Implementation Opinions on Supporting Shenzhen to
Explore and Innovate Its Financial Policy System and Management System" underscoring the central government's bolstered
support to alleviate Shenzhen's housing supply and demand imbalance. As a vanguard of China's reform and opening-up policy
Shenzhen continues to play a pivotal role in the real estate industry's major strategic metamorphosis decision-making process.(IV) The situation and tasks facing the Company
From the perspective of SZPRD many of the difficulties pain points and blockage points of the projects under construction have
basically been cleared and the conditions are in place for the Group to make great progress. The tight situation of large investment
and low output in the current period is expected to continue until the second half or even the end of 2023. Therefore project
construction sales payment collection and capital amplification will become the most important tasks in 2023 and the ability to
execute projects turnaround capacity and operation and management capabilities will continue to be decisive factors in the Group's
medium to long-term development.(V) Industry position of the Company
SZPRD arises together with Shenzhen's reform and opening up and devotes 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 title of "2022
Shenzhen Top 500 Enterprises" and ranked 187th on the list. ITC Property Management a subsidiary of the Company won the
following awards: "2022 Leading State-owned Enterprises in Property Management for Industrial Parks in China" "2022 Top 100
China Property Service Enterprises in Comprehensive Strength" "2022 Top 50 China State-owned Property Service Enterprises in
Comprehensive Strength" and "2022 China Property Service Brand Characteristic Enterprise - A World-leading Property
Management Ecological Operator". The Shenzhen International Trade Center Building was listed in the first group of Shenzhen
13ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
historical buildings announced by the People's Government of Shenzhen Municipality. The historical exhibition of Shenzhen
International Trade Center was selected as a case for the development and utilization of national economic and technological archives
resources in 2021 by the National Archives Administration of China. 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 despite the changes in the real estate industry the Company gained a comparative advantage with stable
operation status and good financial position seized the opportunities of the land market. The Company has triumphed in its
partnership with Yangzhou Tourism Development Property Co. Ltd. securing the first and second land parcels in the Yangzhou
Shouxihu Science and Technology Innovation City initiative. This landmark achievement not only marks the Group's foray into the
"urban-rural integration" terrain beyond its headquarters but also acts as a potent assurance of its expansion plans in the Yangtze
River Delta area. The victory also paves the way for the Group to augment its land reserves and propel sustainable development in
consonance with the "14th Five-Year Plan" phase.II Principal Activity of the Company in the Reporting Period
The Company is subject to the information disclosure requirements for the real estate industry in the Self-Disciplinary and
Regulatory Guideline No. 3 of the Shenzhen Stock Exchange for Listed Companies—Industry-specific Information Disclosure.(I) Core Business Overview
Established in 1982 the Company was originally known as "Luohu Engineering and Construction Headquarters" and renamed
"Shenzhen Municipal Property Development Corporation" in August 1985. The Company was determined as the second batch of
pilot units for joint-stock reform of state-owned enterprises in 1988. Approved by the municipal government the Company renamed
to ShenZhen Properties & Resources Development (Group) Ltd. in 1990. The stock of the group company (stock name: SZPRD A/B;
stock code: 000011 200011) was officially listed in Shenzhen Stock Exchange in March 1992.The Company contracted and built Shenzhen International Trade Center Building as Party A and created planned and organized the
world-famous "Shenzhen Speed". The building was the place where Chairman Deng Xiaoping gave talks in his inspection to the
south. SZPRD came into being because of the building and has risen amid the Reform and Opening up campaign. Emerging and
growing together with Shenzhen a city of miracles the Company has been “a loyal practitioner of the spirit of the ox” and overcome
difficulties in proposing new services in the new era. 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".As 2022 heralds the 40th anniversary since its inception and the 30th anniversary since its listing SZPRD traverses down memory
lane recollecting its varied journey punctuated with challenges and triumphs. Witnessing the meteoric rise of Shenzhen city the
Group has transitioned from its former "Shenzhen speed" avatar to its current iteration of "Shenzhen quality." Additionally 2022
inaugurates the first year for the Group's periodic performance adjustment phase. During the Reporting Period facing the deep
regulation and control in real estate the Company faced up to the difficulties and continued to make efforts in four business
sectors including industry-city space development property management services industrial ecosystem operation and main
business ecosystem investment in its main business. The Company endeavored to further consolidate and highlight its advantages
of industry-city integration and the whole industry chain through expanding the main business and making breakthroughs in other
businesses.
1. Industrial & urban space development
14ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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
the Urban Renewal Company strengthen capital operation via the listing platform and make a reasonable layout of the city space
development segment. In the Reporting Period SZPRD made greater efforts for land acquisition in this segment. For instance it
steadily advanced the development projects inside and outside Shenzhen accelerated the sales of projects in Xuzhou and Yangzhou
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". Amidst the Reporting Period ITC Property Management augmented its realm
through self-reliant development and mergers and acquisitions culminating in the administration of a 35 million square meters of
property. The segment dedicated to industrial parks outstripped expectations surpassing 10 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
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
15ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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 2022
As a crucial year for the "14th Five-Year Plan" and the Group's 40th anniversary since its establishment and 30th anniversary since
listing 2022 holds significant importance. The Company concentrates on implementing key work deployments established at the
beginning of the year and promotes long-term sustainable development by enhancing overall efficiency guided by the principle of
"long-term targets medium-term expectations and short-term results". The Real Estate Company took expansion as the goal and
made efforts to seek a breakthrough in project expansion. The Property Management Company took strategic transformation as the
guide to enhance the empowerment value and brand value. The Commercial Operation Company aimed at improving quality and
efficiency and continued to innovate the operation and management mode and each business segment has maintained a stable and
healthy development trend. As at the end of the Reporting Period the total assets of the Group stood at approximately RMB15.8
billion. During the year the Group recorded operating revenue of more than RMB3.7 billion and a gross profit of more than
RMB750 million successfully achieving the major economic indicators for the year.First the industry-city space development segment achieved outstanding results and project expansion was fruitful. The real
estate business recorded operating revenue of RMB1914 million accounting for 51.6% of the total operating revenue. During the
Reporting Period the Group actively participated in the fiercely competitive land auction market successfully winning the first and
second batches of land plots for the Yangzhou Slender West Lake Science and Innovation City urban-industry integration project
adding approximately 230000 square meters to the Group's land reserves. This project provides solid support for the Group's future
sustainable development deep cultivation in the Yangtze River Delta region and strengthening of the urban-industry strategic layout.Moreover 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. The projects in Bangling Guangming Humen and Yangzhou were
efficiently and orderly developed with the refined management system for the entire real estate project development process taking
shape. Furthermore the Guanlan Bangling project the first urban-industry integrated project in the Longhua Guanlan area that the
Company has implemented through a market-oriented approach obtained confirmation of the main body for the first and second
phases completed the bidding for the total contract engineering and the demonstration area scheme. The project development has
gradually transitioned from the early stage to substantial construction and sales stages. Projects such as Yulin Lushan Tianjun
Industrial Park Baolu Plot Fuyuan Industrial Zone Huiyang Danshui and Xuzhou Phase II have also made significant breakthrough
progress.Second the property management segment grew steadily and continued to accelerate market expansion. The operating
revenue from property management was RMB1667 million throughout the year accounting for 44.95% of the total operating
revenue remaining the Group's second-largest revenue source and increasing its share. During the Reporting Period efforts were
made to actively expand property management projects with the managed area exceeding 35 million square meters. This resulted
in winning honors such as "Top 100 Comprehensive Strength of Chinese Property Service Enterprises in 2022" continuously
enhancing brand value and reputation. Furthermore the operating performance of the International Trade Science and Technology
Park exceeded the promised net profit by nearly RMB28 million successfully fulfilling the three-year performance commitment of
mergers and acquisitions. The management rights switch and integration of the five newly acquired companies proceeded
16ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
smoothly and orderly. Efforts were made to undertake diverse formats such as hotels and sports venues for the first time.Concurrently inventory and profit and loss analysis of managed projects were carried out formulating a series of measures to
improve quality and efficiency providing scientific and referable experiences and models for subsequent project acquisition and
operation. Additionally efforts were made to actively promote upstream and downstream mergers and acquisitions in the
industrial chain strategically investing in China Construction Science and Industry Group's smart parking company. The first
phase of the International Trade Cloud 2.0 digital platform was successfully constructed and deployed further promoting the
digital and intelligent transformation of the property management sector. Various measures were taken to improve labor
efficiency exploring the establishment of market-oriented expansion incentive mechanisms implementing the Market Expansion
Reward Management Measures and other systems and actively promoting the coordination and cost management of the security
business.Third quality and efficiency were improved and core operating capabilities were cultivated for the industrial ecological
operation and other segments. The operating revenue from property rental throughout the year was RMB128 million accounting
for 3.45% 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 the industrial operation sector cultivated core operational capabilities through multiple
paths such as improving asset quality and efficiency and exploring the establishment of incremental sharing mechanisms. The
company made all-out efforts to stabilize tenants rents and expectations with a property leasing rate of approximately 94.9% and
rent collection rate of approximately 97.3%. Additionally the company actively implemented rent reduction policies resulting in a
cumulative reduction of rent by about RMB50.36 million benefiting 705 tenants and demonstrating the responsibility of state-
owned enterprises. Furthermore the company accelerated the transformation and upgrading of existing assets and revitalized their
utilization after completing the disposal of 17 low-efficiency assets. An estimated increase of about RMB55 million in revenue is
expected. In terms of industrial investment promotion the Group released the "Industrial Operation White Paper" within the year
building a "1+2+3+N" industrial strategy system through multiple channels. The company also explored the in-depth property
development strategy and vigorously promoted investment promotion work for Bangling Yangzhou and International Trade Mall
upgrade projects.New additions to the land bank:
Considerati
Planned Floor area How the The Total land on of theName of land lot Location use of Site area with plot land is Company’s price Company’sor project land （㎡） ratio obtained interest (RMB’000 interest（㎡） 0) (RMB’000
0)
Pingshan
Village Commer
Land Lot No.Hanjiang cial and
GZ342 in 195633 305496.40 Open 67.00% 83535.29 55968.64
District residenti market
Yangzhou City
Yangzhou al
City
Pingshan
Village Commer
Land Lot No.Hanjiang cial and
GZ399 in 35979 64762.20 Open 67.00% 17917.54 12004.75
District residenti market
Yangzhou City
Yangzhou al
City
Cumulative land bank:
Name of project/area Site area（0000㎡） Floor area 0000 Floor area available for（ ㎡） development（0000㎡）
17ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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 Cumulat
Time for % Planned
area that ive floor
Ci floor complet area that Estimate Cumulat
ty/ The commen de ed d total ive
re Name of Locati Usage Company’ cement ve
% that has area has
project on of lo completed
Site area with construction in complet
investm investme
gi s interest construc pe construction
（㎡） plot ed ent nt
on tion d ratio
the
Current construc
(RMB’0 (RMB’0
tion 000) 000)（㎡） Period
（㎡）
（㎡）
Main work
U completion
nd filing
Sh
en Fuhui Futian
er completed
Huayua Distric Resident 91133.0 77396.0zh ial 100.00% 2018.12
co
ns and fine 4274 33430 0 0 0 0
en n t tru decoration
cti completed
on and
accepted
Phase I is
going
through land
use approval
formalities
Phase II has
Resident U earthwork
ial nd foundation
Sh Guanlan Longh commer er
pit
en Banglin ua cial supporting 694150. 468620.zh Distric apartme 69.00% 2020.10
co
ns 68298 433640 0 0g and pile 00 22en t nts and tru foundation
industria cti
l on under
construction
and certain
land lot is
going
through
main body
construction
All
engineering
U piles
nd completed
Sh Guang er basement
en Yutang ming Resident co 258818. 179227.100.00% 2022.03 ns (±0.000) 14901 81960 0 0zh Shangfu Distric ial 56 88
tru completeden t
cti and 4 floors
on of main
body
completed
D Sea Bay Hume Resident Basement 321173. 236156.
100.00% 2022.03 Und 51687 113713 0 0on Garden n ial topped out 93 79
18ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
gg Town er ±0.000 floor
ua co beams
n nstru completed
Ci cti for main
ty on body tower
building
completed
to 6/F
Ya Industri To
ng Yangzho Pingsh al be
zh u an office cons 377479. 86396.667.00% 2023.03 - 231612 370258 0 0
ou Shouxih Villag and tru 00 3
Ci u project e residenti ct
ty al ed
X C
uz Banshan Tongs o
ho Yujing han Resident m 24700.0 22964.0
u (Phase Distric ial 100.00% 2019.03 pl 100.00% 31537 22795 22795 22795 0 0
Ci II) t et
ty ed
Sales status of major projects:
Pre- Pre-
Floor Floor area sale/sale Floor sale/sale
The area Floor Cumulativ pre- s area s
City Name Compa with area e pre- sold/sold revenue Cumulativof availabl generate e settled settled
revenue
/regi projec Location Usage ny’s
plot sold/sold in the in the settled
on t interes
ratio e for in the floor areasale floor area Current Current ( ) Current
in the
t （㎡ （㎡） Period ㎡ Period Current
（㎡） Period Period） （㎡） (RMB’0 （㎡） (RMB’0
000)000)
Golde Intersection
n of Futian Residential
She Collar South Road studio
nzhe ’s and Binhe apartments 100.00 1338 125231 119004.9 110446. 119004.5 18643.9 159276.12479.71
n Resort Road in and % 00.60 .07 9 58 1 1 00
apart Futian commercial
ments District
Intersection ResidentialYan Hupan
gzho Yujing of Shouxihu
units shops
Road and apartments 100.00 3614 48870.u Phase parking 43023.81 200.94 77.30 43023.81 200.94 70.92% 1.28 98
City I HangouRoad garages andlots
Bansh
Xuz an 6 Huashan
hou Yujing Road 100.00 2279 21720. 21660.4 25308.3
City Phase Tongshan
Residential 21720.72 - - 21660.46
%4.767268
II District
Don Songh Dalang
ggua u Town Residentialand 100.00 1471 140911 140911.0 149349.8n Langy Dongguan 108.00 88.34 108.00 84.13commercial % 39.96 .00 0 4City uan City
Residential
Yan Hupan Intersection
gzho Yujing of Shouxihu
units shops
Road and apartments 100.00 5693 73121.u Phase parking 70050.02 1716.05 2481.69 70030.91 1716.05 2339.25
City II Hangou
%5.7596
Road garages andlots
Rental status of major projects:
Name of project Location Usage The Rentable area Cumulative AverageCompany’s （㎡） rented area occupancy
19ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
working （㎡） rate
interest
Xi Apartments Apartments for
(Longyuan) Shenzhen long-term rental 100.00% 3967.05 3967.05 100.00%
XiApartments (Longhua) Shenzhen Apartments forlong-term rental 100.00% 1609.42 1609.42 100.00%
Xi Apartments (Xinhu) Shenzhen Apartments forlong-term rental 100.00% 1600.00 1600.00 100.00%
Donghu Apartments Shenzhen Apartments forlong-term rental 100.00% 8253.80 6163.71 74.68%
Food Court in the
International Trade Center Shenzhen Commercial 100.00% 4152.47 1534.30 36.95%
Fumin Complex Shenzhen Commercialapartments 100.00% 5899.00 4771.92 80.89%
Tower A of Wenjindu Port
Building Shenzhen Office building 75.00% 5884.30 5619.30 95.50%
Haiwai Lianyi Building Shenzhen Commercialunits and offices 75.00% 9313.78 9313.78 100.00%
Anhua Building Shenzhen Offices 75.00% 1414.00 1414.00 100.00%
Pengfu Building Shenzhen Offices 75.00% 6494.00 6494.00 100.00%
Jinfu Building ShenzhenShenzhen Commercial 75.00% 1702.70 1652.70 97.06%
Jinfu Building ShenzhenShenzhen Commercial 100.00% 567.56 567.56 100.00%
Fuxing Garden Shenzhen Residential/commercial 75.00% 5787.22 5787.22 100.00%
Fuxing Garden Shenzhen Commercial 100.00% 1417.15 1417.15 100.00%
Plant area in Tangxia Dongguan
Town Dongguan City City Plant 75.00% 1782.00 1782.00 100.00%
Pacific Business Building Shenzhen Commercialunits/offices 75.00% 3149.03 2385.42 75.75%
Pacific Business Building Shenzhen Commercialunits/offices 15.00% 14888.76 12344.33 82.91%
Kangti Building Shenzhen Commercialunits/offices 75.00% 2095.87 1925.47 91.87%
Kangti Building Shenzhen Commercialunits/offices 15.00% 1146.81 1146.81 100.00%
Lyuhua Building Shenzhen Commercial andresidential 75.00% 7106.95 6869.19 96.65%
Shops on the ground floor
of Tower 48 in Lianhua Shenzhen Shops 75.00% 1000.34 1000.34 100.00%
North Village
Apartments and
Haonianhua Building Shenzhen commercial 100.00% 1939.56 1939.56 100.00%
units
Apartments and
Haonianhua Building Shenzhen commercial 75.00% 2277.90 2240.73 98.37%
units
Hostel 2 at Yuxin School Shenzhen Hostel 75.00% 3000.00 3000.00 100.00%
Kaifeng Garden in
Shangmeilin Shenzhen Residential 100.00% 1306.82 922.44 70.59%
Fuyuan Industrial Zone Shenzhen Plant area 75.00% 47131.40 47131.40 100.00%
Tonglu Industrial Zone Shenzhen Plant area 100.00% 76886.26 73408.48 95.48%
Jiangling Industrial Zone Shenzhen Plant area 75.00% 10396.64 10396.64 100.00%
Zone 21 Shenzhen Commercial/offices 75.00% 9514.30 9434.30 99.16%
Baoli Community Shenzhen Residential 75.00% 9020.07 8208.79 91.01%
Songgang Plant Shenzhen Plant area 75.00% 5700.00 5700.00 100.00%
20ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Longbu Plant Shenzhen Plant area 75.00% 7471.36 7471.36 100.00%
Gonglu Building in
Huanggang Shenzhen Offices 75.00% 4599.72 4552.84 98.98%
Yuetong Complex Shenzhen Offices 75.00% 3044.00 3044.00 100.00%
Department Store Plaza Shenzhen Offices 33.00% 12751.15 12751.15 100.00%
Southern Securities
Building Shenzhen Offices 33.00% 8809.80 2194.82 24.91%
Building 409 Sangda
Industrial Zone Shenzhen Plant area 33.00% 3309.20 3309.20 100.00%
Mianshui Studio
Apartment Shenzhen Apartment 33.00% 3440.12 3440.12 100.00%
Xiangfu Building Shenzhen Commercial 33.00% 3109.40 3109.40 100.00%
Primary land development:
□Applicable□ Not applicable
Financing channels:
Unit: RMB
Financin
g cost Maturity structure
Financing Ending balance of range/av
channel financings erage
financin Within 1 year 1-2 years 2-3 years Over 3 years
g cost
Bank
loans 3809915668.00 4%-6% 126500000.00 2999400000.00 523600000.00 160415668.00
Total 3809915668.00 4%-6% 126500000.00 2999400000.00 523600000.00 160415668.00
Development strategy and operating plan for the coming year:
Under the macro-economic environment of "triple pressure" in 2023 and amid the overall downward development trend of the
conventional real estate market SZPRD will 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 reserves SZPRD plans to expand and boost its land reserves through market competition and capital operations.The group's focus will remain on the Guangdong-Hong Kong-Macao Greater Bay Area the Yangtze River Delta and other
regions with promising economic development prospects. To expedite project execution the group will actively facilitate market-
oriented bidding auctioning and listing as well as pursue industrial land acquisition urban renewal and project cooperation. To
promote both construction and sales repayment SZPRD will accelerate project development in 2023. The group will prioritize
ongoing project design management and approval work showcasing high-quality and high-standard demonstration areas and
image displays for each project. While ensuring quality safety and environmental protection the group will comprehensively
advance project construction by proactively responding to uncertain market conditions and focusing on the core goal of "cash
inflow." To coordinate development and business operations effectively the group's headquarters will work hard on "speeding up
expanding empowering and producing results." The group will deepen the management functions of the platform company
continuously enhance development capabilities in product planning project operation accelerated destocking and centralized
procurement establish unified standards deepen lean management and further strengthen the overall advantages of the group's
real estate sector. To begin with it is essential to coordinate the development of major and complex projects. This involves
expediting the construction and development of various projects such as the Humen Coastal Harbor Project Guangming Yutang
21ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Shangfu Project Guanlan Bengling Urban Renewal Project and Yangzhou Project. Additionally efforts should be made to
facilitate the timely completion and acceptance of the second phase of Fuchang's fine decoration. The second objective is to
promote the preliminary work of urban renewal projects and ensure the group's future success. The Pingshan Tianjun Industrial
Park Project should aim to complete the signing of the demolition memorandum and demolition compensation agreement while
the Fuyuan Industrial Park Project should focus on updating the unit scope unit change plan approval and special planning
preparation. The third priority is to enhance marketing and trading capabilities to meet sales targets. Opportunities in the market
should be seized to promote the sales liberalization of residential properties in Humen Guangming and Bengling projects finish
delivery of the second phase of Fuchang and other works.For details please refer to "XI Prospects" in “Part III Management Discussion and Analysis" in the 2022 annual report. The abovebusiness plan and business objectives do not represent the listed Company’s profit forecast for 2023. 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.Provision of guarantees for homebuyers on bank mortgages:
□Applicable □ Not applicable
As a usual practice for real estate developers the Company has been providing guarantees and security deposits for its homebuyers
on their bank mortgages. As at 31 December 2022 security deposits for such outstanding guarantees amounted to
RMB1131041.58 which will be returned upon the expiry of the guarantees i.e. when the relevant homebuyers paid off their bank
mortgages.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 Disinv
of actual
investment peak of the Cumulativ estme investmentproject entity (RMB’00 e income amount and
00) amount project funds nt distributed
income
Urban Mandatory investment
Renewal of entities (including
Bangling directors and senior 2647.00 66.18% N/A 0 None N/A
Section at management)
Guanlan
Street Voluntary investmententities 1353.00 33.82% N/A 0 None N/A
Note: Since this is an ongoing project the peak of the project funds cumulative income and disinvestment are unknown. For
details please refer to the relevant announcements disclosed by the Company on www.cninfo.com.cn dated 9 November 2019.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
22ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
years the Group continues to innovate institutional mechanisms deepen internal reforms and actively benchmark with industry
models for market-oriented operation which significantly stimulates the vitality and momentum of the Group's high-quality
development. In recent years the Guanlan Bangling project pioneered the cooperation between state-owned enterprises and private
enterprises in developing urban renewal projects marking the first fully market-oriented urban renewal project in the history of the
Group and took the lead in implementing the follow-on investment system for urban renewal projects in the city's state-owned
capital system. 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 Guanlan Bangling urban renewal project the Group's advantages of city-industry complex
development products have been highlighted and with the implementation of a series of urban renewal projects and industrial
projects the advantages of city-industry complex will be further consolidated and enhanced.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. It was listed in Fortune Global 500 companies in 2022 with operating revenue of
RMB242.5 billion and ranked 372nd on the list 24 places higher than that in 2021. Relying on the controlling shareholder's
advantages in the whole industrial 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
20222021
As % of total As % of total Change
Operating revenue operating revenue Operating revenue operating revenue (%)
(%)(%)
Total 3708669046.85 100.00% 4911120528.33 100.00% -24.48%
23ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
By operating division
Property
development 1913674526.31 51.60% 3131113534.70 63.76% -38.88%
Property
management 1666961878.32 44.95% 1603746855.20 32.66% 3.94%
Property rental 128032642.22 3.45% 176260138.43 3.59% -27.36%
By product category
Property
development 1913674526.31 51.60% 3131113534.70 63.76% -38.88%
Property
management 1666961878.32 44.95% 1603746855.20 32.66% 3.94%
Property rental 128032642.22 3.45% 176260138.43 3.59% -27.36%
By operating segment
Shenzhen 3122667234.12 84.20% 4465808268.81 90.93% -30.08%
Other 586001812.73 15.80% 445312259.52 9.07% 31.59%
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 revenue Cost of sales Gross profit
YoY change YoY change in YoY change in
margin in operating cost of sales gross profitrevenue (%) (%) margin (%)
By operating division
Property
developm 1913674526.31 433443568.87 77.35% -38.88% 0.22% -8.84%
ent
Property
managem 1666961878.32 1441477771.44 13.53% 3.94% 10.53% -5.15%
ent
By product category
Property
developm 1913674526.31 433443568.87 77.35% -38.88% 0.22% -8.84%
ent
Property
managem 1666961878.32 1441477771.44 13.53% 3.94% 10.53% -5.15%
ent
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
24ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Operating division Item Unit 2022 2021 Change (%)
Sales volume m2 14396.70 37622.78 -62.00%
Property
development Output m
2495583.11262098.0089.00%
Inventory m2 28008.22 35157.25 -20.00%
Any over 30% YoYmovements in the data above and why:
□Applicable □ Not applicable
The sales volume dropped as a result of the decreased properties available for sale a weakening market etc.; and the output
increased due to the start of construction of a number of real estate projects.
(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
20222021
Operating
division Item As % of total As % of total Change (%)
Cost of sales cost of sales Cost of sales cost of sales
(%)(%)
Property
developmen 433443568.87 21.90% 432501558.96 23.67% -1.77%
t
Property
management 1441477771.44 72.85% 1304193657.50 71.37% 1.48%
Property
rental 103856280.91 5.25% 90687606.72 4.96% 0.29%
Note:
N/A
(6) Changes in the Scope of Consolidated Financial Statements for the Reporting Period
□Yes □ No
See “VIII Changes to the Consolidation Scope” in “Part X Financial Statements” in this Report.
(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:
25ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Total sales to top five customers (RMB) 410823986.62
Total sales to top five customers as % of total sales of the
Reporting Period (%) 11.08%
Total sales to related parties among top five customers as % of
total sales of the Reporting Period (%) 8.18%
Information about top five customers:
No. Customer Sales revenue contributed for As % of total sales revenuethe Reporting Period (RMB) (%)
1 Corporation 1 303186237.98 8.18%
2 Corporation 2 46010450.34 1.24%
3 Corporation 3 24265146.78 0.65%
4 Corporation 4 20413436.28 0.55%
5 Natural person 1 16948715.24 0.46%
Total -- 410823986.62 11.08%
Other information about major customers:
□Applicable□ Not applicable
Major suppliers:
Total purchases from top five suppliers (RMB) 476983727.17
Total purchases from top five suppliers as % of total purchases
of the Reporting Period (%) 33.50%
Total purchases from related parties among top five suppliers
as % of total purchases of the Reporting Period (%) 8.11%
Information about top five suppliers:
No. Supplier Purchase in the ReportingPeriod (RMB) As % of total purchases (%)
1 Corporation 1 237055828.36 16.65%
2 Corporation 2 115448234.35 8.11%
3 Corporation 3 77574607.34 5.45%
4 Corporation 4 25617258.95 1.80%
5 Corporation 5 21287798.17 1.50%
Total -- 476983727.17 33.50%
Other information about major suppliers:
□Applicable□ Not applicable
3. Expense
Unit: RMB
2022 2021 Change (%) Reason for any significant change
Selling expenses 53541997.78 73372016.02 -27.03% Decrease in commissions paid forsales agents
Administrative
expenses 329991655.74 323975355.61 1.86%
Finance costs 50571183.83 5361667.33 843.20% Decrease in interest income
R&D expenses Acquisition of FMC in September3244129.11 2171797.80 49.38%
2021
26ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
4. R&D Investments
□Applicable □ Not applicable
Major
R&D Purpose Progress Objectives Expected impact on the
program Company
It fully supports all kinds of project-level business
such as engineering customer service
environment safety order quality etc. as well as
To meet the the Group’s control level business. Specific Add full view of
management needs as functional modules include task management operations and digital
Property
an integrated property plan management demand management charge management laying
Manageme
management company Delivered management material inventory quality the foundation for
nt System
as well as a management personnel management and other more and better access
(PMS)
professional property functions and provides internal PC terminal and to the consumer market
service provider APP terminal as well as mini-app for customers. in the future
Decision analysis can be further customised
according to the actual needs of the customer with
more analytical reports and large display screens.It realises that the
assets of equipment
and facilities can be
accounted for the
quality of operation
and maintenance
services can be
managed the risks of It supports full coverage of facility and equipment
facilities can be control activities throughout the building's
controlled and the lifecycle including the entire process of handover Add full view of
data for decision- and takeover (customised function) operation operations and digital
Facility
making can be relied maintenance repair renovation and end-of-life management laying
Manageme
on and through the Delivered disposal and supports IOT integrated operation the foundation for
nt System
continuous monitoring operation and maintenance work more and better access
(FMS)
accumulation of management basic settings intelligent analysis to the consumer market
platform data it and other functions. The local intelligent in the future
promotes the subsystems/equipment collects data through the
continuous edge computing gateway.optimisation of
management
standards and
construction standards
to realise true digital
operation and
maintenance.Details about R&D personnel:
2022 2021 Change (%)
Number of R&D personnel 37 30 23.33%
R&D personnel as % of total
employees 0.40% 0.39% 0.01%
Educational background
Bachelor’s degree 23 11 109.09%
Master’s degree 4 0 -
Junior college 10 19 -47.37%
Age structure
27ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Below 30 24 9 166.67%
30~4011922.22%
Over 40 2 12 -83.33%
Details about R&D investments:
2022 2021 Change (%)
R&D investments (RMB) 3244129.11 2171797.80 49.38%
R&D investments as % of
operating revenue 0.09% 0.04% 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 2022 2021 Change (%)
Subtotal of cash generated
from operating activities 4526054341.31 6246168443.05 -27.54%
Subtotal of cash used in
operating activities 4420821237.45 8075148195.50 -45.25%
Net cash generated from/used
in operating activities 105233103.86 -1828979752.45 -105.75%
Subtotal of cash generated
from investing activities 197490121.81 234973.91 83947.68%
Subtotal of cash used in
investing activities 45114342.34 29143961.50 54.80%
Net cash generated from/used
in investing activities 152375779.47 -28908987.59 -627.09%
Subtotal of cash generated
from financing activities 303349674.44 2140000.00 14075.22%
Subtotal of cash used in
financing activities 963797633.48 575922103.76 67.35%
Net cash generated from/used
in financing activities -660447959.04 -573782103.76 15.10%
Net increase in cash and cash
equivalents -398048377.77 -2433157872.42 -83.64%
Explanation of why any of the data above varies significantly:
□Applicable □ Not applicable
(1) Net cash generated from operating activities increased year on year primarily driven by the decreased land acquisition and tax
expenditures in the Reporting Period.
(2) Cash generated from investing activities increased year on year primarily driven by the receipt of the compensation for the
requisition of the land at Baolu in the Reporting Period.
28ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
(3) Cash generated from financing activities increased year on year primarily driven by new bank borrowings in the Reporting
Period.
(4) Cash used in financing activities increased year on year primarily driven by the payment for an equity acquisition involving
entities under common control in the Reporting Period.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 RMB105233103.86 representing a big difference
from the net profit of RMB529340607.96 primarily driven by the receipt of the compensation for the requisition of the land at
Baolu and an increase in land bank expenditure 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
Return on investment 1981330.90 0.26% Share of profits of jointventures Yes
Purchase of held-for-trading
Gain/loss on changes
in fair value 117082.19 0.02% financial assets in the Not
Reporting Period
Asset impairments -528430.23 -0.07% Inventory valuationallowances Not
Miscellaneous confiscatory
and penalty income and write-
Non-operating income 7198004.28 0.96% off of payables that have been Not
not able to be settled for a
long time
Non-operating expense 2556893.74 0.34% Payments for liquidateddamages and fines Not
Credit impairment loss -17395139.90 -2.32% Allowances for doubtfulaccounts Not
Receipt of the compensation
Gain on disposal of
175810605.44 23.42% for the requisition of the land Not
assets
at Baolu
VI Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
31 December 2022 1 January 2022 Chang
e in Reason for any
percent significant
Amount As % of total As % of totalassets Amount assets age change
(%)
Monetary Payment for
assets 1517528893.83 9.60% 2280821442.11 15.37% -5.77% land
Increased
Accounts property
receivable 419933915.30 2.66% 293985139.93 1.98% 0.68% management
fees receivable
29ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Contract
assets 1094632.90 0.01% 0.00 0.00% 0.01%
Inventories 10975334223.37 69.46% 9125134062.27 61.51% 7.95% Increased landbank
Investment
property 405762739.18 2.57% 459204609.35 3.10% -0.53%
Long-term Increased
equity 79781437.31 0.50% 50360681.37 0.34% 0.16% returns from
investments joint ventures
Fixed assets Reclassification82745172.12 0.52% 114155590.40 0.77% -0.25%
of assets
Construction
0.00%0.00%0.00%
in progress
Right-of-use
assets 70168415.65 0.44% 71472680.73 0.48% -0.04%
Short-term
borrowings 0.00% 0.00% 0.00%
Operating
Contract
liabilities 920828040.81 5.83% 1374165809.40 9.26% -3.43% revenue
carryforwards
Long-term
borrowings 3618782344.00 22.90% 3524500000.00 23.76% -0.86% New bank loan
Lease
liabilities 77963283.55 0.49% 83081182.89 0.56% -0.07%
Recovery of
certain current
accounts and
Other
receivables 639903523.33 4.05% 926361533.14 6.24% -2.19% increased
allowances for
doubtful
accounts
Deferred
income tax Increased land1383050586.04 8.75% 1279816590.32 8.63% 0.12%
assets VAT provisions
Prepayment for
equity
acquisition
transferred to
Other non- long-term
2750873.080.02%45571997.850.31%-0.29%
current assets equity
investments as
acquiree has
been
transferred
Accounts Increased
608283388.52 3.85% 351894812.23 2.37% 1.48% payables for
payable engineering
Receipt of
cooperation
Other funds from
1515085832.459.59%1027622090.946.93%2.66%
payables cooperation
party Yangzhou
Wuhe
Indicate whether overseas assets account for a higher proportion of total assets.□Applicable□ Not applicable
30ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
2. Assets and Liabilities at Fair Value
□Applicable □ Not applicable
Unit: RMB
Gain/loss Impair
on fair- Cumulative ment
value fair-value allowa Purchas
Sold
Item Beginning
in the
amount changes in changes
nce ed in the
for the Reportin Report
Other Ending
the charged to ing changes amount
Reporting equity Report g Perioding PeriodPeriod Period
Financial assets
4. Investments in
other equity 1002551.95 -168720.11 54006.80 887838.64
instruments
Total of the above 1002551.95 -168720.11 54006.80 887838.64
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
Unit: RMB
Item Ending carrying value Reason for restriction
Monetary assets 7835036.35 Notes 1-10
Land use rights at Fumin New
Village Futian District Shenzhen 542507314.43 Note 11
Total 550342350.78
Note 1: In terms of monetary assets with restricted right to use at the period-end there was an escrow deposit of RMB44820.14 of
the catering branch of the subsidiary company Shandong Shenguomao Real Estate Management Co. Ltd.Note 2: In terms of monetary assets with restricted right to use at the period-end there was an advance payment guarantee deposit of
RMB459627.50 issued by the subsidiary company Shenzhen Facility Management Community Technology Co. Ltd. in December
2021 for the upgrading and reconstruction of the smart park of Shenzhen Bay Eco-Technology Park and the software platform
development contract.Note 3: 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 4: In terms of monetary assets with restricted right to use at the period-end there was a loan deposit of RMB1131041.58
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 5: In terms of monetary assets with restricted right to use at the period-end there was RMB2860000.00 of interest on term
31ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
deposits accrued at the period-end.Note 6: In terms of monetary assets with restricted right to use at the period-end there was RMB16111.20 of interest on large-
denomination CDs (more than one year).Note 7: In terms of monetary assets with restricted right to use at the period-end there was RMB129154.28 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 8: In terms of monetary assets with restricted right to use at the period-end there was a restricted fund of RMB42781.65 in the
frozen account of the subsidiary company Shenzhen Huazhengpeng Property Management Co. Ltd.Note 9: At the end of the period there were monetary funds with restricted use rights including an amount of RMB150000.00
which was provided by the subsidiary Shenzhen International Trade Center Property Management Co. Ltd (ITC Property
Management). This amount was submitted on 28 December 2022 as an on-demand bid bond deposit to participate in the bidding
process for the Jiulong Street Domestic Waste Sorting Operation Project (Bidding No.: 21C00183).Note 10: 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 11: Due to the needs of daily business activities the Company applied for a loan from Bank of Communications Co. Ltd.Shenzhen Branch and mortgaged the land use right of Fumin New Village Futian District. The loan has a duration from November
27 2020 to November 27 2023 and applies floating interest rates.
VII Investments Made
1. Total Investment Amount
□Applicable□ Not applicable
2. Major Equity Investments Made in the Reporting Period
□Applicable □ Not applicable
Unit: RMB
W
het
her
inv
Nam
e of Pro Status
olv
Main Inves Shareho Inves ed Date ofinves busin tment Invested lding
Sourc du as at the Investment return Disclosure
tee meth amount percent e of Partners
tment ct balance Predicted in the current in disclosudurati return an re (if index (if
corpo esses od age (%) fund on typ sheet period y any) any)
ration e date leg
al
act
ion
s
For details
ShenZhen see the
Special Announceme
Shen Economic nt on the
zhen Prope Zone Real Progress of
Prope rty Estate & Eq Owners the Wholly-
rty mana Acqu 206390636 100.00 Equit Properties
uit 15
Long y hip 206390636 ownedMana geme isitio y (Group) -term int 1994678.06 No Februar Subsidiary'sgeme nt n .61 % fund Co. Ltd. transfer .61 Acquisition
nt servi and ere y 2022red of 100%
Co. ces Shenzhen st Equity in
Ltd. SPG Shenzhen
Investmen Property
t Co. Ltd. Managemen
t Co. Ltd.
32ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
and Related-
party
Transactions
on
www.cninfo.com.cn
(Announce
ment No.:
2022-01).
For details
see the
Announceme
nt on the
Progress of
the Wholly-
owned
Shen Subsidiary's
zhen Acquisition
Forei Prope of 100%gn rty China EqTrade Owners
Equity in
mana Acqu Equit Shenzhen uit 25 ShenzhenPrope 20902006. 100.00 hip 20902006.rty geme isitio y
Foreign Long y Foreign
Trade -term int 2904931.75 No Februarnt n 86 % fund transfer 86 TradeMana
geme servi
(Group) ere y 2022 Property
Corp. Ltd. st redces Managemennt t Co. Ltd.Co. and Related-
Ltd. party
Transactions
on
www.cninfo.com.cn
(Announce
ment No.:
2022-06).
For details
see the
Announceme
nt on the
Progress of
the Wholly-
owned
Subsidiary's
Shen Acquisition
zhen of 100%
Shenf Prope Eq Equity inubao rty
Prope mana Acqu Shenzhen uit
Owners Three
25
61147388. 100.00 Equit
rty geme isitio y Shenfuba Long y
hip 61147388. Enterprises
Deve nt n 00 % fund o (Group) -term int
-516728.17 No Februar Owned by
transfer 00
lopm servi Co. Ltd. ere y 2022
Shenzhen
st red Shenfubaoent ces (Group) Co.Co. Ltd. and
Ltd. Related-
party
Transactions
on
www.cninfo.com.cn
(Announce
ment No.:
2022-05).
Build For details
ing see the
Shen proje Announceme
zhen ct nt on the
Shenf const Progress of
ubao ructio the Wholly-
Hydr n Eq Owners owned
opow municipal Acqu 21839733. 100.00 Equit
Shenzhen uit 25 Subsidiary's
hip 21839733.er isitio y Shenfuba Long y Acquisition
Muni proje n 03 % fund o (Group) -term int
-4580230.57 No Februar
transfer 03 of 100%
cipal ct Co. Ltd. ere y 2022 Equity in
Servi const st
red Three
ce ructio Enterprises
Co. n Owned by
Ltd. daily Shenzhenopera Shenfubao
tion (Group) Co.and Ltd. and
33ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
maint Related-
enanc party
e of Transactions
muni on
cipal www.cninfo.publi com.cn
c (Announce
facilit ment No.:
ies 2022-05).road
clean
ing
etc.For details
see the
Announceme
nt on the
Progress of
the Wholly-
owned
Subsidiary's
Shen Prope Acquisition
zhen rty of 100%
Free secur Eq Equity inTrade ity Shenzhen uit Owners ThreeZone and Acqu 253935937.1 100.00 Equit hip 3935937.1 Enterprises
Secur enter isitio y Shenfuba Long yo (Group) -term int 78811.51 No Februar Owned byity prise n 2 % fund transfer 2
Servi intern Co. Ltd. ere y 2022
Shenzhen
st red Shenfubaoce al (Group) Co.Co. secur Ltd. and
Ltd. ity Related-
party
Transactions
on
www.cninfo.com.cn
(Announce
ment No.:
2022-05).
Inves
tment For details
see the
const Voluntary
ructio Announceme
n nt on a
CSC opera Capital
EC tion Increase to
China
Smar etc. the Delisted
Constructi
t of CSCEC
Capit on Eq Capital 30
Parki parki Equit uit Smart
al 27352941. Science Long y increase 27352941. Decem
ng ng 10.00% y -term int 632605.58 No Parkingincre 18 and complet 18 ber
Tech busin fund ere Technology
ase Industry ed 2022
nolog ess st Co. Ltd.Corporati
y and through a
on Ltd.Co. supp Tender Offer
Ltd. ortin on
g www.cninfo.facilit com.cn
ies (Announce
and ment No.:
equip 2022-52).ment
341568642341568642
Total -- -- -- -- -- -- -- -- 514068.16 -- -- --.80.80
34ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
3. Major Non-Equity Investments Ongoing in the Reporting Period
□Applicable□ Not applicable
4. Financial Investments
(1) Securities Investments
□Applicable □ Not applicable
Unit: RMB
Gain/ Purc SolAccou Loss hase d
Variet Name Initial nting on fair Accumulatemeasu Beginning value d fair value d in
in Gain/loss Sourc
y of Code of of Re Ending Accou e ofinvestm
securit security securit remen carrying chang changes
Rep por in carrying nting invest
ent cost
y y t value es in charged to
ortin tin Reporting value title ment
metho Report equity g g Period
d ing Peri
funds
Per
Period od iod
Invest Obtain
Dome ments ed in
stic/Fo 400016
Gintia Fair
n A 356585 value 1002551. 0.0 887838.6 in Gintia
reign 、 Gintia metho 0.00 -168720.11 0.00 54006.80 other n’s6.06 95 0 4
stock 420016 n B d equity debtinstru restruc
ments turing
3565851002551.0.0887838.6
Total -- 0.00 -168720.11 0.00 54006.80
6.069504
(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
Net Ratio of Rel Relatio Own Credi
profit the net ate nship ershi tor’s Executed
Transac contrib profit d- betwee p of rights
as
Transact tion uted to contrib Prici par n the the and
scheduled
ion Asset sold Date of the Effect on the uted by ng ty transact asset liabili
or not; if Disclos Index toprice
party sale (RMB’ Compa Company the sale princi tra ion invol ties
not give
reasons ure date
disclosed
ny from of the ple nsa party ved invol information0000) the asset to cti and the has ved and
period- the on Compa been have measures
begin to Compa or ny all been taken
35ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
the date ny’s not (applica transf all
of sale total ble for erred transf
(RMB’ profit related- or erred
0000) (%) party not or
transact not
ions)
The sale of the
For details
asset helps
see the
completely
Announceme
Longga Land Lot eliminate the
nt on the
ng No. risks of inactivity
Progress of
Branch G02408- fees and no-
the Receipt
of 0002 at compensation
of a Land
Shenzhe Baolong 7 requisition Mark 16
Non- Requisition
n Street Novem 19667. among others et Decem
-530.85 24.52% No related Yes Yes Yes Compensati
Plannin Longgang ber 57 for the Baolu valua ber
party on by a
g and District 2022 Land thereby tion 2022
Subsidiary
Natural Shenzhen achieving the
onResourc (“Baolu pre-determinedwww.cninfo.es Land” for goals of a quick
com.cn
Bureau short) realization and
(Announce
value increase of
ment No.:
state-owned
2022-48).
assets.
2. Sale of Major Equity Investments
□Applicable□ Not applicable
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
Relatio
nship
Name with
Principa Registered Total assets Net assets Operating Operatingthe l activity capital revenue profit Net profit
Compa
ny
Shenzhen Develop
Huangchen ment
g Real Subsidi and 30000000. 7657167638 29721634 1615509012 62353554 46888270
Estate Co. ary sales of 00 .96 73.73 .59 1.95 8.28
Ltd. realestate
SZPRD Develop
Xuzhou ment -
Dapeng Subsidi and 50000000. 253083803.6 36388880 35287240
Real Estate ary sales of 22809215.04 41495109.00 4 .48 .03
Developme real 21
nt Co. Ltd. estate
Shenzhen
Internation Property
al Trade Subsidi manage 20000000. 1678426626 313016033 1661030007 85991459 57825200
Center ary ment 00 .04 .66 .13 .18 .38
Property services
36ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Manageme
nt Co. Ltd.Shenzhen Develop
SZPRD ment
Subsidi and 30000000. 637397817.9 132669835 125289644.9 28320912 20314679Urban ary sales of 00 5 .56 9 6.04 1.45
Renewal real
Co. Ltd. estate
Subsidiaries obtained or disposed in the Reporting Period
□Applicable □ Not applicable
Subsidiary How subsidiary was obtained or Effects on overall operations and operatingdisposed in the Reporting Period performance
Shenzhen Wuhe Urban Renewal Co. Newly established Revenue: RMB18.6755 millionLtd. Net profit: RMB3.2644 million
Shenzhen Tonglu Wuhe Investment Revenue: RMB7.3296 million
Development Co. Ltd. Newly established Net profit: RMB0.5998 million
Revenue: RMB0
Yangzhou Wuhe Real Estate Co. Ltd. Newly established Net profit attributable to the Company as the
parent: RMB-1.8704 million
Revenue: RMB0
Shenzhen Guomao Industrial Space
Service Co. Ltd. Newly established Net profit attributable to the Company as the
parent: RMB0.0020 million
Shenzhen Property Management Co. Revenue: RMB156.6348 million
Ltd. Acquired under common control Net profit: RMB1.7568 million
Revenue: RMB5.3699 million
Shenzhen Shenwu Elevator Co. Ltd. Acquired under common control
Net profit: RMB0.3131 million
Shenzhen Shenfang Real Estate Cleaning Revenue: RMB9.6523 million
Co. Ltd. Acquired under common control Net profit: RMB-0.0753 million
Shenzhen Foreign Trade Property Revenue: RMB39.5823 million
Management Co. Ltd. Acquired under common control Net profit: RMB2.9049 million
Shenzhen Shenfubao Property Revenue: RMB79.8539 million
Development Co. Ltd. Acquired under common control Net profit: RMB-0.7402 million
Revenue: RMB13.6029 million
Shenzhen Fubao Urban Resource
Management Co. Ltd. Acquired under common control Net profit attributable to the Company as the
parent: RMB0.2235 million
Shenzhen Shenfubao Hydropower Revenue: RMB47.5134 million
Municipal Service Co. Ltd. Acquired under common control Net profit: RMB-4.5802 million
Shenzhen Free Trade Zone Security Revenue: RMB25.2621 million
Service Co. Ltd. Acquired under common control Net profit: RMB0.0788 million
Notes to the principal subsidiaries and joint stock companies:
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”.
37ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
(II) The Company’s Development Strategy
As the traditional real estate market’s development declines on the whole various industrial resources have been continuously
occupied by the large-scale brand houses which has threatened the survival and development of medium and small-sized property
companies. “Large-scale Enterprises Taking All Advantages” has become normal in the industry and the positioning of “Houses arefor living in not for speculating on” has already been established. In this case 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 2023
In 2022 the management team of the Group conscientiously implemented the decisions and arrangements of the Board of
Directors and the Party Committee and carried out work around key tasks. Despite being confronted with various challenges such
as economic downturn the group actively responded resulting in its major performance indicators consistently ranking among the
top non-financial enterprises in the system for multiple years. Regarding project development milestone objectives were
successfully achieved for Bangling project Guangming Yutang Upper Mansion and Fuchang Phase II project. Concerning capital
operation the group made a strategic investment in China Construction Science and Industry Group's smart parking company
which fortified the group's equity investment portfolio. In all as the policies and mechanisms of the Group become more flexible
the enthusiasm of cadres and employees for planning and entrepreneurship has been enhanced. 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 2023 the Group will adhere to the general work guideline of "seeking improvement in stability". Guided by Xi Jinping's Socialist
Thought with Chinese Characteristics for a New Era it will deeply study and implement the spirit of the 20th CPC National
Congress deeply understand the decisive significance of the "two establishments" resolutely fulfill the "two safeguards" grasp the
major opportunities of Shenzhen's "dual zone" drive "dual zone" overlap and "dual reform" demonstration and fully implement the
decision and deployment of the State-owned Assets Supervision and Administration Commission of Shenzhen. Meanwhile it will
highlight the target-oriented problem-oriented and result-oriented practices focus closely on the core objective of "cash inflow" with
precise and continuous efforts take the initiative to take charge faithfully perform its duties and continue to make great efforts in
"acceleration amplification empowerment and effectiveness".——Project acceleration: The Group will do a good job of co-ordination tighten the chain of responsibility compact the work
responsibilities ensure the rigid constraints of time nodes focus on solving the outstanding problems that restrict the construction of
projects solidly promote the speed of the projects under construction again achieve the speed-up of both node construction and sales
payment collection and promote if necessary the node construction should be subordinated to and serve the sales payment
collection.——Capital amplification: The Group will seize the once-in-a-decade opportunity in the capital market to amplify the functions of
38ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
state-owned capital and to strengthen and enlarge the listed Company through the two-wheel drive of "equity and debt"; to make
good use of the advantages as a state-owned enterprise and the potential of the listing platform to "amplify" the Group's ability to
obtain resources.— — Platform empowerment: Focusing on the three major priorities of the Group's headquarters' overseeing empowerment
secondary platform service empowerment and information technology empowerment the Group will continue to promote the
downward shift of management focus and management capabilities with the full coverage of the entire Group using Kingdee's
financial system HR system and OA system to integrate and enhance the technical platform and service system for the Group's
digital transformation.——Effective achievement of indicators: Based on the principle of "long-term targets medium-term expectations and short-term
results" the Group will strive to achieve its annual budget targets and to exceed the three-year rolling plan and reach the planned
levels. Additionally it will ensure that the annual sales payment collection additional financing and investment return targets are
achieved.With a focus on the annual priority tasks the Group will spare no effort in four work priorities i.e. project acceleration capital
amplification platform empowerment and indicator effectiveness 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 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. Budget targets such as annual revenue and total profit will be
achieved. Regarding the sales work the principle of "early planning early arrangements and early sales payment collection" will
be followed. The group will exert effort to attain the sales target for the Jinling project deliver and complete the Fuchang Phase II
project and ensure timely opening of projects such as Bangling Guangming and Humen.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. Additionally the pace of the Fuchang Phase II project will be advanced in an
orderly manner. The construction progress of the Sea Bay Garden project in Humen Town Dongguan and the Yutang Shangfu project
in Guangming District Shenzhen will be vigorously pushed forward. Continuous efforts will be put into the confirmation of land
rights for the Huiyang Danshui project the establishment of project companies and the scoping of the renewal unit for the Fuyuan
Industry Park project among others.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
39ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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. The group will leverage the chance provided by the third round of inspections
conducted by the party committee the second round of follow-up inspections and the resolution of issues identified in the 2022
administrative supervision and inspection to holistically enhance the group's overall management level. 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. The establishment of an all-around multi-level incentive and restraint
mechanism involving node awards and incremental sharing will continue to be promoted with secondary and tertiary companies
covered by the mechanism. The introduction cultivation employment education and restraint of cadres will be intensified and a
talent selection and employment orientation of promoting the capable awarding the excellent demoting the mediocre and
dismissing the inferior will be formed. Administrative work will be pushed downward the basic management level of secondary
platform companies and tertiary units will be enhanced significantly in the form of resident supervision and the Group's digital
transformation planning will be prepared and implemented. 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. The
specific measures include strengthening risk control safeguarding the bottom line of safe production keeping production safety in a
stable situation deepening 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. Moreover the Group will strengthen the dynamic follow-up and implementation of material risks keep a
close watch on wages for migrant workers and labor contract disputes maintain a strict and tight prevention and control posture and
resolutely safeguard stability and unity.(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
40ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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.The above business plan and business objectives do not represent the listed Company’s profit forecast for 2023. 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 Way
Date of visit of of Type of
Index to
visitor Visitor Contents and materials provided relevantvisit visit information
The
17 February 2022 Comp Other Individual Individual Inquiring about land reserve situation N/Aany
The
24 February 2022 Comp Other Individual Indivi Inquiring about the disclosure time of the 2021 N/A
any dual annual report
The
24 February 2022 Comp Other Individual Indivi Inquiring about the company's related business
any dual
N/A
layout
The
13 March 2022 Comp Other Individual Indivi Inquiring about the company's related business
any dual
N/A
layout
The
22 March 2022 Comp Other Individual Indivi Inquiring about the scope of the company's N/A
any dual business
31 March 2022 TheComp Other Individual
Indivi
dual Inquiring about the disclosure time of the N/A
41ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
any company's quarterly report
The
1 April 2022 Comp Other Individual Individual Inquiring about dividend distribution N/Aany
The
5 April 2022 Comp Other Individual Indivi Inquiring about the company's fulfillment of N/A
any dual social responsibility
The
7 April 2022 Comp Other Individual Indivi Inquiring about the development of the
any dual
N/A
company's main business
The
18 April 2022 Comp Other Individual Indivi Inquiring about issues related to information
any dual
N/A
disclosure
The
27 April 2022 Comp Other Individual Indivi Inquiring whether the company is launching N/A
any dual new businesses
The
28 April 2022 Comp Other Individual Indivi Inquiring about this year's performance
any dual
N/A
highlights
The
5 May 2022 Comp Other Individual Indivi Inquiring about the impact of the "Belt anddual N/Aany Road" policy on the company's operations
The
9 May 2022 Comp Other Individual Indivi Inquiring about the company's land reserve
any dual
N/A
situation and pending development projects
The
25 May 2022 Comp Other Individual Individual Inquiring about the company's profitability N/Aany
The
26 May 2022 Comp Other Individual Indivi Inquiring about the company's land reservedual N/Aany situation
The
28 May 2022 Comp Other Individual Individual Inquiring about Jinling sales situation N/Aany
The
28 May 2022 Comp Other Individual Indivi Inquiring about the group's supervision of its N/A
any dual subsidiaries
The
31 May 2022 Comp Other Individual Individual Inquiring about the number of shareholders N/Aany
The
1 June 2022 Comp Other Individual Individual Inquiring about dividend distribution N/Aany
The
6 June 2022 Comp Other Individual Indivi Inquiring about the disclosure of the annualdual N/Aany report
The
7 June 2022 Comp Other Individual Indivi Inquiring about the timing of periodicdual N/Aany information disclosure
The
8 June 2022 Comp Other Individual Individual Inquiring about the status of properties for sale N/Aany
The
10 June 2022 Comp Other Individual Indivi Inquiring about the company's shareholder
any dual
N/A
situation
The
10 June 2022 Comp Other Individual Individual Inquiring about dividend distribution N/Aany
The
13 June 2022 Comp Other Individual Individual Inquiring about dividend distribution N/Aany
The
14 June 2022 Comp Other Individual Indivi Inquiring about the number of company
any dual
N/A
shareholders
15 June 2022 TheComp Other Individual
Indivi
dual Inquiring about the company's future N/A
42ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
any development plan
The
15 June 2022 Comp Other Individual Individual Inquiring about the company's investment plan N/Aany
The
16 June 2022 Comp Other Individual Individual Inquiring about land reserve situation N/Aany
The
17 June 2022 Comp Other Individual Indivi Inquiring about the company's future
any dual
N/A
development plan
The
23 June 2022 Comp Other Individual Individual Inquiring about dividend distribution N/Aany
The
1 July 2022 Comp Other Individual Indivi Inquiring about the Guanlan Bangling project
any dual
N/A
situation
The
21 July 2022 Comp Other Individual Indivi Inquiring about the company's future
any dual
N/A
development plan
The
28 July 2022 Comp Other Individual Indivi Inquiring about solutions to industrydual N/Aany competition
The Inquiring about the state-owned enterprise
1 August 2022 Comp Other Individual Individual reform by the State-owned Assets Supervision N/Aany and Administration Commission
The
27 November 2022 Comp Other Individual Indivi Inquiring about the number of company
any dual
N/A
shareholders
The
29 November 2022 Comp Other Individual Indivi Inquiring about the company's future
any dual
N/A
cooperation plan
The
7 December 2022 Comp Other Individual Indivi Inquiring about the company's business N/A
any dual development situation
The Inquiring about the company's measures to
9 December 2022 Comp Other Individual Individual cope with the real estate industry's refinancing N/Aany policy
The
10 December 2022 Comp Other Individual Indivi Providing suggestions for the company's
any dual
N/A
development
43ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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
independent from the shareholders or other related parties in personnel management social security salary etc. In aspect of asset:
44ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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
Progress and
problem nature problem Solution subsequentCompany 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
45ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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”). 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 participati Date of the meeting Disclosure date Resolutions
on ratio
The reports and proposals
The 2021 deliberated and approved at the
Annual Annual meeting included the Report on the
General General 60.68% 17 May 2022 18 May 2022 Work of the Board of Directors in
Meeting Meeting 2021 the Report on the Work of theBoard of Supervisors in 2021 the
2021 Annual Report the 2021
46ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Financial Accounts Report the
2022 Financial Budget Report the
Plan on Profit Distribution and
Capitalization from Capital Reserve
in 2021 the Proposal on the
Comprehensive Credit Line for
2022 the Proposal on Estimated
Routine Related-party Transactions
for 2022 and the Proposal on
Renewing the Engagement of
Accounting Firm. For details
please refer to the Announcement
on the Resolutions of the 2021
Annual General Meeting (No.:
2022-19) on www.cninfo.com.cn.
During the meeting the proposals
below were reviewed and approved:
"Participation of the Subsidiary in
the Dongguan Humen Chigang
Community 2021WR023 Land Use
Rights Auction and Subsequent
Land Development" "Participation
of the Company in the Shenzhen
Guangming Yutang A606-0258
Land Use Rights Auction and
The 1st Subsequent Land Development"
Extraordinary Extraordinar "Purchase of Liability Insurance for
General y General 59.98% 20 July 2022 21 July 2022 Directors Supervisors and Senior
Meeting of Meeting Management" and "Election of Mr.
2022 Ma Hongtao as the Shareholder
Representative Supervisor of the
Tenth Supervisory Board of the
Company". For additional
information please refer to the
announcement of resolutions made
at the 2022 First Extraordinary
Shareholders' Meeting with the
reference number 2022-31 on the
China Securities Regulatory
Commission Information Network.
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
Be In D Ot En Re
gi cr ec he di aso
Incum nn ea re r ng n
Name Office title bent/F Gender Age Start of tenure End of tenure
in se as in sh for
ormer g in e cr ar shash th in ea eh re
ar e th se/ ol cha
eh Re e de di nge
47ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
ol po Re cr ng
di rti po ea (s
ng ng rti se ha
(s Pe ng (s re)
ha rio Pe ha
re) d rio re)
(s d
ha (s
re) ha
re)
Liu Party Secretary and
Shengxi Chairman of the Incum Male 52 15 June 2018 26 September 2024
ang Board bent
Wang Director Deputy Incum
Hangjun Party Secretary GM Male 57 15 June 2018 26 September 2024bent
Zhang Director Deputy Incum
Male 46 29 June 2022 26 September 2024
Zhimin Party Secretary bent
Shen
Xueying Director and CFO
Incum Femal
54 15 June 2018 26 September 2024
bent e
Wang Director IncumGe Male 52 15 June 2018 26 September 2024bent
Xie
Director Incum
Chang Male 51 7 April 2020 26 September 2024bent
Mei
Yongho Independent Incum
ng Director
Male 59 15 June 2018 26 September 2024
bent
Li Independent Incum
Donghui Director Male 51 27 September 2021 26 September 2024bent
Hu Independent Incum Femal
Caimei Director 41 27 September 2021 26 September 2024bent e
Chairman of the
Ma Incum
Supervisory Male 55 21 July 2022 26 September 2024
Hongtao bent
Committee
Zhang
Manhua Supervisor
Incum
Male 48 15 June 2018 26 September 2024
bent
Li Supervisor IncumQinghua Male 41 15 June 2018 26 September 2024bent
Employee
Supervisor
Wang Executive Director Incum Femal
Qiuping of ITC Park 53 15 June 2018 26 September 2024bent e
Secretary of the
Party Committee
Employee
Supervisor
Discipline
Gu Inspection Director Incum Femal
Weimin Deputy Secretary of 42 15 June 2018 26 September 2024bent e
the Discipline
Inspection
Commission
Chen Member of the Party
Hongji Committee and
Incum
Male 54 28 December 2020 26 September 2024
Deputy GM bent
Member of the Party
Cai Lili Committee and Incum Femal 51 15 June 2018 26 September 2024
Deputy GM bent e
Member of the Party
Li Peng Committee and Incum Male 47 15 June 2018 26 September 2024
Deputy GM bent
Zhang Member of the Party
Gejian Committee Deputy
Incum
Male 48 15 June 2018 26 September 2024
GM and Board bent
48ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Secretary
Wei
Xiaodon Director Deputy Forme
g Party Secretary
Male 53 15 June 2018 29 June 2022
r
Chairman of the
Supervisory
Dai Committee and
Xianhua Secretary of the
Forme
Male 61 15 June 2018 20 July 2022
Discipline r
Inspection
Commission
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
(1) Mr. Wei Xiaodong submitted a written resignation report on 29 June 2022 with his resignation effective immediately upon
receipt by the company.
(2) Mr. Dai Xianhua submitted a written resignation report to the company on 4 July 2022 with his resignation taking effect on 20
July 2022 when a new supervisor was elected at the company's shareholder meeting.Change of directors supervisors and senior management:
□Applicable □ Not applicable
Name Office title Type of change Date of change Reason for change
Wei Xiaodong Director Deputy PartySecretary Former 29 June 2022 Reappointment
Chairman of the
Dai Xianhua Supervisory Committee andSecretary of the Discipline Former 20 July 2022 Retirement
Inspection Commission
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
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.
49ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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 Chairman of the Board of BGI Agricultural Group (starting from September 2015) Vice
president of Country Garden Group & CEO of Country Garden Holdings Co. Ltd. (starting from August 2018).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
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
50ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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 was born in October 1968 and holds 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
(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
51ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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
Remunera
tion or
Name Shareholding entity Office held in the allowanceshareholding entity Start of tenure End of tenure from the
sharehold
ing entity
Wang Ge Shenzhen InvestmentHoldings Co. Ltd. Chief Engineer 1 March 2017 Yes
Xie Chang Shenzhen Investment
Director of the general
Holdings Co. Ltd. management department 7 April 2020 Yes
Zhang Shenzhen Investment Director of the legal and
Manhua Holdings Co. Ltd. risk management 1 January 2017 Yesdepartment
Li Shenzhen Investment Deputy director of the
Qinghua Holdings Co. Ltd. audit department 1 January 2017 Yes
Except for the major offices held concurrently in shareholding entities above Directors Wang Ge and Xie Chang as
Note 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:
52ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
□Applicable □Not applicable
Remuneration
Name Other entity Office held in the Start of tenure End of or allowanceentity tenure from the
entity
Shen China Shenzhen Foreign Trade (Group) Chief Financial
Xueying Co. Ltd. Officer 1 March 2020 No
Chairman of BGI
Agricultural Group
Mei Vice president of
Yongho BGI Agricultural Group County Garden County Garden 1 September 2015 Yes
ng Group & CEO of
Country Garden
Holdings Co. Ltd.Distinguished
professor doctoral
Li supervisor director
Donghui Shenzhen University of the Professor 1 April 2019 YesCommittee of the
School of
Economics
Deputy Director of
the Institute of
Hu
Caimei China (Shenzhen) Development Institute
Financial
Development and 1 November 2016 Yes
State-owned 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 2022 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 executiveswas 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 remuneration from the Company Any
Incum during the Reporting Period remun
Name Office title Gender Age bent/F eratioormer Total Of which n from
related
53ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Fee for party
director/sup
Mandated ervisor
Salaries
benefits and/or
meeting
allowances
Liu
Shengxian Party Secretary and Mal IncumChairman of the Board 52 122.33 93.48 28.85 N/A Nog e bent
Wang Mal Incum
Hangjun Director GM 57 116.36 88.12 28.24 N/A Noe bent
Zhang Director Deputy Party Mal Incum
46 50.89 39.14 11.75 N/A No
Zhimin Secretary e bent
Wei Director Deputy Party Mal Forme
Xiaodong Secretary 53 43.53 36.06 7.47 N/A Noe r
Shen Director and CFO Fem IncumXueying 54 140.79 118.52 22.27 N/A Noale bent
Wang Ge Director Mal Incum52 0 0 0 N/A Yes
e bent
Xie
Director Mal Incum
Chang 51 0 0 0 N/A Yese bent
Mei
Yonghong Independent Director
Mal Incum
59 8 8 0 N/A Yes
e bent
Li
Donghui Independent Director
Mal Incum
51 8 8 0 N/A No
e bent
Hu
Caimei Independent Director
Fem Incum
41 8 8 0 N/A No
ale bent
Ma Chairman of the Mal Incum
54 64.64 53.68 10.96 N/A No
Hongtao Supervisory Committee e bent
Chairman of the
Dai Supervisory Committee Mal Forme
Xianhua Secretary of Committee 61 59.41 52.05 7.36 N/A Noe r
for Discipline Inspection
Zhang Supervisor Mal IncumManhua 48 0 0 0 N/A Yese bent
Li
Qinghua Supervisor
Mal Incum
41 0 0 0 N/A Yes
e bent
Employee supervisor
Wang executive director of ITC Fem Incum
Qiuping Technology Park Party 53 87.03 68.93 18.1 N/A Noale bent
Secretary
Employee supervisor
Director of Discipline
Gu Inspection Office and Fem Incum
Weimin Deputy Secretary of the 42 85.75 69.59 16.16 N/A Noale bent
Discipline Inspection
Commission
Chen Member of the Party Mal Incum
Hongji Committee Vice GM 54 105.33 82.37 22.96 N/A Noe bent
Cai Lili Member of the Party Fem IncumCommittee Vice GM 51 105.33 82.37 22.96 N/A Noale bent
Li Peng Member of the Party Mal IncumCommittee Vice GM 47 105.33 82.37 22.96 N/A Noe bent
Zhang Member of the Party
Gejian Committee Vice GM
Mal Incum
48 103.24 80.28 22.96 N/A No
Board Secretary e bent
Total -- -- -- -- 1213.96 -- --
Pay Statement:
54ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
(1) The pay comprises of a fixed salary 2021 performance bonus and communication allowance. The company provides statutory
benefits including social insurance enterprise annuity and housing provident fund in compliance with regulations.
(2) The table does not incorporate the 2021 long-term incentive bonuses granted to directors Liu Shengxiang Wang Hangjun Wei
Xiaodong and senior managers Chen Hongji Cai Lili Li Peng and Zhang Gejian. The bonuses amount to RMB849100
RMB591200 RMB487000 RMB208800 RMB384800 RMB243200 and RMB245800 respectively and will be paid in
2022. The estimated long-term incentive bonuses for the mentioned directors and senior managers in 2021 conform to the relevant
rules and regulations. However the actual payment amount will prevail.
(3) All of the mentioned bonuses are pre-tax amounts.
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
Rewrite: The board of directors approved
various proposals including Appointment of the
General Manager of the Company
Appointment of Vice General Manager and
Financial Officer of the Company and
Appointment of the Chief Financial Officer of
The 6th Meeting of the 10th
Board of Directors 21 February 2022 22 February 2022 the Company. For more details please refer to
the Announcement of the Resolutions of the
Sixth Meeting of the Tenth Board of Directors
with the identification number of 2022-03 on
the website of the China Securities Regulatory
Commission (CSRC) Information Disclosure
website.The board of directors has given their approval
to several proposals such as Signing Post
Appointment Agreements and Term Business
Performance Responsibility Letters by
Members of the Company's Management
Proposal and Formulating the Authorization
th th Management Measures of the Board ofThe 7 Meeting of the 10
Board of Directors 3 March 2022 4 March 2022 Directors of ShenZhen Properties & Resources
Development (Group) Ltd. to the Management
Proposal among others. Additional information
can be found in the announcement of the
Seventh Meeting's Resolutions of the Tenth
Board of Directors identified as 2022-07 on
the China Securities Regulatory Commission
(CSRC) Information Disclosure website.
The board of directors has approved a range of
proposals which include the Work Report of the
Board of Directors for 2021 Annual Report for
2021 Financial Final Account Report for 2021
Financial Budget Report for 2022 Proposal on
The 8th Meeting of the 10th Provision and Reduction of Various Asset
Board of Directors 29 March 2022 30 March 2022 Impairment Reserves Proposal on Profit
Distribution and Capitalization of Reserve
Fund for 2021 Proposal on Comprehensive
Credit Limits and Financing Limits for 2022
Proposal on Operating Plan and Investment
Plan for 2022 Internal Control Evaluation
55ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Report for 2021 Proposal on Estimated
Routine Related Transactions for 2022 and
Proposal on Renewing the Engagement of
Accounting Firm. Further details are available
in the Announcement of the Board of Directors'
Resolutions identified as 2022-10 on the
China Securities Regulatory Commission
(CSRC) Information Disclosure website.
The board of directors has given their approval
to several proposals such as the Proposal on
Signing Performance Target Responsibility
Letters for Senior Management in 2022
Proposal on Convening the 2021 Shareholders'
The 9th Meeting of the 10th 26 April 2022 27April 2022 Meeting Company's First Quarter Report forBoard of Directors 2022 among others. Additional information can
be found in the Announcement of the Board of
Directors' Resolutions identified as 2022-16
on the China Securities Regulatory
Commission (CSRC) Information Disclosure
website.The board of directors has approved multiple
proposals such as the Proposal on Subsidiaries
Participating in Bidding for the Use Right of
Land No. 2021WR023 in Chigang Area of
Humen Dongguan and Subsequent Land
Development Proposal on Company's
Participation in Bidding for the Use Right of
Land A606-0258 in Yutang Guangming
Shenzhen and Subsequent Land Development
Proposal on Purchasing Liability Insurance for
Directors Supervisors and Senior
Management Proposal on Convening the First
Extraordinary General Meeting of 2022
The 10th Meeting of the 10th
Board of Directors 4 July 2022 5 July 2022
Proposal on Changing the Name of the Audit
Committee of the Board of Directors Proposal
on Adjusting the List of Members of Some
Special Committees of the 10th Board of
Directors Proposal on the Performance
Commitment Completion of ITC Technology
Park Shenzhen ITC Technology Park Service
Co. Ltd. (formerly Shenzhen Toukong Property
Management Co. Ltd. (TK Property) for 2019-
2021 and others. For more information please
refer to the Announcement of the Resolutions of
the Tenth Meeting of the Tenth Board of
Directors identified as 2022-22 on the China
Securities Regulatory Commission (CSRC)
Information Disclosure website.
56ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
During the meeting the board of directors
passed the 2022 Interim Report of the Company
and the Proposal on Revising the Internal
Control System of ShenZhen Properties &
The 11th Meeting of the 10th
Board of Directors 26 August 2022 29August 2022
Resources Development (Group) Ltd.. To learn
more about these matters please refer to the
Announcement of Board Resolutions for the
Interim Report with the number 2022-37 which
can be found on the China Securities Journal
Information Network.The 2022 Third Quarter Report of the Company
was passed during the meeting. For further
The 12th Meeting of the 10th 28 October 2021 31 October 2022 information please see the 2022 Third QuarterBoard of Directors Report with the reference number 2022-42 on
the China Securities Journal Information
Network.During the meeting the Proposal on
Formulating the Company's '14th Five-Year
Plan' Strategic Plan and the Proposal on
Subsidiaries Signing Land Compensation
The 13th Meeting of the 10th
Board of Directors 7 November 2022 8 November 2022
Agreements were passed. For more information
please consult the Announcement of Board
Resolutions for the 13th Meeting of the 10th
Board of Directors with the reference number
2022-44 available on the China Securities
Journal Information Network.The Board of Directors deliberated and
approved the Proposal for Wholly-owned
Subsidiaries to Sign Agreements with Related
The 14th Meeting of the 10th
Parties and Related Party Transactions. For
Board of Directors 23 December 2022 24 December 2022 details please refer to the Announcement of
Board Resolution on the 14th Meeting of the
10th Board of Directors with the number 2022-
49 on the website of the CSRC GEM
Information Disclosure System.The Board of Directors deliberated and
approved the Proposal on the Results of the
Company's 2021 Executive Assessment and Its
Application Plan and the Proposal for Wholly-
th th owned Subsidiaries to Sign Property ServiceThe 15 Meeting of the 10
Board of Directors 30 December 2022 31 December 2022 Contracts with Related Parties and Related
Party Transactions. For details please refer to
the Announcement of Board Resolution on the
15th Meeting of the Tenth Board of Directors
with the number 2022-53 on the website of the
CSRC GEM Information Disclosure System.
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 tomeetings meetings the attend two General
Director meetings the meetings attended bydirector 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)
57ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Liu
Shengxiang 10 1 9 0 0 No 2
Wang
Hangjun 10 1 9 0 0 No 2
Shen
Xueying 10 1 9 0 0 No 2
Wang Ge 10 1 9 0 0 No 2
Xie Chang 10 1 9 0 0 No 2
Mei
Yonghong 10 1 9 0 0 No 2
Li Donghui 10 1 9 0 0 No 2
Hu Caimei 10 1 9 0 0 No 2
Zhang
6 0 6 0 0 No 1
Zhimin
Wei
4 1 3 0 0 No 1
Xiaodong
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
Number
of Important Specific
Name of Members meeting Date of meeting Contents comments
Other dispute
committee s and performance d
conven suggestions of duties matters
ed (if any)
Guiding the
Strategic preparation of
Development Liu Shengxiang
and Wang Hangjun
the Company's
Zhang Zhimin Deliberation on the Proposal for Formulating the strategicInvestment 1 4 November 2022 Company's "14th Five-Year" Strategic Plan Agree planning
Decision Wang Ge Xie during the
Committee Chang "14th Five-
year Plan"
58ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
period.
25 January 2022 Review of the company's 2021 annual audit reportand the 2022 annual audit work plan. Agree
1. Review of the company's 2021 annual
consolidated financial statements audit report; 2.
25 March 2022 Review of the company's 2021 internal control Agree
audit report; 3. Review of the proposal for Supervising
reappointment of the accounting firm. the work of
external audit
1. Deliberation on the Inspection Report on the agencies and
Company's 2021 Guarantee Related Party the Company's
Transactions and Other Matters; 2. Deliberation internal audit
29 March 2022 on the 2021 Internal Control System Work Report Agree work;
and its Annex of SZPRD; 3. Deliberation on the supervising the
2022 Major Risk Assessment Report and its Annex implementatio
Li Donghui Wang of SZPRD. n of the
Hangjun Wei Company's
Audit and Risk Xiaodong (former) internal
6 1. Review of the progress of the company's 2022Committee Zhang Zhimin Mei controlQ1 internal audit work; 2. Review of the quarterly
Yonghong and Hu 25 April 2022 policies;tracking and monitoring table of major risks (Q1 Agree
Caimei coordinating2022). the
communicatio
1. Deliberation on the company's 2022 half-year n of the
report; 2. Review of the progress of the company's management
2022 Q2 internal audit work; 3. Review of the internal audit
Inspection Report on the Company's Guarantee departments
Related Party Transactions and Other Matters in and relevant
22 August 2022 the First Half of 2022; 4. Review of the Agree departments
Development Plan for Risk Management and with external
Internal Control of SZPRD (Review Draft); 5. audit agencies.Review of the Guidelines for the Construction of
Risk Internal Control and Compliance System of
SZPRD (Review Draft).
27 October 2022 Review of the progress of the company's 2022 Q3internal audit work Agree
Deliberation on the proposal regarding the 2021 Studying the
16 May 2022 performance assessment results of the group
assessment
Agree
company standardsremuneration
policies and
plans for the
Company's
directors and
senior
management
personnel;
1. Discussion of the 2021 Annual Performance supervising the
Hu Caimei Mei Evaluation Plan for Senior Management of the performance
Remuneration Yonghong Li Group; 2.Examination of the 2021 Individual of duties by
and Evaluation Donghui Xie 2 Duty Reports of Senior Management of SZPRD; 3.the Company's
Committee Chang Shen Review of the Completion Status Chart for directors and
Xueying 28 November 2022 Annual Performance Objectives of Senior
senior
Agree
Management of SZPRD; 4. Consideration of the management
supplementary and veto items for the 2021 senior personnel;
management assessment;5. Deliberation on the conducting
roster of personnel accountable for the 2021 annual
senior management assessment. performanceassessment on
the Company's
directors and
senior
management
personnel and
offering
suggestions.
59ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Studying the
size and
constitution of
Mei Yonghong Liu the Board of
Nomination Shengxiang Wang The verification and examination of Shen Directors and
Committee Ge Hu Caimei and 1 14 February 2022 Xueying's eligibility for the position of CFO in the Agree its special
Li Donghui company committeesand offering
suggestions to
the Board of
Directors.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 9232
Total number of in-service employees at the period-end 9330
Total number of paid employees in the Reporting Period 9330
Number of retirees to whom the Company as the parent or its
major subsidiaries need to pay retirement pensions 0
Functions
Function Employees
Production 6863
Sales 175
Technical 1416
Financial 201
Administrative 421
R&D 37
Managerial 217
Total 9330
Educational backgrounds
Educational background Employees
Junior college and technical secondary school and above 3527
Senior high school and below 5803
Total 9330
60ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
2. Employee Remuneration Policy
To align with the group's development strategy requirements in 2022 the group company implemented a performance-based
assessment and management system for managers of subordinate enterprises. This system established clear rules for utilizing
various types of assessment results in the annual assessment of manager members resulting in increased work efficiency and
enhanced effectiveness of the compensation and performance management system. 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 2022 the group company prioritized the creation of a learning organization and made significant efforts to construct its training
center. It worked towards optimizing its training system to meet the enterprise's development strategy and the personal
development goals of its employees. The company offered courses to enhance management abilities improve professional skills
and upgrade job skills for employees at all levels. This objective was to continuously enhance the employees' professional
knowledge business capabilities and execution skills aligning the company's development with the growth of its employees
thereby providing robust support for the group's strategic planning and development.
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
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) 3.61
Total shares as the basis for the profit distribution 595979092
proposal (share)
Cash dividends (RMB) (tax inclusive) 215148452.21
Cash dividends in other forms (such as share repurchase)
(RMB) 0.00
Total cash dividends (including those in other forms)
(RMB) 215148452.21
Distributable profit (RMB) 1105473319.87
Total cash dividends (including those in other forms) as %
of total profit distribution 100%
Cash dividend policy
61ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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
RMB3.61 (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. The Board of Directors of the Company is in full charge of the
development implementation and improvement of the Company's internal control system and carries out regular inspections and
effect assessments on internal control. Besides it serves as the highest decision-making body and the ultimately responsible unit for
the Company's comprehensive risk management and is responsible for the effectiveness of the Company's comprehensive risk
management. The Audit and Risk Management Committee under the Board of Directors is accountable to the Board of Directors and
is under the direct leadership of the Board of Directors. The Audit and Risk Management Committee carries out various work
through internal audit departments such as supervising and inspecting the implementation of the internal control system assessing
the effectiveness of internal control and offering suggestions on how to improve internal control and correct mistakes. The Board of
Supervisors is in charge of supervising and inspecting the implementation of internal control and the establishment improvement and
implementation of the risk management system.The company persisted in promoting the optimization of the risk management and internal control system and the standardization
of the financial management system project in 2022. It established operational standards and tool forms for the risk management
and internal control manual and completed the review and promotion training for all optimization project results. The company
will continue to optimize the system in the later period.
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 Inte Problems Settl Follo
company Integration plan grati encountered in Solutions taken eme w-upon integration nt settle
62ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
prog prog ment
ress ress plan
1. Formulate a plan
1. Guarantee the stability of the existing
to reform the
business while gradually implementing
employment
Shenzhen Property's standardized
mechanism that is
business system.market-driven.
2.Ensure the stability of the workforce The The
2.Systematically
by integrating human resource wor wor
integrate human
management into the Shenzhen Property k is 1. Disparities k isresources
system. bein exist in the salary beinmanagement into
3. Drive the integration of the OA office g g
Shenzhen and benefits the Shenzhen None
and financial management systems. prog
Property framework.prog
Property at the
4. Consolidate the property management ress
Management 2.The pool of
ress
management mome
sector system establish clear labor ed
Co. Ltd. officials in reserve
ed
system. nt
divisions and promote collaboration as is inadequate to as
3. Enhance and
among diverse professional firms per fulfill business per
enhance professional skills bolster the requirements.gradually build up
the
the pool of officials
marketization and core competitiveness. plan plan
through internal
5. Formulate strategies to enhance the . .
competition
quality and efficiency of each company
market-driven
and gradually implement measures to
recruitment and
reduce losses and transform losses into
training
profits.mechanisms.
1.Formulate a plan
to reform the
employment
mechanism that is
market-driven.
2.Systematically
1.Guarantee the stability of the existing
integrate human
business while gradually implementing
resources
Shenzhen Property's standardized
management into
business system.the Shenzhen
2. Ensure the stability of the workforce The 1. Inadequate pool The
Property
by integrating human resource wor of officials in wor
management
management into the Shenzhen Property k is reserve. k is
system.system. bein 2. Disparities bein
Shenzhen 3. Prepare a list of
3. Drive the integration of the OA office g exist in the salary g
Shenfubao authority None
and financial management systems. prog and benefits prog
Hydropower management for at the
4.Consolidate the property management ress framework. ress
Municipal water and electricity mome
sector system establish clear labor ed 3.Subpar standard ed
Service Co. engineering clarify nt
divisions and promote collaboration as of business. as
Ltd. the limits of the
among diverse professional firms per 4. Considerable per
company's rights
enhance professional skills bolster the pressure to curtail the
and responsibilities
marketization and core competitiveness. plan losses and achieve plan
and rigorously
5.Formulate strategies to enhance the . profitability. .
manage compliance
quality and efficiency of each company
risks.and gradually implement measures to
4.Develop strategies
reduce losses and transform losses into
to enhance quality
profits.and efficiency
lower costs
enhance quality and
gradually reverse
the loss-making
trend.Shenzhen 1.Guarantee the stability of the existing The 1. Inadequate pool 1.Formulate a plan The None
Shenfubao business while gradually implementing wor of officials in to reform the wor at the
63ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Property Shenzhen Property's standardized k is reserve. employment k is mome
Development business system. bein 2.Disparities exist mechanism that is bein nt
Co. Ltd. 2. Ensure the stability of the workforce g in the salary and market-driven. g
by integrating human resource prog benefits 2.Systematically prog
management into the Shenzhen Property ress framework. integrate human ress
system. ed 3.Subpar standard resources ed
3. Drive the integration of the OA office as of business. management into as
and financial management systems. per 4. Considerable the Shenzhen per
4. Consolidate the property management the pressure to curtail Property the
sector system establish clear labor plan losses and achieve management plan
divisions and promote collaboration . profitability. system. .among diverse professional firms 3. In the case of
enhance professional skills bolster pivotal park
marketization and core competitiveness. projects incorporate
5.Formulate strategies to enhance the Shenzhen Property's
quality and efficiency of each company standardized
and gradually implement measures to operating
reduce losses and transform losses into procedures while
profits. aligning with
individualized
business practices
to enrich the
customer service
experience.Additionally
engage with the
party A entities to
enhance the
charging criteria
and streamline
service
requirements.
4. Develop
strategies to
enhance quality and
efficiency lower
costs enhance
quality and
gradually reverse
the loss-making
trend.
1. Guarantee the stability of the existing 1. Formulate a plan
business while gradually implementing to reform the
Shenzhen Property's standardized The 1. Inadequate pool employment The
business system. wor of officials in mechanism that is wor
2. Ensure the stability of the workforce k is reserve. market-driven. k is
by integrating human resource bein 2. Disparities 2. Systematically bein
Shenzhen Free management into the Shenzhen Property g exist in the salary integrate human g
None
Trade Zone system. prog and benefits resources prog
at the
Security 3. Drive the integration of the OA office ress framework. management into ress
mome
Service Co. and financial management systems. ed 3.Subpar standard the Shenzhen ed
nt
Ltd. 4.Consolidate the property management as of business. Property as
sector system establish clear labor per 4. Considerable management per
divisions and promote collaboration the pressure to curtail system. the
among diverse professional firms plan losses and achieve 3.Formulate plan
enhance professional skills bolster . profitability. strategies to .marketization and core competitiveness. enhance quality and
5.Formulate strategies to enhance the efficiency curtail
64ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
quality and efficiency of each company expenses boost
and gradually implement measures to quality and
reduce losses and transform losses into progressively
profits. overturn the loss-
making trend.
4. Augment revenue
and decrease
management costs
through internal
business
coordination.
1. Guarantee the stability of the existing
1.Formulate a plan
business while gradually implementing
to reform the
Shenzhen Property's standardized
employment
business system.
1.Inadequate pool mechanism that is
2.Ensure the stability of the workforce The The
of officials in market-driven.by integrating human resource wor wor
reserve. 2.Systematically
management into the Shenzhen Property k is k is
2. Disparities integrate human
system. bein bein
exist in the salary resources
Shenzhen 3. Drive the integration of the OA office g g
and benefits management into None
Foreign Trade and financial management systems. prog prog
framework. the Shenzhen at the
Property 4. Consolidate the property management ress ress
3. Subpar Property mome
Management sector system establish clear labor ed ed
standard of management nt
Co. Ltd. divisions and promote collaboration as as
business. system.among diverse professional firms per per
4. Considerable 3.Develop strategies
enhance professional skills bolster the the
pressure to curtail to enhance quality
marketization and core competitiveness. plan plan
losses and achieve and efficiency
5.Formulate strategies to enhance the . .
profitability. reduce costs
quality and efficiency of each company
improve quality and
and gradually implement measures to
gradually turn the
reduce losses and transform losses into
tide on losses.profits.XIV Self-Evaluation Report or Independent Auditor’s Report on Internal Control
1. Internal Control Self-Evaluation Report
Disclosure date of the internal control
self-evaluation report 25 March 2023
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 99.64%
revenue
Identification standards for internal control weaknesses
Type Weaknesses in internal control over Weaknesses in internal control notfinancial reporting related to financial reporting
Indications of the serious defect of the Major defects include: 1. Serious
financial report were including: 1. the violation of national laws and
control environment is invalid; regulations leading to major litigation
Nature standard 2. Commitment of major fraud by or investigation of regulatory agencies
directors supervisors or senior ordered suspension of business for
management of the Company; rectification investigation for criminal
3. the audit institution discovered the responsibility or replacement of senior
65ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
current financial report had great defect managers;
while the internal control of the Company 2. Abnormal major changes of
didn’t found out during the operating directors supervisors senior
process; management and main technical
4. Correction of major misstatement in personnel of the Company;
financial reports reported or disclosed by 3. Major decision-making errors due to
the Company; lack of internal democratic decision-
5. the supervision of the Company’s Audit making procedures or unscientific
and Risk Management Committee and the procedures;
internal audit department on the internal 4. Serious loss of core management or
control was invalid. technical personnel;
Indications of the important defect of the 5. Vicious negative news frequently
financial report were including: 1. didn’t appeared in the media involving a
abide by the universally acknowledged wide range and negative existing
accounting standard to choose and apply influence;
the accounting policies; 2. had not built up 6. Significant impact on the
the anti-fraud process and the control Company’s production and operation
measures; 3. had not built up the due to lack of system control or system
corresponding control mechanism or had failure of important business;
not executed the corresponding
compensating control for the accounting 7. Major defects of internal control
treatment which was unconventional or evaluation to be rectified;
with special transaction; 4. the control 8. Any other negative circumstances
during the process of the financial report at generating significant impact on the
the period-end existed one or multiple Company.defects that could not guarantee the Significant defects include: 1.compile of the financial report reach the Incomplete democratic decision-
goal of being real and complete; making process that affects production
5. Important or general defects of internal and operation of the Company;
control to be rectified. 2. Violation of internal rules and
Common defect: refers to the other control regulations leading to important losses;
defect except for the above great defect 3. Exposure of negative news by the
and significant defect. media leading to significant impact on
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: potential misstatement of Major defects: direct property loss ≥
the operating income≥1% of the operating 1.00% of net assets of the previous
income of the consolidated statements of year;
the Company potential misstatement of Significant defects: 0.5% of net assets
the total assets amount≥0.40% of the total of the previous year ≤ direct property
assets of the consolidated statements of the loss < 1.00% of net assets of the
Company potential misstatement of the previous year;
net assets≥1.00% of the net assets of the Common defects: direct property loss
consolidated statements of the Company. < 0.5% of net assets of the previous
Important defect: 0.50% of the operating year.income of the consolidated statements of
Quantitative standard the Company≤misstatement<1% of the
operating income of the consolidated
statements of the Company; 0.2% of the
total assets of the consolidated statements
of the Company ≤misstatement<0.4% 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:
misstatement of the operating
66ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
income<0.5% of the operating income of
the consolidated statements of the
Company misstatement of the total assets
amount<0.2% 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 0
reporting
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 25 March 2023
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 None
reporting
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.
67ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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 Penalty reason Violation situation Penalty result production and
Remediation
subsidiary 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.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.II Social Responsibility
Since its inception SZPRD has been adhering to the concept of honesty responsibility and win-win cooperation for the benefit of
society. The Company actively fulfills its social responsibilities and always takes repaying the society as an important development
concept. It actively fulfills its statutory social responsibilities and ethical social obligations and unifies the realization of economic
and social benefits to create an excellent corporate image. The Company carried out the following activities to perform its social
responsibility in 2022:
(I) Visit seriously ill employees in difficulty
On 20 January the Party Committee of SZPRD organized a symposium to extend regards to the employees in difficulty before the
Spring Festival. Liu Shengxiang Secretary of the Party Committee of the Group and Chairman of the Group and Wei Xiaodong
Deputy Secretary of the Party Committee of the Group delivered sympathy funds and items amounting to approximately
RMB110000 to representatives of Party members and employees in difficulty making them feel the care and warmth of the
Group as an extended family.During the symposium Group leaders communicated with Party members and representatives of employees in difficulty and
learned about their work and life in detail. Liu Shengxiang Secretary of the Party Committee of the Group and Chairman of the
Group introduced the Group's strategic planning under the 14th Five-Year Plan fruitful achievements made by the Group in 2021
and the Group's deployment of key work for 2022 while fully affirming and sincerely thanking all the Party members and
employees in difficulty for their earnest performance of duties in spite of numerous difficulties. Mr. Liu stressed that the
development of the Group is inseparable from the strong leadership of Shenzhen SASAC and SIHC and the tireless efforts and
selfless contribution of leading cadres at all levels and grassroots employees of the Group. In the process of development the
68ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Group will never let any employee fall behind. Finally he expressed the hope that the Group's Party members and employees in
difficulty would face life bravely with a positive attitude and the determination to overcome difficulties and get out of difficulties
to live a happy and healthy life as soon as possible.After the symposium Group leaders delivered sympathy funds and items as well as sincere New Year wishes to the
representatives of arty members and employees in difficulty hoping that they could have a safe and peaceful Spring Festival.(II) SZPRD reduced and exempted rental totaling over RMB50 million for enterprises in difficulty
In order to firmly implement the work requirements of Shenzhen SASAC and SIHC SZPRD actively fulfills its social
responsibilities and implements various measures for rental reduction and exemption by state-owned enterprises (hereinafter
referred to as "SOE rental reduction and exemption measures"). The Group had completed rental reduction and exemption totaling
RMB50.36 million for existing tenants benefiting 504 small and micro enterprises 197 household industrial and commercial
entities and four private kindergartens among others with a view to effectively alleviating the downward economic impact on
small and micro enterprises and making every effort to help market entities tide over difficulties.
1. The Group practically assumes the responsibility for rental reduction based on scientific coordination and rapid response.
In order to accelerate the implementation of rental reduction and exemption policies the Group effectively fulfills its entity
responsibility and establishes a SOE rental reduction and exemption working group in the first time to coordinate and organize the
implementation of rental reduction and exemption for the Group and its affiliated enterprises. The Group organizes the formulation
of the Work Plan of SZPRD for Implementing SOE Rental Reduction and Exemption and relevant work guidelines to refine the
working mechanism review and approval authority and review process and to clarify houses to be included in the rental reduction
and exemption measures the period of reduction and exemption as well as applicable objects and identification methods.Moreover it also releases rental reduction and exemption announcements through WeChat groups and bulletin boards to disclose
such information as acceptance method contact person and contact number so that all tenants can be aware of relevant rental
reduction and exemption policies through which the Group overcomes the current difficulties together with small and micro
enterprises and other market entities and well demonstrates its assumption of responsibility as a state-owned enterprise.
2. The Group weaves a compact "guarantee network" for rental reduction based on extensive publicity and Group-wide vertical
linkage.After the official launch of rental reduction all affiliated enterprises of the Group timely take the initiative to visit tenants guide
tenants to submit materials and simplify the declaration process so as to effectively open up the "last kilometer" for the
implementation of rental reduction policy. The Group establishes an effective routine working mechanism to strengthen
communication and liaison among all parties properly deal with the demands of all parties and comprehensively address the
problems encountered in practical operation. The Group and all its affiliated enterprises disseminate rental reduction and
exemption policies across all levels and for units and individuals really unable to enjoy such policies relieve their negative
emotions through patient explanation thanks to which they haven't experienced any complaint or petition event so far.Based on the full investigation in the early stage the Group in view of the problems and special cases centrally reflected by its
affiliated enterprises during their implementation of relevant policies organizes a number of special meetings on the promotion of
rental reduction and exemption to further clarify such issues as policy basis implementation entity and application scope so as to
ensure the precise and full implementation of rental reduction and exemption measures.
3. The Group standardizes operation strengthens review and does well in the review of rental reduction.
All the Group's affiliated enterprises strictly fulfill and improve the decision-making process for SOE housing rental reduction and
exemption matters. In line with the requirements of "one policy for one enterprise" and "one archive for one household" the
Group reviews the materials submitted by more than 700 tenant applicants batch by batch and item by item including entity
qualification declaration document business license tax payment certificate etc. based on which strictly and carefully screens the
objects of rental reduction and verifies the business scope and actual rental situation of tenants so as to ensure the compliance of
rental reduction objects with relevant laws and regulations. In view of the special matters occurred in the process of rental
reduction and exemption the Group holds two rounds of symposia on the list of beneficiaries for deliberation. Based on the
69ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
deliberation results the Group takes such indexes as rental period rental standard and rental reduction period as the determination
basis for reduction and exemption amount clearly requires middleman landlords subleasing state-owned houses to ensure the final
lessee benefit from rental reduction and exemption in line with the requirements of "achieving rental reduction and exemption to
the maximum possible extent" and premised on the standardization of rental reduction and exemption procedures enables flexible
reduction and exemption by means of direct return of rental or deduction from subsequent unpaid rental following the principle of
"implementing policies by category in an active and stable manner and doing the utmost to satisfy commercial tenants" with a
view to further reducing resistance to rental reduction and exemption.Next the Group will continue to coordinate various rental reduction and exemption work conduct rental reduction and exemption
for incremental tenants expand the effects of the aforesaid work help market entities overcome difficulties and stimulate the
development vitality of small and micro enterprises.(III) The guomao property's party committee embarks on "red flag red action" national blood donation month 2022
donating 150000 ml
In a bid to heighten the commitment to serving the people the Guomao Property Management Company Party Committee has
taken concrete measures to strengthen the company's party-building brand. With an eye towards practicality comprehensiveness
and meticulousness they orchestrated a national voluntary blood donation month campaign in 2022 under the banner of "Red Flag
Red Action."
Their efforts involved ten subsidiaries spread out across several cities including Hangzhou Shenzhen Jinan Yangzhou Baoding
and others. These enterprises organized on-site blood donation events and facilitated the personnel to donate blood at local blood
donation stations and centers. A total of 415 individuals stepped up and donated their blood contributing a total volume of
approximately 150000 milliliters.III Efforts in Poverty Alleviation and Rural Revitalization
With a noble sense of duty the group strove to uphold its corporate citizenship responsibilities by uplifting those in poverty
through the power of consumption. The labor union assumed a leading role in fulfilling social obligations heeding the investment
holding companies' call to action in support of consumption. Under the guidance of the group's party committee the union
meticulously crafted procurement plans executed procurement tasks with great care and furnished all necessary documentation in
a systematic manner. The union's unwavering commitment to the cause of poverty alleviation through consumption manifested in
an expenditure of around 1.6 million placing them amongst the foremost enterprises in the system. With hearts full of devotion
the union poured their resources into supporting the central targeted poverty alleviation work.Indicator Performance in 2022 Data Statistics Scope
Investment in Rural Revitalization/Funds (RMB10000) Approximately 162.9 Group-wide including subsidiaries
Investment in Rural Revitalization/Cadres (number of
times) 1 Group-wide including subsidiaries
70ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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
Commitment Promisor Type of Details of
Date of
commitment commitment commitment
Term of Fulfillment
making commitment
Wholly-owned
subsidiary
Shenzhen
Construction
Development
and majority-
owned
subsidiary SPG
of SIHC deal
with real estate
Commitments Commitments operation and
made in on horizontal commercial
acquisition Shenzhen house sales
documents or Investment
competition
Holdings Co. related-party
which belong to 6 September Three years Normal 2
shareholding Ltd. (SIHC) transactions
the same 2018 performance
and capital industry of thealteration
documents occupation
Listed
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
acquisition Shenzhen
on horizontal related
Investment competition transactionsdocuments or related-party with the Listed 6 September Long-term NormalHoldings Co.shareholding Ltd. transactions Company
2018 performance
alteration and capital SIHC makes
documents occupation the followingcommitment.3
SIHC sighed
equity transfer
contract on
Other Performance 100% equity
commitments ShenzhenInvestment commitment transfer of TKmade to and Property with 23 SeptemberHoldings Co. Three years Fulfillment
5
minority compensation the Company 2019
shareholders Ltd. arrangement and the contract
stipulated
relevant
commitments
71ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
on
performance.4
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
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
72ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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
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.Note 4: SIHC sighed equity transfer contract on 100% equity transfer of TK Property with the Company and the contract
stipulated: 1. SIHC promises that the cumulative net profits (net profit after deducting extraordinary items) of TK Property from
2019 to 2021 will not be less than 18% of the equity transfer payment amount of this transaction i.e. three-year cumulative net
profits ≥ equity transfer payment * 18%. The above net profits are subject to the amount which is confirmed by audited financial
report of TK Property. 2. In case three-year cumulative profits of TK Property fails to reach above promised amount SIHC shall
73ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
compensate the insufficient part to the Company in full amount by cash. In case three-year cumulative profits (net profit after
deducting extraordinary items) of TK Property is more than the promised amount the Company will not refund. 3. In case SIHC
needs to fulfill performance compensation obligation it shall complete the performance compensation obligation within 30 days
after receiving the compensation notice of the Company and the specific delivery method will be agreed by both parties. In case
SIHC delays to pay the performance compensation it shall pay liquidated damages of 3/10000 of unpaid amount for each day
delay. In case of failing to pay for more than 90 days then Company has the right to cancel the contract. On 27 November 2019
the Company completed the procedures for registration changes in industry and commerce regarding 100% equity transfer of TK
Property. According to the Equity Transfer Contract and the audit result on profit or loss of transitional period in the audit report
the final price for this equity transfer was determined bilaterally as RMB1027382513.56.Note 5: The audit results of Baker Tilly International (Special General Partner) show that by the end of 2021 the cumulative net
profit upon deduction of non-recurring gains and losses of ITC Technology Park Company during the three-year performance
commitment period of 2019 - 2021 was RMB212788300 and the portion exceeding 18% of transaction equity transfer payment
(RMB184928900) amounted to RMB27859400. The three-year cumulative net profit of the ITC Technology Park Company has
reached the promised amount. According to the Equity Transfer Contract it is unnecessary for SIHC to compensate the Company
in cash and the Company will not return the portion exceeding the promised amount (RMB27859400 in total) to SIHC. The
three-year cumulative net profit of the ITC Technology Park Company has reached the promised amount. According to the Equity
Transfer Contract it is unnecessary for SIHC to compensate the Company in cash and the Company will not return the portion
exceeding the promised amount (RMB27859400 in total) to SIHC. This commitment has already been fulfilled so far.
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
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
74ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
VI YoY Changes to Accounting Policies and Estimates and Correction of Material
Accounting Errors
□Applicable□ Not applicable
No such cases in the Reporting Period.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” VIII 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 3 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 Three years for Chen Zihan one year 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
X Insolvency and Reorganization
□Applicable□ Not applicable
No such cases in the Reporting Period.XI Major Legal Matters
□Applicable □ Not applicable
Involved Index
General information amount Provision Progress Decisions
Execution Disclo
(RMB’00 and effects of sure
to
00) decisions date
disclo
sed
75ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
inform
ation
Following the initial
hearing a
disagreement arose
between the two
parties involved in the
arbitration over the
Arbitration case of property
amount in question.contract dispute between
As a result they
the Fourth Owners'
requested a third-
Committee of Shenzhen
party audit institution
Nanshan District Software
to conduct an audit.Park (Applicant) and
During the second
Shenzhen ITC Technology
1319.63 Yes hearing the Not yet Not yet
Park Service Co. Ltd. for
arbitration panel
Software Park Phase I. The
inquired about the
Applicant requested an
details of the case and
award to the Respondent to
the audit report issued
return the owners' public
by the third-party
revenue and bear the
institution. Our side
attorney's fees.provided our
perspective in
response and we are
presently awaiting the
decision of the
arbitration panel.The first instance
judgment reads that
the plaintiff Shenzhen
Qitian Sunshine Hotel
Management Co. Ltd.shall pay rent of
RMB1050913.6 to
Shenzhen Qitian Sunshine the defendant
ShenZhen Properties
Hotel Management Co. & Resources
Ltd. (plaintiff) sued Development (Group)
ShenZhen Properties & Ltd. within ten days
Resources Development from the effective
(Group) Ltd. (defendant) for date of this judgment.property leasing contract All the claims of the
dispute requesting the 1144 Not plaintiff ShenzhenQitian Sunshine Hotel Not yet Not yet
defendant to pay Management Co. Ltd.compensation for interior were rejected and the
decoration of the relocated remaining
house and relocation fee of counterclaims of the
the leased house and to defendant Shenzhen
return the subsidy fee of the PropertyDevelopment (Group)
leased house etc. Co. Ltd. were
rejected. Shenzhen
Qitian Sunshine Hotel
Management Co. Ltd.has instituted an
appeal. The case is
currently in the
second trial stage.See Part See Part X See Part X
Summary of other contract See Part X Financial
9870.76 X Financial Financial
disputes Report-XIV-2
Financial Report-XIV- Report-
76ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Report- 2 XIV-2
XIV-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
XIV Major Related-Party Transactions
1. Continuing Related-Party Transactions
□Applicable □ Not applicable
As % of
Relation total Approve Over Obtainabl Index
ship Type of Specif Pricin Transa Total value of d the Metho e market toRelated with the transacti ic g ction value all transacti appro d of price for
Disclo disclo
party Compan on transa princi price (RMB’0 same- on line ved settle same-type
sure sed
y ction ple 000) type (RMB’0 line or ment transactio
date inform
transacti 000) not ns ation
ons
Annou
nceme
nt on
Signin
g
Proper
ty
Mana
gemen
Related- t
Contra
Shenzhe Wholly- partytransacti ct
n Bay owned ons Proper Proper Proper with
Area sub- governi ty ty ty 31 Relate
Internati subsidia ng sales manag manag manag Dece
of ement 7510.1 4.51% 8164.58 No Cash 7510.10 donal ry of the ement ement mber
Party
Hotel Compan commod servic servic servic 2022
Co. y as the ity and es
by a
providin es es Wholl
Ltd. parent g of y-
labors owned
Subsid
iary
and
Relate
d-
party
Transa
ction
(No.:
77ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
2022-
54)
disclo
sed on
Cninf
o
Annou
nceme
nt on
Estim
ated
Related- Contin
party uing
Shenzhe
n Bay Wholly-
transacti Relate
ons Proper Proper Proper d-
Technol ownedsubsidia governi ty
ty ty
30 party
ogy ng sales manag manag manag
Develop ry of theCompan of ement
5456.24 3.27% 4100 Yes Cash 5456.24 March Transa
ement ement
ment commod servic 2022 ctionsy as the servic servicCo. parent ity and es
in
Ltd. providin es es 2022
g of (No.:
labors 2022-
12)
disclo
sed on
Cninf
o
Related- Proper
Hebei partytransacti ty
Shenbao Sub- ons manag Proper Proper
Investm subsidia governi ement ty ty 30
ent ry of the ng sales servic manag manag
of 3145.98 1.89% 658.68 Yes Cash 3145.98 MarchDevelop Compan es and ement ement
2022
ment y as the commod engine servic servic
Co. parent ity andprovidin ering es es
Ltd. g of servic
labors es
Related-
party
Shenzhe transacti
n Bay Wholly- ons
Technol owned governi Manasubsidia ng gemen Markeogy t Agree
30
Develop ry of the purchas t princi ment 8651.83 6.00% 8100 Yes Cash 8651.83 March
ment Compan e of servicy as the commod es ple
price 2022
Co.Ltd. parent ity andprovidin
g of
labors
Shenzhe
n Wholly- Truste
Shentou owned esubsidia manag Marke 30Real Agree
Estate ry of the
Trustees t
hip ement ment 4405.74 34.41% 7883.01 No Cash 4405.74 March
Develop Compan servic
princi
ple price 2022
ment y as the es of
Co.Ltd. parent houses
28906.2
Total -- -- 29169.89 -- -- -- -- -- --7
78ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Large-amount sales return in detail N/A
The total amount of daily related-party transactions of the Company in 2022 is expected to be
RMB262399800 and the actual total amount is RMB330527800. The mainly reason for the difference
is that: during the Reporting Period the Company completed the acquisition of five enterprises which
Give the actual situation in the Reporting caused the changes in the scope of consolidated financial statements of the Company. The five
Period (if any) where an estimate had
been made for the total value of enterprises are Shenzhen Property Management Co. Ltd. Shenzhen Foreign Trade Property
continuing related-party transactions by Management Co. Ltd. Shenzhen Shenfubao Property Development Co. Ltd. Shenzhen Shenfubao
type to occur in the Reporting Period Hydropower Municipal Service Co. Ltd. and Shenzhen Free Trade Zone Security Service Co. Ltd. The
total amount of daily related-party transactions conducted by above five enterprises and SIHC as well as
its subordinate companies is RMB82011900. For details please refer to the Announcement on
Estimated Continuing Related-party Transactions in 2023 disclosed on the same day of 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 current period rate (RMB’00 (RMB’00
Company purposes 00) period
(yes/no) (RMB’00
(RMB’00 00) 00)
00)00)
The
parent
company
of the Business
Shenzhen subsidiary circulatin
Xinhai Rongyao g funds
Holdings Real before No 40150.00 20000.00 20150.00
Co. Ltd. Estate’s acquisitio
minority n
sharehold
er Xinhai
Rongyao
Shenzhen Minority Business
Xinhai sharehold circulatin
Rongyao er of the g funds
Real subsidiary before No 33047.29 33047.29
Estate Rongyao acquisitio
Develop Real n
79ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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 financial
results conditions.and
financial
condition
Liabilities payable to related parties
Amount Amount
Relation Beginning newly added returned in Current
Related party with the Formation balance in current current Interes interest
Ending
balance
Company reason (RMB’00 period period t rate (RMB’0000) (RMB’000 (RMB’000 00) (RMB’000
0)0)0)
Shenzhen Jifa
Warehouse Co. Joint vent Intercoursure e funds 3879.67 350.00 4229.67Ltd.Shenzhen Tian’an
International
Building Property Joint vent Intercours 521.43 521.43
Management Co. ure e funds
Ltd.Influence on the
Company’s
operating results All were within the risks control of the Company and not influenced the operating results and the financial
and 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
At the 14th Meeting of the 10th Board of Directors held on 23 December 2022 the Company reviewed and approved the Proposal
on the Signing of the Agreement and Related-party Transactions between a Wholly-owned Subsidiary and a Related Party.Shenzhen SZPRD Yanzihu Development Co. Ltd. (hereinafter referred to “Yanzihu Company”) a wholly-owned subsidiary of theCompany intends to enter into an agreement with Shenzhen Tianjun Industrial Co. Ltd. (hereinafter referred to as “TianjunCompany” a subordinate company of the controlling shareholder SIHC’s wholly-owned subsidiary China Shenzhen Foreign Trade
(Group) Corp. Ltd. on a voluntary equal and consensual basis. To successfully promote the urban renewal project of Tianjun
Industrial Park in Pingshan District Shenzhen (hereinafter referred to as “Project”) Tianjun Company plans to leave the lands and
properties of Tianjun Industrial Park held by it (hereinafter referred to as “Subject Assets”) to the management of Yanzihu
Company in advance. And Yanzihu Company agreed to pay RMB27 million to Tianjun Company as one part of the overall
relocation compensation and resettlement fee of the Project. No transfer of ownership of any assets will occur in this transaction
and Yanzihu will take over the park to facilitate the development of the Project.
80ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Index to announcements on major related-party transactions
Announcement Disclosure time Disclosure website
Announcement on the Signing of the
Agreement and Related-party
24 December 2022 http://www.cninfo.com.cn
Transactions between a Wholly-owned
Subsidiary and a Related Party
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
of the Line of Actual Actual
Guarante
Type of Counterguarante Term of Having e for aObligor guarante guarante occurren e guarante
Collatera
guarante guarante expired related
e 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 Actual Guaranteof the Line of Actual Type of Counter Term of Having e for a
Obligor guarante guarante occurren guarantee guarante
Collatera
guarante guarante expired related
e line e ce date e l (if any)amount e (if any) e or not party orannounc not
ement
Shenzhe
n 18
2727
Rongyao October
Security
500000 Novemb 299940 Novemb No Yes
deposit er 2019
Real 2019 er 2019 to 20
81ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Estate Novemb
Develop er 2024
ment
Co. Ltd.Total approved line Total actual balance
for such guarantees of such guarantees at
at the end of the 500000 the end of the 299940
Reporting Period Reporting Period
(B3) (B4)
Guarantees provided between subsidiaries
Disclosu
re date Guarante
of the Line of Actual Actualguarante Type of Counter Term of Having e for aObligor guarante guarante occurren e guarante
Collatera
guarante guarante expired related
e line e ce date 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 actual
Total approved
guarantee balance at
guarantee line at the
500000 the end of the 299940
end of the Reporting
Reporting Period
Period (A3+B3+C3)
(A4+B4+C4)
Total actual guarantee amount (A4+B4+C4)
67.97%
as % of the Company’s net assets
Of which:
Balance of debt guarantees provided directly
or indirectly for obligors with an over 70% 299940
debt/asset ratio (E)
Total of the three amounts above (D+E+F) 299940
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.XVI Other Significant Events
□Applicable □ Not applicable
82ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
(I) Matters on winning of the bid for land use right
On 18 February 2022 the Company and Yangzhou Lvfa Real Estate Co. Ltd. by joint bidding won the state-owned land use
right of No. GZ342 land plot in Pingshan Township Yangzhou at a price of RMB835352910 in the online listing auction of
state-owned construction land use right in Yangzhou. For details see the Announcement on Winning of the Bid for Land Use
Right (Announcement No.: 2022-02) disclosed by the Company on Cninfo (www.cninfo.com.cn) on 19 February 2022.(II) Matters on appointment of senior managers of the Company
The Company held the Sixth Meeting of the 10th Board of Directors on 21 February 2022 where the Proposal on Appointment of
General Manager of the Company the Proposal on Appointment of Deputy General Manager and Officer in Charge of Finance of
the Company and the Proposal on Appointment of Chief Financial Officer of the Company were reviewed and approved and the
Board of Directors agreed to appoint Mr. Wang Hangjun as general manager of the Company Mr. Chen Hongji Ms. Cai Lili Mr.Li Peng and Mr. Zhang Gejian as deputy general managers of the Company with Ms. Cai Lili concurrently serving as officer in
charge of finance of the Company and Ms. Shen Xueying as chief financial officer of the Company. The term of office of the
senior managers above starts from the date of review and approval at the Sixth Meeting of the 10th Board of Directors and expires
on the date of expiration of the term of office of the 10th Board of Directors. For details see the Announcement on Appointment
of Senior Managers of the Company (Announcement No.: 2022-04) disclosed by the Company on Cninfo (www.cninfo.com.cn)
on 22 February 2022.(III) Matters on changes of directors and supervisors of the Company
During the Reporting Period Mr. Wei Xiaodong a director of the Company applied for resignation from the position of non-
independent director and staff representative director of the 10th Board of Directors for reason of job transfer; Mr. Dai Xianhua a
supervisor of the Company applied for resignation from the position of supervisor and chairman of the Board of Supervisors for
reaching the statutory retirement age. The Company held the Congress of Workers and Staff on 29 June 2022 where Mr. Zhang
Zhimin was elected as staff representative director of the 10th Board of Directors of the Company whose term of office shall
expire upon expiration of the term of office of the 10th Board of Directors. The Company held the Seventh Meeting and Eighth
Meeting of the Tenth Board of Supervisors respectively on 4 July 2022 and 20 July 2022 and held the General Meeting of
Shareholders on 20 July 2022 where Mr. Ma Hongtao was elected as supervisor and chairman of the Board of Supervisors whose
term of office shall expire upon expiration of the term of office of the 10th Board of Supervisors. For details see the
Announcement on Resignation of Directors and Election of Staff Representative Director (Announcement No.: 2022-20)
Announcement on Proposed Change of Supervisors of the Company (Announcement No.: 2022-29) and Announcement on
Election of Chairman of the Board of Supervisors (Announcement No.: 2022-33) disclosed by the Company on Cninfo
(www.cninfo.com.cn) respectively on 30 June 2022 5 July 2022 and 21 July 2022.(IV) Matters on progress of acquisition by the wholly-owned subsidiary of 100% equity in Shenzhen Property
Management Co. Ltd. three enterprises owned by Shenzhen Shenfubao (Group) Co. Ltd. and Shenzhen Foreign Trade
Property Management Co. Ltd. and progress of relevant connected transactions
During the Reporting Period all relevant procedures for industrial and commercial change registration were handled and the
Notice of Change (for Recordation) approved by Shenzhen Market Supervision Administration was obtained for acquisition by
Shenzhen International Trade Center Property Management Co. Ltd. (a wholly-owned subsidiary of the Company) of 100%
equity in Shenzhen Property Management Co. Ltd. Shenzhen Shenfubao Property Development Co. Ltd. Shenzhen Shenfubao
Hydropower Municipal Service Co. Ltd. Shenzhen Free Trade Zone Security Service Co. Ltd. and Shenzhen Foreign Trade
Property Management Co. Ltd. The equity transfer fund was paid upon the special audit by Baker Tilly China Certified Public
Accountants (LLP). Since then the acquisition of 100% equity in Shenzhen Property Management Co. Ltd. three enterprises
owned by Shenzhen Shenfubao (Group) Co. Ltd. and Shenzhen Foreign Trade Property Management Co. Ltd. as well as related-
party transactions have been officially completed. For details see the Announcement on Progress of Acquisition by the Wholly-
owned Subsidiary of 100% Equity in Shenzhen Property Management Co. Ltd. and Progress of Relevant Connected Transactions
(Announcement No.: 2022-01) Announcement on Progress of Acquisition by the Wholly-owned Subsidiary of 100% Equity in
83ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Three Enterprises Owned by Shenzhen Shenfubao (Group) Co. Ltd. and Progress of Relevant Connected Transactions
(Announcement No.: 2022-05) Announcement on Progress of Acquisition by the Wholly-owned Subsidiary of 100% Equity in
Shenzhen Foreign Trade Property Management Co. Ltd. and Progress of Relevant Connected Transactions (Announcement No.:
2022-06) Announcement on Completion of Acquisition by the Wholly-owned Subsidiary of 100% Equity in Three Enterprises
Owned by Shenzhen Shenfubao (Group) Co. Ltd. and Progress of Relevant Connected Transactions (Announcement No.: 2022-
39) and Announcement on Completion of Acquisition by the Wholly-owned Subsidiary of 100% Equity in Shenzhen Foreign
Trade Property Management Co. Ltd. and Progress of Relevant Connected Transactions (Announcement No.: 2022-40) disclosed
by the Company on Cninfo (www.cninfo.com.cn) respectively on 15 February 2022 25 February 2022 and 26 September 2022.(V) Matters on the holding subsidiary winning the bid of the land use right
In the Reporting Period the Company's subsidiary Yangzhou Wuhe Real Estate Co. Ltd successfully secured state-owned land
use rights for Plot GZ399 in Pingshan Township Yangzhou City. The acquisition was made through an online public bidding on
the state-owned construction land use rights platform of Yangzhou City with a transaction price of RMB179175420. This
strategic purchase will effectively bolster the company's land reserve and provide valuable resources to further advance its
industrial and urban development strategies in a sustainable manner. Additional information on this transaction can be found in the
"Announcement on the Subsidiary's Winning of Land Use Rights" (Announcement No. 2022-47) which was published by the
company on 17 November 2022 on the CNINFO website.XVII Significant Events of Subsidiaries
□Applicable□ Not applicable
84ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Part VII Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
Before Increase/decrease (+/-) After
Shares
Shares
as
as
divide
dividend Percen
Percenta New nd Subtot
Shares converte Other Shares tage
ge (%) issues conver al
d from (%)
ted
capital
from
reserves
profit
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-person 3326 0.00% 0 0 0 0 0 3326 0.00%
1.3 Shares held by other
domestic investors 1894980 0.32% 0 0 0 0 0 1894980 0.32%
Among which: shares
held by domestic legal 1894980 0.32% 0 0 0 0 0 1894980 0.32%
person
Shares held by domestic
natural person 0 0.00% 0 0 0 0 0 0 0.00%
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 person 0 0.00% 0 0 0 0 0 0 0.00%
2. Unrestricted shares 99.68594080786 99.68% 0 0 0 0 0 594080786
%
2.1 RMB ordinary 88.34
shares 526475543 88.34% 0 0 0 0 0 526475543 %
2.2 Domestically listed 11.34
foreign shares 67605243 11.34% 0 0 0 0 0 67605243 %
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 100.00 100.0595979092 0 0 0 0 0 595979092
%0%
Reasons for share changes:
□ Applicable□ Not applicable
Approval of share changes:
□ Applicable□ Not applicable
Transfer of share ownership:
85ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
□ 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
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
sharehol
ders at Number of Number of preferred
the preferred shareholders with
Number of
month- shareholders resumed voting rights at
ordinary 48233 45859 0 0
end with resumed the month-end prior to
shareholders
prior to voting rights the disclosure of this
the (if any) Report (if any)
disclosu
re of
this
Report
5% or greater shareholders or top 10 shareholders
Name of Nature of
Shareho
lding Total shares
Increase/decr Shares marked in
shareholde held at the ease in the Restricted Unrestricted pledge or frozenshareholder r percentage period-end
Reporting shares held shares held
Period Status Shares
86ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Shenzhen State-
Investment owned 50.57% 301414637 0 3326 301411311
Holdings Co. Ltd. legalperson
Shenzhen State- Domestic
owned Equity non-state-
Management Co. owned 6.38% 38037890 0 0 38037890
Ltd. legalperson
China Orient State-
Asset owned
Management Co. legal 2.77% 16491402 -6744998 0 16491402
Ltd. person
Domestic
Duan Shaoteng natural 0.29% 1755565 0 0 1755565
person
Shenzhen Duty- Domestic
Free Commodity non-state-
Enterprises Co. owned 0.29% 1730300 0 1730300 0
Ltd. legalperson
Domestic
Yang Yaochu natural 0.27% 1640984 140600 0 1640984
person
State-
CITIC Securities owned
0.25%1545368154536801545368
Company Limited legal
person
Domestic
Li Xinyi natural 0.25% 1500000 -2050100 0 1500000
person
Shenzhen
Hengbang
Zhaofeng Private
Equity Fund
Management Co.Other 0.22% 1303100 1303100 0 1303100
Ltd.-Hengbang
Xiangshang Win-
Win Growth No.1
Private Equity
Investment Fund
Domestic
Mai Furong natural 0.20% 1244596 141500 0 1244596
person
Strategic investor or general
legal person becoming a top-10
ordinary shareholder due to N/A
rights issue (if any)
Related or acting-in-concert The largest shareholder Shenzhen Investment Holdings Co. Ltd. is the controlling
parties among the shareholders shareholder of the Company and Shenzhen State-owned Equity Management Co. Ltd. And the
above Company does not know whether there are related parties or acting-in-concert parties amongthe other shareholders.Explain if any of the
shareholders above was
involved in entrusting/being N/A
entrusted with voting rights or
waiving voting rights
Special account for share
repurchases (if any) among the N/A
top 10 shareholders
Top 10 unrestricted shareholders
Name of shareholder Unrestricted shares held at the period-
Shares by type
end Type Shares
87ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Shenzhen Investment Holdings Co.Ltd. 301411311 RMB common share 301411311
Shenzhen State-owned Equity
Management Co. Ltd. 38037890 RMB common share 38037890
China Orient Asset Management Co.Ltd. 16491402 RMB common share 16491402
Duan Shaoteng 1755565 RMB common share 1755565
Yang Yaochu 1640984 Domestically listedforeign share 1640984
CITIC Securities Company Limited 1545368 RMB common share 1545368
Li Xinyi 1500000 RMB common share 1500000
Shenzhen Hengbang Zhaofeng
Private Equity Fund Management
Co. Ltd.-Hengbang Xiangshang Win- 1303100 RMB common share 1303100
Win Growth No.1 Private Equity
Investment Fund
Mai Furong 1244596 Domestically listedforeign share 1244596
You Jianping 1214700 RMB common share 1214700
Related or acting-in-concert parties
among top 10 unrestricted public The largest shareholder Shenzhen Investment Holdings Co. Ltd. is the controlling
shareholders as well as between top shareholder of the Company and Shenzhen State-owned Equity Management Co. Ltd.
10 unrestricted public shareholders And the Company does not know whether there are related parties or acting-in-concert
and top 10 shareholders parties among the other shareholders.Top 10 ordinary shareholders
involved in securities margin trading N/A
(if any)
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/pe Date of Unified social creditshareholder establishment code Principal activityrson in
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
Shenzhen Investment He within the scale of legally acquire the
Holdings Co. Ltd. Jianfeng 13 October 2004 914403007675664218 land use right; to execute investmentsand services in strategic emerging
industry; to execute the investment
operating and management of the
state-owned equities of the wholly-
owned controlling and stock-
participating enterprises through the
methods such as the restructuring
88ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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).Shenzhen Textile A (000045) holds 234.07 million shares accounting for 46.10%;
SPGA (000029) holds 642.88 million shares accounting for 63.55%;
Shenzhen Universe A (000023) holds 9.59 million shares accounting for 6.91%;
Ping’an (601318) holds 962.72 million shares accounting for 5.27%;
Guosen Securities (002736) holds 3223.11 million shares accounting for 33.53%;
Guotai Jun’an (601211) holds 609.43 million A-shares and 103.37 million H-shares totally
Shareholdings of the accounting for 8.00%;
controlling shareholder in Telling Telecommunication (000829) holds 195.03 million shares accounting for 18.89%;
other listed companies at Shenzhen International (00152) holds 952.01 million shares accounting for 43.39%;
home or abroad in this Beauty Star (002243) holds 604.82 million shares accounting for 49.96%;
Reporting Period Bay Area Development (00737) holds 2213.45 million shares accounting for 71.83%;
Infinova (002528) holds 315.83 million shares accounting for 26.35%;
Eternal Asia (002183) holds 388.45 million shares accounting for 18.30%;
Shenzhen Energy (000027) holds 6.77 million shares accounting for 0.14%;
Bank of Communications (601328) holds 9.52 million shares accounting for 0.01%;
Techand (300197) holds 113.98 million shares accounting for 4.84%;
Vanke (02202) holds 77.27 million shares accounting for 0.67%.Change of the controlling shareholder in the Reporting Period:
□ Applicable□ Not applicable
The controlling shareholder remained the same in the Reporting Period.
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/ Date of Unified social
controller person in 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
Shenzhen Municipal state-owned assets and organizing
State-owned Assets implementation activities.Supervision and Wang Yongjian 1 July 2004 K31728067 (II) On the basis of authorization from
Administration municipal government fulfilling duties of
Commission investors according to laws andregulations 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 further perfecting the
89ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
management mechanism for state-owned
assets with the unification of power
obligation and duties as well as the
combination of managing assets people
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
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
90ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
(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
other listed companies Listed companies such as the Shenzhen Airport YTP Shenzhen Energy Shenzhen Zhenye Shenzhen
at home or abroad in Tagen and SDGI.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
91ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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
92ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Part VIII Preference Shares
□Applicable□ Not applicable
No preference shares in the Reporting Period.
93ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Part IX Bonds
□Applicable□ Not applicable
94ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Part X Financial Statements
I. Auditor’s Report
Type of the independent auditor’s opinion Unmodified unqualified opinion
Date of signing this report 24 March 2023
Name of the independent auditor Baker Tilly China Certified Public Accountants (LLP)
Reference number of Audit Report Baker Tilly YZ[2023]No. 13206
Name of the certified public accountants Chen Zihan Zhong Qinfang
Text of the Auditor’s Report
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 2022 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 2022 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
SZPRD achieved a revenue of RMB1.914 billion from realOur audit procedures for this key audit issue include:
estate development projects in 2022 accounting for 51.60% ofUnderstanding and sampling key control measures related to
the total operating revenue. SZPRD confirms revenue from realproperty sales business to evaluate the effectiveness of
estate development projects when all the following conditions implementation of control procedures.are met: (1) Real estate products of sales contracts underObtaining and reviewing completion acceptance documents of
development are completed and accepted; (2) Irreversible salesprojects; reviewing property sales contracts and verifying the
contracts are signed and buyers’ payment certificates areauthenticity of revenue from property sales recognized in this
received; (3) Notice of property acceptance is issued. year; checking original collection certificates or certificates of
95ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
The recognition and measurement of revenue from real estatebank mortgage procedures to determine whether full payment
business has a significant impact on the operating results ofamount is received; reviewing admission notice or other
SZPRD which may be inaccurately measured or recognized insupporting documents on delivery of properties to evaluate
improper accounting period. Therefore we regard thewhether revenue from property sales meets the conditions for
recognition and measurement of real estate development andrevenue recognition as stipulated by the Company’s accounting
sales revenue as key audit issues. policy.For accounting policies and details of revenue from real estateObtaining and reviewing supporting documents for property
development and sales please refer to Note III (28) VI (37) todelivery before and after the balance sheet date to evaluate
the financial statement. whether revenue from property sales is recorded in proper
accounting period.
2. Provision of increment tax on land value
The Company shall pay increment tax on land value at the rateOur audit procedures for this key audit issue include:
of 30-60% of extra progressive tax rate of increment amount onObtaining calculation data of increment tax on land value of
land value for real estate sales and development. At the end ofmain real estate development projects to review and calculate
each financial reporting period the Management shall estimate the accuracy of amount of increment tax on land value accrued
the provision amount of increment tax on land value. Whenby the Company in this year.making estimation judgment main factors to be included inCombining the audit revenue from real estate sales to review the
consideration shall include the provisions and explanations ofrationality of estimated amount of revenue from real estate sales
relevant tax laws and regulations the amount of estimatedmade by the Management in the calculation of increment tax on
revenue from sale of real estate minus estimated deductible landland value.cost real estate development cost interest expense andCombining inventory audit to review the accuracy of land cost
development cost etc. The actual amount in final settlement real estate development cost interest expense and development
payable by SZPRD for increment tax on land value may becost deducted by the Management in the calculation of
different from the estimated amount. increment tax on land value.As the importance of provision of increment tax on land value
on the profit and loss of real estate enterprises and Management
includes the understanding of relevant tax laws and regulations
and actual practices in consideration for estimation judgment
we determine the provision of increment tax on land value of
SZPRD as a key audit issue.
4. Other InformationThe Company’s management (hereinafter referred to as the Management”) is responsible for the other information. The other
information comprises all of the information included in the Company’s 2022 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
96ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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.
(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.Baker Tilly YZ [2023] No.13206
97ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Beijing·China
24 March 2023 Chinese CPA Chen Zihan
(Engagement Partner):
Chinese CPA: Zhong Qinfang
II Financial Statements
Currency unit for the financial statements and the notes thereto: RMB
98ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
1. Consolidated Balance Sheet
Prepared by Shenzhen Properties & Resources Development (Group) Ltd.
31 December 2022
Unit: RMB
Item 31 December 2022 1 January 2022
Current assets:
Monetary assets 1517528893.83 2280821442.11
Settlement reserve
Interbank loans granted
Held-for-trading financial assets
Derivative financial assets
Notes receivable 200000.00
Accounts receivable 419933915.30 293985139.93
Accounts receivable financing
Prepayments 100341806.56 70979023.99
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract reserve
Other receivables 639903523.33 926361533.14
Including: Interest receivable
Dividends receivable
Financial assets purchased under resale
agreements
Inventories 10975334223.37 9125134062.27
Contract assets 1094632.90
Assets held for sale
Current portion of non-current assets
Other current assets 65655266.27 58996984.81
Total current assets 13719792261.56 12756478186.25
Non-current assets:
Loans and advances to customers
Investments in debt obligations
Investments in other debt obligations
Long-term receivables 22651454.07 23831889.11
Long-term equity investments 79781437.31 50360681.37
Investments in other equity
instruments 887838.64 1002551.95
Other non-current financial assets
Investment property 405762739.18 459204609.35
Fixed assets 82745172.12 114155590.40
Construction in progress
Productive living assets
Oil and gas assets
Right-of-use assets 70168415.65 71472680.73
Intangible assets 1269382.91 1753389.33
Development costs
Goodwill 9446847.38 9446847.38
Long-term prepaid expense 21980602.46 22751829.74
Deferred income tax assets 1383050586.04 1279816590.32
Other non-current assets 2750873.08 45571997.85
Total non-current assets 2080495348.84 2079368657.53
Total assets 15800287610.40 14835846843.78
Current liabilities:
Short-term borrowings
Borrowings from the central bank
Interbank loans obtained
99ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 608283388.52 351894812.23
Advances from customers 2260847.31 1381666.59
Contract liabilities 920828040.81 1374165809.40
Financial assets sold under repurchase
agreements
Customer deposits and interbank
deposits
Payables for acting trading of securities
Payables for underwriting of securities
Employee benefits payable 239126392.02 230618067.23
Taxes payable 3917278346.81 3316590190.34
Other payables 1515085832.45 1027622090.94
Including: Interest payable
Dividends payable 12202676.04 17542675.98
Handling charges and commissions
payable
Reinsurance payables
Liabilities directly associated with
assets held for sale
Current portion of non-current
liabilities 218858766.82 83924701.83
Other current liabilities 83991786.83 77403624.02
Total current liabilities 7505713401.57 6463600962.58
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 3618782344.00 3524500000.00
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 77963283.55 83081182.89
Long-term payables
Long-term employee benefits payable
Provisions 766612.52 1425490.50
Deferred income
Deferred income tax liabilities 241978.54 307853.79
Other non-current liabilities 128008919.79 126059683.08
Total non-current liabilities 3825763138.40 3735374210.26
Total liabilities 11331476539.97 10198975172.84
Owners’ equity:
Share capital 595979092.00 595979092.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 80488045.38 154342349.00
Less: Treasury stock
Other comprehensive income -3854377.95 -8174653.66
Specific reserve
Surplus reserves 48886605.81 47574940.18
General reserve
100ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Retained earnings 3691056182.73 3800330330.23
Total equity attributable to owners of the
Company as the parent 4412555547.97 4590052057.75
Non-controlling interests 56255522.46 46819613.19
Total owners’ equity 4468811070.43 4636871670.94
Total liabilities and owners’ equity 15800287610.40 14835846843.78
Legal representative: Liu Shengxiang Head of financial affairs: Cai Lili Head of the financial department: Liu Qiang
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 31 December 2022 1 January 2022
Current assets:
Monetary assets 532263736.63 1177352486.44
Held-for-trading financial assets
Derivative financial assets
Notes receivable
Accounts receivable 5137042.71 2223974.66
Accounts receivable financing
Prepayments 5400.00
Other receivables 5162396869.45 2412506681.28
Including: Interest receivable
Dividends receivable 151433108.41
Inventories 793075051.53 2343857737.13
Contract assets
Assets held for sale
Current portion of non-current assets
Other current assets 18130015.97 496729.09
Total current assets 6511002716.29 5936443008.60
Non-current assets:
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 1447747317.70 1109826561.76
Investments in other equity
instruments 1118338.64 1233051.95
Other non-current financial assets
Investment property 260599477.89 283198989.66
Fixed assets 31577309.67 41133269.92
Construction in progress
Productive living assets
Oil and gas assets
Right-of-use assets 3238351.85 4075422.31
Intangible assets
Development costs
Goodwill
Long-term prepaid expense 860115.06 259463.73
Deferred income tax assets 152942094.59 190014842.35
Other non-current assets 2362376650.86 1718846484.20
Total non-current assets 4260459656.26 3348588085.88
101ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Total assets 10771462372.55 9285031094.48
Current liabilities:
Short-term borrowings
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 41228778.20 48640839.24
Advances from customers 952186.65 425164.77
Contract liabilities 840878470.63 524139983.49
Employee benefits payable 56425731.67 49313279.30
Taxes payable 1783757.84 4678424.25
Other payables 7258663180.38 5963004158.44
Including: Interest payable
Dividends payable 29642.40 29642.40
Liabilities directly associated with
assets held for sale
Current portion of non-current
liabilities 190431469.82 65163793.74
Other current liabilities 75679062.35 47172598.51
Total current liabilities 8466042637.54 6702538241.74
Non-current liabilities:
Long-term borrowings 462000000.00 525100000.00
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 1947178.87 2976367.29
Long-term payables
Long-term employee benefits payable
Provisions
Deferred income
Deferred income tax liabilities
Other non-current liabilities 40000000.00 40000000.00
Total non-current liabilities 503947178.87 568076367.29
Total liabilities 8969989816.41 7270614609.03
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 -2742841.65 -2574121.54
Specific reserve
Surplus reserves 48886605.81 29637548.47
Retained earnings 1105473319.87 1337497586.41
Total owners’ equity 1801472556.14 2014416485.45
102ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Total liabilities and owners’ equity 10771462372.55 9285031094.48
3. Consolidated Income Statement
Unit: RMB
Item 2022 2021
1. Revenue 3708669046.85 4911120528.33
Including: Operating revenue 3708669046.85 4911120528.33
Interest revenue
Insurance premium income
Handling charge and commission
income
2. Costs and expenses 3142047245.48 3584941653.00
Including: Cost of sales 1978777621.22 1827382823.18
Interest costs
Handling charge and commission
expense
Surrenders
Net insurance claims paid
Net amount provided as insurance
contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surcharges 725920657.80 1352677993.06
Selling expense 53541997.78 73372016.02
Administrative expense 329991655.74 323975355.61
R&D expense 3244129.11 2171797.80
Finance costs 50571183.83 5361667.33
Including: Interest expense 64941564.63 75361420.03
Interest income 21591864.72 75033921.17
Add: Other income 19484058.67 32012226.29
Return on investment (“-” for loss) 1981330.90 6609725.37
Including: Share of profit or loss of joint
ventures and associates 2040461.81 4650460.58
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 193746.57
Credit impairment loss (“-” for loss) -17395139.90 -29194857.89
Asset impairment loss (“-” for loss) -528430.23 23120.82
Asset disposal income (“-” for loss) 175810605.44 27.94
3. Operating profit (“-” for loss) 746091308.44 1335822864.43
Add: Non-operating income 7198004.28 15587559.41
Less: Non-operating expense 2556893.74 7495978.90
4. Profit before tax (“-” for loss) 750732418.98 1343914444.94
Less: Income tax expense 221391811.02 335904738.19
5. Net profit (“-” for net loss) 529340607.96 1008009706.75
5.1 By operating continuity
5.1.1 Net profit from continuing
operations (“-” for net loss) 529340607.96 1008009706.75
103ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
5.1.2 Net profit from discontinued
operations (“-” for net loss)
5.2 By ownership
5.2.1 Net profit attributable to
shareholders of the Company as the 537664698.69 1025380909.03
parent
5.2.1 Net profit attributable to non-
controlling interests -8324090.73 -17371202.28
6. Other comprehensive income net of
tax 4320275.71 -1425064.25
Attributable to owners of the Company
as the parent 4320275.71 -1425064.25
6.1 Items that will not be reclassified to
profit or loss -168720.11 -28670.35
6.1.1 Changes caused by
remeasurements on defined benefit
schemes
6.1.2 Other comprehensive income that
will not be reclassified to profit or loss
under the equity method
6.1.3 Changes in the fair value of
investments in other equity instruments -168720.11 -28670.35
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 4488995.82 -1396393.90
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- 4488995.82 -1396393.90
denominated financial statements
6.2.7 Other
Attributable to non-controlling interests
7. Total comprehensive income 533660883.67 1006584642.50
Attributable to owners of the Company
as the parent 541984974.40 1023955844.78
Attributable to non-controlling interests -8324090.73 -17371202.28
8. Earnings per share
8.1 Basic earnings per share 0.9022 1.7205
8.2 Diluted earnings per share 0.9022 1.7205
Where business combinations under common control occurred in the Current Period the net profit achieved by the acquirees
before the combinations was RMB9596148.16 with the amount for the same period of last year being RMB21251005.70.Legal representative: Liu Shengxiang Head of financial affairs: Cai Lili Head of the financial department: Liu Qiang
4. Income Statement of the Company as the Parent
Unit: RMB
Item 2022 2021
1. Operating revenue 75486414.74 80529601.93
Less: Cost of sales 44999240.65 38571950.27
104ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Taxes and surcharges 5106898.84 7146348.46
Selling expense 400095.36 2006401.50
Administrative expense 102699790.62 95334812.14
R&D expense
Finance costs 6565334.70 -34874500.11
Including: Interest costs 27016860.03 25501758.97
Interest revenue 13235541.77 63489075.60
Add: Other income 183849.33 20102972.08
Return on investment (“-” for loss) 313407689.63 134368018.21
Including: Share of profit or loss of joint
ventures and associates 2040461.81 4650460.58
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) 280304.06 -356512.44
Asset impairment loss (“-” for loss)
Asset disposal income (“-” for loss)
2. Operating profit (“-” for loss) 229586897.59 126459067.52
Add: Non-operating income 7173820.40
Less: Non-operating expense 23576.47 169457.44
3. Profit before tax (“-” for loss) 229563321.12 133463430.48
Less: Income tax expense 37072747.76 29147742.04
4. Net profit (“-” for net loss) 192490573.36 104315688.44
4.1 Net profit from continuing
operations (“-” for net loss) 192490573.36 104315688.44
4.2 Net profit from discontinued
operations (“-” for net loss)
5. Other comprehensive income net of
tax -168720.11 -28670.35
5.1 Items that will not be reclassified to
profit or loss -168720.11 -28670.35
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 -168720.11 -28670.35
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
105ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
translation of foreign currency-
denominated financial statements
5.2.7 Other
6. Total comprehensive income 192321853.25 104287018.09
7. Earnings per share
7.1 Basic earnings per share 0.3230 0.1750
7.2 Diluted earnings per share 0.3230 0.1750
5. Consolidated Cash Flow Statement
Unit: RMB
Item 2022 2021
1. Cash flows from operating activities:
Proceeds from sale of commodities and
rendering of services 3437128020.73 5848887354.06
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 10058351.98 42434277.83
Cash generated from other operating
activities 1078867968.60 354846811.16
Subtotal of cash generated from
operating activities 4526054341.31 6246168443.05
Payments for commodities and services 2510779597.33 4893470956.31
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 983205651.52 941865001.94
Taxes paid 688906681.47 1533290206.83
Cash used in other operating activities 237929307.13 706522030.42
Subtotal of cash used in operating
activities 4420821237.45 8075148195.50
Net cash generated from/used in
operating activities 105233103.86 -1828979752.45
2. Cash flows from investing activities:
Proceeds from disinvestment 297479.85
106ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Return on investment 122536.02
Net proceeds from the disposal of fixed
assets intangible assets and other long- 197192641.96 112437.89
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 197490121.81 234973.91
Payments for the acquisition of fixed
assets intangible assets and other long- 17734048.21 24851720.82
lived assets
Payments for investments 27380294.13
Net increase in pledged loans granted
Net payments for the acquisition of
subsidiaries and other business units 4292240.68
Cash used in other investing activities
Subtotal of cash used in investing
activities 45114342.34 29143961.50
Net cash generated from/used in
investing activities 152375779.47 -28908987.59
3. Cash flows from financing activities:
Capital contributions received 17760000.00 2140000.00
Including: Capital contributions by non-
controlling interests to subsidiaries 17760000.00 2140000.00
Borrowings raised 285589674.44
Cash generated from other financing
activities
Subtotal of cash generated from
financing activities 303349674.44 2140000.00
Repayment of borrowings 63300000.00 31000000.00
Interest and dividends paid 593986146.21 482143700.54
Including: Dividends paid by subsidiaries
to non-controlling interests
Cash used in other financing activities 306511487.27 62778403.22
Subtotal of cash used in financing
activities 963797633.48 575922103.76
Net cash generated from/used in
financing activities -660447959.04 -573782103.76
4. Effect of foreign exchange rates
changes on cash and cash equivalents 4790697.94 -1487028.62
5. Net increase in cash and cash
equivalents -398048377.77 -2433157872.42
Add: Cash and cash equivalents
beginning of the period 1907742235.25 4340900107.67
6. Cash and cash equivalents end of the
period 1509693857.48 1907742235.25
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item 2022 2021
1. Cash flows from operating activities:
Proceeds from sale of commodities and
rendering of services 421114781.33 655800441.53
Tax rebates 33168933.87
Cash generated from other operating
activities 1762436455.47 2571773113.99
107ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Subtotal of cash generated from
operating activities 2183551236.80 3260742489.39
Payments for commodities and services 97820597.35 1726321339.89
Cash paid to and for employees 65677185.99 63355236.26
Taxes paid 34805390.11 12501445.12
Cash used in other operating activities 1082444909.69 3120104282.29
Subtotal of cash used in operating
activities 1280748083.14 4922282303.56
Net cash generated from/used in
operating activities 902803153.66 -1661539814.17
2. Cash flows from investing activities:
Proceeds from disinvestment 1841000000.00 50000000.00
Return on investment 473625777.76
Net proceeds from the disposal of fixed
assets intangible assets and other long- 209.00 2344.57
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 2314625986.76 50002344.57
Payments for the acquisition of fixed
assets intangible assets and other long- 1154885.13 2309879.80
lived assets
Payments for investments 3124506071.91 466000000.00
Net payments for the acquisition of
subsidiaries and other business units
Cash used in other investing activities
Subtotal of cash used in investing
activities 3125660957.04 468309879.80
Net cash generated from/used in
investing activities -811034970.28 -418307535.23
3. Cash flows from financing activities:
Capital contributions received
Borrowings raised 125000000.00
Cash generated from other financing
activities
Subtotal of cash generated from
financing activities 125000000.00
Repayment of borrowings 63100000.00 30800000.00
Interest and dividends paid 432215867.55 269890778.58
Cash used in other financing activities 1603790.70 1198076.70
Subtotal of cash used in financing
activities 496919658.25 301888855.28
Net cash generated from/used in
financing activities -371919658.25 -301888855.28
4. Effect of foreign exchange rates
changes on cash and cash equivalents 12768.24 -12608.83
5. Net increase in cash and cash
equivalents -280138706.63 -2381748813.51
Add: Cash and cash equivalents
beginning of the period 808411401.68 3190160215.19
6. Cash and cash equivalents end of the
period 528272695.05 808411401.68
108ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
7. Consolidated Statements of Changes in Owners’ Equity
2022
Unit: RMB
2022
Equity attributable to owners of the Company as the parent
Other equity Othe Non-
instruments r contr
Item Shar Capi Less: com Spec Surp Gene Retai ollin Total owners’
e Prefe Perp tal Trea preh ific lus ral ned Othe Subt g equity
capit rred etual Othe reser sury ensiv reser reser reser earni r otal inter
al share bond r ves stock e ve ves ve ngs ests
s s inco
me
-
1. Balance 595 804 817 296 378 448 449
as at the end 979 880 465 375 818 611 796 453109046
of the prior 092. 45.3 3.6 48.4 075 079 74.1 4.58
year 00 8 7 8.20 0.39 9
6
Add:
Adjustment
for change
in
accounting
policy
Adjustment
for
correction
of previous
error
Adjustment
for business 738 179 121 103
combination 183
under 543 373 495 941 105781206.993
common 03.6 91.7 72.0 267. 369.00
control 2 1 3 36
Other
adjustments
2. Balance 595 -154 475 380 459 468
as at the 979 817
beginning of 342 749 033 005 196 463687167092. 465
the year 349. 40.1 033 205 13.1 0.9400 3.66
0080.237.759
-
3. Increase/ -738 -
decrease in 177543
the period 432
131109
166274496943
-
03.6168060600.
(“-” for 027 509. 5902 5.63 147. 51
decrease) 5.71 50 78 9.27
537541-
3.1 Total 432
comprehensi 664 984 832 533660883.027
ve income 698. 974. 409 675.71
69400.73
3.2 Capital - - - - 177 -
increased 738 179 222 314 600 296455701.and reduced 543 373 424 215 00.0 62
by owners 03.6 91.7 006. 701.2 1 29 62 0
109ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
3.2.1177
Ordinary
shares 600 17760000.0
increased by 00.0 0
owners 0
3.2.2
Capital
increased by
holders of
other equity
instruments
3.2.3 Share-
based
payments
included in
owners’
equity
----
738179222314-
543373424215314215701.
3.2.4 Other 03.6 91.7 006. 701. 62
212962
--
192
424405-
3.3 Profit 490
distribution 514 265 405265782.57.3
839.782.56
4
9056
3.3.1-192
Appropriati 192
on to 490 490
surplus 57.3 57.3
reserves 4 4
3.3.2
Appropriati
on to
general
reserve
3.3.3--
Appropriati 405 405 -
on to
owners (or 265 265 405265782.shareholders 782. 782. 56
)5656
3.3.4
Other
3.4
Transfers
within
owners’
equity
3.4.1
Increase in
capital (or
share
capital)
from capital
reserves
3.4.2
Increase in
capital (or
share
capital)
from surplus
110ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
reserves
3.4.3
Loss offset
by surplus
reserves
3.4.4
Changes in
defined
benefit
schemes
transferred
to retained
earnings
3.4.5
Other
comprehensi
ve income
transferred
to retained
earnings
3.4.6
Other
3.5 Specific
reserve
3.5.1
Increase in
the period
3.5.2
Used in the
period
3.6 Other -
595804-488369441562
4. Balance
as at the end 979 880 385 866 105 255 555 446881107
of the period 092. 45.3 437 05.8 618 554 22.4 0.43
0087.9512.737.976
2021
Unit: RMB
2021
Equity attributable to owners of the Company as the parent
Other equity Othe Non-
instruments r contr
Item Shar Capi Less: com Spec Surp Gene Retai ollin Total owners’
e Prefe Perp tal Trea preh ific lus ral ned Othe Subt g equity
capit rred etual Othe reser sury ensiv reser reser reser earni r otal inter
al share bond r ves stock e ve ves ve ngs ests
s s inco
me
1. Balance 595 804 - 192 303 372 532
as at the end 979 880 674 059 899 791 040 378112147
of the prior 092. 45.3 958 79.6 391 744 39.8 9.83
year 00 8 9.41 3 2.43 0.03 0
Add:
Adjustment
for change
in
accounting
policy
Adjustment
for
correction
of previous
error
111ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Adjustment
for business 738 179 - 825
combination 543 373
926
14930282530200.6
under 03.6 91.7 4.67 00.6 6
common 2 1 6
control
Other
adjustments
2. Balance 595 154 - 371 302 381 532
as at the 979 342 674 433 973 044 040 386365168
beginning of 092. 349. 958 71.3 241 764 39.8 0.49
the year 00 00 9.41 4 7.76 0.69 0
3. Increase/ - 104 770 779 -
decrease in
the period 142 315 597 604 638 773219990.(“-” for 506 68.8 912. 417. 442 45
decrease) 4.25 4 47 06 6.61
-
-102102
3.1 Total 173
comprehensi 142 538 395 100658464712
ve income 506 090 584 2.5002.2
4.259.034.78
8
3.2 Capital 109
increased 867 10986775.6
and reduced 75.6 7
by owners 7
3.2.1
Ordinary 214
shares 000 2140000.00
increased by 0.00
owners
3.2.2
Capital
increased by
holders of
other equity
instruments
3.2.3 Share-
based
payments
included in
owners’
equity
884
3.2.4 Other 677 8846775.67
5.67
--
104
254244-
3.3 Profit 315
distribution 782 351 244351427.68.8
996.427.72
4
5672
3.3.1-104
Appropriati 104
on to 315 315
surplus 68.8 68.8
reserves 4 4
3.3.2
Appropriati
on to
general
reserve
3.3.3---
112ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Appropriati 244 244 244351427.on to 351 351 72
owners (or
shareholders 427. 427.)7272
3.3.4
Other
3.4
Transfers
within
owners’
equity
3.4.1
Increase in
capital (or
share
capital)
from capital
reserves
3.4.2
Increase in
capital (or
share
capital)
from surplus
reserves
3.4.3
Loss offset
by surplus
reserves
3.4.4
Changes in
defined
benefit
schemes
transferred
to retained
earnings
3.4.5
Other
comprehensi
ve income
transferred
to retained
earnings
3.4.6
Other
3.5 Specific
reserve
3.5.1
Increase in
the period
3.5.2
Used in the
period
3.6 Other
595154-475380459468
4. Balance
as at the end 979 342 817 749 033 005 196 463687167
of the period 092. 349. 465 40.1 033 205 13.1 0.94
00003.6680.237.759
8. Statements of Changes in Owners’ Equity of the Company as the Parent
2022
113ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Unit: RMB
2022
Other equity instruments Other
Less: compr Surplu Retain
Item Share Capital SpecifiPreferr Perpet
capital reserve
Treasu ehensi c s edry ve reserve earnin Other
Total owners’
ed ual Other s reserve equity
shares bonds stock incom s gs
e
1. Balance as 59597 53876 - 29637 1337
at the end of 2014416485.9092. 380.1 2574 548.4 49758
the prior year 4500 1 121.54 7 6.41
Add:
Adjustment
for change in
accounting
policy
Adjustment
for correction
of previous
error
Other
adjustments
2. Balance as 59597 53876 - 29637 1337
at the 2014416485.beginning of 9092. 380.1 2574 548.4 49758 45
the year 00 1 121.54 7 6.41
3. Increase/ -- 19249
decrease in 23202 -
the period (“-” 16872 057.3 4266. 212943929.31
for decrease) 0.11 4 54
3.1 Total - 19249
comprehensiv 16872 0573. 192321853.25
e income 0.11 36
3.2 Capital
increased and
reduced by
owners
3.2.1 Ordinary
shares
increased by
owners
3.2.2 Capital
increased by
holders of
other equity
instruments
3.2.3 Share-
based
payments
included in
owners’ equity
3.2.4 Other
-
19249
3.3 Profit 42451 -
distribution 057.3 4839. 405265782.56
4
90
3.3.1-19249
Appropriation 19249
to surplus 057.3 057.3
reserves 4 4
3.3.2
Appropriation - -
to owners (or 40526 405265782.56
114ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
shareholders) 5782.
56
3.3.3 Other
3.4 Transfers
within
owners’ equity
3.4.1
Increase in
capital (or
share capital)
from capital
reserves
3.4.2
Increase in
capital (or
share capital)
from surplus
reserves
3.4.3 Loss
offset by
surplus
reserves
3.4.4
Changes in
defined
benefit
schemes
transferred to
retained
earnings
3.4.5 Other
comprehensiv
e income
transferred to
retained
earnings
3.4.6 Other
3.5 Specific
reserve
3.5.1
Increase in the
period
3.5.2 Used
in the period
3.6 Other
4. Balance as 59597 53876 - 48886 1105
at the end of 1801472556.9092. 380.1 2742 605.8 47331
the period 1400 1 841.65 1 9.87
2021
Unit: RMB
2021
Other equity instruments Other
Item Share Capital
Less: compr Specifi Surplu Retain
Preferr Perpet
capital reserve
Treasu ehensi
ry ve c
s ed Other Total owners’
ed ual Other s reserve earnin equity
shares bonds stock incom
reserve s gs
e
1. Balance as 59597 53876 - 19205 1487
at the end of 2154480895.9092. 380.1 2545 979.6 96489
the prior year 0800 1 451.19 3 4.53
Add:
Adjustment
for change in
115ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
accounting
policy
Adjustment
for correction
of previous
error
Other
adjustments
2. Balance as 59597 53876 - 19205 1487
at the 2154480895.beginning of 9092. 380.1 2545 979.6 96489 08
the year 00 1 451.19 3 4.53
3. Increase/ -- 10431
decrease in 15046 -
the period (“-” 28670 568.8 7308. 140064409.63
for decrease) .35 4 12
3.1 Total - 10431
comprehensiv 28670 5688. 104287018.09
e income .35 44
3.2 Capital
increased and
reduced by
owners
3.2.1 Ordinary
shares
increased by
owners
3.2.2 Capital
increased by
holders of
other equity
instruments
3.2.3 Share-
based
payments
included in
owners’ equity
3.2.4 Other
-
10431
3.3 Profit 25478 -
distribution 568.8 2996. 244351427.72
4
56
3.3.1-10431
Appropriation 10431
to surplus 568.8 568.8
reserves 4 4
3.3.2-
Appropriation 24435 -
to owners (or 1427. 244351427.72
shareholders) 72
3.3.3 Other
3.4 Transfers
within
owners’ equity
3.4.1
Increase in
capital (or
share capital)
from capital
reserves
3.4.2
Increase in
capital (or
116ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
share capital)
from surplus
reserves
3.4.3 Loss
offset by
surplus
reserves
3.4.4
Changes in
defined
benefit
schemes
transferred to
retained
earnings
3.4.5 Other
comprehensiv
e income
transferred to
retained
earnings
3.4.6 Other
3.5 Specific
reserve
3.5.1
Increase in the
period
3.5.2 Used
in the period
3.6 Other
4. Balance as 59597 53876 - 29637 1337
at the end of 2014416485.9092. 380.1 2574 548.4 49758
the period 4500 1 121.54 7 6.41
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
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 17th Meeting of the 10th Board of Directors of the Company
on 24 March 2023.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
117ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Company. There were 63 subsidiaries included in the consolidation financial statements in this report. Please refer to the Note VIII
and Note IX 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:
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
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. 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
118ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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
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
119ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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.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.
6. Methods for Preparing Consolidated Financial Statements
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.
7. 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.
120ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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)
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.
8. 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.
9. 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.
10. 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
121ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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
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
122ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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
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
123ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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.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 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
124ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
rate shall be accounted through exposure at default
and the expected credit loss rate within the entire life
Accounts receivable-other intercourse funds Account nature Consulting historical experience in credit losses
among related party 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 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.
11. Notes Receivable
Refer to Note V 10 Financial Instruments of the financial statements for details.
12. Accounts Receivable
Refer to Note V 10 Financial Instruments of the financial statements for details.
13. Accounts Receivable Financing
Not applicable.
14. Other Receivables
Recognition and accounting treatment methods regarding expected credit losses of other receivables
Refer to Note V 10 Financial Instruments of the financial statements for details.
15. Inventory
(1) Inventories Classification
Inventories include development land held for sale or consumption in the process of development and operation development
125ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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
16. 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.For contract assets that do not contain significant financing components the Company uses the simplified model of expected credit
loss measuring the loss provision according to an amount that is equivalent 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 an amount that is equivalent 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.
126ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
17. 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:
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.This cost has increased the Company’s sources that are used to fulfill its contract performance obligations in the future.This cost is expected to be recovered.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:
Residual consideration expected to be gained from transferring commodities and services related to this asset;
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.
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 this Standard.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 this Standard shall not be reversed before they are
127ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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 this Standard. 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-10. Financial Instrument for details.
22. Long-term Equity Investments
(1) Judgment of Joint Control and Significant Influences
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.When a long-term equity investment is formed from the business combination under common control through the Company’s
multiple transactions step by step the treatment shall be carried out based on whether the transactions constitute the “package deal”.If they do the accounting treatment shall be carried out on the basis of assuming all transactions as one transaction with the
acquisition of control. If they do not the initial investment cost shall be the portion of the carrying value of acquiree’s net assets
entitled in the consolidated financial statements of the final controller after the consolidation. The difference between the initial
investment cost of the long-term equity investment on the combination date and the carrying value of the investment before the
combination plus the carrying value of the newly-paid consideration for the acquisition of the shares on the consolidation date shall
be adjusted to capital reserve; if the capital reserve is insufficient for the adjustment retained earnings should be adjusted accordingly.
2) For those formed from the business combination under different control the initial investment cost is the fair value of the
combination consideration paid on the acquisition date.When a long-term equity investment is formed from the business combination under different control through the Company’s
multiple transactions step by step the accounting treatment shall be carried out based on whether the financial statements are
individual or consolidated:
* In individual financial statements the initial investment cost accounted in cost method is the sum of the carrying value of the
equity investment originally held and the cost of new investment.* In consolidate financial statements judge whether the transactions constitute the “package deal”. If they do the accounting
treatment shall be carried out on the basis of assuming all transactions as one transaction with the acquisition of control. If they do
128ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
not for the acquiree’s equity held before the acquisition date re-measurement shall be carried out according to the fair value of the
equity on the acquisition date and the difference between the fair value and the carrying value shall be recorded into current
investment income; if the acquiree’s equity held before the acquisition date involves other comprehensive income accounted in
equity method other comprehensive income related to it shall be transferred into the income for the period in which the acquisition
date falls with the exception of the other comprehensive incomes occurred because of the changes of net liabilities or net assets of
the defined benefit pension plans be re-measured for setting by the investees.* For those formed other than from business combination: If they are acquired in cash payment the initial investment cost is the
purchase price actually paid; if they are acquired in the issue of equity securities the initial investment cost is the fair value of the
issued equity securities; if they are acquired in debt restructuring the initial investment cost shall be recognized according to the
Accounting Standards for Enterprises No. 12 - Debt Restructuring; if they are acquired in the exchange of non-monetary assets the
initial investment shall be recognized according to the Accounting Standards for Enterprises No. 7 - Exchange of Non-Monetary
Assets.
(3) Method of subsequent measurement and recognition of profits and losses
Long-term equity investment with control over investees shall be accounted in cost method; long-term equity investment on
associated enterprises and joint ventures shall be accounted in equity method.
(4) Method of treating the disposal of the investment in a subsidiary stem by step through multiple transactions until the loss
of the controlling right
1) Individual financial statements
For the disposed equity the difference between its fair value and the actually obtained price shall be recorded into current profits or
losses. For the residual equity the part that still has significant effects on investees or with common control jointly with other parties
shall be accounted in equity method; the part that has no more control common control or significant effects on investees shall be
accounted in accordance with the relevant regulation of the Accounting Standards for Enterprises No. 22 - Recognition and
Measurement of Financial Instruments.
2) Consolidated financial statements
* For the disposal of the investment in subsidiaries step by step until the loss of the controlling right through multiple transactions
which do not constitute the “package deal”
Before the loss of the controlling right for the balance between the disposal remuneration and the shares of net assets in the
subsidiaries that have been calculated since the acquisition date or combination date corresponding to the disposal of long-term
equity investment capital reserve (capital premium) shall be adjusted and if the capital premium is not sufficient for the write-down
the retained earnings shall be written down.At the loss of the controlling right over the original subsidiaries the residual equity shall be re-measured at its fair value on the date
of losing the controlling right. The difference between the consideration obtained in the equity disposal plus the fair value of the
remaining equities less the Company’s share of net assets enjoyed of the former subsidiary that has been calculated since the
acquisition date or combination date according to the former shareholding ratio shall be recorded into the investment gains for the
period when the control ceases; meanwhile goodwill shall be written down. Other comprehensive income related to former
subsidiary's equity investment shall be transferred into current investment income when the control ceases.* For the disposal of the investment in subsidiaries step by step until the loss of the controlling right through multiple transactions
which constitute the “package deal”
The accounting treatment shall be carried out on the basis of considering each transaction as a transaction of disposing the subsidiary
and losing control. However before losing control the difference between each disposal price before losing the control and the
corresponding net assets share enjoyed of subsidiary when disposing long-term equity investment shall be recognized as other
comprehensive income in the consolidated financial statements and when the control ceases transferred into current profits or losses
of the period of losing control.
(5) Impairment test method and impairment provision method
129ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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.
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. No fixed asset may be recognized unless it simultaneously meets the conditions as follows: (1) The economic benefits are
likely to flow into the enterprise; (2) The cost of the fixed asset can be measured reliably.
(2) Depreciation Method
Category Depreciation method Useful life (year) Expected net salvagevalue Annual deprecation
Houses and buildings Straight-linedepreciation 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 0 20
(3) Recognition Basis Pricing and Depreciation Method of Fixed Assets by Finance Lease
Not applicable.
25. Construction in Progress
1. No construction in progress may be recognized unless it simultaneously meets the conditions as follows: (1) The economic
benefits are likely to flow into the enterprise; (2) The cost of the fixed asset can be measured reliably. Construction in progress shall
be measured according to the occurred actual costs before the assets available for the intended use.
2. When the construction in progress is available for the intended use it shall be transferred to fixed assets according to the actual
cost of the project. For construction in progress available for the intended use but not dealing with final accounts of completed
project it shall be transferred to fixed assets according to the estimated value first and then adjust original temporarily estimated
value based on the actual costs after the final accounts of completed project but not adjust the depreciation that was already
130ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
calculated.
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
borrowing.
27. Biological Assets
Not applicable.
28. Oil and Gas Assets
Not applicable.
29. Right-of-use Assets
On the start date of the lease term the Group deems the right-of-use assets and lease obligations except for the simplified short-term
lease and low-value leases.The Group initially measures right-of-use assets at cost. The cost includes:
1. The initial measurement amount of the lease obligation.
2. If a lease incentive exists for lease payments made on or before the commencement date of the lease term the amount related to
the lease incentive already taken is deducted.
3. Initial direct costs incurred.
4. Costs expected to be incurred by the Group for dismantling and removing the leased asset(s) restoring the premises where the
leased asset(s) is/are located or restoring the leased asset(s) to the status agreed in the leasing clauses. If the aforementioned costs are
incurred for inventory production relevant provisions of Accounting Standard for Business Enterprises No.1 - Inventory is applicable.
131ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
The Group recognizes and measures the costs described in Item 4 above in accordance with relevant provisions of the Accounting
Standards for Business Enterprises No. 13 - Contingencies. The initial direct costs incurred refer to the incremental costs incurred to
achieve the lease. Incremental costs are costs that would not have been incurred had the business not acquired the lease.The Group depreciates the right-of-use assets in accordance with relevant depreciation provisions of the Accounting Standards for
Business Enterprises No. 4 - Fixed Assets. If it is reasonably certain that the ownership of the leasehold property will be obtained at
the end of the lease term the Group will depreciate the leasehold property over its 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 Group will depreciate the leased
asset(s) over the lease term or the remaining service life whichever is shorter.The Group determines the impairment of the right-of-use assets and conducts accounting treatment of the impairment losses already
identified in accordance with relevant provisions of the Accounting Standards for Business Enterprises No. 8 - Asset Impairment.
30. Intangible Assets
(1) Pricing Method Useful Life and Impairment Test
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) Accounting Policies of Internal R&D Expenses
Not applicable.
31. Impairment of Long-term Assets
For long-term assets such as long-term equity investment investment property measured by cost model fixed assets construction in
progress and intangible assets with limited service life the Company shall estimate the recoverable amount if there are signs of
impairment on balance sheet date. For intangible assets with uncertain goodwill or service life formed by enterprise combination
whether or not there is sign of impairment impairment test shall be conducted every year. Goodwill combination and its related
assets group or combination of assets group shall be conducted the impairment test.If the recoverable amount of the above-mentioned long-term assets is lower than its carrying value it shall make the preparation for
assets impairment based on its balance and be recorded into current profits and losses.
32. Long-term Prepaid Expenses
Long-term deferred expenses refer to general expenses with the amortized period over one year (one year excluded) that have
occurred. 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.
132ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
33. 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.
34. 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
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.
133ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
35. Lease Liabilities
On the start date of the lease term the Group deems the right-of-use assets and lease obligations except for the simplified short-term
lease and low-value leases.The Group initially measures the lease obligation at the present value of the lease payments outstanding at the commencement date of
the lease term.The term "lease payments" refers to the payments made by the Group to the lessor in terms of the use of the leased asset(s) within the
lease term including:
(1) fixed lease payments and substantial fixed lease payments (if a lease incentive exists deduct the amount related to the lease
incentive);
(2) the variable lease payments that depend on indexation or ratio which are determined according to the indexation or ratio on the
commencement date of the lease term in the initial measurement;
(3) the exercise price of the purchase option when applicable if the Group is reasonably certain that the option will be exercised;
(4) payments required to be made for exercising the option to terminate the lease if the lease term reflects that the Group will exercise
such an option;
(5) estimated amount payable based on the residual value of the guarantee provided by the Group.
When calculating the present value of lease payments the Group uses the interest rate implicit in lease as the rate of discount. If the
interest rate implicit in lease cannot be determined the Group’s incremental lending rate is used as the rate of discount.
36. 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.
37. Share-based Payment
Not applicable.
38. Other Financial Instruments such as Preference Shares and Perpetual Bonds
Not applicable.
39. Revenue
The Accounting Policy Adopted for Recognition and Measurement of Revenue
1. Recognition of revenue
The Company gains revenue mainly from property sales property management sales of software and property leasing (refer to 42.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
obligation fulfilled in a specific time period:
134ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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.
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; for those who did not
choose the bank mortgage to make their payment the full house payment must be required) issued the notice of repossession (if the
owner fails to go through the formalities in time within the specified time limit the building shall be deemed as repossessed).
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
revenue from providing services employing the percentage-of-completion method and confirm the completion of labor service
135ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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.
5) Other Business Income
136ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
According to the stipulations of relevant contracts and agreements when the economic benefits related to the transaction can flow
into the enterprise and the costs related to the income can be reliably measured the realization of other business income shall be
confirmed.
3. 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 accounting policies for the recognition of revenue caused by different business models for the same type of business
Not applicable.
40. 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
137ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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 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.
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.
41. 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.
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.
42. Lease
(1) Accounting Treatment of Operating Lease
1. Lessee
The Group shall when as the lessee on the commencement date of the lease term recognize the right-of-use assets and lease
obligations for the lease unless it is a simplified short-term lease or low-value asset lease.After the commencement date of the lease term the Group uses the cost model for subsequent measurement of right-of-use assets.The Group depreciates the right-of-use assets in accordance with relevant depreciation provisions of the Accounting Standards for
138ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Business Enterprises No. 4 - Fixed Assets. If the lessee can reasonably ascertain that the ownership of the leasehold property will be
obtained at the end of the lease term it shall depreciate the leasehold property over its 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 it shall depreciate the leased asset(s)
over the lease term or the remaining service life whichever is shorter. The Group will determine the impairment of the right-of-use
assets and conduct accounting treatment of the impairment losses already identified in accordance with relevant provisions of the
Accounting Standards for Business Enterprises No. 8 - Asset Impairment.The Group calculates the interest expenses of the lease obligations during each period of the lease term at a fixed periodic interest
rate and includes them in profit or loss for the current period. Where the Accounting Standards for Business Enterprises No. 17 -
Borrowing Costs and other standards provide that such interest expenses shall be included in the cost of related assets such
provisions shall be observed.The Group does not recognize the right-of-use assets and lease liabilities for short-term leases and low-value asset leases. In each
period within the lease term the relevant lease payments for short-term leases and low-value asset leases are included in cost of the
related assets or profit or loss for the current period on a straight-line basis.
2. Lessor
In the case of the Group is the lessor it recognizes the receipts of the operating lease incurred during each period of the lease term as
rentals by the straight-line method. The Group capitalizes the initial direct costs related to the operating lease upon incurrence thereof
and within the lease term apportions and includes such costs in the current profit or loss on the basis same as the recognition of
rentals.For the fixed assets in the assets under operating lease the Group shall adopt the depreciation policy of similar assets to calculate and
distill depreciation. For other assets under operating lease the Group shall amortize them in a systematic and reasonable manner in
accordance with the accounting standards for enterprises applicable to the assets. The Group will determine the impairment of assets
under operating lease and conduct accounting treatment in accordance with relevant provisions of the Accounting Standards for
Business Enterprises No. 8 - Asset Impairment.
(2) Accounting Treatments of Financial Lease
The Group shall when as the lessor on the commencement date of the lease term recognize the finance lease receivables for the
finance lease and derecognize the leased asset(s) of the finance lease. The Group shall also calculate and confirm the interest income
at a fixed periodic interest rate in each period in the lease term.
43. Other Important Accounting Policies and Accounting Estimations
1. 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.
3) The component is a subsidiary which is obtained for resale specially.
139ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
44. Changes in Main Accounting Policies and Estimates
(1) Change of Accounting Policies
□Applicable□ Not applicable
(2) Changes in Accounting Estimates
□Applicable□ Not applicable
45. Other
In the Note of the financial statements the data of the period-beginning refers to the financial statement data on 1 January 2022;
the data of the period-end refers to the financial statement data on 31 December 2022; the Reporting Period refers to the 2022; the
same period of last year refers to the 2021. The same to the Company as the parent.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 Guomao Catering Co. Ltd. 20%
Shenzhen Property Engineering and Construction Supervision
Co. Ltd. 20%
Shenzhen Julian Human Resources Development Co.Ltd. 20%
Shenzhen Huazhengpeng Property Management Development
Co. Ltd. 20%
140ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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 Tianque Elevator Technology Co. Ltd. 20%
Shenzhen Guoguan Electromechanical Device Co. Ltd. 20%
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 International Trade Industry Space Service 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%
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 2022.
141ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
As per the "Announcement on the Implementation of Tax Preferential Policies for Small and Micro Enterprises and Individual
Industrial and Commercial Taxpayers" (Announcement No. 12 of 2021 of the Ministry of Finance and the State Taxation
Administration) and the "Announcement of the State Taxation Administration on Matters Related to Implementing the Preferential
Income Tax Policy to Support the Development of Small and Micro Enterprises and Individual Industrial and Commercial
Taxpayers" (Announcement No. 8 of 2021 of the State Taxation Administration) for small and micro-profit enterprises if their
annual taxable income does not exceed RMB1 million from 1 January 2021 to 31 December 2022 the taxable income will be
reduced by 12.5% and the enterprise income tax rate will be 20%. Furthermore as per the "Announcement 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%. This policy applies to 30 subsidiaries including Shenzhen
Guomao Catering Co. Ltd. (Guomao Catering) and Shenzhen Property Engineering and Construction Supervision 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 43833.00 122823.16
Bank deposits 1512202363.19 1906868484.28
Other monetary funds 5282697.64 373830134.67
Total 1517528893.83 2280821442.11
Of which: total amount deposited
overseas 66436595.66 64351098.39
Total amount of restriction in use by
guaranteed pledged or frozen 7835036.35 373079206.86
Other notes:
Among other monetary assets the funds with limited use rights mainly include the margin and interest of RMB1780754.70; the
funds with limited use rights in bank deposits mainly include the bank frozen funds of RMB42781.65 and the interest on time
deposits of RMB2860000.00 plus the balance of the bank margin account of RMB3151500.00. The above amount is not
regarded as cash and cash equivalents due to restrictions on use.
142ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
2. Trading Financial Assets
Unit: RMB
Item Ending balance Beginning balance
Of which:
Of which:
Other notes:
3. Derivative Financial Assets
Unit: RMB
Item Ending balance Beginning balance
Other notes:
4. Notes Receivable
(1) Notes Receivable Listed by Category
Unit: RMB
Item Ending balance Beginning balance
Bank acceptance bill 200000.00
Total 200000.00
Unit: RMB
Ending balance Beginning balance
Category Carrying amount Bad debt provision Carrying amount Bad debt provisionCarrying Carrying
Amount Proportion Amount Withdrawal valueproportion Amount Proportion Amount
Withdrawal value
proportion
Notes
receivable
for which
bad debt 200000.00 100.00% 200000.00
provision
separately
accrued
Of which:
Of which:
Total 200000.00 100.00% 200000.00
Please refer to the relevant information of disclosure of bad debt provision of other accounts receivable if adopting the general
mode of expected credit loss to withdraw bad debt provision of notes receivable.□Applicable□Not applicable
(2) Bad Debt Provision Withdrawal Reversed or Recovered in the Current Period
Withdrawal of bad debt provision:
Unit: RMB
Changes in the current period
Category Beginningbalance Ending balanceWithdrawal Reversed orrecovered Verification Others
Of which significant amount of recovered or transferred-back bad debt provision for the current period:
□Applicable□Not applicable
143ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
(3) Notes Receivable Pledged by the Company at the Period-end
Unit: RMB
Item Ending pledged amount
(4) 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
(5) Notes Transferred to Accounts Receivable because Drawer of the Notes Failed to Execute the Contract
or Agreement
Unit: RMB
Item Amount of the notes transferred to accounts receivable at theperiod-end
Other notes:
(6) Notes Receivable with Actual Verification for the Current Period
Unit: RMB
Item Written-off amount
Of which verification of significant notes receivable:
Unit: RMB
Written-off Reason for Verification Whether occurredName of the entity Nature amount verification procedures because of related-performed party transactions
Notes of the verification of notes receivable
5. Accounts Receivable
(1) Listed by Category
Unit: RMB
Ending balance Beginning balance
Category Carrying amount Bad debt provision Carrying amount Bad debt provisionCarrying Carrying
Amount Proportion Amount Withdrawal valueproportion Amount Proportion Amount
Withdrawal value
proportion
Accounts
receivable
withdrawal
of bad debt 111808371 109689294 2119076.6 109683529 108118031.14 20.01% .54 98.10% 0 .63 25.93% .66 98.57%
1565497.9
provision 7
separately
accrued
Of which:
Accounts
receivable
withdrawal 447078385 29263546. 417814838 313253344 20833702. 292419641
of bad debt .18 79.99% 48 6.55% .70 .07 74.07% 11 6.65% .96
provision of
by group
Of which:
Total 558886756.32 100.00%
13895284124.86%419933915422936873100.00%128951733.02.30.70.7730.49%
293985139.93
144ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Bad debt provision separately accrued: RMB109689294.54
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawalproportion Reason for withdraw
Shenzhen Jiyong Properties
& Resources Development 93811328.05 93811328.05 100.00% Involved in lawsuit and
Company unrecoverable
Shenzhen Tewei Industry 2836561.00 2836561.00 100.00% Expected to beCo. Ltd. unrecoverable
Lunan Industry Corporation 2818284.84 2818284.84 100.00% Expected to beunrecoverable
Shenzhen Hampoo Science Expected to be
& Technology Co. Ltd. 1436020.29 1433070.29 99.79% unrecoverable
Those with insignificant
single amount for which
bad debt provision 10906176.96 8790050.36 80.60%
Uncollectible for a long
period
separately accrued
Total 111808371.14 109689294.54
Bad debt provision accrued by item:
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion Reason for withdraw
Bad debt provision accrued by item:
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion Reason for withdraw
Bad debt provision accrued by item:
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion Reason for withdraw
Bad debt provision accrued by item:
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion Reason for withdraw
Withdrawal of bad debt provision by group: RMB29263546.48
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Portfolio of credit risk
features 211445244.12 21569742.26 10.20%
Portfolio of transactions with
other related parties 235633141.06 7693804.22 3.27%
Total 447078385.18 29263546.48
Notes to the determination basis for the group:
145ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Bad debt provision accrued by portfolio:
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Notes to the determination basis for the group:
Please refer to the relevant information of disclosure of bad debt provision of other accounts receivable if adopting the general
mode of expected credit loss to withdraw bad debt provision of accounts receivable.□Applicable□Not applicable
Disclosure by aging
Unit: RMB
Aging Carrying amount
Within 1 year (including 1 year) 394914334.75
1 to 2 years 31016372.76
2 to 3 years 12333910.99
Over 3 years 120622137.82
3 to 4 years 6141296.85
4 to 5 years 4392591.92
Over 5 years 110088249.05
Total 558886756.32
(2) Bad Debt Provision Withdrawal Reversed or Recovered in the Current Period
Withdrawal of bad debt provision:
Unit: RMB
Changes in the current period
Category Beginningbalance Ending balance
Withdrawal Reversed orrecovered Verification Others
Bad debt
provision 108118031.66 1571262.88 109689294.54
accrued by item
Withdrawal of
bad debt
provision by 20833702.11 8440902.17 11057.80 29263546.48
group
Total 128951733.77 10012165.05 11057.80 138952841.02
Of which significant amount of recovered or transferred-back bad debt provision for the current period:
Unit: RMB
Name of the entity Amount reversed or recovered Way of recovery
(3) Accounts Receivable Written-off in Current Period
Unit: RMB
Item Written-off amount
Of which the verification of significant accounts receivable:
146ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Unit: RMB
Written-off Reason for Verification Whether occurredName of the entity Nature amount verification procedures because of related-performed party transactions
Notes to verification of accounts receivable:
(4) Top 5 of the Ending Balance of the Accounts Receivable Collected according to Arrears Party
Unit: RMB
Proportion to total
Name of the entity Ending balance ending balance of Ending balance of bad
accounts receivable debt provision
Shenzhen Bay Technology Development Co. Ltd. 131203332.93 23.48% 3936099.99
Shenzhen Jiyong Properties & Resources Development
93811328.0516.79%93811328.05
Company
Shenzhen Bay Area International Hotel Co. Ltd. 51312666.65 9.18% 1539380.00
Hebei Shenbao Investment Development Co. Ltd. 15856697.13 2.84% 475700.91
ShenZhen Special Economic Zone Real Estate &
10072563.131.80%674112.86
Properties (Group) Co. Ltd.Total 302256587.89 54.09%
(5) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement
of Accounts Receivable
Other notes:
(6) Accounts Receivable Derecognized due to the Transfer of Financial Assets
6. Accounts Receivable Financing
Unit: RMB
Item Ending balance Beginning balance
The changes of accounts receivable financing in the Current Period and the changes in fair value
□Applicable□Not applicable
Please refer to the relevant information of disclosure of bad debt provision of other accounts receivable if adopting the general
mode of expected credit loss to withdraw bad debt provision of accounts receivable financing.□Applicable□Not applicable
Other notes:
7. Prepayment
(1) Prepayment Listed by Aging Analysis
Unit: RMB
Aging Ending balance Beginning balance
147ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Amount Proportion Amount Proportion
Within 1 year 98477532.46 98.14% 24618321.77 34.68%
1 to 2 years 1652279.14 1.65% 25907661.19 36.50%
2 to 3 years 1438.19 0.00% 499638.55 0.70%
Over 3 years 210556.77 0.21% 19953402.48 28.11%
Total 100341806.56 70979023.99
Notes of the reasons of the prepayment aging over 1 year with significant amount but failed settled in time:
(2) Top 5 Prepayment in Ending Balance Collected according to the Prepayment Target
Name of the entity Carrying amount As % of the total ending balanceof the prepayments (%)
Natural Resources and Planning Bureau of
Yangzhou City 53587710.00 53.41
The Yangzhou Municipal Bureau of Finance 36000000.00 35.88
Beijing Jingdong Century Information Technology
Co. Ltd. 1887916.50 1.88
Chongqing Yudi Assets Management Co. Ltd. 1869630.00 1.86
China State Construction & Engineering 4th
Bureau 5th Corp Limited 818177.48 0.82
Total 94163433.98 93.84
Other notes:
8. Other Receivables
Unit: RMB
Item Ending balance Beginning balance
Other receivables 639903523.33 926361533.14
Total 639903523.33 926361533.14
(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:
148ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
3) Withdrawal of Bad Debt Provision
□Applicable□Not applicable
(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) Withdrawal of Bad Debt Provision
□Applicable□Not applicable
Other notes:
(3) Other Receivables
1) Category of Other Receivables by Account Nature
Unit: RMB
Nature Ending carrying amount Beginning carrying amount
Security deposit 14333480.59 15080675.80
Margin 33052554.40 44541666.67
Reserve fund 315131.82 414042.10
Payment on behalf 7861406.33 9613270.01
Intercourse funds 645712452.33 823874343.35
Centralized management receivables 88988669.52
Others 26868828.99 24696812.94
Total 728143854.46 1007209480.39
2) Withdrawal of Bad Debt Provision
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
202251328567.9629519379.2980847947.25
Balance of 1 January
2022 in the current
period
Withdrawal of the
current period 7117248.24 275135.64 7392383.88
Balance as at 31
December 2022 58445816.20 29794514.93 88240331.13
Changes of carrying amount with significant amount changed of loss provision in the current period
149ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
□Applicable□ Not applicable
Disclosure by aging
Unit: RMB
Aging Carrying amount
Within 1 year (including 1 year) 45898989.35
1 to 2 years 582305977.29
2 to 3 years 32848373.42
Over 3 years 67090514.40
3 to 4 years 1460635.19
4 to 5 years 1563169.64
Over 5 years 64066709.57
Total 728143854.46
3) Bad Debt Provision Withdrawn Reversed or Recovered in the Current Period
Withdrawal of bad debt provision:
Unit: RMB
Changes in the current period
Category Beginningbalance Ending balance
Withdrawal Reversed orrecovered Verification Others
Bad debt provision
accrued by item 46215164.01 876420.17 47091584.18
Withdrawal of bad
debt provision by 34632783.24 6515963.71 41148746.95
group
Total 80847947.25 7392383.88 88240331.13
Of which the bad debt provision recovered or transferred-back with significant amount during the current period:
Unit: RMB
Name of the entity Amount reversed or recovered Way of recovery
4) 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
Verification Whether occurred
Name of the entity Nature Written-off Reason foramount verification procedures because of related-performed party transactions
Notes to the verification of other receivables:
5) 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 ofending balance of bad debt provision
other
150ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
receivables %
Shenzhen Xinhai
Holding Co. Ltd.and the related
party Shenzhen
Xinhai Rongyao Intercourse funds 576568974.73
Within 1 year one
to five years 79.17% 17297069.25
Real Estate
Development Co.Ltd.Shenzhen
Bangling Stock
Cooperative Intercourse funds 30000000.00 Two to three years 4.12% 9000000.00
Company
Yangzhou
Hanjiang Taxation Intercourse funds 13136828.79 Within 1 year 1.80% 394104.86
Bureau
Shenzhen Qianhai
Advanced
Information Intercourse funds 10720575.27
Within 1 year one
to two years 1.47% 321617.26
Service Co. Ltd.Total 630426378.79 86.56% 27012791.37
6) Accounts Receivable Involving Government Subsidies
Unit: RMB
Name of the entity Project of government Estimated recoveringsubsidies Ending balance Ending aging time amount and basis
7) Derecognition of Other Receivables due to the Transfer of Financial Assets
8) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement
of Other Receivables
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
Item reserves of reserves ofCarrying inventories or
amount Carrying value
Carrying inventories or Carrying value
impairment amount impairment
provision for provision for
contract contract
151ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
performance performance
costs costs
R&D expenses 10778950699 6648404.13 10772302295 8720133125. 8713484721..23 .10 46 6648404.13 33
Developing
properties 199674693.59 199674693.59 409687436.41 409687436.41
Contract
performance 1965933.85 1965933.85
costs
Raw materials 1891354.81 1040612.30 850742.51 2082008.73 752182.07 1329826.66
Inventory
goods 2536973.19 2094300.39 442672.80 2600344.84 2094300.39 506044.45
Low-value
consumables 97885.52 97885.52 126033.42 126033.42
Total 10985117540. 9783316.82 10975334223 9134628948.19 .37 86 9494886.59
9125134062.
27
Disclose main items of “R&D expenses” and interest capitalization in the following format:
Unit: RMB
Transferred Of which:
to Other Increase Accumulat amount of
Project Time for Estimated Estimated Beginning developing decreased
(R&D ed amount capitalized
name commence date of total balance properties amount for
expenses) Ending
for the balance of interest interests
Capital
ment completion investment for the the current capitalizati for the resources
current period current
period period
on current
period
Guanlan 7 January 10Bangling 2021 September
694150038053128808899546862022383035012343282
project 2029 000.00 202.35 0.18 152.53 9.98 6.55
Bank loans
SZPRD-
Banshan 15 March 12 January 24700000 19619752 21612260 19925083
Yujing 2019 2022 5.93 9.92 .99 Others0.00
Phase II
SZPRD-
Fuchang
Garden 27December 30 June 91133000 67736807 69919499 74728757Phase II 2018 2023
Others
0.002.10.841.94
(Fuhui
Huayuan)
Humen 3211
coastal 22 March 30 April .739 2133826 22774176 2361567
Harbor 2022 2024 Others300.0 142.11 8.82 910.93
project 0
Guangmin
g Yutang 7 March 21 October 2588185 1621000 17127878 1792278
Shangfu 2022 2024 600.00 000.00 2.42 782.42
Others
Project
Yupinluans
han Garden
(A117-12
land
commercia 23203074 4402759. 23643350 Others
l and 6.62 02 5.64
residential
constructio
n project)
Haikou
Hongqi 6648404. 6648404. Others
Town Land 13 13
Shenhui 37002030 254017.27 37256048Garden .89 .16 Others
Fuyuantai 9127089. 3627248. 12754337
Project 11 54 .65 Others
152ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Project of
Slender
West Lake
ecological 6 March 31 August 3774790 86396630 86396630 Others
health 2023 2026 000.00 4.45 4.45
valley in
Yangzhou
Others 1620912. 32934769 3455568122 .16 .38 Others
Total -- -- 14328176 8720133 21612260 0.00 2274940 10778950 23830350 12343282
400.00125.469.92183.69699.239.986.55
--
Disclose main items of “Developing properties” in the following format:
Unit: RMB
Accumulated Of which:
Project name Time of Beginning Increase for the
Decrease for amount of amount of
completion balance current period the current Ending balance interest capitalizedperiod capitalization interests for thecurrent period
SZPRD-
Langqiao 1 December2012 3447316.75 3447316.75 83077702.96International
SZPRD-Hupan
Yujing Phase I 1 June 2015 57356637.66 541547.38 56815090.28
SZPRD-
Banshan Yujing 12 January 221291899.45 217684502.39 3607397.06 10446911.43
Phase II 2022
SZPRD-
Songhu 1 July 2017 24505635.91 305308.44 24200327.47 27205315.95
Langyuan
SZPRD-Hupan 1 November
Yujing Phase II 2017 45306202.60 14788389.37 30517813.23 30539392.65
SZPRD-
Golden 1 December2019 270245459.13 1569890.15 199554784.84 72260564.44Collar’s Resort
International
Trade Center 1 December1995 4839083.10 4839083.10 26385636.29Plaza
Huangyuyuan
AArea 1 June 2001 790140.58 790140.58
Podium
Building of 1 November
Fuchang 1999 645532.65 645532.65
Building
Other items 2551428.03 2551428.03
Total -- 409687436.41 222861789.60 432874532.42 199674693.59 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 theperiod current 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
153ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Increased amount of the Decreased amount for the
current period current period
Item Beginning Endingbalance Transferred- balance Notes
Withdrawal Others back or Others
charged-off
R&D
expenses 6648404.13 6648404.13
Raw
materials 752182.07 528430.23 240000.00 1040612.30
Inventory
goods 2094300.39 2094300.39
Total 9494886.59 528430.23 240000.00 9783316.82
Classification by nature:
Unit: RMB
Increased amount of the Decreased amount for the
current period current period
Project name Beginning Endingbalance Transferred- balance Notes
Withdrawal Others back or Others
charged-off
Haikou Hongqi
Town Land 6648404.13 6648404.13
Total 6648404.13 6648404.13
(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 1115856.40 774175.34 341681.06
Guanlan Bangling
Project 114870683.43 123432826.55 238303509.98
SZPRD-Langqiao
International 2971986.54 2971986.54
SZPRD-Hupan Yujing
Phase I 1292469.40 42953.98 1249515.42
Total 120250995.77 123432826.55 817129.32 242866693.00
(4) Inventory Restrictions
Disclosing restricted inventory by project:
Unit: RMB
Project name Beginning balance Ending balance Reason for restriction
10. Contract Assets
Unit: RMB
Ending balance Beginning balance
Item Carrying Impairment Carrying Impairment
amount provision Carrying value amount provision Carrying value
Municipal
engineering 1094632.90 1094632.90
retention money
154ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Total 1094632.90 1094632.90
Amount of significant changes in carrying value of contract assets in the Current Period and reasons thereof:
Unit: RMB
Item Change in amount Reason(s)
If the bad debt provision for contract assets in accordance with the general model of expected credit losses the information related
to the bad debt provision shall be disclosed by reference to the disclosure method of other receivables:
□Applicable□Not applicable
Withdrawal of impairment provision for contract assets in the Current Period:
Unit: RMB
Item Withdrawal of the
Amount transferred-
back for the current Write-off/verified forcurrent period period the current period
Reason
Other notes:
11. Held-for-sale Assets
Unit: RMB
Ending
Item carrying Impairment
Ending Estimated
carrying Fair value disposal Estimated
amount provision amount expense disposal time
Other notes:
12. Current Portion of Non-current Assets
Unit: RMB
Item Ending balance Beginning balance
Significant investments in debt obligations /other investments in debt obligations
Unit: RMB
Ending balance Beginning balance
Item
Par value Coupon Actual Maturity Par value Coupon Actual Maturityrate interest rate date rate interest rate date
Other notes:
13. Other Current Assets
Unit: RMB
Item Ending balance Beginning balance
Prepaid VAT 16846758.27 13510039.34
Deducted input tax 28950002.85 11848968.49
Prepaid income tax 1436395.15 85107.14
Prepaid land VAT 16438505.72 30741415.30
Prepaid urban construction tax 1156118.20 1423246.18
Prepaid education surcharge 825798.74 1029901.67
155ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Immediate rebate of receivable software
sales VAT 1687.34 358306.69
Total 65655266.27 58996984.81
Other notes:
14. Investments in Debt Obligations
Unit: RMB
Ending balance Beginning balance
Item Carrying Impairment Carrying Impairment
amount provision Carrying value amount provision Carrying value
Significant investments in debt obligations
Unit: RMB
Ending balance Beginning balance
Item
Par value Coupon Actual Maturity Coupon Actual Maturityrate interest rate date Par value rate interest rate date
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
2022 in the current
period
Changes of carrying amount with significant amount changed of loss provision in the current period
□Applicable□Not applicable
Other notes:
15. Other Investments in Debt Obligations
Unit: RMB
Accumulat
ed
Change in Accumulat provision
Item Beginning Accrued
fair value Ending ed changes for losses
balance interest in thereporting balance
Cost in fair recognized Notes
value in otherperiod comprehen
sive
income
Significant other investments in debt obligations
Unit: RMB
Ending balance Beginning balance
Item
Par value Coupon Actual Maturity Coupon Actual Maturityrate interest rate date Par value rate interest rate date
Status of accrued depreciation reserves
Unit: RMB
156ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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
2022 in the current
period
Changes of carrying amount with significant amount changed of loss provision in the current period
□Applicable□Not applicable
Other notes:
16. Long-term Receivables
(1) List of Long-term Receivables
Unit: RMB
Ending balance Beginning balance Interval of
Item Carrying Bad debt Carrying Bad debt Carrying discount
amount provision Carrying value amount provision value rate
Financing
lease 22651454.07 22651454.07 23831889.11 23831889.11
accounts
Of which:
unrealized
financing 13169492.65 13169492.65 16430753.09 16430753.09
income
Total 22651454.07 22651454.07 23831889.11 23831889.11
Impairment of bad debt provision
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
2022 in the current
period
Changes of carrying amount with significant amount changed of loss provision in the current period
□Applicable□Not applicable
(2) Derecognition of Long-term Receivables due to the Transfer of Financial Assets
(3) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement
of Long-term Receivables
Other notes:
157ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
17. Long-term Equity Investment
Unit: RMB
Increase/decrease for the current period
Ending
Beginning Gains and Adjustmen Cash Withdra Ending balance
Investee balance
losses wal of balance of
(carrying Additional
Reduced t of other Changes bonus or
investme recognized comprehe of other profits impairm Others (Carrying depreciati
value) investment nt under the ent Value) onequity nsive equity announcedincome to issue provisio reservemethod n
I. Joint ventures
Shenzhen
Real Estate
Jifa 43516665. 1213920. 4473058
Warehousin 12 17 5.29
g Co. Ltd.Tian’an
International
Building
Property 6844016.2 193936.0 7037952.Managemen 5 6 31
t Company
of Shenzhen
Subtotal 50360681. 1407856. 5176853
37237.60
II. Associated enterprises
Shenzhen
Wufang
Ceramics 18983614. 1898361 1898361
Industrial 14 4.14 4.14
Co. Ltd.Shenzhen
Kangfu
Health 165000.00 165000.0 165000.0
Products 0 0
Co. Ltd.Shenzhen
Xinghao
Imitation 756670.68 756670.6 756670.6
Porcelain 8 8
Co. Ltd.Shenzhen
Social
Welfare
Company 326693.24 326693.2 326693.2
Fuda 4 4
Electronics
Factory
Shenzhen
Fulong
Industry 1684350.0 1684350. 1684350
Developmen 0 00 .00
t Co. Ltd.Haonianhua 2733570.0 2733570. 2733570
Hotel 5 05 .05
Shenzhen
Education
Fund 500000.00 500000.0 500000.0
Longhua 0 0
Investment
158ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Shenzhen
Kangle
Sports Club 540060.00 540060.0 540060.0
Huangfa 0 0
Branch
Dankeng
Village
Plants of
Fumin in 1168973.2 1168973. 1168973
Guanlan 0 20 .20
Town
Shenzhen
City
Shenzhen
Bull 500000.0 500000.0
Entertainme 500000.00 0 0
nt Co. Ltd.Shenzhen
Lianhua
Caitian 1475465.9 1475465. 1475465
Property 1 91 .91
Managemen
t Co. Ltd.Shenzhen
Yangyuan 1030000.0 1030000. 1030000
Industrial 0 00 .00
Co. Ltd.Jiakaifeng
Co. Ltd.Bao’an 600000.00
600000.0600000.0
00
Company
Guiyuan
Garage 350000.00
350000.0350000.0
00
Shenzhen
Wuweiben
Roof 500000.00 500000.0 500000.0
Greening 0 0
Co. Ltd.ShenzhenYu
anping
Plastic Steel 240000.00 240000.0 240000.0
Doors Co. 0 0
Ltd.ShenzhenYo
ufang
Printing Co. 100000.00
100000.0100000.0
00
Ltd.Shenzhen
Lusheng
Industrial 100000.00 100000.0 100000.0
Developmen 0 0
t Co. Ltd.CSCEC
Intelligent
Parking 2738029 632605.5 2801289
Technology 4.13 8 9.71
Co. Ltd.Subtotal 31754397. 2738029 632605.5 5976729 317543922 4.13 8 6.93 7.22
Total 82115078. 2738029 2040461. 1115358 317543959 4.13 81 34.53 7.22
159ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Other notes:
18. Other Equity Instrument Investment
Unit: RMB
Item Ending balance Beginning balance
Gintian Industry (Group) Co. Ltd. 887838.64 1002551.95
Total 887838.64 1002551.95
Non-trading equity instrument investment in the Current Period disclosed by items
Unit: RMB
Amount of Reason forassigning to Reason forother
Dividend comprehensive measure in fair
other
comprehensive
Project name income Accumulative Accumulative income value of which income
recognized gains losses transferred to changesincluded other transferred toretained comprehensive retainedearnings income earnings
Gintian Not for
Industry business
(Group) Co. 2702517.67 transaction
Ltd. purposes
Other notes:
19. Other Non-current Financial Assets
Unit: RMB
Item Ending balance Beginning balance
Other notes:
20. Investment Property
(1) Investment Property Adopting the Cost Measurement Mode
□Applicable □Not applicable
Unit: RMB
Item Houses and buildings Land use right Construction inprogress Total
I. Original carrying
value
1. Beginning balance 817541454.35 30262437.05 37813651.91 885617543.31
2. Increased amount for
the current period 43115972.25 19509471.00 -620935.08 62004508.17
(1) Outsourcing 19509471.00 19509471.00
(2)Transfer from
inventory/fixed
assets/construction in 41393882.14 41393882.14
progress
(3) Business
combination increase
(4) Others 1722090.11 -620935.08 1101155.03
160ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
3. Decreased amount
for the current period -1045082.77 35276005.85 34230923.08
(1) Disposal 35276005.85 35276005.85
(2) Other transfer
(3) Exchange
adjustment -1045082.77 -1045082.77
4. Ending balance 861702509.37 14495902.20 37192716.83 913391128.40
II. Accumulative
depreciation and
accumulative
amortization
1. Beginning balance 395715194.03 15870449.43 14827290.50 426412933.96
2. Increased amount for
the current period 75563017.13 11902257.30 7169473.04 94634747.47
(1) Withdrawal or
amortization 42349989.34 11902257.30 7169473.04 61421719.68
(2) Others 33213027.79 33213027.79
3. Decreased amount
for the current period -992828.63 14412120.84 13419292.21
(1) Disposal 14412120.84 14412120.84
(2) Other transfer
(3) Exchange
adjustment -992828.63 -992828.63
4. Ending balance 472271039.79 13360585.89 21996763.54 507628389.22
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 389431469.58 1135316.31 15195953.29 405762739.18
2. Beginning carrying
value 421826260.32 14391987.62 22986361.41 459204609.35
(2) Investment Property Adopting the Fair Value Measurement Mode
□Applicable□Not applicable
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.Investment properties measured in fair value by project disclosure:
Unit: RMB
161ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Lease Reason for
Project Time of income Range of fair value
name Location completion Floor area during this
Beginning Closing fair
reporting fair value value
fair value changes
changes and report
period index
Whether the Company has new investment properties in construction period measured in fair value
□Yes□No
Whether the Company has new investment properties measured in fair value
□Yes□No
(3) 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 third
507 Unit Block No. 6 Maguling 23989.01 party a property management company
now has been recovered but hasn’t
handled the warrant yet.Obtained after the success in the last
Meilin land [Note 1] instance in 2017 relevant certifications
of property are in the procedure
Total 23989.01
Note 1: As at 31 December 2022 the original carrying value of Meilin land was RMB3885469.40 the accumulated accrued
depreciation was RMB3885469.40 and the carrying value was RMB0.
21. Fixed Assets
Unit: RMB
Item Ending balance Beginning balance
Fixed assets 82745172.12 114155590.40
Total 82745172.12 114155590.40
(1) List of Fixed Assets
Unit: RMB
Item Houses and Machinery Transportation Decoration of Otherbuildings equipment vehicle the fixed assets machinery Total
I. Original
carrying value:
1. Beginning
balance 170769520.52 6457738.92 19945359.01 37558734.54 56822575.07 291553928.06
2. Increased
amount for the 925802.96 156911.34 4648113.87 5730828.17
current period
(1) Purchase 925802.96 34972.76 4648113.87 5608889.59
(2) Transfer
from
construction in 121938.58 121938.58
progress
(3) Business
combination
increase
3. Decreased 40910235.23 1409600.00 4395553.86 46715389.09
amount for the
162ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
current period
(1) Disposal or
scrap 1409600.00 4395553.86 5805153.86
(2) Exchange
adjustment -483646.91 -483646.91
(3) Others 41393882.14 41393882.14
4. Ending
balance 129859285.29 6457738.92 19461561.97 37715645.88 57075135.08 250569367.14
II.Accumulative
depreciation
1. Beginning
balance 117648374.76 2104341.60 13173259.62 11190690.65 33205953.87 177322620.50
2. Increased
amount for the 11004265.53 544615.34 1951429.64 7458565.17 7218351.90 28177227.58
current period
(1) Withdrawal 11004265.53 544615.34 1951429.64 7458565.17 7218351.90 28177227.58
3. Decreased
amount for the 32769959.84 1334118.09 3647292.29 37751370.22
current period
(1) Disposal or
scrap 1334118.09 3647292.29 4981410.38
(2) Exchange
adjustment -443067.95 -443067.95
(3) Others 33213027.79 33213027.79
4. Ending
balance 95882680.45 2648956.94 13790571.17 18649255.82 36777013.48 167748477.86
III.Depreciation
reserves
1. Beginning
balance 75717.16 75717.16
2. Increased
amount for the
current period
(1) Withdrawal
3. Decreased
amount for the
current period
(1) Disposal or
scrap
4. Ending
balance 75717.16 75717.16
IV. Carrying
value
1. Ending
carrying value 33976604.84 3808781.98 5670990.80 19066390.06 20222404.44 82745172.12
2. Beginning
carrying value 53121145.76 4353397.32 6772099.39 26368043.89 23540904.04 114155590.40
163ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
(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 2364479.98 Property rights disputes before now have won a lawsuitDigital Building with certification of the property being processed.The office building will be removed due to the project
Room 401 402 Sanxiang Business adjustment and a high-rise office building will be established
Building Office Building 652721.66 nearby the present address. The existing property shall bereplaced after the completion of the new office building.Thus the certification of the property is failed to transact.Total 3017201.64
Other notes:
(5) Proceeds from Disposal of Fixed Assets
Unit: RMB
Item Ending balance Beginning balance
Other notes:
22. Construction in Progress
Unit: RMB
Item Ending balance Beginning balance
(1) List of Construction in Progress
Unit: RMB
Ending balance Beginning balance
Item Carrying Impairment Carrying value Carrying Impairmentamount provision amount provision Carrying value
(2) Changes in Significant Construction in Progress during the Current Period
Unit: RMB
Other Proportion of Of which:Accumulated amount of Capitalization
Project name Budget Beginning
Increased
amount of the Transferred in
decreased Ending accumulated rate of
balance amount for investment in Job schedule
amount of capitalized interests for Capital
current period fixed assets the current balance constructions interest interests for the current resources
period to budget capitalization the currentperiod period
(3) List of the Withdrawal of the Depreciation Reserves for Construction in Progress
Unit: RMB
Item Amount withdrawn Reason for withdrawal
Other notes:
164ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
(4) Engineering Materials
Unit: RMB
Ending balance Beginning balance
Item Carrying Impairment Carrying Impairment
amount provision Carrying value amount provision Carrying value
Other notes:
23. Productive Living Assets
(1) Productive Living Assets Adopting Cost Measurement Mode
□Applicable□Not applicable
(2) Productive Living Assets Adopting Fair Value Measurement Mode
□Applicable□Not applicable
24. Oil and Gas Assets
□Applicable□Not applicable
25. Right-of-use Assets
Unit: RMB
Item Houses and buildings Total
I. Original carrying value
1. Beginning balance 85899256.85 85899256.85
2. Increased amount for the current
period 24328862.17 24328862.17
(1) New Leases 24328862.17 24328862.17
3. Decreased amount for the current
period 13249845.21 13249845.21
(1) Expiration of lease contract
(2) Lease termination 13249845.21 13249845.21
4. Ending balance 96978273.81 96978273.81
II. Accumulative depreciation
1. Beginning balance 14426576.12 14426576.12
2. Increased amount for the current
period 22380277.42 22380277.42
(1) Withdrawal 22380277.42 22380277.42
3. Decreased amount for the current
period 9996995.38 9996995.38
(1) Disposal
Lease termination 9996995.38 9996995.38
4. Ending balance 26809858.16 26809858.16
III. Depreciation reserves
1. Beginning balance
2. Increased amount for the current
period
(1) Withdrawal
3. Decreased amount for the current
165ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
period
(1) Disposal
4. Ending balance
IV. Carrying value
1. Ending carrying value 70168415.65 70168415.65
2. Beginning carrying value 71472680.73 71472680.73
Other notes:
26. 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 1306922.80 1306922.80
2. Increased amount for the
current period 484006.42 484006.42
(1) Withdrawal 484006.42 484006.42
3. Decreased amount for the
current period
(1) Disposal
4. Ending balance 1790929.22 1790929.22
III. Depreciation reserves
1. Beginning balance
2. Increased amount for the
current period
(1) Withdrawal
3. Decreased amount for the
current period
166ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
(1) Disposal
4. Ending balance
IV. Carrying value
1. Ending carrying value 1269382.91 1269382.91
2. Beginning carrying value 1753389.33 1753389.33
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:
27. Development Costs
Unit: RMB
Increased amount of the current period Decreased amount for the current period
Beginning Internal Recognized
Transferred
Item as into the
Ending
balance developme Others intangible current
balance
nt costs assets profit orloss
Total
Other notes:
28. 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 events Beginning Formed by Ending balance
generating balance business 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 events Beginning Ending balance
generating balance Withdrawal Disposal
goodwill
167ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Total
Information on the Assets Groups or Combination of Assets Groups which Goodwill Belongs to
Carrying Assets group or combination of assets groups
value of
goodwill Main composition Carrying value Recognition method Changes in current
period
9446847.38 Shenzhen Facility 21490611.97 Assets group or combination of assets No
Management groups capable of generating cash flows
Community independently in consideration of benefits
Technology Co. Ltd. from synergies of business combination
and the management’s administration and
monitoring of production and operating
activities.Notes of the testing process of goodwill impairment parameters (such as growth rate of the forecast period growth rate of stable
period rate of profit discount rate forecast period and so on for prediction of future present value of cash flows) and the
recognition method of goodwill impairment losses:
Influence of goodwill impairment testing
Note: The Company acquired 35% equity of Shenzhen Facility Management Community Technology Co. Ltd. in 2021 which
was a business combination not under the same control and resulted in a goodwill of RMB9446847.38 without impairment after
the impairment test.Other notes:
29. Long-term Prepaid Expense
Unit: RMB
Increased amount Amortization
Item Beginning balance of the current amount of the Other decreased Ending balance
period current period amount
Decoration fee 22751829.74 7000460.51 7522321.06 249366.73 21980602.46
Total 22751829.74 7000460.51 7522321.06 249366.73 21980602.46
Other notes:
30. 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 72321489.09 15066804.41 119305827.39 28122514.38
Internal unrealized
profit 439263809.16 109815952.29 137494156.00 34373539.00
Deductible losses 1159867308.26 288683459.58 1200124630.73 299411568.81
Accrued land VAT 3838271429.24 959567857.31 3184602479.28 796150619.82
Estimated profit
calculated at pre-sale
revenue of property 35766814.24 8941703.56 479584729.78 119896182.45
enterprises
168ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Other accrued expenses 4512525.55 974808.89 8579103.04 1862165.86
Total 5550003375.54 1383050586.04 5129690926.22 1279816590.32
(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 967914.16 241978.54 1231415.14 307853.79
than the tax basis
Total 967914.16 241978.54 1231415.14 307853.79
(3) Deferred Income Tax Assets or Liabilities Had Been Off-set Listed in Net Amount
Unit: RMB
Ending off-set amount Ending balance of Beginning off-set Beginning balance of
Item of deferred income tax deferred income tax amount of deferred
assets and liabilities assets and liabilities income tax assets and
deferred income tax
liabilities assets and liabilities
Deferred income tax
assets 1383050586.04 1279816590.32
Deferred income tax
liabilities 241978.54 307853.79
(4) List of Unrecognized Deferred Income Tax Assets
Unit: RMB
Item Ending balance Beginning balance
Deductible temporary differences 52448071.36 73039624.89
Deductible losses 508734563.66 477329778.68
Total 561182635.02 550369403.57
(5) Deductible Losses of Unrecognized Deferred Income Tax Assets will Due in the Following Years
Unit: RMB
Year Ending amount Beginning amount Notes
2022 49880895.14 The deductible losses of 2017
2023 265603820.64 265603820.64 The deductible losses of 2018
2024 124895242.05 124895242.05 The deductible losses of 2019
2025 22711013.85 22711013.85 The deductible losses of 2020
2026 14238807.00 14238807.00 The deductible losses of 2021
2027 81285680.12 The deductible losses of 2022
Total 508734563.66 477329778.68
Other notes:
31. Other Non-current Assets
Unit: RMB
Ending balance Beginning balance
Item Carrying Impairment Carrying Impairment
amount provision Carrying value amount provision Carrying value
169ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Prepayment for
purchase of
fixed assets
investment 115779.31 115779.31 115779.31 115779.31
properties and
intangible
assets
Prepayment for
equity 42726200.00 42726200.00
acquisition
Others [note] 2635093.77 2635093.77 2730018.54 2730018.54
Total 2750873.08 2750873.08 45571997.85 45571997.85
Other notes:
[Note]:The amount is mainly the registered asset of real estate for investment 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.
32. Short-term Borrowings
(1) Category of Short-term Borrowings
Unit: RMB
Item Ending balance Beginning balance
Notes of the category for short-term loans:
(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:
33. Trading Financial Liabilities
Unit: RMB
Item Ending balance Beginning balance
Of which:
Of which:
Other notes:
34. Derivative Financial Liabilities
Unit: RMB
Item Ending balance Beginning balance
Other notes:
35. Notes Payable
Unit: RMB
Category Ending balance Beginning balance
The total amount of notes payable due but unpaid was RMBXXX.
170ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
36. Accounts Payable
(1) List of Accounts Payable
Unit: RMB
Item Ending balance Beginning balance
Engineering construction expense
payable 484123042.01 242383453.30
Estimated payables 32863907.25 27871456.62
Others 91296439.26 81639902.31
Total 608283388.52 351894812.23
(2) Significant Accounts Payable Aged over 1 Year
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. 18217672.83 Unsettled
Shenzhen Ruihe Construction Decoration
Co. Ltd. 7129246.31 Unsettled
Shanghai Mingpeng Construction Group
Co. Ltd. 5976705.79 Unsettled
Shenzhen Weiye Decoration Group Co.Ltd. 3269572.34 Unsettled
Total 59593197.27
Other notes:
37. Advances from Customers
(1) List of Advances from Customers
Unit: RMB
Item Ending balance Beginning balance
Rental 2260847.31 1381666.59
Total 2260847.31 1381666.59
(2) Significant Advances from Customers Aged over 1 Year
Unit: RMB
Item Ending balance Unpaid/Un-carry-over reason
38. Contract Liabilities
Unit: RMB
Item Ending balance Beginning balance
House payment in advance 857317217.99 1329251898.56
Property fee in advance 15740950.87 24258900.52
Other payments in advance 47769871.95 20655010.32
Total 920828040.81 1374165809.40
Significant changes in the amount of carrying value and the reason in the Reporting Period
Unit: RMB
171ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Item Change in amount Reason(s)
SZPRD-Fuchang Garden New buy-back payments in accordance with the terms of the
Phase II (Fuhui Huayuan) 316738487.14 repurchase agreement.SZPRD-Golden Collar’s -527519133.76 The carried down qualified for revenue carried forward is carriedResort forward to income from principal businesses.SZPRD-Banshan Yujing
Phase II -253265320.98
Banshan Yujing Phase II was delivered this year and met the conditions
for carried down revenue.Total -464045967.60 ——
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.The proceeds information of top five advance sale amount:
Unit: RMB
No. Project name Beginning balance Ending balance Estimated date of Advance salecompletion proportion
SZPRD-Fuchang
1 Garden Phase II 840878470.63 524139983.49 30 June 2023 100.00%
(Fuhui Huayuan)
2 SZPRD-GoldenCollar’s Resort 15574706.92 543093840.68 25 December 2019 95.02%
3 SZPRD-HupanYujing Phase II 716422.02 8401706.42 30 November 2017 96.00%
4 SZPRD-BanshanYujing Phase II 110921.17 253376242.15 12 January 2022 100.00%
5 SZPRD-HupanYujing Phase I 36697.25 36697.25 1 June 2015 88.04%
39. Payroll Payable
(1) List of Payroll Payable
Unit: RMB
Item Beginning balance Increase for the current Decrease for theperiod current period Ending balance
I. Short-term salary 227076754.76 907831085.48 900181732.27 234726107.97
II. Post-employment
benefit-defined 2208300.26 75306256.06 75863872.27 1650684.05
contribution plans
III. Termination
benefits 1333012.21 7049885.90 5633298.11 2749600.00
Total 230618067.23 990187227.44 981678902.65 239126392.02
(2) List of Short-term Salary
Unit: RMB
Item Beginning balance Increase for the Decrease for thecurrent period current period Ending balance
1. Salary bonus allowance
subsidy 210074251.52 794988506.48 788789678.14 216273079.86
2. Employee welfare 1522398.43 6668010.03 6781928.92 1408479.54
3. Social insurance 175180.41 30144641.17 30248751.23 71070.35
Of which: Medical insurance
premiums 171489.07 26038316.48 26149746.01 60059.54
Work-related injury insurance
premiums 1148.13 1182667.30 1182551.73 1263.70
172ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Maternity insurance 2543.21 1360657.50 1361046.09 2154.62
Other commercial insurances 1562999.89 1555407.40 7592.49
4. Housing fund 1739640.18 27832396.89 28292393.76 1279643.31
5. Labor union budget and
employee education budget 12762584.50 14569702.27 15979320.17 11352966.60
Non-monetary benefits 802699.72 33627828.64 30089660.05 4340868.31
Total 227076754.76 907831085.48 900181732.27 234726107.97
(3) List of Defined Contribution Plans
Unit: RMB
Item Beginning balance Increase for the current Decrease for theperiod current period Ending balance
1. Basic pension
insurance 123001.91 59598053.07 59575378.23 145676.75
2. Unemployment
insurance premiums 3276.52 1606957.30 1606108.79 4125.03
3. Supplementary
pension payment 2082021.83 14101245.69 14682385.25 1500882.27
Total 2208300.26 75306256.06 75863872.27 1650684.05
Other notes:
40. Taxes Payable
Unit: RMB
Item Ending balance Beginning balance
VAT 15392042.91 32126690.19
Enterprise income tax 57096046.69 89593466.11
Personal income tax 3141049.35 4784809.66
Urban maintenance and construction tax 1464551.01 2226514.52
Land appreciation tax 3838271429.24 3184727554.49
Land use tax 153626.98 938263.93
Property tax 600966.66 406052.03
Educational surcharge 707668.15 1063657.57
Local educational fee 383745.82 573380.15
Others 67220.00 149801.69
Total 3917278346.81 3316590190.34
Other notes:
41. Other Payables
Unit: RMB
Item Ending balance Beginning balance
Dividends payable 12202676.04 17542675.98
Other payables 1502883156.41 1010079414.96
Total 1515085832.45 1027622090.94
173ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
(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 17542675.98
Total 12202676.04 17542675.98
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 316108932.91 308385429.16
Margin 13585641.99 13643729.01
Collection on behalf 3596458.33 1574151.30
Intercourse funds 855267729.70 425545263.18
Accrued expenses 224646116.70 169426248.94
Payment on behalf 19052869.33 17589956.23
Others 70625407.45 73914637.14
Total 1502883156.41 1010079414.96
2) Significant Other Accounts Payable Aging over One Year
Unit: RMB
Item Ending balance Unpaid/Un-carry-over reason
Shenzhen Pason Aluminum Technology 196416155.45 Did not submit the payment applicationCo. Ltd. for historical reasons
Shenzhen Bay Technology Development
Co. Ltd. 179966045.36 Unsettled
174ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Shenzhen Hengyu (Group) Co. Ltd. 162000000.00 Unsettled
Shenzhen Real Estate Jifa Warehousing
Co. Ltd. 42296665.14
Come-and-go accounts without specific
payment term
Shenzhen Qianhai Micro Public Bank
Co. Ltd. 6875262.75 Lease term not expired
Total 587554128.70
Other notes:
42. Held-for-sale Liabilities
Unit: RMB
Item Ending balance Beginning balance
Other notes:
43. Current Portion of Non-current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Current portion of long-term borrowings 196645408.45 68984050.47
Lease obligation matured within 1 Year 22213358.37 14940651.36
Total 218858766.82 83924701.83
Other notes:
44. Other Current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Tax to be charged off 83991786.83 77403624.02
Total 83991786.83 77403624.02
Increase/decrease of the short-term bonds payable:
Unit: RMB
Amortizatio
Bond Issue Beginning Issued in Interest n of Repaid inName Par value Issue date duration amount balance the current accrued at premium the current
Ending
period par value and period balance
depreciation
Total
Other notes:
45. Long-term Borrowings
(1) Category of Long-term Borrowings
Unit: RMB
Item Ending balance Beginning balance
Pledged loans 3156782344.00 2999400000.00
Mortgage loans 1500000.00
Credit loan 462000000.00 523600000.00
Total 3618782344.00 3524500000.00
Note to the category of long-term borrowings:
175ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
The pledged borrowings at the period-end were used to develop the Bangling urban renewal 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 29 November 2019 to 20 November 2024. And 69% equity of Rongyao Real Estate held by the Company was pledged and
the guarantee mode was the joint liability guaranty.The pledge borrowings at the period-end 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.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:
46. 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
Bond Issue Beginning Issued in Interest
Amortization
of premium Repaid inName Par value Issue date Endingduration amount balance the current accrued at the currentperiod par value and balancedepreciation period
Total ——
(3) Convertible Conditions and Time for 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
Period-beginning Increase for the current Decrease for the currentOutstanding period period Period-end
financial
instruments Number Carrying Number Carryingvalue value Number
Carrying
value Number
Carrying
value
Notes to basis for the classification of other financial instruments as financial liabilities
Other notes:
47. Lease Liabilities
Unit: RMB
Item Ending balance Beginning balance
Lease payments 119208080.55 124179565.50
Unrecognized financing expense -19031438.63 -26157731.25
176ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Less: lease liabilities due within 1 year -22213358.37 -14940651.36
Total 77963283.55 83081182.89
Other notes:
48. Long-term Payables
Unit: RMB
Item Ending balance Beginning balance
(1) Long-term Payables Listed by Nature
Unit: RMB
Item Ending balance Beginning balance
Other notes:
(2) Specific Payables
Unit: RMB
Item Beginning balance Increase for the Decrease for the Reason forcurrent period current period Ending balance formation
Other notes:
49. Long-term Payroll Payable
(1) List of Long-term Payroll Payable
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
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:
177ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
50. Provisions
Unit: RMB
Item Ending balance Beginning balance Reason for formation
Pending litigation 766612.52 1425490.50 Xuansheng propertymanagement fee lawsuit
Total 766612.52 1425490.50
Other notes including notes to related significant assumptions and evaluation of significant provisions:
Refer to Note XIV-2 for details.
51. Deferred Income
Unit: RMB
Item Beginning balance Increase for the Decrease for thecurrent period current period Ending balance
Reason for
formation
Item involving government grants:
Unit: RMB
Amount
Amount of recorded Amountrecorded Amount
Item Beginning
newly into non- into other offset cost Other Ending Related to
balance subsidy for operatingthe current income in income in
in the assets/relat
the current current
changes balance ed income
period the current period periodperiod
Other notes:
52. Other Non-current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Utility specific fund 634414.79 615787.03
Housing principle fund 15105690.42 21212930.24
House warming deposit 7058030.03 7008598.13
Electric Equipment Maintenance fund 4019415.44 4019415.44
Deputed maintenance fund 53798172.96 46608942.66
Follow-up investment of employees for
Guanlan Bangling project 40000000.00 40000000.00
Others 7393196.15 6594009.58
Total 128008919.79 126059683.08
Other notes:
53. Share Capital
Unit: RMB
Increase/decrease (+/-)
Beginning
balance New shares Ending balance
issued Bonus shares
Bonus issue
from profit Others Subtotal
Total shares 595979092.00 595979092.00
Other notes:
178ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
54. 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
Period-beginning Increase for the current Decrease for the currentOutstandin period period Period-end
g financial
instruments Number Carrying Carrying Carryingvalue Number value Number value Number
Carrying
value
Changes of other equity instruments in the Current Period reasons thereof and basis of related accounting treatment:
Other notes:
55. Capital Reserve
Unit: RMB
Item Beginning balance Increase for the Decrease for thecurrent period current period Ending balance
Capital premium
(premium on stock) 73854303.62 73854303.62
Other capital reserves 80488045.38 80488045.38
Total 154342349.00 73854303.62 80488045.38
Other notes including a description of the increase or decrease for the current period and the reasons for the change:
Note: Capital reserve in the Current Period decreased because:
The Company’s subsidiary ITC Property Management Company acquired 100% equity of Shenzhen Property Management Co.Ltd. in January 2022 and 100% equity of Shenzhen Shenfubao Property Development Co. Ltd. Shenzhen Shenfubao
Hydropower Municipal Service Co. Ltd. Shenzhen Free Trade Zone Security Service Co. Ltd. Shenzhen Free Trade Zone
Property Development Co. Ltd. in February 2022 both by means of business combination under the same control. It is stipulated
that during the preparation of comparative statements at the end of the period for business combination the parties involved shall
be deemed to be in their present state at the time when the ultimate controlling party begins to exercise control. Therefore during
the combination of the acquired companies last year the Company increased the opening surplus reserve and undistributed profit
respectively by RMB73854303.62 and RMB17937391.71. At the combination date we reversed RMB73854303.62 in capital
surplus and RMB17937391.71 in surplus reserves which were retroactively presented as an increase under the same control as
the previous year and RMB222424006.29 in unappropriated profit offset the difference.
56. Treasury Shares
Unit: RMB
Item Beginning balance Increase for the current Decrease for theperiod current period Ending balance
Other notes including a description of the increase or decrease for the current period and the reasons for the change:
179ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
57. Other Comprehensive Income
Unit: RMB
Amount for the current period
Less:
recorded in Less:
other recorded in
comprehen other
sive comprehensi Attributave income in ble
Item Beginning balance Amount before income in Attributable to the Ending balance
deducting income tax prior prior period Less: Income minority
for the current period period and and tax expense
Company as the parent
transferred in after tax
sharehol
transferred ders
in profit or retained after tax
loss in the earnings in
current the current
period period
I. Other
comprehensive
income that may
not be -2574121.54 -168720.11 -168720.11 -2742841.65
reclassified to
profit or loss
Changes in fair
value of other
equity instrument -2574121.54 -168720.11 -168720.11 -2742841.65
investment\
II. Other
comprehensive
income that may
subsequently be -5600532.12 4488995.82 4488995.82 -1111536.30
reclassified to
profit or loss
Differences
arising from
translation of
foreign currency- -5600532.12 4488995.82 4488995.82 -1111536.30
denominated
financial
statements
Total of other
comprehensive -8174653.66 4320275.71 4320275.71 -3854377.95
income
Other notes including the adjustment of the effective gain/loss on cash flow hedges to the initial recognized amount:
58. Specific Reserve
Unit: RMB
Item Beginning balance Increase for the current Decrease for theperiod current period Ending balance
Other notes including a description of the increase or decrease for the current period and the reasons for the change:
59. Surplus Reserves
Unit: RMB
Item Beginning balance Increase for the current Decrease for theperiod current period Ending balance
Statutory surplus
reserves 47209537.05 19249057.34 17937391.71 48521202.68
Discretional surplus
reserves 365403.13 365403.13
Total 47574940.18 19249057.34 17937391.71 48886605.81
Notes including changes and reason of change:
180ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
60. Retained Earnings
Unit: RMB
Item Current period Previous period
Beginning balance of retained profits
before adjustments 3788180758.20 3038993912.43
Total adjustment of retained earnings at
the beginning of the adjustment (+ for 12149572.03 -9261494.67
up - for down)
Beginning balance of retained profits
after adjustments 3800330330.23 3029732417.76
Add: Net profit attributable to owners of
the Company as the parent 537664698.69 1025380909.03
Less: Withdrawal of statutory surplus
reserve 19249057.34 10431568.84
Dividends of common shares payable 405265782.56 244351427.72
Others 222424006.29
Ending retained profits 3691056182.73 3800330330.23
List of adjustment of beginning retained profits:
1) RMBXXX 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) RMB12149572.03 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.
61. 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 3601884752.72 1937899553.46 4825516904.62 1819108894.44
Others 106784294.13 40878067.76 85603623.71 8273928.74
Total 3708669046.85 1978777621.22 4911120528.33 1827382823.18
Whether the lower of the net profit before and after deduction of non-recurring gains and losses through audit is negative
□Yes□No
Relevant information of revenue:
Unit: RMB
Category of contracts Segment 1 Segment 2 Total
Product categories 3708669046.85 3708669046.85
Of which:
Real estate 1913674526.31 1913674526.31
Property management 1666961878.32 1666961878.32
Leasing business 128032642.22 128032642.22
Classification by
operating region
Of which:
Shenzhen 3122667234.12 3122667234.12
Other regions 586001812.73 586001812.73
181ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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
Information about performance obligations:
On 31 December 2022 the transaction price assigned to unfulfilled (or partially fulfilled) performance obligations was estimated
to be RMB921 million which is mainly expected future revenue of transaction prices that have not met the delivery conditions
stipulated in sales contracts of real estate. The Company is expected to achieve the planned sales revenue within one or two years
when the house property is completed and passes the acceptance which meets the delivery conditions stipulated in sales contracts
and when the customers acquire the control rights of relevant goods or services on a pilot basis.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 RMB920828040.81 at the period-end among which RMB917619093.82 was expected to be recognized in 2023
RMB3208946.99 in 2024.Other notes:
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.The top 5 accounts received with confirmed amount in the Reporting Period:
Unit: RMB
No. Project name Income balance
1 Golden Collar’s Resort 1592762154.29
2 Banshan Yujing Phase I 253083803.64
3 Hupan Yujing Phase II 22767795.40
4 Songhu Langyuan 841321.90
5 Hupan Yujing Phase I 709174.33
62. Taxes and Surtaxes
Unit: RMB
182ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Item Amount for the current period Amount for the previous period
Urban maintenance and construction tax 11647933.20 15933888.97
Educational surcharge 5019133.52 6928652.97
Property tax 5773106.72 11021155.00
Land use tax 783939.43 1548163.43
Land appreciation tax 695789536.89 1309913734.35
Local educational fee 3314949.88 4465135.88
Other taxes 3592058.16 2867262.46
Total 725920657.80 1352677993.06
Other notes:
63. Selling Expense
Unit: RMB
Item Amount for the current period Amount for the previous period
Agency fee 30682192.07 35845559.65
Consultancy and sales service charges 5037241.10 8151107.45
Advertising expenses 2582813.39 9731964.11
Employee remuneration 7740228.91 6438365.79
Others 7499522.31 13205019.02
Total 53541997.78 73372016.02
Other notes:
64. Administrative Expense
Unit: RMB
Item Amount for the current period Amount for the previous period
Employee remuneration 238534091.52 230698574.25
Administrative office cost 28064014.57 36035374.29
Assets amortization and depreciation
expense 26431430.81 22235485.56
Litigation costs 960169.09 1316110.53
Consultancy and broker charges 7721484.95 4829258.25
Entertainment expense 3661253.01 2623501.19
Rent and property fee 2313473.60 2217778.35
Travel expense 516335.81 667459.58
Others 21789402.38 23351813.61
Total 329991655.74 323975355.61
Other notes:
65. Development Expense
Unit: RMB
Item Amount for the current period Amount for the previous period
Employee remuneration 2948680.83 1959851.56
183ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Depreciation and amortization expense 27342.88 6204.09
Office cost 85952.39 64656.03
Travel expense 16471.28 17928.57
Entertainment expense 4280.00 18118.90
R&D material expense 25050.00 68288.00
Amortization of right-of-use assets 59696.04 20285.78
Others 76655.69 16464.87
Total 3244129.11 2171797.80
Other notes:
66. Finance Costs
Unit: RMB
Item Amount for the current period Amount for the previous period
Finance costs 64941564.63 75361420.03
Less: Interest income -21591864.72 -75033921.17
Foreign exchange gains or losses -600187.19 145683.08
Others 7821671.11 4888485.39
Total 50571183.83 5361667.33
Other notes:
67. Other Income
Unit: RMB
Sources Amount for the current period Amount for the previous period
Government grants related to income 10637742.42 24201919.63
Government grants related to assets
Return of auxiliary expense for
individual income tax withheld 282364.88 270696.35
Additional deduction of VAT 8204836.92 6867086.50
Rebate of VAT 359114.45 672523.81
Total 19484058.67 32012226.29
68. Investment Income
Unit: RMB
Item Amount for the current period Amount for the previous period
Long-term equity investment income
accounted by equity method 2040461.81 4650460.58
Funds central clearing house money
management investment -59130.91 1959264.79
Total 1981330.90 6609725.37
Other notes:
69. Net Gain on Exposure Hedges
Unit: RMB
184ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Item Amount for the current period Amount for the previous period
Other notes:
70. Gain on Changes in Fair Value
Unit: RMB
Sources Amount for the current period Amount for the previous period
Trading financial assets 117082.19 193746.57
Total 117082.19 193746.57
Other notes:
71. Credit Impairment Loss
Unit: RMB
Item Amount for the current period Amount for the previous period
Bad debt loss -17395139.90 -29194857.89
Total -17395139.90 -29194857.89
Other notes:
72. Asset Impairment Loss
Unit: RMB
Item Amount for the current period Amount for the previous period
II. Inventory falling price loss and impairment
provision for contract performance costs -528430.23 23120.82
Total -528430.23 23120.82
Other notes:
73. Asset Disposal Income
Unit: RMB
Sources Amount for the current period Amount for the previous period
Gains on disposal of fixed assets -130574.60
Investment properties disposal gains 175811822.99
Others 129357.05 27.94
Total 175810605.44 27.94
74. Non-operating Income
Unit: RMB
Amount recorded in the
Item Amount for the current period Amount for the previousperiod current non-recurring profit orloss
Government grants 10000.00
Gains on damage and scrap of
non-current assets 5963.68 9650.00 5963.68
Confiscated income 354580.59 809424.18 354580.59
185ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Payments unable to clear 3129253.59 2330544.39 1151425.28
Others 3708206.42 12427940.84 3192592.06
Total 7198004.28 15587559.41 4704561.61
Government grants recorded into current profit or loss
Unit: RMB
Whether
Item Distribution Distribution
influence the Special Related to
entity reason Nature profits or losses subsidy or
Amount for the
current period Previous period assets/relatedof the year or not income
not
Subsidies obtained from the
state by undertaking the
Others Subsidies sustainability of public utilities Related tothe supply of socially necessary No No 10000.00 revenue
products or the function of
price control
Other notes:
Other non-operating income in the current period mainly comes from the owner tarte settlement confirmed by the Company.
75. Non-operating Expense
Unit: RMB
Amount for the previous Amount recorded in theItem Amount for the current period period current non-recurring profit orloss
Donation 26000.00 139000.01 26000.00
Litigation expenses 258891.82 191457.86 147528.97
Penalty and fine for delaying
payment 121377.17 263358.41 232740.02
Losses from damage and
scrap of non-current assets 207427.68 76980.64 172026.10
Others 1943197.07 6825181.98 1773514.16
Total 2556893.74 7495978.90 2351809.25
Other notes:
76. 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 324691681.99 664966662.82
Deferred income tax expense -103299870.97 -329061924.63
Total 221391811.02 335904738.19
(2) Adjustment Process of Accounting Profit and Income Tax Expense
Unit: RMB
Item Amount for the current period
Total profit 750732418.98
Current income tax expense accounted at statutory/applicable tax rate 187683104.75
Influence of applying different tax rates by subsidiaries -4167739.41
186ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Influence of income tax before adjustment 19508155.56
Influence of non-deductible costs expenses and losses 19580957.75
The effect of using deductible losses of deferred income tax assets that have not
been recognized in the previous period -4183108.31
Effect of deductible temporary differences or deductible losses on deferred
income tax assets not recognized in the current period 2512300.58
Changes in the balance of deferred income tax assets/liabilities at the beginning
of the period due to adjustment of tax rate 458140.10
Income tax expense 221391811.02
Other notes:
77. Other Comprehensive Income
Refer to Note VII-57 for details.
78. Cash Flow Statement
(1) Cash Generated from Other Operating Activities
Unit: RMB
Item Amount for the current period Amount for the previous period
Large intercourse funds received 531021536.31 119896015.78
Interest income 21591864.72 74905183.74
Net margins security deposit and
various special funds received 118560933.18 134580455.36
Government grants received 10637742.42 24634476.35
Other small receivables 30089906.24 830679.93
Decreased limited amount for the current
period 366965985.73
Total 1078867968.60 354846811.16
Notes:
(2) Cash Used in Other Operating Activities
Unit: RMB
Item Amount for the current period Amount for the previous period
Paying administrative expense in cash 61038183.86 55452674.82
Paying selling expense in cash 48198423.56 62996298.93
Net payment of utility expense and various
collecting payments on behalf of others 79085946.82 179760738.91
Other small payments 47884937.67 35233110.90
Amount of newly limited funds 1721815.22 373079206.86
Total 237929307.13 706522030.42
Notes:
(3) Cash Generated from Other Investing Activities
Unit: RMB
Item Amount for the current period Amount for the previous period
187ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Notes:
(4) Cash Used in Other Investing Activities
Unit: RMB
Item Amount for the current period Amount for the previous period
Notes:
(5) Cash Generated from Other Financing Activities
Unit: RMB
Item Amount for the current period Amount for the previous period
Notes:
(6) 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 271489501.62 42726200.00
common control at the combination date
Profits allocation from consolidated
companies under common control to 5339999.94
former shareholders
Payment for lease liabilities 29681985.71 20052203.22
Total 306511487.27 62778403.22
Notes:
79. Supplemental Information for Cash Flow Statement
(1) Supplemental Information For Cash Flow Statement
Unit: RMB
Supplemental information Amount during thecurrent period Previous period
1. Reconciliation of net profit to net cash flows generated from
operating activities
Net profit 529340607.96 1008009706.75
Add: Provision for impairment of assets 17923570.13 29171737.07
Depreciation of fixed assets oil-gas assets and productive biological
assets 89598947.26 53521819.80
Depreciation of right-of-use assets 22380277.42 13946768.72
Amortization of intangible assets 484006.42 428057.97
Amortization of long-term prepaid expenses 7522321.06 5168232.95
Losses from disposal of fixed assets intangible assets and other long-
lived assets (gains represented by “-”) -170564114.45 -27.94
Losses from scrap of fixed assets (gains represented by “-”) 201464.00 67330.64
Losses from changes in fair value (gains represented by “-”) -117082.19 -193746.57
Finance costs (gains represented by “-”) 69585200.52 78852906.52
188ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Investment loss (gains represented by “-”) -1981330.90 -6609725.37
Decrease in deferred income tax assets (gains represented by “-”) -103233995.72 -329039966.22
Increase in deferred income tax liabilities (decrease represented by “-”) -65875.25 -21958.41
Decrease in inventory (gains represented by “-”) -1729017854.81 -3692265882.00
Decrease in accounts receivable generated from operating activities
(gains represented by “-”) 611487330.14 -541399403.57
Increase in accounts payable used in operating activities (decrease
represented by “-”) 761689632.27 1551384397.21
Others
Net cash flows from operating activities 105233103.86 -1828979752.45
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 1509693857.48 1907742235.25
Less: Opening balance of cash 1907742235.25 4340900107.67
Add: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents -398048377.77 -2433157872.42
(2) Net Cash Paid ForAcquisition of Subsidiaries
Unit: RMB
Amount
Other notes:
(3) Net Cash Received from Disposal of the Subsidiaries
Unit: RMB
Amount
Of which:
Of which:
Of which:
Other notes:
(4) Cash and Cash Equivalents
Unit: RMB
Item Ending balance Beginning balance
I. Cash 1509693857.48 1907742235.25
Of which: Cash on hand 43833.00 122823.16
Bank deposits on demand 1506148081.54 1902488048.83
Other monetary assets on demand 3501942.94 5131363.26
III. Ending balance of cash and cash
equivalents 1509693857.48 1907742235.25
Other notes:
189ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
80. Notes to Items of the Statements of Changes in Owners’ Equity
Notes to the name of “Other” of closing balance of the same period of last year adjusted and the amount adjusted:
Not applicable.
81. Assets with Restricted Ownership or Right of Use
Unit: RMB
Item Ending carrying amount Reason for restriction
Monetary capital 7835036.35 Note 1 - Note 10
Land use right of Fumin New Village
Futian District 542507314.43 Note 11
Total 550342350.78
Other notes:
Note 1: In terms of monetary assets with restricted right to use at the period-end there was an escrow deposit of RMB44820.14 in
the catering branch of the subsidiary company Shandong Shenguomao Real Estate Management Co. Ltd.Note 2: In terms of monetary assets with restricted right to use at the period-end there was an advance payment guarantee of
RMB459627.50 issued by the subsidiary company Shenzhen Facility Management Community Technology Co. Ltd. in
December 2021 for the upgrading and reconstruction of the smart park of Shenzhen Bay Eco-Technology Park and the software
platform development contract.Note 3: In terms of monetary assets with restricted right to use at the period-end there was RMB3000000.00 in the subsidiary
company Shenzhen Facility Management Community Technology Co. Ltd. blocked by the court due to pre-litigation preservation
for contract disputes.Note 4: In terms of monetary assets with restricted right to use at the period-end there was a loan deposit of RMB1131041.58
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 5: In terms of monetary assets with restricted right to use at the period-end there was RMB2860000.00 of interest on
unexpired term deposits accrued at the period-end.Note 6: In terms of monetary assets with restricted right to use at the period-end there was RMB16111.20 of interest on large-
denomination CDs (more than one year).Note 7: In terms of monetary assets with restricted right to use at the period-end there was RMB129154.28 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 8: In terms of monetary assets with restricted right to use at the period-end there was a restricted fund of RMB42781.65 in
the blocked account of the subsidiary company Shenzhen Huazhengpeng Property Management Co. Ltd.Note 9: At the end of the period there were monetary funds with restricted use rights including an amount of RMB 150000.00
which was provided by the subsidiary Shenzhen Guomao Property Management Co. Ltd. This amount was submitted on 28
December 2022 as an on-demand bid bond to participate in the bidding process for the Jiulong Street Domestic Waste Sorting
Operation Project (Bidding No.: 21C00183).Note 10: In terms of monetary assets with restricted right to use at the period-end there was an deposit for POS of RMB1500.00
in the Shandong Shenguomao Real Estate Management Co. Ltd.Note 11: Due to the needs of daily business activities the Company applied for a loan from Bank of Communications Co. Ltd.Shenzhen Branch and mortgaged the land use right of Fumin New Village Futian District. The loan has a duration from 27
November 2020 to 27 November 2023 and applies floating interest rates.
190ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
82. Foreign Currency Monetary Items
(1) Foreign Currency Monetary Items
Unit: RMB
Item Closing foreign currencybalance Exchange rate
Ending balance converted to
RMB
Monetary capital 6918098.51
Of which: USD 120000.00 6.9646 835752.00
EUR
HKD 1109885.02 0.8933 991426.99
VND 17434655883.00 0.0003 5090919.52
Accounts prepaid 8556.94 7643.66
Of which: HKD 8556.94 0.8933 7643.66
Other payables 4542972.70 4058101.22
Of which: HKD 4542972.70 0.8933 4058101.22
Accounts receivable
Of which: USD
EUR
HKD
Long-term borrowings
Of which: USD
EUR
HKD
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
Item Main operating
Standard
place currency for Basis for choosingaccounting
Shum Yip Properties Development Co.Ltd. and its subsidiary Hong Kong HKD Located in HK settled by HKD
Vietnam Shenguomao Property
Management Co. Ltd. Vietnam VND Located in Vietnam settled by VND
83. Arbitrage
Qualitative and quantitative information of relevant arbitrage instruments hedged risk in line with the type of arbitrage to disclose:
84. Government Grants
(1) Basic Information on Government Grants
Unit: RMB
Category Amount Listed items Amount recorded in thecurrent profit or loss
Subsidies for pandemic
prevention 4166354.92 Other income 4166354.92
Subsidies for purchase of post 1734011.90 Other income 1734011.90
191ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
The Subsidy for Stabilizing
Employment 1526617.17 Other income 1526617.17
Other subsidies 1205562.34 Other income 1205562.34
Incentive grants for domestic
waste classification 796209.20 Other income 796209.20
Shenzhen standard field
special funds 658326.00 Other income 658326.00
Service industry special
guidance funds to subsidize 400000.00 Other income 400000.00
Military service grants for
college students 150660.89 Other income 150660.89
Total 10637742.42 10637742.42
(2) Return of Government Grants
□Applicable□Not applicable
Other notes:
85. Other
VIII. 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
Time and Income of Net profits of
Name of place of Cost of Proportion of Way to gain Recognition acquiree from acquiree from
acquiree gaining gaining the equity equity Purchase date basis of the purchase the purchase
equity equity purchase date date to date toperiod-end period-end
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
Note to determination method of the fair value of the combination cost consideration and changes:
The main formation reason for the large goodwill:
192ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Other notes:
(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
Recognitio Income from the Net profits from Income of the Net profits of the
Combined Proportion of Basis Combination n basis of period-begin to the
the period-begin to
the combination acquiree during acquiree duringparty the equity date combinatio combination date of date of the the period of the period ofn date the acquiree acquiree comparison comparison
Shenzhen Controlled
Property 100.00%
31 January
by the same Shareholdi2022 ng change 25035486.19 9699809.03 163878223.34 3393386.78Management ultimate
193ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Co. Ltd. controlling completed
party before
and after
the
combinatio
n
Controlled
by the same
Shenzhen ultimate
Foreign Trade controlling Shareholdi
Property 100.00% party before 28 February ng change 5958619.92 1928949.51 49985238.95 15663629.13
Management and after 2022 completed
Co. Ltd. the
combinatio
n
Controlled
by the same
Shenzhen ultimate
Shenfubao controlling Shareholdi
Property 100.00% party before 28 February2022 ng change 25207937.91 -1029615.71 137536234.26 1524213.27Development and after completed
Co. Ltd. the
combinatio
n
Controlled
Shenzhen by the same
Shenfubao ultimate
Hydropower controlling 28 February Shareholdi
Municipal 100.00% party before 2022 ng change 12592981.47 -601470.42 50404146.02 141335.20
Service Co. and after completed
Ltd. thecombinatio
n
Controlled
by the same
Shenzhen Free ultimate
Trade Zone controlling 28 February ShareholdiSecurity 100.00% party before 2022 ng change 4908193.51 -401524.25 29035534.66 528441.32Service Co. and after completed
Ltd. the
combinatio
n
Other notes:
(2) Combination Cost
Unit: RMB
Shenzhen Shenzhen Shenzhen Shenzhen Shenzhen Free
Combination cost Property
Foreign Trade Shenfubao Shenfubao
Management Co. Property Property Hydropower
Trade Zone
Security Service
Ltd. Management Development Co. Municipal ServiceCo. Ltd. Ltd. Co. Ltd. Co. Ltd.Cash 206390636.61 20902006.86 61147388.00 21839733.03 3935937.12
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:
194ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Other notes:
(3) The Carrying Value of Assets and Liabilities of the Combined Party on the Combination Date
Unit: RMB
Shenzhen Property Shenzhen Foreign Shenzhen Shenfubao Shenzhen Shenfubao Shenzhen Free Trade
Management Co. Ltd. Trade Property Property Development Hydropower Municipal Zone Security ServiceManagement Co. Ltd. Co. Ltd. Service Co. Ltd. Co. Ltd.Combinati End of the Combinati End of the Combinati End of the Combinati End of the End of the
on date previous previous previous previous
Combinati previous
period on date period on date period on date period on date period
10583766
Assets: 10069003 41299553 42931316 60458752 61481837 38682699 35566312 13120702 144799335.25 4.60 .50 .30 .36 .99 .45 .10 .94 .02
Monetary 58855529 65906572 10609630 20820248 8732915. 12441809 4663174. 4186518. 3922018. 5640117.capital .69 .11 .28 .28 07 .51 47 89 67 11
Accounts 6828196. 1069114. 26118212 14738482 12859828 6336522. 4233577. 2073848.receivable 454920.23 51580.0032 51 .57 .13 .40 79 07 13
Inventories 428476.18 860082.56 84935.19 103719.68 140.00 31699.42 184918.86 186658.86 40885.60 25885.60
Fixed 2478334. 2546464. 2678518. 2534272.assets 165161.96 172534.15 633898.40 661516.56 72922.78 79360.0818 18 26 41
Intangible
assets 262405.61 270899.35
Trading
financial 7115781.assets 28
Other 35418132 24549210 14070792 13497148 21673963 30607309 19564582 24190096 4851298. 6660722.receivables .94 .13 .18 .50 .54 .31 .83 .56 82 10
Investment 1416449. 1434434. 8043206. 8116325.properties 67 11 72 76
62204013
Liabilities: 66756112 22654094 26214806 32820304 32813774 17047124 13329266 9296560. 10254266.13 .80 .49 .80 .88 .80 .62 .85 57 .40
Borrowing
s
Accounts
payable 4490.00 4500.00 13226287 10055529 9748764. 5871781.2200.00 2200.00.40.998956
Payments
received in 2154855. 2362915.423970.84 937.00 225682.87 115861.36
advance 41 66
Payroll 10205112 18747806 7991914. 7578271. 3632907. 6151658. 1656806. 4221419. 3679238.payable 966353.70.57 .09 43 64 10 09 26 11 77
Tax and
fees 6547489. 1987355. 4485268. 7680380. 2355221. 2149728. 498884.07 422251.30 73144.90 125128.30
payables 62 64 35 89 84 75
Other 30430187 38181834 6824117. 7681380. 10292221 10681537 5422380. 5378427. 4886135. 6334037.payables .40 .61 26 49 .49 .84 29 73 20 97
Long-term 14133360 7836916. 3347367. 3270273. 1154911. 1412404.payables .26 46 45 78 64 47
Net assets 43633652 33933921 18645459 16716509 27638447 28668063 21635574 22237045 3824142. 4225666..12.80.01.50.48.19.83.253762
Less: non-
controlling 1839029. 1839939.interests 96 00
195ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Net assets 43633652 33933921 18645459 16716509 25799417 26828124 21635574 22237045 3824142. 4225666.acquired .12 .80 .01 .50 .52 .19 .83 .25 37 62
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 was a single disposal of an investment in a subsidiary that resulted in a loss of control
□Yes□No
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:
Increase in scope of combination
Time and place of gaining Contribution ContributiName Way to gain equity equity amount onproportion
Shenzhen Shenwu Elevator Co. Ltd. Business combination undercommon control 31 January 2022 3500000 100%
Shenzhen Shenfang Property Cleaning Business combination under
Co. Ltd. common control 31 January 2022 100%
Shenzhen Wuhe Urban Renewal Co. Ltd. Newly-establishedsubsidiary 25 February 2022 195000000 100%
Shenzhen Fubao Urban Resources Business combination under
Management Co. Ltd. common control 28 February 2022 3000000 60%
Yangzhou Wuhe Real Estate Co. Ltd. Newly-establishedsubsidiary 17 March 2022 33500000 67%
Shzhen Tonglu Wuhe Investment Newly-established
Development Co. Ltd. subsidiary 2 April 2022 10000000 100%
Shenzhen International Trade Industry Newly-established
Space Service Co. Ltd. subsidiary 27 April 2022 1540000 55%
6. Other
IX. Equity in Other Entities
1. Equity in Subsidiaries
(1) Compositions of the Group
Shareholding percentage (%)
Name of subsidiaries Main Place of Business nature Way of
operating registratio Directly Indirectly gaining
196ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
place n
Shenzhen Huangcheng Real Estate Co. Ltd. Shenzhen Shenzhen Real estate 100.00% Set-up
Shenzhen Wuhe Industry Investment
Development Co. Ltd. Shenzhen Shenzhen Real estate 100.00% Set-up
Software and Business
Shenzhen Facility Management Community information combination
Technology Co. Ltd. Shenzhen Shenzhen technology 35.00% not under the
services same control
Software and Business
Beijing Facility Home Technology Co. Ltd. Beijing Beijing informationtechnology 17.85%
combination
not under the
services same control
SZPRD Xuzhou Dapeng Real Estate
Development Co. Ltd. Xuzhou Xuzhou Real estate 100.00% Set-up
Dongguan ITC Changsheng Real Estate
Development Co. Ltd. Dongguan Dongguan Real estate 100.00% Set-up
SZPRD Yangzhou Real Estate Development
Co. Ltd. Yangzhou Yangzhou Real estate 100.00% Set-up
Shenzhen International Trade Center Property
Management Co. Ltd. Shenzhen Shenzhen Real estate 100.00% Set-up
Shenzhen Guomaomei Life Service Co. Ltd. Shenzhen Shenzhen Real estate 100.00% Set-up
Shandong Shenguomao Real Estate
Management Co. Ltd. Jinan Jinan Real estate 100.00% Set-up
Chongqing Shenguomao Real Estate Chongqin Chongqin
Management Co. Ltd. g g Real estate 100.00% Set-up
Chongqing Aobo Elevator Co. Ltd. Chongqin Chongqing g Service industry 100.00% Set-up
Chongqing Tianque Elevator Technology Co.Ltd. Shenzhen Shenzhen Service industry 100.00% Set-up
Shenzhen Guoguan Electromechanical Device
Co. Ltd. Shenzhen Shenzhen Service industry 100.00% Set-up
Shenzhen Guomao Catering Co. Ltd. Shenzhen Shenzhen Accommodationand catering 100.00% Set-up
Shenzhen Property Engineering and
Construction Supervision Co. Ltd. Shenzhen Shenzhen Service industry 100.00% Set-up
SZPRD Commercial Operation Co. Ltd. Shenzhen Shenzhen Service industry 100.00% Set-up
SZPRD Zhanjiang Branch Zhanjiang ZhanjiangCity City Real estate 100.00% Set-up
Shum Yip Properties Development Co. Ltd. Hong HongKong Kong Real estate 100.00% Set-up
Wayhang Development Co. Ltd. Hong HongKong Kong Real estate 100.00% Set-up
Chief Link Properties Co. Ltd. Hong HongKong Kong Real estate 70.00% Set-up
Business
Syndis Investment Co. Ltd. Hong Hong combinationKong Kong Real estate 70.00% not under the
same control
Yangzhou Shouxihu Jingyue Property
Development Co. Ltd. Yangzhou Yangzhou Real estate 51.00% Set-up
Shandong International Trade Center Hotel
Management Co. Ltd. Jinan Jinan Real estate 100.00% Set-up
Shenzhen Shenshan Special Cooperation Zone
Guomao Property Development Co. Ltd. Shenzhen Shenzhen Real estate 65.00% Set-up
197ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Shenzhen Guomao Tongle Property
Management Co. Ltd. Shenzhen Shenzhen Real estate 51.00% Set-up
Business
Shenzhen Rongyao Real Estate Development combination
Co. Ltd. Shenzhen Shenzhen Real estate 69.00% not under the
same control
Business
Shenzhen ITC Technology Park Service Co. combination
Ltd. Shenzhen Shenzhen Real estate 100.00% under the
same control
Business
Shenzhen Julian Human Resources
Development Co. Ltd. Shenzhen Shenzhen Service industry 100.00%
combination
under the
same control
Business
Shenzhen Huazhengpeng Property Shenzhen Shenzhen Real estate 100.00% combinationManagement Development Co. Ltd. under the
same control
Business
SZPRD Urban Renewal Co. Ltd. Shenzhen Shenzhen Real estate 100.00% combinationunder the
same control
Business
Shenzhen Penghongyuan Industrial
Development Co. Ltd. Shenzhen Shenzhen
Accommodation combination
and catering 100.00% under the
same control
Business
Shenzhen Jinhailian Property Management Shenzhen Shenzhen Real estate 100.00% combinationCo. Ltd. under the
same control
Business
Shenzhen Social Welfare Co. Ltd. Shenzhen Shenzhen Sanitation andsocial work 100.00%
combination
under the
same control
Business
Shenzhen Fuyuanmin Property Management
Limited Liability Company Shenzhen Shenzhen Real estate 100.00%
combination
under the
same control
Business
Shenzhen Meilong Industrial Development
Co. Ltd. Shenzhen Shenzhen Service industry 100.00%
combination
under the
same control
Public facilities Business
Shenzhen Guomao Shenlv Garden Co. Ltd. Shenzhen Shenzhen management 90.00% combination
services under thesame control
Business
Shenzhen Jiayuan Property Management Co.Ltd. Shenzhen Shenzhen Real estate 54.00%
combination
under the
same control
Business
Shenzhen Helinhua Construction Management
Co. Ltd. Shenzhen Shenzhen Real estate 90.00%
combination
under the
same control
Business
Shenzhen Zhongtongda House Xiushan
Service Co. Ltd. Shenzhen Shenzhen
Construction
industry 90.00%
combination
under the
same control
Business
Shenzhen Kangping Industrial Co. Ltd. Shenzhen Shenzhen Retail trade 90.00% combination
under the
198ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
same control
Business
Shenzhen Sports Service Co. Ltd. Shenzhen Shenzhen Manufacturing combinationindustry 100.00% under the
same control
Business
Shenzhen Teacher’s Home Training Co. Ltd. Shenzhen Shenzhen Retail trade 100.00% combinationunder the
same control
Business
Shenzhen Education Industrial Co. Ltd. Shenzhen Shenzhen Service industry 100.00% combinationunder the
same control
Business
Shenzhen Yufa Industrial Co. Ltd. Shenzhen Shenzhen Retail trade 80.95% combinationunder the
same control
SZPRD Fuyuantai Development Co. Ltd. Shenzhen Shenzhen Real estate 100.00% Set-up
Xiamen Shenguomao Industrial City Smart
Service Co. Ltd. Shenzhen Xiamen Service industry 51.00% Set-up
Vietnam Shenguomao Property Management
Co. Ltd. Shenzhen Shenzhen Service industry 100.00% Set-up
Shenzhen SZPRD Yanzihu Development Co.Ltd. Shenzhen Shenzhen Real estate 100.00% Set-up
Shenzhen Guangming Wuhe Real Estate Co.Ltd. Shenzhen Shenzhen Real estate 100.00% Set-up
Dongguan Wuhe Real Estate Co. Ltd. Shenzhen Dongguan Real estate 100.00% Set-up
Business
Shenzhen Property Management Co. Ltd. Shenzhen Shenzhen Real estate 100.00% combinationunder the
same control
Business
Shenzhen Shenwu Elevator Co. Ltd. Shenzhen Shenzhen Real estate 100.00% combinationunder the
same control
Business
Shenzhen Shenfang Property Cleaning Co.Ltd. Shenzhen Shenzhen Real estate 100.00%
combination
under the
same control
Business
Shenzhen Foreign Trade Property combination
Management Co. Ltd. Shenzhen Shenzhen Real estate 100.00% under the
same control
Business
Shenzhen Shenfubao Property Development combination
Co. Ltd. Shenzhen Shenzhen Real estate 100.00% under the
same control
Business
Shenzhen Fubao Urban Resources combination
Management Co. Ltd. Shenzhen Shenzhen Real estate 60.00% under the
same control
Business
Shenzhen Shenfubao Hydropower Municipal combination
Service Co. Ltd. Shenzhen Shenzhen Real estate 100.00% under the
same control
Shenzhen Free Trade Zone Security Service Business
Co. Ltd. Shenzhen Shenzhen Real estate 100.00% combination
under the
199ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
same control
Shenzhen Wuhe Urban Renewal Co. Ltd. Shenzhen Shenzhen Real estate 100.00% Set-up
Yangzhou Wuhe Real Estate Co. Ltd. Yangzhou Yangzhou Real estate 67.00% Set-up
Shzhen Tonglu Wuhe Investment
Development Co. Ltd. Shenzhen Shenzhen Real estate 100.00% Set-up
Shenzhen International Trade Industry Space
Service Co. Ltd. Shenzhen Shenzhen Real estate 55.00% Set-up
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:
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
The profit or loss Declaring dividends
Shareholding attributable to the distributed to non- Balance of non-
Name of subsidiaries proportion of non- non-controlling controlling interests controlling
controlling interests interests for the for the current interests at the
current period period period-end
Shenzhen Rongyao Real Estate
Development Co. Ltd. 31.00% -12942884.64 4549221.78
Yangzhou Wuhe Real Estate Co. Ltd. 33.00% -921230.82 15578769.18
Yangzhou Shouxihu Jingyue Property
Development Co. Ltd. 49.00% 968766.90 6498415.70
Shenzhen Guomao Shenlv Garden
Co. Ltd. 10.00% 306914.34 3636840.35
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
200ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Ending balance Beginning balance
Name of
subsidiaries Current Non-current Current Non-current Total Current Non-current Current Non-current Total
assets assets Total assets liabilities liabilities liabilities assets assets Total assets liabilities liabilities liabilities
Shenzhen
Rongyao Real
Estate 546341 14896684 53600259 23768382 53600259 55977097 46509779 13757624 47885542 17307799 30013480 47321280
Development 7860.24 5.59 67.25 9.61 67.25 96.86 76.49 7.00 23.49 83.83 89.90 73.73
Co. Ltd.Yangzhou
Shouxihu
Jingyue 206208 957140.53 21578014. 8192080.8 123860.50 8315941.3 18565365. 1106169.8 19671535. 8205301.8 181236.45 8386538.2Property 73.64 17 1 1 94 9 83 2 7
Development
Co. Ltd.Shenzhen
Guomao 378728 687238.86 38560113. 31146187. 185261.19 31331448. 31903583. 778232.97 32681816. 28564967. 28564967.Shenlv Garden 74.87 73 72 91 82 79 87 87
Co. Ltd.Yangzhou
Wuhe Real 100311 923562.28 10040411 95683273 95683273Estate Co. 7568.27 30.55 9.09 9.09
Ltd.Unit: RMB
Amount for the current period Amount for the previous period
Name of
subsidiaries Operating
Total Cash flows Total Cash flows
revenue Net profit comprehensive from operating
Operating Net profit comprehensive from operating
income activities revenue income activities
Shenzhen
Rongyao Real
Estate -41751240.79 -41751240.79 -313044955.93 -69082966.63 -69082966.63
-
Development 219358760.50
Co. Ltd.Yangzhou
Shouxihu
Jingyue
Property 40252862.15 1977075.30 1977075.30 3007075.43 34266561.14 1451565.03 1451565.03 2330187.13
Development
Co. Ltd.Shenzhen
Guomao
Shenlv Garden 21954911.42 3111815.90 3111815.90 -472048.78 16814920.86 1411091.41 1411091.41 -181629.00
Co. Ltd.Yangzhou
Wuhe Real -2791608.54 -2791608.54 -716033.23
Estate Co. Ltd.Other notes:
(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
201ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
(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
Main (%) treatment of the
Name operating Place of Business nature investment to
place registration joint venture orDirectly Indirectly associated
enterprise
Shenzhen Real Estate Jifa Warehousing Warehouse
Co. Ltd. Shenzhen Shenzhen service 25.00% 25.00% Equity method
Tian’an International Building Property Property
Management Company of Shenzhen Shenzhen Shenzhen management 50.00% Equity method
CSCEC Intelligent Parking Technology
Co. Ltd. Shenzhen Shenzhen
Commercial
services 10.00% Equity method
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 6110801.95 58848700.91 77995898.01 57331775.19
Of which: Cash and
cash equivalents 4923260.32 37841255.88 9519579.27 36510372.60
Non-current assets 86342531.70 46757.57 12036801.70 64052.07
Total assets 92453333.65 58895458.48 90032699.71 57395827.26
202ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Current liabilities 2992163.07 28404537.12 2999369.48 27437899.29
Non-current liabilities 16415016.74 16269895.46
Total liabilities 2992163.07 44819553.86 2999369.48 43707794.75
Equity of non-
controlling interests
Equity attributable to
shareholders of the 89461170.58 14075904.62 87033330.23 13688032.51
Company as the parent
Net assets shares
calculated at the
shareholding 44730585.29 7037952.31 43516665.12 6844016.25
proportion
Adjusted items
- Goodwill
--Unrealized profit of
intra-company
transaction
--Other
Carrying value of
equity investment to 44730585.29 7037952.31 43516665.12 6844016.25
joint ventures
Fair values of equity
investments of joint
ventures with quoted
prices
Operating revenue 7991120.67 17348456.03 17198255.16 17937089.04
Financial expenses -10286.81 -369996.65 -18157.77 -524285.04
Income tax expense 810230.79 136495.54 2981339.69 128978.80
Net profit 2427840.35 387872.11 8925482.39 375438.76
Net profit from
discontinued
operations
Other comprehensive
income
Total comprehensive
income 2427840.35 387872.11 8925482.39 375438.76
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 235089462.02
Non-current assets 3014735.77
Total assets 238104197.79
Current liabilities 77308723.18
Non-current liabilities 24777.90
203ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Total liabilities 77333501.08
Equity of non-controlling interests
Equity attributable to shareholders of the
Company as the parent 160770696.71
Net assets shares calculated at the
shareholding proportion 16077069.67
Adjusted items
- Goodwill
--Unrealized profit of intra-company
transaction
--Other
Carrying value of investment to
associated enterprises 16077069.67
Fair value of equity investments in
associated enterprises with publicly
quoted prices
Operating revenue 169285776.61
Net profit 6326055.81
Net profit from discontinued operations
Other comprehensive income
Total comprehensive income 6326055.81
Dividends received from the associates
in the current period
Other notes:
(4) Summary Financial Information of Insignificant Joint Ventures or Associated Enterprises
Unit: RMB
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 accumulative
Name losses in previous the share of net profit) in unrecognized losses in current
accumulatively derecognized current period period
Other notes:
204ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
(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 Place of
Proportion/Share portion
place 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
X. Risks Associated with 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. Classification of financial instruments
1. The carrying value of financial assets on the balance sheet date
(1) 31 December 2022
Financial assets Financial assets at fair value
Financial assets at fair value
Item measured at and changes included in other Total
through profit or loss
amortized cost comprehensive income
Monetary capital 1517528893.83 1517528893.83
Notes receivable
Accounts receivable 419933915.30 419933915.30
Other receivables 639903523.33 639903523.33
Long-term receivables 22651454.07 22651454.07
205ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Financial assets Financial assets at fair value
Financial assets at fair value
Item measured at and changes included in other Total
through profit or loss
amortized cost comprehensive income
Other equity instrument
investments 887838.64 887838.64
(2) 31 December 2021
Financial assets Financial assets at fair value
Financial assets at fair value
Item measured at and changes included in other Total
through profit or loss
amortized cost comprehensive income
Monetary capital 2280821442.11 2280821442.11
Notes receivable 200000.00 200000.00
Accounts receivable 293985139.93 293985139.93
Other receivables 926361533.14 926361533.14
Long-term receivables 23831889.11 23831889.11
Other equity instrument
investments 1002551.95 1002551.95
2. The carrying value of financial liabilities on the balance sheet date
(1) 31 December 2022
Financial liabilities at fair Other financial
Item Total
value through profit or loss liabilities
Accounts payable 608283388.52 608283388.52
Other payables 1515085832.45 1515085832.45
Current portion of non-current liabilities 196645408.45 196645408.45
Long-term borrowings 3618782344.00 3618782344.00
(2) 31 December 2021
Financial liabilities at fair Other financial
Item Total
value through profit or loss liabilities
Accounts payable 351894812.23 351894812.23
Other payables 1027622090.94 1027622090.94
68984050.4768984050.47
Current portion of non-current liabilities
Long-term borrowings 3524500000.00 3524500000.00
ii. 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
206ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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-i VII-v VII-viii 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.
207ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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 at 31 December 2022 there were certain credit concentration risks
in the Company and 54.09% of the accounts receivable of the Company (54.61% on 31 December 2021) 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.iii. Liquidity risk
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.Financial liabilities classified by remaining maturity
Amount at the end of this current period
Item
Carrying value Undiscountedcontract amount Within 1 year 1-3 years Over 3 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 196645408.45 196645408.45 196645408.45
liabilities
Total 5938796973.42 6318849640.80 2498480993.10 3648297102.30 172071545.40
(Continued)
Amount at the beginning of this current period
Item
Carrying value Undiscountedcontract amount Within 1 year 1-3 years Over 3 years
Banking borrowings 3524500000.00 4196417741.29 186248876.28 3603862408.90 406306456.11
Accounts payable 351894812.23 351894812.23 351894812.23
Other payables 1027622090.94 1027622090.94 1010079414.96 17542675.98
Current portion of
other non-current 68984050.47 68984050.47 68984050.47
liabilities
Total 4973000953.64 5644918694.93 1617207153.94 3603862408.90 423849132.09
iv. 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
208ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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
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 at 31 December 2022 under the assumption of other fixed variables with 50 basis points changed in interest rate the bank loan
of RMB3809915668.00 (RMB3587800000.00 on 31 December 2021) 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.XI. 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
I. Consistent Fair Value
Measurement -- -- -- --
(III) Other equity instrument
investment 887838.64 887838.64
The total amount of assets
consistently measured at fair 887838.64 887838.64
value
II. Inconsistent Fair Value
Measurement -- -- -- --
2. Basis for Determining the Market Price of Continuous and Non-continuous Level 1 Fair Value
Measurement Items
The other equity instrument held by the Company was shares of listed companies whose fair value was
determined based on the closing price on the stock exchange as of 30 December 2022.
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
209ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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
XII. Related Party and Related-party Transactions
1. Information Related to the Company as the Parent of the Company
Proportion of share Proportion of
Name of the Place of held by the
voting rights
Company as the registration Business nature Registered capital Company as the
owned by the
parent parent against the Company as the
Company (%) parent against theCompany (%)
Shenzhen Limited liability
Investment Shenzhen company (solely- RMB30009
Holdings Co. Ltd. owned by the million
56.96%56.96%
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
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) During the Reporting Period 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
Refer to Note IX-1.
3. Information on the Joint Ventures and Associated Enterprises of the Company
Refer to Note IX-3.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:
210ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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
Shenzhen Shenfubao (Group) 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 Bay Area Urban Construction and Development Co. Wholly-owned subsidiary of the Company as the parent of the
Ltd. Company
Shenzhen Environmental Protection Technology Group Co.Ltd. Subsidiary of the Company as the parent of the 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 Bay Technology Development 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
Shenzhen Infinova Limited Subsidiary of the Company as the parent of the Company
Shenzhen Convention & Exhibition Center Management Co. Wholly-owned subsidiary of the Company as the parent of the
Ltd. Company
Shenzhen Sports Center Operation Management Co. Ltd. Wholly-owned subsidiary of the Company as the parent of theCompany
China Shenzhen Foreign Trade (Group) Corp. 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 Subsidiary of the Company as the parent of the Company
where the context otherwise requires
GUOREN PROPERTYAND CASUALTY INSURANCE CO.LTD. Subsidiary of the Company as the parent of the Company
Guosen Securities Co. Ltd. Subsidiary of the Company as the parent of the Company
Shenzhen Shentou Property Development Co. Ltd. Wholly-owned subsidiary of the Company as the parent of theCompany
Shenzhen General Institute of Architectural Design and Wholly-owned subsidiary of the Company as the parent of the
Research Co. Ltd. Company
Shenzhen Water Planning and Design Institute Co. Ltd. Subsidiary of the Company as the parent of the 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
Shenzhen Urban Construction Mingyuan Industrial Co. Ltd. Parent company’s grandson company
Shenzhen Fubao Industrial Park Operation 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 Shenfubao (Group) Tianjin Industrial Development Wholly-owned sub-subsidiary of the Company as the parent of
211ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Co. Ltd. the 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 Hi-tech Zone Development Construction Co. Ltd. Wholly-owned sub-subsidiary of the Company as the parent ofthe Company
Shenzhen Bay (Baoding) Innovation Development 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 Shenfubao (Group) Tianjin Investment Development Wholly-owned sub-subsidiary of the Company as the parent of
Co. Ltd. the 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
Shenzhen Infinova Smart Park Technology 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 Tianjun Industrial Co. Ltd. Parent company’s grandson company
Shenzhen Shendan Credit Enhancement Financing Guarantee
Co. Ltd. Parent company’s grandson company
Shenzhen Foreign Service Group 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 grandson company
Hebei Shenbao Investment Development Co. Ltd. Parent company’s grandson company
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 Infinova Renyong Information Co. Ltd. Wholly-owned sub-subsidiary of the Company as the parent ofthe Company
Shenzhen Total Logistics Service Co. Ltd. Parent company’s grandson company
Shenzhen SDG Service Co. Ltd. Parent company’s grandson company
Shenzhen Wancheng Logistics Co. Ltd. Parent company’s grandson company
Research Institute of Tsinghua University in Shenzhen Parent company’s 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
Shenzhen Bay
Technology Management
Development Co. service fee 86518273.32 81000000.00 Yes 79121747.44
Ltd.Shenzhen Tianjun Demolition
Industrial Co. Ltd. compensation 27000000.00 27000000.00 No
Shenzhen Foreign Outsourcing 9312805.11 - Yes
212ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Service Group Co. service charges
Ltd.Shenzhen General
Institute of Project
Architectural architectural 8161599.83 - Yes 4160439.35
Design and design service
Research Co. Ltd.ShenZhen Special
Economic Zone
Real Estate &
Properties (Group)
Co. Ltd. and its Managementservice fee 4026979.11 - Yes 3930479.73consolidated
subsidiaries except
where the context
otherwise requires
GUOREN
PROPERTYAND
CASUALTY Insurance 3296379.71 2178700.00 Yes 1726868.41
INSURANCE CO.LTD.Shenzhen Shendan
Credit Enhancement
Financing Guarantee ree 793950.00 - Yes
Guarantee Co. Ltd.Shenzhen SDG Property service
Service Co. Ltd. fee 465715.62 - Yes 244679.11
Shenzhen
Meibainian Garment Apparelprocurement 402743.64 - YesCo. Ltd.Shenzhen
Shenfubao (Group) Catering services 210975.00 - Yes 188791.00
Co. Ltd.Shenzhen Water
Planning and Design Consultant serviceexpense 113320.00 - YesInstitute Co. Ltd.Shenzhen Guarantee
Group Co. Ltd. Guarantee ree 26548.11 - Yes
Shenzhen Infinova Intelligent
Limited engineering - No 816303.96expense
Information of sales of goods and provision of labor service
Unit: RMB
Content of the
Related parties related-party Amount for the current period Amount for the previous
transaction period
Guoren Property and Casualty Insurance Property service
Co. Ltd. fee 365485.39 261696.11
Guosen Securities Co. Ltd. Property servicefee 1188060.37
Hebei Shenbao Investment Development
Co. Ltd. Project payment 20874664.05 10793087.64
Hebei Shenbao Investment Development Property service
Co. Ltd. fee 10585122.24 6826046.08
Shenzhen Shenyue United Investment Co. Property service
Ltd. fee 2429042.80 4426434.93
Shenzhen Guarantee Group Co. Ltd. Property servicefee 4347773.48 1641330.00
213ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Shenzhen Hi-tech Zone Development Property service
Construction Co. Ltd. fee 1844495.70 1592696.30
Shenzhen Convention & Exhibition Center Property service
Management Co. Ltd. fee 6587040.80 1778221.08
ShenZhen Special Economic Zone Real
Estate & Properties (Group) Co. Ltd. and Property service
its consolidated subsidiaries except where fee 12696424.71 10377456.79
the context otherwise requires
Shenzhen Total Logistics Service Co. Ltd. Property servicefee 2500524.01 669875.70
Shenzhen Shenzhen Hong Kong Science
and Technology Innovation Cooperation Property servicefee 1707998.32 431567.61Zone Development Co. Ltd.Shenzhen Shenzhen Hong Kong Science
and Technology Innovation Cooperation Supervisionservice fee 96688.44Zone Development Co. Ltd.Shenzhen Urban Construction Mingyuan
Industrial Co. Ltd. Project payment 564220.20
Shenzhen Large Industrial Zone (Shenzhen
Export Processing Zone) Development Project payment 4124594.71 5821041.28
Management Group Co. Ltd.Shenzhen Large Industrial Zone (Shenzhen
Export Processing Zone) Development Property servicefee 81796.64 137559.84Management Group Co. Ltd.Shenzhen Fubao Industrial Park Operation
Co. Ltd. Project payment 255834.10 852453.80
Shenzhen Fubao Industrial Park Operation Property service
Co. Ltd. fee 98543.56 119081.39
Shenzhen Environmental Protection
Technology Group Co. Ltd. Project payment 212270.67 737860.57
Shenzhen Environmental Protection Property service
Technology Group Co. Ltd. fee 6269868.04 5575777.64
Shenzhen Shenfubao (Group) Tianjin
Industrial Development Co. Ltd. Project payment 201939.74
Shenzhen Shenfubao (Group) Tianjin Property service
Industrial Development Co. Ltd. fee 1095907.44 1823813.14
Shenzhen Shenfubao (Group) Tianjin Property service
Investment Development Co. Ltd. fee 8068487.11 8678718.12
Shenzhen Shenfubao (Group) Co. Ltd. Project payment 1330275.23
Shenzhen Shenfubao (Group) Co. Ltd. Property servicefee 4785217.03 4760067.50
Funding
Shenzhen Shenfubao (Group) Co. Ltd. occupancy -233337.05 1053272.32
expense
Shenzhen Shenfubao Eastern Investment
Development Co. Ltd. Project payment 67252.15 380733.95
Shenzhen Shenfubao Eastern Investment Property service
Development Co. Ltd. fee 170701.27 635082.10
Shenzhen Shantou Special Cooperation
Zone Branch of Shenzhen Water Planning Property service 22050.00
and Design Institute Co. Ltd. fee
Shenzhen Sports Center Operation Property service
Management Co. Ltd. fee 687914.48
Shenzhen Investment Holdings Co. Ltd. Project payment 7209951.08 1267596.34
Shenzhen Investment Holdings Co. Ltd. Service expense 1886792.46 1980443.98
Shenzhen Investment Holdings Co. Ltd. Funding 174206.14 905992.47
214ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
occupancy
expense
Shenzhen Investment Holdings Co. Ltd. Property servicefee 7584483.75
Shenzhen Bay Area International Hotel Co. Property service
Ltd. fee 75100961.12
Shenzhen Bay Wanli Hotel Branch of
Shenzhen Wuzhou Hotel Management Co. Property servicefee 360707.44 298892.38Ltd.Shenzhen Bay Wanyi Hotel Branch of
Shenzhen Wuzhou Hotel Management Co. Property servicefee 235915.67 201669.81Ltd.Shenzhen SME Venture Capital Co. Ltd. Property servicefee 872990.19 1347253.40
Shenzhen Bay (Baoding) Innovation Property service
Development Co. Ltd. fee 354142.48 202133.32
Shenzhen Bay Technology Development Property service
Co. Ltd. fee 54562406.82 56337675.04
Shenzhen Bay Technology Development Consultant
Co. Ltd. service expense 541666.98
Shenzhen Bay Area Urban Construction and
Development Co. Ltd. Project payment 686767.33 744795.72
Shenzhen Bay Area Urban Construction and Property service
Development Co. Ltd. fee 2977659.03 2515433.40
Shenzhen Xiangmihu International
Exchange Center Development Co. Ltd. Project payment 1419537.05 67434.49
Shenzhen Xiangmihu International Property service
Exchange Center Development Co. Ltd. fee 2423260.33
Shenzhen Infinova Limited Property servicefee 289916.74 286508.61
Shenzhen Infinova Smart Park Technology Consultant
Co. Ltd. service expense 512000.00
China Shenzhen Foreign Trade (Group) Property service
Corp. Ltd. fee 2763006.30 1804718.93
China Shenzhen Foreign Trade (Group) Supervision
Corp. Ltd. service fee 618867.93
Shenzhen Tsinghua University Research Property service
Institute fee 351203.22 285775.44
Notes to acquisition of goods and reception of labor service
(2) Information on Related-party Trusteeship/Contract
Lists of trusteeship/contract of the Company:
Unit: RMB
Name of the Name of the Income
entruster/contract entrustee/ Type Start date Due date Pricing recognized in
ee contractor basis this currentperiod
Shenzhen ShenZhen
Shentou Property Properties & Investmen Market
Development Resources t 6 November 2019 5 November 2025 pricing 44057444.98
Co. Ltd. Development properties(Group) Ltd.Shenzhen Shenzhen Real
Shenfubao Shenfubao Estate 1 January 2021 31 December 2022
Market
pricing 1476804.42(Group) Co. Ltd. Property engineerin
215ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Development g
Co. Ltd.Shenzhen Fubao Shenzhen
Industrial Park Shenfubao Property
Operation Co. Property maintenan 1 January 2021 31 December 2022
Market
pricing 142317.25
Ltd. Development ce projectCo. Ltd.Shenzhen Shenzhen Free
Shenfubao Trade Zone Market
(Group) Co. Ltd. Security Service
Property 1 January 2021 31 December 2022 pricing 853210.46
Co. Ltd.Shenzhen
Shenzhen Shenfubao
Shenfubao Hydropower Property 1 January 2021 31 December 2022 Marketpricing 1238467.02(Group) Co. Ltd. Municipal
Service Co. Ltd.Notes:
Lists of entrust/contractee
Unit: RMB
Name of the Name of the Charge
entruster/contra entrustee/ Type Start date Due date Pricing basis recognized in
ctee 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 The lease income confirmedin the current period in the previous period
Shenzhen Bay Wanyi Hotel
Branch of Shenzhen Wuzhou Investment properties 1369729.39 504175.20
Hotel Management Co. Ltd.Shenzhen Bay Wanli Hotel
Branch of Shenzhen Wuzhou Investment properties 1891531.05 616214.13
Hotel Management Co. Ltd.The Company was lessee:
Unit: RMB
Rental expense of Variable lease payments
simplified short-term that are not covered in
leases and low-value the measurement of the Rent payable Interest expense on Added right-of-use
Category asset leases (if lease liabilities (if
lease liabilities borne assets
Name of lessor of leased applicable) applicable)
assets Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount
for the for the for the for the for the for the for the for the for the for the
current previous current previous current previous current previous current previous
period period period period period period period period period period
Shenzhen
Shentou
Property Investment 180130properties 796404.00 388326.60 139419.23 129955.05 614554.40Development 0.23
Co. Ltd.Shenzhen Hi- Investment 295875.tech Zone properties 519166.28 104160.00 50400.00 8533.45 6723.46
Development 35
216ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Construction
Co. Ltd.Shenzhen
Large
Industrial
Zone
(Shenzhen
Export Investment
Processing properties 3690.77
Zone)
Development
Management
Group Co.Ltd.ShenZhen
Special
Economic
Zone Real
Estate &
Properties
(Group) Co. Investment 1782328.Ltd. and its properties 640523.85 491428.54 55000.00 8020.54 10
consolidated
subsidiaries
except where
the context
otherwise
requires
Notes:
(4) Information on Related-party Guarantee
The Company was guarantor:
Unit: RMB
Secured party Amount of guarantee Start date End date Executionaccomplished or not
The Company was secured party
Unit: RMB
Guarantor: Amount of guarantee Start date End date Executionaccomplished or not
Guoren P&C 82093413.89 26 June 2022 30 April 2024 Not
Shenzhen Shendan
Zengxin Financing 16750000.00 29 March 2022 28 March 2025 Not
Guarantee Co. Ltd.Shenzhen Shendan
Zengxin Financing 36850000.00 29 March 2022 28 March 2026 Not
Guarantee Co. Ltd.Shenzhen Shendan
Zengxin Financing 13400000.00 29 March 2022 28 March 2027 Not
Guarantee Co. Ltd.Shenzhen Credit
Guarantee Group Co. 2895117.51 1 May 2022 1 May 2023 Not
Ltd.Notes:
(5) Information on Inter-bank Lending of Capital of Related Parties
Unit: RMB
Related parties Amount Start date Maturity date Note
217ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Borrowing
Lending
(6) Information on Assets Transfer and Debt Restructuring by Related Party
Unit: RMB
Related parties Content of the related- Amount for the current Amount for the previousparty transaction period period
Shenzhen Investment Holdings Co. Ltd. Transfer of fixedassets 171582.53
Shenzhen Shenfubao (Group) Co. Ltd. Acquisition of equityinterest 86923058.15
ShenZhen Special Economic Zone Real
Estate & Properties (Group) Co. Ltd. and Acquisition of equity
Shenzhen SPG Investment Co. Ltd. interest
206390636.61
China Shenzhen Foreign Trade (Group) Acquisition of equity
Corp. Ltd. 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 15149368.18 15959991.00
(8) Other Related-party Transactions
6. Accounts Receivable and Payable of Related Party
(1) Accounts Receivable
Unit: RMB
Ending balance Beginning balance
Project
name Related parties Carrying amount Bad debtprovision Carrying amount
Bad debt
provision
Accounts Hebei Shenbao Investment
receivable Development Co. Ltd. 15856697.13 475700.91 2906269.30 66647.54
Shenzhen Shenyue United
Investment Co. Ltd. 1545493.83 46364.81
Shenzhen Guarantee
Group Co. Ltd. 69764.97 2092.95 484328.21 14529.85
Shenzhen Hi-tech Zone
Development 3292961.84 177657.15 2038315.65 75908.99
Construction Co. Ltd.Shenzhen Convention &
Exhibition Center 1379512.79 55256.38 1170565.00 48987.95
Management Co. Ltd.ShenZhen Special
Economic Zone Real
Estate & Properties
(Group) Co. Ltd. and its 10072563.13 674112.86
consolidated subsidiaries
except where the context
otherwise requires
Shenzhen Total Logistics
Service Co. Ltd. 779745.46 23392.36 395202.42 11856.07
218ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Shenzhen Shenzhen Hong
Kong Science and
Technology Innovation 114435.00 3433.05 101072.00 3032.16
Cooperation Zone
Development Co. Ltd.Shenzhen Large Industrial
Zone (Shenzhen Export
Processing Zone)
Development 1811138.85 104774.17 52000.00
Management Group Co.Ltd.Shenzhen Fubao Industrial
Park Operation Co. Ltd. 307714.39 9231.43
Shenzhen Environmental
Protection Technology 1331881.42 39956.44 539992.41
Group Co. Ltd.Shenzhen Shenfubao
(Group) Tianjin Industrial 917263.67 66998.66 1000780.50
Development Co. Ltd.Shenzhen Shenfubao
(Group) Tianjin
Investment Development 2454324.58 88615.34 4700758.68
Co. Ltd.Shenzhen Shenfubao
(Group) Co. Ltd. 3699118.44 145973.55 1323864.34
Shenzhen Shenfubao
Eastern Investment 55.70 1.67
Development Co. Ltd.Shenzhen Shentou
Property Development 1500297.75 45008.93 3618388.27 108551.65
Co. Ltd.Shenzhen Investment
Holdings Co. Ltd. 6623892.25 218945.16 1876454.12 20087.62
Shenzhen Bay Area
International Hotel Co. 51312666.65 1539380.00
Ltd.Shenzhen Bay (Baoding)
Innovation Development 116061.39 3481.84 28814.40 864.43
Co. Ltd.Shenzhen Bay Technology
Development Co. Ltd. 131203332.93 3936099.99 112281758.95 3368452.77
Shenzhen Bay Area Urban
Construction and 1013741.87 2700.00
Development Co. Ltd.Shenzhen Xiangmihu
International Exchange
Center Development Co. 811111.70 24333.35
Ltd.Shenzhen Infinova Smart
Park Technology Co. Ltd. 320000.00 9600.00
Shenzhen Tsinghua
University Research 113107.19 3393.22 66034.33 1981.03
Institute
Total 235633141.06 7693804.22 133598340.45 3723600.06
Contractual Hebei Shenbao Investment
assets Development Co. Ltd. 373225.04
Shenzhen Large Industrial
Zone (Shenzhen Export 337422.67
219ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Processing Zone)
Development
Management Group Co.Ltd.Shenzhen Fubao Industrial
Park Operation Co. Ltd. 26457.15
Shenzhen Environmental
Protection Technology 28385.93
Group Co. Ltd.Shenzhen Shenfubao
(Group) Co. Ltd. 43500.00
Shenzhen Shenfubao
Eastern Investment 14649.15
Development Co. Ltd.Shenzhen Investment
Holdings Co. Ltd. 139004.56
Shenzhen Bay Area Urban
Construction and 50169.55
Development Co. Ltd.Shenzhen Xiangmihu
International Exchange
Center Development Co. 46418.86
Ltd.Total 1059232.91
Other non-
current Shenzhen Shenfubao
assets (Group) Co. Ltd.
42726200.00
Total 42726200.00
Other Shenzhen Hi-tech Zone
receivables Development 121714.92 5080.85 20420.00 612.60Construction Co. Ltd.ShenZhen Special
Economic Zone Real
Estate & Properties
(Group) Co. Ltd. and its 100000.00 10000.00 20822314.85
consolidated subsidiaries
except where the context
otherwise requires
Shenzhen Large Industrial
Zone (Shenzhen Export
Processing Zone)
Development 2583.54 77.51 3613.60
Management Group Co.Ltd.Shenzhen Fubao Industrial
Park Operation Co. Ltd. 11950.00
Shenzhen Qianhai
Advanced Information 10720575.27 321617.26 8430575.27 252917.26
Service Co. Ltd.Shenzhen Shenfubao
(Group) Co. Ltd. 59759134.93
Shenzhen Shenfubao
Eastern Investment 3533.26
Development Co. Ltd.Shenzhen Shentou
Property Development 81233.00 81233.00 81233.00 81233.00
Co. Ltd.Shenzhen Investment 685740.90 112893.70 12421260.83 46829.92
220ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Holdings Co. Ltd.Shenzhen Xinhai Holding
Co. Ltd. 201499990.18 6044999.71 401499990.18 6044999.71
Shenzhen Xinhai Rongyao
Real Estate Development 375068984.55 11252069.54 355026166.83 10650785.01
Co. Ltd.Shenzhen Tianjun
Industrial Co. Ltd. 10000000.00 10000000.00
Shenzhen Bay Technology
Development Co. Ltd. 4159687.50 124790.63 11809060.35 419496.75
Shenzhen Wufang
Ceramics Industrial Co. 1747264.25 1747264.25 1747264.25 1747264.25
Ltd.China Shenzhen Foreign
Trade (Group) Corp. Ltd. 3734.83 373.48 1410306.11
Shenzhen Wancheng
Logistics Co. Ltd. 8005.74
Total 604191508.94 19700399.93 883054829.20 19244138.50
Note 1: In January 2022 the Company completed the acquisition of equity interests in Shenzhen Property Management Co. Ltd.("Shenzhen Property") a subsidiary of ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. ("SPG "); in
February 2022 the Company completed the acquisition of equity interests in Shenzhen Free Trade Zone Security Service Co. Ltd.(“Security Company”) Shenzhen Shenfubao Property Development Co. Ltd. (“Shenfubao Property”) and Shenzhen Shenfubao
Hydropower Municipal Service Co. Ltd. (“Hydropower Company”) which are subsidiaries of Shenzhen Shenfubao (Group) Co.Ltd. (“Shenfubao Group”) and Shenzhen Foreign Trade Property Management Co. Ltd. (“Foreign Trade Property”) which is a
subsidiary of China Shenzhen Foreign Trade (Group) Corp. Ltd. According to the requirements of Shenzhen SASAC's Guidance
on Strengthening Bank Account Management and Comprehensive Supervision of Capital Risk Prevention of Municipal State-
owned Enterprises (SZASAC [2014] No. 79) SPG Shenfubao Group and Shenzhen Investment Holdings Co. Ltd. ("SIHC ")
centralized the management of some funds of their subsidiaries. Prior to the acquisition Shenzhen Property pooled and deposited
part of its funds with SPG; Shenfubao Property Hydropower Company and Security Company pooled and deposited part of their
funds with Shenfubao Group; and Foreign Trade Property pooled and deposited part of their funds with SIHC thus forming non-
operating fund transactions between the Company and SPG Shenfubao Group and SIHC. The non-operating capital transactions
with SPG Shenfubao Group and SIHC for historical reasons at the beginning of 2022 were RMB20722314.85
RMB56595413.13 and RMB12312112.39 respectively. As of 31 December 2022 the Company has settled the non-operating
capital transactions with SPG Shenfubao Group and SIHC and there is no situation of related parties occupying the Company's
funds.Note 2: 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 Bangling 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.
(2) Accounts Payable
Unit: RMB
Project
name Related parties Ending carrying amount Beginning carrying amount
Accounts
payable Shenzhen Shentou Property Development Co. Ltd. 787002.77 887042.50
Shenzhen Infinova Renyong Information Co. Ltd. 25203.84
221ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Shenzhen Hi-tech Zone Development Construction
Co. Ltd. 252198.81
Shenzhen General Institute of Architectural Design
and Research Co. Ltd. 1199653.20 1666199.82
Shenzhen SDG Service Co. Ltd. 282144.00 17000.00
Total 2294003.81 2822441.13
Other
payables Shenzhen Guarantee Group Co. Ltd. 1494841.29 396462.16
Shenzhen Free Trade Zone Life Service Co. Ltd. 4850.00 4850.00
Shenzhen Fubao Industrial Park Operation Co.Ltd. 11579.00 250890.00
Shenzhen Shenfubao (Group) Co. Ltd. 2503870.62 146410.00
Shenzhen Shentou Property Development Co. Ltd. 10126517.16 10874467.40
Shenzhen Bay Wanli Hotel Branch of Shenzhen
Wuzhou Hotel Management Co. Ltd. 687525.00 654786.00
Shenzhen Bay Wanyi Hotel Branch of Shenzhen
Wuzhou Hotel Management Co. Ltd. 562521.00 535734.00
Shenzhen SME Venture Capital Co. Ltd. 339760.59 339760.58
Shenzhen Bay Technology Development Co. Ltd. 179966045.36 90354189.38
Shenzhen Bay Area Urban Construction and
Development Co. Ltd. 360752.18 360752.18
Shenzhen Infinova Limited 144219.02 144219.02
China Shenzhen Foreign Trade (Group) Corp. Ltd. 265018.43
Shenzhen Real Estate Jifa Warehousing Co. Ltd. 42296665.14 38796665.14
Tian’an International Building Property
Management Company of Shenzhen 5214345.90 5214345.90
Shenzhen Investment Holdings Co. Ltd. 868934.14 769277.91
Guosen Securities Co. Ltd. 228813.86
Shenzhen Foreign Service Group Co. Ltd. 1101949.83
Yangzhou Lvfa Real Estate Co. Ltd. 313705372.89
Total 559654767.55 149071623.53
7. Commitments of Related Party
8. Other
XIII. Stock 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
222ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
4. Modification and Termination of Share-based Payments
5. Others
XIV. 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 2661507526.23 136224550.92
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 amounting to
RMB93.81 million from Jiyong Company in full in past years for the transfer of Jiabin Building. On 31 October 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 29 April 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.
(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. for Software Park I
In March 2021 the ITC Technology Park Company received arbitration notices respectively of the case [2021]
Shenguozhongshou [2021] Shenguozhongshou No. 1063. The Fourth Owners’ Committee of Shenzhen Nanshan District Software
Park applied for the following award: 1. Respondent shall return RMB9893677.82 and fund occupation fee of RMB3272665.99
(temporarily calculated from 1 July 2012 to 31 January 2021) totaling RMB13166343.81; 2. respondent shall bear the attorney’s
fee of RMB30000.00.On 21 August 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 5 September 2022 Jun & Partners responded to the Special Audit Report of Case No. 1063.As of 24 March 2023 Case No. 1063 is awaiting the outcome of the determination.
(3) Litigation case about Shenzhen Basepoint Intelligent Co. Ltd.
On 20 August 2017 Shenzhen Facility Management Community Technology Co. Ltd. signed Software Service Contract on China
Merchants Property Intelligent Facility Management Platform with China Merchants. The company procured a RMB3 million
facility management system from Basepoint for the project. The Basepoint shall provide 31 projects but only 11 projects passed
the acceptance in the actual implementation. The Company considers that the facility management system provided by Basepoint
needs to meet the contract’s requirements and currently pays Basepoint only RMB60000. On 15 December 2021 Basepoint sued
Shenzhen Facility Management Community Technology Co. Ltd. for RMB500000 for the implementation costs related to the
cooperation project it had already incurred.
223ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
The first trial of the lawsuit has been concluded and the facility house was awarded RMB3 million to integrate the same amount
into the Basepoint. The Company appealed the result of the first trial for a second trial which has yet to be held. As expressed in
the legal opinion of Guangdong Sincere Partners & Attorneys on the second trial of the case the second trial of the case will
probably change the verdict reverse the ruling of the first trial on the payment of RMB3 million purchase cost and interest by the
facility home to the Basepoint or remand for retrial due to unclear facts and the need to find out the facts.
(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 Jinhailianand Shenzhen Xuansheng Industrial Development Co. Ltd. signed the Property Management Agreement of “Haiwai LianyiBuilding” which agreed that Xuansheng 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 pending the second trial.
(5) Others
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 2022 the balance of the deposit not
discharged with guarantee was RMB1131041.58 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
XV. Events after Balance Sheet Date
1. Significant Non-adjustment Matters
Unit: RMB
224ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Influence number to the
Item Contents financial position and Reason of inability to
operating results estimate influence number
2. Distribution of Profit
Unit: RMB
Profit or dividend to be distributed 215148452.21
Profit or dividend announced to issue after review and approval 215148452.21
3. Sales Return
4. Notes to Other Events after Balance Sheet Date
(I) Distribution of profit after the balance sheet date
On 24 March 2023 the 17th meeting of the 10th Board of Directors of the Company approved the profit distribution plan for 2022
as follows: a cash dividend of RMB3.61 (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 2022. The total cash dividends will be RMB215148452.21 and the remaining
undistributed profits will be carried forward to the next year. The plan will be implemented after approval by the Shareholders'
Meeting.(II) Matters on application for comprehensive credit line and financing line in 2023
On 24 March 2023 the 17th meeting of the 10th Board of Directors of the Company approved the Company's plan to apply for
comprehensive credit line and financing line. With the capital needs for production business operation and investment expansion
in 2023 the Company plans to apply for comprehensive credit financing line to various financial institutions by virtue of its own
land use rights buildings equipment inventory rights to earnings and pledge of accounts receivable. The total amount of the
above quota will not exceed RMB6.8 billion (including new extended and renewed loans) which shall be used for financing
businesses including but not limited to immediate fund loans project loans fixed asset loans annexation loans guarantee
financial leasing and financing after-sales repurchase. The actual credit and financing types amounts terms interest rates and fees
are ultimately subjected to the financing line actually approved by the financing institutions or subjected to the financing
agreements actually signed.XVI. Other Significant Events
1. The Accounting Errors Correction in Previous Period
(1) Retrospective Restatement
Unit: RMB
Name of the influenced report
Content Processing program items during comparison Accumulative impact
period
(2) Prospective Application
Content Processing program Reason for adopting prospectiveapplication
2. Debt Restructuring
225ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
3. Assets Replacement
(1) Non-monetary Assets Exchange
(2) Other Assets Replacement
4. Pension Plans
5. Discontinued Operations
Unit: RMB
Profit from
discontinued
Income tax operationsItem Revenue Costs Total profit expense Net profit attributable toowners of the
Company as the
parent
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 catering 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
Offset
Item Real estate Property management Leasing business among Total
segment
Operating revenue 1913674526.31 1666961878.32 128032642.22 3708669046.85
Operating cost 433443568.87 1441477771.44 103856280.91 1978777621.22
Total assets 13547537679.90 1749638234.25 503111696.25 15800287610.40
Total liabilities 9731844737.86 1389199802.72 210431999.39 11331476539.97
(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
226ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
XVII. Notes of Main Items in the Financial Statements of the Company as the Parent
1. Accounts Receivable
(1) Listed by Category
Unit: RMB
Ending balance Beginning balance
Category Carrying amount Bad debt provision Carrying amount Bad debt provisionCarrying Carrying
Amount Proportion Amount Withdrawal valueproportion Amount Proportion Amount
Withdrawal value
proportion
Accounts
receivable
withdrawal
of Bad debt 96702269. 94.67% 96702269.40 40 100.00% 0.00
96702269.
4097.65%
96702269.
40 100.00% 0.00provision
separately
accrued
Of which:
Accounts
receivable
withdrawal 5447776.9 5.33% 310734.28 5.70% 5137042.7 2324735.4 2.35% 100760.83 4.33% 2223974.6of bad debt 9 1 9 6
provision of
by group
Of which:
Total 102150046 100.00% 97013003. 94.97% 5137042.7 99027004..39 68 1 89 100.00%
96803030.
2397.75%
2223974.6
6
Bad debt provision separately accrued: RMB96702269.40
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawalproportion Reason for withdraw
Shenzhen Jiyong Properties &
Resources Development 93811328.05 93811328.05 100.00% Involved in lawsuit and
Company unrecoverable
Shenzhen Tewei Industry Co. 2836561.00 2836561.00 100.00% Long aging and expectedLtd. unrecoverable
Luohu District Economic Long aging and expected
Development Company 54380.35 54380.35 100.00% unrecoverable
Total 96702269.40 96702269.40
Bad debt provision accrued by item:
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion Reason for withdraw
Bad debt provision accrued by item:
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion Reason for withdraw
Withdrawal of bad debt provision by group: RMB310734.28
Unit: RMB
227ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Portfolio of credit risk
features 5447776.99 310734.28 5.70%
Total 5447776.99 310734.28
Notes to the determination basis for the group:
Withdrawal of bad debt provision by group: RMB310734.28
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Within 1 year (including 1
year) 4013380.50 120401.42 3.00%
1-2 years (including 2 years) 1312285.45 131228.55 10.00%
2-3 years (including 3 years) 9756.09 2926.83 30.00%
3-4 years (including 4 years) 112354.95 56177.48 50.00%
Total 5447776.99 310734.28
Notes to the determination basis for the group:
Please refer to the relevant information of disclosure of bad debt provision of other accounts receivable if adopting the general
mode of expected credit loss to withdraw bad debt provision of accounts receivable.□Applicable□Not applicable
Disclosure by aging
Unit: RMB
Aging Carrying amount
Within 1 year (including 1 year) 4013380.50
1 to 2 years 1312285.45
2 to 3 years 9756.09
Over 3 years 96814624.35
3 to 4 years 112354.95
Over 5 years 96702269.40
Total 102150046.39
(2) Bad Debt Provision Withdrawal Reversed or Recovered in the Current Period
Withdrawal of bad debt provision:
Unit: RMB
Changes in the current period
Category Beginningbalance Reversed or Ending balanceWithdrawal recovered Verification Others
Bad debt
provision 96702269.40 96702269.40
accrued by item
Withdrawal of
bad debt
provision by 100760.83 209973.45 310734.28
group
228ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Total 96803030.23 209973.45 97013003.68
Of which significant amount of recovered or transferred-back bad debt provision for the current period:
Unit: RMB
Name of the entity Amount reversed or recovered Way of recovery
(3) Accounts Receivable Written-off in Current Period
Unit: RMB
Item Written-off amount
Of which the verification of significant accounts receivable:
Unit: RMB
Written-off Reason for Verification Whether occurredName of the entity Nature amount verification procedures because of related-performed party transactions
Notes to verification of accounts receivable:
(4) Top 5 of the Ending Balance of the Accounts Receivable Collected according to Arrears Party
Unit: RMB
Name of the entity Ending balance Proportion to total ending balance of Ending balance ofaccounts receivable bad debt provision
Shenzhen Jiyong Properties &
Resources Development 93811328.05 91.84% 93811328.05
Company
Shenzhen Tewei Industry Co.Ltd. 2836561.00 2.78% 2836561.00
Shenzhen Investment Holdings
Co. Ltd. 2000000.00 1.96% 60000.00
Shenzhen Feihuang Industrial
Co. Ltd. 769919.05 0.75% 76991.91
Shenzhen Meige Xiazi Catering
Management Co. Ltd. 542366.40 0.53% 54236.64
Total 99960174.50 97.86%
(5) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement
of Accounts Receivable
Other notes:
(6) Accounts Receivable Derecognized due to the Transfer of Financial Assets
2. Other Receivables
Unit: RMB
Item Ending balance Beginning balance
Dividend receivable 151433108.41
Other receivables 5010963761.04 2412506681.28
Total 5162396869.45 2412506681.28
229ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
(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) Withdrawal of Bad Debt Provision
□Applicable□Not applicable
(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) Withdrawal of Bad Debt Provision
□Applicable□Not applicable
Other notes:
(3) Other Receivables
1) Category of Other Receivables by Account Nature
Unit: RMB
Nature Ending carrying amount Beginning carrying amount
Guaranteed deposit 2537789.00 2328581.00
Payment on behalf
External intercourse funds 23374171.34 56305486.73
Intercourse funds to subsidiary 5017542623.59 2386210528.77
Total 5043454583.93 2444844596.50
2) Withdrawal of Bad Debt Provision
Unit: RMB
First stage Second stage Third stage
Bad debt provision Expected credit loss Expected loss in the Expected loss in the Total
in the next 12 duration (credit duration (credit
months impairment not impairment
230ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
occurred) occurred)
Balance of 1 January 2022 8844588.14 23493327.08 32337915.22
Balance of 1 January 2022 in
the current period
Withdrawal of the current period 152907.67 152907.67
Balance as at 31 December 2022 8997495.81 23493327.08 32490822.89
Changes of carrying amount with significant amount changed of loss provision in the current period
□Applicable□Not applicable
Disclosure by aging
Unit: RMB
Aging Carrying amount
Within 1 year (including 1 year) 5011106446.45
1 to 2 years 51049.05
2 to 3 years 69600.00
Over 3 years 32227488.43
4 to 5 years 50000.00
Over 5 years 32177488.43
Total 5043454583.93
3) Bad Debt Provision Withdrawn Reversed or Recovered in the Current Period
Withdrawal of bad debt provision:
Unit: RMB
Changes in the current period
Category Beginningbalance Reversed or Ending balanceWithdrawal recovered Verification Others
Other
receivables 32337915.22 152907.67 32490822.89
Total 32337915.22 152907.67 32490822.89
Of which the bad debt provision recovered or transferred-back with significant amount during the current period:
Unit: RMB
Name of the entity Amount reversed or recovered Way of recovery
4) 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
Written-off Reason for Verification Whether occurredName of the entity Nature amount verification procedures because of related-performed party transactions
Notes to the verification of other receivables:
5) Top 5 of the Ending Balance of Other Receivables Collected according to the Arrears Party
Unit: RMB
231ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Proportion
to total
ending Ending
Name of the entity Nature Ending balance Aging balance of balance of
other bad debt
receivable provision
s %
Dongguan Wuhe Real Estate Co. Intercourse funds to 2113760170.00 Within 1Ltd. subsidiary year 41.91%
Shenzhen Guangming Wuhe Real Intercourse funds to Within 1
Estate Co. Ltd. subsidiary 1621000000.00 year 32.14%
Yangzhou Wuhe Real Estate Co. Intercourse funds to 640578418.90 Within 1Ltd. subsidiary year 12.70%
Shenzhen Huangcheng Real Estate Intercourse funds to Within 1
Co. Ltd. subsidiary 460533918.98 year 9.13%
Shum Yip Properties Development Intercourse funds to 109666108.82 Over 5Co. Ltd. subsidiary years 2.17% 7110900.41
Total 4945538616.70 98.05% 7110900.41
6) Accounts Receivable Involving Government Subsidies
Unit: RMB
Name of the entity Project of governmentsubsidies Ending balance Ending aging
Estimated recovering
time amount and basis
7) Derecognition of Other Receivables due to the Transfer of Financial Assets
8) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement of Other
Receivables
Other notes:
3. Long-term Equity Investment
Unit: RMB
Ending balance Beginning balance
Item Carrying Impairment Carrying Impairment
amount provision Carrying value amount provision Carrying value
Investment to 1436329880.subsidiaries 39 68364000.00
1367965880.1127829880.68364000.001059465880.393939
Investment to
joint ventures
and associated 98765051.45 18983614.14 79781437.31 69344295.51 18983614.14 50360681.37
enterprises
Total 1535094931. 87347614.14 1447747317. 1197174175.84 70 90 87347614.14
1109826561.
76
(1) Investment to Subsidiaries
Unit: RMB
Increase/decrease for the current period
Beginning
Investee balance (carrying Ending balance Ending balance ofAdditional Reduced Withdrawal of
value) investment investment impairment Others
(Carrying value) depreciation reserve
provision
Shenzhen Huangcheng Real 35552671.93 35552671.93
232ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Estate Co. Ltd.Shenzhen Wuhe Industry
Investment Development Co. 44950000.00 44950000.00
Ltd.SZPRD Yangzhou Real Estate
Development Co. Ltd. 50000000.00 50000000.00
Dongguan ITC Changsheng
Real Estate Development Co. 20000000.00 20000000.00
Ltd.Shenzhen International Trade
Center Property Management 195337851.23 195337851.23
Co. Ltd.Shenzhen Property Engineering
and Construction Supervision 3000000.00 3000000.00
Co. Ltd.SZPRD Commercial Operation
Co. Ltd. 63509120.32 63509120.32
Zhanjiang Shenzhen Real Estate
Development Co. Ltd. 2530000.00
Shum Yip Properties
Development Co. Ltd. 15834000.00
SZPRD Xuzhou Dapeng Real
Estate Development Co. Ltd. 50000000.00
Shenzhen Rongyao Real Estate
Development Co. Ltd. 508000000.00 508000000.00
Shenzhen ITC Technology Park
Service Co. Ltd.SZPRD Urban Renewal Co.Ltd. 119116236.91 41641757.62 77474479.29
Dongguan Wuhe Real Estate
Co. Ltd. 20000000.00 30000000.00 50000000.00
Shenzhen Guangming Wuhe
Real Estate Co. Ltd. 50000000.00 50000000.00
Shenzhen Wuhe Urban Renewal
Co. Ltd. 236641757.62 236641757.62
Yangzhou Wuhe Real Estate
Co. Ltd. 33500000.00 33500000.00
Total 1059465880.39 350141757.62 41641757.62 0.00 0.00 1367965880.39 68364000.00
(2) Investment to Joint Ventures and Associated Enterprises
Unit: RMB
Increase/decrease for the current period
Beginning balance Gains and losses Adjustment Cash bonus or Withdrawal
Ending balance
Investee Ending balance(carrying value) Additional Reduced recognized under the of other Changes of profits of Others (Carrying value)
of depreciation
investment investment equity method comprehensi other equity announced to impairment
reserve
ve income issue provision
I. Joint ventures
Shenzhen Real
Estate Jifa
Warehousing Co. 43516665.12 1213920.18 44730585.30
Ltd.Tian’an
International
Building Property
Management 6844016.25 193936.05 7037952.30
Company of
Shenzhen
Subtotal 50360681.37 1407856.23 51768537.60
II. Associated enterprises
Shenzhen
Wufang Ceramics
Industrial Co. 18983614.14
Ltd.CSCEC
Intelligent 27380294.
13 632605.58 28012899.71Parking
Technology Co.
233ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Ltd.Subtotal 27380294.13 632605.58 28012899.71 18983614.14
Total 50360681.37 27380294.13 2040461.81 79781437.31 18983614.14
(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 56064949.33 43679264.65 61784858.02 37251974.27
Others 19421465.41 1319976.00 18744743.91 1319976.00
Total 75486414.74 44999240.65 80529601.93 38571950.27
Relevant information of revenue:
Unit: RMB
Category of contracts Segment 1 Segment 2 Total
Product categories 75486414.74 75486414.74
Of which:
House leasing business 75486414.74 75486414.74
Classification by
operating region 75486414.74 75486414.74
Of which:
Shenzhen 75486414.74 75486414.74
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 75486414.74 75486414.74
Information about performance obligations:
The income of the parent company in current period was all income from leasing 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
234ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
was RMB840878470.63 at the period-end among which RMB840878470.63 was expected to be recognized in 2023.Other notes:
5. Investment Income
Unit: RMB
Item Amount for the current period Amount for the previous period
Long-term equity investment income
accounted by cost method 151433108.41
Long-term equity investment income
accounted by equity method 2040461.81 4650460.58
Entrusted loans interest 159934119.41 129717557.63
Total 313407689.63 134368018.21
6. Other
XVIII. Supplementary Materials
1. Items and Amounts of Non-recurring Profit or Loss
□Applicable □Not applicable
Unit: RMB
Item Amount Note
Gains/losses from the disposal of non- Mainly received compensation for land
current assets 175644543.02 resumption
Government grants recorded in the
current profit or loss (except for those
acquired in the ordinary course of
company’s business in line with national 10633227.34
policies and regulations or granted
continuously according to certain
standard quotas or amounts)
Dispossession surcharge to non-financial
institutions included in the current profit 132289.35
and loss
Net profit or loss for the period from the
beginning of the period to the date of
consolidation of a subsidiary arising 9596148.16
from a business combination under
common control
Gains and losses arising from
contingencies unrelated to the normal 70578.79
operation of the company’s business
Gain/loss from change of fair value of
trading financial assets and liabilities
and investment gains from disposal of
trading financial assets and liabilities as 1300.91
well as financial assets available for sale
other than valid hedging related to the
Company’s common businesses
Other non-operating income and expense
other than the above 2448235.99
Other profit and loss items in line with
the definition of non-recurring gains and 277896.27
losses
Less: Income tax effects 51525180.31
235ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Non-controlling interests effects 54953.47
Total 147224086.05 --
Details of other profit and loss items in line with the definition of non-recurring gains and losses:
□Applicable□Not applicable
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
Weighted average ROE EPSProfit as of reporting period (%) EPS-basic EPS-diluted
Net profit attributable to ordinary
shareholders of the Company 12.37% 0.9022 0.9022
Net profit attributable to ordinary
shareholders of the Company after
deduction of non-recurring profit or 9.01% 0.6551 0.6551
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
236
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