ShenZhen Properties & Resources Development (Group) Ltd. Third Quarterly Report 2023

Stock Code: 000011 200011 Stock Name: PRD PRD-B Announcement No. 2023-23

SHENZHEN PROPERTIES & RESOURCES DEVELOPMENT

(GROUP) LTD.THIRD QUARTERLY REPORT 2023

ShenZhen Properties & Resources Development (Group) Ltd. (hereinafter referred to as the

“Company”) and all the members of the Company’s Board of Directors hereby guarantee

that the contents of this Report are true accurate and complete and free of any

misrepresentations misleading statements or material omissions.Important Notes:

1. The Board of Directors the Supervisory Committee as well as the directors supervisors and senior management of the Company

hereby guarantee that the contents of this Report are true accurate and complete and free of any misrepresentations misleading

statements or material omissions and collectively and individually accept legal responsibility for such contents.

2. The Company’s legal representative head of financial affairs and head of the financial department (equivalent to financial

manager) hereby guarantee that the financial statements carried in this Report are true accurate and complete.

3. Indicate whether the financial statements in this Report have been audited by an independent auditor.

□Yes □ No

I Key Financial Information

(I) Key Accounting Data and Financial Indicators

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

Q3 2023 YoY change (%) Q1-Q3 2023 YoY change (%)

Operating revenue (RMB) 521861580.85 -54.70% 2427326213.70 -22.70%

Net profit attributable to the

listed company’s 10448055.65 -94.90% 231351500.28 -49.24%

shareholders (RMB)

Net profit attributable to the

listed company’s

shareholders before 11244393.64 -93.93% 232089104.78 -47.47%

exceptional gains and losses

(RMB)

Net cash generated

from/used in operating — — -939639052.92 -2237.74%

activities (RMB)

Basic earnings per share

0.0175-94.90%0.3882-49.23%

(RMB/share)

Diluted earnings per share

0.0175-94.90%0.3882-49.23%

(RMB/share)

1ShenZhen Properties & Resources Development (Group) Ltd. Third Quarterly Report 2023

Weighted average return on

0.24%-4.59%5.22%-5.13%

equity (%)

30 September 2023 31 December 2022 YoY change (%)

Total assets (RMB) 15583445761.13 15800287610.40 -1.37%

Equity attributable to the

listed company’s 4428522622.23 4412555547.97 0.36%

shareholders (RMB)

(II) Exceptional Gains and Losses

□ Applicable □ Not applicable

Unit: RMB

Item Q3 2023 Q1-Q3 2023 Note

Gain or loss on disposal of

Gain or loss on disposal

non-current assets (inclusive

618765.19 793144.88 generated from early

of impairment allowance

write-offs) termination of leased assets

Government grants through

profit or loss (exclusive of

government grants

continuously given in the

Company’s ordinary course of 124720.00 626378.00 One-time bounty received

business at fixed quotas or

amounts as per the

government’s policies and

standards)

Reversal of non-operating

income pre-recognized and

Non-operating income and

-2121078.39 -2683694.81 forfeited lease security due to

expense other than the above

early termination of leased

assets

Less: Income tax effects -320194.33 -288524.32

Non-controlling

-261060.88-238043.11

interests effects (net of tax)

Total -796337.99 -737604.50 --

Other items that meet the definition of exceptional gain/loss:

□Applicable □ Not applicable

No such cases in 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 in the Reporting Period.(III) Changes in Key Financial Statement Line Items and Explanation of why

□ Applicable □ Not applicable

Balance sheet line items 30 September 2023 1 January 2023 Change (%) Main reasons for the change

Prepayment for land was transferred to

Prepayments 14737756.37 100341806.56 -85.31%

development costs

Contract assets 110333894.82 1094632.90 9979.53% Operating revenue was recognized

Increased debit balance of reclassified tax

Other current assets 91791361.00 65655266.27 39.81%

payable

Long-term receivables 0.00 22651454.07 -100.00% Early termination of finance leases

2ShenZhen Properties & Resources Development (Group) Ltd. Third Quarterly Report 2023

Investments in other equity Changes in the fair value of investments in

601665.25887838.64-32.23%

instruments other equity instruments

Right-of-use assets 24940810.92 70168415.65 -64.46% Early termination of lease assets

Increased prepayments for the construction

Other non-current assets 6328448.11 2750873.08 130.05%

and acquisition of fixed assets

Short-term borrowings 90000000.00 0.00 100.00% Additional short-term borrowings

Accounts payable 414725550.43 608283388.52 -31.82% Decreased payables for engineering

Advances from customers 559960.43 2260847.31 -75.23% Decreased rental advances received

Contract liabilities 280893889.54 920828040.81 -69.50% Operating revenue was recognized

Operating revenue was recognized resulting

Other current liabilities 18580606.80 83991786.83 -77.88%

in decreased output-tax-to-be

Lease liabilities 14934418.01 77963283.55 -80.84% Early termination of lease assets

Provisions 0.00 766612.52 -100.00% Lawsuit-related payments

Income statemnet line items Q1~Q3 2023 Q1~Q3 2022 Change (%) Main reasons for the change

Higher provisions for land value added tax

Taxes and levies 87090867.91 686903783.64 -87.32%

in the same period of last year

Decreased monetary assets in the current

Interest income 11814704.84 17085421.82 -30.85%

period

Gain on changes in fair Purchase of held-for-trading financial assets

-117082.19-100.00%

value in the same period of last year

Increased return on joint venture

Return on investment 2711324.32 613652.55 341.83%

investments in the current period

Reversal of previously recognized non-

Non-operating income 907106.27 6728363.44 -86.52%

operating income in the current period

Lease deposits forfeited on early termination

Non-operating expense 3590801.08 2262117.07 58.74%

of lease assets in the current period

Income tax expense 85692317.44 165259517.59 -48.15% Decreased gross profit in the current period

Other comprehensive

income - Changes in the fair Changes in the fair value of investments in

-309668.96-108308.41-185.91%

value of investments in other other equity instruments

equity instruments

Other comprehensive

income - Differences arising

from the translation of

1890614.71 -810990.20 333.12% Exchange rate fluctuations

foreign currency-

denominated financial

statements

Cash flow statement line

Q1~Q3 2023 Q1~Q3 2022 Change (%) Main reasons for the change

items

Net cash generated

from/used in operating -939639052.92 -40194271.40 -2237.74% Decreased cash inflows in the current period

activities

Net cash generated

Payment for acquisition of equity interests

from/used in investing -5760386.52 -282571107.19 97.96%

in the same period of last year

activities

Net cash generated

from/used in financing 431226026.33 -273052032.11 257.93% Additional bank loan in the current period

activities

3ShenZhen Properties & Resources Development (Group) Ltd. Third Quarterly Report 2023

II Shareholder Information

(I) Numbers of Ordinary Shareholders and Preference Shareholders with Resumed Voting Rights as well

as Holdings of Top 10 Shareholders

Unit: share

Number of ordinary shareholders at the Number of preferred shareholders with resumed

421690

period-end voting rights at the period-end (if any)

Top 10 shareholders

Shareholdi Restricted

Nature of Total shares Shares in pledge marked or frozen

Name of shareholder ng shares

shareholder held

percentage held Status Shares

Shenzhen Investment State-owned

50.57%3014146373326

Holdings Corporation corporation

Domestic

Shenzhen State-Owned

non-state-

Equity Operation and 6.38% 38037890 0

owned legal

Management Co. Ltd.person

China Orient Asset State-owned

2.77%164914020

Management Co. Ltd. legal person

Hong Kong Securities Foreign legal

0.33%19827010

Clearing Company Ltd. person

Industrial and Commercial

Bank of China Limited－

Southern China Securities

Other 0.30% 1794934 0

Full Index Real Estate

Trading Open-ended Index

Securities Investment Fund

Domestic

Duan Shaoteng 0.29% 1760565 0

natural person

Domestic

Shenzhen Duty-Free

non-state-

Commodity Enterprises 0.29% 1730300 1730300

owned legal

Co. Ltd.person

Domestic

Yang Yaochu 0.28% 1690984 0

natural person

CITIC Securities Company State-owned

0.25%15163380

Limited corporation

Domestic

Li Xinyi 0.25% 1500000 0

natural person

Top 10 unrestricted shareholders

Shares by class and number

Name of shareholder Unrestricted shares held

Class Shares

RMB-

Shenzhen Investment Holdings Corporation 301411311 denominated 301411311

ordinary stock

RMB-

Shenzhen State-Owned Equity Operation and

38037890 denominated 38037890

Management Co. Ltd.ordinary stock

RMB-

China Orient Asset Management Co. Ltd. 16491402 denominated 16491402

ordinary stock

RMB-

Hong Kong Securities Clearing Company

1982701 denominated 1982701

Ltd.ordinary stock

Industrial and Commercial Bank of China 1794934 RMB- 1794934

4ShenZhen Properties & Resources Development (Group) Ltd. Third Quarterly Report 2023

Limited － Southern China Securities Full denominated

Index Real Estate Trading Open-ended Index ordinary stock

Securities Investment Fund

RMB-

Duan Shaoteng 1760565 denominated 1760565

ordinary stock

Domestically

Yang Yaochu 1690984 listed foreign 1690984

stock

RMB-

CITIC Securities Company Limited 1516338 denominated 1516338

ordinary stock

RMB-

Li Xinyi 1500000 denominated 1500000

ordinary stock

Domestically

Mai Furong 1244596 listed foreign 1244596

stock

The first largest shareholder Shenzhen Investment Holding

Corporation is the actual controlling shareholder of the Company

Related or acting-in-concert parties among the shareholders and Shenzhen State-Owned Equity Operation and Management

above Co. Ltd. And the Company does not know whether there are

related parties or acting-in-concert parties among the other 8

shareholders.Top 10 ordinary shareholders involved in securities margin

N/A

trading (if any)

(II) Number of Preference Shareholders and Shareholdings of Top 10 of Them

□Applicable □ Not applicable

III Other Significant Events

□Applicable □ Not applicable

IV Quarterly Financial Statements

(I) Financial Statements

1. Consolidated Balance Sheet

Prepared by ShenZhen Properties & Resources Development (Group) Ltd.Unit: RMB

Item 30 September 2023 1 January 2023

Current assets:

Monetary assets 1208459708.44 1517528893.83

Settlement reserve

Loans to other banks and financial

institutions

Held-for-trading financial assets

Derivative financial assets

Notes receivable

Accounts receivable 432960686.69 419933915.30

Receivables financing

5ShenZhen Properties & Resources Development (Group) Ltd. Third Quarterly Report 2023

Prepayments 14737756.37 100341806.56

Premiums receivable

Reinsurance receivables

Receivable reinsurance contract reserve

Other receivables 619208624.39 639903523.33

Including: Interest receivable 0.00 0.00

Dividends receivable 0.00 0.00

Financial assets purchased under resale

agreements

Inventories 11139345094.64 10975334223.37

Contract assets 110333894.82 1094632.90

Assets held for sale

Current portion of non-current assets

Other current assets 91791361.00 65655266.27

Total current assets 13616837126.35 13719792261.56

Non-current assets:

Loans and advances to customers

Debt investments

Other debt investments

Long-term receivables 0.00 22651454.07

Long-term equity investments 82429641.63 79781437.31

Investments in other equity

601665.25887838.64

instruments

Other non-current financial assets

Investment property 396403320.16 405762739.18

Fixed assets 69709976.69 82745172.12

Construction in progress

Productive living assets

Oil and gas assets

Right-of-use assets 24940810.92 70168415.65

Intangible assets 917941.72 1269382.91

Development costs

Goodwill 9446847.38 9446847.38

Long-term prepaid expense 18100297.95 21980602.46

Deferred income tax assets 1357729684.97 1383050586.04

Other non-current assets 6328448.11 2750873.08

Total non-current assets 1966608634.78 2080495348.84

Total assets 15583445761.13 15800287610.40

Current liabilities:

Short-term borrowings 90000000.00 0.00

Borrowings from the central bank

Loans from other banks and financial

institutions

Held-for-trading financial liabilities

Derivative financial liabilities

Notes payable

Accounts payable 414725550.43 608283388.52

6ShenZhen Properties & Resources Development (Group) Ltd. Third Quarterly Report 2023

Advances from customers 559960.43 2260847.31

Contract liabilities 280893889.54 920828040.81

Financial assets sold under repurchase

agreements

Customer deposits and deposits from

other banks and financial institutions

Payables for acting trading of securities

Payables for underwriting of securities

Employee benefits payable 191921069.09 239126392.02

Taxes and levies payable 3939529509.90 3917278346.81

Other payables 1473500394.31 1515085832.45

Including: Interest payable 0.00 0.00

Dividends payable 12202676.04 12202676.04

Fees and commissions payable

Reinsurance payables

Liabilities directly associated with

assets held for sale

Current portion of non-current liabilities 218229185.39 218858766.82

Other current liabilities 18580606.80 83991786.83

Total current liabilities 6627940165.89 7505713401.57

Non-current liabilities:

Insurance contract reserve

Long-term borrowings 4331879457.18 3618782344.00

Bonds payable

Including: Preference shares

Perpetual bonds

Lease liabilities 14934418.01 77963283.55

Long-term payables

Long-term employee benefits payable

Provisions 0.00 766612.52

Deferred income

Deferred income tax liabilities 174168.87 241978.54

Other non-current liabilities 128226648.86 128008919.79

Total non-current liabilities 4475214692.92 3825763138.40

Total liabilities 11103154858.81 11331476539.97

Owners’ equity:

Share capital 595979092.00 595979092.00

Other equity instruments

Including: Preference shares

Perpetual bonds

Capital reserves 80488045.38 80488045.38

Less: Treasury stock

Other comprehensive income -2273432.20 -3854377.95

Specific reserve

Surplus reserves 48886605.81 48886605.81

General reserve

Retained earnings 3705442311.24 3691056182.73

7ShenZhen Properties & Resources Development (Group) Ltd. Third Quarterly Report 2023

Total equity attributable to owners of the

4428522622.234412555547.97

Company as the parent

Non-controlling interests 51768280.09 56255522.46

Total owners’ equity 4480290902.32 4468811070.43

Total liabilities and owners’ equity 15583445761.13 15800287610.40

Legal representative: Liu Shengxiang Head of financial affairs: Cai Lili

Head of the financial department: Liu Qiang

2. Consolidated Income Statement for Q1~Q3

Unit: RMB

Item Q1~Q3 2023 Q1~Q3 2022

1. Revenues 2427326213.70 3140295994.52

Including: Operating revenue 2427326213.70 3140295994.52

Interest income

Insurance premium income

Fee and commission

income

2. Costs and expenses 2110887625.76 2533140929.95

Including: Cost of sales 1747100763.88 1571679030.25

Interest expense

Fee and commission

expense

Surrenders

Net insurance claims paid

Net amount provided as

insurance contract reserve

Expenditure on policy

dividends

Reinsurance premium

expense

Taxes and levies 87090867.91 686903783.64

Selling expense 25371890.23 22161928.56

Administrative expense 211898457.07 210271281.59

Development costs 3407038.92 4159726.32

Finance costs 36018607.75 37965179.59

Including: Interest

45973455.3254523243.45

expense

Interest income 11814704.84 17085421.82

Add: Other income 9328789.60 11919911.57

Return on investment (“-” for loss) 2711324.32 613652.55

Including: Share of profit or

2711324.32621145.49

loss of joint ventures and associates

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 (“-”

0.00117082.19

for loss)

Credit impairment loss (“-” for

-13788622.51-14254357.26

loss)

8ShenZhen Properties & Resources Development (Group) Ltd. Third Quarterly Report 2023

Asset impairment loss (“-” for

2045.93-753565.10

loss)

Asset disposal income (“-” for

793144.88-40143.31

loss)

3. Operating profit (“-” for loss) 315485270.16 604757645.21

Add: Non-operating income 907106.27 6728363.44

Less: Non-operating expense 3590801.08 2262117.07

4. Gross profit (“-” for loss) 312801575.35 609223891.58

Less: Income tax expense 85692317.44 165259517.59

5. Net profit (“-” for net loss) 227109257.91 443964373.99

5.1 By operating continuity

5.1.1 Net profit from continuing

227047902.08443964373.99

operations (“-” for net loss)

5.1.2 Net profit from discontinued

61355.830.00

operations (“-” for net loss)

5.2 By ownership

5.2.1 Net profit attributable to

shareholders of the Company as the 231351500.28 455745222.66

parent (“-” for net loss)

5.2.2 Net profit attributable to non-

-4242242.37-11780848.67

controlling interests (“-” for net loss)

6. Other comprehensive income net of

1580945.75-919298.61

tax

Attributable to owners of the

1580945.75-919298.61

Company as the parent

6.1 Items that will not be

-309668.96-108308.41

reclassified to profit or loss

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

-309668.96-108308.41

investments in other equity instruments

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

1890614.71-810990.20

profit or loss

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

other debt investments

6.2.3 Other comprehensive

income arising from the reclassification

of financial assets

6.2.4 Credit impairment

allowance for other debt investments

6.2.5 Reserve for cash flow

hedges

6.2.6 Differences arising from the

translation of foreign currency- 1890614.71 -810990.20

denominated financial statements

6.2.7 Other

Attributable to non-controlling

0.000.00

interests

7. Total comprehensive income 228690203.66 443045075.38

7.1 Attributable to owners of the

232932446.03454825924.05

Company as the parent

7.2 Attributable to non-controlling -4242242.37 -11780848.67

9ShenZhen Properties & Resources Development (Group) Ltd. Third Quarterly Report 2023

interests

8. Earnings per share

8.1 Basic earnings per share 0.3882 0.7647

8.2 Diluted earnings per share 0.3882 0.7647

Where business combinations under common control occurred in the current period the net profit achieved by the acquirees before

the combinations was RMB with the amount for the same period of last year being RMB .Legal representative: Liu Shengxiang Head of financial affairs: Cai Lili

Head of the financial department: Liu Qiang

3. Consolidated Cash Flow Statement for Q1~Q3

Unit: RMB

Item Q1~Q3 2023 Q1~Q3 2022

1. Cash flows from operating activities:

Proceeds from sale of commodities

1722297276.092452112485.68

and rendering of services

Net increase in customer deposits and

deposits from other banks and financial

institutions

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 fees and commissions received

Net increase in loans from other banks

and financial institutions

Net increase in proceeds from

repurchase transactions

Net proceeds from acting trading of

securities

Tax and levy rebates 14416704.33 10245107.61

Cash generated from other operating

240994365.071003380006.44

activities

Subtotal of cash generated from

1977708345.493465737599.73

operating activities

Payments for commodities and services 1746506968.56 2080004618.42

Net increase in loans and advances to

customers

Net increase in deposits in the central

bank and other banks and financial

institutions

Payments for claims on original

insurance contracts

Net increase in loans to other banks and

financial institutions

Interest fees and commissions paid

Policy dividends paid

Cash paid to and for employees 723393519.67 723775712.61

10ShenZhen Properties & Resources Development (Group) Ltd. Third Quarterly Report 2023

Taxes and levies paid 224226839.66 481776111.23

Cash used in other operating activities 223220070.52 220375428.87

Subtotal of cash used in operating

2917347398.413505931871.13

activities

Net cash generated from/used in

-939639052.92-40194271.40

operating activities

2. Cash flows from investing activities:

Proceeds from disinvestment

Return on investment 63120.00

Net proceeds from the disposal of fixed

assets intangible assets and other long- 78255.52 34519.84

lived assets

Net proceeds from the disposal of

subsidiaries and other business units

Cash generated from other investing

activities

Subtotal of cash generated from

141375.5234519.84

investing activities

Payments for the acquisition of fixed

assets intangible assets and other long- 4084842.48 11116125.41

lived assets

Payments for investments 1816919.56 271489501.62

Net increase in pledged loans granted

Net payments for the acquisition of

subsidiaries and other business units

Cash used in other investing activities

Subtotal of cash used in investing

5901762.04282605627.03

activities

Net cash generated from/used in

-5760386.52-282571107.19

investing activities

3. Cash flows from financing activities:

Capital contributions received 0.00 19760000.00

Including: Capital contributions by

0.0019760000.00

non-controlling interests to subsidiaries

Borrowings received 841843775.18 286832330.00

Cash generated from other financing

activities

Subtotal of cash generated from

841843775.18306592330.00

financing activities

Repayment of borrowings 32326662.00 30900000.00

Interest and dividends paid 357864492.62 547401912.61

Including: Dividends paid by

subsidiaries to non-controlling interests

Cash used in other financing activities 20426594.23 1342449.50

Subtotal of cash used in financing

410617748.85579644362.11

activities

Net cash generated from/used in

431226026.33-273052032.11

financing activities

4. Effect of foreign exchange rates

1642658.545698247.23

changes on cash and cash equivalents

5. Net increase in cash and cash

-512530754.57-590119163.47

equivalents

Add: Cash and cash equivalents

1509693857.481963988756.69

beginning of the period

6. Cash and cash equivalents end of the

997163102.911373869593.22

period

11ShenZhen Properties & Resources Development (Group) Ltd. Third Quarterly Report 2023

(II) Adjustments to Financial Statement Items at the Beginning of the Year of the First Implementation

of the New Accounting Standards Implemented since 2023

□ Applicable □ Not applicable

(III) Independent Auditor’s Report

Indicate by tick mark whether the financial statements above have been audited by an independent auditor.□Yes □ No

These financial statements have not been audited by such an auditor.The Board of Directors

Shenzhen Properties & Resources Development (Group) Ltd.

30 October 2023

12