Contents
I. Auditor’s Report ……………………………………………………………Page 1-7
II. Financial Statements ……………………………………………………Page 8-19
(I) Consolidated Balance Sheet ……………………………………………Page 8-9
(II) Parent Company Balance Sheet ………………………………………Page 10-11
(III) Consolidated Income Statement ………………………………………Page 12
(IV) Parent Company Income Statement …………………………………Page 13
(V) Consolidated Cash Flow Statement ……………………………………Page 14
(VI) Parent Company Cash Flow Statement ………………………………Page 15
(VII) Consolidated Statement of Changes in Equity ……………………Page 16-17
(VIII) Parent Company Statement of Changes in Equity ………………Page 18-19
III. Notes to Financial Statements ………………………………………Page 20-111Auditor’s Report
PCCPAAR [2026] No. 7-34
To the Shareholders of Shenzhen Special Economic Zone Real Estate & Properties
(Group) Co. Ltd.:
I. Audit Opinion
We have audited the financial statements of Shenzhen Special Economic Zone Real
Estate & Properties (Group) Co. Ltd. (the “Company”) which comprise the
consolidated and parent company balance sheets as at December 31 2025 the
consolidated and parent company income statements consolidated and parent
company cash flow statements and consolidated and parent company statements of
changes in equity for the year then ended as well as notes to financial statements.In our opinion the accompanying financial statements present fairly in all material
respects the financial position of the Company as at December 31 2025 and its
financial performance and its cash flows for the year then ended in accordance with
China Accounting Standards for Business Enterprises.II. Basis forAudit Opinion
We conducted our audit in accordance with China Standards on Auditing. Our
responsibilities under those standards are further described in the Certified Public
Accountant’s Responsibilities for the Audit of the Financial Statements section of ourreport. We are independent of the Company in accordance with the “Chinese CertifiedPublic Accountant Independence Standard No. 1 – Independence Requirements forFinancial Statement Audit and Review Engagements” and the China Code of Ethics
1for Certified Public Accountants and we have fulfilled other ethical responsibilities.
In conducting our audit we have complied with the independence requirements
applicable to audits of public interest entities. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our audit opinion.III. Key Audit Matters
Key audit matters are those matters that in our professional judgment were of most
significance in our audit of the financial statements of the current period. These
matters were addressed in the context of our audit of the financial statements as a
whole and in forming our opinion thereon and we do not express a separate opinion
on these matters.(I) Revenue recognition
1. Key audit matters
Please refer to section III (XXV) and V (II) 1 of notes to the financial statements for
details.The Company is mainly engaged in real estate sales engineering construction and
property leasing and other businesses. In 2025 the operating revenue amounted to
1482872299.36 yuan of which 1324656290.59 yuan was from the real estate
sales accounting for 89.33% and 81299490.77 yuan was from engineering
construction accounting for 5.48%.As operating revenue is one of the key performance indicators of the Company there
might be inherent risks that the Company’s management (the “Management”) adopts
inappropriate revenue recognition to achieve specific goals or expectations and
revenue recognition involves significant judgment of the Management we have
identified revenue recognition as a key audit matter.
2. Responsive audit procedures
Our main audit procedures for revenue recognition are as follows:
(1) We obtained understandings of key internal controls related to revenue recognition
assessed the design of these controls determined whether they had been executed and
tested the effectiveness of the operation;
(2) We checked main housing sales contracts and lease contracts and assessed
whether the revenue recognition method was appropriate;
2(3) We performed analysis procedure on operating revenue and gross margin by
month business type etc. so as to identify whether there are significant or abnormal
fluctuations and find out the reason;
(4) We checked supporting documents related to selected items including housing
sales contracts housing delivery notices lease contracts sales invoices etc.
(5) We selected items to check the documents including cost budget purchase
contracts subcontract agreements etc. which were taken as the basis for estimating
total cost so as to test whether the performance progress and the revenue recognized
based on performance progress were accurately measured by the Management and
evaluated the reasonableness of the performance progress determined by the
Management in combination with documents including supervision reports progress
confirmation sheets customer statements as well as the on-site observation on
inventory counting;
(6) We performed confirmation procedures on sales amount of selected items in
combination with confirmation procedure of accounts receivable and contract assets;
(7) We performed cut-off tests to check whether the revenue was recognized in the
appropriate period; and
(8) We checked whether information related to operating revenue had been presented
appropriately in the financial statements.(II) Net realizable value of inventories
1. Key audit matters
Please refer to section III (XIII) and V (I) 7 of notes to the financial statements for
details.As of December 31 2025 the book balance of inventories amounted to
1153978849.41 yuan with provision for inventory write-down of 54619230.16
yuan and the carrying amount amounted to 1099359619.25 yuan.Inventories are measured at the lower of cost and net realizable value. The net
realizable value is determined by the Management based on the amount of the
estimated selling price less the cost to be incurred upon completion estimated selling
expenses and relevant taxes and surcharges. As the amount of inventories is
significant and determination of net realizable value involves significant judgment of
3the Management we have identified net realizable value of inventories as a key audit
matter.
2. Responsive audit procedures
Our main audit procedures for net realizable value of inventories are as follows:
(1) We obtained understandings of key internal controls related to net realizable value
of inventories assessed the design of these controls determined whether they had
been executed and tested the effectiveness of the operation;
(2) We reviewed the outcome of the Management’s previous estimates on the net
realizable value or their subsequent re-estimations;
(3) We selected items to assess the reasonableness of the estimated selling price and
reviewed whether the estimated selling price was consistent with sales contract price
market selling price etc.;
(4) We assessed the reasonableness of estimation on cost to be incurred upon
completion selling expenses and relevant taxes and surcharges made by the
Management;
(5) We tested whether the calculation of net realizable value of inventories made by
the Management was accurate;
(6) We identified whether there existed situations such as projects with slow
development or sales progress in combination with observation on inventory
counting and assessed the reasonableness of estimations on net realizable value of
inventories made by the Management; and
(7) We checked whether information related to net realizable value of inventories had
been presented appropriately in the financial statements.IV. Other Information
The Management is responsible for the other information. The other information
comprises the information included in the Company’s annual report but does not
include 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
4the 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 the other information we are required to report that fact. We have
nothing to report in this regard.V. Responsibilities of the Management and Those Charged with Governance for
the Financial Statements
The Management is responsible for preparing and presenting fairly the financial
statements in accordance with China Accounting Standards for Business Enterprises
as well as designing implementing and maintaining internal control relevant to 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 has no
realistic alternative but to do so.Those charged with governance are responsible for overseeing the Company’s
financial reporting process.VI. Certified Public Accountant’s Responsibilities for the Audit of the Financial
Statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement whether due to fraud or
error and to issue an auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance but is not a guarantee that an audit conducted in
accordance with China Standards on Auditing 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.
5We exercise professional judgment and maintain professional skepticism throughout
the audit performed in accordance with China Standards onAuditing. We also:
(I) 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.(II) Obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances.(III) Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by the Management.(IV) 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 to draw 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.(V) 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.(VI) Obtain sufficient and 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 group audit. We remain sole responsibility for our audit
opinion.
6We communicate with those charged with governance regarding the planned audit
scope time schedule and significant audit findings including any deficiencies in
internal control of concern that we identify during our audit.We also provide those charged with governance with a statement that we have
complied with relevant ethical requirements regarding independence and to
communicate with them all relationships and other matters that may reasonably be
thought to bear on our independence and where applicable related safeguards.From the matters communicated with those charged with governance we determine
those matters that were of most significance in the audit of the financial statements of
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.Pan-ChinaCertifiedPublicAccountantsLLP ChineseCertifiedPublicAccountant:WangHuansen
(EngagementPartner)
Hangzhou·China ChineseCertifiedPublicAccountant:LinZhenhua
DateofReport:March182026
The auditor’s report and the accompanying financial statements are English translations of the Chinese auditor’s
report and statutory financial statements prepared under accounting principles and practices generally accepted
in the People’s Republic of China. These financial statements are not intended to present the financial position and
financial performance and cash flows in accordance with accounting principles and practices generally accepted
in other countries and jurisdictions. In case the English version does not conform to the Chinese version the
Chinese version prevails.
7Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.
Consolidated balance sheet as at December 31 2025
(Expressed in Renminbi Yuan)
Assets NoteNo. Closing balance Beginning balance
Current assets:
Cash and bank balances 1 284686525.04 529242725.36
Settlement funds
Loans to other banks
Held-for-trading financial assets 2 1050256058.41 987801938.51
Derivative financial assets
Notes receivable 3 100000.00
Accounts receivable 4 44898083.74 56672795.52
Receivables financing
Advances paid 5 31588.45 1201106.21
Premiums receivable
Reinsurance accounts receivable
Reinsurance reserve receivable
Other receivables 6 747900491.52 7438040.83
Financial assets under reverse repo
Inventories 7 1099359619.25 3636840229.34
Contract assets 8 29035256.28 30888723.09
Assets held for sale
Non-current assets due within one year
Other current assets 9 66133465.24 154192023.86
Total current assets 3322301087.93 5404377582.72
Non-current assets:
Loans and advances
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 10
Other equity instrument investments 11 14571511.81 14697341.18
Other non-current financial assets
Investment property 12 522634659.17 515925116.54
Fixed assets 13 14949900.45 17489207.57
Construction in progress 14 571822.67
Productive biological assets
Oil & gas assets
Right-of-use assets
Intangible assets 15
Development expenditures
Goodwill
Long-term prepayments 16 1615683.92 1719911.72
Deferred tax assets 17 6138319.62 33571496.94
Other non-current assets
Total non-current assets 560481897.64 583403073.95
Total assets 3882782985.57 5987780656.67
Legal representative:Chen Ming Officer in charge of accounting:Wang Jianfei Head of accounting department: Zhou Hongpu
8Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.
Consolidated balance sheet as at December 31 2025 (continued)
(Expressed in Renminbi Yuan)
Liabilities & Equity NoteNo. Closing balance Beginning balance
Current liabilities:
Short-term borrowings 19 50000.00 1563000.00
Central bank loans
Loans from other banks
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 20 171738333.04 464488982.30
Advances received 21 722042.14 1398988.78
Contract liabilities 22 28400659.20 1298146232.35
Financial liabilities under repo
Absorbing deposit and interbank deposit
Deposits for agency security transaction
Deposits for agency security underwriting
Employee benefits payable 23 32757342.88 22499368.29
Taxes and rates payable 24 26922082.58 27554810.01
Other payables 25 144280409.16 561016653.17
Handling fees and commissions payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one year 26 33888347.83
Other current liabilities 27 7565002.87 118304068.47
Total current liabilities 412435871.87 2528860451.20
Non-current liabilities:
Insurance policy reserve
Long-term borrowings 28 62273677.82
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 29
Long-term payables
Long-term employee benefits payable
Provisions
Deferred income
Deferred tax liabilities 17 867914.50 1259459.98
Other non-current liabilities
Total non-current liabilities 867914.50 63533137.80
Total liabilities 413303786.37 2592393589.00
Equity:
Share capital 29 1011660000.00 1011660000.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 30 978244910.11 978244910.11
Less: Treasury shares
Other comprehensive income 31 23315115.52 23060416.31
Special reserve
Surplus reserve 32 275253729.26 275253729.26
General risk reserve
Undistributed profit 33 1323849441.49 1223893437.74
Total equity attributable to the parent company 3612323196.38 3512112493.42
Non-controlling interest -142843997.18 -116725425.75
Total equity 3469479199.20 3395387067.67
Total liabilities & equity 3882782985.57 5987780656.67
Legal representative:Chen Ming Officer in charge of accounting:Wang Jianfei Head of accounting department: Zhou Hongpu
9Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.
Parent company balance sheet as at December 31 2025
(Expressed in Renminbi Yuan)
Assets NoteNo. Closing balance Beginning balance
Current assets:
Cash and bank balances 69884281.83 83656432.61
Held-for-trading financial assets 987801938.51
Derivative financial assets
Notes receivable
Accounts receivable 1 4843552.76 7200138.91
Receivables financing
Advances paid
Other receivables 2 1880427908.13 1751551390.53
Inventories 312474.69 315900.69
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 1294922.05 1037878.95
Total current assets 1956763139.46 2831563680.20
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 3 1132181561.85 1160766664.14
Other equity instrument investments 14571511.81 14697341.18
Other non-current financial assets
Investment property 387434080.02 409742121.37
Fixed assets 9186628.06 10736433.64
Construction in progress 571822.67
Productive biological assets
Oil & gas assets
Right-of-use assets
Intangible assets
Development expenditures
Goodwill
Long-term prepayments 1209606.83 770175.82
Deferred tax assets 469690.21
Other non-current assets
Total non-current assets 1545155211.24 1597182426.36
Total assets 3501918350.70 4428746106.56
Legal representative:Chen Ming Officer in charge of accounting:Wang Jianfei Head of accounting department: Zhou Hongpu
10Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.
Parent company balance sheet as at December 31 2025 (continued)
(Expressed in Renminbi Yuan)
Liabilities & Equity NoteNo. Closing balance Beginning balance
Current liabilities:
Short-term borrowings
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 6692455.48 13684223.19
Advances received
Contract liabilities 94227.61 95842.85
Employee benefits payable 21771697.06 15935363.87
Taxes and rates payable 1161124.78 12314051.54
Other payables 142790324.11 854613311.67
Liabilities held for sale
Non-current liabilities due within one year 374768.60
Other current liabilities 4711.39 4792.15
Total current liabilities 172514540.43 897022353.87
Non-current liabilities:
Long-term borrowings 62273677.82
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee benefits payable
Provisions
Deferred income
Deferred tax liabilities 867914.50 1259459.98
Other non-current liabilities
Total non-current liabilities 867914.50 63533137.80
Total liabilities 173382454.93 960555491.67
Equity:
Share capital 1011660000.00 1011660000.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 964711931.13 964711931.13
Less: Treasury shares
Other comprehensive income 1928633.86 2023005.89
Special reserve
Surplus reserve 252124115.85 252124115.85
Undistributed profit 1098111214.93 1237671562.02
Total equity 3328535895.77 3468190614.89
Total liabilities & equity 3501918350.70 4428746106.56
Legal representative:Chen Ming Officer in charge of accounting:Wang Jianfei Head of accounting department: Zhou Hongpu
11Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.
Consolidated income statement for the year ended December 31 2025
(Expressed in Renminbi Yuan)
Items NoteNo. Current period cumulative Preceding period comparative
I. Total operating revenue 1482872299.36 407022191.44
Including: Operating revenue 1 1482872299.36 407022191.44
Interest income
Premiums earned
Revenue from handling fees and commissions
II. Total operating cost 1183752194.32 426847390.83
Including: Operating cost 1 1069812444.74 332325650.30
Interest expenses
Handling fees and commissions
Surrender value
Net payment of insurance claims
Net provision of insurance policy reserve
Premium bonus expenditures
Reinsurance expenses
Taxes and surcharges 2 21879412.16 16741282.71
Selling expenses 3 20775223.41 13164672.93
Administrative expenses 4 72505249.03 70118532.01
R&D expenses
Financial expenses 5 -1220135.02 -5502747.12
Including: Interest expenses 3760510.21 2586822.94
Interest income 3829111.01 7998718.28
Add: Other income 6 31652.46 842206.39
Investment income (or less: losses) 7 -150943612.67 1346463.59
Including: Investment income from associates and joint ventures
Gains from derecognition of financial assets at amortized cost
Gains on foreign exchange (or less: losses)
Gains on net exposure to hedging risk (or less: losses)
Gains on changes in fair value (or less: losses) 8 16621332.22 18461736.59
Credit impairment loss 9 -2086760.74 -8953080.52
Assets impairment loss 10 -2407322.73 -375188159.83
Gains on asset disposal (or less: losses) 11 -5767.73 195840.20
III. Operating profit (or less: losses) 160329625.85 -383120192.97
Add: Non-operating revenue 12 943633.72 2414677.03
Less: Non-operating expenditures 13 37332.37 267987.97
IV. Profit before tax (or less: total loss) 161235927.20 -380973503.91
Less: Income tax expenses 14 61682858.60 -3377545.61
V. Net profit (or less: net loss) 99553068.60 -377595958.30
(I) Categorized by the continuity of operations
1. Net profit from continuing operations (or less: net loss) 99553068.60 -377595958.30
2. Net profit from discontinued operations (or less: net loss)
(II) Categorized by the portion of equity ownership
1. Net profit attributable to owners of parent company (or less: net loss) 99956003.75 -176710947.65
2. Net profit attributable to non-controlling shareholders (or less: net loss) -402935.15 -200885010.65
VI. Other comprehensive income after tax 1442384.71 -3159868.45
Items attributable to the owners of the parent company 254699.21 -2259043.13
(I) Not to be reclassified subsequently to profit or loss -94372.03 279697.38
1. Remeasurements of the net defined benefit plan
2. Items under equity method that will not be reclassified to profit or loss
3. Changes in fair value of other equity instrument investments -94372.03 279697.38
4. Changes in fair value of own credit risk
5. Others
(II) To be reclassified subsequently to profit or loss 349071.24 -2538740.51
1. Items under equity method that may be reclassified to profit or loss
2. Changes in fair value of other debt investments
3. Profit or loss from reclassification of financial assets into other comprehensive
income
4. Provision for credit impairment of other debt investments
5. Cash flow hedging reserve
6. Translation reserve 349071.24 -2538740.51
7. Others
Items attributable to non-controlling shareholders 1187685.50 -900825.32
VII. Total comprehensive income 100995453.31 -380755826.75
Items attributable to the owners of the parent company 100210702.96 -178969990.78
Items attributable to non-controlling shareholders 784750.35 -201785835.97
VIII. Earnings per share (EPS):
(I) Basic EPS (yuan per share) 0.0988 -0.17
(II) Diluted EPS (yuan per share) 0.0988 -0.17
Legal representative:Chen Ming Officer in charge of accounting:Wang Jianfei Head of accounting department: Zhou Hongpu
12Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.
Parent company income statement for the year ended December 31 2025
(Expressed in Renminbi Yuan)
Items NoteNo. Current period cumulative Preceding period comparative
I. Operating revenue 1 55418737.49 66748188.58
Less: Operating cost 1 32383899.84 35527944.94
Taxes and surcharges 11787996.18 10897850.09
Selling expenses 3537883.41 2662206.55
Administrative expenses 40675125.54 46350929.47
R&D expenses
Financial expenses 3293463.09 -38414.46
Including: Interest expenses 3386158.31 2026547.84
Interest income 940122.04 1621311.93
Add: Other income 28158.18 810791.58
Investment income (or less: losses) 2 915013.90 1346463.59
Including: Investment income from associates and joint ventures
Gains from derecognition of financial assets at amortized cost
Gains on net exposure to hedging risk (or less: losses)
Gains on changes in fair value (or less: losses) 16365273.81 18461736.59
Credit impairment loss -102913935.37 -208718.92
Assets impairment loss -28585102.29 -162599084.25
Gains on asset disposal (or less: losses) -5767.73 224495.95
II. Operating profit (or less: losses) -150455990.07 -170616643.47
Add: Non-operating revenue 97134.22 4.56
Less: Non-operating expenditures 1646.83 31796.55
III. Profit before tax (or less: total loss) -150360502.68 -170648435.46
Less: Income tax expenses -10800155.59 -6709691.79
IV. Net profit (or less: net loss) -139560347.09 -163938743.67
(I) Net profit from continuing operations (or less: net loss) -139560347.09 -163938743.67
(II) Net profit from discontinued operations (or less: net loss)
V. Other comprehensive income after tax -94372.03 279697.38
(I) Not to be reclassified subsequently to profit or loss -94372.03 279697.38
1. Remeasurements of the net defined benefit plan
2. Items under equity method that will not be reclassified to profit
or loss
3. Changes in fair value of other equity instrument investments -94372.03 279697.38
4. Changes in fair value of own credit risk
5. Others
(II) To be reclassified subsequently to profit or loss
1. Items under equity method that may be reclassified to profit or
loss
2. Changes in fair value of other debt investments
3. Profit or loss from reclassification of financial assets into other
comprehensive income
4. Provision for credit impairment of other debt investments
5. Cash flow hedging reserve
6. Translation reserve
7. Others
VI. Total comprehensive income -139654719.12 -163659046.29
VII. Earnings per share (EPS):
(I) Basic EPS (yuan per share)
(II) Diluted EPS (yuan per share)
Legal representative:Chen Ming Officer in charge of accounting:Wang Jianfei Head of accounting department: Zhou Hongpu
13Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.
Consolidated cash flow statement for the year ended December 31 2025
(Expressed in Renminbi Yuan)
Items Note Current period Preceding periodNo. cumulative comparative
I. Cash flows from operating activities:
Cash receipts from sale of goods or rendering of services 249184246.74 448831107.10
Net increase of client deposit and interbank deposit
Net increase of central bank loans
Net increase of loans from other financial institutions
Cash receipts from original insurance contract premium
Net cash receipts from reinsurance
Net increase of policy-holder deposit and investment
Cash receipts from interest handling fees and commissions
Net increase of loans from others
Net increase of repurchase
Net cash receipts from agency security transaction
Receipts of tax refund 14477207.75 20414313.02
Other cash receipts related to operating activities 2 (1) 4802922.19 15889802.02
Subtotal of cash inflows from operating activities 268464376.68 485135222.14
Cash payments for goods purchased and services received 159265542.61 350375195.02
Net increase of loans and advances to clients
Net increase of central bank deposit and interbank deposit
Cash payments for insurance indemnities of original insurance contracts
Net increase of loans to others
Cash payments for interest handling fees and commissions
Cash payments for policy bonus
Cash paid to and on behalf of employees 66521536.12 76680764.14
Cash payments for taxes and rates 85194960.04 133539738.45
Other cash payments related to operating activities 2 (2) 52801771.84 51943474.32
Subtotal of cash outflows from operating activities 363783810.61 612539171.93
Net cash flows from operating activities -95319433.93 -127403949.79
II. Cash flows from investing activities:
Cash receipts from withdrawal of investments
Cash receipts from investment income 1 (1) 778495.00 777600.00
Net cash receipts from the disposal of fixed assets intangible assets and other long-
term assets 1 (2) 162736.20 519930.21
Net cash receipts from the disposal of subsidiaries & other business units 1 (3) 78085.65 568863.59
Other cash receipts related to investing activities 2 (3) 1114167212.32
Subtotal of cash inflows from investing activities 1115186529.17 1866393.80
Cash payments for the acquisition of fixed assets intangible assets and other long-
term assets 1 (4) 1905620.00 1547315.83
Cash payments for investments
Net increase of pledged borrowings
Net cash payments for the acquisition of subsidiaries & other business units
Other cash payments related to investing activities 2 (4) 1160000000.00 90000000.00
Subtotal of cash outflows from investing activities 1161905620.00 91547315.83
Net cash flows from investing activities -46719090.83 -89680922.03
III. Cash flows from financing activities:
Cash receipts from absorbing investments
Including: Cash received by subsidiaries from non-controlling shareholders as
investments
Cash receipts from borrowings 50000.00 1563000.00
Other cash receipts related to financing activities
Subtotal of cash inflows from financing activities 50000.00 1563000.00
Cash payments for the repayment of borrowings 96162025.65 117562497.60
Cash payments for distribution of dividends or profits and for interest expenses 3760510.21 5251186.81
Including: Cash paid by subsidiaries to non-controlling shareholders as dividend or
profit
Other cash payments related to financing activities
Subtotal of cash outflows from financing activities 99922535.86 122813684.41
Net cash flows from financing activities -99872535.86 -121250684.41
IV. Effect of foreign exchange rate changes on cash and cash equivalents -107272.95 99397.32
V. Net increase in cash and cash equivalents -242018333.57 -338236158.91
Add: Opening balance of cash and cash equivalents 520910254.44 859146413.35
VI. Closing balance of cash and cash equivalents 278891920.87 520910254.44
Legal representative:Chen Ming Officer in charge of accounting:Wang Jianfei Head of accounting department: Zhou Hongpu
14Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.
Parent company cash flow statement for the year ended December 31 2025
(Expressed in Renminbi Yuan)
Items Current period Preceding periodcumulative comparative
I. Cash flows from operating activities:
Cash receipts from sale of goods and rendering of services 60541112.28 73948934.37
Receipts of tax refund 78381.82
Other cash receipts related to operating activities 1063939.44 92592202.32
Subtotal of cash inflows from operating activities 61605051.72 166619518.51
Cash payments for goods purchased and services received 14700881.22 878298.06
Cash paid to and on behalf of employees 32496371.88 40882224.68
Cash payments for taxes and rates 13179103.88 24077901.52
Other cash payments related to operating activities 952087247.22 42931087.13
Subtotal of cash outflows from operating activities 1012463604.20 108769511.39
Net cash flows from operating activities -950858552.48 57850007.12
II. Cash flows from investing activities:
Cash receipts from withdrawal of investments
Cash receipts from investment income 915013.90 1346463.59
Net cash receipts from the disposal of fixed assets intangible
assets and other long-term assets 1507.50
Net cash receipts from the disposal of subsidiaries & other
business units
Other cash receipts related to investing activities 1114167212.32
Subtotal of cash inflows from investing activities 1115083733.72 1346463.59
Cash payments for the acquisition of fixed assets intangible assets
and other long-term assets 1962727.29 365798.00
Cash payments for investments
Net cash payments for the acquisition of subsidiaries & other
business units
Other cash payments related to investing activities 110000000.00 90000000.00
Subtotal of cash outflows from investing activities 111962727.29 90365798.00
Net cash flows from investing activities 1003121006.43 -89019334.41
III. Cash flows from financing activities:
Cash receipts from absorbing investments
Cash receipts from borrowings
Other cash receipts related to financing activities
Subtotal of cash inflows from financing activities
Cash payments for the repayment of borrowings 62648446.42 125173.20
Cash payments for distribution of dividends or profits and for
interest expenses 3386158.31 2026547.84
Other cash payments related to financing activities
Subtotal of cash outflows from financing activities 66034604.73 2151721.04
Net cash flows from financing activities -66034604.73 -2151721.04
IV. Effect of foreign exchange rate changes on cash and cash
equivalents
V. Net increase in cash and cash equivalents -13772150.78 -33321048.33
Add: Opening balance of cash and cash equivalents 83656432.61 116977480.94
VI. Closing balance of cash and cash equivalents 69884281.83 83656432.61
Legal representative:Chen Ming Officer in charge of accounting:Wang Jianfei Head of accounting department: Zhou Hongpu
15Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.
Consolidated statement of changes in equity for the year ended December 31 2025
(Expressed in Renminbi Yuan)
Current period cumulative
Equity attributable to parent company
Items Other equity instruments Less: Other General Non-controlling
Share capital Preferred Perpetual Capital reserve Treasury comprehensive
Special Surplus risk Undistributed interest
Total equity
Others shares income reserve reserve reserve profitshares bonds
I. Balance at the end of prior year 1011660000.00 978244910.11 23060416.31 275253729.26 1223893437.74 -116725425.75 3395387067.67
Add: Cumulative changes of accounting
policies
Error correction of prior period
Business combination under common control
Others
II. Balance at the beginning of current year 1011660000.00 978244910.11 23060416.31 275253729.26 1223893437.74 -116725425.75 3395387067.67
III. Current period increase (or less: decrease) 254699.21 99956003.75 -26118571.43 74092131.53
(I) Total comprehensive income 254699.21 99956003.75 784750.35 100995453.31
(II) Capital contributed or withdrawn by owners -26903321.78 -26903321.78
1. Ordinary shares contributed by owners
2. Capital contributed by holders of other equity
instruments
3. Amount of share-based payment included in
equity
4. Others -26903321.78 -26903321.78
(III) Profit distribution
1. Appropriation of surplus reserve
2. Appropriation of general risk reserve
3. Appropriation of profit to shareholders
4. Others
(IV) Internal carry-over within equity
1. Transfer of capital reserve to capital
2. Transfer of surplus reserve to capital
3. Surplus reserve to cover losses
4. Changes in defined benefit plan carried over
to retained earnings
5. Other comprehensive income carried over to
retained earnings
6. Others
(V) Special reserve
1. Current period appropriation
2. Current period use
(VI) Others
IV. Balance at the end of current period 1011660000.00 978244910.11 23315115.52 275253729.26 1323849441.49 -142843997.18 3469479199.20
Legal representative:Chen Ming Officer in charge of accounting:Wang Jianfei Head of accounting department:Zhou Hongpu
16Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.
Consolidated statement of changes in equity for the year ended December 31 2025 (continued)
(Expressed in Renminbi Yuan)
Preceding period comparative
Equity attributable to parent company
Items Other equity instruments Less: Other General Non-controlling
Share capital Capital reserve Treasury comprehensive Special Surplus risk Undistributed
Total equity
Preferred Perpetual interestOthers shares income reserve reserve reserve profitshares bonds
I. Balance at the end of prior year 1011660000.00 978244910.11 25319459.44 275253729.26 1400604385.39 85060410.22 3776142894.42
Add: Cumulative changes of accounting
policies
Error correction of prior period
Business combination under common control
Others
II. Balance at the beginning of current year 1011660000.00 978244910.11 25319459.44 275253729.26 1400604385.39 85060410.22 3776142894.42
III. Current period increase (or less: decrease) -2259043.13 -176710947.65 -201785835.97 -380755826.75
(I) Total comprehensive income -2259043.13 -176710947.65 -201785835.97 -380755826.75
(II) Capital contributed or withdrawn by owners
1. Ordinary shares contributed by owners
2. Capital contributed by holders of other equity
instruments
3. Amount of share-based payment included in
equity
4. Others
(III) Profit distribution
1. Appropriation of surplus reserve
2. Appropriation of general risk reserve
3. Appropriation of profit to shareholders
4. Others
(IV) Internal carry-over within equity
1. Transfer of capital reserve to capital
2. Transfer of surplus reserve to capital
3. Surplus reserve to cover losses
4. Changes in defined benefit plan carried over
to retained earnings
5. Other comprehensive income carried over to
retained earnings
6. Others
(V) Special reserve
1. Current period appropriation
2. Current period use
(VI) Others
IV. Balance at the end of current period 1011660000.00 978244910.11 23060416.31 275253729.26 1223893437.74 -116725425.75 3395387067.67
Legal representative:Chen Ming Officer in charge of accounting:Wang Jianfei Head of accounting department:Zhou Hongpu
17Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.
Parent company statement of changes in equity for the year ended December 31 2025
(Expressed in Renminbi Yuan)
Current period cumulative
Items Other equity instruments Less: Other
Share capital SpecialPreferred Perpetual Capital reserve Treasury comprehensive reserve Surplus reserve Undistributed profit Total equity
shares bonds Others shares income
I. Balance at the end of prior year 1011660000.00 964711931.13 2023005.89 252124115.85 1237671562.02 3468190614.89
Add: Cumulative changes of accounting policies
Error correction of prior period
Others
II. Balance at the beginning of current year 1011660000.00 964711931.13 2023005.89 252124115.85 1237671562.02 3468190614.89
III. Current period increase (or less: decrease) -94372.03 -139560347.09 -139654719.12
(I) Total comprehensive income -94372.03 -139560347.09 -139654719.12
(II) Capital contributed or withdrawn by owners
1. Ordinary shares contributed by owners
2. Capital contributed by holders of other equity
instruments
3. Amount of share-based payment included in equity
4. Others
(III) Profit distribution
1. Appropriation of surplus reserve
2. Appropriation of profit to shareholders
3. Others
(IV) Internal carry-over within equity
1. Transfer of capital reserve to capital
2. Transfer of surplus reserve to capital
3. Surplus reserve to cover losses
4. Changes in defined benefit plan carried over to
retained earnings
5. Other comprehensive income carried over to retained
earnings
6. Others
(V) Special reserve
1. Current period appropriation
2. Current period use
(VI) Others
IV. Balance at the end of current period 1011660000.00 964711931.13 1928633.86 252124115.85 1098111214.93 3328535895.77
Legal representative:Chen Ming Officer in charge of accounting:Wang Jianfei Head of accounting department:Zhou Hongpu
18Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.
Parent company statement of changes in equity for the year ended December 31 2025(continued)
(Expressed in Renminbi Yuan)
Preceding period comparative
Items Other equity instruments Less: Other
Share capital Capital reserve Treasury comprehensive Special Surplus reserve UndistributedPreferred Perpetual reserve profit Total equity
shares bonds Others shares income
I. Balance at the end of prior year 1011660000.00 964711931.13 1743308.51 252124115.85 1401610305.69 3631849661.18
Add: Cumulative changes of accounting policies
Error correction of prior period
Others
II. Balance at the beginning of current year 1011660000.00 964711931.13 1743308.51 252124115.85 1401610305.69 3631849661.18
III. Current period increase (or less: decrease) 279697.38 -163938743.67 -163659046.29
(I) Total comprehensive income 279697.38 -163938743.67 -163659046.29
(II) Capital contributed or withdrawn by owners
1. Ordinary shares contributed by owners
2. Capital contributed by holders of other equity
instruments
3. Amount of share-based payment included in equity
4. Others
(III) Profit distribution
1. Appropriation of surplus reserve
2. Appropriation of profit to shareholders
3. Others
(IV) Internal carry-over within equity
1. Transfer of capital reserve to capital
2. Transfer of surplus reserve to capital
3. Surplus reserve to cover losses
4. Changes in defined benefit plan carried over to
retained earnings
5. Other comprehensive income carried over to retained
earnings
6. Others
(V) Special reserve
1. Current period appropriation
2. Current period use
(VI) Others
IV. Balance at the end of current period 1011660000.00 964711931.13 2023005.89 252124115.85 1237671562.02 3468190614.89
Legal representative:Chen Ming Officer in charge of accounting:Wang Jianfei Head of accounting department:Zhou Hongpu
19Shenzhen Special Economic Zone Real Estate (Group) Co. Ltd
Notes to the Financial Statements
2025
Amount in RMB
1、 Basic information of the company
Shenzhen Special Economic Zone Real Estate (Group) Co. Ltd. (hereinafter referred to as
the company or the company) was reorganized and established as a joint stock limited company
on the basis of the former Shenzhen Special Economic Zone Real Estate Corporation with the
approval of the general office of the Shenzhen Municipal People's government. It was registered
with the Shenzhen Administration for Industry and Commerce of Guangdong Province in July
1993 and is headquartered in Shenzhen Guangdong Province.The unified social credit code of the
company is 91440300192179585N the registered capital is 1011660000.00 yuan and the total
number of shares is 1011660000 shares (par value 1 yuan per share). Among them 891660000
A-shares and 120000000 B-shares were outstanding without restrictions. The company's shares
were listed and traded on the Shenzhen Stock Exchange on September 15 1993 and January 10
1994 respectively.
The company belongs to the real estate industry. The main business activities are real estate
development and commercial housing sales property leasing and management commodity retail
and trade hotel business equipment installation and maintenance construction interior
decoration and other businesses.The financial statements have been approved by the 28th meeting of the eighth board of
directors of the company on March 18 2026.
2、 Basis of preparation of financial statements
（1） Basis of compilation
The financial statements of the company are prepared on a going concern basis.
（2） Sustainability assessment
The company has no events or circumstances that cause material doubts about its ability to
continue as a going concern within 12 months from the end of the reporting period.
3、 Significant accounting policies and accounting estimates
20Important note: according to the actual production and operation characteristics the company
has formulated specific accounting policies and accounting estimates for transactions or events
such as impairment of financial instruments inventory depreciation of fixed assets construction
in progress intangible assets and revenue recognition.
（1） Statement of compliance with accounting standards for business enterprises
The financial statements prepared by the company comply with the requirements of the
accounting standards for business enterprises and truly and completely reflect the financial
position operating results and cash flow of the company.
（2） Fiscal period
The fiscal year starts on January 1 and ends on December 31 of the Gregorian calendar.
（3） Business cycle
The business cycle of the company's business is relatively short and 12 months is used as the
liquidity classification standard of assets and liabilities. The business cycle of the real estate
industry from real estate development to sales realization is generally more than 12 months and
the specific cycle is determined according to the development project and its business cycle is
used as the liquidity classification standard of assets and liabilities.
（4） Bookkeeping base currency
RMB is used as the bookkeeping base currency. The company and its overseas Hong Kong
subsidiaries adopt RMB as the bookkeeping base currency and the overseas subsidiaries of great
wall real estate Co. Ltd. are engaged in overseas operations and the US dollar the currency in the
main economic environment in which they operate is selected as the bookkeeping base currency.The currency used by the company for the preparation of these financial statements is RMB.
（5） Determination method and selection basis of importance standard
The company's preparation and disclosure of the financial statements comply with the
principle of materiality. The matters disclosed in the notes to the financial statements that involve
the judgment of the materiality standard and the determination method and selection basis of the
materiality standard are as follows:
Judgment involving importance criteria Determination method and selection basis of
disclosures importance standard
Recovery or reversal of bad debt reserves
for important notes receivable The single amount exceeds 0.5% of the total assets
Important write off notes receivable The single amount exceeds 0.5% of the total assets
Important accounts receivable with single
provision for bad debts The single amount exceeds 0.5% of the total assets
Recovery or reversal of bad debt reserves
for important accounts receivable The single amount exceeds 0.5% of the total assets
Important write off accounts receivable The single amount exceeds 0.5% of the total assets
Other receivables with important single
provision for bad debts The single amount exceeds 0.5% of the total assets
Recovery or reversal of bad debt reserves
for important other receivables The single amount exceeds 0.5% of the total assets
Important write off of other receivables The single amount exceeds 0.5% of the total assets
Important contract assets with individual
provision for impairment The single amount exceeds 0.5% of the total assets
Recovery or reversal of provision for
impairment of important contract assets The single amount exceeds 0.5% of the total assets
21Important write off contract assets The single amount exceeds 0.5% of the total assets
Significant change in book value of
contract assets The change amount exceeds 0.5% of the total assets
Important prepayments older than 1 year The single amount exceeds 0.5% of the total assets
Important projects under construction The total investment in a single project exceeds0.5% of the total assets
Significant overdue borrowings The single amount exceeds 0.5% of the total assets
Significant overdue interest payable The single amount exceeds 0.5% of the total assets
Important accounts payable older than 1
year The single amount exceeds 0.5% of the total assets
Other accounts payable with important
account age exceeding 1 year The single amount exceeds 0.5% of the total assets
Important advance receipts older than 1
year or overdue The single amount exceeds 0.5% of the total assets
Important contract liabilities with an
account age of more than one year The single amount exceeds 0.5% of the total assets
Significant change in book value of
contract liabilities The change amount exceeds 0.5% of the total assets
Cash flow from important investment
activities The single amount exceeds 5% of the total assets
Important subsidiaries and non wholly- Total assets/total revenue/total profit exceeds 15%
owned subsidiaries of total assets/total revenue/total profit of the group
The book value of a single long-term equity
investment exceeds 15% of the group's net
Important joint ventures and associates assets/the investment income calculated by a single
equity method exceeds 15% of the group's total
profit
（6） Accounting treatment methods for business combinations under the common control
and not under the common control
1. Accounting treatment of business combination under the common control
The assets and liabilities obtained by the company in the merger of enterprises shall be
measured according to the book value of the combined party in the consolidated financial
statements of the final controller on the merger date. The company adjusts the capital reserve
according to the difference between the book value share of the owner's equity of the merged
party in the consolidated financial statements of the final controller and the book value of the
merger consideration paid or the total face value of the shares issued; If the capital reserve is
insufficient to offset the retained earnings shall be adjusted.
2. Accounting treatment of business combinations not under the common control
On the acquisition date the difference between the merger cost and the fair value share of the
identifiable net assets of the acquiree obtained in the merger is recognized as goodwill; If the
merger cost is less than the fair value share of the identifiable net assets of the acquiree obtained in
the merger the fair value of the identifiable assets liabilities and contingent liabilities of the
acquiree obtained and the measurement of the merger cost shall be reviewed first. If the merger
cost is still less than the fair value share of the identifiable net assets of the acquiree obtained in
the merger after review the difference shall be included in the current profit and loss.（ 7 ） Judgment criteria for control and preparation method of consolidated financial
statements
221. Judgment of control
It is recognized as control if it has the power over the investee enjoys variable returns by
participating in the relevant activities of the investee and has the ability to use its power over the
investee to affect its variable return amount.
2. Preparation method of consolidated financial statements
The parent company includes all subsidiaries under its control in the scope of consolidation
of the consolidated financial statements. The consolidated financial statements are based on the
financial statements of the parent company and its subsidiaries and are prepared by the parent
company in accordance with the accounting standards for enterprises No.33-consolidated financial
statements in accordance with other relevant information.（ 8 ） Classification of joint venture arrangements and accounting treatment of joint
operations
1. Joint venture arrangements are divided into joint ventures and joint ventures.
2. When the company is a joint venture party to a joint operation the following items related
to the share of interests in the joint operation shall be recognized:
(1) Confirm the assets held separately and the assets held jointly according to the holding
share;
(2) Recognize the liabilities assumed separately and the liabilities assumed jointly according
to the holding share;
(3) Recognize the income generated by the sale of the company's share of joint operating
output;
(4) Recognize the income generated from the sale of assets in the joint operation according to
the company's holding share;
(5) Confirm the expenses incurred separately and the expenses incurred in joint operation
according to the share held by the company.
（9） Criteria for determining cash and cash equivalents
Cash listed in the cash flow statement refers to cash on hand and deposits that can be used for
payment at any time. Cash equivalents refer to investments held by enterprises with short term
strong liquidity easy conversion to known amounts of cash and little risk of value changes.
（10） Foreign currency business and translation of foreign currency statements
1. Translation of foreign currency business
When foreign currency transactions are initially recognized they are converted into RMB at
the spot exchange rate on the date of the transaction. On the balance sheet date foreign currency
monetary items are converted at the spot exchange rate on the balance sheet date. The exchange
difference arising from different exchange rates is included in the current profit and loss except
for the exchange difference between the principal and interest of foreign currency special loans
related to the purchase and construction of assets eligible for capitalization; Non monetary items
in foreign currencies measured at historical cost shall still be converted at the spot exchange rate
on the date of transaction without changing their RMB amount; Non monetary items in foreign
currencies measured at fair value are translated at the spot exchange rate on the date of
determination of fair value and the difference is included in current profits and losses or other
comprehensive income.
2. Translation of foreign currency financial statements
The assets and liabilities in the balance sheet shall be converted at the spot exchange rate on
23the balance sheet date; Except for the "undistributed profit" item other items of owner's equity are
converted at the spot exchange rate on the transaction date; The income and expense items in the
income statement shall be converted at the approximate exchange rate of the spot exchange rate on
the date of transaction. The translation difference of foreign currency financial statements arising
from the above conversion is included in other comprehensive income.
（11） Financial instruments
1. Classification of financial assets and liabilities
Financial assets are divided into the following three categories at initial recognition: (1)
financial assets measured at amortized cost; (2) Financial assets measured at fair value with
changes included in other comprehensive income; (3) Financial assets measured at fair value and
whose changes are included in the current profit and loss.Financial liabilities are divided into the following four categories at initial recognition: (1)
financial liabilities measured at fair value and whose changes are included in the current profit and
loss; (2) The transfer of financial assets does not meet the conditions for termination of
recognition or continues to be involved in the financial liabilities formed by the transferred
financial assets; (3) Financial guarantee contracts that do not belong to (1) or (2) above and loan
commitments that do not belong to (1) above and lend at a lower market interest rate; (4) Financial
liabilities measured at amortized cost.
2. Recognition basis measurement method and conditions for termination of recognition of
financial assets and financial liabilities
(1) Recognition basis and initial measurement method of financial assets and financial
liabilities
A financial asset or financial liability is recognized when the company becomes a party to a
financial instrument contract. When financial assets or financial liabilities are initially recognized
they are measured at fair value; For financial assets and financial liabilities measured at fair value
and whose changes are included in the current profit and loss the relevant transaction costs are
directly included in the current profit and loss; For other types of financial assets or financial
liabilities the relevant transaction costs are included in the initial recognition amount. However if
the accounts receivable initially recognized by the company does not contain major financing
components or the company does not consider the financing components in contracts not
exceeding one year the initial measurement shall be made in accordance with the transaction price
defined in the accounting standards for enterprises No.14 - revenue.
(2) Subsequent measurement methods of financial assets
1) Financial assets measured at amortized cost
The effective interest rate method is adopted for subsequent measurement according to the
amortized cost. Gains or losses arising from financial assets measured at amortized cost and not
part of any hedging relationship are included in the current profit and loss when they are
derecognized reclassified amortized or recognized as impaired under the effective interest rate
method.
2) Investment in debt instruments at fair value through other comprehensive income
Fair value is used for subsequent measurement.Interest impairment losses or gains and
exchange gains and losses calculated using the effective interest rate method are included in the
current profit and loss while other gains or losses are included in other comprehensive income. At
the time of termination of recognition the cumulative gains or losses previously included in other
24comprehensive income shall be transferred out of other comprehensive income and included in the
current profit and loss.
3) Equity instrument investments measured at fair value with changes included in other
comprehensive income
Fair value is used for subsequent measurement. Dividends obtained (except for the part of
investment cost recovery) are included in the current profit and loss and other gains or losses are
included in other comprehensive income. At the time of termination of recognition the cumulative
gains or losses previously included in other comprehensive income are transferred out of other
comprehensive income and included in retained earnings.
4) Financial assets measured at fair value with changes included in current profit and loss
Subsequent measurement is carried out at fair value and the resulting gains or losses
(including interest and dividend income) are included in the current profit and loss unless the
financial asset is part of the hedging relationship.
(3) Subsequent measurement methods of financial liabilities
1) Financial liabilities measured at fair value with changes included in current profit and loss
Such financial liabilities include trading financial liabilities (including derivatives belonging
to financial liabilities) and financial liabilities designated as measured at fair value and whose
changes are included in the current profit and loss. Such financial liabilities are subsequently
measured at fair value. The amount of change in fair value of financial liabilities designated as
measured at fair value through profit or loss due to changes in the company's own credit risk is
included in other comprehensive income unless the treatment will cause or expand the accounting
mismatch in profit or loss.Other gains or losses arising from such financial liabilities (including
interest expenses except changes in fair value caused by changes in the company's own credit risk)
are included in the current profit and loss unless the financial liabilities are part of the hedging
relationship. At the time of termination of recognition the cumulative gains or losses previously
included in other comprehensive income are transferred out of other comprehensive income and
included in retained earnings.
2) Financial liabilities formed by the transfer of financial assets that do not meet the
conditions for termination of recognition or continue to be involved in the transferred financial
assets
It is measured in accordance with the relevant provisions of the accounting standards for
enterprises No.23 - transfer of financial assets.
3) Financial guarantee contracts that do not belong to 1) or 2) above and loan commitments
that do not belong to 1) above and lend at a lower market interest rate
After initial recognition subsequent measurement shall be made according to the higher of
the following two amounts: * The amount of loss reserves determined in accordance with the
impairment provisions of financial instruments;* The balance of the initially recognized amount
after deducting the cumulative amortization determined in accordance with the relevant provisions
of the accounting standards for enterprises No.14 - revenue.
4) Financial liabilities measured at amortized cost
The effective interest rate method is used to measure at amortized cost. Gains or losses
arising from financial liabilities measured at amortized cost and not part of any hedging
relationship are included in the current profit and loss when they are derecognized and amortized
according to the effective interest rate method.
25(4) Derecognition of financial assets and financial liabilities
1) When one of the following conditions is met the recognition of financial assets is
terminated:
* The contractual right to collect cash flows from financial assets has been terminated;
* Financial assets have been transferred and the transfer meets the provisions of the
accounting standards for enterprises No.23 - transfer of financial assets on the termination of
recognition of financial assets.
2) When the current obligation of a financial liability (or part of it) has been discharged the
recognition of the financial liability (or part of the financial liability) shall be terminated
accordingly.
3. Recognition basis and measurement method of transfer of financial assets
If the company transfers almost all the risks and rewards of the ownership of a financial asset
it shall terminate the recognition of the financial asset and the rights and obligations arising or
retained in the transfer shall be separately recognized as assets or liabilities; If almost all the risks
and rewards of the ownership of financial assets are retained the transferred financial assets shall
continue to be recognized. If the company neither transfers nor retains almost all the risks and
remuneration of the ownership of financial assets it shall be dealt with as follows: (1) if it does
not retain control over the financial assets the recognition of the financial assets shall be
terminated and the rights and obligations arising or retained in the transfer shall be separately
recognized as assets or liabilities; (2) If the control over the financial assets is retained the
relevant financial assets shall be recognized according to the degree of continued involvement in
the transferred financial assets and the relevant liabilities shall be recognized accordingly.If the overall transfer of financial assets meets the conditions for termination of recognition
the difference between the following two amounts shall be included in the current profit and loss:
(1) the book value of the transferred financial assets on the date of termination of recognition; (2)
The sum of the consideration received from the transfer of financial assets and the amount of the
corresponding derecognized part of the cumulative changes in fair value originally directly
included in other comprehensive income (the financial assets involved in the transfer are debt
instrument investments measured at fair value and whose changes are included in other
comprehensive income).If a part of a financial asset is transferred and the transferred part as a
whole meets the conditions for termination of recognition the overall book value of the financial
asset before transfer shall be apportioned between the part that is terminated and the part that
continues to be recognized according to their respective relative fair values on the transfer date
and the difference between the following two amounts shall be included in the current profit and
loss: (1) the book value of the part that is terminated; (2) The sum of the consideration of the part
whose recognition is terminated and the amount of the part whose recognition is terminated
corresponding to the cumulative amount of fair value changes originally directly included in other
comprehensive income (the financial assets involved in transfer are debt instrument investments
measured at fair value and whose changes are included in other comprehensive income).
4. Determination method of fair value of financial assets and financial liabilities
The company adopts valuation techniques that are applicable in the current situation and
supported by sufficient available data and other information to determine the fair value of relevant
financial assets and financial liabilities.The company divides the input values used in the valuation
technology into the following levels and uses them in turn:
26(1) The input value of the first level is the unadjusted quotation of the same assets or
liabilities that can be obtained on the measurement date in the active market;
(2) The second level input value is the directly or indirectly observable input value of related
assets or liabilities in addition to the first level input value including: the quotation of similar
assets or liabilities in the active market;Quotations for identical or similar assets or liabilities in
inactive markets;Other observable inputs other than quotation such as interest rate and yield curve
observable during normal quotation interval; Input value of market verification etc;
(3) The third level of input value is the unobservable input value of related assets or liabilities
including interest rates that cannot be directly observed or verified by observable market data
stock volatility future cash flow of disposal obligations undertaken in business mergers financial
forecasts made using their own data etc.
5. Impairment of financial instruments
On the basis of expected credit losses the company carries out impairment treatment on
financial assets measured at amortized cost debt instrument investments measured at fair value
with changes included in other comprehensive income contract assets lease receivables loan
commitments other than financial liabilities classified as financial liabilities measured at fair value
with changes included in current profit and loss financial liabilities not measured at fair value
with changes included in current profit and loss or financial guarantee contracts not belonging to
financial assets whose transfer does not meet the conditions for termination of recognition or
continues to be involved in the transferred financial assets and recognizes loss reserves.Expected credit losses refer to the weighted average value of credit losses of financial
instruments weighted by the risk of default.Credit loss refers to the difference between all contract
cash flows receivable under the contract and all cash flows expected to be received by the
company discounted at the original effective interest rate that is the present value of all cash
shortages.Among them the financial assets purchased or generated by the company that have
suffered credit impairment are discounted at the effective interest rate adjusted by the credit of the
financial assets.For financial assets purchased or generated with credit impairment the company only
recognizes the cumulative changes in expected credit losses during the whole duration after initial
recognition as loss reserves on the balance sheet date.For lease receivables receivables and contract assets formed by transactions regulated by the
accounting standards for enterprises No.14 - income the company uses a simplified measurement
method to measure the loss reserve according to the expected credit loss amount equivalent to the
whole duration.For financial assets other than the above measurement methods the company assesses
whether its credit risk has increased significantly since initial recognition on each balance sheet
date.If the credit risk has increased significantly since initial recognition the company measures
the loss reserve according to the amount of expected credit loss during the whole duration; If the
credit risk has not increased significantly since initial recognition the company measures the loss
reserve according to the amount of expected credit loss of the financial instrument in the next 12
months.The company uses available reasonable and evidentiary information including forward-
looking information to determine whether the credit risk of financial instruments has increased
significantly since initial recognition by comparing the risk of default of financial instruments on
27the balance sheet date with the risk of default on the initial recognition date.
On the balance sheet date if the company judges that a financial instrument has only a low
credit risk it is assumed that the credit risk of the financial instrument has not increased
significantly since initial recognition.The company assesses the expected credit risk and measures the expected credit loss on the
basis of a single financial instrument or a combination of financial instruments.When based on the
portfolio of financial instruments the company divides financial instruments into different
portfolios based on common risk characteristics.The company remeasures the expected credit loss on each balance sheet date and the
increase or reversal of the loss provision thus formed is included in the current profit and loss as
an impairment loss or gain.For financial assets measured at amortized cost the loss provision shall
be offset against the book value of the financial assets listed in the balance sheet;For creditor's
rights investments measured at fair value and whose changes are included in other comprehensive
income the company recognizes its loss reserves in other comprehensive income and does not
offset the book value of the financial asset.
6. Set off of financial assets and financial liabilities
Financial assets and financial liabilities are presented separately in the balance sheet and do
not offset each other.However if the following conditions are met at the same time the company
shall list them in the balance sheet at the net amount after mutual offset: (1) the company has the
legal right to offset the recognized amount and such legal right is currently enforceable; (2) The
company plans to settle at a net amount or realize the financial assets and settle the financial
liabilities at the same time.For the transfer of financial assets that do not meet the conditions for termination of
recognition the company will not offset the transferred financial assets and related liabilities.
（12） Recognition criteria and provision methods for expected credit losses of receivables
and contract assets
1. Receivables and contract assets with expected credit losses withdrawn according to the
combination of credit risk characteristics
Portfolio category Basis for determining portfolio Methods of measuringexpected credit losses
Bank acceptance bills Referring to the experience of
receivable historical credit losscombined with the current
situation and the forecast of
Note type future economic conditionsthe expected credit loss is
Commercial acceptance bills calculated through default
receivable risk exposure and the
expected credit loss rate for
the whole duration
Accounts receivable portfolio of Referring to the experience of
related parties within the scope Nature of payment historical credit loss
of consolidation combined with the current
Accounts receivable - portfolio situation and the forecast of
of real estate sales receivables Nature of payment future economic conditions
Accounts receivable the expected credit loss is
construction portfolio Nature of payment calculated through default
Accounts receivable - accounts Nature of payment risk exposure and thereceivable from other customer expected credit loss rate for
28Portfolio category Basis for determining portfolio Methods of measuringexpected credit losses
portfolios the whole duration
Other receivables - portfolio of
receivables from government Nature of payment Referring to historical credit
departments loss experience combined
Other receivables - employee with the current situation and
reserve portfolio receivable Nature of payment the forecast of future
Other receivables - combination economic conditions the
of receivables and payments Nature of payment expected credit loss is
Other receivables portfolio of calculated through default
receivables from related parties Nature of payment risk exposure and theexpected credit loss rate in
Other receivables - portfolio of the next 12 months or the
other current accounts Nature of payment whole duration
receivable
Contract asset real estate sales Nature of payment Referring to the experience ofportfolio historical credit loss
combined with the current
situation and the forecast of
future economic conditions
Contract asset construction Nature of payment the expected credit loss isportfolio calculated through default
risk exposure and the
expected credit loss rate for
the whole duration
2. Recognition criteria for receivables and contract assets with individual provision for
expected credit losses
For receivables and contract assets with significantly different credit risk and portfolio credit
risk the company withdraws expected credit losses on a single basis.
（13） Inventory
1. Classification of inventory
Inventory includes development land development products development products
temporarily leased for sale in the process of development and operation as well as development
costs in the process of development.
2. Valuation method of issued inventory
(1) Materials and equipment issued shall be priced individually.
(2) During the development of the project the land for development shall be allocated
according to the floor area of the development products and the grade coefficient of the occupied
land and included in the development cost of the project.
(3) The issued development products are accounted for according to the cost coefficient
sharing method.
(4) The development products and turnover houses temporarily leased for sale are amortized
averagely by stages according to the estimated service life of the company's similar fixed assets.
(5) If the public supporting facilities are completed earlier than the relevant development
products they shall be included in the development costs of the relevant development projects
according to the construction area distribution of the relevant development projects after the final
settlement of the completion of the public supporting facilities;If the public supporting facilities
are completed later than the relevant development products the public supporting facilities fee
shall be accrued for the relevant development products first and the cost of the relevant
29development products shall be adjusted according to the difference between the actual amount and
the accrued amount after the completion of the public supporting facilities.
3. Inventory system of inventory
The inventory system of inventory is a perpetual inventory system.
4. Amortization method of low-value consumables and packaging materials
(1) Low value consumables
Amortization is carried out in batches according to the number of times of use.
(2) Packaging
Amortization is carried out in batches according to the number of times of use.
5. Provision for inventory depreciation
On the balance sheet date inventory is measured at the lower of cost and net realisable value
and provision for inventory depreciation is made according to the difference between cost and net
realisable value.For inventory directly used for sale its net realized value shall be determined by
the estimated selling price of the inventory minus the estimated selling expenses and related taxes
in the normal process of production and operation;For the inventory that needs to be processed in
the normal process of production and operation its net realized value shall be determined by the
estimated selling price of the finished products produced minus the estimated cost to be incurred
at the time of completion the estimated selling expenses and relevant taxes and fees;On the
balance sheet date if there is a contract price agreement for some parts of the same inventory and
no contract price for other parts the net realisable value shall be determined respectively and
compared with its corresponding cost the amount of provision for inventory depreciation or
reversal shall be determined respectively.
（14） Long-term equity investments
1. Judgment of joint control and significant impact
According to the relevant agreements there is common control over an arrangement and the
relevant activities of the arrangement must be unanimously agreed by the participants sharing
control rights before making decisions which is recognized as joint control.It has the power to
participate in the decision-making of the financial and operating policies of the invested entity but
it is not able to control or jointly control the formulation of these policies with other parties which
is recognized as a significant impact.
2. Determination of investment cost
(1) If the merger of enterprises under the same control is formed and the merger party takes
the payment of cash the transfer of non cash assets the assumption of debts or the issuance of
equity securities as the merger consideration the share of the book value of the owner's equity of
the merged party in the consolidated financial statements of the final controller shall be regarded
as its initial investment cost on the merger date.The capital reserve is adjusted for the difference
between the initial investment cost of long-term equity investment and the book value of the
merger consideration paid or the total face value of the shares issued;If the capital reserve is
insufficient to offset the retained earnings shall be adjusted.The company realizes the long-term equity investment formed by the merger of enterprises
under the same control step by step through multiple transactions and judges whether it belongs to
a "package deal".If it belongs to a "package deal" each transaction shall be accounted for as a
transaction to obtain control.If it does not belong to the "package deal" on the merger date the
initial investment cost shall be determined according to the share of the book value of the net
30assets of the merged party in the consolidated financial statements of the final controller after the
merger.The capital reserve shall be adjusted for the difference between the initial investment cost
of the long-term equity investment on the merger date and the sum of the book value of the long-
term equity investment before the merger plus the book value of the new payment consideration
for the shares further obtained on the merger date;If the capital reserve is insufficient to offset the
retained earnings shall be adjusted.
(2) If the merger of enterprises not under the same control is formed the fair value of the
merger consideration paid on the acquisition date shall be regarded as its initial investment cost.The company realizes the long-term equity investment formed by the merger of enterprises
not under the same control step by step through multiple transactions and distinguishes between
individual financial statements and consolidated financial statements for relevant accounting
treatment:
1) In individual financial statements the sum of the book value of the equity investment
originally held and the new investment cost is regarded as the initial investment cost calculated
according to the cost method.
2) In the consolidated financial statements judge whether it belongs to a "package deal".If it
belongs to a "package deal" each transaction shall be accounted for as a transaction to obtain
control.If it is not a "package deal" the equity of the acquiree held before the acquisition date shall
be re measured according to the fair value of the equity on the acquisition date and the difference
between the fair value and its book value shall be included in the current investment income;If the
equity of the acquiree held before the acquisition date involves other comprehensive income under
the equity method the other comprehensive income related to it shall be transferred to the current
income on the acquisition date.However other comprehensive income arising from the re
measurement of net liabilities or changes in net assets of the defined benefit plan by the investee is
excluded.
(3) Except for the merger of enterprises: if it is obtained by paying cash the actual purchase
price paid shall be regarded as its initial investment cost;If it is obtained by issuing equity
securities the fair value of issuing equity securities shall be regarded as its initial investment
cost;If it is obtained by debt restructuring its initial investment cost shall be determined in
accordance with the accounting standards for enterprises NO.12 - debt restructuring;If it is
obtained through the exchange of nonmonetary assets its initial investment cost shall be
determined in accordance with the accounting standards for enterprises No.7 - exchange of
nonmonetary assets.
3. Subsequent measurement and profit and loss recognition method
The long-term equity investment controlled by the invested unit is accounted for by the cost
method;The long-term equity investment in joint ventures and joint ventures shall be accounted
for by the equity method.
4. Disposal of investment in subsidiaries through multiple transactions step by step until loss
of control
(1) Whether it belongs to the judgment principle of "package deal"
If the equity investment in a subsidiary is disposed of step by step through multiple
transactions until the control right is lost the company judges whether the step by step transaction
belongs to a "package transaction" by combining the terms of the transaction agreement of each
step of the step by step transaction the disposal consideration obtained respectively the object of
31selling equity the disposal method the disposal time and other information.The terms conditions
and economic impact of each transaction meet one or more of the following circumstances which
usually indicate that the multiple transactions belong to a "package deal":
1) These transactions were entered into simultaneously or with mutual influence in mind;
2) These deals as a whole can achieve a complete business outcome;
3) The occurrence of one transaction depends on the occurrence of at least one other
transaction;
4) A transaction is uneconomical on its own but it is economical when considered with other
transactions.
(2) Accounting treatment not belonging to "package deal"
1) Individual financial statements
The difference between the book value of the equity disposed of and the actual price obtained
shall be included in the current profit and loss.For the remaining equity if it still has a significant
impact on the invested entity or implements joint control with other parties it shall be accounted
for by the equity method;If the invested entity can no longer be controlled jointly controlled or
significantly affected it shall be accounted for in accordance with the relevant provisions of the
accounting standards for enterprises No.22 - recognition and measurement of financial instruments.
2) Consolidated financial statements
Before the loss of control the difference between the disposal price and the share of net
assets continuously calculated by the subsidiary from the acquisition date or the merger date
corresponding to the disposal of long-term equity investment shall be adjusted to the capital
reserve (capital premium). If the capital premium is insufficient to offset the retained earnings
shall be offset.When the control over the atomic company is lost the remaining equity shall be re measured
at its fair value on the date of loss of control.The difference between the sum of the consideration
obtained from the disposal of equity and the fair value of the remaining equity minus the share of
the net assets of the original subsidiary continuously calculated from the acquisition date or the
merger date calculated according to the original shareholding ratio shall be included in the
investment income of the current period when the control right is lost and the goodwill shall be
offset.Other comprehensive income related to the equity investment of the original subsidiary
shall be converted to the current investment income when the control right is lost.
(3) Accounting treatment of "package deal"
1) Individual financial statements
Each transaction is accounted for as a transaction that disposes of subsidiaries and loses
control.However the difference between each disposal price and the book value of the long-term
equity investment corresponding to the disposal of the investment before the loss of control is
recognized as other comprehensive income in individual financial statements and transferred to
the profits and losses of the current period when the control is lost.
2) Consolidated financial statements
Each transaction is accounted for as a transaction that disposes of subsidiaries and loses
control.However before the loss of control the difference between each disposal price and the
share of net assets of the subsidiary corresponding to the disposal of investment shall be
recognized as other comprehensive income in the consolidated financial statements and shall be
transferred to the profits and losses of the current period when the control is lost.
32（15） Investment properties
1. Investment real estate includes leased land use rights land use rights held and prepared for
transfer after appreciation and leased buildings.
2. Investment real estate is initially measured at cost followed by cost mode and depreciated
or amortized in the same way as fixed assets and intangible assets.
（16） Fixed assets
1. Recognition conditions of fixed assets
Fixed assets refer to tangible assets held for the production of commodities the provision of
labor services leasing or operation and management with a service life of more than one fiscal
year.Fixed assets are recognized when economic benefits are likely to flow in and costs can be
reliably measured.
2. Depreciation method of various fixed assets
Category Depreciation Depreciation Residual value
Annual
method life (years) rate (%) depreciationrate (%)
Houses and buildings straight-linemethod 30 5.00 3.17
Transport equipment straight-linemethod 6 5.00 15.83
Electronics and others straight-linemethod 5 5.00 19.00
（17） Construction in progress
1. The construction in progress shall be recognized when the economic benefits are likely to
flow in and the cost can be reliably measured.Construction in progress is measured at the actual
cost incurred before the asset reaches the expected usable state.
2. When the construction in progress reaches the expected usable state it shall be transferred
to fixed assets according to the actual cost of the project.If it has reached the expected usable state
but has not yet handled the final settlement of completion it shall be transferred to fixed assets
according to the estimated value first and then the original estimated value shall be adjusted
according to the actual cost after the final settlement of completion but the original depreciation
shall not be adjusted.
（18） Borrowing costs
1. Recognition principle of capitalization of borrowing costs
Borrowing costs incurred by the company that can be directly attributable to the purchase
construction or production of assets eligible for capitalization shall be capitalized and included in
the cost of related assets;Other borrowing costs are recognized as expenses when incurred and
included in the current profit and loss.
2. Capitalization period of borrowing costs
(1) When the borrowing costs meet the following conditions at the same time capitalization
begins: 1) asset expenditure has occurred;2) Borrowing costs have been incurred;3) The
acquisition and construction or production activities necessary to make the assets reach the
intended usable or saleable state have begun.
(2) If the assets eligible for capitalization are abnormally interrupted in the process of
acquisition construction or production and the interruption time exceeds three consecutive
months the capitalization of borrowing costs shall be suspended;Borrowing costs incurred during
the interruption period are recognized as current expenses until the acquisition and construction of
33assets or the resumption of production activities.
(3) When the assets purchased constructed or produced that meet the capitalization
conditions reach the predetermined usable or saleable state the capitalization of borrowing costs
shall stop.
3. Capitalization rate and capitalization amount of borrowing costs
Where a special loan is borrowed for the purchase and construction or production of assets
eligible for capitalization the amount of interest that should be capitalized shall be determined
based on the interest expenses actually incurred in the current period of the special loan (including
the amortization of discounts or premiums determined according to the effective interest rate
method) less the interest income obtained by depositing the unused loan funds in the bank or the
investment income obtained by temporary investment;If a general loan is occupied for the
acquisition and construction or production of assets that meet the capitalization conditions the
amount of interest that should be capitalized on the general loan shall be calculated and
determined according to the weighted average of the asset expenditure of the cumulative asset
expenditure exceeding the special loan multiplied by the capitalization rate of the general loan.
（19） Intangible assets
1. Intangible assets include software land use rights etc. which are initially measured at cost.
2. Intangible assets with limited service life shall be amortized systematically and reasonably
within the service life according to the expected realization mode of economic benefits related to
the intangible assets and if the expected realization mode cannot be reliably determined the
straight line method shall be used for amortization.The details are as follows:
Projects Service life and its determination basis Amortizationmethod
The expected realization mode of
software economic benefits related to intangible Straight line
assets 3-5 years method
3. Intangible assets with uncertain service life are not amortized and the company reviews
the service life of the intangible assets in each accounting period.
（20） Impairment of some long-term assets
For long-term equity investment investment real estate measured by cost model fixed assets
construction in progress right to use assets intangible assets with limited service life and other
long-term assets if there are signs of impairment on the balance sheet date the recoverable
amount is estimated.Intangible assets with uncertain goodwill and service life formed by business
combination regardless of whether there are signs of impairment are tested for impairment every
year.Goodwill is tested for impairment in combination with its related asset group or asset group
portfolio.If the recoverable amount of the above-mentioned long-term assets is lower than its book
value the provision for asset impairment shall be recognized according to the difference and
included in the current profit and loss.
（21） Long term deferred expenses
The accounting of long-term deferred expenses has been paid and the amortization period is
more than one year (excluding one year).Long-term deferred expenses are recorded according to
the actual amount incurred and amortized evenly by stages during the benefit period or within the
prescribed period.If the long-term deferred expense item can not benefit the subsequent
accounting period the amortized value of the item that has not yet been amortized will be
34transferred to the current profit and loss.
（22） Employee compensation
1. Employee remuneration includes short-term remuneration post employment benefits
termination benefits and other long-term employee benefits.
2. Accounting treatment of short-term remuneration
During the accounting period when employees provide services to the company the short-
term remuneration actually incurred shall be recognized as liabilities and included in the current
profit and loss or related asset costs.
3. Accounting treatment of post employment benefits
Post employment benefits are divided into defined contribution plans and defined benefit
plans.
(1) During the accounting period when employees provide services to the company the
amount payable calculated according to the defined contribution plan is recognized as a liability
and included in the current profit and loss or related asset costs.
(2) The accounting treatment of the defined benefit plan usually includes the following steps:
1) According to the expected cumulative welfare unit method unbiased and consistent
actuarial assumptions are used to estimate the relevant demographic variables and financial
variables measure the obligations arising from the establishment of the benefit plan and
determine the period of the relevant obligations.At the same time the obligations arising from the
establishment of the benefit plan are discounted to determine the present value of the obligations
of the establishment of the benefit plan and the current service cost;
2) If there are assets in the defined benefit plan the deficit or surplus formed by the present
value of the obligations of the defined benefit plan minus the fair value of the assets of the defined
benefit plan shall be recognized as the net liabilities or net assets of a defined benefit plan.If there
is a surplus in the defined benefit plan the net assets of the defined benefit plan shall be measured
at the lower of the surplus of the defined benefit plan and the upper limit of assets;
3) At the end of the period the cost of employee remuneration arising from the defined
benefit plan is recognized as service cost net interest on net liabilities or net assets of the defined
benefit plan and changes arising from remeasurement of net liabilities or net assets of the defined
benefit plan. Among them service cost and net interest on net liabilities or net assets of the
defined benefit plan are included in current profit and loss or related asset costs. Changes arising
from remeasurement of net liabilities or net assets of the defined benefit plan are included in other
comprehensive income and are not allowed to be reversed to profit and loss in subsequent
accounting periods but these amounts recognized in other comprehensive income can be
transferred within the scope of equity.
4. Accounting treatment of termination benefits
The termination benefits provided to employees shall be recognized as the employee
compensation liabilities arising from the termination benefits as soon as possible whichever is
earlier and shall be included in the current profit and loss: (1) when the company cannot
unilaterally withdraw the termination benefits provided due to the termination of labor relations
plans or layoffs; (2) When the company confirms the costs or expenses related to the
reorganization involving the payment of termination benefits.
5. Accounting treatment of other long-term employee benefits
Other long-term benefits provided to employees that meet the conditions of the defined
35contribution plan shall be accounted for in accordance with the relevant provisions of the defined
contribution plan;In addition other long-term benefits shall be accounted for in accordance with
the relevant provisions of the defined benefit plan. In order to simplify the relevant accounting
treatment the total net amount of employee compensation costs arising from them shall be
recognized as service costs net interest on net liabilities or net assets of other long-term employee
welfare and changes in net liabilities or net assets of other long-term employee welfare shall be
included in the current profit and loss or related asset costs.
（23）Accounting method of maintenance fund
According to the relevant provisions of the place where the development project is located
the maintenance fund shall be collected from the buyer or withdrawn by the company into the
development cost of the relevant development products when the development products are sold
(pre-sale) and shall be uniformly handed over to the management department of the maintenance
fund.
（24） Quality margin accounting method
The quality deposit shall be reserved from the project payment of the construction unit
according to the provisions of the construction contract.The maintenance fee incurred during the
warranty period of the development product shall be offset against the quality margin;Upon the
expiration of the agreed warranty period for the developed products the balance of the quality
deposit shall be returned to the construction unit.
（25） Revenue
1. Revenue recognition principles
On the commencement date of the contract the company evaluates the contract identifies
each individual performance obligation contained in the contract and determines whether each
individual performance obligation is performed within a certain period of time or at a certain point
in time.If one of the following conditions is met it belongs to the performance obligation within a
certain period of time otherwise it belongs to the performance obligation at a certain point of time:
(1) the customer obtains and consumes the economic benefits brought about by the company's
performance at the same time as the company's performance; (2) Customers can control the goods
under construction in the process of performance of the company; (3) The goods produced in the
process of performance by the company have irreplaceable uses and the company has the right to
collect payment for the performance part that has been completed so far during the whole contract
period.For the performance obligations performed within a certain period of time the company shall
recognize the revenue according to the performance progress during that period.When the
performance progress cannot be reasonably determined if the cost incurred is expected to be
compensated revenue shall be recognized according to the amount of cost incurred until the
performance progress can be reasonably determined.For the performance obligations performed at
a certain time point revenue is recognized when the customer obtains control of the relevant
goods or services.In judging whether the customer has obtained control of the goods the company
considers the following signs: (1) the company enjoys the current collection right in respect of the
goods that is the customer has the current payment obligation in respect of the goods; (2) The
company has transferred the legal ownership of the commodity to the customer that is the
customer has owned the legal ownership of the commodity; (3) The company has transferred the
36commodity in kind to the customer that is the customer has occupied the commodity in kind; (4)
The company has transferred the main risks and rewards of the ownership of the commodity to the
customer that is the customer has obtained the main risks and rewards of the ownership of the
commodity; (5) The customer has accepted the product; (6) Other signs that customers have
gained control of the goods.
2. Revenue measurement principles
(1) The company shall measure the income according to the transaction price apportioned to
each individual performance obligation.The transaction price is the amount of consideration the
company is expected to be entitled to receive as a result of the transfer of goods or services to
customers excluding payments received on behalf of third parties and payments expected to be
returned to customers.
(2) If there is a variable consideration in the contract the company shall determine the best
estimate of the variable consideration according to the expected value or the most likely amount
but the transaction price including the variable consideration shall not exceed the amount that will
most likely not be significantly reversed when the relevant uncertainties are eliminated.
(3) If there is a significant financing component in the contract the company shall determine
the transaction price according to the amount payable assuming that the customer will pay in cash
when obtaining control of the goods or services.The difference between the transaction price and
the contract consideration is amortized by the effective interest rate method during the contract
period.
(4) If the contract contains two or more performance obligations the company shall
apportion the transaction price to each individual performance obligation on the commencement
date of the contract in accordance with the relative proportion of the individual selling price of the
goods promised by each individual performance obligation.
3. Specific method of revenue recognition
(1) Specific methods for recognizing real estate development and sales revenue
The company's real estate sales business belongs to the performance obligation to be fulfilled
at a certain point in time.The realization of sales revenue shall be recognized when the
development products have been completed and accepted the sales contract has been signed and
the obligations stipulated in the contract have been fulfilled the entry notice or announcement has
been issued to the owner the real estate has been actually delivered to the owner or the delivery
date stipulated in the contract has expired the full house price has been charged and the relevant
costs incurred or to be incurred can be reliably measured.
(2) Provide specific methods for recognizing property service income
The company's provision of property management services belongs to the performance
obligation to be performed within a certain period of time and revenue is recognized according to
the performance progress.The company shall determine the performance progress of the services
according to the time schedule.
(3) Recognition method of engineering construction income
The company provides construction engineering services. As the customer obtains and
consumes the economic benefits brought about by the company's performance at the same time as
the company performs the contract and the company has the right to collect funds for the
performance part that has been completed so far during the whole contract period the company
regards it as the performance obligation to perform within a certain period of time and recognizes
37revenue according to the performance progress unless the performance progress cannot be
reasonably determined.The company determines the performance progress of providing services
in accordance with the investment method.If the performance progress cannot be reasonably
determined and the cost incurred by the company is expected to be compensated the revenue
shall be recognized according to the amount of cost incurred until the performance progress can be
reasonably determined.
(4) Other revenue recognition methods
Other income includes hotel operating income etc. for hotel room income as customers
obtain and consume the economic benefits brought about by the company's performance at the
same time as the company's performance the company regards it as a performance obligation to
be performed within a certain period of time and recognizes the income according to the
performance progress during the accounting period of providing services.For other income
according to the provisions of relevant contracts and agreements the realization of income is
recognized when the customer has obtained the control right of relevant commodities and the
relevant funds have been received or the right to collect.
（26） Contract acquisition cost and contract performance cost
If the incremental cost incurred by the company to obtain the contract is expected to be
recovered it shall be recognized as an asset as the cost of obtaining the contract.If the cost incurred by the company for the performance of the contract is not applicable to
the scope of relevant standards such as inventory fixed assets or intangible assets and the
following conditions are met at the same time it shall be recognized as an asset as the cost of
contract performance:
1. The cost is directly related to a current or expected contract including direct labor direct
materials manufacturing expenses (or similar expenses) costs clearly borne by the customer and
other costs incurred solely as a result of the contract;
2. The cost increases the company's resources for fulfilling its performance obligations in the
future;
3. The cost is expected to be recovered.
The company amortizes the assets related to the contract cost on the same basis as the
recognition of the revenue from goods or services related to the assets which is included in the
current profit and loss.If the book value of an asset related to the contract cost is higher than the remaining
consideration expected to be obtained due to the transfer of goods or services related to the asset
minus the estimated cost to be incurred the company shall make an impairment provision for the
excess and recognize it as an asset impairment loss.If the factors of impairment in the previous
period change after that so that the remaining consideration expected to be obtained for the
transfer of goods or services related to the asset minus the estimated cost to be incurred is higher
than the book value of the asset the original provision for asset impairment shall be reversed and
included in the current profit and loss but the book value of the asset after the reversal shall not
exceed the book value of the asset on the reversal date assuming that no provision for impairment
is made.
（27） Contract assets and liabilities
The company lists contract assets or contract liabilities in the balance sheet according to the
relationship between the performance of performance obligations and customer payments.The
38company shall present the contract assets and contract liabilities under the same contract at a net
amount after offsetting each other.The right of the company to receive consideration from customers unconditionally (that is
only depending on the passage of time) is listed as a receivable and the right to receive
consideration for goods that have been transferred to customers (depending on factors other than
the passage of time) is listed as a contract asset.The company lists the obligation to transfer goods to customers for consideration received or
receivable from customers as contract liabilities.
（28） Government subsidies
1. Government subsidies shall be recognized when the following conditions are met at the
same time: (1) the company can meet the conditions attached to government subsidies; (2)
Companies receive government subsidies.If the government subsidy is a monetary asset it shall be
measured according to the amount received or receivable.If the government subsidy is a
nonmonetary asset it shall be measured at fair value;If the fair value cannot be obtained reliably
it shall be measured at the nominal amount.
2. Judgment basis and accounting treatment method of government subsidies related to assets
Government documents stipulate that government subsidies used for the purchase and
construction or the formation of long-term assets in other ways are classified as government
subsidies related to assets.If the government documents are not clear the judgment shall be based
on the basic conditions that must be met to obtain the subsidy and the government subsidy related
to assets shall be based on the formation of long-term assets by purchase and construction or other
means.Government subsidies related to assets shall offset the book value of related assets or be
recognized as deferred income.If the government subsidies related to assets are recognized as
deferred income they shall be included in profits and losses by stages in a reasonable and
systematic manner within the service life of the relevant assets.Government subsidies measured in
nominal amounts are directly included in the current profits and losses.If the relevant assets are
sold transferred scrapped or damaged before the end of their service life the balance of relevant
deferred income that has not yet been allocated shall be transferred to the profits and losses of the
current period of asset disposal.
3. Judgment basis and accounting treatment method of government subsidies related to
income
Government subsidies other than asset related government subsidies are classified as income
related government subsidies.For government subsidies that include both asset related and income
related parts it is difficult to distinguish between asset related or income related government
subsidies which are classified as income related government subsidies as a whole.Government
subsidies related to income if used to compensate for related costs or losses in subsequent periods
shall be recognized as deferred income and shall be included in current profits and losses or offset
related costs during the period when related costs or losses are recognized; If it is used to
compensate the relevant costs or losses incurred it shall be directly included in the current profit
and loss or offset the relevant costs.
4. Government subsidies related to the daily business activities of the company shall be
included in other income or offset against related costs and expenses according to the essence of
economic business. Government subsidies unrelated to the daily activities of the company shall be
included in non operating income and expenditure.
395. Accounting treatment of discount interest on policy based preferential loans
(1) If the finance allocates the discount funds to the lending bank and the lending bank
provides loans to the company at the preferential policy interest rate the actual amount of loans
received shall be taken as the entry value of the loans and the relevant borrowing costs shall be
calculated according to the principal of the loans and the preferential policy interest rate.
(2) If the finance allocates the discount funds directly to the company the corresponding
discount will be offset against the relevant borrowing costs.
（29） Deferred income tax assets and deferred income tax liabilities
1. According to the difference between the book value of assets and liabilities and their tax
basis (if the tax basis of items not recognized as assets and liabilities can be determined in
accordance with the tax law the difference between the tax basis and its book value) the deferred
income tax assets or deferred income tax liabilities are calculated and recognized according to the
applicable tax rate during the period when the assets are expected to be recovered or the liabilities
are settled.
2. The recognition of deferred income tax assets is limited to the taxable income that is likely
to be obtained to offset the deductible temporary differences.On the balance sheet date if there is
conclusive evidence that sufficient taxable income is likely to be obtained in the future to offset
the deductible temporary differences the deferred income tax assets not recognized in the
previous accounting periods shall be recognized.
3. On the balance sheet date the book value of deferred income tax assets shall be reviewed.
If it is likely that sufficient taxable income will not be available to offset the benefits of deferred
income tax assets in the future the book value of deferred income tax assets shall be written down.When it is likely to obtain sufficient taxable income the amount written down will be reversed.
4. The current income tax and deferred income tax of the company are included in the current
profit and loss as income tax expenses or income but do not include the income tax arising from
the following circumstances: (1) business merger; (2) Transactions or events directly recognized
in owner's equity.
5. When the following conditions are met at the same time the company will list the deferred
income tax assets and deferred income tax liabilities at the net amount after offset: (1) it has the
legal right to settle the current income tax assets and current income tax liabilities at the net
amount; (2) Deferred income tax assets and deferred income tax liabilities are related to the
income tax levied by the same tax collection and management department on the same taxpayer or
on different taxpayers but in the future during the period when each important deferred income
tax asset and deferred income tax liability are reversed the taxpayers involved intend to settle the
current income tax assets and current income tax liabilities at a net amount or obtain assets and
settle debts at the same time.
（30） Leasing
1. The company as tenant
On the beginning date of the lease term the company recognizes the lease with a lease term
of no more than 12 months and no purchase option as a short-term lease;Leases with lower value
when a single leased asset is a new asset are recognized as low value asset leases. If the company
sublets or expects to sublet the leased assets the original lease is not recognized as a low value
asset lease.For all short-term leases and low-value asset leases the company includes the amount of
40lease payments in the cost of related assets or current profit and loss on a straight line basis during
each period of the lease term.In addition to the above-mentioned short-term leases and low-value asset leases with
simplified treatment the company recognizes the right to use assets and lease liabilities for the
lease on the beginning date of the lease term.
(1) Right of use assets
The right to use assets are initially measured at cost which includes: 1) the initial
measurement amount of lease liabilities; 2) For the lease payment paid on or before the beginning
date of the lease term if there is a lease incentive the relevant amount of the lease incentive that
has been enjoyed shall be deducted; 3) Initial direct costs incurred by the tenant; 4) The cost
expected to be incurred by the lessee for the demolition and removal of the leased assets the
restoration of the premises where the leased assets are located or the restoration of the leased
assets to the agreed state of the lease terms.The company depreciates the right to use assets according to the straight line method.If it can
be reasonably determined that the ownership of the leased assets will be obtained at the expiration
of the lease term the company shall make depreciation within the remaining service life of the
leased assets.If it is impossible to reasonably determine that the ownership of the leased assets can
be obtained at the expiration of the lease term the company shall make depreciation within the
shorter of the lease term and the remaining service life of the leased assets.
(2) Lease liabilities
On the beginning date of the lease term the company recognizes the present value of the
unpaid lease payment as a lease liability.When calculating the present value of the lease payment
the embedded interest rate of the lease shall be used as the discount rate. If the embedded interest
rate of the lease cannot be determined the incremental borrowing rate of the company shall be
used as the discount rate. The difference between the lease payment and its present value shall be
regarded as unrecognized financing expenses and the interest expenses shall be recognized at the
discount rate of the present value of the lease payment during each period of the lease term and
included in the current profit and loss. The amount of variable lease payments not included in the
measurement of lease liabilities is included in the current profit and loss when actually incurred.After the beginning date of the lease term when the substantial fixed payment changes the
estimated amount payable of the guarantee residual value changes the index or ratio used to
determine the lease payment changes the evaluation results or actual exercise of the purchase
option renewal option or termination option changes the company remeasures the lease liabilities
according to the present value of the changed lease payment and adjusts the book value of the
right of use assets accordingly. If the book value of the right of use assets has been reduced to zero
but the lease liabilities still need to be further reduced the remaining amount shall be included in
the current profit and loss.
2. The company as lessor
On the lease beginning date the company classifies leases that substantially transfer almost
all the risks and rewards related to the ownership of the leased assets as financial leases except for
operating leases.
(1) Operating leases
During each period of the lease term the company recognizes the lease receipts as rental
income according to the straight line method and the initial direct expenses incurred are
41capitalized and apportioned on the same basis as the recognition of rental income which are
included in the current profit and loss by stages.The variable lease payments obtained by the
company related to operating leases that are not included in the lease receipts are included in the
current profit and loss when actually incurred.
(2) Finance lease
On the beginning date of the lease term the company recognizes the financing lease
receivables according to the net amount of the lease investment (the sum of the unsecured residual
value and the present value of the lease receipts not yet received on the beginning date of the lease
term discounted at the embedded interest rate of the lease) and terminates the recognition of the
financing lease assets.During each period of the lease term the company calculates and recognizes
interest income according to the interest rate embedded in the lease.The amount of variable lease payments obtained by the company that are not included in the
measurement of net lease investment shall be included in the current profit and loss when actually
incurred.
（31） Changes in significant accounting policies and accounting estimates
1. Changes in significant accounting policies
During the reporting period the company did not change any important accounting policies.
2 changes in important accounting estimates
During the reporting period the company did not change important accounting estimates.
4、 Taxes
（1）Main taxes and tax rates
Taxes Tax basis Tax rate
The output tax shall be calculated on the basis
of the income from the sale of goods and
taxable services calculated in accordance with
value added tax the provisions of the tax law. After deducting 9% 6% 5% 3%
the input tax allowed to be deducted in the
current period the difference shall be the
value-added tax payable
Calculated and
Value-added amount arising from the transfer of paid according to
Land value-added state-owned land use rights and property rights of the excessive
tax aboveground buildings and other attached objects progressive tax rate
with compensation of value-added
amount
In case of ad valorem collection 1.2% of the
Property taxes residual value of the original value of the propertyafter deducting 30% at a time;If it is levied from 1.2% 12%
rent it shall be paid at 12% of the rental income
Urban maintenance
and construction Turnover tax actually paid 7%
tax
Education
surcharge Turnover tax actually paid 3%
Local education
surcharge Turnover tax actually paid 2%
Corporate income
tax Taxable income 25% 20% 16.5%
42Explanation of enterprise income tax rate of taxpayers with different tax rates
Name of taxpayer Income tax rate
Shenzhen huazhan Construction Supervision Co. Ltd. and
Shantou Special Economic Zone Songshan Real Estate Development 20%
Co. Ltd
Subsidiaries incorporated in Hong Kong 16.5%
Other taxpayers other than the above 25%
（2） Tax breaks
According to the announcement of the General Administration of Taxation of the Ministry of
Finance on preferential income tax policies for small and micro enterprises and individual
businesses (announcement No.12 of the General Administration of Taxation of the Ministry of
Finance in 2023) the part of the annual taxable income of small and micro profit enterprises that
does not exceed 1 million yuan shall be included in the taxable income at a reduced rate of 25%
and the enterprise income tax shall be paid at a tax rate of 20%.The implementation period is from
January 1 2023 to December 31 2027. The enterprise income tax rate of Shenzhen huazhan
Construction Supervision Co. Ltd. (hereinafter referred to as huazhan supervision) and
Shantou Special Economic Zone Songshan Real Estate Development Co. Ltd. (hereinafter
referred to as Shantou Songshan) subsidiaries of the company shall be subject to the
preferential tax rate of 20% for small and low profit enterprises.
5、 Notes to consolidated financial statement items
（1） Notes to consolidated balance sheet items
1. Monetary funds
(1) Details
Projects Closing balance Beginning balance
Cash on hand 19892.83 38975.98
bank deposit 284666632.21 526814068.83
Other monetary funds 2389680.55
Total 284686525.04 529242725.36
Including: total amount deposited abroad 4242440.12 4660706.04
(2) Other instructions
As of December 31 2025 the restricted funds in bank deposits were 5794604.17 yuan of
which 5674439.78 yuan was the deposit for the construction of public facilities projects in and
around the urban renewal project in Longgang District Shenzhen 70010.20 yuan was the
suspension of accounts and payments and 50154.19 yuan was the deposit for projects.
2. Trading financial assets
Projects Closing balance Beginning balance
43Projects Closing balance Beginning balance
Financial assets classified as at fair value through
profit or loss 1050256058.41 987801938.51
Among them: Fund 1050256058.41 987801938.51
Total 1050256058.41 987801938.51
3. Notes receivable
(1) Details
Projects Closing balance Beginning balance
Bank acceptance bill
Commercial acceptance bill 100000.00
Total 100000.00
(2) Provision for bad debts
Closing balance
Book balance Bad debt provision
Types
Proportion Provision book valuemoney (%) money Proportion(%)
Provision for bad debts by
portfolio
Including: bank acceptance bill
Commercial acceptance
bill
Total
4. Accounts receivable
(1) Aging
Aging Closing balance Beginning balance
Within 1 year 35522470.19 46635449.13
1-2 years 11264782.88 17841452.58
2-3 years 5972759.94 8345221.16
3-4 years 8220946.54 5644029.79
4-5 years 5252795.41 46903.69
More than 5 years 21125636.89 21078733.20
Total 87359391.85 99591789.55
Less: bad debt provision 42461308.11 42918994.03
44Aging Closing balance Beginning balance
Total book value 44898083.74 56672795.52
(2) Provision for bad debts
1) Category breakdown
Closing balance
Book balance Bad debt provision
Types
Provision book value
Amount Proportion(%) money Proportion(%)
Single provision for bad debts 24613872.70 28.18 24613872.70 100.00
Provision for bad debts by
portfolio 62745519.15 71.82 17847435.41 28.44 44898083.74
Total 87359391.85 100.00 42461308.11 48.61 44898083.74
(Continued)
Beginning balance
Book balance Bad debt provision
Types
money Proportion
Provision book value
(%) money Proportion(%)
Single provision for bad debts 24983383.25 25.09 24983383.25 100.00
Provision for bad debts by
portfolio 74608406.30 74.91 17935610.78 24.04 56672795.52
Total 99591789.55 100.00 42918994.03 43.09 56672795.52
2) Important accounts receivable with single provision for bad debts
Company Beginning balance Closing balance
name Book balance Bad debt Book balance Bad debt Provision Basis ofprovision provision ratio (%) provision
Agent import Not
and export
business 11574556.00 11574556.00 11574556.00 11574556.00 100.00
expected
to be
payment recovered
Long term Not
uncollected 10084109.60 10084109.60 10084109.60 10084109.60 100.00 expected
house sales to berecovered
Accounts Not
receivable of
subsidiaries 2314755.46 2314755.46 2314755.46 2314755.46 100.00
expected
to be
suspended recovered
Other Not
customer 1009962.19 1009962.19 640451.64 640451.64 100.00 expected
payments to berecovered
Sub total 24983383.25 24983383.25 24613872.70 24613872.70 100.00
3) Accounts receivable with portfolio provision for bad debts
Closing balance
Projects
Book balance Bad debt provision Provision ratio (%)
Receivables from
other customer 62745519.15 17847435.41 28.44
45Closing balance
Projects
Book balance Bad debt provision Provision ratio (%)
portfolios
Sub total 62745519.15 17847435.41 28.44
4) Changes in bad debt reserves
Beginning Current change amountProjects balance Withdrawal Write Closing balanceProvision or reversal off other
Single
provision for 24983383.25 369510.55 24613872.70
bad debts
Provision for
bad debts by 17935610.78 88175.37 17847435.41
portfolio
Total 457685.92
42918994.0342461308.11
(4) Top 5 accounts receivable and contract assets
Proportion
Closing balance in the total Provision forbalance of bad debts of
accounts accounts
Company name receivable receivable and
Accounts and contract provision for
receivable Contract assets Sub total assets at the impairment ofend of the contract assets
period (%)
Shenzhen Hongteng
Investment
Management Co. Ltd 11789376.23 837624.28 12627000.51 10.52 12627000.51
Shenzhen Guangming
construction
engineering No. 1
Construction
Engineering Co. Ltd 1544468.13 7733431.57 9277899.70 7.73 662029.13
Shenzhen
Construction
Engineering Group
Co. Ltd 5974806.41 2980784.42 8955590.83 7.46 1409486.39
Jiangsu Huajian
Construction Co. Ltd.Shenzhen Branch 4308688.79 3624467.86 7933156.65 6.61 354132.67
Shenzhen Zhaoyang
Real Estate Co. Ltd 7650272.25 7650272.25 6.38 229508.17
Total 31267611.81 15176308.13 46443919.94 38.71 15282156.86
(5) Other instructions
As of December 31 2025 the factoring balance of accounts receivable transferred but not
derecognized was 7379890.15 yuan.
5. Advance payment
(1) Aging
46Closing balance Beginning balance
Provis Prov
Aging ion ision
Book balance Proportio for book value Book balance Proporti forn (%) book valueimpair on (%) impa
ment irment
Within 1
year 30809.83 97.54 30809.83 1100322.58 91.61 1100322.58
1-2 years 1159.00 0.10 1159.00
2-3 years
More than 3
years 778.62 2.46 778.62 99624.63 8.29 99624.63
Total 31588.45 100.00 31588.45 1201106.21 100.00 1201106.21
(2) Top 5 prepayments
Prepayment
Company name Book balance Proportion of
balance (%)
China Telecom Corporation Limited Shenzhen Branch 19679.83 62.30
Guangdong Jianye Testing and Identification Co. Ltd 11130.00 35.23
Shenzhen Shenlv International Tourism Development Co.Ltd 228.62 0.72
Other 550.00 1.74
Sub total 31588.45 100.00
6. Other receivables
(1) Nature and classification of payments
Nature of payment Closing balance Beginning balance
Portfolio of receivables from related parties 850579354.54 161393309.25
Portfolio of receivables from government
departments 165460.00 3019837.72
Employee reserve portfolio receivable 112443.24 533912.40
Collection and payment portfolio receivable 596591.68 787071.98
Other receivables portfolio 193464111.43 37783095.18
Total 1044917960.89 203517226.53
Less: bad debt provision 297017469.37 196079185.70
Total book value 747900491.52 7438040.83
(2) Aging
Aging Closing balance Beginning balance
Within 1 year 6291824.79 4132917.44
47Aging Closing balance Beginning balance
1-2 years 21982715.53 1542936.54
2-3 years 5885948.43 12060828.62
3-4 years 3267.40
4-5 years
More than 5 years 1010754204.74 185780543.93
Total 1044917960.89 203517226.53
Less: bad debt provision 297017469.37 196079185.70
Total book value 747900491.52 7438040.83
(3) Provision for bad debts
1) Category breakdown
Closing balance
Book balance Bad debt provision
Types
money Proportion
Provision book value
(%) money Proportion(%)
Single provision for bad debts 1037381783.48 99.28 296662485.14 28.60 740719298.34
Provision for bad debts by
portfolio 7536177.41 0.72 354984.23 4.71 7181193.18
Sub total 1044917960.89 100.00 297017469.37 28.42 747900491.52
(Continued)
Beginning balance
Book balance Bad debt provision
Types
money Proportion
Provision book value
(%) money Proportion(%)
Single provision for bad debts 190176205.84 93.44 189807225.64 99.81 368980.20
Provision for bad debts by
portfolio 13341020.69 6.56 6271960.06 47.01 7069060.63
Sub total 203517226.53 100 196079185.70 96.35 7438040.83
2) Other receivables with important single provision for bad debts
Company Beginning balance Closing balance
name Book balance Bad debtprovision Book balance
Bad debt Provision Basis of
provision ratio (%) provision
Guangdong
Jianbang
group
(Huiyang) Not
Industrial Co.Ltd. 843296961.67 102965447.05 12.21
expected
to be
(hereinafter recovered
referred to as
Jianbang
company)
48Company Beginning balance Closing balance
name Book balance Bad debt Book balance Bad debt Provision Basis ofprovision provision ratio (%) provision
Great Wall Not
(Vancouver) 89035748.07 89035748.07 89035748.07 89035748.07 100.00 expected
Inc to berecovered
Not
Baili Co. Ltd 19393335.84 19393335.84 19363348.69 19363348.69 100.00 expectedto be
recovered
Burkton Not
Australia 12559290.58 12559290.58 12559290.58 12559290.58 100.00 expected
Limited to berecovered
Guangdong
Huizhou Not
Luofushan
mineral water 10465168.81 10465168.81 10465168.81 10465168.81 100.00
expected
to be
beverage Co. recovered
Ltd
Xi'an Xinfeng Not
Property
Trading Co. 8419205.19 8419205.19 8391333.18 8391333.18 100.00
expected
to be
Ltd recovered
Shenzhen
Shenxi Not
building 7660529.37 7660529.37 7660529.37 7660529.37 100.00 expected
decoration to be
company recovered
Beijing
Shenfang Not
Property 6905673.69 6533817.09 6905673.69 6533817.09 94.62 expected
Management to be
Co. Ltd recovered
Not
Baoan mall 6343030.65 6343030.65 6343030.65 6343030.65 100.00 expectedto be
recovered
Shenzhen Not
Nanyang 3168721.00 3168721.00 3168721.00 3168721.00 100.00 expected
Hotel Co. Ltd to berecovered
Shenzhen Not
Runhua Auto
Trading 3072764.42 3072764.42 3072764.42 3072764.42 100.00
expected
to be
Company recovered
Shenzhen Not
local building 3000000.00 3000000.00 3000000.00 3000000.00 100.00 expectedmaterials to be
company recovered
Not
Junxinhe 2800000.00 2800000.00 2800000.00 2800000.00 100.00 expectedto be
recovered
Harbin Power
District Xinle Not
feed 1970000.00 1970000.00 1970000.00 1970000.00 100.00 expected
processing to be
factory recovered
Not
Simo 1868735.45 1868735.45 1868735.45 1868735.45 100.00 expectedto be
recovered
49Company Beginning balance Closing balance
name Book balance Bad debtprovision Book balance
Bad debt Provision Basis of
provision ratio (%) provision
Sub total 176662203.07 176290346.47 1019901305.58 279197934.36 27.37
3) Other receivables with portfolio provision for bad debts
Closing balance
Portfolio name
Book balance Bad debt provision Provision ratio (%)
Portfolio of receivables
from related parties 854095.27
Portfolio of receivables
from government 165460.00
departments
Employee reserve portfolio
receivable 615652.06
Collection and payment
portfolio receivable 1487672.34 72605.97 4.88
Other receivables portfolio 4413297.74 282378.26 6.40
Sub total 7536177.41 354984.23 4.71
(4) Changes in bad debt reserves
Stage 1. Stage 2. Stage 3.Expected credit
Projects Next 12 months
Expected credit loss for the
Expected credit loss for the whole whole duration
Total
loss duration (no credit (creditimpairment) impairment has
occurred)
Beginning balance 209559.52 857709.31 195011916.87 196079185.70
Beginning balance
in current period —— —— ——
--Move to phase 2
--Move to phase 3
--Back to phase 2
--Back to phase 1
Current provision 101818165.64 101818165.64
Recovered or
reversed in the 55149.32 489460.51 544609.83
current period
Current write off
Other changes -335272.14 -335272.14
Closing balance 154410.20 32976.66 296830082.51 297017469.37
Provision ratio for
bad debt reserves
at the end of the 2.45 2.65 28.61 28.42
period (%)
50(5) Top 5 other receivables
Proporti
Book balance at on inCompany Nature of balance Bad debt
name payment the end of the Aging of other provision at theperiod receivabl end of the period
es (%)
Within
1 year
years
Jianbang Related party 2-3current account 843296961.67 years 80.70 102965447.05
and
more
than 5
years
Great Wall Related party More
(Vancouver) Inc current account 89035748.07 than 5 8.52 89035748.07years
Baili Co. Ltd Related party
More
current account 19363348.69 than 5 1.85 19363348.69years
Burkton More
Australia Related party
Limited current account
12559290.58 than 5 1.20 12559290.58
years
Guangdong
Huizhou
Luofushan Related party More
mineral water current account 10465168.81 than 5 1.00 10465168.81
beverage Co. years
Ltd
Sub total 974720517.82 93.28 234389003.20
7. Inventory
(1) Details
Project Closing balance Beginning balance
s Book balance Depreciation Depreciationreserve book value Book balance reserve book value
developm
ent cost 28291908.11 28291908.11 2276063206.65 711787110.18 1564276096.47
Develop
products 1125583917.83 54580338.25 1071003579.58 2127137511.58 54807711.11 2072329800.47
Inventory 103023.47 38891.91 64131.56 273224.31 38891.91 234332.40
Total 1153978849.41 54619230.16 1099359619.25 4403473942.54 766633713.20 3636840229.34
(2) Inventory depreciation reserve
1) Details
Increase in
current period Decrease in current period Closing balanceProjects Beginning balance Provis
ion other
Reversal or
write off Others [note]
development
cost 711787110.18 711787110.18
51Increase in
current period Decrease in current period Closing balanceProjects Beginning balance Provis other Reversal orion write off Others [note]
Develop
products 54807711.11 227372.86 54580338.25
Inventory 38891.91 38891.91
Total 766633713.20 227372.86 711787110.18 54619230.16
[note] Jianbang company was taken over by the bankruptcy administrator for bankruptcy
liquidation on November 30 2025 and will no longer be included in the scope of consolidation
from November 30 2025. The provision for inventory depreciation will decrease with the release
of Jianbang company.
2) The specific basis for determining the net realisable value and the reasons for the reversal
or write off of inventory depreciation reserves in the current period
Reversal of
inventory Write off inventory
Projects Determining net realisable value depreciationSpecific basis depreciationReasons for Reasons for
preparation preparation
The net realizable
The estimated selling price of value of inventory Inventory
development inventory minus the estimated with provision for consumption/sale with
cost cost to be incurred at completion inventory provision forthe estimated selling expenses depreciation in inventory depreciation
and related taxes previous periods in the current period
increased
The net realisable value is The net realizable
determined by the amount of the value of inventory Inventory
Develop estimated selling price of the with provision for consumption/sale with
products relevant developed products inventory provision forminus the product cost the depreciation in inventory depreciation
estimated selling expenses and previous periods in the current period
the relevant taxes and fees increased
The net realisable value is The net realizable
determined by the amount of the value of inventory Inventory
estimated selling price of the with provision for consumption/sale with
Inventory relevant inventory goods minus inventory provision for
the cost of the products the depreciation in inventory depreciation
estimated selling expenses and previous periods in the current period
the relevant taxes and fees increased
(3) Capitalization of borrowing costs
Included in closing balance Interest Calculation standard and
Projects Capitalization amount of capitalization rate basis of capitalization
borrowing costs (%) amount
Guangming Calculated according to the
Li 2206417.88 4.06 interest rate stipulated in theloan contract
Sub total 2206417.88 4.06
(4) Other instructions
1) Inventory development costs
Provision for
entry name Start Estimat Estimated Beginning balance Closing balancetime ed time total depreciation at the
52for investment end of the period
complet (10000
ion yuan)
Lin Xinyuan 2021 300000.00 2247771298.55
Shantou
Xinfeng 28291908.10 28291908.11
tower
Sub total 300000.00 2276063206.65 28291908.11
2) Inventory - develop products
entry name Time for Beginning Increase in current Decrease in current Closing balance Closing decline
completio balance period period Price reserve
n
Guangming Li 2024 1432471630.58 3603133.08 971685098.89 464389664.77
Tianyuewan 28917964.91
phase II 2021 441400625.10 1979410.15 29915421.77 413464613.48
Tianyuewan
phase I 2017 191139379.80 6426489.82 184712889.98 24890553.23
Golden Leaf
Island Haitian 1997 39999534.04 960.31 40000494.35 771820.11
Pavilion
Tsui Lam Yuen 2018 7696703.10 816399.26 8513102.36
Yue King
Oriental 2014 6121027.07 6121027.07
Golden Leaf
Island phase 10 2010 5641278.54 57279.71 5698558.25
Golden Leaf
Island phase 11 2008 2222776.30 16234.22 2239010.52
Beijing Xinfeng
tower 304557.05 304557.05
Whampoa Estate
140000.00140000.00
Sub total 2127137511.58 6473416.73 1008027010.48 1125583917.83 54580338.25
8. Contract assets
(1) Details
Closing balance Beginning balance
Projects
Book balance Provision forimpairment book value Book balance
Provision for
impairment book value
Completed
and
unsettled 32613380.97 3578124.69 29035256.28 32059525.05 1170801.96 30888723.09
project
funds
Total 32613380.97 3578124.69 29035256.28 32059525.05 1170801.96 30888723.09
(2) Provision for impairment
Closing balance
Book balance Provision for impairment
Types
Proportion Provision book valuemoney (%) money Proportion(%)
53Provision for impairment by
portfolio 32613380.97 100.00 3578124.69 10.97 29035256.28
Total 32613380.97 100.00 3578124.69 10.97 29035256.28
1) Category breakdown
(Continued)
Beginning balance
Book balance Provision for impairment
Types
money Proportion
Provision book value
(%) money Proportion(%)
Provision for impairment by
portfolio 32059525.05 100.00 1170801.96 3.65 30888723.09
Total 32059525.05 100.00 1170801.96 3.65 30888723.09
2) Contract assets with portfolio provision for impairment
Closing balance
Projects
Book balance Provision forimpairment Provision ratio (%)
Construction mix 32613380.97 3578124.69 10.97
Sub total 32613380.97 3578124.69 10.97
(3) Changes in provision for impairment
Projects Beginning
Current change amount Closing
balance Provision Withdrawal balanceor reversal Write off other
Provision for
impairment 1170801.96 2407322.73 3578124.69
by portfolio
Total 1170801.96 2407322.73 3578124.69
9. Other current assets
(1) Details
Closing balance Beginning balance
Impa
Projects Impai irme
Book balance rment book value Book balance nt book value
ready read
y
Prepaid income tax 1310041.90 1310041.90 63654695.18 63654695.18
VAT prepaid 35023855.49 35023855.49 41955887.75 41955887.75
Advance land value-
added tax 27906656.73 27906656.73 28100310.83 28100310.83
Input tax to be
deducted 407250.18 407250.18 9375930.68 9375930.68
Contract acquisition
cost 6508438.39 6508438.39
Advance urban
construction tax and 1431668.71 1431668.71 4587785.46 4587785.46
surcharges
54Closing balance Beginning balance
Impa
Projects Impai irme
Book balance rment book value Book balance nt book value
ready read
y
other 53992.23 53992.23 8975.57 8975.57
Total 66133465.24 66133465.24 154192023.86 154192023.86
(2) Contract acquisition cost
Provision for
Projects Beginning Increase in Current write impairment in Closingbalance current period off the current balance
period
Guangming
Li 5110543.39 5110543.39
Lin Xinyuan 1397895.00 1397895.00
Sub total 6508438.39 6508438.39
10. Long-term equity investments
(1) Classification
Closing balance Beginning balance
Projects
Book balance Provision for Book Book balance Provision for Bookimpairment value impairment value
Investments in
joint ventures 19424671.47 19424671.47 19424671.47 19424671.47
Investments in
associates 32898465.09 32898465.09 32898465.09 32898465.09
Other equity
investments 167761564.39 167761564.39 167761564.39 167761564.39
Total 220084700.95 220084700.95 220084700.95 220084700.95
(2) Details
Beginning balance Increase and decrease in the current period
Investment
gains and Other
Investee Book Provision for Additional Reduce losses comprehensive
value impairment investments investment recognized Earnings
under the adjustment
equity method
Joint venture
Guangdong
Huizhou Luofushan
mineral water 9969206.09
beverage Co. Ltd
Fengkai Xinghua
Hotel 9455465.38
Sub total 19424671.47
Associates
Shenzhen ronghua
Electromechanical 1076954.64
55Beginning balance Increase and decrease in the current period
Investment
gains and Other
Investee Book Provision for Additional Reduce losses comprehensive
value impairment investments investment recognized Earnings
under the adjustment
equity method
Engineering Co.Ltd
Shenzhen Runhua
Auto Trading 1445425.56
Company
Dongyi Real Estate
Co. Ltd 30376084.89
Sub total 32898465.09
Other equity
investments
Baili Co. Ltd 201100.00
Burkton Australia 906630.00
Shenzhen shenfang
Department Store 10000000.00
Co. Ltd
Shantou Xinfeng
tower 58547652.25
Guangdong
Fengkai Lianfeng
cement 56042236.04
manufacturing Co.Ltd
Jiangmen Xinjiang
Real Estate Co. Ltd 9037070.89
Xi'an Xinfeng
Property Trading 32840729.61
Co. Ltd
Sub total 167761564.39
Total 220084700.95
(Continued)
Increase and decrease in the current period Closing balance
Declaration
Investee Other equity of cash Provision for Provision for
changes dividends impairment Other Book value impairment
or profits
Joint venture
Guangdong
Huizhou
Luofushan 9969206.09
mineral water
beverage Co. Ltd
Fengkai Xinghua
Hotel 9455465.38
Sub total 19424671.47
Associates
56Increase and decrease in the current period Closing balance
Declaration
Investee Other equity of cash Provision for Other Book value Provision forchanges dividends impairment impairment
or profits
Shenzhen ronghua
Electromechanical
Engineering Co. 1076954.64
Ltd
Shenzhen Runhua
Auto Trading 1445425.56
Company
Dongyi Real
Estate Co. Ltd 30376084.89
Sub total 32898465.09
Other equity
investments
Baili Co. Ltd 201100.00
Burkton Australia 906630.00
Shenzhen
shenfang
Department Store 10000000.00
Co. Ltd
Shantou Xinfeng
tower 58547652.25
Guangdong
Fengkai Lianfeng
cement 56228381.64
manufacturing
Co. Ltd
Jiangmen
Xinjiang Real 9037070.89
Estate Co. Ltd
Xi'an Xinfeng
Property Trading 32840729.61
Co. Ltd
Sub total 167761564.39
Total 220084700.95
[note] in other equity investments the equity of subsidiaries not included in the scope of
consolidation of the company is accounted for. This subsidiary may have completed the revocation
procedures but the company has not written off its long-term equity investment or stopped
operating many years ago and the company has no entity so the company has been unable to
effectively control it.See Note 6 for details
11. Investment in other equity instruments
Increase and decrease in the current period
Gains and losses
Projects Beginning Additional Reduce included in otherbalance
investments investment comprehensive otherincome in the
current period
Shantou
small and 14697341.18 -125829.37
57Increase and decrease in the current period
Gains and losses
Projects Beginningbalance Additional Reduce
included in other
investments investment comprehensive otherincome in the
current period
medium-
sized
enterprise
financing
guarantee
Co. Ltd
Total 14697341.18 -125829.37
(Continued)
Dividend
income Gains and losses included in
Projects Closing balance recognized in other comprehensive income at
the current the end of the period
period
Shantou small and
medium-sized
enterprise financing 14571511.81 778495.00 6282876.24
guarantee Co. Ltd
Total 14571511.81 778495.00 6282876.24
12. Investment properties
Projects Houses andbuildings land use right Total
Book value
Beginning balance 1042937072.97 110807339.45 1153744412.42
Increase in current
period 33326036.91 33326036.91
1) Outsourcing
2) Inventory transfer
in 33326036.91 33326036.91
Decrease in current
period 1677368.76 2467728.73 4145097.49
1) Disposal 99150.45 99150.45
2) Other (exchange
rate changes) 1578218.31 2467728.73 4045947.04
Closing balance 1074585741.12 108339610.72 1182925351.84
Accumulated depreciation
and amortization
Beginning balance 532826612.47 532826612.47
Increase in current
period 25664684.19 25664684.19
58Projects Houses andbuildings land use right Total
1) Provision or
amortization 25664684.19 25664684.19
2) Other (exchange
rate changes)
Decrease in current
period 1167907.29 1167907.29
1) Disposal 90316.76 90316.76
2) Other (exchange
rate changes) 1077590.53 1077590.53
Closing balance 557323389.37 557323389.37
Provision for impairment
Beginning balance 14047929.59 90944753.82 104992683.41
Increase in current
period
1) Provision
Decrease in current
period 2025380.11 2025380.11
1) Disposal
2) Other (exchange
rate changes) 2025380.11 2025380.11
Closing balance 14047929.59 88919373.71 102967303.30
book value
Closing book value 503214422.16 19420237.01 522634659.17
Beginning book value 496062530.91 19862585.63 515925116.54
13. Fixed assets
Projects Houses and buildings Transport equipment Electronics andothers Total
Book value
Beginning balance 99967911.10 7491729.61 8345607.75 115805248.46
Increase in current
period - 572220.99 572220.99
1) Purchase 572220.99 572220.99
2) Other increases
Decrease in
current period 332006.34 337241.00 463752.98 1133000.32
1) Disposal or
scrapping 332006.34 337241.00 176879.56 846126.90
2) Other decrease 286873.42 286873.42
59Projects Houses and buildings Transport equipment Electronics andothers Total
Closing balance 99635904.76 7154488.61 8454075.76 115244469.13
Accumulated
depreciation
Beginning balance 85851256.18 6053367.82 6411416.89 98316040.89
Increase in current
period 2141291.07 236905.80 478314.57 2856511.44
1) Provision 2141291.07 236905.80 478314.57 2856511.44
2) Other increases
Decrease in
current period 179611.33 303516.90 394855.42 877983.65
1) Disposal or
scrapping 179611.33 303516.90 169117.89 652246.12
2) Other decrease 225737.53 225737.53
Closing balance 87812935.92 5986756.72 6494876.04 100294568.68
Provision for
impairment
Beginning balance
Increase in current
period
1) Provision
2) Other increases
Decrease in
current period
1) Disposal or
scrapping
2) Other decrease
Closing balance
book value
Book value at the
end of the period 11822968.84 1167731.89 1959199.72 14949900.45
Beginning book
value 14116654.92 1438361.79 1934190.86 17489207.57
14. Construction in progress
(1) Details
Closing balance
Project name Provision
Book balance for book value
impairment
Restoration and renovation of shenfang
Plaza Heliport 398222.67 398222.67
Renovation project of atrium elevator in
shenfang Plaza podium 173600.00 173600.00
60Closing balance
Project name Provision
Book balance for book value
impairment
Total 571822.67 571822.67
(2) Increase and decrease of construction in progress
Other
Project name Beginning
Increase in Current
balance current transfer in
decrease in Closing
period fixed assets the current balanceperiod
Restoration and
renovation of
shenfang Plaza 398222.67 398222.67
Heliport
Renovation project of
atrium elevator in
shenfang Plaza 173600.00 173600.00
podium
Total 571822.67 571822.67
15. Intangible assets
Projects software Total
Book value
Beginning balance 2192000.00 2192000.00
Increase in current period
1) Purchase
Decrease in current period
1) Disposal
Closing balance 2192000.00 2192000.00
Accumulated amortization
Beginning balance 2192000.00 2192000.00
Increase in current period
1) Provision
Decrease in current period
1) Disposal
Closing balance 2192000.00 2192000.00
Provision for impairment
Beginning balance
61Projects software Total
Increase in current period
1) Provision
Decrease in current period
1) Disposal
Closing balance
book value
Book value at the end of the period
Beginning book value
16. Long term deferred expenses
Projects Beginning
Increase in
balance current
Current Other Closing
period amortization decrease balance
Renovation
fee 1578307.83 761576.34 724200.25 1615683.92
Others 141603.89 59001.60 82602.29
Total 1719911.72 761576.34 783201.85 82602.29 1615683.92
17. Deferred income tax assets and deferred income tax liabilities
(1) Deferred income tax assets not offset
Closing balance Beginning balance
Projects Deductible Deductible Deferred
Temporary Deferred Temporary Income tax
differences Income tax assets differences assets
Provision for
impairment of 17373070.56 4343267.64 17887164.32 4471791.08
assets
Deductible loss 9058968.76 2264742.19 34153954.30 8538488.58
Unrealized profit
from internal 78405738.36 19601434.58
transactions
Estimated
contract cost 3839130.81 959782.70
Total 26432039.32 6608009.83 134285987.79 33571496.94
(2) Deferred income tax liabilities not offset
Closing balance Beginning balance
Projects Taxable Deferred Taxable Deferred
Temporary Income tax Temporary Income tax
differences liabilities differences liabilities
62Closing balance Beginning balance
Projects Taxable Deferred Taxable Deferred
Temporary Income tax Temporary Income tax
differences liabilities differences liabilities
Interest not due 2778907.00 694726.75 2340498.77 585124.68
Changes in fair value
of investments in
other equity 2571511.84 642877.96 2697341.18 674335.30
instruments
Total 5350418.84 1337604.71 5037839.95 1259459.98
(3) Deferred income tax assets or liabilities presented at net amount after offset
Closing balance Beginning balance
Offset of After offset Offset of After offset
Projects deferred income Balance of deferred income Balance of
tax assets and deferred income tax assets and deferred income
liabilities tax assets or liabilities tax assets or
liabilities liabilities
deferred tax assets 469690.21 6138319.62 33571496.94
Deferred Tax Liability 469690.21 867914.50 1259459.98
(4) Details of unrecognized deferred income tax assets
Projects Closing balance Beginning balance
deductible temporary differences 1176975484.48 1313992914.93
Deductible loss 142018237.92 94399508.95
Total 1318993722.40 1408392423.88
(5) The deductible loss of unrecognized deferred income tax assets will expire in the
following year
Year Closing balance Beginning balance Note
20251629.25
2026346891.06346891.06
202748904614.3848904614.38
202818354716.2418354716.24
202924953841.5126791658.02
203049458174.73
Total 142018237.92 94399508.95
18. Assets with restricted ownership or use rights
(1) Asset constraints at the end of the period
Book balance at
Projects the end of the Book value at the limited
period end of the period type
Reasons for restrictions
63Book balance at
Projects the end of the Book value at the limited
period end of the period type
Reasons for restrictions
Public facilities projects
in and around the urban
Monetary
funds 5674439.78 5674439.78 Seizure
renewal project in
Longgang District
Shenzhen - construction
funds
Monetary
funds 50154.19 50154.19 Seizure Construction deposit
Monetary
funds 70010.20 70010.20 Seizure
Stop payments stop
accounts
Accounts
receivable 7379890.15 7158493.45 pledge
Pledge of short-term
loans
Total 13174494.32 12953097.62
(2) Restrictions on assets at the beginning of the period
Projects Beginning book Beginning book limitedbalance value type Reasons for restrictions
Construction funds for
public facilities projects
in and around the urban
Monetary funds 5817217.78 5817217.78 Seizure renewal project inLonggang District
Shenzhen;Land
reclamation cost of
Guangming Li project
Monetary funds 2306548.48 2306548.48 freeze Litigation freeze
Monetary funds 50155.58 50155.58 Seizure Construction deposit
Monetary funds 158549.08 158549.08 Seizure Stop payments stopaccounts
Accounts 4918250.30 4770702.79 pledge Pledge of short-termreceivable loans
Litigation
inventory 234599800.76 161509611.70 preservati Supplier litigation
on preservation
Investment
properties 137329055.83 38505029.10 mortgage Mortgage on borrowings
Total 385179577.81 213117814.51
19. Short-term borrowings
Projects Closing balance Beginning balance
Accounts receivable factoring 50000.00 1563000.00
Total 50000.00 1563000.00
20. Accounts payable
(1) Details
64Projects Closing balance Beginning balance
Procurement of engineering materials and
construction 171738333.04 450147073.38
other 14341908.92
Total 171738333.04 464488982.30
(2) Important accounts payable with an account age of more than 1 year
Projects Closing balance Reasons for outstanding orcarry over
Shenzhen Guangming construction
engineering No. 1 Construction 69727732.09 Unsettled
Engineering Co. Ltd
Shenzhen Municipal Engineering
Corporation 16073112.33 Unsettled
Sub total 85800844.42
21. Advance receipts
Projects Closing balance Beginning balance
rent 722042.14 1398988.78
Total 722042.14 1398988.78
22. Contractual liabilities
(1) Details
Projects Closing balance Beginning balance
Advance receipts 15710437.24 1284864387.02
Advance payment 8115281.04 8705289.17
other 4574940.92 4576556.16
Total 28400659.20 1298146232.35
(2) Important contract liabilities with an account age of more than one year
Projects Closing balance Reasons for notcarrying forward
The handover of the
Guangming Li 2525427.51 house with theowner has not been
completed
Total 2525427.51
(3) Collection of pre-sale real estate of important projects
Beginning Time for Residentialentry name Closing balance balance completion signing ratio(%)
Guangming Li 2525427.51 1270976624.80 End of 2024 99.74
65entry name Closing balance Beginning Time for
Residential
balance completion signing ratio(%)
Sub total 2525427.51 1270976624.80
(4) Reasons for significant changes in the book value of contract liabilities during the current
period
Projects Change amount Reasons for change
Guangming Li 1268451197.29 Guangming Li will complete the househandover to the owner in 2025
Sub total 1268451197.29
23. Payroll payable
(1) Details
Projects Beginning Increase in Decrease inbalance current period current period Closing balance
Short-term
compensation 22443222.88 65878356.82 58653769.62 29667810.08
Post employment
benefits - defined 56145.41 7174258.36 7228564.97 1838.80
contribution plan
termination benefits 3837029.46 749335.46 3087694.00
Total 22499368.29 76889644.64 66631670.05 32757342.88
(2) Details of short-term compensation
Projects Beginning Increase in Decrease inbalance current period current period Closing balance
Salaries bonuses
allowances and 22165168.53 56498322.84 49113053.85 29550437.52
subsidies
Employee benefits 3124994.52 3124994.52
Social insurance
premiums 2500080.97 2500080.97
Including: medical
insurance premium 2098667.34 2098667.34
Industrial
injury insurance 205554.23 205554.23
Maternity
insurance 194891.40 194891.40
Employment
security for 968.00 968.00
the disabled
housing fund 2232140.90 2232140.90
Labor union funds and
employee education 278054.35 1411985.20 1572666.99 117372.56
funds
Short-term paid
absences 92125.08 92125.08
Other short-term
compensation 18707.31 18707.31
66Projects Beginning Increase in Decrease inbalance current period current period Closing balance
Sub total 22443222.88 65878356.82 58653769.62 29667810.08
(3) Details of defined contribution plan
Projects Beginning Increase in Decrease in Closingbalance current period current period balance
Basic pension 6505753.23 6505753.23
Unemployment insurance
premiums 354846.59 354846.59
Enterprise annuity payment 56145.41 313658.54 367965.15 1838.80
Sub total 56145.41 7174258.36 7228564.97 1838.80
24. Taxes payable
Projects Closing balance Beginning balance
value added tax 937306.31 1926338.10
Corporate income tax 16169391.23 15240318.16
Withholding and paying individual income tax 2139885.12 2614360.35
Urban maintenance and construction tax 1336686.83 1231330.83
Land value-added tax 4645184.15 4645184.15
Property taxes 537531.44 352632.19
Education surcharge 577466.85 868224.47
Local education surcharge 368675.16 546470.88
other 209955.49 129950.88
Total 26922082.58 27554810.01
25. Other accounts payable
(1) Details
Projects Closing balance Beginning balance
Interest payable 16535277.94 16535277.94
Other accounts payable 127745131.22 544481375.23
Total 144280409.16 561016653.17
(2) Interest payable
1) Details
Projects Closing balance Beginning balance
67Projects Closing balance Beginning balance
Interest on loans from non-financial institutions
(interest payable to parent company) 16535277.94 16535277.94
Sub total 16535277.94 16535277.94
2) Important overdue interest payment
Borrower Overdueamount Overdue reason
Shenzhen Investment Holding Co.Ltd 16535277.94 Unpaid
Sub total 16535277.94
(3) Other accounts payable
Projects Closing balance Beginning balance
Non related party current account 26581817.09 177773291.96
Related party transactions 9065673.97 234015438.99
deposit 23487225.44 25941548.11
other 68610414.72 106751096.17
Sub total 127745131.22 544481375.23
26. Non current liabilities due within one year
Projects Closing balance Beginning balance
Long-term loans due within one year 33888347.83
Total 33888347.83
27. Other current liabilities
Projects Closing balance Beginning balance
Tax on sales to be transferred 235112.72 114948818.17
Accounts receivable factoring 7329890.15 3355250.30
Total 7565002.87 118304068.47
28. Long-term borrowings
Projects Closing balance Beginning balance
Mortgages 96162025.65
Less: long-term loans due within one year 33888347.83
Total 62273677.82
6829. Share capital
Increase or decrease in the current period
(decrease expressed by "-")
Proje
cts Beginning balance
issue
New Divide Provident oth Sub Closing balance
share nd fund
s conversion
er total
Total
shares 1011660000.00 1011660000.00
30. Capital reserve
Projects Beginning Increase in Decrease in Closingbalance current period current period balance
Capital premium (equity
premium) 557433036.93 557433036.93
Other capital reserve 420811873.18 420811873.18
Total 978244910.11 978244910.11
31. Other comprehensive income
Current amount
Net after tax of other comprehensive income Less: othercomprehensive
income
Less: included included in the
in other previous
Projects Beginning comprehensive period isbalance Amount income in the Less: Attributable Attributable transferred toClosing balance
before income previous income to parent to minority retained
tax in the period and tax company shareholders income in the
current period transferred to expense after tax after tax current period
profit and loss (attributable to
in the current the parent
period company after
tax)
Other comprehensive
income that cannot be
reclassified into profit or 2439210.13 -125829.37
-
31457.34-94372.032344838.10
loss
Among them: re
measurement of
changes in
defined benefit
plans
Other
comprehensive
income that
cannot be
transferred to
profit or loss
under the equity
method
Changes in fair
value of
investments in 2439210.13 -125829.37 - -94372.03 2344838.10
other equity 31457.34
instruments
Changes in fair
value of
enterprise's own
credit risk
69Current amount
Net after tax of other comprehensive income Less: othercomprehensive
income
Less: included included in the
in other previous
Projects Beginning comprehensive period isbalance Amount income in the Less: Attributable Attributable transferred toClosing balance
before income previous income to parent to minority retained
tax in the period and tax company shareholders income in the
current period transferred to expense after tax after tax current period
profit and loss (attributable to
in the current the parent
period company after
tax)
Other comprehensive
income to be reclassified 20621206.18 1536756.74 349071.241187685.50 20970277.42
to profit or loss
Among them: other
comprehensive
income
convertible to
profit or loss
under equity
method
Changes in fair
value of other
creditor's rights
investments
Amount of
reclassification of
financial assets
into other
comprehensive
income
Provision for
credit impairment
of other creditor's
rights investment
Cash flow
hedging reserve
Translation
difference of
foreign currency 20621206.18 1536756.74 349071.241187685.50 20970277.42
financial
statements
Total other
comprehensive income 23060416.31 1410927.37
-
31457.34254699.211187685.5023315115.52
32. Surplus reserve
Projects Beginning Increase in Decrease inbalance current period current period Closing balance
Legal reserve 275253729.26 275253729.26
Total 275253729.26 275253729.26
33. Undistributed profit
Projects Current period Same period lastyear
Undistributed profit at the end of the previous period
before adjustment 1223893437.74 1400604385.39
Adjust the total undistributed profit at the beginning
of the period (increase+ decrease -)
Undistributed profit at the beginning of the later
period 1223893437.74 1400604385.39
70Projects Current period Same period lastyear
Plus: net profit attributable to owners of the
parent company in the current period 99956003.75 -176710947.65
Less: withdrawal of statutory surplus reserve
Common Stock dividends payable
Undistributed profit at the end of the period 1323849441.49 1223893437.74
（2） Notes to consolidated income statement items
1. Operating income/operating cost
(1) Details
Current period Same period last year
Projects
income cost income cost
Main business
income 1475508650.42 1066407099.14 399806208.89 329523182.30
Other business
income 7363648.94 3405345.60 7215982.55 2802468.00
Total 1482872299.36 1069812444.74 407022191.44 332325650.30
Among them:
revenue from
contracts with 1420214184.88 1028129256.31 337868729.90 290264756.49
customers
(2) Revenue breakdown
1) Revenue from contracts with customers is broken down by type of goods or services
Current period Same period last year
Projects
income cost income cost
real estate 1324656290.59 937154626.27 162523053.49 127086267.87
engineering
construction 81299490.77 82326326.57 160327744.72 154348805.43
other 14258403.52 8648303.47 15017931.69 8829683.19
Sub total 1420214184.88 1028129256.31 337868729.90 290264756.49
2) Revenue from contracts with customers is broken down by region of operation
Current period Same period last year
Projects
income cost income cost
Guangdong
Province 1419516215.79 1028129256.31 337173047.00 290264756.49
United States 697969.09 695682.90
Sub total 1420214184.88 1028129256.31 337868729.90 290264756.49
3) Revenue from contracts with customers is broken down by the time goods or services are
transferred
Projects Current period Same period lastyear
71Projects Current period Same period lastyear
Revenue recognized at a certain point 1324656290.59 162523053.49
Revenue is recognized in a certain period of time 95557894.29 175345676.41
Sub total 1420214184.88 337868729.90
(3) Information on performance obligations
Payments Types of
The nature of assumed by quality
Time for Important the goods the
Is it the the company assurance
Projects performance payment company
main that are provided by
terms undertakes to responsible expected to be the company
transfer person refunded to and related
customers obligations
After the
contract is
Selling When goods signed the
goods are delivered contract price
Commercial
housing yes nothing
Quality
shall be assurance
collected in
advance
When the
general Engineering
When service is constructionProvision of services are completed it propertyservices yes nothing nothingprovided shall be managementcharged and other
according to services
the contract
(4) The revenue recognized in the current period included in the book value of contract
liabilities at the beginning of the period is 1277707691.77 yuan.
2. Taxes and surcharges
Projects Current period Same period lastyear
Land value-added tax 2493584.64 2714249.05
Property taxes 10144167.53 9956557.84
Urban maintenance and construction tax 3728882.75 1012893.50
Education surcharge 1583420.73 411819.81
Local education surcharge 1073716.28 274953.45
Land use tax 1004517.36 1120370.46
Stamp duty and other taxes 1851122.87 1250438.60
Total 21879412.16 16741282.71
3. Selling expenses
Projects Current period Same period lastyear
72Projects Current period Same period lastyear
Sales agent fees and commissions 6225248.69 1863418.96
Employee compensation 5112278.69 3362219.19
Property management fee 3924137.90 3906657.98
cost of operation 192056.24 136489.27
Advertising fees 2815526.99 2488123.19
other 2505974.90 1407764.34
Total 20775223.41 13164672.93
4. Overhead
Projects Current period Same period lastyear
Employee compensation 59783269.03 48292124.93
Intermediary fees 3169937.43 6587170.53
Legal fees 834607.10 4504258.91
Business hospitality 114180.32 532812.45
Depreciation 2640488.36 3020894.71
Office expenses 739390.62 1634523.51
Repairs 147807.43 380818.94
Travel 40070.56 235772.33
Utilities 356140.75 395856.79
other 4679357.43 4534298.91
Total 72505249.03 70118532.01
5. Financial expenses
Projects Current period Same period lastyear
Interest expense 3760510.21 2586822.94
Less: interest income 3829111.01 7998718.28
Exchange gains and losses -1522796.04 -465656.39
Fees 371261.82 374804.61
Total -1220135.02 -5502747.12
736. Other income
Amount included
Same period in non recurringProjects Current period last year gains and lossesin the current
period
grants related to income 753298.54
Refund of handling fee for withholding
individual income tax 31652.46 86280.28
VAT plus or minus 2627.57
Total 31652.46 842206.39
7. Investment income
Projects Current period Same period lastyear
Long-term equity investment income accounted for
by equity method
Investment income from disposal of long-term
equity investment 136518.90 568863.59
Gains from loss of control -151858626.57
Investment income of trading financial assets during
the holding period
Dividend income from investment in other equity
instruments during the holding period 778495.00 777600.00
Total -150943612.67 1346463.59
8. Income from changes in fair value
Projects Current period Same period lastyear
Trading financial assets 16621332.22 18461736.59
Among them: income from changes in fair value
arising from financial assets designated to be
measured at fair value and whose changes are 16621332.22 18461736.59
included in the current profit and loss
Total 16621332.22 18461736.59
9. Credit impairment losses
Projects Current period Same period lastyear
Bad debt loss of accounts receivable 457485.01 -8437909.31
Bad debt losses on other receivables -2544245.75 -515171.21
Total -2086760.74 -8953080.52
7410. Loss on impairment of assets
Projects Current period Same period lastyear
Inventory depreciation loss -374863314.48
Impairment loss on contract assets -2407322.73 -324845.35
Total -2407322.73 -375188159.83
11. Income from disposal of assets
Included in current
Projects Current period Same period last non recurringyear Amount of profit or
loss
Income from disposal of fixed
assets -5767.73 195840.20 -5767.73
Total -5767.73 195840.20 -5767.73
12. Non operating income
Included in current
Projects Current period Same period last non recurringyear Amount of profit or
loss
Gains from damage and
scrapping of non current assets 1475.00 1475.00
Fines default income 923846.06 2170800.00 923846.06
Others 18312.66 243877.03 18312.66
Total 943633.72 2414677.03 943633.72
13. Non operating expenses
Same period last Included in current nonProjects Current period year recurringAmount of profit or loss
External donations 1614.33 31795.00 1614.33
Loss on damage and scrapping
of non current assets 35685.54 23829.37 35685.54
Late fees and liquidated
damages 212363.60
other 32.50 32.50
Total 37332.37 267987.97 37332.37
14. Income tax expense
75(1) Details
Projects Current period Same period lastyear
Current income tax expense 61525217.02 -4272520.91
Deferred Income Tax Expense 157641.58 894975.30
Total 61682858.60 -3377545.61
(2) Accounting profit and income tax expense adjustment process
Projects Current period Same period lastyear
Total profit 161235927.20 -380973503.91
Income tax expense calculated at the applicable tax
rate of the parent company 40308981.80 -95243375.98
Impact of different tax rates on subsidiaries 132546.07 465029.57
Effect of adjusting income tax in previous periods -10666216.42 -6533032.37
Impact of non taxable income -4809834.15
Impact of non deductible costs expenses and losses 3748571.21 251199.32
Impact of using deductible losses of unrecognized
deferred income tax assets in the previous period -99497.07 -1349670.39
Impact of deductible temporary differences or
deductible losses of deferred income tax assets not 28258473.01 103842138.39
recognized in the current period
Income tax expense 61682858.60 -3377545.61
15. Net after tax of other comprehensive income
The net amount of other comprehensive income after tax is detailed in note 5 (1) 31 to the
financial statements.
（3） Notes to consolidated cash flow statement items
1. Cash received or paid related to important investment activities
(1) Cash received from investment income
Projects Current period Same period lastyear
Dividend income from investment in other equity
instruments 778495.00 777600.00
Sub total 778495.00 777600.00
(2) Net cash recovered from disposal of fixed assets intangible assets and other long-term
assets
Projects Current period Same period lastyear
Disposal of long-term assets 162736.20 519930.21
Sub total 162736.20 519930.21
76(3) Net cash received from disposal of subsidiaries and other business units
Projects Current period Same period lastyear
Cash or cash equivalents received from subsidiaries
in the current period
Among them: Shenzhen Property Management
Co. Ltd
Less: cash and cash equivalents held by the company
on the date of loss of control 58433.25
Among them: Shenzhen Property Management
Co. Ltd
Jianbang 58433.25
Add: cash or cash equivalents received in the current
period from disposal of subsidiaries in previous 136518.90 568863.59
periods
Among them: Shenzhen Property Management
Co. Ltd 136518.90 568863.59
Net cash received from disposal of subsidiaries 78085.65 568863.59
(4) Cash paid for the purchase and construction of fixed assets intangible assets and other
long-term assets
Projects Current period Same period lastyear
Purchase of fixed assets 572220.99 739401.36
Long term deferred expenses 761576.34 807914.47
Expenditure on Construction in progress 571822.67
Sub total 1905620.00 1547315.83
2. Other cash received or paid related to operating activities investment activities and
financing activities
(1) Other cash received related to operating activities
Projects Current period Same period lastyear
Interest income 3829111.01 7559725.59
Current and other 973811.18 8330076.43
Total 4802922.19 15889802.02
(2) Other cash payments related to operating activities
Projects Current period Same period lastyear
Financial Fees 371261.82 374804.61
Cash paid operating expenses 25259295.06 28607966.11
Current and other 27171214.96 22960703.60
Total 52801771.84 51943474.32
(3) Other cash received related to investment activities
77Projects Current period Same period lastyear
Fund wealth management products 1114167212.32
Total 1114167212.32
(4) Other cash payments related to investment activities
Projects Current period Same period lastyear
Fund wealth management products 1160000000.00 90000000.00
Total 1160000000.00 90000000.00
3. Supplementary information to cash flow statement
Supplementary information Current period Same period last year
(1) Adjusting net profit to cash flow from operating
activities:
Net profit 99553068.60 -377595958.30
Plus: provision for impairment of assets 2407322.73 375188159.83
Provision for credit impairment 2086760.74 8953080.52
Depreciation of fixed assets depreciation of right
of use assets depletion of oil and gas assets 28521195.63 28234946.71
depreciation of productive biological assets
Amortization of intangible assets
Amortization of long term deferred expenses 783201.85 686525.85
Losses on disposal of fixed assets intangible
assets and other long-term assets (gains are 5767.73 -195840.20
represented with -)
Loss on scrapping of fixed assets (income
expressed with -) 34210.54 23829.37
Loss from changes in fair value (income is
represented with -) -16621332.22 -18461736.59
Financial expenses (income is represented with -) 3867783.17 2586822.94
Investment loss (income expressed with -) 150943612.67 -1346463.59
Decrease in deferred income tax assets (increase
expressed with -) 517729.72 2741314.32
Increase in deferred income tax liabilities
(decrease expressed with -) -360088.14 -1846339.02
Decrease in inventory (increase expressed with -) 967660785.97 -96487621.86
Decrease in operating receivables (increase
expressed with -) -752415765.38 -50483605.92
Increase in operating payables (decrease
expressed with -) -582303687.54 598936.15
other
Net cash flow from operating activities -95319433.93 -127403949.79
(2) Major investment and financing activities not involving
cash receipts and payments:
78Supplementary information Current period Same period last year
Debt to capital
Convertible corporate bonds due within one year
New right to use assets
(3) Net change in cash and cash equivalents:
Closing balance of cash 278891920.87 520910254.44
Less: Beginning balance of cash 520910254.44 859146413.35
Add: ending balance of cash equivalents
Less: Beginning balance of cash equivalents
Net increase in cash and cash equivalents -242018333.57 -338236158.91
4. Composition of cash and cash equivalents
(1) Details
Projects Closing balance Beginning balance
1) Cash 278891920.87 520910254.44
Including: cash on hand 19892.83 38975.98
Bank deposits ready for payment 278872028.04 518481597.91
Other monetary funds that can be used for payment at
any time 2389680.55
Central bank deposits available for payment
Interbank deposits
Interbank Funding
2) Cash equivalents
Among them: bond investment due within three months
3) Balance of cash and cash equivalents at the end of the
period 278891920.87 520910254.44
Among them: restricted use of cash by the parent company or
subsidiaries within the group
Cash equivalents
(2) Cash and cash equivalents held by the company with limited scope of use
Reasons for limited scope of
Projects Closing balance Beginningbalance use and reasons for cash andcash equivalents
Monetary funds 5794604.17 8332470.92 Litigation freezing marginand other regulated accounts
Sub total 5794604.17 8332470.92
5. Changes in liabilities related to financing activities
Projects Beginning Increase in current period Decrease in current period Closing balance
balance
79Cash Non cash
movements movements Cash movements
Non cash
movements
Short-term
borrowings 1563000.00 50000.00 1563000.00 50000.00
Long-term
loans
(including
long-term 96162025.65 96162025.65
loans due
within one
year)
Sub total 97725025.65 50000.00 96162025.65 1563000.00 50000.00
（4） Others
1. Foreign currency monetary items
Foreign currency
Projects balance at the end of Conversion Balance converted into RMB at
the period rate the end of the period
Monetary funds 4015874.15
Of which: US $ 30040.81 7.0288 211150.85
HKD 4212399.31 0.90322 3804723.30
Accounts receivable 327542.08
Of which: US $ 46600.00 7.0288 327542.08
Other receivables 18689770.43
Including: Hong Kong
dollars 20692378.86 0.90322 18689770.43
Other accounts
payable 21941821.60
Of which: US $ 722044.70 7.0288 5075107.79
HKD 18673981.77 0.90322 16866713.81
Accounts payable 142421.23
Of which: US $ 100.00 7.0288 702.88
HKD 156903.47 0.90322 141718.35
2. Leasing
(1) The company as tenant
1) The company's accounting policies for use rights assets are detailed in note 3 (30) to the
financial statements.
2) The company's accounting policies for short-term leases and low value asset leases are
detailed in note 3 (30) to the financial statements.The amount of short-term lease expenses and
low value asset lease expenses included in the current profit and loss is as follows:
Projects Current period Same period lastyear
Short-term rental 99475.70 56045.24
80Total 99475.70 56045.24
3) Current profit and loss and cash flow related to leasing
Projects Current period Same period lastyear
Interest expense on lease liabilities
Total cash outflows related to leases 99475.70 56045.24
4) The maturity analysis of lease liabilities and the corresponding liquidity risk management
are detailed in note 8 (2) to these financial statements.
(2) The company as lessor
1) Operating leases
1) Rental income
Projects Current period Same period lastyear
Rental income 62658114.48 69153461.54
Among them: income related to variable lease
payments not included in the measurement of lease
receipts
2) Operating lease assets
Projects Closing balance End of last year
Investment properties 522634659.17 515925116.54
Sub total 522634659.17 515925116.54
3) According to the lease contract signed with the lessee the undiscounted lease receipts to
be received in the future by the irrevocable lease
Remaining term Closing balance End of last year
Within 1 year 56116305.50 52670249.55
1-2 years 41138989.98 36475042.36
2-3 years 27878059.45 22511849.37
3-4 years 20246078.56 12694568.09
4-5 years 13037427.03 10772038.12
Five years later 1496990.34 8015870.44
Total 159913850.86 143139617.93
6、 Rights and interests in other entities
（1） Composition of enterprise groups
1. The company includes 12 subsidiaries such as Shenzhen shenfang group Longgang
Development Co. Ltd. and great wall real estate Co. Ltd. in the scope of consolidated financial
statements.
2. Basic information of important subsidiaries
81Unit: 10000 yuan
Principal Shareholding
place of ratio (%)
Name of subsidiary registeredcapital business
Nature of Acquisitio
and place of business direct indirec n method
registration t
Shenzhen shenfang
group Longgang
Development Co. 3000.00 Shenzhen Real estate 95.00 5.00 set up
Ltd
Great wall $500000 Unitedproperties States Real estate 70.00 set up
Shenzhen Haiyan Rent and
Hotel Co. Ltd 3000.00 Shenzhen management 68.10 31.90 set upservices
Shenzhen Zhentong
Engineering Co. 1000.00 Shenzhen Construction 73.00 27.00 set up
Ltd
Shenzhen huazhan
Construction eight
Supervision Co. hundred Shenzhen Construction 75.00 25.00 set up
Ltd
Shenzhen Lianhua
Enterprise Co. Ltd 1000.00 Shenzhen Construction 95.00 5.00 set up
1 million
Xinfeng Enterprise Hong Investment
Co. Ltd Kong Hong Kong and 100.00 set up
dollars management
Shenzhen shenfang
bonded trade Co. five Shenzhen Import and
Ltd hundred export trade
95.00 5.00 set up
Shenzhen Shenfang
Investment Co. 1000.00 Shenzhen Investment 90.00 10.00 set up
Ltd
10000 Investment
Hualin Co. Ltd HongKong Hong Kong and 100.00 set up
dollars management
Beijing Xinfeng
real estate $10
development and million Beijing Real estate 75.00 25.00 set up
Operation Co. Ltd
Shenzhen shenfang
Chuanqi Real
Estate 3000.00 Shenzhen Real estate 100.00 set up
Development Co.Ltd
(2) Other instructions
1) There are three subsidiaries of the company that have been suspended for a long time and
whose industrial and commercial registration has been revoked but not cancelled namely
Guangzhou Huangpu new estate real estate development Co. Ltd. and Xinfeng real estate
development and construction (Wuhan) Co. Ltd. two secondary subsidiaries held by Beijing
Xinfeng real estate development and Operation Co. Ltd. and Xinfeng real estate development and
82construction (Wuhan) Co. Ltd. these three subsidiaries are reported on the basis of non continuing
operations.
2) Jianbang company was liquidated on November 30 2025 and taken over by the
bankruptcy administrator which will no longer be included in the scope of consolidation from that
date.
（2） Changes in the scope of consolidation for other reasons
Decrease in consolidation scope
From the
Company Equity disposal Timing of equity Net assets at
beginning of the
name disposal disposal date period to thedisposal date
Net profit
Jianbang Receivership November 302025 55460144.68 -589075.49
[note] In November 2025 the company received the decision of Huizhou intermediate
people's Court of Guangdong Province ((2025) yue13po no.45-1) and the court ruled that
Jianbang company was bankrupt. According to the provisions of the accounting standards for
business enterprises Jianbang company is no longer included in the scope of the company's
consolidated financial statements.Based on the property survey and creditor's Rights Verification
of Jianbang company counted at the first creditor's meeting the company estimates the
recoverable amount of the remaining assets of Jianbang company with reference to the sales price
of real estate and land per unit area assessed by a third party and calculates the liquidation price
of creditor's rights attributable to the company. At the consolidated statement level the company
estimates the fair value of other receivables of Jianbang company as 742.9747 million yuan which
is recognized as receivables.The difference between the original book balance and the recoverable
amount of receivables offsets the investment income generated by the disposal of subsidiaries.
（3） Significant non-wholly-owned subsidiaries
1. Details
Minority
Name of sharehold
Less attributable in
the current period Minority shareholders
Minority
ers in the current period shareholders at thesubsidiary Sharehold Gains and losses of end of the period
ing ratio minority shareholders
Dividends declared Equity balance
Great wall properties 30.00% -98694.29 -22801466.23
Xinfeng Investment
Co. Ltd 45.00% -15574.61 -116172006.07
Bestway Properties
Limited 20.00% -19.24 -3870524.87
Jianbang 49.00% -288646.99
2. Main financial information of important non wholly-owned subsidiaries
(1) Assets and liabilities
Closing balance
Subsidiaries
name current assets Non current
Non
assets Total Assets current liabilities current Total liabilitiesliabilities
Great wall
properties 526052.05 19420237.01 19946289.06 111745358.13 111745358.13
Xinfeng
Investment 517.26 2292.80 2810.06 258164218.56 258164218.56
83Closing balance
Subsidiaries Non
name current assets Non currentassets Total Assets current liabilities current Total liabilitiesliabilities
Co. Ltd
Bestway
Properties 32812021.68 32812021.68
Limited
Jianbang
(Continued)
Subsidiar Beginning balance
ies Non current Non
name current assets assets Total Assets current liabilities current Total liabilitiesliabilities
Great
wall 334066.53 19862585.63 20196652.16 113755645.58 113755645.58
properties
Xinfeng
Investme
nt Co. 193038.35 36016.90 229055.25 259168553.63 259168553.63
Ltd
Bestway
Propertie 1084.11 1084.11 33634035.70 33634035.70
s Limited
Jianbang 1546413206.24 6596481.14 1553009687.38 1496960467.21 1496960467.21
(2) Profit and loss and cash flow
Subsidia Current period Same period last year
ries Operating Total Cash flow from Total Cash flow fromname income Net profit comprehensive operating
Operating
income Net profit comprehensive operatingincome activities income activities
Great
wall
propertie 697969.09 -328980.98 1759924.36 158148.77 695682.90 -351389.23 -1731679.70 -124152.78
s
Xinfeng
Investme
nt Co. -34610.25 -64961.29
Ltd
Bestway
Propertie
s -96.22 820929.91 -713023.86
Limited
Jianbang -1918706.24 -1918706.24 -2412.86 -409694614.91 -409694614.91 -5663416.92
[note] Jianbang company was taken over by the bankruptcy administrator for bankruptcy
liquidation on November 30 2025 and will no longer be included in the scope of consolidation
from November 30 2025.
（4） Equity in joint ventures or associates
1. Summary financial information of unimportant joint ventures and associates
Projects Closing balance/current Beginning balance/samebalance period last year
Joint venture
Total book value of investment
84Projects Closing balance/current Beginning balance/samebalance period last year
The total number of the following items
calculated according to the shareholding
ratio
Net profit
Other comprehensive income
Total comprehensive income
Associates
Total book value of investment
The total number of the following items
calculated according to the shareholding
ratio
Net profit
Other comprehensive income
Total comprehensive income
2. Excess losses incurred by joint ventures or associates
Joint ventures or Previous Unrecognized losses in Cumulative at the end of
Name of joint accumulation not the current period(or net profit shared in the periodventure Recognised losses the current period) Unrecognized losses
Shenzhen Xinfeng
Real Estate 2217955.89 2217955.89
Consulting Co. Ltd
7、 Government subsidies
Amount of government subsidies included in current profit and loss
Projects Current period Same period last year
Amount of government subsidies included in other
income 753298.54
Total 753298.54
8、 Risks related to financial instruments
The goal of the company's risk management is to strike a balance between risk and return
minimize the negative impact of risk on the company's operating results and maximize the
interests of shareholders and other equity investors.Based on this risk management objective the
basic strategy of the company's risk management is to confirm and analyze various risks faced by
the company establish an appropriate bottom line of risk tolerance and risk management and
supervise various risks in a timely and reliable manner to control risks within a limited range.The company is facing various risks related to financial instruments in its daily activities
mainly including credit risk liquidity risk and market risk.Management has considered and
approved policies to manage these risks summarized below.
85（1） Credit risk
Credit risk refers to the risk that one party to a financial instrument fails to perform its
obligations and causes financial losses to the other party.
1. Credit risk management practice
(1) Evaluation method of credit risk
The company assesses on each balance sheet date whether the credit risk of the relevant
financial instruments has increased significantly since initial recognition.In determining whether
credit risk has increased significantly since initial recognition the company considers obtaining
reasonable and evidence-based information without unnecessary additional costs or efforts
including qualitative and quantitative analysis based on historical data external credit risk ratings
and forward-looking information.Based on a single financial instrument or a combination of
financial instruments with similar credit risk characteristics the company determines the change
in the risk of default during the expected duration of financial instruments by comparing the risk
of default of financial instruments on the balance sheet date with the risk of default on the initial
recognition date.When one or more of the following quantitative and qualitative criteria are triggered the
company believes that the credit risk of financial instruments has increased significantly:
1) The quantitative standard is mainly that the default probability of the remaining duration
on the balance sheet date increases by more than a certain proportion compared with the initial
recognition;
2) The qualitative criteria are mainly significant adverse changes in the debtor's business or
financial situation existing or expected changes in the technical market economic or legal
environment and will have a significant adverse impact on the debtor's ability to repay the
company.
(2) Definition of default and credit impaired assets
When a financial instrument meets one or more of the following conditions the company
defines the financial asset as having defaulted and its standard is consistent with the definition of
credit impairment:
1) The debtor has significant financial difficulties;
2) The debtor violates the binding provisions of the contract on the debtor;
3) The debtor is likely to go bankrupt or undergo other financial restructuring;
4) The creditor gives the debtor concessions that it would not otherwise make because of
economic or contractual considerations related to the debtor's financial difficulties.
2. Measurement of expected credit losses
The key parameters of expected credit loss measurement include default probability default
loss rate and default risk exposure.Considering the quantitative analysis and forward-looking
information of historical statistics (such as counterparty rating guarantee method collateral
category repayment method etc.) the company establishes a default probability default loss rate
and default risk exposure model.
3. The reconciliation between the Beginning balance of the provision for loss of financial
instruments and the closing balance is detailed in notes V (1) 3 V (1) 4 V (1) 6 and V (1) 8 to
these financial statements.
4. Credit risk exposure and credit risk concentration
The company's credit risk mainly comes from monetary funds and receivables.In order to
86control the above related risks the company has taken the following measures respectively.
(1) Monetary funds
The company deposits bank deposits and other monetary funds in financial institutions with
higher credit ratings so its credit risk is low.
(2) Receivables and contract assets
The company regularly evaluates the credit of customers who trade by credit.According to
the credit assessment results the company chooses to conduct transactions with recognized
customers with good credit and monitors their accounts receivable balances to ensure that the
company will not face significant bad debt risks.As the company's accounts receivable risk points are distributed among multiple partners and
multiple customers.Credit risk is centrally managed according to customers.As of December 31
2025 the company has a certain credit concentration risk and 38.71% of the company's accounts
receivable and contract assets (December 31 2024: 40.97%) are from the top five customers in the
balance.The company does not hold any collateral or other credit enhancement for the balance of
accounts receivable and contract assets.The maximum credit risk exposure to the company is the book value of each financial asset
in the balance sheet.
（2） Liquidity risk
Liquidity risk refers to the risk of capital shortage when the company performs its obligation
to settle by delivering cash or other financial assets.Liquidity risk may stem from the inability to
sell financial assets at fair value as soon as possible;Or because the other party is unable to repay
its contract debts;Or from debt maturing early;Or from the inability to generate the expected cash
flow.In order to control this risk the company comprehensively uses bill settlement bank
borrowing and other financing means and adopts the appropriate combination of long-term and
short-term financing methods to optimize the financing structure so as to maintain a balance
between financing sustainability and flexibility.The company has obtained bank credit lines from a
number of commercial banks to meet working capital needs and capital expenditure.Financial liabilities are classified by remaining maturity
Closing balance
Projects
book value Undiscountedcontract amount Within 1 year 1-3 years
More than 3
years
Short-term
borrowings 50000.00 50000.00 50000.00
Accounts payable 171738333.04 171738333.04 171738333.04
Other accounts
payable 144280409.16 144280409.16 144280409.16
Other current
liabilities 7329890.15 7329890.15 7329890.15
Sub total 323398632.35 323398632.35 323398632.35
(Continued)
Beginning balance
Projects
book value Undiscountedcontract amount Within 1 year 1-3 years
More than 3
years
Short-term
borrowings 1563000.00 1599446.39 1599446.39
87Beginning balance
Projects
book value Undiscounted Within 1 year 1-3 years More than 3contract amount years
Accounts payable 464488982.30 464488982.30 464488982.30
Other accounts
payable 561016653.17 561016653.17 561016653.17
Non current
liabilities due 33888347.83 36522809.86 36522809.86
within one year
Other current
liabilities 118304068.47 118304068.47 118304068.47
Long-term
borrowings 62273677.82 67283938.91 4788462.25 62495476.66
Sub total 1241534729.59 1249215899.10 1181931960.19 4788462.25 62495476.66
（3）Market risk
Market risk refers to the risk that the fair value or future cash flow of financial instruments
will fluctuate due to changes in market prices.Market risks mainly include interest rate risk and
foreign exchange risk.
1. Interest rate risk
Interest rate risk refers to the risk that the fair value or future cash flow of financial
instruments will fluctuate due to changes in market interest rates.Fixed interest rate interest
bearing financial instruments expose the company to fair value interest rate risk and floating
interest rate interest bearing financial instruments expose the company to cash flow interest rate
risk.The company determines the ratio of fixed interest rate to floating interest rate financial
instruments according to the market environment and maintains an appropriate portfolio of
financial instruments through regular review and monitoring.The cash flow interest rate risk faced
by the company is mainly related to the company's bank loans with floating interest rates.As of December 31 2025 the company's bank loans with no floating interest rate (December
31 2024: RMB 62273677.82) assuming that other variables remain unchanged assuming that the
interest rate changes by 50 basis points will not have a significant impact on the company's total
profit and shareholders'equity.
2. Foreign exchange risk
Foreign exchange risk refers to the risk that the fair value or future cash flow of financial
instruments will fluctuate due to changes in foreign exchange rates.The risk of exchange rate
changes faced by the company is mainly related to the company's foreign currency monetary
assets and liabilities.For foreign currency assets and liabilities if there is a short-term imbalance
the company will buy and sell foreign currencies at market exchange rates when necessary to
ensure that the net risk exposure is maintained at an acceptable level.Exchange rate risk is mainly that the company's financial position and cash flow are affected
by fluctuations in foreign exchange rates.In addition to the assets denominated in Hong Kong
dollars held by subsidiaries established in Hong Kong there is only a small amount of Hong Kong
market investment business and the foreign currency assets and liabilities held by the company do
not account for a significant proportion of the overall assets and liabilities.Therefore the company
believes that the exchange rate risk is not significant.The company's foreign currency monetary assets and liabilities at the end of the period are
detailed in note 5 (4) 1 to the financial statements.
889、 Disclosure of fair value
（1） Details of fair value of assets and liabilities measured at fair value at the end of the
period
Fair value at the end of the period
Projects Level 1 fairness
Level 2
fairness Level 3 fairnessValue Value Total
measurement Valuemeasurement measurement
Continuing fair value measurement
1. Trading financial assets and
other non current financial 1050256058.41 1050256058.41
assets
(1) Financial assets classified as
at fair value through profit or
loss
Fund finance 1050256058.41 1050256058.41
(2) Financial assets designated
as measured at fair value and
whose changes are included in
the current profit and loss
Debt instruments
investments
2. Investment in other equity
instruments 14571511.81 14571511.81
Total assets continuously measured
at fair value 1064827570.22 1064827570.22
（2） Continuous and non continuous third level fair value measurement projects valuation
technology and qualitative and quantitative information of important parameters
For fund financing that is not traded in an active market its remaining period is relatively
short and its fair value is determined by the sum of book value and expected income.For other
equity instrument investments that are not traded in the active market the investment amount is
small the net assets of the invested unit change little and the book value is similar to the fair
value so the book value is used to determine its fair value.
10、 Related parties and related transactions
（1） Related parties
1. Parent company of the company
(1) Parent company of the company
Shareholding Voting
Registered ratio of the rights of
Parent company Place of Nature of capital parent the parent
name incorporation business (10000 company to company
yuan) the company to the
(%) company(%)
Investment
Shenzhen Investment Shenzhen real estate
Holding Co. Ltd Guangdong development 3358600.00 54.79 54.79
guarantee
(2) The ultimate controller of the company is the state owned assets supervision and
89Administration Commission of Shenzhen Municipal People's government.
2. For details of the company's subsidiaries please refer to note 6 to the financial statements.
3. Joint ventures and associates of the company
For details of the company's important joint ventures or associates please refer to note 6 to
the financial statements.
4. Other related parties of the company
Names of other related parties Relationship between other related parties andthe company
Shenzhen Oriental New World Department
Store Co. Ltd Shareholding company
Shenzhen Shenxi building decoration company Revoked but not cancelled holding subsidiariesnot included in the merger
Shenzhen zhentongxin Electromechanical
Industry Development Co. Ltd Holding subsidiaries not included in the merger
Shenzhen Nanyang Hotel Co. Ltd Revoked but not cancelled holding subsidiariesnot included in the merger
Shenzhen real estate electromechanical Revoked but not cancelled holding subsidiaries
management company not included in the merger
Shenzhen Longgang Henggang Huagang Revoked but not cancelled holding subsidiaries
Industrial Co. Ltd not included in the merger
Guangdong Jianbang group (Huiyang) Holding subsidiaries not included in the merger
Industrial Co. Ltd. [note] that have entered bankruptcy proceedings
Guangzhou bobi Enterprise Management
Consulting Co. Ltd. (hereinafter referred to as Shareholders of subsidiaries
Guangzhou bobi)
Shenzhen Property Management Co. Ltd Holding subsidiary of parent company
Guoren Property Insurance Co. Ltd Holding subsidiary of parent company
Shenzhen water planning and Design Institute
Co. Ltd Holding subsidiary of parent company
Shenzhen General Institute of Architectural
Design and Research Holding subsidiary of parent company
Shenzhen shenfang property cleaning Co. Ltd Holding subsidiary of parent company
Shenzhen Property Management Co. Ltd.Shantou branch Holding subsidiary of parent company
Shenzhen Xinfeng Real Estate Consulting Co.Ltd Shareholding company
Guangdong Huizhou Luofushan mineral water
beverage Co. Ltd Shareholding company
Shenzhen Runhua Auto Trading Company Shareholding company
Great Wall (Vancouver) Inc Shareholding company
Burkton Australia Limited Shareholding company
Baili Co. Ltd Shareholding company
Shenzhen shenfang Department Store Co. Ltd Shareholding company
Shenzhen ronghua Electromechanical
Engineering Co. Ltd Shareholding company
Xi'an Xinfeng Property Trading Co. Ltd Shareholding company
90Names of other related parties Relationship between other related parties andthe company
Fengkai Lianfeng cement manufacturing Co.Ltd Shareholding company
Beijing Shenfang Property Management Co.Ltd Shareholding company
[note] before November 30 2025 Guangdong Jianbang group (Huiyang) Industrial Co. Ltd.was a holding subsidiary of the company. On and after November 30 2025 Guangdong Jianbang
group (Huiyang) Industrial Co. Ltd. entered bankruptcy liquidation proceedings and was taken
over by the administrator.The company loses control of it and will no longer include it in the scope
of consolidated statements. At the time of loss of control the corresponding book balance of long-
term equity investment is 450000000.00 yuan and the provision for impairment of long-term
equity investment is 450000000.00 yuan.
（2） Related party transactions
1. Related party transactions for purchasing and selling commodities providing and receiving
labor services
(1) Related party transactions for purchasing goods and receiving services
Related parties Content of relatedparty transactions Current period Same period last year
Shenzhen water
planning and Design Testing services 27169.81
Institute Co. Ltd
Guoren Property
Insurance Co. Ltd Insurance services 265372.43 322255.28
Shenzhen Property
Management Co. Ltd Property services 3718815.11 7472214.59
Shenzhen shenfang
property cleaning Co. Cleaning services 520444.89 497453.20
Ltd
Shenzhen Property
Management Co. Ltd. Property services 2553168.28 2480734.94
Shantou branch
Shenzhen ronghua
Electromechanical Engineering services 310179.94
Engineering Co. Ltd
Sub total 7367980.65 10799827.82
(2) Related party transactions for the sale of goods and the provision of services
Related parties Content of relatedparty transactions Current period Same period last year
Guoren Property
Insurance Co. Ltd Leasing services 424754.28 773325.68
Shenzhen Property
Management Co. Ltd Leasing services 5199896.63 5476586.12
Shenzhen shenfang
property cleaning Co. Leasing services 41714.28 39999.96
Ltd
Sub total 5666365.19 6289911.76
2. Related party leases
Company rentals
91Confirmed in the Confirmed in the
Name of tenant Types of leased assets current period same period last year
Rental income Rental income
Shenzhen Property
Management Co. Ltd Houses buildings 5199896.63 5476586.12
Shenzhen shenfang
property cleaning Co. Houses buildings 41714.28 39999.96
Ltd
Guoren Property
Insurance Co. Ltd Houses buildings 424754.28 773325.68
Sub total 5666365.19 6289911.76
3. Remuneration of key management
Projects Current period Same periodlast year
Key management compensation 6981280.00 8572590.00
4. Other related party transactions
In order to advocate that the core employees of the group share the operating results of
market-oriented projects with the company share operational risks stimulate their endogenous
motivation to improve efficiency and increase efficiency improve asset management efficiency
and realize the preservation and appreciation of state-owned assets the company formulated the
measures for the management of employees in linxijun project of shenfang group in July 2021.According to the provisions of the above management measures the follow-up will constitute a
related party transaction of joint investment with some directors supervisors and senior executives
of the company.The company has cancelled the follow-up investment in the Lin Xinyuan project
in June 2025 and returned the follow-up investment amount in full in 2025.
（3） Receivables and payables from related parties
1. Receivables from related parties
project Closing balance Beginning balance
name Related parties Book balance Bad debt Bad debtprovision Book balance provision
Accounts
receivable
Shenzhen Property
Management Co. 500000.00 1025942.86
Ltd
Shenzhen Xinfeng
Real Estate 1212232.73 1212232.73 1237010.58 1237010.58
Consulting Co. Ltd
Sub total 1712232.73 1212232.73 2262953.44 1237010.58
Other
receivables
Guangdong
Jianbang group
(Huiyang) Industrial 843296961.67 102965447.05
Co. Ltd
Shenzhen Property
Management Co. 5500.00
Ltd
Guangdong
Huizhou Luofushan
mineral water 10465168.81 10465168.81 10465168.81 10465168.81
beverage Co. Ltd
92project Closing balance Beginning balance
name Related parties Book balance Bad debtprovision Book balance
Bad debt
provision
Shenzhen Runhua
Auto Trading 3072764.42 3072764.42 3072764.42 3072764.42
Company
Great Wall
(Vancouver) Inc 89035748.07 89035748.07 89035748.07 89035748.07
Burkton Australia
Limited 12559290.58 12559290.58 12559290.58 12559290.58
Baili Co. Ltd 19363348.69 19363348.69 20251959.02 20251959.02
Shenzhen shenfang
Department Store 237648.82 237648.82 237648.82 237648.82
Co. Ltd
Shenzhen ronghua
Electromechanical
Engineering Co. 475223.46 475223.46 475223.46 475223.46
Ltd
Xi'an Xinfeng
Property Trading 8391333.18 8391333.18 8419205.19 8419205.19
Co. Ltd
Shenzhen Shenxi
building decoration 7660529.37 7660529.37 7660529.37 7660529.37
company
Shenzhen Nanyang
Hotel Co. Ltd 3168721.00 3168721.00 3168721.00 3168721.00
Beijing Shenfang
Property
Management Co. 6905673.69 6533817.09 6905673.69 6533817.09
Ltd
Sub total 1004632411.76 263929040.54 162257432.43 161880075.83
2. Amounts due to related parties
entry name Related parties Closing balance Beginning balance
Other accounts
payable - interest
payable
Shenzhen Investment
Holding Co. Ltd 16535277.94 16535277.94
Sub total 16535277.94 16535277.94
Accounts payable
Shenzhen Property
Management Co. Ltd 8127082.22 12658092.83
Sub total 8127082.22 12658092.83
Other accounts
payable
Shenzhen Property
Management Co. Ltd 171466.20 244304.26
Guoren Property
Insurance Co. Ltd 74332.00
Shenzhen Oriental New
World Department Store 902974.64 902974.64
Co. Ltd
Fengkai Lianfeng cement
manufacturing Co. Ltd 1867348.00 1867348.00
93entry name Related parties Closing balance Beginning balance
Shenzhen real estate
electromechanical 14981420.99 14981420.99
management company
Shenzhen zhentongxin
Electromechanical Industry 8260832.50 8310832.50
Development Co. Ltd
Shenzhen shenfang
Department Store Co. Ltd 639360.38 639360.38
Shenzhen Longgang
Henggang Huagang 165481.09 165481.09
Industrial Co. Ltd
Guangzhou bobi Enterprise
Management Consulting 206903717.13
Co. Ltd
Sub total 26988883.80 234089770.99
11、 Commitments and contingencies
（1） Important commitments
As of December 31 2025 the company does not need to disclose important commitments.
（2） Contingencies
1. Contingent liabilities arising from pending litigation and arbitration and their financial
impact
plaintiff defendant Cause of Court of Targetaction acceptance amount Note
In the bankruptcy
Zhongshan Guangdong
Shengtang Jianbang group Filing for
Huizhou Creditor's liquidation the
(Huiyang) bankruptcy intermediate rights and administrator has takenAdvertising Co. people's debts under over Jianbang
Ltd Industrial Co. liquidationLtd court review company.Case details: [Note 1]
Huizhou
Mingxiang
Economic Progress of the case:
Information Principal Jianbang company has
Consulting Co. Guangdong Litigation 177.1514 entered the bankruptcy
Ltd. Huizhou Jianbang group over bill Huiyang(Huiyang) District million yuan liquidation procedureHuiyang Hongfa Industrial Co. payment Court interest and creditors canindustry and Ltd claim 2.8482 declare their creditor'sTrade Co. Ltd. million yuan rights to the manager.and Huizhou Case details: [Note 2]
jinlongsheng
Industrial Co. Ltd
Guangzhou bobi Case progress: in the
Enterprise second instance.Hengda
Management Pearl River Delta
Consulting Co. company has entered
Ltd. Evergrande Disputes the bankruptcyreal estate group Huizhou liquidation procedure
Shenzhen Special Pearl River Delta over joint
Economic Zone real estate venture and
intermediate and has declared its
cooperative people's 743.575 creditor's rights to theReal Estate development Co. development Court of million yuan manager.Guangzhou(Group) Co. Ltd Ltd. Shenzhen Guangdong bobi and Shenzhen
Qijin Investment real estatecontracts Province Qijin are handlingCo. Ltd. liquidation cancellation
(hereinafter and have declared their
referred to as creditor's rights to the
Shenzhen Qijin) liquidation group
and the third respectively.
94person is Case details: [Note 3]
Guangdong
Jianbang group
(Huiyang)
Industrial Co.Ltd
Case progress: end the
enforcement
process.Jianbang
Shenzhen Special Guangdong ShenzhenJianbang group Loan Luohu Principal and company has enteredEconomic Zone
Real Estate (Huiyang) contract District
interest the bankruptcy
(Group) Co. Ltd Industrial Co. disputes People's
395.6885 liquidation procedure
Ltd court million yuan and has declared itscreditor's rights to the
manager.Case details: [Note 4]
Guangdong Progress of the case:
Jianbang group Jianbang company and
(Huiyang) Hengda Pearl River
Industrial Co. Delta company have
Ltd. Guangzhou entered the bankruptcy
bobi Enterprise liquidation procedure
Management Huizhou and have declared theirShenzhen Special
Economic Zone Consulting Co. Loan Huiyang
Principal and creditor's rights to the
Real Estate Ltd. Evergrande contract District
interest manager
419.5229 respectively.Guangzhou
(Group) Co. Ltd real estate group disputes People'sPearl River Delta court million yuan bobi and Shenzhen
real estate Qijin are handling
development Co. liquidation cancellation
Ltd. and and have declared their
Shenzhen Qijin creditor's rights to the
Investment Co. liquidation group
Ltd respectively.Case details: [Note 5]
[Note 1] on October 27 2025 Jianbang company received the civil ruling and decision made
by Huizhou intermediate people's court which ruled to accept the application for bankruptcy
liquidation of Jianbang company by Zhongshan Shengtang Advertising Co. Ltd. (hereinafter
referred to as Shengtang company) and appoint an administrator. For details please refer to the
announcement on court ruling to accept the application for bankruptcy liquidation of holding
subsidiaries and the appointment of managers issued by the company on October 30 2025
(Announcement No.: 2025-030).On December 8 2025 the company submitted creditor's rights
declaration materials to the manager of Jianbang company in accordance with the amount of
creditor's rights confirmed by the effective civil judgment the confirmation of creditor's rights and
debts and the transfer certificate;The company actively participates in creditors' meetings and
exercises creditors' rights according to law.[Note 2] Jianbang company is a subsidiary of the company holding 51% of the shares.Because Jianbang company was unable to pay the commercial acceptance bill due in January 2022
with a total amount of 177.1514 million yuan the plaintiff company filed a lawsuit on the dispute
of bill payment claim with Huiyang District Court.On March 14 2023 the court ruled that
Jianbang company would pay commercial bills and overdue interest (including litigation fees and
preservation fees of about 1.03 million yuan) to three companies within 15 days.The case seized 2
and 4 buildings in the first phase of shenfang linxinyuan project totaling 153 units with an
estimated price of 220 million yuan at the filing price.The plaintiff has applied to Huizhou
intermediate people's court for execution.As of December 31 2025 in view of the bankruptcy
liquidation proceedings of Jianbang company the manager took over Jianbang company and
handled all litigation and execution cases in a unified manner.
95[Note 3] on April 30 2021 the company signed the cooperative development agreement and
the entrusted management agreement with Guangzhou bobi Hengda Pearl River Delta and
Jianbang company. Guangzhou bobi promised that Jianbang company would achieve a cumulative
net profit of not less than 1.25 billion yuan in 2021-2025. If Guangzhou bobi fails to fulfill its
profit commitment it will make up the difference.On June 30 2021 due to the acquisition of 51%
equity of Guangzhou bobi by Shenzhen Qijin the company Guangzhou bobi Hengda Pearl River
Delta and Shenzhen Qijin jointly signed supplementary agreement I to the cooperative
development agreement stipulating that Shenzhen Qijin shall be jointly and severally liable with
Hengda Pearl River Delta for the profit commitment and difference supplement of Guangzhou
bobi to the company stipulated in the cooperative development agreement.Now the company has
filed a lawsuit because the acts of Guangzhou bobi and Hengda Pearl River Delta have
fundamentally violated the contract and have actually lost the ability to perform the contract
resulting in the failure to achieve the purpose and expected benefits of the company's contract.On
January 8 2025 the company received the civil judgment of the first instance of the case and the
judgment made by Huizhou intermediate people's Court of the first instance supported some of the
company's claims.On January 22 2025 the company appealed the unsubstantiated application.The case was heard in the second instance on May 22 2025 and is now in the second instance.In
view of the fact that Evergrande Pearl River Delta company has entered the bankruptcy liquidation
procedure the company has declared its creditor's rights to the manager while Guangzhou bobi
and Shenzhen Qijin are handling the liquidation cancellation and the company has declared its
creditor's rights to the liquidation group respectively.[Note 4] in 2021 the company acquired Guangzhou bobi to hold 51% of the shares of
Jianbang company. At the time of acquisition it was agreed that the company would provide
interest bearing loans to Jianbang company according to the proportion of shares.Later Jianbang
company borrowed money from the company twice and signed the loan agreement.After the
signing of the agreement the company shall provide loans to Jianbang company in accordance
with the contract and fulfill its lending obligations.Now the two loans have expired but Jianbang
company has not repaid them which constitutes a default.As a state-controlled listed company the
company filed this lawsuit in order to protect state-owned assets from losses.The case was judged
in the first instance in December 2023. In January 2024 the company received the civil judgment
made by the people's Court of Luohu District Shenzhen City Guangdong Province: it was judged
that Jianbang company would repay the principal of the loan of 344696200.26 yuan and pay
interest to the company within 10 days from the date of entry into force of the judgment;Judgment
Jianbang company shall pay liquidated damages to the company within 10 days from the effective
date of the judgment.The company has applied for compulsory execution and received the
execution ruling on December 2 2025 ruling to terminate the execution procedure.In view of the
fact that Jianbang company has entered the bankruptcy liquidation proceedings the company has
declared its creditor's rights to the manager.[Note 5] in 2021 the company acquired Guangzhou bobi to hold 51% of the shares of
Jianbang company and agreed to provide interest bearing loans to Jianbang company according to
the proportion of shares.The latter five parties signed an agreement to stipulate that the company
will provide loans to Jianbang company and Jianbang company will provide corresponding
collateral. At the same time Guangzhou bobi Hengda Pearl River Delta and Shenzhen Qi are
jointly and severally liable for 49% of the total amount of loans interest and liquidated
96damages.After the signing of the agreement the company provided loans to Jianbang company in
accordance with the contract and fulfilled its lending obligations but Jianbang company was
unable to repay the loans. As a state-controlled listed company the company filed a lawsuit in this
case in order to protect state-owned assets from losses.On June 7 2024 the company received the
judgment of victory in the first instance. On June 24 2024 Guangzhou bobi appealed but failed
to pay the case acceptance fee on time. In October 2024 Huizhou intermediate people's Court
issued the civil ruling which was handled as withdrawal of the lawsuit and the judgment of the
first instance took effect.The company applied to the court for enforcement in January 2025.In
view of the fact that Jianbang company and Hengda Pearl River Delta company have entered the
bankruptcy liquidation procedures the company has declared creditor's rights to the manager
respectively while Guangzhou bobi and Shenzhen Qijin are handling liquidation cancellation and
the company has declared creditor's rights to the liquidation group respectively.
2. Contingent liabilities formed by providing debt guarantees for other units and their
financial impact
As of December 31 2025 the company provided mortgage loan guarantees and subsidiary
loan guarantees for commercial housing offtakers in accordance with real estate business practices
totaling 181.6769 million yuan.Guaranteed
Guaranteed Loan loan
entity Financial institutions Payment
guarantee
Due date Noteamount (10000
yuan)
After completing the
mortgage registration of
Buyer China Construction Bank 38.85 the real estate certificate Shang Linyuan
and handing it over to the
bank for safekeeping
After completing the
mortgage registration of
Buyer agricultural bank 151.43 the real estate certificate Tsui Lam Yuen
and handing it over to the
bank for safekeeping
After completing the
mortgage registration of Chuanqi
Buyer agricultural bank 631.55 the real estate certificate Donghu
and handing it over to the Mingyuan
bank for safekeeping
China Construction Bank
Bank of communications After completing the
industrial and Commercial mortgage registration ofBuyer Bank of China Bank of 1787.98 the real estate certificate Tian Yue Wan
China Everbright Bank and and handing it over to the
postal savings bank bank for safekeeping
Industrial and Commercial
Bank of China Huaxia
Bank agricultural and After completing the
Buyer Commercial Bank of China
mortgage registration of
Agricultural Bank of China 15557.88 the real estate certificate Guangming Li
postal savings bank China and handing it over to the
Merchants Bank and Bank bank for safekeeping
of China
Sub total 18167.69
12、 Events after balance sheet date
Profit distribution after balance sheet date
97Based on the total share capital of 1011660000 shares as of December 31 2025 the
company intends to distribute a cash dividend of 0.35 yuan (including tax) per 10 shares to all
shareholders totaling 35408100.00 yuan.
13、 Other important matters
Segment information
The company's main business is to collect rental fees and management fees for the
development construction and sale of real estate products and the rental of properties.The
company regards this business as a whole to implement management and evaluate business
results.Therefore the company does not need to disclose segment information.Details of the
company's revenue breakdown are set out in note 5 (2) 1 to the financial statements.
14、 Notes to major items in the financial statements of the parent company
（1） Notes to balance sheet items of parent company
1. Accounts receivable
(1) Aging
Aging Closing balance Beginning balance
Within 1 year 8724709.94 13309107.41
1-2 years 1992924.09
More than 5 years 4450138.62 4450138.62
Total book balance 15167772.65 17759246.03
Less: bad debt provision 10324219.89 10559107.12
Total book value 4843552.76 7200138.91
(2) Provision for bad debts
1) Category breakdown
Closing balance
Types Book balance Bad debt provision
money Proportio money Provision ratio
book value
n (%) (%)
Single provision for
bad debts 10069296.06 66.39 10069296.06 100.00
Provision for bad
debts by portfolio 5098476.59 33.61 254923.83 5.00 4843552.76
Total 15167772.65 100.00 10324219.89 68.07 4843552.76
(Continued)
Beginning balance
Types Book balance Bad debt provision
money Proportio
book value
n (%) money
Provision ratio
(%)
Single provision for
bad debts 10084109.60 56.78 10084109.60 100.00
98Beginning balance
Types Book balance Bad debt provision
money Proportio money Provision ratio
book value
n (%) (%)
Provision for bad
debts by portfolio 7675136.43 43.22 474997.52 6.19 7200138.91
Total 17759246.03 100.00 10559107.12 59.46 7200138.91
2) Important accounts receivable with single provision for bad debts
Company Beginning balance Closing balance
name Book Bad debt Book Bad debt Provision Basis of
balance provision balance provision ratio (%) provision
Long term Not
uncollected 10084109.60 10084109.60 10069296.06 10069296.06 100.00 expected
house sales to berecovered
Sub
total 10084109.60 10084109.60 10069296.06 10069296.06 100.00
3) Accounts receivable with portfolio provision for bad debts
Closing balance
Projects
Book balance Bad debt Provision ratioprovision (%)
Portfolio of real estate sales
receivables 5098476.59 254923.83 5.00
Portfolio of related parties within
the scope of receivables
consolidation
Sub total 5098476.59 254923.83 5.00
(3) Changes in bad debt reserves
Current change amount
Projects Beginningbalance Closing balanceProvision Withdrawal Writor reversal e off other
Single
provision for 10084109.60 110856.38 9973253.22
bad debts
Provision for
bad debts by 474997.52 124030.85 350966.67
portfolio
Total 10559107.12 234887.23 10324219.89
(4) Top 5 accounts receivable and contract assets
Proportion in
the total Provision forBook balance at the end of the period
balance of bad debts of
Company name accounts
accounts
Contr receivable and
receivable and
Accounts contract assets provision for
receivable act Sub total impairment ofassets at the end of
the period (%) contract assets
Shenzhen
Huatang famous
wine City 3080162.00 3080162.00 20.31 154008.10
Investment Co.
99Proportion in
the total Provision forBook balance at the end of the period
balance of bad debts of
accounts accountsCompany name receivable and receivable and
Accounts Contract Sub total contract assets
provision for
receivable at the end of impairment ofassets
the period (%) contract assets
Ltd
Daxing auto parts
Co. Ltd 2052228.46 2052228.46 13.53 2052228.46
Shenzhen Luohu
hospital group 1240986.00 1240986.00 8.18 62049.30
Shenzhen
Xinfeng Real
Estate Consulting 1212232.73 1212232.73 7.99 1212232.73
Co. Ltd
Wang Weidong 1200000.00 1200000.00 7.91 1200000.00
Sub total 8785609.19 8785609.19 57.92 4680518.59
2. Other receivables
(1) Details
Projects Closing balance Beginning balance
Dividends receivable 24222722.88 29222722.88
Other receivables 1856205185.25 1722328667.65
Total 1880427908.13 1751551390.53
(2) Dividends receivable
1) Details
Projects Closing balance Beginning balance
Shenzhen shenfang group Longgang Development
Co. Ltd 24222722.88 29222722.88
Sub total 24222722.88 29222722.88
2) Important dividends receivable with an account age of more than 1 year
Whether there is
Projects Closing balance Aging Reasons for impairment anduncollection its judgment
basis
Shenzhen shenfang group
Longgang Development 24222722.88 3-4 Deferred no
Co. Ltd years payment
Sub total 24222722.88
(3) Other receivables
1) Nature and classification of payments
Nature of payment Closing balance Beginning balance
100Nature of payment Closing balance Beginning balance
Portfolio of receivables from related parties 2633214641.39 2403869206.91
Portfolio of receivables from government
departments 165460.00 165460.00
Employee reserve portfolio receivable 93900.00
Collection and payment portfolio receivable 500018.15 1002722.31
Other receivables portfolio 144601238.67 142474366.82
Sub total book balance 2778481358.21 2547605656.04
Less: bad debt provision 922276172.96 825276988.39
Sub total book value 1856205185.25 1722328667.65
2) Aging
Aging Closing balance Beginning balance
Within 1 year 258963768.91 452103220.23
1-2 years 424416517.52 6102884.22
2-3 years 6100266.94 642158.28
3-4 years 243411.53 456845625.71
4-5 years 456845625.71 104875297.41
More than 5 years 1631911767.60 1527036470.19
Sub total book balance 2778481358.21 2547605656.04
Less: bad debt provision 922276172.96 825276988.39
Sub total book value 1856205185.25 1722328667.65
3) Provision for bad debts
* Category breakdown
Closing balance
Book balance Bad debt provision
Types
money Proportion
Provision book value
(%) money Proportion(%)
Single provision for bad
debts 1662432598.59 59.83 922101083.97 55.47 740331514.62
Provision for bad debts by
portfolio 1116048759.62 40.17 175088.99 0.02 1115873670.63
Sub total 2778481358.21 100.00 922276172.96 33.19 1856205185.25
(Continued)
Beginning balance
Types
Book balance Bad debt provision book value
101Provisi
money Proporti
on
on (%) money Proportion
(%)
Single provision for
bad debts 825174418.56 32.39 825174418.56 100.00
Provision for bad
debts by portfolio 1722431237.48 67.61 102569.83 0.01 1722328667.65
Sub total 2547605656.04 100.00 825276988.39 32.39 1722328667.65
* Other receivables with portfolio provision for bad debts
Closing balance
Portfolio name
Book balance Bad debt provision Provision ratio (%)
Portfolio of receivables
from related parties 1111796074.26
Portfolio of receivables
from government 165460.00
departments
Collection and payment
portfolio receivable 500018.15 25000.91 5.00
Other receivables portfolio 3587207.21 150088.08 4.18
Sub total 1116048759.62 175088.99 0.02
4) Changes in bad debt reserves
Stage 1. Stage 2. Stage 3.Expected credit
Projects Next 12 months
Expected credit loss for the
Expected credit loss for the whole whole duration
Sub total
loss duration (no credit (creditimpairment) impairment has
occurred)
Beginning balance 102289.83 825174698.56 825276988.39
Beginning balance
in current period —— —— ——
--Move to phase 2
--Move to phase 3
--Back to phase 2
--Back to phase 1
Current provision 19877.93 52921.23 72799.16
Recovered or
reversed in the
current period
Current write off
Other changes 96926385.41 96926385.41
102Closing balance 122167.76 52921.23 922101083.97 922276172.96
Provision ratio for
bad debt reserves
at the end of the 0.05 0.41 55.47 32.48
period (%)
5) Top 5 other receivables
Nature Proportion
Company of Book balance at the in balance of Bad debt
name paymen end of the period Aging other provision at the
t receivables end of the period(%)
Within 1
Current year 1-2
account years 2-3
Jianbang of 843296961.67 years and thirty point
subsidi more three five
102965447.05
ary than 5
years
Shantou Current
Huafeng Real account 1-2 years
Estate of 734160642.87 morethan 5 30.35 102965447.05Development subsidi
Co. Ltd ary years
Current
Xinfeng account 1-2 years
Enterprise Co. of 535292823.86 more
Ltd subsidi than 5
26.42
ary years
Shenzhen
shenfang Current
Within 1
Chuanqi Real account
year 1-2
Estate of 262695711.25
years and
more 19.26 535292823.86
Development subsidiary than 5Co. Ltd years
Current
Great wall account More
properties of 104182848.13 than 5 9.45subsidi years
ary
Sub total 2479628987.78 3.75 104182848.13
3. Long-term equity investments
(1) Details
Closing balance Beginning balance
Projects
Book balance Provision forimpairment book value Book balance
Provision for
impairment book value
Investments
in 1265520833.00 133339271.15 1132181561.85 1715520833.00 554754168.86 1160766664.14
subsidiaries
103Investment
in
associates 11977845.58 11977845.58 11977845.58 11977845.58
and joint
ventures
Total 1277498678.58 145317116.73 1132181561.85 1727498678.58 566732014.44 1160766664.14
(2) Investments in subsidiaries
Beginning balance Increase and decrease in the current period Closing balance
Investee reducBook value Impairment AddInves e Provision for Book value Impairmentvalue ready tment Invest impairment
other value ready
ment
Shenzhen
Haiyan Hotel 20605047.50 20605047.50
Co. Ltd
Shenzhen
Shenfang
Investment 9000000.00 9000000.00
Co. Ltd
Xinfeng
Enterprise Co. 556500.00 556500.00
Ltd
Xinfeng Real
Estate Co. Ltd 22717697.73 22717697.73
Shenzhen
Zhentong
Engineering 11332321.45 11332321.45
Co. Ltd
Great wall
properties 1435802.00 1435802.00
Shenzhen
shenfang
bonded trade 4750000.00 4750000.00
Co. Ltd
Shenzhen
huazhan
Construction 6000000.00 6000000.00
Supervision
Co. Ltd
Shenzhen
Lianhua
Enterprise Co. 13458217.05 13458217.05
Ltd
Shenzhen
shenfang group
Longgang 30850000.00 30850000.00
Development
Co. Ltd
Beijing
Xinfeng real
estate
development 64183888.90 64183888.90
and Operation
Co. Ltd
Shantou
Huafeng Real
Estate 16467021.02 16467021.02
Development
Co. Ltd
Baili Co. Ltd 201100.00 201100.00
Burkton
Australia 906630.00 906630.00
104Beginning balance Increase and decrease in the current period Closing balance
Investee Add reducBook value Impairment Inves e Provision for Book value Impairmentvalue ready tment Invest impairment
other value ready
ment
Shenzhen
shenfang
Department 9500000.00 9500000.00
Store Co. Ltd
Shantou
Xinfeng tower 58547652.25 58547652.25
Jianbang 28585102.29 421414897.71 28585102.29 450000000.00
Shenzhen
shenfang
Chuanqi Real
Estate 995000000.00 995000000.00
Development
Co. Ltd
Hualin Co. Ltd 8955.10 8955.10
Sub total 1160766664.14 554754168.86 28585102.29 450000000.00 1132181561.85 133339271.15
(3) Investment in associates and joint ventures
Beginning balance Increase and decrease in the current period
Investmen
book Addition
t gains Other
Investee Provision for al Reduce and losses comprehensivvalu
e impairment investme
investmen recognize e
nts t d under Earningsthe equity adjustment
method
Joint venture
Fengkai Xinghua
Hotel 9455465.38
Sub total 9455465.38
Associates
Shenzhen
ronghua
Electromechanic 1076954.64
al Engineering
Co. Ltd
Shenzhen
Runhua Auto
Trading 1445425.56
Company
Sub total 2522380.20
Total 11977845.58
(Continued)
Investee Increase and decrease in the current period Closing balance
105Other Declaration
equity of cash
Provision book Provision for
changes dividends or
for other
profits impairment
value impairment
Joint venture
Fengkai Xinghua
Hotel 9455465.38
Sub total 9455465.38
Associates
Shenzhen ronghua
Electromechanical
Engineering Co. 1076954.64
Ltd
Shenzhen Runhua
Auto Trading 1445425.56
Company
Sub total 2522380.20
Total 11977845.58
(4) Impairment test of long-term equity investment
1) The recoverable amount is determined at the net amount of fair value minus disposal
expenses
Provision for
Projects book value Recoverable amount impairment in the
current period
Jianbang 28585102.29 28585102.29
Sub total 28585102.29 28585102.29
(Continued)
Projects Determination of fair value and Key parameters and theirdisposal expenses determination basis
The fair value is determined by the Estimated selling price sales
Jianbang asset based method and the relevant volume production cost anddisposal expenses are determined by other related expenses of the
the estimated disposal expense rate product
Sub total
2) Other instructions
At the end of the reporting period the company made an provision impairment test on its
investment to Jianbang company according to its net recoverable amount as Jianbang company
was into bankruptcy in November of 2025.
（2） Notes to items in the profit statement of the parent company
1. Operating income/operating cost
(1) Details
Current period Same period last year
Projects
income cost income cost
106Current period Same period last year
Projects
income cost income cost
Main business 55192364.38 32158574.37 66692989.08 35527944.94
Other business 226373.11 225325.47 55199.50
Total 55418737.49 32383899.84 66748188.58 35527944.94
Among them: revenue
from contracts with 5371428.57 161228.70 8980139.71 1396009.16
customers
(2) Revenue breakdown
1) Revenue from contracts with customers is broken down by type of goods or services
Current period Same period last year
Projects
income cost income cost
real estate 5371428.57 161228.70 8980139.71 1396009.16
Sub total 5371428.57 161228.70 8980139.71 1396009.16
2) Revenue from contracts with customers is broken down by region of operation
Current period Same period last year
Projects
income cost income cost
Guangdong Province 5371428.57 161228.70 8980139.71 1396009.16
Sub total 5371428.57 161228.70 8980139.71 1396009.16
3) Revenue from contracts with customers is broken down by the time goods or services are
transferred
Projects Current period Same period lastyear
Revenue recognized at a certain point 5371428.57 8980139.71
Sub total 5371428.57 8980139.71
(3) Information on performance obligations
Payments Types of
The nature of Is it the assumed by qualityImportant the goods the the company assurance
Projects Time forperformance payment company
main
responsible that are provided byterms undertakes to
transfer person
expected to be the company
refunded to and related
customers obligations
After the
contract is
Selling When goods signed the
goods are delivered contract price
Commercial yes nothing Quality
shall be housing assurance
collected in
advance
When the
general
Provision of When service is
services services are completed it
Leasing yes nothing nothing
provided shall be services
charged
according to
107Payments Types of
The nature of assumed by quality
Time for Important the goods the
Is it the the company assurance
Projects performance payment company
main that are provided by
terms undertakes to responsible
transfer person
expected to be the company
refunded to and related
customers obligations
the contract
(4) The revenue recognized in the current period included in the book value of contract
liabilities at the beginning of the period is 6857.14 yuan.
2. Investment income
Projects Current period Same period lastyear
Investment income from disposal of long-term
equity investment 136518.90 568863.59
Dividend income from investment in other equity
instruments during the holding period 778495.00 777600.00
Total 915013.90 1346463.59
15、 Other supplementary information
（1） Non recurring gains and losses
1. Detailed statement of non recurring gains and losses
Projects money explain
Gains and losses on disposal of non current assets including
the write off part of the provision for asset impairment -151762085.94
Government subsidies included in the current profit and loss
except for government subsidies closely related to the normal
business of the company in line with national policies and
regulations enjoyed in accordance with determined
standards and having a sustained impact on the company's
profit and loss
In addition to the effective hedging business related to the
normal business of the company the gains and losses from
changes in fair value arising from the holding of financial
assets and financial liabilities by non-financial enterprises 16621332.22
and the gains and losses arising from the disposal of financial
assets and financial liabilities
Capital occupancy fees charged to non-financial enterprises
included in current profits and losses
Gains and losses from entrusting others to invest or manage
assets
Gains and losses from entrusted loans
Loss of assets due to force majeure such as natural disasters
Reversal of provision for impairment of receivables subject to
separate impairment test
The investment cost of subsidiaries associates and joint
ventures obtained by the enterprise is less than the income
from the fair value of the identifiable net assets of the
invested entity at the time of obtaining the investment
Current net profit and loss of subsidiaries arising from
business combination under the same control from the
beginning of the period to the merger date
108Gains and losses on non monetary asset exchange
Gains and losses on debt restructuring
One-time expenses incurred by the enterprise because the
relevant business activities are no longer sustainable such as
expenses for resettling employees etc
One-time impact on current profit and loss due to the
adjustment of tax accounting and other laws and regulations
Share based payment expenses confirmed at one time due to
cancellation and modification of equity incentive plan
For cash settled share based payments gains and losses
arising from changes in the fair value of employee salaries
payable after the vesting date
Gains and losses arising from changes in the fair value of
investment real estate measured subsequently using the fair
value model
Gains from transactions with significantly unfair transaction
prices
Gains and losses arising from contingencies unrelated to the
normal business operation of the company
Custody fee income from entrusted operation
Other non operating income and expenses other than the
above items 940511.89
Other profit and loss items that meet the definition of non
recurring profit and loss
Sub total -134200241.83
Less: impact of enterprise income tax (the decrease of income
tax is expressed by "-") 210384.02
Impact on minority shareholders' equity (after tax) -13705.11
Net non recurring gains and losses attributable to owners of
the parent company -134396920.74
2. According to the definitions and principles the non recurring gains and losses listed in
the explanatory announcement on information disclosure of companies offering securities to the
public No.1 - non recurring gains and losses (revised in 2023) are defined as recurring gains and
losses
Projects money reason
Refund of handling fee for Continuous occurrence in each year
withholding individual income tax 31652.46 not accidental is recognized asrecurring gains and losses
（2） Return on equity and earnings per share
1. Details
Weighted average net Earnings per share (yuan/share)
Profit during the reporting period assets Basic earnings per Diluted earnings per
Yield (%) share share
Net profit attributable to ordinary
shareholders of the company 2.81 0.0988 0.0988
Net profit attributable to ordinary
shareholders of the company after
deducting non recurring gains and 6.58 0.2317 0.2317
losses
2. Calculation process of weighted average return on net assets
Projects Serial number Current period
109Projects Serial number Current period
Net profit attributable to ordinary shareholders of the company A 99956003.75
Non recurring gains and losses B -134396920.74
Net profit attributable to ordinary shareholders of the company
after deducting non recurring gains and losses C=A-B 234352924.49
Net assets at the beginning of the period attributable to ordinary
shareholders of the company D 3512112493.42
New net assets attributable to ordinary shareholders of the
company such as issuance of new shares or debt to equity swap E
Cumulative months from the next month of new net assets to the
end of the reporting period F
Net assets attributable to ordinary shareholders of the company
reduced by repurchase or cash dividend G
Cumulative months from the next month of net assets reduction to
the end of the reporting period H
other I 254699.21
other Cumulative months from the next month of
increase or decrease in net assets to the end of the J 6
reporting period
Months during the reporting period K 12
Weighted average net assets L=D+A/2+e x f/K-Gx H/K+I x J/K 3562217844.90
Weighted average return on equity M=A/L 2.81%
Weighted average return on net assets after deducting non
recurring gains and losses N=C/L 6.58%
3. Calculation process of basic earnings per share and diluted earnings per share
(1) Calculation process of basic earnings per share
Projects Serial number Current period
Net profit attributable to ordinary shareholders of the
company A 99956003.75
Non recurring gains and losses B -134396920.74
Net profit attributable to ordinary shareholders of the
company after deducting non recurring gains and losses C=A-B 234352924.49
Total number of shares at the beginning of the period D 1011660000.00
Increase in the number of shares due to the conversion of
provident fund into share capital or stock dividend E
distribution
Issuance of new shares or debt to equity swap to increase the
number of shares F
Cumulative months from the next month after the increase of
shares to the end of the reporting period G
Decrease in the number of shares due to repurchase H
Cumulative months from the next month after the reduction
of shares to the end of the reporting period I
Number of share withdrawals during the reporting period J
Months during the reporting period K 12
110Projects Serial number Current period
Weighted average number of ordinary shares outstanding L=D+e+F X G/K-H xI/K-J 1011660000.00
Basic earnings per share M=A/L 0.0988
Basic earnings per share after deducting non recurring gains
and losses N=C/L 0.2317
(2) Calculation process of diluted earnings per share
The calculation process of diluted earnings per share is the same as that of basic earnings per
share.Shenzhen Special Economic Zone Real Estate (Group) Co. Ltd
March 18 2026
111
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