ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE
& PROPERTIES (GROUP) CO. LTD.INTERIM REPORT 2024
【24 August 2024】
1ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Part I Important Notes Table of Contents and Definitions
The Board of Directors (or the “Board”) the Supervisory Committee as well as the directors
supervisors and senior management of ShenZhen Special Economic Zone Real Estate &
Properties (Group) Co. Ltd. (hereinafter referred to as the “Company”) hereby guarantee the
factuality accuracy and completeness of the contents of this Report and its summary and
shall be jointly and severally liable for any misrepresentations misleading statements or
material omissions therein.Tang Xiaoping the Company’s General Manager Wang Jianfei the Company’s Chief
Financial Officer and Zhou Hongpu head of the Company’s financial department (equivalent
to financial manager) hereby guarantee that the Financial Statements carried in this Report
are factual accurate and complete.All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.Certain descriptions about the Company’s operating plans or work arrangements for the
future mentioned in this Report and its summary the implementation of which is subject to
various factors shall NOT be considered as promises to investors. Therefore investors and
interested parties are reminded to be sufficiently aware of the risks involved and understand
the differences between plans forecasts and promises.The Company has no interim dividend plan either in the form of cash or stock.This Report and its summary have been prepared in both Chinese and English. Should there
be any discrepancies or misunderstandings between the two versions the Chinese versions
shall prevail.
2ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Table of Contents
Part I Important Notes Table of Contents and Defin... 2
Part II Corporate Information and Key Financial In... 6
Part III Management Discussion and Analysis ......... 9
Part IV Corporate Governance ....................... 21
Part V Environmental and Social Responsibility ..... 23
Part VI Significant Events ......................... 24
Part VII Share Changes and Shareholder Information.. 30
Part VIII Preferred Shares ......................... 35
Part IX Bonds ...................................... 36
Part X Financial Statements ........................ 37
3ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Documents Available for Reference
1. The financial statements with the personal signatures and stamps of the Company’s legal
representative Chief Financial Officer and head of the financial department; and
2. The originals of all the documents and announcements disclosed by the Company on Securities
Times China Securities Journal and Ta Kung Pao during the Reporting Period.
4ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Definitions
Term Definition
“Shenzhen SASAC” or the “Municipal The State-owned Assets Supervision and AdministrationSASAC” Commission of the People’s Government of Shenzhen Municipal
SIHC Shenzhen Investment Holdings Co. Ltd.ShenZhen Special Economic Zone Real Estate & Properties (Group)
The “Company” the “Group” “SPG” or
Co. Ltd. and its consolidated subsidiaries except where the context
“we”
otherwise requires
Shenzhen Property Management Shenzhen Property Management Co. Ltd.Petrel Hotel Shenzhen Petrel Hotel Co. Ltd.Zhentong Engineering Shenzhen Zhentong Engineering Co. Ltd.Huazhan Construction Supervision Shenzhen Huazhan Construction Supervision Co. Ltd.Jianbang Group Guangdong Jianbang Group (Huiyang) Industrial Co. Ltd.Chuanqi Real Estate Development Shenzhen SPG Chuanqi Real Estate Development Co. Ltd.
5ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Part II Corporate Information and Key Financial Information
I Corporate Information
Stock name SPG SPG-B Stock code 000029 200029
Stock exchange for stock
Shenzhen Stock Exchange
listing
Company name in Chinese 深圳经济特区房地产(集团)股份有限公司
Abbr. (if any) 深房集团
Company name in English (if
ShenZhen Special Economic Zone Real Estate&Properties (Group) Co. Ltd.any)
Abbr. (if any) SPG
Legal representative Tang Xiaoping
II Contact Information
Board Secretary Securities Representative
Name Luo Yi Hong Lu
47/F SPG Plaza Renmin South Road 47/F SPG Plaza Renmin South Road
Address Luohu District Shenzhen Guangdong Luohu District Shenzhen Guangdong
P.R.China P.R.China
Tel. （86 755）25108897 （86 755）25108837
Fax （86 755）82294024 （86 755）82294024
Email address spg@sfjt.sihc.com.cn spg@sfjt.sihc.com.cn
III Other Information
1. Contact Information of the Company
Indicate by tick mark whether any change occurred to the registered address office address and their zip codes website address
email address and other contact information of the Company in the Reporting Period.□ Applicable □ Not applicable
No change occurred to the said information in the Reporting Period which can be found in the 2023 Annual Report.
2. Media for Information Disclosure and Place where this Report is Kept
Indicate by tick mark whether any change occurred to the information disclosure media and the place for keeping the Company’s
periodic reports in the Reporting Period.□ Applicable □ Not applicable
The website of the stock exchange the media and other websites where the Company’s periodic reports are disclosed as well as
the place for keeping such reports did not change in the Reporting Period. The said information can be found in the 2023 Annua l
Report.
6ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
3. Other Information
Indicate by tick mark whether any change occurred to other information in the Reporting Period.□ Applicable □ Not applicable
IV Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.□ Yes □ No
H1 2024 H1 2023 Change (%)
Operating revenue (RMB) 134225119.43 263616779.07 -49.08%
Net profit attributable to the
listed company’s shareholders 5622791.39 -37118182.81 115.15%
(RMB)
Net profit attributable to the
listed company’s shareholders
-5197127.55-42468909.1587.76%
before exceptional gains and
losses (RMB)
Net cash generated from/used
-108449532.06-192140948.0443.56%
in operating activities (RMB)
Basic earnings per share
0.0056-0.0367115.26%
(RMB/share)
Diluted earnings per share
0.0056-0.0367115.26%
(RMB/share)
Weighted average return on
0.11%-0.94%1.05%
equity (%)
30 June 2024 31 December 2023 Change (%)
Total assets (RMB) 6436151608.29 6485312507.46 -0.76%
Equity attributable to the
listed company’s shareholders 3694698006.21 3691082484.20 0.10%
(RMB)
V Accounting Data Differences under Chinese Accounting Standards (CAS) and
International Financial Reporting Standards (IFRS) and Foreign Accounting Standards
1. Net Profit and Equity Differences under CAS and IFRS
□ Applicable □ Not applicable
No such differences for the Reporting Period.
2. Net Profit and Equity Differences under CAS and Foreign Accounting Standards
□ Applicable □ Not applicable
No such differences for the Reporting Period.XI Exceptional Gains and Losses
□ Applicable □ Not applicable
Unit: RMB
7ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Item Amount Note
Gain or loss on disposal of non-current
assets (inclusive of impairment 223872.34
allowance write-offs)
Government grants recognised in current
profit or loss (exclusive of those that are
closely related to the Company's normal
business operations and given in
83011.12
accordance with defined criteria and in
compliance with government policies
and have a continuing impact on the
Company's profit or loss)
Gain or loss on assets entrusted to other Change in fair value of monetary fund
9721583.19
entities for investment or management investments
Non-operating income and expense other
1158344.96
than the above
Less: Income tax effects 366307.11
Non-controlling interests effects
585.56
(net of tax)
Total 10819918.94
Details of other gains and losses that meet the definition of exceptional gain/loss:
□ Applicable □ Not applicable
No such cases for the Reporting Period.Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the Explanatory Announcement
No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss Items:
□ Applicable □ Not applicable
No such cases for the Reporting Period.
8ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Part III Management Discussion and Analysis
I Principal Activity of the Company in the Reporting Period
(I) Industry review for the Reporting Period
In the first half of 2024 despite the significant increase in the complexity severity and uncertainty of the
external environment and the new challenges brought by continuous deepening of domestic structural
adjustment new economic drivers were formed by such factors as the continuous release of macro-policy
effects the recovery of external demand and the accelerated development of new quality productivity. In the
first half of the year the national economy continued to recover with economic operation achieving stability
and progress overall. In terms of industry the new house market continued the adjustment trend overall
nationwide while the second-hand house market maintained a certain trading scale driven by the strategy of
increasing trading volume by favourable price. However the industry still faced a large downward pressure
overall.(II) Review of the Company’s operations in the Reporting Period
Facing an increasingly complex external context and tougher reform and development tasks in the Reporting
Period the Company focused on “stabilising the main business improving ability and preventing risks” with
all relevant work achieving certain results.
1. In terms of the operation of main business key engineering nodes of the SPG Guangmingli project were fully
advanced as scheduled with all relevant residences being sold out and more than half of the property
management tasks being completed.
2. In terms of ability building the Company formulated the decision management method of “major issuesmajor appointments and dismissals major project investment and use of large amount of funds” organised the
training of middle-level management personnel and reserve talents to improve their leadership completed the
preparation of the Real Estate Development Manual (Trial) and is working to promote the establishment of the
“Good House” information database the Group’s historical real estate database and the database of house types
of typical real estate in the market.
3. In terms of risk prevention the Company properly coped with project operation risks and protected the
Company’s rights and interests through litigation preservation and other means. Additionally the Company
strengthened the management of project safety regularly conducted all kinds of safety inspections and
thoroughly completed the rectification of hazards. The establishment of the Company’s compliance
management system in 2024 is progressing in an orderly manner.
4. In terms of Party building integration the Company promoted all affiliated enterprises to complete the new
round of revision regarding the “Integration of Party Building into the Articles of Association”. Moreover the
Company joined hands with the Bureau of Commerce of Luohu District in conducting investment promotion
9ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
activities and entered into an agreement on joint Party building with Jiabei Community Nanhu Sub-district.Additionally the study and education of Party discipline were carried out through various forms such as special
study by the Party committee centralised discussion by the central group reading seminar and visit to integrity
education base. The Company also regularly conducted reminder talks and integrity talks before the official
assumption of duty in an effort to create a good working environment featuring cleanness and righteousness.The Company is subject to the information disclosure requirements for the real estate industry in the Disciplinary and Regula tory
Guideline No. 3 of the Shenzhen Stock Exchange for Listed Companies—Industry-specific Information Disclosure.New additions to the land bank:
Considerati
Floor area Total land on of the
Name of How the The
Planned Site area with plot price Company’s
land lot or Location
use of land （㎡） ratio
land is Company’s
(RMB’000 interest
project obtained interest
（㎡） 0) (RMB’000
0)
Cumulative land bank:
Floor area available for
Name of project/area Site area（0000 ㎡） Floor area（0000 ㎡）
development（0000 ㎡）
Xinfeng Building in Shantou 0.59 2.66 2.66
Linxinyuan Phase II 2.57 7.72 7.72
Linxinyuan Phase III 4.31 9.57 9.57
Linxinyuan Phase IV 3.23 6.45 6.45
Total 10.70 26.40 26.40
Development status of major projects:
Plann Floor Cumu
ed area Time lativel
Expec
Cumu
The for floor
compl
y ted lative
Name Site
Comp comm % % area
eted total
area compl invest
City/r of Locati in the
Status any’s encem devel constr with eted
invest
mentegion projec on （㎡ Curre mentintere ent of oped ucted plot floor (RMB
t ） ratio nt area (RMBst constr Period ’0000（㎡ ’0000uction （㎡（㎡ ) )））
）
Frame
Linxi
work 11 Under
Huizh nyuan Huiya 51.00 96.00 6427 1597 1157 1119
in June constr 0 0
ou Phase ng
constr % % 8 61 50 05
I 2021 uction
uction
Frame
SPG Guan 19
work Under
Shenz Guan gming 100.0 Januar 88.00 1072 5360 1517 1346
in constr 0 0
hen gming Distri y
constr 0% % 1 5 58 92
li ct 2022 uction
uction
Sales status of major projects:
Floor Pre- Pre-
Floor Floor Cumul Floor
area sale/sa sale/sa
area area atively Cumul area The pre- les les
with availab pre- atively settled Name Compa sold/so revenu revenu
City/re Locati sold/so settled in the
of Status ny’s plot le for ld in e e
gion on
project interes ratio sale
ld floor Curren
the genera settledt （㎡ （㎡floor area t
Curren te in in the
area (㎡) Period） ） t the Curren（㎡ （㎡Period Curren t
10ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024） （㎡ t ） Period
Period (RMB’
）
(RMB’ 0000)
0000)
Longg
Ready
Shenz Cuilin ang 100.00 6011 5613
for 54522 54652 130 204
hen yuan Distric
sale % 1 7
t
Chaoy
Tianyu Ready
Shanto ang 100.00 1534 1603 12070 10913
ewan for 688 431 675 403
u Distric
Phase I sale % 70 72 5 4
t
Tianyu Chaoy
Ready
Shanto ewan ang 100.00 1277 1370
for 39051 1621 869 37839 1267 620
u Phase Distric
sale % 70 59
II t
Huiya
Linxin On
Huizh ng 51.00 1597 1597
yuan pre- 1418
ou Distric
Phase I sale % 61 61
t
Guang
SPG On
Shenz ming 100.00 5360 5197
Guang pre- 34572 4599 10669
hen Distric % 5 5
mingli sale
t
Rental status of major projects:
Cumulative
Name of The Company’s Rentable area rented area Average Location Use
project interest （㎡） occupancy rate
（㎡）
Real Estate
Shenzhen Commercial 100.00% 3413.88 3413.88 100.00%
Mansion
North Tower of
Guoshang Shenzhen Commercial 100.00% 4819.71 4819.71 100.00%
Mansion
Petrel Building Shenzhen Commercial 100.00% 22475.47 22475.47 100.00%
SPG Plaza Shenzhen Office building 100.00% 59425.10 30999.52 52.17%
Podium of SPG
Shenzhen Commercial 100.00% 19886.30 14463.75 72.73%
Plaza
Wenjin Garden Shenzhen Commercial 100.00% 3531.60 3531.60 100.00%
Primary land development:
□ Applicable □ Not applicable
Financing channels:
Ending balance Financing cost Maturity structure (RMB’0000)
Financing
of financings range/average
channel
(RMB’0000) financing cost Within 1 year 1-2 years 2-3 years Over 3 years
Bank loans 11261.85 3.6%-4.2% 5028.22 12.52 12.52 6208.59
Total 11261.85 3.6%-4.2% 5028.22 12.52 12.52 6208.59
Development strategy and operating plan for the coming year:
In the second half of the year the Company will focus on the priorities progress and implementation of the
responsibility letter for business performance targets and strive to make new breakthroughs in various work so
as to continuously stabilise the increasingly enhanced development momentum.
11ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
(I) The Company will strive to promote the sales of existing real estate continuously improve its asset operation
capability pay close attention to the operation of affiliated enterprises and ensure the completion of annual
business tasks.(II) The Company will make every effort to ensure the quality safety and progress of the SPG Guangmingli
project carry on with the special programme of quality and efficiency improvement accelerate the progression
of a series of lawsuits regarding the Linxinyuan project and ensure the effective implementation of annual key
work.(III) The Company will continue to improve its capabilities of corporate governance and market value
management actively promote the establishment of its internal control and compliance systems strengthen the
management of its budgets and cash flow and consolidate its operating foundation.(IV) The Company will conduct the learning and education of Party discipline in a high-quality manner
continue to do well in the construction of corporate leadership the standardisation of grassroots party
organisations and the development of Party members consolidate the political responsibility for full and
rigorous Party self-governance keep improving the “mega supervision” system and lead the high-quality
development of the Company with Party building.Provision of guarantees for homebuyers on bank mortgages:
□ Applicable □ Not applicable
Guarantee amount (RMB’00
Project Guarantee period
00)
Until the property ownership certificate is registered as
Shanglinyuan 45.15
collateral and handed over to bank for keeping
Until the property ownership certificate is registered as
Cuilinyuan 834.67
collateral and handed over to bank for keeping
Until the property ownership certificate is registered as
Chuanqi Donghu Mingyuan 662.04
collateral and handed over to bank for keeping
Until the property ownership certificate is registered as
Tianyuewan 1989.28
collateral and handed over to bank for keeping
Until the property ownership certificate is registered as
Guangmingli 51357.25
collateral and handed over to bank for keeping
Until the property ownership certificate is registered as
Linxinyuan 730.84
collateral and handed over to bank for keeping
Total 55619.24
Joint investments by directors supervisors and senior management and the listed company (applicable for such investments where
the directors supervisors and senior management are the major source of investment):
□ Applicable □ Not applicable
As % of As % of the Cumulat Compatibility
Investment total peak of ive Disinves of actual
Project Type of investor
amount (RMB) investm project returns tment investment
ent funds (RMB) and returns
Director supervisor or
Linxinyuan senior management of 8950000.00 39.25% 0.90% 0.00 N/A N/A
the Company
12ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
II Core Competitiveness Analysis
As the earliest real estate developer founded in the Shenzhen Special Economic Zone the Company helped
build the early city and has created a number of "first places" in the history of real estate development in China.For example the first to use the paid state-owned land the first to introduce the foreign investment for the
cooperative land development the first to raise development funds by means of pre-sale of buildings the first to
carry out public bidding for construction projects in accordance with international practices the first to set up a
property management company to the buildings and residences developed in an all-rounded manner as well as
winning the bid in the new China’s first auction of land use rights held in the Shenzhen Special Economic Zone.After more than 40 years of development the Company has grown into a business group with real estate
development and operation as its main business integrating engineering and construction project supervision
asset management and other diversified operations. It has paid great efforts to the establishment of a modern
enterprise HR management system and works hard in building a professional and high-quality development
team. It also keeps improving the management mechanism and processes for project development. As a result
its planning construction cost control sales ability and brand image have been effectively improved. More
importantly its main business operation ability and core competitiveness have been greatly enhanced.In 2024 the Company was awarded the title as the "2024 Brand Value Enterprise of Shenzhen Real EstateDevelopment Industry" and the SPG Guangmingli Project was awarded the title as the “Shenzhen ConstructionEngineering Safety Production and Civilized Construction Excellent Site”.IV Core Business Analysis
Overview:
See contents under the heading “I Principal Activity of the Company in the Reporting Period” above.Year-on-year changes in key financial data:
Unit: RMB
H1 2024 H1 2023 Change (%) Main reason for change
Operating revenue 134225119.43 263616779.07 -49.08% Decreased revenue from property sales
Decreased revenue from property sales and
Cost of sales 107432457.51 217229426.83 -50.54% corresponding decreased carry-forward
costs
Decreased revenue from property sales and
Selling expense 5445739.08 8790640.18 -38.05%
corresponding decreased selling expense
Administrative Project development and staff structure
27071704.4723453199.4515.43%
expense adjustments
Increased bank balances and deposit interest
Finance costs -5155017.94 -612267.71 -741.95%
income
Income tax expense 218507.36 -2580629.05 108.47% Increased gross profit
Net cash generated Payment of land value-added tax for the
from/used in -108449532.06 -192140948.04 43.56% Chuanqi Donghu Mingyuan project in last
operating activities year
Net cash generated
from/used in -39264136.06 138197734.83 -128.41% Purchase of monetary funds
investing activities
13ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Net cash generated
from/used in -103884505.69 38186866.07 -372.04% Return of bank loans in this year
financing activities
Net increase in cash
Decreased revenue from property sales and
and cash -251595688.62 -15583954.90 -1514.45%
equivalents return of bank loans
Major changes in the profit structure or sources of the Company in the Reporting Period:
□Applicable □ Not applicable
No such cases in the Reporting Period.Breakdown of operating revenue:
Unit: RMB
H1 2024 H1 2023
As % of total As % of total Change (%)
Operating revenue operating revenue Operating revenue operating revenue
(%)(%)
Total 134225119.43 100% 263616779.07 100% -49.08%
By operating division
Property sales 15866847.06 11.82% 72404365.93 27.47% -78.09%
Engineering and
75207523.5956.03%149278954.1356.63%-49.62%
construction
Rental service 38496213.77 28.68% 35655793.46 13.53% 7.97%
Property
1667962.601.24%1579444.440.60%5.60%
management
Other 2986572.41 2.23% 4698221.11 1.78% -36.43%
By product category
Residential units 11145294.67 8.30% 71997900.22 27.31% -84.52%
Shops and parking
4721552.393.52%406465.710.15%1061.61%
lots
Other 118358272.37 88.18% 191212413.14 72.53% -38.10%
By operating segment
Guangdong
133878137.7499.74%263276484.9599.87%-49.15%
Province
Other regions in
0.000.00%0.000.00%
China
Overseas 346981.69 0.26% 340294.12 0.13% 1.97%
Operating division product category or operating segment contributing over 10% of operating revenue or operating profit:
□ Applicable □ Not applicable
Unit: RMB
YoY change in YoY change in YoY change in
Operating Gross profit
Cost of sales operating cost of sales gross profit
revenue margin
revenue (%) (%) margin (%)
By operating division
Property sales 15866847.06 9444411.19 40.48% -78.09% -80.76% 8.27%
Engineering
and 75207523.59 73394216.19 2.41% -49.62% -49.75% 0.26%
construction
Rental service 38496213.77 20415238.79 46.97% 7.97% 13.38% -2.53%
Property
1667962.601255606.4724.72%5.60%-0.87%4.92%
management
Other 2986572.41 2922984.87 2.13% -36.43% 4.19% -38.16%
By product category
Residential
11145294.678412667.5224.52%-84.52%-82.72%-7.86%
units
Shops and
4721552.391031743.6778.15%1061.61%159.44%75.99%
parking lots
14ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Other 118358272.37 97988046.32 17.21% -38.10% -41.73% 5.15%
By operating segment
Guangdong
133878137.74107432457.5119.75%-49.15%-50.54%2.26%
Province
Main business data of the most recent period restated according to changed statistical caliber for the Reporting period
□Applicable □ Not applicable
IV Non-Core Business Analysis
□Applicable □ Not applicable
V Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
30 June 2024 31 December 2023 Change
As a % As a % in Reason for any
Amount of total Amount of total percenta significant change
assets assets ge (%)
Return of bank loans
Monetary assets 615370205.69 9.56% 871019268.83 13.43% -3.87%
in this year
Accounts
85938275.001.34%75100970.831.16%0.18%
receivable
Contract assets 6250878.84 0.10% 27352596.92 0.42% -0.32%
Development of
Inventories 4019777603.21 62.46% 3915215921.96 60.37% 2.09%
projects
Investment
528503549.538.21%541542136.178.35%-0.14%
property
Long-term equity
0.000.00%0.00%
investments
Fixed assets 18955069.88 0.29% 19928049.77 0.31% -0.02%
Construction in
progress
Right-of-use
33213.860.00%99641.480.00%0.00%
assets
Short-term
10310396.090.16%3550000.000.05%0.11%
borrowings
Contract Advance receipts from
1376279056.3221.38%1291448591.2819.91%1.47%
liabilities the sale of properties.Long-term Return of bank loans
62336264.420.97%179431851.022.77%-1.80%
borrowings in this year
Lease liabilities
Held-for-trading
929061785.1114.44%879340201.9213.56%0.88%
financial assets
Accounts payable 403762092.10 6.27% 443259768.78 6.83% -0.56%
Taxes payable 36028327.36 0.56% 40908986.48 0.63% -0.07%
Other payables 559465239.08 8.69% 554469229.59 8.55% 0.14%
2. Major Assets Overseas
□Applicable □ Not applicable
15ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
3. Assets and Liabilities at Fair Value
□ Applicable □ Not applicable
Unit: RMB
Im
pa
ir
m
en
t So
all ld
o in
Ot
w th
Gain/loss on Cumulative he
an e
fair-value fair-value Purchased in the r
ce Re
Item Beginning amount changes in the changes Reporting ch Ending amount
fo po
Reporting charged to Period an
r rti
Period equity ge
th ng
s
e Pe
Re rio
po d
rti
ng
Pe
rio
d
Financial
assets
1. Held-for-
trading
financial
assets
879340201.929721583.1940000000.00929061785.11
(excluding
derivative
financial
assets)
4.
Investments
in other 14324411.35 735928.78 15060340.13
equity
instruments
Total of the
893664613.279721583.19735928.7840000000.00944122125.24
above
Financial
0.000.00
liabilities
Other change
Significant changes to the measurement attributes of the major assets in the Reporting Period:
□Yes □ No
4. Restricted Asset Rights as at the Period-End
Unit: RMB
Item Ending carrying value Reasons
16ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
5817987.13 Project of public facilities inside and surrounding the urban renewal project of Longgang
Monetary District Shenzhen-construction funds; land reclamation expenses of SPG Guangmingli
assets Project
Monetary 1951493.83
Frozen in a lawsuit case assets
Monetary 50000.00
Construction deposit assets
Accounts 19465979.77
Put in pledge for short-term borrowings receivable
Investment 44297197.87
Mortgaged for borrowings
property
Total 71582658.60
VI Investment Analysis
1. Total Investments Made
□Applicable □ Not applicable
2. Significant Equity Investments Made in the Reporting Period
□Applicable □ Not applicable
3. Significant Non-equity Investments Ongoing in the Reporting Period
□Applicable □ Not applicable
4. Financial Investments
(1) Securities Investments
□Applicable □ Not applicable
No such cases in this Reporting Period
(2) Investment in Derivative Financial Instruments
□Applicable □ Not applicable
No such cases in this Reporting Period
5. Use of Funds Raised
□Applicable □ Not applicable
No such cases in this Reporting Period
17ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
VII Sale of Major Assets and Equity Interests
1. Sale of Major Assets
□Applicable □ Not applicable
No such cases in this Reporting Period
2. Sale of Major Equity Interests
□Applicable □ Not applicable
VIII Principal Subsidiaries and Joint Stock Companies
□ Applicable □ Not applicable
Principal subsidiaries and joint stock companies with an over 10% effect on the Company’s net profit:
Unit: RMB
Relationshi Main
Company business Registered Operating Operating p with the Total assets Net assets Net profit
name scope capital revenue profit
Company
Guangdong
Jianbang
Developme - - -
Group 2800000.0 15296665
Subsidiary nt of real 26868937. 0.00 1435932.2 1435932.2
(Huiyang)
estate 0 56.02
Industrial 86 1 1
Co. Ltd.Shenzhen
SPG
Developme
Chuanqi 30000000. 25432124 99375094 3334218.7 3004665.1
Subsidiary nt of real 0.00
Real Estate
estate 00 34.53 4.73 3 6
Developme
nt Co. Ltd.Shenzhen
SPG Developme
30000000.95765243.57816092.3079542.81635230.72352536.1
Longgang Subsidiary nt of real
Developme estate 00 88 80 6 6 9
nt Co. Ltd.Shantou
SEZ
Wellam
Developme
FTY USD1500 80853426. 10317646. - -
Subsidiary nt of real 36398.30
Building
estate 0000.00 72 14 213526.07 213526.07
Developme
nt Co.Ltd.Shantou
Huafeng Developme - -
80000000.7781296010666863.10510825.
Real Estate Subsidiary nt of real 2881159.8 2160869.8
Developme estate 00 8.85 81 00 3 0
nt Co. Ltd.Great Wall -
Rental USD5000 20153133. - -
Estate Co. Subsidiary 92335026. 346981.69
Inc. (U.S.) services 00.00 99 169152.27 169152.27 00
Shenzhen
Zhentong 10000000. 11990475 21975375. 87506253.Subsidiary Installation 389096.27 404821.49
Engineerin 00 0.22 76 43
g Co. Ltd.Shenzhen Rental 30000000. 46790025. 39685858. 8843619.0
Subsidiary 807002.26 757220.54
Petrel services 00 64 54 9
18ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Hotel Co. and
Ltd. property
manageme
nt
Shenzhen
Huazhan
Constructio
Constructio 8000000.0 10445542. 9878523.7 - -
Subsidiary n 967801.48
n
supervision 0 45 5 567623.59 584303.82
Supervisio
n Co. Ltd.Investment
Xin Feng -
and HKD5000 33840286 - -
Enterprise Subsidiary 23330325
manageme
Co. Ltd. 00.00 0.09 952387.67 952387.67
nt 2.43
Subsidiaries obtained or disposed in the Reporting Period:
□Applicable □ Not applicable
Subsidiary How subsidiary was obtained or disposed Effects on overall operations and performance
The enterprise has no actual business and has no
Xin Feng Enterprise
Liquidation and cancellation impact on the operation and performance of the
Co. Ltd.Company
Information about major majority- and minority-owned subsidiaries:
1. In May 2021 through the payment of consideration of RMB450 million the Group acquired 51% equity interest in Guangdong
Jianbang Group (Huiyang) Industrial Co. Ltd. The project company will develop the Linxingyuan Project with a gross site area of
200000 square meters and a total capacity building area of 0.4 million square meters which will be developed in four phases. The
Group has control over the project company which will be included in the scope of consolidation in May 2021. As of 30 June
2024 eight residential buildings of Phase I have been capped the basement of Phase II has been completed the development of
Phase III and Phase IV are to be initiated and construction permit has not been granted for the school. There were no sales in the
first half of 2024.
2. In October 2021 the Company won the bid for a land plot in Guangming District and established the project company Shenzhen
SPG Chuanqi Real Estate Development Co. Ltd. to be responsible for the development and construction of the land. In the first
half of 2024 actual investment totaled RMB123.14 million which was mainly made in main construction and decoration project.
3. The subordinate subsidiaries engaged in real estate development also include: Shenzhen SPG Longgang Development Co. Ltd.
Shantou SEZ Wellam FTY Building Development Co. Ltd. Shantou Huafeng Real Estate Development Co. Ltd. The
Cuilinyuan project developed by Shenzhen SPG Longgang Development Co. Ltd. recorded no sales in the first half of 2024.Jinyedao and YuejingDongfang developed by Shantou SEZ Wellam FTY Building Development Co. Ltd. left a few amount of
remaining buildings for sale. And Shantou Huafeng Real Estate Development Co. Ltd. was responsible for the development of
Tianyuewan project (divided into Phase I and Phase II). Tianyuewan Phase I was open for sale in October 2016 and completed in
December 2019. The Phase II started construction in November 2018 and was completed at the end of June 2021. The overall
sales progress is relatively slow with an accumulated sales rate of about 75% for Phase I and 28% for Phase II.
4. Shenzhen Zhentong Engineering Co. Ltd. was engaged in the business of building installation and maintenance with the H1
2024 operating revenues of RMB87.51 million and of 65.19% to the operating revenues of the Company.
5. The H1 2024 net profit of Xin Feng Enterprise Co. Ltd. was of RMB-952400 which mainly due to the depreciation and
amortization of investment property.IX Structured Bodies Controlled by the Company
□Applicable □ Not applicable
19ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
X Risks Facing the Company and Countermeasures
(I) Macroeconomic risks and countermeasures
In the first half of this year the external environment became more complex severe and uncertain. In the first
half of this year China’s GDP increased by 5.0% year on year. Specifically the growth rate in the second
quarter was slower than that in the first quarter but the fundamentals of stable economic operation and long-
term improvement remained changed. The real estate industry has a greater correlation with the macroeconomy
and is more influenced by the macroeconomic cycle. The Company will continue paying close attention to the
international and domestic macroeconomic situations and proactively adjust its operation strategies.(II) Industry development risks and countermeasures
At this stage in the real estate industry although the financing environment has improved and the policies are
sustained favorable during an upcoming period the market is still in the bottoming out phase and potential
industry risks still exist resources will continue flowing to leading quality enterprises the industry competition
pattern will present a new situation. The Company will continue deepening the research on industry policies
following national strategy optimizing the development method and innovating its operating model.(III) Business operating risks and countermeasures
The continuous downturn in the property market has led to increased difficulties in the sale of the Company's
inventory projects meanwhile the Company's existing reserves of development land resources are insufficient
and the expansion of new business has not yet yielded substantial results thus putting pressure on the enterprise
for its operation and development. The Company will pay close attention to changes in the market and industry
policies focus on project construction and property sales formulate targeted land expansion plans consolidate
the foundation of the core business and proactively explore new paths in line with the actual development of
the Company.XI Implementation of the Action Plan for “Dual Enhancement of Quality and Profitability”
Has the Company disclosed its Action Plan for “Dual Enhancement of Quality and Profitability”
□Yes □No
20ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Part IV Corporate Governance
I Annual and Extraordinary General Meeting Convened during the Reporting Period
1. General Meetings Convened during the Reporting Period
Investor
Meeting Type participati Convened date Disclosure date Resolution of meeting
on ratio
Resolutions of First
The First Extraordinary General
Extraordinary Extraordinary Meeting in 2024 disclosed
General General 62.46% 22 February 2024 23 February 2024 on China Securities
Meeting in Meeting Securities Times and
2024 www.cninfo.com.cn (No.:
2024-005)
Resolutions of 2023
Annual General Meeting
The 2023 disclosed on China
Annual General
Annual General 62.48% 17 May 2024 18 May 2024 Securities Securities
Meeting
Meeting Times and
www.cninfo.com.cn (No.:
2024-020)
2. Extraordinary General Meeting Convened at Request of Preference Shareholders with Resumed
Voting Rights
□Applicable □ Not applicable
II Change of Directors Supervisors and Senior Management
□Applicable □ Not applicable
Name Office title Type Date Reason
Serving as an independent director of
Independent
Kang Xiaoyue Left office 17 May 2024 the Company for six consecutive
director
years
Independent
Liu Haifeng Elected 17 May 2024
director
Employee
Lin Jun Left office 15 May 2024 Retirement
supervisor
Employee
Xu Fangming Elected 15 May 2024
supervisor
III Interim Dividend Plan
□Applicable □ Not applicable
The Company has no interim dividend plan either in the form of cash or stock.
21ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
IV Equity Incentive Plans Employee Stock Ownership Plans or Other Incentive Measures
for Employees
□Applicable □ Not applicable
No such cases in the Reporting Period.
22ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Part V Environmental and Social Responsibility
I Major Environmental Issues
Indicate by tick mark whether the Company or any of its subsidiaries is a heavily polluting business identified by the
environmental protection authorities of China.□Yes □ No
Administrative penalties imposed for environmental problems during the Reporting Period
Influence on
Rectification
Name Reason Case Result production and
measures
operation
N/A N/A N/A N/A N/A N/A
Other environmental information disclosed with reference to the heavily polluting business
The Company and its subsidiaries are not imposed any administrative penalties for environmental problems during the Reporting
Period.Measures taken to decrease carbon emission in the Reporting Period and corresponding effects
□Applicable □ Not applicable
Reason for failure of disclosing other environmental information
The Company and its subsidiaries are not heavily polluting business identified by the environmental protection authorities of
China.II Social Responsibility
While pursuing economic benefits and protecting the interests of shareholders the Company proactively
fulfilled its social responsibilities demonstrating the Company’s social value and responsibilities. During theReporting Period the Company proactively participated in the “Support for Family Planning and Care forFamilies in Need” donation campaign in Jiabei Community actively purchased agricultural and sideline
products for consumer assistance to contribute to the consumer assistance and rural revitalisation work in
Shenzhen and regularly organised emergency evacuation drills for commercial tenants in properties under its
jurisdiction to enhance public awareness of fire safety.
23ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Part VI Significant Events
I Commitments of the Company’s De Facto Controller Shareholders Related Parties and
Acquirers as well as the Company Itself and Other Entities Fulfilled in the Reporting
Period or Ongoing at the Period-End
□Applicable □ Not applicable
No such cases in the Reporting Period.II Occupation of the Company’s Capital by the Controlling Shareholder or any of Its
Related Parties for Non-Operating Purposes
□Applicable □ Not applicable
No such cases in the Reporting Period.III Irregularities in the Provision of Guarantees
□Applicable □ Not applicable
No such cases in the Reporting Period.IV Engagement and Disengagement of Independent Auditor
Are the interim financial statements audited
□Yes □ No
The interim financial statements have not been audited.V Explanations Given by the Board of Directors and the Supervisory Committee Regarding
the Independent Auditor's “Modified Opinion” on the Financial Statements of the
Reporting Period
□Applicable □ Not applicable
VI Explanations Given by the Board of Directors Regarding the Independent Auditor's
“Modified Opinion” on the Financial Statements of Last Year
□Applicable □ Not applicable
VII Insolvency and Reorganization
□Applicable □ Not applicable
No such cases in the Reporting Period.VIII Legal Matters
Significant lawsuits and arbitrations:
24ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
□ Applicable □ Not applicable
Involved
General Index to
amount Provis Execution of Disclosure
informati Progress Decisions and effects disclosed
(RMB’000 ion decisions date
on information
0)
Shaanxi High
People’s Court
? Xi’an Business
Sold all assets of
Tourism Company
Business
Limited (hereinafterreferred to as “Business Company byCompany”) had to pay for auction in
the compensation accordance with
RMB36.62 million and laws in 2004.the relevant interest (from Xi’an Fresh Peak
14 September 1998 to the
Company has
payment day) to Xi’an
Fresh Peak Company received
within one month after the RMB15.201 Annual
judgment entering into million. Now Report 2023
Xi’an In
force. If the Business Business 30 March (No.: 2024-
Project 2154 No executio Company failed to pay in Company has no 2024 009) on
Lawsuit n time it had to pay double
executable www.cninfo.debt interests to Xi’an
properties and com.cn
Fresh Peak Company for
the overdue period; * Xi’an Joint
Xi’an Joint Commission Commission on
on Commerce had jointly Commerce has
and severally obligation been refusing to
of the interests of the execute the ruling.compensation; .* It is difficult to
Business Company shall
recover the rest.bear RMB227500 of the
acceptance fee and the The case is at the
security fee. final stage of the
enforcement
proceedings.As Jianbang Group is
incapable of paying the
commercial bills due in Huizhou
January 2022 which total Mingxiang
RMB177151400 Economic
Huizhou Mingxiang Information
Economic Information Consulting Co.Consulting Co. Ltd. Ltd. Huizhou
Annual
Huizhou Huiyang Hongfa Huiyang Hongfa
Report 2023
Lawsuit In Industry & Trade Co. Industry and
30 March (No.: 2024-
of bill 17715.14 No executio Ltd. and Huizhou Trade Co. Ltd.
2024 009) on
dispute n Jinlongsheng Industrial and Huizhou
www.cninfo.Co. Ltd. brought a Jinlongsheng
com.cn
lawsuit on the bill dispute Industrial Co.to the People’s Court of Ltd. have applied
Huiyang District. The to Huizhou
Huiyang District Court Intermediate
ruled at first instance in People's Court for
March 2023 that Jianbang execution.should pay the acceptance
bill amount and interest.Contractu Judgme In January 2024 the Announceme
The judgment of
al nt was Company received a civil 3 February nt on the
39568.85 No the first instance
disputes rendered judgment of the first 2024 Progress of
has taken effect.over in the instance issued by the Litigation
25ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
loans first Shenzhen Luohu District Matters (No.:
instance People's Court. 2024-003) on
www.cninfo.com.cn
Joint
venture
Announceme
and
nt on
cooperati The first
The case was heard in Litigation
ve real trial has The first trial has 8 December
74357.5 No February 2024 and has Matters (No.:
estate been been held 2023
not yet been decided. 2023-048) on
developm held
www.cninfo.ent
com.cn
contract
disputes
Announceme
The case received the first
Contractu nt on
instance judgment in June
al The second trial Litigation
Second 2024 and entered the 13 January
disputes 41952.29 No has not yet been Matters (No.:
instance second instance procedure 2024
over filed 2024-001) on
due to the defendant's
loans www.cninfo.appeal.com.cn
Other legal matters:
□Applicable □ Not applicable
IX Punishments and Rectifications
□Applicable □ Not applicable
No such cases in the Reporting Period.X Credit Quality of the Company as well as its Controlling Shareholder and De Facto
Controller
□Applicable □ Not applicable
XI Major Related-Party Transactions
1. Continuing Related-Party Transactions
□Applicable □ Not applicable
No such cases in the Reporting Period.
2. Related-Party Transactions Regarding Purchase or Sales of Assets or Equity Interests
□Applicable □ Not applicable
No such cases in the Reporting Period.
3. Related Transactions Regarding Joint Investments in Third Parties
□Applicable □ Not applicable
No such cases in the Reporting Period.
26ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
4. Amounts Due to and from Related Parties
□Applicable □ Not applicable
No such cases in the Reporting Period.
5. Transactions with Related Finance Companies
□Applicable □ Not applicable
The Company did not make deposits in receive loans or credit from and was not involved in any other finance business with any
related finance company or any other related parties.
6. Transactions with Related Parties by Finance Companies Controlled by the Company
□Applicable □ Not applicable
The finance company controlled by the Company did not make deposits receive loans or credit from and was not involved in any
other finance business with any related parties.
7. Other Major Related-Party Transactions
□Applicable □ Not applicable
No such cases in the Reporting Period.XII Major Contracts and Execution thereof
1. Entrustment Contracting and Leases
(1) Entrustment
□Applicable □ Not applicable
No such cases in the Reporting Period.
(2) Contracting
□Applicable □ Not applicable
No such cases in the Reporting Period.
(3) Leases
□Applicable □ Not applicable
No such cases in the Reporting Period.
2. Major Guarantees
□ Applicable □ Not applicable
Unit: RMB’0000
Guarantees provided by the Company as the parent and its subsidiaries for external parties (exclusive of those for subsidiaries)
Obligor Disclosu Line of Actual Actual Type of Collatera Counter Term of Having Guarante
27ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
re date guarante occurren guarante guarante l (if any) guarante guarante expired e for a
of the e ce date e e e (if any) e or not related
guarante amount party or
e line not
announc
ement
Guarantees provided by the Company as the parent for its subsidiaries
Disclosu
re date Guarante
Actual
of the Line of Actual Type of Counter Term of Having e for a
guarante Collatera
Obligor guarante guarante occurren guarante guarante guarante expired related
e
e line e ce date e l (if any)
amount e (if any)
e or not party or
announc not
ement
From the
date of
signing
100%
the
equity
guarante
interests
e
of
Shenzhe contract
Shenzhe
n SPG to the
n SPG
Chuanqi date
18 Chuanqi
Real 17 June when all
March 50000 5015.7 Pledge Real Not Not
Estate 2022 guarante
2022 Estate
Develop ed debts
Develop
ment are
ment
Co. Ltd. uncondit
Co. Ltd.ionally
held by
and
the
irrevoca
Compan
bly paid
y
off in
full.Total approved line Total actual amount
for such guarantees of such guarantees in
in the Reporting the Reporting Period
Period (B1) (B2)
Total approved line Total actual balance
for such guarantees of such guarantees at
at the end of the 50000 the end of the 5015.7
Reporting Period Reporting Period
(B3) (B4)
Guarantees provided between subsidiaries
Disclosu
re date Guarante
Actual
of the Line of Actual Type of Counter Term of Having e for a
guarante Collatera
Obligor guarante guarante occurren guarante guarante guarante expired related
e
e line e ce date e l (if any) e (if any) e or not party or amount
announc not
ement
Total guarantee amount (total of the three kinds of guarantees above)
Total guarantee line Total actual
approved in the guarantee amount in
Reporting Period the Reporting Period
(A1+B1+C1) (A2+B2+C2)
Total actual
Total approved
guarantee balance at
guarantee line at the
50000 the end of the 5015.7
end of the Reporting
Reporting Period
Period (A3+B3+C3)
(A4+B4+C4)
28ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Total actual guarantee amount (A4+B4+C4)
1.36%
as % of the Company’s net assets
Of which:
3. Cash Entrusted for Wealth Management
□ Applicable □ Not applicable
Unit: RMB’0000
Unrecovered
Unrecovered overdue amount
Type Funding source Amount Undue amount
overdue amount with provision for
impairment
Other Self-funded 92906.18 92906.18 0 0
Total 92906.18 92906.18 0 0
High-risk entrusted wealth management with significant single amount or low security and poor liquidity:
□Applicable □ Not applicable
Whether there is the case where the principal cannot be recovered at maturity or other case which may cause impairment for
entrusted wealth management
□Applicable □ Not applicable
4. Other Significant Contracts
□Applicable □ Not applicable
No such cases in the Reporting Period.XIII Other Significant Events
SIHC the controlling shareholder of the Company intends to transfer 71498100 shares of the Company (7.07%
of the total share capital of the Company) held by it to China Orient Asset Management Co. Ltd. through
transfer by agreement. This share transfer by agreement is subject to the approval by the concerned state-owned
assets regulatory authority the compliance confirmation by the Shenzhen Stock Exchange and the application
for share transfer registration with China Securities Depository and Clearing Corporation Limited. Therefore it
is still uncertain whether this share transfer by agreement can be successfully completed. For details please
refer to the Suggestive Announcement on Transfer by Agreement of Part of the Company’s Shares by the
Controlling Shareholder and Consequent Change in Equity (Announcement No.: 2024-021) disclosed by the
Company on 29 June 2024.XIV Significant Events of Subsidiaries
□Applicable □ Not applicable
29ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Part VII Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
Before Increase/decrease (+/-) in the current period After
Shares as
Shares as
dividend
dividend Percentag New converted Percentag
Shares converted Other Subtotal Shares
e (%) issues from e (%)
from
capital
profit
reserves
1.
Restricted 0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00%
shares
1.1
Shares
0.000.00%0.000.000.000.000.000.000.00%
held by
the state
1.2
Shares
held by
0.000.00%0.000.000.000.000.000.000.00%
state-own
legal
person
1.3
Shares
held by
0.000.00%0.000.000.000.000.000.000.00%
other
domestic
investors
Amo
ng which:
shares
held by 0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00%
domestic
legal
person
Sh
ares held
by
0.000.00%0.000.000.000.000.000.000.00%
domestic
natural
person
1.4
Oversea
0.000.00%0.000.000.000.000.000.000.00%
sharehold
ings
Amo 0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00%
30ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
ng which:
shares
held by
oversea
legal
person
Sh
ares held
by
0.000.00%0.000.000.000.000.000.000.00%
oversea
natural
person
2.
10116601011660
Unrestrict 100.00% 0.00 0.00 0.00 0.00 0.00 100.00%
000.00000.00
ed shares
2.1
RMB 8916600 8916600
88.14%0.000.000.000.000.0088.14%
ordinary 00.00 00.00
shares
2.2
Domestic
12000001200000
ally listed 11.86% 0.00 0.00 0.00 0.00 0.00 11.86%
00.0000.00
foreign
shares
2.3
Oversea
listed 0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00%
foreign
shares
2.4
0.000.00%0.000.000.000.000.000.000.00%
Other
3. Total 1011660 1011660
100.00%0.000.000.000.000.00100.00%
shares 000.00 000.00
Reasons for share changes:
□Applicable □ Not applicable
Approval of share changes:
□Applicable □ Not applicable
Transfer of share ownership:
□Applicable □ Not applicable
Progress on any share repurchase:
□Applicable □ Not applicable
Progress on reducing the repurchased shares by means of centralized bidding:
□Applicable □ Not applicable
Effects of share changes on the basic and diluted earnings per share equity per share attributable to the Company’s ordinary
shareholders and other financial indicators of the prior year and the prior accounting period respectively:
□Applicable □ Not applicable
Other information that the Company considers necessary or is required by the securities regulator to be disclosed:
□Applicable □ Not applicable
31ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
2. Changes in Restricted Shares
□Applicable □ Not applicable
II. Issuance and Listing of Securities
□Applicable □ Not applicable
III. Total Number of Shareholders and Their Shareholdings
Unit: share
Total number of ordinary Total number of preference shareholders with resumed
415800
shareholders at the period-end voting rights at the period-end
Shareholding of ordinary shareholders holding more than 5% shares or the top 10 of ordinary shareholders (exclusive of shares
lent in refinancing)
Shares in
pledge
marked or
Increase/d
Sharehold Restricted frozen
Total ordinary ecrease in Non-restricted
Nature of ing ordinary S
Name of shareholder shares held at the ordinary
shareholder percentag shares h
the period-end Reporting shares held
e held a
Period Status
r
e
s
Shenzhen Investment State-owned
55.78% 564353838 0 0 564353838 N/A 0
Holdings Co. Ltd. corporation
Shenzhen State-
Domestic
Owned Equity
non-state-
Operation and 6.35% 64288426 0 0 64288426 N/A 0
owned legal
Management Co.person
Ltd.Domestic
Yang Jianmin natural 1.19% 12069817 932840 0 12069817 N/A 0
person
Domestic
Zhang Xiujuan natural 0.47% 4760400 0 0 4760400 N/A 0
person
Domestic
Wang Yulan natural 0.46% 4612991 185800 0 4612991 N/A 0
person
Hong Kong
Foreign
Securities Clearing 0.43% 4331445 184642 0 4331445 N/A 0
legal person
Company Ltd.Domestic
He Qiao natural 0.36% 3652486 -236400 0 3652486 N/A 0
person
Domestic
Wang Zhengying natural 0.29% 2918100 0 0 2918100 N/A 0
person
Industrial and
Commercial Bank of
China Co. Ltd.-
China Southern CSI
Other 0.27% 2681800 593400 0 2681800 N/A 0
All-Index Real Estate
Traded Open-End
Index Securities
Investment Fund
32ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Domestic
Zhang Zi natural 0.26% 2579800 -4900 0 2579800 N/A 0
person
Strategic investor or general legal person becoming a top-10 ordinary
N/A
shareholder due to rights issue
Among the top 10 shareholders of the Company
Shenzhen State-owned Equity Management Co. Ltd. is
a wholly-owned subsidiary of Shenzhen Investment
Holdings Co. Ltd. The Company does not know
Related or acting-in-concert parties among the shareholders above
whether there exists associated relationship among the
other shareholders or whether they are persons acting
in concert as prescribed in the Administrative Measures
for the Acquisition of Listed Companies.Explain if any of the shareholders above was involved in
N/A
entrusting/being entrusted with voting rights or waiving voting rights
Special account for share repurchases among the top 10 shareholders N/A
Top 10 unrestricted ordinary shareholders (exclusive of shares lent in refinancing and executive lock-in shares)
Unrestricted ordinary Shares by type
Name of shareholder shares held at the
Type Shares
period-end
RMB ordinary
Shenzhen Investment Holdings Co. Ltd. 564353838 564353838
shares
Shenzhen State-Owned Equity Operation and Management RMB ordinary
6428842664288426
Co. Ltd. shares
RMB ordinary
Yang Jianmin 12069817 12069817
shares
RMB ordinary
Zhang Xiujuan 4760400 4760400
shares
RMB ordinary
Wang Yulan 4612991 4612991
shares
RMB ordinary
Hong Kong Securities Clearing Company Ltd. 4331445 4331445
shares
RMB ordinary
3495600
shares
He Qiao 3652486 Domestically
listed foreign 156886
shares
RMB ordinary
Wang Zhengying 2918100 2918100
shares
Industrial and Commercial Bank of China Co. Ltd.- China
RMB ordinary
Southern CSI All-Index Real Estate Traded Open-End Index 2681800 2681800
shares
Securities Investment Fund
RMB ordinary
Zhang Zi 2579800 2579800
shares
Related or acting-in-concert
parties among top 10 Among the top 10 unrestricted public shareholders of the Company Shenzhen State-owned
unrestricted public Equity Management Co. Ltd. is a wholly-owned subsidiary of Shenzhen Investment Holdings
shareholders as well as Co. Ltd. The Company does not know whether there exists associated relationship among the
between top 10 unrestricted other shareholders or whether they are persons acting in concert as prescribed in the
public shareholders and top
Administrative Measures for the Acquisition of Listed Companies.
10 shareholders
Top 10 ordinary shareholders Among the top 10 shareholders of the Company the third fourth seventh eighth and tenth
involved in securities margin shareholders held 9804200 shares 4760400 shares 3332000 shares 2918100 shares and
trading 2496600 shares in their respective credit securities accounts.
5% or greater shareholders top 10 shareholders and Top 10 unrestricted shareholders involved in refinancing shares lending
□Applicable □ Not applicable
Changes in top 10 shareholders and top 10 unrestricted shareholders due to refinancing shares lending/return compared with the
prior period
□Applicable □ Not applicable
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the
33ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Company conducted any promissory repo during the Reporting Period.□Yes □ No
No such cases in the Reporting Period.IV Change in Shareholdings of Directors Supervisors and Senior Management
□Applicable □ Not applicable
No changes occurred to the shareholdings of the directors supervisors and senior management in the Reporting Period. See the
2023 Annual Report for more details.
V Change of the Controlling Shareholder or the De Facto Controller
Change of the controlling shareholder in the Reporting Period
□Applicable □ Not applicable
No such cases in the Reporting Period.Change of the de facto controller in the Reporting Period
□Applicable □ Not applicable
No such cases in the Reporting Period.
34ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Part VIII Preference Shares
□Applicable □ Not applicable
No preference shares in the Reporting Period.
35ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Part IX Bonds
□Applicable □ Not applicable
36ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Part X. Financial Statements
I. Auditor’s Report
Whether the semi-annual report has been audited
□ Yes √ No
The semi-annual report of the Company has not been audited.II. Financial Statements
The financial statements of the company have been prepared in China Yuan.
1. Consolidated Statement of Financial Position
Prepared by Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd
As at 30 June 2024
Presented in RMB
Items 30 June 2024 1 January 2024
Current assets:
Cash at bank and on hand 615370205.69 871019268.83
Provision of Settlement fund
Funds lent
Financial assets held for trading 929061785.11 879340201.92
Derivative financial assets
Notes receivable
Accounts receivable 85938275.00 75100970.83
Accounts receivable financing
Prepayments 418741.86 409192.07
Insurance premiums receivables
Cession premiums receivables
Provision of cession premiums
Other receivables 16772800.21 15893736.28
Including: Interest receivable
Dividends receivable
Recoursable Financial assets
acquired
Inventories 4019777603.21 3915215921.96
Contractual assets
Assets held for sale 6250878.84 27352596.92
Non-current assets due within one
year
Other current assets
Total current assets 162393163.37 87175263.06
Non-current assets: 5835983453.29 5871507151.87
Loans and payments
Debt investment
Investments in other debt
37ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
obligations
Long-term receivables
Long-term equity investments
Investments in other equity
instrument
Other non-current financial assets 15060340.13 14324411.35
Investment property
Fixed assets 528503549.53 541542136.17
Construction in progress 18955069.88 19928049.77
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 33213.86 99641.48
Development costs
Goodwill
Long-term deferred expense
Deferred tax assets
Other non-current assets
Total non-current assets 1214840.82 1598305.56
Total assets 36401140.78 36312811.26
Current liabilities:
Short-term loans 600168155.00 613805355.59
Borrowings from central bank 6436151608.29 6485312507.46
Deposit funds
Financial liabilities held for
10310396.093550000.00
trading
Derivative financial liabilities
Notes payable
Accounts payable
Advances from customers
Contractual liabilities
Funds from sale of financial
assets with repurchase 403762092.10 443259768.78
agreements
Deposits from customer and inter-
337777.18420724.30
bank
Funds received as an agent of
1376279056.321291448591.28
stock exchange
Funds received as stock
underwrite
Payroll payable
Tax payable
Other payables
Including: Interest payable 23262410.83 22247017.36
Dividends payable 36028327.36 40908986.48
Handling charges and
559465239.08554469229.59
commissions payable
Cession premiums payables 16535277.94 16535277.94
Liabilities held for sale
Non-current liabilities due within
one year
Other current liabilities
38ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Total current liabilities
Non-current liabilities: 50316649.66 34056347.93
Provision for insurance contracts 132138332.74 136364529.76
Long-term loans 2591900281.36 2526725195.48
Debentures payable
Including: Preferred shares
Perpetual bonds 62336264.42 179431851.02
Lease liabilities
Long-term payables
Long-term employee benefits
payable
Provisions
Deferred income
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 3012566.54 3012566.54
Equity:
Share capital 65348830.96 182444417.56
Other equity instruments 2657249112.32 2709169613.04
Including: Preferred shares
Perpetual bonds 1011660000.00 1011660000.00
Capital reserves
Less: treasury shares
Other comprehensive income
Specific reserve 978244910.11 978244910.11
Surplus reserve
Generic Risk Reserve 23312190.06 25319459.44
Retained earnings
Total equity attributable to
275253729.26275253729.26
shareholders of the company
Non-controlling interests
Total equity 1406227176.78 1400604385.39
Total liabilities and equity 3694698006.21 3691082484.20
Items 84204489.76 85060410.22
Current assets: 3778902495.97 3776142894.42
Cash at bank and on hand 6436151608.29 6485312507.46
Legal representative: Xiaoping Tang General Accountant:JianFei Wang The head of the accounting
department: Hongpu Zhou
2. Financial Position Statement of the Parent Entity
Presented in RMB
Items 30 June 2024 1 January 2024
Current assets:
Cash at bank and on hand 107401503.32 116977480.94
Financial assets held for trading 929061785.11 879340201.92
Derivative financial assets
Notes receivable
Accounts receivable 6034801.67 9750885.01
39ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Accounts receivable financing
Prepayments 0.00 200000.00
Other receivables 1704765741.05 1723164380.70
Including: Interest receivable
Dividends receivable 29222722.88 29222722.88
Inventories 321218.69 315818.69
Including: Data resources
Contractual assets
Assets held for sale
Non-current assets due within one
year
Other current assets 3365536.87 810142.59
Total current assets 2750950586.71 2730558909.85
Non-current assets:
Debt investment
Investments in other debt
obligations
Long-term receivables
Long-term equity investments 1323365748.39 1323365748.39
Investments in other equity
15060340.1314324411.35
instruments
Other non-current financial assets
Investment property 421519089.86 433172839.90
Fixed assets 11736632.73 12683997.76
Construction in progress
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets
Development costs
Goodwill
Long-term deferred expense 970235.74 1170295.66
Deferred tax assets 792735.07 792735.07
Other non-current assets
Total non-current assets 1773444781.92 1785510028.13
Total assets 4524395368.63 4516068937.98
Current liabilities:
Short-term loans
Financial liabilities held for
trading
Derivative financial liabilities
Notes payable
Accounts payable 11437096.98 17535100.83
Advances from customers
Contractual liabilities 88985.71 88985.71
Payroll payable 14903166.51 13431614.17
Tax payable 24289577.21 28060321.09
Other payables 771459948.32 759312118.85
Including: Interest payable 16535277.94 16535277.94
Dividends payable
40ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Liabilities held for sale
Non-current liabilities due within
125173.20375269.30
one year
Other current liabilities 4449.29 4449.29
Total current liabilities 822308397.22 818807859.24
Non-current liabilities:
Long-term loans 62336264.42 62398851.02
Debentures payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee benefits
payable
Provisions
Deferred income
Deferred tax liabilities 3012566.54 3012566.54
Other non-current liabilities
Total non-current liabilities 65348830.96 65411417.56
Total liabilities 887657228.18 884219276.80
Equity:
Share capital 1011660000.00 1011660000.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 964711931.13 964711931.13
Less: treasury shares
Other comprehensive income 2479237.29 1743308.51
Specific reserve
Surplus reserve 252124115.85 252124115.85
Retained earnings 1405762856.18 1401610305.69
Total equity 3636738140.45 3631849661.18
Total liabilities and equity 4524395368.63 4516068937.98
3. Consolidated Statement of Profit or Loss and Other Comprehensive Income
Presented in RMB
Items 6 months ended 30 June 2024 6 months ended 30 June 2023
1. Revenue 134225119.43 263616779.07
Including: Operating revenue 134225119.43 263616779.07
Interest income
Insurance premium income
Handling charge and
commission income
2. Expenses 141726383.25 310757866.31
Including: operating expenses 107432457.51 217229426.83
Interest expense
Handling charge and
commission expense
Refund of Insurance premium
41ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Net payment for insurance
claims
Net provision for insurance
contracts
Commissions on insurance
polices
Cession charges
Taxes and surcharges 6931500.13 61896867.56
Selling and distribution expense 5445739.08 8790640.18
General and administrative
27071704.4723453199.45
expenses
Research and development
expense
Financial expense -5155017.94 -612267.71
Including: Interest expense 888171.77
Interest income 4839207.82 716366.12
Add: Other income 83011.12 123732.31
Investment income (“-” for
777600.001806314.48
losses)
Including: Income from
investment in associates and joint
ventures (“-” for losses)
Income from derecognition of
financial assets at amortized cost
(“-” for loss)
Foreign exchange gain (“-” for
loss)Net gain on exposure hedges (“-” for loss)
Gains from changes in fair value
9721583.193477115.56
(“-” for losses)
Credit impairment loss (“-” for
-28831.96529176.78
loss)
Impairment losses (“-” for
652630.46
losses)
Gains from assets disposal (“-”
223872.340.00
for losses)
3. Operating profit (“-” for loss) 3928601.33 -41204748.11
Add: Non-operating income 1188528.59 17476.72
Less: Non-operating expense 30183.63 51480.63
4. Profit before income tax (“-” for
5086946.29-41238752.02
losses)
Less: Income tax expense 218507.36 -2580629.05
5. Net profit for the year (“-” for
4868438.93-38658122.97
net losses)
5.1 Classification according to
operation continuity
42ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
5.1.1 Net profit from
continuing operations (“-” for net 4868438.93 -38658122.97
loss)
5.1.2Net profit from
discontinued operations (“-” for net
loss)
5.2 Classification according to
attribute
5.2.1 Members of the parent
5622791.39-37118182.81
shareholders ("-" for net loss)
5.2.2 Non-controlling
-754352.46-1539940.16
interests (“-” for net loss)
6. Other comprehensive income
-2108837.38-2683340.99
(net of tax)
Other comprehensive income
(net of tax) attributable to members -2007269.38 -1772722.17
of the parent entity
6.1 Other comprehensive
income
735928.78352055.06
Items that will not be reclassified
subsequently to profit or loss
6.1.1 Remeasurement of
defined benefit plan liability or
asset
6.1.2 Other comprehensive
income that cannot be transferred
to profit or loss under the equity
method
6.1.3 Changes in the fair value
of investments in other equity 735928.78 352055.06
instruments
6.1.4 Changes in the fair value
of the company’s credit risks
6.1.5 Other
6.2 Other comprehensive
income Items that may be
-2743198.16-2124777.23
reclassified subsequently to profit
or loss
6.2.1 Other comprehensive
income that can be transferred to
profit or loss under equity method
6.2.2 Changes in the fair value
of investments in other debt
obligations
6.2.3 Other comprehensive
income arising from the
reclassification of financial assets
6.2.4 Provision for credit
impairments in other debt
investment
6.2.5 Effective portion of
43ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
gains or losses arising from cash
flow hedging instruments
6.2.6 Translation differences
arising from translation of foreign -2743198.16 -2124777.23
currency financial statements
6.2.7 Other
Other comprehensive income (net
of tax) attributable to non- -101568.00 -910618.82
controlling interests
7. Total comprehensive income for
2759601.55-41341463.96
the period
Attributable to members of parent
3615522.01-38890904.98
entity
Attributable to non-controlling
-855920.46-2450558.98
interests
8. Earnings per share
8.1 Basic earnings per share 0.0056 -0.0367
8.2 Diluted earnings per share 0.0056 -0.0367
In a business combination involving enterprises under common control (net losses)/net profit of combined
parties before the combination date is RMB 0.00 and (net losses)/net profit of combined parties in prior period
is RMB 0.00.Legal representative: Xiaoping Tang General Accountant:JianFei Wang The head of the accounting
department: Hongpu Zhou
4. Statement of Profit or Loss and Other Comprehensive Income For the Parent Entity
Presented in RMB
6 months ended 30 June 6 months ended 30 June
Items
20242023
1. Revenue 32477256.72 45811654.36
Less: Cost of sales 14063038.19 14351721.51
Taxes and surcharges 5603750.17 4234420.47
Selling and distribution expense 956228.79 620765.04
General and administrative
19465929.6612792471.19
expenses
Research and development
expense
Financial expense -1057897.78 -5557837.05
Including: Interest expense 887841.14
Interest income 670547.22
Add: Other income 79381.82 68844.09
Investment income (“-” for
777600.001806314.48
losses)
Including: Income from
investment in associates and joint
ventures (“-” for losses)
Income from the derecognition
of financial assets at amortized
cost (“-” for loss)
44ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024Net gain on exposure hedges (“-” for loss)
Gains from changes in fair value
9721583.193477115.56
(“-” for losses)
Credit impairment loss (“-” for
448326.78
loss)
Impairment losses (“-” for
losses)
Gains from assets disposal (“-”
223872.34
for losses)
2. Operating profit (“-” for loss) 4248645.04 25170714.11
Add: Non-operating income 0.09 4745.37
Less: Non-operating expense 30000.00 50894.08
3. Profit before income tax (“-” for
4218645.1325124565.40
losses)
Less: Income tax expense 66094.64 -869186.92
4. Net profit for the year (“-” for
4152550.4925993752.32
net losses)
4.1 Net profit from continuing
4152550.4925993752.32
operations (“-” for net loss)
4.2 Net profit from discontinued
operations (“-” for net losses)
5. Other comprehensive income
735928.78352055.06
net of tax
5.1 Other comprehensive
income
735928.78352055.06
Items that will not be reclassified
subsequently to profit or loss
5.1.1 Remeasurement of
defined benefit plan liability or
asset
5.1.2 Other comprehensive
income that cannot be transferred
to profit or loss under the equity
method
5.1.3 Changes in the fair
value of investments in other 735928.78 352055.06
equity instruments
5.1.4 Changes in the fair value
of the company’s credit risks
5.1.5 Other
5.2 Other comprehensive
income Items that may be
reclassified subsequently to profit
or loss
5.2.1 Other comprehensive
income can be transferred to profit
or loss under equity method
5.2.2 Changes in the fair value
of investments in other debt
obligations
45ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
5.2.3 Other comprehensive
income arising from the
reclassification of financial assets
5.2.4 Provision for credit
impairments in other debt
investment
5.2.5 Effective portion of
gains or losses arising from cash
flow hedging instruments
5.2.6 Translation differences
arising from translation of foreign
currency financial statements
5.2.7 Other
6. Total comprehensive income for
4888479.2726345807.38
the period
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
5. Consolidated Statement Of Cash Flows
Presented in RMB
6 months ended 30 June 6 months ended 30
Items
2024 June 2023
1. Cash flows from operating activities:
Proceeds from sales of goods 241759518.54 164207230.02
Net increase deposits from customers and placements
from corporations in the same industry
Net increase in loans from central bank
Net increase in loans from other financial institution
Cash premiums received on original insurance contracts
Net proceeds from reinsurance
Net increase in deposits and investment from insures
Interest handling charges and commissions received
Net increase in fund deposits
Net increase in proceeds from repurchase transactions
Net proceeds from acting trading of securities
Refund of taxes 2101600.10 1186861.59
Proceeds from other operating activities 49455585.99 74221616.32
Sub-total of cash inflows 293316704.63 239615707.93
Payment for goods and services 209737359.76 60457437.30
Net increase in loans and payments on behalf
Net increase in deposits in central bank and inter-bank
Payments of claims for original insurance contracts
Net increase in fund paid
Interest handling charges and Interest
Commissions on issuance policies paid
Payment to and for employees 36582617.63 36762506.08
Payments of various taxes 86650542.16 193176702.79
Payment for other operating activities 68795717.14 141360009.80
Sub-total of cash outflows 401766236.69 431756655.97
Net cash flows from operating activities -108449532.06 -192140948.04
46ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
2. Cash flows from investing activities:
Proceeds from disposal of investments
Investment returns received 777600.00 1644822.69
Net proceeds from disposal of fixed assets intangible
4269.60
assets and other long-term assets
Net proceeds from disposal of subsidiaries and other
business units
Proceeds from other investing activities 136800000.00
Sub-total of cash inflows 777600.00 138449092.29
Payment for acquisition of fixed assets intangible assets
41736.06251357.46
and other long-term assets
Payment for acquisition of investments
Net increase in pledged loans
Net payment for acquisition of subsidiaries and other
business units
Payment for other investing activities 40000000.00
Sub-total of cash outflows 40041736.06 251357.46
Net cash flows from investing activities -39264136.06 138197734.83
3. Cash flows from financing activities:
Proceeds from investors
Including: Proceeds from non-controlling shareholders of
subsidiaries
Proceeds from borrowings 101586610.82
Proceeds from other financing activities
Sub-total of cash inflows 101586610.82
Repayments of borrowings 100376586.60
Payment for dividends profit distributions or interest 3507919.09 63399744.75
Including: Dividends and profits paid to non-controlling
profits paid to non-controlling shareholders of subsidiaries
Payment for other financing activities
Sub-total of cash outflows 103884505.69 63399744.75
Net cash flows from financing activities -103884505.69 38186866.07
4. Effect of foreign exchange rate changes on cash and cash
2485.19172392.24
equivalents
5. Net increase in cash and cash equivalents -251595688.62 -15583954.90
Add: Cash and cash equivalents as at the year beginning 859146413.35 190365069.48
6. Cash and cash equivalent as at the year end 607550724.73 174781114.58
6. Cash Flow Statement of the Company as the Parent
Presented in RMB
6 months ended 30 June 6 months ended 30
Items
2024 June 2023
1. Cash flows from operating activities:
Proceeds from sales of goods 38235476.73 55240004.34
Refund of taxes 83084.73 1143272.60
Proceeds from other operating activities 44933222.51 40177648.86
Sub-total of cash inflows 83251783.97 96560925.80
Payment for goods and services 172735.64 2806232.29
Payment to and for employees 20556317.11 21711708.29
Payments of various taxes 14183984.15 132822106.11
Payment for other operating activities 17276926.85 51390420.56
Sub-total of cash outflows 52189963.75 208730467.25
Net cash flows from operating activities 31061820.22 -112169541.45
2. Cash flows from investing activities:
Proceeds from disposal of investments
Investment returns received 777600.00 6644822.69
47ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Net proceeds from disposal of fixed assets intangible
assets and other long-term assets
Net proceeds from disposal of subsidiaries and other
business units
Proceeds from other investing activities 136800000.00
Sub-total of cash inflows 777600.00 143444822.69
Payment for acquisition of fixed assets intangible
4699.00213690.10
assets and other long-term assets
Payment for acquisition of investments
Net payment for acquisition of subsidiaries and other
business units
Payment for other investing activities 40210000.00 14320000.00
Sub-total of cash outflows 40214699.00 14533690.10
Net cash flows from investing activities -39437099.00 128911132.59
3. Cash flows from financing activities:
Proceeds from investors
Proceeds from borrowings 62586610.82
Proceeds from other financing activities
Sub-total of cash inflows 62586610.82
Repayments of borrowings 62586.60
Payment for dividends profit distributions or interest 1137937.24 61711260.00
Payment for other financing activities
Sub-total of cash outflows 1200523.84 61711260.00
Net cash flows from financing activities -1200523.84 875350.82
4. Effect of foreign exchange rate changes on cash and cash
equivalents
5. Net increase in cash and cash equivalents -9575802.62 17616941.96
Add: Cash and cash equivalents as at the year
115075974.8590800999.60
beginning
6. Cash and cash equivalent as at the year end 105500172.23 108417941.56
7. Consolidated Statement Of Changes in Equity
Amount for the current period
Presented in RMB
6 months ended 30 June 2024
Attributable to shareholders’ equity of the parent company
Other equity Oth No
instruments er Ge
Les n-
co neri Ret
Cap s: Spe Sur con Tot
Items Sha mpr c ain
Pre Per ital trea cifi plu Sub trol al re ehe Ris ed Oth
cap fere pet
rese sur c s tota ling equ
Oth nsi k ear er
ital nce ual
rve y rese rese l inte ity
er ve Res nin
sha bon s sha rve rve restinc erv gs
res d res s om e
e
10143637
9782527585
11009176
I. Balance 24 319 25 060
660604082142
at the end 49 45 37 41
00384889
of last year 10. 9.4 29. 0.2
0.05.34.24.4
114262
0902
Add:
Changes of
48ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
accounting
policies
Correction
of prior
period
errors
Other
10143637
9782527585
II. Balance 11 00 91 76
2431925060
at the 660 604 082 142
49453741
Beginning 00 38 48 89
10.9.429.0.2
of the Year 0.0 5.3 4.2 4.4
114262
0902
III.Changes in - -
563627
equity 20 855
221559
during the 07 92
791522601year (“- 269 0.4.39.01.55“for .38 6decrease)
--
(I) Total 56 36 27
20855
comprehen 22 15 59
0792
sive 791 522 601
2690.4
income .39 .01 .55.386
(II)
Shareholde
r’s
contributio
ns and
decrease of
capital
1.Contribut
ion by
ordinary
shareholder
s
2. Holders
of other
equity
instruments
invested
capital
3. Equity
settled
share-
based
payments
4．Other
(III)
Appropriati
on of
profits
1.Appropri
ation for
49ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
surplus
reserves
2.Appropri
ation for
general
reserves
3.Distributi
on to
shareholder
s
4．Other
(IV)Transf
er within
equity
1.Share
capital
increased
by capital
reserves
transfer
2.Share
capital
increased
by surplus
reserves
transfer
3.Transfer
of surplus
reserve to
offset
losses
4.
Remeasure
ment of
defined
benefit
plan
liability
orasset
transfer to
retained
earnings
5. Other
comprehen
sive
income
carried
forward to
retained
earnings
6．Other
(V) Special
Reserve
1.Appropri
ation
during the
year
50ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
2.Utilizatio
n during
the year
(VI) Others
10143637
9782327584
IV. Balance 11 06 94 78
2431225204
at the end 660 227 698 902
49193748
of the 00 17 00 49
10.0.029.9.7
period 0.0 6.7 6.2 5.9
116266
0817
Amount for the prior period
Presented in RMB
6 months ended 30 June 2023
Attributable to shareholders’ equity of the parent company
Other equity Oth No
instruments er GeLes n-
co neri Ret
Cap s: Spe Sur con Tot
Items Sha mpr c ain
re Pre Per
ital trea cifi plu Sub trol al
ehe Ris ed Oth
fere pet rese sur c s tota ling equcap Oth nsi k ear er
nce ual rve y rese rese l inte ity ital er ve Res nin
sha bon s sha rve rve restinc erv gs
res d res s om e
e
10174042
97825275282
11130486
I. Balance 24 926 25 30
660155240541
at the end 49 72 37 12
00185477
of last year 10. 0.8 29. 29.
0.07.47.77.6
1152697
0807
Add:
Changes of
accounting
policies
Correction
of prior
period
errors
Other
10174042
97825275282
II. Balance 11 13 04 86
249262530
at the 660 155 240 541
49723712
Beginning 00 18 54 77
10.0.829.29.
of the Year 0.0 7.4 7.7 7.6
1152697
0807
III.---
Changes in - -
98100103
equity 17 24
8296005
during the 72 50
442127year (“- 722 558
2.864.23.“for .17 .98
19896
decrease)
(I) Total - - - - -
comprehen 17 37 38 24 41
51ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
sive 72 118 890 50 341
income 722 18 90 558 46.172.84.9.983.9
186
(II)
Shareholde
r’s
contributio
ns and
decrease of
capital
1.Contribut
ion by
ordinary
shareholder
s
2. Holders
of other
equity
instruments
invested
capital
3. Equity
settled
share-
based
payments
4．Other
---
(III) 61 61 61
Appropriati 711 711 711
on of 26 26 26
profits 0.0 0.0 0.0
000
1.Appropri
ation for
surplus
1.Appropri
ation for
general
reserves
---
3.Distributi 61 61 61
on to 711 711 711
shareholder 26 26 26
s 0.0 0.0 0.0
000
4．Other
(IV)Transf
er within
equity
1.Share
capital
increased
by capital
reserves
transfer
52ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
2..Share
capital
increased
by surplus
reserves
transfer
3.Transfer
of surplus
reserve to
offset
losses
4.
Remeasure
ment of
defined
benefit
plan
liability
orasset
transfer to
retained
earnings
5. Other
comprehen
sive
income
carried
forward to
retained
earnings
6．Other
(V) Special
Reserve
1.
Appropriati
on during
the year
2.Utilizatio
n during
the year
(VI) Others
10163941
97824275279
IV. Balance 11 14 03 83
241532585
at the end 660 325 638 489
49993706
of the 00 74 38 05
10.8.629.70.
period 0.0 4.6 2.7 3.7
1182699
0721
8. Consolidated Statement Of Changes in Equity Of The Parent Entity
Amount for the current period
Presented in RMB
6 months ended 30 June 2024
Items Share Other equity Capit Less: Other Speci Surpl Retai Total
capit instruments al treas comp fic us ned Other equit
al Prefe Perpe Other reser ury rehen reser reser earni y
53ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
rence tual ves share sive ve ve ngs
share bond s inco
s s me
101114013631
I. Balance 9647 1743 2521
660610849
at the end 1193 308. 2411
000.0305.6661.1
of last year 1.13 51 5.85
098
Add:
Changes of
accounting
policies
Correction
of prior
period
errors
Other
II. Balance 1011 1401 3631
964717432521
at the 660 610 849
1193308.2411
Beginning 000.0 305.6 661.1
1.13515.85
of the Year 0 9 8
III.Changes in
equity 4152 4888
7359
during the 550. 479.
28.78year (“- 49 27“fordecrease)
(I) Total
41524888
comprehen 7359
550.479.
sive 28.78
4927
income
(II)
Shareholde
r’s
contributio
ns and
decrease of
capital
1.Contribut
ion by
ordinary
shareholder
s
2. Holders
of other
equity
instruments
invested
capital
3. Equity
settled
share-
based
payments
4．Other
54ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
(III)
Appropriati
on of
profits
1.Appropri
ation for
surplus
2.Distributi
on to
shareholder
s
3．Other
(IV)Transf
er within
equity
1.Share
capital
increased
by capital
reserves
transfer
2..Share
capital
increased
by surplus
reserves
transfer
3.Transfer
of surplus
reserve to
offset
losses
4.
Remeasure
ment of
defined
benefit
plan
liability
orasset
transfer to
retained
earnings
5. Other
comprehen
sive
income
carried
forward to
retained
earnings
6．Other
(V) Special
Reserve
1.
Appropriati
55ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
on during
the year
2.Utilizatio
n during
the year
(VI) Others
IV. Balance 1011 1405 3636
964724792521
at the end 660 762 738
1193237.2411
of the 000.0 856.1 140.4
1.13295.85
period 0 8 5
Amount for the prior period
Presented in RMB
6 months ended 30 June 2023
Other equity Other
Less:
instruments Capit comp Speci Surpl Retai
Items Share treas Total Prefe Perpe al rehen fic us ned capit ury Other equit
rence tual reser sive reser reser earnial Other share y
share bond ves inco ve ve ngs s
s s me
101116923922
I. Balance 9647 1379 2521
660510386
at the end 1193 426. 2411
000.0832.8306.4
of last year 1.13 68 5.85
006
Add:
Changes of
accounting
policies
Correction
of prior
period
errors
Other
II. Balance 1011 1692 3922
964713792521
at the 660 510 386
1193426.2411
Beginning 000.0 832.8 306.4
1.13685.85
of the Year 0 0 6
III.Changes in
--
equity
352035713536
during the
55.0675075452year (“-.68.62“fordecrease)
(I) Total
25992634
comprehen 3520
37525807
sive 55.06.32.38
income
(II)
Shareholde
r’s
contributio
ns and
decrease of
56ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
capital
1.Contribut
ion by
ordinary
shareholder
s
2. Holders
of other
equity
instruments
invested
capital
3. Equity
settled
share-
based
payments
4．Other
(III) - -
Appropriati 6171 6171
on of 1260 1260
profits .00 .00
1.Appropri
ation for
surplus
2.Distributi - -
on to 6171 6171
shareholder 1260 1260
s .00 .00
3．Other
(IV)Transf
er within
equity
1.Share
capital
increased
by capital
reserves
transfer
2..Share
capital
increased
by surplus
reserves
transfer
3.Transfer
of surplus
reserve to
offset
losses
4.
Remeasure
ment of
defined
benefit
plan
57ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
liability
orasset
transfer to
retained
earnings
5. Other
comprehen
sive
income
carried
forward to
retained
earnings
6．Other
(V) Special
Reserve
1.
Appropriati
on during
the year
2.Utilizatio
n during
the year
(VI) Others
IV. Balance 1011 1656 3887
964717312521
at the end 660 793 020
1193481.2411
of the 000.0 325.1 853.8
1.13745.85
period 0 2 4
III. Company profile
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. (the “Company”) was established
under the approval of General Office of the Shenzhen Municipal People’s Government and was reorganized
into a limited liability company by shares on the basis of the former Shenzhen Special Economic Zone Real
Estate and Properties Corporation. The Company was registered at Shenzhen Administration for Industry and
Commerce in July 1993 and headquartered in Shenzhen City Guangdong Province. The Company currently
holds a business license with unified social credit code of 91440300192179585N with registered capital of
1011660000.00yuan total share of 1011660000 shares (each with par value of one yuan) of which
891660000 shares and 120000000 shares are unrestricted outstanding A shares and B shares respectively.
The Company’s shares were listed on the Shenzhen Stock Exchange respectively on September 15 1993 and
January 10 1994.Shenzhen Investment Holdings Co. Ltd. is a wholly state-owned limited liability company established on
October 13 2004 through the merger of its original major shareholder Shenzhen Construction InvestmentHoldings Co. Ltd. and two other municipal asset management companies according to the “Decision on theEstablishment of Shenzhen Investment Holdings Co. Ltd.” (Shen Guo Zi Wei [2004] No. 223) issued by State-
owned Assets Supervision and Management Commission of Shenzhen Municipal People’s Government. The
Company’s equity transfer thereof was approved by the document numbered Guo Zi Chan Quan [2005] 689
issued by State-owned Assets Supervision and Administration Commission of the State Council and the
corresponding obligation of tender offer was exempted under the approval of the document numbered Zhen Jian
Gong Si Zi [2005] 116 issued by China Securities Regulatory Commission and it was registered at China
Securities Depository and Clearing Co. Ltd. Shenzhen Branch on February 15 2006. As of the balance sheet
date Shenzhen Investment Holdings Co. Ltd. held 564353838 shares of the Company (accounting for 55.78%
of the total share capital of the Company) all of which were unrestricted shares.
58ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
The Company belongs to the real estate industry and is mainly engaged in real estate development and
commercial housing sales property leasing and management commodity retail and trade hotel business
equipment installation and maintenance construction interior decoration etc.The financial statements were approved and authorized for issue by the eleventh meeting of the eighth session
of the Board of Directors dated August 23 2024.IV. Preparation basis of the financial statements
1. Basis of preparation
The financial statements have been prepared on the basis of going concern.
2. Assessment of the ability to continue as a going concern
The Company has no events or conditions that may cast significant doubts upon the Company’s ability to
continue as a going concern within the 12 months after the balance sheet date.V. Significant accounting policies and estimates
Important notes for accounting policies and estimates:
The Company has set up accounting policies and estimates on transactions or events such as impairment of
financial instruments inventories depreciation of fixed assets construction in progress intangible assets
revenue recognition etc. based on the Company’s actual production and operation features.
1. Statement of compliance
The financial statements have been prepared in accordance with the requirements of China Accounting
Standards for Business Enterprises(CASBEs) and present truly and completely the financial position financial
performance and cash flows of the Company.
2. Accounting period
The accounting year of the Company runs from January 1 to December 31 under the Gregorian calendar.
3. Operating cycle
The Company has a relatively short operating cycle for its business an asset or a liability is classified as current
if it is expected to be realized or due within 12 months. The operating cycle for real estate industry starts from
the development of property and ends at sales which normally extends over 12 months and is subject to specific
projects therefore an asset or a liability is classified as current if it is expected to be realized or due within such
operating cycle.
4. Functional currency
The functional currency of the Company and its subsidiaries in Hong Kong SAR is Renminbi (RMB) Yuan
while the functional currency of subsidiary Great Wall Estate Company Inc. engaged in overseas operations is
the currency of the primary economic environment in which they operate. The currency used by the Company
in the preparation of the financial statements is RMB yuan.
5. Determination method and basis for selection of materiality
□Applicable □Inapplicable
Disclosed Items involving materiality Determination method and basis for selection of materiality
59ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
judgments
Significant accounts receivable with Accounts receivable with single amount in excess of 0.1% of total
provision for bad debts made on an assets are identified as significant accounts receivable with provision
individual basis made on an individual basis.Significant provisions for bad debts of Provisions for bad debts of accounts receivable reversed with single
accounts receivable collected or amount in excess of 0.1% of total assets are identified as significant
reversed provisions for bad debts of accounts receivable collected or reversed.Significant other receivables with Other receivables with single amount in excess of 0.1% of total assets
provision for bad debts made on an are identified as significant other receivables with provision made on
individual basis an individual basis.Accounts payable with age over one year with single amount in
Significant accounts payable with age
excess of 0.1% of total assets are identified as significant accounts
over one year
payable with age over one year.Other payables with age over one year with single amount in excess
Significant other payables with age
of 0.1% of total assets are identified as significant other payables with
over one year
age over one year.Cash flows from investing activities with single amount in excess of
Significant cash flows from investing
0.1% of total assets are identified as significant cash flows from
activities
investing activities.Subsidiaries with total assets/total revenue/profit before tax in excess
Significant subsidiaries not wholly- of 0.1% of the group’s total assets/total revenue/profit before tax are
owned subsidiaries identified as significant subsidiaries/significant not wholly-owned
subsidiaries.Contingencies with single amount in excess of 0.1% of total assets are
Significant contingencies
identified as significant contingencies.Events subsequent to the balance sheet date with single amount in
Significant events subsequent to the
excess of 0.1% of total assets are identified as significant events
balance sheet date
subsequent to the balance sheet date.
6. Accounting treatments of business combination under and not under common control
(1) Accounting treatment of business combination under common control
Assets and liabilities arising from business combination are measured at carrying amount of the combined party
included in the consolidated financial statements of the ultimate controlling party at the combination date.Difference between carrying amount of the equity of the combined party included in the consolidated financial
statements of the ultimate controlling party and that of the combination consideration or total par value of
shares issued is adjusted to capital reserve if the balance of capital reserve is insufficient to offset any excess is
adjusted to retained earnings.
(2) Accounting treatment of business combination not under common control
When combination cost is in excess of the fair value of identifiable net assets obtained from the acquiree at the
acquisition date the excess is recognized as goodwill; otherwise the fair value of identifiable assets liabilities
and contingent liabilities and the measurement of the combination cost are reviewed then the difference is
recognized in profit or loss.
7. Judgement criteria for control and compilation method of consolidated financial statements
(1) Judgement of control
An investor controls an investee if and only if the investor has all the following: (1) power over the investee; (2)
exposure or rights to variable returns from its involvement with the investee; and (3) the ability to use its
power over the investee to affect the amount of the investor’s returns.
(2) Compilation method of consolidated financial statements
60ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
The parent company brings all its controlled subsidiaries into the consolidation scope. The consolidatedfinancial statements are compiled by the parent company according to“CASBE 33-Consolidated FinancialStatements” based on relevant information and the financial statements of the parent company and its
subsidiaries.
8. Classification of joint arrangements and accounting treatment of joint operations
(1) Joint arrangements include joint operations and joint ventures.
(2) When the Company is a joint operator of a joint operation it recognizes the following Items in relation to its
interest in a joint operation:
A. its assets including its share of any assets held jointly;
B. its liabilities including its share of any liabilities incurred jointly;
C. its revenue from the sale of its share of the output arising from the joint operation;
D. its share of the revenue from the sale of the assets by the joint operation; and
E. its expenses including its share of any expenses incurred jointly.
9. Recognition criteria of cash and cash equivalents
Cash as presented in cash flow statement refers to cash on hand and deposit on demand for payment. Cash
equivalents refer to short-term highly liquid investments that can be readily converted to cash and that are
subject to an insignificant risk of changes in value.
10. Foreign currency translation
(1) Translation of transactions denominated in foreign currency
Transactions denominated in foreign currency are translated into RMB yuan at the spot exchange rate at the
transaction date at initial recognition. At the balance sheet date monetary Items denominated in foreign
currency are translated at the spot exchange rate at the balance sheet date with difference except for those
arising from the principal and interest of exclusive borrowings eligible for capitalization included in profit or
loss; non-cash Items carried at historical costs are translated at the spot exchange rate at the transaction date
with the RMB amounts unchanged; non-cash Items carried at fair value in foreign currency are translated at the
spot exchange rate at the date when the fair value was determined with difference included in profit or loss or
other comprehensive income.
(2) Translation of financial statements measured in foreign currency
The assets and liabilities in the balance sheet are translated into RMB at the spot exchange rate at the balance
sheet date; the equity Items other than undistributed profit are translated at the spot exchange rate at the
transaction date; the revenues and expenses in the income statement are translated into RMB at the approximate
exchange rate similar to the spot exchange rate at the transaction date. The difference arising from the
aforementioned foreign currency translation is included in other comprehensive income.
11. Financial instruments
(1) Classification of financial assets and financial liabilities
61ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Financial assets are classified into the following three categories when initially recognized: a. financial assets at
amortized cost; b. financial assets at fair value through other comprehensive income; c. financial assets at fair
value through profit or loss.Financial liabilities are classified into the following four categories when initially recognized: a. financial
liabilities at fair value through profit or loss; b. financial liabilities that arise when a transfer of a financial asset
does not qualify for derecognition or when the continuing involvement approach applies; c. financial guarantee
contracts not fall within the above categories a. and b. and commitments to provide a loan at a below-market
interest rate which do not fall within the above category a. ; d. financial liabilities at amortized cost.
(2) Recognition criteria measurement method and derecognition of financial assets and financial liabilities
1) Recognition criteria and measurement method of financial assets and financial liabilities
When the Company becomes a party to a financial instrument it is recognized as a financial asset or financial
liability. The financial assets and financial liabilities initially recognized by the Company are measured at fair
value; for the financial assets and liabilities at fair value through profit or loss the transaction expenses thereof
are directly included in profit or loss; for other categories of financial assets and financial liabilities the
transaction expenses thereof are included into the initially recognized amount. However at initial recognition
for accounts receivable that do not contain a significant financing component or in circumstances where the
Company does not consider the financing components in contracts within one year they are measured at the
transaction price in accordance with “CASBE 14 – Revenues”.
2) Subsequent measurement of financial assets
Financial assets measured at amortized cost
The Company measures its financial assets at the amortized costs using effective interest method. Gains or
losses on financial assets that are measured at amortized cost and are not part of hedging relationships shall be
included into profit or loss when the financial assets are derecognized reclassified amortized using effective
interest method or recognized with impairment loss.Debt instrument investments at fair value through other comprehensive income
The Company measures its debt instrument investments at fair value. Interests impairment gains or losses and
gains and losses on foreign exchange that calculated using effective interest method shall be included into profit
or loss while other gains or losses are included into other comprehensive income. Accumulated gains or losses
that initially recognized as other comprehensive income should be transferred out into profit or loss when the
financial assets are derecognized.Equity instrument investments at fair value through other comprehensive income
The Company measures its equity instrument investments at fair value. Dividends obtained (other than those as
part of investment cost recovery) shall be included into profit or loss while other gains or losses are included
into other comprehensive income. Accumulated gains or losses that initially recognized as other comprehensive
income should be transferred out into retained earnings when the financial assets are derecognized.Financial assets at fair value through profit or loss
The Company measures its financial assets at fair value. Gains or losses arising from changes in fair value
(including interests and dividends) shall be included into profit or loss except for financial assets that are part
of hedging relationships.
(3) Subsequent measurement of financial liabilities
62ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
1) Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include held-for-trading financial liabilities (including
derivatives that are liabilities) and financial liabilities designated as at fair value through profit or loss. The
Company measures such kind of liabilities at fair value. The amount of changes in the fair value of the financial
liabilities that are attributable to changes in the Company’s own credit risk shall be included into other
comprehensive income unless such treatment would create or enlarge accounting mismatches in profit or loss.Other gains or losses on those financial liabilities (including interests changes in fair value that are attributable
to reasons other than changes in the Company’s own credit risk) shall be included into profit or loss except for
financial liabilities that are part of hedging relationships. Accumulated gains or losses that originally recognized
as other comprehensive income should be transferred out into retained earnings when the financial liabilities are
derecognized.
2) b. Financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition
or when the continuing involvement approach applies
The Company measures its financial liabilities in accordance with “CASBE 23 – Transfer of Financial Assets”.
3) Financial guarantee contracts not fall within the above categories 1) and 2) and commitments to
provide a loan at a below-market interest rate which do not fall within the above category 1)
The Company measures its financial liabilities at the higher of: a. the amount of loss allowances in accordance
with impairment requirements of financial instruments; b. the amount initially recognized less the amount of
accumulated amortization recognized in accordance with “CASBE 14 – Revenues”.
4) Financial liabilities at amortized cost
The Company measures its financial liabilities at amortized cost using effective interest method. Gains or losses
on financial liabilities that are measured at amortized cost and are not part of hedging relationships shall be
included into profit or loss when the financial liabilities are derecognized and amortized using effective interest
method.
5) Derecognition of financial assets and financial liabilities
Financial assets are derecognized when:
* The contractual rights to the cash flows from the financial assets expire; or
* The financial assets have been transferred and the transfer qualifies for derecognition in accordance
with “CASBE 23 – Transfer of Financial Assets”.Only when the underlying present obligations of a financial liability are relieved totally or partly may the financial
liability be derecognized accordingly.
(4) Recognition criteria and measurement method of financial assets transfer
Where the Company has transferred substantially all of the risks and rewards related to the ownership of the
financial asset it derecognizes the financial asset and any right or liability arising from such transfer is
recognized independently as an asset or a liability. If it retained substantially all of the risks and rewards related
to the ownership of the financial asset it continues recognizing the financial asset. Where the Company does
not transfer or retain substantially all of the risks and rewards related to the ownership of a financial asset it is
dealt with according to the circumstances as follows respectively: A. if the Company does not retain its control
over the financial asset it derecognizes the financial asset and any right or liability arising from such transfer is
63ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
recognized independently as an asset or a liability; B. if the Company retains its control over the financial asset
according to the extent of its continuing involvement in the transferred financial asset it recognizes the related
financial asset and recognizes the relevant liability accordingly.If the transfer of an entire financial asset satisfies the conditions for derecognition the difference between the
amounts of the following two items is included in profit or loss: A. the carrying amount of the transferred
financial asset as of the date of derecognition; B. the sum of consideration received from the transfer of the
financial asset and the accumulative amount of the changes of the fair value originally included in other
comprehensive income proportionate to the transferred financial asset (financial assets transferred refer to debt
instrument investments at fair value through other comprehensive income). If the transfer of financial asset
partially satisfies the conditions for derecognition the entire carrying amount of the transferred financial asset is
between the portion which is derecognized and the portion which is not apportioned according to their
respective relative fair value and the difference between the amounts of the following two items is included
into profit or loss: A. the carrying amount of the portion which is derecognized; B. the sum of consideration of
the portion which is derecognized and the portion of the accumulative amount of the changes in the fair value
originally included in other comprehensive income which is corresponding to the portion which is derecognized
(financial assets transferred refer to debt instrument investments at fair value through other comprehensive
income).
(5) Fair value determination method of financial assets and liabilities
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data
and information are available to measure fair value. The inputs to valuation techniques used to measure fair
value are arranged in the following hierarchy and used accordingly:
A. Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the
Company can access at the measurement date;
B. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or
liability either directly or indirectly. Level 2 inputs include: quoted prices for similar assets or liabilities in
active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs
other than quoted prices that are observable for the asset or liability for example interest rates and yield curves
observable at commonly quoted intervals; market-corroborated inputs;
C. Level 3 inputs are unobservable inputs for the asset or liability. Level 3 inputs include interest rate that is not
observable and cannot be corroborated by observable market data at commonly quoted intervals historical
volatility future cash flows to be paid to fulfill the disposal obligation assumed in business combination
financial forecast developed using the Company’s own data etc.
(6) Impairment of financial instruments
The Company on the basis of expected credit loss recognizes loss allowances of financial assets at amortized
cost debt instrument investments at fair value through other comprehensive income contract assets leases
receivable loan commitments other than financial liabilities at fair value through profit or loss financial
guarantee contracts not belong to financial liabilities at fair value through profit or loss or financial liabilities
that arise when a transfer of a financial asset does not qualify for derecognition or when the continuing
involvement approach applies.Expected credit losses refer to the weighted average of credit losses with the respective risks of a default
occurring as the weights. Credit loss refers to the difference between all contractual cash flows that are due to
the Company in accordance with the contract and all the cash flows that the Company expects to receive (i.e.all cash shortfalls) discounted at the original effective interest rate. Among which purchased or originated
credit-impaired financial assets are discounted at the credit-adjusted effective interest rate.
64ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
At the balance sheet date the Company shall only recognize the cumulative changes in the lifetime expected
credit losses since initial recognition as a loss allowance for purchased or originated credit-impaired financial
assets.For leases receivable and accounts receivable and contract assets resulting from transactions regulated in
“CASBE 14 – Revenues” the Company chooses simplified approach to measure the loss allowance at an
amount equal to lifetime expected credit losses.For financial assets other than the above on each balance sheet date the Company shall assess whether the
credit risk on the financial instrument has increased significantly since initial recognition. The Company shall
measure the loss allowance for the financial instrument at an amount equal to the lifetime expected credit losses
if the credit risk on that financial instrument has increased significantly since initial recognition; otherwise the
Company shall measure the loss allowance for that financial instrument at an amount equal to 12-month
expected credit loss.Considering reasonable and supportable forward-looking information the Company compares the risk of a
default occurring on the financial instrument as at the balance sheet date with the risk of a default occurring on
the financial instrument as at the date of initial recognition so as to assess whether the credit risk on the
financial instrument has increased significantly since initial recognition.The Company may assume that the credit risk on a financial instrument has not increased significantly since
initial recognition if the financial instrument is determined to have relatively low credit risk at the balance sheet
date.The Company shall estimate expected credit risk and measure expected credit losses on an individual or a
collective basis. When the Company adopts the collective basis financial instruments are grouped with similar
credit risk features.The Company shall remeasure expected credit loss on each balance sheet date and increased or reversed
amounts of loss allowance arising therefrom shall be included into profit or loss as impairment losses or gains.For a financial asset measured at amortized cost the loss allowance reduces the carrying amount of such
financial asset presented in the balance sheet; for a debt investment measured at fair value through other
comprehensive income the loss allowance shall be recognized in other comprehensive income and shall not
reduce the carrying amount of such financial asset.
(7) Offsetting financial assets and financial liabilities
Financial assets and financial liabilities are presented separately in the balance sheet and are not offset.However the Company offsets a financial asset and a financial liability and presents the net amount in the
balance sheet when and only when the Company: A. currently has a legally enforceable right to set off the
recognized amounts; and B. intends either to settle on a net basis or to realize the asset and settle the liability
simultaneously.For a transfer of a financial asset that does not qualify for derecognition the Company does not offset the
transferred asset and the associated liability.
12. Recognition criteria and accrual method for expected credit losses of receivables and contract assets
(1) Receivables and contract assets with expected credit losses measured on a collective basis using similar
credit risk features
Basis for
Categories determination of Method for measuring expected credit loss
portfolio
Bank acceptance receivable Type of notes Based on historical credit loss experience the current
65ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
situation and the forecast of future economic
conditions the Company calculates expected credit loss
Trade acceptance receivable
through exposure at default and lifetime expected credit
loss rate.Accounts receivable – Portfolio
grouped with balances due from Nature of
related parties within the receivables
consolidation scope Based on historical credit loss experience the current
Accounts receivable – Portfolio situation and the forecast of future economic conditions
Nature of
grouped with property sales the Company calculates expected credit loss through
receivables
receivable exposure at default and lifetime expected credit loss rate.Accounts receivable – Portfolio
Nature of
grouped with balances due from
receivables
other customers
Other receivables – Portfolio
Nature of
grouped with government funds
receivables
receivable
Other receivables – Portfolio
Nature of
grouped with employee petty
receivables
cash receivable Based on historical credit loss experience the current
Other receivables – Portfolio situation and the forecast of future economic conditions
Nature of
grouped with advances received the Company calculates expected credit loss through
receivables
and paid on behalf of others exposure at default and 12-month or lifetime expected
Other receivables – Portfolio credit loss rate.Nature of
grouped with other inter-
receivables
company balances receivable
Other receivables – Portfolio
Nature of
grouped with balances due from
receivables
related parties receivable
Contract assets – Portfolio Nature of
Based on historical credit loss experience the current
grouped with product sales receivables
situation and the forecast of future economic conditions
Contract assets – Portfolio
Nature of the Company calculates expected credit loss through
grouped with engineering
receivables exposure at default and lifetime expected credit loss rate.construction
(2) Recognition criteria for receivables and contract assets with expected credit losses measured on an
individual basis
For receivables and contract assets whose credit risk is significantly different from that of portfolios the
Company accrues expected credit losses on an individual basis.
13. Inventories
(1) Classification of inventories
Inventories include development land held for sale or consumption during development and operations
developed products developed products held for sale but temporarily leased out etc. as well as development
cost during development.
(2) Accounting method for dispatched inventories
Materials and equipment dispatched from storage are accounted for with specific identification method.During project development the development cost of land is calculated and allocated based on the area
occupied by the developed products and the grade coefficient of occupied land.
66ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Developed products dispatched from storage are accounted for with cost coefficient allocation method.Developed products held for sale but temporarily leased out and revolving houses are evenly amortized based
on the estimated useful life of similar fixed assets of the Company.If the public supporting facilities are completed earlier than the relevant developed products the development
cost is calculated and allocated based on the construction area of the relevant development projects after the
completion settlement of the public supporting facilities; if the public supporting facilities are completed later
than the relevant developed products the public supporting facility fees shall be accrued and after the
completion settlement of the public supporting facilities the relevant development product costs shall be
adjusted based on the difference between the actual cost incurred and cost accrued.
(3) Inventory system
Physical inventory counting method is adopted.
(4) Amortization method of low-value consumables and packages
A. Low-value consumables
Low-value consumables are amortized with usage times.B. Packages
Packages are amortized with usage times.
(5) Provision for inventory write-down
At the balance sheet date inventories are measured at the lower of cost and net realizable value; provisions for
inventory write-down are made on the excess of its cost over the net realizable value. The net realizable value of
inventories held for sale is determined based on the amount of the estimated selling price less the estimated
selling expenses and relevant taxes and surcharges in the ordinary course of business; the net realizable value of
inventories to be processed is determined based on the amount of the estimated selling price less the estimated
costs of completion selling expenses and relevant taxes and surcharges in the ordinary course of business; at the
balance sheet date when only part of the same item of inventories have agreed price their net realizable value
are determined separately and are compared with their costs to set the provision for inventory write-down to be
made or reversed.
14. Long-term equity investments
(1) Judgment of joint control and significant influence
Joint control is the contractually agreed sharing of control of an arrangement which exists only when decisions
about the relevant activities require the unanimous consent of the parties sharing control. Significant influence
is the power to participate in the financial and operating policy decisions of the investee but is not control or
joint control of these policies.
(2) Determination of investment cost
1) For business combination under common control if the consideration of the combining party is that it makes
payment in cash transfers non-cash assets assumes its liabilities or issues equity securities on the date of
combination it regards the share of the carrying amount of the equity of the combined party included in the
consolidated financial statements of the ultimate controlling party as the initial cost of the investment. The
difference between the initial cost of the long-term equity investments and the carrying amount of the
67ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
combination consideration paid or the par value of shares issued offsets capital reserve; if the balance of capital
reserve is insufficient to offset any excess is adjusted to retained earnings.When long-term equity investments are obtained through business combination under common control achieved
in stages the Company determines whether it is a “bundled transaction”. If it is a “bundled transaction” stages
as a whole are considered as one transaction in accounting treatment. If it is not a “bundled transaction” on the
date of combination investment cost is initially recognized at the share of the carrying amount of net assets of
the combined party included the consolidated financial statements of the ultimate controlling party. The
difference between the initial investment cost of long-term equity investments at the acquisition date and the
carrying amount of the previously held long-term equity investments plus the carrying amount of the
consideration paid for the newly acquired equity is adjusted to capital reserve; if the balance of capital reserve is
insufficient to offset any excess is adjusted to retained earnings.For business combination not under common control investment cost is initially recognized at the acquisition-
date fair value of considerations paid.When long-term equity investments are obtained through business combination not under common control
achieved in stages the Company determined whether they are stand-alone financial statements or consolidated
financial statements in accounting treatment:
A. In the case of stand-alone financial statements investment cost is initially recognized at the carrying amount
of the previously held long-term equity investments plus the carrying amount of the consideration paid for the
newly acquired equity.B. In the case of consolidated financial statements the Company determines whether it is a “bundledtransaction”. If it is a “bundled transaction” stages as a whole are considered as one transaction in accounting
treatment. If it is not a “bundled transaction” the carrying amount of the acquire previously held equity interest
in the acquiree is remeasured at the acquisition-date fair value and the difference between the fair value and the
carrying amount is recognized in investment income; when the acquire's previously held equity interest in the
acquiree involves other comprehensive income under equity method the related other comprehensive income is
reclassified as income for the acquisition period excluding other comprehensive income arising from changes
in net liabilities or assets from remeasurement of defined benefit plan of the acquiree.
3) Long-term equity investments obtained through ways other than business combination: the initial cost of a
long-term equity investment obtained by making payment in cash is the purchase cost which is actually paid;
that obtained on the basis of issuing equity securities is the fair value of the equity securities issued; that
obtained through debt restructuring is determined according to “CASBE 12 – Debt Restructuring”; and thatobtained through non-cash assets exchange is determined according to “CASBE 7 – Non-cash AssetsExchange”.
(3) Subsequent measurement and recognition method of profit or loss
For a long-term equity investment with control relationship it is accounted for with cost method; for a long-
term equity investment with joint control or significant influence relationship it is accounted for with equity
method.
(4) Disposal of a subsidiary in stages resulting in the Company’s loss of control
1) Judgement principles of “bundled transaction”
For disposal of a subsidiary in stages resulting in the Company’s loss of control the Company determines
whether it is a “bundled transaction” based on the agreement terms for each stage disposal consideration
obtained separately object of the equity sold disposal method disposal time point etc. If the terms conditions
and economic effect of each transaction meet one or more of the following conditions these transactions are
usually considered as a “bundled transaction”:
68ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
A. these transactions are entered into at the same time or in contemplation of each other;
B. these transactions form a single transaction designed to achieve an overall commercial effect;
C. the occurrence of one transaction is dependent on the occurrence of at least one other transaction; and
D. one transaction considered on its own is not economically justified but it is economically justified when
considered together with other transactions.
2) Accounting treatments of non-bundled transactions
A. Stand-alone financial statements
The difference between the carrying amount of the disposed equity and the consideration obtained thereof is
recognized in profit or loss. If the disposal does not result in the Company’s loss of significant influence or joint
control the remained equity is accounted for with equity method; however if the disposal results in the
Company’s loss of control joint control or significant influence the remained equity is accounted for according
to “CASBE 22 – Financial Instruments: Recognition and Measurement”.B. Consolidated financial statements
Stages as a whole are considered as one transaction resulting in loss of control in accounting treatment.However before the Company loses control over a subsidiary the difference between the disposal consideration
at each stage and the proportionate share of net assets in the disposed subsidiary is recognized as other
comprehensive income at the consolidated financial statements and reclassified as profit or loss in the period
when the Company loses control over such subsidiary.
15. Investment property
An enterprise's investment property comprises leased land use rights land use rights held for transfer with the
intention of appreciating in value and leased buildings.Investment properties are initially measured at acquisition cost and depreciated or amortized using the same
policy as that for fixed assets or intangible assets.
16.Fixed assets
(1) Recognition of fixed assets
Fixed assets represent the tangible assets held by the Group for use in production of goods use in supply of
services rental or for administrative purposes with useful lives over one accounting year. Fixed assets are only
recognized when its related economic benefits are likely to flow to the Group and its cost can be reliably
measured.
(2) Depreciation of fixed assets
Depreciation Estimated useful Residual value Depreciation
Class
Method life (years) rate % rate %
straight-line
Plant and buildings 30 5.00 3.17
depreciation
straight-line
Motor vehicles 6 5 15.83
depreciation
Electronic straight-line 5 5 19
69ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
equipment and depreciation
others
17. Construction in progress
Construction in progress is recognized if and only if it is probable that future economic benefits associated
with the item will flow to the Company and the cost of the item can be measured reliably. Construction in
progress is measured at the actual cost incurred to reach its designed usable conditions.Construction in progress is transferred into fixed assets at its actual cost when it reaches the designed usable
conditions. When the auditing of the construction in progress is not finished while reaching the designed usable
conditions it is transferred to fixed assets using estimated value first and then adjusted accordingly when the
actual cost is settled but the accumulated depreciation is not to be adjusted retrospectively.
18. Borrowing costs
(1) Capitalization criteria
Where the borrowing costs incurred to the Company can be directly attributable to the acquisition and
construction or production of assets eligible for capitalization it is capitalized and included in the costs of
relevant assets; other borrowing costs are recognized as expenses on the basis of the actual amount incurred
and are included in profit or loss.
(2) Borrowing costs capitalization period
A. The borrowing costs are not capitalized unless the following requirements are all met: 1) the asset
disbursements have already incurred; 2) the borrowing costs have already incurred; and 3) the acquisition and
construction or production activities which are necessary to prepare the asset for its intended use or sale have
already started.B. Suspension of capitalization: where the acquisition and construction or production of a qualified asset is
interrupted abnormally and the interruption period lasts for more than 3 months the capitalization of the
borrowing costs is suspended; the borrowing costs incurred during such period are recognized as expenses and
are included in profit or loss till the acquisition and construction or production of the asset restarts.C. Ceasing of capitalization: when the qualified asset under acquisition and construction or production is ready
for the intended use or sale the capitalization of the borrowing costs is ceased.
(3) Capitalization rate of borrowing costs and calculation basis of capitalized amount
For borrowings exclusively for the acquisition and construction or production of assets eligible for
capitalization the to-be-capitalized amount of interests is determined in light of the actual interest expenses
incurred (including amortization of premium or discount based on effective interest method) of the special
borrowings in the current period less the interest income on the unused borrowings as a deposit in the bank or as
a temporary investment; where a general borrowing is used for the acquisition and construction or production of
assets eligible for capitalization the Company calculates and determines the to-be-capitalized amount of
interests on the general borrowing by multiplying the weighted average asset disbursement of the excess of the
accumulative capital disbursements over the special borrowings by the capitalization rate of the general
borrowing used.
19. Intangible assets
Useful lives of intangible assets and the basis for determining them their estimates amortization methods or
review procedures
70ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
1) Intangible assets include software etc. The initial measurement of intangible assets is based on its cost.
2) For intangible assets with finite useful lives their amortization amounts are amortized within their useful
lives systematically and reasonably if it is unable to determine the expected realization pattern reliably
intangible assets are amortized by the straight-line method with details as follows:
Items Useful life and determination basis Amortization method
Expected realization method of economic
Software Straight-line method
benefits related to intangible assets 3-5 years
3) Expenditures on the research phase of an internal project are recognized as profit or loss when they are
incurred. An intangible asset arising from the development phase of an internal project is recognized if the
Company can demonstrate all of the followings: A. the technical feasibility of completing the intangible asset so
that it will be available for use or sale; B. its intention to complete the intangible asset and use or sell it;C. how
the intangible asset will generate probable future economic benefits among other things the Company can
demonstrate the existence of a market for the output of the intangible asset or the intangible asset itself or if it is
to be used internally the usefulness of the intangible asset; D.the availability of adequate technical financial
and other resources to complete the development and to use or sell the intangible asset; and E. its ability to
measure reliably the expenditure attributable to the intangible asset during its development.
20. Impairment of long-term assets
For long-term assets such as long-term equity investments investment property at cost model fixed assets
construction in progress right-of-use assets intangible assets with finite useful lives etc. if at the balance sheet
date there is indication of impairment the recoverable amount is to be estimated. For goodwill recognized in
business combination and intangible assets with indefinite useful lives no matter whether there is indication of
impairment impairment test is performed annually. Impairment test on goodwill is performed on related asset
group or asset group portfolio.When the recoverable amount of such long-term assets is lower than their carrying amount the difference is
recognized as provision for assets impairment through profit or loss.
21. Long-term deferred expenses
Long-term prepayments are expenses that have been recognized but with amortization period over one year
(excluding one year). They are recorded with actual cost and evenly amortized within the beneficiary period or
stipulated period. If items of long-term prepayments fail to be beneficial to the following accounting periods
residual values of such items are included in profit or loss.
22. Employee benefits
(1) Accounting for short-term remuneration
The Company recognizes in the accounting period in which an employee provides service short-term employee
benefits actually incurred as liabilities with a corresponding charge to profit or loss or the cost of a relevant asset.
(2) Accounting for post-employment benefits
The Company classifies post-employment benefit plans as either defined contribution plans or defined benefit
plans.
1) The Company recognizes in the accounting period in which an employee provides service the contribution
payable to a defined contribution plan as a liability with a corresponding charge to profit or loss or the cost of a
relevant asset.
71ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
2) Accounting treatment by the Company for defined benefit plan usually involves the following steps:
A. In accordance with the projected unit credit method using unbiased and mutually compatible actuarial
assumptions to estimate related demographic variables and financial variables measure the obligations under
the defined benefit plan and determine the periods to which the obligations are attributed. Meanwhile the
Company discounts obligations under the defined benefit plan to determine the present value of the defined
benefit plan obligations and the current service cost;
B. When a defined benefit plan has assets the Company recognizes the deficit or surplus by deducting the fair
value of defined benefit plan assets from the present value of the defined benefit plan obligation as a net defined
benefit plan liability or net defined benefit plan asset. When a defined benefit plan has a surplus the Company
measures the net defined benefit plan asset at the lower of the surplus in the defined benefit plan and the asset
ceiling;
C. At the end of the period the Company recognizes the following components of employee benefits cost
arising from defined benefit plan: a. service cost; b. net interest on the net defined benefit plan liability (asset);
and c. changes as a result of remeasurement of the net defined benefit liability (asset). Item a and item b are
recognized in profit or loss or the cost of a relevant asset. Item c is recognized in other comprehensive income
and is not to be reclassified subsequently to profit or loss. However the Company may transfer those amounts
recognized in other comprehensive income within equity.
(3) Accounting for termination benefits
Termination benefits provided to employees are recognized as an employee benefit liability for termination
benefits with a corresponding charge to profit or loss at the earlier of the following dates: (1) when the
Company cannot unilaterally withdraw the offer of termination benefits because of an employment termination
plan or a curtailment proposal; or (2) when the Company recognizes cost or expenses related to a restructuring
that involves the payment of termination benefits.
(4) Accounting for other long-term employee benefits
When other long-term employee benefits provided to the employees satisfied the conditions for classifying as a
defined contribution plan those benefits are accounted for in accordance with the requirements relating to
defined contribution plan while other benefits are accounted for in accordance with the requirements relating to
defined benefit plan. In order to simplify the related accounting treatment the net total of the constituent items
of employee compensation costs incurred that are recognized as service costs net interest on net liabilities or
net assets for other long-term employee benefits and changes arising from the remeasurement of net liabilities
or net assets for other long-term employee benefits are included in the profit or loss for the period or in the cost
of the related assets.Accounting method for maintenance funds
Pursuant to the relevant regulations of the place in which the development project located the maintenance
funds shall be collected from the buyer or included into the development costs of relevant developed products
by the Company during the sales (pre-sale) of developed products and shall be uniformly handed over to the
maintenance funds management department.Accounting method for quality guarantee deposits
The quality guarantee deposits shall be reserved from the engineering funds of construction unit in accordance
with the provisions of the construction contract. The maintenance costs incurred during the warranty period of
the developed products shall be offset against the quality guarantee deposits; at the expiration of the agreed
warranty period for developed products the balance of the quality guarantee deposits shall be refunded to the
construction unit.
72ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
23. Revenue
Disclosure of accounting policies used for revenue recognition and measurement by type of business
(1) Revenue recognition principles
At contract inception the Company shall assess the contracts and shall identify each performance obligation in
the contracts and determine whether the performance obligation should be satisfied over time or at a point in
time.The Company satisfies a performance obligation over time if one of the following criteria is met otherwise the
performance obligation is satisfied at a point in time: A.the customer simultaneously receives and consumes the
economic benefits provided by the Company’s performance as the Company performs; B. the customer can
control goods as they are created by the Company’s performance; C.goods created during the Company’s
performance have irreplaceable uses and the Company has an enforceable right to the payments for
performance completed to date during the whole contract period.For each performance obligation satisfied over time the Company shall recognize revenue over time by
measuring the progress towards complete satisfaction of that performance obligation. In the circumstance that
the progress cannot be measured reasonably but the costs incurred in satisfying the performance obligation are
expected to be recovered the Company shall recognize revenue only to the extent of the costs incurred until it
can reasonably measure the progress. For each performance obligation satisfied at a point in time the Company
shall recognize revenue at the time point that the customer obtains control of relevant goods or services. To
determine whether the customer has obtained control of goods the Company shall consider the following
indications: A.the Company has a present right to payments for the goods i.e. the customer is presently obliged
to pay for the goods; B.the Company has transferred the legal title of the goods to the customer i.e. the
customer has legal title to the goods; C.the Company has transferred physical possession of the goods to the
customer i.e. the customer has physically possessed the goods; D.the Company has transferred significant risks
and rewards of ownership of the goods to the customer i.e. the customer has obtained significant risks and
rewards of ownership of the goods; E. the customer has accepted the goods; F. other evidence indicating the
customer has obtained control over the goods.
(2) Revenue measurement principle
1) Revenue is measured at the amount of the transaction price that is allocated to each performance obligation.
The transaction price is the amount of consideration to which the Company expects to be entitled in exchange
for transferring goods or services to a customer excluding amounts collected on behalf of third parties and those
expected to be refunded to the customer.
2) If the consideration promised in a contract includes a variable amount the Company shall confirm the best
estimate of variable consideration at expected value or the most likely amount. However the transaction price
that includes the amount of variable consideration only to the extent that it is high probable that a significant
reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with
the variable consideration is subsequently resolved.
3) In the circumstance that the contract contains a significant financing component the Company shall
determine the transaction price based on the price that a customer would have paid for if the customer had paid
cash for obtaining control over those goods or services. The difference between the transaction price and the
amount of promised consideration is amortized under effective interest method over contractual period.
4) For contracts containing two or more performance obligations the Company shall determine the stand-alone
selling price at contract inception of the distinct good underlying each performance obligation and allocate the
transaction price to each performance obligation on a relative stand-alone selling price basis.
73ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
(3) Revenue recognition method
1) Sales of real estate development
Real estate sales business is a performance obligation satisfied at a point in time and revenue is recognized if
and only if the following conditions are all met: A. the developed products have been completed and accepted;
B.the Company have signed sales contract and fulfilled obligations under the contract; C. the Company have
delivered property to the owner or the contractual delivery date has expired after a notice or announcement of
occupation has been sent to the owner; and D. the Company has collected the full payments for the real estate
and related costs incurred or to be incurred can be measured reliably.
2) Rendering of property management services
Rendering of property management services is a performance obligation satisfied over time. Revenue from
property management services is recognized by the progress towards complete satisfaction of that performance
obligation which is determined based on the time progress.
3) Construction services
The Company provides construction services. Since the customer simultaneously receives and consumes the
economic benefits provided by the Company’s performance as the Company performs and the Company has an
enforceable right to the payments for performance completed to date during the whole contract period
construction services are performance obligations satisfied over time. Revenue from construction services is
recognized by the percentage of completion of the performance obligations which is determined by input
method. In the circumstance that the percentage of completion cannot be measured reasonably but the incurred
costs are expected to be recovered the Company recognizes revenue only to the extent of the incurred costs
until it can reasonably measure the percentage of completion.
4) Others
Other revenues include revenue from hotel operation etc. For revenue from rendering of hotel room services as
the customer simultaneously receives and consumes the economic benefits provided by the Company’s
performance as the Company performs the Company recognizes it as a performance obligation to be performed
over time and revenue is recognized based on the percentage of completion of the performance obligation
during the accounting period when services are provided. For revenue from rendering of other services it is
recognized when the customer has obtained the control over related goods and the Company has collected the
payments or has obtained the right to the payments according to relevant contract and agreement.
24. Costs of obtaining a contract and costs to fulfill a contract
The Company recognizes as an asset the incremental costs of obtaining a contract if those costs are expected to
be recovered.If the costs incurred in fulfilling a contract are not within the scope of standards related to inventories fixed
assets or intangible assets etc. the Company shall recognize the costs to fulfill a contract as an asset if all the
following criteria are satisfied:
A. The costs relate directly to a contract or to an anticipated contract including direct labor direct materials
manufacturing overhead cost (or similar cost) cost that are explicitly chargeable to the customer under the
contract and other costs that are only related to the contract;
B. The costs enhance resources of the Company that will be used in satisfying performance obligations in the
future; and
74ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
C. The costs are expected to be recovered.An asset related to contract costs shall be amortized on a systematic basis that is consistent with related goods
or services with amortization included into profit or loss.The Company shall make provision for impairment and recognize an impairment loss to the extent that the
carrying amount of an asset related to contract costs exceeds the remaining amount of consideration that the
Company expects to receive in exchange for the goods or services to which the asset relates less the costs
expected to be incurred. The Company shall recognize a reversal of an impairment loss previously recognized in
profit or loss when the impairment conditions no longer exist or have improved. The carrying amount of the
asset after the reversal shall not exceed the amount that would have been determined on the reversal date if no
provision for impairment had been made previously.
25. Contract assets contract liabilities
The Company presents contract assets or contract liabilities in the balance sheet based on the relationship
between its performance obligations and customers’ payments. Contract assets and contract liabilities under the
same contract shall offset each other and be presented on a net basis.The Company presents an unconditional right to consideration (i.e. only the passage of time is required before
the consideration is due) as a receivable and presents a right to consideration in exchange for goods that it has
transferred to a customer (which is conditional on something other than the passage of time) as a contract asset.The Company presents an obligation to transfer goods to a customer for which the Company has received
consideration (or the amount is due) from the customer as a contract liability.
26. Government grants
(1) Government grants shall be recognized if and only if the following conditions are all met:
A. the Company will comply with the conditions attaching to the grants;
B. the grants will be received. Monetary government grants are measured at the amount received or receivable.Non-monetary government grants are measured at fair value and can be measured at nominal amount in the
circumstance that fair value cannot be assessed.
(2) Government grants related to assets
Government grants related to assets are government grants with which the Company purchases constructs or
otherwise acquires long-term assets under requirements of government. In the circumstances that there is no
specific government requirement the Company shall determine based on the primary condition to acquire the
grants and government grants related to assets are government grants whose primary condition is to construct
or otherwise acquire long-term assets. They offset carrying amount of relevant assets or they are recognized as
deferred income. If recognized as deferred income they are included in profit or loss on a systematic basis over
the useful lives of the relevant assets. Those measured at notional amount are directly included into profit or
loss. For assets sold transferred disposed or damaged within the useful lives balance of unamortized deferred
income is transferred into profit or loss of the period in which the disposal occurred.
(3) Government grants related to income
Government grants related to income are government grants other than those related to assets. For government
grants that contain both parts related to assets and parts related to income in which those two parts are blurred
they are thus collectively classified as government grants related to income. For government grants related to
75ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
income used for compensating the related future cost expenses or losses they are recognized as deferred
income and included in profit or loss or used to offset relevant cost during the period in which the relevant cost
expenses or losses are recognized; for government grants related to income used for compensating the related
cost expenses or losses incurred to the Company they are directly included in profit or loss or used to offset
relevant cost.
(4) Government grants related to the ordinary course of business shall be included into other income or
used to offset relevant cost based on business nature while those not related to the ordinary course of
business shall be included into non-operating revenue or expenditures.
(5) Policy interest subvention
A. In the circumstance that government appropriates interest subvention to lending bank who provides loans
for the Company with a policy subsidized interest rate borrowings are carried at the amount received with
relevant borrowings cost computed based on the principal and the policy subsidized interest rate.B. In the circumstance that government directly appropriates interest subvention to the Company the subsidized
interest shall offset relevant borrowing cost.
27. Deferred tax assets/Deferred tax liabilities
1) Deferred tax assets or deferred tax liabilities are calculated and recognized based on the difference between
the carrying amount and tax base of assets and liabilities (and the difference of the carrying amount and tax base
of items not recognized as assets and liabilities but with their tax base being able to be determined according to
tax laws) and in accordance with the tax rate applicable to the period during which the assets are expected to be
recovered or the liabilities are expected to be settled.
2) A deferred tax asset is recognized to the extent of the amount of the taxable income which is most likely to
obtain and which can be deducted from the deductible temporary difference. At the balance sheet date if there
is any exact evidence indicating that it is probable that future taxable income will be available against which
deductible temporary differences can be utilized the deferred tax assets unrecognized in prior periods are
recognized.
3) At the balance sheet date the carrying amount of deferred tax assets is reviewed. The carrying amount of a
deferred tax asset is reduced to the extent that it is no longer probable that sufficient taxable income will be
available to allow the benefit of the deferred tax asset to be utilized. Such reduction is subsequently reversed to
the extent that it becomes probable that sufficient taxable income will be available.
4) The income tax and deferred tax for the period are treated as income tax expenses or income through profit or
loss excluding those arising from the following circumstances: A. business combination; and B. the
transactions or items directly recognized in equity.
5) Deferred tax assets and deferred tax liabilities shall offset each other and be presented on a net basis when the
following conditions are all met: A. the Company has the legal right to settle off current tax assets against
current tax liabilities; B. the deferred tax assets and the deferred tax liabilities relate to income taxes levied by
the same tax authority on either: a. the same taxable entity; or b. different taxable entities which intend either to
settle current tax liabilities and assets on a net basis or to realize the assets and settle the liabilities
simultaneously in each future period in which significant amounts of deferred tax assets or liabilities are
expected to be recovered or settled.
76ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
28. Leases
(1) The Company as lessee
At the commencement date the Company recognizes a lease that has a lease term of 12 months or less as a
short-term lease which shall not contain a purchase option; the Company recognizes a lease as a lease of a low-
value asset if the underlying asset is of low value when it is new. If the Company subleases an asset or expects
to sublease an asset the head lease does not qualify as a lease of a low-value asset.For all short-term leases and leases of low-value assets lease payments are recognized as cost or profit or loss
with straight-line method over the lease term.Apart from the above-mentioned short-term leases and leases of low-value assets with simplified approach the
Company recognizes right-of-use assets and lease liabilities at the commencement date.Right-of-use assets
The right-of-use asset is measured at cost and the cost shall comprise: 1) the amount of the initial measurement
of the lease liabilities; 2) any lease payments made at or before the commencement date less any lease
incentives received; 3) any initial direct costs incurred by the lessee; and 4) an estimate of costs to be incurred
by the lessee in dismantling and removing the underlying asset restoring the site on which it is located or
restoring the underlying asset to the condition required by the terms and conditions of the lease.The Company depreciates the right-of-use asset using the straight-line method. If it is reasonable to be certain
that the ownership of the underlying asset can be acquired by the end of the lease term the Company
depreciates the right-of-use asset from the commencement date to the end of the useful life of the underlying
asset. Otherwise the Company depreciates the right-of-use asset from the commencement date to the earlier of
the end of the useful life of the right-of-use asset or the end of the lease term.Lease liabilities
At the commencement date the Company measures the lease liability at the present value of the lease payments
that are not paid at that date discounted using the interest rate implicit in the lease. If that rate cannot be readily
determined the Company’s incremental borrowing rate shall be used. Unrecognized financing expenses
calculated at the difference between the lease payment and its present value are recognized as interest expenses
over the lease term using the discount rate which has been used to determine the present value of lease payment
and included in profit or loss. Variable lease payments not included in the measurement of lease liabilities are
included in profit or loss in the periods in which they are incurred.After the commencement date if there is a change in the following items: 1) actual fixed payments; 2) amounts
expected to be payable under residual value guarantees; 3) an index or a rate used to determine lease payments;
4) assessment result or exercise of purchase option extension option or termination option the Company
remeasures the lease liability based on the present value of lease payments after changes and adjusts the
carrying amount of the right-of-use asset accordingly. If the carrying amount of the right-of-use asset is reduced
to zero but there shall be a further reduction in the lease liability the remaining amount shall be recognized into
profit or loss.
(2) The Company as lessor
At the commencement date the Company classifies a lease as a finance lease if it transfers substantially all the
risks and rewards incidental to ownership of an underlying asset. Otherwise it is classified as an operating lease.Operating lease
77ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Lease receipts are recognized as lease income with straight-line method over the lease term. Initial direct costs
incurred shall be capitalized amortized on the same basis as the recognition of lease income and included into
profit or loss by installments. Variable lease payments related to operating lease which are not included in the
lease payment are charged as profit or loss in the periods in which they are incurred.Finance lease
At the commencement date the Company recognizes the finance lease payment receivable based on the net
investment in the lease (sum of the present value of unguaranteed residual value and lease receipts that are not
received at the commencement date discounted by the interest rate implicit in the lease) and derecognizes
assets held under the finance lease. The Company calculates and recognizes interest income using the interest
rate implicit in the lease over the lease term.Variable lease payments not included in the measurement of the net investment in the lease are charged as profit
or loss in the periods in which they are incurred.
29. Segment reporting
Operating segments are determined based on the structure of the Company’s internal organization management
requirements and internal reporting system. An operating segment is a component of the Company:
that engages in business activities from which it may earn revenues and incur expenses;
A. whose financial performance is regularly reviewed by the Management to make decisions about resource to
be allocated to the segment and to assess its performance; and
B. for which accounting information regarding financial position financial performance and cash flows is
available through analysis.
30. Significant changes in accounting policies
(1) Significant changes in accounting policies
□ Applicable √ Not Applicable
(2) Significant changes in accounting estimates
□ Applicable √ Not Applicable
(3) Adjustments to financial statement items at the beginning of the year of the first implementation of
the new accounting standards implemented since 2024
□ Applicable √ Not Applicable
VI. Taxation
1. Main types of taxes and corresponding tax rates
Taxes Tax bases Tax rates
The output tax calculated based on the revenue from
Value-added tax (VAT) sales of goods or rendering of services in accordance 9%.6%.5%.3%
with the tax law net of the input tax that is allowed to
78ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
be deducted in the current period
Sales tax Taxable sales amount (volume)
Urban maintenance
Turnover tax actually paid 7%
and construction tax
Enterprise income tax Taxable income 25%.16.5%
The incremental amount arising from the transfer of Progressive tax rates based
Land appreciation tax state-owned land use right and the buildings and on exceeding proportion of
structures that are constructed on the land value-added amount
For housing property levied on the basis of price
housing property tax is levied at the rate of 1.2% of the
Housing property tax balance after deducting 30% of the cost; for housing 1.2%.12%
property levied on the basis of rent housing property
tax is levied at the rate of 12% of lease income
Education surcharge Turnover tax actually paid 3%
Local education
Turnover tax actually paid 2%
surcharge
Different enterprise income tax rates applicable to different taxpayers:
Name of taxpayer Income tax rate
Shenzhen Huazhan Construction Supervision Co. Ltd.(the “Huazhan Supervision”) and Shantou Special
20%
Economic Zone Xiangshan Real Estate Development
Co. Ltd. (the “Shantou Songshan Company”)
Subsidiaries registered in Hong Kong SAR 16.5%
Taxpayers other than the above-mentioned 25%
2. Tax preferential policiesPursuant to the “Announcement of the Ministry of Finance and the State Taxation Administration on theEnterprise Income Tax Preferential Policies for Small Enterprises with Meager Profit and Individually-ownedBusinesses” (Announcement [2023] No. 6 of the Ministry of Finance and the State Taxation Administration)
from January 1 2023 to December 31 2024 enterprise income tax for the portion of the taxable income within
1 million yuan of small enterprises with meager profit is levied at 20% based on 25% of that portion of income.
The Company’s subsidiaries Huazhan Supervision and Shantou Songshan Company are subject to a preferential
tax rate of 20% as small enterprises with meager profit.VII. Notes to the consolidated financial statements
1. Cash at bank and Cash Equivalent
Presented in RMB
Items Closing balance Opening balance
Cash on hand 12863.36 18414.04
Deposits with banks 577455836.24 838926014.14
Other monetary funds 37901506.09 32074840.65
Total 615370205.69 871019268.83
Including: Total overseas deposits 5153474.96 5230453.64
Other notes:
At the end of 30 June 2024 there were CNY 7819480.96 of restricted funds in the bank deposits of which
CNY1951493.83 were the funds frozen by the lawsuit and CNY 5674439.78 were the funds for the
construction of public facilities in and around the city of Longgang district. land reclamation costs of the
Guangming Lane project of 143547.35 yuan and deposits for fixed-term engineering of 50000.00yuan. At the
end of 30 June 2024 the balance of other monetary funds of CNY37901506.09 is seven-day notice deposit.
79ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
2. Trading financial assets
Presented in RMB
Items As at 30 June 2024 As at 1 January 2024
As at fair value through profit or loss 929061785.11 879340201.92
Including::
wealth management fund 929061785.11 879340201.92
Including::
Total 929061785.11 879340201.92
3. Accounts receivable
(1) Disclosure by Aging
Presented in RMB
Aging As at 30 June 2024 As at 1 January 2024
Within 1 year(include 1 year) 80782995.32 71406321.18
1 to 2 years 9360676.74 9482461.05
2 to 3 years 6104956.84 7444786.11
More than 3 years 24199750.72 21248487.21
3 to 4 years 3121017.52 169754.01
4 to 5 years 3027934.33 3027934.33
More than 5 years 18050798.87 18050798.87
Total 120448379.62 109582055.55
(2) Disclosure by bad debt provision method
Presented in RMB
Closing balance Opening balance
Bad debt Bad debt
Book balance Book balance
provision provision
Types Provisi Book Provisi Book
Amoun Percent Amoun on value Amoun Percent Amoun on value
t age (%) t percent t age (%) t percent
age age
Bad
debt
provisi
ons
2498324983100.002498324983100.00
made 20.74% 0.00 22.80% 0.00
383.25383.25%383.25383.25%
on an
individ
ual
basis
Includi
ng:
Bad
debt 95464 95267 85938 84598 94977 75100
79.26%9.98%77.20%11.23%
provisi 996.37 21.37 275.00 672.30 01.47 970.83
ons
80ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
made
on a
combin
ation
basis
Includi
ng
1204410958
34510859383448175100
Total 8379.6 2055.5
104.62275.00084.72970.83
25
Name of the category of provision for bad debts by individual item: Accounts receivable for which provision for
bad debts is made separately and separately
Presented in RMB
Opening balance Closing balance
Items Bad debt Bad debt Provision
Book balance Book balance Reason
provision provision percentage
Agent for
import and
11574556.011574556.011574556.011574556.0
export 100.00%
0000
business
payment
Long-term
10084109.610084109.610084109.610084109.6
receivable of 100.00%
0000
property sale
Accounts
receivable
from the 2314755.46 2314755.46 2314755.46 2314755.46 100.00%
revoked
subsidiary
Accounts
receivable
1009962.191009962.191009962.191009962.19100.00%
from other
customers
24983383.224983383.224983383.224983383.2
Total
5555
Name of the category of provision for bad debts by combination: accounts receivable with provision for bad
debts by combination
Presented in RMB
Closing balance
Items
Book balance Bad debt provision Provision percentage
Other customers
95464996.379526721.379.98%
receivables
Total 95464996.37 9526721.37
Note to the basis for determining the combination:
Please refer to the way of disclosing other receivables’ bad debt provision to disclose relevant information if
the group choose to use general model of expected credit losses to accrue bad debts of accounts receivable.□ Applicable √ Not Applicable
81ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
(3) Recoveries or reversals of provision for the current period
Provision for the current period:
Presented in RMB
Amount changes in current period
Opening Closing
Types Recoveries or
balance Provision Written-off Others balance
reversals
Bad debt
provisions
24983383.224983383.2
made on an
55
individual
basis
Bad debt
provisions
made on a 9497701.47 29019.90 9526721.37
combination
basis
34481084.734510104.6
Total 29019.90
22
Including: significant recoveries or reversals of bad debt provisions in the current period are as follows:
Presented in RMB
The basis for
determining the
Recoveries or Reasons for Approaches to proportion of
Name of the entity
reversals amount reversals recoveries provision for bad
debts and its
reasonableness
(4) Actual write-off of accounts receivable in the current period
Presented in RMB
Items Written-off amount
Including the significant write-offs of accounts receivable are as follows:
Presented in RMB
Accounts
receivable
Nature of Approval
Name of the Written-off Reason for arising from
accounts procedures
entity amount written-off related party
receivable performed
transactions(Y/
N)
Note:
(5) The top five units with the ending balance of accounts receivable collected by the debtors
Presented in RMB
Closing
The closing % of the total Provision for
The closing balances of
balance of closing balance bad debts of
Debtors balance of the accounts
accounts of accounts accounts
contract asset receivable and
receivable receivable receivable and
contract assets provision for
82ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
impairment of
contract assets
Shenzhen
Hongteng
Investment 11882292.92 11882292.92 9.36% 3032263.70
Management
Co. Ltd.Shenzhen
Guangming
Construction
Engineering
9509429.41314304.629823734.037.74%294712.02
First
Construction
Engineering
Co. Ltd
Shenzhen
Branch of China
Construction 8865178.57 180231.40 9045409.97 7.13% 271362.30
Technology
Group Co. Ltd
Hubei Chuheng
Property Co. 7923562.99 992772.32 8916335.31 7.03% 267490.06
Ltd.Jiangsu Huajian
Construction
Co. Ltd. 7232909.91 337182.19 7570092.10 5.97% 227102.76
Shenzhen
Branch
Total 45413373.80 1824490.53 47237864.33 37.23% 4092930.84
4. Contract assets
(1) Details
Presented in RMB
Closing balance Opening balance
Items Provision for Carrying Provision for Carrying
Book balance Book balance
impairment amount impairment amount
Quality
guarantee 28198553.5 27352596.9
6444204.99193326.156250878.84845956.61
deposit 3 2
receivable
28198553.527352596.9
Total 6444204.99 193326.15 6250878.84 845956.61
32
(2) The amount and reason for the significant change in book value during the reporting period
Presented in RMB
Items Amount of changes Reasons for changes
Quality guarantee deposit Contract assets settled during the
-87506253.43
receivable year
The amount of the increase during
Quality guarantee deposit
65751904.89 the year due to changes in the
receivable
measurement of progress in
83ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
compliance
Total -21754348.54 ——
(3) Classified disclosure according to the accrual method of bad debts
Presented in RMB
Closing balance Opening balance
Bad debt Bad debt
Book balance Book balance
provision provision
Types Provisi Book Provisi Book
Amoun Percent Amoun on value Amoun Percent Amoun on value
t age (%) t percent t age (%) t percent
age age
Bad
debt
provisi
ons
64442100.00193326250828198100.008459527352
made 3.00% 3.00%
04.99%6.1578.84553.53%6.61596.92
on a
combin
ation
basis
Including:
Engine
ering
constru 64442 100.00 19332 62508 28198 100.00 84595 27352
3.00%3.00%
ction 04.99 % 6.15 78.84 553.53 % 6.61 596.92
combin
ation
64442100.00193326250828198100.008459527352
Total 3.00% 3.00%
04.99%6.1578.84553.53%6.61596.92
Provision for bad debts in accordance with the general model of expected credit losses
□Applicable □ Inapplicable
(4) Provision for bad debts accrued recovered or reversed in the current period
Presented in RMB
Accrual
Recoveries or Written-off
for the
Items reversals amount for amount for the Reasons
current
the current period current period
period
Part of the recognized contract
assets were settled in the current
year and the accrued
Engineering
impairment was reversed
construction 652630.46
according to the accrued
combination
impairment amount of the
engineering construction
portfolio
Total 652630.46
Among them the important amount of bad debt provision recovered or reversed in the current period:
84ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Presented in RMB
The basis for
determining the
Recoveries or Reasons for Approaches to proportion of
Name of the entity
reversals amount reversals recoveries provision for bad
debts and its
reasonableness
Other notes
5. Other receivables
Presented in RMB
Item Closing balance Opening balance
Other receivables 16772800.21 15893736.28
Total 16772800.21 15893736.28
(1) Interest receivable
1) Interest receivable classification
Presented in RMB
Item Closing balance Opening balance
2) Significant overdue interest
Presented in RMB
Whether
Overdue time impairment occurs
Borrowing unit The ending balance Overdue reason
(month) and the basis for
judgment
Other notes:
3) Bad Debt Provisions
□ Applicable √ Not Applicable
(2) Dividends receivable
1) Dividends receivable classification
Presented in RMB
Items (or invested units) Closing balance Opening balance
2) Significant dividends receivable overdue more than one year are as follows:
Presented in RMB
Whether
Items (or invested Reasons for not
Closing balance Aging impairment occurs
units) retrieving
and the basis for
85ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
judgment
3) Bad Debt Provisions
□ Applicable √ Not Applicable
Other notes:
(3) Other receivables
1) Other receivables disclosure by nature
Presented in RMB
Items Book balance as at 30 June 2024 Book balance as at 1 January 2024
Other receivables from related
161393309.25161393309.25
parties
Other receivables from the
165460.00165460.00
government
Other receivables from employee’s
50849.76841714.00
petty cash
Other receivables from the
379580.45360901.91
collecting and paying on behalf
Other receivables from other
47467135.4544888290.81
customers
Total 209456334.91 207649675.97
2) Disclosure by aging
Presented in RMB
Aging Book balance as at 30 June 2024 Book balance as at 1 January 2024
Within 1 year(include 1 year) 8868952.85 6047963.14
1 to 2 years 8979725.26 15390258.93
2 to 3 years 6218519.00 103956.68
More than 3 years 185389137.80 186107497.22
3 to 4 years 27500.00 200.00
4 to 5 years 300.00 100.00
More than 5 years 185361337.80 186107197.22
Total 209456334.91 207649675.97
3) Disclosure by bad debt accrual method
□Applicable □ Inapplicable
Presented in RMB
Closing balance Opening balance
Provision for bad Provision for bad
Book balance Book balance
Cate debts debts Carryin Carryin
gories Provisi Provisig g
Amoun % to Amoun on Amoun % to Amoun on
amount amount
t total t proport t total t proport
ion (%) ion (%)
Receiv 19237 91.84% 19200 99.81% 37185 19144 92.20% 19107 99.81% 36898
86ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
ables 4883.4 3026.8 6.60 4224.0 5243.8 0.20
with 0 0 6 6
provisi
on for
bad
debts
made
on an
individ
ual
basis
Including:
Provisi
on for
bad
170816805016400162056806915524
debts 8.16% 3.98% 7.80% 4.20%
451.517.90943.61451.915.83756.08
by
portfoli
o
Including:
20945192682076419175
100.0016772100.0015893
Total 6334.9 3534.7 91.99% 9675.9 5939.6 92.35%
%800.21%736.28
1079
Provision for bad debts based on the general model of expected credit losses:
Presented in RMB
first stage Second stage Third stage
To 12-month To lifetime
Bad Debt Provision To 12-month expected credit loss expected credit loss Total
expected credit loss (no credit (has occurred credit
impairment) impairment)
Balance Opening
177917.80374179.82191203842.07191755939.69
balance
Balance Opening
balance in current
period
Return the current -187.93
Other changes 927782.94 927782.94
Balance Closing
177729.87374179.82192131625.01192683534.70
balance
The basis for the division of each stage and the proportion of bad debt provision:
Changes in the book balance with significant changes in the loss provision for the current period:
□ Applicable √ Not Applicable
4) Provision for bad debts accrued recovered or reversed in the current period
Provision for bad debts in the current period:
Presented in RMB
Increase/Decrease
Opening Closing
Items
balance Recovery or Accrual Write-off Others balance
reversal
Bad debt 191755939. 192683534.-187.50927782.94
provision for 69 70
87ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
other
accounts
receivable
191755939.192683534.
Total -187.50 927782.94
6970
Additions recoveries or reversals of provision for the current period:
Presented in RMB
The basis for determining
Amount of
Reasons for Approaches to the proportion of provision
Name of the entity recoveries or
reversals recoveries for bad debts and its
reversals
reasonableness
5) Other receivables actually written off in the current period
Presented in RMB
Items Amount of written-off
Including the important accounts receivable write-off situation is as follows:
Presented in RMB
Whether the
Verification and
payment is
Name of the Nature of other Amount of cancellation
Reason generated by an
entity receivable written-off procedures to be
affiliate
performed
transaction
Note:
6) The top five units of ending balance of other receivables
Presented in RMB
Proportion of
Ending balance Ending balance
Name of the Nature of other total ending
of other Aging of bad debt
entity receivables balance of other
receivables provision
receivables (%)
Canada Great
Balances due
Wall
from related 89035748.07 Over 5 years 42.51% 89035748.07
(Vancouver)
parties
Co. Ltd
Balances due
Paklid Limited from related 19393335.84 Over 5 years 9.26% 19393335.84
parties
Australia
Balances due
Bekaton
from related 12559290.58 Over 5 years 6.00% 12559290.58
property
parties
Limited
Guangdong
province Balances due
Huizhou Luofu from related 10465168.81 Over 5 years 5.00% 10465168.81
Hill Mineral parties
Water Co.Ltd
Xi’an Fresh Balances due
Peak Property from related 8419205.19 Over 5 years 4.02% 8419205.19
Trading Co. parties
88ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Ltd
Total 139872748.49 66.78% 139872748.49
7) Reported to other receivables as a result of centralized management of funds
6. Advances paid
(1) Age analysis
Presented in RMB
Closing balance Opening balance
Ages
Book balance % to total Book balance % to total
Within 1 year 21821.40 5.21% 12271.61 3.00%
1-2 years 196920.46 47.03% 196920.46 48.12%
2-3 years 200000.00 47.76% 200000.00 48.88%
Over 3 years 418741.86 409192.07
Explanation of the reasons why the prepayment that is more than 1 year old and the amount of important
amount is not settled in time:
(2) The top five prepayments at the end of the period aggregated by prepayment object
Book Proportion to the total balance of
Name of the entity
Balance advances paid (%)
Guangdong Legal Shengbang (Shenzhen) Law Firm 200000.00 47.76
Huizhou Huiyang Power Supply Bureau of Guangdong
98840.2923.60
Power Grid Co. Ltd.China Telecom Co. Ltd. 13728.80 3.28
China Telecom Co. Ltd. Huizhou Huiyang District
3043.000.73
Branch
Sinopec Sales Corporation Guangdong Shenzhen
2777.910.66
Petroleum Branch
Subtotal 318390.00 76.03
Other notes:
7. Inventories
Does the Company need to comply with the disclosure requirements of real estate industry
Yes
(1) Inventory classification
The company complies with the disclosure requirements of "Shenzhen Stock Exchange Industry Information
Disclosure Guidelines No. 3-Listed Companies Engaged in Real Estate Business".Classified by nature:
Presented in RMB
Closing balance Opening balance
Provision for Provision for
Items Carrying Carrying
Book balance decline in Book balance decline in
value of amount value of amount
inventories or inventories or
89ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
impairment impairment
of contractual of contractual
performance performance
costs costs
Development 368618125 391731506. 329444974 357269711 391731506. 318096560
costs 1.39 81 4.58 5.80 81 8.99
Developed 725007278. 725007278. 733935274. 733935274.products 17 17 64 64
Raw
56494.4056494.4049504.0049504.00
materials
Goods on
302977.9738891.91264086.06304426.2438891.91265534.33
hand
441154800391770398.401977760430698632391770398.391521592
Total
1.93723.210.68721.96
The main Items of " Real estate developing cost " and their interest capitalization are shown below:
Presented in RMB
Includ
e:
Estima Less:
Amou
ted Transf
Add: Cumul nt of
Estima total er to
Openi Less: develo Closin ative interes
ted invest real Source
Proje Start ng Other pment g interes t
compl ments estate s of
cts time balanc reducti costs balanc t capital
etion (in ten develo funds
e on increa e capital ized in
time thousa ped
se ization the
nd produc
curren
yuan) ts
t
period
Shenfa
ng 30 30 2310 2311 40384
300001201
Linxin Jun.20 Jun.20 16167 36329 162.9 0.00 Others
0.00622.43
Comm 21 25 2.58 5.01 5
unity
Shenfa
Bank
ng 31 1234 11228 1346
8 Feb. 15206 7685 2181 loans
Guang Dec.2 24353 2513. 52604
2022 0.00 781.90 957.34 and
ming 024 5.11 16 8.27
others
Lane
Shanto
u
2829128291
Xinfen
908.1 908.1 Others
g
11
Buildi
ng
357211348368648069
452062181
Total 69711 4135. 18125 944.8
0.00957.34
5.80591.395
The main Items of "Real estate developed products" and their interest capitalization are shown below:
Presented in RMB
Include:
Cumulative Amount of
Completio Opening Closing interest interest
Projects Increase Decrease
n time balance balance capitalizati capitalized
on in the
current
90ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
period
Tianyue
30464226285718201.45850808
Bay Phase
Jun.2021 3.22 06 2.16
II
Tianyue
15198499942874235.19562570
Bay Phase
Dec.2017 1.34 97 5.37
I
Golden
Leaf Island
Haitian
Pavilion 16 39734763 39919163
184400.00
Multi Sep.1997 .87 .87
Multi-
Story
Apartment
Shenfang
Cuilin 8 17044647 16524687
519959.44
Communit May.2018 .25 .81
y
Yue King
18 Nov. 6121027. 6121027.
Oriental
20140707
Project
Golden
5641278.5641278.
Leaf Island 2 Dec.2010
5454
Phase X
Golden
202222776.2222776.
Leaf Island
Aug.2008 30 30
Phase XI
Beijing
Xinfeng 304557.05 304557.05
Building
Whampoa
New 140000.00 140000.00
Village
733935279112396.72500727
Total 184400.00
4.64478.17The main Items of "instalment on development products” "leased development products” “Revolving room”
are shown below:
Presented in RMB
Items Completion time Opening balance Increase Decrease
(2) Data resources that are recognized as inventory
Presented in RMB
Inventory of Inventory of self- Inventory of data
Items purchased data processed data resources obtained Total
resources resources by other means
(3) Provision for inventories and impairment of contract performance costs
Disclose the provision for inventory decline in the following format:
Classified by nature:
Presented in RMB
91ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Increase Decrease
Opening Closing
Items Reversal or Note
balance Accrual Others Others balance
write-off
Developme 39173150 39173150
nt costs 6.81 6.81
Shenfang
Linxin
38891.9138891.91
Communit
y
3917703939177039
Total
8.728.72
Categorized by major Items:
Presented in RMB
Increase Decrease
Opening Closing
Items Reversal or Note
balance Accrual Others Others balance
write-off
Shenfang
Linxin 39173150 39173150
Communit 6.81 6.81
y
3917315039173150
Total
6.816.81
(4) The ending balance of inventory contains the explanation of the capitalized amount of borrowing
expenses:
As at 30 June 2024 the Group's inventory balance contains capitalized borrowing costs at 48069944.85 yuan.
(5)Restriction on Inventories
Disclose restriction on Inventories by projects:
Presented in RMB
Name of project Opening balance Ending balance Reason of restriction
8. Other current assets
Presented in RMB
Items Closing balance Opening balance
Contract acquisition costs 6447212.52 6815071.01
Overpaid or prepaid enterprise
39920205.756212008.00
income taxes
Prepaid VAT 67043997.19 1974376.95
Input VAT to be credited 15260391.31 64189088.61
Land appreciation tax 28857173.86 3472045.32
Business tax 114320.85 195546.35
Others 4749861.89 4317126.82
Total 162393163.37 87175263.06
Other notes:
9. Investments in other equity instrument
Presented in RMB
92ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Specified
as the
reason for
Gains Losses
the
accrued accumula
measure
at the end ted at the Dividend
ment at
of the end of the income
The The fair value
Opening period period recognize Closing
Items cumulativ cumulativ and the
balance through through d in the balance
e gains e loss change
other other current
thereof
comprehe comprehe period
through
nsive nsive
other
income income
comprehe
nsive
income
Shantou
Small
&Mediu
m
1432441735928.76771704777600.01506034
Enterpris
1.358.5600.13
es
Financing
Guarante
e Co. Ltd
1432441735928.76771704777600.01506034
Total
1.358.5600.13
10. Long-term equity investments
Presented in RMB
Increase/Decrease Balan
Openi Invest Decla ce of
ng
Openi ment red
provis
Endin
balan
ng incom distri
ion
g
ce of Provi for
Invest balan e Adjus Other butio
provis sion f
balan
ees ce Increa Decre recog tment equity n of
impai
ion or Other
ce
(book se ase nized in move cash
rment
(book
for impai
value) under OCI ments divide
as
impai rment
value)
equity nds or June
rment met profit 30
ho s 2024
1. Joint ventures
Guan
gdong
Huizh
ou
Luofu
shan 9969 9969 9969 9969
Miner 206.0 206.0 206.0 206.0
al 9 9 9 9
Water
Bever
age
Co.Ltd.Fengk 9455 9455 9455 9455
ai 465.3 465.3 465.3 465.3
93ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Xingh 8 8 8 8
ua
Hotel
1942194219421942
Subto
4671.4671.4671.4671.
tal
47474747
2. Associates
Shenzh
en
Rongh
ua
Electro 1076 1076 1076 1076
mecha 954.6 954.6 954.6 954.6
nical 4 4 4 4
Engine
ering
Co.Ltd.Shenz
hen
Runh
ua
Auto 1445 1445 1445 1445
mobil 425.5 425.5 425.5 425.5
e 6 6 6 6
Tradi
ng
Co.Ltd.Dong
yi
3037303730373037
Prope
6084.6084.6084.6084.
rties
89898989
Co.Ltd.
3289328932893289
Subto
8465.8465.8465.8465.
tal
09090909
5232523252325232
Total 3136. 3136. 3136. 3136.
56565656
Other notes
11. Investment property
(1) Investment properties measured using the cost model
Presented in RMB
Construction in
Items Buildings Land use rights Total
progress
Ⅰ. Original book
value:
1.Opening
1044744895.39109170407.591153915302.98
balance
94ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
2. Decrease during
402296.81402296.81
the year
(1)Purchase
(2)Transfer from
Inventories\Fixed
assets\ construction
in progress
(3)Increases due to
business
combinations
(4)Others
(Exchange Rate 402296.81 402296.81
Changes)
3. Decrease during
1267121.541267121.54
the year
(1)Disposals 1267121.54 1267121.54
(2)Other transfers
out
4.Balance as at 30
1043477773.85109572704.401153050478.25
June 2024
II. Accumulated
depreciation or
amortization
1.Opening
508643374.73508643374.73
balance
2. Charge for the
12648643.0212648643.02
year
(1)Depreciated or
12648643.0212648643.02
amortized
3. Reductions
759230.74759230.74
during the year
2. Charge for the
759230.74759230.74
year
(1)Depreciated or
amortized
4.Closing
520532787.01520532787.01
balance
III. Provision for
impairment
1.Opening
14128544.6289601247.46103729792.08
balance
2.Increase
330183.77330183.77
during the period
(1)provisi
on
(2)Other
(exchange rate 330183.77 330183.77
changes)
3.Decrease
45834.1445834.14
during the period
95ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
(1)Dispos
45834.1445834.14
als
(2)Other
transfers out
4.Closing
14082710.4889931431.23104014141.71
balance
IV. Book value
1.Closing book
508862276.3619641273.17528503549.53
value
2.Opening
521972976.0419569160.13541542136.17
book value
(2) Investment property measured at fair value
The company complies with the disclosure requirements of "Shenzhen Stock Exchange Industry Information
Disclosure Guidelines No. 3-Listed Companies Engaged in Real Estate Business"
Investment properties measured using fair value disclosure by Items:
Presented in RMB
Reasons
Rental
Movemen and Index
Project Completi building income in Opening Closing
Location t in Fair for fair
name on Time area(㎡) reporting fair value fair value
value value
period
change
Does the company have investment real estate that is currently under construction
□ Yes √ No
Whether the company has new investment real estate measured at fair value in the current period
□ Yes √ No
(3) Converted into investment real estate and measured at fair value
Presented in RMB
Accounting Impact on
Impact on
accounts Reason for Approval other
Items Amounts profit and
before conversion process comprehensi
loss
conversion ve income
(4) Investment properties pending certificates of ownership
Presented in RMB
Reason why certificates are
Items Book value
pending
12. Fixed assets
Presented in RMB
Items Closing balance Opening balance
Fixed assets 18955069.88 19928049.77
Total 18955069.88 19928049.77
96ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
(1) Details of fixed assets
Presented in RMB
Electronic
Items Plant & buildings Motor vehicles equipment and Total
others
Ⅰ. Original book
value:
1.Opening
100422074.107115129.618083418.39115620622.10
balance
2. Increase
376600.0068594.73445194.73
during the year
(1) Purchases 376600.00 68594.73 445194.73
(2) Transfers from
construction in
progress
(3) Additions due to
business
combinations
3. Decrease during
74733.003499.0078232.00
the year
(1) Disposals or
74733.003499.0078232.00
written-offs
4.Closing
100347341.107491729.618148514.12115987584.83
balance
II. Accumulated
depreciation
1.Opening
83816391.645821431.056054749.6495692572.33
balance
2. Increase
1153139.34113483.87221960.211488583.42
during the year
(1)
1078818.94113483.87221960.211414263.02
Provision
3. Decrease
74320.4074320.40
during the year
(1)
Disposal or written- 74320.40 74320.40
offs
4.Closing
84820890.185934914.926276709.8597032514.95
balance
III. Provision for
impairment
1.Opening
balance
2. Increase
during the year
(1) Provision
3. Reductions for
the year
97ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
(1)
Disposals or
written-offs
4.Closing
balance
IV. Book value
1.Closing book
15526450.921556814.691871804.2718955069.88
value
2.Opening
16605682.461293698.562028668.7519928049.77
book value
(2) Temporarily idle fixed assets
Presented in RMB
Accumulated Provision for
Items Cost Book value Note
depreciation impairment
(3) Fixed assets leased out under operating leases
Presented in RMB
Items Closing book value
(4) Fixed assets pending certificates of ownership
Presented in RMB
Reason why certificates of
Items Book value
ownership are pending
Other notes:
(5) Impairment testing of fixed assets
□Applicable □ Inapplicable
(6) Fixed assets liquidation
Presented in RMB
Items Closing balance Opening balance
Other notes:
13. Right-of-use assets
(1) Details of right-of-use assets
Presented in RMB
Items Plant & buildings Total
Ⅰ. Original book value:
1.Opening balance 431779.61 431779.61
2. Increase during the year
98ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
3. Decrease during the year
4.Closing balance 431779.61 431779.61
II. Accumulated depreciation
1.Opening balance 332138.13 332138.13
2. Increase during the year 66427.62 66427.62
(1) Provision 66427.62 66427.62
3. Decrease during the year
(1) Disposal or written-
offs
4.Closing balance 398565.75 398565.75
III. Provision for impairment
1.Opening balance
2. Increase during the year
(1) Provision
3. Decrease during the year
(1) Disposal or written-
offs
4.Closing balance
IV. Book value
1.Closing book value 33213.86 33213.86
2.Opening book value 99641.48 99641.48
14. Intangible assets
(1) Details of intangible assets
Presented in RMB
Non-
Land use Patent
Items patented Software Total
rights right
technology
Ⅰ. Original book value:
1.Opening balance 2192000.00 2192000.00
2. Increase during the year
(1) Purchase
(2) Internal development
(3) Additions due to
business combination
3. Decrease during the year
(1) Disposals
4.Closing balance 2192000.00 2192000.00
II. Accumulated depreciation
1.Opening balance 2192000.00 2192000.00
2. Increase during the year
(1) Provision
3. Decrease during the year
(1) Disposal or written-
99ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
offs
4.Closing balance 2192000.00 2192000.00
III. Provision for impairment
1.Opening balance
2. Increase during the year
(1) Provision
3. Decrease during the year
(1) Disposal or written-
offs
4.Closing balance
IV. Book value
1.Closing book value
2.Opening book value
The carrying amount of intangible assets of the Group arising from internal development is 0.00% of the total
carrying amount of intangible assets at the end of the year.
(2) Data resources that are recognized as intangible assets
Presented in RMB
Intangible assets of
Intangible assets of Intangible assets of
data resources
Items purchased data self-processed data Total
obtained by other
resources resources
means
(3) Land use rights pending certificates of ownership
Presented in RMB
Reason why certificates of
Items Book value
ownership are pending
Other notes
15. Long-term amortized expenses
Presented in RMB
Opening Additions amortization for Others
Items Closing balance
balance during the year the year decreases
Renovation
1309140.94299465.281009675.66
Costs
Others 289164.62 83999.46 205165.16
Total 1598305.56 383464.74 1214840.82
Other notes
16. Deferred tax assets/Deferred tax liabilities
(1) Deferred tax assets and deferred tax liabilities that are not offset
Presented in RMB
Items Closing balance Opening balance
100ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Deductible or Deductible or
Deferred tax assets Deferred tax assets
taxable temporary taxable temporary
Provisions for
impairment of 16901090.32 4225272.58 16963840.11 4225272.58
assets
Unrealized profits
of infra-group 80397191.40 20099297.85 80397191.40 20099297.85
transactions
Deductible tax
43505430.5610876357.6443152112.4910788028.12
losses
Provision for land
appreciation tax 2140368.96 535092.24 2140368.96 535092.24
liquidation reserves
Accrued
2660481.88665120.472660481.88665120.47
Contractual cost
Total 145604563.12 36401140.78 145313994.84 36312811.26
(2) Deferred tax liabilities without offsetting
Presented in RMB
Closing balance Opening balance
Items Deductible or Deductible or Deferred tax Deferred tax
taxable temporary taxable temporary
liabilities liabilities
differences differences
Changes in the fair
value of other
2324411.36581102.842324411.36581102.84
equity instrument
investments
Changes in fair
value of held-for-
7824348.721956087.187824348.721956087.18
trading financial
assets
Interest not due 1901506.08 475376.52 1901506.08 475376.52
Total 12050266.16 3012566.54 12050266.16 3012566.54
(3) Deferred tax assets or deferred tax liabilities disclosed as net amount after offsetting
Presented in RMB
Deferred tax assets Deferred tax assets
Amount of Amount of
or liabilities after or liabilities after
Items offsetting as at 30 offsetting as at 31
offsetting as at 30 offsetting as at 31
June 2024 Dec. 2023
June 2024 Dec. 2023
Deferred tax assets 36401140.78 36312811.26
Deferred tax
3012566.543012566.54
liabilities
(4) Details of unrecognized deferred tax assets
Presented in RMB
Items Closing balance Opening balance
Deductible temporary differences 927327869.24 927951667.74
Deductible tax losses 27426841.16 68296307.42
101ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Total 954754710.40 996247975.16
(5) Expiration of deductible tax losses for unrecognized deferred tax assets
Presented in RMB
Year Closing amount Opening amount Note
2024688456.49
20251629.251629.25
2026346891.06346891.06
202716546244.2448904614.38
202810532076.6118354716.24
Total 27426841.16 68296307.42
Other notes
17. Assets with restricted ownership or use
Presented in RMB
Closing balance Opening balance
Rest
Items ricte Restricted Restr Restricted Book Book
Book value d circumsta Book value icted circumsta
balance balance
type nces types nces
s
Public Public
facilities facilities
projects projects
in and in and
around around
urban urban
renewal renewal
projects projects
in in
Longgang Longgang
Imp District District
Monetary 5817987 5817217.7 5817217.7 Seiz
5817987.13 oun Shenzhen Shenzhen
funds .13 8 8 ed
d - -
constructi constructi
on funds; on funds;
The cost The cost
of land of land
reclamati reclamati
on for the on for the
Shenfang Shenfang
Guangmi Guangmi
ng Lane ng Lane
project project
Notes
receivabl
e
Inventory
Fixed
assets
Intangible
102ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
asset
Monetary 1951493 Free Litigation 5943085.1 5943085.1 Free Litigation
1951493.83
funds .83 ze freeze 8 8 ze freeze
Construct Construct
Imp
Monetary ion Impo ion
50000.00 50000.00 oun 50000.00 50000.00
funds security und security
d
deposit deposit
Stop
Monetary Impo payment
62552.5262552.52
funds und suspend
account
Pledge of Pledge of
Accounts
1946597 Pled short- 27890361. 27890361. Pled short-
receivabl 19465979.77
9.77 ge term 58 58 ge term
e
loans loans
Investme Coll Borrowin Coll Borrowin
103165510316559144297197.
nt real 44297197.87 atera g atera g
91.84.8487
estate l collateral l collateral
130451014292880884060414.
Total 71582658.60
52.57.9093
Other notes:
18. Short-term loans
(1) Classification of short-term loans
Presented in RMB
Items Closing balance Opening balance
Factoring of receivables 10310396.09 3550000.00
Total 10310396.09 3550000.00
Notes on classification of short-term borrowings:
(2) Past due short-term loans
The total balance of past due short-term loans at the end of the year is RMB 0 including significant Items are as
follows:
Presented in RMB
Interest rate if
Lender Closing balance Interest rate Past due period
overdue
Other notes
19. Accounts payable
(1) Details of accounts payable
Presented in RMB
Items Closing balance Opening balance
Construction 400330473.28 442529992.29
Others 3431618.82 729776.49
Total 403762092.10 443259768.78
103ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
(2) Significant accounts payable with age over one year
Presented in RMB
Reasons for non-reimbursement or
Items Closing balance
carry-over
China Railway Second Bureau
104922084.43 Not yet settled
Group Co. Ltd.Huizhou Jinlongsheng Industry
84950000.00 Not yet settled
Co. Ltd.Huizhou Huiyang Hongfa Industry
50350000.00 Not yet settled
& Trade Co. Ltd.Huizhou Mingxiang Economic
41851375.00 Not yet settled
Information Consulting Co. Ltd.Guangzhou Mingji Construction
12572856.16 Not yet settled
Co. Ltd.Total 294646315.59
Other notes:
20. Other payables
Presented in RMB
Items Closing balance Opening balance
Interest payable 16535277.94 16535277.94
Other payables 542929961.14 537933951.65
Total 559465239.08 554469229.59
(1) Interest payables
Presented in RMB
Items Closing balance Opening balance
Interest of borrowings from non-
financial institutions (interest 16535277.94 16535277.94
payable to parent company)
Total 16535277.94 16535277.94
Details of significant interest payable overdue but unpaid:
Presented in RMB
Creditors Amount overdue Reasons for overdue
Shenzhen Investment Holdings
16535277.94 Suspension of payment
Co. Ltd.Total 16535277.94
Other notes:
(2) Dividends payables
Presented in RMB
Items Closing balance Opening balance
Other notes including significant dividends payable that have been outstanding for more than one year for
which the reason for non-payment should be disclosed:
104ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
(3) Other payables not mentioned above
1) Other accounts payable by nature of payment
Presented in RMB
Items Closing balance Opening balance
Balances due to non-related parties 205786265.95 177620294.46
Balances due to related parties 234128204.66 234129312.99
Deposits 26637684.41 27861196.50
Others 76377806.12 98323147.70
Total 542929961.14 537933951.65
2) Significant other payables with age over one year
Presented in RMB
Reasons for non-reimbursement or
Items Closing balance
carry-over
Guangzhou Bopi Enterprise
206903717.13 Not yet settled
Management Consulting Co. Ltd.Huizhou Guirong Investment
102197564.38 Not yet settled
Information Consulting Co. Ltd.Huizhou Huiyang Hongfa Industry
26894095.89 Not yet settled
& Trade Co. Ltd.Huizhou Mingxiang Economic
26131960.68 Not yet settled
Information Consulting Co. Ltd.Total 362127338.08
Other notes
21. Advances received
(1) Details of advances received
Presented in RMB
Items Closing balance Opening balance
Payments for goods of agency
214630.00214630.00
import and export business
Others 123147.18 206094.30
Total 337777.18 420724.30
Other notes:
22. Contractual liabilities
Presented in RMB
Items Closing balance Opening balance
Payments for house sale received
1375699065.821290868600.78
in advance
Room charges received in advance 56197.55 56197.55
Payments for goods received in
351328.33351328.33
advance
Engineering funds received in
172464.62172464.62
advance
105ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Total 1376279056.32 1291448591.28
Significant contractual liabilities aged over 1 year:
Presented in RMB
Reasons for non-reimbursement or
Items Closing balance
carry-over
Amount and reasons for significant changes in book value during the reporting period:
Presented in RMB
Items Amount of change Reason for change
Payments for
house sale Pre-sale of Shenfang Guangming Lane Real Estate
84830465.04
received in Project in the current period
advance
Total 84830465.04
The company needs to comply with the disclosure requirements of "real estate industry" in the "Shenzhen Stock
Exchange Listed Company Self-Regulatory Supervision Guidelines No. 3 - Industry Information Disclosure"
Receipt information of the top five projects in the pre-sale amount:
Presented in RMB
Proportion
Estimated
No. Items Opening balance Closing balance of pre-sales
completion date
(%)
Shenfang
1 1247568338.53 1346926517.07 31 Dec.2024 99.74%
Guangming Lane
23. Employee benefits payable
(1) Details of employee benefits payable
Presented in RMB
Items Opening balance Increase Decrease Closing balance
Ⅰ. Short-term
22194258.1533270719.4832253308.4123211669.22
employee benefits
II. Post-employment
benefits - defined 52759.21 4961914.09 4963931.69 50741.61
contribution plan
III.Termination
110421.00110421.000.00
benefits
Total 22247017.36 38343054.57 37327661.10 23262410.83
(2) Details of short-term employee benefits
Presented in RMB
Closing
Items Opening balance Increase Decrease
balance
1. Wage bonus allowance
21950880.0226586752.6025452247.7523085384.87
and subsidy
2. Employee welfare fund 150000.00 1859092.39 1974140.91 34951.48
3. Social insurance premium 1245657.77 1245657.77
Including: Medicare premium 1088739.25 1088739.25
Occupational injuries 57728.53 57728.53
106ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
premium
Maternity premium 99189.99 99189.99
4. Housing provident fund 2601367.28 2601367.28
5. Trade union fund and
93378.13977849.44979894.7091332.87
employee education fund
Total 22194258.15 33270719.48 32253308.41 23211669.22
(3) Details of defined contribution plan
Presented in RMB
Items Opening balance Increase Decrease Closing balance
1. Basic
endowment 2945746.11 2945746.11
insurance premium
2. Unemployment
172742.36172742.36
insurance premium
3. Company
52759.211843425.621845443.2250741.61
annuity payment
Total 52759.21 4961914.09 4963931.69 50741.61
Other notes
24. Taxes and rates payable
Presented in RMB
Items Closing balance Opening balance
VAT 3379137.35 6952681.57
Enterprise income tax 19160769.32 25379573.98
Individual income tax withheld for
557495.90666822.33
tax authorities
Urban maintenance and
1138187.531379662.47
construction tax
Land appreciation tax 5867602.01 4646137.48
Housing property tax 4628880.94 250796.18
Education surcharge 488667.87 592022.63
Local education surcharge 313369.24 382272.44
Others 494217.20 659017.40
Total 36028327.36 40908986.48
Other notes
25. Non-current liabilities due within one year
Presented in RMB
Items Closing balance Opening balance
Long-term borrowings due within
50282173.2034001293.81
one year
Lease liabilities due within one
34476.4655054.12
year
Total 50316649.66 34056347.93
Other notes:
26. Other current liabilities
Presented in RMB
107ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Items Closing balance Opening balance
Sales tax to be transferred 122982749.06 115574168.18
factoring of accounts receivable 9155583.68 20790361.58
Total 132138332.74 136364529.76
Increase or decrease in short-term bonds payable:
27. Long-term loans
(1) Classification of long-term loans
Presented in RMB
Items Closing balance Opening balance
Pledge loan 62336264.42 179431851.02
Total 62336264.42 179431851.02
Note:
Additional notes including interest rate ranges:
28. Other comprehensive income
Presented in RMB
Items Opening balance Increase Decrease Closing balance
Capital premium
557433036.93557433036.93
(equity premium)
Other capital
420811873.18420811873.18
surplus
Total 978244910.11 978244910.11
Other notesincluding an explanation of the increase or decrease during the period and the reasons for the
change:
29. Other comprehensive income
Presented in RMB
Current amount
Less:
Less:
included
included
in other
in other
comprehe
comprehe
nsive
nsive
income in
The income in Attributa
the Attributa
Opening current the Less: ble to
Items previous ble to the
Closing
balance income previous Income minority period parent balance
tax before period tax sharehold
and company
the and expense ers after
transferre after tax
amount transferre tax
d to
d to profit
retained
or loss in
earnings
the
in the
current
current
period
period
I. Other 2159512 735928.7 735928.7 2895441
comprehe .75 8 8 .53
108ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
nsive
income
that
cannot be
reclassifie
d into
profits
and
losses
Changes
in the fair
value of
other
2159512735928.7735928.72895441
equity.7588.53
instrumen
t
investme
nts
II.Other
comprehe
nsive
income - - -
23159942041674
which is 2844766 2743198 101568.0
6.698.53
reclassifie .16 .16 0
d into
profit and
loss
Translatio
n
difference
s arising
from - - -
23159942041674
translatio 2844766 2743198 101568.0
6.698.53
n of .16 .16 0
foreign
currency
financial
statement
s
---
25319452331219
Total 2108837 2007269 101568.0
9.440.06.38.380
Other notes including the adjustment of the effective portion of the cash flow hedging gain or loss to the
initially recognized amount of the hedged item:
30. Surplus reserve
Presented in RMB
Additions during Reductions during
Item Opening balance Closing balance
the year the year
Statutory surplus
275253729.26275253729.26
reserve
Total 275253729.26 275253729.26
Other notes:
109ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
31. Retained earnings
Presented in RMB
Item Current amount Amount of previous period
Before adjustment: Retained
earnings at the end of the previous 1400604385.39 1713155187.48
period
After adjustment: Retained
earnings at the beginning of the 1400604385.39 1713155187.48
reporting period
Plus:Net profits for the year
5622791.39-37118182.81
attributable to owners of the Group
Dividends payable to ordinary
61711260.00
shares
Retained earnings at the end of the
1406227176.781614325744.67
reporting period
Adjustments on beginning retained earnings are as follows:
1). Retrospective adjustments of RMB 0.00 made on beginning retained earnings in accordance with CAS and
related new regulations.
2). RMB 0.00 on beginning retained earnings due to changes in accounting policies.
3). RMB 0.00 on beginning retained earnings due to corrections of significant accounting errors.
4). RMB 0.00 on beginning retained earnings due to changes in consolidation scope resulting from business
combinations involving entities under common control.
5). RMB 0.00 on beginning retained earnings due to other adjustments.
32. Operation Income and Costs
Presented in RMB
Current amount Amount of previous period
Items
Income Costs Income Costs
Main business 131280409.37 106078736.50 524099615.63 442138382.34
Other business 2944710.06 1353721.01 6788105.05 2659259.76
Total 134225119.43 107432457.51 530887720.68 444797642.10
Breakdown of operating income and operating costs:
Information related to performance obligations:
The The type of
The nature of Company quality
The time to the goods Whether it is assumes the assurance
Important
fulfill the that the the main money that is offered by
Items payment
performance company responsible expected to the company
terms
obligation undertakes to person be refunded and the
transfer to the associated
Customer obligations
Other notes:
The Company's real estate sales business is a performance obligation to be performed at a certain point in time.The realization of sales revenue shall be recognized when the development product has been completed and
accepted the sales contract has been signed and the obligations stipulated in the contract have been fulfilled the
notice or announcement of occupancy has been issued to the owner the property has been actually delivered to
the owner or the delivery date agreed in the contract has expired the full amount of the house has been
collected and the relevant costs that have been incurred or will be incurred can be reliably measured.
110ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Information related to the transaction price allocated to the remaining performance obligations:
At the end of the reporting period the amount of revenue corresponding to the performance obligations that
have been signed but not yet performed or not yet completed is RMB 1535320476.56 yuan Among them
RMB 1117009557.57 yuan is expected to be recognized as revenue in 2024 RMB 392513435.90 is expected
to be recognized as revenue in the year 2025 and RMB 25797483.09 yuan is expected to be recognized as
revenue in the year 2026 and subsequent years.Note: The company complies with the disclosure requirements of "Shenzhen Stock Exchange Industry
Information Disclosure Guidelines No. 3-Listed Companies Engaged in Real Estate Business"
Information of the top five projects that the revenue recognized during the reporting period:
Presented in RMB
No. Project Income amount
1 TianYue Bay No.2 6204257.81
2 TianYue Bay No.1 4023661.92
3 Shenfang Square 3606476.19
4 Shenfang CuiLin Community 2040657.14
33. Taxes and surcharges
Presented in RMB
Item Current amount Amount of previous period
Urban maintenance and
399425.47569808.42
construction tax
Education surcharge 148368.34 244769.19
Property tax 4442905.62 797547.13
Land use tax 269300.75 271394.26
Vehicle and vessel usage tax 840.00
Stamp duty 126022.39 48899.52
Land appreciation tax 1445480.40 59792949.35
Local education surcharge 99335.89 162868.57
Embankment protection fees 661.27 7791.12
Total 6931500.13 61896867.56
Other notes:
34. General and administrative expenses
Presented in RMB
Item Current amount Amount of previous period
Employee benefits 20470686.17 15886780.81
Depreciation 1290494.93 1257650.48
Entertainment expenses 139543.96 848919.03
Professional fee 1495211.60 1008889.63
Travel expense 11737.18 65435.94
Office expenses 378111.89 648239.75
Maintenance expenses 84456.19 128922.09
Utilities 135999.59 137684.88
Amortization 225150.98 251350.50
Others 2840311.98 3219326.34
Total 27071704.47 23453199.45
Other notes
111ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
35. Selling and distribution expense
Presented in RMB
Items Current amount Amount of previous period
Employee benefits 1707893.58 1571290.26
Advertising expenses 1286084.16 2202118.31
Entertainment expenses 50519.00 218421.79
Commissions 410737.19 1629485.30
Others 1990505.15 3169324.52
Total 5445739.08 8790640.18
Other notes:
36. Financial expense
Presented in RMB
Items Current amount Amount of previous period
Interest expense 3071652.11 1609531.95
Less: Interest income 4839207.82 716366.12
Less: capitalized interest 2183480.34 1609531.95
Exchange losses/-gains -1288116.33 11609.26
Less: Exchange losses and gains
capitalized
Others 84134.44 92489.15
Total -5155017.94 -612267.71
Other notes
37. Other Income
Presented in RMB
Items (Source of other income) Current amount Amount of previous period
Refund of procedure fee of
79383.5568364.83
personal income tax
VAT deduction 54434.68
Stable Job Subsidy 1000.00 932.80
Others 2627.57
38. Income from changes in fair value
Presented in RMB
The source of the fair value change
Current amount Amount of previous period
income
Trading financial assets 9721583.19 3477115.56
Total 9721583.19 3477115.56
Other notes:
39. Investment Income
Presented in RMB
Item Current amount Amount of previous period
Investment income from holding
161491.79
held-for-trading financial assets
Dividend income from other equity
instrument investments during the 777600.00
holding period
112ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Other 1644822.69
Total 777600.00 1806314.48
Other notes
40. Credit impairment loss
Presented in RMB
Items Current amount Amount of previous period
Bad debt losses on notes
80850.00
receivables
Bad debt losses on accounts
-29019.90440326.78
receivables
Bad debt losses on other
187.948000.00
receivables
Impairment loss on contract assets
Total -28831.96 529176.78
Other notes
41. Impairment loss of assets
Presented in RMB
Items Current amount Amount of previous period
Impairment loss of assets 652630.46
Total 652630.46
Other notes:
42. Income form disposal of assets
Presented in RMB
The source of the proceeds from
Current amount Amount of previous period
the disposal of the asset
Disposal of fixed assets 223872.34
43. Non-operating income
Presented in RMB
The amount included in
Amount of previous the non-recurring profit
Items Current amount
period or loss for the current
period
Penalty/Default Income 987728.59 7202.16
Income from insurance
200800.00
claims
Others 10274.56
Total 1188528.59 17476.72
Other notes:
44. Non-operating expenses
Presented in RMB
Amount counted to the
Amount of previous
Items Current amount current non-operating
period
gain and loss
113ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Donations provided 30000.00 30000.00
Others 183.63 21480.63
Total 30183.63 51480.63
Other notes:
45. Income tax expense
(1) List of income tax expense
Presented in RMB
Items Current amount Amount of previous period
Current tax expense for the year 306836.88 -29856527.82
Deferred tax expense -88329.52 27275898.77
Total 218507.36 -2580629.05
(2) Reconciliation between income tax expenses and accounting profit is as follows:
Presented in RMB
Item Current amount
Profits/losses before tax 5086946.29
Expected income tax expenses at applicable tax rate 1271736.57
Impact of different tax rates applied to certain subsidiaries 76653.96
Adjustment of income tax for the current period of the previous
1276405.27
period
Impact of tax-free income -2624795.80
Income tax expenses 218507.36
Other notes
46. Other comprehensive income
Refer to Note for details.
47. Cash Flow Statement
(1) Cash related to operating activities
Other cash received in connection with operating activities
Presented in RMB
Item Current amount Amount of previous period
Interest income 4719216.02 451599.51
Current payments and others 44736369.97 73770016.81
Total 49455585.99 74221616.32
Description of other cash received in connection with operating activities:
Other cash paid in connection with operating activities
Presented in RMB
Items Current amount Amount of previous period
114ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Fees 84134.44 92489.15
Pay the cash fee 21499935.35 8490955.36
Current payments and others 47211647.35 132776565.29
Total 68795717.14 141360009.80
Notes:
(2) Cash related to other investing activities
Other cash received in connection with investing activities
Presented in RMB
Items Current amount Amount of previous period
Redemption of money market
136800000.00
funds
Total 136800000.00
Notes:
Other cash paid in connection with investment activities
Presented in RMB
Items Current amount Amount of previous period
Purchase of money market funds 40000000.00
Total 40000000.00
Notes:
(3) Cash related to other financing activities
Other cash received in connection with financing activities
Presented in RMB
Items Current amount Amount of previous period
Notes:
Other cash paid in connection with financing activities
Presented in RMB
Items Current amount Amount of previous period
Notes:
(4) Statement of cash flows on a net basis
Relevant factual The basis for the use of
Items Financial Implications
circumstances net presentation
115ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
(5) Significant activities and financial impacts that do not involve current cash receipts and expenditures
but affect the financial position of the enterprise or may affect the cash flow of the enterprise in the
future
48. Supplementary information of the cash flow statement
(1) Supplementary information of the cash flow statement
Presented in RMB
Amount of previous
Supplementary information Current amount
period
1. Adjust net profit to cash flow from operating activities:
Net profit 4868438.93 -38658122.97
Add: Provisions for impairment of assets 623798.49 529176.78
Depreciation of Fixed Assets Depreciation of
Investment Real Estate
13966419.5114214001.61
Depreciation of Oil and Gas Assets Depreciation of
Productive Biological Assets
Depreciation of Right-of-use Assets 66427.62 66427.62
Amortization of intangible assets
Amortization of long-term deferred expenses 246606.72 367035.40
Loss on disposal of fixed assets intangible assets and
-223872.34
other long-term assets (marked with "-" for gains)
Loss on the scrapping of fixed assets (marked with "-" for
-2009.21
income)
Loss from changes in fair value (marked with "-" for
-9721583.19-3477115.56
earnings)
Financial expenses (revenue marked with "-") 399944.56 11609.26
Loss on investment (marked with "-" for income) -777600.00 -1806314.48
Deferred tax assets decreased (marked with "-" for
-88329.52-29856527.82
increase)
Deferred tax liability increased (marked with "-" for
decrease)
Decrease in stock (marked with "-" for increase) -104561681.25 -17204930.10
Decrease of operating receivable items (marked with "-"
-86943818.20-28003759.61
for increase)
Increase in operational payable items (marked with "-" for
73695716.61-88320418.96
decrease)
Other
Net cash flow from operating activities -108449532.06 -192140948.04
2. Major investment and financing activities that do not
involve cash receipts and expenditures:
Debt to capital
A convertible corporate bond maturing within one year
Leasing of fixed assets through financing
3. Net changes in cash and cash equivalents:
Ending balance of cash 607550724.73 174781114.58
Minus: Opening balance of cash 859146413.35 190365069.48
116ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Plus: Ending balance of cash equivalents
Minus: Beginning balance of cash equivalents
Net increase in cash and cash equivalents -251595688.62 -15583954.90
(2) Composition of cash and cash equivalents
Presented in RMB
Items Closing balance Opening balance
Cash 607550724.73 859146413.35
Including: cash at bank and on
12863.3618414.04
hand
A bank deposit that can be
569636355.28829127999.31
used for payment at any time
Funds in other currencies
that can be used for payment at any 37901506.09 30000000.00
time
Cash and cash equivalents at 30
607550724.73859146413.35
June 2024
Other notes:
49. Notes for items in the statement of changes in owners' equity
Notes to the name of “Other” of ending balance of the same period of last year adjusted and the amount
adjusted:
50. Foreign currency monetary items
(1) Foreign currency monetary items
Presented in RMB
Ending Foreign Currency Balance converted into
Item Discount rate
Balance RMB at the end
Monetary fund 5123125.64
Including: USD 48375.41 7.1268 344761.87
EUR
HKD 5235530.27 0.91268 4778363.77
Accounts receivable 177338.59
Including: USD 24883.34 7.1268 177338.59
EUR
HKD
Other receivables 18270247.40
Including: USD
EUR
HKD 20018240.13 0.91268 18270247.40
Other payables 8587793.10
Including: USD 722044.70 7.1268 5145868.17
EUR
HKD 3771228.62 0.91268 3441924.94
117ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Long-term loans
Including: USD
EUR
HKD
Other notes:
(2) Note to overseas operating entities including important overseas operating entities which should be
disclosed about its principal business place function currency for bookkeeping and basis for the choice.In case of any change in function currency the cause should be disclosed.□ Applicable √ Not Applicable
VIII. Change of consolidation scope
1. Business combinations involving enterprises not under common control
(1) Business combinations involving enterprises not under common control occurred during the
Reporting Period
Presented in RMB
Income Net
of profits of
Recogniti
Time and acquiree acquiree
Cost of Proportio Way to on basis
Name of place of Purchase from the from the
gaining n of gain the of
acquiree gaining date purchase purchase
the equity equity equity purchase
the equity date to date to
date
period- period-
end end
Other notes:
(2) Acquisition cost and goodwill
Presented in RMB
Acquisition cost
--Cash
--Fair value of non-cash assets
--Fair value of debts issued or undertaken
--Fair value of equity securities issued
--Fair value of contingent consideration
--Fair value of equities held before the purchase date
on the purchase date
--Other
Total acquisition cost
Less: fair value of identifiable net assets acquired
The amount of goodwill/acquisition cost less than the
fair value share of identifiable net assets obtained
Note to determination method of the fair value of the acquisition cost consideration and changes:
The main reasons for the formation of large-value goodwill:
118ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Other notes:
(3) Identifiable assets and liabilities of the acquiree at the acquisition date
Presented in RMB
Fair value on purchase date Carrying value on purchase date
Assets:
Monetary assets
Accounts receivable
Inventories
Fixed assets
Intangible assets
Liabilities:
Borrowings
Accounts payable
Deferred income tax liabilities
Net assets
Less: Non-controlling interests
Net assets acquired
The determination method of the fair value of identifiable assets and liabilities:
Contingent liabilities of acquirees undertaken in the business combination:
Other notes:
(4) Gain or loss from remeasurement of equity interests held prior to acquisition date to fair value
Whether there are multiple transactions to achieve the business merger step by step and gain control during the
reporting period
□ Yes √ No
(5) If it is impossible to reasonably determine the merger consideration or the fair value of the assets and
liabilities recognized by the purchaser on the purchase date or at the end of the current period the Group
shall disclose the fact and reasons.
(6) Other Note
2. Business combinations involving enterprises under common control
(1) Business combinations involving enterprises under common control during the period
Presented in RMB
Net
Income Net
profits Income
from the profits of
from the of the
Recogniti period- the
period- acquiree
Proportio on basis begin to acquiree
Combine Combinat begin to during
n of the Basis of the during
d party ion date the the period
equity combinati combinati the period
combinati of
on date on date of of
on date of comparis
the comparis
the on
acquiree on
acquiree
Other notes:
119ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
(2) Combination cost
Presented in RMB
Combination cost
--Cash
--Carrying value of non-cash assets
--Carrying value of issued or assumed debts
--Carrying value of issued equity securities
--Contingent consideration
Explanation of contingent consideration and its variation:
Other notes:
(3) Book value of merged party’s assets and liabilities in combination date
Presented in RMB
Combination date Period-end of the last period
Assets:
Monetary assets
Receivables
Inventories
Fixed assets
Intangible assets
Liabilities:
Loans
Payables
Net assets
Less: Non-controlling interests
Net assets acquired
Contingent liabilities of the combined party undertaken in the business combination:
Other notes:
3. Reverse buying
Basic information of trading the basis of transactions constitutes counter purchase the retain assets liabilities
of the listed companies whether constituted a business and its basis the determination of the combination costs
the amount and calculation of adjusted rights and interests in accordance with the equity transaction process.
4. Disposal of subsidiaries
Whether subsidiaries reduced due to single disposal until loss of control
□ Yes √ No
Whether exists multiple transactions to dispose of the equity step by step to the loss of control and the reduction
of the subsidiary
□ Yes √ No
5. Other reason for change of consolidation scope
Describe other changes in the consolidation scope (e.g. new subsidiaries liquidation of subsidiaries etc.) and
relevant situations:
The scope of consolidation was reduced.
120ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Equity Net profit from the beginning
Name of the Equity disposal Net assets on disposal time of the period to the date of
Subsidiary method disposal date
point disposal
Xinfeng Real Estate Liquidation January of 692.2 thousand
0
Company Limited write-off 2024 yuan
6. Others
IX. Interest in other entities
1. Interests in subsidiaries
(1) Composition of the Group
Presented in RMB
Main Holding proportion (%)
Subsidia Registered Place of Business Acquisition
operating
ries capital registration nature Direct Indirect method
place
Shenzhen
SPG
30000000 Establishmen
Longgang Shenzhen Shenzhen Real estate 95.00% 5.00%.00 t
Developme
nt Co. Ltd.Great Wall
Estate USD Establishmen
U.S. U.S. Real estate 70.00%
Company 500000.00 t
Inc.Shenzhen
Petrel 30000000 Hotel Establishmen
Shenzhen Shenzhen 68.10% 31.90%
Hotel Co. .00 services t
Ltd.Shenzhen
Zhentong 10000000 Constructio Establishmen
Shenzhen Shenzhen 73.00% 27.00%
Engineerin .00 n t
g Co. Ltd.Shenzhen
Huazhan
Constructio 8000000. Constructio Establishmen
Shenzhen Shenzhen 75.00% 25.00%
n 00 n t
Supervisio
n Co. Ltd.Shenzhen
Lianhua 10000000 Constructio Establishmen
Shenzhen Shenzhen 95.00% 5.00%
Enterprise .00 n t
Co. Ltd.Investment
Xinfeng
TWD 5.00 Hong Kong Hong Kong and Establishmen
Enterprise 100.00%
million SAR SAR manageme t
Co. Ltd.nt
Shenzhen
Import and
SPG Free 5000000. Establishmen
Shenzhen Shenzhen export 95.00% 5.00%
Trading 00 t
trade
Co. Ltd.Shenzhen 10000000 Shenzhen Shenzhen Investment 90.00% 10.00% Establishmen
121ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
SPG .00 t
Investment
Co. Ltd.Beijing
Xinfeng
Real Estate
USD 10.00 Establishmen
Manageme Beijing Beijing Real estate 75.00% 25.00%
million t
nt &
Developme
nt Co. Ltd.Guangdong
Business
Jianbang
combination
Group 2800000.Huizhou Huizhou Real estate 51.00% not under
(Huiyang) 00
common
Industrial
control
Co. Ltd.Shenzhen
SPG
Chuanqi Establishmen
3000.00 Shenzhen Shenzhen Real estate 100.00%
Real Estate t
Developme
nt Co. Ltd.Note to shareholding ratio is different from the voting ratio in subsidiaries:
The basis of holding half or less of the voting rights but still controlling the investee and holding more than half
of the voting rights but not controlling the investee:
The basis for controlling significant structured entities in the scope of merger:
The basis for determining whether a company is an agent or a principal:
Other notes:
The Company has brought the following 3 subsidiaries which have been suspended for a long time and whose
business license has been revoked but not canceled into the consolidation scope: Guangzhou Huangpu Xincun
Real Estate Development Co. Ltd. Xinfeng Real Estate Development and Construction (Wuhan) Co. Ltd. and
Beijing Xinfeng Real Estate Development & Management Co. Ltd. The above subsidiaries have been presented
as discontinued operations with full provision for impairment on their creditor’s right to debtors beyond the
consolidation scope of the Company.
(2) Significant not wholly-owned subsidiaries
Presented in RMB
Holding proportion of Non-controlling Dividend declared to Closing balance of
Subsidiaries non-controlling shareholders’ profit or non-controlling non-controlling
shareholders loss shareholders interest
Great Wall Estate
30.00%-152313.68-22962253.30
Company Inc.Xinfeng Investment
45.00%0.00-116179868.81
Co. Ltd.Baiwei Real Estate
20.00%0.00-3892111.41
Co. Ltd.Guangdong
Jianbang Group
49.00%-703606.78227238723.28
(Huiyang)
Industrial Co. Ltd.Note to shareholding ratio of minority shareholder is different from the voting ratio:
Other notes:
122ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
(3) Key financial information about material non-wholly owned subsidiaries
Presented in RMB
Closing balance Opening balance
Subsi Non- Non-
diarie Non- Current Total Non- Current Total Current Total current Current Total current
s current liabilitie liabilitie current liabilitie liabilitieassets assets liabilitie assets assets liabilitie
assets s s assets s s
s s
Great
Wall
19642015112411241956199611171117
Estate 5118 3953
1273.3133.881588159160.4537.91859185
Comp 60.82 77.20
17999.999.9913331.061.06
any
Inc.Xinfe
ng
164816842601260125822582
Invest 3601 6978 3601 1058
020.8037.71123112383378337
ment 6.90 6.71 6.90 03.61
550.950.952.852.85
Co.Ltd.Baiw
ei
3315331532923292
Real 1068. 1068. 1061. 1061.
8116.8116.0988.0988.
Estate 77 77 18 18
63639191
Co.Ltd.Guan
gdong
Jianb
ang
Grou
1522678615291556155615257070153215571557
p
8796931.06665535453544665465.1537097009700
(Huiy
24.93956.0293.8893.8847.38712.5518.2018.20
ang)
Indust
rial
Co.Ltd.Presented in RMB
Current amount Amount of previous period
Subsidiari Cash flows Cash flows Total Total
es Operating from Operating from Net profit comprehens Net profit comprehens
revenue operating revenue operating
ive income ive income
activities activities
Great Wall
----
Estate 346981.6 169779.1 340294.1 -
169152.2169152.2142447.8142447.8
Company 9 7 2 30443.57
7733
Inc.Xinfeng
Investmen 0.00 0.00 0.00 0.00 0.00 -574.87 -574.87 0.00
t Co. Ltd.Baiwei
Real
0.000.000.000.000.00-992.71-992.710.00
Estate Co.Ltd.
123ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Guangdon
g Jianbang
------
Group
0.001435932143593241949410.00407178540717851476232
(Huiyang).21.21.00.25.258.06
Industrial
Co. Ltd.Other notes:
(4) Material restriction on the use of the Group’s assets and the settlement of the Group’s liabilities
(5) Financial support or other support provided to structured entities included in the scope of the
consolidated financial statements
Other notes:
2. Transactions that cause changes in the Group’s interests in subsidiaries that do not result in loss of
control
(1) Changes in the Group’s interests in subsidiaries:
(2) Impact from transactions with non-controlling interests and equity attributable to the owners of the
Group:
Presented in RMB
Purchase cost/disposal consideration
--Cash
--Fair value of non-cash assets
Total of purchase cost /disposal consideration
Less: Subsidiary net assets proportion calculated by
share proportion obtained/disposal
Difference
Of which: Adjustment of capital reserves
Surplus reserves adjustments
Retained profits adjustments
Other notes
3. Interests in joint ventures or associates
(1) Material joint ventures or associates
Shareholding percentage (%) Accounting
treatment of
Main the
Registration Nature of
Name operating investment to
place business Directly Indirectly
place joint venture
or associated
enterprise
Notes to holding proportion of joint venture or associated enterprise different from voting proportion:
Basis of holding less than 20% of the voting rights but has a significant impact or holding 20% or more voting
rights but does not have a significant impact:
124ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
(2) Key financial information of material joint ventures:
Presented in RMB
Ending balance/amount incurred in Opening balance/amount incurred
the reporting period in the previous period
Current assets
Of which: cash and cash
equivalents
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Equity of non-controlling interests
Equity attributable To shareholders
of the Company as the parent
Portion of net assets calculated
according to proportion of
shareholdings
Adjusted
-Goodwill
-Unrealized profits of internal
transactions
-Others
Carrying value of equity
investment to joint ventures
Fair value of equity investments of
joint ventures with public offer
Operating revenue
Finance expense
Income tax expense
Net profit
Net profit from discontinued
operations
Other comprehensive income
Total comprehensive income
Dividends received from joint
ventures in the Reporting Period
Other notes
(3) Key financial information of material associates:
Presented in RMB
Ending balance/amount incurred in Opening balance/amount incurred
the reporting period in the previous period
Current assets
125ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Equity of non-controlling interests
Equity attributable To shareholders
of the Company as the parent
Portion of net assets calculated
according to proportion of
shareholdings
Adjusted
-Goodwill
-Unrealized profits of internal
transactions
-Others
Carrying value of equity
investment to associated
enterprises
Fair value of equity investments of
associated enterprises with public
offer
Operating revenue
Net profit
Net profit from discontinued
operations
Other comprehensive income
Total comprehensive income
Dividends received from
associated enterprises in the
Reporting Period
Other notes
(4) Summarized financial information of immaterial joint ventures and associates:
Presented in RMB
Opening balance/Amount of
Closing balance/ Current amount
previous period
Joint ventures:
The total number of the following
items based on shareholding ratio
Associates:
The total number of the following
items based on shareholding ratio
Other notes
126ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
(5) Material restrictions on transfers of funds from investees to the Group
(6) Excess loss from joint ventures or associates
Presented in RMB
Accumulated Unrecognized loss (or Accumulated
Name of the joint ventures
unrecognized share of net profit) for the unrecognized
or associates
loss in prior periods reporting period loss as at 30 Jun. 2024
Shenzhen Xinfeng Real
2217955.892217955.89
Estate Consultants Co. Ltd
Other notes
(7) Unrecognized commitments in connection with its investment in joint ventures
(8) Contingent liabilities in connection with its investment in joint ventures or associates
4. Material joint operations
Main operating Registration Nature of Proportion /Share portion
Name
place place business Directly Indirectly
Notes to holding proportion or share portion in common operation different from voting proportion:
For common operation as a single entity basis of classifying as common operation:
Other notes
5. Interests and interests in structured entities not included in the scope of consolidated financial
statements
Note to structured entities not included in the scope of consolidated financial statements:
6. Other
X.Government grants
1. Government subsidies recognized at the end of the reporting period on the basis of receivables
□Applicable □ Inapplicable
The reason for not receiving the estimated amount of government assistance at the expected point in time:
□Applicable □ Inapplicable
2. Liabilities involving government grants
□Applicable □ Inapplicable
3. Government grants included into profit or loss
□Applicable □ Inapplicable
Presented in RMB
Ledger accounts Current amount Amount of previous period
The amount of government
subsidies included in the profit or 83011.12 123732.31
loss for the current period
Other notes:
127ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
XI. Risks related to financial instruments
1. Types of risks arising from financial instruments
In risk management the Company aims to seek the appropriate balance between the risks and benefits from its
use of financial instruments and to mitigate the adverse effects that the risks of financial instruments have on the
Company’s financial performance so as to maximize the profits of shareholders and other equity investors.Based on such risk management objectives the Company’s risk management policies are established to identify
and analyze the risks faced by the Company to set appropriate risk limits and controls and to monitor risks and
adherence to limits on a timely and reliable basis.The Company has exposure to the following risks from its use of financial instruments which mainly include:
credit risk liquidity risk and market risk. The Management has deliberated and approved policies concerning
such risks and details are:
(I) Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by
failing to discharge an obligation.
(1) Credit risk management practice
1) Evaluation method of credit risk
At each balance sheet date the Company assesses whether the credit risk on a financial instrument has increased
significantly since initial recognition. When assessing whether the credit risk has increased significantly since
initial recognition the Company takes into account reasonable and supportable information which is available
without undue cost or effort including qualitative and quantitative analysis based on historical data external
credit risk rating and forward-looking information. The Company determines the changes in default risk of
financial instruments during the estimated lifetime through comparison of the default risk at the balance sheet date
and the initial recognition date on an individual basis or a collective basis.The Company considers the credit risk on a financial instrument has increased significantly when one or more of
the following qualitative and quantitative standards are met:
A. Quantitative standard mainly relates to the scenario in which at the balance sheet date the probability of
default in the remaining lifetime has risen by more than a certain percentage compared with the initial recognition;
B. Qualitative standard mainly relates to significant adverse changes in the debtor’s operation or financial position
present or expected changes in technology market economy or legal environment that will have significant
adverse impact on the debtor’s repayment ability;
2) Definition of default and credit-impaired assets
A financial instrument is defined as defaulted when one or more following events have occurred of which the
standard is consistent with that for credit-impairment:
A. significant financial difficulty of the debtor;
128ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
B. a breach of binding clause of contract;
C. it is very likely that the debtor will enter bankruptcy or other financial reorganization;
D. the creditor of the debtor for economic or contractual reasons relating to the debtor’s financial difficulty
having granted to the debtor a concession(s) that the creditor would not otherwise consider.
(2) Measurement of expected credit losses
The key factors in the measurement of expected credit loss include the probability of default loss given default
and exposure to default risk. The Company develops a model of the probability of default loss given default and
exposure to default risk on the basis of quantitative analysis of historical data (e.g. counterparty rating guarantee
measures and collateral type payment method etc.) and forward-looking information.
(3) Exposure to credit risk and concentration of credit risk
The Company’s credit risk is primarily attributable to cash and bank balances and receivables. In order to control
such risks the Company has taken the following measures:
1) Cash and bank balances
The Company deposits its bank balances and other cash and bank balances in financial institutions with relatively
high credit levels hence its credit risk is relatively low.
2) Receivables and contract assets
The Company performs credit assessment on customers using credit settlement on a regular basis. The Company
selects credible and well-reputed customers based on credit assessment result and conducts ongoing monitoring
on balance of receivables to avoid significant risks in bad debts.As the Company’s credit risks fall into several business partners and customers the Company manages credit risk
aggregated by customers. As of 30 June 2024 the Company has certain concentration of credit risk and 37.23%
(December 31 2023: 36.46%) of the total accounts receivable and contract assets was due from the five largest
customers of the Company. The Company held no collateral or other credit enhancement on balance of receivables
or contract assets.The maximum amount of exposure to credit risk of the Company is the carrying amount of each financial asset at
the balance sheet.(II) Liquidity risk
Liquidity risk is the risk that the Company may encounter deficiency of funds in meeting obligations associated
with cash or other financial assets settlement which is possibly attributable to failure in selling financial assets at
fair value on a timely basis or failure in collecting liabilities from counterparties of contracts or early redemption
of debts or failure in achieving estimated cash flows.
129ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
In order to control such risk the Company comprehensively utilizes financing tools such as notes settlement bank
borrowings etc. and adopts long-term and short-term financing methods to optimize financing structures and
finally maintains a balance between financing sustainability and flexibility. The Company has obtained credit limit
from several commercial banks to meet working capital requirements and expenditures.
(1) Financial liabilities classified based on remaining time period till maturity
Closing balance
Items Contract amount not yet
Book value Within 1 year 1-3 years Over 3 years
discounted
Short-term borrowings 10310396.09 10371534.34 10371534.34
Accounts payable 403762092.10 403762092.10 403762092.10
Other payables 542929961.14 542929961.14 542929961.14
Non-current liabilities
50316649.6654669326.6754669326.67
due within one year
Other current liabilities 132138332.74 132138332.74 132138332.74
Long-term borrowings 62336264.42 68739929.06 4794059.25 63945869.81
Subtotal 1201793696.15 1212611176.04 1143871246.99 4794059.25 63945869.81
(Continued)
31 December 2023
Items Contract amount not yet
Book value Within 1 year 1-3 years Over 3 years
discounted
Short-term borrowings 3550000.00 3683125.00 3683125.00
Accounts payable 443259768.78 443259768.78 443259768.78
Other payables 554469229.59 554469229.59 554469229.59
Non-current liabilities
34056347.9341741101.0341741101.03
due within one year
Other current liabilities 20790361.58 20790361.58 20790361.58
Long-term borrowings 179431851.02 187773026.94 122834289.80 6 4938737.14
Subtotal 1235557558.90 1251716612.92 1 063943585.98 1 22834289.80 6 4938737.14
(III) Market risk
Market risk is the risk that the Company may encounter fluctuation in fair value or future cash flows of financial
instruments due to changes in market price. Market risk mainly includes interest risk and foreign currency risk.
(1) Interest risk
Interest risk is the risk that an enterprise may encounter fluctuation in fair value or future cash flows of financial
instruments due to changes in market interest rates. The Company’s fair value interest risks arise from fixed-rate
financial instruments while the cash flow interest risks arise from floating-rate financial instruments. The
Company determines the proportion of fixed-rate financial instruments and floating-rate financial instruments
based on the market environment and maintains a proper financial instruments portfolio through regular review
and monitoring. The Company’s interest risk in cash flows relates mainly to bank borrowings with floating
interest rate.
130ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
As of 30 June 2024 balance of borrowings with interest accrued at floating interest rate totaled 62336264.42
yuan (December 31 2023: 0 yuan). If interest rates had been 50 basis points higher/lower and all other variables
were held constant the Company’s gross profit and equity will not be significantly affected.
(2) Foreign currency risk
Foreign currency risk is the risk arising from changes in fair value or future cash flows of financial instrument
resulted from changes in exchange rate. The Company’s foreign currency risk relates mainly to foreign currency
monetary assets and liabilities. When short-term imbalance occurred to foreign currency assets and liabilities the
Company may trade foreign currency at market exchange rate when necessary in order to maintain the net risk
exposure within an acceptable level.The exchange rate risk mainly refers to the impact of foreign exchange rate fluctuations on the financial condition
and cash flow of the Company. Except for subsidiaries established in Hong Kong SAR that hold assets
denominated in Hong Kong dollars the Company only engages in small-scale Hong Kong market investment
business. The proportion of foreign currency assets and liabilities held by the Company to the overall assets and
liabilities is insignificant hence the Company considers that the exposure to exchange rate risk is not material.For details of monetary assets and liabilities denominated in foreign currencies at the end of the period please
refer to '70. Monetary assets and liabilities denominated in foreign currencies’ in '(Ⅶ) Notes to Consolidated
Financial Statements’ of this financial report.XII.Fair Value
1. Items and amounts measured at fair value at the end of reporting period
Presented in RMB
Amounts at 30 June 2024
Items The first level of The second level of The third level of
fair value fair value fair value Total
measurement measurement measurement
I.Recurring fair
--------
value measurement
1. Financial assets
at fair value through 929061785.11 929061785.11
profit or loss
Monetary fund 929061785.11 929061785.11
2.Financial assets
designated at fair
15060340.1315060340.13
value through profit
or loss
Investments in
other equity 15060340.13 15060340.13
instrument
Total assets
measured at fair
929061785.1115060340.13944122125.24
value on a recurring
basis
131ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
II. Non-recurring
fair value -- -- -- --
measurements
2. Basis for determining the market price of the items measured based on the continuous and non -
continuous first level fair value
The Company's financial assets held for trading are currency fund products purchased from China Construction
Bank Corporation for which unadjusted quoted prices in active markets for identical assets were available at
the balance sheet date.
3. Items measured based on the continuous or uncontinuous 2nd level fair value valuation technique as
used nature of important parameters and quantitative information
None.
4. Items measured based on the continuous or uncontinuous 3rd level fair value valuation technique as
used nature of important parameters and quantitative information
None.
5. Items measured based on the continuous 3rd level fair value sensitivity analysis on adjusted
information and unobservable parameters between the book value at beginning and end of the period
For receivable financing not traded in an active market which has a short remaining term and Book value
approximates fair value Book value is used to determine its fair value. For investments in other equity
instruments that are not traded in an active market where the amount of the investment is small and the change
in the net assets of the investee is small and the Book value approximates the fair value the Book value is used
to determine its fair value.
6. In case items measured based on fair value are converted between different levels incurred in the
current period state the cause of conversion and determine conversion time point
None.
7. Change of valuation technique incurred in the current period and cause of such change
None.
8. the carrying value of other financial assets and financial liabilities which are not measured at fair
value varies
The Company's financial assets and financial liabilities that are measured at amortized cost consist mainly of
cash funds notes receivable accounts receivable other receivables short-term borrowings accounts payable
other payables long-term borrowings and lease liabilities.The difference between the book value and the fair value of the Company's financial assets and financial
liabilities not measured at fair value is insignificant.
9. Other
None.
132ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
XIII.Related parties and related party transactions
1. Information about the parent of the Group
Shareholdin
Percentage of
Registrati Registered g
Parent company name Business nature voting
on place capital percentage
rights %
%
Shenzhen Shenzhen Shenzhen Shenzhen
Shenzhen Investment Investmen Shenzhen Investment Investment Investment Investment
Holdings Co. Ltd. t Holdings Holdings Co. Ltd. Holdings Holdings Holdings Co.Co. Ltd. Co. Ltd. Co. Ltd. Ltd.Note:
The ultimate controlling party of the Group is State-owned Assets Supervision and Management Commission of
Shenzhen Municipal People’s Government.Other notes:
2. Information about the subsidiaries of the Group
Please refer to Note X for the description of the Company's subsidiaries in details.
3. Information about joint ventures and associates of the Group
Please refer to Note X for the description of the Company's significant joint ventures or associates in details.Joint ventures and associates that have related party transactions with the Group during this year or the previous
year are as follows:
Name of joint ventures or associates Relationship with the Group
Other notes:
4. Information on other related parties
Related parties Relationships with the Company
Shenzhen Jian’an (Group) Co. Ltd. Controlling subsidiary of the parent company
Shenzhen Oriental New World Department Store Co.Investee
Ltd.Revoked but not canceled controlling subsidiary not
Shenzhen Shenxi Building Decoration Co. Ltd.brought into the consolidation scope
Shenzhen Zhentong New Electromechanical Industrial Long-term discontinued controlling subsidiary not
Development Co. Ltd. brought into the consolidation scope
Revoked but not canceled controlling subsidiary not
Shenzhen Nanyang Hotel Co. Ltd.brought into the consolidation scope
Shenzhen Real Estate Electromechanical Management Revoked but not canceled controlling subsidiary not
Co. Ltd. brought into the consolidation scope
Shenzhen Longgang Henggang Huagang Industrial Revoked but not canceled controlling subsidiary not
Co. Ltd. brought into the consolidation scope
Guangzhou Bopi Enterprise Management Consulting
Shareholder of subsidiaries
Co. Ltd.Shenzhen Property Management Co. Ltd. Controlling subsidiary of the parent company
Guoren Property Insurance Co. Ltd. Controlling subsidiary of the parent company
Shenzhen Water Planning and Design Institute Co. Controlling subsidiary of the parent company
133ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Ltd.Shenzhen General Institute of Architectural Design
Controlling subsidiary of the parent company
and Research Co. Ltd.Shenzhen SPG Property Cleaning Co. Ltd. Controlling subsidiary of the parent company
Shenzhen Property Management Co. Ltd. Shantou
Controlling subsidiary of the parent company
Branch
Shenzhen Guomao Property Management Co. Ltd. Controlling subsidiary of the parent company
Shenzhen Xinfeng Real Estate Consulting Co. Ltd. Investee
Guangdong Huizhou Luofushan Mineral Water
Investee
Beverage Co. Ltd.Shenzhen Runhua Automobile Trading Co. Ltd. Investee
Canada Great Wall (Vancouver) Co. Ltd. Investee
Australia Berkton Property Limited Investee
Paklid Limited Investee
Shenzhen Shenfang Department Store Co. Ltd. Investee
Shenzhen Ronghua Electromechanical Engineering
Investee
Co. Ltd.Xi’an Xinfeng Property Trading Co. Ltd. Investee
Fengkai Lianfeng Cement Manufacturing Co. Ltd. Investee
Beijing SPG Property Management Co. Ltd. Investee
Other notes
5. Related party transactions
(1) Purchase and sale of goods rendering and receiving of services
The list of purchase of goods and receiving of services
Presented in RMB
Amount of Whether the
Related Content of Amount of
Current amount transactions transaction limit
parties transactions previous period
approved is exceeded
Shenzhen
Property
Property
Management 1180561.20 No 1049250.38
services
Co. Ltd.Shantou Branch
Shenzhen
Property Property
263926.72 No 352967.09
Management services
Co. Ltd.Shenzhen SPG
Property Cleaning
0.00 No 22924.56
Cleaning Co. services
Ltd.Guoren
Property Insurance
80202.94 No 80263.00
Insurance Co. services
Ltd.The list of sale of goods and rendering of services.Presented in RMB
Amount of previous
Related parties Content of transactions Current amount
period
Guoren Property Leasing services 421519.98 421519.98
134ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Insurance Co. Ltd.Shenzhen Property
Leasing services 2485951.92 2678833.32
Management Co. Ltd.Shenzhen SPG Property
Leasing services 19999.98
Cleaning Co. Ltd.Note:
(2) Affiliated Management/Contracting and Delegated Management/Contracting Out
The Company's fiduciary/contracting schedule:
Presented in RMB
Type of Inception Maturity date Basis for
Trust/contrac
Name of Name of ting revenue assets date of of pricing of
commissione trustee/sub- hosting/contr recognized in
entrusted/con trust/contract trust/contract
r/contractor contractor acting the reporting
tracted ing ing
income period
Affiliated Escrow/Contracting Fact Sheet
The Company's Statement of Affiliated Trusteeship/Contracting Status:
Presented in RMB
Type of
Name of the Name of the Commissioni Commissioni Escrow/contr Escrow/contr
assets
commissione trustee/contra ng/contractin ng/contractin acting fee acting fee
commissione
r/contractor ctor g start date g end date pricing basis recognized in
d/contracted
the period
Note:
(3) Related party leases
The Company as the lessor:
Presented in RMB
Lease income for the Lease income for the
Lessees Types of assets leased
current period preceding period
Guoren Property
Buildings and structures 421519.98 421519.98
Insurance Co. Ltd.Shenzhen Property
Buildings and structures 2485951.92 2678833.32
Management Co. Ltd.Shenzhen SPG Property
Buildings and structures 19999.98
Cleaning Co. Ltd.The Company as the lessee:
Presented in RMB
Rental costs for
Variable lease
simplified payments not
Type short-term included in the
of leases and low measurement of Interest expense Increased right-Lesser Rent paid
assets value asset lease liabilities on lease liability of-use assets
leased leases (if
(if applicable)
applicable)
135ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Amou Amou Amou Amou Amou
Curren nt of Curren nt of Curren nt of Curren nt of Curren nt of
t previo t previo t previo t previo t previo
amoun us amoun us amoun us amoun us amoun us
t period t period t period t period t period
Note:
(4) Guarantee between related parties
The Company as the guarantor
Presented in RMB
Amount of Inception date of Maturity date of Guarantee expired
Guarantee holder
guarantee guarantee guarantee (Y/N)
The Company as the guarantee holder
Presented in RMB
Amount of Inception date of Maturity date of Guarantee expired
Guarantor
guarantee guarantee guarantee (Y/N)
Note:
(5) Funding from related party
Presented in RMB
Related party Amount of funding Inception date Maturity date Note
Funds received
Funds provided
(6) Transfer of assets and debt restructuring
Presented in RMB
Amount of previous
Related party Nature of transaction Current amount
period
(7) Remuneration of key management personnel
Presented in RMB
Items Current amount Amount of previous period
Remuneration of key management
3124891.502521369.00
personnel
(8) Other related party transactions
In order to encourage the core employees of the group to share the operating results of the market-oriented
projects with the company share the operating risks stimulate the endogenous motivation of improving
efficiency and increasing benefits enhance the efficiency of asset management and realize the preservation and
appreciation of the value of state-owned assets the company has formulated the "Management Measures for
Investment From the Staff of Shenfang Group Linxi Jun Project". According to the above-mentioned
management measures the related party transactions will form a joint investment with some directors
136ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
supervisors and senior executives of the company. As of 30 June 2024 the company's directors supervisors and
senior executives had invested a total of CNY 8.95 million.
6. Receivables from and payables to related parties
(1) Receivables from related parties
Presented in RMB
Closing balance Opening balance
Items Related party Provision for Provision for
Book balance bad and Book balance bad and
doubtful debts doubtful debts
Shenzhen
Xinfeng Real
Accounts
Estate 1215543.75 1215543.75 1215543.75 1215543.75
receivable
Consulting Co.Ltd.Guangdong
Huizhou
Other Luofushan
10465168.8110465168.8110465168.8110465168.81
receivables Mineral Water
Beverage Co.Ltd.Shenzhen
Other Runhua
3072764.423072764.423072764.423072764.42
receivables Automobile
Trading Co. Ltd.Canada Great
Other Wall
89035748.0789035748.0789035748.0789035748.07
receivables (Vancouver) Co.Ltd.Other Australia Berkton
12559290.5812559290.5812559290.5812559290.58
receivables Property Limited
Other
Paklid Limited 19393335.84 19393335.84 19393335.84 19393335.84
receivables
Shenzhen
Other Shenfang
237648.82237648.82237648.82237648.82
receivables Department Store
Co. Ltd.Shenzhen
Ronghua
Other
Electromechanica 475223.46 475223.46 475223.46 475223.46
receivables
l Engineering
Co. Ltd.Xi’an Xinfeng
Other
Property Trading 8419205.19 8419205.19 8419205.19 8419205.19
receivables
Co. Ltd.Shenzhen Shenxi
Other Building
7660529.377660529.377660529.377660529.37
receivables Decoration Co.Ltd.Shenzhen
Other
Nanyang Hotel 3168721.00 3168721.00 3168721.00 3168721.00
receivables
Co. Ltd.Other Beijing SPG 6905673.69 6533817.09 6905673.69 6533817.09
137ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
receivables Property
Management Co.Ltd.
(2) Payables from related parties
Presented in RMB
Items Related parties Closing book balance Opening book balance
Shenzhen Investment
Interest payable 16535277.94 16535277.94
Holdings Co. Ltd.Shenzhen Property
Accounts payable 11066396.26 17053636.61
Management Co. Ltd.Shenzhen Property
Other payables 357069.93 358178.26
Management Co. Ltd.Shenzhen Oriental New
Other payables World Department Store 902974.64 902974.64
Co. Ltd.Fengkai Lianfeng Cement
Other payables 1867348.00 1867348.00
Manufacturing Co. Ltd.Shenzhen Real Estate
Other payables Electromechanical 14981420.99 14981420.99
Management Co. Ltd.Shenzhen Zhentong New
Electromechanical
Other payables 8310832.50 8310832.50
Industrial Development
Co. Ltd.Shenzhen Shenfang
Other payables Department Store Co. 639360.38 639360.38
Ltd.Shenzhen Longgang
Other payables Henggang Huagang 165481.09 165481.09
Industrial Co. Ltd.Guangzhou Bopi
Other payables Enterprise Management 206903717.13 206903717.13
Consulting Co. Ltd.
7. Related party commitment
8. Others
XIV. Share-based payment
1. The general situation of share-based payment
□ Applicable √ Not Applicable
2. Share payment settled in equity
□ Applicable √ Not Applicable
3. Cash-settled share payments
□ Applicable √ Not Applicable
138ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
4. Modification and termination of share-based payment
5. Others
XV. Commitments and contingencies
1. Significant commitments
Significant commitments existing at the balance sheet date
As at 30 June 2024 the Company had capital commitments of RMB150029597.87 yuan contracted but not yet
recognized in the financial statements.
2. Contingencies
(1) Significant contingencies existing on the balance sheet date
* Contingent liabilities arising from pending litigation and arbitration and their financial impact
Court seized Amount of
Plaintiffs Defendants Cause of action Remarks
of the case subject
Xi’an Municipal 21.54 Progress of the
Xi’an Xinfeng Shaanxi Commission of Dispute over million case: under
Provincial
Holding limited Commerce and Trade investment yuan and execution;
High People’s
company Xi’an Commerce and compensation interest Details: [Note Court
Tourism Co. Ltd. thereof 1]
Huizhou
Mingxiang
Economic
Principal
Information Progress of the
of 177.15
Consulting Co. People’s case: judgment million
Guangdong Jianbang Dispute over Court of completed
Ltd. Huizhou yuan and
Group (Huiyang) bill payment Huiyang pending
Hongfa Industry interest of Industrial Co. Ltd. claim District execution;
2.85
and Trade Co. Huizhou City Details: [Note
million
Ltd. and Huizhou 2] yuan
Jinlongsheng
Industrial Co.Ltd.Guangzhou Bopi
Enterprise
Management
Consulting Co. Ltd. Case progress:
Evergrande Real Dispute over Intermediate the case was
Estate Company Pearl joint venture People’s heard and
743.58
River Delta Real and cooperative Court of currently in
The Company million Estate Development real estate Huizhou City the first
yuan
Co. Ltd. Shenzhen development Guangdong instance;
Qijin Investment Co. contracts Province Details: [Note
Ltd. with Guangdong 3]
Jianbang Group
(Huiyang) Industrial
Co. Ltd. as the third
139ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
party
Principal
Case progress:
People’s and
First instance
Guangdong Jianbang Court of interest
Loan contract judgment
The Company Group (Huiyang) Luohu totaling
dispute completed;
Industrial Co. Ltd. District 395.69
Details: [Note
Shenzhen City million
4]
yuan
Progress of the
Guangdong Jianbang
Group (Huiyang) case:
Industrial Co. Ltd. judgement in
Guangzhou Bopi
Principal the first
Enterprise
People’s and instance
Management
Court of interest
Consulting Co. Ltd. Loan contract Guangzhou
The Company Huiyang totaling
Evergrande Real dispute Bopi appealed
District 419.52
Estate Company Pearl
Huizhou City million and is in the
River Delta Real
yuan second
Estate Development
Co. Ltd. Shenzhen instance.Qijin Investment Co. Details: [Note
Ltd.
5]
Note 1: Xi’an Xinfeng Property Trading Co. Ltd. (the “Xi’an Xinfeng Company”) is a joint venture with
overseas investments co-established in Xi’an by the Company’s wholly-owned subsidiary Xinfeng Enterprise
Co. Ltd. with shareholding of 67% with cash contribution by Xi’an Commerce and Trade Building a
subsidiary of Xi’an Municipal Commission of Commerce and Trade (the “Xi’an MCCT”) with shareholding of
16% with land use rights contribution and by Hong Kong Dadiwang Industrial Investment Co. Ltd. with
shareholding of 17%. The joint venture is mainly engaged in real estate development and its development
project is Xi’an Commerce and Trade Building. The project started construction on November 28 1995 but
was forced to be suspended in 1996 due to serious disagreements between the cooperating parties on project
management policies. In 1997 the Xi’an Municipal People’s Government forcibly withdrew the investments
made by Xi’an Commerce and Trade Building from Xi’an Xinfeng Company and transferred the investments to
Xi’an Commerce and Tourism Co. Ltd. (the “Commerce and Tourism Company”) an affiliated entity of Xi’an
MCCT. However a lawsuit regarding the investments compensation arose therefor. On December 19 2001 the
Shaanxi Provincial High People’s Court issued a judgment numbered 2000 Shaan Jing Yi Chu Zi 25: a. the
Commerce and Tourism Company should pay a compensation of 36.62 million yuan and interest thereof to
Xi’an Xinfeng Company one month after the judgment came into effect. In case of overdue performance the
debt interest during the delayed performance period should be doubled; b. the Xi’an MCCT should bear joint
and several liability for the interest on the aforementioned compensation.The assets of the Commerce and Tourism Company were auctioned off in this case and 15.20 million yuan has
been recovered through execution. Based on the property clues obtained the Company submitted multiple
applications to the Shaanxi Provincial High People’s Court for resumption of execution. As of June 30 2024
this case is in the execution stage.As at June 30 2024 the carrying amount of the Company's long-term equity investment in Xi'an Xinfeng was
RMB32840729.61yuan for which a full provision for impairment had been made and the carrying amount of
the debenture was RMB8419205.19 yuan for which a full provision for impairment had been made.Note 2: Guangdong Jianbang Group (Huiyang) Industrial Co. Ltd. (“Jianbang Company”) is a subsidiary of the
Company with shareholding of 51%. Due to Jianbang Company’s inability to redeem trade acceptance due in
January 2022 totaling 177.15 million yuan the plaintiffs filed a lawsuit on dispute over the bill payment claim
with the People’s Court of Huiyang District Huizhou City. The judgement was completed on March 14 2023
and Jianbang Company was ordered to pay trade acceptance and overdue interests to three plaintiffs within 15
140ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
days (including bearing litigation and preservation costs of approximately 1.03 million yuan). As of June 30
2024 the plaintiff has applied to the Huizhou Intermediate People's Court for execution.
As of June 30 2024 Building 2 and Building 4 of the first phase of the Linxin Community project with an
estimated registered price of 220 million yuan totaling 153 units were seized.Note 3: On April 30 2021 the Company signed the “Cooperative Development Agreement” and “EntrustedManagement Agreement” with Guangzhou Bopi Enterprise Management Consulting Co. Ltd. (the “GuangzhouBopi”) Evergrande Real Estate Company Pearl River Delta Real Estate Development Co. Ltd. (the
“Evergrande Pearl River Delta”) and Jianbang Company. Guangzhou Bopi promised that Jianbang Company
shall achieve cumulative net profits no less than 1.25 billion yuan from 2021 to 2025. If Guangzhou Bopi fails
to fulfill its profit commitment it shall make up for the difference. On June 30 2021 due to the acquisition of
51% of equity of Guangzhou Bopi by Shenzhen Qijin Investment Co. Ltd. (the “Shenzhen Qijin”) the
Company Guangzhou Bopi Evergrande Pearl River Delta and Shenzhen Qijin jointly signed Supplementary
Agreement I to the “Cooperative Development Agreement” stipulating that Shenzhen Qijin shall bear joint and
several liability with Evergrande Pearl River Delta for Guangzhou Bopi’s profit commitment to the Company
and balance replenishment matters stipulated in the “Cooperative Development Agreement”. Due to the
fundamental breach of contract by Guangzhou Bopi and Evergrande Pearl River Delta and their actual loss of
performance ability causing the failure to achieve the purpose and expected benefits of the contract the
Company filed a lawsuit. This case was heard in February 2024 and is currently in the first instance.Note 4: In 2021 the Company acquired 51% of the defendant’s equity held by the person other than involved in
the case and agreed to provide interest-bearing loans to Jianbang Company based on the holding proportion.Later Jianbang Company made borrowings from the Company in two installments and signed the “LoanAgreement”. After the agreement was signed the Company provided borrowings to Jianbang Company in
accordance with the agreement and fulfilled its lending obligations. Both borrowings have already expired but
have not been repaid by Jianbang Company which constitutes a breach of contract. As a state-owned listed
company the Company filed a lawsuit to protect state-owned assets from losses. The first instance judgment of
this case was made in December 2023. In January 2024 the Company received a civil judgment made by the
People’s Court of Luohu District Shenzhen City Guangdong Province stating that Jianbang Company shall
repay the principal of borrowings of 344696200.26 yuan and pay interest to the Company within ten days from
the effective date of the judgment; Jianbang Company shall pay liquidated damages to the Company within ten
days from the effective date of the judgment.Note 5: In 2021 the Company acquired 51% equity of Jianbang Company held by Guangzhou Bopi and agreed
to provide interest bearing borrowings to Jianbang Company based on the holding proportion. Later five parties
signed an agreement stipulating that the Company will provide borrowings to Jianbang Company and the latter
will provide corresponding collateral. At the same time Guangzhou Bopi Evergrande Pearl River Delta and
Shenzhen Qijin shall bear joint and several guarantee responsibilities for 49% of the total borrowing amount as
well as interest and liquidated damages. After the agreement was signed the Company provided borrowings to
Jianbang Company in accordance with the agreement and fulfilled its lending obligations. However Jianbang
Company was unable to repay the borrowings. As a state-owned listed company the Company filed a lawsuit to
protect state-owned assets from losses.The case had been opened in March 2024 and the Company received the
judgement of the first instance on 7 June. On 24 June 2024 Guangzhou Boppi filed an appeal and the case
entered into the procedure of the second instance.
(2) Contingent liabilities incurred by providing debt guarantees for other entities and the financial effect
As at 30 June 2024 the Company provided mortgage loan guarantees totalling RMB556192400 yuan to off-
takers of commercial properties in accordance with its real estate business practices.Amount of
borrowings
Guaranteed Financial institutions granting Maturity date of
guaranteed (in Remarks
parties borrowings guarantees
ten thousand
yuan)
141ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Until the mortgage
registration of the
property certificate is Shanglin
Homebuyer China Construction Bank 45.15
completed and handed Community
over to the bank for
safekeeping
Until the mortgage
registration of the
China Construction Bank and property certificate is Cuilin
Homebuyer 834.67
Agricultural Bank of China completed and handed Community
over to the bank for
safekeeping
Until the mortgage
registration of the
China Construction Bank Chuanqi
property certificate is
Homebuyer Industrial and Commercial Bank 662.04 Donghu
completed and handed
of China Garden
over to the bank for
safekeeping
China Construction Bank Bank Until the mortgage
of Communications Industrial registration of the
and Commercial Bank of China property certificate is
Homebuyer 1989.28 Tianyue Bay
Bank of China China Everbright completed and handed
Bank Postal Savings Bank of over to the bank for
China safekeeping
Industrial and Commercial Bank Until the mortgage
of China Huaxia Bank registration of the
Agricultural Bank of China property certificate is Guangming
Homebuyer 51357.25
Postal Savings Bank of China completed and handed Lane
China Merchants Bank Bank of over to the bank for
China safekeeping
Until the mortgage
registration of the
China Merchants Bank and Bank property certificate is Linxin
Homebuyer 730.84
of China completed and handed Community
over to the bank for
safekeeping
Subtotal 55619.24
(3) It is necessary to explain if the group has no material contingencies to be disclosed.
There were no material contingencies that the company needed to disclose.
3. Others
XVI.Events after the balance sheet date
1. Significant non-adjusting events
Presented in RMB
Effects on financial
Reasons for effects being
Items Contents position and operating
unable to be estimated
results
142ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
2. Profit appropriations after the balance sheet date
3. Sale returns
4. Other events after the balance sheet date
XVII.Other significant events
1. Corrections of errors in prior periods
(1) Retrospective method
Presented in RMB
Details of corrections of Financial item affected in
Adjustment procedure Cumulative amount
errors the comparable period
(2) Prospective method
Reason for using prospective
Details of correction of errors Approval procedure
method
2. Major debt restructuring
3. Replacement of assets
(1) Exchange of non-monetary assets
(2) Other asset replacement
4. Annuity plan
5. Termination of operation
Presented in RMB
Profit from
discontinued
operations
Profit before Income tax
Item Revenue Costs Net profit attributable
taxation expenses
to owners of
the Company
as the parent
Other notes
6. Segment reporting
(1) The basis for determining the reporting segments and accounting policy
(2) Financial information of the reporting segments
Presented in RMB
Item Offset among segment Total
143ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
(3) In case there is no reporting segment or the total assets and liabilities of the reporting segments
cannot be disclosed explain the reason
(4) Other notes
7. Other significant transactions and matters that may affect investors' decision making
8. Others
XVIII. Notes for main items in the parent company's financial statements
1. Accounts Receivable
(1) Accounts receivables disclosed by aging
Presented in RMB
Aging As at 30 June 2024 As at 1 January 2024
Within 1 year (with 1 year
11951958.4515636256.41
inclusive)
Over 3 years 4450138.62 4450138.62
Over 5 years 4450138.62 4450138.62
Total 16402097.07 20086395.03
(2) Accounts receivables disclosed by categories
Presented in RMB
Closing balance Opening balance
Bad debt Bad debt
Book balance Book balance
provision provision
Catego
ries Provisi Book Provisi Book
Amoun Proport Amoun on value Amoun Proport Amoun on value
t ion t proport t ion t proport
ion ion
Bad
debt
provisi
ons
made 10084 10084 100.00 10084 10084 100.0061.48% 50.20%
on an 109.60 109.60 % 109.60 109.60 %
individ
ual
basis
Includi
ng:
Bad
debt
provisi 63179 28318 60348 10002 25140 9750838.52% 4.48% 49.80% 2.51%
ons 87.47 5.80 01.67 285.43 0.42 85.01
made
on a
144ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
combin
ation
basis
Includi
ng:
16402100.00103676034820086100.001033597508
Total 63.21% 51.46%
097.07%295.4001.67395.03%510.0285.01
Bad debt provisions made on an important individual basis:
Presented in RMB
Opening balance Closing balance
Item Book Bad debt Book Bad debt Percentage Reason for
balance provision balance provision of provision accrual
Expected to
long-term accounts
10084109. 10084109. 10084109. 10084109. be
receivable from
60 60 60 60 noncollectab
property sales
le
10084109.10084109.10084109.10084109.
Total
60606060
Bad debt provisions made on a combination basis:
Presented in RMB
Closing balance
Item
Book balance Bad debt provision Percentage of provision
Accounts receivable from others 5663716.00 283185.80 5.00%
Accounts receivable from related
654271.47
parties in consolidated scope
Total 6317987.47 283185.80
Note to the basis for determining the combination:
Please refer to the way of disclosing other receivables’ bad debt provision to disclose relevant information if
the group choose to use general model of expected credit losses to accrue bad debts of accounts receivable.□Applicable □ Inapplicable
(3) Additions recoveries or reversals of provision for the current period
Provision for the current period:
Presented in RMB
Amount changes in current period
Opening Closing
Types
balance Recoveries or Provision Written-off Others balance
reversals
Bad debt
provisions
made on a 251400.42 31785.38 283185.80
combination
basis
Total 251400.42 31785.38 283185.80
Including the significant write-offs of accounts receivable are as follows:
Presented in RMB
145ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
The basis for determining the
Recoveries or Approaches to
Name of the entity Reasons proportion of provision for bad
reversals amount recoveries
debts and its reasonableness
(4) Actual write-off of accounts receivable in the current
Presented in RMB
Item Amount of written-off
Including the significant write-offs of accounts receivable are as follows::
Presented in RMB
Accounts
receivable
Nature of Approval
Name of the Written-off Reason for arising from
accounts procedures
entity amount written-off related party
receivable performed
transactions(Y/
N)
Notes:
(5) The top five units with the ending balance of accounts receivable and collected by the debtor
Presented in RMB
Provision for
Closing % of the total bad debts of
The closing
The closing balances of closing balance accounts
Name of the balance of
balance of the accounts of accounts receivable and
entity accounts
contract asset receivable and receivable and provision for
receivable
contract assets contract assets impairment of
contract assets
2. Other receivables
Presented in RMB
Item Closing balance Opening balance
Dividends receivable 29222722.88 29222722.88
Other receivables 1675543018.17 1693941657.82
Total 1704765741.05 1723164380.70
(1) Interest receivable
1) Classification of interest receivable
Presented in RMB
Item Closing balance Opening balance
2) Significant overdue interest
Presented in RMB
Overdue time Whether
Borrowing unit Closing balance Overdue reason
(month) impairment occurs
and the basis for
146ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
judgment
Other notes:
3) Bad Debt Provisions
□Applicable □ Inapplicable
4) Additions recoveries or reversals of provision for the current period
Presented in RMB
Amount changes in current period
Opening Closing
Categories
balance Recoveries or Provision Written-off Others balance
reversals
Including significant accounts receivable written-off situation is as follows:
Presented in RMB
Recoveries The basis for determining the
Approaches to
Name of the entity or reversals Reasons proportion of provision for bad
recoveries
amount debts and its reasonableness
Other notes:
5) Dividends receivable actually written off in the current period
Presented in RMB
Item Amount of written-off
Among them the write-off of interest receivables is important
Presented in RMB
Accounts receivable
Approval
Name of the Nature of accounts Written-off arising from related
Reason procedures
entity receivable amount party
performed
transactions(Y/N)
Other notes:
(2) Dividends receivable
1) Dividends receivable classification
Presented in RMB
Items (or invested units) Closing balance Opening balance
Shenzhen City SPG Long Gang
29222722.8829222722.88
Development Ltd.Total 29222722.88 29222722.88
2) Significant dividends receivable overdue more than one year are as follows:
Presented in RMB
Reasons for not
Items (or invested units) Closing balance Aging Whether recovered impairment occurs
147ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
and the basis for
judgment
Shenzhen City SPG Long
29222722.88 1-2year Defer None
Gang Development Ltd.Total 29222722.88
3) Bad Debt Provisions
□Applicable □ Inapplicable
4) Additions recoveries or reversals of provision for the current period
Presented in RMB
Amount changes in current period
Opening Closing
Categories
balance Recoveries or Provision Written-off Others balance
reversals
Including significant accounts receivable written-off situation is as follows:
Presented in RMB
The basis for determining
Recoveries or Approaches to the proportion of provision
Name of the entity Reasons
reversals amount recoveries for bad debts and its
reasonableness
Other notes:
5) Dividends receivable actually written off in the current period
Presented in RMB
Item Amount of written-off
Including significant write-off of important dividends receivable is as follows:
Presented in RMB
Whether the
Nature of Approval amount arose
Name of the Written-off
accounts Reason procedures from a
entity amount
receivable performed connected
transaction
Other notes:
(3) Other receivables
1) Other receivables disclosure by nature
Presented in RMB
Item Closing balance Opening balance
Portfolio grouped with balances
2409623024.032371906725.11
due from related parties
Portfolio grouped with government
165460.00165460.00
funds receivable
Portfolio grouped with employee 45940.00 62454.80
148ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
petty cash receivable
Portfolio grouped with advances
received and paid on behalf of 0.00 67200.00
others
Portfolio grouped with other inter-
116030788.57142185626.87
company balances receivable
Total 2525865212.60 2514387466.78
2) Age analysis
Presented in RMB
Ages Closing balance Opening balance
Within 1 year 103651481.52 92173735.70
1-2 years 333456337.77 333456337.77
2-3 years 456845625.71 456845625.71
Over 3 years 1631911767.60 1631911767.60
3-4 years 104875297.41 104875297.41
4-5 years 70181566.47 70181566.47
Over 5 years 1456854903.72 1456854903.72
Total 2525865212.60 2514387466.78
3) Provision for bad debts
Presented in RMB
Closing balance Opening balance
Provision for bad Provision for bad
Book balance Book balance
debts debts
Catego
ries Provisi Book Provisi Book
% to Amoun on value Amoun % to Amoun on value
Amount
total t proport t total t proport
ion (%) ion (%)
Rece
ivables
with
provisi
820418204182041
on 8204143 32.4 100.00 100.00
4389.74389.732.63%4389.7
made 89.79 8% % %
999
on an
individ
ual
basis
inclu
ding:
Rece
ivables
with 17047 16939 169391705450 67.5 68508 31419.provisi 0.04% 65741. 73076. 67.37% 0.00% 41657.822.81 2% 1.76 17
on 05 99 82
made
on a
149ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
collecti
ve
basis
inclu
ding:
8210917047251438204416939
2525865100.100.00
Total 9471.5 32.51% 65741. 87466. 5808.9 32.63% 41657.
212.6000%%
50578682
Changes in provision for bad debts:
Presented in RMB
Stage 1 Stage 2 Stage 3
Lifetime expected Lifetime expected
Items 12? month expected Total
credit losses (credit credit losses (credit
credit losses
not impaired) impaired)
Opening balance 820445808.96 820445808.96
Opening balance in
the current period
Other changes 653662.59 653662.59
Closing balance 821099471.55 821099471.55
The basis for the division of each stage and the proportion of bad debt provision
Changes in the book balance with significant changes in the loss provision for the current period:
□Applicable □ Inapplicable
4) Additions recoveries or reversals of provision for the current period
Provision for bad debts in the current period:
Presented in RMB
Amount changes in current period
Opening Closing
Categories
balance Recoveries or Provision Written-off Others balance
reversals
Including significant accounts receivable written-off situation is as follows:
Presented in RMB
The basis for
determining the
Recoveries or Approaches to proportion of
Name of the entity Reasons
reversals amount recoveries provision for bad
debts and its
reasonableness
5) Other receivables actually written off in the current period
Presented in RMB
Item Amount of written-off
Including significant accounts receivable written-off situation is as follows:
Presented in RMB
150ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Verification and Whether the
payment is
Name of the Nature of other Amount of cancellation
Reason generated by an
entity receivable written-off procedures to be
affiliate
performed
transaction
Other notes:
6) The top five units of ending balance of other receivables
Presented in RMB
Proportion of
Nature of Ending
total ending
Name of the entity other Closing balance Aging balance of bad
balance of other
receivables debt provision
receivables (%)
Guangdong
Receivable
Jianbang Group Within 1 year.1-
from 816856739.12 32.34%
(Huiyang) 2 years.2-3year
Subsidiary
Industrial Co. Ltd.Shantou Huafeng
Receivable
Estate Within 1 year
from 745718384.72 29.52%
Development Co. over five years
Subsidiary
Ltd
Receivable
Fresh Peak 535782669.7
from 535782669.79 Over five years 21.21%
Enterprise Ltd. 9
Subsidiary
Receivable
American Great 104981769.0
from 104981769.07 Over five years 4.16%
Wall Co. Ltd 7
Subsidiary
Receivable
Wellam Co. Ltd. from 90686884.30 3-4 years 3.59%
Subsidiary
2294026447.0640764438.8
Total 90.82%
06
7) Other receivables terminated due to the transfer of financial assets
Presented in RMB
Other notes:
3. Long-term equity investments
Presented in RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
reserve reserve
Investment in 171552083 392155084. 132336574 171552083 392155084. 132336574
subsidiaries 3.00 61 8.39 3.00 61 8.39
Investment in
associates 11977845.5 11977845.5 11977845.5 11977845.5
and joint 8 8 8 8
ventures
172749867404132930.132336574172749867404132930.132336574
Total
8.58198.398.58198.39
151ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
(1) Investment in subsidiaries
Presented in RMB
Opening Increase/Decrease Ending
balance balance
Opening Closing
of the Additiona Decrease Provision of the
Name of balance balance
provision l of for provision
investee (Book Other (Book
for investme investme impairme for
value) value)
impairme nt nt nt impairme
n n
Shenzhen
Petrel 2060504 2060504
Hotel Co. 7.50 7.50
Ltd.Shenzhen
City
90000009000000
Shenfang.00.00
Investme
nt Ltd.Fresh
Peak 556500.0 556500.0
Enterpris 0 0
e Ltd.Fresh
Peak 2271769 2271769
Zhiye 7.73 7.73
Co. Ltd.Shenzhen
Zhen
11332321133232
Tung
1.451.45
Engineeri
ng Ltd
American
Great 1435802 1435802
Wall Co. .00 .00
Ltd
Shenzhen
City
Shenfang
47500004750000
Free.00.00
Trade
Trading
Ltd.Beijing
Shenfang
Property 6000000 6000000
Managem .00 .00
ent Co.Ltd.Shenzhen
Lain Hua
Industry 1345821 1345821
and 7.05 7.05
Trading
Co. Ltd.Shenzhen 3085000 3085000
City SPG 0.00 0.00
152ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Long
Gang
Develop
ment Ltd.Beijing
Fresh
Peak
Property
Develop 6418388 6418388
ment 8.90 8.90
Managem
ent
Limited
Company
Shantou
City
Huafeng
Real 1646702 1646702
Estate 1.02 1.02
Develop
ment Co.Ltd
Paklid 201100.0 201100.0
Limited 0 0
Bekaton
906630.0906630.0
Property
00
Limited
Shenzhen
Shenfang
95000009500000
Departme.00.00
nt Store
Co. Ltd.Shantou
Fresh 5854765 5854765
Peak 2.25 2.25
Building
Guangdo
ng
Jianbang
Group 1911841 2588158 1911841 2588158
(Huiyang 86.54 13.46 86.54 13.46
)
Industrial
Co. Ltd.Shenzhen
Shenfang
Chuanqi
Real 9950000 9950000
Estate 00.00 00.00
Develop
ment Co.Ltd.Wellam
8955.108955.10
Co. Ltd.
1323365392155013233653921550
Total
748.3984.61748.3984.61
153ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
(2) Investment in associates and joint ventures
Presented in RMB
Increase/Decrease
Inco
Openi me EndinAnno
ng from g unced
Openi Other balan Equit Closi balanfor
ng ce of compy Provi ng ce of
Invest Decrebalan the Addit rehen Other distri
ional ase of invest
sion balan the
ees ce(Bo provis sive equity butin Otherment for ce(Bo provis
ok ion invest invest Inco move g s
ment recog
ok ion
value) for ment me ment cash
impai
nized rment value) for
impai adjustunder divide impai
rment ment equity nd or rment
metho profit
d
1.Joint Venture
Fengk
ai 9455 9455
Xingh 465.3 465.3
ua 8 8
Hotel
94559455
Subto
465.3465.3
tal
88
II. Associates
Shenz
hen
Rong 1076 1076
hua 954.6 954.6
Jidian 4 4
Co.Ltd
Shenz
hen
Runh
ua
Auto 1445 1445
mobil 425.5 425.5
e 6 6
Tradi
ng
Co.Ltd
25222522
Subto
380.2380.2
tal
00
11971197
Total 7845. 7845.
5858
The recoverable amount is determined on the basis of fair value less disposal costs
□Applicable □ Inapplicable
154ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
The recoverable amount is determined by the present value of the projected future cash flows
□Applicable □ Inapplicable
The reason for the obvious discrepancy between the foregoing information and the information used in the
impairment test of previous years or external information
The reason for the obvious discrepancy between the information used in the company's impairment test in
previous years and the actual situation in the current year
(3) Other notes
4. Operating revenue/Operating cost
Presented in RMB
Current amount Amount of previous period
Items
Income Costs Income Costs
Main operations 32476399.59 14063038.19 45457639.46 14351721.51
Other operations 857.13 354014.90
Total 32477256.72 14063038.19 45811654.36 14351721.51
Revenue related information:
Information related to performance obligations:
Other notes
The Company's real estate sales business is a performance obligation to be performed at a certain point in time.The realization of sales revenue shall be recognized when the development product has been completed and
accepted the sales contract has been signed and the obligations stipulated in the contract have been fulfilled the
notice or announcement of occupancy has been issued to the owner the property has been actually delivered to
the owner or the delivery date agreed in the contract has expired the full amount of the house has been
collected and the relevant costs that have been incurred or will be incurred can be reliably measured.Information related to the transaction price allocated to the remaining performance obligations:
At the end of the reporting period the amount of revenue corresponding to the performance obligations that
have been signed but not yet performed or not yet completed is RMB 95177083.51 yuan Among them RMB
26633213.14 yuan is expected to be recognized as revenue in 2024 RMB 42746387.28 is expected to be
recognized as revenue in the year 2025 and RMB 25797483.09 yuan is expected to be recognized as revenue
in the year 2026.Significant contract changes or major transaction price adjustments
Presented in RMB
Items Accounting treatments The impact on revenue
Other notes:
5. Investment income
Presented in RMB
155ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
Items Current period cumulative Preceding period comparative
Gains on residual equity
remeasured at fair value after 161491.79
losing control power
Dividend income from other equity
777600.00
instrument investments
Other 1644822.69
Total 777600.00 1806314.48
6. Other
XIX. Supplementary Information
1. Statement of non-recurring gains and losses for the current period
□Applicable □ Inapplicable
Presented in RMB
Item Amount Note
Gain or loss on disposal of non-current assets 223872.34
Government subsidies in the current profit and
loss(except the part that are closely related to the
company's normal business operations comply with
83011.12
national policies and regulations and will
continuously enjoyed with a fixed or quantitative
manner according to certain standards)
Changes in fair value and investment
Gain or loss on assets entrusted to other entities for 9721583.1
income arising from investment in
investment or management 9
monetary funds
1158344.9
Non-operating income/(expenses) except the above
6
Less: Amount affected by the income tax 366307.11
Non-controlling interest affected (after tax) 585.56
10819918.
Total --
94
Details of other profit and loss items that meet the definition of non-recurring gain and loss:
□Applicable □ Inapplicable
Details of the company does not have other profit and loss items that meet the definition of non-recurring profit
and loss
Description of defining the non-recurring profit and loss items listed in 'Explanatory Announcement No. 1 on
information disclosure of companies offering securities to the public - non recurring profits and losses’ as
recurring profit and loss items.□Applicable □ Inapplicable
2. ROE and EPS
Weighted average ROE EPS (yuan/share)
Profit in reporting period
(%) Basic EPS Diluted EPS
Net income attributable
0.11%0.00560.0056
to the common
156ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interim Report 2024
shareholders of the Group
Net profit attributable to
common shareholders of
a company after -0.14% -0.0051 -0.0051
deducting non-recurring
gains and losses
3. Differences in accounting data under domestic and foreign accounting standards
(1) The difference between net profit and net assets in the financial report disclosed in accordance with
International Accounting Standards and Chinese Accounting Standards
□Applicable □ Inapplicable
(2) The difference between net profit and net assets in the financial report disclosed in accordance with
International accounting standards for overseas enterprises and Chinese accounting standards for
enterprises
□Applicable □ Inapplicable
(3) Note to the discrepancy in accounting data under the accounting standards outside Mainland China.
In case the discrepancy in data which have been audited by an overseas auditing agent has been adjusted
please specify the name of the overseas auditing agent.
4. Others
157
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