ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. First Quarterly Report 2022

Stock Code: 000029 200029 Stock Name: SPG SPG-B Announcement No.: 2022-016

SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE

& PROPERTIES (GROUP) CO. LTD.FIRST QUARTERLY REPORT 2022

Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. (hereinafter referred to as the

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

Report are true accurate and complete and free of any misrepresentations misleading statements or material

omissions.Important Notes:

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

management of the Company hereby guarantee that the contents of this Report are true accurate and complete and

free of any misrepresentations misleading statements or material omissions and collectively and individually

accept legal responsibility for such contents.

2. The Company’s legal representative Chief Financial Officer and head of the Company’s financial department

(equivalent to financial manager) hereby guarantee that the financial statements carried in this Report are true

accurate and complete.

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

□Yes √ No

I Key Financial Information

(I) Key Accounting Data and Financial Indicators

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

Q1 2022 Q1 2021 YoY change (%)

Operating revenue (RMB) 272594952.10 415282352.53 -34.36%

Net profit attributable to the listed

162278083.5988040167.6084.32%

company’s shareholders (RMB)

Net profit attributable to the listed

company’s shareholders before exceptional 37225453.61 87395877.39 -57.41%

gains and losses (RMB)

Net cash generated from/used in operating

-461062516.92303456191.73-251.94%

activities (RMB)

Basic earnings per share (RMB/share) 0.1604 0.0870 84.37%

Diluted earnings per share (RMB/share) 0.1604 0.0870 84.37%

Weighted average return on equity (%) 4.04% 2.29% 1.75%

31 March 2022 31 December 2021 Change (%)

Total assets (RMB) 5725419099.38 6182498050.43 -7.39%

Equity attributable to the listed company’s 4098839837.34 3938260291.97 4.08%

1ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. First Quarterly Report 2022

shareholders (RMB)

(II) Exceptional Gains and Losses

√ Applicable □ Not applicable

Unit: RMB

Item Q1 2022 Note

Gain/Loss arising from disposal of non-current assets (inclusive Payment of equity transfer of

163352077.77

of impairment allowance write-offs) property company

Gain/Loss on changes in fair value arising from holding of

trading financial assets and liabilities and investment income

from disposal of trading financial assets trading financial Gain/loss on changes in fair value

2986182.85

liabilities and available-for-sale financial assets other than of monetary fund

effective hedge business related to the Company’s normal

operating businesses

Non-operating income and expense other than the above 398579.36

Less: Income tax effects 41684210.00

Total 125052629.98 --

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

□ Applicable √ Not applicable

No such cases in the Reporting Period.Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the Explanatory Announcement No.

1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss Items:

□ Applicable √ Not applicable

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

√ Applicable □ Not applicable

Operating revenue declined 34.36% during Q1 2022 compared to Q1 2021 primarily driven by the decreased property sales and

sales carryforwards.Return on investment rose during Q1 2022 compared to Q1 2021 primarily driven by the transfer of the 100% equity interests in

Shenzhen Property Management Co. Ltd.Monetary assets declined 43.69% as at 31 March 2022 compared to 31 December 2021 primarily driven by the payment of land

value-added tax.Other equity instruments declined 63.43% as at 31 March 2022 compared to 31 December 2021 primarily driven by the transfer of a

25% interest in Yunnan Kun Peng Aviation Service Limited Corporation.

Contract liabilities declined 81.35% as at 31 March 2022 compared to 31 December 2021 primarily driven by the property

carryforwards in Q1.Taxes and levies payable declined 56.75% as at 31 March 2022 compared to 31 December 2021 primarily driven by the payment of

various taxes.Net cash generated from operating activities declined 251.94% during Q1 2022 compared to Q1 2021 primarily driven by the

decreased sales inflows and the increased tax and levy payments.Net cash generated from investing activities rose 85848.24% during Q1 2022 compared to Q1 2021 primarily driven by the arrival of

proceeds from the disposal of equity interests in subsidiaries and other business entities as well as the redemption of investments in

monetary funds.II Shareholder Information

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

as Holdings of Top 10 Shareholders

Unit: share

Number of preference

Number of ordinary shareholders 54127 shareholders with resumed 0

voting rights (if any)

Top 10 shareholders

2ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. First Quarterly Report 2022

Sharehol Shares in pledge marked

Nature of ding Total shares Restricted or frozen

Name of shareholder

shareholder percenta held shares held

ge Status Shares

Shenzhen Investment Holdings Co. State-owned

57.19%578595836

Ltd. corporation

Domestic

Shenzhen State-Owned Equity

non-state-owned 6.35% 64288426

Operation and Management Co. Ltd.legal person

Domestic natural

Yang Jianmin 0.68% 6896877

person

Domestic natural

Pan Jun 0.50% 5017800

person

Domestic natural

Lin Weirong 0.42% 4290200

person

Domestic natural

Zhang Xiujuan 0.36% 3597300

person

Domestic natural

Wang Yulan 0.29% 2929291

person

Domestic natural

Zhu Fengbo 0.21% 2100000

person

Domestic natural

Liu Yuqing 0.20% 2061201

person

Domestic natural

Luo Yundi 0.19% 1920900

person

Top 10 unrestricted shareholders

Shares by type

Name of shareholder Unrestricted shares held

Type Shares

RMB-denominated ordinary

Shenzhen Investment Holdings Co. Ltd. 578595836 578595836

stock

Shenzhen State-Owned Equity Operation RMB-denominated ordinary

6428842664288426

and Management Co. Ltd. stock

RMB-denominated ordinary

Yang Jianmin 6896877 6896877

stock

RMB-denominated ordinary

Pan Jun 5017800 5017800

stock

RMB-denominated ordinary

Lin Weirong 4290200 4290200

stock

RMB-denominated ordinary

Zhang Xiujuan 3597300 3597300

stock

RMB-denominated ordinary

Wang Yulan 2929291 2929291

stock

RMB-denominated ordinary

Zhu Fengbo 2100000 2100000

stock

RMB-denominated ordinary

Liu Yuqing 2061201 2061201

stock

RMB-denominated ordinary

Luo Yundi 1920900 1920900

stock

Among the top 10 shareholders of the Company Shenzhen State-Owned

Equity Operation and Management Co. Ltd. is the wholly-owned subsidiary

Related or acting-in-concert parties among the of Shenzhen Investment Holdings Co. Ltd. The Company does not know

shareholders above whether there exists related-party 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.Top 10 shareholders engaged in securities margin Among the top 10 shareholders the third shareholder holds 5368800 shares

trading (if any) of the Company in his credit security account; the fifth shareholder holds

3ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. First Quarterly Report 2022

2566900 shares of the Company in his credit security account; the sixth

shareholder holds 3597300 shares of the Company in her credit security

account; the ninth shareholder holds 2010201 shares of the Company in its

credit security account.(II) Number of Preference Shareholders and Shareholdings of Top 10 of Them

□ Applicable √ Not applicable

III Other Significant Events

□ Applicable √ Not applicable

IV Quarterly Financial Statements

(I) Financial Statements

1. Consolidated Balance Sheet

Prepared by ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.

31 March 2022

Unit: RMB

Item 31 March 2022 31 December 2021

Current assets:

Monetary assets 317773136.03 564358824.63

Settlement reserve

Loans to other banks and financial

institutions

Held-for-trading financial assets 402010893.76 514024710.91

Derivative financial assets

Notes receivable 2514937.37 3530537.37

Accounts receivable 66459417.53 61048785.11

Receivables financing

Prepayments 12063042.16 4899011.32

Premiums receivable

Reinsurance receivables

Receivable reinsurance contract

reserve

Other receivables 35566452.20 30614008.08

Including: Interest receivable

Dividends receivable 1052192.76 1052192.76

Financial assets purchased under

resale agreements

Inventories 4046644531.96 4034933562.62

Contract assets

Assets held for sale 78940232.10

Current portion of non-current assets

Other current assets 64117630.38 68216887.04

Total current assets 4947150041.39 5360566559.18

Non-current assets:

Loans and advances to customers

4ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. First Quarterly Report 2022

Debt investments

Other debt investments

Long-term receivables

Long-term equity investments 272168.28 272168.28

Investments in other equity

13282187.6236322704.33

instruments

Other non-current financial assets

Investment property 582426836.60 588865777.16

Fixed assets 23296957.83 23920424.55

Construction in progress

Productive living assets

Oil and gas assets

Right-of-use assets 332138.15 365351.97

Intangible assets

Development costs

Goodwill

Long-term prepaid expense 2169381.27 2164963.18

Deferred income tax assets 156489388.24 170020101.78

Other non-current assets

Total non-current assets 778269057.99 821931491.25

Total assets 5725419099.38 6182498050.43

Current liabilities:

Short-term borrowings 57571609.40 50440116.24

Borrowings from the central bank

Loans from other banks and financial

institutions

Held-for-trading financial liabilities

Derivative financial liabilities

Notes payable 240999316.88 247376403.56

Accounts payable 123265359.96 141447559.24

Advances from customers 6300519.50 6411427.04

Contract liabilities 37593847.51 199965490.08

Financial assets sold under

repurchase agreements

Customer deposits and deposits from

other banks and financial institutions

Payables for acting trading of

securities

Payables for underwriting of

securities

Employee benefits payable 42461649.01 43926711.78

Taxes and levies payable 260843644.66 600540872.48

Other payables 560164122.66 581377415.64

Including: Interest payable 16535277.94 16535277.94

Dividends payable

Fees and commissions payable

Reinsurance payables

Liabilities directly associated with

65752452.06

assets held for sale

Current portion of non-current

62267.5883023.44

liabilities

5ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. First Quarterly Report 2022

Other current liabilities 2164008.15 8196849.13

Total current liabilities 1331426345.31 1945518320.69

Non-current liabilities:

Insurance contract reserve

Long-term borrowings

Bonds payable

Including: Preference shares

Perpetual bonds

Lease liabilities 129067.63 125920.77

Long-term payables

Long-term employee benefits

payable

Provisions

Deferred income

Deferred income tax liabilities 6540205.39 9524639.56

Other non-current liabilities

Total non-current liabilities 6669273.02 9650560.33

Total liabilities 1338095618.33 1955168881.02

Owners’ equity:

Share capital 1011660000.00 1011660000.00

Other equity instruments

Including: Preference shares

Perpetual bonds

Capital reserves 978244910.11 978244910.11

Less: Treasury stock

Other comprehensive income 22940652.47 36088963.95

Specific reserve

Surplus reserves 241144854.93 241144854.93

General reserve

Retained earnings 1844849419.83 1671121562.98

Total equity attributable to owners of

4098839837.343938260291.97

the Company as the parent

Non-controlling interests 288483643.71 289068877.44

Total owners’ equity 4387323481.05 4227329169.41

Total liabilities and owners’ equity 5725419099.38 6182498050.43

Legal representative: Liu Zhengyu Chief Financial Officer: Wang Jianfei Head of the financial department: Qiao Yanjun

2. Consolidated Income Statement

Unit: RMB

Item Q1 2022 Q1 2021

1. Revenues 272594952.10 415282352.53

Including: Operating revenue 272594952.10 415282352.53

Interest income

Insurance premium income

Fee and commission

income

2. Costs and expenses 218394023.67 297519627.24

6ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. First Quarterly Report 2022

Including: Cost of sales 152460417.85 183741767.38

Interest expense

Fee and commission

expense

Surrenders

Net insurance claims paid

Net amount provided as

insurance contract reserve

Expenditure on policy

dividends

Reinsurance premium

expense

Taxes and levies 48242285.55 95365107.93

Selling expense 4783896.07 3714962.78

Administrative expense 14926706.67 18464662.11

R&D expense

Finance costs -2019282.47 -3766872.96

Including: Interest

expense

Interest

2135908.574206960.54

income

Add: Other income 330714.74 341986.50

Return on investment (“-” for loss) 165739875.11

Including: Share of profit or loss

of joint ventures and associates

Income from the

derecognition of financial assets at

amortized cost (“-” for loss)

Exchange gain (“-” for loss)

Net gain on exposure hedges (“-”

for loss)

Gain on changes in fair value (“-”

2986182.85

for loss)

Credit impairment loss (“-” for

53211.01586866.00

loss)

Asset impairment loss (“-” for loss) -268941.60

Asset disposal income (“-” for

loss)

3. Operating profit (“-” for loss) 223041970.54 118691577.79

Add: Non-operating income 400002.42 881138.94

Less: Non-operating expense 1423.06 22085.33

4. Gross profit (“-” for loss) 223440549.90 119550631.40

Less: Income tax expense 61821128.60 31589874.59

5. Net profit (“-” for net loss) 161619421.30 87960756.81

5.1 By operating continuity

5.1.1 Net profit from continuing

161619421.3087960756.81

operations (“-” for net loss)

5.1.2 Net profit from discontinued

operations (“-” for net loss)

5.2 By ownership

5.2.1 Net profit attributable to

162278083.5988040167.60

owners of the Company as the parent

5.2.1 Net profit attributable to

-658662.29-79410.79

non-controlling interests

6. Other comprehensive income net of -1625109.66 3671125.59

7ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. First Quarterly Report 2022

tax

Attributable to owners of the Company

-1698538.222308492.48

as the parent

6.1 Items that will not be

-1869871.54-261296.43

reclassified to profit or loss

6.1.1 Changes caused by

remeasurements on defined benefit

schemes

6.1.2 Other comprehensive

income that will not be reclassified to

profit or loss under the equity method

6.1.3 Changes in the fair value of

-1869871.54-261296.43

investments in other equity instruments

6.1.4 Changes in the fair value

arising from changes in own credit risk

6.1.5 Other

6.2 Items that will be reclassified to

171333.322569788.91

profit or loss

6.2.1 Other comprehensive

income that will be reclassified to profit

or loss under the equity method

6.2.2 Changes in the fair value of

other debt investments

6.2.3 Other comprehensive

income arising from the reclassification

of financial assets

6.2.4 Credit impairment

allowance for other debt investments

6.2.5 Reserve for cash flow

hedges

6.2.6 Differences arising from the

translation of foreign

171333.322569788.91

currency-denominated financial

statements

6.2.7 Other

Attributable to non-controlling

73428.561362633.11

interests

7. Total comprehensive income 159994311.64 91631882.40

Attributable to owners of the Company

160579545.3790348660.08

as the parent

Attributable to non-controlling

-585233.731283222.32

interests

8. Earnings per share

8.1 Basic earnings per share 0.1604 0.0870

8.2 Diluted earnings per share 0.1604 0.0870

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

the combinations was RMB0.00 with the amount for the same period of last year being RMB0.00.Legal representative: Liu Zhengyu Chief Financial Officer: Wang Jianfei Head of the financial department: Qiao Yanjun

3. Consolidated Cash Flow Statement

Unit: RMB

Item Q1 2022 Q1 2021

1. Cash flows from operating activities:

Proceeds from sale of commodities

135938494.95560507403.05

and rendering of services

Net increase in customer deposits and

deposits from other banks and financial

institutions

8ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. First Quarterly Report 2022

Net increase in borrowings from the

central bank

Net increase in loans from other

financial institutions

Premiums received on original

insurance contracts

Net proceeds from reinsurance

Net increase in deposits and

investments of policy holders

Interest fees and commissions

received

Net increase in loans from other

banks and financial institutions

Net increase in proceeds from

repurchase transactions

Net proceeds from acting trading of

securities

Tax and levy rebates 79547.26

Cash generated from other operating

165092287.4020892855.06

activities

Subtotal of cash generated from

301110329.61581400258.11

operating activities

Payments for commodities and

118807563.0472720627.25

services

Net increase in loans and advances to

customers

Net increase in deposits in the central

bank and other banks and financial

institutions

Payments for claims on original

insurance contracts

Net increase in loans to other banks

and financial institutions

Interest fees and commissions paid

Policy dividends paid

Cash paid to and for employees 30832704.29 44057215.25

Taxes and levies paid 481133071.14 80204553.44

Cash used in other operating

131399508.0680961670.44

activities

Subtotal of cash used in operating

762172846.53277944066.38

activities

Net cash generated from/used in

-461062516.92303456191.73

operating activities

2. Cash flows from investing activities:

Proceeds from disinvestment

Return on investment 813960.00

Net proceeds from the disposal of

fixed assets intangible assets and other 18186211.00

long-lived assets

Net proceeds from the disposal of

121650555.74

subsidiaries and other business units

Cash generated from other investing

16000000.00

activities

Subtotal of cash generated from

156650726.74

investing activities

Payments for the acquisition of fixed

assets intangible assets and other 59420.24 182616.13

long-lived assets

Payments for investments

Net increase in pledged loans granted

9ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. First Quarterly Report 2022

Net payments for the acquisition of

subsidiaries and other business units

Cash used in other investing

activities

Subtotal of cash used in investing

59420.24182616.13

activities

Net cash generated from/used in

156591306.50-182616.13

investing activities

3. Cash flows from financing activities:

Capital contributions received

Including: Capital contributions by

non-controlling interests to subsidiaries

Borrowings received

Cash generated from other financing

activities

Subtotal of cash generated from

financing activities

Repayment of borrowings

Interest and dividends paid

Including: Dividends paid by

subsidiaries to non-controlling interests

Cash used in other financing

activities

Subtotal of cash used in financing

activities

Net cash generated from/used in

financing activities

4. Effect of foreign exchange rates

-508619.70-45379.25

changes on cash and cash equivalents

5. Net increase in cash and cash

-304979830.12303228196.35

equivalents

Add: Cash and cash equivalents

612293635.152669103926.82

beginning of the period

6. Cash and cash equivalents end of the

307313805.032972332123.17

period

(II) Independent Auditor’s Report

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

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

ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.

30 April 2022

10