ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE
& PROPERTIES (GROUP) CO. LTD.ANNUAL REPORT 2024
[22 March 2025]
1ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
ANNUAL 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.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 are reminded to exercise caution when making
investment decisions.The Company has no final dividend plan either in the form of cash or stock.
2ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual 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 ........ 10
Part IV Corporate Governance ....................... 32
Part V Environmental and Social Responsibility ..... 51
Part VI Significant Events ......................... 52
Part VII Share Changes and Shareholder Information.. 61
Part VIII Preference Shares ........................ 68
Part IX Bonds....................................... 68
Part X Financial Statements ........................ 69
3ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Documents Available for Reference
1. The financial statements with the personal signatures and stamps of the Company’s general manager Chief Financial Officer and
head of the financial department;
2. The original of the Auditor’s Report with the stamp of the CPA firm as well as the personal signatures and stamps of the CPAs;
3. 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. Annual Report 2024
Definitions
Term Refers to Definition
The State-owned Assets Supervision and
“Shenzhen SASAC” or the “MunicipalRefers to Administration Commission of the People’sSASAC”
Government of Shenzhen Municipal
SIHC Refers to Shenzhen Investment Holdings Co. Ltd
Shenzhen Special Economic Zone Real Estate &
Properties (Group) Co. Ltd. and its consolidated
The “Company” the “Group” “SPG” or “we” Refers to
subsidiaries except where the context otherwise
requires
Shenzhen Property Management Refers to Shenzhen Property Management Co. Ltd.Petrel Hotel Refers to Shenzhen Petrel Hotel Co. Ltd.Zhentong Engineering Refers to Shenzhen Zhentong Engineering Co. Ltd.Shenzhen Huazhan Construction Supervision Co.Huazhan Construction Supervision Refers to
Ltd.Guangdong Jianbang Group (Huiyang) Industrial
Jianbang Group Refers to
Co. Ltd.Shenzhen SPG Chuanqi Real Estate Development
Chuanqi Real Estate Development Refers to
Co. Ltd.Guangmingli Refers to SPG Guangmingli
Linxinyuan Refers to SPG Linxinyuan
Cuilinyuan Refers to SPG Cuilinyuan
5ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual 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. 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
Floors A46-A48 and B46-B48 SPG Plaza No. 3005 Renmin South Road Jiabei Community
Registered address
Nanhu Subdistrict Luohu District Shenzhen
Zip code 518001
Changes of the registered
N/A
address
Address Floors A46-A48 SPG Plaza No. 3005 Renmin South Road Shenzhen
Zip code 518001
Company website http://www.sfjt.com.cn
Email address spg@sfjt.sihc.com.cn
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
Shenzhen Guangdong P.R. China Shenzhen Guangdong 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 Media for Information Disclosure and Place where this Report Is Lodged
Stock exchange website where this Report is disclosed Shenzhen Stock Exchange (http://www.szse.cn/)
Domestic: Securities Times China Securities Journal and
Newspaper and website where this Report is disclosed
http://www.cninfo.com.cn Overseas: Ta Kung Pao (HK)
47/F SPG Plaza 3005 Renmin South Road Luohu District Shenzhen
Place where this Report is lodged
Guangdong P.R.China
IV Change to Company Registered Information
Unified social credit code 91440300192179585N
Change to principal activity of the Company
No change
since going public (if any)
On 24 March 1999 the controlling shareholder was changed from Shenzhen
Every change of controlling shareholder since
Investment Management Co. Ltd. to Shenzhen Construction Investment
incorporation (if any)
Holdings Co. Ltd. And on 14 February 2006 it was changed to Shenzhen
6ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Investment Holdings Co. Ltd.V Other Information
The independent audit firm hired by the Company:
Name Pan-China Certified Public Accounts LLP
128 Xixi Road Lingyin Street Xihu District Hangzhou
Office address
Zhejiang Province China
Accountants writing signatures Wang Huansen and Cai Xiaodong
The independent sponsor hired by the Company to exercise constant supervision over the Company in the Reporting Period:
□ Applicable □Not applicable
The independent financial advisor hired by the Company to exercise constant supervision over the Company in the Reporting Period:
□ Applicable □Not applicable
VI Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.□ Yes □No
2024-over-2
023 change
202420232022
(%)
Operating revenue (RMB) 407022191.44 530887720.68 -23.33% 634384561.42
Net profit attributable to the listed
-176710947.65-250839542.0929.55%153718805.57
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before -197979921.69 -267984286.36 26.12% 21160405.11
exceptional gains and losses (RMB)
Net cash generated from/used in
-127403949.791045037248.19-112.19%-675775998.76
operating activities (RMB)
Basic earnings per share (RMB/share) -0.1747 -0.2479 29.53% 0.1519
Diluted earnings per share (RMB/share) -0.1747 -0.2479 29.53% 0.1519
Weighted average return on equity (%) -4.91% -6.52% 24.69% 3.88%
Change of
31
December
31 December 2024 31 December 2023 2024 over 31 December 2022
31
December
2023(%)
Total assets (RMB) 5987780656.67 6485312507.46 -7.67% 5689769802.18
Equity attributable to the listed
3512112493.423691082484.20-4.85%4004240547.70
company’s shareholders (RMB)
Indicate by tick mark whether the lower of the net profit attributable to the listed company’s shareholders before and after
exceptional gains and losses was negative for the last three accounting years and the latest independent auditor’s report indicated that
there was uncertainty about the Company’s ability to continue as a going concern.
7ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
□ Yes □No
Indicate by tick mark whether the lower of the net profit attributable to the listed company’s shareholders before and after
exceptional gains and losses was negative.□Yes □ No
Item 2024 2023 Remark
Operating revenue (RMB) 407022191.44 530887720.68 N/A
Amount deducted from
0.00 0.00 N/A
operating revenue (RMB)
Operating revenue after
407022191.44 530887720.68 N/A
deduction (RMB)
VII Accounting Data Differences under China’s Accounting Standards for Business
Enterprises (CAS) and International Financial Reporting Standards (IFRS) and Foreign
Accounting Standards
1. Net Profit and Equity under CAS and IFRS
□ Applicable □Not applicable
There was no difference of the net profits and the net assets that were disclosed in the financial statement under the IFRSs with those
under the PRC GAAP during the Reporting Period.
2. Net Profit and Equity under CAS and Foreign Accounting Standards
□ Applicable □Not applicable
No difference for the Reporting Period.VIII Key Financial Information by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 59214773.99 75010345.44 74007078.57 198789993.44
Net profit attributable
to the listed company’s 1896582.37 3726209.02 -604146.31 -181729592.73
shareholders
Net profit attributable
to the listed company’s
shareholders before -3975227.45 -1221900.10 -5743682.96 -187039111.18
exceptional gains and
losses
Net cash generated
from/used in operating -90276362.78 -18173169.28 -29202502.65 10248084.92
activities
Indicate by tick mark whether any of the quarterly financial data in the table above or their summations differs materially from what
have been disclosed in the Company’s quarterly or interim reports.□ Yes □No
IX Exceptional Gains and Losses
□Applicable □ Not applicable
8ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Unit: RMB
Item 2024 2023 2022 Note
Gain or loss on disposal of non-current assets
740874.429940254.23161542599.57
(inclusive of impairment 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
753298.54440049.96559803.19
given in accordance with defined criteria and in
compliance with government policies and have a
continuing impact on the Company's profit or loss)
Changes in
fair values
Gain or loss on assets entrusted to other entities for arising from
18461736.597985840.509129650.51
investment or management investment
in monetary
fund
Reversed portions of impairment allowances for
receivables which are tested individually for 3994030.79
impairment
Gain or loss on debt restructuring 2610128.31
Non-operating income and expense other than the
2170518.43393461.441094190.56
above
Less: Income tax effects 863081.95 5639314.23 41451680.41
Non-controlling interests effects (net of tax) -5628.01 -30421.58 926291.27
Total 21268974.04 17144744.27 132558400.46 --
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
Item Amount involved (RMB) Reason
This item is recognised as a recurrent
Return of handling fee for personal income gain or loss because it occurs
86280.28
tax withheld consistently from year to year and is not
episodic in nature
This item is recognised as a recurrent
gain or loss because it occurs
Over-deduction in the calculation of VAT 2627.57
consistently from year to year and is not
episodic in nature
9ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Part III Management Discussion and Analysis
I Industry Overview for the Reporting Period
The Company is subject to the information disclosure requirements for the real estate industry in the Disciplinary and Regulatory
Guideline No. 3 of the Shenzhen Stock Exchange for Listed Companies—Industry-specific Information Disclosure.During the reporting period the adverse impact brought by changes in the external environment continued to
deepen. In response to multiple difficulties and challenges China has taken proactive and effective measures to
strengthen the implementation of existing policies and optimize macro-control measures in a timely manner In
2024 China’s overall economic performance was stable and making progress while maintaining stability. The
main goals and tasks of economic and social development for the whole year were successfully completed
high-quality development was promoted solidly and the new productive force developed steadily. From the
prospective of industry the national new housing market has continued to adjust as a whole. Driven by the
"price-for-volume" approach the pre-owned home market has maintained a certain scale of transactions but the
overall slow recovery momentum of market also poses many challenges.II Principal Activity of the Company in the Reporting Period
The Company is subject to the information disclosure requirements for the real estate industry in the Disciplinary and Regulatory
Guideline No. 3 of the Shenzhen Stock Exchange for Listed Companies—Industry-specific Information Disclosure.The Company is specialised in residential real estate development with on-sale projects mainly distributed in
Shenzhen Huizhou and Shantou. These include Cuilinyuan and Guangmingli in Shenzhen Linxinyuan close to
Shenzhen in Huizhou and Tianyuewan in Shantou. The project under construction is Linxinyuan.New additions to the land bank:
Considerati
Total land on of the
Floor area How the The
Name of land Planned Site area price Company’s
Location with plot land is Company’s
lot or project use of land (㎡) (RMB’000 interest
ratio (㎡) 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 ㎡)
Shantou Xinfeng Building 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 10.7 26.4 26.4
Development status of major projects:
Name The Time Plann Floor Cumu Expec Cumu
% % Site
City/reg of Locati Comp for ed area lativel ted lative
Status devel constr area
ion projec on any’s comm floor compl y total invest
oped ucted (㎡)
t intere encem area eted compl invest ment
10ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
st ent of with in the eted ment (RMB
constr plot Curre floor (RMB ’0000
uction ratio nt area ’0000 )
(㎡) Period (㎡) )
(㎡)
Frame
Linxi Under
work 11
Huizho nyuan Huiya 51.00 constr 96.00 15976 1157 1119
in June 64278 0 0
u Phase ng % uction % 1 50 05
constr 2021
I '
uction
Guan 19
Guan
Shenzhe gming Comp 100.0 Januar 100.0 53657 53657 1517 1534
gming 100% 10721 53605
n Distri letion 0% y 0% .1 .1 58 55.98
li
ct 2022
Sales status of major projects:
Pre-sale Pre-sale
Floor
Cumula /sales Floor /sales
Floor Floor area Cumula
tively revenue area revenue
The area area pre-sold tively
Name pre-sold generat settled settled
City/regio Locatio Compa with availabl /sold in settled
of Status /sold e in the in the in the
n n ny’s plot e for the floor
project floor Current Current Current
interest ratio sale Current area
area Period Period Period
(㎡) (㎡) Period (㎡)
(㎡) (RMB’ (㎡) (RMB’
(㎡)
0000)0000)
Longga
Cuiliny Ready 100.00 54393.3 2084.7 54393.3 1969.2
Shenzhen ng 60111 56137 1171.52 1171.52
uan for sale % 8 6 8 2
District
Tianyue Chaoya
Ready 100.00 120678. 120147.Shantou wan ng 153470 160372 1413.04 846 1729.57 971.74
for sale % 54 47
Phase I District
Tianyue Chaoya
Ready 100.00 42113.4 41859.8 2628.0
Shantou wan ng 127770 137059 5400 2935 5288.17
for sale % 2 7 4
Phase II District
Linxiny
Huiyan On
Huizhou uan 51.00% 159761 159761
g pre-sale
Phase I
Guang
Guang Ready 100.00 9787.6
Shenzhen ming 53605 51975 34572 4599 10669 4603.18 4603.18
mingli for sale % 8
District
Rental status of major projects:
The Company’s Rentable area Cumulative Average
Name of project Location Status
interest (㎡) rented area (㎡) 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% 58971.9 29504.48 50.03%
Podium of SPG
Shenzhen Commercial 100.00% 19886.3 14463.75 72.73%
Plaza
Wenjin Garden Shenzhen Commercial 100.00% 3531.6 3531.6 100.00%
11ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Primary land development:
□ Applicable □Not applicable
Financing channels:
Financing cost Maturity structure
Ending balance
Financing range/average
of financings
channels: financing cost
(RMB'0000) Within 1 year 1-2 years 2-3 years Over 3 years
(RMB'0000)
Bank loans 9587.86 3.5%-4.2% 3360.50 12.52 12.52 6202.33
Total 9587.86 3360.50 12.52 12.52 6202.33
Development strategy and operating plan for the coming year:
Provision of guarantees for homebuyers on bank mortgages:
□Applicable □ Not applicable
Guaranteed Financial institutions for Guaranteed borrowing
Expiry date of guarantee Remark
unit loans amount (RMB'0000)
Until the property ownership certificate
Homebuyer China Construction Bank 43.50 is registered as collateral and handed Shanglinyuan
over to bank for keeping
Until the property ownership certificate
Agricultural Bank of
Homebuyer 11911.65 is registered as collateral and handed Cuilinyuan
China
over to bank for keeping
Until the property ownership certificate Chuanqi
Agricultural Bank of
Homebuyer 1998.68 is registered as collateral and handed Donghu
China
over to bank for keeping Mingyuan
China Construction
Bank Bank of
Communications
Until the property ownership certificate
Industrial and
Homebuyer 2407.00 is registered as collateral and handed Tianyuewan
Commercial Bank of
over to bank for keeping
China Bank of China
China Everbright Bank
Postal Savings Bank
Industrial and
Commercial Bank of
China Huaxia Bank
Rural Commercial Bank Until the property ownership certificate
Homebuyer Agricultural Bank of 48581.04 is registered as collateral and handed Guangmingli
China Postal Savings over to bank for keeping
Bank of China China
Merchants Bank Bank
of China
12ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Subtotal 64941.87
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
Compatibilit
Investment As % of the Cumulative
Name of Type of As % of total Disinvestme y of actual
amount peak of returns
project investor investment nt investment
(RMB) project funds (RMB)
and returns
Directors
supervisors
or senior
Linxinyuan 8950000.00 39.25% 0.90% 0.00 N/A N/A
management
of the
Company
III 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.During the reporting period the Company successively won the titles of "Star Enterprise for High-Quality
Development in Luohu District" and "2024 Brand Value Enterprise of Shenzhen Real Estate Development
Industry" and was listed in the "Top 20 Bay Area Listed Companies for Green Governance 2024". The
Guangmingli project won honors such as "Excellent Site for Safety Production and Civilized Construction in
Shenzhen" and "Demonstration Site for Safety and Civilized Construction in Guangming District".IV Core Business Analysis
1. Overview
In 2024 facing an increasingly complex external environment and challenging reform and development tasks the
Company's Board of Directors earnestly implemented the decisions and deployments of the State-owned Assets
Supervision of Shenzhen Municipality and Shenzhen Investment Holdings Co. Ltd. All employees united as one
maintaining determination and striving forward resulting in certain achievements across various areas of work.i. Achieving good performance in the core business with targeted and joint efforts. The Guangmingli project
strictly controlled the progress of key points ensured safety and quality. With a focus on customer needs the
13ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
project was continuously optimized from the perspectives of green construction and landscape. As a result the
residential properties were sold out on the opening day and were delivered ahead of schedule. Additionally
existing projects such as Cuilinyuan and Tianyuewan achieved 108 new sales. The Group's leasing business
completed 106.4% of its annual target.ii. Achieving positive results in risk prevention and resolution by securing the baseline and concentrating
on tackling tough issues. The series of litigation cases concerning Linxinyuan made breakthroughs effectively
safeguarding the Company's legitimate rights and interests. Throughout the year a total of 97 safety production
inspections were conducted with all identified hazards rectified and closed out in strict accordance with
established processes and standards. During the reporting period no major petition or public opinion incidents
occurred within the Group creating a harmonious and stable environment for enterprise development.iii. Focusing on goals and expanding initiatives to deliver encouraging results in potential tapping and
growth expansion. Petrel Hotel has achieved annul predetermined objectives in revenue and profits while
Huazhan Construction Supervision successfully turned losses into profits. Zhentong Engineering met its annual
revenue objectives and the Shantou branch completed the tax refund for the Jinyedao project. During the
reporting period the Company efficiently use storage resources completed the transformation and upgrade of the
Shantou Zhongshan Eastern Market. Properties such as Jinyedao and Haitiange as well as Shenzhen Jinghua
Optoelectronic Device Factory have been listed for sale on the stock exchange. A new round of U.S. land sale
efforts was restarted. The disposal work of "two non two assets" progressed smoothly and the deregistration of
Fresh Peak Real Estate Company was completed.(IV) Strengthening foundations and focusing control to achieve significant improvements in capabilities.The Company has revised the governance systems including the Articles of Association and Rules of Procedures
for the General Meeting of Shareholders formulated the "Three Majors and One Large" decision-making
management method and deepened the development of the compliance system. The ESG report has achieved
regular disclosure which effectively enhances the Company's governance capabilities. The Company enhanced its
full-chain talent management mechanism of "Attracting Cultivating Employing Retaining" talent. It completed
optimization of organizational structure and fixed-position establishment for affiliated enterprises and
continuously improved human resource management levels. It 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 resulting in a steady improvement in professional capabilities.(V) Raising awareness and focusing on planning to promote continuous exploration and promotion of
future development. The Company always maintains a high level of attention to the listing regulatory rules and
capital market policy dynamics. It actively strengthens communication with controlling shareholders capital
platforms within the system and professional intermediary institutions. By striving to expand high-quality project
resources with feasibility and high potential the Company focuses on planning and steadily advances the future
sustainable development of the enterprise with an aim of seizing opportunities in a complex and changeable
market environment.vi. The guiding and orienting role is more prominent with party building as guidance and integrated efforts.The Company adheres to high-quality party building to lead enterprise development. Over the year it held 34
party committee meetings in which 180 major matters were reviewed and pre-studied effectively playing the
leadership role of "guiding the direction controlling the overall situation and ensuring implementations". The
Company promoted a two-way integration of party building and business development collaborating with local
streets communities and the Luohu District Bureau of Commerce to explore new models for integrating party
building with business operations. Furthermore it deepened the comprehensive strict governance of the party
carried out in-depth study and education on party discipline and created a fair just and upright environment for
entrepreneurship and innovation.
2. Revenue and Cost Analysis
(1) Breakdown of Operating Revenue
Unit: RMB
20242023
As % of total As % of total Change (%)
Operating revenue Operating revenue
operating revenue operating revenue
14ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
(%)(%)
Total 407022191.44 100% 530887720.68 100% -23.33%
By operating division
Shenzhen 162523053.49 39.93% 118580624.34 22.34% 37.06%
Engineering and
162184666.1239.85%324243778.5061.08%-49.98%
construction
Property
3644981.080.90%3491329.170.66%4.40%
management
Rental service 78669490.75 19.33% 84571988.67 15.93% -6.98%
By product category
Residential units 142671853.48 35.05% 108943731.16 20.52% 30.96%
Shops and parking
19851200.014.88%9636893.181.82%105.99%
lots
Other 244499137.95 60.07% 412307096.34 77.66% -40.70%
By operating segment
Guangdong
406326508.5499.83%530197455.5799.87%-23.36%
Province
Overseas 695682.90 0.17% 690265.11 0.13% 0.78%
By marketing model
Principal
399806208.8998.23%524099615.6398.72%-23.72%
operations
Other 7215982.55 1.77% 6788105.05 1.28% 6.30%
(2) Operating Division Product Category or Operating Segment Contributing over 10% of Operating Revenue or Operating
Profit
□Applicable □ Not applicable
Unit: RMB
Gross YoY change in YoY change in YoY change in
Operating revenue Cost of sales profit operating cost of sales gross profit
margin revenue (%) (%) margin (%)
By operating division
Shenzhen 162523053.49 127086267.87 21.80% 37.06% 58.39% -32.59%
Engineering
and 162184666.12 156523068.19 3.49% -49.98% -50.64% 57.92%
construction
Rental service 78669490.75 46310276.88 41.13% -6.98% 3.26% -12.43%
By product category
Residential
142671853.48117534359.6917.62%30.96%57.53%-44.10%
units
By operating segment
Guangdong
406326508.54331635385.1918.38%-23.36%-27.17%30.17%
Province
By marketing model
Core business data of the prior year restated according to the changed statistical caliber for the Reporting Period:
□ Applicable □Not applicable
(3) Whether Revenue from Physical Sales Is Higher than Service Revenue
□Yes □ No
15ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Operating division Item Unit 2024 2023 Change (%)
Sales volume RMB’0000 22881.00 10910.00 109.73%
Property sales Output RMB’0000 22206.96 15892.00 39.74%
Inventory RMB’0000 440320.07 430663.00 2.24%
Any over 30% YoY movements in the data above and why:
□Applicable □ Not applicable
Compared to 2023 there have been new increases and breakthroughs in real estate development sales and investment.
(4) Execution Progress of major signed sales or purchase contracts in the Reporting Period
□ Applicable □Not applicable
(5) Breakdown of Cost of Sales
Operating division
Unit: RMB
20242023
Operating
Item
division As % of total cost As % of total cost
Change (%)
Operating revenue Operating revenue
of sales (%) of sales (%)
Shenzhen 127086267.87 38.24% 80235849.12 18.04% 58.39%
Engineering
and 156523068.19 47.10% 317088117.19 71.29% -50.64%
construction
Property
2406037.360.72%2626431.490.59%-8.39%
management
Rental service 46310276.88 13.94% 44847244.30 10.08% 3.26%
Note
The sales volume increased by 58.39% year-on-year mainly due to the increase in real estate sales; affected by the market the
construction workload decreased year-on-year.
(6) Changes in the scope of consolidated financial statements for the Reporting Period
□Yes □ No
For details on changes in the scope of consolidation during the reporting period please see "VI Changes in the Scope of
Consolidation" of "Part X Financial Statements"
(7) Major changes to the business scope or product or service range in the Reporting Period
□ Applicable □Not applicable
(8) Major Customers and Suppliers
Major customers:
Total sales to top five customers (RMB) 91301629.97
Total sales to top five customers as % of total sales of the
22.43%
Reporting Period (%)
Total sales to related parties among top five customers as % of 0.00%
16ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
total sales of the Reporting Period (%)
Information about top five customers:
Sales revenue contributed for As % of total sales revenue
No. Customer
the Reporting Period (RMB) (%)
1 Legal person A 43254820.30 10.63%
2 Legal person B 18155976.05 4.46%
3 Legal person C 14915485.72 3.66%
4 Legal person D 7920319.31 1.95%
5 Legal person E 7055028.59 1.73%
Total -- 91301629.97 22.43%
Other information about major customers:
□ Applicable □Not applicable
Major suppliers:
Total purchases from top five suppliers (RMB) 304853933.15
Total purchases from top five suppliers as % of total purchases
70.21%
of the Reporting Period (%)
Total purchases from related parties among top five suppliers
0.00%
as % of total purchases of the Reporting Period (%)
Information about top five suppliers:
Purchase in the Reporting
No. Supplier As % of total purchases (%)
Period (RMB)
1 Legal person A 227853187.23 52.48%
2 Legal person B 31576276.31 7.27%
3 Legal person C 24711750.43 5.69%
4 Legal person D 11995638.77 2.76%
5 Legal person E 8717080.41 2.01%
Total -- 304853933.15 70.21%
Other information about major suppliers:
□ Applicable □Not applicable
3. Expense
Unit: RMB
2024 2023 Change (%) Reason for any significant change
Selling Mainly because the Guangmingli project is almost
13164672.9321803202.14-39.62%
expense sold out reducing marketing expenses.Administ
Mainly due to the completion of projects leading to
rative 70118532.01 55965931.72 25.29%
labour costs for engineering project being expensed.expense
Finance
-5502747.12-5231991.59-5.17%
costs
17ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
4. R&D Investments
□ Applicable □Not applicable
5. Cash Flows
Unit: RMB
Item 2024 2023 Change (%)
Subtotal of cash generated from
475123495.051950984549.76-75.65%
operating activities
Subtotal of cash used in
602527444.84905947301.57-33.49%
operating activities
Net cash generated from/used in
-127403949.791045037248.19-112.19%
operating activities
Subtotal of cash generated from
1866393.80139173390.10-98.66%
investing activities
Subtotal of cash used in
91547315.83601475412.00-84.78%
investing activities
Net cash generated from/used in
-89680922.03-462302021.9080.60%
investing activities
Subtotal of cash generated from
1563000.00169486610.82-99.08%
financing activities
Subtotal of cash used in
122813684.4183583781.5646.93%
financing activities
Net cash generated from/used in
-121250684.4185902829.26-241.15%
financing activities
Net increase in cash and cash
-338236158.91668781343.87-150.57%
equivalents
Explanation of why any of the data above varies significantly:
□Applicable □ Not applicable
Cash inflow from operating activities decreased year-on-year mainly driven by property sales.Cash used in operating activities decreased year on year primarily driven by the decreased development and construction of real
estate projects.Net cash flow from investing activities increased year-on-year mainly driven by decreased purchase of financial products.Cash inflow from financing activities decreased year-on-year mainly driven by decreased new bank borrowing raised this period.Cash outflow from financing activities increased year-on-year mainly driven by repaying bank borrowings in this period.Reason for any big difference between the net operating cash flow and the net profit for this Reporting Period
□Applicable □ Not applicable
There is a big difference between the net operating cash flow and the net profit for the year primarily due to the long time span
between property development sales and revenue recognition.V Analysis of Non-Core Businesses
□ Applicable □Not applicable
18ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
VI Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
31 December 2024 1 January 2024
Change in
As a % As a % Reason for any percentage
Operating revenue of total Operating revenue of total significant change (%)
assets assets
Mainly driven by
Monetary assets 529242725.36 8.84% 871019268.83 13.43% -4.59% repaying bank
borrowings this year.Accounts
56672795.520.95%75100970.831.16%-0.21%
receivable
Contract assets 30888723.09 0.52% 27352596.92 0.42% 0.10%
Inventories 3636840229.34 60.74% 3915215921.96 60.37% 0.37%
Investment
515925116.548.62%541542136.178.35%0.27%
property
Long-term equity
0.00%0.00%0.00%
investments
Fixed assets 17489207.57 0.29% 19928049.77 0.31% -0.02%
Construction in
0.00%0.00%0.00%
progress
Right-of-use
0.00%99641.480.00%0.00%
assets
Short-term
1563000.000.03%3550000.000.05%-0.02%
borrowings
Mainly driven by the
revenue from the
Contract liabilities 1298146232.35 21.68% 1291448591.28 19.91% 1.77% transfer of advanced
sales proceeds from
property sales.Mainly driven by
Long-term
62273677.82 1.04% 179431851.02 2.77% -1.73% repaying bank
borrowings
borrowings this year.Lease liabilities 0.00% 0.00% 0.00%
Mainly driven by the
Held-for-trading
987801938.51 16.50% 879340201.92 13.56% 2.94% purchase of money
financial assets
market funds.Accounts payable 464488982.30 7.76% 443259768.78 6.83% 0.93%
Taxes payable 27554810.01 0.46% 40908986.48 0.63% -0.17%
Other payables 561016653.17 9.37% 554469229.59 8.55% 0.82%
Indicate whether overseas assets account for a high proportion of total assets.□ Applicable □Not applicable
2. Assets and Liabilities at Fair Value
□Applicable □ Not applicable
Unit: RMB
Item Beginning Gain/loss Cumulative Impairment Purchased Sold in the Other Ending
19ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
amount on fair-value allowance in the Reporting changes amount
fair-value changes for the Reporting Period
changes in charged to Reporting Period
the equity Period
Reporting
Period
Financial assets
Held-for-tr
ading
financial
assets 87934020 18461736. 90000000. 98780193
(excluding 1.92 59 00 8.51
derivative
financial
assets)
Investment
s in other 14324411. 14697341.
372929.83
equity 35 18
instruments
Total of the 89366461 18461736. 90000000. 10024992
372929.830.000.000.00
above 3.27 59 00 79.69
Financial
0.000.000.000.000.000.000.000.00
liabilities
Other change
Significant changes to the measurement attributes of the major assets in the Reporting Period:
□ Yes □No
3. Restricted Asset Rights as at the Period-End
Item Ending carrying value Reasons for restriction
Construction funds for public facility projects within and around the urban
Monetary assets 5817217.78 renewal project in Longgang District Shenzhen as well as the land reclamation
costs associated with the Guangmingli project.Monetary assets 2306548.48 Frozen in a lawsuit case
Monetary assets 50155.58 Construction deposit
Monetary assets 158549.08 Stop payments suspend accounts
Accounts
4770702.79 Pledged for short-term borrowings
receivable
Investment
38505029.10 Mortgaged for borrowings
property
Inventories 161509611.70 Supplier litigation preservation
Total 213117814.51
VII Investments Made
1. Total Investment Amount
□Applicable □ Not applicable
20ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Total investment amount in the Total investment amount in last year
Change (%)
Reporting Period (RMB) (RMB)
284195236.43190310000.0049.33%
2. Significant equity investments made in the Reporting Period
□ Applicable □Not applicable
3. Major non-equity investments ongoing in the Reporting Period
□ Applicable □Not applicable
4. Financial investments
(1) Securities investments
□ Applicable □Not applicable
No such cases in the Reporting Period.
(2) Investments in derivative financial instruments
□ Applicable □Not applicable
No such cases in the Reporting Period.
5. Use of funds raised
□ Applicable □Not applicable
No such cases in the Reporting Period.VIII Sale of Major Assets and Equity Interests
1. Sale of major assets
□ Applicable □Not applicable
No such cases in the Reporting Period.
2. Sale of major equity interests
□ Applicable □Not applicable
IX Principal Subsidiaries and Joint Stock Companies
□Applicable □ Not applicable
Principal subsidiaries and joint stock companies with an over 10% effect on the Company’s net profit:
Unit: RMB
Relationshi Main
Company Registered Operating Operating
p with the business Total assets Net assets Net profit
name capital revenue profit
Company scope
Guangdong
Jianbang Property
Subsidiary 2800000 15530096 56049220. 0.00 -4096727 -4096946
Group sales
87.381748.9314.91
(Huiyang)
21ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Industrial
Co. Ltd.Shenzhen
SPG
Chuanqi Property 25712241 99792838 97876806. 12152332. 7182106.1
Subsidiary 30000000
Real Estate sales 34.35 5.72 41 94 5
Developme
nt Co. Ltd.Shenzhen
SPG
Property 10876003 63721350. 21667635. 9090392.1 8257794.1
Longgang Subsidiary 30000000
sales 6.68 71 63 3 0
Developme
nt Co. Ltd.Shantou
SEZ
Wellam
FTY Property 91226120.4 92308874. 40068722. -1434992. 4788342.1
Subsidiary 449756.73
Building sales 4 96 24 27 4
Developme
nt Co.Ltd.Shantou
Huafeng
Property 72171817 -4755854 36425552. -5971176 -6038628
Real Estate Subsidiary 80000000
sales 9.26 9.01 67 2.32 2.62
Developme
nt Co. Ltd.Great Wall
Property 20196652. -9355899 -351389.2 -351389.2
Estate Co. Subsidiary 2051146 695682.90
sales 16 3.43 3 3
Inc. (U.S.)
Shenzhen Installation
Zhentong and 12196787 15470829. 20072028 -8088979. -6099725.Subsidiary 10000000
Engineerin maintenanc 0.01 07 8.29 47 20
g Co. Ltd. e
Shenzhen
Petrel Hotel 60455700. 41385380. 19954558. 2547123.3 2456742.6
Subsidiary 30000000
Hotel Co. service 01 60 42 9 0
Ltd.Shenzhen
Huazhan
Constructio
Constructio 11255389. 10637471. 3208299.1
Subsidiary n 8000000 197086.31 166024.93
n 52 67 2
supervision
Supervisio
n Co. Ltd.Investment
Xin Feng
and 34233305 -2377639 -2222490. -2222490.Enterprise Subsidiary 502335 0.00
manageme 8.67 22.26 10 10
Co. Ltd.nt
Subsidiaries obtained or disposed in the Reporting Period:
□Applicable □ Not applicable
Means of acquisition and disposal of Effect on overall business operation and
Company name
subsidiary during the Reporting Period results
This enterprise has no actual business
Xin Feng Enterprise Co. Ltd. Liquidation and cancellation and has no impact on the operation and
performance of the Company.Information about major majority- and minority-owned subsidiaries:
22ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
1. In May 2021 the Company acquired 51% equity interest in Guangdong Jianbang Group (Huiyang) Industrial Co. Ltd. through the
payment of consideration of RMB450 million. This project company will develop the Lin Xinyuan project with a total 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 is completed the development of Phases III and IV
are to be initiated and construction permit has not been granted for the school. There were no sales in 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 November
2024 the Company completed the acceptance of the construction project with a cumulative sales rate of 99% for residential
buildings. The carryover revenue reached RMB97.88 million accounting for 60.22% revenue from the Group's real estate sector and
24.05% of the Group's operating income.
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. and Shantou Huafeng Real Estate Development Co. Ltd. The
Cuilinyuan project developed by Shenzhen SPG Longgang Development Co. Ltd. recorded a RMB21.66 million in 2024. Jinyedao
and YuejingDongfang developed by Shantou SEZ Wellam FTY Building Development Co. Ltd. left a few amount ofremaining
buildings for sale. And Shantou Huafeng Company was responsible for the development of the Tianyuewan project (divided into
Phases 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. As of 31 December 2024 the accumulated sales
rate for Tianyuewan Phase I was 74.96% and for Phase II it was 29.84%.
4. Shenzhen Zhentong Engineering Co. Ltd. was engaged in the business of building installation and maintenance with operating
revenues of RMB200.72 million in 2024 accounting for 49.31% of the Group's total operating revenue.The net profit of Xin Feng Enterprise Co. Ltd. was of RMB-2222500 in 2024 which mainly due to the depreciation and
amortization of investment property.X Structured bodies controlled by the Company
□ Applicable □Not applicable
XI Prospects
(I) Industry pattern and trends
Currently with the continuous release of policy effectiveness and the market self-recovery the real estate market
is showing a trend of differentiation where the core cities and economically developed regions are expected to
lead the recovery momentum. As the market resources are continuously gathering towards advantageous
enterprises and the integration of the industry chain is accelerating the real estate industry is presented with new
opportunities and challenges.(II) Possible risks and countermeasures
1. Macroeconomic risks and countermeasures
Currently the adverse effects of changes in the external environment are deepening posing many difficulties and
challenges to China's economic operation. However the fundamentals of China's economy remain stable with
many advantages strong resilience and significant potential and the long-term supportive conditions and basic
trends for improvement have not 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.
23ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
2. Industry development risks and countermeasures
At present as existing policies continue to take effect incremental policies are effectively implemented and
policy combination effects are continuously released the real estate market is expected to stop declining and
stabilize. But in the near future the real estate industry still faces multiple risks and potential hazards and the
market competition landscape is also presenting a new scenario. The Company will closely monitor industry
policies align with national strategic directions continuously optimize business development paths and actively
explore new operating models to better adapt to changes in the external environment.
3. Business operating risks and countermeasures
In the context of increasingly fierce competition in the real estate market the Company currently lacks sufficient
reserve of development land resources and new business expansions have not yet achieved substantive results all
of which put pressure on business development. The Company will closely monitor market dynamics and industry
policy trends and strive to promote project construction and real estate sales. It will formulate the land expansion
plans in a targeted manner and strive to improve the quality and efficiency of existing assets. When solidifying the
foundations of its main business the Company also actively seeks innovative models and paths that align with its
own development reality in order to flexibly respond to market challenges and explore broader development
space.(III) Development strategy and operating plan
In 2025 the guiding ideology for SPG is: Guided by Xi Jinping Thought on Socialism with Chinese
Characteristics for a New Era we will thoroughly implement the guidelines of 20th National Congress of the
Communist Party of China the Second and Third Plenary Sessions of the 20th CPC Central Committee the
Central Economic Work Conference and the important speeches of General Secretary Xi Jinping's important
speeches. In accordance with the decisions and deployments of the Municipal Party Committee and Municipal
Government the State-owned Assets Supervision and Administration Commission and SIHC's decision-making
plans we will adhere to the principles of seeking progress while maintaining stability and sustainable
development. With Party building as the lead we will adopt a holistic approach deepen implementation
continuously improve the quality and investment value of listed companies and strive to achieve better results in
corporate stability and reform and development work.
1. Make every effort to promote operations. First the Company will deepen its main business operations
focusing on the reduction of existing inventory to solidify the foundation for stable development; second it will
prioritize project construction to create high-quality projects that provide strong support for enterprise
development; third the focus will be on asset management to comprehensively improve service quality and
efficiency creating more value growth points; fourth it will strengthen the operation of affiliated enterprises
stimulate their inherent potential and market competitiveness thereby gathering a powerful synergy for enterprise
development.
2. Persevere in seeking development. First the Company will strengthen strategic guidance by maintaining close
communication with the controlling shareholder and timely initiating the preparation of the "15th Five-Year Plan"
strategy. This will help identify the core battlefield for future development and guide the in-depth progress of
corporate reforms. Second it will explore new paths for future development. That means the Company will seize
high-quality investment opportunities and expand a new frontier for enterprise development with a focus on the
major topics outlined by the State-owned Assets Supervision and Administration Commission for the "15th
Five-Year" period and the strategic direction of SIHC.
3. Activate the internal vitality. First the Company will solidify the management foundation and focus on
making the Company's operation more standardized. It will continuously improve the internal control system
strengthen the precision and efficiency of fund management accelerate the construction process of the Group's
information systems so as to lay a solid foundation for the stable development of the Company. Second the
Company will improve management efficiency optimize the assessment and incentive system build a lean and
efficient team promote the Group's move towards refined management operations and inject strong driving force
into the Group's development.
4. Persist in safeguarding safety over time. First the Company will focus on mitigating project risks
continuously promote the execution of judgments in the series of lawsuits related to Linxinyuan project closely
monitor policy trends and promptly take measures to revitalize assets; second it will focus on preventing safety
24ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
risks comprehensively improve the quality of safety management improve the safety management system strive
to achieve zero record of safety production responsibility accidents throughout the year; third it will focus on
controlling operational risks prudently advance the reduction of existing real estate inventory and accelerate the
clearance of zombie enterprises.
5. Strengthen the party building unshakably. First the Company will strengthen the education and
management of teams of CPC members and implement strict requirements; second it will promote in-depth
integration of party building and business and enhance the brand effect of "one enterprise one product" in party
building; third it will maintain a high-pressure stance on discipline and integrity striving to create a clean and
positive working atmosphere.XII Communications with the Investment Community such as Researches Inquiries and
Interviews during the Reporting Period
□Applicable □ Not applicable
Index to
Place Way of Type of
Date of visit Visitor Contents and materials provided main inquiry
of visit visit visitor
information
The
By Individu Individual Inquire about the Company's operation
09 January 2024 Comp N/A
telephone al investor status and strategic planning
any
The
Written Individu Individual Inquire about the number of
11 January 2024 Comp N/A
inquiry al investor shareholders
any
The
By Individu Individual Inquire about the Company's operation
15 January 2024 Comp N/A
telephone al investor status
any
The
By Individu Individual Inquire about the Company's future
19 January 2024 Comp N/A
telephone al investor development planning
any
The
Written Individu Individual Inquire about the number of
22 January 2024 Comp N/A
inquiry al investor shareholders
any
The
By Individu Individual Inquire about the number of
25 January 2024 Comp N/A
telephone al investor shareholders
any
The
By Individu Individual Inquire about the criteria for abnormal
26 January 2024 Comp N/A
telephone al investor stock movements
any
The
By Individu Individual Inquire about the Company's operation
29 January 2024 Comp N/A
telephone al investor status
any
The
Written Individu Individual Inquire about the number of
01 February 2024 Comp N/A
inquiry al investor shareholders
any
The
By Individu Individual Inquire about the number of
20 February 2024 Comp N/A
telephone al investor shareholders
any
The
Written Individu Individual Inquire about the number of
21 February 2024 Comp N/A
inquiry al investor shareholders
any
The
By Individu Individual Inquire about the Company's operation
22 February 2024 Comp N/A
telephone al investor status and strategic planning
any
The Written Individu Individual Inquire about the number of
01 March 2024 N/A
Comp inquiry al investor shareholders
25ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
any
The
Written Individu Individual Inquire about the number of
05 March 2024 Comp N/A
inquiry al investor shareholders
any
The
Written Individu Individual Inquire about the number of
07 March 2024 Comp N/A
inquiry al investor shareholders
any
The
Written Individu Individual Inquire about the number of
11 March 2024 Comp N/A
inquiry al investor shareholders
any
The
Written Individu Individual Inquire about the number of
18 March 2024 Comp N/A
inquiry al investor shareholders
any
The
Written Individu Individual Inquire about the number of
21 March 2024 Comp N/A
inquiry al investor shareholders
any
The
By Individu Individual Inquire about the progress of
22 March 2024 Comp N/A
telephone al investor non-compete commitment
any
The
By Individu Individual Inquire about the progress of
25 March 2024 Comp N/A
telephone al investor non-compete commitment
any
The
By Individu Individual Inquire about the progress of
29 March 2024 Comp N/A
telephone al investor non-compete commitment
any
The
By Individu Individual Inquire about the Company's operation
26 March 2024 Comp N/A
telephone al investor status
any
The
Written Individu Individual Inquire about the number of
03 April 2024 Comp N/A
inquiry al investor shareholders
any
The
By Individu Individual Inquire about the progress of
07 April 2024 Comp N/A
telephone al investor non-compete commitment
any
The
By Individu Individual Inquire about the progress of
08 April 2024 Comp N/A
telephone al investor non-compete commitment
any
The
By Individu Individual Inquire about the Company's operation
08 April 2024 Comp N/A
telephone al investor status and strategic planning
any
The
By Individu Individual Inquire about the Company's project
10 April 2024 Comp N/A
telephone al investor sales
any
The
Written Individu Individual Inquire about the number of
12 April 2024 Comp N/A
inquiry al investor shareholders
any
The
By Individu Individual Inquire about the progress of
15 April 2024 Comp N/A
telephone al investor non-compete commitment
any
The
By Individu Individual Inquire about the number of
17 April 2024 Comp N/A
telephone al investor shareholders
any
The
By Individu Individual Inquire about the regulations of the
17 April 2024 Comp N/A
telephone al investor National Nine Positive Stimuli
any
The By Individu Individual Inquire about the Company's land
18 April 2024 N/A
Comp telephone al investor reserve and project situation
26ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
any
The
By Individu Individual Inquire about the number of
23 April 2024 Comp N/A
telephone al investor shareholders
any
The
Written Individu Individual Inquire about the number of
23 April 2024 Comp N/A
inquiry al investor shareholders
any
The
Written Individu Individual Inquire about the number of
08 May 2024 Comp N/A
inquiry al investor shareholders
any
The
By Individu Individual Inquire about the progress of
10 May 2024 Comp N/A
telephone al investor non-compete commitment
any
The
Written Individu Individual Inquire about the number of
13 May 2024 Comp N/A
inquiry al investor A-shareholders
any
The Inquire about the Company's purchase
By Individu Individual
16 May 2024 Comp of income-generating financial N/A
telephone al investor
any products
The
Written Individu Individual Inquire about the number of
22 May 2024 Comp N/A
inquiry al investor shareholders
any
The
By Individu Individual
24 May 2024 Comp Consult delisting regulations N/A
telephone al investor
any
The
By Individu Individual Inquire about the progress of
28 May 2024 Comp N/A
telephone al investor non-compete commitment
any
The
Written Individu Individual Inquire about the number of
04 June 2024 Comp N/A
inquiry al investor shareholders
any
Inquire about the recent status of
The
By Individu Individual State-owned Assets Supervision and
11 June 2024 Comp N/A
telephone al investor Administration Commission of
any
Shenzhen Municipality
The
Written Individu Individual Inquire about the number of
12 June 2024 Comp N/A
inquiry al investor shareholders
any
The
Written Individu Individual Inquire about the number of
17 June 2024 Comp N/A
inquiry al investor shareholders
any
The
Written Individu Individual Inquire about the number of
21 June 2024 Comp N/A
inquiry al investor shareholders
any
The
Written Individu Individual Inquire about the number of
28 June 2024 Comp N/A
inquiry al investor shareholders
any
The
By Individu Individual Inquire about the number of A-share
02 July 2024 Comp N/A
telephone al investor shareholders
any
Inquire about the progress of
The
By Individu Individual non-compete commitment and matters
05 July 2024 Comp N/A
telephone al investor related to transfer agreements with
any
controlling shareholders
The
Written Individu Individual Inquire about the number of
08 July 2024 Comp N/A
inquiry al investor shareholders
any
27ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
The
By Individu Individual Inquire about the matter of
12 July 2024 Comp N/A
telephone al investor non-compete commitment
any
The
By Individu Individual Inquire about the number of
12 July 2024 Comp N/A
telephone al investor shareholders
any
The
By Individu Individual Inquire about the number of A-share
22 July 2024 Comp N/A
telephone al investor shareholders
any
The
By Individu Individual Inquire about the number of
1 August 2024 Comp N/A
telephone al investor shareholders
any
The
By Individu Individual Inquire about the overall selection of
5 August 2024 Comp N/A
telephone al investor the Company's management team
any
The
By Individu Individual Inquiry about the amendment of
5 August 2024 Comp N/A
telephone al investor regulations
any
The
Written Individu Individual Inquire about the number of
August 13 2024 Comp N/A
inquiry al investor shareholders
any
The
Written Individu Individual Inquire about the number of
16 August 2024 Comp N/A
inquiry al investor shareholders
any
The
Written Individu Individual Inquire about the number of
21 August 2024 Comp N/A
inquiry al investor shareholders
any
The
By Individu Individual Inquire about the progress of
26 August 2024 Comp N/A
telephone al investor Company lawsuits
any
The Inquire about the matters related to
By Individu Individual
26 August 2024 Comp transfer agreements with controlling N/A
telephone al investor
any shareholders
The
By Individu Individual Inquire about the number of
September 02 2024 Comp N/A
telephone al investor shareholders
any
The
Written Individu Individual Inquire about the number of
September 03 2024 Comp N/A
inquiry al investor shareholders
any
The Inquire about the matters related to
By Individu Individual
09 June 2024 Comp transfer agreements with controlling N/A
telephone al investor
any shareholders
The
Written Individu Individual Inquire about the number of
September 09 2024 Comp N/A
inquiry al investor shareholders
any
The
By Individu Individual Inquire about the progress of
September 10 2024 Comp N/A
telephone al investor non-compete commitment
any
The Inquire about the matters related to
By Individu Individual
September 11 2024 Comp transfer agreements with controlling N/A
telephone al investor
any shareholders
The
Written Individu Individual Inquire about the number of
September 14 2024 Comp N/A
inquiry al investor shareholders
any
The Inquire about the matters related to
By Individu Individual
September 18 2024 Comp transfer agreements with controlling N/A
telephone al investor
any shareholders
28ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
The
Written Individu Individual Inquire about the number of
September 23 2024 Comp N/A
inquiry al investor shareholders
any
The
By Individu Individual Inquire about the number of
8 October 2024 Comp N/A
telephone al investor shareholders
any
The
Written Individu Individual Inquire about the number of
October 10 2024 Comp N/A
inquiry al investor shareholders
any
The
Written Individu Individual Inquire about the number of
11 October 2024 Comp N/A
inquiry al investor shareholders
any
The
By Individu Individual Inquire about the number of
October 14 2024 Comp N/A
telephone al investor shareholders
any
The
Written Individu Individual Inquire about the number of
October 15 2024 Comp N/A
inquiry al investor shareholders
any
The
Written Individu Individual Inquire about the number of
21 October 2024 Comp N/A
inquiry al investor shareholders
any
The
Written Individu Individual Inquire about the number of
October 22 2024 Comp N/A
inquiry al investor shareholders
any
The
Written Individu Individual Inquire about the number of
October 28 2024 Comp N/A
inquiry al investor shareholders
any
The Inquire about the Company's
By Individu Individual
October 30 2024 Comp employees cash flow and future N/A
telephone al investor
any development
The Consult how to attend the on-site
By Individu Individual
October 30 2024 Comp meeting of Shareholders’ General N/A
telephone al investor
any Meeting
The
Written Individu Individual Inquire about the number of
01 November 2024 Comp N/A
inquiry al investor shareholders
any
The
Written Individu Individual Inquire about the number of
04 November 2024 Comp N/A
inquiry al investor shareholders
any
The
Written Individu Individual Inquire about the number of
05 November 2024 Comp N/A
inquiry al investor shareholders
any
The
Written Individu Individual Inquire about the number of
01 November 2024 Comp N/A
inquiry al investor shareholders
any
The
Written Individu Individual Inquire about the number of
07 November 2024 Comp N/A
inquiry al investor shareholders
any
The
By Individu Individual Consult online voting matters for
08 November 2024 Comp N/A
telephone al investor Shareholders’ General Meeting
any
The
Written Individu Individual Inquire about the number of
November 11 2024 Comp N/A
inquiry al investor shareholders
any
The
By Individu Individual Inquire about the number of
November 14 2024 Comp N/A
telephone al investor shareholders
any
29ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
The
By Individu Individual
November 15 2024 Comp Consult employee changes N/A
telephone al investor
any
The
By Individu Individual
November 21 2024 Comp Consult litigation matters N/A
telephone al investor
any
The
By Individu Individual
November 29 2024 Comp Consult future development direction N/A
telephone al investor
any
The
By Individu Individual Inquire about the number of
December 02 2024 Comp N/A
telephone al investor shareholders
any
The
By Individu Individual
December 04 2024 Comp Consult future development direction N/A
telephone al investor
any
The
By Individu Individual Consult matters of investor reception
December 05 2024 Comp N/A
telephone al investor day
any
The
By Individu Individual Consult personal stock ownership
December 09 2024 Comp N/A
telephone al investor record matters
any
The
Written Individu Individual Inquire about the number of
December 10 2024 Comp N/A
inquiry al investor shareholders
any
The
By Individu Individual Inquire about the number of
December 11 2024 Comp N/A
telephone al investor shareholders
any
The
By Individu Individual Inquire about the number of
December 11 2024 Comp N/A
telephone al investor shareholders
any
The
Written Individu Individual Inquire about the number of
December 13 2024 Comp N/A
inquiry al investor shareholders
any
The
By Individu Individual Inquire about the number of
December 23 2024 Comp N/A
telephone al investor shareholders
any
The
By Individu Individual
December 25 2024 Comp Consult litigation matters N/A
telephone al investor
any
The
By Individu Individual
December 26 2024 Comp Consult future development direction N/A
telephone al investor
any
XIII The Formulation and Implementation of the Market Value Management System and
Valuation Improvement Plan
Has the Company established a market value management system
□ Yes □No
Has the Company disclosed a valuation improvement plan
□ Yes □No
XIV 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"
30ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
□ Yes □No
31ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Part IV Corporate Governance
I Basic Situation of Corporate Governance
In accordance with the requirements of the Company Law the Securities Law the Code on the Governance of
Listed Companies and other laws and regulations the Company has been improving its governance structure
continuously adhering to standardized operation and an operational mechanism featuring decision-making by the
board of directors execution by the management team and supervision by the board of supervisors has been
formed.During the reporting period the Company's governance institutions at all levels have carried out their
responsibilities and authorities clearly and definitely and have performed their own functions. At the same time
they have checked and balanced each other in decision-making implementation and supervision effectively and
have operated in a coordinated manner.(I) Operation of the general meeting of shareholders
The preparation holding of the annual and extraordinary general meetings of shareholders of the Company as
well as disclosure of the resolutions made at the meetings have been carried out in strict accordance with the
Company Law the Rules of the General Meeting of Shareholders of Listed Companies of China Securities
Regulatory Commission (CSRC) the Articles of Association and the Rules of Procedure of the General Meeting of
Shareholders of the Company. The notification time of the meeting the procedure of authorization the procedure
of convening the convener the qualification of the personnel attending the meeting and the voting procedure of
the meeting have all been in line with relevant provisions. An on-site interaction for shareholders has been set at
the shareholders' meeting to ensure that the shareholders especially the small and medium-sized shareholders can
exercise their legitimate rights.(II) Operation of the board of directors
The preparation and holding of the board meeting of the Company and the disclosure of the resolution made at the
meeting have been carried out in strict accordance with the Company Law the Self-regulation Guidelines for
Listed Companies of Shenzhen Stock Exchange No. 1-Standardized Operation of Listed Companies on the Main
Board the Articles of Association and the Rules of Procedure of the Board Meeting of the Company. The number
and manning of the board of directors have met the requirements of laws and regulations. The directors have
worked diligently and responsibly and the board of directors has worked hard in making decisions and setting the
direction for the Company and has exercised its power in accordance with the requirements for corporate
governance.(III) Operation of the supervisory committee
The number and manning of the board of supervisors have met the requirements of laws and regulations. All
members of the board of supervisors of the Company have performed their duties diligently and conscientiously.They have supervised and inspected the important matters of the Company in strict accordance with the Company
Law the Self-regulation Guidelines for Listed Companies of Shenzhen Stock Exchange No. 1-Standardized
Operation of Listed Companies on the Main Board the Articles of Association and the Rules of Procedure of the
Board of Supervisors of the Company exercised the power of supervision effectively gave a full play to the
32ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
supervisory function have played a substantial role in the operation and management of the Company and have
protected the legitimate rights and interests of the Company and the shareholders.(IV) Operation at manager level
The manager level of the Company has performed its duties in strict accordance with the Company Law the
Self-regulation Guidelines for Listed Companies of Shenzhen Stock Exchange No. 1-Standardized Operation of
Listed Companies on the Main Board the Articles of Association and the Detailed Working Rules for the General
Manager of the Company. The manager level is responsible for the production operation and management of the
Company all-roundly. They have performed their duties diligently and conscientiously and have carried out the
decisions of the board of directors effectively. The members at the manager level have had a clear division of
labour among them they have worked diligently and conscientiously and there has not existed any situation of
"control under insiders ".Indicate by tick market whether there is any material incompliance with laws administrative regulations and regulations governing
the governance of listed companies issued by the CSRC.□ Yes □No
No such cases in the Reporting Period.II The Company’s Independence from Its Controlling Shareholder and Actual Controller in
Business Personnel Asset Organization and Financial Affairs
(I) In respect of assets the Company possessed independent and integrated assets and the property of the
Company is transparent.(II) In respect of personnel the Company was absolutely independent in management of labour personnel and
salaries from the controlling shareholders. All the senior executives of the Company took no office title
concurrently and drew no remunerations from the Shareholder Company.(III) In respect of finance the Company has independent financial department independently accounted and paid
taxes according to the law. The Company established a complete accounting system financial accounting system
and financial administrative systems. The Company opened independent bank accounts.(IV) In respect of organization the Board of Directors and the Supervisory Board operated independently. There
existed no superior-inferior relationship between the controlling shareholder and its function department and the
Company.(V) In respect of business the Company possessed independent production supply and sales system.III Horizontal Competition
□Applicable □ Not applicable
Relationshi Compa
Company Progress and
Type p with the ny Course Countermeasures
name follow-up plan
Company nature
Both the 1. Solution for industry competition For details
Shenzhen
Controlling Company and between Shenzhen Property please refer to
Horizontal Investmen
shareholde Other Shenzhen Management and SPG. For the the
competition t Holdings
r Properties & existing businesses of Shenzhen Announcement
Co. Ltd
Resources Property Management that are in on the
33ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Development competition with SPG SIHC will Commitment to
(Group) Ltd. initiate one or more practically Avoid
(referred to as operable solutions within the scope Horizontal
Shenzhen allowed by laws and regulations Competition
Property and complete the implementation from the Change
Management) of related solutions by 9 November of Controlling
are subsidiaries 2026 to resolve the existing Shareholder
controlled by horizontal competition issue: disclosed by the
Shenzhen (1) Solve the horizontal Company on 30
Investment competition through asset sales or September 2024
Holdings Co. asset swaps; (2) Solve the (Announcement
Ltd. Both the horizontal competition through No.: 2024-035)
Company and equity transfers (3) Other measures and the
Shenzhen that can effectively address the Announcement
Property horizontal competition. on Resolutions
Management 2. Other commitments to avoid of the Third
are engaged in horizontal competition. As the Extraordinary
real estate controlling shareholder of the listed General Meeting
development company and during the period of Shareholders
and commercial when the listed company is listed in 2024
housing sales on the Shenzhen Stock Exchange disclosed on 9
which belong to companies enterprises and November 2024
the same economic organizations controlled (Announcement
industry and or actually controlled by SIHC No.: 2024-041).thus have a (excluding enterprises controlled
situation of by the listed company collectively
horizontal referred to as "subsidiaries") will
competition. not engage in business directly
competitive with the listed
company in new business fields
other than those where there is
existing horizontal competition.SIHC commits not to seek unfair
benefits through its status as the
controlling shareholder of the listed
company thereby harming the
rights and interests of the listed
company and its shareholders. In
case of violation of the above
commitments SIHC will bear the
corresponding legal
responsibilities including but not
limited to compensation for all
losses caused to the listed
company.IV Annual and Extraordinary General Meeting Convened during the Reporting Period
1. General Meetings Convened during the Reporting Period
Investor
Index to disclosed
Meeting Type participati Convened date Disclosure date
information
on ratio
For details please refer
The 1st
Extraordinary to the Announcement
Extraordinary
General 62.46% 22 February 2024 23 February 2024 on Resolutions of the
General Meeting
Meeting First Extraordinary
of 2024
General Meeting of
34ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Shareholders in 2024
(Announcement No.:
2024-005).
For details please refer
to the Announcement
on Resolutions at 2023
The 2023 Annual Annual General
62.48% 17 May 2024 18 May 2024 Annual General
General Meeting Meeting
Meeting
(Announcement No.:
2024-020).
For details please refer
to the Announcement
The 2nd on Resolutions of the
Extraordinary
Extraordinary Second Extraordinary
General 62.55% 23 August 2024 24 August 2024
General Meeting General Meeting of
Meeting
of 2024 Shareholders in 2024
(Announcement No.:
2024-027).
For details please refer
to the Announcement
The 3rd on Resolutions of the
Extraordinary
Extraordinary Third Extraordinary
General 6.30% 08 November 2024 09 November 2024
General Meeting General Meeting of
Meeting
of 2024 Shareholders in
2024(Announcement
No.: 2024-041).
2. Extraordinary General Meeting Convened at Request of Preference Shareholders with Resumed Voting
Rights
□ Applicable □Not applicable
V Directors Supervisors and Senior Management
1. Basic Information
Incre Decre
ase ase in Other Endi
Begin in the the increa ng
Incu Reas
Ge ning Repo Repor se/de share
Ag mbe Start of End on for
Name nd Office title shareh rting ting creas holdi
e nt/Fo tenure of tenure chang
er olding Perio Perio e ng
rmer e
(share) d d (share (shar
(shar (share ) e)
e) )
Incu
Chairman of 30 March
mbe 0 0 0 0 0
the Board 2023
nt
Tang Incu 31
Ma
Xiaopin 54 Director mbe December 0 0 0 0 0
le
g nt 2020
Incu 14
GM mbe December 0 0 0 0 0
nt 2020
Incu 12
Qian Ma
51 Director mbe September 0 0 0 0 0
Zhong le
nt 2023
35ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Incu
11 October
Director mbe 0 0 0 0 0
2021
Wang Ma nt
52
Jianfei le Incu 22
CFO mbe September 0 0 0 0 0
nt 2021
Incu
Zhang Ma 30 March
50 Director mbe 0 0 0 0 0
Manhua le 2023
nt
Incu 30
Li Ma
51 Director mbe November 0 0 0 0 0
Wenkun le
nt 2023
Incu
Meng Ma 23 August
49 Director mbe 0 0 0 0 0
Fei le 2024
nt
Incu
He Ma Independent 30 June
62 mbe 0 0 0 0 0
Zuowen le director 2020
nt
Incu
Mi Ma Independent 30 June
49 mbe 0 0 0 0 0
Xuming le director 2020
nt
Incu
Liu Ma Independent 17 May
53 mbe 0 0 0 0 0
Haifeng le director 2024
nt
Chairman of
Incu
Wang Ma the 17 May
58 mbe 0 0 0 0 0
Jiangtao le Supervisory 2022
nt
Committee
Fe Incu
17 April
Li Yufei ma 46 Supervisor mbe 0 0 0 0 0
2012
le nt
Incu 30
Wei Ma
45 Supervisor mbe November 0 0 0 0 0
Junfeng le
nt 2023
Fe Incu
Lu 28 March
ma 48 Supervisor mbe 200 0 0 0 200
Haiyan 2023
le nt
Xu Fe Incu
15 May
Fangmin ma 48 Supervisor mbe 0 0 0 0 0
2024
g le nt
Zhang Incu
Ma 15 July
Hongwe 58 Vice GM mbe 0 0 0 0 0
le 2020
i nt
Incu
Huang Ma 29 July
52 Vice GM mbe 0 0 0 0 0
Weijun le 2022
nt
Incu
Wu Ma 29 July
53 Vice GM mbe 0 0 0 0 0
Zhiyong le 2022
nt
Incu 31
Ma Board
Luo Yi 51 mbe December 0 0 0 0 0
le Secretary
nt 2020
31
Sun Ma For 23 August
43 Director December 0 0 0 0 0
Minghui le mer 2024
2020
Kang Ma Independent For 15 May 17 May
6000000
Xiaoyue le director mer 2018 2024
36ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Fe
For 27 April 15 May
Lin Jun ma 55 Supervisor 0 0 0 0 0
mer 2016 2024
le
Total -- -- -- -- -- -- 200 0 0 0 200 --
Indicate by tick mark whether any directors or supervisors left or any senior management were disengaged during the Reporting
Period
□Yes □ No
1. Mr. Sun Minghui will no longer serve as a director of the Company due to changes in work nor will he hold
any other positions in the Company. For specific details please refer to the Announcement on Resolutions of the
Second Extraordinary General Meeting of Shareholders in 2024 disclosed by the Company on 24 August 2024
(Announcement No.: 2024-027).
2. Mr. Kang Xiaoyue will no longer serve as Independent Director of the Company upon completing six
consecutive years of service nor will he hold any other positions in the Company. For specific details please refer
to the Announcement on Resolutions at 2023 Annual General Meeting disclosed by the Company on 18 May 2024
(Announcement No.: 2024-020).
3. Ms. Lin Jun will no longer serve as Employee Supervisor of the Company due to retirement nor will she hold
any other positions in the Company. For specific details please refer to the Announcement on the Change of
Employee Supervisor of the Eighth Board of Supervisors disclosed by the Company on 18 May 2024
(Announcement No.: 2024-019).
Change of Directors Supervisors and Senior Management
□Applicable □ Not applicable
Name Office title Type of change Date of change Reason
Sun Minghui Director Former 23 August 2024 Job transfer
Meng Fei Director Elected 23 August 2024
Served as an independent director of
Kang Independent
Former 17 May 2024 the Company for six consecutive
Xiaoyue director
years
Independent
Liu Haifeng Elected 17 May 2024
director
Employee
Lin Jun Former 15 May 2024 Retirement
supervisor
Employee
Xu Fangming Elected 15 May 2024
supervisor
2. Biographical Information
Professional backgrounds major work experience and current duties in the Company of the incumbent directors supervisors and
senior management:
Tang Xiaoping: He once acted as Chief Financial Officer and head of the Financial Department of Shenzhen
Great Wall Runda Asset Management Co. Ltd. head of Financial Operation Management Department of
Shenzhen External Service Group Co. Ltd. and Executive Director of Shenzhen Foreign Affairs Service Center
Manager Deputy General Manager Board Secretary and Deputy Secretary of the Party Committee of the
Company's Budget and Finance Department; currently serves as the Company's Secretary of the CPC Committee
Chairman and General Manager.Qian Zhong: He once acted as the Director of the Board of Directors Office (Strategy Research Office) Member
of the Discipline Inspection Committee and the Head of the Operation Management Department of Shenzhen
Properties & Resources Development (Group) Ltd.; currently serving as the Deputy Secretary of the CPC
Director and Chairman of the Trade Union Confederation of the Company.Wang Jianfei: He once acted as the Head of the Financial Management Department of Shenzhen Construction
Development (Group) Company Deputy General Manager of Hubei Shentou Control Investment Development
Co. Ltd.; currently serving as Director Chief Financial Officer and Member of the Party Committee of the
37ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Company and Director and Chief Financial Officer of Shenzhen General Institute of Architectural Design and
Research Co. Ltd.Zhang Manhua: He once acted the Head of the Investment Department of Century Science & Technology
Investment Corporation Deputy Head of the Strategy Development Department and Deputy Head of the Capital
Operation Department of Shenzhen Investment Holdings Co. Ltd.; currently serving as Head of the Legal and
Risk Management Department of Shenzhen Investment Holdings Co. Ltd. Deputy Secretary of the Party
Committee Director and General Manager of Shenzhen Bay Technology Development Co. Ltd. and Director of
the Company.Li Wenkun: Previously a Deputy General Manager of Shenzhen Toukong Property Management Co. Ltd. a
Director a Deputy Secretary of the Party Committee and the Secretary of the Discipline Inspection Commission
of Shenzhen Shentou Environmental Protection Technology Co. Ltd. and a Director and a Deputy Secretary of
the Party Committee of Shenzhen Environmental Protection Technology Group Co. Ltd. (original name was
Shenzhen Shentou Environmental Protection Technology Co. Ltd.); currently a Director of Shenzhen Water
Planning and Design Institute Co. Ltd. and a Director of the Company.Meng Fei: He previously worked at Shenzhen Tianhong Shopping Mall Co. Ltd. and Shenzhen Press Group and
served as a Senior Manager in the Financial Department of Shenzhen Investment Holdings Co. Ltd.; currently
serving as Deputy Head of the Financial Department (Settlement Center) of Shenzhen Investment Holdings Co.Ltd. and Director of the Company.He Zuowen: he once worked as Associate Professor of Accounting at Changsha University of Science &
Technology (formerly Changsha Electric Power Institute) Partner at Shenzhen Huapeng Accounting Firm Head
of the Shenzhen branch of Beijing Zhongtian Huazheng Certified Public Accountants (now Da Hua Certified
Public Accountants LLP) Partner at Lixin Accounting Firm; currently serving as Partner Member of the Partner
Management Committee and Secretary of the Party Branch of Zhengdan Zhiyuan (Shenzhen) Certified Public
Accountants (Special General Partnership) Chairman of Shenzhen Tianye Taxation Firm Co. Ltd. and
Independent Director of Shenzhen Ruijie Technology Co. Ltd. and the Company. Major social positions include:
Off-campus Master's Tutor at Shenzhen University Member of the Shenzhen Institute of Certified Public
Accountants Industry Committee of the Communist Party of China Expert in Expert Database of Shenzhen
State-owned Assets Supervision and Administration Commission Shenzhen Development and Reform
Commission Shenzhen Science and Technology Innovation Commission Shenzhen Radio and Television Culture
Tourism and Sports Bureau and Shenzhen United Property And Share Rights Exchanged.Xuemin Mi: he once worked as a lecturer and associate professor at Shenzhen University holds a PhD in
Management from Xiamen University a postdoctoral fellowship in Applied Economics from Xiamen University
and was a visiting scholar at the University of Exeter's Department of Accounting in the UK. He is currently a
professor and doctoral supervisor at Shenzhen University as well as the Deputy Director of the Risk Research
Center of Shenzhen University. He also serves as an independent director at Shenzhen Farben Information
Technology Co. Ltd. OFILM Group Co. Ltd. and the Company.Haifeng Liu: he once served as a partner at Guangdong Xintong Law Firm; currently a primary partner at
Guangdong Hancheng Law Firm and an independent director at Shenzhen CEREALS HOLDINGS Co. Ltd. CR
Trust and the Company.Jiangtao Wang: he once worked as the Executive Deputy General Manager and Party Branch Secretary of
Shenzhen Foreign Economic and Trade Investment Company Director Secretary of the Discipline Inspection
Commission and Party Commission and Chairman of the Supervisory Board of Shenzhen General Institute of
Architectural Design and Research Co. Ltd.; currently serves as the Secretary of the Discipline Inspection
Commission Chairman of the Supervisory Board and a member of the Party Committee of the Company.Li Yufei: she ever worked as the Assistant to the Manager of the Investment Department and Assistant to the
Manager & Vice Manager of Assets Management Centre as well as the Senior Management Staff of Enterprise
Department I and Enterprise Department II (Journal Center) in Shenzhen Investment Holdings Co. Ltd. Now she
serves as the deputy director of Discipline Inspection Office in Shenzhen Investment Holdings Co. Ltd. and the
supervisor of the Company.
38ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Junfeng Wei: he once worked as the Deputy Head of the Strategy Research Department (Board of Directors
Office) at Shenzhen Investment Holdings Co. Ltd.; currently serves as the Deputy Party Secretary and Director of
Shenzhen Textile (Holdings) Co. Ltd. and is a supervisor at the Company.Haiyan Lu: he once worked as the Deputy Head of the Finance Department and the Strategy Development
Department (Board of Directors Office) of Shenzhen Foreign Service Group Co. Ltd.; currently a supervisor and
the Deputy Head of the Audit Department (in charge) of the Company.Fangming Xu: he once worked as the Contract Manager of the Cost Control Department of the Company;
currently a supervisor and the Deputy Head of Disciplinary Inspection & Supervision Office (Board of
Supervisors Office) (in charge of comprehensive work) of the Company.Hongwei Zhang: he once worked as the General Manager of Shenzhen Urban Construction Investment
Development Co. Ltd. and Hefei Ruifa Urban Construction Investment and Development Co. Ltd. and Manager
of the Development Department Sales Department Project Department II and Engineering Management
Department of this Company; currently the Deputy General Manager and a member of the Party Committee of
this Company Chairman of Jianbang Company and General Manager of Longgang Development Company.Huang Weijun: Once served as a member of the Party Committee Secretary of the Committee for Discipline
Inspection and Deputy GM of Shenzhen Guangming Group Co. Ltd. a member of the Party Committee
Secretary of the Committee for Discipline Inspection and Deputy GM of Shenzhen OCT Vision Inc. (concurrently
as an executive director of Shenzhen OCT International Media Performing Co. Ltd.) and now serving as the
Deputy GM member of the CPC of the Company.Wu Zhiyong: Once served as the Chairman and GM of Shenzhen Petrel Hotel Co. Ltd. and Deputy Manager of
Property Management Department and Asset Operation Center of the Company and now serving as the Deputy
GM member of the CPC of the Company of the Company.Luo Yi: He was once the Vice GM Deputy Director of Board Secretariat and Securities Representative in the
Shantou branch of the Company. And he now serves as the Board Secretary and Director of the Board Secretariat
in the Company.Offices held concurrently in shareholding entities:
□Applicable □ Not applicable
Remuneration or
Office held in the End of
Name Shareholding entity Start of tenure allowance from the
shareholding entity tenure
shareholding entity
Zhang Shenzhen Investment Head of Legal and Risk
19 October 2018 Yes
Manhua Holdings Co. Ltd Management
Deputy Head of the
Shenzhen Investment
Meng Fei Finance Department September 15 2017 Yes
Holdings Co. Ltd
(Settlement Center)
Deputy Director of
Shenzhen Investment
Li Yufei Discipline Inspection 9 July 2015 Yes
Holdings Co. Ltd
Office
Offices held concurrently in other entities:
□Applicable □ Not applicable
Remuneration or
End of
Name Other entity Office held in the entity Start of tenure allowance from the
tenure
entity
Shenzhen Architecture
Wang
Design General Research Director and CFO 21 December 2023 No
Jianfei
Institute
Shenzhen Properties &
Zhang
Resources Development Supervisor 31 July 2014 No
Manhua
(Group) Ltd.Zhang Shenzhen Architecture Director 11 July 2017 No
39ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Manhua Design General Research
Institute
Zhang Shenzhen Asset
Director 23 April 2020 No
Manhua Management Co. Ltd.Shenzhen Bay Area Urban
Zhang
Construction and Director 16 August 2021 No
Manhua
Development Co. Ltd.Shenzhen High-Tech Zone
Zhang
Investment Development Director 25 November 2022 No
Manhua
Group Co. Ltd.Zhang Shenzhen Corporate
Vice-president 9 January 2023 No
Manhua Compliance Association
Zhang Guotai Junan Securities
Director 18 January 2024 No
Manhua Co.Ltd.Deputy secretary of the
Zhang Shenzhen Bay Technology Party Committee
December 19 2024 No
Manhua Development Co. Ltd. Director and general
manager
Zhang Shenzhen Chuangke Park Chairman of the Board
December 19 2024 No
Manhua Investment Co. Ltd. GM
Shenzhen Water Planning
Li
and Design Institute Co. Director 4 September 2023 No
Wenkun
Ltd.Shenzhen Hi-tech Zone
Meng Fei Investment Development Supervisor 25 November 2022 No
Group Co. Ltd.Shenzhen TopoScend
Meng Fei Supervisor 17 October 2017 No
Capital Co. Ltd.Shenzhen Investment
Control Hong Kong
Meng Fei Director 18 July 2024 No
Investment Holdings Co.Ltd.Shenzhen Textile
Meng Fei Director 23 July 2024 No
(Holdings) Co. Ltd.Shenzhen Dapengwan
Li Yufei Director 19 November 2015 No
Huaqiao Tomb
Shenzhen Shentou Cultural
Li Yufei Director 2 September 2022 No
Investment Co. Ltd.Shenzhen Environmental
Wei
Protection Technology Supervisor 17 October 2017 No
Junfeng
Group Co. Ltd.Shenzhen Highway
Wei
Passenger Transportation Director 24 August 2023 No
Junfeng
Service Centre Co. Ltd.Wei Shenzhen Textile Deputy Party Committee
18 February 2025 Yes
Junfeng (Holdings) Co. Ltd. Secretary and Director
Punishments imposed in the recent three years by the securities regulator on the incumbent directors supervisors and senior
management as well as those who left in the Reporting Period:
□ Applicable □Not applicable
3. Remuneration of Directors Supervisors and Senior Management
Decision-making procedure determination basis and actual payments of remuneration for directors supervisors and senior
management:
40ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
The remuneration of the Company's directors supervisors and senior managers shall be determined and
implemented in accordance with the regulations of the Company's remuneration management system.After the review and approval at the 2022 Annual General Meeting of Shareholders held on 28 April 2023 the
allowance for independent directors has been adjusted to RMB10000 (pre-tax) per person per month from
RMB7000 (pre-tax) per person per month since May 2023 and independent directors will not receive any
remuneration other than it from the Company.Remuneration of directors supervisors and senior management for the Reporting Period
Unit: RMB’0000
Total before-tax
Gende Incumbent/For remuneration Any remuneration
Name Age Office title
r mer from the from related party
Company
Chairman of the Board
Tang Xiaoping Male 54 Incumbent 105.85 No
GM
Qian Zhong Male 51 Director Incumbent 70.01 No
Wang Jianfei Male 52 Director and CFO Incumbent 104.4 No
Zhang Manhua Male 50 Director Incumbent 0 Yes
Li Wenkun Male 51 Director Incumbent 0 Yes
Meng Fei Male 49 Director Incumbent 0 Yes
He Zuowen Male 62 Independent director Incumbent 12 No
Mi Xuming Male 49 Independent director Incumbent 12 No
Liu Haifeng Male 53 Independent director Incumbent 7 No
Chairman of the
Wang Jiangtao Male 58 Incumbent 103.2 No
Supervisory Committee
Femal
Li Yufei 46 Supervisor Incumbent 0 Yes
e
Wei Junfeng Male 45 Supervisor Incumbent 0 Yes
Femal
Lu Haiyan 48 Supervisor Incumbent 46.44 No
e
Femal
Xu Fangming 48 Supervisor Incumbent 29.41 No
e
Zhang
Male 58 Vice GM Incumbent 90 No
Hongwei
Huang Weijun Male 52 Vice GM Incumbent 90 No
Wu Zhiyong Male 53 Vice GM Incumbent 90 No
Luo Yi Male 51 Board Secretary Incumbent 61.44 No
Sun Minghui Male 43 Director Former 0 Yes
Kang Xiaoyue Male 60 Independent director Former 5 No
Femal
Lin Jun 55 Supervisor Former 30.51 No
e
Total -- -- -- -- 857.26 --
Other notes
? Applicable □Not applicable
1. The remuneration data of directors supervisors and senior management disclosed by the Company is the monthly salaries of the
current year + the performance bonus for the previous year paid in the current year.
2. Qian Zhong Deputy Secretary of the Party Committee and Director took office in July 2023 and was transferred from an external
unit. In 2023 only monthly salaries were paid by the Company. In 2024 in addition to monthly salaries the performance bonus for
41ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
2023 was also paid.
VI Performance of Duty by Directors in the Reporting Period
1. Board Meeting Convened during the Reporting Period
Meeting Convened date Disclosure date Index to disclosed information
Details are shown in Announcement of
The 8th Meeting of the 8th Resolutions of the Eighth Meeting of the Eighth
29 March 2024 30 March 2024
Board of Directors Board of Directors (Announcement No.
2024-006)
Details are shown in Announcement of
The 9th Meeting of the 8th Resolutions of the Ninth Meeting of the Eighth
26 April 2024 27 April 2024
Board of Directors Board of Directors (Announcement No.
2024-013)
Details are shown in Announcement of
The 10th meeting of the Resolutions of the Tenth Meeting of the Eighth
2 August 2024 3 August 2024
eighth session of the Board Board of Directors (Announcement No.
2024-023)
Details are shown in Announcement of
The 11th Meeting of the Resolutions of the Eleventh Meeting of the
23 August 2024 24 August 2024
eighth session of the Board Eighth Board of Directors (Announcement No.
2024-028)
Details are shown in Announcement of
The 12th Meeting of the Resolutions of the Twelfth Meeting of the
18 September 2024 19 September 2024
eighth session of the Board Eighth Board of Directors (Announcement No.
2024-032)
Details are shown in Announcement of
The 13th Meeting of the Resolutions of the Thirteenth Meeting of the
30 September 2024 30 September 2024
eighth session of the Board Eighth Board of Directors (Announcement No.
2024-033)
See Resolution Announcement of the
The 14th Meeting of the
30 October 2024 31 October 2024 Fourteenth Board Meeting (Announcement No.
eighth session of the Board
2024-038)
Details are shown in Announcement of
The 15th Meeting of the Resolutions of the Fifteenth Meeting of the
22 November 2024 23 November 2024
eighth session of the Board Eighth Board of Directors (Announcement No.
2024-042)
2. Attendance of Directors at Board Meetings and General Meetings
Attendance of directors at board meetings and general meetings
Total number Board The director
Board Board
of board Board meetings failed to attend
meetings meetings the General
meetings the meetings attended by two
Director attended director meetings
director was attended on way of consecutive
through a failed to attended
eligible to site telecommuni board meetings
proxy attend
attend cation (yes/no)
Tang
8 2 6 0 0 No 4
Xiaoping
Qian Zhong 8 2 6 0 0 No 4
Wang
8 2 6 0 0 No 4
Jianfei
Zhang
8 0 8 0 0 No 0
Manhua
Li Wenkun 8 1 7 0 0 No 2
Meng Fei 5 0 5 0 0 No 0
He Zuowen 8 2 6 0 0 No 4
42ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Mi Xuming 8 1 7 0 0 No 3
Liu Haifeng 6 1 5 0 0 No 2
Sun
3 1 2 0 0 No 0
Minghui
Kang
2 1 1 0 0 No 1
Xiaoyue
Why any independent director failed to attend two consecutive board meetings:
Not applicable
3. Objections Raised by Directors on Matters of the Company
Indicate by tick mark whether any directors raised any objections on any matter of the Company.□ Yes □No
No such cases in the Reporting Period.
4. Other Information about the Performance of Duty by Directors
Indicate by tick mark whether any suggestions from directors were adopted by the Company.□Yes □ No
Suggestions from directors adopted or not adopted by the Company:
During the Reporting Period all directors of the Company performed their duties diligently and conscientiously.They thoroughly mastered the Company’s production and operation internal control and standardized operation
and put forward relevant opinions on the Company’s major governance and operation decisions based on their
professional advantages. These opinions were fully communicated and discussed among the directors before
forming consensus which effectively promoted scientific and objective decision-making by the Board of
Directors and helpfully safeguarded the legitimate rights and interests of the Company and all shareholders.VII Performance of Duty by Specialized Committees under the Board in the Reporting Period
Othe
Deta
r
ils
infor
abou
Numbe mati
t
r of on
issue
Commi meeting Convened abou
Members Content Important opinions and suggestions raised s
ttee s date t the
with
conven perf
obje
ed orma
ction
nce
s (if
of
any)
duty
The schedule for
Audit
the 2023 annual
Commi He The schedule important audit matters
financial
ttee of Zuowen key areas of focus and proposed audit
statements and
the Sun 9 January procedures for the 2023 financial
5 internal control
Board Minghui 2024 statements and internal control audit
audit important
of Mi conducted by Pan-China Certified Public
audit matters key
Directo Xuming Accountant (LLP) were agreed upon.areas of focus and
rs
proposed audit
43ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
procedures was
reviewed.The draft audit report prepared by
Pan-China Certified Public Accountant
He (LLP) complies with the various
Zuowen Deliberation on provisions of enterprise accounting
Sun 18 March the audit of the standards and truly and completely
5
Minghui 2024 2023 annual reflects the company's financial status as
Mi financial report of 31 December 2023 as well as the
Xuming operating results and cash flows for the
year 2023. The audit work for the 2023
financial report was completed well.
1. The Company's financial statements are
prepared in accordance with the
provisions of enterprise accounting
standards in all material respects and are
true reliable and complete. The 2023
audit report prepared by Pan-China
Certified Public Accountant (LLP) fairly
reflects the Company's financial status
operating results and cash flows for 2023
in all material respects.
2. The Company's 2023 Internal Control
Self-assessment Report comprehensively
objectively and truly reflects the actual
The 2023 annual
situation of internal control in 2023. In
financial report
accordance with the requirements of the
statement and
standard system for enterprise internal
financial
control and relevant regulations the
information in the
Company has maintained effective
2023 annual
He internal control over financial reporting in
report the 2023
Zuowen all material respects. During the reporting
internal control
Sun 22 March period no significant deficiencies or
5 self-assessment
Minghui 2024 material weaknesses in internal controls
report
Mi over financial reporting were identified
proposal on the
Xuming within the company and no significant
provisions for
deficiencies or material weaknesses in
credit impairment
internal controls outside of financial
and asset
reporting were found.impairment for the
3. The provisions for credit impairment
year 2023 were
and asset impairment for the year 2023 by
reviewed
the company are conducted in accordance
with and comply with the provisions of
the Accounting Standards for Business
Enterprises and the relevant company
policies. The basis for these provisions is
sufficient and aligns with the Company's
operational status. This provision for
credit and asset impairment is based on
the principle of prudence helping to more
fairly reflect the Company's financial
status and operating results as of 31
December 2023 making the Company's
accounting information more reasonable.He The First Quarter 2024 Report truly
Deliberation on
Zuowen 19 April accurately and completely reflects the
5 First Quarter 2024
Sun 2024 Company's financial status operating
Report
Minghui results and cash flow for the first quarter
44ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Mi of 2024 and approval is given to submit
Xuming the relevant proposals to the Company's
Board of Directors for review.It was agreed to appoint Pan-China
Certified Public Accountant (LLP) as the
He
auditing firm for the Company's financial
Zuowen Deliberation on
report and internal control audit for the
Sun 26 July the proposed
5 year 2024. The audit fees are set at
Minghui 2024 renewal of the
RMB720000 of which the fee for the
Mi audit firm
financial report audit is RMB510000 and
Xuming
the fee for the internal control audit is
RMB210000.
1. The Semi-annual Report for 2024 was
considered to truly accurately and
completely reflect the Company's
Deliberation on financial status operating results and
the Semi-annual cash flow for the first half of 2024. It was
He
Report for 2024 agreed to submit the relevant proposals to
Zuowen
23 August the Report on the Company's Board of Directors for
Mi 2
2024 Internal Audit for review.
Xuming
the first half of 2. Recognition was given to the internal
Meng Fei
2024 and other audit work carried out in the first half of
matters. 2024 and it was required to carry out
audit work in accordance with the work
plan requirements in the second half of
the year.
1. The Third Quarter 2024 Report was
considered to truly accurately and
Deliberation on completely reflect the Company's
Third Quarter financial status operating results and
He
2024 Report the cash flow. It was agreed to submit the
Zuowen
October Report on Internal relevant proposals to the Company's
Mi 2
30 2024 Audit Work for Board of Directors for review.
Xuming
the third quarter of 2. Recognition was given to the internal
Meng Fei
2024 and other audit work carried out in the third quarter
items. of 2024 and it was required to continue
carrying out audit work in accordance
with the work plan.Remun
eration The compensation decision-making
and The annual process for the Company's directors
Apprai Mi compensation of supervisors and senior management
sal Xuming directors and members complies with regulations. The
Commi Wang 29 March senior compensation standards for directors
3
ttee of Jianfei 2024 management supervisors and senior management
the He disclosed in the members align with the established
Board Zuowen 2023 annual report compensation system. The compensation
of was reviewed information disclosed in the 2023 annual
Directo report is true and accurate.rs
Remun This decision-making process for the
eration Mi Tenure assessment tenure assessment of senior management
and Xuming results for senior for the 2021-2023 term complies with the
Apprai Wang 19 April management Implementation Plan for Senior
3
sal Jianfei 2024 members for the Management's 2021-2023 Tenure
Commi He 2021-2023 term Assessment. There is no situation that
ttee of Zuowen were reviewed. damages the interests of the Company and
the shareholders.
45ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Board
of
Directo
rs
The letter of responsibility for annual
Remun
business performance about senior
eration
management members in 2024 meets the
and The letter of
requirements of the performance
Apprai Mi responsibility for
assessment indicators for 2024. It is
sal Xuming annual business
aligned with the key work points for the
Commi Wang September performance about
3 year and the division of responsibilities
ttee of Jianfei 18 2024 senior
among the leadership team members. The
the He management
agreement demonstrates good scientific
Board Zuowen members in 2024
and rational principles and does not harm
of was reviewed
the interests of the company and its
Directo
shareholders particularly the interests of
rs
minority shareholders.Kang
The proposed
Xiaoyue
change of It was agreed to nominate Mr. Liu
Qian 19 April
1 independent Haifeng as a candidate for the Company's
Zhong 2024
director matter independent director.He
was reviewed.Zuowen
1. It is believed that the Overall Selection
and Appointment Work Plan for the
Nomin
Management Team of ShenZhen Special
ation
Economic Zone Real Estate & Properties
Commi
(Group) Co. Ltd. is formulated in
ttee of The overall
accordance with the laws administrative
the selection and
Liu regulations departmental rules normative
Board appointment work
Haifeng documents and the Articles of
of plan for the
Qian 26 July Association. It meets the policy and work
Directo 1 management team
Zhong 2024 requirements set by higher authorities
rs and propose to
He regarding the overall selection of
change directors
Zuowen corporate management teams and aligns
and other matters
well with the actual situation of the
were reviewed
company demonstrating good scientific
and rational principles.
2. It is agreed to nominate Mr. Meng Fei
as a candidate for the Company's Board of
Directors.VIII Performance of Duty by the Supervisory Committee
Indicate by tick mark whether the Supervisory Committee found any risk to the Company during its supervision in the Reporting
Period.□ Yes □No
The Supervisory Committee raised no objections in the Reporting Period.IX Employees
1. Number Functions and Educational Backgrounds of Employees
Number of in-service employees of the Company as the parent
98
at the period-end
46ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Number of in-service employees of major subsidiaries at the
135
period-end
Total number of in-service employees at the period-end 233
Total number of paid employees in the Reporting Period 233
Number of retirees to whom the Company as the parent or its
0
major subsidiaries need to pay retirement pensions
Functions
Function Employees
Production 93
Sales 26
Technical 14
Financial 25
Administrative 75
Total 233
Educational backgrounds
Category Number
Doctors 3
Masters 20
Bachelors 107
College graduates 51
Technical secondary school graduates 5
High school graduates and below 47
Total 233
2. Employee Remuneration Policy
The management personnel above vice general manager (including vice GM) of the Company conducted annual
salary system other employees conducted contacting the performance with the benefit salary system.
3. Employee Training Plans
The Company formulates an annual training plan based on the Employee Training Management Measures. The
Company implements training for current employees through methods such as internal training inviting experts
for on-site lectures or participating in specialized external training programs. This training covers aspects such as
job knowledge professional skills regulations and business processes. The goal is to enrich and update
employees' professional knowledge enhance their overall quality and improve their business skills.
4. Labor Outsourcing
□ Applicable □Not applicable
X Profit Distributions (in the Form of Cash and/or Stock)
How the profit distribution policy especially the cash dividend policy was formulated executed or revised in the Reporting Period:
□ Applicable □Not applicable
Indicate by tick mark whether the Company fails to put forward a cash dividend proposal for shareholders despite the facts that the
Company has made profits in the Reporting Period and the profits of the Company as the parent distributable to shareholders are
positive.
47ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
□ Applicable □Not applicable
Final Dividend Plan for the Reporting Period
□ Applicable □Not applicable
No such cases in the Reporting Period.XI Equity Incentive Plans Employee Stock Ownership Plans or Other Incentive Measures for
Employees
□ Applicable □Not applicable
No such cases in the Reporting Period.XII Establishment and Execution of the Internal Control System for the Reporting Period
1. Establishment and Execution of the Internal Control System
The Company has established a relatively complete and continuously effective internal control system and has
carried out internal control evaluation in accordance with the internal control matrix and documents. The
Company has maintained effective internal controls over financial reporting in all significant aspects according to
the requirements of the corporate internal control standards and relevant regulations. No significant deficiencies in
non-financial reporting internal controls have been identified and no factors have occurred that would impact the
conclusions regarding the effectiveness of internal controls. At the same time the Company attaches great
importance to the regulation and steering role of the big supervision system. By holding joint supervision
meetings and carrying out key supervision and inspection the Company has promoted the standardization level
improvement of relevant management work. No major violations of regulations and disciplines have been found.In the future the Company will continue to develop internal control in a standardized manner and strengthen the
supervision and inspection of internal control in order to promote the healthy and sustainable development of the
Company.
2. Material Internal Control Weaknesses Identified for the Reporting Period
□ Yes □No
XIII Management and Control over Subsidiaries by the Company for the Reporting Period
Integration Countermeasur Settlement Follow-up
Company name Integration plan Problem
progress es taken progress settlement plan
N/A N/A N/A N/A N/A N/A N/A
XIV Internal Control Evaluation Report or Independent Auditor’s Report on Internal
Control
1. Internal Control Evaluation Report
Disclosure date of the internal control
22 March 2025
self-evaluation report
Index to the disclosed internal control
2024 Internal Control Self-Evaluation Report on www.cninfo.com.cn
self-evaluation report
Evaluated entities’ combined assets as %
84.49%
of consolidated total assets
48ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Evaluated entities’ combined operating
revenue as % of consolidated operating 99.74%
revenue
Identification standards for internal control weaknesses
Weaknesses in internal control over financial
Type Weaknesses in internal control not related to financial reporting
reporting
The criterion of quality of the recognition of defects of internal
control in the non-financial statements mainly were order of
severity of defect involving business nature the direct or
The Company based on the actual situation
potential negative influence nature and the influence scope and
identifies the following events or signs that may
other factors. Generally the presence of the following signs
indicate the presence of significant or material
indicates that there may be major or significant deficiencies in
deficiencies in financial reporting: (1) The
the non-financial report internal control: (1) lack of democratic
directors supervisors and senior management are
decision-making procedures such as lack of decision-making
found to have fraudulent behavior. (2) Certified
on major issues important appointments or dismissals
Public Accountant find that there is a significant
Nature significant project investment decisions use of large funds
error in the financial report however the internal
standard (Three Major and One Big) decision-making procedures; (2)
control did not discover it when conducting
unscientific decision-making procedures such as major
internal control; (3) The Audit Committee under
decision-making errors resulting in significant property losses
the Board and Internal Audit Service's
for the Company; (3) serious violations of national laws and
supervision to the internal control is invalid. (4)
regulations; (4) key management personnel or important talents
The accounting personnel were without necessary
leaving in large numbers; (5) frequent negative media reports
qualities to complete the preparation of financial
with a broad impact; (6) failure to rectify the results of internal
statements.control evaluation especially major or significant deficiencies;
(7) lack of systematic control over important businesses or
systemic failure of systems.Serious defects: the defects or defect group may
lead to the financial results misstatement or
potential losses >3% of net assets; Important
The criterion of quantity of the recognition of defects of
defects: 1% of net assets
Quantitati internal control in the non-financial statements mainly were
group may lead to the financial results
ve amount of direct economy losses in line with the criterion of
misstatement or potential losses ≤ 3% of net
standard quantity of the recognition of defects of internal control in
assets; General defects: the defects or defect
financial report of the Company.group may lead to the financial results
misstatement or potential losses ≤ 1% of net
assets.Number of material weaknesses in
0
internal control over financial reporting
Number of material weaknesses in
internal control not related to financial 0
reporting
Number of serious weaknesses in
0
internal control over financial reporting
Number of serious weaknesses in
internal control not related to financial 0
reporting
2. Independent Auditor’s Report on Internal Control
□Applicable □ Not applicable
Opinion paragraph in the independent auditor’s report on internal control
We believe that Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. maintained effective internal
control of financial statements in all significant aspects on 31 December 2023 in accordance with Basic Standards for Internal
Control and relevant regulations.
49ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Independent auditor’s report on internal control disclosed or
Disclosed
not
Disclosure date 22 March 2025
Index to such report disclosed Report on Internal Control disclosed on www.cninfo.com.cn.Type of the auditor’s opinion Unmodified unqualified opinion
Material weaknesses in internal control not related to financial
No
reporting
Indicate by tick mark whether any modified opinion is expressed in the independent auditor’s report on the Company’s internal
control.□ Yes □No
Indicate by tick mark whether the independent auditor’s report on the Company’s internal control is consistent with the internal
control self-evaluation report issued by the Company’s Board.□Yes □ No
XV Rectifications of Problems Identified by Self-inspection in the Special Action for Listed
Company Governance
During the reporting period the Company did not have any issues that needed rectification after self-examination.
50ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual 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
For details please refer to the 2024 Environmental Social and Corporate Governance (ESG) Report disclosed on Cninfo
(www.cninfo.com.cn).Measures taken to decrease carbon emission in the Reporting Period and corresponding effects
□ Applicable □Not applicable
Reason for failure of disclosing other environmental information
Not applicable
II Social Responsibility
Adhering to the philosophy of "thinking of the source when drinking water" while pursuing economic benefits
the Company proactively practiced its role as a state-owned enterprise fulfilled its social responsibility and gave
back to the society with practical action. For details please refer to the 2024 Environmental Social and Corporate
Governance (ESG) Report disclosed on Cninfo (www.cninfo.com.cn).III Consolidation and Expansion of Poverty Alleviation Outcomes and Rural Revitalization
Paying close attention to rural development the Company proactively implemented the national targeted poverty
alleviation action and continuously carried out consumer assistance and rural revitalisation tasks. For details
please refer to the 2024 Environmental Social and Corporate Governance (ESG) Report disclosed on Cninfo
(www.cninfo.com.cn).
51ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Part VI Significant Events
I Fulfillment of Commitments
1. 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
Type
Date of
Pro of Term of
Comm commit
mis com Details of commitment commit Fulfillment
itment ment
or mitm ment
making
ent
Commitment has been
To avoid horizontal competition Shenzhen
changed. For details
Investment Holdings Co. Ltd. made such a
please refer to the
commitment: For the Company’s existing business
Announcement on the
that has horizontal competition with ShenZhen
Commitment to Avoid
Properties & Resources Development (Group) Ltd.Horizontal
Shenzhen Investment Holdings Co. Ltd. will within
Competition from the
Other the scope permitted by laws and regulations timely
Change of Controlling
commi launch one or several of the following solutions that
Shareholder disclosed
tments is practically feasible and complete the
Before by the Company on 30
made implementation of the relevant solution(s) before 9 10
9 September 2024
to November 2024 to solve the existing horizontal Septemb
Novemb (Announcement No.:
minorit competition problem: (1) Solve the horizontal er 2021
er 2024 2024-035) and the
y competition between the two through asset sales or
Sh Announcement on
interest asset replacement; (2) Solve the horizontal
enz Resolutions of the
s competition between the two through equity transfer;
hen Third Extraordinary
(3) Take other measures that can effectively solve the
Inv Avoi General Meeting of
problem of horizontal competition. Above
est ding Shareholders in 2024
commitment came into force upon the review and
me horiz disclosed on 9
approval on the shareholders’ meeting of ShenZhen
nt ontal November 2024
Properties & Resources Development (Group) Ltd.Ho comp (Announcement No.:
(dated 27 September 2021).ldi etitio 2024-041).ngs n 1. Solution for industry competition between
Co. Shenzhen Property Management and SPG. For the
existing businesses of Shenzhen Property
Other
Ltd Management that are in competition with SPG SIHC
commi
will initiate one or more practically operable
tments
solutions within the scope allowed by laws and Before
made 26
regulations and complete the implementation of 9
to Septemb In performance
related solutions by 9 November 2026 to resolve the Novemb
minorit er 2024
existing horizontal competition issue: er 2026
y
(1) Solve the horizontal competition through asset
interest
sales or asset swaps; (2) Solve the horizontal
s
competition through equity transfers (3) Other
measures that can effectively address the horizontal
competition.Other 2. Other commitments to avoid horizontal 26 As a
commi competition. As the controlling shareholder of the Septemb controlli In performance
tments listed company and during the period when the listed er 2024 ng
52ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
made company is listed on the Shenzhen Stock Exchange sharehol
to companies enterprises and economic organizations der of a
minorit controlled or actually controlled by SIHC (excluding publicly
y enterprises controlled by the listed company listed
interest collectively referred to as "subsidiaries") will not compan
s engage in business directly competitive with the y during
listed company in new business fields other than its
those where there is existing horizontal competition. listing
SIHC commits not to seek unfair benefits through its period
status as the controlling shareholder of the listed on the
company thereby harming the rights and interests of Shenzhe
the listed company and its shareholders. In case of n Stock
violation of the above commitments SIHC will bear Exchan
the corresponding legal responsibilities including but ge
not limited to compensation for all losses caused to
the listed company.Fulfilled on time Yes
Specific reasons for failing to fulfil commitments on time and plans for next step (if any) N/A
2. Where there had been an earnings forecast for an asset or project and the Reporting Period was still
within the forecast period explain why the forecast has been reached for the Reporting Period.□ Applicable □Not applicable
II Occupation of the Company’s Capital by the Controlling Shareholder or Its Related Parties
for Non-Operating Purposes
□ Applicable □Not applicable
No such cases in the Reporting Period.III Irregularities in the Provision of Guarantees
□ Applicable □Not applicable
No such cases in the Reporting Period.IV Explanations Given by the Board of Directors Regarding the Latest “Modified Opinion”
on the Financial Statements
□ Applicable □Not applicable
V Explanations Given by the Board of Directors the Supervisory Board and the Independent
Directors (if any) Regarding the Independent Auditor's “Modified Opinion” on the Financial
Statements of the Reporting Period
□ Applicable □Not applicable
VI YoY Changes to Accounting Policies Estimates or Correction of Material Accounting
Errors
□Applicable □ Not applicable
For specific details please refer to "III. Important Accounting Policies and Accounting Estimates" of "Part X Financial Statements"
specifically in "(32) Changes in Important Accounting Policies".
53ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
VII YoY Changes to the Scope of the Consolidated Financial Statements
□Applicable □ Not applicable
Reduction in consolidation scope
Net profit from the
beginning of the
Company name Equity disposal method Equity disposal date Net assets on disposal date
period to
the disposal date
Xin Feng Enterprise Liquidation and
January 2024 RMB692200 0
Co. Ltd. cancellation
VIII Engagement and Disengagement of Independent Auditor
Current independent auditor
Name of the domestic independent auditor Pan-China Certified Public Accounts LLP
The Company’s payment to the domestic independent auditor
72
(RMB’0000)
How many consecutive years the domestic independent auditor
has provided audit service for the Company
Names of the certified public accountants from the domestic
Wang Huansen and Cai Xiaodong
independent auditor writing signatures on the auditor’s report
How many consecutive years the certified public accountants
from the domestic independent auditor have provided audit 2
service for the Company
Indicate by tick mark whether the independent auditor was changed for the Reporting Period.□ Yes □No
Independent auditor financial advisor or sponsor engaged for the audit of internal controls:
□Applicable □ Not applicable
During the Reporting Period the Company engaged Pan-China Certified Public Accountant (LLP) to provide internal control and
audit services for the Company at a service fee of RMB210000.IX Possibility of Delisting after Disclosure of this Report
□ Applicable □Not applicable
X Insolvency and Reorganization
□ Applicable □Not applicable
No such cases in the Reporting Period.XI Major Legal Matters
□Applicable □ Not applicable
General Involve Prov Progress Decisions and effects Execution of Disclosur Index to
54ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
informati d ision decisions e date disclosed
on amount information
(RMB’
0000)
In 2004 the
Shaanxi Higher
People's Court
legally auctioned
all assets of the
trading
(1) Xi’an Business Tourism
company with
Company Limited (hereinafter
Xi'an Xinfengreferred to as “BusinessProperty TradingCompany”) had to pay for the
Co. Ltd.compensation RMB36.62 million
receiving
and the relevant interest (from 14
RMB15201000
September 1998 to the payment The 2024
million.day) to Xi’an Fresh Peak Semi-Annual
Currently the
Company within one month after Report
trading company
Xi’an the judgment entering into force. 24 (Announcem
End this has no
Project 2154 No If the Business Company failed to August ent No.:
execution enforceable
Lawsuit pay in time it had to pay double 2024 2024-031)
assets left and
debt interests to Xi’an Fresh Peak disclosed on
the Xi'an
Company for the overdue period; cninfo.com.c
Municipal
(2) Xi’an Joint Commission on n
Bureau of
Commerce had jointly and
Commerce has
severally obligation of the
consistently
interests of the compensation; (3)
refused to
Business Company shall bear
comply with the
RMB227500 of the acceptance
judgment
fee and the security fee.making further
claims difficult
to pursue. This
case is at the end
of the execution
stage.Huizhou
As Jianbang Group is incapable of
Mingxiang
paying the commercial bills due in
Economic
January 2022 which total
Information
RMB177151400 Huizhou
Consulting Co.Mingxiang Economic Information The 2024
Ltd. Huizhou
Consulting Co. Ltd. Huizhou Semi-Annual
Huiyang Hongfa
Huiyang Hongfa Industry & Trade Report
Industry & Trade
Lawsuit Co. Ltd. and Huizhou 24 (Announcem
17715. In Co. Ltd. and
of bill No Jinlongsheng Industrial Co. Ltd. August ent No.:
14 execution Huizhou
dispute brought a lawsuit on the bill 2024 2024-031)
Jinlongsheng
dispute to the People’s Court of disclosed on
Industrial Co.Huiyang District. The Huiyang cninfo.com.c
Ltd. have
District Court ruled at first n
applied for
instance in March 2023 that
execution to the
Jianbang Group should pay the
Huizhou
acceptance bill amount and
Intermediate
interest.People's Court.Contractu In January 2024 the Company The Company 3 Announceme
39568. In
al No received a civil judgment of the has applied to February nt on the
85 execution
disputes first instance issued by the the court to 2024 Progress of
55ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
over Shenzhen Luohu District People's freeze the Litigation
loans Court. The Company won the case corresponding Matters (No.:
and has applied to the Luohu assets. 2024-003) on
District People's Court of www.cninfo.Shenzhen for compulsory com.cn
execution.On 8 January 2025 the Company
received the first-instance civil
Joint
judgment in this case. The
venture
judgment made by the Huizhou Announceme
and
Intermediate People's Court nt on
cooperati
In the supported some of the company's 8 Litigation
ve real 74357. In the second
No second litigation requests. On 22 January Decembe Matters (No.:
estate 5 instance.instance 2025 the Company appealed r 2023 2023-048) on
developm
against the claims not supported www.cninfo.ent
and the case entered the second com.cn
contract
instance stage. No second-instance
disputes
judgment has been made in this
case.The second-instance ruling for this
Announceme
case was received in October The Company
Contractu nt on
2024 and because the defendant has applied to
al 13 Litigation
41952. In did not pay the appeal fee it was the court to
disputes No January Matters (No.:
29 execution treated as a withdrawal of the freeze the
over 2024 2024-001) on
appeal. The Company won this corresponding
loans www.cninfo.case and has applied for assets.com.cn
compulsory execution.XII Punishments and Rectifications
□ Applicable □Not applicable
No such cases in the Reporting Period.XIII Credit Quality of the Company as well as Its Controlling Shareholder and Actual
Controller
□ Applicable □Not applicable
XIV Major Related-Party Transactions
1. Continuing Related-Party Transactions
□ Applicable □Not applicable
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.
56ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual 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.XV 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)
Disclosu Line of Actual Actual Type of Counter Term of Having Guarante
Collatera
Obligor re date guarante occurren guarante guarante guarante guarante expired e for a
l (if any)
of the e ce date e e e (if any) e or not related
57ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
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 l (if any)
e line e ce date e e (if any) e or not party or
amount
announc not
ement
From the
date of
The
signing
Compan
the
y
guarante
holds
Shenzhe e
100%
n contract
equity
SPG to the
interests
Chuanqi date
18 in
Real 17 June when all
March 50000 3343.8 Pledge Shenzhe No No
Estate 2022 guarante
2022 n
Develop ed debts
SPG
ment are
Chuanqi
Co. uncondit
Real
Ltd. ionally
Estate
and
Develop
irrevoca
ment
bly paid
Co. Ltd.off in
full.Total approved line Total actual amount
for such guarantees of such guarantees in
500003343.8
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 3343.8
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 l (if any)
e line e ce date e 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
500003343.8
Reporting Period the Reporting Period
(A1+B1+C1) (A2+B2+C2)
58ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Total actual
Total approved
guarantee balance at
guarantee line at the
50000 the end of the 3343.8
end of the Reporting
Reporting Period
Period (A3+B3+C3)
(A4+B4+C4)
Total actual guarantee amount (A4+B4+C4)
0.95%
as % of the Company’s net assets
Of which:
Compound guarantees
3. Cash Entrusted to Other Entities for Management
(1) Cash Entrusted for Wealth Management
□Applicable □ Not applicable
Overview of cash entrusted for wealth management in the Reporting Period
Unit: RMB’0000
Unrecovered
Unrecovered overdue amount
Type Funding source Amount Undue amount
overdue amount with provision for
impairment
Others Self-owned funds 98780.19 98780.19 0 0
Total 98780.19 98780.19 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
(2) Entrusted Loans
□ Applicable □Not applicable
No such cases in the Reporting Period.
4. Other Major Contracts
□ Applicable □Not applicable
No such cases in the Reporting Period.XVI Other Significant Events
□Applicable □ Not applicable
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.
59ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
XVII Significant Events of Subsidiaries
□ Applicable □Not applicable
60ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Part VII Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
Before Increase/decrease (+/-) After
Shares as
Shares as
dividend
dividend Percentag New converted Percentag
Shares converted Other Subtotal Shares
e (%) issues from e (%)
from
capital
profit
reserves
I
Restricted 0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00%
shares
1
Shares
0.000.00%0.000.000.000.000.000.000.00%
held by
the state
2
Shares
held by
0.000.00%0.000.000.000.000.000.000.00%
state-own
Legal-per
son
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
Shar
es held by
domestic 0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00%
natural
person
Oversea
0.000.00%0.000.000.000.000.000.000.00%
sharehold
ings
Amo
ng which: 0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00%
shares
61ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
held by
oversea
legal
person
Shar
es held by
oversea 0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00%
natural
person
II
10116601011660
Unrestrict 100.00% 0.00 0.00 0.00 0.00 0.00 100.00%
000.00000.00
ed shares
1 RMB
89166008916600
ordinary 88.14% 0.00 0.00 0.00 0.00 0.00 88.14%
00.0000.00
shares
2
Domestic
12000001200000
ally listed 11.86% 0.00 0.00 0.00 0.00 0.00 11.86%
00.0000.00
foreign
shares
3
Oversea
listed 0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00%
foreign
shares
4 Other 0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00%
III 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
Effects of share changes on the basic and diluted earnings per share equity per share attributable to the Company’s ordinary
shareholders and other financial indicators of the prior year and the prior accounting period respectively:
□ Applicable □Not applicable
Other information that the Company considers necessary or is required by the securities regulator to be disclosed:
□ Applicable □Not applicable
2. Changes in Restricted Shares
□ Applicable □Not applicable
62ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
II Issuance and Listing of Securities
1. Securities (Exclusive of Preferred Shares) Issued in the Reporting Period
□ Applicable □Not applicable
2. Changes to Total Shares Shareholder Structure and Asset and Liability Structures
□ Applicable □Not applicable
3. Existing Staff-Held Shares
□ Applicable □Not applicable
III Shareholders and Actual Controller
1. Shareholders and Their Shareholdings at the Period-End
Unit: share
Number of preferred
Number of ordinary
Number of Number of preferred shareholders with
shareholders at the
ordinary shareholders with resumed voting rights
40335 month-end prior to 39791 0 0
shareholders at resumed voting rights at at the month-end prior
the disclosure of
the period-end the period-end to the disclosure of this
this Report
Report
Shareholding of ordinary shareholders holding more than 5% shares or the top 10 of ordinary shareholders (exclusive of shares
lent in refinancing)
Increase Shares in pledge
Number of and marked or frozen
Sharehold Restrict
shareholding decrease Number of
Nature of ing ed
Name of shareholder at the end of of shares unrestricted
shareholder percentag shares
the Reporting during shares Sha
e held Status
Period Reportin res
g Period
Shenzhen
State-owned
Investment Holdings 55.78% 564353838 0 0 564353838 N/A 0
legal person
Co. Ltd
Shenzhen Domestic
State-owned Equity non-state-ow
6.35% 64288426 0 0 64288426 N/A 0
Management Co. ned legal
Ltd. person
Domestic
Yang Jianmin natural 1.33% 13498017 2361040 0 13498017 N/A 0
person
Domestic
Wang Yulan natural 0.62% 6228591 1801400 0 6228591 N/A 0
person
Domestic
Zhang Xiujuan natural 0.48% 4829700 69300 0 4829700 N/A 0
person
Hong Kong
Foreign legal
Securities Clearing 0.42% 4201303 54500 0 4201303 N/A 0
person
Company Ltd.Domestic
He Qiao natural 0.37% 3791900 -96986 0 3791900 N/A 0
person
63ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Domestic
Wang Zhengying natural 0.29% 2961900 43800 0 2961900 N/A 0
person
Domestic
Zhang Zi natural 0.26% 2671200 86500 0 2671200 N/A 0
person
Domestic
Zang Xiangfeng natural 0.24% 2457563 392400 0 2457563 N/A 0
person
Strategic investor or general legal person
becoming a top-10 ordinary shareholder due to N/A
rights issue
Among the top 10 shareholders of the Company Shenzhen State-owned
Equity Management Co. Ltd. is a wholly-owned subsidiary of Shenzhen
Related or acting-in-concert parties among the Investment Holdings Co. Ltd. The Company does not know whether there
shareholders above 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 entrusting/being entrusted with N/A
voting rights or waiving voting rights
Special account for share repurchases among the
N/A
top 10 shareholders
Shareholdings of Top Ten Unlimited Shareholders (Excluding Shares Lent trough Refinancing and Management Lock-up Shares)
Unrestricted shares held at the Shares by type
Name of shareholder
period-end Shares by type Shares
Shenzhen Investment Holdings Co. Ltd 564353838 RMB ordinary shares 564353838
Shenzhen State-owned Equity
64288426 RMB ordinary shares 64288426
Management Co. Ltd.Yang Jianmin 13498017 RMB ordinary shares 13498017
Wang Yulan 6228591 RMB ordinary shares 6228591
Zhang Xiujuan 4829700 RMB ordinary shares 4829700
Hong Kong Securities Clearing
4201303 RMB ordinary shares 4201303
Company Ltd.He Qiao 3791900 RMB ordinary shares 3629500
Domestically listed
He Qiao 3791900 162400
foreign shares
Wang Zhengying 2961900 RMB ordinary shares 2961900
Zhang Zi 2671200 RMB ordinary shares 2671200
Zang Xiangfeng 2457563 RMB ordinary shares 2457563
Related or acting-in-concert
Among the top 10 unrestricted public shareholders of the Company Shenzhen State-owned
parties among top 10
Equity Management Co. Ltd. is a wholly-owned subsidiary of Shenzhen Investment Holdings
unrestricted public shareholders
Co. Ltd. The Company does not know whether there exists associated relationship among the
as well as between top 10
other shareholders or whether they are persons acting in concert as prescribed in the
unrestricted public shareholders
Administrative Measures for the Acquisition of Listed Companies.and top 10 shareholders
Among the top 10 shareholders the shareholder ranked 3rd holds 9804200 shares in a credit
securities account the 5th ranked shareholder holds 4760400 shares in a credit securities
Top 10 ordinary shareholders
account the 7th ranked shareholder holds 3332000 shares in a credit securities account the
involved in securities margin
8th ranked shareholder holds 2961900 shares in a credit securities account the 9th ranked
trading
shareholder holds 2581600 shares in a credit securities account and the 10th ranked
shareholder holds 2065163 shares in a credit securities account.Participation of Shareholders with a Shareholding Bigger Than 5% the Top Ten Shareholders and the Top Ten Shareholders of
Non-restricted Tradable Shares in the Lending of Shares Through Refinancing
64ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
□ Applicable □Not applicable
Changes in the top ten shareholders and the top ten shareholders of non-restricted tradable shares from the previous reporting period
due to lending/return through refinancing
□ Applicable □Not applicable
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the
Company conducted any promissory repo during the Reporting Period.□ Yes □No
No such cases in the Reporting Period.
2. Controlling Shareholder
Nature of the controlling shareholder: Controlled by a local state-owned legal person
Type of the controlling shareholder: legal person
Legal
Name of controlling Unified social credit
representative/p Date of establishment Principal activity
shareholder code
erson in charge
Investment in equities
on behalf of the
government and
management of those
investments;
Shenzhen Investment development and
He Jianfeng 13 October 2004 914403007675664218
Holdings Co. Ltd operation of
government-allocated
land; and investment in
and provision of
services for strategic
emerging industries
303140000 shares in SZPRD A (000011) representing a stake of 50.86%;
234070000 shares in STHC (000045) representing a stake of 46.21%;
8210000 shares in Shenzhen Universe A (000023) representing a stake of 5.91%;
962720000 shares in Ping An (601318) representing a stake of 5.29%;
Guosen Securities (002736) holding 3223.12 million shares representing a stake of 33.53%；
609430000 of A shares and 103370000 of H shares in Guotai Junan (601211 representing a
stake of 8%;
195030000 shares in Telling Holding (000829) representing a stake of 19.03%;
1059082500 shares in Shenzhen International (00152) representing a stake of 43.95%;
Controlling shareholder’s 606.65 million shares in Lihexhichuang (002243) representing a stake of 50.11%;
holdings in other listed 315830000 shares in Infinova (002528) representing a stake of 26.35%;
companies at home or abroad 601673300 shares in EA (002183) representing a stake of 23.17%;
in the Reporting Period 64350000 shares in SWPD (301038) representing a stake of 37.50%;
6770000 shares in Shenzhen Energy (000027) representing a stake of 0.14%;
9520000 shares in BOCOM (601328) representing a stake of 0.01%;
113980000 shares in Techand Ecology (300197) representing a stake of 3.84%;
77270000 shares in Vanke (02202) representing a stake of 0.66%;
696160000 shares in SEG (000058) representing a stake of 56.54%;
325721500 shares in SDGI (000070) representing a stake of 36.18%;
205341600 shares in TELLUS A (000025) representing a stake of 31.79%;
80739800 shares in SDGS (300917) representing a stake of 47.78%;
72000000 shares in MICROGATE (300319) representing a stake of 8.28%;
65ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
456121900 shares in CHINA MERCHANT’S SHEKOU HOLDINGS (001979) representing a
stake of 5.03%.Change of the controlling shareholder in the Reporting Period:
□ Applicable □Not applicable
No such cases in the Reporting Period.
3. Actual Controller and Its Acting-in-Concert Parties
Nature of the actual controller: Local institution for state-owned assets management
Type of the actual controller: legal person
Name of actual Legal representative/person Unified social
Date of establishment Principal activity
controller in charge credit code
Perform the
The State-owned
responsibilities of
Assets Supervision and
investor on behalf of
Administration
Yang Jun 31 July 2004 K3172806-7 the state and supervise
Commission of the
and manage the
People’s Government
authorized state-owned
of Shenzhen Municipal
assets legally.Other listed companies
at home or abroad In addition to the Company controlling shareholder - Shenzhen Investment Holding Co. Ltd. Other
controlled by the actual domestic and overseas listed companies whose equity held by the actual controllers did not rank among
controller in the the top ten shareholders of the Company.Reporting Period
Change of the actual controller during the Reporting Period:
□ Applicable □Not applicable
No such cases in the Reporting Period.Ownership and control relations between the actual controller and the Company:
The State-owned Assets Supervision and Administration Commission of the People’s Government of Shenzhen Municipal
Shenzhen Investment Holdings Co. Ltd.Shenzhen State-owned Equity Management Co. Ltd.Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.Indicate by tick mark whether the actual controller controls the Company via trust or other ways of asset management.□ Applicable □Not applicable
4. Number of Accumulative Pledged Shares held by the Company’s Controlling Shareholder or the Largest
Shareholder as well as Its Acting-in-Concert Parties Accounts for 80% of all shares of the Company held
by Them
□ Applicable □Not applicable
5. Other 10% or Greater Corporate Shareholders
□ Applicable □Not applicable
66ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
6. Limitations on Shareholding Decrease by the Company’s Controlling Shareholder Actual Controller
Reorganizer and Other Commitment Makers
□ Applicable □Not applicable
IV Specific Implementation of Share Repurchase during the Reporting Period
Progress on any share repurchase:
□ Applicable □Not applicable
Progress on reducing the repurchased shares by means of centralized bidding:
□ Applicable □Not applicable
67ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Part VIII Preference Shares
□ Applicable □Not applicable
No preference shares in the Reporting Period.Part IX Bonds
□ Applicable □Not applicable
68ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Part X Financial Statements
I Auditor’s Report
Type of the audit opinion Unmodified unqualified opinion
Date of signing this report 21 March 2025
Name of the audit institution Pan-China Certified Public Accounts LLP
Number of the audit report PCCPAAR [2025] No. 7-47
Name of the certified public accountants Wang Huansen and Cai Xiaodong
Text of the Auditor’s Report
Auditor’s Report
To the Shareholders of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co.Ltd.:
I. Audit Opinion
We have audited the financial statements of Shenzhen Special Economic Zone Real Estate &
Properties (Group) Co. Ltd.(the “Company”) which comprise the consolidated and parent
company balance sheets as at December 31 2024 the consolidated and parent company income
statements consolidated and parent company cash flow statements and consolidated and parent
company statements of changes in equity for the year then ended as well as notes to financial
statements.In our opinion the accompanying financial statements present fairly in all material respects the
financial position of the Company as at December 31 2024 and its financial performance and its
cash flows for the year then ended in accordance with China Accounting Standards for Business
Enterprises.II. Basis for Audit Opinion
We conducted our audit in accordance with China Standards on Auditing. Our responsibilities under
those standards are further described in the Certified Public Accountant’s Responsibilities for the
Audit of the Financial Statementssection of our report. We are independent of the Company in
accordance with the China Code of Ethics for Certified Public Accountants and we have fulfilled
other ethical responsibilities. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
69ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
III. Key Audit Matters
Key audit matters are those matters that in our professional judgment were of most significance in
our audit of the financial statements of the current period. These matters were addressed in the
context of our audit of the financial statements as a whole and in forming our opinion thereon and
we do not express a separate opinion on these matters.(I) Revenue recognition
1. Key audit matters
Please refer to section III (XXV) and V (II) 1 of notes to the financial statements for details.The Company is mainly engaged in real estate sales engineering construction and property leasing
business. In 2024 the operating revenue amounted to 407022191.44 yuan of which
162523053.49 yuan was from the real estate salesaccounting for 39.93% and 160327744.72
yuan was from engineering construction accounting for 39.39%.As operating revenue is one of the key performance indicators of the Company there might be
inherent risks that the Company’s management (the “Management”) adopts inappropriate revenue
recognition to achieve specific goals or expectations and revenue recognition involves significant
judgment of the Management we have identified revenue recognition as a key audit matter.
2. Responsive audit procedures
Our main audit procedures for revenue recognition are as follows:
(1) We obtained understandings of key internal controls related to revenue recognition assessed the
design of these controls determined whether they had been executed and tested the effectiveness of
the operation;
(2) We checked main House sales contract and lease contracts and assessed whether the revenue
recognition method was appropriate;
(3) We performed analysis procedure on operating revenue and gross margin by month business
type etc. so as to identify whether there are significant or abnormal fluctuations and find out the
reason;
(4) We checked supporting documents related to selected items including House sales contract
housing delivery notices lease contracts sales invoices etc.
(5) We selected items to check the documents includingcost budget purchase contracts subcontract
agreements etc. which were taken as the basis for estimating total cost so as totestwhether the
performance progress and the revenue recognized based on performance progress were
70ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
accuratelymeasured by the Management and evaluated the reasonableness of the performance
progress determined by the Management in combination with documents including supervision
reports progress confirmation sheets customer statements as well as the on-site observation on
inventory counting;
(6) We performed confirmation procedures on sales amount of selected items in combination with
confirmation procedure of accounts receivable and contract assets;
(7) We performed cut-off tests to check whether the revenue was recognized in the appropriate
period; and
(8) We checked whether information related to operating revenue had been presented appropriately
in the financial statements.(II) Net realizable value of inventories
1. Key audit matters
Please refer to section III (XIII) and V (I) 7 of notes to the financial statements for details.As of December 31 2024 the book balance of inventories amounted to 4403473942.54 yuan
with provision for inventory write-down of 766633713.20 yuan and the carrying amount
amounted to 3636840229.34 yuan.Inventories are measured at the lower of cost and net realizable value. The net realizable value is
determined by the Management based on the amount of the estimated selling price less the cost to
be incurred upon completion estimated selling expenses and relevant taxes and surcharges.As the
amount of inventories is significant and determination of net realizable value involves significant
judgment of the Management we have identified net realizable value of inventories as a key audit
matter.
71ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
2. Responsive audit procedures
Our main audit procedures for net realizable value of inventories are as follows:
(1) We obtained understandings of key internal controls related to net realizable value of inventories
assessed the design of these controls determined whether they had been executed and tested the
effectiveness of the operation;
(2) We reviewed the outcome of the Management’s previous estimates on the net realizable value or
their subsequent re-estimations;
(3) We selected items to assess the reasonableness of the estimated selling price and reviewed
whether the estimated selling price was consistent with sales contract price market selling price
historical data etc.;
(4) We assessed the reasonableness of estimation on cost to be incurred upon completion selling
expenses and relevant taxes and surcharges made by the Management;
(5) We tested whether the calculation of net realizable value of inventories made by the
Management was accurate;
(6) We identified whether there existed situations such as projects with slow development or sales
progress in combination with observation on inventory counting and assessed the reasonableness
of estimations on net realizable value of inventories made by the Management; and
(7) We checked whether information related to net realizable value of inventories had been
presented appropriately in the financial statements.IV. Other Information
The Management is responsible for the other information. The other information comprises the
information included in the Company’s annual report but does not include the financial statements
and our auditor’s report thereon.Our opinion on the financial statements does not cover the other information and we do not express
any form of assurance conclusion thereon.In connection with our audit of the financial statements our responsibility is to read the other
information and in doing so consider whether the other information is materially inconsistent with
the financial statements or our knowledge obtained in the audit or otherwise appears to be
materially misstated.If based on the work we have performed we conclude that there is a material misstatement of the
72ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
other information we are required to report that fact. We have nothing to report in this regard.V. Responsibilities of the Management and Those Charged with Governance for the Financial
Statements
The Management is responsible for preparing and presenting fairly the financial statements in
accordance with China Accounting Standards for Business Enterprises as well as designing
implementing and maintaining internal control relevant to the preparation of financial statements
that are free from material misstatement whether due to fraud or error.In preparing the financial statements the Management is responsible for assessing the Company’s
ability to continue as a going concern disclosing as applicable matters related to going concern
and using the going concern basis of accounting unless the Management either intends to liquidate
the Company or to cease operations or has no realistic alternative but to do so.Those charged with governance are responsible for overseeing the Company’s financial reporting
process.VI. Certified Public Accountant’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement whether due to fraud or error and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee
that an audit conducted in accordance with China Standardson Auditing will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if individually or in the aggregate they could reasonably be expected to
influence the economic decisions of users taken on the basis of these financial statements.
73ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
We exercise professional judgment and maintain professional skepticism throughout the audit
performed in accordance with China Standards on Auditing. We also:
(I) Identify and assess the risks of material misstatement of the financial statements whether due to
fraud or error design and perform audit procedures responsive to those risks and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud ishigher than for one resulting from error as
fraud may involve collusion forgery intentional omissions misrepresentations or the override of
internal control.(II) Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances.(III) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the Management.(IV) Conclude on the appropriateness of the Management’s use of the going concern basis of
accounting and based on the audit evidence obtained whether a material uncertainty exists related
to events or conditions that may cast significant doubt on the Company’s ability to continue as a
going concern.If we conclude that a material uncertainty exists we are required to draw attention in
our auditor’s report to the related disclosures in the financial statements or if such disclosures are
inadequate to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor’s report. However future events or conditions may cause the Company to
cease to continue as a going concern.(V) Evaluate the overall presentation structure and content of the financial statements and whether
the financial statements represent the underlying transactions and events in a manner that achieves
fair presentation.(VI) Obtain sufficient and appropriate audit evidence regarding the financial information of the
entities or business activities within the Company to express an opinion on the financial statements.We are responsible for the direction supervision and performance of the group audit. We remain
sole responsibility for our audit opinion.
74ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
We communicate with those charged with governance regarding the planned audit scope time
schedule and significant audit findings including any deficiencies in internal control of concern that
we identify during our audit.We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence and
where applicable related safeguards.From the matters communicated with those charged with governance we determine those matters
that were of most significance in the audit of the financial statements of the current period and are
therefore the key audit matters. We describe these matters in our auditor’s report unless law or
regulation precludes public disclosure about the matter or when in extremely rare circumstances
we determine that a matter should not be communicated in our report because the adverse
consequences of doing so wouldreasonably be expected to outweigh the public interest benefits of
such communication.Pan-China Certified Public Accountants LLP Chinese Certified Public Accountant:王焕森
(Engagement Partner)
Hangzhou · China Chinese Certified Public Accountant:蔡晓东
Date of Report:March 21 2025
75ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.Consolidated balance sheet as at December 31 2024
(Expressed in Renminbi Yuan)
Note
Assets Closing balance December 31 2023
No.Current assets:
Cash and bank balances 1 529242725.36 871019268.83
Settlement funds
Loans to other banks
Held-for-trading financial assets 2 987801938.51 879340201.92
Derivative financial assets
Notes receivable 3 100000.00
Accounts receivable 4 56672795.52 75100970.83
Receivables financing
Advances paid 5 1201106.21 409192.07
Premiums receivable
Reinsurance accounts receivable
Reinsurance reserve receivable
Other receivables 6 7438040.83 15893736.28
Financial assets under reverse repo
Inventories 7 3636840229.34 3915215921.96
Contract assets 8 30888723.09 27352596.92
Assets held for sale
Non-current assets due within one year
Other current assets 9 154192023.86 87175263.06
Total current assets 5871507151.87 5871507151.87
Non-current assets:
Loans and advances
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 10
Other equity instrument investments 11 14697341.18 14324411.35
Other non-current financial assets
Investment property 12 515925116.54 541542136.17
Fixed assets 13 17489207.57 19928049.77
Construction in progress
Productive biological assets
Oil & gas assets
Right-of-use assets 14 99641.48
Intangible assets 15
Development expenditures
Goodwill
Long-term prepayments 16 1719911.72 1598305.56
Deferred tax assets 17 33571496.94 36312811.26
Other non-current assets
Total non-current assets 583403073.95 613805355.59
Total assets 5987780656.67 6485312507.46
Legal representative:唐小平 Officer in charge of accounting:汪健飞 Head of accounting department:周宏普
76ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.Consolidated balance sheet as at December 31 2024 (continued)
(Expressed in Renminbi Yuan)
Note
Liabilities & Equity Closing balance December 31 2023
No.Current liabilities:
Short-term borrowings 19 1563000.00 3550000.00
Central bank loans
Loans from other banks
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 20 464488982.30 443259768.78
Advances received 21 1398988.78 420724.30
Contract liabilities 22 1298146232.35 1291448591.28
Financial liabilities under repo
Absorbing deposit and interbank deposit
Deposits for agency security transaction
Deposits for agency security underwriting
Employee benefits payable 23 22499368.29 22247017.36
Taxes and rates payable 24 27554810.01 40908986.48
Other payables 25 561016653.17 554469229.59
Handling fees and commissions payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one year 26 33888347.83 34056347.93
Other current liabilities 27 118304068.47 136364529.76
Total current liabilities 2528860451.20 2526725195.48
Non-current liabilities:
Insurance policy reserve
Long-term borrowings 28 62273677.82 179431851.02
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 29
Long-term payables
Long-term employee benefits payable
Provisions
Deferred income
Deferred tax liabilities 17 1259459.98 3012566.54
Other non-current liabilities
Total non-current liabilities 63533137.80 182444417.56
Total liabilities 2592393589.00 2709169613.04
Equity:
Share capital 30 1011660000.00 1011660000.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 31 978244910.11 978244910.11
Less: Treasury shares
Other comprehensive income 32 23060416.31 25319459.44
Special reserve
Surplus reserve 33 275253729.26 275253729.26
General risk reserve
Undistributed profit 34 1223893437.74 1400604385.39
Total equity attributable to the parent company 3512112493.42 3691082484.20
Non-controlling interest -116725425.75 85060410.22
Total equity 3395387067.67 3776142894.42
Total liabilities & equity 5987780656.67 6485312507.46
Legal representative:唐小平 Officer in charge of accounting:汪健飞 Head of accounting department:周宏普
77ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.Parent company balance sheet as at December 31 2024
(Expressed in Renminbi Yuan)
Assets Note No. Closing balance December 31 2023
Current assets:
Cash and bank balances 83656432.61 116977480.94
Held-for-trading financial assets 987801938.51 879340201.92
Derivative financial assets
Notes receivable
Accounts receivable 1 7200138.91 9750885.01
Receivables financing
Advances paid 200000.00
Other receivables 2 1751551390.53 1723164380.70
Inventories 315900.69 315818.69
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 1037878.95 810142.59
Total current assets 2831563680.20 2730558909.85
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 3 1160766664.14 1323365748.39
Other equity instrument investments 14697341.18 14324411.35
Other non-current financial assets
Investment property 409742121.37 433172839.90
Fixed assets 10736433.64 12683997.76
Construction in progress
Productive biological assets
Oil & gas assets
Right-of-use assets
Intangible assets
Development expenditures
Goodwill
Long-term prepayments 770175.82 1170295.66
Deferred tax assets 469690.21 792735.07
Other non-current assets
Total non-current assets 1597182426.36 1785510028.13
Total assets 4428746106.56 4516068937.98
Legal representative:唐小平 Officer in charge of accounting:汪健飞 Head of accounting department:周宏普
78ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.Parent company balance sheet as at December 31 2024 (continued)
(Expressed in Renminbi Yuan)
Liabilities & Equity Note No. Closing balance December 31 2023
Current liabilities:
Short-term borrowings
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 13684223.19 17535100.83
Advances received
Contract liabilities 95842.85 88985.71
Employee benefits payable 15935363.87 13431614.17
Taxes and rates payable 12314051.54 28060321.09
Other payables 854613311.67 759312118.85
Liabilities held for sale
Non-current liabilities due within one year 374768.60 375269.30
Other current liabilities 4792.15 4449.29
Total current liabilities 897022353.87 818807859.24
Non-current liabilities:
Long-term borrowings 62273677.82 62398851.02
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee benefits payable
Provisions
Deferred income
Deferred tax liabilities 1259459.98 3012566.54
Other non-current liabilities
Total non-current liabilities 63533137.80 65411417.56
Total liabilities 960555491.67 884219276.80
Equity:
Share capital 1011660000.00 1011660000.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 964711931.13 964711931.13
Less: Treasury shares
Other comprehensive income 2023005.89 1743308.51
Special reserve
Surplus reserve 252124115.85 252124115.85
Undistributed profit 1237671562.02 1401610305.69
Total equity 3468190614.89 3631849661.18
Total liabilities & equity 4428746106.56 4516068937.98
Legal representative:唐小平 Officer in charge of accounting:汪健飞 Head of accounting department:周宏普
79ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.Consolidated income statement for the year ended December 31 2024
(Expressed in Renminbi Yuan)
Note
Items Current period cumulative Preceding period comparative
No.I. Total operating revenue 407022191.44 530887720.68
Including: Operating revenue 1 407022191.44 530887720.68
Interest income
Premiums earned
Revenue from handling fees and commissions
II. Total operating cost 426847390.83 588334716.73
Including: Operating cost 1 332325650.30 444797642.10
Interest expenses
Handling fees and commissions
Surrender value
Net payment of insurance claims
Net provision of insurance policy reserve
Premium bonus expenditures
Reinsurance expenses
Taxes and surcharges 2 16741282.71 70999932.36
Selling expenses 3 13164672.93 21803202.14
Administrative expenses 4 70118532.01 55965931.72
R&D expenses
Financial expenses 5 -5502747.12 -5231991.59
Including: Interest expenses 2586822.94 1258720.92
Interest income 7998718.28 4804313.09
Add: Other income 6 842206.39 567272.39
Investment income (or less: losses) 7 1346463.59 10546418.38
Including: Investment income from associates and joint ventures -93927.64
Gains from derecognition of financial assets at amortized cost
Gains on foreign exchange (or less: losses)
Gains on net exposure to hedging risk (or less: losses)
Gains on changes in fair value (or less: losses) 8 18461736.59 7824348.71
Credit impairment loss 9 -8953080.52 579514.02
Assets impairment loss 10 -375188159.83 -392577463.42
Gains on asset disposal (or less: losses) 11 195840.20 -1000.00
III. Operating profit (or less: losses) -383120192.97 -430507905.97
Add: Non-operating revenue 12 2414677.03 386425.53
Less: Non-operating expenditures 13 267987.97 530564.09
IV. Profit before tax (or less: total loss) -380973503.91 -430652044.53
Less: Income tax expenses 14 -3377545.61 17012113.07
V. Net profit (or less: net loss) -377595958.30 -447664157.60
(I) Categorized by the continuity of operations
1. Net profit from continuing operations (or less: net loss) -377595958.30 -447664157.60
2. Net profit from discontinued operations (or less: net loss)
(II) Categorized bythe portion of equity ownership
1. Net profit attributable to owners of parent company (or less: net loss) -176710947.65 -250839542.09
2. Net profit attributable to non-controlling shareholders (or less: net loss) -200885010.65 -196824615.51
VI. Other comprehensive income after tax -3159868.45 -1023465.65
Items attributable to the owners of the parent company -2259043.13 -607261.41
(I) Not to be reclassified subsequently to profit or loss 279697.38 780086.07
1. Remeasurements of the net defined benefit plan
2. Items under equity method that will not be reclassified to profit or loss
3. Changes in fair value of other equity instrument investments 279697.38 780086.07
4. Changes in fair value of own credit risk
5. Others
(II) To be reclassified subsequently to profit or loss -2538740.51 -1387347.48
1. Items under equity method that may be reclassified to profit or loss
2. Changes in fair value of other debt investments
3. Profit or loss from reclassification of financial assets into other comprehensive income
4. Provision for credit impairment of other debt investments
5. Cash flow hedging reserve
6. Translation reserve -2538740.51 -1387347.48
7. Others
Items attributable to non-controlling shareholders -900825.32 -416204.24
VII. Total comprehensive income -380755826.75 -448687623.25
Items attributable to the owners of the parent company -178969990.78 -251446803.50
Items attributable to non-controlling shareholders -201785835.97 -197240819.75
VIII. Earnings per share (EPS):
(I) Basic EPS (yuan per share) -0.17 -0.2479
(II) Diluted EPS (yuan per share) -0.19 -0.2479
Legal representative:唐小平 Officer in charge of accounting:汪健飞 Head of accounting department:周宏普
80ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.Parent company income statement for the year ended December 31 2024
(Expressed in Renminbi Yuan)
Preceding period
Items Note No. Current period cumulative
comparative
I. Operating revenue 1 66748188.58 80149443.14
Less: Operating cost 1 35527944.94 33500490.21
Taxes and surcharges 10897850.09 10031959.33
Selling expenses 2662206.55 1232057.79
Administrative expenses 46350929.47 32052637.87
R&D expenses
Financial expenses -38414.46 -31995210.76
Including: Interest expenses 1258720.92 1258720.92
Interest income 1621311.93 29254205.70
Add: Other income 810791.58 417143.48
Investment income (or less: losses) 2 1346463.59 9434264.74
Including: Investment income from associates and joint ventures -93927.64
Gains from derecognition of financial assets at amortized cost
Gains on net exposure to hedging risk (or less: losses)
Gains on changes in fair value (or less: losses) 18461736.59 7824348.71
Credit impairment loss -208718.92 -19236221.85
Assets impairment loss -162599084.25 -258815813.46
Gains on asset disposal (or less: losses) 224495.95
II. Operating profit (or less: losses) -170616643.47 -225048769.68
Add: Non-operating revenue 4.56 355127.30
Less: Non-operating expenditures 31796.55 52058.53
III. Profit before tax (or less: total loss) -170648435.46 -224745700.91
Less: Income tax expenses -6709691.79 4443566.20
IV. Net profit (or less: net loss) -163938743.67 -229189267.11
(I) Net profit from continuing operations (or less: net loss) -163938743.67 -229189267.11
(II) Net profit from discontinued operations (or less: net loss)
V. Other comprehensive income after tax 279697.38 363881.83
(I) Not to be reclassified subsequently to profit or loss 279697.38 363881.83
1. Remeasurements of the net defined benefit plan
2. Items under equity method that will not be reclassified to profit or loss
3. Changes in fair value of other equity instrument investments 279697.38 363881.83
4. Changes in fair value of own credit risk
5. Others
(II) To be reclassified subsequently to profit or loss
1. Items under equity method that may be reclassified to profit or loss
2. Changes in fair value of other debt investments
3. Profit or loss from reclassification of financial assets into other comprehensive income
4. Provision for credit impairment of other debt investments
5. Cash flow hedging reserve
6. Translation reserve
7. Others
VI. Total comprehensive income -163659046.29 -228825385.28
VII. Earnings per share (EPS):
(I) Basic EPS (yuan per share)
(II) Diluted EPS (yuan per share)
Legal representative:唐小平 Officer in charge of accounting:汪健飞 Head of accounting department:周宏普
81ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.Consolidated cash flow statement for the year ended December 31 2024
(Expressed in Renminbi Yuan)
Note Current period Preceding period
Items
No. cumulative comparative
I. Cash flows from operating activities:
Cash receipts from sale of goods or rendering of services 448831107.10 1893492865.50
Net increase of client deposit and interbank deposit
Net increase of central bank loans
Net increase of loans from other financial institutions
Cash receipts from original insurance contract premium
Net cash receipts from reinsurance
Net increase of policy-holder deposit and investment
Cash receipts from interest handling fees and commissions
Net increase of loans from others
Net increase of repurchase
Net cash receipts from agency security transaction
Receipts of tax refund 10402585.93 1186861.59
Other cash receipts related to operating activities 2 (1) 15889802.02 56304822.67
Subtotal of cash inflows from operating activities 485135222.14 1950984549.76
Cash payments for goods purchased and services received 340363467.93 491021430.05
Net increase of loans and advances to clients
Net increase of central bank deposit and interbank deposit
Cash payments for insurance indemnities of original insurance contracts
Net increase of loans to others
Cash payments for interest handling fees and commissions
Cash payments for policy bonus
Cash paid to and on behalf of employees 76680764.14 86966612.34
Cash payments for taxes and rates 133539738.45 250127861.30
Other cash payments related to operating activities 2 (2) 51943474.32 77831397.88
Subtotal of cash outflows from operating activities 612539171.93 905947301.57
Net cash flows from operating activities -127403949.79 1045037248.19
II. Cash flows from investing activities:
Cash receipts from withdrawal of investments
Cash receipts from investment income 1 (1) 777600.00 699091.79
Net cash receipts from the disposal of fixed assets intangible assets and other long-term
1(2)519930.2129475.62
assets
Net cash receipts from the disposal of subsidiaries & other business units 1 (3) 568863.59 1644822.69
Other cash receipts related to investing activities 2 (3) 136800000.00
Subtotal of cash inflows from investing activities 1866393.80 139173390.10
Cash payments for the acquisition of fixed assets intangible assets and other long-term
1(4)1547315.831475412.00
assets
Cash payments for investments
Net increase of pledged borrowings
Net cash payments for the acquisition of subsidiaries & other business units
Other cash payments related to investing activities 2 (4) 90000000.00 600000000.00
Subtotal of cash outflows from investing activities 91547315.83 601475412.00
Net cash flows from investing activities -89680922.03 -462302021.90
III. Cash flows from financing activities:
Cash receipts from absorbing investments
Including: Cash received by subsidiaries from non-controlling shareholders as investments
Cash receipts from borrowings 1563000.00 169486610.82
Other cash receipts related to financing activities
Subtotal of cash inflows from financing activities 1563000.00 169486610.82
Cash payments for the repayment of borrowings 117562497.60 16200400.38
Cash payments for distribution of dividends or profits and for interest expenses 5251186.81 67383381.18
Including: Cash paid by subsidiaries to non-controlling shareholders as dividend or profit
Other cash payments related to financing activities
Subtotal of cash outflows from financing activities 122813684.41 83583781.56
Net cash flows from financing activities -121250684.41 85902829.26
IV. Effect of foreign exchange rate changes on cash and cash equivalents 99397.32 143288.32
V. Net increase in cash and cash equivalents -338236158.91 668781343.87
Add: Opening balance of cash and cash equivalents 859146413.35 190365069.48
VI. Closing balance of cash and cash equivalents 520910254.44 859146413.35
Legal representative:唐小平 Officer in charge of accounting:汪健飞 Head of accounting department:周宏普
82ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.Parent company cash flow statement for the year ended December 31 2024
(Expressed in Renminbi Yuan)
Preceding period
Items Current period cumulative
comparative
I. Cash flows from operating activities:
Cash receipts from sale of goods and rendering of services 73948934.37 86415239.73
Receipts of tax refund 78381.82 1143272.60
Other cash receipts related to operating activities 92592202.32 689725513.49
Subtotal of cash inflows from operating activities 166619518.51 777284025.82
Cash payments for goods purchased and services received 878298.06 3283183.54
Cash paid to and on behalf of employees 40882224.68 48032030.43
Cash payments for taxes and rates 24077901.52 150255838.40
Other cash payments related to operating activities 42931087.13 79379092.98
Subtotal of cash outflows from operating activities 108769511.39 280950145.35
Net cash flows from operating activities 57850007.12 496333880.47
II. Cash flows from investing activities:
Cash receipts from withdrawal of investments
Cash receipts from investment income 1346463.59 12516011.35
Net cash receipts from the disposal of fixed assets intangible assets and
other long-term assets
Net cash receipts from the disposal of subsidiaries & other business units
Other cash receipts related to investing activities 136800000.00
Subtotal of cash inflows from investing activities 1346463.59 149316011.35
Cash payments for the acquisition of fixed assets intangible assets and
365798.00578736.10
other long-term assets
Cash payments for investments
Net cash payments for the acquisition of subsidiaries & other business
units
Other cash payments related to investing activities 90000000.00 619280000.00
Subtotal of cash outflows from investing activities 90365798.00 619858736.10
Net cash flows from investing activities -89019334.41 -470542724.75
III. Cash flows from financing activities:
Cash receipts from absorbing investments
Cash receipts from borrowings 62586610.82
Other cash receipts related to financing activities
Subtotal of cash inflows from financing activities 62586610.82
Cash payments for the repayment of borrowings 125173.20 62586.60
Cash payments for distribution of dividends or profits and for interest
2026547.8462138698.60
expenses
Other cash payments related to financing activities
Subtotal of cash outflows from financing activities 2151721.04 62201285.20
Net cash flows from financing activities -2151721.04 385325.62
IV. Effect of foreign exchange rate changes on cash and cash equivalents
V. Net increase in cash and cash equivalents -33321048.33 26176481.34
Add: Opening balance of cash and cash equivalents 116977480.94 90800999.60
VI. Closing balance of cash and cash equivalents 83656432.61 116977480.94
Legal representative:唐小平 Officer in charge of accounting:汪健飞 Head of accounting department:周宏普
83ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.Consolidated statement of changes in equity for the year ended December 31 2024
(Expressed in Renminbi Yuan)
Current period cumulative
Equity attributable to parent company
Items Other equity instruments Less: Other General Non-controlling
Special Surplus Undistributed Total equity
Share capital Preferred Perpetual Capital reserve Treasury comprehensive risk
interest
Others reserve reserve profit
shares bonds shares income reserve
I. Balance at the end of prior year 1011660000.00 978244910.11 25319459.44 275253729.26 1400604385.39 85060410.22 3776142894.42
Add: Cumulative changes of accounting
pEorrliocri ecso rrection of prior period
Business combination under common control
Others
II. Balance at the beginning of current year 1011660000.00 978244910.11 25319459.44 275253729.26 1400604385.39 85060410.22 3776142894.42
III. Current period increase (or less: decrease) -2259043.13 -176710947.65 -201785835.97
(I) Total comprehensive income -2259043.13 -176710947.65 -201785835.97 -380755826.75
(II) Capital contributed or withdrawn by owners -380755826.75
1. Ordinary shares contributed by owners
2. Capital contributed by holders of other equity
i3n. sAtrmumouentts o f share-based payment included in
4eq. uOitthy ers
(III) Profit distribution -61711260.00 -61711260.00
1. Appropriation of surplus reserve
2. Appropriation of general risk reserve
3. Appropriation of profit to shareholders -61711260.00 -61711260.00
4. Others
(IV) Internal carry-over within equity
1. Transfer of capital reserve to capital
2. Transfer of surplus reserve to capital
3. Surplus reserve to cover losses
4. Changes in defined benefit plan carried over
t5o. Oretthaeinr ecdo meaprnreinhgens sive income carried over to
r6e. tOaitnheedr se arnings
(V) Special reserve
1. Current period appropriation
2. Current period use
(VI) Others
IV. Balance at the end of current period 1011660000.00 978244910.11 23060416.31 275253729.26 1223893437.74 -116725425.75 3 395387067.67
Legal representative:唐小平 Officer in charge of accounting:汪健飞 Head of accounting department:周宏普ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.Consolidated statement of changes in equity for the year ended December 31 2024 (continued)
(Expressed in Renminbi Yuan)
Preceding period comparative
Equity attributable to parent company
Items Other equity instruments Less: Other General Non-controlling
Special Surplus Undistributed Total equity
Share capital Preferred Perpetual Capital reserve Treasury comprehensive risk interest Others reserve reserve profit
shares bonds shares income reserve
I. Balance at the end of prior year 1011660000.00 978244910.11 25926720.85 275253729.26 1713155187.48 282301229.97 4286541777.67
Add: Cumulative changes of accounting
pEorrliocri ecso rrection of prior period
Business combination under common control
Others
II. Balance at the beginning of current year 1011660000.00 978244910.11 25926720.85 275253729.26 1713155187.48 282301229.97 4286541777.67
III. Current period increase (or less: decrease) -607261.41 -312550802.09 -197240819.75 -510398883.25
(I) Total comprehensive income -607261.41 -250839542.09 -197240819.75 -448687623.25
(II) Capital contributed or withdrawn by owners
1. Ordinary shares contributed by owners
2. Capital contributed by holders of other equity
3in. sAtrmumouents o f share-based payment included in
e4q. uOithy ers
(III) Profit distribution -61711260.00 -61711260.00
1. Appropriation of surplus reserve
2. Appropriation of general risk reserve
3. Appropriation of profit to shareholders -61711260.00 -61711260.00
4. Others
(IV) Internal carry-over within equity
1. Transfer of capital reserve to capital
2. Transfer of surplus reserve to capital
3. Surplus reserve to cover losses
4. Changes in defined benefit plan carried over
t5o. Orethaeinr ecdo meaprnreinhgens sive income carried over to
6re. tOaitnheedr se arnings
(V) Special reserve
1. Current period appropriation
2. Current period use
(VI) Others
IV. Balance at the end of current period 1011660000.00 978244910.11 25319459.44 275253729.26 1400604385.39 85060410.22 3776142894.42
Legal representative:唐小平 Officer in charge of accounting:汪健飞 Head of accounting department:周宏普
85ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.Parent company statement of changes in equity for the year ended December 31 2024
(Expressed in Renminbi Yuan)
Current period cumulative
Other equity instruments
Items Less: Other Special
Share capital Preferred Perpetual Capital reserve Treasury comprehensive Surplus reserve Undistributed profit Total equity Others reserve
shares bonds shares income
I. Balance at the end of prior year 1011660000.00 964711931.13 1743308.51 252124115.85 1401610305.69 3631849661.18
Add: Cumulative changes of accounting policies
Error correction of prior period
Others
II. Balance at the beginning of current year 1011660000.00 964711931.13 1743308.51 252124115.85 1401610305.69 3631849661.18
III. Current period increase (or less: decrease) 279697.38 -163938743.67 -163659046.29
(I) Total comprehensive income 279697.38 -163938743.67 -163659046.29
(II) Capital contributed or withdrawn by owners
1. Ordinary shares contributed by owners
2. Capital contributed by holders of other equity
3in. sAtrmumouenntt so f share-based payment included in equity
4. Others
(III) Profit distribution
1. Appropriation of surplus reserve
2. Appropriation of profit to shareholders
3. Others
(IV) Internal carry-over within equity
1. Transfer of capital reserve to capital
2. Transfer of surplus reserve to capital
3. Surplus reserve to cover losses
4. Changes in defined benefit plan carried over to
r5e. tOaitnheedr ecaormnipnrgesh ensive income carried over to retained
6ea. rOntihnegrss
(V) Special reserve
1. Current period appropriation
2. Current period use
(VI) Others
IV. Balance at the end of current period 1011660000.00 964711931.13 2023005.89 252124115.85 1237671562.02 3468190614.89
Legal representative:唐小平 Officer in charge of accounting:汪健飞 Head of accounting department:周宏普
86ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.Parent company statement of changes in equity for the year ended December 31 2024 (continued)
(Expressed in Renminbi Yuan)
Preceding period comparative
Other equity instruments
Items Less: Other Special Undistributed
Share capital Preferred Perpetual Capital reserve Treasury comprehensive Surplus reserve Total equity Others reserve profit
shares bonds shares income
I. Balance at the end of prior year 1011660000.00 964711931.13 1379426.68 252124115.85 1692510832.80 3922386306.46
Add: Cumulative changes of accounting policies
Error correction of prior period
Others
II. Balance at the beginning of current year 1011660000.00 964711931.13 1379426.68 252124115.85 1692510832.80 3922386306.46
III. Current period increase (or less: decrease) 363881.83 -290900527.11 -290536645.28
(I) Total comprehensive income 363881.83 -229189267.11 -228825385.28
(II) Capital contributed or withdrawn by owners
1. Ordinary shares contributed by owners
2. Capital contributed by holders of other equity
3in. sAtrmumouenntt so f share-based payment included in equity
4. Others
(III) Profit distribution -61711260.00 -61711260.00 -61711260.00
1. Appropriation of surplus reserve
2. Appropriation of profit to shareholders -61711260.00 -61711260.00 -61711260.00
3. Others
(IV) Internal carry-over within equity
1. Transfer of capital reserve to capital
2. Transfer of surplus reserve to capital
3. Surplus reserve to cover losses
4. Changes in defined benefit plan carried over to
r5e. tOaitnheedr ecaormnipnrgesh ensive income carried over to retained
6ea. rOntihnegrss
(V) Special reserve
1. Current period appropriation
2. Current period use
(VI) Others
IV. Balance at the end of current period 1011660000.00 964711931.13 1743308.51 252124115.85 1401610305.69 3631849661.18
Legal representative:唐小平 Officer in charge of accounting:汪健飞 Head of accounting department:周宏普
87ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Shenzhen Special Economic Zone
Real Estate & Properties (Group) Co. Ltd.Notes to Financial Statements
For the year ended December 31 2024
Monetary unit: RMB Yuan
I. 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
1011660000.00 yuan 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.The Company belongs to the real estate industry and is mainly engaged in real estate development
and commercial housingsales 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 eighth meeting of the
eighth session of the Board of Directors dated March 21 2024.II. Preparation basis of the financial statements
(I) Preparation basis
The financial statements have been prepared on the basis of going concern.(II) 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.III. Significant accounting policies and estimates
Important note: 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
88ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
actual production and operation features.(I) 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.(II) Accounting period
The accounting year of the Company runs from January 1 to December 31 under the Gregorian
calendar.(III) 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.(IV) 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 operationsis the currency of the primary economic environment in which they
operate. The currency used by the Company in the preparation of thefinancial statements is RMB
yuan.(V) Determination method and basis for selection of materiality
The Company prepares and discloses financial statements in compliance with the principle of
materiality. The items disclosed in notes to the financial statements involving materiality
judgements determination method and basis for selection of materiality are as follows:
Determination method and basis for selection of
Disclosed items involving materiality judgements
materiality
Recovery or reversal of bad debt provisions for important
Single item amount exceeds 0.5% of total assets
accounts receivable
Important write-off of accounts receivable Single item amount exceeds 0.5% of total assets
Accounts receivable with a significant single provision for
Single item amount exceeds 0.5% of total assets
bad debt reserves
Collection or reversal of important bad debt provisions for
Single item amount exceeds 0.5% of total assets
accounts receivable
Important write off of accounts receivable Single item amount exceeds 0.5% of total assets
Financing of accounts receivable with significant single
Single item amount exceeds 0.5% of total assets
provision for impairment
Recovery or reversal of significant impairment provisions
Single item amount exceeds 0.5% of total assets
for accounts receivable financing
89ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Important write off of accounts receivable financing Single item amount exceeds 0.5% of total assets
Other receivables with significant single provision for bad
Single item amount exceeds 0.5% of total assets
debt reserves
Recovery or reversal of bad debt provisions for important
Single item amount exceeds 0.5% of total assets
other receivables
Important write off of other receivables Single item amount exceeds 0.5% of total assets
Important overdue interest receivable Single item amount exceeds 0.5% of total assets
Important dividends receivable with an aging of over 1 year Single item amount exceeds 0.5% of total assets
Contract assets with significant single provision for
Single item amount exceeds 0.5% of total assets
impairment
Recovery or reversal of impairment provisions for
Single item amount exceeds 0.5% of total assets
important contract assets
Important write off contract assets Single item amount exceeds 0.5% of total assets
Significant changes in the book value of contract assets The amount of change exceeds 0.5% of the total assets
Long term accounts receivable with significant single
Single item amount exceeds 0.5% of total assets
provision for bad debt reserves
Recovery or reversal of important long-term accounts
Single item amount exceeds 0.5% of total assets
receivable bad debt provisions
Important write off of long-term receivables Single item amount exceeds 0.5% of total assets
Important prepayments with an aging of over 1 year Single item amount exceeds 0.5% of total assets
Important debt investments Single item amount exceeds 0.5% of total assets
Important other debt investments Single item amount exceeds 0.5% of total assets
The total investment of a single project exceeds 0.5% of
Important ongoing construction projects
the total assets
Important overdue loans Single item amount exceeds 0.5% of total assets
Important overdue interest payable Single item amount exceeds 0.5% of total assets
Important accounts payable with an aging of over 1 year Single item amount exceeds 0.5% of total assets
Other important payables with an aging of over 1 year Single item amount exceeds 0.5% of total assets
Important prepayments with an aging of over 1 year or
Single item amount exceeds 0.5% of total assets
overdue payments
Important contract liabilities with an aging of over 1 year Single item amount exceeds 0.5% of total assets
Significant changes in the book value of contractual
The amount of change exceeds 0.5% of the total assets
liabilities
Important estimated liabilities Single item amount exceeds 0.5% of total assets
Important cash flows from investment activities Single item amount exceeds 5% of total assets
Total assets/total revenue/total profit exceed 15% of the
Important overseas operating entities
group's total assets/total revenue/total profit
Important capitalized R&D projects and outsourced R&D
The individual amount exceeds the total assets by X%
projects
Total assets/total revenue/total profit exceed 15% of the
Important subsidiaries non wholly owned subsidiaries
group's total assets/total revenue/total profit
90ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
The book value of a single long-term equity investment
exceeds 15% of the group's net assets and the
Important joint ventures and associated enterprises
investment income calculated using the single equity
method exceeds 15% of the group's total profit
(VI) 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.(VII) 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
The parent company brings all its controlled subsidiaries into the consolidation scope. The
consolidated financial statements are compiled by the parent company according to "CASBE 33 –
Consolidated Financial Statements" based on relevant information and the financial statements of
the parent company and its subsidiaries.(VIII) 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:
(1) its assets including its share of any assets held jointly;
(2) its liabilities including its share of any liabilities incurred jointly;
(3) its revenue from the sale of its share of the output arising from the joint operation;
(4) its share of the revenue from the sale of the assets by the joint operation; and
91ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
(5) its expenses including its share of any expenses incurred jointly.
(IX) 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.(Ⅹ) 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.(XI) Financial instruments
1. Classification of financial assets and financial liabilities
Financial assets are classified into the following three categories when initially recognized: (1)
financial assets at amortized cost; (2) financial assets at fair value through other comprehensive
income; (3) financial assets at fair value through profit or loss.Financial liabilities are classified into the following four categories when initially recognized: (1)
financial liabilities at fair value through profit or loss; (2) financial liabilities that arise when a
transfer of a financial asset does not qualify for derecognition or when the continuing involvement
approach applies; (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); (4) financial liabilities at amortized cost.
2. Recognition criteria measurement method and derecognition of financial assets and financial
liabilities
92ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
(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
1) 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.
2) 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.
3) 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.
4) 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
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
93ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
(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) 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.
(4) Derecognition of financial assets and financial liabilities
1) Financial assets are derecognized when:
a. the contractual rights to the cash flows from the financial assets expire; or
b. the financial assets have been transferred and the transfer qualifies for derecognition in
accordance with "CASBE 23 – Transfer of Financial Assets".
2) Only when the underlying present obligations of a financial liability are relieved totally or
partly may the financial liability be derecognized accordingly.
3. 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
94ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
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: (1) 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 recognized independently as an asset or a liability; (2) 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: (1) the carrying
amount of the transferred financial asset as of the date of derecognition; (2) 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: (1) the carrying amount of the portion which is derecognized;
(2) 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).
4. 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:
(1) Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities
that the Company can access at the measurement date;
(2) 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
95ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
intervals; market-corroborated inputs;
(3) 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.
5. 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.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
96ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
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.
6. 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: (1) currently has a legally
enforceable right to set off the recognized amounts; and (2) 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.(XII) 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 determination Method for measuring expected
Categories
of portfolio credit loss
Based on historical credit loss
Bank acceptance receivable experience the current situation
and the forecast of future
Type of notes economic conditions the Company
calculates expected credit loss
Trade acceptance receivable through exposure at default and
lifetime expected credit loss rate.Accounts receivable – Portfolio Based on historical credit loss
grouped with balances due experience the current situation and
from related parties within the Nature of receivables the forecast of future economic
consolidation scope conditions the Company calculates
Accounts receivable – Portfolio expected credit loss through
97ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Basis for determination Method for measuring expected
Categories
of portfolio credit loss
grouped with property sales exposure at default and lifetime
receivable expected credit loss rate.Accounts receivable – Portfolio
grouped with balances due
from other customers
Other receivables – Portfolio
grouped with government
funds receivable
Other receivables – Portfolio
grouped with employee petty
cash receivable Based on historical credit loss
Other receivables – Portfolio experience the current situation and
grouped with advances the forecast of future economic
received and paid on behalf of Nature of receivables conditions the Company calculates
others expected credit loss through
Other receivables – Portfolio exposure at default and 12-month or
grouped with other lifetime expected credit loss rate.intercompany balances
receivable
Other receivables – Portfolio
grouped with balances due
from related parties receivable
Based on historical credit loss
Contract assets – Portfolio
experience the current situation and
grouped with product sales
the forecast of future economic
Nature of receivables conditions the Company calculates
Contract assets – Portfolio
expected credit loss through
grouped with engineering
exposure at default and lifetime
construction
expected credit loss rate.
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.(XIII) 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
(1) Materials and equipment dispatched from storage are accounted for with specific identification
method.
(2) 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.
(3) Developed products dispatched from storage are accounted for with cost coefficient allocation
98ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
method.
(4) 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.
(5) 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 andafter 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
(1) Low-value consumables
Low-value consumables are amortized with usage times.
(2) 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.(XIV) 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
99ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
(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 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.
(2) 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:
1) 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.
2) In the case of consolidated financial statements 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" the carrying amount of the
acquirer’s 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 acquirer’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.
100ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
(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 that obtained through non-cash assets exchange is
determined according to "CASBE 7 – Non-cash Assets Exchange".
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":
1) these transactions are entered into at the same time or in contemplation of each other;
2) these transactions form a single transaction designed to achieve an overall commercial effect;
3) the occurrence of one transaction is dependent on the occurrence of at least one other
transaction; and
4) 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
1) 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".
2) Consolidated financial statements
Before the Company’s loss of control the difference between the disposal consideration and the
proportionate share of net assets in the disposed subsidiary from acquisition date or combination
date to the disposal date is adjusted to capital reserve (capital premium) if the balance of capital
101ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
reserve is insufficient to offset any excess is adjusted to retained earnings.When the Company loses control the remained equity is remeasured at the loss-of-control-date
fair value. The aggregated value of disposal consideration and the fair value of the remained
equity less the share of net assets in the disposed subsidiary held before the disposal from the
acquisition date or combination date to the disposal date is recognized in investment income in the
period when the Company loses control over such subsidiary and meanwhile goodwill is offset
correspondingly. Other comprehensive income related to equity investments in former subsidiary
is reclassified as investment income upon the Company’s loss of control.
(3) Accounting treatment of bundled transaction
1) Stand-alone 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 carrying amount of long-term equity investments
corresponding to the disposed investments is recognized as other comprehensive income at the
stand-alone financial statements and reclassified as profit or loss in the period when the Company
loses control over such subsidiary.
2) 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.(XV) Investment property
1. Investment property includes land use right of leased-out property and of property held for
capital appreciation and buildings that have been leased out.
2. The initial measurement of investment property is based on its cost and subsequent
measurement is made using the cost model the depreciation or amortization method is the same as
that of fixed assets and intangible assets.(XVI) Fixed assets
1. Recognition principles of fixed assets
Fixed assets are tangible assets held for use in the production of goods or rendering of services for
rental to others or for administrative purposes and expected to be used during more than one
accounting year. Fixed assets are recognized if and only if it is probable that future economic
benefits associated with the assets will flow to the Company and the cost of the assets can be
measured reliably.
102ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
2. Depreciation method of different categories of fixed assets
Depreciation Useful life Residual value Annual depreciation
Categories
method (years) proportion (%) rate (%)
Buildings and Straight-line
305.003.17
structures method
Straight-line
Transport facilities 6 5.00 15.83
method
Electronic equipment Straight-line
55.0019.00
and others method
(XVII) Construction in progress
1. 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.
2. 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.(XVIII) Borrowing costs
1. Recognition principle of borrowing costs capitalization
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
(1) 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.
(2) 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.
(3) 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 and capitalized amount of borrowing costs
103ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
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.(XIX) Intangible assets
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
Software economic benefits related to intangible Straight-line method
assets 3-5 years
3. Intangible assets with indefinite useful lives are not amortized. The company reviews the useful
life of such intangible assets at each accounting period.(XX) Impairment of part 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.(XXI) Long-term prepayments
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.
104ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
(XXII) Employee benefits
1. Employee benefits include short-term employee benefits post-employment benefits
termination benefits and other long-term employee benefits.
2. Short-term employee benefits
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.
3. 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.
(2) Accounting treatment by the Company for defined benefit plan usually involves the
following steps:
1) 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;
2) 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;
3) 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.
4. 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
105ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
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.
5. 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. The Company recognizes the
cost of employee benefits arising from other long-term employee benefits as the followings: (1)
service cost; (2) net interest on the net liability or net assets of other long-term employee benefits;
and (3) changes as a result of remeasurement of the net liability or net assets of other long-term
employee benefits. As a practical expedient the net total of the aforesaid amounts is recognized in
profit or loss or included in the cost of a relevant asset.(XXIII) 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.(XXIV) 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.(XXV) Revenue
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: (1) the customer
simultaneously receives and consumes the economic benefits provided by the Company’s
performance as the Company performs; (2) the customer can control goods as they are created by
the Company’s performance; (3) goods created during the Company’s performance have
irreplaceable uses and the Company has an enforceable right to the payments for performance
106ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
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: (1) the Company has a present right to payments for the goods i.e. the customer is
presently obliged to pay for the goods; (2) the Company has transferred the legal title of the goods
to the customer i.e. the customer has legal title to the goods; (3) the Company has transferred
physical possession of the goods to the customer i.e. the customer has physically possessed the
goods; (4) 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; (5) the customer has accepted the goods; (6) 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
107ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
performance obligation and allocate the transaction price to each performance obligation on a
relative stand-alone selling price basis.
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: (1) the developed products have
been completed and accepted; (2) the Company have signed sales contract and fulfilled
obligations under the contract; (3) 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 (4) 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.(XXVI) 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
108ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
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:
1. 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;
2. The costs enhance resources of the Company that will be used in satisfying performance
obligations in the future; and
3. 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.(XXVII) 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.(XXVIII) Government grants
1. Government grants shall be recognized if and only if the following conditions are all met: (1)
the Company will comply with the conditions attaching to the grants; (2) 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
109ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
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 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
(1) In the circumstance that government appropriates interest subvention to lending bank who
provides loans for the Company with a policy subsidised interest rate borrowings are carried at
the amount received with relevant borrowings cost computed based on the principal and the
policy subsidised interest rate.
(2) In the circumstance that government directly appropriates interest subvention to the Company
the subsidised interest shall offset relevant borrowing cost.(XXIX) 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
110ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
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: (1) business
combination; and (2) 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: (1) the Company has the legal right to settle off
current tax assets against current tax liabilities; (2) the deferred tax assets and the deferred tax
liabilities relate to income taxes levied by the same tax authority on either: 1) the same taxable
entity; or 2) 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.(XXX) 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
111ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
date.
(1) 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.
(2) 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.
(1) Operating lease
112ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual 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.
(2) 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.(XXXI) 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:
1. that engages in business activities from which it may earn revenues and incur expenses;
2. 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
3. for which accounting information regarding financial position financial performance and cash
flows is available through analysis.(XXXII) Significant changes in accounting policies
Changes in accounting policies arising from changes in CASBEs
1. The company has been implementing the provisions of "Regarding the Classification of Current
Liabilities and Non-current Liabilities" in the"Interpretation of China Accounting Standards for
Business Enterprises No. 17" promulgated by the Ministry of Finance since January 1 2024. This
change in accounting policy has no impact on the company's financial statements.
2. The company has been implementing the provisions of "Regarding the Disclosure of Supplier
Financing Arrangements" in the"Interpretation of China Accounting Standards for Business
Enterprises No. 17" promulgated by the Ministry of Finance since January 1 2024. This change
in accounting policy has no impact on the company's financial statements.
3. The company has been implementing the provisions of "Regarding the Accounting Treatment of
Sale and Leaseback Transactions" in the"Interpretation of China Accounting Standards for
113ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Business Enterprises No. 17" promulgated by the Ministry of Finance since January 1 2024.This change in accounting policy has no impact on the company's financial statements.
4. The company has been implementing the provisions of "Regarding the Accounting Treatment of
Warranty-type Quality Assurances That Are Not Separate Performance Obligations" in
the"Interpretation of China Accounting Standards for Business Enterprises No. 18" promulgated
by the Ministry of Finance since December 6 2024. This change in accounting policy has no
impact on the company's financial statements.IV. Taxes
(I) Main taxes and tax rates
Taxes Tax bases Tax rates
The output tax calculated based on the revenue
from sales of goods or rendering of services in
9%6%5%
Value-added tax (VAT) accordance with the tax law net of the input
3%
tax that is allowed to be deducted in the
current period
Progressive tax
The incremental amount arising from the rates based on
transfer of state-owned land use right and the exceeding
Land appreciation tax
buildings and structures that are constructed proportion of
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 balance after deducting 30% of
Housing property tax 1.2% 12%
the cost; for housing property levied on the
basis of rent housing property tax is levied at
the rate of 12% of lease income
Urban maintenance and
Turnover tax actually paid 7%
construction tax
Education surcharge Turnover tax actually paid 3%
Local education surcharge Turnover tax actually paid 2%
Enterprise income tax Taxable income 25% 16.5%
Different enterprise income tax rates applicable to different taxpayers:
Taxpayers Income tax rate
Shenzhen Huazhan Construction Supervision Co.Ltd.(the "Huazhan Supervision") and Shantou
Special Economic Zone Xiangshan Real Estate 20%
Development Co. Ltd. (the "Shantou Songshan
Company")
Subsidiaries registered in Hong Kong SAR 16.5%
Taxpayers other than the above-mentioned 25%
(II) Tax preferential policies
Pursuant to the "Announcement of the Ministry of Finance and the State Taxation Administration
on the Enterprise Income Tax Preferential Policies for Small Enterprises with Meager Profit and
114ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Individually-owned Businesses" (Announcement [2023] No. 6of 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.V. Notes to items of consolidated financial statements
(I) Notes to items of the consolidated balance sheet
1. Cash and bank balances
(1) Details
Project Closing balance Initial number
Cash on hand 38975.98 18414.04
Bank deposit 526814068.83 838926014.14
Other monetary funds 2389680.55 32074840.65
total 529242725.36 871019268.83
Among them: the total amount of funds stored
4660706.045230453.64
overseas
(2) Other remarks
As of December 31 2024 the restricted funds in bank deposits amounted to 8332470.92 yuan
of which 2306548.48 yuan was frozen funds due to litigation 158549.08 yuan was suspended
accounts and payments 5674439.78 yuan was the construction fund guarantee deposit for the urban
renewal project and surrounding public facilities in Longgang District Shenzhen 142778.00 yuan
was the land reclamation cost of the Shenfang Guangmingli project and 50155.58 yuan was the
fixed-term project guarantee deposit.As of December 31 2024 other monetary funds of 2389680.55 yuan were seven-day notice
deposits.
2. Held-for-trading financial assets
Project Closing balance Initial number
Classified as financial assets measured at fair value
987801938.51879340201.92
with changes recognized in current profit or loss
Among them: Fund 987801938.51 879340201.92
total 987801938.51 879340201.92
3. Notes receivable
115ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
(1) Details
project Closing balance Initial number
Bank acceptance bill
Commercial Acceptance Bill 100000.00
total 100000.00
(2) Provision for bad debts
Closing balance
book balance bad debt reserves
Types Provision
amount of Proportion amount of book value
Proportion
money (%) money
(%)
Provision for bad debts by
100000.00100.00100000.00
combination
Among them: bank acceptance
bills
Commercial
100000.00100.00100000.00
Acceptance Bill
total 100000.00 100.00 100000.00
4. Accounts receivable
(1) Age analysis
Closing book
Aging of accounts Initial book balance
balance
Within 1 year 46635449.13 71406321.18
1-2 years 17841452.58 9482461.05
2-3 years 8345221.16 7444786.11
3-4 years 5644029.79 169754.01
4-5 years 46903.69 3027934.33
More than 5 years 21078733.20 18050798.87
total 99591789.55 109582055.55
Less: Bad debt provision 42918994.03 34481084.72
Total book value 56672795.52 75100970.83
(2) Provision for bad debts
1) Details on categories
Types Closing balance
116ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
book balance bad debt reserves
Provision
amount of Proportion amount of book value
Proportion
money (%) money
(%)
Individual provision for bad
24983383.2525.0924983383.25100.00-
debts
Provision for bad debts by
74608406.3074.9117935610.7824.0456672795.52
combination
total 99591789.55 100.00 42918994.03 43.09 56672795.52
(Continued from the table above)
Initial number
book balance bad debt reserves
Types Provision
amount of Proportion amount of book value
Proportion
money (%) money
(%)
Individual provision for bad
24983383.2522.8024983383.25100.00
debts
Provision for bad debts by
84598672.3077.209497701.4711.2375100970.83
combination
total 109582055.55 100.00 34481084.72 31.47 75100970.83
2) Significant accounts receivable with provision made on an individual basis
Initial number Closing balance
Unit Name bad debt bad debt Provision Basis for
book balance book balance
reserves reserves ratio (%) provision
Proxy import
and export Expected
11574556.0011574556.0011574556.0011574556.00100.00
business irretrievable
payment
Long term
unrecovered Expected
10084109.6010084109.6010084109.6010084109.60100.00
sales irretrievable
proceeds
Accounts
receivable of Expected
2314755.462314755.462314755.462314755.46100.00
hanging pin irretrievable
company
Other
Expected
customer 1009962.19 1009962.19 1009962.19 1009962.19 100.00
irretrievable
payments
Subtotals 24983383.25 24983383.25 24983383.25 24983383.25 100.00
3) Accounts receivable with provision for bad debts made on a collective basis
project Closing balance
117ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
book balance bad debt reserves Provision ratio (%)
Accounts receivable 74608406.30 17935610.78
from other customer 24.04
combinations
Subtotals 74608406.30 17935610.78 24.04
(3) Changes in provision for bad debts
1)Details
Current period change amount
project Initial number Withdrawal Write Closing balance
Provision other
or reversal off
Individual
provision for 24983383.25 24983383.25
bad debts
Provision for
bad debts by 9497701.47 8437909.31 17935610.78
combination
total 34481084.72 8437909.31 42918994.03
(4) Details of the top 5 debtorswith largest balances of accounts receivable and contracted asset
Proportion
Provision for
Closing book balance (%) of the
bad debts of
total ending
accounts
balance of
Unit Name receivable and
accounts
accounts provision for
Contract assets Subtotals receivable
receivable impairment of
and contract
contract assets
assets
Shenzhen Hongteng
Investment
Management Co. Ltd 11867873.64 895261.55 12763135.19 9.69 11894731.49
Hubei Chuheng Real
Estate Co. Ltd 7769835.68 353150.85 8122986.53 6.17 243689.60
Shenzhen
Construction
Engineering Group
Co. Ltd 6834028.53 3297601.34 10131629.87 7.70 303948.90
Jiangsu Huajian
Construction Co. Ltd.Shenzhen Branch 6263994.27 6558487.27 12822481.54 9.74 384674.45
Shenzhen Guangming
Construction First
Construction
Engineering Co. Ltd 3215705.25 6885594.15 10101299.40 7.67 303038.98
118ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Proportion
Provision for
Closing book balance (%) of the
bad debts of
total ending
accounts
balance of
Unit Name receivable and
accounts
accounts provision for
Contract assets Subtotals receivable
receivable impairment of
and contract
contract assets
assets
total 35951437.37 17990095.16 53941532.53 40.97 13103225.56
(5) Other remarks
As of December 31 2024 the factoring balance of accounts receivable that have been
transferred but cannot be derecognized is RMB 4918250.30.
5. Advances paid
(1) Age analysis
Agin Closing balance Initial number
g of impairme impairme
book Proportio book Proportio book
account nt book value nt
balance n (%) balance n (%) value
s provision provision
Within 1100322. 1100322.
91.6112271.613.0012271.61
1 year 58 58
1159.000.101159.00
years
2-3196920.4196920.4
48.12
years 6 6
More
200000.0200000.0
than 3 99624.63 8.29 99624.63 48.88
00
years
1201106.1201106.409192.0409192.0
total 100.00 - 100.00
212177
(2) Top 5 prepaid amounts
Accounting for
prepaid funds
Unit Name book balance
Proportion of
balance (%)
Tianqi Hardware Fire Protection Trading Company
500000.0041.63
Longgang District Shenzhen
Shenzhen Power Supply Bureau Co. Ltd 484020.96 40.30
Huizhou Huiyang Power Supply Bureau of
98840.298.23
Guangdong Power Grid Co. Ltd
Shenzhen Jili Cat Wood Products Co. Ltd 81368.58 6.77
119ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Accounting for
prepaid funds
Unit Name book balance
Proportion of
balance (%)
Shenzhen Hu Hongwei Building Materials Co. Ltd 24030.00 2.00
Subtotals 1188259.83 98.93
6. Other receivables
(1) Other receivables categorized by nature
Closing book
Nature of Payment Initial book balance
balance
Combination of accounts receivable from related
161393309.25161393309.25
parties
Combination of accounts receivable from
3019837.72165460.00
government departments
Accounts receivable employee reserve fund
533912.40841714.00
combination
Accounts receivable collection and payment
787071.98360901.91
combination
Combination of other receivables and payables 37783095.18 44888290.81
total 203517226.53 207649675.97
Less: Bad debt provision 196079185.70 191755939.69
Total book value 7438040.83 15893736.28
(2) Age analysis
Initial book
Aging of accounts Closing book balance
balance
Within 1 year 4132917.44 6047963.14
1-2 years 1542936.54 15390258.93
2-3 years 12060828.62 103956.68
3-4 years 200.00
4-5 years 100.00
More than 5 years 185780543.93 186107197.22
total 203517226.53 207649675.97
Less: Bad debt provision 196079185.70 191755939.69
Total book value 7438040.83 15893736.28
(3) Provision for bad debts
120ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
1) Details on categories
Closing balance
book balance bad debt reserves
Types Provision
amount of Proportion amount of book value
Proportion
money (%) money
(%)
Individual provision for bad
190176205.8493.44189807225.6499.81368980.20
debts
Provision for bad debts by
13341020.696.566271960.0647.017069060.63
combination
Subtotals 203517226.53 100 196079185.70 96.35 7438040.83
(Continued from the table above)
Initial number
book balance bad debt reserves
Types Provision
amount of Proportion amount of book value
Proportion
money (%) money
(%)
Individual provision for bad
191444224.0692.20191075243.8699.81368980.20
debts
Provision for bad debts by
16205451.917.80680695.834.2015524756.08
combination
Subtotals 207649675.97 100.00 191755939.69 92.35 15893736.28
2) Other receivables with significant single provision for bad debt reserves
Initial number Closing balance
Unit Provisio
bad debt bad debt Basis for
Name book balance book balance n ratio
reserves reserves provision
(%)
Great Wall
Expected
Canada
89035748.07 89035748.07 89035748.07 89035748.07 100.00 irretrievabl
(Vancouver)
e
Limited
Expected
Baili Co.
20251959.02 20251959.02 19393335.84 19393335.84 100.00 irretrievabl
Ltd
e
Berkton Expected
Australia 12559290.58 12559290.58 12559290.58 12559290.58 100.00 irretrievabl
Limited e
Guangdong
Huizhou Expected
Luofushan 10465168.81 10465168.81 10465168.81 10465168.81 100.00 irretrievabl
Mineral e
Water
121ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Initial number Closing balance
Unit Provisio
bad debt bad debt Basis for
Name book balance book balance n ratio
reserves reserves provision
(%)
Beverage
Co. Ltd
Xi'an
Xinfeng Expected
Property 8419205.19 8419205.19 8419205.19 8419205.19 100.00 irretrievabl
Trading Co. e
Ltd
Shenzhen
Shenxi Expected
Architectura 7660529.37 7660529.37 7660529.37 7660529.37 100.00 irretrievabl
l Decoration e
Company
Beijing
Shenfang Expected
Property 6905673.69 6533817.09 6905673.69 6533817.09 94.62 irretrievabl
Management e
Co. Ltd
Bao'an Expected
Shopping 6343030.65 6343030.65 6343030.65 6343030.65 100.00 irretrievabl
Mall e
Shenzhen
Expected
Nanyang
3168721.00 3168721.00 3168721.00 3168721.00 100.00 irretrievabl
Hotel Co.e
Ltd
Shenzhen
Runhua Expected
Automobile 3072764.42 3072764.42 3072764.42 3072764.42 100.00 irretrievabl
Trading e
Company
Shenzhen
Local Expected
Building 3000000.00 3000000.00 3000000.00 3000000.00 100.00 irretrievabl
Materials e
Company
Expected
Junxin and
2800000.00 2800000.00 2800000.00 2800000.00 100.00 irretrievabl
Company
e
Harbin Expected
Power 1970000.00 1970000.00 1970000.00 1970000.00 100.00 irretrievabl
District e
122ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Initial number Closing balance
Unit Provisio
bad debt bad debt Basis for
Name book balance book balance n ratio
reserves reserves provision
(%)
Xinle Feed
Processing
Factory
Expected
New Mo
1868735.45 1868735.45 1868735.45 1868735.45 100.00 irretrievabl
Company
e
177520826.2177148969.6176662203.0176290346.4
Subtotals 99.79
5577
3) Other receivables with combined provision for bad debts
Closing balance
Combination Name
book balance bad debt reserves Provision ratio (%)
Combination of accounts
receivable from related
parties
Combination of accounts
receivable from 3019837.72
government departments
Accounts receivable
employee reserve fund 533912.40
combination
Accounts receivable
collection and payment 787071.98
combination
Combination of other
9000198.596271960.0669.69
receivables and payables
Subtotals 13341020.69 6271960.06 47.01
(4) Changes in bad debt provision
first phase phase 2 Third Stage
Expected credit loss Expected credit loss
Next 12 months for the entire for the entire
project total
Expected credit duration (no credit duration (credit
loss impairment has impairment already
occurred) occurred)
Initial number 177917.80 374179.82 191203842.07 191755939.69
Initial figures in this
——————
period
--Entering the
second stage
123ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
first phase phase 2 Third Stage
Expected credit loss Expected credit loss
Next 12 months for the entire for the entire
project total
Expected credit duration (no credit duration (credit
loss impairment has impairment already
occurred) occurred)
--Entering the third
stage
--Return to the
second stage
--Return to the first
stage
Provision for this
31641.72483529.49515171.21
period
Withdrawal or
reversal in this
period
Verification in this
period
Other changes 3808074.80 3808074.80
Closing balance 209559.52 857709.31 195011916.87 196079185.70
Provision ratio for
bad debts at the end 0.1 0.42 95.82 96.35
of the period (%)
(5) Top 5 Other Accounts Receivable Amounts
Proportion of
Nature of Closing book Account End of term bad
Unit Name other receivables
Payment balance Age debt provision
balance (%)
Great Wall Canada Related More
(Vancouver) party 89035748.07 than 5 43.75 89035748.07
Limited transactions years
Related More
Baili Co. Ltd party 20251959.02 than 5 9.95 20251959.02
transactions years
Related More
Berkton Australia
party 12559290.58 than 5 6.17 12559290.58
Limited
transactions years
Guangdong
Related More
Huizhou Luofushan
party 10465168.81 than 5 5.14 10465168.81
Mineral Water
transactions years
Beverage Co. Ltd
Xi'an Xinfeng Related More
8419205.194.148419205.19
Property Trading party than 5
124ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Proportion of
Nature of Closing book Account End of term bad
Unit Name other receivables
Payment balance Age debt provision
balance (%)
Co. Ltd transactions years
Subtotals 140731371.67 69.15 140731371.67
7. Inventory
(1) Details
proje Closing balance Initial number
ct book balance Provision book value book balance Provision book value
develop
2276063206.6711787110.11564276096.43572697115.8391731506.83180965608.9
ment
587019
cost
Product
2127137511.52072329800.4
develop 54807711.11 733935274.64 733935274.64
87
ment
raw
49504.0049504.00
material
Finishe
273224.3138891.91234332.40304426.2438891.91265534.33
d goods
4403473942.5766633713.23636840229.34306986320.6391770398.73915215921.9
total
404826
(2) Provision for inventory depreciation
1) Details
Decrease in
Increase in this period
this period
project Initial number Closing balance
Return
Provision other other
or sale
development
391731506.81320055603.37711787110.18
cost
Product
54807711.1154807711.11
development
Finished goods 38891.91 38891.91
total 391770398.72 374863314.48 766633713.20
2) The specific basis for determining the net realizable value and the reasons for the reversal or
cancellation of inventory impairment provisions in the current period
Reverse inventory Decrease in resale
Determine the net realizable value depreciation inventory value
project
The specific basis Reasons for Reasons for
Preparation Preparation
125ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
The net realizable
The estimated selling price of value of inventory Inventory
inventory minus the estimated for which provision consumption/sale for
developme costs to be incurred until for inventory which provision for
nt cost completion estimated sales impairment has inventory impairment
expenses and related taxes and been made in has been made in this
fees previous periods period
has increased
The net realizable
Determine the net realizable value value of inventory Inventory
by subtracting the estimated for which provision consumption/sale for
Product selling price of the related for inventory which provision for
development development product from the impairment has inventory impairment
product cost estimated sales been made in has been made in this
expenses and related taxes previous periods period
has increased
The net realizable
Determine the net realizable value value of inventory Inventory
by subtracting the estimated for which provision consumption/sale for
Finished selling price of the relevant for inventory which provision for
goods inventory goods from the product impairment has inventory impairment
cost estimated sales expenses been made in has been made in this
and related taxes previous periods period
has increased
(3) Capitalization of borrowing costs
The ending balance includes
Calculation standards and basis for
project Capitalized amount of
capitalization amount
borrowing costs
Shenfang Linxin Calculate according to the interest rate
40384162.95
Garden stipulated in the loan contract
Deep Room Bright Calculate according to the interest rate
5016736.09
Inside stipulated in the loan contract
Subtotals 45400899.04
(4) Other instructions
1) Inventory - Development Costs
Commen Expected Expected total End of term
project name cement completio investment Opening balance ending balance provision for price
time n time (10000 yuan) decline
Shenfang Linxin
In 2021 300000.00 2310161672.58 2247771298.55 711787110.18
Garden
Deep Room
In 2022 2024 152060.00 1234243535.11
Bright Inside
126ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Shantou
Xinfeng 28291908.11 28291908.10
Building
subtotal 452060.00 3572697115.80 711787110.182276063206.65
2) Inventory - Developed Products
Time for End of term
project name Opening Increase in this Decrease in ending balance
Completion decline
balance period this period
Price
preparation
Shenzhen
Guangming 2024 1518438771.54 85967140.96 1432471630.58
Lane
Tianyue Bay 29086610.00
2021464226283.2222825658.12441400625.10
Phase II
Tianyue Bay
2017198499941.347360561.54191139379.8024949281.00
Phase I
Jinye Island
Haitian Pavilion
199739734763.87264770.1739999534.04771820.11
Multi story
Apartment
Shenfang Cuilin
201817044647.259347944.157696703.10
Garden
Yuejing
20146121027.076121027.07
Oriental Project
Golden Leaf
20105641278.545641278.54
Island Phase 10
Golden Leaf
20082222776.302222776.30
Island Phase 11
Beijing Xinfeng
304557.05304557.05
Building
Whampoa
140000.00140000.00
Estate
subtotal 733935274.64 1518703541.71 125501304.77 2127137511.58 54807711.11
8. Contract assets
(1) Details
Closing balance Initial number
project book impairment book impairment
book value book value
balance provision balance provision
Completed 32059525.05 1170801.96 30888723.09 28198553.53 845956.61 27352596.92
127ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Closing balance Initial number
project book impairment book impairment
book value book value
balance provision balance provision
but
unsettled
project
funds
total 32059525.05 1170801.96 30888723.09 28198553.53 845956.61 27352596.92
(2) Details on provision for impairment
1) Details on categories
Closing balance
book balance impairment provision
Types Provision
amount of Proportion amount of book value
Proportion
money (%) money
(%)
Provision for impairment by
32059525.05100.001170801.963.6530888723.09
combination
total 32059525.05 100.00 1170801.96 3.65 30888723.09
(Continued from the table above)
Initial number
book balance impairment provision
Types Provision
Proportion amount of book value
amount of money Proportion
(%) money
(%)
Provision for impairment by
28198553.53100.00845956.613.0027352596.92
combination
total 28198553.53 100.00 845956.61 3.00 27352596.92
2) Contract assets with combined provision for impairment
Closing balance
project
book balance impairment provision Provision ratio (%)
Engineering
construction 32059525.05 1170801.96 3.65
combination
Subtotals 32059525.05 1170801.96 3.65
(3) Changes in impairment provision
Current period change amount
Initial Closing
project Withdrawal Resale/write
number Provision other balance
or reversal off
Provision for
845956.61324845.351170801.96
impairment
128ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Current period change amount
Initial Closing
project Withdrawal Resale/write
number Provision other balance
or reversal off
by
combination
total 845956.61 324845.35 1170801.96
9. Other current assets
(1) Details
Closing balance Initial number
project book impairment book impairment
book value book value
balance provision balance provision
advance
payment of 63654695.18 63654695.18 6212008.00 6212008.00
income tax
Prepaid
value-added 41955887.75 41955887.75 1974376.95 1974376.95
tax
Prepay land
value-added 28100310.83 28100310.83 3472045.32 3472045.32
tax
Input tax to be
9375930.689375930.6864189088.6164189088.61
deducted
Contract
6508438.396508438.396815071.016815071.01
acquisition cost
Prepaid urban
construction
4587785.464587785.464251916.574251916.57
tax and
surcharges
other 8975.57 8975.57 260756.60 260756.60
Total 154192023.86 154192023.86 87175263.06 87175263.06
(2) Contract acquisition cost
Amortization Provision for
Increase in Closing
project Initial number for this impairment in
this period balance
period this period
Deep Room
5417176.0161225.87367858.495110543.39
Bright Inside
Lin Xinyuan 1397895.00 1397895.00
Subtotals 6815071.01 61225.87 367858.49 6508438.39
10. Long-term equity investments
129ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
(1) Categories
Closing balance Initial number
project impairment impairment
book balance book value book balance book value
provision provision
Investment in joint
19424671.4719424671.4719424671.4719424671.47
ventures
Investment in joint
32898465.0932898465.0932898465.0932898465.09
ventures
others 167761564.39 167761564.39 167761564.39 167761564.39
total 220084700.95 220084700.95 220084700.95 220084700.95
(2) Details
Initial number Changes in this period
Investment
gains and
Other
The invested make an losses
impairment Reduce comprehensive
entity book value additional recognized
provision investment Income
investment under the
adjustment
equity
method
joint venture
Guangdong
Huizhou
Luofushan 9969206.09
Mineral Water
Beverage Co. Ltd
Fengkai Xinghua
9455465.38
Hotel
Subtotals 19424671.47
joint venture
Shenzhen
Ronghua
Electromechanical 1076954.64
Engineering Co.Ltd
Shenzhen Runhua
Automobile 1445425.56
Trading Company
Dongyi Real
30376084.89
Estate Co. Ltd
Subtotals 32898465.09
130ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Initial number Changes in this period
Investment
gains and
Other
The invested make an losses
impairment Reduce comprehensive
entity book value additional recognized
provision investment Income
investment under the
adjustment
equity
method
others
Baili Co. Ltd 201100.00
Berkton
Corporation 906630.00
Australia
Shenzhen
Shenfang
10000000.00
Department Store
Co. Ltd
Shantou Xinfeng
58547652.25
Building
Lianfeng Cement
Manufacturing in
Fengkai County 56228381.64
Guangdong
Province
Jiangmen
Xinjiang Real 9037070.89
Estate Co. Ltd
Xi'an Xinfeng
Property Trading 32840729.61
Co. Ltd
Subtotals 167761564.39
total 220084700.95
(Continued from the table above)
Changes in this period Closing balance
Declare the
The invested Other Provision
distribution of impairment
entity equity for other book value
cash dividends or provision
changes impairment
profits
joint venture
Guangdong
9969206.09
Huizhou
131ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Changes in this period Closing balance
Declare the
The invested Other Provision
distribution of impairment
entity equity for other book value
cash dividends or provision
changes impairment
profits
Luofushan
Mineral Water
Beverage Co. Ltd
Fengkai Xinghua
9455465.38
Hotel
Subtotals 19424671.47
joint venture
Shenzhen
Ronghua
Electromechanical 1076954.64
Engineering Co.Ltd
Shenzhen Runhua
Automobile 1445425.56
Trading Company
Dongyi Real
30376084.89
Estate Co. Ltd
Subtotals 32898465.09
others
Baili Co. Ltd 201100.00
Berkton
Corporation 906630.00
Australia
Shenzhen
Shenfang
10000000.00
Department Store
Co. Ltd
Shantou Xinfeng
58547652.25
Building
Lianfeng Cement
Manufacturing in
Fengkai County 56228381.64
Guangdong
Province
Jiangmen
9037070.89
Xinjiang Real
132ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Changes in this period Closing balance
Declare the
The invested Other Provision
distribution of impairment
entity equity for other book value
cash dividends or provision
changes impairment
profits
Estate Co. Ltd
Xi'an Xinfeng
Property Trading 32840729.61
Co. Ltd
Subtotals 167761564.39
total 220084700.95
Note: The equity accounted for in other equity investments is the equity of a subsidiary of the
company that is not included in the consolidation scope. This subsidiary may have completed the
revocation process but the company has not written off its long-term equity investments or ceased
operations many years ago and the company entity no longer exists. The company is unable to
effectively control it. Please refer to Note 6 for specific details
11. Other equity instrument investments
Changes in this period
Gains and losses
make an recognized in other
project Initial number Reduce
additional comprehensive other
investment
investment income for the
current period
Shantou
Small and
Medium
sized
14324411.35372929.83
Enterprise
Financing
Guarantee
Co. Ltd
total 14324411.35 372929.83
(Continued from the table above)
Dividend Accumulated gains and losses
income recognized in other
project Closing balance
recognized in comprehensive income at the
this period end of this period
Shantou Small and
Medium sized 14697341.18 777600.00 6408705.61
Enterprise Financing
133ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Dividend Accumulated gains and losses
income recognized in other
project Closing balance
recognized in comprehensive income at the
this period end of this period
Guarantee Co. Ltd
total 14697341.18 777600.00 6408705.61
12. Investment property
Houses and
project land-use right total
buildings
Original book value
Initial number 1044744895.39 109170407.59 1153915302.98
Increased amount in
1368720.311636931.863005652.17
this period
1) Outsourcing
2) Other (exchange
1368720.311636931.863005652.17
rate fluctuations)
Decreased amount in
3176542.733176542.73
this period
1) Disposal 3176542.73 3176542.73
2) Other transfers out
Closing balance 1042937072.97 110807339.45 1153744412.42
Accumulated depreciation
and accumulated
amortization
Initial number 508643374.73 508643374.73
Increased amount in
26203509.6426203509.64
this period
1) Provision or
25304981.0525304981.05
amortization
2) Other (exchange
898528.59898528.59
rate fluctuations)
Decreased amount in
2020271.902020271.90
this period
1) Disposal 2020271.90 2020271.90
2) Other transfers out
Closing balance 532826612.47 532826612.47
134ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Houses and
project land-use right total
buildings
impairment provision
Initial number 14128544.62 89601247.46 103729792.08
Increased amount in
1343506.361343506.36
this period
1) Provision
2) Other (exchange
1343506.361343506.36
rate fluctuations)
Decreased amount in
80615.0380615.03
this period
1) Disposal 80615.03 80615.03
2) Other transfers out
Closing balance 14047929.59 90944753.82 104992683.41
book value
Closing book value 496062530.91 19862585.63 515925116.54
Initial book value 521972976.04 19569160.13 541542136.17
13. Fixed assets
Transportation Electronic devices
project Houses and buildings total
equipment and others
Original book value
Initial number 100422074.10 7115129.61 8083418.39 115620622.10
Increased amount
-376600.00362801.36739401.36
in this period
1) Purchase 376600.00 362801.36 739401.36
2) Other additions -
Decreased amount
454163.00100612.00554775.00
in this period
1) Disposal or
454163.00100612.00554775.00
scrapping
2) Other reductions
Closing balance 99967911.10 7491729.61 8345607.75 115805248.46
Accumulated
depreciation
Initial number 83816391.64 5821431.05 6054749.64 95692572.33
135ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Transportation Electronic devices
project Houses and buildings total
equipment and others
Increased amount
2164937.53231936.77433449.882830324.18
in this period
1) Provision 2164937.53 231936.77 433449.88 2830324.18
2) Other additions
Decreased amount
130072.9976782.63206855.62
in this period
1) Disposal or
130072.9976782.63206855.62
scrapping
2) Other reductions
Closing balance 85851256.18 6053367.82 6411416.89 98316040.89
impairment provision
Initial number
Increased amount
in this period
1) Provision
2) Other additions
Decreased amount
in this period
1) Disposal or
scrapping
2) Other reductions
Closing balance
book value
Closing book value 14116654.92 1438361.79 1934190.86 17489207.57
Initial book value 16605682.46 1293698.56 2028668.75 19928049.77
14. Right-of-use assets
project Houses and buildings total
Original book value
Initial number 431779.61 431779.61
Increased amount in this period
1) Rent in
136ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
project Houses and buildings total
Decreased amount in this period 431779.61 431779.61
1) Disposal 431779.61 431779.61
Closing balance 431779.61
Accumulated depreciation
Initial number 332138.13 332138.13
Increased amount in this period 99641.48 99641.48
1) Provision 99641.48 99641.48
Decreased amount in this period 431779.61 431779.61
1) Disposal 431779.61 431779.61
Closing balance
impairment provision
Initial number
Increased amount in this period
1) Provision
Decreased amount in this period
1) Disposal
Closing balance
book value
Closing book value
Initial book value 99641.48 99641.48
15. Intangible assets
project software total
Original book value
Initial number 2192000.00 2192000.00
Increased amount in this period
1) Purchase
Decreased amount in this period
1) Disposal
137ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
project software total
Closing balance 2192000.00 2192000.00
accumulated amortization
Initial number 2192000.00 2192000.00
Increased amount in this period
1) Provision
Decreased amount in this period
1) Disposal
Closing balance 2192000.00 2192000.00
impairment provision
Initial number
Increased amount in this period
1) Provision
Decreased amount in this period
1) Disposal
Closing balance
book value
Closing book value
Initial book value
16. Long-term prepayments
Amortization
Increase in Other Closing
project Initial number for this
this period decreases balance
period
Decoration
1309140.94808132.01538965.121578307.83
cost
other 289164.62 147560.73 141603.89
total 1598305.56 808132.01 686525.85 1719911.72
17. Deferred tax assets and deferred tax liabilities
(1) Deferred tax assets before offset
project Closing balance Initial number
138ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Deductible Deductible defer
defer
Temporary Temporary Income tax
Income tax assets
differences differences assets
Impairment of
16963840.114225272.58
Assets 17887164.32 4471791.08
Deductible
34153954.308538488.5843152112.4910788028.12
losses
Provision for
Land Value 2140368.96 535092.24
Added Tax
Unrealized
profits from
78405738.3619601434.5880397191.4020099297.85
internal
transactions
Contract
3839130.81959782.702660481.88665120.47
estimated cost
total 134285987.79 33571496.94 145313994.84 36312811.26
(2) Unreset deferred income tax liabilities
Closing balance Initial number
taxable defer taxable defer
project
Temporary Income tax Temporary Income tax
differences liabilities differences liabilities
Changes in fair value
of trading financial 7824348.72 1956087.18
assets
Unfired interest 2340498.77 585124.68 1901506.08 475376.52
Changes in fair value
of other equity
2697341.18674335.302324411.36581102.84
instrument
investments
total 5037839.95 1259459.98 12050266.16 3012566.54
(3) Details of unconfirmed deferred tax assets
project Closing balance Initial number
deductable temporary difference 1313992914.93 927951667.74
Deductible losses 94399508.95 68296307.42
total 1408392423.88 996247975.16
(4) The deductible losses of unconfirmed deferred tax assets will expire in the following years
particular year Closing balance Initial number notes
2024688456.49
139ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
particular year Closing balance Initial number notes
20251629.251629.25
2026346891.06346891.06
202748904614.3848904614.38
202818354716.2418354716.24
202926791658.02
total 94399508.95 68296307.42
18. Assets with title or use right restrictions
(1) Details
1) Details on assets with restrictions at the balance sheet date
Closing book
project Closing book value limited type Reason for restriction
balance
Construction funds for
public facilities within
and around the
Longgang District urban
Monetary
5817217.78 5817217.78 detain renewal project in
funds
Shenzhen; Land
reclamation cost of
Shenfang Guangmingli
project
Monetary
2306548.48 2306548.48 freeze Litigation freeze
funds
Monetary
50155.58 50155.58 detain Construction deposit
funds
Monetary Stop payment suspend
158549.08 158549.08 detain
funds account
accounts
4918250.30 4770702.79 pledge Short term loan pledge
receivable
Litigation Supplier litigation
inventory 234599800.76 161509611.70
preservation preservation
Investment
137329055.83 38505029.10 mortgage Loan Mortgage
real estate
total 385179577.81 213117814.51
2) Initial asset restrictions
Closing book
project Closing book value limited type Reason for restriction
balance
140ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Closing book
project Closing book value limited type Reason for restriction
balance
Construction funds for
public facilities within
and around the
Longgang District urban
Monetary
5817217.78 5817217.78 detain renewal project in
funds
Shenzhen; Land
reclamation cost of
Shenfang Guangmingli
project
Monetary
5943085.18 5943085.18 freeze Litigation freeze
funds
Monetary
50000.00 50000.00 detain Construction deposit
funds
Monetary Stop payment suspend
62552.52 62552.52 detain
funds account
accounts
27890361.58 27890361.58 pledge Short term loan pledge
receivable
Investment
103165591.84 44297197.87 mortgage Loan Mortgage
real estate
total 142928808.90 84060414.93
19. Short-term borrowings
project Closing balance Initial number
Factoring 1563000.00 3550000.00
total 1563000.00 3550000.00
20. Accounts payable
(1) Details
project Closing balance Initial number
Engineering material procurement and construction
450147073.38442529992.29
procurement funds
other 14341908.92 729776.49
total 464488982.30 443259768.78
(2) Important accounts payable with an aging of over 1 year
Reasons for non repayment or
project Closing balance
carryover
141ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Reasons for non repayment or
project Closing balance
carryover
China Railway Erju Group
41216237.77 Not yet settled
Corporation
Huizhou Jinlongsheng Industrial Co.
84950000.00 Not yet settled
Ltd
Huizhou Huiyang Hongfa Industry and
50350000.00 Not yet settled
Trade Co. Ltd
Huizhou Mingxiang Economic
41851375.00 Not yet settled
Information Consulting Co. Ltd
Guangzhou Mingji Construction Co.
12572856.16 Not yet settled
Ltd
Subtotals 230940468.93
21. Advances received
project Closing balance Initial number
rent 1398988.78
other 420724.30
total 1398988.78 420724.30
22. Contract liabilities
(1) Details
project Closing balance Initial number
Prepaid sales proceeds 1284864387.02 1290868600.78
Advance payment for engineering projects 8705289.17 172464.62
other 4576556.16 407525.88
total 1298146232.35 1291448591.28
(2) Important contract liabilities with an aging of over 1 year
Reason for not
project Closing balance
carrying forward
The handover of the
property has not
Deep Room Bright Inside 1247568338.53
been completed
with the owner yet
total 1247568338.53
(3) Collection status of pre-sale properties for important projects
142ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Residential
Time for
project name Closing balance Initial number signing ratio
Completion
(%)
Deep Room Bright At the end of
1270976624.801247568338.5399.19
Inside 2024
Subtotals 1270976624.80 1247568338.53
23. Employee benefits payable
(1) Details
Increase in this Decrease in this
project Initial number Closing balance
period period
Short term salary 22194258.15 69233244.39 68984279.66 22443222.88
Post employment
benefits - defined 52759.21 9647408.70 9644022.50 56145.41
contribution plan
total 22247017.36 78880653.09 78628302.16 22499368.29
(2) Short term salary details
Increase in this Decrease in this
project Initial number Closing balance
period period
Salary bonuses
allowances and 21950880.02
subsidies 57640964.51 57426676.00 22165168.53
Employee welfare
150000.002626688.832776688.83-
expenses
Social insurance
2608605.392608605.39
premiums
Among them: Medical
2238417.402238417.40
insurance premiums
Work injury
163443.46163443.46
insurance premium
Maternity
206744.53206744.53
insurance premium
Employment Security
Fund for Persons with 23777.78 23777.78
Disabilities
Housing Provident
4580020.704580020.70
Fund
Union funds and
employee education 93378.13 1753187.18 1568510.96 278054.35
funds
Subtotals 22194258.15 69233244.39 68984279.66 22443222.88
143ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
(3) Set the details of the withdrawal plan
Initial Increase in this Decrease in Closing
project
number period this period balance
basic pension insurance 6234606.90 6234606.90
Unemployment insurance
354727.78354727.78
premium
Enterprise annuity payment 52759.21 3058074.02 3054687.82 56145.41
Subtotals 52759.21 9647408.7 9644022.5 56145.41
24. Taxes and rates payable
project Closing balance Initial number
value added tax 1926338.10 6952681.57
corporate income tax 15240318.16 25379573.98
Withholding and paying personal income tax on
2614360.35666822.33
behalf of others
urban maintenance and construction tax 1231330.83 1379662.47
land-value increment tax 4645184.15 4646137.48
Property tax 352632.19 250796.18
Education surcharges 868224.47 592022.63
Local Education Surcharge 546470.88 382272.44
other 129950.88 659017.40
total 27554810.01 40908986.48
25. Other payable
(1) Details
project Closing balance Initial number
interest payable 16535277.94 16535277.94
Other payables 544481375.22 537933951.65
total 561016653.16 554469229.59
(2) Payable interest
1) Details
project Closing balance Initial number
Non financial institution loan interest (payable to
16535277.9416535277.94
parent company interest)
144ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
project Closing balance Initial number
Subtotals 16535277.94 16535277.94
2) Important overdue and unpaid interest situations
Overdue
Borrower Unit Reason for overdue
amount
Shenzhen Investment Holding Co.
16535277.94 Not yet paid
Ltd
Subtotals 16535277.94
(3) Other payables
1) Details
project Closing balance Initial number
Non related party transactions 177773291.96 177620294.46
Related party transactions 234015438.99 234129312.99
deposit 25941548.11 27861196.50
other 106751096.16 98323147.70
Subtotals 544481375.22 537933951.65
2) Other important payables with an aging of over 1 year
Reasons for non repayment or
project Closing balance
carryover
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 and
26894095.89 Not yet settled
Trade Co. Ltd
Huizhou Mingxiang Economic
26131960.68 Not yet settled
Information Consulting Co. Ltd
Subtotals 362127338.08
26. Non-current liabilities due within one year
project Closing balance Initial number
Long-term loans due within one year 33888347.83 34001293.81
Lease liabilities due within one year 55054.12
total 33888347.83 34056347.93
27. Other current liabilities
145ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
project Closing balance Initial number
Pending output tax amount 114948818.17 115574168.18
Factoring 3355250.30 20790361.58
total 118304068.47 136364529.76
28. Long-term borrowings
project Closing balance Initial number
mortgage loan 96162025.65 213433144.83
Less: Long term loans due within one year 33888347.83 34001293.81
total 62273677.82 179431851.02
29. Lease liabilities
project Closing balance Initial number
lease accounts payable 55054.12
Less: Lease liabilities due within one year 55054.12
total
30. Share capital
Changes in current period (decrease indicated by
"-")
Conversio
proj issue n of
Initial number stock Closing balance
ect New housing othe subtota
dividen
stoc provident r l
d
k fund into
shares
Total
numbe 1011660000.0 1011660000.0
r of 0 0
shares
31. Capital reserve
Increase in this Decrease in this
project Initial number Closing balance
period period
Capital premium (equity 557433036.93 557433036.93
146ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Increase in this Decrease in this
project Initial number Closing balance
period period
premium)
Other capital reserve 420811873.18 420811873.18
total 978244910.11 978244910.11
32. Other comprehensive income (OCI)
Current amount incurred
Net amount after tax of other comprehensive income Less:
previously
included in
Less:
other
previously
comprehensive
included in
income
other After tax
project Initial number Amount before Less: After tax transferred to Closing balance
comprehensive attribution to
income tax for Income tax attribution to the retained
income minority
this period expenses parent company earnings in the
transferred to shareholders
current period
profit or loss in
(after tax
the current
attributable to
period
the parent
company)
Other comprehensive
income that cannot be
2159512.75372929.8493232.46279697.382439210.13
reclassified into profit or
loss
Among them: Re
measuring the
amount of changes
in the defined
benefit plan
Other
comprehensive
income that cannot
be converted to
profit or loss under
the equity method
Changes in fair
value of other
2159512.75372929.8493232.46279697.382439210.13
equity instrument
investments
147ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Current amount incurred
Net amount after tax of other comprehensive income Less:
previously
included in
Less:
other
previously
comprehensive
included in
income
other After tax
project Initial number Amount before Less: After tax transferred to Closing balance
comprehensive attribution to
income tax for Income tax attribution to the retained
income minority
this period expenses parent company earnings in the
transferred to shareholders
current period
profit or loss in
(after tax
the current
attributable to
period
the parent
company)
Changes in fair
value of
enterprise's own
credit risk
Reclassify other
comprehensive income into 23159946.69 -3439565.83 -2538740.51 -900825.32 20621206.18
profit or loss
Among them: Other
comprehensive
income convertible
into profit or loss
under the equity
method
Changes in fair
value of other debt
investments
The amount of
reclassified
financial assets
included in other
comprehensive
income
Provision for credit
impairment of
other debt
investments
Cash flow hedging
reserve
148ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Current amount incurred
Net amount after tax of other comprehensive income Less:
previously
included in
Less:
other
previously
comprehensive
included in
income
other After tax
project Initial number Amount before Less: After tax transferred to Closing balance
comprehensive attribution to
income tax for Income tax attribution to the retained
income minority
this period expenses parent company earnings in the
transferred to shareholders
current period
profit or loss in
(after tax
the current
attributable to
period
the parent
company)
Translation
difference of
foreign currency 23159946.69 -3439565.83 -2538740.51 -900825.32 20621206.18
financial
statements
Total other comprehensive
25319459.44-3066635.9993232.46-2259043.13-900825.3223060416.31
income
33. Surplus reserve
Increase in Decrease in
project Initial number Closing balance
this period this period
statutory surplus
275253729.26275253729.26
reserve
total 275253729.26 275253729.26
34. Undistributed profits
Number of this Number of the same
project
issue period last year
Undistributed profit at the end of the previous period
1400604385.391713155187.48
before adjustment
Adjust the total amount of undistributed profits at the
beginning of the period (increase+ decrease -)
Adjust the initial undistributed profits in the later
1400604385.391713155187.48
stage
Add: Net profit attributable to the owners of the
-176710947.65-250839542.09
parent company for the current period
Less: Withdrawal of statutory surplus reserve
149ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Number of this Number of the same
project
issue period last year
Common Stock dividends payable 61711260.00
other
ending 1223893437.74 1400604385.39
(II) Notes to items of the consolidated income statement
1. Operating revenue/Operating cost
(1) Details
Number of this issue Number of the same period last year
project
income cost income cost
main business
399806208.89329523182.30524099615.63442138382.34
income
other business
7215982.552802468.006788105.052659259.76
income
total 407022191.44 332325650.30 530887720.68 444797642.10
Among them:
Revenue
generated from 337868729.90 290264756.49 446315732.01 399950397.80
contracts with
customers
(2) Income breakdown information
1) Revenue generated from contracts with customers broken down by type of goods or services
Number of this issue Number of the same period last year
project
income cost income cost
real estate 162523053.49 127086267.87 118580624.34 80235849.12
engineering
160327744.72154348805.43324243778.50317088117.19
construction
Property
management and 15017931.69 8829683.19 3491329.17 2626431.49
others
Subtotals 337868729.90 290264756.49 446315732.01 399950397.80
2) Revenue generated from contracts with customers broken down by operating region
Number of this issue Number of the same period last year
project
income cost income cost
Guangdong
337173047.00290264756.49445625466.90399950397.80
Province
America 695682.90 690265.11
150ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Number of this issue Number of the same period last year
project
income cost income cost
Subtotals 337868729.90 290264756.49 446315732.01 399950397.80
3) The revenue generated from contracts with customers is decomposed by the time of transfer of
goods or services
Number of this Number of the same
project
issue period last year
Recognize revenue at a certain point in time 162523053.49 118580624.34
Recognize revenue during a certain period of time 175345676.41 327735107.67
Subtotals 337868729.90 446315732.01
(3) Information related to performance obligations
The types of
The nature of The expected quality
Time for Is he the
Important the goods refund to assurance
fulfilling main
project payment promised by customers that provided by
contractual responsible
terms the company the company the company
obligations person
for transfer undertakes and related
obligations
After the
contract is
signed
At the time Guaranteed
Sale of advance commercial
of product correct not have Quality
goods payment of housing
delivery Assurance
the contract
price shall be
made
Collect
according to Engineering
the contract construction
When
Provide agreement property
providing correct not have not have
services upon management
services
completion of and other
general services
services
(4) The income recognized in this period which is included in the beginning book value of the
contractual liability is RMB 43880252.75.
2. Taxes and surcharges
Number of this Number of the same
project
issue period last year
Land value-added tax 2714249.05 59631025.69
151ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Number of this Number of the same
project
issue period last year
Property tax 9956557.84 5921317.90
Urban maintenance and construction tax 1012893.50 2033111.82
Education surcharge 411819.81 805738.62
Local Education Surcharge 274953.45 603255.93
Land use tax 1120370.46 1078003.07
Stamp duty and other taxes and fees 1250438.60 927479.33
total 16741282.71 70999932.36
3. Selling expenses
Number of this Number of the same
project
issue period last year
Sales agency fees and commissions 1863418.96 6411581.44
Employee Compensation 3362219.19 3456886.44
property management fee 3906657.98 2885601.45
cost of operation 136489.27 399643.39
Advertising expenses 2488123.19 8162439.28
other 1407764.34 487050.14
total 13164672.93 21803202.14
4. Administrative expenses
Number of this Number of the same
project
issue period last year
Employee Compensation 48292124.93 41241958.09
Intermediary agency fees 6587170.53 2496191.21
legal fees 4504258.91 2354717.09
Business entertainment expenses 532812.45 1705735.91
depreciation charge 3020894.71 2558956.30
office expenses 1634523.51 1600402.92
repair cost 380818.94 390746.46
Travel expenses 235772.33 463694.27
152ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Number of this Number of the same
project
issue period last year
Other amortization expenses 399870.13
water and electricity 395856.79 347076.86
other 4534298.91 2406582.48
total 70118532.01 55965931.72
5. Financial expenses
Number of this Number of the same
project
issue period last year
interest expenses 2586822.94 1258720.92
Less: Interest income 7998718.28 4804313.09
Exchange gains and losses -465656.39 -1846042.29
Service Charge 374804.61 159642.87
total -5502747.12 -5231991.59
6. Other income
Amount included
Number of
in non recurring
Number of this the same
project gains and losses
issue period last
for the current
year
period
grants related to income 753298.54 440049.96 753298.54
Refund of handling fees for withholding
86280.2868364.83
personal income tax
Value added tax additional deduction 2627.57 58857.60
total 842206.39 567272.39 753298.54
7. Investment income
Number of this Number of the same
project
issue period last year
Long term equity investment income accounted for
-93927.64
by equity method
Investment income generated from the disposal of
568863.599941254.23
long-term equity investments
Investment income of trading financial assets during
161491.79
the holding period
153ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Number of this Number of the same
project
issue period last year
Dividend income obtained from other equity
777600.00537600.00
instrument investments during the holding period
total 1346463.59 10546418.38
8. Gains from changes in fair value
Number of this Number of the same
project
issue period last year
Trading financial assets 18461736.59 7824348.71
Among them: the fair value change income generated
from financial assets designated as measured at fair
18461736.597824348.71
value with changes recognized in current profit or
loss
total 18461736.59 7824348.71
9. Credit impairment losses
Number of this Number of the same
project
issue period last year
Bad debt loss on accounts receivable -8437909.31 -439750.78
Other accounts receivable bad debt losses -515171.21 938414.80
Bad debt loss on accounts receivable 80850.00
total -8953080.52 579514.02
10. Asset impairment losses
Number of this Number of the same
project
issue period last year
inventory falling price loss -374863314.48 -391731506.81
Impairment loss of contract assets -324845.35 -845956.61
total -375188159.83 -392577463.42
11. Gains from asset disposal
Include as non
Number of the
Number of this recurring in this period
project same period last
issue Amount of profit and
year
loss
154ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Include as non
Number of the
Number of this recurring in this period
project same period last
issue Amount of profit and
year
loss
Income from disposal of fixed
195840.20-1000.00195840.20
assets
total 195840.20 -1000.00 195840.20
12. Non-operating revenue
Include as non
Number of the
Number of this recurring in this period
project same period last
issue Amount of profit and
year
loss
Gains from destruction and
1269.60
scrapping of non current assets
Unpaid accounts payable 362451.86
Fines and breach of contract
2170800.004000.002170800.00
income
other 243877.03 18704.07 243877.03
total 2414677.03 386425.53 2414677.03
13. Non-operating expenditures
Number of the Include as non recurring
Number of this
project same period last in this period
issue
year Amount of profit and loss
External donation 31795.00 30000.00 31795.00
Non current asset damage and
23829.3718906.0423829.37
scrapping losses
Compensation expenses 96000.00
Late fees and liquidated
212363.60302110.62212363.60
damages
other 83547.43
total 267987.97 530564.09 267987.97
14. Income tax expenses
(1) Details
Number of this Number of the same
project
issue period last year
155ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Number of this Number of the same
project
issue period last year
Current income tax expense -4272520.91 -23506729.22
Deferred Income Tax Expense 894975.30 40518842.29
total -3377545.61 17012113.07
(2) Adjustment process of accounting profit and income tax expenses
Number of this Number of the same
project
issue period last year
Total profit -380973503.91 -430652044.53
Income tax expense calculated based on the
applicable tax rate of the parent company -95243375.98 -107663011.13
The impact of different tax rates on subsidiaries 465029.57 472597.65
The impact of adjusting income tax for previous
periods -6533032.37 2575454.03
The impact of non taxable income -4809834.15 -4485954.26
The impact of non deductible costs expenses and
651725.02
losses 251199.31
The impact of using previously unrecognized
-1349670.39-155580.87
deferred tax assets on deductible losses
The impact of deductible temporary differences or
deductible losses on unrecognized deferred tax assets 103842138.39 125616882.63
in this period
Income tax expenses -3377545.61 17012113.07
15. Other comprehensive income net of income tax
Please refer to section V (I) 32 of notes to the financial statements for details.(III) Notes to items of the consolidated cash flow statement
1. Cash receipts or payments related to significant investing activities
(1) Cash receipts from investment income
Number of this Number of the same
project
issue period last year
Other equity instrument investment dividend income 777600.00 537600.00
Investment income of trading financial assets during
161491.79
the holding period
Subtotals 777600.00 699091.79
(2) Net cash received from disposal of fixed assets intangible assets and other long-term assets
156ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Number of this Number of the same
project
issue period last year
Disposal of long-term assets 519930.21 29475.62
Subtotals 519930.21 29475.62
(3) Net cash received from disposal of subsidiaries and other operating units
Number of this Number of the same
project
issue period last year
Disposal of cash or cash equivalents received by
subsidiaries in the current period
Among them: Shenzhen Property Management Co.Ltd
Less: Cash and cash equivalents held by the company
on the day of loss of control
Among them: Shenzhen Property Management
Co. Ltd
Add: Disposal of cash or cash equivalents received by
subsidiaries in the current period from previous 568863.59 1644822.69
periods
Among them: Shenzhen Property Management
568863.591644822.69
Co. Ltd
Net cash received from disposal of subsidiaries 568863.59 1644822.69
(4) Cash paid for the purchase and construction of fixed assets intangible assets and other
long-term assets
Number of this Number of the same
project
issue period last year
Purchase fixed assets 739401.36 1475412.00
Long term deferred expenses 808132.01
Subtotals 1547533.37 1475412.00
2. Othercashreceipts or payments related to operating activities investing activities and financing
activities
(1) Other cash receipts related to operating activities
Number of this Number of the same
project
issue period last year
interest income 7559725.59 4804313.09
Accounts receivable and other expenses 8330076.43 51500509.58
total 15889802.02 56304822.67
(2) Pay other cash related to operating activities
Number of this Number of the same
project
issue period last year
157ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Number of this Number of the same
project
issue period last year
Financial expenses - handling fees 374804.61 156436.95
Cash payment for operating expenses 28607966.11 27059079.63
Accounts receivable and other expenses 22960703.60 50615881.30
total 51943474.32 77831397.88
(3) Received cash related to other investment activities
Number of this Number of the same
project
issue period last year
Fund wealth management products 136800000.00
total 136800000.00
(4) Pay other cash related to investment activities
Number of this Number of the same
project
issue period last year
Fund wealth management products 90000000.00 600000000.00
total 90000000.00 600000000.00
3. Supplementary information to the cash flow statement
additional information Number of this issue Number of the same period last year
(1) Adjusting net profit to operating cash flow:
Net profit -377595958.30 -447664157.60
Add: Asset impairment provision 375188159.83 392577463.42
Provision for credit impairment 8953080.52 -579514.02
Depreciation of fixed assets depreciation of
right of use assets depletion of oil and gas
28234946.7128554969.65
assets depreciation of productive biological
assets
Amortization of intangible assets
Amortization of long-term deferred
686525.85745676.41
expenses
Losses on disposal of fixed assets
intangible assets and other long-term 1000.00
-195840.20
assets (income indicated by a "-" sign)
Fixed asset scrapping loss (income indicated
17636.44
by "-") 23829.37
Fair value change loss (income indicated by
-7824348.71
"-")-18461736.59
158ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
additional information Number of this issue Number of the same period last year
Financial expenses (income is indicated by a
1258720.92
"-" sign) 2586822.94
Investment loss (income indicated by a "-"
-10546418.38
sign) -1346463.59
Decrease in deferred tax assets (increase
2741314.3240723917.72
indicated by "-")
Increase in deferred income tax liabilities
-205075.43
(decrease indicated by "-") -1846339.02
Decrease in inventory (increase indicated by
-49837814.46
a "-" sign) -96487621.86
Decrease in operating receivables (increase
-50483605.92-104577562.13
indicated by "-")
Increase in operating payables (decrease
598936.151202392754.36
indicated by "-")
other
Net cash flows from operating activities -127403949.79 1045037248.19
(2) Major investment and financing activities that do not
involve cash inflows and outflows:
Conversion of debt into capital
Convertible corporate bonds due within one year
Fixed assets under financing lease
(3) Net changes in cash and cash equivalents:
Closing balance of cash 520910254.44 859146413.35
Subtract: Opening balance of cash 859146413.35 190365069.48
Add: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents -338236158.91 668781343.87
4. Composition of cash and cash equivalents
(1) Details
project Closing balance Initial number
1) Cash 520910254.44 859146413.35
Among them: cash on hand 38975.98 18414.04
Bank deposits that can be used for payment at any time 518481597.91 829127999.31
159ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
project Closing balance Initial number
Other monetary funds available for payment at any
2389680.5530000000.00
time
Central bank funds available for payment
Deposit interbank funds
Interbank lending of funds
2) Cash equivalents
Among them: Bond investments due within three months
3) Closing balance of cash and cash equivalents 520910254.44 859146413.35
Among them: restricted cash and
Cash equivalents
(2) Cash and cash equivalents held by the company with restricted usage scope
Reasons for limited scope of
project Closing balance Initial number use reasons for being used as
cash and cash equivalents
Monetary funds 8332470.92 11872855.48 Regulated account
Subtotals 8332470.92 11872855.48
5. Changes in liabilities related to fundraising activities
Increase in this period Decrease in this period
project Initial number Non cash Non cash Closing balance
Cash changes Cash changes
changes changes
Short-term
3550000.001563000.003550000.001563000.00
borrowings
Long term
loans
(including
long-term 213433144.83 291378.42 117562497.60 96162025.65
loans due
within one
year)
Lease
liabilities
(including
lease 55054.12 55054.12
liabilities
due within
one year)
Subtotals 2 17038198.95 1563000.00 291378.42 117617551.72 3550000.00 97725025.65
160ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
(Ⅳ) Others
1. Monetary items in foreign currencies
Closing foreign Conversion Balance converted into RMB at
project
currency balance exchange rate the end of the period
Monetary funds 4660706.04
Among them: US
7384.877.188453085.40
dollars
Hong Kong
4975617.300.926044607620.64
currency
accounts receivable 293885.80
Among them: US
40883.347.1884293885.80
dollars
Other receivables 10661054.05
Among them: Hong
11512520.030.9260410661054.05
Kong dollars
Other payables 22489682.48
Among them: US
722044.707.18845190346.12
dollars
Hong Kong
18680981.770.9260417299336.36
currency
2. Leases
(1) The Company as lessee
1) Please refer to section V (I) 14 of notes to the financial statements for details on right-of-use
assets.
2) Please refer to section III (XXX) of notes to the financial statements for details on the
Company’s accounting policies on short-term leases and leases for which the underlying asset is of
low value. The amounts of short-term leases and low-value asset leases included into profit or loss
are as follows:
Number of this Number of the same
project
issue period last year
Short term rental expenses 56045.24 1001337.95
total 56045.24 1001337.95
3) Current profit and loss and cash flow related to leasing
Number of this Number of the same
project
issue period last year
Interest expenses on lease liabilities 6548.09
161ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Total cash outflow related to leasing 56045.24 1142112.85
4) Please refer to section Ⅷ (II) of notes to the financial statements for details on maturity
analysis of lease liabilities and related liquidity risk management.
(2) The Company as lessor
1) Operating lease
a. Lease income
Number of this Number of the same
project
issue period last year
Rental Income 69153461.54 60531148.28
Among them: Variable lease payment related income
not included in the measurement of lease receipts
b. Assets leased out under operating leases
Last year's year-end
project Closing balance
figures
Investment real estate 515925116.54 541542136.17
Subtotals 515925116.54 541542136.17
c. Undiscounted lease payments to be received arising from non-cancellable leases based on the
lease contract signed with lessee
Last year's year-end
residual maturity Closing balance
figures
Within 1 year 52670249.55 56542470.24
1-2 years 36475042.36 52190140.08
2-3 years 22511849.37 33173087.70
3-4 years 12694568.09 18585822.03
4-5 years 10772038.12 10612435.91
5 years later 8015870.43 17600507.53
total 143139617.93 188704463.49
VI. Interest in other entities
(I) Composition of the consolidation scope
1. The Company has brought 13 subsidiaries including Shenzhen SPG Longgang Development
Co. Ltd. and Great Wall Estate Company Inc. into the consolidation scope.
2. Basic information of significant subsidiaries
Unit: 10000 yuan
162ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Main Shareholding ratio
business (%)
registered Business Acquisition
Subsidiary name location and
capital Nature method
registered direct indirect
address
Shenzhen
Shenfang Group
Longgang 3000.00 Shenzhen real estate 95.00 5.00 establish
Development Co.Ltd
Great Wall Real
Estate Co. Ltd. 500000
America real estate 70.00 establish
in the United US dollars
States
Shenzhen Haiyan Hotel
3000.00 Shenzhen 68.10 31.90 establish
Hotel Co. Ltd Services
Shenzhen
Zhentong
1000.00 Shenzhen construction 73.00 27.00 establish
Engineering Co.Ltd
Shenzhen
Huazhan
Construction 800.00 Shenzhen construction 75.00 25.00 establish
Supervision Co.Ltd
Shenzhen
Lianhua
1000.00 Shenzhen construction 95.00 5.00 establish
Enterprise Co.Ltd
Investment
Xinfeng Real
Hong Kong and 100.00 establish
Estate Co. Ltd
management
500.00
(Ten
Xinfeng Investment
Thousand
Enterprise Co. Hong Kong and 100.00 establish
New
Ltd management
Taiwan
Dollars)
Shenzhen
Shenfang import and
500.00 Shenzhen 95.00 5.00 establish
Bonded Trade export trade
Co. Ltd
Shenzhen
1000.00 Shenzhen invest 90.00 10.00 establish
Shenfang
163ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Main Shareholding ratio
business (%)
registered Business Acquisition
Subsidiary name location and
capital Nature method
registered direct indirect
address
Investment Co.Ltd
Beijing Xinfeng
Real Estate
10 million
Development and Beijing real estate 75.00 25.00 establish
US dollars
Operation Co.Ltd
Guangdong Merger of
Jianbang Group enterprises
(Huiyang) 280.00 Huizhou real estate 51.00 not under
Industrial Co. the same
Ltd control
Shenzhen
Shenfang
Chuanqi Real
3000.00 Shenzhen real estate 100.00 establish
Estate
Development
Co. Ltd
(2) Other instructions
There are a total of three subsidiaries of our company that have been suspended for a long time and
whose business registration has been revoked but not cancelled namely Guangzhou Huangpu
Xincun Real Estate Development Co. Ltd. Xinfeng Real Estate Development and Construction
(Wuhan) Co. Ltd. and Beijing Xinfeng Real Estate Development and Operation Co. Ltd. which
are included in the scope of consolidation. They are reported on a non-going concern basis and the
full provision for impairment has been made for the debts of these three subsidiaries to companies
outside the scope of consolidation of our group.(Ⅱ) Significant not wholly-owned subsidiaries
1. Details
To minority
Minority
This period shareholders in Minority
sharehold
belongs to less this period shareholders at the
Subsidiary name ers
Profit and loss of Dividends end of the period
Sharehold
shareholders declared for Equity balance
ing ratio
distribution
Great Wall Real
Estate Co. Ltd. in 30.00% -105416.77 -23329443.53
the United States
164ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
To minority
Minority
This period shareholders in Minority
sharehold
belongs to less this period shareholders at the
Subsidiary name ers
Profit and loss of Dividends end of the period
Sharehold
shareholders declared for Equity balance
ing ratio
distribution
Xinfeng Investment
45.00%-29232.58-116557347.64
Co. Ltd
Baiwei Real Estate
20.00%-4034750.95
Co. Ltd
Guangdong Jianbang
Group (Huiyang) 49.00% -200750361.31 27191968.77
Industrial Co. Ltd
2. Main financial information of significant not wholly-owned subsidiaries
(1) Assets and liabilities
Closing balance
subsidiary
Non-current
name current assets illiquid assets Total Assets current liabilities Total liabilities
liability
Great Wall
Real Estate
Co. Ltd. in 334066.53 19862585.63 20196652.16 113755645.58 113755645.58
the United
States
Xinfeng
Investment 193038.35 36016.90 229055.25 259168553.63 259168553.63
Co. Ltd
Baiwei Real
Estate Co. 1084.11 1084.11 33634035.70 33634035.70
Ltd
Guangdong
Jianbang
Group
1546413206.246596481.141553009687.381496960467.211496960467.21
(Huiyang)
Industrial Co.Ltd
(Continued from the table above)
Initial number
subsidiary
Non-current
name current assets illiquid assets Total Assets current liabilities Total liabilities
liability
Great Wall
Real Estate 395377.20 19569160.13 19964537.33 111791851.06 111791851.06
Co. Ltd. in
165ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Initial number
subsidiary
Non-current
name current assets illiquid assets Total Assets current liabilities Total liabilities
liability
the United
States
Xinfeng
Investment 69786.71 36016.90 105803.61 258283372.85 258283372.85
Co. Ltd
Baiwei
Real Estate 1061.18 1061.18 32920988.91 32920988.91
Co. Ltd
Guangdong
Jianbang
Group
2016643388.117070465.172016643388.11557970018.201557970018.20
(Huiyang)
Industrial
Co. Ltd
(2) Profit and loss and cash flow situation
Number of this issue Number of the same period last year
subsidiary Total
operating Total comprehensive Cash flow from operating Cash flow from
name Net profit Net profit comprehensive
revenue income operating activities revenue operating activities
income
Great
Wall Real
Estate
Co. Ltd. 695682.90 -351389.23 -1731679.70 -124152.78 690265.11 -351082.24 -1738429.72 10516.97
in the
United
States
Xinfeng
Investmen -64961.29 11.30 11.30
t Co. Ltd
Baiwei
Real
-713023.8615.1615.16
Estate
Co. Ltd
Guangdon
g Jianbang
Group
-409694614.91-409694614.91-5663416.92-401467956.63-401467956.63-26899080.84
(Huiyang)
Industrial
Co. Ltd
166ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
(Ⅳ) Interest in joint ventures or associates
1. Aggregated financial information of insignificant joint ventures and associates
Final number/current Beginning balance/same
project
number period last year balance
joint venture
Total book value of investments
The total of the following items calculated
according to the shareholding ratio
Net profit
Other comprehensive income
Total comprehensive income
joint venture
Total book value of investments -93927.67
The total of the following items calculated
according to the shareholding ratio
Net profit -93927.67
Other comprehensive income -93927.67
Total comprehensive income
2. Excess losses incurred by joint ventures or associates
Unconfirmed losses in this
Accumulated in the Accumulated at the
Joint venture or period
early stage end of this period
Name of joint venture (or net profit shared in this
Confirmed loss Unconfirmed losses
period)
Shenzhen Xinfeng
Real Estate 2217955.89 2217955.89
Consulting Co. Ltd
VII. Government grants
(Ⅰ) Government grants increased in the current period
Newly added subsidy amount for this
project
period
grants related to income 753298.54
Among them: included in other income 753298.54
total 753298.54
(II) Government grants included into profit or loss
167ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Number of this Number of the same
project
issue period last year
Government subsidies included in other income 753298.54 440049.96
total 753298.54 440049.96
VIII. Risks related to 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:
1) 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;
2) 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
168ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
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:
1) significant financial difficulty of the debtor;
2) a breach of binding clause of contract;
3) it is very likely that the debtor will enter bankruptcy or other financial reorganization;
4) 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. Please refer to section V (I) 3 4 6 and 8 of notes to the financial statements for details on the
reconciliation table of opening balance and closing balance of provision for losses of financial
instrument.
4. 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 customersthe Company
manages credit risk aggregated by customers. As of December 31 2024 the Company has certain
concentration of credit risk and 40.97% (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.
169ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
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.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
project Unpredited contract
book value Within 1 year 1-3 years More than 3 years
amount
Short-term
1563000.001599446.391599446.39
borrowings
accounts payable 464488982.30 464488982.30 464488982.30
Other payables 561016653.17 561016653.17 561016653.17
Non current
liabilities due 33888347.83 36522809.86 36522809.86
within one year
Other current
118304068.47118304068.47118304068.47
liabilities
long-term loan 62273677.82 67283938.91 - 4788462.25 62495476.66
Subtotals 1241534729.59 1249215899.10 1181931960.19 4788462.25 62495476.66
(Continued from the table above)
Initial number
project Unpredited contract
book value Within 1 year 1-3 years More than 3 years
amount
Short-term
3550000.003683125.003683125.00
borrowings
accounts payable 443259768.78 443259768.78 443259768.78
Other payables 554469229.59 554469229.59 554469229.59
170ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Initial number
project Unpredited contract
book value Within 1 year 1-3 years More than 3 years
amount
Non current
liabilities due 34056347.93 41741101.03 41741101.03
within one year
Other current
20790361.5820790361.5820790361.58
liabilities
long-term loan 179431851.02 187773026.94 122834289.80 64938737.14
Subtotals 1235557558.90 1251716612.92 1063943585.98 122834289.80 64938737.14
(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.As of December 31 2024 balance of borrowings with interest accrued at floating interest rate
totaled 62273677.82 yuan (December 31 2023: RMB 62398851.02). 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
171ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
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.Please refer to section V (IV) 1 of notes to the financial statements for details on foreign currency
financial assets and liabilities at the end of the period.IX. Fair value disclosure
(I) Details of fair value of assets and liabilities at fair value at the balance sheet date
Fair value at the end of the period
Level 2 Third level
Level 1 Fairness
project Fairness fairness
value total
value value
measurement
measurement measurement
Continuous fair value measurement
1. Trading financial assets and
987801938.51987801938.51
other non current financial assets
(1) Classified as financial assets
measured at fair value with
changes recognized in current
profit or loss
Fund Wealth Management 987801938.51 987801938.51
(2) Designated as financial assets
measured at fair value with
changes recognized in current
profit or loss
Debt instrument investment
2. Other equity instrument
14697341.1814697341.18
investments
Total assets continuously measured
1002499279.691002499279.69
at fair value
X. Related party relationships and transactions
(I) Related party relationships
1. Parent company
(1) Details
172ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Proportion
Parent of voting
Registered company's rights of
Parent company Place of Business capital shareholding the parent
name Registration Nature (RMB ratio in our company
10000) company in the
(%) company
(%)
Investment
Shenzhen Investment Shenzhen real estate
3235900.0055.7855.78
Holding Co. Ltd Guangdong development
guarantee
(2) The Company’s ultimate controlling party is the State-owned Assets Supervision and
Management Commission of the of Shenzhen Municipal People’s Government.
2. Please refer to section VI of notes to the financial statements for details on the Company’s
subsidiaries.
3. Joint ventures and associates of the Company
(1) Joint ventures and associates of the Company
Please refer to section VI of notes to the financial statements for details on the Company’s
significant joint ventures and associates.
4. Other related parties of the Company
Other related parties' relationship with our
Other related party names
company
The controlling subsidiary of the parent
Shenzhen Jian'an (Group) Co. Ltd
company
Shenzhen Oriental New World Department
joint stock company
Store Co. Ltd
Shenzhen Shenxi Architectural Decoration Revoked but not cancelled controlling
Company subsidiaries not included in the merger
Shenzhen Zhentong New Electromechanical Long-term suspended holding subsidiaries not
Industrial Development Co. Ltd included in the merger
Revoked but not cancelled controlling
Shenzhen Nanyang Hotel Co. Ltd
subsidiaries not included in the merger
Shenzhen Real Estate Electromechanical Revoked but not cancelled controlling
Management Company subsidiaries not included in the merger
Shenzhen Longgang Henggang Huagang Revoked but not cancelled controlling
Industrial Co. Ltd subsidiaries not included in the merger
Guangzhou BoPi Enterprise Management
Subsidiary shareholders
Consulting Co. Ltd
Shenzhen Property Management Co. Ltd The controlling subsidiary of the parent
173ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Other related parties' relationship with our
Other related party names
company
company
The controlling subsidiary of the parent
Guoren Property Insurance Co. Ltd
company
Shenzhen Water Planning and Design Institute The controlling subsidiary of the parent
Co. Ltd company
Shenzhen General Institute of Architectural The controlling subsidiary of the parent
Design and Research company
The controlling subsidiary of the parent
Shenzhen Shenfang Property Cleaning Co. Ltd
company
Shenzhen Property Management Co. Ltd. The controlling subsidiary of the parent
Shantou Branch company
Shenzhen Guomao Property Management Co. The controlling subsidiary of the parent
Ltd company
Shenzhen Xinfeng Real Estate Consulting Co.joint stock company
Ltd
Guangdong Huizhou Luofushan Mineral Water
joint stock company
Beverage Co. Ltd
Shenzhen Runhua Automobile Trading
joint stock company
Company
Great Wall Canada (Vancouver) Limited joint stock company
Berkton Australia Limited joint stock company
Baili Co. Ltd joint stock company
Shenzhen Shenfang Department Store Co. Ltd joint stock company
Shenzhen Ronghua Electromechanical
joint stock company
Engineering Co. Ltd
Xi'an Xinfeng Property Trading Co. Ltd joint stock company
Fengkai County Lianfeng Cement
joint stock company
Manufacturing Co. Ltd
Beijing Shenfang Property Management Co.joint stock company
Ltd
(II) Related party transactions
1. Purchase and sale of goods rendering and receiving of services
(1) Details
1) Purchase of goods and receiving of services
Related party Number of the same
Related parties Number of this issue
transaction content period last year
174ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Related party Number of the same
Related parties Number of this issue
transaction content period last year
Shenzhen Water
Planning and Design Testing services 27169.81 678902.77
Institute Co. Ltd
Shenzhen General
Institute of
Design Services 622641.51
Architectural Design
and Research
Guoren Property
Insurance Services 322255.28 80263.00
Insurance Co. Ltd
Shenzhen Property
Property Services 7472214.59 6482286.26
Management Co. Ltd
Shenzhen Shenfang
Property Cleaning Cleaning services 497453.20
Co. Ltd
Shenzhen Property
Management Co. Ltd. Property Services 2480734.94 2789916.70
Shantou Branch
Subtotals 10799827.82 10654010.24
2) Related transactions involving the sale of goods and provision of services
Related party Number of the same
Related parties Number of this issue
transaction content period last year
Guoren Property
Rental services 773325.68 843039.96
Insurance Co. Ltd
Shenzhen Property
Rental services 5476586.12 2663510.39
Management Co. Ltd
Shenzhen Shenfang
Property Cleaning Rental services 39999.96 39999.97
Co. Ltd
Subtotals 6289911.76 3546550.32
2. Related party leases
(1) Details
The Company as the lessor
Confirmed in this Confirmed in the same
Tenant name Types of leased assets period period last year
Rental Income Rental Income
Shenzhen Property
Houses and buildings 5476586.12 2663510.39
Management Co. Ltd
Shenzhen Shenfang
Houses and buildings 39999.96 39999.97
Property Cleaning
175ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Confirmed in this Confirmed in the same
Tenant name Types of leased assets period period last year
Rental Income Rental Income
Co. Ltd
Guoren Property
Houses and buildings 773325.68 843039.96
Insurance Co. Ltd
Subtotals 6289911.76 3546550.32
3. Key management’s emoluments
Unit: 10000 yuan
Number of this Number of the same
project
issue period last year
Compensation for key management personnel 857.26 967.69
4. Other related party transactions
In order to advocate core employees to share the operating results of market-oriented projects and
assumption of operational risks stimulate their internal motivation to enhance efficiency and
increase benefits improve asset management efficiency and achieve the preservation and
appreciation of state-owned assets the Company has formulated the "Management Measures for
Employee’s Co-investment in the SPG Linxi County Project". Pursuant to the
aforementioneddocument the co-investment matter will constitute a joint investment of related
party transactions with certain directors supervisors and senior executives of the Company. As of
December 31 2024 the Company’s directors supervisors and senior executives have jointly
invested 8.95 million yuan in the SPG Linxin Community Project.(III) Balances due to or from related parties
1. Balances due from related parties
project Closing balance Initial number
Related parties
name book balance bad debt reserves book balance bad debt reserves
accounts
receivable
Shenzhen
Property
1025942.86
Management Co.Ltd
Shenzhen Xinfeng
Real Estate
1237010.581237010.581215543.751215543.75
Consulting Co.Ltd
Subtotal
2262953.441237010.581215543.751215543.75
s
Other
receivables
176ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
project Closing balance Initial number
Related parties
name book balance bad debt reserves book balance bad debt reserves
Shenzhen
Property
5500.00
Management Co.Ltd
Guangdong
Huizhou
Luofushan 10465168.81 10465168.81 10465168.81 10465168.81
Mineral Water
Beverage Co. Ltd
Shenzhen Runhua
Automobile 3072764.42 3072764.42 3072764.42 3072764.42
Trading Company
Great Wall
Canada
89035748.0789035748.0789035748.0789035748.07
(Vancouver)
Limited
Berkton Australia
12559290.5812559290.5812559290.5812559290.58
Limited
Baili Co. Ltd 20251959.02 20251959.02 19393335.84 19393335.84
Shenzhen
Shenfang
237648.82237648.82237648.82237648.82
Department Store
Co. Ltd
Shenzhen
Ronghua
Electromechanical 475223.46 475223.46 475223.46 475223.46
Engineering Co.Ltd
Xi'an Xinfeng
Property Trading 8419205.19 8419205.19 8419205.19 8419205.19
Co. Ltd
Shenzhen Shenxi
Architectural
7660529.377660529.377660529.377660529.37
Decoration
Company
Shenzhen
Nanyang Hotel 3168721.00 3168721.00 3168721.00 3168721.00
Co. Ltd
Beijing Shenfang
Property 6905673.69 6533817.09 6905673.69 6533817.09
Management Co.
177ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
project Closing balance Initial number
Related parties
name book balance bad debt reserves book balance bad debt reserves
Ltd
Subtotal
162257432.43161880075.83161393309.25161021452.65
s
2. Balances due to related parties
project name Related parties Closing balance Initial number
Other payables -
accrued interest
Shenzhen Investment
16535277.9416535277.94
Holding Co. Ltd
Subtotals 16535277.94 16535277.94
accounts payable
Shenzhen Property
12658092.8317053636.61
Management Co. Ltd
Subtotals 12658092.83 17053636.61
Other payables
Shenzhen Property
244304.26358178.26
Management Co. Ltd
Guoren Property
74332.00
Insurance Co. Ltd
Shenzhen Oriental New
World Department Store 902974.64 902974.64
Co. Ltd
Fengkai County Lianfeng
Cement Manufacturing Co. 1867348.00 1867348.00
Ltd
Shenzhen Real Estate
Electromechanical 14981420.99 14981420.99
Management Company
Shenzhen Zhentong New
Electromechanical
8310832.508310832.50
Industrial Development
Co. Ltd
Shenzhen Shenfang
639360.38639360.38
Department Store Co. Ltd
Shenzhen Longgang
Henggang Huagang 165481.09 165481.09
Industrial Co. Ltd
Guangzhou BoPi Enterprise 206903717.13 206903717.13
178ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
project name Related parties Closing balance Initial number
Management Consulting
Co. Ltd
Subtotals 234089770.99 234129312.99
XI. Commitments and contingencies
(I) Significant commitments
As of December 31 2024 there are no important commitments that the company needs to
disclose.(II) Contingencies
1. Contingent liabilities incurred by pending lawsuit/arbitration and the financial effect
cause of Acceptin Subject
plaintiff defendant notes
action g court amount
Xi'an Municipal
Shaanxi Progress of the
Commission of
Xi'an Xinfeng Investment Provincial 21.54 million case: Under
Commerce and
Property Trading compensation Higher yuan and its Execution
Trade Xi'an
Co. Ltd dispute Peoples interest Case details:
Commercial
Court [Note 1]
Tourism Co. Ltd
Huizhou Mingxiang
Economic
Information Principal
Dispute over Progress of the
Consulting Co. Ltd. 177.1514
Guangdong the right to case: Under
Huizhou Huiyang million yuan
Jianbang Group request Huiyang Execution
Hongfa Industry and interest
(Huiyang) Industrial payment of District Case details:
Trade Co. Ltd. 2.8482 million
Co. Ltd bills in Court [Note 2]
Huizhou yuan
litigation
Jinlongsheng
Industrial Co. Ltd
Guangzhou Bopi
Enterprise
Management
Disputes over
Consulting Co. Intermediate
joint venture
Ltd. Evergrande People's Case Progress:
Shenzhen Special and
Real Estate Group Court of In the Second
Economic Zone Real cooperative 743.575 million
Pearl River Delta Huizhou Instance
Estate (Group) Co. real estate yuan
Real Estate City Case details:
Ltd development
Development Co. Guangdong [Note 3]
contracts
Ltd. Shenzhen Province
Qijin Investment
Co. Ltd. and the
third party is
179ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Guangdong
Jianbang Group
(Huiyang) Industrial
Co. Ltd
Shenzhen Case progress:
Shenzhen Special Guangdong Principal and
Luohu ongoing
Economic Zone Real Jianbang Group Loan contract interest of
District execution
Estate (Group) Co. (Huiyang) Industrial dispute 395.6885
People's Case details:
Ltd Co. Ltd million yuan
Court [Note 4]
Guangdong
Jianbang
Group (Huiyang)
Industrial
Co.Ltd. Guangzhou Bopi
Enterprise
Huizhou Case progress:
Shenzhen Special Principal and
Management Huiyang ongoing
Economic Zone Real Loan contract interest of
Consulting District execution
Estate (Group) Co. dispute RMB 419.5229
Co. Ltd. People's Case details:
Ltd million
Evergrande Court [Note 5]
Real Estate Group
Pearl River Delta
Real Estate
Development
Co. Ltd.Shenzhen
Qijin
Investment
Co. Ltd
Note 1: Xi'an Xinfeng Property Trading Co. Ltd. (hereinafter referred to as Xi'an Xinfeng
Company) is a Sino foreign joint venture established by Xinfeng Enterprise Co. Ltd. a
wholly-owned subsidiary of our company in Xi'an. Xinfeng Enterprise Co. Ltd. holds 67% of the
shares in cash Xi'an Commercial and Trade Commission (hereinafter referred to as Xi'an
Commerce and Trade Commission) directly affiliated enterprise Xi'an Commercial and Trade
Building holds 16% of the shares in land use rights and Hong Kong Dadiwang Industrial
Investment Company holds 17% of the shares; Our main business is real estate development
and the development project is Xi'an Commercial Building. The project started on November 28
1995 but due to serious differences in project management policies between the two parties the
project was forced to stop in 1996. In 1997 the Xi'an Municipal Government forcibly withdrew
180ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
the investment project of Xi'an Xinfeng Company and transferred it to Xi'an Commerce and
Tourism Co. Ltd. (hereinafter referred to as the Commerce and Tourism Company) a subsidiary
of the Xi'an Municipal Commission of Commerce and Trade. However both parties filed a
lawsuit regarding the investment compensation. On December 19 2001 the Shaanxi Provincial
High People's Court ruled in its judgment No. 25 of 2000 that: 1. The commercial tourism
company shall pay a compensation of 36.62 million yuan and its interest to Xi'an Xinfeng
Company within one month after the judgment takes effect. In case of overdue performance the
company shall pay double the debt interest during the period of delayed performance; 2. The
Xi'an Municipal Commission of Commerce and Trade shall bear joint and several liabilities for
the interest on the above-mentioned compensation. The assets of the commercial tourism
company in this case have been auctioned off and a total of 15.201 million yuan has been
recovered through execution. Our company has submitted multiple applications to the Shaanxi
Provincial High People's Court for the resumption of enforcement based on the acquisition of
property clues. As of December 31 2024 the case is in the enforcement stage. As of December
31 2024 the book balance of our company's long-term equity investment in Xi'an Xinfeng
Company is 32840729.61 yuan for which full provision for impairment has been made. The book
debt balance is 8419205.19 yuan for which full provision for impairment has been made.Note 2: Guangdong Jianbang Group (Huiyang) Industrial Co. Ltd. (hereinafter referred to as
"Jianbang Company") is a subsidiary of our company holding 51% of the shares. Due to Jianbang
Company's inability to pay commercial acceptance bills due in January 2022 with a total amount
of 177.1514 million yuan the plaintiff company has filed a lawsuit with the Huiyang District
Court to claim payment rights for the bills. On March 14 2023 the court ruled that Jianbang
Company must pay commercial bills and overdue interest to three companies within 15 days.(Including bearing litigation costs and preservation fees of approximately 1.03 million yuan). As
of December 31 2024 the plaintiff has applied for enforcement to the Huizhou Intermediate
People's Court.As of December 31 2024 a total of 153 properties in buildings 2 and 4 of the first phase of the
Shenfang Linxin Garden project estimated at a recorded price of 220 million yuan have been
seized.Note 3: On April 30 2021 our company signed a "Cooperation Development Agreement" and a
"Entrustment Management Agreement" with Guangzhou Bopi Hengda Pearl River Delta and
Jianbang Company. Guangzhou Bopi promised that Jianbang Company would achieve a
cumulative net profit of not less than 1.25 billion yuan from 2021 to 2025. If Guangzhou Bopi
fails to fulfill its profit commitment it will make up for the difference. On June 30 2021 due to
the acquisition of 51% equity of Guangzhou BoPi by Shenzhen Qijin our company Guangzhou
BoPi Hengda Pearl River Delta and Shenzhen Qijin jointly signed Supplementary Agreement 1
to the "Cooperation Development Agreement" which stipulates that Shenzhen Qijin shall assume
181ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
joint and several liabilities with Hengda Pearl River Delta for Guangzhou BoPi's profit
commitment and shortfall compensation to our company as stipulated in the "Cooperation
Development Agreement". Due to the fundamental breach of contract by Guangzhou Bopi and
Hengda Pearl River Delta and the actual loss of performance ability the purpose and expected
benefits of our company's contract cannot be achieved. Our company has filed a lawsuit. On
January 8 2025 our company received the first instance civil judgment of the case and the
judgment made by the Huizhou Intermediate People's Court of the first instance supported some
of our company's litigation claims. On January 22 2025 our company filed an appeal regarding
unsupported claims and the case is currently in the second instance.Note 4: In 2021 a third party in our company's acquisition case held 51% of the defendant's equity.At the time of the acquisition it was agreed that our company would provide interest-bearing
loans to Jianbang Company in proportion to the equity. Later Jianbang Company borrowed
twice from our company and signed a "Loan Agreement". After the agreement is signed our
company will provide loans to Jianbang Company under the agreement and fulfill the lending
obligation. Both loans have now matured but Jianbang Company has not repaid them
constituting a breach of contract. As a state-owned listed company our company has filed this
lawsuit to protect state-owned assets from losses. This case was judged in the first instance in
December 2023. In January 2024 our company received a "Civil Judgment" from the People's
Court of Luohu District Shenzhen Guangdong Province: Jianbang Company was ordered to
repay the loan principal of 344696200.26 yuan and pay interest to our company within ten days
from the effective date of the judgment; Jianbang Company shall pay liquidated damages to our
company within ten days from the effective date of the judgment. As of December 31 2024 the
case is under first-instance execution and the company has applied to seal off 310 properties
under construction by Jianbang Company.Note 5: In 2021 our company acquired 51% equity of Jianbang Company held by Guangzhou
Bopi and agreed to provide interest-bearing loans to Jianbang Company according to the equity
ratio during the acquisition. The last five parties signed an agreement agreeing that our
company would provide loans to Jianbang Company and Jianbang Company would provide
corresponding collateral. At the same time Guangzhou Bopi Hengda Pearl River Delta and
Shenzhen Qijin would assume joint and several guarantee responsibility for 49% of the total loan
amount interest and liquidated damages. After the agreement was signed our company
provided a loan to Jianbang Company under the agreement and fulfilled the lending obligation.However Jianbang Company was unable to repay the loan. As a state-owned holding listed
company our company filed a lawsuit to protect state-owned assets from losses. The first
instance judgment of this case was made on June 5 2024 sentencing Jianbang Company to repay
the loan principal of 379.83 million yuan and corresponding interest; The judgment is that our
company has the priority right to receive compensation for the mortgage rights of the third and
fourth phases of the Shenfang Linxin Garden project under the name of Jianbang Company;
182ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Guangzhou Bopi Enterprise Management Consulting Co. Ltd. Evergrande Real Estate Group
Pearl River Delta Real Estate Development Co. Ltd. and Shenzhen Qijin Investment Co. Ltd. are
jointly and severally liable for the 49% principal and interest of the loan owed by Jianbang
Company to our company totaling 186116700 yuan and interest. On June 24 2024 Guangzhou
Bopi filed an appeal but failed to pay the case acceptance fee on time. In October 2024 the
Huizhou Intermediate People's Court issued a "Civil Ruling" and processed the case as withdrawn.The first instance judgment became effective as of December 31 2024 and the case is still under
execution. Our company has seized 307 properties under construction of Jianbang Company.
2. Contingent liabilities incurred by providing debt guarantees for other entities and the financial
effect
As of December 31 2024 our company has provided mortgage loan guarantees totalling RMB
66441.39millionto buyers of commercial housing under real estate operating practices.
Amount of
borrowings
Guaranteed Financial institutions Maturity date of
guaranteed (in Remarks
parties granting borrowings guarantees
ten thousand
yuan)
Until the mortgage
registration of the property
Shanglin
Homebuyer China Construction Bank 43.50 certificate is completed
Community
and handed over to the
bank for safekeeping
Until the mortgage
registration of the property
Agricultural Bank of
Homebuyer 11911.65 certificate is completed Cuilin Community
China
and handed over to the
bank for safekeeping
Until the mortgage
registration of the property
Agricultural Bank of Chuanqi Donghu
Homebuyer 1998.65 certificate is completed
China Garden
and handed over to the
bank for safekeeping
China Construction Bank
Bank of Communications Until the mortgage
Industrial and Commercial registration of the property
Homebuyer Bank of China Bank of 2407.00 certificate is completed Tianyue Bay
China China Everbright and handed over to the
Bank Postal Savings Bank bank for safekeeping
of China
Industrial and Commercial Until the mortgage
Bank of China Huaxia registration of the property
Homebuyer Bank Agricultural Bank 48581.04 certificate is completed Guangming Lane
of China Postal Savings and handed over to the
Bank of China China bank for safekeeping
183ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Amount of
borrowings
Guaranteed Financial institutions Maturity date of
guaranteed (in Remarks
parties granting borrowings guarantees
ten thousand
yuan)
Merchants Bank Bank of
China
Shenzhen
The parent
Shenfang
company provides
Chuanqi Real China Merchants Bank
1499.52 June 19th 2025 a guarantee for the
Estate and Bank of China
loan of its
Development
subsidiary.Co. Ltd.Subtotal 66441.39
XII. Events after the balance sheet date
As of the financial reporting date the company does not have any post-balance sheet events that
need to be disclosed.XIII. Other significant events
Segment information
Our company's main business is the development construction and sales of real estate products
as well as the rental and management fees charged for renting properties. The company regards
this business as a whole for implementing management and evaluating business results.Therefore the company does not need to disclose branch information. For detailed information
on the breakdown of our company's revenue please refer to Note V (II) 1 of these financial
statements.XIV. Notes to items of parent company financial statements
(I) Notes to items of parent company balance sheet
1. Accounts receivable
(1) Age analysis
Aging of accounts Closing balance Initial number
Within 1 year 13309107.41 15636256.41
More than 5 years 4450138.62 4450138.62
Total book balance 17759246.03 20086395.03
Less: Bad debt provision 10559107.12 10335510.02
Total book value 7200138.91 9750885.01
(2) Provision for bad debts
1) Details on categories
184ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Closing balance
book balance bad debt reserves
Types
Proportio Provision ratio book value
amount of money amount of money
n (%) (%)
Individual provision
10084109.6056.7810084109.60100.00
for bad debts
Provision for bad debts
7675136.4343.22474997.526.197200138.91
by combination
total 17759246.03 100.00 10559107.12 59.46 7200138.91
(Continued from the table above)
Initial number
book balance bad debt reserves
Types
amount of Proportio Provision ratio book value
amount of money
money n (%) (%)
Individual provision
10084109.6050.2010084109.60100.00
for bad debts
Provision for bad debts
10002285.4349.80251400.422.519750885.01
by combination
total 20086395.03 100.00 10335510.02 51.46 9750885.01
2) Accounts receivable with significant single provision for bad debt reserves
Initial number Closing balance
Unit Name book bad debt book bad debt Provision Basis for
balance reserves balance reserves ratio (%) provision
Long term
unrecovered Expected
10084109.6010084109.6010084109.6010084109.60100.00
sales irretrievable
proceeds
Subtotal
10084109.6010084109.6010084109.6010084109.60100.00
s
3) Accounts receivable with combined provision for bad debts
Closing balance
project bad debt Provision ratio
book balance
reserves (%)
Combination of receivable property
7675136.43474997.526.19
sales proceeds
Combination of related parties
within the scope of accounts
receivable consolidation
Subtotals 7675136.43 474997.52 6.19
(3) Changes in bad debt provision
1) Details
185ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Current period change amount
project Initial number Withdrawal Writ Closing balance
Provision other
or reversal e off
Individual
provision for 10084109.60 10084109.60
bad debts
Provision for
bad debts by 251400.42 223597.10 474997.52
combination
total 10335510.02 223597.10 10559107.12
(4) Top 5 accounts receivable and contract asset amounts
Proportion Provision for
Closing book balance (%) of the bad debts of
total ending accounts
Unit Name balance of receivable and
Contr
accounts accounts provision for
act Subtotals
receivable receivable and impairment of
assets
contract assets contract assets
Shenzhen
Huatang Famous
Liquor City 2963112.00 2963112.00 16.68 148155.60
Investment Co.Ltd
Daxing Auto
2103579.622103579.6211.842103579.62
Parts Co. Ltd
Shenzhen
Xinfeng Real
1237010.581237010.586.971237010.58
Estate Consulting
Co. Ltd
Wang Weidong 1200000.00 1200000.00 6.76 1200000.00
Wang Guodong 933564.68 933564.68 5.26 933564.68
Subtotals 8437266.88 8437266.88 47.51 5622310.48
2. Other receivables
(1) Details
project Closing balance Initial number
dividend receivable 29222722.88 29222722.88
Other receivables 1722328667.65 1693941657.82
total 1751551390.53 1723164380.70
(2) Dividends receivable
186ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
1) Details
project Closing balance Initial number
Shenzhen Shenfang Group Longgang Development
29222722.8829222722.88
Co. Ltd
Subtotals 29222722.88 29222722.88
2) Important receivable dividends with an account age of over 1 year
Whether
Account Reasons for not impairment has
project Closing balance
Age retrieving occurred and its
judgment basis
Shenzhen Shenfang Group
Longgang Development Co. 29222722.88 Suspend payment deny
years
Ltd
Subtotals 29222722.88
(3) Other receivables
1) Classification of Payment Nature
Nature of Payment Closing balance Initial number
Combination of accounts receivable from related
2403869206.912371906725.11
parties
Combination of accounts receivable from
165460.00165460.00
government departments
Accounts receivable employee reserve fund
93900.0062454.80
combination
Accounts receivable collection and payment
1002722.3167200.00
combination
Combination of other receivables and payables 142474366.82 142185626.87
Subtotal of book balance 2547605656.04 2514387466.78
Less: Bad debt provision 825276988.39 820445808.96
Subtotal of book value 1722328667.65 1693941657.82
2) Aging situation
Aging of accounts Closing balance Initial number
Within 1 year 452103220.23 92173735.70
1-2 years 6102884.22 333456337.77
2-3 years 642158.28 456845625.71
3-4 years 456845625.71 104875297.41
4-5 years 104875297.41 70181566.47
More than 5 years 1527036470.19 1456854903.72
187ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Aging of accounts Closing balance Initial number
Subtotal of book balance 2547605656.04 2514387466.78
Less: Bad debt provision 825276988.39 820445808.96
Subtotal of book value 1722328667.65 1693941657.82
3) Provision for bad debts
a. Details on categories
Closing balance
book balance bad debt reserves
Types Provision
Proportion amount of book value
amount of money Proportion
(%) money
(%)
Individual provision for bad
825174418.5632.39825174418.56100.00
debts
Provision for bad debts by
1722431237.4867.61102569.830.011722328667.65
combination
Subtotals 2547605656.04 100.00 825276988.39 32.39 1722328667.65
(Continued from the table above)
Initial number
book balance bad debt reserves
Provisi
Types
Proporti on book value
amount of money amount of money
on (%) Proport
ion (%)
Individual provision
820414389.7932.63820414389.79100.00
for bad debts
Provision for bad
1693973076.9967.3731419.171693941657.82
debts by combination
Subtotals 2514387466.78 100.00 820445808.96 32.63 1693941657.82
b. Other receivables with provision made on a collective basis
Closing balance
Combination Name
book balance bad debt reserves Provision ratio (%)
Combination of accounts
receivable from related 1720639148.88
parties
Combination of accounts
receivable from 165460.00
government departments
Accounts receivable
1002722.3150136.125.00
collection and payment
188ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Closing balance
Combination Name
book balance bad debt reserves Provision ratio (%)
combination
Combination of other
623906.298.40
receivables and payables 52433.71
Subtotals 1722431237.48 102569.83 0.01
4) Changes in bad debt provision
first phase phase 2 Third Stage
Expected credit
Expected credit loss for the
Next 12 months loss for the entire entire duration
project Subtotals
Expected credit duration (no (credit
loss credit impairment impairment
has occurred) already
occurred)
Initial number 820445808.96 820445808.96
Initial figures in
——————
this period
--Entering the
second stage
--Entering the
third stage
--Return to the
second stage
--Return to the
first stage
Provision for this
70870.66-85748.84-14878.18
period
Withdrawal or
reversal in this
period
Verification in this
period
Other changes 31419.17 4814638.44 4846057.61
Closing balance 102289.83 825174698.56 825276988.39
Provision ratio for
bad debts at the
0.00(Note) 32.39 32.39
end of the period
(%)
Note: The calculated ratio value is too small to display showing as 0.00.
5) Top 5 Other Accounts Receivable Amounts
189ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Nature Proportion
of Closing book Account of other End of term bad
Unit Name
Payme balance Age receivables debt provision
nt balance (%)
Accoun
Guangdong ts
Jianbang Group payable
(Huiyang) to and 842113841.74 3-4 years 33.06
Industrial Co. from
Ltd subsidi
aries
Accoun
Shantou ts
Huafeng Real payable 1-2 years
Estate to and 754160642.87 5 years or 29.60
Development from more
Co. Ltd subsidi
aries
Accoun
ts
Xinfeng payable More
Enterprise Co. to and 538958558.32 than 5 21.16 538958558.32
Ltd from years
subsidi
aries
Accoun
ts
Great Wall Real
payable More
Estate Co. Ltd.to and 106555895.31 than 5 4.18 106555895.31
in the United
from years
States
subsidi
aries
Accoun
ts
payable
Hualin Co. Ltd to and 91402651.79 3-4 years 3.59
from
subsidi
aries
Subtotals 2333191590.03 91.58 645514453.63
3. Long-term equity investment
(1) Details
190ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Closing balance Initial number
project impairment impairment
book balance book value book balance book value
provision provision
Investment in
1715520833.00554754168.861160766664.141715520833.00392155084.611323365748.39
subsidiaries
Investment in
joint ventures and 11977845.58 11977845.58 11977845.58 11977845.58
associates
total 1727498678.58 566732014.44 1160766664.14 1727498678.58 404132930.19 1323365748.39
(2) Investment in subsidiaries
Initial number Changes in this period Closing balance
The invested
Book Impairment append reduce Provision for Book Impairment
entity other
value prepare invest invest impairment value prepare
Shenzhen Haiyan
20605047.5020605047.50
Hotel Co. Ltd
Shenzhen Shenfang
9000000.009000000.00
Investment Co. Ltd
Xinfeng Enterprise
556500.00556500.00
Co. Ltd
Xinfeng Real Estate
22717697.7322717697.73
Co. Ltd
Shenzhen Zhentong
Engineering Co. 11332321.45 11332321.45
Ltd
Great Wall Real
Estate Co. Ltd. in 1435802.00 1435802.00
the United States
Shenzhen Shenfang
Bonded Trade Co. 4750000.00 4750000.00
Ltd
Shenzhen Huazhan
Construction 6000000.00 6000000.00
Supervision Co. Ltd
Shenzhen Lianhua
13458217.0513458217.05
Enterprise Co. Ltd
Shenzhen Shenfang
Group Longgang
30850000.0030850000.00
Development Co.Ltd
Beijing Xinfeng
Real Estate
64183888.9064183888.90
Development and
Operation Co. Ltd
191ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Initial number Changes in this period Closing balance
The invested
Book Impairment append reduce Provision for Book Impairment
entity other
value prepare invest invest impairment value prepare
Shantou Huafeng
Real Estate
16467021.0216467021.02
Development Co.Ltd
Baili Co. Ltd 201100.00 201100.00
Berkton
Corporation 906630.00 906630.00
Australia
Shenzhen Shenfang
Department Store 9500000.00 9500000.00
Co. Ltd
Shantou Xinfeng
58547652.2558547652.25
Building
Guangdong
Jianbang Group
191184186.54258815813.46162599084.2528585102.29421414897.71
(Huiyang) Industrial
Co. Ltd
Shenzhen Shenfang
Chuanqi Real Estate
995000000.00995000000.00
Development Co.Ltd
Hualin Co. Ltd 8955.10 8955.10
Subtotals 1323365748.39 392155084.61 162599084.25 1160766664.14 554754168.86
(3) Investment in joint ventures and associates
Initial number Changes in this period
Investmen
t gains and Other
make an
The invested book Reduce losses comprehensiv
impairment additional
entity valu investmen recognize e
provision investmen
e t d under Income
t
the equity adjustment
method
joint venture
Fengkai Xinghua
9455465.38
Hotel
Subtotals 9455465.38
joint venture
192ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Initial number Changes in this period
Investmen
t gains and Other
make an
The invested book Reduce losses comprehensiv
impairment additional
entity valu investmen recognize e
provision investmen
e t d under Income
t
the equity adjustment
method
Shenzhen
Ronghua
Electromechanica 1076954.64
l Engineering
Co. Ltd
Shenzhen
Runhua
Automobile 1445425.56
Trading
Company
Subtotals 2522380.20
11977845.5
total
8
(Continued from the table above)
Changes in this period Closing balance
Declare the
The invested Other distribution Provision
book impairment
entity equity of cash for other
value provision
changes dividends or impairment
profits
joint venture
Fengkai Xinghua
9455465.38
Hotel
Subtotals 9455465.38
joint venture
Shenzhen
Ronghua
Electromechanical 1076954.64
Engineering Co.Ltd
Shenzhen Runhua
Automobile 1445425.56
Trading Company
193ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Changes in this period Closing balance
Declare the
The invested Other distribution Provision
book impairment
entity equity of cash for other
value provision
changes dividends or impairment
profits
Subtotals 2522380.20
total 11977845.58
(4) Impairment testing of long-term equity investments
1) The recoverable amount is determined based on the net amount of fair value minus disposal
expenses
Current provision for
project book value recoverable amount
impairment amount
Guangdong Jianbang
Group (Huiyang) 191184186.54 28585102.29 162599084.25
Industrial Co. Ltd
Subtotals 191184186.54 28585102.29 162599084.25
(Continued from the table above)
Determination method of fair value Key parameters and their
project
and disposal expenses determination basis
Fair value is determined using the Expected selling price sales
Guangdong Jianbang
asset-based method and related volume production cost and
Group (Huiyang)
disposal costs are determined using other related expenses of the
Industrial Co. Ltd
the estimated disposal cost rate product
Subtotals
2) Other instructions
At the end of the reporting period the company conducted impairment tests on Guangdong
Jianbang Group (Huiyang) Industrial Co. Ltd. which showed signs of impairment. Based on the
principle of prudence impairment provisions were made for assets that may incur losses.(II) Notes to items of the parent company income statement
1. Operating revenue/Operating cost
(1) Details
Number of the same period last
Number of this issue
project year
income cost income cost
Main business 66692989.08 35527944.94 80116913.98 33500490.21
other business 55199.50 32529.16
total 66748188.58 35527944.94 80149443.14 33500490.21
194ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Number of the same period last
Number of this issue
project year
income cost income cost
Among them:
Revenue generated
8980139.711396009.1614830961.90886697.76
from contracts with
customers
(2) Income breakdown information
1) Revenue generated from contracts with customers broken down by type of goods or services
Number of this issue Number of the same period last year
project
income cost income cost
real estate 8980139.71 1396009.16 14830961.90 886697.76
Subtotals 8980139.71 1396009.16 14830961.90 886697.76
2) Revenue generated from contracts with customers broken down by operating region
Number of the same period last
Number of this issue
project year
income cost income cost
Guangdong Province 8980139.71 1396009.16 14830961.90 886697.76
Subtotals 8980139.71 1396009.16 14830961.90 886697.76
3) The revenue generated from contracts with customers is decomposed by the time of transfer of
goods or services
Number of this Number of the same
project
issue period last year
Recognize revenue at a certain point in time 8980139.71 14830961.90
Subtotals 8980139.71 14830961.90
(3) Information related to performance obligations
The types of
The nature of The expected quality
Time for Is he the
Important the goods refund to assurance
fulfilling main
project payment promised by customers that provided by
contractual responsible
terms the company the company the company
obligations person
for transfer undertakes and related
obligations
After the
contract is
At the time signed Guaranteed
Sale of commercial
of product advance correct not have Quality
goods housing
delivery payment of Assurance
the contract
price shall be
195ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
The types of
The nature of The expected quality
Time for Is he the
Important the goods refund to assurance
fulfilling main
project payment promised by customers that provided by
contractual responsible
terms the company the company the company
obligations person
for transfer undertakes and related
obligations
made
Collect
according to
the contract
When
Provide agreement Rental
providing correct not have not have
services upon Services
services
completion of
general
services
(4) The income recognized in this period which is included in the beginning book value of the
contractual liability is 889857.1 yuan.
2. Investment income
Number of this Number of the same
project
issue period last year
Long term equity investment income accounted for
-93927.64
by equity method
Long term equity investment income accounted for
7012181.03
by cost method
Investment income generated from the disposal of
568863.591816919.56
long-term equity investments
Investment income of trading financial assets during
161491.79
the holding period
Dividend income obtained from other equity
777600.00537600.00
instrument investments during the holding period
total 1346463.59 9434264.74
XV. Other supplementary information
(I) Non-recurring profit or loss
1. Schedule of non-recurring profit or loss
(1) Details
project amount of money describe
196ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Gains and losses from the disposal of non-current assets
including the offsetting portion of impairment provisions 740874.42
already made for assets
Government subsidies included in the current period's profit
and loss except for those closely related to the company's
normal business operations in compliance with national
753298.54
policies and regulations enjoyed according to established
standards and having a sustained impact on the company's
profit and loss
Except for effective hedging business related to the normal
operation of the same company non-financial enterprises shall
bear gains and losses from changes in fair value of financial 18461736.59
assets and liabilities held by them as well as gains and losses
from the disposal of financial assets and liabilities
Funds occupancy fees charged to non-financial enterprises
included in the current period's profit and loss
Profit and loss from entrusting others to invest or manage
assets
Profit and loss obtained from external entrusted loans
Losses of various assets caused by force majeure factors such
as natural disasters
Reversal of impairment provision for accounts receivable
separately tested for impairment
The investment cost of acquiring subsidiaries associates and
joint ventures by the enterprise is less than the income
generated from the fair value of the identifiable net assets of
the investee that the enterprise should enjoy at the time of
acquiring the investment
Net profit and loss of subsidiaries arising from mergers of
enterprises under the same control from the beginning of the
period to the merger date
Non-monetary asset exchange gains and losses
Debt restructuring gains and losses
One-time expenses incurred by enterprises due to the
discontinuation of related business activities such as expenses
for resettling employees etc
The one-time impact of adjustments to tax accounting and
other laws and regulations on the current period's profit and
loss
One time confirmation of share-based payment expenses due
to cancellation or modification of equity incentive plans
197ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
For cash-settled share based payments gains or losses arising
from changes in fair value of employee compensation payable
after the exercise date
Gains and losses arising from changes in fair value of
investment properties measured using the fair value model for
subsequent measurement
Revenue generated from transactions with significantly unfair
transaction prices
Profit and loss arising from contingencies unrelated to the
normal operation of the company's business
Custody fee income obtained from entrusted operation
Other non-operating income and expenses other than those
2170518.43
mentioned above
Other profit and loss items that meet the definition of
non-recurring gains and losses
Subtotals 22126427.98
Reduction: The impact of corporate income tax (the reduction
863081.95
in income tax is represented by "-")
Minority shareholder equity impact (after tax) -5628.01
Net non-recurring gains and losses attributable to the owners
21268974.04
of the parent company
2. Explanation on Defining Non-recurring Profit and Loss Items Listed in the Interpretation
Announcement No. 1 on Information Disclosure of Companies that Offer Securities to the Public
(Revised in 2023) as Recurrent Profit and Loss Items According to Definitions and Principles
amount of
project reason
money
Continuously occurring from year to
Refund of handling fees for
86280.28 year not occasional recognized as
withholding personal income tax
recurring gains and losses
Continuously occurring from year to
Value-added tax additional deduction 2627.57 year not occasional recognized as
recurring gains and losses
（2） Return on equity and earnings per share
1. Detailed information
Weighted average net Earnings per share (RMB/share)
Profit during the reporting period assets basic earnings per Dilute earnings per
Yield (%) share share
Net profit attributable to common
-4.91%-0.17-0.17
shareholders of the company
Net profit attributable to common
shareholders of the company after -5.50% -0.20 -0.20
deducting non-recurring gains and
198ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
Weighted average net Earnings per share (RMB/share)
Profit during the reporting period assets basic earnings per Dilute earnings per
Yield (%) share share
losses
2. Calculation process of weighted average return on equity
project Serial Number Number of this issue
Net profit attributable to common shareholders of the company A -176710947.65
profit and loss B 21268974.04
Net profit attributable to common shareholders of the company
C=A-B -197979921.69
after deducting non-recurring gains and losses
Initial net assets attributable to common shareholders of the
D 3691082484.20
company
Newly added net assets attributable to common shareholders of the
E
company such as issuing new shares or debt-to-equity swaps
Accumulated number of months from the following month to the
F
end of the reporting period for newly added net assets
Reduced net assets attributable to common shareholders of the
G
company such as repurchases or cash dividends
Accumulated number of months from the following month to the
H
end of the reporting period to reduce net assets
other I -2259043.13
other Accumulated number of months from the following
month to the end of the reporting period for J 6
increasing or decreasing net assets
Number of months in the reporting period K 12
L= D+A/2+
Weighted average net assets E×F/K-G×H/K±I×J/ 3601597488.81
K
ROE M=A/L -4.91%
Weighted average return on net assets after deducting
N=C/L -5.50%
non-recurring gains and losses
3. Calculation process of basic earnings per share and diluted earnings per share
(1) The calculation process of basic earnings per share
project Serial Number Number of this issue
Net profit attributable to common shareholders of the
A -176710947.65
company
profit and loss B 21268974.04
Net profit attributable to common shareholders of the
C=A-B -197979921.69
company after deducting non-recurring gains and losses
199ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2024
project Serial Number Number of this issue
Total number of shares at the beginning of the period D 1011660000.00
Increase in the number of shares due to the conversion of
housing provident fund into share capital or distribution of E
stock dividends etc
Issuance of new shares or debt-to-equity swaps to increase the
F
number of shares
Accumulated number of months from the following month to
G
the end of the reporting period for increasing shares
Reduce the number of shares due to repurchase and other
H
reasons
Accumulated number of months from the following month to
I
the end of the reporting period for reducing shares
The number of shares reduced during the reporting period J
Number of months in the reporting period K 12
Weighted average of outstanding common stocks L=D+E+F×G/K-H×I/K-J 1011660000.00
basic earnings per share M=A/L -0.17
Basic earnings per share after deducting non-recurring gains
N=C/L -0.20
and losses
(2) The calculation process of diluted earnings per share
The calculation process of diluted earnings per share is the same as that of basic earnings per share.
200
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