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. 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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. 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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 assetsEnterprise 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