深深房Ｂ:2021年半年度报告（英文版）

SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE

& PROPERTIES (GROUP) CO. LTD.INTERIM REPORT 2021

August 20211

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.Liu Zhengyu chairman of the Company’s Board Zhao Zhongliang the Company’s Chief

Financial Officer and Qiao Yanjun head of the Company’s financial department (equivalent

to financial manager) hereby guarantee that the Financial Statements carried in this Report

are factual accurate and complete.All the Company’s directors have attended the Board meeting for the review of this Report

and its summary.Certain descriptions about the Company’s operating plans or work arrangements for the

future mentioned in this Report and its summary the implementation of which is subject to

various factors shall NOT be considered as promises to investors. Therefore investors are

reminded to exercise caution when making investment decisions.The Company is subject to the Guideline No. 3 of the Shenzhen Stock Exchange on

Information Disclosure by Industry—for Listed Companies Engaging in Real Estate.Risks facing the Company have been explained in detail in “X Risks Facing the Company andCountermeasures” in “Part III Management Discussion and Analysis” herein.The Company has no interim dividend plan either in the form of cash or stock.This Report and its summary have been prepared in both Chinese and English. Should there

be any discrepancies or misunderstandings between the two versions the Chinese versions

shall prevail.Table of Contents

Part I Important Notes Table of Contents and Defin... 2

Part II Corporate Information and Key Financial In... 6

Part III Management Discussion and Analysis ......... 9

Part IV Corporate Governance ....................... 23

Part V Environmental and Social Responsibility ..... 25

Part VI Significant Events ......................... 26

Part VII Share Changes and Shareholder Information.. 33

Part VIII Preferred Shares ......................... 38

Part IX Bonds ...................................... 39

Part X Financial Statements ........................ 40

Documents Available for Reference

1. The financial statements with the personal signatures and stamps of the Company’s legal

representative Chief Financial Officer and head of the financial department; and

2. The originals of all the documents and announcements disclosed by the Company on Securities

Times China Securities Journal and Ta Kung Pao during the Reporting Period.Definitions

Term Definition

The State-owned Assets Supervision and Administration Commission of the

“Shenzhen SASAC” or the “Municipal SASAC”

People’s Government of Shenzhen Municipal

SIHC Shenzhen Investment Holdings Co. Ltd.ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.The “Company” the “Group” “SPG” or “we”

and its consolidated subsidiaries except where the context otherwise requires

Shenzhen Property Management Shenzhen Property Management Co. Ltd.Petrel Hotel Shenzhen Petrel Hotel Co. Ltd.Zhentong Engineering Shenzhen Zhentong Engineering Co. Ltd.Huazhan Construction Supervision Shenzhen Huazhan Construction Supervision Co.Ltd.Jianbang Group Guangdong Jianbang Group (Huiyang) Industrial Co. Ltd.Part II Corporate Information and Key Financial Information

I Corporate Information

Stock name SPG SPG-B Stock code 000029 200029

Stock exchange for stock

Shenzhen Stock Exchange

listing

Company name in Chinese 深圳经济特区房地产(集团)股份有限公司

Abbr. (if any) 深房集团

Company name in English (if

ShenZhen Special Economic Zone Real Estate&Properties (Group).co.，Ltd．any)

Abbr. (if any) SPG

Legal representative Liu Zhengyu

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）82293000-4715 （86 755）82293000-4712

Fax （86 755）82294024 （86 755）82294024

Email address spg@163.net spg@163.net

III Other Information

1. Contact Information of the Company

Indicate by tick mark whether any change occurred to the registered address office address and their zip codes website address and

email address of the Company in the Reporting Period.□ Applicable √ Not applicable

No change occurred to the said information in the Reporting Period which can be found in the 2020 Annual Report.2. Media for Information Disclosure and Place where this Report is Kept

Indicate by tick mark whether any change occurred to the information disclosure media and the place for keeping the Company’s

periodic reports in the Reporting Period.□ Applicable √ Not applicable

The newspapers designated by the Company for information disclosure the website designated by the CSRC for disclosing the

Company’s periodic reports and the place for keeping such reports did not change in the Reporting Period. The said information can

be found in the 2020 Annual Report.IV Key Financial Information

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

H1 2021 H1 2020 Change (%)

Operating revenue (RMB) 694598218.47 596258495.40 16.49%

Net profit attributable to the listed

132447122.14 97274985.72 36.16%

company’s shareholders (RMB)

Net profit attributable to the listed

company’s shareholders before exceptional 131437988.58 85184270.99 54.30%

gains and losses (RMB)

Net cash generated from/used in operating

-285540751.46 -212242798.59 -34.53%

activities (RMB)

Basic earnings per share (RMB/share) 0.1309 0.0962 36.07%

Diluted earnings per share (RMB/share) 0.1309 0.0962 36.07%

Weighted average return on equity (%) 3.47% 2.68% 0.79%

30 June 2021 31 December 2020 Change (%)

Total assets (RMB) 6204351775.64 4936916746.74 25.67%

Equity attributable to the listed company’s

3843098587.64 3797512488.22 1.20%

shareholders (RMB)

V Accounting Data Differences under Chinese Accounting Standards (CAS) and

International Financial Reporting Standards (IFRS) and Foreign Accounting Standards

1. Net Profit and Equity Differences under CAS and IFRS

√ Applicable □ Not applicable

Unit: RMB

Net profit attributable to the listed company’s Equity attributable to the listed company’s

shareholders shareholders

H1 2021 H1 2020 Ending amount Beginning amount

Under CAS 132447122.14 97274985.72 3843098587.64 3797512488.22

Adjusted as per IFRS

Under IFRS 132447122.14 97274985.72 3843098587.64 3797512488.22

2. Net Profit and Equity Differences under CAS and Foreign Accounting Standards

□ Applicable √ Not applicable

No such differences for the Reporting Period.3. Reasons for Accounting Data Differences Above

□ Applicable √ Not applicable

XI Exceptional Gains and Losses

√ Applicable □ Not applicable

Unit: RMB

Item Amount Note

Non-operating income and expense other than the above 1345511.41

Less: Income tax effects 336377.85

Total 1009133.56 --

Explanation of why the Company classifies a gain/loss item as exceptional according to the definition in the Explanatory

Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss

Items or reclassifies any exceptional item listed in the said explanatory announcement as recurrent:

□ Applicable √ Not applicable

No such cases for the Reporting Period.Part III Management Discussion and Analysis

I Principal Activity of the Company in the Reporting Period

(I) Industry development in the Reporting Period

In the Reporting Period domestic economy continued to recover steadily and registered a stable performance

with good momentum for reinforcement and growth. In order to achieve the central government's target of

stabilizing land and housing prices as well as market expectations real estate regulators have successfully

implemented a series of policies including "three red lines" real estate loan concentration management

mechanism in 2020 and "concentrated supply of land" in the first half of 2021. These policies resulted in a

significant difference between different cities and different districts in the same city and an overall stable and slow

trend in nationwide real estate market.(II) Operating performance of the Company in the Reporting Period

1. Steadily advancing of key tasks

(1) Achievements in real estate sales target. The Company strengthened project promotion and customer

development through multiple channels and accelerated the pace of destocking. In the first half of this year

incremental contracted sales reached 70.2% of the annual target exceeding the scheduled plan.

(2) Smoothly advanced project construction. In Shenzhen the Company completed the construction of municipal

road monitoring work for Longgang Project in March and achieved completion acceptance in April; in Shantou

the Company completed the completion acceptance for Tianyuewan Phase II at the end of June; in Huizhou the

Company has recovered the construction for Linxijun Project since the end of June.

(3) Breakthrough in project expansion. In the Reporting Period the Company successfully acquired 51% of

Jianbang Group's equity shares laying a good foundation for the sustainable development of the main business. At

present the transaction transfer and registration change have been completed.

(4) Improving asset quality and efficiency. First the Company completed resource asset system inventory which

has laid a foundation for subsequent asset revitalization and efficiency improvement; second it continued to

promote the revitalization of inefficient assets and strived to reduce the loss of hotel rooms; third it actively

expanded the renting and the occupancy rate of SPG Plaza has increased significantly; fourth it further planned

the integration of business sectors and optimize the asset structure layout.

(5) Stable and orderly safe production. First the Company implemented safe production accountability level by

level and strengthened safety hazard investigation and treatment; second it strictly implemented pandemic

prevention and control requirements and performed prevention and control against the pandemic and recovery of

production; third it properly handled all kinds of complaint petitions as well as events affecting social stability to

create a good atmosphere for celebrating "The 100th Anniversary of the Founding of CPC". In the first half of this

year the Company's safe production pandemic prevention and control and complaint petitions as well as events

affecting social stability kept stable.2. Continuous improvement of corporate management

(1) Improvement in efficiency of financial management. First the Company completed the distribution of profits

for 2020 achieving normal cash dividend for three consecutive fiscal years; it attained financial benefits through

agreed deposits and other means fully improving the use efficiency of idle funds.

(2) Pay close attention to the implementation of cost control. The Company strictly implemented full cost whole

process and penetration management and paid close attention to the budget and final accounting of major

projects achieving good results in cost control.(3) Significant improvement in lease management. The Company promoted lease property through multiple

channels and tried its best to "retain existing customers and develop new customers". In the Reporting Period the

Company's cumulative lease revenue increased by 64.6% year-on-year accounting for 51.2% of the annual target.

(4) Human resource management innovation. First the Company has explored the establishment of a sound

incentive/constraint mechanism and introduced employee investment mechanism in Linxijun Project allowing

employees to share the profit of market-based project operations and management so as to stimulate employees'

enthusiasm and creativity; second it completed the selection of some middle-level management personnel

providing new vitality and power for the Company's development; third it carried out work for full coverage of

special review of personnel files promoting human resources optimization and sustainable development.3. Clean and righteous corporate culture

(1) Pragmatic approach in Party building. Always adhering to the leadership role of the Party building the

Company actively organized "Three Sessions and One Class" "First Topics" learning themed Party day special

Party class and other activities and integrated the education of the Party history into everyday life consolidating

the belief of the Party members and cadres.

(2) The development of clean and honest Party conduct was further deepened. The Company has drafted the list of

key tasks for development of clean and honest Party conduct and anti-corruption work as well as key points of

annual supervision. Besides the Company signed 2021 responsibility letters regarding such development

promoting comprehensive and strict administration of the Party to be implemented at the grassroots level. The

Company also convened special meetings of supervision system and conducted special investigation effectively

strengthening political supervision and purifying political ecology.

(3) Agglomerate mental efforts through corporate culture development. The Company organized football tennis

badminton table tennis yoga and other interest group and sports activities enriching employees' lifestyle after

work. The Company successfully held the "SPG Cup" Table Tennis Invitational Competition carried out the

"Zouhongqiao" outdoor activities and "Employee Collective Birthday Party" creating a sound environment where

the Company builds platforms and the employees participate enhancing corporate cohesiveness.The Company is subject to the Guideline No. 3 of the Shenzhen Stock Exchange on Information Disclosure by Industry—for Listed

Companies Engaging in Real Estate.New additions to the land bank:

Consideratio

Floor area The Total land n of the

Name of land Planned use How the land

Location Site area（㎡） with plot Company’s price Company’s

lot or project of land is obtained

ratio （㎡） interest (RMB’0000) interest

(RMB’0000)

Changbu

Village

Xinxu Town

Linxinyuan Huiyang Commercial

(the Linxijun District and 198676.60 397353.20 Acquisition 51.00% 60667 45000

project) Huizhou residential

City

Guangdong

Province

Cumulative land bank:

Name of project/area Site area（0000 ㎡） Floor area（0000 ㎡） Floor area available for

development（0000 ㎡）

Xinfeng Building in Shantou 0.59 2.66 2.66

Linxinyuan Phase II 2.57 7.72 7.72

Linxinyuan Phase III 4.31 9.57 9.57

Linxinyuan Phase IV 3.23 6.45 6.45

Total 10.70 26.40 26.40

Development status of major projects:

Time Planned Floor

Cumulat Expecte Cumulat

for floor area

The ively d total ive

commen % % area complet

City/reg Name of Locatio Compan Site area complet investm investm

Status cement develop construc with ed in the

ion project n y’s （㎡） ed floor ent ent

of ed ted plot Current

interest area (RMB’0 (RMB’0

construc ratio Period

（㎡） 000) 000)

tion （㎡）（㎡）

Tianyue Chaoya 1

Complet 100.00 100.00

Shantou wan ng October 95% 33362 127770 127770 127770 65485 55524

ed % %

Phase II District 2018

Framew

Linxiny

ork in 11 June

Huizhou u an Huiyang 51.00% 30% 30.00% 64278 159761 0 0 115750 27750

construc 2021

Phase I

tion

Sales status of major projects:

Pre-sale/ Pre-sale/

Floor

Cumulati sales Floor sales

area

Floor vely revenue Cumulati area revenue

The Floor pre-sold/

area pre-sold/ generate vely settled in settled in

City/regi Name of Compan area with sold in

Location Status available sold in the settled the the

on project y’s plot ratio the

for sale floor Current floor Current Current

interest （㎡） Current

（㎡） area Period area (㎡) Period Period

Period

（㎡） (RMB’0 （㎡） (RMB’0

（㎡）

000) 000)

Chuanqi

Shenzhe Donghu Luohu Ready

100.00% 55727 32857 31973 6694 45140 25701 7596 47714

n Mingyua District for sale

Shenzhe Cuilinyu Longgan Ready

100.00% 60111 56137 52048 114 372 51969 338 1148

n an g District for sale

Tianyue

Chaoyan Ready

Shantou wan 100.00% 153470 160372 106440 8829 4770 95822 7350 3883

g District f or sale

Phase I

Tianyue

Chaoyan On

Shantou wan 100.00% 127770 137059 9819 8584 5113 0

g District p re-sale

Phase II

Rental status of major projects:

The Company’s Rentable area Cumulative Average

Name of project Location Use

interest （㎡） rented area （㎡） occupancy rate

Primary land development:

□ Applicable √ Not applicable

Financing channels:

Financing cost Maturity structure

Ending balance of

Financing channel range/average

financings Within 1 year 1-2 years 2-3 years Over 3 years

financing cost

Development strategy and operating plan for the coming year:

As comes the second half of 2021 the global pandemic continues to evolve. Therefore the international

environment becomes more complicated and challenging and domestic economic recovery remains unstable and

uneven. The government upholds the principle that “housing is for living in not for speculation” encourages both

housing purchase and renting and implements city-specific policies to promote the steady and healthy

development of the real estate market. As the real estate enterprises have gradually shifted their development

goals from “quantity first” to “quality first” the industry is expected to become more concentrated and face new

changes.The Company will resolutely implement the decisions and deployment of the CPC Shenzhen Municipal

Committee Shenzhen Municipal People's Government State-owned Assets Supervision and Management

Commission of Shenzhen Municipal People's Government and Shenzhen Investment Holdings Co. Ltd. The

“Dual Zone” construction in Shenzhen and the policy of deepening the reform of state-owned assets and

enterprises have brought strategic opportunities for the Company to plan for projects reserves stabilize operation

and management innovate the profit model and open up growth areas to get off to a good start in the 14th

Five-Year Plan period.(I) Adhere to two-wheel drive for further optimization of business layout. First the Company will intensify efforts

to research real estate policies and work on land development surveys and land reserves to continually improve

performance indicators and strengthen the foundation for high-quality development. Second the Company will

foster new growth drivers to increase profits.(II) Focus on operation to increase competitiveness. First the Company will promote project construction and

marketing to fulfill the annual mandates. Second the Company will pay close attention to property leasing to

ensure the accomplishment of annual goals. Third the company will step up to increase quality and efficiency for

assets that have been ineffectively operated and clear out zombie companies. Both actions will strive for

substantial results.(III) Make sound overall planning to conduct major works in an orderly fashion. Taking major tasks that influence

and drive the overall as its main direction and focusing on implementation and effects the Company will

coordinately advance such major tasks to ensure full completion of annual goals.(IV) Strengthen the foundation and work on Party building and a fine Party culture. The 100th anniversary of the

founding of the Party is an opportunity. Playing a leadership role the Party organization will set the right direction

keep in mind the big picture ensure the implementation of Party policies and principles and mobilize and give

full play to the exemplary and vanguard role of Party members. Also it will be strict in Party discipline firmly

promote a fine Party culture and a corruption-free environment and implement the “Two Responsibilities” in the

process. The Company will take a two-pronged approach on both Party building and business operation

integrating Party leadership into corporate governance to lead to high-quality development of the Company.(V) Make unremitting efforts on production safety epidemic prevention and control and stability maintenance of

petitioning. First the Company will regularly improve the mechanism of production safety management by

implementing the accountability system for production safety intensifying efforts on checking potential safety

hazards and enhancing safety governance in major areas. Such actions will help maintain a stable production

safety creating sound conditions to achieve annual business objectives. Second the Company will adhere to

regular pandemic prevention and control with targeted measures and promote vaccination for all the staff

ensuring that all duties are performed and measures are elaborated to guarantee a steady situation of pandemic

prevention and control. Third the Company will coordinately focus on stability maintenance of petitioning and

public opinion monitoring to create a harmonious and stable environment for business development.Provision of guarantees for homebuyers on bank mortgages:

√ Applicable □ Not applicable

Guarantee amou

Project Guarantee period Note

nt (RMB’0000)

Cuilinyuan Until the property ownership certificate is 4238.32

registered as collateral and handed over to bank for

keeping

Chuanqi Donghu Until the property ownership certificate is 4550.44

Mingyuan registered as collateral and handed over to bank for

keeping

Tianyuewan Until the property ownership certificate is 29270.98

registered as collateral and handed over to bank for

keeping

Total 38059.74

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

II Core Competitiveness Analysis

As a pioneer of real estate development enterprises in Shenzhen the Company 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 the first to win the bid in the auction of land use rights held in the

Shenzhen Special Economic Zone etc.Over the past 40 years the company has developed more than 100 high-rise buildings 500 multi-storey residential

buildings and 400 garden villas with a cumulative building area of more than 4 million square meters. 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.III Core Business Analysis

See contents under the heading “I Principal Activity of the Company in the Reporting Period” above.Year-on-year changes in key financial data:

Unit: RMB

H1 2021 H1 2020 Change (%) Main reason for change

Operating revenue 694598218.47 596258495.40 16.49%

Cost of sales 331975678.55 343908087.46 -3.47%

Sales halt in H1 2020

Selling expense 16815600.06 8536448.38 96.99%

caused by the pandemic

Administrative expense 40299584.22 40253977.26 0.11%

Notice on increase in

Finance costs -16414487.59 -5747585.98 -185.59% deposit interest in the

Reporting Period

Income tax expense 47841099.11 43599689.97 9.73%

Net cash generated Payment for land by

from/used in operating -285540751.46 -212242798.59 -34.53% project company in the

activities Reporting Period

Payment for share

Net cash generated

acquisition and purchase

from/used in investing -1750516694.28 1020263040.32 -271.58%

of monetary fund in the

activities

Reporting Period

Net cash generated Receiving borrowings

from/used in financing 243164282.22 -166923900.00 245.67% from shareholders by

activities project company

Payment for share

Net increase in cash and

-1792911046.07 641032673.52 -379.69% acquisition and purchase

cash equivalents

of monetary fund in the

Reporting Period

Major changes in the profit structure or sources of the Company in the Reporting Period:

□ Applicable √ Not applicable

No such cases in the Reporting Period.Breakdown of operating revenue:

Unit: RMB

H1 2021 H1 2020

As % of total As % of total

Change (%)

Operating revenue operating revenue Operating revenue operating revenue

(%) (%)

Total 694598218.47 100% 596258495.40 100% 16.49%

By business segment

Real estate 479956940.17 69.10% 382458149.70 64.14% 25.49%

Construction service 107167710.21 15.43% 124548909.59 20.89% -13.96%

Rental service 30225726.14 4.35% 21780551.36 3.65% 38.77%

Property

70348672.05 10.13% 63715063.94 10.69% 10.41%

management service

Other 6899169.90 0.99% 3755820.81 0.63% 83.69%

By product

Housing units 479562902.07 69.04% 381862911.60 64.04% 25.59%

Shops and parking

394038.10 0.06% 595238.10 0.10% -33.80%

place

Other 214641278.30 30.90% 213800345.70 35.86% 0.39%

By geographic segment

Guangdong Province 635008108.14 91.42% 546573961.29 91.67% 16.18%

Other regions in

59300114.59 8.54% 49542269.40 8.31% 19.70%

China

Overseas 289995.74 0.04% 142264.71 0.02% 103.84%

Operating division product category or operating segment contributing over 10% of operating revenue or operating profit:

√ Applicable □ Not applicable

Unit: RMB

YoY change in YoY change in

Operating Gross profit YoY change in

Cost of sales operating revenue gross profit

revenue margin cost of sales (%)

(%) margin (%)

By business segment

Real estate 479956940.17 137669876.19 71.32% 25.49% -0.24% 7.40%

Construction 107167710.21 104546845.37 2.45% -13.96% -14.43% 0.55%

service

Rental service 30225726.14 17487210.75 42.14% 38.77% 2.38% 20.57%

Property

management 70348672.05 68110422.82 3.18% 10.41% 10.00% 0.36%

service

Other 6899169.90 4161323.42 39.68% 83.69% -45.59% 143.31%

By product

Housing units 479562902.07 137432957.73 71.34% 25.59% -0.24% 7.42%

Shops and

394038.10 236918.46 39.87% -33.80% -0.32% -20.20%

parking place

Other 214641278.30 194305802.36 9.47% 0.39% -5.63% 5.78%

By geographic segment

Guangdong

635008108.14 272780664.52 57.04% 16.18% -7.52% 11.01%

Province

Other regions in

59300114.59 59195014.03 0.18% 19.70% 20.90% -1.00%

China

Overseas 289995.74 100.00% 103.84% 0.00%

Main business data of the most recent period restated according to changed statistical caliber for the Reporting period

□ Applicable √ Not applicable

Any over 30% YoY movements in the data above and why:

□ Applicable √ Not applicable

IV Non-Core Business Analysis

□ Applicable √ Not applicable

IV Analysis of Assets and Liabilities

1. Significant Changes in Asset Composition

Unit: RMB

End of the same period of last Increase/d

End of Reporting Period

year ecrease in

Notes to significant changes

Proportion to Proportion to proportio

Amount Amount

total assets total assets n

882306006.3 2687465070.Monetary assets 14.22% 54.44% -40.22% Caused by purchase of monetary fund

2 01

Accounts

74309539.94 1.20% 59590944.06 1.21% -0.01%

receivable

2974957505. 1220464112. Caused by acquisition of project

Inventories 47.95% 24.72% 23.23%

77 56 company

Investment 603353638.5

9.72% 616365621.53 12.48% -2.76%

property 4

Long-term equity

377489.65 0.01% 377489.65 0.01% 0.00%

investments

Fixed assets 26885430.32 0.43% 28039978.43 0.57% -0.14%

Short-term

70773140.58 1.14% 76893995.94 1.56% -0.42%

borrowings

Contract 375038081.5 Caused by acquisition of project

6.04% 196786977.19 3.99% 2.05%

liabilities 5 company

Accounts payable 99752685.51 1.61% 176926614.28 3.58% -1.97%

498393009.6

Taxes payable 8.03% 459709646.95 9.31% -1.28%2

582192504.4 Caused by borrowings provided by

Other payables 9.38% 277105129.74 5.61% 3.77%

0 shareholders of project company

2. Major Assets Overseas

□ Applicable √ Not applicable

3. Assets and Liabilities at Fair Value

□ Applicable √ Not applicable

4. Restricted Asset Rights as at the Period-End

Item Ending carrying value Reasons

Discount of notes 7818054.79 Endorsement or discount of undue commercial

receivable acceptance bills

Accounts receivable 62955085.79 Pledge for short-term borrowings

Total 70773140.58 --

V Investment Analysis

1. Total Investments Made

□ Applicable √ Not applicable

2. Significant Equity Investments Made in the Reporting Period

Unit: RMB

Whe

Status ther

Nam Shar

Mai Fun Inve as on invo

e of Invest ehol Investmen

n ding stme the lved Date of

inve ment Invested ding Part Produc Predicte t return in Disclosure index (if

busi Reso nt date of in disclosure

stee metho amount perc ners t type d return the current any)

ness urce Dura the any (if any)

enter ds enta period

es s tion balanc legal

prise ge

e sheet actio

Gua

ngzh

ngdo

ng Announcement on

Bopi

Jian Acquisition of 51% of

Ente

bang Real Equity in Guangdong

rpris

Grou estat Real Jianbang Group

Self- e Five

p e acquisi 450000 estate Compl 637500 6 May (Huiyang) Industrial

51% own Man year -91307.39 No

(Hui deve tion 000.00 develo eted 000.00 2021 Co. Ltd. (No.:

ed age s

yang lop pment 2021-019) disclosed on

ment

) ment China Securities

Con

Indu Securities Times Ta

sulti

strial Kung Pao and Cninfo.ng

Co.Co.Ltd.Ltd.450000 637500

Total -- -- -- -- -- -- -- -- -91307.39 -- -- --

000.00 000.00

3. Significant Non-equity Investments Ongoing in the Reporting Period

□ Applicable √ Not applicable

4. Financial Investments

(1) Securities Investments

□ Applicable √ Not applicable

No such cases in this Reporting Period

(2) Investment in Derivative Financial Instruments

□ Applicable √ Not applicable

No such cases in this Reporting Period

VII Sale of Major Assets and Equity Interests

1. Sale of Major Assets

□ Applicable √ Not applicable

No such cases in this Reporting Period

2. Sale of Major Equity Interests

□ Applicable √ Not applicable

VIII Principal Subsidiaries and Joint Stock Companies

Principal subsidiaries and joint stock companies with an over 10% effect on the Company’s net profit:

Unit: RMB

Relationsh Main

Company Registered Operating

ip with the business Total assets Net assets Operating revenue Net profit

name capital profit

Company scope

Guangdong

Jianbang

Developmen

Group

Subsidiary t of real 2800000.00 1023102075.02 -1549917.29 0.00 -91307.39 -91307.39

(Huiyang)

estate

Industrial Co.Ltd.Shenzhen SPG

Developmen

Longgang

Subsidiary t of real 30000000.00 291381110.38 116441993.42 12349349.52 2565776.40 1933857.30

Development

estate

Co. Ltd.Shantou SEZ

Wellam FTY Developmen

Building Subsidiary t of real 91226120.44 171965270.41 122065273.72 486539.69 -433963.83 -325472.86

Development estate

Co. Ltd.Shantou

Huafeng Real Developmen

Estate Subsidiary t of real 80000000.00 952838038.56 16202291.90 38827292.52 -5899083.53 -4439312.03

Development estate

Co. Ltd.Great Wall

Estate Co. Subsidiary Lease 2051146.00 18103134.85 -82279011.14 260141.10 -127844.80 -127844.80

Inc. (U.S.)

Shenzhen Subsidiary I nstallation 10000000.00 354346510.04 24662150.24 107897719.95 52797.59 52797.59

Zhentong and

Engineering construction

Co. Ltd.Shenzhen

Property Property

Subsidiary 7250000.00 96154839.52 33708573.94 73071549.40 2560817.58 1891025.01

Management management

Co. Ltd.Shenzhen

Hotel

Petrel Hotel Subsidiary 30000000.00 46411619.33 39806172.20 7280593.26 -2343315.93 -2343315.93

Service

Co. Ltd.Shenzhen

Huazhan

Construction

Construction Subsidiary 8000000.00 9782457.53 9582055.63 961700.17 -349055.94 -354129.71

supervision

Supervision

Co. Ltd.Xin Feng Investment

Enterprise Subsidiary a nd 502335.00 126007345.51 -452775018.16 2173952.38 1775215.94 1740183.41

Co. Ltd. management

Subsidiaries obtained or disposed in the Reporting Period:

Influence on overall production and

Name Way of gaining and disposing subsidiaries

operation as well as performance

The revenue and profit are respectively

Guangdong Jianbang Group (Huiyang) expected to be RMB6 billion and

Share acquisition

Industrial Co. Ltd. RMB637.5 million for the period from

Y2023 to Y2025.Information about principal subsidiaries and joint stock companies:

1. In May 2021 through the payment of consideration of RMB450 million the Group acquired 51% equity interest in Guangdong

Jianbang Group (Huiyang) Industrial Co. Ltd. The project company will develop the Linxingyuan Project with a gross site area of

200000 square meters and a total capacity building area of 4 billion square meters which will be developed in four phases and is

expected to achieve revenue of RMB6 billion and total profit of approximately RMB1.8 billion from 2023 to 2025. The Group has

control over the project company which will be included in the scope of consolidation in May 2021.2. The subordinate subsidiaries engaged in real estate development also include: Shenzhen SPG Longgang Development Co. Ltd.Shantou SEZ Wellam FTY Building Development Co. Ltd. Shantou Huafeng Real Estate Development Co. Ltd. The Cuilinyuan

project developed by Shenzhen SPG Longgang Development Co. Ltd. brought forward RMB12 million in H1 2021 (the percentage

of accumulative sales carried forward was 95%) accounting for 2.40% of the Company's operating revenue. Jinyedao and

YuejingDongfang developed by Shantou SEZ Wellam FTY Building Development Co. Ltd. left a few amount of remaining

buildings for sale. And Shantou Huafeng Real Estate Development Co. Ltd. was responsible for the development of Tianyuewan

project (divided into Phase I and Phase II). Tianyuewan Phase I was opened for sale in October 2016 and completed in December

2019. The Phase II started construction in November 2018 and was completed at the end of June 2021. The overall sales progress is

relatively slow with an accumulated sales rate of about 68% for Phase I and 7% for Phase II.3. Shenzhen Zhentong Engineering Co. Ltd. was engaged in the business of building installation and maintenance with the H1 2021

operating revenues of RMB108 million and of 15.53% to the operating revenues of the Company.4. Shenzhen Property Management Co. Ltd was engaged in the industry of property management and the business was steady. The

H1 2021 operating revenues was of RMB73 million that was of 10.52% to the operating revenues of the Company.5. The H1 2021 net profit of Xin Feng Enterprise Co. Ltd. was of RMB1.74 million which mainly due to the changes of exchange

rate and it conducts no business.6. The H1 2021 net profit of Shenzhen Petrel Hotel Co. Ltd. was of RMB-2.34 million which mainly due to the epidemic.IX Structured Bodies Controlled by the Company

□ Applicable √ Not applicable

X Risks Facing the Company and Countermeasures

1. Macroeconomic risks and countermeasures

The real estate industry has a greater correlation with the macroeconomy and is more influenced by the

macroeconomic cycle. At present along with the accelerated rate of global vaccination and the lifting of lockdown

measures in various countries the global economic recovery has been significantly enhanced but the world

economic situation remains complicated and severe due to the repeated ups and downs of the pandemic and

frequent variants of the virus. The Company will continue to pay attention to the international and domestic

macroeconomic situation and actively adjust its business strategy.2. Industry regulation risks and countermeasures

Under the guidance of "housing is for living in not for speculation" the regulation and control policies are

progressive. The market is entering a period of adjustment and the industry is entering a stage of profound

changes. The development of the Company is undergoing new tests. The Company will continue to deepen its

research on industry policies follow the national strategies innovate its operating model and optimize its

development method.3. Business operating risks and countermeasures

Due to the implementation of a series of policies such as the real estate loan concentration management

mechanism and "centralized land supply" it poses new challenges for the Company to expand its development

land reserve. The Company will pay close attention to policy changes formulate targeted land expansion plans

and actively explore new ways to expand land resources to strengthen the foundation of the main business. At the

same time the Company will actively explore new areas and cultivate new business models.Part IV Corporate Governance

I 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

Resolutions of 2020

Annual General Meeting

disclosed on China

The 2020 Annual General Annual General

63.55% 28 April 2021 29 April 2021 Securities Securities

Meeting Meeting

Times Ta Kung Pao and

www.cninfo.com.cn (No.:

2021-011)

Resolutions of the 1st

Extraordinary General

Meeting of 2021 disclosed

The 1st Extraordinary General Extraordinary on China Securities

63.55% 16 July 2021 17 July 2021

Meeting of 2021 General Meeting Securities Times Ta Kung

Pao and

www.cninfo.com.cn (No.:

2021-026)

2. Extraordinary General Meeting Convened at Request of Preference Shareholders with Resumed Voting

Rights

□ Applicable √ Not applicable

II Change of Directors Supervisors and Senior Management

□ Applicable √ Not applicable

No changes occurred to the Company’s directors supervisors and senior management during the Reporting Period. For their

information see the 2020 Annual Report.III Interim Dividend Plan

□ Applicable √ Not applicable

The Company has no interim dividend plan either in the form of cash or stock.IV Equity Incentive Plans Employee Stock Ownership Plans or Other Incentive Measures for

Employees

□ Applicable √ Not applicable

No such cases in the Reporting Period.Part V Environmental and Social Responsibility

I Major Environmental Issues

Indicate by tick mark whether the Company or any of its subsidiaries is a heavily polluting business identified by the environmental

protection authorities of China.□ Yes √ No

Administrative penalties imposed for environmental problems during the Reporting Period

Influence on

Rectification

Name Reason Case Result production and

measures

operation

N/A N/A N/A N/A N/A N/A

Other environmental information disclosed with reference to the heavily polluting business

The Company and its subsidiaries are not imposed any administrative penalties for environmental problems during the Reporting

Period.Reason for failure of disclosing other environmental information

The Company and its subsidiaries isn’t a heavily polluting business identified by the environmental protection authorities of China.II Social Responsibility

While pursuing sustainable and healthy development the Company actively fulfils its social responsibilities and

demonstrates its corporate social values. The Company adheres to compliance management cares for employees

treats suppliers and customers with integrity and supports poverty alleviation. The Company is committed to

public welfare activities serves national pandemic prevention and control and contributes to society with

practical actions. During the Reporting Period the Company supported the work of family affairs in the region

donated RMB30000 to families in need in Jiabei Community Nanhu Sub-district and jointly launched the

activity of "Positive Energy from the Youth to the Party" with Shenzhen Min Ai Integrated Service Center for the

Disabled. Property management companies affiliated with the Company have twinned with community

workstations to prevent and control pandemic and carried out volunteer services for nucleic acid testing and have

completed testing on 41000 residents in 27 communities 334 buildings and 19310 households.Part VI Significant Events

I Commitments of the Company’s De Facto Controller Shareholders Related Parties and

Acquirers as well as the Company Itself and Other Entities Fulfilled in the Reporting Period

or Ongoing at the Period-End

√ Applicable □ Not applicable

Date of

Promiso Type of Term of

Commitment Details of commitment commitment Fulfillment

r commitment commitment

making

Commitments made in share reform

Commitments made in acquisition

documents or shareholding alteration

documents

The Company's major

asset restructuring was

terminated and trading of

the stocks was resumed on

9 November 2020. The

The

Commitments made in time of asset Asset Company promises that it 9 November

Compan Two months Completed

restructuring restructuring w ill not initiate the major 2020

asset restructuring after

the announcement of

termination was disclosed

within at least two

months.Commitments made in time of IPO or

refinancing

Equity incentive commitments

Other commitments made to minority

interests

Fulfilled on time Yes

Specific reasons for failing to fulfill

commitments on time and plans for N/A

next step (if any)

II Occupation of the Company’s Capital by the Controlling Shareholder or any of Its Related

Parties for Non-Operating Purposes

□ Applicable √ Not applicable

No such cases in the Reporting Period.III Irregularities in the Provision of Guarantees

□ Applicable √ Not applicable

No such cases in the Reporting Period.IV Engagement and Disengagement of Independent Auditor

Are the interim financial statements audited?

□ Yes √ No

The interim financial statements have not been audited.V Explanations Given by the Board of Directors and the Supervisory Committee Regarding

the Independent Auditor's “Modified Opinion” on the Financial Statements of the Reporting

Period

□ Applicable √ Not applicable

VI Explanations Given by the Board of Directors Regarding the Independent Auditor's

“Modified Opinion” on the Financial Statements of Last Year

□ Applicable √ Not applicable

VII Insolvency and Reorganization

□ Applicable √ Not applicable

No such cases in the Reporting Period.VIII Legal Matters

Significant lawsuits and arbitrations:

√Applicable □ Not applicable

Involved

General Index to

amount Disclosure

informat Provision Progress Decisions and effects Execution of decisions disclosed

(RMB’00 date

ion information

00)

Xi’an In ? Xi’an Business Tourism Shaanxi High People’s 20 March Annual

2100 No

Project execution Company Limited (hereinafter Court Sold all assets 2021 Report 2020

Lawsuit referred to as “Business of Business Company (full text)Company”) had to pay for the by auction in (No.:

compensation RMB36.62 million accordance with laws 2021-007)

and the relevant interest (from 14 in 2004. The applicant on

September 1998 to the payment has received www.cninfo

day) to Xi’an Fresh Peak RMB15.20 million. .com.cn

Company within one month after Now Business

the judgment entering into force. Company has no

If the Business Company failed to executable properties

pay in time it had to pay double and Xi’an Joint

debt interests to Xi’an Fresh Peak Commission on

Company for the overdue period; Commerce has been

② Xi’an Joint Commission on refusing to execute the

Commerce had jointly and ruling. It is difficult to

severally obligation of the recover the rest.interests of the compensation; .③

Business Company shall bear

RMB227500 of the acceptance

fee and the security fee.Other legal matters:

□ Applicable √ Not applicable

IX Punishments and Rectifications

□ Applicable √ Not applicable

No such cases in the Reporting Period.X Credit Quality of the Company as well as its Controlling Shareholder and De Facto

Controller

□ Applicable √ Not applicable

XI Major Related-Party Transactions

1. Continuing Related-Party Transactions

As % Obta

Relati of Approve Met inabl

Over

onship Type Pricin Total total d hod e

Specific Transa the

Related with of g value value transacti of mar Disclosure Index to disclosed

transacti ction approv

party the transac princip (RMB’0 of all on line settl ket date information

on price ed line

Comp tion le 000) same-t (RMB’0 eme price

or not

any ype 000) nt for

transac sam

tions e-ty

trans

actio

Wholly-

owned

Contro subsidiar

lled by y Negoti 2020 Annual

Shenzhe the Engine undertoo ate Ban Report (No.:

n Jianan same ering k throug k 20 March 2021-007)

-- 260 260 Not --

(Group) compa constr engineer h trans 2021 disclosed on

Co. Ltd. ny as uction ing agree fer www.cninfo.com.c

the construc ments n

parent tion of

party

Wholly-

owned

subsidiar

Contro

y paid

lled by Negoti 2020 Annual

total

Shenzhe the Engine ate Ban Report (No.:

account

n Jianan same ering throug k 20 March 2021-007)

for -- 4033.5 4033.5 Not --

(Group) compa constr h trans 2021 disclosed on

construc

Co. Ltd. ny as uction agree fer www.cninfo.com.c

tion

the ments n

contract

parent

ed to

party

Total -- -- 4293.5 -- 4293.5 -- -- -- -- --

Large-amount sales return in

N/A

detail

Give the actual situation in the

Reporting Period (if any) where

an estimate had been made for the

N/A

total value of continuing

related-party transactions by type

to occur in the Reporting Period

Reason for any significant

difference between the transaction

N/A

price and the market reference

price (if applicable)

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.4. Amounts Due to and from Related Parties

□ Applicable √ Not applicable

No such cases in the Reporting Period.5. Transactions with Related Finance Companies or Finance Companies Controlled by the Company

□ 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 finance company controlled by the Company or any other related parties.6. Other Major Related-Party Transactions

□ Applicable √ Not applicable

No such cases in the Reporting Period.XII Major Contracts and Execution thereof

1. Entrustment Contracting and Leases

(1) Entrustment

□ Applicable √ Not applicable

No such cases in the Reporting Period.

(2) Contracting

□ Applicable √ Not applicable

No such cases in the Reporting Period.

(3) Leases

□ Applicable √ Not applicable

No such cases in the Reporting Period.2. Major Guarantees

□ Applicable √ Not applicable

No such cases in the Reporting Period.3. Cash Entrusted for Wealth Management

Unit: RMB’0000

Unrecovered

Unrecovered overdue amount

Type Funding source Amount Undue amount

overdue amount with provision for

impairment

Bank financial

Self-funded 60000 60104.81 0 0

products

Bank financial

Self-funded 70000 70128.14 0 0

products

Total 130000 130232.95 0 0

Particulars of cash entrusted for wealth management with single significant amount or low security bad liquidity and no capital

preservation

□Applicable √ Not applicable

Wealth management entrustments with possible impairments including an expectedly unrecoverable principal:

□Applicable √ Not applicable

4. Significant Continuing Contracts

□ Applicable √ Not applicable

5. Other Significant Contracts

□ Applicable √ Not applicable

No such cases in the Reporting Period.XIII Other Significant Events

In order to implement the plan of the State Council for transferring parts of state-owned capital to enrich the social

security fund in January 2021 SIHC the controlling shareholder of the Company decided to transfer 64288426

tradable ordinary A-shares of the Company (accounting for 6.355% of the total share capital) to Shenzhen

State-owned Equity Management Co. Ltd. (hereinafter referred to as "State-owned Equity Company") free of

charge to enrich the social security fund State-owned Equity Company is a wholly-owned subsidiary newly

established by SIHC to manage the transferred state-owned equity in a special account. In March 2021 the

registration procedure for the above share transfer was completed. Before and after the free transfer of

state-owned equity the controlling shareholder and actual controller of the Company remained unchanged. For

more details see the Suggestive Announcement on the Free Transfer of Parts of State-owned Equity of

Controlling Shareholders to Enrich the Social Security Fund (Announcement No. 2021-001) and the

Announcement on the Completion of Free Transfer Registration of Parts of State-owned Equity of Controlling

Shareholders to Enrich the Social Security Fund (Announcement No. 2021-003) disclosed on 29 January and 18

March 2021.After deliberation and approval at the 2020 General Meeting of Shareholders the Company decided to purchase

liability insurance for Directors Supervisors and Senior Managers. For more details please refer to the

Announcement on Purchasing Liability Insurance for Directors Supervisors and Senior Managers

(Announcement No. 2021-008) and the Announcement on the Resolution of the 2020 General Meeting of

Shareholders (Announcement No. 2021-011) disclosed on 20 March and 29 April 2021. During the Reporting

Period the issue regarding Liability Insurance for Directors Supervisors and Senior Managers has been

completed.After deliberation and approval at the 61st Meeting of the 7th Board of Directors the Company purchased wealth

management products with its own funds during the Reporting Period. For more details see the Announcement on

Resolutions of the 61st Meeting of the 7th Board of Directors (Announcement No. 2021-012) the Announcement

on Authorizing the Management Group to Use Own Funds to Purchase Wealth Management Products

(Announcement No. 2021-017) and the Announcement on the Progress of Using Own Funds to Purchase Wealth

Management Products (Announcement No. 2021-022) disclosed on 29 April and 4 June 2021.After deliberation and approval at the 62nd Meeting of the 7th Board of Directors the Company decided to

acquire 51% equity of Guangdong Jianbang Group (Huiyang) Industrial Co. Ltd. held by Guangzhou Bopi

Enterprise Management Consulting Co. Ltd. with its own capital of RMB450 million. Transaction transfer and

registration changes were completed in the Reporting Period. For more details see the Announcement on

Resolutions of the 62nd Meeting of the 7th Board of Directors (Announcement No. 2021-018) the Announcement

on Acquisition of 51% Equity of Guangdong Jianbang Group (Huiyang) Industrial Co. Ltd. (Announcement No.2021-019) and the Announcement on Progress of Acquisition of 51% Equity of Guangdong Jianbang Group

(Huiyang) Industrial Co. Ltd. (Announcement No. 2021-020) disclosed on 6 May and 15 May 2021.The Measures for the Management of Employees' Co-investment and the Measures for the Management of

Employees' Co-investment of Linxijun Project were deliberated and approved at the 63rd Meeting of the 7th

Board of Directors and the 2021 First Extraordinary General Meeting. For more details see the Announcement on

Resolutions of the 63rd Meeting of the 7th Board of Directors (Announcement No. 2021-023) and the

Announcement on Resolutions of the 2021 First Extraordinary General Meeting of Shareholders (Announcement

No. 2021-026) disclosed on 1 July and 17 July 2021.XIV Significant Events of Subsidiaries

□ Applicable √ Not applicable

Part VII Share Changes and Shareholder Information

I Share Changes

1. Share Changes

Unit: share

Before Increase/decrease (+/-) After

Shares as

divide

dividend Percentage New nd Subt Percentag

Shares converted Other Shares

(%) issues conver otal e (%)

from capital

ted

reserves

from

profit

1. Restricted shares 0 0.00% 0 0 0 0 0 0 0.00%

1.1 Shares held by the state 0 0.00% 0 0 0 0 0 0 0.00%

1.2 Shares held by

0 0.00% 0 0 0 0 0 0 0.00%

state-own legal person

1.3 Shares held by other

0 0.00% 0 0 0 0 0 0 0.00%

domestic investors

Among which: shares held

0 0.00% 0 0 0 0 0 0.00%

by domestic legal person

Shares held by domestic

0 0.00% 0 0 0 0 0 0 0.00%

natural person

1.4 Oversea shareholdings 0 0.00% 0 0 0 0 0 0.00%

Among which: shares held

0 0.00% 0 0 0 0 0 0 0.00%

by oversea legal person

Shares held by oversea

0 0.00% 0 0 0 0 0 0 0.00%

natural person

2. Unrestricted shares 1011660000 100.00% 0 0 0 0 0 1011660000 100.00%

2.1 RMB ordinary shares 891660000 88.14% 0 0 0 0 0 891660000 88.14%

2.2 Domestically listed

120000000 11.86% 0 0 0 0 0 120000000 11.86%

foreign shares

2.3 Oversea listed foreign

0 0.00% 0 0 0 0 0 0 0.00%

2.4 Other 0 0.00% 0 0 0 0 0 0 0.00%

3. Total shares 1011660000 100.00% 0 0 0 0 0 1011660000 100.00%

Reasons for share changes:

□ Applicable √ Not applicable

Approval of share changes:

□ Applicable √ Not applicable

Transfer of share ownership:

□ Applicable √ Not applicable

Progress on any share repurchase:

□ Applicable √ Not applicable

Progress on reducing the repurchased shares by means of centralized bidding:

□ Applicable √ Not applicable

Effects of share changes on the basic and diluted earnings per share equity per share attributable to the Company’s ordinary

shareholders and other financial indicators of the prior year and the prior accounting period respectively:

□ Applicable √ Not applicable

Other information that the Company considers necessary or is required by the securities regulator to be disclosed:

□ Applicable √ Not applicable

2. Changes in Restricted Shares

□ Applicable √ Not applicable

II. Issuance and Listing of Securities

□ Applicable √ Not applicable

III. Total Number of Shareholders and Their Shareholdings

Unit: share

Total number of preference shareholders with

Total number of ordinary

61695 resumed voting rights at the period-end (if any) 0

shareholders at the period-end

(see Note 8)

Shareholding of ordinary shareholders holding more than 5% shares or the top 10 of ordinary shareholders

Increa Shares in

Total se/decr Restricte pledge

ordinary ease in d Non-restrict marked or

Nature of Shareholdin

Name of shareholder shares held the ordinary ed ordinary frozen

shareholder g percentage

at the Report shares shares held Status

Amo

period-end ing held of

unt

Period shares

Shenzhen Investment Holdings Co. State-owned legal -6428

57.19% 578595836 578595836

Ltd person 8426

Domestic

Shenzhen State-owned Equity +6428

non-state-owned 6.35% 64288426 64288426

Management Co. Ltd. 8426

legal person

Domestic natural

Yang Jianmin 0.39% 3960377 3960377

person

Domestic natural

Lin Weirong 0.32% 3202800 3202800

person

Domestic natural

Pan Jun 0.21% 2132300 2132300

person

Domestic natural

Liu Yuqing 0.19% 1947900 1947900

person

Domestic natural

Liang Weicheng 0.17% 1735100 1735100

person

Domestic natural

Zang Xiangfeng 0.16% 1612163 1612163

person

Domestic

Nanjing Fengrun Investment

non-state-owned 0.16% 1568247 1568247

Development Co. Ltd.legal person

Domestic natural

He Qiao 0.15% 1554800 1554800

person

Strategic investor or general legal person becoming a

top-10 ordinary shareholder due to rights issue (if any) None

(see Note 3)

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

shareholders above there exists associated relationship among the other shareholders or

whether they are persons acting in concert as prescribed in the

Administrative Measures for the Acquisition of Listed Companies.Explain if any of the shareholders above was involved in

entrusting/being entrusted with voting rights or waiving None

voting rights

Special account for share repurchases (if any) among the

None

top 10 shareholders (see note 11)

Top 10 unrestricted shareholders

Unrestricted shares held at the Shares by type

Name of shareholder

period-end Type Shares

RMB ordinary

Shenzhen Investment Holdings Co. Ltd 578595836 578595836

RMB ordinary

Shenzhen State-owned Equity Management Co. Ltd. 64288426 64288426

RMB ordinary

Yang Jianmin 3960377 3960377

RMB ordinary

Lin Weirong 3202800 3202800

RMB ordinary

Pan Jun 2132300 2132300

RMB ordinary

Liu Yuqing 1947900 1947900

RMB ordinary

Liang Weicheng 1735100 1735100

RMB ordinary

Zang Xiangfeng 1612163 1612163

RMB ordinary

Nanjing Fengrun Investment Development Co. Ltd. 1568247 1568247

RMB ordinary

He Qiao 1554800 1554800

Among the top 10 unrestricted public shareholders of the Company

Shenzhen State-owned Equity Management Co. Ltd. is a wholly-owned

Related or acting-in-concert parties among top 10

subsidiary of Shenzhen Investment Holdings Co. Ltd. The Company

unrestricted public shareholders as well as between top

does not know whether there exists associated relationship among the

10 unrestricted public shareholders and top 10

other shareholders or whether they are persons acting in concert as

shareholders

prescribed in the Administrative Measures for the Acquisition of Listed

Companies.Among the top 10 shareholders of the Company the third fourth sixth

Top 10 ordinary shareholders involved in securities seventh eighth and tenth shareholders respectively held 1466400

margin trading (if any) (see Note 4) shares 1999900 shares 1887900 shares 1735100 shares 1000663

shares and 1010000 shares in their credit securities accounts.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.IV Change in Shareholdings of Directors Supervisors and Senior Management

□ Applicable √ Not applicable

No such cases in the Reporting Period. For details see Annual Report 2020.V Change of the Controlling Shareholder or the De Facto Controller

Change of the controlling shareholder in the Reporting Period

□ Applicable √ Not applicable

No such cases in the Reporting Period.Change of the de facto controller in the Reporting Period

□ Applicable √ Not applicable

No such cases in the Reporting Period.Part VIII Preference Shares

□ Applicable √ Not applicable

No preference shares in the Reporting Period.Part IX Bonds

□ Applicable √ Not applicable

Part X. Financial Statements

I. Auditor’s Report

Whether the semi-annual report has been audited?

□ Yes √ No

The semi-annual report of the Company has not been audited.II. Financial Statements

The financial statements of the company have been prepared in China Yuan.1. Consolidated Statement of Financial Position

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

As at 30 June 2021

Presented in RMB

Item 30 June 2021 30 June 2020

Current assets:

Cash at bank and on hand 882306006.32 2687465070.01

Provision of Settlement fund

Funds lent

Financial assets held for trading 1302329484.00

Derivative financial assets

Notes receivable 40590521.89 35438045.34

Accounts receivable 74309539.94 59590944.06

Accounts receivable financing

Prepayments 4572021.68 3205534.51

Insurance premiums receivables

Cession premiums receivables

Provision of cession premiums

Other receivables 18818282.54 32745043.84

Including: Interest receivable

Dividends receivable 1052192.76 1052192.76

Recoursable Financial assets

acquired

Inventories 2974957505.77 1220464112.56

Contractual assets

Assets held for sale

Non-current assets due within one

year

Other current assets 132804668.25 102907134.79

Total current assets 5430688030.39 4141815885.11

Non-current assets:

Loans and payments

Debt investment

Investments in other debt

obligations

Long-term receivables

Long-term equity investments 377489.65 377489.65

Investments in other equity

38081275.18 37510860.51

instrument

Other non-current financial assets

Investment property 603353638.54 616365621.53

Fixed assets 26885430.32 28039978.43

Construction in progress

Productive living assets

Oil and gas assets

Use rights assets

Intangible assets

Development costs

Goodwill

Long-term prepaid expense 678423.76 61667.53

Deferred tax assets 104287487.80 112745243.98

Other non-current assets

Total non-current assets 773663745.25 795100861.63

Total assets 6204351775.64 4936916746.74

Current liabilities:

Short-term loans 70773140.58 76893995.94

Borrowings from central bank

Deposit funds

Financial liabilities at fair value

through

Derivative financial liabilities

Notes payable 330993002.80

Accounts payable 99752685.51 176926614.28

Advances from customers 21336752.68 5940092.15

Contractual liabilities 375038081.55 196786977.19

Funds from sale of financial assets

with repurchase agreements

Deposits from customer and

interbank

Funds received as an agent of

stock exchange

Funds received as stock underwrite

Payroll payable 54471652.80 60467834.09

Tax payable 498393009.62 459709646.95

Other payables 582192504.40 277105129.74

Including: Interest payable 16535277.94 16535277.94

Dividends payable

Handling charges and

commissions payable

Cession premiums payables

Liabilities held for sale

Non-current liabilities due within

one year

Other current liabilities 18752463.49 8917027.07

Total current liabilities 2051703293.43 1262747317.41

Non-current liabilities:

Provision for insurance contracts

Long-term loans

Debentures payable

Including: Preferred shares

Perpetual bonds

Lease liabilities

Long-term payables 8245567.40 7480233.43

Long-term employee benefits

payable

Provisions

Deferred income

Deferred tax liabilities 9601940.74 9601940.74

Other non-current liabilities

Total non-current liabilities 17847508.14 17082174.17

Total liabilities 2069550801.57 1279829491.58

Equity:

Share capital 1011660000.00 1011660000.00

Other equity instruments

Including: Preferred shares

Perpetual bonds

Capital reserves 978244910.11 978244910.11

Less: treasury shares

Other comprehensive income 29316447.41 28163050.13

Specific reserve

Surplus reserve 218724273.67 218724273.67

Generic Risk Reserve

Retained earnings 1605152956.45 1560720254.31

Total equity attributable to shareholders

3843098587.64 3797512488.22

of the company

Non-controlling interests 291702386.43 -140425233.06

Total equity 4134800974.07 3657087255.16

Total liabilities and equity 6204351775.64 4936916746.74

Legal representative: Zhengyu Liu General Accountant：Zhongliang Zhao The head of theaccounting department: Yanjun Qiao

2、Financial Position Statement of the Parent EntityPresented in RMB

Item 30 June 2021 30 June 2020

Current assets:

Cash at bank and on hand 643929563.08 2329517987.02

Financial assets at fair value

1302329484.00

through profit or loss

Derivative financial assets

Notes receivable

Accounts receivable 311815.21 5418024.74

Accounts receivable financing

Prepayments 200000.00 200000.00

Other receivables 1405959127.23 1160414195.39

Including: Interest receivable

Dividends receivable

Inventories 106232584.55 207606220.98

Contractual assets

Assets held for sale

Non-current assets due within one

year

Other current assets 9541021.50 945499.13

Total current assets 3468503595.57 3704101927.26

Non-current assets:

Debt investment

Investments in other debt

obligations

Long-term receivables

Long-term equity investments 600584167.95 150584167.95

Investments in other equity

14076578.89 13508202.32

instruments

Other non-current financial assets

Investment property 487883822.03 499145554.67

Fixed assets 16575227.39 17743083.73

Construction in progress

Productive living assets

Oil and gas assets

Use rights assets

Intangible assets

Development costs

Goodwill

Long-term prepaid expense 675857.90 61667.53

Deferred tax assets 83740299.64 83740299.64

Other non-current assets

Total non-current assets 1203535953.80 764782975.84

Total assets 4672039549.37 4468884903.10

Current liabilities:

Short-term loans

Financial liabilities at fair value

through

Derivative financial liabilities

Notes payable

Accounts payable 36585944.45 77187914.50

Advances from customers

Contractual liabilities 320567916.55 172241938.46

Payroll payable 30993173.09 27255860.05

Tax payable 489269453.56 450281265.17

Other payables 182615239.41 194609459.87

Including: Interest payable 16535277.94 16535277.94

Dividends payable

Liabilities held for sale

Non-current liabilities due within

one year

Other current liabilities 16028395.83 8612096.92

Total current liabilities 1076060122.89 930188534.97

Non-current liabilities:

Long-term loans

Debentures payable

Including: Preferred shares

Perpetual bonds

Lease liabilities

Long-term payables

Long-term employee benefits

payable

Provisions

Deferred income

Deferred tax liabilities 4812392.47 4812392.47

Other non-current liabilities

Total non-current liabilities 4812392.47 4812392.47

Total liabilities 1080872515.36 935000927.44

Equity:

Share capital 1011660000.00 1011660000.00

Other equity instruments

Including: Preferred shares

Perpetual bonds

Capital reserves 964711931.13 964711931.13

Less: treasury shares

Other comprehensive income 1699528.31 1131151.74

Specific reserve

Surplus reserve 195594660.26 195594660.26

Retained earnings 1417500914.31 1360786232.53

Total equity 3591167034.01 3533883975.66

Total liabilities and equity 4672039549.37 4468884903.10

3、Consolidated Statement of Profit or Loss and Other Comprehensive IncomePresented in RMB

Item 6 months ended 30 June 2021 6 months ended 30 June 2020

1. Revenue 694598218.47 596258495.40

Including: Operating revenue 694598218.47 596258495.40

Interest income

Insurance premium income

Handling charge and commission income

2. Expenses 520035493.63 472559039.99

Including: operating expenses 331975678.55 343908087.46

Interest expense

Handling charge and commission expense

Refund of Insurance premium

Net payment for insurance claims

Net provision for insurance contracts

Commissions on insurance polices

Cession charges

Taxes and surcharges 147359118.39 85608112.87

Selling and distribution expense 16815600.06 8536448.38

General and administrative expenses 40299584.22 40253977.26

Research and development expense

Financial expense -16414487.59 -5747585.98

Including: Interest expense

Interest income 16398025.57 5932973.60

Add: Other income 643733.52 557379.14

Investment income (“-” for losses) 15217058.60

Including: Income from investment in associates

and joint ventures (“-” for losses)

Income from derecognition of financial assets

at amortized cost (“-” for loss)

Foreign exchange gain (“-” for loss)

Net gain on exposure hedges (“-” for loss)

Gains from changes in fair value (“-” for losses) 2329484.00

Credit impairment loss (“-” for loss) 1142580.28

Impairment losses (“-” for losses) 534500.00

Gains from assets disposal (“-” for losses)

3. Operating profit (“-” for loss) 178678522.64 140008393.15

Add: Non-operating income 1370757.88 2902033.77

Less: Non-operating expense 25246.47 2001278.48

4. Profit before income tax (“-” for losses) 180024034.05 140909148.44

Less: Income tax expense 47841099.11 43599689.97

5. Net profit for the year (“-” for net losses)) 132182934.94 97309458.47

（5.1 Classification according to operation continuity5.1.1 Net profit from continuing operations (“-” for net

132182934.94 97309458.47

loss)

5.1.2Net profit from discontinued operations (“-” for net

loss)

5.2 Classification according to attribute

5.2.1 Members of the parent entity ("-" for net loss) 132447122.14 97274985.72

5.2.2 Non-controlling interests (“-” for net loss) -264187.20 34472.75

6. Other comprehensive income (net of tax) 459551.69 706086.70

Other comprehensive income (net of tax) attributable to

1153397.28 369487.94

members of the parent entity

6.1 Other comprehensive income

Items that will not be reclassified subsequently to profit 570414.67 -415909.17

or loss

6.1.1 Remeasurement of defined benefit plan

liability or asset

6.1.2 Other comprehensive income that cannot be

transferred to profit or loss under the equity method

6.1.3 Changes in the fair value of investments in

570414.67 -415909.17

other equity instruments

6.1.4 Changes in the fair value of the company’s

credit risks

6.1.5 Other

6.2 Other comprehensive income

Items that may be reclassified subsequently to profit or 582982.61 785397.11

loss

6.2.1 Other comprehensive income that can be

transferred to profit or loss under equity method

6.2.2 Changes in the fair value of investments in

other debt obligations

6.2.3 Other comprehensive income arising from

the reclassification of financial assets

6.2.4 Provision for credit impairments in other

debt investment

6.2.5 Effective portion of gains or losses arising

from cash flow hedging instruments

6.2.6 Translation differences arising from

582982.61 785397.11

translation of foreign currency financial statements

6.2.7 Other

Other comprehensive income (net of tax)

-693845.59 336598.76

attributable to non-controlling interests

7. Total comprehensive income for the period 132642486.63 98015545.17

Attributable to members of parent entity 133600519.42 97644473.66

Attributable to non-controlling interests -958032.79 371071.51

8. Earnings per share

8.1 Basic earnings per share 0.1309 0.0962

8.2 Diluted earnings per share 0.1309 0.0962

In a business combination involving enterprises under common control (net losses)/net profit of combined parties before the

combination date is RMB 0.00 and (net losses)/net profit of combined parties in prior period is RMB 0.00.。

Legal representative: Zhengyu Liu General Accountant：Zhongliang Zhao The head of the accountingdepartment: Yanjun Qiao

4、Statement of Profit or Loss and Other Comprehensive Income For the Parent EntityPresented in RMB

6 months ended 30 June 6 months ended 30

Item

2021 June 2020

1. Revenue 455740814.41 231361037.44

Less: Cost of sales 115125525.93 64778297.24

Taxes and surcharges 142361068.95 69869636.48

Selling and distribution expense 11176992.53 3544826.68

General and administrative expenses 24102955.71 23912101.72

Research and development expense

Financial expense -25571620.46 -21037122.06

Including: Interest expense

Interest income 27256987.84 17954071.46

Add: Other income 8516.31 28083.69

Investment income (“-” for losses) 15217058.60

Including: Income from investment in associates and joint ventures (“-”

for losses)

Income from the derecognition of financial assets at amortized

cost (“-” for loss)

Net gain on exposure hedges (“-” for loss)

Gains from changes in fair value (“-” for losses) 2329484.00

Credit impairment loss (“-” for loss) 586866.00

Impairment losses (“-” for losses)

Gains from assets disposal (“-” for losses)

2. Operating profit (“-” for loss) 191470758.06 105538439.67

Add: Non-operating income 1334736.50 170000.10

Less: Non-operating expense 1550.00 502140.62

3. Profit before income tax (“-” for losses) 192803944.56 105206299.15

Less: Income tax expense 48074842.78 27690892.73

4. Net profit for the year (“-” for net losses) 144729101.78 77515406.42

4.1 Net profit from continuing operations (“-” for net loss) 144729101.78 77515406.42

4.2 Net profit from discontinued operations (“-” for net losses)

5. Other comprehensive income net of tax 568376.57 320373.69

6.1 Other comprehensive income

568376.57 320373.69

Items that will not be reclassified subsequently to profit or loss

6.1.1 Remeasurement of defined benefit plan liability or asset

6.1.2 Other comprehensive income that cannot be transferred to

profit or loss under the equity method

6.1.3 Changes in the fair value of investments in other equity

568376.57 320373.69

instruments

6.1.4 Changes in the fair value of the company’s credit risks

6.1.5 Other

6.2 Other comprehensive income

Items that may be reclassified subsequently to profit or loss

6.2.1 Other comprehensive income can be transferred to profit or

loss under equity method

6.2.2 Changes in the fair value of investments in other debt

obligations

6.2.3 Other comprehensive income arising from the reclassification

of financial assets

6.2.4 Provision for credit impairments in other debt investment

6.2.5 Effective portion of gains or losses arising from cash flow

hedging instruments

6.2.6 Translation differences arising from translation of foreign

currency financial statements

6.2.7 Other

6. Total comprehensive income for the period 145297478.35 77835780.11

7. Earnings per share

8.1 Basic earnings per share 0.0229 0.8119

8.2 Diluted earnings per share 0.0229 0.8119

5、Consolidated Statement Of Cash FlowsPresented in RMB

Item 6 months ended 30 June 2021 6 months ended 30 June 2020

1. Cash flows from operating activities:

Proceeds from sales of goods 958228940.19 685612219.39

Net increase deposits from customers and placements from

corporations in the same industry

Net increase in loans from central bank

Net increase in loans from other financial institution

Cash premiums received on original insurance contracts

Net proceeds from reinsurance

Net increase in deposits and investment from insures

Interest handling charges and commissions received

Net increase in fund deposits

Net increase in proceeds from repurchase transactions

Net proceeds from acting trading of securities

Refund of taxes 15618.75

Proceeds from other operating activities 248150629.39 42510375.71

Sub-total of cash inflows 1206379569.58 728138213.85

Payment for goods and services 843952869.40 214833176.41

Net increase in loans and payments on behalf

Net increase in deposits in central bank and interbank

Payments of claims for original insurance contracts

Net increase in fund paid

Interest handling charges and Interest handling charges and

Commissions on issuance policies paid

Payment to and for employees 76069285.98 73647542.55

Payments of various taxes 224980813.32 543169493.34

Payment for other operating activities 346917352.34 108730800.14

Sub-total of cash outflows 1491920321.04 940381012.44

Net cash flows from operating activities -285540751.46 -212242798.59

2. Cash flows from investing activities:

Proceeds from disposal of investments

Investment returns received 20317808.22

Net proceeds from disposal of fixed assets intangible assets

1700.00 1000.00

and other long-term assets

Net proceeds from disposal of subsidiaries and other

business units

Proceeds from other investing activities 1000000000.00

Sub-total of cash inflows 1700.00 1020318808.22

Payment for acquisition of fixed assets intangible assets and

636636.13 55767.90

other long-term assets

Payment for acquisition of investments

Net increase in pledged loans

Net payment for acquisition of subsidiaries and other

449881758.15

business units

Payment for other investing activities 1300000000.00

Sub-total of cash outflows 1750518394.28 55767.90

Net cash flows from investing activities -1750516694.28 1020263040.32

3. Cash flows from financing activities:

Proceeds from investors

Including: Proceeds from non-controlling shareholders of

subsidiaries

Proceeds from borrowings

Proceeds from other financing activities 331178702.21

Sub-total of cash inflows 331178702.21

Repayments of borrowings

Payment for dividends profit distributions or interest 88014419.99 166923900.00

Including: Dividends and profits paid to non-controlling profits

paid to non-controlling shareholders of subsidiaries

Payment for other financing activities

Sub-total of cash outflows 88014419.99 166923900.00

Net cash flows from financing activities 243164282.22 -166923900.00

4. Effect of foreign exchange rate changes on cash and cash

-17882.55 -63668.21

equivalents

5. Net increase in cash and cash equivalents -1792911046.07 641032673.52

Add: Cash and cash equivalents as at the year beginning 2669103926.82 1507189760.35

6. Cash and cash equivalent as at the year end 876192880.75 2148222433.87

6. Cash Flow Statement of the Company as the Parent

Presented in RMB

Item 30 June 2021 30 June 2020

1. Cash flows from operating activities:

Proceeds from sales of goods 646885255.16 350704786.01

Refund of taxes

Proceeds from other operating activities 332351724.25 7424276.64

Sub-total of cash inflows 979236979.41 358129062.65

Payment for goods and services 43601422.20 14267901.93

Payment to and for employees 20102672.44 17517984.42

Payments of various taxes 184272398.39 68674752.15

Payment for other operating activities 222180710.27 261704229.68

Sub-total of cash outflows 470157203.30 362164868.18

Net cash flows from operating activities 509079776.11 -4035805.53

2. Cash flows from investing activities:

Proceeds from disposal of investments

Investment returns received 20317808.22

Net proceeds from disposal of fixed assets intangible assets and

1000.00

other long-term assets

Net proceeds from disposal of subsidiaries and other business

units

Proceeds from other investing activities 1000000000.00

Sub-total of cash inflows 1000.00 1020317808.22

Payment for acquisition of fixed assets intangible assets and

91626.00 41498.00

other long-term assets

Payment for acquisition of investments

Net payment for acquisition of subsidiaries and other business

450000000.00

units

Payment for other investing activities 1644696200.26

Sub-total of cash outflows 2094787826.26 41498.00

Net cash flows from investing activities -2094786826.26 1020276310.22

3. Cash flows from financing activities:

Proceeds from investors

Proceeds from borrowings

Proceeds from other financing activities

Sub-total of cash inflows

Repayments of borrowings

Payment for dividends profit distributions or interest 88014419.99 166923900.00

Payment for other financing activities

Sub-total of cash outflows 88014419.99 166923900.00

Net cash flows from financing activities -88014419.99 -166923900.00

4. Effect of foreign exchange rate changes on cash and cash

102684.42 -191346.36

equivalents

5. Net increase in cash and cash equivalents -1673618785.72 849125258.33

Add: Cash and cash equivalents as at the year beginning 2311776619.47 963737437.55

6. Cash and cash equivalent as at the year end 638157833.75 1812862695.88

7、Consolidated Statement Of Changes in EquityPresented in RMB

30 June 2021

Attributable to shareholders’ equity of the parent company

Other equity Other Non-c

instruments Less: compr Generi Retain ontrollItem

Share Capital Specifi Surplu Total

Prefe treasur ehensi c Risk ed Subtot

ing

capita reserve c s Other equity Perpe

rence y ve Reserv earnin al

interes

l tual Other s reserve reserve

shares incom e gs ts share

bond

s e1011

97824 28163 21872 1560 3797 -1404 3657

I. Balance at the 660

4910. 050.1 4273. 72025 51248 25233 08725

end of last year 000.0

11 3 67 4.31 8.22 .06 5.160

Add:

Changes of

accounting

policies

Correction of

prior period

errors

Business

combination

involving

enterprises

under common

control

Other1011

II. Balance at 97824 28163 21872 1560 3797 -1404 3657660

the Beginning 4910. 050.1 4273. 72025 51248 25233 08725

000.0

of the Year 11 3 67 4.31 8.22 .06 5.160

III. Changes in

44432 45586 43212 47771

equity during 1153

702.1 099.4 7619. 3718.the year (“- “for 397.284 2 49 91

decrease)

(I) Total 13244 13360 13264

comprehensive 7122. 0519. 2486.397.28 32.79

income 14 42 63

(II)

Shareholder’s

contributions

and decrease of

capital

1.Contribution

by ordinary

shareholders

2. Holders of

other equity

instruments

invested capital

3. Equity settled

share-based

payments

4．Other

(III) -8801 -8801 -8801

Appropriation 4420. 4420. 4420.of profits 00 00 00

1.Appropriation

for surplus

reserves

2.Appropriation

for general

reserves

-8801 -8801 -8801

3.Distribution to

4420. 4420. 4420.shareholders

00 00 00

4．Other

(IV)Transfer

within equity

1.Share capital

increased by54

capital reserves

transfer

2..Share capital

increased by

surplus reserves

transfer

3.Transfer of

surplus reserve

to offset losses

4.Remeasurement

of defined

benefit plan

liability orasset

transfer to

retained

earnings

5. Other

comprehensive

income carried

forward to

retained

earnings

6．Other

(V) Special

Reserve

1. Appropriation

during the year

2.Utilization

during the year

43308 43308

(VI) Others 5652. 5652.28 281011

IV. Balance at 97824 29316 21872 1605 3843 29170 4134660

the end of the 4910. 447.4 4273. 15295 09858 2386. 80097

000.0

period 11 1 67 6.45 7.64 43 4.070

Presented in RMB

Item 30 June 2020

Attributable to shareholders’ equity of the parent company

Other equity Other Non-co

instruments Less: compr Generi Retain ntrollin

Share Capital Specifi Surplu Total

Prefe treasur ehensi c Risk ed Subtot

capita reserve c s Other equity Perp

rence y ve Reserv earnin al

interest

l etual Other s reserve reserve s

share shares incom e gs

bond

s e1011

I. Balance at 97824 20831 19122 1464 3666 -14189 35249660

the end of last 4910. 004.1 2838. 91581 87456 1335.8 83234.000.0

year 11 3 94 6.81 9.99 4 150

Add:

Changes of

accounting

policies

Correction of

prior period

errors

Business

combination

involving

enterprises

under common

control

Other1011

II. Balance at 97824 20831 19122 1464 3666 -14189 35249660

the Beginning 4910. 004.1 2838. 91581 87456 1335.8 83234.000.0

of the Year 11 3 94 6.81 9.99 4 150

III. Changes in

-6964 -6927

equity during 36948 371071 -68908

8914. 9426.the year (“- 7.94 .51 354.8328 34“for decrease)(I) Total 97274 97644

36948 371071 98015

comprehensive 985.7 473.6

7.94 .51 545.17

income 2 6

(II)

Shareholder’s

contributions

and decrease of

capital

1.Contribution

by ordinary

shareholders

2. Holders of

other equity

instruments

invested capital

3. Equity

settled

share-based

payments

4．Other

(III) -1669 -1669 -16692

Appropriation 23900 23900 3900.0

of profits .00 .00 0

1.Appropriation

for surplus

1.Appropriation

for general

reserves

-1669 -1669 -16692

3.Distribution

23900 23900 3900.0

to shareholders.00 .00 0

4．Other

(IV)Transfer

within equity

1.Share capital

increased by

capital reserves

transfer

2..Share capital

increased by

surplus reserves

transfer

3.Transfer of

surplus reserve

to offset losses

4.Remeasuremen

t of defined

benefit plan

liability orasset

transfer to

retained

earnings

5. Other

comprehensive

income carried

forward to

retained

earnings

6．Other

(V) Special

Reserve

1.Appropriation

during the year

2.Utilization

during the year

(VI) Others1011

IV. Balance at 97824 21200 19122 1395 3597 -14152 34560660

the end of the 4910. 492.0 2838. 26690 59514 0264.3 74879.000.0

period 11 7 94 2.53 3.65 3 320

8、Consolidated Statement Of Changes in Equity Of The Parent EntityPresented in RMB

30 June 2021

Other equity

Other Retaine

instruments Less:

Item Share Capital compreh Specific Surplus d Total

Prefere Perpet treasury Other

capital reserves ensive reserve reserve earning equity

nce ual Other shares

income s

shares bonds

10116 13607

I. Balance at the 964711 113115 195594 3533883

60000. 86232.end of last year 931.13 1.74 660.26 975.66

00 53

Add:

Changes of

accounting

policies

Correction of

prior period

errors

Other

II. Balance at the 10116 13607

964711 113115 195594 3533883

Beginning of the 60000. 86232.931.13 1.74 660.26 975.66

Year 00 53

III. Changes in

equity during the 568376. 56714 5728305year (“- “for 57 681.78 8.35decrease)

(I) Total 14472

568376. 1452974

comprehensive 9101.7

57 78.35

income 8

(II)

Shareholder’s

contributions

and decrease of

capital

1.Contribution

by ordinary

shareholders

2. Holders of

other equity

instruments

invested capital

3. Equity settled

share-based

payments

4．Other

(III)

-88014 -8801442

Appropriation of

420.00 0.00

profits

1.Appropriation

for surplus

2．对所有者（或 -88014 -8801442股东）的分配 420.00 0.00

3．Other

(IV)Transfer

within equity

1.Share capital

increased by

capital reserves

transfer

2..Share capital

increased by

surplus reserves

transfer

3.Transfer of

surplus reserve

to offset losses

4.Remeasurement

of defined

benefit plan

liability orasset

transfer to

retained earnings

5. Other

comprehensive

income carried

forward to

retained earnings

6．Other

(V) Special

Reserve

1. Appropriation

during the year

2.Utilization

during the year

(VI) Others

IV. Balance at 10116 14175

964711 169952 195594 3591167

the end of the 60000. 00914.931.13 8.31 660.26 034.01

period 00 31

Presented in RMB

30 June 2020

Other equity

Other

instruments Less:

Item Share 资本公 compre Specific Surplus Retained

Prefer Perpet treasury Other Total equity

capital 积 hensive reserve reserve earnings

ence ual Other shares

income

shares bonds10116

I. Balance at the 964711 922125 168093 1280197 3425584560000

end of last year 931.13 .77 225.53 219.96 02.39.00

Add:

Changes of

accounting

policies

Correction of

prior period

errors

Other

II. Balance at 10116

964711 922125 168093 1280197 34255845

the Beginning 60000

931.13 .77 225.53 219.96 02.39

of the Year .00

III. Changes in

equity during 320373 -894084 -89088119the year “( - “for .69 93.58 .89decrease)

(I) Total

320373 7751540 77835780.comprehensive.69 6.42 11

income

(II)

Shareholder’s

contributions

and decrease of

capital

1.Contribution

by ordinary

shareholders

2. Holders of

other equity

instruments

invested capital

3. Equity settled

share-based

payments

4．Other

(III)

-166923 -16692390

Appropriation

900.00 0.00

of profits

1.Appropriation

for surplus2．对所有者（或 -166923 -16692390股东）的分配 900.00 0.00

3．Other

(IV)Transfer

within equity

1.Share capital

increased by

capital reserves

transfer

2..Share capital

increased by

surplus reserves

transfer

3.Transfer of

surplus reserve

to offset losses

4.Remeasurement

of defined

benefit plan

liability orasset

transfer to

retained

earnings

5. Other

comprehensive

income carried

forward to

retained

earnings

6．Other

(V) Special

Reserve

1.Appropriation

during the year

2.Utilization

during the year

(VI) Others

IV. Balance at 10116

964711 12424 168093 1190788 33364963

the end of the 60000

931.13 99.46 225.53 726.38 82.50

period .00

III. Company informaition

Shenzhen Special Economic Zone Real Estate and Properties (Group) Co. Ltd. (the “Group” or “theCompany”) was established in July 1993 as approved by the Shenzhen Municipal Government with

document SFBF (1993) 724. The Company issued A shares on 15 September 1993 and issued B shares

on 10 January 1994. On 31 August 1994 the issued B shares were listed in the New York Exchange

market as class A recommendation. The total share capital is 1011660000 shares including

891660000 of A shares and 120000000 of B shares. The company business license registration

number is 91440300192179585N and the registered capital is RMB 1011660000.00. The Company’s

headquarter is located at Floor 45-48 Shen Fang Plaza Ren Min South Road Luo Hu District Shen

Zhen Guangdong province.On 13 October 2004 according to the document No. (2004) 223 “Decision on establishing Shenzheninvestment Holding Co. Ltd.” issued by State-Owned Assets Supervision and Administration

Commission of Shenzhen Municipal Government former major shareholder – Shenzhen Construction

Investment Holding Company with two assets management companies merged to form the Shenzhen

Investment Holding Co. Ltd. By the State-owned Assets Supervision and Administration Commission

of the state council and quasi-exempt obligations tender offer as approved by China Security

Regulatory Committee with document No. (2005)116 this issue of consolidated has been authorized

and the change in registration had been completed on 15 February 2006. At the end of the reporting

period Shenzhen Investment Holding Limited holds 642884262 shares of the Company (63.55% of

the total share capital). The shares are all tradable unrestricted shares.The Company has established the corporate governance structure of the general meeting of

shareholders the board of directors and the board of supervisors. At present it has human resources

financing plan department marketing department engineering management department etc.The Company and its subsidiaries (hereinafter referred to as "the Group") are principally engaged in

real estate development and sales property leasing and management retail merchandising and trade

hotel equipment installation and maintenance construction interior decoration etc.These financial statements and notes to the financial statements were approved by the Board of

Directors of the Group at the 64th Board meeting dated on 27 August 2021.For details about the scope of consolidated statements please refer to Note IX “Interests in otherentities”.Refer to Note VIII and IX for changes in consolidation scope in current period.IV. The Basis of Preparation of Financial Statements

1. Basis of preparation

The financial statements are prepared in accordance with the Accounting Standards for Business

Enterprises and corresponding application guidance interpretations and other related provisions issued

by the Ministry of Finance (collectively " Accounting Standards for Business Enterprises "). In

addition the Group also discloses relevant financial information in accordance with the China

Securities Regulatory Commission's "Information Disclosure and Reporting Rules for Companies that

Public Issued Securities" No. 15 - General Provisions on Financial Reporting (revised in 2014).These financial statements are presented on going concern basis.The Group adopts the accrual basis of accounting. Except for certain financial instruments the

financial statements are prepared under the historical cost convention. In the event that impairment of

assets occurs a provision for impairment is made accordingly in accordance with the relevant

regulations.2．Going concern

These financial statements are presented on going concern basis.V. Significant accounting policies and accounting estimates

Reminders on specific accounting policies and accounting estimates:

The company take its own operation and production characteristics into consideration to determine the

revenue recognition policy. Please refer to Note V.39 “Revenue” for specific accounting policy.1. Statement of compliance with the Accounting Standards for Business Enterprises

The financial statements have been prepared in compliance with the Accounting Standards for Business

Enterprises to truly and completely present the Group’s and the Company’s financial position as at 30

June 2021 and the Group’s and the Company’s operating results and cash flows for the half-year ended

30 June 2021.2. Accounting period

The accounting period of the Group is from 1 January to 31 December.3. Operating cycle

The Group's operating cycle is 12 months.4. Functional currency

The Group and domestic subsidiaries (including Hong Kong) use Renminbi (“RMB”) as their

functional currency. Offshore subsidiaries Great Wall Real Estate Co. LTD determine American dollar

as their functional currency according to the primary economic environment where they operate. The

financial statements of the Group have been prepared in RMB.5. Accounting treatments for business combinations involving enterprises under common control and

business combinations not involving enterprises under common control

（1）Business combinations involving enterprises under common control

For a business combination involving enterprises under common control the assets acquired and

liabilities assumed are measured based on their carrying amounts in the consolidated financial

statements of the ultimate controlling party at the combination date except for adjustments due to

different accounting policies. The difference between the carrying amount of the net assets acquired

and the consideration paid for the combination is adjusted against share premium in the capital reserve

with any excess adjusted against retained earnings.Business combination involving enterprises under common control through step by step multiple

transactions.In individual financial statements the share of the net assets of the consolidated party in the book value

of the consolidated financial statements of the ultimate controlling party of the net assets of the

consolidated party on the consolidation date calculated by the shareholding ratio on the consolidation

date shall be taken as the initial investment cost of the investment; the difference between the initial

investment cost and the sum of the book value of the investment held before the merger plus the book

value of the newly consideration paid shall be adjusted for the capital reserve. If the capital reserve is

insufficient to be written down the retained earnings shall be adjusted.In the consolidated financial statement the assets and liabilities of the consolidated party shall be

measured according to the book value of the consolidated financial statement of the ultimate

controlling party on the merger date except for the adjustment due to different accounting policies; the

balance between the book value of the investment held before the merger and the book value of the

newly consideration paid and the book value of the net assets obtained during the merger shall be

adjusted for capital reserves. If the capital reserves are insufficient to be written down the retained

earnings shall be adjusted. For long-term equity investment held by the merging party prior to acquiring

control of the merged party the relevant profit and loss other comprehensive income and other

changes in owners' equity which have been recognized by the merging party from later of the date on

which the original equity was acquired and the date on which the merging party and the merged party

are ultimately under the control of the same party to the merging date shall offset the beginning

retained earnings or profits and losses of the current period.

（2）Business combinations involving enterprises not under common control

For business combinations involving enterprises not under common control the consideration costs

include acquisition-date fair value of assets transferred liabilities incurred or assumed and equity

securities issued by the acquirer in exchange for control of the acquiree. At the acquisition date the

acquired assets liabilities and contingent liabilities of the acquiree are measured at their fair value. The

acquiree’s identifiable asset liabilities and contingent liabilities are recognised at their acquisition-date

fair value.Where the combination cost exceeds the acquirer’s interest in the fair value of the acquiree’s identifiable

net assets the difference is recognised as goodwill and subsequently measured on the basis of its cost

less accumulated impairment provisions. Where the combination cost is less than the acquirer’s interest

in the fair value of the acquiree’s identifiable net assets the difference is recognised in profit or loss for

the current period after reassessment.Business combination involving enterprises not under common control through step by step multiple

transactions.In individual financial statements the sum of the book value of the equity investment held by the

purchaser before the purchase date and the cost of the newly added investment on the purchase date is

taken as the initial investment cost of the investment. If other comprehensive income of equity

investment held before the purchase date is recognized by using the equity method such other

comprehensive income will not be treated on the purchase date and the investment will be treated on

the same basis as the direct disposal of relevant assets or liabilities by the invested entity. The owners'

equity recognized as a result of changes in owners' equity other than net profit and loss other

comprehensive income and profit distribution of the investee shall be transferred to the current profit

and loss during the disposal period at the time of disposal of the investment. If the equity investment

held before the purchase date is measured at fair value the accumulated change in fair value originally

recorded in other comprehensive income is transferred to the profit and loss of the current period

when it is calculated by the cost method.In the consolidated financial statement the consolidated cost is the sum of the consideration paid on

the purchase date and the fair value on the purchase date of the equity held by the Purchaser prior to

the purchase date. For the equity held by the Purchaser before the purchase date it shall be

re-measured according to the fair value of the equity on the purchase date and the difference between

the fair value and the book value shall be recorded into the current income; The equity held by the

Purchaser before the purchase date involves other comprehensive income and other changes in

owners' equity turn into current income on the purchase date except for other comprehensive income

generated by changes in net liabilities or net assets of the remeasured income plan of the investee.

（3）Transaction costs for business combination

The overhead for the business combination including the expenses for audit legal services valuation

advisory and other administrative expenses are recorded in profit or loss for the current period when

incurred. The transaction costs of equity or debt securities issued as the considerations of business

combination are included in the initial recognition amount of the equity or debt securities.6. Consolidated financial statements

（1）Scope of consolidated financial statements

The scope of consolidated financial statements is based on control. Control exists when the Group has

power over the investee; exposure or rights to variable returns from its involvement with the investee

and has the ability to affect its returns through its power over the investee. A subsidiary is an entity that

is controlled by the Group (including enterprise a portion of an investee as a deemed separate

component and structured entity controlled by the enterprise).

(2) Basis of preparation of consolidated financial statements

The consolidated financial statements are prepared by the Group based on the financial statements of

the Group and its subsidiaries and other relevant information. When preparing consolidated financial

statements the accounting policies and accounting periods of the subsidiaries should be consistent

with those established by the Group and all significant intra-group balances and transactions are

eliminated.Where a subsidiary or business was acquired during the reporting period through a business

combination involving enterprises under common control the financial statements of the subsidiary or

business are included in the consolidated financial statements as if the combination had occurred at the

date that the ultimate controlling party first obtained control.Where a subsidiary or business was acquired during the reporting period through a business

combination involving enterprises not under common control the identifiable assets and liabilities of

the acquired subsidiaries or business are included in the scope of consolidation from the date that

control commences.The portion of a subsidiary’s equity that is not attributable to the parent is treated as non-controlling

interests and presented separately in the consolidated balance sheet within shareholders’ equity. The

portion of net profit or loss of subsidiaries for the period attributable to non-controlling interests is

presented separately in the consolidated income statement below the “net profit” line item. When the

amount of loss for the current period attributable to the non-controlling shareholders of a subsidiary

exceeds the non-controlling shareholders’ share of the opening owners’ equity of the subsidiary the

excess is still allocated against the non-controlling interests.

（3）Changes in non-controlling interests

Where the Group acquires a non-controlling interest from a subsidiary’s non-controlling shareholders

or disposes of a portion of an interest in a subsidiary without a change in control the transaction is

treated as equity transaction and the book value of shareholder’s equity attributed to the Group and to

the non-controlling interest is adjusted to reflect the change in the Group’s interest in the subsidiaries.The difference between the proportion interests of the subsidiary’s net assets being acquired or

disposed and the amount of the consideration paid or received is adjusted to the capital reserve in the

consolidated balance sheet with any excess adjusted to retained earnings.

（4）Disposal of subsidiaries

When the Group loses control over a subsidiary because of disposing part of equity investment or

other reasons the remaining part of the equity investment is re-measured at fair value at the date when

the control is lost. A gain or loss is recognised in the current period and is calculated by the aggregate

of consideration received in disposal and the fair value of remaining part of the equity investment

deducting the share of net assets in proportion to previous shareholding percentage in the former

subsidiary since acquisition date and the goodwill.Other comprehensive income related to the former subsidiary is transferred to profit or loss when the

control is lost except for the comprehensive income arising from the movement of net liabilities or

assets in the former subsidiary’s re-measurement of defined benefit plan.7. Joint arrangement classification and accounting treatment for joint operation

A joint arrangement is an arrangement of which two or more parties have joint control. The Group

classifies joint arrangements into joint operations and joint ventures.

（1）Joint operations

A joint operation is a joint arrangement whereby the joint operators have rights to the assets and

obligations for the liabilities relating to the arrangement.The Group recognizes the following items relating to its interest in a joint operation and account for

them in accordance with relevant accounting standards:

A. its solely-held assets and its share of any assets held jointly;

B. its solely-assumed liabilities and its share of any liabilities assumed jointly;

C. its revenue from the sale of its share of the output arising from the joint operation;

D. its share of the revenue from the sale of the output by the joint operation; and

E. its solely-incurred expenses and its share of any expenses incurred jointly.

（2）Joint ventures

A joint venture is a joint arrangement whereby the joint venturers have rights to the net assets of the

arrangement.The Group adopts equity method under long-term equity investment in accounting for its investment

in joint venture.8. Cash and cash equivalents

Cash comprises cash in hand and deposits that can be readily withdrawn on demand. Cash equivalents

include short-term highly liquid investments that are readily convertible to known amounts of cash

and are subject to an insignificant risk of change in value.9. Foreign currency transactions and translation of foreign currency financial statements

（1）Foreign currency transactions

Foreign currency transactions are translated to the functional currency of the Group at the spot

exchange rates on the dates of the transactions.Monetary items denominated in foreign currencies are translated to Renminbi at the spot exchange rate

at the balance sheet date. The resulting exchange differences between the spot exchange rate on balance

sheet date and the spot exchange rate on initial recognition or on the previous balance sheet date are

recognised in profit or loss. Non-monetary items that are measured at historical cost in foreign

currencies are translated to Renminbi using the exchange rate at the transaction date. Non-monetary

items that are measured at fair value in foreign currencies are translated using the exchange rate at the

date the fair value is determined. The resulting exchange differences are recognised in profit or loss.

（2）Translation of foreign currency financial statements

When translating the foreign currency financial statements of overseas subsidiaries assets and liabilities

of foreign operation are translated to Renminbi at the spot exchange rate at the balance sheet date.Equity items excluding “retained earnings” are translated to Renminbi at the spot exchange rates at the

transaction dates.Income and expenses of foreign operation are translated to Renminbi at the spot exchange rates at the

transaction dates.Cash flow statement of foreign operation is translated to Renminbi at the spot exchange rates at the

cash flow occurence dates. Effect of foreign exchange rate changes on cash and cash equivalents is

presented separately as “Effect of foreign exchange rate changes on cash and cash equivalents” in the

cash flow statement.The resulting translation differences are recognised in other comprehensive income in shareholders’

equity of balance sheet.The translation differences accumulated in shareholders’ equity with respect to a foreign operation are

transferred to profit or loss in the period when the foreign operation is disposed.10. Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one enterprise and a financial

liability or an equity instrument of another enterprise.

（1）Recognition and derecognition of financial instruments

A financial asset or a financial liability is recognized when the Group becomes a party to the contractual

provisions of a financial instrument.If one of the following criteria is met a financial asset is derecognised:

① the contractual rights to the cash flows from the financial asset expire; or

② The financial asset was transferred and the transfer qualifies for derecognition in accordance with

criteria set out below in “Transfer of Financial Assets”.A financial liability (or part of it) is derecognized when its contractual obligation (or part of it) is

discharged or cancelled or expires. If the Group (as a debtor) makes an agreement with the creditor to

replace the current financial liability with assuming a new financial liability and contractual provisions

are different in substance the current financial liability is derecognized and a new financial liability is

recognized.If the financial assets are traded regularly the financial assets are recognized and derecognized at the

transaction date.

（2）Classification and measurement of financial assets

The Group classifies financial assets as subsequently measured at amortized cost fair value through

other comprehensive income or fair value through profit or loss at initial recognition on the basis of

both the entity’s business model for managing the financial assets and the contractual cash flow

characteristics of the financial asset.Financial assets measured at amortized cost

The Group classifies the financial assets that meet the following conditions and are not designated as

measured at fair value through profit or loss as financial assets measured at amortized cost:

? The Group's business model of managing the financial assets is to collect contractual cash flows as

the target;

? The contractual terms of the financial asset give rise on specified dates to cash flows that are solely

payments of principal and interest on the principal amount outstanding.After the initial recognition the effective interest rate method is adopted to measure the amortized cost

of such financial assets. Gains or losses arising from financial assets that are measured at amortized

cost and are not part of any hedging relationship shall be recorded in the current profit or loss when

the recognition is terminated amortized according to the effective interest method or the impairment is

recognized.Financial assets measured at fair value through other comprehensive income

The Group classifies the financial assets that simultaneously meet the following conditions and are not

specified as measured at fair value through profit or loss as financial assets measured at fair value

through other comprehensive income:

? The Group's business model of managing the financial asset aims at both collecting the contract

cash flow and selling the financial asset.? The contractual terms of the financial asset give rise on specified dates to cash flows that are solely

payments of principal and interest on the principal amount outstanding.After the initial recognition this type of financial assets are subsequently measured at fair value. The

interest impairment loss or gain and exchange loss or gain calculated using the effective interest rate

method are included in the current profit or loss while other gains or losses are included in other

comprehensive income. When derecognized the accumulated gains or losses previously recorded in

other comprehensive income shall be transferred out from other comprehensive income and recorded

in the current profit or loss.Financial assets measured at fair value through profit or loss

In addition to the above financial assets measured at amortized cost and measured at fair value through

other comprehensive income the Group classifies all other financial assets as financial assets measured

at fair value through profit or loss. At the time of initial recognition in order to eliminate or

significantly reduce accounting mismatches the Group irrevocably designates some financial assets that

should have been measured at amortized cost or measured at fair value through other comprehensive

income as financial assets measured at fair value through profit or loss.After the initial recognition this kind of financial asset is subsequently measured at its fair value and

the gains or losses (including interest and dividend income) generated are recorded into the current

profit or loss unless the financial asset is part of the hedging relationship.However for non-trading equity instrument investment the Group irrevocably designates it as a

financial asset measured at fair value through other comprehensive income at the time of initial

recognition. The designation is made on a single investment basis and the relevant investments meet

the definition of an equity instrument from issuer's perspective.After the initial recognition this kind of financial assets are subsequently measured at fair value.Satisfied dividend income is included in the profit or loss other gains or losses and changes in fair value

are included in other comprehensive income. When derecognized the accumulated gains or losses

previously recorded in other comprehensive income are transferred out and recorded in retained

earnings.The business model of managing financial assets refers to how the group manages financial assets to

generate cash flows. The business model determines whether the cash flow from the financial assets

under management of the Group is derived from the receipt of contractual cash flows the sale of

financial assets or a combination of both. The Group determines its business model for managing

financial assets on the basis of objective facts and the specific business objectives for the management

of financial assets determined by key management personnel.The Group assesses the contractual cash flow characteristics of financial assets to determine whether

the contractual cash flows generated by the relevant financial assets on specified dates are solely

payments of principal and interest on the principal amount outstanding. Principal refers to the fair

value of financial assets at initial recognition. Interest includes consideration for the time value of

money the credit risk associated with the amount of principal outstanding over a given period and

other basic lending risks and costs as well as a profit margin. In addition the Group assesses

contractual terms that may cause a change in the time distribution or amount of the contractual cash

flows of financial assets to determine whether they meet the requirements of the above contractual

cash flow characteristics.Only when the Group changes the business model of managing financial assets all affected related

financial assets shall be reclassified on the first day of the first reporting period after the change of the

business model otherwise the financial assets shall not be reclassified after the initial recognition.Financial assets are measured at fair value at the time of initial recognition. For financial assets

measured at fair value through profit or loss relevant transaction costs are directly recorded into

current profit or loss; for other classes of financial assets the relevant transaction costs are included in

the initial recognition amount. For accounts receivable arising from the sale of products or provision

of services which do not contain or do not take into account the material financing component the

Group is entitled to collect the consideration amount as expected as the initial recognition amount.

（3）Classification and measurement of financial liabilities

At the time of initial recognition the financial liabilities of the Group are classified as: financial

liabilities measured at fair value through current profit or loss and financial liabilities measured at

amortized cost. For financial liabilities that are not classified as measured at fair value through profit or

loss relevant transaction costs are included in their initial recognized amounts.Financial liabilities measured at fair value through profit or loss

Financial liabilities measured at fair value through profit or loss include trading financial liabilities and

financial liabilities designated at the time of initial recognition as measured at fair value through profit

or loss. For such financial liabilities the subsequent measurement shall be made according to the fair

value and the gains or losses caused by changes in the fair value as well as the dividends and interest

expenses related to such financial liabilities shall be recorded into current profit or loss.Financial liabilities measured at amortized cost

For other financial liabilities the effective interest rate method shall be adopted and the subsequent

measurement shall be made at the amortized cost and the gains or losses arising from derecognition or

amortization shall be recorded into current profit or loss.The distinction between financial liabilities and equity instruments

Financial liabilities refer to liabilities that meet one of the following conditions:

① A contractual obligation to deliver cash or other financial assets to other parties.② a contractual obligation to exchange financial assets or financial liabilities with another party under

potentially adverse conditions.③ Non-derivative instrument contracts that will be settled with or available to the firm's own equity

instruments in the future under which the firm will deliver a variable number of its own equity

instruments.④ a derivative contract in which the firm's own equity instruments are to be settled or used in the

future except for a derivative contract in which a fixed number of its own equity instruments are to be

exchanged for a fixed amount of cash or other financial assets.An equity instrument is a contract that certifies ownership of the remaining interest in an enterprise's

assets after all liabilities have been deducted.If the Group cannot unconditionally avoid fulfilling a contractual obligation by delivering cash or other

financial assets such contractual obligation meets the definition of a financial liability.If a financial instrument is to be settled with or available to the Group's own equity instrument

consideration needs to be given to whether the Group's own equity instrument used to settle the

instrument is to be used as a substitute for cash or other financial assets or to give the holder of the

instrument the remaining interest in the Issuer's assets after deduction of all liabilities. If the former

the instrument is a financial liability of the group; If it is the latter the instrument is an equity

instrument of the Group.

（4）Fair value of financial instrumentsFor the determination of fair value of financial assets and financial liabilities see Note V. 37 “Fairvalue measurement”.

（5）Impairment of financial assets

On the basis of expected credit losses the Group conducts impairment accounting treatment for the

following items and confirms the loss provision:

? Financial assets measured at amortized cost;

? Receivables and creditor's rights investments measured at fair value and accounted for in other

comprehensive income;

? Contract assets as defined in the Accounting Standards for Business Enterprises No. 14 - Revenue;

? Lease receivables;

Financial guarantee contract (measured at fair value and its changes included in the current profit and

loss except the financial asset transfer does not meet the conditions for termination of recognition or

continues to involve the transferred financial asset).Measurement of expected credit losses

The term "expected credit loss" refers to the weighted average of the credit loss of a financial

instrument weighted by the risk of default. Credit loss refers to the difference between all contractual

cash flows receivable under the contract and all cash flows expected to be collected by the Group

discounted at the original effective interest rate that is the present value of all cash shortages.The Group calculates the probabilistic weighted amount of the present value of the difference between

the cash flows receivable under the Contract and the cash flows expected to be received and recognizes

the expected credit loss taking into account reasonable and evidential information concerning past

events current conditions and Itemions of future economic conditions and weighting the risk of

default.he Group measures the expected credit losses of financial instruments at different stages. If the credit

risk of the financial instrument has not increased significantly since the initial recognition the Group

shall measure the loss provision in accordance with the expected credit loss in the next 12 months in

the first stage;If the credit risk of a financial instrument has increased significantly since the initial

recognition but no credit impairment has occurred it is in the second stage and the Group measures

the loss provision according to the expected credit loss of the entire life period of the instrument; If

credit impairment has occurred to a financial instrument since its initial recognition it is in the third

stage and the Group shall measure the loss provision according to the expected credit loss of the entire

life period of the instrument.For financial instruments with low credit risk at the balance sheet date the Group assumes that the

credit risk has not increased significantly since the initial recognition and measures the loss provision in

accordance with the expected credit loss for the next 12 months.The term "expected credit loss over the entire expected life of a financial instrument" refers to the

expected credit loss resulting from all possible events of default during the entire expected life of a

financial instrument. The expected credit loss within the next 12 months refers to the expected credit

loss caused by the default event of the financial instrument that may occur within 12 months after the

date of the balance sheet (or the expected duration of the financial instrument if the expected duration

of the financial instrument is less than 12 months) and is part of the expected credit loss over the

entire maturity period.When measuring expected credit losses the Group shall take into account the longest contract period

(including the option to renew the contract) for which the enterprise is exposed to credit risk.The Group calculates interest income on the basis of the book balance before impairment provisions

and the effective interest rate for financial instruments in stage I and stage II and with lower credit risk.For financial instruments in the third stage the interest income is calculated on the basis of the

amortized cost of the book balance less the impairment provision and the effective interest rate.For notes receivable accounts receivable and contract assets regardless of whether there is a material

financing component the Group always measures its loss provision in accordance with the amount

equivalent to the expected credit loss within the whole duration period.When a single financial asset cannot assess the information of expected credit loss at a reasonable cost

the Group divides the notes receivable and accounts receivable into portfolios according to the credit

risk characteristics calculates the expected credit loss on the basis of the portfolios and determines the

portfolios based on the following:

A. Notes receivable

? Notes receivable portfolio 1: banker's acceptance

? Notes receivable portfolio 2: commercial acceptance bills

B. Receivables

? Accounts receivable portfolio 1: related parties receivable

? Accounts Receivable Portfolio 2: Receivable from property sales

? Accounts receivable portfolio 3: receivable from other customers

C. Contract assets

? Contract Portfolio 1: Product Sales

? Contract Portfolio 2: Works Construction

For the notes receivable and contract assets divided into portfolios the Group calculates the expected

credit loss through default risk exposure and the expected credit loss rate over the entire duration by

referring to the historical credit loss experience combining the current situation and the forecast of the

future economic situation.For the receivables divided into portfolios the Group refers to the historical credit loss experience and

combines the current situation with the forecast of the future economic situation to compile a

comparison table between the age of receivables/overdue days and the expected credit loss rate of the

entire duration period to calculate the expected credit loss.Other receivables

The Group divides other receivables into several portfolios according to the credit risk characteristics

and calculates the expected credit loss on the basis of the portfolio. The basis for determining the

portfolio is as follows:

? Other Receivables Portfolio 1: Receivables from government agencies

? Other Receivables Portfolio 2: Other receivables from employee’s petty cash

? Other receivables portfolio 3: Other receivables from the collecting and paying on behalf

? Other receivables portfolio 4: Other receivables from other customers

? Other receivables portfolio 5: Receivables from related parties

For other receivables divided into portfolios the Group calculates the expected credit loss by default

risk exposure and the expected credit loss rate over the next 12 months or the entire duration.Debt investment and Other debt investment

For debt investment and other debt investment the Group calculates the expected credit loss based on

the default risk exposure and the expected credit loss rate within the next 12 months or the entire

duration according to the nature of the investment and the various types of counterparties and risk

exposures.An assessment of a significant increase in credit risk

By comparing the risk of default of financial instruments on the balance sheet date with the risk of

default on the initial recognition date the Group determines the relative change of default risk within

the expected duration of financial instruments so as to evaluate whether the credit risk of financial

instruments has significantly increased since the initial recognition.In determining whether credit risk has increased significantly since the initial recognition the Group

considers reasonable and informed information including forward-looking information that can be

obtained without unnecessary additional cost or effort. Information considered by the Group includes:

? The debtor fails to pay the principal and interest as due under the contract;

? A material deterioration if any of the external or internal credit rating of the financial instrument

that has occurred or is expected;

? A serious deterioration of the debtor's business results occurred or is expected;

? A change in the existing or anticipated technological market economic or legal environment

which will have a material adverse effect on the debtor's ability to repay the Group.? According to the nature of financial instruments the Group evaluates whether credit risk increases

significantly on the basis of individual financial instruments or a combination of financial

instruments. When assessing on the basis of a portfolio of financial instruments the Group may

classify financial instruments based on common credit risk characteristics such as overdue

information and credit risk rating.If overdue for more than 30 days the Group determines that the credit risk of the financial instrument

has increased significantly.The Group believes that the financial assets are in default under the following circumstances:

? The Borrower is unlikely to pay its arrears to the Group in full and this assessment does not take

into account any recourse actions taken by the Group such as liquidating the collateral (if held);

? Financial assets are more than 90 days overdue.A financial asset whose credit has been impaired

On the balance sheet date the Group evaluates whether credit impairment has occurred in financial

assets measured at amortized cost and debt investments measured at fair value and whose changes are

included in other comprehensive income. When one or more events which have an adverse effect on

the expected future cash flow of a financial asset occur the financial asset becomes a financial asset

with credit impairment. Evidence of credit impairment of financial assets includes the following

observable information:

? Major financial difficulties occur to the issuer or the debtor;

? A breach of contract by the debtor such as a default or late payment of interest or principal;

? The Group for economic or contractual considerations relating to the debtor's financial difficulties

gives concessions that the debtor would not have made under any other circumstances;

? The debtor is likely to go bankrupt or undergo other financial restructuring;

? The financial difficulties of the issuer or debtor result in the disappearance of an active market for

the financial asset.Presentation of expected credit loss provisions

In order to reflect the change of the credit risk of financial instruments since the initial recognition the

Group re-measures the expected credit loss on each balance sheet date and the increase or rolleback

amount of the loss provision thus formed shall be recorded into the current profit and loss as an

impairment loss or profit. For a financial asset measured at amortized cost the loss provision shall

offset the carrying value of the financial asset as stated in the balance sheet; For the debt investment

measured at fair value and its changes included in other comprehensive income the Group recognizes

its loss provision in other comprehensive income and does not deduct the book value of the financial

asset.Written-off

If the Group no longer reasonably expects that the contractual cash flow of a financial asset can be

recovered in whole or in part the carrying balance of the financial asset shall be directly written down.Such writedowns constitute termination recognition of the relevant financial assets. This usually occurs

when the Group determines that the debtor does not have assets or sources of income that generate

sufficient cash flow to repay the amount to be written down. However in accordance with the Group's

procedures for recovering amounts due the financial assets that have been written down may still be

affected by the execution activities.If a financial asset that has been written down is recovered later it shall be carried back as an

impairment loss and recorded in the profit and loss of the current period.

（6）Transfer of financial assets

Transfer of financial assets is the transfer or delivery of financial assets to another party (the transferee)

other than the issuer of financial assets.A financial asset is derecognised if the Group transfers substantially all the risks and rewards of

ownership of the financial asset to the transferee. A financial asset is not derecognised if the Group

retains substantially all the risks and rewards of ownership of the financial asset to the transferee.The Group neither transfers nor retains substantially all the risks and rewards of ownership of the

financial asset and the accounting treatment is shown as following: if the Group has forgone control

over the financial asset the financial assets is derecognized and new assets and liabilities are recognized.If the Group retains control over the financial asset the financial asset is recognised to the extent of its

continuing involvement in the transferred financial asset and an associated liability is recognised.

（7）Offset of financial assets and financial liabilities

Where the Group has the legal right to set off the recognized financial asset and financial liability and

is currently able to enforce such legal right and the Group plans to settle the financial asset on a net

basis or simultaneously realize the financial asset and pay off the financial liability the financial asset

and financial liability shall be shown in the balance sheet with the offset amount. In addition financial

assets and financial liabilities shall be separately presented in the balance sheet and shall not be set off

against each other.11. Notes Receivable

Please refer to Notes V.10 Financial Instrument (5) Impairment of Financial Asset.12. Accounts Receivable

Please refer to Notes V.10 Financial Instrument (5) Impairment of Financial Asset.13. Accounts receivable financing

14、Other receivablesDetermination method and accounting treatment method of expected credit loss of other receivables

Please refer to Note V 10. financial instruments (5) Impairment of financial assets

15、Inventories

（1）Classification

The Group's inventory is classified by real estate development and non-real estate development.Inventory is mainly real estate development projects including development costs and development

products. Development cost include the development costs of development products to be developed

and development products under construction. Development products include completed development

products and development products intended for sell but temporarily leased. Non-real estate

development projects include raw materials finished goods and engineering construction.

（2）Mesurement method of cost of inventories

The group’s inventories are measured at actual cost when acquired. The actual cost of developing a

product includes land transfer fee infrastructure expenditure construction and installation project

expenditure borrowing expenses incurred before the completion of the development project and other

related expenses in the development process.。When a product is developed and shipped the actualcost is determined by specific identification method.Raw materials and finished goods are calculated using weighted average method.

（3）Basis for determining the net realisable value and method for provision for obsolete inventories

Net realisable value is the estimated selling price in the ordinary course of business less the estimated

costs of completion and the estimated costs necessary to make the sale and relevant taxes. The net

realisable value is measured based on the verified evidences and considerations for the purpose of

holding inventories and the effect of post balance sheet events.Any excess of the cost over the net realisable value of of inventories is recognised as a provision for

obsolete inventories and is recognised in profit or loss. The Group usually recognises provision for

decline in value of inventories by a single inventory item. If the factors caused the value of inventory

previously written-down have disappeared the provision for decline in value of inventories previously

made is reversed.

（4）Inventory count system

The Group maintains a perpetual inventory system

（5）Amortization methods of low-value consumables and packaging materials

Low-value consumables are charged to profit or loss when they are used.16. Contractual assets

17．Contract costs

Contract costs include incremental costs incurred to obtain the contract and contract performance

costs.Incremental costs incurred to obtain a contract are costs (such as sales commissions etc.) that the

Group would not have incurred without the contract.If the cost is expected to be recovered the Group

will recognize it as an asset as the contract acquisition cost.Other expenses incurred by the Group for

the acquisition of contracts other than the incremental costs expected to be recovered are recorded

into the profit and loss of the current period when incurred.If the cost incurred for the performance of the contract does not fall within the scope of accounting

standards for inventories and other enterprises and meets the following conditions at the same time the

Group will recognize it as an asset as the contract performance cost:

① The costs are directly related to a current or prospective contract and include direct labor direct

materials overhead (or similar) costs that are expressly borne by the customer and other costs incurred

solely in connection with the contract;

② This cost increases the Group's future resources for fulfilling its performance obligations;

③ The cost is expected to be recovered.Assets with contract acquisition cost recognition and assets with contract performance cost recognition

(hereinafter referred to as "assets related to contract cost") shall be amortized on the same basis as

income recognition of goods or services related to such assets and shall be recorded into current profit

and loss. If the amortization period does not exceed one year it will be recorded in the current profit

and loss at the time of occurrence.When the book value of the assets related to the contract cost is higher than the difference between the

following two items the Group shall make provision for impairment of the excess part and recognize it

as impairment loss of the assets:

① the remaining consideration that the Group is expected to obtain as a result of the transfer of the

goods or services related to the asset;

② Estimate the costs to be incurred for the transfer of the relevant goods or services.The contract performance cost recognized as an asset shall be shown in the "Inventory" item with an

amortization period of no more than one year or one normal operating cycle at the time of initial

recognition while the amortization period exceeding one year or one normal operating cycle at the time

of initial recognition shall be shown in the item of "Other Non-current Assets".The contract acquisition cost recognized as an asset shall be shown in the item of "Other Current

Assets" with an amortization period of less than one year or one normal operating cycle at the time of

initial recognition and shall be shown in the item of "Other Non-current Assets" with an amortization

period of more than one year or one normal operating cycle at the time of initial recognition.18．Assets held for sale

19．Debt investment

20．Other debt investment

21、Long-term accounts receivable22、Long-term equity investmentsLong-term equity investments include equity investments in subsidiaries and equity investments in joint

ventures and associates. An associate is an enterprise over which the Group has significant influence.

（1）Determination of initial investment cost

The initial cost of a long-term equity investment acquired through a business combination involving

enterprises under common control is the Group’s share of the carrying amount of the subsidiary’s

equity in the consolidated financial statements of the ultimate controlling party at the combination date.For a long-term equity investment obtained through a business combination not involving enterprises

under common control the initial cost is the combination cost.A long-term equity investment acquired other than through a business combination: A long-term equity

investment acquired other than through a business combination is initially recognised at the amount of

cash paid if the Group acquires the investment by cash or at the fair value of the equity securities

issued if an investment is acquired by issuing equity securities.

（2）Subsequent measurement and recognition of profit or loss

Long-term equity investments in subsidiaries are accounted for using the cost method. An investment

in a joint venture or an associate is accounted for using the equity method for subsequent

measurement.For a long-term equity investment which is accounted for using the cost method Except for cash

dividends or profit distributions declared but not yet distributed that have been included in the price or

consideration paid in obtaining the investments the Group recognises its share of the cash dividends

or profit distributions declared by the investee as investment income for the current period.For a long-term equity investment which is accounted for using the equity method where the initial

cost of a long-term equity investment exceeds the Group’s interest in the fair value of the investee’s

identifiable net assets at the date of acquisition the investment is initially recognised at cost. Where the

initial investment cost is less than the Group’s interest in the fair value of the investee’s identifiable net

assets at the date of acquisition the investment is initially recognised at the investor’s share of the fair

value of the investee’s identifiable net assets and the difference is recognised in profit or loss.Under the equity method the Group recognises its share of the investee’s profit or loss and other

comprehensive income as investment income or losses and other comprehensive income respectively

and adjusts the carrying amount of the investment accordingly. Once the investee declares any cash

dividends or profit distributions the carrying amount of the investment is reduced by the amount

attributable to the Group. Changes in the Group’s share of the investee’s owners’ equity other than

those arising from the investee’s net profit or loss other comprehensive income or profit distribution

(referred to as “other changes in owners’ equity”) is recognised directly in the Group’s equity and the

carrying amount of the investment is adjusted accordingly. In calculating its share of the investee’s net

profits or losses other comprehensive income and other changes in owners’ equity the Group

recognises investment income and other comprehensive income after making appropriate adjustments

to align the accounting policies or accounting periods with those of the Group based on the fair value

of the investee’s identifiable net assets at the date of acquisition.When the Group becomes capable of exercising joint control or significant influence (but not control)

over an investee due to additional investment or other reasons the Group uses the fair value of the

previously-held equity investment together with additional investment cost as the initial investment

cost under the equity method. The difference between the fair value and carrying amount of the

previously-held equity investment and the accumulated changes in fair value included in other

comprehensive income shall be transferred to profit or loss for the current period upon

commencement of the equity method.When the Group can no longer exercise control over an investee due to partial disposal of the equity

investment or other reasons and the remaining equity after disposal can exercise joint control of or

significant influence over an investee the remaining equity is adjusted as using equity method from

acquisition. When the remaining equity can no longer exercise joint control of or significant influence

over an investee the remaining equity investment shall be accounted for using Accounting Standard for

Business Enterprises No. 22-Recognition and Measurement of Financial Instruments and the

difference between the fair value and the carrying amount of the remaining equity investment shall be

charged to profit or loss for the current period at the date of loss of control.When the Group can no longer exercise control over an investee due to new capital injection by other

investors and the Group can exercise joint control of or significant influence over an investee the

Group recognizes its share of the investee’s new added net assets using new shareholding percentage.The difference between its new share of the investee’s new added net assets and its decreased

shareholding percentage of the original investment is recognized in profit or loss. And the Group

adjusts to the equity method using the new shareholding percentage as if it uses the equity method

since it obtains the investment.Unrealised profits and losses resulting from transactions between the Group and its associates or joint

ventures are eliminated to the extent of the Group’s interest in the associates or joint ventures.Unrealised losses resulting from transactions between the Group and its associates or joint ventures are

eliminated in the same way as unrealised gains but only to the extent that there is no impairment.

（3）Criteria for determining the existence of joint control or significant influence over an investee

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.When assessing whether the Group can exercise joint control over an investee the Group first

considers whether no single participant party is in a position to control the investee’s related activities

unilaterally and then considers whether strategic decisions relating to the investee’s related activities

require the unanimous consent of all participant parties that sharing of control. All the parties or a

group of the parties control the arrangement collectively when they must act together to direct the

relevant activities. When more than one combination of the parties can control an arrangement

collectively joint control does not exist. A party that holds only protective rights does not have joint

control of the arrangement.Significant influence is the power to participate in the financial and operating policy decisions of an

investee but does not have control or joint control over those policies. When determining whether the

Group can exercise significant influence over an investee the effect of potential voting rights (for

example warrants share options and convertible bonds) held by the Group or other parties that are

currently exercisable or convertible shall be considered.When the Group directly or indirectly through subsidiaries owns 20% of the investee (including 20%)

or more but less than 50% of the voting shares it has significant influence over the investee unless

there is clear evidence to show that in this case the Group cannot participate in the production and

business decisions of the investee and cannot form a significant influence. When the Group owns less

than 20% of the voting shares generally it does not have significant influence over the investee unless

there is clear evidence to show that in this case the Group can participate in the production and

business decisions of the investee so as to form a significant influence.

（4）Method of impairment testing and impairment provision

For investments in subsidiaries associates and joint ventures refer to Note V. 31 for the Group’s

method of asset impairment.23. Investment property

Investment property measurement method

Cost method

Depreciation or amortization method

Investment properties are properties held either to earn rental income or for capital appreciation or for

both. The Group’s investment properties include leased houses leased buildings leased land use rights.In addition for a vacant building held by the company for operating lease if the board of directors (or

a similar institution) makes a written resolution expressly indicating that it is used for operating lease

and the intention of holding does not change in the short term it is also considered as Investment

property.Investment properties are initially measured at acquisition cost and depreciated or amortized using the

same policy as that for fixed assets or intangible assets.For the impairment of the investment properties accounted for using the cost model refer to Note

V.31 Impairment of long-term asset.The balance of the disposal income from the sale transfer scrapping or damage of the investment real

estate after deducting its book value and relevant taxes and fees shall be recorded into the current profit

and loss.24. Fixed assets

（1）Recognition of fixed assets

Fixed assets represent the tangible assets held by the Group for use in production of goods use in

supply of services rental or for administrative purposes with useful lives over one accounting year.Fixed assets are only recognised when its related economic benefits are likely to flow to the Group and

its cost can be reliably measured.Fixed asset are initially measured at cost.

（2）Depreciation of fixed assets

Estimated

useful life

Depreciation Residual value Depreciation

Class

Method rate % rate %（years）

straight-line

Plant and buildings 30 5 3.17%

depreciation

Motor vehicles straight-line

6 5 15.83%

depreciation

Electronic equipment straight-line

and others 5 5 19.00%

depreciation

The cost of a fixed asset is depreciated using the straight-line method since the state of intended use

unless the fixed asset is classified as held for sale. Not considering impairment provision the estimated

useful lives residual value rates and depreciation rates of each class of fixed assets are as table above.For impaired fixed assets cumulative amount of impairment provision is deducted in determining the

depreciation rate.

（3）Recognition measurement and depreciation of fixed assets acquired under finance leases

Fixed assets under finance leases are recognised if they meet one or more of the following criteria: ①

The ownership of leased assets is transferred to the Company by the end of the lease term. ②The

Company has the option to purchase the asset at a price that is expected to be sufficiently lower than

the fair value at the date of the option becomes exercisable for it to be reasonably certain at the

inception of the lease that the option will be exercised. ③Even if the ownership of assets is not

transferred the lease term covers the major part of the useful life of the asset. ④At the inception of

lease the present value of minimum lease payments amount to substantially all of the fair value of

leased asset. ⑤Leased assets are of a specialized nature that only the Company can use them without

major modifications.An asset acquired under a finance lease is measured at an amount equal to the lower of its fair value

and the present value of the minimum lease payments each determined at the inception of the lease.Long-term payable is recorded at an amount equal to the sum of all future minimum lease payments.The difference between the carrying amount of the leased assets and the minimum lease payments is

accounted for as unrecognised finance charges. Initial direct costs attributable to a finance lease

incurred during the process of lease negotiation and the signing of the lease agreement including

service charges attorney's fees travelling expenses and stamp duty that are incurred by the Company

are added to the carrying amount of the leased asset. Unrecognised finance charges are recognised as

finance charge for the period using the effective interest method over the lease term.Depreciation is accounted for in accordance with the accounting policies of fixed assets. If there is

reasonable certainty that the Company will obtain ownership of a leased asset at the end of the lease

term the leased asset is depreciated over its estimated useful life. Otherwise the leased asset is

depreciated over the shorter of the lease term and its estimated useful life.

（4）Impairment of the fixed assets and other

For the impairment of the fixed assets please refer to NoteV.31.

（5）Useful lives estimated residual values and depreciation methods are reviewed at least at each

year-end.The Group adjusts the useful lives of fixed assets if their expected useful lives are different with the

original estimates and adjusts the estimated net residual values if they are different from the original

estimates.

（6）Overhaul cost

Overhaul costs occurred in regular inspection are recognized in the cost if there is undoubted evidence

to confirm that this part meets the recognition criteria of fixed assets otherwise the overhaul costs are

recognized in profit or loss for the current period. Depreciation is provided during the period of

regular overhaul.25、Construction in progressConstruction in progress is recognized based on the actual construction cost including all expenditures

incurred for construction Items capitalised borrowing costs and any other costs directly attributable to

bringing the asset to working condition for its intended use.Construction in progress is transferred to fixed asset when it is ready for its intended use.For the impairment of construction in progress please refer to Note V.31 Impairment of assets.26. Borrowing costs

（1）Capitalisation criteria

Borrowing costs that are directly attributable to the acquisition construction or production of a

qualifying asset shall be capitalised as part of the cost of that asset. Other borrowing costs are

expensed in profit or loss as incurred. The capitalisation of borrowing costs shall commence only when

the following criteria are met:

①capital expenditures have been incurred including expenditures that have resulted in payment of

cash transfer of other assets or the assumption of interest-bearing liabilities;

②borrowing costs have been incurred;

③the activities that are necessary to prepare the asset for its intended use or sale have commenced.

（2）Capitalisation period

The capitalisation of borrowing costs ceases when the asset under acquisition or construction becomes

ready for its intended use the borrowing costs incurred thereafter are recognised in profit or loss for

the current period.Capitalisation of borrowing costs is suspended during periods in which the acquisition or construction

of a fixed asset is interrupted abnormally and the interruption lasts for more than 3 months until the

acquisition or construction is resumed.

（3）Capitalisation rate of borrowing costs and calculation basis of capitalised amount

For interest expense actually incurred on specific borrowings the eligible capitalised amount is the net

amount of the borrowing costs after deducting any investment income earned before some or all of

the funds are used for expenditures on the qualifying asset. To the extent that the Group borrows

funds generally and uses them for the purpose of obtaining a qualifying asset the Group shall

determine the amount of borrowing costs eligible for capitalisation by applying a capitalisation rate to

the expenditures on that asset the capitalisation rate shall be the weighted average of the borrowing

costs applicable to the borrowings of the Group that are outstanding during the period other than

borrowings specifically for the purpose of obtaining a qualifying asset.In the capitalisation period exchange differences of specific borrowings in foreign currency shall be

capitalised; exchange differences of general borrowings in foreign currency is recognised in profit or

loss for the current period.27. Biological assets

28. Oil and gas assets

29. Use rights assets

30. Intangible assets

（1）Valuation Useful life and Impairment

Intangible assets include software land use right and patent rights etc.Intangible assets are stated at actual cost upon acquisition and the useful economic lives are determined

at the point of acquisition. When the useful life is finite amortisation method shall reflect the pattern

in which the asset’s economic benefits are expected to be realised. If the pattern cannot be determined

reliably the straight-line method shall be used. An intangible asset with an indefinite useful life shall not

be amortised.The Group shall review the useful life and amortisation method of an intangible asset with a finite

useful life at least at each year end. Changes of useful life and amortisation method shall be accounted

for as a change in accounting estimate.An intangible asset shall be derecognised in profit or loss when it is not expected to generate future

economic benefits.For the impairment of intangible assets please refer to Note V.31 Impairment of Assets.

（2）Accounting policy for internal research and development expenditure

31. Impairment of assets

The impairment of long-term equity investments in subsidiaries associates and joint ventures

investment properties measured using a cost model fixed assets construction in progress productive

biological assets measured using a cost model intangible assets goodwill proven oil and gas mining

rights and wells and related facilities etc. (Excluding inventories investment property measured using a

fair value model deferred tax assets and financial assets) is determined as follows:

At each balance sheet date the Group determines whether there is any indication of impairment. If

any indication exists the recoverable amount of the asset is estimated. In addition the Group estimates

the recoverable amounts of goodwill intangible assets with indefinite useful lives and intangible assets

not ready for use at each year-end irrespective of whether there is any indication of impairment.The recoverable amount of an asset is the higher of its fair value less costs to sell and its present value

of expected future cash flows. The recoverable amount is estimated for each individual asset. If it is

not possible to estimate the recoverable amount of each individual asset the Group determines the

recoverable amount for the asset group to which the asset belongs. An asset group is the smallest

identifiable group of assets that generates cash inflows that are largely independent of the cash inflows

from other assets or asset groups.An impairment loss is recognised in profit or loss when the recoverable amount of an asset is less than

its carrying amount. A provision for impairment of the asset is recognised accordingly.For goodwill impairment test the carrying amount of goodwill arising from a business combination is

allocated reasonably to the relevant asset group since the acquisition date. If the carrying amount of

goodwill is unable to be allocated to asset group the carrying amount of goodwill will be allocated to

asset portfolio. Asset group or portfolio of asset group is asset group or portfolio of asset group which

can be benefit from synergies of a business combination and is not greater than the reportable segment

of the Group.In impairment testing if impairment indication exists in asset group or portfolio of asset group

containing allocated goodwill impairment test is first conducted for asset group or portfolio of asset

group that does not contain goodwill and corresponding recoverable amount is estimated and any

impairment loss is recognized. Then impairment test is conducted for asset group or portfolio of

asset group containing goodwill by comparing its carrying amount and its recoverable amount. If the

recoverable amount is less than the carrying amount impairment loss of goodwill is recognized.Once an impairment loss is recognised it is not reversed in a subsequent period.32. Long-term deferred expenses

Long-term deferred expenses are recorded at the actual cost and amortized using a straight-line

method within the benefit period. For long-term deferred expense that cannot bring benefit in future

period the Group recognized its amortised cost in profit or loss for the current period.33. Contractual liabilities

34. Employee benefits

（1）Scope of employee benefits

Employee benefits refer to all forms of consideration or compensation given by the Group in exchange

for service rendered by employees or for the termination of employment relationship. Employee

benefits include short-term employee benefits post-employment benefits termination benefits and

other long-term employee benefits. Benefits provided to the Group’s spouse children dependents

family members of deceased employees or other beneficiaries are also part of the employee benefits.According to liquidity employee benefits are presented as “employee benefits payable” and “long-termemployee benefits payable” on the balance sheet.In the current period the Group has accrued for the actual wages bonuses medical insurance for

employees based on standard rate work injury insurance and maternity insurance and other social

insurance and housing fund incurred and these are recognised as liabilities and corresponding costs in

the profit or loss. If these liabilities are not expected to be fully paid 12 months after the end of the

reporting period in which employee renders the service to the Group and if the financial impact is

significant these liabilities shall be discounted using the net present value method.

（2）Post-employment benefits

Post-employment benefit plan includes defined contribution plans and defined benefit plans. Defined

contribution plans are post-employment benefit plans under which an enterprise pays fixed

contributions into a separate fund and will have no future obligations to pay the contributions. Defined

benefit plans are post-employment benefit plans other than defined contribution plans.Defined contribution plans

Defined contribution plans include primary endowment insurance unemployment insurance and

corporate pension plan etc.Besides basic pension insurance the Group establishes corporate pension plans in accordance with the

related policies of corporate pension regulations. Employees can join the pension plan voluntarily. The

Group has no other significant commitment of employees’ social security.The Group shall recognise 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 the

profit or loss for the current period or the cost of a relevant asset.Defined benefit plans

For a defined benefit plan an actuarial valuation is performed by an independent actuary at the annual

balance sheet date to determine the cost of providing benefits using the expected accrued benefit unit

method. The employee compensation cost caused by the benefit plan of the Group includes the

following components:

① Service cost including current service cost past service cost and settlement profit or loss. Including

the current service cost refers to the increase in the present value of the defined benefit plan obligation

caused by the current provision of services by employees; The past service cost refers to the increase

or decrease in the present value of the defined benefit plan obligations related to the employee services

of the previous period as a result of the modification of the defined benefit plan.② Set the net interest on the net liabilities or net assets of the benefit plan including the interest

income on the plan assets the interest expense on the defined benefit plan obligations and the interest

on the impact of the asset cap.③ The changes caused by the remeasurement of the net liabilities or net assets of the benefit plan.Unless other accounting standards require or allow the cost of employee benefits to be included in the

cost of assets the Group will include items ① and ② above in the current profit and loss; Item ③

is included in other comprehensive income and will not be turned back to profit and loss in subsequent

accounting periods. When the originally defined benefit plan is terminated the part originally included

in other comprehensive income within the scope of equity is carried forward to undistributed profit.（3）Termination benefits

The Group provides for termination benefits to the employees and shall recognise an employee

benefits liability for termination benefits with a corresponding charge to the profit or loss for the

current period at the earlier of the following dates: When the Group cannot unilaterally withdraw the

offer of the termination benefits because of an employment termination plan or a redundancy

proposal; or when the Group recognises the costs or expenses relating to a restructuring that involves

the payment of the termination benefits.For employees who implement the internal retirement plan the economic compensation before the

official retirement date belongs to dismiss welfare. During the normal retirement date when the

employees stop providing services the salary and social insurance premium to be paid by the employees

who retire within the Group shall be included in the profit and loss of the current period in a lump

sum. Economic compensation after the official retirement date (such as the normal pension) shall be

treated as after-service benefits.

（4）Other long-term employee benefits

Other long-term employee benefits provided by the Group to the employees satisfied the conditions

for classifying as a defined contribution plan; those benefits shall be accounted for in accordance with

the above requirements relating to defined contribution plan. When the benefits satisfied a defined

benefit plan it shall be accounted for in accordance with the above requirements relating to defined

benefit plan but the movement of net liabilities or assets in re-measurement of defined defined benefit

plan shall be recorded in profit or loss for the current period or cost of relevant assets.35. Lease liabilities

36. Provisions

A provision is recognised for an obligation related to a contingency if all the following conditions are

satisfied:

(1) the Group has a present obligation;

(2) it is probable that an outflow of economic benefits will be required to settle the obligation; and

(3) the amount of the obligation can be estimated reliably.

A provision is initially measured at the best estimate of the expenditure required to settle the related

present obligation. Factors pertaining to a contingency such as the risks uncertainties and time value of

money are taken into account as a whole in reaching the best estimate.Where the effect of the time

value of money is material provisions are determined by discounting the expected future cash flows.The Group reviews the carrying amount of a provision at the balance sheet date and adjusts the

carrying amount to the current best estimate.If all or part of the expenditure necessary for settling the provision is expected to be compensated by a

third party the amount of compensation is separately recognized as an asset when it is basically certain

to be received. The recognized compensation amount shall not exceed the carrying amount of the

provision.37. Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly

transaction between market participants at the measurement date.The Group measures related assets or liabilities at fair value assuming the assets or liabilities are

exchanged in an orderly transaction in the principal market; in the absence of a principal market

assuming the assets or liabilities are exchanged in an orderly transaction in the most advantageous

market. Principal market (or the most advantageous market) is the market that the Group can normally

enter into a transaction on measurement date. The Group adopts the presumptions that would be used

by market participants in achieving the maximized economic value of the assets or liabilities.For financial assets or financial liabilities with active markets the Group uses the quoted prices in active

markets as their fair value. Otherwise the Group uses valuation technique to determine their fair value.Fair value measurement of a non-financial asset takes into account market participants’ ability to

generate economic benefits using the asset in its best way or by selling it to another market participant

that would best use the asset.The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient

data are available to measure fair value maximizing the use of relevant observable inputs and using

unobservable inputs only if the observable inputs aren’t available or impractical.Fair value level for assets and liabilities measured or disclosed at fair value in the financial statements

are determined according to the significant lowest level input to the entire measurement: Level 1 inputs

are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Group can

access at the measurement date; Level 2 inputs are inputs other than quoted prices included within

Level 1 that are observable for the assets or liabilities either directly or indirectly; Level 3 inputs are

unobservable inputs for the assets or liabilities.At the balance sheet date the Group revalues assets and liabilities being measured at fair value

continuously in the financial statements to determine whether to change the levels of fair value

measurement.38．Share-based payment

39. Preferred stock perpetual debt and other financial instruments

40. Revenue

The accounting policy used for revenue recognition and measurment

(1) General principles

The Group has fulfilled its contractual obligation to recognize revenue when the customer acquires

control of the relevant goods or services.If the contract contains two or more performance obligations the Group shall on the commencement

date of the contract allocate the transaction price to each single performance obligation according to

the relative proportion of the individual selling price of the commodity or service committed by each

single performance obligation and measure the income according to the transaction price allocated to

each single performance obligation.If one of the following conditions is satisfied the Group shall perform its obligations within a certain

period of time; otherwise it belongs to the performance obligation at a certain point:

① The Client obtains and consumes the economic benefits brought by the Group's performance at

the same time of the Group's performance.② The customer can control the goods under construction during the performance of the Group.③ The commodities produced by the Group during the performance of the Contract have

irreplaceable purposes and the Group has the right to collect payment for the accumulated part of the

performance completed so far during the whole period of the Contract.For the performance obligations performed within a certain period of time the Group shall recognize

the income in accordance with the performance progress within that period.If the performance

progress cannot be reasonably determined and the Group is expected to be compensated for the costs

already incurred the revenue shall be recognized according to the amount of the costs already incurred

until the performance progress can be reasonably determined.For performance obligations performed at a certain point the Group recognizes revenue at the point

when the customer acquires control of the relevant goods or services.In determining whether a

customer has acquired control of goods or services the Group will take into account the following

indications:

① The Group has a current right to receive payment for the goods or services that is the Customer

has a current obligation to pay for the goods.② The Group has transferred the legal ownership of the commodity to the customer that is the

customer has the legal ownership of the commodity.③ The Group has transferred the goods in kind to the customer that is the customer has physical

possession of the goods.(4) The Group has transferred the main risks and rewards on the ownership of the commodity to the

customer that is the customer has acquired the main risks and rewards on the ownership of the

commodity.⑤ The customer has accepted the goods or services.⑥ Other indications that the customer has acquired control of the product.The Group's right to receive consideration for goods or services transferred to a customer (and this

right depends on other factors other than the passage of time) is a contract asset which is subject to

impairment on the basis of expected credit losses (see Note V 10 (5)).The Group's right unconditional

(depending only on the passage of time) to collect consideration from customers is shown as a

receivable.The Group's obligation to transfer goods or services to customers for which it has received

or receivable consideration is a contractual liability.The contract assets and contract liabilities under the same contract shall be presented on a net basis. If

the net amount is the debit balance it shall be presented under the item of "Contract Assets" or "Other

Non-current Assets" according to its liquidity;If the net amount is a credit balance it shall be shown

under the item "Contract Liabilities" or "Other Non-current Liabilities" according to its liquidity.

（2）Specific methods

The specific methods of the Group's revenue recognition are as follows:

① The method for recognizing revenue from property sales

(1) the sale contract has been signed and filed with the land department; (2) the property development

is completed and pass the acceptance; (3) For Lump-sum payment revenue is recognized by the group

when the consideration is fully received. For instalment payment revenue is recognized when the first

installment has been received and the bank mortgage approval procedures have been completed. (4)

completed the procedures for entering the partnership in accordance with the requirements stipulated

in sale contract.② The method for recognizing revenue from property services provided

According to property service contract agreed service period area served and unit price revenue is

recognized evenly within agreed service period.③ The method for recognizing revenue from rental property

In consideration of agreed lease period rent free period and total rent revenue is recognized within

agreed lease period on a straight-line basis.④ The method for recognizing revenue from construction activities

As the customer can control the goods under construction during the performance of the Group the

group shall recognize the income in accordance with the performance progress within a certain period

of time (except for performance progress cannot be reasonably determined). The group shall

determine the performance progress based on cost incurred. If the performance progress cannot be

reasonably determined and the Group is expected to be compensated for the costs already incurred the

revenue shall be recognized according to the amount of the costs already incurred until the

performance progress can be reasonably determined. If the contract costs cannot be recovered the

cost should be recognized immediately in current period when incurred. When the estimated total cost

of the contract is likely to exceed the total revenue of the contract the cost of the main business and

the estimated liabilities shall be recognized in accordance with the unexecuted loss contract. The loss

shall be recognized as current cost and put into provisions.⑤ The method for recognizing revenue from other income

Revenue from other income include income from hotel operations etc. Room revenue from hotel

operations shall be recognized in accordance with the performance progress within agreed period as

the client obtains and consumes the economic benefits brought by the Group’s performance and the

group’s performance obligations has performed at a certain period of time. For other income the

group recognizes revenue at the point when the customer acquires control of the relevant goods or

services which indicate the group has a right to receive payment for services or goods provided in

accordance with the relevant contract.Different business models of the same business will lead to differences in revenue recognition.41. Government grants

A government grant is recognised when there is reasonable assurance that the grant will be received

and that the Group will comply with the conditions attaching to the grant.If a government grant is in the form of a transfer of a monetary asset it is measured at the amount

received or receivable. If a government grant is in the form of a transfer of a non-monetary asset it is

measured at fair value. If fair value cannot be reliably determined it is measured at a nominal amount

of RMB 1.Government grants related to assets are grants whose primary condition is that the Group qualifying

for them should purchase construct or otherwise acquire long-term assets. Government grants related

to income are grants other than those related to assets.For government grants with unspecified purpose the amount of grants used to form a long-term asset

is regarded as government grants related to an asset the remaining amount of grants is regarded as

government grants related to income. If it is not possible to distinguish the amount of grants is treated

as government grants related to income.A government grant related to an asset is recognised as deferred income and amortised to profit or loss

over the useful life of the related asset on a reasonable and systematic manner. A grant that

compensates the Group for expenses or losses already incurred is recognised in profit or loss.A grant

that compensates the Group for expenses or losses to be incurred in the future is recognised as

deferred income and included in profit or loss or offset against related expenses in the periods in

which the expenses or losses are recognised. The Group applies a consistent approach to same or

similar government grant transactions.A grant related to ordinary activities is recognised as other income based on the economic substance. A

grant not related to ordinary activities is recognised as non-operating income.When a recognised government grant is reversed carrying amout of the related asset is adjusted if the

grant was initially recognized as offset against the carrying amount of the related asset. If there is

balance of relevant deferred income it is offset against the carrying amount of relevant deferred

income. Any excess of the reversal to the carrying amount of deferred income is recognised in profit

or loss for the current period. For other circumstances reversal is directly recognized in profit or loss

for the current period.42、Deferred tax assets and Deferred tax liabilitiesIncome tax comprises of current tax and deferred tax. Current tax and deferred tax are recognised in

profit or loss except to the extent that they relate to transactions or items recognised directly in equity

and goodwill arising from a business combination.Deferred tax assets and deferred tax liabilities arise from deductible and taxable temporary differences

respectively being the differences between the carrying amounts of assets and liabilities for financial

reporting purposes and their tax bases.All the taxable temporary differences are recognized as deferred tax liabilities except for those incurred

in the following transactions:

(1) initial recognition of goodwill or assets or liabilities in a transaction that is not a business

combination and that affects neither accounting profit nor taxable profit (or deductible loss);

(2) taxable temporary differences associated with investments in subsidiaries associates and joint

ventures and the Group is able to control the timing of the reversal of the temporary difference and it

is probable that the temporary difference will not reverse in the foreseeable future.The Group recognises a deferred tax asset for deductible temporary differences deductible losses and

tax credits carried forward to subsequent periods to the extent that it is probable that future taxable

profits will be available against which deductible temporary differences deductible losses and tax

credits can be utilised except for those incurred in the following transactions:

(1) a transaction that is not a business combination and that affects neither accounting profit nor

taxable profit (or deductible loss);

(2) deductible temporary differences associated with investments in subsidiaries associates and joint

ventures the corresponding deferred tax asset is recognized when both of the following conditions are

satisfied: it is probable that the temporary difference will reverse in the foreseeable future; and it is

probable that taxable profits will be available in the future against which the temporary difference can

be utilized.At the balance sheet date deferred tax is measured based on the tax consequences that would follow

from the expected manner of recovery or settlement of the carrying amount of the assets and liabilities

using tax rates enacted at the reporting date that are expected to be applied in the period when the asset

is recovered or the liability is settled.The carrying amount of a deferred tax asset is reviewed at each balance sheet date and is reduced to

the extent that it is no longer probable that the related tax benefits will be utilised. Such reduction is

reversed to the extent that it becomes probable that sufficient taxable profits will be available.43. Leases

（1）Accounting treatments for operating lease

The Group recognizes leases where all risks and rewards that exist pertaining to the ownership of the

asset are simply transferred to the lessee as financial leases. An operating lease is a lease other than a

finance lease.For the rent in the operating lease the Group shall recognize the profits and losses of the current

period in accordance with the straight-line method during each period of the lease term. The initial

direct expenses incurred in connection with the operating lease shall be recorded into the current profit

and loss.

（2）Accounting treatments for finance lease

At the beginning of the lease period the group takes the aggregate of the minimum lease receipts

determined at the inception of a lease and the initial direct costs as the book value of the receivable

finance lease funds and recognized unguaranteed residual value at the same time. The difference

between the aggregate of the minimum lease receipts the initial direct costs and the unguaranteed

residual value and the aggregate of their present value is recognized as unearned finance income.Unearned finance income is allocated to each accounting period during the lease term using the

effective interest method.When the Company acquires an asset under a finance lease the asset is measured at an amount equal to

the lower of its fair value and the present value of the minimum lease payments each determined at the

inception of the lease. At the commencement of the lease term the minimum lease payments are

recorded as long-term payables. The difference between the carrying amount of the leased assets and

the minimum lease payments is accounted for as recognized finance charges. Initial direct costs

attributable to a finance lease that are incurred by the Company are added to the carrying amount of

the leased asset. Unrecognised finance charges arising from a finance lease are 110ecognized using an

effective interest method over the lease term. Depreciation is accounted for in accordance with the

accounting policies of fixed assets.44. Other significant accounting judgments and estimates

The Group conducts an ongoing evaluation of the significant accounting estimates and key

assumptions used in the light of historical experience and other factors including reasonable

expectations of future events. Important accounting estimates and key assumptions that are likely to

result in the risk of a material adjustment in the carrying value of assets and liabilities during the next

fiscal year are set out below:

Classification of financial assets

The Group's major judgments in determining the classification of financial assets include the analysis

of business models and contractual cash flow characteristics.The Group determines the business model for the management of financial assets at the level of its

financial portfolio taking into account factors such as the way in which the performance of financial

assets is evaluated and reported to key managers the risks affecting the performance of financial assets

and their management methods and the way in which managers of related businesses are remunerated.When evaluating whether the contractual cash flow of financial assets is consistent with the basic

lending arrangement the Group has the following main judgments: whether the time distribution or

amount of the principal in the duration period may change due to reasons such as prepayment; Does

interest include only the time value of money credit risk other fundamental borrowing risks and

consideration for costs and profits? For example does the prepayment amount only reflect the

outstanding principal and interest based on the outstanding principal and reasonable compensation for

early termination of the contract.Measurement of expected credit losses in accounts receivable

The Group calculates the expected credit loss of accounts receivable through the default risk exposure

of accounts receivable and the expected credit loss rate and determines the expected credit loss rate

based on the default probability and the default loss rate. In determining the expected credit loss rate

the Group uses data such as internal historical credit loss experience and adjusts the historical data in

combination with the current situation and forward-looking information. When considering

forward-looking information the indicators used by the Group include the risk of an economic

downturn changes in the external market environment the technological environment and customer

conditions. The Group regularly monitors and reviews assumptions relating to the calculation of

expected credit losses.Deferred tax assets

Deferred tax assets should be recognized for all unutilized tax losses to the extent that there is likely to

be sufficient taxable profit to offset the loss. This requires management to use a great deal of judgment

to estimate when and how much future taxable profits will occur in combination with tax planning

strategies to determine the amount of deferred tax assets that should be recognized.The provision of land appreciation tax

The Group is subject to land appreciation tax (“LAT”). The accrual of LAT is subject to

management’s estimation which is made based on its understanding of the requirements of relevant tax

laws and regulations. However the actual LAT is levied by tax authorities according to the

interpretation of the tax rules. The group is not stepping on formulating the final tax plan with relevant

tax authorities hence the final tax outcome could be different from the amount that was initially

recorded and these differences will have an impact on tax provision in current period.Determination of fair value of unlisted equity investments

The fair value of an unlisted equity investment is the estimated future cash flows discounted at the

current discount rate for Items with similar terms and risk characteristics. This valuation requires the

Group to estimate expected future cash flows and the discount rate and is therefore subject to

uncertainty. In limited circumstances if the information used to determine the fair value is insufficient

or if the possible estimates of the fair value are spread over a wide range and the cost represents the

best estimate of the fair value within that range the cost may represent the appropriate estimate of the

fair value within that range.45. Changes in significant accounting policies and accounting estimates

（1）Significant changes in accounting policies

□ Applicable √ Not Applicable

（2）Significant changes in accounting estimates

□ Applicable √ Not Applicable

（3）Adjustment of the relevant financial statements in current period due to the implementation of the

new leasing standard implemented initially commencing from 2021

Whether to adjust the balance sheet account at the beginning of the year?

□ Yes √ No

The reason for not adjusting balance sheet account t the beginning of the year:

In accordance with the provisions of the new leasing standards from January 1 2021 the group

choose to recognize right-of-use assets and lease liabilities for all leased assets at the present value of

the minimum lease payment for future rent payable with the exception of simplified short-term leases

and leases of low-value assets and to recognize depreciation and interest expenses respectively without

adjusting the information for comparable periods.In practice there are not many leased assets within the group which is the main reason to simplify

short-term leases and leases of low-value assets and no longer recognize its right-of-use assets and lease

liabilities.

（4）Note to the retroactive adjustment of the previous comparative data due to the implementation of the

new leasing standard implemented initially commencing from 2021

□ Applicable √ Not Applicable

46. Other

VI. Taxation

1. Main types of taxes and corresponding tax rates

Tax type Tax basis Tax rate%

VAT Taxable income 9%、6%、5%、3%City maintenance and construction

Turnover tax payable 7%

tax

Corporate income tax Taxable profits 25%、16.5%It shall be levied on the basis

of the value-added value of

the real estate transferred and

Four progressive rates of excess

Land appreciation tax the prescribed tax rate and

rate: 304050 60

paid in advance according to

the type of real estate

product

70% of the original value of

Property tax 1.2%

properties

Education surcharge Turnover tax payable 3%

Local education surcharge Turnover tax payable 2%

The disclosure of taxpayers in different corporate income tax rates:

Name of taxpayer Income tax rate

2. Tax preferential treatments

Subsidiaries of the Group Shenzhen Huazhan Construction Supervision Co. Ltd. and Shantou Special

Economic Zone Xiangshan Real Estate Development Co. Ltd. are applicable to the preferential tax

rate of 20% for small and low-profit enterprises.3、OtherWith regards to revenue from property development property management and construction activities

from May 1st 2016 the group’s taxable items and tax rates are shown in the following table which inaccordance with the relevant regulations of《Notice on comprehensively promoting the trial ofreplacing business tax with Value-Added tax》([2016] No.36).Revenue Type The computation of Tax Applicable Tax Rate

Revenue from property sale Simplified tax 5%

Revenue from contruction Simplified tax 9%、3%activities

Rental income Simplified tax 5%

Revenue from property Filing return generally 6%

management

Explanation of corporate income tax rate of different taxpayers:

The corporate income tax rate for companies registered in China is 25% while for companies registered

in Hong Kong is 16.5%.VII. Notes to the consolidated financial statements

1. Cash at bank and Cash Equivalent

Presented in RMB

Item As at 30 June 2021 As at 30 June 2020

Cash in hand 17999.52 61121.83

Deposits with banks 866174881.23 1026042804.99

Other monetary funds 16113125.57 1661361143.19

Total 882306006.32 2687465070.01

Including: Total overseas

6457645.84 6699719.34

deposits

Other notes:

As at 30 June 2021 the Group has other monetary funds at RMB 16113125.57 is seven-day notice

deposit which consists of principal RMB 16000000.00 and interest income RMB 113125.57.2. Trading financial assets

Presented in RMB

Item As at 30 June 2021 As at 30 June 2020

As at fair value through profit or

1302329484.00

loss

Including:

Total 1302329484.00

Other Note:

As at 30 June 2021 trading financial assets at RMB 1302329484.00 is money market fund including

principal at RMB 1300000000.00 and earnings at RMB 2329484.00.3. Derivative financial assets

Presented in RMB

Item As at 30 June 2021 As at 30 June 2020

4. Notes receivable

（1）Types of notes

Presented in RMB

Item As at 30 June 2021 As at 30 June 2020

Commercial acceptance bill 40590521.89 35438045.34

Total 40590521.89 35438045.34

Presented in RMB

As at 30 June 2021 As at 30 June 2020

Bad debt Bad debt

Book balance Book balance

provision provision

Classification Provisi Book Provisi Book

Percen Amou on value Amoun Percent on value

Amount Amount

tage nt propor t age proport

tion ion

Including：

Bad debt

provisions

42455682. 186516 4059052 3730320 1865160.2 3543804

made on a 100.00% 4.39% 100.00% 5.00%

17 0.28 1.89 5.62 8 5.34

combination

basis

Including：

42455682. 186516 4059052 3730320 1865160.2 3543804

Total 100.00% 4.39% 100.00% 5.00%

17 0.28 1.89 5.62 8 5.34

Bad debt provision made on an individual basis:

Presented in RMB

As at 30 June 2021

Item Provision

Book balance Bad debt provision Reason

proportion

Bad debt provision made on a combination basis:

Presented in RMB

As at 30 June 2021

Item

Book balance Bad debt provision Provision proportion

commercial acceptance

42455682.17 1865160.28 4.39%

bill

Total 42455682.17 1865160.28 --

Note：

Bad debt provision made on a combination basis:

Presented in RMB

As at 30 June 2021

Item

Book balance Bad debt provision Provision proportion

Note:

Please refer to the way of disclosing other receivables’ bad debt provision to disclose relevant

information if the group choose to use general model of expected credit losses to accrue bad debts of

notes receivable.□ Applicable √ Not Applicable

（2）Additions recoveries or reversals of provision for the current period

Additions in current period：

Presented in RMB

The amount of change in current period

As at 30 June As at 30 June

Item Recoveries or

2020 Provision Written-off Others 2021

reversals

commercial

acceptance 1865160.28 1865160.28

bill

Total 1865160.28 1865160.28

Including: significant recoveries or reversals of bad debt provisions in the current period:

□ Applicable √ Not Applicable

（3）Notes receivable pledged by the Group at the end of the period

Presented in RMB

Types Amount pledged at the end of the period

（4）At the end of the period the Group's endorsed or discounted notes receivable which have not yet

matured

Presented in RMB

Derecognized Amount at the end Amount that is not derecognized

Types

of the period at the end of the period

commercial acceptance bill 7818054.79

Total 7818054.79（ 5 ） Notes receivable transferred to accounts receivable by the Group due to the drawer's

non-performance at the end of the period

Presented in RMB

Amount transferred to accounts receivable at the

Types

end of the period

Note:

The group doesn’t have Notes receivable transferred to accounts receivable by the Group due to the

drawer's non-performance at the end of the period.

（6）Actual write-off of notes receivable in the current period

Presented in RMB

Item Written-off amount

Including the significant write-offs of notes receivable are as follows

Presented in RMB

Approval Accounts

procedures receivable

Name of the Nature of Written-off Reason for performed arising from

entity accounts amount written-off related party

transactions(Y/

Note:

5. Accounts receivable

（1）Classified by bad debt provision method

Presented in RMB

As at 30 June 2021 As at 30 June 2020

Types Bad debt Book Bad debt Book

Book balance Book balance

provision value provision value

Provisi Provisi

Amou Percent Amou on Amoun Percent Amoun on

nt age (%) nt percent t age (%) t percent

age age

Bad debt

provisions made 246881 246881 2468814 2468814

24.70% 100.00% 0.00 28.58% 100.00% 0.00

on an individual 43.06 43.06 3.06 3.06

basis

Bad debt

provisions made

752483 938770. 7430953 6168128 2090342 59590944.on a 75.30% 1.25% 71.42% 3.39%

10.38 44 9.94 6.47 .41 06

combination

basis

Receivable from 564446 282223. 5362241 1111428 555714.2 10558571.5.65% 5.00% 12.87% 5.00%

property sales 4.48 22 .26 5.60 8 32

Receivable from

696038 656547. 6894729 5056700 1534628 49032372.other corporate 69.65% 0.94% 58.55% 3.03%

45.90 22 8.68 0.87 .13 74

customers

999364 256269 7430953 8636942 2677848 59590944.Total 100.00% 25.64% 100.00% 31.00%

53.44 13.50 9.94 9.53 5.47 06

Bad debt provisions made on an individual basis

Presented in RMB

As at 30 June 2021

Item Provision

Book balance Bad debt provision Reason

percentage

Agent for import

Could be

and export business 11574556.00 11574556.00 100.00%

uncollectible

payment

Long-term

Could be

receivable of 10132205.24 10132205.24 100.00%

uncollectible

property sale

Accounts receivable

Could be

from the revoked 2328158.40 2328158.40 100.00%

uncollectible

subsidiary

Accounts receivable

Could be

from other 653223.42 653223.42 100.00%

uncollectible

customers

Total 24688143.06 24688143.06 -- --

Bad debt provisions made on an individual basis

Presented in RMB

As at 30 June 2021

Item Provision

Book balance Bad debt provision Reason

percentage

Bad debt provision made on a combination basis:

Combined withdrawal item: property sales receivable

Presented in RMB

As at 30 June 2021

Item

Book balance Bad debt provision Provision percentage

Within 1 year 5644464.48 282223.22 5.00%

1 to 2 years

Total 5644464.48 282223.22 --

Note to the basis for determining the combination:

Bad debt provision made on a combination basis:

Combined withdrawal item: other customers receivales

Presented in RMB

As at 30 June 2021

Item

Book balance Bad debt provision Book balance

Within 1 year 58430587.78 97884.31 0.17%

1 to 2 years 11173258.12 558662.91 5.00%

Total 69603845.90 656547.22 --

Note to the basis for determining the combination:

Bad debt provision made on a combination basis:

Presented in RMB

As at 30 June 2021

Item

Book balance Bad debt provision Book balance

Note to the basis for determining the combination:

Please refer to the way of disclosing other receivables’ bad debt provision to disclose relevant

information if the group choose to use general model of expected credit losses to accrue bad debts of

notes receivable.□ Applicable √ Not Applicable

Disclosure by Aging

Presented in RMB

Aging As at 30 June 2021

Within 1 year（include 1 year） 64075052.26

1 to 2 years 11173258.12

3to 5 years 24688143.06

More than 5 years 24688143.06

Total 99936453.44

（2）Additions recoveries or reversals of provision for the current period

Provision for the current period:

Presented in RMB

Amount changes in current period

As at 30 June As at 30 June

Types Recoveries or

2020 Provision Written-off Others 2021

reversals

Bad debt

26778485.47 -1151571.97 25626913.50

provision

Total 26778485.47 -1151571.97 25626913.50

Including: significant recoveries or reversals of bad debt provisions in the current period are as follows:

Presented in RMB

Name of the entity Recoveries or reversals amount Recovery manner

（3）Actual write-off of accounts receivable in the current period

Presented in RMB

Item Written-off amount

Including the significant write-offs of accounts receivable are as follows

Presented in RMB

Approval Accounts

procedures receivable

Nature of

Name of the Written-off Reason for performed arising from

accounts

entity amount written-off related party

receivable

transactions(Y/

Note：

（4）The top five units with the ending balance of accounts receivable collected by the debtor

Presented in RMB

% of the total closing

Name of the Accounts receivable Bad debt provision

balance of accounts

entity The ending balance The ending balance

receivable

Wuhan Linyun Real

Estate Development 30694772.90 30.71% 1534738.65

Co. Ltd.China Construction

Third Bureau

10967071.74 10.97% 548353.59

Group

Co. Ltd.Jiangsu Huajian

Construction Co.9847885.22 9.85% 492394.26

Ltd.Shenzhen Branch

Wuhan Yutian

Xingye Land Co. 7923254.23 7.93% 396162.71

LTD

Hubei Chuheng

5169691.40 5.17% 258484.57

Real Estate Co. Ltd.Total 64602675.49 64.63%

（5）Accounts receivable terminated due to the transfer of financial assets

（6）Transfer of accounts receivable and continue to involve the amount of assets and liabilities formed

Note：

At the end of the period due to the factoring of accounts receivable the factoring amount is

70773140.58 yuan. At the same time the book value of accounts receivable is 70773140.58 yuan the

bad debts have been set aside. Refer to Note VII. 81 for pledge of accounts receivable.6、Accounts receivable financingPresented in RMB

As at 30 June 2020

Item As at 30 June 2021

The current period of receivables financing changes and changes in fair value.□ Applicable √ Not applicable

Refer to the way of disclosing provision for other receivables to disclose relevant information if use

general model of expected credit losses to recognize allowance for impairment of receivable financing .□ Applicable √ Not applicable

Note：

7. Prepayments

（1）(1) The aging analysis of prepayments is as follows

Presented in RMB

As at 30 June 2021 As at 30 June 2020

Aging Amount % Amount %

Within 1 year

2229920.78 48.77% 3004771.47 93.74%

1 to 2 years

2141340.29 46.84% 213.04 1.01%

2 to 3 years

200000.00 4.37% 200000.00 6.23%

More than 3 years

760.61 0.02% 550.00 0.02%

Total

4572021.68 -- 3205534.51 --

Reason for significant prepayments aging more than 1 year and not be settled:

（2）The top five units of the ending balance of prepayments

The sum of the top five prepayments collected by prepaid objects at the end of the period is

4572021.68 yuan which accounts for 100.00% of the total ending balance of prepayments.8、Other receivablesPresented in RMB

Item As at 30 June 2021 As at 30 June 2020

Dividends receivable 1052192.76 1052192.76

Other receivables 17766089.78 31692851.08

Total 18818282.54 32745043.84

（1）Interest receivable

1）Interest receivable classification

Presented in RMB

Item As at 30 June 2021 As at 30 June 2020

2）Significant overdue interest

Presented in RMB

Whether

Overdue time impairment occurs

Borrowing unit The ending balance Overdue reason

(month) and the basis for

judgment

3）Bad Debt Provisions

□ Applicable √ Not Applicable

（2）Dividends receivable

1）Dividends receivable classification

Presented in RMB

Items (or invested units) As at 30 June 2021 As at 30 June 2020

Yunnan Kunpeng Air Service

1052192.76 1052192.76

Co. LTD

Total 1052192.76 1052192.76

2）Significant dividends receivable overdue more than one year are as follows:

Presented in RMB

Whether impairment

Items (or invested As at 30 June Reasons for

Aging occurs and the basis for

units) 2021 not retrieving

judgment

Yunnan Kunpeng Air

1052192.76 5 years Delay to issue No

Service Co. LTD

Total 1052192.76 -- -- --

3）Bad Debt Provisions

□ Applicable √ Not Applicable

（3）Other receivables

1）Other receivables disclosure by nature

Presented in RMB

Book balance as at 30 June Book balance as at 30 June

Item

2021 2020

Other receivables from

503336.80 553009.68

government

Other receivables from

3175470.25 364674.25

employee’s petty cash

Other receivables from the

665251.08 665251.08

collecting and paying on behalf

Other receivables from other

60547008.26 63398344.58

customers

Other receivables from related

148574423.06 161948487.76

parties

Total 213465489.45 226929767.35

2）Bad Debt Provision

Presented in RMB

first stage Second stage Third stage

Bad Debt Provision To 12-month To lifetime expected To 12-month Total

expected credit loss credit loss (has

expected credit

(no credit occurred credit

loss

impairment) impairment)

Balance as at 1 January

1584732.41 193652183.86 195236916.272021

Balance as at 1 January

—— —— —— ——

2021 in current period

Provision in a current

1605063.68 -1142580.28 462483.40

period

Balance as at 30 June

3189796.09 192509603.58 195699399.672021

Changes in the book balance with significant changes in the loss provision for the current period:

□ Applicable √ Not Applicable

Disclosure by aging

Presented in RMB

Aging As at 30 June 2021

Within 1 year (include 1 year) 19966456.40

1 to 2 years 23055181.11

3 to 4 years 171496044.70

4 to 5 years 171496044.70

Total 214517682.21

3）Additions recoveries or reversals of provision for the current period

Presented in RMB

Amount changes in current period

As at 30 As at 30 June

Types Recoveries

June 2020 Additions Written-off Others 2021

or reversals

Other receivables

195236916.27 462483.40 195699399.67

bad debt provision

Total 195236916.27 462483.40 195699399.67

Including: significant recoveries or reversals of bad debt provisions in the current period are as follows:

Presented in RMB

Amount of recoveries or

Name of the entity Recovery manner

reversals

4）Other receivables actually written off in the current period

Presented in RMB

Item Amount of written-off

Including the important accounts receivable write-off situation is as follows

Presented in RMB

Verification and Whether the

Name of the Nature of other Amount of cancellation payment is

Reason

entity receivable written-off procedures to generated by an

be performed affiliate

transaction

Note：

5）The top five units of ending balance of other receivables

Presented in RMB

Ending Proportion of Ending

Nature of

balance of total ending balance of

Name of the entity other Aging

other balance of other bad debt

receivables

receivables receivables (%) provision

Canada Great Wall current More than 5

89035748.07 41.51% 89035748.07

(Vancouver) Co. Ltd account years

current More than 5

Paklid Limited 19319864.85 9.01% 19319864.85

account years

Australia Bekaton property current More than 5

12559290.58 5.85% 12559290.58

Limited account years

Guangdong province current More than 5

Huizhou Luofu Hill Mineral account 10465168.81 years 4.88% 10465168.81

Water Co.Ltd

Xi’an Fresh Peak Property current More than 5

8419205.19 3.92% 8419205.19

Trading Co. Ltd account years

Total -- 139799277.50 -- 65.17% 139799277.50

6）Government subsidies receivable

Presented in RMB

Name of Estimated time

Name of the

government The ending balance Aging amount and basis

organization

subsidy item of collection

7）Other receivables terminated due to the transfer of financial assets

8）Amount of assets and liabilities formed by transferring other receivables and continuing to involve them

9. Inventories

Does the Company need to comply with the disclosure requirements of real estate industry?

Yes

（1）Inventory classification

The company complies with the disclosure requirements of "Shenzhen Stock Exchange Industry

Information Disclosure Guidelines No. 3-Listed Companies Engaged in Real Estate Business".Classified by nature:

Presented in RMB

As at 30 June 2021 As at 30 June 2020

Provision for Provision for

Item impairment The book impairment The book

Book balance Book balance

of inventorie value of inventorie value

s s

Inventory

107762511.63 278891.91 107483619.72 5019143.11 278891.91 4740251.20

Equipment

Real estate

developing 1807527864.66 1807292813.20 556589091.25 556589091.25

cost

Real estate

developed 1060450014.45 268941.60 1060181072.85 659403711.71 268941.60 659134770.11

products

Total 2975740390.74 547833.51 2974957505.77 1221011946.07 547833.51 1220464112.56

The main items of " Real estate developing cost " and their interest capitalization are shown below:

Presented in RMB

Include:

Less:

Cumulati Amount

Estimated Transfer Add:

Time for Less: ve of interestStarting total As at 30 to “Real Increase As at 30 SourcesItem completio Other interest capitalize

time investmen June 2020 estate in this June 2021 of funds

n reduction capitalizat d in the

t developed period

ion current

products

period

TianYu

1 Sep 9 May 6548500 5312971 5345477 3250575 1014744

e Bay 0.00 0.00 0.00 Other

2018 2021 00.00 83.14 58.88 .74 .90

No.2

ShanTo

u Fresh

2529190 2529190

Peak Other

8.11 8.11

Buildin

Lin Xin 1 June 30 June 3000000 1782000 1782000

Other

Garden 2021 2023 000.00 905.09 905.09

3654850 5565890 5345477 1785251 1807292 1014744

Total -- -- 0.00 --

000.00 91.25 58.88 480.83 813.20 .90

The main items of " Real estate developed products" and their interest capitalization are shown below:

Presented in RMB

Item Time for As at 30 June Increase Decrease As at 30 June Cumulative Include: Amount

completion 2020 2021 interest of interest

capitalization capitalized in the

current period

Jinye Island

16 Sep.Multi-tier 39127219.14 51600.00 39178819.141997

villa

Jinye Island

2 Dec 2010 5387376.71 5387376.71

villa No.10

Jinye Island 20 Aug.2333281.42 2333281.42

villa No.11 2008

YueJing

18 Nov.dongfang 7727546.84 236918.46 7490628.382014

Project

Wenjin

23198.37 23198.37

Garden

HuaFeng

0.00

Building

HuangPu

140000.00 140000.00

XinCun

XingHu

0.00

Garden

Shenfang

Shanglin 1 Jan. 2014 10206656.46 10206656.46 820623.32

Garden

Beijing

Fresh Peak 304557.05 304557.05

Buliding

TianYue 15 Dec. 335020709.0

31883188.17 303137520.84

Bay No.1 2017 1

Shengfang

CuiLin 8 May 2018 55783765.78 4176133.13 51607632.65 0.00

Building

Chuanqi 18 Dec 203349400.9

97256816.38 106092584.55 2412880.86

Donghu 2019 3

TianYue 30 June 534547758.8

534547758.88

Bay No.2 2021 8

659403711.7 534599358.8 133553056.1

Total -- 1060450014.45 3233504.18

1 8 4The main items of "instalment on development products” "leased development products” “Revolvingroom” are shown below:

Presented in RMB

Item As at 30 June 2020 Increase Decrease As at 30 June 2021

（2）Provision for inventories and impairment of contract performance costs

Classified by nature：

Presented in RMB

Increase in the reporting

Decrease in the reporting period

Opening period

Item Ending balance Note

balance Reversal or

Provision Others Others

Offset

Inventory

278891.91 278891.91

Equipment

Real estate

developed 268941.60 268941.60

products

Total 547833.51 547833.51 --

Classified by items:

Presented in RMB

Increase in the reporting

Decrease in the reporting period

Opening period

Item Ending balance Note

balance Reversal or

Provision Others Others

Offset

Raw material 2 240000.00 240000.00

Finished products 38891.91 38891.91

Shang Lin

268941.60 268941.60

Garden

Total 547833.51 547833.51 --

（3）The ending balance of inventory contains the explanation of the capitalized amount of borrowing

expenses:

As at 30 June 2021 the Group's inventory balance contains capitalized borrowing costs at 3233504.18

yuan (As at 31 Dec 2020 is 3497172.46 yuan).

（4）Restriction on Inventories

Disclose restriction on Inventories by projects：

Presented in RMB

Name of project Opening balance Ending balance Reason of restriction

10. Contractual assets

Presented in RMB

Ending balance Opening balance

Provision

Item Book Provision for Book

Book value for Book value

balance impairment balance

impairment

The Amount and reason of significant changes in book value of contractual assets in current reporting

period:

Presented in RMB

Item Changes in amount Reason for change

Refer to the way of disclosing provision for other receivables to disclose relevant information if use

general model of expected credit losses to recognize allowance for impairment of contractual assets.□ Applicable √ Not applicable

Provision for impairment of contractual assets in current period:

Presented in RMB

Verification /

Provision in Reversals in current

Item Written-off in Reason

current period period

current period

Note:

11. Assets held for sale

Presented in RMB

Book balance Book value as

Provision for Estimated Estimated

Item as at 30 June at 30 June Fair Value

impairment disposal costs disposal time

2021 2021

Note:

12、Non-current assets due within one yearPresented in RMB

Item As at 30 June 2021 As at 30 June 2020

Significant debt investment/ other debt investment

Presented in RMB

As at 30 June 2021 As at 30 June 2020

Real Real

Debt investment Face Coupon Maturity Face Coupon Maturity

interest interest

value rate date value rate date

rate rate

Note：

13. Other current assets

Presented in RMB

Item As at 30 June 2021 As at 30 June 2020

Advance or prepaid income tax 68363843.23 68880760.27

Prepaid VAT 21698004.38 25577294.63

Input tax to be deducted 37028466.31 4741378.98

Land Appreciation Tax 4164318.88 2083793.61

Business Tax 332522.82 312287.17

Others 1217512.63 1311620.13

Total 132804668.25 102907134.79

Note：

14. Debt investment

Presented in RMB

As at 30 June 2021 As at 30 June 2020

Item Impairment The book Impairment The book

Book balance Book balance

loss value loss value

Significant debt investment

Presented in RMB

As at 30 June 2021 As at 30 June 2020

Real Real

Debt investment Face Coupon Maturity Face Coupon Maturity

interest interest

value rate date value rate date

rate rate

Impairment provisions for the current period

Presented in RMB

Provision The first stage The second stage The third stage Total

Expected credit loss

Expected credit

Expected credit over the entire

losses over the entire

losses over the duration (credit

duration (no credit

next 12 months impairment has

impairment occurred)

occurred)

Balance as at 30

—— —— —— ——

June 2021

Significant changes in book balance of impairment provisions for the current period

□ Applicable √ Not Applicable

Note：

15. Other debt investment

Presented in RMB

Accumula

te the loss

Cumulativ provision

Changes

Opening Accrued Ending The cost e fair recognize

Item in current Note

balance interest Balance of value d in other

fair value

changes comprehe

nsive

income

Significant other debt investment

Presented in RMB

As at 30 June 2021 As at 30 June 2020

Other debt Real Real

Face Coupon Maturity Face Coupon Maturity

investment interest interest

value rate date value rate date

rate rate

Impairment provisions for the current period

Presented in RMB

The first stage The second stage The third stage

Expected credit loss

Expected credit

Expected credit over the entire

Provision losses over the entire Total

losses over the duration (credit

duration (no credit

next 12 months impairment has

impairment occurred)

occurred)

Balance as at 1 Jan.—— —— —— ——2021

Significant changes in book balance of impairment provisions for the current period

□ Applicable √ Not Applicable

Note：

16. Long-term receivables

（1）Long-term receivables are disclosed by nature

Presented in RMB

As at 30 June 2021 As at 30 June 2020

Discount

Item Book Bad debt Book Valu Book Bad debt

Book Value rate range

balance provision e balance provision

Bad Debt Provision

Presented in RMB

The first stage The second stage The third stage

Expected credit loss

Expected credit

Expected credit over the entire

Provision losses over the entire Total

losses over the duration (credit

duration (no credit

next 12 months impairment has

impairment occurred)

occurred)

Balance as at 1 Jan.—— —— —— ——2021

Significant changes in book balance of impairment provisions for the current period

□ Applicable √ Not Applicable

（2）Long-term receivables terminated due to financial asset transfer

（3）Amount of transferring long-term receivables and continuing to involve in the formation of assets and

liabilities

17. Long-term equity investments

Presented in RMB

Investees Opening Movements during the period Ending Balance of

balance (book Investmen balance (book provision for

Declared

value) t in come Other Provisi value) impairment as

Adjustm distributio

Incr Decr recogni eq uity on f or Othe June 30 2021

ent in n of cash

ease ease sed under move impair r

OCI dividends

equity met m ents m ent

or profits

1. Joint Venture

Guangdong

province

Huizhou Luofu 9969206.09 9969206.09 9969206.09

Hill Mineral

Water Co. Ltd

Fengkai Xinhua

9455465.38 9455465.38 9455465.38

Hotel

Subtotal 19424671.47 19424671.47 19424671.47

2. Associates

Shenzhen

Ronghua JiDian 1454444.29 1454444.29 1076954.64

Co. ltd

Shenzhen

Runhua

1445425.56 1445425.56 1445425.56

Automobile

trading Co. Ltd

Dongyi Real

30376084.89 30376084.89 30376084.89

Estate Co. Ltd

Subtotal 33275954.74 33275954.74 32898465.09

Total 52700626.21 52700626.21 52323136.56

Note:

Investee Accounting As at Jun 30 2020 Movement As at Jun 30 2021 Provision for

treatment impairment

Paklid Limited Cost method 201100.00 -- 201100.00 201100.00

Australia Bekaton Property Limited Cost method 906630.00 -- 906630.00 906630.00

Shenzhen Shenfang Department Store Co. Cost method 10000000.00 -- 10000000.00 10000000.00

Ltd.Shantou Fresh Peak Building Cost method 58547652.25 -- 58547652.25 58547652.25

Guangdong Province Fengkai Lain Feng Cost method 56228381.64 -- 56228381.64 56228381.64

Cement Manufacturing Co. Ltd

Jiangmen XinJiang real estate compnay Cost method 9037070.89 9037070.89 9037070.89

Xian Xinfeng property trading ltd. Cost method 32840729.61 32840729.61 32840729.61

Total 167761564.39 0.00 167761564.39 167761564.39

Note：The equity of subsidiaries which are not included in consolidation scope are recoded inlong-term equity investment. Some of these subsidiaries are winded up already but the group hasn’t

write off its long-term equity investment. Some of these subsidiaries ceased operating many years ago

and no longer exist the group could not implement effective management control over them. Refer to

Note IX for more details.18、Investments in other equity instrumentPresented in RMB

Item As at 30 June 2021 As at 30 June 2020

Shantou Small &Medium Enterprises

14076578.89 13508202.32

Financing Guarantee Co. Ltd

Yunnan KunPeng Flight service Co. Ltd 24004696.29 24002658.19

Total 38081275.18 37510860.51

Itemized disclosure of investment in non-trading equity instruments for the current period

Presented in RMB

Reasons for

The amount of

Dividend designating fair

other

income value

The The comprehensive

recognized measurement and Transferring

Item cumulative cumulati reserve

for the its changes reasons

gains ve loss transferred into

current included in other

retained

period comprehensive

earnings

income

Shantou Small &Medium Enterprises

4044060.00

Financing Guarantee Co. Ltd

Yunnan KunPeng Flight service Co.1653305.67

Ltd

Total 5697365.67

Note：

19、Other non-current financial assetsPresented in RMB

Species As at 30 June 2021 As at 30 June 2020

20. Investment property

（1）(1) Investment properties measured using the cost model

Presented in RMB

Construction in

Item Buildings Land use rights Total

progress

Ⅰ. Cost

1. Balance as at 31 Dec. 2020 1054731893.62 100572661.91 1155304555.53

2. Additions during the year

（1）Purchase

（2）Transfer from

Inventories\Fixed assets\

construction in progress

（3）Additions due to business

combinations

3. Decrease during the year 1034257.33 1034257.33

（1）Disposals

（2）Other transfers out

（3）Others（change on foreign1034257.33 1034257.33

exchange)

4.Balance as at 30 June 2021 1054731893.62 99538404.58 1154270298.20

II. Accumulated depreciation or

amortization

1. Balance as at 31 Dec. 2020 442265712.97 442265712.97

2. Charge for the year 12826588.91 12826588.91

（1）Depreciated or amortised 12826588.91 12826588.91

3. Reductions during the yea

（1）Disposals

（2）Other transfers out

4.As at 30 June 2021 455092301.88 455092301.88

III. Provision for impairment

1. Balance as at 31 Dec. 2020 14128544.62 82544676.41 96673221.03

2. Charge for the year

(1) Provision(3) Others（change on foreignexchange）

3. Reductions on disposals 848863.25 848863.25

（1）Disposals

（2）Other transfers out

（3）Others（change on foreign848863.25 848863.25

exchange)

4.As at 30 June 2021 14128544.62 81695813.16 95824357.78

IV. Carrying amounts

1. As at 30 June 2021 585511047.12 17842591.42 603353638.54

2. As at 31 Dec 2020 598337636.03 18027985.50 616365621.53

（2）Investment property measured at fair value

□ Applicable √ Inapplicable

The company complies with the disclosure requirements of "Shenzhen Stock Exchange Industry

Information Disclosure Guidelines No. 3-Listed Companies Engaged in Real Estate Business"

Disclosed by projects：

Presented in RMB

Rental

Time for Fair value Reasons and Index

building income in Fair value as at Movement in

Project name Location completio as at 31 for fair value

area reporting 30 June 2021 Fair value

n Dec. 2020 change

period

Does the company have investment real estate that is currently under construction?

□ Yes √ No

Whether the company has new investment real estate measured at fair value in the current period?

□ Yes √ No

（3）Investment properties pending certificates of ownership

Presented in RMB

Item Carrying amount Reason why certificates are pending

Note: The current reduction in the original value of land use right and the impairment provision is

caused by the exchange rate changes during the translation of foreign currency statements

21、Fixed assetsPresented in RMB

Item As at 30 June 2021 As at 31 Dec. 2020

Fixed assets 26885430.32 28039978.43

Total 26885430.32 28039978.43

（1）Fixed assets

Presented in RMB

Plant & buildings Motor vehicles Electronic equipment and Total

Item

others

I．Cost：

1. Balance as at 31

107700181.42 10441558.92 13645811.86 131787552.20

Dec. 2020

2.Additions during the

404299.91 345101.00 749400.91

year

(1) Purchases 404299.91 345101.00 749400.91

(2) Transfers from

construction in progress

（3) Additions due tobusiness combinations

3. Decrease during the

230102.00 93161.56 323263.56

year

(1) Disposals or

230102.00 93161.56 323263.56

written-offs

4.As at 30 June 2021 107700181.42 10615756.83 13897751.30 132213689.55

II. Accumulated

depreciation

1. Balance as at 31

83519658.69 9059003.88 11168911.20 103747573.77

Dec. 2020

2. Charge for the year 1382173.18 146352.35 366004.52 1894530.05

(1) Provision 1382173.18 146352.35 366004.52 1894530.05

3. Reductions for the

227552.00 86292.59 313844.59

year

(1) Disposal or

227552.00 86292.59 313844.59

written-offs

4. Balance as at 30

84901831.87 8977804.23 11448623.13 105328259.23

June 2021

III. Provision for

impairment

1. Balance as at 31

Dec. 2020

2. Charge for the year

(1) Provision

3. Reductions for the

year

(1) Disposals or

written-offs

4.Balance As at 30

June 2021

IV. Carrying amount

1. As at 30 June 2021 22798349.55 1637952.60 2449128.17 26885430.32

1. As at 31 Dec. 2020 24180522.73 1382555.04 2476900.66 28039978.43

（2）Temporarily idle fixed assets

Presented in RMB

Accumulated Provision for

Item Cost impairment Carrying Amount Note

depreciation

（3）Fixed assets leased out under operating leases

Presented in RMB

Carrying amount at the end of reporting period

Item

（4）Fixed assets pending certificates of ownership

Presented in RMB

Reason why certificates of

Item Carrying amount

ownership are pending

Note

（5）Fixed assets to be disposed of

Presented in RMB

项目 As at 30 June 2021 期初余额

Note:

22. Construction in progress

Presented in RMB

Item As at 30 June 2021 As at 31 Dec. 2020

（1）Construction in progress

Presented in RMB

As at 30 June 2021 As at 31 Dec. 2020

Item Provision for Provision for

Book value impairment Carrying amount Book value impairment Carrying amount

（2）Movements of major construction Items in progress

Presented in RMB

Percenta Includin Interest

Balance Other Balance ge of Accumul g: rate for Sources

Transfers

as at 31 Addition deductio as at 30 actual Item ated interest capitalisa of

Item Budget to fixed

Dec. s ns for the June cost to progress capitalise capitalise tion in funding

assets

2020 year 2021 budget d interest d in 2021(%)

(%) 2021

（3）Provision for impairment of construction in progress

Presented in RMB

Item Provision for current period Reason for provision

Note:

（4）Construction materials

Presented in RMB

As at 30 June 2021 As at 31 Dec. 2020

Item Provision for Carrying Provision for Carrying

Book balance Book balance

impairment amount impairment amount

23、Productive living assets

（1）Measured at cost

□ Applicable √ Not applicable

（2）Measured at fair value

□ Applicable √ Not applicable

24. Oil and gas assets

□ Applicable √ Not applicable

25. Use rights assets

Presented in RMB

Item Total

26. Intangible assets

（1）Intangible assets

Presented in RMB

Land use

Item Patent right Know-how Software Total

rights

I.Cost

1. Balance as at 31 Dec. 2020 2241800.00 2241800.00

2.Additions during the year

(1) Purchase

(2) Internal development

(3) Additions due to

business combination

3. Decrease during the year

(1) Disposals

4.As at 30 June 2021 2241800.00 2241800.00

II. Accumulative amortisation

1. Balance as at 31 Dec. 2020 2241800.00 2241800.00

2. Charge for the year

(1) Provision

3. Reductions for the year

(1) Disposals

4.As at 30 June 2021 2241800.00 2241800.00

III. Provision for impairment

1. Balance as at 31 Dec. 2020

2. Charge for the year

(1) Provision

3. Reductions for the year

(1) Disposals

4.As at 30 June 2021

IV. Carrying amount

1. As at 30 June 2021

1. As at 31 Dec. 2020

The carrying amount of intangible assets of the Group arising from internal development is XX% of

the total carrying amount of intangible assets at the end of the year.

（2）Land use rights pending certificates of ownership

Presented in RMB

Reason why certificates of

Item Carrying amount

ownership are pending

27. Development costs

Presented in RMB

Decreased during the year

Additions during the year

As at 31 Dec. As at 30 June

Item Internal

2020 Recognised as Recognised in 2021

development Others

intangible assets profit or loss

Total

28. Goodwill

（1）Book value of goodwill

Presented in RMB

Decreases during the

As at 31 Dec. Additions during the year Name of investee or events from which As at 30 year

goodwill arose 2020 June 2021

Business combination Disposal

Total

（2）Provision for impairment of goodwill

Presented in RMB

Name of investee or events from which As at 31 Dec. Decreases during the As at 30

Additions during the year

goodwill arose 2020 year June 2021

Provision Disposal

Total

Information about the asset group or combination of asset groups in which the goodwill resides

The method of determining goodwill impairment and explain the process and key parameter of goodwill impairment tests:

The impact of goodwill impairment tests:

Other note:

29、Long-term deferred expensePresented in RMB

Additions during the Amortisation for the

Item As at 1 Jan. 2021 Others decreases As at 30 June 2021

year year

Renovation Costs 61667.53 666413.00 49656.77 678423.76

Total 61667.53 666413.00 49656.77 678423.76其他说明

30、Deferred tax assets/Deferred tax liabilities

（1）Deferred tax assets and deferred tax liabilities that are not offset

Presented in RMB

As at 30 June 2021 As at 31 Dec. 2020

Item Deductible or taxable Deductible or taxable

Deferred tax assets Deferred tax assets

temporary temporary

Provisions for

5859920.76 1464980.19 6549009.33 1637252.33

impairment of assets

Unrealised profits of

6745000.27 1686250.07 40305039.22 10076259.81

intra-group transactions

Deductible tax losses 15167917.10 3791979.28 48676321.03 12169080.26

Provision for land

appreciation tax 385775750.47 96443937.62 334846723.41 83711680.85

liquidation reserves

Accrued Contractual cost 3601362.60 900340.64 20603882.91 5150970.73

Total 417149951.20 104287487.80 450980975.90 112745243.98

（2）Deferred tax liabilities without offsetting

Presented in RMB

Item As at 30 June 2021 As at 31 Dec. 20

Deductible or taxable Deductible or taxable

Deferred tax liabilities Deferred tax liabilities

temporary differences temporary differences

Changes in the fair value

of other equity 20046619.77 5011654.94 20046619.77 5011654.94

instrument investments

Interestt not due 18361143.19 4590285.80 18361143.19 4590285.80

Total 38407762.96 9601940.74 38407762.96 9601940.74

（3）Deferred tax assets or deferred tax liabilities disclosed as net amount after offsetting

Presented in RMB

Deferred tax assets or Deferred tax assets or

Amount of offsetting as Amount of offsetting as

Item liabilities after offsetting liabilities after offsetting

at 30 June 2021 at 31 Dec. 2020

as at 30 June 2021 as at 31 Dec. 2020

Deferred tax assets 104287487.80 112745243.98

Deferred tax liabilities 9601940.74 9601940.74

（4）Details of unrecognized deferred tax assets

Presented in RMB

Item As at 30 June 2021 As at 31 Dec. 20

Deductible tax losses 10528755.36 21878078.42

Bad debt provision 221326313.17 217879386.20

Provision for impairment of long-term

220084700.95 220084700.95

equity

Provision for impairment of investment

95824357.78 96673221.03

real estate

Total 547764127.26 556515386.60

（5）Expiration of deductible tax losses for unrecognised deferred tax assets

Presented in RMB

Year As at 30 June 2021 As at 31 Dec. 20 Note

2021 11349323.06

2022 5753184.38 5753184.38

2023 4085485.24 4085485.24

2024 688456.49 688456.49

2025 1629.25 1629.25

2026

Total 10528755.36 21878078.42 --

31. Other non-current assets

Presented in RMB

As at 30 June 2021 As at 31 Dec. 2020

Item Impairment Impairment

Book balance Book value Book balance Book value

loss loss

32. Short-term loans

（1）Classification of short-term loans

Presented in RMB

Item As at 30 June 2021 As at 31 Dec. 20

Pledge loans 70773140.58 76893995.94

Total 70773140.58 76893995.94

Note:

The ending balance of the loan consist of the factoring with accounts receivables and discounted commercial acceptance bill

receivable which is not derecognized.

（2）Past due short-term loans

The total balance of past due short-term loans at the end of the year is RMB 0 including significant

items are as follows:

Presented in RMB

Interest rate Past due period Interest rate if overdue

Lender As at 30 June 2021

33. Trading financial liabilities

Presented in RMB

Item Ending balance Opening balance

Including:

34. Derivative financial liabilities

Presented in RMB

Item Ending balance Opening balance

35、Notes payablePresented in RMB

Kind of Class Ending balance Opening balance

Commercial acceptance bill 330993002.80

Total 330993002.80

The total amount of notes payable due and unpaid at the end of the current period is RMB 0.36. Accounts payable

（1）Accounts payable

Presented in RMB

Item As at 30 June 2021 As at 31 Dec. 2020

Construction 97592538.26 174552420.54

Others 2160147.25 2374193.74

Total 99752685.51 176926614.28

（2）the age of more than 1 year of important accounts payable

Presented in RMB

Reasons for non-payment or

Item As at 30 June 2021

non-carry-forward

37. Advances from customers

（1）Advance payments

Presented in RMB

Item As at 30 June 2021 As at 31 Dec. 2020

Payment for goods-import and export 4218370.69 4218370.69

Others 17118381.99 1721721.46

Total 21336752.68 5940092.15

（2）Important advances received over one year

Presented in RMB

Reasons for non-payment or

Item As at 30 June 2021

non-carry-forward

Other note：

The group shall comply with the disclosure requirements of “Shenzhen Stock Exchange IndustryInformation Disclosure Guidelines No. 3- Listed Companies Engaged in Real Estate Business".The top five advances received:

Presented in RMB

Expected completion

Number Name of project Opening balance Ending balance Pre-sale ratio

date

1 ChuanQi DongHu Building 180760600.38 335596312.38 2019.12.18 97.00%

2 Shengfang CuiLin Building 6227263.00 18075867.00 2018.05.08 92.00%

3 Tian Yue Bay No. 1 16579885.47 18109468.91 2017.12.15 68.00%

4 Tian Yue Bay No. 2 1591883.50 20929599.06 2021.06.30 7.00%

5 YueJing dongfang Project 30000.00 240476.19 2018.04.27 99.00%

38. Contractual liabilities

Presented in RMB

Item As at 30 June 2021 As at 31 Dec. 2020

Advance in house payment 374239736.70 196619100.77

others 798344.85 167876.42

Total 375038081.55 196786977.19

Changes in amount and reason for the change in reporting period:

Presented in RMB

Item Changes in the amount Reason for change

39. Payroll payable

（1）Employee benefits payable

Presented in RMB

Decreased during the

Item As at 31 Dec 2020 Accrued during the year As at 30 June 2021

year

Short-term employee benefits 60375684.92 63088293.97 69084660.06 54379318.83

Post-employment benefits -

92149.17 6984810.72 6984625.92 92333.97

defined contribution plans

Total 60467834.09 70073104.69 76069285.98 54471652.80

（2）Short-term employee benefits

Presented in RMB

Decreased during the

Item As at 31 Dec 2020 Accrued during the year As at 30 June 2021

year

1.Salaries bonus allowances 59181979.88 55058402.34 61277324.19 52963058.03

2.Staff welfare 37800.00 1144676.16 1010917.00 171559.16

3.Social insurances 1850.44 2506432.83 2506432.83 1850.44

Including: Medical

1259.40 2295397.70 2295397.70 1259.40

insurance

Work-related injury

591.04 37106.15 37106.15 591.04

insurance

Maternity insurance 0.00 173928.98 173928.98

4. Housing Fund 583666.83 2975066.91 2975066.91 583666.83

5. Labor union fees staff and

570387.77 1403715.73 1314919.13 659184.37

workers’ education fee

Total 60375684.92 63088293.97 69084660.06 54379318.83

（3）Post-employment benefits - defined contribution plans

Presented in RMB

Decreased during the

Item As at 31 Dec 2020 Accrued during the year As at 30 June 2021

year

Basic pension insurance 75318.93 4760047.65 4760047.65 75318.93

Unemployment insurance 914.12 120268.07 120083.27 1098.92

Annuity 15916.12 2104495.00 2104495.00 15916.12

Total 92149.17 6984810.72 6984625.92 92333.97

Note：

40.Tax payable

Presented in RMB

Item As at 30 June 2021 As at 31 Dec 2020

Value-added tax 2434832.50 2225243.79

Corporate income tax 34021982.45 116073629.88

Individual income tax 775508.90 1067279.80

City maintenance and construction tax 289653.52 240165.30

Property tax 4933089.19 272984.08

Land appreciation tax 455421887.95 339492860.89

Education surcharge 223727.78 192629.99

Others 292327.33 144853.22

Total 498393009.62 459709646.95

Note：

41. Other payables

Presented in RMB

Item As at 30 June 2021 As at 31 Dec 2020

Interest payables 16535277.94 16535277.94

Other payables 565657226.46 260569851.80

Total 582192504.40 277105129.74

（1）Interest payable

Presented in RMB

Item As at 30 June 2021 As at 31 Dec 2020

Non-financial institution borrowing

interest (interest payable to parent 16535277.94 16535277.94

company)

Total 16535277.94 16535277.94

Significant overdue interest outstanding:

Presented in RMB

Debtor Overdue amount Overdue reason

Shenzhen Investment Holdings Co. Ltd. 16535277.94 Defer payment

Total 16535277.94 --

Note:

The loan principal was paid in full on 22 Dec. 2016.

（2）Dividends payable

Presented in RMB

Item As at 30 June 2021 As at 31 Dec 2020

Reason for significant dividends not paid in 1 year:

（3）Other payables

1）Other payables (by nature)

Presented in RMB

Item As at 30 June 2021 As at 31 Dec 2020

Accrued land appreciation tax 33702506.09 59789921.48

Current account to Related parties 18119380.19 18119380.19

Deposits 98629080.12 100280051.56

Borrowings from minority shareholders 331178702.21

Others 84027557.85 82380498.57

Total 565657226.46 260569851.80

2）significant other payables aging over 1 year

Presented in RMB

Item As at 30 June 2021 Reason for no repayment

Note:

On 30 April 2021 the group acquired 51% equity of Guangdong Jianbang group (Huiyang) industrial

Co. LTD while the remaining 49% equity is still held by Guangzhou Bopi enterprise management

consultant company. According to “Cooperative Development Agreement” the group and the Bopi

company need to provide Jianbang with loans based on equity ratio in support of its development. The

Bopi company borrowed 331178702.21 to Jainbang with interest rate at 6%.42. Liabilities held for sale

Presented in RMB

Item As at 30 June 2021 As at 31 Dec 2020

43. Non-current liabilities due within one year

Presented in RMB

Item As at 30 June 2021 As at 31 Dec 2020

44. Other current liabilities

Presented in RMB

Item As at 30 June 2021 As at 31 Dec 2020

Others 18752463.49 8917027.07

Total 18752463.49 8917027.07

Movement in Short-term bonds payable：

Presented in RMB

Interest is Amortizati

The The

Name of Face Release The bond As at 31 accrued on of As at 30

issuance current current

the bond value date deadline Dec 2020 at face excess issue pay June 2021

value discount

Note:According to new revenue standard the VAT of advance received is adjusted to “other currentliabilities” in current reporting period..45. Long-term loans

（1）Long-term loans classification

Presented in RMB

Item As at 30 June 2021 As at 31 Dec 2020

Note:

46. Debentures payable

（1）Debentures payable

Presented in RMB

Item As at 30 June 2021 As at 31 Dec 2020

（2）Changes in increase or decrease of bonds payable (excluding preferred stock perpetual debt and other

financial instruments classified as financial liabilities)

Presented in RMB

Interest is Amortizati

Name of The The Face Release The bond As at 31 accrued on of As at 30

issuance current current

the bond value date deadline Dec. 20 at face excess issue pay June 2021

value discount

Total -- -- --

（3）Convertible corporate bonds(Convertible company bonds conversion conditions conversion time)

（4）Other financial instruments classified as financial liabilities

Basic information on preferred stock perpetual debt and other financial instruments outstanding at the

end of the period:

Statement of changes in preferred shares perpetual bonds and other financial instruments outstanding

at the end of the period:

Presented in RMB

An The reduced in current 2020.12.31 Increase in current period 2021.6.30

period

outstanding

The number The book The number The book The number The book The number The book

financial of value of value of value of value

47. Lease liabilities

Presented in RMB

Item As at 30 June 2021 As at 31 Dec 2020

48、Long-term payablesPresented in RMB

Item As at 30 June 2021 As at 31 Dec 2020

Long-term payables 8245567.40 7480233.43

Total 8245567.40 7480233.43

（1）Long-term payables (shown by nature of payments)

Presented in RMB

Item As at 30 June 2021 As at 31 Dec 2020

Maintenance fund 8245567.40 7480233.43

（2）Special payables

Presented in RMB

Reasons for the

Item As at 31 Dec 2020 Increase in current The reduced As at 30 June 2021

formation

49. Long-term employee benefits payable

（1）Long-term employee benefits payable

Presented in RMB

Item As at 30 June 2021 As at 31 Dec 2020

（2）Set the changes of benefit plan

Set the present value of the benefit plan obligation:

Presented in RMB

Item This amount The amount of the previous period

Plan assets

Presented in RMB

Item This amount The amount of the previous period

Defined benefit plan net liabilities (net assets) :

Presented in RMB

Item This amount The amount of the previous period

The content causes characteristics and related risks of the defined benefit plan and the influence of

the benefit plan on the amount time and uncertainty of the Group's future cash flow.Actuarial hypothesis and Sensitivity analysis of setting benefit plan:

Other note:

50. Provisions

Presented in RMB

Item As at 30 June 2021 As at 31 Dec 2020 Causes

Note:

51. Deferred income

Presented in RMB

Additions during t Reductions during Reason for deferra

Item As at 31 Dec 2020 he year the year As at 30 June 2021 l

details of deferred income – government grant:

Presented in RMB

Amount Amount The amount

booked into booked into of the current

New subsidy Relating to

As at 31 Dec non-operatin other income period carried other As at 30 June

species amount of assets/earnin

2020 g income for for the forward to change 2021

this period gs

the current current reduce

period period related costs

52. Other non-current liabilities

Presented in RMB

Item As at 30 June 2021 As at 31 Dec 2020

53、Share capitalPresented in RMB

Increase or decrease of current period (+ -)

As at 31 Dec

Conversion from As at 30 June 2021

2020 New shares Stock dividan dr eserve to share Others Subtotal

The total

number of 1011660000.00 1011660000.00

54. Other equity instruments

（1）Basic information on preferred stock perpetual debt and other financial instruments outstanding at

the end of the period:

（2）movement on preferred stock perpetual debt and other financial instruments outstanding at the end

of the period:

Presented in RMB

issued As at 31 Dec 2020 Increase in The reduced As at 30 June 2021

Financial

Numbers Book value Numbers Book value Numbers Book value Numbers Book value

instruments

the change of the increase or decrease of other equity instruments in the current period the reasons

for the change and the relevant accounting treatment basis.55. Capital reserves

Presented in RMB

The reduced in current

Item As at 31 Dec 2020 Increase in current period As at 30 June 2021

period

Share premium 557433036.93 557433036.93

Other capital reserves 420811873.18 420811873.18

Total 978244910.11 978244910.11

Reason for movements in capital reserves:

56. Inventory stocks

Presente

The reduced in current

Item As at 31 Dec 2020 Increase in current period As at 30 June 2021

period

Reason for movements in capital reserves:

57. Other comprehensive income

Presented in RMB

Current amount

Less: the Less: the Attributa Attributa

amount amount ble to the ble to the

counted to counted to parent parent

the profit and the profit company company

loss during and loss after tax after tax

the reporting during the Attributa Attributa

period which reporting ble to ble to

The had been period minority minority

Less: As at 30

As at 31 current Less: the which had sharehold sharehold

Item Income June

Dec 2020 income tax amount been Less: ers after ers after

tax 2021

before the counted to the tax tax

expense

amount the retained amount

earnings counted to

during the the

reporting retained

period earnings

during the

reporting

period

I. Other comprehensive income

15034964. 570414.6 570414.6 156053

that cannot be reclassified into

83 7 7 79.50

profits and losses

Changes in the fair value of

15034964. 570414.6 570414.6 156053

other equity instrument

83 7 7 79.50

investments

II.Other comprehensive income

13128085. 582982.6 582982.6 -693845.5 137110

which is reclassified into profit 0.00 0.00

30 1 1 9 67.91

and loss

Translation differences

13128085. 582982.6 582982.6 -693845.5 137110

arising from translation of foreign

30 1 1 9 67.91

currency financial statements

28163050. 1153397. 1153397. -693845.5 293164

Total 0.00 0.00

13 28 28 9 47.41

58. Specific reserve

Presented in RMB

Reductions during the

Item As at 31 Dec 2020 Additions during the year As at 30 June 2021

year

Reason for changes in specific reserve in current period:

59、Surplus reservePresented in RMB

Item As at 31 Dec 2020 Additions during the year Reductions during the year As at 30 June 2021

Statutory surplus reserve 218724273.67 218724273.67

Total 218724273.67 218724273.67

Note: According to the "Company Law" and the company's articles of association the company

appropriates a statutory surplus reserve at 10% of its net profit. It will no longer be appropriated if the

accumulative amount of statutory surplus reserve reaches more than 50% of the company's registered

capital

60. Retained earnings

Presented in RMB

Item Year ended 30 June 2021 Year ended 30 June 2020

Before adjustment: Retained earnings at the end of

1560720254.31 1464915816.81

the previous period

After adjustment: Retained earnings at the

1560720254.31 1464915816.81

beginning of the reporting period

Add: Net profits for the year attributable to

132447122.14 97274985.72

shareholders of the Group

Dividends payable to ordinary shares 88014420.00 166923900.00

Retained earnings at the end of the reporting

1605152956.45 1395266902.53

period

Adjustments on beginning retained earnings are as follows:

1). Retrospective adjustments of RMB 0.00 made on beginning retained earnings in accordance with

CAS and related new regulations.2). RMB 0.00 on beginning retained earnings due to changes in accounting policies.3). RMB 0.00 on beginning retained earnings due to corrections of significant accounting errors.4). RMB 0.00 on beginning retained earnings due to changes in consolidation scope resulting from

business combinations involving entities under common control.5). RMB 0.00 on beginning retained earnings due to other adjustments.61. Operation Income and Costs

Presented in RMB

Year ended 30 June 2021 Year ended 30 June 2020

Item

Income costs Income costs

Principal activities 689047393.48 330844214.47 592168994.82 342975012.09

Other operating activities 5550824.99 1131464.08 4089500.58 933075.37

Total 694598218.47 331975678.55 596258495.40 343908087.46

Income related information:

Presented in RMB

Contract type Segment 1 Segment 2 Total

Information related to performance obligations:

There are four criteria need to be satisfied when the group recognizing the revenue from property sales:

(1) the sale contract has been signed and filed with the land department; (2) the property development

is completed and pass the acceptance; (3) For Lump-sum payment revenue is recognized by the group

when the consideration is fully received. For instalment payment revenue is recognized when the first

installment has been received and the bank mortgage approval procedures have been completed. (4)

completed the procedures for entering the partnership in accordance with the requirements stipulated

in sale contract.Information related to the transaction price allocated to the remaining performance obligations:

At the end of the reporting period the amount of revenue corresponding to the performance

obligations that have been signed but not yet performed or not yet completed is RMB 515922852.72

yuan Among them RMB 400000000.00 yuan is expected to be recognized as revenue in 2021 RMB

115922852.72 is expected to be recognized as revenue in the year 2022 and RMB 0 yuan is expected

to be recognized as revenue in the year.Note: The company complies with the disclosure requirements of "Shenzhen Stock Exchange Industry

Information Disclosure Guidelines No. 3-Listed Companies Engaged in Real Estate Business"

Information of the top five projects that the revenue recognized during the reporting period:

Presented in RMB

No. Project Income amount

1 ChuanQi DongHu Building 429251936.21

2 Shengfang CuiLin Building 11483673.34

3 TianYue Bay No.1 38827292.52

4 YueJing dongfang Project 394038.10

5 Jinye Island 0

62. Taxes and surcharges

Presented in RMB

Item Current amount Amount of previous period

Urban maintenance and construction tax 2116459.71 1825068.95

Education surcharge 939297.22 811262.23

Property tax 4661338.71 2110622.87

Land use tax 53795.62 107733.28

Vehicle and vessel usage tax 6030.00 4710.00

Stamp duty 380892.76 213285.17

Land appreciation tax 138238943.94 79824750.12

Local education surcharge 569112.63 491930.13

Embankment protection fees 393247.80 218750.12

Total 147359118.39 85608112.87

Note: the tax and additional payment standards are detailed in Note VI. Tax.63. Selling and distribution expense

Presented in RMB

Item Current amount Amount of previous period

Employee benefits 1989941.91 2823089.29

Advertising expenses 1917769.32 1284043.70

Entertainment expenses 250432.76 238746.50

commissions 9360189.39 3615467.32

Others 3297266.68 575101.57

Total 16815600.06 8536448.38

Note:

64. General and administrative expenses

Presented in RMB

Item Current amount Amount of previous period

Employee benefits 30479393.18 33335370.04

Taxes

Depreciation 1394723.83 1362176.52

Entertainment expenses 1342134.54 820263.83

Professional fee 980491.44 337923.08

Travel expense 33943.63 16813.77

Office expenses 998969.38 628812.36

Maintenance expenses 395206.71 395651.84

Utilities 278307.83 190945.62

Amortization 227695.45 150041.78

Others 4168718.23 3015978.42

Total 40299584.22 40253977.26

Note：

65. Research and development expense

Presented in RMB

Item Current amount Amount of previous period

66. Financial expense

Presented in RMB

Item Current amount Amount of previous period

Interest expense 38742.51

Less: Interest income 16398025.57 5932973.60

Less: capitalized interest

Exchange losses/-gains -201900.59 -28526.54

Less: Exchange losses and gains

capitalized

Others 185438.57 213914.16

Total -16414487.59 -5747585.98

67. Other Income

Presented in RMB

Item (Source of other income) Current amount Amount of previous period

Input VAT deduction 643733.52 557379.14

68. Investment Income

Presented in RMB

Item Current amount Amount of previous period

Financial product 15217058.60

Total 15217058.60

69. Net exposure hedging income

Presented in RMB

Item Current amount Amount of previous period

70. Income from changes in fair value

Presented in RMB

The source of the fair value change income Current amount Amount of previous period

Trading financial assets 2329484.00

Total 2329484.00

Note:

The group purchased monetary fund at 13 billion yuan in early June 2021 and one month income is

2329484.00 yuan.71. Credit impairment loss

Presented in RMB

Item Current amount Amount of previous period

Bad debt losses on other receivables 1142580.28

Total 1142580.28

72. Impairment loss of assets

Presented in RMB

Item Current amount Amount of previous period

Bad debt loss 534500.00

Total 534500.00

73. Income from asset disposal

Presented in RMB

Source of asset disposal Current amount Amount of previous period

74. Non-operating income

Presented in RMB

Item Current amount Amount of previous period Amount booked into current

non-recurring profits and

losses

Government subsidies 2792616.39

Confiscated income 1352709.50 70000.00

Others 18048.38 39417.38

Total 1370757.88 2902033.77

Government subsidy counted to the current profit and loss:

Presented in RMB

Does the

subsidy affect Whether Relating to

Reason for Subsidy Amount of Current

Item Issuer the profit and special previous assets or

issue nature amount period

loss of the subsidy earnings

year

75. Non-operating expenses

Presented in RMB

Amount counted to the current

Item Current amount Amount of previous period

non-operating gain and loss

Donations provided 500000.00

Others 25246.47 1501278.48

Total 25246.47 2001278.48

76. Income tax expense

（1）Details of income tax expenses

Presented in RMB

Item Current amount Amount of previous period

Current tax expense for the year 47841099.11 43599689.97

Total 47841099.11 43599689.97

（2）Reconciliation between income tax expenses and accounting profit is as follows:

Presented in RMB

Item Current amount

Profits/losses before tax 180024034.05

Expected income tax expenses at applicable tax rate 45006008.51

Effect of different tax rates applied by subsidiaries 0.00

Effect of non-deductible costs expenses and losses 2835090.60

Income tax expenses 47841099.11

77. Other comprehensive income

Refer to Note VII. 57 for details.78. Cash Flow Statement

（1）Proceeds from operating activities

Presented in RMB

Item Current amount Amount of previous period

Interest income 16145175.19 5407752.35

Deposits and security deposits 4840752.27 2919486.01

Maintenance Fund 48921.12 588849.58

Collecting fee for certifications on behalf 196503.48 259013.65

Others 226919277.33 33335274.12

Total 248150629.39 42510375.71

Note to Proceeds from other operating activities:

（2）Payment for other operating activities

Presented in RMB

Item Current amount Amount of previous period

Payment for general and administrative

5877859.14 5953780.78

expenses

Payment for selling and distribution

12305839.37 10827564.54

expenses

Deposits and security deposits 3809037.95 2573686.00

Paying fee for certifications on behalf 46643.34 75218.11

Others 324877972.54 89300550.71

Total 346917352.34 108730800.14

Note to payment for other operating activities:

（3）Proceeds from other investing activities

Presented in RMB

Item Current amount Amount of previous period

Restricted cash recovered in the current

1000000000.00

period – structured deposit

Total 1000000000.00

Note to proceeds from other investing activities:

（4）Payment for other investing activities

Presented in RMB

Item Current amount Amount of previous period

Purchasing monetary fund 1300000000.00

Total 1300000000.00

Note to payment for other investing activities:

The group purchased 13billions yuan monetary fund in June 2021.

（5）Proceeds from other financing activities

Presented in RMB

Item Current amount Amount of previous period

Borrowing from minority shareholders 331178702.21

Total 331178702.21

Note to proceeds from other financing activities:

One of shareholder (Guangzhou Bopi) of Jianbang company lent 331178702.21 yuan to Jianbang.

（6）Payment for other financing activitie

Presented in RMB

Item Current amount Amount of previous period

Note to payment for other financing activities:

79. Supplementary information of the cash flow statemen

（1）supplementary information of the cash flow statement

Presented in RMB

Amount of

Supplementary information Current amount

previous period

1. Adjust net profit to cash flow from operating activities: -- --

Net profit 132182934.94 97309458.47

Add: Provisions for impairment of assets

Depreciation of Fixed Assets Depreciation of Investment Real Estate

13557880.81 13145126.03

Depreciation of Oil and Gas Assets Depreciation of Productive Biological Assets

Depreciation of Usability Assets

Amortization of intangible assets

Amortization of long-term prepaid expenses 59919.67 59662.86

Loss on disposal of fixed assets intangible assets and other long-term assets

-10871.50

(marked with "-" for gains)

Loss on the scrapping of fixed assets (marked with "-" for income) 1598.00 17829.60

Loss from changes in fair value (marked with "-" for earnings) -2329484.00

Financial expenses (revenue marked with "-") -2274549.67 3135908.80

Loss on investment (marked with "-" for income) 0.00 -15217058.60

Deferred tax assets decreased (marked with "-" for increase) 8457756.18 7327401.98

Deferred tax liability increased (marked with "-" for decrease) 0.00 -4903293.58

Decrease in stock (marked with "-" for increase) -799115376.98 186722872.58

Decrease of operating receivable items (marked with "-" for increase) 201580001.54 -225749300.15

Increase in operational payable items (marked with "-" for decrease) 162251243.69 -274147130.87

Other 98195.86 55724.29

Net cash flow from operating activities -285540751.46 -212242798.59

2. Major investment and financing activities that do not involve cash receipts and

-- --

expenditures:

Debt to capital

A convertible corporate bond maturing within one year

Leasing of fixed assets through financing

3. Net changes in cash and cash equivalents: -- --

Ending balance of cash 876192880.75 2148222433.87

Minus: Opening balance of cash 2669103926.82 1507189760.35

Plus: ending balance of cash equivalents

Minus: Beginning balance of cash equivalents

Net increase in cash and cash equivalents -1792911046.07 641032673.52

（2）The net cash of the subsidiary paid in the current period

Presented in RMB

Item Amount

Businesses incurred in the current period are consolidated into cash or cash equivalents

450000000.00

paid in the current period

Including： --Less: Cash and cash equivalents held by the Group on the date of purchase 118241.85

Including： --To obtain the net cash amount paid by the subsidiary 449881758.15

Note:

On 30 April 2021 the group acquired 51% equity of Guangdong Jianbang Group (Huiyang) Industrial Co. Ltd.at 45000 ten

thousand yuan.

（3）Net cash received for disposal of subsidiaries during the current period

（4）Composition of cash and cash equivalents

Presented in RMB

Item Ending balance Opening balance

Cash 876192880.75 2669103926.82

Closing cash and cash equivalents balance 876192880.75 2669103926.82

80. Notes for items in the statement of changes in shareholders' equity

Note of the nature and amount of adjustment of "other" items adjusting the balance at the end of last

year.81. Assets whose ownership or use rights are restricted

Presented in RMB

Item Ending book value Limited reason

endorse or discount a commercial

Notes receivable 7818054.79

acceptance bill before maturity

Accounts receivable 62955085.79 Short-term loan pledge

Total 70773140.58 --

82. Foreign currency monetary items

（1）Foreign currency monetary items

Presented in RMB

Ending Foreign Currency Balance converted into RMB at

Item Discount rate

Balance the end

Monetary fund -- --

Including: US dollar 40345.54 6.4578 260543.43

The euro

Hong Kong dollars 7447992.80 0.8320 6197102.41

Accounts receivable -- --

Including: US dollar

The euro

Hong Kong dollars 4905150.10 0.8320 4081330.14

Long-term borrowing -- --

Including: US dollar

The euro

Hong Kong dollars

Other receivables

Including: US dollar --

Hong Kong dollars 20165086.70 0.8320 16778360.39

Other payables

Including: US dollar 655299.33 6.4578 4231792.01

Hong Kong dollars

Note:

The company’s important overseas business entities are Great Wall Real Estate Co. Ltd. and Xinfeng

Enterprise Co. Ltd. Since Great Wall Real Estate Co. Ltd. is mainly operating in the United States it

chooses the US dollar as the functional currency; Xinfeng Enterprise Co. Ltd. is an investment

company the main business activities of its investment entities are all in mainland China and the RMB

is used as the standard currency for bookkeeping so it chooses RMB as the standard currency for

bookkeeping.

（2）Note to overseas operating entities including important overseas operating entities which should be

disclosed about its principal business place function currency for bookkeeping and basis for the choice. In

case of any change in function currency the cause should be disclosed.□ Applicable √ Not Applicable

83. Hedging

The qualitative and quantitative information of the hedge item the related hedge instrument and

the hedged risk shall be disclosed according to the hedge Types.84. Government subsidies

（1）Basic information of government subsidies

Presented in RMB

Amount counted to the current

Categories Amount Items presented

profit and loss

（2）Refunding of the government subsidies

□ Applicable √ Not Applicable

85．Other

VIII．Change of consolidation scope

1． Business combinations involving enterprises not under common control

（1）Business combinations involving enterprises not under common control occurred during the year

Presented in RMB

Acquiree’s in Acquiree’s net

Acquisition Basis of acq come from a profit from

Cost of equity Shareholding Acquisition Acquisition d

Acquiree date of equity uisition date cquisition dat acquisition

investment acquired % method ate

investment determination e to 2021.6.3 date to

0 2021.6.30

（2）Acquisition cost and goodwill

The method for determining the fair value of the combined cost and the note to Contingent

consideration and its movement:

The main reason for the formation of large amount of goodwill：

Other Note：

（3）Identifiable assets and liabilities of the acquiree at the acquisition date

The method of determining fair value of identifiable assets and liabilities:

The contingent liability of the acquiree assumed in business combination:

Other note：

（4）Gain or loss from remeasurement of equity interests held prior to acquisition date to fair value

Whether there are multiple transactions to achieve the business merger step by step and gain control

during the reporting period

□ Yes √ No

（5）If it is impossible to reasonably determine the merger consideration or the fair value of the assets and

liabilities recognized by the purchaser on the purchase date or at the end of the current period the Group

shall disclose the fact and reasons.

（6）Other Note

2. Business combinations involving enterprises under common control

（1）Business combinations involving enterprises under common control during the period

Presented in RMB

Basis for Income from

Proportion of business the beginning Net profit

Basis for

equity combination of the year to from the

determination Acquiree’s Acquiree’s net

interests under Combination the beginning of

Acquiree of income for profit for

acquired in common date combination the year to the

combination half-year 2020 half-year 2020

business control date combination

date

combination date

（2）Combination cost

Note to contingent consideration and its movement:

Other note：

（3）Book value of merged party’s assets and liabilities in combination date

The contingent liabilities of the merged party assumed in a business combination:

Other note：

3. Reverse buying

Basic Trading information the basis of reverse purchase whether the assets and liabilities retained by

the listed company and its judgment and determination method of the combination costs transaction

confirmation of goodwill or accounted for as current profit or loss or adjust the amount of rights and

its calculation process:

4. Disposal of subsidiaries

Whether subsidiaries reduced due to single disposal until loss of control

□ Yes √ No

Whether exist multiple transactions to dispose of the equity step by step to the loss of control and the

reduction of the subsidiary

□ Yes √ No

5. Other reason for change of consolidation scope

Explain the changes in the scope of the merger caused by other reasons (such as the establishment of a

new subsidiary or liquidation of a subsidiary)：

At 30April 2021 the Group signed “Cooperative Development Agreement” and “managemententrusting agreement” with relevant parties and decided to purchase 51% equity of Guangdong

Jianbang Group (Huiyang) Industrial Co. Ltd.(abbr: Jianbang company) which is held by Guangzhou

Bopi Enterprise Management Consulting Co. LTD using its own funds at 450000000.00 yuan. At 11

May 2021 transacting parties completed the registration of shareholding change according to the

contract Jianbang company is under the group’s actual control after the transaction.The group has rights to variable returns from its involvement with the Jiangbang company and has the

ability to affect its returns through its power over the Jianbang. The essence of this acquisition is

mainly to obtain products to be developed and products in progress which are main assets of the

Jianbang company.6. Other

IX. Interest in other entities

1． Interests in subsidiaries

（1）Composition of the Group

Shareholding

Principal Registrat

Business %

Name place of ion Acquisition method

nature

business place IndireDirect

Shenzhen City SPG Long Gang Real estate Acquiring through

Shenzhen Shenzhen 95.00% 5.00%

Development Ltd. development establishment or investment

Real estate Acquiring through

American Great Wall Co. Ltd U.S. U.S. 70.00%

development establishment or investment

Shenzhen City Property Management Property Acquiring through

Shenzhen Shenzhen 95.00% 5.00%

Ltd. management establishment or investment

Acquiring through

Shenzhen Petrel Hotel Co. Ltd. Shenzhen Shenzhen Hotel Services 68.10% 31.90%

establishment or investment

Shenzhen Zhen Tung Engineering Installation and Acquiring through

Shenzhen Shenzhen 73.00% 27.00%

Ltd. maintenance establishment or investment

Shenzhen City We Gen Construction Acquiring through

Shenzhen Shenzhen Supervision 75.00% 25.00%

Management Ltd. establishment or investment

Mechanical & Acquiring through

Shenzhen Lain Hua Industry and

Shenzhen Shenzhen Electrical device 95.00% 5.00% establishment or investment

Trading Co. Ltd.installation

Hong Hong Investment and Acquiring through

Fresh Peak Zhiye Co. Ltd. 100.00%

Kong Kong management establishment or investment

Hong Hong Investment and Acquiring through

Xin Feng Enterprise Co. Ltd. 100.00%

Kong Kong management establishment or investment

Shenzhen City Shenfang Free Trade Commercial Acquiring through

Shenzhen Shenzhen 95.00% 5.00%

Trading Ltd. trade establishment or investment

Shenzhen City Shenfang Investment Acquiring through

Shenzhen Shenzhen Investment 90.00% 10.00%

Ltd. establishment or investment

Shenzhen Special Economic Zone Acquiring through

Real estate

Real Estate (Group) Guangzhou Shenzhen Shenzhen 95.00% 5.00% establishment or investment

development

Property and Estate Co. Ltd.Beijing fresh peak property Beijing Beijing Acquiring through

development management limited Real estate 75.00% 25.00% establishment or investment

company

Note to shareholding ratio is different from the voting ratio in subsidiaries:

The basis of holding half or less of the voting rights but still controlling the investee and holding more

than half of the voting rights but not controlling the investee:

The basis for controlling significant structured entities in the scope of merger:

The basis for determining whether a company is an agent or a principal：

Other note：

①In consolidation scope there are five subsidiaries in “revoked but not cancelled” condition: Beijing

SPG Property Management Limited Guangzhou Huangpu Xizun real estate limited company

Shenzhen Special Economic Zone Real Estate (Group) Guangzhou Property and Estate Co. Ltd.Fresh Peak Real Estate Dev. Construction (Wuhan) Co. Ltd. and Beijing Shenfang Property

Management Co. Ltd. They are presented on the basis of discontinued operations; these five

subsidiaries have made full provision for impairment of debt for the companies outside the

consolidation scope.②The cancelled revoked and closed subsidiaries of the Company that are not included in the scope of

consolidation are as follows:

Principal Shareholding proportion

Registrati Business

Name place of Way of acquisition

on place nature

business Direct Indirect

Shenzhen Shenfang Shenzhen Shenzhen Commerci 95.00 5.00 Acquiring through

Department Store Co. Ltd al trade establishment or investment

Paklid Limited Hong Hong Commerci 60.00 40.00 Acquiring through

Kong Kong al trade establishment or investment

Bekaton Property Limited Australia Australia Real 60.00 -- Acquiring through

estate establishment or investment

Canada Great Wall Canada Canada Real -- 60.00 Acquiring through

(Vancouver) estate establishment or investment

Guangdong Fengkai Fengkai Fengkai Manufact -- 90.00 Acquiring through

County Lianfeng Cement Guangdon Guangdon uring establishment or investment

Manufacturing Co. Ltd. g g

Jiangmen Xinjiang Real Jiangmen Jiangmen Real -- 90.91 Acquiring through

Estate Co. Ltd Guangdon Guangdon estate establishment or investment

g g

Xi’an Fresh Peak Property Xi’an Xi’an Real -- 67.00 Acquiring through

Trading Co. Ltd Shanxi Shanxi estate establishment or investment

Shenxi Limited Shenzhen Shenzhen Building 70.00 -- Acquiring through

Decoratio establishment or investment

Shenzhen Zhentong New Shenzhen Shenzhen Mechanic 95.00 5.00 Acquiring through

Electromechanical Industry al and establishment or investment

Development Co. Ltd. electrical

engineerin

Shenzhen Real Estate Shenzhen Shenzhen Electrome 100.00 -- Acquiring through

Electromechanical cha nical establishment or investment

Management Company Managem

ent

Shenzhen Nanyang Hotel Shenzhen Shenzhen Hotel 95.00 5.00 Acquiring through

Co. Ltd. Managem establishment or investment

ent

Shenzhen Kangtailong Shenzhen Shenzhen Industrial -- 100.00 Acquiring through

Industrial Electric Cooker manufactu establishment or investment

Co. Ltd. ring

Shenzhen Longgang Shenzhen Shenzhen Industrial -- 79.92 Acquiring through

Henggang Huagang Investmen establishment or investment

Industrial Co. Ltd. t

Note：

1. Shenzhen Shenfang Department Store Co. Ltd called a shareholder meeting on 29 October 2007

decided to terminate the business and establish a liquidation team to conduct the liquidation. The

liquidation team issued a liquidation report on 7 December 2007.2. Paklid Limited Bekaton Property Limited and Canada Great Wall (Vancouver) were established by

the group abroad in the early years. On 13 December 2000 the group held a board meeting and

decided to liquidate these three companies. Bekaton Property Limited and Canada Great Wall

(Vancouver) have been winded up.3. All assets from Guangdong Fengkai County Lianfeng Cement Manufacturing Co. Ltd. (including

tangible and intangible asset) were auctioned by the court on 22 January 2019 becoming a shell

company.4. Shenxi Limited was a holding subsidiary of Shenzhen Tefa Real Estate Consolidated Services Co.Ltd. which is a deregistered subsidiary of the group. By the Group’s announcement “The notice onthe merger of Shenzhen Zhen Tung Engineering Ltd and Shenxi Limited” (Shenfang [1997] No.19)

all businesses form Shenxi Limited were undertaken by Shenzhen Zhen Tung Engineering Ltd and

Shenxi Limited and were revoked on 8 February 2002.The group could no longer effectively control these invested companies which have not been included

in the consolidation scope were either been cancelled or ceased operation many years ago and were nolonger exist. According to “Accounting Standard for Business Enterprises No. 33-ConsolidatedFinancial Statements” the group already accrued full amount of impairment for the book value of the

net investment in above companies which are not included in the consolidated scope.

（2）Material non-wholly owned subsidiaries

Presented in RMB

Proportion of ownershi Dividend declared to Balance of

Profit or loss allocated

p interest held by no non-controlling non-controlling

Name to non-controlling int

n-controlling interests shareholders during interests as at

erests during the year

% the year 2021.6.30

Guangdong Jianbang Group

49.00% -225833.76 432167344.39

(Huiyang) Industrial Co. Ltd.Great Wall Estate Co. Inc 30.00% -38353.44 -20397557.81

Fresh Peak Investment Ltd 45.00% -1419.08 -116180431.36

Barenie Co. Ltd. 20.00% 47.62 -3886968.79

Note to shareholding ratio of minority shareholder is different from the voting ratio:

Note:

（3）Key financial information about material non-wholly owned subsidiaries

Presented in RMB

As at 30 June 2021 As at 30 June 2020

Non-curr Current Non-curr Total Non-curr Current Non-curr Total

Name Current Total Current Total

ent liabilities ent liabilities ent liabilities ent liabilities

assets assets assets assets

assets liabilities assets liabilities

Guangdo 102309 102310 102465 102465 282015 282015 282685 282685

8935.68 0.00 0.00 0.00

ng 3139.34 2075.02 1992.31 1992.31 748.59 748.59 044.37 044.37

Jianbang

Group

(Huiyang

)

Industria

l Co.Ltd.Great

Wall 260543. 178425 181031 100382 100382 135920. 180279 181639 101822 101822

0.00 0.00

Estate 43 91.43 34.86 145.99 145.99 52 85.50 06.02 102.87 102.87

Co. Inc

Fresh

Peak 36016.9 40777.5 258219 258219 36016.9 40785.9 258216 258216

4760.68 0.00 4769.05 0.00

Investm 0 8 596.96 596.96 0 5 451.81 451.81

ent Ltd

Barenie 328951 328951 328954 328954

974.33 0.00 974.33 0.00 985.56 0.00 985.56 0.00

Co. Ltd. 88.97 88.97 38.31 38.31

Presented in RMB

Year ended 2021.6.30 Year ended 2020.6.30

Cash flows Cash flows

Name Total compre Total compre

Operating from Operating from

Net profit hensive inco Net profit hensive inco

income operating income operating

me me

activities activities

Guangdong

Jianbang

Group -666756866.0.00 -880621.51 -880621.51

(Huiyang) 68

Industrial

Co. Ltd.Great Wall

Estate Co. 260141.10 -127844.80 -127844.80 128668.43 142264.71 114909.18 114909.18 114087.11

Inc

Fresh Peak

Investm ent 0.00 -3153.52 -3153.52 0.00 0.00 -15714.16 -15714.16 0.00

Ltd

Barenie Co.0.00 238.11 238.11 0.00 0.00 -15775.13 -15775.13 0.00

Ltd.（4）Material restriction on the use of the Group’s assets and the settlement of the Group’s liabilities

（5）Financial support or other support provided to structured entities included in the scope of the

consolidated financial statements

2. Transactions that cause changes in the Group’s interests in subsidiaries that do not result in loss of

control

（1）① Changes in the Group’s interests in subsidiaries:

（2）Impact from transactions with non-controlling interests and equity attributable to the shareholders of

the Group:

3. Interests in joint ventures or associates

（1）Material joint ventures or associates

Name Principal place of Registration place Business nature Shareholding (%) Accounting

business treatment of

Direct Indirect

investments in

joint ventures or

associates

Note to shareholding ratio is different from the voting ratio in Joint ventures or associates:

The basis of holding less than 20% of the voting rights but still has a material impact on and holding

more than 20% of the voting rights but do not have a material impact on:

（2）Key financial information of material joint ventures:

（3）Key financial information of material associates:

（4）Summarized financial information of immaterial joint ventures and associates:

Presented in RMB

Ending balance/amount incurred in the Opening balance/amount incurred in the

reporting period reporting period

Joint ventures: -- --

Aggregate carrying amount of investments 377489.68 377489.68

Aggregate amount of share of -- --

Associates: -- --

Aggregate amount of share of -- --

Net profit -92348.97

（5）Material restrictions on transfers of funds from investees to the Group

（6）Excess loss from joint ventures or associates

Presented in RMB

Accumulated unrecognized Unrecognized loss (or share of Accumulated unrecognized

Investee

loss in prior periods net profit)for the year loss as at 2021.6.30

Shenzhen Fresh Peak property

1095961.55 1121994.34 2217955.89

consultant Co. Ltd

Note:

Shenzhen Fresh Peak property consultant Co. Ltd was established on 15 March 1993 with registered

capital of 3000000 yuan. The group subscribed RMB 600000 (20% in total capital). As at 30 June

2021 the group contributed RMB 600000 and already confirmed long-term equity invent lose RMB

600000.

（7）Unrecognized commitments in connection with its investment in joint ventures

（8）Contingent liabilities in connection with its investment in joint ventures or associates

4. Material joint operations

Principal place of Shareholding/Share of net assets (%)

Name Registration place Business nature

business Direct Indirect

Note to shareholding ratio is different from the voting ratio in Joint operations:

The basis of classifying separate entities as joint operation:

Other note:

5、Interests and interests in structured entities not included in the scope of consolidated financial statementsNote to structured entities not included in the scope of consolidated financial statements:

6. Other

X. Risk Management of Financial Instruments

The Group's main financial instruments include the monetary funds notes receivable other receivables

Other current assets accounts receivable other equity instrument investments accounts payable other

payables short-term borrowing long-term payables. Details of the various financial instruments are

disclosed in the relevant notes. The risks associated with these financial instruments and the risk

management policies adopted by the Group to mitigate these risks are described below. The

management of the Group manages and monitors these exposures to ensure that these risks are

contained within the limits specified.1、Risk management objectives and policiesThe Group's goal in risk management is to strike an appropriate balance between risks and benefits

and strive to reduce the adverse impact of financial risks on the Group's financial performance. Based

on this risk management objective the Group has developed a risk management policy to identify and

analyze the risks faced by the Group set an appropriate acceptable risk level and design the

corresponding internal control procedures to monitor the risk level of the Group.The Group regularly

reviews these risk management policies and the relevant internal control systems to adapt to market

conditions or changes in the Group's business activities. The Group's internal audit department also

regularly or randomly checks whether the implementation of the internal control system complies with

the risk management policy.The main risks arising from the Group's financial instruments are credit risk liquidity risk market risk

(including exchange rate risk interest rate risk and commodity price risk).The Board of Directors is responsible for planning and establishing the Group's risk management

structure formulating the Group's risk management policies and relevant guidelines and overseeing the

implementation of risk management measures. The Group has developed risk management policies to

identify and analyze the risks faced by the Group. These risk management policies clearly stipulate

specific risks covering market risk credit risk liquidity risk management and many other aspects. The

Group regularly evaluates changes in the market environment and the Group's business activities to

determine whether to update its risk management policies and systems.The Group diversifies the risks of financial instruments through appropriate diversification of its

portfolio of investments and businesses and reduces the risk of concentration in a single industry a

specific region or a specific counterparty through the development of appropriate risk management

policies.

（1）Credit risk

Credit risk refers to the risk of financial loss to the Group resulting from the failure of the

counterparty to fulfill its contractual obligations.The Group manages credit risks according to portfolio classification. Credit risks mainly arise from

bank deposits notes receivable accounts receivable other receivables.The Group's bank deposits are mainly held in state-owned banks and other large and medium-sized

listed banks (or mainly in financial institutions with good reputations and high credit ratings) and the

Group does not expect that the bank deposits will pose a significant credit risk.For notes receivable accounts receivable other receivables and long-term receivables the Group sets

policies to control credit risk exposure. The Group evaluates customers' credit qualifications and sets

credit periods based on their financial status credit history and other factors such as current market

conditions. The Group will regularly monitor the credit records of customers. For customers with poor

credit records the Group will use written methods to urge payment shorten the credit period or cancel

the credit period to ensure that the overall credit risk of the Group is within a controllable range.The debtors of the Group's accounts receivable are customers distributed in different industries and

regions.The Group continuously conducts credit assessments on the financial position of accounts

receivable and where appropriate takes out credit guarantee insurance.The maximum credit risk exposure of the Group is the carrying amount of each financial asset on the

balance sheet. The Group does not provide any other security which may expose the Group to a credit

risk.Of the Group's accounts receivable the accounts receivable of the top five customers account for

64.64% of the Group's total accounts receivable (in 2020: 53.97%); Among other receivables of the

Group other receivables from the top five companies in arrears amount to 65.49% (2020: 61.40%) of

the total amount of other receivables of the Group.

（2）Liquidity risk

Liquidity risk refers to the risk that the Group will encounter a shortage of funds when fulfilling its

obligations to settle by delivering cash or other financial assets.In managing liquidity risks the Group maintains and monitors cash and cash equivalents deemed

sufficient by the management to meet the operational needs of the Group and to reduce the impact of

cash flow fluctuations. The Group's management monitors the use of bank borrowings and ensures

compliance with borrowing agreements. It also secured a commitment from major financial institutions

to provide adequate standby funds to meet short - and long-term funding needs.The Group finances its working capital through funds generated from its operations and bank and

other borrowings. As at 30 June 2021 the Group's unutilized bank loan amount is RMB 0 million (31

December 2020: RMB 0 million).At the end of the period the maturity analysis of the financial assets financial liabilities and off-balance

sheet guarantee items held by the Group according to the undiscounted remaining contract cash flow is

as follows (unit: RMB 10000) :

Item 2021.6.30

Within one year Within one to five years More than five years Total

Financial liabilities:

Notes payable 33099.30

Short-term loans 7077.31 -- -- 7077.31

Accounts payable 9975.27 -- -- 9975.27

Interest payables 1653.53 -- -- 1653.53

Other payables 33117.87 -- -- 33117.87

Long-term payables -- 824.56 -- 824.56

Guarantees for client 38059.74 -- -- 38059.74

Total financial liabilities and 89883.72 824.56 -- 90708.28

contingent liabilities

At the beginning of the period the maturity analysis of the financial assets financial liabilities and

off-balance sheet guarantee items held by the Group according to the undiscounted remaining contract

cash flow is as follows (unit: RMB 10000) :

Item 2020.12.31

Within one year Within one to five years More than five

Total

years

Financial liabilities:

Short-term loans 7689.40 7689.40

Accounts payable 17692.66 17692.66

Interest payables 1653.53 - 1653.53

Other payables 26056.99 26056.99

Long-term payables 748.02 748.02

Guarantees for client 37135.79 37135.79

Total financial liabilities and 90228.36 748.02 - 90976.38

contingent liabilities

The amount of financial liabilities disclosed in the above table is undiscounted contractual cash flows

and may be different from the carrying amount on the balance sheet.The maximum amount of a guarantee contract that has been signed does not represent the amount to

be paid.

（3）Market risks

The market risk of financial instruments refers to the risk that the fair value or future cash flow of

financial instruments will fluctuate due to market price changes including interest rate risk exchange

rate risk and other price risks.Interest rate risk

Interest rate risk refers to the risk that the fair value of a financial instrument or future cash flow will

fluctuate due to changes in market interest rates. Interest rate risk can arise from recognized

interest-bearing financial instruments and from unrecognized financial instruments (such as certain

loan commitments).The interest rate risk of the Group mainly arises from long-term bank borrowings. Floating interest

rate financial liabilities expose the Group to cash flow interest rate risk while fixed interest rate

financial liabilities expose the Group to fair value interest rate risk. The Group determines the relative

proportion of fixed and floating rate contracts based on prevailing market conditions and maintains an

appropriate mix of fixed and floating rate instruments through regular review and monitoring.During the reporting period the Group operates by its own working capital. As at 30 June 2021 the

Group has no financial liabilities with fixed or floating interest rate such as bank loan. Therefore the

Group believes that the interest rate risk is insignificant

Currency risk

The term "exchange rate risk" refers to the risk that the fair value of a financial instrument or future

cash flow will fluctuate due to changes in foreign exchange rates. Exchange rate risk can arise from

financial instruments denominated in a foreign currency other than the standard currency.Exchange rate risk is mainly the Group's financial position and cash flows are affected by foreign

exchange rate fluctuations. In addition to the subsidiary established in Hong Kong holding assets in

Hong Kong dollar as the settlement currency only a small amount of Hong Kong market investment

business the group's foreign currency assets and liabilities accounted for the overall assets and liabilities

of the proportion is not significant. Therefore the Group believes that the exchange rate risk is not

significant.2. Capital management

The objective of the Group's capital management policy is to ensure that the Group can continue as a

going concern thereby providing a return to shareholders and benefiting other stakeholders while

maintaining an optimal capital structure to reduce the cost of capital.In order to maintain or adjust its capital structure the Group may adjust its financing method adjust

the amount of dividends paid to shareholders return capital to shareholders issue new shares and

other equity instruments or sell assets to reduce its debt.The Group monitors the capital structure on the basis of the debt-to-asset ratio (i.e. total liabilities

divided by total assets). As at 30 June 2021 the Group's liability to asset ratio was 33.36% (31

December 2020: 25.92%).。

XI. Fair Value

1、Items and amounts measured at fair value at the end of reporting periodPresented in RMB

As at 30 June 2021

Item The second level of

The first level of fair The third level of fair

fair value Total

value measurement value measurement

measurement

I.Recurring fair value measurement -- -- -- --

(1) Trading financial assets 1302329484.00 1302329484.00

（3）Investments in other equity

38081275.18 38081275.18

instrument

Total assets measured at fair value

1340410759.18 1340410759.18

on a recurring basis

II. Non-recurring fair value

-- -- -- --

measurements

2. Basis for determining the market price of the items measured based on the continuous and

non-continuous first level fair value

3. Items measured based on the continuous or uncontinuous 2nd level fair value valuation technique as

used nature of important parameters and quantitative information

4. Items measured based on the continuous or uncontinuous 3rd level fair value valuation technique as

used nature of important parameters and quantitative information

Valuation Range (weighted

Within the capacity Ending fair value The input value cannot be observed

techniques mean)

Equity instrument

investment:

Non-listed equity 37510860.51 Net asset method Net assets in the book

investments Liquidity discount

Monetary fund 1302329484.00

5. Items measured based on the continuous 3rd level fair value sensitivity analysis on adjusted information

and unobservable parameters between the book value at beginning and end of the period

6. In case items measured based on fair value are converted between different levels incurred in the current

period state the cause of conversion and determine conversion time point

7. Change of valuation technique incurred in the current period and cause of such change

8. the carrying value of other financial assets and financial liabilities which are not measured at fair value

varies

9. Other

The financial assets and financial liabilities of the Group measured at amortized cost mainly include

monetary funds accounts receivable other receivables short-term borrowings accounts payable other

payables long-term payables etc.Except for the following financial assets and financial liabilities the carrying value of other financial

assets and financial liabilities which are not measured at fair value varies very little from fair value

XII. Related parties and related party transactions

1. Information about the parent of the Group

Registered Shareholding Percentage of voting

Registration

Name Business nature capital percentage % rights %

place

(RMB0000)

Shenzhen

Shenzhen Investment Investment real estate

Guangdong 2764900.00 57.19% 57.19%

Holdings Co. Ltd. development guarantee

province

Note to the information about the parent of the Group:

The ultimate controlling party of the Group is State-owned Assets Supervision and Management

Commission of Shenzhen Municipal People’s Government.Other note:

2. Information about the subsidiaries of the Group

For information about the subsidiaries of the Group refer to Note IX “interests in subsidiaries”.3.Information about joint ventures and associates of the Group

For information about the joint ventures and associates of the Company refer to Note IX. 3(4)

“Summarized financial information of immaterial joint ventures and associates”.Joint ventures and associates that have related party transactions with the Group during this year or the

previous year are as follows:

Name of joint ventures or associates Relationship with the Group

Other note:

4.Information on other related parties

Name Related party relationship

Shenzhen Jian ‘an Group Co. Ltd. Same controlling shareholders

Shenzhen Dongfang New world store Co. Ltd Participating stock companies

Not included in Consolidated Financial Statements’ Subsidiary

Shenxi Limited

that had been terminated its licenses by law but not cancellation

Shenzhen Zhentong New Electromechanical Industry Not included in Consolidated Financial Statements’ Subsidiary

Development Co. Ltd. (Long-term without operation)

Not included in Consolidated Financial Statements’ Subsidiary

Shenzhen Nanyang Hotel Co. Ltd.that had been terminated its licenses by law but not cancellation

Not included in Consolidated Financial Statements’ Subsidiary

Shenzhen Real Estate Electromechanical Management Company

that had been terminated its licenses by law but not cancellation

Shenzhen Longgang Henggang Huagang Industrial Co. Ltd. Not included in Consolidated Financial Statements’ Subsidiary

that had been terminated its licenses by law but not cancellation

Directors Supervisors CFO and Board secretary Key management personnel

5. Transactions with related parties

（1）Purchases/sales

Purchase of goods/receiving of services

Presented in RMB

Nature of Year ended Approved transaction Whether it exceeds Year ended

Related party

transaction 2021.6.30 limit the transaction limit 2020.6.30

Shenzhen RongHua JiDian Co. Elevator

554150.94 No 554150.94

Ltd maintenance

Sales of goods/rendering of services

Presented in RMB

Related part Nature of transaction Year ended 2021.6.30 Year ended 2020.6.30

Shenzhen Jian'an Group Co. Ltd. Decoration services 2600000.00 1484806.59

Shenzhen RongHua JiDian Co. Ltd Property Services 42160.81 34435.70

Note:

（2）Trust/contracting arrangement

Asset management/contracting undertaken by the Group on behalf of related parties

Presented in RMB

Name of Type of assets Trust/contracting

Name of related Inception date of Maturity date of Trust/contracting

trustee/sub-contra entrusted/contract revenue revenue

party trust/contracting trust/contracting recognized in

ctor ed2021

Note:

Asset management / contracting undertaken by related parties on behalf of the Group

Presented in RMB

Name of Type of assets Trust/contractin

Name of related Inception date of Maturity date of Trust/contracting

trustor/main entrusted/contra g revenue revenue

party trust/contracting trust/contracting recognized in

contractor cted2021

Shantou City Shenzhen Jian'an

Construction 19 Oct. 2018 1 May 2021 Negotiations 40335001.49

Huafeng Real Group Co. Ltd.Estate

Devepment Co.Ltd

Note:

（3）Leases

As the lessor

Presented in RMB

Type of assets leased Lease income recognized in 2 Lease income recognized in

Lessee

021 2020

As the lessee

Presented in RMB

Type of assets leased Lease expense recognized in Lease expense recognized in

Lesser

2021 2020

Note:

（4）Guarantee

As the guarantor

Presented in RMB

Inception date of guara Maturity date of guaran

Guarantee holder Amount of guarantee Guarantee expired (Y/N)

ntee tee

As the guarantee holder

Presented in RMB

Inception date of guara Maturity date of guaran

Guarantor Amount of guarantee Guarantee expired (Y/N)

ntee tee

Note:

（5）Funding from related party

Presented in RMB

Amount of

Related party Inception date Maturity date Note

funding

Funds received

The principal of the loan was repaid

Shenzhen Investment on 22 December 2016 and the

16535277.94 9 Nov. 2006 22 Dec 2016

Shareholding Co. Ltd remaining amount was interest

payable.Funds provided

（6）Transfer of assets and debt restructuring

Presented in RMB

Nature of transaction

Related party Year ended 2021.6.30 Year ended 2020.6.30

（7）Remuneration of key management personnel

Presented in RMB

Item Year ended 2021.6.30 Year ended 2020.6.30

Remuneration of key management

3399100.00 2252200.00

personnel

（8）Other related party transactions

6. Receivables from and payables to related parties

（1）Receivables from related parties

Presented in RMB

As at 30 June 2021 As at 30 June 2020

Provision for Provision for

Item Related party

Book value bad and Book value bad and

doubtful debts doubtful debts

Accounts Shenzhen Fresh Peak property consultant

1134226.35 1134226.35 1144740.49 1144740.49

receivable Co. Ltd

Other Guangdong Province Huizhou Luofu Hill

10465168.81 10465168.81 10465168.81 10465168.81

receivables Mineral Water Co. Ltd

Other Shenzhen Runhua Automobile Trading

3072764.42 3072764.42 3072764.42 3072764.42

receivables Co. Ltd

Other

Canada GreatWall (Vancouver) Co. Ltd 89035748.07 89035748.07 89035748.07 89035748.07

receivables

Other

Bekaton Property Limited 12559290.58 12559290.58 12559290.58 12559290.58

receivables

Other

Bekaton Property Limited 19450684.59 19450684.59 18870785.54 18870785.54

receivables

Other Shenzhen Shenfang Department Store Co.237648.82 237648.82 237648.82 237648.82

receivables Ltd.Other

Shenzhen RongHua JiDian Co. Ltd 475223.46 23761.17 475223.46 23761.17

receivables

Other Xi’an Fresh Peak property management&

8419205.19 8419205.19 8419205.19 8419205.19

receivables Trading Co. Ltd

Other

Shenxi Limited 7660529.37 7660529.37 7660529.37 7660529.37

receivables

Other

Shenzhen Jian'an Group Co. Ltd. 3168721.00 3168721.00 3168721.00 3168721.00

receivables

（2）Payables to related parties

Presented in RMB

Item Related party

As at 30 Jun 2021 As at 30 Jun 2020

Shenzhen Investment Shareholding Co.Interest payables 16535277.94 16535277.94

Ltd

Accounts payable Shenzhen Jian'an Group Co. Ltd. 1952979.95 54193856.16

Shenzhen Dongfang New world store

Other payables 902974.64 902974.64

Co. Ltd

Guangdong Province Fengkai Lain Feng

Other payables 1867348.00 1867348.00

Cement Manufacturing Co. Ltd.Shenzhen Real Estate Electromechanical

Other payables 14981420.99 14981420.99

Management Company

Shenzhen Zhentong New

Other payables Electromechanical Industry Development 8310832.50 8827940.07

Co. Ltd.Shenzhen Shenfang Department Store

Other payables 639360.38 639360.38

Co. Ltd.Shenzhen Longgang Henggang Huagang

Other payables 165481.09 165481.09

Industrial Co. Ltd.7. Related party commitment

8. Other

XIII. Share-based payment

1. The general situation of share-based payment

□ Applicable √ Not Applicable

2. Share payment settled in equity

□ Applicable √ Not Applicable

3. Cash-settled share payments

□ Applicable √ Not Applicable

4. Modification and termination of share-based payment

5. Other

XIV. Commitments and contingencies

1. Significant commitments

As at 30 June 2021 there exist significant commitments.1. Significant commitments

(1) Capital commitments

Capital commitments entered into but not 2021.6.30 2020.12.31

recognized in the financial statements

Material sales or purchases contracts 173791112.22 153945220.09

Note: material sales or purchases contracts relates to Shantou Tianyue Bay No.2 which is signed with

Shenzhen Construction & Installation (Group) Co. Ltd. for engineering construction.

（2）Information on implementation of commitments in previous years

Refer to note XII 5. (2).As at 30 June 2021 there is no material commitment to be disclosed.2. Contingencies

（1）Contingent liabilities arising from pending arbitration and pending litigation and related financial

impact

Amount of the

Plaintiff Defendant Case Appellate court object of Progress of cases

action

Xi’an Fresh Peak Xi'an Commercial and Trade Investment Shaanxi Higher 36.62 million Pending

Holding limited Commission Xi'an Commerce and compensation People's Court yuan and

company Tourism Co. Ltd. disputes interest

Note:

Xi’an Fresh Peak Holding limited company (hereinafter referred to as “Fresh Peak Company”) was

Sino-foreign joint venture set up in Xi’an. Among them Fresh Peak Enterprise Co. Ltd made 67% of

the shares in cash. Xi’an Trade Building a company directly under the Xi'an Commercial and Trade

Commission (hereinafter referred to as "Xi'an C&T Commission") invested 16% of the shares in land

use rights. Hong Kong Dadiwang Industrial Investment Company holds 17% of the shares. The core

business was property development. And the project was Xi’an Trade Building. The project was started

on 28 November 1995. But the project had been stopped in 1996 because of the two parties’

differences on the operating policy of the project. In 1997 the Xi’an government withdrew the Xi'an

Fresh Peak investment project compulsively and assigned the project to Xi’an Business Tourism Co.Ltd (hereinafter referred to as “Business Tourism Company”). But two parties had insulted a lawsuit on

compensation. The ShanXi Province High Peoples Court made a judgement “(2000) SJ-CZ No.25”.The judgement was as follows: 1. Business Tourism Company had to pay for the compensation RMB

36620 thousand to Xi’an Fresh Peak Company after the judgment entering into force. If the Business

Tourism Company failed to pay in time it had to pay double debt interests to Xi’an Fresh Peak

Company. 2. Xi’an Joint Commission on Commerce had jointly and severally obligation of the interests

of the compensation.By auctioning assets of Business Tourism Company the amount of RMB 15201000.00 had been

called back. The company has obtained new property clues submitted an application for resumption of

execution this case is still pending until 30 June 2021.As at 30 June 2021 the book value of the long-term equity investment of Xi’an Fresh Peak Company

is RMB 32840729.61. The book balance of assets was RMB 8419205.19. Both have been taken full

provision for impairment loss

（2）Contingent liabilities arising from guarantee provided to other entities and related financial effects.

As at 30 June 2021 the Group provides commercial housing purchaser with guarantees at 37135.79

((RMB in ten thousand) for the following loans:

Item Duration Amount (In ten thousand) Note

Shengfang CuiLin Until the Premises Permit mortgage 4238.32

Building registration is finished and in bank custody

ChuanQi DongHu Until the Premises Permit mortgage 4550.44

Building (Former registration is finished and in bank custody

DongHuDiJing Building)

TianYue Bay Until the Premises Permit mortgage 29270.98

registration is finished and in bank custody

Total 38059.74

（4）Other contingencies（Not including contingent liabilities that are highly unlikely to result in anoutflow of economic benefits from the business）

For information about contingency of joint venture or joint venture investment refer to Note IX 3.

(4).

As at 30 June 2021 there is no other contingency to be disclosed.2. Contingencies

（1）Significant contingencies exist on the balance sheet date

（2）It is necessary to explain if the group has no contingencies to be disclosed.

There is no material contingencies to be disclosed.3.Other

XV. Post balance sheet date events

1.Material post balance sheet date events

Presented in RMB

Item Nature Effect on the financial position Reason for effect cannot be

and financial performance estimated

2. Profit appropriations after the balance sheet date

3. Sales returns

4. Other events after the balance sheet date

XVI. Other significant items

1. Corrections of errors in prior periods

（1）Retrospective method

Presented in RMB

Financial item affected in the

Details of corrections of errors Adjustment procedure Cumulative amount

comparable period

（2）Prospective method

Details of correction of errors Approval procedure Reason for using prospective method

2. Major debt restructuring

3. Replacement of assets

（1）Exchange of non-monetary assets

（2）Other asset replacement

4. Annuity plan

5. Termination of operation

6. Segment reporting

（1）The basis for determining the reporting segments and accounting policy

（2）Financial information of the reporting segments

（3）In case there is no reporting segment or the total assets and liabilities of the reporting segments cannot

be disclosed explain the reason

（4）Other note

7. Other significant transactions and matters that may affect investors' decision making

8. Other

XVII. Notes for main items in the parent company's financial statements

1. Accounts Receivable

（1）Accounts receivables disclosed by categories

Presented in RMB

As at 30 June 2021 As at 30 June 2020

Book balance Bad debt provision Book balance Bad debt provision

Item

Provision Book Provision

Proporti Proporti Book value

Amount Amount proportio value Amount Amount proportio

on on

n n

Bad debt provisions

956421 956421 1013220 1013220

made on an 96.84% 100.00% 0.00 65.08% 100.00%

3.19 3.19 5.24 5.24

individual basis

Including：

Bad debt provisions

311815. 311815.2 5436898 5418024.7

made on a 3.16% 34.92% 18873.95 0.35%

21 1 .69 4

combination basis

Including：

Accounts receivable

311815. 311815.2 5059419 5059419.6

from related parties 3.16% 0.00 0.00% 32.50% 0.00%

21 1 .69 9

in consolidated scope

Accounts receivable 377479.0

0.00 2.42% 18873.95 5.00% 358605.05

from property sales 0

987602 956421 311815.2 1556910 1015107 5418024.7

Total 100.00% 96.84% 100.00% 65.20%

8.40 3.19 1 3.93 9.19 4

Bad debt provisions made on an individual basis: long-term accounts receivable from property sales

Presented in RMB

As at 30 June 2021

Item

Book balance Bad debt provision Percentage of provision Rationale of Provision

long-term accounts

Expected to be

receivable from property 9564213.19 9564213.19 100.00%

uncollectable

sales

Total 9564213.19 9564213.19 -- --

Bad debt provisions made on an individual basis:

Presented in RMB

As at 30 June 2021

Item

Book balance Bad debt provision Percentage of provision Rationale of Provision

Bad debt provisions made on a combination basis: related parties in consolidation scope

Presented in RMB

As at 30 June 2021

Item

Book balance Bad debt provision Percentage of provision

More than 3 years 311815.21 0.00 0.00%

Total 311815.21 0.00 --

Note to the basis for determining the combination:

Bad debt provisions made on a combination basis:：

Presented in RMB

As at 30 June 2021

Item

Book balance Bad debt provision Percentage of provision

Note to the basis for determining the combination:

Please refer to the way of disclosing other receivables’ bad debt provision to disclose relevant

information if the group choose to use general model of expected credit losses to accrue bad debts of

accounts receivable.□ Applicable √ Not Applicable

Disclosed by aging

Presented in RMB

Aging As at 30 June 2021

Within 1 year (with 1 year inclusive) 155733.78

Above 3 year 9720294.62

Above 5 year 9720294.62

Total 9876028.40

（2）Additions recoveries or reversals of provision for the current period

Provision for the current period:

Presented in RMB

Amount changes in current period

As at 30 June As at 30 June

Types Recoveries or

2020 Provision Written-off Others 2021

reversals

Bad debt provision 10151079.19 586866.00 9564213.19

Total 10151079.19 586866.00 9564213.19

Including: significant recoveries or reversals of bad debt provisions in the current period are as follows:

Presented in RMB

Name of the entity Recoveries or reversals amount Recovery manner

（3）Actual write-off of accounts receivable in the current period

Presented in RMB

Item Written-off amount

Including the significant write-offs of accounts receivable are as follows

Presented in RMB

Name of the entity Nature of accounts Written-off amount Reason for Approval procedures Accounts receivable

receivable written-off performed arising from related

party

transactions(Y/N)

Note：

（4）The top five units with the ending balance of accounts receivable collected by the debtor

Presented in RMB

Accounts receivable % of the total closing balance of Bad debt provision

Name of the entity

The ending balance accounts receivable The ending balance

Daxing Auto Parts Co. Ltd. 1890563.21 19.14% 1890563.21

Weidong Wang 1200000.00 12.15% 1200000.00

Guangyao Cai 876864.11 8.88% 876864.11

Peitong Huang 617559.26 6.25% 617559.26

Zhiying Zhang 593244.00 6.01% 593244.00

Total 5178230.58 52.43%

（5）Accounts receivable terminated due to the transfer of financial assets

（6）Transfer of accounts receivable and continue to involve the amount of assets and liabilities formed

Other note：

2、Other receivablesPresented in RMB

Item As at 30 June 2021 As at 30 June 2020

Other receivables 1405959127.23 1160414195.39

Total 1405959127.23 1160414195.39

（1）Interest receivable

1）Classification of interest receivable

Presented in RMB

Item As at 30 June 2021 As at 30 June 2020

2）Significant overdue interest

Whether impairment

Borrowing unit The ending balance Overdue time (month) Overdue reason occurs and the basis for

judgment

Other note：

3）Bad Debt Provisions

□ Applicable √ Not Applicable

（2）Dividends receivable

1）Dividends receivable classification

Presented in RMB

Items (or invested units) As at 30 June 2021 As at 30 June 2020

2）Significant dividends receivable overdue more than one year are as follows:

Presented in RMB

Items (or invested units) As at 30 June 2021 Aging Reasons for not Whether impairment

retrieving occurs and the basis for

judgment

3）Bad Debt Provisions

□ Applicable √ Not Applicable

Other note:

（3）Other receivables

1）Other receivables disclosure by nature

Presented in RMB

Item Book balance as at 30 June 2021 Book balance as at 30 June 2020

Other receivables from government 165460.00 165460.00

Other receivables from employee’s petty

cash

Other receivables from the collecting and

3650.15 307.17

paying on behalf

Other receivables from other customers 5464392.59 5464176.55

Other receivables from related parties 295440255.54 137211313.52

Other receivables in consolidated scope 1905895183.07 1818582752.27

Total 2206968941.35 1961424009.51

2）Bad Debt Provision

Presented in RMB

first stage Second stage Third stage

Bad Debt Provision To 12-month expected To lifetime expected Total

To 12-month expected

credit loss (no credit credit loss (has occurred

credit loss

impairment) credit impairment)

Balance as at 1 January 2021 95601.19 660150746.68 140763466.25 801009814.12

Balance as at 1 January 2021

—— —— —— ——

in current period

Balance as at 30 June 2021 95601.19 660150746.68 140763466.25 801009814.12

Changes in the book balance with significant changes in the loss provision for the current period:

□ Applicable √ Not Applicable

Disclosure by aging

Presented in RMB

Aging As at 30 June 2021

Within 1 year (include 1 year) 414027582.92

1 to 2 years 232686504.35

2 to 3 years 108993517.82

3 to 4 years 1363323710.95

4 to 5 years 1363323710.95

Total 2119031316.04

3）Additions recoveries or reversals of provision for the current period

Presented in RMB

Amount changes in current period

As at 30 June

Types As at 30 June 2020 Recoveries or

Additions Written-off Others 2021

reversals

Other receivables bad

801009814.12 801009814.12

debt provision

Total 801009814.12 801009814.12

Including: significant recoveries or reversals of bad debt provisions in the current period are as follows:

Presented in RMB

Name of the entity Amount of recoveries or reversals Recovery manner

4）Other receivables actually written off in the current period

Presented in RMB

Item Amount of written-off

Including the important accounts receivable write-off situation is as follows

Presented in RMB

Verification and

Nature of other Amount of Whether the payment cancellation

Name of the entity Reason is generated by an

receivable written-off procedures to be affiliate transaction

performed

Note：

5）The top five units of ending balance of other receivables

Presented in RMB

Proportion of total

Ending balance Ending balance

Nature of other ending balance of

Name of the entity of other Aging of bad debt

receivables other receivables

receivables provision

(%)

Within 1 year.Shantou Huafeng Estate Development Receivable from

798024166.21 1-3 years. More 36.16%

Co. Ltd Subsidiary

than 3 years

Receivable from Within 1 year.Fresh Peak Enterprise Co. Ltd Subsidiary 532770123.87 More than 5 24.14% 508377320.74

years

Guangdong Jianbang Group (Huiyang) Receivable from

345193443.65

Industrial Co. Ltd. Subsidiary

Shenzhen Shenfang Group Longgang Receivable from

126504253.19 Within 1 year. 5.73%

Development Co. Ltd. Subsidiary

Receivable from More than 5

American Great Wall Co. Ltd 103403196.15 4.69% 103403196.15

Subsidiary years

Total -- 1905895183.07 -- 86.36% 611780516.89

6）Government subsidies receivable

Presented in RMB

Name of government Estimated time amount

Name of the organization The ending balance Aging

subsidy item and basis of collection

7）Other receivables terminated due to the transfer of financial assets

8）Amount of assets and liabilities formed by transferring other receivables and continuing to involve them

Note：

3、Long-term equity investmentsPresented in RMB

As at 30 June 2021 As at 30 June 2020

Item Impairment Impairment

Book balance Book value Book balance Book value

reserve reserve

Investment in

753045949.42 152839271.15 600206678.27 303045949.42 152839271.15 150206678.27

subsidiaries

Investment in

associates and 12355335.26 11977845.58 377489.68 12355335.26 11977845.58 377489.68

joint ventures

Total 765401284.68 164817116.73 600584167.95 315401284.68 164817116.73 150584167.95

（1）Investment in subsidiaries

Presented in RMB

Increase/ Decrease (+ / -) in

current period

As at 30 June provision for

As at 30 June Additi Decrea Provisio

Name of investee 2021(book impairment as

2020(book value) onal se of n for

Other value) at 30 June 2021

invest invest impairm

ment ment ent

Shenzhen City Property Management

12821791.52 12821791.52

Ltd.Shenzhen Petrel Hotel Co. Ltd. 20605047.50 20605047.50

Shenzhen City Shenfang Investment

9000000.00 9000000.00

Ltd.Fresh Peak Enterprise Ltd. 556500.00 556500.00

Fresh Peak Zhiye Co. Ltd. 22717697.73 22717697.73

Shenzhen Special Economic Zone Real

Estate (Group) Guangzhou Property and 19000000.00

Estate Co. Ltd.Shenzhen Zhen Tung Engineering Ltd 11332321.45 11332321.45

American Great Wall Co. Ltd 1435802.00 1435802.00

Shenzhen City Shenfang Free Trade

4750000.00 4750000.00

Trading Ltd.Shenzhen Huazhan Construction

6000000.00 6000000.00

Supervision Co. Ltd.QiLu Co. Ltd 212280.00 212280.00

Beijing Shenfang Property Management

500000.00

Co. Ltd.Shenzhen Lain Hua Industry and

13458217.05 13458217.05

Trading Co. Ltd.Shenzhen City SPG Long Gang

30850000.00 30850000.00

Development Ltd.Beijing Fresh Peak Property

Development Management Limited 64183888.90

Company

Shantou City Huafeng Real Estate

16467021.02 16467021.02

Devepment Co. Ltd

Paklid Limited 201100.00

Bekaton Property Limited 906630.00

Shenzhen Shenfang Department Store

9500000.00

Co. Ltd.Shantou Fresh Peak Building 58547652.25

Guangdong Jianbang Group (Huiyang)

450000000.00

Industrial Co. Ltd.Total 150206678.27 600206678.27 152839271.15

（2）Investment in associates and joint ventures

Presented in RMB

Increase/ Decrease (+ / -) in the Jan to Jun 2021

Income

from

Addi Decr Other Announc Prov

equity

Opening tion ease compreh Other ed for isio Ending Ending balance

investme

Investees balance al of ensive equity distributi n for Othe balance of the provisio n

(book value) inve inve income movem ng cash impa rs (book value) for impairm ent

recogniz

stme stme adjustme ent dividend irm

ed under

nt nt nt or profit ent

equity

method

I. Joint Venture

Fengkai Xinghua

0.00 0.00 9455465.38

Hotel

Subtotal 9455465.38

II. Associates

Shenzhe n Ronghua

377489.68 377489.68 1076954.64

Jidian Co. Ltd

Shenzhe n Runhua

Automo bile 0.00 0.00 1445425.56

Trading Co. Ltd

Subtotal 377489.68 377489.68 2522380.20

Total 377489.68 377489.68 11977845.58

（3）Other note

4. Operation Income and Costs

Presented in RMB

Jan to Jun 2021 Jan to Jun 2020

Items

Income Costs Income Costs

Principal business 455734779.10 115125525.93 231360942.20 64778297.24

Other businesses 6035.31 95.24

Total 455740814.41 115125525.93 231361037.44 64778297.24

Revenue related information: