ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. First Quarterly Report 2023

Stock Code: 000029 200029 Stock Name: SPG SPG-B Announcement No.: 2023-023

SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE

& PROPERTIES (GROUP) CO. LTD.FIRST QUARTERLY REPORT 2023

Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. (hereinafter referred to as the “Company”) and all

the members of the Company’s Board of Directors hereby guarantee that the contents of this Report are true accurate and

complete and free of any misrepresentations misleading statements or material omissions.Important Notes:

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

Company hereby guarantee that the contents of this Report are true accurate and complete and free of any misrepresentations

misleading statements or material omissions and collectively and individually accept legal responsibility for such contents.

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

financial manager) hereby guarantee that the financial statements carried in this Report are true accurate and complete.

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

□Yes □ No

This Report has been prepared in both Chinese and English. Should there be any discrepancies or misunderstandings between the

two versions the Chinese version shall prevail.

1ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. First Quarterly Report 2023

I Key Financial Information

(I) Key Accounting Data and Financial Indicators

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

Q1 2023 Q1 2022 YoY change (%)

Operating revenue (RMB) 109155515.74 272594952.10 -59.96%

Net profit attributable to the listed

-35653798.52162278083.59-121.97%

company’s shareholders (RMB)

Net profit attributable to the listed

company’s shareholders before -37833791.48 37225465.61 -201.63%

exceptional gains and losses (RMB)

Net cash generated from/used in

-183238769.33-461062516.9260.26%

operating activities (RMB)

Basic earnings per share (RMB/share) -0.0352 0.1604 -121.95%

Diluted earnings per share (RMB/share) -0.0352 0.1604 -121.95%

Weighted average return on equity (%) -0.89% 4.04% -4.93%

31 March 2023 31 December 2022 Change (%)

Total assets (RMB) 5507814502.77 5689769802.18 -3.20%

Equity attributable to the listed

3970486346.384004240547.70-0.84%

company’s shareholders (RMB)

(II) Exceptional Gains and Losses

□ Applicable □ Not applicable

Unit: RMB

Item Q1 2023 Note

Government grants through profit or loss (exclusive of government grants

Government grants

continuously given in the Company’s ordinary course of business at fixed 118084.21

received

quotas or amounts as per the government’s policies and standards)

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

financial assets and liabilities and investment income from disposal of

value and investment

trading financial assets trading financial liabilities and available-for-sale 2105531.76

financial assets other than effective hedge business related to the income arising from

Company’s normal operating businesses investing monetary funds

Non-operating income and expense other than the above -17894.07

Less: Income tax effects 25047.54

Non-controlling interests effects (net of tax) 681.40

Total 2179992.96

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

□Applicable □ Not applicable

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

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

□Applicable □ Not applicable

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

□ Applicable □ Not applicable

Operating revenue of Q1 2023 declined 59.96% compared to that of Q1 2022 and the net profit attributable to the listed company’s

shareholders before exceptional gains and losses of Q1 2023 declined 201.63% compared to that of Q1 2022 primarily driven by

the YoY decrease in carryforward of real estate sales in Q1 2023;

2ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. First Quarterly Report 2023

The net profit attributable to the listed company’s shareholders of Q1 2023 declined 121.97% compared to that of Q1 2022

primarily driven by the transfer of 100% equity of Shenzhen Property Management Co. Ltd. occurring in Q1 2022 and increase in

sales carryforward in Q1 2023;

As for the net cash generated from/used in operating activities of Q1 2023 the outflow was 60.26% lower than that of Q1 2022

primarily driven by the payment of land tax increment clearance in Q1 2022.II Shareholder Information

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

as Holdings of Top 10 Shareholders

Unit: share

Number of preference shareholders with resumed

Number of ordinary shareholders 45531 0

voting rights (if any)

Top 10 shareholders

Shareho Shares in pledge marked or frozen

Restricted

Nature of lding

Name of shareholder Total shares held shares

shareholder percenta Status Shares

held

ge

Shenzhen Investment State-owned

55.78%564353838.000.00

Holdings Co. Ltd. corporation

Domestic

Shenzhen State-Owned

non-state-

Equity Operation and 6.35% 64288426.00 0.00

owned legal

Management Co. Ltd.person

Domestic

Yang Jianmin natural 1.08% 10898877.00 0.00

person

Domestic

Pan Jun natural 0.49% 5001500.00 0.00

person

Domestic

Zhang Xiujuan natural 0.47% 4785600.00 0.00

person

Domestic

Wang Yulan natural 0.41% 4185291.00 0.00

person

Domestic

He Qiao natural 0.40% 4041686.00 0.00

person

Hong Kong Securities Foreign

0.35%3522955.000.00

Clearing Company Ltd. legal person

Domestic

Cao Benming natural 0.33% 3356800.00 0.00

person

Domestic

Zhang Chengyu natural 0.26% 2600800.00 0.00

person

Top 10 unrestricted shareholders

Shares by type

Name of shareholder Unrestricted shares held

Type Shares

RMB-denominated

Shenzhen Investment Holdings Co. Ltd. 564353838.00 564353838.00

ordinary stock

Shenzhen State-Owned Equity Operation RMB-denominated

64288426.0064288426.00

and Management Co. Ltd. ordinary stock

RMB-denominated

Yang Jianmin 10898877.00 10898877.00

ordinary stock

RMB-denominated

Pan Jun 5001500.00 5001500.00

ordinary stock

3ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. First Quarterly Report 2023

RMB-denominated

Zhang Xiujuan 4785600.00 4785600.00

ordinary stock

RMB-denominated

Wang Yulan 4185291.00 4185291.00

ordinary stock

RMB-denominated

3889000.00

ordinary stock

He Qiao 4041686.00

Domestically

152686.00

listed foreign stock

Hong Kong Securities Clearing Company RMB-denominated

3522955.003522955.00

Ltd. ordinary stock

RMB-denominated

Cao Benming 3356800.00 3356800.00

ordinary stock

RMB-denominated

Zhang Chengyu 2600800.00 2600800.00

ordinary stock

Among the top 10 unrestricted ordinary shareholders of the Company

Shenzhen State-Owned Equity Operation and Management Co. Ltd. is the

wholly-owned subsidiary of Shenzhen Investment Holdings Co. Ltd. The

Related or acting-in-concert parties among the

Company does not know whether there exists related-party relationship

shareholders above

among the other shareholders or whether they are persons acting in

concert as prescribed in the Administrative Measures for the Acquisition of

Listed Companies.Among the top 10 shareholders the third shareholder holds 9432200

shares of the Company in his credit security account; the fifth shareholder

holds 4785600 shares of the Company in his credit security account; the

Top 10 shareholders engaged in securities margin

seventh shareholder holds 3702300 shares of the Company in her credit

trading (if any)

security account; the ninth shareholder holds 3351800 shares of the

Company in its credit security account; the tenth shareholder holds

2366000 shares of the Company in its credit security account.

(II) Number of Preference Shareholders and Shareholdings of Top 10 of Them

□Applicable □ Not applicable

III Other Significant Events

□ Applicable □ Not applicable

(I) On 30 March 2023 the Company convened the 1st Extraordinary General Meeting of 2023 at which the non-independent

directors and independent directors of the 8th Board of Directors and non-employee supervisors of the 8th Supervisory Committee

were elected who formed the new Board of Directors and Supervisory Committee together with the employee supervisors elected

by the Company’s congress of workers and staff. For more details please refer to the Announcement on Completion of the Election

of the Board of Directors and the Supervisory Committee (Announcement No.: 2023-017) disclosed on 31 March 2023;

(II) In accordance with the regulation of the Articles of Association that the Company’s legal representative shall be its chairman

of the Board the Company has completed the industrial and commercial registration changing procedures on 17 April 2023 and

the legal representative of the Company was changed to Mr. Tang Xiaoping from Mr. Liu Zhengyu.IV Quarterly Financial Statements

(I) Financial Statements

1. Consolidated Balance Sheet

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

31 March 2023

4ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. First Quarterly Report 2023

Unit: RMB

Item 31 March 2023 1 January 2023

Current assets:

Monetary assets 173441137.89 197663949.74

Settlement reserve

Loans to other banks and financial

institutions

Held-for-trading financial assets 273459893.18 408154361.42

Derivative financial assets

Notes receivable 1536150.00

Accounts receivable 54287010.07 63580422.16

Receivables financing

Prepayments 5743693.11 1163612.24

Premiums receivable

Reinsurance receivables

Receivable reinsurance contract reserve

Other receivables 24573840.41 42105050.33

Including: Interest receivable

Dividends receivable

Financial assets purchased under resale

agreements

Inventories 4282125304.63 4257109614.31

Contract assets

Assets held for sale

Current portion of non-current assets

Other current assets 37486541.23 36778641.42

Total current assets 4851117420.52 5008091801.62

Non-current assets:

Loans and advances to customers

Debt investments

Other debt investments

Long-term receivables

Long-term equity investments 93927.64 93927.64

Investments in other equity

14011987.5413839235.57

instruments

Other non-current financial assets

Investment property 560216601.35 566873915.07

Fixed assets 20812148.77 21425475.05

Construction in progress

Productive living assets

Oil and gas assets

Right-of-use assets 199282.91 232496.72

Intangible assets

Development costs

Goodwill

Long-term prepaid expense 1992877.19 2176221.53

Deferred income tax assets 59370256.85 77036728.98

Other non-current assets

Total non-current assets 656697082.25 681678000.56

Total assets 5507814502.77 5689769802.18

Current liabilities:

Short-term borrowings 46682302.88 51138077.62

Borrowings from the central bank

Loans from other banks and financial

institutions

Held-for-trading financial liabilities

Derivative financial liabilities

Notes payable

5ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. First Quarterly Report 2023

Accounts payable 420510933.32 434601559.67

Advances from customers 5428233.81 5465343.96

Contract liabilities 38096046.55 43533467.29

Financial assets sold under repurchase

agreements

Customer deposits and deposits from

other banks and financial institutions

Payables for acting trading of securities

Payables for underwriting of securities

Employee benefits payable 31583350.13 35724203.78

Taxes and levies payable 61205538.67 190951185.99

Other payables 561998000.05 574331340.84

Including: Interest payable 16535277.94 16535277.94

Dividends payable

Fees and commissions payable

Reinsurance payables

Liabilities directly associated with

assets held for sale

Current portion of non-current

8412023.446188794.43

liabilities

Other current liabilities 3078103.61 3882817.68

Total current liabilities 1176994532.46 1345816791.26

Non-current liabilities:

Insurance contract reserve

Long-term borrowings 74961000.00 54261000.00

Bonds payable

Including: Preference shares

Perpetual bonds

Lease liabilities 33272.19 53885.23

Long-term payables

Long-term employee benefits payable

Provisions

Deferred income

Deferred income tax liabilities 3096348.02 3096348.02

Other non-current liabilities

Total non-current liabilities 78090620.21 57411233.25

Total liabilities 1255085152.67 1403228024.51

Owners’ equity:

Share capital 1011660000.00 1011660000.00

Other equity instruments

Including: Preference shares

Perpetual bonds

Capital reserves 978244910.11 978244910.11

Less: Treasury stock

Other comprehensive income 27826318.05 25926720.85

Specific reserve

Surplus reserves 275253729.26 275253729.26

General reserve

Retained earnings 1677501388.96 1713155187.48

Total equity attributable to owners of the

3970486346.384004240547.70

Company as the parent

Non-controlling interests 282243003.72 282301229.97

Total owners’ equity 4252729350.10 4286541777.67

Total liabilities and owners’ equity 5507814502.77 5689769802.18

Legal representative: Tang Xiaoping Chief Financial Officer: Wang Jianfei Head of the financial department: Qiao Yanjun

6ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. First Quarterly Report 2023

2. Consolidated Income Statement

Unit: RMB

Item Q1 2023 Q1 2022

1. Revenues 109155515.74 272594952.10

Including: Operating revenue 109155515.74 272594952.10

Interest revenue

Insurance premium income

Fee and commission

income

2. Costs and expenses 151818346.49 218394023.67

Including: Cost of sales 101079794.15 152460417.85

Interest costs

Fee and commission

expense

Surrenders

Net insurance claims paid

Net amount provided as

insurance contract reserve

Expenditure on policy

dividends

Reinsurance premium

expense

Taxes and levies 33875290.78 48242285.55

Selling expense 3955020.34 4783896.07

Administrative expense 13032486.78 14926706.67

R&D expense

Finance costs -124245.56 -2019282.47

Including: Interest costs

Interest revenue 384410.44 2135908.57

Add: Other income 118084.21 330714.74

Return on investment (“-” for loss) 161491.79 165739875.11

Including: Share of profit or loss

of joint ventures and associates

Income from the derecognition

of financial assets at amortized cost (“-”

for loss)

Exchange gain (“-” for loss)

Net gain on exposure hedges (“-”

for loss)

Gain on changes in fair value (“-”

1944039.972986182.85

for loss)

Credit impairment loss (“-” for

81350.0053211.01

loss)

Asset impairment loss (“-” for

-268941.60

loss)

Asset disposal income (“-” for

loss)

3. Operating profit (“-” for loss) -40357864.78 223041970.54

Add: Non-operating income 3000.01 400002.42

Less: Non-operating expense 20894.08 1423.06

4. Gross profit (“-” for loss) -40375758.85 223440549.90

Less: Income tax expense -3923657.55 61821128.60

5. Net profit (“-” for net loss) -36452101.30 161619421.30

5.1 By operating continuity

5.1.1 Net profit from continuing

-36452101.30161619421.30

operations (“-” for net loss)

5.1.2 Net profit from discontinued

operations (“-” for net loss)

5.2 By ownership

7ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. First Quarterly Report 2023

5.2.1 Net profit attributable to

-35653798.52162278083.59

owners of the Company as the parent

5.2.1 Net profit attributable to non-

-798302.78-658662.29

controlling interests

6. Other comprehensive income net of

2639673.73-1625109.66

tax

Attributable to owners of the

1899597.20-1698538.22

Company as the parent

6.1 Items that will not be

1899597.20-1869871.54

reclassified to profit or loss

6.1.1 Changes caused by

remeasurements on defined benefit

schemes

6.1.2 Other comprehensive

income that will not be reclassified to

profit or loss under the equity method

6.1.3 Changes in the fair value of

1899597.20-1869871.54

investments in other equity instruments

6.1.4 Changes in the fair value

arising from changes in own credit risk

6.1.5 Other

6.2 Items that will be reclassified to

171333.32

profit or loss

6.2.1 Other comprehensive

income that will be reclassified to profit

or loss under the equity method

6.2.2 Changes in the fair value of

other debt investments

6.2.3 Other comprehensive

income arising from the reclassification

of financial assets

6.2.4 Credit impairment

allowance for other debt investments

6.2.5 Reserve for cash flow

hedges

6.2.6 Differences arising from the

translation of foreign currency- 171333.32

denominated financial statements

6.2.7 Other

Attributable to non-controlling

740076.5373428.56

interests

7. Total comprehensive income -33812427.57 159994311.64

Attributable to owners of the

-33754221.89160579545.37

Company as the parent

Attributable to non-controlling

-58205.68-585233.73

interests

8. Earnings per share

8.1 Basic earnings per share -0.0352 0.1604

8.2 Diluted earnings per share -0.0352 0.1604

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

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

3. Consolidated Cash Flow Statement

Unit: RMB

Item Q1 2023 Q1 2022

1. Cash flows from operating activities:

Proceeds from sale of commodities

81910853.47135938494.95

and rendering of services

Net increase in customer deposits and

deposits from other banks and financial

institutions

8ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. First Quarterly Report 2023

Net increase in borrowings from the

central bank

Net increase in loans from other

financial institutions

Premiums received on original

insurance contracts

Net proceeds from reinsurance

Net increase in deposits and

investments of policy holders

Interest fees and commissions received

Net increase in loans from other banks

and financial institutions

Net increase in proceeds from

repurchase transactions

Net proceeds from acting trading of

securities

Tax and levy rebates 1186861.59 79547.26

Cash generated from other operating

12468006.72165092287.40

activities

Subtotal of cash generated from

95565721.78301110329.61

operating activities

Payments for commodities and services 42338057.79 118807563.04

Net increase in loans and advances to

customers

Net increase in deposits in the central

bank and other banks and financial

institutions

Payments for claims on original

insurance contracts

Net increase in loans to other banks and

financial institutions

Interest fees and commissions paid

Policy dividends paid

Cash paid to and for employees 21566505.36 30832704.29

Taxes and levies paid 162889235.25 481133071.14

Cash used in other operating activities 52010692.71 131399508.06

Subtotal of cash used in operating

278804491.11762172846.53

activities

Net cash generated from/used in

-183238769.33-461062516.92

operating activities

2. Cash flows from investing activities:

Proceeds from disinvestment

Return on investment 813960.00

Net proceeds from the disposal of fixed

assets intangible assets and other long- 3000.00 18186211.00

lived assets

Net proceeds from the disposal of

121650555.74

subsidiaries and other business units

Cash generated from other investing

136800000.0016000000.00

activities

Subtotal of cash generated from

136803000.00156650726.74

investing activities

Payments for the acquisition of fixed

assets intangible assets and other long- 57988.92 59420.24

lived assets

Payments for investments

Net increase in pledged loans granted

Net payments for the acquisition of

subsidiaries and other business units

Cash used in other investing activities

Subtotal of cash used in investing

57988.9259420.24

activities

Net cash generated from/used in

136745011.08156591306.50

investing activities

9ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. First Quarterly Report 2023

3. Cash flows from financing activities:

Capital contributions received

Including: Capital contributions by

non-controlling interests to subsidiaries

Borrowings received 23000000.00 0.00

Cash generated from other financing

activities

Subtotal of cash generated from

23000000.000.00

financing activities

Repayment of borrowings

Interest and dividends paid 754516.80 0.00

Including: Dividends paid by

subsidiaries to non-controlling interests

Cash used in other financing activities

Subtotal of cash used in financing

754516.800.00

activities

Net cash generated from/used in

22245483.200.00

financing activities

4. Effect of foreign exchange rates

-113540.16-508619.70

changes on cash and cash equivalents

5. Net increase in cash and cash

-24361815.21-304979830.12

equivalents

Add: Cash and cash equivalents

190365069.48612293635.15

beginning of the period

6. Cash and cash equivalents end of the

166003254.27307313805.03

period

(II) Independent Auditor’s Report

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

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

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

29 April 2023

10