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深深房B:2025年年度报告（英文版）

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深深房B --%

2025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.2025 Annual Report Announcement No.: 2026-010 [March 20 2026] 12025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. 2025 Annual Report Section I Important Notes Table of Contents and Interpretations The Board of Directors the directors and the executives of the Company guarantee that there are no significant omissions fictitious or misleading statements carried in the Report and we will accept individual and joint responsibilities for the truthfulness accuracy and completeness of the Report.Principal CHEN Ming Chief Finance Officer WANG Jianfei and Chief Accountant (accounting officer) ZHOU Hongpu declare that they guarantee the authenticity accuracy and completeness of the financial report in the Annual Report.All directors attended the board meeting at which this report was considered.Certain descriptions about the Company’s operating plans or work arrangements for the future mentioned in this Report 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 Board has approved a final dividend plan as follows: based on the total share capital of 1011660000 shares a cash dividend of RMB0.35 (tax inclusive) per 10 shares is to be distributed to the shareholders with no bonus issue from either profit or capital reserves. 22025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Table of Contents Section I Important Notes Table of Contents and In... 2 Section II Company Profile and Major Financial Ind... 6 Section III Management's Discussion and Analysis ... 10 Section IV Corporate Governance Environment and So...32 Section V Significant Events ....................... 57 Section VI. Share Changes and Shareholder Informat.. 67 Section VII Bonds .................................. 74 Section VIII Financial Statements ...................75 32025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. List of Reference Documents 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. 2. The original of the Auditor’s Report with the stamp of the CPA firm as well as the personal signatures and stamps of the CPAs. 3. The originals of all the documents and announcements disclosed by the Company on the designated information disclosure media during the Reporting Period. 42025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Interpretations Item of interpretations Refers to Interpretations “Shenzhen SASAC” or the Refers to State-owned Assets Supervision and Administration Commission“Municipal SASAC” of Shenzhen Municipal People's Government SIHC Refers to Shenzhen Investment Holdings Co. Ltd.The Company the Group SPG or Shenzhen Special Economic Zone Real Estate & Properties "we" Refers to (Group) Co. Ltd.Shenzhen Property Management Refers to Shenzhen Property Management Co. Ltd.Petrel Hotel Refers to Shenzhen Petrel Hotel Co. Ltd.Zhentong Engineering Refers to Shenzhen Zhentong Engineering Co. Ltd.Huazhan Construction Supervision Refers to Shenzhen Huazhan Construction Supervision Co. Ltd Jianbang Group Refers to Guangdong Jianbang Group (Huiyang) Industrial Co. Ltd.Chuanqi Real Estate Development Refers to Shenzhen Shenfang Chuanqi Real Estate Development Co. Ltd.Guangmingli Refers to SPG Guangmingli Project Linxinyuan Refers to SPG Linxinyuan Project Cuilinyuan Refers to SPG Cuilinyuan Project 52025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Section II Company Profile and Major Financial Indicators I. Information about the Company Stock name SPG SPG-B Stock code 000029（200029） Stock exchange where the Company's stocks are listed Shenzhen Stock Exchange Chinese name Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.Abbreviation in Chinese 深房集团 Foreign name of the Company (if any) ShenZhenSpecial Economic Zone Real Estate&Properties (Group)co.，Ltd.Abbreviation of the Company's foreign name (if any) SPG Legal representative Chen Ming Registered address Floors A46-A48 and B46-B48 SPG Plaza No. 3005 Renmin South Road JiabeiCommunity Nanhu Street Luohu District Shenzhen Postal code of registered address 518001 Historical changes of the Company's registered address None Office address Floors 46-48 SPG Plaza No. 3005 Renmin South Road Shenzhen Postal code of business address 518001 Company's website http://www.sfjt.com.cn E-mail spg@sfjt.sihc.com.cn II. Contact person and contact information Secretary of the Board of Directors Securities affairs representative Name Luo Yi Hong Lu 47/F SPG Plaza Renmin South Road 47/F SPG Plaza Renmin South Road Contact address Luohu District Shenzhen Luohu District Shenzhen Guangdong P.R.China Guangdong P.R.China Tel. （86 755）25108897 （86 755）25108837 Fax （86 755）82294024 （86 755）82294024 E-mail spg@sfjt.sihc.com.cn spg@sfjt.sihc.com.cn III. Information disclosure and storage location Stock exchange websites where companies disclose annual reports Shenzhen Stock Exchange (http://www.szse.cn/) Name and website of the media where the Company Securities Times Shanghai Securities News and CNINFO discloses its annual report (http://www.cninfo.com.cn) Storage location of annual reports 47/F SPG Plaza No. 3005 Renmin South Road LuohuDistrict Shenzhen Guangdong P.R.China IV. Registration changes 62025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Unified social credit code 91440300192179585N Changes in primary business since the listing of the Company (if any) None.On 24 March 1999 the controlling shareholder was changed from Shenzhen Investment Management Co.Previous changes of controlling shareholder (if any) Ltd. to Shenzhen Construction Investment Holdings Co.Ltd. On 14 February 2006 it was changed to Shenzhen Investment Holdings Co. Ltd.V. Other relevant information Accounting firm engaged by the Company Name Pan-China Certified Public Accountants (Special GeneralPartnership) Office address 128 Xixi Road Lingyin Street Xihu District Hangzhou CityZhejiang Province China Signing accountants Wang Huansen Lin Zhenhua Sponsor engaged by the Company to perform continuous supervision during the reporting period □ Applicable√ Not applicable□ Financial consultant engaged by the Company to perform continuous supervision during the reporting period □ Applicable√ Not applicable□ VI. Main accounting data and financial indicators Whether the Company needs to retroactively adjust or restate the accounting data of previous years □ Yes √ No□ Increase/decrease this 2025 Year 2024 year compared with Year 2023 last year Operating revenue (RMB) 1482872299.36 407022191.44 264.32% 530887720.68 Net profit attributable to the shareholders of the 99956003.75 -176710947.65 156.56% -250839542.09 listed company (RMB) Net profit attributable to shareholders of listed companies after 234352924.49 -197979921.69 218.37% -267984286.36 deducting non-recurring profit or loss (RMB) Net cash flows from operating activities (RMB) -95319433.93 -127403949.79 25.18% 1045037248.19 Basic earnings per share (RMB/share) 0.0988 -0.1747 156.55% -0.2479 Diluted earnings per share (RMB/share) 0.0988 -0.1747 156.55% -0.2479 Weighted average rate of return on net assets 2.81% -4.91% 7.72% -6.52% Increase/decrease at As at the end of 2025 As at the end of 2024 the end of this year As at the end ofcompared with the end 2023 of last year 72025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Total assets (RMB) 3882782985.57 5987780656.67 -35.15% 6485312507.46 Net assets attributable to shareholders of the listed 3612323196.38 3512112493.42 2.85% 3691082484.20 company (RMB) The net profit of the Company in the last three fiscal years before and after deducting non-recurring profit or loss is negative and the audit report of the latest year shows that the going-concern ability of the Company is uncertain □ Yes √ No□ The lowest of the Company's audited total profit net profit and net profit attributable to the listed company’s shareholders after exceptional gains and losses during the reporting period was negative.□ Yes √ No□ VII.Differences between accounting data under domestic and foreign accounting standards 1. Differences in net profit and net assets in the financial reports disclosed in accordance with the international accounting standards and the Chinese accounting standards □ Applicable√ Not applicable□ During the reporting period of the Company there was no difference in net profits and net assets in financial reports disclosed in accordance with international accounting standards and Chinese accounting standards 2. Differences in net profit and net assets in financial reports disclosed in accordance with both the international accounting standards and Chinese accounting standards □ Applicable√ Not applicable□ During the reporting period of the Company there was no difference in net profits and net assets in financial reports disclosed in accordance with the international accounting standards and Chinese accounting standards VIII. Main financial indicators by quarter Unit: RMB Q1 Q2 Q3 Q4 Operating revenue 330053200.67 307313020.68 261486861.10 584019216.91 Net profit attributable to shareholders of the 72421123.75 30606522.67 42090029.10 -45161671.77 listed company Net profit attributable to shareholders of listed companies after 68102809.31 26249678.66 37588629.07 102411807.45 deducting non- recurring profit or loss Net cash flows from operating activities -18784578.27 -68637663.31 -4582204.79 -3314987.56 Whether the above financial indicators or their aggregate are significantly different from the financial indicators related to the Company's disclosed quarterly and semi-annual reports □ Yes √ No□ IX. Non-recurring profit or loss items and amounts 82025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. □√Applicable □Not applicable Unit: RMB Item Amount in 2025 Amount in 2024 Amount in 2023 Notes Profit or loss on disposal of non-current assets (including write-off of provision for asset -151762085.94 740874.42 9940254.23 impairment) Government subsidies included in the current profit or loss (except for those that are closely related to the Company's normal business operations comply with national policies and 753298.54 440049.96 regulations are enjoyed according to determined standards and have a sustained impact on the Company's profit or loss) Gain/Loss on entrusting others with investments or asset management 16621332.22 18461736.59 7985840.50 Reversal of provision for impairment of accounts receivable subject to separate 3994030.79 impairment test Non-operating revenue and expenses other than the above-mentioned items 940511.89 2170518.43 393461.44 Less: income tax effects 210384.02 863081.95 5639314.23 Affected amount of minority interests (after tax) -13705.11 -5628.01 -30421.58 Total -134396920.74 21268974.04 17144744.27 -- Specific circumstances of other profit or loss items that meet the definition of non-recurring profit or loss: □ Applicable√ Not applicable□ The Company had no specific profit or loss items that meet the definition of non-recurring profit or loss.Notes on the definition of the non-recurring profit or loss items listed in the "Interpretive Announcement No. 1 on Information Disclosure of Companies Issuing Securities to the Public - Non-recurring Profit or Loss" as recurring profit or loss items □√Applicable □Not applicable Item Amount involved(RMB) Reasons Refund of service fee for withholding Continuously occurring from year to year not individual income tax 31652.46 occasional recognized as recurring gains and losses 92025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Section III Management's Discussion and Analysis I. Main business engaged in by the Company during the reporting period The Company shall comply with the disclosure requirements for the real estate industry as set out in the Guidelines for Self-Regulation of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure The Company focuses on the development of residential properties. Its projects for sale are mainly located in Shenzhen and Shantou including SF Cui Lin Yuan in Shenzhen and Tianyue Bay in Shantou. The Company is specialised in residential real estate development with on-sale projects mainly distributed in Shenzhen and Shantou. These include Cuilinyuan in Shenzhen and Tianyuewan in Shantou.New land reserve projects Capacity Equity Land parcel Land Land area building Land Total land considerati or project Location planning (m2< area Acquisition Equity ratio price name purpose /sup>) (m2< Method (RMB1000 on 0) (RMB1000/sup>) 0) Cumulative Land Reserve Total floor area (10000 Total construction area Remaining developable floorProject/Area name m2) (10000 m2) area (10000m2) Shantou Xinfeng Building 0.59 2.66 2.66 Total 0.59 2.66 2.66 Development of main projects Complete Estimate TotalPlanned d area of Cumulati d total accumula City/Regi Project Equity Comme Developm Schedule Land capacity ve ted Project Location nceme ent of area building the current complete investme investme on format ratio ntnt time progress completion (m area2) (m period d area (m amount nt 2) (m (RMB10 amount 2) 2) 000) (RMB10000) Sales of main projects Cumulativ The Amount ofpre-sale Cumulativ Settlement Settlement Capacity Salable e pre-sale current (sale) in e area in the amount inCity/Regio Project Location Project Equity area (sales) period settlement current the currentn format ratio buildingarea (m2 area pre-sale the current area period period ) (m2 (sales) period (m2 (m2 (RMB100 ) area (m2) (RMB10000) ) ) 00) Shenzhen Cuilinyuan Longgang Ready forDistrict sale 100.00% 60111 56137 54393.38 0 0 54393.38 0 0 Shantou Tianyuewa Chaoyang Ready forn Phase I District sale 100.00% 153470 160372 122486.86 1806.32 1012.4 121646.61 2232.21 823.41 Shantou Tianyuewa Chaoyang Ready forn Phase II District sale 100.00% 127770 137059 50858.58 8854.16 5159.3 48537.71 6802.53 3371.83 Shenzhen Guangmin Guangmin Ready forgli g area sale 100.00% 53605 51975 36041.35 383.86 1256 35742.02 31138.84 127733.7 Leasing of main projects Accumulated Project Location Project format Equity ratio Rentable area(m2) leased area Average (m2) occupancy rate Real Estate Mansion Shenzhen Commercial 100.00% 3413.88 3413.88 100.00% 102025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. North Tower of Guoshang Shenzhen Commercial 100.00% 4819.71 4819.71 100.00% Mansion Petrel Building Shenzhen Commercial 100.00% 22475.47 22475.47 100.00% SPG Plaza Shenzhen Office building 100.00% 58382.15 26811.48 45.92% Podium of SPG Plaza Shenzhen Commercial 100.00% 20377.02 18469.49 90.64% Wenjin Garden Shenzhen Commercial 100.00% 3531.6 3531.6 100.00% Level-I land development □ Applicable√ Not applicable□ Financing approach Financing Term structure Financing balance at the Financing cost end of the range/averageapproach period financing cost Within 1 year 1-2 years 2-3 years Over 3 years (RMB10000) (RMB10000) Others 737.991 1.2%-2.4% 737.99 Total 737.99 737.99 Note: 1. Others are borrowings from accounts receivable factoring.Development strategy and business plan for the next year Please refer to “Prospects” in this part of the Report.Guarantee to buyers of commercial housing for bank mortgage □√Applicable □Not applicable Guaranteed Financial institutions for Guaranteed unit loans borrowing amount Maturity date of guarantee Remark(RMB10000) Until the property ownership certificate HomebuyersChina Construction Bank 38.85 is registered as collateral and handed Shanglinyuan over to bank for keeping China Construction Bank Until the property ownership certificateHomebuyersAgricultural Bank of China 151.43 is registered as collateral and handed Cuilinyuanover to bank for keeping Until the property ownership certificate Chuanqi HomebuyersChina Construction Bank 631.55 is registered as collateral and handed Donghu over to bank for keeping Mingyuan Industrial and Commercial HomebuyersBank of China Bank of Until the property ownership certificate China Postal Savings 1787.98 is registered as collateral and handed Tianyuewan Bank over to bank for keeping Industrial and Commercial Bank ofChina Huaxia Bank Rural Commercial Until the property ownership certificate HomebuyersBank Agricultural Bank ofChina Postal Savings 15557.88 is registered as collateral and handed Guangmingli Bank of China China over to bank for keeping Merchants Bank Bank of China Sub-total 18167.69 Joint investments by directors and senior management and the listed company (applicable for such 112025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. investments where the directors and senior management are the major source of investment): □√Applicable □Not applicable Matching of actual Type of Investment Proportion of Accumul Project investment amount investment Peak ratio of ated investment project funds income Exit status amount andentity (RMB) amount (RMB) amount ofincome distribution Directors The co- supervisors investment in this and project wasLinxinyuan terminated in Not Project senior 0.00 0.00% 0.00% 0.00 June 2025 and applicable management the co-investment of the funds were fully Company returned.II. Industry Overview for the Reporting Period The Company shall comply with the disclosure requirements for the real estate industry as set out in the Guidelines for Self-Regulation of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure Facing the profound and complex changes in both domestic and international situations in 2025 the CPC Central Committee with Comrade Xi Jinping at its core has steered the course and taken charge of the overall situation. It has coordinated both domestic and international imperatives balanced the development and security adhered to the general principle of seeking progress while maintaining stability implemented more proactive and effective macroeconomic policies deepened the development of a unified national market and propelled China's economy forward against headwinds toward new and higher-quality development. In the industry it is explicitly proposed in the recommendations of the 15th Five-Year Plan to construct "good houses" that are safe comfortable green and smart. It is further clarified on the Central Economic Work Conference held in December 2025 to orderly promote the construction of "good houses" marking a shift in the industry's development logic from "having a place to live" to "living well." III. Analysis of core competitiveness As the earliest real estate developer founded in the Shenzhen Special Economic Zone the Company helped build the early city and has created a number of "first places" in the history of real estate development in China. For example the first to use the paid state- owned land the first to introduce the foreign investment for the cooperative land development the first to raise development funds by means of pre-sale of buildings the first to carry out public bidding for construction projects in accordance with international practices the first to set up a property management company to the buildings and residences developed in an all-rounded manner as well as winning the bid in the new China’s first auction of land use rights held in the Shenzhen Special Economic Zone.After more than 40 years of development the Company has grown into a business group with real estate development and operation as its main business integrating engineering and construction project supervision asset management and other diversified operations.In the future the Company will actively cultivate and promote a corporate culture of compliance integrity and excellence. It will remain committed to giving back to society with high-quality products and building its reputation through quality striving to become a respected and trustworthy listed company. 122025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. During the reporting period the Company received several awards including the "Top 20 Greater Bay Area Listed Companies for Green Governance 2025" the "2025 Listed Company ESG Value Communication Award" and the "Top 20 A-share Listed Companies for ESG Performance in Real Estate Industry 2025." The SPG Plaza project was awarded the "2024 Outstanding Leasing Project Award".IV. Analysis of primary business 1. Overview The year 2025 is the final year of the 14th Five-Year Plan and a crucial year for the Company to overcome challenges and forge ahead. Facing a complex and challenging internal and external environment the Company has focused on its core tasks intensified its efforts and taken concrete actions to promote a steady and improving trend in its development with enhanced quality. Looking back on the year the Company has focused on and made solid progress in the following key areas: (I) Achieving good performance in the core business with targeted and joint efforts.i. Making every effort for marketing The Guangmingli project has achieved 100% clearance of the housing resource approved by the government for sale and the handover process has been successfully completed. The total sales area of Shantou Tianyuewan Project increased by 56% year-on-year with sales revenue growing by 63% year-on-year. ii. Focusing on improving the quality and efficiency of our property operations. As of the end of 2025 the consolidated average occupancy rate of the Group's self-owned properties reached 90.9%. The renovation of the rooftop helipad at SPG Plaza was successfully completed and thus SPG Plaza was granted as the "Low- Altitude Economy Industrial Building" by the Government of Luohu District. iii. Fully tapping the operational potential of our subsidiaries. Petrel Hotel surpassed its annual performance targets for both operating revenue and total profit. Zhentong Engineering made substantial breakthroughs in market expansion within the system. The Shantou Branch achieved a 100% rent collection rate for Zhongshan East Market. Huazhan Construction Supervision undertook three external supervision projects. Chuanqi Real Estate Development completed the setup of its organizational structure and business processes officially transitioning to specialized commercial operation and management.(II) Achieving positive results in risk prevention and resolution by securing the baseline and concentrating on tackling tough issues. First we prudently mitigated the project risks. We won favorable judgments in cases such as the RMB 344 million loan contract dispute involving Jianbang Company. The declaration of creditor claims for the bankruptcy liquidation of Jianbang Company is progressed smoothly. Second we effectively prevented and controlled the safety risks. We thoroughly advanced the "Three- Year Action Plan for Addressing the Root Causes of Workplace Safety Issues" with 91 safety inspections conducted 373 safety hazards identified and a 100% rectification rate achieved throughout the year. Third we properly handled the stability-related risks. We formulated special work plans to properly handle the matters such as the handover of the SPG Guangmingli Project outstanding payments to suppliers of SPG Lixinyuan Project and employee co-investment ensuring no major petitioning or public opinion incidents occurred throughout the year.(III) Strengthening foundations and focusing control to achieve significant improvements in capabilities. First our governance system was further improved. We optimized the organizational structure and the list of powers and responsibilities of the headquarters to further clarify the management authorities and responsibilities. We continued to optimize and adjust our system of rules and regulations revising or establishing 102 policies throughout the year. Second our management support became more robust. We organized the special training programs such as "Training for Management and Reserve Talents" and "Intelligent AI Applications"; we deepened the development of database on "Good House" information and house types and compiled the "Leasing Operation Manual" to enhance the employees' professional performance 132025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. capabilities. We strengthened the centralized fund management to ensure the standardized and efficient use of funds. Third the efficiency of our corporate management became more prominent. The disposal work of inefficient/ineffective assets and non-core/non-dominant businesses was advanced continuously with progress made in the divestment of Shenzhen Zhentong New Electromechanical Industrial Development Co. Ltd. and Xinfeng Real Estate Development and Construction (Wuhan) Co. Ltd.(IV) Raising awareness and focusing on planning to promote continuous exploration and promotion of future development. First we strengthened the strategic coordination and organizational support. We established a dedicated task force to scientifically define the task divisions and clearly assign the primary responsibilities.Second we deepened the research on future development paths and project reserves.We closely tracked the latest regulatory rules and capital market trends deepened the policy interpretation and forward-looking analysis and strengthened the communication with controlling shareholders and professional institutions to build a regular collaborative mechanism and expand the high-quality project resources.(V) The guiding and orienting role is more prominent with party building as guidance and integrated efforts. First we strengthened the political building to earnestly fulfill our responsibilities and mission. We made solid progress in thoroughly implementing the central Party leadership's eight-point decision on improving work conduct organizing 132 times of special subject learning throughout the year. Second we deepened the integration of Party building and business operations focusing on mutual promotion to enhance efficiency. We dynamically optimized the list of "three major and one large" decision-making matters. The Group's Party Committee reviewed 227 major business and management matters throughout the year effectively leveraging the political and organizational functions of the Party organization. Third we strictly governed the Party resolutely enforced the discipline and promoted a new trend of conduct. We consolidated the primary and supervisory responsibilities for exercising full and strict governance over the Party and signed the responsibility letters for Party conduct and clean governance at all levels. We innovatively promoted the integrated mechanism of ensuring that officials "dare not cannot and do not want to be corrupt" with 26 reminder talks conducted. We created the culture brand of "Clean and Virtuous SPG" launching the original cultural works such as themed micro-videos and sitcoms leading to a continuous improvement in the political ecosystem. 2. Revenue and cost (1) Composition of operating revenue Unit: RMB 2025 Year 2024 Amount Percentage of Percentage of YoY change operating revenue Amount operating revenue Total operating revenue 1482872299.36 100% 407022191.44 100% 264.32% By industry Real estate 1324656290.59 89.33% 162523053.49 39.93% 715.06% Engineering construction 81299490.77 5.48% 160327744.72 39.39% -49.29% Property management 3289025.70 0.22% 3644981.08 0.90% -9.77% Rental and others 73627492.30 4.97% 80526412.15 19.78% -8.57% By product Residence 1323692839.30 89.27% 142671853.48 35.05% 827.79% 142025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Shops and parking lots 963451.29 0.06% 19851200.01 4.88% -95.15% Others 158216008.77 10.67% 244499137.95 60.07% -35.29% By region Guangdong Province 1482174330.27 99.95% 406326508.54 99.83% 264.77% Overseas 697969.09 0.05% 695682.90 0.17% 0.33% Subsales model Main business 1475508650.42 99.50% 399806208.89 98.23% 269.06% Others 7363648.94 0.50% 7215982.55 1.77% 2.05% (2) Industry product region and sales model accounting for more than 10% of the company's operating revenue or operating profit □√Applicable □Not applicable Unit: RMB Operating YoY change in revenue Operating costs Gross margin operating YoY change in YoY change in revenue operating costs gross margin By industry Real estate 1324656290.59 937154626.27 29.25% 715.06% 637.42% 34.17% Engineering construction 81299490.77 82326326.57 -1.26% -49.29% -46.66% -133.78% Rental and others 73627492.30 47859287.75 35.00% -8.57% 3.34% -17.63% By product Residence 1323692839.30 936338669.36 29.26% 827.79% 696.65% 66.06% By region Guangdong 1482174330. 1067340240.Province 27 59 27.99% 264.77% 221.84% 52.29% Subsales model Under the circumstances that the calculation method of the Company's main business data is adjusted during the reporting period the Company's main business data for the latest period is adjusted according to the calculation method at the end of the reporting period □ Applicable√ Not applicable□ (3) Whether the company's physical sales revenue is greater than the revenue of labor services □√ Yes □ No Industry classification Item Unit 2025 Year 2024 YoY change Sales volume RMB'0000 7649.70 22139.68 -65.45% Real estate development Production volume RMB'0000 647.34 22206.96 -97.08% Inventory RMB'0000 115387.58 440320.07 -73.79% Reasons for the YoY change of more than 30% in relevant data □√Applicable □Not applicable 152025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. In 2025 the Company's real estate sales volume and production volume both decreased compared to the previous year. The inventory decreased year-on-year mainly due to the sales carry-over completed for SPG Guangmingli Project in 2025 and the exclusion of Guangdong Jianbang Group (Huiyang) Industrial Co. Ltd. that was taken over by a bankruptcy administrator for bankruptcy and liquidation on November 30 2025. (4) Performance of major sales contracts and major procurement contracts signed by the Company as of the reporting period □ Applicable√ Not applicable□ (5) Composition of operating costs Industry classification Industry classification Unit: RMB 2025 Year 2024 Industry classification Item Amount Proportion in Proportion in YoY change operating costs Amount operating costs Real estate 937154626.27 87.60% 127086267.87 38.24% 637.42% Engineering construction 82326326.57 7.70% 154348805.43 46.45% -46.66% Property management 2472204.15 0.23% 2406037.36 0.72% 2.75% Rental and others 47859287.75 4.47% 48484539.64 14.59% -1.29% Notes The completion of sales carry-over for SPG Guangmingli Project in 2025 led to a year-on-year increase in the cost of real estate sales; affected by the market environment the construction workload decreased year-on-year. (6) Whether there was any change in the consolidation scope during the reporting period □√ Yes □ No For details on changes in the scope of consolidation during the reporting period please see "Section VIII Financial Statements"。 (7) Information about significant changes or adjustments in the Company's business products or services during the reporting period □ Applicable√ Not applicable□ (8) Main sales customers and suppliers Main sales customers of the Company Total sales amount of top five customers (RMB) 48459602.74 Ratio of top 5 customers' sales to total annual sales 3.27% Ratio of related-party sales among top 5 customers to total annual sales 0.00% Information on the Company's top 5 customers No. Customer name Sales amount (RMB) Ratio in total annual salesamount 1 Legal Person I 23341087.14 1.57% 2 Legal Person II 8224927.22 0.55% 162025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. 3 Legal Person III 6245043.43 0.42% 4 Natural Person I 5325874.31 0.36% 5 Natural Person II 5322670.64 0.36% Total -- 48459602.74 3.27% Other information of main customers □ Applicable√ Not applicable□ Main suppliers of the Company Total purchase amount of top five suppliers (RMB) 37511053.77 Ratio of total purchase amount of the top five suppliers in the total annual purchase amount 23.55% Ratio of related-party purchases among top 5 suppliers to total annual purchases 0.00% Information on the Company's top 5 suppliers No. Supplier name Purchase amount (RMB) Ratio in the annual purchaseamount 1 Legal Person I 12783347.35 8.03% 2 Legal Person II 7636875.15 4.80% 3 Legal Person III 6506982.53 4.09% 4 Legal Person IV 5497060.00 3.45% 5 Legal Person V 5086788.74 3.19% Total -- 37511053.77 23.55% Other information of main suppliers □ Applicable√ Not applicable□ During the reporting period the Company's trading business revenue accounted for more than 10% of its operating revenue □ Applicable√ Not applicable□ 3. Costs Unit: RMB 2025 Year 2024 YoY change Explanation of significant changes Selling and distribution 20775223.41 13164672.93 57.81% Mainly due to an increase in referral expenses agency fees and commissions.G&A expenses 72505249.03 70118532.01 3.40% Mainly due to a decrease in the Financial expenses -1220135.02 -5502747.12 77.83% average balance of bank deposits and a decrease in deposit interest income compared to the same period last year.R&D expenses 0.00 0.00 4. R&D investment □ Applicable√ Not applicable□ 172025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. 5.Cash flows Unit: RMB Item 2025 Year 2024 YoY change Sub-total of cash inflows from operating activities 268464376.68 485135222.14 -44.66% Sub-total of cash outflows from operating activities 363783810.61 612539171.93 -40.61% Net cash flows from operating activities -95319433.93 -127403949.79 25.18% Sub-total of cash inflows from investing activities 1115186529.17 1866393.80 59650.87% Sub-total of cash outflows from investing activities 1161905620.00 91547315.83 1169.19% Net cash flows from the investing activities -46719090.83 -89680922.03 47.91% Sub-total of cash inflows from financing activities 50000.00 1563000.00 -96.80% Sub-total of cash outflows from financing activities 99922535.86 122813684.41 -18.64% Net cash flows from financing activities -99872535.86 -121250684.41 17.63% Net increase in cash and cash equivalents -242018333.57 -338236158.91 28.45% Description of main influencing factors of significant YoY changes in relevant data □√Applicable □Not applicable Cash inflow from operating activities decreased year on year mainly due to the decrease in real estate sales volume and engineering construction volume. Cash used in operating activities decreased year on year primarily driven by the decreased development and construction of real estate projects. Net cash flow from investing activities increased year-on-year mainly driven by decreased purchase of financial products. Cash inflow from financing activities decreased year-on-year mainly driven by decreased new bank borrowing raised this period. Cash outflow from financing activities increased year-on-year mainly driven by repaying bank borrowings in this period Explanation of the reasons for the significant difference between the net cash flow generated from the operating activities of the Company and the net profit of the current year during the reporting period □√Applicable □Not applicable There is a big difference between the net operating cash flow and the net profit for the year primarily due to the long time span between property development sales and revenue recognition.V. Analysis of non-primary business □ Applicable√ Not applicable□ VI. Analysis of assets and liabilities 1. Major changes in asset composition Unit: RMB As at the end of 2025 Early 2025 Increase/decre Explanation of ase in significant Amount Ratio of total Ratio of totalassets Amount assets percentage changes 182025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Mainly due to the purchase of money market funds Monetary funds 284686525.04 7.33% 529242725.36 8.84% -1.51% repayment of bank loans and payment of taxes during the year.Accounts receivable 44898083.74 1.16% 56672795.52 0.95% 0.21% Contract assets 29035256.28 0.75% 30888723.09 0.52% 0.23% Mainly driven Inventories 1099359619. 28.31% 3636840229. 60.74% -32.43% by the carry-25 34 over of real estate revenue.Investment properties 522634659.17 13.46% 515925116.54 8.62% 4.84% Long-term equity 0.00 0.00% 0.00 0.00% 0.00% investments Fixed assets 14949900.45 0.39% 17489207.57 0.29% 0.10% Construction in progress 571822.67 0.01% 0.00 0.00% 0.01% Right-of-use assets 0.00 0.00% 0.00 0.00% 0.00% Short-term borrowings 50000.00 0.00% 1563000.00 0.03% -0.03% Mainly driven by the revenue Contract from the liabilities 28400659.20 0.73% 1298146232. 35 21.68% -20.95% transfer ofadvanced sales proceeds from property sales.Mainly driven Long-term by repaying borrowings 0.00 0.00% 62273677.82 1.04% -1.04% bankborrowings in this period.Lease liabilities 0.00 0.00% 0.00 0.00% 0.00% Mainly driven Financial by the assets held for 1050256058.41 27.05% 987801938.51 16.50% 10.55% purchase oftrading money market funds.Mainly driven by the deconsolidation of the holding Accounts subsidiary due payable 171738333.04 4.42% 464488982.30 7.76% -3.34% to bankruptcy and liquidation of which the accounts payable were no longer 192025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. included in the scope of consolidation.Taxes payable 26922082.58 0.69% 27554810.01 0.46% 0.23% Mainly driven by the deconsolidation of the holding subsidiary due to bankruptcy Other payables 144280409.16 3.72% 561016653.17 9.37% -5.65% and liquidationof which the other related payables were no longer included in the scope of consolidation.Mainly driven by the deconsolidation of the holding subsidiary due to bankruptcy Other 747900491.52 19.26% 7438040.83 0.12% 19.14% and liquidationreceivables of which the transactions with related parties at the consolidation level were no longer offset High proportion of overseas assets □ Applicable√ Not applicable□ 2. Assets and liabilities measured at fair value □√Applicable □Not applicable Unit: RMB Profit or loss from Cumulative Impairment Amount Amount Item Beginning changes in changes in fair value provision in purchased sold in the Other Ending balance fair value in the current in the current changes balance the current included in currentequity period period periodperiod Financial assets 1. Financial assets held for trading (excluding 98780193 16621332. 11600000 11141672 10502560 derivative 8.51 22 00.00 12.32 58.41 financial assets) 4. Other equity instrument 14697341. - 14571511.investment 18 125829.37 81 s Total of the 10024992 16495502. 11600000 11141672 10648275 202025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. above 79.69 85 00.00 12.32 70.22 Financial liabilities 0.00 0.00 Other changes Whether there were significant changes in the measurement attributes of the Company's major assets during the reporting period □ Yes √ No□ 3. Restrictions on asset rights as of the end of the reporting period (1) Restricted assets at the end of the period Unit: RMB Item Ending bookbalance Closing book value Restricted type Reason for restriction Project of public facilities inside and surrounding the Monetary funds 5674439.78 5674439.78 Detain urban renewal project ofLonggang District Shenzhen-construction funds Monetary funds 50154.19 50154.19 Detain Construction deposit Monetary funds 70010.20 70010.20 Detain Stop payments suspendaccounts Accounts receivable 7379890.15 7158493.45 Pledged Put in pledge for short- term borrowings Total 13174494.32 12953097.62 (2) Restricted assets at the beginning of the period Unit: RMB Item Beginning bookbalance Opening book value Restricted type Reason for restriction Project of public facilities inside and surrounding the urban renewal project of Monetary funds 5817217.78 5817217.78 Detain Longgang District Shenzhen-construction funds; land reclamation costs of Guangmingli Project Monetary funds 2306548.48 2306548.48 Frozen Legitigation freeze Monetary funds 50155.58 50155.58 Detain Construction deposit Monetary funds 158549.08 158549.08 Detain Stop paymentssuspend accounts Accounts receivable 4918250.30 4770702.79 Pledged Put in pledge for short- term borrowings Inventories 234599800.76 161509611.70 Litigation Supplier litigationpreservation preservation Investment properties 137329055.83 38505029.10 Mortgage Loan mortgage 212025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Total 385179577.81 213117814.51 VII. Analysis of investment status 1. Overall situation □√Applicable □Not applicable Amount of Reporting Period (RMB) Amount of the same period of last year(RMB) Change (%) 25060000.00284195236.43-91.18% 2. Major equity investments acquired during the reporting period □ Applicable√ Not applicable□ 3. Major non-equity investments in progress during the reporting period □ Applicable√ Not applicable□ 4. Investment in the financial assets (1) Securities investment □ Applicable√ Not applicable□ The Company had no securities investment during the reporting period. (2) Derivative investment □ Applicable√ Not applicable□ The Company had no derivative investment during the reporting period.VIII. Sales of major assets and equities 1. Sales of major assets □ Applicable√ Not applicable□ The Company did not sell major assets during the reporting period. 2. Sale of major equity □ Applicable√ Not applicable□ IX. Analysis of major holding and participating companies □√Applicable □Not applicable Major subsidiaries and participating companies with an impact of 10% or more on the Company's net profit Unit: RMB Company name Company type Main business Registeredcapital Total assets Net assets Operating revenue Operating profit Net profit Shenzhen Shenfang Chuanqi Real Subsidiaries Real estate 30000000 1664867774.6 1254991892.4 1277337034.8Estate development 7 4 4 342666494.02 257063506.72 Development Co. Ltd.Shenzhen Properties Group Real estate Longgang Subsidiaries development 30000000 94092259.97 64330329.67 2134413.54 -125690.81 608978.96 Development Co. Ltd. 222025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Shantou Hualin Real Estate Development Subsidiaries Real estate development 91226120.44 104618357.01 52388495.44 382221.71 -512394.53 12319773.20 Co. Ltd.Shantou Huafeng Real Estate Subsidiaries Real estatedevelopment 80000000 703978834.31 -52825483.96 42409792.23 -5266936.92 -5266934.95Development Co. Ltd.Great Wall Real EstateCo. Ltd. Real estate in the Subsidiaries development 2051146 19946289.06 -91799069.07 697969.09 -328980.98 -328980.98 UnitedStates Shenzhen Zhentong Subsidiaries Installation andEngineering maintenance 10000000 94758959.89 2871707.88 89329264.64 -10376700.29 -10376700.29 Co. Ltd.Shenzhen Property leasing Petrel Hotel Co. Subsidiaries and 30000000 56581578.88 42248291.56 19556350.49 1369528.56 862910.96 Ltd. management Shenzhen Huazhan Construction Subsidiaries Supervision 8000000 11051237.33 10684333.61 2483707.18 49445.95 46861.94 Supervision Co.Ltd Xinfeng Enterprise Co. Subsidiaries Investmentmanagement 502335 332353762.54 -233575962.99 0.00 -1845359.26 -1845359.26Ltd.Information on acquisition and disposal of subsidiaries during the reporting period □√Applicable □Not applicable 232025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Methods of acquisition and disposal of Company name subsidiaries during the reporting Impact on overall production period operation and performance Guangdong Jianbang Group Transferred to the liquidation team for Entry to bankruptcy liquidation (Huiyang) Industrial Co. Ltd. management procedures Notes to main holding and participating companies 1. In October 2021 the Company won the bid for a land plot in Guangming District and established the project company Shenzhen SPG Chuanqi Real Estate Development Co. Ltd. to be responsible for the development and construction of the land. In November 2024 the Company completed the acceptance of the construction project. In 2025 the carryover revenue reached RMB 1277.337 million accounting for 96.43% revenue from the Group’s real estate sector and 86.14% of the Group’s operating income. 2. The subordinate subsidiaries engaged in real estate development also include: Shenzhen SPG LonggangDevelopment Co. Ltd. Shantou SEZ Wellam FTY Building Development Co. Ltd. Shantou Huafeng RealEstate Development Co. Ltd. The Cuilinyuan project developed by Shenzhen SPG Longgang Development Co. Ltd. and Jinyedao and Yuejing Dongfang developed by Shantou SEZ Wellam FTY Building Development Co. Ltd. left a few amount of remaining buildings for sale. 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 open for sale in October 2016 and completed in December 2019. The Phase II started construction in November 2018 and was completed at the end of June2021. As of December 31 2025 the overall sales progress is relatively slow with an accumulated sales rate of about 76.37% for Tianyuewan Phase I and 37.11% for Phase II. 3. Shenzhen Zhentong Engineering Co. Ltd. was engaged in the business of building installation and maintenance with the 2025 operating revenues of RMB89.3293 million and of 6.02% to the operating revenues of the Company. 4. The 2025 net profit of Xin Feng Enterprise Co. Ltd. was of RMB-1.8454 million which mainly due to the depreciation and amortization of investment property. 5. Guangdong Jianbang Group (Huiyang) Industrial Co. Ltd. was taken over by a bankruptcy administrator for bankruptcy and liquidation on November 30 2025 and thus it is no longer included in the scope of consolidation.X. Structured entities controlled by the Company □ Applicable√ Not applicable□ XI. Prospects for the future development of the Company (I) Industry pattern and trend Currently China's real estate industry is in a dynamic bottoming-out process with accelerated integration of the industrial chain and market resources increasingly concentrating in leading enterprises. The industry's development logic is shifting from "having a place to live" to "living well" presenting new opportunities and challenges.(II) Potential risks and countermeasures 1. Macroeconomic risks and countermeasures Currently the external environment is confronted with complex challenges such as frequent geopolitical conflicts and accelerated anti-globalization and China's economy has a solid foundation numerous advantages strong resilience and great potential with the supporting conditions and fundamental trend of long-term positive growth unchanged.The real estate industry has a greater correlation with the macroeconomy and is more influenced by the macroeconomic cycle. The Company will continue paying close attention to the international and domestic macroeconomic situations and proactively adjust its operation strategies. 2. Industry development risks and countermeasures At this stage as existing policies continue to show effects new policies are effectively 242025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. implemented and the combined impact of policies is continuously released the real estate market is in the critical stage of stabilizing and halting the decline amid fluctuations.Nevertheless for some time to come the real estate industry will still face many risks and potential hidden dangers including intensified market differentiation and insufficient willingness of property developers to acquire land and the market competition pattern will present a new situation. The Company will closely monitor industry policies follow national strategic direction continuously optimize the business development path and actively explore innovative operating models to better adapt to changes in the external environment. 3. Business operating risks and countermeasures Against the backdrop of increasingly fierce competition in the real estate market the Company is facing challenges such as insufficient reserves of development land resources difficulties in selling inventory projects and a lack of substantial results in new business expansion all of which are putting pressure on corporate operation and development. The Company will closely monitor market dynamics and industry policy trends focus on property leasing and sales the operations of its subsidiaries and business expansion and actively seek innovative models and paths that align with its actual development needs to flexibly respond to market challenges and explore broader development space.(III) Development strategy and business plan In 2026 the primary guiding principle for SPG's work is: to adhere to Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era thoroughly implement the spirit of the 20th CPC National Congress and its plenary sessions as well as the Central Economic Work Conference adhere to the general principle of seeking progress while maintaining stability and take Party building as the guide to coordinate and advance all key tasks. Through solid and effective work we will ensure the full completion of our annual goals and tasks laying a solid foundation for a good start to the 15th Five-Year Plan. 1. Adhere to seeking progress while maintaining stability and focus on improving quality and efficiency to strengthen our core. First optimize the marketing strategies and expand sales channels to accelerate the reduction of existing real estate inventory.Second efficiently revitalize our own property resources and enhance the quality and efficiency of asset operations to provide strong support for the Company's development.Third strengthen the responsibility of the affiliated enterprises stimulate their inherent potential and market competitiveness and gather a powerful force for the development of the Company. 2. Adhere to the strategic guidance and strengthen the top-level design for overall planning. First scientifically plan the Group's work for the 15th Five-Year Plan by closely following the direction of national macroeconomic policies and the reform and development trends of state-owned assets and state-owned enterprises. Second Unite the efforts of all parties and explore high-quality investment opportunities to open up new horizons for the Company's development. Third promote the high-standard construction of the characteristic industrial platform of SPG Plaza based on the development foundation of Luohu District's characteristic industries. 3. Adhere to the bottom-line thinking and strengthen the risk prevention and control to solidify our foundation. First resolutely uphold the bottom-line safety goals by effectively implementing the responsibilities for workplace safety and enhancing the precision of accident prevention and the timeliness of response. Second focus on tackling the historical risks formulate the rectification plans for each item to strictly prevent risk spillover. Third fully fulfill the responsibilities for handling public complaints and maintaining stability as well as for public opinion management and resolutely prevent the ideological risks and major sudden instability incidents. 252025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. 4. Adhere to lean management and deepen reform and innovation to enhance the efficiency. First strengthen and optimize the departments at the headquarters promote the subsidiaries to become more refined specialized larger and stronger in their respective subdivisions through differentiated approaches and at the same time improve the echelon building of talents. Second strengthen the core of governance deepen ESG governance and market value management improve compliance management and internal control systems and enhance financial coordination and fund management.Third further promote the refined cost management strictly control all capital expenditures and strictly investigate and punish acts of extravagance and waste. 5. Adhere to the guidance of Party building and consolidate the core strength to enhance the cohesiveness of our Company. First comprehensively strengthen Party building consolidate the responsibility system for Party building and promote the all- round progress and excellence of primary Party organizations. Second comprehensively promote the construction of Party building brand deepen the development of model branch strengthen the leadership of Party building over mass organizations and create a strong atmosphere of unity hard working and entrepreneurship. Third advance the full and strict governance over the Party strengthen the integrity-focused publicity and education promote the integration and synergy of discipline inspection with other supervision mechanisms such as audit finance and compliance and jointly build a system where officials dare not cannot and do not want to be corrupt.XII. Reception survey communication interview and other activities during the reporting period □√Applicable □Not applicable Reception time Reception Reception Type of Index of basic place mode reception Reception object Main contents discussed and object information provided information of the survey January 02 The Written Individual Individual Inquire about the number of2025 Company inquiry investor shareholders Not applicable January 6 2025 The WrittenCompany inquiry Individual Individual Inquire about the number of investor shareholders Not applicable January 13 The Written Individual Individual Inquire about the number of2025 Company inquiry investor shareholders Not applicable January 20 The Telephone 2025 Company communicati Individual Individual Inquiry about the consulting on investor company's business Not applicable January 21 The Written Individual Individual Inquire about the number of2025 Company inquiry investor shareholders Not applicable February 5 The Written Individual Inquire about the number of 2025 Company inquiry Individual investor shareholders Not applicable Online February 10 The communicati 2025 Company on on the Individual Individual Inquiry about measures to prevent network investor air pollution Not applicable platform February 11 The Written Individual Individual Inquire about the number of2025 Company inquiry investor shareholders Not applicable February 18 The Written Individual Individual Inquire about the number of2025 Company inquiry investor shareholders Not applicable February 19 The Written Individual Individual Inquire about the number of2025 Company inquiry investor shareholders Not applicable February 21 The Written Individual Inquire about the number of 2025 Company inquiry Individual investor shareholders Not applicable February 27 The Written Individual Individual Inquire about the number of2025 Company inquiry investor shareholders Not applicable 262025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Reception Reception Type of Main contents discussed and Index of basicReception time place mode reception Reception object information provided information of theobject survey March 03 2025 The WrittenCompany inquiry Individual Individual Inquire about the number of investor shareholders Not applicable Online The communicatiMarch 07 2025 Individual Inquiry about the consultingCompany on on the Individual investor company's business Not applicablenetwork platform March 10 2025 The Written Individual Individual Inquire about the number ofCompany inquiry investor shareholders Not applicable March 11 2025 The WrittenCompany inquiry Individual Individual Inquire about the number of investor shareholders Not applicable Online communicati March 14 2025 The on on the Individual Individual Inquiry about the company'sCompany network investor information disclosure Not applicable platform March 21 2025 The WrittenCompany inquiry Individual Individual Inquiry about the consulting investor company's business Not applicable Telephone March 24 2025 The communicati Individual Individual Inquiry about the company'sCompany on investor litigation matters Not applicable March 24 2025 The Written Individual Individual Inquire about the number ofCompany inquiry investor shareholders Not applicable April 01 2025 The WrittenCompany inquiry Individual Individual Inquire about the number of investor shareholders Not applicable Online communicati April 11 2025 TheCompany on on the Individual Individual Inquiry about the progress of non- network investor compete commitment Not applicable platform April 17 2025 The Written Individual Inquire about the number ofCompany inquiry Individual investor shareholders Not applicable April 21 2025 The Written Individual Inquire about the number ofCompany inquiry Individual investor shareholders Not applicable Telephone April 30 2025 The Individual Inquiry about the subsidiary'sCompany communicati Individualon investor business Not applicable May 06 2025 The Written Individual Individual Inquire about the number ofCompany inquiry investor shareholders Not applicable Telephone May 06 2025 The Individual Inquiry about the progress of non-Company communicati Individual investor compete commitment Not applicableon May 8 2025 The Written Individual Individual Inquire about the number ofCompany inquiry investor shareholders Not applicable May 12 2025 The Written Individual Inquire about the number ofCompany inquiry Individual investor shareholders Not applicable The TelephoneMay 13 2025 communicati Individual Individual Inquiry about the subsidiary'sCompany investor business Not applicableon May 16 2025 The Written Individual Individual Inquire about the number ofCompany inquiry investor shareholders Not applicable May 19 2025 The Written Individual Inquire about the matter ofCompany inquiry Individual investor attending the shareholders’meeting Not applicable May 19 2025 The WrittenCompany inquiry Individual Individual Inquire about the number of investor shareholders Not applicable May 21 2025 The Written Individual Individual Inquire about the number of Not applicable 272025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Reception time Reception Reception Type of Index of basic place mode reception Reception object Main contents discussed and object information provided information of the survey Company inquiry investor shareholders May 22 2025 The WrittenCompany inquiry Individual Individual Inquire about the number of investor shareholders Not applicable The TelephoneMay 29 2025 communicati Individual Individual Inquiry about the consultingCompany on investor company's business Not applicable June 03 2025 The Written Individual Individual Inquire about the number ofCompany inquiry investor shareholders Not applicable June 11 2025 The Written Individual Individual Inquire about the number ofCompany inquiry investor shareholders Not applicable Telephone June 11 2025 The communicati Individual Individual Inquiry about the consultingCompany on investor company's business Not applicable The TelephoneJune 12 2025 communicati Individual Individual Inquiry about the consultingCompany on investor company's business Not applicable June 13 2025 The Written Individual Individual Inquire about the number ofCompany inquiry investor shareholders Not applicable June 19 2025 The Written Individual Inquire about the number ofCompany inquiry Individual investor shareholders Not applicable June 23 2025 The Written Individual Individual Inquire about the number ofCompany inquiry investor shareholders Not applicable The Telephone Individual Inquiry about the company'sJune 23 2025 Company communicati Individual investor operating conditions and strategic Not applicableon planning Telephone June 24 2025 The communicati Individual Individual Inquiry about the consultingCompany on investor company's business Not applicable June 25 2025 The Telephone communicati Individual Individual Inquiry about the company's futureCompany on investor development plan Not applicable July 01 2025 The Written Individual Individual Inquire about the number ofCompany inquiry investor shareholders Not applicable Telephone July 01 2025 The communicati Individual Individual Inquiry about the company'sCompany on investor performance Not applicable July 02 2025 The Written Individual Individual Inquire about the number ofCompany inquiry investor shareholders Not applicable July 03 2025 The Telephone Company communicati Individual Individual Inquiry about the consulting on investor company's business Not applicable July 04 2025 The Written Individual Individual Inquire about the number ofCompany inquiry investor shareholders Not applicable July 11 2025 The WrittenCompany inquiry Individual Individual Inquire about the number of investor shareholders Not applicable Telephone July 11 2025 TheCompany communicati Individual Individual Inquire about the number of on investor shareholders Not applicable July 14 2025 The WrittenCompany inquiry Individual Individual Inquire about the number of investor shareholders Not applicable July 15 2025 The Written Individual Inquire about the number ofCompany inquiry Individual investor shareholders Not applicable July 21 2025 The Written Individual Individual Inquire about the number ofCompany inquiry investor shareholders Not applicable July 22 2025 The Written Individual Individual Inquire about the number of Not applicable 282025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Reception time Reception Reception Type of Index of basic place mode reception Reception object Main contents discussed and object information provided information of the survey Company inquiry investor shareholders July 28 2025 The Written Individual Inquired about the number andCompany inquiry Individual investor register information of shareholders Not applicable July 31 2025 The Written Individual Individual Inquire about the number ofCompany inquiry investor shareholders Not applicable August 01 2025 The Written Individual Individual Inquire about the number ofCompany inquiry investor shareholders Not applicable August 04 2025 The WrittenCompany inquiry Individual Individual Inquire about the number of investor shareholders Not applicable August 06 2025 The Written Individual Individual Inquire about the number ofCompany inquiry investor shareholders Not applicable August 09 2025 The WrittenCompany inquiry Individual Individual Inquire about the number of investor shareholders Not applicable August 10 2025 The WrittenCompany inquiry Individual Individual Inquire about the number of investor shareholders Not applicable August 11 2025 The Written Individual Individual Inquire about the number ofCompany inquiry investor shareholders Not applicable August 11 2025 The Written Individual Individual Inquire about the number ofCompany inquiry investor shareholders Not applicable August 12 2025 The Written Individual Individual Inquire about the number ofCompany inquiry investor shareholders Not applicable August 13 2025 The WrittenCompany inquiry Individual Individual Inquire about the number of investor shareholders Not applicable August 19 2025 The Written Individual Individual Inquired about the number andCompany inquiry investor register information of shareholders Not applicable August 19 2025 The Telephone communicati Individual Individual Inquire about the number ofCompany on investor shareholders Not applicable August 20 2025 The Written Individual Individual Inquire about the number ofCompany inquiry investor shareholders Not applicable August 21 2025 The Written Individual Individual Inquired about the number andCompany inquiry investor register information of shareholders Not applicable August 25 2025 The Written Individual Individual Inquire about the number ofCompany inquiry investor shareholders Not applicable August 26 2025 The Written Individual Individual Inquired about the number andCompany inquiry investor register information of shareholders Not applicable August 27 2025 The WrittenCompany inquiry Individual Individual Inquire about the number of investor shareholders Not applicable September 01 The Written Individual Individual Inquire about the number of2025 Company inquiry investor shareholders Not applicable September 05 The Written Individual Individual Inquire about the number of2025 Company inquiry investor shareholders Not applicable September 8 The Written Individual Individual Inquire about the number of2025 Company inquiry investor shareholders Not applicable September 09 The Written Individual Individual Inquire about the number of2025 Company inquiry investor shareholders Not applicable September 11 The Written Individual Inquire about the number of 2025 Company inquiry Individual investor shareholders Not applicable September 22 The Written Individual Individual Inquire about the number of2025 Company inquiry investor shareholders Not applicable September 24 The Written Individual Inquire about the number of 2025 Company inquiry Individual investor shareholders Not applicable September 25 The Written Individual Individual Inquire about the number of Not applicable 292025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Reception time Reception Reception Type of Index of basic place mode reception Reception object Main contents discussed and object information provided information of the survey 2025 Company inquiry investor shareholders September 30 The Telephone 2025 Company communicati Individual Individual Inquiry about the company's on investor performance Not applicable October 09 The Written Individual Individual Inquire about the number of2025 Company inquiry investor shareholders Not applicable October 10 The Written Individual Individual Inquire about the number of2025 Company inquiry investor shareholders Not applicable October 10 The Telephonecommunicati Individual Individual Inquiry about the company's2025 Company investor performance Not applicableon October 13 The Written Individual Inquire about the number of 2025 Company inquiry Individual investor shareholders Not applicable October 13 The Written Individual Inquire about the number of 2025 Company inquiry Individual investor shareholders Not applicable October 17 The Telephonecommunicati Individual Individual Inquired about individual2025 Company on investor shareholding information Not applicable October 21 The Written Individual Individual Inquire about the number of2025 Company inquiry investor shareholders Not applicable October 22 The Written Individual Inquire about the number of 2025 Company inquiry Individual investor shareholders Not applicable October 22 The Telephonecommunicati Individual Individual Inquiry about the progress of non-2025 Company investor compete commitment Not applicableon October 30 The Telephonecommunicati Individual Individual Inquire about the bankruptcy and 2025 Company investor liquidation application against Not applicableon Jianbang Company November 03 The Written Individual Individual Inquire about the number of2025 Company inquiry investor shareholders Not applicable November 11 The Written 2025 Company inquiry Individual Individual Inquire about the number of investor shareholders Not applicable November 12 The Written Individual Individual Inquire about the number of2025 Company inquiry investor shareholders Not applicable November 14 The Written Individual Inquire about the number of 2025 Company inquiry Individual investor shareholders Not applicable November 14 The Telephonecommunicati Individual Individual Inquire about the matter of 2025 Company investor shareholders’ shareholding Not applicableon decrease November 17 The Written 2025 Company inquiry Individual Individual Inquire about the number of investor shareholders Not applicable November 19 The Written Individual Inquire about the number of 2025 Company inquiry Individual investor shareholders Not applicable November 21 The Written 2025 Company inquiry Individual Individual Inquire about the number of investor shareholders Not applicable November 24 The Written 2025 Company inquiry Individual Individual Inquire about the number of investor shareholders Not applicable November 25 The Written 2025 Company inquiry Individual Individual Inquire about the number of investor shareholders Not applicable November 25 The Telephone Inquire about the matter of 2025 Company communicati Individual Individual on investor shareholders’ shareholding Not applicable decrease November 26 The Written Individual Individual Inquire about the number of2025 Company inquiry investor shareholders Not applicable 302025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Reception time Reception Reception Type of Index of basic place mode reception Reception object Main contents discussed and information provided information of theobject survey November 27 The Written Individual Inquire about the number of 2025 Company inquiry Individual investor shareholders Not applicable November 28 The Written 2025 Company inquiry Individual Individual Inquire about the number of investor shareholders Not applicable December 01 The Written Individual Individual Inquire about the number of2025 Company inquiry investor shareholders Not applicable December 02 The Written Individual Inquire about the number of 2025 Company inquiry Individual investor shareholders Not applicable December 04 The Written Individual Individual Inquire about the number of2025 Company inquiry investor shareholders Not applicable December 10 The Written Individual Individual Inquire about the number of2025 Company inquiry investor shareholders Not applicable December 11 The Written Individual Registration for the Annual General 2025 Company inquiry Individual investor Meeting Not applicable December 12 The Telephone Inquire about the matter of 2025 Company communicati Individual Individual investor shareholders’ shareholding Not applicableon decrease December 15 The Written Individual Inquire about the number of 2025 Company inquiry Individual investor shareholders Not applicable December 16 The Telephone Inquire about the matter of 2025 Company communicati Individual Individual investor shareholders’ shareholding Not applicableon decrease December 22 The Written Individual Inquire about the number of 2025 Company inquiry Individual investor shareholders Not applicable December 29 The Written Individual Individual Inquire about the number of2025 Company inquiry investor shareholders Not applicable XIII. Formulation and implementation of market value management system and valuation improvement plan Whether the Company has formulated a market value management system.□ Yes √ No□ Whether the Company has disclosed plans for valuation enhancement.□ Yes √ No□ XIV. Implementation of the action plan of "double improvement of quality return".Whether the company has disclosed the announcement of the action plan of "double improvement of quality return".□ Yes √ No□ 312025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Section IV Corporate Governance Environment and Society I. Basic status of corporate governance During the reporting period the Company constantly improved its governance structure and standardized the Company's operation in strict accordance with the requirements of the Company Law the Securities Law and the Governance Guidelines for Listed Companies and other laws and regulations. During the reporting period the Company's governance institutions at all levels have carried out their responsibilities and authorities clearly and definitely and have performed their own functions. At the same time they have checked and balanced each other in decision-making implementation and supervision effectively and have operated in a coordinated manner.(I) Operation of the general meeting of shareholders The preparation holding of the annual and extraordinary general meetings of shareholders of the Company aswell as disclosure of the resolutions made at the meetings have been carried out in strict accordance with theCompany Law the Rules of the General Meeting of Shareholders of Listed Companies of China SecuritiesRegulatory Commission (CSRC) the Articles of Association and the Rules of Procedure of the General Meeting ofShareholders of the Company. The notification time of the meeting the procedure of authorization the procedure of convening the convener the qualification of the personnel attending the meeting and the voting procedure of the meeting have all been in line with relevant provisions. An on-site interaction for shareholders has been set at the shareholders' meeting to ensure that the shareholders especially the small and medium-sized shareholders can exercise their legitimate rights.(II) Operation of the Board of Directors The preparation and holding of the board meeting of the Company and the disclosure of the resolution made at the meeting have been carried out in strict accordance with the Company Law the Self-regulation Guidelines for Listed Companies of Shenzhen Stock Exchange No. 1-Standardized Operation of Listed Companies on the MainBoard the Articles of Association and the Rules of Procedure of the Board Meeting of the Company.The number and manning of the board of directors have met the requirements of laws and regulations. The directors have worked diligently and responsibly and the board of directors has worked hard in making decisions and setting the direction for the Company and has exercised its power in accordance with the requirements for corporate governance.(III) Operation of the management The management of the Company performed its duties in strict accordance with the Company Law the Guidelines for Self-Regulation of Companies Listed on Shenzhen Stock Exchange No. 1 - Standardized Operation of Companies Listed on the Main Board the Articles of Association and the Working Rules of the General Manager. The management is fully responsible for the production and operation management of the Company diligently and dutifully performs its duties effectively implements the decisions of the Board of Directors and the division of labor among the management is clear and there is no "insider control".Whether there is any significant difference between the actual status of corporate governance and the laws administrative regulations and the provisions issued by the China Securities Regulatory Commission on the governance of listed companies □ Yes √ No□ There are no significant differences between the actual status of corporate governance and the laws administrative regulations and the provisions issued by the China Securities Regulatory Commission on 322025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. the governance of listed companies II. The independence of the Company from the controlling shareholder and actual owner in terms of assets personnel finance organization and business (I) Assets: The Company's assets are independent without any illegal occupation by the controlling shareholder.(II) In respect of personnel the Company was absolutely independent in management of labour personnel and salaries from the controlling shareholders. All the senior executives of the Company took no office title concurrently at the Shareholder Company.(III) In respect of finance the Company has independent financial department paid taxes according to the law and opened independent bank accounts.(IV) Organization: The Company has office premises independent of the controlling shareholder without any situations of mixed operations or shared offices; The Company's board of directors and other internal organizations operated independently.(V) In respect of business the Company has independent and complete business and independent operation ability.III. Horizontal competitions □√Applicable □Not applicable Type of Probl related em relationship Company Natur Problem Work progress name e Cause Solution and follow-uptype with listed plan companies 1. Solution for industry competition For relevant Both the between SZPRD and SPG. For the matters please Company and existing businesses of Shenzhen refer to the Shenzhen PropertyManagement that are in Announcement Properties & competition with SPG SIHCwill initiate on the Resources one or more practically operable solutions Application of Development within the scope allowed by laws and the Company's (Group) Ltd. regulations and complete the Controlling (referred to as implementation of related solutions by 9 Shareholder for SZPRD) are November 2026 to resolve the existing Change of subsidiaries horizontal competition issue: Commitments controlled by (1) Solve the horizontal competition on Avoiding Horiz Shenzhen through asset sales or asset swaps; (2) Horizontal ontal Controlling Shenzhen Investment Solve the horizontal competition through Competitions comp shareholde Investment Other Holdings Co. equity transfers (3) Other measures that (Announcemen etition r Holdings s Ltd and are can effectively address the horizontal t No.: 2024- s Co. Ltd. engaged in competition. 035) and thereal estate development 2. Other commitments to avoid horizontal Announcement on the and competition. As the controlling shareholder commercial of the listed company and during the Resolution of housing sales period when the listed company is listed the Third which belong on the Shenzhen Stock Exchange Extraordinary to the same companies enterprises and economic General industry and organizations controlled or actually Meeting of thus have a controlled by SIHC (excluding enterprises 2024 (Announcemen situation of controlled by the listed company horizontal collectively referred to as "subsidiaries") t No.: 2024-41) competition. will not engage in business directly disclosed by competitive with the listed company in new the Company business fields other than those where on September 332025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. there is existing horizontal competition. 30 and October SIHC commits not to seek unfair benefits 19 2024 through its status as the controlling respectively.shareholder of the listed company thereby harming the rights and interests of the listed company and its shareholders. In case of violation of the above commitments SIHC will bear the corresponding legal responsibilities including but not limited to compensation for all losses caused to the listed company.IV. Directors and Senior Management 1. Basic information Number of Number Numbe Numbe of r of r of Reasonshares shares shares s for Gende Ag Employme Beginning Ending held at shares increase reduce Other held at increaseName r e Position nt status date of date of the d the d in the increase/decrea the end orterm term beginnin current current se (shares) of the decreasg of the period period e in period period(shares) (shares (shares share(shares) ) ) Chen Chairman Ming Male 52 of the Incumbent Decembe 0 0 0 0 0 Board r 16 2025 Qian Septemb Zhong Male 52 Director Incumbent er 12 0 0 0 0 02023 Secretary Wang of the Jiangta Male 59 Discipline April 1 o Inspection Incumbent 2022 0 0 0 0 0 Commissio n Wang Jianfei Male 53 Director Incumbent October 11202100000 Wang Financial Septemb Jianfei Male 53 Director Incumbent er 0 0 0 0 0222021 Li Wenku Male 52 Director Incumbent Novembe n r 30 2023 00000 Meng Fei Male 50 Director Incumbent August 23202400000 Peng Xingtin Male 44 Director Incumbent March 6 0 0 0 0 0 g 2026 He Zuowen Male 63 Independe nt director Incumbent June 30 202000000 Mi Male 50 IndependeXuming nt director Incumbent June 30 202000000 Liu Independe May 17 Haifeng Male 54 nt director Incumbent 2024 0 0 0 0 0 Zhang Deputy Hongw Male 59 General Incumbent July 15 ei Manager 2020 00000 Huang Deputy Weijun Male 53 General Incumbent July 29 2022 0 0 0 0 0Manager Wu Deputy Zhiyong Male 54 General Incumbent July 29 2022 0 0 0 0 0Manager Secretary to the Luo Yi Male 52 Board of Incumbent Decembe Directors r 31 2020 00000 Office Director of 342025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. the Board of Directors Tang Chairman Decemb Xiaopin Male 55 of the Resigned March 302023 er 16 0 0 0 0 0g Board 2025 Tang Decemb Xiaopin Male 55 Director Resigned December 31 2020 er 16 0 0 0 0 0g 2025 Tang Decemb Xiaopin Male 55 Generalmanager Resigned Decembe r 14 2020 er 16 0 0 0 0 0g 2025 Zhang Manhu Male 51 Director Resigned March 30 March 6 a 2023 2026 00000 Total -- -- -- -- -- -- 0 0 0 0 0 -- Whether there have been departures of any directors supervisors or dismissals of senior management personnel during their terms of office in the reporting period □√ Yes □ No 1. The Company held the second extraordinary general meeting of 2025 on December 16 2025 at which Mr. Chen Ming was elected as a director of the Company. Mr. Tang Xiaoping ceased to hold the positions of Chairman director legal representative and General Manager of the Company. On the same day the Company held the 26th meeting of the 8th Board of Directors at which Mr. Chen Ming was elected as the Chairman and legal representative of the Company and would serve as the Chairman of the Strategy Committee and the Compliance Committee of the Board of Directors. For details please refer to the Announcement on Resolutions of the Second Extraordinary General Meeting of 2025 and the Announcement on Resolutions of the 26th Meeting of the 8th Board of Directors both disclosed by the Company on December 17 2025. 2. The Company held the first extraordinary general meeting of 2026 on March 6 2026 at which Mr. Peng Xingting was elected as a director of the Company. Mr. Zhang Manhua ceased to be a director of the Company and no longer holds any other position in the Company. For details please refer to the Announcement on Resolutions of the 27th Meeting of the 8th Board of Directors disclosed by the Company on February 13 2026 and the Announcement on Resolutions of the First Extraordinary General Meeting of 2026 disclosed on March 7 2026.Changes in directors and senior management of the Company □√Applicable □Not applicable Name Position Type Date Reasons Tang Xiaoping Chairman andGeneral Manager Resigned December 16 2025 Job transfer Zhang Manhua Director Resigned March 6 2026 Job transfer 2. Office holding Professional background work experience and main duties in the Company of existing directors and senior management Chen Ming: Formerly served as Deputy General Manager of Shenzhen Jianan (Group) Co. Ltd. and Secretary of the Party Committee and Chairman of China Shenzhen Foreign Trade (Group) Co. Ltd. He currently serves as Chairman and Secretary of the Party Committee of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.Qian Zhong: He once acted as the Director of the Board of Directors Office (Strategy Research Office) Member of the Discipline Inspection Committee and the Head of the Operation Management Department of Shenzhen Properties & Resources Development (Group) Ltd.; currently serving as the Deputy Secretary of the CPC Director and Chairman of the Trade Union Confederation of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. 352025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Wang Jiangtao: He once worked as the Executive Deputy General Manager and Party Branch Secretary of Shenzhen Foreign Economic and Trade Investment Company Director Secretary of the Discipline Inspection Commission and Party Commission and Chairman of the Supervisory Board of Shenzhen General Institute of Architectural Design and Research Co. Ltd.; he currently serves as the Secretary of the Discipline Inspection Commission and a member of the Party Committee of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.Wang Jianfei: He once acted as the Head of the Financial Management Department of Shenzhen Construction Development (Group) Company Deputy General Manager of Hubei Shentou Control Investment Development Co. Ltd.; currently serving as Director Chief Financial Officer and Member of the Party Committee of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.Li Wenkun: Previously a Deputy General Manager of Shenzhen Toukong Property Management Co. Ltd. a Director a Deputy Secretary of the Party Committee and the Secretary of the Discipline Inspection Commission of Shenzhen Shentou Environmental Protection Technology Co. Ltd. and a Director and a Deputy Secretary of the Party Committee of Shenzhen Environmental Protection Technology Group Co. Ltd. (original name was Shenzhen Shentou Environmental Protection Technology Co. Ltd.); currently a Director of Shenzhen Water Planning and Design Institute Co. Ltd. and a Director of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.Meng Fei: He previously worked at Shenzhen Tianhong Shopping Mall Co. Ltd. and Shenzhen Press Group and served as a Senior Manager and Deputy Head of the Financial Department (Settlement Center) of Shenzhen Investment Holdings Co. Ltd. He currently serves as a director and Chief Financial Officer of Shenzhen-Hong Kong Innovation and Technology Cooperation Zone Development Co. Ltd. a director of SIHC Hong Kong Investment Holdings Limited a director of Shenzhen Textile (Holdings) Co.Ltd and a director of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.Peng Xingting: He formerly served as Deputy Director of the Strategic Research Department (Board of Directors' Office) of Shenzhen Investment Holdings Co. Ltd. He currently serves as the Director of the Strategic Management Department of Shenzhen Investment Holdings Co. Ltd. a director of China Shenzhen Foreign Trade (group) Co.Ltd. a supervisor of Guotai Junan Investment Management Co. Ltd. a director of Shenzhen Data Exchange Co. Ltd. and a director of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.He Zuowen: He once worked as Associate Professor of Accounting at Changsha University of Science & Technology (formerly Changsha Electric Power Institute) Partner at Shenzhen Huapeng Accounting Firm Head of the Shenzhen branch of Beijing Zhongtian Huazheng Certified Public Accountants (now Da Hua Certified Public Accountants LLP) Partner at Lixin Accounting Firm; currently serving as Partner Member of the Partner Management Committee and Secretary of the Party Branch of Zhengdan Zhiyuan (Shenzhen) Certified Public Accountants (Special General Partnership) Chairman of Shenzhen Tianye Taxation Firm Co. Ltd. and Independent Director of Shenzhen Ruijie Technology Co. Ltd. and Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Major social positions include: Off-campus Master's Tutor at Shenzhen University Member of the Shenzhen Institute of Certified Public Accountants Industry Committee of the Communist Party of China Expert in Expert Database of Shenzhen State-owned Assets Supervision and Administration Commission Shenzhen Development and Reform Commission Shenzhen Science and Technology Innovation Commission Shenzhen Radio and Television Culture Tourism and Sports Bureau and Shenzhen United Property And Share Rights Exchanged.Mi Xuemin: He once worked as a lecturer and associate professor at Shenzhen University holds a PhD in Management from Xiamen University a postdoctoral 362025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. fellowship in Applied Economics from Xiamen University and was a visiting scholar at the University of Exeter's Department of Accounting in the UK. He is currently a professor and doctoral supervisor at the Department of Accounting in Shenzhen University as well as an independent director at Shenzhen Farben Information Technology Co. Ltd.OFILM Group Co. Ltd. Ruineng Semiconductor Technology Co. Ltd. and Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd..Liu Haifeng: Formerly served as a partner at Guangdong Xintong Law Firm and an independent director of Shenzhen CEREALS HOLDINGS Co. Ltd. He currently serves as a primary partner at Guangdong Hancheng Law Firm and an independent director of CR Trust and Shenzhen Special Economic Zone Real Estate & Properties (Group) Co.Ltd.Zhang Hongwei: He once worked as the General Manager of Shenzhen Urban Construction Investment Development Co. Ltd. and Hefei Ruifa Urban Construction Investment and Development Co. Ltd. and Manager of the Development Department Sales Department Project Department II and Engineering Management Department of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.; currently the Deputy General Manager and a member of the Party Committee of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.Huang Weijun: Once served as a member of the Party Committee Secretary of the Committee for Discipline Inspection and Deputy GM of Shenzhen Guangming Group Co.Ltd. a member of the Party Committee Secretary of the Committee for Discipline Inspection and Deputy GM of Shenzhen OCT Vision Inc. (concurrently as an executive director of Shenzhen OCT International Media Performing Co. Ltd.) and now serving as the Deputy GM member of the CPC of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.Wu Zhiyong: Once served as the Chairman and GM of Shenzhen Petrel Hotel Co. Ltd.Deputy Manager of Property Management Department and Manager of the Asset Operation Center of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.; and now serving as the Deputy GM member of the CPC of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.Luo Yi: He was once the Vice GM Deputy Director of Board Secretariat and Securities Representative in the Shantou branch of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Currently he serves as the Board Secretary and Office Director of the Board in Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.Situation where the controlling shareholder and actual controller concurrently serve as the chairman and general manager of the listed company □ Applicable√ Not applicable□ *.Positions held in shareholders □√Applicable □Not applicable Whether to Name of the Endin receive appointed Name of shareholder Positions held in Beginning date of g date remuneration personnel shareholders term of allowance fromterm the shareholder unit Peng Xingting Shenzhen Investment Director of Strategic Holdings Co. Ltd. Management June 5 2024 YesDepartment Description of the positions Not applicable held in 372025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. shareholders *.Position in other entities □√Applicable □Not applicable Name of Whether to the Name of other entities Positions held in other Beginning date of Ending receive appointed entities term date of remuneration personnel term allowances inother entities Li Shenzhen Water Planning Wenkun & Design Institute Co. Ltd. Director September 4 2023 No Shenzhen Shenzhen-Hong Kong Science and Meng Fei Technology Innovation Director and Finance April 18 2025 Yes Cooperation Zone Director Development Co. Ltd.Hong Kong Investment Meng Fei Holdings Co. Ltd. underShenzhen Investment Director July 18 2024 No Holdings Meng Fei Shenzhen Textile(Holdings) Co. Ltd. Director 23 July 2024 No Peng China Shenzhen Foreign Xingting Trade (Group) Company Director August 16 2021 NoLimited Peng Guotai Junan Securities Xingting Co. Ltd. Supervisor December 30 2021 No Peng Shenzhen Data Exchange Xingting Co. Ltd. Director March 17 2023 No Zhengdan Zhiyuan He (Shenzhen) Certified Partner and Member of Zuowen Public Accountants the Partner Management December 31 2023 Yes(Special General Committee Partnership) He Shenzhen Tianye Taxation Zuowen Firm Co. Ltd. Chairman of the Board September 03 2007 Yes He Shenzhen Ruijie Zuowen Technology Co. Ltd. Independent director October 11 2024 Yes Mi Shenzhen University Professor and DoctoralXuming Supervisor December 01 2009 Yes Mi Shenzhen Farben Xuming Information Technology Independent director January 29 2021 YesCo. Ltd.Mi Xuming OFILM Group Co. Ltd. Independent director October 11 2023 Yes Mi Ween Semiconductors Xuming Co. Ltd. Independent director December 22 2025 Yes Liu Guangdong Hancheng Haifeng Law Firm Primary partner February 01 2007 Yes Liu Haifeng CR Trust Independent director February 28 2025 Yes Explanati on of None serving in 382025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. other entities Punishments imposed in the recent three years by the securities regulator on the incumbent directors and senior management as well as those who left in the Reporting Period: □ Applicable√ Not applicable□ 3. Remuneration of Directors and Senior Management Decision-making procedure determination basis and actual payments of remuneration for directors and senior management: The remuneration of the Company's directors and senior management shall be determined and implemented in accordance with the regulations of the Company's remuneration management system.After the review and approval at the 2022 Annual General Meeting of Shareholders held on 28 April 2023 the allowance for independent directors has been adjusted to RMB10000 (pre-tax) per person per month from RMB7000 (pre-tax) per person per month since May 2023 and independent directors will not receive any remuneration other than it from the Company.Remuneration of directors and senior management during the Reporting Period Unit: RMB10000 Whether get Name Gende Age Position Employme Total pre-tax compensation paid from r nt status received from the Company related partiesof the Company Chen Ming Male 52 Chairman of theBoard Incumbent 0 Yes Qian Zhong Male 52 Director Incumbent 76.52 No Secretary of the Wang Jiangtao Male 59 Discipline Inspection Incumbent 103.2 No Commission Wang Jianfei Male 53 Director and FinanceDirector Incumbent 96 No Zhang Manhua Male 51 Director Resigned 0 Yes Li Wenkun Male 52 Director Incumbent 0 Yes Meng Fei Male 50 Director Incumbent 0 Yes He Zuowen Male 63 Independent director Incumbent 12 No Mi Xuming Male 50 Independent director Incumbent 12 No Liu Haifeng Male 54 Independent director Incumbent 12 No Zhang Hongwei Male 59 Deputy GeneralManager Incumbent 78.31 No Huang Weijun Male 53 Deputy GeneralManager Incumbent 81.16 No Wu Zhiyong Male 54 Deputy GeneralManager Incumbent 81.16 No Secretary to the Luo Yi Male 52 Board of DirectorsOffice Director of the Incumbent 58.05 No Board of Directors Tang Xiaoping Male 55 Chairman and Resigned 87.73 Yes 392025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. General Manager Total -- -- -- -- 698.13 -- Basis for performance assessment of the actual The relevant remuneration management systems of the remuneration for all directors and senior management at Company and its controlling shareholder for directors and the end of the reporting period senior executives.In 2025 the scoring of some performance indicators for non-independent directors and senior management for the Completion of performance assessment for the actual year 2024 has been completed. The final score is pending remuneration for all directors and senior management at confirmation after the controlling shareholder verifies the the end of the reporting period 2024 operating performance assessment results of the Company; the allowances of independent directors are not subject to performance assessment.Deferred payment arrangements are not applicable to the independent directors; in 2025 the 2023 performance- Deferred payment arrangements for the actual based annual salary and part of the 2024 performance- remuneration of all directors and senior management at based annual salary for non-independent directors and the end of the reporting period senior management have been paid but part of the 2025 performance-based annual salary and term-of-office incentive income have not yet been paid.Withholding and clawback of actual remuneration of all directors and senior management at the end of the Not applicable.reporting period Other circumstances □ Applicable√ Not applicable□ V. Performance of Duty by Directors during the Reporting Period 1. Attendance of directors at board meetings and general meetings Attendance of directors at board meetings and general meetings Number of Whether to the board Number of Number of fail to attend meetings to the board the board Number of Number of the meeting Number of Name of be attended meetings meetings the board absences director attended by meetings from the of the Board general during this attended on attended by Board in person for meetings reporting site communication proxy meetings two attended period consecutivetimes Chen Ming 1 1 0 0 0 No 0 Tang Xiaoping 10 2 8 0 0 No 3 Qian Zhong 11 3 8 0 0 No 3 Wang Jianfei 11 3 8 0 0 No 3 Zhang Manhua 11 0 11 0 0 No 0 Li Wenkun 11 3 8 0 0 No 3 Meng Fei 11 0 11 0 0 No 2 He Zuowen 11 3 8 0 0 No 3 Mi Xuming 11 3 8 0 0 No 2 402025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Liu Haifeng 11 2 9 0 0 No 3 Description of the failure to attend the board meetings in person for two consecutive times Not applicable. 2. Objections raised by directors to relevant matters of the Company Whether the directors have raised any objections to relevant matters of the Company □ Yes √ No□ During the reporting period the directors did not raise any objection to the relevant matters of the Company. 3. Other descriptions of directors' performance of duties Whether the relevant suggestions of the directors to the Company have been adopted □√ Yes □ No Director's statement on the adoption or non-adoption of the Company's relevant proposals During the Reporting Period all directors of the Company performed their duties diligently and conscientiously. They thoroughly mastered the Company’s production and operation internal control and standardized operation and put forward relevant opinions on the Company’s major governance and operation decisions based on their professional advantages. These opinions were fully communicated and discussed among the directors before forming consensus which effectively promoted scientific and objective decision-making by the Board of Directors and helpfully safeguarded the legitimate rights and interests of the Company and all shareholders.VI. Performance of Duty by Specialized Committees under the Board in the Reporting Period Number Important Details Name of Membershi of Date of Content of the opinions and Other of committee p meeting meeting meeting suggestions put performanc s held forward e of duties objection s (if any) It is agreed that the schedule important audit The schedule matters key for the 2024 areas of focus annual and proposed financial audit statements procedures forAudit He the 2024 Committee Zuowen January and internal7 control audit financialof the Board Mi Xuming 13 2025 important statements andof Directors Meng Fei audit matters internal control key areas of audit conducted focus and by Pan-China proposed Certified Public audit Accountant(LLP) were agreed upon.procedures was reviewed.Audit He Deliberation It is concluded Committee Zuowen March 18 on the draft of that the draft of the Board Mi Xuming 7 2025 2024 audit report of Directors Meng Fei Auditor's prepared byReport Pan-China 412025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Number Important Details Name of Membershi of Date of Content of the opinions and Other committee p meeting meeting meeting suggestions put performanc of e of duties objections held forward s (if any) Certified Public Accountant (LLP) complies with the various provisions of enterprise accounting standards and truly and completely reflects the company's financial status as of 31 December 2024 as well as the operating results and cash flows for the year 2024.The audit work for the 2024 financial report was completed well. 1. It is concluded that the Company's financial Deliberation statements are on the 2024 prepared in annual accordance financial with the report provisions of statement enterprise and financial accounting information in standards in all the 2024 material annual report respects and the 2024 are true Audit He internal reliable and Committee Zuowen March 20 control self- complete. The of the Board Mi Xuming 7 2025 assessment 2024 audit of Directors Meng Fei report report prepared provisions for by Pan-China credit Certified Public impairment Accountant and asset (LLP) fairly impairment reflects the for the year Company's 2024 and the financial status 2024 Internal operating Audit Work results and Summary cash flows for Report 2024 in allmaterial respects. 2. It is concluded that the Company's 422025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Number Important Other DetailsName of Membershi of Date of Content of the opinions and performanc ofcommittee p meeting meeting meeting suggestions put e of duties objections held forward s (if any) 2024 Internal Control Self- assessment Report comprehensivel y objectively and truly reflects the actual situation of internal control in 2024.The Company has maintained effective internal control over financial reports in all material respects in accordance with the requirements of the standardized system of enterprise internal control and relevant regulations.During the reporting period no significant deficiencies or material weaknesses in internal controls over financial reporting were identified within the company and no significant deficiencies or material weaknesses in internal controls outside of financial reporting were found. 3. It is concluded that the provisions for credit impairment and asset impairment for the year 2024 by the company are conducted in accordance 432025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Number Important Details Name of Membershi of Date of Content of the opinions and Other of committee p meeting meeting meeting suggestions put performanc s held forward e of duties objection s (if any) with and comply with the provisions of the Accounting Standards for Business Enterprises and the relevant company policies. The basis for these provisions is sufficient and aligns with the Company's operational status. This provision for credit and asset impairment is based on the principle of prudence helping to more fairly reflect the Company's financial status and operating results as of 31 December 2024 making the Company's accounting information more reasonable. 4. The internal audit work conducted in 2024 was well recognized and the company is requested to carry out its audit work in 2025 in accordance with the work plan.Deliberation 1. It is on First concluded that Quarter 2025 the First Report the Quarter 2025 Audit He 2024 Annual Report truly Committee Zuowen 7 April 17 Internal accurately andof the Board Mi Xuming 2025 Control completely of Directors Meng Fei System Work reflects the Report and Company's the First financial status Quarter 2025 operating Internal Audit results and 442025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Number Important Details Name of Membershi of Date of Content of the opinions and Other of committee p meeting meeting meeting suggestions put performanc s held forward e of duties objection s (if any) Work Report cash flow for the first quarter of 2025. 2. It is concluded that the company's 2024 Annual Internal Control System Work Report comprehensivel y objectively and truthfully reflects the construction and supervision of the internal control system in 2024. 3. The internal audit work conducted in first quarter of 2025 was well recognized and the company is requested to carry out its audit work continuously in accordance with the work plan. 1. It is concluded that the Semi- annual Report for 2025 truly accurately and completely reflects the Company's financial status Deliberation operating on the Semi- results and Audit He annual Report cash flow for Committee Zuowen August for 2025 and the first half of of the Board Mi Xuming 7 20 2025 the Report on 2025.of Directors Meng Fei Internal Audit 2. The internal for the first audit work half of 2025 conducted in the first half of 2025 was well recognized and the company is requested to carry out its audit work continuously in accordance with the work 452025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Number Important Details Name of Membershi of Date of Content of the opinions and Other committee p meeting meeting meeting suggestions put performanc of objection s held forward e of duties s (if any) plan. 1. It is concluded that the Third Quarter 2025 Report truly accurately and completely reflects the Company's financial status operating Deliberation results and on the Third cash flow for Audit He Quarter 2025 the third quarter Committee Zuowen October Report and of 2025.of the Board Mi Xuming 7 14 2025 the Third of Directors Meng Fei Quarter 2025 2. The internal Internal Audit audit work Work Report conducted in third quarter of 2025 was well recognized and the company is requested to carry out its audit work continuously in accordance with the work plan. 1. It is agreed to the "Evaluation Report on the Performance of Deliberation the Accounting on the Firm for 2024".Evaluation Report on the 2. It is agreed Performance to the "Report of the of the Board's Accounting Audit Firm for 2024 Committee on Audit He the Report of its Supervision Committee Zuowen Novembe the Board's of the Accounting of the Board Mi Xuming 7 r 5 2025 Audit Firm".of Directors Meng Fei Committee onits 3. It is agreed Supervision to appoint Pan- of the China Certified Accounting Public Firm and the Accountants proposed (Special proposed General renewal of the Partnership) as audit firm the audit firm of the Company for its 2025 financial statement and internal control. 462025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Number Important Name of Membershi of Date of Content of the opinions and Other Details of committee p meeting meeting meeting suggestions put performanc objection s held forward e of duties s (if any) It is concluded that the compensation decision- making process for the Company's directors and senior management The annual members Remuneratio compensation complies with of directors regulations.n and Mi Xuming and senior TheAppraisal Wang 5 March 07 management compensationCommittee Jianfei He 2025 standards for of the Board Zuowen disclosed inthe 2024 directors andof Directors annual report senior was reviewed managementmembers align with the established compensation system. The compensation information disclosed in the 2024 annual report is true and accurate.It is concluded that the 2023 Performance Assessment and Application Plan for senior management Deliberation are consistent on the with the actual Remuneratio "Performance situation n and Mi Xuming Assessment providing a Appraisal Wang June 23 Results and relatively Committee Jianfei He 5 2025 Application accurate and of the Board Zuowen Plan for comprehensive of Directors Senior evaluation ofManagement the assessed for the Year individuals and 2023" do not harm the interests of the Company and its shareholders especially the minority shareholders.Remuneratio Deliberation It is concludedMi Xuming n and on the that the revisedWang 5 July 15Appraisal revision of the "Measures forJianfei He 2025 Committee "Measures for OperatingZuowen of the Board Operating PerformancePerformance Assessment 472025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Number Important Details Name of Membershi of Date of Content of the opinions and Other of committee p meeting meeting meeting suggestions put performanc objection s held forward e of duties s (if any) of Directors Assessment and and Remuneration Remuneration Management of Management Senior of Senior Management" Management" comply with the income distribution policies for state-owned enterprises and the relevant requirements of the municipal state-owned assets supervision which will effectively enhance the loyalty and diligence of the management team and further improve the performance evaluation and the incentive and restraint mechanisms for senior management thus enhancing the corporate governance of the Company. 1. It is concluded that the letter of responsibility for annual Deliberation business on the performance formulation of about senior the operating management Remuneratio performance members in n and Mi Xuming responsibility 2025 meets the Appraisal Wang August letters and requirements of Committee Jianfei He 5 21 2025 employment the of the Board Zuowen agreements performance of Directors for senior assessmentmanagement indicators for and the 2025. It is revision of the aligned with the "Enterprise key work points Annuity Plan" for the year and the division of responsibilities among the leadership team members. 482025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Number Important Details Name of Membershi of Date of Content of the opinions and Other of committee p meeting meeting meeting suggestions put performanc objection s held forward e of duties s (if any) The agreement demonstrates good scientific and rational principles and does not harm the interests of the company and its shareholders particularly the interests of minority shareholders. 2. It is agreed to the "Enterprise Annuity Plan".It is concluded that the "2024 Performance Assessment Implementation Plan for SPG Senior Executives" complies with the provisions of the "Measures for Operating Performance Assessment and Deliberation Remuneration on the Management of Remuneratio formulation of SPG Senior n and Mi Xuming Management".Appraisal Wang Septemb the 2024 Performance The Committee Jianfei He 5 er 19 Assessment assessment of the Board Zuowen 2025 Implementatio indicators are of Directors n Plan for scientifically SPG senior sound and executives reasonableand do not harm the interests of the Company and its shareholders especially the minority shareholders.Approval is given to submit the relevant proposals to the Company's Board of Directors for review. 492025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Number Important Details Name of Membershi of Date of Content of the opinions and Other of committee p meeting meeting meeting suggestions put performanc objection s held forward e of duties s (if any) After reviewing the relevant data of the nominee it is concluded that Mr. Chen Ming meets the qualification requirements stipulated by relevant laws administrative regulations departmental rules and normative documents.There is no circumstance where he is prohibited from serving as a director according to the Company Law and other laws and regulations. He Liu Deliberation has not been Nomination Haifeng Novembe on the punished by the Committee Qian 1 r 21 proposed China of the Board Zhong He 2025 change of Securities Zuowen directors Regulatory Commission or other relevant departments nor has he received disciplinary actions from the stock exchange.There is no situation where he is under investigation by judicial authorities for suspected crimes or is under investigation by the China Securities Regulatory Commission for suspected violations of laws and regulations. He has not been listed on the 502025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Number Important Details Name of Membershi of Date of Content of the opinions and Other of committee p meeting meeting meeting suggestions put performanc objection s held forward e of duties s (if any) public information platform for illegal and dishonest conduct in the securities and futures market by the CSRC nor has he been included in the list of dishonest persons subject to enforcement by any people's court. It is agreed to nominate Mr.Chen Ming as a candidate for the Company's director.It is concluded that the "2024 Annual Report on Compliance Construction" truthfully accurately and Tang completely Xiaoping Deliberation reflected the Qian on the Company'sCompliance Zhong "Proposal for progress inCommittee Wang 1 April 15 the 2024 promoting theof the Board Jianfei Liu 2025 Annual construction ofof Directors Haifeng Report on its compliance He Compliance management Zuowen Construction" system in 2024and agreed to submit the relevant proposal to the Company's Board of Directors for deliberation.VII. Performance of Duty by the Audit Committee The Audit Committee finds out whether the company has risks during the monitoring activities during the reporting period □ Yes √ No□ The Audit Committee has no objection to the supervision matters during the reporting period.VIII. Company's employees 512025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. 1. Number professional composition and education level of employees Number of employees of the parent company at the end of the reporting period (person) 90 Number of in-service employees of major subsidiaries at the end of the reporting period 120 Total number of in-service employees at the end of the reporting period (person) 210 Total number of employees receiving salaries in the current period (person) 210 Number of retired employees whose expenses shall be borne by the parent company and major subsidiaries 0 Professional composition Professional composition category Number of employees of each category (person) Production personnel 36 Sales personnel 29 Technical personnel 43 Financial personnel 28 Administrative staff 74 Total 210 Education level Education level category Quantity (person) Doctor 3 Postgraduate 24 Undergraduate 100 Junior college 43 Technical college degree 3 High school diploma or below 37 Total 210 2. Remuneration policy The management personnel above vice general manager (including vice GM) of the Company conducted annual salary system other employees conducted contacting the performance with the benefit salary system. 3. Training plan The Company formulates an annual training plan based on the Employee Training Management Measures. The Company implements training for current employees through methods such as internal training inviting experts for on-site lectures or participating in specialized external training programs. This training covers aspects such as job knowledge professional skills regulations and business processes. The goal is to enrich and update employees' professional knowledge enhance their overall quality and improve their business skills. 4. Outsourcing of labor services □√Applicable □Not applicable Total hours of labor outsourcing (hours) 59501 522025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Total remuneration paid for labor outsourcing (RMB) 2223876.36 IX. Specification of profit distribution and capitalizing of common reserves Formulation implementation or adjustment of the profit distribution policy during the reporting period especially the cash dividend policy □√Applicable □Not applicable During the reporting period the Company revised the profit distribution clauses in the "Articles of Association" in accordance with regulations such as the "Regulatory Guidelines for Listed Companies No. 3—Distribution of Cash Dividends of Listed Companies" the "Guidelines for Articles of Association of Listed Companies" and the "No. 1 Guidelines for the Self-supervision of Listed Companies on the ShenzhenStockExchange - Standard Operations of Companies Listed on the Main Board". The revised "Articles of Association" was reviewed and approved at the first extraordinary general meeting of 2025 held on November 26 2025.Special instructions for cash dividend policy Whether it meets the requirements of the Articles of Association or the resolution of the general meeting of Yes shareholders: Whether the dividend standards and proportions are explicit and clear: Yes Whether relevant decision-making procedures and mechanisms are complete: Yes Whether the Independent Directors have fulfilled their duties and played their due roles: Yes If the Company does not make cash dividends it shall disclose the specific reasons and the next measures to be Not applicable taken to enhance the returns level of investors: Whether minority shareholders have the opportunity to fully express their opinions and demands and whether their Yes legitimate rights and interests are fully protected: Whether the conditions and procedures are compliant and transparent if the cash dividend policy is adjusted or Yes changed: The Company is profitable during the reporting period and the profit available for distribution by the parent company is positive but no cash dividend distribution plan is proposed □ Applicable√ Not applicable□ Profit distribution and conversion of capital reserves into share capital during the reporting period □√Applicable □Not applicable Number of bonus shares per 10 shares (shares) 0 Number of dividends per 10 shares (RMB) (including tax) 0.35 A total number of shares as the distribution basis(shares) 1011660000 Cash dividend amount (yuan including tax 35408100.00 Other means (such as repurchase of shares) cash dividend amount (yuan) 0.00 Total cash dividend (RMB including tax) 35408100.00 Distributable profit (yuan) 1098111214.93 532025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Proportion of cash dividend in the distributable profit 100% Cash dividends this time If the company's development stage is hard to be identified and there are major capital expenditure arrangements when the profit distribution is carried out the proportion of cash dividends in this profit distribution should be at least 20%. Detailed explanation of the plan for profit distribution or conversion of capital reserves into share capital The Company's 2025 profit distribution plan was reviewed and approved at the 28th meeting of the 8th Board of Directors held on March 18 2026 and submitted to the 2025 annual general meeting for deliberation. Based on the total share capital of 1011660000 shares as of December 31 2025 a cash dividend of RMB0.35 (tax inclusive) per 10 shares is to be distributed to the shareholders with no bonus issue from either profit or capital reserves. This profit distribution plan is subject to approval at the general meeting before implementation.X. Implementation of the Company's equity incentive plan employee stock ownership plan (ESOP) or other employee incentives □ Applicable√ Not applicable□ During the reporting period the Company had no equity incentive plan employee stock ownership plan or other employee incentive measures and their implementation.XI. Construction and implementation of internal control system during the reporting period 1. Construction and implementation of internal control The Company has established a relatively complete and continuously effective internal control system and has carried out internal control evaluation in accordance with the internal control matrix and documents. The Company has maintained effective internal controls over financial reporting in all significant aspects according to the requirements of the corporate internal control standards and relevant regulations. No significant deficiencies in non-financial reporting internal controls have been identified and no factors have occurred that would impact the conclusions regarding the effectiveness of internal controls. At the same time the Company attaches great importance to the regulation and steering role of the big supervision system. By holding joint supervision meetings and carrying out key supervision and inspection the Company has promoted the standardization level improvement of relevant management work. No major violations of regulations and disciplines have been found. In the future the Company will continue to develop internal control in a standardized manner and strengthen the supervision and inspection of internal control in order to promote the healthy and sustainable development of the Company. 2. Details of major deficiencies in internal control found during the reporting period □ Yes √ No□ XII. Management and control of the Company's subsidiaries during the reporting period Company Consolidation Consolidation Problemsencountered in Solutions taken Progress of Follow-upname plan progress consolidation solution solution plan Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Abnormalities in the management and control of subsidiaries 542025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. □ Yes √ No□ XIII. Evaluation Report on Internal Control or Audit Report on Internal Control 1. Internal control evaluation report Full-text disclosure date of the Evaluation Report on Internal Control March 20 2026 Full-text disclosure index of the Evaluation Report on Internal Control 2025 Internal Control Self-Evaluation Report on www.cninfo.com.cn Ratio of total assets of units included in the evaluation scope to total assets in the consolidated financial 89.56% statements of the Company Ratio of operating revenue of units included in the evaluation scope to the operating revenue of consolidated 99.95% financial statements of the Company Defect identification criteria Type Financial report Non-financial report The qualitative criterion for the recognition of defects of internal control in the non-financial statements mainly were the order of severity of defect involving business nature the direct or potential negative influence nature the influence scope and other The Company based on the actual factors. Generally the presence of the situation identifies the following following signs indicates that there events or signs that may indicate the may be major or significant presence of significant or material deficiencies in the non-financial report deficiencies in financial reporting: (1) internal control: (1) lack of democratic The directors supervisors and senior decision-making procedures such as management were found to have lack of decision-making on major fraudulent behavior. (2) The discovery issues important appointments or by the certified public accountant of a dismissals significant project Qualitative criteria material misstatement of a current investment decisions use of largeperiod's financial reports and the funds (Three Major and One Big) failure of the internal controls to detect decision-making procedures; (2) the misstatement during their unscientific decision-making operation. (3) The supervision of the procedures such as major decision- Audit Committee under the Board and making errors resulting in significant Internal Audit Service to the internal property losses for the Company; (3) control is invalid. (4) The accounting serious violations of national laws and personnel were without necessary regulations; (4) key management qualities to complete the preparation personnel or important talents leaving of financial statements. in large numbers; (5) frequent negative media reports with a broad impact; (6) failure to rectify the results of internal control evaluation especially major or significant deficiencies; (7) lack of systematic control over important businesses or systemic failure of systems.Serious defects: the defects or defect The quantitative criteria for defects of group may lead to the financial results internal control in the non-financial Quantitative criteria misstatement or potential losses more statements were mainly based on the than 3% of net assets. Important amount of direct economic loss that defects: the defects or defect group may be caused with reference to the may lead to the financial results quantitative criteria for defects of 552025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. misstatement or potential losses that internal control in financial report of is greater than 1% of net assets but no the Company.more than 3% of net assets. General defects: the defects or defect group may lead to the financial results misstatement or potential losses no more than 1% of net assets.Number of major deficiencies in financial reports 0 Number of major deficiencies in non- financial report 0 Number of significant deficiencies in financial report 0 Number of significant deficiencies in non-financial report 0 2. Audit Report on Internal Control □√Applicable □Not applicable Review opinion in the Audit Report on Internal Control In our opinion SPG has maintained effective internal control over financial reporting in all material respects in accordance with the Basic Standard for Enterprise Internal Control and relevant regulations on December 31 2025.Disclosure of the Audit Report on Internal Control Disclosed Full-text disclosure date of the Audit Report on Internal Control March 20 2026 Full-text disclosure index of the Audit Report on Internal Report on Internal Control disclosed on Control www.cninfo.com.cn.Opinion type of the Audit Report on Internal Control Standard and unqualified opinion Whether there are major deficiencies in non-financial reports No Whether the accounting firm issues an Audit Report on Internal Control with non-standard opinions □ Yes √ No□ Whether the Audit Report on Internal Control issued by the accounting firm is consistent with the opinion of the self-evaluation report of the Board of Directors □√ Yes □ No Whether a non-standard internal control audit opinion was issued during the reporting period or the previous year □ Yes √ No□ XIV. Status of rectification of self-examination issues of special actions on governance of listed companies During the reporting period the Company did not have any issues that needed rectification after self- examination.XV. Disclosure of Environmental Information Whether the listed company and its main subsidiaries are included in the list of enterprises required to disclose the environmental information by law □ Yes √ No□ XVI. Social responsibility 562025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Adhering to the philosophy of "thinking of the source when drinking water" while pursuing economic benefits the Company proactively practiced its role as a state-owned enterprise fulfilled its social responsibility and gave back to the society with practical action. For details please refer to the 2025 Environmental Social and Corporate Governance (ESG) Report disclosed on CNINFO (www.cninfo.com.cn).XVII. Consolidation and Expansion of the Achievements of Poverty Alleviation and Rural Revitalization Paying close attention to rural development the Company proactively implemented the national targeted poverty alleviation action and continuously carried out consumer assistance and rural revitalisation tasks. For details please refer to the 2025 Environmental Social and Corporate Governance (ESG) Report disclosed on CNINFO (www.cninfo.com.cn).Section V Significant Events I. Fulfillment of commitments 1. Commitments made by the Company's actual owner shareholders related parties acquirers the Company and other related parties that have been fulfilled within the reporting period and those that have not been fulfilled as of the end of the reporting period □√Applicable □Not applicable Party Reason making Type Content Date Term Performance commitment To avoid The commitment horizontal has been competition changed. For Shenzhen relevant matters Investment please refer to Holdings Co. the Ltd. made such Announcement a commitment: on the For the Application of the Company’s Company's existing Controlling business that Shareholder for Other has horizontal Change of commitments Shenzhen Avoidance competition with Commitments on made to Investment of ShenZhen September Before Avoiding minority Holdings horizontal Properties & 10 2021 November Co. Ltd. competition 9 2024 Horizontal interests Resources Competitions Development (Announcement (Group) Ltd. No.: 2024-035) Shenzhen and the Investment Announcement Holdings Co. on the Ltd. will within Resolution of the the scope Third permitted by Extraordinary laws and General Meeting regulations of 2024 timely launch (Announcement one or several of No.: 2024-41) the following disclosed by the 572025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. solutions that is Company on practically September 30 feasible and and October 19 complete the 2024 implementation respectively.of the relevant solution(s) before 9 November 2024 to solve the existing horizontal competition problem: (1) Solve the horizontal competition between the two through asset sales or asset replacement; (2) Solve the horizontal competition between the two through equity transfer; (3) Take other measures that can effectively solve the problem of horizontal competition.Above commitment came into force upon the review and approval on the shareholders’ meeting of ShenZhen Properties & Resources Development (Group) Ltd.(dated 27 September 2021). 1. Solution for industry competition between SZPRD and SPG. For Other the existing commitments businesses of Before made to Shenzhen September November In performance minority Property 26 2024 9 2026 interests Management that are in competition with SPG SIHC will initiate one or more practically operable 582025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. solutions within the scope allowed by laws and regulations and complete the implementation of related solutions by 9 November 2026 to resolve the existing horizontal competition issue: (1) Solve the horizontal competition through asset sales or asset swaps; (2) Solve the horizontal competition through equity transfers (3) Other measures that can effectively address the horizontal competition. 2. Other commitments to avoid horizontal competition. As the controlling shareholder of the listed company and during the period when the listed company is listed on the As a Shenzhen Stock controlling Exchange shareholder companies of a publicly Other enterprises and listed commitments economic company made to organizations September during its In performance minority controlled or 26 2024 listing interests actually period on controlled by the SIHC (excluding Shenzhen enterprises Stock controlled by the Exchange listed company collectively referred to as "subsidiaries") will not engage in business directly competitive with the listed company in new business fields other than those 592025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. where there is existing horizontal competition.SIHC commits not to seek unfair benefits through its status as the controlling shareholder of the listed company thereby harming the rights and interests of the listed company and its shareholders. In case of violation of the above commitments SIHC will bear the corresponding legal responsibilities including but not limited to compensation for all losses caused to the listed company.Whether the commitment is fulfilled on Yes time If the commitments are not fulfilled within the time limit the specific reasons for the Not applicable unfinished performance and the next work plan shall be specified 2. If there is a profit forecast for the Company's assets or projects and the reporting period is still in the profit forecast period the Company shall explain that the assets or projects have met the original profit forecast and the reasons □ Applicable√ Not applicable□ 3. Performance commitments involving the Company □ Applicable√ Not applicable□ II. Non-operational occupation of funds by the controlling shareholders and other related parties of the listed company 602025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. □ Applicable√ Not applicable□ During the reporting period there were no non-operational funds occupied by the controlling shareholders and other related parties for the listed company.III. Illegal external guarantees □ Applicable√ Not applicable□ The Company had no illegal external guarantee during the reporting period.IV. Explanation of the Board of Directors on the latest "modified report" □ Applicable√ Not applicable□ V. Explanations Given by the Board of Directors and the IndependentDirectors (if any) Regarding the Independent Auditor's “ModifiedOpinion” on the Financial Statements of the Reporting Period □ Applicable√ Not applicable□ VI. Explanation of the accounting policies changes in accounting estimates or corrections of significant accounting errors compared to the financial report of the previous year □ Applicable√ Not applicable□ During the reporting period the Company had no accounting policies changes in accounting estimates or corrections of significant accounting errors.VII. Explanation of changes in the scope of consolidated statements compared to the financial report of the previous year □√Applicable □Not applicable Guangdong Jianbang Group (Huiyang) Industrial Co. Ltd. was taken over by a bankruptcy administrator for bankruptcy and liquidation on November 30 2025 and thus it is no longer included in the scope of consolidation.VIII. Appointment and dismissal of the accounting firm Currently appointed accounting firm Name of domestic accounting firm Pan-China Certified Public Accountants (Special GeneralPartnership) Remuneration of domestic accounting firm (RMB10000) 72 Number of consecutive years of audit services provided by domestic accounting firm 3 Name of certified public accountants of the domestic accounting firm Wang Huansen Lin Zhenhua Number of consecutive years of audit services provided by certified public accountants of domestic accounting firm 3 Whether to change the accounting firm in the current period □ Yes √ No□ Engagement of internal control audit accounting firm financial adviser or sponsor 612025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. □√Applicable □Not applicable During the Reporting Period the Company engaged Pan-China Certified Public Accountant (LLP) to provide internal control and audit services for the Company at a service fee of RMB210000.IX. Delisting after the disclosure of the annual report □ Applicable√ Not applicable□ X. Matters related to bankruptcy and reorganization □ Applicable√ Not applicable□ During the reporting period the Company had no bankruptcy restructuring related matters.XI. Significant litigation and arbitration □√Applicable □Not applicable Basic information Amount Whether Results and Execution of of litigation involved estimated Proceedings of litigation influence of litigation Date of Disclosure (arbitration (RMB1000 liabilities (arbitration) litigation (arbitration) disclosure index ) 0) are formed (arbitration) trial judgment Huizhou Mingxiang As Jianbang Group Economic is incapable of Information The 2025 paying the ConsultingCo. Ltd. Semi-Annualcommercial bills due in January Huizhou Report (Announcem 2022 which total Huiyang ent No.: RMB177151400 Hongfa Huizhou Mingxiang Industry & 2025-023) This and the enforcement Economic Trade Co. Announceme procedure is Information Ltd. and Consulting Co. Huizhou nt on the terminated. Ltd. Huizhou Jinlongsheng Court's Jianbang Industrial Ruling to Company has Huiyang HongfaIndustry & Trade Co. Ltd.Accept the Lawsuit of entered the Co. Ltd. and have applied Bankruptcy and bill dispute 17715.14 No bankruptcy Huizhou for execution October 30and Jinlongsheng to the 2025 Liquidation liquidation Huizhou Application proceedings Industrial Co. Ltd. against a and creditors brought a lawsuit Intermediate on the bill dispute People's Controlling may file Court. In Subsidiary claims with to the People’s February and the Court of Huiyang Appointment administrator. District. The 2026 the Huiyang District Huizhou of an Administrator Court ruled at first Intermediate instance in March People's (Announcem ent No.: 2023 that Jianbang Court issued 2025-030) Group should pay an disclosed on the acceptance bill enforcement amount and order ruling cninfo.com.c interest. to terminate n this enforcement procedure.The In January 2024 On The Litigation Loan enforcement the Company December 2 Matters contract 39568.85 No procedure is received a civil 2025 the May 13 2025 (Announcem Dispute terminated. judgment of the Company ent No.: Jianbang first instance received the 2025-013) 622025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Company has issued by the Enforcement and the entered the Shenzhen Luohu Order ruling Announceme bankruptcy District People's to terminate nt on the and Court. The the Court's liquidation Company won the enforcement Ruling to proceedings case and has procedure. Accept the and filed applied to the Given that Bankruptcy claims with Luohu District Jianbang and the People's Court of Company Liquidation administrator. Shenzhen for has entered Application compulsory the against a execution. bankruptcy Controlling and Subsidiary liquidation and proceedings Appointment the Company of an has filed Administrator claims with (Announcem the ent No.: administrator. 2025-030) disclosed on cninfo.com.c n In the second instance.Evergrande On January 8 Pearl River 2025 our Delta Company received Company has the first instance entered the civil judgment of bankruptcy the case and the and judgment made by liquidation the Huizhou Joint proceedings Intermediate venture and filed People's Court ofthe first instance Announcemeand claims with cooperativ the supported some of nt on e real 74357.5 No administrator. our company's In the second December Litigation estate Guangzhou litigation claims. instance. 82023 Matters (No.: 2023-048) on developme Bopi and On January 22 nt contract Shenzhen 2025 our company www.cninfo.disputes Qijin are filed an appeal com.cn undergoing regarding liquidation unsupported and claims the case deregistration was heard in the and claims second instance have been on May 22 2025 filed with their and it is currently respective in the second liquidation instance.teams.Jianbang In October 2024 Given that The Litigation Company the civil ruling for Jianbang Matters and the second Company (Announcem Evergrande instance of this and ent No.: Pearl River case was received Evergrande 2025-016) Loan Delta and the case was Pearl River and the contract 41952.29 No Company treated as a Delta June 12 Announceme Dispute have both withdrawal of the Company 2025 nt on the entered lawsuit. The first- have both Court's bankruptcy instance judgment entered Ruling to and has taken effect bankruptcy Accept the liquidation and the Company and Bankruptcy proceedings has won the case. liquidation and and claims The Company proceedings Liquidation 632025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. have been applied to the court the Company Application filed with their for compulsory has filed against a respective enforcement in claims with Controlling administrator January 2025. their Subsidiary s. respective and Guangzhou administrator Appointment Bopi and s. of an Shenzhen Meanwhile Administrator Qijin are Guangzhou (Announcem undergoing Bopi and ent No.: liquidation Shenzhen 2025-030) and Qijin are disclosed on deregistration undergoing cninfo.com.c and claims liquidation n have been and filed with their deregistration respective and the liquidation Company teams. has also filed claims with their respective liquidation teams.On December 8 2025 the Company submitted its claim declaration The On October 27 materials to Announceme 2025 Jianbang the nt on the Company received administrator Court's the Civil Ruling of Jianbang Ruling to and the Decision Company Accept the Under from the Huizhou based on the Bankruptcy bankruptcy Intermediate claim amount andPeople's Court. confirmed by Liquidation Application and for Under liquidation The court ruled to the effective Application accept the civil against a bankruptcy review of theclaims and No administrator bankruptcy and judgment the October 30 Controlling and debts has taken liquidation confirmation 2025 Subsidiary liquidation over application filed by letter of and Jianbang Zhongshan claims and Appointment Company. Shengtang debts and of anAdvertising Co. transfer Administrator Ltd. against vouchers. (Announcem Jianbang The ent No.: Company and Company 2025-030) appointed an actively disclosed on administrator. participated cninfo.com.c in creditors' n meetings to exercise its rights as a creditor in accordance with the law.XII. Punishment and rectification □ Applicable√ Not applicable□ There was no punishment or rectification during the reporting period. 642025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. XIII. Integrity status of the Company and its controlling shareholders and actual owner □ Applicable√ Not applicable□ XIV. Major related party transactions 1. Related party transactions related to daily operations □ Applicable√ Not applicable□ During the reporting period the Company had no related party transactions related to daily operations. 2. Related party transactions arising from the acquisition and sale of assets or equity □ Applicable√ Not applicable□ During the reporting period the Company had no related party transactions arising from the acquisition or sale of assets or equity. 3. Related party transactions arising from joint external investment □ Applicable√ Not applicable□ During the reporting period the Company had no related party transactions arising from joint external investment. 4. Related claims and debts □ Applicable√ Not applicable□ During the reporting period the Company had no related debt transactions. 5. Information on transactions with finance companies with related relationship □ Applicable√ Not applicable□ There was no deposit loan credit or other financial business between the Company and the finance companies with related relationship and their related parties. 6. Transactions between the Company's holding finance companies and its related parties □ Applicable√ Not applicable□ There was no deposit loan credit or other financial business between the Company's holding finance companies and its related parties. 7. Other major related party transactions □ Applicable√ Not applicable□ The Company had no other major related party transactions during the reporting period.XV. Major contracts and their performance 1. Custody contracting and lease matters (1) Custody □ Applicable√ Not applicable□ During the reporting period the Company had nothing under custody. (2) Contracting □ Applicable√ Not applicable□ 652025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. During the reporting period the Company had no contracting. (3) Leases □ Applicable√ Not applicable□ During the reporting period the Company had no leases. 2. Significant guarantees □ Applicable√ Not applicable□ The Company had no material guarantees during the reporting period. 3. Entrustment of others for cash asset management (1) Entrusted wealth management □√Applicable □Not applicable Overview of entrusted wealth management during the reporting period Unit: RMB10000 Balance of entrusted wealth Product category Risk characteristics management during the Delinquent uncollected reporting period amount Others Money market funds - lowrisk 105025.61 0 Details of high-risk entrusted wealth management where the Company as a single client entrusts a financial institution for asset management or invests in products with low safety and poor liquidity □ Applicable√ Not applicable□ (2) Entrusted loans □ Applicable√ Not applicable□ There were no entrusted loans of the Company during the reporting period. 4. Other major contracts □ Applicable√ Not applicable□ There were no other major contracts of the Company during the reporting period.XVI. Use of Raised Funds □ Applicable√ Not applicable□ The Company had no use of funds raised during the reporting period.XVII. Notes to Other Major Matters □ Applicable√ Not applicable□ The Company had no other major matters to be explained during the reporting period.XVIII. Major Matters of the Company's Subsidiaries □ Applicable√ Not applicable□ 662025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Section VI. Share Changes and Shareholder Information I. Changes in shares 1. Changes in shares Unit: shares Before the change Increase or decrease in this change (+ -) After the change Conversio New Number Ratio shares Bonus n of issue provident Others Sub-total Number Ratioissued fund into shares I. Shares with restrictive 0 0.00% 0 0 0 0 0 0 0.00% conditions for sales 1. State- owned 0 0.00% 0 0 0 0 0 0 0.00% shares 2. Shares held by the state- owned 0 0.00% 0 0 0 0 0 0 0.00% legal persons 3. Other domestic 0 0.00% 0 0 0 0 0 0 0.00% holdings Including: shares held by domestic 0 0.00% 0 0 0 0 0 0 0.00% legal persons Shares held by domestic 0 0.00% 0 0 0 0 0 0 0.00% natural persons 4. Foreign shareholdi 0 0.00% 0 0 0 0 0 0 0.00% ng Including: shares held by overseas 0 0.00% 0 0 0 0 0 0 0.00% legal persons Shares held by overseas 0 0.00% 0 0 0 0 0 0 0.00% natural persons II. Shares 1011660 100.00% 0 0 0 0 0 1011660 100.00% 672025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. without 000 000 restrictive conditions for sales 1. RMB ordinary 891660000 88.14% 0 0 0 0 0 8916600 shares 00 88.14% 2. Foreign shares listed 1200000 11.86% 0 0 0 0 0 1200000 domestica 00 00 11.86% lly 3. Foreign shares listed 0 0.00% 0 0 0 0 0 0 0.00% overseas 4. Others 0 0.00% 0 0 0 0 0 0 0.00% III. Total number of 1011660000 100.00% 0 0 0 0 0 1011660 000 100.00%shares Reasons for changes in shares □ Applicable√ Not applicable□ Approval of changes in shares □ Applicable√ Not applicable□ Transfer of changes in shares □ Applicable√ Not applicable□ Effect of changes in shares on financial indicators such as basic earnings per share and diluted earnings per share in the latest year and the latest period and net assets per share attributable to the Company's ordinary shareholders □ Applicable√ Not applicable□ Other contents deemed necessary by the Company or required by the securities regulators to be disclosed □ Applicable√ Not applicable□ 2. Changes in restricted shares □ Applicable√ Not applicable□ II. Issuance and listing of securities 1. Issuance of securities (excluding preferred shares) during the reporting period □ Applicable√ Not applicable□ 2. Changes in the total number of shares and shareholder structure of the Company and changes in the structure of assets and liabilities of the Company □ Applicable√ Not applicable□ 3. Existing internal employee shares □ Applicable√ Not applicable□ III. Shareholders and actual owner 682025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. 1. Number of the Company's shareholders and shareholding ratios Unit: shares Total numb er of ordin ary share holde Total rs at number of Total the preferred number of end shareholder Total number of preferred shareholders whose ordinary of the s withrestoration voting right have beenshareholder 38034 previ 38997 of voting 0 restored at the end of thes at the end ous previous month before 0 of the mont rights at the reporting h end of the the disclosure date of the annual report (if any) period. befor reporting e the period (if (see Note 8) disclo any) (see sure Note 8) date of the annu al report Shareholdings of shareholders holding more than 5% or the top 10 shareholders (excluding shares lent through refinancing) Number of Number of Number of Pledge marking orshares held Changes freezing Name of Nature of Sharehol at the end during the shares held shares held shareholder shareholder ding ratio of the reporting under without reporting period restricted restrictions Share status Number period conditions on sales Shenzhen Investment State-owned 55424728 - 55424728 Not Holdings legal person 54.79% 0 10106558 0 0 applicable 0 Co. Ltd.Shenzhen State- owned Domestic non- Equity state-owned 6.35% 64288426 0 0 64288426 Not 0 Operation legal person applicable Manageme nt Co. Ltd.Yang Domestic Jianmin natural person 1.02% 10287700 -3210317 0 10287700 Pledged 3890000 Hong Kong Securities Clearing Overseas Not Company legal person 0.70% 7038483 2837180 0 7038483 applicable 0 Ltd.(HKSCC) Wang Domestic Not Yulan natural person 0.62% 6228591 0 0 6228591 applicable 0 Zhang Domestic Xiujuan natural person 0.46% 4696600 -133100 0 4696600 Not applicable 0 He Qiao Domestic Notnatural person 0.39% 3968100 176200 0 3968100 applicable 0 692025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Wang Domestic Not Jinghua natural person 0.31% 3100000 1750000 0 3100000 applicable 0 Wang Domestic Not Zhengying natural person 0.29% 2961900 0 0 2961900 applicable 0 Zhang Domestic Not Tianxue natural person 0.28% 2830283 701384 0 2830283 applicable 0 Strategic investors or general legal person becoming the top 10 shareholders due to Not applicable placement of new shares (if any) (see Note 3) Among the top 10 shareholders of the Company Shenzhen State-owned Equity Notes to shareholders' related Management Co. Ltd. is a wholly-owned subsidiary of Shenzhen Investment Holdings relationship or persons acting Co. Ltd. The Company does not know whether there exists associated relationship in concert among the other shareholders or whether they are persons acting in concert as prescribed in the Administrative Measures for the Acquisition of Listed Companies.Explanation of the above shareholders' involvement in entrusting/being entrusted Not applicable voting rights and waiver of voting rights Special explanation for the existence of repurchase accounts among the top 10 Not applicable shareholders (if any) (see Note 10) Shareholdings of the top 10 shareholders without restrictions on sales (excluding shares lent through refinancing and shares locked by senior management) Type of shares Name of shareholder Number of shares held without restrictions onsales at the end of the reporting period Type of shares Number Shenzhen Investment Holdings Co. Ltd. 554247280 RMB ordinary shares 554247280 Shenzhen State-owned Equity Operation Management Co. 64288426 RMB ordinaryshares 64288426Ltd.Yang Jianmin 10287700 RMB ordinaryshares 10287700 Hong Kong Securities Clearing Company Ltd. (HKSCC) 7038483 RMB ordinary shares 7038483 Wang Yulan 6228591 RMB ordinaryshares 6228591 Zhang Xiujuan 4696600 RMB ordinaryshares 4696600 He Qiao 3968100 RMB ordinaryshares 3805700 Domestically He Qiao 3968100 listed foreign 162400 shares Domestically Wang Jinghua 3100000 listed foreign 3100000 shares Wang Zhengying 2961900 RMB ordinaryshares 2961900 Zhang Tianxue 2830283 Domestically 2830283 702025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. listed foreign shares Explanation of related relationship or concerted actions among the top 10 shareholders with Among the top 10 unrestricted public shareholders of the Company Shenzhen State-owned unrestricted tradable Equity Management Co. Ltd. is a wholly-owned subsidiary of Shenzhen Investment shares and between the Holdings Co. Ltd. The Company does not know whether there exists associated relationship top 10 shareholders with among the other shareholders or whether they are persons acting in concert as prescribed unrestricted tradable in the Administrative Measures for the Acquisition of Listed Companies.shares and the top 10 shareholders Explanation of the top 10 ordinary shareholders' Among the top 10 shareholders the shareholder ranked 3rd holds 6180200 shares in a participation in margin credit securities account the 6th ranked shareholder holds 4600000 shares in a credit financing and securities securities account the 7th ranked shareholder holds 3112986 shares in a credit securities lending business (if any) account and the 9th ranked shareholder holds 2961900 shares in a credit securities (see Note 4) account.Participation of shareholders holding more than 5% of the shares the top 10 shareholders and the top 10 shareholders of unrestricted tradable shares in refinancing business and lending shares □ Applicable√ Not applicable□ Changes of the top 10 shareholders and the top 10 shareholders of unrestricted tradable shares compared with the previous period due to refinancing lending/repayment □ Applicable√ Not applicable□ Whether the Company's top 10 ordinary shareholders and the top 10 ordinary shareholders without restrictive condition for sales conduct any agreed repurchase transactions during the reporting period □ Yes √ No□ The Company's top 10 ordinary shareholders and top 10 ordinary shareholders without restrictive condition for sales did not conduct any agreed repurchase transaction during the reporting period. 2. Controlling shareholders of the Company Nature of controlling shareholders: local state-owned holding Type of controlling shareholders: legal person Name of controlling Legal shareholder representative/person Date of establishment Organization code Main businessin charge Investment in equities on behalf of the government and management of those investments; Shenzhen Investment He Jianfeng October 13 2004 914403007675664218 development andHoldings Co. Ltd. operation of government-allocated land; and investment in and provision of services for strategic emerging industries Equities of other SZPRD A (000011) holds 303.14 million shares with a shareholding ratio of 50.87%; domestic and STHC (000045) holds 234.07 million shares with a shareholding ratio of 46.21%; overseas listed companies controlled Ping An Insurance (601318) holds 962.72 million shares with a shareholding ratio of 5.32%; and invested by the Guosen Securities (002736) holds 3223.11 million shares with a shareholding ratio of 31.47%; controlling Guotai Haitong Securities (601211) holds 609.43 million A-shares and 103.37 million H-shares shareholder during the with a shareholding ratio of 4.04%; reporting period Telling Telecommunication Holding (000829) holds 195.03 million shares with a shareholding 712025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. ratio of 19.03%; Shenzhen International (00152) holds 1059.08 million shares with a shareholding ratio of 43.95%; Leaguer (002243) holds 606.66 million shares with a shareholding ratio of 50.11%; Infinova (002528) holds 315.83 million shares with a shareholding ratio of 26.35%; Eternal Asia (002183) holds 601.67 million shares with a shareholding ratio of 23.17%; Shenzhen Water Planning and Design Institute (301038) holds 83.66 million shares with a shareholding ratio of 37.50%; Shenzhen Energy (000027) holds 6.77 million shares with a shareholding ratio of 0.14%; Bank of Communications (601328) holds 9.52 million shares with a shareholding ratio of 0.01%; CECEP Tech and Ecology & Environment (300197) holds 113.98 million share with a shareholding ratio of 3.66%; China Vanke (02202) holds 77.27 million shares with a shareholding ratio of 0.66%; Shenzhen SEG (000058) holds 696.16mn shares with a shareholding ratio of 56.54%; Shenzhen SDG Information (000070) holds 325.72 million shares with a shareholding ratio of 36.18%; Shenzhen Tellus Holding (000025) holds 211.59 million shares with a shareholding ratio of 49.09%; Shenzhen SDG Service (300917) holds 80.74mn shares with a shareholding ratio of 47.78%; Microgate Technology (300319) holds 72 million shares with a shareholding ratio of 8.11%; China Merchants Shekou Industrial Zone Holdings (001979) holds 456.12 million shares with a shareholding ratio of 5.03%.Changes in controlling shareholders during the reporting period □ Applicable√ Not applicable□ There was no change in the controlling shareholder of the Company during the reporting period. 3. The Company's actual owner and its persons acting in concert Nature of actual owner: local state-owned assets management agency Type of actual owner: legal person Legal Name of actual owner representative/person Date of establishment Organization code Main business in charge Perform the duties of State-owned Assets the contributor on Supervision and behalf of the state Administration and supervise and Commission of Yang Jun April 02 2004 11440300K317280672 manage state-owned Shenzhen Municipal assets authorized for People's Government supervision inaccordance with the law.Equity of other domestic and overseas listed In addition to the Company controlling shareholder - Shenzhen Investment Holding Co. Ltd.companies controlled other domestic and overseas listed companies whose equity directly held by the actual by the actual owner controllers did not rank among the top ten shareholders of the Company.during the reporting period Changes in actual owner during the reporting period □ Applicable√ Not applicable□ There was no change in the actual owner of the Company during the reporting period.Chart for the property and controlling relationships between the Company and the actual owner 722025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. The actual owner controls the Company by way of trust or other asset management methods □ Applicable√ Not applicable□ 4. The cumulative number of shares pledged by the controlling shareholder or the largest shareholder of the Company and their persons acting in concert accounted for 80% of the number of shares held by them □ Applicable√ Not applicable□ 5. Other institutional shareholders holding more than 10% of the shares □ Applicable√ Not applicable□ 6. Restricted share reduction of controlling shareholder actual owner reorganization parties and other committed entities □ Applicable√ Not applicable□ IV. Specific implementation of share repurchase during the reporting period Implementation progress of share repurchase □ Applicable√ Not applicable□ Implementation progress of reducing repurchase shares by means of centralized bidding transaction □ Applicable√ Not applicable□ V. Preferred Shares □ Applicable√ Not applicable□ During the reporting period the Company had no preferred shares. 732025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Section VII Bonds □ Applicable√ Not applicable□ 742025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Section VIII Financial Statements I. Audit report Type of audit opinion Standard and unqualified opinion Signing date of the audit report March 18 2026 Name of audit institution Pan-China Certified Public Accountants (Special GeneralPartnership) Audit report No. PCCPAAR [2026] No. 7-34 Name of certified public accountant Wang Huansen Lin Zhenhua Main Body of the Audit Report Auditor’s Report PCCPAAR [2026] No. 7-34 To the Shareholders of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.: I. Audit Opinion We have audited the financial statements of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. (the “Company”) which comprise the consolidated and parent company balance sheets as at December 31 2025 the consolidated and parent company income statements consolidated and parent company cash flow statements and consolidated and parent company statements of changes in equity for the year then ended as well as notes to financial statements.In our opinion the accompanying financial statements present fairly in all material respects the financial position of the Company as at December 31 2025 and its financial performance and its cash flows for the year then ended in accordance with China Accounting Standards for Business Enterprises.II. Basis forAudit Opinion We conducted our audit in accordance with China Standards on Auditing. Our responsibilities under those standards are further described in the Certified Public Accountant’s Responsibilities for the Audit of the Financial Statements section of ourreport. We are independent of the Company in accordance with the “Chinese Certified 752025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Public Accountant Independence Standard No. 1 – Independence Requirements forFinancial Statement Audit and Review Engagements” and the China Code of Ethics 762025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. for Certified Public Accountants and we have fulfilled other ethical responsibilities.In conducting our audit we have complied with the independence requirements applicable to audits of public interest entities. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.III. Key Audit Matters Key audit matters are those matters that in our professional judgment were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole and in forming our opinion thereon and we do not express a separate opinion on these matters.(I) Revenue recognition 1. Key audit matters Please refer to section III (XXV) and V (II) 1 of notes to the financial statements for details.The Company is mainly engaged in real estate sales engineering construction and property leasing and other businesses. In 2025 the operating revenue amounted to 1482872299.36 yuan of which 1324656290.59 yuan was from the real estate sales accounting for 89.33% and 81299490.77 yuan was from engineering construction accounting for 5.48%.As operating revenue is one of the key performance indicators of the Company there might be inherent risks that the Company’s management (the “Management”) adopts inappropriate revenue recognition to achieve specific goals or expectations and revenue recognition involves significant judgment of the Management we have identified revenue recognition as a key audit matter. 2. Responsive audit procedures Our main audit procedures for revenue recognition are as follows: (1) We obtained understandings of key internal controls related to revenue recognition assessed the design of these controls determined whether they had been executed and tested the effectiveness of the operation; (2) We checked main housing sales contracts and lease contracts and assessed whether the revenue recognition method was appropriate; 772025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. (3) We performed analysis procedure on operating revenue and gross margin by month business type etc. so as to identify whether there are significant or abnormal fluctuations and find out the reason; (4) We checked supporting documents related to selected items including housing sales contracts housing delivery notices lease contracts sales invoices etc. (5) We selected items to check the documents including cost budget purchase contracts subcontract agreements etc. which were taken as the basis for estimating total cost so as to test whether the performance progress and the revenue recognized based on performance progress were accurately measured by the Management and evaluated the reasonableness of the performance progress determined by the Management in combination with documents including supervision reports progress confirmation sheets customer statements as well as the on-site observation on inventory counting; (6) We performed confirmation procedures on sales amount of selected items in combination with confirmation procedure of accounts receivable and contract assets; (7) We performed cut-off tests to check whether the revenue was recognized in the appropriate period; and (8) We checked whether information related to operating revenue had been presented appropriately in the financial statements.(II) Net realizable value of inventories 1. Key audit matters Please refer to section III (XIII) and V (I) 7 of notes to the financial statements for details.As of December 31 2025 the book balance of inventories amounted to 1153978849.41 yuan with provision for inventory write-down of 54619230.16 yuan and the carrying amount amounted to 1099359619.25 yuan.Inventories are measured at the lower of cost and net realizable value. The net realizable value is determined by the Management based on the amount of the estimated selling price less the cost to be incurred upon completion estimated selling expenses and relevant taxes and surcharges. As the amount of inventories is significant and determination of net realizable value involves significant judgment of 782025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. the Management we have identified net realizable value of inventories as a key audit matter. 2. Responsive audit procedures Our main audit procedures for net realizable value of inventories are as follows: (1) We obtained understandings of key internal controls related to net realizable value of inventories assessed the design of these controls determined whether they had been executed and tested the effectiveness of the operation; (2) We reviewed the outcome of the Management’s previous estimates on the net realizable value or their subsequent re-estimations; (3) We selected items to assess the reasonableness of the estimated selling price and reviewed whether the estimated selling price was consistent with sales contract price market selling price etc.; (4) We assessed the reasonableness of estimation on cost to be incurred upon completion selling expenses and relevant taxes and surcharges made by the Management; (5) We tested whether the calculation of net realizable value of inventories made by the Management was accurate; (6) We identified whether there existed situations such as projects with slow development or sales progress in combination with observation on inventory counting and assessed the reasonableness of estimations on net realizable value of inventories made by the Management; and (7) We checked whether information related to net realizable value of inventories had been presented appropriately in the financial statements.IV. Other Information The Management is responsible for the other information. The other information comprises the information included in the Company’s annual report but does not include the financial statements and our auditor’s report thereon.Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.In connection with our audit of the financial statements our responsibility is to read 792025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. the other information and in doing so consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.If based on the work we have performed we conclude that there is a material misstatement of the other information we are required to report that fact. We have nothing to report in this regard.V. Responsibilities of the Management and Those Charged with Governance for the Financial Statements The Management is responsible for preparing and presenting fairly the financial statements in accordance with China Accounting Standards for Business Enterprises as well as designing implementing and maintaining internal control relevant to the preparation of financial statements that are free from material misstatement whether due to fraud or error.In preparing the financial statements the Management is responsible for assessing the Company’s ability to continue as a going concern disclosing as applicable matters related to going concern and using the going concern basis of accounting unless the Management either intends to liquidate the Company or to cease operations or has no realistic alternative but to do so.Those charged with governance are responsible for overseeing the Company’s financial reporting process.VI. Certified Public Accountant’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement whether due to fraud or error and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with China Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if individually or in the aggregate they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 802025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. We exercise professional judgment and maintain professional skepticism throughout the audit performed in accordance with China Standards on Auditing. We also: (I) Identify and assess the risks of material misstatement of the financial statements whether due to fraud or error design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion forgery intentional omissions misrepresentations or the override of internal control.(II) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances.(III) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Management.(IV) Conclude on the appropriateness of the Management’s use of the going concern basis of accounting and based on the audit evidence obtained whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or if such disclosures are inadequate to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However future events or conditions may cause the Company to cease to continue as a going concern.(V) Evaluate the overall presentation structure and content of the financial statements and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.(VI) Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the financial statements. We are responsible for the direction supervision and performance of the group audit. We remain sole responsibility for our audit opinion. 812025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. We communicate with those charged with governance regarding the planned audit scope time schedule and significant audit findings including any deficiencies in internal control of concern that we identify during our audit.We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence and where applicable related safeguards.From the matters communicated with those charged with governance we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when in extremely rare circumstances we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.Pan-ChinaCertifiedPublicAccountantsLLP ChineseCertifiedPublicAccountant:WangHuansen (EngagementPartner) Hangzhou·China ChineseCertifiedPublicAccountant:LinZhenhua DateofReport:March182026 The auditor’s report and the accompanying financial statements are English translations of the Chinese auditor’s report and statutory financial statements prepared under accounting principles and practices generally accepted in the People’s Republic of China. These financial statements are not intended to present the financial position and financial performance and cash flows in accordance with accounting principles and practices generally accepted in other countries and jurisdictions. In case the English version does not conform to the Chinese version the Chinese version prevails. 822025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.Consolidated balance sheet as at December 31 2025 (Expressed in Renminbi Yuan) Assets NoteNo. Closing balance Beginning balance Current assets: Cash and bank balances 1 284686525.04 529242725.36 Settlement funds Loans to other banks Held-for-trading financial assets 2 1050256058.41 987801938.51 Derivative financial assets Notes receivable 3 100000.00 Accounts receivable 4 44898083.74 56672795.52 Receivables financing Advances paid 5 31588.45 1201106.21 Premiums receivable Reinsurance accounts receivable Reinsurance reserve receivable Other receivables 6 747900491.52 7438040.83 Financial assets under reverse repo Inventories 7 1099359619.25 3636840229.34 Contract assets 8 29035256.28 30888723.09 Assets held for sale Non-current assets due within one year Other current assets 9 66133465.24 154192023.86 Total current assets 3322301087.93 5404377582.72 Non-current assets: Loans and advances Debt investments Other debt investments Long-term receivables Long-term equity investments 10 Other equity instrument investments 11 14571511.81 14697341.18 Other non-current financial assets Investment property 12 522634659.17 515925116.54 Fixed assets 13 14949900.45 17489207.57 Construction in progress 14 571822.67 Productive biological assets Oil & gas assets Right-of-use assets Intangible assets 15 Development expenditures Goodwill Long-term prepayments 16 1615683.92 1719911.72 Deferred tax assets 17 6138319.62 33571496.94 Other non-current assets Total non-current assets 560481897.64 583403073.95 Total assets 3882782985.57 5987780656.67 Legal representative:Chen Ming Officer in charge of accounting:Wang Jianfei Head of accounting department: Zhou Hongpu 832025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.Consolidated balance sheet as at December 31 2025 (continued) (Expressed in Renminbi Yuan) Liabilities & Equity NoteNo. Closing balance Beginning balance Current liabilities: Short-term borrowings 19 50000.00 1563000.00 Central bank loans Loans from other banks Held-for-trading financial liabilities Derivative financial liabilities Notes payable Accounts payable 20 171738333.04 464488982.30 Advances received 21 722042.14 1398988.78 Contract liabilities 22 28400659.20 1298146232.35 Financial liabilities under repo Absorbing deposit and interbank deposit Deposits for agency security transaction Deposits for agency security underwriting Employee benefits payable 23 32757342.88 22499368.29 Taxes and rates payable 24 26922082.58 27554810.01 Other payables 25 144280409.16 561016653.17 Handling fees and commissions payable Reinsurance accounts payable Liabilities held for sale Non-current liabilities due within one year 26 33888347.83 Other current liabilities 27 7565002.87 118304068.47 Total current liabilities 412435871.87 2528860451.20 Non-current liabilities: Insurance policy reserve Long-term borrowings 28 62273677.82 Bonds payable Including: Preferred shares Perpetual bonds Lease liabilities 29 Long-term payables Long-term employee benefits payable Provisions Deferred income Deferred tax liabilities 17 867914.50 1259459.98 Other non-current liabilities Total non-current liabilities 867914.50 63533137.80 Total liabilities 413303786.37 2592393589.00 Equity: Share capital 29 1011660000.00 1011660000.00 Other equity instruments Including: Preferred shares Perpetual bonds Capital reserve 30 978244910.11 978244910.11 Less: Treasury shares Other comprehensive income 31 23315115.52 23060416.31 Special reserve Surplus reserve 32 275253729.26 275253729.26 General risk reserve Undistributed profit 33 1323849441.49 1223893437.74 Total equity attributable to the parent company 3612323196.38 3512112493.42 Non-controlling interest -142843997.18 -116725425.75 Total equity 3469479199.20 3395387067.67 Total liabilities & equity 3882782985.57 5987780656.67 Legal representative:Chen Ming Officer in charge of accounting:Wang Jianfei Head of accounting department: Zhou Hongpu 842025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.Parent company balance sheet as at December 31 2025 (Expressed in Renminbi Yuan) Assets NoteNo. Closing balance Beginning balance Current assets: Cash and bank balances 69884281.83 83656432.61 Held-for-trading financial assets 987801938.51 Derivative financial assets Notes receivable Accounts receivable 1 4843552.76 7200138.91 Receivables financing Advances paid Other receivables 2 1880427908.13 1751551390.53 Inventories 312474.69 315900.69 Contract assets Assets held for sale Non-current assets due within one year Other current assets 1294922.05 1037878.95 Total current assets 1956763139.46 2831563680.20 Non-current assets: Debt investments Other debt investments Long-term receivables Long-term equity investments 3 1132181561.85 1160766664.14 Other equity instrument investments 14571511.81 14697341.18 Other non-current financial assets Investment property 387434080.02 409742121.37 Fixed assets 9186628.06 10736433.64 Construction in progress 571822.67 Productive biological assets Oil & gas assets Right-of-use assets Intangible assets Development expenditures Goodwill Long-term prepayments 1209606.83 770175.82 Deferred tax assets 469690.21 Other non-current assets Total non-current assets 1545155211.24 1597182426.36 Total assets 3501918350.70 4428746106.56 Legal representative:Chen Ming Officer in charge of accounting:Wang Jianfei Head of accounting department: Zhou Hongpu 852025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.Parent company balance sheet as at December 31 2025 (continued) (Expressed in Renminbi Yuan) Liabilities & Equity NoteNo. Closing balance Beginning balance Current liabilities: Short-term borrowings Held-for-trading financial liabilities Derivative financial liabilities Notes payable Accounts payable 6692455.48 13684223.19 Advances received Contract liabilities 94227.61 95842.85 Employee benefits payable 21771697.06 15935363.87 Taxes and rates payable 1161124.78 12314051.54 Other payables 142790324.11 854613311.67 Liabilities held for sale Non-current liabilities due within one year 374768.60 Other current liabilities 4711.39 4792.15 Total current liabilities 172514540.43 897022353.87 Non-current liabilities: Long-term borrowings 62273677.82 Bonds payable Including: Preferred shares Perpetual bonds Lease liabilities Long-term payables Long-term employee benefits payable Provisions Deferred income Deferred tax liabilities 867914.50 1259459.98 Other non-current liabilities Total non-current liabilities 867914.50 63533137.80 Total liabilities 173382454.93 960555491.67 Equity: Share capital 1011660000.00 1011660000.00 Other equity instruments Including: Preferred shares Perpetual bonds Capital reserve 964711931.13 964711931.13 Less: Treasury shares Other comprehensive income 1928633.86 2023005.89 Special reserve Surplus reserve 252124115.85 252124115.85 Undistributed profit 1098111214.93 1237671562.02 Total equity 3328535895.77 3468190614.89 Total liabilities & equity 3501918350.70 4428746106.56 Legal representative:Chen Ming Officer in charge of accounting:Wang Jianfei Head of accounting department: Zhou Hongpu 862025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.Consolidated income statement for the year ended December 31 2025 (Expressed in Renminbi Yuan) Items NoteNo. Current period cumulative Preceding period comparative I. Total operating revenue 1482872299.36 407022191.44 Including: Operating revenue 1 1482872299.36 407022191.44 Interest income Premiums earned Revenue from handling fees and commissions II. Total operating cost 1183752194.32 426847390.83 Including: Operating cost 1 1069812444.74 332325650.30 Interest expenses Handling fees and commissions Surrender value Net payment of insurance claims Net provision of insurance policy reserve Premium bonus expenditures Reinsurance expenses Taxes and surcharges 2 21879412.16 16741282.71 Selling expenses 3 20775223.41 13164672.93 Administrative expenses 4 72505249.03 70118532.01 R&D expenses Financial expenses 5 -1220135.02 -5502747.12 Including: Interest expenses 3760510.21 2586822.94 Interest income 3829111.01 7998718.28 Add: Other income 6 31652.46 842206.39 Investment income (or less: losses) 7 -150943612.67 1346463.59 Including: Investment income from associates and joint ventures Gains from derecognition of financial assets at amortized cost Gains on foreign exchange (or less: losses) Gains on net exposure to hedging risk (or less: losses) Gains on changes in fair value (or less: losses) 8 16621332.22 18461736.59 Credit impairment loss 9 -2086760.74 -8953080.52 Assets impairment loss 10 -2407322.73 -375188159.83 Gains on asset disposal (or less: losses) 11 -5767.73 195840.20 III. Operating profit (or less: losses) 160329625.85 -383120192.97 Add: Non-operating revenue 12 943633.72 2414677.03 Less: Non-operating expenditures 13 37332.37 267987.97 IV. Profit before tax (or less: total loss) 161235927.20 -380973503.91 Less: Income tax expenses 14 61682858.60 -3377545.61 V. Net profit (or less: net loss) 99553068.60 -377595958.30 (I) Categorized by the continuity of operations 1. Net profit from continuing operations (or less: net loss) 99553068.60 -377595958.30 2. Net profit from discontinued operations (or less: net loss) (II) Categorized by the portion of equity ownership 1. Net profit attributable to owners of parent company (or less: net loss) 99956003.75 -176710947.65 2. Net profit attributable to non-controlling shareholders (or less: net loss) -402935.15 -200885010.65 VI. Other comprehensive income after tax 1442384.71 -3159868.45 Items attributable to the owners of the parent company 254699.21 -2259043.13 (I) Not to be reclassified subsequently to profit or loss -94372.03 279697.38 1. Remeasurements of the net defined benefit plan 2. Items under equity method that will not be reclassified to profit or loss 3. Changes in fair value of other equity instrument investments -94372.03 279697.38 4. Changes in fair value of own credit risk 5. Others (II) To be reclassified subsequently to profit or loss 349071.24 -2538740.51 1. Items under equity method that may be reclassified to profit or loss 2. Changes in fair value of other debt investments 3. Profit or loss from reclassification of financial assets into other comprehensive income 4. Provision for credit impairment of other debt investments 5. Cash flow hedging reserve 6. Translation reserve 349071.24 -2538740.51 7. Others Items attributable to non-controlling shareholders 1187685.50 -900825.32 VII. Total comprehensive income 100995453.31 -380755826.75 Items attributable to the owners of the parent company 100210702.96 -178969990.78 Items attributable to non-controlling shareholders 784750.35 -201785835.97 VIII. Earnings per share (EPS): (I) Basic EPS (yuan per share) 0.0988 -0.17 (II) Diluted EPS (yuan per share) 0.0988 -0.17 Legal representative:Chen Ming Officer in charge of accounting:Wang Jianfei Head of accounting department: Zhou Hongpu 872025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.Parent company income statement for the year ended December 31 2025 (Expressed in Renminbi Yuan) Items NoteNo. Current period cumulative Preceding period comparative I. Operating revenue 1 55418737.49 66748188.58 Less: Operating cost 1 32383899.84 35527944.94 Taxes and surcharges 11787996.18 10897850.09 Selling expenses 3537883.41 2662206.55 Administrative expenses 40675125.54 46350929.47 R&D expenses Financial expenses 3293463.09 -38414.46 Including: Interest expenses 3386158.31 2026547.84 Interest income 940122.04 1621311.93 Add: Other income 28158.18 810791.58 Investment income (or less: losses) 2 915013.90 1346463.59 Including: Investment income from associates and joint ventures Gains from derecognition of financial assets at amortized cost Gains on net exposure to hedging risk (or less: losses) Gains on changes in fair value (or less: losses) 16365273.81 18461736.59 Credit impairment loss -102913935.37 -208718.92 Assets impairment loss -28585102.29 -162599084.25 Gains on asset disposal (or less: losses) -5767.73 224495.95 II. Operating profit (or less: losses) -150455990.07 -170616643.47 Add: Non-operating revenue 97134.22 4.56 Less: Non-operating expenditures 1646.83 31796.55 III. Profit before tax (or less: total loss) -150360502.68 -170648435.46 Less: Income tax expenses -10800155.59 -6709691.79 IV. Net profit (or less: net loss) -139560347.09 -163938743.67 (I) Net profit from continuing operations (or less: net loss) -139560347.09 -163938743.67 (II) Net profit from discontinued operations (or less: net loss) V. Other comprehensive income after tax -94372.03 279697.38 (I) Not to be reclassified subsequently to profit or loss -94372.03 279697.38 1. Remeasurements of the net defined benefit plan 2. Items under equity method that will not be reclassified to profit or loss 3. Changes in fair value of other equity instrument investments -94372.03 279697.38 4. Changes in fair value of own credit risk 5. Others (II) To be reclassified subsequently to profit or loss 1. Items under equity method that may be reclassified to profit or loss 2. Changes in fair value of other debt investments 3. Profit or loss from reclassification of financial assets into other comprehensive income 4. Provision for credit impairment of other debt investments 5. Cash flow hedging reserve 6. Translation reserve 7. Others VI. Total comprehensive income -139654719.12 -163659046.29 VII. Earnings per share (EPS): (I) Basic EPS (yuan per share) (II) Diluted EPS (yuan per share) Legal representative:Chen Ming Officer in charge of accounting:Wang Jianfei Head of accounting department: Zhou Hongpu 882025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.Consolidated cash flow statement for the year ended December 31 2025 (Expressed in Renminbi Yuan) Items Note Current period Preceding periodNo. cumulative comparative I. Cash flows from operating activities: Cash receipts from sale of goods or rendering of services 249184246.74 448831107.10 Net increase of client deposit and interbank deposit Net increase of central bank loans Net increase of loans from other financial institutions Cash receipts from original insurance contract premium Net cash receipts from reinsurance Net increase of policy-holder deposit and investment Cash receipts from interest handling fees and commissions Net increase of loans from others Net increase of repurchase Net cash receipts from agency security transaction Receipts of tax refund 14477207.75 20414313.02 Other cash receipts related to operating activities 2 (1) 4802922.19 15889802.02 Subtotal of cash inflows from operating activities 268464376.68 485135222.14 Cash payments for goods purchased and services received 159265542.61 350375195.02 Net increase of loans and advances to clients Net increase of central bank deposit and interbank deposit Cash payments for insurance indemnities of original insurance contracts Net increase of loans to others Cash payments for interest handling fees and commissions Cash payments for policy bonus Cash paid to and on behalf of employees 66521536.12 76680764.14 Cash payments for taxes and rates 85194960.04 133539738.45 Other cash payments related to operating activities 2 (2) 52801771.84 51943474.32 Subtotal of cash outflows from operating activities 363783810.61 612539171.93 Net cash flows from operating activities -95319433.93 -127403949.79 II. Cash flows from investing activities: Cash receipts from withdrawal of investments Cash receipts from investment income 1 (1) 778495.00 777600.00 Net cash receipts from the disposal of fixed assets intangible assets and other long- term assets 1 (2) 162736.20 519930.21 Net cash receipts from the disposal of subsidiaries & other business units 1 (3) 78085.65 568863.59 Other cash receipts related to investing activities 2 (3) 1114167212.32 Subtotal of cash inflows from investing activities 1115186529.17 1866393.80 Cash payments for the acquisition of fixed assets intangible assets and other long- term assets 1 (4) 1905620.00 1547315.83 Cash payments for investments Net increase of pledged borrowings Net cash payments for the acquisition of subsidiaries & other business units Other cash payments related to investing activities 2 (4) 1160000000.00 90000000.00 Subtotal of cash outflows from investing activities 1161905620.00 91547315.83 Net cash flows from investing activities -46719090.83 -89680922.03 III. Cash flows from financing activities: Cash receipts from absorbing investments Including: Cash received by subsidiaries from non-controlling shareholders as investments Cash receipts from borrowings 50000.00 1563000.00 Other cash receipts related to financing activities Subtotal of cash inflows from financing activities 50000.00 1563000.00 Cash payments for the repayment of borrowings 96162025.65 117562497.60 Cash payments for distribution of dividends or profits and for interest expenses 3760510.21 5251186.81 Including: Cash paid by subsidiaries to non-controlling shareholders as dividend or profit Other cash payments related to financing activities Subtotal of cash outflows from financing activities 99922535.86 122813684.41 Net cash flows from financing activities -99872535.86 -121250684.41 IV. Effect of foreign exchange rate changes on cash and cash equivalents -107272.95 99397.32 V. Net increase in cash and cash equivalents -242018333.57 -338236158.91 Add: Opening balance of cash and cash equivalents 520910254.44 859146413.35 VI. Closing balance of cash and cash equivalents 278891920.87 520910254.44 Legal representative:Chen Ming Officer in charge of accounting:Wang Jianfei Head of accounting department: Zhou Hongpu 892025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.Parent company cash flow statement for the year ended December 31 2025 (Expressed in Renminbi Yuan) Items Current period Preceding periodcumulative comparative I. Cash flows from operating activities: Cash receipts from sale of goods and rendering of services 60541112.28 73948934.37 Receipts of tax refund 78381.82 Other cash receipts related to operating activities 1063939.44 92592202.32 Subtotal of cash inflows from operating activities 61605051.72 166619518.51 Cash payments for goods purchased and services received 14700881.22 878298.06 Cash paid to and on behalf of employees 32496371.88 40882224.68 Cash payments for taxes and rates 13179103.88 24077901.52 Other cash payments related to operating activities 952087247.22 42931087.13 Subtotal of cash outflows from operating activities 1012463604.20 108769511.39 Net cash flows from operating activities -950858552.48 57850007.12 II. Cash flows from investing activities: Cash receipts from withdrawal of investments Cash receipts from investment income 915013.90 1346463.59 Net cash receipts from the disposal of fixed assets intangible assets and other long-term assets 1507.50 Net cash receipts from the disposal of subsidiaries & other business units Other cash receipts related to investing activities 1114167212.32 Subtotal of cash inflows from investing activities 1115083733.72 1346463.59 Cash payments for the acquisition of fixed assets intangible assets and other long-term assets 1962727.29 365798.00 Cash payments for investments Net cash payments for the acquisition of subsidiaries & other business units Other cash payments related to investing activities 110000000.00 90000000.00 Subtotal of cash outflows from investing activities 111962727.29 90365798.00 Net cash flows from investing activities 1003121006.43 -89019334.41 III. Cash flows from financing activities: Cash receipts from absorbing investments Cash receipts from borrowings Other cash receipts related to financing activities Subtotal of cash inflows from financing activities Cash payments for the repayment of borrowings 62648446.42 125173.20 Cash payments for distribution of dividends or profits and for interest expenses 3386158.31 2026547.84 Other cash payments related to financing activities Subtotal of cash outflows from financing activities 66034604.73 2151721.04 Net cash flows from financing activities -66034604.73 -2151721.04 IV. Effect of foreign exchange rate changes on cash and cash equivalents V. Net increase in cash and cash equivalents -13772150.78 -33321048.33 Add: Opening balance of cash and cash equivalents 83656432.61 116977480.94 VI. Closing balance of cash and cash equivalents 69884281.83 83656432.61 Legal representative:Chen Ming Officer in charge of accounting:Wang Jianfei Head of accounting department: Zhou Hongpu 902025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.Consolidated statement of changes in equity for the year ended December 31 2025 (Expressed in Renminbi Yuan) Current period cumulative Equity attributable to parent company Items Other equity instruments Less: Other General Non-controlling Share capital Capital reserve Treasury comprehensive Special Surplus risk UndistributedPreferred Perpetual interest Total equity Others shares income reserve reserve reserve profitshares bonds I. Balance at the end of prior year 1011660000.00 978244910.11 23060416.31 275253729.26 1223893437.74 -116725425.75 3395387067.67 Add: Cumulative changes of accounting policies Error correction of prior period Business combination under common control Others II. Balance at the beginning of current year 1011660000.00 978244910.11 23060416.31 275253729.26 1223893437.74 -116725425.75 3395387067.67 III. Current period increase (or less: decrease) 254699.21 99956003.75 -26118571.43 74092131.53 (I) Total comprehensive income 254699.21 99956003.75 784750.35 100995453.31 (II) Capital contributed or withdrawn by owners -26903321.78 -26903321.78 1. Ordinary shares contributed by owners 2. Capital contributed by holders of other equity instruments 3. Amount of share-based payment included in equity 4. Others -26903321.78 -26903321.78 (III) Profit distribution 1. Appropriation of surplus reserve 2. Appropriation of general risk reserve 3. Appropriation of profit to shareholders 4. Others (IV) Internal carry-over within equity 1. Transfer of capital reserve to capital 2. Transfer of surplus reserve to capital 3. Surplus reserve to cover losses 4. Changes in defined benefit plan carried over to retained earnings 5. Other comprehensive income carried over to retained earnings 6. Others (V) Special reserve 1. Current period appropriation 2. Current period use (VI) Others IV. Balance at the end of current period 1011660000.00 978244910.11 23315115.52 275253729.26 1323849441.49 -142843997.18 3469479199.20 912025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Legal representative:Chen Ming Officer in charge of accounting:Wang Jianfei Head of accounting department:Zhou Hongpu 922025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.Consolidated statement of changes in equity for the year ended December 31 2025 (continued) (Expressed in Renminbi Yuan) Preceding period comparative Equity attributable to parent company Items Other equity instruments Less: Other Special Surplus General Non-controlling Share capital Undistributed Total equity Preferred Perpetual Capital reserve Treasury comprehensive risk interest shares bonds Others shares income reserve reserve reserve profit I. Balance at the end of prior year 1011660000.00 978244910.11 25319459.44 275253729.26 1400604385.39 85060410.22 3776142894.42 Add: Cumulative changes of accounting policies Error correction of prior period Business combination under common control Others II. Balance at the beginning of current year 1011660000.00 978244910.11 25319459.44 275253729.26 1400604385.39 85060410.22 3776142894.42 III. Current period increase (or less: decrease) -2259043.13 -176710947.65 -201785835.97 -380755826.75 (I) Total comprehensive income -2259043.13 -176710947.65 -201785835.97 -380755826.75 (II) Capital contributed or withdrawn by owners 1. Ordinary shares contributed by owners 2. Capital contributed by holders of other equity instruments 3. Amount of share-based payment included in equity 4. Others (III) Profit distribution 1. Appropriation of surplus reserve 2. Appropriation of general risk reserve 3. Appropriation of profit to shareholders 4. Others (IV) Internal carry-over within equity 1. Transfer of capital reserve to capital 2. Transfer of surplus reserve to capital 3. Surplus reserve to cover losses 4. Changes in defined benefit plan carried over to retained earnings 5. Other comprehensive income carried over to retained earnings 6. Others (V) Special reserve 1. Current period appropriation 2. Current period use (VI) Others IV. Balance at the end of current period 1011660000.00 978244910.11 23060416.31 275253729.26 1223893437.74 -116725425.75 3395387067.67 932025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Legal representative:Chen Ming Officer in charge of accounting:Wang Jianfei Head of accounting department:Zhou Hongpu 942025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.Parent company statement of changes in equity for the year ended December 31 2025 (Expressed in Renminbi Yuan) Current period cumulative Items Other equity instruments Less: Other Share capital SpecialPreferred Perpetual Capital reserve Treasury comprehensive reserve Surplus reserve Undistributed profit Total equity shares bonds Others shares income I. Balance at the end of prior year 1011660000.00 964711931.13 2023005.89 252124115.85 1237671562.02 3468190614.89 Add: Cumulative changes of accounting policies Error correction of prior period Others II. Balance at the beginning of current year 1011660000.00 964711931.13 2023005.89 252124115.85 1237671562.02 3468190614.89 III. Current period increase (or less: decrease) -94372.03 -139560347.09 -139654719.12 (I) Total comprehensive income -94372.03 -139560347.09 -139654719.12 (II) Capital contributed or withdrawn by owners 1. Ordinary shares contributed by owners 2. Capital contributed by holders of other equity instruments 3. Amount of share-based payment included in equity 4. Others (III) Profit distribution 1. Appropriation of surplus reserve 2. Appropriation of profit to shareholders 3. Others (IV) Internal carry-over within equity 1. Transfer of capital reserve to capital 2. Transfer of surplus reserve to capital 3. Surplus reserve to cover losses 4. Changes in defined benefit plan carried over to retained earnings 5. Other comprehensive income carried over to retained earnings 6. Others (V) Special reserve 1. Current period appropriation 2. Current period use (VI) Others IV. Balance at the end of current period 1011660000.00 964711931.13 1928633.86 252124115.85 1098111214.93 3328535895.77 Legal representative:Chen Ming Officer in charge of accounting:Wang Jianfei Head of accounting department:Zhou Hongpu 952025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.Parent company statement of changes in equity for the year ended December 31 2025(continued) (Expressed in Renminbi Yuan) Preceding period comparative Items Other equity instruments Less: Other Share capital Special UndistributedPreferred Perpetual Capital reserve Treasury comprehensive reserve Surplus reserveOthers shares income profit Total equity shares bonds I. Balance at the end of prior year 1011660000.00 964711931.13 1743308.51 252124115.85 1401610305.69 3631849661.18 Add: Cumulative changes of accounting policies Error correction of prior period Others II. Balance at the beginning of current year 1011660000.00 964711931.13 1743308.51 252124115.85 1401610305.69 3631849661.18 III. Current period increase (or less: decrease) 279697.38 -163938743.67 -163659046.29 (I) Total comprehensive income 279697.38 -163938743.67 -163659046.29 (II) Capital contributed or withdrawn by owners 1. Ordinary shares contributed by owners 2. Capital contributed by holders of other equity instruments 3. Amount of share-based payment included in equity 4. Others (III) Profit distribution 1. Appropriation of surplus reserve 2. Appropriation of profit to shareholders 3. Others (IV) Internal carry-over within equity 1. Transfer of capital reserve to capital 2. Transfer of surplus reserve to capital 3. Surplus reserve to cover losses 4. Changes in defined benefit plan carried over to retained earnings 5. Other comprehensive income carried over to retained earnings 6. Others (V) Special reserve 1. Current period appropriation 2. Current period use (VI) Others IV. Balance at the end of current period 1011660000.00 964711931.13 2023005.89 252124115.85 1237671562.02 3468190614.89 Legal representative:Chen Ming Officer in charge of accounting:Wang Jianfei Head of accounting department:Zhou Hongpu 962025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Shenzhen Special Economic Zone Real Estate (Group) Co. Ltd Notes to the Financial Statements 2025 Amount in RMB 1、 Basic information of the company Shenzhen Special Economic Zone Real Estate (Group) Co. Ltd. (hereinafter referred to as the company or the company) was reorganized and established as a joint stock limited company on the basis of the former Shenzhen Special Economic Zone Real Estate Corporation with the approval of the general office of the Shenzhen Municipal People's government. It was registered with the Shenzhen Administration for Industry and Commerce of Guangdong Province in July 1993 and is headquartered in Shenzhen Guangdong Province.The unified social credit code of the company is 91440300192179585N the registered capital is 1011660000.00 yuan and the total number of shares is 1011660000 shares (par value 1 yuan per share). Among them 891660000 A-shares and 120000000 B-shares were outstanding without restrictions. The company's shares were listed and traded on the Shenzhen Stock Exchange on September 15 1993 and January 10 1994 respectively. The company belongs to the real estate industry. The main business activities are real estate development and commercial housing sales property leasing and management commodity retail and trade hotel business equipment installation and maintenance construction interior decoration and other businesses.The financial statements have been approved by the 28th meeting of the eighth board of directors of the company on March 18 2026. 2、 Basis of preparation of financial statements （1） Basis of compilation The financial statements of the company are prepared on a going concern basis. （2） Sustainability assessment The company has no events or circumstances that cause material doubts about its ability to continue as a going concern within 12 months from the end of the reporting period. 3、 Significant accounting policies and accounting estimates 972025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Important note: according to the actual production and operation characteristics the company has formulated specific accounting policies and accounting estimates for transactions or events such as impairment of financial instruments inventory depreciation of fixed assets construction in progress intangible assets and revenue recognition. （1） Statement of compliance with accounting standards for business enterprises The financial statements prepared by the company comply with the requirements of the accounting standards for business enterprises and truly and completely reflect the financial position operating results and cash flow of the company. （2） Fiscal period The fiscal year starts on January 1 and ends on December 31 of the Gregorian calendar. （3） Business cycle The business cycle of the company's business is relatively short and 12 months is used as the liquidity classification standard of assets and liabilities. The business cycle of the real estate industry from real estate development to sales realization is generally more than 12 months and the specific cycle is determined according to the development project and its business cycle is used as the liquidity classification standard of assets and liabilities. （4） Bookkeeping base currency RMB is used as the bookkeeping base currency. The company and its overseas Hong Kong subsidiaries adopt RMB as the bookkeeping base currency and the overseas subsidiaries of great wall real estate Co. Ltd. are engaged in overseas operations and the US dollar the currency in the main economic environment in which they operate is selected as the bookkeeping base currency.The currency used by the company for the preparation of these financial statements is RMB. （5） Determination method and selection basis of importance standard The company's preparation and disclosure of the financial statements comply with the principle of materiality. The matters disclosed in the notes to the financial statements that involve the judgment of the materiality standard and the determination method and selection basis of the materiality standard are as follows: Judgment involving importance criteria Determination method and selection basis of disclosures importance standard Recovery or reversal of bad debt reserves for important notes receivable The single amount exceeds 0.5% of the total assets Important write off notes receivable The single amount exceeds 0.5% of the total assets Important accounts receivable with single provision for bad debts The single amount exceeds 0.5% of the total assets Recovery or reversal of bad debt reserves for important accounts receivable The single amount exceeds 0.5% of the total assets Important write off accounts receivable The single amount exceeds 0.5% of the total assets Other receivables with important single provision for bad debts The single amount exceeds 0.5% of the total assets Recovery or reversal of bad debt reserves for important other receivables The single amount exceeds 0.5% of the total assets Important write off of other receivables The single amount exceeds 0.5% of the total assets Important contract assets with individual provision for impairment The single amount exceeds 0.5% of the total assets Recovery or reversal of provision for impairment of important contract assets The single amount exceeds 0.5% of the total assets 982025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Important write off contract assets The single amount exceeds 0.5% of the total assets Significant change in book value of contract assets The change amount exceeds 0.5% of the total assets Important prepayments older than 1 year The single amount exceeds 0.5% of the total assets Important projects under construction The total investment in a single project exceeds0.5% of the total assets Significant overdue borrowings The single amount exceeds 0.5% of the total assets Significant overdue interest payable The single amount exceeds 0.5% of the total assets Important accounts payable older than 1 year The single amount exceeds 0.5% of the total assets Other accounts payable with important account age exceeding 1 year The single amount exceeds 0.5% of the total assets Important advance receipts older than 1 year or overdue The single amount exceeds 0.5% of the total assets Important contract liabilities with an account age of more than one year The single amount exceeds 0.5% of the total assets Significant change in book value of contract liabilities The change amount exceeds 0.5% of the total assets Cash flow from important investment activities The single amount exceeds 5% of the total assets Important subsidiaries and non wholly- Total assets/total revenue/total profit exceeds 15% owned subsidiaries of total assets/total revenue/total profit of the group The book value of a single long-term equity investment exceeds 15% of the group's net Important joint ventures and associates assets/the investment income calculated by a single equity method exceeds 15% of the group's total profit （6） Accounting treatment methods for business combinations under the common control and not under the common control 1. Accounting treatment of business combination under the common control The assets and liabilities obtained by the company in the merger of enterprises shall be measured according to the book value of the combined party in the consolidated financial statements of the final controller on the merger date. The company adjusts the capital reserve according to the difference between the book value share of the owner's equity of the merged party in the consolidated financial statements of the final controller and the book value of the merger consideration paid or the total face value of the shares issued; If the capital reserve is insufficient to offset the retained earnings shall be adjusted. 2. Accounting treatment of business combinations not under the common control On the acquisition date the difference between the merger cost and the fair value share of the identifiable net assets of the acquiree obtained in the merger is recognized as goodwill; If the merger cost is less than the fair value share of the identifiable net assets of the acquiree obtained in the merger the fair value of the identifiable assets liabilities and contingent liabilities of the acquiree obtained and the measurement of the merger cost shall be reviewed first. If the merger cost is still less than the fair value share of the identifiable net assets of the acquiree obtained in the merger after review the difference shall be included in the current profit and loss.（ 7 ） Judgment criteria for control and preparation method of consolidated financial statements 992025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. 1. Judgment of control It is recognized as control if it has the power over the investee enjoys variable returns by participating in the relevant activities of the investee and has the ability to use its power over the investee to affect its variable return amount. 2. Preparation method of consolidated financial statements The parent company includes all subsidiaries under its control in the scope of consolidation of the consolidated financial statements. The consolidated financial statements are based on the financial statements of the parent company and its subsidiaries and are prepared by the parent company in accordance with the accounting standards for enterprises No.33-consolidated financial statements in accordance with other relevant information.（ 8 ） Classification of joint venture arrangements and accounting treatment of joint operations 1. Joint venture arrangements are divided into joint ventures and joint ventures. 2. When the company is a joint venture party to a joint operation the following items related to the share of interests in the joint operation shall be recognized: (1) Confirm the assets held separately and the assets held jointly according to the holding share; (2) Recognize the liabilities assumed separately and the liabilities assumed jointly according to the holding share; (3) Recognize the income generated by the sale of the company's share of joint operating output; (4) Recognize the income generated from the sale of assets in the joint operation according to the company's holding share; (5) Confirm the expenses incurred separately and the expenses incurred in joint operation according to the share held by the company. （9） Criteria for determining cash and cash equivalents Cash listed in the cash flow statement refers to cash on hand and deposits that can be used for payment at any time. Cash equivalents refer to investments held by enterprises with short term strong liquidity easy conversion to known amounts of cash and little risk of value changes. （10） Foreign currency business and translation of foreign currency statements 1. Translation of foreign currency business When foreign currency transactions are initially recognized they are converted into RMB at the spot exchange rate on the date of the transaction. On the balance sheet date foreign currency monetary items are converted at the spot exchange rate on the balance sheet date. The exchange difference arising from different exchange rates is included in the current profit and loss except for the exchange difference between the principal and interest of foreign currency special loans related to the purchase and construction of assets eligible for capitalization; Non monetary items in foreign currencies measured at historical cost shall still be converted at the spot exchange rate on the date of transaction without changing their RMB amount; Non monetary items in foreign currencies measured at fair value are translated at the spot exchange rate on the date of determination of fair value and the difference is included in current profits and losses or other comprehensive income. 2. Translation of foreign currency financial statements The assets and liabilities in the balance sheet shall be converted at the spot exchange rate on 1002025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. the balance sheet date; Except for the "undistributed profit" item other items of owner's equity are converted at the spot exchange rate on the transaction date; The income and expense items in the income statement shall be converted at the approximate exchange rate of the spot exchange rate on the date of transaction. The translation difference of foreign currency financial statements arising from the above conversion is included in other comprehensive income. （11） Financial instruments 1. Classification of financial assets and liabilities Financial assets are divided into the following three categories at initial recognition: (1) financial assets measured at amortized cost; (2) Financial assets measured at fair value with changes included in other comprehensive income; (3) Financial assets measured at fair value and whose changes are included in the current profit and loss.Financial liabilities are divided into the following four categories at initial recognition: (1) financial liabilities measured at fair value and whose changes are included in the current profit and loss; (2) The transfer of financial assets does not meet the conditions for termination of recognition or continues to be involved in the financial liabilities formed by the transferred financial assets; (3) Financial guarantee contracts that do not belong to (1) or (2) above and loan commitments that do not belong to (1) above and lend at a lower market interest rate; (4) Financial liabilities measured at amortized cost. 2. Recognition basis measurement method and conditions for termination of recognition of financial assets and financial liabilities (1) Recognition basis and initial measurement method of financial assets and financial liabilities A financial asset or financial liability is recognized when the company becomes a party to a financial instrument contract. When financial assets or financial liabilities are initially recognized they are measured at fair value; For financial assets and financial liabilities measured at fair value and whose changes are included in the current profit and loss the relevant transaction costs are directly included in the current profit and loss; For other types of financial assets or financial liabilities the relevant transaction costs are included in the initial recognition amount. However if the accounts receivable initially recognized by the company does not contain major financing components or the company does not consider the financing components in contracts not exceeding one year the initial measurement shall be made in accordance with the transaction price defined in the accounting standards for enterprises No.14 - revenue. (2) Subsequent measurement methods of financial assets 1) Financial assets measured at amortized cost The effective interest rate method is adopted for subsequent measurement according to the amortized cost. Gains or losses arising from financial assets measured at amortized cost and not part of any hedging relationship are included in the current profit and loss when they are derecognized reclassified amortized or recognized as impaired under the effective interest rate method. 2) Investment in debt instruments at fair value through other comprehensive income Fair value is used for subsequent measurement.Interest impairment losses or gains and exchange gains and losses calculated using the effective interest rate method are included in the current profit and loss while other gains or losses are included in other comprehensive income. At the time of termination of recognition the cumulative gains or losses previously included in other 1012025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. comprehensive income shall be transferred out of other comprehensive income and included in the current profit and loss. 3) Equity instrument investments measured at fair value with changes included in other comprehensive income Fair value is used for subsequent measurement. Dividends obtained (except for the part of investment cost recovery) are included in the current profit and loss and other gains or losses are included in other comprehensive income. At the time of termination of recognition the cumulative gains or losses previously included in other comprehensive income are transferred out of other comprehensive income and included in retained earnings. 4) Financial assets measured at fair value with changes included in current profit and loss Subsequent measurement is carried out at fair value and the resulting gains or losses (including interest and dividend income) are included in the current profit and loss unless the financial asset is part of the hedging relationship. (3) Subsequent measurement methods of financial liabilities 1) Financial liabilities measured at fair value with changes included in current profit and loss Such financial liabilities include trading financial liabilities (including derivatives belonging to financial liabilities) and financial liabilities designated as measured at fair value and whose changes are included in the current profit and loss. Such financial liabilities are subsequently measured at fair value. The amount of change in fair value of financial liabilities designated as measured at fair value through profit or loss due to changes in the company's own credit risk is included in other comprehensive income unless the treatment will cause or expand the accounting mismatch in profit or loss.Other gains or losses arising from such financial liabilities (including interest expenses except changes in fair value caused by changes in the company's own credit risk) are included in the current profit and loss unless the financial liabilities are part of the hedging relationship. At the time of termination of recognition the cumulative gains or losses previously included in other comprehensive income are transferred out of other comprehensive income and included in retained earnings. 2) Financial liabilities formed by the transfer of financial assets that do not meet the conditions for termination of recognition or continue to be involved in the transferred financial assets It is measured in accordance with the relevant provisions of the accounting standards for enterprises No.23 - transfer of financial assets. 3) Financial guarantee contracts that do not belong to 1) or 2) above and loan commitments that do not belong to 1) above and lend at a lower market interest rate After initial recognition subsequent measurement shall be made according to the higher of the following two amounts: * The amount of loss reserves determined in accordance with the impairment provisions of financial instruments; * The balance of the initially recognized amount after deducting the cumulative amortization determined in accordance with the relevant provisions of the accounting standards for enterprises No.14 - revenue. 4) Financial liabilities measured at amortized cost The effective interest rate method is used to measure at amortized cost. Gains or losses arising from financial liabilities measured at amortized cost and not part of any hedging relationship are included in the current profit and loss when they are derecognized and amortized according to the effective interest rate method. 1022025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. (4) Derecognition of financial assets and financial liabilities 1) When one of the following conditions is met the recognition of financial assets is terminated: * The contractual right to collect cash flows from financial assets has been terminated; * Financial assets have been transferred and the transfer meets the provisions of the accounting standards for enterprises No.23 - transfer of financial assets on the termination of recognition of financial assets. 2) When the current obligation of a financial liability (or part of it) has been discharged the recognition of the financial liability (or part of the financial liability) shall be terminated accordingly. 3. Recognition basis and measurement method of transfer of financial assets If the company transfers almost all the risks and rewards of the ownership of a financial asset it shall terminate the recognition of the financial asset and the rights and obligations arising or retained in the transfer shall be separately recognized as assets or liabilities; If almost all the risks and rewards of the ownership of financial assets are retained the transferred financial assets shall continue to be recognized. If the company neither transfers nor retains almost all the risks and remuneration of the ownership of financial assets it shall be dealt with as follows: (1) if it does not retain control over the financial assets the recognition of the financial assets shall be terminated and the rights and obligations arising or retained in the transfer shall be separately recognized as assets or liabilities; (2) If the control over the financial assets is retained the relevant financial assets shall be recognized according to the degree of continued involvement in the transferred financial assets and the relevant liabilities shall be recognized accordingly.If the overall transfer of financial assets meets the conditions for termination of recognition the difference between the following two amounts shall be included in the current profit and loss: (1) the book value of the transferred financial assets on the date of termination of recognition; (2) The sum of the consideration received from the transfer of financial assets and the amount of the corresponding derecognized part of the cumulative changes in fair value originally directly included in other comprehensive income (the financial assets involved in the transfer are debt instrument investments measured at fair value and whose changes are included in other comprehensive income).If a part of a financial asset is transferred and the transferred part as a whole meets the conditions for termination of recognition the overall book value of the financial asset before transfer shall be apportioned between the part that is terminated and the part that continues to be recognized according to their respective relative fair values on the transfer date and the difference between the following two amounts shall be included in the current profit and loss: (1) the book value of the part that is terminated; (2) The sum of the consideration of the part whose recognition is terminated and the amount of the part whose recognition is terminated corresponding to the cumulative amount of fair value changes originally directly included in other comprehensive income (the financial assets involved in transfer are debt instrument investments measured at fair value and whose changes are included in other comprehensive income). 4. Determination method of fair value of financial assets and financial liabilities The company adopts valuation techniques that are applicable in the current situation and supported by sufficient available data and other information to determine the fair value of relevant financial assets and financial liabilities.The company divides the input values used in the valuation technology into the following levels and uses them in turn: 1032025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. (1) The input value of the first level is the unadjusted quotation of the same assets or liabilities that can be obtained on the measurement date in the active market; (2) The second level input value is the directly or indirectly observable input value of related assets or liabilities in addition to the first level input value including: the quotation of similar assets or liabilities in the active market;Quotations for identical or similar assets or liabilities in inactive markets;Other observable inputs other than quotation such as interest rate and yield curve observable during normal quotation interval; Input value of market verification etc; (3) The third level of input value is the unobservable input value of related assets or liabilities including interest rates that cannot be directly observed or verified by observable market data stock volatility future cash flow of disposal obligations undertaken in business mergers financial forecasts made using their own data etc. 5. Impairment of financial instruments On the basis of expected credit losses the company carries out impairment treatment on financial assets measured at amortized cost debt instrument investments measured at fair value with changes included in other comprehensive income contract assets lease receivables loan commitments other than financial liabilities classified as financial liabilities measured at fair value with changes included in current profit and loss financial liabilities not measured at fair value with changes included in current profit and loss or financial guarantee contracts not belonging to financial assets whose transfer does not meet the conditions for termination of recognition or continues to be involved in the transferred financial assets and recognizes loss reserves.Expected credit losses refer to the weighted average value of credit losses of financial instruments weighted by the risk of default.Credit loss refers to the difference between all contract cash flows receivable under the contract and all cash flows expected to be received by the company discounted at the original effective interest rate that is the present value of all cash shortages.Among them the financial assets purchased or generated by the company that have suffered credit impairment are discounted at the effective interest rate adjusted by the credit of the financial assets.For financial assets purchased or generated with credit impairment the company only recognizes the cumulative changes in expected credit losses during the whole duration after initial recognition as loss reserves on the balance sheet date.For lease receivables receivables and contract assets formed by transactions regulated by the accounting standards for enterprises No.14 - income the company uses a simplified measurement method to measure the loss reserve according to the expected credit loss amount equivalent to the whole duration.For financial assets other than the above measurement methods the company assesses whether its credit risk has increased significantly since initial recognition on each balance sheet date.If the credit risk has increased significantly since initial recognition the company measures the loss reserve according to the amount of expected credit loss during the whole duration; If the credit risk has not increased significantly since initial recognition the company measures the loss reserve according to the amount of expected credit loss of the financial instrument in the next 12 months.The company uses available reasonable and evidentiary information including forward- looking information to determine whether the credit risk of financial instruments has increased significantly since initial recognition by comparing the risk of default of financial instruments on 1042025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. the balance sheet date with the risk of default on the initial recognition date.On the balance sheet date if the company judges that a financial instrument has only a low credit risk it is assumed that the credit risk of the financial instrument has not increased significantly since initial recognition.The company assesses the expected credit risk and measures the expected credit loss on the basis of a single financial instrument or a combination of financial instruments.When based on the portfolio of financial instruments the company divides financial instruments into different portfolios based on common risk characteristics.The company remeasures the expected credit loss on each balance sheet date and the increase or reversal of the loss provision thus formed is included in the current profit and loss as an impairment loss or gain.For financial assets measured at amortized cost the loss provision shall be offset against the book value of the financial assets listed in the balance sheet;For creditor's rights investments measured at fair value and whose changes are included in other comprehensive income the company recognizes its loss reserves in other comprehensive income and does not offset the book value of the financial asset. 6. Set off of financial assets and financial liabilities Financial assets and financial liabilities are presented separately in the balance sheet and do not offset each other.However if the following conditions are met at the same time the company shall list them in the balance sheet at the net amount after mutual offset: (1) the company has the legal right to offset the recognized amount and such legal right is currently enforceable; (2) The company plans to settle at a net amount or realize the financial assets and settle the financial liabilities at the same time.For the transfer of financial assets that do not meet the conditions for termination of recognition the company will not offset the transferred financial assets and related liabilities. （12） Recognition criteria and provision methods for expected credit losses of receivables and contract assets 1. Receivables and contract assets with expected credit losses withdrawn according to the combination of credit risk characteristics Portfolio category Basis for determining portfolio Methods of measuringexpected credit losses Bank acceptance bills Referring to the experience of receivable historical credit losscombined with the current situation and the forecast of Note type future economic conditionsthe expected credit loss is Commercial acceptance bills calculated through default receivable risk exposure and the expected credit loss rate for the whole duration Accounts receivable portfolio of Referring to the experience of related parties within the scope Nature of payment historical credit loss of consolidation combined with the current Accounts receivable - portfolio situation and the forecast of of real estate sales receivables Nature of payment future economic conditions Accounts receivable the expected credit loss is construction portfolio Nature of payment calculated through default Accounts receivable - accounts receivable from other customer Nature of payment risk exposure and the expected credit loss rate for 1052025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Portfolio category Basis for determining portfolio Methods of measuringexpected credit losses portfolios the whole duration Other receivables - portfolio of receivables from government Nature of payment Referring to historical credit departments loss experience combined Other receivables - employee with the current situation and reserve portfolio receivable Nature of payment the forecast of future Other receivables - combination economic conditions the of receivables and payments Nature of payment expected credit loss is Other receivables portfolio of calculated through default receivables from related parties Nature of payment risk exposure and theexpected credit loss rate in Other receivables - portfolio of the next 12 months or the other current accounts Nature of payment whole duration receivable Contract asset real estate sales Referring to the experience of portfolio Nature of payment historical credit loss combined with the current situation and the forecast of future economic conditions Contract asset construction Nature of payment the expected credit loss isportfolio calculated through default risk exposure and the expected credit loss rate for the whole duration 2. Recognition criteria for receivables and contract assets with individual provision for expected credit losses For receivables and contract assets with significantly different credit risk and portfolio credit risk the company withdraws expected credit losses on a single basis. （13） Inventory 1. Classification of inventory Inventory includes development land development products development products temporarily leased for sale in the process of development and operation as well as development costs in the process of development. 2. Valuation method of issued inventory (1) Materials and equipment issued shall be priced individually. (2) During the development of the project the land for development shall be allocated according to the floor area of the development products and the grade coefficient of the occupied land and included in the development cost of the project. (3) The issued development products are accounted for according to the cost coefficient sharing method. (4) The development products and turnover houses temporarily leased for sale are amortized averagely by stages according to the estimated service life of the company's similar fixed assets. (5) If the public supporting facilities are completed earlier than the relevant development products they shall be included in the development costs of the relevant development projects according to the construction area distribution of the relevant development projects after the final settlement of the completion of the public supporting facilities;If the public supporting facilities are completed later than the relevant development products the public supporting facilities fee shall be accrued for the relevant development products first and the cost of the relevant 1062025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. development products shall be adjusted according to the difference between the actual amount and the accrued amount after the completion of the public supporting facilities. 3. Inventory system of inventory The inventory system of inventory is a perpetual inventory system. 4. Amortization method of low-value consumables and packaging materials (1) Low value consumables Amortization is carried out in batches according to the number of times of use. (2) Packaging Amortization is carried out in batches according to the number of times of use. 5. Provision for inventory depreciation On the balance sheet date inventory is measured at the lower of cost and net realisable value and provision for inventory depreciation is made according to the difference between cost and net realisable value.For inventory directly used for sale its net realized value shall be determined by the estimated selling price of the inventory minus the estimated selling expenses and related taxes in the normal process of production and operation;For the inventory that needs to be processed in the normal process of production and operation its net realized value shall be determined by the estimated selling price of the finished products produced minus the estimated cost to be incurred at the time of completion the estimated selling expenses and relevant taxes and fees;On the balance sheet date if there is a contract price agreement for some parts of the same inventory and no contract price for other parts the net realisable value shall be determined respectively and compared with its corresponding cost the amount of provision for inventory depreciation or reversal shall be determined respectively. （14） Long-term equity investments 1. Judgment of joint control and significant impact According to the relevant agreements there is common control over an arrangement and the relevant activities of the arrangement must be unanimously agreed by the participants sharing control rights before making decisions which is recognized as joint control.It has the power to participate in the decision-making of the financial and operating policies of the invested entity but it is not able to control or jointly control the formulation of these policies with other parties which is recognized as a significant impact. 2. Determination of investment cost (1) If the merger of enterprises under the same control is formed and the merger party takes the payment of cash the transfer of non cash assets the assumption of debts or the issuance of equity securities as the merger consideration the share of the book value of the owner's equity of the merged party in the consolidated financial statements of the final controller shall be regarded as its initial investment cost on the merger date.The capital reserve is adjusted for the difference between the initial investment cost of long-term equity investment and the book value of the merger consideration paid or the total face value of the shares issued;If the capital reserve is insufficient to offset the retained earnings shall be adjusted.The company realizes the long-term equity investment formed by the merger of enterprises under the same control step by step through multiple transactions and judges whether it belongs to a "package deal".If it belongs to a "package deal" each transaction shall be accounted for as a transaction to obtain control.If it does not belong to the "package deal" on the merger date the initial investment cost shall be determined according to the share of the book value of the net 1072025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. assets of the merged party in the consolidated financial statements of the final controller after the merger.The capital reserve shall be adjusted for the difference between the initial investment cost of the long-term equity investment on the merger date and the sum of the book value of the long- term equity investment before the merger plus the book value of the new payment consideration for the shares further obtained on the merger date;If the capital reserve is insufficient to offset the retained earnings shall be adjusted. (2) If the merger of enterprises not under the same control is formed the fair value of the merger consideration paid on the acquisition date shall be regarded as its initial investment cost.The company realizes the long-term equity investment formed by the merger of enterprises not under the same control step by step through multiple transactions and distinguishes between individual financial statements and consolidated financial statements for relevant accounting treatment: 1) In individual financial statements the sum of the book value of the equity investment originally held and the new investment cost is regarded as the initial investment cost calculated according to the cost method. 2) In the consolidated financial statements judge whether it belongs to a "package deal".If it belongs to a "package deal" each transaction shall be accounted for as a transaction to obtain control.If it is not a "package deal" the equity of the acquiree held before the acquisition date shall be re measured according to the fair value of the equity on the acquisition date and the difference between the fair value and its book value shall be included in the current investment income;If the equity of the acquiree held before the acquisition date involves other comprehensive income under the equity method the other comprehensive income related to it shall be transferred to the current income on the acquisition date.However other comprehensive income arising from the re measurement of net liabilities or changes in net assets of the defined benefit plan by the investee is excluded. (3) Except for the merger of enterprises: if it is obtained by paying cash the actual purchase price paid shall be regarded as its initial investment cost;If it is obtained by issuing equity securities the fair value of issuing equity securities shall be regarded as its initial investment cost;If it is obtained by debt restructuring its initial investment cost shall be determined in accordance with the accounting standards for enterprises NO.12 - debt restructuring;If it is obtained through the exchange of nonmonetary assets its initial investment cost shall be determined in accordance with the accounting standards for enterprises No.7 - exchange of nonmonetary assets. 3. Subsequent measurement and profit and loss recognition method The long-term equity investment controlled by the invested unit is accounted for by the cost method;The long-term equity investment in joint ventures and joint ventures shall be accounted for by the equity method. 4. Disposal of investment in subsidiaries through multiple transactions step by step until loss of control (1) Whether it belongs to the judgment principle of "package deal" If the equity investment in a subsidiary is disposed of step by step through multiple transactions until the control right is lost the company judges whether the step by step transaction belongs to a "package transaction" by combining the terms of the transaction agreement of each step of the step by step transaction the disposal consideration obtained respectively the object of 1082025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. selling equity the disposal method the disposal time and other information.The terms conditions and economic impact of each transaction meet one or more of the following circumstances which usually indicate that the multiple transactions belong to a "package deal": 1) These transactions were entered into simultaneously or with mutual influence in mind; 2) These deals as a whole can achieve a complete business outcome; 3) The occurrence of one transaction depends on the occurrence of at least one other transaction; 4) A transaction is uneconomical on its own but it is economical when considered with other transactions. (2) Accounting treatment not belonging to "package deal" 1) Individual financial statements The difference between the book value of the equity disposed of and the actual price obtained shall be included in the current profit and loss.For the remaining equity if it still has a significant impact on the invested entity or implements joint control with other parties it shall be accounted for by the equity method;If the invested entity can no longer be controlled jointly controlled or significantly affected it shall be accounted for in accordance with the relevant provisions of the accounting standards for enterprises No.22 - recognition and measurement of financial instruments. 2) Consolidated financial statements Before the loss of control the difference between the disposal price and the share of net assets continuously calculated by the subsidiary from the acquisition date or the merger date corresponding to the disposal of long-term equity investment shall be adjusted to the capital reserve (capital premium). If the capital premium is insufficient to offset the retained earnings shall be offset.When the control over the atomic company is lost the remaining equity shall be re measured at its fair value on the date of loss of control.The difference between the sum of the consideration obtained from the disposal of equity and the fair value of the remaining equity minus the share of the net assets of the original subsidiary continuously calculated from the acquisition date or the merger date calculated according to the original shareholding ratio shall be included in the investment income of the current period when the control right is lost and the goodwill shall be offset.Other comprehensive income related to the equity investment of the original subsidiary shall be converted to the current investment income when the control right is lost. (3) Accounting treatment of "package deal" 1) Individual financial statements Each transaction is accounted for as a transaction that disposes of subsidiaries and loses control.However the difference between each disposal price and the book value of the long-term equity investment corresponding to the disposal of the investment before the loss of control is recognized as other comprehensive income in individual financial statements and transferred to the profits and losses of the current period when the control is lost. 2) Consolidated financial statements Each transaction is accounted for as a transaction that disposes of subsidiaries and loses control.However before the loss of control the difference between each disposal price and the share of net assets of the subsidiary corresponding to the disposal of investment shall be recognized as other comprehensive income in the consolidated financial statements and shall be transferred to the profits and losses of the current period when the control is lost. 1092025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. （15） Investment properties 1. Investment real estate includes leased land use rights land use rights held and prepared for transfer after appreciation and leased buildings. 2. Investment real estate is initially measured at cost followed by cost mode and depreciated or amortized in the same way as fixed assets and intangible assets. （16） Fixed assets 1. Recognition conditions of fixed assets Fixed assets refer to tangible assets held for the production of commodities the provision of labor services leasing or operation and management with a service life of more than one fiscal year.Fixed assets are recognized when economic benefits are likely to flow in and costs can be reliably measured. 2. Depreciation method of various fixed assets Category Depreciation Depreciation Residual value Annual method life (years) rate (%) depreciationrate (%) Houses and buildings straight-linemethod 30 5.00 3.17 Transport equipment straight-linemethod 6 5.00 15.83 Electronics and others straight-linemethod 5 5.00 19.00 （17） Construction in progress 1. The construction in progress shall be recognized when the economic benefits are likely to flow in and the cost can be reliably measured.Construction in progress is measured at the actual cost incurred before the asset reaches the expected usable state. 2. When the construction in progress reaches the expected usable state it shall be transferred to fixed assets according to the actual cost of the project.If it has reached the expected usable state but has not yet handled the final settlement of completion it shall be transferred to fixed assets according to the estimated value first and then the original estimated value shall be adjusted according to the actual cost after the final settlement of completion but the original depreciation shall not be adjusted. （18） Borrowing costs 1. Recognition principle of capitalization of borrowing costs Borrowing costs incurred by the company that can be directly attributable to the purchase construction or production of assets eligible for capitalization shall be capitalized and included in the cost of related assets;Other borrowing costs are recognized as expenses when incurred and included in the current profit and loss. 2. Capitalization period of borrowing costs (1) When the borrowing costs meet the following conditions at the same time capitalization begins: 1) asset expenditure has occurred;2) Borrowing costs have been incurred;3) The acquisition and construction or production activities necessary to make the assets reach the intended usable or saleable state have begun. (2) If the assets eligible for capitalization are abnormally interrupted in the process of acquisition construction or production and the interruption time exceeds three consecutive months the capitalization of borrowing costs shall be suspended;Borrowing costs incurred during the interruption period are recognized as current expenses until the acquisition and construction of 1102025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. assets or the resumption of production activities. (3) When the assets purchased constructed or produced that meet the capitalization conditions reach the predetermined usable or saleable state the capitalization of borrowing costs shall stop. 3. Capitalization rate and capitalization amount of borrowing costs Where a special loan is borrowed for the purchase and construction or production of assets eligible for capitalization the amount of interest that should be capitalized shall be determined based on the interest expenses actually incurred in the current period of the special loan (including the amortization of discounts or premiums determined according to the effective interest rate method) less the interest income obtained by depositing the unused loan funds in the bank or the investment income obtained by temporary investment;If a general loan is occupied for the acquisition and construction or production of assets that meet the capitalization conditions the amount of interest that should be capitalized on the general loan shall be calculated and determined according to the weighted average of the asset expenditure of the cumulative asset expenditure exceeding the special loan multiplied by the capitalization rate of the general loan. （19） Intangible assets 1. Intangible assets include software land use rights etc. which are initially measured at cost. 2. Intangible assets with limited service life shall be amortized systematically and reasonably within the service life according to the expected realization mode of economic benefits related to the intangible assets and if the expected realization mode cannot be reliably determined the straight line method shall be used for amortization.The details are as follows: Projects Service life and its determination basis Amortizationmethod The expected realization mode of software economic benefits related to intangible Straight line assets 3-5 years method 3. Intangible assets with uncertain service life are not amortized and the company reviews the service life of the intangible assets in each accounting period. （20） Impairment of some long-term assets For long-term equity investment investment real estate measured by cost model fixed assets construction in progress right to use assets intangible assets with limited service life and other long-term assets if there are signs of impairment on the balance sheet date the recoverable amount is estimated.Intangible assets with uncertain goodwill and service life formed by business combination regardless of whether there are signs of impairment are tested for impairment every year.Goodwill is tested for impairment in combination with its related asset group or asset group portfolio.If the recoverable amount of the above-mentioned long-term assets is lower than its book value the provision for asset impairment shall be recognized according to the difference and included in the current profit and loss. （21） Long term deferred expenses The accounting of long-term deferred expenses has been paid and the amortization period is more than one year (excluding one year).Long-term deferred expenses are recorded according to the actual amount incurred and amortized evenly by stages during the benefit period or within the prescribed period.If the long-term deferred expense item can not benefit the subsequent accounting period the amortized value of the item that has not yet been amortized will be 1112025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. transferred to the current profit and loss. （22） Employee compensation 1. Employee remuneration includes short-term remuneration post employment benefits termination benefits and other long-term employee benefits. 2. Accounting treatment of short-term remuneration During the accounting period when employees provide services to the company the short- term remuneration actually incurred shall be recognized as liabilities and included in the current profit and loss or related asset costs. 3. Accounting treatment of post employment benefits Post employment benefits are divided into defined contribution plans and defined benefit plans. (1) During the accounting period when employees provide services to the company the amount payable calculated according to the defined contribution plan is recognized as a liability and included in the current profit and loss or related asset costs. (2) The accounting treatment of the defined benefit plan usually includes the following steps: 1) According to the expected cumulative welfare unit method unbiased and consistent actuarial assumptions are used to estimate the relevant demographic variables and financial variables measure the obligations arising from the establishment of the benefit plan and determine the period of the relevant obligations.At the same time the obligations arising from the establishment of the benefit plan are discounted to determine the present value of the obligations of the establishment of the benefit plan and the current service cost; 2) If there are assets in the defined benefit plan the deficit or surplus formed by the present value of the obligations of the defined benefit plan minus the fair value of the assets of the defined benefit plan shall be recognized as the net liabilities or net assets of a defined benefit plan.If there is a surplus in the defined benefit plan the net assets of the defined benefit plan shall be measured at the lower of the surplus of the defined benefit plan and the upper limit of assets; 3) At the end of the period the cost of employee remuneration arising from the defined benefit plan is recognized as service cost net interest on net liabilities or net assets of the defined benefit plan and changes arising from remeasurement of net liabilities or net assets of the defined benefit plan. Among them service cost and net interest on net liabilities or net assets of the defined benefit plan are included in current profit and loss or related asset costs. Changes arising from remeasurement of net liabilities or net assets of the defined benefit plan are included in other comprehensive income and are not allowed to be reversed to profit and loss in subsequent accounting periods but these amounts recognized in other comprehensive income can be transferred within the scope of equity. 4. Accounting treatment of termination benefits The termination benefits provided to employees shall be recognized as the employee compensation liabilities arising from the termination benefits as soon as possible whichever is earlier and shall be included in the current profit and loss: (1) when the company cannot unilaterally withdraw the termination benefits provided due to the termination of labor relations plans or layoffs; (2) When the company confirms the costs or expenses related to the reorganization involving the payment of termination benefits. 5. Accounting treatment of other long-term employee benefits Other long-term benefits provided to employees that meet the conditions of the defined 1122025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. contribution plan shall be accounted for in accordance with the relevant provisions of the defined contribution plan;In addition other long-term benefits shall be accounted for in accordance with the relevant provisions of the defined benefit plan. In order to simplify the relevant accounting treatment the total net amount of employee compensation costs arising from them shall be recognized as service costs net interest on net liabilities or net assets of other long-term employee welfare and changes in net liabilities or net assets of other long-term employee welfare shall be included in the current profit and loss or related asset costs. （23）Accounting method of maintenance fund According to the relevant provisions of the place where the development project is located the maintenance fund shall be collected from the buyer or withdrawn by the company into the development cost of the relevant development products when the development products are sold (pre-sale) and shall be uniformly handed over to the management department of the maintenance fund. （24） Quality margin accounting method The quality deposit shall be reserved from the project payment of the construction unit according to the provisions of the construction contract.The maintenance fee incurred during the warranty period of the development product shall be offset against the quality margin;Upon the expiration of the agreed warranty period for the developed products the balance of the quality deposit shall be returned to the construction unit. （25） Revenue 1. Revenue recognition principles On the commencement date of the contract the company evaluates the contract identifies each individual performance obligation contained in the contract and determines whether each individual performance obligation is performed within a certain period of time or at a certain point in time.If one of the following conditions is met it belongs to the performance obligation within a certain period of time otherwise it belongs to the performance obligation at a certain point of time: (1) the customer obtains and consumes the economic benefits brought about by the company's performance at the same time as the company's performance; (2) Customers can control the goods under construction in the process of performance of the company; (3) The goods produced in the process of performance by the company have irreplaceable uses and the company has the right to collect payment for the performance part that has been completed so far during the whole contract period.For the performance obligations performed within a certain period of time the company shall recognize the revenue according to the performance progress during that period.When the performance progress cannot be reasonably determined if the cost incurred is expected to be compensated revenue shall be recognized according to the amount of cost incurred until the performance progress can be reasonably determined.For the performance obligations performed at a certain time point revenue is recognized when the customer obtains control of the relevant goods or services.In judging whether the customer has obtained control of the goods the company considers the following signs: (1) the company enjoys the current collection right in respect of the goods that is the customer has the current payment obligation in respect of the goods; (2) The company has transferred the legal ownership of the commodity to the customer that is the customer has owned the legal ownership of the commodity; (3) The company has transferred the 1132025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. commodity in kind to the customer that is the customer has occupied the commodity in kind; (4) The company has transferred the main risks and rewards of the ownership of the commodity to the customer that is the customer has obtained the main risks and rewards of the ownership of the commodity; (5) The customer has accepted the product; (6) Other signs that customers have gained control of the goods. 2. Revenue measurement principles (1) The company shall measure the income according to the transaction price apportioned to each individual performance obligation.The transaction price is the amount of consideration the company is expected to be entitled to receive as a result of the transfer of goods or services to customers excluding payments received on behalf of third parties and payments expected to be returned to customers. (2) If there is a variable consideration in the contract the company shall determine the best estimate of the variable consideration according to the expected value or the most likely amount but the transaction price including the variable consideration shall not exceed the amount that will most likely not be significantly reversed when the relevant uncertainties are eliminated. (3) If there is a significant financing component in the contract the company shall determine the transaction price according to the amount payable assuming that the customer will pay in cash when obtaining control of the goods or services.The difference between the transaction price and the contract consideration is amortized by the effective interest rate method during the contract period. (4) If the contract contains two or more performance obligations the company shall apportion the transaction price to each individual performance obligation on the commencement date of the contract in accordance with the relative proportion of the individual selling price of the goods promised by each individual performance obligation. 3. Specific method of revenue recognition (1) Specific methods for recognizing real estate development and sales revenue The company's real estate sales business belongs to the performance obligation to be fulfilled at a certain point in time.The realization of sales revenue shall be recognized when the development products have been completed and accepted the sales contract has been signed and the obligations stipulated in the contract have been fulfilled the entry notice or announcement has been issued to the owner the real estate has been actually delivered to the owner or the delivery date stipulated in the contract has expired the full house price has been charged and the relevant costs incurred or to be incurred can be reliably measured. (2) Provide specific methods for recognizing property service income The company's provision of property management services belongs to the performance obligation to be performed within a certain period of time and revenue is recognized according to the performance progress.The company shall determine the performance progress of the services according to the time schedule. (3) Recognition method of engineering construction income The company provides construction engineering services. As the customer obtains and consumes the economic benefits brought about by the company's performance at the same time as the company performs the contract and the company has the right to collect funds for the performance part that has been completed so far during the whole contract period the company regards it as the performance obligation to perform within a certain period of time and recognizes 1142025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. revenue according to the performance progress unless the performance progress cannot be reasonably determined.The company determines the performance progress of providing services in accordance with the investment method.If the performance progress cannot be reasonably determined and the cost incurred by the company is expected to be compensated the revenue shall be recognized according to the amount of cost incurred until the performance progress can be reasonably determined. (4) Other revenue recognition methods Other income includes hotel operating income etc. for hotel room income as customers obtain and consume the economic benefits brought about by the company's performance at the same time as the company's performance the company regards it as a performance obligation to be performed within a certain period of time and recognizes the income according to the performance progress during the accounting period of providing services.For other income according to the provisions of relevant contracts and agreements the realization of income is recognized when the customer has obtained the control right of relevant commodities and the relevant funds have been received or the right to collect. （26） Contract acquisition cost and contract performance cost If the incremental cost incurred by the company to obtain the contract is expected to be recovered it shall be recognized as an asset as the cost of obtaining the contract.If the cost incurred by the company for the performance of the contract is not applicable to the scope of relevant standards such as inventory fixed assets or intangible assets and the following conditions are met at the same time it shall be recognized as an asset as the cost of contract performance: 1. The cost is directly related to a current or expected contract including direct labor direct materials manufacturing expenses (or similar expenses) costs clearly borne by the customer and other costs incurred solely as a result of the contract; 2. The cost increases the company's resources for fulfilling its performance obligations in the future; 3. The cost is expected to be recovered. The company amortizes the assets related to the contract cost on the same basis as the recognition of the revenue from goods or services related to the assets which is included in the current profit and loss.If the book value of an asset related to the contract cost is higher than the remaining consideration expected to be obtained due to the transfer of goods or services related to the asset minus the estimated cost to be incurred the company shall make an impairment provision for the excess and recognize it as an asset impairment loss.If the factors of impairment in the previous period change after that so that the remaining consideration expected to be obtained for the transfer of goods or services related to the asset minus the estimated cost to be incurred is higher than the book value of the asset the original provision for asset impairment shall be reversed and included in the current profit and loss but the book value of the asset after the reversal shall not exceed the book value of the asset on the reversal date assuming that no provision for impairment is made. （27） Contract assets and liabilities The company lists contract assets or contract liabilities in the balance sheet according to the relationship between the performance of performance obligations and customer payments.The 1152025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. company shall present the contract assets and contract liabilities under the same contract at a net amount after offsetting each other.The right of the company to receive consideration from customers unconditionally (that is only depending on the passage of time) is listed as a receivable and the right to receive consideration for goods that have been transferred to customers (depending on factors other than the passage of time) is listed as a contract asset.The company lists the obligation to transfer goods to customers for consideration received or receivable from customers as contract liabilities. （28） Government subsidies 1. Government subsidies shall be recognized when the following conditions are met at the same time: (1) the company can meet the conditions attached to government subsidies; (2) Companies receive government subsidies.If the government subsidy is a monetary asset it shall be measured according to the amount received or receivable.If the government subsidy is a nonmonetary asset it shall be measured at fair value;If the fair value cannot be obtained reliably it shall be measured at the nominal amount. 2. Judgment basis and accounting treatment method of government subsidies related to assets Government documents stipulate that government subsidies used for the purchase and construction or the formation of long-term assets in other ways are classified as government subsidies related to assets.If the government documents are not clear the judgment shall be based on the basic conditions that must be met to obtain the subsidy and the government subsidy related to assets shall be based on the formation of long-term assets by purchase and construction or other means.Government subsidies related to assets shall offset the book value of related assets or be recognized as deferred income.If the government subsidies related to assets are recognized as deferred income they shall be included in profits and losses by stages in a reasonable and systematic manner within the service life of the relevant assets.Government subsidies measured in nominal amounts are directly included in the current profits and losses.If the relevant assets are sold transferred scrapped or damaged before the end of their service life the balance of relevant deferred income that has not yet been allocated shall be transferred to the profits and losses of the current period of asset disposal. 3. Judgment basis and accounting treatment method of government subsidies related to income Government subsidies other than asset related government subsidies are classified as income related government subsidies.For government subsidies that include both asset related and income related parts it is difficult to distinguish between asset related or income related government subsidies which are classified as income related government subsidies as a whole.Government subsidies related to income if used to compensate for related costs or losses in subsequent periods shall be recognized as deferred income and shall be included in current profits and losses or offset related costs during the period when related costs or losses are recognized; If it is used to compensate the relevant costs or losses incurred it shall be directly included in the current profit and loss or offset the relevant costs. 4. Government subsidies related to the daily business activities of the company shall be included in other income or offset against related costs and expenses according to the essence of economic business. Government subsidies unrelated to the daily activities of the company shall be included in non operating income and expenditure. 1162025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. 5. Accounting treatment of discount interest on policy based preferential loans (1) If the finance allocates the discount funds to the lending bank and the lending bank provides loans to the company at the preferential policy interest rate the actual amount of loans received shall be taken as the entry value of the loans and the relevant borrowing costs shall be calculated according to the principal of the loans and the preferential policy interest rate. (2) If the finance allocates the discount funds directly to the company the corresponding discount will be offset against the relevant borrowing costs. （29） Deferred income tax assets and deferred income tax liabilities 1. According to the difference between the book value of assets and liabilities and their tax basis (if the tax basis of items not recognized as assets and liabilities can be determined in accordance with the tax law the difference between the tax basis and its book value) the deferred income tax assets or deferred income tax liabilities are calculated and recognized according to the applicable tax rate during the period when the assets are expected to be recovered or the liabilities are settled. 2. The recognition of deferred income tax assets is limited to the taxable income that is likely to be obtained to offset the deductible temporary differences.On the balance sheet date if there is conclusive evidence that sufficient taxable income is likely to be obtained in the future to offset the deductible temporary differences the deferred income tax assets not recognized in the previous accounting periods shall be recognized. 3. On the balance sheet date the book value of deferred income tax assets shall be reviewed. If it is likely that sufficient taxable income will not be available to offset the benefits of deferred income tax assets in the future the book value of deferred income tax assets shall be written down.When it is likely to obtain sufficient taxable income the amount written down will be reversed. 4. The current income tax and deferred income tax of the company are included in the current profit and loss as income tax expenses or income but do not include the income tax arising from the following circumstances: (1) business merger; (2) Transactions or events directly recognized in owner's equity. 5. When the following conditions are met at the same time the company will list the deferred income tax assets and deferred income tax liabilities at the net amount after offset: (1) it has the legal right to settle the current income tax assets and current income tax liabilities at the net amount; (2) Deferred income tax assets and deferred income tax liabilities are related to the income tax levied by the same tax collection and management department on the same taxpayer or on different taxpayers but in the future during the period when each important deferred income tax asset and deferred income tax liability are reversed the taxpayers involved intend to settle the current income tax assets and current income tax liabilities at a net amount or obtain assets and settle debts at the same time. （30） Leasing 1. The company as tenant On the beginning date of the lease term the company recognizes the lease with a lease term of no more than 12 months and no purchase option as a short-term lease;Leases with lower value when a single leased asset is a new asset are recognized as low value asset leases. If the company sublets or expects to sublet the leased assets the original lease is not recognized as a low value asset lease.For all short-term leases and low-value asset leases the company includes the amount of 1172025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. lease payments in the cost of related assets or current profit and loss on a straight line basis during each period of the lease term.In addition to the above-mentioned short-term leases and low-value asset leases with simplified treatment the company recognizes the right to use assets and lease liabilities for the lease on the beginning date of the lease term. (1) Right of use assets The right to use assets are initially measured at cost which includes: 1) the initial measurement amount of lease liabilities; 2) For the lease payment paid on or before the beginning date of the lease term if there is a lease incentive the relevant amount of the lease incentive that has been enjoyed shall be deducted; 3) Initial direct costs incurred by the tenant; 4) The cost expected to be incurred by the lessee for the demolition and removal of the leased assets the restoration of the premises where the leased assets are located or the restoration of the leased assets to the agreed state of the lease terms.The company depreciates the right to use assets according to the straight line method.If it can be reasonably determined that the ownership of the leased assets will be obtained at the expiration of the lease term the company shall make depreciation within the remaining service life of the leased assets.If it is impossible to reasonably determine that the ownership of the leased assets can be obtained at the expiration of the lease term the company shall make depreciation within the shorter of the lease term and the remaining service life of the leased assets. (2) Lease liabilities On the beginning date of the lease term the company recognizes the present value of the unpaid lease payment as a lease liability.When calculating the present value of the lease payment the embedded interest rate of the lease shall be used as the discount rate. If the embedded interest rate of the lease cannot be determined the incremental borrowing rate of the company shall be used as the discount rate. The difference between the lease payment and its present value shall be regarded as unrecognized financing expenses and the interest expenses shall be recognized at the discount rate of the present value of the lease payment during each period of the lease term and included in the current profit and loss. The amount of variable lease payments not included in the measurement of lease liabilities is included in the current profit and loss when actually incurred.After the beginning date of the lease term when the substantial fixed payment changes the estimated amount payable of the guarantee residual value changes the index or ratio used to determine the lease payment changes the evaluation results or actual exercise of the purchase option renewal option or termination option changes the company remeasures the lease liabilities according to the present value of the changed lease payment and adjusts the book value of the right of use assets accordingly. If the book value of the right of use assets has been reduced to zero but the lease liabilities still need to be further reduced the remaining amount shall be included in the current profit and loss. 2. The company as lessor On the lease beginning date the company classifies leases that substantially transfer almost all the risks and rewards related to the ownership of the leased assets as financial leases except for operating leases. (1) Operating leases During each period of the lease term the company recognizes the lease receipts as rental income according to the straight line method and the initial direct expenses incurred are 1182025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. capitalized and apportioned on the same basis as the recognition of rental income which are included in the current profit and loss by stages.The variable lease payments obtained by the company related to operating leases that are not included in the lease receipts are included in the current profit and loss when actually incurred. (2) Finance lease On the beginning date of the lease term the company recognizes the financing lease receivables according to the net amount of the lease investment (the sum of the unsecured residual value and the present value of the lease receipts not yet received on the beginning date of the lease term discounted at the embedded interest rate of the lease) and terminates the recognition of the financing lease assets.During each period of the lease term the company calculates and recognizes interest income according to the interest rate embedded in the lease.The amount of variable lease payments obtained by the company that are not included in the measurement of net lease investment shall be included in the current profit and loss when actually incurred. （31） Changes in significant accounting policies and accounting estimates 1. Changes in significant accounting policies During the reporting period the company did not change any important accounting policies. 2 changes in important accounting estimates During the reporting period the company did not change important accounting estimates. 4、 Taxes （1）Main taxes and tax rates Taxes Tax basis Tax rate The output tax shall be calculated on the basis of the income from the sale of goods and taxable services calculated in accordance with value added tax the provisions of the tax law. After deducting 9% 6% 5% 3% the input tax allowed to be deducted in the current period the difference shall be the value-added tax payable Calculated and Value-added amount arising from the transfer of paid according to Land value-added state-owned land use rights and property rights of the excessive tax aboveground buildings and other attached objects progressive tax rate with compensation of value-added amount In case of ad valorem collection 1.2% of the Property taxes residual value of the original value of the propertyafter deducting 30% at a time;If it is levied from 1.2% 12% rent it shall be paid at 12% of the rental income Urban maintenance and construction Turnover tax actually paid 7% tax Education surcharge Turnover tax actually paid 3% Local education surcharge Turnover tax actually paid 2% Corporate income tax Taxable income 25% 20% 16.5% 1192025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Explanation of enterprise income tax rate of taxpayers with different tax rates Name of taxpayer Income tax rate Shenzhen huazhan Construction Supervision Co. Ltd. and Shantou Special Economic Zone Songshan Real Estate Development 20% Co. Ltd Subsidiaries incorporated in Hong Kong 16.5% Other taxpayers other than the above 25% （2） Tax breaks According to the announcement of the General Administration of Taxation of the Ministry of Finance on preferential income tax policies for small and micro enterprises and individual businesses (announcement No.12 of the General Administration of Taxation of the Ministry of Finance in 2023) the part of the annual taxable income of small and micro profit enterprises that does not exceed 1 million yuan shall be included in the taxable income at a reduced rate of 25% and the enterprise income tax shall be paid at a tax rate of 20%.The implementation period is from January 1 2023 to December 31 2027. The enterprise income tax rate of Shenzhen huazhan Construction Supervision Co. Ltd. (hereinafter referred to as huazhan supervision) and Shantou Special Economic Zone Songshan Real Estate Development Co. Ltd. (hereinafter referred to as Shantou Songshan) subsidiaries of the company shall be subject to the preferential tax rate of 20% for small and low profit enterprises. 5、 Notes to consolidated financial statement items （1） Notes to consolidated balance sheet items 1. Monetary funds (1) Details Projects Closing balance Beginning balance Cash on hand 19892.83 38975.98 bank deposit 284666632.21 526814068.83 Other monetary funds 2389680.55 Total 284686525.04 529242725.36 Including: total amount deposited abroad 4242440.12 4660706.04 (2) Other instructions As of December 31 2025 the restricted funds in bank deposits were 5794604.17 yuan of which 5674439.78 yuan was the deposit for the construction of public facilities projects in and around the urban renewal project in Longgang District Shenzhen 70010.20 yuan was the suspension of accounts and payments and 50154.19 yuan was the deposit for projects. 2. Trading financial assets Projects Closing balance Beginning balance 1202025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Projects Closing balance Beginning balance Financial assets classified as at fair value through profit or loss 1050256058.41 987801938.51 Among them: Fund 1050256058.41 987801938.51 Total 1050256058.41 987801938.51 3. Notes receivable (1) Details Projects Closing balance Beginning balance Bank acceptance bill Commercial acceptance bill 100000.00 Total 100000.00 (2) Provision for bad debts Closing balance Book balance Bad debt provision Types money Proportion Provision book value (%) money Proportion(%) Provision for bad debts by portfolio Including: bank acceptance bill Commercial acceptance bill Total 4. Accounts receivable (1) Aging Aging Closing balance Beginning balance Within 1 year 35522470.19 46635449.13 1-2 years 11264782.88 17841452.58 2-3 years 5972759.94 8345221.16 3-4 years 8220946.54 5644029.79 4-5 years 5252795.41 46903.69 More than 5 years 21125636.89 21078733.20 Total 87359391.85 99591789.55 Less: bad debt provision 42461308.11 42918994.03 1212025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Aging Closing balance Beginning balance Total book value 44898083.74 56672795.52 (2) Provision for bad debts 1) Category breakdown Closing balance Book balance Bad debt provision Types Proportion Provision book valueAmount (%) money Proportion(%) Single provision for bad debts 24613872.70 28.18 24613872.70 100.00 Provision for bad debts by portfolio 62745519.15 71.82 17847435.41 28.44 44898083.74 Total 87359391.85 100.00 42461308.11 48.61 44898083.74 (Continued) Beginning balance Book balance Bad debt provision Types Provision book value money Proportion(%) money Proportion(%) Single provision for bad debts 24983383.25 25.09 24983383.25 100.00 Provision for bad debts by portfolio 74608406.30 74.91 17935610.78 24.04 56672795.52 Total 99591789.55 100.00 42918994.03 43.09 56672795.52 2) Important accounts receivable with single provision for bad debts Company Beginning balance Closing balance name Book balance Bad debt Bad debt Provision Basis ofprovision Book balance provision ratio (%) provision Agent import Not and export business 11574556.00 11574556.00 11574556.00 11574556.00 100.00 expected to be payment recovered Long term Not uncollected 10084109.60 10084109.60 10084109.60 10084109.60 100.00 expected house sales to berecovered Accounts Not receivable of subsidiaries 2314755.46 2314755.46 2314755.46 2314755.46 100.00 expected to be suspended recovered Other Not customer 1009962.19 1009962.19 640451.64 640451.64 100.00 expected payments to berecovered Sub total 24983383.25 24983383.25 24613872.70 24613872.70 100.00 3) Accounts receivable with portfolio provision for bad debts Closing balance Projects Book balance Bad debt provision Provision ratio (%) Receivables from other customer 62745519.15 17847435.41 28.44 1222025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Closing balance Projects Book balance Bad debt provision Provision ratio (%) portfolios Sub total 62745519.15 17847435.41 28.44 4) Changes in bad debt reserves Projects Beginning Current change amount balance Withdrawal Write Closing balanceProvision or reversal off other Single provision for 24983383.25 369510.55 24613872.70 bad debts Provision for bad debts by 17935610.78 88175.37 17847435.41 portfolio Total 457685.92 42918994.0342461308.11 (4) Top 5 accounts receivable and contract assets Proportion Closing balance in the total Provision forbalance of bad debts of accounts accounts Company name receivable receivable and Accounts and contract provision for receivable Contract assets Sub total assets at the impairment ofend of the contract assets period (%) Shenzhen Hongteng Investment Management Co. Ltd 11789376.23 837624.28 12627000.51 10.52 12627000.51 Shenzhen Guangming construction engineering No. 1 Construction Engineering Co. Ltd 1544468.13 7733431.57 9277899.70 7.73 662029.13 Shenzhen Construction Engineering Group Co. Ltd 5974806.41 2980784.42 8955590.83 7.46 1409486.39 Jiangsu Huajian Construction Co. Ltd.Shenzhen Branch 4308688.79 3624467.86 7933156.65 6.61 354132.67 Shenzhen Zhaoyang Real Estate Co. Ltd 7650272.25 7650272.25 6.38 229508.17 Total 31267611.81 15176308.13 46443919.94 38.71 15282156.86 (5) Other instructions As of December 31 2025 the factoring balance of accounts receivable transferred but not derecognized was 7379890.15 yuan. 5. Advance payment (1) Aging 1232025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Closing balance Beginning balance Provis Prov Aging ision Book balance Proportio ion n (%) for book value Book balance Proporti for book value impair on (%) impa ment irment Within 1 year 30809.83 97.54 30809.83 1100322.58 91.61 1100322.58 1-2 years 1159.00 0.10 1159.00 2-3 years More than 3 years 778.62 2.46 778.62 99624.63 8.29 99624.63 Total 31588.45 100.00 31588.45 1201106.21 100.00 1201106.21 (2) Top 5 prepayments Prepayment Company name Book balance Proportion of balance (%) China Telecom Corporation Limited Shenzhen Branch 19679.83 62.30 Guangdong Jianye Testing and Identification Co. Ltd 11130.00 35.23 Shenzhen Shenlv International Tourism Development Co.Ltd 228.62 0.72 Other 550.00 1.74 Sub total 31588.45 100.00 6. Other receivables (1) Nature and classification of payments Nature of payment Closing balance Beginning balance Portfolio of receivables from related parties 850579354.54 161393309.25 Portfolio of receivables from government departments 165460.00 3019837.72 Employee reserve portfolio receivable 112443.24 533912.40 Collection and payment portfolio receivable 596591.68 787071.98 Other receivables portfolio 193464111.43 37783095.18 Total 1044917960.89 203517226.53 Less: bad debt provision 297017469.37 196079185.70 Total book value 747900491.52 7438040.83 (2) Aging Aging Closing balance Beginning balance Within 1 year 6291824.79 4132917.44 1242025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Aging Closing balance Beginning balance 1-2 years 21982715.53 1542936.54 2-3 years 5885948.43 12060828.62 3-4 years 3267.40 4-5 years More than 5 years 1010754204.74 185780543.93 Total 1044917960.89 203517226.53 Less: bad debt provision 297017469.37 196079185.70 Total book value 747900491.52 7438040.83 (3) Provision for bad debts 1) Category breakdown Closing balance Book balance Bad debt provision Types Proportion Provision book valuemoney (%) money Proportion(%) Single provision for bad debts 1037381783.48 99.28 296662485.14 28.60 740719298.34 Provision for bad debts by portfolio 7536177.41 0.72 354984.23 4.71 7181193.18 Sub total 1044917960.89 100.00 297017469.37 28.42 747900491.52 (Continued) Beginning balance Book balance Bad debt provision Types money Proportion Provision book value (%) money Proportion(%) Single provision for bad debts 190176205.84 93.44 189807225.64 99.81 368980.20 Provision for bad debts by portfolio 13341020.69 6.56 6271960.06 47.01 7069060.63 Sub total 203517226.53 100 196079185.70 96.35 7438040.83 2) Other receivables with important single provision for bad debts Company Beginning balance Closing balance name Book balance Bad debt Book balance Bad debt Provision Basis ofprovision provision ratio (%) provision Guangdong Jianbang group (Huiyang) Not Industrial Co. expected Ltd. 843296961.67 102965447.05 12.21 to be (hereinafter recovered referred to as Jianbang company) 1252025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Company Beginning balance Closing balance name Book balance Bad debt Bad debt Provision Basis ofprovision Book balance provision ratio (%) provision Great Wall Not (Vancouver) 89035748.07 89035748.07 89035748.07 89035748.07 100.00 expected Inc to berecovered Not Baili Co. Ltd 19393335.84 19393335.84 19363348.69 19363348.69 100.00 expectedto be recovered Burkton Not Australia 12559290.58 12559290.58 12559290.58 12559290.58 100.00 expected Limited to berecovered Guangdong Huizhou Not Luofushan mineral water 10465168.81 10465168.81 10465168.81 10465168.81 100.00 expected to be beverage Co. recovered Ltd Xi'an Xinfeng Not Property Trading Co. 8419205.19 8419205.19 8391333.18 8391333.18 100.00 expected to be Ltd recovered Shenzhen Shenxi Not building 7660529.37 7660529.37 7660529.37 7660529.37 100.00 expected decoration to be company recovered Beijing Shenfang Not Property 6905673.69 6533817.09 6905673.69 6533817.09 94.62 expected Management to be Co. Ltd recovered Not Baoan mall 6343030.65 6343030.65 6343030.65 6343030.65 100.00 expectedto be recovered Shenzhen Not Nanyang 3168721.00 3168721.00 3168721.00 3168721.00 100.00 expected Hotel Co. Ltd to berecovered Shenzhen Not Runhua Auto Trading 3072764.42 3072764.42 3072764.42 3072764.42 100.00 expected to be Company recovered Shenzhen Not local building materials 3000000.00 3000000.00 3000000.00 3000000.00 100.00 expected to be company recovered Not Junxinhe 2800000.00 2800000.00 2800000.00 2800000.00 100.00 expectedto be recovered Harbin Power District Xinle Not feed 1970000.00 1970000.00 1970000.00 1970000.00 100.00 expected processing to be factory recovered Not Simo 1868735.45 1868735.45 1868735.45 1868735.45 100.00 expectedto be recovered 1262025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Company Beginning balance Closing balance name Book balance Bad debtprovision Book balance Bad debt Provision Basis of provision ratio (%) provision Sub total 176662203.07 176290346.47 1019901305.58 279197934.36 27.37 3) Other receivables with portfolio provision for bad debts Closing balance Portfolio name Book balance Bad debt provision Provision ratio (%) Portfolio of receivables from related parties 854095.27 Portfolio of receivables from government 165460.00 departments Employee reserve portfolio receivable 615652.06 Collection and payment portfolio receivable 1487672.34 72605.97 4.88 Other receivables portfolio 4413297.74 282378.26 6.40 Sub total 7536177.41 354984.23 4.71 (4) Changes in bad debt reserves Stage 1. Stage 2. Stage 3.Expected credit Projects Next 12 months Expected credit loss for the Total Expected credit loss for the whole whole duration loss duration (no credit (creditimpairment) impairment has occurred) Beginning balance 209559.52 857709.31 195011916.87 196079185.70 Beginning balance in current period —— —— —— --Move to phase 2 --Move to phase 3 --Back to phase 2 --Back to phase 1 Current provision 101818165.64 101818165.64 Recovered or reversed in the 55149.32 489460.51 544609.83 current period Current write off Other changes -335272.14 -335272.14 Closing balance 154410.20 32976.66 296830082.51 297017469.37 Provision ratio for bad debt reserves at the end of the 2.45 2.65 28.61 28.42 period (%) 1272025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. (5) Top 5 other receivables Proporti Book balance at on inCompany Nature of the end of the Aging balance Bad debt name payment period of other provision at the receivabl end of the period es (%) Within 1 year years Jianbang Related party 2-3current account 843296961.67 years 80.70 102965447.05 and more than 5 years Great Wall Related party More (Vancouver) Inc current account 89035748.07 than 5 8.52 89035748.07years More Baili Co. Ltd Related partycurrent account 19363348.69 than 5 1.85 19363348.69years Burkton More Australia Related partycurrent account 12559290.58 than 5 1.20 12559290.58Limited years Guangdong Huizhou Luofushan Related party More mineral water current account 10465168.81 than 5 1.00 10465168.81 beverage Co. years Ltd Sub total 974720517.82 93.28 234389003.20 7. Inventory (1) Details Project Closing balance Beginning balance s Book balance Depreciationreserve book value Book balance Depreciation reserve book value developm ent cost 28291908.11 28291908.11 2276063206.65 711787110.18 1564276096.47 Develop products 1125583917.83 54580338.25 1071003579.58 2127137511.58 54807711.11 2072329800.47 Inventory 103023.47 38891.91 64131.56 273224.31 38891.91 234332.40 Total 1153978849.41 54619230.16 1099359619.25 4403473942.54 766633713.20 3636840229.34 (2) Inventory depreciation reserve 1) Details Increase in current period Decrease in current period Closing balanceProjects Beginning balance Provis Reversal or ion other write off Others [note] development cost 711787110.18 711787110.18 1282025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Increase in current period Decrease in current period Closing balanceProjects Beginning balance Provis other Reversal orion write off Others [note] Develop products 54807711.11 227372.86 54580338.25 Inventory 38891.91 38891.91 Total 766633713.20 227372.86 711787110.18 54619230.16 [note] Jianbang company was taken over by the bankruptcy administrator for bankruptcy liquidation on November 30 2025 and will no longer be included in the scope of consolidation from November 30 2025. The provision for inventory depreciation will decrease with the release of Jianbang company. 2) The specific basis for determining the net realisable value and the reasons for the reversal or write off of inventory depreciation reserves in the current period Reversal of Determining net realisable value inventory Write off inventory Projects Specific basis depreciation depreciation Reasons for Reasons for preparation preparation The net realizable The estimated selling price of value of inventory Inventory development inventory minus the estimated with provision for consumption/sale with cost cost to be incurred at completion inventory provision forthe estimated selling expenses depreciation in inventory depreciation and related taxes previous periods in the current period increased The net realisable value is The net realizable determined by the amount of the value of inventory Inventory Develop estimated selling price of the with provision for consumption/sale with products relevant developed products inventory provision forminus the product cost the depreciation in inventory depreciation estimated selling expenses and previous periods in the current period the relevant taxes and fees increased The net realisable value is The net realizable determined by the amount of the value of inventory Inventory estimated selling price of the with provision for consumption/sale with Inventory relevant inventory goods minus inventory provision for the cost of the products the depreciation in inventory depreciation estimated selling expenses and previous periods in the current period the relevant taxes and fees increased (3) Capitalization of borrowing costs Included in closing balance Interest Calculation standard and Projects Capitalization amount of capitalization rate basis of capitalization borrowing costs (%) amount Guangming Calculated according to the Li 2206417.88 4.06 interest rate stipulated in theloan contract Sub total 2206417.88 4.06 (4) Other instructions 1) Inventory development costs entry name Start Estimat Estimated Beginning balance Closing balance Provision for time ed time total depreciation at the 1292025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. for investment end of the period complet (10000 ion yuan) Lin Xinyuan 2021 300000.00 2247771298.55 Shantou Xinfeng 28291908.10 28291908.11 tower Sub total 300000.00 2276063206.65 28291908.11 2) Inventory - develop products entry name Time for Beginning Increase in current Decrease in current Closing balance Closing decline completio balance period period Price reserve n Guangming Li 2024 1432471630.58 3603133.08 971685098.89 464389664.77 Tianyuewan 28917964.91 phase II 2021 441400625.10 1979410.15 29915421.77 413464613.48 Tianyuewan phase I 2017 191139379.80 6426489.82 184712889.98 24890553.23 Golden Leaf Island Haitian 1997 39999534.04 960.31 40000494.35 771820.11 Pavilion Tsui Lam Yuen 2018 7696703.10 816399.26 8513102.36 Yue King Oriental 2014 6121027.07 6121027.07 Golden Leaf Island phase 10 2010 5641278.54 57279.71 5698558.25 Golden Leaf Island phase 11 2008 2222776.30 16234.22 2239010.52 Beijing Xinfeng tower 304557.05 304557.05 Whampoa Estate 140000.00140000.00 Sub total 2127137511.58 6473416.73 1008027010.48 1125583917.83 54580338.25 8. Contract assets (1) Details Closing balance Beginning balance Projects Book balance Provision forimpairment book value Book balance Provision for impairment book value Completed and unsettled 32613380.97 3578124.69 29035256.28 32059525.05 1170801.96 30888723.09 project funds Total 32613380.97 3578124.69 29035256.28 32059525.05 1170801.96 30888723.09 (2) Provision for impairment Closing balance Book balance Provision for impairment Types Proportion Provision book valuemoney (%) money Proportion(%) 1302025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Provision for impairment by portfolio 32613380.97 100.00 3578124.69 10.97 29035256.28 Total 32613380.97 100.00 3578124.69 10.97 29035256.28 1) Category breakdown (Continued) Beginning balance Book balance Provision for impairment Types Proportion Provision book valuemoney (%) money Proportion(%) Provision for impairment by portfolio 32059525.05 100.00 1170801.96 3.65 30888723.09 Total 32059525.05 100.00 1170801.96 3.65 30888723.09 2) Contract assets with portfolio provision for impairment Closing balance Projects Book balance Provision forimpairment Provision ratio (%) Construction mix 32613380.97 3578124.69 10.97 Sub total 32613380.97 3578124.69 10.97 (3) Changes in provision for impairment Projects Beginning Current change amount Closing balance Provision Withdrawal balanceor reversal Write off other Provision for impairment 1170801.96 2407322.73 3578124.69 by portfolio Total 1170801.96 2407322.73 3578124.69 9. Other current assets (1) Details Closing balance Beginning balance Impa Projects Impai irme Book balance rment book value Book balance nt book value ready read y Prepaid income tax 1310041.90 1310041.90 63654695.18 63654695.18 VAT prepaid 35023855.49 35023855.49 41955887.75 41955887.75 Advance land value- added tax 27906656.73 27906656.73 28100310.83 28100310.83 Input tax to be deducted 407250.18 407250.18 9375930.68 9375930.68 Contract acquisition cost 6508438.39 6508438.39 Advance urban construction tax and 1431668.71 1431668.71 4587785.46 4587785.46 surcharges 1312025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Closing balance Beginning balance Impa Projects Impai irme Book balance rment book value Book balance nt book value ready read y other 53992.23 53992.23 8975.57 8975.57 Total 66133465.24 66133465.24 154192023.86 154192023.86 (2) Contract acquisition cost Provision for Projects Beginning Increase in Current write impairment in Closingbalance current period off the current balance period Guangming Li 5110543.39 5110543.39 Lin Xinyuan 1397895.00 1397895.00 Sub total 6508438.39 6508438.39 10. Long-term equity investments (1) Classification Closing balance Beginning balance Projects Book balance Provision for Bookimpairment value Book balance Provision for Book impairment value Investments in joint ventures 19424671.47 19424671.47 19424671.47 19424671.47 Investments in associates 32898465.09 32898465.09 32898465.09 32898465.09 Other equity investments 167761564.39 167761564.39 167761564.39 167761564.39 Total 220084700.95 220084700.95 220084700.95 220084700.95 (2) Details Beginning balance Increase and decrease in the current period Investment gains and Other Investee Book Provision for Additional Reduce losses comprehensive value impairment investments investment recognized Earnings under the adjustment equity method Joint venture Guangdong Huizhou Luofushan mineral water 9969206.09 beverage Co. Ltd Fengkai Xinghua Hotel 9455465.38 Sub total 19424671.47 Associates Shenzhen ronghua Electromechanical 1076954.64 1322025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Beginning balance Increase and decrease in the current period Investment gains and Other Investee Book Provision for Additional Reduce losses comprehensive value impairment investments investment recognized Earnings under the adjustment equity method Engineering Co.Ltd Shenzhen Runhua Auto Trading 1445425.56 Company Dongyi Real Estate Co. Ltd 30376084.89 Sub total 32898465.09 Other equity investments Baili Co. Ltd 201100.00 Burkton Australia 906630.00 Shenzhen shenfang Department Store 10000000.00 Co. Ltd Shantou Xinfeng tower 58547652.25 Guangdong Fengkai Lianfeng cement 56042236.04 manufacturing Co.Ltd Jiangmen Xinjiang Real Estate Co. Ltd 9037070.89 Xi'an Xinfeng Property Trading 32840729.61 Co. Ltd Sub total 167761564.39 Total 220084700.95 (Continued) Increase and decrease in the current period Closing balance Declaration Investee Other equity of cash Provision for Provision for changes dividends impairment Other Book value impairment or profits Joint venture Guangdong Huizhou Luofushan 9969206.09 mineral water beverage Co. Ltd Fengkai Xinghua Hotel 9455465.38 Sub total 19424671.47 Associates 1332025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Increase and decrease in the current period Closing balance Declaration Investee Other equity of cash Provision for Other Book value Provision forchanges dividends impairment impairment or profits Shenzhen ronghua Electromechanical Engineering Co. 1076954.64 Ltd Shenzhen Runhua Auto Trading 1445425.56 Company Dongyi Real Estate Co. Ltd 30376084.89 Sub total 32898465.09 Other equity investments Baili Co. Ltd 201100.00 Burkton Australia 906630.00 Shenzhen shenfang Department Store 10000000.00 Co. Ltd Shantou Xinfeng tower 58547652.25 Guangdong Fengkai Lianfeng cement 56228381.64 manufacturing Co. Ltd Jiangmen Xinjiang Real 9037070.89 Estate Co. Ltd Xi'an Xinfeng Property Trading 32840729.61 Co. Ltd Sub total 167761564.39 Total 220084700.95 [note] in other equity investments the equity of subsidiaries not included in the scope of consolidation of the company is accounted for. This subsidiary may have completed the revocation procedures but the company has not written off its long-term equity investment or stopped operating many years ago and the company has no entity so the company has been unable to effectively control it.See Note 6 for details 11. Investment in other equity instruments Increase and decrease in the current period Gains and losses Projects Beginningbalance Additional Reduce included in other investments investment comprehensive otherincome in the current period Shantou small and 14697341.18 -125829.37 1342025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Increase and decrease in the current period Gains and losses Projects Beginningbalance Additional Reduce included in other investments investment comprehensive otherincome in the current period medium- sized enterprise financing guarantee Co. Ltd Total 14697341.18 -125829.37 (Continued) Dividend income Gains and losses included in Projects Closing balance recognized in other comprehensive income at the current the end of the period period Shantou small and medium-sized enterprise financing 14571511.81 778495.00 6282876.24 guarantee Co. Ltd Total 14571511.81 778495.00 6282876.24 12. Investment properties Projects Houses andbuildings land use right Total Book value Beginning balance 1042937072.97 110807339.45 1153744412.42 Increase in current period 33326036.91 33326036.91 1) Outsourcing 2) Inventory transfer in 33326036.91 33326036.91 Decrease in current period 1677368.76 2467728.73 4145097.49 1) Disposal 99150.45 99150.45 2) Other (exchange rate changes) 1578218.31 2467728.73 4045947.04 Closing balance 1074585741.12 108339610.72 1182925351.84 Accumulated depreciation and amortization Beginning balance 532826612.47 532826612.47 Increase in current period 25664684.19 25664684.19 1352025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Projects Houses andbuildings land use right Total 1) Provision or amortization 25664684.19 25664684.19 2) Other (exchange rate changes) Decrease in current period 1167907.29 1167907.29 1) Disposal 90316.76 90316.76 2) Other (exchange rate changes) 1077590.53 1077590.53 Closing balance 557323389.37 557323389.37 Provision for impairment Beginning balance 14047929.59 90944753.82 104992683.41 Increase in current period 1) Provision Decrease in current period 2025380.11 2025380.11 1) Disposal 2) Other (exchange rate changes) 2025380.11 2025380.11 Closing balance 14047929.59 88919373.71 102967303.30 book value Closing book value 503214422.16 19420237.01 522634659.17 Beginning book value 496062530.91 19862585.63 515925116.54 13. Fixed assets Projects Houses and buildings Transport equipment Electronics andothers Total Book value Beginning balance 99967911.10 7491729.61 8345607.75 115805248.46 Increase in current period - 572220.99 572220.99 1) Purchase 572220.99 572220.99 2) Other increases Decrease in current period 332006.34 337241.00 463752.98 1133000.32 1) Disposal or scrapping 332006.34 337241.00 176879.56 846126.90 2) Other decrease 286873.42 286873.42 1362025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Projects Houses and buildings Transport equipment Electronics andothers Total Closing balance 99635904.76 7154488.61 8454075.76 115244469.13 Accumulated depreciation Beginning balance 85851256.18 6053367.82 6411416.89 98316040.89 Increase in current period 2141291.07 236905.80 478314.57 2856511.44 1) Provision 2141291.07 236905.80 478314.57 2856511.44 2) Other increases Decrease in current period 179611.33 303516.90 394855.42 877983.65 1) Disposal or scrapping 179611.33 303516.90 169117.89 652246.12 2) Other decrease 225737.53 225737.53 Closing balance 87812935.92 5986756.72 6494876.04 100294568.68 Provision for impairment Beginning balance Increase in current period 1) Provision 2) Other increases Decrease in current period 1) Disposal or scrapping 2) Other decrease Closing balance book value Book value at the end of the period 11822968.84 1167731.89 1959199.72 14949900.45 Beginning book value 14116654.92 1438361.79 1934190.86 17489207.57 14. Construction in progress (1) Details Closing balance Project name Book balance Provision forimpairment book value Restoration and renovation of shenfang Plaza Heliport 398222.67 398222.67 Renovation project of atrium elevator in shenfang Plaza podium 173600.00 173600.00 1372025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Closing balance Project name Book balance Provision forimpairment book value Total 571822.67 571822.67 (2) Increase and decrease of construction in progress Increase in Current Other Project name Beginningbalance current transfer in decrease in Closing period fixed assets the current balanceperiod Restoration and renovation of shenfang Plaza 398222.67 398222.67 Heliport Renovation project of atrium elevator in shenfang Plaza 173600.00 173600.00 podium Total 571822.67 571822.67 15. Intangible assets Projects software Total Book value Beginning balance 2192000.00 2192000.00 Increase in current period 1) Purchase Decrease in current period 1) Disposal Closing balance 2192000.00 2192000.00 Accumulated amortization Beginning balance 2192000.00 2192000.00 Increase in current period 1) Provision Decrease in current period 1) Disposal Closing balance 2192000.00 2192000.00 Provision for impairment Beginning balance 1382025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Projects software Total Increase in current period 1) Provision Decrease in current period 1) Disposal Closing balance book value Book value at the end of the period Beginning book value 16. Long term deferred expenses Projects Beginning Increase in balance current Current Other Closing period amortization decrease balance Renovation fee 1578307.83 761576.34 724200.25 1615683.92 Others 141603.89 59001.60 82602.29 Total 1719911.72 761576.34 783201.85 82602.29 1615683.92 17. Deferred income tax assets and deferred income tax liabilities (1) Deferred income tax assets not offset Closing balance Beginning balance Projects Deductible Deductible Deferred Temporary Deferred differences Income tax assets Temporary Income tax differences assets Provision for impairment of 17373070.56 4343267.64 17887164.32 4471791.08 assets Deductible loss 9058968.76 2264742.19 34153954.30 8538488.58 Unrealized profit from internal 78405738.36 19601434.58 transactions Estimated contract cost 3839130.81 959782.70 Total 26432039.32 6608009.83 134285987.79 33571496.94 (2) Deferred income tax liabilities not offset Closing balance Beginning balance Projects Taxable Deferred Taxable Deferred Temporary Income tax Temporary Income tax differences liabilities differences liabilities 1392025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Closing balance Beginning balance Projects Taxable Deferred Taxable Deferred Temporary Income tax Temporary Income tax differences liabilities differences liabilities Interest not due 2778907.00 694726.75 2340498.77 585124.68 Changes in fair value of investments in other equity 2571511.84 642877.96 2697341.18 674335.30 instruments Total 5350418.84 1337604.71 5037839.95 1259459.98 (3) Deferred income tax assets or liabilities presented at net amount after offset Closing balance Beginning balance Offset of After offset Offset of After offset Projects deferred income Balance of deferred income Balance of tax assets and deferred income tax assets and deferred income liabilities tax assets or liabilities tax assets or liabilities liabilities deferred tax assets 469690.21 6138319.62 33571496.94 Deferred Tax Liability 469690.21 867914.50 1259459.98 (4) Details of unrecognized deferred income tax assets Projects Closing balance Beginning balance deductible temporary differences 1176975484.48 1313992914.93 Deductible loss 142018237.92 94399508.95 Total 1318993722.40 1408392423.88 (5) The deductible loss of unrecognized deferred income tax assets will expire in the following year Year Closing balance Beginning balance Note 20251629.25 2026346891.06346891.06 202748904614.3848904614.38 202818354716.2418354716.24 202924953841.5126791658.02 203049458174.73 Total 142018237.92 94399508.95 18. Assets with restricted ownership or use rights (1) Asset constraints at the end of the period Book balance at Projects the end of the Book value at the limited period end of the period type Reasons for restrictions 1402025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Book balance at Projects the end of the Book value at the limitedend of the period type Reasons for restrictionsperiod Public facilities projects in and around the urban Monetary 5674439.78 5674439.78 Seizure renewal project infunds Longgang District Shenzhen - construction funds Monetary funds 50154.19 50154.19 Seizure Construction deposit Monetary 70010.20 70010.20 Seizure Stop payments stopfunds accounts Accounts receivable 7379890.15 7158493.45 pledge Pledge of short-term loans Total 13174494.32 12953097.62 (2) Restrictions on assets at the beginning of the period Projects Beginning book Beginning book limitedbalance value type Reasons for restrictions Construction funds for public facilities projects in and around the urban Monetary funds 5817217.78 5817217.78 Seizure renewal project inLonggang District Shenzhen;Land reclamation cost of Guangming Li project Monetary funds 2306548.48 2306548.48 freeze Litigation freeze Monetary funds 50155.58 50155.58 Seizure Construction deposit Monetary funds 158549.08 158549.08 Seizure Stop payments stopaccounts Accounts receivable 4918250.30 4770702.79 pledge Pledge of short-term loans Litigation inventory 234599800.76 161509611.70 preservati Supplier litigation on preservation Investment properties 137329055.83 38505029.10 mortgage Mortgage on borrowings Total 385179577.81 213117814.51 19. Short-term borrowings Projects Closing balance Beginning balance Accounts receivable factoring 50000.00 1563000.00 Total 50000.00 1563000.00 20. Accounts payable (1) Details 1412025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Projects Closing balance Beginning balance Procurement of engineering materials and construction 171738333.04 450147073.38 other 14341908.92 Total 171738333.04 464488982.30 (2) Important accounts payable with an account age of more than 1 year Projects Closing balance Reasons for outstanding orcarry over Shenzhen Guangming construction engineering No. 1 Construction 69727732.09 Unsettled Engineering Co. Ltd Shenzhen Municipal Engineering Corporation 16073112.33 Unsettled Sub total 85800844.42 21. Advance receipts Projects Closing balance Beginning balance rent 722042.14 1398988.78 Total 722042.14 1398988.78 22. Contractual liabilities (1) Details Projects Closing balance Beginning balance Advance receipts 15710437.24 1284864387.02 Advance payment 8115281.04 8705289.17 other 4574940.92 4576556.16 Total 28400659.20 1298146232.35 (2) Important contract liabilities with an account age of more than one year Projects Closing balance Reasons for notcarrying forward The handover of the Guangming Li 2525427.51 house with theowner has not been completed Total 2525427.51 (3) Collection of pre-sale real estate of important projects Residential entry name Closing balance Beginning Time forbalance completion signing ratio(%) Guangming Li 2525427.51 1270976624.80 End of 2024 99.74 1422025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Residential entry name Closing balance Beginning Time forbalance completion signing ratio(%) Sub total 2525427.51 1270976624.80 (4) Reasons for significant changes in the book value of contract liabilities during the current period Projects Change amount Reasons for change Guangming Li 1268451197.29 Guangming Li will complete the househandover to the owner in 2025 Sub total 1268451197.29 23. Payroll payable (1) Details Projects Beginning Increase in Decrease inbalance current period current period Closing balance Short-term compensation 22443222.88 65878356.82 58653769.62 29667810.08 Post employment benefits - defined 56145.41 7174258.36 7228564.97 1838.80 contribution plan termination benefits 3837029.46 749335.46 3087694.00 Total 22499368.29 76889644.64 66631670.05 32757342.88 (2) Details of short-term compensation Projects Beginning Increase in Decrease inbalance current period current period Closing balance Salaries bonuses allowances and 22165168.53 56498322.84 49113053.85 29550437.52 subsidies Employee benefits 3124994.52 3124994.52 Social insurance premiums 2500080.97 2500080.97 Including: medical insurance premium 2098667.34 2098667.34 Industrial injury insurance 205554.23 205554.23 Maternity insurance 194891.40 194891.40 Employment security for 968.00 968.00 the disabled housing fund 2232140.90 2232140.90 Labor union funds and employee education 278054.35 1411985.20 1572666.99 117372.56 funds Short-term paid absences 92125.08 92125.08 Other short-term compensation 18707.31 18707.31 1432025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Projects Beginning Increase in Decrease inbalance current period current period Closing balance Sub total 22443222.88 65878356.82 58653769.62 29667810.08 (3) Details of defined contribution plan Projects Beginning Increase in Decrease in Closingbalance current period current period balance Basic pension 6505753.23 6505753.23 Unemployment insurance premiums 354846.59 354846.59 Enterprise annuity payment 56145.41 313658.54 367965.15 1838.80 Sub total 56145.41 7174258.36 7228564.97 1838.80 24. Taxes payable Projects Closing balance Beginning balance value added tax 937306.31 1926338.10 Corporate income tax 16169391.23 15240318.16 Withholding and paying individual income tax 2139885.12 2614360.35 Urban maintenance and construction tax 1336686.83 1231330.83 Land value-added tax 4645184.15 4645184.15 Property taxes 537531.44 352632.19 Education surcharge 577466.85 868224.47 Local education surcharge 368675.16 546470.88 other 209955.49 129950.88 Total 26922082.58 27554810.01 25. Other accounts payable (1) Details Projects Closing balance Beginning balance Interest payable 16535277.94 16535277.94 Other accounts payable 127745131.22 544481375.23 Total 144280409.16 561016653.17 (2) Interest payable 1) Details Projects Closing balance Beginning balance 1442025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Projects Closing balance Beginning balance Interest on loans from non-financial institutions (interest payable to parent company) 16535277.94 16535277.94 Sub total 16535277.94 16535277.94 2) Important overdue interest payment Borrower Overdueamount Overdue reason Shenzhen Investment Holding Co.Ltd 16535277.94 Unpaid Sub total 16535277.94 (3) Other accounts payable Projects Closing balance Beginning balance Non related party current account 26581817.09 177773291.96 Related party transactions 9065673.97 234015438.99 deposit 23487225.44 25941548.11 other 68610414.72 106751096.17 Sub total 127745131.22 544481375.23 26. Non current liabilities due within one year Projects Closing balance Beginning balance Long-term loans due within one year 33888347.83 Total 33888347.83 27. Other current liabilities Projects Closing balance Beginning balance Tax on sales to be transferred 235112.72 114948818.17 Accounts receivable factoring 7329890.15 3355250.30 Total 7565002.87 118304068.47 28. Long-term borrowings Projects Closing balance Beginning balance Mortgages 96162025.65 Less: long-term loans due within one year 33888347.83 Total 62273677.82 1452025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. 29. Share capital Increase or decrease in the current period (decrease expressed by "-") Proje cts Beginning balance issue New Divide Provident oth Sub Closing balance share nd fundconversion er totals Total shares 1011660000.00 1011660000.00 30. Capital reserve Projects Beginning Increase in Decrease in Closingbalance current period current period balance Capital premium (equity premium) 557433036.93 557433036.93 Other capital reserve 420811873.18 420811873.18 Total 978244910.11 978244910.11 31. Other comprehensive income Current amount Net after tax of other comprehensive income Less: othercomprehensive income Less: included included in the in other previous Projects Beginning comprehensive period isbalance Amount income in the Less: Attributable Attributable transferred to Closing balance before income previous income to parent to minority retained tax in the period and tax company shareholders income in the current period transferred to expense after tax after tax current period profit and loss (attributable to in the current the parent period company after tax) Other comprehensive income that cannot be - reclassified into profit or 2439210.13 -125829.37 31457.34 -94372.03 2344838.10 loss Among them: re measurement of changes in defined benefit plans Other comprehensive income that cannot be transferred to profit or loss under the equity method Changes in fair value of investments in 2439210.13 -125829.37 -31457.34 -94372.03 2344838.10other equity instruments Changes in fair value of enterprise's own credit risk 1462025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Current amount Net after tax of other comprehensive income Less: othercomprehensive income Less: included included in the in other previous Projects Beginning comprehensive period isbalance Amount income in the Less: Attributable Attributable transferred to Closing balance before income previous income to parent to minority retained tax in the period and tax company shareholders income in the current period transferred to expense after tax after tax current period profit and loss (attributable to in the current the parent period company after tax) Other comprehensive income to be reclassified 20621206.18 1536756.74 349071.241187685.50 20970277.42 to profit or loss Among them: other comprehensive income convertible to profit or loss under equity method Changes in fair value of other creditor's rights investments Amount of reclassification of financial assets into other comprehensive income Provision for credit impairment of other creditor's rights investment Cash flow hedging reserve Translation difference of foreign currency 20621206.18 1536756.74 349071.241187685.50 20970277.42 financial statements Total other - comprehensive income 23060416.31 1410927.37 31457.34 254699.21 1187685.50 23315115.52 32. Surplus reserve Projects Beginning Increase in Decrease inbalance current period current period Closing balance Legal reserve 275253729.26 275253729.26 Total 275253729.26 275253729.26 33. Undistributed profit Projects Current period Same period lastyear Undistributed profit at the end of the previous period before adjustment 1223893437.74 1400604385.39 Adjust the total undistributed profit at the beginning of the period (increase+ decrease -) Undistributed profit at the beginning of the later period 1223893437.74 1400604385.39 1472025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Projects Current period Same period lastyear Plus: net profit attributable to owners of the parent company in the current period 99956003.75 -176710947.65 Less: withdrawal of statutory surplus reserve Common Stock dividends payable Undistributed profit at the end of the period 1323849441.49 1223893437.74 （2） Notes to consolidated income statement items 1. Operating income/operating cost (1) Details Current period Same period last year Projects income cost income cost Main business income 1475508650.42 1066407099.14 399806208.89 329523182.30 Other business income 7363648.94 3405345.60 7215982.55 2802468.00 Total 1482872299.36 1069812444.74 407022191.44 332325650.30 Among them: revenue from contracts with 1420214184.88 1028129256.31 337868729.90 290264756.49 customers (2) Revenue breakdown 1) Revenue from contracts with customers is broken down by type of goods or services Current period Same period last year Projects income cost income cost real estate 1324656290.59 937154626.27 162523053.49 127086267.87 engineering construction 81299490.77 82326326.57 160327744.72 154348805.43 other 14258403.52 8648303.47 15017931.69 8829683.19 Sub total 1420214184.88 1028129256.31 337868729.90 290264756.49 2) Revenue from contracts with customers is broken down by region of operation Current period Same period last year Projects income cost income cost Guangdong Province 1419516215.79 1028129256.31 337173047.00 290264756.49 United States 697969.09 695682.90 Sub total 1420214184.88 1028129256.31 337868729.90 290264756.49 3) Revenue from contracts with customers is broken down by the time goods or services are transferred Projects Current period Same period lastyear 1482025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Projects Current period Same period lastyear Revenue recognized at a certain point 1324656290.59 162523053.49 Revenue is recognized in a certain period of time 95557894.29 175345676.41 Sub total 1420214184.88 337868729.90 (3) Information on performance obligations Payments Types of The nature of assumed by quality Time for Important the goods the Is it the Projects payment company main the company assurance performance responsible that are provided byterms undertakes to person expected to be the companytransfer refunded to and related customers obligations After the contract is Selling When goods signed thecontract price Commercialgoods are delivered housing yes nothing Quality shall be assurance collected in advance When the general Engineering Provision of When service is construction services services are completed it property provided shall be management yes nothing nothing charged and other according to services the contract (4) The revenue recognized in the current period included in the book value of contract liabilities at the beginning of the period is 1277707691.77 yuan. 2. Taxes and surcharges Projects Current period Same period lastyear Land value-added tax 2493584.64 2714249.05 Property taxes 10144167.53 9956557.84 Urban maintenance and construction tax 3728882.75 1012893.50 Education surcharge 1583420.73 411819.81 Local education surcharge 1073716.28 274953.45 Land use tax 1004517.36 1120370.46 Stamp duty and other taxes 1851122.87 1250438.60 Total 21879412.16 16741282.71 3. Selling expenses Projects Current period Same period lastyear 1492025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Projects Current period Same period lastyear Sales agent fees and commissions 6225248.69 1863418.96 Employee compensation 5112278.69 3362219.19 Property management fee 3924137.90 3906657.98 cost of operation 192056.24 136489.27 Advertising fees 2815526.99 2488123.19 other 2505974.90 1407764.34 Total 20775223.41 13164672.93 4. Overhead Projects Current period Same period lastyear Employee compensation 59783269.03 48292124.93 Intermediary fees 3169937.43 6587170.53 Legal fees 834607.10 4504258.91 Business hospitality 114180.32 532812.45 Depreciation 2640488.36 3020894.71 Office expenses 739390.62 1634523.51 Repairs 147807.43 380818.94 Travel 40070.56 235772.33 Utilities 356140.75 395856.79 other 4679357.43 4534298.91 Total 72505249.03 70118532.01 5. Financial expenses Projects Current period Same period lastyear Interest expense 3760510.21 2586822.94 Less: interest income 3829111.01 7998718.28 Exchange gains and losses -1522796.04 -465656.39 Fees 371261.82 374804.61 Total -1220135.02 -5502747.12 1502025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. 6. Other income Amount included Same period in non recurringProjects Current period last year gains and lossesin the current period grants related to income 753298.54 Refund of handling fee for withholding individual income tax 31652.46 86280.28 VAT plus or minus 2627.57 Total 31652.46 842206.39 7. Investment income Projects Current period Same period lastyear Long-term equity investment income accounted for by equity method Investment income from disposal of long-term equity investment 136518.90 568863.59 Gains from loss of control -151858626.57 Investment income of trading financial assets during the holding period Dividend income from investment in other equity instruments during the holding period 778495.00 777600.00 Total -150943612.67 1346463.59 8. Income from changes in fair value Projects Current period Same period lastyear Trading financial assets 16621332.22 18461736.59 Among them: income from changes in fair value arising from financial assets designated to be measured at fair value and whose changes are 16621332.22 18461736.59 included in the current profit and loss Total 16621332.22 18461736.59 9. Credit impairment losses Projects Current period Same period lastyear Bad debt loss of accounts receivable 457485.01 -8437909.31 Bad debt losses on other receivables -2544245.75 -515171.21 Total -2086760.74 -8953080.52 1512025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. 10. Loss on impairment of assets Projects Current period Same period lastyear Inventory depreciation loss -374863314.48 Impairment loss on contract assets -2407322.73 -324845.35 Total -2407322.73 -375188159.83 11. Income from disposal of assets Included in current Projects Current period Same period last non recurringyear Amount of profit or loss Income from disposal of fixed assets -5767.73 195840.20 -5767.73 Total -5767.73 195840.20 -5767.73 12. Non operating income Included in current Projects Current period Same period last non recurringyear Amount of profit or loss Gains from damage and scrapping of non current assets 1475.00 1475.00 Fines default income 923846.06 2170800.00 923846.06 Others 18312.66 243877.03 18312.66 Total 943633.72 2414677.03 943633.72 13. Non operating expenses Included in current non Projects Current period Same period lastyear recurringAmount of profit or loss External donations 1614.33 31795.00 1614.33 Loss on damage and scrapping of non current assets 35685.54 23829.37 35685.54 Late fees and liquidated damages 212363.60 other 32.50 32.50 Total 37332.37 267987.97 37332.37 14. Income tax expense 1522025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. (1) Details Projects Current period Same period lastyear Current income tax expense 61525217.02 -4272520.91 Deferred Income Tax Expense 157641.58 894975.30 Total 61682858.60 -3377545.61 (2) Accounting profit and income tax expense adjustment process Projects Current period Same period lastyear Total profit 161235927.20 -380973503.91 Income tax expense calculated at the applicable tax rate of the parent company 40308981.80 -95243375.98 Impact of different tax rates on subsidiaries 132546.07 465029.57 Effect of adjusting income tax in previous periods -10666216.42 -6533032.37 Impact of non taxable income -4809834.15 Impact of non deductible costs expenses and losses 3748571.21 251199.32 Impact of using deductible losses of unrecognized deferred income tax assets in the previous period -99497.07 -1349670.39 Impact of deductible temporary differences or deductible losses of deferred income tax assets not 28258473.01 103842138.39 recognized in the current period Income tax expense 61682858.60 -3377545.61 15. Net after tax of other comprehensive income The net amount of other comprehensive income after tax is detailed in note 5 (1) 31 to the financial statements. （3） Notes to consolidated cash flow statement items 1. Cash received or paid related to important investment activities (1) Cash received from investment income Projects Current period Same period lastyear Dividend income from investment in other equity instruments 778495.00 777600.00 Sub total 778495.00 777600.00 (2) Net cash recovered from disposal of fixed assets intangible assets and other long-term assets Projects Current period Same period lastyear Disposal of long-term assets 162736.20 519930.21 Sub total 162736.20 519930.21 1532025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. (3) Net cash received from disposal of subsidiaries and other business units Projects Current period Same period lastyear Cash or cash equivalents received from subsidiaries in the current period Among them: Shenzhen Property Management Co. Ltd Less: cash and cash equivalents held by the company on the date of loss of control 58433.25 Among them: Shenzhen Property Management Co. Ltd Jianbang 58433.25 Add: cash or cash equivalents received in the current period from disposal of subsidiaries in previous 136518.90 568863.59 periods Among them: Shenzhen Property Management Co. Ltd 136518.90 568863.59 Net cash received from disposal of subsidiaries 78085.65 568863.59 (4) Cash paid for the purchase and construction of fixed assets intangible assets and other long-term assets Projects Current period Same period lastyear Purchase of fixed assets 572220.99 739401.36 Long term deferred expenses 761576.34 807914.47 Expenditure on Construction in progress 571822.67 Sub total 1905620.00 1547315.83 2. Other cash received or paid related to operating activities investment activities and financing activities (1) Other cash received related to operating activities Projects Current period Same period lastyear Interest income 3829111.01 7559725.59 Current and other 973811.18 8330076.43 Total 4802922.19 15889802.02 (2) Other cash payments related to operating activities Projects Current period Same period lastyear Financial Fees 371261.82 374804.61 Cash paid operating expenses 25259295.06 28607966.11 Current and other 27171214.96 22960703.60 Total 52801771.84 51943474.32 (3) Other cash received related to investment activities 1542025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Projects Current period Same period lastyear Fund wealth management products 1114167212.32 Total 1114167212.32 (4) Other cash payments related to investment activities Projects Current period Same period lastyear Fund wealth management products 1160000000.00 90000000.00 Total 1160000000.00 90000000.00 3. Supplementary information to cash flow statement Supplementary information Current period Same period last year (1) Adjusting net profit to cash flow from operating activities: Net profit 99553068.60 -377595958.30 Plus: provision for impairment of assets 2407322.73 375188159.83 Provision for credit impairment 2086760.74 8953080.52 Depreciation of fixed assets depreciation of right of use assets depletion of oil and gas assets 28521195.63 28234946.71 depreciation of productive biological assets Amortization of intangible assets Amortization of long term deferred expenses 783201.85 686525.85 Losses on disposal of fixed assets intangible assets and other long-term assets (gains are 5767.73 -195840.20 represented with -) Loss on scrapping of fixed assets (income expressed with -) 34210.54 23829.37 Loss from changes in fair value (income is represented with -) -16621332.22 -18461736.59 Financial expenses (income is represented with -) 3867783.17 2586822.94 Investment loss (income expressed with -) 150943612.67 -1346463.59 Decrease in deferred income tax assets (increase expressed with -) 517729.72 2741314.32 Increase in deferred income tax liabilities (decrease expressed with -) -360088.14 -1846339.02 Decrease in inventory (increase expressed with -) 967660785.97 -96487621.86 Decrease in operating receivables (increase expressed with -) -752415765.38 -50483605.92 Increase in operating payables (decrease expressed with -) -582303687.54 598936.15 other Net cash flow from operating activities -95319433.93 -127403949.79 (2) Major investment and financing activities not involving cash receipts and payments: 1552025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Supplementary information Current period Same period last year Debt to capital Convertible corporate bonds due within one year New right to use assets (3) Net change in cash and cash equivalents: Closing balance of cash 278891920.87 520910254.44 Less: Beginning balance of cash 520910254.44 859146413.35 Add: ending balance of cash equivalents Less: Beginning balance of cash equivalents Net increase in cash and cash equivalents -242018333.57 -338236158.91 4. Composition of cash and cash equivalents (1) Details Projects Closing balance Beginning balance 1) Cash 278891920.87 520910254.44 Including: cash on hand 19892.83 38975.98 Bank deposits ready for payment 278872028.04 518481597.91 Other monetary funds that can be used for payment at any time 2389680.55 Central bank deposits available for payment Interbank deposits Interbank Funding 2) Cash equivalents Among them: bond investment due within three months 3) Balance of cash and cash equivalents at the end of the period 278891920.87 520910254.44 Among them: restricted use of cash by the parent company or subsidiaries within the group Cash equivalents (2) Cash and cash equivalents held by the company with limited scope of use Projects Closing balance Beginning Reasons for limited scope of balance use and reasons for cash andcash equivalents Monetary funds 5794604.17 8332470.92 Litigation freezing marginand other regulated accounts Sub total 5794604.17 8332470.92 5. Changes in liabilities related to financing activities Projects Beginning Increase in current period Decrease in current period Closing balance balance 1562025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Cash Non cash movements movements Cash movements Non cash movements Short-term borrowings 1563000.00 50000.00 1563000.00 50000.00 Long-term loans (including long-term 96162025.65 96162025.65 loans due within one year) Sub total 97725025.65 50000.00 96162025.65 1563000.00 50000.00 （4） Others 1. Foreign currency monetary items Foreign currency Projects balance at the end of Conversion Balance converted into RMB at the period rate the end of the period Monetary funds 4015874.15 Of which: US $ 30040.81 7.0288 211150.85 HKD 4212399.31 0.90322 3804723.30 Accounts receivable 327542.08 Of which: US $ 46600.00 7.0288 327542.08 Other receivables 18689770.43 Including: Hong Kong dollars 20692378.86 0.90322 18689770.43 Other accounts payable 21941821.60 Of which: US $ 722044.70 7.0288 5075107.79 HKD 18673981.77 0.90322 16866713.81 Accounts payable 142421.23 Of which: US $ 100.00 7.0288 702.88 HKD 156903.47 0.90322 141718.35 2. Leasing (1) The company as tenant 1) The company's accounting policies for use rights assets are detailed in note 3 (30) to the financial statements. 2) The company's accounting policies for short-term leases and low value asset leases are detailed in note 3 (30) to the financial statements.The amount of short-term lease expenses and low value asset lease expenses included in the current profit and loss is as follows: Projects Current period Same period lastyear Short-term rental 99475.70 56045.24 1572025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Total 99475.70 56045.24 3) Current profit and loss and cash flow related to leasing Projects Current period Same period lastyear Interest expense on lease liabilities Total cash outflows related to leases 99475.70 56045.24 4) The maturity analysis of lease liabilities and the corresponding liquidity risk management are detailed in note 8 (2) to these financial statements. (2) The company as lessor 1) Operating leases 1) Rental income Projects Current period Same period lastyear Rental income 62658114.48 69153461.54 Among them: income related to variable lease payments not included in the measurement of lease receipts 2) Operating lease assets Projects Closing balance End of last year Investment properties 522634659.17 515925116.54 Sub total 522634659.17 515925116.54 3) According to the lease contract signed with the lessee the undiscounted lease receipts to be received in the future by the irrevocable lease Remaining term Closing balance End of last year Within 1 year 56116305.50 52670249.55 1-2 years 41138989.98 36475042.36 2-3 years 27878059.45 22511849.37 3-4 years 20246078.56 12694568.09 4-5 years 13037427.03 10772038.12 Five years later 1496990.34 8015870.44 Total 159913850.86 143139617.93 6、 Rights and interests in other entities （1） Composition of enterprise groups 1. The company includes 12 subsidiaries such as Shenzhen shenfang group Longgang Development Co. Ltd. and great wall real estate Co. Ltd. in the scope of consolidated financial statements. 2. Basic information of important subsidiaries 1582025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Unit: 10000 yuan Principal Shareholding registered place of ratio (%)Name of subsidiary capital business Nature of Acquisitio and place of business direct indirec n method registration t Shenzhen shenfang group Longgang Development Co. 3000.00 Shenzhen Real estate 95.00 5.00 set up Ltd Great wall properties $500000 United States Real estate 70.00 set up Shenzhen Haiyan Rent and Hotel Co. Ltd 3000.00 Shenzhen management 68.10 31.90 set upservices Shenzhen Zhentong Engineering Co. 1000.00 Shenzhen Construction 73.00 27.00 set up Ltd Shenzhen huazhan Construction eight Supervision Co. hundred Shenzhen Construction 75.00 25.00 set up Ltd Shenzhen Lianhua Enterprise Co. Ltd 1000.00 Shenzhen Construction 95.00 5.00 set up 1 million Xinfeng Enterprise Hong Investment Co. Ltd Kong Hong Kong and 100.00 set up dollars management Shenzhen shenfang bonded trade Co. five Shenzhen Import andhundred export trade 95.00 5.00 set upLtd Shenzhen Shenfang Investment Co. 1000.00 Shenzhen Investment 90.00 10.00 set up Ltd 10000 Hong InvestmentHualin Co. Ltd Kong Hong Kong and 100.00 set up dollars management Beijing Xinfeng real estate $10 development and million Beijing Real estate 75.00 25.00 set up Operation Co. Ltd Shenzhen shenfang Chuanqi Real Estate 3000.00 Shenzhen Real estate 100.00 set up Development Co.Ltd (2) Other instructions 1) There are three subsidiaries of the company that have been suspended for a long time and whose industrial and commercial registration has been revoked but not cancelled namely Guangzhou Huangpu new estate real estate development Co. Ltd. and Xinfeng real estate development and construction (Wuhan) Co. Ltd. two secondary subsidiaries held by Beijing Xinfeng real estate development and Operation Co. Ltd. and Xinfeng real estate development and 1592025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. construction (Wuhan) Co. Ltd. these three subsidiaries are reported on the basis of non continuing operations. 2) Jianbang company was liquidated on November 30 2025 and taken over by the bankruptcy administrator which will no longer be included in the scope of consolidation from that date. （2） Changes in the scope of consolidation for other reasons Decrease in consolidation scope From the Company Equity disposal Timing of equity Net assets at beginning of the name disposal disposal date period to thedisposal date Net profit Jianbang Receivership November 302025 55460144.68 -589075.49 [note] In November 2025 the company received the decision of Huizhou intermediate people's Court of Guangdong Province ((2025) yue13po no.45-1) and the court ruled that Jianbang company was bankrupt. According to the provisions of the accounting standards for business enterprises Jianbang company is no longer included in the scope of the company's consolidated financial statements.Based on the property survey and creditor's Rights Verification of Jianbang company counted at the first creditor's meeting the company estimates the recoverable amount of the remaining assets of Jianbang company with reference to the sales price of real estate and land per unit area assessed by a third party and calculates the liquidation price of creditor's rights attributable to the company. At the consolidated statement level the company estimates the fair value of other receivables of Jianbang company as 742.9747 million yuan which is recognized as receivables.The difference between the original book balance and the recoverable amount of receivables offsets the investment income generated by the disposal of subsidiaries. （3） Significant non-wholly-owned subsidiaries 1. Details Minority Name of sharehold Less attributable in Minority shareholders Minority subsidiary ers the current period in the current period shareholders at the Sharehold Gains and losses ofminority shareholders Dividends declared end of the period ing ratio Equity balance Great wall properties 30.00% -98694.29 -22801466.23 Xinfeng Investment Co. Ltd 45.00% -15574.61 -116172006.07 Bestway Properties Limited 20.00% -19.24 -3870524.87 Jianbang 49.00% -288646.99 2. Main financial information of important non wholly-owned subsidiaries (1) Assets and liabilities Closing balance Subsidiaries Non name current assets Non currentassets Total Assets current liabilities current Total liabilitiesliabilities Great wall properties 526052.05 19420237.01 19946289.06 111745358.13 111745358.13 Xinfeng Investment 517.26 2292.80 2810.06 258164218.56 258164218.56 1602025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Closing balance Subsidiaries Non name current assets Non currentassets Total Assets current liabilities current Total liabilitiesliabilities Co. Ltd Bestway Properties 32812021.68 32812021.68 Limited Jianbang (Continued) Subsidiar Beginning balance ies current assets Non current Non name assets Total Assets current liabilities current Total liabilitiesliabilities Great wall 334066.53 19862585.63 20196652.16 113755645.58 113755645.58 properties Xinfeng Investme nt Co. 193038.35 36016.90 229055.25 259168553.63 259168553.63 Ltd Bestway Propertie 1084.11 1084.11 33634035.70 33634035.70 s Limited Jianbang 1546413206.24 6596481.14 1553009687.38 1496960467.21 1496960467.21 (2) Profit and loss and cash flow Subsidia Current period Same period last year ries name Operating Total Cash flow from Total Cash flow from income Net profit comprehensive operating Operating income Net profit comprehensive operatingincome activities income activities Great wall propertie 697969.09 -328980.98 1759924.36 158148.77 695682.90 -351389.23 -1731679.70 -124152.78 s Xinfeng Investme nt Co. -34610.25 -64961.29 Ltd Bestway Propertie s -96.22 820929.91 -713023.86 Limited Jianbang -1918706.24 -1918706.24 -2412.86 -409694614.91 -409694614.91 -5663416.92 [note] Jianbang company was taken over by the bankruptcy administrator for bankruptcy liquidation on November 30 2025 and will no longer be included in the scope of consolidation from November 30 2025. （4） Equity in joint ventures or associates 1. Summary financial information of unimportant joint ventures and associates Projects Closing balance/current Beginning balance/samebalance period last year Joint venture Total book value of investment 1612025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Projects Closing balance/current Beginning balance/samebalance period last year The total number of the following items calculated according to the shareholding ratio Net profit Other comprehensive income Total comprehensive income Associates Total book value of investment The total number of the following items calculated according to the shareholding ratio Net profit Other comprehensive income Total comprehensive income 2. Excess losses incurred by joint ventures or associates Joint ventures or Previous Unrecognized losses in Cumulative at the end of Name of joint accumulation not the current period venture Recognised losses (or net profit shared in the period the current period) Unrecognized losses Shenzhen Xinfeng Real Estate 2217955.89 2217955.89 Consulting Co. Ltd 7、 Government subsidies Amount of government subsidies included in current profit and loss Projects Current period Same period last year Amount of government subsidies included in other income 753298.54 Total 753298.54 8、 Risks related to financial instruments The goal of the company's risk management is to strike a balance between risk and return minimize the negative impact of risk on the company's operating results and maximize the interests of shareholders and other equity investors.Based on this risk management objective the basic strategy of the company's risk management is to confirm and analyze various risks faced by the company establish an appropriate bottom line of risk tolerance and risk management and supervise various risks in a timely and reliable manner to control risks within a limited range.The company is facing various risks related to financial instruments in its daily activities mainly including credit risk liquidity risk and market risk.Management has considered and approved policies to manage these risks summarized below. 1622025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. （1） Credit risk Credit risk refers to the risk that one party to a financial instrument fails to perform its obligations and causes financial losses to the other party. 1. Credit risk management practice (1) Evaluation method of credit risk The company assesses on each balance sheet date whether the credit risk of the relevant financial instruments has increased significantly since initial recognition.In determining whether credit risk has increased significantly since initial recognition the company considers obtaining reasonable and evidence-based information without unnecessary additional costs or efforts including qualitative and quantitative analysis based on historical data external credit risk ratings and forward-looking information.Based on a single financial instrument or a combination of financial instruments with similar credit risk characteristics the company determines the change in the risk of default during the expected duration of financial instruments by comparing the risk of default of financial instruments on the balance sheet date with the risk of default on the initial recognition date.When one or more of the following quantitative and qualitative criteria are triggered the company believes that the credit risk of financial instruments has increased significantly: 1) The quantitative standard is mainly that the default probability of the remaining duration on the balance sheet date increases by more than a certain proportion compared with the initial recognition; 2) The qualitative criteria are mainly significant adverse changes in the debtor's business or financial situation existing or expected changes in the technical market economic or legal environment and will have a significant adverse impact on the debtor's ability to repay the company. (2) Definition of default and credit impaired assets When a financial instrument meets one or more of the following conditions the company defines the financial asset as having defaulted and its standard is consistent with the definition of credit impairment: 1) The debtor has significant financial difficulties; 2) The debtor violates the binding provisions of the contract on the debtor; 3) The debtor is likely to go bankrupt or undergo other financial restructuring; 4) The creditor gives the debtor concessions that it would not otherwise make because of economic or contractual considerations related to the debtor's financial difficulties. 2. Measurement of expected credit losses The key parameters of expected credit loss measurement include default probability default loss rate and default risk exposure.Considering the quantitative analysis and forward-looking information of historical statistics (such as counterparty rating guarantee method collateral category repayment method etc.) the company establishes a default probability default loss rate and default risk exposure model. 3. The reconciliation between the Beginning balance of the provision for loss of financial instruments and the closing balance is detailed in notes V (1) 3 V (1) 4 V (1) 6 and V (1) 8 to these financial statements. 4. Credit risk exposure and credit risk concentration The company's credit risk mainly comes from monetary funds and receivables.In order to 1632025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. control the above related risks the company has taken the following measures respectively. (1) Monetary funds The company deposits bank deposits and other monetary funds in financial institutions with higher credit ratings so its credit risk is low. (2) Receivables and contract assets The company regularly evaluates the credit of customers who trade by credit.According to the credit assessment results the company chooses to conduct transactions with recognized customers with good credit and monitors their accounts receivable balances to ensure that the company will not face significant bad debt risks.As the company's accounts receivable risk points are distributed among multiple partners and multiple customers.Credit risk is centrally managed according to customers.As of December 31 2025 the company has a certain credit concentration risk and 38.71% of the company's accounts receivable and contract assets (December 31 2024: 40.97%) are from the top five customers in the balance.The company does not hold any collateral or other credit enhancement for the balance of accounts receivable and contract assets.The maximum credit risk exposure to the company is the book value of each financial asset in the balance sheet. （2） Liquidity risk Liquidity risk refers to the risk of capital shortage when the company performs its obligation to settle by delivering cash or other financial assets.Liquidity risk may stem from the inability to sell financial assets at fair value as soon as possible;Or because the other party is unable to repay its contract debts;Or from debt maturing early;Or from the inability to generate the expected cash flow.In order to control this risk the company comprehensively uses bill settlement bank borrowing and other financing means and adopts the appropriate combination of long-term and short-term financing methods to optimize the financing structure so as to maintain a balance between financing sustainability and flexibility.The company has obtained bank credit lines from a number of commercial banks to meet working capital needs and capital expenditure.Financial liabilities are classified by remaining maturity Closing balance Projects book value Undiscounted More than 3contract amount Within 1 year 1-3 years years Short-term borrowings 50000.00 50000.00 50000.00 Accounts payable 171738333.04 171738333.04 171738333.04 Other accounts payable 144280409.16 144280409.16 144280409.16 Other current liabilities 7329890.15 7329890.15 7329890.15 Sub total 323398632.35 323398632.35 323398632.35 (Continued) Beginning balance Projects book value Undiscounted More than 3contract amount Within 1 year 1-3 years years Short-term borrowings 1563000.00 1599446.39 1599446.39 1642025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Beginning balance Projects book value Undiscounted Within 1 year 1-3 years More than 3contract amount years Accounts payable 464488982.30 464488982.30 464488982.30 Other accounts payable 561016653.17 561016653.17 561016653.17 Non current liabilities due 33888347.83 36522809.86 36522809.86 within one year Other current liabilities 118304068.47 118304068.47 118304068.47 Long-term borrowings 62273677.82 67283938.91 4788462.25 62495476.66 Sub total 1241534729.59 1249215899.10 1181931960.19 4788462.25 62495476.66 （3）Market risk Market risk refers to the risk that the fair value or future cash flow of financial instruments will fluctuate due to changes in market prices.Market risks mainly include interest rate risk and foreign exchange risk. 1. Interest rate risk Interest rate risk refers to the risk that the fair value or future cash flow of financial instruments will fluctuate due to changes in market interest rates.Fixed interest rate interest bearing financial instruments expose the company to fair value interest rate risk and floating interest rate interest bearing financial instruments expose the company to cash flow interest rate risk.The company determines the ratio of fixed interest rate to floating interest rate financial instruments according to the market environment and maintains an appropriate portfolio of financial instruments through regular review and monitoring.The cash flow interest rate risk faced by the company is mainly related to the company's bank loans with floating interest rates.As of December 31 2025 the company's bank loans with no floating interest rate (December 31 2024: RMB 62273677.82) assuming that other variables remain unchanged assuming that the interest rate changes by 50 basis points will not have a significant impact on the company's total profit and shareholders'equity. 2. Foreign exchange risk Foreign exchange risk refers to the risk that the fair value or future cash flow of financial instruments will fluctuate due to changes in foreign exchange rates.The risk of exchange rate changes faced by the company is mainly related to the company's foreign currency monetary assets and liabilities.For foreign currency assets and liabilities if there is a short-term imbalance the company will buy and sell foreign currencies at market exchange rates when necessary to ensure that the net risk exposure is maintained at an acceptable level.Exchange rate risk is mainly that the company's financial position and cash flow are affected by fluctuations in foreign exchange rates.In addition to the assets denominated in Hong Kong dollars held by subsidiaries established in Hong Kong there is only a small amount of Hong Kong market investment business and the foreign currency assets and liabilities held by the company do not account for a significant proportion of the overall assets and liabilities.Therefore the company believes that the exchange rate risk is not significant.The company's foreign currency monetary assets and liabilities at the end of the period are detailed in note 5 (4) 1 to the financial statements. 1652025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. 9、 Disclosure of fair value （1） Details of fair value of assets and liabilities measured at fair value at the end of the period Fair value at the end of the period Projects Level 1 fairness Level 2 Value fairness Level 3 fairness Value Total measurement Valuemeasurement measurement Continuing fair value measurement 1. Trading financial assets and other non current financial 1050256058.41 1050256058.41 assets (1) Financial assets classified as at fair value through profit or loss Fund finance 1050256058.41 1050256058.41 (2) Financial assets designated as measured at fair value and whose changes are included in the current profit and loss Debt instruments investments 2. Investment in other equity instruments 14571511.81 14571511.81 Total assets continuously measured at fair value 1064827570.22 1064827570.22 （2） Continuous and non continuous third level fair value measurement projects valuation technology and qualitative and quantitative information of important parameters For fund financing that is not traded in an active market its remaining period is relatively short and its fair value is determined by the sum of book value and expected income.For other equity instrument investments that are not traded in the active market the investment amount is small the net assets of the invested unit change little and the book value is similar to the fair value so the book value is used to determine its fair value. 10、 Related parties and related transactions （1） Related parties 1. Parent company of the company (1) Parent company of the company Shareholding Voting Registered ratio of the rights of Parent company Place of Nature of capital parent the parent name incorporation business (10000 company to company yuan) the company to the (%) company(%) Investment Shenzhen Investment Shenzhen real estate Holding Co. Ltd Guangdong development 3358600.00 54.79 54.79 guarantee (2) The ultimate controller of the company is the state owned assets supervision and 1662025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Administration Commission of Shenzhen Municipal People's government. 2. For details of the company's subsidiaries please refer to note 6 to the financial statements. 3. Joint ventures and associates of the company For details of the company's important joint ventures or associates please refer to note 6 to the financial statements. 4. Other related parties of the company Names of other related parties Relationship between other related parties andthe company Shenzhen Oriental New World Department Store Co. Ltd Shareholding company Shenzhen Shenxi building decoration company Revoked but not cancelled holding subsidiariesnot included in the merger Shenzhen zhentongxin Electromechanical Industry Development Co. Ltd Holding subsidiaries not included in the merger Shenzhen Nanyang Hotel Co. Ltd Revoked but not cancelled holding subsidiariesnot included in the merger Shenzhen real estate electromechanical Revoked but not cancelled holding subsidiaries management company not included in the merger Shenzhen Longgang Henggang Huagang Revoked but not cancelled holding subsidiaries Industrial Co. Ltd not included in the merger Guangdong Jianbang group (Huiyang) Holding subsidiaries not included in the merger Industrial Co. Ltd. [note] that have entered bankruptcy proceedings Guangzhou bobi Enterprise Management Consulting Co. Ltd. (hereinafter referred to as Shareholders of subsidiaries Guangzhou bobi) Shenzhen Property Management Co. Ltd Holding subsidiary of parent company Guoren Property Insurance Co. Ltd Holding subsidiary of parent company Shenzhen water planning and Design Institute Co. Ltd Holding subsidiary of parent company Shenzhen General Institute of Architectural Design and Research Holding subsidiary of parent company Shenzhen shenfang property cleaning Co. Ltd Holding subsidiary of parent company Shenzhen Property Management Co. Ltd.Shantou branch Holding subsidiary of parent company Shenzhen Xinfeng Real Estate Consulting Co.Ltd Shareholding company Guangdong Huizhou Luofushan mineral water beverage Co. Ltd Shareholding company Shenzhen Runhua Auto Trading Company Shareholding company Great Wall (Vancouver) Inc Shareholding company Burkton Australia Limited Shareholding company Baili Co. Ltd Shareholding company Shenzhen shenfang Department Store Co. Ltd Shareholding company Shenzhen ronghua Electromechanical Engineering Co. Ltd Shareholding company Xi'an Xinfeng Property Trading Co. Ltd Shareholding company 1672025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Names of other related parties Relationship between other related parties andthe company Fengkai Lianfeng cement manufacturing Co.Ltd Shareholding company Beijing Shenfang Property Management Co.Ltd Shareholding company [note] before November 30 2025 Guangdong Jianbang group (Huiyang) Industrial Co. Ltd.was a holding subsidiary of the company. On and after November 30 2025 Guangdong Jianbang group (Huiyang) Industrial Co. Ltd. entered bankruptcy liquidation proceedings and was taken over by the administrator.The company loses control of it and will no longer include it in the scope of consolidated statements. At the time of loss of control the corresponding book balance of long- term equity investment is 450000000.00 yuan and the provision for impairment of long-term equity investment is 450000000.00 yuan. （2） Related party transactions 1. Related party transactions for purchasing and selling commodities providing and receiving labor services (1) Related party transactions for purchasing goods and receiving services Related parties Content of relatedparty transactions Current period Same period last year Shenzhen water planning and Design Testing services 27169.81 Institute Co. Ltd Guoren Property Insurance Co. Ltd Insurance services 265372.43 322255.28 Shenzhen Property Management Co. Ltd Property services 3718815.11 7472214.59 Shenzhen shenfang property cleaning Co. Cleaning services 520444.89 497453.20 Ltd Shenzhen Property Management Co. Ltd. Property services 2553168.28 2480734.94 Shantou branch Shenzhen ronghua Electromechanical Engineering services 310179.94 Engineering Co. Ltd Sub total 7367980.65 10799827.82 (2) Related party transactions for the sale of goods and the provision of services Related parties Content of relatedparty transactions Current period Same period last year Guoren Property Insurance Co. Ltd Leasing services 424754.28 773325.68 Shenzhen Property Management Co. Ltd Leasing services 5199896.63 5476586.12 Shenzhen shenfang property cleaning Co. Leasing services 41714.28 39999.96 Ltd Sub total 5666365.19 6289911.76 2. Related party leases Company rentals 1682025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Confirmed in the Confirmed in the Name of tenant Types of leased assets current period same period last year Rental income Rental income Shenzhen Property Management Co. Ltd Houses buildings 5199896.63 5476586.12 Shenzhen shenfang property cleaning Co. Houses buildings 41714.28 39999.96 Ltd Guoren Property Insurance Co. Ltd Houses buildings 424754.28 773325.68 Sub total 5666365.19 6289911.76 3. Remuneration of key management Projects Current period Same periodlast year Key management compensation 6981280.00 8572590.00 4. Other related party transactions In order to advocate that the core employees of the group share the operating results of market-oriented projects with the company share operational risks stimulate their endogenous motivation to improve efficiency and increase efficiency improve asset management efficiency and realize the preservation and appreciation of state-owned assets the company formulated the measures for the management of employees in linxijun project of shenfang group in July 2021.According to the provisions of the above management measures the follow-up will constitute a related party transaction of joint investment with some directors supervisors and senior executives of the company.The company has cancelled the follow-up investment in the Lin Xinyuan project in June 2025 and returned the follow-up investment amount in full in 2025. （3） Receivables and payables from related parties 1. Receivables from related parties project Closing balance Beginning balance name Related parties Book balance Bad debt Bad debtprovision Book balance provision Accounts receivable Shenzhen Property Management Co. 500000.00 1025942.86 Ltd Shenzhen Xinfeng Real Estate 1212232.73 1212232.73 1237010.58 1237010.58 Consulting Co. Ltd Sub total 1712232.73 1212232.73 2262953.44 1237010.58 Other receivables Guangdong Jianbang group (Huiyang) Industrial 843296961.67 102965447.05 Co. Ltd Shenzhen Property Management Co. 5500.00 Ltd Guangdong Huizhou Luofushan mineral water 10465168.81 10465168.81 10465168.81 10465168.81 beverage Co. Ltd 1692025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. project Closing balance Beginning balance name Related parties Book balance Bad debt Bad debtprovision Book balance provision Shenzhen Runhua Auto Trading 3072764.42 3072764.42 3072764.42 3072764.42 Company Great Wall (Vancouver) Inc 89035748.07 89035748.07 89035748.07 89035748.07 Burkton Australia Limited 12559290.58 12559290.58 12559290.58 12559290.58 Baili Co. Ltd 19363348.69 19363348.69 20251959.02 20251959.02 Shenzhen shenfang Department Store 237648.82 237648.82 237648.82 237648.82 Co. Ltd Shenzhen ronghua Electromechanical Engineering Co. 475223.46 475223.46 475223.46 475223.46 Ltd Xi'an Xinfeng Property Trading 8391333.18 8391333.18 8419205.19 8419205.19 Co. Ltd Shenzhen Shenxi building decoration 7660529.37 7660529.37 7660529.37 7660529.37 company Shenzhen Nanyang Hotel Co. Ltd 3168721.00 3168721.00 3168721.00 3168721.00 Beijing Shenfang Property Management Co. 6905673.69 6533817.09 6905673.69 6533817.09 Ltd Sub total 1004632411.76 263929040.54 162257432.43 161880075.83 2. Amounts due to related parties entry name Related parties Closing balance Beginning balance Other accounts payable - interest payable Shenzhen Investment Holding Co. Ltd 16535277.94 16535277.94 Sub total 16535277.94 16535277.94 Accounts payable Shenzhen Property Management Co. Ltd 8127082.22 12658092.83 Sub total 8127082.22 12658092.83 Other accounts payable Shenzhen Property Management Co. Ltd 171466.20 244304.26 Guoren Property Insurance Co. Ltd 74332.00 Shenzhen Oriental New World Department Store 902974.64 902974.64 Co. Ltd Fengkai Lianfeng cement manufacturing Co. Ltd 1867348.00 1867348.00 1702025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. entry name Related parties Closing balance Beginning balance Shenzhen real estate electromechanical 14981420.99 14981420.99 management company Shenzhen zhentongxin Electromechanical Industry 8260832.50 8310832.50 Development Co. Ltd Shenzhen shenfang Department Store Co. Ltd 639360.38 639360.38 Shenzhen Longgang Henggang Huagang 165481.09 165481.09 Industrial Co. Ltd Guangzhou bobi Enterprise Management Consulting 206903717.13 Co. Ltd Sub total 26988883.80 234089770.99 11、 Commitments and contingencies （1） Important commitments As of December 31 2025 the company does not need to disclose important commitments. （2） Contingencies 1. Contingent liabilities arising from pending litigation and arbitration and their financial impact plaintiff defendant Cause of Court of Targetaction acceptance amount Note In the bankruptcy Zhongshan GuangdongJianbang group Filing for Huizhou Creditor's liquidation theShengtang (Huiyang) bankruptcy intermediate rights and administrator has takenAdvertising Co. Industrial Co. liquidation people's debts under over JianbangLtd Ltd court review company.Case details: [Note 1] Huizhou Mingxiang Economic Progress of the case: Information Guangdong Principal Jianbang company hasConsulting Co. Jianbang group Litigation Huiyang 177.1514 entered the bankruptcyLtd. Huizhou (Huiyang) over bill District million yuan liquidation procedureHuiyang Hongfa Industrial Co. payment Court interest and creditors canindustry and Ltd claim 2.8482 declare their creditor'sTrade Co. Ltd. million yuan rights to the manager.and Huizhou Case details: [Note 2] jinlongsheng Industrial Co. Ltd Guangzhou bobi Case progress: in the Enterprise second instance.Hengda Management Pearl River Delta Consulting Co. company has entered Ltd. Evergrande the bankruptcy real estate group Disputes Huizhou liquidation procedure Shenzhen Special Pearl River Delta over joint intermediate and has declared its Economic Zone real estate venture and people's 743.575 creditor's rights to the Real Estate development Co. cooperative Court of million yuan manager.Guangzhou (Group) Co. Ltd Ltd. Shenzhen development Guangdong bobi and Shenzhen Qijin Investment real estate Province Qijin are handling Co. Ltd. contracts liquidation cancellation (hereinafter and have declared their referred to as creditor's rights to the Shenzhen Qijin) liquidation group and the third respectively. 1712025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. person is Case details: [Note 3] Guangdong Jianbang group (Huiyang) Industrial Co.Ltd Case progress: end the enforcement process.Jianbang Shenzhen Special Guangdong Shenzhen Economic Zone Jianbang group Loan Luohu Principal and company has entered interest the bankruptcy Real Estate (Huiyang) contract District (Group) Co. Ltd Industrial Co. disputes People's 395.6885 liquidation procedure Ltd court million yuan and has declared itscreditor's rights to the manager.Case details: [Note 4] Guangdong Progress of the case: Jianbang group Jianbang company and (Huiyang) Hengda Pearl River Industrial Co. Delta company have Ltd. Guangzhou entered the bankruptcy bobi Enterprise liquidation procedure Shenzhen Special Management Huizhou and have declared their Economic Zone Consulting Co. Loan Huiyang Principal and creditor's rights to the Ltd. Evergrande contract District interest managerReal Estate real estate group disputes People's 419.5229 respectively.Guangzhou(Group) Co. Ltd Pearl River Delta court million yuan bobi and Shenzhen real estate Qijin are handling development Co. liquidation cancellation Ltd. and and have declared their Shenzhen Qijin creditor's rights to the Investment Co. liquidation group Ltd respectively.Case details: [Note 5] [Note 1] on October 27 2025 Jianbang company received the civil ruling and decision made by Huizhou intermediate people's court which ruled to accept the application for bankruptcy liquidation of Jianbang company by Zhongshan Shengtang Advertising Co. Ltd. (hereinafter referred to as Shengtang company) and appoint an administrator. For details please refer to the announcement on court ruling to accept the application for bankruptcy liquidation of holding subsidiaries and the appointment of managers issued by the company on October 30 2025 (Announcement No.: 2025-030).On December 8 2025 the company submitted creditor's rights declaration materials to the manager of Jianbang company in accordance with the amount of creditor's rights confirmed by the effective civil judgment the confirmation of creditor's rights and debts and the transfer certificate;The company actively participates in creditors' meetings and exercises creditors' rights according to law.[Note 2] Jianbang company is a subsidiary of the company holding 51% of the shares.Because Jianbang company was unable to pay the commercial acceptance bill due in January 2022 with a total amount of 177.1514 million yuan the plaintiff company filed a lawsuit on the dispute of bill payment claim with Huiyang District Court.On March 14 2023 the court ruled that Jianbang company would pay commercial bills and overdue interest (including litigation fees and preservation fees of about 1.03 million yuan) to three companies within 15 days.The case seized 2 and 4 buildings in the first phase of shenfang linxinyuan project totaling 153 units with an estimated price of 220 million yuan at the filing price.The plaintiff has applied to Huizhou intermediate people's court for execution.As of December 31 2025 in view of the bankruptcy liquidation proceedings of Jianbang company the manager took over Jianbang company and handled all litigation and execution cases in a unified manner. 1722025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. [Note 3] on April 30 2021 the company signed the cooperative development agreement and the entrusted management agreement with Guangzhou bobi Hengda Pearl River Delta and Jianbang company. Guangzhou bobi promised that Jianbang company would achieve a cumulative net profit of not less than 1.25 billion yuan in 2021-2025. If Guangzhou bobi fails to fulfill its profit commitment it will make up the difference.On June 30 2021 due to the acquisition of 51% equity of Guangzhou bobi by Shenzhen Qijin the company Guangzhou bobi Hengda Pearl River Delta and Shenzhen Qijin jointly signed supplementary agreement I to the cooperative development agreement stipulating that Shenzhen Qijin shall be jointly and severally liable with Hengda Pearl River Delta for the profit commitment and difference supplement of Guangzhou bobi to the company stipulated in the cooperative development agreement.Now the company has filed a lawsuit because the acts of Guangzhou bobi and Hengda Pearl River Delta have fundamentally violated the contract and have actually lost the ability to perform the contract resulting in the failure to achieve the purpose and expected benefits of the company's contract.On January 8 2025 the company received the civil judgment of the first instance of the case and the judgment made by Huizhou intermediate people's Court of the first instance supported some of the company's claims.On January 22 2025 the company appealed the unsubstantiated application.The case was heard in the second instance on May 22 2025 and is now in the second instance.In view of the fact that Evergrande Pearl River Delta company has entered the bankruptcy liquidation procedure the company has declared its creditor's rights to the manager while Guangzhou bobi and Shenzhen Qijin are handling the liquidation cancellation and the company has declared its creditor's rights to the liquidation group respectively.[Note 4] in 2021 the company acquired Guangzhou bobi to hold 51% of the shares of Jianbang company. At the time of acquisition it was agreed that the company would provide interest bearing loans to Jianbang company according to the proportion of shares.Later Jianbang company borrowed money from the company twice and signed the loan agreement.After the signing of the agreement the company shall provide loans to Jianbang company in accordance with the contract and fulfill its lending obligations.Now the two loans have expired but Jianbang company has not repaid them which constitutes a default.As a state-controlled listed company the company filed this lawsuit in order to protect state-owned assets from losses.The case was judged in the first instance in December 2023. In January 2024 the company received the civil judgment made by the people's Court of Luohu District Shenzhen City Guangdong Province: it was judged that Jianbang company would repay the principal of the loan of 344696200.26 yuan and pay interest to the company within 10 days from the date of entry into force of the judgment;Judgment Jianbang company shall pay liquidated damages to the company within 10 days from the effective date of the judgment.The company has applied for compulsory execution and received the execution ruling on December 2 2025 ruling to terminate the execution procedure.In view of the fact that Jianbang company has entered the bankruptcy liquidation proceedings the company has declared its creditor's rights to the manager.[Note 5] in 2021 the company acquired Guangzhou bobi to hold 51% of the shares of Jianbang company and agreed to provide interest bearing loans to Jianbang company according to the proportion of shares.The latter five parties signed an agreement to stipulate that the company will provide loans to Jianbang company and Jianbang company will provide corresponding collateral. At the same time Guangzhou bobi Hengda Pearl River Delta and Shenzhen Qi are jointly and severally liable for 49% of the total amount of loans interest and liquidated 1732025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. damages.After the signing of the agreement the company provided loans to Jianbang company in accordance with the contract and fulfilled its lending obligations but Jianbang company was unable to repay the loans. As a state-controlled listed company the company filed a lawsuit in this case in order to protect state-owned assets from losses.On June 7 2024 the company received the judgment of victory in the first instance. On June 24 2024 Guangzhou bobi appealed but failed to pay the case acceptance fee on time. In October 2024 Huizhou intermediate people's Court issued the civil ruling which was handled as withdrawal of the lawsuit and the judgment of the first instance took effect.The company applied to the court for enforcement in January 2025.In view of the fact that Jianbang company and Hengda Pearl River Delta company have entered the bankruptcy liquidation procedures the company has declared creditor's rights to the manager respectively while Guangzhou bobi and Shenzhen Qijin are handling liquidation cancellation and the company has declared creditor's rights to the liquidation group respectively. 2. Contingent liabilities formed by providing debt guarantees for other units and their financial impact As of December 31 2025 the company provided mortgage loan guarantees and subsidiary loan guarantees for commercial housing offtakers in accordance with real estate business practices totaling 181.6769 million yuan.Guaranteed Guaranteed Loan loan guarantee entity Financial institutions Paymentamount (10000 Due date Note yuan) After completing the mortgage registration of Buyer China Construction Bank 38.85 the real estate certificate Shang Linyuan and handing it over to the bank for safekeeping After completing the mortgage registration of Buyer agricultural bank 151.43 the real estate certificate Tsui Lam Yuen and handing it over to the bank for safekeeping After completing the mortgage registration of Chuanqi Buyer agricultural bank 631.55 the real estate certificate Donghu and handing it over to the Mingyuan bank for safekeeping China Construction Bank Bank of communications After completing themortgage registration of Buyer industrial and CommercialBank of China Bank of 1787.98 the real estate certificate Tian Yue Wan China Everbright Bank and and handing it over to the postal savings bank bank for safekeeping Industrial and Commercial Bank of China Huaxia Bank agricultural and After completing themortgage registration of Buyer Commercial Bank of ChinaAgricultural Bank of China 15557.88 the real estate certificate Guangming Li postal savings bank China and handing it over to the Merchants Bank and Bank bank for safekeeping of China Sub total 18167.69 12、 Events after balance sheet date Profit distribution after balance sheet date 1742025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Based on the total share capital of 1011660000 shares as of December 31 2025 the company intends to distribute a cash dividend of 0.35 yuan (including tax) per 10 shares to all shareholders totaling 35408100.00 yuan. 13、 Other important matters Segment information The company's main business is to collect rental fees and management fees for the development construction and sale of real estate products and the rental of properties.The company regards this business as a whole to implement management and evaluate business results.Therefore the company does not need to disclose segment information.Details of the company's revenue breakdown are set out in note 5 (2) 1 to the financial statements. 14、 Notes to major items in the financial statements of the parent company （1） Notes to balance sheet items of parent company 1. Accounts receivable (1) Aging Aging Closing balance Beginning balance Within 1 year 8724709.94 13309107.41 1-2 years 1992924.09 More than 5 years 4450138.62 4450138.62 Total book balance 15167772.65 17759246.03 Less: bad debt provision 10324219.89 10559107.12 Total book value 4843552.76 7200138.91 (2) Provision for bad debts 1) Category breakdown Closing balance Types Book balance Bad debt provision money Proportio book value n (%) money Provision ratio (%) Single provision for bad debts 10069296.06 66.39 10069296.06 100.00 Provision for bad debts by portfolio 5098476.59 33.61 254923.83 5.00 4843552.76 Total 15167772.65 100.00 10324219.89 68.07 4843552.76 (Continued) Beginning balance Types Book balance Bad debt provision book value money Proportion (%) money Provision ratio (%) Single provision for bad debts 10084109.60 56.78 10084109.60 100.00 1752025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Beginning balance Types Book balance Bad debt provision book value money Proportio money Provision ration (%) (%) Provision for bad debts by portfolio 7675136.43 43.22 474997.52 6.19 7200138.91 Total 17759246.03 100.00 10559107.12 59.46 7200138.91 2) Important accounts receivable with single provision for bad debts Company Beginning balance Closing balance name Book Bad debt Book Bad debt Provision Basis of balance provision balance provision ratio (%) provision Long term Not uncollected 10084109.60 10084109.60 10069296.06 10069296.06 100.00 expected house sales to berecovered Sub total 10084109.60 10084109.60 10069296.06 10069296.06 100.00 3) Accounts receivable with portfolio provision for bad debts Closing balance Projects Book balance Bad debt Provision ratioprovision (%) Portfolio of real estate sales receivables 5098476.59 254923.83 5.00 Portfolio of related parties within the scope of receivables consolidation Sub total 5098476.59 254923.83 5.00 (3) Changes in bad debt reserves Beginning Current change amountProjects balance Withdrawal Writ Closing balanceProvision or reversal e off other Single provision for 10084109.60 110856.38 9973253.22 bad debts Provision for bad debts by 474997.52 124030.85 350966.67 portfolio Total 10559107.12 234887.23 10324219.89 (4) Top 5 accounts receivable and contract assets Proportion in Provision for Book balance at the end of the period the total balance of bad debts of Company name accounts accounts receivable and receivable and Accounts Contr contract assets provision for receivable act Sub total impairment ofassets at the end of the period (%) contract assets Shenzhen Huatang famous wine City 3080162.00 3080162.00 20.31 154008.10 Investment Co. 1762025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Proportion in Provision for Book balance at the end of the period the total balance of bad debts of Company name accounts accounts Contr receivable and receivable and Accounts contract assets provision for receivable act Sub total at the end of impairment ofassets the period (%) contract assets Ltd Daxing auto parts Co. Ltd 2052228.46 2052228.46 13.53 2052228.46 Shenzhen Luohu hospital group 1240986.00 1240986.00 8.18 62049.30 Shenzhen Xinfeng Real Estate Consulting 1212232.73 1212232.73 7.99 1212232.73 Co. Ltd Wang Weidong 1200000.00 1200000.00 7.91 1200000.00 Sub total 8785609.19 8785609.19 57.92 4680518.59 2. Other receivables (1) Details Projects Closing balance Beginning balance Dividends receivable 24222722.88 29222722.88 Other receivables 1856205185.25 1722328667.65 Total 1880427908.13 1751551390.53 (2) Dividends receivable 1) Details Projects Closing balance Beginning balance Shenzhen shenfang group Longgang Development Co. Ltd 24222722.88 29222722.88 Sub total 24222722.88 29222722.88 2) Important dividends receivable with an account age of more than 1 year Whether there is Projects Closing balance Aging Reasons for impairment anduncollection its judgment basis Shenzhen shenfang group Longgang Development 24222722.88 3-4 Deferredyears payment noCo. Ltd Sub total 24222722.88 (3) Other receivables 1) Nature and classification of payments Nature of payment Closing balance Beginning balance 1772025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Nature of payment Closing balance Beginning balance Portfolio of receivables from related parties 2633214641.39 2403869206.91 Portfolio of receivables from government departments 165460.00 165460.00 Employee reserve portfolio receivable 93900.00 Collection and payment portfolio receivable 500018.15 1002722.31 Other receivables portfolio 144601238.67 142474366.82 Sub total book balance 2778481358.21 2547605656.04 Less: bad debt provision 922276172.96 825276988.39 Sub total book value 1856205185.25 1722328667.65 2) Aging Aging Closing balance Beginning balance Within 1 year 258963768.91 452103220.23 1-2 years 424416517.52 6102884.22 2-3 years 6100266.94 642158.28 3-4 years 243411.53 456845625.71 4-5 years 456845625.71 104875297.41 More than 5 years 1631911767.60 1527036470.19 Sub total book balance 2778481358.21 2547605656.04 Less: bad debt provision 922276172.96 825276988.39 Sub total book value 1856205185.25 1722328667.65 3) Provision for bad debts * Category breakdown Closing balance Book balance Bad debt provision Types Provision book value money Proportion(%) money Proportion(%) Single provision for bad debts 1662432598.59 59.83 922101083.97 55.47 740331514.62 Provision for bad debts by portfolio 1116048759.62 40.17 175088.99 0.02 1115873670.63 Sub total 2778481358.21 100.00 922276172.96 33.19 1856205185.25 (Continued) Beginning balance Types Book balance Bad debt provision book value 1782025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Provisi money Proporti on on (%) money Proportion (%) Single provision for bad debts 825174418.56 32.39 825174418.56 100.00 Provision for bad debts by portfolio 1722431237.48 67.61 102569.83 0.01 1722328667.65 Sub total 2547605656.04 100.00 825276988.39 32.39 1722328667.65 * Other receivables with portfolio provision for bad debts Closing balance Portfolio name Book balance Bad debt provision Provision ratio (%) Portfolio of receivables from related parties 1111796074.26 Portfolio of receivables from government 165460.00 departments Collection and payment portfolio receivable 500018.15 25000.91 5.00 Other receivables portfolio 3587207.21 150088.08 4.18 Sub total 1116048759.62 175088.99 0.02 4) Changes in bad debt reserves Stage 1. Stage 2. Stage 3.Expected credit Expected credit loss for the Projects Next 12 months Expected credit loss for the whole whole duration Sub total loss duration (no credit (creditimpairment) impairment has occurred) Beginning balance 102289.83 825174698.56 825276988.39 Beginning balance in current period —— —— —— --Move to phase 2 --Move to phase 3 --Back to phase 2 --Back to phase 1 Current provision 19877.93 52921.23 72799.16 Recovered or reversed in the current period Current write off Other changes 96926385.41 96926385.41 1792025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Closing balance 122167.76 52921.23 922101083.97 922276172.96 Provision ratio for bad debt reserves at the end of the 0.05 0.41 55.47 32.48 period (%) 5) Top 5 other receivables Nature Proportion Company of Book balance at the in balance of Bad debt name paymen end of the period Aging other provision at the t receivables end of the period(%) Within 1 Current year 1-2 account years 2-3 Jianbang of 843296961.67 years and thirty point 102965447.05 subsidi more three five ary than 5 years Shantou Current Huafeng Real account 1-2 years Estate of 734160642.87 more 30.35 102965447.05 Development subsidi than 5 Co. Ltd ary years Current Xinfeng account 1-2 years Enterprise Co. of 535292823.86 more 26.42 Ltd subsidi than 5 ary years Shenzhen shenfang Current Within 1 year 1-2 Chuanqi Real accountof 262695711.25 years andEstate 19.26 535292823.86 Development subsidi more than 5 Co. Ltd ary years Current Great wall account More properties of 104182848.13 than 5 9.45subsidi years ary Sub total 2479628987.78 3.75 104182848.13 3. Long-term equity investments (1) Details Closing balance Beginning balance Projects Book balance Provision for book value Book balance Provision forimpairment impairment book value Investments in 1265520833.00 133339271.15 1132181561.85 1715520833.00 554754168.86 1160766664.14 subsidiaries 1802025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Investment in associates 11977845.58 11977845.58 11977845.58 11977845.58 and joint ventures Total 1277498678.58 145317116.73 1132181561.85 1727498678.58 566732014.44 1160766664.14 (2) Investments in subsidiaries Beginning balance Increase and decrease in the current period Closing balance Investee reducBook value Impairment AddInves e Provision for other Book value Impairmentvalue ready tment Invest impairment value readyment Shenzhen Haiyan Hotel 20605047.50 20605047.50 Co. Ltd Shenzhen Shenfang Investment 9000000.00 9000000.00 Co. Ltd Xinfeng Enterprise Co. 556500.00 556500.00 Ltd Xinfeng Real Estate Co. Ltd 22717697.73 22717697.73 Shenzhen Zhentong Engineering 11332321.45 11332321.45 Co. Ltd Great wall properties 1435802.00 1435802.00 Shenzhen shenfang bonded trade 4750000.00 4750000.00 Co. Ltd Shenzhen huazhan Construction 6000000.00 6000000.00 Supervision Co. Ltd Shenzhen Lianhua Enterprise Co. 13458217.05 13458217.05 Ltd Shenzhen shenfang group Longgang 30850000.00 30850000.00 Development Co. Ltd Beijing Xinfeng real estate development 64183888.90 64183888.90 and Operation Co. Ltd Shantou Huafeng Real Estate 16467021.02 16467021.02 Development Co. Ltd Baili Co. Ltd 201100.00 201100.00 Burkton Australia 906630.00 906630.00 1812025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Beginning balance Increase and decrease in the current period Closing balance Investee Add reducBook value Impairment Inves e Provision for other Book value Impairmentvalue ready tment Invest impairment value readyment Shenzhen shenfang Department 9500000.00 9500000.00 Store Co. Ltd Shantou Xinfeng tower 58547652.25 58547652.25 Jianbang 28585102.29 421414897.71 28585102.29 450000000.00 Shenzhen shenfang Chuanqi Real Estate 995000000.00 995000000.00 Development Co. Ltd Hualin Co. Ltd 8955.10 8955.10 Sub total 1160766664.14 554754168.86 28585102.29 450000000.00 1132181561.85 133339271.15 (3) Investment in associates and joint ventures Beginning balance Increase and decrease in the current period Investmen t gains Other Investee book Addition Provision for al Reduce and losses comprehensivvalu impairment investme investmen recognize ee nts t d under Earningsthe equity adjustment method Joint venture Fengkai Xinghua Hotel 9455465.38 Sub total 9455465.38 Associates Shenzhen ronghua Electromechanic 1076954.64 al Engineering Co. Ltd Shenzhen Runhua Auto Trading 1445425.56 Company Sub total 2522380.20 Total 11977845.58 (Continued) Investee Increase and decrease in the current period Closing balance 1822025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Other Declaration Provision equity of cash for other book Provision for changes dividends or impairment value impairmentprofits Joint venture Fengkai Xinghua Hotel 9455465.38 Sub total 9455465.38 Associates Shenzhen ronghua Electromechanical Engineering Co. 1076954.64 Ltd Shenzhen Runhua Auto Trading 1445425.56 Company Sub total 2522380.20 Total 11977845.58 (4) Impairment test of long-term equity investment 1) The recoverable amount is determined at the net amount of fair value minus disposal expenses Provision for Projects book value Recoverable amount impairment in the current period Jianbang 28585102.29 28585102.29 Sub total 28585102.29 28585102.29 (Continued) Projects Determination of fair value and Key parameters and theirdisposal expenses determination basis The fair value is determined by the Estimated selling price sales Jianbang asset based method and the relevant volume production cost anddisposal expenses are determined by other related expenses of the the estimated disposal expense rate product Sub total 2) Other instructions At the end of the reporting period the company made an provision impairment test on its investment to Jianbang company according to its net recoverable amount as Jianbang company was into bankruptcy in November of 2025. （2） Notes to items in the profit statement of the parent company 1. Operating income/operating cost (1) Details Current period Same period last year Projects income cost income cost 1832025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Current period Same period last year Projects income cost income cost Main business 55192364.38 32158574.37 66692989.08 35527944.94 Other business 226373.11 225325.47 55199.50 Total 55418737.49 32383899.84 66748188.58 35527944.94 Among them: revenue from contracts with 5371428.57 161228.70 8980139.71 1396009.16 customers (2) Revenue breakdown 1) Revenue from contracts with customers is broken down by type of goods or services Current period Same period last year Projects income cost income cost real estate 5371428.57 161228.70 8980139.71 1396009.16 Sub total 5371428.57 161228.70 8980139.71 1396009.16 2) Revenue from contracts with customers is broken down by region of operation Current period Same period last year Projects income cost income cost Guangdong Province 5371428.57 161228.70 8980139.71 1396009.16 Sub total 5371428.57 161228.70 8980139.71 1396009.16 3) Revenue from contracts with customers is broken down by the time goods or services are transferred Projects Current period Same period lastyear Revenue recognized at a certain point 5371428.57 8980139.71 Sub total 5371428.57 8980139.71 (3) Information on performance obligations Payments Types of The nature of assumed by quality Time for Important the goods the Is it the the company assurance Projects performance payment company main terms undertakes to responsible that are provided by person expected to be the companytransfer refunded to and related customers obligations After the contract is Selling When goods signed the Commercial Quality goods are delivered contract price housing yes nothingshall be assurance collected in advance When the general Provision of When service is services services are completed it Leasing yes nothing nothing provided shall be services charged according to 1842025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Payments Types of The nature of Is it the assumed by quality Projects Time for Important the goods the the company assurance performance payment company main responsible that are provided byterms undertakes to person expected to be the companytransfer refunded to and related customers obligations the contract (4) The revenue recognized in the current period included in the book value of contract liabilities at the beginning of the period is 6857.14 yuan. 2. Investment income Projects Current period Same period lastyear Investment income from disposal of long-term equity investment 136518.90 568863.59 Dividend income from investment in other equity instruments during the holding period 778495.00 777600.00 Total 915013.90 1346463.59 15、 Other supplementary information （1） Non recurring gains and losses 1. Detailed statement of non recurring gains and losses Projects money explain Gains and losses on disposal of non current assets including the write off part of the provision for asset impairment -151762085.94 Government subsidies included in the current profit and loss except for government subsidies closely related to the normal business of the company in line with national policies and regulations enjoyed in accordance with determined standards and having a sustained impact on the company's profit and loss In addition to the effective hedging business related to the normal business of the company the gains and losses from changes in fair value arising from the holding of financial assets and financial liabilities by non-financial enterprises 16621332.22 and the gains and losses arising from the disposal of financial assets and financial liabilities Capital occupancy fees charged to non-financial enterprises included in current profits and losses Gains and losses from entrusting others to invest or manage assets Gains and losses from entrusted loans Loss of assets due to force majeure such as natural disasters Reversal of provision for impairment of receivables subject to separate impairment test The investment cost of subsidiaries associates and joint ventures obtained by the enterprise is less than the income from the fair value of the identifiable net assets of the invested entity at the time of obtaining the investment Current net profit and loss of subsidiaries arising from business combination under the same control from the beginning of the period to the merger date 1852025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Gains and losses on non monetary asset exchange Gains and losses on debt restructuring One-time expenses incurred by the enterprise because the relevant business activities are no longer sustainable such as expenses for resettling employees etc One-time impact on current profit and loss due to the adjustment of tax accounting and other laws and regulations Share based payment expenses confirmed at one time due to cancellation and modification of equity incentive plan For cash settled share based payments gains and losses arising from changes in the fair value of employee salaries payable after the vesting date Gains and losses arising from changes in the fair value of investment real estate measured subsequently using the fair value model Gains from transactions with significantly unfair transaction prices Gains and losses arising from contingencies unrelated to the normal business operation of the company Custody fee income from entrusted operation Other non operating income and expenses other than the above items 940511.89 Other profit and loss items that meet the definition of non recurring profit and loss Sub total -134200241.83 Less: impact of enterprise income tax (the decrease of income tax is expressed by "-") 210384.02 Impact on minority shareholders' equity (after tax) -13705.11 Net non recurring gains and losses attributable to owners of the parent company -134396920.74 2. According to the definitions and principles the non recurring gains and losses listed in the explanatory announcement on information disclosure of companies offering securities to the public No.1 - non recurring gains and losses (revised in 2023) are defined as recurring gains and losses Projects money reason Refund of handling fee for Continuous occurrence in each year withholding individual income tax 31652.46 not accidental is recognized asrecurring gains and losses （2） Return on equity and earnings per share 1. Details Weighted average net Earnings per share (yuan/share) Profit during the reporting period assets Basic earnings per Diluted earnings per Yield (%) share share Net profit attributable to ordinary shareholders of the company 2.81 0.0988 0.0988 Net profit attributable to ordinary shareholders of the company after deducting non recurring gains and 6.58 0.2317 0.2317 losses 2. Calculation process of weighted average return on net assets Projects Serial number Current period 1862025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Projects Serial number Current period Net profit attributable to ordinary shareholders of the company A 99956003.75 Non recurring gains and losses B -134396920.74 Net profit attributable to ordinary shareholders of the company after deducting non recurring gains and losses C=A-B 234352924.49 Net assets at the beginning of the period attributable to ordinary shareholders of the company D 3512112493.42 New net assets attributable to ordinary shareholders of the company such as issuance of new shares or debt to equity swap E Cumulative months from the next month of new net assets to the end of the reporting period F Net assets attributable to ordinary shareholders of the company reduced by repurchase or cash dividend G Cumulative months from the next month of net assets reduction to the end of the reporting period H other I 254699.21 other Cumulative months from the next month of increase or decrease in net assets to the end of the J 6 reporting period Months during the reporting period K 12 Weighted average net assets L=D+A/2+e x f/K-Gx H/K+I x J/K 3562217844.90 Weighted average return on equity M=A/L 2.81% Weighted average return on net assets after deducting non recurring gains and losses N=C/L 6.58% 3. Calculation process of basic earnings per share and diluted earnings per share (1) Calculation process of basic earnings per share Projects Serial number Current period Net profit attributable to ordinary shareholders of the company A 99956003.75 Non recurring gains and losses B -134396920.74 Net profit attributable to ordinary shareholders of the company after deducting non recurring gains and losses C=A-B 234352924.49 Total number of shares at the beginning of the period D 1011660000.00 Increase in the number of shares due to the conversion of provident fund into share capital or stock dividend E distribution Issuance of new shares or debt to equity swap to increase the number of shares F Cumulative months from the next month after the increase of shares to the end of the reporting period G Decrease in the number of shares due to repurchase H Cumulative months from the next month after the reduction of shares to the end of the reporting period I Number of share withdrawals during the reporting period J Months during the reporting period K 12 1872025 Annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Projects Serial number Current period Weighted average number of ordinary shares outstanding L=D+e+F X G/K-H xI/K-J 1011660000.00 Basic earnings per share M=A/L 0.0988 Basic earnings per share after deducting non recurring gains and losses N=C/L 0.2317 (2) Calculation process of diluted earnings per share The calculation process of diluted earnings per share is the same as that of basic earnings per share. 188

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