ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Third Quarterly Report 2021

Stock Code: 000029 200029 Stock Name: SPG SPG-B Announcement No.: 2021-046

SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE

& PROPERTIES (GROUP) CO. LTD.THIRD QUARTERLY REPORT 2021

Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. (hereinafter referred to as the

“Company”) and all the members of the Company’s Board of Directors hereby guarantee that the contents of this

Report are true accurate and complete and free of any misrepresentations misleading statements or material

omissions.Important Notes:

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

management of the Company hereby guarantee that the contents of this Report are true accurate and complete and

free of any misrepresentations misleading statements or material omissions and collectively and individually

accept legal responsibility for such contents.

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

(equivalent to financial manager) hereby guarantee that the financial statements carried in this Report are true

accurate and complete.

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

□Yes √ No

I Key Financial Information

(I) Key Accounting Data and Financial Indicators

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

Q3 2021 YoY change (%) Q1-Q3 2021 YoY change (%)

Operating revenue (RMB) 272065605.11 -56.22% 966663823.58 -20.61%

Net profit attributable to the listed

29640906.70-70.82%163539812.93-17.75%

company’s shareholders (RMB)

Net profit attributable to the listed

company’s shareholders before exceptional 29576289.10 -70.78% 162466061.77 -17.87%

gains and losses (RMB)

Net cash generated from/used in operating

————-1264096374.55-1397.71%

activities (RMB)

Basic earnings per share (RMB/share) 0.1004 -4.47% 0.1617 -17.71%

Diluted earnings per share (RMB/share) 0.1004 -4.47% 0.1617 -17.71%

Weighted average return on equity (%) 0.77% -1.99% 4.26% -8.48%

31 December

30 September 2021 Change (%)

2020

1ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Third Quarterly Report 2021

Total assets (RMB) 6181890175.11 4936916746.74 25.22%

Equity attributable to the listed company’s

3873072154.753797512488.221.99%

shareholders (RMB)

(II) Exceptional Gains and Losses

√ Applicable □ Not applicable

Unit: RMB

Item Q3 2021 Q1-Q3 2021 Note

Non-operating income and expense other than the

86156.801431668.21

above

Less: Income tax effects 21539.20 357917.05

Total 64617.60 1073751.16 --

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

□ Applicable √ Not applicable

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

1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss Items:

□ Applicable √ Not applicable

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

√ Applicable □ Not applicable

Unit: RMB

Key income statement item Q1-Q3 2021 Q1-Q3 2020 Change (%) Reason for change

Operating revenue 966663823.58 1217660802.78 -20.61% Decrease in carryforwards of property

sales

Marketing expense 31229738.10 49259539.14 -36.60% Adjustment to the marketing pace

Finance costs -17527527.04 -6794077.29 -157.98% Increase in interest income

Return on investment 1889160.47 15816818.60 -88.06% Decrease in income from investments in

wealth management products

Key cash flow statement item Q1-Q3 2021 Q1-Q3 2020 Change (%) Reason for change

Net cash generated from/used in -1264096374.55 97409818.45 -1397.71% Payment for land

operating activities

Net cash generated from/used in -951251423.49 1020818810.32 193.19% Purchase of monetary funds

investing activities

Net cash generated from/used in 243164282.22 -166923900.00 245.67% Project company’s receipt of loan from

financing activities minority shareholder

Key balance sheet statement 30 September 2021 31 December 2020 Change (%) Reason for change

Monetary assets 702463353.84 2687465070.01 -73.86% Purchase of monetary funds and

payment for land

Inventories 3977470978.35 1220464112.56 225.90% Increase in property development

projects

Accounts payable 100660778.43 176926614.28 -43.11% Payment for engineering service

Contract liabilities 322759572.82 196786977.19 64.01% Increase in property pre-sale revenue

II Shareholder Information

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

as Holdings of Top 10 Shareholders

Unit: share

2ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Third Quarterly Report 2021

Number of preference

Number of ordinary shareholders 57265 shareholders with resumed 0

voting rights (if any)

Top 10 shareholders

Shares in pledge

Nature of Shareholdin Total shares Restricted

Name of shareholder marked or frozen

shareholder g percentage held shares held

Status Shares

Shenzhen Investment Holdings Co. State-owned

57.19%578595836

Ltd. corporation

Domestic

Shenzhen State-Owned Equity

non-state-owned 6.35% 64288426

Operation and Management Co. Ltd.legal person

Domestic natural

Yang Jianmin 0.37% 3766777

person

Domestic natural

Pan Jun 0.32% 3254300

person

Domestic natural

Lin Weirong 0.31% 3128600

person

Domestic natural

Wang Yulan 0.23% 2288391

person

Domestic natural

Liu Yuqing 0.21% 2100201

person

Domestic

Shenzhen Bao'an Songgang Huamei

non-state-owned 0.18% 1835300

Industry Company

legal person

Domestic natural

Zang Xiangfeng 0.16% 1614363

person

Domestic natural

He Qiao 0.16% 1575000

person

Top 10 unrestricted shareholders

Shares by type

Name of shareholder Unrestricted shares held

Type Shares

RMB-denominated

Shenzhen Investment Holdings Co. Ltd. 578595836 578595836

ordinary stock

Shenzhen State-Owned Equity Operation and RMB-denominated

6428842664288426

Management Co. Ltd. ordinary stock

RMB-denominated

Yang Jianmin 3766777 3766777

ordinary stock

RMB-denominated

Pan Jun 3254300 3254300

ordinary stock

RMB-denominated

Lin Weirong 3128600 3128600

ordinary stock

RMB-denominated

Wang Yulan 2288391 2288391

ordinary stock

RMB-denominated

Liu Yuqing 2100201 2100201

ordinary stock

RMB-denominated

Shenzhen Bao'an Songgang Huamei Industry Company 1835300 1835300

ordinary stock

RMB-denominated

Zang Xiangfeng 1614363 1614363

ordinary stock

RMB-denominated

He Qiao 1575000 1575000

ordinary stock

Related or acting-in-concert parties among the Among the top 10 shareholders of the Company Shenzhen State-Owned

shareholders above Equity Operation and Management Co. Ltd. is the wholly-owned

subsidiary of Shenzhen Investment Holdings Co. Ltd. The Company does

3ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Third Quarterly Report 2021

not know whether there exists related-party relationship among the other

shareholders or whether they are persons acting in concert as prescribed

in the Administrative Measures for the Acquisition of Listed Companies.Among the top 10 shareholders the third shareholder holds 1466400

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

holds 1969900 shares of the Company in his credit security account; the

seventh shareholder holds 2010201 shares of the Company in his credit

Top 10 shareholders engaged in securities margin

security account; the eighth shareholder holds 1835300 shares of the

trading (if any)

Company in its credit security account; the ninth shareholder holds

1600663 shares of the Company in its credit security account; the tenth

shareholder holds 1279600 shares of the Company in his credit security

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

□ Applicable √ Not applicable

III Other Significant Events

√ Applicable □ Not applicable

The Measures for the Management of Employees' Co-investment and the Measures for the Management of Employees'

Co-investment of Linxijun Project were deliberated and approved at the 63rd Meeting of the 7th Board of Directors and the 2021

First Extraordinary General Meeting. For more details see the Announcement on Resolutions of the 63rd Meeting of the 7th Board

of Directors (Announcement No. 2021-023) and the Announcement on Resolutions of the 2021 First Extraordinary General Meeting

of Shareholders (Announcement No. 2021-026) disclosed on 1 July and 17 July 2021. During the Reporting Period the

co-investment employees followed the investment in projects through establishing a partnership enterprise and completed the

payment of co-investment subscription funds.During the Reporting Period the Company received the Letter of Commitment on Avoiding Horizontal Competition from the

controlling shareholder Shenzhen Investment Holdings Co. Ltd. which took effect since 27 September 2021. For more details see

the Announcement on Receiving the Letter of Commitment on Avoiding Horizontal Competition from the Controlling Shareholder

(Announcement No. 2021-032) disclosed by the Company on 11 September 2021 and the Announcement on Resolutions of the 2021

First Extraordinary General Meeting (Announcement No. 2021-34) disclosed by ShenZhen Properties & Resources Development

(Group) Ltd. on 27 September 2021.In June 2021 the Company purchased wealth management products with its own funds of RMB1.3 billion. For more details see the

Announcement on Progress of Purchasing Wealth Management Products with its Own Funds (Announcement No. 2021-022)

disclosed by the Company on 4 June 2021. Above wealth management products have been partly redeemed during the Reporting

Period. For more details see the Announcement on Progress of Purchasing Wealth Management Products with its Own Funds

(Announcement No. 2021-036) disclosed by the Company on 24 September 2021.

On 28 September 2021 the Company participated in the land use right assignment activity through quotation held by the Land and

Mining Rights Business Branch of Shenzhen Exchange Group Co. Ltd. and won the use right of No. A511-0039 state-owned land

with RMB965 million. For more details see the Announcement on Winning the Bid of State-Owned Land Use Right (Announcement

No. 2021-039) disclosed by the Company on 30 September 2021.IV Quarterly Financial Statements

(I) Financial Statements

1. Consolidated Balance Sheet

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

30 September 2021

Unit: RMB

Item 30 September 2021 31 December 2020

Current assets:

Monetary assets 702463353.84 2687465070.01

Settlement reserve

Loans to other banks and financial

institutions

4ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Third Quarterly Report 2021

Held-for-trading financial assets 510767599.33

Derivative financial assets

Notes receivable 11114994.95 35438045.34

Accounts receivable 55993577.86 59590944.06

Receivables financing

Prepayments 11517698.85 3205534.51

Premiums receivable

Reinsurance receivables

Receivable reinsurance contract

reserve

Other receivables 16225307.09 32745043.84

Including: Interest receivable

Dividends receivable 1052192.76 1052192.76

Financial assets purchased under

resale agreements

Inventories 3977470978.35 1220464112.56

Contract assets

Assets held for sale

Current portion of non-current assets

Other current assets 128265569.09 102907134.79

Total current assets 5413819079.36 4141815885.11

Non-current assets:

Loans and advances to customers

Debt investments

Other debt investments

Long-term receivables

Long-term equity investments 377489.65 377489.65

Investments in other equity

37811287.0537510860.51

instruments

Other non-current financial assets

Investment property 596946146.28 616365621.53

Fixed assets 26322494.00 28039978.43

Construction in progress

Productive living assets

Oil and gas assets

Right-of-use assets

Intangible assets

Development costs

Goodwill

Long-term prepaid expense 1235547.16 61667.53

Deferred income tax assets 105378131.61 112745243.98

Other non-current assets

Total non-current assets 768071095.75 795100861.63

Total assets 6181890175.11 4936916746.74

Current liabilities:

Short-term borrowings 52261448.28 76893995.94

Borrowings from the central bank

Loans from other banks and financial

5ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Third Quarterly Report 2021

institutions

Held-for-trading financial liabilities

Derivative financial liabilities

Notes payable 309963085.83

Accounts payable 100660778.43 176926614.28

Advances from customers 7234825.01 5940092.15

Contract liabilities 322759572.82 196786977.19

Financial assets sold under

repurchase agreements

Customer deposits and deposits from

other banks and financial institutions

Payables for acting trading of

securities

Payables for underwriting of

securities

Employee benefits payable 56949499.33 60467834.09

Taxes and levies payable 534560448.32 459709646.95

Other payables 600816147.79 277105129.74

Including: Interest payable 16535277.94 16535277.94

Dividends payable

Fees and commissions payable

Reinsurance payables

Liabilities directly associated with

assets held for sale

Current portion of non-current

liabilities

Other current liabilities 16052821.06 8917027.07

Total current liabilities 2001258626.87 1262747317.41

Non-current liabilities:

Insurance contract reserve

Long-term borrowings

Bonds payable

Including: Preference shares

Perpetual bonds

Lease liabilities

Long-term payables 7714318.04 7480233.43

Long-term employee benefits

payable

Provisions

Deferred income

Deferred income tax liabilities 9601940.74 9601940.74

Other non-current liabilities

Total non-current liabilities 17316258.78 17082174.17

Total liabilities 2018574885.65 1279829491.58

Owners’ equity:

Share capital 1011660000.00 1011660000.00

Other equity instruments

Including: Preference shares

Perpetual bonds

Capital reserves 978244910.11 978244910.11

Less: Treasury stock

6ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Third Quarterly Report 2021

Other comprehensive income 28197323.73 28163050.13

Specific reserve

Surplus reserves 218724273.67 218724273.67

General reserve

Retained earnings 1636245647.24 1560720254.31

Total equity attributable to owners of

3873072154.753797512488.22

the Company as the parent

Non-controlling interests 290243134.71 -140425233.06

Total owners’ equity 4163315289.46 3657087255.16

Total liabilities and owners’ equity 6181890175.11 4936916746.74

Legal representative: Liu Zhengyu Chief Financial Officer: Wang Jianfei Head of the financial department: Qiao Yanjun

2. Consolidated Income Statement for Q1~Q3

Unit: RMB

Item Q1~Q3 2021 Q1~Q3 2020

1. Revenues 966663823.58 1217660802.78

Including: Operating revenue 966663823.58 1217660802.78

Interest income

Insurance premium income

Fee and commission income

2. Costs and expenses 758251988.28 960778486.08

Including: Cost of sales 487064303.36 605566564.44

Interest expense

Fee and commission expense

Surrenders

Net insurance claims paid

Net amount provided as insurance contract reserve

Expenditure on policy dividends

Reinsurance premium expense

Taxes and levies 198738261.87 256360411.16

Selling expense 31229738.10 49259539.14

Administrative expense 58747211.99 56386048.63

R&D expense

Finance costs -17527527.04 -6794077.29

Including: Interest expense

Interest income 17610476.40 7502105.11

Add: Other income 1139049.16 948216.96

Return on investment (“-” for loss) 1889160.47 15816818.60

Including: Share of profit or loss of joint ventures and

associates

Income from the derecognition of financial assets at

amortized cost (“-” for loss)

Exchange gain (“-” for loss)

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

Gain on changes in fair value (“-” for loss) 8571018.86

Credit impairment loss (“-” for loss) 1167580.27

Asset impairment loss (“-” for loss) 534500.00

7ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Third Quarterly Report 2021

Asset disposal income (“-” for loss)

3. Operating profit (“-” for loss) 221178644.06 274181852.26

Add: Non-operating income 1587259.37 3428723.89

Less: Non-operating expense 155591.16 2073834.53

4. Gross profit (“-” for loss) 222610312.27 275536741.62

Less: Income tax expense 60786470.63 76660884.16

5. Net profit (“-” for net loss) 161823841.64 198875857.46

5.1 By operating continuity

5.1.1 Net profit from continuing operations (“-” for net loss) 161823841.64 198875857.46

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

5.2 By ownership

5.2.1 Net profit attributable to owners of the Company as the

163539812.93198840278.63

parent

5.2.1 Net profit attributable to non-controlling interests -1715971.29 35578.83

6. Other comprehensive income net of tax 434659.62 -5938704.24

Attributable to owners of the Company as the parent 34273.60 -6275302.44

6.1 Items that will not be reclassified to profit or loss 300426.54 -4528691.88

6.1.1 Changes caused by remeasurements on defined benefit

schemes

6.1.2 Other comprehensive income that will not be

reclassified to profit or loss under the equity method

6.1.3 Changes in the fair value of investments in other

300426.54-4528691.88

equity instruments

6.1.4 Changes in the fair value arising from changes in own

credit risk

6.1.5 Other

6.2 Items that will be reclassified to profit or loss -266152.94 -1746610.56

6.2.1 Other comprehensive income that will be reclassified

to profit or loss under the equity method

6.2.2 Changes in the fair value of other debt investments

6.2.3 Other comprehensive income arising from the

reclassification of financial assets

6.2.4 Credit impairment allowance for other debt

investments

6.2.5 Reserve for cash flow hedges

6.2.6 Differences arising from the translation of foreign

-266152.94-1746610.56

currency-denominated financial statements

6.2.7 Other

Attributable to non-controlling interests 400386.02 336598.20

7. Total comprehensive income 162258501.26 192937153.22

Attributable to owners of the Company as the parent 163574086.53 192564976.19

Attributable to non-controlling interests -1315585.27 372177.03

8. Earnings per share

8.1 Basic earnings per share 0.1617 0.1965

8.2 Diluted earnings per share 0.1617 0.1965

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

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

3. Consolidated Cash Flow Statement for Q1~Q3

Unit: RMB

8ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Third Quarterly Report 2021

Item Q1~Q3 2021 Q1~Q3 2020

1. Cash flows from operating activities:

Proceeds from sale of commodities and rendering of services 1193484545.48 1264810543.01

Net increase in customer deposits and deposits from other banks

and financial institutions

Net increase in borrowings from the central bank

Net increase in loans from other financial institutions

Premiums received on original insurance contracts

Net proceeds from reinsurance

Net increase in deposits and investments of policy holders

Interest fees and commissions received

Net increase in loans from other banks and financial institutions

Net increase in proceeds from repurchase transactions

Net proceeds from acting trading of securities

Tax and levy rebates 36956.05 30184.28

Cash generated from other operating activities 291631335.69 189648016.53

Subtotal of cash generated from operating activities 1485152837.22 1454488743.82

Payments for commodities and services 1960830478.99 335093891.09

Net increase in loans and advances to customers

Net increase in deposits in the central bank and other banks and

financial institutions

Payments for claims on original insurance contracts

Net increase in loans to other banks and financial institutions

Interest fees and commissions paid

Policy dividends paid

Cash paid to and for employees 109899447.97 112729873.31

Taxes and levies paid 259655231.62 604692731.70

Cash used in other operating activities 418864053.19 304562429.27

Subtotal of cash used in operating activities 2749249211.77 1357078925.37

Net cash generated from/used in operating activities -1264096374.55 97409818.45

2. Cash flows from investing activities:

Proceeds from disinvestment 1000000000.00

Return on investment 1889160.47 20917568.22

Net proceeds from the disposal of fixed assets intangible assets

1700.001000.00

and other long-lived assets

Net proceeds from the disposal of subsidiaries and other business

units

Cash generated from other investing activities 797803419.53

Subtotal of cash generated from investing activities 799694280.00 1020918568.22

Payments for the acquisition of fixed assets intangible assets and

1063945.3499757.90

other long-lived assets

Payments for investments

Net increase in pledged loans granted

Net payments for the acquisition of subsidiaries and other

449881758.15

business units

Cash used in other investing activities 1300000000.00

Subtotal of cash used in investing activities 1750945703.49 99757.90

Net cash generated from/used in investing activities -951251423.49 1020818810.32

3. Cash flows from financing activities:

Capital contributions received

9ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Third Quarterly Report 2021

Including: Capital contributions by non-controlling interests to

subsidiaries

Borrowings received

Cash generated from other financing activities 331178702.21

Subtotal of cash generated from financing activities 331178702.21 0.00

Repayment of borrowings

Interest and dividends paid 88014419.99 166923900.00

Including: Dividends paid by subsidiaries to non-controlling

interests

Cash used in other financing activities

Subtotal of cash used in financing activities 88014419.99 166923900.00

Net cash generated from/used in financing activities 243164282.22 -166923900.00

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

-34837.73-366192.25

equivalents

5. Net increase in cash and cash equivalents -1972218353.55 950938536.52

Add: Cash and cash equivalents beginning of the period 2669103926.82 1507189760.35

6. Cash and cash equivalents end of the period 696885573.27 2458128296.87

(II) Adjustments to the Financial Statements

1. Adjustments to the Financial Statements at the Beginning of the First Execution Year of the New

Standards Governing Leases from 2021

√ Applicable □ Not applicable

Whether the Company needs to adjust items in the balance sheet at the beginning of the year

□ Yes √ No

The reason for not adjusting balance sheet account at the beginning of the year:

In accordance with the provisions of the new leasing standards from 1 January 2021 the group chooses to recognize right-of-use

assets and lease liabilities for all leased assets at the present value of the minimum lease payment for future rent payable with the

exception of simplified short-term leases and leases of low-value assets and to recognize depreciation and interest expenses

respectively without adjusting the information for comparable periods. In practice there are not many leased assets within the group

which is the main reason to simplify short-term leases and leases of low-value assets and no longer recognize its right-of-use assets

and lease liabilities.

2. Retrospective Restatement of Previous Comparative Data due to the First Execution of the New

Standards Governing Leases from 2021

□ Applicable √ Not applicable

(III) Independent Auditor’s Report

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

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

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

25 October 2021

10