Stock Code: 000029 200029 Stock Name: SPG SPG-B Announcement No. 2020-064

SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE &

PROPERTIES (GROUP) CO. LTD.

INTERIM REPORT 2020 (SUMMARY)

Part I Important Notes

This Summary is based on the full text of the Interim Report of ShenZhen Special Economic Zone Real Estate & Properties (Group)

Co. Ltd. (together with its consolidated subsidiaries the “Company” except where the context otherwise requires). In order for a full

understanding of the Company’s operating results financial condition and future development plans investors should carefully read

the aforesaid full text which has been disclosed together with this Summary on the media designated by the China Securities

Regulatory Commission (the “CSRC”).

Except for the following directors all the other directors attended in person the Board meeting for the review of this Report and its

summary.Name Office title

Reason for not attending

meeting in person

Proxy

Independent auditor’s modified opinion:

□ Applicable √ Not applicable

Board-approved interim cash and/or stock dividend plan for ordinary shareholders:

□ Applicable √ Not applicable

The Company has no interim dividend plan either in the form of cash or stock.

Board-approved interim cash and/or stock dividend plan for preferred shareholders:

□ Applicable √ Not applicable

This Report and its summary have been prepared in both Chinese and English. Should there be any discrepancies or

misunderstandings between the two versions the Chinese versions shall prevail.Part II Key Corporate Information

1. Stock Profile

Stock name SPG SPG-B Stock code 000029 200029

Stock exchange for stock listing Shenzhen Stock Exchange

Contact information Board Secretary Securities Representative

Name Tang Xiaoping Luo Yi

Office address 47/F SPG Plaza Renmin South Road 47/F SPG Plaza Renmin South Road

Shenzhen Guangdong P.R.China Shenzhen Guangdong P.R.China

Tel. （86 755）82293000-4638 （86 755）82293000-4715

E-mail address tangxiaoping0086@126.com spg@163.net

2. Key Financial Information

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

H1 2020 H1 2019 Change (%)

Operating revenue (RMB) 596258495.40 1251337802.57 -52.35%

Net profit attributable to the listed

company’s shareholders (RMB)

97274985.72 333155843.41 -70.80%

Net profit attributable to the listed

company’s shareholders before exceptional

gains and losses (RMB)

85184270.99 322865954.53 -73.62%

Net cash generated from/used in operating

activities (RMB)

-212242798.59 685675245.10 -130.95%

Basic earnings per share (RMB/share) 0.0962 0.3293 -70.79%

Diluted earnings per share (RMB/share) 0.0962 0.3293 -70.79%

Weighted average return on equity (%) 2.68% 9.81% -7.13%

30 June 2020 31 December 2019 Change (%)

Total assets (RMB) 4485810299.86 4909669536.09 -8.63%

Equity attributable to the listed company’s

shareholders (RMB)

3597595143.65 3666874569.99 -1.89%

3. Shareholders and Their Holdings as at the End of the Reporting Period

Unit: share

Number of ordinary shareholders 76442

Number of preferred

shareholders with resumed

voting rights (if any)

0

Top 10 shareholders

Name of

shareholder

Nature of

shareholder

Shareholding

percentage

Number of

shares

Restricted shares

Shares in pledge or frozen

Status Shares

Shenzhen

Investment

Holdings Co.Ltd.State-owned

legal person

63.55% 642884262

Shandong Gold

Financial

Holding Capital

Management

Co. Ltd. －

Shandong Gold

Financial

Holding

Sustaining Fund

1

Domestic

non-state-owne

d legal person

1.02% 10300000

Lu Zhigao

Domestic

natural person

0.32% 3246949

Tan Shiqing

Domestic

natural person

0.13% 1286701

Yang Shuilian

Domestic

natural person

0.13% 1273700

Yang Jianxiong

Domestic

natural person

0.12% 1255750

Central Huijin

Asset

Management

Co. Ltd.

State-owned

legal person

0.12% 1165500

Peng Wei

Domestic

natural person

0.11% 1129082

Wu Haoyuan

Foreign natural

person

0.11% 1109300

Guotai Junan

Securities

(Hong Kong)

Limited

Foreign legal

person

0.10% 1015683

Related or acting-in-concert

parties among the shareholders

above

The Company has found no related parties or acting-in-concert parties as defined in the

Administrative Measures for Shareholding Changes in Listed Companies among the

shareholders above.Shareholders involved in

securities margin trading (if any)

The fourth shareholder holds all his shares in the Company in his accounts of collateral securities

for margin trading. And the third shareholder holds some of his shares in the Company in such

accounts.

4. Change of the Controlling Shareholder or the Actual Controller in the Reporting Period

Change of the controlling shareholder in the Reporting Period:

□ Applicable √ Not applicable

The controlling shareholder remained the same in the Reporting Period.

Change of the actual controller in the Reporting Period:

□ Applicable √ Not applicable

The actual controller remained the same in the Reporting Period.

5. Number of Preferred Shareholders and Shareholdings of Top 10 of Them

□ Applicable √ Not applicable

No preferred shareholders in the Reporting Period.

6. Corporate bonds

Does the Company have any corporate bonds publicly offered on the stock exchange which were outstanding before the date of this

Report’s approval or were due but could not be redeemed in full?

No.Part III Operating Performance Discussion and Analysis

1. Business Overview of the Reporting Period

Is the Company subject to any industry-specific disclosure requirements?

The Company is subject to the Guideline No. 3 of the Shenzhen Stock Exchange on Information Disclosure by Industry—for Listed

Companies Engaging in Real Estate.

For the first half of 2020 the Company recorded operating revenue of RMB596 million down

52.35% year-on-year; a profit before tax of RMB141 million down 68.40% year-on-year; and a net

profit attributable to the listed company’s shareholders of RMB97 million down 70.80%

year-on-year. As at 30 June 2020 total assets stood at RMB4486 million down 8.63% from the

beginning amount; total liabilities stood at RMB1030 million down 25.63% from the beginning

amount; and the debt/asset ratio was 22.96% down by 5.25 percentage points from the beginning

ratio.Since its abrupt occurrence at the beginning of 2020 COVID-19 has continued to spread

throughout the whole world dragging global economy into the most severe recession since the

Great Depression. The central government has stepped up effort in regular epidemic prevention and

control and promoted the resumption of work and production on all fronts. In the first quarter with

the substantial decline in domestic consumption and investment the economy faced greater

downward pressure; in the second quarter the real estate market operation exhibited a momentumof recovery. In terms of policy the country has continued the orientation that “Houses are for livingin not for speculating on” and implemented real estate policies appropriate to local situation

leading to an obvious trend of differentiation between urban regions.

Facing the complicated and tough macro-economic environment and the fierce market competition

the Company’s operation team has braved the challenges and implemented policies in a targeted

way. They have balanced between the epidemic prevention and control and business development

and tightened effort in all work in a bid to counter the negative impact brought by COVID-19. In

general the Company has carried out its work orderly in all aspects including the development of

main businesses operations management assets restructuring Party building epidemic prevention

and control and production safety.(I) Highlights in Main Business Development

1. Property sales reached the target. To weaken the negative impact of COVID-19 on property sales

the Company carried out promotion and developed customers through multiple channels including

placing equal focus on online and offline promotion. During the Reporting Period the Company

outperformed the target for new contract-based sales laying a solid foundation for the

accomplishment for the target of the whole year.

2. Projects were advanced steadily. As at the end of the Reporting Period landscaping of Chuanqi

Donghu Mingyuan in Shenzhen was improved and handed over and the construction and

installation for the residence gate were completed; main works of Shantou Tianyuewan were

completed and landscaping of the mountain park was completed.(II) Stable Operations Management with Improvement

1. Financial management was regulated and effective. While ensuring the satisfaction of need for

working capital the Company fully increased the efficiency of idle fund. It strengthened

communication with its cooperating banks to withdraw the fund from property sales. In early May

the Company successfully executed the cash dividends for 2019. During the Reporting Period the

Company gained an income of more than RMB20 million from wealth management including

structured deposits and agreement-based deposits with banks.

2. Property leasing moved ahead under pressure. Under the double impact of COVID-19 and

economic downturn situations such as cancellation of leasing and reduction of leasing size have

been frequent. Focusing on customers’ needs the Company made every effort to retain existing

customers and develop new customers in a bid to expand business while maintaining the base.

3. Breakthroughs were made in problems carried over from the past. During the Reporting Period

the Company sped up the collection of overdue payment in lawsuits involving overdue rentals and

management fees and won the lawsuits with executable judgement.

4. Solid achievements were made in cost control. By firmly sticking to a full-cost whole-process

and penetrating management concept in production and operation the Company continued to

strengthen project cost control with satisfying results achieved.(III) Continuous Advancement of Assets Restructuring

During the Reporting Period the Company remained in share trading suspension due to major

assets restructuring. It continued to proactively work on fundamental matters including due

diligence for restructuring additional audit additional evaluation and the updating of restructuring

related material and information. The Company disclosed the progress of those matters strictly in

accordance with regulations and went through the procedures for share trading suspension and

resumption. It continued to keep in touch with all restructuring related parties and strengthened

communication with regulatory authorities. In addition it answered calls from investors patiently

and attentively and replied to their questions on irm.cninfo.com.cn winning their understanding

and support.(IV) Realistic and Pragmatic Approach for Party Building

The Company persisted in synchronous research arrangement and advancement for its efforts in

Party building and business. It gave full play to the leading role of the Party committee in

controlling the direction managing the overall situation and ensuring implementation. The

Company attached great importance to the Party’s political theory learning and education and

ensured regular and policy-based learning in the Theory Center Group of its Party committee. All

its Party committee and branches strictly implemented the “Three Meeting One Lesson” System

and the “Five-One” Project for Party members’ education promoted Xi Jinping Thought on

Socialism with Chinese Characteristics for a New Era into the Company’s front line and

consolidated the results of themed education. The Company continued to improve the

accountability for the development of honest and non-corruptible practice. It established a list of

key tasks for such development strengthened the “Two responsibility” and continuously enforced

full and strict discipline over its Party members.(V) Marked Achievements in Epidemic Prevention and Control

During the Reporting Period there was no cluster infection among the Group’s more than 1900

employees over 30 residences operated and managed by its property management subsidiary and

thousands of office workers at SPG Plaza. Additionally the Company proactively fulfilled its social

responsibilities as a state-owned enterprise. During the Reporting Period it cut and exempted

property rentals of more than RMB10 million and donated RMB500000 for the epidemic

prevention and control in Hubei.(VI) Stable and Orderly Safe Production

The Company upheld the safety concept in its entire production process implemented the

accountability system for production safety and strengthened the roles in production safety. It kept

a tight grip on the identification and management of safety hazards persisted in zero tolerance on

safety hazards and reinforced its defense line for production safety. Through a combination of

measures the Company conducted training to promote safety knowledge to its employees as a

tangible step to strengthen the safety awareness among all its staff. It continued to organize

emergency drills on a regular basis to improve its emergency management capability in all aspects.

During the Reporting Period the Company’s project construction and the production situations of

its subsidiaries were stable and orderly without any major safety accident.

Currently China is gradually getting rid of the negative impact brought by COVID-19. While its

economic operation takes on a momentum of growth towards recovery the future situation remains

complicated and tough with great instability and uncertainties. The Company will actively adapt to

the macro economic development trend and stick to the concept of pursuing progress while

ensuring stability and of seeking continuous development. It will continue to focus on the goal of

building a competitive and professional real estate enterprise and speed up the development and

construction of existing land and projects. It will prudently look for new investment opportunities

and seek a path of high quality development in the context of complicated and changeable external

environment and intense market competition.

Centering around the goal for 2020 the Company will set the tone of “improving operationsadvancing restructuring ensuring safety and strengthening Party building” and make every effort in

the following four aspects.(I) Achieving Business Stability with Focus on Business

The Company will focus on project sales and ensure the accomplishment of its annual sales target.It will make full effort to guarantee the quality and progress of its project construction and develop

projects with fine quality. It will closely follow the land market updates and strive to develop new

land or make breakthroughs in project development within the year. In terms of property leasing

the Company will endeavor to reach the year’s leasing target by all possible means. Its subsidiaries

should drive the resumption of work and production in a steady pace and strive towards the annual

targets.(II) Ensuring Orderly Progress of Key Work through Rational Coordination

The Company will keep close watch on the trends of capital market and regulatory policies and

strengthen communication with regulatory authorities. It will perform its obligation of information

disclosure properly handle its investor relations and drive the restructuring process together with

all parties of the major assets restructuring according to regulations. The Company will continue to

improve the allocation of human resources strengthen its staff team building optimize the age

structure and knowledge structure of its talent team and maintain the strength and execution of the

team. It will work on the formulation of its “14th Five-Year” strategic plan as a blueprint for the

new journey of the next five-year plan. It will make solid steps to ensure the sustainability and

stability of its routine operations management and continue to enhance its management quality.(III) Implementing the Epidemic Prevention and Control and Ensuring Production Safety

through Persistent Effort

The Company will always be on full alert and implement the epidemic prevention and control with

high standards and strict requirements. It will ensure targeted and strong epidemic prevention and

control and make full effort in the battle against the virus. The Company will promote the concept

of production safety continue to improve the production safety management system and advance

the standardization of production safety and the building of the “double” prevention mechanism. It

will strengthen the accountability for production safety step up effort in the identification of safety

hazards and intensity safety management in key areas so as to prevent production safety accident

and create favorable conditions for the accomplishment of the year’s business target.(IV) Strengthening the Development of Honest and Non-corruptible Practice Led by Party

Building

The Company will further study and implement Xi Jinping Thought on Socialism with Chinese

Characteristics for a New Era and put into effect the guiding principles of the Party’s 19th National

Congress and the second and third plenary sessions of its 19th Central Committee. It will strengthen

the roles of political discipline and political rules intensify supervision discipline implementation

and accountability and extend the strict discipline over the Party to its grassroots level. The

Company will fully implement the decisions and arrangements of the superior Party committees

exert its leading role in controlling the direction managing the overall situation and ensuring

implementation as a Party committee of a state-owned enterprise and integrate Party leadership into

its corporate governance to lead itself into high quality development.

2. Matters Related to Financial Reporting

(1) Changes to Accounting Policies Accounting Estimates or Measurement Methods Compared to the Last

Accounting Period

√ Applicable □ Inapplicable

On July 5 2017 the Ministry of Finance revised and issued the "Accounting Standards for Enterprises No.14-Revenue".

According to the required of the Ministry of Finance the group implemented the above new standard and changed the

accounting policy from January 1 2020 the main conditions as follows.The Company recognizes revenue when it has satisfied the performance obligation under the contract that is when thecustomer has obtained the right to control the relevant goods or services “Obtaining the right to control the relevantgoods or services” means that it is able to dominate the use of the goods or services and derive almost all economic

benefits therefrom. When certain conditions are met the Group shall perform its performance obligations within a

certain period of time; otherwise it shall perform its performance obligations at a certain point in time. If a contract

contains two or more performance obligations the company shall allocate the transaction price to each individual

performance obligation in accordance with the relative proportion of the stand-alone selling price of the goods or

services promised by each individual performance obligation on the date of the contract The Company measures

revenue based on the transaction price allocated to each individual performance obligation.The group adjusted relevant accounting policies in accordance with the specific provisions of the new revenue standards

on specific matters or transactions for example: contractual cost quality assurance distinction between principal and

agent sales with sales return clauses additional purchase options intellectual property license repurchase arrangement

advances from customers and handling of initial fee without refund etc.The Group has the right to receive consideration by transferring goods to customers and this right depends on factors

other than the passage of time as contractual assets. The Group’s obligation to transfer goods to customers for

consideration received or receivable from customers is listed as contractual liabilities.Reclassify the tax-exclusive part of the " advance form customers" that should have the delivery obligation to the

customer to contractual liabilities and reclassify the tax part to tax payable. The company will adjust the retained

earnings at the beginning of the year and the amount of other related items in the financial statements based on the

cumulative impact of the first implementation of the new income standard when preparing the financial reports for 2020

and each period and will not adjust the information for the comparable period. Please refer the table below

Item Dec 31 2019 Jan 1 2020 Adjusted amount

Advance form

customers

159482510.43 4864243.00 -154618267.43

contractual

liabilities

151007450.32 151007450.32

Tax payable 585700815.36 589311632.47 3610817.11

(2) Retrospective Restatements due to the Correction of Material Accounting Errors in the Reporting

Period

□ Applicable √ Not applicable

No such cases.

(3) Changes to the Scope of Consolidated Financial Statements Compared to the Last Accounting Period

□ Applicable √ Not applicable

No such changes for the Reporting Period.