ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE &
PROPERTIES (GROUP) CO. LTD.ANNUAL REPORT 2023
【30 March 2024】
1ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
ANNUAL REPORT 2023
Part I Important Notes Table of Contents and Definitions
The Board of Directors (or the “Board”) the Supervisory Committee as well as the directors
supervisors and senior management of ShenZhen Special Economic Zone Real Estate &
Properties (Group) Co. Ltd. (hereinafter referred to as the “Company”) hereby guarantee the
factuality accuracy and completeness of the contents of this Report and its summary and
shall be jointly and severally liable for any misrepresentations misleading statements or
material omissions therein.Tang Xiaoping the Company’s General Manager Wang Jianfei the Company’s Chief
Financial Officer and Zhou Hongpu head of the Company’s financial department (equivalent
to financial manager) hereby guarantee that the Financial Statements carried in this Report
are factual accurate and complete.All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.Descriptions about the Company’s operating plans or work arrangements for the future
mentioned in this Report and its summary the implementation of which is subject to various
factors shall NOT be considered as promises to investors. Therefore investors are reminded
to exercise caution when making investment decisions.The Company has no final dividend plan either in the form of cash or stock.This Report and its summary have been prepared in both Chinese and English. Should there
be any discrepancies or misunderstandings between the two versions the Chinese versions
shall prevail.
2ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Table of Contents
Part I Important Notes Table of Contents and Defin... 2
Part II Corporate Information and Key Financial In... 6
Part III Management Discussion and Analysis ........ 11
Part IV Corporate Governance ....................... 31
Part V Environmental and Social Responsibility ..... 48
Part VI Significant Events ......................... 49
Part VII Share Changes and Shareholder Information.. 57
Part VIII Preferred Shares ......................... 64
Part IX Bonds ...................................... 65
Part X Financial Statements ........................ 66
3ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Documents Available for Reference
1. The financial statements with the personal signatures and stamps of the Company’s general
manager 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; and
3. The originals of all the documents and announcements disclosed by the Company on Securities
Times China Securities Journal and Ta Kung Pao during the Reporting Period.
4ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Definitions
Term Definition
―Shenzhen SASAC‖ or the ―Municipal The State-owned Assets Supervision and Administration
SASAC‖ Commission of the People’s Government of Shenzhen Municipal
SIHC Shenzhen Investment Holdings Co. Ltd.ShenZhen Special Economic Zone Real Estate & Properties (Group)
The ―Company‖ the ―Group‖ ―SPG‖ or
Co. Ltd. and its consolidated subsidiaries except where the context
―we‖
otherwise requires
Shenzhen Property Management Shenzhen Property Management Co. Ltd.Petrel Hotel Shenzhen Petrel Hotel Co. Ltd.Zhentong Engineering Shenzhen Zhentong Engineering Co. Ltd.Huazhan Construction Supervision Shenzhen Huazhan Construction Supervision Co. Ltd.Jianbang Group Guangdong Jianbang Group (Huiyang) Industrial Co. Ltd.Chuanqi Real Estate Development Shenzhen SPG Chuanqi Real Estate Development Co. Ltd.
5ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Part II Corporate Information and Key Financial Information
I Corporate Information
Stock name SPG SPG-B Stock code 000029 200029
Stock exchange for stock
Shenzhen Stock Exchange
listing
Company name in Chinese 深圳经济特区房地产(集团)股份有限公司
Abbr. 深房集团
Company name in English (if
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.any)
Abbr. (if any) SPG
Legal representative Tang Xiaoping
Registered address 45/F-48/F SPG Plaza Renmin South Road Luohu District Shenzhen Guangdong P.R.China
Zip code 518001
Changes of the registered
N/A
address
Office address 47/F SPG Plaza Renmin South Road Luohu District Shenzhen Guangdong P.R.China
Zip code 518001
Company website http://www.sfjt.com.cn
Email address spg@sfjt.sihc.com.cn
II Contact Information
Board Secretary Securities Representative
Name Luo Yi Hong Lu
47/F SPG Plaza Renmin South Road 47/F SPG Plaza Renmin South Road
Address Luohu District Shenzhen Guangdong Luohu District Shenzhen Guangdong
P.R.China P.R.China
Tel. （86 755）25108897 （86 755）25108837
Fax （86 755）82294024 （86 755）82294024
Email address spg@sfjt.sihc.com.cn spg@sfjt.sihc.com.cn
III Media for Information Disclosure and Place where this Report Is Lodged
Stock exchange website where this Report is disclosed Shenzhen Stock Exchange (http://www.szse.cn/)
Domestic: Securities Times China Securities Journal and
Newspaper and website where this Report is disclosed http://www.cninfo.com.cn
Overseas: Ta Kung Pao (HK)
47/F SPG Plaza 3005 Renmin South Road Luohu District Shenzhen
Place where this Report is lodged
Guangdong P.R.China
IV Change to Company Registered Information
Unified social credit code 91440300192179585N
6ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Change to principal activity of the
No change
Company since going public (if any)
On 24 March 1999 the controlling shareholder was changed from Shenzhen
Every change of controlling shareholder Investment Management Co. Ltd. to Shenzhen Construction Investment Holdings Co.since incorporation (if any) Ltd. And on 14 February 2006 it was changed to Shenzhen Investment Holdings Co.Ltd.V Other Information
The independent audit firm hired by the Company:
Name Pan-China Certified Public Accounts LLP
Office address 128 Xixi Road Lingyin Street Xihu District Hangzhou Zhejiang Province China
Accountants writing signatures Wang Huansen and Cai Xiaodong
The independent sponsor hired by the Company to exercise constant supervision over the Company in the Reporting Period:
□ Applicable □ Not applicable
The independent financial advisor hired by the Company to exercise constant supervision over the Company in the Reporting Period:
□ Applicable □ Not applicable
VI Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.□ Yes □ No
2023-over-2022 change
202320222021
(%)
Operating revenue
530887720.68634384561.42-16.31%1320790648.45
(RMB)
Net profit attributable
to the listed company’s -250839542.09 153718805.57 -263.18% 220836309.93
shareholders (RMB)
Net profit attributable
to the listed company’s
shareholders before -267984286.36 21160405.11 -1366.44% 208306710.37
exceptional gains and
losses (RMB)
Net cash generated
from/used in operating 1045037248.19 -675775998.76 254.64% -1205952107.94
activities (RMB)
Basic earnings per
-0.24790.1519-263.20%0.2183
share (RMB/share)
Diluted earnings per
-0.24790.1519-263.20%0.2183
share (RMB/share)
Weighted average
-6.52%3.88%-10.40%5.72%
return on equity (%)
Change of 31
31 December 2023 31 December 2022 December 2023 over 31 December 2021
31 December 2022 (%)
Total assets (RMB) 6485312507.46 5689769802.18 13.98% 6182498050.43
Equity attributable to
the listed company’s 3691082484.20 4004240547.70 -7.82% 3938260291.97
shareholders (RMB)
Indicate by tick mark whether the lower of the net profit attributable to the listed company’s shareholders before and after exceptional
7ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
gains and losses was negative for the last three accounting years and the latest independent auditor’s report indicated that there was
uncertainty about the Company’s ability to continue as a going concern.□ Yes □ No
Indicate by tick mark whether the lower of the net profit attributable to the listed company’s shareholders before and after exceptional
gains and losses was negative.□ Yes □ No
Item 2023 2022 Remark
Operating revenue (RMB) 530887720.68 634384561.42 N/A
Amount deducted from
0.00 0.00 N/A
operating revenue (RMB)
Operating revenue after
530887720.68 634384561.42 N/A
deduction (RMB)
VII Accounting Data Differences under China’s Accounting Standards for Business
Enterprises (CAS) and International Financial Reporting Standards (IFRS) and Foreign
Accounting Standards
1. Net Profit and Equity under CAS and IFRS
□ Applicable □ Not applicable
Unit: RMB
Net profit attributable to the listed company’s Equity attributable to the listed company’s
shareholders shareholders
2023 2022 Ending amount Beginning amount
Under CAS -250839542.09 153718805.57 3691082484.20 4004240547.70
Adjusted as per IFRS
Under IFRS -250839542.09 153718805.57 3691082484.20 4004240547.70
2. Net Profit and Equity under CAS and Foreign Accounting Standards
□ Applicable □ Not applicable
No difference for the Reporting Period.
3. Reasons for Accounting Data Differences Above
□ Applicable □ Not applicable
VIII Key Financial Information by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 109155515.74 154461263.33 90700026.78 176570914.83
8ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Net profit attributable
to the listed company’s -35653798.52 -1464384.29 686777.00 -214408136.28
shareholders
Net profit attributable
to the listed company’s
shareholders before -37833791.48 -4635117.67 -1532526.34 -223982850.87
exceptional gains and
losses
Net cash generated
from/used in operating -183238769.33 -8902178.71 128807540.45 1108370655.78
activities
Indicate by tick mark whether any of the quarterly financial data in the table above or their summations differs materially from what
have been disclosed in the Company’s quarterly or interim reports.□ Yes □ No
IX Exceptional Gains and Losses
□ Applicable □ Not applicable
Unit: RMB
Item 2023 2022 2021 Note
Gain or loss on disposal of non-current assets
9940254.23161542599.57-13451.61
(inclusive of impairment allowance write-offs)
Government grants recognised incurrent profit or loss
(exclusive ofthose that are closely related to the
Company's normal business operations and given in
440049.96559803.191669479.40
accordance with defined criteria and in compliance
with government policies and have a continuing
impact on the Company's profit or loss)
Gain or loss on assets entrusted to other entities for
7985840.509129650.5113024710.91
investment or management
Reversed portions of impairment allowances for
receivables which are tested individually for 3994030.79 482790.04
impairment
Gain or loss on debt restructuring 2610128.31
Non-operating income and expense other than the
393461.441094190.561542604.01
above
Less: Income tax effects 5639314.23 41451680.41 4176533.19
Non-controlling interests effects (net of tax) -30421.58 926291.27
Total 17144744.27 132558400.46 12529599.56 --
Details of other gains and losses that meet the definition of exceptional gain/loss:
□ Applicable □ Not applicable
No such cases for 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
Item Amount involved (RMB) Reason
This item is recognised as a recurrent
Return of handling fee for personal gain or loss because it occurs
68364.83
income tax withheld consistently from year to year and is not
episodic in nature
9ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
This item is recognised as a recurrent
gain or loss because it occurs
Over-deduction in the calculation of VAT 58857.60
consistently from year to year and is not
episodic in nature
10ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Part III Management Discussion and Analysis
I Industry Overview for the Reporting Period
The Company is subject to the information disclosure requirements for the real estate industry in the Disciplinary and Regulatory
Guideline No. 3 of the Shenzhen Stock Exchange for Listed Companies—Industry-specific Information Disclosure.In 2023 due to geo-frictions and trade protectionism the global supply chain sector faced a reshuffle and the
world economic growth slowed down. The policy of the real estate sector continued to be relaxed. Although the
property market turnover picked up in the fourth quarter the relationship between supply and demand has
changed significantly. The market rebound was not sustainable and weak.II Principal Activity of the Company in the Reporting Period
The Company is subject to the information disclosure requirements for the real estate industry in the Disciplinary and Regulatory
Guideline No. 3 of the Shenzhen Stock Exchange for Listed Companies—Industry-specific Information Disclosure.The Company primarily develops residential properties. Its available-for-sale projects are mainly located in
Shenzhen Huizhou and Shantou. They are: the Chuanqi Donghu Mingyuan project (sold out during 2023) the
Cuilinyuan project and the Guangmingli project (residential units sold out as soon as they became available for
sale during 2023) in Shenzhen the Linxinyuan project located in a place in Huizhou that is close to Shenzhen and
the Tianyuewan project the Yuejing Dongfang project and the Jinyedao project in Shantou. In addition the
Company’s under-construction projects are the Guangmingli project and the Linxinyuan project.New additions to the land bank:
Considerati
Floor area Total land on of the
Name of
Planned Site area with plot
How the The
price Company’s
land lot or Location ratio land is Company’s use of land （㎡） (RMB’000 interest
project obtained interest
（㎡） 0) (RMB’000
0)
Cumulative land bank:
Floor area available for
Name of project/area Site area（0000 ㎡） Floor area（0000 ㎡）
development（0000 ㎡）
Xinfeng Building in Shantou 0.59 2.66 2.66
Linxinyuan Phase II 2.57 7.72 7.72
Linxinyuan Phase III 4.31 9.57 9.57
Linxinyuan Phase IV 3.23 6.45 6.45
Total 10.70 26.40 26.40
Development status of major projects:
Fl C
oo u
Time for Planned r m Expected CumulatThe
Nam commen % % are ul total ive
City Loc Comp floor area
e of cement deve cons Site area with plot a ati investmen investme/reg atio Status any’s
proj of lope truct （㎡） co ve t nt
ion n interes ratio
ect construc d ed mp ly (RMB’00 (RMB’0t （㎡）
tion let co 00) 000)
ed m
in pl
11ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
the et
Cu ed
rre flo
nt or
Pe ar
rio ea
d （（㎡㎡）
）
Linx Frame
Hui inyu work
Hui 11 June
zho an in 51% 96% 96% 64278 159761 0 0 115750 111077
yang
u Phas constr 2021
e I uction
Gua Frame
SPG
She ngm work 19
Gua
nzh ing in 100% January 81% 81% 10721 53605 0 0 151758 122759
ngm
en Dist constr 2022
ingli
rict uction
Sales status of major projects:
Pre-
sale/sa
Pre-
Floor les
Cumulat sale/sale Floor
Floor Floor area revenu
The ively
s Cumulat area
Name area area pre-
e
revenue ively
City Loc Comp pre- settled
of Stat with availabl sold/sol
settled
sold/sol generate settled /reg atio any’s in the
projec us plot e for d in the
in the
d floor in the floor ion n interes Current Curre
t ratio sale Current
t area
Current area Period
Period nt （㎡） （㎡） Period (㎡)
（㎡） （㎡） Period
（㎡） (RMB’0
(RMB
000)
’0000
)
Chuan
qi Luo Rea
She
Dongh hu dy
nzh 100% 55727 32857 32857 194 1483 32857 194 1483
u Dist for
en
Mingy rict sale
uan
Lon
Rea
She ggan
Cuilin dy
nzh g 100% 60111 56137 54522 1638 807 54522 1638 807
yuan for
en Dist
sale
rict
Cha
Tiany Rea
Sha oyan
uewan dy
nto g 100% 153470 160372 120017 5133 2963 108459 6804 3901
Phase for
u Dist
I sale
rict
Cha
Tiany Rea
Sha oyan
uewan dy
nto g 100% 127770 137059 37430 9159 5220 36572 11060 6276
Phase for
u Dist
II sale
rict
Linxin Hui
Hui On
yuan yang
zho pre- 51% 159761 159761 2421
Phase Dist
u sale
I rict
Gua
She SPG ngm On
nzh Guang ing pre- 100% 53605 51975 29973 29973 133703
en mingli Dist sale
rict
12ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Rental status of major projects:
Cumulative
Name of The Company’s Rentable area rented area Average Location Use
project interest （㎡） occupancy rate
（㎡）
Real Estate
Shenzhen Commercial 100.00% 3413.88 3413.88 100.00%
Mansion
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% 60391.69 31598.87 52.32%
Podium of SPG
Shenzhen Commercial 100.00% 19886.30 14463.75 72.73%
Plaza
Wenjin Garden Shenzhen Commercial 100.00% 3531.60 3531.60 100.00%
Primary land development:
□ Applicable □ Not applicable
Financing channels:
Financing cost Maturity structure
Financing Ending balance
range/average
channel of financings
financing cost Within 1 year 1-2 years 2-3 years Over 3 years
Bank loans 21343.43 3.7%-4.2% 3400.13 11715.82 12.52 6214.97
Total 21343.43 3.7%-4.2% 3400.13 11715.82 12.52 6214.97
Development strategy and operating plan for the coming year:
Please refer to ―XI Prospects‖ in this part of the Report.Provision of guarantees for homebuyers on bank mortgages:
□ Applicable □ Not applicable
Guarantee amount (RMB’000
Project Guarantee period Note
0)
Until the property ownership certificate is registered
Shanglinyuan 47.25
as collateral and handed over to bank for keeping
Until the property ownership certificate is registered
Cuilinyuan 935.87
as collateral and handed over to bank for keeping
Chuanqi Donghu Until the property ownership certificate is registered
1087.97
Mingyuan as collateral and handed over to bank for keeping
Until the property ownership certificate is registered
Tianyuewan 32241.18
as collateral and handed over to bank for keeping
Until the property ownership certificate is registered
Guangmingli 75304.40
as collateral and handed over to bank for keeping
Until the property ownership certificate is registered
Linxinyuan 1034.00
as collateral and handed over to bank for keeping
Total 110650.67
Joint investments by directors supervisors and senior management and the listed company (applicable for such investments where
the directors supervisors and senior management are the major source of investment):
□ Applicable □ Not applicable
Compatibilit
As % of As % of the Cumulative
Type of Investment Disinvestme y of actual
Project total peak of returns
investor amount (RMB) nt investment
investment project funds (RMB)
and returns
Director
supervisor or
Linxinyuan 8950000.00 39.25% 0.90% 0.00 N/A N/A
senior
management
13ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
of the
Company
III Core Competitiveness Analysis
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.It has paid great efforts to the establishment of a modern
enterprise HR management system and works hard in building a professional and high-quality development team.It also keeps improving the management mechanism and processes for project development. As a result its
planning construction cost control sales ability and brand image have been effectively improved. More
importantly its main business operation ability and core competitiveness have been greatly enhanced.In the Reporting Period the Company was awarded such honorary titles as the "2023 Brand Value Enterprise of
Shenzhen Real Estate Development Industry" "2023 Shenzhen CSR Benchmarking Enterprise in Real Estate
Development Industry" "2022 Shenzhen Willing Ox Award in Real Estate Industry" "Annual Contribution
Award for Listed Companies in the Greater Bay Area" and "Top 20 Board Governance of listed companies in the
Greater Bay Area".IV Core Business Analysis
1. Overview
In 2023 in the face of many difficulties and challenges such as the industry lingering at the bottom the spill-over
of real estate enterprises that had just got off the risky list entry of enterprise reform into a deep water zone and
deadlock in exploring future development yet to be broken the leadership team of the Company conscientiously
implemented the decisions and arrangements of the State-owned Assets Supervision and Administration
Commission of the People’s Government of Shenzhen Municipal (Municipal SASAC) and Shenzhen Investment
Holdings Co. Ltd. (SIHC) led the staff to carry forward fighting spirit made all-out efforts to withstand the
impact of external risks overcame multiple internal difficulties and thus solidly promoted sustainable
development. Major work progress for the year is as follows:
First anchoring the targets the Company continued developing and consolidating the core business. For SPG
Guangmingli project the promotional housing sources were sold out on the property-opening day and the annual
sales targets were overfulfilled; for Donghu Mingyuan project the properties were sold completely; for Shantou
14ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Tianyuewan and other projects good sales performance was achieved against the backdrop of the continuous
downturn in the regional market; for SPG's self-owned properties the overall investment operation was stable and
improved with the annual targets completed and with the creation of "Buildings for Shenzhen-Hong Kong
Medical and Healthcare Specialty Industry" of SPG Plaza constantly intensified.Second taking multiple measures simultaneously the Company continued improving quality and efficiency.Zhentong Engineering overfulfilled the annual targets for its operating revenue and total profit; Petrel Hotel
continued improving by expanding revenue and increasing profit; Shantou Company and Huazhan Construction
Supervision operated stably. During the Reporting Period the confirmation of the land rights of "Xinfeng
Building" in Shantou a task left over from history continued being promoted the deregistration of Xinfeng Real
Estate was completed the disposal of "non-core and non-advantageous business and inefficient and ineffective
assets" was orderly advanced and good results were achieved in collecting historical arrears.Third attaching importance to synergy the Company continued exploring future development. Through
synergies between internal and external resources the Company promoted future development and concentrated
on plan for new development "curves"; to integrate into the overall development strategy of SIHC the Company
reviewed and revised the "14th Five-Year" strategic plan; by continuously following the relevant measures of the
China Securities Regulatory Commission (the CSRC) for adjusting and optimizing real estate enterprises' equity
financing the Company coordinated SIHC's system resources and strove to study and explore the future
development mode.Fourth acting proactively the Company continued disposing of risks. Under the circumstances that enterprises
in the industry constantly encountered risks in combination with its project conditions the Company made
forward-looking studies and judgment and acted proactively made every effort to prevent and dispose of
operational risks and held the bottom line of without systematic risks and derivative material public opinion
events thus sparing no effort in safeguarding the security of state-owned assets.Fifth consolidating its foundation the Company continued boosting management and control. The Company
completed the change of office terms of the Board of Directors and the Board of Supervisors and the Company's
ESG report rating was upgraded to BBB; we reestablished the bidding and purchasing system as well as the cost
control system and newly revised (formulated) 41 management policies; we thoroughly inspected and remedied
hidden safety hazards and by drawing inferences remedied the problems identified in third-party tour inspections;
SPG optimised the human resources system and by externally attracting and internally training talent optimised
the structure of the staff team; the company also strengthened financial coordination and financing to effectively
safeguard the demand for funds.Sixth strengthening its roots and consolidating its soul the Company continued Party building. The Company
promoted the action of "massive interview discussion and revelation" and advanced achievement transformation.The Company's subordinate enterprises where Party organisations "should be established as much as possible"
achieved the goal. The domestic legal person enterprises were fully covered with "putting Party building into
regulations" signed a Party-building responsibility statement strictly reported reviewed and appraised duties and
continuously consolidated the "three foundations". The Company implemented the "two responsibilities"
improved and was well versed in the "massive supervision" system and thus intensified the development of clean
15ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
culture.
2. Revenue and Cost Analysis
(1) Breakdown of Operating Revenue
Unit: RMB
20232022
As % of total As % of total Change (%)
Operating revenue operating revenue Operating revenue operating revenue
(%)(%)
Total 530887720.68 100% 634384561.42 100% -16.31%
By operating division
Property sales 118580624.34 22.34% 309331841.57 48.76% -61.67%
Engineering and
324243778.5061.08%236949097.4537.35%36.84%
construction
Property
3491329.170.66%33801320.235.33%-89.67%
management
Rental service 84571988.67 15.93% 54302302.17 8.56% 55.74%
By product category
Residential units 108943731.16 20.52% 277643154.35 43.77% -60.76%
Shops and parking
9636893.181.82%31688687.225.00%-69.59%
lots
Other 412307096.34 77.66% 325052719.85 51.24% 26.84%
By operating segment
Guangdong
530197455.5799.87%633906909.8099.92%-16.36%
Province
Overseas 690265.11 0.13% 477651.62 0.08% 44.51%
By marketing model
Principal
524099615.6398.72%628832520.5199.12%-16.66%
operations
Other 6788105.05 1.28% 5552040.91 0.88% 22.26%
(2) Operating Division Product Category or Operating Segment Contributing over 10% of Operating
Revenue or Operating Profit
□ Applicable □ Not applicable
Unit: RMB
YoY
change in
YoY change in YoY change
Gross profit gross
Operating revenue Cost of sales operating in cost of
margin profit
revenue (%) sales (%)
margin
(%)
By operating division
Property sales 118580624.34 80235849.12 32.34% -61.67% -43.19% -50.94%
Engineering
and 324243778.50 317088117.19 2.21% 36.84% 36.82% 0.05%
construction
Rental service 84571988.67 44847244.30 46.97% 55.74% 7.97% 357.88%
By product category
Residential
108943731.1674609765.9431.52%-60.76%-41.00%-42.13%
units
By operating segment
16ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Guangdong
530197455.57455342654.9714.12%-17.23%1.22%-52.58%
Province
Core business data of the prior year restated according to the changed statistical caliber for the Reporting Period:
□ Applicable □ Not applicable
(3) Whether Revenue from Physical Sales Is Higher than Service Revenue
□ Yes □ No
Operating division Item Unit 2023 2022 Change (%)
Sales volume RMB’0000 10910 16522 -33.97%
Property sales Output RMB’0000 15892 37603 -57.74%
Inventory RMB’0000 430663 425681 1.17%
Any over 30% YoY movements in the data above and why:
□ Applicable □ Not applicable
Affected by the real estate market the Company saw less-than-expected property sales carryforwards and existing
property sales in 2023 resulting in a decrease in property investment and development.
(4) Execution Progress of Major Signed Sales or Purchase Contracts in the Reporting Period
□ Applicable □ Not applicable
(5) Breakdown of Cost of Sales
By operating division
Unit: RMB
20232022
Operating
Item As % of total As % of total Change (%)
division Cost of sales cost of sales Cost of sales cost of sales
(%)(%)
Property sales 80235849.12 18.04% 141232452.52 32.31% -43.19%
Engineering
and 317088117.19 71.29% 231754203.03 53.03% 36.82%
construction
Property
2626431.490.59%19780268.704.53%-86.72%
management
Rental service 44847244.30 10.08% 44285076.76 10.13% 1.27%
Total 444797642.10 100.00% 437052001.01 100.00% 1.77%
Note:
Affected by markets and development cycles property sales experienced a year-on-year drop of 43.19%; and
engineering and construction projects saw new breakthroughs in expansion resulting in a year-on-year increase of
36.82% in sales.
(6) Changes in the Scope of Consolidated Financial Statements for the Reporting Period
□Yes□No
17ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
(7) Major Changes to the Business Scope or Product or Service Range in the Reporting Period
□ Applicable □ Not applicable
(8) Major Customers and Suppliers
Major customers:
Total sales to top five customers (RMB) 139521174.93
Total sales to top five customers as % of total sales of the
26.28%
Reporting Period (%)
Total sales to related parties among top five customers as % of
0.00%
total sales of the Reporting Period (%)
Information about top five customers:
Sales revenue contributed for As % of total sales revenue
No. Customer
the Reporting Period (RMB) (%)
1 Legal person A 55098804.24 10.38%
2 Legal person B 26869725.62 5.06%
3 Legal person C 19944916.00 3.76%
4 Legal person D 19271404.07 3.63%
5 Legal person E 18336325.00 3.45%
Total -- 139521174.93 26.28%
Other information about major customers:
□ Applicable □ Not applicable
Major suppliers:
Total purchases from top five suppliers (RMB) 135980783.49
Total purchases from top five suppliers as % of total purchases
94.52%
of the Reporting Period (%)
Total purchases from related parties among top five suppliers
0.00%
as % of total purchases of the Reporting Period (%)
Information about top five suppliers:
Purchase in the Reporting
No. Supplier As % of total purchases (%)
Period (RMB)
1 Legal person A 117030547.22 81.34%
2 Legal person B 10654310.21 7.41%
3 Legal person C 3447916.26 2.40%
4 Legal person D 3088209.80 2.15%
5 Legal person E 1759800.00 1.22%
Total -- 135980783.49 94.52%
Other information about major suppliers:
□ Applicable □ Not applicable
3. Expense
Unit: RMB
2023 2022 Change (%) Reason for any significant change
Selling Selling expenses on the Guangmingli project was
21803202.1419217595.1113.45%
expense newly added in the current year
Administrat 55965931.72 55758749.08 0.37%
18ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
ive expense
Decreased average bank balances and deposit
Finance
-5231991.59 -6507147.03 -19.60% interest income as well as new bank loan interest
costs
in the current period
4. R&D Investments
□ Applicable □ Not applicable
5. Cash Flows
Unit: RMB
Item 2023 2022 Change (%)
Subtotal of cash generated from
1950984549.76668449932.34191.87%
operating activities
Subtotal of cash used in
905947301.571344225931.10-32.60%
operating activities
Net cash generated from/used in
1045037248.19-675775998.76254.64%
operating activities
Subtotal of cash generated from
139173390.10282766666.00-50.78%
investing activities
Subtotal of cash used in investing
601475412.00713537.2984194.88%
activities
Net cash generated from/used in
-462302021.90282053128.71-263.91%
investing activities
Subtotal of cash generated from
169486610.82111428077.6252.10%
financing activities
Subtotal of cash used in
83583781.56140126109.45-40.35%
financing activities
Net cash generated from/used in
85902829.26-28698031.83-399.33%
financing activities
Net increase in cash and cash
668781343.87-421928565.67-258.51%
equivalents
Explanation of why any of the data above varies significantly:
□ Applicable □ Not applicable
Cash generated from operating activities increased year on year primarily driven by the cash inflow from the SPG-Guangmingli
project in the current period.Cash used in operating activities decreased year on year primarily driven by the decreased development and construction of real
estate projects.Net cash generated from investing activities decreased year on year primarily driven by the increased purchase of currency fund in
the current period.Cash generated from financing activities increased year on year primarily driven by the new bank loan in the current period.Cash used infinancing activities decreased year on year primarily driven by the decreased dividend payout in the current period.Reason for any big difference between the net operating cash flow and the net profit for this 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-Core Businesses
□ Applicable □ Not applicable
19ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
VI Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
31 December 2023 1 January 2023 Change
As a % As a % in Reason for any significant
Amount of total Amount of total percenta change
assets assets ge (%)
Return of funds from sales
Monetary assets 871019268.83 13.43% 197663949.74 3.47% 9.96% of the SPG Guangmingli
project
Accounts
75100970.831.16%63580422.161.12%0.04%
receivable
Contract assets 27352596.92 0.42% 0.00 0.42%
Impairment on the SPG
Inventories 3915215921.96 60.37% 4257109614.31 74.82% -14.45%
Linxinyuan project
Investment
541542136.178.35%566873915.079.96%-1.61%
property
Long-term equity
0.000.00%93927.640.00%0.00%
investments
Fixed assets 19928049.77 0.31% 21425475.05 0.38% -0.07%
Right-of-use
99641.480.00%232496.720.00%0.00%
assets
Short-term
3550000.000.05%51138077.620.90%-0.85%
borrowings
Sales proceeds received in
Contract
1291448591.28 19.91% 43533467.29 0.77% 19.14% advance from the SPG
liabilities
Guangmingli project
Long-term
179431851.02 2.77% 54261000.00 0.95% 1.82% New bank loans
borrowings
Lease liabilities 53885.23 0.00% 0.00%
Held-for-trading Purchase of monetary
879340201.9213.56%408154361.427.17%6.39%
financial assets funds
Accounts payable 443259768.78 6.83% 434601559.67 7.64% -0.81%
Payment of land VAT of
Taxes payable 40908986.48 0.63% 190951185.99 3.36% -2.73% Donghu Mingyuan in the
current period
Other payables 554469229.59 8.55% 574331340.84 10.09% -1.54%
Indicate whether overseas assets account for a high proportion of total assets.□ Applicable □ Not applicable
2. Assets and Liabilities at Fair Value
□ Applicable □ Not applicable
Unit: RMB
Im
pa
Ot
ir
Gain/loss on Cumulative he
m
fair-value fair-value r
en Purchased in the Sold in the
Item Beginning amount changes in the changes ch Ending amount
t Reporting Period Reporting Period
Reporting charged to an
all
Period equity ge
o
s
wa
nc
20ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
e
for
th
e
Re
po
rti
ng
Pe
rio
d
Financial assets
1. Held-
for-
trading
financial
assets
(excludi 408154361.42 7824348.71 600000000.00 136638508.21 879340201.92
ng
derivati
ve
financial
assets)
4.
Investm
ents in
other 13839235.57 485175.78 14324411.35
equity
instrume
nts
Total of
the 421993596.99 7824348.71 485175.78 600000000.00 136638508.21 893664613.27
above
Financia
l
0.000.00
liabilitie
s
Other change
Significant changes to the measurement attributes of the major assets in the Reporting Period:
□ Yes □ No
3. Restricted Asset Rights as at the Period-End
Item Ending carrying value Reasons for restriction
Project of public facilities inside and surrounding the urban renewal project of
Monetary assets 5817217.78 Longgang District Shenzhen-construction funds-land reclamation costs of SPG
Guangmingli project
Monetary assets 5943085.18 Frozen in a lawsuit case
Monetary assets 50000.00 Construction deposit
Monetary assets 62552.52 Stop payments suspend accounts
Accounts receivable 27890361.58 Pledged for short-term borrowings
Investment property 44297197.87 Mortgaged for borrowings
Total 84060414.93
21ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
VII Investments Made
1. Total Investment Amount
□ Applicable □ Not applicable
Total investment amount in the Total investment amount in last year
Change (%)
Reporting Period (RMB) (RMB)
190310000.00299540000.00-36.47%
2. Significant Equity Investments Made in the Reporting Period
□Applicable □ Not applicable
3. Major Non-Equity Investments Ongoing in the Reporting Period
□Applicable □ Not applicable
4. Financial Investments
(1) Securities Investments
□Applicable □ Not applicable
No such cases in the Reporting Period.
(2) Investments in Derivative Financial Instruments
□Applicable □ Not applicable
No such cases in the Reporting Period.
5. Use of Funds Raised
□Applicable □ Not applicable
No such cases in the Reporting Period.VIII Sale of Major Assets and Equity Interests
1. Sale of Major Assets
□Applicable □ Not applicable
No such cases in the Reporting Period.
2. Sale of Major Equity Interests
□Applicable □ Not applicable
IX Principal Subsidiaries and Joint Stock Companies
□ Applicable □ Not applicable
22ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Principal subsidiaries and joint stock companies with an over 10% effect on the Company’s net profit:
Unit: RMB
Relati
onship Main
Comp
with busine Registered Operating Operating
any ss Total assets Net assets Net profit the capital revenue profit
name
Comp scope
any
Guan
gdong
Jianb
ang
Devel
Grou
opmen -
p Subsid 1532537012 -
t of 2800000.00 25433005. 0.00 -9736449.82
(Huiy iary
real .55 11810122.07
ang) 65
estate
Indust
rial
Co.Ltd.Shenz
hen
SPG
Chua
Devel
nqi
opmen
Real Subsid 2560819336 990746279
t of 30000000.00 0.00 -4609281.60 -3435619.67
Estate iary
real .10 .57
Devel
estate
opme
nt
Co.Ltd.Shenz
hen
SPG
Devel
Long
opmen
gang Subsid 55463556.t of 30000000.00 94912989.41 10746255.27 3549049.77 -2138802.00
Devel iary
real 61
opme
estate
nt
Co.Ltd.Shant
ou
SEZ
Wella
m Devel
FTY opmen
Subsid 35280380. - -
Buildi t of 91226120.44 85426747.46 1243939.83
iary
ng real 10 55021858.71 55024437.34
Devel estate
opme
nt
Co.Ltd.Shant
ou
Huafe
Devel
ng
opmen
Real Subsid 780373794.4 12827733.t of 80000000.00 94905140.68 5194367.78 -4797165.52
Estate iary
real 8 61
Devel
estate
opme
nt
Co.
23ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Ltd.Great
Devel
Wall
opmen -
Estate Subsid
t of 2051146.00 19964537.33 91827313. 690265.11 -351082.24 -351082.24
Co. iary
real
Inc. 73
estate
(U.S.)
Shenz
hen
Install
Zhent
ation
ong Subsid 139385580.3 21570554. 328544298.0
and 10000000.00 872314.59 1402095.23
Engin iary
mainte 8 27 0
eering
nance
Co.Ltd.Shenz
hen
Hotel
Petrel Subsid 38928638.servic 30000000.00 48536863.21 17925482.71 2218886.38 2004316.15
Hotel iary
e 00
Co.Ltd.Shenz
hen
Huaz
han
Constr
Const
Subsid uction 10471446.ructio 8000000.00 11275162.28 3986383.98 200736.55 143261.58
iary superv
n 74
ision
Super
vision
Co.Ltd.Xin
Invest
Feng
ment -
Enter Subsid 337330256.3
and 502335.00 230256448 0.00 -3885483.26 -3885483.26
prise iary
manag 3
Co. .73
ement
Ltd.Subsidiaries obtained or disposed in the Reporting Period:
□Applicable □ Not applicable
Information about major majority- and minority-owned subsidiaries:
1. In May 2021 through the payment of consideration of RMB450 million the Group acquired 51% equity interest in Guangdong
Jianbang Group (Huiyang) Industrial Co. Ltd. The project company will develop the Linxingyuan Project with a gross site area of
200000 square meters and a total capacity building area of 0.4 million square meters which will be developed in four phases. The
Group has control over the project company which will be included in the scope of consolidation in May 2021.As of 31 December
2023 eight residential buildings of Phase I have been capped the basement of Phase II has been completed the development of
Phase III and Phase IV are to be initiated and construction permit has not been granted for the school. There were no sales in 2023.
2. 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 2023 actual
investment totaled RMB158.83 million.On 22 September 2023 the Company obtained the pre-sale license for its SPG Guangmingli project and opened the sale of the
properties on 28 September. In 2023 areas sold totaled 31143.98 square meters amount from sales increased by RMB1389.02
million and funds of RMB1359.85 million were withdrawn.
3. The subordinate subsidiaries engaged in real estate development also include: Shenzhen SPG Longgang Development Co. Ltd.
Shantou SEZ Wellam FTY Building Development Co. Ltd. Shantou Huafeng Real Estate Development Co. Ltd.The Cuilinyuan project developed by Shenzhen SPG Longgang Development Co. Ltd. recorded the carryover revenue of RMB8.17
24ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
million (cumulative sales carry-over of 96%) in 2023.Jinyedao and YuejingDongfang developed by Shantou SEZ Wellam FTY Building Development Co. Ltd. left a few amount of
remaining buildings for sale. And Shantou Huafeng Real Estate Development Co. Ltd. was responsible for the development of
Tianyuewan project (divided into Phase I and Phase II). Tianyuewan Phase I was 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 June 2021. The overall sales
progress is relatively slow with an accumulated sales rate of about 74% for Phase I and 26% for Phase II.
4. Shenzhen Zhentong Engineering Co. Ltd. was engaged in the business of building installation and maintenance with the 2023
operating revenues of RMB329 million and of 62% to the operating revenues of the Company.
5. The 2023 net profit of Xin Feng Enterprise Co. Ltd. was of RMB-3.89 million which mainly due to the changes of exchange rate
and it conducts no business.
6. The 2024 net profit of Shenzhen Petrel Hotel Co. Ltd. was of RMB2 million representing a return to profitability which was
mainly due to the fact that the market and business environment improved during the Reporting Period.X Structured Bodies Controlled by the Company
□Applicable □ Not applicable
XI Prospects
(I) Industry pattern and trends
Currently the real estate industry will change from a high growth rate industry to a value-driven industry and the
market pattern is facing adjustments. The policy side is expected to continue playing its part credit easing will be
maintained and market trend depends on the degree of recovery of home buyers' confidence; the "Three Major
Projects" as a long-term mechanism and an important entry point to stabilize the market will play a key role in
future market expectations.(II) Possible risks and countermeasures
1. Macroeconomic risks and countermeasures
In 2024 the world economy has insufficient growth momentum the complexity severity and uncertainty of the
external environment rise and the foundation for a sustained economic recovery and improvement is not yet
steady. The basic trend of long-term upturn in China's economy has not changed and opportunities will coexist
with risks and challenges in future development with more advantages than disadvantages. 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 in the real estate industry although the financing environment has improved and the regulatory
policies are expected to ease during an upcoming period potential industry risks still exist resources will
continue flowing to leading quality enterprises the industry competition pattern will present a new situation. The
Company will continue deepening the research on industry policies following national strategy optimizing the
development method and innovating its operating model.
3. Business operating risks and countermeasures
The continuous downturn in the property market has led to increased difficulties in the sale of the Company's
inventory projects meanwhile the Company's existing reserves of development land resources are insufficient
and the expansion of new business has not yet yielded substantial results thus putting pressure on the enterprise
for its operation and development. The Company will pay close attention to changes in the market and industry
policies focus on project construction and property sales formulate targeted land expansion plans consolidate the
foundation of the core business and proactively explore new paths in line with the actual development of the
25ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Company.(III) Development strategy and operating plan
In 2024 the Company's overall work requirements are to: Enhance cohesion and forge the soul by adhering to
the Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era; comprehensively act in the spirit
of the Party's 20th National Congress; thoroughly implement the guiding principles of the Central Economic Work
Conference; scientifically grasp the main keynote of "seeking progress while maintaining stability reinforcing
stability with progress and establishing the new before abolishing the old"; resolutely implement the work
arrangement of the controlling shareholders; base the Company on its own resource endowment and coordinate
internal and external advantageous resources; focus on "developing and consolidating the core business
improving capabilities preventing risks and expanding new business"; and continuously improve value-creating
ability.
1. With focus on consolidating the core business the Company will make new strides in creating value. First
the Company will establish and improve the standardisation manual of real estate development with the focus on
optimizing core business operations; second the Company will strengthen project quality control with the focus
on ensuring the progress of projects; third the Company will spare no effort to intensify project sales with the
focus on promoting the sale of inventory; fourth the Company will expand the influence of the brand namely
"Buildings for Shenzhen-Hong Kong Medical and Healthcare Specialty Industry" of SPG Plaza with the focus on
building a platform for gathering massive health industry and on boosting leasing operation.
2. With focus on improving capabilities the Company will make greater strides in driving reform. First the
Company will optimise and improve the system of remuneration management and assessment and incentive and
build efficient teams with the focus on enhancing "organisational capabilities"; second the Company will
optimise and improve the operation control system and enhance the capabilities of efficient operation of the
whole project whole cycle and whole profession with the focus on enhancing the "operational capabilities"; third
the Company will promote the informationisation development and boost the effectiveness of internal
management and synergy operation with the focus on enhancing "digital intelligence capabilities".
3. With focus on preventing risks the Company will make steadier strides in proactive action. First the
Company will pay close attention to changes in situation timely adjust the strategies for disposing of and
responding to project risks and accelerate risk disposal with the focus on disposing of project risks; second the
Company will improve and perfect the safety management system and strengthen safety and quality management
with the focus on preventing safety risks; third the Company will promote the development of the compliance
management system perform better in fund plan and cash flow management and guard the bottom line of without
systematic risks with the focus on controlling operational risks.
4. With focus on expanding new business the Company will take faster strides in exploring future development.
First the Company will make in-depth analysis study and judgment and by centring on strategic reviews and
revisions develop the strong points and avoid the weak points to pinpoint the main battlefield for future
development; second the Company will give play to synergistic effect and by centring on the arrangements for
reform in Shenzhen's state-owned assets and enterprises and the strategy of SIHC explore the future development
path and tap into high-quality investment opportunities; third the Company will pay close attention to market
trends and set up a professional team of investment research to strive for the implementation of projects as soon as
possible.
5. With focus on strong leadership the Company will make more practical strides in party building integration.
First the Company will enhance political leadership and identify the direction of high-quality development;
second the Company will enhance ideological leadership consolidate and deepen the achievements of thematic
education and build the foundation of high-quality development; third the Company will enhance the overall
effectiveness of the development of the organisational system strengthen the development of Party member team
26ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
and forge the fortress of high-quality development. Fourth the Company will explore new paths of integration of
party building and business and usher in motivating the vitality of high-quality development.XII Communications with the Investment Community such as Researches Inquiries and
Interviews during the Reporting Period
□ Applicable □ Not applicable
Index
to
Place Way Type main
Date of visit of of of Visitor Contents and materials provided inquir
visit visit visitor y
inform
ation
The By
Indivi Individual Inquired of business situations and strategic planning
5 January 2023 Comp teleph N/A
dual investor of the Company and didn’t offer written materials
any one
The By
Indivi Individual Inquired of project sales of the Company and didn’t
11 January 2023 Comp teleph N/A
dual investor offer written materials
any one
The By
Indivi Individual Inquired of business situation and didn’t offer written
12 January 2023 Comp teleph N/A
dual investor materials
any one
The By
Indivi Individual Inquired of the future development plan of the
8 February 2023 Comp teleph N/A
dual investor Company and didn’t offer written materials
any one
The By
Indivi Individual Inquired of the future development plan of the
21 February 2023 Comp teleph N/A
dual investor Company and didn’t offer written materials
any one
The By
Indivi Individual Inquired of business situations and strategic planning
24 February 2023 Comp teleph N/A
dual investor of the Company and didn’t offer written materials
any one
Writte
The
n Indivi Individual
13 March 2023 Comp Enquire about the number of shareholders N/A
inquir dual investor
any
y
Writte
The
n Indivi Individual
21 March 2023 Comp Enquire about the number of shareholders N/A
inquir dual investor
any
y
The By
Indivi Individual Inquired of business situation and didn’t offer written
29 March 2023 Comp teleph N/A
dual investor materials
any one
The By
Indivi Individual Inquired of business situations and strategic planning
11 April 2023 Comp teleph N/A
dual investor of the Company and didn’t offer written materials
any one
The By
Indivi Individual Inquired of project sales of the Company and didn’t
19 April 2023 Comp teleph N/A
dual investor offer written materials
any one
Writte
The
n Indivi Individual
21 April 2023 Comp Enquire about the number of shareholders N/A
inquir dual investor
any
y
The By
Indivi Individual Inquired of the land reserves and projects progress of
26 April 2023 Comp teleph N/A
dual investor the Company and didn’t offer written materials
any one
27ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
The By
Indivi Individual Inquired of business situations and strategic planning
28 April 2023 Comp teleph N/A
dual investor of the Company and didn’t offer written materials
any one
Writte
The
n Indivi Individual
11 May 2023 Comp Enquire about the number of shareholders N/A
inquir dual investor
any
y
Writte
The
n Indivi Individual
22 May 2023 Comp Enquire about the number of shareholders N/A
inquir dual investor
any
y
Writte
The
n Indivi Individual
22 May 2023 Comp Enquire about the number of A-shareholders N/A
inquir dual investor
any
y
Writte
The
n Indivi Individual
1 June 2023 Comp Enquire about the number of shareholders N/A
inquir dual investor
any
y
Writte
The
n Indivi Individual
1 June 2023 Comp Enquire about the number of shareholders N/A
inquir dual investor
any
y
Writte
The
n Indivi Individual
1 June 2023 Comp Enquire about the number of shareholders N/A
inquir dual investor
any
y
Writte
The
n Indivi Individual
12 June 2023 Comp Enquire about the number of shareholders N/A
inquir dual investor
any
y
Writte
The
n Indivi Individual
12 June 2023 Comp Enquire about the number of shareholders N/A
inquir dual investor
any
y
Writte
The
n Indivi Individual
25 June 2023 Comp Enquire about the number of shareholders N/A
inquir dual investor
any
y
Writte
The
n Indivi Individual
26 June 2023 Comp Enquire about the number of shareholders N/A
inquir dual investor
any
y
Writte
The
n Indivi Individual
3 July 2023 Comp Enquire about the number of shareholders N/A
inquir dual investor
any
y
Writte
The
n Indivi Individual
11 July 2023 Comp Enquire about the number of shareholders N/A
inquir dual investor
any
y
Writte
The
n Indivi Individual
21 July 2023 Comp Enquire about the number of shareholders N/A
inquir dual investor
any
y
The By Indivi Individual Inquired of business situations and strategic planning
31 July 2023 N/A
Comp teleph dual investor of the Company and didn’t offer written materials
28ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
any one
Writte
The
n Indivi Individual
1 August 2023 Comp Enquire about the number of shareholders N/A
inquir dual investor
any
y
Writte
The
n Indivi Individual
2 August 2023 Comp Enquire about the number of shareholders N/A
inquir dual investor
any
y
The By
Indivi Individual Inquired of business situation and didn’t offer written
7 August 2023 Comp teleph N/A
dual investor materials
any one
Writte
The
n Indivi Individual
11 August 2023 Comp Enquire about the number of shareholders N/A
inquir dual investor
any
y
Writte
The
n Indivi Individual
21 August 2023 Comp Enquire about the number of shareholders N/A
inquir dual investor
any
y
The By
Indivi Individual Inquired of horizontal competition of the Company
28 August 2023 Comp teleph N/A
dual investor and didn’t offer written materials
any one
Writte
The
n Indivi Individual
1 September 2023 Comp Enquire about the number of shareholders N/A
inquir dual investor
any
y
Writte
The
n Indivi Individual
11 September 2023 Comp Enquire about the number of shareholders N/A
inquir dual investor
any
y
Writte
The
n Indivi Individual
21 September 2023 Comp Enquire about the number of shareholders N/A
inquir dual investor
any
y
Writte
The
n Indivi Individual
10 October 2023 Comp Enquire about the number of shareholders N/A
inquir dual investor
any
y
Writte
The
n Indivi Individual
11 October 2023 Comp Enquire about the number of shareholders N/A
inquir dual investor
any
y
Writte
The
n Indivi Individual Inquired of project sales of the Company and didn’t
23 October 2023 Comp N/A
inquir dual investor offer written materials
any
y
Writte
The
n Indivi Individual
24 October 2023 Comp Enquire about the number of shareholders N/A
inquir dual investor
any
y
Writte
The
n Indivi Individual
3 November 2023 Comp Enquire about the number of shareholders N/A
inquir dual investor
any
y
The Writte Indivi Individual
13 November 2023 Enquire about the number of shareholders N/A
Comp n dual investor
29ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
any inquir
y
Writte
The
n Indivi Individual
21 November 2023 Comp Enquire about the number of shareholders N/A
inquir dual investor
any
y
The By
Indivi Individual Inquired of the future development plan of the
23 November 2023 Comp teleph N/A
dual investor Company and didn’t offer written materials
any one
Writte
The
n Indivi Individual
29 November 2023 Comp Enquire about the number of shareholders N/A
inquir dual investor
any
y
Writte
The
n Indivi Individual
30 November 2023 Comp Enquire about the number of shareholders N/A
inquir dual investor
any
y
Writte
The
n Indivi Individual
1 December 2023 Comp Enquire about the number of shareholders N/A
inquir dual investor
any
y
The By Inquired of business situation and the future
Indivi Individual
7 December 2023 Comp teleph development plan of the Company and didn’t offer N/A
dual investor
any one written materials
The By
Indivi Individual Inquired of construction in progress and litigation
8 December 2023 Comp teleph N/A
dual investor and didn’t offer written materials
any one
Writte
The
n Indivi Individual
11 December 2023 Comp Enquire about the number of shareholders N/A
inquir dual investor
any
y
The By
Indivi Individual Inquired of construction in progress and litigation
12 December 2023 Comp teleph N/A
dual investor and didn’t offer written materials
any one
The By
Indivi Individual Inquired of litigation and didn’t offer written
15 December 2023 Comp teleph N/A
dual investor materials
any one
The By
Indivi Individual Inquired of horizontal competition of the Company
19 December 2023 Comp teleph N/A
dual investor and didn’t offer written materials
any one
Writte
The
n Indivi Individual
21 December 2023 Comp Enquire about the number of shareholders N/A
inquir dual investor
any
y
The By
Indivi Individual Inquired of the annual audit accountant of the
25 December 2023 Comp teleph N/A
dual investor Company and didn’t offer written materials
any one
The By
Indivi Individual Inquired of changes in directors and supervisors of
27 December 2023 Comp teleph N/A
dual investor the Company and didn’t offer written materials
any one
XIII Implementation of the Action Plan for “Dual Enhancement of Quality and Profitability”
Has the Company disclosed its Action Plan for ―Dual Enhancement of Quality and Profitability‖
□Yes □No
30ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Part IV Corporate Governance
I Basic Situation of Corporate Governance
In accordance with the requirements of the Company Law the Securities Law the Code on the Governance of
Listed Companies and other laws and regulations the Company has been improving its governance structure
continuously adhering to standardized operation and an operational mechanism featuring decision-making by the
board of directors execution by the management team and supervision by the board of supervisors has been
formed.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.
(1) Operation of the general meeting of shareholders
The preparation holding of the annual and extraordinary general meetings of shareholders of the Company as
well as disclosure of the resolutions made at the meetings have been carried out in strict accordance with the
Company Law the Rules of the General Meeting of Shareholders of Listed Companies of China Securities
Regulatory Commission (CSRC) the Articles of Association and the Rules of Procedure of the General Meeting
of Shareholders 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.
(2) 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 Main
Board 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.
(3) Operation of the supervisory committee
The number and manning of the board of supervisors have met the requirements of laws and regulations. All
members of the board of supervisors of the Company have performed their duties diligently and conscientiously.They have supervised and inspected the important matters of the Company 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 Main Board the Articles of Association and the Rules of Procedure of the
Board of Supervisors of the Company exercised the power of supervision effectively gave a full play to the
supervisory function have played a substantial role in the operation and management of the Company and have
protected the legitimate rights and interests of the Company and the shareholders.
(4) Operation at manager level
The manager level of the Company has performed its duties in strict accordance with the Company Law the Self-
31ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
regulation Guidelines for Listed Companies of Shenzhen Stock Exchange No. 1-Standardized Operation of Listed
Companies on the Main Board the Articles of Association and the Detailed Working Rules for the General
Manager of the Company. The manager level is responsible for the production operation and management of the
Company all-roundly. They have performed their duties diligently and conscientiously and have carried out the
decisions of the board of directors effectively. The members at the manager level have had a clear division of
labor among them they have worked diligently and conscientiously and there has not existed any situation of
"control under insiders ".Indicate by tick market whether there is any material incompliance with laws administrative regulations and
regulations governing the governance of listed companies issued by the CSRC.□Yes □ No
No such cases in the Reporting Period.II The Company’s Independence from Its Controlling Shareholder and Actual Controller in
Business Personnel Asset Organization and Financial Affairs
(I) In respect of assets the Company possessed independent and integrated assets and the property of the
Company is transparent.(II) In respect of personnel the Company was absolutely independent in management of labor personnel and
salaries from the controlling shareholders. All the senior executives of the Company took no office title
concurrently and drew no remunerations from the Shareholder Company.(III) In respect of finance the Company has independent financial department independently accounted and paid
taxes according to the law. The Company established a complete accounting system financial accounting system
and financial administrative systems. The Company opened independent bank accounts.(IV) In respect of organization the Board of Directors and the Supervisory Board operated independently. There
existed no superior-inferior relationship between the controlling shareholder and its function department and the
Company.(V) In respect of business the Company possessed independent production supply and sales system.III Horizontal Competition
□ Applicable □ Not applicable
Relationship Comp Comp
Progress and follow-
Type with the any any Course Countermeasures
up plan
Company name nature
For the Company’s existing Refer to the
The Company and business that has horizontal Announcement on
ShenZhen Properties & competition with ShenZhen Receiving the
Resources Development Properties & Resources Avoiding Horizontal
(Group) Ltd. (hereinafter Development (Group) Ltd. Competition
Shenz
referred to as ―SZPRD‖) Shenzhen Investment Commitment Letter
hen
Horiz are majority-owned Holdings Co. Ltd. will from the Controlling
Invest
ontal subsidiaries of Shenzhen within the scope permitted Shareholder (No.:
Controlling ment
comp Other Investment Holdings Co. by laws and regulations 2021-032) disclosed
shareholder Holdi
etitio Ltd. The Company and timely launch one or several by the Company on
ngs
n SZPRD are operating real of the following solutions 11 September 2021
Co.estate development and that is practically feasible and the
Ltd.commercial property sales and complete the Announcement on
business which belong to implementation of the Resolutions of the
the same industry. There relevant solution(s) before 9 1st Extraordinary
is horizontal competition. November 2024 to solve the General Meeting of
existing horizontal 2021 (No.: 2021-34)
32ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
competition problem: (1) disclosed by
Solve the horizontal ShenZhen Properties
competition between the & Resources
two through asset sales or Development
asset replacement; (2) Solve (Group) Ltd. on 27
the horizontal competition September 2021 for
between the two through details.equity transfer; (3) Take
other measures that can
effectively solve the
problem of horizontal
competition.IV Annual and Extraordinary General Meeting Convened during the Reporting Period
1. General Meetings Convened during the Reporting Period
Investor
Meeting Type participati Convened date Disclosure date Index to disclosed information
on ratio
st
The 1st Resolutions of the 1 Extraordinary
Extraordin
Extraordinary General Meeting of 2023 disclosed on
ary
General 62.31% 30 March 2023 31 March 2023 China Securities Securities Times
General
Meeting of
Meeting and www.cninfo.com.cn (No.: 2023-
2023014)
Resolutions of 2022 Annual General
The 2022 Annual
Meeting disclosed on China
Annual General General 62.37% 28 April 2023 29 April 2023
Meeting Meeting Securities Securities Times and
www.cninfo.com.cn (No.: 2023-020)
The 2nd Resolutions of the 2
nd Extraordinary
Extraordin
Extraordinary General Meeting of 2023 disclosed on
ary
General 62.99% 12 September 2023 13 September 2023 China Securities Securities Times
General
Meeting of
Meeting and www.cninfo.com.cn (No.: 2023-
2023033)
rd
The 3rd Resolutions of the 3 Extraordinary
Extraordin
Extraordinary General Meeting of 2023 disclosed on
ary
General 62.44% 30 November 2023 1 December 2023 China Securities Securities Times
General
Meeting of
Meeting and www.cninfo.com.cn (No.: 2023-
2023047)
2. Extraordinary General Meeting Convened at Request of Preference Shareholders with Resumed Voting
Rights
□Applicable □ Not applicable
V Directors Supervisors and Senior Management
1. Basic Information
Increa Decre
Begin se in ase in Other Endin
ning the the increa g Reaso
Ge Incum
Office End of shareh Report Report se/dec shareh n for
Name nde Age bent/F Start of tenure
title tenure olding ing ing rease olding chang
r ormer
(share Period Period (share (share e
) (share (share ) )
))
33ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Chairma
Tang Ma Incum 30 March
54 n of the 0 0 0 0 0
Xiaoping le bent 2023
Board
Tang Ma Incum 31 December
54 Director 0 0 0 0 0
Xiaoping le bent 2020
Tang Ma Incum 14 December
54 GM 0 0 0 0 0
Xiaoping le bent 2020
Qian Ma Incum 12 September
50 Director 0 0 0 0 0
Zhong le bent 2023
Wang Ma Incum 11 October
51 Director 0 0 0 0 0
Jianfei le bent 2021
Wang Ma Incum 22 September
51 CFO 0 0 0 0 0
Jianfei le bent 2021
Sun Ma Incum 31 December
43 Director 0 0 0 0 0
Minghui le bent 2020
Zhang Ma Incum 30 March
49 Director 0 0 0 0 0
Manhua le bent 2023
Li Ma Incum 30 November
51 Director 0 0 0 0 0
Wenkun le bent 2023
Indepen
Kang Ma Incum
60 dent 15 May 2018 0 0 0 0 0
Xiaoyue le director bent
Indepen
He Ma Incum
62 dent 30 June 2020 0 0 0 0 0
Zuowen le director bent
Indepen
Mi Ma Incum
49 dent 30 June 2020 0 0 0 0 0
Xuming le director bent
Chairma
n of the
Wang Ma Supervis Incum
58 17 May 2022 0 0 0 0 0
Jiangtao le ory bent
Commit
tee
Fe
Supervis Incum
Li Yufei mal 46 17 April 2012 0 0 0 0 0
or bent
e
Wei Ma Supervis Incum 30 November
4500000
Junfeng le or bent 2023
Fe
Supervis Incum
Lin Jun mal 55 27 April 2016 0 0 0 0 0
or bent
e
Fe
Lu Supervis Incum 28 March
mal 47 0 200 0 0 200
Haiyan or bent 2023
e
Zhang Ma Vice Incum
58 15 July 2020 0 0 0 0 0
Hongwei le GM bent
Huang Ma Vice Incum
52 29 July 2022 0 0 0 0 0
Weijun le GM bent
Wu Ma Vice Incum
52 29 July 2022 0 0 0 0 0
Zhiyong le GM bent
Secretar
Ma Incum 31 December
Luo Yi 50 y of the 0 0 0 0 0
le bent 2020
Board
Deng 12
Ma Forme
Kangche 58 Director 17 April 2012 September 7500 0 0 0 7500
le r
ng 2023
Fe Forme 8 September 30 March
Wen Li 55 Director 0 0 0 0 0
mal r 2006 2023
34ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
e
30
Ma Supervis Forme
Ren Wei 44 15 May 2018 November 2000 0 0 0 2000
le or r 2023
Feng Ma Supervis Forme 28 March
53 2 March 2017 0 0 0 0 0
Hongwei le or r 2023
Total -- -- -- -- -- -- 9500 200 0 0 9700 --
Indicate by tick mark whether any directors or supervisors left or any senior management were disengaged during the Reporting
Period
□Yes □ No
1. Due to the expiration of her term of office Ms. Wen Li no longer holds the position of director of the Company
and does not hold any other position in the Company either; Mr. Feng Hongwei no longer holds the position of
supervisor and still continues to hold other management positions in the Company. For details please refer to the
Announcement No. 2023-017 on the Re-election of the Board of Directors and the Supervisory Committee
disclosed by the Company on 31 March 2023 on China Securities Journal Securities Times and Cninfo
(www.cninfo.com.cn).
2. Due to job change Mr. Deng Kangcheng no longer holds the position of director of the Company and does not
hold any other position in the Company either. For details please refer to the Announcement on Change of
Director (Announcement No. 2023-034) disclosed by the Company on 13 September 2023 on China Securities
Journal Securities Times and Cninfo (www.cninfo.com.cn).
3. Due to job change Mr. Ren Wei no longer holds the position of supervisor of the Company and does not hold
any other position in the Company either. For details please refer to the Announcement on Proposed Change of
Supervisor (Announcement No. 2023-045) disclosed by the Company on 14 November 2023 on China Securities
Journal Securities Times and Cninfo (www.cninfo.com.cn).Change of Directors Supervisors and Senior Management
□ Applicable □ Not applicable
Name Office title Type of change Date of change Reason for change
Tang Xiaoping Chairman of the Board Elected 30 March 2023
Zhang Manhua Director Elected 30 March 2023
Qian Zhong Director Elected 12 September 2023
Li Wenkun Director Elected 30 November 2023
Left for expiration of
Wen Li Director 30 March 2023
term of office
Deng Kangcheng Director Left 12 September 2023 Job change
Lu Haiyan Supervisor Elected 28 March 2023
Wei Junfeng Supervisor Elected 30 November 2023
Left for expiration of
Feng Hongwei Supervisor 28 March 2023
term of office
Ren Wei Supervisor Left 30 November 2023 Job change
2. Biographical Information
Professional backgrounds major work experience and current duties in the Company of the incumbent directors supervisors and
senior management:
Tang Xiaoping: he ever act as CFO and finance minister of Shenzhen HRD Assets Management Company
minister of Financial Operations Management Department of Shenzhen Foreign Labor Service Co. Ltd. and
executive director of Shenzhen Foreign Affairs Service Center Manager of Financing Plan Department deputy
GM secretary of the Board of the Company and deputy secretary of the CPC of the Company. He is currently the
Chairman of the Board GM and secretary of the CPC of the Company.
35ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Qian Zhong: Previously the Director of the Office of the Board of Directors (Strategy Research Office) a
member of the Discipline Inspection Commission and the Head of the Operation Management Department of
ShenZhen Properties & Resources Development (Group) Ltd.; currently a Director a Deputy Secretary of the
Party Committee and the Chairman of the Trade Union Federation of the Company.Wang Jianfei: he was once the minister of the Financial Management Department of Shenzhen Construction
Development (Group) Company vice GM of Hubei SIHC Investment Development Co. Ltd. And now he acts as
the director and CFO of the Company.Sun Minghui: Former the senior director of the Office of the Board of Directors of Shenzhen Investment
Holdings Co. Ltd. and the deputy director of the Finance Department (Settlement Center); currently he is the
director of the Finance Department (Settlement Center) of Shenzhen Investment Holdings Co. Ltd. and a director
of the Company.Zhang Manhua: Previously the Head of the Investment Department of Shenzhen Shenchao Technology
Investment Co. Ltd. a Deputy Head of the Strategic Development Department and Deputy Head of the Capital
Operation Department of Shenzhen Investment Holdings Co. Ltd.; currently the Director of the Legal and Risk
Management Department of Shenzhen Investment Holdings Co. Ltd. and a Director of the Company.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 the Company.Kang Xiaoyue: he was once the staff member of Department of Justice of Jiangxi Province a reporter editor and
head of Special Issue Department of Shenzhen Legal Newspaper. Chief Lawyer senior partner of Guangdong
New Century Law Firm (later renamed Guangdong Wancheng Law Firm). Now he serves as a senior partner of
Beijing Weiheng (Shenzhen) Law Firm and the independent director of the Company.He Zuowen: formerly associate professor of accounting deputy director of teaching and research section and
member of the Disciplinary Committee of Changsha University of Science & Technology partner and deputy
director of Shenzhen Huapeng Certified Public Accountants director and vice GM of Beijing Zhongtian
Huazheng Certified Public Accountants Co. Ltd. (Dahua Certified Public Accountants) as well as head of
Shenzhen Branch of it partner of BDO Certified Public Accountants; advisory expert of Internal Control Standard
st nd th
Committee of the Ministry of Finance (the 1 2 and 4 ) expert of Shenzhen Senior Accountant Review
Committee director of Shenzhen Institute of Certified Public Accountants director of the Investigation
Committee member of the Shenzhen Municipal Social Organization Disciplinary Inspection Committee member
Vice Secretary of CPC &Secretary of the Disciplinary Committee of CPC Shenzhen CPA Industry Committee
etc. Independent Director of Shenzhen Textile (Holdings) Co. Ltd. currently partner of Shenzhen Dahua
International Certified Public Accountants Secretary of CPC General Branch of Shenzhen Branch of Dahua
Certified Public Accountants (Special General Partnership) Chairman of Shenzhen Tianye Tax Agent Co. Ltd.and also served as the independent director of Shenzhen Tongyi Industry Co. Ltd. and the Company. The main
social positions are: external master tutor of Shenzhen University member of Shenzhen CPA Industry Committee
director of Shenzhen Certified Tax Agents Association and Member of the Capital Market Advisory Expert
Committee of the Xinjiang Regulatory Bureau of the China Securities Regulatory Commission expert of the
experts database of State-owned Assets Supervision and Administration Commission of the People’s Government
of Shenzhen Municipality Development and Reform Commission of Shenzhen Municipality Science and
Technology Innovation Commission of Shenzhen Municipality Shenzhen Bureau of Radio Television Culture
Tourism and Sports Shenzhen United Property and Equity Exchange etc.
36ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Mi Xuming: Former lecturer and associate professor at Shenzhen University post-doctor of post-doctoral mobile
station for applied economics of School of Economics of Xiamen University visiting scholar at the University of
Exeter; currently professor and master tutor of Shenzhen University and at the same time as the independent
directors of Shenzhen Farben Information Technology Co. Ltd. OFILM Group Co. Ltd. and the Company.Wang Jiangtao: Former Deputy General Manager and Secretary of the Party Branch of Shenzhen Foreign
Economic and Trade Investment Company Director Secretary of the Disciplinary Committee Secretary of CPC
and Chairman of the Supervisory Committee of Shenzhen Architecture Design General Research Institute;
currently Chairman of the Supervisory Committee Secretary of the Disciplinary Committee and member of CPC
of the Company.Li Yufei: she ever worked as the Assistant to the Manager of the Investment Department and Assistant to the
Manager & Vice Manager of Assets Management Centre as well as the Senior Management Staff of Enterprise
Department I and Enterprise Department II (Journal Center) in Shenzhen Investment Holdings Co. Ltd. Now she
serves as the deputy director of Discipline Inspection Office in Shenzhen Investment Holdings Co. Ltd. and the
supervisor of the Company.Wei Junfeng: Previously a Senior Managing Officer of the Strategic Research Department (Office of the Board
of Directors) of Shenzhen Investment Holdings Co. Ltd.; currently a Deputy Head of the Strategic Research
Department (Office of the Board of Directors) of Shenzhen Investment Holdings Co. Ltd. and a Supervisor of the
Company.Lin Jun: She once was the Vice Chief and Chief of the Party-Mass Work Department. And she has been acting as
a supervisor of the Company the Vice Discipline Inspection Secretary and Director of Discipline Inspection and
Supervision Office (Office of the Board of Supervisors).Lu Haiyan: Previously a Deputy Head of the Financial Department and a Deputy Head of the Strategic
Development Department (Office of the Board of Directors) of Shenzhen Foreign Service Group Co. Ltd.;
currently a supervisor and a deputy manager of the Audit Department (presiding over the work of the Audit
Department) of the Company.Zhang Hongwei: once served as GM of Shenzhen Urban Construction Investment Development Co. Ltd. Hefei
Ruifa Urban Construction Investment Development Co. Ltd. manager of the Company's Development
Department Sales Department Project II Department Project Management Department; currently deputy GM of
the Company member of CPC Chairman of Jianbang Group and GM of Longgang Development Company.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 the Company.Wu Zhiyong: Once served as the Chairman and GM of Shenzhen Petrel Hotel Co. Ltd. and Deputy Manager of
Property Management Department and Asset Operation Center of the Company and now serving as the Deputy
GM member of the CPC of the Company of the Company.Luo Yi: He was once the Vice GM Deputy Director of Board Secretariat and Securities Representative in the
Shantou branch of the Company. And he now serves as the Board Secretary and Director of the Board Secretariat
in the Company.Offices held concurrently in shareholding entities:
□ Applicable □ Not applicable
Remuner
ation or
End of
Name Shareholding entity Office held in the shareholding entity Start of tenure allowanc
tenure
e from
the
37ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
sharehol
ding
entity
Sun
Shenzhen Investment Chief of Financial Department
Minghu 11 November 2020 Yes
Holdings Co. Ltd (Settlement Center)
i
Zhang Shenzhen Investment
Head of Legal and Risk Management 19 October 2018 Yes
Manhua Holdings Co. Ltd
Shenzhen Investment Deputy Director of Discipline Inspection
Li Yufei 9 July 2015 Yes
Holdings Co. Ltd Office
Deputy Director of Strategic Research
Wei Shenzhen Investment
Department (Office of the Board of 25 June 2018 Yes
Junfeng Holdings Co. Ltd
Directors)
Offices held concurrently in other entities:
□ Applicable □ Not applicable
Remuner
ation or
Office held in End of allowanc
Name Other entity Start of tenure
the entity tenure e from
the
entity
Sun Shenzhen Highway Passenger Transportation
Supervisor 16 June 2017 No
Minghui Service Centre Co. Ltd.Sun
China Nanshan Development (Group) Co. Ltd. Supervisor 17 October 2017 No
Minghui
Sun
ULTRARICHINTERNATIONAL LIMITED Director 11 November 2020 No
Minghui
Sun
Hubei SIHC Investment Development Co. Ltd. Director 11 November 2020 No
Minghui
Sun
Shenzhen Textile (Holdings) Co. Ltd. Director 10 February 2021 No
Minghui
Sun
Hubei SIHC Investment Development Co. Ltd. Director 30 June 2021 No
Minghui
Sun
Shenzhen Textile (Holdings) Co. Ltd. Director 18 October 2021 No
Minghui
Sun
Guotai Junan Securities Co.Ltd. Director 26 October 2023 No
Minghui
Sun
Guotai Junan Investment Management Co.Ltd. Director 26 October 2023 No
Minghui
Zhang Shenzhen Properties & Resources Development
Supervisor 31 July 2014 No
Manhua (Group) Ltd.Zhang Shenzhen Architecture Design General Research
Director 11 July 2017 No
Manhua Institute
Zhang
Shenzhen Asset Management Co. Ltd. Director 23 April 2020 No
Manhua
Zhang Shenzhen Bay Area Urban Construction and
Director 16 August 2021 No
Manhua Development Co. Ltd.Zhang Shenzhen High-Tech Zone Investment
Director 25 November 2022 No
Manhua Development Group Co. Ltd.Zhang
Shenzhen Corporate Compliance Association Vice-president 9 January 2023 No
Manhua
Shenzhen Water Planning and Design Institute
Li Wenkun Director 4 September 2023 No
Co. Ltd.Li Yufei Shenzhen Dapengwan Huaqiao Tomb Director 19 November 2015 No
Li Yufei Shenzhen Shentou Cultural Investment Co. Ltd. Director 2 September 2022 No
Wei Shenzhen Environmental Protection Technology
Supervisor 17 October 2017 No
Junfeng Group Co. Ltd.Wei Shenzhen Highway Passenger Transportation
Director 24 August 2023 No
Junfeng Service Centre Co. Ltd.Punishments imposed in the recent three years by the securities regulator on the incumbent directors supervisors and senior
38ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
management as well as those who left in the Reporting Period:
□Applicable □ Not applicable
3. Remuneration of Directors Supervisors and Senior Management
Decision-making procedure determination basis and actual payments of remuneration for directors supervisors and senior
management:
The remuneration of the Company's directors supervisors and senior managers 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 supervisors and senior management for the Reporting Period
Unit: RMB’0000
Total before-tax Any
Incumbent/For remuneration remuneration
Name Gender Age Office title
mer from the from related
Company party
Tang Chairman of the Board
Male 54 Incumbent 98.7 No
Xiaoping GM
Qian Zhong Male 50 Director Incumbent 22.6 No
Wang Jianfei Male 51 Director and CFO Incumbent 107.7 No
Sun Minghui Male 43 Director Incumbent 0 Yes
Zhang
Male 49 Director Incumbent 0 Yes
Manhua
Li Wenkun Male 51 Director Incumbent 0 Yes
Kang
Male 60 Independent director Incumbent 10.8 No
Xiaoyue
He Zuowen Male 62 Independent director Incumbent 10.8 No
Mi Xuming Male 49 Independent director Incumbent 10.8 No
Wang Chairman of the
Male 58 Incumbent 111.42 No
Jiangtao Supervisory Committee
Li Yufei Female 46 Supervisor Incumbent 0 Yes
Wei Junfeng Male 45 Supervisor Incumbent 0 Yes
Lin Jun Female 55 Supervisor Incumbent 61.86 No
Lu Haiyan Female 47 Supervisor Incumbent 41.17 No
Zhang
Male 58 Vice GM Incumbent 87.05 No
Hongwei
Huang
Male 52 Vice GM Incumbent 70.07 No
Weijun
Wu Zhiyong Male 52 Vice GM Incumbent 81.5 No
Luo Yi Male 50 Secretary of the Board Incumbent 62.76 No
Deng
Male 58 Director Former 0 Yes
Kangcheng
Wen Li Female 55 Director Former 0 Yes
Ren Wei Male 44 Supervisor Former 0 Yes
Feng
Male 53 Supervisor Former 62.86 No
Hongwei
Total -- -- -- -- 840.09 --
Other notes
□Applicable □ Not applicable
39ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
VI Performance of Duty by Directors in the Reporting Period
1. Board Meeting Convened during the Reporting Period
Meeting Date of the meeting Disclosure date Index to disclosed information
Announcement on Resolutions of the 77th
th th Meeting of the 7
th Board of Directors (No.:
The 77 Meeting of the 7
19 January 2023 20 January 2023 2023-003) disclosed on China Securities
Board of Directors
Journal Securities Times and
www.cninfo.com.cn.Announcement on Resolutions of the 78th
th th Meeting of the 7
th Board of Directors (No.:
The 78 Meeting of the 7
17 March 2023 18 March 2023 2023-007) disclosed on China Securities
Board of Directors
Journal Securities Times and
www.cninfo.com.cn.Announcement on Resolutions of the 1st
Meeting of the 8th Board of Directors (No.:
The 1st Meeting of the 8th Board
30 March 2023 31 March 2023 2023-015) disclosed on China Securities
of Directors
Journal Securities Times and
www.cninfo.com.cn.Announcement on Resolutions of the 2nd
nd th Meeting of the 8
th Board of Directors (No.:
The 2 Meeting of the 8 Board
28 April 2023 29 April 2023 2023-021) disclosed on China Securities
of Directors
Journal Securities Times and
www.cninfo.com.cn.Announcement on Resolutions of the 3rd
rd th Meeting of the 8
th Board of Directors (No.:
The 3 Meeting of the 8 Board
28 July 2023 29 July 2023 2023-026) disclosed on China Securities
of Directors
Journal Securities Times and
www.cninfo.com.cn.Announcement on Resolutions of the 4th
Meeting of the 8thth th Board of Directors (No.: The 4 Meeting of the 8 Board
25 August 2023 28 August 2023 2023-028) disclosed on China Securities
of Directors
Journal Securities Times and
www.cninfo.com.cn.Announcement on Resolutions of the 5th
Meeting of the 8thth Board of Directors (No.: The 5 Meeting of the 8th Board
18 October 2023 19 October 2023 2023-035) disclosed on China Securities
of Directors
Journal Securities Times and
www.cninfo.com.cn.Announcement on Resolutions of the 6th
th Meeting of the 8
th Board of Directors (No.:
The 6 Meeting of the 8th Board
27 October 2023 28 October 2023 2023-036) disclosed on China Securities
of Directors
Journal Securities Times and
www.cninfo.com.cn.Announcement on Resolutions of the 7th
th Meeting of the 8
th Board of Directors (No.:
The 7 Meeting of the 8th Board
29 December 2023 30 December 2023 2023-050) disclosed on China Securities
of Directors
Journal Securities Times and
www.cninfo.com.cn.
2. Attendance of Directors at Board Meetings and General Meetings
Attendance of directors at board meetings and general meetings
Total number Board Board Board Board The director General
Director
of board meetings meetings meetings meetings the failed to meetings
40ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
meetings the attended on attended by attended director attend two attended
director was site way of through a failed to consecutive
eligible to telecommuni proxy attend board
attend cation meetings
(yes/no)
Tang
9 7 2 0 0 No 4
Xiaoping
Qian Zhong 3 1 2 0 0 No 1
Wang Jianfei 9 7 2 0 0 No 4
Sun Minghui 9 5 4 0 0 No 3
Zhang
7 4 3 0 0 No 3
Manhua
Li Wenkun 1 0 1 0 0 No 0
Kang
9 5 4 0 0 No 4
Xiaoyue
He Zuowen 9 6 3 0 0 No 4
Mi Xuming 9 6 3 0 0 No 3
Deng
6 6 0 0 0 No 3
Kangcheng
Wen Li 2 1 1 0 0 No 0
Why any independent director failed to attend two consecutive board meetings:
Not applicable
3. Objections Raised by Directors on Matters of the Company
Indicate by tick mark whether any directors raised any objections on any matter of the Company.□Yes □ No
No such cases in the Reporting Period.
4. Other Information about the Performance of Duty by Directors
Indicate by tick mark whether any suggestions from directors were adopted by the Company.□Yes □ No
Suggestions from directors adopted or not adopted by the Company:
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.VII Performance of Duty by Specialized Committees under the Board in the Reporting Period
N Othe D
u r et
m infor ail
be mati s
Com Me
r on ab
mitt mbe Convened date Content Important opinions and suggestions raised
of abou ou
ee rs
m t the t
ee perf iss
tin orm ue
gs ance s
41ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
co of wi
nv duty th
en ob
ed je
cti
on
s
(if
an
y)
It is believed that the Company has chosen and
applied appropriate accounting policies and made
reasonable accounting estimates in accordance
with the provisions of the new Accounting
Standards for Business Enterprises. The
Deliberation on the
Company has always been cautious about
14 January 2023 Company’s 2022
changes in accounting policies and accounting
financial statements
estimates. There is no use or abuse of changes in
accounting policies or accounting estimates to
adjust profits. The financial statements prepared
Aud by the Company are true and reliable with
He
it complete contents.Zuo
Com It is believed that the Company’s 2022 financial
wen
mitt Deliberation on the statements prepared by Grant Thornton China
Sun
ee preliminary audit (LLP) comply with all provisions of the
Min
of 4 opinions of Grant Accounting Standards for Business Enterprises
ghui 10 March 2023
the Thornton China (LLP) and truly and completely represent the
Mi
Boar on the Company’s 2022 Company’s financial position as of 31 December
Xu
d of financial statements 2022 and its operating results and cash flows for
min
Dire the year 2022 in all material respects.g
ctors Deliberation on the
summary of the 2022
It is believed that Grant Thornton China (LLP)
audit service provided
17 March 2023 has completed the audit of the Company’s 2022
by Grant Thornton
financial statements well.China (LLP) for the
Company
It is agreed to engage Pan-China Certified Public
Deliberation on the Accountant (LLP) as the auditor of the
proposed engagement Company's financial statements and internal
19 October 2023
of the audit firm for control for the year 2023 with the auditor's fee of
2023 RMB510000 for the financial statements and
RMB210000 for the internal control.It is believed that the remuneration decision-
Rem Deliberation on the making procedures for the Company’s directors
annual remuneration of supervisors and senior management are
uner
directors supervisors compliant the remuneration payment standards
atio 17 March 2023 and senior management for the Company’s directors supervisors and
n Mi as disclosed in the senior management are in line with the
and Xu Company’s 2022 annual regulations of the remuneration system and that
App min report the remuneration disclosed in the 2022 annual
raisa g report is true and accurate.l Wan It is considered that the Company's current
adjustment of the allowances for Independent
Com g 6
Directors has taken into account the standard of
mitt Jianf allowances for Independent Directors of listed
ee ei
Deliberation on the companies in the same industry and the level of
of He economic development in the region with the
adjustment of the
the Zuo 30 March 2023 comprehensive consideration of the actual
allowances for
Boar wen situation of the Company's operation and
Independent Directors management as well as the contributions made
d of
by the Independent Directors to the standardised
Dire operation and future development of the
ctors Company. As a result the proposed adjustment of
the allowances is reasonable.
42ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Deliberation on the
Program for Assessing
Group Deputy General It is agreed to adopt the Program for Assessing
23 July 2023 Managers Huang Group Deputy General Managers Huang Weijun
Weijun and Wu and Wu Zhiyong During Probationary Period.Zhiyong During
Probationary Period
Deliberation on the
It is agreed to adopt the assessment report and
result for Assessing probationary assessment proposal of the
Group Deputy General assessment working group: Huang Weijun and
18 August 2023 Managers Huang Wu Zhiyong Deputy General Managers of the
Weijun and Wu Group were identified to be "qualified" in the
Zhiyong During probationary assessment results and were
regularised on schedule.Probationary Period
Deliberation on the
adjustment of It is considered that the adjusted Implementation
Plan for Performance Appraisal of Senior
Implementation Plan for
12 October 2023 Management in 2022 conforms to the actual
Performance Appraisal situation of the Company and the assessment
of Senior Management indicators are set scientifically and reasonably.of the Company in 2022
It is held that:
1.The plan for performance assessment and
application of the Company's Senior Management
for the year 2022 conforms to the actual situation
and can be used to more accurately and
comprehensively evaluate the assessment objects
without circumstances of jeopardizing the
interests of the Company and its shareholders
Review of the results of
especially those of the medium and small
performance appraisal
shareholders.of senior management 2. The Implementation Plan for Performance
members of SPG in Assessment of SPG's Senior Management for the
2022 and the result Year 2023 satisfies the requirements put forward
application plan the in the Management Measures for Business
Implementation Plan for Performance Appraisal and Remuneration
Management of Senior Management Members
19 October 2023 Performance Appraisal
and the assessment indicators are set scientifically
of Senior Management and reasonably without circumstances of
Members in 2023 and jeopardizing the interests of the Company and its
the 2023 Statement of shareholders especially those of the medium and
Responsibility of Senior small shareholders.Management Members 3. The responsibility statement of Senior
Management for business performance for the
for Business
year 2023 satisfies the requirements for the
Performance assessment indicators of business performance
for the year 2023 is combined with the key work
points for the year 2023 and the division of work
among the members of the leading group and is
scientific and reasonable without circumstances
of jeopardizing the interests of the Company and
its shareholders especially those of the medium
and small shareholders.No Kan Tang Xiaoping Deng Kangcheng Wang Jianfei
min g Zhang Manhua and Sun Minghui are proposed as
atio Xiao Deliberation on the
candidates for non-independent directors of the
n yue Election of the
13 January 2023 th
Com Den 8 Board of Directors of the Company; Kang Company’s Board of
mitt g Xiaoyue He Zuowen and Mi Xuming are
2 Director
ee Kan proposed as candidates for independent directors
of gche of the 8th Board of Directors of the Company.the ng
Deliberation on the
Boar He It is agreed to recommend Qian Zhong as a
18 August 2023
d of Zuo nomination of Qian director of the Company.Dire wen Zhong as a director of
43ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
ctors the Company
Kan
g
Xiao
yue Deliberation on the
Qian nomination of Li It is agreed to recommend Li Wenkun as a
1 19 October 2023
Zho Wenkun as a director of director of the Company.ng the Company
He
Zuo
wen
VIII Performance of Duty by the Supervisory Committee
Indicate by tick mark whether the Supervisory Committee found any risk to the Company during its supervision in the Reporting
Period.□Yes □ No
The Supervisory Committee raised no objections in the Reporting Period.IX Employees
1. Number Functions and Educational Backgrounds of Employees
Number of in-service employees of the Company as the parent
104
at the period-end
Number of in-service employees of major subsidiaries at the
163
period-end
Total number of in-service employees at the period-end 267
Total number of paid employees in the Reporting Period 267
Number of retirees to whom the Company as the parent or its
0
major subsidiaries need to pay retirement pensions
Functions
Function Employees
Production 127
Sales 21
Technical 15
Financial 24
Administrative 80
Total 267
Educational backgrounds
Category Number
Doctors 2
Masters 22
Bachelors 111
College graduates 67
Technical secondary school graduates 8
High school graduates and below 57
Total 267
2. Employee 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.
44ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
3. Employee Training Plans
The Company established annual training plan in line with Measures for the Management of Employee Training
The Company adopts internal training hires experts give lectures to the Company or participate professional
training train the on job employees with job knowledge professional skills rules and regulations the business
process etc. which enrich and renew the professional knowledge enhance the comprehensive quality and
business skills of the employees.
4. Labor Outsourcing
□Applicable □ Not applicable
X Profit Distributions (in the Form of Cash and/or Stock)
How the profit distribution policy especially the cash dividend policy was formulated executed or revised in the Reporting Period:
□Applicable □ Not applicable
Indicate by tick mark whether the Company fails to put forward a cash dividend proposal for shareholders despite the facts that the
Company has made profits in the Reporting Period and the profits of the Company as the parent distributable to shareholders are
positive.□Applicable □ Not applicable
Final Dividend Plan for the Reporting Period
□Applicable □ Not applicable
No such cases in the Reporting Period.XI Equity Incentive Plans Employee Stock Ownership Plans or Other Incentive Measures for
Employees
□Applicable □ Not applicable
No such cases in the Reporting Period.XII Establishment and Execution of the Internal Control System for the Reporting Period
1. Establishment and Execution of the Internal Control System
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. In
accordance with the requirements of the standard system for enterprise internal control and relevant regulations
the Company has maintained effective internal control over financial reporting in all material respects. No major
deficiencies in internal control not related to financial reporting have been found and no factors affecting the
evaluation conclusion of internal control effectiveness have occurred. 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.
45ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
2. Material Internal Control Weaknesses Identified for the Reporting Period
□Yes □ No
XIII Management and Control over Subsidiaries by the Company for the Reporting Period
Subsidiar Integration Integration Countermeasures Settlement Follow-up
Problem
y plan progress taken progress settlement plan
N/A N/A N/A N/A N/A N/A N/A
XIV Internal Control Evaluation Report or Independent Auditor’s Report on Internal
Control
1. Internal Control Evaluation Report
Disclosure date of the internal control self-evaluation report 30 March 2024
2023 Internal Control Self-Evaluation Report on
Index to the disclosed internal control self-evaluation report
www.cninfo.com.cn
Evaluated entities’ combined assets as % of consolidated total assets 83.94%
Evaluated entities’ combined operating revenue as % of consolidated
99.87%
operating revenue
Identification standards for internal control weaknesses
Weaknesses in internal control over financial Weaknesses in internal control not related to financial
Type
reporting reporting
The criterion of quality of the recognition of defects of
internal control in the non-financial statements mainly were
order of severity of defect involving business nature the
direct or potential negative influence nature and the
The Company in line with the actual situation when
influence scope and other factors. If the follows events or
the follows events or indications happen which
indicators occur there may be serious or important defects
means there probably existing serious or important
of internal control in the non-financial statements:(1) Lack
defects in the financial report; (1) the directors
democratic decision-making process if lack significant
supervisors and senior executives were fraud. (2)
problem decision-making important appointment and
Certified Public Accountant find that there is a
Nature dismissal of cadres significant project investment decision-
significant error in the financial report however the
standard making; usage of large capital (three important one large);
internal control did not discover it when conducting
(2) Unscientific decision-making process such as the major
internal control; (3) The Audit Committee under the
decision-making errors has caused a serious property loss
Board and Internal Audit Service's supervision to the
to the company; (3) Seriously violating state laws and
internal control is invalid. (4) The accounting
regulations; (4) Loss of key management personnel or
personnel were without necessary qualities to
important talent; (5) Negative news media appear
complete the preparation of financial statements.frequently and widely spread; (6) The results of the internal
control evaluation especially large or significant defects
have not been corrected. (7) Important business systems
lack control rules or systemic failure.Serious defects: the defects or defect group may lead
to the financial results misstatement or potential
The criterion of quantity of the recognition of defects of
losses >3% of net assets; important defects: 1% of net
Quantitati internal control in the non-financial statements mainly were
assets
ve amount of direct economy losses in line with the criterion
financial results misstatement or potential losses ≤
standard of quantity of the recognition of defects of internal control
3% of net assets; General defects: the defects or
in financial report of the Company.defect group may lead to the financial results
misstatement or potential losses ≤ 1% of net assets.Number of material weaknesses in
0
internal control over financial reporting
Number of material weaknesses in
internal control not related to financial 0
reporting
Number of serious weaknesses in
0
internal control over financial reporting
Number of serious weaknesses in 0
46ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
internal control not related to financial
reporting
2. Independent Auditor’s Report on Internal Control
□ Applicable □ Not applicable
Opinion paragraph in the independent auditor’s report on internal control
We believe that Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. maintained effective internal control
of financial statements in all significant aspects on 31 December 2023 in accordance with Basic Standards for Internal Control and
relevant regulations.Independent auditor’s report on internal control disclosed or
Disclosed
not
Disclosure date 30 March 2024
Index to such report disclosed Report on Internal Control disclosed on www.cninfo.com.cn.Type of the auditor’s opinion Unmodified unqualified opinion
Material weaknesses in internal control not related to financial
No
reporting
Indicate by tick mark whether any modified opinion is expressed in the independent auditor’s report on the Company’s internal
control.□Yes □ No
Indicate by tick mark whether the independent auditor’s report on the Company’s internal control is consistent with the internal
control self-evaluation report issued by the Company’s Board.□Yes □ No
XV Rectifications of Problems Identified by Self-inspection in the Special Action for Listed
Company Governance
1. The Company has completed the re-election of its Board of Directors and the Board of Supervisors.
On 30 March 2023 the Company held the 1st extraordinary general meeting of shareholders of 2023 at which the
non-independent directors and independent directors of the 8th Board of Directors and the non-employee
supervisors of the 8th Board of Supervisors were elected and together with the employee representative
supervisors who were elected by the workers’ congress of the Company formed the 8th Board of Directors and
the 8th Board of Supervisors.
2. The Company has continuously improved the corporate governance system.
In 2023 in accordance with the requirements of such regulations as the Guidelines on the Articles of Association
of Listed Companies the Management Measures for Independent Directors of Listed Companies the Rules for
Stock Listing of Shenzhen Stock Exchange and the Self-regulation Guidelines for Listed Companies of Shenzhen
Stock Exchange No. 1-Standardized Operation of Listed Companies on the Main Board the Company has
completed the revisions of four governance policies of the Company including the articles of association investor
relations management rules the working system for independent directors and the implementation rules for the
Strategy Committee of the Board of Directors.
47ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Part V Environmental and Social Responsibility
I Major Environmental Issues
Indicate by tick mark whether the Company or any of its subsidiaries is a heavily polluting business identified by the environmental
protection authorities of China.□Yes □ No
Administrative penalties imposed for environmental problems during the Reporting Period
Influence on production and Rectification
Name Reason Case Result
operation measures
N/A N/A N/A N/A N/A N/A
Other environmental information disclosed with reference to the heavily polluting business
The Company and its subsidiaries are not imposed any administrative penalties for environmental problems
during the Reporting Period.Measures taken to decrease carbon emission in the Reporting Period and corresponding effects
□Applicable □ Not applicable
Reason for failure of disclosing other environmental information
The Company and its subsidiaries isn’t a heavily polluting business identified by the environmental protection
authorities of China.II Social Responsibility
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 2023 Environmental Social and Corporate
Governance (ESG) Report disclosed on Cninfo (www.cninfo.com.cn).III Consolidation and Expansion of Poverty Alleviation Outcomes 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 2023 Environmental Social and Corporate Governance (ESG) Report disclosed on Cninfo
(www.cninfo.com.cn).
48ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Part VI Significant Events
I Fulfillment of Commitments
1. Commitments of the Company’s De Facto Controller Shareholders Related Parties and Acquirers as
well as the Company Itself and Other Entities Fulfilled in the Reporting Period or Ongoing at the Period-
End
□ Applicable □ Not applicable
Type of Date of
Commitm Promiso Term of
commitme Details of commitment commitment Fulfillment
ent r commitment
nt making
To avoid horizontal competition Shenzhen
Investment Holdings Co. Ltd. made such a
commitment: For the Company’s existing
business that has horizontal competition
with ShenZhen Properties & Resources
Development (Group) Ltd. Shenzhen
Investment Holdings Co. Ltd. will within
the scope permitted by laws and
regulations timely launch one or several of
Shenzhe the following solutions that is practically
Other
n feasible and complete the implementation
commitm Avoiding
Investm of the relevant solution(s) before 9 Before 9
ents made horizontal 10 September
ent November 2024 to solve the existing November Ongoing
to competitio 2021
Holding horizontal competition problem: (1) Solve 2024
minority n
s Co. the horizontal competition between the two
interests
Ltd. 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).Fulfilled on time Yes
Specific reasons for failing to fulfill
commitments on time and plans for N/A
next step (if any)
2. Where there had been an earnings forecast for an asset or project and the Reporting Period was still
within the forecast period explain why the forecast has been reached for the Reporting Period.□Applicable □ Not applicable
II Occupation of the Company’s Capital by the Controlling Shareholder or Its Related Parties
for Non-Operating Purposes
□Applicable □ Not applicable
No such cases in the Reporting Period.
49ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
III Irregularities in the Provision of Guarantees
□Applicable □ Not applicable
No such cases in the Reporting Period.IV Explanations Given by the Board of Directors Regarding the Latest “Modified Opinion”
on the Financial Statements
□Applicable □ Not applicable
V Explanations Given by the Board of Directors the Supervisory Board and the Independent
Directors (if any) Regarding the Independent Auditor's “Modified Opinion” on the Financial
Statements of the Reporting Period
□Applicable □ Not applicable
VI YoY Changes to Accounting Policies Estimates or Correction of Material Accounting
Errors
□ Applicable □ Not applicable
For details see ―(XXXII) Significant changes in accounting policies‖ under ―III. Significant accounting policies and estimates‖ in
―Part X Financial Statements‖.VII YoY Changes to the Scope of the Consolidated Financial Statements
□Applicable □ Not applicable
No such cases in the Reporting Period.VIII Engagement and Disengagement of Independent Auditor
Current independent auditor
Name of the domestic independent auditor Pan-China Certified Public Accountants (LLP)
The Company’s payment to the domestic independent auditor
72
(RMB’0000)
How many consecutive years the domestic independent auditor
1
has provided audit service for the Company
Names of the certified public accountants from the domestic
Wang Huansen Cai Xiaodong
independent auditor writing signatures on the auditor’s report
How many consecutive years the certified public accountants
from the domestic independent auditor have provided audit 1
service for the Company
Indicate by tick mark whether the independent auditor was changed for the Reporting Period.□Yes □No
Indicate by tick mark whether the independent auditor was changed in the audit period
□Yes □ No
Indicate by tick mark whether the approval procedure for changing the independent auditor was performed
□Yes □No
Detailed explanation of the change of independent auditor
50ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Grant Thornton China (LLP) has provided audit services for the Company for four consecutive years since 2019
and issued a standard unqualified audit report for the Company for each of the years. After comprehensive
consideration and prudent study of the Company's needs for future business development the Company has
selected through public bidding Pan-China Certified Public Accountant (LLP) as the accounting firm for the year
2023.
The above-mentioned events have been respectively deliberated and adopted at the 6th Meeting of the 8th Board
of Directors the 4th Meeting of the 8th Supervisory Committee and the 3rd Extraordinary General Meeting of
2023 of the Company with the details seen in the Resolutions of the 6th Meeting of the 8th Board of Directors
(Announcement No. 2023-036) the Resolutions of the 4th Meeting of the 8th Supervisory Committee
(Announcement No. 2023-037) and the Announcement on Proposed Engagement of Accounting Firm for the Year
of 2023 (Announcement No. 2023-040) and the Resolutions of the 3rd Extraordinary General Meeting of 2023
(Announcement No. 2023-047) dated 28 October and 1 December 2023 and disclosed on China Securities
Journal Securities Times and Cninfo (www.cninfo.com.cn).Independent auditor financial advisor or sponsor engaged for the audit of internal controls:
□ 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 Possibility of Delisting after Disclosure of this Report
□Applicable □ Not applicable
X Insolvency and Reorganization
□Applicable □ Not applicable
No such cases in the Reporting Period.XI Major Legal Matters
□ Applicable □ Not applicable
Involved
Index to
General amount Provisio Disclosure
Progress Decisions and effects Execution of decisions disclosed
information (RMB’0 n date
information
000)
Xi’an Business
Shaanxi High People’s
Tourism Company
Court Sold all assets
Limited (hereinafter
of Business Company
referred to as ―Business
by auction in
Company‖) had to pay
accordance with laws
for the compensation
in 2004. The applicant
RMB36.62 million and Interim
has received
the relevant interest Report 2023
RMB15.20 million.Xi’an Project In (from 14 September 1998 28 August (No.: 2023-
2154 No Now Business
Lawsuit execution to the payment day) to Company has no 2023 031) on
Xi’an Fresh Peak
executable properties www.cninfo
Company within one
and Xi’an Joint .com.cn
month after the judgment
Commission on
entering into force. If the
Commerce has been
Business Company failed
refusing to execute the
to pay in time it had to
ruling. It is difficult to
pay double debt interests
recover the rest.to Xi’an Fresh Peak
51ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Company for the overdue
period; * Xi’an Joint
Commission on
Commerce had jointly
and severally obligation
of the interests of the
compensation; .*
Business Company shall
bear RMB227500 of the
acceptance fee and the
security fee.As Jianbang Group is
incapable of paying the
commercial bills due in
January 2022 which total
RMB177151400
Huizhou Mingxiang
Economic Information
Consulting Co. Ltd.Huizhou Huiyang Hongfa Interim
Judgment SPG is actively
Industry & Trade Co. Report 2023
was negotiating with
Lawsuit of bill 17715.1 Ltd. and Huizhou 28 August (No.: 2023-
No rendered Jianbang and the
dispute 4 Jinlongsheng Industrial 2023 031) on
in the first plaintiffs for an all-
Co. Ltd. brought a www.cninfo
instance inclusive solution.lawsuit on the bill dispute .com.cn
to the People’s Court of
Huiyang District. The
Huiyang District Court
ruled at first instance in
March 2023 that
Jianbang should pay the
acceptance bill amount
and interest.Announcem
ent on the
The In January 2024 the
Progress of
verdict Company received a civil
Contractual The verdict has been Litigation
39568.8 has been judgment of the first 3 February
disputes over No rendered in the first Matters
5 rendered instance issued by the 2024
loans instance (No.: 2024-
in the first Shenzhen Luohu District
003) on
instance People's Court.www.cninfo.com.cn
Announcem
ent on
Joint venture and
Litigation
cooperative real The first The case was heard in
The first trial has been 8 December Matters
estate 74357.5 No trial has February 2024 and has
held 2023 (No.: 2023-
development been held not yet been decided.
048) on
contract disputes
www.cninfo.com.cn
Announcem
ent on
Litigation
Contractual The first The case was heard in
41952.2 The first trial has been 13 January Matters
disputes over No trial has March 2024 and has not
9 held 2024 (No.: 2024-
loans been held yet been decided.
001) on
www.cninfo.com.cn
52ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
XII Punishments and Rectifications
□Applicable □ Not applicable
No such cases in the Reporting Period.XIII Credit Quality of the Company as well as Its Controlling Shareholder and Actual
Controller
□Applicable □ Not applicable
XIV Major Related-Party Transactions
1. Continuing Related-Party Transactions
□Applicable □ Not applicable
No such cases in the Reporting Period.
2. Related-Party Transactions Regarding Purchase or Sales of Assets or Equity Interests
□Applicable □ Not applicable
No such cases in the Reporting Period.
3. Related Transactions Regarding Joint Investments in Third Parties
□Applicable □ Not applicable
No such cases in the Reporting Period.
4. Amounts Due to and from Related Parties
□Applicable □ Not applicable
No such cases in the Reporting Period.
5. Transactions with Related Finance Companies
□Applicable □ Not applicable
The Company did not make deposits in receive loans or credit from and was not involved in any other finance business with any
related finance company or any other related parties.
6. Transactions with Related Parties by Finance Companies Controlled by the Company
□Applicable □ Not applicable
The finance company controlled by the Company did not make deposits receive loans or credit from and was not involved in any
other finance business with any related parties.
53ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
7. Other Major Related-Party Transactions
□Applicable □ Not applicable
No such cases in the Reporting Period.XV Major Contracts and Execution thereof
1. Entrustment Contracting and Leases
(1) Entrustment
□Applicable □ Not applicable
No such cases in the Reporting Period.
(2) Contracting
□Applicable □ Not applicable
No such cases in the Reporting Period.
(3) Leases
□Applicable □ Not applicable
No such cases in the Reporting Period.
2. Major Guarantees
□ Applicable □ Not applicable
Unit: RMB’0000
Guarantees provided by the Company as the parent and its subsidiaries for external parties (exclusive of those for subsidiaries)
Disclosu
Obligor re date Guarante
Actual
of the Line of Actual Type of Counter Term of Having e for a
guarante Collatera
guarante guarante occurren guarante guarante guarante expired related
e
e line e ce date e l (if any) e (if any) e or not party or amount
announc not
ement
Guarantees provided by the Company as the parent for its subsidiaries
Disclosu
re date Guarante
Actual
of the Line of Actual Type of Counter Term of Having e for a
guarante Collatera
Obligor guarante guarante occurren guarante guarante guarante expired related
e
e line e ce date e l (if any) e (if any) e or not party or amount
announc not
ement
Shenzhe From the
n SPG 100% date of
18
Chuanqi 17 June equity signing
March 50000 15047 Pledge Not Not
Real 2022 interests the
2022
Estate of guarante
Develop Shenzhe e
54ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
ment n SPG contract
Co. Ltd. Chuanqi to the
Real date
Estate when all
Develop guarante
ment ed debts
Co. Ltd. are
held by uncondit
the ionally
Compan and
y irrevoca
bly paid
off in
full.Total approved line for such guarantees in the Total actual amount of such guarantees in the
5000015047
Reporting Period (B1) Reporting Period (B2)
Total approved line for such guarantees at the end of Total actual balance of such guarantees at the end
5000015047
the Reporting Period (B3) of the Reporting Period (B4)
Guarantees provided between subsidiaries
Disclosu
re date Guarante
Actual
of the Line of Actual Type of Counter Term of Having e for a
guarante Collatera
Obligor guarante guarante occurren guarante guarante guarante expired related
e
e line e ce date e l (if any) e or not party or
amount e (if any)
announc not
ement
Total guarantee amount (total of the three kinds of guarantees above)
Total guarantee line approved in the Reporting Total actual guarantee amount in the Reporting
5000015047
Period (A1+B1+C1) Period (A2+B2+C2)
Total approved guarantee line at the end of the Total actual guarantee balance at the end of the
5000015047
Reporting Period (A3+B3+C3) Reporting Period (A4+B4+C4)
Total actual guarantee amount (A4+B4+C4) as % of the Company’s net assets 4.08%
Of which:
Balance of guarantees provided for shareholders actual controller and their
0
related parties (D)
Balance of debt guarantees provided directly or indirectly for obligors with an
0
over 70% debt/asset ratio (E)
Amount by which the total guarantee amount exceeds 50% of the Company’s net
0
assets (F)
Total of the three amounts above (D+E+F) 0
Compound guarantees
3. Cash Entrusted to Other Entities for Management
(1) Cash Entrusted for Wealth Management
□ Applicable □ Not applicable
Overview of cash entrusted for wealth management in the Reporting Period
Unit: RMB’0000
Unrecovered
Unrecovered overdue amount
Type Funding source Amount Undue amount
overdue amount with provision for
impairment
Others Self-owned funds 87934.02 87934.02 0 0
Total 87934.02 87934.02 0 0
High-risk entrusted wealth management with significant single amount or low security and poor liquidity:
55ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
□Applicable □ Not applicable
Whether there is the case where the principal cannot be recovered at maturity or other case which may cause impairment for
entrusted wealth management
□Applicable □ Not applicable
(2) Entrusted Loans
□Applicable □ Not applicable
No such cases in the Reporting Period.
4. Other Major Contracts
□Applicable □ Not applicable
No such cases in the Reporting Period.XVI Other Significant Events
□Applicable □ Not applicable
No such cases in the Reporting Period.XVII Significant Events of Subsidiaries
□Applicable □ Not applicable
56ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Part VII Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
Before Increase/decrease (+/-) After
Shares as
Shares as
dividend
dividend
Percentag New converted Percentag
Shares converted Other Subtotal Shares
e (%) issues from e (%)
from
capital
profit
reserves
1.
Restricted 0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00%
shares
1.1
Shares
0.000.00%0.000.000.000.000.000.000.00%
held by
the state
1.2
Shares
held by
0.000.00%0.000.000.000.000.000.000.00%
state-own
Legal-
person
1.3
Shares
held by
0.000.00%0.000.000.000.000.000.000.00%
other
domestic
investors
Among
which:
shares
held by 0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00%
domestic
legal
person
Shares
held by
domestic 0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00%
natural
person
1.4
Oversea
0.000.00%0.000.000.000.000.000.000.00%
sharehold
ings
Among
which:
shares
held by 0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00%
oversea
legal
person
Shares
held by 0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00%
oversea
57ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
natural
person
2.
10116601011660
Unrestrict 100.00% 0.00 0.00 0.00 0.00 0.00 100.00%
ed shares 000.00 000.00
2.1 RMB
89166008916600
ordinary 88.14% 0.00 0.00 0.00 0.00 0.00 88.14%
shares 00.00 00.00
2.2
Domestic
12000001200000
ally listed 11.86% 0.00 0.00 0.00 0.00 0.00 11.86%
foreign 00.00 00.00
shares
2.3
Oversea
listed 0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00%
foreign
shares
2.4 Other 0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00%
3. Total 1011660 1011660
100.00%0.000.000.000.000.00100.00%
shares 000.00 000.00
Reasons for share changes:
□Applicable □ Not applicable
Approval of share changes:
□Applicable □ Not applicable
Transfer of share ownership:
□Applicable □ Not applicable
Effects of share changes on the basic and diluted earnings per share equity per share attributable to the Company’s ordinary
shareholders and other financial indicators of the prior year and the prior accounting period respectively:
□Applicable □ Not applicable
Other information that the Company considers necessary or is required by the securities regulator to be disclosed:
□Applicable □ Not applicable
2. Changes in Restricted Shares
□Applicable □ Not applicable
II. Issuance and Listing of Securities
1. Securities (Exclusive of Preferred Shares) Issued in the Reporting Period
□Applicable □ Not applicable
2. Changes to Total Shares Shareholder Structure and Asset and Liability Structures
□Applicable □ Not applicable
3. Existing Staff-Held Shares
□Applicable □ Not applicable
58ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
III Shareholders and Actual Controller
1. Shareholders and Their Shareholdings at the Period-End
Unit: share
Number of
Number of preferred
ordinary Number of
Number of shareholders with
shareholders at preferred
ordinary resumed voting rights
43107 the month-end 42079 shareholders 0 0
shareholder at the month-end prior
prior to the with resumed
s to the disclosure of
disclosure of this voting rights
this Report
Report
Shareholding of ordinary shareholders holding more than 5% shares or the top 10 of ordinary shareholders (exclusive of shares
lent in refinancing)
Increase and Pledged marked
Number of
decrease of Number or frozen shares
Nature of Holding shareholding at Number of
Name of shares of
sharehold percentag the end of the unrestricted Status
shareholder during restricte Amo
er e (%) Reporting shares of
Reporting d shares unt
Period shares
Period
Shenzhen State-
Investment owned
55.78% 564353838 0 0 564353838 N/A 0
Holdings Co. legal
Ltd person
Domestic
Shenzhen State-
non-state-
owned Equity
owned 6.35% 64288426 0 0 64288426 N/A 0
Management
legal
Co. Ltd.person
Domestic
Yang Jianmin natural 1.10% 11136977 1917300 0 11136977 N/A 0
person
Domestic
Zhang Xiujuan natural 0.47% 4760400 659200 0 4760400 N/A 0
person
Domestic
Wang Yulan natural 0.44% 4427191 1023300 0 4427191 N/A 0
person
Hong Kong
Foreign
Securities
legal 0.41% 4146803 2754770 0 4146803 N/A 0
Clearing
person
Company Ltd.Domestic
Pan Jun natural 0.41% 4129376 -1059424 0 4129376 N/A 0
person
Domestic
He Qiao natural 0.38% 3888886 -116400 0 3888886 N/A 0
person
Domestic
Wang
natural 0.29% 2918100 0 2918100 N/A 0
Zhengying person
Domestic
Zhang Zi natural 0.26% 2584700 1214400 0 2584700 N/A 0
person
Strategic investor or general legal person becoming
None
a top-10 ordinary shareholder due to rights issue
Among the top 10 shareholders of the Company Shenzhen State-owned
Equity Management Co. Ltd. is a wholly-owned subsidiary of Shenzhen
Related or acting-in-concert parties among the
Investment Holdings Co. Ltd. The Company does not know whether there
shareholders above
exists associated relationship among the other shareholders or whether they
are persons acting in concert as prescribed in the Administrative Measures
59ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
for the Acquisition of Listed Companies.Explain if any of the shareholders above was
involved in entrusting/being entrusted with voting None
rights or waiving voting rights
Special account for share repurchases among the
None
top 10 shareholders
Top 10 unrestricted shareholders
Unrestricted shares Shares by type
Name of shareholder held at the period-
Type Shares
end
Shenzhen Investment Holdings Co. Ltd 564353838 RMB ordinary shares 564353838
Shenzhen State-owned Equity
64288426 RMB ordinary shares 64288426
Management Co. Ltd.Yang Jianmin 11136977 RMB ordinary shares 11136977
Zhang Xiujuan 4760400 RMB ordinary shares 4760400
Wang Yulan 4427191 RMB ordinary shares 4427191
Hong Kong Securities Clearing Company
4146803 RMB ordinary shares 4146803
Ltd.Pan Jun 4129376 RMB ordinary shares 4129376
RMB ordinary shares 3732000
He Qiao 3888886 Domestically listed foreign
156886
shares
Wang Zhengying 2918100 RMB ordinary shares 2918100
Zhang Zi 2584700 RMB ordinary shares 2584700
Related or acting-in-
concert parties among top Among the top 10 unrestricted public shareholders of the Company Shenzhen State-owned Equity
10 unrestricted public Management Co. Ltd. is a wholly-owned subsidiary of Shenzhen Investment Holdings Co. Ltd. The
shareholders as well as
Company does not know whether there exists associated relationship among the other shareholders
between top 10
unrestricted public or whether they are persons acting in concert as prescribed in the Administrative Measures for the
shareholders and top 10 Acquisition of Listed Companies.shareholders
Top 10 ordinary Among the top 10 shareholders of the Company the third fourth eighth ninth and 10th
shareholders involved in shareholders held 9804200 shares 4760400 shares 3732000 shares 2918100 shares and
securities margin trading 2496600 shares in their respective credit securities accounts.Top 10 shareholders involved in refinancing shares lending
□Applicable □ Not applicable
Changes in top 10 shareholders compared with the prior period
□ Applicable □ Not applicable
Unit: share
Changes in top 10 shareholders compared with the end of the prior period
Newly added Shares in the common account and credit
Shares lent in refinancing and not
or existing account plus shares lent in refinancing
yet returned at the period-end
from top 10 and not yet returned at the period-end
Full name of shareholder shareholders
in the As % of total share As % of total share
Reporting Total shares Total shares capital capital
Period
Hong Kong Securities
Newly added 0 0.00% 0 0.00%
Clearing Company Ltd.Wang Zhengying Newly added 0 0.00% 0 0.00%
Zhang Zi Newly added 0 0.00% 0 0.00%
Cao Benming Exiting 0 0.00% 0 0.00%
Lin Weirong Exiting 0 0.00% 0 0.00%
China International Capital
Exiting 0 0.00% 0 0.00%
Corporation Limited
60ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the
Company conducted any promissory repo during the Reporting Period.□Yes □ No
No such cases in the Reporting Period.
2. Controlling Shareholder
Nature of the controlling shareholder: Controlled by a local state-owned legal person
Type of the controlling shareholder: legal person
Legal
Name of controlling Date of Unified social
representative/p Principal activity
shareholder establishment credit code
erson in charge
Investment in equities on behalf of
the government and management
of those investments; development
Shenzhen Investment
He Jianfeng 13 October 2004 767566421 and operation of government-
Holdings Co. Ltd.allocated land; and investment in
and provision of services for
strategic emerging industries
301410000 shares in SZPRD A (000011) representing a stake of 50.57%;;
234070000 shares in STHC (000045) representing a stake of 46.21%;
8210000 shares in Shenzhen Universe A (000023) representing a stake of 5.91%;
962720000 shares in Ping An (601318) representing a stake of 5.27%;
3223110000 shares in Guosen Securities (002736) representing a stake of 33.53%;
609430000 of A shares and 103370000 of H shares in Guotai Junan (601211) representing a stake
of 8%;
195030000 shares in Telling Holding (000829) representing a stake of 19.03%;
1059082500 shares in Shenzhen International (00152) representing a stake of 44.25%;
Controlling 604820000 shares in BEAUTYSTAR (002243) representing a stake of 49.96%;
shareholder’s holdings 315830000 shares in Infinova (002528) representing a stake of 26.35%;
in other listed 601673300 shares in EA (002183) representing a stake of 23.17%;
companies at home or 64350000 shares in SWPD (301038) representing a stake of 37.50%;
abroad in the Reporting 6770000 shares in Shenzhen Energy (000027) representing a stake of 0.14%;
Period 9520000 shares in BOCOM (601328) representing a stake of 0.01%;
113980000 shares in Techand Ecology (300197) representing a stake of 4.04%;
77270000 shares in Vanke (02202) representing a stake of 0.66%;
696160000 shares in SEG (000058) representing a stake of 56.54%;
325721500 shares in SDGI (000070) representing a stake of 36.18%;
205341600 shares in TELLUS A (000025) representing a stake of 31.79%;
80739800 shares in SDGS (300917) representing a stake of 47.78%;
72000000 shares in MICROGATE (300319) representing a stake of 6.49%;
456121900 shares in CHINA MERCHANT’S SHEKOU HOLDINGS (001979) representing a stake
of 5.03%.Change of the controlling shareholder in the Reporting Period:
□Applicable □ Not applicable
No such cases in the Reporting Period.
3. Actual Controller and Its Acting-in-Concert Parties
Nature of the actual controller: Local institution for state-owned assets management
Type of the actual controller: legal person
Name of actual Legal representative/person Date of Unified social
Principal activity
controller in charge establishment credit code
61ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Perform the responsibilities
Shenzhen State-owned of investor on behalf of the
Assets Supervision and
Wang Yongjian 31 July 2004 K3172806-7 state and supervise and
Administration
Commission manage the authorized state-
owned assets legally.Other listed companies
at home or abroad In addition to the Company controlling shareholder - Shenzhen Investment Holding Co. Ltd. Other
controlled by the actual domestic and overseas listed companies whose equity held by the actual controllers did not rank among
controller in the the top ten shareholders of the Company.Reporting Period
Change of the actual controller during the Reporting Period:
□Applicable □ Not applicable
No such cases in the Reporting Period.Ownership and control relations between the actual controller and the Company:
Indicate by tick mark whether the actual controller controls the Company via trust or other ways of asset management.□Applicable □ Not applicable
4. Number of Accumulative Pledged Shares held by the Company’s Controlling Shareholder or the Largest
Shareholder as well as Its Acting-in-Concert Parties Accounts for 80% of all shares of the Company held by
Them
□Applicable □ Not applicable
5. Other 10% or Greater Corporate Shareholders
□Applicable □ Not applicable
62ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
6. Limitations on Shareholding Decrease by the Company’s Controlling Shareholder Actual Controller
Reorganizer and Other Commitment Makers
□Applicable □ Not applicable
IV Specific Implementation of Share Repurchase during the Reporting Period
Progress on any share repurchase:
□Applicable □ Not applicable
Progress on reducing the repurchased shares by means of centralized bidding:
□Applicable □ Not applicable
63ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Part VIII Preference Shares
□Applicable □ Not applicable
No preference shares in the Reporting Period.
64ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Part IX Bonds
□Applicable □ Not applicable
65ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Part X Financial Statements
I. Auditor’s Report
Type of the audit opinion Unmodified unqualified opinion
Date of signing this report 29 March 2024
Name of the audit institution Pan-China Certified Public Accountant (LLP)
Number of the audit report PCCPAAR [2024] No. 7-160
Name of the certified public accountants Wang Huansen Cai Xiaodong
Text of the Auditor’s Report
Auditor’s Report
PCCPAAR [2024] No. 7-160
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 2023 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 2023 and its
financial performance and its cash flows for the year then ended in accordance with
China Accounting Standards for Business Enterprises.II. Basis for Audit 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 our
66ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
report. We are independent of the Company in accordance with the China Code of
Ethics for Certified Public Accountants and we have fulfilled other ethical
responsibilities. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
67ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
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 business. In 2023 the operating revenue amounted to 530887720.68
yuan of which 118580624.34 yuan was from the real estate sales accounting for
22.34% and 324243778.50 yuan was from engineering construction accounting for
61.08%.
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 sales contracts and lease contracts and assessed whether the
revenue recognition method was appropriate;
(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 sales
68ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
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 2023 the book balance of inventories amounted to
4306986320.68 yuan with provision for inventory write-down of 391770398.72
yuan and the carrying amount amounted to 3915215921.96 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
the Management we have identified net realizable value of inventories as a key audit
matter.
69ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
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 historical data 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
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
70ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
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.
71ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
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.
72ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
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-China Certified Public Accountants LLP Chinese Certified Public Accountant:王焕森
(Engagement Partner)
Hangzhou · China Chinese Certified Public Accountant: 蔡晓东
Date of Report: March 29 2024
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.
73ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.Consolidated balance sheet as at December 31 2023
(Expressed in Renminbi Yuan)
Note
Assets Closing balance December 31 2022
No.Current assets:
Cash and bank balances 1 871019268.83 197663949.74
Settlement funds
Loans to other banks
Held-for-trading financial assets 2 879340201.92 408154361.42
Derivative financial assets
Notes receivable 3 1536150.00
Accounts receivable 4 75100970.83 63580422.16
Receivables financing
Advances paid 5 409192.07 1163612.24
Premiums receivable
Reinsurance accounts receivable
Reinsurance reserve receivable
Other receivables 6 15893736.28 42105050.33
Financial assets under reverse repo
Inventories 7 3915215921.96 4257109614.31
Contract assets 8 27352596.92
Assets held for sale
Non-current assets due within one year
Other current assets 9 87175263.06 36778641.42
Total current assets 5871507151.87 5008091801.62
Non-current assets:
Loans and advances
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 10 93927.64
Other equity instrument investments 11 14324411.35 13839235.57
Other non-current financial assets
Investment property 12 541542136.17 566873915.07
Fixed assets 13 19928049.77 21425475.05
Construction in progress
Productive biological assets
Oil & gas assets
Right-of-use assets 14 99641.48 232496.72
Intangible assets 15
Development expenditures
Goodwill
Long-term prepayments 16 1598305.56 2176221.53
Deferred tax assets 17 36312811.26 77036728.98
Other non-current assets
Total non-current assets 613805355.59 681678000.56
Total assets 6485312507.46 5689769802.18
Legal representative: 唐小平 Officer in charge of accounting: 汪健飞 Head of accounting department: 周宏普
74ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.Consolidated balance sheet as at December 31 2023 (continued)
(Expressed in Renminbi Yuan)
Note
Liabilities & Equity Closing balance December 31 2022
No.Current liabilities:
Short-term borrowings 19 3550000.00 51138077.62
Central bank loans
Loans from other banks
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 20 443259768.78 434601559.67
Advances received 21 420724.30 5465343.96
Contract liabilities 22 1291448591.28 43533467.29
Financial liabilities under repo
Absorbing deposit and interbank deposit
Deposits for agency security transaction
Deposits for agency security underwriting
Employee benefits payable 23 22247017.36 35724203.78
Taxes and rates payable 24 40908986.48 190951185.99
Other payables 25 554469229.59 574331340.84
Handling fees and commissions payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one year 26 34056347.93 6188794.43
Other current liabilities 27 136364529.76 3882817.68
Total current liabilities 2526725195.48 1345816791.26
Non-current liabilities:
Insurance policy reserve
Long-term borrowings 28 179431851.02 54261000.00
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 29 53885.23
Long-term payables
Long-term employee benefits payable
Provisions
Deferred income
Deferred tax liabilities 17 3012566.54 3096348.02
Other non-current liabilities
Total non-current liabilities 182444417.56 57411233.25
Total liabilities 2709169613.04 1403228024.51
Equity:
Share capital 30 1011660000.00 1011660000.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 31 978244910.11 978244910.11
Less: Treasury shares
Other comprehensive income 32 25319459.44 25926720.85
Special reserve
Surplus reserve 33 275253729.26 275253729.26
General risk reserve
Undistributed profit 34 1400604385.39 1713155187.48
Total equity attributable to the parent company 3691082484.20 4004240547.70
Non-controlling interest 85060410.22 282301229.97
Total equity 3776142894.42 4286541777.67
Total liabilities & equity 6485312507.46 5689769802.18
Legal representative: 唐小平 Officer in charge of accounting: 汪健飞 Head of accounting department: 周宏普
75ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.Parent company balance sheet as at December 31 2023
(Expressed in Renminbi Yuan)
Note
Assets Closing balance December 31 2022
No.Current assets:
Cash and bank balances 116977480.94 92377124.60
Held-for-trading financial assets 879340201.92 408154361.42
Derivative financial assets
Notes receivable
Accounts receivable 1 9750885.01 11706678.21
Receivables financing
Advances paid 200000.00 200000.00
Other receivables 2 1723164380.70 1711880332.45
Inventories 315818.69 4854703.53
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 810142.59 1138065.43
Total current assets 2730558909.85 2230311265.64
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 3 1323365748.39 1582275489.49
Other equity instrument investments 14324411.35 13839235.57
Other non-current financial assets
Investment property 433172839.90 455917024.15
Fixed assets 12683997.76 14046375.35
Construction in progress
Productive biological assets
Oil & gas assets
Right-of-use assets
Intangible assets
Development expenditures
Goodwill
Long-term prepayments 1170295.66 1381401.99
Deferred tax assets 792735.07 29502067.58
Other non-current assets
Total non-current assets 1785510028.13 2096961594.13
Total assets 4516068937.98 4327272859.77
Legal representative: 唐小平 Officer in charge of accounting: 汪健飞 Head of accounting department: 周宏普
76ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.Parent company balance sheet as at December 31 2023 (continued)
(Expressed in Renminbi Yuan)
Note
Liabilities & Equity Closing balance December 31 2022
No.Current liabilities:
Short-term borrowings
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 17535100.83 17666752.61
Advances received
Contract liabilities 88985.71 184985.71
Employee benefits payable 13431614.17 21167813.42
Taxes and rates payable 28060321.09 178147095.75
Other payables 759312118.85 184614308.51
Liabilities held for sale
Non-current liabilities due within one year 375269.30
Other current liabilities 4449.29 9249.29
Total current liabilities 818807859.24 401790205.29
Non-current liabilities:
Long-term borrowings 62398851.02
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee benefits payable
Provisions
Deferred income
Deferred tax liabilities 3012566.54 3096348.02
Other non-current liabilities
Total non-current liabilities 65411417.56 3096348.02
Total liabilities 884219276.80 404886553.31
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 1743308.51 1379426.68
Special reserve
Surplus reserve 252124115.85 252124115.85
Undistributed profit 1401610305.69 1692510832.80
Total equity 3631849661.18 3922386306.46
Total liabilities & equity 4516068937.98 4327272859.77
Legal representative: 唐小平 Officer in charge of accounting: 汪健飞 Head of accounting department: 周宏普
77ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.Consolidated income statement for the year ended December 31 2023
(Expressed in Renminbi Yuan)
Note
Items Current period cumulative Preceding period comparative
No.I. Total operating revenue 530887720.68 634384561.42
Including: Operating revenue 1 530887720.68 634384561.42
Interest income
Premiums earned
Revenue from handling fees and commissions
II. Total operating cost 588334716.73 587304689.71
Including: Operating cost 1 444797642.10 437052001.01
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 70999932.36 81783491.54
Selling expenses 3 21803202.14 19217595.11
Administrative expenses 4 55965931.72 55758749.08
R&D expenses
Financial expenses 5 -5231991.59 -6507147.03
Including: Interest expenses 1258720.92
Interest income 4804313.09 5315817.53
Add: Other income 6 567272.39 559803.19
Investment income (or less: losses) 7 10546418.38 164986548.17
Including: Investment income from associates and joint ventures -93927.64 -178240.64
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 7824348.71 8970031.50
Credit impairment loss 9 579514.02 -6516237.34
Assets impairment loss 10 -392577463.42 -532397.57
Gains on asset disposal (or less: losses) 11 -1000.00
III. Operating profit (or less: losses) -430507905.97 214547619.66
Add: Non-operating revenue 12 386425.53 1534651.38
Less: Non-operating expenditures 13 530564.09 478942.74
IV. Profit before tax (or less: total loss) -430652044.53 215603328.30
Less: Income tax expenses 14 17012113.07 66026457.35
V. Net profit (or less: net loss) -447664157.60 149576870.95
(I) Categorized by the continuity of operations
1. Net profit from continuing operations (or less: net loss) -447664157.60 139931713.54
2. Net profit from discontinued operations (or less: net loss) 9645157.41
(II) Categorized by the portion of equity ownership
1. Net profit attributable to owners of parent company (or less: net loss) -250839542.09 153718805.57
2. Net profit attributable to non-controlling shareholders (or less: net loss) -196824615.51 -4141934.62
VI. Other comprehensive income after tax -1023465.65 -1338182.69
Items attributable to the owners of the parent company -607261.41 1287530.16
(I) Not to be reclassified subsequently to profit or loss 780086.07 -1314647.75
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 780086.07 -1314647.75
4. Changes in fair value of own credit risk
5. Others
(II) To be reclassified subsequently to profit or loss -1387347.48 2602177.91
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 -1387347.48 2602177.91
7. Others
Items attributable to non-controlling shareholders -416204.24 -2625712.85
VII. Total comprehensive income -448687623.25 148238688.26
Items attributable to the owners of the parent company -251446803.50 155006335.73
Items attributable to non-controlling shareholders -197240819.75 -6767647.47
VIII. Earnings per share (EPS):
(I) Basic EPS (yuan per share) -0.2479 0.1519
(II) Diluted EPS (yuan per share) -0.2479 0.1519
Legal representative: 唐小平 Officer in charge of accounting: 汪健飞 Head of accounting department: 周宏普
78ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.Parent company income statement for the year ended December 31 2023
(Expressed in Renminbi Yuan)
Note
Items Current period cumulative Preceding period comparative
No.I. Operating revenue 1 80149443.14 207149569.13
Less: Operating cost 1 33500490.21 66761336.83
Taxes and surcharges 10031959.33 34857919.27
Selling expenses 1232057.79 1693651.82
Administrative expenses 32052637.87 31384870.71
R&D expenses
Financial expenses -31995210.76 -57765779.16
Including: Interest expenses 1258720.92
Interest income 29254205.70 42340594.39
Add: Other income 417143.48 290331.32
Investment income (or less: losses) 2 9434264.74 280973270.14
Including: Investment income from associates and joint ventures -93927.64 -178240.64
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) 7824348.71 8970031.50
Credit impairment loss -19236221.85 -402823.92
Assets impairment loss -258815813.46
Gains on asset disposal (or less: losses)
II. Operating profit (or less: losses) -225048769.68 420048378.70
Add: Non-operating revenue 355127.30 350103.89
Less: Non-operating expenditures 52058.53 308559.95
III. Profit before tax (or less: total loss) -224745700.91 420089922.64
Less: Income tax expenses 4443566.20 79001179.37
IV. Net profit (or less: net loss) -229189267.11 341088743.27
(I) Net profit from continuing operations (or less: net loss) -229189267.11 341088743.27
(II) Net profit from discontinued operations (or less: net loss)
V. Other comprehensive income after tax 363881.83 5472.49
(I) Not to be reclassified subsequently to profit or loss 363881.83 5472.49
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 363881.83 5472.49
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 -228825385.28 341094215.76
VII. Earnings per share (EPS):
(I) Basic EPS (yuan per share)
(II) Diluted EPS (yuan per share)
Legal representative: 唐小平 Officer in charge of accounting: 汪健飞 Head of accounting department: 周宏普
79ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.Consolidated cash flow statement for the year ended December 31 2023
(Expressed in Renminbi Yuan)
Note Current period Preceding period
Items
No. cumulative comparative
I. Cash flows from operating activities:
Cash receipts from sale of goods or rendering of services 1893492865.50 511011815.61
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 1186861.59 132838815.39
Other cash receipts related to operating activities 2 (1) 56304822.67 24599301.34
Subtotal of cash inflows from operating activities 1950984549.76 668449932.34
Cash payments for goods purchased and services received 491021430.05 641103390.35
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 86966612.34 89495463.28
Cash payments for taxes and rates 250127861.30 540305543.96
Other cash payments related to operating activities 2 (2) 77831397.88 73321533.51
Subtotal of cash outflows from operating activities 905947301.57 1344225931.10
Net cash flows from operating activities 1045037248.19 -675775998.76
II. Cash flows from investing activities:
Cash receipts from withdrawal of investments
Cash receipts from investment income 1 (1) 699091.79 10527896.61
Net cash receipts from the disposal of fixed assets intangible assets and other long-
1(2)29475.622907.50
term assets
Net cash receipts from the disposal of subsidiaries & other business units 1 (3) 1644822.69 157395480.90
Other cash receipts related to investing activities 2 (3) 136800000.00 114840380.99
Subtotal of cash inflows from investing activities 139173390.10 282766666.00
Cash payments for the acquisition of fixed assets intangible assets and other long-
1(4)1475412.00713537.29
term assets
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) 600000000.00
Subtotal of cash outflows from investing activities 601475412.00 713537.29
Net cash flows from investing activities -462302021.90 282053128.71
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 169486610.82 111428077.62
Other cash receipts related to financing activities
Subtotal of cash inflows from financing activities 169486610.82 111428077.62
Cash payments for the repayment of borrowings 16200400.38 50440116.24
Cash payments for distribution of dividends or profits and for interest expenses 67383381.18 89685993.21
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 83583781.56 140126109.45
Net cash flows from financing activities 85902829.26 -28698031.83
IV. Effect of foreign exchange rate changes on cash and cash equivalents 143288.32 492336.21
V. Net increase in cash and cash equivalents 668781343.87 -421928565.67
Add: Opening balance of cash and cash equivalents 190365069.48 612293635.15
VI. Closing balance of cash and cash equivalents 859146413.35 190365069.48
Legal representative: 唐小平 Officer in charge of accounting: 汪健飞 Head of accounting department: 周宏普
80ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.Parent company cash flow statement for the year ended December 31 2023
(Expressed in Renminbi Yuan)
Current period Preceding period
Items
cumulative comparative
I. Cash flows from operating activities:
Cash receipts from sale of goods and rendering of services 86415239.73 49012283.37
Receipts of tax refund 1143272.60 76682094.30
Other cash receipts related to operating activities 689725513.49 45702753.43
Subtotal of cash inflows from operating activities 777284025.82 171397131.10
Cash payments for goods purchased and services received 3283183.54 14097081.25
Cash paid to and on behalf of employees 48032030.43 41433458.97
Cash payments for taxes and rates 150255838.40 506294532.81
Other cash payments related to operating activities 79379092.98 48529139.31
Subtotal of cash outflows from operating activities 280950145.35 610354212.34
Net cash flows from operating activities 496333880.47 -438957081.24
II. Cash flows from investing activities:
Cash receipts from withdrawal of investments
Cash receipts from investment income 12516011.35 10042199.78
Net cash receipts from the disposal of fixed assets intangible
2907.50
assets and other long-term assets
Net cash receipts from the disposal of subsidiaries & other
196676700.00
business units
Other cash receipts related to investing activities 136800000.00 114840380.99
Subtotal of cash inflows from investing activities 149316011.35 321562188.27
Cash payments for the acquisition of fixed assets intangible assets
578736.10458195.93
and other long-term assets
Cash payments for investments
Net cash payments for the acquisition of subsidiaries & other
business units
Other cash payments related to investing activities 619280000.00
Subtotal of cash outflows from investing activities 619858736.10 458195.93
Net cash flows from investing activities -470542724.75 321103992.34
III. Cash flows from financing activities:
Cash receipts from absorbing investments
Cash receipts from borrowings 62586610.82
Other cash receipts related to financing activities
Subtotal of cash inflows from financing activities 62586610.82
Cash payments for the repayment of borrowings 62586.60
Cash payments for distribution of dividends or profits and for
62138698.6089026080.00
interest expenses
Other cash payments related to financing activities
Subtotal of cash outflows from financing activities 62201285.20 89026080.00
Net cash flows from financing activities 385325.62 -89026080.00
IV. Effect of foreign exchange rate changes on cash and cash
equivalents
V. Net increase in cash and cash equivalents 26176481.34 -206879168.90
Add: Opening balance of cash and cash equivalents 90800999.60 297680168.50
VI. Closing balance of cash and cash equivalents 116977480.94 90800999.60
Legal representative: 唐小平 Officer in charge of accounting: 汪健飞 Head of accounting department: 周宏普
81ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.Consolidated statement of changes in equity for the year ended December 31 2023
(Expressed in Renminbi Yuan)
Current period cumulative
Equity attributable to parent company
Items Other equity instruments Less: Other General Non-controlling
Special Surplus Undistributed Total equity
Share capital Preferred Perpetual Capital reserve Treasury comprehensive risk interest
Others reserve reserve profit
shares bonds shares income reserve
I. Balance at the end of prior year 1011660000.00 978244910.11 25926720.85 275253729.26 1713155187.48 282301229.97 4286541777.67
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 25926720.85 275253729.26 1713155187.48 282301229.97 4286541777.67
III. Current period increase (or less: decrease) -607261.41 -312550802.09 -197240819.75 -510398883.25
(I) Total comprehensive income -607261.41 -250839542.09 -197240819.75 -448687623.25
(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 -61711260.00 -61711260.00
1. Appropriation of surplus reserve
2. Appropriation of general risk reserve
3. Appropriation of profit to shareholders -61711260.00 -61711260.00
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 25319459.44 275253729.26 1400604385.39 85060410.22 3776142894.42
Legal representative: 唐小平 Officer in charge of accounting: 汪健飞 Head of accounting department: 周宏普
82ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.Consolidated statement of changes in equity for the year ended December 31 2023 (continued)
(Expressed in Renminbi Yuan)
Preceding period comparative
Equity attributable to parent company
Items Other equity instruments Less: Other General Non-controlling
Special Surplus Undistributed Total equity
Share capital Preferred Perpetual Capital reserve Treasury comprehensive risk interest
Others reserve reserve profit
shares bonds shares income reserve
I. Balance at the end of prior year 1011660000.00 978244910.11 36088963.95 241144854.93 1671121562.98 289068877.44 4227329169.41
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 36088963.95 241144854.93 1671121562.98 289068877.44 4227329169.41
III. Current period increase (or less: decrease) -10162243.10 34108874.33 42033624.50 -6767647.47 59212608.26
(I) Total comprehensive income 1287530.16 153718805.57 -6767647.47 148238688.26
(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 34108874.33 -123134954.33 -89026080.00
1. Appropriation of surplus reserve 34108874.33 -34108874.33
2. Appropriation of general risk reserve
3. Appropriation of profit to shareholders -89026080.00 -89026080.00
4. Others
(IV) Internal carry-over within equity -11449773.26 11449773.26
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 -11449773.26 11449773.26
(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 25926720.85 275253729.26 1713155187.48 282301229.97 4286541777.67
Legal representative: 唐小平 Officer in charge of accounting: 汪健飞 Head of accounting department: 周宏普
83ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.Parent company statement of changes in equity for the year ended December 31 2023
(Expressed in Renminbi Yuan)
Current period cumulative
Other equity instruments
Items Less: Other Special
Share capital Preferred Perpetual Capital reserve Treasury comprehensive Surplus reserve Undistributed profit Total equity
Others reserve
shares bonds shares income
I. Balance at the end of prior year 1011660000.00 964711931.13 1379426.68 252124115.85 1692510832.80 3922386306.46
Add: Cumulative changes of accounting policies
Error correction of prior period
Others
II. Balance at the beginning of current year 1011660000.00 964711931.13 1379426.68 252124115.85 1692510832.80 3922386306.46
III. Current period increase (or less: decrease) 363881.83 -290900527.11 -290536645.28
(I) Total comprehensive income 363881.83 -229189267.11 -228825385.28
(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 -61711260.00 -61711260.00
1. Appropriation of surplus reserve
2. Appropriation of profit to shareholders -61711260.00 -61711260.00
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 1743308.51 252124115.85 1401610305.69 3631849661.18
Legal representative: 唐小平 Officer in charge of accounting: 汪健飞 Head of accounting department: 周宏普
84ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.Parent company statement of changes in equity for the year ended December 31 2023 (continued)
(Expressed in Renminbi Yuan)
Preceding period comparative
Other equity instruments
Items Less: Other Special Undistributed
Share capital Preferred Perpetual Capital reserve Treasury comprehensive Surplus reserve Total equity
Others reserve profit
shares bonds shares income
I. Balance at the end of prior year 1011660000.00 964711931.13 1373954.19 218015241.52 1474557043.86 3670318170.70
Add: Cumulative changes of accounting policies
Error correction of prior period
Others
II. Balance at the beginning of current year 1011660000.00 964711931.13 1373954.19 218015241.52 1474557043.86 3670318170.70
III. Current period increase (or less: decrease) 5472.49 34108874.33 217953788.94 252068135.76
(I) Total comprehensive income 5472.49 341088743.27 341094215.76
(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 34108874.33 -123134954.33 -89026080.00
1. Appropriation of surplus reserve 34108874.33 -34108874.33
2. Appropriation of profit to shareholders -89026080.00 -89026080.00
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 1379426.68 252124115.85 1692510832.80 3922386306.46
Legal representative: 唐小平 Officer in charge of accounting: 汪健飞 Head of accounting department: 周宏普
85ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Shenzhen Special Economic Zone
Real Estate & Properties (Group) Co. Ltd.Notes to Financial Statements
For the year ended December 31 2023
Monetary unit: RMB Yuan
I. Company profile
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. (the ―Company‖)
was established under the approval of General Office of the Shenzhen Municipal People’s
Government and was reorganized into a limited liability company by shares on the basis of the
former Shenzhen Special Economic Zone Real Estate and Properties Corporation. The Company
was registered at Shenzhen Administration for Industry and Commerce in July 1993 and
headquartered in Shenzhen City Guangdong Province. The Company currently holds a business
license with unified social credit code of 91440300192179585N with registered capital of
1011660000.00 yuan total share of 1011660000 shares (each with par value of one yuan) of
which 891660000 shares and 120000000 shares are unrestricted outstanding A shares and B
shares respectively. The Company’s shares were listed on the Shenzhen Stock Exchange
respectively on September 15 1993 and January 10 1994.Shenzhen Investment Holdings Co. Ltd. is a wholly state-owned limited liability company
established on October 13 2004 through the merger of its original major shareholder Shenzhen
Construction Investment Holdings Co. Ltd. and two other municipal asset management
companies according to the ―Decision on the Establishment of Shenzhen Investment Holdings Co.Ltd.‖ (Shen Guo Zi Wei [2004] No. 223) issued by State-owned Assets Supervision and
Management Commission of Shenzhen Municipal People’s Government. The Company’s equity
transfer thereof was approved by the document numbered Guo Zi Chan Quan [2005] 689 issued
by State-owned Assets Supervision and Administration Commission of the State Council and the
corresponding obligation of tender offer was exempted under the approval of the document
numbered Zhen Jian Gong Si Zi [2005] 116 issued by China Securities Regulatory Commission
and it was registered at China Securities Depository and Clearing Co. Ltd. Shenzhen Branch on
February 15 2006. As of the balance sheet date Shenzhen Investment Holdings Co. Ltd. held
564353838 shares of the Company (accounting for 55.78% of the total share capital of the
Company) all of which were unrestricted shares.The Company belongs to the real estate industry and is mainly engaged in real estate development
and commercial housing sales property leasing and management commodity retail and trade
hotel business equipment installation and maintenance construction interior decoration etc.
86ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
The financial statements were approved and authorized for issue by the eighth meeting of the
eighth session of the Board of Directors dated March 29 2024.II. Preparation basis of the financial statements
(I) Preparation basis
The financial statements have been prepared on the basis of going concern.(II) Assessment of the ability to continue as a going concern
The Company has no events or conditions that may cast significant doubts upon the Company’s
ability to continue as a going concern within the 12 months after the balance sheet date.III. Significant accounting policies and estimates
Important note: The Company has set up accounting policies and estimates on transactions or
events such as impairment of financial instruments inventories depreciation of fixed assets
construction in progress intangible assets revenue recognition etc. based on the Company’s
actual production and operation features.(I) Statement of compliance
The financial statements have been prepared in accordance with the requirements of China
Accounting Standards for Business Enterprises (CASBEs) and present truly and completely the
financial position financial performance and cash flows of the Company.(II) Accounting period
The accounting year of the Company runs from January 1 to December 31 under the Gregorian
calendar.(III) Operating cycle
The Company has a relatively short operating cycle for its business an asset or a liability is
classified as current if it is expected to be realized or due within 12 months. The operating cycle
for real estate industry starts from the development of property and ends at sales which normally
extends over 12 months and is subject to specific projects therefore an asset or a liability is
classified as current if it is expected to be realized or due within such operating cycle.(IV) Functional currency
The functional currency of the Company and its subsidiaries in Hong Kong SAR is Renminbi
(RMB) Yuan while the functional currency of subsidiary Great Wall Estate Company Inc.engaged in overseas operations is the currency of the primary economic environment in which
they operate. The currency used by the Company in the preparation of the financial statements is
RMB yuan.(V) Determination method and basis for selection of materiality
The Company prepares and discloses financial statements in compliance with the principle of
87ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
materiality. The items disclosed in notes to the financial statements involving materiality
judgements determination method and basis for selection of materiality are as follows:
Disclosed items involving Determination method and basis for
Note No.materiality judgements selection of materiality
Accounts receivable with single amount
Significant accounts
in excess of 0.1% of total assets are
receivable with provision for
V (I) 4 (2) identified as significant accounts
bad debts made on an
receivable with provision made on an
individual basis
individual basis.Provisions for bad debts of accounts
Significant provisions for receivable reversed with single amount in
bad debts of accounts excess of 0.1% of total assets are
V (I) 4 (3)
receivable collected or identified as significant provisions for
reversed bad debts of accounts receivable collected
or reversed.Other receivables with single amount in
Significant other receivables excess of 0.1% of total assets are
with provision for bad debts V (I) 6 (3) identified as significant other receivables
made on an individual basis with provision made on an individual
basis.Accounts payable with age over one year
Significant accounts payable with single amount in excess of 0.1% of
V (I) 20
with age over one year total assets are identified as significant
accounts payable with age over one year.Other payables with age over one year
Significant other payables with single amount in excess of 0.1% of
V (I) 25 (3)
with age over one year total assets are identified as significant
other payables with age over one year.Cash flows from investing activities with
Significant cash flows from single amount in excess of 0.1% of total
V (Ⅲ) 1
investing activities assets are identified as significant cash
flows from investing activities.Subsidiaries with total assets/total
revenue/profit before tax in excess of
Significant subsidiaries not Ⅵ (I) 2 and Ⅵ 0.1% of the group’s total assets/total
wholly-owned subsidiaries (Ⅲ) 1 revenue/profit before tax are identified as
significant subsidiaries/significant not
wholly-owned subsidiaries.Contingencies with single amount in
Significant contingencies Ⅺ (Ⅱ) excess of 0.1% of total assets are
identified as significant contingencies.Events subsequent to the balance sheet
Significant events date with single amount in excess of 0.1%
subsequent to the balance Ⅻ (I) of total assets are identified as significant
sheet date events subsequent to the balance sheet
date.(VI) Accounting treatments of business combination under and not under common control
1. Accounting treatment of business combination under common control
Assets and liabilities arising from business combination are measured at carrying amount of the
combined party included in the consolidated financial statements of the ultimate controlling party
at the combination date. Difference between carrying amount of the equity of the combined party
included in the consolidated financial statements of the ultimate controlling party and that of the
88ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
combination consideration or total par value of shares issued is adjusted to capital reserve if the
balance of capital reserve is insufficient to offset any excess is adjusted to retained earnings.
2. Accounting treatment of business combination not under common control
When combination cost is in excess of the fair value of identifiable net assets obtained from the
acquiree at the acquisition date the excess is recognized as goodwill; otherwise the fair value of
identifiable assets liabilities and contingent liabilities and the measurement of the combination
cost are reviewed then the difference is recognized in profit or loss.(VII) Judgement criteria for control and compilation method of consolidated financial statements
1. Judgement of control
An investor controls an investee if and only if the investor has all the following: (1) power over
the investee; (2) exposure or rights to variable returns from its involvement with the investee; and
(3) the ability to use its power over the investee to affect the amount of the investor’s returns.
2. Compilation method of consolidated financial statements
The parent company brings all its controlled subsidiaries into the consolidation scope. The
consolidated financial statements are compiled by the parent company according to ―CASBE 33 –
Consolidated Financial Statements‖ based on relevant information and the financial statements of
the parent company and its subsidiaries.(VIII) Classification of joint arrangements and accounting treatment of joint operations
1. Joint arrangements include joint operations and joint ventures.
2. When the Company is a joint operator of a joint operation it recognizes the following items in
relation to its interest in a joint operation:
(1) its assets including its share of any assets held jointly;
(2) its liabilities including its share of any liabilities incurred jointly;
(3) its revenue from the sale of its share of the output arising from the joint operation;
(4) its share of the revenue from the sale of the assets by the joint operation; and
(5) its expenses including its share of any expenses incurred jointly.
(IX) Recognition criteria of cash and cash equivalents
Cash as presented in cash flow statement refers to cash on hand and deposit on demand for
payment. Cash equivalents refer to short-term highly liquid investments that can be readily
converted to cash and that are subject to an insignificant risk of changes in value.(Ⅹ) Foreign currency translation
1. Translation of transactions denominated in foreign currency
Transactions denominated in foreign currency are translated into RMB yuan at the spot exchange
rate at the transaction date at initial recognition. At the balance sheet date monetary items
89ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
denominated in foreign currency are translated at the spot exchange rate at the balance sheet date
with difference except for those arising from the principal and interest of exclusive borrowings
eligible for capitalization included in profit or loss; non-cash items carried at historical costs are
translated at the spot exchange rate at the transaction date with the RMB amounts unchanged;
non-cash items carried at fair value in foreign currency are translated at the spot exchange rate at
the date when the fair value was determined with difference included in profit or loss or other
comprehensive income.
2. Translation of financial statements measured in foreign currency
The assets and liabilities in the balance sheet are translated into RMB at the spot exchange rate at
the balance sheet date; the equity items other than undistributed profit are translated at the spot
exchange rate at the transaction date; the revenues and expenses in the income statement are
translated into RMB at the approximate exchange rate similar to the spot exchange rate at the
transaction date. The difference arising from the aforementioned foreign currency translation is
included in other comprehensive income.(XI) Financial instruments
1. Classification of financial assets and financial liabilities
Financial assets are classified into the following three categories when initially recognized: (1)
financial assets at amortized cost; (2) financial assets at fair value through other comprehensive
income; (3) financial assets at fair value through profit or loss.Financial liabilities are classified into the following four categories when initially recognized: (1)
financial liabilities at fair value through profit or loss; (2) financial liabilities that arise when a
transfer of a financial asset does not qualify for derecognition or when the continuing involvement
approach applies; (3) financial guarantee contracts not fall within the above categories (1) and (2)
and commitments to provide a loan at a below-market interest rate which do not fall within the
above category (1); (4) financial liabilities at amortized cost.
2. Recognition criteria measurement method and derecognition of financial assets and financial
liabilities
(1) Recognition criteria and measurement method of financial assets and financial liabilities
When the Company becomes a party to a financial instrument it is recognized as a financial asset
or financial liability. The financial assets and financial liabilities initially recognized by the
Company are measured at fair value; for the financial assets and liabilities at fair value through
profit or loss the transaction expenses thereof are directly included in profit or loss; for other
categories of financial assets and financial liabilities the transaction expenses thereof are included
into the initially recognized amount. However at initial recognition for accounts receivable that
do not contain a significant financing component or in circumstances where the Company does not
consider the financing components in contracts within one year they are measured at the
transaction price in accordance with ―CASBE 14 – Revenues‖.
90ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
(2) Subsequent measurement of financial assets
1) Financial assets measured at amortized cost
The Company measures its financial assets at the amortized costs using effective interest method.Gains or losses on financial assets that are measured at amortized cost and are not part of hedging
relationships shall be included into profit or loss when the financial assets are derecognized
reclassified amortized using effective interest method or recognized with impairment loss.
2) Debt instrument investments at fair value through other comprehensive income
The Company measures its debt instrument investments at fair value. Interests impairment gains
or losses and gains and losses on foreign exchange that calculated using effective interest method
shall be included into profit or loss while other gains or losses are included into other
comprehensive income. Accumulated gains or losses that initially recognized as other
comprehensive income should be transferred out into profit or loss when the financial assets are
derecognized.
3) Equity instrument investments at fair value through other comprehensive income
The Company measures its equity instrument investments at fair value. Dividends obtained (other
than those as part of investment cost recovery) shall be included into profit or loss while other
gains or losses are included into other comprehensive income. Accumulated gains or losses that
initially recognized as other comprehensive income should be transferred out into retained
earnings when the financial assets are derecognized.
4) Financial assets at fair value through profit or loss
The Company measures its financial assets at fair value. Gains or losses arising from changes in
fair value (including interests and dividends) shall be included into profit or loss except for
financial assets that are part of hedging relationships.
(3) Subsequent measurement of financial liabilities
1) Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include held-for-trading financial liabilities
(including derivatives that are liabilities) and financial liabilities designated as at fair value
through profit or loss. The Company measures such kind of liabilities at fair value. The amount of
changes in the fair value of the financial liabilities that are attributable to changes in the
Company’s own credit risk shall be included into other comprehensive income unless such
treatment would create or enlarge accounting mismatches in profit or loss. Other gains or losses on
those financial liabilities (including interests changes in fair value that are attributable to reasons
other than changes in the Company’s own credit risk) shall be included into profit or loss except
for financial liabilities that are part of hedging relationships. Accumulated gains or losses that
originally recognized as other comprehensive income should be transferred out into retained
earnings when the financial liabilities are derecognized.
91ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
2) Financial liabilities that arise when a transfer of a financial asset does not qualify for
derecognition or when the continuing involvement approach applies
The Company measures its financial liabilities in accordance with ―CASBE 23 – Transfer of
Financial Assets‖.
3) Financial guarantee contracts not fall within the above categories 1) and 2) and commitments
to provide a loan at a below-market interest rate which do not fall within the above category 1)
The Company measures its financial liabilities at the higher of: a. the amount of loss allowances in
accordance with impairment requirements of financial instruments; b. the amount initially
recognized less the amount of accumulated amortization recognized in accordance with ―CASBE
14 – Revenues‖.
4) Financial liabilities at amortized cost
The Company measures its financial liabilities at amortized cost using effective interest method.Gains or losses on financial liabilities that are measured at amortized cost and are not part of
hedging relationships shall be included into profit or loss when the financial liabilities are
derecognized and amortized using effective interest method.
(4) Derecognition of financial assets and financial liabilities
1) Financial assets are derecognized when:
a. the contractual rights to the cash flows from the financial assets expire; or
b. the financial assets have been transferred and the transfer qualifies for derecognition in
accordance with ―CASBE 23 – Transfer of Financial Assets‖.
2) Only when the underlying present obligations of a financial liability are relieved totally or
partly may the financial liability be derecognized accordingly.
3. Recognition criteria and measurement method of financial assets transfer
Where the Company has transferred substantially all of the risks and rewards related to the
ownership of the financial asset it derecognizes the financial asset and any right or liability
arising from such transfer is recognized independently as an asset or a liability. If it retained
substantially all of the risks and rewards related to the ownership of the financial asset it
continues recognizing the financial asset. Where the Company does not transfer or retain
substantially all of the risks and rewards related to the ownership of a financial asset it is dealt
with according to the circumstances as follows respectively: (1) if the Company does not retain its
control over the financial asset it derecognizes the financial asset and any right or liability arising
from such transfer is recognized independently as an asset or a liability; (2) if the Company retains
its control over the financial asset according to the extent of its continuing involvement in the
transferred financial asset it recognizes the related financial asset and recognizes the relevant
liability accordingly.
92ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
If the transfer of an entire financial asset satisfies the conditions for derecognition the difference
between the amounts of the following two items is included in profit or loss: (1) the carrying
amount of the transferred financial asset as of the date of derecognition; (2) the sum of
consideration received from the transfer of the financial asset and the accumulative amount of the
changes of the fair value originally included in other comprehensive income proportionate to the
transferred financial asset (financial assets transferred refer to debt instrument investments at fair
value through other comprehensive income). If the transfer of financial asset partially satisfies the
conditions for derecognition the entire carrying amount of the transferred financial asset is
between the portion which is derecognized and the portion which is not apportioned according to
their respective relative fair value and the difference between the amounts of the following two
items is included into profit or loss: (1) the carrying amount of the portion which is derecognized;
(2) the sum of consideration of the portion which is derecognized and the portion of the
accumulative amount of the changes in the fair value originally included in other comprehensive
income which is corresponding to the portion which is derecognized (financial assets transferred
refer to debt instrument investments at fair value through other comprehensive income).
4. Fair value determination method of financial assets and liabilities
The Company uses valuation techniques that are appropriate in the circumstances and for which
sufficient data and information are available to measure fair value. The inputs to valuation
techniques used to measure fair value are arranged in the following hierarchy and used
accordingly:
(1) Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities
that the Company can access at the measurement date;
(2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable
for the asset or liability either directly or indirectly. Level 2 inputs include: quoted prices for
similar assets or liabilities in active markets; quoted prices for identical or similar assets or
liabilities in markets that are not active; inputs other than quoted prices that are observable for the
asset or liability for example interest rates and yield curves observable at commonly quoted
intervals; market-corroborated inputs;
(3) Level 3 inputs are unobservable inputs for the asset or liability. Level 3 inputs include interest
rate that is not observable and cannot be corroborated by observable market data at commonly
quoted intervals historical volatility future cash flows to be paid to fulfill the disposal obligation
assumed in business combination financial forecast developed using the Company’s own data etc.
5. Impairment of financial instruments
The Company on the basis of expected credit loss recognizes loss allowances of financial assets
at amortized cost debt instrument investments at fair value through other comprehensive income
contract assets leases receivable loan commitments other than financial liabilities at fair value
through profit or loss financial guarantee contracts not belong to financial liabilities at fair value
93ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
through profit or loss or financial liabilities that arise when a transfer of a financial asset does not
qualify for derecognition or when the continuing involvement approach applies.Expected credit losses refer to the weighted average of credit losses with the respective risks of a
default occurring as the weights. Credit loss refers to the difference between all contractual cash
flows that are due to the Company in accordance with the contract and all the cash flows that the
Company expects to receive (i.e. all cash shortfalls) discounted at the original effective interest
rate. Among which purchased or originated credit-impaired financial assets are discounted at the
credit-adjusted effective interest rate.At the balance sheet date the Company shall only recognize the cumulative changes in the
lifetime expected credit losses since initial recognition as a loss allowance for purchased or
originated credit-impaired financial assets.For leases receivable and accounts receivable and contract assets resulting from transactions
regulated in ―CASBE 14 – Revenues‖ the Company chooses simplified approach to measure the
loss allowance at an amount equal to lifetime expected credit losses.For financial assets other than the above on each balance sheet date the Company shall assess
whether the credit risk on the financial instrument has increased significantly since initial
recognition. The Company shall measure the loss allowance for the financial instrument at an
amount equal to the lifetime expected credit losses if the credit risk on that financial instrument
has increased significantly since initial recognition; otherwise the Company shall measure the loss
allowance for that financial instrument at an amount equal to 12-month expected credit loss.Considering reasonable and supportable forward-looking information the Company compares the
risk of a default occurring on the financial instrument as at the balance sheet date with the risk of a
default occurring on the financial instrument as at the date of initial recognition so as to assess
whether the credit risk on the financial instrument has increased significantly since initial
recognition.The Company may assume that the credit risk on a financial instrument has not increased
significantly since initial recognition if the financial instrument is determined to have relatively
low credit risk at the balance sheet date.The Company shall estimate expected credit risk and measure expected credit losses on an
individual or a collective basis. When the Company adopts the collective basis financial
instruments are grouped with similar credit risk features.The Company shall remeasure expected credit loss on each balance sheet date and increased or
reversed amounts of loss allowance arising therefrom shall be included into profit or loss as
impairment losses or gains. For a financial asset measured at amortized cost the loss allowance
reduces the carrying amount of such financial asset presented in the balance sheet; for a debt
94ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
investment measured at fair value through other comprehensive income the loss allowance shall
be recognized in other comprehensive income and shall not reduce the carrying amount of such
financial asset.
6. Offsetting financial assets and financial liabilities
Financial assets and financial liabilities are presented separately in the balance sheet and are not
offset. However the Company offsets a financial asset and a financial liability and presents the net
amount in the balance sheet when and only when the Company: (1) currently has a legally
enforceable right to set off the recognized amounts; and (2) intends either to settle on a net basis
or to realize the asset and settle the liability simultaneously.For a transfer of a financial asset that does not qualify for derecognition the Company does not
offset the transferred asset and the associated liability.(XII) Recognition criteria and accrual method for expected credit losses of receivables and
contract assets
1. Receivables and contract assets with expected credit losses measured on a collective basis using
similar credit risk features
Basis for determination Method for measuring expected
Categories
of portfolio credit loss
Based on historical credit loss
Bank acceptance receivable experience the current situation
and the forecast of future
Type of notes economic conditions the Company
calculates expected credit loss
Trade acceptance receivable through exposure at default and
lifetime expected credit loss rate.Accounts receivable – Portfolio
grouped with balances due
Based on historical credit loss
from related parties within the
experience the current situation and
consolidation scope
the forecast of future economic
Accounts receivable – Portfolio
Nature of receivables conditions the Company calculates
grouped with property sales
expected credit loss through
receivable
exposure at default and lifetime
Accounts receivable – Portfolio
expected credit loss rate.grouped with balances due
from other customers
Other receivables – Portfolio
grouped with government
funds receivable
Other receivables – Portfolio Based on historical credit loss
grouped with employee petty experience the current situation and
cash receivable the forecast of future economic
Other receivables – Portfolio Nature of receivables conditions the Company calculates
grouped with advances expected credit loss through
received and paid on behalf of exposure at default and 12-month or
others lifetime expected credit loss rate.Other receivables – Portfolio
grouped with other
intercompany balances
95ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Basis for determination Method for measuring expected
Categories
of portfolio credit loss
receivable
Other receivables – Portfolio
grouped with balances due
from related parties receivable
Based on historical credit loss
Contract assets – Portfolio
experience the current situation and
grouped with product sales
the forecast of future economic
Nature of receivables conditions the Company calculates
Contract assets – Portfolio
expected credit loss through
grouped with engineering
exposure at default and lifetime
construction
expected credit loss rate.
2. Recognition criteria for receivables and contract assets with expected credit losses measured on
an individual basis
For receivables and contract assets whose credit risk is significantly different from that of
portfolios the Company accrues expected credit losses on an individual basis.(XIII) Inventories
1. Classification of inventories
Inventories include development land held for sale or consumption during development and
operations developed products developed products held for sale but temporarily leased out etc.as well as development cost during development.
2. Accounting method for dispatched inventories
(1) Materials and equipment dispatched from storage are accounted for with specific identification
method.
(2) During project development the development cost of land is calculated and allocated based on
the area occupied by the developed products and the grade coefficient of occupied land.
(3) Developed products dispatched from storage are accounted for with cost coefficient allocation
method.
(4) Developed products held for sale but temporarily leased out and revolving houses are evenly
amortized based on the estimated useful life of similar fixed assets of the Company.
(5) If the public supporting facilities are completed earlier than the relevant developed products
the development cost is calculated and allocated based on the construction area of the relevant
development projects after the completion settlement of the public supporting facilities; if the
public supporting facilities are completed later than the relevant developed products the public
supporting facility fees shall be accrued and after the completion settlement of the public
supporting facilities the relevant development product costs shall be adjusted based on the
difference between the actual cost incurred and cost accrued.
96ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
3. Inventory system
Physical inventory counting method is adopted.
4. Amortization method of low-value consumables and packages
(1) Low-value consumables
Low-value consumables are amortized with usage times.
(2) Packages
Packages are amortized with usage times.
5. Provision for inventory write-down
At the balance sheet date inventories are measured at the lower of cost and net realizable value;
provisions for inventory write-down are made on the excess of its cost over the net realizable
value. The net realizable value of inventories held for sale is determined based on the amount of
the estimated selling price less the estimated selling expenses and relevant taxes and surcharges in
the ordinary course of business; the net realizable value of inventories to be processed is
determined based on the amount of the estimated selling price less the estimated costs of
completion selling expenses and relevant taxes and surcharges in the ordinary course of business;
at the balance sheet date when only part of the same item of inventories have agreed price their
net realizable value are determined separately and are compared with their costs to set the
provision for inventory write-down to be made or reversed.(XIV) Long-term equity investments
1. Judgment of joint control and significant influence
Joint control is the contractually agreed sharing of control of an arrangement which exists only
when decisions about the relevant activities require the unanimous consent of the parties sharing
control. Significant influence is the power to participate in the financial and operating policy
decisions of the investee but is not control or joint control of these policies.
2. Determination of investment cost
(1) For business combination under common control if the consideration of the combining party is
that it makes payment in cash transfers non-cash assets assumes its liabilities or issues equity
securities on the date of combination it regards the share of the carrying amount of the equity of
the combined party included in the consolidated financial statements of the ultimate controlling
party as the initial cost of the investment. The difference between the initial cost of the long-term
equity investments and the carrying amount of the combination consideration paid or the par value
of shares issued offsets capital reserve; if the balance of capital reserve is insufficient to offset any
excess is adjusted to retained earnings.When long-term equity investments are obtained through business combination under common
control achieved in stages the Company determines whether it is a ―bundled transaction‖. If it is a
―bundled transaction‖ stages as a whole are considered as one transaction in accounting treatment.
97ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
If it is not a ―bundled transaction‖ on the date of combination investment cost is initially
recognized at the share of the carrying amount of net assets of the combined party included the
consolidated financial statements of the ultimate controlling party. The difference between the
initial investment cost of long-term equity investments at the acquisition date and the carrying
amount of the previously held long-term equity investments plus the carrying amount of the
consideration paid for the newly acquired equity is adjusted to capital reserve; if the balance of
capital reserve is insufficient to offset any excess is adjusted to retained earnings.
(2) For business combination not under common control investment cost is initially recognized at
the acquisition-date fair value of considerations paid.When long-term equity investments are obtained through business combination not under common
control achieved in stages the Company determined whether they are stand-alone financial
statements or consolidated financial statements in accounting treatment:
1) In the case of stand-alone financial statements investment cost is initially recognized at the
carrying amount of the previously held long-term equity investments plus the carrying amount of
the consideration paid for the newly acquired equity.
2) In the case of consolidated financial statements the Company determines whether it is a
―bundled transaction‖. If it is a ―bundled transaction‖ stages as a whole are considered as one
transaction in accounting treatment. If it is not a ―bundled transaction‖ the carrying amount of the
acquirer’s previously held equity interest in the acquiree is remeasured at the acquisition-date fair
value and the difference between the fair value and the carrying amount is recognized in
investment income; when the acquirer’s previously held equity interest in the acquiree involves
other comprehensive income under equity method the related other comprehensive income is
reclassified as income for the acquisition period excluding other comprehensive income arising
from changes in net liabilities or assets from remeasurement of defined benefit plan of the
acquiree.
(3) Long-term equity investments obtained through ways other than business combination: the
initial cost of a long-term equity investment obtained by making payment in cash is the purchase
cost which is actually paid; that obtained on the basis of issuing equity securities is the fair value
of the equity securities issued; that obtained through debt restructuring is determined according to
―CASBE 12 – Debt Restructuring‖; and that obtained through non-cash assets exchange is
determined according to ―CASBE 7 – Non-cash Assets Exchange‖.
3. Subsequent measurement and recognition method of profit or loss
For a long-term equity investment with control relationship it is accounted for with cost method;
for a long-term equity investment with joint control or significant influence relationship it is
accounted for with equity method.
98ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
4. Disposal of a subsidiary in stages resulting in the Company’s loss of control
(1) Judgement principles of ―bundled transaction‖
For disposal of a subsidiary in stages resulting in the Company’s loss of control the Company
determines whether it is a ―bundled transaction‖ based on the agreement terms for each stage
disposal consideration obtained separately object of the equity sold disposal method disposal
time point etc. If the terms conditions and economic effect of each transaction meet one or more
of the following conditions these transactions are usually considered as a ―bundled transaction‖:
1) these transactions are entered into at the same time or in contemplation of each other;
2) these transactions form a single transaction designed to achieve an overall commercial effect;
3) the occurrence of one transaction is dependent on the occurrence of at least one other
transaction; and
4) one transaction considered on its own is not economically justified but it is economically
justified when considered together with other transactions.
(2) Accounting treatments of non-bundled transactions
1) Stand-alone financial statements
The difference between the carrying amount of the disposed equity and the consideration obtained
thereof is recognized in profit or loss. If the disposal does not result in the Company’s loss of
significant influence or joint control the remained equity is accounted for with equity method;
however if the disposal results in the Company’s loss of control joint control or significant
influence the remained equity is accounted for according to ―CASBE 22 – Financial Instruments:
Recognition and Measurement‖.
2) Consolidated financial statements
Before the Company’s loss of control the difference between the disposal consideration and the
proportionate share of net assets in the disposed subsidiary from acquisition date or combination
date to the disposal date is adjusted to capital reserve (capital premium) if the balance of capital
reserve is insufficient to offset any excess is adjusted to retained earnings.When the Company loses control the remained equity is remeasured at the loss-of-control-date
fair value. The aggregated value of disposal consideration and the fair value of the remained equity
less the share of net assets in the disposed subsidiary held before the disposal from the acquisition
date or combination date to the disposal date is recognized in investment income in the period
when the Company loses control over such subsidiary and meanwhile goodwill is offset
correspondingly. Other comprehensive income related to equity investments in former subsidiary
is reclassified as investment income upon the Company’s loss of control.
(3) Accounting treatment of bundled transaction
1) Stand-alone financial statements
99ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Stages as a whole are considered as one transaction resulting in loss of control in accounting
treatment. However before the Company loses control over a subsidiary the difference between
the disposal consideration at each stage and the carrying amount of long-term equity investments
corresponding to the disposed investments is recognized as other comprehensive income at the
stand-alone financial statements and reclassified as profit or loss in the period when the Company
loses control over such subsidiary.
2) Consolidated financial statements
Stages as a whole are considered as one transaction resulting in loss of control in accounting
treatment. However before the Company loses control over a subsidiary the difference between
the disposal consideration at each stage and the proportionate share of net assets in the disposed
subsidiary is recognized as other comprehensive income at the consolidated financial statements
and reclassified as profit or loss in the period when the Company loses control over such
subsidiary.(XV) Investment property
1. Investment property includes land use right of leased-out property and of property held for
capital appreciation and buildings that have been leased out.
2. The initial measurement of investment property is based on its cost and subsequent
measurement is made using the cost model the depreciation or amortization method is the same as
that of fixed assets and intangible assets.(XVI) Fixed assets
1. Recognition principles of fixed assets
Fixed assets are tangible assets held for use in the production of goods or rendering of services for
rental to others or for administrative purposes and expected to be used during more than one
accounting year. Fixed assets are recognized if and only if it is probable that future economic
benefits associated with the assets will flow to the Company and the cost of the assets can be
measured reliably.
2. Depreciation method of different categories of fixed assets
Depreciation Useful life Residual value Annual depreciation
Categories
method (years) proportion (%) rate (%)
Buildings and Straight-line
305.003.17
structures method
Straight-line
Transport facilities 6 5.00 15.83
method
Electronic equipment Straight-line
55.0019.00
and others method
(XVII) Construction in progress
1. Construction in progress is recognized if and only if it is probable that future economic
benefits associated with the item will flow to the Company and the cost of the item can be
100ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
measured reliably. Construction in progress is measured at the actual cost incurred to reach its
designed usable conditions.
2. Construction in progress is transferred into fixed assets at its actual cost when it reaches the
designed usable conditions. When the auditing of the construction in progress is not finished while
reaching the designed usable conditions it is transferred to fixed assets using estimated value first
and then adjusted accordingly when the actual cost is settled but the accumulated depreciation is
not to be adjusted retrospectively.(XVIII) Borrowing costs
1. Recognition principle of borrowing costs capitalization
Where the borrowing costs incurred to the Company can be directly attributable to the acquisition
and construction or production of assets eligible for capitalization it is capitalized and included in
the costs of relevant assets; other borrowing costs are recognized as expenses on the basis of the
actual amount incurred and are included in profit or loss.
2. Borrowing costs capitalization period
(1) The borrowing costs are not capitalized unless the following requirements are all met: 1) the
asset disbursements have already incurred; 2) the borrowing costs have already incurred; and 3)
the acquisition and construction or production activities which are necessary to prepare the asset
for its intended use or sale have already started.
(2) Suspension of capitalization: where the acquisition and construction or production of a
qualified asset is interrupted abnormally and the interruption period lasts for more than 3 months
the capitalization of the borrowing costs is suspended; the borrowing costs incurred during such
period are recognized as expenses and are included in profit or loss till the acquisition and
construction or production of the asset restarts.
(3) Ceasing of capitalization: when the qualified asset under acquisition and construction or
production is ready for the intended use or sale the capitalization of the borrowing costs is ceased.
3. Capitalization rate and capitalized amount of borrowing costs
For borrowings exclusively for the acquisition and construction or production of assets eligible for
capitalization the to-be-capitalized amount of interests is determined in light of the actual interest
expenses incurred (including amortization of premium or discount based on effective interest
method) of the special borrowings in the current period less the interest income on the unused
borrowings as a deposit in the bank or as a temporary investment; where a general borrowing is
used for the acquisition and construction or production of assets eligible for capitalization the
Company calculates and determines the to-be-capitalized amount of interests on the general
borrowing by multiplying the weighted average asset disbursement of the excess of the
accumulative capital disbursements over the special borrowings by the capitalization rate of the
general borrowing used.
101ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
(XIX) Intangible assets
1. Intangible assets include software etc. The initial measurement of intangible assets is based on
its cost.
2. For intangible assets with finite useful lives their amortization amounts are amortized within
their useful lives systematically and reasonably if it is unable to determine the expected
realization pattern reliably intangible assets are amortized by the straight-line method with details
as follows:
Items Useful life and determination basis Amortization method
Expected realization method of
Software economic benefits related to intangible Straight-line method
assets 3-5 years
3. Expenditures on the research phase of an internal project are recognized as profit or loss when
they are incurred. An intangible asset arising from the development phase of an internal project is
recognized if the Company can demonstrate all of the followings: (1) the technical feasibility of
completing the intangible asset so that it will be available for use or sale; (2) its intention to
complete the intangible asset and use or sell it; (3) how the intangible asset will generate probable
future economic benefits among other things the Company can demonstrate the existence of a
market for the output of the intangible asset or the intangible asset itself or if it is to be used
internally the usefulness of the intangible asset; (4) the availability of adequate technical financial
and other resources to complete the development and to use or sell the intangible asset; and (5) its
ability to measure reliably the expenditure attributable to the intangible asset during its
development.(XX) Impairment of part of long-term assets
For long-term assets such as long-term equity investments investment property at cost model
fixed assets construction in progress right-of-use assets intangible assets with finite useful lives
etc. if at the balance sheet date there is indication of impairment the recoverable amount is to be
estimated. For goodwill recognized in business combination and intangible assets with indefinite
useful lives no matter whether there is indication of impairment impairment test is performed
annually. Impairment test on goodwill is performed on related asset group or asset group portfolio.When the recoverable amount of such long-term assets is lower than their carrying amount the
difference is recognized as provision for assets impairment through profit or loss.(XXI) Long-term prepayments
Long-term prepayments are expenses that have been recognized but with amortization period over
one year (excluding one year). They are recorded with actual cost and evenly amortized within
the beneficiary period or stipulated period. If items of long-term prepayments fail to be beneficial
to the following accounting periods residual values of such items are included in profit or loss.
102ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
(XXII) Employee benefits
1. Employee benefits include short-term employee benefits post-employment benefits
termination benefits and other long-term employee benefits.
2. Short-term employee benefits
The Company recognizes in the accounting period in which an employee provides service short-
term employee benefits actually incurred as liabilities with a corresponding charge to profit or
loss or the cost of a relevant asset.
3. Post-employment benefits
The Company classifies post-employment benefit plans as either defined contribution plans or
defined benefit plans.
(1) The Company recognizes in the accounting period in which an employee provides service the
contribution payable to a defined contribution plan as a liability with a corresponding charge to
profit or loss or the cost of a relevant asset.
(2) Accounting treatment by the Company for defined benefit plan usually involves the
following steps:
1) In accordance with the projected unit credit method using unbiased and mutually compatible
actuarial assumptions to estimate related demographic variables and financial variables measure
the obligations under the defined benefit plan and determine the periods to which the obligations
are attributed. Meanwhile the Company discounts obligations under the defined benefit plan to
determine the present value of the defined benefit plan obligations and the current service cost;
2) When a defined benefit plan has assets the Company recognizes the deficit or surplus by
deducting the fair value of defined benefit plan assets from the present value of the defined benefit
plan obligation as a net defined benefit plan liability or net defined benefit plan asset. When a
defined benefit plan has a surplus the Company measures the net defined benefit plan asset at the
lower of the surplus in the defined benefit plan and the asset ceiling;
3) At the end of the period the Company recognizes the following components of employee
benefits cost arising from defined benefit plan: a. service cost; b. net interest on the net defined
benefit plan liability (asset); and c. changes as a result of remeasurement of the net defined benefit
liability (asset). Item a and item b are recognized in profit or loss or the cost of a relevant asset.Item c is recognized in other comprehensive income and is not to be reclassified subsequently to
profit or loss. However the Company may transfer those amounts recognized in other
comprehensive income within equity.
4. Termination benefits
Termination benefits provided to employees are recognized as an employee benefit liability for
termination benefits with a corresponding charge to profit or loss at the earlier of the following
103ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
dates: (1) when the Company cannot unilaterally withdraw the offer of termination benefits
because of an employment termination plan or a curtailment proposal; or (2) when the Company
recognizes cost or expenses related to a restructuring that involves the payment of termination
benefits.
5. Other long-term employee benefits
When other long-term employee benefits provided to the employees satisfied the conditions for
classifying as a defined contribution plan those benefits are accounted for in accordance with the
requirements relating to defined contribution plan while other benefits are accounted for in
accordance with the requirements relating to defined benefit plan. The Company recognizes the
cost of employee benefits arising from other long-term employee benefits as the followings: (1)
service cost; (2) net interest on the net liability or net assets of other long-term employee benefits;
and (3) changes as a result of remeasurement of the net liability or net assets of other long-term
employee benefits. As a practical expedient the net total of the aforesaid amounts is recognized in
profit or loss or included in the cost of a relevant asset.(XXIII) Accounting method for maintenance funds
Pursuant to the relevant regulations of the place in which the development project located the
maintenance funds shall be collected from the buyer or included into the development costs of
relevant developed products by the Company during the sales (pre-sale) of developed products
and shall be uniformly handed over to the maintenance funds management department.(XXIV) Accounting method for quality guarantee deposits
The quality guarantee deposits shall be reserved from the engineering funds of construction unit in
accordance with the provisions of the construction contract. The maintenance costs incurred
during the warranty period of the developed products shall be offset against the quality guarantee
deposits; at the expiration of the agreed warranty period for developed products the balance of the
quality guarantee deposits shall be refunded to the construction unit.(XXV) Revenue
1. Revenue recognition principles
At contract inception the Company shall assess the contracts and shall identify each performance
obligation in the contracts and determine whether the performance obligation should be satisfied
over time or at a point in time.The Company satisfies a performance obligation over time if one of the following criteria is met
otherwise the performance obligation is satisfied at a point in time: (1) the customer
simultaneously receives and consumes the economic benefits provided by the Company’s
performance as the Company performs; (2) the customer can control goods as they are created by
the Company’s performance; (3) goods created during the Company’s performance have
irreplaceable uses and the Company has an enforceable right to the payments for performance
104ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
completed to date during the whole contract period.For each performance obligation satisfied over time the Company shall recognize revenue over
time by measuring the progress towards complete satisfaction of that performance obligation. In
the circumstance that the progress cannot be measured reasonably but the costs incurred in
satisfying the performance obligation are expected to be recovered the Company shall recognize
revenue only to the extent of the costs incurred until it can reasonably measure the progress. For
each performance obligation satisfied at a point in time the Company shall recognize revenue at
the time point that the customer obtains control of relevant goods or services. To determine
whether the customer has obtained control of goods the Company shall consider the following
indications: (1) the Company has a present right to payments for the goods i.e. the customer is
presently obliged to pay for the goods; (2) the Company has transferred the legal title of the goods
to the customer i.e. the customer has legal title to the goods; (3) the Company has transferred
physical possession of the goods to the customer i.e. the customer has physically possessed the
goods; (4) the Company has transferred significant risks and rewards of ownership of the goods to
the customer i.e. the customer has obtained significant risks and rewards of ownership of the
goods; (5) the customer has accepted the goods; (6) other evidence indicating the customer has
obtained control over the goods.
2. Revenue measurement principle
(1) Revenue is measured at the amount of the transaction price that is allocated to each
performance obligation. The transaction price is the amount of consideration to which the
Company expects to be entitled in exchange for transferring goods or services to a customer
excluding amounts collected on behalf of third parties and those expected to be refunded to the
customer.
(2) If the consideration promised in a contract includes a variable amount the Company shall
confirm the best estimate of variable consideration at expected value or the most likely amount.However the transaction price that includes the amount of variable consideration only to the
extent that it is high probable that a significant reversal in the amount of cumulative revenue
recognized will not occur when the uncertainty associated with the variable consideration is
subsequently resolved.
(3) In the circumstance that the contract contains a significant financing component the Company
shall determine the transaction price based on the price that a customer would have paid for if the
customer had paid cash for obtaining control over those goods or services. The difference between
the transaction price and the amount of promised consideration is amortized under effective
interest method over contractual period.
(4) For contracts containing two or more performance obligations the Company shall determine
the stand-alone selling price at contract inception of the distinct good underlying each
105ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
performance obligation and allocate the transaction price to each performance obligation on a
relative stand-alone selling price basis.
3. Revenue recognition method
(1) Sales of real estate development
Real estate sales business is a performance obligation satisfied at a point in time and revenue is
recognized if and only if the following conditions are all met: (1) the developed products have
been completed and accepted; (2) the Company have signed sales contract and fulfilled obligations
under the contract; (3) the Company have delivered property to the owner or the contractual
delivery date has expired after a notice or announcement of occupation has been sent to the owner;
and (4) the Company has collected the full payments for the real estate and related costs incurred
or to be incurred can be measured reliably.
(2) Rendering of property management services
Rendering of property management services is a performance obligation satisfied over time.Revenue from property management services is recognized by the progress towards complete
satisfaction of that performance obligation which is determined based on the time progress.
(3) Construction services
The Company provides construction services. Since the customer simultaneously receives and
consumes the economic benefits provided by the Company’s performance as the Company
performs and the Company has an enforceable right to the payments for performance completed
to date during the whole contract period construction services are performance obligations
satisfied over time. Revenue from construction services is recognized by the percentage of
completion of the performance obligations which is determined by input method. In the
circumstance that the percentage of completion cannot be measured reasonably but the incurred
costs are expected to be recovered the Company recognizes revenue only to the extent of the
incurred costs until it can reasonably measure the percentage of completion.
(4) Others
Other revenues include revenue from hotel operation etc. For revenue from rendering of hotel
room services as the customer simultaneously receives and consumes the economic benefits
provided by the Company’s performance as the Company performs the Company recognizes it as
a performance obligation to be performed over time and revenue is recognized based on the
percentage of completion of the performance obligation during the accounting period when
services are provided. For revenue from rendering of other services it is recognized when the
customer has obtained the control over related goods and the Company has collected the
payments or has obtained the right to the payments according to relevant contract and agreement.(XXVI) Costs of obtaining a contract and costs to fulfill a contract
The Company recognizes as an asset the incremental costs of obtaining a contract if those costs
106ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
are expected to be recovered.If the costs incurred in fulfilling a contract are not within the scope of standards related to
inventories fixed assets or intangible assets etc. the Company shall recognize the costs to fulfill a
contract as an asset if all the following criteria are satisfied:
1. The costs relate directly to a contract or to an anticipated contract including direct labor direct
materials manufacturing overhead cost (or similar cost) cost that are explicitly chargeable to the
customer under the contract and other costs that are only related to the contract;
2. The costs enhance resources of the Company that will be used in satisfying performance
obligations in the future; and
3. The costs are expected to be recovered.
An asset related to contract costs shall be amortized on a systematic basis that is consistent with
related goods or services with amortization included into profit or loss.The Company shall make provision for impairment and recognize an impairment loss to the extent
that the carrying amount of an asset related to contract costs exceeds the remaining amount of
consideration that the Company expects to receive in exchange for the goods or services to which
the asset relates less the costs expected to be incurred. The Company shall recognize a reversal of
an impairment loss previously recognized in profit or loss when the impairment conditions no
longer exist or have improved. The carrying amount of the asset after the reversal shall not exceed
the amount that would have been determined on the reversal date if no provision for impairment
had been made previously.(XXVII) Contract assets contract liabilities
The Company presents contract assets or contract liabilities in the balance sheet based on the
relationship between its performance obligations and customers’ payments. Contract assets and
contract liabilities under the same contract shall offset each other and be presented on a net basis.The Company presents an unconditional right to consideration (i.e. only the passage of time is
required before the consideration is due) as a receivable and presents a right to consideration in
exchange for goods that it has transferred to a customer (which is conditional on something other
than the passage of time) as a contract asset.The Company presents an obligation to transfer goods to a customer for which the Company has
received consideration (or the amount is due) from the customer as a contract liability.(XXVIII) Government grants
1. Government grants shall be recognized if and only if the following conditions are all met: (1)
the Company will comply with the conditions attaching to the grants; (2) the grants will be
received. Monetary government grants are measured at the amount received or receivable. Non-
monetary government grants are measured at fair value and can be measured at nominal amount
107ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
in the circumstance that fair value cannot be assessed.
2. Government grants related to assets
Government grants related to assets are government grants with which the Company purchases
constructs or otherwise acquires long-term assets under requirements of government. In the
circumstances that there is no specific government requirement the Company shall determine
based on the primary condition to acquire the grants and government grants related to assets are
government grants whose primary condition is to construct or otherwise acquire long-term assets.They offset carrying amount of relevant assets or they are recognized as deferred income. If
recognized as deferred income they are included in profit or loss on a systematic basis over the
useful lives of the relevant assets. Those measured at notional amount are directly included into
profit or loss. For assets sold transferred disposed or damaged within the useful lives balance of
unamortized deferred income is transferred into profit or loss of the period in which the disposal
occurred.
3. Government grants related to income
Government grants related to income are government grants other than those related to assets. For
government grants that contain both parts related to assets and parts related to income in which
those two parts are blurred they are thus collectively classified as government grants related to
income. For government grants related to income used for compensating the related future cost
expenses or losses they are recognized as deferred income and included in profit or loss or used to
offset relevant cost during the period in which the relevant cost expenses or losses are recognized;
for government grants related to income used for compensating the related cost expenses or losses
incurred to the Company they are directly included in profit or loss or used to offset relevant cost.
4. Government grants related to the ordinary course of business shall be included into other
income or used to offset relevant cost based on business nature while those not related to the
ordinary course of business shall be included into non-operating revenue or expenditures.
5. Policy interest subvention
(1) In the circumstance that government appropriates interest subvention to lending bank who
provides loans for the Company with a policy subsidised interest rate borrowings are carried at
the amount received with relevant borrowings cost computed based on the principal and the
policy subsidised interest rate.
(2) In the circumstance that government directly appropriates interest subvention to the Company
the subsidised interest shall offset relevant borrowing cost.(XXIX) Deferred tax assets/Deferred tax liabilities
1. Deferred tax assets or deferred tax liabilities are calculated and recognized based on the
difference between the carrying amount and tax base of assets and liabilities (and the difference of
the carrying amount and tax base of items not recognized as assets and liabilities but with their tax
108ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
base being able to be determined according to tax laws) and in accordance with the tax rate
applicable to the period during which the assets are expected to be recovered or the liabilities are
expected to be settled.
2. A deferred tax asset is recognized to the extent of the amount of the taxable income which is
most likely to obtain and which can be deducted from the deductible temporary difference. At the
balance sheet date if there is any exact evidence indicating that it is probable that future taxable
income will be available against which deductible temporary differences can be utilized the
deferred tax assets unrecognized in prior periods are recognized.
3. At the balance sheet date the carrying amount of deferred tax assets is reviewed. The carrying
amount of a deferred tax asset is reduced to the extent that it is no longer probable that sufficient
taxable income will be available to allow the benefit of the deferred tax asset to be utilized. Such
reduction is subsequently reversed to the extent that it becomes probable that sufficient taxable
income will be available.
4. The income tax and deferred tax for the period are treated as income tax expenses or income
through profit or loss excluding those arising from the following circumstances: (1) business
combination; and (2) the transactions or items directly recognized in equity.
5. Deferred tax assets and deferred tax liabilities shall offset each other and be presented on a net
basis when the following conditions are all met: (1) the Company has the legal right to settle off
current tax assets against current tax liabilities; (2) the deferred tax assets and the deferred tax
liabilities relate to income taxes levied by the same tax authority on either: 1) the same taxable
entity; or 2) different taxable entities which intend either to settle current tax liabilities and assets
on a net basis or to realize the assets and settle the liabilities simultaneously in each future period
in which significant amounts of deferred tax assets or liabilities are expected to be recovered or
settled.(XXX) Leases
1. The Company as lessee
At the commencement date the Company recognizes a lease that has a lease term of 12 months or
less as a short-term lease which shall not contain a purchase option; the Company recognizes a
lease as a lease of a low-value asset if the underlying asset is of low value when it is new. If the
Company subleases an asset or expects to sublease an asset the head lease does not qualify as a
lease of a low-value asset.For all short-term leases and leases of low-value assets lease payments are recognized as cost or
profit or loss with straight-line method over the lease term.Apart from the above-mentioned short-term leases and leases of low-value assets with simplified
approach the Company recognizes right-of-use assets and lease liabilities at the commencement
109ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
date.
(1) Right-of-use assets
The right-of-use asset is measured at cost and the cost shall comprise: 1) the amount of the initial
measurement of the lease liabilities; 2) any lease payments made at or before the commencement
date less any lease incentives received; 3) any initial direct costs incurred by the lessee; and 4) an
estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset
restoring the site on which it is located or restoring the underlying asset to the condition required
by the terms and conditions of the lease.The Company depreciates the right-of-use asset using the straight-line method. If it is reasonable
to be certain that the ownership of the underlying asset can be acquired by the end of the lease
term the Company depreciates the right-of-use asset from the commencement date to the end of
the useful life of the underlying asset. Otherwise the Company depreciates the right-of-use asset
from the commencement date to the earlier of the end of the useful life of the right-of-use asset or
the end of the lease term.
(2) Lease liabilities
At the commencement date the Company measures the lease liability at the present value of the
lease payments that are not paid at that date discounted using the interest rate implicit in the lease.If that rate cannot be readily determined the Company’s incremental borrowing rate shall be used.Unrecognized financing expenses calculated at the difference between the lease payment and its
present value are recognized as interest expenses over the lease term using the discount rate
which has been used to determine the present value of lease payment and included in profit or loss.Variable lease payments not included in the measurement of lease liabilities are included in profit
or loss in the periods in which they are incurred.After the commencement date if there is a change in the following items: 1) actual fixed payments;
2) amounts expected to be payable under residual value guarantees; 3) an index or a rate used to
determine lease payments; 4) assessment result or exercise of purchase option extension option or
termination option the Company remeasures the lease liability based on the present value of lease
payments after changes and adjusts the carrying amount of the right-of-use asset accordingly. If
the carrying amount of the right-of-use asset is reduced to zero but there shall be a further
reduction in the lease liability the remaining amount shall be recognized into profit or loss.
2. The Company as lessor
At the commencement date the Company classifies a lease as a finance lease if it transfers
substantially all the risks and rewards incidental to ownership of an underlying asset. Otherwise it
is classified as an operating lease.
(1) Operating lease
Lease receipts are recognized as lease income with straight-line method over the lease term. Initial
110ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
direct costs incurred shall be capitalized amortized on the same basis as the recognition of lease
income and included into profit or loss by installments. Variable lease payments related to
operating lease which are not included in the lease payment are charged as profit or loss in the
periods in which they are incurred.
(2) Finance lease
At the commencement date the Company recognizes the finance lease payment receivable based
on the net investment in the lease (sum of the present value of unguaranteed residual value and
lease receipts that are not received at the commencement date discounted by the interest rate
implicit in the lease) and derecognizes assets held under the finance lease. The Company
calculates and recognizes interest income using the interest rate implicit in the lease over the lease
term.Variable lease payments not included in the measurement of the net investment in the lease are
charged as profit or loss in the periods in which they are incurred.(XXXI) Segment reporting
Operating segments are determined based on the structure of the Company’s internal organization
management requirements and internal reporting system. An operating segment is a component of
the Company:
1. that engages in business activities from which it may earn revenues and incur expenses;
2. whose financial performance is regularly reviewed by the Management to make decisions about
resource to be allocated to the segment and to assess its performance; and
3. for which accounting information regarding financial position financial performance and cash
flows is available through analysis.(XXXII) Significant changes in accounting policies
Changes in accounting policies arising from changes in CASBEs
The Company has adopted the regulations about accounting for deferred tax related to assets and
liabilities arising from a single transaction to which the initial recognition exemption does not
apply in the ―Interpretation of China Accounting Standards for Business Enterprises No. 16‖
issued by the Ministry of Finance since January 1 2023 and makes adjustments on such single
transactions occurring between the beginning of the earliest comparative period and the first
adoption date accordingly. Such change in accounting policies has no impact on the Company’s
financial statements.
111ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
IV. Taxes
(I) Main taxes and tax rates
Taxes Tax bases Tax rates
The output tax calculated based on the revenue
from sales of goods or rendering of services in
9%6%5%
Value-added tax (VAT) accordance with the tax law net of the input
3%
tax that is allowed to be deducted in the
current period
Progressive tax
The incremental amount arising from the rates based on
transfer of state-owned land use right and the exceeding
Land appreciation tax
buildings and structures that are constructed proportion of
on the land value-added
amount
For housing property levied on the basis of
price housing property tax is levied at the rate
of 1.2% of the balance after deducting 30% of
Housing property tax 1.2% 12%
the cost; for housing property levied on the
basis of rent housing property tax is levied at
the rate of 12% of lease income
Urban maintenance and
Turnover tax actually paid 7%
construction tax
Education surcharge Turnover tax actually paid 3%
Local education surcharge Turnover tax actually paid 2%
Enterprise income tax Taxable income 25% 16.5%
Different enterprise income tax rates applicable to different taxpayers:
Taxpayers Income tax rate
Shenzhen Huazhan Construction Supervision Co.Ltd. (the ―Huazhan Supervision‖) and Shantou
Special Economic Zone Xiangshan Real Estate 20%
Development Co. Ltd. (the ―Shantou Songshan
Company‖)
Subsidiaries registered in Hong Kong SAR 16.5%
Taxpayers other than the above-mentioned 25%
(II) Tax preferential policies
Pursuant to the ―Announcement of the Ministry of Finance and the State Taxation Administration
on the Enterprise Income Tax Preferential Policies for Small Enterprises with Meager Profit and
Individually-owned Businesses‖ (Announcement [2023] No. 6 of the Ministry of Finance and the
State Taxation Administration) from January 1 2023 to December 31 2024 enterprise income
tax for the portion of the taxable income within 1 million yuan of small enterprises with meager
profit is levied at 20% based on 25% of that portion of income. The Company’s subsidiaries
Huazhan Supervision and Shantou Songshan Company are subject to a preferential tax rate of 20%
as small enterprises with meager profit.
112ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
V. Notes to items of consolidated financial statements
(I) Notes to items of the consolidated balance sheet
1. Cash and bank balances
(1) Details
Items Closing balance Opening balance
Cash on hand 18414.04 4549.61
Cash in bank 838926014.14 163083275.13
Other cash and bank balances 32074840.65 34576125.00
Total 871019268.83 197663949.74
Including: Deposited overseas 5230453.64 5840173.03
(2) Other remarks
Closing balance of cash in bank with use restrictions totaled 11872855.48 yuan including funds
frozen due to lawsuits of 5943085.18 yuan suspended accounts and stopped payments of 62552.52
yuan funds for construction of public facilities in and around the urban renewal project of Longgang
District Shenzhen City of 5674439.78 yuan land reclamation costs of the Guangming Lane project of
142778.00 yuan and deposits for fixed-term engineering of 50000.00 yuan.
At the balance sheet date closing balance of other cash and bank balances of 32074840.65 yuan was
seven-day notice deposit.
2. Held-for-trading financial assets
Items Closing balance Opening balance
Financial assets classified as at fair value
879340201.92408154361.42
through profit or loss
Including: Fund 879340201.92 408154361.42
Total 879340201.92 408154361.42
3. Notes receivable
(1) Details
Items Closing balance Opening balance
Bank acceptance
Trade acceptance 1536150.00
Total 1536150.00
113ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
(2) Provision for bad debts
Opening balance
Book balance Provision for bad debts
Categories
Provision Carrying
% to
Amount Amount proportion amount
total
(%)
Receivables with provision
for bad debts made on a 1617000.00 100.00 80850.00 5.00 1536150.00
collective basis
Including: Bank acceptance
Trade acceptance 1617000.00 100.00 80850.00 5.00 1536150.00
Total 1617000.00 100.00 80850.00 5.00 1536150.00
(3) Changes in provision for bad debts
Increase/Decrease
Opening Closing
Items
balance Recovery Accrual Write-off Others balance
or reversal
Receivables with provision
for bad debts made on an
individual basis
Receivables with provision
for bad debts made on a 80850.00 80850.00
collective basis
Total 80850.00 80850.00
4. Accounts receivable
(1) Age analysis
Ages Closing book balance Opening book balance
Within 1 year 71406321.18 64697535.13
1-2 years 9482461.05 8701822.68
2-3 years 7444786.11 290567.01
3-4 years 169754.01 5093814.79
4-5 years 3027934.33
Over 5 years 18050798.87 18825122.29
Total 109582055.55 97608861.90
114ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
(2) Provision for bad debts
1) Details on categories
Closing balance
Book balance Provision for bad debts
Categories
Provision Carrying
% to
Amount Amount proportion amount
total
(%)
Receivables with
provision for bad
24983383.2522.8024983383.25100.00
debts made on an
individual basis
Receivables with
provision for bad
84598672.3077.209497701.4711.2375100970.83
debts made on a
collective basis
Total 109582055.55 100.00 34481084.72 31.47 75100970.83
(Continued)
Opening balance
Book balance Provision for bad debts
Categories
Provision Carrying
% to
Amount Amount proportion amount
total
(%)
Receivables with
provision for bad
36722640.7337.6232006890.2487.164715750.49
debts made on an
individual basis
Receivables with
provision for bad
60886221.1762.382021549.503.3258864671.67
debts made on a
collective basis
Total 97608861.90 100.00 34028439.74 34.86 63580422.16
2) Significant accounts receivable with provision made on an individual basis
Opening balance Closing balance
Debtors Provision
Provision for Provision for Basis for
Book balance Book balance proportion
bad debts bad debts provision
(%)
Payments for goods of
Expected to be
agency import and 11574556.00 11574556.00 11574556.00 11574556.00 100.00
irrecoverable
export business
Long-term
Expected to be
unrecovered property 10020587.91 10020587.91 10084109.60 10084109.60 100.00
irrecoverable
sales
Accounts receivable
Expected to be
due from revoked 2328158.40 2328158.40 2314755.46 2314755.46 100.00
irrecoverable
subsidiaries
Shenzhen Hongteng
Investment 11789376.23 7073625.74
Management Co. Ltd.Balances due from Expected to be
1009962.191009962.191009962.191009962.19100.00
other customers irrecoverable
Subtotal 36722640.73 32006890.24 24983383.25 24983383.25 100.00
115ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
3) Accounts receivable with provision for bad debts made on a collective basis
Closing balance
Items
Book balance Provision for bad debts Provision proportion (%)
Portfolio grouped
with balances due 84598672.30 9497701.47 11.23
from other customers
Subtotal 84598672.30 9497701.47 11.23
(3) Changes in provision for bad debts
1) Details
Increase/Decrease
Opening Closing
Items
balance Recovery or Write- balance
Accrual Others
reversal off
Receivables with
provision for bad
32006890.243994030.79-3029476.2024983383.25
debts made on an
individual basis
Receivables with
provision for bad
2021549.504446675.773029476.209497701.47
debts made on a
collective basis
Total 34028439.74 4446675.77 3994030.79 34481084.72
2) Significant provisions for bad debts collected or reversed
Basis and reasonableness for
Amount collected Reasons for Ways of
Debtors recognition of original
or reversed reversal collection
provision for bad debts
In the preceding period
provisions were made
Shenzhen thereon on an individual
Hongteng Project funds basis as the recoverability
Bank
Investment 3994030.79 have been was expected to be
transfer
Management recovered. relatively low. In the current
Co. Ltd. period the provisions were
reversed as the balances
have been recovered.Subtotal 3994030.79
(4) Details of the top 5 debtors with largest balances of accounts receivable and contracted asset
Closing book balance Provision for bad Proportion to the
debts of accounts
total balance of
receivable and
Debtors accounts
Accounts Contract provision for
Subtotal receivable and
receivable assets impairment of
contract assets (%)
contract assets
Shenzhen Hongteng
Investment 11882292.92 11882292.92 8.62 3032263.70
Management Co. Ltd.Shenzhen Jiangong
8708474.591952557.2110661031.807.74336492.92
Group Co. Ltd.Hubei Chuheng
9725542.05318968.1510044510.207.29301335.30
Property Co. Ltd.Wuhan Yutian Xingye
8962707.76498737.479461445.236.87323003.75
Land Co. Ltd.China Construction
4227690.553951814.328179504.875.94245385.15
Xinjiang Construction
116ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Closing book balance Provision for bad Proportion to the
debts of accounts
total balance of
receivable and
Debtors accounts
Accounts Contract provision for
Subtotal receivable and
receivable assets impairment of
contract assets (%)
contract assets
Engineering (Group)
Co. Ltd.Subtotal 43506707.87 6722077.15 50228785.02 36.46 4238480.82
(5) Other remarks
As of December 31 2023 the balance of factoring receivables already transferred but not yet
derecognized was 24340361.58 yaun.
5. Advances paid
(1) Age analysis
Closing balance
Ages Provision for
Book balance % to total Carrying amount
impairment
Within 1 year 12271.61 3.00 12271.61
1-2 years
2-3 years 196920.46 48.12 196920.46
Over 3 years 200000.00 48.88 200000.00
Total 409192.07 100.00 409192.07
(Continued)
Opening balance
Ages Provision for
Book balance % to total Carrying amount
impairment
Within 1 year 626155.65 53.80 626155.65
1-2 years 336699.64 28.94 336699.64
2-3 years 206.95 0.02 206.95
Over 3 years 200550.00 17.24 200550.00
Total 1163612.24 100.00 1163612.24
(2) Details of the top 5 debtors with largest balances
Proportion to the total
Debtors Book Balance balance of advances
paid (%)
Guangdong Legal Shengbang (Shenzhen)
200000.0048.88
Law Firm
Huizhou Huiyang Power Supply Bureau of
98840.2924.15
Guangdong Power Grid Co. Ltd.China Telecom Co. Ltd. 9493.70 2.32
Guangdong Yuetong Card Information
7850.791.92
Technology Service Co. Ltd.Guangdong Shenzhen Petroleum Branch of
2777.910.68
Sinopec Sales Corporation
117ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Proportion to the total
Debtors Book Balance balance of advances
paid (%)
Subtotal 318962.69 77.95
6. Other receivables
(1) Other receivables categorized by nature
Nature of receivables Closing book balance Opening book balance
Portfolio grouped with balances due from
161393309.25156470188.49
related parties
Portfolio grouped with government funds
165460.00165460.00
receivable
Portfolio grouped with employee petty cash
841714.00147810.19
receivable
Portfolio grouped with advances received and
360901.91689317.63
paid on behalf of others
Portfolio grouped with other intercompany
44888290.8179862906.45
balances receivable
Total 207649675.97 237335682.76
(2) Age analysis
Ages Closing book balance Opening book balance
Within 1 year 6047963.14 48019676.18
1-2 years 15390258.93 1185433.74
2-3 years 103956.68 18023.00
3-4 years 200.00 1628670.73
4-5 years 100.00 18120785.56
Over 5 years 186107197.22 168363093.55
Total 207649675.97 237335682.76
(3) Provision for bad debts
1) Details on categories
Closing balance
Book balance Provision for bad debts
Categories
Provision Carrying
% to
Amount Amount proportion amount
total
(%)
Receivables with
provision made
191444224.0692.20191075243.8699.81368980.20
on an individual
basis
Receivables with
provision made
16205451.917.80680695.834.2015524756.08
on a collective
basis
Subtotal 207649675.97 100.00 191755939.69 92.35 15893736.28
118ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
(Continued)
Opening balance
Book balance Provision for bad debts
Categories
Provision Carrying
% to
Amount Amount proportion amount
total
(%)
Receivables with
provision made
193705873.5181.62193705873.51100.00
on an individual
basis
Receivables with
provision made
43629809.2518.381524758.923.4942105050.33
on a collective
basis
Subtotal 237335682.76 100.00 195230632.43 82.26 42105050.33
2) Significant other receivables with provision made on an individual basis
Opening balance Closing balance
Debtors Provision
Provision for Provision for Basis for
Book balance Book balance proportion
bad debts bad debts provision
(%)
Canada Great
Expected to be
Wall (Vancouver) 89035748.07 89035748.07 89035748.07 89035748.07 100.00
irrecoverable
Co. Ltd.Expected to be
Paklid Limited 19390888.26 19390888.26 19393335.84 19393335.84 100.00
irrecoverable
Australia Berkton Expected to be
12559290.5812559290.5812559290.5812559290.58100.00
Property Limited irrecoverable
Guangdong
Huizhou
Luofushan Expected to be
10465168.8110465168.8110465168.8110465168.81100.00
Mineral Water irrecoverable
Beverage Co.Ltd.Xi’an Xinfeng
Expected to be
Property Trading 8419205.19 8419205.19 8419205.19 8419205.19 100.00
irrecoverable
Co. Ltd.Shenzhen Shenxi
Building Expected to be
7660529.377660529.377660529.377660529.37100.00
Decoration Co. irrecoverable
Ltd.Beijing SPG
Property Expected to be
6905673.696533817.096905673.696533817.0994.62
Management Co. irrecoverable
Ltd.Bao’an Shopping Expected to be
6343030.656343030.656343030.656343030.65100.00
Center irrecoverable
Shenzhen
Expected to be
Nanyang Hotel 3168721.00 3168721.00 3168721.00 3168721.00 100.00
irrecoverable
Co. Ltd.Shenzhen
Runhua Expected to be
3072764.423072764.423072764.423072764.42100.00
Automobile irrecoverable
Trading Co. Ltd.Shenzhen Local
Building Expected to be
3000000.003000000.003000000.003000000.00100.00
Materials Co. irrecoverable
Ltd.Jun Xin He Co. Expected to be
2800000.002800000.002800000.002800000.00100.00
Ltd. irrecoverable
119ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Opening balance Closing balance
Debtors Provision
Provision for Provision for Basis for
Book balance Book balance proportion
bad debts bad debts provision
(%)
Harbin City
Power District Expected to be
1970000.001970000.001970000.001970000.00100.00
Xinle Feed irrecoverable
Processing Plant
Newmore Co. Expected to be
1868735.451868735.451868735.451868735.45100.00
Ltd. irrecoverable
Subtotal 176659755.49 176287898.89 176662203.07 176290346.47 99.79
3) Other receivables with provision made on a collective basis
Closing balance
Portfolios Provision for bad Provision
Book balance
debts proportion (%)
Portfolio grouped with balances due
1580607.43
from related parties
Portfolio grouped with government
165460.00
funds receivable
Portfolio grouped with employee petty
841714.00
cash receivable
Portfolio grouped with advances
360901.9118045.105.00
received and paid on behalf of others
Portfolio grouped with other
13256768.57662650.735.00
intercompany balances receivable
Subtotal 16205451.91 680695.83 4.20
(4) Changes in provision for bad debts
Stage 1 Stage 2 Stage 3
Lifetime expected
Items 12month Lifetime expected credit losses Total
expected credit losses
(credit not
credit losses (credit impaired)
impaired)
Opening balance 2004832.46 18194.53 193207605.44 195230632.43
Opening balance in the
——————
current period
--Transferred to stage 2 -259933.63 259933.63
--Transferred to stage 3 -5182.20 5182.20
--Reversed to stage 2
--Reversed to stage 1
Provision made in the
-1566981.03101233.86527332.37-938414.80
current period
Provision recovered or
reversed in the current
period
Provision written off in
the current period
Other changes -2536277.94 -2536277.94
Closing balance 177917.80 374179.82 191203842.07 191755939.69
120ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Stage 1 Stage 2 Stage 3
Lifetime expected
Items 12month Lifetime expected credit losses Total
expected credit losses
(credit not
credit losses (credit impaired)
impaired)
Provision proportion
3.464.9898.0592.35
(%)
(5) Details of the top 5 debtors with largest balances
Proportion to the Provision for
Nature of Closing book total balance of bad debts at the
Debtors Ages
receivables balance other receivables end of the
(%) period
Canada Great Balances due
Over
Wall (Vancouver) from related 89035748.07 42.88 89035748.07
5 years
Co. Ltd. parties
Balances due
Over
Paklid Limited from related 19393335.84 9.34 19393335.84
5 years
parties
Balances due
Australia Berkton Over
from related 12559290.58 6.05 12559290.58
Property Limited 5 years
parties
Guangdong
Huizhou
Balances due
Luofushan Over
from related 10465168.81 5.04 10465168.81
Mineral Water 5 years
parties
Beverage Co.Ltd.Xi’an Xinfeng Balances due
Over
Property Trading from related 8419205.19 4.05 8419205.19
5 years
Co. Ltd. parties
Subtotal 139872748.49 67.36 139872748.49
7. Inventories
(1) Details
Closing balance
Items Provision for write-down/
Book balance Carrying amount
impairment
Development costs 3572697115.80 391731506.81 3180965608.99
Developed products 733935274.64 733935274.64
Raw materials 49504.00 49504.00
Goods on hand 304426.24 38891.91 265534.33
Total 4306986320.68 391770398.72 3915215921.96
(Continued)
Opening balance
Items Provision for write-down/
Book balance Carrying amount
impairment
Development costs 3413963261.85 3413963261.85
Developed products 842847684.33 842847684.33
Raw materials 8458.34 8458.34
121ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Opening balance
Items Provision for write-down/
Book balance Carrying amount
impairment
Goods on hand 329101.70 38891.91 290209.79
Total 4257148506.22 38891.91 4257109614.31
(2) Provision for inventory write-down/provision for impairment of costs to fulfill a contract
1) Details
Increase Decrease
Opening
Items Closing balance
balance Reversal or
Accrual Others Others
write-off
Development
391731506.81391731506.81
costs
Goods on hand 38891.91 38891.91
Total 38891.91 391731506.81 391770398.72
2) Determination basis of net realizable value and reasons for the reversal or write-off of provision
for inventory write-down
Reasons for reversal of Reasons for write-off
Determination basis of net
Items provision for inventory of provision for
realizable value
write-down inventory write-down
Estimated selling price of
inventories less costs to be
Development costs incurred upon completion
estimated selling expenses and
relevant taxes and surcharges
Net realizable value is determined
based on the estimated selling
Developed products price of developed products less
costs estimated selling expenses
and relevant taxes and surcharges
Net realizable value is determined
based on the estimated selling
Goods on hand price of goods on hand less costs
estimated selling expenses and
relevant taxes and surcharges
(3) Capitalization of borrowing cost
Closing capitalized amount Calculation criteria and basis of
Items
of borrowing cost capitalized amount
Based on the interest rate agreed
Shenfang Linxin Community 40384162.95
upon in the loan contract
Based on the interest rate agreed
Shenfang Guangming Lane 5503824.56
upon in the loan contract
Subtotal 45887987.51
122ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
(4) Other remarks
1) Inventories - development costs
Estimated total
Estimated Closing balance
investments (in
Projects Start time completion Opening balance Closing balance of provision for
ten thousand
time write-down
yuan)
Shenfang
Linxin 2021 2024 300000.00 2290805229.96 2310161672.58 391731506.81
Community
Shenfang
Guangming 2022 2024 152060.00 1094866123.78 1234243535.11
Lane
Shantou
Xinfeng / / / 28291908.11 28291908.11
Building
Subtotal 452060.00 3413963261.85 3572697115.80 391731506.81
2) Inventories - developed products
Closing
Completion balance of
Projects Opening balance Increase Decrease Closing balance
time provision for
write-down
Tianyue Bay
2021512790161.7948563878.57464226283.22
Phase II
Tianyue Bay
2017225653522.8327153581.49198499941.34
Phase I
Golden Leaf
Island Haitian
Pavilion Multi 1997 39546392.27 188371.60 39734763.87
Multi-Story
Apartment
Shenfang Cuilin
201845617437.7928572790.5417044647.25
Community
Yue King
20146476404.76355377.696121027.07
Oriental Project
Golden Leaf
20105696007.2554728.715641278.54
Island Phase X
Golden Leaf
20082333281.42110505.122222776.30
Island Phase XI
Beijing Xinfeng
304557.05304557.05
Building
Whampoa New
140000.00140000.00
Village
Chuanqi East
20194289919.174289919.17
Lake Community
Subtotal 842847684.33 188371.60 109100781.29 733935274.64
8. Contract assets
(1) Details
Closing balance Opening balance
Items
Provision for Carrying Book Provision for Carrying
Book balance
impairment amount balance impairment amount
Quality guarantee
28198553.53845956.6127352596.92
deposit receivable
Total 28198553.53 845956.61 27352596.92
123ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
(2) Details on provision for impairment
1) Details on categories
Closing balance
Categories Book balance Provision for impairment Carrying
% to Provision
Amount Amount amount
total proportion (%)
Receivables with
provision made on 28198553.53 100.00 845956.61 3.00 27352596.92
a collective basis
Total 28198553.53 100.00 845956.61 3.00 27352596.92
2) Contract assets with provision for impairment made on a collective basis
Closing balance
Portfolios
Book balance Provision for impairment Provision proportion (%)
Portfolio grouped
with engineering 28198553.53 845956.61 3.00
constructions
Subtotal 28198553.53 845956.61 3.00
(3) Changes in provision for impairment
Increase/Decrease
Opening Closing
Items
balance Recovery Accrual Write-off Others balance
or reversal
On a collective basis 845956.61 845956.61
Total 845956.61 845956.61
9. Other current assets
(1) Details
Closing balance Opening balance
Items Provision Provision
Carrying Carrying
Book balance for Book balance for
amount amount
impairment impairment
Overpaid or
prepaid
6212008.006212008.001692386.281692386.28
enterprise
income taxes
Prepaid VAT 1974376.95 1974376.95 1620352.66 1620352.66
Costs to
obtain a 6815071.01 6815071.01 1212848.49 1212848.49
contract
Input VAT to
64189088.6164189088.6129247467.1629247467.16
be credited
Land
appreciation 3472045.32 3472045.32 1813337.72 1813337.72
tax
Business tax 195546.35 195546.35 250719.98 250719.98
Others 4317126.82 4317126.82 941529.13 941529.13
124ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Closing balance Opening balance
Items Provision Provision
Carrying Carrying
Book balance for Book balance for
amount amount
impairment impairment
Total 87175263.06 87175263.06 36778641.42 36778641.42
(2) Costs to obtain a contract
Opening Provision for Closing
Items Increase Amortization
balance impairment balance
Shenfang
Guangming 5417176.01 5417176.01
Lane
Linxin
1212848.49185046.511397895.00
Community
Subtotal 1212848.49 5602222.52 6815071.01
10. Long-term equity investments
(1) Categories
Closing balance Opening balance
Items
Provision for Carrying Provision for Carrying
Book balance Book balance
impairment amount impairment amount
Investments in
19424671.4719424671.4719424671.4719424671.47
joint ventures
Investments in
32898465.0932898465.0932992392.7332898465.0993927.64
associates
Other equity
167761564.39167761564.39167761564.39167761564.39
investments
Total 220084700.95 220084700.95 220178628.59 220084700.95 93927.64
(2) Details
Opening balance Increase/Decrease
Investees Investment income Adjustment in other
Carrying Provision for Investments Investments
recognized under comprehensive
amount impairment increased decreased
equity method income
Joint ventures
Guangdong
Huizhou Luofushan
9969206.09
Mineral Water
Beverage Co. Ltd.Fengkai Xinghua
9455465.38
Hotel
Subtotal 19424671.47
Associates
Shenzhen Ronghua
Electromechanical 93927.64 1076954.64 -93927.64
Engineering Co. Ltd.Shenzhen Runhua
Automobile Trading 1445425.56
Co. Ltd.Dongyi Properties
30376084.89
Co. Ltd.Subtotal 93927.64 32898465.09 -93927.64
125ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Opening balance Increase/Decrease
Investees Investment income Adjustment in other
Carrying Provision for Investments Investments
recognized under comprehensive
amount impairment increased decreased
equity method income
Other equity
investments
Paklid Limited 201100.00
Berkton Australia
906630.00
Co. Ltd.Shenzhen Shenfang
Department Store 10000000.00
Co. Ltd.Shantou Xinfeng
58547652.25
Building
Guangdong Fengkai
Lianfeng Cement
56228381.64
Manufacturing Co.Ltd.Jiangmen Xinjiang
Real Estate Co. 9037070.89
Ltd.Xi’an Xinfeng
Property Trading 32840729.61
Co. Ltd.Subtotal 167761564.39
Total 93927.64 220084700.95 -93927.64
(Continued)
Increase/Decrease Closing balance
Investees Cash dividend/
Changes in Provision for Provision for
Profit declared for Others Carrying amount
other equity impairment impairment
distribution
Joint ventures
Guangdong
Huizhou Luofushan
9969206.09
Mineral Water
Beverage Co. Ltd.Fengkai Xinghua
9455465.38
Hotel
Subtotal 19424671.47
Associates
Shenzhen Ronghua
Electromechanical 1076954.64
Engineering Co. Ltd.Shenzhen Runhua
Automobile Trading 1445425.56
Co. Ltd.Dongyi Properties
30376084.89
Co. Ltd.Subtotal 32898465.09
Other equity
investments
Paklid Limited 201100.00
Berkton Australia
906630.00
Co. Ltd.Shenzhen Shenfang
Department Store 10000000.00
Co. Ltd.
126ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Increase/Decrease Closing balance
Investees Cash dividend/
Changes in Provision for Provision for
Profit declared for Others Carrying amount
other equity impairment impairment
distribution
Shantou Xinfeng
58547652.25
Building
Guangdong Fengkai
Lianfeng Cement
56228381.64
Manufacturing Co.Ltd.Jiangmen Xinjiang
Real Estate Co. 9037070.89
Ltd.Xi’an Xinfeng
Property Trading 32840729.61
Co. Ltd.Subtotal 167761564.39
Total 220084700.95
Note: Other equity investments refer to equity of subsidiaries not brought into the consolidation
scope of the Company. As these subsidiaries have completed the revocation procedures but the
Company has not written off corresponding long-term equity investments or they ceased
operations many years ago and no longer physically exists the Company is no longer able to
exercise effective control over them. Please refer to section VI of notes to the financial statements
for details.
11. Other equity instrument investments
Increase/Decrease
Gains or losses
Items Opening balance Investments Investments included into other
Others
increased decreased comprehensive income
in the current period
Shantou SME
Financing 13839235.57 485175.78
Guarantee Co. Ltd.Beijing SPG
Property
Management Co.Ltd.Total 13839235.57 485175.78
(Continued)
Accumulated gains or
Dividend income
Closing losses included into other
Items recognized in the
balance comprehensive income
current period
at the end of the period
Shantou SME Financing
14324411.35537600.006035775.78
Guarantee Co. Ltd.Beijing SPG Property
Management Co. Ltd.Total 14324411.35 537600.00 6035775.78
127ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
12. Investment property
Buildings and
Items Land use right Total
structures
Cost
Opening balance 1044744895.39 107350053.05 1152094948.44
Increase 1820354.54 1820354.54
1) Acquisition
2) Others (exchange rate
1820354.541820354.54
changes)
Decrease
1) Disposal
2) Other transfer-out
Closing balance 1044744895.39 109170407.59 1153915302.98
Accumulated depreciation and
amortization
Opening balance 482985291.20 482985291.20
Increase 25658083.53 25658083.53
1) Accrual or amortization 25658083.53 25658083.53
2) Others (exchange rate
changes)
Decrease
1) Disposal
2) Other transfer-out
Closing balance 508643374.73 508643374.73
Provision for impairment
Opening balance 14128544.62 88107197.55 102235742.17
Increase 1494049.91 1494049.91
1) Accrual
2) Others (exchange rate
1494049.911494049.91
changes)
Decrease
1) Disposal
2) Other transfer-out
Closing balance 14128544.62 89601247.46 103729792.08
Carrying amount
Closing balance 521972976.04 19569160.13 541542136.17
Opening balance 547631059.57 19242855.50 566873915.07
128ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
13. Fixed assets
Electronic
Buildings and Transport
Items equipment and Total
structures facilities
others
Cost
Opening balance 100422074.10 8307455.41 7403998.70 116133528.21
Increase 377300.00 930351.56 1307651.56
1) Acquisition 377300.00 930351.56 1307651.56
2) Others
Decrease 1569625.80 250931.87 1820557.67
1) Disposal/
1569625.80250931.871820557.67
Scrapping
2) Others
Closing balance 100422074.10 7115129.61 8083418.39 115620622.10
Accumulated
depreciation
Opening balance 81649438.77 7111284.47 5947329.92 94708053.16
Increase 2166952.87 256900.46 340177.55 2764030.88
1) Accrual 2166952.87 256900.46 340177.55 2764030.88
2) Others
Decrease 1546753.88 232757.83 1779511.71
1) Disposal/
1546753.88232757.831779511.71
Scrapping
2) Others
Closing balance 83816391.64 5821431.05 6054749.64 95692572.33
Provision for
impairment
Opening balance
Increase
1) Accrual
2) Others
Decrease
1) Disposal/
Scrapping
2) Others
Closing balance
Carrying amount
Closing balance 16605682.46 1293698.56 2028668.75 19928049.77
Opening balance 18772635.33 1196170.94 1456668.78 21425475.05
129ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
14. Right-of-use assets
Items Buildings and structures Total
Cost
Opening balance 431779.61 431779.61
Increase
1) Leased in
Decrease
1) Disposal
Closing balance 431779.61 431779.61
Accumulated depreciation
Opening balance 199282.89 199282.89
Increase 132855.24 132855.24
1) Accrual 132855.24 132855.24
Decrease
1) Disposal
Closing balance 332138.13 332138.13
Provision for impairment
Opening balance
Increase
1) Accrual
Decrease
1) Disposal
Closing balance
Carrying amount
Closing balance 99641.48 99641.48
Opening balance 232496.72 232496.72
15. Intangible assets
Items Software Total
Cost
Opening balance 2192000.00 2192000.00
Increase
1) Acquisition
Decrease
1) Disposal
Closing balance 2192000.00 2192000.00
130ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Items Software Total
Accumulated amortization
Opening balance 2192000.00 2192000.00
Increase
1) Accrual
Decrease
1) Disposal
Closing balance 2192000.00 2192000.00
Provision for impairment
Opening balance
Increase
1) Accrual
Decrease
1) Disposal
Closing balance
Carrying amount
Closing balance
Opening balance
16. Long-term prepayments
Opening Other Closing
Items Increase Amortization
balance decreases balance
Renovation
1719057.99167760.44577677.491309140.94
costs
Others 457163.54 167998.92 289164.62
Total 2176221.53 167760.44 745676.41 1598305.56
17. Deferred tax assets and deferred tax liabilities
(1) Deferred tax assets before offset
Closing balance Opening balance
Items Deductible Deductible Deferred tax Deferred tax
temporary temporary
assets assets
difference difference
Provision for
16963840.114225272.5812026682.713006670.68
impairment of assets
Deductible losses 43152112.49 10788028.12 69038992.71 17259748.18
Land appreciation tax
2140368.96535092.24117245335.2629311333.82
accrued
Unrealized profit from
80397191.4020099297.8586124778.4121531194.60
internal transactions
Provisional cost of
2660481.88665120.4723711126.845927781.70
contracts
131ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Closing balance Opening balance
Items Deductible Deductible Deferred tax Deferred tax
temporary temporary
assets assets
difference difference
Total 145313994.84 36312811.26 308146915.93 77036728.98
(2) Deferred tax liabilities before offset
Closing balance Opening balance
Items Taxable Taxable Deferred tax Deferred tax
temporary temporary
liabilities liabilities
difference difference
Changes in fair value
of held-for-trading 7824348.72 1956087.18 8970031.50 2242507.88
financial assets
Undue interest 1901506.08 475376.52 1576125.00 394031.25
Changes in fair value
of other equity 2324411.36 581102.84 1839235.57 459808.89
instrument investments
Total 12050266.16 3012566.54 12385392.07 3096348.02
(3) Details of unrecognized deferred tax assets
Items Closing balance Opening balance
Deductible temporary difference 927951667.74 519864173.99
Deductible losses 68296307.42 54027120.82
Total 996247975.16 573891294.81
(4) Maturity years of deductible losses of unrecognized deferred tax assets
Maturity years Closing balance Opening balance Remarks
Year 2023 4085485.24
Year 2024 688456.49 688456.49
Year 2025 1629.25 1629.25
Year 2026 346891.06 346891.06
Year 2027 48904614.38 48904658.78
Year 2028 18354716.24
Total 68296307.42 54027120.82
132ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
18. Assets with title or use right restrictions
(1) Details
1) Details on assets with restrictions at the balance sheet date
Closing book Closing carrying Type of
Items Reasons for restrictions
balance amount restrictions
Construction funds for
urban renewal projects and
surrounding public facilities
Cash and bank projects in Longgang
5817217.78 5817217.78 Seized
balances District Shenzhen City;
land reclamation expenses
for Shenfang Guangming
Lane Project
Cash and bank
5943085.18 5943085.18 Frozen Frozen due to litigation
balances
Cash and bank
50000.00 50000.00 Seized Deposits for construction
balances
Payments have been
Cash and bank
62552.52 62552.52 Seized stopped and the account has
balances
been suspended.Pledged for short-term
Accounts receivable 27890361.58 27890361.58 Pledged
borrowings
Investment property 103165591.84 44297197.87 Mortgaged Mortgaged for borrowings
Total 142928808.90 84060414.93
2) Details on assets with restrictions at the beginning of the period
Opening book Opening Type of
Items Reasons for restrictions
balance carrying amount restrictions
Construction funds for
urban renewal projects and
Cash and bank
5674439.78 5674439.78 Seized surrounding public facilities
balances
projects in Longgang
District Shenzhen City
Cash and bank
48315.48 48315.48 Frozen Frozen due to litigation
balances
Pledged for short-term
Accounts receivable 51138077.62 51138077.62 Pledged
borrowings
Land mortgaged for project
Inventories 965000000.00 965000000.00 Mortgaged
development loans
Total 1021860832.88 1021860832.88
19. Short-term borrowings
Items Closing balance Opening balance
Factoring of accounts receivable 3550000.00 51138077.62
Total 3550000.00 51138077.62
20. Accounts payable
(1) Details
Items Closing balance Opening balance
Engineering funds 442529992.29 432902243.31
Others 729776.49 1699316.36
133ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Items Closing balance Opening balance
Total 443259768.78 434601559.67
(2) Significant accounts payable with age over one year
Items Closing balance Reasons for unsettlement
China Railway Second Bureau Group
104922084.43 Not yet settled
Co. Ltd.Huizhou Jinlongsheng Industry Co.
84950000.00 Not yet settled
Ltd.Huizhou Huiyang Hongfa Industry &
50350000.00 Not yet settled
Trade Co. Ltd.Huizhou Mingxiang Economic
41851375.00 Not yet settled
Information Consulting Co. Ltd.Guangzhou Mingji Construction Co.
12572856.16 Not yet settled
Ltd.Subtotal 294646315.59
21. Advances received
Items Closing balance Opening balance
Payments for goods of agency import
214630.004218370.69
and export business
Others 206094.30 1246973.27
Total 420724.30 5465343.96
22. Contract liabilities
(1) Details
Items Closing balance Opening balance
Payments for house sale received in
1290868600.7843431327.09
advance
Room charges received in advance 56197.55 102140.20
Payments for goods received in advance 351328.33
Engineering funds received in advance 172464.62
Total 1291448591.28 43533467.29
(2) Reasons for significant changes in the carrying amount of contract liabilities in the current
period
Items Amount of changes Reasons for changes
Pre-sale of Shenfang
Payments for house sale received in Guangming Lane Real
1247437273.69
advance Estate Project in the
current period
Subtotal 1247437273.69
134ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
(3) Receipts from significant projects of pre-sale real estate
Estimated Proportion of
Items Closing balance Opening balance
completion date pre-sales (%)
Shenfang At the end of
1247568338.5386.41
Guangming Lane 2024
Subtotal 1247568338.53
23. Employee benefits payable
(1) Details
Items Opening balance Increase Decrease Closing balance
Short-term employee benefits 35672352.37 62983861.06 76461955.28 22194258.15
Post-employment benefits - defined
51851.419560744.069559836.2652759.21
contribution plan
Total 35724203.78 72544605.12 86021791.54 22247017.36
(2) Details of short-term employee benefits
Items Opening balance Increase Decrease Closing balance
Wage bonus allowance and
35211378.7749975207.7563235706.5021950880.02
subsidy
Employee welfare fund 220742.00 2730234.83 2800976.83 150000.00
Social insurance premium 3654435.09 3654435.09
Including: Medicare premium 3376353.73 3376353.73
Occupational injuries
68212.9168212.91
premium
Maternity premium 209868.45 209868.45
Security fund for the
51939.7051939.70
disabled
Housing provident fund 5458412.13 5458412.13
Trade union fund and
240231.601113631.561260485.0393378.13
employee education fund
Subtotal 35672352.37 62983861.06 76461955.28 22194258.15
(3) Details of defined contribution plan
Items Opening balance Increase Decrease Closing balance
Basic endowment insurance
6002162.136002162.13
premium
Unemployment insurance
67304.4467304.44
premium
Company annuity payment 51851.41 3491277.49 3490369.69 52759.21
Subtotal 51851.41 9560744.06 9559836.26 52759.21
24. Taxes and rates payable
Items Closing balance Opening balance
VAT 6952681.57 3843704.80
Enterprise income tax 25379573.98 61927050.99
135ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Items Closing balance Opening balance
Individual income tax withheld for tax
666822.331611643.13
authorities
Urban maintenance and construction tax 1379662.47 734949.61
Land appreciation tax 4646137.48 121891472.74
Housing property tax 250796.18 287141.98
Education surcharge 592022.63 316008.58
Local education surcharge 382272.44 197568.44
Others 659017.40 141645.72
Total 40908986.48 190951185.99
25. Other payable
(1) Details
Items Closing balance Opening balance
Interest payable 16535277.94 16535277.94
Other payables 537933951.65 557796062.90
Total 554469229.59 574331340.84
(2) Interest payable
1) Details
Items Closing balance Opening balance
Interest of borrowings from non-financial
institutions (interest payable to parent 16535277.94 16535277.94
company)
Subtotal 16535277.94 16535277.94
2) Significant interest payable overdue but unpaid
Creditors Amount overdue Reasons for overdue
Shenzhen Investment Holdings Co. Ltd. 16535277.94 Not yet paid
Subtotal 16535277.94
(3) Other payables
1) Details
Items Closing balance Opening balance
Balances due to non-related parties 177620294.46 166065259.07
Balances due to related parties 234129312.99 232502015.42
Deposits 27861196.50 28723844.16
Others 98323147.70 130504944.25
Subtotal 537933951.65 557796062.90
136ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
2) Significant other payables with age over one year
Reasons for
Items Closing balance
unsettlement
Guangzhou Bopi Enterprise Management
206903717.13 Not yet settled
Consulting Co. Ltd.Huizhou Guirong Investment Information
102197564.38 Not yet settled
Consulting Co. Ltd.Huizhou Huiyang Hongfa Industry &
26894095.89 Not yet settled
Trade Co. Ltd.Huizhou Mingxiang Economic
26131960.68 Not yet settled
Information Consulting Co. Ltd.Subtotal 362127338.08
26. Non-current liabilities due within one year
Items Closing balance Opening balance
Long-term borrowings due within one
34001293.816105770.99
year
Lease liabilities due within one year 55054.12 83023.44
Total 34056347.93 6188794.43
27. Other current liabilities
Items Closing balance Opening balance
Output VAT to be recognized 115574168.18 2265817.68
Factoring of accounts receivable 20790361.58
Endorsed but undue notes not yet
1617000.00
derecognized
Total 136364529.76 3882817.68
28. Long-term borrowings
Items Closing balance Opening balance
Mortgaged borrowings 213433144.83 60366770.99
Less: Long-term borrowings due within
34001293.816105770.99
one year
Total 179431851.02 54261000.00
29. Lease liabilities
Items Closing balance Opening balance
Lease payments 55054.12 136908.67
Less: Lease liabilities due within one year 55054.12 83023.44
Total 53885.23
137ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
30. Share capital
Movements (less: decrease)
Items Opening balance Issue of Reserve Closing balance
Bonus
new transferred to Others Subtotal
shares
shares shares
Total 1011660000.00 1011660000.00
31. Capital reserve
Items Opening balance Increase Decrease Closing balance
Share/capital premium 557433036.93 557433036.93
Other capital reserve 420811873.18 420811873.18
Total 978244910.11 978244910.11
32. Other comprehensive income (OCI)
Current period cumulative
Less: OCI
Net OCI after tax
previously
recognized but
Opening Less: OCI transferred to
Items
balance previously
Closing balance
Current period Attributable retained
recognized but Attributable to
cumulative Less: Income to non- earnings in the
transferred to parent
before income tax expenses controlling current period
profit or loss in company
tax shareholders (attributable to
the current parent company
period
after tax)
Items not to be
reclassified
1379426.681040114.76260028.69780086.072159512.75
subsequently to
profit or loss
Including:
Remeasurements
of the defined
benefit plan
OCI not to be
transferred to
profit or loss under
equity method
Changes in fair
value of other
1379426.681040114.76260028.69780086.072159512.75
equity instrument
investments
Changes in fair
value of the
Company’s own
credit risk
Items to be
reclassified
24547294.17-1803551.72-1387347.48-416204.2423159946.69
subsequently to
profit or loss
Including: OCI to
be transferred to
profit or loss under
equity method
Changes in fair
value of other
debt investments
OCI arising from
financial assets
reclassification
Provision for
credit impairment
loss of other debt
investments
Cash flow
hedging reserves
138ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Current period cumulative
Less: OCI
Net OCI after tax
previously
recognized but
Opening Less: OCI transferred to
Items previously Closing balance balance Current period Attributable retained
recognized but Attributable to
cumulative Less: Income to non- earnings in the
transferred to parent
before income tax expenses controlling current period
profit or loss in company
tax shareholders (attributable to
the current
parent company
period
after tax)
Translation
24547294.17-1803551.72-1387347.48-416204.2423159946.69
reserves
Total 25926720.85 -763436.96 260028.69 -607261.41 -416204.24 25319459.44
33. Surplus reserve
Items Opening balance Increase Decrease Closing balance
Statutory surplus
275253729.26275253729.26
reserve
Total 275253729.26 275253729.26
34. Undistributed profit
Current period Preceding period
Items
cumulative comparative
Balance before adjustment at the end of
1713155187.481671121562.98
preceding period
Add: Increase due to adjustment (or less:
decrease)
Opening balance after adjustment 1713155187.48 1671121562.98
Add: Net profit attributable to owners of the
-250839542.09153718805.57
parent company
Less: Appropriation of statutory surplus reserve 34108874.33
Dividend payable on ordinary shares 61711260.00 89026080.00
Others -11449773.26
Closing balance 1400604385.39 1713155187.48
(II) Notes to items of the consolidated income statement
1. Operating revenue/Operating cost
(1) Details
Current period cumulative Preceding period comparative
Items
Revenue Cost Revenue Cost
Main operations 524099615.63 442138382.34 628832520.51 434304905.37
Other operations 6788105.05 2659259.76 5552040.91 2747095.64
Total 530887720.68 444797642.10 634384561.42 437052001.01
Including: Revenue
from contracts with 446315732.01 399950397.80 580082259.25 392766924.25
customers
139ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
(2) Breakdown of revenue
1) Breakdown of revenue from contracts with customers by goods or services
Current period cumulative Preceding period comparative
Items
Revenue Cost Revenue Cost
Real estates 118580624.34 80235849.12 309331841.57 141232452.52
Engineering and
324243778.50317088117.19236949097.45231754203.03
construction
Property management 3491329.17 2626431.49 33801320.23 19780268.70
Subtotal 446315732.01 399950397.80 580082259.25 392766924.25
2) Breakdown of revenue from contracts with customers by operating regions
Current period cumulative Preceding period comparative
Items
Revenue Cost Revenue Cost
Guangdong Province 445625466.90 399950397.80 579604607.63 392766924.25
The United States 690265.11 477651.62
Subtotal 446315732.01 399950397.80 580082259.25 392766924.25
3) Breakdown of revenue from contracts with customers by time of transferring goods or
rendering services
Items Current period cumulative Preceding period comparative
Recognized at a point in time 118580624.34 309331841.57
Recognized over time 327735107.67 270750417.68
Subtotal 446315732.01 580082259.25
2. Taxes and surcharges
Items Current period cumulative Preceding period comparative
Land appreciation tax 59631025.69 68994085.35
Housing Property tax 5921317.90 7527796.10
Urban maintenance and
2033111.821984035.04
construction tax
Education surcharge 805738.62 845915.69
Local education surcharge 603255.93 563479.01
Land use tax 1078003.07 987303.57
Stamp duty and other taxes 927479.33 880876.78
Total 70999932.36 81783491.54
140ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
3. Selling expenses
Items Current period cumulative Preceding period comparative
Sales agency fees and
6411581.449153738.82
commissions
Employee benefits 3456886.44 3840229.00
Property management fees 2885601.45
Business expenses 399643.39 1381173.87
Advertising costs 8162439.28 4350998.80
Others 487050.14 491454.62
Total 21803202.14 19217595.11
4. Administrative expenses
Items Current period cumulative Preceding period comparative
Employee benefits 41241958.09 39755710.03
Agency fees 2496191.21 2752109.58
Business entertainment fees 1705735.91 2425452.83
Depreciation 2558956.30 2785592.23
Office expenses 1600402.92 1849010.18
Repairing costs 390746.46 336048.95
Business travelling expenses 463694.27 520782.12
Other amortizations 399870.13 481562.84
Utilities 347076.86 359004.64
Others 4761299.57 4493475.68
Total 55965931.72 55758749.08
5. Financial expenses
Items Current period cumulative Preceding period comparative
Interest expenses 1258720.92
Including: Bank loans 1258720.92
Less: Interest income 4804313.09 5315817.53
Including: Deposits in
4804313.095315817.53
financial institutions
Gains and losses on foreign
-1846042.29-1384499.52
exchange
Handling fees 159642.87 193170.02
Total -5231991.59 -6507147.03
141ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
6. Other income
Current period Preceding period Amount included in non-
Items
cumulative comparative recurring profit or loss
Government grants
440049.96266152.38440049.96
related to income
Refund of handling
fees for withholding
68364.83225814.59
individual income
tax
VAT extra
58857.6067836.22
deductions
Total 567272.39 559803.19 440049.96
7. Investment income
Current period Preceding period
Items
cumulative comparative
Investment income from long-term
equity investments under equity -93927.64 -178240.64
method
Investment income from disposal of
9941254.23161581081.50
long-term equity investments
Investment income from held-for-
161491.79159619.01
trading financial assets
Dividend income from other equity
537600.00813960.00
instrument investments
Investment income from debt
2610128.30
restructuring
Total 10546418.38 164986548.17
8. Gains on changes in fair value
Current period Preceding period
Items
cumulative comparative
Held-for-trading financial assets 7824348.71 8970031.50
Including: Gains on changes in fair
value of derivative financial
instruments
Gains on changes in fair value
of financial assets designated as
7824348.718970031.50
at fair value through profit or
loss
Total 7824348.71 8970031.50
9. Credit impairment loss
Current period Preceding period
Items
cumulative comparative
Bad debts on accounts receivable -439750.78 -3434265.84
Bad debts on other receivables 938414.80 -5865350.35
Bad debts on notes receivable 80850.00 2783378.85
Total 579514.02 -6516237.34
142ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
10. Assets impairment loss
Current period Preceding period
Items
cumulative comparative
Inventory write-down loss -391731506.81 -532397.57
Impairment loss of contract assets -845956.61
Total -392577463.42 -532397.57
11. Gains on asset disposal
Amount included in
Current period Preceding period
Items non-recurring profit or
cumulative comparative
loss
Gains on disposal of
-1000.00-1000.00
fixed assets
Total -1000.00 -1000.00
12. Non-operating revenue
Amount included in
Current period Preceding period
Items non-recurring profit or
cumulative comparative
loss
Gains on damage or
retirement of non-current 1269.60 1269.60
assets
Exempted payments 362451.86 1156843.63 362451.86
Fines default income 4000.00 370000.00 4000.00
Others 18704.07 7807.75 18704.07
Total 386425.53 1534651.38 386425.53
13. Non-operating expenditures
Amount included in
Current period Preceding period
Items non-recurring profit or
cumulative comparative
loss
Donation expenditures 30000.00 306474.53 30000.00
Losses on damage or
retirement of non-current 18906.04 38481.92 18906.04
assets
Compensation costs 96000.00 96000.00
Overdue fines and
302110.62302110.62
penalties
Others 83547.43 133986.29 83547.43
Total 530564.09 478942.74 530564.09
143ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
14. Income tax expenses
(1) Details
Items Current period cumulative Preceding period comparative
Current period income tax
-23506729.22-20528623.91
expenses
Deferred income tax expenses 40518842.29 86555081.26
Total 17012113.07 66026457.35
(2) Reconciliation of accounting profit to income tax expenses
Current period Preceding period
Items
cumulative comparative
Profit before tax -430652044.53 215603328.30
Income tax expenses based on tax rate
-107663011.1353900832.08
applicable to the parent company
Effect of different tax rate applicable to
472597.65148585.06
subsidiaries
Effect of prior income tax reconciliation 2575454.03 -6828454.83
Effect of non-taxable income -4485954.26 -187757.40
Effect of non-deductible costs expenses and
651725.02621871.15
losses
Effect of utilization of deductible losses not
-155580.87-598646.13
previously recognized as deferred tax assets
Effect of deducible temporary differences or
deductible losses not recognized as deferred 125616882.63 18970027.42
tax assets in the current period
Income tax expenses 17012113.07 66026457.35
15. Other comprehensive income net of income tax
Please refer to section V (I) 32 of notes to the financial statements for details.(III) Notes to items of the consolidated cash flow statement
1. Cash receipts or payments related to significant investing activities
(1) Cash receipts from investment income
Items Current period cumulative Preceding period comparative
Dividend income from other
537600.0010527896.61
equity instrument investments
Investment income from held-
161491.79
for-trading financial assets
Subtotal 699091.79 10527896.61
(2) Net cash receipts from the disposal of fixed assets intangible assets and other long-term assets
Items Current period cumulative Preceding period comparative
Disposal of long-term assets 29475.62 2907.50
Subtotal 29475.62 2907.50
144ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
(3) Net cash receipts from the disposal of subsidiaries & other business units
Current period Preceding period
Items
cumulative comparative
Cash and cash equivalents received in the current
214862911.00
period for subsidiary disposal in the current period
Including: Shenzhen Property Management Co.
196676700.00
Ltd.Less: Cash and cash equivalents held by subsidiaries
57467430.10
at the loss-of-control date
Including: Shenzhen Property Management Co.
57467430.10
Ltd.Add: Cash and cash equivalents received in the
current period for subsidiary disposal in prior 1644822.69
periods
Including: Shenzhen Property Management Co.
1644822.69
Ltd.Net cash receipts from disposal of subsidiaries in the
1644822.69157395480.90
current period
(4) Cash payments for the acquisition of fixed assets intangible assets and other long-term assets
Items Current period cumulative Preceding period comparative
Acquisition of fixed assets 1475412.00 713537.29
Subtotal 1475412.00 713537.29
2. Other cash receipts or payments related to operating activities investing activities and financing
activities
(1) Other cash receipts related to operating activities
Items Current period cumulative Preceding period comparative
Interest income 4804313.09 5315817.53
Intercompany balances and
51500509.5819283483.81
others
Total 56304822.67 24599301.34
(2) Other cash payments related to operating activities
Items Current period cumulative Preceding period comparative
Handling fees 156436.95 192970.02
Out-of-pocket expenses 27059079.63 28511217.46
Intercompany balances and
50615881.3044617346.03
others
Total 77831397.88 73321533.51
(3) Other cash receipts related to investing activities
Items Current period cumulative Preceding period comparative
Fund management products 136800000.00 114840380.99
Total 136800000.00 114840380.99
145ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
(4) Other cash payments related to investing activities
Items Current period cumulative Preceding period comparative
Fund management products 600000000.00
Total 600000000.00
3. Supplementary information to the cash flow statement
Current period Preceding period
Supplementary information
cumulative comparative
(1) Reconciliation of net profit to cash flows from operating
activities:
Net profit -447664157.60 149576870.95
Add: Provision for assets impairment 391997949.40 7048634.91
Depreciation of fixed assets oil and gas assets
28422114.4128470523.13
productive biological assets
Depreciation of right-of-use assets 132855.24 132855.25
Amortization of intangible assets
Amortization of long-term prepayments 745676.41 716814.19
Losses on disposal of fixed assets intangible assets
1000.00
and other long-term assets (Less: gains)
Fixed assets retirement loss (Less: gains) 17636.44 38481.92
Losses on changes in fair value (Less: gains) -7824348.71 -8970031.50
Financial expenses (Less: gains) 1258720.92 492336.21
Investment losses (Less: gains) -10546418.38 -164986548.17
Decrease of deferred tax assets (Less: increase) 40723917.72 92983372.80
Increase of deferred tax liabilities (Less: decrease) -205075.43 -6428291.54
Decrease of inventories (Less: increase) -49837814.46 -222176051.69
Decrease of operating receivables (Less: increase) -104577562.13 -15439705.92
Increase of operating payables (Less: decrease) 1202392754.36 -537235259.30
Others
Net cash flows from operating activities 1045037248.19 -675775998.76
(2) Significant investing and financing activities not related
to cash receipts and payments:
Conversion of debt into capital
Convertible bonds due within one year
Fixed assets leased in under finance leases
(3) Net changes in cash and cash equivalents:
Cash at the end of the period 859146413.35 190365069.48
Less: Cash at the beginning of the period 190365069.48 612293635.15
Add: Cash equivalents at the end of the period
Less: Cash equivalents at the beginning of the period
146ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Current period Preceding period
Supplementary information
cumulative comparative
Net increase of cash and cash equivalents 668781343.87 -421928565.67
4. Composition of cash and cash equivalents
(1) Details
Items Closing balance Opening balance
1) Cash 859146413.35 190365069.48
Including: Cash on hand 18414.04 4549.61
Cash in bank on demand for payment 829127999.31 157360519.87
Other cash and bank balances on demand for
30000000.0033000000.00
payment
Central bank deposit on demand for payment
Deposit in other banks
Loans to other banks
2) Cash equivalents
Including: Bond investments maturing within three
months
3) Cash and cash equivalents at the end of the period 859146413.35 190365069.48
Including: Cash and cash equivalents of parent
company or subsidiaries with use restrictions
(2) Cash and cash equivalents with use restrictions
Reasons for use restrictions and for considered
Items Closing balance Opening balance
as cash and cash equivalents
Construction funds for urban renewal projects
Cash and bank
5817217.78 5674439.78 and surrounding public facilities projects in
balances
Longgang District Shenzhen City
Cash and bank
5943085.18 48315.48 Frozen due to litigation
balances
Cash and bank
50000.00 Deposits for construction
balances
Cash and bank Payments have been stopped and the account
62552.52
balances has been suspended.Subtotal 11872855.48 5722755.26
5. Changes in liabilities related to financing activities
Increase Decrease
Items Opening balance Closing balance
Changes in non- Changes in non-
Changes in cash Changes in cash
cash cash
Short-term
51138077.6247588077.623550000.00
borrowings
Long-term
borrowings
(including long-
60366770.99169486610.8234001293.8116781586.6033639944.19213433144.83
term borrowings
due within one
year)
Lease liabilities
(including lease 136908.67 55054.12 89555.32 47353.35 55054.12
liabilities due
147ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Increase Decrease
Items Opening balance Closing balance
Changes in non- Changes in non-
Changes in cash Changes in cash
cash cash
within one year)
Subtotal 111641757.28 169486610.82 34056347.93 16871141.92 81275375.16 217038198.95
(Ⅳ) Others
1. Monetary items in foreign currencies
Closing balance in RMB equivalent at
Items Exchange rate
foreign currencies the end of the period
Cash and bank balances 5325942.57
Including: USD 24472.95 7.0827 173334.56
HKD 5685824.65 0.90622 5152608.01
Accounts receivable 233729.10
Including: USD 33000.00 7.0827 233729.10
Other receivables 18140929.57
Including: HKD 20018240.13 0.90622 18140929.57
Other payables 8531588.80
Including: USD 722044.70 7.0827 5114026.00
HKD 3771228.62 0.90622 3417562.80
2. Leases
(1) The Company as lessee
1) Please refer to section V (I) 14 of notes to the financial statements for details on right-of-use
assets.
2) Please refer to section III (XXX) of notes to the financial statements for details on the
Company’s accounting policies on short-term leases and leases for which the underlying asset is of
low value. The amounts of short-term leases and low-value asset leases included into profit or loss
are as follows:
Items Current period cumulative Preceding period comparative
Expense relating to short-term
1001337.95443919.05
leases
Total 1001337.95 443919.05
3) Profit or loss and cash flows related to leases
Items Current period cumulative Preceding period comparative
Interest expenses on lease
6548.0910987.90
liabilities
Total cash outflows related to
1142112.85556823.00
leases
4) Please refer to section Ⅷ (II) of notes to the financial statements for details on maturity
148ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
analysis of lease liabilities and related liquidity risk management.
(2) The Company as lessor
1) Operating lease
a. Lease income
Items Current period cumulative Preceding period comparative
Lease income 60531148.28 46657985.12
Including: Income relating to
variable lease payments not
included in the measurement of
the lease liabilities
b. Assets leased out under operating leases
Items Closing balance December 31 2022
Investment property 541542136.17 566873915.07
Subtotal 541542136.17 566873915.07
c. Undiscounted lease payments to be received arising from non-cancellable leases based on the
lease contract signed with lessee
Remaining years Closing balance December 31 2022
Within 1 year 56542470.24 61340377.67
1-2 years 52190140.08 56542470.24
2-3 years 33173087.70 52190140.08
3-4 years 18585822.03 33173087.70
4-5 years 10612435.91 18585822.03
Over 5 years 17600507.53 10612435.91
Total 188704463.49 232444333.63
VI. Interest in other entities
(I) Composition of the consolidation scope
1. The Company has brought 13 subsidiaries including Shenzhen SPG Longgang Development
Co. Ltd. and Great Wall Estate Company Inc. into the consolidation scope.
2. Basic information of significant subsidiaries
Holding proportion
Registered Main operating
(%) Acquisition
Subsidiaries capital (in ten place and place Business nature
method
thousand yuan) of registration Direct Indirect
Shenzhen SPG
Longgang 3000.00 Shenzhen Real estate 95.00 5.00 Establishment
Development Co. Ltd.Great Wall Estate
USD 500000 U.S. Real estate 70.00 Establishment
Company Inc.Shenzhen Petrel Hotel
3000.00 Shenzhen Hotel services 68.10 31.90 Establishment
Co. Ltd.Shenzhen Zhentong 1000.00 Shenzhen Construction 73.00 27.00 Establishment
149ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Holding proportion
Registered Main operating
(%) Acquisition
Subsidiaries capital (in ten place and place Business nature
method
thousand yuan) of registration Direct Indirect
Engineering Co. Ltd.Shenzhen Huazhan
Construction 800.00 Shenzhen Construction 75.00 25.00 Establishment
Supervision Co. Ltd.Shenzhen Lianhua
1000.00 Shenzhen Construction 95.00 5.00 Establishment
Enterprise Co. Ltd.Xinfeng Real Estate Hong Kong Investment and
100.00 Establishment
Co. Ltd. SAR management
Xinfeng Enterprise Hong Kong Investment and
TWD 5.00 million 100.00 Establishment
Co. Ltd. SAR management
Shenzhen SPG Free Import and
500.00 Shenzhen 95.00 5.00 Establishment
Trading Co. Ltd. export trade
Shenzhen SPG
1000.00 Shenzhen Investment 90.00 10.00 Establishment
Investment Co. Ltd.Beijing Xinfeng Real
Estate Management & USD 10.00 million Beijing Real estate 75.00 25.00 Establishment
Development Co. Ltd.Business
Guangdong Jianbang combination
Group (Huiyang) 280.00 Huizhou Real estate 51.00 not under
Industrial Co. Ltd. common
control
Shenzhen SPG
Chuanqi Real Estate 3000.00 Shenzhen Real estate 100.00 Establishment
Development Co. Ltd.
(2) Other remarks
The Company has brought the following 3 subsidiaries which have been suspended for a long time
and whose business license has been revoked but not cancelled into the consolidation scope:
Guangzhou Huangpu Xincun Real Estate Development Co. Ltd. Xinfeng Real Estate
Development and Construction (Wuhan) Co. Ltd. and Beijing Xinfeng Real Estate Development
& Management Co. Ltd. The above subsidiaries have been presented as discontinued operations
with full provision for impairment on their creditor’s right to debtors beyond the consolidation
scope of the Company.(Ⅱ) Changes in the consolidation scope due to other reasons
Entities excluded from the consolidation scope
Net profit from the
Equity disposal Equity Disposal-date
Entities period beginning to
method disposal date net assets
the disposal date
Beijing SPG Property January 1
Loss of control -8121334.67
Management Co. Ltd. 2023
150ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
(III) Significant not wholly-owned subsidiaries
1. Details
Holding
Non-controlling Dividend declared Closing balance of
proportion of
Subsidiaries shareholders’ profit to non-controlling non-controlling
non-controlling
or loss shareholders interest
shareholders
Great Wall Estate
30.00%-105324.87-22809939.62
Company Inc.Xinfeng Investment
45.00%5.09-116179868.81
Co. Ltd.Baiwei Real Estate
20.00%3.03-3892111.41
Co. Ltd.Guangdong
Jianbang Group
49.00%-196719298.76227942330.06
(Huiyang)
Industrial Co. Ltd.
2. Main financial information of significant not wholly-owned subsidiaries
(1) Assets and liabilities
Closing balance
Subsidiaries
Non-current Non-current
Current assets Total assets Current liabilities Total liabilities
assets liabilities
Great Wall Estate
395377.2019569160.1319964537.33111791851.06111791851.06
Company Inc.Xinfeng Investment
69786.7136016.90105803.61258283372.85258283372.85
Co. Ltd.Baiwei Real Estate
1061.181061.1832920988.9132920988.91
Co. Ltd.Guangdong Jianbang
Group (Huiyang) 1525466547.38 7070465.17 1532537012.55 1557970018.20 1557970018.20
Industrial Co. Ltd.
(Continued)
Opening balance
Subsidiaries
Non-current Non-current
Current assets Total assets Current liabilities Total liabilities
assets liabilities
Great Wall Estate
157276.1319242855.5019400131.63109489015.64109489015.64
Company Inc.Xinfeng Investment
4814.1236016.9040831.02258218411.56258218411.56
Co. Ltd.Baiwei Real Estate
1046.021046.0232920988.9132920988.91
Co. Ltd.Guangdong Jianbang
Group (Huiyang) 1480299811.47 5502260.78 1485802072.25 1501444742.85 53885.23 1501498628.08
Industrial Co. Ltd.
(2) Profit or loss and cash flows
Current period cumulative
Subsidiaries
Operating Total comprehensive Cash flows from
Net profit
revenue income operating activities
Great Wall Estate Company
690265.11-351082.24-1738429.7210516.97
Inc.Xinfeng Investment Co. Ltd. 11.30 11.30
Baiwei Real Estate Co. Ltd. 15.16 15.16
151ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Current period cumulative
Subsidiaries
Operating Total comprehensive Cash flows from
Net profit
revenue income operating activities
Guangdong Jianbang Group
-9736449.82-9736449.82-26899080.84
(Huiyang) Industrial Co. Ltd.
(Continued)
Preceding period comparative
Subsidiaries
Operating Total comprehensive Cash flows from
Net profit
revenue income operating activities
Great Wall Estate Company
477651.62-431973.10-431973.10-384413.25
Inc.Xinfeng Investment Co. Ltd. 1141.56 1141.56
Baiwei Real Estate Co. Ltd. -12025.38 -12025.38
Guangdong Jianbang Group
-8184594.48-8184594.48-161865625.76
(Huiyang) Industrial Co. Ltd.(Ⅳ) Interest in joint ventures or associates
1. Aggregated financial information of insignificant joint ventures and associates
Closing balance/Current Opening balance/Preceding
Items
period cumulative period comparative
Joint ventures
Total carrying amount of investments
Proportionate shares in the following
items
Net profit
Other comprehensive income
Total comprehensive income
Associates
Total carrying amount of investments 93927.67
Proportionate shares in the following
items
Net profit -93927.67 -178240.64
Other comprehensive income
Total comprehensive income -93927.67 -178240.64
2. Excess losses incurred by joint ventures or associates
Unrecognized losses in
Accumulated
Joint ventures or the current period (net Unrecognized losses at
unrecognized losses in
associates profit shared in the the balance sheet date
prior periods
current period)
Shenzhen Xinfeng
Real Estate 2217955.89 2217955.89
Consulting Co. Ltd.
152ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
VII. Government grants
(Ⅰ) Government grants increased in the current period
Items Amount
Government grants related to income 440049.96
Including: Included into other income 440049.96
Total 440049.96
(II) Government grants included into profit or loss
Items Current period cumulative Preceding period comparative
Government grants included into
440049.96266152.38
other income
Total 440049.96 266152.38
VIII. Risks related to financial instruments
In risk management the Company aims to seek the appropriate balance between the risks and
benefits from its use of financial instruments and to mitigate the adverse effects that the risks of
financial instruments have on the Company’s financial performance so as to maximize the profits
of shareholders and other equity investors. Based on such risk management objectives the
Company’s risk management policies are established to identify and analyze the risks faced by the
Company to set appropriate risk limits and controls and to monitor risks and adherence to limits
on a timely and reliable basis.The Company has exposure to the following risks from its use of financial instruments which
mainly include: credit risk liquidity risk and market risk. The Management has deliberated and
approved policies concerning such risks and details are:
(I) Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the
other party by failing to discharge an obligation.
1. Credit risk management practice
(1) Evaluation method of credit risk
At each balance sheet date the Company assesses whether the credit risk on a financial instrument
has increased significantly since initial recognition. When assessing whether the credit risk has
increased significantly since initial recognition the Company takes into account reasonable and
supportable information which is available without undue cost or effort including qualitative and
quantitative analysis based on historical data external credit risk rating and forward-looking
information. The Company determines the changes in default risk of financial instruments during
the estimated lifetime through comparison of the default risk at the balance sheet date and the
initial recognition date on an individual basis or a collective basis.The Company considers the credit risk on a financial instrument has increased significantly when
153ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
one or more of the following qualitative and quantitative standards are met:
1) Quantitative standard mainly relates to the scenario in which at the balance sheet date the
probability of default in the remaining lifetime has risen by more than a certain percentage
compared with the initial recognition;
2) Qualitative standard mainly relates to significant adverse changes in the debtor’s operation or
financial position present or expected changes in technology market economy or legal
environment that will have significant adverse impact on the debtor’s repayment ability;
(2) Definition of default and credit-impaired assets
A financial instrument is defined as defaulted when one or more following events have occurred
of which the standard is consistent with that for credit-impairment:
1) significant financial difficulty of the debtor;
2) a breach of binding clause of contract;
3) it is very likely that the debtor will enter bankruptcy or other financial reorganization;
4) the creditor of the debtor for economic or contractual reasons relating to the debtor’s financial
difficulty having granted to the debtor a concession(s) that the creditor would not otherwise
consider.
2. Measurement of expected credit losses
The key factors in the measurement of expected credit loss include the probability of default loss
given default and exposure to default risk. The Company develops a model of the probability of
default loss given default and exposure to default risk on the basis of quantitative analysis of
historical data (e.g. counterparty rating guarantee measures and collateral type payment method
etc.) and forward-looking information.
3. Please refer to section V (I) 3 4 6 and 8 of notes to the financial statements for details on the
reconciliation table of opening balance and closing balance of provision for losses of financial
instrument.
4. Exposure to credit risk and concentration of credit risk
The Company’s credit risk is primarily attributable to cash and bank balances and receivables. In
order to control such risks the Company has taken the following measures:
(1) Cash and bank balances
The Company deposits its bank balances and other cash and bank balances in financial institutions
with relatively high credit levels hence its credit risk is relatively low.
(2) Receivables and contract assets
The Company performs credit assessment on customers using credit settlement on a regular basis.The Company selects credible and well-reputed customers based on credit assessment result and
154ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
conducts ongoing monitoring on balance of receivables to avoid significant risks in bad debts.As the Company’s credit risks fall into several business partners and customers the Company
manages credit risk aggregated by customers. As of December 31 2023 the Company has certain
concentration of credit risk and 36.46% (December 31 2022: 55.65%) of the total accounts
receivable and contract assets was due from the five largest customers of the Company. The
Company held no collateral or other credit enhancement on balance of receivables or contract
assets.The maximum amount of exposure to credit risk of the Company is the carrying amount of each
financial asset at the balance sheet.(II) Liquidity risk
Liquidity risk is the risk that the Company may encounter deficiency of funds in meeting
obligations associated with cash or other financial assets settlement which is possibly attributable
to failure in selling financial assets at fair value on a timely basis or failure in collecting liabilities
from counterparties of contracts or early redemption of debts or failure in achieving estimated
cash flows.In order to control such risk the Company comprehensively utilizes financing tools such as notes
settlement bank borrowings etc. and adopts long-term and short-term financing methods to
optimize financing structures and finally maintains a balance between financing sustainability and
flexibility. The Company has obtained credit limit from several commercial banks to meet
working capital requirements and expenditures.
1. Financial liabilities classified based on remaining time period till maturity
Closing balance
Items
Contract amount not
Carrying amount Within 1 year 1-3 years Over 3 years
yet discounted
Short-term
3550000.003683125.003683125.00
borrowings
Accounts
443259768.78443259768.78443259768.78
payable
Other
554469229.59554469229.59554469229.59
payables
Non-current
liabilities due 34056347.93 41741101.03 41741101.03
within one year
Other current
20790361.5820790361.5820790361.58
liabilities
Long-term
179431851.02187773026.94122834289.8064938737.14
borrowings
Subtotal 1235557558.90 1251716612.92 1063943585.98 122834289.80 64938737.14
155ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
(Continued)
December 31 2022
Items
Contract amount not
Carrying amount Within 1 year 1-3 years Over 3 years
yet discounted
Short-term
51138077.6253055755.5353055755.53
borrowings
Accounts
434601559.67434601559.67434601559.67
payable
Other
574331340.84574331340.84574331340.84
payables
Non-current
liabilities due 6188794.43 8693727.50 8693727.50
within one year
Long-term
54261000.0056719813.1156719813.11
borrowings
Lease liabilities 53885.23 53885.23 53885.23
Subtotal 1120574657.79 1127456081.88 1070736268.77 56719813.11
(III) Market risk
Market risk is the risk that the Company may encounter fluctuation in fair value or future cash
flows of financial instruments due to changes in market price. Market risk mainly includes interest
risk and foreign currency risk.
1. Interest risk
Interest risk is the risk that an enterprise may encounter fluctuation in fair value or future cash
flows of financial instruments due to changes in market interest rates. The Company’s fair value
interest risks arise from fixed-rate financial instruments while the cash flow interest risks arise
from floating-rate financial instruments. The Company determines the proportion of fixed-rate
financial instruments and floating-rate financial instruments based on the market environment and
maintains a proper financial instruments portfolio through regular review and monitoring. The
Company’s interest risk in cash flows relates mainly to bank borrowings with floating interest rate.As of December 31 2023 balance of borrowings with interest accrued at floating interest rate
totaled 62398851.02 yuan (December 31 2022: 0 yuan). If interest rates had been 50 basis points
higher/lower and all other variables were held constant the Company’s gross profit and equity will
not be significantly affected.
2. Foreign currency risk
Foreign currency risk is the risk arising from changes in fair value or future cash flows of financial
instrument resulted from changes in exchange rate. The Company’s foreign currency risk relates
mainly to foreign currency monetary assets and liabilities. When short-term imbalance occurred to
foreign currency assets and liabilities the Company may trade foreign currency at market
exchange rate when necessary in order to maintain the net risk exposure within an acceptable
level.The exchange rate risk mainly refers to the impact of foreign exchange rate fluctuations on the
financial condition and cash flow of the Company. Except for subsidiaries established in Hong
156ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Kong SAR that hold assets denominated in Hong Kong dollars the Company only engages in
small-scale Hong Kong market investment business. The proportion of foreign currency assets and
liabilities held by the Company to the overall assets and liabilities is insignificant hence the
Company considers that the exposure to exchange rate risk is not material.Please refer to section V (IV) 1 of notes to the financial statements for details on foreign currency
financial assets and liabilities at the end of the period.IX. Fair value disclosure
(I) Details of fair value of assets and liabilities at fair value at the balance sheet date
Fair value as at the balance sheet date
Items Level 2 fair Level 3
Level 1 fair value
value fair value Total
measurement
measurement measurement
Recurring fair value measurement
1. Held-for-trading financial
assets and other non-current 879340201.92 879340201.92
financial assets
(1) Financial assets classified as
at fair value through profit or
loss
Fund management 879340201.92 879340201.92
(2) Financial assets designated
as at fair value through profit or
loss
Debt instrument
investments
2. Other equity instrument
14324411.3514324411.35
investments
Total assets at recurring fair value
879340201.9214324411.35893664613.27
measurement
(II) Basis for determining level 1 fair value at recurring and non-recurring fair value measurement
Held-for-trading financial assets of the Company are fund management products purchased from
China Construction Bank Co. Ltd. and the Company can obtain unadjusted quotes for the same
assets in active markets on the balance sheet date.(III) Qualitative and quantitative information of valuation technique(s) and key input(s) for level 2
fair value at recurring and non-recurring fair value measurement
None.(IV) Qualitative and quantitative information of valuation technique(s) and key input(s) for level 3
fair value at recurring and non-recurring fair value measurement
For receivables financing not traded in active markets the remaining maturity is short and the
carrying amount is similar to the fair value so the carrying amount is adopted as its fair value. For
other equity instrument investments not traded in active markets the investment amount is small
and there is little change in the net assets of the investees and the carrying amount is similar to the
fair value so the carrying amount is adopted as its fair value.
157ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
(V) Items for level 3 recurring fair value measurement a reconciliation from the opening balances
to the closing balances and sensitive analysis on unobservable inputs
None.(VI) Items at recurring fair value measurement with inter-level transfer and reasons and policies
for determining inter-level transfer time
None.(VII) Changes in valuation techniques in the current period and reasons for changes
None.(VIII) Fair value of financial assets and liabilities not at fair value
The Company’s financial assets and liabilities measured at amortized costs mainly include: cash
and bank balances notes receivable accounts receivable other receivables short-term borrowings
accounts payable other payables long-term borrowings lease liabilities etc.The difference between the carrying amount and fair value of financial assets and liabilities not
measured at fair value is very small.X. Related party relationships and transactions
(I) Related party relationships
1. Parent company
(1) Details
Registered Holding Voting right
capital proportion proportion
Parent Place of
Business nature (in ten over the over the
company registration
thousand Company Company
yuan) (%) (%)
Investment real
Shenzhen
Shenzhen estate
Investment 3235900.00 55.78 55.78
Guangdong development
Holdings Co. Ltd.guarantee
(2) The Company’s ultimate controlling party is the State-owned Assets Supervision and
Management Commission of the of Shenzhen Municipal People’s Government.
2. Please refer to section VI of notes to the financial statements for details on the Company’s
subsidiaries.
3. Joint ventures and associates of the Company
(1) Joint ventures and associates of the Company
Please refer to section VI of notes to the financial statements for details on the Company’s
significant joint ventures and associates.
4. Other related parties of the Company
158ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Related parties Relationships with the Company
Shenzhen Jian’an (Group) Co. Ltd. Controlling subsidiary of the parent company
Shenzhen Oriental New World Department
Investee
Store Co. Ltd.Revoked but not canceled controlling
Shenzhen Shenxi Building Decoration Co. Ltd. subsidiary not brought into the consolidation
scope
Shenzhen Zhentong New Electromechanical Long-term discontinued controlling subsidiary
Industrial Development Co. Ltd. not brought into the consolidation scope
Revoked but not canceled controlling
Shenzhen Nanyang Hotel Co. Ltd. subsidiary not brought into the consolidation
scope
Revoked but not canceled controlling
Shenzhen Real Estate Electromechanical
subsidiary not brought into the consolidation
Management Co. Ltd.scope
Revoked but not canceled controlling
Shenzhen Longgang Henggang Huagang
subsidiary not brought into the consolidation
Industrial Co. Ltd.scope
Guangzhou Bopi Enterprise Management
Shareholder of subsidiaries
Consulting Co. Ltd.Shenzhen Property Management Co. Ltd. Controlling subsidiary of the parent company
Guoren Property Insurance Co. Ltd. Controlling subsidiary of the parent company
Shenzhen Water Planning and Design Institute
Controlling subsidiary of the parent company
Co. Ltd.Shenzhen General Institute of Architectural
Controlling subsidiary of the parent company
Design and Research Co. Ltd.Shenzhen SPG Property Cleaning Co. Ltd. Controlling subsidiary of the parent company
Shenzhen Property Management Co. Ltd.Controlling subsidiary of the parent company
Shantou Branch
Shenzhen Guomao Property Management Co.Controlling subsidiary of the parent company
Ltd.Shenzhen Xinfeng Real Estate Consulting Co.Investee
Ltd.Guangdong Huizhou Luofushan Mineral Water
Investee
Beverage Co. Ltd.Shenzhen Runhua Automobile Trading Co.Investee
Ltd.Canada Great Wall (Vancouver) Co. Ltd. Investee
Australia Berkton Property Limited Investee
Paklid Limited Investee
Shenzhen Shenfang Department Store Co. Ltd. Investee
Shenzhen Ronghua Electromechanical
Investee
Engineering Co. Ltd.Xi’an Xinfeng Property Trading Co. Ltd. Investee
Fengkai Lianfeng Cement Manufacturing Co.Investee
Ltd.Beijing SPG Property Management Co. Ltd. Investee
159ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
(II) Related party transactions
1. Purchase and sale of goods rendering and receiving of services
(1) Details
1) Purchase of goods and receiving of services
Current period Preceding period
Related parties Content of transactions
cumulative comparative
Shenzhen Water Planning
Testing services 678902.77 554056.60
and Design Institute Co. Ltd.Shenzhen General Institute of
Architectural Design and Design services 622641.51 5329811.33
Research Co. Ltd.Guoren Property Insurance
Insurance services 80263.00
Co. Ltd.Guoren Property Insurance
Leasing services 283018.87
Co. Ltd.Shenzhen Property
Property services 6482286.26 11530169.32
Management Co. Ltd.Shenzhen SPG Property
Cleaning services 459622.70
Cleaning Co. Ltd.Shenzhen Property
Management Co. Ltd. Property services 2789916.70 2668895.66
Shantou Branch
Subtotal 10654010.24 20825574.48
2) Sale of goods and rendering of services
Current period Preceding period
Related parties Content of transactions
cumulative comparative
Guoren Property Insurance
Leasing services 843039.96 812102.75
Co. Ltd.Shenzhen Property
Leasing services 2663510.39 4290671.33
Management Co. Ltd.Shenzhen SPG Property
Leasing services 39999.97 37142.83
Cleaning Co. Ltd.Subtotal 3546550.32 5139916.91
2. Related party leases
(1) Details
The Company as the lessor
Types of assets Lease income for Lease income for
Lessees
leased the current period the preceding period
Shenzhen Property Buildings and
2663510.394290671.33
Management Co. Ltd. structures
Shenzhen SPG Property Buildings and
39999.9737142.83
Cleaning Co. Ltd. structures
Guoren Property Insurance Buildings and
843039.96812102.75
Co. Ltd. structures
Subtotal 3546550.32 5139916.91
160ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
3. Call loans between related parties
Commencement
Related parties Amount Maturity date Remarks
date
Call loans from
related parties
Guangzhou Bopi
Interest accrued for
Enterprise
May 20 2021 May 20 2023 the current period was
Management
3638451.63 yuan.
Consulting Co. Ltd.
4. Assets transfer and debt restructuring of the related parties
Content of related Current period Preceding period
Related parties
party transactions cumulative comparative
Shenzhen Guomao
Transfer of property
Property Management 196676700.00
management company
Co. Ltd.
5. Key management’s emoluments
Unit: in ten thousand yuan
Current period Preceding period
Items
cumulative comparative
Key management’s emoluments 967.69 812.36
6. Other related party transactions
In order to advocate core employees to share the operating results of market-oriented projects and
assumption of operational risks stimulate their internal motivation to enhance efficiency and
increase benefits improve asset management efficiency and achieve the preservation and
appreciation of state-owned assets the Company has formulated the ―Management Measures for
Employee’s Co-investment in the SPG Linxi County Project‖. Pursuant to the aforementioned
document the co-investment matter will constitute a joint investment of related party transactions
with certain directors supervisors and senior executives of the Company. As of December 31
2023 the Company’s directors supervisors and senior executives have jointly invested 8.95
million yuan in the SPG Linxin Community Project.(III) Balances due to or from related parties
1. Balances due from related parties
Closing balance Opening balance
Items Related parties
Provision for bad Provision for bad
Book balance Book balance
debts debts
Accounts
receivable
Shenzhen Xinfeng
Real Estate 1215543.75 1215543.75 1201345.82 1201345.82
Consulting Co. Ltd.Subtotal 1215543.75 1215543.75 1201345.82 1201345.82
Other
receivables
161ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Closing balance Opening balance
Items Related parties
Provision for bad Provision for bad
Book balance Book balance
debts debts
Guangdong Huizhou
Luofushan Mineral
10465168.8110465168.8110465168.8110465168.81
Water Beverage Co.Ltd.Shenzhen Runhua
Automobile Trading 3072764.42 3072764.42 3072764.42 3072764.42
Co. Ltd.Canada Great Wall
89035748.0789035748.0789035748.0789035748.07
(Vancouver) Co. Ltd.Australia Berkton
12559290.5812559290.5812559290.5812559290.58
Property Limited
Paklid Limited 19393335.84 19393335.84 18689545.58 18689545.58
Shenzhen Shenfang
Department Store 237648.82 237648.82 237648.82 237648.82
Co. Ltd.Shenzhen Ronghua
Electromechanical 475223.46 475223.46 475223.46 475223.46
Engineering Co. Ltd.Xi’an Xinfeng
Property Trading Co. 8419205.19 8419205.19 8419205.19 8419205.19
Ltd.Shenzhen Shenxi
Building Decoration 7660529.37 7660529.37 7660529.37 7660529.37
Co. Ltd.Shenzhen Nanyang
3168721.003168721.003168721.003168721.00
Hotel Co. Ltd.Beijing SPG Property
Management Co. 6905673.69 6533817.09
Ltd.Subtotal 161393309.25 161021452.65 153783845.30 153783845.30
2. Balances due to related parties
Items Related parties Closing balance Opening balance
Interest payable
Shenzhen Investment Holdings
16535277.9416535277.94
Co. Ltd.Subtotal 16535277.94 16535277.94
Accounts payable
Shenzhen Jian’an (Group) Co.
10654310.21
Ltd.Shenzhen Property
17053636.6111053366.80
Management Co. Ltd.Subtotal 17053636.61 21707677.01
Other payables
Shenzhen Property
358178.26148908.08
Management Co. Ltd.Shenzhen Oriental New World
902974.64902974.64
Department Store Co. Ltd.Fengkai Lianfeng Cement
1867348.001867348.00
Manufacturing Co. Ltd.Shenzhen Real Estate
14981420.9914981420.99
Electromechanical
162ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Items Related parties Closing balance Opening balance
Management Co. Ltd.Shenzhen Zhentong New
Electromechanical Industrial 8310832.50 8310832.50
Development Co. Ltd.Shenzhen Shenfang
639360.38639360.38
Department Store Co. Ltd.Shenzhen Longgang Henggang
165481.09165481.09
Huagang Industrial Co. Ltd.Guangzhou Bopi Enterprise
Management Consulting Co. 206903717.13 203345881.60
Ltd.Subtotal 234129312.99 230362207.28
XI. Commitments and contingencies
(I) Significant commitments
As of December 31 2023 the Company has signed a capital commitment of 273712730.19 yuan
which has not yet been recognized in the financial statements.(II) Contingencies
1. Contingent liabilities incurred by pending lawsuit/arbitration and the financial effect
Court seized of
Plaintiffs Defendants Cause of action Amount of subject Remarks
the case
Xi’an Municipal Commission
Dispute over Shaanxi Progress of the case:
Xi’an Xinfeng Property of Commerce and Trade 21.54 million yuan and
investment Provincial High under execution;
Trading Co. Ltd. Xi’an Commerce and interest thereof
compensation People’s Court Details: [Note 1]
Tourism Co. Ltd.Huizhou Mingxiang
Economic Information
Principal of 177.15 Progress of the case:
Consulting Co. Ltd. Dispute over People’s Court of
Guangdong Jianbang Group million yuan and judgment completed
Huizhou Hongfa Industry bill payment Huiyang District
(Huiyang) Industrial Co. Ltd. interest of 2.85 million pending execution;
and Trade Co. Ltd. and claim Huizhou City
yuan Details: [Note 2]
Huizhou Jinlongsheng
Industrial Co. Ltd.Guangzhou Bopi Enterprise
Management Consulting Co.Ltd. Evergrande Real Estate Dispute over
Intermediate Case progress: the
Company Pearl River Delta joint venture
People’s Court of case was heard and
Real Estate Development and cooperative
The Company Huizhou City 743.58 million yuan currently in the first
Co. Ltd. Shenzhen Qijin real estate
Guangdong instance;
Investment Co. Ltd. with development
Province Details: [Note 3]
Guangdong Jianbang Group contracts
(Huiyang) Industrial Co. Ltd.as the third party
Case progress: First
People’s Court of Principal and interest
Guangdong Jianbang Group Loan contract instance judgment
The Company Luohu District totaling 395.69 million
(Huiyang) Industrial Co. Ltd. dispute completed;
Shenzhen City yuan
Details: [Note 4]
Guangdong Jianbang Group
(Huiyang) Industrial Co.Ltd. Guangzhou Bopi
Case progress: the
Enterprise Management
People’s Court of Principal and interest case was heard and
Consulting Co. Ltd. Loan contract
The Company Huiyang District totaling 419.52 million currently in the first
Evergrande Real Estate dispute
Huizhou City yuan instance;
Company Pearl River Delta
Details: [Note 5]
Real Estate Development
Co. Ltd. Shenzhen Qijin
Investment Co. Ltd.Note 1: Xi’an Xinfeng Property Trading Co. Ltd. (the ―Xi’an Xinfeng Company‖) is a joint
venture with overseas investments co-established in Xi’an by the Company’s wholly-owned
subsidiary Xinfeng Enterprise Co. Ltd. with shareholding of 67% with cash contribution by
163ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Xi’an Commerce and Trade Building a subsidiary of Xi’an Municipal Commission of Commerce
and Trade (the ―Xi’an MCCT‖) with shareholding of 16% with land use rights contribution and
by Hong Kong Dadiwang Industrial Investment Co. Ltd. with shareholding of 17%. The joint
venture is mainly engaged in real estate development and its development project is Xi’an
Commerce and Trade Building. The project started construction on November 28 1995 but was
forced to be suspended in 1996 due to serious disagreements between the cooperating parties on
project management policies. In 1997 the Xi’an Municipal People’s Government forcibly
withdrew the investments made by Xi’an Commerce and Trade Building from Xi’an Xinfeng
Company and transferred the investments to Xi’an Commerce and Tourism Co. Ltd. (the
―Commerce and Tourism Company‖) an affiliated entity of Xi’an MCCT. However a lawsuit
regarding the investments compensation arose therefor. On December 19 2001 the Shaanxi
Provincial High People’s Court issued a judgment numbered 2000 Shaan Jing Yi Chu Zi 25: a. the
Commerce and Tourism Company should pay a compensation of 36.62 million yuan and interest
thereof to Xi’an Xinfeng Company one month after the judgment came into effect. In case of
overdue performance the debt interest during the delayed performance period should be doubled;
b. the Xi’an MCCT should bear joint and several liability for the interest on the aforementioned
compensation.The assets of the Commerce and Tourism Company were auctioned off in this case and 15.20
million yuan has been recovered through execution. Based on the property clues obtained the
Company submitted multiple applications to the Shaanxi Provincial High People’s Court for
resumption of execution. As of December 31 2023 this case is in the execution stage.As of December 31 2023 the Company’s book balance of long-term equity investments of Xi’an
Xinfeng Company was 32840729.61 yuan with full provision for impairment made. The book
balance of creditor’s right was 8419205.19 yuan with full provision for impairment made.Note 2: Guangdong Jianbang Group (Huiyang) Industrial Co. Ltd. (―Jianbang Company‖) is a
subsidiary of the Company with shareholding of 51%. Due to Jianbang Company’s inability to
redeem trade acceptance due in January 2022 totaling 177.15 million yuan the plaintiffs filed a
lawsuit on dispute over the bill payment claim with the People’s Court of Huiyang District
Huizhou City. The judgement was completed on March 14 2023 and Jianbang Company was
ordered to pay trade acceptance and overdue interests to three plaintiffs within 15 days (including
bearing litigation and preservation costs of approximately 1.03 million yuan).As of December 31 2023 Building 2 and Building 4 of the first phase of the Linxin Community
project with an estimated registered price of 220 million yuan totaling 153 units were seized.Jianbang Company is currently negotiating a settlement with the plaintiff.Note 3: On April 30 2021 the Company signed the ―Cooperative Development Agreement‖ and
―Entrusted Management Agreement‖ with Guangzhou Bopi Enterprise Management Consulting
164ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Co. Ltd. (the ―Guangzhou Bopi‖) Evergrande Real Estate Company Pearl River Delta Real
Estate Development Co. Ltd. (the ―Evergrande Pearl River Delta‖) and Jianbang Company.Guangzhou Bopi promised that Jianbang Company shall achieve cumulative net profits no less
than 1.25 billion yuan from 2021 to 2025. If Guangzhou Bopi fails to fulfill its profit commitment
it shall make up for the difference. On June 30 2021 due to the acquisition of 51% of equity of
Guangzhou Bopi by Shenzhen Qijin Investment Co. Ltd. (the ―Shenzhen Qijin‖) the Company
Guangzhou Bopi Evergrande Pearl River Delta and Shenzhen Qijin jointly signed Supplementary
Agreement I to the ―Cooperative Development Agreement‖ stipulating that Shenzhen Qijin shall
bear joint and several liability with Evergrande Pearl River Delta for Guangzhou Bopi’s profit
commitment to the Company and balance replenishment matters stipulated in the ―Cooperative
Development Agreement‖. Due to the fundamental breach of contract by Guangzhou Bopi and
Evergrande Pearl River Delta and their actual loss of performance ability causing the failure to
achieve the purpose and expected benefits of the contract the Company filed a lawsuit. This case
was heard in February 2024 and is currently in the first instance.Note 4: In 2021 the Company acquired 51% of the defendant’s equity held by the person other
than involved in the case and agreed to provide interest-bearing loans to Jianbang Company based
on the holding proportion. Later Jianbang Company made borrowings from the Company in two
installments and signed the ―Loan Agreement‖. After the agreement was signed the Company
provided borrowings to Jianbang Company in accordance with the agreement and fulfilled its
lending obligations. Both borrowings have already expired but have not been repaid by Jianbang
Company which constitutes a breach of contract. As a state-owned listed company the Company
filed a lawsuit to protect state-owned assets from losses. The first instance judgment of this case
was made in December 2023. In January 2024 the Company received a civil judgment made by
the People’s Court of Luohu District Shenzhen City Guangdong Province stating that Jianbang
Company shall repay the principal of borrowings of 344696200.26 yuan and pay interest to the
Company within ten days from the effective date of the judgment; Jianbang Company shall pay
liquidated damages to the Company within ten days from the effective date of the judgment.Note 5: In 2021 the Company acquired 51% equity of Jianbang Company held by Guangzhou
Bopi and agreed to provide interest bearing borrowings to Jianbang Company based on the
holding proportion. Later five parties signed an agreement stipulating that the Company will
provide borrowings to Jianbang Company and the latter will provide corresponding collateral. At
the same time Guangzhou Bopi Evergrande Pearl River Delta and Shenzhen Qijin shall bear joint
and several guarantee responsibilities for 49% of the total borrowing amount as well as interest
and liquidated damages. After the agreement was signed the Company provided borrowings to
Jianbang Company in accordance with the agreement and fulfilled its lending obligations.However Jianbang Company was unable to repay the borrowings. As a state-owned listed
company the Company filed a lawsuit to protect state-owned assets from losses. This case was
165ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
heard in March 2024 and is currently in the first instance.
2. Contingent liabilities incurred by providing debt guarantees for other entities and the financial
effect
As of December 31 2023 the Company provided mortgaged guarantees of 1106.51 million yuan
for purchasers of commercial housing in accordance with real estate business practices.Amount of
borrowings
Guaranteed Financial institutions Maturity date of
guaranteed (in Remarks
parties granting borrowings guarantees
ten thousand
yuan)
Until the mortgage
registration of the property
Shanglin
Homebuyer China Construction Bank 47.25 certificate is completed
Community
and handed over to the
bank for safekeeping
Until the mortgage
China Construction Bank registration of the property
Homebuyer and Agricultural Bank of 935.87 certificate is completed Cuilin Community
China and handed over to the
bank for safekeeping
Until the mortgage
China Construction Bank registration of the property
Chuanqi Donghu
Homebuyer Industrial and Commercial 1087.97 certificate is completed
Garden
Bank of China and handed over to the
bank for safekeeping
China Construction Bank
Bank of Communications Until the mortgage
Industrial and Commercial registration of the property
Homebuyer Bank of China Bank of 32241.18 certificate is completed Tianyue Bay
China China Everbright and handed over to the
Bank Postal Savings bank for safekeeping
Bank of China
Industrial and Commercial
Bank of China Huaxia Until the mortgage
Bank Agricultural Bank registration of the property
Homebuyer of China Postal Savings 75304.40 certificate is completed Guangming Lane
Bank of China China and handed over to the
Merchants Bank Bank of bank for safekeeping
China
Until the mortgage
registration of the property
China Merchants Bank Linxin
Homebuyer 1034.00 certificate is completed
and Bank of China Community
and handed over to the
bank for safekeeping
Subtotal 110650.67
XII. Events after the balance sheet date
Significant non-adjusting events
Effects on financial Reasons for effects
Items Contents position and being unable to be
operating results estimated
In January 2024 the Company
Disposal of
cancelled its subsidiary Xinfeng Not applicable
subsidiaries
Real Estate Co. Ltd.
166ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
XIII. Other significant events
Segment information
The Company’s main business is development construction and sales of real estate products
collection of lease and management fees for properties leased out with its operating results
managed and evaluated on an integral basis. Therefore the Company is not required to disclose
segment information. Please refer to section V (II) 1 of notes to the financial statements for details
on the Company’s revenues.XIV. Notes to items of parent company financial statements
(I) Notes to items of parent company balance sheet
1. Accounts receivable
(1) Age analysis
Ages Closing book balance Opening book balance
Within 1 year 15636256.41 12426543.02
Over 5 years 4450138.62 9653566.27
Total 20086395.03 22080109.29
(2) Provision for bad debts
1) Details on categories
Closing balance
Book balance Provision for bad debts
Categories
Provision Carrying amount
Amount % to total Amount proportion
(%)
Receivables with
provision made on 10084109.60 50.20 10084109.60 100.00
an individual basis
Receivables with
provision made on a 10002285.43 49.80 251400.42 2.51 9750885.01
collective basis
Total 20086395.03 100.00 10335510.02 51.46 9750885.01
(Continued)
Opening balance
Book balance Provision for bad debts
Categories
Provision Carrying amount
Amount % to total Amount proportion
(%)
Receivables with
provision made on 10020587.91 45.38 10020587.91 100.00
an individual basis
Receivables with
provision made on a 12059521.38 54.62 352843.17 2.93 11706678.21
collective basis
Total 22080109.29 100.00 10373431.08 46.98 11706678.21
167ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
2) Significant accounts receivable with provision made on an individual basis
Opening balance Closing balance
Debtors Provision
Provision for Provision for Basis for
Book balance Book balance proportion
bad debts bad debts provision
(%)
Long-term
Expected to be
unrecovered 10020587.91 10020587.91 10084109.60 10084109.60 100.00
irrecoverable
property sales
Subtotal 10020587.91 10020587.91 10084109.60 10084109.60 100.00
3) Accounts receivable with provision for bad debts made on a collective basis
Closing balance
Items Provision for bad Provision
Book balance
debts proportion (%)
Portfolio grouped with property
5028008.59251400.425.00
sales receivable
Portfolio grouped with balances
due from related parties within 4974276.84
the consolidation scope
Subtotal 10002285.43 251400.42 2.51
(3) Changes in provision for bad debts
Increase/Decrease
Items Opening balance Closing balance
Recovery Write-
Accrual Others
or reversal off
Receivables
with provision
for bad debts 10020587.91 63521.69 10084109.60
made on an
individual basis
Receivables
with provision
for bad debts 352843.17 -101442.75 251400.42
made on a
collective basis
Total 10373431.08 -37921.06 10335510.02
(4) Details of the top 5 debtors with largest balances of accounts receivable and contract assets
Closing book balance Provision for bad Proportion to the
debts of accounts
total balance of
receivable and
Debtors accounts
Accounts Contract provision for
Subtotal receivable and
receivable assets impairment of
contract assets (%)
contract assets
Shenzhen Petrel
4974276.844974276.8424.76
Hotel Co. Ltd.Daxing Auto Parts
2059090.422059090.4210.252059090.42
Co. Ltd.Shenzhen Xinfeng
Real Estate 1215543.75 1215543.75 6.05 1215543.75
Consulting Co. Ltd.Wang Weidong 1200000.00 1200000.00 5.97 1200000.00
Wang Guodong 913820.47 913820.47 4.55 913820.47
Subtotal 10362731.48 10362731.48 51.58 5388454.64
168ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
2. Other receivables
(1) Details
Items Closing balance Opening balance
Dividend receivable 29222722.88 39222722.88
Other receivables 1693941657.82 1672657609.57
Total 1723164380.70 1711880332.45
(2) Dividend receivable
1) Details
Items Closing balance Opening balance
Shenzhen SPG Longgang Development
29222722.8839222722.88
Co. Ltd.Subtotal 29222722.88 39222722.88
2) Significant balance with age over one year
Reasons for Whether impaired
Items Closing balance Ages
balances and judgement basis
Shenzhen SPG The payment is
Longgang Development 29222722.88 1-2 years postponed No
Co. Ltd. temporarily.Subtotal 29222722.88
(3) Other receivables
1) Other receivables categorized by nature
Nature of receivables Closing book balance Opening book balance
Portfolio grouped with balances
2371906725.112466661819.14
due from related parties
Portfolio grouped with government
165460.00165460.00
funds receivable
Portfolio grouped with employee
62454.8039400.00
petty cash receivable
Portfolio grouped with advances
received and paid on behalf of 67200.00 21733.60
others
Portfolio grouped with other
142185626.876940862.88
intercompany balances receivable
Subtotal 2514387466.78 2473829275.62
2) Age analysis
Ages Closing book balance Opening book balance
Within 1 year 92173735.70 347340209.70
1-2 years 333456337.77 475880860.11
2-3 years 456845625.71 105934643.85
3-4 years 104875297.41 77979518.30
4-5 years 70181566.47 137618682.95
169ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Ages Closing book balance Opening book balance
Over 5 years 1456854903.72 1329075360.71
Total 2514387466.78 2473829275.62
3) Provision for bad debts
a. Details on categories
Closing balance
Categories Book balance Provision for bad debts
Carrying amount
Provision
Amount % to total Amount
proportion (%)
Receivables with
provision made on an 820414389.79 32.63 820414389.79 100.00
individual basis
Receivables with
provision made on a 1693973076.99 67.37 31419.17 1693941657.82
collective basis
Subtotal 2514387466.78 100.00 820445808.96 32.63 1693941657.82
(Continued)
Opening balance
Categories Book balance Provision for bad debts
Carrying amount
Provision
Amount % to total Amount
proportion (%)
Receivables with
provision made on an 816573394.13 33.01 800992839.69 98.09 15580554.44
individual basis
Receivables with
provision made on a 1657255881.49 66.99 178826.36 0.01 1657077055.13
collective basis
Subtotal 2473829275.62 100.00 801171666.05 32.39 1672657609.57
b. Other receivables with provision made on a collective basis
Closing balance
Portfolios Provision for Provision
Book balance
bad debts proportion (%)
Portfolio grouped with balances due
1693116778.79
from related parties
Portfolio grouped with government
165460.00
funds receivable
Portfolio grouped with employee
62454.80
petty cash receivable
Portfolio grouped with advances
received and paid on behalf of 67200.00 3360.00 5.00
others
Portfolio grouped with other
561183.4028059.175.00
intercompany balances receivable
Subtotal 1693973076.99 31419.17
170ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
4) Changes in provision for bad debts
Stage 1 Stage 2 Stage 3
Lifetime Lifetime
Items 12month expected credit expected credit Total
expected
losses (credit not losses (credit
credit losses
impaired) impaired)
Opening balance 139907.19 801031758.86 801171666.05
Opening balance in the
——————
current period
--Transferred to stage 2
--Transferred to stage 3
--Reversed to stage 2
--Reversed to stage 1
Provision made in the
-139907.1919414050.1019274142.91
current period
Provision recovered or
reversed in the current
period
Provision written off in
the current period
Other changes
Closing balance 820445808.96 820445808.96
Provision proportion (%) 100.00 32.63
5) Details of the top 5 debtors with largest balances
Proportion to the total Provision for bad
Nature of Closing book
Debtors Ages balance of other debts at the balance
receivables balance
receivables (%) sheet date
Shantou Huafeng
Real Estate Balances due Within 1 year
754160642.8729.99
Development Co. from subsidiaries over 5 years
Ltd.Guangdong
Jianbang Group Balances due
822043317.96 2-3 years 32.69
(Huiyang) from subsidiaries
Industrial Co. Ltd.Xinfeng Enterprise Balances due
535782669.79 Over 5 years 21.31 535782669.79
Co. Ltd. from subsidiaries
Great Wall Estate Balances due
104981769.07 Over 5 years 4.18 104981769.07
Company Inc. from subsidiaries
Balances due
Hualin Co. Ltd. 90686884.30 3-4 years 3.61
from subsidiaries
Subtotal 2307655283.99 91.78 640764438.86
171ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
3. Long-term equity investments
(1) Details
Closing balance Opening balance
Items
Provision for Provision for
Book balance Carrying amount Book balance Carrying amount
impairment impairment
Investments in
1715520833.00392155084.611323365748.391716020833.00133839271.151582181561.85
subsidiaries
Investments in
associates and 11977845.58 11977845.58 12071773.22 11977845.58 93927.64
joint ventures
Total 1727498678.58 404132930.19 1323365748.39 1728092606.22 145817116.73 1582275489.49
(2) Investments in subsidiaries
Opening balance Increase/Decrease Closing balance
Investees
Provision for Investments Investments Provision for Provision for
Carrying amount Others Carrying amount
impairment increased decreased impairment impairment
Shenzhen Petrel
20605047.5020605047.50
Hotel Co. Ltd.Shenzhen SPG
Investment Co. 9000000.00 9000000.00
Ltd.Xinfeng Enterprise
556500.00556500.00
Co. Ltd.Xinfeng Real Estate
22717697.7322717697.73
Co. Ltd.Shenzhen Zhentong
Engineering Co. 11332321.45 11332321.45
Ltd.Great Wall Estate
1435802.001435802.00
Company Inc.Shenzhen SPG Free
4750000.004750000.00
Trading Co. Ltd.Shenzhen Huazhan
Construction 6000000.00 6000000.00
Supervision Co. Ltd.Beijing SPG
Property
500000.00
Management Co.Ltd.Shenzhen Lianhua
13458217.0513458217.05
Enterprise Co. Ltd.Shenzhen SPG
Longgang
30850000.0030850000.00
Development Co.Ltd.Beijing Xinfeng
Real Estate
Management & 64183888.90 64183888.90
Development Co.Ltd.Shantou Huafeng
Real Estate
16467021.0216467021.02
Development Co.Ltd.Paklid Limited 201100.00 201100.00
Australia Berkton
906630.00906630.00
Property Limited
Shenzhen Shenfang
Department Store 9500000.00 9500000.00
Co. Ltd.Shantou Xinfeng
58547652.2558547652.25
Building
Guangdong
Jianbang Group
450000000.00258815813.46191184186.54258815813.46
(Huiyang)
Industrial Co. Ltd.Shenzhen SPG
995000000.00995000000.00
Chuanqi Real
172ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Opening balance Increase/Decrease Closing balance
Investees
Provision for Investments Investments Provision for Provision for
Carrying amount Others Carrying amount
impairment increased decreased impairment impairment
Estate Development
Co. Ltd.Hualin Co. Ltd. 8955.10 8955.10
Subtotal 1582181561.85 133839271.15 258815813.46 1323365748.39 392155084.61
(3) Investments in associates and joint ventures
Opening balance Increase/Decrease
Investment
Adjustment in
Investees income
Carrying Provision for Investments Investments other
recognized
amount impairment increased decreased comprehensive
under equity
income
method
Joint ventures
Fengkai Xinghua
9455465.38
Hotel
Subtotal 9455465.38
Associates
Shenzhen Ronghua
Electromechanical
93927.641076954.64-93927.64
Engineering Co.Ltd.Shenzhen Runhua
Automobile 1445425.56
Trading Co. Ltd.Subtotal 93927.64 2522380.20 -93927.64
Total 93927.64 11977845.58 -93927.64
(Continued)
Increase/Decrease Closing balance
Investees Cash dividend/
Changes in Provision for Carrying Provision for
Profit declared for Others
other equity impairment amount impairment
distribution
Joint ventures
Fengkai Xinghua
9455465.38
Hotel
Subtotal 9455465.38
Associates
Shenzhen
Ronghua
Electromechanical 1076954.64
Engineering Co.Ltd.Shenzhen Runhua
Automobile 1445425.56
Trading Co. Ltd.Subtotal 2522380.20
Total 11977845.58
173ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
(4) Impairment test on long-term equity investments
1) Recoverable amount determined based on the fair value less costs of disposal
Recoverable Provision for impairment
Items Carrying amount
amount in the current period
Guangdong
Jianbang Group
450000000.00191184186.54258815813.46
(Huiyang) Industrial
Co. Ltd.Subtotal 450000000.00 191184186.54 258815813.46
(Continued)
Determination method of fair value Key parameters and
Items
and costs of disposal determination basis
Guangdong The fair value is determined by the
Estimated selling price sales
Jianbang Group assets-based method and the relevant
volume costs of production
(Huiyang) Industrial costs of disposal are determined by the
and other related expenses.Co. Ltd. estimated costs of disposal rate.Subtotal
2) Other remarks
At the end of reporting period the Company performed an impairment test on Guangdong
Jianbang Group (Huiyang) Industrial Co. Ltd. with signs of impairment and made provision for
impairment on assets that may suffer losses based on the principle of prudence.(II) Notes to items of the parent company income statement
1. Operating revenue/Operating cost
(1) Details
Current period cumulative Preceding period comparative
Items
Revenue Cost Revenue Cost
Main operations 80116913.98 33500490.21 207117745.27 66761336.83
Other operations 32529.16 31823.86
Total 80149443.14 33500490.21 207149569.13 66761336.83
Including: Revenue
from contracts with 14830961.90 886697.76 161658149.52 27249452.24
customers
(2) Breakdown of revenue from contracts with customers
1) Breakdown of revenue by goods or services
Current period cumulative Preceding period comparative
Items
Revenue Cost Revenue Cost
Real estates 14830961.90 886697.76 161658149.52 27249452.24
Subtotal 14830961.90 886697.76 161658149.52 27249452.24
174ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
2) Breakdown of revenue by operating regions
Current period cumulative Preceding period comparative
Items
Revenue Cost Revenue Cost
Guangdong Province 14830961.90 886697.76 161658149.52 27249452.24
Subtotal 14830961.90 886697.76 161658149.52 27249452.24
3) Breakdown of revenue by time of transferring goods or rendering services
Items Current period cumulative Preceding period comparative
Recognized at a point in time 14830961.90 161658149.52
Subtotal 14830961.90 161658149.52
2. Investment income
Items Current period cumulative Preceding period comparative
Investment income from long-
term equity investments under -93927.64 -178240.64
equity method
Investment income from long-
term equity investments under 7012181.03 76727761.73
cost method
Investment income from
disposal of long-term equity 1816919.56 203360562.19
investments
Investment income from held-
161491.79159619.01
for-trading financial assets
Dividend income from other
537600.00813960.00
equity instrument investments
Investment income from debt
89607.85
restructuring
Total 9434264.74 280973270.14
XV. Other supplementary information
(I) Non-recurring profit or loss
1. Schedule of non-recurring profit or loss
(1) Details
Items Amount Remarks
Gains on disposal of non-current assets including write-off
9940254.23
of provision for impairment
Government grants included in profit or loss (excluding
those closely related to operating activities of the
Company satisfying government policies and regulations 440049.96
enjoyed based on certain standards and continuously
affecting gains or losses of the Company)
Gains on changes in fair value of financial assets and
financial liabilities held by non-financial enterprises and
gains from disposal of financial assets and financial
liabilities excluding those arising from hedging business
175ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Items Amount Remarks
related to operating activities
Fund possession charge from non-financial entities and
included in profit or loss
Gains on assets consigned to the third party for investment
7985840.50
or management
Gains on designated loans
Losses on assets incurred due to force majeure such as
natural disasters
Reversed provision for impairment of receivables based on
3994030.79
impairment testing on an individual basis
Gains on acquisition of subsidiaries joint ventures and
associates due to the surplus of acquisition-date fair value
of net identifiable assets in acquiree over the acquisition
cost
Net profit on subsidiaries acquired through business
combination under common control from the beginning of
the period to the combination date
Gains on non-cash assets exchange
Gains on debt restructuring
One-off expenses incurred due to the discontinuation of
relevant operating activities such as severance payments
One-off effects on profit or loss due to amendments of
laws and regulations on taxation accounting etc.Share-based payments recognized at one time due to
cancellation or modification of equity incentive plan
Gains arising from changes in the fair value of employee
benefits payable after the vesting date for cash-settled
share-based payment
Gains on changes in fair value of investment properties
with subsequent measurement using the fair value model
Gains on transactions with unfair value
Contingent gains on non-operating activities
Management charges for consigned operations
Other non-operating revenue or expenditures 393461.44
Other profit or loss satisfying the definition of non-
recurring profit or loss
Subtotal 22753636.92
Less: Enterprise income tax affected 5639314.23
Non-controlling interest affected (after tax) -30421.58
Net non-recurring profit or loss attributable to shareholders
17144744.27
of the parent company
2. Remarks on the exception that the Company recognized non-recurring profit or loss as listed in
the ―Interpretation Pronouncement on Information Disclosure Criteria for Public Companies No. 1
– Non-Recurring Profit or Loss (2023 Edition)‖ as recurring profit or loss based on relevant
definition and principle are as follows:
176ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Items Amount Reasons
As it occurs continuously from year
Refund of handling fees for
68364.83 to year and is not accidental it is
withholding individual income tax
recognized as recurring profit or loss.As it occurs continuously from year
VAT extra deductions 58857.60 to year and is not accidental it is
recognized as recurring profit or loss.
3. Effect on non-recurring profit or loss in 2022 due to implementation of ―Interpretation
Pronouncement on Information Disclosure Criteria for Public Companies No. 1 – Non-Recurring
Profit or Loss (2023 Edition)‖
Items Amount
Net non-recurring profit or loss attributable to the owner of the
132558400.46
parent company in 2022
Net non-recurring profit or loss attributable to the owner of the
parent company calculated based on the ―Interpretation
Pronouncement on Information Disclosure Criteria for Public 132264749.65
Companies No. 1 – Non-Recurring Profit or Loss (2023
Edition)‖ in 2022
Difference 293650.81
(II) ROE and EPS
1. Details
Weighted average EPS (yuan/share)
Profit of the reporting period
ROE (%) Basic EPS Diluted EPS
Net profit attributable to
-6.52-0.2479-0.2479
shareholders of ordinary shares
Net profit attributable to
shareholders of ordinary shares
-6.96-0.2649-0.2649
after deducting non-recurring
profit or loss
2. Calculation process of weighted average ROE
Current period
Items Symbols
cumulative
Net profit attributable to shareholders of ordinary
A -250839542.09
shares
Non-recurring profit or loss B 17144744.27
Net profit attributable to shareholders of ordinary
C=A-B -267984286.36
shares after deducting non-recurring profit or loss
Opening balance of net assets attributable to
D 4004240547.70
shareholders of ordinary shares
Net assets attributable to shareholders of ordinary
shares increased due to offering of new shares or E
conversion of debts into shares
Number of months counting from the next month
when the net assets were increased to the end of the F
reporting period
Net assets attributable to shareholders of ordinary
shares decreased due to share repurchase or cash G 61711260.00
dividends appropriation
177ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
Current period
Items Symbols
cumulative
Number of months counting from the next month
when the net assets were decreased to the end of the H 6
reporting period
Others I -607261.41
Number of months counting from the
Others next month when the net assets were
J 6
increased or decreased to the end of
the reporting period
Number of months in the reporting period K 12
L= D+A/2+
Weighted average net assets E×F/K- 3847661515.95
G×H/K±I×J/K
Weighted average ROE M=A/L -6.52%
Weighted average ROE after deducting non-
N=C/L -6.96%
recurring profit or loss
3. Calculation process of basic EPS and diluted EPS
(1) Calculation process of basic EPS
Current period
Items Symbols
cumulative
Net profit attributable to shareholders of ordinary
A -250839542.09
shares
Non-recurring profit or loss B 17144744.27
Net profit attributable to shareholders of ordinary
C=A-B -267984286.36
shares after deducting non-recurring profit or loss
Opening balance of total shares D 1011660000.00
Number of shares increased due to conversion of
reserve to share capital or share dividend E
appropriation
Number of shares increased due to offering of new
F
shares or conversion of debts into shares
Number of months counting from the next month
when the shares were increased to the end of the G
reporting period
Number of shares decreased due to share repurchase H
Number of months counting from the next month
when the shares were decreased to the end of the I
reporting period
Number of shares decreased in the reporting period J
Number of months in the reporting period K 12
L=D+E+F×G/K-
Weighted average of outstanding ordinary shares 1011660000.00
H×I/K-J
Basic EPS M=A/L -0.2479
Basic EPS after deducting non-recurring profit or
N=C/L -0.2649
loss
178ShenZhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. Annual Report 2023
(2) Calculation process of diluted EPS
The calculation process of diluted EPS is the same as that of basic EPS.Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.March 30 2024
179
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