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

Stock Code: 000029 200029 Stock Name: SPG SPG-B Announcement No.: 2023-038

SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE

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

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

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

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

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

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

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

accept legal responsibility for such contents.

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

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

accurate and complete.

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

□Yes □ No

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

I Key Financial Information

(I) Key Accounting Data and Financial Indicators

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

Q3 2023 YoY change (%) Q1-Q3 2023 YoY change (%)

Operating revenue (RMB) 90700026.78 -43.37% 354316805.85 -32.68%

Net profit attributable to the listed

686777.00-103.43%-36431405.81-129.12%

company’s shareholders (RMB)

Net profit attributable to the listed

company’s shareholders before -1532526.34 -92.44% -44001435.49 1304.53%

exceptional gains and losses (RMB)

Net cash generated from/used in

——-63333407.5989.63%

operating activities (RMB)

Basic earnings per share

0.0007-103.54%-0.0360-129.10%

(RMB/share)

Diluted earnings per share

0.0007-103.54%-0.0360-129.10%

(RMB/share)

Weighted average return on equity

0.02%0.52%-0.92%-4.09%

(%)

30 September 2023 31 December 2022 Change (%)

Total assets (RMB) 5660116336.12 5689769802.18 -0.52%

Equity attributable to the listed

3904198540.564004240547.70-2.50%

company’s shareholders (RMB)

(II) Exceptional Gains and Losses

□ Applicable □ Not applicable

Unit: RMB

Item Q3 2023 Q1-Q3 2023 Note

Gain or loss on disposal of non-current assets (inclusive of

-799.452951.05

impairment allowance write-offs)

Government grants through profit or loss (exclusive of

Governme

government grants continuously given in the Company’s

0.00 123732.31 nt grants

ordinary course of business at fixed quotas or amounts as per the

government’s policies and standards) received

Gain/Loss incurred from contingency unrelated to the

172096.871816919.56

Company’s normal operating businesses.Gains on

fair-value

changes on

Gain or loss on fair-value changes on held-for-trading financial

investment

assets and liabilities & income from disposal of held-for-trading

s in

financial assets and liabilities and available-for-sale financial 2048046.94 5686654.29

monetary

assets (exclusive of the effective portion of hedges that arise in

fund and

the Company’s ordinary course of business)

other

investment

income

Non-operating income and expense other than the above -321.17 -38075.58

Less: Income tax effects -280.15 22151.95

Total 2219303.34 7570029.68 --

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

□Applicable □ Not applicable

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

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

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

□Applicable □ Not applicable

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

□ Applicable □ Not applicable

Operating revenue and net profit attributable to the listed company’s shareholders before exceptional gains and losses for Q1-Q3

2023 decreased 32.68% and 1304.53% respectively as compared to the same period of last year primarily driven by the decreased

property sales revenue.Net profit attributable to the listed company’s shareholders for Q1-Q3 2023 decreased 129.12% as compared to the same period of

last year primarily driven by the transfer of 100% of Shenzhen Property Management Co. Ltd. in the same period of last year and

the decreased property sales revenue in the current period.Net cash used in operating activities decreased 89.63% during Q1-Q3 2023 as compared to the same period of last year primarily

driven by the payment of land value added tax in the same period of last year as well as the gradual inflow of pre-sale revenue of

the Guangmingli project and the decreased investment in the Linxinyuan project in Huizhou City in the current period.II Shareholder Information

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

as Holdings of Top 10 Shareholders

Unit: share

Number of preference shareholders with resumed

Number of ordinary shareholders 43339 0

voting rights

Top 10 shareholders

Shares in pledge

Restricted

Nature of Shareholding Total shares marked or

Name of shareholder shares

shareholder percentage held frozen

held

Status Shares

Shenzhen Investment Holdings Co. State-owned

55.78%564353838

Ltd. corporation

Domestic non-

Shenzhen State-Owned Equity

state-owned legal 6.35% 64288426

Operation and Management Co. Ltd.person

Domestic natural

Yang Jianmin 1.09% 10986877

person

Domestic natural

Zhang Xiujuan 0.47% 4760400

person

Domestic natural

Wang Yulan 0.44% 4427191

person

Domestic natural

He Qiao 0.40% 4022359

person

Domestic natural

Pan Jun 0.39% 3916800

person

Hong Kong Securities Clearing Foreign legal

0.35%3541729

Company Ltd. person

Wang Zhengying Domestic natural 0.29% 2918100

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

person

Domestic natural

Zhang Zi 0.26% 2586400

person

Top 10 unrestricted shareholders

Shares by type

Name of shareholder Unrestricted shares held

Type Shares

Shenzhen Investment Holdings Co. RMB-denominated

564353838564353838

Ltd. ordinary stock

Shenzhen State-Owned Equity RMB-denominated

6428842664288426

Operation and Management Co. Ltd. ordinary stock

RMB-denominated

Yang Jianmin 10986877 10986877

ordinary stock

RMB-denominated

Zhang Xiujuan 4760400 4760400

ordinary stock

RMB-denominated

Wang Yulan 4427191 4427191

ordinary stock

RMB-denominated

3865473

ordinary stock

He Qiao 4022359

Domestically listed

156886

foreign stock

RMB-denominated

Pan Jun 3916800 3916800

ordinary stock

Hong Kong Securities Clearing RMB-denominated

35417293541729

Company Ltd. ordinary stock

RMB-denominated

Wang Zhengying 2918100 2918100

ordinary stock

RMB-denominated

Zhang Zi 2586400 2586400

ordinary stock

Among the top 10 shareholders of the Company Shenzhen State-Owned Equity

Operation and Management Co. Ltd. is the wholly-owned subsidiary of

Related or acting-in-concert parties among Shenzhen Investment Holdings Co. Ltd. The Company does not know whether

the shareholders above there exists related-party relationship among the other shareholders or whether

they are persons acting in concert as prescribed in the Administrative Measures

for the Acquisition of Listed Companies.Among the top 10 shareholders the third shareholder holds 9804200 shares of

the Company in his credit security account; the fourth shareholder holds

4760400 shares of the Company in his credit security account; the sixth

Top 10 shareholders engaged in securities

shareholder holds 3732000 shares of the Company in his credit security account;

margin trading

the ninth shareholder holds 2918100 shares of the Company in its credit security

account; the tenth shareholders holds 2497400 shares of the Company in its

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

□Applicable □ Not applicable

III Other Significant Events

□Applicable □ Not applicable

IV Quarterly Financial Statements

(I) Financial Statements

1. Consolidated Balance Sheet

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

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

Unit: RMB

Item 30 September 2023 1 January 2023

Current assets:

Monetary assets 364191991.31 197663949.74

Settlement reserve

Loans to other banks and financial

institutions

Held-for-trading financial assets 276503415.71 408154361.42

Derivative financial assets

Notes receivable 1536150.00

Accounts receivable 35827221.67 63580422.16

Receivables financing

Prepayments 762325.97 1163612.24

Premiums receivable

Reinsurance receivables

Receivable reinsurance contract reserve

Other receivables 15100732.65 42105050.33

Including: Interest receivable

Dividends receivable

Financial assets purchased under resale

agreements

Inventories 4293033713.17 4257109614.31

Contract assets

Assets held for sale

Current portion of non-current assets

Other current assets 43360746.55 36778641.42

Total current assets 5028780147.03 5008091801.62

Non-current assets:

Loans and advances to customers

Debt investments

Other debt investments

Long-term receivables

Long-term equity investments 93927.64 93927.64

Investments in other equity

13787820.0013839235.57

instruments

Other non-current financial assets

Investment property 548211054.29 566873915.07

Fixed assets 20295139.81 21425475.05

Construction in progress

Productive living assets

Oil and gas assets

Right-of-use assets 132855.29 232496.72

Intangible assets

Development costs

Goodwill

Long-term prepaid expense 1790037.93 2176221.53

Deferred income tax assets 47025354.13 77036728.98

Other non-current assets

Total non-current assets 631336189.09 681678000.56

Total assets 5660116336.12 5689769802.18

Current liabilities:

Short-term borrowings 26973544.76 51138077.62

Borrowings from the central bank

Loans from other banks and financial

institutions

Held-for-trading financial liabilities

Derivative financial liabilities

Notes payable

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

Accounts payable 396756133.63 434601559.67

Advances from customers 4871471.88 5465343.96

Contract liabilities 193363120.56 43533467.29

Financial assets sold under repurchase

agreements

Customer deposits and deposits from

other banks and financial institutions

Payables for acting trading of securities

Payables for underwriting of securities

Employee benefits payable 25381851.09 35724203.78

Taxes and levies payable 37272312.56 190951185.99

Other payables 556949129.04 574331340.84

Including: Interest payable 16535277.94 16535277.94

Dividends payable

Fees and commissions payable

Reinsurance payables

Liabilities directly associated with

assets held for sale

Current portion of non-current

30946196.666188794.43

liabilities

Other current liabilities 17223024.08 3882817.68

Total current liabilities 1289736784.26 1345816791.26

Non-current liabilities:

Insurance contract reserve

Long-term borrowings 185413437.60 54261000.00

Bonds payable

Including: Preference shares

Perpetual bonds

Lease liabilities 13772.23 53885.23

Long-term payables

Long-term employee benefits payable

Provisions

Deferred income

Deferred income tax liabilities 3096348.02 3096348.02

Other non-current liabilities

Total non-current liabilities 188523557.85 57411233.25

Total liabilities 1478260342.11 1403228024.51

Owners’ equity:

Share capital 1011660000.00 1011660000.00

Other equity instruments

Including: Preference shares

Perpetual bonds

Capital reserves 978244910.11 978244910.11

Less: Treasury stock

Other comprehensive income 24027379.52 25926720.85

Specific reserve

Surplus reserves 275253729.26 275253729.26

General reserve

Retained earnings 1615012521.67 1713155187.48

Total equity attributable to owners of the

3904198540.564004240547.70

Company as the parent

Non-controlling interests 277657453.45 282301229.97

Total owners’ equity 4181855994.01 4286541777.67

Total liabilities and owners’ equity 5660116336.12 5689769802.18

Legal representative: Tang Xiaoping Chief Financial Officer: Wang Jianfei Head of the financial department: Zhou Hongpu

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

2. Consolidated Income Statement for Q1~Q3

Unit: RMB

Item Q1~Q3 2023 Q1~Q3 2022

1. Revenues 354316805.85 526354062.13

Including: Operating revenue 354316805.85 526354062.13

Interest income

Insurance premium income

Fee and commission income

2. Costs and expenses 404813647.75 513906330.96

Including: Cost of sales 289093965.63 366479949.49

Interest expense

Fee and commission expense

Surrenders

Net insurance claims paid

Net amount provided as insurance contract reserve

Expenditure on policy dividends

Reinsurance premium expense

Taxes and levies 63813731.19 90272885.10

Selling expense 17817886.71 14656389.00

Administrative expense 34809213.29 47428250.80

R&D expense

Finance costs -721149.07 -4931143.38

Including: Interest expense

Interest income 1303132.63 3618913.93

Add: Other income 121159.27 493363.45

Return on investment (“-” for loss) 2516011.35 165075180.97

Including: Share of profit or loss of joint ventures and

associates

Income from the derecognition of financial assets at

amortized cost (“-” for loss)

Exchange gain (“-” for loss)

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

Gain on changes in fair value (“-” for loss) 4987562.50 6896129.52

Credit impairment loss (“-” for loss) 529176.78 -564302.42

Asset impairment loss (“-” for loss) -532397.57

Asset disposal income (“-” for loss)

3. Operating profit (“-” for loss) -42342932.00 183815705.12

Add: Non-operating income 19661.14 844371.06

Less: Non-operating expense 52212.63 254973.93

4. Gross profit (“-” for loss) -42375483.49 184405102.25

Less: Income tax expense -2092269.34 62719392.70

5. Net profit (“-” for net loss) -40283214.15 121685709.55

5.1 By operating continuity

5.1.1 Net profit from continuing operations (“-” for net loss) -40283214.15 112040552.14

5.1.2 Net profit from discontinued operations (“-” for net loss) 9645157.41

5.2 By ownership

5.2.1 Net profit attributable to shareholders of the Company as

-36431405.81125120961.59

the parent (“-” for net loss)

5.2.1 Net profit attributable to non-controlling interests (“-” for

-3851808.34-3435252.04

net loss)

6. Other comprehensive income net of tax -2691309.51 -9374622.80

Attributable to owners of the Company as the parent -1899341.33 -6886381.58

6.1 Items that will not be reclassified to profit or loss -51415.57 -1080485.41

6.1.1 Changes caused by remeasurements on defined benefit

schemes

6.1.2 Other comprehensive income that will not be reclassified

to profit or loss under the equity method

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

6.1.3 Changes in the fair value of investments in other equity

-51415.57-1080485.41

instruments

6.1.4 Changes in the fair value arising from changes in own

credit risk

6.1.5 Other

6.2 Items that will be reclassified to profit or loss -1847925.76 -5805896.17

6.2.1 Other comprehensive income that will be reclassified to

profit or loss under the equity method

6.2.2 Changes in the fair value of other debt investments

6.2.3 Other comprehensive income arising from the

reclassification of financial assets

6.2.4 Credit impairment allowance for other debt investments

6.2.5 Reserve for cash flow hedges

6.2.6 Differences arising from the translation of foreign

-1847925.76-5805896.17

currency-denominated financial statements

6.2.7 Other

Attributable to non-controlling interests -791968.18 -2488241.22

7. Total comprehensive income -42974523.66 112311086.75

7.1 Attributable to owners of the Company as the parent -38330747.14 118234580.01

7.2 Attributable to non-controlling interests -4643776.52 -5923493.26

8. Earnings per share

8.1 Basic earnings per share -0.0360 0.1237

8.2 Diluted earnings per share -0.0360 0.1237

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

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

3. Consolidated Cash Flow Statement for Q1~Q3

Unit: RMB

Item Q1~Q3 2023 Q1~Q3 2022

1. Cash flows from operating activities:

Proceeds from sale of commodities and rendering of services 416750824.92 340192663.39

Net increase in customer deposits and deposits from other banks and

financial institutions

Net increase in borrowings from the central bank

Net increase in loans from other financial institutions

Premiums received on original insurance contracts

Net proceeds from reinsurance

Net increase in deposits and investments of policy holders

Interest fees and commissions received

Net increase in loans from other banks and financial institutions

Net increase in proceeds from repurchase transactions

Net proceeds from acting trading of securities

Tax and levy rebates 1186861.59 130983924.40

Cash generated from other operating activities 29129487.96 41958184.88

Subtotal of cash generated from operating activities 447067174.47 513134772.67

Payments for commodities and services 123719069.83 278878904.10

Net increase in loans and advances to customers

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

financial institutions

Payments for claims on original insurance contracts

Net increase in loans to other banks and financial institutions

Interest fees and commissions paid

Policy dividends paid

Cash paid to and for employees 53087639.58 68683129.50

Taxes and levies paid 201016409.51 576441841.05

Cash used in other operating activities 132577463.14 199743887.60

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

Subtotal of cash used in operating activities 510400582.06 1123747762.25

Net cash generated from/used in operating activities -63333407.59 -610612989.58

2. Cash flows from investing activities:

Proceeds from disinvestment

Return on investment 2354519.56 10527896.61

Net proceeds from the disposal of fixed assets intangible assets and

3537.602907.50

other long-lived assets

Net proceeds from the disposal of subsidiaries and other business

157394714.05

units

Cash generated from other investing activities 136800000.00 115000000.00

Subtotal of cash generated from investing activities 139158057.16 282925518.16

Payments for the acquisition of fixed assets intangible assets and

599579.46174849.24

other long-lived assets

Payments for investments

Net increase in pledged loans granted

Net payments for the acquisition of subsidiaries and other business

units

Cash used in other investing activities

Subtotal of cash used in investing activities 599579.46 174849.24

Net cash generated from/used in investing activities 138558477.70 282750668.92

3. Cash flows from financing activities:

Capital contributions received

Including: Capital contributions by non-controlling interests to

subsidiaries

Borrowings received 155986610.82 33440000.00

Cash generated from other financing activities

Subtotal of cash generated from financing activities 155986610.82 33440000.00

Repayment of borrowings

Interest and dividends paid 65137494.78 89217187.50

Including: Dividends paid by subsidiaries to non-controlling

interests

Cash used in other financing activities

Subtotal of cash used in financing activities 65137494.78 89217187.50

Net cash generated from/used in financing activities 90849116.04 -55777187.50

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

154319.591326374.63

equivalents

5. Net increase in cash and cash equivalents 166228505.74 -382313133.53

Add: Cash and cash equivalents beginning of the period 190365069.48 612293635.15

6. Cash and cash equivalents end of the period 356593575.22 229980501.62

(II) Adjustments to Financial Statement Items at the Beginning of the Year of the First Implementation of

the New Accounting Standards Implemented since 2023

□Applicable □ Not applicable

(III) Independent Auditor’s Report

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

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

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

Board of Directors

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

28 October 2023

10