ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
SHENZHEN PROPERTIES & RESOURCES
DEVELOPMENT (GROUP) LTD.
ANNUAL REPORT 2021
(Announcement No. 2022-09)
March 2022
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
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 Properties & Resources Development
(Group) 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.
Liu Shengxiang, the Company’s legal representative, Cai Lili, the Company’s head of
financial affairs, and Liu Qiang, 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.
The Company is subject to the information disclosure requirements for the real estate
industry in the Self-Disciplinary and Regulatory Guideline No. 3 of the Shenzhen Stock
Exchange for Listed Companies—Industry-specific Information Disclosure.
The Company has described in detail in this Report the possible risks facing it, along with
countermeasures. Please refer to the section headed “Prospects” of “Part III Management
Discussion and Analysis” of this Report.
The Board has approved a final dividend plan as follows: based on the share capital of
595,979,092 shares, a cash dividend of RMB6.8 (tax inclusive) per 10 shares is to be
distributed to the shareholders, with no bonus issue from either profit or capital reserves.
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.
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Table of Contents
Part I Important Notes, Table of Contents and Definitions........................................................... 1
Part II Corporate Information and Key Financial Information................................................... 5
Part III Management Discussion and Analysis..............................................................................10
Part IV Corporate Governance.......................................................................................................45
Part V Environmental and Social Responsibility.......................................................................... 69
Part VI Significant Events............................................................................................................... 72
Part VII Share Changes and Shareholder Information................................................................88
Part VIII Preferred Shares.............................................................................................................. 98
Part IX Bonds................................................................................................................................... 99
Part X Financial Statements..........................................................................................................100
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Documents Available for Reference
I. The financial statements with the signatures and stamps of the Company’s legal representative,
head of financial affairs and head of the financial department;
II. The original of the Independent Auditor’s Report with the stamp of the CPA firm and the
signatures and stamps of the certified public accounts; and
III. The originals of all the Company’s documents and announcements disclosed to the public in the
Reporting Period.
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Definitions
Term Definition
ShenZhen Properties & Resources Development (Group) Ltd. and its
The “Company”, the “Group”, “SZPRD” or “we”
consolidated subsidiaries, except where the context otherwise requires
SIHC Shenzhen Investment Holdings Co., Ltd.
Huangcheng Real Estate Shenzhen Huangcheng Real Estate Co., Ltd.
Dongguan Company Dongguan ITC Changsheng Real Estate Development Co., Ltd.
Xuzhou Company SZPRD Xuzhou Dapeng Real Estate Development Co., Ltd.
Yangzhou Company SZPRD Yangzhou Real Estate Development Co., Ltd.
Urban Renewal Company Shenzhen SZPRD Urban Renewal Co., Ltd.
Rongyao Real Estate Shenzhen Rongyao Real Estate Development Co., Ltd.
ITC Property Management Shenzhen International Trade Center Property Management Co., Ltd.
ITC Technology Park Shenzhen ITC Technology Park Service Co., Ltd.
Guomaomei Life Shenzhen Guomaomei Life Service Co., Ltd.
Commercial Operation Company Shenzhen SZPRD Commercial Operation Co., Ltd.
Guomao Catering Shenzhen Guomao Catering Co., Ltd.
Supervision Company Shenzhen Property Engineering and Construction Supervision Co., Ltd.
Wuhe Company Shenzhen Wuhe Industry Investment Development Co., Ltd.
Shenzhen Property Management Shenzhen Property Management Co., Ltd.
Foreign Trade Property Management Shenzhen Foreign Trade Property Management Co., Ltd.
Shenfubao Property Development Shenzhen Shenfubao Property Development Co., Ltd.
Hydropower Company Shenzhen Shenfubao Hydropower Municipal Service Co., Ltd.
Security Service Company Shenzhen Free Trade Zone Security Service Co., Ltd.
FMC Shenzhen Facility Management Community Technology Co., Ltd.
Expressed in the Chinese currency of Renminbi, expressed in tens of
RMB, RMB’0,000, RMB’00,000,000
thousands of Renminbi, expressed in hundreds of millions of Renminbi
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Part II Corporate Information and Key Financial Information
I Corporate Information
Stock name PRD, PRD-B Stock code 000011, 200011
Changed stock name (if any) N/A
Stock exchange for stock
Shenzhen Stock Exchange
listing
Company name in Chinese 深圳市物业发展(集团)股份有限公司
Abbr. 深物业集团
Company name in English (if
ShenZhen Properties & Resources Development (Group) Ltd.
any)
Abbr. (if any) SZPRD
Legal representative Liu Shengxiang
39/F and 42/F, International Trade Center, Renmin South Road, Luohu District, Shenzhen,
Registered address
Guangdong Province, P.R.China
Zip code 518014
Past changes of registered
N/A
address
16/F, 20/F, 39/F and 42/F, International Trade Center, Renmin South Road, Luohu District,
Office address
Shenzhen, Guangdong Province, P.R.China
Zip code 518014
Company website www.szwuye.com.cn
Email address 000011touzizhe@szwuye.com.cn
II Contact Information
Board Secretary Securities Representative
Name Zhang Gejian Ding Minghua and Chen Qianying
20/F, International Trade Center, Renmin South 39/F, International Trade Center, Renmin South Road,
Address Road, Luohu District, Shenzhen, Guangdong Luohu District, Shenzhen, Guangdong Province,
Province, P.R.China P.R.China
Tel. 0755-82211020 0755-82211020
Fax 0755-82210610 82212043 0755-82210610 82212043
Email address 000011touzizhe@szwuye.com.cn 000011touzizhe@szwuye.com.cn
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
III Media for Information Disclosure and Place where this Report Is Lodged
Stock exchange website where this Report is disclosed The Shenzhen Stock Exchange: http://www.szse.cn
For A-stock investors: Securities Times
Media and website where this Report is disclosed For B-stock investors: Ta Kung Pao (HK)
www.cninfo.com.cn
Board Office, 39/F, International Trade Center, Renmin South Road, Luohu
Place where this Report is lodged
District, Shenzhen, Guangdong Province, P.R.China
IV Change to Company Registered Information
Unified social credit code No change
Change to principal activity of the
No change
Company since going public (if any)
On 29 September 2004, the State-Owned Assets Supervision and Administration
Commission of Shenzhen Municipality (“SASAC Shenzhen”) decided to incorporate
Shenzhen Investment Holdings Co., Ltd. (“SIHC”) to include Shenzhen Investment
Management Co., Ltd. (“SIM”, the former controlling shareholder of the Company)
and Shenzhen Construction Investment Holdings Corporation (“SCIHC”). SCIHC and
SIM hold 323,796,324 and 56,582,573 shares respectively in the Company,
Every change of controlling shareholder
representing a combined stake of 63.82%.
since incorporation (if any)
On 19 October 2018, the Company was notified by its actual controlling shareholder
SIHC that it had received the Confirmation of Securities Transfer Registration from
China Securities Depository and Clearing Co., Ltd. (Shenzhen branch), marking the
completion of the equity transfer to SIHC. As such, SIHC has become the controlling
shareholder of the Company.
The controlling shareholder remained unchanged during the Reporting Period.
V Other Information
The independent audit firm hired by the Company:
Name Baker Tilly China Certified Public Accountants LLP
9/F, Zhonghe Plaza, 2002 Shennan Middle Road, Futian District, Shenzhen, Guangdong
Office address
Province, China
Accountants writing signatures Li Ming, Chen Zihan, and Xu Ping
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
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
VI Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
2021-over-2020
2021 2020 2019
change (%)
Operating revenue (RMB) 4,491,965,643.71 4,104,374,646.02 9.44% 3,961,669,942.44
Net profit attributable to the listed
1,003,969,842.33 798,572,121.74 25.72% 817,805,780.12
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before 983,778,096.90 788,377,322.39 24.79% 695,675,201.19
exceptional gains and losses (RMB)
Net cash generated from/used in
-1,813,313,008.58 385,497,782.12 -570.38% 939,789,565.96
operating activities (RMB)
Basic earnings per share (RMB/share) 1.6846 1.3399 25.73% 1.3722
Diluted earnings per share
1.6846 1.3399 25.73% 1.3722
(RMB/share)
Weighted average return on equity (%) 24.69% 23.47% 1.22% 20.46%
Change of 31
December 2021
31 December 2021 31 December 2020 31 December 2019
over 31 December
2020 (%)
Total assets (RMB) 14,581,897,151.76 12,207,356,912.54 19.45% 10,772,491,740.53
Equity attributable to the listed
4,486,110,790.39 3,727,917,440.03 20.34% 3,147,949,009.38
company’s shareholders (RMB)
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 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
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
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
No difference for the Reporting Period.
2. Net Profit and Equity under CAS and Foreign Accounting Standards
□ Applicable √ Not applicable
No difference for the Reporting Period.
VIII Key Financial Information by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 891,026,732.66 1,649,838,406.59 640,625,548.94 1,310,474,955.52
Net profit attributable to the
214,420,219.16 461,955,304.59 98,290,796.67 229,303,521.91
listed company’s shareholders
Net profit attributable to the
listed company’s shareholders
208,303,080.57 461,555,410.64 97,412,536.02 216,507,069.67
before exceptional gains and
losses
Net cash generated from/used in
83,213,087.80 1,054,357,692.93 -1,680,581,358.73 -1,270,302,430.58
operating 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 2021 2020 2019 Note
Gain or loss on disposal of non-current assets
-62,170.29 -322,603.77 47,015.23
(inclusive of impairment allowance write-offs)
Government subsidies charged to current profit Mainly
or loss (exclusive of government subsidies 23,923,655.59 7,100,657.34 2,410,184.82 government
consistently given in the Company’s ordinary subsidy for
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
course of business at fixed quotas or amounts as Company
per governmental policies or standards) Headquarters
Current profit or loss on subsidiaries obtained in
business combinations involving enterprises
118,680,871.93
under common control from the
period-beginning to combination dates, net
Gain or loss on contingencies that do not arise in
-2,396,947.00
the Company’s ordinary course of business
Reversed portions of impairment allowances for
receivables which are tested individually for 19,900.00
impairment
Non-operating income and expense other than
2,915,682.88 9,089,508.74 2,048,751.21
the above
Other gains and losses that meet the definition
169,262.03 94,284.37 91,337.56
of exceptional gain/loss
Less: Income tax effects 6,749,597.21 3,470,226.55 1,146,936.51
Non-controlling interests effects (net of tax) 5,087.57 -80,226.22 645.31
Total 20,191,745.43 10,194,799.35 122,130,578.93 --
Particulars about 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
No such cases for the Reporting Period.
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
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 Self-Disciplinary and
Regulatory Guideline No. 3 of the Shenzhen Stock Exchange for Listed Companies—Industry-specific Information Disclosure.
(I) Macro-economic situation and industry development status
In 2021, the macro-economic operation continued the development trend of overall stability and progress, leading macroeconomic
indicators remained within a reasonable range and the structural reform on the supply side was continuously promoted. Besides,
reform and opening up continued to deepen, people's living standards and quality kept improving and an increasing number of
positive factors were driving high-quality development. Since the principle that "houses are for living in, not for speculating on" was
first put forward at the Central Economic Work Conference in 2016, the central government's position on this principle has been
deepened constantly. To prevent risks in the real estate sector, the real estate market has been under strict regulation over the past few
years, and relevant policies have exerted a series of effects on the demand side, the supply side and the financing side of the market,
posing higher challenges to the operating capabilities of real estate enterprises. During the Reporting Period, as the main stance on
real estate policies, including the principle that "houses are for living in, not for speculating on" and "three stabilities", remained
unchanged, the real estate market experienced a transition from the high popularity in the first half of the year to the profound
adjustment in the second half, with the scale remaining high throughout the year.
The year-round sales were high in the first half and low in the second and the sales in the second half continued to decline.
According to the data from the National Bureau of Statistics, the sales area of commercial housing throughout 2021 was 1,794
million square meters nationwide, a year-on-year increase of 1.9%, and the sales amount was RMB18.19 trillion, up 4.8% from the
previous year. However, such an increase was mainly attributable to the good sales in the first half of the year while sales have
dropped significantly since the second half. Specifically, the sales of commercial housing continued the boom of the second half of
2020, with sustained double-digit growth in both sales amount and sales area, and the average sales price remained above
RMB10,000 per square meter. The sales of the new housing market plummeted after June and the sales area and sales amount
suffered double-digit negative growth from August and maintained such a trend until the end of the year.
New starts weakened and development investment continued to fall. The development investment completed throughout the year
was RMB14.7 trillion, an increase of 4.4% year-on-year. It remained low in the second half of the year and began to show negative
growth in September. The development investment completed in December saw a year-on-year decrease of 13.9%. Real estate
enterprises had a low willingness to start construction due to great financial pressure and stringent regulation of advance sales. The
area of new starts in 2021 was 1,989 million square meters, a decrease of 11.4% year-on-year, marking the largest drop since 2016.
With the slowdown in land acquisition, the land market cooled rapidly in the second half of the year. The overall land
acquisition momentum of real estate enterprises slackened. Throughout the year, land transactions amounted to RMB1.78 trillion, up
2.8% from the previous year, and the land acquisition area was 216 million square meters, down 15.5% from the previous year. There
was a pattern of "first hot, then cold and finally stable" in the centralized land supply of 22 cities. Due to the sales boom and loose
financing environment in the first half of the year, real estate enterprises had a strong willingness to acquire land and competed
fiercely for land. As a result, the overall performance of the first group of centralized land supply was fiery, and its turnover and
premium rate ranked first among the three groups of centralized land supply, much higher than the latter two. Affected by factors
such as the dramatic tightening of financing regulation, the cliff-like decline in sales caused by tightening mortgage limits, as well as
insufficient market confidence due to frequent credit incidents of real estate enterprises, the second group of centralized land supply
encountered a cold season. Although the land supply plans were collectively halted and postponed in many places, the rates of
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
canceled auctions and abortive auctions still increased significantly on the whole and the transaction premium rate plummeted. With
the gradual loosening of central policies at the end of Q3, the slight recovery in market confidence, the moderate relaxation of land
transfer rules, the third group of centralized land supply was in a stable state. The transaction premium rate was the lowest for the
whole year, but the decline was not significant and the rate of abortive auctions dropped as well.
Regulation has not been relaxed and no obvious improvement in funds has been seen. Due to the appearance of effects from
policies such as loan concentration management and the gradual exposure of credit risks in real estate enterprises, their financing
channels shrank completely, the extension of mortgage loans was under negative influence, and the sales payment collection of real
estate enterprises was negatively affected to varying degrees. According to the data from the National Bureau of Statistics, the
amount of funds collected by real estate enterprises in the whole year was RMB20.11 trillion, up 4.2% from the previous year,
bringing the scale to an all-time high. But the growth rate hit a new low in nearly six years and declined month by month. The
monthly value of the collected funds showed negative growth year-on-year from the second half of 2021 and the year-on-year decline
in September reached up to 11.2%. Since the end of September, the central government and ministerial departments continuously
released signals of stability maintenance, the credit environment saw marginal improvements and the financing environment for real
estate enterprises gradually improved. However, the growth of collected funds did not perform well at the end of the year. This is
because it takes time for the marginal improvements in the credit environment to reach the market side, as well as for the extension of
funds such as mortgage loans and development loans.
(II) Policy environment of the industry
In 2021, upholding the fundamental principle that "houses are for living in, not for speculating on" and aiming at "stabilizing house
prices, land prices and expectations", policy adjustments were underway depending on market popularity. When the market was high
in the first half of the year, policies were comprehensively tightened and increased. After a continuous downward trend, there was
marginal relaxation and the release of some benefits in the second half. From the perspective of the supply and demand sides, the
demand side focused on the strengthening of credit regulation, price control and the optimization and upgrading of policies restricting
housing purchases and loans; the supply side focused on land and financial control, for risk mitigation and deleveraging purposes.
The demand side focused on the strengthening of credit regulation, price control and the optimization and upgrading of
policies restricting housing purchases and loans. (1) The strengthening of credit regulation. Illegal inflows of funds into the real
estate market were under scrutiny. To prevent business loans from entering the market, many cities scrutinized the use of illegal funds
for down payments and mortgage loans. After the coming into force of the policy on property loan concentration management, some
banks and cities suffered tight mortgage limits, the mortgage loan period of property buyers was lengthened, the mortgage loan rate
rose and qualification requirements were raised. (2) Price control. "Stability" was more valued in housing price control. Firstly,
popular cities extended the control of excessive price increases from new houses to second-hand ones. Cities such as Shenzhen,
Shanghai, Wuxi and Shaoxing successively established a price reference mechanism for second-hand houses, which required banks
to extend second-hand housing loans at the reference price. Such a mechanism was designed to restrict the surge in second-hand
housing prices and to crack down on price inversion of old and new housing. Secondly, the property markets in tier-three and
tier-four cities performed differentially. House prices in some cities underwent a marked drop and developers slashed prices.
Following the downward trend that appeared in the market in July, Heze, Yueyang and Kunming issued executive orders to limit
price declines in succession, under which most of sales shall be based on the filing price for online sales and the decline shall not be
greater than 10%. (3) The optimization and upgrading of policies restricting housing purchases and loans. Popular cities tightened
policies mainly through patching or restricting the entry of investment-oriented housing demands through adding conditions for
house purchase. For instance, Haikou, Xi'an, Hangzhou, Dongguan, Guangzhou and Nanjing added conditions such as personal
income tax or certificate of social insurance payment. Xiamen, Hefei, Chengdu, Hangzhou and Shanghai stipulated that house
purchase qualifications were required to obtain houses through judicial auctions. Wuhan launched the ticket-based house purchase
policy. Dongguan increased the periods of social security payment of house buyers with non-local household registration.
The supply side focused on land and financial control. (1) In terms of land, 22 cities started to implement the "Two Centralization"
(centralized announcement and centralized transfer) policy for residential land supply from 2021, which required that, in principle,
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
the number of land transfers shall not exceed three times in a year. Apart from the first group of 22 pilot cities that completed
centralized land supply within the year, some other cities also adopted the "Two Centralization" method for land transfer. As an
important process of the long-acting real estate mechanism, centralized land supply is mainly designed to stabilize house prices by
stabilizing land prices and requires real estate enterprises to raise more funds for land acquisition in a short period of time, bringing a
bigger test to the capital chain of such enterprises. When the second round of centralized land supply began, private enterprises were
unable to do much at the investment end due to credit challenges and financial pressures and chose not to participate. Central and
state-owned enterprises predominated the market and some local state-owned enterprises also emerged from time to time. (2) In
terms of financial control, policies continued to tighten before September and the financing of real estate enterprises was restricted by
constant patching. On December 31, 2020, the PBOC and the China Banking and Insurance Regulatory Commission (CBIRC) issued
the loan concentration assessment standards to limit the existing scale of real estate loans in banks. Real estate enterprises have found
their development financing significantly restrictive since 2021. On March 22, 2021, the PBOC held a symposium on optimizing and
adjusting the credit structure of 24 major banks nationwide, emphasizing "maintaining the continuity, consistency and stability of real
estate financial policies and implementing the financial prudential management policy of real estate". The Asset Management
Association of China (AMAC) suspended the filing of real estate supply chain products by fund subsidiaries in May and the approval
and issuance of asset-backed securities (ABS) slowed down significantly after August. Since September, many real estate enterprises
suffered liquidity difficulties and marginal relaxation of real estate regulation began to appear. From late September to November, the
market was dominated by the relaxation of the PBOC, the CBIRC and other financial regulators, and development loans, mortgage
loans and bond financing gradually recovered. Additionally, local governments and housing construction departments strengthened
the regulation of advance sale funds to guarantee delivery. Since December, financial institutions, housing construction departments
and local governments made a joint statement to resolve the liquidity crisis.
More than 400 real estate regulatory policies were issued by provinces and cities nationwide in 2021. The regulation policies of the
real estate market have seen constant improvements and upgrading and produced significant effects. Looking forward to 2022, the
central government will still uphold the general principle that "houses are for living in, not for speculating on" and try to achieve
"three stabilities". At a time when the adjustment trend of the real estate market continues to deepen, the credit environment is
expected to improve significantly but is less likely to relax substantially. Moreover, the pilot work on real estate tax reform will be
postponed, which will, in the short term, or further affect the expectations of house buyers, and the property market will embrace a
foreseeable recovery.
(III) Regional market pattern
From the perspective of regional markets, the Shenzhen real estate market continued to maintain the development trend of increased
regulation and strengthened supervision in 2021. In February, Shenzhen issued a guide price for second-hand houses, disguised as an
increase in the down payment ratio for second-hand house transactions. The second-hand house market transactions and price
increases were both suppressed. In March, Shenzhen Municipal Bureau of Housing and Urban-Rural Development required all
residential projects to be listed by the "iShenzhen" for registration and online house selection. At the same time, Shenzhen fully
implemented the points ranking policy for new subscriptions, strictly investigated the source of funds for down payments and
cracked down on acts such as crowdfunding and holding (house purchase). Additionally, business loans, mortgage loans and other
illegal funds were stringently prohibited from flowing into the property market. The strict implementation of various policies reduced
the financial investment attributes of real estate, and the market rapidly cooled with a strong wait-and-see mood.
(IV) Industry position of the Company
SZPRD arises together with Shenzhen's reform and opening up and devotes itself to real estate, property management and other
fields for nearly four decades. It has achieved gradual improvements in its comprehensive capacity, brand influence and industry
position and won many honors and awards over the years. During the Reporting Period, the Company won the title of "2021
Shenzhen Top 500 Enterprises" and ranked 170th on the list, was appraised as a Shenzhen municipal headquarters enterprise for
three consecutive years and won the top award of contribution award. ITC Property Management, a subsidiary of the Company, won
the following awards: "2021 Top 100 Enterprises in Property Service Capacity in the Greater Bay Area", "2021 Top 5 Enterprises in
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Property Service Capacity in Industrial Parks of the Greater Bay Area", "2021 Top 100 China Property Service Enterprises with
Comprehensive Strength", "2021 Top 100 China Property Service Enterprises in Brand Value", "2021 Quality Benchmark Enterprise
in Guangdong Province" and "2021 China Property Service Brand Characteristic Enterprise - A World-leading Property Management
Ecological Operator". The Shenzhen International Trade Center Building was listed in the first group of Shenzhen historical
buildings announced by the People's Government of Shenzhen Municipality. The historical exhibition of Shenzhen International
Trade Center was selected as a case for the development and utilization of national economic and technological archives resources in
2021 by the National Archives Administration of China. These awards and honors demonstrated the Company's comprehensive
strength and reflected the high recognition of the Company's comprehensive strength by the industry, customers and government
departments.
During the Reporting Period, despite the changes in the real estate industry, the Company gained a comparative advantage with stable
operation status and good financial position, seized the opportunities of the land market and won the bid for the land plots of
2021WR023 in Humen Town of Dongguan and A606-0258 in Guangming District of Shenzhen. It marked a breakthrough in the
Group's acquisition of zero land resources from the secondary market over the years and provided a solid guarantee for the Group's
sustainable development during the "14th Five-year Plan" period, as well as symbolized the full opening of the era of complete
marketization of the Group's development business.
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 Self-Disciplinary and
Regulatory Guideline No. 3 of the Shenzhen Stock Exchange for Listed Companies—Industry-specific Information Disclosure.
(I) Core Business Overview
Established in 1982, the Company was originally known as "Luohu Engineering and Construction Headquarters" and renamed
"Shenzhen Municipal Property Development Corporation" in August 1985. The Company was determined as the second batch of
pilot units for joint-stock reform of state-owned enterprises in 1988. Approved by the municipal government, the Company renamed
to ShenZhen Properties & Resources Development (Group) Ltd. in 1990. The stock of the group company (stock name: SZPRD, A/B;
stock code: 000011, 200011) was officially listed in Shenzhen Stock Exchange in March 1992.
The Company contracted and built Shenzhen International Trade Center Building as Party A and created, planned, and organized the
world-famous "Shenzhen Speed". The building was the place where Chairman Deng Xiaoping gave talks in his inspection to the
south. SZPRD came into being because of the building and has risen amid the Reform and Opening up campaign. Emerging and
growing together with Shenzhen, a city of miracles, the Company has been “a loyal practitioner of the spirit of the ox” and overcome
difficulties in proposing new services in the new era. In the past four decades of trials and hardships, generations of SZPRD
employees have manifested the enterprise spirit of "going ahead and reforming" and centered on the functional positioning as state
assets of "serving national economic and social development, the city, the industry, and the people". The Company has adhered to the
original aspiration and striven ahead to be a pioneer. Therefore, it has made remarkable achievements in development speed and
quality. So far, the Company has grown into a large comprehensive industrial group from the project company that built Shenzhen
International Trade Center Building. In the new era, the Company sizes up the situation, seizes the momentum and forges ahead
toward the goal and vision of becoming a "leading smart operator of industry-city space in China".
The year 2021 is the opening year of the 14th Five-Year Plan. During the Reporting Period, facing the abrupt COVID-19 and deep
regulation and control in real estate, the Company faced up to the difficulties and continued to make efforts in four business sectors,
including industry-city space development, property management services, industrial ecosystem operation, and main business
ecosystem investment in its main business. The Company endeavored to further consolidate and highlight its advantages of
industry-city integration and the whole industry chain through expanding the main business and making breakthroughs.
1. Industrial & urban space development
In terms of the space development segment, the Company is specialized in developing the residence, the hi-end apartment, the office
13
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
building, and the industrial park and has developed a batch of brand projects, including Shenzhen International Trade Center Building,
Huanggang Port, Tian'an International Building, Qianhai Gangwan Garden, and Golden Collar Holiday. Based on its present real
estate development business, the Company will improve its existing portfolio and plan for new businesses. It will engage a number of
subsidiaries in property development and urban renewals, including Huangcheng Real Estate, Rongyao Real Estate, the Urban
Renewal Company, Dongguan Company, Xuzhou Company, and Yangzhou Company, strengthen capital operation via the listing
platform, and make a reasonable layout of the city space development segment. In the Reporting Period, SZPRD made multiple
efforts for this segment. For instance, it expanded its land bank, steadily advanced the project development inside and outside
Shenzhen, accelerated the sales of projects in Xuzhou, and Yangzhou, and sped up the recovery of investment. Moreover, it focused
on the development and construction of industry-city complexes and accelerated to create an integrated and co-existing model for the
development of boutique urban residences and high-end industry space.
2. Property management services
The Company's property management segment takes ITC Property Management as its platform. As China’s first batch of first-class
qualified enterprises in property management, ITC Property Management, after more than 30 years of development, has become a
domestic first-class property service provider with diversified business capabilities and technological strength, and has been awarded
"Top 100 National Property Management Enterprises" and "Excellent Enterprise of Property Management in China's Industrial
Parks" for many years in a row. The projects under its management are all over the country, and its business radiates to various
regions in China, such as South China, Southwest China, East China and North China, as well as the China-Vietnam Cooperation
Zone in Vietnam. The Company's existing business has covered industrial parks, cultural tourism scenic spots, government agencies,
rail transportation, housing, hospitals, schools, hotels and other various business models, and is planning to develop the business of
grassroots social governance. The Company collaborated with the government to create a safe, harmonious, civilized and orderly
urban environment, basically forming a pattern of integrated development of multiple business models. There are more than 20
subsidiaries under ITC Property Management, and with the functional departments of the headquarters as the platform, it has actively
built three centers of "market, empowerment and supervision", and formed three business centers and profit centers of specialized
business model companies, specialized companies and companies in other regions, so as to continuously and effectively realize the
new pattern of coordinated development of "1+1>2". During the Reporting Period, through its own marketing efforts and M&As,
ITC Property Management saw an addition of over 7,000,000 square meters to its property management business, with the total
managed area exceeding 30,000,000 square meters. In particular, the industrial park area has reached 10,000,000 square meters,
making the company one of the top property management provider for high-end industrial parks in China.
3. Industrial ecosystem operation
With respect to the industrial ecosystem operation segment, the Company gave full play to its foundation in the three basic industries,
namely, real estate development, property management, and leasing and the advantage of the whole industry chain, focused on the
two major strategies of “value-added operation of existing assets” and “light-asset operation output”, and deepened internal and
external strategic cooperation. It is committed to creating a closed loop of the whole industrial ecosystem, covering project
development services, park operation services, and supporting rental operations, and keeping improving the space service and rental
ecosystem in the industrial park. A unique and mature business development model has been put in place with the capability and
experience of the whole chain of planning, dismantling, construction control, business invitation, operation, and on-site management
with respect to various assets. The Company is expediting the stock taking and assessment of its properties in stock and strengthening
the management over them. In the future, it will gradually expand the scope of leasing and raise the development capability of
property rental. Moreover, the Company gradually shifts the focus of industrial ecosystem operation to sci-tech parks, provides
supporting services covering the whole value chain, such as the import of industrial ecosystem, project development services, and
park operation services, and serves the role of "space service provider" centering on sci-tech parks.
4. Other business
In the Reporting Period, the Company's businesses also included catering service and project supervision service. The catering
service is operated by Shenzhen Guomao Catering Co., Ltd. Guomao Catering Co., Ltd., established in 1986, became famous at
14
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
home and abroad, as it was the place where President Deng Xiaoping gave talks during his inspection to the south in 1992. Since its
establishment, it has received more than 600 domestic and overseas political VIPs, famous people, and numerous domestic and
overseas guests, with its reputation spreading all over the world. The project supervision service is handled by the subordinated
supervision company of the Group. The company has the Grade A supervision qualification of building works of the Ministry of
Housing and Urban-Rural Development (MOHURD). It was originally known as Shenzhen Property Engineering Management
Department, and takes part in the construction and management work of Shenzhen International Trade Center Building. It is a
witness of the whole process of "Shenzhen speed", and mainly serves for the development project of the Group.
(II) Business Review for the Company in 2021
2021 is the opening year of the comprehensive implementation of the 14th Five-Year Plan. The Company closely focused on the
implementation of the key work plans formulated at the beginning of the year, based on "long-term goals, medium-term expectations,
short-term results" to promote the overall efficiency of long-term sustainable development. The Real Estate Company took expansion
as the goal, and made efforts to seek a breakthrough in project expansion. The Property Management Company took strategic
transformation as the guide to enhance the empowerment value and brand value. The Commercial Operation Company aimed at
improving quality and efficiency, and continued to innovate the operation and management mode, and each business segment has
maintained a stable and healthy development trend. As at the end of the Reporting Period, the total assets of the Group stood at
approximately RMB14.582 billion. During the year, the Group recorded operating revenue of approximately RMB4.492 billion and a
gross profit of approximately RMB1.314 billion, up around 27.07% year on year, representing the highest levels ever since the
establishment of the Group. And with respect to ROE, the Group has stayed at the forefront of A-stock real estate developers and
municipal state-controlled listed companies for years.
First, the industry-city space development segment achieved outstanding results and project expansion was fruitful. The real
estate business recorded operating revenue of RMB3,131 million, accounting for 69.70% of the total operating revenue and up 8.14%
from the previous year. During the Reporting Period, firstly, the Group concentrated on the Greater Bay Area, took an active part in
the competitive land auction market and seized the land auction opportunities in Dongguan and Shenzhen. With these efforts, the
Group successfully won the bird for two land plots, one covering an area of approximately 52,000 square meters in Humen Town,
Dongguan and one covering an area of approximately 15,000 square meters in Guangming District, Shenzhen. It marked a
breakthrough in the Group's acquisition of zero land resources from the secondary market over the years and provided a solid
guarantee for the Group's sustainable development during the "14th Five-year Plan" period, as well as symbolized the full opening of
the era of complete marketization of the Group's development business. Secondly, the Group continued to strengthen the synergy
between phased objectives and resource security to achieve the comprehensive speed-up and turnover of projects under construction.
The annual sales work of the Golden Collar Holiday project was fully coordinated to control the pace of entering the market. The
remaining houses of Towers B and C were sold out smoothly. When the pandemic was under stable control, Tower A was opened for
sale on May 14, which produced satisfactory results and provided strong support for revenue and profit growth. Meanwhile,
breakthroughs were made in the critical processes of some key and difficult projects. Specifically, the Fuchang Phase II project was
capped as scheduled. The implementation entity of the Guanlan Bangling Phase II project was confirmed. The disposal of idle land
was completed for the Baolu land plot and compensation in cash was confirmed. The separation plan of the Yupinluanshan project
was approved by the superior property unit. The acceptance procedures for the Longyaoshanju project in Xuzhou were all completed.
The relocation and renovation of the dilapidated buildings in Canteen No. 3 of Huali West Village were vigorously pushed forward to
mitigate safety risks. In particular, the Guanlan Bangling project, as the Company's first industry-city complex project in the Guanlan
area of Longhua District in a market-oriented manner, was included in the first group of key industrial and major livelihood projects
in Longhua District in 2021, with a total planned investment exceeding RMB8 billion and a total building area of roughly 620,000
square meters. The project will introduce digital manufacturing, digital culture and education, digital health, financial services and
other smart technology industries and build a large industry-city complex integrating industrial office, residential and commercial
properties, boosting the Group's transformation and leapfrog development.
Second, the property management segment grew steadily and continued to accelerate market expansion. The operating
15
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
revenue from property management was RMB1,185 million throughout the year, accounting for 26.37% of the total operating
revenue and representing a year-on-year increase of 10.70%. It remained the Group's second-largest revenue source. The gross profit
margin was 18.31%, an increase of approximately 3.6 percentage points over the same period of the previous year. During the
Reporting Period, five high-quality property management enterprises under SPG, China Shenzhen Foreign Trade (Group) Corp. Ltd.
and Shenzhen Shenfubao (Group) Co., Ltd. were acquired, with a management area of roughly 5.68 million square meters. The total
area under management exceeded 30 million square meters, including 10 million square meters of industrial park area under
management. The scale of operation and management of high-end industrial parks ranked the top of domestic industrial park
operation and management, which effectively enhanced the Group's overall market competitiveness in property management and had
an extremely important milestone significance for the Group's strategic transformation of expanding and strengthening its property
management business and cultivating its second main business. FMC, a high-end value-added service provider, was acquired for
innovation purposes and will serve as an important driver for the Group's informationized, digital and intelligent transformation and
development in the future. At this point, the first project of the Group's fourth-largest business segment - main business ecosystem
investment - was successfully implemented. It marked a vivid practice of "expanding the main business and making breakthroughs",
created an opportunity for subsequent acquisitions of similar enterprises and provided valuable experience for reference. The
market-oriented expansion was promoted at the same time. The annual net increase in the property management area was
approximately 1.95 million square meters, of which about 800,000 square meters were expanded by Yangzhou Jingyue Company,
making outstanding contributions to the completion of the annual tasks. The Group selected CBRE Group, Inc., a giant of the
international property management industry, as a strategic partner to jointly cultivate quality brands in high-end property
management, asset operation and property development services.
Third, quality and efficiency were improved and core operating capabilities were cultivated for the industrial ecological
operation and other segments. The operating revenue from property rental throughout the year was RMB176 million, accounting
for 3.92% of the total operating revenue and up 26.85% from the previous year. In recent years, the Company has taken various steps
to accelerate its transformation and upgrading, explored the establishment of an incremental sharing mechanism and intensified
project expansion. Besides, core operating capabilities were cultivated in multiple paths and the transformation of the current simple
leasing business mode to a commercial operation mode was promoted, thereby boosting the development and growth of the industrial
ecological operation segment. During the Reporting Period, the Company signed agreements with SIHC and Shenzhen Shentou Real
Estate Development Co., Ltd. to trust 97 properties covering about 82,000 square meters of assets, which is expected to increase the
annual revenue by about RMB7 million. The Donghu Apartment project was actively expanded in a market-oriented way for the first
time to nearly 10,000 square meters of asset-light projects and the occupancy rate exceeded 60% on the first day of opening. At the
moment, the leasable property of the Group covers an area of about 430,000 square meters. With quality and efficiency
improvements as the core, the Company is accelerating the transformation, upgrading, revitalization and utilization of assets and the
disposal of inefficient assets. Industrial investment attraction started from scratch and was consolidated afterward. With the
improvement of system building by issuing the White Paper on Industrial Investment Attraction Strategies and the Measures for the
Administration of Industrial Operations (Provisional), the industrial investment attraction system took shape preliminarily. Industrial
planning programmes for Yangzhou, Bangling and Fuyuan projects were vigorously promoted. Besides, the Company contacted
nearly 300 intended partners and reached cooperation intentions with many units. The supervision over the fine decoration of Tower
A of Golden Collar Holiday, Fuchang Phase II and Guanlan Bangling projects was in orderly progress. Various work was carried out
in strict accordance with the standardized procedures for supervision and the Company's relevant requirements for internal control to
successfully complete the supervision of existing projects.
New additions to the land bank:
Total land Considera
Planned Floor area How the The
Name of land lot Site area price tion of the
Location use of with plot land is Company
or project （㎡） (RMB’0,0 Company
land ratio （㎡） obtained ’s interest
00) ’s interest
16
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
(RMB’0,0
00)
Land Lot No.
Yutang Street,
A606-0258 in Residen Open
Guangming 14,901.80 89,067 100.00% 167,044 167,044
Guangming tial market
District
District, Shenzhen
Land Lot No. Chigang
2021WR023 in Community, Residen Open
51,687.93 113,713.44 100.00% 213,376 213,376
Humen Town, Humen Town, tial market
Dongguan Dongguan
Cumulative land bank:
Floor area available for
Name of project/area Site area（0,000 ㎡） Floor area（0,000 ㎡）
development（0,000 ㎡）
Yupinluanshan Garden
2.19 7.89 7.89
project
Baolu project 3.24 8.16 8.16
Land in Danshui, Huiyang
1.77 6.20 6.20
District, Huizhou City
Land in Hongqi Town,
15.8 - -
Haikou City
Project at Yutang, Guangming
1.49 8.91 8.91
District
Project at Humen, Dongguan 5.17 11.37 11.37
Total 29.66 42.53 42.53
Development status of major projects
Floor
area
Cumulat
Time that
Planned ive floor
for compl Estimate Cumula
floor area that
The comm % eted d total tive
City % that has Site area has
Name of Loca Compan ence deve constr investm investm
/reg Usage completed area with complet
project tion y’s ment lope uction ent ent
ion construction （㎡） plot ed
interest of d in the (RMB’0 (RMB’
ratio construc
constr Curre ,000) 0,000)
（㎡） tion
uction nt
（㎡）
Period
（㎡）
She Golden Futi Com
Resid 2014.
nzh Collar’s an 100.00% plete 100.00% 12,598 133,800 0 133,800 138,311 127,701
ential 03
en Resort Distr d
17
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
apartmen ict
ts
Mainframe topped
Und out on October 8,
Futi Affor
She er around 80%
Fuhui an dable 2018.
nzh 100.00% cons decoration 4,274 33,430 0 0 91,133 66,172
Huayuan Distr housi 12
en truct completed, and
ict ng
ion main structure
completed
Und As of December 31,
Ton er construction
Xuz Banshan gsha cons completed and
Resid 2019.
hou Yujing n 100.00% truct going through filing 31,537 22,795 0 0 23,581 20,047
ential 03
City (Phase II) Distr ion formalities for
ict completion of
construction
She Guanlan Lon Resid
nzh Bangling ghua ential,
94.66%
en Distr comm Und
demolished, Phase
ict ercial er
2020. II earthwork,
apart 69.00% cons 68,300 433,640 0 0 694,150 345,252
10 foundation pit
ments truct
supporting and pile
and ion
footing ongoing
indust
rial
Sales status of major projects
Pre-sale/ Pre-sale/
Floor
Cumulat sales Floor sales
Floor area
The ive revenue Cumulat area revenue
Cit area Floor area pre-sold/
Name Comp pre-sold/ generate ive settled in settled in
y/r with available sold in
of Location Usage any’s sold in the settled the the
egi plot for sale the
project interes floor Current floor Current Current
on ratio （㎡） Current
t area Period area (㎡) Period Period
（㎡） Period
（㎡） (RMB’0, （㎡） (RMB’0,
（㎡）
000) 000)
Intersection
Golden of Futian Residential,
Sh
Collar’s South Road studio
en 133,800. 106,525. 38,201.8 100,360. 36,073.5 300,441.
Resort and Binhe apartments 100% 125,231.07 338,967
zh 6 28 4 60 3 21
apartme Road in and
en
nts Futian commercial
District
18
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Do
ng
Songhu
gu Dalang Residential, 147,139. 149,241.
Langyu 100% 140,911 140,911 240 207 228 184.992
an Town commercial 96 84
an
Cit
y
Residential
Ya
Intersection units,
ng
Hupan of Shouxihu shops,
zh 36,141.2 42,921.5 42,822.8
Yujing Road and apartments, 100% 48,870.98 572.28 217.3 607.02 208.35
ou 8 4 7
Phase I Hangou parking
Cit
Road garages and
y
lots
Residential
Ya
Intersection units,
ng
Hupan of Shouxihu shops,
zh 56,935.7 69,798.5 68,314.8
Yujing Road and apartments, 100% 73,121.96 2,275.15 3,078.69 4,136.97 5,454.09
ou 5 2 6
Phase II Hangou parking
Cit
Road garages and
y
lots
Rental status of major projects
The
Cumulative Average
Company’s Rentable area
Name of project Location Usage rented area occupan
working （㎡）
（㎡） cy rate
interest
Apartments for
Xi Apartments (Longyuan) Shenzhen 100.00% 3967 3967 100.00%
long-term rental
Apartments for
Xi Apartments (Longhua) Shenzhen 100.00% 1609 1609 100.00%
long-term rental
Apartments for
Xi Apartments (Xinhu) Shenzhen 100.00% 1600 1600 100.00%
long-term rental
Apartments for
Donghu Apartments Shenzhen 100.00% 8171.72 4506.14 55.14%
long-term rental
Food Court in the
Shenzhen Commercial 100.00% 4049 2468.4 60.96%
International Trade Center
Commercial,
Fumin Complex Shenzhen 100.00% 6450 5192.23 80.50%
apartments
Tower A of Wenjindu Port Luohu District,
Office building 75.00% 5884 5753 97.77%
Building Shenzhen
Haiwai Lianyi Building Shenzhen Commercial units 75.00% 9313.78 9313.78 100.00%
19
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
and offices
Anhua Building Shenzhen Offices 75.00% 1414 1414 100.00%
Residential
Training
Shenzhen units/offices/com 75.00% 4194 4194 100.00%
Building/Dormitory
mercial units
Pengfu Building Shenzhen Offices 75.00% 6494 6494 100.00%
Shenzhen
Jinfu Building Commercial 75.00% 1702 1457 85.61%
Shenzhen
Shenzhen
Jinfu Building Commercial 100.00% 568 568 100.00%
Shenzhen
Residential/comm
Fuxing Garden Shenzhen 75.00% 5787 5787 100.00%
ercial
Fuxing Garden Shenzhen Commercial 100.00% 1417 1417 100.00%
Plant area in Tangxia
Dongguan City Plant 75.00% 22034 22034 100.00%
Town, Dongguan City
Commercial
Pacific Business Building Shenzhen 75.00% 3199 3199 100.00%
units/offices
Commercial
Pacific Business Building Shenzhen 15.00% 14889 14718 98.00%
units/offices
Commercial
Kangti Building Shenzhen 75.00% 2096 2096 100.00%
units/offices
Commercial
Kangti Building Shenzhen 15.00% 1147 1147 100.00%
units/offices
Commercial and
Lyuhua Building Shenzhen 75.00% 6960 6585 95.00%
residential
Shops on the ground floor
of Tower 48 in Lianhua Shenzhen Shops 75.00% 1000 1000 100.00%
North Village
Apartments and
Haonianhua Building Shenzhen 100.00% 1803 1803 100.00%
commercial units
Apartments and
Haonianhua Building Shenzhen 75.00% 2278 2278 100.00%
commercial units
Hostel 2 at Yuxin School Shenzhen Hostel 75.00% 3000 3000 100.00%
Kaifeng Garden in
Shenzhen Residential 100.00% 1307 846.72 64.78%
Shangmeilin
Fuyuan Industrial Zone Shenzhen Plant area 75.00% 47130 47030 99.79%
Tonglu Industrial Zone Shenzhen Plant area 100.00% 76886 74954 97.49%
Gonglu Building Shenzhen Commercial/offic 75.00% 317 317 100.00%
20
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
es
Jiangling Industrial Zone Shenzhen Plant area 75.00% 10397 10397 100.00%
Commercial/offic
Zone 21 Shenzhen 75.00% 9514 6475 68.06%
es
Baoli Community Shenzhen Residential 75.00% 9020 8918 98.87%
Songgang Plant Shenzhen Plant area 75.00% 5700 5700 100.00%
Longbu Plant Shenzhen Plant area 75.00% 7471 7471 100.00%
Gonglu Building in
Shenzhen Offices 75.00% 4600 4547 98.85%
Huanggang
Yuetong Complex Shenzhen Offices 75.00% 3044 3044 100.00%
Department Store Plaza Shenzhen Offices 33.00% 13515 13515 100.00%
Southern Securities
Shenzhen Offices 33.00% 8809.8 4077.96 46.29%
Building
Building 409, Sangda
Shenzhen Plant area 33.00% 3309.2 3309.2 100.00%
Industrial Zone
Mianshui Studio
Shenzhen Apartment 33.00% 3440.12 3440.12 100.00%
Apartment
Xiangfu Building Shenzhen Commercial 33.00% 3104.9 3104.9 100.00%
Primary land development:
□ Applicable √ Not applicable
Financing channels:
Financing cost Maturity structure
Ending balance of
Financing channel range/average Within 1
financings 1-2 years 2-3 years Over 3 years
financing cost year
Bank loans 3,587,800,000.00 4%-6% 3,000,000.00 3,584,800,000.00
Total 3,587,800,000.00 4%-6% 3,000,000.00 3,584,800,000.00
Development strategy and operating plan for the coming year:
Under the macro-economic environment of "triple pressure" in 2022 and amid the overall downward development trend of the
conventional real estate market, SZPRD will actively search for the strategic breakthrough direction, comprehensively connect with
the major strategic orientation of the state-owned asset system and firmly grasp the core processes of stock asset value management
and industrial ecological operation services. Relying on the principle of "expanding the main business and making breakthroughs",
efforts will be doubled to develop four major businesses, i.e., industry-city space development, property management services,
industrial ecological operation and main business ecosystem investment, and guide high-quality development with a new
development philosophy.
In terms of land reserves, after the successful bid for the two quality development land plots in Humen Town of Dongguan and
Guangming District of Shenzhen in 2021, the Company will continue to actively expand its land reserves through market methods
and capital operation in 2022. The Company will lay emphasis on expansion to the Greater Bay Area, the Yangtze River Delta
metropolitan area and areas of existing projects, as well as pay gradual attention and extend its presence to the central urban
agglomeration centering on Wuhan, the Chengdu-Chongqing region in western China and the Beijing-Tianjin-Hebei region. Urban
21
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
renewal projects will be launched primarily in Shenzhen, Dongguan, Huizhou and other areas near Shenzhen and such projects in
Guangzhou will be gradually followed up.
With respect to project development and sales in 2022, the Company will continue to strengthen overall control of the general
objective, phased objectives, progress schedule and investment plans. It will focus on the sales of all the remaining houses of Tower
A of the Golden Collar Holiday Apartment project and the Yangzhou Hupan Yujing project and fully promote the construction of the
projects in Humen Town and Guangming District and the Phases I and II of the Guanlan Bangling urban renewal project.
Furthermore, it will strive to complete various tasks, such as the project approval and special declaration of the renewal unit plan for
the Fuyuan Industry Park, the disposal of idle land in Baolu, the completion and acceptance of the main body and fine decoration of
Fuchang Phase II and the separation of the Yupinluanshan project.
For details, please refer to "XI Prospects" in “Part III Management Discussion and Analysis" in the 2021 annual report. The above
business plan and business objectives do not represent the listed Company’s profit forecast for 2022. Whether it can be achieved
depends on various factors including changes in market conditions and the effort made by the management team. Investors must pay
special attention to that because there exists huge uncertainty.
Provision of guarantees for homebuyers on bank mortgages:
√ Applicable □ Not applicable
As a usual practice for real estate developers, the Company has been providing guarantees and security deposits for its homebuyers
on their bank mortgages. As at 31 December 2021, security deposits for such outstanding guarantees amounted to RMB1,127,757.03,
which will be returned upon the expiry of the guarantees, i.e. when the relevant homebuyers paid off their bank mortgages.
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 investment entities):
√ Applicable □ Not applicable
Compatibility
Amount of As % of the of actual
% of Disinv
Name of Type of investment investment peak of the Cumulativ investment
investment estme
project entity (RMB’0,0 project e income amount and
amount nt
00) funds distributed
income
Urban Mandatory investment
Renewal of entities (including
2,647.00 66.18% N/A 0 None N/A
Bangling directors and senior
Section at management)
Guanlan Voluntary investment
1,353.00 33.82% N/A 0 None N/A
Street entities
Note: Since this is an ongoing project, the peak of the project funds, cumulative income and disinvestment are unknown. For details,
please refer to the relevant announcements disclosed by the Company on www.cninfo.com.cn dated 9 November 2019.
III Core Competitiveness Analysis
Advantages in brand and cultural accumulation: As a Shenzhen municipal state-owned enterprise, SZPRD has undergone 40
years of development and accumulation and has been highly recognized by the market for the brand value and comprehensive
strength of "SZPRD" that carries the spirit of reform and opening up of the Shenzhen International Trade Center Building. SZPRD
came into being because of the Shenzhen International Trade Center and has risen amid the Reform and Opening up campaign.
Emerging and growing together with Shenzhen, a city of miracles, the Company has been “a loyal practitioner of the spirit of the ox”
22
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
and overcome difficulties in proposing new services in the new era.
Market-oriented advantages: In accordance with the market-oriented pace of a small change in a year and a big change in three
years, the Group continues to innovate institutional mechanisms, deepen internal reforms, and actively benchmark with industry
models for market-oriented operation, which significantly stimulates the vitality and momentum of the Group's high-quality
development. In recent years, the Guanlan Bangling project pioneered the cooperation between state-owned enterprises and private
enterprises in developing urban renewal projects, marking the first fully market-oriented urban renewal project in the history of the
Group, and took the lead in implementing the follow-on investment system for urban renewal projects in the city's state-owned
capital system. The property management segment, with 90% projects outside the province and 90% market-oriented expansion,
demonstrates the strong competitiveness of the Company's property management business in the national market. The Company has
simultaneously established a multi-level incentive and restraint mechanism including follow-on investment and long-term incentives,
allocating resources, selecting talents and assessing rewards and punishments according to the market-oriented approach.
Whole industry chain advantage: Over the years, the Group has formed the advantage of the whole industry chain in the whole
process of project acquisition, development and construction, investment and sales, leasing management and property management,
especially in the area of high-end park basic services and property management quality services, which has formed obvious
segmentation advantages and forged the core competitive ability of the Company.
City-industry integration advantage: From the earliest urban complex of Shenzhen International Trade Center Building, Luohu
Commercial City, Huanggang Port area development to the development and operation of large city-industry complex project of
Guanlan Bangling urban renewal project, the Group's advantages of city-industry complex development products have been
highlighted, and with the implementation of a series of urban renewal projects and industrial projects, the advantages of city-industry
complex will be further consolidated and enhanced.
Advantages as a holding subsidiary of a Fortune Global 500 company: Shenzhen Investment Holdings Co., Ltd., the controlling
shareholder of the Company, has been committed to building a world-leading state-owned capital investment and operation company
and a financial holding group. It has now developed into a state-owned capital investment company focusing on fintech, technology
parks, infant industries and high-end services. It was listed in Fortune Global 500 companies in 2021 with an operating income of
RMB214.9 billion and ranked 396th on the list, 46 places higher than that in 2020. Relying on the controlling shareholder's
advantages in the whole industrial chain of technology parks, the Company carries out active transformation and upgrading and
concentrates on the development and construction of industry-city complexes, heralding a broader development prospect.
IV Core Business Analysis
1. Overview
See contents under the heading “II Principal Activity of the Company in the Reporting Period” above in “Management Discussion
and Analysis”.
2. Revenue and Cost Analysis
(1) Breakdown of Operating Revenue
Unit: RMB
2021 2020
As % of total As % of total Change (%)
Operating revenue Operating revenue
operating revenue operating revenue
23
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
(%) (%)
Total 4,491,965,643.71 100% 4,104,374,646.02 100% 9.44%
By operating division
Property
3,131,113,534.70 69.70% 2,895,323,736.80 70.54% 8.14%
development
Property
1,184,591,970.58 26.37% 1,070,094,746.33 26.07% 10.70%
management
Property rental 176,260,138.43 3.92% 138,956,162.89 3.39% 26.85%
By product category
Property
3,131,113,534.70 69.70% 2,895,323,736.80 70.54% 8.14%
development
Property
1,184,591,970.58 26.37% 1,070,094,746.33 26.07% 10.70%
management
Property rental 176,260,138.43 3.92% 138,956,162.89 3.39% 26.85%
By operating segment
Shenzhen 4,107,155,381.91 91.43% 3,718,740,286.40 90.60% 10.44%
Other 384,810,261.80 8.57% 385,634,359.62 9.40% -0.21%
By marketing model
Direct sales 4,491,965,643.71 100.00% 4,104,374,646.02 100.00% 9.44%
(2) Operating Division, Product Category, Operating Segment or Marketing Model Contributing over 10%
of Operating Revenue or Operating Profit
√ Applicable □ Not applicable
Unit: RMB
YoY change in YoY change in YoY change in
Operating Gross profit
Cost of sales operating cost of sales gross profit
revenue margin
revenue (%) (%) margin (%)
By operating division
Property
3,131,113,534.70 432,501,558.96 86.19% 8.14% 11.40% -0.40%
development
Property
1,184,591,970.58 967,698,196.48 18.31% 10.70% 6.07% 3.57%
management
By product category
Property
3,131,113,534.70 432,501,558.96 86.19% 8.14% 11.40% -0.40%
development
Property
1,184,591,970.58 967,698,196.48 18.31% 10.70% 6.07% 3.57%
management
24
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
By operating segment
By marketing model
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 2021 2020 Change (%)
Sales volume m2 37,622.78 47,540.93 -20.86%
Property
Output m2 262,098 262,098 0.00%
development
Inventory m2 35,157.25 76,447.91 -54.01%
Any over 30% YoY movements in the data above and why:
√ Applicable □ Not applicable
The inventory dropped as a result of enhanced sales.
(4) Execution Progress of Major Signed Sales and Purchase Contracts in the Reporting Period
□ Applicable √ Not applicable
(5) Breakdown of Cost of Sales
By operating division
Unit: RMB
2021 2020
Operating
Item As % of total As % of total cost Change (%)
division Cost of sales Cost of sales
cost of sales (%) of sales (%)
Property
432,501,558.96 29.01% 388,253,086.57 28.00% 11.40%
development
Property
967,698,196.48 64.91% 912,325,050.31 65.79% 6.07%
management
Property
90,687,606.72 6.08% 86,132,102.66 6.21% 5.29%
rental
Note:
N/A
25
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
(6) Changes in the Scope of Consolidated Financial Statements for the Reporting Period
√ Yes □ No
See “VIII Changes to the Consolidation Scope” in “Part X Financial Statements” in this Report.
(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) 114,786,951.00
Total sales to top five customers as % of total sales of the
3.34%
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
No. Customer for the Reporting Period As % of total sales revenue (%)
(RMB)
1 Legal person 1 58,081,440.00 1.69%
2 Natual person No. 1 18,393,461.00 0.54%
3 Natural person No. 2 18,336,856.00 0.54%
4 Natual person No. 3 18,280,250.00 0.53%
5 Natural person No. 4 18,248,944.00 0.53%
Total -- 114,786,951.00 3.34%
Other information about major customers:
□ Applicable √ Not applicable
Major suppliers:
Total purchases from top five suppliers (RMB) 95,045,900.12
Total purchases from top five suppliers as % of total purchases
27.83%
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 No. 1 25,529,431.41 7.47%
26
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
2 Legal person No. 2 24,877,379.70 7.28%
3 Legal person No. 3 18,390,089.01 5.38%
4 Legal person No. 4 16,950,000.00 4.96%
5 Legal person No. 5 9,299,000.00 2.72%
Total -- 95,045,900.12 27.83%
Other information about major suppliers:
□ Applicable √ Not applicable
3. Expense
Unit: RMB
2021 2020 Change (%) Reason for any significant change
Increase in commissions paid for sales
Selling expenses 73,350,782.18 44,753,247.18 63.90%
agents and advertising expenditure
Administrative Increase in remunerations and
263,700,171.29 238,625,143.31 10.51%
expenses administrative and general expenses
Finance costs 5,660,573.76 111,263,558.80 -94.91% Decrease in expensed interest expenditure
New business arising from the acquisition
R&D expenses 2,171,797.80 0.00
of FMC in the year
4. R&D Investments
√ Applicable □ Not applicable
Major R&D program Purpose Progress Objectives Expected impact on the Company
Providing a new product line for
Intelligent
To provide a property the property management
SSS intelligent transformation of
service supervision Delivered business from customers’
monitoring system monitoring
platform for customers perspective, laying a foundation
equipment
for more markets
Details about R&D personnel:
2021 2020 Change (%)
Number of R&D personnel 30 0
R&D personnel as % of total
0.04% 0.00%
employees
Educational background —— —— ——
Bachelor’s degree 11 0
Junior college 19 0
Age structure —— —— ——
27
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Below 30 9 0
30~40 9 0
Over 40 12 0
Details about R&D investments:
2021 2020 Change (%)
R&D investments (RMB) 2,171,797.80 0.00
R&D investments as % of
0.05% 0.00%
operating revenue
Capitalized R&D investments
0.00 0.00
(RMB)
Capitalized R&D investments
as % of total R&D 0.00% 0.00%
investments
Reason for any significant change to the composition of R&D personnel and impact:
□ Applicable √ Not applicable
Reasons for any significant YoY change in the percentage of R&D investments in operating revenue:
□ Applicable √ Not applicable
Reason for any sharp variation in the percentage of capitalized R&D investments and rationale:
□ Applicable √ Not applicable
5. Cash Flows
Unit: RMB
Item 2021 2020 Change (%)
Subtotal of cash generated from
5,708,582,727.94 4,809,961,005.82 18.68%
operating activities
Subtotal of cash used in operating
7,521,895,736.52 4,424,463,223.70 70.01%
activities
Net cash generated from/used in
-1,813,313,008.58 385,497,782.12 -570.38%
operating activities
Subtotal of cash generated from
30,506.93 136,131.48 -77.59%
investing activities
Subtotal of cash used in investing
69,599,800.41 48,482,853.70 43.56%
activities
Net cash generated from/used in
-69,569,293.48 -48,346,722.22 43.90%
investing activities
28
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Subtotal of cash generated from
140,000.00 2,176,820,000.00 -99.99%
financing activities
Subtotal of cash used in financing
485,178,611.80 1,627,885,573.80 -70.20%
activities
Net cash generated from/used in
-485,038,611.80 548,934,426.20 -188.36%
financing activities
Net increase in cash and cash
-2,369,407,942.48 882,809,678.36 -368.39%
equivalents
Explanation of why any of the data above varies significantly:
√ Applicable □ Not applicable
Net cash generated from operating activities decreased year on year, primarily driven by a significant increase in land bank
expenditure in the Reporting Period.
② Net cash generated from investing activities decreased year on year, primarily driven by an increase in payments for the
acquisition of equity investments in the Reporting Period.
③ Net cash generated from financing activities decreased year on year, primarily driven by no new bank borrowings in the Reporting
Period.
Reason for any big difference between the net operating cash flow and the net profit for this Reporting Period
√ Applicable □ Not applicable
For the Reporting Period, net cash generated from operating activities stood at RMB-1,813,313,008.58, representing a big difference
from the net profit of RMB986,758,701.05, primarily driven by a significant increase in land bank expenditure in the Reporting
Period.
V Analysis of Non-Core Businesses
√ Applicable □ Not applicable
Unit: RMB
Amount As % of total profit Main source/reason Recurrent or not
Return on Share of profits of joint
4,650,460.58 0.35% Yes
investment ventures
Asset
23,120.82 0.00% Inventory valuation allowances Not
impairments
Non-operating
9,411,411.47 0.72% Compensation for demolition Not
income
Non-operating Payments for liquidated
6,547,898.88 0.50% Not
expense damages and fines
Credit Allowances for doubtful
-29,082,610.26 -2.21% Not
impairment loss accounts
29
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
VI Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
31 December 2021 1 January 2021 Change
As % of As % of in Reason for any significant
Amount total Amount total percenta change
assets assets ge (%)
Significantly increased
Monetary assets 2,171,826,176.21 14.89% 4,206,266,629.32 34.35% -19.46%
payment for land
More customers failed to pay
Accounts
271,529,528.64 1.86% 187,697,631.47 1.53% 0.33% in time in the property
receivable
management business
Contract assets 0.00% 0.00% 0.00%
Inventories 9,123,926,016.15 62.57% 5,312,489,258.20 43.38% 19.19% Increased land bank
Investment
449,653,849.48 3.08% 484,738,506.83 3.96% -0.88%
property
Long-term equity
50,360,681.37 0.35% 45,710,220.79 0.37% -0.02%
investments
Fixed assets 108,161,443.02 0.74% 116,233,936.04 0.95% -0.21%
Increased contract amount
Right-of-use with respect to over-1-year
71,472,680.73 0.49% 39,209,648.76 0.32% 0.17%
assets leases with the Company as
the lessee
Short-term
0.00%
borrowings
Contract Increased pre-sale inflows
1,371,850,725.60 9.41% 666,893,629.72 5.45% 3.96%
liabilities from residential units
Long-term Repayment of some
3,524,500,000.00 24.17% 3,587,800,000.00 29.30% -5.13%
borrowings borrowings
Lease liabilities 83,081,182.89 0.57% 29,410,564.00 0.24% 0.33%
Increased payments for
security deposits for
Other receivables 826,857,046.54 5.67% 789,050,350.51 6.44% -0.77%
cooperation and advance
payments for other entities
Deferred income Increase in deductible losses
1,279,710,969.39 8.78% 950,681,245.50 7.76% 1.02%
tax assets and land VAT provisions
Accounts payable 337,126,528.68 2.31% 468,269,685.65 3.82% -1.51% Increased payments for
30
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
engineering
Other non-current
113,540,088.37 0.78% 108,778,327.45 0.89% -0.11%
liabilities
Indicate whether overseas assets account for a higher proportion of total assets.
□ Applicable √ Not applicable
2. Assets and Liabilities at Fair Value
√ Applicable □ Not applicable
Unit: RMB
Gain/loss
on Cumulative Impairment
Purchased Sold in
fair-value fair-value allowance
Beginning in the the Other Ending
Item changes changes for the
amount Reporting Reporting changes amount
in the charged to Reporting
Period Period
Reporting equity Period
Period
Financial assets
4. Investments in
other equity 1,044,905.12 -28,670.35 -13,682.82 1,002,551.95
instruments
Subtotal of
1,044,905.12 -28,670.35 -13,682.82 1,002,551.95
financial assets
Total of the above 1,044,905.12 -28,670.35 -13,682.82 1,002,551.95
Financial
0.00 0.00
liabilities
Contents of other changes:
Other changes were resulted from exchange rate movements.
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
Unit: RMB
Item Ending carrying value Reason for restriction
Monetary assets 373,079,206.86 [Note 1]-[Note 9]
Land use rights at Fumin New Village, 542,507,314.43 [Note 10]
Futian District, Shenzhen
Total 915,586,521.29
[Note 1] In terms of monetary assets with restricted right to use at the period-end, there was a bank guarantee of RMB366,477,454.26
31
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
issued by the Company in 2021 for the supervision of the implementation entity of the urban renewal unit project Phase II in
Bangling Area, Guanlan Street, Longhua District of Shenzhen Rongyao Real Estate Development Co., Ltd., of which the principal
was RMB365,765,440.00 and the interest was RMB712,014.26.
[Note 2] In terms of monetary assets with restricted right to use at the period-end, there was an escrow deposit of RMB44,690.02 in
the catering branch of the subsidiary company Shandong Shenguomao Real Estate Management Co., Ltd.
[Note 3] In terms of monetary assets with restricted right to use at the period-end, there was an advance payment guarantee of
RMB919,255.00 issued by the subsidiary company Shenzhen Facility Management Community Technology Co., Ltd. in December
2021 for the upgrading and reconstruction of the smart park of Shenzhen Bay Eco-Technology Park and the software platform
development contract.
[Note 4] In terms of monetary assets with restricted right to use at the period-end, there was RMB3,000,000.00 in the subsidiary
company Shenzhen Facility Management Community Technology Co., Ltd. blocked by the court due to pre-litigation preservation
for contract disputes.
[Note 5] In terms of monetary assets with restricted right to use at the period-end, there was a loan deposit of RMB1,127,757.03
provided as mortgage loan guarantees for commercial housing purchasers and paid by the Company as a real estate developer
according to real estate business practices. For details, please refer to XII, iii.
[Note 6] In terms of monetary assets with restricted right to use at the period-end, there was RMB1,335,873.47 of interest on
unexpired term deposits accrued at the period-end.
[Note 7] In terms of monetary assets with restricted right to use at the period-end, there was RMB43,388.89 of interest on
large-denomination CDs (more than one year).
[Note 8] In terms of monetary assets with restricted right to use at the period-end, there was RMB130,780.56 in the account of the
subsidiary company Shenzhen Property Engineering and Construction Supervision Co., Ltd. The account was in a receiving-only
status because the legal person change formalities had not been completed by the period-end.
[Note 9] In terms of monetary assets with restricted right to use at the period-end, there was a restricted fund of RMB7.63 in the
blocked account of the subsidiary company Shenzhen Huazhengpeng Property Management Co., Ltd.
[Note 10] Due to the needs of daily business activities, the Company applied for a loan from Bank of Communications Co., Ltd.
Shenzhen Branch and mortgaged the land use right of Fumin New Village, Futian District. The loan has a duration from November
27, 2020 to November 27, 2023 and applies floating interest rates, with the first execution interest rate being 4.655%.
VII Investments Made
1. Total Investment Amount
□ Applicable √ Not applicable
2. Major Equity Investments Made in the Reporting Period
√ Applicable □ Not applicable
Unit: RMB
Wheth
Investm
Status as er
Name of Shareholdi ent Date of
Investme Sour Investm Produ at the involv
investee Main Invested ng Predicted return in disclosu Disclosure
nt ce of Partners ent ct balance ed in
corporatio businesses amount percentage return the re (if index (if any)
method fund duration type sheet any
n (%) current any)
date legal
period
actions
Shenzhen Equit ShenZhe Not Decemb For details, see
Property Acquisiti 196,676,700 Long-ter Equit 196,676,700
Property 100% y n transferr 0 No er 24, the
managem on .00 y
Managem fund Special m .00 Announcement
ent intere ed yet 2021
ent Co., Economi on the Progress
32
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Ltd. services c Zone st of the
Real Wholly-owned
Estate & Subsidiary's
Properti Acquisition of
es 100% Equity in
(Group) Shenzhen
Co., Ltd. Property
and Management
Shenzhe Co., Ltd. and
n SPG Related-party
Investm Transactions on
ent Co., www.cninfo.co
Ltd. m.cn
(Announcement
No.: 2021-50).
For details, see
the
Announcement
on the Progress
of the
Wholly-owned
China Subsidiary's
Shenzhen
Shenzhe Acquisition of
Foreign
Property n Equit 100% Equity in
Trade Equit Not
managem Acquisiti 20,898,800. Foreign Long-ter y 20,898,800. Shenzhen
Property 100% y transferr 0 No
ent on 00 Trade m intere 00 Foreign Trade
Managem fund ed yet
services (Group) st Property
ent Co.,
Corp. Management
Ltd.
Ltd. Co., Ltd. and
Related-party
Transactions on
www.cninfo.co
m.cn
(Announcement
No.: 2021-51).
Shenzhen
Shenfubao Property Equit
Equit Not
Property managem Acquisiti 59,942,200. Long-ter y 59,942,200.
100% y transferr 0 No
Developm ent on 00 m intere 00
fund ed yet
ent Co., services st
For details, see
Ltd.
the
Building Announcement
project on the Progress
constructi of the
on, Wholly-owned
municipal Subsidiary's
project Acquisition of
Shenzhen
constructi Shenzhe 100% Equity in
Shenfubao
on, daily n Equit Three
Hydropow Equit Not
operation Acquisiti 21,729,700. Shenfub Long-ter y 21,729,700. Enterprises
er 100% y transferr 0 No
and on 00 ao m intere 00 Owned by
Municipal fund ed yet
maintenan (Group) st Shenzhen
Service
ce of Co., Ltd. Shenfubao
Co., Ltd.
municipal (Group) Co.,
public Ltd. and
facilities, Related-party
road Transactions on
cleaning, www.cninfo.co
etc. m.cn
(Announcement
Shenzhen Property
No.: 2021-52).
Free Trade security Equit
Equit Not
Zone and Acquisiti 3,780,500.0 Long-ter y 3,780,500.0
100% y transferr 0 No
Security enterprise on 0 m intere 0
fund ed yet
Service internal st
Co., Ltd. security
303,027,900 303,027,900
Total -- -- -- -- -- -- -- -- 0 -- -- --
.00 .00
3. Major Non-Equity Investments Ongoing in the Reporting Period
□ Applicable √ Not applicable
33
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
4. Financial Investments
(1) Securities Investments
√ Applicable □ Not applicable
Unit: RMB
Gain/Lo
Accumu
ss on Source
Initial Account lated
fair Purchas Gain/los
Variety Beginni fair Sold in of
Code of Name of ing value ed in s in Ending Account
investm measure ng value Reporti
of changes Reporti Reporti carrying investm
security security carrying changes ng
ment in ng ng value ing title
security ent cost method value Reporti charged
Period
Period
Period
ent
to
ng funds
equity
Period
Investm Obtaine
Gintian ents in d in
Domesti 400016 Fair
A, 3,565,8 1,044,9 -28,670. -13,682. 1,002,5 other Gintian’
c/Foreig 、 value 0.00 0.00 0.00
Gintian 56.06 05.12 35 82 51.95 equity s debt
n stock 420016 method
B instrum restructu
ents ring
3,565,8 1,044,9 -28,670. -13,682. 1,002,5
Total -- 0.00 0.00 0.00 -- --
56.06 05.12 35 82 51.95
Disclosure date of
announcement on Board’s
consent for securities
investment
Disclosure date of
announcement on
shareholders’ meeting’s
consent for securities
investment (if any)
(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.
34
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
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 Major Subsidiaries
√ Applicable □ Not applicable
Major fully/majority-owned subsidiaries and those minority-owned subsidiaries with an over 10% effect on the Company’s net profit:
Unit: RMB
Relations
hip with Principal Registered Operating Operating
Name Total assets Net assets Net profit
the activity capital revenue profit
Company
Shenzhen
Developm
Huangchen
Subsidiar ent and 30,000,000. 6,945,754,1 2,503,280,7 3,025,968,9 1,215,970,4 911,272,03
g Real
y sales of 00 99.27 65.45 87.91 07.92 0.61
Estate Co.,
real estate
Ltd.
Subsidiaries obtained or disposed in the Reporting Period:
√ Applicable □ Not applicable
How subsidiary was obtained or Effects on overall operations and operating
Subsidiary
disposed in the Reporting Period performance
Revenue for September-December: RMB10.40
Shenzhen Facility Management
Acquired million
Community Technology Co., Ltd.
Net profit for the year: RMB4.21 million
Vietnam Shenguomao Property Revenue: RMB5.79 million
Newly established
Management Co., Ltd. Net profit for the year: RMB0.42 million
Shenzhen SZPRD Yanzihu Revenue: 0
Newly established
Development Co., Ltd. Net profit for the year: RMB-3,000
Revenue: 0
Dongguan Wuhe Real Estate Co., Ltd. Newly established
Net profit for the year: RMB-0.25 million
Shenzhen Guangming Wuhe Real Revenue: 0
Newly established
Estate Co., Ltd. Net profit for the year: 0
35
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Xiamen Shenguomao Industrial City Revenue: 0
Newly established
Smart Service Co., Ltd. Net profit for the year: 0
Notes to the principal subsidiaries and joint stock companies:
X Structured Bodies Controlled by the Company
□ Applicable √ Not applicable
XI Prospects
(I) Industry Overview and Trends
See “I Industry Overview for the Reporting Period” in “Part III Management Discussion and Analysis”.
(II) The Company’s Development Strategy
As the traditional real estate market’s development declines on the whole, various industrial resources have been continuously
occupied by the large-scale brand houses, which has threatened the survival and development of medium and small-sized property
companies. “Large-scale Enterprises Taking All Advantages” has become normal in the industry, and the positioning of “Houses are
for living in, not for speculating on” has already been established. In this case, Shenzhen Properties & Resources Development
(Group)Ltd. specialized in the traditional real estate will be confronted with the extremely severe industrial situation.
In this context, the Company put forward the “12345” overall development idea of “1 Vision + 2 Major Divisions + 3 Driving
Factors + 4 Businesses + 5 Value-added Services”. In other words, the Company will take effective measures with the focus on
“industrial and urban space asset management” and “space digital ecosystem operation” to develop four major businesses including
industrial and urban space development, industrial ecological operation, property management services, and main ecological
investment through expanding the main business and making breakthroughs. Meanwhile, the Company will realize rapid deployment
and integration of five major value-added services including high-end consulting services, customized housekeeper services,
intelligent operation platform, data tapping and commercial ecosystem integration. Base on Shenzhen with scientific and
technological innovation as the primary driving force, the Company will include Guangdong, Hong Kong and Macao metropolitan
area and surrounding areas to maximize the leverage of capital to build a door type intelligent management and control service
platform with smart society basic functions, aiming to build “China’s leading intelligent operator of industrial and urban space”.
In accordance with three-step strategic implementation route of “strengthening bases, brink breakthrough, and focus on leading”, the
Company will seek transformation and upgrading in the development base on the current development conditions, and promote
incremental development in the transformation to build unique development advantages and create a new pattern of innovation and
development of the Company.
(III) Business plan for 2022
In 2021, the management team of the Group conscientiously implemented the decisions and arrangements of the Board of Directors
and the Party Committee and carried out work around key tasks. The Group set successive record highs in revenue, profit and other
leading economic indicators and made outstanding achievements in major business segments. In terms of land resource acquisition,
two land plots in Humen Town, Dongguan and Yutang Street, Guangming District were successfully acquired through scientific,
elaborate bidding plans and strategies. In terms of project advancement, the phased objectives for the Bangling, Golden Collar
Holiday and Fuchang Phase II projects were accomplished. In terms of capital operation, the property management resources of five
enterprises were integrated into ITC Property Management and FMC was acquired by means of innovating on the trading framework
and breaking through the bottleneck. Collectively, as the policies and mechanisms of the Group become more flexible, the
enthusiasm of cadres and employees for planning and entrepreneurship has been enhanced. Throughout the year, the Group did not
suffer any material safety incidents or material risk stability maintenance events and achieved remarkable results in COVID-19
36
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
control, showing a positive and promising opening.
2022 marks the second year of the "14th Five-year Plan" period and the final year of the three-year action plan for the reform of
state-owned enterprises, as well as the 40th anniversary of the Company's founding and the 30th anniversary of the Company's
listing. The Group will adhere to the general work guideline of "seeking improvement in stability" and implement the general
principle of "acceleration, amplification, empowerment and effectiveness". With a focus on the annual priority tasks, the Group will
spare no effort in four work priorities, i.e., project acceleration, capital amplification, platform empowerment and indicator
effectiveness, and resolutely overcome a number of difficulties, pain points and obstacles affecting the advancement of major
projects. Besides, the Group's development will be guided toward a benign track where business segments and projects move forward
together and compete for development. The Group will continue to be a pioneer in enterprise reform and development,
comprehensively accomplish the annual tasks and objectives and make new contributions to the Group's high-quality sustainable
development and the vision of building China's leading smart operator of industry-city space.
First, the Group will create conditions on the basis of the current resource endowment and business level and strive to
accomplish the leading annual indicators according to the plan. Budget targets such as annual revenue and total profit will be
achieved. Regarding the sales work, the principle of "early planning, early arrangements and early sales payment collection" will be
followed to achieve the sales target for Golden Collar Holiday Apartment Tower A, the liquidation of land appreciation tax for the
Xuzhou Banshan Yujing project, and the admission of partners to and revenue carryforward of Phase II.
Second, the Group will seek innovative working concepts, strengthen node management and achieve the overall acceleration
of projects under construction. Schedule control will be intensified, responsibilities will be fulfilled and improvements will be
made in the capability of commanding and controlling projects and the operating efficiency. The following work needs to be done for
newly started projects in a forward-looking manner, including scheme design, construction drawing design, the determination of cost
targets at various phases and the implementation of bidding and tendering plans. Such work will be matched seamlessly with the
phased plans and will be carried out ahead of schedule moderately, to ensure that each project is implemented with both quality and
quantity guaranteed in strict accordance with the phased plans. Additionally, the pace of the Fuchang Phase II project will be
advanced in an orderly manner. The construction progress of the projects in Humen Town, Dongguan and Yutang Street, Guangming
District will be vigorously pushed forward. Continuous efforts will be put into promoting priority work, such as the confirmation of
land rights for the Huiyang Danshui project and the establishment of project companies. A series of work will be completed,
including the separation and sales payment collection of the Yupinluanshan project, the disposal of idle land of the Baolu project, the
scoping of the renewal unit for the Fuyuan Industry Park project and the planned approval of the Tianjun Pingshan project.
Third, the Group will continue to strengthen the building of independent operating capacity of secondary platform
companies, the development of platform functions and the playing of roles and stick to the development pattern of real estate
as the main business. A standardized model of the whole process of real estate project development will be built. The results of real
estate work conferences will be implemented, as well as the improvement plans of "3+1" for project management and "1+5" for cost
management. Continuous efforts will be made to improve the project development management system and achieve the
complementation, synergy and coordination among the business lines in the Group's project design, construction, bidding and
tendering and marketing. In addition, the Group will compare its projects with benchmarking projects of the industry to enhance the
management level and build an efficient, standardized model of the whole process of real estate project development to guarantee the
efficient and stable operation of projects during the whole life cycle. With respect to the property management segment, the
high-quality expansion will be sped up and various steps will be taken to enhance the internal management level. According to
the annual target, external M&As and endogenous expansion will be strengthened and the integration of property management assets
in the system will continue to be promoted, in a bid to achieve the target of adding 10 million square meters of management scale
through M&As within the year. Furthermore, the opportunity from inspection and remediation will be used for comprehensive
remediation and the building of a service standardization system will be deepened so that it will match the strategic positioning of the
system's property management platform as soon as possible. The focus will be placed on improving the quality and efficiency of
stock assets and transformation and upgrading will be accelerated. The growth of annual rental income shall not be less than
37
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
10% and the average occupancy rate shall not be less than 95%. With the establishment of an indicator system for quality and
efficiency improvement assessment of stock properties and an incentive and restraint mechanism, the format transformation and
upgrading of old properties will be promoted and the stock asset management will change from "passive lease" to "active operation".
Besides, the quality and efficiency improvement of the ITC shopping mall and plaza Phase II project will be started.
Fourth, the Group will adhere to the Party's overall leadership, promote the decentralization of business focus, the
downward shift of management priorities and the penetration of management capabilities. The Group will continue to
consolidate the Party building, strengthen the building of grass-roots Party organizations and Party members, give full play to the
Party's political leadership to facilitate operation and development and carry out characteristic theme Party building and corporate
culture publicity and creation activities in due time. In terms of internal inspections of the Group's Party Committee, the third round
of inspections will be organized, the review of the first and second rounds of inspections will be carried out and the big supervision
system will be pushed to extend to secondary and tertiary enterprises. Financial management will aim at improving the efficiency and
effectiveness of resource utilization. The corresponding measures include optimizing resource allocation, tightening budget control
and assessment, strengthening industry-finance integration, financial analysis and tax planning and raising funds through multiple
channels. The establishment of an all-around, multi-level incentive and restraint mechanism involving node awards and incremental
sharing will continue to be promoted, with secondary and tertiary companies covered by the mechanism. The introduction,
cultivation, employment, education and restraint of cadres will be intensified and a talent selection and employment orientation of
promoting the capable, awarding the excellent, demoting the mediocre and dismissing the inferior will be formed. Administrative
work will be pushed downward, the basic management level of secondary platform companies and tertiary units will be enhanced
significantly in the form of resident supervision, and the Group's digital transformation planning will be prepared and implemented.
The Group's industrial operation platform of "industry-university-research-application" will be built, the industrial operation system
will be improved gradually and the investment attraction capability and level will be enhanced.
Fifth, the Group will be always vigilant about production safety, complaint letters and visits and stability maintenance. The
specific measures include strengthening risk control, safeguarding the bottom line of safe production, keeping production safety in a
stable situation, deepening the building of safe production standardization and the "dual prevention mechanism", and intensifying
regular production safety inspections. In addition, hidden risks will be collated regularly, list management will be implemented for
risk points in key areas and key processes, and remediation will be strictly carried out, to ensure that no production safety accident
occurs throughout the year. Moreover, the Group will strengthen the dynamic follow-up and implementation of material risks, keep a
close watch on wages for migrant workers and labor contract disputes, make overall planning for COVID-19 control, production and
operation, maintain a strict and tight prevention and control posture, and resolutely safeguard stability and unity.
(IV) Potential risks
1. Market risk
Under the guidance of the policy that "houses are for living in, not for speculating on", the demand side of the real estate market
remains in the downward channel and the central government still imposes stringent financial regulation over the real estate market.
Consequently, the development space of the property industry has been constantly compressed, industry profits have fallen sharply
and there has been a shift from land dividends to management dividends. In particular, it poses unprecedented challenges to business
capabilities such as cost design and engineering. The advancement of urban renewal projects is confronted with complicated
conditions and formidable obstacles and the Company's business and development face opportunities and challenges.
Under grim circumstances, the Company thoroughly studied the opportunities and challenges brought about by macroeconomic
trends and policy movements, actively sought the strategic breakthrough direction and adhered to prudent operation. Additionally, it
raised funds from multiple channels, focused on enhancing the management level and seized opportunities in the land market. Based
in Shenzhen, the Company aims to extend its presence to the Guangdong-Hong Kong-Macao metropolitan area and surrounding
areas and strives to improve its sustainable development capabilities.
2. Land Reserve Risk
As a matter of fact, the Company still lacks enough land reserves and development power at later stages. In recent years, the supply
38
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
of residential land on Shenzhen Market has continuously declined. Various large-scale real estate enterprises have enlarged their
market shares and accelerated their M&A pace. While the real estate industry is centralizing, the degree of centralization of the land
reserve scale has also been enhanced. As the external environment and the industry’s trend become much more complicated and
severe, the increment market scale will further shrink and the market competition will become increasingly fierce.
Facing the challenges, the Company will continue to expand through market competition, capital operation and urban renewal,
increase land reserves and promote the launch of projects. In respect to property type, residential projects will focus on
Guangdong-Hong Kong-Macao Greater Bay Area, Yangtze River Delta metropolitan area and areas where existing projects locate,
and gradually turn to central urban agglomeration surrounding Wuhan, key cities in Chengdu- Chongqing in the West and those in
Beijing, Tianjin and Hebei. Urban renewal projects will focus on Shenzhen, Dongguan and Huizhou, and follow-up of urban renewal
projects in Guangzhou. Comprehensive industry and urban projects will focus on Guangdong-Hong Kong-Macao Greater Bay Area,
Yangtze River Delta region, Wuhan region in the central part and Chengdu-Chongqing area in the West.
3. Financing Risk
In order to effectively prevent financial risk in the real estate sector, as the central government tightened financial supervision over
real estate and implemented the “three red lines”, financing of real estate enterprises are further restricted. In the process of actively
increasing land reserves and accelerating the business development, the Company needs to invest a large amount of funds for land
acquisition and project development. In addition to its own funds, the Company’s project development funds need to be externally
financed through bank loans and issuing securities.
Currently, the Company has steady financial situation, sufficient cash flow and good credit condition, and will further strictly control
financial risks, actively explore various financing channels so as to raise funds for project development in the future.
4. Pandemic risk
Due to the impact of the COVID-19 pandemic, many cities issued the notice of "operation suspended", which explicitly prohibited
sales offices and intermediary stores to continue businesses, and Shenzhen was also greatly affected in early 2022. The pandemic not
only brought impacts on the Company's real estate projects, especially on the investment, construction progress, financing
environment and pace of sales of projects in Shenzhen-adjacent areas but also caused pressure to the Company's subsequent
withdrawal of funds.
The above business plan and business objectives do not represent the listed Company’s profit forecast for 2022. Whether it
can be achieved depends on various factors including changes in market conditions and the effort made by the management
team. Investors must pay special attention to that because there exists huge uncertainty.
XII Communications with the Investment Community such as Researches, Inquiries and
Interviews during the Reporting Period
√ Applicable □ Not applicable
Way Index to
Place of Type of
Date of visit of Visitor Contents and materials provided relevant
visit visitor
visit information
The Pointing out problems on property
2021-01-07 Other Individual Individual N/A
Company management projects
The Inquiry about financing arrangements and
2021-01-10 Other Individual Individual N/A
Company plans
The Inquiry about the Guanlan Bangling urban
2021-01-13 Other Individual Individual N/A
Company renewal project
2021-01-14 The Other Individual Individual Inquiry about land reserves N/A
39
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Company
The
2021-01-23 Other Individual Individual Inquiry about the Company's dividends N/A
Company
The Inquiry about the cause of the sharp increase
2021-01-26 Other Individual Individual N/A
Company in tax expenditure
The Inquiry about the disclosure time of the 2020
2021-01-27 Other Individual Individual N/A
Company annual report
The Inquiry about the average land acquisition
2021-02-02 Other Individual Individual N/A
Company price of the Company
The Suggestions for the Company's disposal of the
2021-02-07 Other Individual Individual N/A
Company B Share
Inquiry about whether the Company adopted
The
2021-03-15 Other Individual Individual such employment methods as labor dispatch N/A
Company
or outsourcing
The Inquiry about the disclosure time of the
2021-03-20 Other Individual Individual N/A
Company Company's Q1 results forecast
The Inquiry about the Company's relevant
2021-03-22 Other Individual Individual N/A
Company business layout
The Inquiry about the Company's layout of urban
2021-03-24 Other Individual Individual N/A
Company renewal projects
Institution See Investor
al Relations
investors Activities
including Log Sheet
One- China No. 2021-01
on-on Industrial Inquiry about the Company's 2020 annual disclosed by
The
2021-04-01 e Institution Securities, report, development of business segments and the
Company
meeti Wanjia future planning Company
ng Asset on
Managem http://www.
ent, cninfo.com.
Mingya cn dated 1
Fund, etc. April 2021
Inquiry about the reason why the profit or loss
The
2021-04-01 Other Individual Individual attributable to minority shareholders was N/A
Company
negative
The Inquiry about the cause of the decrease in
2021-04-01 Other Individual Individual N/A
Company operating cash flows
The Inquiry about the construction progress of the
2021-04-03 Other Individual Individual N/A
Company International Trade Center Building project
40
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
The Inquiry about the land development in Hongqi
2021-04-11 Other Individual Individual N/A
Company Town, Haikou
The Inquiry about the land acquisition for urban
2021-04-19 Other Individual Individual N/A
Company renewal projects
The
2021-04-21 Other Individual Individual Inquiry about the date of dividend distribution N/A
Company
The Inquiry about the reason why profit was
2021-04-23 Other Individual Individual N/A
Company concentrated in Q4
The Inquiry about the progress of the Guanlan
2021-04-23 Other Individual Individual N/A
Company Bangling urban renewal project
The
2021-04-23 Other Individual Individual Inquiry about the date of dividend distribution N/A
Company
The Inquiry about the cause of the surge in the
2021-04-30 Other Individual Individual N/A
Company results of Q1
The Inquiry about the cause of the decline in
2021-04-30 Other Individual Individual N/A
Company financing cash flows
The Inquiry about the dividend and ex-dividend
2021-05-07 Other Individual Individual N/A
Company scheme for the B Share
The Inquiry about the scope of the Company's
2021-05-12 Other Individual Individual N/A
Company business
The Inquiry about how the Company dealt with
2021-05-12 Other Individual Individual N/A
Company the impact of rising raw materials
Inquiry about the development of the
The
2021-05-13 Other Individual Individual Company's main business and the future N/A
Company
planning
The Inquiry about the number of shareholders of
2021-05-14 Other Individual Individual N/A
Company the Company
The Inquiry about the reform of state-owned
2021-05-19 Other Individual Individual N/A
Company enterprises of the Shenzhen SASAC
The
2021-05-19 Other Individual Individual Suggestions for the Company's development N/A
Company
The Inquiry about the impact of the pandemic in
2021-05-20 Other Individual Individual N/A
Company Vietnam on the Company's results
The Inquiry about the land in Hongqi Town,
2021-05-26 Other Individual Individual N/A
Company Haikou
The
2021-05-31 Other Individual Individual Inquiry about dividends N/A
Company
The Inquiry about the reason why some accounts
2021-06-07 Other Individual Individual N/A
Company in the Company's Q1 financial statements
41
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
accounted for a large proportion
The Inquiry about the Company's cooperation with
2021-06-12 Other Individual Individual N/A
Company Xpeng Motors
The Inquiry about the Company's solutions to
2021-06-16 Other Individual Individual N/A
Company horizontal competition
The Inquiry about the sales of Tower A of Golden
2021-06-27 Other Individual Individual N/A
Company Collar Holiday Apartment
The Inquiry about the sales of Towers B and C of
2021-07-03 Other Individual Individual N/A
Company Golden Collar Holiday Apartment
The
2021-07-13 Other Individual Individual Inquiry about the Company's dividends N/A
Company
The Inquiry about the Company's measures to deal
2021-07-13 Other Individual Individual N/A
Company with land policy changes
The Inquiry about the Company's business layout
2021-07-20 Other Individual Individual N/A
Company and future planning
The Inquiry about whether the B Share affected
2021-07-21 Other Individual Individual N/A
Company the A Share
The Inquiry about the progress of the Fuyuan
2021-07-21 Other Individual Individual N/A
Company Industry Park urban renewal project
Inquiry about the proportion of equity held by
The
2021-07-26 Other Individual Individual the Company in the International Trade Center N/A
Company
Building
Inquiry about the Company's layout of
The
2021-08-01 Other Individual Individual comprehensive development and operation of N/A
Company
parks
The Inquiry about the Company's semi-annual
2021-08-04 Other Individual Individual N/A
Company results
The Inquiry about the Company's countermeasures
2021-08-08 Other Individual Individual N/A
Company for the downward trend of real estate
The Inquiry about the number of long-rental
2021-08-08 Other Individual Individual N/A
Company apartment units of the Company
Suggestions on the timely acquisition of
The
2021-08-12 Other Individual Individual high-quality assets by the Company's major N/A
Company
shareholder
The Inquiry about the Company's shareholding in
2021-08-16 Other Individual Individual N/A
Company subsidiaries
The
2021-08-17 Other Individual Individual Inquiry about the Company's social donation N/A
Company
2021-08-17 The Other Individual Individual Inquiry about the properties held by the N/A
42
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Company Company
The Inquiry about the Company's signing of
2021-08-18 Other Individual Individual N/A
Company strategic cooperation agreements
The Inquiry about the operation of the Company's
2021-09-01 Other Individual Individual N/A
Company long-rental apartments
Inquiry about the Company's participation in
The
2021-09-06 Other Individual Individual the construction of the Guangdong-Hong N/A
Company
Kong-Macau Greater Bay Area
The Inquiry about changes in major shareholders'
2021-09-10 Other Individual Individual N/A
Company commitment to solving horizontal competition
The
2021-09-19 Other Individual Individual Inquiry about the Company's land reserves N/A
Company
The Suggestions for the Company's disposal of the
2021-09-20 Other Individual Individual N/A
Company B Share
The Inquiry about the Company's project
2021-09-24 Other Individual Individual N/A
Company construction
The Suggestions for the Company to innovate on
2021-09-29 Other Individual Individual N/A
Company the dividend mechanism
The Inquiry about the land development in Hongqi
2021-09-29 Other Individual Individual N/A
Company Town, Haikou by the Company
The
2021-09-29 Other Individual Individual Inquiry about the third quarter results forecast N/A
Company
The
2021-10-09 Other Individual Individual Inquiry about the third quarter results forecast N/A
Company
The Inquiry about the Company's development
2021-10-13 Other Individual Individual N/A
Company strategy
The Inquiry about whether the Company has
2021-11-08 Other Individual Individual N/A
Company repurchase plans
The Inquiry about the sales of Tower A of Golden
2021-11-30 Other Individual Individual N/A
Company Collar Holiday Apartment
The Inquiry about whether the Company plans to
2021-12-03 Other Individual Individual N/A
Company engage R&D experts
Inquiry about the Company's business
The
2021-12-05 Other Individual Individual development and its business layout outside N/A
Company
Shenzhen
The Inquiry about the Company's development of
2021-12-10 Other Individual Individual N/A
Company the land in Guangming District
The Inquiry about the number of shareholders of
2021-12-17 Other Individual Individual N/A
Company the Company
43
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
The
2021-12-28 Other Individual Individual Inquiry about the Company's dividend plan N/A
Company
44
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Part IV Corporate Governance
I General Information of Corporate Governance
The internal control system of the Company is complete, accomplished and defined that in accordance with Company Law, Articles
of Association and other laws and regulations as well as requirements of regulatory documents. The convene of Shareholders’
General Meeting, the Board of Directors and Supervisory Board are strictly in accordance with relevant rules and regulations, all
directors and supervisors earnestly and diligently commit their responsibilities. Corporate structure of the Company is complete and
the operation of the Company is standardized.
During the Reporting Period, the Company revised the Articles of Association, Rules of Procedures for General Meeting of
Shareholders, the Rules for the Management of Information Insiders, the Management Rules for Information Disclosure Affairs, etc.
in accordance with the Company Law, Securities Law, Listing Rules and other relevant provisions based on the actual conditions of
the Company to establish and improve internal management and control system.
Abiding by the principle of being scientific, simplified and high efficient, the Company adjusted the its setting of departments and
institutions, currently set up Party-mass office, discipline inspection and supervision office (the audit department, office of the
supervisory committee, office of board of directors, comprehensive office (procedure and information center, letters and visits office),
HR department (training center), financial management department (settlement center), investment development department,
operation and management department, design management department (technological center), cost contract department, engineering
management department (office of security committee), office of industrial operation. Each department performs its own functions,
and strictly carries out work according to internal control system, to ensure the normal and efficient operation of the Company.
The Company has always attached great importance on standardizing insider information management, formulated and completed
Management Provisions on Information Disclosure, Work Procedures of Annual Report of Auditing Committee, Accountability
System of Major Errors in Information Disclosure of Annual Report, Work System of Annual Report, Insider Management System of
Insider Information, Management System of Investor Relationship, and other internal control system, to ensure the authenticity,
accuracy and completeness of Company information disclosure. During the reporting period, the Company strictly carried out
information disclosure, corporate governance conference organization, and other work according to requirements of securities
supervision, disclosed information timely, accurately and completely, without any accidents which violate relevant internal control
system of information disclosure.
The Company carried out quality self-examination of listed companies according to the requirements of Shenzhen Securities
Regulatory Bureau to find out deficiencies in the operation of the Company and formulate rectification plan to improve company
governance and standard operation.
Indicate by tick market whether there is any material incompliance with the applicable laws, administrative regulations, and
regulations issued by the CSRC governing the governance of listed companies.
□ Yes √ No
No such cases in the Reporting Period.
II The Company’s Independence from Its Controlling Shareholder and Actual Controller in
Asset, Personnel, Financial Affairs, Organization and Business
The Company was independent from the controlling shareholder in business, personnel, assets, organization and finance to realize
that independent personnel, independent finance, complete assets, independent organization and independent business.
1. In aspect of business: The Company was independent from the controlling shareholder with independent and complete business
45
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
and independent operation capability. There was no business which was same or competitive with the controlling shareholder.
2. In aspect of personnel: The Company was complete independent from the controlling shareholder in terms of labor and personnel,
management on remuneration. Personnel of the Company are independent, all ones signed labor contract with the Company. The
Company was independent from the shareholders or other related parties in personnel management, social security, salary etc.
3. In aspect of asset: The Company’s assets were complete and independent, the property relationship was clear. There was no capital
occupation by controlling shareholder, and assets of the Company were completely independent from controlling shareholder.
4. In aspect of organization: The Company’s organization was independent, and the Company implemented rules and regulations as
well as responsibilities for all departments, formed independent responsibilities and rights, scientific and rational internal control
system.
5. In aspect of finance: The Company’s finance was independent with independent finance department. The Company established the
independent finance settling system and financial management system, had its own finance account and paid the tax in line with laws,
run finance decision-making independently.
The controlling shareholder of the Company performed normatively with no conduct that intervened with the operation
decision-making and operation activities directly or indirectly over the shareholders’ general meeting, however, the controlling
shareholder could influence on the significant decision-making through the shares holding.
III Horizontal Competition
√ Applicable □ Not applicable
Relationship Progress and
Type of Company Cause of
with the Company name Solution subsequent
problem nature problem
Company plan
Shenzhen
Horizontal Controlling Investment
Other Note 1 Note 2 Note 3
competition shareholder Holdings Co.,
Ltd.
Note 1: According to the overall plan of the Shenzhen Municipal Government on the restructuring of the state-owned assets
management system, the State-owned Assets Supervision and Administration Commission of the People's Government of Shenzhen
Municipal decided to establish Shenzhen Investment Holdings Co., Ltd. (SIHC), merging Shenzhen Investment Holdings Co., Ltd.,
Shenzhen Management-Investment Company and Shenzhen Trade Investment Holdings Co., Ltd. As a result, SIHC inherited 63.82%
of the equity interests in the listed company ShenZhen Properties & Resources Development (Group) Ltd. (SZPRD) held by
Shenzhen Investment Holdings Co., Ltd. and Shenzhen Management-Investment Company in accordance with the law. On 19
October 2018, SIHC obtained the Confirmation of Securities Transfer Registration regarding the equity interest of SZPRD and
completed the transfer of the equity interest in SZPRD. In view of the fact that Shenzhen Construction Development (Group)
Company (“Shenzhen Construction Development”), ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
(“SPG”) and SZPRD, all wholly-owned subsidiaries of SIHC, are operating real estate development and commercial property sales
business, which belong to the same industry, and there is competition in the same industry.
Note 2: To avoid horizontal competition, SIHC make the following commitments: 1. On the horizontal competition solution of
Shenzhen Construction Development: as the holding shareholder of the Listed Company, during the listing period at Shenzhen Stock
Exchange of the Listed Company, as for the current business of Shenzhen Construction Development which has horizontal
competition with the Listed Company, within the scope permitted by law and regulation, within 12 months from the equity of SZPRD
being transferred to SIHC, SIHC will start the solution with practical operability among below horizontal competition solution timely
46
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
and complete implementation of the solution within 3 years from the date that the equity of SZPRD is transferred to SIHC to solve
current horizontal competition problems: (1) Shenzhen Construction Development signs asset custody agreement with the Listed
Company, entrusts the assets which has direct competition with the Listed Company to the Listed Company, confirms fair custodian
fee at the same time, and takes effective measures to solve horizontal competition within commitment period; (2) Inject assets with
direct competition with the Listed Company into the Listed Company; (3) Transfer assets with direct competition with the Listed
Company to unrelated third party; (4) other measures which can solve horizontal competition effectively and is favorable for
protecting the interest of the Listed Company and legal interests of other shareholders. Before solving current horizontal competition,
while company, enterprise, economic organization (not including enterprises controlled by the Listed Company, hereinafter referred
to as subordinated Companies) which the Listed Company and SIHC hold controlling shares or controls actually have business, in
case the involved dispute, etc. have major influence on the business, SIHC should keep neutral as a controlling shareholder to ensure
that the Listed Company and subordinated Companies can take part in market competition on the principle of fair competition. 2.
Horizontal competition solution of SPG: From 14 September 2016 to now, SPG has had stock suspension because of major assets
restructuring. According to Review Opinions on Delaying Stock Resumption because of Major Assets Restructuring of SPG
announced by CITIC Securities and Huatai Securities on 26 November 2016, the restructuring solution is that SPG plans to issue A
share and / or use currency to purchase 100% equity of Evergrande Group (hereinafter referred to as “the restructuring of SPG”).
Guangzhou Chiron Real Estate Co., Ltd. will be the controlling shareholder of SPG upon the completion of the restructuring of SPG.
If the restructuring of SPG is completed, SIHC will cease to control SPG, which means there will be no horizontal competition
between SPG and SZPRD. If the restructuring of SPG is terminated, for business of SPG which has horizontal competition with the
Listed Company, SIHC, within the scope permitted by law and regulation, SIHC will start a rational horizontal competition solution
according to actual situation at the time within 12 months after the termination of reconstruction of SPG and stock resumption
announcement date, and fulfill announcement obligation, and SPG will complete to implement the solution and solve the horizontal
competition between SZPRD and SPG within 3 years from the date SPG terminates the reconstruction and announces stock
resumption. 3. Other commitments to avoid horizontal competition: as the controlling shareholder of the Listed Company and during
the listing period of the Listed Company at Shenzhen Stock Exchange, other subordinated Companies of SIHC will not engage in
relevant business which has direct horizontal business competition with the Listed Company in new business fields except for in the
business field where it already has had horizontal competition with the Listed Company. Shenzhen Investment Holdings promises not
to seek improper benefits with the position of controlling shareholder of the Listed Company and damage the interest of the Listed
Company and its shareholders. In case of violating above commitment, SIHC shall undertake corresponding legal liabilities,
including but not limited to undertaking compensation responsibilities for all losses caused to the Listed Company.
Note 3: SIHC has always been actively committed to fulfilling its relevant commitments. During the term of commitment, SIHC did
not seek any illegitimate interests as the controlling shareholding of SZPRD or damage any rights and interests of SZPRD and its
shareholders. During the term of commitment, SIHC actively collated the underlying assets and businesses of Shenzhen Construction
Development (Group) Company and devoted itself to developing practical and feasible plans as soon as possible to solve the
horizontal competition issue for SZPRD. It also actively promoted the restructuring of SPG. However, given the objective
circumstances, SIHC failed to fulfill the original commitment to avoid horizontal competition. SIHC re-issued the Letter on
Changing the Commitment to Avoiding Horizontal Competition on 31 August 2021 and such commitment change matter was
approved at the first extraordinary general meeting of 2021 held on 27 September 2021. For more details, see the Announcement on
the Application by the Company's Controlling Shareholder for Changing the Commitment to Avoiding Horizontal Competition
(Announcement No.: 2021-32) disclosed by the Company on www.cninfo.com.cn on 11 September 2021.
47
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
IV Annual and Special General Meetings Convened during the Reporting Period
1. General Meeting Convened during the Reporting Period
Investor
Meeting Type participatio Date of the meeting Disclosure date Resolutions
n ratio
The reports and proposals
deliberated and approved at the
meeting included the Report on the
Work of the Board of Directors in
2020, the Report on the Work of the
Board of Supervisors in 2020, the
2020 Annual Report, the 2020
Financial Accounts Report, the 2021
Financial Budget Report, the Plan
on Profit Distribution and
Capitalization from Capital Reserve
in 2020, the Proposal on the
The 2020 Comprehensive Credit Line for 2021,
Annual
Annual the Proposal on Using Part of Own
General 61.23% 21 April 2021 22 April 2021
General Funds to Purchase Wealth
Meeting
Meeting Management Products, the Proposal
on Issuing Commercial Property
Mortgage Asset-Backed
Securitization Products, the Proposal
on Estimated Routine Related-party
Transactions for 2021 and the
Proposal on Renewing the
Engagement of Accounting Firm. For
details, please refer to the
Announcement on the Resolutions of
the 2020 Annual General Meeting
(No.: 2021-19) on
www.cninfo.com.cn.
The proposals deliberated and
approved at the meeting included the
The 1 st
Proposal on Amending the Articles of
Extraordi
Extraordinary Association, the Proposal on
nary
General 61.33% 27 September 2021 28 September 2021 Amending the Rules of Procedure for
General
Meeting of General Meeting, the Proposal on
Meeting
2021 the Application by the Company's
Controlling Shareholder for
Changing the Commitment to
48
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Avoiding Horizontal Competition,
the Proposal on the Transition of the
Ninth Board of Directors of the
Company and the Nomination of
Non-independent Directors of the
Tenth Board of Directors of the
Company, the Proposal on the
Transition of the Ninth Board of
Directors of the Company and the
Nomination of Independent Directors
of the Tenth Board of Directors of the
Company and the Proposal on the
Transition of the Ninth Board of
Directors of the Company. For
details, see the Announcement on the
Resolutions of the First
Extraordinary General Meeting in
2021 (No. 2021-34) on
www.cninfo.com.cn.
The proposals deliberated and
approved at the meeting included the
Proposal on the Wholly-owned
Subsidiary's Acquisition of 100%
Equity in Shenzhen Property
Management Co., Ltd. and
Related-party Transactions, the
Proposal on the Wholly-owned
Subsidiary's Acquisition of 100%
The 2nd
Extraordi Equity in Shenzhen Foreign Trade
Extraordinary
nary Property Management Co., Ltd. and
General 4.87% 29 December 2021 30 December 2021
General Related-party Transactions and the
Meeting of
Meeting Proposal on the Wholly-owned
2021
Subsidiary's Acquisition of 100%
Equity in Three Enterprises Owned
by Shenzhen Shenfubao (Group) Co.,
Ltd. and Related-party Transactions.
For details, see the Announcement on
the Resolutions of the Second
Extraordinary General Meeting in
2021 (No. 2021-53) on
www.cninfo.com.cn.
49
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
2. Special General Meetings Convened at the Request of Preferred Shareholders with Resumed Voting
Rights
□ Applicable √ Not applicable
V Directors, Supervisors and Senior Management
1. General Information
Decre
Endi
ase in Other Reas
Beginni Increase ng
Restricted the increa on
Incum ng in the shar
Office Gen Start of End of Share shares Report se/dec for
Name bent/F Age sharehol Reportin ehol
title der tenure tenure option granted ing rease share
ormer ding g Period ding
(share) Period (share chan
(share) (share) (sha
(share ) ge
re)
)
Party
Secretary
Liu 26
and Incum Mal 15 June
Shengx 51 Septemb
Chairman bent e 2018
iang er 2024
of the
Board
Director,
Wang Deputy 26
Incum Mal 15 June
Hangju Party 56 Septemb
bent e 2018
n Secretary, er 2024
GM
Director,
Wei 26
Deputy Incum Mal 15 June
Xiaodo 52 Septemb
Party bent e 2018
ng er 2024
Secretary
Shen 26
Director Incum Fem 15 June
Xueyin 53 Septemb
and CFO bent ale 2018
g er 2024
26
Wang Incum Mal 15 June
Director 51 Septemb
Ge bent e 2018
er 2024
26
Xie Incum Mal 7 April
Director 50 Septemb
Chang bent e 2020
er 2024
Mei Independe Incum Mal 58 15 June 26
50
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Yongh nt bent e 2018 Septemb
ong Director er 2024
Li Independe 27 26
Incum Mal
Dongh nt 50 Septemb Septemb
bent e
ui Director er 2021 er 2024
Independe 27 26
Hu Incum Fem
nt 40 Septemb Septemb
Caimei bent ale
Director er 2021 er 2024
Chairman
of the
Superviso
ry
Committe
Dai 26
e and Incum Mal 15 June
Xianhu 60 Septemb
Secretary bent e 2018
a er 2024
of the
Discipline
Inspection
Commissi
on
Zhang 26
Superviso Incum Mal 15 June
Manhu 47 Septemb
r bent e 2018
a er 2024
Li 26
Superviso Incum Mal 15 June
Qinghu 40 Septemb
r bent e 2018
a er 2024
Employee
Supervisor
,
Executive
Director
Wang 26
of ITC Incum Fem 15 June
Qiupin 52 Septemb
Park, bent ale 2018
g er 2024
Secretary
of the
Party
Committe
e
Employee
Gu 26
Supervisor Incum Fem 15 June
Weimi 41 Septemb
, bent ale 2018
n er 2024
Discipline
51
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Inspection
Director,
Deputy
Secretary
of the
Discipline
Inspection
Commissi
on
Member
of the
Party 28 26
Chen Incum Mal
Committe 53 Decemb Septemb
Hongji bent e
e and er 2020 er 2024
Deputy
GM
Member
of the
Party 26
Cai Incum Fem 15 June
Committe 50 Septemb
Lili bent ale 2018
e and er 2024
Deputy
GM
Member
of the
Party 26
Li Incum Mal 15 June
Committe 46 Septemb
Peng bent e 2018
e and er 2024
Deputy
GM
Member
of the
Party
26
Zhang Committe Incum Mal 15 June
47 Septemb
Gejian e, Deputy bent e 2018
er 2024
GM and
Board
Secretary
Yuan Independe 27
Forme Mal 14 April
Hongc nt 51 Septemb
r e 2017
hang Director er 2021
Li Independe Forme Mal 45 15 June 27
52
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Qingyu nt r e 2018 Septemb
an Director er 2021
Total -- -- -- -- -- -- 0 0 0 0 0 0 0 --
Indicate whether any director, supervisor or senior management resigned before the end of their tenure during the Reporting Period.
□ Yes √ No
Change of directors, supervisors and senior management:
√ Applicable □ Not applicable
Name Office title Type of change Date of change Reason for change
Resigned upon
Yuan Independent
expiry of 27 September 2021 Resigned upon expiry of tenure
Hongchang Director
tenure
Resigned upon
Independent
Li Qingyuan expiry of 27 September 2021 Resigned upon expiry of tenure
Director
tenure
2. Biographical Information
Professional backgrounds, major work experience and current duties in the Company of the incumbent directors, supervisors and
senior management:
Members of the Board of Directors:
Mr. Liu Shengxiang, born in August 1971, is a now member of the Communist Party of China, professor-level senior engineer,
National Certified Architect (Level 1), and has obtained his Bachelor Degree, Master of Engineering, and MBA. In June 1994, he
joined Shenzhen Tagen Group Co., Ltd., and successively served as the deputy general manager, general manager, and general Party
branch secretary of Shenzhen Municipal Engineering Corp. and the deputy general manager of Shenzhen Tagen Group Co., Ltd. In
June 2013, he joined Shenzhen Road & Bridge Group as the executive director, Secretary of the Party Committee and general
manager. He starts to serve as the Secretary of the Party Committee and the Chairman (June 2018) of the Company & the Secretary
of the Party Committee, Executive director and GM (from August 2018 to May 2020) in Shenzhen Toukong Property Management
Co., Ltd. & the Secretary of the Party Committee and the Chairman of the Board (from March 2020 to now) in China Shenzhen
Foreign Trade (Group) Corp. Ltd. since September 2017. Mr. Liu Shengxiang was awarded the title of Outstanding Communist Party
Member of Shenzhen in 2001, and obtained Tien-yow Jeme Civil Engineering Prize in 2013, and May 1st Labor Medal of Shenzhen
in 2015, the Party representative of the 6th Party Congress in Shenzhen.
Mr. Wang Hangjun, born in Nov. 1966, member of Communist Party of China, is a senior auditor with a master degree of economy.
He ever took post of Deputy Chief of Audit Bureau of Nanshan District, Shenzhen; Vice Minister, Minister of Audit Department of
Shenzhen Investment and Management Company; Vice Minister, Minister of Supervision Department of Shenzhen Investment and
Management Company; Minister of Audit and Inspection Department of Shenzhen Investment Holding Co., Ltd. He has been Deputy
GM of the Company since Oct. 2007. Now he is the Director, deputy Party Secretary and GM of the Company.
Mr. Wei Xiaodong, born in January 1970, is a member of the Communist Party of China with the Bachelor’s Degree. Mr. Wei
Xiaodong ever worked in the municipal government department of Shenzhen for many years. In 2008, he began to work for
Shenzhen State-owned Assets Supervision and Administration Commission, and successively served as the deputy director and
director of Shenzhen SASAC Office. In June 2014, he served as the deputy director of Shenzhen SASAC Office, and now, he is the
Director, deputy secretary of the Party committee and Chairman of the Labor Union in the Company.
Ms. Shen Xueying, born in October 1969, Bachelor of Economics, is a senior accountant. Ms. Shen Xueying has been engaged in
53
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
the financial management of listed companies for nearly 30 years. She joined the Finance Department of the Company in 1991 and
successively served as the clerk and deputy manager of the financial management department of the Company. She was the manager
of the financial management department of the Company from 2007-2018 and now she is currently the Director and Chief Financial
Officer of the Company.
Mr. Wang Ge, born in October 1971, the member of the Communist Party of China, is now the senior engineer with the degree of
Bachelor of Engineering. Mr. Wang Ge has been engaged in the enterprise management for many years. He successively served as
the deputy director and director of the engineering department of Shenzhen Jian’an (Group) Co., Ltd., the manager and the deputy
secretary of the Party Branch of Jian’an Group Construction and Municipal Engineering Company, and the deputy general manager,
director, the deputy secretary of the Party Committee and the general manager of Jian’an Group. From March 2017 to present, he has
served as the Chief Engineer of Shenzhen Investment Holdings Co., Ltd.
Mr. Xie Chang, born in November 1971, CPC member, bachelor of engineering, senior engineer, economist, and political engineer.
He used to be the head of the Party and Mass Work Department, member of the Disciplinary Committee, and head of the Asset
Management Department of Shenzhen Jian'an (Group) Co., Ltd.; the deputy GM of Shenzhen Sibiono GeneTech Co., Ltd.; the head
of the operation management department, office director, secretary of the Board of Directors of Shenzhen Foreign Labor Service Co.,
Ltd.; office director of Shenzhen Talent Exchange Service Center Co., Ltd. He has served as the head of the comprehensive
management department of Shenzhen Investment Holdings Co., Ltd. from September 2017, and a director of the Company from
April 2020.
Mr. Mei Yonghong, born in October 1964, is the member of the Communist Party of China, and graduated from the Department of
Agriculture of Huazhong Agricultural University with the Degree of Bachelor of Agriculture. He successively served as the deputy
director of the General Office of Ministry of Science and Technology and the director of the information research office, the director
of the Policy, Regulations and System Reform Department of Ministry of Science and Technology and the mayor of Jining City in
Shandong Province. Now he serves as the Chairman of the Board of BGI Agricultural Group (starting from September 2015), Vice
president of Country Garden Group & CEO of Country Garden Holdings Co. Ltd. (starting from August 2018).
Mr. Li Donghui, born in June 1976, is a graduate with a bachelor's degree from the Audit Department of the Economics and
Management School of Wuhan University and received a PhD degree in Accounting and Finance at the University of New South
Wales Business School, Australia. He once worked as a civil servant at the Department of Financial System Audit of the National
Audit Office of the People's Republic of China and as the Executive Dean of the School of Management, Jinan University. He is
currently a distinguished professor of accounting and finance and doctoral supervisor at the College of Economics Shenzhen
University and the Director of the Committee of Professors of the college. Many of his articles were published in top international
journals and key authoritative academic journals of China. He was named a talented person of Shenzhen's overseas high-level
"Peacock Plan" and served as an expert of the Senior Title Review Committee of the Shenzhen Financial Bureau, an expert of the
Xinshen Communication Think-tank of Shenzhen Press Group and a reviewer of the National Natural Science Foundation of China.
Ms. Hu Caimei, born in September 1982, is a Doctor of Management, Postdoctoral Fellow in Economics, Associate Professor and
backup talent of Shenzhen. She currently serves as the Deputy Director of the Institute of Financial Development and State-owned
Assets and Enterprises, China Development Institute and has been long engaged in policy research and consultation in finance and
state-owned assets and enterprises, with extensive experience in the consultation on the reform and development of state-owned
assets and enterprises. She presided over and participated in a number of national, ministerial and provincial scientific research
projects and more than 50 consulting topics. Many of her research results were adopted by government departments and won
scientific research awards.
Members of the Supervisory Committee:
Mr. Dai Xianhua, was born in April 1962, doctor degree, Party member of CPC. He worked as a lecturer in School of Business and
Economy of Zhongnan University of Economics and Law from 1986 to 1989. He took posts of editor of department of theory and
review, vice director, and editor-in-chief, in Shenzhen Economic Daily from 1992 to 1997; worked in Shenzhen State Assets
54
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Administration Committee (hereinafter referred as “Shenzhen SAC”) as Vice Section Chief of Assets Management Department,
investigator of property right management Department, Vice Director, investigator of Office, and investigator of Appraisal and
Distribution Department from 1997 to 2012. Since 2012 he is the Chairman of the Supervisory Committee of the Company and is the
Party Secretary since 2020.
Mr. Zhang Manhua, born in Feb. 1975, master’s degree, member of the Communist Party of China, studied and worked in Central
South University from 1992 to 2004; Senior Manager in the Investment Center of Konka Group and concurrently worked as the
Board Secretary for Shenzhen Jvlong Optoelectronic Co., Ltd., and Investment Manager in Shenchao Technological Investment Co.,
Ltd. from 2004 to 2013; he worked as deputy director in the Strategy & Development Department in Shenzhen Investment Holding
Co., Ltd from 2013 to 2018. He is the director in Law and Risks Management department of Shenzhen Investment Holdings Co., Ltd
since 2018.
Mr. Li Qinghua, born in April 1982, has obtained his Bachelor degree. From 2003 to 2013, he worked for DZX International
Appraisal Limited, and successively served as the project assistance, the project manager and the senior manager; from 2013 to 2017,
he served as the senior executive of the property right management and legal affairs department of Shenzhen Investment Holdings
Co., Ltd., and from 2017 till now, he serves as the deputy director of the audit department of Shenzhen Investment Holdings Co., Ltd.
Ms. Wang Qiuping, born in January 1970, is a Party member and senior economist with a bachelor's degree. From 1992 to 2015, she
was engaged in management in the General Manager's Office, Accounting and Finance Department, Operation Management
Department and Development Management Department of the Company. From 2015 to 2018, she served as the Party Secretary,
Deputy General Manager and Trade Union President of ITC Property Management. From 2018 to 2020, she served as the Party
Secretary and General Manager of ITC Property Management. From 2020 to August 2021, she served as the Party Secretary,
Executive Director and General Manager of ITC Technology Park. She is currently the Party Secretary and Executive Director of
ITC Technology Park.
Ms. Gu Weimin, Born in October 1981, is the member of the Communist Party of China with the Master’s Degree. From 2007 to
2010, she served in KPMG Shenzhen in external audit; from 2011 till now, she has worked for the Company in the audit department
(the office of the board of supervisors), and is now the Deputy Secretary of the Discipline Inspection Commission and the director of
the Discipline Inspection and Supervision Office (Audit Department, the Office of the Supervisory Committee) of the Company.
Executive officers:
Mr. Wang Hangjun, born in Nov. 1966, member of Communist Party of China, is a senior auditor with a master degree of economy.
He ever took post of Deputy Chief of Audit Bureau of Nanshan District, Shenzhen; Vice Minister, Minister of Audit Department of
Shenzhen Investment and Management Company; Vice Minister, Minister of Supervision Department of Shenzhen Investment and
Management Company; Minister of Audit and Inspection Department of Shenzhen Investment Holding Co., Ltd. He has been Deputy
GM of the Company since Oct. 2007. Now he is the Director, deputy Party Secretary and GM of the Company.
Mr. Chen Hongji, born in May 1968, CPC member, postgraduate degree, and master of philosophy. He has worked in Shenzhen
Municipal People's Government for many years. He joined Shenzhen Construction Investment Holding Co., Ltd. in January 1998 and
successively served as section chief of development research department, deputy director of office, deputy director of Party
committee office and director of secretary office of board of directors. In October 2004, he joined Shenzhen Investment Holding Co.,
Ltd. and successively served as director of the party mass department and director of the board office. Since July 2012, he has been
the deputy GM of Shenzhen Expander. From December 2020, he has served as a member of the party committee and deputy GM of
the Company.
Ms. Cai Lili, Born in November 1972, is the member of the Communist Party of China, and has obtained the Master’s Degree in
Economics. Since 1995, he has worked in Shenzhen Tax Service, SAT, and ever served as the deputy chief of the taxation and
scientific and technological development department of Shenzhen Tax Service, SAT, and the member of the Party Organization and
the deputy director of Futian District Tax Bureau in Shenzhen. Currently, he is the member of the Party Committee, deputy general
manager and Chief Financial Officer.
55
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Mr. Li Peng, Born in May 1976, is the member of the Communist Party of China, the Bachelor of Engineering and the intermediate
economist. Since July 1999, he has worked for the Company as the operation manager, and successively served as the deputy
manager of the Company’s development management department, the manager of the cost control department, and the secretary of
the Party branch and the deputy general manager of Shenzhen Huangcheng Real Estate Co., Ltd. Currently, he now is the member of
the Party Committee, and deputy general manager.
Mr. Zhang Gejian, born in September 1975, the member of the Communist Party of China, MBA, is an Accountant as well as
Auditor. He was engaged in internal auditing work in Audit Department of the Company since July 1997. He acted as the audit
manager, Supervisor of the Company and concurrently the Cost Control Manager. Now he is the member of the Party Committee, the
vice GM and Board Secretary of the Company.
Ms. Shen Xueying, born in October 1969, the member of the Communist Party of China, Bachelor of Economics, is a senior
accountant. Ms. Shen Xueying has been engaged in the financial management of listed companies for nearly 30 years. She joined the
Finance Department of the Company in 1991 and successively served as the clerk and deputy manager of the financial management
department of the Company. She has been the manager of the financial management department of the Company from 2007 to 2018,
and the Chief Financial Officer of China Shenzhen Foreign Trade (Group) Co., Ltd. since March 2020, and now she is the Director,
and Chief Financial Officer of the Company.
Offices held concurrently in shareholding entities:
√Applicable □Not applicable
Remuneration or
Office held in the End of allowance from
Name Shareholding entity Start of tenure
shareholding entity tenure the shareholding
entity
Shenzhen Investment
Wang Ge Chief Engineer 1 March 2017 Yes
Holdings Co., Ltd.
Director of the
Shenzhen Investment
Xie Chang general management 7 April 2020 Yes
Holdings Co., Ltd.
department
Director of the legal
Shenzhen Investment
Zhang Manhua and risk management 1 January 2017 Yes
Holdings Co., Ltd.
department
Shenzhen Investment Deputy director of the
Li Qinghua 1 January 2017 Yes
Holdings Co., Ltd. audit department
Offices held concurrently in other entities:
√Applicable □Not applicable
Remuneratio
End
n or
of
Name Other entity Office held in the entity Start of tenure allowance
tenur
from the
e
entity
Secretary of the Party
Liu China Shenzhen Foreign Trade
Committee, and 1 March 2020 No
Shengxiang (Group) Co., Ltd.
Chairman of the Board
Shen China Shenzhen Foreign Trade
Chief Financial Officer 1 March 2020 No
Xueying (Group) Co., Ltd.
56
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Chairman of BGI
Agricultural Group, Vice
Mei BGI Agricultural Group, County president of County
1 September 2015 Yes
Yonghong Garden Garden Group & CEO
of Country Garden
Holdings Co. Ltd.
Distinguished professor,
doctoral supervisor,
Li Donghui Shenzhen University director of the Professor 1 April 2019 Yes
Committee of the
School of Economics
Deputy Director of the
Institute of Financial
China (Shenzhen) Development
Hu Caimei Development and 1 November 2016 Yes
Institute
State-owned Assets and
Enterprises
Punishments imposed in the recent three years by the securities regulator on the incumbent directors, supervisors and senior
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:
During this Reporting Period, the board and the management of the Company signed statement of operation objectives responsibility
for 2021, conducted appraisal system integrating operation indicators, classification indicators with management objectives. After the
end of this Reporting Period, assessment was implemented by the board. Remuneration of senior executives was determined
according to “Management Method of Annual salary System of Directors, Supervisors and Senior Executives of ShenZhen Properties
& Resources Development (Group) Ltd.” and “Long-term Incentive-and-Restraint Mechanism of ShenZhen Properties & Resources
Development (Group) Ltd.” and need to be implemented after the annual assessment of the board.
Remuneration of directors, supervisors and senior management for the Reporting Period
Unit: RMB'0,000
Any
Total before-tax
Incumbent/ remuneration
Name Office title Gender Age remuneration from
Former from related
the Company
party
Liu Party Secretary and Chairman of
Male 51 Incumbent 213.03 No
Shengxiang the Board
Wang Director, Deputy Party Secretary,
Male 56 Incumbent 206.23 No
Hangjun GM
57
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Wei Xiaodong Director, Deputy Party Secretary Male 52 Incumbent 178.86 No
Shen Xueying Director and CFO Female 53 Incumbent 121.96 No
Wang Ge Director Male 51 Incumbent 0 Yes
Xie Chang Director Male 50 Incumbent 0 Yes
Mei
Independent Director Male 58 Incumbent 8 Yes
Yonghong
Li Donghui Independent Director Male 50 Incumbent 2 No
Hu Caimei Independent Director Female 40 Incumbent 2 No
Yuan
Independent Director Male 51 Former 6 Yes
Hongchang
Li Qingyuan Independent Director Male 45 Former 6 No
Chairman of the Supervisory
Committee, Secretary of
Dai Xianhua Male 60 Incumbent 135.86 No
Committee for Discipline
Inspection
Zhang
Supervisor Male 47 Incumbent 0 Yes
Manhua
Li Qinghua Supervisor Male 40 Incumbent 0 Yes
Employee supervisor, executive
Wang Qiuping director of ITC Technology Park, Female 52 Incumbent 66.95 No
Party Secretary
Employee supervisor, Director of
Discipline Inspection Office, and
Gu Weimin Deputy Secretary of the Female 41 Incumbent 61.18 No
Discipline Inspection
Commission
Member of the Party Committee,
Chen Hongji Male 53 Incumbent 91.89 No
Vice GM
Member of the Party Committee,
Cai Lili Female 50 Incumbent 169.54 No
Vice GM
Member of the Party Committee,
Li Peng Male 46 Incumbent 166.26 No
Vice GM
Member of the Party Committee,
Zhang Gejian Male 47 Incumbent 160.23 No
Vice GM, Board Secretary
Total -- -- -- -- 1,595.99 --
58
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
VI Performance of Duty by Directors in the Reporting Period
1. Board Meetings Convened during the Reporting Period
Date of the
Meeting Disclosure date Resolutions
meeting
The reports deliberated and approved included the
Report on the Work of the Board of Directors in
2020, the 2020 Annual Report, the 2020 Financial
The 22nd Meeting of the 9th
2021-03-30 2021-03-31 Accounts Report and the 2021 Financial Budget
Board of Directors
Report. For details, see the Announcement on the
Resolutions of the Board of Directors (No. 2021-08)
on www.cninfo.com.cn.
The 2021 First Quarter Report of the Company was
The 23rd Meeting of the 9th deliberated and approved. For details, see the full
2021-04-28 2021-04-29
Board of Directors text of the 2021 First Quarter Report (No. 2021-21)
on www.cninfo.com.cn.
The 2021 Semi-annual Report of the Company was
The 24 Meeting of the 9
th th
deliberated and approved. For details, see the full
2021-08-27 2021-08-28
Board of Directors text of the 2021 Semi-annual Report (No. 2021-25)
on www.cninfo.com.cn.
The Proposal on the Transition of the Ninth Board
of Directors of the Company and the Proposal on
Amending the Articles of Association and Relevant
The 25th Meeting of the 9th
2021-09-10 2021-09-11 Policies were deliberated and approved. For details,
Board of Directors
see the Announcement on the Resolutions of the 25th
Meeting of the Ninth Board of Directors (No.
2021-28) on www.cninfo.com.cn.
The Proposal on the Election of Chairman of the
Tenth Board of Directors and the Proposal on the
Election of Members of the Special Committees of
The 1st Meeting of the 10th
2021-09-27 2021-09-28 the Tenth Board of Directors were deliberated and
Board of Directors
approved. For details, see the Announcement on the
Resolutions of the First Meeting of the Tenth Board
of Directors (No. 2021-35) on www.cninfo.com.cn.
The Overall Plan for the Market-oriented Selection
The 2nd Meeting of the 10th
2021-10-15 2021-10-16 and Employment of the Management Team of the
Board of Directors
Company was deliberated and approved.
The 2021 Third Quarter Report of the Company was
The 3 Meeting of the 10
rd th
deliberated and approved. For details, see the 2021
2021-10-29 2021-10-30
Board of Directors Third Quarter Report (No. 2021-41) on
www.cninfo.com.cn.
59
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
The proposals deliberated and approved included the
Proposal on the Company's 2020 Senior
Management Personnel Assessment Results and
The 4th Meeting of the 10th
2021-12-03 2021-12-04 Application Plans, the Proposal on the Term
Board of Directors
Assessment Results of the Company's Management
Team and the Proposal on Cashing the 2020
Long-acting Incentive Bonuses.
The Proposal on the Wholly-owned Subsidiary's
Acquisition of 100% Equity in Shenzhen Property
Management Co., Ltd. and Related-party
The 5th Meeting of the 10th
2021-12-13 2021-12-14 Transactions was deliberated and approved. For
Board of Directors
details, see the Announcement on the Resolutions of
the Fifth Meeting of the Tenth Board of Directors
(No. 2021-44) on www.cninfo.com.cn.
2. Attendance of Directors at Board Meetings and General Meetings
Attendance of directors at board meetings and general meetings
Total
Board Board
number of Board The director
Board meetings meetings
board meetings failed to attend General
meetings attended by the
Director meetings the attended two consecutive meetings
attended on way of director
director was through a board meetings attended
site telecommuni failed to
eligible to proxy (yes/no)
cation attend
attend
Liu Shengxiang 9 4 5 0 0 No 3
Wang Hangjun 9 4 5 0 0 No 3
Wei Xiaodong 9 4 5 0 0 No 3
Shen Xueying 9 4 5 0 0 No 3
Wang Ge 9 4 5 0 0 No 3
Xie Chang 9 4 5 0 0 No 3
Mei Yonghong 9 4 5 0 0 No 3
Li Donghui 5 2 3 0 0 No 1
Hu Caimei 5 2 3 0 0 No 1
Yuan No
4 2 2 0 0 2
Hongchang
Li Qingyuan 4 2 2 0 0 No 2
Why any director failed to attend two consecutive board meetings:
Not applicable
60
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
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 actively attended Board meetings and general meetings and performed
their duties diligently and conscientiously in strict accordance with the Articles of Association, the Rules of Procedure of the Board of
Directors and relevant laws, rules and regulations. Based on the Company's reality, they put forward relevant opinions on the
Company's major governance and operation decisions and reached consensus through sufficient communication and discussion.
Additionally, they resolutely supervised and promoted the implementation of the resolutions of the Board of Directors, to ensure
scientific, timely and efficient decision-making and safeguard the legitimate rights and interests of the Company and all shareholders.
VII Special Committees under the Board of Directors during the Reporting Period
Specific
Number of Important
Name of Other performance of disputed
Members meetings Date of meeting Contents comments and
committee duties matters (if
convened suggestions
any)
Strategic
Liu Shengxiang,
Development Guiding the preparation of
Wang Hangjun,
and the Company's strategic
Wang Ge, Xie 0 Not applicable Not applicable Not applicable
Investment planning during the "14th
Chang and Wei
Decision Five-year Plan" period.
Xiaodong
Committee
Reviewing matters concerning the renewal of
March 19, 2021 Agree
the accounting firm.
1. Reviewing the 2020 annual audit report and
the 2021 annual audit plan of the Company; 2. Supervising the work of
Reviewing the implementation of the external audit agencies and
Li Qingyuan Company's internal audit in the first quarter of
April 26, 2021 Agree the Company's internal
(outgoing), Li 2021; 3. Reviewing the reports on the audit work; supervising the
Donghui, Wang inspection of the guarantee provided by the implementation of the
Hangjun, Wei Company in 2020 and related-party
Audit Company's internal control
Xiaodong, Mei 4 transactions.
Committee policies; coordinating the
Yonghong, Yuan
1. Reviewing the implementation of the communication of the
Hongchang
Company's internal audit in the second quarter management, internal audit
(outgoing) and Hu September 10,
of 2021; 2. Reviewing the reports on the Agree departments and relevant
Caimei 2021
inspection of the guarantee provided by the departments with external
Company in the first half of 2021. audit agencies.
Reviewing the implementation of the
October 29,
Company's internal audit in the third quarter of Agree
2021
2021
Reviewing the 2020 annual performance Studying the assessment
May 31, 2021 Agree
Yuan Hongchang assessment results of the group company. standards, remuneration
(outgoing), Hu 1. Deliberating the 2020 Annual Performance policies and plans for the
Caimei, Liu Assessment Plan for the Senior Management Company's directors and
Remuneration Shengxiang, Shen Personnel of the Group and the Term senior management
and Xueying, Mei Assessment Plan for the Management Team of personnel; supervising the
2
Evaluation Yonghong, Li November 8, SZPRD; 2. Reviewing the 2020 Personal Work performance of duties by
Committee Qingyuan Agree the Company's directors
2021 Report and the Term Work Report of the
(outgoing), Li Management Team; 3. Reviewing the and senior management
Donghui and Xie Completion Table of Annual Performance personnel; conducting
Chang (Note 1) Objectives of the Senior Management annual performance
Personnel of SZPRD; 4. Deliberating the assessment on the
61
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
additional items and veto items of the 2020 Company's directors and
annual senior management personnel senior management
assessment; 5. Deliberating the list of scoring personnel and offering
personnel for the annual and term senior suggestions.
management personnel assessment.
Verifying and reviewing the qualifications of
March 20, 2021 Mr. Zhang Gejian as the Secretary of the Board Agree
of Directors of the Company
Mei Yonghong, Liu
Shengxiang, Wang Verifying and reviewing the qualifications of
September 6, Studying the size and
Ge, Yuan the candidates for the Tenth Board of Directors Agree
2021 constitution of the Board
Hongchang of the Company
Nomination of Directors and its special
(outgoing), Li 4 Verifying and reviewing the qualifications of
Committee September 27, committees and offering
Qingyuan Mr. Zhang Gejian as the Secretary of the Board Agree
2021 suggestions to the Board of
(outgoing), Hu of Directors of the Company Directors.
Caimei and Li
Donghui Reviewing the results of work reporting and
December 16, internal competition of the Company's
Agree
2021 management team and the employment of
senior management personnel
Note 1: Upon the deliberation and approval of the third meeting of the Tenth Board of Directors, Mr. Xie Chang will serve as a
member of the Remuneration and Evaluation Committee from 29 October 2021 and Mr. Liu Shengxiang is no longer a member of
such committee.
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
102
at the period-end
Number of in-service employees of major subsidiaries at the
7,556
period-end
Total number of in-service employees at the period-end 7,658
Total number of paid employees in the Reporting Period 7,658
Number of retirees to whom the Company as the parent or its
0
major subsidiaries need to pay retirement pensions
Functions
Function Employees
Production 5,420
Sales 157
Technical 1,302
Financial 191
62
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Administrative 403
Managerial 185
Total 7,658
Educational backgrounds
Educational background Employees
College and Technical secondary school graduates and above 3,127
High school graduates and below 4,531
Total 7,658
2. Employee Remuneration Policy
In 2021, the Group stuck to remuneration system of industrialization within the Group and marketization in the industry, referred to
market remuneration level of the same industry, reformed bravely and promoted the income distribution system reform and
upgrading of the subordinate companies stably by learning from external experience as well as multiple demonstration, completed
remuneration performance management system, established incremental sharing mechanism, studied and revised organization
framework design, department function division, fixed position and fixed arrangement and remuneration performance of
subordinated Companies based on marketized principle.
3. Employee Training Plans
In 2021, the Group kept improving the multi-level training system for employees, formulated training plan according to operation
development needs, and adopted both internal and external trainings, with focuses on special courses of real estate, comprehensive
management ability, job skill improvement, and other courses, organized all the employees to take part in training by grade as
planned, improved the professional quality, business ability and execution ability of staff team, enhanced the understanding and
conscientiousness for governing the enterprise by law and acting according to rules.
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 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
Bonus shares for every 10 shares (share) 0
Dividend for every 10 shares (RMB) (tax 6.80
63
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
inclusive)
Total shares as the basis for the profit distribution
595,979,092
proposal (share)
Cash dividends (RMB) (tax inclusive) 405,265,782.56
Cash dividends in other forms (such as share
0.00
repurchase) (RMB)
Total cash dividends (including those in other
405,265,782.56
forms) (RMB)
Distributable profit (RMB) 1,337,497,586.41
Total cash dividends (including those in other
100%
forms) as % of total profit distribution
Cash dividend policy
If the Company is in a mature development stage and has no plans for any significant expenditure, in profit allocation, the ratio of
cash dividends in the profit allocation shall be 80% or above.
Details about the proposal for profit distribution and converting capital reserve into share capital
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 Construction and Implementation of Internal Control System during the Reporting
Period
1. Internal Control Construction and Implementation
During the Reporting Period, the Company established, improved and effectively implemented internal control according to the Basic
Code for Internal Control of Enterprises, the Guidelines on Internal Control of Listed Companies and the Company's actual situation,
to ensure the legitimacy and compliance of business and management, guarantee scientific and rational operating procedures and
promote the normal and orderly functioning of all major processes. The Board of Directors of the Company is in full charge of the
development, implementation and improvement of the Company's internal control system and carries out regular inspections and
effect assessments on internal control. Besides, it serves as the highest decision-making body and the ultimately responsible unit for
the Company's comprehensive risk management and is responsible for the effectiveness of the Company's comprehensive risk
management. The Audit Committee under the Board of Directors is accountable to the Board of Directors and is under the direct
leadership of the Board of Directors. The Audit Committee carries out various work through internal audit departments, such as
supervising and inspecting the implementation of the internal control system, assessing the effectiveness of internal control and
offering suggestions on how to improve internal control and correct mistakes. The Board of Supervisors is in charge of supervising
and inspecting the implementation of internal control and the establishment, improvement and implementation of the risk
management system.
In 2021, the Company launched the project of risk management and internal control system optimization and financial management
64
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
system standardization, to implement the relevant requirements in the Notice on Properly Building and Supervising the Internal
Control System of Municipal State-owned Enterprises in 2021 (S.G.Z.W.H. [2021] No. 81) for promoting the modernization of
enterprise management systems and management capabilities, improving enterprise internal control systems and further enhancing
the anti-risk capabilities of enterprises, as well as to realize the Company's unified standardized management and the need to
standardize the Company's financial management and accounting for future development. The standardization of the financial
management system was basically completed within the year and the optimization framework of the risk and internal control system
was roughly established. The acceptance of the corresponding results will be completed in 2022 and the implementation will be
organized at the same time.
2. Material Internal Control Weaknesses Identified for the Reporting Period
□ Yes √ No
XIII Management and Control of Subsidiaries by the Company during the Reporting Period
Problems
Follow-up
Name of Integration encountered Solutions Settlement
Integration progress settlement
company plan in taken progress
plan
integration
1. The 1. The Group incorporated FMC
Shenzhen implementation into financial supervision in
Facility of financial September 2021; 2. In terms of
Management supervision; 2. business, FMC carried out
None None None None
Community The cooperation with ITC Property
Technology Co., strengthening Management in digital planning,
Ltd. of business standard system building and early
synergy. intervention services.
XIV Self-Evaluation Report or Independent Auditor’s Report on Internal Control
1. Internal Control Self-Evaluation Report
Disclosure date of the internal control
30 March 2022
self-evaluation report
Index to the disclosed internal control
http://www.cninfo.com.cn
self-evaluation report
Evaluated entities’ combined assets as %
99.00%
of consolidated total assets
Evaluated entities’ combined operating
revenue as % of consolidated operating 99.00%
revenue
Identification standards for internal control weaknesses
Weaknesses in internal control over Weaknesses in internal control not
Type
financial reporting related to financial reporting
Indications of the serious defect of the Major defects include: 1. Serious
Nature standard
financial report were including: 1. the violation of national laws and
65
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
control environment is invalid; regulations leading to major litigation,
2. Commitment of major fraud by or investigation of regulatory agencies,
directors, supervisors or senior ordered suspension of business for
management of the Company; rectification, investigation for criminal
3. the audit institution discovered the responsibility or replacement of senior
current financial report had great defect managers;
while the internal control of the Company 2. Abnormal major changes of
didn’t found out during the operating directors, supervisors, senior
process; management and main technical
4. Correction of major misstatement in personnel of the Company;
financial reports reported or disclosed by 3. Major decision-making errors due to
the Company; lack of internal democratic
5. the supervision of the Company’s Audit decision-making procedures or
Committee and the internal audit unscientific procedures;
department on the internal control was 4. Serious loss of core management or
invalid. technical personnel;
Indications of the important defect of the 5. Vicious negative news frequently
financial report were including: 1. didn’t appeared in the media, involving a
abide by the universally acknowledged wide range and negative existing
accounting standard to choose and apply influence;
the accounting policies; 2. had not built up 6. Significant impact on the
the anti-fraud process and the control Company’s production and operation
measures; 3. had not built up the due to lack of system control or system
corresponding control mechanism or had failure of important business;
not executed the corresponding 7. Major defects of internal control
compensating control for the accounting evaluation to be rectified;
treatment which was unconventional or 8. Any other negative circumstances
with special transaction; 4. the control generating significant impact on the
during the process of the financial report at Company.
the period-end existed one or multiple
Significant defects include: 1.
defects that could not guarantee the
Incomplete democratic
compile of the financial report reach the
decision-making process that affects
goal of being real and complete;
production and operation of the
5. Important or general defects of internal Company;
control to be rectified.
2. Violation of internal rules and
Common defect: refers to the other control regulations leading to important losses;
defect except for the above great defect
3. Exposure of negative news by the
and significant defect.
media leading to significant impact on
the Company;
4. Important defects of important
business regulations or system to be
rectified;
5. Any other negative case leading to
66
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
great impact on the Company.
Common defects: any other control
defect except for the above major and
significant defects.
Serious defect: potential misstatement of Major defects: direct property loss ≥
the operating income≥1% of the operating 1.00% of net assets of the previous
income of the consolidated statements of year;
the Company, potential misstatement of Significant defects: 0.5% of net assets
the total assets amount≥0.40% of the total of the previous year ≤ direct property
assets of the consolidated statements of the loss < 1.00% of net assets of the
Company, potential misstatement of the previous year;
net assets≥1.00% of the net assets of the Common defects: direct property loss
consolidated statements of the Company. < 0.5% of net assets of the previous
Important defect: 0.50% of the operating year.
income of the consolidated statements of
the Company≤misstatement<1% of the
operating income of the consolidated
statements of the Company; 0.2% of the
total assets of the consolidated statements
Quantitative standard of the Company ≤misstatement<0.4% of
the total assets of the consolidated
statements of the Company, 0.5% of the
net assets of the consolidated statements of
the Company ≤misstatement<1% of the
net assets of the consolidated statements of
the Company. Common defect:
misstatement of the operating
income<0.5% of the operating income of
the consolidated statements of the
Company, misstatement of the total assets
amount<0.2% of the total assets amount of
the consolidated statements of the
Company, misstatement of the net
assets<0.5% of the net assets of the
consolidated statements of the Company.
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
67
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Number of serious weaknesses in
internal control not related to financial 0
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 Properties & Resources Development (Group) Ltd. maintained efficient internal control of financial
reports in all significant aspects according to “Basic Standards of Corporate Internal Control” and relevant regulations.
Independent auditor’s report on
Disclosed
internal control disclosed or not
Disclosure date 30 March 2022
Index to such report disclosed http://www.cninfo.com.cn
Type of the auditor’s opinion Unmodified unqualified opinion
Material weaknesses in internal
control not related to financial None
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 Remediation of Problems Identified by Self-inspection in the Special Action on the
Governance of Listed Companies
In 2021, after the Company participated in the self-inspection of the special action on the governance of listed companies, the
Company's leaders attached great importance and performed self-inspection item by item according to the self-inspection
requirements of the CSRC Shenzhen. One problem was identified during the self-inspection, that is, the proportion of equity shares
held by a single shareholder and its persons acting in concert was 30% or above, but the Company failed to impose the cumulative
voting system in the Articles of Association as required.
The remediation measure is as follows: The Company held the 25th meeting of the Ninth Board of Directors on September 10, 2021
and the first extraordinary general meeting of 2021 on September 27, where the proposal on amending the Articles of Association
was deliberated and approved. Article 84 in the Articles of Association was amended from "when voting on the election of directors
and supervisors at the general meeting, the cumulative voting system may be implemented" to "when voting on the election of
directors and supervisors at the general meeting, the cumulative voting system shall be implemented". The Rules of Procedure of the
General Meeting were also amended. For details, see the Comparison Table of Amendments to the Articles of Association and
Relevant Policies (No. 2021-33) on www.cninfo.com.cn. This problem was remedied during the Reporting Period.
68
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
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 issues during the Reporting Period
Name of the Impact on the
Remediation
company or production and
Penalty reason Violation situation Penalty result measures of the
subsidiary operation of the
Company
company listed companies
N/A N/A N/A N/A N/A N/A
Other environmental information disclosed with reference to key emission units
The Company attaches great importance to environmental protection and strictly implements relevant laws and regulations. During
the Reporting Period, no major environmental violations occurred and no administrative penalties were imposed on environmental
protection.
Actions taken to reduce carbon dioxide emissions during the Reporting Period and the impact:
□ Applicable √ Not applicable
Reasons for not disclosing other environmental information
Neither the Company nor any of its subsidiaries is a heavily polluting business identified by the environmental protection authorities
of China.
II Social Responsibility
Since its inception, SZPRD has been adhering to the concept of honesty, responsibility and win-win cooperation for the benefit of
society. The Company actively fulfills its social responsibilities and always takes repaying the society as an important development
concept. It actively fulfills its statutory social responsibilities and ethical social obligations, and unifies the realization of economic
and social benefits to create an excellent corporate image. The Company carried out the following activities to perform its social
responsibility in 2021:
(I) Helping with the national fight against poverty through consumption poverty alleviation
The Party Committee of SZPRD responded actively to the call of the CPC Central Committee and the State Council for deepening
consumption poverty alleviation to help with the national fight against poverty, implemented the work arrangements of Shenzhen
SASAC and organized the implementation of consumption poverty alleviation. The consumption amount throughout the year reached
RMB1.45 million, indicating that the Company followed the central government's consumption poverty alleviation policy with heart
and soul.
(II) Visiting the seriously ill employees in difficulty
In order to ensure that the Group's Party members in need and employees in need have a warm and peaceful Spring Festival, on 29
January 2021, the Party Committee of the Group carried out a symposium to extend regards to the employees in need before the
Spring Festival. Liu Shengxiang, Secretary of the Party Committee of the Group and Chairman of the Group, Wang Hangjun, Deputy
69
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Secretary of the Party Committee of the Group and General Manager of the Group, Wei Xiaodong, Deputy Secretary of the Party
Committee of the Group and Chairman of the Labor Union of the Group, and other leaders brought gifts and money to
representatives of Party members and employees in need, with a total amount of about RMB102,000.
At the symposium, the leaders talked with the representatives of the employees in need, learned their living conditions and practical
difficulties in detail, listened to their opinions, encouraged them to maintain an optimistic attitude, face difficulties and life positively,
and establish confidence to overcome difficulties.
Liu Shengxiang, Secretary of the Party Committee of the Group and Chairman of the Group, introduced the achievements of the
Group in 2020 and the strategic plan of the 14th Five-Year Plan, and affirmed the positive contribution made by all of them to the
development of the Group by performing their duties based on their positions and overcoming difficulties. He stressed that the Group
should actively build a harmonious enterprise in the process of development, timely understand the living conditions of employees in
need, map their practical difficulties, and try their best to solve their problems, so that they can effectively feel the warmth of the
enterprise family.
(III) Conducting blood donation activities to celebrate the 100th anniversary of the founding of the Communist Party of
China
On June 29, the 10th "Red Flag, Red Action" blood donation activity was jointly organized by Shenzhen Blood Center, the joint Party
branch of Guomaomei Life Service and Shenzhen International Trade Center Building and the Party Committee of Luohu Branch of
Bank of China Shenzhen Branch. Party members, members of Chinese Communist Youth League, volunteers and citizens responded
positively and enthusiastically participated in blood donation to celebrate the 100th anniversary of the founding of the Party.
In accordance with the requirements of pandemic prevention and control, the blood donation activity adopted the approach of blood
donation in different time slots to ensure the diversion of personnel. With the assistance of medical staff and volunteers, blood donors
orderly carried out preparatory work such as registration and filling, vaccination inquiry, blood pressure measurement and blood
collection and testing. Among the blood donors were both long-time donors and first-time donors, as well as those who had
participated in previous events and had driven dozens of kilometers to attend the activity. On the day of the activity, there were 124
blood donors, 108 of whom successfully donated a total of 39,150 ml of blood.
The Party Committee of Guomaomei Life Service insists on carrying out the Party building activities themed with "Red Flag, Red
Action" every year to commemorate the birthday of the Party and let the Party members volunteer to play an exemplary role, which
has received positive responses from the owners and tenants of Shenzhen International Trade Center Building, the Renminnan
Commercial Area, the Party organizations at all levels of the Jiabei Community workstation and people from all walks of life, and
has become a Party building project with the characteristics of "the secretary takes charge of the project, the branch creates its brand,
and the Party members play the exemplary role". The activity has been held continuously for ten years, and over 800 people have
participated in the blood donation over the years, with the total amount of blood donated exceeding 300,000 ml.
(IV) The national Blood Donation Month activity by the Party Committee of the SZPRD-owned ITC Property Management
To celebrate the 100th anniversary of the founding of the CPC, practice the activity that "I do practical things for the masses", further
spread the volunteer service spirit of Shenzhen and deepen the development of the characteristic Party building brand of "One Brand
for One Enterprise", the Party Committee of the SZPRD-owned ITC Property Management launched the 10th voluntary blood
donation event on the theme of "Red Flag and Red Action" and organized affiliated enterprises to carry out the national Blood
Donation Month, aiming at making active contributions to alleviating the shortage of blood during the pandemic.
"Going in harm's way for love and walking with love", the Party Committee of the Company started this campaign with Shenzhen as
the center, and the Party members and masses of affiliated enterprises nationwide responded positively. Specifically, 11 companies
were involved, 476 persons participated in the blood donation, 385 of them donated their blood, and the amount of donated blood
reached 135,200 ml. The Company will continue to fulfill its original aspiration and mission, bring the enterprise business advantage
into full play, consolidate the enterprise Party building brand, keep promoting voluntary blood donation, fulfill its social
responsibilities and contribute to the social undertaking of voluntary blood donation.
(V) Going all the way to Yangzhou to combat the pandemic
70
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
After the outbreak of the pandemic in Yangzhou, the SZPRD-owned platform company ITC Property Management set up a special
group on August 2 according to the Group's unified arrangements and urgently prepared anti-epidemic supplies. Companies from the
Group's property segment, including ITC Technology Park, Guomaomei Life, Industrial Park Branch, High-tech Zone Branch and
Shenzhen Guomao Shenlv Garden, were organized to jointly collect anti-epidemic materials. A dozen of disinfection equipment,
nearly 1,000 kg of medicine and more than 50,000 protective appliances were sent to Yangzhou, contributing to Yangzhou's fight
against the pandemic with practical actions.
(VI) Social honors
A group of advanced collectives and individuals with outstanding performance in the implementation of the reform project in Luohu
District, Shenzhen, were honored by the Luohu District Party Committee in accordance with the requirements in the Reply of the
Office of the Coordination Group for the Evaluation and Compliance Work of Guangdong Province on the Shenzhen Municipal Party
Committee and Municipal Government's Application for Commendation and Reward Projects. SZPRD won the title of "Advanced
Collective of Reform and Innovation Award in Luohu District" owing to its courage of being a reform pioneer, enthusiasm for being a
forerunner of innovation and development and vivid reform and operation practices.
The Guangdong Association for Quality announced the selection results of 2021 Quality Benchmark Models in Guangdong Province.
After several processes such as the recommendation by quality associations and industry associations in various prefecture-level
cities in Guangdong Province and material review, the SZPRD-owned ITC Property Management won the title of "2021 Quality
Benchmark Enterprise in Guangdong Province" for the work - Management Experience of Shenzhen International Trade Center
Property Management Co., Ltd. in Implementing the Quality Management Policy.
III Efforts in Poverty Alleviation and Rural Revitalization
The Party Committee of SZPRD responded actively to the call of the CPC Central Committee and the State Council for deepening
consumption poverty alleviation to help with the national fight against poverty, implemented the work arrangements of Shenzhen
SASAC and organized the implementation of consumption poverty alleviation. The consumption amount throughout the year reached
RMB1.45 million, indicating that the Company followed the central government's consumption poverty alleviation policy with heart
and soul.
Save as disclosed above, the Company did not take any other actions for poverty alleviation and rural revitalization during the
Reporting Period, nor has it any subsequent plan in this respect.
71
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Part VI Significant Events
I Fulfillment of Commitments
1. Commitments of the Company’s Actual 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
Date of Term of
Type of
Commitment Promisor Details of commitment commitme commitme Fulfillment
commitment
nt making nt
Wholly-owned subsidiary Shenzhen
Construction Development and
majority-owned subsidiary SPG of
Commitments on
SIHC deal with real estate operation
Shenzhen horizontal
and commercial house sales, which 6
Investment competition, Three Normal
Commitments belong to the same industry of the September
Holdings Co., related-party years performance
made in Listed Company, and has horizontal 2018
Ltd. (SIHC) transactions and
acquisition competition with the Listed Company.
capital occupation
documents or To avoid horizontal competition,
shareholding SIHC make the following
alteration commitments . 1
documents Commitments on
Shenzhen horizontal To reduce and standardize related
6
Investment competition, transactions with the Listed Company, Normal
September Long-term
Holdings Co., related-party SIHC makes the following performance
2018
Ltd. transactions and commitments . 3
capital occupation
Other SIHC sighed equity transfer contract
Shenzhen Performance
commitments on 100% equity transfer of TK 23
Investment commitment and Three Normal
made to Property with the Company, and the September
Holdings Co., compensation years performance
minority contract stipulated relevant 2019
Ltd. arrangement
shareholders commitments on performance4.
Fulfilled on time Yes
Note 1: Wholly-owned subsidiary Shenzhen Construction Development and majority-owned subsidiary SPG of SIHC deal with real
estate operation and commercial house sales, which belong to the same industry of the Listed Company, and has horizontal
competition with the Listed Company. To avoid horizontal competition, SIHC make the following commitments: 1. On the horizontal
competition solution of Shenzhen Construction Development: as the holding shareholder of the Listed Company, during the listing
period at Shenzhen Stock Exchange of the Listed Company, as for the current business of Shenzhen Construction Development
which has horizontal competition with the Listed Company, within the scope permitted by law and regulation, within 12 months from
72
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
the equity of SZPRD being transferred to SIHC, SIHC will start the solution with practical operability among below horizontal
competition solution timely and complete implementation of the solution within 3 years from the date that the equity of SZPRD is
transferred to SIHC to solve current horizontal competition problems: (1) Shenzhen Construction Development signs asset custody
agreement with the Listed Company, entrusts the assets which has direct competition with the Listed Company to the Listed
Company, confirms fair custodian fee at the same time, and takes effective measures to solve horizontal competition within
commitment period; (2) Inject assets with direct competition with the Listed Company into the Listed Company; (3) Transfer assets
with direct competition with the Listed Company to unrelated third party; (4) other measures which can solve horizontal competition
effectively and is favorable for protecting the interest of the Listed Company and legal interests of other shareholders. Before solving
current horizontal competition, while company, enterprise, economic organization (not including enterprises controlled by the Listed
Company, hereinafter referred to as subordinated Companies) which the Listed Company and SIHC hold controlling shares or
controls actually have business, in case the involved dispute, etc. have major influence on the business, SIHC should keep neutral as
a controlling shareholder to ensure that the Listed Company and subordinated Companies can take part in market competition on the
principle of fair competition. 2. Horizontal competition solution of SPG: From 14 September 2016 to now, SPG has had stock
suspension because of major assets restructuring. According to Review Opinions on Delaying Stock Resumption because of Major
Assets Restructuring of SPG announced by CITIC Securities and Huatai Securities on 26 November 2016, the restructuring solution
is that SPG plans to issue A share and / or use currency to purchase 100% equity of Evergrande Group (hereinafter referred to as “the
restructuring of SPG”). On 9 November 2020, SPG issued an announcement that the current condition to continue to promote the
major assets restructuring was not sound yet based on the current market environment and decided to terminate this transaction to
safeguard interests of the company and all shareholders. After the termination of this transaction, SIHC is still the controlling
shareholder of SPG. For business of SPG which has horizontal competition with the Listed Company, SIHC, within the scope
permitted by law and regulation, SIHC will start a rational horizontal competition solution according to actual situation at the time
within 12 months after the termination of reconstruction of SPG and stock resumption announcement date, and fulfill announcement
obligation, and SPG will complete to implement the solution and solve the horizontal competition between SZPRD and SPG within 3
years from the date SPG terminates the reconstruction and announces stock resumption. 3. Other commitments to avoid horizontal
competition: as the controlling shareholder of the Listed Company and during the listing period of the Listed Company at Shenzhen
Stock Exchange, other subordinated Companies of SIHC will not engage in relevant business which has direct horizontal business
competition with the Listed Company in new business fields except for in the business field where it already has had horizontal
competition with the Listed Company. Shenzhen Investment Holdings promises not to seek improper benefits with the position of
controlling shareholder of the Listed Company and damage the interest of the Listed Company and its shareholders. In case of
violating above commitment, SIHC shall undertake corresponding legal liabilities, including but not limited to undertaking
compensation responsibilities for all losses caused to the Listed Company.
Note 2: SIHC has always been actively committed to fulfilling its relevant commitments. During the term of commitment, SIHC did
not seek any illegitimate interests as the controlling shareholding of SZPRD or damage any rights and interests of SZPRD and its
shareholders. During the term of commitment, SIHC actively collated the underlying assets and businesses of Shenzhen Construction
Development (Group) Company and devoted itself to developing practical and feasible plans as soon as possible to solve the
horizontal competition issue for SZPRD. It also actively promoted the restructuring of SPG. However, given the objective
circumstances, SIHC failed to fulfill the original commitment to avoid horizontal competition. SIHC re-issued the Letter on
Changing the Commitment to Avoiding Horizontal Competition on 31 August 2021 and such commitment change matter was
approved at the first extraordinary general meeting of 2021 held on 27 September 2021. For more details, see the Announcement on
the Application by the Company's Controlling Shareholder for Changing the Commitment to Avoiding Horizontal Competition
(Announcement No.: 2021-32) disclosed by the Company on www.cninfo.com.cn on 11 September 2021.
Note 3: To reduce and standardize related transactions with the Listed Company, as controlling shareholder of the Listed company
and during the listing period of the Listed Company at Shenzhen Exchange Stock, SIHC promises: 1. SIHC and its controlling or
actually controlled companies, enterprises, economic organizations (not including enterprises controlled by the Listed Company,
73
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
hereinafter referred to as the “subordinated companies”) will strictly exercise the rights of shareholders according to provisions of
laws, regulations, and other normative documents, and fulfill the obligations of shareholders, and keep the independence of the Listed
Company in assets, finance, employees, business and agency, etc. 2. SIHC promises not to use its position of controlling shareholder
to promote board of shareholders or board of directors to make resolutions which may damage the legal interest of the Listed
Company or other shareholders; 3. SIHC and its subordinated companies will try their best to avoid having related transactions with
the Listed Company. In case the transaction with the Listed Company is inevitable, SIHC and its subordinated companies will have
transaction with the Listed Company on the basis of equality and free will, according to fair, rational and normal commercial
transaction conditions, will not require or accept conditions which is more preferential than the Listed Company gives to the third
party in any fair market transactions, and strictly fulfill various related transactions with the Listed Company with good will. 4. SIHC
and its subordinated companies will strictly fulfill decision making procedures and relevant information disclosure obligations of
related transactions according to articles of association of the Listed Company and relevant laws and regulations. 5. SIHC and its
subordinated companies will make sure that they will not seek special interests beyond above stipulations by having related
transactions with the Listed Company, will not use related transactions to illegally transfer funds and profits of the Listed Company
and to maliciously damage the legal interests of the Listed Company and its shareholders. 6. As for current related transaction with
the Listed Company, within the scope permitted by laws and regulations, SIHC promises to confirm rational related transaction
solution within 12 months after the Company shares are transferred to SIHC, and complete to implement the solution within 5 years
after the Company shares are transferred to SIHC, to solve such related transactions completely. The specific forms include: (1) After
current related transaction contract expires, it will not be renewed. In case contract renewal is necessary according to the operation
needs of the Listed Company, it will fulfill relevant decision making procedures strictly according to procedures of related
transactions. (2) Under the precondition of possible realization, terminate contract which is being fulfilled, and adopt marketized and
open bid invitation, etc., inquire again on service items involved in such related transactions to confirm appropriate service provider.
In case related transaction is involved, it should fulfill relevant decision making procedures according to related transaction
procedures. (3) In case there is possibility of price re-negotiation in the related transaction contract which is being fulfilled, conduct
price negotiation again, make the contract amount after re-pricing conform to market price and not higher than the amount of contract
which is being fulfilled, and strictly fulfill relevant decision making procedures according to related transaction procedures.(4) Other
appropriate measures which can reduce and finally eliminate current related transaction but not necessary. 7. In case of violating
above commitments, SIHC shall undertake corresponding legal liabilities, including but not limited to undertaking compensation
liability for all the losses caused to the Listed Company.
Note 4: SIHC sighed equity transfer contract on 100% equity transfer of TK Property with the Company, and the contract stipulated:
1. SIHC promises that the cumulative net profits (net profit after deducting extraordinary items) of TK Property from 2019 to 2021
will not be less than 18% of the equity transfer payment amount of this transaction, i.e. three-year cumulative net profits ≥ equity
transfer payment * 18%. The above net profits are subject to the amount which is confirmed by audited financial report of TK
Property. 2. In case three-year cumulative profits of TK Property fails to reach above promised amount, SIHC shall compensate the
insufficient part to the Company in full amount by cash. In case three-year cumulative profits (net profit after deducting extraordinary
items) of TK Property is more than the promised amount, the Company will not refund. 3. In case SIHC needs to fulfill performance
compensation obligation, it shall complete the performance compensation obligation within 30 days after receiving the compensation
notice of the Company, and the specific delivery method will be agreed by both parties. In case SIHC delays to pay the performance
compensation, it shall pay liquidated damages of 3/10000 of unpaid amount for each day delay. In case of failing to pay for more
than 90 days, then Company has the right to cancel the contract. On 27 November 2019, the Company completed the procedures for
registration changes in industry and commerce regarding 100% equity transfer of TK Property. According to the Equity Transfer
Contract and the audit result on profit or loss of transitional period in the audit report, the final price for this equity transfer was
determined bilaterally as RMB1,027,382,513.56. So far, the Company is carrying out audit on TK Property. Where any progress
arises, the Company will fulfill the information disclosure obligation in a timely manner.
74
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
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.
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”
Issued by the Independent Auditor
□ 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 and Estimates and Correction of Material
Accounting Errors
√ Applicable □ Not applicable
Change of accounting policy: The Company has adopted the provisions of Accounting Standard for Business Enterprises No. 21
–Leases (CK [2018] No. 35) since 1 January 2021. According to cumulative effects, the Company adjusted retained earnings at the
beginning of the year and other relevant items in the financial statements, without adjustment of any information of the comparable
period. The impact of accounting policy changes includes:
Contents of changes in accounting
Items and amounts of financial statements affected
policies and reasons thereof
As per the new lease standard, on the Consolidated balance sheet:
beginning date of the lease term, As at 1 January 2021
except for short-term leases and
Right-of-use assets: RMB39,209,648.76
low-value leases for which simplified
Lease liabilities: RMB29,410,564.00
treatment is adopted, “right-of-use
Current portion of non-current liabilities: RMB9,799,084.76
assets” and “lease liabilities” are
recognized on leases. If a lease As at 31 December 2021
75
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
payment is due within one year, it Right-of-use assets: RMB71,472,680.73
shall be recorded in “current portion of Lease liabilities: RMB83,081,182.89
non-current liabilities”. Current portion of non-current liabilities: RMB14,940,651.36
Balance sheet of the Company as the parent:
As at 1 January 2021
Right-of-use assets: RMB1,523,310.37
Lease liabilities: RMB1,274,783.02
Current portion of non-current liabilities: RMB248,527.35
As at 31 December 2021
Right-of-use assets: RMB4,075,422.31
Lease liabilities: RMB2,976,367.29
Current portion of non-current liabilities: RMB1,329,083.27
VII YoY Changes to the Scope of the Consolidated Financial Statements
√ Applicable □ Not applicable
For the detailed changes to the scope of the Company’s consolidated statements of the Reporting Period, see “Part X Financial
Statements”, VIII.
VIII Engagement and Disengagement of Independent Auditor
Current independent auditor:
Name of the domestic independent auditor Baker Tilly China Certified Public Accountants (LLP)
The Company’s payment to the domestic independent auditor
84
(RMB’0,000)
How many consecutive years the domestic independent auditor
2 years
has provided audit service for the Company
Names of the certified public accountants from the domestic
Li Ming, Chen Zihan, Xu Ping
independent auditor writing signatures on the auditor’s report
How many consecutive years the certified public accountants Two years for Li Ming, two years for Chen Zihan, one year for
have provided audit service for the Company Xu Ping
Indicate by tick mark whether the independent auditor was changed for the Reporting Period.
□ Yes √ No
Independent auditor, financial advisor or sponsor engaged for the audit of internal controls:
√ Applicable □ Not applicable
In this Reporting Period, the Company engaged Baker Tilly China Certified Public Accountants (LLP) for its internal control audit
and paid an internal control audit fee of RMB0.15 million to it for the period.
76
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
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
Index
to
Involved
Executio Discl disclo
amount Provisio Decisions
General information Progress n of osure sed
(RMB’0,000 n and effects
decisions date infor
)
matio
n
The Fourth Owners'
Committee of Shenzhen
Nanshan District Software The first session of the
Park (Applicant) and arbitration has been
Shenzhen ITC Technology concluded, and the parties
Park Service Co., Ltd. to the arbitration have
(Respondent 1) and disputed the number of
High-tech Zone Branch amounts involved and
(Respondent 2) in the have applied for an audit
4,520.93 Yes Not yet Not yet
arbitration case of by a third-party auditor.
property contract dispute The audit has now been
of Software Park Phase I. completed and feedback
The Applicant requested is being sought from both
an award for Respondents parties to the dispute, and
1 and 2 to return the the final audit report will
owners' public revenue be issued shortly.
and bear the attorney's
fees.
Shenzhen Rongyao Real
Estate Development Co.,
Property preservation
Ltd. (plaintiff) sued
20,000 Not measures have been taken Not yet Not yet
Shenzhen Herunxiang
and the case is under trial.
Trade Co., Ltd.
(defendant) for property
77
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
demolition and relocation
compensation contract
dispute. After Rongyao
paid the demolition
compensation,
Herunxiang failed to
handle the cancellation of
the real property
ownership certificate of
the relevant real estate in
accordance with the
agreement, which affected
the development and
construction progress of
Rongyao.
The first instance
judgment reads that the
plaintiff Shenzhen Qitian
Sunshine Hotel
Management Co., Ltd.
Shenzhen Qitian Sunshine shall pay rent of
Hotel Management Co., RMB1,050,913.6 to the
Ltd. (plaintiff) sued defendant ShenZhen
ShenZhen Properties & Properties & Resources
Resources Development Development (Group)
(Group) Ltd. (defendant) Ltd. within ten days from
for property leasing the effective date of this
contract dispute, judgment. All the claims
1,144 Not Not yet Not yet
requesting the defendant of the plaintiff Shenzhen
to pay compensation for Qitian Sunshine Hotel
interior decoration of the Management Co., Ltd.
relocated house and were rejected, and the
relocation fee of the remaining counterclaims
leased house and to return of the defendant
the subsidy fee of the Shenzhen Property
leased house, etc. Development (Group)
Co., Ltd. were rejected.
Shenzhen Qitian
Sunshine Hotel
Management Co., Ltd.
has instituted an appeal.
See Part See Part See Part
Summary of other contract See Part XII Financial
16,155 XII XII XII
disputes Report-XIV-2
Financia Financial Financial
78
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
l Report-XI Report-X
Report- V-2 IV-2
XIV-2
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
As % of Obtainab
total Approv Over le Index
Relatio
Type Specifi Total value of ed the Metho market to
nship Pricing Trans Disclos
Relate of c value all transact appro d of price for disclos
with the princip action ure
d party transac transac (RMB’0, same-ty ion line ved settlem same-typ ed
Compa le price date
tion tion 000) pe (RMB’ line ent e inform
ny
transacti 0,000) or not transacti ation
ons ons
Relate Annou
d-party nceme
Wholly transac nt on
Shenzh
-owned tions Estima
en Bay Propert
subsidia govern ted
Techno y
ry of ing Market Agree 30 Contin
logy manag
the sales of princip ment 5,633.77 4.76% 5,500 Yes Cash 5,633.77 March uing
Develo ement
Compa commo le price 2021 Relate
pment service
ny as dity d-part
Co., s
the and y
Ltd.
parent providi Transa
ng of ctions
labors in
Shenzh Wholly Relate Manag Market Agree 30 2021
en Bay -owned d-party ement princip ment 7,912.17 8.18% 8,000 Not Cash 7912.17 March (No.:
Techno subsidia transac service le price 2021 2021-1
79
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
logy ry of tions s 1)
Develo the govern disclos
pment Compa ing ed on
Co., ny as purcha Cninfo
Ltd. the se of
parent commo
dity
and
providi
ng of
labors
Shenzh Wholly
en -owned Entrust
Shento subsidia ed
u Real ry of manag Market Agree 30
6,822.876 6,822.87
Estate the Lease ement princip ment 38.73% 5,790 Yes Cash March
827.21 6827.21
Develo Compa service le price 2021
pment ny as s of
Co.,Lt the houses
d. parent
20,368.81
Total -- -- -- 19,290 -- -- -- -- --
20373.15
Large-amount sales return in detail N/A
Give the actual situation in the
Reporting Period (if any) where an The total amount of daily related-party transactions of the Company in 2021 is expected to be
estimate had been made for the total RMB214.68 million, and actual total amount of daily related-party transactions is RMB226.66 million.
value of continuing related-party The excess amount is lower than the disclosure standard. For details, please refer to the Proposal on
transactions by type to occur in the Daily-Related Party Transactions in 2022 disclosed on the same day of this report.
Reporting Period
Reason for any significant difference
between the transaction price and the N/A
market reference price (if applicable)
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.
80
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
4. Credits and Liabilities with Related Parties
√Applicable □ Not applicable
Indicate by tick mark whether there were any credits and liabilities with related parties for non-operating purposes.
√ Yes □ No
Receivable from related parties
Capital
occupatio Amount
Beginning Amount Ending
newly
Relationship n for received in Current
Related balance added in Intere balance
current interest
with the Reason non-oper current
party (RMB’0,0 period st rate (RMB’0 (RMB’0,0
period
Company ating (RMB’0,00 ,000)
00) (RMB’0, 00)
0)
purposes 000)
(yes/no)
The parent
company of
the subsidiary Business
Shenzhen
Rongyao Real circulating
Xinhai
Estate’s funds No 40,150 40,150
Holdings
minority before
Co., Ltd.
shareholder acquisition
Xinhai
Rongyao
Shenzhen
Xinhai
Minority Business
Rongyao
shareholder of circulating
Real
the subsidiary funds No 33,047.29 33,047.29
Estate
Rongyao Real before
Develop
Estate acquisition
ment Co.,
Ltd.
Influence on the
Company’s operating All were within the risks control of the Company and not influenced the operating results and the
results and financial financial conditions.
condition
Liabilities payable to related parties
Amount
Amount
Beginning newly added Current
Relation returned in Ending
Formation balance in current Intere interest
Related party with the current balance
reason (RMB’0,000 period st rate (RMB’0,00
Company period (RMB’0,
) (RMB’0,00 0)
(RMB’0,000) 000)
0)
Shenzhen Jifa
Joint ventu Intercours
Warehouse 3,579.67 300 3,879.67
re e funds
Co., Ltd.
81
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Shenzhen
Tian’an
International
Joint ventu Intercours
Building 521.43 521.43
re e funds
Property
Management
Co., Ltd.
Influence on the Company’s
All were within the risks control of the Company and not influenced the operating results and
operating results and
the financial conditions.
financial condition
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.
7. Other Major Related-Party Transactions
√Applicable □ Not applicable
(I) Matters on entering into Entrusted Operation and Management Agreement and related party transaction
During the Reporting Period, Shenzhen SZPRD Commercial Operation Co., Ltd., a wholly-owned subsidiary of the Company, and
Shenzhen Shentou Property Development Co., Ltd., a wholly-owned subsidiary of the controlling shareholder, Shenzhen Investment
Holdings Co., Ltd. (SIHC), entered into the Entrusted Operation and Management Agreement. Shentou Development transferred the
81,775.57 square meters of its properties entrusted by Shenzhen Investment Holdings to the commercial operation company for
operation and management. The transaction will help promote the handling of historical legacy issues, improve the efficiency of the
operation and management of state-owned assets, and contribute to the improvement of the Company's operation and management
capabilities, which is in line with the long-term interests of the Company. For details, please refer to the Announcement on Entering
into Entrusted Operation and Management Agreement and Related Party Transactions (Announcement No. 2021-13) disclosed by
the Company on Cninfo (www.cninfo.com.cn) on 31 March 2021.
(II) Matters on acquisition by the wholly-owned subsidiary of 100% equity in Shenzhen Property Management Co., Ltd.,
Shenzhen Foreign Trade Property Management Co., Ltd., and three enterprises owned by Shenzhen Shenfubao (Group) Co.,
Ltd. and related party transactions
During the Reporting Period, in order to effectively enhance the overall market competitiveness of the property management segment,
build a benchmarking property management platform in Shenzhen, further expand and strengthen the Company's property
management business and enhance the development momentum of the listed company, Shenzhen International Trade Center Property
Management Co., Ltd., a wholly-owned subsidiary of the Company, intends to acquire 100% equity in Shenzhen Property
Management Co., Ltd., Shenzhen Foreign Trade Property Management Co., Ltd., Shenzhen Shenfubao Property Development Co.,
82
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Ltd., Shenzhen Shenfubao Hydropower Municipal Service Co., Ltd. and Shenzhen Free Trade Zone Security Service Co., Ltd.
Limited in cash. The aforementioned matters have been deliberated and approved at the Fifth Meeting of the Tenth Board of
Directors and the Second Extraordinary General Meeting of Shareholders in 2021. For details, please refer to the Announcement on
the Acquisition by the Wholly-Owned Subsidiary of 100 Percent of the Equity of Shenzhen Property Management Co., Ltd. and
Related Party Transactions (Announcement No. 2021-45), Announcement on the Acquisition by the Wholly-Owned Subsidiary of 100
Percent of the Equity of Shenzhen Foreign Trade Property Management Co., Ltd. and Related Party Transactions (Announcement
No. 2021-46), Announcement on the Acquisition by the Wholly-Owned Subsidiary of 100 Percent of the Equity of Three Enterprises
Owned by Shenzhen Shenfubao (Group) Co., Ltd. and Related Party Transactions (Announcement No. 2021-47), Announcement on
the Progress of the Acquisition by the Wholly-Owned Subsidiary of 100 Percent of the Equity of Shenzhen Property Management Co.,
Ltd. and Related Party Transactions (Announcement No. 2021-50), Announcement on the Progress of the Acquisition by the
Wholly-Owned Subsidiary of 100 Percent of the Equity of Shenzhen Foreign Trade Property Management Co., Ltd. and Related
Party Transactions (Announcement No. 2021-51), and Announcement on the Progress of the Acquisition by the Wholly-Owned
Subsidiary of 100 Percent of the Equity of Three Enterprises Owned by Shenzhen Shenfubao (Group) Co., Ltd. and Related Party
Transactions (Announcement No. 2021-52) disclosed by the Company on Cninfo (www.cninfo.com.cn) on 14 December and 24
December 2021.
Index to announcements on major related-party transactions
Announcement Disclosure time Disclosure website
Announcement on Entering into Entrusted Operation
and Management Agreement and Related Party 31 March 2021 http://www.cninfo.com.cn
Transactions
Announcement on the Acquisition by the
Wholly-Owned Subsidiary of 100 Percent of the Equity
14 December 2021 http://www.cninfo.com.cn
of Shenzhen Property Management Co., Ltd. and
Related Party Transactions
Announcement on the Acquisition by the
Wholly-Owned Subsidiary of 100 Percent of the Equity
14 December 2021 http://www.cninfo.com.cn
of Shenzhen Foreign Trade Property Management Co.,
Ltd. and Related Party Transactions
Announcement on the Acquisition by the
Wholly-Owned Subsidiary of 100 Percent of the Equity
14 December 2021 http://www.cninfo.com.cn
of Three Enterprises Owned by Shenzhen Shenfubao
(Group) Co., Ltd. and Related Party Transactions
Announcement on the Progress of the Acquisition by
the Wholly-Owned Subsidiary of 100 Percent of the
24 December 2021 http://www.cninfo.com.cn
Equity of Shenzhen Property Management Co., Ltd.
and Related Party Transactions
Announcement on the Progress of the Acquisition by
the Wholly-Owned Subsidiary of 100 Percent of the
24 December 2021 http://www.cninfo.com.cn
Equity of Shenzhen Foreign Trade Property
Management Co., Ltd. and Related Party Transactions
Announcement on the Progress of the Acquisition by
24 December 2021 http://www.cninfo.com.cn
the Wholly-Owned Subsidiary of 100 Percent of the
83
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Equity of Three Enterprises Owned by Shenzhen
Shenfubao (Group) Co., Ltd. and Related Party
Transactions
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'0,000
Guarantees provided by the Company as the parent and its subsidiaries for external parties (exclusive of those for subsidiaries)
Disclosur
Count Guaran
e date of
er Term tee for
the Actual Actual Having
Line of Type of Collateral guara of a
Obligor guarantee occurrenc guarantee expired
guarantee guarantee (if any) ntee guarant related
line e date amount or not
(if ee party or
announce
any) not
ment
Guarantees provided by the Company for its subsidiaries
Disclosur
Count Guaran
e date of
er Term tee for
the Actual Actual Having
Line of Type of Collateral guara of a
Obligor guarantee occurrenc guarantee expired
guarantee guarantee (if any) ntee guarant related
line e date amount or not
(if ee party or
announce
any) not
ment
84
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
27
Shenzhen
Novem
Rongyao
ber
Real 18 27
Joint-liab Security 2019 to
Estate October 500,000 Novembe 336,547 No Yes
ility deposit 20
Develop 2019 r 2019
Novem
ment Co.,
ber
Ltd.
2024
Total approved line
Total actual amount of
for such guarantees in
such guarantees in the 36,576
the Reporting Period
Reporting Period (B2)
(B1)
Total approved line Total actual balance of
for such guarantees at such guarantees at the
500,000 336,537
the end of the end of the Reporting
Reporting Period (B3) Period (B4)
Guarantees provided between subsidiaries
Disclosur
Count Guaran
e date of
er Term tee for
the Actual Actual Having
Line of Type of Collateral guara of a
Obligor guarantee occurrenc guarantee expired
guarantee guarantee (if any) ntee guarant related
line e date amount or not
(if ee party or
announce
any) not
ment
Total approved line
Total actual amount of
for such guarantees in
0 such guarantees in the
the Reporting Period
Reporting Period (C2)
(C1)
Total guarantee amount (total of the three kinds of guarantees above)
Total actual guarantee
Total guarantee line approved
amount in the
in the Reporting Period 36,576
Reporting Period
(A1+B1+C1)
(A2+B2+C2)
Total actual guarantee
Total approved guarantee line
balance at the end of
at the end of the Reporting 500,000 336,537
the Reporting Period
Period (A3+B3+C3)
(A4+B4+C4)
Total actual guarantee amount (A4+B4+C4)
75.02%
as % of the Company’s net assets
Of which:
Balance of guarantees provided for 0
85
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
shareholders, actual controller and their related
parties (D)
Balance of debt guarantees provided directly or
indirectly for obligors with an over 70% 336,537
debt/asset ratio (E)
Total of the three amounts above (D+E+F) 336,537
Compound guarantees:
3. Cash Entrusted to Other Entities for Management
(1) Cash Entrusted for Wealth Management
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(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
(I) Matters on the completion of registration of the subsidiary in Vietnam
Shenzhen International Trade Center Property Management Co., Ltd., a wholly-owned subsidiary of the Company, intends to invest
in and establish a wholly-owned subsidiary in China-Vietnam (Shenzhen-Haiphong) Economic and Trade Cooperation Zone in
Haiphong City, Vietnam, to carry out property management services in the Park, with a registered capital of USD200,000. During the
Reporting Period, the subsidiary in Vietnam completed its registration and received the Enterprise Registration Certificate from the
Business Registration Office of the Haiphong Department of Planning and Investment Decision. For details, please refer to the
Announcement on the Completion of Registration of the Subsidiary in Vietnam (Announcement No. 2021-01) disclosed by the
Company on Cninfo (www.cninfo.com.cn) on 6 January 2021.
(II) Matters on transfer for free of part of state-owned equity of the controlling shareholder to replenish the social security
fund
During the Reporting Period, SIHC, the controlling shareholder of the Company, transferred 38,037,890 shares of the Company in
unlimited circulation (representing 6.382% of the total share capital of the Company) held by SIHC to Shenzhen State-owned Equity
Management Co., Ltd. for free to replenish the social security funds. Before and after the transfer of equity, the controlling
shareholder and actual controller of the Company remained unchanged. On March 15, the share transfer registration procedures for
the aforementioned transfer of state-owned shares for free were completed. For more details, please refer to the Suggestive
86
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Announcement on the Free Transfer of Parts of State-owned Equity of the Controlling Shareholder to Replenish the Social Security
Fund (Announcement No. 2021-02) and the Announcement on the Completion of Free Transfer Registration of Parts of State-owned
Equity of the Controlling Shareholder to Replenish the Social Security Fund (Announcement No. 2021-05) disclosed by the
Company on Cninfo (www.cninfo.com.cn) on 29 January and 18 March 2021, respectively.
(III) Matters on the wholly-owned subsidiary winning the bid of the land use right
On 27 August 2021, Shenzhen SZPRD Urban Renewal Co., Ltd., a wholly-owned subsidiary of the Company, became the selected
bidder for the construction land use right of No. 2021WR023 in Humen Town, Dongguan City in the online listing auction of
state-owned construction land use right held by Dongguan City Public Resources Trading Website. On 2 September 2021, Urban
Renewal signed the Confirmation of Transaction Results with Dongguan Public Resources Trading Center and won the land plot at a
price of RMB2,070,606,666. For details, please refer to the Announcement on the Wholly-owned Subsidiary Winning the Bid of
State-owned Land Use Right (Announcement No. 2021-27) disclosed by the Company on Cninfo (www.cninfo.com.cn) on 3
September 2021.
(IV) Matters on the completion of the general election of the Board of Directors and the Board of Supervisors
On 27 September 2021, the Company held the First Extraordinary General Meeting of Shareholders in 2021, at which the Proposal
on the Election of the Company's Ninth Board of Directors and Nomination of Non-independent Directors for the Company's Tenth
Board of Directors, the Proposal on the Election of the Company's Ninth Board of Directors and Nomination of Independent
Directors for the Company's Tenth Board of Directors, and the Proposal on the Election of the Company's Ninth Board of
Supervisors were deliberated and approved. Meanwhile, the Company held the third meeting of the Seventh Workers and Employees'
Congress on 8 September 2021 to elect the employee representative supervisors of the Tenth Board of Supervisors of the Company,
and successfully completed the general election of the Tenth Board of Directors and Board of Supervisors of the Company. For
details, please refer to the Announcement on the Completion of the General Election of the Board of Directors and the Board of
Supervisors and the Appointment of the Secretary of the Board of Directors and the Securities Representative of the Company
(Announcement No. 2021-37) disclosed by the Company on Cninfo (www.cninfo.com.cn) on 28 September 2021.
(V) Matters on winning the bid of the land use right
On 25 November 2021, the Company won the state-owned land use right of Plot No. A606-0258 in Guangming, Shenzhen at
RMB1,621 million in the online listing auction of state-owned construction land use right in Shenzhen. The bid winning of the land
use right will effectively replenish the Company's land reserve and provide resources to further expand and strengthen the Company's
main business and promote the sustainable development of the real estate business segment. For details, please refer to the
Announcement on the Winning the Bid of State-owned Land Use Right (Announcement No. 2021-43) disclosed by the Company on
Cninfo (www.cninfo.com.cn) on 26 November 2021.
XVII Significant Events of Subsidiaries
□ Applicable √ Not applicable
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Part VII Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
Before Increase/decrease (+/-) After
Shares Shares
as as
divide dividen
Percentag New nd d Subtot Percenta
Shares Other Shares
e (%) issues conver converte al ge (%)
ted d from
from capital
profit reserves
1. Restricted shares 1,898,306 0.32% 0 0 0 0 0 1,898,306 0.32%
1.1 Shares held by the
0 0.00% 0 0 0 0 0 0 0.00%
state
1.2 Shares held by
3,326 0.00% 0 0 0 0 0 3,326 0.00%
state-own Legal-person
1.3 Shares held by
other domestic 1,894,980 0.32% 0 0 0 0 0 1,894,980 0.32%
investors
Among which: shares
held by domestic legal 1,894,980 0.32% 0 0 0 0 0 1,894,980 0.32%
person
Shares held by
domestic natural 0 0.00% 0 0 0 0 0 0 0.00%
person
1.4 Oversea
0 0.00% 0 0 0 0 0 0 0.00%
shareholdings
Among which: shares
held by oversea legal 0 0.00% 0 0 0 0 0 0 0.00%
person
Shares held by oversea
0 0.00% 0 0 0 0 0 0 0.00%
natural person
2. Unrestricted shares 594,080,786 99.68% 0 0 0 0 0 594,080,786 99.68%
2.1 RMB ordinary 526,475,543 88.34% 0 0 0 0 0 526,475,543 88.34%
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
shares
2.2 Domestically listed
67,605,243 11.34% 0 0 0 0 0 67,605,243 11.34%
foreign shares
2.3 Oversea listed
0 0.00% 0 0 0 0 0 0 0.00%
foreign shares
2.4 Other 0 0.00% 0 0 0 0 0 0 0.00%
3. Total shares 595,979,092 100.00% 0 0 0 0 0 595,979,092 100.00%
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
During the Reporting Period, SIHC, the controlling shareholder of the Company, transferred 38,037,890 ordinary shares of the
Company in unlimited circulation (representing 6.382% of the total share capital of the Company) held by SIHC to Shenzhen
State-owned Equity Management Co., Ltd. for free to replenish the social security funds. Shenzhen State-owned Equity Management
Co., Ltd. is a newly established wholly-owned subsidiary of SIHC to manage the transferred state-owned equity in a special account.
Before and after the transfer of equity, the controlling shareholder and actual controller of the Company remained unchanged. For
more details, see the Suggestive Announcement on the Free Transfer of Parts of State-owned Equity of Controlling Shareholders to
Enrich the Social Security Fund (Announcement No. 2021-02) disclosed on 29 January 2021. On 15 March 2021, the share transfer
registration procedures for the above-mentioned transfer of state-owned shares for free were completed.
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
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
3. Existing Staff-Held Shares
□ Applicable √ Not applicable
III Shareholders and Actual Controller
1. Shareholders and Their Shareholdings at the Period-End
Unit: share
Number of
ordinary Number of Number of preferred
Number of shareholders at preferred shareholders with resumed
ordinary 47,113 the month-end 46,391 shareholders with 0 voting rights at the month-end 0
shareholders prior to the resumed voting prior to the disclosure of this
disclosure of this rights (if any) Report (if any)
Report
5% or greater shareholders or top 10 shareholders
Shareh Increase/dec Shares, marked in
Total shares Restricte
Name of Nature of olding rease in the Unrestricted pledge or frozen
held at the d shares
shareholder shareholder percent Reporting shares held Share
period-end held Status
age Period s
Shenzhen
State-owned
Investment 50.57% 301,414,637 -38,037,890 3,326 301,411,311
legal person
Holdings Co., Ltd.
Shenzhen Domestic
State-owned Equity non-state-o
6.38% 38,037,890 38,037,890 0 38,037,890
Management Co., wned legal
Ltd. person
China Orient Asset
State-owned
Management Co., 3.90% 23,236,400 -6,561,900 0 23,236,400
legal person
Ltd.
Hong Kong
Foreign
Securities Clearing 0.69% 4,136,333 2,261,510 0 4,136,333
legal person
Company Ltd.
Domestic
Li Xinyi natural 0.60% 3,550,100 3,550,100 0 3,550,100
person
Domestic
Duan Shaoteng natural 0.29% 1,755,565 137,000 0 1,755,565
person
Shenzhen Domestic
0.29% 1,730,300 0 1,730,300 0
Duty-Free non-state-o
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Commodity wned legal
Enterprises Co., person
Ltd.
Domestic
Yang Yaochu natural 0.25% 1,500,384 0 0 1,500,384
person
Domestic
Wu Wenkai natural 0.21% 1,252,800 1,252,800 0 1,252,800
person
Domestic
Su Weipeng natural 0.19% 1,120,300 1,120,300 0 1,120,300
person
Strategic investor or general legal
person becoming a top-10 ordinary
N/A
shareholder due to rights issue (if
any)
The largest shareholder, Shenzhen Investment Holdings Co., Ltd., is the controlling
Related or acting-in-concert parties shareholder of the Company and Shenzhen State-owned Equity Management Co., Ltd.
among the shareholders above And the Company does not know whether there are related parties or acting-in-concert
parties among the other shareholders.
Explain if any of the shareholders
above was involved in
entrusting/being entrusted with N/A
voting rights or waiving voting
rights
Special account for share
repurchases (if any) among the N/A
top 10 shareholders
Top 10 unrestricted shareholders
Unrestricted shares held at the Shares by type
Name of shareholder
period-end Type Shares
Shenzhen Investment Holdings Co.,
301,411,311 RMB common share 301,411,311
Ltd.
Shenzhen State-owned Equity
38,037,890 RMB common share 38,037,890
Management Co., Ltd.
China Orient Asset Management Co.,
23,236,400 RMB common share 23,236,400
Ltd.
Hong Kong Securities Clearing
4,136,333 RMB common share 4,136,333
Company Ltd.
Li Xinyi 3,550,100 RMB common share 3,550,100
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Duan Shaoteng 1,755,565 RMB common share 1,755,565
Domestically listed
Yang Yaochu 1,500,384 1,500,384
foreign share
Wu Wenkai 1,252,800 RMB common share 1,252,800
Su Weipeng 1,120,300 RMB common share 1,120,300
Domestically listed
Mai Furong 1,103,096 1,103,096
foreign share
Related or acting-in-concert parties
The largest shareholder, Shenzhen Investment Holdings Co., Ltd., is the controlling
among top 10 unrestricted public
shareholder of the Company and Shenzhen State-owned Equity Management Co.,
shareholders, as well as between top 10
Ltd. And the Company does not know whether there are related parties or
unrestricted public shareholders and top
acting-in-concert parties among the other shareholders.
10 shareholders
Top 10 ordinary shareholders involved
N/A
in securities margin trading (if any)
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 representative Date of Unified social credit
Principal activity
shareholder /person in establishment code
charge
To execute investments and
M&A on financial equity such
as banks, securities,
insurance, funds and
guarantees and
pseudo-banking equity; to
Shenzhen Investment engage in the property
He Jianfeng 13 October 2004 914403007675664218
Holdings Co., Ltd. development and operation
business within the scale of
legally acquire the land use
right; to execute investments
and services in strategic
emerging industry; to execute
the investment, operating and
92
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
management of the
state-owned equities of the
wholly-owned, controlling
and stock-participating
enterprises through the
methods such as the
restructuring integration,
capital operation and assets
disposal; other business
developed with the authority
from the Municipal
State-owned Assets
Supervision and
Administration Commission
(if the activity needs approval
as required by state
regulations, it shall not be
operated until it is approved).
Shenzhen Textile A (000045) holds 234.07 million shares, accounting for 46.10%; SPG A
(000029) holds 642.88 million shares, accounting for 63.55%; Shenzhen Universe A (000023)
holds 9.59 million shares, accounting for 6.91%; Ping’an (601318) holds 962.72 million shares,
accounting for 5.27%; Guosen Securities (002736) holds 3,223.11 million shares, accounting for
33.53%; Guotai Jun’an (601211) holds 609.43 million A-shares and 103.37 million H-shares,
Shareholdings of the
totally accounting for 8.00%; Telling Telecommunication (000829) holds 195.03 million shares,
controlling shareholder in
accounting for 18.89%; Shenzhen International (00152) holds 952.01 million shares, accounting
other listed companies at
for 43.39%; Beauty Star (002243) holds 604.82 million shares, accounting for 49.96%; Bay Area
home or abroad in this
Development (00737) holds 2,213.45 million shares, accounting for 71.83%; Infinova (002528)
Reporting Period
holds 315.83 million shares, accounting for 26.35%; Eternal Asia (002183) holds 388.45 million
shares, accounting for 18.30%; Shenzhen Energy (000027) holds 6.77 million shares, accounting
for 0.14%; Bank of Communications (601328) holds 9.52 million shares, accounting for 0.01%;
Techand (300197) holds 113.98 million shares, accounting for 4.84%; Vanke (02202) holds 77.27
million shares, accounting for 0.67%.
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
Legal
Name of actual Date of Unified social
representative/p Principal activity
controller establishment credit code
erson in charge
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
(I) Implementing and practicing state,
provincial and municipal laws and
regulations related to management on
state-owned assets, drafting local laws,
regulations, and policies about management
on state-owned assets, and organizing
implementation activities upon approvals.
Intending to draft supervision systems and
methods about operational state-owned
assets, and organizing implementation
activities.
(II) On the basis of authorization from
municipal government, fulfilling duties of
investors according to laws and regulations,
and protecting the rights and interests of
investors for state-owned assets according to
laws
(III) Taking charge of Party-building work
for enterprises in its supervision and organs
Shenzhen Municipal entrusted
State-owned Assets (IV) Undertaking the supervision over
Supervision and Wang Yongjian 1 July 2004 K31728067 state-owned assets of municipal enterprises,
Administration strengthening management on state-owned
Commission assets, further perfecting the management
mechanism for state-owned assets with the
unification of power, obligation, and duties,
as well as the combination of managing
assets, people, and affairs
(V) Being responsible for hedging and
appreciation of the value of state-owned
assets of enterprises in its supervision,
establishing and perfecting the index system
for hedging and appreciation of the value of
state-owned assets, setting out assessment
standards, supervising on hedging and
appreciation of the value of state-owned
assets of enterprises in its supervision by
statistics, audit, and check, and urging
enterprises in its supervision to fulfill social
duties
(VI) In charge of researching and preparing
the general planning for transformation and
development of state-owned enterprise in its
94
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
supervision, guiding and boosting
transformation and re-organization of
state-owned enterprises, prompting the
construction of modern enterprise system,
carrying forward operation of state-owned
capital, pushing the strategic adjustment on
state-owned economy layout and structure,
and making state-owned capital play the role
in significant industries and key fields
including national security, national
economy lifeline, etc.
(VII) Directing and propelling enterprises in
its supervision to perfect company
governance structure, intensifying
construction of Board and Supervision
Committees of enterprises in its supervision,
and forming the governance mechanism with
specific duties, coordinating operation, and
effective counterbalance
(VIII) Assuming the management work of
income distribution for enterprises in its
supervision, and standardizing the income
distribution and position-related
consumption over people in charge of
enterprises in its supervision
(IX) In line with rules of municipal Party
committee, appointing and dismissing,
appraising, as well as, in accordance with
business performance, rewarding and
punishing people in charge of enterprises in
its supervision by applying legal procedures,
establishing the mechanism of selecting and
choosing candidates meeting the
requirements of socialist market economy
system and modern enterprise system, and
perfecting the incentive and control system
for operators
(X) Being responsible for appointing or
recommending board directors, supervisors,
CFOs to enterprises in its supervision, and
auditing on economic duties of people in
charge of enterprises in its supervision
according to rules about management
authorization to people in charge of
95
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
enterprises
(XI) In charge of preparing the draft of
budgets and final accounts of annual
state-owned capital of enterprises in its
supervision, including it to the government
budget system, organizing the execution
upon approvals, and collecting earnings of
state-owned capital handed in by enterprises
in its supervision
(XII) In charge of strategy research, policy
formulation, and guidance for
transformation, development, and asset
management related to collectively-owned
enterprises
(XIII) Assuming other assignments assigned
by municipal government and superior
departments
Shareholdings of the
actual controller in
Listed companies such as the Shenzhen Airport, YTP, Shenzhen Energy, Shenzhen Zhenye, Shenzhen
other listed companies
Tagen and SDGI.
at home or abroad in
this 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.
96
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
□ 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
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
97
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Part VIII Preference Shares
□ Applicable √ Not applicable
No preference shares in the Reporting Period.
98
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Part IX Bonds
□ Applicable √ Not applicable
99
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Part X Financial Statements
I Independent Auditor’s Report
Type of the independent auditor’s opinion Unmodified unqualified opinion
Date of signing this report 29 March 2022
Name of the independent auditor Baker Tilly China Certified Public Accountants (LLP)
Reference number of Audit Report Baker Tilly YZ[2022]No.16241
Name of the certified public accountants Li Ming, Chen Zihan, Xu Ping
Text of the Auditor’s Report
All shareholders of Shenzhen Properties & Resources Development (Group) Ltd.:
1. Opinion
We have audited the financial statements of Shenzhen Properties & Resources Development (Group) Ltd. (the “Company”), which
comprise the consolidated and parent company balance sheets as of 31 December 2021, the consolidated and parent company
statements of income, cash flows and changes in shareholders’ equity for the year then ended, as well as the notes to the financial
statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated and parent company
financial position of the Company at 31 December 2021, and the consolidated and parent company operating results and cash flows
for the year then ended, in conformity with the Chinese Accounting Standards (CAS).
2. Basis for Opinion
We conducted our audits in accordance with the Audit Standards for Chinese Registered Accountants. Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for Audit of Financial Statements section of our report. We are
independent of the Company in accordance with the China Code of Ethics for Certified Public Accountants, and we have fulfilled our
other ethical responsibilities in accordance with the said Code of Ethics. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
3. Key audit items
Key audit items are the items that are considered most important for the audit of the current financial statements based on our
professional judgment. The response to these items is based on the audit of the financial statements as a whole and the formation of
audit opinions. We do not comment on these items separately.
Key audit item Audit response
1. Recognition and measurement of revenue from real estate development and sales
SZPRD achieved a revenue of RMB3.131 billion from realOur audit procedures for this key audit issue include:
estate development projects in 2021, accounting for 69.70% ofUnderstanding and sampling key control measures related to
the total operating revenue. SZPRD confirms revenue from realproperty sales business to evaluate the effectiveness of
estate development projects when all the following conditionsimplementation of control procedures.
are met: (1) Real estate products of sales contracts underObtaining and reviewing completion acceptance documents of
100
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
development are completed and accepted; (2) Irreversible salesprojects; reviewing property sales contracts and verifying the
contracts are signed and buyers’ payment certificates areauthenticity of revenue from property sales recognized in this
received; (3) Notice of property acceptance is issued. year; checking original collection certificates or certificates of
The recognition and measurement of revenue from real estatebank mortgage procedures to determine whether full payment
business has a significant impact on the operating results ofamount is received; reviewing admission notice or other
SZPRD, which may be inaccurately measured or recognized insupporting documents on delivery of properties to evaluate
improper accounting period. Therefore, we regard thewhether revenue from property sales meets the conditions for
recognition and measurement of real estate development andrevenue recognition as stipulated by the Company’s accounting
sales revenue as key audit issues. policy.
For accounting policies and details of revenue from real estateObtaining and reviewing supporting documents for property
development and sales, please refer to Note III, (28), VI, (36) todelivery before and after the balance sheet date to evaluate
the financial statement. whether revenue from property sales is recorded in proper
accounting period.
2. Provision of increment tax on land value
The Company shall pay increment tax on land value at the rateOur audit procedures for this key audit issue include:
of 30-60% of extra progressive tax rate of increment amount onObtaining calculation data of increment tax on land value of
land value for real estate sales and development. At the end ofmain real estate development projects to review and calculate
each financial reporting period, the Management shall estimatethe accuracy of amount of increment tax on land value accrued
the provision amount of increment tax on land value. When by the Company in this year.
making estimation judgment, main factors to be included in Combining the audit revenue from real estate sales to review the
consideration shall include the provisions and explanations ofrationality of estimated amount of revenue from real estate sales
relevant tax laws and regulations, the amount of estimated made by the Management in the calculation of increment tax on
revenue from sale of real estate minus estimated deductible landland value.
cost, real estate development cost, interest expense andCombining inventory audit to review the accuracy of land cost,
development cost, etc. The actual amount in final settlement real estate development cost, interest expense and development
payable by SZPRD for increment tax on land value may becost deducted by the Management in the calculation of
different from the estimated amount. increment tax on land value.
As the importance of provision of increment tax on land value
on the profit and loss of real estate enterprises, and Management
includes the understanding of relevant tax laws and regulations
and actual practices in consideration for estimation judgment,
we determine the provision of increment tax on land value of
SZPRD as a key audit issue.
4. Other Information
The Company’s management (hereinafter referred to as the Management”) is responsible for the other information. The other
information comprises all of the information included in the Company’s 2021 Annual Report other than 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 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 this other information, we are required
101
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
to report that fact. We have nothing to report in this regard.
5. Responsibilities of Management and Those Charged with Governance for Financial Statements
The Management is responsible for the preparation of the financial statements that give a fair view in accordance with CAS, and for
designing, implementing and maintaining such internal control as the management determines is necessary to enable 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 have no realistic alternative but to do so.
Those charged with governance (hereinafter referred to as the “Governance”) are responsible for overseeing the Company’s financial
reporting process.
6. Auditor’s Responsibilities for Audit of 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 CAS 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.
As part of an audit in accordance with CAS, we exercise professional judgment and maintain professional skepticism throughout the
audit. We also:
(1) 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.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by the management.
(4) 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 by CAS to draw
users’ 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.
(5) 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.
(6) Obtain sufficient 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
Company audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding the planned scope and timing of the audit and significant audit
findings, including any noteworthy deficiencies in internal control 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 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
102
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
the audit of the consolidated 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.
Baker Tilly YZ[2022]No.16241
BeijingChina
Chinese CPA Li Ming
30 March 2022
(Engagement Partner
Chinese CPA: Chen Zihan
Chinese CPA: Xu Ping
II Financial Statements
Currency unit for the financial statements and the notes thereto: RMB
1. Consolidated Balance Sheet
Prepared by Shenzhen Properties & Resources Development (Group) Ltd.
31 December 2021
Unit: RMB
Item 31 December 2021 31 December 2020
Current assets:
Monetary assets 2,171,826,176.21 4,206,266,629.32
Settlement reserve
Interbank loans granted
Held-for-trading financial assets
103
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Derivative financial assets
Notes receivable 200,000.00 0.00
Accounts receivable 271,529,528.64 187,697,631.47
Accounts receivable financing
Prepayments 113,623,66870,897,468.33 50,543,422.85
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract
reserve
Other receivables 826,857,046.54 789,050,350.51
Including: Interest receivable
Dividends receivable
Financial assets purchased under
resale agreements
Inventories 9,123,926,016.15 5,312,489,258.20
Contract assets
Assets held for sale
Current portion of non-current
assets
Other current assets 54,162,450.68 48,991,965.92
Total current assets 12,519,398,686.55 10,595,039,258.27
Non-current assets:
Loans and advances to customers
Investments in debt obligations
Investments in other debt
obligations
Long-term receivables 23,831,889.11 0.00
Long-term equity investments 50,360,681.37 45,710,220.79
Investments in other equity
1,002,551.95 1,044,905.12
instruments
Other non-current financial assets
Investment property 449,653,849.48 484,738,506.83
Fixed assets 108,161,443.02 116,233,936.04
Construction in progress
Productive living assets
Oil and gas assets
104
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Right-of-use assets 71,472,680.73 0.00
Intangible assets 1,482,489.98 482,049.51
Development costs
Goodwill 9,446,847.38 0.00
Long-term prepaid expense 21,803,064.95 11,862,716.14
Deferred income tax assets 1,279,710,969.39 950,681,245.50
Other non-current assets 2,845,79745,571,997.85 1,564,074.34
Total non-current assets 2,062,498,465.21 1,612,317,654.27
Total assets 14,581,897,151.76 12,207,356,912.54
Current liabilities:
Short-term borrowings
Borrowings from the central bank
Interbank loans obtained
Held-for-trading financial
liabilities
Derivative financial liabilities
Notes payable
Accounts payable 337,126,528.68 468,269,685.65
Advances from customers 1,265,805.23 473,274.48
Contract liabilities 1,371,850,725.60 666,893,629.72
Financial assets sold under
repurchase agreements
Customer deposits and interbank
deposits
Payables for acting trading of
securities
Payables for underwriting of
securities
Employee benefits payable 192,804,286.38 177,190,197.36
Taxes payable 3,304,225,345.46 2,487,212,979.37
Other payables 959,398,886.29 847,142,613.09
Including: Interest payable
Dividends payable 12,202,676.04 12,202,676.04
Handling charges and commissions
payable
Reinsurance payables
Liabilities directly associated with
105
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
assets held for sale
Current portion of non-current
83,924,701.83 36,722,824.88
liabilities
Other current liabilities 77,355,792.16 43,354,691.51
Total current liabilities 6,327,952,071.63 4,727,259,896.06
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 3,524,500,000.00 3,587,800,000.00
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 83,081,182.89 0.00
Long-term payables
Long-term employee benefits
payable
Provisions 1,425,490.50 2,396,947.00
Deferred income
Deferred income tax liabilities 307,853.79 262.20
Other non-current liabilities 113,540,088.37 108,778,327.45
Total non-current liabilities 3,722,854,615.55 3,698,975,536.65
Total liabilities 10,050,806,687.18 8,426,235,432.71
Owners’ equity:
Share capital 595,979,092.00 595,979,092.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 80,488,045.38 80,488,045.38
Less: Treasury stock
Other comprehensive income -8,174,653.66 -6,749,589.41
Specific reserve
Surplus reserves 29,637,548.47 19,205,979.63
General reserve
Retained earnings 3,788,180,758.20 3,038,993,912.43
Total equity attributable to owners of
4,486,110,790.39 3,727,917,440.03
the Company as the parent
Non-controlling interests 44,979,674.19 53,204,039.80
106
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Total owners’ equity 4,531,090,464.58 3,781,121,479.83
Total liabilities and owners’ equity 14,581,897,151.76 12,207,356,912.54
Legal representative: Liu Shengxiang Head of financial affairs: Cai Lili
Head of the financial department: Liu Qiang
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 31 December 2021 31 December 2020
Current assets:
Monetary assets 1,177,352,486.44 3,216,703,036.69
Held-for-trading financial assets
Derivative financial assets
Notes receivable
Accounts receivable 2,223,974.66 2,624,500.42
Accounts receivable financing
Prepayments 5,400.00 0.00
Other receivables 2,412,506,681.28 145,325,697.20
Including: Interest receivable
Dividends receivable
Inventories 2,343,857,737.13 653,885,107.24
Contract assets
Assets held for sale
Current portion of non-current
assets
Other current assets 496,729.09 496,729.09
Total current assets 5,936,443,008.60 4,019,035,070.64
Non-current assets:
Investments in debt obligations
Investments in other debt
obligations
Long-term receivables
Long-term equity investments 1,109,826,561.76 1,071,176,101.18
Investments in other equity
1,233,051.95 1,275,405.12
instruments
107
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Other non-current financial assets
Investment property 283,198,989.66 303,827,356.62
Fixed assets 41,133,269.92 51,091,963.72
Construction in progress
Productive living assets
Oil and gas assets
Right-of-use assets 4,075,422.31 0.00
Intangible assets
Development costs
Goodwill
Long-term prepaid expense 259,463.73 432,440.01
Deferred income tax assets 190,014,842.35 252,331,518.26
Other non-current assets 1,718,846,484.20 1,197,407,234.55
Total non-current assets 3,348,588,085.88 2,877,542,019.46
Total assets 9,285,031,094.48 6,896,577,090.10
Current liabilities:
Short-term borrowings
Held-for-trading financial
liabilities
Derivative financial liabilities
Notes payable
Accounts payable 48,640,839.24 55,887,947.36
Advances from customers 425,164.77 0.00
Contract liabilities 524,139,983.49 0.00
Employee benefits payable 49,313,279.30 50,710,148.02
Taxes payable 4,678,424.25 3,736,082.67
Other payables 5,963,004,158.44 3,971,988,862.11
Including: Interest payable
Dividends payable 29,642.40 29,642.40
Liabilities directly associated with
assets held for sale
Current portion of non-current
65,163,793.74 31,573,154.86
liabilities
Other current liabilities 47,172,598.51 0.00
Total current liabilities 6,702,538,241.74 4,113,896,195.02
108
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Non-current liabilities:
Long-term borrowings 525,100,000.00 588,200,000.00
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 2,976,367.29 0.00
Long-term payables
Long-term employee benefits
payable
Provisions
Deferred income
Deferred income tax liabilities
Other non-current liabilities 40,000,000.00 40,000,000.00
Total non-current liabilities 568,076,367.29 628,200,000.00
Total liabilities 7,270,614,609.03 4,742,096,195.02
Owners’ equity:
Share capital 595,979,092.00 595,979,092.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 53,876,380.11 53,876,380.11
Less: Treasury stock
Other comprehensive income -2,574,121.54 -2,545,451.19
Specific reserve
Surplus reserves 29,637,548.47 19,205,979.63
Retained earnings 1,337,497,586.41 1,487,964,894.53
Total owners’ equity 2,014,416,485.45 2,154,480,895.08
Total liabilities and owners’ equity 9,285,031,094.48 6,896,577,090.10
3. Consolidated Income Statement
Unit: RMB
Item 2021 2020
1. Revenue 4,491,965,643.71 4,104,374,646.02
Including: Operating revenue 4,491,965,643.71 4,104,374,646.02
109
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Interest income
Insurance premium income
Handling charge and commission
income
2. Costs and expenses 3,186,363,257.38 3,094,700,417.31
Including: Cost of sales 1,490,887,362.16 1,386,710,239.54
Interest expense
Handling charge and commission
expense
Surrenders
Net insurance claims paid
Net amount provided as insurance
contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surcharges 1,350,592,570.19 1,313,348,228.48
Selling expense 73,350,782.18 44,753,247.18
Administrative expense 263,700,171.29 238,625,143.31
R&D expense 2,171,797.80 0.00
Finance costs 5,660,573.76 111,263,558.80
Including: Interest expense 75,361,420.03 182,930,469.55
Interest
74,598,590.37 72,357,101.87
income
Add: Other income 29,987,189.34 12,770,810.75
Return on investment (“-” for
4,650,460.58 634,098.07
loss)
Including: Share of profit or loss of
4,650,460.58 634,098.07
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)
Credit impairment loss (“-” for loss) -29,082,610.26 4,623,356.81
Asset impairment loss (“-” for loss) 23,120.82 -51,185.46
110
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Asset disposal income (“-” for loss) 27.94 2,311.70
3. Operating profit (“-” for loss) 1,311,180,574.75 1,027,653,620.58
Add: Non-operating income 9,411,411.47 11,697,661.23
Less: Non-operating expense 6,547,898.88 5,244,329.50
4. Profit before tax (“-” for loss) 1,314,044,087.34 1,034,106,952.31
Less: Income tax expense 327,285,386.29 302,769,082.58
5. Net profit (“-” for net loss) 986,758,701.05 731,337,869.73
5.1 By operating continuity
5.1.1 Net profit from continuing
986,758,701.05 731,337,869.73
operations (“-” for net loss)
5.1.2 Net profit from discontinued
operations (“-” for net loss)
5.2 By ownership
5.2.1 Net profit attributable to
shareholders of the Company as the 1,003,969,842.33 798,572,121.74
parent
5.2.1 Net profit attributable to
-17,211,141.28 -67,234,252.01
non-controlling interests
6. Other comprehensive income, net of
-1,425,064.25 -4,051,217.97
tax
Attributable to owners of the Company
-1,425,064.25 -4,051,217.97
as the parent
6.1 Items that will not be reclassified to
-28,670.35 -494,182.95
profit or loss
6.1.1 Changes caused by
remeasurements on defined benefit
schemes
6.1.2 Other comprehensive income that
will not be reclassified to profit or loss
under the equity method
6.1.3 Changes in the fair value of
-28,670.35 -494,182.95
investments in other equity instruments
6.1.4 Changes in the fair value arising
from changes in own credit risk
6.1.5 Other
6.2 Items that will be reclassified to
-1,396,393.90 -3,557,035.02
profit or loss
6.2.1 Other comprehensive income that
will be reclassified to profit or loss
under the equity method
111
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
6.2.2 Changes in the fair value of
investments in other debt obligations
6.2.3 Other comprehensive income
arising from the reclassification of
financial assets
6.2.4 Credit impairment allowance for
investments in other debt obligations
6.2.5 Reserve for cash flow hedges
6.2.6 Differences arising from the
translation of foreign
-1,396,393.90 -3,557,035.02
currency-denominated financial
statements
6.2.7 Other
Attributable to non-controlling
interests
7. Total comprehensive income 985,333,636.80 727,286,651.76
Attributable to owners of the Company
1,002,544,778.08 794,520,903.77
as the parent
Attributable to non-controlling
-17,211,141.28 -67,234,252.01
interests
8. Earnings per share
8.1 Basic earnings per share 1.6846 1.3399
8.2 Diluted earnings per share 1.6846 1.3399
Where business combinations under common control occurred in the Current Period, the net profit achieved by the acquirees before
the combinations was RMB0.00, with the amount for the same period of last year being RMB0.00.
Legal representative: Liu Shengxiang Head of financial affairs: Cai Lili
Head of the financial department: Liu Qiang
4. Income Statement of the Company as the Parent
Unit: RMB
Item 2021 2020
1. Operating revenue 80,529,601.93 64,151,369.60
Less: Cost of sales 38,571,950.27 45,749,528.01
Taxes and surcharges 7,146,348.46 8,552,661.46
Selling expense 2,006,401.50 2,287,301.10
Administrative expense 95,334,812.14 98,340,542.43
R&D expense
112
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Finance costs -34,874,500.11 -43,492,708.54
Including: Interest expense 25,501,758.97 15,950,523.75
Interest income 62,777,061.34 65,751,243.49
Add: Other income 20,102,972.08 253,884.96
Return on investment (“-” for
134,368,018.21 116,246,519.46
loss)
Including: Share of profit or loss of
4,650,460.58 634,098.07
joint ventures and associates
Income from the derecognition of
financial assets at amortized cost (“-”
for loss)
Net gain on exposure hedges
(“-” for loss)
Gain on changes in fair value
(“-” for loss)
Credit impairment loss (“-” for loss) -356,512.44 -116,544.34
Asset impairment loss (“-” for loss)
Asset disposal income (“-” for loss)
2. Operating profit (“-” for loss) 126,459,067.52 69,097,905.22
Add: Non-operating income 7,173,820.40 9,989,210.85
Less: Non-operating expense 169,457.44 374,965.45
3. Profit before tax (“-” for loss) 133,463,430.48 78,712,150.62
Less: Income tax expense 29,147,742.04 50,688,730.41
4. Net profit (“-” for net loss) 104,315,688.44 28,023,420.21
4.1 Net profit from continuing
104,315,688.44 28,023,420.21
operations (“-” for net loss)
4.2 Net profit from discontinued
operations (“-” for net loss)
5. Other comprehensive income, net
-28,670.35 -494,182.95
of tax
5.1 Items that will not be reclassified
-28,670.35 -494,182.95
to profit or loss
5.1.1 Changes caused by
remeasurements on defined benefit -28,670.35 -494,182.95
schemes
5.1.2 Other comprehensive income
that will not be reclassified to profit
or loss under the equity method
5.1.3 Changes in the fair value of -28,670.35 -494,182.95
113
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
investments in other equity
instruments
5.1.4 Changes in the fair value arising
from changes in own credit risk
5.1.5 Other
5.2 Items that will be reclassified to
profit or loss
5.2.1 Other comprehensive income
that will be reclassified to profit or
loss under the equity method
5.2.2 Changes in the fair value of
investments in other debt obligations
5.2.3 Other comprehensive income
arising from the reclassification of
financial assets
5.2.4 Credit impairment allowance
for investments in other debt
obligations
5.2.5 Reserve for cash flow hedges
5.2.6 Differences arising from the
translation of foreign
currency-denominated financial
statements
5.2.7 Other
6. Total comprehensive income 104,287,018.09 27,529,237.26
7. Earnings per share
7.1 Basic earnings per share 0.175 0.047
7.2 Diluted earnings per share 0.175 0.047
5. Consolidated Cash Flow Statement
Unit: RMB
Item 2021 2020
1. Cash flows from operating
activities:
Proceeds from sale of commodities
5,427,495,607.22 4,390,400,364.60
and rendering of services
Net increase in customer deposits
and interbank deposits
Net increase in borrowings from
the central bank
114
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
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, handling charges and
commissions received
Net increase in interbank loans
obtained
Net increase in proceeds from
repurchase transactions
Net proceeds from acting trading of
securities
Tax rebates 42,432,605.34 17,586,334.90
Cash generated from other
238,654,515.38 401,974,306.32
operating activities
Subtotal of cash generated from
5,708,582,727.94 4,809,961,005.82
operating activities
Payments for commodities and
4,680,560,459.83 1,398,688,587.24
services
Net increase in loans and advances to
customers
Net increase in deposits in the
central bank and in interbank loans
granted
Payments for claims on original
insurance contracts
Net increase in interbank loans
granted
Interest, handling charges and
commissions paid
Policy dividends paid
Cash paid to and for employees 741,779,645.12 660,768,525.22
Taxes paid 1,520,437,154.36 2,200,056,926.04
Cash used in other operating
579,118,477.21 164,949,185.20
activities
Subtotal of cash used in operating
7,521,895,736.52 4,424,463,223.70
activities
Net cash generated from/used in
-1,813,313,008.58 385,497,782.12
operating activities
115
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
2. Cash flows from investing
activities:
Proceeds from disinvestment
Return on investment
Net proceeds from the disposal of
fixed assets, intangible assets and 30,506.93 136,131.48
other long-lived assets
Net proceeds from the disposal of
subsidiaries and other business units
Cash generated from other investing
activities
Subtotal of cash generated from
30,506.93 136,131.48
investing activities
Payments for the acquisition of fixed
assets, intangible assets and other 22,581,359.73 48,482,853.70
long-lived assets
Payments for investments 42,726,200.00
Net increase in pledged loans
granted
Net payments for the acquisition of
4,292,240.68
subsidiaries and other business units
Cash used in other investing activities
Subtotal of cash used in investing
69,599,800.41 48,482,853.70
activities
Net cash generated from/used in
-69,569,293.48 -48,346,722.22
investing activities
3. Cash flows from financing
activities:
Capital contributions received 140,000.00 1,820,000.00
Including: Capital contributions by
non-controlling interests to 140,000.00 1,820,000.00
subsidiaries
Borrowings raised 2,175,000,000.00
Cash generated from other financing
activities
Subtotal of cash generated from
140,000.00 2,176,820,000.00
financing activities
Repayment of borrowings 31,000,000.00 750,133,000.00
Interest and dividends paid 434,126,408.58 411,945,003.98
Including: Dividends paid by
subsidiaries to non-controlling
116
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
interests
Cash used in other financing
20,052,203.22 465,807,569.82
activities
Subtotal of cash used in financing
485,178,611.80 1,627,885,573.80
activities
Net cash generated from/used in
-485,038,611.80 548,934,426.20
financing activities
4. Effect of foreign exchange rates
-1,487,028.62 -3,275,807.74
changes on cash and cash equivalents
5. Net increase in cash and cash
-2,369,407,942.48 882,809,678.36
equivalents
Add: Cash and cash equivalents,
4,168,154,911.83 3,285,345,233.47
beginning of the period
6. Cash and cash equivalents, end of
1,798,746,969.35 4,168,154,911.83
the period
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item 2021 2020
1. Cash flows from operating
activities:
Proceeds from sale of commodities
655,800,441.53 64,857,663.10
and rendering of services
Tax rebates 33,168,933.87
Cash generated from other
2,571,773,113.99 2,016,415,754.18
operating activities
Subtotal of cash generated from
3,260,742,489.39 2,081,273,417.28
operating activities
Payments for commodities and
1,726,321,339.89 67,846,809.36
services
Cash paid to and for employees 63,355,236.26 50,551,468.21
Taxes paid 12,501,445.12 1,296,096,715.75
Cash used in other operating
3,120,104,282.29 352,366,216.10
activities
Subtotal of cash used in operating
4,922,282,303.56 1,766,861,209.42
activities
Net cash generated from/used in
-1,661,539,814.17 314,412,207.86
operating activities
2. Cash flows from investing
activities:
Proceeds from disinvestment 50,000,000.00 565,000,000.00
117
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Return on investment
Net proceeds from the disposal of
fixed assets, intangible assets and 2,344.57 7,398.06
other long-lived assets
Net proceeds from the disposal of
subsidiaries and other business units
Cash generated from other investing
activities
Subtotal of cash generated from
50,002,344.57 565,007,398.06
investing activities
Payments for the acquisition of fixed
assets, intangible assets and other 2,309,879.80 33,629,541.56
long-lived assets
Payments for investments 466,000,000.00 495,807,569.82
Net payments for the acquisition of
subsidiaries and other business units
Cash used in other investing activities
Subtotal of cash used in investing
468,309,879.80 529,437,111.38
activities
Net cash generated from/used in
-418,307,535.23 35,570,286.68
investing activities
3. Cash flows from financing
activities:
Capital contributions received
Borrowings raised 619,000,000.00
Cash generated from other financing
activities
Subtotal of cash generated from
619,000,000.00
financing activities
Repayment of borrowings 30,800,000.00
Interest and dividends paid 269,890,778.58 229,729,842.01
Cash used in other financing
1,198,076.70
activities
Subtotal of cash used in financing
301,888,855.28 229,729,842.01
activities
Net cash generated from/used in
-301,888,855.28 389,270,157.99
financing activities
4. Effect of foreign exchange rates
-12,608.83 -28,110.51
changes on cash and cash equivalents
5. Net increase in cash and cash
-2,381,748,813.51 739,224,542.02
equivalents
118
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Add: Cash and cash equivalents,
3,190,160,215.19 2,450,935,673.17
beginning of the period
6. Cash and cash equivalents, end of
808,411,401.68 3,190,160,215.19
the period
7. Consolidated Statements of Changes in Owners’ Equity
2021
Unit: RMB
2021
Equity attributable to owners of the Company as the parent
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me
595
80,4 -6,7 19,2 3,03 3,72 53,2 3,78
1. Balance as ,97
88,0 49,5 05,9 8,99 7,91 04,0 1,12
at the end of 9,0
45.3 89.4 79.6 3,91 7,44 39.8 1,47
the prior year 92.
8 1 3 2.43 0.03 0 9.83
00
Add:
Adjustment
for change in
accounting
policy
Adjustment
for correction
of previous
error
Adjustment
for business
combination
under
common
control
Other
adjustments
2. Balance as 595 80,4 -6,7 19,2 3,03 3,72 53,2 3,78
at the ,97 88,0 49,5 05,9 8,99 7,91 04,0 1,12
119
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
beginning of 9,0 45.3 89.4 79.6 3,91 7,44 39.8 1,47
the year 92. 8 1 3 2.43 0.03 0 9.83
00
3. Increase/
-1,4 10,4 749, 758, -8,2 749,
decrease in
25,0 31,5 186, 193, 24,3 968,
the period
64.2 68.8 845. 350. 65.6 984.
(“-” for
5 4 77 36 1 75
decrease)
-1,4 1,00 1,00 -17, 985,
3.1 Total
25,0 3,96 2,54 211, 333,
comprehensiv
64.2 9,84 4,77 141. 636.
e income
5 2.33 8.08 28 80
3.2 Capital
8,98 8,98
increased and
6,77 6,77
reduced by
5.67 5.67
owners
3.2.1
Ordinary 140, 140,
shares 000. 000.
increased by 00 00
owners
3.2.2 Capital
increased by
holders of
other equity
instruments
3.2.3
Share-based
payments
included in
owners’
equity
8,84 8,84
3.2.4 Other 6,77 6,77
5.67 5.67
10,4 -254 -244 -244
3.3 Profit 31,5 ,782, ,351, ,351,
distribution 68.8 996. 427. 427.
4 56 72 72
3.3.1 10,4 -10,
Appropriation 31,5 431,
to surplus 68.8 568.
reserves 4 84
120
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
3.3.2
Appropriation
to general
reserve
3.3.3 -244 -244 -244
Appropriation ,351, ,351, ,351,
to owners (or 427. 427. 427.
shareholders) 72 72 72
3.3.4
Other
3.4
Transfers
within
owners’
equity
3.4.1
Increase in
capital (or
share capital)
from capital
reserves
3.4.2
Increase in
capital (or
share capital)
from surplus
reserves
3.4.3
Loss offset by
surplus
reserves
3.4.4
Changes in
defined
benefit
schemes
transferred to
retained
earnings
3.4.5
Other
comprehensiv
e income
transferred to
121
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
retained
earnings
3.4.6
Other
3.5 Specific
reserve
3.5.1
Increase in
the period
3.5.2
Used in the
period
3.6 Other
595
80,4 -8,1 29,6 3,78 4,48 44,9 4,53
4. Balance as ,97
88,0 74,6 37,5 8,18 6,11 79,6 1,09
at the end of 9,0
45.3 53.6 48.4 0,75 0,79 74.1 0,46
the period 92.
8 6 7 8.20 0.39 9 4.58
00
2020
Unit: RMB
2020
Equity attributable to owners of the Company as the parent
Other equity
Othe
instruments
Less r Non- Total
Pr Pe contr owne
Item Sha Capi : com Spec Surp Gen Reta
efe rpe olling rs’
re tal Trea preh ific lus eral ined Othe Subt
rre tua intere equit
cap Oth reser sury ensi reser reser reser earni r otal
d l sts y
ital er ves stoc ve ve ves ve ngs
sh bo
k inco
are nd
me
s s
595
80,4 -2,6 17,0 2,45 3,14 3,266
1. Balance as ,97 118,6
88,0 98,3 60,4 7,11 7,94 ,567,
at the end of 9,0 18,29
45.3 71.4 48.0 9,79 9,00 301.1
the prior year 92. 1.81
8 4 5 5.39 9.38 9
00
Add:
Adjustment
for change in
accounting
policy
122
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Adjustment
for correction
of previous
error
Adjustment
for business
combination
under
common
control
Other
adjustments
595
2. Balance as 80,4 -2,6 17,0 2,45 3,14 3,266
,97 118,6
at the 88,0 98,3 60,4 7,11 7,94 ,567,
9,0 18,29
beginning of 45.3 71.4 48.0 9,79 9,00 301.1
92. 1.81
the year 8 4 5 5.39 9.38 9
00
3. Increase/
-4,0 581, 579,
decrease in 2,14 -65,4 514,5
51,2 874, 968,
the period 5,53 14,25 54,17
17.9 117. 430.
(“-” for 1.58 2.01 8.64
7 04 65
decrease)
-4,0 798, 794,
3.1 Total -67,2 727,2
51,2 572, 520,
comprehensi 34,25 86,65
17.9 121. 903.
ve income 2.01 1.76
7 74 77
3.2 Capital
1,820 1,820
increased and
,000. ,000.
reduced by
00 00
owners
3.2.1
Ordinary 1,820 1,820
shares ,000. ,000.
increased by 00 00
owners
3.2.2 Capital
increased by
holders of
other equity
instruments
3.2.3
Share-based
123
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
payments
included in
owners’
equity
3.2.4 Other
-216 -214
2,14 -214,
3.3 Profit ,698, ,552
5,53 552,4
distribution 004. ,473
1.58 73.12
70 .12
3.3.1 -2,8
2,80
Appropriatio 02,3
2,34
n to surplus 42.0
2.02
reserves 2
3.3.2
Appropriatio
n to general
reserve
3.3.3
-214 -214
Appropriatio -214,
,552, ,552
n to owners 552,4
473. ,473
(or 73.12
12 .12
shareholders)
-656 656,
3.3.4
,810. 810.
Other
44 44
3.4
Transfers
within
owners’
equity
3.4.1
Increase in
capital (or
share capital)
from capital
reserves
3.4.2
Increase in
capital (or
share capital)
from surplus
reserves
3.4.3
124
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Loss offset
by surplus
reserves
3.4.4
Changes in
defined
benefit
schemes
transferred to
retained
earnings
3.4.5
Other
comprehensi
ve income
transferred to
retained
earnings
3.4.6
Other
3.5 Specific
reserve
3.5.1
Increase in
the period
3.5.2
Used in the
period
3.6 Other
595
80,4 -6,7 19,2 3,03 3,72 3,781
4. Balance as ,97 53,20
88,0 49,5 05,9 8,99 7,91 ,121,
at the end of 9,0 4,039
45.3 89.4 79.6 3,91 7,44 479.8
the period 92. .80
8 1 3 2.43 0.03 3
00
8. Statements of Changes in Owners’ Equity of the Company as the Parent
2021
Unit: RMB
2021
Share Other equity Capita Less: Other Specifi Surplu Retai Total
Item
capit instruments l Treasu compr c s ned Other owners’
al Prefe Perp Othe reserv ry ehensi reserv reserv earni equity
125
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
rred etual r es stock ve e es ngs
share bond incom
s s e
1,48
1. Balance as 595,9 53,876 19,205
-2,545, 7,96 2,154,48
at the end of 79,09 ,380.1 ,979.6
451.19 4,89 0,895.08
the prior year 2.00 1 3
4.53
Add:
Adjustment
for change in
accounting
policy
Adjustment
for correction
of previous
error
Other
adjustments
2. Balance as 1,48
595,9 53,876 19,205
at the -2,545, 7,96 2,154,48
79,09 ,380.1 ,979.6
beginning of 451.19 4,89 0,895.08
2.00 1 3
the year 4.53
3. Increase/ -150,
10,431
decrease in the -28,67 467, -140,064
,568.8
period (“-” for 0.35 308. ,409.63
4
decrease) 12
104,
3.1 Total
-28,67 315, 104,287,
comprehensive
0.35 688. 018.09
income
44
3.2 Capital
increased and
reduced by
owners
3.2.1 Ordinary
shares
increased by
owners
3.2.2 Capital
increased by
holders of
other equity
instruments
126
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
3.2.3
Share-based
payments
included in
owners’ equity
3.2.4 Other
-254,
10,431
3.3 Profit 782, -244,351
,568.8
distribution 996. ,427.72
4
56
3.3.1 -10,4
10,431
Appropriation 31,5
,568.8
to surplus 68.8
4
reserves 4
3.3.2
Appropriation
to owners (or
shareholders)
-244,
3.3.3 351, -244,351
Other 427. ,427.72
72
3.4
Transfers
within owners’
equity
3.4.1
Increase in
capital (or
share capital)
from capital
reserves
3.4.2
Increase in
capital (or
share capital)
from surplus
reserves
3.4.3
Loss offset by
surplus
reserves
3.4.4
127
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Changes in
defined benefit
schemes
transferred to
retained
earnings
3.4.5
Other
comprehensive
income
transferred to
retained
earnings
3.4.6
Other
3.5 Specific
reserve
3.5.1
Increase in the
period
3.5.2
Used in the
period
3.6 Other
1,33
4. Balance as 595,9 53,876 29,637
-2,574, 7,49 2,014,41
at the end of 79,09 ,380.1 ,548.4
121.54 7,58 6,485.45
the period 2.00 1 7
6.41
2020
Unit: RMB
2020
Other equity
Other
instruments
Shar Capit Less: compr Surpl Retaine
Pref Specifi Total
Item e al Treas ehensi us d
Perp
erre c Other owners’
capit etual Othe reserv ury ve reserv earning
d reserve equity
al bon r es stock incom es s
shar
ds e
es
595,
1. Balance as 53,87 -2,051 16,40 1,677,2
979, 2,341,50
at the end of 6,380. ,268.2 3,637 96,289.
092. 4,130.94
the prior year 11 4 .61 46
00
128
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Add:
Adjustment
for change in
accounting
policy
Adjustment
for correction
of previous
error
Other
adjustments
2. Balance as 595,
53,87 -2,051 16,40 1,677,2
at the 979, 2,341,50
6,380. ,268.2 3,637 96,289.
beginning of 092. 4,130.94
11 4 .61 46
the year 00
3. Increase/
decrease in 2,802 -189,33
-494,1 -187,023,
the period ,342. 1,394.9
82.95 235.86
(“-” for 02 3
decrease)
3.1 Total
-494,1 28,023, 27,529,2
comprehensiv
82.95 420.21 37.26
e income
3.2 Capital
increased and
reduced by
owners
3.2.1
Ordinary
shares
increased by
owners
3.2.2 Capital
increased by
holders of
other equity
instruments
3.2.3
Share-based
payments
included in
owners’
equity
129
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
3.2.4 Other
2,802 -217,35
3.3 Profit -214,552,
,342. 4,815.1
distribution 473.12
02 4
3.3.1
2,802
Appropriatio -2,802,
,342.
n to surplus 342.02
02
reserves
3.3.2
Appropriatio -214,55
-214,552,
n to owners 2,473.1
473.12
(or 2
shareholders)
3.3.3
Other
3.4
Transfers
within
owners’
equity
3.4.1
Increase in
capital (or
share capital)
from capital
reserves
3.4.2
Increase in
capital (or
share capital)
from surplus
reserves
3.4.3
Loss offset
by surplus
reserves
3.4.4
Changes in
defined
benefit
schemes
transferred to
retained
130
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
earnings
3.4.5
Other
comprehensiv
e income
transferred to
retained
earnings
3.4.6
Other
3.5 Specific
reserve
3.5.1
Increase in
the period
3.5.2
Used in the
period
3.6 Other
595,
4. Balance as 53,87 -2,545 19,20 1,487,9
979, 2,154,48
at the end of 6,380. ,451.1 5,979 64,894.
092. 0,895.08
the period 11 9 .63 53
00
III Company Profile
Shenzhen Properties & Resources Development (Group) Ltd. (hereinafter referred to as “the Company” or “Company”) was
incorporated based on the reconstruction of Shenzhen Properties & Resources Development Co., Ltd. after obtaining approval of
ZFBF [1991] No. 831 from People’s Government of Shenzhen Municipality. It was registered with Shenzhen Industrial and
Commercial Administration Bureau on 17 January 1983 with Shenzhen as its headquarters. Now the Company holds the business
license for legal person with the registration number/unified social credit code of 91440300192174135N. The registered capital was
RMB595,979,092 with the total shares of 595,979,092 (RMB1 face value per share), among which, restricted public shares:
1,898,306 A shares and 0 B shares; unrestricted public shares: 526,475,543 A shares and 67,605,243 B shares. The stock of the
Company has been listed on the Shenzhen Stock Exchange on 30 March 1992.
The Company is in the real estate sector. Its main business includes development of real estate and sale of commercial housing,
construction and management of buildings, house rent, supervision of construction, domestic trading and materials supply and
marketing (excluding exclusive dealing and monopoly sold products and commodities under special control to purchase). Main
products or services rendered mainly include the development and sales of commercial residential housing; property management;
buildings and the building devices maintenance, garden afforest and cleaning service; property leasing; supervise and management of
the engineering; retails of the Chinese food, Western-style food and wines, and etc.
The financial statements were approved and authorized for issue by the 8th Meeting of the 10th Board of Directors of the Company on
29 March 2022.
The consolidation scope of the Company’s consolidated financial statements was determined based on the control. There were 51
subsidiaries including Shenzhen Huangcheng Real Estate Co., Ltd., Dongguan Guomao Changsheng Real Estate Development Co.,
131
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Ltd., Shenzhen International Trade Center Property Management Co., Ltd. included in the consolidation financial statements in this
report. Please refer to the Note VIII and Note IX of the financial report for details.
IV Basis for Preparation of Financial Statements
1. Preparation Basis
Based on the continuing operation, the financial statements of the Company are prepared in accordance with the actual transactions,
governing provisions of the Accounting Standards for Business Enterprises and the following major accounting policies and
estimates.
2. Continuation
There was no such case where the sustainable operation ability within 12 months since the end of the Reporting Period was highly
doubted.
V. Important Accounting Policies and Estimations
Indication of specific accounting policies and estimations:
1. Statement for Complying with the Accounting Standard for Business Enterprise
The financial statement prepared by the Company complies with the requirements of the latest accounting standards for business
enterprises as well as the application guidelines, interpretations and other relevant regulations (hereinafter referred to as the
“accounting standards for business enterprises”) issued by the Ministry of Finance. It reflects the Company’s financial conditions,
operating results, cash flow and other related information in a truthful and complete manner.
In addition, in the preparation of the financial report, reference was made to the presentation and disclosure requirements of the Rule
for Information Disclosure by Companies Offering Securities to the Public No. 15 - General Provisions on Financial Reports (2014
Revision) and the Notice on Related Matters of the Implementation of New Accounting Standards for Business Enterprises by Listed
Companies (KJBH [2018] No. 453).
2. Fiscal Period
The fiscal year of the Company is a solar calendar year, which is from 1 January to 31 December.
3. Operating Cycle
Except for the real estate industry, other businesses run by the Company have relatively short operating cycles according to the
classification standard of 12-month’s liquidity of assets and liabilities. The operating cycle of the real estate industry shall be
generally more than 12 months from real estate development to cash the sales. The specific cycle shall be determined by the
development project and classified by the assets and liabilities liquidity.
4. Standard Currency of Accounts
The Company adopts Renminbi as a standard currency of accounts.
5. Accounting Process of Business Combinations under the Same Control and not under the Same Control
1. Accounting Process of Business Combinations under the Same Control
For business combination under the same control achieved through one transaction or step by step through multiple transactions by
132
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
the Company, the assets and liabilities acquired in a business combination are measured at the carrying value of the acquiree in the
consolidated financial statements of the ultimate controlling party at the date of combination. The difference between the carrying
value of net assets acquired by the Company and the carrying value of the combination consideration paid (or the total nominal value
of shares issued) is referred to for adjusting capital reserve; if capital reserve is not sufficient to offset the difference, then retained
earnings are adjusted.
2. Accounting Process of Business Combinations not under the Same Control
The Group shall recognize the positive balance between the combination costs and the fair value of the identifiable net assets
obtained from the acquiree on purchase date as goodwill. If the combination costs are less than the fair value of the identifiable net
assets obtained from the acquire, the Company shall recheck the various identifiable assets and liabilities obtained from the acquire,
fair value with liabilities, and measurement of combination costs. If the combination costs are less than the fair value of the
identifiable net assets obtained from the acquire after recheck, the Company shall the record the balance into the profit and loss of the
current period.
Business combinations not under the same control achieved step by step through multiple transactions should be treated in the
following order:
(1) Adjusting the initial investment cost of long-term equity investment If the equity held prior to the date of purchase is accounted
under the equity method, the equity is remeasured at the fair value on the purchase date, and the difference between the fair value and
its carrying value is included in the investment income of the current period; if the equity in the acquiree held prior to the purchase
date involves other comprehensive income or changes in other owners' equity under the equity method of accounting, it is converted
into income for the current period on the purchase date, except for other comprehensive income arising from the re-measurement of
the investee's net liabilities of the defined benefit pension plan or changes in net assets of the defined benefit plan and changes in the
fair value of investments in other equity instruments held.
(2) Determining the goodwill (or the amount included in the profit or loss for the current period) When comparing the initial
investment cost of long-term equity investments adjusted in the first step with the share of the fair value of the identifiable net assets
of the subsidiary on the purchase date, if the former is more than the latter, the difference between the former and the latter is
recognized as goodwill; if the former is less than the latter, the difference is included in profit or loss for the current period.
Step-by-step disposal of equity through multiple transactions that results in loss of control over the subsidiary
(1) Principles for determining whether transactions in the process of step-by-step disposal of equity that results in the loss of control
over a subsidiary constitute a "package deal"
The multiple transactions are generally regarded as a "package deal" in accounting treatment if the clauses, conditions, and economic
impacts of various transactions fall under one or more of the following circumstances:
1) These transactions are reached concurrently or after the impact thereof on each other is taken into consideration.
2) These transactions may achieve a complete business result only as a whole.
3) The occurrence of a transaction depends on the occurrence of, at a minimum, one another transaction.
4) A transaction is considered uneconomical separately but is considered economical when other transactions are also taken into
consideration.
(2) Accounting treatment when transactions in the process of step-by-step disposal of equity that results in the loss of control over a
subsidiary constitute a "package deal"
If the transactions in the disposal of equity of a subsidiary that results in the loss of control constitute a package deal, each transaction
should be accounted for as a transaction that disposes of and loses control over a subsidiary; however, the difference between the
133
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
disposal price and the share of the net assets of the subsidiary corresponding to the disposal of the investment for each disposal prior
to the loss of control should be recognized as other comprehensive earnings in the consolidated financial statements and transferred
to profit or loss for the current period when the Company lost the control.
In the consolidated financial statements, the remaining equity should be remeasured at fair value on the date of loss of control. The
sum of the consideration obtained from the disposition of equity and the fair value of the residual equity minus the Company's
portion of net assets in the former subsidiary calculated from the date of combination on an ongoing basis at the original shareholding
ratio is included in the return on investment for the current period when the Company lost the control. Other comprehensive income
related to the equity investments in the former subsidiary should be included in the return on investment or retained earnings for the
current period when the Company lost the control.
(3) Accounting treatment when transactions in the process of step-by-step disposal of equity that results in the loss of control over a
subsidiary do not constitute a "package deal"
If the Company disposes of investments made in its subsidiary without losing control over the subsidiary, in the consolidated
financial statements, the difference between the payment for equity disposed of and the Company's corresponding portion of net
assets in the subsidiary is included in the capital reserve. If the capital reserve is insufficient for offset, the retained earnings should
be adjusted.
If the disposal of investments made in its subsidiary results in a loss of control over the subsidiary, in the consolidated financial
statements, the remaining equity should be remeasured at the fair value on the date of loss of control. The sum of the consideration
obtained from the disposition of equity and the fair value of the residual equity minus the Company's portion of net assets in the
former subsidiary calculated from the date of combination on an ongoing basis at the original shareholding ratio is included in the
return on investment for the current period when the Company lost the control. Other comprehensive income related to the equity
investments in the former subsidiary should be included in the return on investment or retained earnings for the current period when
the Company lost the control.
6. Methods for Preparing Consolidated Financial Statements
Based on the financial statements of the Company as the parent and its subsidiaries and other related materials, the consolidated
financial statements were prepared by the Group as the parent according to Accounting Standards for Enterprises No. 33
–Consolidated Financial Statements.
7. Classification of Joint arrangements and Accounting Treatment of Joint Operations
1. Identification and classification of joint arrangements
A joint arrangement is an arrangement over which two or more parties have joint control. A joint arrangement has the following
characteristics: (1) Each participant is bound by the arrangement; (2) two or more parties of the joint arrangement exercise joint
control over the arrangement. No one party can control the arrangement alone, and any party with joint control over the arrangement
can prevent the other party or combination of parties from controlling the arrangement alone.
Joint control refers to the common control over a particular arrangement according to relevant agreement, and that the decisions on
relevant activities under such arrangement are subject to unanimous consent from the parties sharing the joint control.
Joint arrangements are divided into joint operations and joint ventures. A joint operation is a joint arrangement whereby the party to
joint arrangement has rights to the assets, and obligations for the liabilities related to the arrangement. A joint venture is a joint
arrangement whereby the party to joint arrangement has rights to the net assets of the arrangement.
134
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
2. Accounting treatment of joint arrangements
A party to a joint operation shall recognize the following items related to its share of interest in the joint operation and conduct
accounting treatment for them in accordance with the relevant provisions of the Accounting Standard for Business Enterprises: (1)
Recognition of assets held separately and of assets held jointly in proportion to its share; (2) recognition of liabilities incurred
separately and of liabilities incurred jointly in proportion to its share; (3) recognition of revenue from the sale of its share of the
output of the joint operation; (4) recognition of revenue from the sale of output of the joint operation in proportion to its share; (5)
recognition of expenses incurred separately and of expenses incurred in the joint operation in proportion to its share.
The party to a joint venture should conduct accounting treatment in accordance with relevant provisions of the Accounting Standards
for Business Enterprises No. 2 - Long-term Equity Investment.
8. Recognition Standard for Cash and Cash Equivalents
In the Company’s understanding, cash and cash equivalents include cash on hand, any deposit that can be used for cover, and
short-term (usually due within 3 months since the day of purchase) and high circulating investments, which are easily convertible
into known amount of cash and whose risks in change of value are minimal.
9. Foreign Currency Businesses and Translation of Foreign Currency Financial Statements
(1) Accounting treatments for translation of foreign currency business
As for a foreign currency transaction in its initial recognition, the amount in the foreign currency shall be translated into the amount
in the Renminbi at the spot exchange rate of the transaction date. On balance sheet date, the foreign currency monetary items shall be
translated as the spot exchange rate on the balance sheet date, the balance occurred thereof shall be recorded into the profits and
losses at the current period except that the balance of exchange arising from the principal and interests of foreign currency
borrowings for the purchase and construction or production of assets eligible for capitalization. The foreign currency non-monetary
items measured at the historical cost shall still be translated at the spot exchange rate on the transaction date, of which the amount of
functional currency shall not be changed. The foreign currency non-monetary items measured at the fair value shall be translated at
the spot exchange rate on the confirming date of fair value, of which the balance of exchange shall be included into the profit and
loss of the current period or other comprehensive income.
(2) Translation of foreign currency financial statements
The asset and liability items in the balance sheets shall be translated at a spot exchange rate on the balance sheet date. Among the
owner’s equity items, except for the items as “retained earnings”, other items shall be translated at the spot exchange rate at the time
when they are incurred. The income and expense items in the income statements shall be translated at the spot exchange rate at the
time when they are incurred. The difference from translation of foreign currency financial statements thereof shall be recognized as
comprehensive income.
10. Financial Instruments
1. Recognition and derecognition of financial instruments
When the Group becomes a party to a financial instrument contract, it recognizes relevant financial assets or financial liabilities.
All regular acquisition or sales of financial assets are recognized and derecognized on a trading day basis. Regular acquisition or
sales of financial assets means delivering financial assets within the time limit of laws, regulations and usual market practices and in
line with contract terms. The trading day refers to the date when the Group promises to acquire or sell financial assets.
Financial assets (or part of financial assets, or part of a set of similar financial assets) are derecognized, i.e., written off from its
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account and balance sheet, if the following conditions are met:
(1) The right to receive cash flows from financial assets has expired;
(2) The right to receive cash flows from the financial assets is transferred, or the obligation to pay the full amount of cash flows
received to a third party in a timely manner is assumed under a "pass-through agreement"; and (a) substantially almost all the risks
and rewards of its ownership of the financial assets are transferred, or (b) control over the financial asset is relinquished, although
substantially all the risks and rewards of its ownership of the financial assets are neither transferred nor retained.
2. Classification and measurement of financial assets
At initial recognition, according to the business model of managing financial assets and the contractual cash flow characteristics of
financial assets, financial assets of the Group are classified into the following categories: Financial assets measured at the amortized
cost, financial assets measured at fair value through other comprehensive income of the current period, and financial assets measured
at fair value through profit and loss for the current period. The subsequent measurement of financial assets depended on their
categories.
The Group's classification of financial assets is based on the Group's business model for managing financial assets and the cash flow
characteristics of the financial assets.
(1) Financial assets measured at amortized cost
Financial assets that meet both of the following conditions shall be classified as financial assets measured at amortized cost: The
Group's business model of managing the financial assets aims at obtaining contractual cash flows; and, as stipulated by contract
clauses of the financial assets, the cash flows generated on a specific date are merely for the payment of principal or interest from the
unpaid principal. Such financial assets are subsequently measured at amortized cost using the effective interest method. Gain or loss
arising from derecognition or amortization using the effective interest method is included in profit and loss for the current period.
(2) Debt instrument investment measured at fair value through other comprehensive income
Financial assets that meet all the following conditions shall be classified as financial assets measured at fair value through other
comprehensive income: The Group's business model of managing the financial assets aims at obtaining contractual cash flows as well
as selling financial assets; and, as stipulated by contract clauses of the financial assets, the cash flows generated on a specific date are
merely for the payment of principal or interest from the unpaid principal. Such financial assets shall be subsequently measured at fair
value. The discount or premium is amortized using the effective interest method and recognized as interest income or expense.
Except for impairment losses or gains and exchange differences that are recognized as profit and loss for the current period, changes
in the fair value of such financial assets shall be recognized as other comprehensive income, until the financial assets are
derecognized when accumulative gains or losses shall be transferred to profit and loss for the current period. Interest income related
to such financial assets is included in profit or loss for the current period.
(3) Equity instrument investment measured at fair value through other comprehensive income
For financial assets measured at fair value through other comprehensive income that are irrevocably chosen and designated by the
Group from some non-trading equity instruments, the relevant dividend income shall be included in profit and loss for the current
period and changes in the fair value shall be recognized as other comprehensive income, until the financial assets are derecognized
when accumulative gains or losses shall be transferred to retained earnings.
(4) Financial assets measured at fair value through profit and loss for the current period
The aforementioned financial assets measured at amortized cost and financial assets other than those measured at fair value through
other comprehensive income are classified as financial assets measured at fair value through profit and loss for the current period. At
initial recognition, in order to eliminate or significantly reduce accounting mismatch, financial assets can be designated as financial
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assets measured at fair value through profit or loss for the current period. Such financial assets shall be measured at fair value, and all
changes in fair value are included in the profit and loss for the current period.
When and only when the Group changes its business model of managing financial assets, all relevant financial assets affected will be
re-classified.
For financial assets measured at fair value through profit and loss for the current period, transaction costs are directly included in
profit and loss for the current period. For other types of financial assets, related transaction costs are included in their initial
recognized amounts.
3. Classification and measurement of financial liabilities
At initial recognition, the financial liabilities of the Group are classified into the following categories: Financial liabilities measured
at the amortized cost, and financial liabilities measured at fair value through profit and loss for the current period.
Financial liabilities can be designated as financial liabilities measured at fair value through profit or loss for the current period at
initial measurement if one of the following conditions is met: (1) The designation can eliminate or significantly reduce accounting
mismatch; (2) the management and performance evaluation of a portfolio of financial liabilities or a portfolio of financial assets and
financial liabilities are based on fair value in accordance with the Group's risk management or investment strategy as set out in a
formal written document, and are reported to key management personnel on this basis within the Group; (3) The financial liabilities
contain embedded derivatives require splitting.
The Group determines the classification of financial liabilities at initial recognition. For financial liabilities measured at fair value
through profit and loss for the current period, transaction costs are directly included in profit and loss for the current period. For other
types of financial liabilities, related transaction costs are included in their initial recognized amounts.
The subsequent measurement of financial liabilities depended on their categories:
(1) Financial liabilities measured at amortized cost
Such financial liabilities shall be subsequently measured at amortized cost using the effective interest method.
(2) Financial liabilities measured at fair value through profit and loss for the current period
Financial liabilities measured at fair value through profit or loss for the current period include trading financial liabilities (including
derivatives that are financial liabilities) and financial liabilities designated as at fair value through profit or loss at initial recognition.
4. Financial instrument offset
The net amount after financial assets and financial liabilities offset each other is reported in the balance sheet if both of the following
conditions are met: The Group had a currently enforceable legal right to offset the recognized amounts; the Group planned to settle
them on a net basis or to realize the financial assets and pay off the financial liabilities simultaneously.
5. Impairment of financial instrument
(1) Impairment measurement and accounting handling of financial instrument
Based on expected credit loss, the Company conducts impairment handling and confirms loss reserve for financial assets which is
measured by amortized cost, debt instrument investment which is measured by fair value and whose change is calculated into other
comprehensive profits, accounts receivable of rental, loan commitment which is beyond financial debt classified as the one which is
measured by fair value and whose change is calculated into current profits and losses, financial debt which does not belong to the one
which is measured by fair value and whose change is calculated into current profits or losses, or financial guarantee contract of
financial debt which is formed when it does not belong to financial asset transfer and doesn’t conform to confirmation condition of
termination or keeps on being involved in transferred financial asset.
Expected credit loss refers to weighted average of credit loss of financial instrument which takes the risk of contract breach
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occurrence as the weight. Credit loss refers to the difference between all contract cash flow which is converted into cash according to
actual interest rate and receivable according to contract and all cash flow which to be charged as expected, i.e. current value of all
cash shortage. Among it, as for financial asset purchased or original which has had credit impairment, it should be converted into
cash according actual interest rate of this financial asset after credit adjustment.
As for financial asset purchased or original which has had credit impairment, the Company only confirms cumulative change of
expected credit loss within the whole duration after initial confirmation on the balance sheet date as loss reserve.
As for accounts receivable which don’t include major financing contents or the Company does not consider financing contents in
contract which is less than one year, the Company applies simplified measurement method, and measures loss reserve according to
amount of expected credit loss within the whole duration.
As for account receivable of rental and accounts receivable including major financing contents, the Company applies simplified
measurement method, and measure loss reserve according to amount of expected credit loss within the whole duration.
As for financial asset beyond above mentioned measurement methods, the Company evaluates whether its credit risk has increased
obviously since the initial confirmation on each balance sheet date. In case credit risk has increased obviously, the Company
measures the loss reserve according to amount of expected credit loss within the whole duration; in case the credit risk does not
increase obviously, the Company measures loss reserve according to the amount of expected credit loss in next 12 months.
By utilizing obtainable rational and well grounded information, including forward-looking information, comparing the risk of
contract breach on balance sheet date and risk of contract breach on initial confirmation date, the Company confirms whether the
credit risk of financial instrument has increased obviously from initial confirmation.
On balance sheet date, in case the Company judges that the financial instrument just has relatively low credit risk, then it will be
assumed that credit risk of the financial instrument has not increased obviously.
Based on single financial instrument or financial portfolio, the Company evaluates expected credit risk and measures expected credit
loss. When based on financial instrument portfolio, the Company takes common risk characteristics as the basis, and divides financial
instruments into different portfolios.
The Company measures expected credit loss again on each balance sheet date, the increase of loss reserve or amount which is
transfer back generated by it is calculated into current profits and losses as impairment profits or losses. As for financial asset which
is measured by amortized cost, loss reserve offsets the carrying value of the financial asset listed in the balance sheet; as for debt
investment which is measured by fair value and whose change is calculated into other comprehensive profits, the Company confirms
its loss reserve in other comprehensive profits and does not offset the carrying value of the financial asset.
(2) Financial instruments assessing expected credit risk by groups and measuring expected credit losses
Item Recognition basis Method of measuring expected credit losses
Other receivables-intercourse funds among Accounts nature Consulting historical experience in credit losses,
related party group within the consolidation combining actual situation and prediction for future
scope economic situation, the group’s expected credit loss
Other receivables-interest receivable group rate shall be accounted through exposure at default
Other receivables-other intercourse funds and the expected credit loss rate within the next 12
among related party group months or the entire life
Other receivables-credit risk characteristics Aging group Consulting historical experience in credit losses,
group combining actual situation and prediction for future
economic situation, the group’s expected credit loss
rate shall be accounted through exposure at default
and the expected credit loss rate within the next 12
months or the entire life
(3) Accounts receivable with expected credit losses measured by groups
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① Specific groups and method of measuring expected credit loss
Item Recognition basis Method of measuring expected credit losses
Bank’s acceptance bills receivable Bill type Consulting historical experience in credit losses,
combining actual situation and prediction for future
Trade acceptance bills receivable economic situation, the group’s expected credit loss
rate shall be accounted through exposure at default
and the expected credit loss rate within the entire life
Accounts receivable-other intercourse funds Account nature Consulting historical experience in credit losses,
among related party group combining actual situation and prediction for future
economic situation, the group’s expected credit loss
rate shall be accounted through exposure at default
and the expected credit loss rate within the entire life
Accounts receivable-credit risk characteristics Aging group Prepare the comparative list between aging of
group accounts receivable and expected credit loss rate
over the entire life by consulting historical
experience in credit losses, combining actual
situation and prediction for future economic
situation
② Accounts receivable-the comparative list between aging of common customer group and expected credit loss rate over the entire
life
Aging Expected credit loss rate of accounts receivable (%)
Within 1 year (inclusive, the same below) 3.00
1 to 2 years 10.00
2 to 3 years 30.00
3 to 4 years 50.00
4 to 5 years 80.00
Over 5 years 100.00
6. Financial asset transfer
Financial assets are derecognized if the Group has transferred almost all the risks and rewards of its ownership transferred to the
transferor; financial assets are not derecognized if the Group has retained almost all the risks and rewards of its ownership.
If the Group has neither transferred nor retained almost all the risks and rewards of its ownership of the transferred financial assets, it
will be treated respectively according to the following circumstances: If the control over the financial assets is waived, relevant
financial assets shall be derecognized, and the assets and liabilities arising from them shall be recognized; if the control over the
financial assets is not waived, relevant financial assets shall be recognized based on the extent of continuing involvement with
transferred financial assets, and related liabilities shall be recognized accordingly.
If continuing involvement is provided by way of financial guarantee for the transferred financial assets, the assets resulting from the
continuing involvement are recognized at the lower of the carrying value of the financial assets and the financial guarantee amount.
The financial guarantee amount refers to the maximum amount of the consideration received that will be required to be repaid.
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11. Notes Receivable
Refer to Note V 10 Financial Instruments of the financial statements for details.
12. Accounts Receivable
Refer to Note V 10 Financial Instruments of the financial statements for details.
13. Accounts Receivable Financing
Not applicable.
14. Other Receivables
Recognition and accounting treatment methods regarding expected credit losses of other receivables
Refer to Note V 10 Financial Instruments of the financial statements for details.
15. Inventory
(1) Inventories Classification
Inventories include development land held for sale or consumption in the process of development and operation, development
products, temporarily leased development products which intended for sale, relocation housing, stock materials, inventory equipment,
and low-value consumables, etc., as well as development costs in the process of development.
(2) Cost Flow Assumption
1) Send-out materials shall adopt the moving weighted average method.
2) During the development of the project, the development land shall be included in the development cost of the project by the floor
area apportion of the developed products.
3) Send-out developed products shall be accounted by specific identification method.
4) The temporarily leased development products which intended for sale and relocation housing shall be amortized averagely by
stages according to the expected useful life of the same kind of fixed assets of the Company.
5) If the public supporting facilities are completed earlier than the relevant development products, after the final account of the public
supporting facilities， it shall be account into the development cost of the relevant development projects according to the building
area; If the public supporting facilities are completed later than the relevant development products, the relevant development products
shall withhold the public supporting facilities fees, and adjust the relevant development product costs according to the difference
between the actual occurrence and the withhold amount after the completed public supporting facilities' final accounts.
(3) Recognition basis of Net Realizable Value of Inventory
On the balance sheet date, inventory shall be measured at the lower of cost or net realizable value, and provision shall be made for
falling price of inventories on the ground of the difference between the cost of each item of inventories and the net realizable value.
Inventories directly for sale, under normal producing process, to the amount after deducting the estimated sale expense and relevant
taxes from the estimated sell price of the inventory, the net realizable value has been recognized; inventories which need to be
processed, under normal producing process, to the amount after deducting the estimated cost of completion, estimated sale expense
and relevant taxes from the estimated sale price of produced finished goods, the net realizable value has been recognized; on the
balance sheet date, in the same item of inventories, if some have contractual price agreement while others do not, the net realizable
value shall be recognized respectively and compared with their cost, and the amount of provision withdrawal or reversal for falling
price of inventories shall be recognized respectively.
(4) Inventory System for Inventories
Inventory system: Perpetual inventory system
(5) Amortization Method of the Low-value Consumption Goods and Packing Articles
1) Low-value Consumption Goods
One-off amortization method
2) Packing Articles
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One-off amortization method
16. Contract Assets
The Company presents contract assets or contract liabilities on the balance sheet according to the relationship between the fulfillment
of its contract performance obligations and its customers’ payment. Considerations that the Company has the right to collect for
commodities transferred or services provided to customers (except for accounts receivable) are presented as contract assets.
For contract assets that do not contain significant financing components, the Company uses the simplified model of expected credit
loss, measuring the loss provision according to an amount that is equivalent to the amount of expected credit loss of the entire
duration. The increased loss provision or reversed amount thereof shall be recorded into the current profit or loss as impairment
losses or gains.
For contract assets that contain significant financing components, the Company has made the accounting policy choice and selected
the simplified model of expected credit loss, measuring the loss provision according to an amount that is equivalent to the amount of
expected credit loss of the entire duration. The increased loss provision or reversed amount thereof shall be recorded into the current
profit or loss as impairment losses or gains.
17. Contract Costs
Contract costs comprise contract performance cost and contract acquisition cost.
The cost incurred by the Company from performing a contract is recognized into an asset as contract performance cost when it meets
the following conditions:
This cost directly relates to an existing contract or a contract expected to be acquired. It consists of direct labor, direct materials,
manufacture costs (or similar costs), costs specified to be borne by the customer and other costs incurred from this contract solely.
This cost has increased the Company’s sources that are used to fulfill its contract performance obligations in the future.
This cost is expected to be recovered.
An incremental cost that is incurred by the Company for acquiring a contract and expected to be recovered is recognized into an asset
as contract acquisition cost. However, for such asset with an amortization period of less than one year, the Company recognizes them
into current profit/loss at their occurrence.
Assets related to contract costs are amortized on the same basis for recognizing the revenue from commodities or services related to
such assets.
When the carrying value of an asset related to contract costs is higher than the difference between the following two items, the
Company will withdraw impairment provision for the exceeded part and recognize it as asset impairment loss:
Residual consideration expected to be gained from transferring commodities and services related to this asset;
Costs expected to be incurred from transferring such commodities or services.
When the aforementioned asset impairment provision is reversed later, the carrying value of the asset after the reversal should not
exceed its carrying value on the reversal date under the assumption of no withdrawal of impairment provision.
18. Assets Held for Sale
The Company divides its components (or non-current assets) meeting the following conditions into available for sale assets: (1)
Assets can be sold immediately under the current conditions according to the practice of selling such assets or disposal groups in
similar transactions; (2) The sale is likely to occur, and a resolution has been made on a sale plan and a firm purchase commitment is
obtained (a firm purchase commitment refers to a legally binding purchase agreement signed between an enterprise and other parties,
which contains important terms such as transaction price, time and severe penalty for breach of contract to minimize the possibility
of major adjustment or cancellation of the agreement. The sale is expected to be completed within a year. It has been approved by
relevant authorities or regulatory authorities according to relevant regulations.
The Company adjusts the estimated net residual value of available for sale assets to the net amount of its fair value minus the selling
expenses (which shall not exceed the original book value of the assets available for sale). The difference between the original book
value and the adjusted estimated net residual value shall be included in the current profit and loss as the loss of asset impairment, and
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provisions for impairment of assets available for sale shall be made. For the amount of impairment loss of disposal group available
for sale recognized, the book value of goodwill of the disposal group shall be offset first, and then the book value of disposal group
shall be offset in proportion according to the share of the book value of non-current assets in the disposal group measured according
to this Standard.
When the net amount of fair value of non-current assets available for sale minus the selling expenses increases on the subsequent
balance sheet date, the amount previously written down shall be restored and reversed within the amount of asset impairment loss
recognized after being classified as available for sale assets, and the reversed amount shall be included in the current profits and
losses. The impairment loss of assets recognized before being classified as available for sale assets shall not be reversed. When the
net amount of fair value of disposal group available for sale minus the selling expenses increases on the subsequent balance sheet
date, the amount previously written down shall be restored and reversed within the amount of asset impairment loss recognized as
non-current assets in the disposal group measured according to this Standard after being classified into the categories available for
sale assets, and the reversed amount shall be included in the current profits and losses. The book value of goodwill that has been
offset and the impairment loss of non-current assets measured according to this Standard shall not be reversed before they are
classified as available for sale assets. The subsequent reversal amount of asset impairment loss recognized as disposal group
available for sale shall be increased in proportion to the share of the book value of non-current assets in the disposal group, except
goodwill, which are measured according to this Standard. In case that an enterprise loses its control over a subsidiary due to sale of
its investment in the subsidiary, the investment in the subsidiary to be sold shall be divided into the available for sale category in
individual financial statement of the parent company when the proposed investment in the subsidiary meets the conditions for
classification of available for sale category, and all assets and liabilities of the subsidiary shall be classified into available for sale
category in the consolidated financial statements, no matter whether the enterprise retains part of equity investment after the sale.
19. Investments in Debt Obligations
Not applicable.
20. Investments in other Debt Obligations
Not applicable.
21. Long-term Receivable
Refer to Note V-10. Financial Instrument for details.
22. Long-term Equity Investments
(1) Judgment of Joint Control and Significant Influences
The term "joint control" refers to the joint control over an arrangement in accordance with the related agreements, which does not
exist unless the participants sharing the control power agree with each other about the related arranged activity. The term "significant
influences" refers to the power to participate in making decisions on the financial and operating policies of an enterprise, but not to
control or do joint control together with other parties over the formulation of these policies.
(2) Recognition of Investment Cost
1) If the business combination is under the common control and the acquirer obtains long-term equity investment in the consideration
of cash, non-monetary asset exchange, bearing acquiree’s liabilities, or the issuance of equity securities, the initial cost is the carrying
amount of the proportion of the acquiree’s owner’s equity at the acquisition date. The difference between the initial cost of the
long-term equity investment and the carrying amount of the paid combination or the total amount of the issued shares should be
adjusted to capital surplus. If the capital surplus is not sufficient for adjustment, retained earnings are adjusted respectively.
When a long-term equity investment is formed from the business combination under common control through the Company’s
multiple transactions step by step, the treatment shall be carried out based on whether the transactions constitute the “package deal”.
If they do, the accounting treatment shall be carried out on the basis of assuming all transactions as one transaction with the
acquisition of control. If they do not, the initial investment cost shall be the portion of the carrying value of acquiree’s net assets
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entitled in the consolidated financial statements of the final controller after the consolidation. The difference between the initial
investment cost of the long-term equity investment on the combination date and the carrying value of the investment before the
combination plus the carrying value of the newly-paid consideration for the acquisition of the shares on the consolidation date shall
be adjusted to capital reserve; if the capital reserve is insufficient for the adjustment, retained earnings should be adjusted
accordingly.
2) For those formed from the business combination under different control, the initial investment cost is the fair value of the
combination consideration paid on the acquisition date.
When a long-term equity investment is formed from the business combination under different control through the Company’s
multiple transactions step by step, the accounting treatment shall be carried out based on whether the financial statements are
individual or consolidated:
① In individual financial statements, the initial investment cost accounted in cost method is the sum of the carrying value of the
equity investment originally held and the cost of new investment.
② In consolidate financial statements, judge whether the transactions constitute the “package deal”. If they do, the accounting
treatment shall be carried out on the basis of assuming all transactions as one transaction with the acquisition of control. If they do
not, for the acquiree’s equity held before the acquisition date, re-measurement shall be carried out according to the fair value of the
equity on the acquisition date and the difference between the fair value and the carrying value shall be recorded into current
investment income; if the acquiree’s equity held before the acquisition date involves other comprehensive income accounted in
equity method, other comprehensive income related to it shall be transferred into the income for the period in which the acquisition
date falls, with the exception of the other comprehensive incomes occurred because of the changes of net liabilities or net assets of
the defined benefit pension plans be re-measured for setting by the investees.
③ For those formed other than from business combination: If they are acquired in cash payment, the initial investment cost is the
purchase price actually paid; if they are acquired in the issue of equity securities, the initial investment cost is the fair value of the
issued equity securities; if they are acquired in debt restructuring, the initial investment cost shall be recognized according to the
Accounting Standards for Enterprises No. 12 - Debt Restructuring; if they are acquired in the exchange of non-monetary assets, the
initial investment shall be recognized according to the Accounting Standards for Enterprises No. 7 - Exchange of Non-Monetary
Assets.
(3) Method of subsequent measurement and recognition of profits and losses
Long-term equity investment with control over investees shall be accounted in cost method; long-term equity investment on
associated enterprises and joint ventures shall be accounted in equity method.
(4) Method of treating the disposal of the investment in a subsidiary stem by step through multiple transactions until the loss
of the controlling right
1) Individual financial statements
For the disposed equity, the difference between its fair value and the actually obtained price shall be recorded into current profits or
losses. For the residual equity, the part that still has significant effects on investees or with common control jointly with other parties
shall be accounted in equity method; the part that has no more control, common control or significant effects on investees shall be
accounted in accordance with the relevant regulation of the Accounting Standards for Enterprises No. 22 - Recognition and
Measurement of Financial Instruments.
2) Consolidated financial statements
① For the disposal of the investment in subsidiaries step by step until the loss of the controlling right through multiple transactions,
which do not constitute the “package deal”
Before the loss of the controlling right, for the balance between the disposal remuneration and the shares of net assets in the
subsidiaries that have been calculated since the acquisition date or combination date corresponding to the disposal of long-term
equity investment, capital reserve (capital premium) shall be adjusted, and if the capital premium is not sufficient for the write-down,
the retained earnings shall be written down.
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At the loss of the controlling right over the original subsidiaries, the residual equity shall be re-measured at its fair value on the date
of losing the controlling right. The difference between the consideration obtained in the equity disposal, plus the fair value of the
remaining equities, less the Company’s share of net assets enjoyed of the former subsidiary that has been calculated since the
acquisition date or combination date according to the former shareholding ratio, shall be recorded into the investment gains for the
period when the control ceases; meanwhile, goodwill shall be written down. Other comprehensive income related to former
subsidiary's equity investment shall be transferred into current investment income when the control ceases.
② For the disposal of the investment in subsidiaries step by step until the loss of the controlling right through multiple transactions,
which constitute the “package deal”
The accounting treatment shall be carried out on the basis of considering each transaction as a transaction of disposing the subsidiary
and losing control. However, before losing control, the difference between each disposal price before losing the control, and the
corresponding net assets share enjoyed of subsidiary when disposing long-term equity investment, shall be recognized as other
comprehensive income in the consolidated financial statements and when the control ceases, transferred into current profits or losses
of the period of losing control.
(5) Impairment test method and impairment provision method
When there is objective evidence indicating impairment of the investment in subsidiaries, joint ventures and cooperative enterprises
on the balance sheet date, corresponding provision for impairment shall be made according to the difference between the book value
and recoverable amount.
23. Investment Property
Measurement mode of investment real estates
Measurement of cost method
Depreciation or amortization method
1. The term "investment real estate" includes the right to use any land which has already been rented, the right to use any land which
is held and prepared for transfer after appreciation, and the right to use any building which has already been rented.
2. The Company initially measures the investment property according to the costs, and adopts the cost method in the subsequent
measurement of investment property, and adopts the same methods with fixed assets and intangible assets to withdraw depreciation
or amortization. When there is any indication of impairment of investment property on the balance sheet date, corresponding
provision for impairment shall be made according to the difference between the book value and recoverable amount.
24. Fixed Assets
(1) Recognized Standard of Fixed Assets
The term "fixed assets" refers to the tangible assets that simultaneously possess the features as follows: they are held for the sake of
producing commodities, rendering labor service, renting or business management; and their useful life is in excess of one fiscal year.
No fixed asset may be recognized unless it simultaneously meets the conditions as follows: (1) The economic benefits are likely to
flow into the enterprise; (2) The cost of the fixed asset can be measured reliably.
(2) Depreciation Method
Expected net salvage
Category Depreciation method Useful life (year) Annual deprecation
value
Straight-line
Houses and buildings 20-25 5-10 3.6-4.75
depreciation
Straight-line
Transportation 5 5 19
depreciation
Other equipment Straight-line 5 5 19
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depreciation
Straight-line
Machinery equipment 5 5 19
depreciation
Decoration of fixed Straight-line
5 0 20
assets depreciation
(3) Recognition Basis, Pricing and Depreciation Method of Fixed Assets by Finance Lease
Not applicable.
25. Construction in Progress
1. No construction in progress may be recognized unless it simultaneously meets the conditions as follows: (1) The economic
benefits are likely to flow into the enterprise; (2) The cost of the fixed asset can be measured reliably. Construction in progress shall
be measured according to the occurred actual costs before the assets available for the intended use.
2. When the construction in progress is available for the intended use, it shall be transferred to fixed assets according to the actual
cost of the project. For construction in progress available for the intended use but not dealing with final accounts of completed
project, it shall be transferred to fixed assets according to the estimated value first, and then adjust original temporarily estimated
value based on the actual costs after the final accounts of completed project, but not adjust the depreciation that was already
calculated.
26. Borrowing Costs
1. Recognition Principle of Capitalization of Borrowing Costs
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 shall be capitalized and recorded into the costs of relevant assets. Other borrowing costs shall be
recognized as expenses when it occurred, and shall be recorded into the current profits and losses.
2. Capitalization Period of Borrowings Costs
(1) The borrowing costs shall not be capitalized unless they simultaneously meet the following requirements: 1) The asset
disbursements have already incurred; 2) The borrowing costs have already incurred; 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) 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 shall be suspended. The borrowing costs incurred during such
period shall be recognized as expenses, and shall be recorded into the profits and losses of the current period, till the acquisition and
construction or production of the asset restarts.
(3) When the acquisition and construction or production of a qualified asset eligible for capitalization are available for its intended
use or sale, the capitalization of borrowing costs shall be stopped.
3. Capitalized rate and amount of borrowing costs
To the extent that funds are borrowed specifically for the purpose of acquiring or constructing a qualifying asset, the amount of
borrowing costs eligible for capitalization on that asset is determined as the actual interest costs (including amortization of discount
and premium confirmed according to effective interest method) incurred on that borrowing during the period less any investment
income on the temporary investment of the borrowing. To the extent that funds are borrowed generally and used for the purpose of
acquiring or constructing a qualifying asset, the amount of borrowing costs eligible for capitalization shall be determined by applying
a capitalization rate to the weighted average of excess of accumulated expenditures on qualifying asset over that on specific purpose
borrowing.
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27. Biological Assets
Not applicable.
28. Oil and Gas Assets
Not applicable.
29. Right-of-use Assets
On the start date of the lease term, the Group deems the right-of-use assets and lease obligations, except for the simplified short-term
lease and low-value leases.
The Group initially measures right-of-use assets at cost. The cost includes:
1. The initial measurement amount of the lease obligation.
2. If a lease incentive exists for lease payments made on or before the commencement date of the lease term, the amount related to
the lease incentive already taken is deducted.
3. Initial direct costs incurred.
4. Costs expected to be incurred by the Group for dismantling and removing the leased asset(s), restoring the premises where the
leased asset(s) is/are located, or restoring the leased asset(s) to the status agreed in the leasing clauses. If the aforementioned costs are
incurred for inventory production, relevant provisions of Accounting Standard for Business Enterprises No.1 - Inventory is applicable.
The Group recognizes and measures the costs described in Item 4 above in accordance with relevant provisions of the Accounting
Standards for Business Enterprises No. 13 - Contingencies. The initial direct costs incurred refer to the incremental costs incurred to
achieve the lease. Incremental costs are costs that would not have been incurred had the business not acquired the lease.
The Group depreciates the right-of-use assets in accordance with relevant depreciation provisions of the Accounting Standards for
Business Enterprises No. 4 - Fixed Assets. If it is reasonably certain that the ownership of the leasehold property will be obtained at
the end of the lease term, the Group will depreciate the leasehold property over its remaining service life. If it is not reasonably
certain that the ownership of the leasehold property will be obtained at the end of the lease term, the Group will depreciate the leased
asset(s) over the lease term or the remaining service life, whichever is shorter.
The Group determines the impairment of the right-of-use assets and conducts accounting treatment of the impairment losses already
identified in accordance with relevant provisions of the Accounting Standards for Business Enterprises No. 8 - Asset Impairment.
30. Intangible Assets
(1) Pricing Method, Useful Life and Impairment Test
1. Intangible assets include right to use land sites, use right of software etc. and conduct the initial measurement according to the
costs.
2. With regard to intangible assets with limited service life, it shall be amortized systematically and reasonably within their service
life according to the expected implementation of economic interests related to the intangible assets. If it can’t recognize the expected
implementation reliably, it shall be amortized by straight-line method. The specific useful lives are as follows:
Items Useful life for amortization (years)
Use right of lands Statutory life of land use right
Use right of software 5
The intangible assets with uncertain service life shall not be amortized, and the Company rechecks the service life of the intangible
assets in every accounting period. For intangible assets with uncertain service, the recognition basis is without certain service life and
expected benefit life.
3. For intangible assets with definite service life, when there is any indication of impairment on the balance sheet date, corresponding
provision for impairment shall be made according to the difference between the book value and recoverable amount; for intangible
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assets with uncertain service life and those not ready for service, impairment test shall be conducted every year no matter whether
there is any indication of impairment.
(2) Accounting Policies of Internal R&D Expenses
Not applicable.
31. Impairment of Long-term Assets
For long-term assets, such as long-term equity investment, investment property measured by cost model, fixed assets, construction in
progress, and intangible assets with limited service life, the Company shall estimate the recoverable amount if there are signs of
impairment on balance sheet date. For intangible assets with uncertain goodwill or service life formed by enterprise combination,
whether or not there is sign of impairment, impairment test shall be conducted every year. Goodwill combination and its related
assets group or combination of assets group shall be conducted the impairment test.
If the recoverable amount of the above-mentioned long-term assets is lower than its carrying value, it shall make the preparation for
assets impairment based on its balance and be recorded into current profits and losses.
32. Long-term Prepaid Expenses
Long-term deferred expenses refer to general expenses with the amortized period over one year (one year excluded) that have
occurred. Long-term prepaid expense shall be recorded into the account according to the actual accrual. Long-term prepaid expense
shall be amortized averagely within benefit period or specified period. In case of no benefit in the future accounting period, the
amortized value of such project that fails to be amortized shall be transferred into the profits and losses of the current period.
33. Contract Liabilities
The Company presents contract assets or contract liabilities on the balance sheet according to the relationship between the fulfillment
of its contract performance obligations and its customers’ payment. Obligations to be fulfilled by the Company of transferring
commodities or providing services to customers, as the Company has received or should receive customers’ considerations, are
presented as contract liabilities.
34. Payroll
(1) Accounting Treatment of Short-term Compensation
During the accounting period when the employees providing the service for the Company, the actual short-term compensation shall
be recognized as liabilities, and be recorded into the current profits and losses or related assets costs.
(2) Accounting Treatment of the Welfare after Demission
The Company's welfare after demission plans is divided into defined contribution plans and defined benefit plans (1) During the
accounting period when the employee providing service for the Company, the amount paid in line with the setting drawing plan will
be recognized as liabilities and recorded into current profits or losses or cost of relevant assets.
(2) The accounting treatment of defined benefit plans usually consists of the following steps:
1) According to the expected cumulative welfare unit method, adopt unbiased and mutually consistent actuarial assumptions to
evaluate related demographic variables and financial variables, measure the obligations generated from defined benefit plans and
recognize the period in respect of related obligations. Meanwhile, discount the obligations generated from defined benefit plans to
recognize their present value and the current service costs;
2) If there are any assets in a defined benefit plan, the deficit or surplus formed from the present value of the defined benefit plan
obligations less the fair value of the defined benefit plan assets shall be recognized as net liabilities or net assets of a defined benefit
plan. If there is any surplus in a defined benefit plan, the net assets of the plan shall be measured at the lower of the surplus or the
upper asset limit;
3) At the end of the period, the staff remuneration costs generated from a defined benefit plan shall be recognized as services costs,
net interests of the net liabilities or net assets of the plan and changes from the re-measurement of the net liabilities or net assets of
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the plan. Service costs and net interests of the net liabilities or net assets of the plan shall be recorded into the current profits or losses
or related asset costs, while changes from the re-measurement of the net liabilities or net assets of the plan shall be recorded into
other comprehensive income and shall not be transferred back to profits or losses in subsequent accounting periods. But the amounts
recognized in other comprehensive income may be transferred within the equity scope.
(3) Accounting Treatment of Demission Welfare
When the Company is unable to unilaterally withdraw the plan on the cancellation of labor relationship or the layoff proposal, or
when recognizing the costs or expenses (the earlier one between the two) related to the reorganization of paying the demission
welfare, should recognize the payroll liabilities from the demission welfare and include in the current gains and losses.
(4) Accounting Treatment of Other Welfare of the Long-term Employees
The Company provides the other long-term employee benefits for the employees, and for those met with the defined contribution
plans, accounting treatment should be conducted according to the related regulations of the defined contribution plans; the for the
others long-term employee benefits except for the former, accounting treatment should be conducted according to the related
regulations of the defined benefit plans. In order to simplify the related accounting treatment, the payrolls shall be recognized as
service costs, the net amount of interest of net liabilities and net assets of other welfare of the long-term employees. The total net
amounts made up from the changes of measuring the net liabilities and net assets of other welfare of the long-term employees again
shall be recorded into the current profits and losses or related assets costs.
35. Lease Liabilities
On the start date of the lease term, the Group deems the right-of-use assets and lease obligations, except for the simplified short-term
lease and low-value leases.
The Group initially measures the lease obligation at the present value of the lease payments outstanding at the commencement date of
the lease term.
The term "lease payments" refers to the payments made by the Group to the lessor in terms of the use of the leased asset(s) within the
lease term, including:
(1) fixed lease payments and substantial fixed lease payments (if a lease incentive exists, deduct the amount related to the lease
incentive);
(2) the variable lease payments that depend on indexation or ratio, which are determined according to the indexation or ratio on the
commencement date of the lease term in the initial measurement;
(3) the exercise price of the purchase option, when applicable, if the Group is reasonably certain that the option will be exercised;
(4) payments required to be made for exercising the option to terminate the lease if the lease term reflects that the Group will exercise
such an option;
(5) estimated amount payable based on the residual value of the guarantee provided by the Group.
When calculating the present value of lease payments, the Group uses the interest rate implicit in lease as the rate of discount. If the
interest rate implicit in lease cannot be determined, the Group’s incremental lending rate is used as the rate of discount.
36. Provisions
1. The obligation such as external guaranty, litigation or arbitration, product quality assurance, loss contract, pertinent to a
contingencies shall be recognized as the provisions when the following conditions are satisfied simultaneously: ① That obligation
is a current obligation of the enterprise; ② It is likely to cause any economic benefit to flow out of the enterprise as a result of
performance of the obligation; and ③ The amount of the obligation can be measured in a reliable way.
2. The Company shall conduct the initial measurement to provisions according to the best estimate number needed for performing the
related current obligation and recheck the carrying value of accrued liabilities on balance sheet date.
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37. Share-based Payment
Not applicable.
38. Other Financial Instruments such as Preference Shares and Perpetual Bonds
Not applicable.
39. Revenue
The Accounting Policy Adopted for Recognition and Measurement of Revenue
1. Recognition of revenue
The Company gains revenue mainly from property sales, property management, sales of software and property leasing (refer to 32.
Leasing for more detail).
The Company recognizes revenue when it has fulfilled the obligation of contract performance, namely, when it has acquired the
control of the related commodity. The acquisition of control over a commodity refers to the capacity to control the use of the
commodity and to gain almost all economic interests thereof.
2. The Company judges whether a contract performance obligation is “a contract performance obligation fulfilled in a time
period” or “a contract performance obligation fulfilled at a time point” according to the terms in revenue standards, and
recognizes revenue according to the following principles.
(1) When the Company meets one of the following conditions, the obligation should be classified as a contract performance
obligation fulfilled in a specific time period:
1) The customer gains and consumes the economic interests brought by the Company’s contract performance when the Company
performs the contract.
2) The customer is able to control the assets in progress during the Company’s contract performance.
3) The assets produced during the Company’s contract performance have irreplaceable use, and the Company has the right to collect
payment in respect of its completed contract performance accumulated as of now throughout the entire contract period.
For a contract performance obligation fulfilled in a time period, the Company recognizes revenue according to the progress towards
contract completion in that period, but excluding the case when such progress cannot be reasonably determined. The Company uses
the output or input method to determine the right progress towards contract completion by considering the nature of the commodity.
4) For one that is classified as a contract performance obligation fulfilled at a time point instead of in a time period, the Company
recognizes revenue when the customer acquires the control over the related commodity.
In judging whether the customer has acquired the control over a commodity, the Company considers the following signs:
1) The Company is entitled to the current right of payment collection in respect of the commodity. In other words, the customer has
the current obligation to pay for the commodity.
2) The Company has transferred the legal ownership of the commodity to the customer. In other words, the customer has owned the
legal ownership of the commodity.
3) The Company has transferred the physical commodity to the customer. In other words, the customer has taken physical possession
of the commodity.
4) The Company has transferred the major risks and remunerations in respect of the ownership of the commodity. In other words, the
customer has acquired the major risks and remunerations in respect of the ownership of the commodity.
5) The customer has accepted the commodity.
6) Other signs indicating that the customer has acquired control over the commodity.
Specific policies of the Company for recognizing revenue:
1) Real Estate Sales Contracts
The realization of sales revenue shall be recognized under the following conditions: the developed products have been completed and
accepted, the sales contract has been signed and the obligations stipulated in the contract have been fulfilled, the main risks and
rewards of ownership of the developed products have been transferred to the buyer at the same time, the Company shall no longer
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retain the continuous management rights normally associated with ownership and effectively control the sold developed products, the
revenue amount can be measured reliably, the related economic benefits are likely to flow in, and the related costs that have occurred
or will occur can be measured reliably.
For the sale of self-occupied housing, the realization of sales income shall be recognized under the following conditions: the main
risks and rewards of ownership of self-occupied houses are transferred to the buyer, the Company will no longer retain the
continuous management rights normally associated with ownership and effectively control the sold development products, the
amount of income can be measured reliably, relevant economic benefits are likely to flow in, the relevant costs that have occurred or
will occur can be measured reliably.
Only recognizing the sales income realization under the following conditions: acquired the real estate completed and accepted as
qualified (the completion and acceptance reports), signed an irreversible sales contract, obtained the buyer's payment certificate (for
those who chose bank mortgage, the first installment and the full amount of bank mortgage must be required; for those who did not
choose the bank mortgage to make their payment, the full house payment must be required) issued the notice of repossession (if the
owner fails to go through the formalities in time within the specified time limit the building shall be deemed as repossessed).
2) Providing Labor Services
If the provision of labor services can be reliably estimated (all the following conditions are met: ① The amount of income can be
measured reliably; ②The relevant economic benefits are likely to inflow to the Company; ③ The progress of the transaction can be
reliably determined; ④ The cost incurred and to be incurred in the transaction can be measured reliably), it shall recognize the
revenue from providing services employing the percentage-of-completion method, and confirm the completion of labor service
according to the costs incurred as a percentage of the total estimated costs. If the Company can’t, on the date of the balance sheet,
reliably estimate the outcome of a transaction concerning the labor services it provides, it shall be handled under the following
conditions: If the cost of labor services incurred is expected to be compensated, the revenue from the providing of labor services shall
be recognized in accordance with the amount of the cost of labor services incurred, and the cost of labor services shall be carried
forward at the same amount; If the cost of labor services incurred is not expected to compensate, the cost incurred should be included
in the current profits and losses, and no revenue from the providing of labor services may be recognized.
Property management revenue shall be recognized when property management services have been provided, economic benefits
related to property management services can flow into the enterprise, and costs related to property management can be reliably
measured.
3) Transferring the Right to Use Assets
The revenue of transferring the right to use assets may not be recognized unless the following conditions are both met: the relevant
economic benefits are likely to inflow to the Company; and the revenue can be reliably measured. The interest income shall be
recognized according to the time and actual interest rate in which other people use the Company’s monetary funds. Royalty revenue
shall be recognized according to the chargeable time and method stipulated in related contracts and agreements.
According to the lease date and lease amount agreed in the lease contract and agreement, the realization of rental property income
shall be recognized when relevant economic benefits are likely to flow in.
4) Software sales revenue
① Revenue recognition and measurement methods for sales of custom software and independent software products
Custom software refers to the special software designed and developed after the full on-site investigation of the user's business
according to the software development contract signed with the customer based on the actual needs of the user, and the resulting
developed software is not universal. Revenue is recognized over time based on the progress of completed performance obligations
over the contract period only if the goods produced by the Company in the course of performance have an irreplaceable use and the
Company is entitled to receive payment for the cumulative portion of performance completed to date throughout the contract period,
with the progress of completed performance obligations determined by the proportion of the contract costs actually incurred to
complete the performance obligations to the total estimated contract costs. Otherwise, the revenue is recognized at a certain point in
time.
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For sales contracts of independent software products signed with the customer, the customer directly purchases the standard version
of the software, i.e., the real estate and facilities management platform, and the corresponding modules are deployed by
implementation personnel according to the customer's requirements. In this case, the performance obligations are to be performed at
a certain point in time. The revenue is recognized after the Company delivers the product to the customer and the customer accepts
the product.
② Revenue recognition and measurement methods for systems integration contracts
System integration includes the sale and installation of purchased merchandise and software products. The revenue is recognized
when the Company has transferred the primary risks and rewards of the ownership of the purchased merchandise to the purchaser;
the Company neither retained the continued management rights usually associated with the ownership, nor effectively controlled the
sold goods; the installation and commissioning of the system have been completed and the system has been put into trial operation,
or the initial inspection report of the purchaser is obtained; the economic benefits relevant to the transaction are likely to flow into the
Company, the relevant costs can be reliably measured.
③ Revenue recognition and measurement methods for technical service revenue
Technical service revenue mainly refers to the business of providing consulting, implementation and after-sales services of products
to customers as required by contracts. If a service period is agreed upon in a contract, it is considered as a performance obligation to
be performed within a certain period of time, and revenue is recognized for services settled with the customer in accordance with the
contracted service period during the service provision period.
5) Other Business Income
According to the stipulations of relevant contracts and agreements, when the economic benefits related to the transaction can flow
into the enterprise and the costs related to the income can be reliably measured, the realization of other business income shall be
confirmed.
3. Measurement of Revenue
The Company should measure revenue according to the transaction prices apportioned to each of the individual contract performance
obligations. In determining a transaction price, the Company considers the impact of a number of factors, including variable
consideration, significant financing components in contracts, non-cash consideration, and consideration payable to customers.
(1) Variable consideration
The Company determines the best estimate of variable consideration according to the expected value or the amount most likely to
occur. But a transaction price containing variable consideration should not exceed the amount from the accumulated recognized
revenue that will probably not have any significant reversal when related uncertainties are eliminated. When assessing whether the
significant reversal of accumulated recognized revenue is almost impossible or not, a company should concurrently consider the
possibility and weight of the revenue reversal.
(2) Significant financing component
When a contract contains any financing component, the Company should determine the transaction price according to the amount
payable that is assumed to be paid in cash by the customer when it acquires control over the commodity. The difference between the
transaction price and the contract consideration should be amortized in the effective interest method during the contract period.
(3) Non-cash consideration
When a customer pays non-cash consideration, the Company should determine the transaction price according to the fair value of the
non-cash consideration. When such fair value cannot be reasonably estimated, the Company will indirectly determine the transaction
price by reference to the individual price committed by the Company for transferring the commodity to the customer.
(4) Consideration payable to a customer
For consideration payable to a customer, the Company should deduct the transaction price from the consideration payable, and
deduct the revenue for the current period at either the recognition of related revenue or the payment (or committed payment) of the
consideration to the customer, whichever is earlier, but excluding the case in which the consideration payable to the customer is for
the purpose of acquiring from the customer other commodities that can be obviously distinguished.
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If the Company’s consideration payable to a customer is for the purpose of acquiring from the customer other commodities that can
be obviously distinguished, the Company should confirm the commodity purchased in the same way as in its other purchases. When
the Company’s consideration payable to a customer exceeds the fair value of the commodity that can be obviously distinguished, the
exceeded amount should be used to deduct the transaction price. If the fair value of the commodity acquired from the customer that
can be obviously distinguished cannot be reasonably estimated, the Company should deduct the transaction price from the
consideration payable to the customer.
Differences in accounting policies for the recognition of revenue caused by different business models for the same type of business
Not applicable.
40. Government Grants
1. If the government subsidies meet with the following conditions at the same, it should be recognized: (1) The entity will
comply with the condition attaching to them; (2) The grants will be received from government. If a government subsidy is a
monetary asset, it shall be measured according to the amount received or receivable. If a government subsidy is a non-monetary asset,
it shall be measured at its fair value, and shall be measured at a nominal amount when the fair value cannot be obtained reliably.
2. Judgment basis and accounting methods of government subsidies related to assets
The government subsidies that are acquired for construction or form long-term assets in other ways according to government
documents shall be defined as asset-related government subsidies. For those not specified in government documents, the judgment
shall be made based on the compulsory fundamental conditions for acquiring the subsidies. If the subsidies are acquired with
construction or the formation of long-term assets in other ways as fundamental conditions, they shall be recognized as asset-related
government subsidies. For asset-related government subsidies, the carrying value of related assets shall be written down or
recognized as deferred income. If asset-related government subsidies are recognized as deferred income, it shall be recorded into
profits or losses by period in a reasonable and systemic manner within the life of related assets. Government subsidies measured at
the nominal amount shall be directly recorded into current profits or losses. If related assets are sold, transferred, disposed of or
destroyed before the end of their life, the undistributed balance of related deferred income shall be transferred into the profits or
losses for the period of the asset disposal.
3. Judgment basis and accounting treatment of profits-related government subsidies
Government subsidies other than asset-related government subsidies shall be defined as profits-related government subsidies. For
government subsidies consisting of both asset-related parts and profits-related parts, which are difficult to judge whether they are
related to assets or profits, the entirety shall be classified as profits-related government subsidies. Profits-related government
subsidies that are used to compensate the related future expenses or losses shall be recognized as deferred income and shall be
included into the current profit/losses during the period when the relevant expenses or losses are recognized; those subsidies used to
compensate the related expenses or losses incurred shall be directly included into the current profits/losses.
4. Government subsidies related to the Company’s routine operating activities shall be included into other income or write down
related costs according to the economic business nature. Government subsidies not related to the Company’s routine activities shall
be included into non-operating income and expenditure.
41. Deferred Income Tax Assets/Deferred Income Tax Liabilities
1. In accordance with the balance (the item not recognized as assets and liabilities can confirm their tax bases according to the tax law,
the balance between the tax bases and its carrying amount) between the carrying amount of assets or liabilities and their tax bases,
deferred tax assets and deferred tax liabilities should be recognized at the tax rates that are expected to apply to the period when the
asset is realized or the liability is settled.
2. A deferred tax asset shall be recognized within the limit of taxable income that is likely to be obtained to offset the deductible
temporary differences. At the balance sheet date, where there is strong evidence showing that sufficient taxable profit will be
available against which the deductible temporary difference can be utilized, the deferred tax asset unrecognized in prior period shall
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
be recognized.
3. The Company assesses the carrying amount of deferred tax asset at the balance sheet date. If it’s probable that sufficient taxable
profit will not be available against which the deductible temporary difference can be utilized, the Company shall write down the
carrying amount of deferred tax asset, or reverse the amount written down later when it’s probable that sufficient taxable profit will
be available.
4. The current income tax and deferred income tax of the Company are recorded into the current gains and losses as income tax
expenses or revenue, except in the following circumstances: (1) Business combination; (2) The transaction or event directly included
in owner’ equity.
42. Lease
(1) Accounting Treatment of Operating Lease
1. Lessee
The Group shall, when as the lessee, on the commencement date of the lease term, recognize the right-of-use assets and lease
obligations for the lease, unless it is a simplified short-term lease or low-value asset lease.
After the commencement date of the lease term, the Group uses the cost model for subsequent measurement of right-of-use assets.
The Group depreciates the right-of-use assets in accordance with relevant depreciation provisions of the Accounting Standards for
Business Enterprises No. 4 - Fixed Assets. If the lessee can reasonably ascertain that the ownership of the leasehold property will be
obtained at the end of the lease term, it shall depreciate the leasehold property over its remaining service life. If it is not reasonably
certain that the ownership of the leasehold property will be obtained at the end of the lease term, it shall depreciate the leased asset(s)
over the lease term or the remaining service life, whichever is shorter. The Group will determine the impairment of the right-of-use
assets and conduct accounting treatment of the impairment losses already identified in accordance with relevant provisions of the
Accounting Standards for Business Enterprises No. 8 - Asset Impairment.
The Group calculates the interest expenses of the lease obligations during each period of the lease term at a fixed periodic interest
rate, and includes them in profit or loss for the current period. Where the Accounting Standards for Business Enterprises No. 17 -
Borrowing Costs and other standards provide that such interest expenses shall be included in the cost of related assets, such
provisions shall be observed.
The Group does not recognize the right-of-use assets and lease liabilities for short-term leases and low-value asset leases. In each
period within the lease term, the relevant lease payments for short-term leases and low-value asset leases are included in cost of the
related assets or profit or loss for the current period on a straight-line basis.
2. Lessor
Operating Lease
In the case of the Group is the lessor, it recognizes the receipts of the operating lease incurred during each period of the lease term as
rentals by the straight-line method. The Group capitalizes the initial direct costs related to the operating lease upon incurrence thereof
and, within the lease term, apportions and includes such costs in the current profit or loss on the basis same as the recognition of
rentals.
For the fixed assets in the assets under operating lease, the Group shall adopt the depreciation policy of similar assets to calculate and
distill depreciation. For other assets under operating lease, the Group shall amortize them in a systematic and reasonable manner in
accordance with the accounting standards for enterprises applicable to the assets. The Group will determine the impairment of assets
under operating lease and conduct accounting treatment in accordance with relevant provisions of the Accounting Standards for
Business Enterprises No. 8 - Asset Impairment.
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(2) Accounting Treatments of Financial Lease
Financial lease
The Group shall, when as the lessor, on the commencement date of the lease term, recognize the finance lease receivables for the
finance lease and derecognize the leased asset(s) of the finance lease. The Group shall also calculate and confirm the interest income
at a fixed periodic interest rate in each period in the lease term.
43. Other Important Accounting Policies and Accounting Estimations
1. Confirmation standard and accounting handling method for operation termination
Components which meet one of the following conditions, have been disposed or divided as held for sale category and can be
distinguished separately are confirmed as operation termination.
1) The component represents one important independent main business or one single main operation area.
2) The component is one part of a related plan which plans to dispose one independent main business or one single main operation
area.
3) The component is a subsidiary which is obtained for resale specially.
44. Changes in Main Accounting Policies and Estimates
(1) Change of Accounting Policies
√ Applicable □ Not applicable
Contents of changes in accounting
Approval procedures Remark
policies and reasons thereof
First execution in accordance with the 22nd Meeting of the 9th Board of
standards Directors
(I) Change of Accounting Policies
1. The Company has adopted the provisions of Accounting Standard for Business Enterprises No. 21 –Lease (CK [2018] No. 35)
since 1 January 2021. According to cumulative effects, the Company adjusted retained earnings at the beginning of the year and other
relevant items in the financial statements, without adjustment of any information of the comparable period. The impact of accounting
policy changes includes:
Contents of changes in accounting policies and reasons
Items and amounts of financial statements affected
thereof
In accordance with the new lease standards, on theAs listed in the consolidated balance sheet as at January 1, 2021,
commencement date of the lease term, the "right-of-use assets"the amount of "right-of-use assets" was RMB39,209,648.76, the
and "lease obligations" shall be recognized for the lease, unlessamount of "lease liabilities" was RMB29,410,564.00 and the
it is a simplified short-term lease or low-value asset lease. If theamount of "non-current liabilities due within one year" was
payment period is less than a year, it is listed in "non-currentRMB9,799,084.76. On 31 December 2021, the amount of
liabilities due within one year". “right-of-use assets” was RMB71,472,680.73 and the amount of
“lease liabilities” was RMB83,081,182.89 and the amount of
"non-current liabilities due within one year" was
RMB14,940,651.36.
As listed in the consolidated balance sheet of the parent company
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as at 1 January 2021, the amount of "non-current liabilities due
within one year" was RMB248,527.35; the amount of
"right-of-use assets" was RMB1,523,310.37, and the amount of
"lease liabilities" was RMB1,274,783.02. On 31 December 2021,
the amount of "non-current liabilities due within one year" was
RMB1,329,083.27; the amount of "right-of-use assets" was
RMB4,075,422.31, and the amount of "lease liabilities" was
RMB2,976,367.29.
The Company was lessee:
The new lease standards require lessees to recognize right-of-use assets and lease liabilities for all leases, except for short-term leases
and leases of low-value assets with simplified treatment, and to recognize depreciation and interest expenses respectively.
According to the provisions of the new lease standards, for a contract already existing prior to the date of initial adoption, the
Company decides not to reassess whether it is a lease or includes any lease.
The Company decides to adjust the cumulative impact only for those leases outstanding as at January 1, 2021. The amount of
retained earnings and other relevant items in the financial statements at the beginning of the first year of adoption (i.e., January 1,
2021) is adjusted in accordance with the cumulative impact of the first adoption of the standards, and the comparable period
information is not adjusted.
① For finance leases prior to the date of initial adoption, the Company measures the right-of-use assets and lease liabilities at the
original carrying value of the finance leased-in assets and finance lease payable, respectively.
② For operational leasing prior to the date of initial adoption, the Company measures the lease liabilities according to the present
value discounted at the incremental borrowing rate on the date of initial adoption based on the remaining lease payments, and make
necessary adjustments to the right-of-use assets at an amount equal to the lease liabilities based on the prepaid rent.
③ The Company performs impairment tests on right-of-use assets in accordance with the relevant regulations on asset impairment
and conducts accounting treatment accordingly.
For operating leases in which the asset leased prior to the date of initial adoption is a low-value asset, and for operating lease to be
completed within 12 months, the Company adopts simplified treatment without recognizing the right-of-use assets or lease
obligations. In addition, the Company adopts the following simplified treatment for operating leases prior to the date of initial
adoption.
① The same discount rate can be used for leases with similar characteristics in measurement of the lease liability; the measurement
of right-of-use assets may not include initial direct costs.
② If there is an option to renew or an option to terminate the lease, the Company determines the lease term based on the actual
exercise of the option prior to the date of initial adoption and other latest circumstances.
③ As an alternative to impairment tests for right-of-use assets, the Company assesses whether the contract containing the lease is an
onerous contract prior to the date of initial adoption and adjusts the right-of-use asset based on the amount of the loss provision
recorded in the balance sheet prior to the date of initial adoption.
④ If there are changes in leases prior to the date of initial adoption, the Company conducts accounting treatment in accordance with
the final arrangements for lease changes.
In measuring the lease liability, the Company uses the incremental borrowing rate as at 1 January 2021 to discount the lease
payments, with the incremental borrowing rate ranging from 4.10% to 5.40%. The process of adjustment to differences from the lease
liabilities recorded in the balance sheet as at 1 January 2021 is as follows:
155
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Outstanding minimum lease payments under significant operating leases as disclosed in the 44,465,386.36
consolidated financial statements as at 31 December 2020
Less: Simplified short-term lease payments 21,600.00
Simplified leases with a remaining lease term of less than 12 months
Simplified low-value asset leases (except for short-term lease payments for low-value assets)
Subtotal 44,443,786.36
Present value of interest rate discounted at the Company's incremental borrowing rate on 1 January 39,209,648.76
2021
Lease liabilities under the new lease standard as at 1 January 2021 39,209,648.76
The Company was lessor:
For subleases classified as operating leases prior to the date of initial adoption and still in existence after the date of initial adoption,
the Company reassesses the remaining contractual terms and conditions of the original lease and sublease at the date of initial
adoption and classifies them in accordance with the provisions of the new lease standards. If the sublease is reclassified as a finance
lease, the Company conducts accounting treatment for it as a new finance lease. Except for subleases, the Company is not required to
adjust leases for which it is the lessor in accordance with the new lease standards. The Company conducts accounting treatment in
accordance with the new lease standards from the date of initial adoption.
(II) Changes in Accounting Estimates
No such cases in the Reporting Period.
(III) Correction of prior accounting errors
No such cases in the Reporting Period.
(2) Changes in Accounting Estimates
□ Applicable √ Not applicable
(3) Adjustments to the Financial Statements at the Beginning of the First Execution Year of any New Standards Governing
Leases since 2021
Applicable
Whether items of balance sheets at the beginning of the year need to be adjusted
√ Yes □ No
Consolidated balance sheet
Unit: RMB
Item 31 December 2020 1 January 2021 Adjustment
Current assets:
Monetary assets 4,206,266,629.32 4,206,266,629.32
Settlement reserve
156
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Interbank loans granted
Held-for-trading
financial assets
Derivative financial
assets
Notes receivable 0.00
Accounts receivable 187,697,631.47 187,697,631.47
Accounts receivable
financing
Prepayments 50,543,422.85 50,543,422.85
Premiums receivable
Reinsurance receivables
Receivable reinsurance
contract reserve
Other receivables 789,050,350.51 789,050,350.51
Including: Interest
receivable
Dividends
receivable
Financial assets
purchased under resale
agreements
Inventories 5,312,489,258.20 5,312,489,258.20
Contract assets
Assets held for sale
Current portion of
non-current assets
Other current assets 48,991,965.92 48,991,965.92
Total current assets 10,595,039,258.27 10,595,039,258.27
Non-current assets:
Loans and advances to
customers
Investments in debt
obligations
Investments in other
debt obligations
Long-term receivables 0.00
Long-term equity
45,710,220.79 45,710,220.79
investments
157
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Investments in other
1,044,905.12 1,044,905.12
equity instruments
Other non-current
financial assets
Investment property 484,738,506.83 484,738,506.83
Fixed assets 116,233,936.04 116,233,936.04
Construction in progress
Productive living assets
Oil and gas assets
Right-of-use assets 0.00 39,209,648.76 39,209,648.76
Intangible assets 482,049.51 482,049.51
Development costs
Goodwill 0.00
Long-term prepaid
11,862,716.14 11,862,716.14
expense
Deferred income tax
950,681,245.50 950,681,245.50
assets
Other non-current assets 1,564,074.34 1,564,074.34
Total non-current assets 1,612,317,654.27 1,651,527,303.03 39,209,648.76
Total assets 12,207,356,912.54 12,246,566,561.30 39,209,648.76
Current liabilities:
Short-term borrowings
Borrowings from the
central bank
Interbank loans obtained
Held-for-trading
financial liabilities
Derivative financial
liabilities
Notes payable
Accounts payable 468,269,685.65 468,269,685.65
Advances from
473,274.48 473,274.48
customers
Contract liabilities 666,893,629.72 666,893,629.72
Financial assets sold
under repurchase
agreements
Customer deposits and
158
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
interbank deposits
Payables for acting
trading of securities
Payables for
underwriting of securities
Employee benefits
177,190,197.36 177,190,197.36
payable
Taxes payable 2,487,212,979.37 2,487,212,979.37
Other payables 847,142,613.09 847,142,613.09
Including: Interest
payable
Dividends
12,202,676.04 12,202,676.04
payable
Handling charges and
commissions payable
Reinsurance payables
Liabilities directly
associated with assets held
for sale
Current portion of
36,722,824.88 46,521,909.64 9,799,084.76
non-current liabilities
Other current liabilities 43,354,691.51 43,354,691.51
Total current liabilities 4,727,259,896.06 4,737,058,980.82 9,799,084.76
Non-current liabilities:
Insurance contract
reserve
Long-term borrowings 3,587,800,000.00 3,587,800,000.00
Bonds payable
Including: Preferred
shares
Perpetual bonds
Lease liabilities 0.00 29,410,564.00 29,410,564.00
Long-term payables
Long-term employee
benefits payable
Provisions 2,396,947.00 2,396,947.00
Deferred income
Deferred income tax
262.20 262.20
liabilities
159
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Other non-current
108,778,327.45 108,778,327.45
liabilities
Total non-current liabilities 3,698,975,536.65 3,728,386,100.65 29,410,564.00
Total liabilities 8,426,235,432.71 8,465,445,081.47 39,209,648.76
Owners’ equity:
Share capital 595,979,092.00 595,979,092.00
Other equity instruments
Including: Preferred
shares
Perpetual bonds
Capital reserves 80,488,045.38 80,488,045.38
Less: Treasury stock
Other comprehensive
-6,749,589.41 -6,749,589.41
income
Specific reserve
Surplus reserves 19,205,979.63 19,205,979.63
General reserve
Retained earnings 3,038,993,912.43 3,038,993,912.43
Total equity attributable to
owners of the Company as 3,727,917,440.03 3,727,917,440.03
the parent
Non-controlling interests 53,204,039.80 53,204,039.80
Total owners’ equity 3,781,121,479.83 3,781,121,479.83
Total liabilities and
12,207,356,912.54 12,246,566,561.30 39,209,648.76
owners’ equity
Notes to the adjustments
All above adjustments are caused by implementing the new standards governing leases.
1. Influence of implementing the new standards governing leases on the Company’s financial statements on 1 January 2021 is as
follows:
Item Balance sheet
31 December 2020 Influenced 1 January 2021
Right-of-use assets 39,209,648.76 39,209,648.766
Lease liabilities 29,410,564.00 29,410,564.00
Current portion of non-current 36,722,824.88 9,799,084.76 9,799,084.7646,521,909.64
liabilities
Balance sheet of the Company as the parent
Unit: RMB
160
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Item 31 December 2020 1 January 2021 Adjustment
Current assets:
Monetary assets 3,216,703,036.69 3,216,703,036.69
Held-for-trading
financial assets
Derivative financial
assets
Notes receivable
Accounts receivable 2,624,500.42 2,624,500.42
Accounts receivable
financing
Prepayments 0.00
Other receivables 145,325,697.20 145,325,697.20
Including: Interest
receivable
Dividends
receivable
Inventories 653,885,107.24 653,885,107.24
Contract assets
Assets held for sale
Current portion of
non-current assets
Other current assets 496,729.09 496,729.09
Total current assets 4,019,035,070.64 4,019,035,070.64
Non-current assets:
Investments in debt
obligations
Investments in other
debt obligations
Long-term receivables
Long-term equity
1,071,176,101.18 1,071,176,101.18
investments
Investments in other
1,275,405.12 1,275,405.12
equity instruments
Other non-current
financial assets
Investment property 303,827,356.62 303,827,356.62
Fixed assets 51,091,963.72 51,091,963.72
161
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Construction in progress
Productive living assets
Oil and gas assets
Right-of-use assets 0.00 1,523,310.37 1,523,310.37
Intangible assets
Development costs
Goodwill
Long-term prepaid
432,440.01 432,440.01
expense
Deferred income tax
252,331,518.26 252,331,518.26
assets
Other non-current assets 1,197,407,234.55 1,197,407,234.55
Total non-current assets 2,877,542,019.46 2,879,065,329.83 1,523,310.37
Total assets 6,896,577,090.10 6,898,100,400.47 1,523,310.37
Current liabilities:
Short-term borrowings
Held-for-trading
financial liabilities
Derivative financial
liabilities
Notes payable
Accounts payable 55,887,947.36 55,887,947.36
Advances from
0.00
customers
Contract liabilities 0.00
Employee benefits
50,710,148.02 50,710,148.02
payable
Taxes payable 3,736,082.67 3,736,082.67
Other payables 3,971,988,862.11 3,971,988,862.11
Including: Interest
payable
Dividends
29,642.40 29,642.40
payable
Liabilities directly
associated with assets held
for sale
Current portion of
31,573,154.86 31,821,682.21 248,527.35
non-current liabilities
162
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Other current liabilities 0.00
Total current liabilities 4,113,896,195.02 4,114,144,722.37 248,527.35
Non-current liabilities:
Long-term borrowings 588,200,000.00 588,200,000.00
Bonds payable
Including: Preferred
shares
Perpetual bonds
Lease liabilities 0.00 1,274,783.02 1,274,783.02
Long-term payables
Long-term employee
benefits payable
Provisions
Deferred income
Deferred income tax
liabilities
Other non-current
40,000,000.00 40,000,000.00
liabilities
Total non-current liabilities 628,200,000.00 629,474,783.02 1,274,783.02
Total liabilities 4,742,096,195.02 4,743,619,505.39 1,523,310.37
Owners’ equity:
Share capital 595,979,092.00 595,979,092.00
Other equity instruments
Including: Preferred
shares
Perpetual bonds
Capital reserves 53,876,380.11 53,876,380.11
Less: Treasury stock
Other comprehensive
-2,545,451.19 -2,545,451.19
income
Specific reserve
Surplus reserves 19,205,979.63 19,205,979.63
Retained earnings 1,487,964,894.53 1,487,964,894.53
Total owners’ equity 2,154,480,895.08 1,487,964,894.53
Total liabilities and
6,896,577,090.10 6,898,100,400.47 1,523,310.37
owners’ equity
Notes to the adjustments
163
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
(4) Retroactive Adjustments to Comparative Data of Prior Years when First Execution of any New Standards Governing
Leases since 2021
□ Applicable √ Not applicable
45. Other
In the Note of the financial statements, the data of the period-beginning refers to the financial statement data on 1 January 2021; the
data of the period-end refers to the financial statement data on 31 December 2021; the Reporting Period refers to the 2021; the same
period of last year refers to the 2020. The same to the Company as the parent.
VI Taxes
1. Main Taxes and Tax Rates
Category of taxes Tax basis Tax rate
Sales of goods or provision of taxable
VAT [Note 1]
services
Applied to 7%, 5%, 1% separately
Urban maintenance and construction tax Turnover tax payable
according to the regional level
Enterprise income tax Taxable income 25%、20%、15%、16.5% [Note 2]
Added value generated from paid
transfer of the use right of state-owned
VAT of land 30%-60%
lands and property right of above-ground
buildings and other attachments
Levied according to price: paid
according to 1.2% of the residual value
of the real estate’s original value after
Real estate tax 1.2%、12%
deducted 30% at once; levied according
to lease: paid according to 12% of the
rental income
Education surcharge Turnover tax payable 3%
Local education surcharge Turnover tax payable 2%
Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate
Name Income tax rate
Chongqing Shenzhen International Trade Center Property
15%
Management Co., Ltd.
Shenzhen SZPRD Housing Assets Operation and Management
20%
Co., Ltd.
Shenzhen Guomao Catering Co., Ltd. 20%
164
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Shenzhen Property Engineering and Construction Supervision
20%
Co., Ltd.
Shenzhen Julian Human Resources Development Co.,Ltd. 20%
Shenzhen Huazhengpeng Property Management Development
20%
Co., Ltd.
Shenzhen Jinhailian Property Management Co.,Ltd. 20%
Shenzhen Zhongtongda House Xiushan Service Co.,Ltd. 20%
Shenzhen Kangping Industry Co.,Ltd. 20%
Shenzhen Teacher Family Training Co., Ltd. 20%
Shenzhen Education Industry Co., Ltd. 20%
Shenzhen Yufa Industry Co., Ltd. 20%
Chongqing Aobo Elevator Co., Ltd. 20%
Shenzhen SZPRD Yanzihu Development Co., Ltd. 20%
Shenzhen SZPRD Fuyuantai Development Co., Ltd. 20%
Shenzhen Social Welfare General Company 20%
Shenzhen Fuyuanmin Property Management Co., Ltd. 20%
Shenzhen Meilong Industrial Development Co., Ltd. 20%
Subsidiaries registered in Hong Kong area 16.50%
Other taxpaying bodies within the consolidated scope 25%
2. Tax Preference
According to the regulations of No. 2, Property Service of No. 37, Commercial Service among the encouraging category of the
Guidance Catalogue of Industry Structure Adjustment (Y2011), the western industry met with the conditions should be collected the
corporate income tax according to 15% of the tax rate. The subsidiary of the Group Chongqing Shenzhen International Trade Center
Property Management Co., Ltd. applies to above policy.
According to the State Administration of Taxation Notice on the Implementation of Inclusive Tax Relief Policy for Small and Micro
Enterprises (Fiscal [2019] No.13), from 1 January 2019, to 31 December 2021, the portion of the annual taxable income of small and
micro enterprises that does not exceed RMB1 million shall be included in the taxable income at a reduced rate of 25%, and the
enterprise income tax shall be paid at a tax rate of 20%. If the annual taxable income exceeds RMB1 million and does not exceed
RMB3 million, it shall be included in the taxable income at a reduced rate of 50%, and the enterprise income tax shall be paid at a tax
rate of 20%. This policy applies to 12 subsidiaries of our group from 2019 onwards, including Chongqing Aobo Elevator Co., Ltd.,
Shenzhen International Trade Center Catering Co., Ltd., etc.
3. Other
[Note 1]: Taxable items and tax rate of the VAT of the Company and its subsidiaries are as follows:
Type of the revenue General rate Percentage charges of
165
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Sales of house property 9% 5%
Rent of real estate 9% 5%
Property service 6% 3%
Catering service 6% 3%
Others 13% --
VII. Notes to Main Items of Consolidated Financial Statements
1. Monetary Assets
Unit: RMB
Item Ending balance Beginning balance
Cash on hand 110,140.62 96,389.26
Bank deposits 1,802,885,900.92 4,193,346,146.43
Other monetary assets 368,830,134.67 12,824,093.63
Total 2,171,826,176.21 4,206,266,629.32
Of which: total amount deposited
53,280,873.00 51,323,986.36
overseas
Total amount of restriction in
373,079,206.86 38,111,717.09
use by guaranteed, pledged or frozen
Other notes:
3. Among other monetary assets, the funds with limited use rights mainly include the interest on deposits arising from
large-denomination CDs of RMB43,388.89, and the margin and interest of RMB368,524,466.29; the funds with limited use rights in
bank deposits mainly include the bank frozen funds and the interest on time deposits of RMB4,335,881.10, plus the balance of the
bank margin account. The above amount is not regarded as cash and cash equivalents due to restrictions on use.
2. Trading Financial Assets
Unit: RMB
Item Ending balance Beginning balance
Of which:
Of which:
Other notes:
3. Derivative Financial Assets
Unit: RMB
166
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Item Ending balance Beginning balance
Other notes:
4. Notes Receivable
(1) Notes Receivable Listed by Category
Unit: RMB
Item Ending balance Beginning balance
Bank acceptance bill 200,000.00
Total 200,000.00
Unit: RMB
Ending balance Beginning balance
Carrying balance Bad debt provision Carrying balance Bad debt provision
Category Carrying Carrying
Withdrawal Withdrawal
Amount Proportion Amount value Amount Proportion Amount value
proportion proportion
Notes receivable for
which bad debt 200,000.
100.00%
provision separately 00
accrued
Of which:
Of which:
200,000.
Total 100.00%
00
Bad debt provision separately accrued: 0.0
Unit: RMB
Ending balance
Name
Carrying balance Bad debt provision Withdrawal proportion Withdrawal reason
Notes receivable with
insignificant single
amount for which bad 200,000.00
debt provision
separately accrued
Total 200,000.00 -- --
Bad debt provision separately accrued:
Unit: RMB
Ending balance
Name
Carrying balance Bad debt provision Withdrawal proportion Withdrawal reason
167
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Withdrawal of bad debt provision by group:
Unit: RMB
Ending balance
Name
Carrying balance Bad debt provision Withdrawal proportion
Notes to the determination basis for the group:
Please refer to the relevant information of disclosure of bad debt provision of other accounts receivable if adopting the general mode
of expected credit loss to withdraw bad debt provision of notes receivable.
□ Applicable √ Not applicable
(2) Bad Debt Provision Withdrawal, Reversed or Recovered in the Reporting Period
Withdrawal of bad debt provision:
Unit: RMB
Changes in the Reporting Period
Beginning
Category Reversal or Ending balance
balance Withdrawal Verification Others
recovery
Of which significant amount of reversed or recovered bad debt provision:
□ Applicable √ Not applicable
(3) Notes Receivable Pledged by the Company at the Period-end
Unit: RMB
Item Ending pledged amount
(4) Notes Receivable which Had Endorsed by the Company or had Discounted and had not Due on the
Balance Sheet Date at the Period-end
Unit: RMB
Amount of recognition termination at the Amount of not terminated recognition at
Item
period-end the period-end
(5) Notes Transferred to Accounts Receivable because Drawer of the Notes Failed to Execute the Contract
or Agreement
Unit: RMB
Amount of the notes transferred to accounts receivable at the
Item
period-end
Other notes:
168
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
(6) Notes Receivable with Actual Verification for the Reporting Period
Unit: RMB
Item Amount verified
Of which, verification of significant notes receivable:
Unit: RMB
Whether occurred
Verification
Reason for because of
Name of entity Nature Amount verified procedures
verification related-party
performed
transactions
Notes of the verification of notes receivable
5. Accounts Receivable
(1) Listed by Category
Unit: RMB
Ending balance Beginning balance
Carrying balance Bad debt provision Carrying balance Bad debt provision
Category Carrying Carrying
Withdrawal Withdrawal
Amount Proportion Amount value Amount Proportion Amount value
proportion proportion
Accounts receivable
withdrawal of Bad 109,656 108,090, 1,565,49 105,273, 105,273,
27.39% 98.57% 34.37% 100.00% 0.00
debt provision ,349.63 851.66 7.97 564.00 564.00
separately accrued
Of which:
Accounts receivable
withdrawal of bad 290,641 20,677,8 269,964, 201,040, 13,342,3 187,697,
72.61% 7.11% 65.63% 6.64%
debt provision of by ,842.05 11.38 030.67 006.98 75.51 631.47
group
Of which:
400,298 128,768, 271,529, 306,313, 118,615, 187,697,
Total
,191.68 663.04 528.64 570.98 939.51 631.47
Bad debt provision separately accrued: RMB108,090,851.66
Unit: RMB
Ending balance
Name
Carrying balance Bad debt provision Withdrawal proportion Withdrawal reason
Shenzhen Jiyong Involved in lawsuit and
93,811,328.05 93,811,328.05 100.00%
Properties & unrecoverable
169
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Resources
Development
Company
Shenzhen Tewei Uncollectible for a
2,836,561.00 2,836,561.00 100.00%
Industry Co., Ltd. long period
Lunan Industry Uncollectible for a
2,818,284.84 2,818,284.84 100.00%
Corporation long period
Shenzhen Hampoo
Expected to be
Science & Technology 1,436,020.29 1,433,070.29 99.79%
unrecoverable
Co., Ltd.
Those with
insignificant single
Uncollectible for a
amount for which bad 8,754,155.45 7,191,607.48 82.15%
long period
debt provision
separately accrued
Total 109,656,349.63 108,090,851.66 -- --
Bad debt provision separately accrued:
Unit: RMB
Ending balance
Name
Carrying balance Bad debt provision Withdrawal proportion Withdrawal reason
Withdrawal of bad debt provision by group:
Unit: RMB
Ending balance
Name
Carrying balance Bad debt provision Withdrawal proportion
Portfolio of credit risk
168,201,366.61 16,970,722.20 10.09%
features
Portfolio of transactions with
122,440,475.44 3,707,089.18 3.03%
other related parties
Total 290,641,842.05 20,677,811.38 --
Notes to the determination basis for the group:
Withdrawal of bad debt provision by group:
Unit: RMB
Ending balance
Name
Carrying balance Bad debt provision Withdrawal proportion
Notes to the determination basis for the group:
Please refer to the relevant information of disclosure of bad debt provision of other accounts receivable if adopting the general mode
of expected credit loss to withdraw bad debt provision of accounts receivable.
□ Applicable √ Not applicable
170
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Disclosure by aging
Unit: RMB
Aging Carrying balance
Within 1 year (including 1 year) 256,710,208.52
1 to 2 years 19,025,427.30
2 to 3 years 8,644,661.51
Over 3 years 115,917,894.35
3 to 4 years 4,765,890.79
4 to 5 years 2,797,132.28
Over 5 years 108,354,871.28
Total 400,298,191.68
(2) Bad Debt Provision Withdrawal, Reversed or Recovered in the Reporting Period
Withdrawal of bad debt provision:
Unit: RMB
Changes in the Reporting Period
Beginning
Category Reversal or Ending balance
balance Withdrawal Verification Others
recovery
Bad debt
provision
105,273,564.00 2,600,912.66 216,375.00 108,090,851.66
withdrawn
separately
Bad debt
provision
13,342,375.51 7,347,996.55 12,560.68 20,677,811.38
withdrawn by
portfolio
Total 118,615,939.51 9,948,909.21 12,560.68 216,375.00 128,768,663.04
Of which significant amount of reversed or recovered bad debt provision:
Unit: RMB
Name of entity Amount reversed or recovered Way of recovery
(3) Accounts Receivable Written-off in Current Period
Unit: RMB
Item Amount verified
Of which the verification of significant accounts receivable:
Unit: RMB
171
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Whether occurred
Verification
Reason for because of
Name of entity Nature Amount verified procedures
verification related-party
performed
transactions
Notes to verification of accounts receivable:
(4) Top 5 of the Ending Balance of the Accounts Receivable Collected according to Arrears Party
Unit: RMB
Proportion to total ending balance of Ending balance of
Name of entity Ending balance
accounts receivable bad debt provision
Shenzhen Bay Technology
107,564,389.39 26.87% 3,226,931.68
Development Co., Ltd.
Shenzhen Jiyong Properties &
Resources Development 93,811,328.05 23.44% 93,811,328.05
Company
Shenzhen Toutiao Technology
13,990,629.35 3.50% 419,718.88
Co., Ltd.
Jinan Xiantou Industrial
5,926,772.12 1.48% 177,803.16
Development Co., Ltd.
Alibaba Cloud Computing Co.,
4,948,006.61 1.24% 148,440.20
Ltd.
Total 226,241,125.52 56.53%
(5) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement of
Accounts Receivable
Other notes:
(6) Accounts Receivable Derecognized due to the Transfer of Financial Assets
6. Accounts Receivable Financing
Unit: RMB
Item Ending balance Beginning balance
The changes of accounts receivable financing in the Reporting Period and the changes in fair value
□ Applicable √ Not applicable
Please refer to the relevant information of disclosure of bad debt provision of other accounts receivable if adopting the general mode
of expected credit loss to withdraw bad debt provision of accounts receivable financing.
□ Applicable √ Not applicable
Other notes:
172
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
7. Prepayment
(1) Prepayment Listed by Aging Analysis
Unit: RMB
Ending balance Beginning balance
Aging
Amount Proportion Amount Proportion
Within 1 year 24,536,766.11 34.32 28,553,066.87 55.83%
1 to 2 years 25,907,661.19 36.24 1,208,311.68 2.36%
2 to 3 years 499,638.55 0.70 769,153.00 1.50%
Over 3 years 19,953,402.48 28.74 20,012,891.30 40.31%
Total 70,897,468.33 -- 50,543,422.85 --
Notes of the reasons of the prepayment aging over 1 year with significant amount but failed settled in time:
(2) Top 5 Prepayment in Ending Balance Collected according to the Prepayment Target
Name of entity Carrying balance As % of the total ending balance of the
prepayments (%)
Shenzhen Qianhai Advanced Information Service Co., 40,050,000.00 56.02
Ltd.
Financial Committee of Shenzhen 19,509,471.00 27.29
Guangzhou OTIS Elevator Company Ltd. 2,814,920.35 3.94
Chongqing Yudi Assets Management Co., Ltd. 1,842,000.00 2.58
Beijing Jingdong Century Information Technology Co., 1,568,091.11 2.19
Ltd.
Total 65,784,482.46 92.02
Other notes:
8. Other Receivables
Unit: RMB
Item Ending balance Beginning balance
Other Receivables 826,857,046.54 789,050,350.51
Total 826,857,046.54 789,050,350.51
(1) Interest Receivable
1) Category of Interest Receivable
Unit: RMB
173
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Item Ending balance Beginning balance
2) Significant Overdue Interest
Unit: RMB
Whether occurred
Entity Ending balance Overdue time Overdue reason impairment and its
judgment basis
Other notes:
3) Information of Withdrawal of Bad Debt Provision
□ Applicable √ Not applicable
(2) Dividend Receivable
1) Dividend receivable classification
Unit: RMB
Project (or investee) Ending balance Beginning balance
2) Significant Dividends Receivable Aging over 1 Year
Unit: RMB
Whether occurred
Project (or investee) Ending balance Aging Reason impairment and its
judgment basis
3) Information of Withdrawal of Bad Debt Provision
□ Applicable √ Not applicable
Other notes:
(3) Other Receivables
1) Other Receivables Classified by Account Nature
Unit: RMB
Nature Closing book balance Beginning carrying amount
Security Deposit 14,994,149.35 10,259,805.89
Margin 43,346,482.90 45,948,194.30
Reserve fund 205,540.61 595,148.50
174
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Payment on behalf 8,661,906.02 8,381,989.28
Intercourse funds 818,090,743.65 763,481,109.87
Others 13,851,782.74 13,537,736.74
Total 899,150,605.27 842,203,984.58
2) Withdrawal of Bad Debt Provision
Unit: RMB
Stage 1 Stage 2 Stage 3
Expected credit Expected loss in the Expected credit losses for
Bad debt provision Total
loss of the next 12 duration (credit the entire duration (with
months impairment not occurred) credit impairment)
Balance as at 1 January
25,178,102.14 27,975,531.93 53,153,634.07
2021
Balance of 1 January
2021 in the Current —— —— —— ——
Period
Withdrawal of the
17,634,708.62 1,505,275.37 19,139,983.99
Current Period
Reversal of the
59.33 59.33
Reporting Period
Balance as at 31
42,812,751.43 29,480,807.30 72,293,558.73
December 2021
Changes of carrying amount with significant amount changed of loss provision in the Current Period
□ Applicable √ Not applicable
Disclosure by aging
Unit: RMB
Aging Carrying balance
Within 1 year (including 1 year) 476,809,999.59
1 to 2 years 348,914,837.82
2 to 3 years 14,696,645.67
Over 3 years 58,729,122.19
3 to 4 years 3,104,460.54
4 to 5 years 2,120,642.08
Over 5 years 53,504,019.57
Total 899,150,605.27
175
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
3) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
Withdrawal of bad debt provision:
Unit: RMB
Changes in the Reporting Period
Beginning
Category Reversal or Verificat Ending balance
balance Withdrawal Others
recovery ion
Bad debt provision
27,975,531.93 1,505,275.37 29,480,807.30
withdrawn separately
Bad debt provision
25,178,102.14 17,634,708.62 59.33 42,812,751.43
withdrawn by portfolio
Total 53,153,634.07 19,139,983.99 59.33 72,293,558.73
Other receivables withdrawal of bad debt provision by group
Portfolio name Ending balance
Carrying balance Bad debt provision Withdrawal proportion (%)
Portfolio of credit risk features 83,820,294.49 26,116,966.71 31.16
Total 83,820,294.49 26,116,966.71 31.16
Note: The Company's subsidiary Shenzhen Rongyao Real Estate Development Co., Ltd. has receivable amounts of RMB401,500,000
and RMB355,026,200 from related parties Shenzhen Xinhai Holding Co., Ltd. and Shenzhen Xinhai Rongyao Real Estate
Development Co., Ltd. respectively. Considering the recoverability in a prudent manner, the current management accrued the bad
debt provision accounting for 3% of the relevant debts after deducting the future repayment, which was reviewed and approved by
the 8th meeting of the 10th Board of Directors of the Company on March 29, 2022.
Of which the bad debt provision reversed or recovered with significant amount during the Reporting Period:
Unit: RMB
Name of entity Amount reversed or recovered Way of recovery
4) Particulars of the Actual Verification of Other Receivables during the Reporting Period
Unit: RMB
Item Amount verified
Of which the verification of significant other receivables:
Unit: RMB
Whether occurred
Verification
Reason for because of
Name of entity Nature Amount verified procedures
verification related-party
performed
transactions
Notes to the verification of other receivables:
176
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
5) Top 5 of the Ending Balance of Other Receivables Collected according to the Arrears Party
Unit: RMB
Proportion to ending Ending
Name of entity Nature Ending balance Aging balance of total other balance of bad
receivables% debt provision
Shenzhen Xinhai Holding Co.,
Ltd. and the related party
Intercourse
Shenzhen Xinhai Rongyao 756,526,157.01 1 to 2 years 84.14% 16,695,784.72
funds
Real Estate Development Co.,
Ltd.
Shenzhen Bangling Stock Intercourse
30,000,000.00 1 to 2 years 3.34% 3,000,000.00
Cooperative Company funds
Shenzhen Bay Technology Intercourse Within 1 year
11,809,060.35 1.31% 419,496.75
Development Co., Ltd. funds 1 to 2 years
Affordable Housing
Intercourse
Development Center of 11,145,688.46 Within 1 year 1.24%
funds
Tongshan District in Xu Zhou
Total -- 809,480,905.82 -- 90.02% 20,115,281.47
6) Accounts Receivable Involving Government Subsidies
Unit: RMB
Project of government Estimated recovering
Name of entity Ending balance Ending aging
subsidies time, amount and basis
7) Derecognition of Other Receivables due to the Transfer of Financial Assets
8) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement of
Other Receivables
Other notes:
9. Inventories
Whether the Company needs to comply with the disclosure requirements for the real estate industry
Yes
(1) Category of Inventory
The Company shall comply with the disclosure requirements for the real estate industry in the Self-regulatory Guidelines No. 3 for
Companies Listed on Shenzhen Stock Exchange - Industry Information Disclosure.
177
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Classification by nature:
Unit: RMB
Ending balance Beginning balance
Depreciation Depreciation
reserves of reserves of
inventories or inventories or
Item Carrying impairment Carrying impairment
Carrying value Carrying value
balance provision for balance provision for
contract contract
performance performance
costs costs
8,720,133,125. 8,713,484,721. 4,867,562,388. 4,860,913,984.
R&D expenses 6,648,404.13 6,648,404.13
46 33 16 03
Developing
409,687,436.41 409,687,436.41 450,832,522.28 450,832,522.28
properties
Raw materials 1,147,911.90 512,182.07 635,729.83 1,169,494.26 535,302.89 634,191.37
Low-value
50,088.44 50,088.44 61,146.54 61,146.54
consumables
Products on
2,162,340.53 2,094,300.39 68,040.14 2,141,714.37 2,094,300.39 47,413.98
hand
9,133,180,902. 9,123,926,016. 5,321,767,265. 5,312,489,258.
Total 9,254,886.59 9,278,007.41
74 15 61 20
Disclose main items of "R&D expenses" and interest capitalization in the following format:
Unit: RMB
Of
which:
Transfe amount
Accum
rred to Increas of
Time Estimat ulated
Estimat develop Other e (R&D capitali
for ed date Beginni amount
ed total ing decreas expense Ending zed Source
Project comme of ng of
investm properti ed s) for balance interest of fund
ncemen complet balance interest
ent es for amount this s for
t ion capitali
this period the
zation
period Reporti
ng
Period
Guanla
31
n 7 6,941,5 3,570,4 234,81 3,805,3
Decem 114,870 114,870 Bank
Banglin January 00,000. 99,129. 3,073.2 12,202.
ber ,683.43 ,683.43 loans
g 2021 00 09 6 35
2025
project
178
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
SZPRD
-Bansh 31
15 235,81 168,81 196,19
an Januar 27,382,
March 0,000.0 5,335.1 7,525.9 Others
Yujing y 190.74
2019 0 9 3
Phase 2022
II
SZPRD
-Golde
31
n 1 1,400,2 245,59 378,76 133,16
Decem
Collar’s March 70,000. 6,393.0 3,568.4 7,175.4 Others
ber
Resort- 2014 00 7 8 1
2021
Buildin
gA
SZPRD
-Fucha
608,58 677,36
ng 30 June 30 June 911,330 68,787,
0,860.2 8,072.1 Others
Garden 2018 2023 ,000.00 211.89
1 0
Phase
II
Yupinlu 226,61 232,03
5,416,8
anshan 3,926.2 0,746.6 Others
20.38
Garden 4 2
Hainan
Qiongs 6,648,4 6,648,4
Others
han 04.13 04.13
Land
Shenhu
37,002, 37,002,
i Others
030.89 030.89
Garden
Fuyuan
1,143,1 7,983,9 9,127,0
tai Others
84.20 04.91 89.11
Project
Guang
1,621,0 1,621,0
mingyu
00,000. 00,000. Others
tang
00 00
Project
Land
2021W 2,133,8 2,133,8
R023, 26,142. 26,142. Others
Humen 11 11
Town
179
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
2,663,1 1,042,2 1,620,9
Others Others
25.14 12.92 12.22
9,488,9 4,867,5 378,76 4,232,3 8,720,1
1,042,2 114,870 114,870
Total -- -- 10,000. 62,388. 3,568.4 76,518. 33,125. --
12.92 ,683.43 ,683.43
00 16 8 70 46
Disclose main items of “Developing properties” in the following format:
Unit: RMB
Of which:
Accumulated amount of
Time of
Beginning amount of capitalized
Project completio Increase Decrease Ending balance
balance interest interests for the
n
capitalization Reporting
Period
SZPRD-
1
Langqiao 3,384,362.2
Decembe 62,954.51 3,447,316.75 83,077,702.96
Internatio 4
r 2012
nal
SZPRD-
Hupan 1 June 58,947,050.
45,548.29 1,635,961.40 57,356,637.66
Yujing 2015 77
Phase I
SZPRD-
Banshan 18,784,966. 18,784,966.5
10,446,911.43
Yujing 55 5
Phase I
SZPRD-S
25,150,175.
onghu 644,540.04 24,505,635.91 27,205,315.95
95
Langyuan
SZPRD-
Hupan 80,210,044. 35,028,840.1
124,997.90 45,306,202.60 30,539,392.65
Yujing 87 7
Phase II
SZPRD-
Golden 254,824,025 392,622,578. 377,201,145.
270,245,459.13
Collar’s .85 69 41
Resort
Internatio
nal Trade 4,839,083.1
4,839,083.10 26,385,636.29
Center 0
Plaza
Huangyu 790,140.58 790,140.58
180
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
yuan A
Area
Podium
Building
of 645,532.65 645,532.65
Fuchang
Building
Other 3,257,139.7
310,557.21 1,016,268.90 2,551,428.03
items 2
450,832,522 393,166,636. 434,311,722.
Total -- 409,687,436.41 177,654,959.28
.28 60 47
Classification of “Developing properties with the collection of payments in installments”, “Renting developing properties” and
“Temporary Housing”:
Unit: RMB
Project Beginning balance Increase Decrease Ending balance
(2) Falling Price Reserves of Inventory and Impairment Provision for Contract Performance Costs
Disclosure of falling provision withdrawal of inventory in the following format:
Classification by nature:
Unit: RMB
Beginnin Increased amount Decrease
Ending
Item g Reversal or Remarks
Withdrawal Others Others balance
balance write-off
6,648,40
R&D expenses 6,648,404.13
4.13
535,302.
Raw materials -23,120.82 512,182.07
89
Products on 2,094,30
2,094,300.39
hand 0.39
9,278,00
Total -23,120.82 9,254,886.59 --
7.41
Classified by main items:
Unit: RMB
Beginnin Increased amount Decrease
Ending
Project g Reversal or Remarks
Withdrawal Others Others balance
balance write-off
Hainan 6,648,40
6,648,404.13
Qiongshan 4.13
181
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Land
6,648,40
Total 6,648,404.13 --
4.13
(3) Notes to the Ending Balance of Inventories Including Capitalized Borrowing Expense
The ending balance of inventories including capitalized borrowing expense is detailed as follows:
Project Period-begin Reporting Period Carry-over in Period-end
Reporting Period
SZPRD-Guanlan Bangling 114,870,683.43 114,870,683.43
SZPRD-Langqiao International 2,971,986.54 2,971,986.54
SZPRD-Hupan Yujing Phase I 1,422,628.90 130,159.50 1,292,469.40
SZPRD-Golden Collar’s Resort 12,740,265.51 11,624,409.11 1,115,856.40
Total 17,134,880.95 114,870,683.43 11,754,568.61 120,250,995.77
(4) Inventory Restrictions
Disclosing restricted inventory by project:
Unit: RMB
Project Beginning balance Ending balance Reason for restriction
10. Contract Assets
Unit: RMB
Ending balance Beginning balance
Item Carrying Impairment Carrying Carrying Impairment
Carrying value
balance provision value balance provision
Amount of significant changes in carrying value of contract assets in the Reporting Period and reasons thereof:
Unit: RMB
Item Change in amount Reason
If the bad debt provision for contract assets in accordance with the general model of expected credit losses, the information related to
the bad debt provision shall be disclosed by reference to the disclosure method of other receivables:
□ Applicable √ Not applicable
Withdrawal of impairment provision for contract assets in the Reporting Period
Unit: RMB
Withdrawal of the Reversal of the
Item Write-off/verified Reason
Current Period Reporting Period
Other notes:
182
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
11. Held-for-sale Assets
Unit: RMB
Estimated
Closing book Impairment Ending Estimated
Item Fair value disposal
balance provision carrying value disposal time
expense
Other notes:
12. Current Portion of Non-current Assets
Unit: RMB
Item Ending balance Beginning balance
Significant investments in debt obligations /other investments in debt obligations
Unit: RMB
Ending balance Beginning balance
Actual Actual
Item Coupon Maturity Coupon Maturity
Par value interest Par value interest
rate date rate date
rate rate
Other notes:
13. Other Current Assets
Unit: RMB
Item Ending balance Beginning balance
Prepaid VAT 13,429,805.73 7,467,152.90
Deducted input tax 7,108,708.02 11,705,028.57
Prepaid income tax 84,364.36
Prepaid land VAT 30,741,415.30 28,960,506.43
Prepaid urban construction tax 1,423,246.18 501,245.53
Prepaid education surcharge 1,016,604.40 358,032.49
Immediate rebate of receivable software
358,306.69
sales VAT
Total 54,162,450.68 48,991,965.92
Other notes:
14. Investments in Debt Obligations
Unit: RMB
Item Ending balance Beginning balance
183
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Carrying Impairment Carrying Impairment
Carrying value Carrying value
balance provision balance provision
Significant investments in debt obligations
Unit: RMB
Ending balance Beginning balance
Actual Actual
Item Coupon Maturity Coupon Maturity
Par value interest Par value interest
rate date rate date
rate rate
Withdrawal of impairment provision
Unit: RMB
Stage 1 Stage 2 Stage 3
Expected credit Expected loss in the Expected credit losses for
Bad debt provision Total
loss of the next 12 duration (credit the entire duration (with
months impairment not occurred) credit impairment)
Balance of 1 January
2021 in the Current -- -- -- --
Period
Changes of carrying amount with significant amount changed of loss provision in the Current Period
□ Applicable √ Not applicable
Other notes:
15. Other Investments in Debt Obligations
Unit: RMB
Accumulat
ed
Change in provision
Accumulat
fair value for losses
Beginning Accrued Ending ed changes
Item in the Cost recognized Remarks
balance interest balance in fair
Reporting in other
value
Period comprehen
sive
income
Significant other investments in debt obligations
Unit: RMB
Ending balance Beginning balance
Actual Actual
Item Coupon Maturity Coupon Maturity
Par value interest Par value interest
rate date rate date
rate rate
Withdrawal of impairment provision
184
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Unit: RMB
Stage 1 Stage 2 Stage 3
Expected credit Expected loss in the Expected credit losses for
Bad debt provision Total
loss of the next 12 duration (credit the entire duration (with
months impairment not occurred) credit impairment)
Balance of 1 January
2021 in the Current —— —— —— ——
Period
Changes of carrying amount with significant amount changed of loss provision in the Current Period
□ Applicable √ Not applicable
Other notes:
16. Long-term Receivables
(1) List of Long-term Receivables
Unit: RMB
Ending balance Beginning balance
Interval of
Item Carrying Bad debt Carrying Bad debt Carrying
Carrying value discount rate
balance provision balance provision value
Financing lease
23,831,889.11 23,831,889.11
accounts
Of which:
unrealized
16,430,753.09 16,430,753.09
financing
income
Total 23,831,889.11 23,831,889.11 --
Impairment of bad debt provision
Unit: RMB
Stage 1 Stage 2 Stage 3
Expected credit Expected loss in the Expected credit losses for
Bad debt provision Total
loss of the next 12 duration (credit the entire duration (with
months impairment not occurred) credit impairment)
Balance of 1 January
2021 in the Current —— —— —— ——
Period
Changes of carrying amount with significant amount changed of loss provision in the Current Period
□ Applicable √ Not applicable
185
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
(2) Derecognition of Long-term Receivables due to the Transfer of Financial Assets
(3) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement of
Long-term Receivables
Other notes:
17. Long-term Equity Investment
Unit: RMB
Increase/decrease
Gains
and Cash Ending
Beginni Adjust Withdr Ending
losses bonus balance
ng Additio ment of awal of balance
Investe Investm recogni Other or of
balance nal other impair (carryin
e ent zed equity profits Others depreci
(carryin investm compre ment g
reduced under changes announ ation
g value) ent hensive provisi value)
the ced to reserve
income on
equity issue
method
I. Joint ventures
Shenzh
en Real
Estate
Jifa 39,053, 4,462,7 43,516,
Wareho 923.92 41.20 665.12
using
Co.,
Ltd.
Shenzh
en
Tian’an
Internat
ional
Mansio
n 6,656,2 187,71 6,844,0
Propert 96.87 9.38 16.25
y
Admini
stration
Co.,
Ltd.
(Tian’a
186
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
n
Compa
ny)
Subtota 45,710, 4,650,4 50,360,
l 220.79 60.58 681.37
II. Associated enterprises
Shenzh
en
Wufang
Cerami 18,983, 18,983, 18,983,
cs 614.14 614.14 614.14
Industri
al Co.,
Ltd.
Shenzh
en
Kangfu
165,000 165,00 165,00
Health
.00 0.00 0.00
Product
s Co.,
Ltd.
Shenzh
en
Xingha
o
756,670 756,67 756,67
Imitatio
.68 0.68 0.68
n
Porcela
in Co.,
Ltd.
Shenzh
en
Social
Welfare
Compa 326,693 326,69 326,69
ny .24 3.24 3.24
Fuda
Electro
nics
Factory
Shenzh 1,684,3 1,684,3 1,684,3
en 50.00 50.00 50.00
187
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Fulong
Industr
y
Develo
pment
Co.,
Ltd.
Haonia
2,733,5 2,733,5 2,733,5
nhua
70.05 70.05 70.05
Hotel
Shenzh
en
Educati
on
500,000 500,00 500,00
Fund
.00 0.00 0.00
Longhu
a
Invest
ment
Shenzh
en
Kangle
Sports 540,060 540,06 540,06
Club .00 0.00 0.00
Huangf
a
Branch
Danken
g
Village
Plants
of
Fumin 1,168,9 1,168,9 1,168,9
in 73.20 73.20 73.20
Guanla
n
Town,
Shenzh
en City
Shenzh
en Bull 500,000 500,00 500,00
Entertai .00 0.00 0.00
nment
188
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Co.,
Ltd.
Shenzh
en
Lianhu
a
Caitian
1,475,4 1,475,4 1,475,4
Propert
65.91 65.91 65.91
y
Manag
ement
Co.,
Ltd.
Shenzh
en
Yangyu
1,030,0 1,030,0 1,030,0
an
00.00 00.00 00.00
Industri
al Co.,
Ltd.
Jiakaife
ng Co.,
Ltd. 600,000 600,00 600,00
Bao’an .00 0.00 0.00
Compa
ny
Guiyua
350,000 350,00 350,00
n
.00 0.00 0.00
Garage
Shenzh
en
Wuwei
ben 500,000 500,00 500,00
Roof .00 0.00 0.00
Greeni
ng Co.,
Ltd.
Shenzh
enYuan
240,000 240,00 240,00
ping
.00 0.00 0.00
Plastic
Steel
189
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Doors
Co.,
Ltd.
Shenzh
en
Youfan
100,000 100,00 100,00
g
.00 0.00 0.00
Printin
g Co.,
Ltd.
Shenzh
en
Lushen
g
Industri 100,000 100,00 100,00
al .00 0.00 0.00
Develo
pment
Co.,
Ltd.
Subtota 31,754, 31,754, 31,754,
l 397.22 397.22 397.22
77,464, 4,650,4 82,115, 31,754,
Total
618.01 60.58 078.59 397.22
Other notes:
18. Other Equity Instrument Investment
Unit: RMB
Item Ending balance Beginning balance
Gintian Industry (Group) Co., Ltd. 1,002,551.95 1,044,905.12
Total 1,002,551.95 1,044,905.12
Non-trading equity instrument investment in the Reporting Period disclosed by items
Unit: RMB
Amount of Reason for Reason for
other assigning to other
Dividend comprehensive measure in fair comprehensive
Accumulative Accumulative
Project income income value of which income
gains losses
recognized transferred to changes transferred to
retained included other retained
earnings comprehensive earnings
190
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
income
Not aiming at
Gintian
gaining
Industry
2,587,804.36 earnings by
(Group) Co.,
selling equity
Ltd.
in the near term
Other notes:
19. Other Non-current Financial Assets
Unit: RMB
Item Ending balance Beginning balance
Other notes:
20. Investment Property
(1) Investment Property Adopted the Cost Measurement Mode
√ Applicable □ Not applicable
Unit: RMB
Construction in
Item Houses and buildings Land use right Total
progress
I. Original carrying
value
1. Beginning
806,486,705.38 30,262,437.05 33,319,759.75 870,068,902.18
balance
2. Increased
-1,208,306.16 4,493,892.16 3,285,586.00
amount of the period
(1) Outsourcing 4,493,892.16 4,493,892.16
(2) Transfer from
inventory/fixed
1,585,405.18 1,585,405.18
assets/construction in
progress
(3) Business
combination increase
(4) Others -2,793,711.34 -2,793,711.34
3. Decreased
8,993,359.35 8,993,359.35
amount of the period
(1) Disposal 1,525,917.94 1,525,917.94
(2) Other transfer
191
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
(3) Exchange
-331,334.04 -331,334.04
adjustment
(4) Others 7,136,107.37 7,136,107.37
4. Ending balance 796,285,039.87 30,262,437.05 37,813,651.91 864,361,128.83
II. Accumulative
depreciation and
accumulative
amortization
1. Beginning
362,944,868.15 15,342,910.07 7,042,617.13 385,330,395.35
balance
2. Increased
26,627,612.91 527,539.36 7,784,673.37 34,939,825.64
amount of the period
(1) Withdrawal or
26,214,906.23 527,539.36 7,784,673.37 34,527,118.96
amortization
(2)
Transferred from 412,706.68 412,706.68
self-used assets
3. Decreased
5,562,941.64 5,562,941.64
amount of the period
(1) Disposal 50,705.46 50,705.46
(2) Other transfer 5,197,468.84 5,197,468.84
(3) Exchange
-314,767.34 -314,767.34
adjustment
4. Ending balance 384,009,539.42 15,870,449.43 14,827,290.50 414,707,279.35
III. Impairment
provision
1. Beginning
balance
2. Increased
amount of the period
(1) Withdrawal
3. Decreased
amount of the period
(1) Disposal
(2) Other transfer
4. Ending balance
192
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
IV. Carrying value
1. Ending
412,275,500.45 14,391,987.62 22,986,361.41 449,653,849.48
carrying value
2. Beginning
443,541,837.23 14,919,526.98 26,277,142.62 484,738,506.83
carrying value
(2) Investment Property Adopted the Fair Value Measurement Mode
□ Applicable √ Not applicable
The Company shall comply with the disclosure requirements for the real estate industry in the Self-regulatory Guidelines No. 3 for
Companies Listed on Shenzhen Stock Exchange - Industry Information Disclosure.
Investment properties measured in fair value by project disclosure:
Unit: RMB
Lease
income
Time of during Beginni Range of Reason for fair
Locatio Floor Ending fair
Project complet this ng fair fair value value changes
n area value
ion Reporti value changes and report index
ng
Period
Whether the Company has new investment properties in construction period measured in fair value
□Y√N
Whether the Company has new investment properties measured in fair value
□Y√N
(3) Investment Property Failed to Accomplish Certification of Property
Unit: RMB
Item Carrying value Reason
02-01 plot of Statutory plan in Replaced from the construction of Xiamen-Shenzhen Railway, and
8,724,149.28
Baolong East Area hasn’t exchanged for the new certification
Obtained after the success in the last instance in 2017, relevant
Meilin land [Note 1]
certifications of property are in the procedure
The house is used for property management, once occupied by the
507 Unit, Block No. 6, Maguling 25,298.81 third party, a property management company, now has been
recovered, but hasn’t handled the warrant yet.
Total 8,749,448.09
Other notes:
[Note 1] As at 31 December 2021, the original carrying value of Meilin land was RMB3,885,469.40, the accumulated accrued
depreciation was RMB3,885,469.40, and the carrying value was RMB0.
193
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
21. Fixed Assets
Unit: RMB
Item Ending balance Beginning balance
Fixed assets 108,161,443.02 116,233,936.04
Total 108,161,443.02 116,233,936.04
(1) List of Fixed Assets
Unit: RMB
Houses and Machinery Transportation Decoration of Other
Item Total
buildings equipment vehicle the fixed assets machinery
I. Original
carrying value
1. Beginning
160,927,555.25 4,933,197.00 14,976,483.00 34,061,422.86 42,530,271.18 257,428,929.29
balance
2. Increased
amount of the 2,894,630.27 6,214,951.43 4,646,481.33 14,079,567.03
period
(1)
2,894,630.27 4,279,817.30 7,497,951.57
Purchase
(2)
Transfer from
6,204,271.43 6,204,271.43
construction in
progress
(3)
Business
366,664.03 366,664.03
combination
increase
(4) Others 10,680.00 10,680.00
3. Decreased
amount of the 1,738,741.05 1,179,844.00 2,717,639.75 1,168,691.21 6,804,916.01
period
(1)
Disposal or 1,179,844.00 1,168,691.21 2,348,535.21
scrap
(2) Exchange
153,335.87 153,335.87
adjustment
(3) Others 1,585,405.18 323,504.00 2,717,639.75 4,626,548.93
194
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
4. Ending
159,188,814.20 4,933,197.00 16,691,269.27 37,558,734.54 46,008,061.30 264,380,076.31
balance
II.
Accumulative
depreciation
1. Beginning
105,061,072.73 219,685.18 10,040,163.20 4,963,933.66 20,834,421.32 141,119,276.09
balance
2. Increased
amount of the 3,671,587.68 470,314.32 1,518,188.56 6,226,756.99 5,942,907.55 17,829,755.10
period
(1)
3,671,587.68 470,314.32 1,518,188.56 6,226,756.99 5,942,907.55 17,829,755.10
Withdrawal
3. Decreased
amount of the 552,630.16 1,143,119.00 1,110,365.90 2,806,115.06
period
(1)
Disposal or 1,143,119.00 1,110,365.90 2,253,484.90
scrap
(2) Exchange
139,923.48 139,923.48
adjustment
(3) Others 412,706.68 412,706.68
4. Ending
108,180,030.25 689,999.50 10,415,232.76 11,190,690.65 25,666,962.97 156,142,916.13
balance
III. Impairment
provision
1. Beginning
75,717.16 75,717.16
balance
2. Increased
amount of the
period
(1)
Withdrawal
3. Decreased
amount of the
period
(1)
Disposal or
195
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
scrap
4. Ending
75,717.16 75,717.16
balance
IV. Carrying
value
1. Ending
51,008,783.95 4,243,197.50 6,276,036.51 26,368,043.89 20,265,381.17 108,161,443.02
carrying value
2. Beginning
55,866,482.52 4,713,511.82 4,936,319.80 29,097,489.20 21,620,132.70 116,233,936.04
carrying value
(2) List of Temporarily Idle Fixed Assets
Unit: RMB
Original carrying Accumulated Impairment
Item Carrying value Remarks
value depreciation provision
(3) Fixed Assets Leased out by Operation Lease
Unit: RMB
Item Ending carrying value
(4) Fixed Assets Failed to Accomplish Certification of Property
Unit: RMB
Item Carrying value Reason
Property rights disputes before, now
Room 406, 2 Unit, Hulunbuir Guangxia
2,560,612.06 have won a lawsuit with unaccomplished
Digital Building
certification of property.
The office building will be removed due
to the project adjustment and a high-rise
office building will be established
Room 401, 402, Sanxiang Business nearby the present address. The existing
729,790.58
Building Office Building property shall be replaced after the
completion of the new office building.
Thus, the certification of the property is
failed to transact.
Other notes:
196
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
(5) Proceeds from Disposal of Fixed Assets
Unit: RMB
Item Ending balance Beginning balance
Other notes:
22. Construction in Progress
Unit: RMB
Item Ending balance Beginning balance
(1) Construction in Progress
Unit: RMB
Ending balance Beginning balance
Item Carrying Impairment Carrying Impairment
Carrying value Carrying value
balance provision balance provision
(2) Changes in Significant Construction in Progress during the Reporting Period
Unit: RMB
Of
Propor
which:
tion of Capital
Accum amoun
accum ization
ulated t of
Transf Other ulated rate of
Beginn Increas amoun capital
erred decrea Ending invest Job interes Source
ing ed t of ized
Project Budget in sed balanc ment schedu ts for of
balanc amoun interes interes
fixed amoun e in le the fund
e t t ts for
assets t constr Report
capital the
uctions ing
ization Report
to Period
ing
budget
Period
(3) List of the Withdrawal of the Depreciation Reserves for Construction in Progress
Unit: RMB
Item Amount withdrawn Reason for withdrawal
Other notes:
197
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
(4) Engineering Materials
Unit: RMB
Ending balance Beginning balance
Item Carrying Impairment Carrying Carrying Impairment Carrying
balance provision value balance provision value
Other notes:
23. Productive Living Assets
(1) Productive Living Assets Adopting Cost Measurement Mode
□ Applicable √ Not applicable
(2) Productive Living Assets Adopting Fair Value Measurement Mode
□ Applicable √ Not applicable
24. Oil and Gas Assets
□ Applicable √ Not applicable
25. Right-of-use Assets
Unit: RMB
Item Houses and buildings Total
1. Beginning balance 39,209,648.76 39,209,648.76
2. Increased amount of the period 46,689,608.09 46,689,608.09
(1) New Leases 46,689,608.09 46,689,608.09
4. Ending balance 85,899,256.85 85,899,256.85
2. Increased amount of the period 14,426,576.12 14,426,576.12
(1) Withdrawal 13,946,768.72 13,946,768.72
(2) Business Combination Increase 479,807.40 479,807.40
4. Ending balance 14,426,576.12 14,426,576.12
1. Ending carrying value 71,472,680.73 71,472,680.73
2. Beginning carrying value 39,209,648.76 39,209,648.76
Other notes:
198
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
26. Intangible Assets
(1) List of Intangible Assets
Unit: RMB
Non-patent Software use
Item Land use right Patent right Total
technologies rights
I. Original
carrying value
1. Beginning
1,234,387.66 1,234,387.66
balance
2. Increased
amount of the 1,465,493.39 1,465,493.39
period
(1)
Purchase
(2) Internal
R&D
(3)
Business
1,465,493.39 1,465,493.39
combination
increase
3. Decreased
amount of the
period
(1)
Disposal
4. Ending
2,699,881.05 2,699,881.05
balance
II. Accumulated
amortization
1. Beginning
752,338.15 752,338.15
balance
2. Increased
amount of the 465,052.92 465,052.92
period
(1)
378,099.59 378,099.59
Withdrawal
199
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
(2) Business
Combination 86,953.33 86,953.33
Increase
3. Decreased
amount of the
period
(1)
Disposal
4. Ending
1,217,391.07 1,217,391.07
balance
III. Impairment
provision
1. Beginning
balance
2. Increased
amount of the
period
(1)
Withdrawal
3. Decreased
amount of the
period
(1) Disposal
4. Ending
balance
IV. Carrying value
1. Ending
1,482,489.98 1,482,489.98
carrying value
2. Beginning
482,049.51 482,049.51
carrying value
The proportion of intangible assets formed from the internal R&D of the Company at the Period-end to the ending balance of
intangible assets
(2) Land Use Right Failed to Accomplish Certification of Property
Unit: RMB
200
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Item Carrying value Reason
Other notes:
27. Development Costs
Unit: RMB
Increased amount Decrease
Transferred
Recognize
Beginning Internal into the Ending
Item d as
balance developme Others current balance
intangible
nt costs profit or
assets
loss
Total
Other notes:
28. Goodwill
(1) Original Carrying Value of Goodwill
Unit: RMB
Increase Decrease
Name of the invested
Beginning Formed by
units or events Ending balance
balance business Disposal
generating goodwill
combination
Shenzhen Facility
Management
9,446,847.38 9,446,847.38
Community
Technology Co., Ltd.
Total 9,446,847.38 9,446,847.38
(2) Depreciation Reserves of Goodwill
Unit: RMB
Name of the Increase Decrease
invested units
Beginning
or events Ending balance
balance Withdrawal Disposal
generating
goodwill
201
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Total
Information on the Assets Groups or Combination of Assets Groups which Goodwill Belongs to
Carrying value Assets group or combination of assets groups
of goodwill
Main composition Carrying value Recognition method Changes in current
period
9,446,847.38 Shenzhen Facility 16,308,382.57 Assets group or combination of assets groups Goodwill arising from
Management Community capable of generating cash flows business combination
Technology Co., Ltd. independently in consideration of benefits not under the same
from synergies of business combination and control
the management's administration and
monitoring of production and operating
activities.
Notes of the testing process of goodwill impairment, parameters (such as growth rate of the forecast period, growth rate of stable
period, rate of profit, discount rate, forecast period and so on for prediction of future present value of cash flows) and the recognition
method of goodwill impairment losses:
Influence of goodwill impairment testing
Note: The Company acquired 35% equity of Shenzhen Facility Management Community Technology Co., Ltd. in 2021, which was a
business combination not under the same control, and resulted in a goodwill of RMB9,446,847.38 without impairment after the
impairment test.
Other notes:
29. Long-term Prepaid Expense
Unit: RMB
Amortization
Other decreased
Item Beginning balance Increased amount amount of the Ending balance
amount
period
Decoration fee 11,862,716.14 14,880,139.82 4,939,791.01 21,803,064.95
Total 11,862,716.14 14,880,139.82 4,939,791.01 21,803,064.95
Other notes:
30. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Deferred Income Tax Assets Had Not Been Off-set
Unit: RMB
Ending balance Beginning balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
202
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Provision for
118,883,343.63 28,016,893.45 152,217,586.91 36,392,566.23
impairment of assets
Internal unrealized
137,494,156.00 34,373,539.00 28,484,507.52 7,121,126.86
profit
Deductible losses 1,200,124,630.73 299,411,568.81 1,340,927,414.29 334,560,251.68
Accrued land VAT 3,184,602,479.28 796,150,619.82 1,979,350,706.70 494,837,676.67
Estimated profit
calculated at pre-sale
479,584,729.78 119,896,182.45 307,175,110.51 76,793,777.63
revenue of property
enterprises
Other accrued
8,579,103.04 1,862,165.86 5,820,943.33 975,846.43
expenses
Total 5,129,268,442.46 1,279,710,969.39 3,813,976,269.26 950,681,245.50
(2) Deferred Income Tax Liabilities Had not Been Off-set
Unit: RMB
Ending balance Beginning balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
difference liabilities difference liabilities
The carrying value of
fixed assets was larger 1,231,415.14 307,853.79 1,048.80 262.20
than the tax basis
Total 1,231,415.14 307,853.79 1,048.80 262.20
(3) Deferred Income Tax Assets or Liabilities Had Been Off-set Listed in Net Amount
Unit: RMB
Beginning off-set
Ending off-set amount Ending balance of Beginning balance of
amount of deferred
Item of deferred income tax deferred income tax deferred income tax
income tax assets and
assets and liabilities assets and liabilities assets and liabilities
liabilities
Deferred income tax
1,279,710,969.39 950,681,245.50
assets
Deferred income tax
307,853.79 262.20
liabilities
(4) List of Unrecognized Deferred Income Tax Assets
Unit: RMB
203
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Item Ending balance Beginning balance
Deductible temporary difference 64,475,240.37 61,255,144.06
Deductible losses 475,933,209.43 467,373,692.72
Total 540,408,449.80 528,628,836.78
(5) Deductible Losses of Unrecognized Deferred Income Tax Assets Will Due in the Following Years
Unit: RMB
Year Ending amount Beginning amount Remarks
Y2022 49,880,895.14 55,165,608.46 The deductible losses of 2017
Y2023 265,603,820.64 265,603,820.64 The deductible losses of 2018
Y2024 124,830,194.64 124,830,194.64 The deductible losses of 2019
Y2025 21,774,068.98 21,774,068.98 The deductible losses of 2020
Y2026 13,844,230.03 The deductible losses of 2021
Total 75,933,209.43 467,373,692.72 --
Other notes:
31. Other Non-current Assets
Unit: RMB
Ending balance Beginning balance
Item Carrying Impairment Carrying Carrying Impairment Carrying
balance provision value balance provision value
Prepayment for purchase of fixed assets,
investment properties and intangible 115,779.31 115,779.31 867,619.10 867,619.10
assets
Prepayment for equity acquisition [Note 42,726,200 42,726,200
1] .00 .00
2,730,018. 2,730,018.
Others [Note 2] 696,455.24 696,455.24
54 54
45,571,997 45,571,997 1,564,074. 1,564,074.
Total
.85 .85 34 34
Other notes:
[Note 1] The Company's subsidiary, Shenzhen International Trade Center Property Management Co., Ltd., and Shenzhen Shenfubao
(Group) Co., Ltd. signed an equity acquisition agreement in December 2021, in which the underlying assets are the 100% equity of
Shenzhen Shenfubao Property Development Co., Ltd., Shenzhen Shenfubao Hydropower Municipal Service Co., Ltd., and Shenzhen
Free Trade Zone Security Service Co., Ltd. As at December 31, 2021, Shenzhen International Trade Center Property Management
Co., Ltd. had paid RMB42,726,200 for the transfer of 50% equity, and the acquisition has not yet been completed.
[Note 2] The newly added RMB2,635,100 to the Company, i.e. ShenZhen Properties & Resources Development (Group) Ltd., in this
204
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
year is the registered asset of real estate for investment, for the asset involves the relocation property of shanty reconstruction in
Chuanbujie, which is to be handed over with the term over one year; the RMB94,900 related to the Company's subsidiary Shenzhen
Guomaomei Life Service Co., Ltd. is part of the project funds for staff canteen renovation (accounting for 30%).
32. Short-term Borrowings
(1) Category of Short-term Borrowings
Unit: RMB
Item Ending balance Beginning balance
Notes of the category for short-term loans:
(2) List of the Short-term Borrowings Overdue but not Returned
The amount of the overdue unpaid short-term borrowings at the period-end was RMBXXX, of which the significant overdue unpaid
short-term borrowings are as follows:
Unit: RMB
Entity Ending balance Interest rate Overdue time Overdue charge rate
Other notes:
33. Trading Financial Liabilities
Unit: RMB
Item Ending balance Beginning balance
Of which:
Of which:
Other notes:
34. Derivative Financial Liabilities
Unit: RMB
Item Ending balance Beginning balance
Other notes:
35. Notes Payable
Unit: RMB
Category Ending balance Beginning balance
The total amount of notes payable due but unpaid was RMBXXX.
205
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
36. Accounts Payable
(1) List of Accounts Payable
Unit: RMB
Item Ending balance Beginning balance
Engineering construction expense
241,653,580.02 334,297,738.31
payable
Accrued expenses 16,697,665.15 46,894,644.22
Others 78,775,283.51 87,077,303.12
Total 337,126,528.68 468,269,685.65
(2) Significant Accounts Payable Aged over 1 Year
Unit: RMB
Item Ending balance Unpaid/Un-carry-over reason
China Construction Fourth Engineering
43,507,672.83 Unsettled
Division Corp., Ltd.
Shenzhen Planning Bureau of Land
25,000,000.00 Historical problems
Resources
China Construction No. 3 Bureau No. 2
19,386,601.99 Unsettled
Construction Engineering Co., Ltd.
Shenzhen Ruihe Construction
10,659,246.31 Unsettled
Decoration Co., Ltd.
Shenzhen Dingsheng Xingye
5,622,875.50 Unsettled
Technology Co., Ltd.
Total 104,176,396.63 --
Other notes:
37. Advances from Customers
(1) List of Advances from Customers
Unit: RMB
Item Ending balance Beginning balance
Rental 1,265,805.23 473,274.48
Total 1,265,805.23 473,274.48
206
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
(2) Significant Advances from Customers Aged over 1 Year
Unit: RMB
Item Ending balance Unpaid/Un-carry-over reason
38. Contract Liabilities
Unit: RMB
Item Ending balance Beginning balance
House payment in advance 1,329,251,898.56 633,340,922.42
Property fee in advance 22,742,381.14 13,124,519.01
Other payments in advance 19,856,445.90 20,428,188.29
Total 1,371,850,725.60 666,893,629.72
Significant changes in the amount of carrying value and the reason in the Reporting Period
Unit: RMB
Item Change in amount Reason
Sales payment collection from Fuchang Phase II Project in the
Fuchang Phase II Project 524,139,983.49
current period
Total 524,139,983.49 ——
The Company shall comply with the disclosure requirements for the real estate industry in the Self-regulatory Guidelines No. 3 for
Companies Listed on Shenzhen Stock Exchange - Industry Information Disclosure.
The proceeds information of top five advance sale amount:
Unit: RMB
Estimated date of Advance sale
No. Project Beginning balance Ending balance
completion proportion
SZPRD-Golden Collar’s
1 358,877,583.81 543,093,840.68 2 December 2021 80.00%
Resort
SZPRD-Fuchang Garden
2 0.00 524,139,983.49 30 June 2023 99.00%
Phase II
SZPRD-Banshan Yujing
3 247,769,597.25 253,376,242.15 31 January 2022 100.00%
Phase II
SZPRD-Hupan Yujing
4 5,766,348.62 8,401,706.42 30 November 2017 92.39%
Phase II
SZPRD-Hupan Yujing
5 128,440.37 36,697.25 1 June 2015 87.62%
Phase I
207
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
39. Payroll Payable
(1) List of Payroll Payable
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
I. Short-term salary 175,382,038.91 691,375,716.05 676,385,602.34 190,372,152.62
II. Post-employment
benefit-defined 1,808,158.45 63,782,033.29 63,484,409.98 2,105,781.76
contribution plans
III. Termination
1,879,230.55 1,552,878.55 326,352.00
Benefits
Total 177,190,197.36 757,036,979.89 741,422,890.87 192,804,286.38
(2) List of Short-term Salary
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
1. Salary, bonus,
160,923,367.59 606,117,650.00 588,850,457.07 178,190,560.52
allowance, subsidy
2. Employee welfare 1,769,666.63 14,373,645.83 14,959,863.89 1,183,448.57
3. Social insurance 223,040.80 20,063,781.03 20,154,751.30 132,070.53
Of which: Medical
223,040.80 17,212,777.90 17,303,761.47 132,057.23
insurance premiums
Work-related injury 734,012.64 733,999.34 13.30
insurance
Maternity
857,555.87 857,555.87 0.00
insurance
Other
1,259,434.62 1,259,434.62
commercial insurances
4. Housing fund 509,510.97 20,961,153.24 20,288,231.44 1,182,432.77
5. Labor union budget
and employee education 11,956,452.92 12,773,061.38 15,045,874.07 9,683,640.23
budget
8. Non-monetary benefits 17,086,424.57 17,086,424.57
Total 175,382,038.91 691,375,716.05 676,385,602.34 190,372,152.62
208
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
(3) List of Defined Contribution Plans
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
1. Basic pension
50,753,436.03 50,730,052.16 23,383.87
benefits
2. Unemployment
1,255,635.76 1,255,259.70 376.06
insurance
3. Annuity 1,808,158.45 11,772,961.50 11,499,098.12 2,082,021.83
Total 1,808,158.45 63,782,033.29 63,484,409.98 2,105,781.76
Other notes:
40. Taxes Payable
Unit: RMB
Item Ending balance Beginning balance
VAT 29,126,998.08 47,751,975.47
Corporate income tax 81,436,929.10 448,111,036.28
Personal income tax 4,390,509.59 4,826,634.10
Urban maintenance and construction tax 1,787,336.42 3,165,158.73
Land appreciation tax 3,184,727,554.49 1,979,388,881.01
Land use tax 938,263.93 941,099.10
Property tax 406,052.03 447,199.94
Education Surcharge 780,950.94 1,372,723.27
Local education surcharge 523,798.27 918,545.34
Others 106,952.61 289,726.13
Total 3,304,225,345.46 2,487,212,979.37
Other notes:
41. Other Payables
Unit: RMB
Item Ending balance Beginning balance
Dividends payable 12,202,676.04 12,202,676.04
Other payables 947,196,210.25 834,939,937.05
Total 959,398,886.29 847,142,613.09
209
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
(1) Interest Payable
Unit: RMB
Item Ending balance Beginning balance
List of the significant overdue unpaid interest:
Unit: RMB
Entity Overdue amount Overdue reason
Other notes:
(2) Dividends Payable
Unit: RMB
Item Ending balance Beginning balance
Ordinary stock dividends 12,202,676.04 12,202,676.04
Total 12,202,676.04 12,202,676.04
Other notes: including significant dividends payable unpaid for over one year, the unpaid reason shall be disclosed:
Item Amount unpaid Reason
Shenzhen Greening Department 10,869,036.68 Company restructured without clearing payment
object
Labor Union of Shenzhen Greening Department 1,300,000.00 Company restructured without clearing payment
object
Others 33,639.36 Without access to its account and the final
payment is unpaid
Total 12,202,676.04
(3) Other Payables
1) Other Payables Listed by Nature of Account
Unit: RMB
Item Ending balance Beginning balance
Security Deposit 271,656,616.93 236,714,842.73
Margin 13,643,729.01 18,041,272.10
Unpaid remaining amount of equity
transfer
Collection on behalf 1,238,324.46 12,818,680.31
Intercourse funds 425,527,818.25 426,354,105.87
Accrued expenses 169,176,253.17 93,276,622.77
210
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Payment on behalf 16,558,536.76 14,038,360.90
Others 49,394,931.67 33,696,052.37
Total 947,196,210.25 834,939,937.05
2) Significant Other Accounts Payable Aging over One Year
Unit: RMB
Item Ending balance Unpaid/Un-carry-over reason
Shenzhen Pason Aluminum Technology Did not submit the payment application
198,352,106.44
Co., Ltd. for historical reasons
Shenzhen Real Estate Jifa Warehousing Come-and-go accounts without specific
38,796,665.14
Co., Ltd. payment term
Shenzhen Tian’an International Mansion Come-and-go accounts without specific
5,214,345.90
Property Administration Co., Ltd. payment term
Shenzhen Social Commonweal
3,323,202.00 Did not submit the payment application
Foundation
Rainbow Co., Ltd. 2,380,000.00 Margin within the leasing period
Total 248,066,319.48 --
Other notes:
42. Held-for-sale Liabilities
Unit: RMB
Item Ending balance Beginning balance
Other notes:
43. Current Portion of Non-current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Current portion of long-term borrowings 68,984,050.47 36,722,824.88
Lease obligation matured within 1 Year 14,940,651.36 9,799,084.76
Total 83,924,701.83 46,521,909.64
Other notes:
44. Other Current Liabilities
Unit: RMB
Item Ending balance Beginning balance
211
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Tax to be charged off 77,355,792.16 43,354,691.51
Total 77,355,792.16 43,354,691.51
Increase/decrease of the short-term bonds payable:
Unit: RMB
Amorti
Issued zation Repaid
Interest
Bond Beginni in the of in the
Par Issue Issue accrued Ending
Name duratio ng Reporti premiu Reporti
value date amount at par balance
n balance ng m and ng
value
Period depreci Period
ation
Other notes:
45. Long-term Borrowings
(1) Category of Long-term Borrowings
Unit: RMB
Item Ending balance Beginning balance
Pledged loan 2,999,400,000.00 2,999,600,000.00
Mortgage loan 1,500,000.00 3,000,000.00
Credit loan 523,600,000.00 585,200,000.00
Total 3,524,500,000.00 3,587,800,000.00
Note to the category of long-term borrowings:
Other notes, including interest rate range
The pledged borrowings at the period-end were used to develop the Bangling urban renewal project of Shenzhen Rongyao Real
Estate Development Co., Ltd. (hereinafter referred to as “Rongyao Real Estate”) with the duration from 29 November 2019 to 20
November 2024, applying the borrowing rate by rising 1.55% complying with one-year level of loan prime rate. And 69% equity of
Rongyao Real Estate held by the Company was pledged and the guarantee mode was the joint liability guaranty.
The mortgage borrowings at the period-end were used for the daily operating activities of ShenZhen Properties & Resources
Development (Group) Ltd. (hereinafter referred to as the Company) with the duration from 27 November 2020 to 27 November 2023,
applying a floating interest rate. The first-phase execution interest rate was 4.655%, and the pledge was the land use right of Fumin
New Village in Futian District of the Company.
The credit borrowings at the period-end were used for the transaction payment of equity of Shenzhen Toukong Property
Management Co., Ltd. with the duration from 18 May 2020 to 10 May 2025, applying the borrowing rate by adding 23.5 basis points
complying with one-year level of loan prime rate.
212
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
46. Bonds Payable
(1) Bonds Payable
Unit: RMB
Item Ending balance Beginning balance
(2) Changes of Bonds Payable (Excluding Other Financial Instruments Divided as Financial Liabilities such
as Preferred Shares and Perpetual Bonds)
Unit: RMB
Amorti
Issued zation Repaid
Interest
Bond Beginni in the of in the
Par Issue Issue accrued Ending
Name duratio ng Reporti premiu Reporti
value date amount at par balance
n balance ng m and ng
value
Period depreci Period
ation
Total -- -- --
(3) Convertible Conditions and Time for Convertible Corporate Bonds
(4) Notes to Other Financial Instruments Classified as Financial Liabilities
Basic situation of other financial instruments such as preferred shares and perpetual bonds outstanding at the period-end
Changes in financial instruments such as preferred shares and perpetual bonds outstanding at the period-end
Unit: RMB
Outstandin Period-beginning Increase Decrease Period-end
g financial Carrying Carrying Carrying Carrying
Number Number Number Number
instruments value value value value
Notes to basis for the classification of other financial instruments as financial liabilities
Other notes:
47. Lease Liabilities
Unit: RMB
Item Ending balance Beginning balance
Lease payments 124,179,565.50 44,443,786.36
Less: Unrecognized financing expense -26,157,731.25 -5,234,137.60
Less: lease liabilities due within 1 year - 14,940,651.36 -9,799,084.76
213
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Total 83,081,182.89 29,410,564.00
Other notes:
48. Long-term Payables
Unit: RMB
Item Ending balance Beginning balance
(1) Long-term Payables Listed by Nature
Unit: RMB
Item Ending balance Beginning balance
Other notes:
(2) Specific Payables
Unit: RMB
Reason for
Item Beginning balance Increase Decrease Ending balance
formation
Other notes:
49. Long-term Payroll Payable
(1) List of Long-term Payroll Payable
Unit: RMB
Item Ending balance Beginning balance
(2) Changes in Defined Benefit Plans
Obligation present value of defined benefit plans:
Unit: RMB
Item Amount of the current period Amount of the previous period
Plan assets:
Unit: RMB
Item Amount of the current period Amount of the previous period
Net liabilities (net assets) of defined benefit plans:
Unit: RMB
Item Amount of the current period Amount of the previous period
Notes of influence of content of defined benefit plans and its relevant risks to the future cash flow, time and uncertainty of the
214
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Company:
Notes to the results of significant actuarial assumptions and sensitivity analysis of defined benefit plans:
Other notes:
50. Provisions
Unit: RMB
Item Ending balance Beginning balance Reason for formation
Cai Baolin's lawsuit on the
Pending litigation 1,425,490.50 2,396,947.00
residual value of decoration
Total 1,425,490.50 2,396,947.00 --
Other notes, including notes to related significant assumptions and evaluation of significant provisions:
Note: refer to Note XIV-2 for details.
51. Deferred Income
Unit: RMB
Reason for
Item Beginning balance Increase Decrease Ending balance
formation
Item involving government grants:
Unit: RMB
Amount
recorded Amount
into recorded Amount
Amount of non-operat into other offset cost Related to
Beginning Other Ending
Item newly ing income in in the assets/relat
balance changes balance
subsidy income in the Reporting ed income
the Reporting Period
Reporting Period
Period
Other notes:
52. Other Non-current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Utility specific fund 615,787.03 490,603.18
Housing principle fund 21,212,930.24 16,825,921.62
House warming deposit 7,008,598.13 6,925,380.49
Electric Equipment Maintenance fund 4,019,415.44 4,019,415.44
215
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Deputed maintenance fund 34,089,347.95 34,453,351.12
Follow-up investment of employees for
40,000,000.00 40,000,000.00
Guanlan Bangling project
Others 6,594,009.58 6,063,655.60
Total 113,540,088.37 108,778,327.45
Other notes:
53. Share Capital
Unit: RMB
Increase/decrease (+/-)
Beginning
New shares Bonus issue Ending balance
balance Bonus shares Others Subtotal
issued from profit
The sum
595,979,092.00 595,979,092.00
of shares
Other notes:
54. Other Equity Instruments
(1) Basic Information about Other Outstanding Financial Instruments such as Preferred Shares and
Perpetual Bonds at the Period-end
(2) Changes of Outstanding Financial Instruments such as Preferred Shares and Perpetual Bonds at the
Period-end
Unit: RMB
Outstandin Period-beginning Increase Decrease Period-end
g financial Carrying Carrying Carrying Carrying
Number Number Number Number
instruments value value value value
Changes of other equity instruments in the Reporting Period, reasons thereof and basis of related accounting treatment:
Other notes:
55. Capital Reserve
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Other capital reserves 80,488,045.38 80,488,045.38
Total 80,488,045.38 80,488,045.38
Other notes, including a description of the increase or decrease in the current period and the reasons for the change:
216
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
56. Treasury Shares
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Other notes, including a description of the increase or decrease in the current period and the reasons for the change:
57. Other Comprehensive Income
Unit: RMB
Amount of the current period
Less:
recorded
Less:
in other
recorded in
compreh
other
ensive Attribut
comprehen
Income income able to Attribut
sive Endin
before in prior Less: owners able to
Beginning income in g
Item taxation period Income of the non-con
balance prior balanc
in the and tax Compan trolling
period and e
Current transferr expense y as the interests
transferred
Period ed in parent after tax
in profit or
retained after tax
loss in the
earnings
Current
in the
Period
Current
Period
I. Other comprehensive income
-2,545,45 -28,670. -28,670. -2,574,
that may not be reclassified to
1.19 35 35 121.54
profit or loss
Changes in fair value of
-2,545,45 -28,670. -28,670. -2,574,
other equity instrument
1.19 35 35 121.54
investment\
II. Other comprehensive income
-4,204,13 -1,396,3 -1,396,3 -5,600,
that may subsequently be
8.22 93.90 93.90 532.12
reclassified to profit or loss
Differences arising from
translation of foreign -4,204,13 -1,396,3 -1,396,3 -5,600,
currency-denominated financial 8.22 93.90 93.90 532.12
statements
Total of other comprehensive -6,749,58 -1,425,0 -1,425,0 -8,174,
income 9.41 64.25 64.25 653.66
Other notes, including the adjustment of the effective gain/loss on cash flow hedges to the initial recognized amount:
217
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
58. Specific Reserve
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Other notes, including a description of the increase or decrease in the current period and the reasons for the change:
59. Surplus Reserves
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Statutory surplus
18,840,576.50 10,431,568.84 29,272,145.34
reserves
Discretional surplus
365,403.13 365,403.13
reserves
Total 19,205,979.63 10,431,568.84 29,637,548.47
Notes, including changes and reason of change:
60. Retained Earnings
Unit: RMB
Item Reporting Period Same period of last year
Beginning balance of retained profits before
3,038,993,912.43 2,457,119,795.39
adjustments
Beginning balance of retained profits after
3,038,993,912.43 2,457,119,795.39
adjustments
Add: Net profit attributable to owners of the
1,003,969,842.33 798,572,121.74
Company as the parent
Less: Withdrawal of statutory surplus reserve 10,431,568.84 2,802,342.02
Dividend of ordinary shares payable 244,351,427.72 214,552,473.12
Others -656,810.44
Ending retained profits 3,788,180,758.20 3,038,993,912.43
List of adjustment of beginning retained profits:
1) RMBXXX beginning retained earnings was affected by retrospective adjustment conducted according to the Accounting Standards
for Business Enterprises and relevant new regulations.
2) RMBXXX beginning retained earnings was affected by changes in accounting policies.
3) RMBXXX beginning retained earnings was affected by correction of significant accounting errors.
4) RMBXXX beginning retained earnings was affected by changes in combination scope arising from same control.
5) RMBXXX beginning retained earnings was affected totally by other adjustments.
218
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
61. Operating Revenue and Cost of Sales
Unit: RMB
Amount of the current period Amount of the previous period
Item
Revenue Cost Revenue Cost
Lucrative business 4,418,791,748.13 1,482,822,851.76 3,970,087,178.43 1,355,179,663.50
Others 73,173,895.58 8,064,510.40 134,287,467.59 31,530,576.04
Total 4,491,965,643.71 1,490,887,362.16 4,104,374,646.02 1,386,710,239.54
Whether the lower of the net profit before and after deduction of non-recurring gains and losses through audit is negative
□ Yes √ No
Relevant information of revenue:
Unit: RMB
Category of contracts Segment 1 Segment 2 Total
Product categories 4,491,965,643.71 4,491,965,643.71
Of which:
Real estate 3,131,113,534.70 3,131,113,534.70
Property management 1,184,591,970.58 1,184,591,970.58
Leasing business 176,260,138.43 176,260,138.43
Of which:
Shenzhen 4,107,155,381.91 4,107,155,381.91
Other regions 384,810,261.80 384,810,261.80
Of which:
Of which:
Of which:
Of which:
Of which:
Information about performance obligations:
On 31 December 2021, the transaction price assigned to unfulfilled (or partially unfulfilled) performance obligations was
estimated to be RMB1,372 million, which is mainly expected future revenue of transaction prices that have not met the delivery
conditions stipulated in sales contracts of real estate. The Company is expected to achieve the planned sales revenue within one or
two years when the house property is completed and passes the acceptance, which meets the delivery conditions stipulated in sales
contracts, and when the customers acquire the control rights of relevant goods or services.
Information in relation to the transaction price apportioned to the residual contract performance obligation:
The amount of revenue corresponding to performance obligations of contracts signed but not performed or not fully performed
yet was RMB1,371,850,725.60 at the period-end, among which RMB847,710,742.11 was expected to be recognized in 2022,
RMB524,139,983.49 in 2023 and RMBXXX in XXX year.
Other notes:
219
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
The Company shall comply with the disclosure requirements for the real estate industry in the Self-regulatory Guidelines No. 3 for
Companies Listed on Shenzhen Stock Exchange - Industry Information Disclosure.
The top 5 accounts received with confirmed amount in the Reporting Period:
Unit: RMB
No. Project Income balance
1 Golden Collar’s Resort 3,004,412,101.75
2 HupanYujing Phase I and II 56,624,392.75
3 Banshan Yujing Phase I 21,000,000.00
4 Xinhua Town 3,669,619.99
5 Songhu Langyuan 1,849,887.60
62. Taxes and Surtaxes
Unit: RMB
Item Amount of the current period Amount of the previous period
Urban maintenance and construction tax 14,966,538.29 14,940,404.05
Education Surcharge 6,432,023.99 6,420,882.98
Property tax 10,745,037.91 10,257,159.82
Land use tax 1,512,462.96 1,310,782.19
Local education surcharge 4,271,665.96 4,278,425.22
Land appreciation tax 1,309,913,734.35 1,273,927,485.51
Other taxes 2,751,106.73 2,213,088.71
Total 1,350,592,570.19 1,313,348,228.48
Other notes:
63. Selling Expense
Unit: RMB
Item Amount of the current period Amount of the previous period
Agency fee 35,845,559.65 7,676,210.19
Consultancy and sales service charges 8,151,107.45 10,939,043.07
Advertising expenses 9,731,964.11 10,794,534.19
Employee remuneration 6,438,365.79 5,534,877.38
Others 13,183,785.18 9,808,582.35
Total 73,350,782.18 44,753,247.18
Other notes:
220
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
64. Administrative Expense
Unit: RMB
Item Amount of the current period Amount of the previous period
Employee remuneration 182,612,009.23 166,493,999.24
Administrative office cost 34,696,777.30 35,213,262.38
Assets amortization and depreciation
21,221,737.94 10,987,180.15
expense
Litigation costs 1,315,223.95 482,904.31
Others 23,854,422.87 25,447,797.23
Total 263,700,171.29 238,625,143.31
Other notes:
65. Development Expense
Unit: RMB
Item Amount of the current period Amount of the previous period
Employee remuneration 1,959,851.56
Office cost 64,656.03
R&D material expense 68,288.00
Others 79,002.21
Total 2,171,797.80 0.00
Other notes:
66. Finance Costs
Unit: RMB
Item Amount of the current period Amount of the previous period
Finance costs 75,361,420.03 182,930,469.55
Less: Interest income 74,598,590.37 72,357,101.87
Foreign exchange gains or losses 145,683.08 -421,264.01
Others 4,752,061.02 1,111,455.13
Total 5,660,573.76 111,263,558.80
Other notes:
67. Other Income
Unit: RMB
221
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Sources Amount of the current period Amount of the previous period
Government grants related to income 23,913,655.59 6,802,767.10
Government grants related to assets 341,259.63
Commission charges return of deductible
169,262.03 94,284.37
income tax
Additional deduction of VAT 5,235,737.17 5,476,769.70
Rebate of VAT 668,534.55 55,729.95
Subtotal 29,987,189.34 12,770,810.75
68. Investment Income
Unit: RMB
Item Amount of the current period Amount of the previous period
Long-term equity investment income
4,650,460.58 634,098.07
accounted by equity method
Total 4,650,460.58 634,098.07
Other notes:
69．Net Gain on Exposure Hedges
Unit: RMB
Item Amount of the current period Amount of the previous period
Other notes:
70. Gain on Changes in Fair Value
Unit: RMB
Sources Amount of the current period Amount of the previous period
Other notes:
71. Credit Impairment Loss
Unit: RMB
Item Amount of the current period Amount of the previous period
Bad debt loss -29,082,610.26 4,623,356.81
Total -29,082,610.26 4,623,356.81
Other notes:
222
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
72. Asset Impairment Loss
Unit: RMB
Item Amount of the current period Amount of the previous period
II. Inventory falling price loss and impairment
23,120.82 -51,185.46
provision for contract performance costs
Total 23,120.82 -51,185.46
Other notes:
73. Asset Disposal Income
Unit: RMB
Sources Amount of the current period Amount of the previous period
Gains on disposal of fixed assets 2,311.70
Others 27.94
74. Non-operating Income
Unit: RMB
Amount of the previous Amount recorded in the current
Item Amount of the current period
period non-recurring profit or loss
Government subsidies 10,000.00 34,500.00 10,000.00
Gains on damage and scrap
9,650.00 2,000.00 9,650.00
of non-current assets
Confiscated income 144,448.18 759,208.33 144,448.18
Payments unable to clear 109,996.00 689,801.09 109,996.00
Others 9,137,317.29 10,212,151.81 9,137,317.29
Total 9,411,411.47 11,697,661.23
Government grants recorded into current profit or loss
Unit: RMB
Whether
influence
Special Same Related to
Distributio Distributio the profits Reporting
Item Nature subsidy or period of assets/relat
n entity n reason or losses of Period
not last year ed income
the year or
not
Subsidies
Related to
Others Subsidies obtained No No 10,000.00 34,500.00
revenue
from the
223
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
state by
undertakin
g the
sustainabili
ty of public
utilities,
the supply
of socially
necessary
products,
or the
function of
price
control
Other notes:
Other non-operating income in the current period mainly comes from the demolition compensation collected by the Company.
75. Non-operating Expense
Unit: RMB
Amount of the previous Amount recorded in the current
Item Amount of the current period
period non-recurring profit or loss
Donation 139,000.01 476,485.29 139,000.01
Losses from damage and
71,820.29 275,730.01 71,820.29
scrap of non-current assets
Litigation expenses 191,457.86 2,396,947.00 191,457.86
Penalty and fine for delaying
195,546.95 237,572.81 195,546.95
payment
Others 5,950,073.77 1,857,594.39 5,950,073.77
Total 6,547,898.88 5,244,329.50
Other notes:
76. Income Tax Expense
(1) List of Income Tax Expense
Unit: RMB
Item Amount of the current period Amount of the previous period
Current income tax expense 656,337,068.59 588,275,917.87
Deferred income tax expense -329,051,682.30 -285,506,835.29
224
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Total 327,285,386.29 302,769,082.58
(2) Adjustment Process of Accounting Profit and Income Tax Expense
Unit: RMB
Item Amount of the current period
Profit before taxation 1,314,044,087.34
Current income tax expense accounted at statutory/applicable
328,511,021.84
tax rate
Influence of applying different tax rates by subsidiaries -2,970,131.07
Influence of income tax before adjustment 10,851,209.34
Influence of non-deductible costs, expenses and losses 15,104,525.88
The effect of using deductible losses of deferred income tax
-1,321,178.33
assets that have not been recognized in the previous period
Effect of deductible temporary differences or deductible losses
-24,957,044.98
on deferred income tax assets not recognized in the period
Influence of unrecognized deductible temporary differences
1,244,418.33
and deductible losses
Additional deduction of technological development expense -485,489.98
Changes in the balance of deferred income tax assets/liabilities
-13,123.07
at the beginning of the period due to adjustment of tax rate
Income tax expenses 327,285,386.29
Other notes:
77. Other Comprehensive Income
Refer to Note VII-57 for details.
78. Cash Flow Statement
(1) Cash Generated from Other Operating Activities
Unit: RMB
Item Amount of the current period Amount of the previous period
Large intercourse funds received 31,290,902.02 225,792,047.12
Interest income 74,523,492.00 46,807,781.51
Net margins, security deposit and various special
107,374,965.08 83,064,444.34
funds received
Government grants received 24,634,476.35 7,178,526.73
225
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Other small receivables 830,679.93 39,131,506.62
Total 238,654,515.38 401,974,306.32
Notes:
(2) Cash Used in Other Operating Activities
Unit: RMB
Item Amount of the current period Amount of the previous period
Paying administrative expense in cash 50,097,381.77 62,579,627.01
Paying selling expense in cash 62,996,298.93 39,218,369.80
Net payment of utility expense,
miscellaneous expense and incident cost,
57,809,584.74 26,822,888.41
and various collecting payments on
behalf of others
Amount of newly limited funds 373,079,206.86 25,566,015.05
Other small payments 408,215,211.77 36,328,299.98
Total 579,118,477.21 164,949,185.20
Notes:
(3) Cash Generated from Other Investing Activities
Unit: RMB
Item Amount of the current period Amount of the previous period
Notes:
(4) Cash Used in Other Investing Activities
Unit: RMB
Item Amount of the current period Amount of the previous period
Notes:
(5) Cash Generated from Other Financing Activities
Unit: RMB
Item Amount of the current period Amount of the previous period
Notes:
(6) Cash Used in Other Financing Activities
Unit: RMB
226
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Item Amount of the current period Amount of the previous period
Cash paid in the current period for the business
465,807,569.82
combination occurring in the previous period
Payment for lease liabilities 20,052,203.22
Total 20,052,203.22 465,807,569.82
Notes:
79. Supplemental Information for Cash Flow Statement
(1) Supplemental Information for Cash Flow Statement
Unit: RMB
Supplemental information Amount during the Current Period Same period of last year
1. Reconciliation of net profit to net cash
-- --
flows generated from operating activities
Net profit 986,758,701.05 731,337,869.73
Add: Provision for impairment of
29,059,489.44 -4,572,171.35
assets
Depreciation of fixed assets,
oil-gas assets, and productive biological 52,102,862.45 45,342,224.24
assets
Depreciation of right-of-use
13,946,768.72
assets
Amortization of intangible assets 378,099.59 218,320.15
Amortization of long-term
4,939,791.01 3,787,635.83
prepaid expenses
Losses from disposal of fixed -27.94
assets, intangible assets and other -2,311.70
long-lived assets (gains: negative)
Losses from scrap of fixed assets 62,170.29
273,730.01
(gains: negative)
Losses from changes in fair
value (gains: negative)
Finance costs (gains: negative) 78,852,906.52 183,674,281.47
Investment loss (gains: negative) -4,650,460.58 -634,098.07
Decrease in deferred income tax
-329,029,723.89 -292,528,122.77
assets (gains: negative)
Increase in deferred income tax
-21,958.41 -3,558.88
liabilities (“-” means decrease)
227
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Decrease in inventory (gains:
-3,692,274,029.88 -391,011,344.87
negative)
Decrease in accounts receivable
generated from operating activities (gains: -505,270,780.52 150,130,667.50
negative)
Increase in accounts payable
used in operating activities (decrease: 1,551,833,183.57 -40,515,339.17
negative)
Others
Net cash flow from operating
-1,813,313,008.58 385,497,782.12
activities
2. Significant investing and financing
activities without involvement of cash -- --
receipts and payments
Conversion of debt to capital
Convertible corporate bonds matured
within 1 Year
Fixed asset under finance lease
3. Net increase/decrease of cash and cash
-- --
equivalent:
Ending balance of cash 1,798,746,969.35 4,168,154,911.83
Less: Opening balance of cash 4,168,154,911.83 3,285,345,233.47
Plus: Closing balance of cash
equivalents
Less: Opening balance of cash
equivalents
Net increase in cash and cash
-2,369,407,942.48 882,809,678.36
equivalents
(2) Net Cash Paid for Acquisition of Subsidiaries
Unit: RMB
Amount
Cash or cash equivalents paid in the current period for the
14,000,000.00
business combination occurring in the current period
Of which: --
Less: cash and cash equivalents held by subsidiaries on the
9,707,759.32
purchase date
228
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Of which: --
Shenzhen Facility Management Community Technology Co., Ltd. 9,707,759.32
Of which: --
Net cash paid for acquisition of subsidiaries 4,292,240.68
Other notes:
(3) Net Cash Receive from Disposal of the Subsidiaries
Unit: RMB
Amount
Of which: --
Of which: --
Of which: --
Other notes:
(4) Cash and Cash Equivalents
Unit: RMB
Item Ending balance Beginning balance
I. Cash 1,798,746,969.35 4,168,154,911.83
Including: Cash on hand 110,140.62 96,389.26
Bank deposits on demand 1,798,505,465.47 4,167,907,417.88
Other monetary assets on demand 131,363.26 151,104.69
III. Ending balance of cash and cash
1,798,746,969.35 4,168,154,911.83
equivalents
Other notes:
80. Notes to Items of the Statements of Changes in Owners’ Equity
Notes to the name of “Other” of ending balance of the same period of last year adjusted and the amount adjusted:
Not applicable.
81. Assets with Restricted Ownership or Right of Use
Unit: RMB
Item Ending carrying value Reason for restriction
Monetary Assets 373,079,206.86 [Note 1] - [Note 9]
Land use right of Fumin New Village,
542,507,314.43 [Note 10]
Futian District
229
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Total 915,586,521.29 --
Other notes:
[Note 1] In terms of monetary assets with restricted right to use at the period-end, there was a bank guarantee of
RMB366,477,454.26 issued by the Company in 2021 for the supervision of the implementation entity of the urban renewal unit
project Phase II in Bangling Area, Guanlan Street, Longhua District of Shenzhen Rongyao Real Estate Development Co., Ltd., of
which the principal was RMB365,765,440.00 and the interest was RMB712,014.26.
[Note 2] In terms of monetary assets with restricted right to use at the period-end, there was an escrow deposit of
RMB44,690.02 in the catering branch of the subsidiary company Shandong Shenguomao Real Estate Management Co., Ltd.
[Note 3] In terms of monetary assets with restricted right to use at the period-end, there was an advance payment guarantee of
RMB919,255.00 issued by the subsidiary company Shenzhen Facility Management Community Technology Co., Ltd. in December
2021 for the upgrading and reconstruction of the smart park of Shenzhen Bay Science and Technology Ecological Park and the
software platform development contract.
[Note 4] In terms of monetary assets with restricted right to use at the period-end, there was RMB3,000,000.00 in the
subsidiary company Shenzhen Facility Management Community Technology Co., Ltd. blocked by the court due to pre-litigation
preservation for contract disputes.
[Note 5] In terms of monetary assets with restricted right to use at the period-end, there was a loan guarantee of
RMB1,127,757.03 provided as mortgage guarantees for commercial housing purchasers and paid by the Company as a real estate
developer according to real estate business practices. For details, please refer to XII-3.
[Note 6] In terms of monetary assets with restricted right to use at the period-end, there was RMB1,335,873.47 of interest on
unexpired term deposits accrued at the period-end.
[Note 7] In terms of monetary assets with restricted right to use at the period-end, there was interest of RMB43,388.89 on
large-value certificates of deposit (more than one year).
[Note 8] In terms of monetary assets with restricted right to use at the period-end, there was RMB130,780.56 in the account of
the subsidiary company Shenzhen Property Engineering and Construction Supervision Co., Ltd. The account was in a receiving-only
status because the legal person change formalities had not been completed by the period-end.
[Note 9] In terms of monetary assets with restricted right to use at the period-end, there was a restricted fund of RMB7.63 in
the blocked account of the subsidiary company Shenzhen Huazhengpeng Property Management Co., Ltd.
[Note 10] Due to the needs of daily business activities, the Company applied for a loan from Bank of Communications Co., Ltd.
Shenzhen Branch and mortgaged the land use right of Fumin New Village, Futian District. The loan has a duration from 27
November 2020 to 27 November 2023 and applies floating interest rates, with the first execution interest rate being 4.655%.
82. Foreign Currency Monetary Items
(1) Foreign Currency Monetary Items
Unit: RMB
Ending foreign currency Ending balance converted to
Item Exchange rate
balance RMB
Monetary Assets -- -- 53,710,413.75
Of which: USD 120,000.00 6.3757 765,084.00
EUR
HKD 61,217,393.00 0.8176 50,051,340.50
230
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
VND 10,335,675,900.00 0.00028 2,893,989.25
Accounts prepaid 8,338.89 6,817.88
Of which: HKD 8,338.89 0.8176 6,817.88
Other payables 363,636.67 297,309.34
Of which: HKD 363,636.67 0.8176 297,309.34
Accounts Receivable -- --
Of which: USD
EUR
HKD
Long-term borrowings -- --
Of which: USD
EUR
HKD
Other notes:
(2) Notes to Overseas Entities Including: for Significant Oversea Entities, Main Operating Place, Recording
Currency and Selection Basis Shall Be Disclosed; if there Are Changes in Recording Currency, Relevant
Reasons Shall Be Disclosed.
√ Applicable □ Not applicable
Item Main operating Standard Basis for choosing
place currency for
accounting
Shum Yip Properties Development Co., Ltd. Hong Kong HKD Located in HK, settled by HKD
and its subsidiary
Vietnam Shenguomao Property Management Vietnam VND Located in Vietnam, settled by VND
Co., Ltd.
83. Arbitrage
Qualitative and quantitative information of relevant arbitrage instruments, hedged risk in line with the type of arbitrage to disclose:
84. Government Grants
(1) Basic Information on Government Grants
Unit: RMB
231
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Amount recorded in the
Category Amount Listed items
current profit or loss
Award for Contribution to
Economic Growth of 20,000,000.00 Other income 20,000,000.00
Headquarters
Enterprise incentive fund
from the Headquarters of
3,000,000.00 Other income 3,000,000.00
National Development and
Reform Commission
Subsidies for purchase of post 176,278.04 Other income 176,278.04
Training subsidy for the new
apprenticeship system in 170,500.00 Other income 170,500.00
enterprise
Subsidies for pandemic
153,299.43 Other income 153,299.43
prevention
Subsidy for stabilizing
83,161.64 Other income 83,161.64
employment
Other subsidies 330,416.48 Other income 330,416.48
Other subsidies 10,000.00 Non-operating income 10,000.00
Total 23,923,655.59 23,923,655.59
(2) Return of Government Grants
□ Applicable √ Not applicable
Other notes:
85. Other
VIII. Change of Consolidation Scope
1. Business Combination Not under the Same Control
(1) Business Combination Not under the Same Control during the Reporting Period
Unit: RMB
Income of Net profits
Time and Recognitio acquiree of acquiree
Cost of
Name of place of Proportion Way to Purchase n basis of from the from the
gaining the
acquiree gaining of equity gain equity date purchase purchase purchase
equity
equity date date to date to
period-end period-end
232
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Shenzhen
Facility
Manageme
1 Acquisition 1
nt 14,000,000 Transfer of 10,397,919 4,207,546.
September 35.00% & capital September
Communit .00 control .47 24
2021 increase 2021
y
Technolog
y Co., Ltd.
Other notes:
(2) Combination Cost and Goodwill
Unit: RMB
Combination cost 14000000
--Other 14,000,000.00
Total combination costs 14,000,000.00
Less: share in the fair value of identifiable net assets acquired 4,553,152.62
The amount of goodwill/combination cost less than the share in the
9,446,847.38
fair value of identifiable net assets acquired
Note to determination method of the fair value of the combination cost, consideration and changes:
The main formation reason for the large goodwill:
Other notes:
(3) The Identifiable Assets and Liabilities of Acquiree on Purchase Date
Unit: RMB
Fair value on purchase date Carrying value on purchase date
Monetary Assets 9,707,759.32 9,707,759.32
Accounts receivable 6,641,170.69 6,641,170.69
Fixed Assets 112,652.42 98,752.42
Intangible Assets 1,465,493.39 161,193.39
Prepayments 68,916.00 68,916.00
Other Receivables 219,088.29 219,088.29
Other Current Assets 15,199.18 15,199.18
Right-of-use assets 1,738,689.94 1,738,689.94
Accounts payable 1,029,932.47 1,029,932.47
Deferred income tax liabilities 329,550.00
233
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Contract liabilities 1,957,410.31 1,957,410.31
Payroll payable 1,391,401.11 1,391,401.11
Tax and fees payables 41,841.67 41,841.67
Other payables 41,527.12 41,527.12
Non-current liabilities due within one
700,381.73 700,381.73
year
Lease liabilities 1,076,996.53 1,076,996.53
Net assets 13,399,928.29 12,411,278.29
Less: non-controlling interests 8,846,775.67 8,204,153.17
Net assets acquired 4,553,152.62 4,207,125.12
The determination method of the fair value of identifiable assets and liabilities:
Contingent liability of acquiree undertaken in the business combination:
Other notes:
(4) Gains or losses from Re-measurement of Equity Held before the Purchase Date at Fair Value
Whether there is a transaction that through multiple transaction step by step to realize business combination and gaining the control
during the Reporting Period
□ Yes √ No
(5) Notes to Reasonable Consideration or Fair Value of Identifiable Assets and Liabilities of the Acquiree
that Cannot Be Determined on the Acquisition Date or during the Period-end of the Merger
(6) Other Notes
2. Business Combination under the Same Control
(1) Business Combination under the Same Control during the Reporting Period
Unit: RMB
Income Net profits
from the from the Income of Net profits
Recognitio period-begi period-begi the of the
Proportion
Combined Combinati n basis of n to the n to the acquiree acquiree
of the Basis
party on date combinatio combinatio combinatio during the during the
equity
n date n date of n date of period of period of
the the comparison comparison
acquiree acquiree
Other notes:
234
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
(2) Combination Cost
Unit: RMB
Combination cost
Contingent liabilities and changes thereof:
Other notes:
(3) The Carrying Value of Assets and Liabilities of the Combined Party on the Combination Date
Unit: RMB
Combination date Period-end of the last period
Contingent liabilities of the combined party undertaken in the business combination:
Other notes:
3. Counter Purchase
Basic information of trading, the basis of transactions constitutes counter purchase, the retain assets, liabilities of the listed
companies whether constituted a business and its basis, the determination of the combination costs, the amount and calculation of
adjusted rights and interests in accordance with the equity transaction process:
4. Disposal of Subsidiary
Whether there was a single disposal of an investment in a subsidiary that resulted in a loss of control
□ Yes √ No
Whether there was a step-by-step disposal of investment in a subsidiary through multiple transactions and loss of control during the
period
□ Yes √ No
5. Changes in Combination Scope for Other Reasons
Describe other changes in the consolidation scope (e.g., new subsidiaries, liquidation of subsidiaries, etc.) and relevant situations:
Increase in scope of combination
Name of company Way to gain Time and place of gaining Contribution Contribution
equity equity amount proportion
Xiamen Shenguomao Industrial City Newly-establis 29 March 2021 51%
Smart Service Co., Ltd. hed subsidiary
Vietnam Shenguomao Property Newly-establis 1 February 2021 1,293,940.00 100%
Management Co., Ltd. hed subsidiary
Shenzhen SZPRD Yanzihu Development Newly-establis 1 February 2021 10,000,000.00 100%
Co., Ltd. hed subsidiary
Shenzhen Guangming Wuhe Real Estate Newly-establis 9 December 2021 100%
235
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Co., Ltd. hed subsidiary
Dongguan Wuhe Real Estate Co., Ltd. Newly-establis 9 September 2021 20,000,000.00 100%
hed subsidiary
6. Other
IX. Equity in Other Entities
1. Equity in Subsidiary
(1) Subsidiaries
Shareholding
Main Registra
Nature of percentage (%)
Name operatin tion Way of gaining
business Indirectl
g place place Directly
y
Shenzhen Huangcheng Real Estate Co., Shenzhe Shenzhe
Real estate 100.00% Set-up
Ltd. n n
Shenzhen Wuhe Industry Investment Shenzhe Shenzhe
Real estate 100.00% Set-up
Development Co., Ltd. n n
Software and Business
Shenzhen Facility Management Shenzhe Shenzhe information combination not
35.00%
Community Technology Co., Ltd. n n technology under the same
services control
Software and Business
Beijing Facility Home Technology Co., information combination not
Beijing Beijing 17.85%
Ltd. technology under the same
services control
SZPRD Xuzhou Dapeng Real Estate
Xuzhou Xuzhou Real estate 100.00% Set-up
Development Co., Ltd.
Dongguan ITC Changsheng Real Estate Donggu Donggu
Real estate 100.00% Set-up
Development Co., Ltd. an an
SZPRD Yangzhou Real Estate Yangzh Yangzho
Real estate 100.00% Set-up
Development Co., Ltd. ou u
Shenzhen International Trade Center Shenzhe Shenzhe
Real estate 100.00% Set-up
Property Management Co., Ltd. n n
Shenzhen Guomaomei Life Service Co., Shenzhe Shenzhe
Real estate 100.00% Set-up
Ltd. n n
Shandong Shenguomao Real Estate
Jinan Jinan Real estate 100.00% Set-up
Management Co., Ltd.
236
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Chongqing Shenguomao Real Estate Chongqi Chongqi
Real estate 100.00% Set-up
Management Co., Ltd. ng City ng City
Chongqi Chongqi
Chongqing Aobo Elevator Co., Ltd. Service Industry 100.00% Set-up
ng City ng City
Chongqing Tianque Elevator Shenzhe Shenzhe
Service Industry 100.00% Set-up
Technology Co., Ltd. n n
Shenzhen Guoguan Electromechanical Shenzhe Shenzhe
Service Industry 100.00% Set-up
Device Co., Ltd. n n
Shenzhe Shenzhe Accommodation
Shenzhen Guomao Catering Co., Ltd. 100.00% Set-up
n n and catering
Shenzhen Property Engineering and Shenzhe Shenzhe
Service Industry 100.00% Set-up
Construction Supervision Co., Ltd. n n
SZPRD Commercial Operation Co., Shenzhe Shenzhe
Service Industry 100.00% Set-up
Ltd. n n
Zhanjiang Shenzhen Real Estate Zhanjia Zhanjian
Real estate 100.00% Set-up
Development Co., Ltd. ng City g City
Shum Yip Properties Development Co., Hong Hong
Real estate 100.00% Set-up
Ltd. Kong Kong
Hong Hong
Wayhang Development Co., Ltd. Real estate 100.00% Set-up
Kong Kong
Hong Hong
Chief Link Properties Co., Ltd. Real estate 70.00% Set-up
Kong Kong
Business
Hong Hong combination not
Syndis Investment Co., Ltd. Real estate 70.00%
Kong Kong under the same
control
Yangzhou Shouxihu Jingyue Property Yangzh Yangzho
Real estate 51.00% Set-up
Development Co., Ltd. ou u
Shandong International Trade Center
Jinan Jinan Real estate 100.00% Set-up
Hotel Management Co., Ltd.
Shenzhen Shenshan Special
Shenzhe Shenzhe
Cooperation Zone Guomao Property Real estate 65.00% Set-up
n n
Development Co., Ltd.
Shenzhen Guomao Tongle Property Shenzhe Shenzhe
Real estate 51.00% Set-up
Management Co., Ltd. n n
Business
Shenzhen Rongyao Real Estate Shenzhe Shenzhe combination not
Real estate 69.00%
Development Co., Ltd. n n under the same
control
237
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Business
Shenzhen ITC Technology Park Service Shenzhe Shenzhe combination
Real estate 100.00%
Co., Ltd. n n under the same
control
Business
Shenzhen Julian Human Resources Shenzhe Shenzhe combination
Service Industry 100.00%
Development Co., Ltd. n n under the same
control
Business
Shenzhen Huazhengpeng Property Shenzhe Shenzhe combination
Real estate 100.00%
Management Development Co., Ltd. n n under the same
control
Business
Shenzhe Shenzhe combination
SZPRD Urban Renewal Co., Ltd. Real estate 100.00%
n n under the same
control
Business
Shenzhen Penghongyuan Industrial Shenzhe Shenzhe Accommodation combination
100.00%
Development Co., Ltd. n n and catering under the same
control
Business
Shenzhen Jinhailian Property Shenzhe Shenzhe combination
Real estate 100.00%
Management Co., Ltd. n n under the same
control
Business
Shenzhe Shenzhe Sanitation and combination
Shenzhen Social Welfare Co., Ltd. 100.00%
n n social work under the same
control
Business
Shenzhen Fuyuanmin Property
Shenzhe Shenzhe combination
Management Limited Liability Real estate 100.00%
n n under the same
Company
control
Business
Shenzhen Meilong Industrial Shenzhe Shenzhe combination
Service Industry 100.00%
Development Co., Ltd. n n under the same
control
Business
Public facilities
Shenzhen Guomao Shenlv Garden Co., Shenzhe Shenzhe combination
management 90.00%
Ltd. n n under the same
services
control
Shenzhen Jiayuan Property Shenzhe Shenzhe Real estate 54.00% Business
238
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Management Co., Ltd. n n combination
under the same
control
Business
Shenzhen Helinhua Construction Shenzhe Shenzhe combination
Real estate 90.00%
Management Co., Ltd. n n under the same
control
Business
Shenzhen Zhongtongda House Xiushan Shenzhe Shenzhe Construction combination
90.00%
Service Co., Ltd. n n industry under the same
control
Business
Shenzhe Shenzhe combination
Shenzhen Kangping Industrial Co., Ltd. Retail trade 90.00%
n n under the same
control
Business
Shenzhe Shenzhe Manufacturing combination
Shenzhen Sports Service Co., Ltd. 100.00%
n n industry under the same
control
Business
Shenzhen Teacher’s Home Training Co., Shenzhe Shenzhe combination
Retail trade 100.00%
Ltd. n n under the same
control
Business
Shenzhe Shenzhe combination
Shenzhen Education Industrial Co., Ltd. Service Industry 100.00%
n n under the same
control
Business
Shenzhe Shenzhe combination
Shenzhen Yufa Industrial Co., Ltd. Retail trade 80.95%
n n under the same
control
SZPRD Fuyuantai Development Co., Shenzhe Shenzhe
Real estate 100.00% Set-up
Ltd. n n
Repair services of
motor vehicles,
Xiamen Shenguomao Industrial City Shenzhe Shenzhe
electronic 51.00% Set-up
Smart Service Co., Ltd. n n
products and
daily-use products
Vietnam Shenguomao Property Shenzhe Shenzhe
Service Industry 100.00% Set-up
Management Co., Ltd. n n
Shenzhen SZPRD Yanzihu Shenzhe Shenzhe Real estate 100.00% Set-up
239
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Development Co., Ltd. n n
Shenzhen Guangming Wuhe Real Estate Shenzhe Shenzhe
Real estate 100.00% Set-up
Co., Ltd. n n
Shenzhe Shenzhe
Dongguan Wuhe Real Estate Co., Ltd. Real estate 100.00% Set-up
n n
Notes to holding proportion in subsidiary different from voting proportion:
In May 2021, Shenzhen Wuhe Industry Investment Development Co., Ltd. (hereinafter referred to as "Wuhe Company"), a
subsidiary of the Company, acquired 35% of the equity of Shenzhen Facility Management Community Technology Co., Ltd.
(hereinafter referred to as "FMC") through acquisition of equity and directional capital increase. Meanwhile, according to the
agreement of the cooperation framework on equity acquisition signed by Wuhe Company and the original shareholders, 16% of the
voting rights that the original shareholders hold or actually control in the equity of FMC shall be unconditionally granted to Wuhe
Company to exercise after the transaction date. There are no prerequisites for the granting of voting rights, and the term of the voting
rights is not stipulated in the contract.
Basis of holding half or less voting rights but still controlling the investee and holding more than half of the voting rights but not
controlling the investee:
Significant structural entities and controlling basis in the scope of combination:
Basis of determining whether the Company is the agent or the principal:
Other notes:
(2) Significant Non-wholly-owned Subsidiary
Unit: RMB
Shareholding The profit or loss Declaring dividends Balance of
proportion of attributable to the distributed to non-controlling
Name
non-controlling non-controlling non-controlling interests at the
interests interests interests period-end
Shenzhen Rongyao
Real Estate 31.00% -21,415,719.66 17,492,106.42
Development Co., Ltd.
Yangzhou Shouxihu
Jingyue Property 49.00% 711,266.86 5,529,648.80
Development Co., Ltd.
Shenzhen Guomao
Shenlv Garden Co., 10.00% 193,064.91 4,821,207.97
Ltd.
Holding proportion of non-controlling interests in subsidiary different from voting proportion:
Other notes:
(3) The Main Financial Information of Significant Not Wholly-owned Subsidiary
Unit: RMB
240
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Ending balance Beginning balance
Curren Non-c Curren Non-c
Non-c Total Non-c Total
Name Curren Total t urrent Curren Total t urrent
urrent liabilit urrent liabiliti
t assets assets liabiliti liabilit t assets assets liabiliti liabiliti
assets ies assets es
es ies es es
Shenz
hen
Rongy
ao
4,650, 137,57 4,788, 1,730, 3,001, 4,732, 4,265, 114,18 4,379, 224,32 4,029, 4,253,
Real
977,97 6,247. 554,22 779,98 348,08 128,07 252,71 2,786. 435,50 6,385. 600,00 926,38
Estate
6.49 00 3.49 3.83 9.90 3.73 5.28 33 1.61 22 0.00 5.22
Develo
pment
Co.,
Ltd.
Yangz
hou
Shouxi
hu
Jingyu
18,565 19,671 15,397 16,275
e 1,106, 8,205, 181,23 8,386, 877,95 6,442, 6,442,
,365.9 ,535.8 ,601.2 ,560.0
Proper 169.89 301.82 6.45 538.27 8.80 127.49 127.49
4 3 2 2
ty
Develo
pment
Co.,
Ltd.
Shenz
hen
Guom
31,903 32,681 28,564 28,564 31,973 33,363 30,657 30,657
ao 778,23 1,389,
,583.8 ,816.7 ,967.8 ,967.8 ,980.1 ,528.4 ,770.9 ,770.9
Shenlv 2.97 548.34
2 9 7 7 1 5 4 4
Garde
n Co.,
Ltd.
Unit: RMB
Amount of the current period Amount of the previous period
Total Cash flows Total Cash flows
Name comprehen from comprehen from
Revenue Net profit Revenue Net profit
sive operating sive operating
income activities income activities
Shenzhen -69,082,96 -69,082,96 -219,358,7 -217,986,0 -217,986,0 -428,153,6
241
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Rongyao 6.63 6.63 60.50 90.23 90.23 32.73
Real Estate
Developme
nt Co., Ltd.
Yangzhou
Shouxihu
Jingyue 34,266,561 1,451,565. 1,451,565. 2,330,187. 27,454,217 1,075,200. 1,075,200. 3,369,179.
Property .14 03 03 13 .70 88 88 34
Developme
nt Co., Ltd.
Shenzhen
Guomao
16,814,920 1,411,091. 1,411,091.4 -181,629.0 13,548,955 -909,323.5 -909,323.5 1,413,554.
Shenlv
.86 41 1 0 .86 4 4 68
Garden
Co., Ltd.
Other notes:
(4) Significant Restrictions on Using the Assets and Liquidating the Liabilities of the Company
(5) Financial Support or Other Supports Provided to Structural Entities Incorporated into the Scope of
Consolidated Financial Statements
Other notes:
2. The Transaction of the Company with Its Owner’s Equity Share Changed but Still Controlling the
Subsidiary
(1) Note to the Owner’s Equity Share Changed in Subsidiary
(2) The Transaction’s Influence on the Equity of Non-controlling Interests and the Owner's Equity
Attributable to the Company as the Parent
Unit: RMB
Other notes:
3. Equity in Joint Ventures or Associated Enterprises
(1) Significant Joint Ventures or Associated Enterprises
Shareholding percentage (%) Accounting
Main operating Registration Nature of
Name treatment of the
place place business Directly Indirectly
investment to
242
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
joint venture or
associated
enterprise
Shenzhen Real
Estate Jifa Warehouse
Shenzhen Shenzhen 50.00% Equity method
Warehousing service
Co., Ltd.
Shenzhen
Tian’an
International
Mansion
Property Property
Shenzhen Shenzhen 50.00% Equity method
Administration management
Co., Ltd.
(Tian’an
Company)
Notes to holding proportion of joint venture or associated enterprise different from voting proportion:
Basis of holding less than 20% of the voting rights but has a significant impact or holding 20% or more voting rights but does not
have a significant impact:
(2) Main Financial Information of Significant Joint Ventures
Unit: RMB
Closing balance/amount of the current period Opening balance/amount of the previous period
Shenzhen Tian’an Shenzhen Tian’an
International Mansion International Mansion
Shenzhen Jifa Property Shenzhen Jifa Property
Warehouse Co., Ltd. Administration Co., Warehouse Co., Ltd. Administration Co.,
Ltd. (Tian’an Ltd. (Tian’an
Company) Company)
Current assets 77,995,898.01 57,331,775.19 5,408,927.72 56,100,422.58
Of which: Cash and
9,519,579.27 36,510,372.60 5,408,401.36 35,387,944.60
cash equivalents
Non-current assets 12,036,801.70 64,052.07 75,370,802.09 49,234.16
Total assets 90,032,699.71 57,395,827.26 80,779,729.81 56,149,656.74
Current liabilities 2,999,369.48 27,437,899.29 2,671,881.97 26,716,095.36
Non-current liabilities 16,269,895.46 16,120,967.63
Total liabilities 2,999,369.48 43,707,794.75 2,671,881.97 42,837,062.99
Equity attributable to 87,033,330.23 13,688,032.51 78,107,847.84 13,312,593.75
243
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
shareholders of the
Company as the parent
Net assets shares
calculated at the
43,516,665.12 6,844,016.26 39,053,923.92 6,656,296.87
shareholding
proportion
Carrying value of
equity investment to 43,516,665.12 6,844,016.26 39,053,923.92 6,656,296.87
joint ventures
Revenue 17,198,255.16 17,937,089.04 6,298,927.01 18,268,841.02
Financial expenses -18,157.77 -524,285.04 -7,369.67 -567,932.96
Income tax expenses 2,981,339.69 128,978.80 184,895.52 130,585.02
Net profit 8,925,482.39 375,438.76 878,304.52 389,891.64
Total comprehensive
8,925,482.39 375,438.76 878,304.52 389,891.64
income
Other notes:
(3) Main Financial Information of Significant Associated Enterprise
Unit: RMB
Closing balance/amount of the current Opening balance/amount of the previous
period period
Other notes:
(4) Summary Financial Information of Insignificant Joint Ventures or Associated Enterprises
Unit: RMB
Closing balance/amount of the current Opening balance/amount of the previous
period period
Joint venture: -- --
Sum calculated by shareholding ratio of
-- --
each item
Associated enterprises: -- --
Sum calculated by shareholding ratio of
-- --
each item
Other notes:
244
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
(5) Note to the Significant Restrictions on the Ability of Joint Ventures or Associated Enterprises to
Transfer Funds to the Company
(6) The Excess Loss of Joint Ventures or Associated Enterprises
Unit: RMB
The cumulative recognized The derecognized losses (or The accumulative
Name losses in previous the share of net profit) in unrecognized losses in
accumulatively derecognized Reporting Period Reporting Period
Other notes:
(7) The Unrecognized Commitment Related to Investment to Joint Ventures
(8) Contingent Liabilities Related to Investment to Joint Ventures or Associated Enterprises
4. Significant Common Operation
Main operating Proportion /Share portion
Name Registration place Nature of business
place Directly Indirectly
Notes to holding proportion or share portion in common operation different from voting proportion:
For common operation as a single entity, basis of classifying as common operation
Other notes:
5. Equity in the Structured Entity Excluded in the Scope of Consolidated Financial Statements
Notes to the structured entity excluded in the scope of consolidated financial statements:
6. Other
X. Risks Associated with Financial Instruments
The Company is engaged in risk management to achieve balance between risks and returns, minimizing the negative effects of
risks on its operation performance and maximizing the interests of its shareholders and other equity investors. Based on that risk
management goal, the fundamental strategy of its risk management is to identify and analyze various risks facing the Company,
establish an appropriate risk bottom line, carry out risk management and monitor various risks in a timely and reliable manner to
control them within a restricted scope.
The Company faces various risks related to financial instruments in its routine activities, mainly including credit risk, liquidity
risk market risk. The management has reviewed and approved the policies of managing those risks, which are summarized as
follows.
i. Credit risk
Credit risk means the risk of financial losses incurred to the other party when one party of a financial instrument is unable to
fulfill its obligations.
245
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
1. Credit Risk Management Practice
(1) Credit Risk Evaluation Method
On each balance sheet date, the Company shall evaluate whether the credit risk of relevant financial instruments has increased
significantly since the initial recognition. After determining whether the credit risk has increased significantly since the initial
recognition, the Company shall consider obtaining reasonable and reliable information without paying unnecessary extra costs or
efforts, including qualitative and quantitative analysis based on historical data, external credit risk rating and forward-looking
information. On the basis of the single financial instrument or combination of financial instruments with similar credit risk
characteristics, the Company compares the risk of default of financial instruments on the balance sheet date with the risk of default
on the initial recognition date to determine the change of default risk of financial instruments during their expected duration.
When one or more of the following quantitative and qualitative criteria prevails, the Company shall believe the credit risk of
financial instruments has increased significantly:
1) For the quantitative standard, it can be mainly analyzed from the probability of default for the remaining duration on the
balance sheet date rises by more than a certain proportion compared with the initial confirmation.
2) For the qualitative standard, it can be mainly analyzed from the major adverse changes in the debtor's operation or financial
situation, changes in existing or expected technology, market, economy or legal environment which shall have major adverse impacts
on the debtor’s repayment ability of the Company, etc.
3) The upper limit is that the debtor’s contract payment (including principal and interest) is overdue for more than 90 days.
(2) Definition of Default and Credit Impairment-Assets
When a financial instrument meets one or more of the following conditions, the Company shall define the financial asset as
having defaulted, and its criteria are consistent with the definition of having incurred credit impairment:
1) Quantitative Standard
The debtor fails to make the payment after the contract payment date for more than 90 days;
2) Qualitative criteria
a) The debtor has major financial difficulties;
b) The debtor violates the binding provisions on the debtor in the contract;
c) The debtor is likely to go bankrupt or carry out other financial restructurings;
d) The creditor shall give the debtor concessions that will not be made in any other circumstances due to the economic or
contractual considerations related to the debtor's financial difficulties.
2. Measurement of Expected Credit Loss
The key parameters for measuring expected credit loss included default probability, loss given default and exposure at default.
The Company considers the quantitative analysis and forward-looking information of historical statistical data (such as counterparty
rating, guarantee method, collateral type, repayment method, etc.) to establish exposure models of default probability, loss given
default, and default risk.
3. Refer to Note VI-1, VI-2, VI-9 for details of the reconciliation statements of beginning balance and ending balance of
financial instrument loss provision.
4. Credit Risk Exposure and Credit Risk Concentration
The Company’s credit risk mainly comes from monetary assets and accounts receivable. To control the aforementioned relevant
risks, the Company has adopted the following measures.
(1) Monetary assets
The Company places its monetary assets with financial institutions of high credit ratings. Thus, its credit risk is low.
246
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
(2) Accounts receivable
The Company conducts credit assessments on the customers trading in the mode of credit on a regular basis. Based on the
credit assessment result, the Company chooses to trade with recognized customers with good credit and monitor the balance of the
accounts receivable from them to ensure that the Company will not face any significant bad debt risk.
Due to the Company merely trades with the authorized third party with good credit, the guarantee is not required. Credit risk
concentration is managed in accordance with the customers. As at 31 December 2021, there were certain credit concentration risks in
the Company, and 57.71% of the accounts receivable of the Company (55.41% on 31 December 2020) came from the top 5
customers by balance. The Company hasn’t held any guarantee or other credit enhancement for balance of accounts receivable.
The maximum credit risk exposure the Company undertook shall be the carrying value of each financial asset on balance sheet.
ii. Liquidity risk
Liquidity risk refers to the risk of fund shortage occurring when the Company fulfills the settlement obligation in the mode of
cash delivery or other financial assets. Liquidity risk may originate from the failure to sell financial assets at fair value as soon as
possible; or from the other party’s failure to pay off its contractual debts; or from the earlier maturity of debts; or from the failure to
generate the expected cash flow.
To control the risk, the Company comprehensively adopts bank loans as financing approach, appropriately combines long-term
and short-term financing modes and optimizes the financing structure to maintain the balance between financing sustainability and
flexibility. The Company has obtained the line of credit from a number of commercial banks to satisfy its operation fund needs and
capital expenditure.
Financial liabilities classified by remaining maturity
Item Ending balance
Carrying value Undiscounted Within 1 year 1-3 years Over 3 years
contract amount
Banking 3,524,500,000.00 4,061,471,066.60 181,841,910.20 3,473,322,700.29 406,306,456.11
borrowings
Accounts payable 337,126,528.68 337,126,528.68 337,126,528.68
Other payables 959,398,886.29 959,398,886.29 947,196,210.25 12,202,676.04
Current portion of 68,984,050.47 68,984,050.47 68,984,050.47
other non-current
liabilities
Total 4,890,009,465.44 5,426,980,532.04 1,535,148,699.60 3,473,322,700.29 418,509,132.15
(Continued)
Item Ending balance
Carrying value Undiscounted Within 1 year 1-3 years Over 3 years
contract amount
Banking 3,587,800,000.00 4,314,545,187.20 184,013,456.59 499,101,299.39 3,631,430,431.22
borrowings
Accounts payable 468,269,685.65 468,269,685.65 468,269,685.65
Other payables 847,142,613.09 847,142,613.09 834,939,937.05 12,202,676.04
Current portion of 36,722,824.88 36,722,824.88 36,722,824.88
247
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
other non-current
liabilities
Total 4,939,935,123.62 5,666,680,310.82 1,523,945,904.17 499,101,299.39 3,643,633,107.26
iii. Market risk
Market risk refers to the risk of fluctuations in the fair value or future cash flows of financial instruments arising from changes
in market prices. Market risk mainly includes interest rate risk and foreign exchange risk.
1. Interest rate risk
Interest rate risk refers to the risk of fluctuations in the fair value or future cash flows of financial instruments arising from
changes in market interest rates. Interest-bearing financial instruments with fixed interest rates may bring the fair value interest rate
risk to the Company, while those with floating interest rate may bring the cash flow interest rate risk to the Company. The Company
will determine the proportion between the financial instruments with fixed interest rate and those with floating interest rate in
combination with market environment, and maintain an appropriate portfolio of financial instruments through regular review and
monitoring. The interest rate risk of cash flows facing the Company is mainly related to the bank loans calculated by floating interest
rate of the Company.
As at 31 December 2021, under the assumption of other fixed variables with 50 basis points changed in interest rate, the bank
loan of RMB3,587,800,000.00 (RMB3,618,800,000.00 on 31 December 2020) calculated at floating rate would not result in
significant influence on total profit and shareholders’ equity of the Company.
2. Foreign exchange risk
Foreign exchange risk refers to the risk that may lead to the changes of fair value of financial instruments or future cash flows
due to fluctuation in exchange rate. The risk of changes of exchange rate facing the Company is mainly related to foreign currency
monetary assets and liabilities of the Company. The Company operates in mainland China, and the main activities are recorded by
RMB. Thus, the foreign exchange market risk undertaken is insignificant for the Company.
XI. Disclosure of Fair Value
1. Ending Fair Value of Assets and Liabilities at Fair Value
Unit: RMB
Ending fair value
Fair value Fair value Fair value
Item
measurement items at measurement items at measurement items at Total
level 1 level 2 level 3
I. Consistent fair value
-- -- -- --
measurement
(III) Other equity
1,002,551.95 1,002,551.95
instrument investment
The total amount of
assets consistently 1,002,551.95 1,002,551.95
measured at fair value
II. Inconsistent fair -- -- -- --
248
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
value measurement
2. Basis for determining the market price of continuous and non-continuous Level 1 fair value
measurement items
Other equity instruments held by the Company belong to stocks of listed company, of which the closing price of stock exchange
on December 31, 2021 shall be regarded as the fair value.
3. Continuous and non-continuous Level 2 fair value measurement items, valuation techniques used, and
the qualitative and quantitative information of important parameters
4. Continuous and non-continuous Level 3 fair value measurement items, valuation techniques used, and
the qualitative and quantitative information of important parameters
5. Continuous and non-continuous Level 3 fair value measurement items, information on the adjustment
between the opening and closing carrying value, and sensitivity analysis of unobservable parameters
6. Explain the Reason for Conversion and the Governing Policy when the Conversion Happens if
Conversion Happens among Consistent Fair Value Measurement Items at Different Levels
7. Changes in the Valuation Technique in the Current Period and the Reason for Such Changes
8. The fair value of financial assets and financial liabilities not measured at fair value
9. Others
XII. Related Party and Related-party Transactions
1. Information Related to the Company as the Parent of the Company
Proportion of
Proportion of
voting rights
share held by the
owned by the
Name Registration place Nature of business Registered capital Company as the
Company as the
parent against the
parent against the
Company (%)
Company (%)
Limited liability
Shenzhen
company RMB28,009
Investment Shenzhen 56.96% 56.96%
(solely-owned by million
Holdings Co., Ltd.
the state)
Notes: information on the Company as the parent
(1) The parent company of the Company is Shenzhen Investment Holdings Co., Ltd. (hereinafter referred to as "SIHC"), a
newly-established and organized state-owned capital investment company based on the original three state-owned assets management
companies in October 2004, and its main function is to manage the partial municipal state-owned companies according to the
249
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
authorization of Municipal SASAC. As a government department, Shenzhen State-owned Assets Supervision and Administration
Bureau manages Shenzhen Investment Holdings Co., Ltd. on behalf of People’s Government of Shenzhen Municipality.
(2) During the Reporting Period, SIHC, the controlling shareholder of the Company, transferred 38,037,890 common shares of
the Company in unlimited circulation (representing 6.382% of the total share capital of the Company) held by SIHC to Shenzhen
State-owned Equity Management Co., Ltd. for free to replenish the social security funds. Shenzhen State-owned Equity Management
Co., Ltd. is a newly-established wholly-owned subsidiary of SIHC to manage the transferred state-owned equity in a special account.
After the registration of the free transfer, SIHC held 301,414,637 shares of the Company, accounting for 50.575% of the total share
capital of the Company, and Shenzhen State-owned Equity Management Co., Ltd. held 38,037,890 shares of the Company,
accounting for 6.382% of the total share capital of the Company.
The final controller of the Company is Shenzhen State-owned Assets Supervision and Administration Committee of Shenzhen
Government.
Other notes:
2. Subsidiaries of the Company
Refer to Note IX-1.
3. Information on the Joint Ventures and Associated Enterprises of the Company
Refer to Note IX-3.
Information on other joint venture or associated enterprise of occurring related-party transactions with the Company in Reporting
Period, or forming balance due to related-party transactions made in previous period:
Name Relationship with the Company
Other notes:
4. Information on Other Related Parties
Name Relationship with the Company
Wholly-owned subsidiary of the Company as the parent of the
Shenzhen Bay Technology Development Co., Ltd.
Company
Wholly-owned subsidiary of Shenzhen Bay Technology
Shenzhen Hi-tech Zone Development Construction Co., Ltd.
Development Co., Ltd.
The Company as the parent of Xinhai Rongyao of subsidiary
Shenzhen Xinhai Holding Co., Ltd.
Rongyao Real Estate by non-controlling interests
Shenzhen Xinhai Rongyao Real Estate Development Co., Ltd. Subsidiary Rongyao Real Estate by non-controlling interests
Shenzhen Real Estate Jifa Warehousing Co., Ltd. Joint venture of the Company
Shenzhen Tian’an International Mansion Property
Joint venture of the Company
Administration Co., Ltd. (Tian’an Company)
Shenzhen Wufang Ceramics Industrial Co., Ltd. Associated enterprise of the Company
Hebei Shenbao Investment Development Co., Ltd. Parent company's grandson company
250
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Guosen Securities Co., Ltd. Subsidiary of the Company as the parent of the Company
Wholly-owned subsidiary of the Company as the parent of the
Shenzhen Shenyue United Investment Co., Ltd.
Company
Shenzhen Bay Wanyi Hotel Branch of Shenzhen Wuzhou
Wholly-owned parent company's grandson company
Hotel Management Co., Ltd.
Shenzhen Bay Wanli Hotel Branch of Shenzhen Wuzhou Hotel
Wholly-owned parent company's grandson company
Management Co., Ltd.
Shenzhen Infinova Limited Subsidiary of the Company as the parent of the Company
Shenzhen General Institute of Architectural Design and Wholly-owned subsidiary of the Company as the parent of the
Research Co., Ltd. Company
Shenzhen Bay Area Urban Construction and Development Co., Wholly-owned subsidiary of the Company as the parent of the
Ltd. Company
Shenzhen Convention & Exhibition Center Management Co., Wholly-owned subsidiary of the Company as the parent of the
Ltd. Company
Shenzhen Shenzhen Hong Kong Science and Technology
Subsidiary of the Company as the parent of the Company
Innovation Cooperation Zone Development Co., Ltd.
Shenzhen Bay (Baoding) Innovation Development Co., Ltd. Wholly-owned parent company's grandson company
Shenzhen Tianjun Industrial Co., Ltd. Parent company's grandson company
Shenzhen Total Logistics Service Co., Ltd. Parent company's grandson company
Wholly-owned subsidiary of the Company as the parent of the
Shenzhen Shenfubao (Group) Co., Ltd.
Company
GUOREN PROPERTY AND CASUALTY INSURANCE CO.,
Subsidiary of the Company as the parent of the Company
LTD.
Other notes:
5. List of Related-party Transactions
(1) Information on Acquisition of Goods and Reception of Labor Service
Information on acquisition of goods and reception of labor service
Unit: RMB
Amount of the The approval trade Whether exceed Amount of the
Related party Content
current period credit trade credit or not previous period
Shenzhen Bay
Technology Management
79,121,747.44 80,000,000.00 No 64,609,934.18
Development Co., service fee
Ltd.
Shenzhen General Project
4,160,439.35 3,326,087.00
Institute of architectural
251
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Architectural design plan
Design and
Research Co., Ltd.
Intelligent
Shenzhen Infinova
engineering 816,303.96
Limited
expense
GUOREN
PROPERTY AND
CASUALTY Insurance 1,621,506.37
INSURANCE CO.,
LTD.
Information of sales of goods and provision of labor service
Unit: RMB
Amount of the current Amount of the previous
Related party Content
period period
Shenzhen Hi-tech Zone Development
Property service fee 1,592,696.30 1,432,390.32
Construction Co., Ltd.
Shenzhen Bay Technology Development
Property service fee 56,337,675.04 47,871,320.92
Co., Ltd.
Shenzhen Bay Technology Development
Consultant service fee 541,666.98
Co., Ltd.
Hebei Shenbao Investment Development
Property service fee 6,826,046.08 5,688,129.37
Co., Ltd.
Shenzhen Bay Area Urban Construction
Property service fee 2,457,527.74 2,072,632.08
and Development Co., Ltd.
Shenzhen Investment Holdings Co., Ltd. Consultant service fee 1,980,443.98 70,679.25
Guosen Securities Co., Ltd. Property service fee 1,188,060.37
Property management
Shenzhen Infinova Limited 286,508.61
fees
Shenzhen Shenyue United Investment Co.,
Property service fee 4,426,434.93
Ltd.
Shenzhen Shenzhen Hong Kong Science
and Technology Innovation Cooperation Property service fee 431,567.61
Zone Development Co., Ltd.
Shenzhen Bay (Baoding) Innovation
Property service fee 202,133.32
Development Co., Ltd.
Shenzhen Convention & Exhibition Center
Property service fee 1,778,221.08
Management Co., Ltd.
Shenzhen Total Logistics Service Co., Ltd. Property service fee 669,875.70
252
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Notes on acquisition of goods and reception of labor service
(2) Information on Related-party Trusteeship/Contract
Lists of trusteeship/contract:
Unit: RMB
Income
Name of the Name of the
recognized in
entruster/contrac entrustee/ Type Start date Due date Pricing basis
this Reporting
tee contractor
Period
Shenzhen ShenZhen
Shentou Properties &
Investment 6 November 5 November
Property Resources Market pricing 68,272,070.15
Properties 2019 2025
Development Development
Co., Ltd. (Group) Ltd.
Notes:
Lists of entrust/contractee
Unit: RMB
Charge
Name of the Name of the
recognized in
entruster/contra entrustee/ Type Start date Due date Pricing basis
this Reporting
ctee contractor
Period
Notes:
(3) Information on Related-party Lease
The Company was lessor:
Unit: RMB
The lease income confirmed The lease income confirmed
Name of lessee Category of leased assets
in the Reporting Period in the same period of last year
Shenzhen Bay Wanyi Hotel
Branch of Shenzhen Wuzhou Investment Properties 504,175.20
Hotel Management Co., Ltd.
Shenzhen Bay Wanli Hotel
Branch of Shenzhen Wuzhou Investment Properties 616,214.13
Hotel Management Co., Ltd.
The Company was lessee:
Unit: RMB
The lease fee confirmed in The lease fee confirmed in
Name of lessor Category of leased assets
the Reporting Period the same period of last year
253
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Shenzhen Shentou Property
Investment Properties 277,153.80 380,681.16
Development Co., Ltd.
Shenzhen Hi-tech Zone
Development Construction Co., Investment Properties 50,400.00
Ltd.
Notes:
(4) Information on Related-party Guarantee
The Company was guarantor:
Unit: RMB
Execution
Secured party Amount of guarantee Start date End date
accomplished or not
The Company was secured party
Unit: RMB
Execution
Guarantor: Amount of guarantee Start date End date
accomplished or not
Notes:
(5) Information on Inter-bank Lending of Capital of Related Parties
Unit: RMB
Related party Amount Start date Maturity date Note
Borrowing
Lending
(6) Information on Assets Transfer and Debt Restructuring by Related Party
Unit: RMB
Amount of the previous
Related party Content Amount of the current period
period
(7) Information on Remuneration for Key Management Personnel
Unit: RMB
Item Amount of the current period Amount of the previous period
Remuneration for key management
15,959,991.00 16,452,700.40
personnel
254
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
(8) Other Related-party Transactions
6. Accounts Receivable and Payable of Related Party
(1) Accounts Receivable
Unit: RMB
Ending balance Beginning balance
Project Related party
Carrying balance Bad debt provision Carrying balance Bad debt provision
Shenzhen Bay
Accounts Technology
112,281,758.95 3,368,452.77 60,785,587.08 1,823,567.61
Receivable Development Co.,
Ltd.
Hebei Shenbao
Investment
2,221,584.63 66,647.54 1,465,286.24 43,958.59
Development Co.,
Ltd.
Shenzhen Hi-tech
Zone
Development 2,038,315.65 75,908.99 583,120.29 17,493.61
Construction Co.,
Ltd.
Shenzhen
Investment 494,774.12 20,087.62 8,357,589.14 250,727.67
Holdings Co., Ltd.
Shenzhen Shentou
Property
3,618,388.27 108,551.65
Development Co.,
Ltd.
Shenzhen Bay
(Baoding)
Innovation 28,814.40 864.43
Development Co.,
Ltd.
Shenzhen Bay
Area Urban
Construction and 90,000.00 2,700.00
Development Co.,
Ltd.
Shenzhen
1,170,565.00 48,987.95
Convention &
255
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Exhibition Center
Management Co.,
Ltd.
Shenzhen Hong
Kong Science and
Technology
Innovation 101,072.00 3,032.16
Cooperation Zone
Development Co.,
Ltd.
Shenzhen Total
Logistics Service 395,202.42 11,856.07
Co., Ltd.
Total 122,440,475.44 3,707,089.18 71,191,582.75 2,135,747.48
Shenzhen
Prepayments Shenfubao 42,726,200.00
(Group) Co., Ltd.
Total 42,726,200.00
Shenzhen Xinhai
Other Receivables 401,499,990.18 6,044,999.71 401,499,990.18
Holding Co., Ltd.
Shenzhen Xinhai
Rongyao Real
Estate 355,026,166.83 10,650,785.01 330,472,932.33
Development Co.,
Ltd.
Shenzhen Wufang
Ceramics 1,747,264.25 1,747,264.25 1,747,264.25 1,747,264.25
Industrial Co., Ltd.
Shenzhen Bay
Technology
11,809,060.35 419,496.75 931,784.90 27,953.55
Development Co.,
Ltd.
Shenzhen Qianhai
Advanced
8,430,575.27 252,917.26
Information
Service Co., Ltd.
Shenzhen Tianjun
10,000,000.00
Industrial Co., Ltd.
Shenzhen 109,148.44 46,829.92 109,148.44 46,829.92
256
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Investment
Holdings Co., Ltd.
Shenzhen Hi-tech
Zone
Development 20,420.00 612.60 138,689.46 110,951.57
Construction Co.,
Ltd.
Shenzhen Shentou
Property
81,233.00 81,233.00
Development Co.,
Ltd.
Total 788,723,858.32 19,244,138.50 734,899,809.56 1,932,999.29
(2) Accounts Payable
Unit: RMB
Project Related party Closing book balance Beginning carrying amount
Shenzhen Shentou Property
Accounts payable 887,042.50 1,338,025.92
Development Co., Ltd.
Shenzhen Hi-tech Zone
Development Construction 252,198.81
Co., Ltd.
Shenzhen General Institute of
Architectural Design and 1,138,999.82
Research Co., Ltd.
Total 2,278,241.13 1,338,025.92
Shenzhen Shentou Property
Other payables 10,874,467.40 14,781,098.23
Development Co., Ltd.
Shenzhen Bay Technology
90,354,189.38 29,944,314.56
Development Co., Ltd.
Shenzhen Bay Area Urban
Construction and 360,752.18 360,752.18
Development Co., Ltd.
Shenzhen Real Estate Jifa
38,796,665.14 35,796,665.14
Warehousing Co., Ltd.
Shenzhen Tian’an
International Mansion
Property Administration Co., 5,214,345.90 5,214,345.90
Ltd. (Tian’an Company)
257
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Shenzhen Investment
769,277.91
Holdings Co., Ltd.
Shenzhen Infinova Limited 144,219.02
Guosen Securities Co., Ltd. 228,813.86
Shenzhen Bay Wanyi Hotel
Branch of Shenzhen Wuzhou 535,734.00
Hotel Management Co., Ltd.
Shenzhen Bay Wanli Hotel
Branch of Shenzhen Wuzhou 654,786.00
Hotel Management Co., Ltd.
Total 147,933,250.79 86,097,176.01
7. Commitments of Related Party
8. Other
XIII. Stock Payment
1. The overall situation of share-based payments
□ Applicable √ Not applicable
2. Equity-settled share-based payments
□ Applicable √ Not applicable
3. Cash-settled share-based payments
□ Applicable √ Not applicable
4. Modification and termination of share-based payments
5. Others
XIV. Commitments and Contingency
1. Significant Commitments
Significant commitments on balance sheet date
1. Signed large amount contract under performing or to be performed
Item Amount of current period Same period of last year
Large amount contract signed but hasn’t been recognized in financial
statements
258
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
—Large amount contract 136,224,550.92 18,400,472.41
2. Contingency
(1) Significant Contingency on Balance Sheet Date
(1) The action about transferring Jiabin Building contentious matter
In 1993, the Company signed Right of Development Transfer Contract of Jiabin Building with Shenzhen Jiyong Property
Development Co., Ltd. (hereinafter referred to as “Jiyong Company”). Since the contract was not effectively executed, the Company
subsequently filed a series of lawsuits against the parties involved in the project, but the outcome was not favorable to the Company.
Therefore, the Company calculated and withdrew bad-debt provisions for accounts receivable from Jiyong Company in full in past
years for the transfer of Jiabin Building. On 31 October 2018, Shenzhen Intermediate People’s Court made a civil award and ruled
that the Company’s application for the bankruptcy of Jiyong Company would not be accepted. The Company appealed against the
ruling. On 29 April 2019, the Guangdong Provincial Higher People's Court ruled to reject the Company's appeal and maintain the
original ruling. As of the issuance date of the report, there is no new progress in the case.
(2) The contentious matters involved with all renovations, decorations, equipment and facilities in the floors 5-8 of Haiwai
Lianyi Building
In 2008, Shenzhen Hailian Guest House, a subsidiary of the Company, signed the Internal Contract of Hailian Guest House,
House Leasing Contract with Cai Baolin, obtained the use right of the rooms on the floors 5-8 of Haiwai Lianyi Building accordingly
and further established Shenzhen Hailian Hotel Co., Ltd. for business operation of the rooms. For the above-mentioned contracts
were terminated, Cai Baolin brought a civil lawsuit against Shenzhen Hailian Guest House, Shenzhen Jinhailian Property
Management Co., Ltd. (“Jinhailian”) on all of the renovation, decoration, equipment and facilities made and installed in the rooms.
The People’s Court at Luohu District, Shenzhen City issued the civil judgment (2019) Yue 0303 Min Chu 4458 on 26 December
2019 and ordered Jinhailian to accept the renovation, decoration, equipment and facilities remaining on the floors 5-8 of Haiwai
Lianyi Building by the plaintiff Cai Baolin within ten days after the judgment became effective, and Jinhailian should pay the
residual value RMB2,396,947.00 and Cai Baolin had no right to the above assets. This year, Jinhailian paid litigation compensation
of RMB983,897.50 and still needs to pay RMB1,413,049.50 for compensation.
(3) The arbitration case of property contract dispute of Software Park Phase I between the Fourth Owners' Committee of
Shenzhen Nanshan District Software Park (Applicant) and Shenzhen ITC Technology Park Service Co., Ltd. (Respondent 1,
hereinafter referred to as the "ITC Technology Park Company"), plus the High-tech Zone Branch of Shenzhen ITC Technology Park
Service Co., Ltd. (Respondent 2, hereinafter referred to as the "High-tech Zone Branch").
In February and March 2021, the High-tech Zone Branch and the ITC Technology Park Company received arbitration notices
respectively of the case [2021] Shenguozhongshou No. 541 and [2021] Shenguozhongshou No. 1063. The Fourth Owners'
Committee of Shenzhen Nanshan District Software Park applied for the following award: Respondent 1 shall return
RMB9,893,677.82 and fund occupation fee of RMB3,272,665.99 (temporarily calculated from 1 July 2012 to 31 January 2021),
totaling RMB13,166,343.81; respondent 1 shall bear the attorney's fee of RMB30,000.00; respondent 2 shall return
RMB31,077,017.59 and RMB635,929.44 of fund occupation fee (temporarily calculated from 1 July 2020 to 31 January 2021),
totaling RMB30,000.00; respondent 2 shall bear the attorney's fee of RMB30,000.00. The total amount of the above is
RMB45,209,290.84.
The first session of the arbitration has been concluded, and the parties to the arbitration have disputed the number of amounts
involved and have applied for an audit by a third-party auditor. The audit has now been completed and feedback is being sought from
both parties to the dispute, and the final audit report will be issued shortly. As at the issuance date of the Report, the auditors have not
259
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
issued the formal report.
(4) The contentious matters concerning the dispute between Shenzhen Rongyao Real Estate Development Co., Ltd. (plaintiff)
and Shenzhen Herunxiang Trade Co., Ltd. (defendant) over the compensation contract of property demolition and relocation
On 31 December 2019, for the implementation of the urban renewal project of Bangling Area on Guanlan Street in Shenzhen
Longhua District, Shenzhen Rongyao Real Estate Development Co., Ltd. (hereinafter referred to as "Rongyao Real Estate") and
Shenzhen Herunxiang Trade Co., Ltd. (hereinafter referred to as "Herunxiang") signed the Agreement of Relocation Compensation on
the Urban Renewal Project of Bangling Area from Guanlan Office of Shenzhen Longhua District. Up to now, Herunxiang has not
fulfilled the Agreement and cooperated with Rongyao Real Estate in handling the cancellation procedures for the certificate of real
estate ownership of the relocated property, which has seriously damaged the legitimate rights and interests of Rongyao Real Estate.
Therefore, Rongyao Real Estate has filed a lawsuit with the court, and required Herunxiang to cooperate in handling the cancellation
procedures involving the Wanfa Furniture Town located in Guihua Village, Guanlan Street, Longhua District, Shenzhen, which
includes the house property of the 1 and 2/F in Building 1, the 1, 2 and 3/F in Building 2, the 1, 2, 3 and 4/F in Building 3, and
bearing the relevant taxes.
Shenzhen Rongyao Real Estate Development Co., Ltd. has taken property preservation measures against Shenzhen Herunxiang
Trade Co., Ltd.
(Note: According to the Agreement of Relocation Compensation on the Urban Renewal Project of Bangling Area from Guanlan
Office of Shenzhen Longhua District signed by Rongyao Real Estate and Herunxiang, the gross price of the aforementioned relocated
properties is RMB200 million)
(5) The case of execution objection of Shenzhen Rongyao Real Estate Development Co., Ltd.
In handling the case of private loan dispute (involving an amount of about RMB19 million) between the plaintiff Zhou Guohan
and defendants Zhang Zhulin, Chen Saifeng and Shenfat Arts Crafts Rosewood(Shenzhen) Joint Stock Limited Company (hereinafter
referred to as "Shenfat Rosewood"), the Qianhai Court issued the Notice of Property Sequestration ([2021] Yue 0391 Zhibao No.
238-1) on 5 June 2021, in which the Shenfat Rosewood's land and plants located in Tonggudi, Bangling Villager Group, Guihua
Village, Guanlan Street, Bao'an District, Shenzhen (i.e. 192 Guihua Road, Guanlan Street) would be sealed up for three years from
March 12, 2021, together with the rights and interests during the residual useful life of the land and the ownership of the buildings
and appurtenances on the land (the illegal buildings' code are 508-0405-11220-B, 508-0405-11007-B, 508-0405-11013-B,
508-0405-11008-B and 508-0405-11010-B respectively).
On July 16, 2021 (according to the case filing time), Herunxiang filed an execution objection to the Qianhai Court on the
property sequestration. The Qianhai Court, on 30 September 2021, issued the Application for Execution ([2021] Yue 0391 Zhiyi No.
228), rejecting the execution objection of Herunxiang. Herunxiang refused to accept the ruling and filed a lawsuit of the execution
objection with the Qianhai Court on 3 November 2021 (according to the case filing time), which has been accepted by the Qianhai
Court.
Early in September 2021, Rongyao Real Estate formally filed an objection against the sequestration execution with the Qianhai
Court (the case was filed on 13 September). The Qianhai Court issued the Application for Execution ([2021] Yue 0391 Zhiyi No. 289)
on 9 December 2021, ruling to "suspend the execution of property preservation already carried out by the Qianhai Court". Zhou
Guohan refused to accept the ruling and filed a lawsuit of the execution objection with the Qianhai Court on 29 December 2021. The
case will be heard at 14:30 PM on 25 April 2022.
(6) Others
As a real estate developer, the Company provides mortgage loan guarantees and pays loan deposits for commercial housing
purchasers according to the operation practice of the real estate industry. By 31 December 2021, the balance of the deposit not
discharged with guarantee was RMB1,127,757.03, which would be discharged when the mortgage loans are paid off.
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
(2) Explanation shall be given even if there is no significant contingency for the Company to disclose
There was no significant contingency in the Company to disclose.
3. Others
XV. Events after Balance Sheet Date
1. Significant non-adjustment matters
Unit: RMB
Influence number to the
Reason of inability to
Item Contents financial position and
estimate influence number
operating results
2. Distribution of Profit
Unit: RMB
Profit or dividend to be distributed 405,265,782.56
Profit or dividend announced to issue after review and approval 405,265,782.56
3. Sales Return
4. Notes to Other Events after Balance Sheet Date
(I) Distribution of profit after the balance sheet date
On 29 March 2022, the 8th meeting of the 10th Board of Directors of the Company approved the profit distribution plan for
2021 as follows: a cash dividend of RMB6.80 (tax included) for every 10 shares are to be paid to all shareholders on the basis of
595,979,092 shares in total at the end of 2021. The total cash dividends will be RMB405,265,782.56, and the remaining undistributed
profits will be carried forward to the next year. The plan will be implemented after approval by the Shareholders' Meeting.
(II) Matters on winning the bid of the land use right
On 18 February 2022, the Company and Yangzhou Lvfa Real Estate Co., Ltd., by joint bidding, won the state-owned land use
right of Plot No. GZ342 in Pingshan Village, Yangzhou with a price of RMB835,352,910 in the online listing auction of state-owned
construction land use right in Yangzhou.
(III) The wholly-owned subsidiary of the Company acquired 100% equity of Shenzhen Foreign Trade Property Management
Co., Ltd.
On 29 December 2021, the Company convened the Second Extraordinary General Meeting of Shareholders in 2021, and
reviewed and approved the Proposal on the Acquisition of 100% Equity of Shenzhen Foreign Trade Property Management Co., Ltd.
by the Wholly-owned Subsidiary and Related Transactions, in which the transfer consideration is RMB20,898,800.00. China
Shenzhen Foreign Trade (Group) Co., Ltd. (hereinafter referred to as the "Foreign Trade Group") holds 100% equity of Shenzhen
Foreign Trade Property Management Co., Ltd., and Shenzhen Investment Holdings Co., Ltd. is the controlling shareholder of the
Company and the Foreign Trade Group, thus the Foreign Trade Group is a related party of the Company, and the transaction
261
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
constitutes a related transaction according to the Stock Listing Rules of the Shenzhen Stock Exchange. In February 2022, the equity
acquisition completed the registration procedures for relevant industrial and commercial changes, and obtained the Notice of Change
(for Record) approved by Shenzhen Market Supervision Administration.
(IV) The wholly-owned subsidiary of the Company acquired 100% equity of three enterprises owned by Shenzhen Shenfubao
(Group) Co., Ltd.
On 29 December 2021, the Company convened the Second Extraordinary General Meeting of Shareholders in 2021, and
reviewed and approved the Proposal on the Acquisition of 100% Equity of Three Enterprises (Shenzhen Shenfubao Property
Development Co., Ltd., Shenzhen Shenfubao Hydropower Municipal Service Co., Ltd., and Shenzhen Free Trade Zone Security
Service Co., Ltd.) Owned by Shenzhen Shenfubao (Group) Co., Ltd. (hereinafter referred to as "Shenfubao Group") by the
Wholly-owned Subsidiary and Related Transactions, in which the transfer consideration is RMB85,452,400.00. Shenzhen Investment
Holdings Co., Ltd. is the controlling shareholder of the Company and Shenfubao Group, thus Shenfubao Group is a related party of
the Company, and the transaction constitutes related transaction according to the Stock Listing Rules of the Shenzhen Stock Exchange.
In February 2022, the equity acquisition completed the registration procedures for relevant industrial and commercial changes, and
obtained the Notice of Change (for Record) approved by Shenzhen Market Supervision Administration.
(V) The wholly-owned subsidiary of the Company acquired 100% equity of Shenzhen Property Management Co., Ltd.
On 29 December 2021, the Company convened the Second Extraordinary General Meeting of Shareholders in 2021, and
reviewed and approved the Proposal on the Acquisition of 100% Equity of Shenzhen Property Management Co., Ltd. by the
Wholly-owned Subsidiary and Related Transactions, in which the transfer consideration is RMB196,676,700.00. ShenZhen Special
Economic Zone Real Estate & Properties (Group) Co., Ltd. (hereinafter referred to as the "SPG") and Shenzhen SPG Investment Co.,
Ltd. (hereinafter referred to as the "SPG Investment") hold 100% equity of Shenzhen Property Management Co., Ltd. Shenzhen
Investment Holdings Co., Ltd. (hereinafter referred to as the "SIHC") is the controlling shareholder of the Company and the SPG,
and SPG is the controlling shareholder of the SPG Investment, thus the SPG and the SPG Investment are related party of the
Company, and the transaction constitutes related transaction according to the Stock Listing Rules of the Shenzhen Stock Exchange. In
February 2022, the equity acquisition completed the registration procedures for relevant industrial and commercial changes, and
obtained the Notice of Change (for Record) approved by Shenzhen Market Supervision Administration.
(VI) Matters on application for comprehensive credit line and financing line in 2022
On 29 March 2021, the 8th meeting of the 10th Board of Directors of the Company approved the Company's plan to apply for
comprehensive credit line and financing line. With the capital needs for production, business operation and investment expansion in
2022, the Company plans to apply for comprehensive credit line and financing line to bank or other (local) financial institutions by
virtue of its own land use rights, buildings, equipment, inventory, rights to earnings, and pledge of accounts receivable. The total
amount of the above quota will not exceed RMB9.4 billion (including new, extended and renewed loans), which shall be used for
financing businesses including but not limited to immediate fund loans, project loans, fixed asset loans, annexation loans, guarantee,
and financial leasing. The actual credit and financing types, amounts, terms, interest rates and fees are ultimately subjected to the
financing line actually approved by financial institutions and other financing institutions, or subjected to the financing agreements
actually signed.
XVI. Other Significant Events
1. The Accounting Errors Correction in Previous Period
(1) Retrospective Restatement
Unit: RMB
262
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Name of the influenced report
Content Processing program items during comparison Accumulative impact
period
(2) Prospective Application
Reason for adopting prospective
Content Processing program
application
2. Debt Restructuring
3. Assets Replacement
(1) Non-monetary Assets Exchange
(2) Other Assets Replacement
4. Pension Plans
5. Discontinued Operations
Unit: RMB
Profit from
discontinued
operations
Profit before Income tax
Item Revenue Costs Net profit attributable to
taxation expenses
owners of the
Company as
the parent
Other notes:
6. Segment Information
(1) Determination Basis and Accounting Policies of Reportable Segment
In accordance with the internal organization structure, management requirements and internal report system, the Company
identifies the reportable segment based on the business segment, and assesses the operational performance of real estate sales,
property management and catering service. The assets and liabilities sharing with other segments shall be proportionally distributed
among segments by scales.
(2) The Financial Information of Reportable Segment
Unit: RMB
263
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Property Offset among
Item Real estate Leasing business Total
management segment
Revenue 3,131,113,534.70 1,184,591,970.58 176,260,138.43 4,491,965,643.71
Operating cost 432,501,558.96 967,698,196.48 90,687,606.72 1,490,887,362.16
Total assets 12,478,006,632.00 1,392,212,021.31 711,678,498.45 14,581,897,151.76
Total liabilities 8,884,746,662.73 909,055,078.93 257,004,945.52 10,050,806,687.18
(3) If There Was No Reportable Segment, or the Total Amount of Assets and Liabilities of Each Reportable
Segment Could Not Be Reported, Relevant Reasons Shall Be Clearly Stated
(4) Other notes
7. Other Significant Transactions and Events with Influence on Investors’ Decision-making
8. Other
XVII. Notes of Main Items in the Financial Statements of the Company as the Parent
1. Accounts Receivable
(1) Listed by Category
Unit: RMB
Ending balance Beginning balance
Bad debt
Carrying balance Carrying balance Bad debt provision
provision
Category Carryin Carrying
Withdr Withdr
Amoun Proport Amoun awal g value Amoun Proport Amoun awal value
t ion t proport t ion t proport
ion ion
Accounts
receivable
96,702, 97.65 96,702, 100.00 96,702, 96,702, 100.00
withdrawal of Bad 97.25%
269.40 % 269.40 % 269.40 269.40 %
debt provision
separately accrued
Of which:
Accounts
receivable
2,324,7 100,76 2,223,9 2,735,7 111,280 2,624,50
withdrawal of bad 2.35% 4.33% 2.75% 4.07%
35.49 0.83 74.66 81.29 .87 0.42
debt provision of
by group
264
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Of which:
99,027, 100.00 96,803, 97.75 2,223,9 99,438, 100.00 96,813, 2,624,50
Total 97.36%
004.89 % 030.23 % 74.66 050.69 % 550.27 0.42
Bad debt provision separately accrued: 96702269.40
Unit: RMB
Ending balance
Name Bad debt Withdrawal
Carrying balance Withdrawal reason
provision proportion
Shenzhen Jiyong Properties &
Involved in lawsuit and
Resources Development 93,811,328.05 93,811,328.05 100.00%
with no executable property
Company
Shenzhen Tewei Industry Co., Long aging and expected
2,836,561.00 2,836,561.00 100.00%
Ltd. unrecoverable
Luohu District Economic Long aging and expected
54,380.35 54,380.35 100.00%
Development Company unrecoverable
Total 96,702,269.40 96,702,269.40 -- --
Bad debt provision separately accrued:
Unit: RMB
Ending balance
Name
Carrying balance Bad debt provision Withdrawal proportion Withdrawal reason
Withdrawal of bad debt provision by group: RMB100,,760.83
Unit: RMB
Ending balance
Name
Carrying balance Bad debt provision Withdrawal proportion
Portfolio of credit risk
2,324,735.49 100,760.83 4.33%
features
Total 2,324,735.49 100,760.83 --
Notes to the determination basis for the group:
For details, please refer to the financial statement in Section X
Withdrawal of bad debt provision by group: RMB100760.83
Unit: RMB
Ending balance
Name
Carrying balance Bad debt provision Withdrawal proportion
Within 1 year (including 1
2,202,624.45 66,078.73 3.00%
year)
1-2 years (including 2 years) 9,756.09 975.61 10.00%
2-3 years (including 3 years) 112,354.95 33,706.49 30.00%
265
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Total 2,324,735.49 100,760.83 --
Notes to the determination basis for the group:
Withdrawal of bad debt provision by group:
Unit: RMB
Ending balance
Name
Carrying balance Bad debt provision Withdrawal proportion
Notes to the determination basis for the group:
Please refer to the relevant information of disclosure of bad debt provision of other accounts receivable if adopting the general mode
of expected credit loss to withdraw bad debt provision of accounts receivable.
□ Applicable √ Not applicable
Disclosure by aging
Unit: RMB
Aging Carrying balance
Within 1 year (including 1 year) 2,202,624.45
1 to 2 years 9,756.09
2 to 3 years 112,354.95
Over 3 years 96,702,269.40
Over 5 years 96,702,269.40
Total 99,027,004.89
(2) Bad Debt Provision Withdrawal, Reversed or Recovered in the Reporting Period
Withdrawal of bad debt provision:
Unit: RMB
Changes in the Reporting Period
Beginning
Category Reversal or Ending balance
balance Withdrawal Verification Others
recovery
Bad debt
provision
96,702,269.40 96,702,269.40
withdrawn
separately
Bad debt
provision
111,280.87 -10,520.04 100,760.83
withdrawn by
portfolio
Total 96,813,550.27 -10,520.04 96,803,030.23
Of which significant amount of reversed or recovered bad debt provision:
Unit: RMB
266
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Name of entity Amount reversed or recovered Way of recovery
(3) Accounts Receivable Written-off in Current Period
Unit: RMB
Item Amount verified
Of which the verification of significant accounts receivable:
Unit: RMB
Whether occurred
Verification
Reason for because of
Name of entity Nature Amount verified procedures
verification related-party
performed
transactions
Notes to verification of accounts receivable:
(4) Top 5 of the Ending Balance of the Accounts Receivable Collected according to Arrears Party
Unit: RMB
Proportion to total ending balance of Ending balance of
Name of entity Ending balance
accounts receivable bad debt provision
Shenzhen Jiyong Properties &
93,811,328.05 94.74% 93,811,328.05
Resources Development Company
Shenzhen Tewei Industry Co., Ltd. 2,836,561.00 2.86% 2,836,561.00
Shenzhen Feihuang Industrial Co.,
769,919.05 0.78% 23,097.57
Ltd.
Shenzhen Meige Xiazi Catering
542,366.40 0.55% 16,270.99
Management Co., Ltd.
Shenzhen Youcui Catering
232,355.00 0.23% 6,970.65
Management Co., Ltd.
Total 98,192,529.50 99.16% --
(5) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement of
Accounts Receivable
Other notes:
(6) Accounts Receivable Derecognized due to the Transfer of Financial Assets
2. Other Receivables
Unit: RMB
267
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Item Ending balance Beginning balance
Other Receivables 2,412,506,681.28 145,325,697.20
Total 2,412,506,681.28 145,325,697.20
(1) Interest Receivable
1) Category of Interest Receivable
Unit: RMB
Item Ending balance Beginning balance
2) Significant Overdue Interest
Unit: RMB
Whether occurred
Entity Ending balance Overdue time Overdue reason impairment and its
judgment basis
Other notes:
3) Information of Withdrawal of Bad Debt Provision
□ Applicable √ Not applicable
(2) Dividend Receivable
1) Dividend receivable classification
Unit: RMB
Project (or investee) Ending balance Beginning balance
2) Significant Dividends Receivable Aging over 1 Year
Unit: RMB
Whether occurred
Project (or investee) Ending balance Aging Reason impairment and its
judgment basis
3) Information of Withdrawal of Bad Debt Provision
□ Applicable √ Not applicable
Other notes:
268
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
(3) Other Receivables
1) Other Receivables Classified by Account Nature
Unit: RMB
Nature Closing book balance Beginning carrying amount
Guarantee deposit 2,328,581.00 2,201,527.00
Reserve fund
Payment on behalf 19,510.00
External intercourse funds 56,305,486.73 23,305,386.85
Intercourse funds to subsidiary 2,386,210,528.77 151,970,155.85
Total 2,444,844,596.50 177,496,579.70
2) Withdrawal of Bad Debt Provision
Unit: RMB
Stage 1 Stage 2 Stage 3
Expected credit Expected loss in the Expected credit losses for
Bad debt provision Total
loss of the next 12 duration (credit the entire duration (with
months impairment not occurred) credit impairment)
Balance as at 1 January
15,688,940.37 16,481,942.13 32,170,882.50
2021
Balance of 1 January
2021 in the Current —— —— —— ——
Period
Withdrawal of the
32,416.37 32,416.37
Current Period
Reversal of the
134,616.35 134,616.35
Reporting Period
Balance as at 31
15,855,973.09 16,481,942.13 32,337,915.22
December 2021
Changes of carrying amount with significant amount changed of loss provision in the Current Period
□ Applicable √ Not applicable
Disclosure by aging
Unit: RMB
Aging Carrying balance
Within 1 year (including 1 year) 2,412,547,308.07
1 to 2 years 69,800.00
269
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Over 3 years 32,227,488.43
3 to 4 years 50,000.00
4 to 5 years 56,962.82
Over 5 years 32,120,525.61
Total 2,444,844,596.50
3) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
Withdrawal of bad debt provision:
Unit: RMB
Changes in the Reporting Period
Beginning
Category Reversal or Ending balance
balance Withdrawal Verification Others
recovery
Other Receivables 32,170,882.50 32,416.37 134,616.35 32,337,915.22
Total 32,170,882.50 32,416.37 134,616.35 32,337,915.22
Of which the bad debt provision reversed or recovered with significant amount during the Reporting Period:
Unit: RMB
Name of entity Amount reversed or recovered Way of recovery
4) Particulars of the Actual Verification of Other Receivables during the Reporting Period
Unit: RMB
Item Amount verified
Of which the verification of significant other receivables:
Unit: RMB
Whether occurred
Verification
Reason for because of
Name of entity Nature Amount verified procedures
verification related-party
performed
transactions
Notes to the verification of other receivables:
5) Top 5 of the Ending Balance of Other Receivables Collected according to the Arrears Party
Unit: RMB
Ending
Proportion to ending
balance of
Name of entity Nature Ending balance Aging balance of total
bad debt
other receivables%
provision
Dongguan Wuhe Real Intercourse funds to 2,113,760,170.00 Within 1 86.46%
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Estate Co., Ltd. subsidiary year
Shenzhen Huangcheng Real Intercourse funds to Within 1
145,907,073.23 5.97%
Estate Co., Ltd. subsidiary year
Shum Yip Properties Intercourse funds to Over 5
100,646,715.35 4.12% 7,011,384.95
Development Co., Ltd. subsidiary years
SZPRD Xuzhou Dapeng
Intercourse funds to Within 1
Real Estate Development 23,220,516.83 0.95%
subsidiary year
Co., Ltd.
Shanghai Yutong Real External intercourse Over 5
5,676,000.00 0.23% 5,676,000.00
Estate Co., Ltd. funds years
Total -- 2,389,210,475.41 -- 97.72% 12,687,384.95
6) Accounts Receivable Involving Government Subsidies
Unit: RMB
Project of government Estimated recovering
Name of entity Ending balance Ending aging
subsidies time, amount and basis
7) Derecognition of Other Receivables due to the Transfer of Financial Assets
8) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement of
Other Receivables
Other notes:
3. Long-term Equity Investment
Unit: RMB
Ending balance Beginning balance
Item Carrying Impairment Carrying Impairment
Carrying value Carrying value
balance provision balance provision
Investment to 1,127,829,880. 1,059,465,880. 1,093,829,880. 1,025,465,880.
68,364,000.00 68,364,000.00
subsidiaries 39 39 39 39
Investment to
joint ventures
69,344,295.51 18,983,614.14 50,360,681.37 64,693,834.93 18,983,614.14 45,710,220.79
and associated
enterprises
1,197,174,175. 1,109,826,561. 1,158,523,715. 1,071,176,101.
Total 87,347,614.14 87,347,614.14
90 76 32 18
271
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
(1) Investment to Subsidiaries
Unit: RMB
Increase/decrease
Withdra
Ending
Beginning wal of
Ending balance balance of
Investee balance (carrying Additional Investment impairm
Others (carrying value) depreciati
value) investment reduced ent
on reserve
provisio
n
Shenzhen
Huangcheng
35,552,671.93 35,552,671.93
Real Estate Co.,
Ltd.
Shenzhen
Wuhe Industry
Investment 30,950,000.00 14,000,000.00 44,950,000.00
Development
Co., Ltd.
SZPRD
Yangzhou Real
Estate 50,000,000.00 50,000,000.00
Development
Co., Ltd.
Dongguan ITC
Changsheng
Real Estate 20,000,000.00 20,000,000.00
Development
Co., Ltd.
Shenzhen
International
Trade Center
24,704,758.06 170,633,093.17 195,337,851.23
Property
Management
Co., Ltd.
Shenzhen
Property
Engineering
and 3,000,000.00 3,000,000.00
Construction
Supervision
Co., Ltd.
272
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
SZPRD
Commercial
62,821,767.90 687,352.42 63,509,120.32
Operation Co.,
Ltd.
Zhanjiang
Shenzhen Real
2,530,000
Estate 0.00 0.00
.00
Development
Co., Ltd.
Shum Yip
Properties 15,834,00
0.00 0.00
Development 0.00
Co., Ltd.
SZPRD
Xuzhou
Dapeng Real 50,000,00
0.00 0.00
Estate 0.00
Development
Co., Ltd.
Shenzhen
Rongyao Real
Estate 508,000,000.00 508,000,000.00
Development
Co., Ltd.
Shenzhen ITC
Technology 163,553,25
163,553,254.89
Park Service 4.89
Co., Ltd.
SZPRD Urban
7,767,190.7
Renewal Co., 126,883,427.61 119,116,236.91
0
Ltd.
Dongguan
Wuhe Real 20,000,000.00 20,000,000.00
Estate Co., Ltd.
1,025,465,880.3 171,320,44 1,059,465,880.3 68,364,00
Total 205,320,445.59
9 5.59 9 0.00
(2) Investment to Joint Ventures and Associated Enterprises
Unit: RMB
Investee Begin Increase/decrease Ending Ending
273
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
ning Gains balance balance
balanc and Cash (carryin of
Adjust Withdr
e losses bonus g depreci
Additio ment of awal of
(carryi Investm recogni Other or value) ation
nal other impair
ng ent zed equity profits Others reserve
investm compre ment
value) reduced under changes announ
ent hensive provisi
the ced to
income on
equity issue
method
I. Joint ventures
Shenzhe
n Real
Estate 39,05
4,462,7 43,516,
Jifa 3,923.
41.20 665.12
Warehou 92
sing Co.,
Ltd.
Shenzhe
n
Tian’an
Internati
onal
Mansion
6,656,
Property 187,71 6,844,0
296.8
Adminis 9.38 16.25
7
tration
Co., Ltd.
(Tian’an
Compan
y)
45,71
4,650,4 50,360,
Subtotal 0,220.
60.58 681.37
79
II. Associated enterprises
Shenzhe
n
Wufang
18,983,
Ceramic
614.14
s
Industria
l Co.,
274
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
Ltd.
18,983,
Subtotal
614.14
45,71
4,650,4 50,360, 18,983,
Total 0,220.
60.58 681.37 614.14
79
(3) Other Notes
4. Operating Revenue and Cost of Sales
Unit: RMB
Amount of the current period Amount of the previous period
Item
Revenue Cost Revenue Cost
Lucrative business 61,784,858.02 37,251,974.27 57,579,115.68 36,717,719.01
Others 18,744,743.91 1,319,976.00 6,572,253.92 9,031,809.00
Total 80,529,601.93 38,571,950.27 64,151,369.60 45,749,528.01
Relevant information of revenue:
Unit: RMB
Category of contracts Segment 1 Segment 2 Total
Product categories 80,529,601.93 80,529,601.93
Of which:
House leasing business 80,529,601.93 80,529,601.93
Classified by operating
80,529,601.93 80,529,601.93
region
Of which:
Shenzhen 80,529,601.93 80,529,601.93
Of which:
Of which:
Of which:
Of which:
Of which:
Total 80,529,601.93 80,529,601.93
Information about performance obligations:
The income of the parent company in this period was all income from leasing business.
Information in relation to the transaction price apportioned to the residual contract performance obligation:
The amount of revenue corresponding to performance obligations of contracts signed but not performed or not fully performed yet
275
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
was RMB0.00 at the period-end, among which RMBXXX was expected to be recognized in the year, RMBXXX in the year and
RMBXXX in the year.
Other notes:
5. Investment Income
Unit: RMB
Item Amount of the current period Amount of the previous period
Long-term equity investment income
4,650,460.58 634,098.07
accounted by equity method
Interest income from entrusted loans 129,717,557.63 115,612,421.39
Total 134,368,018.21 116,246,519.46
6. Other
XVIII. Supplementary Materials
1. Items and Amounts of Non-recurring Profit or Loss
√ Applicable □ Not applicable
Unit: RMB
Item Amount Note
Gains/losses from the disposal of
-62,170.29
non-current assets
Government grants recorded in the current
profit or loss (except for those acquired in
the ordinary course of company's business,
Mainly received government grants
in line with national policies and 23,923,655.59
recognized by corporate headquarters
regulations, or granted continuously
according to certain standard quotas or
amounts)
Other non-operating income and expense
2,915,682.88
other than the above
Other profit and loss items in line with the
definition of non-recurring gains and 169,262.03
losses
Less: Income tax effects 6,749,597.21
Non-controlling interests effects 5,087.57
Total 20,191,745.43 --
Details of other profit and loss items in line with the definition of non-recurring gains and losses:
276
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021
□ Applicable √ Not applicable
There are no other profit and loss items in line with the definition of non-recurring gains and losses in the Company.
Note to defining the non-recurring profit and loss items listed in the Explanatory Notice of Information Disclosure by Companies
Offering Securities to the Public No. 1 - Non-recurring Profit and Loss Items as recurring profit and loss items
□ Applicable √ Not applicable
2. Return on Equity and Earnings Per Share
EPS
Profit as of Reporting Period Weighted average ROE (%)
EPS-basic EPS-diluted
Net profit attributable to ordinary
24.69% 1.6846 1.6846
shareholders of the Company
Net profit attributable to ordinary
shareholders of the Company
24.19% 1.6507 1.6507
after deduction of non-recurring
profit or loss
3. Accounting data differences under PRC GAAP and those under IFRSs
（ 1 ） Differences between disclosed net profits and net assets in financial report in accordance with
International Accounting Standards and Chinese Accounting Standards.
□ Applicable √ Not applicable
（ 2 ） Differences between disclosed net profits and net assets in financial report in accordance with
Domestic Accounting Standards and Chinese Accounting Standards.
□ Applicable √ Not applicable
(3) Explain Reasons for the Differences between Accounting Data under Domestic and Overseas
Accounting Standards; for any Adjustment Made to the Difference Existing in the Data Audited by the
Foreign Auditing Agent, Such Foreign Auditing Agent’s Name Shall Be Clearly Stated
4. Other
277
