ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
SHENZHEN PROPERTIES & RESOURCES DEVELOPMENT (GROUP) LTD.
SEMIANNUAL FINANCIAL REPORT 2022
August 2022
1
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Financial Statements
I. Auditor’s Report
Are these interim financial statements audited by an independent auditor?
□ Yes No
These interim financial statements have not been audited by an independent auditor.
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.
30 June 2022
Unit: RMB
Item 30 June 2022 1 January 2022
Current assets:
Monetary assets 1,849,085,199.61 2,337,067,963.55
Settlement reserve
Interbank loans granted
Held-for-trading financial assets
Derivative financial assets
Notes receivable 150,000.00 200,000.00
Accounts receivable 372,687,342.05 295,184,881.92
Accounts receivable financing
Prepayments 50,838,741.68 70,979,023.99
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract
reserve
Other receivables 849,028,570.14 868,843,269.71
Including: Interest receivable 0.00 292,279.16
Dividends receivable 0.00 0.00
Financial assets purchased under resale
agreements
2
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Inventories 9,887,020,742.83 9,125,134,062.27
Contract assets
Assets held for sale
Current portion of non-current assets
Other current assets 59,737,265.88 58,996,984.81
Total current assets 13,068,547,862.19 12,756,406,186.25
Non-current assets:
Loans and advances to customers
Investments in debt obligations
Investments in other debt obligations
Long-term receivables 23,297,932.97 23,831,889.11
Long-term equity investments 51,220,215.75 50,360,681.37
Investments in other equity
914,972.72 1,002,551.95
instruments
Other non-current financial assets
Investment property 466,359,148.85 452,419,511.17
Fixed assets 89,069,782.55 114,155,590.40
Construction in progress
Productive living assets
Oil and gas assets
Right-of-use assets 71,219,989.28 71,472,680.73
Intangible assets 1,362,405.36 1,753,389.33
Development costs
Goodwill 9,446,847.38 9,446,847.38
Long-term prepaid expense 21,985,116.88 22,751,829.74
Deferred income tax assets 1,360,135,643.80 1,279,816,590.32
Other non-current assets 2,750,873.08 45,571,997.85
Total non-current assets 2,097,762,928.62 2,072,583,559.35
Total assets 15,166,310,790.81 14,828,989,745.60
Current liabilities:
Short-term borrowings
Borrowings from the central bank
Interbank loans obtained
Held-for-trading financial liabilities
Derivative financial liabilities
3
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Notes payable
Accounts payable 299,749,726.45 351,831,212.23
Advances from customers 11,924,111.88 3,744,582.25
Contract liabilities 825,293,704.21 1,371,850,725.60
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 178,698,661.25 230,618,067.23
Taxes payable 3,707,684,048.93 3,316,590,190.34
Other payables 1,834,012,894.06 1,027,613,690.94
Including: Interest payable 0.00 0.00
Dividends payable 417,468,458.60 17,542,675.98
Handling charges and commissions
payable
Reinsurance payables
Liabilities directly associated with
assets held for sale
Current portion of non-current
90,188,631.18 83,924,701.83
liabilities
Other current liabilities 61,443,414.40 77,355,792.16
Total current liabilities 7,008,995,192.36 6,463,528,962.58
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 3,779,015,668.00 3,524,500,000.00
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 81,328,041.64 83,081,182.89
Long-term payables 0.00 0.00
Long-term employee benefits payable 0.00 0.00
Provisions 1,436,353.14 1,425,490.50
Deferred income 0.00 0.00
Deferred income tax liabilities 239,383.87 307,853.79
4
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Other non-current liabilities 118,749,645.02 126,059,683.08
Total non-current liabilities 3,980,769,091.67 3,735,374,210.26
Total liabilities 10,989,764,284.03 10,198,903,172.84
Owners’ equity:
Share capital 595,979,092.00 595,979,092.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 80,488,045.38 146,986,167.70
Less: Treasury stock 0.00 0.00
Other comprehensive income -6,111,374.24 -8,174,653.66
Specific reserve
Surplus reserves 29,637,548.47 47,574,940.18
General reserve
Retained earnings 3,437,974,711.46 3,800,901,413.35
Total equity attributable to owners of the
4,137,968,023.07 4,583,266,959.57
Company as the parent
Non-controlling interests 38,578,483.71 46,819,613.19
Total owners’ equity 4,176,546,506.78 4,630,086,572.76
Total liabilities and owners’ equity 15,166,310,790.81 14,828,989,745.60
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 30 June 2022 1 January 2022
Current assets:
Monetary assets 953,783,344.78 1,177,352,486.44
Held-for-trading financial assets
Derivative financial assets
Notes receivable
Accounts receivable 3,014,608.24 2,223,974.66
Accounts receivable financing
Prepayments 2,700.00 5,400.00
Other receivables 5,164,280,163.52 2,412,506,681.28
5
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Including: Interest receivable 385,423,194.45 0.00
Dividends receivable 0.00 0.00
Inventories 742,236,882.61 2,343,857,737.13
Contract assets
Assets held for sale
Current portion of non-current assets
Other current assets 1,544,107,832.54 496,729.09
Total current assets 8,407,425,531.69 5,936,443,008.60
Non-current assets:
Investments in debt obligations
Investments in other debt obligations
Long-term receivables 0.00 0.00
Long-term equity investments 1,385,686,096.14 1,109,826,561.76
Investments in other equity
1,145,472.72 1,233,051.95
instruments
Other non-current financial assets
Investment property 272,005,587.30 283,198,989.66
Fixed assets 36,239,485.56 41,133,269.92
Construction in progress
Productive living assets
Oil and gas assets
Right-of-use assets 3,392,093.95 4,075,422.31
Intangible assets 0.00 0.00
Development costs
Goodwill 0.00 0.00
Long-term prepaid expense 933,772.57 259,463.73
Deferred income tax assets 181,342,381.69 190,014,842.35
Other non-current assets 2,750,873.08 1,718,846,484.20
Total non-current assets 1,883,495,763.01 3,348,588,085.88
Total assets 10,290,921,294.70 9,285,031,094.48
Current liabilities:
Short-term borrowings
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable
6
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Accounts payable 28,854,978.13 48,640,839.24
Advances from customers 0.00 425,164.77
Contract liabilities 524,139,983.49 524,139,983.49
Employee benefits payable 40,761,711.90 49,313,279.30
Taxes payable 5,430,228.58 4,678,424.25
Other payables 7,278,541,787.97 5,963,004,158.44
Including: Interest payable 0.00 0.00
Dividends payable 405,295,424.96 29,642.40
Liabilities directly associated with
assets held for sale
Current portion of non-current
65,262,588.80 65,163,793.74
liabilities
Other current liabilities 47,172,598.51 47,172,598.51
Total current liabilities 7,990,163,877.38 6,702,538,241.74
Non-current liabilities:
Long-term borrowings 619,300,000.00 525,100,000.00
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 2,659,760.04 2,976,367.29
Long-term payables 0.00 0.00
Long-term employee benefits payable 0.00 0.00
Provisions 0.00 0.00
Deferred income 0.00 0.00
Deferred income tax liabilities 0.00 0.00
Other non-current liabilities 40,000,000.00 40,000,000.00
Total non-current liabilities 661,959,760.04 568,076,367.29
Total liabilities 8,652,123,637.42 7,270,614,609.03
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 0.00 0.00
7
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Other comprehensive income -2,692,487.12 -2,574,121.54
Specific reserve
Surplus reserves 29,637,548.47 29,637,548.47
Retained earnings 961,997,123.82 1,337,497,586.41
Total owners’ equity 1,638,797,657.28 2,014,416,485.45
Total liabilities and owners’ equity 10,290,921,294.70 9,285,031,094.48
3. Consolidated Income Statement
Unit: RMB
Item H1 2022 H1 2021
1. Revenue 1,988,299,840.24 2,706,785,638.30
Including: Operating revenue 1,988,299,840.24 2,706,785,638.30
Interest income
Insurance premium income
Handling charge and
commission income
2. Costs and expenses 1,648,725,222.85 1,850,099,669.30
Including: Cost of sales 1,068,652,583.32 906,050,067.72
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 394,230,719.81 814,752,940.13
Selling expense 11,358,858.51 10,418,105.37
Administrative expense 143,701,058.05 119,107,631.52
R&D expense 2,689,725.40 0.00
Finance costs 28,092,277.76 -229,075.44
Including: Interest
36,281,087.17 38,497,917.45
expense
8
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Interest
-9,179,453.97 -39,641,607.44
income
Add: Other income 6,806,445.99 3,242,846.47
Return on investment (“-” for loss) 946,914.05 3,350,564.96
Including: Share of profit or loss
859,534.38 3,218,483.17
of joint ventures and associates
Income from the
derecognition of financial assets at
amortized cost (“-” for loss)
Exchange gain (“-” for loss)
Net gain on exposure hedges (“-”
for loss)
Gain on changes in fair value (“-”
for loss)
Credit impairment loss (“-” for
-14,462,076.54 -6,797,536.40
loss)
Asset impairment loss (“-” for loss) 3,302.47 -33,715.66
Asset disposal income (“-” for loss) -41,452.49 0.00
3. Operating profit (“-” for loss) 332,827,750.87 856,448,128.37
Add: Non-operating income 2,546,068.46 10,624,684.14
Less: Non-operating expense 1,417,586.84 1,953,595.36
4. Profit before tax (“-” for loss) 333,956,232.49 865,119,217.15
Less: Income tax expense 92,655,204.26 195,401,618.54
5. Net profit (“-” for net loss) 241,301,028.23 669,717,598.61
5.1 By operating continuity
5.1.1 Net profit from continuing
241,301,028.23 669,717,598.61
operations (“-” for net loss)
5.1.2 Net profit from discontinued
0.00 0.00
operations (“-” for net loss)
5.2 By ownership
5.2.1 Net profit attributable to
250,802,157.71 677,467,066.42
owners of the Company as the parent
5.2.1 Net profit attributable to non-
-9,501,129.48 -7,749,467.81
controlling interests
6. Other comprehensive income, net of
2,063,279.42 -818,697.61
tax
Attributable to owners of the Company 2,063,279.42 -818,697.61
9
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
as the parent
6.1 Items that will not be reclassified
-118,365.58 -265,258.45
to profit or loss
6.1.1 Changes caused by
remeasurements on defined benefit 0.00 0.00
schemes
6.1.2 Other comprehensive
income that will not be reclassified to 0.00 0.00
profit or loss under the equity method
6.1.3 Changes in the fair value of
-118,365.58 -265,258.45
investments in other equity instruments
6.1.4 Changes in the fair value
0.00 0.00
arising from changes in own credit risk
6.1.5 Other 0.00 0.00
6.2 Items that will be reclassified to
2,181,645.00 -553,439.16
profit or loss
6.2.1 Other comprehensive
income that will be reclassified to profit
or loss under the equity method
6.2.2 Changes in the fair value of
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 currency- 2,181,645.00 -553,439.16
denominated financial statements
6.2.7 Other
Attributable to non-controlling
0.00 0.00
interests
7. Total comprehensive income 243,364,307.65 668,898,901.00
Attributable to owners of the Company
252,865,437.13 676,648,368.81
as the parent
Attributable to non-controlling -9,501,129.48 -7,749,467.81
10
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
interests
8. Earnings per share
8.1 Basic earnings per share 0.4208 1.1367
8.2 Diluted earnings per share 0.4208 1.1367
Where business combinations under common control occurred in the Current Period, the net profit achieved by the acquirees before
the combinations was RMB-6,933,601.34, with the amount for the same period of last year being RMB1,091,542.67
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 H1 2022 H1 2021
1. Operating revenue 31,589,670.59 42,300,895.35
Less: Cost of sales 17,210,314.74 18,650,836.30
Taxes and surcharges 3,188,103.66 3,067,936.60
Selling expense 189,424.71 427,076.97
Administrative expense 45,512,068.89 35,663,070.91
R&D expense 0.00 0.00
Finance costs 4,842,416.19 -18,675,114.65
Including: Interest expense 13,075,372.03 12,722,639.32
Interest income -5,221,428.26 -32,650,270.94
Add: Other income 182,349.33 102,972.08
Return on investment (“-” for loss) 77,583,669.56 63,037,324.89
Including: Share of profit or loss
859,534.38 3,218,483.17
of 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
47,995.81 -279,188.00
loss)
Asset impairment loss (“-” for loss) 0.00 0.00
Asset disposal income (“-” for loss) 0.00 0.00
11
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
2. Operating profit (“-” for loss) 38,461,357.10 66,028,198.19
Add: Non-operating income 0.00 7,173,820.40
Less: Non-operating expense 23,576.47 269.72
3. Profit before tax (“-” for loss) 38,437,780.63 73,201,748.87
Less: Income tax expense 8,672,460.66 -5,332,877.48
4. Net profit (“-” for net loss) 29,765,319.97 78,534,626.35
4.1 Net profit from continuing
29,765,319.97 78,534,626.35
operations (“-” for net loss)
4.2 Net profit from discontinued
0.00 0.00
operations (“-” for net loss)
5. Other comprehensive income, net of
-118,365.58 -265,258.45
tax
5.1 Items that will not be reclassified to
-118,365.58 -265,258.45
profit or loss
5.1.1 Changes caused by
remeasurements on defined benefit 0.00 0.00
schemes
5.1.2 Other comprehensive income
that will not be reclassified to profit or 0.00 0.00
loss under the equity method
5.1.3 Changes in the fair value of
-118,365.58 -265,258.45
investments in other equity instruments
5.1.4 Changes in the fair value
0.00 0.00
arising from changes in own credit risk
5.1.5 Other 0.00 0.00
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
12
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
5.2.6 Differences arising from the
translation of foreign currency-
denominated financial statements
5.2.7 Other
6. Total comprehensive income 29,646,954.39 78,269,367.90
7. Earnings per share
7.1 Basic earnings per share 0.0499 0.1318
7.2 Diluted earnings per share 0.0499 0.1318
5. Consolidated Cash Flow Statement
Unit: RMB
Item H1 2022 H1 2021
1. Cash flows from operating activities:
Proceeds from sale of commodities and
1,508,257,820.26 3,001,364,247.49
rendering of services
Net increase in customer deposits and
interbank deposits
Net increase in borrowings from the
central bank
Net increase in loans from other
financial institutions
Premiums received on original
insurance contracts
Net proceeds from reinsurance
Net increase in deposits and
investments of policy holders
Interest, 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 9,187,939.90 27,946,004.56
Cash generated from other operating
461,787,150.96 225,294,018.32
activities
Subtotal of cash generated from operating 1,979,232,911.12 3,254,604,270.37
13
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
activities
Payments for commodities and services 1,486,656,535.01 653,018,303.65
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 503,751,276.86 453,393,551.31
Taxes paid 278,354,981.59 899,673,187.91
Cash used in other operating activities 106,464,348.75 106,957,925.58
Subtotal of cash used in operating
2,375,227,142.21 2,113,042,968.45
activities
Net cash generated from/used in
-395,994,231.09 1,141,561,301.92
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment
Return on investment
Net proceeds from the disposal of fixed
assets, intangible assets and other long- 33,054.00 26,112.57
lived assets
Net proceeds from the disposal of
subsidiaries and other business units
Cash generated from other investing
activities
Subtotal of cash generated from investing
33,054.00 26,112.57
activities
Payments for the acquisition of fixed
assets, intangible assets and other long- 8,208,285.38 13,070,111.84
lived assets
Payments for investments 240,634,030.00 0.00
Net increase in pledged loans granted
Net payments for the acquisition of
subsidiaries and other business units
14
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Cash used in other investing activities
Subtotal of cash used in investing
248,842,315.38 13,070,111.84
activities
Net cash generated from/used in investing
-248,809,261.38 -13,043,999.27
activities
3. Cash flows from financing activities:
Capital contributions received 1,260,000.00 140,000.00
Including: Capital contributions by
1,260,000.00 140,000.00
non-controlling interests to subsidiaries
Borrowings raised 286,832,330.00 0.00
Cash generated from other financing
activities
Subtotal of cash generated from financing
288,092,330.00 140,000.00
activities
Repayment of borrowings 30,900,000.00 100,000.00
Interest and dividends paid 93,476,441.56 366,502,885.51
Including: Dividends paid by
subsidiaries to non-controlling interests
Cash used in other financing activities 12,142,998.09 8,788,006.37
Subtotal of cash used in financing
136,519,439.65 375,390,891.88
activities
Net cash generated from/used in
151,572,890.35 -375,250,891.88
financing activities
4. Effect of foreign exchange rates
2,438,091.50 -569,806.99
changes on cash and cash equivalents
5. Net increase in cash and cash
-490,792,510.62 752,696,603.78
equivalents
Add: Cash and cash equivalents,
1,963,988,756.69 4,372,982,079.50
beginning of the period
6. Cash and cash equivalents, end of the
1,473,196,246.07 5,125,678,683.28
period
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item H1 2022 H1 2021
1. Cash flows from operating activities:
Proceeds from sale of commodities and 25,384,592.62 32,652,425.50
15
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
rendering of services
Tax rebates 0.00 23,635,866.65
Cash generated from other operating
1,332,729,141.98 1,569,362,437.20
activities
Subtotal of cash generated from operating
1,358,113,734.60 1,625,650,729.35
activities
Payments for commodities and services 31,342,993.24 40,183,727.21
Cash paid to and for employees 35,011,651.40 30,961,214.02
Taxes paid 25,455,041.33 8,196,879.55
Cash used in other operating activities 1,183,602,910.44 125,972,788.21
Subtotal of cash used in operating
1,275,412,596.41 205,314,608.99
activities
Net cash generated from/used in
82,701,138.19 1,420,336,120.36
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment
Return on investment
Net proceeds from the disposal of fixed
assets, intangible assets and other long- 209.00 2,344.57
lived assets
Net proceeds from the disposal of
subsidiaries and other business units
Cash generated from other investing
activities
Subtotal of cash generated from investing
209.00 2,344.57
activities
Payments for the acquisition of fixed
assets, intangible assets and other long- 390,961.75 6,654,920.76
lived assets
Payments for investments 389,000,000.00 209,000,000.00
Net payments for the acquisition of
subsidiaries and other business units
Cash used in other investing activities
Subtotal of cash used in investing
389,390,961.75 215,654,920.76
activities
Net cash generated from/used in investing
-389,390,752.75 -215,652,576.19
activities
3. Cash flows from financing activities:
16
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Capital contributions received 0.00 0.00
Borrowings raised 125,000,000.00 0.00
Cash generated from other financing
activities
Subtotal of cash generated from financing
125,000,000.00 0.00
activities
Repayment of borrowings 30,800,000.00 0.00
Interest and dividends paid 13,015,483.64 257,143,626.33
Cash used in other financing activities 1,227,250.00 0.00
Subtotal of cash used in financing
45,042,733.64 257,143,626.33
activities
Net cash generated from/used in
79,957,266.36 -257,143,626.33
financing activities
4. Effect of foreign exchange rates
20,809.20 -2,544.95
changes on cash and cash equivalents
5. Net increase in cash and cash
-226,711,539.00 947,537,372.89
equivalents
Add: Cash and cash equivalents,
808,411,401.68 3,190,160,215.19
beginning of the period
6. Cash and cash equivalents, end of the
581,699,862.68 4,137,697,588.08
period
7. Consolidated Statements of Changes in Owners’ Equity
H1 2022
Unit: RMB
H1 2022
Equity attributable to owners of the Company as the parent
Other equity Oth Non
Tota
instruments Less er -
l
Shar Capi : com Spe Surp Gen Reta cont
Item own
Pref Perp rolli
e tal Trea preh cific lus eral ined Oth Subt
erre etua ers’
capi Oth rese sury ensi rese rese rese earn er otal ng
d l equi
tal er rves stoc ve rve rves rve ings inter
shar bon ty
k inco ests
es ds
me
1. Balance as
595, 146, - 47,5 3,80 4,58 46,8 4,63
at the end of 979, 986, 8,17 74,9 0,90 3,26 19,6 0,08
0.00 0.00 0.00 0.00 0.00 0.00
the Reporting 092. 167. 4,65 40.1 1,41 6,95 13.1 6,57
00 70 3.66 8 3.35 9.57 9 2.76
Period of the
17
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
prior year
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
at the
595, 146, - 47,5 3,80 4,58 46,8 4,63
beginning of 979, 986, 8,17 74,9 0,90 3,26 19,6 0,08
0.00 0.00 0.00 0.00 0.00 0.00
the Reporting 092. 167. 4,65 40.1 1,41 6,95 13.1 6,57
00 70 3.66 8 3.35 9.57 9 2.76
Period of the
year
3. Increase/
- - - - -
decrease in -
66,4 2,06 17,9 362, 445, 453,
8,24
the period 98,1 0.00 3,27 0.00 37,3 0.00 926, 298, 540,
1,12
(“-” for 22.3 9.42 91.7 701. 936. 065.
9.48
2 1 89 50 98
decrease)
3.1 Total 250, 252, - 243,
2,06
802, 865, 9,50 364,
comprehensi 3,27
157. 437. 1,12 307.
ve income 9.42
71 13 9.48 65
3.2 Capital - - - - -
increased and 66,4 17,9 208, 292, 1,26 291,
98,1 0.00 0.00 0.00 37,3 0.00 463, 898, 0,00 638,
reduced by
22.3 91.7 077. 591. 0.00 591.
owners 2 1 04 07 07
3.2.1
1,26 1,26
Ordinary
0.00 0,00 0,00
shares 0.00 0.00
increased by
18
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
owners
3.2.2
Capital
increased by
0.00 0.00
holders of
other equity
instruments
3.2.3
Share-based
payments
0.00 0.00
included in
owners’
equity
- - - - -
3.2.4 66,4 17,9 208, 292, 292,
98,1 37,3 463, 898, 898,
Other 22.3 91.7 077. 591. 591.
2 1 04 07 07
- - -
3.3 Profit 405, 405, 405,
265, 265, 265,
distribution 782. 782. 782.
56 56 56
3.3.1
Appropriatio
0.00 0.00
n to surplus
reserves
3.3.2 - - -
Appropriatio 405, 405, 405,
265, 265, 265,
n to general 782. 782. 782.
reserve 56 56 56
3.3.3
Appropriatio
n to owners 0.00 0.00
(or
shareholders)
3.3.4
0.00 0.00
Other
3.4
Transfers
within 0.00 0.00
owners’
equity
3.4.1 0.00 0.00
19
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Increase in
capital (or
share capital)
from capital
reserves
3.4.2
Increase in
capital (or
0.00 0.00
share capital)
from surplus
reserves
3.4.3
Loss offset
0.00 0.00
by surplus
reserves
3.4.4
Changes in
defined
benefit
0.00 0.00
schemes
transferred to
retained
earnings
3.4.5
Other
comprehensi
ve income 0.00 0.00
transferred to
retained
earnings
3.4.6
0.00 0.00
Other
3.5
Specific 0.00 0.00
reserve
3.5.1
Increase in 0.00 0.00
the period
3.5.2
Used in the 0.00 0.00
period
3.6 Other 0.00 0.00
20
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
4. Balance as 595, 80,4 - 29,6 3,43 4,13 38,5 4,17
979, 88,0 6,11 37,5 7,97 7,96 78,4 6,54
at the end of 0.00 0.00 0.00 0.00 0.00 0.00
092. 45.3 1,37 48.4 4,71 8,02 83.7 6,50
the period 00 8 4.24 7 1.46 3.07 1 6.78
H1 2021
Unit: RMB
H1 2021
Equity attributable to owners of the Company as the parent
Other equity Oth Non
Tota
instruments Less er -
l
Shar Capi : com Spe Surp Gen Reta cont
Item own
Pref Perp rolli
e tal Trea preh cific lus eral ined Oth Subt
erre etua ers’
capi Oth rese sury ensi rese rese rese earn er otal ng
d l equi
tal er rves stoc ve rve rves rve ings inter
shar bon ty
k inco ests
es ds
me
1. Balance as
at the end of 595, 80,4 - 19,2 3,03 3,72 53,2 3,78
979, 88,0 6,74 05,9 8,99 7,91 04,0 1,12
the Reporting
092. 45.3 9,58 79.6 3,91 7,44 39.8 1,47
Period of the 00 8 9.41 3 2.43 0.03 0 9.83
prior year
Add:
Adjustment
for change in
accounting
policy
Adjustment
for correction
of previous
error
Adjustment
for business 69,7 17,9 44,4 132, 132,
84,5 17,9 78,6 181, 181,
combination
81.9 79.8 86.3 248. 248.
under 3 1 4 08 08
common
control
Other
adjustments
2. Balance as 595, 150, - 37,1 3,08 3,86 53,2 3,91
979, 272, 6,74 23,9 3,47 0,09 04,0 3,30
at the 092. 627. 9,58 59.4 2,59 8,68 39.8 2,72
21
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
beginning of 00 31 9.41 4 8.77 8.11 0 7.91
the Reporting
Period of the
year
3. Increase/
decrease in - 400, 399, - 391,
818, 310, 491, 7,60 882,
the period
697. 574. 876. 9,46 409.
(“-” for 61 58 97 7.80 17
decrease)
3.1 Total - 677, 676, - 668,
818, 467, 648, 7,74 898,
comprehensi
697. 066. 368. 9,46 901.
ve income 61 42 81 7.80 01
3.2 Capital
increased and 140, 140,
000. 000.
reduced by
00 00
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
3.2.4
Other
- - -
3.3 Profit 277, 277, 277,
156, 156, 156,
distribution 491. 491. 491.
84 84 84
3.3.1
Appropriatio
n to surplus
22
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
reserves
3.3.2
Appropriatio
n to general
reserve
3.3.3
- - -
Appropriatio 277, 277, 277,
n to owners 156, 156, 156,
(or 491. 491. 491.
84 84 84
shareholders)
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
23
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
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
4. Balance as 595, 150, - 37,1 3,48 4,25 45,5 4,30
979, 272, 7,56 23,9 3,78 9,59 94,5 5,18
at the end of
092. 627. 8,28 59.4 3,17 0,56 72.0 5,13
the period 00 31 7.02 4 3.35 5.08 0 7.08
8. Statements of Changes in Owners’ Equity of the Company as the Parent
H1 2022
Unit: RMB
H1 2022
Other equity instruments Other
Capita Less: compr Specif Surplu Retain Total
Item Share Prefer Perpet l Treasu ehensi ic s ed owner
Other
capital red ual Other reserv ry ve reserv reserv earnin s’
shares bonds es stock incom e es gs equity
e
1. Balance as
at the end of -
595,9 53,87 29,63 1,337, 2,014,
2,574,
the Reporting 79,09 6,380. 7,548. 497,5 416,4
121.5
Period of the 2.00 11 47 86.41 85.45
4
prior year
Add:
Adjustment
for change in
24
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
accounting
policy
Adjustment
for correction
of previous
error
Other
adjustments
2. Balance as
at the
-
beginning of 595,9 53,87 29,63 1,337, 2,014,
2,574,
79,09 6,380. 7,548. 497,5 416,4
the Reporting 121.5
2.00 11 47 86.41 85.45
4
Period of the
year
3. Increase/
decrease in - -
-
375,5 375,6
the period 118,3
00,46 18,82
(“-” for 65.58
2.59 8.17
decrease)
3.1 Total - 29,76 29,64
comprehensi 118,3 5,319. 6,954.
ve income 65.58 97 39
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
25
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
owners’
equity
3.2.4
Other
- -
3.3 Profit 405,2 405,2
distribution 65,78 65,78
2.56 2.56
3.3.1
Appropriatio
n to surplus
reserves
3.3.2
Appropriatio
n to owners
(or
shareholders)
- -
3.3.3 405,2 405,2
Other 65,78 65,78
2.56 2.56
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
26
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
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
4. Balance as -
595,9 53,87 29,63 961,9 1,638,
2,692,
at the end of 79,09 6,380. 7,548. 97,12 797,6
487.1
the period 2.00 11 47 3.82 57.28
2
H1 2021
Unit: RMB
H1 2021
Other equity instruments Other
Capita Less: compr Specif Surplu Retain Total
Item Share Prefer Perpet l Treasu ehensi ic s ed owner
Other
capital red ual Other reserv ry ve reserv reserv earnin s’
shares bonds es stock incom e es gs equity
e
1. Balance as -
595,9 53,87 19,20 1,487, 2,154,
2,545,
at the end of 79,09 6,380. 5,979. 964,8 480,8
451.1
the Reporting 2.00 11 63 94.53 95.08
9
27
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Period of the
prior year
Add:
Adjustment
for change in
accounting
policy
Adjustment
for correction
of previous
error
Other
adjustments
2. Balance as
at the
-
beginning of 595,9 53,87 19,20 1,487, 2,154,
2,545,
79,09 6,380. 5,979. 964,8 480,8
the Reporting 451.1
2.00 11 63 94.53 95.08
9
Period of the
year
3. Increase/
decrease in - -
-
165,8 166,0
the period 265,2
16,80 82,05
(“-” for 58.45
1.37 9.82
decrease)
3.1 Total - 78,53 78,26
comprehensi 265,2 4,626. 9,367.
ve income 58.45 35 90
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
28
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
instruments
3.2.3
Share-based
payments
included in
owners’
equity
3.2.4
Other
- -
3.3 Profit 244,3 244,3
distribution 51,42 51,42
7.72 7.72
3.3.1
Appropriatio
n to surplus
reserves
3.3.2
Appropriatio
n to owners
(or
shareholders)
- -
3.3.3 244,3 244,3
Other 51,42 51,42
7.72 7.72
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
29
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
3.4.3
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
4. Balance as -
595,9 53,87 19,20 1,322, 1,988,
2,810,
at the end of 79,09 6,380. 5,979. 148,0 398,8
709.6
the period 2.00 11 63 93.16 35.26
4
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
30
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
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 11th Meeting of the 10th Board of Directors of the Company on
26 August 2022.
The consolidation scope of the Company’s consolidated financial statements was determined based on the control. There were 63
subsidiaries including Shenzhen Huangcheng Real Estate Co., Ltd., Dongguan Guomao Changsheng Real Estate Development Co.,
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).
31
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
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 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
32
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
(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
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.
33
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
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 i s a joint
arrangement whereby the party to joint arrangement has rights to the net assets of the arrangement.
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
34
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
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 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 cos t: 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 speci fic 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
35
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
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
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
36
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
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 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 rese rve 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
37
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
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
rate shall be accounted through exposure at default
Other receivables-interest receivable group
and the expected credit loss rate within the next 12
Other receivables-other intercourse funds among months or the entire life
related party group
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
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
economic situation, the group’s expected credit loss
Trade acceptance bills receivable
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
38
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
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.
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
39
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
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
One-off amortization method
16. Contract Assets
(1) Recognition method and standards for 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.
(2) Recognition method and accounting treatment method for expected credit loss of 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
40
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
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 rel ated 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 rele vant
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
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.
41
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
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 entitled in t he 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 indivi dual 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
42
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
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 step 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.
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
43
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
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.
Fixed assets are recorded at actual cost at the time of acquisition and depreciated using the straight-line method from the second month
after they reach their intended serviceable condition.
(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
Straight-line
Other equipment 5 5 19
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.
44
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
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 i ts 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.
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
45
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
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
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.
46
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
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 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
47
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
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.
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 42.
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.
48
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
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 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 occurre d 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
49
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
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 i n
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.
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 certai n 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
50
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
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 betwee n 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.
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
51
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
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 de ductible
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 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.
52
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
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
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.
(2) Accounting Treatments of 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 i ncome
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.
53
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
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
(2) Changes in Accounting Estimates
□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 2022; the
data of the period-end refers to the financial statement data on 30 June 2022; the Reporting Period refers to the H1 2022; the same
period of last year refers to the H1 2021. 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%
Added value generated from paid transfer
of the use right of state-owned lands and
VAT of land 30%-60%
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
Real estate tax estate’s original value after deducted 30% 1.2%、12%
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
54
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Name Income tax rate
Chongqing Shenzhen International Trade Center Property
15%
Management Co., Ltd.
Shenzhen Guomao Catering Co., Ltd. 20%
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%
Shenzhen Penghongyuan Industrial Development Co., Ltd. 20%
Shenzhen Sports Service 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.
In accordance with the Announcement on Implementing the Preferential Income Tax Policies for Micro and Small Enterprises and
Household Industrial and Commercial Entities (C.SH. [2021] No. 12) issued by the State Taxation Administration, during the period
from 1 January 2021 to 31 December 2022, the portion of the annual taxable income of small low-profit enterprises not exceeding
RMB1 million shall be included in the taxable income at a reduced rate of 12.5%, and the enterprise income tax shall be levied at the
tax rate of 20%. In accordance with the Announcement on Further Implementing the Preferential Income Tax Policies for Micro and
Small Enterprise (C.SH. [2022] No. 13) issued by the State Taxation Administration, during the period from 1 January 2022 to 31
55
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
December 2024, the portion of the annual taxable income of small low-profit enterprises exceeding RMB1 million but not exceeding
RMB3 million shall be included in the taxable income at a reduced rate of 25%, and the enterprise income tax shall be levied at the tax
rate of 20%. This policy has been applied to 12 subsidiaries such as Chongqing Aobo Elevator Co., Ltd. and Shenzhen Guomao Catering
Co., Ltd. since 2021.
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
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 71,615.91 130,623.99
Bank deposits 1,475,312,518.47 1,956,993,388.60
Other monetary assets 373,701,065.23 379,943,950.96
Total 1,849,085,199.61 2,337,067,963.55
Of which: total amount deposited
56,988,826.71 53,280,873.00
overseas
Total amount of restriction in
375,888,953.54 373,079,206.86
use by guaranteed, pledged or frozen
Other notes:
Among other monetary assets, the funds with limited use rights mainly include the interest on deposits arising from large-denomination
CDs of RMB16,111.20, and the margin and interest of RMB368,609,058.40; the funds with limited use rights in bank deposits mainly
include the bank frozen funds and the interest on time deposits of RMB2,346,666.67, 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
56
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Item Ending balance Beginning balance
Of which:
Of which:
Other notes:
3. Derivative Financial Assets
Unit: RMB
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 150,000.00 200,000.00
Total 150,000.00 200,000.00
Unit: RMB
Ending balance Beginning balance
Carrying balance Bad debt provision Carrying balance Bad debt provision
Categor Withdra Withdra
Carrying Carrying
y Proporti wal Proporti wal
Amount Amount value Amount Amount value
on proporti on proporti
on on
Notes
receivab
le for
which
bad debt 150,000. 200,000.
100.00% 100.00%
provisio 00 00
n
separatel
y
accrued
Of
which:
Of
which:
Total 150,000. 100.00% 200,000. 100.00%
57
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
00 00
Bad debt provision separately accrued:
Unit: RMB
Ending balance
Name
Carrying balance Bad debt provision Withdrawal proportion Withdrawal reason
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:
(6) Notes Receivable with Actual Verification for the Reporting Period
Unit: RMB
Item Amount verified
58
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Of which, verification of significant notes receivable:
Unit: RMB
Verification Whether occurred
Reason for
Name of entity Nature Amount verified procedures because of related-
verification
performed party 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
Categor Withdra Withdra
Carrying Carrying
y Proporti wal Proporti wal
Amount Amount value Amount Amount value
on proporti on proporti
on on
Account
s
receivab
le
withdra
wal of 109,854, 108,764, 1,090,11 109,683, 108,831, 852,375.
21.60% 99.01% 25.86% 99.22%
Bad debt 568.88 452.56 6.32 529.63 153.86 77
provisio
n
separatel
y
accrued
Of
which:
Account
s
receivab
le
withdra 398,719, 27,122,2 371,597, 314,453, 20,120,5 294,332,
78.40% 6.80% 74.14% 6.40%
wal of 518.15 92.42 225.73 086.06 79.91 506.15
bad debt
provisio
n of by
group
59
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Of
which:
508,574, 135,886, 372,687, 424,136, 128,951, 295,184,
Total 100.00% 26.72% 100.00% 30.40%
087.03 744.98 342.05 615.69 733.77 881.92
Bad debt provision separately accrued: 108,764,452.56
Unit: RMB
Ending balance
Name
Carrying balance Bad debt provision Withdrawal proportion Withdrawal reason
Shenzhen Jiyong
Properties & Resources Involved in lawsuit and
93,811,328.05 93,811,328.05 100.00%
Development unrecoverable
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
Those with
insignificant single
Uncollectible for a
amount for which bad 10,388,394.99 9,298,278.67 90.00%
long period
debt provision
separately accrued
Total 109,854,568.88 108,764,452.56
Withdrawal of bad debt provision by group: 27,122,292.42
Unit: RMB
Ending balance
Name
Carrying balance Bad debt provision Withdrawal proportion
Portfolio of credit risk
230,453,307.58 22,119,291.72 9.6%
features
Portfolio of transactions with
168,266,210.57 5,003,000.70 2.97%
other related parties
Total 398,719,518.15 27,122,292.42
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
60
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Within 1 year (including 1 year) 351,869,724.26
1 to 2 years 22,416,959.51
2 to 3 years 8,839,653.22
Over 3 years 125,447,750.04
3 to 4 years 7,249,669.70
4 to 5 years 1,478,687.64
Over 5 years 116,719,392.70
Total 508,574,087.03
(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
108,831,153.86 66,701.30 108,764,452.56
withdrawn
separately
Bad debt
provision
20,120,579.91 7,001,712.51 27,122,292.42
withdrawn by
portfolio
Total 128,951,733.77 7,001,712.51 66,701.30 135,886,744.98
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
Verification Whether occurred
Reason for
Name of entity Nature Amount verified procedures because of related-
verification
performed party transactions
Notes to verification of accounts receivable:
61
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
(4) Top 5 of the Ending Balance of the Accounts Receivable Collected according to Arrears Party
Unit: RMB
Proportion to total ending
Ending balance of bad debt
Name of entity Ending balance balance of accounts
provision
receivable
Shenzhen Jiyong Properties &
Resources Development 93,811,328.05 18.45% 93,811,328.05
Company
Shenzhen Bay Technology
86,462,569.52 17.00% 2,529,166.58
Development Co., Ltd.
Shenzhen Investment Holdings
47,832,951.11 9.41% 1,422,392.91
Co., Ltd.
Shenzhen Wanqu International
14,946,000.00 2.94% 448,380.00
Hotel Co., Ltd.
Shenzhen Shenfubao (Group)
Tianjin Investment Development 8,450,758.68 1.66% 253,522.76
Co., Ltd.
Total 251,503,607.36 49.46%
(5) Accounts Receivable Derecognized due to the Transfer of Financial Assets
(6) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement of Accounts Receivable
Other notes:
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:
7. Prepayment
(1) Prepayment Listed by Aging Analysis
Unit: RMB
Ending balance Beginning balance
Aging
Amount Proportion Amount Proportion
Within 1 year 12,883,228.01 25.00% 24,618,321.77 35.00%
62
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
1 to 2 years 13,011,531.72 26.00% 25,907,661.19 37.00%
2 to 3 years 24,493,271.59 48.00% 499,638.55 1.00%
Over 3 years 450,710.36 1.00% 19,953,402.48 28.00%
Total 50,838,741.68 70,979,023.99
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
As % of the total ending balance of
Name of entity Carrying balance
the prepayments (%)
Shenzhen Qianhai Advanced Information Service Co.,
40,050,000.00 78.78%
Ltd.
Beijing Jingdong Century Information Technology
2,944,781.14 5.79%
Co., Ltd.
Chongqing Yudi Assets Management Co., Ltd. 1,842,000.00 3.62%
Shenzhen Luohu Bureau of Housing and Construction 550,811.28 1.08%
Shenzhen Shengji Clothing Co., Ltd. 519,750.00 1.02%
Subtotal 45,907,342.42 90.30%
Other notes:
8. Other Receivables
Unit: RMB
Item Ending balance Beginning balance
Interests receivable 0.00 292,279.16
Dividends receivable 0.00 0.00
Other Receivables 849,028,570.14 868,550,990.55
Total 849,028,570.14 868,843,269.71
(1) Interest Receivable
1) Category of Interest Receivable
Unit: RMB
Item Ending balance Beginning balance
Fixed-term deposits 292,279.16
Total 0.00 292,279.16
2) Significant Overdue Interest
Unit: RMB
63
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
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
Total 0.00 0.00
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 15,927,349.50 15,025,139.35
Margin 41,110,867.95 44,249,702.32
Reserve fund 496,242.95 386,265.55
Payment on behalf 6,841,037.14 9,150,124.30
External ntercourse funds 862,560,811.14 852,568,764.26
Others 10,862,220.93 28,018,942.03
Total 937,798,529.61 949,398,937.81
64
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
2) Withdrawal of Bad Debt Provision
Unit: RMB
Stage 1 Stage 2 Stage 3
Expected loss in the Expected credit losses
Bad debt provision Expected credit loss of duration (credit for the entire duration Total
the next 12 months impairment not (with credit
occurred) impairment)
Balance as at 1 January
51,065,282.29 29,782,664.97 80,847,947.26
2022
Balance of 1 January
2022 in the Current
Period
Withdrawal of the
8,306,789.80 275,135.61 8,581,925.41
Current Period
Reversal of the
659,913.20 659,913.20
Reporting Period
Balance as at 30 June
59,372,072.09 29,397,887.38 88,769,959.47
2022
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) 56,154,849.28
1 to 2 years 19,448,826.84
2 to 3 years 801,807,450.42
Over 3 years 60,387,403.07
3 to 4 years 2,499,826.35
4 to 5 years 2,115,971.79
Over 5 years 55,771,604.93
Total 937,798,529.61
3) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
Withdrawal of bad debt provision:
Unit: RMB
Beginning Changes in the Reporting Period
Category Ending balance
balance Withdrawal Reversal or Verification Others
65
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
recovery
Bad debt
provision
29,782,664.97 275,135.61 659,913.20 29,397,887.38
withdrawn
separately
Bad debt
provision
51,065,282.29 8,306,789.80 59,372,072.09
withdrawn by
portfolio
Total 80,847,947.26 8,581,925.41 659,913.20 88,769,959.47
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
Verification Whether occurred
Reason for
Name of entity Nature Amount verified procedures because of related-
verification
performed party 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
Proportion to
ending balance of Ending balance of
Name of entity Nature Ending balance Aging
total other bad debt provision
receivables%
Shenzhen Xinhai
Holding Co., Ltd.
and the related
party Shenzhen Intercourse funds 756,526,157.01 2 to 3 years 80.67% 16,695,784.72
Xinhai Rongyao
Real Estate
Development Co.,
66
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Ltd.
Shenzhen
Bangling Stock
Intercourse funds 30,000,000.00 2 to 3 years 3.20% 9,000,000.00
Cooperative
Company
ShenZhen Special
Economic Zone
Real Estate & Intercourse funds 20,722,314.85 Over 5 years 2.21% 0.00
Properties (Group)
Co., Ltd.
Shenzhen Bay
Technology
Intercourse funds 11,809,060.35 1 to 2 years 1.26% 419,496.75
Development Co.,
Ltd.
Shenzhen Qianhai
High End
Intercourse funds 10,720,575.27 Within 1 year 1.14% 321,617.26
Information
Service Co., Ltd.
Total 829,778,107.48 88.48% 26,436,898.73
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.
Classification by nature:
Unit: RMB
Item Ending balance Beginning balance
67
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Depreciation Depreciation
reserves of reserves of
inventories or inventories or
Carrying impairment Carrying impairment
Carrying value Carrying value
balance provision for balance provision for
contract contract
performance performance
costs costs
9,597,308,817. 9,590,660,413. 8,720,133,125. 8,713,484,721.
R&D expenses 6,648,404.13 6,648,404.13
40 27 46 33
Developing
294,014,058.54 294,014,058.54 409,687,436.41 409,687,436.41
properties
Raw materials 2,095,101.98 748,879.60 1,346,222.38 2,005,384.86 701,270.11 1,304,114.75
Products on
2,981,776.45 2,094,300.39 887,476.06 2,238,285.51 2,094,300.39 143,985.12
hand
Low-value
112,572.58 112,572.58 513,804.66 513,804.66
consumables
9,896,512,326. 9,887,020,742. 9,134,578,036. 9,125,134,062.
Total 9,491,584.12 9,443,974.63
95 83 90 27
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 3,805,3 3,920,9
Decem 115,590 175,255 60,384, Bank
Banglin January 00,000. 12,202. 02,831.
ber ,629.32 ,593.56 910.13 loans
g 2021 00 35 67
2025
project
SZPRD
- 15 31
235,810 196,197 224,790 28,593,
Bansha March Januar
,000.00 ,525.93 ,745.77 219.84
n 2019 y 2022
Yujing
68
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Phase II
SZPRD
-
Fuchan 30 June 30 June 911,330 677,368 19,476, 696,844
g 2018 2023 ,000.00 ,072.10 401.99 ,474.09
Garden
Phase II
Yupinlu
232,030 994,667 233,025
anshan
,746.62 .18 ,413.80
Garden
Hainan
Qiongs 6,648,4 6,648,4
han 04.13 04.13
Land
Shenhu
37,002, 37,002,
i
030.89 030.89
Garden
Fuyuan
9,127,0 1,324,9 10,452,
tai
89.11 91.03 080.14
Project
Guang
mingyu 7 21 2,779,2 1,621,0 1,683,3
62,363,
March October 66,400. 00,000. 63,440.
tang 440.41
2022 2024 00 00 41
Project
Land
2021W 1 30 3,449,0 2,133,8 2,145,5
11,761,
R023, March April 77,000. 26,142. 87,781.
639.64
Humen 2022 2024 00 11 75
Town
Shouxi
hu
3,000,0
Ecologi 860,820 860,820
00,000.
cal ,294.93 ,294.93
00
Health
Valley
1,620,9 1,041,1 2,662,0
Others
12.22 53.37 65.59
17,316, 8,720,1 1,101,9 9,597,3
224,790 175,255 60,384,
Total 983,400 33,125. 66,437. 08,817.
,745.77 ,593.56 910.13
.00 46 71 40
Disclose main items of “Developing properties” in the following format:
Unit: RMB
Project Time of Beginning Increase Decrease Ending Accumulated Of which:
69
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
completion balance balance amount of amount of
interest capitalized
capitalization interests for
the Reporting
Period
SZPRD-
1 December 83,077,702.9
Langqiao 3,447,316.75 3,447,316.75
2012 6
International
SZPRD-
Hupan 57,356,637.6 57,082,764.6 10,446,911.4
1 June 2015 273,873.02
Yujing Phase 6 4 3
I
SZPRD-
24,505,635.9 24,369,943.2 27,205,315.9
Songhu 1 July 2017 135,692.64
1 7 5
Langyuan
SZPRD-
Hupan 1 November 45,306,202.6 14,412,375.1 30,893,827.4 30,539,392.6
Yujing Phase 2017 0 8 2 5
II
SZPRD-
Golden 1 December 270,245,459. 106,148,893. 164,096,565. 26,385,636.2
Collar’s 2019 13 90 23 9
Resort
International
1 December
Trade Center 4,839,083.10 4,839,083.10
1995
Plaza
Huangyuyua
1 June 2001 790,140.58 790,140.58
n A Area
Podium
Building of 1 November
645,532.65 645,532.65
Fuchang 1999
Building
SZPRD-
Banshan 12 January 224,790,745. 219,493,288.
5,297,456.87
Yujing Phase 2022 77 90
II
Other items 2,551,428.03 2,551,428.03
409,687,436. 224,790,745. 340,464,123. 294,014,058. 177,654,959.
Total
41 77 64 54 28
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:
70
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Classification by nature:
Unit: RMB
Increased amount Decrease
Beginning Ending
Item Reversal or Remarks
balance Withdrawal Others Others balance
write-off
R&D
6,648,404.13 6,648,404.13
expenses
Raw
701,270.11 47,609.49 748,879.60
materials
Products on
2,094,300.39 2,094,300.39
hand
Total 9,443,974.63 47,609.49 9,491,584.12
Classified by main items:
Unit: RMB
Increased amount Decrease
Beginning Ending
Project Reversal or Remarks
balance Withdrawal Others Others balance
write-off
(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:
Carry-over in Reporting
Project Period-begin Reporting Period Period-end
Period
SZPRD-Guanlan
114,870,683.43 60,384,910.13 175,255,593.56
Bangling
SZPRD-Langqiao
2,971,986.54 2,971,986.54
International
SZPRD-Hupan Yujing
1,292,469.40 12,924.69 1,279,544.71
Phase I
SZPRD-Golden Collar’s
1,115,856.40 449,355.37 666,501.03
Resort
Total 120,250,995.77 60,384,910.13 462,280.07 180,173,625.83
(4) Inventory Restrictions
Disclosing restricted inventory by project:
Unit: RMB
Project Beginning balance Ending balance Reason for restriction
71
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
10. Contract Assets
Unit: RMB
Ending balance Beginning balance
Item Carrying Impairment Carrying Impairment
Carrying value Carrying value
balance provision 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:
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
Item Coupon Actual Maturity Coupon Actual Maturity
Par value Par value
rate interest rate date rate interest rate date
Other notes:
13. Other Current Assets
Unit: RMB
Item Ending balance Beginning balance
72
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Prepaid VAT 17,160,103.72 13,429,805.73
Deducted input tax 7,792,799.63 11,851,148.00
Prepaid income tax 34,784,362.53 33,716,031.08
Total 59,737,265.88 58,996,984.81
Other notes:
14. Investments in Debt Obligations
Unit: RMB
Ending balance Beginning balance
Item Carrying Impairment Carrying Impairment
Carrying value Carrying value
balance provision balance provision
Significant investments in debt obligations
Unit: RMB
Ending balance Beginning balance
Item Coupon Actual Maturity Coupon Actual Maturity
Par value Par value
rate interest rate date rate interest rate date
Withdrawal of impairment provision
Unit: RMB
Stage 1 Stage 2 Stage 3
Expected loss in the Expected credit losses
Bad debt provision Expected credit loss of duration (credit for the entire duration Total
the next 12 months impairment not (with credit
occurred) impairment)
Balance of 1 January
2022 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
Change in ed
Accumulat
fair value provision
Beginning Accrued Ending ed changes
Item in the Cost for losses Remarks
balance interest balance in fair
Reporting recognized
value
Period in other
comprehen
73
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
sive
income
Significant other investments in debt obligations
Unit: RMB
Ending balance Beginning balance
Item Coupon Actual Maturity Coupon Actual Maturity
Par value Par value
rate interest rate date rate interest rate date
Withdrawal of impairment provision
Unit: RMB
Stage 1 Stage 2 Stage 3
Expected loss in the Expected credit losses
Bad debt provision Expected credit loss of duration (credit for the entire duration Total
the next 12 months impairment not (with credit
occurred) impairment)
Balance of 1 January
2022 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 value Carrying value discount rate
balance provision balance provision
Financing
lease 23,297,932.97 23,297,932.97 23,831,889.11 23,831,889.11
accounts
Of
which:
unrealized 14,780,268.83 14,780,268.83 16,430,753.09 16,430,753.09
financing
income
Total 23,297,932.97 23,297,932.97 23,831,889.11 23,831,889.11
Impairment of bad debt provision
Unit: RMB
74
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Stage 1 Stage 2 Stage 3
Expected loss in the Expected credit losses
Bad debt provision Expected credit loss of duration (credit for the entire duration Total
the next 12 months impairment not (with credit
occurred) impairment)
Balance of 1 January
2022 in the Current
Period
Changes of carrying amount with significant amount changed of loss provision in the Current Period
□Applicable Not applicable
(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 Withdra
losses bonus Ending balance
ng Additio ment of wal of
Investe Investm recogni Other or balance of
balance nal other impair
e ent zed equity profits Others (carryin depreci
(carryin investm compre ment
reduced under changes announ g value) ation
g value) ent hensive provisi
the ced to reserve
income on
equity issue
method
I. Joint ventures
Shenzh
en Real
Estate
Jifa 43,516, 784,773 44,301,
Wareho 665.12 .86 438.98
using
Co.,
Ltd.
Shenzh
en 6,844,0 74,760. 6,918,7
Tian’an 16.25 52 76.77
Internat
75
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
ional
Mansio
n
Propert
y
Admini
stration
Co.,
Ltd.
(Tian’a
n
Compa
ny)
Subtota 50,360, 859,534 51,220,
l 681.37 .38 215.75
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
165,000 165,000 165,000
Health
.00 .00 .00
Product
s Co.,
Ltd.
Shenzh
en
Xingha
o
756,670 756,670 756,670
Imitatio
.68 .68 .68
n
Porcela
in Co.,
Ltd.
Shenzh
326,693 326,693 326,693
en
.24 .24 .24
Social
76
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Welfare
Compa
ny Fuda
Electro
nics
Factory
Shenzh
en
Fulong
Industr
1,684,3 1,684,3 1,684,3
y
50.00 50.00 50.00
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
500,000 500,000 500,000
Fund
.00 .00 .00
Longhu
a
Investm
ent
Shenzh
en
Kangle
Sports 540,060 540,060 540,060
Club .00 .00 .00
Huangf
a
Branch
Danken
g
Village
Plants 1,168,9 1,168,9 1,168,9
of 73.20 73.20 73.20
Fumin
in
Guanla
77
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
n Town,
Shenzh
en City
Shenzh
en Bull
Entertai 500,000 500,000 500,000
nment .00 .00 .00
Co.,
Ltd.
Shenzh
en
Lianhu
a
Caitian
1,475,4 1,475,4 1,475,4
Propert
65.91 65.91 65.91
y
Manage
ment
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. 600,000 600,000 600,000
Bao’an .00 .00 .00
Compa
ny
Guiyua
350,000 350,000 350,000
n
.00 .00 .00
Garage
Shenzh
en
Wuwei
500,000 500,000 500,000
ben
.00 .00 .00
Roof
Greenin
g Co.,
78
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Ltd.
Shenzh
enYuan
ping
Plastic 240,000 240,000 240,000
Steel .00 .00 .00
Doors
Co.,
Ltd.
Shenzh
en
Youfan
100,000 100,000 100,000
g
.00 .00 .00
Printing
Co.,
Ltd.
Shenzh
en
Lushen
g
Industri 100,000 100,000 100,000
al .00 .00 .00
Develo
pment
Co.,
Ltd.
Subtota 31,754, 31,754, 31,754,
l 397.22 397.22 397.22
82,115, 859,534 82,974, 31,754,
Total
078.59 .38 612.97 397.22
Other notes:
18. Other Equity Instrument Investment
Unit: RMB
Item Ending balance Beginning balance
Gintian Industry (Group) Co., Ltd. 914,972.72 1,002,551.95
Total 914,972.72 1,002,551.95
Non-trading equity instrument investment in the Reporting Period disclosed by items
Unit: RMB
Dividend Accumulative Accumulative Amount of Reason for Reason for
Project
income gains losses other assigning to other
79
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
recognized comprehensive measure in fair comprehensive
income value of which income
transferred to changes transferred to
retained included other retained
earnings comprehensive earnings
income
Not aiming at
Gintian
gaining
Industry
2,675,383.59 earnings by
(Group) Co.,
selling equity in
Ltd.
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
810,185,273.04 30,262,437.05 37,823,001.92 878,270,712.01
balance
2. Increased
48,387,134.81 19,509,471.00 67,896,605.81
amount of the period
(1) Outsourcing
(2) Transfer from
inventory/fixed
47,868,044.82 19,509,471.00 67,377,515.82
assets/construction in
progress
(3) Business
combination increase
(4) Foreign
519,089.99 519,089.99
currency statement
80
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
3. Decreased
10,610,432.80 10,610,432.80
amount of the period
(1) Disposal
(2) Other transfer 10,610,432.80 10,610,432.80
4. Ending balance 858,572,407.85 39,161,475.25 37,823,001.92 935,556,885.02
II. Accumulative
depreciation and
accumulative
amortization
1. Beginning
395,144,110.90 15,870,449.43 14,836,640.51 425,851,200.84
balance
2. Increased
43,785,704.31 5,088,612.17 3,781,365.96 52,655,682.44
amount of the period
(1) Withdrawal or
28,036,152.93 5,088,612.17 3,781,365.96 36,906,131.06
amortization
(2) Other
15,749,551.38
transfer
3. Decreased
9,309,147.11 9,309,147.11
amount of the period
(1) Disposal
(2) Other transfer 9,309,147.11 9,309,147.11
4. Ending balance 438,929,815.21 11,649,914.49 18,618,006.47 469,197,736.17
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
81
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
IV. Carrying value
1. Ending carrying
419,642,592.64 27,511,560.76 19,204,995.45 466,359,148.85
value
2. Beginning
415,041,162.14 14,391,987.62 22,986,361.41 452,419,511.17
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 Reason for
income Range of fair value
Time of Beginning Ending fair
Project Location Floor area during this fair value changes
completion fair value value
Reporting changes and report
Period index
Whether the Company has new investment properties in construction period measured in fair value
□Yes No
Whether the Company has new investment properties measured in fair value
□Yes No
(3) Investment Property Failed to Accomplish Certification of Property
Unit: RMB
Item Carrying value Reason
02-01 plot of Statutory plan in Baolong Replaced from the construction of
27,511,560.76 Xiamen-Shenzhen Railway, and it is
East Area currently being replaced
Obtained after the success in the last
Meilin land [Note 1] 0.00 instance in 2017, relevant certifications
of property are in the procedure
The house is used for property
management, once occupied by the third
507 Unit, Block No. 6, Maguling 24,643.91 party, a property management company,
now has been recovered, but hasn’t
handled the warrant yet.
Other notes:
[Note 1] As at 30 June 2022, 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.
82
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
21. Fixed Assets
Unit: RMB
Item Ending balance Beginning balance
Fixed assets 89,069,782.55 114,155,590.40
Total 89,069,782.55 114,155,590.40
(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
170,769,520.52 6,483,968.92 20,195,129.01 37,558,734.54 56,526,130.84 291,533,483.83
balance
2. Increased
amount of the 240,226.21 247,127.70 339,894.96 1,567,114.98 2,394,363.85
period
(1)
247,127.70 339,894.96 1,390,384.98 1,977,407.64
Purchase
(2)
Transfer from
construction in
progress
(3)
Business
combination
increase
(4) Others 240,226.21 176,730.00 416,956.21
3. Decreased
amount of the
period
(1)
Disposal or 323,504.00 2,832,372.08 3,155,876.08
scrap
(2) Others 41,402,623.30 41,402,623.30
4. Ending
129,607,123.43 6,731,096.62 20,211,519.97 37,558,734.54 55,260,873.74 249,369,348.30
balance
II.
Accumulative
83
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
depreciation
1. Beginning
117,648,374.76 2,129,589.70 13,427,420.96 11,190,690.65 32,906,100.20 177,302,176.27
balance
2. Increased
amount of the 1,352,670.16 420,706.83 1,003,554.48 3,724,852.62 3,405,520.98 9,907,305.07
period
(1)
1,352,670.16 420,706.83 1,003,554.48 3,724,852.62 3,405,520.98 9,907,305.07
Withdrawal
3. Decreased
amount of the 24,481,215.99 326,802.27 2,177,614.49 26,985,632.75
period
(1)
Disposal or 326,802.27 2,177,614.49 2,504,416.76
scrap
(2) Others 24,481,215.99 24,481,215.99
4. Ending
94,519,828.93 2,550,296.53 14,104,173.17 14,915,543.27 34,134,006.69 160,223,848.59
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
scrap
4. Ending
75,717.16 75,717.16
balance
IV. Carrying
value
84
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
1. Ending
35,087,294.50 4,180,800.09 6,107,346.80 22,643,191.27 21,051,149.89 89,069,782.55
carrying value
2. Beginning
53,121,145.76 4,354,379.22 6,767,708.05 26,368,043.89 23,544,313.48 114,155,590.40
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
2,462,546.02 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 nearby
Room 401, 402, Sanxiang Business the present address. The existing
691,256.12
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:
(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
85
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
(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
ing ed t of ized Source
Project Budget in sed balanc ment schedu ts for
balanc amoun interes interes of fund
fixed amoun e in le the
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:
(4) Engineering Materials
Unit: RMB
Ending balance Beginning balance
Item Carrying Impairment Carrying Impairment
Carrying value Carrying value
balance provision balance provision
Other notes:
23. Productive Living Assets
(1) Productive Living Assets Adopting Cost Measurement Mode
□Applicable Not applicable
86
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
(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
I. Original carrying value
1. Beginning balance 85,899,256.85 85,899,256.85
2. Increased amount of the period 11,559,229.14 11,559,229.14
(1) New Leases 11,559,229.14 11,559,229.14
3. Decreased amount of the period 444,415.14 444,415.14
(1) Disposal 444,415.14 444,415.14
4. Ending balance 97,014,070.85 97,014,070.85
II. Accumulated amortization
1. Beginning balance 14,426,576.12 14,426,576.12
2. Increased amount of the period 11,367,505.45 11,367,505.45
(1) Withdrawal 11,367,505.45 11,367,505.45
3. Decreased amount of the period
(1) Disposal
4. Ending balance 25,794,081.57 25,794,081.57
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
87
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
1. Ending carrying value 71,219,989.28 71,219,989.28
2. Beginning carrying value 71,472,680.73 71,472,680.73
Other notes:
26. Intangible Assets
(1) List of Intangible Assets
Unit: RMB
Non-patent
Item Land use right Patent right Software use rights Total
technologies
I. Original
carrying value
1. Beginning
3,221,505.52 3,221,505.52
balance
2. Increased
amount of the
period
(1)
Purchase
(2) Internal
R&D
(3)
Business
combination
increase
3. Decreased
amount of the
period
(1)
Disposal
4. Ending
3,221,505.52 3,221,505.52
balance
II. Accumulated
amortization
1. Beginning
1,468,116.19 1,468,116.19
balance
2. Increased 390,983.97 390,983.97
88
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
amount of the
period
(1)
390,983.97 390,983.97
Withdrawal
3. Decreased
amount of the
period
(1)
Disposal
4. Ending
1,859,100.16 1,859,100.16
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
1,362,405.36 1,362,405.36
carrying value
2. Beginning
1,753,389.33 1,753,389.33
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: 0.00%.
89
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
(2) Land Use Right Failed to Accomplish Certification of Property
Unit: RMB
Item Carrying value Reason
Other notes:
27. Development Costs
Unit: RMB
Increased amount Decrease
Transferred
Recognized
Beginning Internal into the Ending
Item 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
Name of the Increase Decrease
invested units
Beginning Formed by
or events Ending balance
balance business Disposal
generating
combination
goodwill
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
Beginning
invested units Ending balance
balance Withdrawal Disposal
or events
90
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
generating
goodwill
Total
Information on the Assets Groups or Combination of Assets Groups which Goodwill Belongs to
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
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 22,751,829.74 2,318,604.28 3,085,317.14 21,985,116.88
Total 22,751,829.74 2,318,604.28 3,085,317.14 21,985,116.88
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
Provision for
129,221,875.96 31,019,116.87 119,305,827.39 28,122,514.38
impairment of assets
Internal unrealized
360,087,240.13 90,021,810.11 137,494,156.00 34,373,539.00
profit
Deductible losses 1,207,262,505.92 301,089,011.89 1,200,124,630.73 299,411,568.81
Accrued land VAT 3,542,391,013.29 885,597,754.82 3,184,602,479.28 796,150,619.82
Estimated profit
calculated at pre-sale
206,142,892.04 51,535,723.01 479,584,729.78 119,896,182.45
revenue of property
enterprises
Other accrued expenses 4,619,348.00 872,227.10 8,579,103.04 1,862,165.86
Total 5,449,724,875.34 1,360,135,643.80 5,129,690,926.22 1,279,816,590.32
91
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
(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 957,535.48 239,383.87 1,231,415.14 307,853.79
than the tax basis
Total 957,535.48 239,383.87 1,231,415.14 307,853.79
(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
1,360,135,643.80 1,279,816,590.32
assets
Deferred income tax
239,383.87 307,853.79
liabilities
(4) List of Unrecognized Deferred Income Tax Assets
Unit: RMB
Item Ending balance Beginning balance
Deductible temporary difference 79,379,873.28 64,475,240.37
Deductible losses 446,753,278.03 475,933,209.43
Total 526,133,151.31 540,408,449.80
(5) Deductible Losses of Unrecognized Deferred Income Tax Assets Will Due in the Following Years
Unit: RMB
Year Ending amount Beginning amount Remarks
Y2022 16,615,652.69 49,880,895.14 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 13,844,230.03 The deductible losses of 2021
Y2027 4,085,311.05 The deductible losses of 2022
92
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Total 446,753,278.03 475,933,209.43
Other notes:
31. Other Non-current Assets
Unit: RMB
Ending balance Beginning balance
Item Carrying Impairment Carrying Impairment
Carrying value Carrying value
balance provision balance provision
Prepayment for
purchase of
fixed assets,
investment 115,779.31 115,779.31 115,779.31 115,779.31
properties and
intangible
assets
Prepayment for
long-term
42,726,200.00 42,726,200.00
equity
acquisition
Others 2,635,093.77 2,635,093.77 2,730,018.54 2,730,018.54
Total 2,750,873.08 2,750,873.08 45,571,997.85 45,571,997.85
Other notes:
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:
93
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
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.
36. Accounts Payable
(1) List of Accounts Payable
Unit: RMB
Item Ending balance Beginning balance
Engineering construction expense
183,776,375.66 242,383,453.30
payable
Accrued expenses 23,449,656.74 16,697,665.15
Others 92,523,694.05 92,750,093.78
Total 299,749,726.45 351,831,212.23
(2) Significant Accounts Payable Aged over 1 Year
Unit: RMB
Item Ending balance Unpaid/Un-carry-over reason
Shenzhen Planning Bureau of Land
25,000,000.00 Historical problems
Resources
Jiangsu Hanjian Group Co., Ltd. 23,663,927.03 Unsettled
China Construction Fourth Engineering
18,217,672.83 Unsettled
Division Corp., Ltd.
Shanghai Mingpeng Construction Group
5,976,705.79 Unsettled
Co., Ltd.
Shenzhen Shenxu Electromechanical
4,728,433.00 Unsettled
Engineering Equipment Co., Ltd.
Total 77,586,738.65
Other notes:
94
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
37. Advances from Customers
(1) List of Advances from Customers
Unit: RMB
Item Ending balance Beginning balance
Rental 8,658,171.07 1,265,805.23
Other 3,265,940.81 2,478,777.02
Total 11,924,111.88 3,744,582.25
(2) Significant Advances from Customers Aged over 1 Year
Unit: RMB
Item Ending balance Unpaid/Un-carry-over reason
Other notes:
38. Contract Liabilities
Unit: RMB
Item Ending balance Beginning balance
House payment in advance 767,993,558.23 1,329,251,898.56
Property fee in advance 35,430,173.03 22,742,381.14
Other payments in advance 21,869,972.95 19,856,445.90
Total 825,293,704.21 1,371,850,725.60
Significant changes in the amount of carrying value and the reason in the Reporting Period
Unit: RMB
Change
Item in Reason
amount
SZPRD
-
-Golden
301,820 Carry-over income of the Reporting Period
Collar’s
,916.81
Resort
SZPRD
-
-
Bansha
250,832 Carry-over income of the Reporting Period
n
,288.53
Yujing
Phase II
-
Total 552,653 ——
,205.34
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:
95
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Unit: RMB
Estimated date of Advance sale
No. Project Beginning balance Ending balance
completion proportion
39. Payroll Payable
(1) List of Payroll Payable
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
I. Short-term salary 227,076,754.76 436,732,185.31 488,758,454.44 175,050,485.63
II. Post-employment
benefit-defined 2,208,300.26 36,295,112.76 35,859,697.61 2,643,715.41
contribution plans
III. Termination
1,333,012.21 2,149,251.05 2,477,803.05 1,004,460.21
Benefits
Total 230,618,067.23 475,176,549.12 527,095,955.10 178,698,661.25
(2) List of Short-term Salary
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
1. Salary, bonus,
210,881,513.13 385,551,305.26 436,886,313.14 159,546,505.25
allowance, subsidy
2. Employee welfare 1,229,329.15 2,797,154.57 2,793,581.25 1,232,902.47
3. Social insurance 175,180.41 14,944,773.63 15,060,101.02 59,853.02
Of which:
Medical insurance 171,489.07 13,121,771.61 13,237,287.64 55,973.04
premiums
Work-
1,148.13 516,456.20 516,394.99 1,209.34
related injury insurance
Maternity
2,543.21 657,593.09 657,465.66 2,670.64
insurance
Other
648,952.73 648,952.73
commercial insurances
4. Housing fund 1,739,640.18 13,499,871.63 14,196,587.26 1,042,924.55
5. Labor union budget
and employee 12,713,142.28 8,325,784.12 8,723,918.86 12,315,007.54
education budget
8. Non-monetary 337,949.61 11,613,296.10 11,097,952.91 853,292.80
96
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
benefits
Total 227,076,754.76 436,732,185.31 488,758,454.44 175,050,485.63
(3) List of Defined Contribution Plans
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
1. Basic pension
122,887.45 30,828,191.20 30,824,457.82 126,620.83
benefits
2. Unemployment
3,390.98 1,299,371.48 971,780.33 330,982.13
insurance
3. Annuity 2,082,021.83 4,167,550.08 4,063,459.46 2,186,112.45
Total 2,208,300.26 36,295,112.76 35,859,697.61 2,643,715.41
Other notes:
40. Taxes Payable
Unit: RMB
Item Ending balance Beginning balance
VAT 18,313,322.13 31,899,490.39
Corporate income tax 135,956,455.26 89,909,020.12
Personal income tax 3,599,500.49 4,784,572.49
Urban maintenance and construction tax 1,234,959.36 2,183,941.56
Land appreciation tax 3,542,023,155.33 3,184,727,554.49
Property tax 4,519,345.11 406,052.03
Land use tax 917,403.47 938,263.93
Education Surcharge 548,983.03 956,374.53
Local education surcharge 483,640.79 637,795.25
Others 87,283.96 147,125.55
Total 3,707,684,048.93 3,316,590,190.34
Other notes:
41. Other Payables
Unit: RMB
Item Ending balance Beginning balance
Interests payable 0.00 0.00
Dividends payable 417,468,458.60 17,542,675.98
Other payables 1,416,544,435.46 1,010,071,014.96
97
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Total 1,834,012,894.06 1,027,613,690.94
(1) Interest Payable
Unit: RMB
Item Ending balance Beginning balance
Total 0.00 0.00
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 417,468,458.60 17,542,675.98
Total 417,468,458.60 17,542,675.98
Other notes: including significant dividends payable unpaid for over one year, the unpaid reason shall be disclosed:
Item Amount unpaid Reason
Shenzhen Greening Department Company restructured without
10,869,036.68
clearing payment object
Labor Union of Shenzhen Greening Company restructured without
1,300,000.00
Department clearing payment object
Others Without access to its account and the
33,639.36
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 312,735,362.72 308,594,807.32
Margin 16,645,088.22 14,226,129.01
Collection on behalf 26,751,503.62 16,771,844.07
Intercourse funds 763,295,532.36 425,527,818.25
Accrued expenses 213,175,708.73 169,509,455.08
98
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Payment on behalf 33,285,120.99 16,622,281.69
Others 50,656,118.82 58,818,679.54
Total 1,416,544,435.46 1,010,071,014.96
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
Tencent Technology (Shenzhen) Property management and utilities
5,257,966.56
Company Limited deposit
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
Total 250,944,286.04
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 69,865,800.56 68,984,050.47
Current portion of lease liabilities 20,322,830.62 14,940,651.36
Total 90,188,631.18 83,924,701.83
Other notes:
44. Other Current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Tax to be charged off 61,443,414.40 77,355,792.16
99
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Total 61,443,414.40 77,355,792.16
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
Total
Other notes:
45. Long-term Borrowings
(1) Category of Long-term Borrowings
Unit: RMB
Item Ending balance Beginning balance
Pledged loan 3,159,715,668.00 2,999,400,000.00
Mortgage loan 126,500,000.00 1,500,000.00
Credit loan 492,800,000.00 523,600,000.00
Total 3,779,015,668.00 3,524,500,000.00
Note to the category of long-term borrowings:
Pledged borrowings at the period-end
1. 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.
2. The borrowings are used for Shenzhen International Trade Center Property Management Co., Ltd. to pay for the equity of Shenzhen
Foreign Trade Property Management Co., Ltd., Shenzhen Shenfubao Property Development Co., Ltd., Shenzhen Shenfubao
Hydropower Municipal Service Co., Ltd., Shenzhen Free Trade Zone Security Service Co., Ltd. and Shenzhen Property Management
Co., Ltd. The term of the borrowings is from 18 May 2022 to 26 April 2027, the lending rate is 3.55%, and the pledge is 100% equity
of Shenzhen Foreign Trade Property Management Co., Ltd., Shenzhen Shenfubao Property Development Co., Ltd., Shenzhen
Shenfubao Hydropower Municipal Service Co., Ltd., Shenzhen Free Trade Zone Security Service Co., Ltd. and Shenzhen Property
Management Co., Ltd.
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,
100
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
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.
Other notes, including interest rate range
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:
101
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
47. Lease Liabilities
Unit: RMB
Item Ending balance Beginning balance
Lease payments 125,508,114.13 124,179,565.50
Less: Unrecognized financing expense -23,857,241.87 -26,157,731.25
Less: lease liabilities due within 1 year -20,322,830.62 -14,940,651.36
Total 81,328,041.64 83,081,182.89
Other notes:
48. Long-term Payables
Unit: RMB
Item Ending balance Beginning balance
Total 0.00 0.00
(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
Total 0.00 0.00
(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
102
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
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 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 1,436,353.14 1,425,490.50
residual value of decoration
Total 1,436,353.14 1,425,490.50
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
Total 0.00 0.00
Item involving government grants:
Unit: RMB
Amount
Amount
recorded
recorded Amount
into non-
Amount of into other offset cost Related to
Beginning operating Other Ending
Item newly income in in the assets/relat
balance income in changes balance
subsidy the Reporting ed income
the
Reporting Period
Reporting
Period
Period
Other notes:
103
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
52. Other Non-current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Utility specific fund 513,163.06 615,787.03
Housing principle fund 32,048,385.33 30,182,416.96
House warming deposit 6,957,496.22 7,008,598.13
Electric Equipment Maintenance fund 4,019,415.44 4,019,415.44
Deputed maintenance fund 30,403,544.01 39,097,425.77
Follow-up investment of employees for
40,000,000.00 40,000,000.00
Guanlan Bangling project
Others 4,807,640.96 5,136,039.75
Total 118,749,645.02 126,059,683.08
Other notes:
53. Share Capital
Unit: RMB
Increase/decrease (+/-)
Beginning Ending
New shares Bonus issue
balance Bonus shares Others Subtotal balance
issued from profit
The sum of 595,979,092. 595,979,092.
shares 00 00
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
104
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Item Beginning balance Increase Decrease Ending balance
Capital premium
66,498,122.32 66,498,122.32
(equity premium)
Other capital reserves 80,488,045.38 80,488,045.38
Total 146,986,167.70 66,498,122.32 80,488,045.38
Other notes, including a description of the increase or decrease in the current period and the reasons for the change:
(1) The Company acquired 100% equity of Shenzhen Property Management Co., Ltd. in January 2022, and 100% equity of Shenzhen
Foreign Trade Property Management Co., Ltd., Shenzhen Shenfubao Property Development Co., Ltd., Shenzhen Shenfubao
Hydropower Municipal Service Co., Ltd., Shenzhen Free Trade Zone Security Service Co., Ltd. in February 2022, both by means of
business combination under the same control. It is stipulated that, during the preparation of comparative statements at the beginning of
the period for business combination, the parties involved shall be deemed to be in their present state at the time when the ultimate
controlling party begins to exercise control. Therefore, during the combination of the acquired companies this year, the Company
increased the opening capital reserve, opening surplus reserve and undistributed profit respectively by RMB66,498,122.32,
RMB17,937,391.71, and RMB12,720,655.15.
(2) On the actual acquisition and combination date for the current period, the difference (undistributed profit) between the acquisition
price and the net book value of the assets of the acquired companies on the combination date was RMB201,687,082.98.
56. Treasury Shares
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Total 0.00 0.00
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: Less:
recorded recorded
in other in other
compreh compreh Attribut
Attributable
Income ensive ensive able to
Less: to owners of
Beginning before income income non- Ending
Item Income the
balance taxation in in prior in prior controlli balance
tax Company as
the Current period period ng
expense the parent
Period and and interests
after tax
transferr transferr after tax
ed in ed in
profit or retained
loss in earnings
105
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
the in the
Current Current
Period Period
I. Other
comprehen
sive
income that
-2,574,121.54 -118,365.58 -118,365.58 -2,692,487.12
may not be
reclassified
to profit or
loss
Changes in
fair value
of other -2,574,121.54 -118,365.58 -118,365.58 -2,692,487.12
equity
instrument
investment\
II. Other
comprehen
sive
income that
may 2,181,645.0
-5,600,532.12 2,181,645.00 -3,418,887.12
subsequentl 0
y be
reclassified
to profit or
loss
Differences
arising
from
translation 2,181,645.0
-5,600,532.12 2,181,645.00 -3,418,887.12
of foreign 0
currency-
denominate
d financial
statements
Total of
other
2,063,279.4
comprehen -8,174,653.66 2,063,279.42 -6,111,374.24
2
sive
income
106
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Other notes, including the adjustment of the effective gain/loss on cash flow hedges to the initial recognized amount:
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
47,209,537.05 17,937,391.71 29,272,145.34
reserves
Discretional surplus
365,403.13 365,403.13
reserves
Total 47,574,940.18 17,937,391.71 29,637,548.47
Notes, including changes and reason of change:
Refer to “Capital Reserve” for the reason of decrease in surplus reserves of the Reporting Period.
60. Retained Earnings
Unit: RMB
Item Reporting Period Same period of last year
Beginning balance of retained profits
3,800,901,413.35 3,038,993,912.43
before adjustments
Total retained earnings at the beginning
of the adjustment (“+” for increase, “- 44,478,686.34
“ for decrease)
Beginning balance of retained profits
3,800,901,413.35 3,083,472,598.77
after adjustments
Add: Net profit attributable to owners of
250,802,157.71 1,025,588,514.94
the Company as the parent
Less: Withdrawal of statutory surplus
10,450,980.74
reserve
Dividend of ordinary shares payable 297,708,719.62
Others -208,463,077.04
Ending retained profits 3,437,974,711.46 3,800,901,413.35
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.
107
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
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) RMB12,720,655.15 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.
61. Operating Revenue and Cost of Sales
Unit: RMB
Amount of the current period Amount of the previous period
Item
Revenue Cost Revenue Cost
Main business 1,972,677,481.97 1,067,980,872.62 2,688,603,222.17 902,028,270.86
Others 15,622,358.27 671,710.70 18,182,416.13 4,021,796.86
Total 1,988,299,840.24 1,068,652,583.32 2,706,785,638.30 906,050,067.72
Relevant information of revenue:
Unit: RMB
Category of contracts Segment 1 Segment 2 Total
Product categories 1,988,299,840.24 1,988,299,840.24
Of which:
Real estate 1,156,147,570.46 1,156,147,570.46
Property management 778,342,112.81 778,342,112.81
Leasing business 53,810,156.97 53,810,156.97
Of which:
Shenzhen
Other regions 1,570,922,892.64 1,570,922,892.64
Product categories 417,376,947.60 417,376,947.60
By types of market or
customers
Of which:
Types of contracts
Of which:
By the time of
transferring goods
Of which:
By contract term
108
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Of which:
By marketing channel
Of which:
Total
Information about performance obligations:
On 30 June 2022, the transaction price assigned to unfulfilled (or partially unfulfilled) performance obligations was estimated to be
RMB1.445 billion, 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
RMB1,444,829,540.64 at the period-end, among which RMB471,847,751.64 was expected to be recognized in 2022,
RMB952,981,789.00 in 2023 and RMB20,000,000.00 in 2025.
Other notes:
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
62. Taxes and Surtaxes
Unit: RMB
Item Amount of the current period Amount of the previous period
Urban maintenance and construction tax 6,451,246.20 8,905,060.06
Education Surcharge 2,793,502.94 3,855,174.91
Property tax 2,296,167.11 5,009,454.12
Land use tax 0.00 732,830.19
Vehicle and vessel use tax 14,176.80 1,740.00
Stamp duty 1,998,247.74 1,238,857.61
Local education surcharge 1,827,584.76 2,516,481.48
Land appreciation tax 378,694,384.75 792,335,513.52
Other taxes 155,409.51 157,828.24
Total 394,230,719.81 814,752,940.13
Other notes:
109
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
63. Selling Expense
Unit: RMB
Item Amount of the current period Amount of the previous period
Agency fee 989,571.51 1,623,764.43
Consultancy and sales service charges 2,384,890.28 583,313.72
Advertising expenses 954,193.61 4,348,607.25
Employee remuneration 3,422,942.15 2,806,347.15
Others 3,607,260.96 1,056,072.82
Total 11,358,858.51 10,418,105.37
Other notes:
64. Administrative Expense
Unit: RMB
Item Amount of the current period Amount of the previous period
Employee remuneration 107,934,307.26 83,503,736.04
Administrative office cost 13,369,249.80 12,567,205.36
Assets amortization and depreciation
12,231,294.86 10,685,564.73
expense
Litigation costs 1,823,824.81 162,113.87
Others 8,342,381.32 12,189,011.52
Total 143,701,058.05 119,107,631.52
Other notes:
65. Development Expense
Unit: RMB
Item Amount of the current period Amount of the previous period
Employee remuneration 2,511,310.90 0.00
Office cost 3,395.00 0.00
R&D material expense 25,050.00 0.00
Others 149,969.50 0.00
Total 2,689,725.40 0.00
Other notes:
66. Finance Costs
Unit: RMB
110
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Item Amount of the current period Amount of the previous period
Finance costs 36,281,087.17 38,497,917.45
Less: Interest income 9,179,453.97 39,323,534.92
Foreign exchange gains or losses -1,610,359.72 39,617.59
Others 2,601,004.28 874,996.96
Total 28,092,277.76 -229,075.44
Other notes:
67. Other Income
Unit: RMB
Sources Amount of the current period Amount of the previous period
Government grants related to income 3,006,828.76 503,939.38
Commission charges return of deductible
240,710.82 202,533.32
income tax
Additional deduction of VAT 3,186,192.45 2,536,373.77
Rebate of VAT 372,713.96 0.00
Total 6,806,445.99 3,242,846.47
68. Investment Income
Unit: RMB
Item Amount of the current period Amount of the previous period
Long-term equity investment income
859,534.38 3,218,483.17
accounted by equity method
Interest income from holding of other
87,379.67 132,081.79
investments in debt obligations
Total 946,914.05 3,350,564.96
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:
111
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
71. Credit Impairment Loss
Unit: RMB
Item Amount of the current period Amount of the previous period
Bad debt loss -14,462,076.54 -6,797,536.40
Total -14,462,076.54 -6,797,536.40
Other notes:
72. Asset Impairment Loss
Unit: RMB
Item Amount of the current period Amount of the previous period
II. Inventory falling price loss and
impairment provision for contract 3,302.47 -33,715.66
performance costs
Total 3,302.47 -33,715.66
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 -41,452.49 0.00
74. Non-operating Income
Unit: RMB
Amount recorded in the
Amount of the previous
Item Amount of the current period current non-recurring profit or
period
loss
Gains on exchange of non-
7,000.00
monetary assets
Government subsidies 17,500.00 17,500.00
Confiscated income and
916,961.90 1,746,208.94 916,961.90
default fine
Demolition compensation 7,293,820.40
Failure to pay 874,963.88 874,963.88
Others 736,642.68 1,577,654.80 736,642.68
Total 2,546,068.46 10,624,684.14
Government grants recorded into current profit or loss
Unit: RMB
112
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
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
obtained
from the
state by
undertakin
g the
sustainabili
ty of public
Related to
Others Subsidies utilities, the No No 17,500.00 10,000.00
revenue
supply of
socially
necessary
products,
or the
function of
price
control
Other notes:
75. Non-operating Expense
Unit: RMB
Amount recorded in the
Amount of the previous
Item Amount of the current period current non-recurring profit or
period
loss
Donation 19,300.00 19,300.00
Loss from disposal of non-
101,068.85 21,910.65 101,068.85
current assets
Litigation expenses 114,571.79
Penalty and fine for delaying
1,050,960.64 1,041,812.71 1,050,960.64
payment
Others 246,257.35 775,300.21 246,257.35
Total 1,417,586.84 1,953,595.36
Other notes:
113
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
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 173,064,812.19 420,906,447.59
Deferred income tax expense -80,409,607.93 -225,504,829.05
Total 92,655,204.26 195,401,618.54
(2) Adjustment Process of Accounting Profit and Income Tax Expense
Unit: RMB
Item Amount of the current period
Profit before taxation 333,956,232.49
Current income tax expense accounted at statutory/applicable
83,489,058.12
tax rate
Influence of applying different tax rates by subsidiaries -65,915.42
Influence of income tax before adjustment 10,401,555.26
Influence of non-deductible costs, expenses and losses 6,125,489.14
The effect of using deductible losses of deferred income tax
-8,316,310.61
assets that have not been recognized in the previous period
Effect of deductible temporary differences or deductible losses
1,021,327.76
on deferred income tax assets not recognized in the period
Income tax expenses 92,655,204.26
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 376,141,428.59 78,249,073.49
Interest income 8,168,660.77 58,110,890.94
Net margins, security deposit and various
47,722,607.40 44,352,692.62
special funds received
114
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Other small receivables 29,754,454.20 44,581,361.27
Total 461,787,150.96 225,294,018.32
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 24,801,083.99 23,548,819.59
Paying selling expense in cash 9,594,684.62 5,789,812.13
Large current payment 70,071,543.78 70,066,347.10
Other small payments 1,997,036.36 7,552,946.76
Total 106,464,348.75 106,957,925.58
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
Item Amount of the current period Amount of the previous period
Payment for lease liabilities 12,142,998.09 8,788,006.37
Total 12,142,998.09 8,788,006.37
Notes:
115
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
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 241,301,028.23 669,717,598.61
Add: Provision for impairment of
14,458,774.07 6,831,252.06
assets
Depreciation of fixed assets,
oil-gas assets, and productive biological 46,813,436.13 24,317,021.35
assets
Depreciation of right-of-use
11,367,505.45 6,218,994.79
assets
Amortization of intangible
390,983.97 134,639.16
assets
Amortization of long-term
3,085,317.14 2,303,748.32
prepaid expenses
Losses from disposal of fixed
assets, intangible assets and other long- 41,452.49 0.00
lived assets (gains: negative)
Losses from scrap of fixed
101,068.85 21,910.65
assets (gains: negative)
Losses from changes in fair
value (gains: negative)
Finance costs (gains: negative) 28,092,277.76 -229,075.44
Investment loss (gains:
-6,806,445.99 -3,242,846.47
negative)
Decrease in deferred income
-80,319,053.48 -225,566,185.67
tax assets (gains: negative)
Increase in deferred income tax
-68,469.92 0.00
liabilities (“-” means decrease)
Decrease in inventory (gains:
-761,934,290.05 22,875,129.38
negative)
Decrease in accounts
receivable generated from operating -44,432,489.46 -84,520,841.18
activities (gains: negative)
Increase in accounts payable 151,914,673.72 722,699,956.36
116
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
used in operating activities (decrease:
negative)
Others
Net cash flow from operating
-395,994,231.09 1,141,561,301.92
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 1,473,196,246.07 5,125,678,683.28
Less: Opening balance of cash 1,963,988,756.69 4,372,982,079.50
Plus: Closing balance of cash
equivalents
Less: Opening balance of cash
equivalents
Net increase in cash and cash
-490,792,510.62 752,696,603.78
equivalents
(2) Net Cash Paid for Acquisition of Subsidiaries
Unit: RMB
Amount
Cash or cash equivalents paid in the current period for the
240,634,030.00
business combination occurring in the current period
Of which:
Shenzhen Property Management Co., Ltd. 177,009,030.00
Shenzhen Foreign Trade Property Management Co., Ltd. 20,898,800.00
Shenzhen Shenfubao Property Development Co., Ltd. 29,971,100.00
Shenzhen Shenfubao Hydropower Municipal Service Co., Ltd. 10,864,850.00
Shenzhen Free Trade Zone Security Service Co., Ltd. 1,890,250.00
Of which:
Of which:
Net cash paid for acquisition of subsidiaries 240,634,030.00
Other notes:
117
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
(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 1,473,196,246.07 1,963,988,756.69
Including: Cash on hand 71,615.91 123,973.10
Bank deposits on demand 1,099,423,564.93 5,084,971,676.62
Other monetary assets on demand 373,701,065.23 13,361,971.72
III. Ending balance of cash and cash
1,473,196,246.07 1,963,988,756.69
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:
81. Assets with Restricted Ownership or Right of Use
Unit: RMB
Item Ending carrying value Reason for restriction
Monetary Assets 375,888,953.54 [Note 1] - [Note 9]
Land use right of Fumin New Village,
542,507,314.43 [Note 10]
Futian District
Total 918,396,267.97
Other notes:
Other notes:
[Note 1] In terms of monetary assets with restricted right to use at the period-end, there was a bank guarantee of RMB368,609,058.40
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 RMB2,843,618.40.
[Note 2] In terms of monetary assets with restricted right to use at the period-end, there was an escrow deposit of RMB44,757.83 in
the catering branch of the subsidiary company Shandong Shenguomao Real Estate Management Co., Ltd.
118
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
[Note 3] In terms of monetary assets with restricted right to use at the period-end, there was an advance payment guarantee of
RMB459,627.50 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.
[Note 6] In terms of monetary assets with restricted right to use at the period-end, there was RMB2,346,666.67 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 RMB16,111.20 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 RMB128,974.91 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 RMB156,000 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 56,062,487.14
Of which: USD 120,000.00 6.7114 805,368.00
EUR
HKD 61,229,104.17 0.8552 52,363,129.89
VND 10,335,675,900.00 0.00028 2,893,989.25
Accounts Receivable
Of which: USD
EUR
HKD
Long-term borrowings
119
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Of which: USD
EUR
HKD
Accounts prepaid 8,338.89 7,131.42
Of which: HKD 8,338.89 0.8552 7,131.42
Other payables 4,527,939.28 3,872,293.67
Of which: HKD 4,527,939.28 0.8552 3,872,293.67
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
Main operating Standard currency for
Item Basis for choosing
place accounting
Shum Yip Properties Development Co., Hong Kong HKD Located in HK, settled by HKD
Ltd. and its subsidiary
Vietnam Shenguomao Property Vietnam VND Located in Vietnam, settled by VND
Management 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
Amount recorded in the
Category Amount Listed items
current profit or loss
Subsidy for stabilizing
800,454.00 Other income 800,454.00
employment
Special guidance subsidy for
400,000.00 Other income 400,000.00
scenic spot service industry
Training subsidy for staying
365,580.00 Other income 365,580.00
on the job
Subsidy for high and new
180,000.00 Other income 180,000.00
enterprises
Subsidies for pandemic
100,000.00 Other income 100,000.00
prevention
Other subsidies 621,451.25 Other income 621,451.25
Other subsidies 17,500.00 Non-operating income 17,500.00
120
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Total 2,484,985.25
(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
Other notes:
(2) Combination Cost and Goodwill
Unit: RMB
Combination cost
--Cash
--Fair value of non-cash assets
--Fair value of issued or assumed debts
--Fair value of issued equity securities
--Fair value of the contingent consideration
--Fair value of equity interests held before the acquisition date
on the acquisition date
--Other
Total combination costs
Less: share in the fair value of identifiable net assets acquired
The amount of goodwill/combination cost less than the share in
the 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:
121
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
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
Assets:
Monetary Assets
Accounts receivable
Inventories
Fixed Assets
Intangible Assets
Liabilities:
Borrowings
Accounts payable
Deferred income tax liabilities
Net assets
Less: Non-controlling interests
Net assets acquired
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
122
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Income
Income
from the Net profits
of the
Recogniti period- from the Net profits of
acquiree
Proportion on basis begin to period-begin the acquiree
Combined Combinatio during
of the Basis of the to the during the
party n date the
equity combinati combinati combination period of
period of
on date on date of date of the comparison
comparis
the acquiree
on
acquiree
Under the
same
ultimate
Shenzhen Completi
control
Property 31 January on of 9,750,410. 73,432,7
100.00% both before -1,708,521.80 1,833,413.37
Manageme 2022 equity 15 23.43
and after
nt Co., Ltd. change
the
combinatio
n
Under the
same
Shenzhen
ultimate
Foreign Completi
control 28
Trade on of 4,689,168. 13,712,7
100.00% both before February 36,367.85 -537,162.63
Property equity 06 51.08
and after 2022
Manageme change
the
nt Co., Ltd.
combinatio
n
Under the
same
Shenzhen ultimate
Completi
Shenfubao control 28
on of 17,410,42 55,627,3
Property 100.00% both before February -3,185,005.42 -183,180.78
equity 5.71 00.88
Developme and after 2022
change
nt Co., Ltd. the
combinatio
n
Under the
same
Shenzhen
ultimate
Shenfubao Completi
control 28
Hydropowe on of 7,311,648. 14,328,9
100.00% both before February -1,993,556.10 25,947.21
r Municipal equity 87 40.69
and after 2022
Service change
the
Co., Ltd.
combinatio
n
Under the
Shenzhen same
Free Trade ultimate Completi
28
Zone control on of 4,467,813. 14,304,3
100.00% February -82,885.87 -47,474.50
Security both before equity 55 25.67
2022
Service and after change
Co., Ltd. the
combinatio
123
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
n
Other notes:
(2) Combination Cost
Unit: RMB
Shenzhen Shenzhen
Shenzhen Foreign Shenzhen Free
Shenzhen Property Shenfubao Shenfubao
Trade Property Trade Zone
Combination cost Management Co., Property Hydropower
Management Co., Security Service
Ltd. Development Co., Municipal Service
Ltd. Co., Ltd.
Ltd. Co., Ltd.
--Cash 196,676,700.00 20,898,800.00 59,942,200.00 21,729,700.00 3,780,500.00
--Carrying value of
non-cash assets
--Carrying value of
issued or assumed
debts
--Carrying value of
issued equity
securities
--Contingent
consideration
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
Shenzhen Foreign Shenzhen Shenfubao Shenzhen Shenfubao
Shenzhen Property Shenzhen Free Trade
Trade Property Property Hydropower
Management Co., Zone Security
Management Co., Development Co., Municipal Service
Ltd. Service Co., Ltd.
Ltd. Ltd. Co., Ltd.
Period- Period- Period- Period- Period-
Combin
end of Combina end of Combina end of Combina end of Combina end of
ation
the last tion date the last tion date the last tion date the last tion date the last
date
period period period period period
91,865,0 99,580,0 33,169,1 36,120,1 59,846,0 66,091,4 32,471,5 35,577,3 11,970,9 14,479,9
Assets:
21.54 61.76 11.38 19.27 59.08 69.87 97.50 60.77 47.84 33.02
Monetar 55,066,9 64,230,4 16,986,6 20,798,0 25,928,1 38,465,3 23,883,8 27,883,1 8,452,39 12,166,4
y assets 55.43 62.50 22.97 56.00 56.47 20.27 27.80 72.22 4.02 74.46
Receiva 27,028,9 25,635,7 14,211,3 13,250,4 28,566,6 22,741,0 7,765,48 6,841,75 3,404,74 2,208,21
bles 07.34 38.11 30.55 42.77 07.47 46.85 2.01 7.47 5.44 2.88
Inventor 938,880. 834,370. 84,935.1 103,719. 31,759.4 31,699.4 184,918. 186,658. 40,885.6 25,885.6
ies 58 65 9 68 2 2 86 86 0 0
124
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Fixed 2,485,71 2,516,94 166,673. 172,534. 2,678,51 2,534,27 633,898. 661,516. 72,922.7 79,360.0
assets 9.57 7.44 51 15 8.26 2.41 40 56 8 8
Intangibl
e assets
Liabiliti 58,540,3 64,546,9 19,857,1 22,844,4 34,310,0 37,370,4 12,216,3 13,328,5 7,828,16 10,254,2
es: 99.31 17.73 21.46 97.20 70.75 96.12 16.90 24.07 7.09 66.40
Loans
43,374,2 44,788,1 12,334,4 11,968,9 28,334,6 26,676,4 11,285,5 11,250,2 4,881,47 6,334,03
Payables
63.32 48.32 52.60 01.87 95.55 68.66 94.94 09.29 8.21 7.97
Net 33,324,6 35,033,1 13,311,9 13,275,6 25,535,9 28,720,9 20,255,2 22,248,8 4,142,78 4,225,66
assets 22.23 44.03 89.92 22.07 80.33 73.75 80.60 36.70 0.75 6.62
Less:
Non-
1,951,48 1,839,93
controlli
1.31 9.00
ng
interests
Net
33,324,6 35,033,1 13,311,9 13,275,6 23,584,4 26,881,0 20,255,2 22,248,8 4,142,78 4,225,66
assets
22.23 44.03 89.92 22.07 99.02 34.75 80.60 36.70 0.75 6.62
acquired
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
125
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Name of company Way to gain equity Time and place of gaining Contribution Contribution
equity amount proportion
Business combination under
Shenzhen Shenwu Elevator Co., Ltd. 31 January 2022 100%
the same control 3,500,000
Shenzhen Shenfang Real Estate Business combination under
31 January 2022 100%
Cleaning Co., Ltd. the same control
Shenzhen Wuhe Urban Renewal Co., Newly-established
25 February 2022 100%
Ltd. subsidiary 95,000,000
Shenzhen Fubao Urban Resource Business combination under
28 February 2022 60%
Management Co., Ltd. the same control 3,000,000
Newly-established
Yangzhou Wuhe Real Estate Co., Ltd. 17 March 2022 67%
subsidiary
Shenzhen Tonglu Wuhe Investment Newly-established
2 April 2022 100%
Development Co., Ltd. subsidiary 10,000,000
Shenzhen Guomao Industrial Space Newly-established
27 April 2022 55%
Service Co., Ltd. subsidiary 1,540,000
6. Other
IX. Equity in Other Entities
1. Equity in Subsidiary
(1) Subsidiaries
Main Shareholding percentage
Registrat
Name operating Nature of business (%) Way of gaining
ion place
place Directly Indirectly
Shenzhen Huangcheng Shenzhe
Shenzhen Real estate 100.00% Set-up
Real Estate Co., Ltd. n
Shenzhen Wuhe
Shenzhe
Industry Investment Shenzhen Real estate 100.00% Set-up
n
Development Co., Ltd.
Shenzhen Facility Business
Software and
Management Shenzhe combination
Shenzhen information 35.00%
Community n not under the
technology services
Technology Co., Ltd. same control
Software and Business
Beijing Facility Home
Beijing Beijing information 17.85% combination
Technology Co., Ltd.
technology services not under the
126
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
same control
SZPRD Xuzhou
Dapeng Real Estate Xuzhou Xuzhou Real estate 100.00% Set-up
Development Co., Ltd.
Dongguan ITC
Changsheng Real Donggua
Dongguan Real estate 100.00% Set-up
Estate Development n
Co., Ltd.
SZPRD Yangzhou Real
Yangzho
Estate Development Yangzhou Real estate 100.00% Set-up
u
Co., Ltd.
Shenzhen International
Shenzhe
Trade Center Property Shenzhen Real estate 100.00% Set-up
n
Management Co., Ltd.
Shenzhen Guomaomei Shenzhe
Shenzhen Real estate 100.00% Set-up
Life Service Co., Ltd. n
Shandong Shenguomao
Real Estate Jinan Jinan Real estate 100.00% Set-up
Management Co., Ltd.
Chongqing
Shenguomao Real Chongqing Chongqi
Real estate 100.00% Set-up
Estate Management City ng City
Co., Ltd.
Chongqing Aobo Chongqing Chongqi
Service Industry 100.00% Set-up
Elevator Co., Ltd. City ng City
Chongqing Tianque
Shenzhe
Elevator Technology Shenzhen Service Industry 100.00% Set-up
n
Co., Ltd.
Shenzhen Guoguan
Shenzhe
Electromechanical Shenzhen Service Industry 100.00% Set-up
n
Device Co., Ltd.
Shenzhen Guomao Shenzhe Accommodation and
Shenzhen 100.00% Set-up
Catering Co., Ltd. n catering
Shenzhen Property
Engineering and Shenzhe
Shenzhen Service Industry 100.00% Set-up
Construction n
Supervision Co., Ltd.
SZPRD Commercial Shenzhe
Shenzhen Service Industry 100.00% Set-up
Operation Co., Ltd. n
Zhanjiang Shenzhen Zhanjiang Zhanjian Real estate 100.00% Set-up
127
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Real Estate City g City
Development Co., Ltd.
Shum Yip Properties Hong
Hong Kong Real estate 100.00% Set-up
Development Co., Ltd. Kong
Wayhang Development Hong
Hong Kong Real estate 100.00% Set-up
Co., Ltd. Kong
Chief Link Properties Hong
Hong Kong Real estate 70.00% Set-up
Co., Ltd. Kong
Business
Syndis Investment Co., Hong combination
Hong Kong Real estate 70.00%
Ltd. Kong not under the
same control
Yangzhou Shouxihu
Yangzho
Jingyue Property Yangzhou Real estate 51.00% Set-up
u
Development Co., Ltd.
Shandong International
Trade Center Hotel Jinan Jinan Real estate 100.00% Set-up
Management Co., Ltd.
Shenzhen Shenshan
Special Cooperation Shenzhe
Shenzhen Real estate 65.00% Set-up
Zone Guomao Property n
Development Co., Ltd.
Shenzhen Guomao
Shenzhe
Tongle Property Shenzhen Real estate 51.00% Set-up
n
Management Co., Ltd.
Business
Shenzhen Rongyao
Shenzhe combination
Real Estate Shenzhen Real estate 69.00%
n not under the
Development Co., Ltd.
same control
Business
Shenzhen ITC
Shenzhe combination
Technology Park Shenzhen Real estate 100.00%
n under the same
Service Co., Ltd.
control
Business
Shenzhen Julian
Shenzhe combination
Human Resources Shenzhen Service Industry 100.00%
n under the same
Development Co., Ltd.
control
Shenzhen Business
Huazhengpeng Shenzhe combination
Shenzhen Real estate 100.00%
Property Management n under the same
Development Co., Ltd. control
128
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Business
SZPRD Urban Shenzhe combination
Shenzhen Real estate 100.00%
Renewal Co., Ltd. n under the same
control
Shenzhen Business
Penghongyuan Shenzhe Accommodation and combination
Shenzhen 100.00%
Industrial Development n catering under the same
Co., Ltd. control
Business
Shenzhen Jinhailian
Shenzhe combination
Property Management Shenzhen Real estate 100.00%
n under the same
Co., Ltd.
control
Business
Shenzhen Social Shenzhe Sanitation and social combination
Shenzhen 100.00%
Welfare Co., Ltd. n work under the same
control
Shenzhen Fuyuanmin Business
Property Management Shenzhe combination
Shenzhen Real estate 100.00%
Limited Liability n under the same
Company control
Business
Shenzhen Meilong
Shenzhe combination
Industrial Development Shenzhen Service Industry 100.00%
n under the same
Co., Ltd.
control
Business
Shenzhen Guomao
Shenzhe Public facilities combination
Shenlv Garden Co., Shenzhen 90.00%
n management services under the same
Ltd.
control
Business
Shenzhen Jiayuan
Shenzhe combination
Property Management Shenzhen Real estate 54.00%
n under the same
Co., Ltd.
control
Business
Shenzhen Helinhua
Shenzhe combination
Construction Shenzhen Real estate 90.00%
n under the same
Management Co., Ltd.
control
Business
Shenzhen Zhongtongda
Shenzhe combination
House Xiushan Service Shenzhen Construction industry 90.00%
n under the same
Co., Ltd.
control
Shenzhen Kangping Shenzhen Shenzhe Retail trade 90.00% Business
129
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Industrial Co., Ltd. n combination
under the same
control
Business
Shenzhen Sports Shenzhe Manufacturing combination
Shenzhen 100.00%
Service Co., Ltd. n industry under the same
control
Business
Shenzhen Teacher’s
Shenzhe combination
Home Training Co., Shenzhen Retail trade 100.00%
n under the same
Ltd.
control
Business
Shenzhen Education Shenzhe combination
Shenzhen Service Industry 100.00%
Industrial Co., Ltd. n under the same
control
Business
Shenzhen Yufa Shenzhe combination
Shenzhen Retail trade 80.95%
Industrial Co., Ltd. n under the same
control
SZPRD Fuyuantai Shenzhe
Shenzhen Real estate 100.00% Set-up
Development Co., Ltd. n
Xiamen Shenguomao
Shenzhe
Industrial City Smart Shenzhen Service Industry 51.00% Set-up
n
Service Co., Ltd.
Vietnam Shenguomao
Shenzhe
Property Management Shenzhen Service Industry 100.00% Set-up
n
Co., Ltd.
Shenzhen SZPRD
Shenzhe
Yanzihu Development Shenzhen Real estate 100.00% Set-up
n
Co., Ltd.
Shenzhen Guangming
Shenzhe
Wuhe Real Estate Co., Shenzhen Real estate 100.00% Set-up
n
Ltd.
Dongguan Wuhe Real Shenzhe
Shenzhen Real estate 100.00% Set-up
Estate Co., Ltd. n
Business
Shenzhen Property Shenzhe combination
Shenzhen Real estate 100.00%
Management Co., Ltd. n under the same
control
Shenzhen Shenwu Shenzhe Business
Shenzhen Real estate 100.00%
Elevator Co., Ltd. n combination
130
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
under the same
control
Business
Shenzhen Shenfang
Shenzhe combination
Property Cleaning Co., Shenzhen Real estate 100.00%
n under the same
Ltd.
control
Business
Shenzhen Foreign
Shenzhe combination
Trade Property Shenzhen Real estate 100.00%
n under the same
Management Co., Ltd.
control
Business
Shenzhen Shenfubao
Shenzhe combination
Property Development Shenzhen Real estate 100.00%
n under the same
Co., Ltd.
control
Business
Shenzhen Fubao Urban
Shenzhe combination
Resources Management Shenzhen Real estate 60.00%
n under the same
Co., Ltd.
control
Business
Shenzhen Shenfubao
Shenzhe combination
Hydropower Municipal Shenzhen Real estate 100.00%
n under the same
Service Co., Ltd.
control
Business
Shenzhen Free Trade
Shenzhe combination
Zone Security Service Shenzhen Real estate 100.00%
n under the same
Co., Ltd.
control
Shenzhen Wuhe Urban Shenzhe
Shenzhen Real estate 100.00% Set-up
Renewal Co., Ltd. n
Yangzhou Wuhe Real Yangzho
Yangzhou Real estate 67.00% Set-up
Estate Co., Ltd. u
Shenzhen Tonglu Wuhe
Shenzhe
Investment Shenzhen Real estate 100.00% Set-up
n
Development Co., Ltd.
Shenzhen International
Shenzhe
Trade Industry Space Shenzhen Real estate 55.00% Set-up
n
Service Co., Ltd.
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
131
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
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 non-
Name proportion of non- attributable to the non- distributed to non- controlling interests at
controlling interests controlling interests controlling interests the period-end
Shenzhen Rongyao
Real Estate 31.00% -7,254,199.09 0.00 17,492,106.42
Development Co., Ltd.
Yangzhou Wuhe Real
33.00% -156,134.66 0.00 -156,134.66
Estate Co., 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
Ending balance Beginning balance
Curren Non- Curren Non-
Non- Total Non- Total
Name Curren Total t current Curren Total t current
current liabiliti current liabiliti
t assets assets liabiliti liabiliti t assets assets liabiliti liabiliti
assets es assets es
es es es es
Shenz
hen
Rongy
ao
4,935, 144,21 5,079, 1,942, 3,000, 4,943, 4,650, 137,57 4,788, 1,730, 3,001, 4,732,
Real
109,37 4,537. 323,91 537,43 879,17 416,60 977,97 6,247. 554,22 779,98 348,08 128,07
Estate
5.63 03 2.66 0.11 6.39 6.50 6.49 00 3.49 3.83 9.90 3.73
Develo
pment
Co.,
Ltd.
Yangz
hou
Wuhe 860,92 860,92 861,39 861,39
Real 0,253. 0.00 0,253. 3,388. 0.00 3,388.
Estate 31 31 64 64
Co.,
Ltd.
Unit: RMB
132
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
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
Rongyao - - - - - -
Real Estate 0.00 23,400,642. 23,400,642. 33,317,053. 28,597,092. 28,597,092. 128,433,28
Developme 21 21 14 72 72 8.91
nt Co., Ltd.
Yangzhou
Wuhe Real - -
0.00 97,048.38
Estate Co., 473,135.33 473,135.33
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
Purchase cost/disposal consideration
--Cash
--Fair value of non-cash assets
Total of purchase cost /disposal consideration
Less: Subsidiary net assets proportion calculated by share
proportion obtained/disposal
Difference
Of which: Adjustment of capital reserves
Surplus reserves adjustments
Retained profits adjustments
Other notes:
133
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
3. Equity in Joint Ventures or Associated Enterprises
(1) Significant Joint Ventures or Associated Enterprises
Shareholding percentage (%) Accounting
treatment of the
Main operating Registration Nature of investment to
Name
place place business Directly Indirectly 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 4,060,875.27 57,800,177.33 9,519,579.27 57,331,775.19
Of which: cash and
2,813,000.49 36,792,663.30 9,519,579.27 36,510,372.60
cash equivalents
Non-current assets 86,923,140.50 50,286.77 80,513,120.44 64,052.07
Total assets 90,984,015.77 57,850,464.10 90,032,699.71 57,395,827.26
134
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Current liabilities 2,381,137.83 27,670,957.73 2,999,369.48 27,437,899.29
Non-current liabilities 0.00 16,341,952.82 16,269,895.46
Total liabilities 2,381,137.83 44,012,910.55 2,999,369.48 43,707,794.75
Equity of non-
controlling interests
Equity attributable To
shareholders of the 88,602,877.94 13,837,553.55 87,033,330.23 13,688,032.51
Company as the parent
Portion of net assets
calculated according to
44,301,438.97 6,918,776.78 43,516,665.12 6,844,016.26
proportion of
shareholdings
Adjusted
-Goodwill
-Unrealized profits of
internal transactions
-Others
Carrying value of
equity investment to 44,301,438.97 6,918,776.78 43,516,665.12 6,844,016.26
joint ventures
Fair value of equity
investments of joint
ventures with public
offer
Operating revenue 4,516,455.33 8,483,323.41 11,266,137.60 8,738,744.08
Finance expense -5,293.01 41,255.86 -268,242.57 -23,928.26
Income tax expense 523,182.56 54,163.40 2,093,155.45 53,570.28
Net profit 1,569,547.71 149,521.04 6,279,466.34 160,430.60
Net profit from
discontinued operations
Other comprehensive
income
Total comprehensive
1,569,547.71 149,521.04 6,279,466.34 160,430.60
income
Dividends received
from joint ventures in
the Reporting Period
Other notes:
(3) The Main Financial Information of Significant Associated Enterprises
Unit: RMB
Ending balance/Reporting Period Beginning balance/The same period of
135
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
last year
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Equity of non-controlling interests
Equity attributable To shareholders of the
Company as the parent
Portion of net assets calculated according
to proportion of shareholdings
Adjusted
-Goodwill
-Unrealized profits of internal
transactions
-Others
Carrying value of equity investment to
associated enterprises
Fair value of equity investments of
associated enterprises with public offer
Operating revenue
Net profit
Net profit from discontinued operations
Other comprehensive income
Total comprehensive income
Dividends received from associated
enterprises in the Reporting 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:
136
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Sum calculated by shareholding ratio of
each item
Other notes:
(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
137
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
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.
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,
138
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
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.
(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 30 June 2022, there were certain credit concentration risks in the
Company, and 48.95% of the accounts receivable of the Company (57.71% on 31 December 2021) 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 s oon 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 contract Within 1 year 1-3 years Over 3 years
amount
Banking borrowings 3,779,015,668.00 4,281,391,684.07 263,567,311.21 3,846,019,192.43 171,805,180.43
Accounts payable 299,749,726.45 299,749,726.45 299,749,726.45
Other payables 1,834,012,894.06 1,834,012,894.06 1,821,810,218.02 12,202,676.04
Current portion of other
90,188,631.18 90,188,631.18 90,188,631.18
non-current liabilities
Total 6,002,966,919.69 6,505,342,935.76 2,475,315,886.86 3,846,019,192.43 184,007,856.47
(Continued)
Item Beginning balance
Carrying value Undiscounted contract Within 1 year 1-3 years Over 3 years
amount
Banking borrowings 3,524,500,000.00 4,061,471,066.60 181,841,910.20 3,473,322,700.29 406,306,456.11
Accounts payable 351,831,212.23 351,831,212.23 351,831,212.23
139
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Other payables 1,027,613,690.94 1,027,613,690.94 1,015,411,014.90 12,202,676.04
Current portion of other
83,924,701.83 83,924,701.83 83,924,701.83
non-current liabilities
Total 4,987,869,605.00 5,524,840,671.60 1,633,008,839.16 3,473,322,700.29 418,509,132.15
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 30 June 2022, under the assumption of other fixed variables with 50 basis points changed in interest rate, the bank loan of
RMB3,843,732,330.00 (RMB3,587,800,000.00 on 31 December 2021) 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 t o
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
914,972.72 914,972.72
instrument investment
II. Inconsistent fair
-- -- -- --
value measurement
140
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
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 30
June 2022 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 share
voting rights
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 (solely- RMB28,009
Investment Shenzhen 56.96% 56.96%
owned by the million
Holdings Co., Ltd.
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
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) In 2021, 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
141
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
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
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
Wholly-owned subsidiary of the Company as the parent of the
Shenzhen Bay Technology Development 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 Infinova Limited Subsidiary of the Company as the parent of the Company
Shenzhen Bay Area International Hotel Co., Ltd. Wholly-owned parent company’s grandson company
Shenzhen Hi-tech Zone Development Construction Co., Ltd. Wholly-owned parent company’s grandson company
Hebei Shenbao Investment Development Co., Ltd. Parent company’s grandson company
Shenzhen Bay (Baoding) Innovation Development Co., Ltd. Wholly-owned parent company’s grandson company
Shenzhen Large Industrial Zone (Shenzhen Export Processing
Wholly-owned parent company’s grandson company
Zone) Development Management Group Co., Ltd.
Shenzhen Fubao Industrial Park Operation Co., Ltd. Wholly-owned parent company’s grandson company
Wholly-owned subsidiary of the Company as the parent of the
Shenzhen Shenfubao (Group) Co., Ltd.
Company
Business Apartment of Shenzhen Shenfubao (Group) Co., Ltd. Wholly-owned parent company’s grandson company
142
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Shenzhen Shenfubao (Group) Tianjin Industrial Development
Wholly-owned parent company’s grandson company
Co., Ltd.
Shenzhen Shenfubao (Group) Tianjin Investment Development
Wholly-owned parent company’s grandson company
Co., Ltd.
Shenzhen Shenfubao Eastern Investment Development Co., Ltd. Wholly-owned parent company’s grandson company
Shenzhen Total Logistics Service Co., Ltd. Parent company’s grandson company
Shenzhen Convention & Exhibition Center Management Co., Wholly-owned subsidiary of the Company as the parent of the
Ltd. Company
Shenzhen Xiangmihu International Exchange Center Wholly-owned subsidiary of the Company as the parent of the
Development Co., Ltd. Company
Shenzhen Bay Wanyi Hotel Branch of Shenzhen Wuzhou Hotel
Wholly-owned parent company’s grandson company
Management Co., Ltd.
Shenzhen Bay Wanli Hotel Branch of Shenzhen Wuzhou Hotel
Wholly-owned parent company’s grandson company
Management Co., Ltd.
Wholly-owned subsidiary of the Company as the parent of the
Shenzhen Shentou Property Development Co., Ltd.
Company
Shenzhen Branch of GUOREN PROPERTY AND CASUALTY
Parent company’s grandson company
INSURANCE CO., LTD.
Shenzhen CGC Small Loan Co., Ltd. Parent company’s grandson company
Shenzhen Guarantee Group Co., Ltd. Subsidiary of the Company as the parent of the Company
ShenZhen Special Economic Zone Real Estate & Properties
(Group) Co., Ltd. and its consolidated subsidiaries, except where Subsidiary of the Company as the parent of the Company
the context otherwise requires
Wholly-owned subsidiary of the Company as the parent of the
China Shenzhen Foreign Trade (Group) Corp. Ltd.
Company
Shenzhen Free Trade Zone Life Service Co., Ltd. Parent company’s grandson company
Shenzhen Shenzhen Hong Kong Science and Technology
Subsidiary of the Company as the parent of the Company
Innovation Cooperation Zone Development Co., Ltd.
Shenyue United Investment Co., Ltd. Wholly-owned parent company’s grandson company
Shenzhen Tianjun Industrial Co., Ltd. Parent company’s grandson company
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
143
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Shenzhen Bay
Technology Management
43,219,580.55 81,000,000.00 No 36,898,826.16
Development Co., service fee
Ltd.
Shenzhen General
Institute of Project
Architectural architectural 2,951,039.53
Design and design plan
Research Co., Ltd.
Intelligent
Shenzhen Infinova
engineering 611,563.48
Limited
expense
GUOREN
PROPERTY AND
CASUALTY Insurance 909,945.52 2,178,700.00 No 112,834.59
INSURANCE
CO., LTD.
Shenzhen Shendan
Zengxin Financing
Guarantee fee 1,061,950.00
Guarantee Co.,
Ltd.
Shenzhen Credit
Guarantee Group Guarantee fee 13,656.60
Co., Ltd.
Business
Apartment of
Shenzhen Service fee 26,911.00
Shenfubao
(Group) Co., Ltd.
Information of sales of goods and provision of labor service
Unit: RMB
Amount of the previous
Related party Content Amount of the current period
period
Hebei Shenbao Investment
Property service fee 4,607,506.85 2,805,356.45
Development Co., Ltd.
Hebei Shenbao Investment Water and electricity project
6,583,247.61
Development Co., Ltd. fund
Shenyue United Investment
Property service fee 241,740.58 3,126,797.59
Co., Ltd.
Shenzhen Hi-tech Zone
Development Construction Property service fee 875,587.86 741,984.34
Co., Ltd.
Shenzhen Convention & Property service fee 1,884,845.11
144
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Exhibition Center
Management Co., Ltd.
Shenzhen Total Logistics
Property service fee 1,530,379.26
Service Co., Ltd.
Shenzhen Shenzhen Hong
Kong Science and Technology
Property service fee 516,023.58
Innovation Cooperation Zone
Development Co., Ltd.
Shenzhen Large Industrial
Zone (Shenzhen Export
Processing Zone) Property service fee 36,227.22
Development Management
Group Co., Ltd.
Shenzhen Large Industrial
Zone (Shenzhen Export
Water and electricity project
Processing Zone) 1,359,633.03
fund
Development Management
Group Co., Ltd.
Shenzhen Fubao Industrial
Property service fee 41,148.39
Park Operation Co., Ltd.
Shenzhen Fubao Industrial Water and electricity project
87,654.97
Park Operation Co., Ltd. fund
Shenzhen Shenfubao (Group)
Property service fee 2,957,378.73
Co., Ltd.
Shenzhen Shenfubao (Group) Water and electricity project
1,064,220.19
Co., Ltd. fund
Shenzhen Shenfubao (Group)
Tianjin Investment Property service fee 3,529,946.35 2,730,655.98
Development Co., Ltd.
Shenzhen Shenfubao Eastern
Investment Development Co., Property service fee 38,550.76
Ltd.
Shenzhen Shenfubao Eastern
Water and electricity project
Investment Development Co., 53,761.47
fund
Ltd.
Shenzhen Investment
Property service fee 7,169,148.87
Holdings Co., Ltd.
Shenzhen Bay Area
Property service fee 14,100,000.00
International Hotel Co., Ltd.
Shenzhen Bay (Baoding) Property service fee 163,100.40
145
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Innovation Development Co.,
Ltd.
Shenzhen Bay Technology
Property service fee 19,066,931.69 28,502,992.03
Development Co., Ltd.
Shenzhen Bay Area Urban
Construction and Property service fee 1,323,523.65 986,445.32
Development Co., Ltd.
Shenzhen Xiangmihu
International Exchange Center Property service fee 1,211,630.16
Development Co., Ltd.
Shenzhen Infinova Limited Property service fee 117,241.67
Guosen Securities Co., Ltd. Property service fee 0.00 766,960.89
ShenZhen Special Economic
Zone Real Estate & Properties Property service fee 1,326,301.15 4,269,035.25
(Group) Co., Ltd.
Notes on acquisition of goods and provision/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/contra entrustee/ Type Start date Due date Pricing basis
this Reporting
ctee contractor
Period
Shenzhen ShenZhen
Shentou Properties &
Investment 6 November 5 November
Property Resources Market pricing 28,011,961.98
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:
146
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
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 693,203.39 0.00
Hotel Management Co., Ltd.
Shenzhen Bay Wanli Hotel
Branch of Shenzhen Wuzhou Investment Properties 957,280.87 0.00
Hotel Management Co., Ltd.
The Company was lessee:
Unit: RMB
Rental expenses of Variable lease
short-term lease payments not
Income expense of
simplified treated included in the Increased right-of-
Paid rent lease liabilities
and low-value measurement of use assets
Name Type of undertaken
asset lease (if lease liabilities (if
of assets applicable) applicable)
lessor leased The The The The The
Reporti same Reporti same Reporti same Reporti same Reporti same
ng period ng period ng period ng period ng period
Period of last Period of last Period of last Period of last Period of last
year year year year year
Shenzh
en
Shento
u Investm
Propert ent 132,734 139,671 57,353. 47,617. 1,801,3
y Properti .00 .30 26 16 00.23
Develo es
pment
Co.,
Ltd.
Shenzh
en Hi-
tech
Zone Investm
Develo ent 54,243. 4,765.0 1,011.8 295,875
0.00
pment Properti 00 4 9 .35
Constru es
ction
Co.,
Ltd.
Notes:
147
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
(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
5,059,171.07 5,087,564.50
personnel
(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
Accounts
Shenzhen Bay 86,462,569.52 2,529,166.58 112,281,758.95 3,368,452.77
Receivable
148
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Technology
Development Co.,
Ltd.
Hebei Shenbao
Investment
3,059,281.37 91,778.44 2,221,584.63 66,647.54
Development Co.,
Ltd.
Shenzhen Hi-tech
Zone Development
2,220,270.98 81,367.65 2,038,315.65 75,908.99
Construction Co.,
Ltd.
Shenzhen
Investment 47,832,951.11 1,422,392.91 494,774.12 20,087.62
Holdings Co., Ltd.
Shenzhen Shentou
Property
3,618,388.27 108,551.65
Development Co.,
Ltd.
Shenzhen Bay
(Baoding)
Innovation 28,814.40 846.43 28,814.40 864.43
Development Co.,
Ltd.
Shenzhen Bay
Area Urban
Construction and 90,000.00 2,700.00
Development Co.,
Ltd.
Shenzhen
Convention &
Exhibition Center 1,281,690.86 38,021.73 1,170,565.00 48,987.95
Management Co.,
Ltd.
Shenzhen Hong
Kong Science and
Technology
Innovation 101,072.00 3,032.16
Cooperation Zone
Development Co.,
Ltd.
Shenzhen Total
800,539.46 24,016.18 395,202.42 11,856.07
Logistics Service
149
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Co., Ltd.
Shenzhen Large
Industrial Zone
(Shenzhen Export
Processing Zone) 52,000.00 41,600.00 52,000.00
Development
Management
Group Co., Ltd.
Shenzhen
Shenfubao (Group)
Tianjin Industrial 38,331.15 1,149.93 38,331.15
Development Co.,
Ltd.
Shenzhen
Shenfubao (Group)
Tianjin Investment 8,450,758.68 253,522.76 4,700,758.68
Development Co.,
Ltd.
Shenzhen
Shenfubao (Group) 2,696,163.04 58,852.89 2,458,264.34
Co., Ltd.
Shenzhen Bay
Area International 14,946,000.00 448,380.00
Hotel Co., Ltd.
Shenzhen Bay
Wanli Hotel
Branch of
230,167.20 6,905.02
Shenzhen Wuzhou
Hotel Management
Co., Ltd.
Shenzhen Bay
Wanyi Hotel
Branch of
166,672.80 5,000.18
Shenzhen Wuzhou
Hotel Management
Co., Ltd.
Total 168,266,210.57 5,003,000.70 129,689,829.61 3,707,089.18
Shenzhen
Prepayments Shenfubao 42,726,200.00
(Group) Co., Ltd.
Total 42,726,200.00
150
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Shenzhen Xinhai
Other Receivables 401,499,990.18 6,044,999.71 401,499,990.18 6,044,999.71
Holding Co., Ltd.
Shenzhen Xinhai
Rongyao Real
Estate 355,026,166.83 10,650,785.01 355,026,166.83 10,650,785.01
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 11,809,060.35 419,496.75
Development Co.,
Ltd.
Shenzhen Qianhai
Advanced
10,720,575.27 321,617.26 8,430,575.27 252,917.26
Information
Service Co., Ltd.
Shenzhen Tianjun
10,000,000.00 10,000,000.00
Industrial Co., Ltd.
Shenzhen
Investment 685,740.90 94,936.15 109,148.44 46,829.92
Holdings Co., Ltd.
Shenzhen Hi-tech
Zone Development
20,420.00 612.60 20,420.00 612.60
Construction Co.,
Ltd.
Shenzhen Shentou
Property
81,233.00 81,233.00 81,233.00 81,233.00
Development Co.,
Ltd.
ShenZhen Special
Economic Zone
Real Estate & 20,722,314.85 20,722,314.85
Properties (Group)
Co., Ltd.
Shenzhen
Shenfubao 8,345,544.85 75,477.88 33,568,863.10
(Group) Co., Ltd.
China Shenzhen
Foreign Trade 1,609,160.24 1,410,306.11
(Group) Co., Ltd.
Total 822,267,470.72 19,436,422.61 844,425,342.38 19,244,138.50
151
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
(2) Accounts Payable
Unit: RMB
Project Related party Closing book balance Beginning carrying amount
Shenzhen Shentou Property
Accounts payable 715,243.51 887,042.50
Development Co., Ltd.
Shenzhen Hi-tech Zone Development
202,720.85 252,198.81
Construction Co., Ltd.
Shenzhen General Institute of
Architectural Design and Research Co., 1,138,999.82
Ltd.
Total 917,964.36 2,278,241.13
Shenzhen Shentou Property
Other payables 6,118,414.61 10,874,467.40
Development Co., Ltd.
Shenzhen Bay Technology Development
111,815,469.83 90,354,189.38
Co., Ltd.
Shenzhen Bay Area Urban Construction
360,752.18 360,752.18
and Development Co., Ltd.
Shenzhen Real Estate Jifa Warehousing
42,296,665.14 38,796,665.14
Co., Ltd.
Shenzhen Tian’an International Mansion
Property Administration Co., Ltd. 5,214,345.90 5,214,345.90
(Tian’an Company)
Shenzhen Investment Holdings Co., Ltd. 769,277.91
Shenzhen Infinova Limited 144,219.02 144,219.02
Guosen Securities Co., Ltd. 228,813.86
Shenzhen Bay Wanyi Hotel Branch of
Shenzhen Wuzhou Hotel Management 535,734.00 535,734.00
Co., Ltd.
Shenzhen Bay Wanli Hotel Branch of
Shenzhen Wuzhou Hotel Management 654,786.00 654,786.00
Co., Ltd.
ShenZhen Special Economic Zone Real
19,667,670.00
Estate & Properties (Group) Co., Ltd.
Shenzhen Free Trade Zone Life Service
4,850.00 4,850.00
Co., Ltd.
ShenZhen FuBao Industrial Park
248,682.00 192,080.00
Operation Co., Ltd.
Shenzhen Shenfubao (Group) Co., Ltd. 689,058.24 146,410.00
Total 187,750,646.92 148,276,590.79
152
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
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
Item Reporting period Same period of last year
Large amount contract signed but hasn’t been recognized
1,034,954,205.35 204,632,733.45
in financial statements
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 subsequ ently
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.
153
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
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. In the execution stage, the court held that the both parties were obligated to pay each other
and, upon deduction of the objects of the two cases, Jinhailian would still need to pay Cai Baolin RMB393,672.31 together with
execution fees amounting to RMB16,890.
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 has been 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 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.
154
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
(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.
Later, as the court failed to serve documents to Zhang Zhulin and Chen Saifeng, the court session was rescheduled from the original
date in late April to 9:30 a.m. on 31 August.
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 30 June 2022, the balance of the deposit not discharged with guarantee
was RMB64,997,757.03, which would be discharged when the mortgage loans are paid off.
(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
155
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
2. Distribution of Profit
Unit: RMB
3. Sales Return
4. Notes to Other Events after Balance Sheet Date
XVI. Other Significant Events
1. The Accounting Errors Correction in Previous Period
(1) Retrospective Restatement
Unit: RMB
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:
156
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
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
Property Offset among
Item Real estate Leasing business Total
management segment
Revenue 1,156,147,570.46 778,342,112.81 53,810,156.97 1,988,299,840.24
Operating cost 334,703,848.75 674,642,686.47 59,306,048.10 1,068,652,583.32
Total assets 12,697,711,749.98 1,609,237,951.57 859,361,089.26 15,166,310,790.81
Total liabilities 9,398,253,414.85 1,299,419,757.57 292,091,111.61 10,989,764,284.03
(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
Carrying balance Bad debt provision Carrying balance Bad debt provision
Categor
Withdra Carrying Withdra Carrying
y
Proporti wal value Proporti wal value
Amount Amount Amount Amount
on proporti on proporti
on on
Account
96,702,2 96,702,2 96,702,2 96,702,2
s 96.84% 100.00% 97.65% 100.00%
69.40 69.40 69.40 69.40
receivab
157
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
le
withdra
wal of
Bad debt
provisio
n
separatel
y
accrued
Of
which:
Account
s
receivab
le
withdra 3,158,54 143,932. 3,014,60 2,324,73 100,760. 2,223,97
3.16% 4.56% 2.35% 4.33%
wal of 0.72 48 8.24 5.49 83 4.66
bad debt
provisio
n of by
group
Of
which:
99,860,8 96,846,2 3,014,60 99,027,0 96,803,0 2,223,97
Total 100.00% 96.98% 100.00% 97.75%
10.12 01.88 8.24 04.89 30.23 4.66
Bad debt provision separately accrued: RMB96,702,269.40
Unit: RMB
Ending balance
Name
Carrying balance Bad debt provision Withdrawal proportion Withdrawal reason
Shenzhen Jiyong
Involved in lawsuit and
Properties & Resources
93,811,328.05 93,811,328.05 100.00% with no executable
Development
property
Company
Shenzhen Tewei Long aging and
2,836,561.00 2,836,561.00 100.00%
Industry Co., Ltd. expected unrecoverable
Luohu District
Economic Long aging and
54,380.35 54,380.35 100.00%
Development expected unrecoverable
Company
Total 96,702,269.40 96,702,269.40
Withdrawal of bad debt provision by group: RMB143,932.48
158
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Unit: RMB
Ending balance
Name
Carrying balance Bad debt provision Withdrawal proportion
Within 1 year (including 1
2,756,828.14 79,339.03 3.00%
year)
1-2 years (including 2 years) 279,601.63 27,960.16 10.00%
2-3 years (including 3 years) 122,110.95 36,633.29 30.00%
Total 3,158,540.72 143,932.48
Notes to the determination basis for the group:
Refer to Part X Financial Statements for details
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) 2,756,828.14
1 to 2 years 279,601.63
2 to 3 years 122,110.95
Over 3 years 96,702,269.40
Over 5 years 96,702,269.40
Total 99,860,810.12
(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
100,760.83 43,171.65 143,932.48
withdrawn by
portfolio
159
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Total 96,803,030.23 43,171.65 96,846,201.88
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
Verification Whether occurred
Reason for
Name of entity Nature Amount verified procedures because of related-
verification
performed party 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
Ending balance of bad debt
Name of entity Ending balance balance of accounts
provision
receivable
Shenzhen Jiyong Properties &
93,811,328.05 93.94% 93,811,328.05
Resources Development Company
Shenzhen Tewei Industry Co., Ltd. 2,836,561.00 2.84% 2,836,561.00
China Pacific Property Insurance Co.,
1,305,420.00 1.31% 39,162.60
Ltd.
Shenzhen Feihuang Industrial Co.,
769,919.05 0.77% 23,097.57
Ltd.
Shenzhen Lehui Party Catering
583,269.40 0.58% 55,463.73
Management Co., Ltd.
Total 99,306,497.50 99.44%
(5) Accounts Receivable Derecognized due to the Transfer of Financial Assets
(6) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement of Accounts Receivable
Other notes:
2. Other Receivables
Unit: RMB
160
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Item Ending balance Beginning balance
Interests receivable 385,423,194.45 0.00
Dividends receivable 0.00 0.00
Other Receivables 4,778,856,969.07 2,412,506,681.28
Total 5,164,280,163.52 2,412,506,681.28
(1) Interest Receivable
1) Category of Interest Receivable
Unit: RMB
Item Ending balance Beginning balance
Entrust loans 385,423,194.45
Total 385,423,194.45 0.00
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
Total 0.00 0.00
2) Significant Dividends Receivable Aging over 1 Year
Unit: RMB
Whether occurred
Project (or investee) Ending balance Aging Reason impairment and its
judgment basis
161
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
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
Guarantee deposit 2,240,927.00 2,328,581.00
External intercourse funds 23,216,234.57 56,305,486.73
Internal intercourse funds 4,785,968,996.64 2,386,210,528.77
Total 4,811,426,158.21 2,444,844,596.50
2) Withdrawal of Bad Debt Provision
Unit: RMB
Stage 1 Stage 2 Stage 3
Expected loss in the Expected credit losses
Bad debt provision Expected credit loss of duration (credit for the entire duration Total
the next 12 months impairment not (with credit
occurred) impairment)
Balance as at 1 January
8,844,588.14 23,493,327.08 32,337,915.22
2022
Balance of 1 January
2022 in the Current
Period
Withdrawal of the
43,181.20 188,092.72 231,273.92
Current Period
Balance as at 30 June
8,887,769.34 23,681,419.80 32,569,189.14
2022
Changes of carrying amount with significant amount changed of loss provision in the Current Period
□Applicable Not applicable
Disclosure by aging
Unit: RMB
Aging Ending balance
Within 1 year (including 1 year) 4,231.63
1 to 2 years 3,880.01
2 to 3 years 20,880.00
Over 3 years 32,540,197.50
162
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
4 to 5 years 40,000.00
Over 5 years 32,500,197.50
Total 32,569,189.14
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
Bad debt
provision
23,493,327.08 188,092.72 23,681,419.80
withdrawn
separately
Bad debt
provision
8,844,588.14 43,181.20 8,887,769.34
withdrawn by
portfolio
Total 32,337,915.22 231,273.92 32,569,189.14
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
Verification Whether occurred
Reason for
Name of entity Nature Amount verified procedures because of related-
verification
performed party 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
Proportion to Ending balance of
Name of entity Nature Ending balance Aging
ending balance of bad debt provision
163
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
total other
receivables%
Dongguan Wuhe
Intercourse funds Within 1 year
Real Estate Co., 2,113,760,170.00 43.93%
to subsidiary (including 1 year)
Ltd.
Shenzhen
Guangming Wuhe Intercourse funds Within 1 year
1,621,000,000.00 33.69%
Real Estate Co., to subsidiary (including 1 year)
Ltd.
Yangzhou Wuhe
Intercourse funds Within 1 year
Real Estate Co., 576,893,203.49 11.99%
to subsidiary (including 1 year)
Ltd.
Shum Yip
Properties Intercourse funds
105,126,625.45 Over 5 years 2.18% 7,199,477.67
Development Co., to subsidiary
Ltd.
SZPRD Xuzhou
Dapeng Real
Intercourse funds Within 1 year
Estate 37,888,221.89 0.79%
to subsidiary (including 1 year)
Development Co.,
Ltd.
Total 4,454,668,220.83 92.58% 7,199,477.67
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
1,402,829,880. 1,334,465,880. 1,127,829,880. 1,059,465,880.
Investment to 68,364,000.00 68,364,000.00
39 39 39 39
164
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
subsidiaries
Investment to
joint ventures
70,203,829.89 18,983,614.14 51,220,215.75 69,344,295.51 18,983,614.14 50,360,681.37
and associated
enterprises
1,473,033,710. 1,385,686,096. 1,197,174,175. 1,109,826,561.
Total 87,347,614.14 87,347,614.14
28 14 90 76
(1) Investment to Subsidiaries
Unit: RMB
Increase/decrease
Beginning Ending Ending
Withdrawal
balance balance balance of
Investee Additional Investment of
(carrying Others (carrying depreciation
investment reduced impairment
value) value) reserve
provision
Shenzhen
Huangcheng 35,552,671.9 35,552,671.9
Real Estate 3 3
Co., Ltd.
Shenzhen
Wuhe
Industry 44,950,000.0 44,950,000.0
Investment 0 0
Development
Co., Ltd.
SZPRD
Yangzhou
50,000,000.0 50,000,000.0
Real Estate
0 0
Development
Co., Ltd.
Dongguan
ITC
Changsheng 20,000,000.0 20,000,000.0
Real Estate 0 0
Development
Co., Ltd.
Shenzhen
International
195,337,851. 195,337,851.
Trade Center
23 23
Property
Management
165
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Co., Ltd.
Shenzhen
Property
Engineering
and 3,000,000.00 3,000,000.00
Construction
Supervision
Co., Ltd.
SZPRD
Commercial 63,509,120.3 63,509,120.3
Operation 2 2
Co., Ltd.
Zhanjiang
Shenzhen
Real Estate 2,530,000.00
Development
Co., Ltd.
Shum Yip
Properties 15,834,000.0
Development 0
Co., Ltd.
SZPRD
Xuzhou
Dapeng Real 50,000,000.0
Estate 0
Development
Co., Ltd.
Shenzhen
Rongyao
508,000,000. 508,000,000.
Real Estate
00 00
Development
Co., Ltd.
SZPRD
Urban 119,116,236. 41,641,757.6 77,474,479.2
Renewal Co., 91 2 9
Ltd.
Dongguan
Wuhe Real 20,000,000.0 30,000,000.0 50,000,000.0
Estate Co., 0 0 0
Ltd.
ShenzhenGu 50,000,000.0 50,000,000.0
angmingWuh 0 0
166
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
e Real Estate
Co., Ltd.
Shenzhen
Wuhe Urban 236,641,757. 236,641,757.
Renewal Co., 62 62
Ltd.
1,059,465,88 316,641,757. 41,641,757.6 1,334,465,88 68,364,000.0
Total
0.39 62 2 0.39 0
(2) Investment to Joint Ventures and Associated Enterprises
Unit: RMB
Increase/decrease
Gains
and Cash Ending
Beginni Adjust Withdra
losses bonus Ending balance
ng Additio ment of wal of
Investe Investm recogni Other or balance of
balance nal other impair
e ent zed equity profits Others (carryin depreci
(carryin investm compre ment
reduced under changes announ g value) ation
g value) ent hensive provisi
the ced to reserve
income on
equity issue
method
I. Joint ventures
Shenzh
en Real
Estate
Jifa 43,516, 784,773 44,301,
Wareho 665.12 .86 438.98
using
Co.,
Ltd.
Shenzh
en
Tian’an
Internat
ional
Mansio
n 6,844,0 74,760. 6,918,7
Propert 16.25 52 76.77
y
Admini
stration
Co.,
Ltd.
(Tian’a
167
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
n
Compa
ny)
Subtota 50,360, 859,534 51,220,
l 681.37 .38 215.75
II. Associated enterprises
Shenzh
en
Wufang
Cerami 18,983,
cs 614.14
Industri
al Co.,
Ltd.
Subtota 18,983,
l 614.14
50,360, 51,220, 18,983,
Total
681.37 215.75 614.14
(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
Main business 23,251,320.73 16,550,326.74 31,762,623.21 17,990,848.30
Others 8,338,349.86 659,988.00 10,538,272.14 659,988.00
Total 31,589,670.59 17,210,314.74 42,300,895.35 18,650,836.30
Relevant information of revenue:
Unit: RMB
Category of contracts Segment 1 Segment 2 Total
Product categories
Of which:
House leasing business 31,589,670.59 31,589,670.59
Classified by operating
region
Of which:
Shenzhen 31,589,670.59 31,589,670.59
By types of market or
168
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
customers
Of which:
Types of contracts
Of which:
By the time of
transferring goods
Of which:
By contract term
Of which:
By marketing channel
Of which:
Total 31,589,670.59 31,589,670.59
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 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
859,534.38 3,218,483.17
accounted by equity method
Interest income from entrusted loans 76,724,135.18 59,818,841.72
Total 77,583,669.56 63,037,324.89
169
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
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 non-
-41,452.49
current assets
Government grants recorded in the
current profit or loss (except for those
acquired in the ordinary course of
Mainly subsidies received for staying on
company's business, in line with national 1,115,174.40
the job and epidemic prevention
policies and regulations, or granted
continuously according to certain
standard quotas or amounts)
Capital occupation charges on non-
financial enterprises that are charged to -100,594.95
current profit or loss
Current profit or loss on subsidiaries
obtained in business combinations
involving enterprises under common -6,933,601.34
control from the period-beginning to
combination dates, net
Other non-operating income and expense Mainly confiscated income and default
1,128,481.62
other than the above fine
Less: Income tax effects 554,987.92
Non-controlling interests effects 461,472.66
Total -5,848,453.34 --
Others that meets the definition of non-recurring gain/loss:
□Applicable Not applicable
No such cases in the Reporting Period.
Explain the reasons if the Company classifies any extraordinary gain/loss item mentioned in the Explanatory Announcement No. 1 on
Information Disclosure for Companies Offering Their Securities to the Public—Non-recurring Gains and Losses as a recurrent gain/loss
item
□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
5.40% 0.4208 0.4208
ordinary shareholders of the
170
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2022
Company
Net profit attributable to
ordinary shareholders of the
5.53% 0.4306 0.4306
Company after deduction of
non-recurring profit or loss
3. Differences between Accounting Data under Domestic and Overseas Accounting Standards
(1) Differences of Net Profit and Net Assets Disclosed in Financial Reports Prepared under International and Chinese
Accounting Standards
□Applicable Not applicable
(2) Differences of Net profit and Net assets Disclosed in Financial Reports Prepared under Overseas 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
171
