ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
SHENZHEN PROPERTIES & RESOURCES
DEVELOPMENT (GROUP) LTD.
ANNUAL REPORT 2023
(Announcement No. 2024-06)
March 2024
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
ANNUAL REPORT 2023
Part I Important Notes, Table of Contents and Definitions
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of ShenZhen Properties & Resources Development
(Group) Ltd. (hereinafter referred to as the “Company”) hereby guarantee the factuality,
accuracy and completeness of the contents of this Report and its summary, and shall be
jointly and severally liable for any misrepresentations, misleading statements or material
omissions therein.
Liu Shengxiang, the Company’s legal representative, Cai Lili, the Company’s head of
financial affairs, and Cai Kelin, head of the Company’s financial department (equivalent to
financial manager) hereby guarantee that the Financial Statements carried in this Report are
factual, accurate and complete.
All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.
The Company has described in detail in this Report the possible risks facing it, along with
countermeasures. Please refer to the section headed “Prospects” of “Part III Management
Discussion and Analysis” of this Report.
The Board has approved a final dividend plan as follows: based on the share capital of
595,979,092 shares, a cash dividend of RMB3.12 (tax inclusive) per 10 shares is to be
distributed to the shareholders, with no bonus issue from either profit or capital reserves.
This Report and its summary have been prepared in Chinese and translated into English.
Should there be any discrepancies or misunderstandings between the two versions, the
Chinese versions shall prevail.
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Table of Contents
Part I Important Notes, Table of Contents and Definitions........................................................... 2
Part II Corporate Information and Key Financial Information................................................... 6
Part III Management Discussion and Analysis..............................................................................12
Part IV Corporate Governance.......................................................................................................42
Part V Environmental and Social Responsibility.......................................................................... 67
Part VI Significant Events............................................................................................................... 70
Part VII Share Changes and Shareholder Information................................................................84
Part VIII Preferred Shares.............................................................................................................. 93
Part IX Bonds................................................................................................................................... 94
Part X Financial Statements............................................................................................................95
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Documents Available for Reference
I. The financial statements with the signatures and stamps of the Company’s legal representative,
head of financial affairs and head of the financial department;
II. The original of the Independent Auditor’s Report with the stamp of the CPA firm and the
signatures and stamps of the certified public accounts; and
III. The originals of all the Company’s documents and announcements disclosed to the public in the
Reporting Period.
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Definitions
Term Definition
ShenZhen Properties & Resources Development (Group) Ltd. and its
The “Company”, the “Group”, “SZPRD” or “we”
consolidated subsidiaries, except where the context otherwise requires
SIHC Shenzhen Investment Holdings Co., Ltd.
Huangcheng Real Estate Shenzhen Huangcheng Real Estate Co., Ltd.
Dongguan Company Dongguan ITC Changsheng Real Estate Development Co., Ltd.
Xuzhou Company SZPRD Xuzhou Dapeng Real Estate Development Co., Ltd.
Yangzhou Company SZPRD Yangzhou Real Estate Development Co., Ltd.
Wuhe Urban Renewal Shenzhen Wuhe Urban Renewal Co., Ltd.
Rongyao Real Estate Shenzhen Rongyao Real Estate Development Co., Ltd.
ITC Property Management Shenzhen International Trade Center Property Management Co., Ltd.
ITC Technology Park Shenzhen ITC Technology Park Service Co., Ltd.
Guomaomei Life Shenzhen Guomaomei Life Service Co., Ltd.
Commercial Operation Company Shenzhen SZPRD Commercial Operation Co., Ltd.
Guomao Catering Shenzhen Guomao Catering Co., Ltd.
Supervision Company Shenzhen Property Engineering and Construction Supervision Co., Ltd.
Wuhe Company Shenzhen Wuhe Industry Investment Development Co., Ltd.
Shenzhen Property Management Shenzhen Property Management Co., Ltd.
Foreign Trade Property Management Shenzhen Foreign Trade Property Management Co., Ltd.
Shenfubao Property Development Shenzhen Shenfubao Property Development Co., Ltd.
Hydropower Company Shenzhen Shenfubao Hydropower Municipal Service Co., Ltd.
Security Service Company Shenzhen Free Trade Zone Security Service Co., Ltd.
FMC Shenzhen Facility Management Community Technology Co., Ltd.
Expressed in the Chinese currency of Renminbi, expressed in tens of
RMB, RMB’0,000, RMB’00,000,000
thousands of Renminbi, expressed in hundreds of millions of Renminbi
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Part II Corporate Information and Key Financial Information
I Corporate Information
Stock name PRD, PRD-B Stock code 000011, 200011
Previous stock name (if any) N/A
Stock exchange for stock
Shenzhen Stock Exchange
listing
Company name in Chinese 深圳市物业发展(集团)股份有限公司
Abbr. 深物业集团
Company name in English (if
ShenZhen Properties & Resources Development (Group) Ltd.
any)
Abbr. (if any) SZPRD
Legal representative Liu Shengxiang
39/F and 42/F, International Trade Center, Renmin South Road, Luohu District, Shenzhen,
Registered address
Guangdong Province, P.R.China
Zip code 518014
Past changes of registered
N/A
address
16/F, 20/F, 39/F and 42/F, International Trade Center, Renmin South Road, Luohu District,
Office address
Shenzhen, Guangdong Province, P.R.China
Zip code 518014
Company website www.szwuye.com.cn
Email address 000011touzizhe@szwuye.com.cn
II Contact Information
Board Secretary Securities Representative
Name Zhang Gejian Ding Minghua and Chen Qianying
20/F, International Trade Center, Renmin South 39/F, International Trade Center, Renmin South Road,
Address Road, Luohu District, Shenzhen, Guangdong Luohu District, Shenzhen, Guangdong Province,
Province, P.R.China P.R.China
Tel. 0755-82211020 0755-82211020
Fax 0755-82210610、82212043 0755-82210610、82212043
Email address 000011touzizhe@szwuye.com.cn 000011touzizhe@szwuye.com.cn
III Media for Information Disclosure and Place where this Report Is Lodged
Stock exchange website where this Report is disclosed The Shenzhen Stock Exchange: http://www.szse.cn
For A-stock investors: Securities Times
Media and website where this Report is disclosed For B-stock investors: Ta Kung Pao (HK)
www.cninfo.com.cn
Board Office, 39/F, International Trade Center, Renmin South Road, Luohu
Place where this Report is lodged
District, Shenzhen, Guangdong Province, P.R.China
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
IV Change to Company Registered Information
Unified social credit code No change
Change to principal activity of the
No change
Company since going public (if any)
On 29 September 2004, the State-Owned Assets Supervision and Administration
Commission of Shenzhen Municipality (“SASAC Shenzhen”) decided to incorporate
Shenzhen Investment Holdings Co., Ltd. (“SIHC”) to include Shenzhen Investment
Management Co., Ltd. (“SIM”, the former controlling shareholder of the Company)
and Shenzhen Construction Investment Holdings Corporation (“SCIHC”). SCIHC and
SIM hold 323,796,324 and 56,582,573 shares respectively in the Company,
Every change of controlling shareholder representing a combined stake of 63.82%.
since incorporation (if any)
On 19 October 2018, the Company was notified by its actual controlling shareholder
SIHC that it had received the Confirmation of Securities Transfer Registration from
China Securities Depository and Clearing Co., Ltd. (Shenzhen branch), marking the
completion of the equity transfer to SIHC. As such, SIHC has become the controlling
shareholder of the Company.
The controlling shareholder remained unchanged during the Reporting Period.
V Other Information
The independent audit firm hired by the Company:
Name Baker Tilly China Certified Public Accountants LLP
16A, B, C, D, E and F, as well as 18A1, D2, E and F2, SZMD Finance Center, 9 Pengcheng
Office address First Road, Fuxin Community, Lotus Street, Futian District, Shenzhen, Guangdong
Province, China
Accountants writing signatures Chen Zihan, and Zhong Qinfang
The independent sponsor hired by the Company to exercise constant supervision over the Company in the Reporting Period:
□ Applicable Not applicable
The independent financial advisor hired by the Company to exercise constant supervision over the Company in the Reporting
Period:
□ Applicable Not applicable
VI Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
Yes □ No
Reason for retrospective restatement:
Change in accounting policy
2023-over-2022
2022 2021
2023 change (%)
Before Restated Restated Before Restated
Operating 2,965,117,025. 3,708,669,046. 3,708,669,046. 4,911,120,528. 4,911,120,528.
-20.05%
revenue (RMB) 04 85 85 33 33
Net profit
1,025,380,909. 1,027,457,653.
attributable to 464,014,492.11 537,664,698.69 537,291,574.13 -13.64%
the listed 03 96
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
company’s
shareholders
(RMB)
Net profit
attributable to
the listed
company’s
-
shareholders 390,440,612.64 390,067,488.08 -144.19% 983,778,096.90 985,854,841.83
before 172,360,115.90
exceptional
gains and losses
(RMB)
Net cash
generated - -
from/used in -
105,233,103.86 105,233,103.86 -350.96% 1,828,979,752. 1,828,979,752.
operating 264,092,984.33
activities 45 45
(RMB)
Basic earnings
per share 0.7786 0.9022 0.9015 -13.63% 1.7205 1.7240
(RMB/share)
Diluted
earnings per
0.7786 0.9022 0.9015 -13.63% 1.7205 1.7240
share
(RMB/share)
Weighted
average return 10.26% 12.37% 12.36% -2.10% 24.49% 25.19%
on equity (%)
Change of 31
December 2023
31 December 31 December 2022 over 31 31 December 2021
2023 December 2022
(%)
Before Restated Restated Before Restated
Total assets 16,988,062,068 15,800,287,610 15,824,788,371 14,835,846,843 14,859,964,860
7.35%
(RMB) .09 .40 .56 .78 .88
Equity
attributable to
the listed 4,661,810,328. 4,412,555,547. 4,414,259,168. 4,590,052,057. 4,614,170,074.
5.61%
company’s 75 97 34 75 85
shareholders
(RMB)
Reason for change in accounting policy and correction of accounting error:
The relevant financial statement items of 2022 and 2023 were retrospectively restated as per the Accounting Standard No. 16 for
Business Enterprises and the Accounting Standard No. 18—Income Tax for Business Enterprises.
Indicate by tick mark whether the lower of the net profit attributable to the listed company’s shareholders before and after
exceptional gains and losses was negative for the last three accounting years, and the latest independent auditor’s report indicated
that there was uncertainty about the Company’s ability to continue as a going concern.
□ Yes No
Indicate by tick mark whether the lower of the net profit attributable to the listed company’s shareholders before and after
exceptional gains and losses was negative.
Yes □ No
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Item 2023 2022 Remark
Business revenue unrelated to
the principal operations was
excluded, mainly income from
Operating revenue (RMB) 2,965,117,025.04 3,708,669,046.85 compensation for temporary
relocation for the Chuanbu
Street scaffolding project and
consultancy income
Business revenue unrelated to
the principal operations was
excluded, mainly income from
Amount deducted from
17,825,350.04 91,555,827.12 compensation for temporary
operating revenue (RMB)
relocation for the Chuanbu
Street scaffolding project and
consultancy income
Business revenue unrelated to
the principal operations was
excluded, mainly income from
Operating revenue after
2,947,291,675.00 3,617,113,219.73 compensation for temporary
deduction (RMB)
relocation for the Chuanbu
Street scaffolding project and
consultancy income
VII Accounting Data Differences under China’s Accounting Standards for Business
Enterprises (CAS) and International Financial Reporting Standards (IFRS) and Foreign
Accounting Standards
1. Net Profit and Equity under CAS and IFRS
□ Applicable Not applicable
No difference for the Reporting Period.
2. Net Profit and Equity under CAS and Foreign Accounting Standards
□ Applicable Not applicable
No difference for the Reporting Period.
VIII Key Financial Information by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 411,469,619.15 1,493,995,013.70 521,861,580.85 537,790,811.34
Net profit attributable
to the listed company’s 13,216,750.95 207,686,693.68 10,448,055.65 232,662,991.83
shareholders
Net profit attributable
to the listed company’s
shareholders before 13,335,100.35 207,509,610.79 11,244,393.64 -404,449,220.68
exceptional gains and
losses
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Net cash generated
from/used in operating -419,149,918.25 -160,871,739.90 -359,617,394.77 676,245,131.34
activities
Indicate by tick mark whether any of the quarterly financial data in the table above or their summations differs materially from
what have been disclosed in the Company’s quarterly or interim reports.
□ Yes No
IX Exceptional Gains and Losses
Applicable □ Not applicable
Unit: RMB
Item 2023 2022 2021 Note
Receipt of
Gain or loss on disposal of non-current assets
payment for
(inclusive of impairment allowance write- 702,127,250.52 175,644,543.02 -62,170.29
offs) equity
transfer
Government grants recognised in current
profit or loss (exclusive of those that are
closely related to the Company's normal
business operations and given in accordance 7,802,977.21 10,633,227.34 23,923,655.59
with defined criteria and in compliance with
government policies, and have a continuing
impact on the Company's profit or loss)
Gain or loss on fair-value changes in financial
assets and liabilities held by a non-financial
enterprise, as well as on disposal of financial
1,300.91
assets and liabilities (exclusive of the
effective portion of hedges that arise in the
Company’s ordinary course of business)
Capital occupation charges on a non-financial
enterprise that are charged to current profit or 132,289.35
loss
Current profit or loss on subsidiaries obtained
in business combinations involving
9,596,148.16 21,251,005.70
enterprises under common control from the
period-beginning to combination dates, net
Gain or loss on contingencies that are
unrelated to the Company's normal business 70,578.79
operations
Non-operating income and expense other than
-2,773,489.32 2,448,235.99 2,915,682.88
the above
Over-
Other gains and losses that meet the deduction in
5,684,844.32 277,896.27 169,262.03
definition of exceptional gain/loss VAT
calculation
Less: Income tax effects 76,182,752.47 51,525,180.31 6,749,597.21
Non-controlling interests effects (net of
284,222.25 54,953.47 -154,973.43
tax)
Total 636,374,608.01 147,224,086.05 41,602,812.13 --
Particulars about other gains and losses that meet the definition of exceptional gain/loss:
Applicable □ Not applicable
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
The preferential policy in relation to over-deduction in VAT calculation expired on 31 December 2023. This income does not
continue to impact the Company’s gains and losses.
No such cases for the Reporting Period.
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the Explanatory Announcement
No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss Items:
□ Applicable Not applicable
No such cases for the Reporting Period.
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Part III Management Discussion and Analysis
I Industry Overview for the Reporting Period
(I) Macro-economic situation and industry development status
The international and domestic situations in 2023 were fraught with uncertainties, with the economy in a sluggish recovery and the
traditional real estate market under sustained pressure. In order to mitigate risks in the real estate sector, there has been a gradual
shift in policy towards a strategy of "supporting and leveraging" since the Meeting of the Political Bureau of the CPC Central
Committee in July, which acknowledged the new dynamics in the supply-demand relationship in the Chinese real estate market.
During the Reporting Period, central policy measures transitioned from stability to relaxation, with a specific focus on promoting
the ''Three Major Projects" of urban village transformation, affordable housing, and dual-use infrastructure construction. The
implementation of financial policies to alleviate supply-side pressures persisted, resulting in a relief of funding constraints for real
estate developers. Policies aimed at supporting residents in buying homes, such as reduced down payments, lowered interest rates,
and measures allowing property recognition without mortgage verification, were introduced to stabilize demand on the consumer
side. Continuous optimization of housing policies by government departments at all levels has been instrumental in ensuring the
stable functioning of the real estate market, thereby creating a more accommodating policy environment.
The year unfolded with the sales market generally mired in torpor, as sales volume, development investment, and land
supply and demand all dwindled. According to the data from the National Bureau of Statistics, the sales area of commercial
housing throughout 2023 was 1,117.35 million square meters nationwide, a decrease of 8.5% from the previous year. Furthermore,
sales revenue plummeted to RMB11,662.2 billion, down by 6.5%. The adjustment trend in the new housing market remained
unchanged, with the sustainability of policy effects in core cities proving insufficient. As the market shifts towards trading volume
for price, the secondary housing market in key cities outperformed that of new housing. In the period from January to November,
there was a year-on-year decrease of about 5% in the transaction area of new residential properties in the top 100 cities,
representing the lowest absolute level for the same period since 2016.
The total investment of the top 100 investors hit a new low, with no significant improvement observed in overall investment
sentiment. Real estate investment in 2023 followed the declining trend seen in 2022, with national real estate development
investment amounting to RMB11,091.3 billion, reflecting a 9.6% decrease from the previous year. The decrease in investment
scale indicates a gradual reduction in incremental funds in the real estate sector, leading to diminishing industry attractiveness and
the gradual exit of existing stock real estate enterprises. The housing new construction area in 2023 amounted to 953.76 million
square meters, representing a 20.4% decline. Real estate development companies completed construction on a total area of
8,383.64 million square meters of houses throughout the year, reflecting a 7.2% decline from the previous year. The housing
completion area reached 998.31 million square meters, representing a 17.0% increase.
Land acquisition decelerates as supply and demand decrease to a near-decade low. Since the end of last year onwards, the
land market has continued to experience a downturn, prompting local governments to exercise greater caution in land supply, with
enterprises showing a notable shrinkage in their land acquisition intentions on the demand side. In 2023, the total supply and
demand scale of residential land in 300 cities nationwide experienced a year-on-year decline of over 20%. This included the
release of 610 million square meters, down by 22.4% compared to the previous year, and the transaction of 480 million square
meters, showing a 23.1% decrease. This absolute scale was the lowest in the last ten years. The total land transaction amount
nationwide was RMB3,750.4 billion, representing an 18% year-on-year decrease compared to the same period last year The
majority of land transactions were conducted at base prices, resulting in transaction amounts maintaining substantial disparities
compared to the same period last year. The premium rate remains relatively low, with an annual premium rate of only 4.5%.
Thereinto, in 2023, the transaction amount in Shenzhen decreased by 62%, with the total transaction amount decreasing by over
RMB55 billion compared to the previous year.
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Policy Support Fails to Drive Significant Financial Improvement National real estate development investment has been on
a continuous decline since April 2022, with the rate of decrease expanding overall in 2023. Real estate enterprises have
witnessed a year-on-year downward trend in their available funds. At the end of October, the Central Financial Work Conference
emphasized the importance of "encouraging positive interaction between finance and real estate, enhancing regulatory systems and
fund supervision for real estate enterprises, refining macro-prudential management of real estate finance, and providing fair
treatment to different types of real estate enterprises to address their financing requirements. Despite the acceleration of mortgage
lending by banks, the uncertainty of economic recovery has negatively impacted homebuyers' confidence, resulting in individual
mortgage loans amounting to RMB1.9 trillion, which represents a year-on-year decrease of 7.6%. Real estate companies' sales
repayments have been negatively affected to varying degrees. The funds in place for real estate development enterprises
throughout the year reached RMB12,745.9 billion, representing a 13.6% year-on-year decrease according to data from the
National Bureau of Statistics. The central government and various ministries and commissions have continuously released
stabilization signals since 2013. While the credit environment has marginally improved, it will take time for this improvement to
be transmitted to the market end. The arrival of mortgage loans and development loans still requires time.
(II) Policy environment of the industry
In 2023, the central government introduced the concept of the "Three Major Projects," marking a shift in real estate industry
policies from the mantra of "housing is for living, not for speculation" to focusing on "risk prevention and resolution, tailored
policies for different cities, meeting essential and improvement needs, and fostering innovative models", with a strong emphasis
on promoting the stable and healthy development of the real estate market. Policies such as reducing down payments, lowering
interest rates, recognizing the house, not the loan, and extending tax refunds for slippage property replacements were successively
implemented to address demand-side issues. On the supply side, relief measures like the extension of the "16 Financial
Regulations", the "Three No-Lower-Than" policy, and the creation of a "White List" for real estate enterprises were successively
proposed. In summary, there are three core aspects of the real estate industry policy in 2023: reinforcing financial support on the
supply side to alleviate the financial pressure of real estate enterprises; intensifying support for personal credit to alleviate
residents' mortgage pressure and boost housing demand release; and accelerating the relaxation of local regulatory policies to
uplift market sentiment and bolster the confidence of homebuyers.
The demand-side is primarily focused on land and financial policies. (1) The policy of "Recognizing the House, Not the Loan"
has been implemented. The implementation of the policy of "Recognizing the House, Not the Loan" was confirmed on August
25th through a joint announcement by the Ministry of Housing and Urban-Rural Development, the People's Bank of China, and
the China Banking and Insurance Regulatory Commission. This policy benefits individuals seeking property replacements and
those purchasing homes in different locations, with at least 63 provinces and cities, including major metropolitan areas like Beijing,
Shanghai, Guangzhou, and Shenzhen, have publicly declared their adherence to the policy; (2) The lowering of the minimum
down payment ratio has opened up space for reduced down payments in restricted purchase cities. On August 31st, the People's
Bank of China and the China Banking and Insurance Regulatory Commission issued a notice regarding the adjustment and
optimization of differentiated credit policies, which standardized the minimum down payment ratio for housing commercial loans
at 20% and set the minimum down payment ratio for the second home at a minimum of 30%, no longer distinguishing between
regions with or without purchase restrictions; (3) The hurdle rate of first-home mortgages underwent dynamic regulation, and the
minimum interest rate on second-home mortgages was reduced. On January 5th, the People's Bank of China and the China
Banking and Insurance Regulatory Commission established a dynamic adjustment mechanism for the minimum interest rate on
first-home mortgages. Following this, nearly a hundred cities have lowered the hurdle rate of first-home mortgages, with over 20
cities abolishing the minimum limit. On August 31st, the Central Bank and the Banking Regulatory Commission announced the
adjustment of the hurdle rate of second-home commercial loans from LPR+60BP to LPR+20BP; (4) The reduction of interest rates
on existing housing loans is implemented to alleviate residents' debt pressure. On August 31st, the Central Bank and the Banking
Regulatory Commission issued guidance for commercial banks to lower the interest rates on existing first-home mortgages; (5)
Reserve ratios and interest rates are decreased. On March 27th and September 15th, there were comprehensive reductions of 0.25
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
percentage points in reserve ratios. The 1-year LPR was lowered by 10 basis points to 3.55% on June 20th, and the LPR rates for
periods over 5 years were decreased by 10 basis points to 4.2%. On August 20th, the 1-year LPR saw a unilateral reduction of 10
basis points to 3.45%.
The supply side focused on land and financial control. (1) In terms of land, the land supply plan for 2023 was reduced by 10%,
with an actual completion rate of around 40%. The completion rate of the 2023 land supply plan is relatively low. Local
governments are actively optimizing and adjusting land auction rules and the structure of land supply to attract real estate
developers to participate in bidding. Leading real estate companies continue to heavily invest in premium land parcels, with their
advantages expected to grow further. The trend of "the strong getting stronger" is likely to continue, while local urban investment
entities may scale back their land acquisition efforts. Private enterprises are adopting a cautious investment approach, necessitating
an extended recovery period; (2) In terms of policies, the Central Political Bureau meeting proposed to "adapt to the new situation
where significant changes have occurred in the supply and demand relationship of China's real estate market, timely adjust and
optimize real estate policies, and implement differentiated policies based on local conditions to effectively utilize the policy
toolbox. In July, the Central Bank extended the application deadline for the "16 Financial Measures". In August, the China
Securities Regulatory Commission (CSRC) clarified that listed real estate enterprises were not subject to restrictions related to
falling below the issue price, falling below net asset value, or incurring losses for refinancing. In October, the Central Financial
Work Conference convened, highlighting the need to enhance regulatory systems and fund supervision for real estate enterprises,
refine macro-prudential management of real estate finance, and provide fair treatment to different types of real estate enterprises to
address their financing requirements. In November, three departments held a symposium for financial institutions, proposing the
concept of "Three No-Lower-Than," and it is reported that regulators were also devising a "white list of 50 real estate enterprises".
Afterward, banks such as the Industrial and Commercial Bank of China, Agricultural Bank of China, China Construction Bank,
and Bank of Communications convened meetings with real estate enterprises to listen to their financing demands and affirmed
their commitment to increasing support for real estate financing. In 2023, provinces and cities nationwide loosened policies,
increased efforts, and sped up the process, with 273 provinces and cities implementing 622 policy relaxations, and almost all
restrictive administrative measures were removed. The regulation of the real estate market continues to improve and upgrade, with
the pace and intensity of policy tightening significantly increasing since the second half of the year. In anticipation of 2024,
central-level real estate policies are expected to focus on three main areas: first, providing financial support for the construction of
the "Three Major Projects" and using this as a catalyst to drive the development of a new model for real estate growth; second,
implementing supply-side financial support measures like the "Three No-Lower-Than"; and third, reducing housing transaction
taxes and fees to stabilize demand and thereby the market. As the tide of real estate market correction surges onward, one cannot
help but ponder the scope for policy refinement in the top-tier cities. Additionally, it is not unreasonable to anticipate a more
streamlined financing apparatus for real estate enterprises.
(III) Regional market landscape
From the perspective of regional markets, Shenzhen's economy held steadfast in its fortitude in 2023, with real estate policies
focusing on "stabilizing land prices, stabilizing house prices, stabilizing expectations, supporting both rigid and improved housing
demand, and promoting the stable development of the real estate market". Several relaxed and favorable policies and housing
credit policies were introduced. In the first half of the year, policies related to affordable housing were released, abolishing
previous housing types such as affordable commercial housing and talent housing, and introducing new housing types like
affordable rental housing and shared ownership housing. The original target of constructing and securing affordable housing
during the "14th Five-Year Plan" period, set at 540,000 units, was adjusted to no fewer than 740,000 units. In the second half of
the year, a notice was issued to optimize the criteria for determining the number of housing units eligible for personal housing
loans, implementing policies such as "recognizing the house, not the loan", proposing an increase in the housing provident fund
withdrawal limit for renting, and adjusting and optimizing the hurdle rate for personal housing loans. These policies aim to
stimulate demand from essential and upgrading customers, driving the release of housing demand amid shifting market
expectations.
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
(IV) The situation and tasks facing the Company
At the end of 2023, the National Conference on Housing and Urban-Rural Construction was held in Beijing, setting the tone for
the development of the real estate industry in 2024: adhering to the principle of seeking progress while maintaining stability,
promoting stability through progress, and prioritizing development before demolition; implementing differentiated policies based
on local conditions, adopting tailored strategies for each city to achieve a balanced relationship between supply and demand in the
real estate market. From the perspective of Shenzhen Property Group, there are certain challenges in both internal and external
environments. The planned sequential market introduction of all ongoing projects emphasizes sales revenue as the primary focus
for the year. Accelerating fund retrieval, enforcing strict expenditure control, safeguarding the security and stability of cash flow,
and preempting liquidity risks are crucial for achieving sound business operations. By advancing in-depth, the high-quality
development pattern in the property management sector is accelerated. By using multiple measures simultaneously, the overall
promotion of the transformation and upgrading of commercial operations is coordinated. Through proactive action and
deterministic work to address uncertain market conditions, the maintenance of strategic focus and the vigorous pursuit of
comprehensive completion of annual tasks and objectives are aimed for, with the goal of driving the group's various businesses to
a new level with higher positioning and greater accomplishments.
(V) Industry position of the Company
SZPRD arose together with Shenzhen's reform and opening up and has devoted itself to real estate, property management and
other fields for nearly four decades. It has achieved gradual improvements in its comprehensive capacity, brand influence and
industry position and won many honors and awards over the years. During the Reporting Period, the Company won the titles of
"Top 20 in Comprehensive Strength in the Shenzhen Real Estate Development Industry in 2023, Integrity (High-Quality)
Enterprise in the Shenzhen Real Estate Development Industry, and 2023 Shenzhen Top 500 Enterprises", with a ranking of 224th.
ITC Property Management, a subsidiary of the Company, has once again been recognized with awards such as "2023 Top 100
China Property Service Enterprises with Comprehensive Strength", "2023 Top 100 China Property Service Enterprises in Brand
Value", and "2023 Leading Enterprise in Property Services for Chinese Industrial Parks". The Shenzhen International Trade
Center Building was listed in the first group of Shenzhen historical buildings announced by the People's Government of Shenzhen
Municipality. The historical exhibition of Shenzhen International Trade Center was chosen for inclusion in the list of significant
historical sites of reform and opening up and the Shenzhen demonstration base for social science popularization in 2023. These
awards and honors demonstrated the Company's comprehensive strength and reflected the high recognition of the Company's
comprehensive strength by the industry, customers and government departments.
During the Reporting Period, faced with the changing landscape of the real estate industry, the Company has set its sights on the
target and is pushing to achieve all annual business targets by the end of the year. It takes proactive measures to adapt and flexibly
address market challenges head-on. The Company is using a combination of approaches to enhance the market-oriented
transformation of commercial operations. The smooth development of the group's businesses is safeguarded through active
measures in safety production and maintaining stability in petitions and appeals.
II Principal Activity of the Company in the Reporting Period
(I) Core Business Overview
Established in 1982, the Company was originally known as "Luohu Engineering and Construction Headquarters" and renamed
"Shenzhen Municipal Property Development Corporation" in August 1985. The Company was determined as the second batch of
pilot units for joint-stock reform of state-owned enterprises in 1988. Approved by the municipal government, the Company renamed
to ShenZhen Properties & Resources Development (Group) Ltd. in 1990. The stock of the group company (stock name: SZPRD, A/B;
stock code: 000011, 200011) was officially listed in Shenzhen Stock Exchange in March 1992.
The Company contracted and built Shenzhen International Trade Center Building as Party A and created, planned, and organized the
world-famous "Shenzhen Speed". The building was the place where Chairman Deng Xiaoping gave talks in his inspection to the
15
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
south. SZPRD came into being because of the building and has risen amid the Reform and Opening up campaign. Emerging and
growing together with Shenzhen, a city of miracles, the Company has been “a loyal practitioner of the spirit of the ox” and overcome
difficulties in proposing new services in the new era. SZPRD employees have manifested the enterprise spirit of "going ahead and
reforming" and centered on the functional positioning as state assets of "serving national economic and social development, the city,
the industry, and the people". The Company has adhered to the original aspiration and striven ahead to be a pioneer. Therefore, it has
made remarkable achievements in development speed and quality. So far, the Company has grown into a large comprehensive
industrial group from the project company that built Shenzhen International Trade Center Building. In the new era, the Company
sizes up the situation, seizes the momentum and forges ahead toward the goal and vision of becoming a "leading smart operator of
industry-city space in China".
1. Industrial & urban space development
In terms of the space development segment, the Company is specialized in developing the residence, the hi-end apartment, the office
building, and the industrial park and has developed a batch of brand projects, including Shenzhen International Trade Center
Building, Huanggang Port, Tian'an International Building, Qianhai Gangwan Garden, and Golden Collar Holiday. Based on its
present real estate development business, the Company will improve its existing portfolio and plan for new businesses. It will engage
a number of subsidiaries in property development and urban renewals, including Huangcheng Real Estate, Rongyao Real Estate, and
Wuhe Urban Renewal, strengthen capital operation via the listing platform, and make a reasonable layout of the city space
development segment. In the Reporting Period, the Group steadily advanced the development projects inside and outside Shenzhen,
accelerated the sales of projects and sped up cash inflow. Moreover, it focused on the development and construction of industry-city
complexes and accelerated to create an integrated and co-existing model for the development of boutique urban residences and high-
end industry space.
2. Property management services
The Company's property management segment takes ITC Property Management as its platform. As China’s first batch of first-class
qualified enterprises in property management, ITC Property Management, after more than 30 years of development, has become a
domestic first-class property service provider with diversified business capabilities and technological strength, and has been awarded
"Top 100 National Property Management Enterprises" and "Excellent Enterprise of Property Management in China's Industrial
Parks" for many years in a row. The projects under its management are all over the country, and its business radiates to various
regions in China, such as South China, Southwest China, East China and North China, as well as the China-Vietnam Cooperation
Zone in Vietnam. The Company's existing business has covered industrial parks, cultural tourism scenic spots, government agencies,
rail transportation, housing, hospitals, schools, hotels and other various business models, and is planning to develop the business of
grassroots social governance. The Company collaborated with the government to create a safe, harmonious, civilized and orderly
urban environment, basically forming a pattern of integrated development of multiple business models. There are more than 20
subsidiaries under ITC Property Management, and with the functional departments of the headquarters as the platform, it has actively
built three centers of "market, empowerment and supervision", and formed three business centers and profit centers of specialized
business model companies, specialized companies and companies in other regions, so as to continuously and effectively realize the
new pattern of coordinated development of "1+1>2". During the Reporting Period, ITC Property Management completed the receipt
of management rights and integrated management of five newly-acquired enterprises, and its market expansion reached a record high.
The net increase in managed properties was approximately eight million meters, and the total managed properties have exceeded 40
million square meters. Notably, the scale of operational management for high-end industrial parks is predicted to retain its exalted
status among domestic industrial park operations.
3. Industrial ecosystem operation
With respect to the industrial ecosystem operation segment, the Company gave full play to its foundation in the three basic industries,
namely, real estate development, property management, and leasing and the advantage of the whole industry chain, focused on the
two major strategies of “value-added operation of existing assets” and “light-asset operation output”, and deepened internal and
external strategic cooperation. It is committed to creating a closed loop of the whole industrial ecosystem, covering project
16
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
development services, park operation services, and supporting rental operations, and keeping improving the space service and rental
ecosystem in the industrial park. A unique and mature business development model has been put in place with the capability and
experience of the whole chain of planning, dismantling, construction control, business invitation, operation, and on-site management
with respect to various assets. The Company is expediting the stock taking and assessment of its properties in stock and strengthening
the management over them. In the future, it will gradually expand the scope of leasing and raise the development capability of
property rental. Moreover, the Company gradually shifts the focus of industrial ecosystem operation to sci-tech parks, provides
supporting services covering the whole value chain, such as the import of industrial ecosystem, project development services, and
park operation services, and serves the role of "space service provider" centering on sci-tech parks.
4. Other business
In the Reporting Period, the Company's businesses also included catering service and project supervision service. The catering
service is operated by Shenzhen Guomao Catering Co., Ltd. Guomao Catering Co., Ltd., established in 1986, became famous at
home and abroad, as it was the place where President Deng Xiaoping gave talks during his inspection to the south in 1992. Since its
establishment, it has received more than 600 country leaders, famous people, and numerous domestic and overseas guests, with its
reputation spreading all over the world. The project supervision service is handled by the subordinated supervision company of the
Group. The company has the Grade A supervision qualification of building works of the Ministry of Housing and Urban-Rural
Development (MOHURD). It was originally known as Shenzhen Property Engineering Management Department, and takes part in
the construction and management work of Shenzhen International Trade Center Building. It is a witness of the whole process of
"Shenzhen speed", and mainly serves for the development project of the Group.
(II) Business review for the Company in 2023
2023 is a critical year bridging the past and the future of the "14th Five-Year Plan". In the face of the ever-changing international
environment and complex economic conditions, the Company closely focused on the implementation of the key work plans
formulated at the beginning of the year, emphasized accelerating project progress, maximized capital efficiency, empowered
platforms, and ensured the effectiveness of indicators, in order to fully achieve the annual tasks and goals. The real estate
enterprises responded to circumstances by flexibly adjusting their sales strategy, accurately seizing favorable opportunities to
initiate pre-sales and refer remaining units, and setting the stage for achieving annual operational targets. The property
management companies increased their overall profitability and core competitiveness through methods like organizational
restructuring, system procedures reengineering, and optimized talent allocation. Aimed at expediting its transformation and
upgrade, the commercial operations companies continued to enhance its operational management model, ensuring a steady and
healthy growth trajectory across its various business segments. As at the end of the Reporting Period, the total assets of the Group
stood at approximately RMB16.988 billion. During the year, the Group recorded operating revenue of approximately RMB2.97
billion and a gross profit of approximately RMB707 million, successfully achieving the major economic indicators for the year.
First, the industry-city space development segment took proactive measures and adopted flexible strategies to address
market challenges. The real estate business recorded operating revenue of RMB1,235 million, accounting for 41.64% of the total
operating revenue. During the Reporting Period, the simultaneous release of four major new real estate projects: the Jinling Project,
the Guangming Yutang Shangfu Project, the Lanhu Shidai Project, and the Humen Sea Bay Project, occurred. The marketing
management actively responded to market changes, exercised prudent judgment, closely monitored market dynamics in key areas,
and seized market opportunities to drive sales and turnover. The Group's various business lines, such as cost, design, and
engineering, continuously strengthened node targets and resource protection coordination while adhering to market-oriented
management concepts and highly coordinated cooperation. Comprehensive planning and project construction were carried out in
advance, including project scheme design, bidding and procurement, target cost determination, and on-site construction. Each
project in progress was efficiently and orderly developed, with the refined management system for the entire real estate project
development process taking shape. Projects such as Shenyang Digital Town, Haikou Hongqi County, Fuyuan Industrial Park, and
Huiyang Danshui have also made significant breakthrough progress.
17
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Second, the property management segment pushed forward with external outreach and internal coordination and worked
in tandem to intensify market expansion efforts. The operating revenue from property management was RMB1.58 billion
throughout the year, accounting for 53.24 % of the total operating revenue, increasing its share. During the Reporting Period, ITC
Property Management actively engaged in expanding property management projects, and drove external expansion and internal
coordination in parallel. The addition of 70 new expansion projects has increased the managed area to over 40 million square
meters. Collaborative partnerships with Shenzhen Bay Super Headquarters Base, Urban Construction Group, and other entities
were further deepened, resulting in the undertaking of multiple high-quality projects within the system, such as the Shenzhen-
Hong Kong Innovation River Open Center and Dongguan Qingxi Park. ITC Property Management has once again secured awards
such as "2023 Top 100 Chinese Property Service Enterprises in Comprehensive Strength", "2023 Top 100 China Property Service
Enterprises in Brand Value", and "2023 Leading Enterprise in Property Services for Chinese Industrial Parks", continuously
enhancing brand value and reputation. ITC Technology Park actively pursued initiatives in exploring pre-introduction services and
community services, expanded new business formats like the Longhua District Smart Agricultural Market Supervision Platform,
and enhanced management experience in smart platform operation and front-end consulting services. Furthermore, measures such
as enriching and adjusting the team members of the platform company, optimizing the internal organizational structure, and
formulating 25 key tasks for high-quality development are being taken to further enhance the core competitiveness, setting the
direction for high-quality development of the property management segment in the "14th Five-Year Plan" period.
Third, multiple measures were taken at the same time and core operating capabilities were cultivated for industrial
ecological operation and other segments. The operating revenue from property rental throughout the year was RMB150 million,
accounting for 5.12% of the total operating revenue. In recent years, the Company has taken various steps to accelerate its
transformation and upgrading, explored the establishment of an incremental sharing mechanism and intensified project expansion.
Besides, core operating capabilities were cultivated in multiple paths and the transformation of the current simple leasing business
mode to a commercial operation mode was promoted, thereby boosting the development and growth of the industrial ecological
operation segment. During the Reporting Period, ITC Property Management, through proactive initiatives, operated in a self-
operated mode, firmly progressing in creating the group's independent commercial brand and exploring market-oriented
commercial operations. The industrial operation segment cultivated core operational capabilities through multiple paths, such as
improving asset quality and efficiency and exploring the establishment of incremental sharing mechanisms. With quality
improvement and efficiency enhancement as the core, efforts are accelerated to promote the transformation and upgrade of
existing assets and revitalize their utilization. In terms of industrial investment attraction, there are plans to expand the industrial
alliance system during the year and actively drive project investment attraction efforts.
(III) Production safety in 2023
In 2023, the Company continued to thoroughly implement General Secretary Xi Jinping's series of important expositions and
important instructions on production safety and emergency management, co-ordinate development and safety, guard the red line of
production safety, and urge all its business entities to take on responsibility in this respect. The Company's annual production
safety situation remained stable and orderly, with no production safety liability accidents involving serious injuries to personnel or
above or significant economic losses, and successfully completed the Company's production safety objectives for 2023.
Firstly, the Company comprehensively conveyed and implemented the safety work deployment of higher authorities. The Group
and its affiliated enterprises have held party committees and safety committees for nearly 200 times to listen to reports on work
safety, study and solve and comprehensively deploy major matters of work safety. Secondly, the Company established rules and
regulations and adhered to system leadership. The Company has revised and released the "Compilation of Safety Production and
Occupational Health Management System of SZPRD" and the "Award and Punishment System for Safety Production of SZPRD"
and other rules and regulations to further improve the safety management system. Thirdly, the Company carried out in-depth
18
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
investigation of hidden safety hazards and special rectification actions for major hidden accidents. The leadership team of the
Group and its affiliated enterprises conducted 892 person-time in-depth inspections, and found a total of 25,922 hidden safety
hazards, of which 28,768 have been rectified, with a rectification completion rate of 96%. Fourthly, the Company fostered a safety
culture and raised safety awareness. The Group and its subsidiaries organised 2,085 training sessions with 36,100 participants.
Fifthly, the Company carried out emergency drills and strengthened its emergency rescue capability. The Group and its
subsidiaries organised 985 emergency drills of various types, with a total of 30,255 participants. Through real drills and exercises,
we tested the implementability of the enterprise emergency plan, and further enhanced the level of standardisation of the enterprise
personnel's operation and emergency rescue capability. Sixthly, during the year, a number of subsidiaries were awarded honours
for safety production; three subsidiaries were awarded 4A level through standardisation certificates for safety standardisation; a
number of projects in the real estate sector were awarded provincial "Double Excellence" projects; and the SZPRD-Chuanqishan
project was awarded the Shenzhen Safe and Civilised Advanced Community.
Cumulative land bank:
Floor area available for
Name of project/area Site area（0,000 ㎡） Floor area（0,000 ㎡）
development（0,000 ㎡）
Land in Danshui, Huiyang
1.77 4.25 4.25
District, Huizhou City
Land in Hongqi Town,
15.80 - -
Haikou City
Total 17.57 4.25 4.25
Development status of major projects:
Floor
Cumu
area
lative
that
floor
Planned compl
The area Estimat Cumula
Time for floor eted
Com that ed total tive
commenc % % that has area constr
City/r Name of Loca pany Site area has investm investm
Usage ement of develo completed with uction
egion project tion ’s （㎡） compl ent ent
constructi ped construction plot in the
inter eted (RMB’ (RMB’
on ratio Curre
est constr 0,000) 0,000)
（㎡） nt
uction
Period
（㎡
（㎡
）
）
Futia Constr
Shenz Fuhuihuay n Residen 100 uction 43,52
2018.12 100% 4,274 33,430 0 91,133 77,396
hen uan Distr tial % compl 2
ict eted
The main
Hum body has been
Dongg Under roofed, and
Sea Bay en Residen 100.
uan 2022.03 constr electrical and 51,687 113,713 0 0 321759 258,097
Garden Tow tial 00% uction mechanical
City
n works are
closing out
The main
Guan body has been
gmin roofed, fine
Under
Shenz Yutang Residen 100. decoration is
g 2022.03 constr 14,901 81,960 0 0 265868 197,318
hen Shangfu tial 00% going on and
Distr uction
the project has
ict been opened
for pre-sale
Long Residen Under The main
Shenz Lanhu
hua tial, 69% 2020.10 constr body of Lot 68,298 433,640 0 0 840,000 507,001
hen Shidai uction 02# has
Distr industri
19
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
ict al, reached 46-50
comme floors, the
main body of
rcial
Lot 03# has
and reached the 8th
apartme floor, the main
nt body of Lot
04# has
reached the
20th floor, and
Lot 06# has
reached the -1
to 6 floors,
and Phase I is
working on
the earthwork
and pile
foundation.
Residen Phase I, Lot D
Ping
Shenyang tial, Under is undergoing
Yangz shan
Digital industri 67% 2023.03 constr above ground 231,612 370,258 0 0 252,911 77,307
hou Villa uction main
Town al and
ge construction
office
Sales status of major projects:
Pre-
sale/sa
Pre- Floor
Floor les
sale/sale area
Cumulat area Cumulat revenu
s settled
The Floor area Floor area ive pre- pre- ive e
revenue in the
City/ Comp with plot available sold/sol sold/sol settled settled
Name of generate Curre
regio Location Usage any’s ratio for sale d floor d in the floor in the
project in the nt
n interes area Current Curre
（㎡） （㎡） Current area Period
t Period nt
（㎡） Period (㎡) （㎡ Period
（㎡） (RMB’0
） (RMB
,000)
’0,000
)
Resident
Intersection of ial,
Golden
Futian South studio
Shen Collar’s 121190. 123127. 4122. 19160
Road and apartme 100% 133800.6 125231.07 2121.15 19322.8
zhen Resort 94 44 93 .94
Binhe Road in nts and
apartments
Futian District commer
cial
Resident
ial units,
Intersection of shops,
Yang Hupan
Shouxihu apartme 45121.4 45121.4 2097. 1904.
zhou Yujing 100% 36141.28 48870.98 2097.68 2075.98
Road and nts, 9 9 68 57
City Phase I
Hangou Road parking
garages
and lots
Resident
ial units,
Intersection of shops,
Yang Hupan
Shouxihu apartme 70203.0 62.79 70183.9 153.0
zhou Yujing 100% 56935.75 73121.96 153.07 57.61
Road and nts, 9 26 8 7
City Phase II
Hangou Road parking
garages
and lots
Resident
Dong Dalang Town,
Songhu ial, 149758. 149757. 341.7
guan Dongguan 100% 147139.96 157911.56 408 359 408
Langyuan commer 71 84 9
City City
cial,
20
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
kinderga
rten, and
parking
space
Resident
Northwest of ial
the junction of (includi
Songbai Road ng
and housing
Shen Yutang Changgang for 31,189.5 31,189.5 87,72
100% 89,143.00 78,373.92 0 0 0
zhen Shangfu Second Road, talents), 2 2 8.55
Yutang Street, commer
Guangming cial, and
District, commun
Shenzhen ity food
market
Rental status of major projects:
The Company’s Rentable area Cumulative rented Average
Name of project Location Usage
working interest （㎡） area （㎡） occupancy rate
Xi Apartments Apartments for long-
Shenzhen 100.00% 3967.05 3967.05 100%
(Longyuan) term rental
Xi Apartments Apartments for long-
Shenzhen 100.00% 1609.42 1609.42 100%
(Longhua) term rental
Xi Apartments Apartments for long-
Shenzhen 100.00% 1589.60 1119.7 70.44%
(Xinhu) term rental
Food Court in
the International Shenzhen Commercial 100.00% 4152.47 1586.1 38.20%
Trade Center
Commercial,
Fumin Complex Shenzhen 100.00% 5900.19 4693.27 79.54%
apartments
Tower A of
Wenjindu Port Shenzhen Office building 75.00% 5904.3 5644.3 95.6%
Building
Haiwai Lianyi Commercial units and
Shenzhen 75.00% 6635.08 6375.08 96.08＆
Building offices
Anhua Building Shenzhen Offices 75.00% 1414 1414 100%
Pengfu Building Shenzhen Offices 75.00% 6494 6494 100%
Shenzhen
Jinfu Building Commercial 75.00% 1652.7 1535.7 92.92%
Shenzhen
Shenzhen
Jinfu Building Commercial 100.00% 567.56 567.56 100%
Shenzhen
Fuxing Garden Shenzhen Residential/commercial 75.00% 5,787.22 5787.22 100%
Fuxing Garden Shenzhen Commercial 100.00% 1417.15 1417.15 100%
Plant area in
Tangxia Town, Dongguan City Plant 75.00% 21135.12 21135.12 100%
Dongguan City
Pacific Business Commercial
Shenzhen 75.00% 3149.03 2856.16 90.70%
Building units/offices
Pacific Business Commercial
Shenzhen 15.00% 14888.76 13691.95 91.96%
Building units/offices
Commercial
Kangti Building Shenzhen 75.00% 2095.87 1925.47 91.87%
units/offices
Commercial
Kangti Building Shenzhen 15.00% 1146.81 1146.81 100%
units/offices
21
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Commercial and
Lyuhua Building Shenzhen 75.00% 7106.95 6671.74 93.88%
residential
Shops on the
ground floor of
Tower 48 in Shenzhen Shops 75.00% 1000.34 1000.34 100%
Lianhua North
Village
Haonianhua Apartments and
Shenzhen 100.00% 1802.61 1760.53 97.67%
Building commercial units
Haonianhua Apartments and
Shenzhen 75.00% 2277.9 2277.90 100%
Building commercial units
Kaifeng Garden
Shenzhen Residential 100.00% 1302.65 824.42 63.29%
in Shangmeilin
Fuyuan
Shenzhen Plant area 75.00% 47131.4 47131.4 100%
Industrial Zone
Tonglu Industrial
Shenzhen Plant area 100.00% 74845.08 73088.67 97.65%
Zone
Jiangling
Shenzhen Plant area 75.00% 10396.64 10396.64 100%
Industrial Zone
Zone 21 Shenzhen Commercial/offices 75.00% 9514.3 9438.7 99.21%
Baoli
Shenzhen Residential 75.00% 9020.07 8044.39 89.18%
Community
Songgang Plant Shenzhen Plant area 75.00% 5700 5700 100%
Longbu Plant Shenzhen Plant area 75.00% 7471.36 7471.36 100%
Gonglu Building
Shenzhen Offices 75.00% 4599.72 4401.88 95.69%
in Huanggang
Yuetong
Shenzhen Offices 75.00% 3044 3044 100%
Complex
Department
Shenzhen Offices 33% 12751.15 12751.15 100%
Store Plaza
Southern
Securities Shenzhen Offices 33% 8809.8 6590.22 74.81%
Building
Building 409,
Sangda Industrial Shenzhen Plant area 33% 3309.2 3309.2 100%
Zone
Mianshui Studio
Shenzhen Apartment 33.00% 3440.12 3440.12 100%
Apartment
Xiangfu Building Shenzhen Commercial 33.00% 3109.4 3109.4 100%
Primary land development:
□ Applicable Not applicable
Financing channels:
Unit: RMB
Financing cost Maturity structure
Financing Ending balance
range/average
channel of financings Within 1 year 1-2 years 2-3 years Over 3 years
financing cost
4,700,312,585. 3,299,753,332.
Bank loans 4%-6% 409,353,332.40 227,821,043.47 763,384,877.60
87 40
Non-bank loans 400,000,000.00 4%-6% 400,000.00 400,000.00 400,000.00 398,800,000.00
5,100,312,585. 3,300,153,332. 1,162,184,877.
Total 4%-6% 409,753,332.40 228,221,043.47
87 40 60
Development strategy and operating plan for the coming year:
22
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
In 2024, the international and domestic situation was fraught with uncertainties, the economy was in a period of slow recovery,
and the traditional property market continued to be under pressure. SZPRD will continue to actively search for the strategic
breakthrough direction, comprehensively connect with the major strategic orientation of the state-owned asset system and firmly
grasp the core processes of stock asset value management and industrial ecological operation services. Relying on the principle of
"expanding the main business and making breakthroughs", efforts will be doubled to develop four major businesses, i.e., industry-
city space development, property management services, industrial ecological operation and main business ecosystem investment,
and guide high-quality development with a new development philosophy.
In terms of land reserve, the important window period of the real estate market is seized to achieve expansion and capacity
expansion through market competition and capital operations. The focus is on potential economic development areas such as the
Guangdong-Hong Kong-Macao Greater Bay Area and the Yangtze River Delta. Projects are actively facilitated through various
means such as market-oriented bidding and auctioning, industrial land acquisition, urban renewal, and project cooperation.
Simultaneously, capital operations are prudently carried out to accelerate market mergers and acquisitions, enabling the Company
to obtain more resources for sustainable development. In terms of project development, the guiding principle of "seeking progress
while maintaining stability, promoting stability through progress, stability with initiative, and effectiveness in progress" is adhered
to. The focus is tightly centered on precise and continuous efforts in the four aspects of "stabilizing cash flow, controlling costs,
expanding capacity, and strengthening foundations". The development and construction of the Yutang Shangfu project, Lanhu
Shidai project, Sea Bay Garden project, and Shenyang Digital Town project are prudently advanced. Efforts are made to
continuously enhance development capabilities, strengthen quality control, deepen lean management, further expand and
strengthen the overall advantages of the group's real estate sector, and actively promote stability in production and operations with
positive results. In terms of sales and inventory turnover, the market window period is seized, marketing touchpoints are controlled,
and full efforts are made to advance residential sales in the Yutang Shangfu project, Lanhu Shidai project, Sea Bay Garden project,
and Shenyang Digital Town project, with the aim of achieving the annual sales targets for the final phase of historical projects.
The above business plan and business objectives do not represent the listed Company’s profit forecast for 2024. Whether it can be
achieved depends on various factors including changes in market conditions and the effort made by the management team.
Investors must pay special attention to that because there exists great uncertainty.
Provision of guarantees for homebuyers on bank mortgages:
Applicable □ Not applicable
1) As a usual practice for real estate developers, the Company has been providing guarantees and security deposits for its
homebuyers on their bank mortgages. As at 31 December 2023, security deposits for such outstanding guarantees amounted to
RMB1,133,604.61, which will be returned upon the expiry of the guarantees.
2) As a usual practice for real estate developers, the Company has been providing guarantees and security deposits for its
homebuyers on their bank mortgages. As at 31 December 2023, outstanding guarantees amounted to RMB211,064,285.20, which
will be returned upon the expiry of the guarantees.
Joint investments by directors, supervisors and senior management and the listed company (applicable for such
investments where the directors, supervisors and senior management are the investment entities):
Applicable □ Not applicable
Compatibility
Amount of of actual
% of As % of the Disinv
Name of Type of investment investment Cumulativ investment
investment peak of the estme
project entity (RMB’0,0 e income amount and
amount project funds nt
00) distributed
income
23
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Urban Mandatory investment
Renewal of entities (including
2,647.00 66.18% N/A None None N/A
Bangling directors and senior
Section at management)
Guanlan Voluntary investment
1,353.00 33.82% N/A None None N/A
Street entities
Note: Since this is an ongoing project, the peak of the project funds, cumulative income and disinvestment are unknown. For
details, please refer to the relevant announcements disclosed by the Company on www.cninfo.com.cn dated 9 November 2019.
III Core Competitiveness Analysis
Advantages in brand and cultural accumulation: SZPRD, a state-owned enterprise in Shenzhen, has forged an unparalleled legacy
of pioneering development over the past four decades. The company has crafted a diversified development pattern with real estate
development at the forefront, accompanied by urban renewal, property management, asset operation, and industrial investment. The
brand value and comprehensive strength of "Shenzhen Property," imbued with the spirit of reform and opening up in international
trade, have garnered significant market recognition. Born from the World Trade Building, the company has flourished through reform
and opening up, coexisting and flourishing alongside the miraculous city of Shenzhen. The corporate culture of "daring to be the first
and striving for transformation" intermingles with the "pioneering spirit" of surmounting challenges, providing guidance in
advancing the remarkable progress of SZPRD from "Shenzhen speed" to "Shenzhen quality."
Market-oriented advantages: In accordance with the market-oriented pace of a small change in a year and a big change in three
years, the Group continues to innovate institutional mechanisms, deepen internal reforms, and actively benchmark with industry
models for market-oriented operation, which significantly stimulates the vitality and momentum of the Group's high-quality
development. In recent years, the Lanhu Times project pioneered the cooperation between state-owned enterprises and private
enterprises in developing urban renewal projects, marking the first fully market-oriented urban renewal project in the history of the
Group, and took the lead in implementing the follow-on investment system for urban renewal projects in the city's state-owned
capital system. With regard to the property management segment, the Company actively explores projects outside Guangdong
Province, and enhances market-oriented expansion, which has effectively increased the Company’s competitiveness in China’s
property management market. The Company has simultaneously established a multi-level incentive and restraint mechanism
including follow-on investment and long-term incentives, allocating resources, selecting talents and assessing rewards and
punishments according to the market-oriented approach.
Whole industry chain advantage: Over the years, the Group has formed the advantage of the whole industry chain in the whole
process of project acquisition, development and construction, investment and sales, leasing management and property management,
especially in the area of high-end park basic services and property management quality services, which has formed obvious
segmentation advantages and forged the core competitive ability of the Company.
City-industry integration advantage: The Company's space development division endeavors to develop a abundance of business
types, encompassing residential, high-end apartments, office buildings, and industrial parks. From the earliest urban complex of
Shenzhen International Trade Center Building, Huanggang Port area development to the development and operation of large city-
industry complex project of Lanhu Times project, the Group's advantages of city-industry complex development products have
been highlighted, and with the implementation of a series of urban renewal projects and industrial projects, the advantages of city-
industry complex will be further consolidated and enhanced.
Advantages as a holding subsidiary of a Fortune Global 500 company: Shenzhen Investment Holdings Co., Ltd., the
controlling shareholder of the Company, has been committed to building a world-leading state-owned capital investment and
operation company and a financial holding group. It has now developed into a state-owned capital investment company focusing
on fintech, technology parks, infant industries and high-end services. In 2023, it ranked 391st in the Fortune Global 500 with
operating revenue of approximately RMB290 billion. Relying on the controlling shareholder's advantages in the whole industrial
24
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
chain of technology parks, the Company carries out active transformation and upgrading and concentrates on the development and
construction of industry-city complexes, heralding a broader development prospect.
IV Core Business Analysis
1. Overview
See contents under the heading “II Principal Activity of the Company in the Reporting Period” above in “Management Discussion
and Analysis”.
2. Revenue and Cost Analysis
(1) Breakdown of Operating Revenue
Unit: RMB
2023 2022
As % of total As % of total Change (%)
Operating revenue operating revenue Operating revenue operating revenue
(%) (%)
Total 2,965,117,025.04 100% 3,708,669,046.85 100% -20.05%
By operating division
Property
1,234,537,188.62 41.64% 1,913,674,526.31 51.60% -35.49%
development
Property
1,578,719,323.98 53.24% 1,666,961,878.32 44.95% -5.29%
management
Property rental 151,860,512.44 5.12% 128,032,642.22 3.45% 18.61%
By product category
Property
1,234,537,188.62 41.64% 1,913,674,526.31 51.60% -35.49%
development
Property
1,578,719,323.98 53.24% 1,666,961,878.32 44.95% -5.29%
management
Property rental 151,860,512.44 5.12% 128,032,642.22 3.45% 18.61%
By operating segment
Shenzhen 2,569,038,060.46 86.64% 3,122,667,234.12 84.20% -17.73%
Other 396,078,964.58 13.36% 586,001,812.73 15.80% -32.41%
By marketing model
(2) Operating Division, Product Category, Operating Segment or Marketing Model Contributing over
10% of Operating Revenue or Operating Profit
Applicable □ Not applicable
Unit: RMB
YoY change in YoY change in YoY change in
Operating Gross profit
Cost of sales operating cost of sales gross profit
revenue margin
revenue (%) (%) margin (%)
By operating division
Property
1,234,537,188.6 818,496,053.38 33.70% -35.49% 88.84% -43.65%
development
25
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
2
Property 1,578,719,323.9 1,316,777,091.3
16.59% -5.29% -8.65% 3.07%
management 8 2
By product category
Property 1,234,537,188.6
818,496,053.38 33.70% -35.49% 88.84% -43.65%
development 2
Property 1,578,719,323.9 1,316,777,091.3
16.59% -5.29% -8.65% 3.07%
management 8 2
By operating segment
By marketing model
Core business data of the prior year restated according to the changed statistical caliber for the Reporting Period:
□ Applicable Not applicable
(3) Whether Revenue from Physical Sales Is Higher than Service Revenue
□ Yes No
(4) Execution Progress of Major Signed Sales and Purchase Contracts in the Reporting Period
□ Applicable Not applicable
(5) Breakdown of Cost of Sales
By operating division
Unit: RMB
2023 2022
Operating
Item Change (%)
division As % of total cost As % of total
Cost of sales Cost of sales
of sales (%) cost of sales (%)
Property
developmen 818,496,053.38 36.65% 433,443,568.87 21.90% 14.75%
t
Property
1,316,777,091.32 58.95% 1,441,477,771.44 72.85% -13.90%
management
Property
98,252,237.79 4.40% 103,856,280.91 5.25% -0.85%
rental
Note:
N/A
(6) Changes in the Scope of Consolidated Financial Statements for the Reporting Period
Yes □ No
See “IX Changes to the Consolidation Scope” in “Part X Financial Statements” in this Report.
26
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
(7) Major Changes to the Business Scope or Product or Service Range in the Reporting Period
□ Applicable Not applicable
(8) Major Customers and Suppliers
Major customers:
Total sales to top five customers (RMB) 1,166,098,513.59
Total sales to top five customers as % of total sales of the
39.32%
Reporting Period (%)
Total sales to related parties among top five customers as % of
4.01%
total sales of the Reporting Period (%)
Information about top five customers:
Sales revenue contributed for As % of total sales revenue
No. Customer
the Reporting Period (RMB) (%)
1 Corporation 1 977,069,378.47 32.95%
2 Corporation 2 119,090,512.11 4.01%
3 Corporation 3 29,159,908.84 0.98%
4 Corporation 4 22,426,604.08 0.76%
5 Corporation 5 18,352,110.09 0.62%
Total -- 1,166,098,513.59 39.32%
Other information about major customers:
Applicable □ Not applicable
Corporation 2 and the Company are under common control.
Major suppliers:
Total purchases from top five suppliers (RMB) 988,434,400.69
Total purchases from top five suppliers as % of total purchases
61.79%
of the Reporting Period (%)
Total purchases from related parties among top five suppliers
3.91%
as % of total purchases of the Reporting Period (%)
Information about top five suppliers:
Purchase in the Reporting
No. Supplier As % of total purchases (%)
Period (RMB)
China Construction Third Bureau First
1 826,670,146.63 51.68%
Engineering Co., Ltd.
Shenzhen Bay Technology
2 62,480,975.10 3.91%
Development Co., Ltd.
Yangzhou Yong'an Electrical
3 45,838,602.49 2.87%
Installation Co., Ltd.
Shenzhen Jinggong Architectural
4 26,909,176.47 1.68%
Decoration Group Co., Ltd.
Shenzhen Shekou Security Service Co.,
5 26,535,500.00 1.66%
Ltd.
Total -- 988,434,400.69 61.79%
Other information about major suppliers:
Applicable □ Not applicable
27
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Shenzhen Bay Technology Development Co., Ltd. is a wholly-owned subsidiary of the Company’s controlling shareholder
Shenzhen Investment Holdings Co., Ltd. Except for that, none of the other four suppliers is a related party of the Company.
3. Expense
Unit: RMB
Reason for any significant
2023 2022 Change (%)
change
Decrease in commissions paid
Selling expenses 46,757,158.57 53,541,997.78 -12.67%
for sales agents
Administrative
310,578,375.15 329,991,655.74 -5.88%
expenses
Finance costs 43,846,029.30 50,571,183.83 -13.30% Increase in interest expenses
Increase in remuneration
R&D expenses 4,133,484.37 3,244,129.11 27.41%
expenses
4. R&D Investments
Applicable □ Not applicable
Expected
Major R&D program Purpose Progress Objectives impact on the
Company
This product offers a WYSIWYG
(What You See Is What You Get)
Develop new modules to assist visual design tool and a wide
non-professional development range of visualization component
engineers in quickly achieving templates to assist non-
To increase
Smart Park visually appealing and professional development
product
Visualization Display practical big data visualization engineers in quickly achieving
Delivered superiority and
Platform [referred to effects, and meet various usage visually appealing and practical
market
as: K-BI] demands in scenarios such as big data visualization effects, and
competitiveness
daily supervision of personnel meet various usage demands in
and objects, decision support, scenarios such as daily
and command dispatch. supervision of personnel and
objects, decision support, and
command dispatch.
By adopting a "cloud-edge-end"
architecture and integrating
technologies such as IoT, big
data, GIS, and 3D visualization,
Develop an information energy data is collected,
system to assist real estate and monitored, processed, and
facility owners and users in analyzed online. In conjunction
Intelligent Energy To introduce
achieving energy efficiency, with "dual carbon requirements,"
Management System new revenue
reducing consumption, and Delivered calculations and monitoring are
[referred to as: FMS- streams for the
promoting environmental conducted against standards to
EMS] Company
protection to support the assist real estate and facility
achievement of enterprise ESG owners and users in achieving
goals. energy efficiency, consumption
reduction, and environmental
protection, to support the
attainment of enterprise ESG
goals.
Smart Park IoT Provide asset owners and The business architecture To increase
Delivered
Platform [referred to operators with a supports flexible configurations product
28
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
as: K-IOT] comprehensive solution for various scenarios, taking into superiority and
integrating powerful operation account requirements related to market
and maintenance tools, projects and organizations, roles competitiveness
management, and intelligent and permissions, and operations
decision-making capabilities. management, as well as the need
for custom workflows, custom
work standards, custom reports,
custom alert management, and
customizable work order fields.
The technology architecture
considers requirements such as
technological sustainability,
security, reliability, performance,
capacity, scalability, and mobile
technology.
The system collects, manages,
and analyzes housing rental-
related data to monitor and
control subleasing and subletting
activities in the rental market,
Develop an information
enhancing the standardization and
system for regulating Expand the
Sublease Supervision transparency of the leasing
subleasing and subletting Delivered Company's
System market, protecting the rights of all
activities in the housing rental market scope
parties involved in renting,
market.
reducing risks and disputes
associated with subleasing and
subletting, and improving the
efficiency and credibility of the
rental market.
Strengthen
support for
flexible
configurations
Enhance support for flexible
to advance
configurations across various
comprehensive
scenarios to better facilitate
operational and
Enhance support for flexible comprehensive facility equipment
digital
configurations across various management activities throughout
management
scenarios, including functions the entire lifecycle of a building,
from an all-
for IoT integration, operational including full coverage of
Facility Management encompassing
monitoring, maintenance work handover and management
System [referred to as: Delivered perspective in
management, basic settings, transfer (customized feature),
FMS] various
intelligent analytics, to achieve operation, maintenance, repair,
scenarios,
digital operational renovation, and disposal
delivering
management of equipment and processes. Support IoT integrated
enhanced value-
facilities. operational monitoring,
added services
maintenance work management,
to customers
basic settings, intelligent
and offering
analytics, and other functions.
robust support
for future
market
expansion.
Details about R&D personnel:
2023 2022 Change (%)
Number of R&D personnel 38 37 2.70%
29
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
R&D personnel as % of total
0.43% 0.40% 0.03%
employees
Educational background
Bachelor’s degree 28 23 21.74%
Master’s degree 2 4 -50.00%
Junior college 8 10 -20.00%
Age structure
Below 30 27 24 12.50%
30~40 7 11 -36.36%
Over 40 4 2 100.00%
Details about R&D investments:
2023 2022 Change (%)
R&D investments (RMB) 4,133,484.37 3,244,129.11 27.41%
R&D investments as % of
0.14% 0.09% 0.05%
operating revenue
Capitalized R&D investments
0.00 0.00
(RMB)
Capitalized R&D investments
as % of total R&D 0.00% 0.00%
investments
Reason for any significant change to the composition of R&D personnel and impact:
□ Applicable Not applicable
Reasons for any significant YoY change in the percentage of R&D investments in operating revenue:
□ Applicable Not applicable
Reason for any sharp variation in the percentage of capitalized R&D investments and rationale:
□ Applicable Not applicable
5. Cash Flows
Unit: RMB
Item 2023 2022 Change (%)
Subtotal of cash generated from
3,509,206,475.96 4,526,054,341.31 -22.47%
operating activities
Subtotal of cash used in operating
3,773,299,460.29 4,420,821,237.45 -14.65%
activities
Net cash generated from/used in
-264,092,984.33 105,233,103.86 -350.30%
operating activities
Subtotal of cash generated from
634,734,196.73 197,490,121.81 221.40%
investing activities
Subtotal of cash used in investing
7,641,999.39 45,114,342.34 -83.06%
activities
Net cash generated from/used in
627,092,197.34 152,375,779.47 311.54%
investing activities
30
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Subtotal of cash generated from
1,484,580,254.47 303,349,674.44 389.40%
financing activities
Subtotal of cash used in financing
624,251,511.63 963,797,633.48 -35.23
activities
Net cash generated from/used in
860,328,742.84 -660,447,959.04 -230.16%
financing activities
Net increase in cash and cash
1,223,445,277.64 -398,048,377.77 -407.36%
equivalents
Explanation of why any of the data above varies significantly:
Applicable □ Not applicable
①Cash generated from operating activities decreased year on year, primarily driven by the decreased property sales revenue in the
Reporting Period.
②Cash generated from investing activities increased year on year, primarily driven by the receipt of payment for equity transfer in
the Reporting Period.
③Cash used in investing activities decreased year on year, primarily driven by the payment for investment last year.
④ Cash generated from financing activities increased year on year, primarily driven by new bank borrowings in the Reporting
Period.
⑤Cash used in financing activities decreased year on year, primarily driven by the payment for an equity acquisition involving
entities under common control last year.
Reason for any big difference between the net operating cash flow and the net profit for this Reporting Period:
Applicable □ Not applicable
For the Reporting Period, net cash generated from operating activities stood at RMB-264,092,984.33, representing a big difference
from the net profit of RMB449,858,861.48, primarily driven by the increased development costs in the Reporting Period.
V Analysis of Non-Core Businesses
Applicable □ Not applicable
Unit: RMB
As % of total
Amount Main source/reason Recurrent or not
profit
Yes (except for
Return on investment 705,759,652.36 99.86% Income from equity transfer equity transfer
income)
Gain/loss on changes in
0.00 0.00% Not
fair value
Asset impairments -212,173,623.03 -30.02% Inventory valuation allowances Not
Confiscation of security
Non-operating income 3,604,677.09 0.51% Not
deposits
Payments for liquidated
Non-operating expense 6,504,504.20 0.92% Not
damages and fines
Allowances for doubtful
Credit impairment loss -19,844,952.87 -2.81% Not
accounts
31
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
VI Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
31 December 2023 1 January 2023 Reason for any
Change in
As % of total As % of total significant
Amount Amount percentage (%)
assets assets change
Monetary 2,748,798,476. 1,517,528,893.
16.18% 9.59% 6.59% New bank loan
assets 72 83
Accounts
502,806,453.88 2.96% 419,933,915.30 2.65% 0.31%
receivable
Contract assets 844,485.57 0.00% 1,094,632.90 0.01% -0.01%
Increased
11,098,209,095 10,975,334,223
Inventories 65.33% 69.36% -4.03% development
.74 .37
costs
Investment
386,810,800.47 2.28% 405,762,739.18 2.56% -0.28%
property
Long-term Increased
equity 84,057,750.55 0.49% 79,781,437.31 0.50% -0.01% returns from
investments joint ventures
Fixed assets 66,436,408.90 0.39% 82,745,172.12 0.52% -0.13%
Construction in
0.00% 0.00% 0.00%
progress
Early
Right-of-use termination of
23,516,796.22 0.14% 70,168,415.65 0.44% -0.30%
assets the leased
assets
Short-term
230,915,000.00 1.36% 0.00% 1.36% New bank loan
borrowings
Operating
Contract
820,424,953.42 4.83% 920,828,040.81 5.82% -0.99% revenue
liabilities
carryforwards
Long-term 1,399,889,274. 3,618,782,344.
8.24% 22.87% -14.63% New bank loan
borrowings 47 00
Early
termination of
Lease liabilities 10,571,092.27 0.06% 77,963,283.55 0.49% -0.43%
the leased
assets
Transfer of
prepaid land
Prepayments 11,983,086.35 0.07% 100,341,806.56 0.63% -0.56% premiums to
development
costs
Recovery of
certain current
accounts and
Other
624,394,372.82 3.68% 639,903,523.33 4.04% -0.36% increased
receivables
allowances for
doubtful
accounts
Long-term Termination of
0.00 0.00% 22,651,454.07 0.14% -0.14%
receivables financing lease
Deferred 1,276,440,386. 1,407,551,347. Reversal of
7.51% 8.89% -1.38%
income tax 83 20 deductible
32
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
assets losses
Increased
Accounts
662,869,059.59 3.90% 608,283,388.52 3.84% 0.06% construction
payable
payables
Decreased
1,217,303,294. 1,515,085,832.
Other payables 7.17% 9.57% -2.40% current
25 45
accounts
Decreased
Current portion
3,092,324,853. current portion
of non-current 18.20% 218,858,766.82 1.38% 16.82%
07 of long-term
liabilities
borrowings
Decreased sales
Other current
68,373,661.13 0.40% 83,991,786.83 0.53% -0.13% tax to be
liabilities
transferred
Increased sale
Long-term
400,105,655.56 2.36% 0.00 0.00% 2.36% and leaseback
payables
financing
Indicate whether overseas assets account for a higher proportion of total assets.
□ Applicable Not applicable
2. Assets and Liabilities at Fair Value
Applicable □ Not applicable
Unit: RMB
Gain/loss
on fair- Cumulative Impairment
Purchased
value fair-value allowance Sold in the
Beginning in the Other Ending
Item changes in changes for the Reporting
amount Reporting changes amount
the charged to Reporting Period
Period
Reporting equity Period
Period
Financial assets
4.
Investment
-
s in other 887,838.64 10,830.71 636,926.20
equity 261,743.15
instruments
Total of the -
887,838.64 10,830.71 636,926.20
above 261,743.15
Financial
0.00 0.00
liabilities
Contents of other changes:
Other changes were resulted from exchange rate movements.
Significant changes to the measurement attributes of the major assets in the Reporting Period:
□ Yes No
3. Restricted Asset Rights as at the Period-End
Item Ending carrying value Reason for restriction
Monetary assets 15,659,341.60 Notes 1-10
Total 15,659,341.60
33
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Note 1: In terms of monetary assets with restricted right to use at the period-end, there was a bank guarantee money of
RMB2,200,000.00 of the subsidiary company Shenzhen Shenfubao Property Development Co., Ltd.
Note 2: In terms of monetary assets with restricted right to use at the period-end, there was RMB3,000,000.00 of the subsidiary
company Shenzhen Facility Management Community Technology Co., Ltd. frozen by a court of law due to pre-litigation
preservation for contract disputes.
Note 3: In terms of monetary assets with restricted right to use at the period-end, there was a loan deposit of RMB1,133,604.61
provided as mortgage loan guarantees for commercial housing purchasers and paid by the Company as a real estate developer
according to real estate business practices.
Note 4: In terms of monetary assets with restricted right to use at the period-end, there was RMB8,644,166.67 of interest on term
deposits accrued at the period-end.
Note 5: In terms of monetary assets with restricted right to use at the period-end, there was RMB90,000.00 of the subsidiary SZPRD
Xuzhou Dapeng Real Estate Development Co., Ltd. frozen due to house sale contract dispute case.
Note 6: In terms of monetary assets with restricted right to use at the period-end, there was RMB129,021.18 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 7: In terms of monetary assets with restricted right to use at the period-end, there was RMB99,103.58 due to the fact that the
information of shareholders retained in the bank by the subsidiary Shenzhen Yufa Industry Co., Ltd. was inconsistent with the
information of industrial and commercial shareholders in the Administration for Market Regulation, and the bank account was
frozen.
Note 8: In terms of monetary assets with restricted right to use at the period-end, there was a POS security deposit of RMB1,500.00
of subsidiary Shandong Shenguomao Real Estate Management Co., Ltd.
Note 9: In terms of monetary assets with restricted right to use at the period-end, there was RMB1,000.00 which was the deposit for
POS machine of Jiangxi Branch of Shenzhen Shenfubao Property Development Co., Ltd., a subsidiary.
Note 10: In terms of monetary assets with restricted right to use at the period-end, there was RMB18,570.85 which were restricted
funds frozen due labor arbitration case of the subsidiary Shenzhen Free Trade Zone Security Service Co., Ltd.
VII Investments Made
1. Total Investment Amount
□ Applicable Not applicable
2. Major Equity Investments Made in the Reporting Period
□ Applicable Not applicable
3. Major Non-Equity Investments Ongoing in the Reporting Period
□ Applicable Not applicable
34
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
4. Financial Investments
(1) Securities Investments
Applicable □ Not applicable
Unit: RMB
Gain/
Loss Purc
Accou Sold
on hase
Initial nting Begin Accumulate in
Variet fair d in Gain/los
measu ning d fair value Rep Ending Accou Source of
y of Code of Name of investment value Rep s in
remen carryi changes ortin carrying nting investmen
securit security security cost chang ortin Reportin
t ng charged to g value title t funds
y es in g g Period
metho value equity Peri
Repor Peri
d od
ting od
Period
Invest
Obtained
Dome Fair ments
400016 in
in
stic/Fo Gintian A, 3,565,856. value 887,8 10,830.7 636,926. Gintian’s
、 -261,743.15 other
reign Gintian B 06 metho 38.64 1 20 debt
420016 equity
stock d restructuri
instru
ng
ments
3,565,856. 887,8 10,830.7 636,926.
Total -- 0.00 -261,743.15 0.00 0.00 -- --
06 38.64 1 20
(2) Investments in Derivative Financial Instruments
□ Applicable Not applicable
No such cases in the Reporting Period.
5. Use of Funds Raised
□ Applicable Not applicable
No such cases in the Reporting Period.
VIII Sale of Major Assets and Equity Interests
1. Sale of Major Assets
□ Applicable Not applicable
No such cases in the Reporting Period.
2. Sale of Major Equity Investments
Applicable □ Not applicable
Net profit Ratio Relatio Owners Credito Execut
Transac Related
contribute of the nship hip of r’s ed as
Transac tion Pricing -party
Equity Date of d to the Effect on the net betwee the rights schedul
tion price principl transact Disclosure date
sold sale Company Company profit n the equity and ed or
party (RMB’ e ion or
from the contrib transact involve liabiliti not; if
0,000) not
period- uted by ion d has es not,
35
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
begin to the sale party been all involve give
the date of of the and the transfer d have reasons
sale equity Compa red or been all and
(RMB’0,0 to the ny not transfer measur
00) Compa red or es
ny’s not taken
total
profit
(%)
For details, see the
Announcement on the
Progress of the
Successfully
Public Listing
resolved
Transfer of 100%
historical
Equity Interests in
Shenzhen problems
Wholly-owned
Jinghengt and realized
China 26 Subsidiary Shenzhen
ai Real 22 the Market Non-
Union 135.34 Decem Jinghengtai Real
Estate December 83,500 62,801.21 preservation valuati No related Yes Yes
Holding % ber Estate Development
Developm 2023 and on party
s Ltd. 2023 Co., Ltd. and
ent Co., enhancement
Completion of the
Ltd. of the value
Registration of
of state-
Changes in Industry
owned
and Commerce on
assets.
www.cninfo.com.cn
(Announcement No.:
2023-39).
IX Principal Subsidiaries and Joint Stock Companies
Applicable □ Not applicable
Principal subsidiaries and joint stock companies with an over 10% effect on the Company’s net profit
Unit: RMB
Relation
ship Principal Registered Operating Operating
Name with the activity Total assets Net assets Net profit
capital revenue profit
Compan
y
Shenzhen Developme
Huangcheng Subsidia nt and sales 30,000,000. 7,923,999,3 3,005,339,5 215,220,32 45,520,508. 32,969,496.
Real Estate ry of real 00 67.48 44.18 3.33 59 22
Co., Ltd. estate
Shenzhen
International
Property
Trade Center Subsidia 20,000,000. 1,859,543,1 380,027,86 1,575,002,5 101,844,91 67,786,715.
manageme
Property ry 00 15.90 0.65 28.77 3.39 32
nt services
Management
Co., Ltd.
Subsidiaries obtained or disposed in the Reporting Period
Applicable □ Not applicable
How subsidiary was obtained or disposed Effects on overall operations and
Subsidiary
in the Reporting Period operating performance
Shenzhen Jinghengtai Real Estate
Equity transfer Net profit contributed is 628,012,100
Development Co., Ltd.
Notes to the principal subsidiaries and joint stock companies:
36
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
X Structured Bodies Controlled by the Company
□ Applicable Not applicable
XI Prospects
(I) Industry Overview and Trends
See “I Industry Overview for the Reporting Period” in “Part III Management Discussion and Analysis”.
(II) The Company’s Development Strategy
As the traditional real estate market’s development declines on the whole, Shenzhen Properties & Resources Development (Group)
Ltd. specialized in the traditional real estate will be confronted with the extremely severe industrial situation.
In this context, the Company put forward the “12345” overall development idea of “1 Vision + 2 Major Divisions + 3 Driving
Factors + 4 Businesses + 5 Value-added Services”. In other words, the Company will take effective measures with the focus on
“industrial and urban space asset management” and “space digital ecosystem operation” to develop four major businesses including
industrial and urban space development, industrial ecological operation, property management services, and main ecological
investment through expanding the main business and making breakthroughs. Meanwhile, the Company will realize rapid deployment
and integration of five major value-added services including high-end consulting services, customized housekeeper services,
intelligent operation platform, data tapping and commercial ecosystem integration. Base on Shenzhen with scientific and
technological innovation as the primary driving force, the Company will include Guangdong, Hong Kong and Macao metropolitan
area and surrounding areas to maximize the leverage of capital to build a door type intelligent management and control service
platform with smart society basic functions, aiming to build “China’s leading intelligent operator of industrial and urban space”.
In accordance with three-step strategic implementation route of “strengthening bases, brink breakthrough, and focus on leading”, the
Company will seek transformation and upgrading in the development base on the current development conditions, and promote
incremental development in the transformation to build unique development advantages and create a new pattern of innovation and
development of the Company.
(III) Business plan for 2024
In 2023, amidst the continued global economic downturn and the challenging scenario of simultaneous decline in volume and prices
in the domestic real estate market, the Group's management team remained steadfast in upholding the comprehensive leadership of
the Party, maintained strategic resilience, rigorously implemented decisions and arrangements of the Board of Directors and the Party
Committee, pursued innovation, tackled difficulties, and concentrated on key tasks, resulting in steady progress across various
business operations. Throughout the year, the Group did not suffer any material safety incidents or material risk stability maintenance
events, showing a positive and promising opening.
In 2024, the Group continues to adhere to the working principle of "seeking progress while maintaining stability, promoting stability
through progress, stability with initiative, and effectiveness in progress", rigorously implement the principle of "determining
production based on sales and determining expenses based on income," addressing uncertain market conditions through proactive
measures and definitive actions to uphold strategic resilience. Emphasis is placed on being target-oriented, problem-oriented, and
results-oriented, with a focused effort on the precise and sustained execution around the four aspects of "stabilizing cash flow,
controlling costs, expanding capacity, and strengthening foundations". Active achievements are utilized to promote the stability of the
overall production and operation. And resolutely overcome a number of difficulties affecting the advancement of major projects.
Besides, the Group's development will be guided toward a benign track where business segments and projects move forward together
and compete for development. The Group will continue to be a pioneer in enterprise reform and development, comprehensively
accomplish the annual tasks and objectives and make new contributions to the Group's high-quality sustainable development and the
37
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
vision of building China's leading smart operator of industry-city space.
First, the Group will create conditions on the basis of the current resource endowment and business level and strive to
accomplish the leading annual indicators according to the plan. Advance key project marketing and the development of
existing projects in an organized manner to meet the annual budget objectives for operating revenue, total profits, and other
metrics. The opening of Lanhu Shidai, Yutang Shangfu, Sea Bay, and Shenyang Digital Town projects will be timed according to
market conditions to guarantee the fulfillment of annual sales objectives.
Second, the Group will overcome difficulties, strengthen node management and achieve the overall acceleration of projects
under construction. Schedule control will be intensified, responsibilities will be fulfilled and improvements will be made in the
capability of commanding and controlling projects and the operating efficiency. The following work needs to be done for newly
started projects in a forward-looking manner, including scheme design, construction drawing design, the determination of cost
targets at various phases and the implementation of bidding and tendering plans. Such work will be matched seamlessly with the
phased plans and will be carried out ahead of schedule moderately, to ensure that each project is implemented with both quality
and quantity guaranteed in strict accordance with the phased plans. Advance in an orderly manner with the work progress of the
Tianjun Industrial Park and Fuyuan Industrial Park projects, and sustain the integration and project proposal submissions for the
Huiyang Danshui project area.
Third, the Group will continue to strengthen the building of independent operating capacity of secondary platform
companies, the development of platform functions and the playing of roles and stick to the development pattern of real
estate as the main business. A standardized model of the whole process of real estate project development will be built. The
results of real estate work conferences will be implemented, as well as the improvement plans of "3+1" for project management
and "1+5" for cost management. Continuous efforts will be made to improve the project development management system and
achieve the complementation, synergy and coordination among the business lines in the Group's project design, construction,
bidding and tendering and marketing. In addition, the Group will compare its projects with benchmarking projects of the industry
to enhance the management level and build an efficient, standardized model of the whole process of real estate project
development to guarantee the efficient and stable operation of projects during the whole life cycle. With respect to the property
management segment, the high-quality expansion will be sped up and various steps will be taken to enhance the internal
management level. According to the annual target, external M&As and endogenous expansion will be strengthened and the
integration of property management assets in the system will continue to be promoted, in a bid to achieve the target of adding 10
million square meters of management scale through M&As within the year. Furthermore, the opportunity from inspection and
remediation will be used for comprehensive remediation and the building of a service standardization system will be deepened so
that it will match the strategic positioning of the system's property management platform as soon as possible. The focus will be
placed on improving the quality and efficiency of stock assets and transformation and upgrading will be accelerated. The
growth of annual rental income shall not be less than 10% and the average occupancy rate shall not be less than 95%. With the
establishment of an indicator system for quality and efficiency improvement assessment of stock properties and an incentive and
restraint mechanism, the format transformation and upgrading of old properties will be promoted and the stock asset management
will change from "passive lease" to "active operation".
Fourth, the Group will adhere to the Party's overall leadership, promote the decentralization of business focus, the
downward shift of management priorities and the penetration of management capabilities. The Group will continue to
consolidate the Party building, strengthen the building of grass-roots Party organizations and Party members, give full play to the
Party's political leadership to facilitate operation and development and carry out characteristic theme Party building and corporate
culture publicity and creation activities in due time. Financial management will aim at improving the efficiency and effectiveness
of resource utilization. The corresponding measures include optimizing resource allocation, tightening budget control and
assessment, strengthening industry-finance integration, financial analysis and tax management and raising funds through multiple
channels. Sustain the improvement of the selection and employment system, expedite talent pool development through a blend of
"internal selection and external recruitment," continue the deepening of multi-tier incentive and constraint mechanism construction,
38
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
and ensure comprehensive implementation across second and third-tier companies; The Group's industrial operation platform of
"industry-university-research-application" will be built, the industrial operation system will be improved gradually and the
investment attraction capability and level will be enhanced.
Fifth, the Group will be always vigilant about production safety, complaint letters and visits and stability maintenance.
Improve the system framework, enforce quarterly safety production evaluations, and establish a rational reward and punishment
system. Deepen the building of safe production standardization and the "dual prevention mechanism", and intensifying regular
production safety inspections. In addition, hidden risks will be collated regularly, list management will be implemented for risk
points in key areas and key processes, and remediation will be strictly carried out, to ensure that no production safety accident
occurs throughout the year. Enhance the coordination and linkage between petition work and the Group's key operational
endeavors, deepen the use of cases as examples and catalysts for improvement, and fully utilize the supportive, protective, and
enabling functions of petition work in operations.
(IV) Potential risks
1. Market risk
Under the guidance of the policy that "houses are for living in, not for speculating on", the demand side of the real estate market
remains in the downward channel. Consequently, the development space of the property industry has been constantly compressed,
industry profits have fallen sharply and there has been a shift from land dividends to management dividends. In particular, it poses
unprecedented challenges to business capabilities such as cost design and engineering. The advancement of urban renewal projects is
confronted with complicated conditions and formidable obstacles and the Company's business and development face opportunities
and challenges.
Under grim circumstances, the Company thoroughly studied the opportunities and challenges brought about by macroeconomic
trends and policy movements, actively sought the strategic breakthrough direction and adhered to prudent operation. Additionally, it
raised funds from multiple channels, focused on enhancing the management level and seized opportunities in the land market. Based
in Shenzhen, the Company aims to extend its presence to the Guangdong-Hong Kong-Macao metropolitan area and surrounding
areas and strives to improve its sustainable development capabilities.
2. Land Reserve Risk
As a matter of fact, the Company still lacks enough land reserves and development power at later stages. In recent years, the supply
of residential land on Shenzhen Market has continuously declined. Various large-scale real estate enterprises have enlarged their
market shares and accelerated their M&A pace. While the real estate industry is centralizing, the degree of centralization of the land
reserve scale has also been enhanced. As the external environment and the industry’s trend become much more complicated and
severe, the increment market scale will further shrink and the market competition will become increasingly fierce.
Facing the challenges, the Company will continue to expand through market competition, capital operation and urban renewal,
increase land reserves and promote the launch of projects. In respect to property type, residential projects will focus on Guangdong-
Hong Kong-Macao Greater Bay Area, Yangtze River Delta metropolitan area and areas where existing projects locate, and gradually
turn to central urban agglomeration surrounding Wuhan, key cities in Chengdu- Chongqing in the West and those in Beijing, Tianjin
and Hebei. Urban renewal projects will focus on Shenzhen, Dongguan and Huizhou, and follow-up of urban renewal projects in
Guangzhou. Comprehensive industry and urban projects will focus on Guangdong-Hong Kong-Macao Greater Bay Area, Yangtze
River Delta region, Wuhan region in the central part and Chengdu-Chongqing area in the West.
3. Financing Risk
In the process of actively increasing land reserves and accelerating the business development in the recent years, the Company needs
to invest a large amount of funds for land acquisition and project development. In addition to its own funds, the Company’s project
development funds need to be externally financed through bank loans and issuing securities.
Currently, the Company has steady financial situation and good credit condition, and will further strictly control financial risks,
actively explore various financing channels so as to raise funds for project development in the future.
39
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
The above business plan and business objectives do not represent the listed Company’s profit forecast for 2024. Whether it
can be achieved depends on various factors including changes in market conditions and the effort made by the
management team. Investors must pay special attention to that because there exists huge uncertainty.
XII Communications with the Investment Community such as Researches, Inquiries and
Interviews during the Reporting Period
Applicable □ Not applicable
Place Type Index to
Date of visit of Way of visit of Visitor Contents and materials provided relevant
visit visitor information
Inquire about how the company signs
The
Online Indivi Indivi various business contracts and
28 January 2023 Comp N/A
any communication dual dual whether electronic contract signing is
used
Inquire about whether the Company
The
Online Indivi Indivi adopts digital management methods
30 January 2023 Comp N/A
any communication dual dual to effectively integrate and manage
various business operations
The
Online Indivi Indivi Inquire about the land reserve
6 February 2023 Comp N/A
any communication dual dual situation
The
Online Indivi Indivi Inquire about the Company's market
11 April 2023 Comp N/A
any communication dual dual value management plan
The Inquire about the Company's business
Indivi Indivi
31 May 2023 Comp By phone structure and the reasons for the N/A
any dual dual
decline in first-quarter performance
The
Online Indivi Indivi Inquire about the number of
7 June 2023 Comp N/A
any communication dual dual shareholders
Inquire about the Company's relevant
The
Institu Indivi business layout and the merger and
9 June 2023 Comp By phone N/A
any tion dual acquisition situation in the property
management segment
Inquire about whether the company
The
Online Indivi Indivi has formulated and made public the
3 July 2023 Comp N/A
any communication dual dual Management System for Information
Disclosure
The
Online Indivi Indivi Inquire about the staffing of the
5 July 2023 Comp N/A
any communication dual dual research and development center
The Inquire about the timing of the
Indivi Indivi
12 July 2023 Comp By phone dividend payment for the Company's N/A
any dual dual
B shares
The Inquire about the timing of the
Indivi Indivi
17 July 2023 Comp By phone dividend payment for the Company's N/A
any dual dual
A shares
The
Online Indivi Indivi Inquire about the company's related
23 July 2023 Comp N/A
any communication dual dual business layout
The
Online Indivi Indivi Inquire about the company's related
1 August 2023 Comp N/A
any communication dual dual business layout
The
Indivi Indivi Inquire about issues related to
2 August 2023 Comp By phone N/A
any dual dual horizontal competition
40
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
The
Online Indivi Indivi Inquire about the company's
12 August 2023 Comp N/A
any communication dual dual investment plan
The
Indivi Indivi Inquire about the current status of the
1 September 2023 Comp By phone N/A
any dual dual Company's projects
The
Online Indivi Indivi
4 September 2023 Comp Inquire about dividend distribution N/A
any communication dual dual
The
Indivi Indivi Inquire if the Company has any
14 September 2023 Comp By phone N/A
any dual dual financing plans
The
Online Indivi Indivi Inquire about whether the Company
10 October 2023 Comp N/A
any communication dual dual has repurchase plans
The
Online Indivi Indivi Inquire about solutions to industry
11 October 2023 Comp N/A
any communication dual dual competition
The
Online Indivi Indivi Inquire about the company's related
12 November 2023 Comp N/A
any communication dual dual business layout
The
Indivi Indivi Inquire about the number of
15 November 2023 Comp By phone N/A
any dual dual shareholders
The
Online Indivi Indivi Inquire about the Company's 14th
19 November 2023 Comp N/A
any communication dual dual Five-Year Plan
The
Online Indivi Indivi Inquire about the company's related
23 November 2023 Comp N/A
any communication dual dual business layout
Inquire about the progress in
The
Indivi Indivi resolving competition from peers and
29 November 2023 Comp By phone N/A
any dual dual the Company's current cash flow
situation
The
Online Indivi Indivi Inquire about the Company's plans
13 December 2023 Comp N/A
any communication dual dual regarding ESG governance
The Inquire about the Company's main
Institu Indivi
18 December 2023 Comp By phone business operations and capital N/A
any tion dual
operations.
The
Indivi Indivi Inquire about the progress in
26 December 2023 Comp By phone N/A
any dual dual resolving competition from peers
The
Indivi Indivi Inquire about the equity transfer of
27 December 2023 Comp By phone N/A
any dual dual Jinghengtai
The
Indivi Indivi Inquire about the equity transfer of
29 December 2023 Comp By phone N/A
any dual dual Jinghengtai
XIII Implementation of the Action Plan for “Dual Enhancement of Quality and Profitability”
Has the Company disclosed its Action Plan for “Dual Enhancement of Quality and Profitability”
□Yes No
41
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Part IV Corporate Governance
I General Information of Corporate Governance
The internal control system of the Company is complete, accomplished and defined that in accordance with Company Law, Articles
of Association and other laws and regulations as well as requirements of regulatory documents. The convene of Shareholders’
General Meeting, the Board of Directors and Supervisory Board are strictly in accordance with relevant rules and regulations, all
directors and supervisors earnestly and diligently commit their responsibilities. Corporate structure of the Company is complete and
the operation of the Company is standardized.
Organized by the principle of being scientific, simplified and high efficient, the Company’s departments and institutions currently
include Party-mass office, discipline inspection and supervision office (the audit department, office of the supervisory committee,
office of board of directors, comprehensive office (procedure and information center, letters and visits office), HR department
(training center), financial management department (settlement center), investment development department, operation and
management department, design management department (technological center), cost contract department, engineering management
department (office of security committee), office of industrial operation. Each department performs its own functions, and strictly
carries out work according to internal control system, to ensure the normal and efficient operation of the Company.
The Company has always attached great importance on standardizing insider information management, formulated and completed
Management Provisions on Information Disclosure, Work Procedures of Annual Report of Auditing Committee, Accountability
System of Major Errors in Information Disclosure of Annual Report, Work System of Annual Report, Insider Management System of
Insider Information, Management System of Investor Relationship, and other internal control system, to ensure the authenticity,
accuracy and completeness of Company information disclosure. During the reporting period, the Company strictly carried out
information disclosure, corporate governance conference organization, and other work according to requirements of securities
supervision, disclosed information timely, accurately and completely, without any accidents which violate relevant internal control
system of information disclosure.
The Company carried out quality self-examination of listed companies according to the requirements of Shenzhen Securities
Regulatory Bureau to find out deficiencies in the operation of the Company and formulate rectification plan to improve company
governance and standard operation.
Indicate by tick market whether there is any material incompliance with the applicable laws, administrative regulations, and
regulations issued by the CSRC governing the governance of listed companies.
□ Yes No
No such cases in the Reporting Period.
II The Company’s Independence from Its Controlling Shareholder and Actual Controller in
Asset, Personnel, Financial Affairs, Organization and Business
The Company was independent from the controlling shareholder in business, personnel, assets, organization and finance to realize
that independent personnel, independent finance, complete assets, independent organization and independent business. In aspect of
business: The Company was independent from the controlling shareholder with independent and complete business and independent
operation capability. There was no business which was same or competitive with the controlling shareholder. In aspect of personnel:
The Company was complete independent from the controlling shareholder in terms of labor and personnel, management on
remuneration. Personnel of the Company are independent, all ones signed labor contract with the Company. The Company was
42
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
independent from the shareholders or other related parties in personnel management, social security, salary etc. In aspect of asset:
The Company’s assets were complete and independent, the property relationship was clear. There was no capital occupation by
controlling shareholder, and assets of the Company were completely independent from controlling shareholder. In aspect of
organization: The Company’s organization was independent, and the Company implemented rules and regulations as well as
responsibilities for all departments, formed independent responsibilities and rights, scientific and rational internal control system. In
aspect of finance: The Company’s finance was independent with independent finance department. The Company established the
independent finance settling system and financial management system, had its own finance account and paid the tax in line with laws,
run finance decision-making independently.
The controlling shareholder of the Company performed normatively with no conduct that intervened with the operation decision-
making and operation activities directly or indirectly over the shareholders’ general meeting, however, the controlling shareholder
could influence on the significant decision-making through the shares holding.
III Horizontal Competition
Applicable □ Not applicable
Relationship
Type of Company Cause of Progress and
with the Company name Solution
problem nature problem subsequent plan
Company
Shenzhen
Horizontal Controlling Investment
Other Note 1 Note 2 Note 3
competition shareholder Holdings Co.,
Ltd.
Note 1: According to the overall plan of the Shenzhen Municipal Government on the restructuring of the state-owned assets
management system, the State-owned Assets Supervision and Administration Commission of the People's Government of
Shenzhen Municipal decided to establish Shenzhen Investment Holdings Co., Ltd. (SIHC), merging Shenzhen Investment
Holdings Co., Ltd., Shenzhen Management-Investment Company and Shenzhen Trade Investment Holdings Co., Ltd. As a result,
SIHC inherited 63.82% of the equity interests in the listed company ShenZhen Properties & Resources Development (Group) Ltd.
(SZPRD) held by Shenzhen Investment Holdings Co., Ltd. and Shenzhen Management-Investment Company in accordance with
the law. On 19 October 2018, SIHC obtained the Confirmation of Securities Transfer Registration regarding the equity interest of
SZPRD and completed the transfer of the equity interest in SZPRD. In view of the fact that Shenzhen Construction Development
(Group) Company (“Shenzhen Construction Development”), ShenZhen Special Economic Zone Real Estate & Properties (Group)
Co., Ltd. (“SPG”) and SZPRD, all wholly-owned subsidiaries of SIHC, are operating real estate development and commercial
property sales business, which belong to the same industry, and there is competition in the same industry.
Note 2: To avoid horizontal competition, SIHC make the following commitments: 1. On the horizontal competition solution of
Shenzhen Construction Development: as the holding shareholder of the Listed Company, during the listing period at Shenzhen
Stock Exchange of the Listed Company, as for the current business of Shenzhen Construction Development which has horizontal
competition with the Listed Company, within the scope permitted by law and regulation, within 12 months from the equity of
SZPRD being transferred to SIHC, SIHC will start the solution with practical operability among below horizontal competition
solution timely and complete implementation of the solution within 3 years from the date that the equity of SZPRD is transferred
to SIHC to solve current horizontal competition problems: (1) Shenzhen Construction Development signs asset custody agreement
with the Listed Company, entrusts the assets which has direct competition with the Listed Company to the Listed Company,
confirms fair custodian fee at the same time, and takes effective measures to solve horizontal competition within commitment
period; (2) Inject assets with direct competition with the Listed Company into the Listed Company; (3) Transfer assets with direct
competition with the Listed Company to unrelated third party; (4) other measures which can solve horizontal competition
effectively and is favorable for protecting the interest of the Listed Company and legal interests of other shareholders. Before
solving current horizontal competition, while company, enterprise, economic organization (not including enterprises controlled by
43
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
the Listed Company, hereinafter referred to as subordinated Companies) which the Listed Company and SIHC hold controlling
shares or controls actually have business, in case the involved dispute, etc. have major influence on the business, SIHC should
keep neutral as a controlling shareholder to ensure that the Listed Company and subordinated Companies can take part in market
competition on the principle of fair competition. 2. Horizontal competition solution of SPG: From 14 September 2016 to now,
SPG has had stock suspension because of major assets restructuring. According to Review Opinions on Delaying Stock Resumption
because of Major Assets Restructuring of SPG announced by CITIC Securities and Huatai Securities on 26 November 2016, the
restructuring solution is that SPG plans to issue A share and / or use currency to purchase 100% equity of Evergrande Group
(hereinafter referred to as “the restructuring of SPG”). Guangzhou Chiron Real Estate Co., Ltd. will be the controlling shareholder
of SPG upon the completion of the restructuring of SPG. If the restructuring of SPG is completed, SIHC will cease to control SPG,
which means there will be no horizontal competition between SPG and SZPRD. If the restructuring of SPG is terminated, for
business of SPG which has horizontal competition with the Listed Company, SIHC, within the scope permitted by law and
regulation, SIHC will start a rational horizontal competition solution according to actual situation at the time within 12 months
after the termination of reconstruction of SPG and stock resumption announcement date, and fulfill announcement obligation, and
SPG will complete to implement the solution and solve the horizontal competition between SZPRD and SPG within 3 years from
the date SPG terminates the reconstruction and announces stock resumption. 3. Other commitments to avoid horizontal
competition: as the controlling shareholder of the Listed Company and during the listing period of the Listed Company at
Shenzhen Stock Exchange, other subordinated Companies of SIHC will not engage in relevant business which has direct
horizontal business competition with the Listed Company in new business fields except for in the business field where it already
has had horizontal competition with the Listed Company. Shenzhen Investment Holdings promises not to seek improper benefits
with the position of controlling shareholder of the Listed Company and damage the interest of the Listed Company and its
shareholders. In case of violating above commitment, SIHC shall undertake corresponding legal liabilities, including but not
limited to undertaking compensation responsibilities for all losses caused to the Listed Company.
Note 3: SIHC has always been actively committed to fulfilling its relevant commitments. During the term of commitment, SIHC
did not seek any illegitimate interests as the controlling shareholding of SZPRD or damage any rights and interests of SZPRD and
its shareholders. During the term of commitment, SIHC actively collated the underlying assets and businesses of Shenzhen
Construction Development (Group) Company and devoted itself to developing practical and feasible plans as soon as possible to
solve the horizontal competition issue for SZPRD. It also actively promoted the restructuring of SPG. However, given the
objective circumstances, SIHC failed to fulfill the original commitment to avoid horizontal competition. SIHC re-issued the Letter
on Changing the Commitment to Avoiding Horizontal Competition on 31 August 2021 and such commitment change matter was
approved at the first extraordinary general meeting of 2021 held on 27 September 2021. For more details, see the Announcement
on the Application by the Company's Controlling Shareholder for Changing the Commitment to Avoiding Horizontal Competition
(Announcement No.: 2021-32) disclosed by the Company on www.cninfo.com.cn on 11 September 2021.
IV Annual and Special General Meetings Convened during the Reporting Period
1. General Meeting Convened during the Reporting Period
Investor
Meeting Type participation Date of the meeting Disclosure date Resolutions
ratio
The reports and proposals
deliberated and approved at the
The 2022 meeting included the Report on
Annual Annual General
60.01% 19 May 2023 20 May 2023 the Work of the Board of
General Meeting
Meeting Directors in 2022, the Report on
the Work of the Board of
Supervisors in 2022, the 2022
44
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Annual Report, the 2022
Financial Accounts Report, the
2023 Financial Budget Report,
the Plan on Profit Distribution
and Capitalization from Capital
Reserve in 2022, the Proposal on
the Comprehensive Credit Line
for 2023, the Proposal on
Estimated Routine Related-party
Transactions for 2023, and the
Proposal on Renewing the
Engagement of Accounting Firm.
For details, please refer to the
Announcement on the Resolutions
of the 2022 Annual General
Meeting (No.: 2023-12) on
www.cninfo.com.cn.
The Proposal on the Public
Listing Transfer of 100% Equity
of Wholly-owned Subsidiary
The 1st Shenzhen Jinghengtai Real Estate
Extraordin Development Co., Ltd. was
Extraordinary
ary deliberated and approved. For
General 60.04% 20 November 2023 21 November 2023
General additional information, please
Meeting
Meeting refer to the announcement of
of 2023
resolutions made at the 2023 First
Extraordinary Shareholders'
Meeting, with the reference No.
2023-32 on www.cninfo.com.cn.
The proposals deliberated and
approved at the meeting included
the Proposal on the Follow-up
Development of the Company's
Project of Slender West Lake
Ecological Health Valley in
Yangzhou (GZ342, GZ399 Plots),
the Proposal on Amending the
Articles of Association of the
Company, the Proposal on
Revising the Rules of Procedure
The 2nd for General Meetings, the
Extraordin Proposal on Revising the Rules of
Extraordinary
ary Procedure for the Board of
General 57.27% 28 December 2023 29 December 2023
General Directors, the Proposal on the
Meeting
Meeting Amendment of the Rules of
of 2023
Procedures for the Supervisory
Committee, the Proposal on
Revising the Working Regulations
for Independent Directors, and
the Proposal on the Amendment
and Establishment of Governance
Systems of the Company Like the
Annual Auditor Selection System.
For details, see the Announcement
on the Resolutions of the Second
Extraordinary General Meeting
in 2023 (No. 2023-40) on
45
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
www.cninfo.com.cn.
2. Special General Meetings Convened at the Request of Preferred Shareholders with Resumed Voting
Rights
□ Applicable Not applicable
V Directors, Supervisors and Senior Management
1. General Information
De
cr
Be Ot
ea
gi he En
Incr se
nn r di
ease in
in in ng
in th
g cr sh
Incu the e
sh ea ar
mbe Rep Re Reason for
Gen A ar se/ eh
Name Office title nt/F Start of tenure End of tenure ortin po share
der ge eh de ol
orm g rti change
ol cr di
er Peri ng
di ea ng
od Pe
ng se (s
(sha rio
(s (s ha
re) d
ha ha re)
(s
re) re)
ha
re)
Party Secretary Incu
Liu Mal
52 and Chairman of mbe 15 June 2018 26 September 2024
Shengxiang e the Board nt
Director, Deputy Incu
Wang Mal
57 Party Secretary, mbe 15 June 2018 26 September 2024 --
Hangjun e GM nt
Incu
Zhang Mal Director, Deputy
46 mbe 29 June 2022 26 September 2024
Zhimin e Party Secretary
nt
Incu
Shen Fem
54 Director and CFO mbe 15 June 2018 26 September 2024
Xueying ale
nt
Incu
Mal
Wang Ge 52 Director mbe 15 June 2018 26 September 2024
e
nt
Incu
Mal
Xie Chang 51 Director mbe 7 April 2020 26 September 2024
e
nt
Incu
Mei Mal Independent
59 mbe 15 June 2018 26 September 2024
Yonghong e Director
nt
Incu
Mal Independent
Li Donghui 51 mbe 27 September 2021 26 September 2024
e Director
nt
Incu
Fem Independent
Hu Caimei 41 mbe 27 September 2021 26 September 2024
ale Director
nt
Ma Hongtao Mal 55 Chairman of the Incu 21 July 2022 26 September 2024
46
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
e Supervisory mbe
Committee nt
Incu
Zhang Mal
48 Supervisor mbe 15 June 2018 26 September 2024
Manhua e
nt
Incu
Mal
Li Qinghua 41 Supervisor mbe 15 June 2018 26 September 2024
e
nt
Employee
Supervisor,
Executive Incu
Wang Fem
54 Director of ITC mbe 15 June 2018 26 September 2024
Qiuping ale Park, Secretary of nt
the Party
Committee
Employee
Supervisor,
Discipline
Inspection Incu
Fem
Gu Weimin 42 Director, Deputy mbe 15 June 2018 26 September 2024
ale Secretary of the nt
Discipline
Inspection
Commission
Member of the Incu
Mal
Chen Hongji 55 Party Committee mbe 28 December 2020 26 September 2024
e and Deputy GM nt
Member of the Incu
Fem
Cai Lili 51 Party Committee mbe 15 June 2018 26 September 2024
ale and Deputy GM nt
Member of the Incu
Mal
Li Peng 47 Party Committee mbe 15 June 2018 26 September 2024
e and Deputy GM nt
Member of the Incu
Zhang Mal Party Committee,
48 mbe 15 June 2018 26 September 2024
Gejian e Deputy GM and
Board Secretary nt
Total -- -- -- -- -- -- 0 0 0 0 0 --
Indicate whether any director, supervisor or senior management resigned before the end of their tenure during the Reporting Period.
□Yes No
Change of directors, supervisors and senior management:
□ Applicable Not applicable
2. Biographical Information
Professional backgrounds, major work experience and current duties in the Company of the incumbent directors, supervisors and
senior management:
Members of the Board of Directors:
Mr. Liu Shengxiang, born in August 1971, is a now member of the Communist Party of China, professor-level senior engineer,
National Certified Architect (Level 1), and has obtained his Bachelor Degree, Master of Engineering, and MBA. In June 1994, he
joined Shenzhen Tagen Group Co., Ltd., and successively served as the deputy general manager, general manager, and general Party
branch secretary of Shenzhen Municipal Engineering Corp. and the deputy general manager of Shenzhen Tagen Group Co., Ltd. In
June 2013, he joined Shenzhen Road & Bridge Group as the executive director, Secretary of the Party Committee and general
manager. He starts to serve as the Secretary of the Party Committee and the Chairman (June 2018) of the Company since September
47
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
2017. Concurrently, he was the Secretary of the Party Committee, Executive Director and GM (from August 2018 to May 2020) in
Shenzhen Toukong Property Management Co., Ltd.. Mr. Liu Shengxiang was awarded the title of Outstanding Communist Party
Member of Shenzhen in 2001, and obtained Tien-yow Jeme Civil Engineering Prize in 2013, and May 1st Labor Medal of Shenzhen
in 2015, the Party representative of the 6th Party Congress in Shenzhen.
Mr. Wang Hangjun, born in Nov. 1966, member of Communist Party of China, is a senior auditor with a master degree of economy.
He ever took post of Deputy Chief of Audit Bureau of Nanshan District, Shenzhen; Vice Minister, Minister of Audit Department of
Shenzhen Investment and Management Company; Vice Minister, Minister of Supervision Department of Shenzhen Investment and
Management Company; Minister of Audit and Inspection Department of Shenzhen Investment Holding Co., Ltd. He has been
Deputy GM of the Company since Oct. 2007. Now he is the Director, deputy Party Secretary and GM of the Company.
Mr. Zhang Zhimin, born in October 1977, is a Chinese Communist Party member who holds a master's degree. In 2016, he joined
the State-owned Assets Supervision and Administration Commission of the Shenzhen Municipal People's Government, where he has
held various roles including chief staff member of the office (petition office), chief staff member of the office (party committee of the
office), deputy researcher of the office (party committee of the office), fourth-level researcher of the office, and third-level researcher
of the office (party committee of the office). Since May 2022, he has served as the deputy secretary of the company's party
committee, and since June 2022, he has taken on additional roles as the company's director, deputy secretary of the party committee,
and chairman of the labor union.
Ms. Shen Xueying, born in October 1969, member of the Communist Party of China, Bachelor of Economics, is a senior accountant.
Ms. Shen Xueying has been engaged in the financial management of listed companies for nearly 30 years. She joined the Finance
Department of the Company in 1991 and successively served as the clerk and deputy manager of the financial management
department of the Company. She was the manager of the financial management department of the Company from 2007-2018 and has
served as the CFO of China Shenzhen Foreign Trade (Group) Corp., Ltd. since March 2020. Now she is currently the Director and
Chief Financial Officer of the Company.
Mr. Wang Ge, born in October 1971, the member of the Communist Party of China, is now the senior engineer with the degree of
Bachelor of Engineering. Mr. Wang Ge has been engaged in the enterprise management for many years. He successively served as
the deputy director and director of the engineering department of Shenzhen Jian’an (Group) Co., Ltd., the manager and the deputy
secretary of the Party Branch of Jian’an Group Construction and Municipal Engineering Company, and the deputy general manager,
director, the deputy secretary of the Party Committee and the general manager of Jian’an Group. From March 2017 to present, he has
served as the Chief Engineer of Shenzhen Investment Holdings Co., Ltd.
Mr. Xie Chang, born in November 1971, CPC member, bachelor of engineering, senior engineer, economist, and political engineer.
He used to be the head of the Party and Mass Work Department, member of the Disciplinary Committee, and head of the Asset
Management Department of Shenzhen Jian'an (Group) Co., Ltd.; the deputy GM of Shenzhen Sibiono GeneTech Co., Ltd.; the head
of the operation management department, office director, secretary of the Board of Directors of Shenzhen Foreign Labor Service Co.,
Ltd.; office director of Shenzhen Talent Exchange Service Center Co., Ltd. He has served as the head of the comprehensive
management department of Shenzhen Investment Holdings Co., Ltd. from September 2017, and a director of the Company from
April 2020.
Mr. Mei Yonghong, born in October 1964, is the member of the Communist Party of China, and graduated from the Department of
Agriculture of Huazhong Agricultural University with the Degree of Bachelor of Agriculture. He successively served as the deputy
director of the General Office of Ministry of Science and Technology and the director of the information research office, the director
of the Policy, Regulations and System Reform Department of Ministry of Science and Technology and the mayor of Jining City in
Shandong Province. Now he serves as the Director of BGI Group, Chairman of the Board of BGI Agricultural Group (starting from
September 2015), CEO of County Garden Agricultural Holdings Co., Ltd. (starting from August 2018) and Executive Vice President
of BGI Group since May 2022.
Mr. Li Donghui, born in June 1976, is a graduate with a bachelor's degree from the Audit Department of the Economics and
Management School of Wuhan University and received a PhD degree in Accounting and Finance at the University of New South
48
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Wales Business School, Australia. He once worked as a civil servant at the Department of Financial System Audit of the National
Audit Office of the People's Republic of China and as the Executive Dean of the School of Management, Jinan University. He is
currently a distinguished professor of accounting and finance and doctoral supervisor at the College of Economics Shenzhen
University and the Director of the Committee of Professors of the college. Many of his articles were published in top international
journals and key authoritative academic journals of China. He was named a talented person of Shenzhen's overseas high-level
"Peacock Plan" and served as an expert of the Senior Title Review Committee of the Shenzhen Financial Bureau, an expert of the
Xinshen Communication Think-tank of Shenzhen Press Group and a reviewer of the National Natural Science Foundation of China.
Ms. Hu Caimei, born in September 1982, is a Doctor of Management, Postdoctoral Fellow in Economics, Associate Professor and
backup talent of Shenzhen. She currently serves as the Deputy Director of the Institute of Financial Development and State-owned
Assets and Enterprises, China Development Institute and has been long engaged in policy research and consultation in finance and
state-owned assets and enterprises, with extensive experience in the consultation on the reform and development of state-owned
assets and enterprises. She presided over and participated in a number of national, ministerial and provincial scientific research
projects and more than 50 consulting topics. Many of her research results were adopted by government departments and won
scientific research awards.
Members of the Supervisory Committee:
Mr. Ma Hongtao, born in October 1968 and holding a master's degree. He is a member of the Chinese Communist Party.
Throughout his career, Mr. Ma has held various positions in the banking sector. From 1991 to 2000, he worked at the Bank of China
Taiyuan Branch as a cashier, auditor, credit section chief, and deputy director of the office. Following that, he served as the branch
manager and department general manager of China Minsheng Bank Taiyuan Branch from 2000 to 2004. From 2004 to 2016, he held
the position of business supervisor and department general manager at the head office of China Minsheng Bank. From 2016 to 2019,
Mr. Ma took a study tour and provided teaching support in mountainous areas. He then served as the deputy general manager of the
finance department and capital director of Kelu Electronics Co., Ltd. from 2019 to 2020. From 2020 to 2022, he was the general
manager of the office of Wanhe Securities Co., Ltd. Currently, Mr. Ma is the chairman of the supervisory board of the company. He
has held this position since July 2022.
Mr. Zhang Manhua, born in Feb. 1975, master’s degree, member of the Communist Party of China, studied and worked in Central
South University from 1992 to 2004; Senior Manager in the Investment Center of Konka Group and concurrently worked as the
Board Secretary for Shenzhen Jvlong Optoelectronic Co., Ltd., and Investment Manager in Shenchao Technological Investment Co.,
Ltd. from 2004 to 2013; he worked as deputy director in the Strategy & Development Department in Shenzhen Investment Holding
Co., Ltd from 2013 to 2018. He is the director in Law and Risks Management department of Shenzhen Investment Holdings Co., Ltd
since 2018.
Mr. Li Qinghua, born in April 1982, has obtained his Bachelor degree. From 2003 to 2013, he worked for DZX International
Appraisal Limited, and successively served as the project assistance, the project manager and the senior manager; from 2013 to 2017,
he served as the senior executive of the property right management and legal affairs department of Shenzhen Investment Holdings
Co., Ltd., and from 2017 till now, he serves as the deputy director of the audit department of Shenzhen Investment Holdings Co., Ltd.
Ms. Wang Qiuping, born in January 1970, is a Party member and senior economist with a bachelor's degree. From 1992 to 2015, she
was engaged in management in the General Manager's Office, Accounting and Finance Department, Operation Management
Department and Development Management Department of the Company. From 2015 to 2018, she served as the Party Secretary,
Deputy General Manager and Trade Union President of ITC Property Management. From 2018 to 2020, she served as the Party
Secretary and General Manager of ITC Property Management. From 2020 to August 2021, she served as the Party Secretary,
Executive Director and General Manager of ITC Technology Park. She is currently the Party Secretary and Executive Director of
ITC Technology Park.
Ms. Gu Weimin, Born in October 1981, is the member of the Communist Party of China with the Master’s Degree. From 2007 to
2010, she served in KPMG Shenzhen in external audit; from 2011 till now, she has worked for the Company in the audit department
49
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
(the office of the board of supervisors), and is now the Deputy Secretary of the Discipline Inspection Commission and the director of
the Discipline Inspection and Supervision Office (Audit Department, the Office of the Supervisory Committee) of the Company.
Executive officers:
Mr. Wang Hangjun, born in Nov. 1966, member of Communist Party of China, is a senior auditor with a master degree of economy.
He ever took post of Deputy Chief of Audit Bureau of Nanshan District, Shenzhen; Vice Minister, Minister of Audit Department of
Shenzhen Investment and Management Company; Vice Minister, Minister of Supervision Department of Shenzhen Investment and
Management Company; Minister of Audit and Inspection Department of Shenzhen Investment Holding Co., Ltd. He has been Deputy
GM of the Company since Oct. 2007. Now he is the Director, deputy Party Secretary and GM of the Company.
Mr. Chen Hongji, born in May 1968, CPC member, postgraduate degree, and master of philosophy. He has worked in Shenzhen
Municipal People's Government for many years. He joined Shenzhen Construction Investment Holding Co., Ltd. in January 1998 and
successively served as section chief of development research department, deputy director of office, deputy director of Party
committee office and director of secretary office of board of directors. In October 2004, he joined Shenzhen Investment Holding Co.,
Ltd. and successively served as director of the party mass department and director of the board office. Since July 2012, he has been
the deputy GM of Shenzhen Expander. From December 2020, he has served as a member of the party committee and deputy GM of
the Company.
Ms. Cai Lili, Born in November 1972, is the member of the Communist Party of China, and has obtained the Master’s Degree in
Economics. Since 1995, he has worked in Shenzhen Tax Service, SAT, and ever served as the deputy chief of the taxation and
scientific and technological development department of Shenzhen Tax Service, SAT, and the member of the Party Organization and
the deputy director of Futian District Tax Bureau in Shenzhen. Currently, he is the member of the Party Committee, deputy general
manager and Chief Financial Officer.
Mr. Li Peng, Born in May 1976, is the member of the Communist Party of China, the Bachelor of Engineering and the intermediate
economist. Since July 1999, he has worked for the Company as the operation manager, and successively served as the deputy
manager of the Company’s development management department, the manager of the cost control department, and the secretary of
the Party branch and the deputy general manager of Shenzhen Huangcheng Real Estate Co., Ltd. Currently, he now is the member of
the Party Committee, and deputy general manager.
Mr. Zhang Gejian, born in September 1975, the member of the Communist Party of China, MBA, is an Accountant as well as
Auditor. He was engaged in internal auditing work in Audit Department of the Company since July 1997. He acted as the audit
manager, Supervisor of the Company and concurrently the Cost Control Manager. Now he is the member of the Party Committee, the
vice GM and Board Secretary of the Company.
Ms. Shen Xueying, born in October 1969, the member of the Communist Party of China, Bachelor of Economics, is a senior
accountant. Ms. Shen Xueying has been engaged in the financial management of listed companies for nearly 30 years. She joined the
Finance Department of the Company in 1991 and successively served as the clerk and deputy manager of the financial management
department of the Company. She has been the manager of the financial management department of the Company from 2007 to 2018,
and the Chief Financial Officer of China Shenzhen Foreign Trade (Group) Corp., Ltd. since March 2020, and now she is the Director,
and Chief Financial Officer of the Company.
Offices held concurrently in shareholding entities:
Applicable □Not applicable
Remuneration
Office held in
or allowance
the
Name Shareholding entity Start of tenure End of tenure from the
shareholding
shareholding
entity
entity
50
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Shenzhen Investment Chief
Wang Ge 1 March 2017 Yes
Holdings Co., Ltd. Engineer
Director of the
Shenzhen Investment general
Xie Chang 7 April 2020 Yes
Holdings Co., Ltd. management
department
Director of the
Shenzhen Investment legal and risk
Zhang Manhua 1 January 2017 Yes
Holdings Co., Ltd. management
department
Deputy
Shenzhen Investment director of the
Li Qinghua 1 January 2017 Yes
Holdings Co., Ltd. audit
department
Except for the major offices held concurrently in shareholding entities above, Directors Wang Ge and Xie
Note Chang, as well as Supervisors Zhang Manhua and Li Qinghua also serve as Director or Supervisor in a number
of non-listed subsidiaries or invested companies of relevant shareholders.
Offices held concurrently in other entities:
Applicable □Not applicable
Remuneratio
n or
Name Other entity Office held in the entity Start of tenure End of tenure allowance
from the
entity
China Shenzhen
Shen Xueying Foreign Trade Chief Financial Officer 1 March 2020 No
(Group) Co., Ltd.
Director and Executive
BGI Group, BGI Vice President of BGI
Agricultural Group, Group, Chairman of BGI
Mei Yonghong County Garden Agricultural Group, CEO 1 September 2015 Yes
Agricultural Holdings of Country Garden
Co., Ltd. Agricultural Holdings
Co. Ltd.
Distinguished professor,
doctoral supervisor,
Li Donghui Shenzhen University director of the Professor 1 April 2019 Yes
Committee of the School
of Economics
Deputy Director of the
Institute of Financial
China (Shenzhen)
Hu Caimei Development and State- 1 November 2016 Yes
Development Institute
owned Assets and
Enterprises
Note N/A
Punishments imposed in the recent three years by the securities regulator on the incumbent directors, supervisors and senior
management as well as those who left in the Reporting Period:
□ Applicable Not applicable
3. Remuneration of Directors, Supervisors and Senior Management
Decision-making procedure, determination basis and actual payments of remuneration for directors, supervisors and senior
management:
During this Reporting Period, the board and the management of the Company signed statement of operation objectives
responsibility for 2023, conducted appraisal system integrating operation indicators, classification indicators with management
objectives. After the end of this Reporting Period, assessment was implemented by the board. Remuneration of senior executives
51
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
was determined according to “Management Method of Annual salary System of Directors, Supervisors and Senior Executives of
ShenZhen Properties & Resources Development (Group) Ltd.” and “Long-term Incentive-and-Restraint Mechanism of ShenZhen
Properties & Resources Development (Group) Ltd.” and need to be implemented after the annual assessment of the board.
Remuneration of directors, supervisors and senior management for the Reporting Period
Unit: RMB'0,000
Total before-tax Any
Incumbent/F remuneration remuneration
Name Gender Age Office title
ormer from the from related
Company party
Liu Party Secretary and Chairman
Male 52 Incumbent 113.60 No
Shengxiang of the Board
Wang Director, Deputy Party
Male 57 Incumbent 107.95 No
Hangjun Secretary, GM
Zhang Director, Deputy Party
Male 46 Incumbent 96.65 No
Zhimin Secretary
Shen
Female 54 Director and CFO Incumbent 114.72 No
Xueying
Wang Ge Male 52 Director Incumbent 0 Yes
Xie Chang Male 51 Director Incumbent 0 Yes
Mei
Male 59 Independent Director Incumbent 8 Yes
Yonghong
Li Donghui Male 51 Independent Director Incumbent 8 No
Hu Caimei Female 41 Independent Director Incumbent 8 No
Chairman of the Supervisory
Ma Hongtao Male 55 Incumbent 103.92 No
Committee
Zhang
Male 48 Supervisor Incumbent 0 Yes
Manhua
Li Qinghua Male 41 Supervisor Incumbent 0 Yes
Employee supervisor, executive
Wang director of ITC Technology
Female 54 Incumbent 62.55 No
Qiuping Park, Secretary of the Party
Committee
Employee supervisor, Director
of Discipline Inspection Office,
Gu Weimin Female 42 and Deputy Secretary of the Incumbent 48.47 No
Discipline Inspection
Commission
Chen Member of the Party
Male 55 Incumbent 96.65 No
Hongji Committee, Vice GM
Member of the Party
Cai Lili Female 51 Incumbent 96.65 No
Committee, Vice GM
Member of the Party
Li Peng Male 47 Incumbent 96.65 No
Committee, Vice GM
Member of the Party
Zhang
Male 48 Committee, Vice GM, Board Incumbent 96.65 No
Gejian
Secretary
Total -- -- -- -- 1058.461 --
Note: 1. Pay Statement: (1) The above table of remuneration does not include the long term incentive bonus deferred to be paid in
2023: Liu Shengxiang, Wang Hangjun, Chen Hongji, Cai Lili, Li Peng and Zhang Gejian received deferred long term incentive
bonuses of RMB397,700, RMB377,800, RMB106,400, RMB288,600, RMB295,900, RMB261,000, respectively, in the year 2023.
(2) As the assessment for the year 2023 has not been completed, the data in the above table is estimated according to the relevant
rules, and the actual number of awards will ultimately prevail.
52
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Other notes
□ Applicable Not applicable
VI Performance of Duty by Directors in the Reporting Period
1. Board Meetings Convened during the Reporting Period
Meeting Date of the meeting Disclosure date Resolutions
The meeting reviewed and approved the
The 16th Meeting of the 10th Proposal on Signing Performance Target
27 February 2023
Board of Directors Responsibility Letters for Senior Management
in 2023
The board of directors has approved a range of
proposals, which include the Work Report of the
Board of Directors for 2022, Annual Report
and Summary for 2022, Financial Final
Account Report for 2022, Financial Budget
Report for 2023, Proposal on Provision and
Reduction of Various Asset Impairment
Reserves, Proposal on Profit Distribution and
Capitalization of Reserve Fund for 2022,
Proposal on Comprehensive Credit Limits and
The 17th Meeting of the 10th
24 March 2023 25 March 2023 Financing Limits for 2023, Proposal on
Board of Directors
Operating Plan and Investment Budget for
2023, Proposal on Estimated Routine Related
Party Transactions for 2023, Internal Control
Self-assessment Report for 2022, Proposal on
Renewing the Engagement of Accounting Firm,
and Report on Social Responsibility for 2022.
For more details, please refer to the
Announcement of Board Resolution on the 17th
Meeting of the 10th Board of Directors (No.
2023-03) on www.cninfo.com.cn.
The Proposal on Convening the 2022
Shareholders' Meeting and the Company's First
Quarter Report for 2023 were deliberated and
The 18th Meeting of the 10th
27 April 2023 28 April 2023 approved. For details, see the Announcement on
Board of Directors
the Resolutions of the 18th Meeting of the 10th
Board of Directors (No. 2023-09) on
www.cninfo.com.cn.
The Semi-annual Report and Summary of the
Company for 2023 and Proposal on the Follow-
up Development of the Company's Yangzhou
Shouxihu Ecological Health Valley Project
The 19th Meeting of the 10th
25 August 2023 28 August 2023 (GZ342, GZ399 Plots) were deliberated and
Board of Directors
approved. For details, see the Announcement on
the Resolutions of the 19th Meeting of the 10th
Board of Directors (No. 2023-17) on
www.cninfo.com.cn.
The Proposal on the Long-Term Incentive
Settlement of Shenzhen Property Group for
The 20th Meeting of the 10th
27 October 2023 30 October 2023 2019-2021, Proposal on the Payout of Long-
Board of Directors
Term Incentive Bonuses for 2021, Proposal for
the Payout of Deferred Long-Term Incentive
53
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Bonuses for 2022, and Deliberation on the
Company's Third Quarter Report of 2023 were
deliberated and approved. For details, see the
Announcement on the Resolutions of the 20th
Meeting of the 10th Board of Directors (No.
2023-24) on www.cninfo.com.cn.
The Proposal on the Public Listing Transfer of
100% Equity of Wholly-owned Subsidiary
Shenzhen Jinghengtai Real Estate Development
Co., Ltd. and the Proposal on Convening the
The 21st Meeting of the 10th
3 November 2023 6 November 2023 First Extraordinary General Meeting of 2023
Board of Directors
were deliberated and approved. For details, see
the Announcement on the Resolutions of the
21st Meeting of the 10th Board of Directors
(No. 2023-26) on www.cninfo.com.cn.
The proposals deliberated and approved
included the Proposal on the Results of the
Company's 2022 Executive Assessment and Its
Application Plan, Proposal on the Adjustment
of Members of the 10th Board of Directors'
Special Committee, Proposal on Amending the
Articles of Association of the Company,
Proposal on Revising the Rules of Procedure
for General Meetings, Proposal on Revising the
Rules of Procedure of the Board of Directors,
The 22nd Meeting of the 10th
12 December 2023 13 December 2023 Proposal on Revising the Working Regulations
Board of Directors
for Independent Directors, Proposal on the
Amendment and Establishment of Governance
Systems of the Company Like the Annual
Auditor Selection System, and Proposal on
Convening the Second Extraordinary General
Meeting of 2023. For details, see the
Announcement on the Resolutions of the 22nd
Meeting of the 10th Board of Directors (No.
2023-33) on www.cninfo.com.cn.
2. Attendance of Directors at Board Meetings and General Meetings
Attendance of directors at board meetings and general meetings
The director
Total number Board
Board Board failed to
of board Board meetings
meetings meetings the attend two General
meetings the meetings attended by
Director attended director consecutive meetings
director was attended on way of
through a failed to board attended
eligible to site telecommuni
proxy attend meetings
attend cation
(yes/no)
Liu
7 1 6 0 0 No 3
Shengxiang
Wang
7 1 6 0 0 No 3
Hangjun
Shen
7 1 6 0 0 No 3
Xueying
Wang Ge 7 1 6 0 0 No 3
Xie Chang 7 0 7 0 0 No 3
54
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Mei
7 1 6 0 0 No 3
Yonghong
Li Donghui 7 1 6 0 0 No 3
Hu Caimei 7 0 7 0 0 No 3
Zhang
7 1 6 0 0 No 3
Zhimin
Why any director failed to attend two consecutive board meetings:
Not applicable
3. Objections Raised by Directors on Matters of the Company
Indicate by tick mark whether any directors raised any objections on any matter of the Company.
□ Yes No
No such cases in the Reporting Period.
4. Other Information about the Performance of Duty by Directors
Indicate by tick mark whether any suggestions from directors were adopted by the Company.
Yes □ No
Suggestions from directors adopted or not adopted by the Company:
During the Reporting Period, all directors of the Company actively attended Board meetings and general meetings and performed
their duties diligently and conscientiously in strict accordance with the Articles of Association, the Rules of Procedure of the Board of
Directors and relevant laws, rules and regulations. Based on the Company's reality, they put forward relevant opinions on the
Company's major governance and operation decisions and reached consensus through sufficient communication and discussion.
Additionally, they resolutely supervised and promoted the implementation of the resolutions of the Board of Directors, to ensure
scientific, timely and efficient decision-making and safeguard the legitimate rights and interests of the Company and all shareholders.
VII Special Committees under the Board of Directors during the Reporting Period
Num
ber Important Specific
of comments Other dispute
Name of
Members meeti Date of meeting Contents and performance d
committee
ngs suggestio of duties matters
conv ns (if any)
ened
Li Donghui, 1. The proposal for reappointment Supervising
Wang Hangjun, of the accounting firm was the work of
Zhang Zhimin, reviewed and approved; external
Mei Yonghong, 2. The Company's 2022 Annual audit
and Hu Caimei Audit Report and the 2023 agencies and
(adjusted at the Annual Audit Work Plan was the
5
Audit and Risk 22nd Meeting of reviewed; Company's
23 March 2023 Agree
Committee the 10th Board 3. The Inspection Report on the internal
of Directors Company's 2022 Guarantee, audit work;
convened on 12 Related Party Transactions and supervising
December 2023 Other Matters was deliberated; the
to: Li Donghui, 4. The Company's 2022 Financial implementat
Mei Yonghong, Statements was vetted; ion of the
Hu Caimei, Liu 5. The Report on the Audit of the Company's
55
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Shengxiang, Company's 2022 Annual internal
Xie Chang) Consolidated Financial control
Statements was vetted; policies;
6. The Report on the Audit of the coordinating
Company's 2022 Internal Control the
was vetted; communicat
1. The Report on the Progress of ion of the
Audit Work in the First Quarter of management
2023 was vetted; , internal
2. The 2023 Major Risk audit
Assessment Report was vetted; departments
3. The 2022 Internal Control and relevant
26 April 2023 Agree
System Work Report was vetted; departments
4. The Form for Monitoring with
Significant Risks in Q1 2023 was external
vetted; and audit
5. The Company's First Quarter agencies.
Report for 2023 was vetted.
1. The Semi-annual Report and
Summary of the Company for
2023 was vetted;
The Report on the Progress of
Audit Work in the Second Quarter
of 2023 was vetted;
3. The Report on Guarantees and
Related Party Transactions
24 August 2023 Agree
Inspection of the First Half of
2023 was vetted;
4. The Monitoring Report on
Significant Risks in Q2 2023 was
vetted; and
5. The Report on Public
Sentiment Management for Q2
2023 was vetted.
1. The Company's 2023 Third
Quarterly Report was vetted.
2. The Report on the Progress of
Audit Work in the Third Quarter
of 2023 was vetted;
26 October 2023 3. The Monitoring Report on Agree
Significant Risks in Q3 2023 was
vetted; and
4. The Report on Public
Sentiment Management for Q3
2023 was vetted.
The Auditor's Report on the Audit
20 December 2023 Plan for the 2023 Annual Report Agree
was received.
The Proposal on the 2022 Studying the
25 May 2023 Performance Evaluation Results Agree assessment
Hu Caimei, Mei of the Group Company was vetted standards,
Remuneration Yonghong, Li 1. The 2022 Annual Performance remuneratio
and Evaluation Donghui, Xie 2 Evaluation Plan for Senior n policies
Committee Chang, Shen Management of the Group was and plans
1 November 2023 Agree
Xueying deliberated and approved for the
2. The 2022 Individual Duty Company's
Reports of Senior Management of directors
56
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
SZPRD was reviewed and and senior
approved management
3. The Completion Status Chart personnel;
for Annual Performance supervising
Objectives of Senior Management the
of SZPRD was reviewed and performance
approved of duties by
4. The supplementary and veto the
items for the 2022 senior Company's
management assessment was directors
deliberated and senior
5. The roster of personnel management
accountable for the 2022 senior personnel;
management assessment was conducting
deliberated annual
performance
assessment
on the
Company's
directors
and senior
management
personnel
and offering
suggestions.
Liu
Shengxiang,
Wang Hangjun,
Zhang Zhimin,
Wang Ge, Xie
Chang (adjusted
at the 22nd
Strategic
Meeting of the
Development
10th Board of
and Investment 0
Directors
Decision
convened on 12
Committee
December 2023
to: Liu
Shengxiang,
Wang Hangjun,
Zhang Zhimin,
Wang Ge, Shen
Xueying)
Mei Yonghong,
Liu
Shengxiang,
Wang Ge, Hu
Caimei, Li
Donghui
Nomination (adjusted at the
0
Committee 22nd Meeting of
the 10 Board
th
of Directors
convened on 12
December 2023
to: Mei
Yonghong,
57
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Zhang Zhimin,
Wang Ge, Hu
Caimei, Li
Donghui)
VIII Performance of Duty by the Supervisory Committee
Indicate by tick mark whether the Supervisory Committee found any risk to the Company during its supervision in the Reporting
Period.
□ Yes No
The Supervisory Committee raised no objections in the Reporting Period.
IX Employees
1. Number, Functions and Educational Backgrounds of Employees
Number of in-service employees of the Company as the parent
98
at the period-end
Number of in-service employees of major subsidiaries at the
8,719
period-end
Total number of in-service employees at the period-end 8,817
Total number of paid employees in the Reporting Period 8,817
Number of retirees to whom the Company as the parent or its
0
major subsidiaries need to pay retirement pensions
Functions
Function Employees
Production 6,381
Sales 50
Technical 1,433
Financial 174
Administrative 544
R&D 38
Managerial 197
Total 8,817
Educational backgrounds
Educational background Employees
Junior college and technical secondary school and above 2,852
Senior high school and below 5,965
Total 8,817
58
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
2. Employee Remuneration Policy
To align with the Group's development strategy requirements in 2023, the Group implemented a performance-based assessment
and management system for managers of subordinate enterprises, which further increased the work efficiency and created a good
entrepreneurial atmosphere for officers. The Group headquarters rigorously implemented several compensation management
systems and conducted market-oriented research and revision on subordinate companies' organizational structure design,
department function division, post establishment and staffing, and compensation and performance system.
3. Employee Training Plans
In 2023, the Group and its subsidiaries each focused on their respective roles, worked together to optimize talent development
mechanisms, accelerated the cultivation of leadership talents, conducted specialized training courses for key positions and mid-to-
senior level talents, further enhanced the business proficiency and capability qualities of the cadre team, optimized learning
resources, activated the "talent pool" of internal trainers, and further strengthened the internal empowerment system. It
continuously built a learning organization and offered courses to enhance management abilities, improve professional skills, and
upgrade job skills for employees at all levels, so as to continuously enhance the employees' professional knowledge, business
capabilities, and execution skills, and realize the win-win situation of company development and staff growth.
4. Labor Outsourcing
□ Applicable Not applicable
X Profit Distributions (in the Form of Cash and/or Stock)
How the profit distribution policy, especially the cash dividend policy, was formulated, executed or revised in the Reporting Period:
Applicable □ Not applicable
On 28 December 2023, the Company revised the Shareholders' Return Plan for the Next Three Years (2023-2025), which was
considered and approved at the Second Extraordinary General Meeting of 2023 of the Company, with separate counting of votes
for small and medium-sized investors, and the Independent Directors expressed their independent opinions on the revision of the
system. For details, please refer to the Announcement on Resolutions of the 22nd Meeting of the Tenth Session of the Board of
Directors (Announcement No. 2023-33) and the Announcement on Resolutions of the Second Extraordinary General Meeting of
2023 (Announcement No. 2023-40) disclosed by the Company on 13 December 2023.
Special statement about the cash dividend policy
In compliance with the Company’s Articles of Association and
Yes
resolution of general meeting
Specific and clear dividend standard and ratio Yes
Complete decision-making procedure and mechanism Yes
Independent directors faithfully performed their duties and
Yes
played their due role
Specific reasons and the next steps it intends to take to enhance
the investor return level if the Company did not conduct cash N/A
dividend:
Non-controlling interests are able to fully express their opinion
Yes
and desire and their legal rights and interests are fully protected
In case of adjusting or changing the cash dividend policy, the
N/A
conditions and procedures involved are in compliance with
59
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
applicable regulations and transparent
Indicate by tick mark whether the Company fails to put forward a cash dividend proposal despite the facts that the Company has
made profits in the Reporting Period and the profits of the Company as the parent distributable to shareholders are positive.
□ Applicable Not applicable
Final dividend plan for the Reporting Period:
Applicable □ Not applicable
Bonus shares for every 10 shares (share) 0
Dividend for every 10 shares (RMB) (tax inclusive) 3.12
Total shares as the basis for the profit distribution proposal 595979092
(share)
Cash dividends (RMB) (tax inclusive) 185,945,476.70
Cash dividends in other forms (such as share repurchase)
0.00
(RMB)
Total cash dividends (including those in other forms) (RMB) 185,945,476.70
Distributable profit (RMB) 1,495,323,958.98
Total cash dividends (including those in other forms) as % of
100%
total profit distribution
Cash dividend policy
If the Company is in a mature development stage and has no plans for any significant expenditure, in profit allocation, the ratio of
cash dividends in the profit allocation shall be 80% or above.
Details about the proposal for profit distribution and converting capital reserve into share capital
The Board has approved a final dividend plan as follows: based on the share capital of 595,979,092 shares, a cash dividend of
RMB3.12 (tax inclusive) per 10 shares is to be distributed to the shareholders, with no bonus issue from either profit or capital
reserves.
XI Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures
for Employees
□ Applicable Not applicable
No such cases in the Reporting Period.
XII Construction and Implementation of Internal Control System during the Reporting
Period
1. Internal Control Construction and Implementation
During the Reporting Period, the Company established, improved and effectively implemented internal control according to the
Basic Code for Internal Control of Enterprises, the Guidelines on Internal Control of Listed Companies and the Company's actual
situation, to ensure the legitimacy and compliance of business and management, guarantee scientific and rational operating
procedures and promote the normal and orderly functioning of all major processes.
Building on the issuance of the Guidelines for the Construction of Risk, Internal Control, and Compliance System of SZPRD, the
Company regularly reviewed the weaknesses and deficiencies in the risk, internal control, and compliance systems. In response to
new business, changes, and issues, it specified measures to address compliance in key business areas and critical processes,
promptly carried out relevant system abolishment, revision, and establishment work, and organized the release of the
60
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Comprehensive Risk Management Manual and Internal Control Manual. By formalizing compliance management experience
through rules and regulations, the Company simultaneously conducted specialized training on risk management and internal
control for 120 employees, aiming to extend internal control from the group headquarters to all subsidiaries, continuously
expanding the management scope and effectively broadening the coverage of risk management and internal control efforts.
2. Material Internal Control Weaknesses Identified for the Reporting Period
□ Yes No
XIII Management and Control of Subsidiaries by the Company during the Reporting
Period
Problems Follow-up
Name of Integratio Settlement
Integration plan encountered in Solutions taken settlement
company n progress progress
integration plan
1. Develop a plan for transferring business
management rights;
2. Speed up the enhancement of modern
corporate systems, promote the
modernization of corporate governance
systems and capabilities, and establish a
robust hierarchical authorization and
control system;
3. Explore actions to minimize losses or
reverse losses after the unit has moved
1. Heavy personnel
Transfer of beyond the support period of the original
burdens; 2.
operational shareholders, drive ongoing quality
Shenzhen Disparities exist in The work is
management improvement and efficiency gains, and None at
Property Complete the salary and being
authority to ITC establish a collaborative business working the
Management d benefits system; 3. progressed as
Property mechanism; moment
Co., Ltd. Inability of the per the plan.
Management in 4. Research the professional advantages of
cadre pool to meet
2023 supporting service companies in areas such
operational needs
as Electromechanical maintenance and
elevator maintenance, establish seamless
connections in the upstream and
downstream industry chains, and enhance
business support capabilities; and
5. Deepen human resources reform,
establish rules and regulations, establish a
sound compensation management system,
and continue to advance market-oriented
employment reform.
1. Heavy personnel 1. Develop a plan for transferring business
burdens, severe management rights;
aging of cadres, and 2. Speed up the enhancement of modern
Transfer of insufficient reserves corporate systems, promote the
Shenzhen
operational of reserve cadres; 2. modernization of corporate governance
Shenfubao The work is
management Disparities exist in systems and capabilities, and establish a None at
Hydropower Complete being
authority to ITC the salary and robust hierarchical authorization and the
Municipal d progressed as
Property benefits system; 3. control system; moment
Service Co., per the plan.
Management in Subpar standard of 3. Explore actions to minimize losses or
Ltd.
2023 business; 4. reverse losses after the unit has moved
Significant pressure beyond the support period of the original
to reduce losses and shareholders, drive ongoing quality
turn losses around. improvement and efficiency gains, and
61
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
establish a collaborative business working
mechanism;
4. Research the professional advantages of
supporting service companies in areas such
as hydroelectric maintenance and
landscaping management, establish
seamless connections in the upstream and
downstream industry chains, and enhance
business support capabilities; and
5. Deepen human resources reform,
establish rules and regulations, establish a
sound compensation management system,
and continue to advance market-oriented
employment reform.
1. Develop a plan for transferring business
management rights;
2. Speed up the enhancement of modern
corporate systems, promote the
modernization of corporate governance
systems and capabilities, and establish a
robust hierarchical authorization and
1. Heavy personnel
control system;
burdens, severe
3. Explore actions to minimize losses or
aging of cadres, and
reverse losses after the unit has moved
Transfer of insufficient reserves
beyond the support period of the original
Shenzhen operational of reserve cadres; 2.
shareholders, drive ongoing quality The work is
Shenfubao management Disparities exist in None at
Complete improvement and efficiency gains, and being
Property authority to ITC the salary and the
d establish a collaborative business working progressed as
Development Property benefits system; 3. moment
mechanism; per the plan.
Co., Ltd. Management in Subpar standard of
4. Research the professional advantages of
2023 business; 4.
supporting service companies in areas such
Significant pressure
as urban services, establish seamless
to reduce losses and
connections in the upstream and
turn losses around.
downstream industry chains, and enhance
business support capabilities; and
5. Deepen human resources reform,
establish rules and regulations, establish a
sound compensation management system,
and continue to advance market-oriented
employment reform.
1. Develop a plan for transferring business
management rights;
1. Heavy personnel 2. Speed up the enhancement of modern
burdens, severe corporate systems, promote the
aging of cadres, and modernization of corporate governance
Transfer of insufficient reserves systems and capabilities, and establish a
Shenzhen operational of reserve cadres; 2. robust hierarchical authorization and
The work is
Free Trade management Disparities exist in control system; None at
Complete being
Zone Security authority to ITC the salary and 3. Explore actions to minimize losses or the
d progressed as
Service Co., Property benefits system; 3. reverse losses after the unit has moved moment
per the plan.
Ltd. Management in Subpar standard of beyond the support period of the original
2023 business; 4. shareholders, drive ongoing quality
Significant pressure improvement and efficiency gains, and
to reduce losses and establish a collaborative business working
turn losses around. mechanism;
4. Research the professional advantages of
supporting service companies in areas such
62
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
as security service, establish seamless
connections in the upstream and
downstream industry chains, and enhance
business support capabilities; and
5. Deepen human resources reform,
establish rules and regulations, establish a
sound compensation management system,
and continue to advance market-oriented
employment reform.
1. Develop a plan for transferring business
management rights;
2. Speed up the enhancement of modern
corporate systems, promote the
1. Heavy personnel
modernization of corporate governance
burdens, severe
systems and capabilities, and establish a
aging of cadres, and
robust hierarchical authorization and
Transfer of insufficient reserves
control system;
Shenzhen operational of reserve cadres; 2.
3. Explore actions to minimize losses or The work is
Foreign Trade management Disparities exist in None at
Complete reverse losses after the unit has moved being
Property authority to ITC the salary and the
d beyond the support period of the original progressed as
Management Property benefits system; 3. moment
shareholders, drive ongoing quality per the plan.
Co., Ltd. Management in Subpar standard of
improvement and efficiency gains, and
2023 business; 4.
establish a collaborative business working
Significant pressure
mechanism; and
to reduce losses and
4. Deepen human resources reform,
turn losses around.
establish rules and regulations, establish a
sound compensation management system,
and continue to advance market-oriented
employment reform.
XIV Evaluation Report or Independent Auditor’s Report on Internal Control
1. Internal Control Evaluation Report
Disclosure date of the internal control
30 March 2024
self-evaluation report
Index to the disclosed internal control
http://www.cninfo.com.cn
self-evaluation report
Evaluated entities’ combined assets as %
100.00%
of consolidated total assets
Evaluated entities’ combined operating
revenue as % of consolidated operating 100.00%
revenue
Identification standards for internal control weaknesses
Weaknesses in internal control over Weaknesses in internal control not
Type
financial reporting related to financial reporting
Serious defect: Major defects:
1. the control environment is invalid; 1. Serious violation of national laws and
2. Commitment of major fraud by regulations leading to major litigation, or
directors, supervisors or senior investigation of regulatory agencies,
Nature standard management of the Company; ordered suspension of business for
3. the audit institution discovered the rectification, investigation for criminal
current financial report had great defect responsibility or replacement of senior
while the internal control of the managers;
Company didn’t found out during the 2. Abnormal major changes of directors,
operating process; supervisors, senior management and
63
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
4. Correction of major misstatement in main technical personnel of the
financial reports reported or disclosed by Company;
the Company; 3. Major decision-making errors due to
5. the supervision of the Company’s lack of internal democratic decision-
Audit and Risk Management Committee making procedures or unscientific
and the internal audit department on the procedures;
internal control was invalid. 4. Serious loss of core management or
Important defect: technical personnel;
1. didn’t abide by the universally 5. Vicious negative news frequently
acknowledged accounting standard to appeared in the media, involving a wide
choose and apply the accounting policies; range and negative existing influence;
2. had not built up the anti-fraud process 6. Significant impact on the Company’s
and the control measures; production and operation due to lack of
3. had not built up the corresponding system control or system failure of
control mechanism or had not executed important business;
the corresponding compensating control 7. Major defects of internal control
for the accounting treatment which was evaluation to be rectified;
unconventional or with special 8. Any other negative circumstances
transaction; generating significant impact on the
4. the control during the process of the Company.
financial report at the period-end existed Significant defects:
one or multiple defects that could not
guarantee the compile of the financial 1. Incomplete democratic decision-
report reach the goal of being real and making process that affects production
complete; and operation of the Company;
5. Important or general defects of internal 2. Violation of internal rules and
control to be rectified. regulations leading to important losses;
Common defect: refers to the other 3. Exposure of negative news by the
control defect except for the above great media leading to significant impact on
defect and significant defect. the Company;
4. Important defects of important
business regulations or system to be
rectified;
5. Any other negative case leading to
great impact on the Company.
Common defects: any other control
defect except for the above major and
significant defects.
Serious defect: Major defects: direct property loss ≥
potential misstatement of the operating 1.00% of net assets of the previous year;
income≥1% of the operating income of Significant defects: 0.5% of net assets of
the consolidated statements of the the previous year ≤ direct property loss <
Company, potential misstatement of the 1.00% of net assets of the previous year;
total assets amount≥0.30% of the total Common defects: direct property loss <
assets of the consolidated statements of 0.5% of net assets of the previous year.
the Company, potential misstatement of
the net assets≥1.00% of the net assets of
the consolidated statements of the
Company.
Important defect:
Quantitative standard 0.50% of the operating income of the
consolidated statements of the
Company≤misstatement<1% of the
operating income of the consolidated
statements of the Company; 0.15% of the
total assets of the consolidated statements
of the Company ≤misstatement<0.30%
of the total assets of the consolidated
statements of the Company, 0.5% of the
net assets of the consolidated statements
of the Company ≤misstatement<1% of
the net assets of the consolidated
statements of the Company.
Common defect:
64
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
misstatement of the operating
income<0.5% of the operating income of
the consolidated statements of the
Company, misstatement of the total
assets amount<0.15% of the total assets
amount of the consolidated statements of
the Company, misstatement of the net
assets<0.5% of the net assets of the
consolidated statements of the Company.
Number of material weaknesses in
0
internal control over financial reporting
Number of material weaknesses in
internal control not related to financial 0
reporting
Number of serious weaknesses in internal
0
control over financial reporting
Number of serious weaknesses in internal
0
control not related to financial reporting
2. Independent Auditor’s Report on Internal Control
Applicable □ Not applicable
Opinion paragraph in the independent auditor’s report on internal control
We believe that Shenzhen Properties & Resources Development (Group) Ltd. maintained efficient internal control of financial
reports in all significant aspects according to “Basic Standards of Corporate Internal Control” and relevant regulations.
Independent auditor’s report on internal control disclosed or not Disclosed
Disclosure date 30 March 2024
Index to such report disclosed http://www.cninfo.com.cn
Type of the auditor’s opinion Unmodified unqualified opinion
Material weaknesses in internal control not related to financial
None
reporting
Indicate by tick mark whether any modified opinion is expressed in the independent auditor’s report on the Company’s internal
control.
□ Yes No
Indicate by tick mark whether the independent auditor’s report on the Company’s internal control is consistent with the internal
control self-evaluation report issued by the Company’s Board.
Yes □ No
XV Remediation of Problems Identified by Self-inspection in the Special Action on the
Governance of Listed Companies
Not applicable.
65
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Part V Environmental and Social Responsibility
I Major Environmental Issues
Indicate by tick mark whether the Company or any of its subsidiaries is a heavily polluting business identified by the environmental
protection authorities of China.
□ Yes No
Administrative penalties imposed for environmental issues during the Reporting Period
Name of the Impact on the
Remediation
company or production and
Penalty reason Violation situation Penalty result measures of the
subsidiary operation of the
Company
company listed companies
N/A N/A N/A N/A N/A N/A
Other environmental information disclosed with reference to key emission units
The Company attaches great importance to environmental protection and strictly implements relevant laws and regulations. During
the Reporting Period, no major environmental violations occurred and no administrative penalties were imposed on environmental
protection. In 2023, Huangcheng Real Estate Company, a subsidiary of the Company, had construction projects: the Humen Sea
Bay Project in Dongguan and Guangming Yutang Shangfu Project in Shenzhen, which were both located near major roads in the
areas and close to residential communities and municipal roads, with strict ecological requirements for all environmental work.
Since the commencement of construction, efforts have been made to actively carry out pollution prevention, pollution control, dust
prevention, noise reduction, and other works to enhance the satisfaction of the surrounding residents. The environmental risk
prevention responsibilities of the project management department were diligently carried out, with active cooperation with
environmental regulatory personnel for on-site inspections, strict adherence to environmental impact assessment and "three
simultaneous" requirements, and the standardization of methods for wastewater discharge, dust reduction, and noise reduction. The
projects under construction in Humen Sea Bay and Guangming Yutang Shangfu are planned with measures conducive to
environmental protection and pollution control. The requirement is for environmental protection and pollution control facilities to
be designed, constructed, and utilized simultaneously with the main engineering works. Various pollutants (such as exhaust gas,
wastewater, garbage, industrial waste residue, noise, oil pollution, and various radioactive and non-radioactive pollutants
contained in building materials) and all types of building materials shall be effectively managed and meet the required standards.
The construction projects, Lanhu Times Phase 1 and Phase 2, of Rongyao Real Estate Company, a subsidiary of the Company, are
situated near the main thoroughfare Osmanthus Road in the Guanlan area. The vicinity of the projects is predominantly industrial
parks, with a national environmental monitoring station and a school to the south of the site, and residential buildings at the
northeast corner of the site. Since the commencement of construction, the project has established an organizational structure for
pollution prevention and control management and a system of pollution prevention and control measures. The overall planning
incorporates measures favorable to environmental protection and pollution control, making full use of the terrain and strictly
implementing the soil and water conservation plan.
Actions taken to reduce carbon dioxide emissions during the Reporting Period and the impact:
□ Applicable Not applicable
Reasons for not disclosing other environmental information
Neither the Company nor any of its subsidiaries is a heavily polluting business identified by the environmental protection
authorities of China.
66
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
II Social Responsibility
(1) Annual tax payments and cash dividends.
Shenzhen Property Group and its subsidiaries fulfilled a tax payment obligation of RMB42.87 million in the fiscal year 2023 and
distributed a cash dividend of RMB215,148,500 to shareholders as per the Company's bylaws and shareholder resolutions. In the
fiscal year 2023, Shenzhen Property Group showcased exceptional operational results and financial stability, demonstrating its tax
compliance awareness and sense of responsibility. This also indicates a sound financial position and a consistent growth in
profitability, fostering a mutually beneficial relationship between the Company and its shareholders. These accomplishments not
only showcase the Company's financial prowess and governance competencies but also exemplify its commitment to ethical
business practices and social responsibility. In future development, Shenzhen Property Group will continue to maintain a prudent
business strategy and sound financial condition, creating more value for its shareholders and society.
(2) Solving unemployment problems.
Shenzhen Property Group and its affiliated enterprises provided a total of 221 positions to the society in 2023, hiring a total of
1,369 individuals, including 18 fresh graduates, 34 military veterans, and 4 disabled individuals. Shenzhen Property Group
actively embraced social responsibility by actively advancing a strategy of talent diversification, bringing new vigor and
innovative capabilities to its development. As a socially responsible company, Shenzhen Property Group consistently adheres to a
people-oriented development philosophy, emphasizing talent recruitment and cultivation, while also making positive contributions
to social harmony and stability.
(3) Employee care.
In order to strengthen the people-centered development philosophy and implement the Group's work mechanism of assistance in
depth, the Party Committee of the Shenzhen Property Group held a symposium to extend regard to the employees in difficulty and
the symposium of "July 1st" Party members in need before the Spring Festival. Before the Spring Festival employee welfare event
for those in need, the Group conducted an overall and scrupulous investigation, identification and category-based registration and
record, and confirmed 55 persons as the targets in need of assistance, including 12 Party members in difficulty. A total of 4 Party
members in need were comforted during the "July 1st" event for Party members facing difficulties. In order to safeguard the safety
of frontline workers operating in hot weather conditions, the general Party branch of Wuhe Urban Renewal Company and
Yangzhou Shouxihu Jingyue Company, both subsidiaries of Shenzhen Property Group, organized the "deliver beverages to
construction sites, pool solidarity and strength to facilitate development" event, providing cooling tea and refreshing drinks to
frontline workers.
(4) Carry out blood donation activity.
Shenzhen Property Group's subsidiary, ITC Property Management, is fully committed to creating a "Virtue Culture" centered
around volunteer activities, which has launched the "red flag, red action" public welfare blood donation campaign across various
enterprises nationwide. Over the past two years, the scope of public welfare blood donation activities has expanded from the
Shenzhen region to encompass the entire country. In 2023, a total of 730 individuals participated, with 560 successfully donating
blood, amounting to a total volume of 190,700ml. The "red flag, red action" campaign started in 2011 and has now held twelve
sessions. It has organized a total of 1,171 instances of voluntary blood donation by Party members and the public, with a
cumulative blood donation volume exceeding 399,600ml.
67
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
(5) Longhua District General Union's charitable donations.
The Rongyao Real Estate Company, a subsidiary of Shenzhen Property Group, actively responded to the government's call to
participate in donation activities, which donated a total of RMB5,000 to the Longhua District General Union, to be used for caring
for new forms of employment workers in Longhua District, workers on the edge of difficulty, children of workers in need,
conducting emergency relief and warmth initiatives, promoting charitable activities, publicizing public welfare projects, and
purchasing materials.
III Efforts in Poverty Alleviation and Rural Revitalization
SZPRD and its affiliated business organisations organised and carried out consumption assistance activity, and spent
RMB1,620,000 in total on the procurement of agricultural products through consumption assistance in 2023.
68
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Part VI Significant Events
I Fulfillment of Commitments
1. Commitments of the Company’s Actual Controller, Shareholders, Related Parties and Acquirers, as
well as the Company Itself and other Entities Fulfilled in the Reporting Period or Ongoing at the Period-
end
Applicable □ Not applicable
Date of
Type of Details of Term of
Commitment Promisor commitment Fulfillment
commitment commitment commitment
making
Wholly-owned
subsidiary
Shenzhen
Construction
Development
and majority-
owned
subsidiary SPG
of SIHC deal
with real estate
Commitments operation and
Commitments
made in commercial
on horizontal
acquisition Shenzhen house sales,
competition,
Investment which belong to 6 September Normal
documents or related-party Three years
Holdings Co., the same 2018 performance2
shareholding transactions
Ltd. (SIHC) industry of the
alteration and capital
Listed
occupation
documents Company, and
has horizontal
competition
with the Listed
Company. To
avoid
horizontal
competition,
SIHC make the
following
commitment.1
To reduce and
Commitments
Commitments standardize
made in on horizontal related
acquisition Shenzhen
competition, transactions
Investment 6 September Normal
documents or related-party with the Listed Long-term
Holdings Co., 2018 performance
shareholding transactions Company,
Ltd.
alteration and capital SIHC makes
occupation the following
documents
commitment.3
Fulfilled on
Yes
time
Note 1: Wholly-owned subsidiary Shenzhen Construction Development and majority-owned subsidiary SPG of SIHC deal with
real estate operation and commercial house sales, which belong to the same industry of the Listed Company, and has horizontal
competition with the Listed Company. To avoid horizontal competition, SIHC make the following commitments: 1. On the
horizontal competition solution of Shenzhen Construction Development: as the holding shareholder of the Listed Company, during
the listing period at Shenzhen Stock Exchange of the Listed Company, as for the current business of Shenzhen Construction
Development which has horizontal competition with the Listed Company, within the scope permitted by law and regulation, within
69
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
12 months from the equity of SZPRD being transferred to SIHC, SIHC will start the solution with practical operability among
below horizontal competition solution timely and complete implementation of the solution within 3 years from the date that the
equity of SZPRD is transferred to SIHC to solve current horizontal competition problems: (1) Shenzhen Construction
Development signs asset custody agreement with the Listed Company, entrusts the assets which has direct competition with the
Listed Company to the Listed Company, confirms fair custodian fee at the same time, and takes effective measures to solve
horizontal competition within commitment period; (2) Inject assets with direct competition with the Listed Company into the
Listed Company; (3) Transfer assets with direct competition with the Listed Company to unrelated third party; (4) other measures
which can solve horizontal competition effectively and is favorable for protecting the interest of the Listed Company and legal
interests of other shareholders. Before solving current horizontal competition, while company, enterprise, economic organization
(not including enterprises controlled by the Listed Company, hereinafter referred to as subordinated Companies) which the Listed
Company and SIHC hold controlling shares or controls actually have business, in case the involved dispute, etc. have major
influence on the business, SIHC should keep neutral as a controlling shareholder to ensure that the Listed Company and
subordinated Companies can take part in market competition on the principle of fair competition. 2. Horizontal competition
solution of SPG: From 14 September 2016 to now, SPG has had stock suspension because of major assets restructuring. According
to Review Opinions on Delaying Stock Resumption because of Major Assets Restructuring of SPG announced by CITIC Securities
and Huatai Securities on 26 November 2016, the restructuring solution is that SPG plans to issue A share and / or use currency to
purchase 100% equity of Evergrande Group (hereinafter referred to as “the restructuring of SPG”). On 9 November 2020, SPG
issued an announcement that the current condition to continue to promote the major assets restructuring was not sound yet based
on the current market environment and decided to terminate this transaction to safeguard interests of the company and all
shareholders. After the termination of this transaction, SIHC is still the controlling shareholder of SPG. For business of SPG which
has horizontal competition with the Listed Company, SIHC, within the scope permitted by law and regulation, SIHC will start a
rational horizontal competition solution according to actual situation at the time within 12 months after the termination of
reconstruction of SPG and stock resumption announcement date, and fulfill announcement obligation, and SPG will complete to
implement the solution and solve the horizontal competition between SZPRD and SPG within 3 years from the date SPG
terminates the reconstruction and announces stock resumption. 3. Other commitments to avoid horizontal competition: as the
controlling shareholder of the Listed Company and during the listing period of the Listed Company at Shenzhen Stock Exchange,
other subordinated Companies of SIHC will not engage in relevant business which has direct horizontal business competition with
the Listed Company in new business fields except for in the business field where it already has had horizontal competition with the
Listed Company. Shenzhen Investment Holdings promises not to seek improper benefits with the position of controlling
shareholder of the Listed Company and damage the interest of the Listed Company and its shareholders. In case of violating above
commitment, SIHC shall undertake corresponding legal liabilities, including but not limited to undertaking compensation
responsibilities for all losses caused to the Listed Company.
Note 2: SIHC has always been actively committed to fulfilling its relevant commitments. During the term of commitment, SIHC
did not seek any illegitimate interests as the controlling shareholding of SZPRD or damage any rights and interests of SZPRD and
its shareholders. During the term of commitment, SIHC actively collated the underlying assets and businesses of Shenzhen
Construction Development (Group) Company and devoted itself to developing practical and feasible plans as soon as possible to
solve the horizontal competition issue for SZPRD. It also actively promoted the restructuring of SPG. However, given the
objective circumstances, SIHC failed to fulfill the original commitment to avoid horizontal competition. SIHC re-issued the Letter
on Changing the Commitment to Avoiding Horizontal Competition on 31 August 2021 and such commitment change matter was
approved at the first extraordinary general meeting of 2021 held on 27 September 2021. For more details, see the Announcement
on the Application by the Company's Controlling Shareholder for Changing the Commitment to Avoiding Horizontal Competition
(Announcement No.: 2021-32) disclosed by the Company on www.cninfo.com.cn on 11 September 2021.
Note 3: To reduce and standardize related transactions with the Listed Company, as controlling shareholder of the Listed company
and during the listing period of the Listed Company at Shenzhen Exchange Stock, SIHC promises: 1. SIHC and its controlling or
70
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
actually controlled companies, enterprises, economic organizations (not including enterprises controlled by the Listed Company,
hereinafter referred to as the “subordinated companies”) will strictly exercise the rights of shareholders according to provisions of
laws, regulations, and other normative documents, and fulfill the obligations of shareholders, and keep the independence of the
Listed Company in assets, finance, employees, business and agency, etc. 2. SIHC promises not to use its position of controlling
shareholder to promote board of shareholders or board of directors to make resolutions which may damage the legal interest of the
Listed Company or other shareholders; 3. SIHC and its subordinated companies will try their best to avoid having related
transactions with the Listed Company. In case the transaction with the Listed Company is inevitable, SIHC and its subordinated
companies will have transaction with the Listed Company on the basis of equality and free will, according to fair, rational and
normal commercial transaction conditions, will not require or accept conditions which is more preferential than the Listed
Company gives to the third party in any fair market transactions, and strictly fulfill various related transactions with the Listed
Company with good will. 4. SIHC and its subordinated companies will strictly fulfill decision making procedures and relevant
information disclosure obligations of related transactions according to articles of association of the Listed Company and relevant
laws and regulations. 5. SIHC and its subordinated companies will make sure that they will not seek special interests beyond above
stipulations by having related transactions with the Listed Company, will not use related transactions to illegally transfer funds and
profits of the Listed Company and to maliciously damage the legal interests of the Listed Company and its shareholders. 6. As for
current related transaction with the Listed Company, within the scope permitted by laws and regulations, SIHC promises to
confirm rational related transaction solution within 12 months after the Company shares are transferred to SIHC, and complete to
implement the solution within 5 years after the Company shares are transferred to SIHC, to solve such related transactions
completely. The specific forms include: (1) After current related transaction contract expires, it will not be renewed. In case
contract renewal is necessary according to the operation needs of the Listed Company, it will fulfill relevant decision making
procedures strictly according to procedures of related transactions. (2) Under the precondition of possible realization, terminate
contract which is being fulfilled, and adopt marketized and open bid invitation, etc., inquire again on service items involved in
such related transactions to confirm appropriate service provider. In case related transaction is involved, it should fulfill relevant
decision making procedures according to related transaction procedures. (3) In case there is possibility of price re-negotiation in
the related transaction contract which is being fulfilled, conduct price negotiation again, make the contract amount after re-pricing
conform to market price and not higher than the amount of contract which is being fulfilled, and strictly fulfill relevant decision
making procedures according to related transaction procedures.(4) Other appropriate measures which can reduce and finally
eliminate current related transaction but not necessary. 7. In case of violating above commitments, SIHC shall undertake
corresponding legal liabilities, including but not limited to undertaking compensation liability for all the losses caused to the
Listed Company.
2. Where there had been an earnings forecast for an asset or project and the Reporting Period was still
within the forecast period, explain why the forecast has been reached for the Reporting Period.
□ Applicable Not applicable
II Occupation of the Company’s Capital by the Controlling Shareholder or Its Related
Parties for Non-Operating Purposes
□ Applicable Not applicable
No such cases in the Reporting Period.
III Irregularities in the Provision of Guarantees
□ Applicable Not applicable
71
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
No such cases in the Reporting Period.
IV Explanations Given by the Board of Directors Regarding the Latest “Modified Opinion”
Issued by the Independent Auditor
□ Applicable Not applicable
V Explanations Given by the Board of Directors, the Supervisory Board and the
Independent Directors (if any) Regarding the Independent Auditor's “Modified Opinion” on
the Financial Statements of the Reporting Period
□ Applicable Not applicable
VI YoY Changes to Accounting Policies and Estimates and Correction of Material
Accounting Errors
Applicable □ Not applicable
As of January 1, 2023, the Company adopts the relevant provisions of Accounting Standards Interpretation for Business
Enterprises No. 16 (CK (2022) No. 31). For a single transaction that is not a business combination, does not affect accounting
profit or taxable income (or deductible loss) at the time of the transaction, and the initial recognition of assets and liabilities results
in an equal amount of taxable temporary difference and deductible temporary difference (including a lease transaction in which the
lessee initially recognizes the lease liability on the beginning date of the lease term and credits the right to use assets), As well as
due to the existence of fixed assets and other disposal obligations to recognize the projected liabilities and include the cost of the
relevant assets, hereinafter referred to as the single transaction applicable to this interpretation), does not apply to the Accounting
Standards for Business Enterprises 18 - Income tax Article 11 (2), 13 on the exemption of the initial recognition of deferred
income tax liabilities and deferred income tax assets provisions. For the taxable temporary differences and deductible temporary
differences arising from the initial recognition of assets and liabilities of the transaction, the enterprise shall recognize the
corresponding deferred income tax liabilities and deferred income tax assets respectively at the time of the transaction in
accordance with the relevant provisions of Accounting Standard for Business Enterprises No. 18 - Income Tax. The Company has
retroactively adjusted the comparative accounting statements and cumulative impact figures based on the above accounting policy
changes, resulting in the following impacts:
Content and reason of changes to
Statement Name and amount of statement item materially affected
accounting policies
On December 31, 2022 the impact of deferred tax assets is
RMB24,500,761.16, the impact of deferred tax liabilities is
Consolidated balance RMB22,737,325.56, the impact of surplus reserves is
At the initiation of the lease sheets RMB5,970.29, the impact of retained earnings is
transaction, the lessee acknowledges RMB1,697,650.08, and the impact of minority interest is
the lease liability and incorporates the RMB59,815.23.
right-of-use asset without exempting
the initial recognition of deferred tax consolidated income The impact of income tax expense is RMB330,314.64 in
liabilities and assets, resulting in the statement 2022.
recognition of the respective deferred On December 31, 2022 the impact of deferred tax assets is
tax liabilities and deferred tax assets at RMB869,290.80, the impact of deferred tax liabilities is
the transaction occurrence. Balance sheet of the
RMB809,587.96, the impact of surplus reserves is
Company as the Parent
RMB5,970.29, and the impact of retained earnings is
RMB53,732.55.
Income statement of the
The impact of income tax expense is RMB2,195.78 in 2022.
Company as the Parent
72
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Content and reason of changes to
Statement Name and amount of statement item materially affected
accounting policies
On December 31, 2022 the impact of deferred tax assets is
RMB24,500,761.16, the impact of deferred tax liabilities is
Consolidated balance RMB22,737,325.56, the impact of surplus reserves is
At the initiation of the lease sheets RMB5,970.29, the impact of retained earnings is
transaction, the lessee acknowledges RMB1,697,650.08, and the impact of minority interest is
the lease liability and incorporates the RMB59,815.23.
right-of-use asset without exempting
the initial recognition of deferred tax consolidated income The impact of income tax expense is RMB330,314.64 in
liabilities and assets, resulting in the statement 2022.
recognition of the respective deferred On December 31, 2022 the impact of deferred tax assets is
tax liabilities and deferred tax assets at RMB869,290.80, the impact of deferred tax liabilities is
the transaction occurrence. Balance sheet of the
RMB809,587.96, the impact of surplus reserves is
Company as the Parent
RMB5,970.29, and the impact of retained earnings is
RMB53,732.55.
Income statement of the
The impact of income tax expense is RMB2,195.78 in 2022.
Company as the Parent
VII YoY Changes to the Scope of the Consolidated Financial Statements
Applicable □ Not applicable
For the detailed changes to the scope of the Company’s consolidated statements of the Reporting Period, see “Part X Financial
Statements”, IX Changes to the Scope of the Consolidated Financial Statements.
VIII Engagement and Disengagement of Independent Auditor
Current independent auditor:
Name of the domestic independent auditor Baker Tilly China Certified Public Accountants (LLP)
The Company’s payment to the domestic independent auditor
95
(RMB’0,000)
How many consecutive years the domestic independent auditor
4 years
has provided audit service for the Company
Names of the certified public accountants from the domestic
Chen Zihan, Zhong Qinfang
independent auditor writing signatures on the auditor’s report
How many consecutive years the certified public accountants
Four years for Chen Zihan, two years for Zhong Qinfang
have provided audit service for the Company
Indicate by tick mark whether the independent auditor was changed for the Reporting Period.
□Yes No
Independent auditor, financial advisor or sponsor engaged for the audit of internal controls:
Applicable □ Not applicable
In this Reporting Period, the Company engaged Baker Tilly China Certified Public Accountants (LLP) for its internal control audit
and paid an internal control audit fee of RMB0.2 million to it for the period.
IX Possibility of Delisting after Disclosure of this Report
□ Applicable Not applicable
73
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
X Insolvency and Reorganization
□ Applicable Not applicable
No such cases in the Reporting Period.
XI Major Legal Matters
Applicable □ Not applicable
Involv
ed
amoun Index to
Provis Execution of Disclosure
General information t Progress Decisions and effects disclosed
ion decisions date
(RMB information
’0,000
)
Arbitration awards on two cases
were given on 23 and 24 March
2023 successively. According to
As a result of
Arbitration case of property the conclusion of arbitration
the turnover in
contract dispute between awards, the High-tech Zone
the owners'
the Fourth Owners' Branch should return
committee,
Committee of Shenzhen approximately RMB540,000 of
the new
Nanshan District Software public revenue to the Owners'
committee has
Park (Applicant) and Committee of Shenzhen
not been
Shenzhen ITC Technology Nanshan District Software Park
formed yet,
Park Service Co., Ltd. (in spite of RMB32 million
and there is no
(Respondent 1), the Branch 73.53 Not Closed requested by the Owners'
corporate
in High-Tech Zone Committee) and bear a part of
account.
(Respondent 2) for arbitration fee; in regard to the
Discussions
Software Park Phase I. The arbitration case between the
have taken
Applicant requested an ITC Technology Park Company
place with the
award to the Respondent 1 and the Owners' Committee of
court, leading
and 2 to return the owners' Shenzhen Nanshan District
to a temporary
public revenue and bear the Software Park, all requests of
suspension of
attorney's fees. the latter have been rejected by
payment.
the arbitration tribunal (in spite
of RMB13 million requested by
the Owners' Committee).
Shenzhen Qitian Sunshine
Hotel Management Co.,
Ltd. (plaintiff) sued
ShenZhen Properties &
Resources Development
(Group) Ltd. (defendant) for Shenzhen
property leasing contract Qitian
dispute, requesting the Sunshine The court of second instance
defendant to pay 105.0 Hotel has rejected the appeal request Enforcement,
Not
compensation for interior 9 Managem of Qitian Sunshine Hotel and retrial process
decoration of the relocated ent Co., upheld the original verdict
house and relocation fee of Ltd. filed
the leased house and to a retrial.
return the subsidy fee of the
leased house, etc. The first
instance judgment reads
that the plaintiff Shenzhen
Qitian Sunshine Hotel
74
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Management Co., Ltd. shall
pay rent of
RMB1,050,913.6 to the
defendant ShenZhen
Properties & Resources
Development (Group) Ltd.
within 10 days from the
effective date of this
judgment. The second-
instance court rejected the
appeal from Qitian Hotel,
upheld the original verdict,
and Qitian Hotel has now
applied for retrial.
Since the violation of the
Equity Transfer Contract
for the Urban Renewal
Project in Bangling
Community, Guanlan
The case
Subdistrict, Longhua
was heard
District, Shenzhen City
at
committed by the Shenzhen
Shenzhen
Xinhai Rongyao Real Estate
Court of
Development Co., Ltd.
Internatio
constituted material breach
nal
of contract, according to
17,13 Arbitratio
provisions of the contract, Not Not yet Not yet
3.68 n on 14
the Company is entitled to
December
require Shenzhen Xinhai
2023, and
Rongyao Real Estate
is
Development Co., Ltd. to
currently
pay compensation for its
waiting
investment loss at an annual
for the
interest rate of 11% of the
decision.
capital the Company
invested in the Lanhu
Shidai project. Therefore,
the Company filed an
arbitration.
On 26 February 2019, the The case
Company signed now
Repayment Agreement with enters the
Rongyao Real Estate, stage of For details,
Shenzhen Xinhai Rongyao appointing please refer to
Real Estate Development arbitrator the
Co., Ltd. and Shenzhen to set up Announcemen
Xinhai Holding Co., Ltd. arbitral t on Major
For details, see 72,21 tribunal. Arbitration of
Not Not yet Not yet 9 June 2023
Announcement on the 8.22 Afterward Subsidiary
Signing of Repayment , the (No.: 2023-
Agreement (Announcement responden 13) disclosed
No.: 2019-9) disclosed by t filed an by the
the Company on appeal for Company on
http://www.cninfo.com.cn. confirmati Cninfo.
According to provisions of on of
the Repayment Agreement, force of
Shenzhen Xinhai Rongyao the
75
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Real Estate Development arbitration
Co., Ltd. and Shenzhen agreement
Xinhai Holding Co., Ltd. to the
acknowledge to settle their Shenzhen
debts to Rongyao Real Intermedi
Estate. However, Shenzhen ate
Xinhai Investment People's
Development Co., Ltd., Court,
Shenzhen Chengjian Real resulting
Estate Management Co., in the
Ltd., Shenzhen Lianghong suspensio
Industry Co., Ltd. and n of the
Shenzhen Huaye Tiancheng arbitration
Investment Co., Ltd., as court's
their guarantors who trial on
assume joint and several the case.
liability, failed to settle all After the
debts as required by the confirmati
agreement. Therefore, on of
Rongyao Real Estate filed force of
an arbitration. the
arbitration
agreement
is
concluded
by the
court, the
arbitration
court will
inform
both
parties of
the
recovery
of the
arbitration
proceedin
gs.
See
Part X
See Part X See Part X
Financ
Summary of other contract Financial See Part X Financial Report- Financial
9,681 ial
disputes Report- XVI -2 Report- XVI -
Report
XVI -2 2
-XVI-
2
XII Punishments and Rectifications
□ Applicable Not applicable
No such cases in the Reporting Period.
XIII Credit Quality of the Company as well as Its Controlling Shareholder and Actual
Controller
□ Applicable Not applicable
76
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
XIV Major Related-Party Transactions
1. Continuing Related-Party Transactions
Applicable □ Not applicable
Obtai
As % of Appro
nable
Relati total ved Over
marke
onship Type Specif Pricin Total value of transa the Metho
Transa t price Index to
Related with of ic g value all ction appro d of Disclosur
ction for disclosed
party the transa transa princi (RMB’0 same- line ved settle e date
price same- information
Comp ction ction ple ,000) type (RMB line or ment
type
any transacti ’0,000 not
transa
ons )
ctions
Relate
d-
party
Wholl
transa
y-
ctions Proper Proper
owned Proper
Shenzhen gover ty ty
subsid ty 25 March
Bay ning
iary of manag manag manag 6,904. 7,892.
Technology sales 7,892.39 5.00% Yes Cash 2023
the ement ement ement 25 39
Developme of
Comp servic servic servic
nt Co., Ltd. comm
any as es
odity es es
the
and
parent
provid
ing of
labors
Relate
d-
party Proper
Sub- transa ty
subsid ctions manag Proper Proper Announcemen
Hebei gover
iary of ement ty ty t on Estimated
Shenbao ning 25 March
the servic manag manag 3,574. 4,016. Continuing
Investment sales 4,016.66 2.54% Yes Cash 2023
Comp of es and ement ement 01 66 Related-party
Developme
any as comm engine servic servic Transactions
nt Co., Ltd.
the odity ering es es in 2023 (No.:
parent and servic 2023-05)
provid es disclosed on
ing of
labors Cninfo
Relate
d-
party
Wholl
transa
y-
ctions
owned
Shenzhen gover Mana
subsid Marke 25 March
Bay ning gemen Agree
iary of t 6,248.
Technology purcha t ment 6,248.1 4.74% 8,160 No Cash 2023
the princi 1
Developme se of servic price
Comp ple
nt Co., Ltd. comm es
any as
odity
the
and
parent
provid
ing of
labors
Shenzhen Wholl Truste Marke 25 March
Agree
Shentou y- Truste e t 6,361. 6,164.
ment 6,164.06 40.59% No Cash 2023
Real Estate owned eship manag princi 61 06
price
Developme subsid ement ple
77
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
nt Co.,Ltd. iary of servic
the es of
Comp houses
any as
the
parent
24,321.2 24,99
Total -- -- -- -- -- -- -- --
1 9.87
Large-amount sales return in detail N/A
The total amount of daily related-party transactions of the Company in 2023 is expected to be
RMB342,640,300, and the actual total amount is RMB381,397,000. In predicting the routine related party
Give the actual situation in the Reporting transactions for the year 2023, the Company primarily considered market conditions and the business needs
Period (if any) where an estimate had
of both parties to estimate potential transaction amounts. The actual figures might deviate due to factors like
been made for the total value of
continuing related-party transactions by the development of both entities' businesses, actual requirements, and specific execution timelines. Such
type to occur in the Reporting Period discrepancies were deemed normal business conduct and were not expected to have a significant impact on
the Company's routine operations or financial results. For more details, see the Announcement on Estimated
Continuing Related-party Transactions in 2024 released on the same date as this report.
Reason for any significant difference
between the transaction price and the N/A
market reference price (if applicable)
2. Related-Party Transactions Regarding Purchase or Sales of Assets or Equity Interests
□ Applicable Not applicable
No such cases in the Reporting Period.
3. Related-Party Transactions Regarding Joint Investments in Third Parties
□ Applicable Not applicable
No such cases in the Reporting Period.
4. Credits and Liabilities with Related Parties
Applicable □ Not applicable
Indicate by tick mark whether there were any credits and liabilities with related parties for non-operating purposes.
Yes □ No
Receivable from related parties
Amount
Capital Amount
newly
Relations occupatio Beginnin received Current Ending
added in
Related hip with n for non- g balance in current Interest interest balance
Reason current
party the operating (RMB’0,0 period rate (RMB’0,0 (RMB’0,0
period
Company purposes 00) (RMB’0,0 00) 00)
(RMB’0,0
(yes/no) 00)
00)
The
parent
company
of the Business
Shenzhen subsidiary circulatin
Xinhai Rongyao g funds
No 20,150 20,150
Holdings Real before
Co., Ltd. Estate’s acquisitio
minority n
sharehold
er Xinhai
Rongyao
Shenzhen Minority Business No 33,047.29 33,047.29
78
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Xinhai sharehold circulatin
Rongyao er of the g funds
Real subsidiary before
Estate Rongyao acquisitio
Develop Real n
ment Co., Estate
Ltd.
Influence on the
Company’s operating All were within the risks control of the Company and not influenced the operating results and the
results and financial financial conditions.
condition
Liabilities payable to related parties
Amount
Amount
newly
Beginning returned in Current
Relation added in Ending
Related Formation balance current interest
with the current Interest rate balance
party reason (RMB’0,00 period (RMB’0,00
Company period (RMB’0,00
0) (RMB’0,00 0)
(RMB’0,00 0)
0)
0)
Shenzhen
Jifa Joint ventur Intercourse
4,229.67 4,229.67
Warehouse e funds
Co., Ltd.
Shenzhen
Tian’an
Internation
Joint ventur Intercourse
al Building 521.43 521.43
e funds
Property
Manageme
nt Co., Ltd.
Influence on the
Company’s operating All were within the risks control of the Company and not influenced the operating results and the
results and financial financial conditions.
condition
5. Transactions with Related Finance Companies
□ Applicable Not applicable
The Company did not make deposits in, receive loans or credit from and was not involved in any other finance business with any
related finance company or any other related parties.
6. Transactions with Related Parties by Finance Companies Controlled by the Company
□ Applicable Not applicable
The finance company controlled by the Company did not make deposits, receive loans or credit from and was not involved in any
other finance business with any related parties.
7. Other Major Related-Party Transactions
□ Applicable Not applicable
No such cases in the Reporting Period.
79
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
XV Major Contracts and Execution thereof
1. Entrustment, Contracting and Leases
(1) Entrustment
□ Applicable Not applicable
No such cases in the Reporting Period.
(2) Contracting
□ Applicable Not applicable
No such cases in the Reporting Period.
(3) Leases
□ Applicable Not applicable
No such cases in the Reporting Period.
2. Major guarantees
Applicable □ Not applicable
Unit: RMB'0,000
Guarantees provided by the Company as the parent and its subsidiaries for external parties (exclusive of those for subsidiaries)
Disclosu
re date Guarante
Actual Counter
of the Line of Actual Type of Term of Having e for a
guarante Collatera
Obligor guarante guarante occurren guarante guarante guarante expired related
e l (if any)
e line e ce date e e (if any) e or not party or
amount
announc not
ement
Guarantees provided by the Company for its subsidiaries
Disclosu
re date Guarante
Actual Counter
of the Line of Actual Type of Term of Having e for a
guarante Collatera
Obligor guarante guarante occurren guarante guarante guarante expired related
e l (if any)
e line e ce date e e (if any) e or not party or
amount
announc not
ement
Shenzhe
n
Rongyao 2019.11.
18 27 Equity,
Real Joint- 27-
October 500,000 Novemb 321,812 land use No Yes
Estate liability 2026.3.1
2019 er 2019 right
Develop 7
ment
Co., Ltd.
Total approved line Total actual amount
for such guarantees of such guarantees in
21,892.77
in the Reporting the Reporting Period
Period (B1) (B2)
Total approved line 500,000 Total actual balance 321,811.77
80
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
for such guarantees of such guarantees at
at the end of the the end of the
Reporting Period Reporting Period
(B3) (B4)
Guarantees provided between subsidiaries
Disclosu
re date Guarante
Actual Counter
of the Line of Actual Type of Term of Having e for a
guarante Collatera
Obligor guarante guarante occurren guarante guarante guarante expired related
e l (if any)
e line e ce date e e (if any) e or not party or
amount
announc not
ement
Total guarantee amount (total of the three kinds of guarantees above)
Total guarantee line Total actual
approved in the guarantee amount in
21,892.77
Reporting Period the Reporting Period
(A1+B1+C1) (A2+B2+C2)
Total actual
Total approved
guarantee balance at
guarantee line at the
500,000 the end of the 321,811.77
end of the Reporting
Reporting Period
Period (A3+B3+C3)
(A4+B4+C4)
Total actual guarantee amount (A4+B4+C4)
69.03%
as % of the Company’s net assets
Of which:
Balance of debt guarantees provided directly
or indirectly for obligors with an over 70% 321,811.77
debt/asset ratio (E)
Total of the three amounts above (D+E+F) 321,811.77
Compound guarantees:
3. Cash Entrusted to Other Entities for Management
(1) Cash Entrusted for Wealth Management
□ Applicable Not applicable
No such cases in the Reporting Period.
(2) Entrusted Loans
□ Applicable Not applicable
No such cases in the Reporting Period.
4. Other Major Contracts
□ Applicable Not applicable
No such cases in the Reporting Period.
81
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
XVI Other Significant Events
Applicable □ Not applicable
(1) Matters on the Public Listing Transfer of 100% Equity of Wholly-owned Subsidiary Shenzhen Jinghengtai Real Estate
Development Co., Ltd.
During the Reporting Period, the 21st meeting of the 10th Board of Directors and the first extraordinary general meeting of
shareholders in 2023 deliberated and approved the Proposal on the Public Listing Transfer of 100% Equity of Wholly-owned
Subsidiary Shenzhen Jinghengtai Real Estate Development Co., Ltd., which authorized the public listing transfer of 100% equity
of Shenzhen Jinghengtai Real Estate Development Co., Ltd. (hereinafter referred to as "Jinghengtai Company") on the Shenzhen
United Equity Exchange. On 22 December 2023, Jinghengtai Company received the Registration Notice issued by the Shenzhen
Market Supervision Administration. The business registration procedures related to this equity transfer transaction have been
completed, transferring 100% equity of Jinghengtai Company to Hualian Holdings. The Company no longer holds any equity in
Jinghengtai Company. For details, see the Announcement on the Public Listing Transfer of 100% Equity of Wholly-owned
Subsidiary Shenzhen Jinghengtai Real Estate Development Co., Ltd. (Announcement No.: 2023-28), the Announcement on
Progress of the Public Listing Transfer of 100% Equity of Wholly-owned Subsidiary Shenzhen Jinghengtai Real Estate
Development Co., Ltd. (Announcement No.: 2023-31), and the Announcement on Progress of the Public Listing Transfer of 100%
Equity of Wholly-owned Subsidiary Shenzhen Jinghengtai Real Estate Development Co., Ltd. (Announcement No.: 2023-37)
issued by the Company on www.cninfo.com.cn.
XVII Significant Events of Subsidiaries
□ Applicable Not applicable
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Part VII Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
Before Increase/decrease (+/-) After
Shares Shares as
as dividend
Percenta New dividend converted Subtot Percentage
Shares Other Shares
ge (%) issues converte from al (%)
d from capital
profit reserves
1. Restricted shares 1,898,306 0.32% 0 0 0 0 0 1,898,306 0.32%
1.1 Shares held by
0 0.00% 0 0 0 0 0 0 0.00%
the state
1.2 Shares held by
state-own Legal- 3,326 0.00% 0 0 0 0 0 3,326 0.00%
person
1.3 Shares held by
other domestic 1,894,980 0.32% 0 0 0 0 0 1,894,980 0.32%
investors
Among which:
shares held by
1,894,980 0.32% 0 0 0 0 0 1,894,980 0.32%
domestic legal
person
Shares held by
domestic natural 0 0.00% 0 0 0 0 0 0 0.00%
person
1.4 Oversea
0 0.00% 0 0 0 0 0 0 0.00%
shareholdings
Among which:
shares held by
0 0.00% 0 0 0 0 0 0 0.00%
oversea legal
person
Shares held by
oversea natural 0 0.00% 0 0 0 0 0 0 0.00%
person
2. Unrestricted
594,080,786 99.68% 0 0 0 0 0 594,080,786 99.68%
shares
2.1 RMB ordinary
526,475,543 88.34% 0 0 0 0 0 526,475,543 88.34%
shares
2.2 Domestically
67,605,243 11.34% 0 0 0 0 0 67,605,243 11.34%
listed foreign shares
2.3 Oversea listed
0 0.00% 0 0 0 0 0 0 0.00%
foreign shares
2.4 Other 0 0.00% 0 0 0 0 0 0 0.00%
100.00
3. Total shares 595,979,092 0 0 0 0 0 595,979,092 100.00%
%
Reasons for share changes:
□ Applicable Not applicable
Approval of share changes:
□ Applicable Not applicable
Transfer of share ownership:
83
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
□ Applicable Not applicable
Effects of share changes on the basic and diluted earnings per share, equity per share attributable to the Company’s ordinary
shareholders and other financial indicators of the prior year and the prior accounting period, respectively:
□ Applicable Not applicable
Other information that the Company considers necessary or is required by the securities regulator to be disclosed:
Applicable □ Not applicable
The Company received notification from Shenzhen Investment Holdings Co., Ltd. ("SIHC "), the controlling shareholder of the
Company, that due to the execution of a court judgment, 1,730,300 restricted shares of the Company held by Shenzhen Duty-Free
Commodity Enterprises Co., Ltd. had been transferred to the name of SIHC. The number of shares of the Company held by SIHC
and its concert parties increased from 339,452,527 shares (representing 56.957% of the total share capital of the Company) to
341,182,827 shares (representing 57.247% of the total share capital of the Company). For details, please refer to the
Announcement on the Change of Controlling Shareholders' Equity (No. 2024-04) disclosed by the Company on 6 March 2024 on
Cninfo.
2. Changes in Restricted Shares
□ Applicable Not applicable
II. Issuance and Listing of Securities
1. Securities (Exclusive of Preferred Shares) Issued in the Reporting Period
□ Applicable Not applicable
2. Changes to Total Shares, Shareholder Structure and Asset and Liability Structures
□ Applicable Not applicable
3. Existing Staff-Held Shares
□ Applicable Not applicable
III Shareholders and Actual Controller
1. Shareholders and Their Shareholdings at the Period-End
Unit: share
Number of
ordinary Number of
shareholder preferred Number of preferred
s at the shareholders shareholders with resumed
Number of ordinary
41,547 month-end 40,432 with 0 voting rights at the month-end 0
shareholders
prior to the resumed prior to the disclosure of this
disclosure voting rights Report (if any)
of this (if any)
Report
5% or greater shareholders or top 10 shareholders (Excluding those who lend shares through refinancing)
Nature of Restricted Unrestricted Shares, marked in pledge
Name of shareholder Shareholdi Total shares Increase/dec
shareholder shares held shares held or frozen
84
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
ng held at the rease in the
percentage period-end Reporting Status Shares
Period
State-
Shenzhen Investment owned
50.57% 301,414,637 0 3,326 301,411,311
Holdings Co., Ltd. legal
person
Domestic
Shenzhen State-
non-state-
owned Equity
owned 6.38% 38,037,890 0 0 38,037,890
Management Co.,
legal
Ltd.
person
State-
China Orient Asset
owned
Management Co., 2.77% 16,491,402 0 0 16,491,402
legal
Ltd.
person
Hong Kong Foreign
Securities Clearing legal 0.58% 3,469,347 2,496,834 0 3,469,347
Company Ltd. person
Domestic
Duan Shaoteng natural 0.30% 1,760,565 5,000 0 1,760,565
person
Domestic
Shenzhen Duty-Free non-state-
Commodity owned 0.29% 1,730,300 0 1,730,300 0
Enterprises Co., Ltd. legal
person
Domestic
Yang Yaochu natural 0.28% 1,690,984 50,000 0 1,690,984
person
Industrial and
Commercial Bank of
China Limited－
Southern China
Securities Full Index Other 0.27% 1,638,834 527,300 0 1,638,834
Real Estate Trading
Open-ended Index
Securities Investment
Fund
Domestic
Wang Zhong natural 0.27% 1,580,000 1,580,000 0 1,580,000
person
Domestic
Li Xinyi natural 0.25% 1,500,000 0 0 1,500,000
person
Strategic investor or general legal
person becoming a top-10 ordinary
N/A
shareholder due to rights issue (if
any)
The largest shareholder, Shenzhen Investment Holdings Co., Ltd., is the controlling shareholder of the
Related or acting-in-concert parties
Company and Shenzhen State-owned Equity Management Co., Ltd. And the Company does not know whether
among the shareholders above
there are related parties or acting-in-concert parties among the other shareholders.
Explain if any of the shareholders
above was involved in
entrusting/being entrusted with N/A
voting rights or waiving voting
rights
Special account for share
repurchases (if any) among the top N/A
10 shareholders
Top 10 unrestricted shareholders
85
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Shares by type
Name of shareholder Unrestricted shares held at the period-end
Type Shares
Shenzhen Investment Holdings Co., RMB common
301,411,311 301,411,311
Ltd. share
Shenzhen State-owned Equity RMB common
38,037,890 38,037,890
Management Co., Ltd. share
China Orient Asset Management RMB common
16,491,402 16,491,402
Co., Ltd. share
Hong Kong Securities Clearing RMB common
3,469,347 3,469,347
Company Ltd. share
RMB common
Duan Shaoteng 1,760,565 1,760,565
share
Domestically
Yang Yaochu 1,690,984 listed foreign 1,690,984
share
Industrial and Commercial Bank of
China Limited－Southern China RMB common
Securities Full Index Real Estate 1,638,834 1,638,834
share
Trading Open-ended Index
Securities Investment Fund
RMB common
Wang Zhong 1,580,000 1,580,000
share
RMB common
Li Xinyi 1,500,000 1,500,000
share
Domestically
Mai Furong 1,244,596 listed foreign 1,244,596
share
Related or acting-in-concert parties
among top 10 unrestricted public The largest shareholder, Shenzhen Investment Holdings Co., Ltd., is the controlling shareholder of the
shareholders, as well as between top Company and Shenzhen State-owned Equity Management Co., Ltd. And the Company does not know whether
10 unrestricted public shareholders there are related parties or acting-in-concert parties among the other shareholders.
and top 10 shareholders
Top 10 ordinary shareholders
involved in securities margin N/A
trading (if any)
Top 10 shareholders involved in refinancing business through lending shares
□ Applicable Not applicable
Change in Top 10 shareholders compared with the last period
Applicable □ Not applicable
Unit: share
Change in Top 10 shareholders compared with last period
Shares held by shareholders
through their general accounts
Shares lent for refinancing
and credit accounts and
Add/exit in and not returned yet at the
Shares lent for refinancing
Name of shareholders (full name) the Reporting period-end
and not returned yet at the
Period period-end
% of total % of total
Total amount Total amount
share capital share capital
Hong Kong Securities Clearing Company Ltd. Add 0 0.00% 3,469,347 0.58%
Industrial and Commercial Bank of China
Add 0 0.00% 1,638,834 0.27%
Limited－Southern China Securities Full
86
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Index Real Estate Trading Open-ended Index
Securities Investment Fund
Wang Zhong Add 0 0.00% 1,580,000 0.27%
Mai Furong Exit 0 0.00% 1,244,596 0.21%
CITIC Securities Company Limited Exit 0 0.00% 1,038,364 00.17%
Shenzhen Hengbang Zhaofeng Private Equity
Fund Management Co., Ltd.-Hengbang
Exit 0 0.00% 0 0.00%
Xiangshang Win-Win Growth No.1 Private
Equity Investment Fund
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the
Company conducted any promissory repo during the Reporting Period.
□ Yes No
No such cases in the Reporting Period.
2. Controlling Shareholder
Nature of the controlling shareholder: Controlled by a local state-owned legal person
Type of the controlling shareholder: legal person
Legal
Name of controlling representative/ Date of Unified social credit
Principal activity
shareholder person in establishment code
charge
To execute investments and M&A
on financial equity such as banks,
securities, insurance, funds and
guarantees and pseudo-banking
equity; to engage in the property
development and operation business
within the scale of legally acquire
the land use right; to execute
investments and services in
strategic emerging industry; to
execute the investment, operating
and management of the state-owned
Shenzhen Investment
He Jianfeng 13 October 2004 914403007675664218 equities of the wholly-owned,
Holdings Co., Ltd.
controlling and stock-participating
enterprises through the methods
such as the restructuring
integration, capital operation and
assets disposal; other business
developed with the authority from
the Municipal State-owned Assets
Supervision and Administration
Commission (if the activity needs
approval as required by state
regulations, it shall not be operated
until it is approved).
Shareholdings of the Other listed companies at home or abroad in this Reporting Period controlled by the Company’s
controlling shareholder controlling shareholder including: Shenzhen Textile A (000045), SPG A (000029), Shenzhen Universe
in other listed A (000023), Ping’an (601318), Guosen Securities (002736), Guotai Jun’an (601211), Telling
companies at home or Telecommunication (000829), International (00152), Beauty Star (002243), Bay Area Development
abroad in this (00737), Infinova (002528), Eternal Asia (002183), Shenzhen Energy (000027), Bank of
Reporting Period Communications (601328), Techand (300197), Vanke (02202), etc.
Change of the controlling shareholder in the Reporting Period:
□ Applicable Not applicable
The controlling shareholder remained the same in the Reporting Period.
87
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
3. Actual Controller and Its Acting-in-Concert Parties
Nature of the actual controller: local institution for state-owned assets management
Type of the actual controller: legal person
Legal
Name of actual representative/ Unified social
Date of establishment Principal activity
controller person in credit code
charge
(I) Implementing and practicing state,
provincial and municipal laws and
regulations related to management on
state-owned assets, drafting local
laws, regulations, and policies about
management on state-owned assets,
and organizing implementation
activities upon approvals. Intending
to draft supervision systems and
methods about operational state-
owned assets, and organizing
implementation activities.
(II) On the basis of authorization from
municipal government, fulfilling
duties of investors according to laws
and regulations, and protecting the
rights and interests of investors for
state-owned assets according to laws
(III) Taking charge of Party-building
work for enterprises in its supervision
and organs entrusted
(IV) Undertaking the supervision over
state-owned assets of municipal
enterprises, strengthening
management on state-owned assets,
further perfecting the management
Shenzhen Municipal
mechanism for state-owned assets
State-owned Assets
11440300K31728 with the unification of power,
Supervision and Wang Yongjian 1 July 2004
0672 obligation, and duties, as well as the
Administration
combination of managing assets,
Commission
people, and affairs
(V) Being responsible for hedging
and appreciation of the value of state-
owned assets of enterprises in its
supervision, establishing and
perfecting the index system for
hedging and appreciation of the value
of state-owned assets, setting out
assessment standards, supervising on
hedging and appreciation of the value
of state-owned assets of enterprises in
its supervision by statistics, audit, and
check, and urging enterprises in its
supervision to fulfill social duties
(VI) In charge of researching and
preparing the general planning for
transformation and development of
state-owned enterprise in its
supervision, guiding and boosting
transformation and re-organization of
state-owned enterprises, prompting
the construction of modern enterprise
system, carrying forward operation of
state-owned capital, pushing the
strategic adjustment on state-owned
economy layout and structure, and
88
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
making state-owned capital play the
role in significant industries and key
fields including national security,
national economy lifeline, etc.
(VII) Directing and propelling
enterprises in its supervision to
perfect company governance
structure, intensifying construction of
Board and Supervision Committees of
enterprises in its supervision, and
forming the governance mechanism
with specific duties, coordinating
operation, and effective
counterbalance
(VIII) Assuming the management
work of income distribution for
enterprises in its supervision, and
standardizing the income distribution
and position-related consumption
over people in charge of enterprises in
its supervision
(IX) In line with rules of municipal
Party committee, appointing and
dismissing, appraising, as well as, in
accordance with business
performance, rewarding and
punishing people in charge of
enterprises in its supervision by
applying legal procedures,
establishing the mechanism of
selecting and choosing candidates
meeting the requirements of socialist
market economy system and modern
enterprise system, and perfecting the
incentive and control system for
operators
(X) Being responsible for appointing
or recommending board directors,
supervisors, CFOs to enterprises in its
supervision, and auditing on
economic duties of people in charge
of enterprises in its supervision
according to rules about management
authorization to people in charge of
enterprises
(XI) In charge of preparing the draft
of budgets and final accounts of
annual state-owned capital of
enterprises in its supervision,
including it to the government budget
system, organizing the execution
upon approvals, and collecting
earnings of state-owned capital
handed in by enterprises in its
supervision
(XII) In charge of strategy research,
policy formulation, and guidance for
transformation, development, and
asset management related to
collectively-owned enterprises
(XIII) Assuming other assignments
assigned by municipal government
and superior departments
Shareholdings of the
actual controller in Listed companies such as the Shenzhen Airport, YTP, Shenzhen Energy, Shenzhen Zhenye, Shenzhen
other listed companies Tagen and SDGI.
at home or abroad in
89
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
this Reporting Period
Change of the actual controller in the Reporting Period
□ Applicable Not applicable
The actual controller remained the same in the Reporting Period.
Ownership and control relations between the actual controller and the Company:
Indicate by tick mark whether the actual controller controls the Company via trust or other ways of asset management.
□ Applicable Not applicable
4. Number of Accumulative Pledged Shares held by the Company’s Controlling Shareholder or the
Largest Shareholder as well as Its Acting-in-Concert Parties Accounts for 80% of all shares of the
Company held by Them
□ Applicable Not applicable
5. Other 10% or Greater Corporate Shareholders
□ Applicable Not applicable
6. Limitations on Shareholding Decrease by the Company’s Controlling Shareholder, Actual Controller,
Reorganizer and Other Commitment Makers
□ Applicable Not applicable
IV Specific Implementation of Share Repurchase during the Reporting Period
Progress on any share repurchase
□ Applicable Not applicable
Progress on reducing the repurchased shares by means of centralized bidding
□ Applicable Not applicable
90
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Part VIII Preference Shares
□ Applicable Not applicable
No preference shares in the Reporting Period.
91
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Part IX Bonds
□ Applicable Not applicable
92
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Part X Financial Statements
I. Auditor’s Report
Type of the independent auditor’s opinion Unmodified unqualified opinion
Date of signing this report 29 March 2024
Name of the independent auditor Baker Tilly China Certified Public Accountants (LLP)
Reference number of Audit Report Baker Tilly YZ[2024]No. 20153
Name of the certified public accountants Chen Zihan, Zhong Qinfang
Text of the Auditor’s Report
Baker Tilly YZ[2024]No. 20153
All shareholders of Shenzhen Properties & Resources Development (Group) Ltd.:
1. Opinion
We have audited the financial statements of Shenzhen Properties & Resources Development (Group) Ltd. (the “Company”), which
comprise the consolidated and parent company balance sheets as of 31 December 2023, the consolidated and parent company
statements of income, cash flows and changes in shareholders’ equity for the year then ended, as well as the notes to the financial
statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated and parent company
financial position of the Company at 31 December 2023, and the consolidated and parent company operating results and cash flows
for the year then ended, in conformity with the Chinese Accounting Standards (CAS).
2. Basis for Opinion
We conducted our audits in accordance with the Audit Standards for Chinese Registered Accountants. Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for Audit of Financial Statements section of our report. We are
independent of the Company in accordance with the China Code of Ethics for Certified Public Accountants, and we have fulfilled our
other ethical responsibilities in accordance with the said Code of Ethics. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
3. Key audit items
Key audit items are the items that are considered most important for the audit of the current financial statements based on our
professional judgment. The response to these items is based on the audit of the financial statements as a whole and the formation of
audit opinions. We do not comment on these items separately.
Key audit item Audit response
1. Recognition and measurement of revenue from real estate development and sales
93
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Key audit item Audit response
SZPRD achieved a revenue of RMB1.235 billion from real Our audit procedures for this key audit issue include:
estate development projects in 2023, accounting for Understanding and sampling key control measures related to
41.64% of the total operating revenue. SZPRD confirms property sales business to evaluate the effectiveness of
revenue from real estate development projects when all the implementation of control procedures.
following conditions are met: (1) Real estate products of Obtaining and reviewing completion acceptance documents of
sales contracts under development are completed and projects; reviewing property sales contracts and verifying the
accepted; (2) Irreversible sales contracts are signed and authenticity of revenue from property sales recognized in this
buyers’ payment certificates are received; (3) Notice of year; checking original collection certificates or certificates of
property acceptance is issued. bank mortgage procedures to determine whether full payment
The recognition and measurement of revenue from real amount is received; reviewing admission notice or other
estate business has a significant impact on the operating supporting documents on delivery of properties to evaluate
results of SZPRD, which may be inaccurately measured or whether revenue from property sales meets the conditions for
recognized in improper accounting period. Therefore, we revenue recognition as stipulated by the Company’s
regard the recognition and measurement of real estate accounting policy.
development and sales revenue as key audit issues. Obtaining and reviewing supporting documents for property
For accounting policies and details of revenue from real delivery before and after the balance sheet date to evaluate
estate development and sales, please refer to Note III, (39), whether revenue from property sales is recorded in proper
VI, (39) to the financial statement. accounting period.
2. Assessment of the net realizable value of inventory
As of 31 December 2023, the total amount of inventory,
including development costs, developed products, and land
intended for development (referred to as "inventory"), had a
carrying value of RMB11,090 million, accounting for The primary procedures we conducted for assessing the net
65.32% of the total assets. The inventory is measured at a realizable value of inventory are outlined below:
lower cost and net realizable value. (1) We will assess the design and operating effectiveness of
The management determines the net realizable value of each key internal controls related to management's preparation of
inventory item as of the balance sheet date. In the assessment budgets and forecasts for construction and other costs
of the net realizable value of inventory, the management is associated with each inventory item;
required to make the best estimates of the construction costs (2) Based on sampling, we will conduct first-hand
that will be incurred when each planned and under- observation of inventory items, inquire about the progress of
construction development product reaches completion, and these inventory projects with management, and assess the
also estimate the expected future net selling price of each total development cost budget reflected in the latest forecasts
inventory item and future selling expenses, including related for each project. We will compare the costs incurred as of 31
sales taxes. This process involves significant management December 2023, with the budget to evaluate the accuracy of
judgment and estimation. management's forecasts and the budgeting process;
Due to the significance of inventory as a key asset of the (3) The valuation methods utilized by management will be
Company, and considering the inherent risks associated with assessed, and the key estimates and assumptions used in the
estimating the construction costs that will be incurred upon valuation, including those pertaining to the average net
the completion of inventory items and the future net selling selling price, will be compared with market-available data
prices, especially in light of the various measures introduced and Shenzhen Property Group's sales budget plan; and
in response to the real estate market across different cities in (4) The work results of third-party experts will be utilized to
the current economic environment, we have identified the assess the competence and objectivity of the third-party
assessment of the net realizable value of Shenzhen Property experts, and the appropriateness and reasonableness of the
Group's inventory as a key audit matter. original data, key estimates and assumptions, key parameters,
Please refer to the notes to the financial statements "III. and valuation calculation process used by the third-party
Significant Accounting Policies and Accounting Estimates" experts will be reviewed and evaluated.
(12) The accounting policies for inventory and "VI. Notes to
Major Items of the Consolidated Financial Statements" (6)
Inventory.
4. Other Information
The Company’s management (hereinafter referred to as the Management”) is responsible for the other information. The other
94
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
information comprises all of the information included in the Company’s 2023 Annual Report other than the financial statements and
our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion
thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or
otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required
to report that fact. We have nothing to report in this regard.
5. Responsibilities of Management and Those Charged with Governance for Financial Statements
The Management is responsible for the preparation of the financial statements that give a fair view in accordance with CAS, and for
designing, implementing and maintaining such internal control as the management determines is necessary to enable the preparation
of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Management is responsible for assessing the Company’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the
Management either intends to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Those charged with governance (hereinafter referred to as the “Governance”) are responsible for overseeing the Company’s financial
reporting process.
6. Auditor’s Responsibilities for Audit of Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with CAS will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with CAS, we exercise professional judgment and maintain professional skepticism throughout the
audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by the management.
(4) Conclude on the appropriateness of the management’s use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the
Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required by CAS to draw
users’ attention in our auditor’s report to the related disclosures in the financial statements or. if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future
events or conditions may cause the Company to cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, and whether the financial statements represent
the underlying transactions and events in a manner that achieves fair presentation.
95
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the
Company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the
Company audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding the planned scope and timing of the audit and significant audit
findings, including any noteworthy deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in
the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these
matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of such communication.
Chinese CPA
(Engagement Partner):
BeijingChina
29 March 2024
Chinese CPA:
II Financial Statements
Currency unit for the financial statements and the notes thereto: RMB
1. Consolidated Balance Sheet
Prepared by Shenzhen Properties & Resources Development (Group) Ltd.
31 December 2023
Unit: RMB
Item 31 December 2023 1 January 2023
Current assets:
Monetary assets 2,748,798,476.72 1,517,528,893.83
Settlement reserve
Interbank loans granted
Held-for-trading financial assets
Derivative financial assets
96
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Notes receivable
Accounts receivable 502,806,453.88 419,933,915.30
Accounts receivable financing
Prepayments 11,983,086.35 100,341,806.56
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract reserve
Other receivables 624,394,372.82 639,903,523.33
Including: Interest receivable
Dividends receivable
Financial assets purchased under resale
agreements
Inventories 11,098,209,095.74 10,975,334,223.37
Contract assets 844,485.57 1,094,632.90
Assets held for sale
Current portion of non-current assets
Other current assets 127,774,825.51 65,655,266.27
Total current assets 15,114,810,796.59 13,719,792,261.56
Non-current assets:
Loans and advances to customers
Investments in debt obligations
Investments in other debt obligations
Long-term receivables 22,651,454.07
Long-term equity investments 84,057,750.55 79,781,437.31
Investments in other equity
636,926.20 887,838.64
instruments
Other non-current financial assets
Investment property 386,810,800.47 405,762,739.18
Fixed assets 66,436,408.90 82,745,172.12
Construction in progress
Productive living assets
Oil and gas assets
Right-of-use assets 23,516,796.22 70,168,415.65
Intangible assets 889,801.14 1,269,382.91
Development costs
Goodwill 9,446,847.38 9,446,847.38
Long-term prepaid expense 21,510,397.88 21,980,602.46
Deferred income tax assets 1,276,440,386.83 1,407,551,347.20
Other non-current assets 3,505,155.93 2,750,873.08
Total non-current assets 1,873,251,271.50 2,104,996,110.00
Total assets 16,988,062,068.09 15,824,788,371.56
Current liabilities:
Short-term borrowings 230,915,000.00
Borrowings from the central bank
Interbank loans obtained
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 662,869,059.59 608,283,388.52
Advances from customers 2,265,223.56 2,260,847.31
Contract liabilities 820,424,953.42 920,828,040.81
Financial assets sold under repurchase
agreements
97
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Customer deposits and interbank
deposits
Payables for acting trading of securities
Payables for underwriting of securities
Employee benefits payable 218,786,111.78 239,126,392.02
Taxes payable 4,026,957,347.94 3,917,278,346.81
Other payables 1,217,303,294.25 1,515,085,832.45
Including: Interest payable
Dividends payable 12,202,676.04 12,202,676.04
Handling charges and commissions
payable
Reinsurance payables
Liabilities directly associated with
assets held for sale
Current portion of non-current liabilities 3,092,324,853.07 218,858,766.82
Other current liabilities 68,373,661.13 83,991,786.83
Total current liabilities 10,340,219,504.74 7,505,713,401.57
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 1,399,889,274.47 3,618,782,344.00
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 10,571,092.27 77,963,283.55
Long-term payables 400,105,655.56
Long-term employee benefits payable
Provisions 650,000.00 766,612.52
Deferred income
Deferred income tax liabilities 5,862,279.70 22,979,304.10
Other non-current liabilities 127,039,225.54 128,008,919.79
Total non-current liabilities 1,944,117,527.54 3,848,500,463.96
Total liabilities 12,284,337,032.28 11,354,213,865.53
Owners’ equity:
Share capital 595,979,092.00 595,979,092.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 80,488,045.38 80,488,045.38
Less: Treasury stock
Other comprehensive income -3,352,337.88 -3,854,377.95
Specific reserve
Surplus reserves 116,108,727.08 48,892,576.10
General reserve
Retained earnings 3,872,586,802.17 3,692,753,832.81
Total equity attributable to owners of the
4,661,810,328.75 4,414,259,168.34
Company as the parent
Non-controlling interests 41,914,707.06 56,315,337.69
Total owners’ equity 4,703,725,035.81 4,470,574,506.03
Total liabilities and owners’ equity 16,988,062,068.09 15,824,788,371.56
Legal representative: Liu Shengxiang Head of financial affairs: Cai Lili Head of the financial department: Cai Kelin
98
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 31 December 2023 1 January 2023
Current assets:
Monetary assets 1,477,419,010.01 532,263,736.63
Held-for-trading financial assets
Derivative financial assets
Notes receivable
Accounts receivable 120,029,158.78 5,137,042.71
Accounts receivable financing
Prepayments
Other receivables 4,489,713,785.01 5,162,396,869.45
Including: Interest receivable
Dividends receivable 151,433,108.41
Inventories 50,777,366.97 793,075,051.53
Contract assets
Assets held for sale
Current portion of non-current assets
Other current assets 2,617,751.73 18,130,015.97
Total current assets 6,140,557,072.50 6,511,002,716.29
Non-current assets:
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 1,374,549,151.65 1,447,747,317.70
Investments in other equity
867,426.20 1,118,338.64
instruments
Other non-current financial assets
Investment property 253,100,089.70 260,599,477.89
Fixed assets 22,373,578.76 31,577,309.67
Construction in progress
Productive living assets
Oil and gas assets
Right-of-use assets 2,700,397.70 3,238,351.85
Intangible assets 3,887,333.33
Development costs
Goodwill
Long-term prepaid expense 380,493.32 860,115.06
Deferred income tax assets 1,961,067.37 153,811,385.39
Other non-current assets 2,853,376,650.86 2,362,376,650.86
Total non-current assets 4,513,196,188.89 4,261,328,947.06
Total assets 10,653,753,261.39 10,772,331,663.35
Current liabilities:
Short-term borrowings
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 77,667,521.25 41,228,778.20
Advances from customers 227.00 952,186.65
Contract liabilities 840,878,470.63
Employee benefits payable 57,605,546.32 56,425,731.67
Taxes payable 75,570,618.96 1,783,757.84
Other payables 7,278,131,009.11 7,258,663,180.38
Including: Interest payable
Dividends payable 29,642.40 29,642.40
99
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Liabilities directly associated with
assets held for sale
Current portion of non-current liabilities 63,605,554.05 190,431,469.82
Other current liabilities 75,679,062.35
Total current liabilities 7,552,580,476.69 8,466,042,637.54
Non-current liabilities:
Long-term borrowings 400,400,000.00 462,000,000.00
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 1,708,456.34 1,947,178.87
Long-term payables 400,105,655.56
Long-term employee benefits payable
Provisions
Deferred income
Deferred income tax liabilities 675,099.43 809,587.96
Other non-current liabilities 40,000,000.00 40,000,000.00
Total non-current liabilities 842,889,211.33 504,756,766.83
Total liabilities 8,395,469,688.02 8,970,799,404.37
Owners’ equity:
Share capital 595,979,092.00 595,979,092.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 53,876,380.11 53,876,380.11
Less: Treasury stock
Other comprehensive income -3,004,584.80 -2,742,841.65
Specific reserve
Surplus reserves 116,108,727.08 48,892,576.10
Retained earnings 1,495,323,958.98 1,105,527,052.42
Total owners’ equity 2,258,283,573.37 1,801,532,258.98
Total liabilities and owners’ equity 10,653,753,261.39 10,772,331,663.35
3. Consolidated Income Statement
Unit: RMB
Item 2023 2022
1. Revenue 2,965,117,025.04 3,708,669,046.85
Including: Operating revenue 2,965,117,025.04 3,708,669,046.85
Interest revenue
Insurance premium income
Handling charge and commission income
2. Costs and expenses 2,745,490,676.70 3,142,047,245.48
Including: Cost of sales 2,233,525,382.49 1,978,777,621.22
Interest costs
Handling charge and commission
expense
Surrenders
Net insurance claims paid
Net amount provided as insurance
contract reserve
100
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surcharges 106,650,246.82 725,920,657.80
Selling expense 46,757,158.57 53,541,997.78
Administrative expense 310,578,375.15 329,991,655.74
R&D expense 4,133,484.37 3,244,129.11
Finance costs 43,846,029.30 50,571,183.83
Including: Interest expense 55,930,898.29 64,941,564.63
Interest income 19,183,529.19 21,591,864.72
Add: Other income 15,432,192.52 19,484,058.67
Return on investment (“-” for loss) 705,759,652.36 1,981,330.90
Including: Share of profit or loss of joint
4,339,433.24 2,040,461.81
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 (“-”
117,082.19
for loss)
Credit impairment loss (“-” for loss) -19,844,952.87 -17,395,139.90
Asset impairment loss (“-” for loss) -212,173,623.03 -528,430.23
Asset disposal income (“-” for loss) 833,369.19 175,810,605.44
3. Operating profit (“-” for loss) 709,632,986.51 746,091,308.44
Add: Non-operating income 3,604,677.09 7,198,004.28
Less: Non-operating expense 6,504,504.20 2,556,893.74
4. Profit before tax (“-” for loss) 706,733,159.40 750,732,418.98
Less: Income tax expense 257,694,738.76 221,722,125.66
5. Net profit (“-” for net loss) 449,858,861.48 529,010,293.32
5.1 By operating continuity
5.1.1 Net profit from continuing
449,797,505.65 529,010,293.32
operations (“-” for net loss)
5.1.2 Net profit from discontinued
61,355.83
operations (“-” for net loss)
5.2 By ownership
5.2.1 Net profit attributable to
shareholders of the Company as the 464,014,492.11 537,291,574.13
parent
5.2.1 Net profit attributable to non-
-14,155,630.63 -8,281,280.81
controlling interests
6. Other comprehensive income, net of
502,040.07 4,320,275.71
tax
Attributable to owners of the Company
502,040.07 4,320,275.71
as the parent
6.1 Items that will not be reclassified to
-261,743.15 -168,720.11
profit or loss
6.1.1 Changes caused by remeasurements
on defined benefit schemes
101
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
6.1.2 Other comprehensive income that
will not be reclassified to profit or loss
under the equity method
6.1.3 Changes in the fair value of
-261,743.15 -168,720.11
investments in other equity instruments
6.1.4 Changes in the fair value arising
from changes in own credit risk
6.1.5 Other
6.2 Items that will be reclassified to
763,783.22 4,488,995.82
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- 763,783.22 4,488,995.82
denominated financial statements
6.2.7 Other
Attributable to non-controlling interests
7. Total comprehensive income 450,360,901.55 533,330,569.03
Attributable to owners of the Company
464,516,532.18 541,611,849.84
as the parent
Attributable to non-controlling interests -14,155,630.63 -8,281,280.81
8. Earnings per share
8.1 Basic earnings per share 0.7786 0.9015
8.2 Diluted earnings per share 0.7786 0.9015
Where business combinations under common control occurred in the Current Period, the net profit achieved by the acquirees
before the combinations was RMB0, with the amount for the same period of last year being RMB0.
Legal representative: Liu Shengxiang Head of financial affairs: Cai Lili Head of the financial department: Cai Kelin
4. Income Statement of the Company as the Parent
Unit: RMB
Item 2023 2022
1. Operating revenue 1,053,809,354.95 75,486,414.74
Less: Cost of sales 790,579,825.41 44,999,240.65
Taxes and surcharges 11,569,489.25 5,106,898.84
Selling expense 1,376,939.25 400,095.36
Administrative expense 100,710,539.92 102,699,790.62
R&D expense
Finance costs 12,752,211.70 6,565,334.70
Including: Interest costs 24,335,591.87 27,016,860.03
Interest revenue 12,114,868.86 13,235,541.77
102
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Add: Other income 252,975.99 183,849.33
Return on investment (“-” for loss) 761,774,908.45 313,407,689.63
Including: Share of profit or loss of joint
4,339,433.24 2,040,461.81
ventures and associates
Income from the derecognition of
financial assets at amortized cost (“-” for
loss)
Net gain on exposure hedges (“-”
for loss)
Gain on changes in fair value (“-”
for loss)
Credit impairment loss (“-” for loss) -3,568,827.56 280,304.06
Asset impairment loss (“-” for loss)
Asset disposal income (“-” for loss) 111,000.73
2. Operating profit (“-” for loss) 895,390,407.03 229,586,897.59
Add: Non-operating income 1,910,619.60
Less: Non-operating expense 15,573.60 23,576.47
3. Profit before tax (“-” for loss) 897,285,453.03 229,563,321.12
Less: Income tax expense 225,123,943.28 37,070,551.98
4. Net profit (“-” for net loss) 672,161,509.75 192,492,769.14
4.1 Net profit from continuing
672,161,509.75 192,492,769.14
operations (“-” for net loss)
4.2 Net profit from discontinued
operations (“-” for net loss)
5. Other comprehensive income, net of
-261,743.15 -168,720.11
tax
5.1 Items that will not be reclassified to
-261,743.15 -168,720.11
profit or loss
5.1.1 Changes caused by remeasurements
on defined benefit schemes
5.1.2 Other comprehensive income that
will not be reclassified to profit or loss
under the equity method
5.1.3 Changes in the fair value of
-261,743.15 -168,720.11
investments in other equity instruments
5.1.4 Changes in the fair value arising
from changes in own credit risk
5.1.5 Other
5.2 Items that will be reclassified to
profit or loss
5.2.1 Other comprehensive income that
will be reclassified to profit or loss under
the equity method
5.2.2 Changes in the fair value of
investments in other debt obligations
5.2.3 Other comprehensive income
arising from the reclassification of
financial assets
5.2.4 Credit impairment allowance for
investments in other debt obligations
5.2.5 Reserve for cash flow hedges
5.2.6 Differences arising from the
translation of foreign currency-
denominated financial statements
5.2.7 Other
6. Total comprehensive income 671,899,766.60 192,324,049.03
103
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
5. Consolidated Cash Flow Statement
Unit: RMB
Item 2023 2022
1. Cash flows from operating activities:
Proceeds from sale of commodities and
3,136,072,105.49 3,437,128,020.73
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 17,871,338.77 10,058,351.98
Cash generated from other operating
355,263,031.70 1,078,867,968.60
activities
Subtotal of cash generated from
3,509,206,475.96 4,526,054,341.31
operating activities
Payments for commodities and services 2,249,429,282.59 2,510,779,597.33
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 971,486,269.04 983,205,651.52
Taxes paid 280,607,594.18 688,906,681.47
Cash used in other operating activities 271,776,314.48 237,929,307.13
Subtotal of cash used in operating
3,773,299,460.29 4,420,821,237.45
activities
Net cash generated from/used in
-264,092,984.33 105,233,103.86
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 297,479.85
Return on investment 63,120.00
104
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Net proceeds from the disposal of fixed
assets, intangible assets and other long- 92,191.39 197,192,641.96
lived assets
Net proceeds from the disposal of
634,578,885.34
subsidiaries and other business units
Cash generated from other investing
activities
Subtotal of cash generated from
634,734,196.73 197,490,121.81
investing activities
Payments for the acquisition of fixed
assets, intangible assets and other long- 7,641,999.39 17,734,048.21
lived assets
Payments for investments 0.00 27,380,294.13
Net increase in pledged loans granted
Net payments for the acquisition of
0.00 0.00
subsidiaries and other business units
Cash used in other investing activities
Subtotal of cash used in investing
7,641,999.39 45,114,342.34
activities
Net cash generated from/used in
627,092,197.34 152,375,779.47
investing activities
3. Cash flows from financing activities:
Capital contributions received 0.00 17,760,000.00
Including: Capital contributions by non-
0.00 17,760,000.00
controlling interests to subsidiaries
Borrowings raised 1,084,580,254.47 285,589,674.44
Cash generated from other financing
400,000,000.00 0.00
activities
Subtotal of cash generated from
1,484,580,254.47 303,349,674.44
financing activities
Repayment of borrowings 194,193,324.00 63,300,000.00
Interest and dividends paid 402,974,331.30 593,986,146.21
Including: Dividends paid by
245,000.00 0.00
subsidiaries to non-controlling interests
Cash used in other financing activities 27,083,856.33 306,511,487.27
Subtotal of cash used in financing
624,251,511.63 963,797,633.48
activities
Net cash generated from/used in
860,328,742.84 -660,447,959.04
financing activities
4. Effect of foreign exchange rates
117,321.79 4,790,697.94
changes on cash and cash equivalents
5. Net increase in cash and cash
1,223,445,277.64 -398,048,377.77
equivalents
Add: Cash and cash equivalents,
1,509,693,857.48 1,907,742,235.25
beginning of the period
6. Cash and cash equivalents, end of the
2,733,139,135.12 1,509,693,857.48
period
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item 2023 2022
1. Cash flows from operating activities:
Proceeds from sale of commodities and
91,759,421.31 421,114,781.33
rendering of services
Tax rebates
Cash generated from other operating
1,234,735,240.99 1,762,436,455.47
activities
105
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Subtotal of cash generated from
1,326,494,662.30 2,183,551,236.80
operating activities
Payments for commodities and services 54,693,324.00 97,820,597.35
Cash paid to and for employees 52,203,282.11 65,677,185.99
Taxes paid 52,237,252.64 34,805,390.11
Cash used in other operating activities 694,228,351.07 1,082,444,909.69
Subtotal of cash used in operating
853,362,209.82 1,280,748,083.14
activities
Net cash generated from/used in
473,132,452.48 902,803,153.66
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 835,000,000.00 1,841,000,000.00
Return on investment 151,496,228.41 473,625,777.76
Net proceeds from the disposal of fixed
assets, intangible assets and other long- 209.00
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
986,496,228.41 2,314,625,986.76
activities
Payments for the acquisition of fixed
assets, intangible assets and other long- 697,768.98 1,154,885.13
lived assets
Payments for investments 491,000,000.00 3,124,506,071.91
Net payments for the acquisition of
subsidiaries and other business units
Cash used in other investing activities
Subtotal of cash used in investing
491,697,768.98 3,125,660,957.04
activities
Net cash generated from/used in
494,798,459.43 -811,034,970.28
investing activities
3. Cash flows from financing activities:
Capital contributions received
Borrowings raised 125,000,000.00
Cash generated from other financing
400,000,000.00
activities
Subtotal of cash generated from
400,000,000.00 125,000,000.00
financing activities
Repayment of borrowings 188,100,000.00 63,100,000.00
Interest and dividends paid 239,765,330.40 432,215,867.55
Cash used in other financing activities 1,603,790.70
Subtotal of cash used in financing
427,865,330.40 496,919,658.25
activities
Net cash generated from/used in
-27,865,330.40 -371,919,658.25
financing activities
4. Effect of foreign exchange rates
-697,037.83 12,768.24
changes on cash and cash equivalents
5. Net increase in cash and cash
939,368,543.68 -280,138,706.63
equivalents
Add: Cash and cash equivalents,
528,272,695.05 808,411,401.68
beginning of the period
6. Cash and cash equivalents, end of the
1,467,641,238.73 528,272,695.05
period
106
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
7. Consolidated Statements of Changes in Owners’ Equity
2023
Unit: RMB
2023
Equity attributable to owners of the Company as the parent
Other equity Othe Non-
instruments r Total
contr
Item Shar Capi Less: com Spec Surp Gene Retai own
ollin
e Prefe Perp tal Trea preh ific lus ral ned Othe Subt ers’
g
capit rred etual Othe reser sury ensiv reser reser reser earni r otal equit
inter
al share bond r ves stock e ve ves ve ngs y
ests
s s inco
me
1.
Bala
nce
as at 595, 80,4 - 48,8 3,69 4,41 56,3 4,47
the 979, 88,0 3,85 92,5 2,75 4,25 15,3 0,57
end 092. 45.3 4,37 76.1 3,83 9,16 37.6 4,50
of 00 8 7.95 0 2.81 8.34 9 6.03
the
prior
year
Add:
Adju
stme
nt
for
chan
ge in
acco
untin
g
polic
y
Adju
stme
nt
for
corre
ction
of
previ
ous
error
Othe
r
adjus
tmen
ts
2.
Bala
nce
as at 595, 80,4 - 48,8 3,69 4,41 56,3 4,47
the 979, 88,0 3,85 92,5 2,75 4,25 15,3 0,57
begi 092. 45.3 4,37 76.1 3,83 9,16 37.6 4,50
nnin 00 8 7.95 0 2.81 8.34 9 6.03
g of
the
year
3. 502, 67,2 179, 247, - 233,
107
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Incre 040. 16,1 832, 551, 14,4 150,
ase/ 07 50.9 969. 160. 00,6 529.
decr
8 36 41 30.6 78
ease
in 3
the
perio
d (“-
” for
decr
ease)
3.1
Total -
com 464, 464, 450,
502, 14,1
preh 014, 516, 360,
040. 55,6
ensiv 492. 532. 901.
e 07 30.6
11 18 55
inco 3
me
3.2
Capi
tal
incre
ased
and
redu
ced
by
own
ers
3.2.1
Ordi
nary
share
s
incre
ased
by
own
ers
3.2.2
Capi
tal
incre
ased
by
hold
ers
of
other
equit
y
instr
ume
nts
3.2.3
Shar
e-
base
d
pay
ment
s
inclu
ded
in
108
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
own
ers’
equit
y
3.2.4
Othe
r
3.3 - - -
Profi 67,2 -
282, 215, 215,
t 16,1 245,
364, 148, 393,
distri 50.9 000.
butio 603. 452. 452.
8 00
n 19 21 21
3.3.1
Appr -
opria 67,2
67,2
tion 16,1
16,1
to 50.9
surpl 50.9
8
us 8
reser
ves
3.3.2
Appr
opria
tion
to
gene
ral
reser
ve
3.3.3
Appr
opria - - -
tion -
215, 215, 215,
to 245,
148, 148, 393,
own 000.
ers 452. 452. 452.
00
(or 21 21 21
share
hold
ers)
3.3.4
Othe
r
3.4
Tran
sfers
withi
n
own
ers’
equit
y
3.4.1
Incre
ase
in
capit
al (or
share
109
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
capit
al)
from
capit
al
reser
ves
3.4.2
Incre
ase
in
capit
al (or
share
capit
al)
from
surpl
us
reser
ves
3.4.3
Loss
offse
t by
surpl
us
reser
ves
3.4.4
Chan
ges
in
defin
ed
bene
fit
sche
mes
trans
ferre
d to
retai
ned
earni
ngs
3.4.5
Othe
r
com
preh
ensiv
e
inco
me
trans
ferre
d to
retai
ned
earni
ngs
110
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
3.4.6
Othe
r
3.5
Spec
ific
reser
ve
3.5.1
Incre
ase
in
the
perio
d
3.5.2
Used
in
the
perio
d
- - -
3.6
1,81 1,81 1,81
Othe
r 6,91 6,91 6,91
9.56 9.56 9.56
4.
Bala
nce
as at 595, 80,4 - 116, 3,87 4,66 41,9 4,70
the 979, 88,0 3,35 108, 2,58 1,81 14,7 3,72
end 092. 45.3 2,33 727. 6,80 0,32 07.0 5,03
of 00 8 7.88 08 2.17 8.75 6 5.81
the
perio
d
2022
Unit: RMB
2022
Equity attributable to owners of the Company as the parent
Other equity Othe Non-
instruments r Total
contr
Item Shar Capi Less: com Spec Surp Gene Retai own
ollin
e Prefe Perp tal Trea preh ific lus ral ned Othe Subt ers’
g
capit rred etual Othe reser sury ensiv reser reser reser earni r otal equit
inter
al share bond r ves stock e ve ves ve ngs y
ests
s s inco
me
1.
Bala
nce
as at 595, 80,4 - 29,6 3,78 4,48 44,9 4,53
the 979, 88,0 8,17 37,5 8,18 6,11 79,6 1,09
end 092. 45.3 4,65 48.4 0,75 0,79 74.1 0,46
of 00 8 3.66 7 8.20 0.39 9 4.58
the
prior
year
Add: 2,07 2,07 17,0 2,09
Adju 5,75
0,99 6,74 05.3 3,75
stme 0.71
nt 4.22 4.93 1 0.24
111
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
for
chan
ge in
acco
untin
g
polic
y
Adju
stme
nt
for
corre
ction
of
previ
ous
error
Othe 73,8 17,9 12,1 103, 105,
1,83
r 54,3 37,3 49,5 941, 781,
9,93
adjus 03.6 91.7 72.0 267. 206.
tmen 9.00
2 1 3 36 36
ts
2.
Bala
nce
as at 595, 154, - 47,5 3,80 4,59 46,8 4,63
the 979, 342, 8,17 80,6 2,40 2,12 36,6 8,96
begi 092. 349. 4,65 90.8 1,32 8,80 18.5 5,42
nnin 00 00 3.66 9 4.45 2.68 0 1.18
g of
the
year
3.
Incre
ase/
decr - - - -
ease 73,8 4,32 1,31 109, 177, 9,47 168,
in
54,3 0,27 1,88 647, 869, 8,71 390,
the
perio 03.6 5.71 5.21 491. 634. 9.19 915.
d (“- 2 64 34 15
” for
decr
ease)
3.1
Total
com 537, 541, - 533,
4,32
preh 291, 611, 8,28 330,
0,27
ensiv 574. 849. 1,28 569.
e 5.71
13 84 0.81 03
inco
me
3.2
Capi
tal
incre - - - - -
17,7
ased 73,8 17,9 222, 314, 296,
60,0
and 54,3 37,3 424, 215, 455,
redu 00.0
03.6 91.7 006. 701. 701.
ced 0
2 1 29 62 62
by
own
ers
112
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
3.2.1
Ordi
nary
share 17,7 17,7
s 60,0 60,0
incre 00.0 00.0
ased 0 0
by
own
ers
3.2.2
Capi
tal
incre
ased
by
hold
ers
of
other
equit
y
instr
ume
nts
3.2.3
Shar
e-
base
d
pay
ment
s
inclu
ded
in
own
ers’
equit
y
- - - - -
3.2.4 73,8 17,9 222, 314, 314,
Othe 54,3 37,3 424, 215, 215,
r 03.6 91.7 006. 701. 701.
2 1 29 62 62
3.3 - - -
Profi 19,2
424, 405, 405,
t 49,0
514, 265, 265,
distri 57.3
butio 839. 782. 782.
4
n 90 56 56
3.3.1
Appr -
opria 19,2
19,2
tion 49,0
49,0
to 57.3
surpl 57.3
4
us 4
reser
ves
3.3.2
Appr
opria
tion
113
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
to
gene
ral
reser
ve
3.3.3
Appr
opria - - -
tion 405, 405, 405,
to
265, 265, 265,
own
ers 782. 782. 782.
(or 56 56 56
share
hold
ers)
3.3.4
Othe
r
3.4
Tran
sfers
withi
n
own
ers’
equit
y
3.4.1
Incre
ase
in
capit
al (or
share
capit
al)
from
capit
al
reser
ves
3.4.2
Incre
ase
in
capit
al (or
share
capit
al)
from
surpl
us
reser
ves
3.4.3
Loss
offse
t by
surpl
114
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
us
reser
ves
3.4.4
Chan
ges
in
defin
ed
bene
fit
sche
mes
trans
ferre
d to
retai
ned
earni
ngs
3.4.5
Othe
r
com
preh
ensiv
e
inco
me
trans
ferre
d to
retai
ned
earni
ngs
3.4.6
Othe
r
3.5
Spec
ific
reser
ve
3.5.1
Incre
ase
in
the
perio
d
3.5.2
Used
in
the
perio
d
3.6
Othe
r
4. 595, 80,4 - 48,8 3,69 4,41 56,3 4,47
115
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Bala 979, 88,0 3,85 92,5 2,75 4,25 15,3 0,57
nce 092. 45.3 4,37 76.1 3,83 9,16 37.6 4,50
as at
00 8 7.95 0 2.81 8.34 9 6.03
the
end
of
the
perio
d
8. Statements of Changes in Owners’ Equity of the Company as the Parent
2023
Unit: RMB
2023
Other equity instruments Other
Less: compr Surplu Retain Total
Item Capital Specifi
Share Preferr Perpet Treasu ehensi s ed owners
reserve c Other
capital ed ual Other ry ve reserve earnin ’
s reserve
shares bonds stock incom s gs equity
e
1.
Balanc
e as at 595,97 53,876 - 48,892 1,105, 1,801,
the end 9,092. ,380.1 2,742, ,576.1 527,05 532,25
of the 00 1 841.65 0 2.42 8.98
prior
year
Add:
Adjust
ment
for
change
in
accoun
ting
policy
Adjust
ment
for
correct
ion of
previo
us
error
Other
adjust
ments
2.
Balanc
e as at 595,97 53,876 - 48,892 1,105, 1,801,
the
9,092. ,380.1 2,742, ,576.1 527,05 532,25
beginn
ing of 00 1 841.65 0 2.42 8.98
the
year
3.
Increas - 67,216 389,79 456,75
e/
261,74 ,150.9 6,906. 1,314.
decrea
se in 3.15 8 56 39
the
116
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
period
(“-”
for
decrea
se)
3.1
Total
compr - 672,16 671,89
ehensi 261,74 1,509. 9,766.
ve 3.15 75 60
incom
e
3.2
Capital
increas
ed and
reduce
d by
owners
3.2.1
Ordina
ry
shares
increas
ed by
owners
3.2.2
Capital
increas
ed by
holder
s of
other
equity
instru
ments
3.2.3
Share-
based
payme
nts
includ
ed in
owners
’
equity
3.2.4
Other
3.3 - -
67,216
Profit 282,36 215,14
,150.9
distrib 4,603. 8,452.
ution 8
19 21
3.3.1
Appro -
67,216
priatio 67,216
,150.9
n to ,150.9
surplus 8
8
reserve
s
3.3.2 - -
Appro 215,14 215,14
priatio 8,452. 8,452.
n to 21 21
owners
117
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
(or
shareh
olders)
3.3.3
Other
3.4
Transf
ers
within
owners
’
equity
3.4.1
Increas
e in
capital
(or
share
capital
) from
capital
reserve
s
3.4.2
Increas
e in
capital
(or
share
capital
) from
surplus
reserve
s
3.4.3
Loss
offset
by
surplus
reserve
s
3.4.4
Chang
es in
define
d
benefit
schem
es
transfe
rred to
retaine
d
earnin
gs
3.4.5
Other
compr
ehensi
ve
118
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
incom
e
transfe
rred to
retaine
d
earnin
gs
3.4.6
Other
3.5
Specifi
c
reserve
3.5.1
Increas
e in
the
period
3.5.2
Used
in the
period
3.6
Other
4.
Balanc 595,97 53,876 - 116,10 1,495, 2,258,
e as at
9,092. ,380.1 3,004, 8,727. 323,95 283,57
the end
of the 00 1 584.80 08 8.98 3.37
period
2022
Unit: RMB
2022
Other equity instruments Other
Less: compr Surplu Retain Total
Item Capital Specifi
Share Preferr Perpet Treasu ehensi s ed owners
reserve c Other
capital ed ual Other ry ve reserve earnin ’
s reserve
shares bonds stock incom s gs equity
e
1.
Balanc
e as at 595,97 53,876 - 29,637 1,337, 2,014,
the end 9,092. ,380.1 2,574, ,548.4 497,58 416,48
of the 00 1 121.54 7 6.41 5.45
prior
year
Add:
Adjust
ment
for
5,750. 51,756 57,507
change
in 71 .35 .06
accoun
ting
policy
Adjust
ment
for
correct
119
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
ion of
previo
us
error
Other
adjust
ments
2.
Balanc
e as at 595,97 53,876 - 29,643 1,337, 2,014,
the
9,092. ,380.1 2,574, ,299.1 549,34 473,99
beginn
ing of 00 1 121.54 8 2.76 2.51
the
year
3.
Increas
e/
decrea - -
se in - 19,249
232,02 212,94
the 168,72 ,276.9
period 2,290. 1,733.
0.11 2
(“-” 34 53
for
decrea
se)
3.1
Total
compr - 192,49 192,32
ehensi 168,72 2,769. 4,049.
ve 0.11 14 03
incom
e
3.2
Capital
increas
ed and
reduce
d by
owners
3.2.1
Ordina
ry
shares
increas
ed by
owners
3.2.2
Capital
increas
ed by
holder
s of
other
equity
instru
ments
3.2.3
Share-
based
payme
nts
includ
ed in
owners
’
120
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
equity
3.2.4
Other
3.3 - -
19,249
Profit 424,51 405,26
,276.9
distrib 5,059. 5,782.
ution 2
48 56
3.3.1
Appro -
19,249
priatio 19,249
,276.9
n to ,276.9
surplus 2
2
reserve
s
3.3.2
Appro - -
priatio
405,26 405,26
n to
owners 5,782. 5,782.
(or 56 56
shareh
olders)
3.3.3
Other
3.4
Transf
ers
within
owners
’
equity
3.4.1
Increas
e in
capital
(or
share
capital
) from
capital
reserve
s
3.4.2
Increas
e in
capital
(or
share
capital
) from
surplus
reserve
s
3.4.3
Loss
offset
by
surplus
reserve
s
121
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
3.4.4
Chang
es in
define
d
benefit
schem
es
transfe
rred to
retaine
d
earnin
gs
3.4.5
Other
compr
ehensi
ve
incom
e
transfe
rred to
retaine
d
earnin
gs
3.4.6
Other
3.5
Specifi
c
reserve
3.5.1
Increas
e in
the
period
3.5.2
Used
in the
period
3.6
Other
4.
Balanc 595,97 53,876 - 48,892 1,105, 1,801,
e as at
9,092. ,380.1 2,742, ,576.1 527,05 532,25
the end
of the 00 1 841.65 0 2.42 8.98
period
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
122
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
RMB595,979,092 with the total shares of 595,979,092 (RMB1 face value per share), among which, restricted public shares:
1,898,306 A shares and 0 B shares; unrestricted public shares: 526,475,543 A shares and 67,605,243 B shares. The stock of the
Company has been listed on the Shenzhen Stock Exchange on 30 March 1992.
The Company is in the real estate sector. Its main business includes development of real estate and sale of commercial housing,
construction and management of buildings, house rent, supervision of construction, domestic trading and materials supply and
marketing (excluding exclusive dealing and monopoly sold products and commodities under special control to purchase). Main
products or services rendered mainly include the development and sales of commercial residential housing; property management;
buildings and the building devices maintenance, garden afforest and cleaning service; property leasing; supervise and management of
the engineering; retails of the Chinese food, Western-style food and wines, and etc.
The financial statements were approved and authorized for issue by the 25th Meeting of the 10th Board of Directors of the Company
on 29 March 2024.
The consolidation scope of the Company’s consolidated financial statements was determined based on the control which included the
financial statements of the Company and all its subsidiaries. A subsidiary refers to an enterprise or entity controlled by the Company.
There were 60 subsidiaries included in the consolidation financial statements in this report. Please refer to the Note IX and Note X 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:
The Company has formulated specific accounting policies and accounting estimates for transactions and events, such as the
recognition of incomes, based on the actual production and operation characteristics, and in accordance with the provisions of the
relevant accounting standards for business enterprises. Please refer to "Financial Instruments", "Inventory", and "Revenue" in this
section for details.
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
123
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Revision) and the Notice on Related Matters of the Implementation of New Accounting Standards for Business Enterprises by Listed
Companies (KJBH [2018] No. 453).
2. Fiscal Period
The fiscal year of the Company is a solar calendar year, which is from 1 January to 31 December.
3. Operating Cycle
Except for the real estate industry, other businesses run by the Company have relatively short operating cycles according to the
classification standard of 12-month’s liquidity of assets and liabilities. The operating cycle of the real estate industry shall be
generally more than 12 months from real estate development to cash the sales. The specific cycle shall be determined by the
development project and classified by the assets and liabilities liquidity.
4. Standard Currency of Accounts
The Company adopts Renminbi as a standard currency of accounts.
5. Methods for Determining materiality standards and selection criteria
Applicable □ Not applicable
Item Materiality criteria
Account receivable with bad debt provision by major single
Accounts receivable amounting to RMB5 million or more
item
Non-wholly-owned subsidiaries with revenue exceeding 10%
Significant non-wholly-owned subsidiaries of the consolidated operating revenue, or total assets exceeding
5% of the consolidated total assets.
6. 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
124
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
under the equity method, the equity is remeasured at the fair value on the purchase date, and the difference between the fair value and
its carrying value is included in the investment income of the current period; if the equity in the acquiree held prior to the purchase
date involves other comprehensive income or changes in other owners' equity under the equity method of accounting, it is converted
into income for the current period on the purchase date, except for other comprehensive income arising from the re-measurement of
the investee's net liabilities of the defined benefit pension plan or changes in net assets of the defined benefit plan and changes in the
fair value of investments in other equity instruments held.
(2) Determining the goodwill (or the amount included in the profit or loss for the current period) When comparing the initial
investment cost of long-term equity investments adjusted in the first step with the share of the fair value of the identifiable net assets
of the subsidiary on the purchase date, if the former is more than the latter, the difference between the former and the latter is
recognized as goodwill; if the former is less than the latter, the difference is included in profit or loss for the current period.
Step-by-step disposal of equity through multiple transactions that results in loss of control over the subsidiary
(1) Principles for determining whether transactions in the process of step-by-step disposal of equity that results in the loss of control
over a subsidiary constitute a "package deal"
The multiple transactions are generally regarded as a "package deal" in accounting treatment if the clauses, conditions, and economic
impacts of various transactions fall under one or more of the following circumstances:
1) These transactions are reached concurrently or after the impact thereof on each other is taken into consideration.
2) These transactions may achieve a complete business result only as a whole.
3) The occurrence of a transaction depends on the occurrence of, at a minimum, one another transaction.
4) A transaction is considered uneconomical separately but is considered economical when other transactions are also taken into
consideration.
(2) Accounting treatment when transactions in the process of step-by-step disposal of equity that results in the loss of control over a
subsidiary constitute a "package deal"
If the transactions in the disposal of equity of a subsidiary that results in the loss of control constitute a package deal, each transaction
should be accounted for as a transaction that disposes of and loses control over a subsidiary; however, the difference between the
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.
125
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
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.
7. Criteria for Judging Control and Methods for Preparing Consolidated Financial Statements
The scope of the Company's consolidated financial statements is determined based on control.
Control means that the Company has power over the investee, enjoys variable returns through its involvement in the investee's
related activities and has the ability to use the power to influence the amount of returns. Relevant activities refer to activities which
have significant impact on the returns of the investee. The activities of the investee shall be assessed based on specific circumstances,
typically including sales and purchases of goods or services, management of financial assets, acquisition and disposal of assets,
research and development activities, and financing activities.
The Company will judge whether these entities have been controlled by the investee based on its comprehensive consideration of
relevant facts and circumstances. Where changes in relevant facts and circumstances result in changes of relevant elements involved
in the above definition of control, the Company shall conduct reassessment.
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.
8. Classification of Joint arrangements and Accounting Treatment of Joint Operations
1. Identification and classification of joint arrangements
A joint arrangement is an arrangement over which two or more parties have joint control. A joint arrangement has the following
characteristics: (1) Each participant is bound by the arrangement; (2) two or more parties of the joint arrangement exercise joint
control over the arrangement. No one party can control the arrangement alone, and any party with joint control over the arrangement
can prevent the other party or combination of parties from controlling the arrangement alone.
Joint control refers to the common control over a particular arrangement according to relevant agreement, and that the decisions on
relevant activities under such arrangement are subject to unanimous consent from the parties sharing the joint control.
Joint arrangements are divided into joint operations and joint ventures. A joint operation is a joint arrangement whereby the party to
joint arrangement has rights to the assets, and obligations for the liabilities related to the arrangement. A joint venture is a joint
arrangement whereby the party to joint arrangement has rights to the net assets of the arrangement.
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)
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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.
9. 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.
10. Foreign Currency Businesses and Translation of Foreign Currency Financial Statements
(1) Accounting treatments for translation of foreign currency business
As for a foreign currency transaction in its initial recognition, the amount in the foreign currency shall be translated into the amount
in the Renminbi at the spot exchange rate of the transaction date. On balance sheet date, the foreign currency monetary items shall be
translated as the spot exchange rate on the balance sheet date, the balance occurred thereof shall be recorded into the profits and
losses at the current period except that the balance of exchange arising from the principal and interests of foreign currency
borrowings for the purchase and construction or production of assets eligible for capitalization. The foreign currency non-monetary
items measured at the historical cost shall still be translated at the spot exchange rate on the transaction date, of which the amount of
functional currency shall not be changed. The foreign currency non-monetary items measured at the fair value shall be translated at
the spot exchange rate on the confirming date of fair value, of which the balance of exchange shall be included into the profit and
loss of the current period or other comprehensive income.
(2) Translation of foreign currency financial statements
The asset and liability items in the balance sheets shall be translated at a spot exchange rate on the balance sheet date. Among the
owner’s equity items, except for the items as “retained earnings”, other items shall be translated at the spot exchange rate at the time
when they are incurred. The income and expense items in the income statements shall be translated at the spot exchange rate at the
time when they are incurred. The difference from translation of foreign currency financial statements thereof shall be recognized as
comprehensive income.
11. 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
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substantially all the risks and rewards of its ownership of the financial assets are neither transferred nor retained.
2. Classification and measurement of financial assets
At initial recognition, according to the business model of managing financial assets and the contractual cash flow characteristics of
financial assets, financial assets of the Group are classified into the following categories: Financial assets measured at the amortized
cost, financial assets measured at fair value through other comprehensive income of the current period, and financial assets measured
at fair value through profit and loss for the current period. The subsequent measurement of financial assets depended on their
categories.
The Group's classification of financial assets is based on the Group's business model for managing financial assets and the cash flow
characteristics of the financial assets.
(1) Financial assets measured at amortized cost
Financial assets that meet both of the following conditions shall be classified as financial assets measured at amortized cost: The
Group's business model of managing the financial assets aims at obtaining contractual cash flows; and, as stipulated by contract
clauses of the financial assets, the cash flows generated on a specific date are merely for the payment of principal or interest from the
unpaid principal. Such financial assets are subsequently measured at amortized cost using the effective interest method. Gain or loss
arising from derecognition or amortization using the effective interest method is included in profit and loss for the current period.
(2) Debt instrument investment measured at fair value through other comprehensive income
Financial assets that meet all the following conditions shall be classified as financial assets measured at fair value through other
comprehensive income: The Group's business model of managing the financial assets aims at obtaining contractual cash flows as well
as selling financial assets; and, as stipulated by contract clauses of the financial assets, the cash flows generated on a specific date are
merely for the payment of principal or interest from the unpaid principal. Such financial assets shall be subsequently measured at fair
value. The discount or premium is amortized using the effective interest method and recognized as interest income or expense.
Except for impairment losses or gains and exchange differences that are recognized as profit and loss for the current period, changes
in the fair value of such financial assets shall be recognized as other comprehensive income, until the financial assets are
derecognized when accumulative gains or losses shall be transferred to profit and loss for the current period. Interest income related
to such financial assets is included in profit or loss for the current period.
(3) Equity instrument investment measured at fair value through other comprehensive income
For financial assets measured at fair value through other comprehensive income that are irrevocably chosen and designated by the
Group from some non-trading equity instruments, the relevant dividend income shall be included in profit and loss for the current
period and changes in the fair value shall be recognized as other comprehensive income, until the financial assets are derecognized
when accumulative gains or losses shall be transferred to retained earnings.
(4) Financial assets measured at fair value through profit and loss for the current period
The aforementioned financial assets measured at amortized cost and financial assets other than those measured at fair value through
other comprehensive income are classified as financial assets measured at fair value through profit and loss for the current period. At
initial recognition, in order to eliminate or significantly reduce accounting mismatch, financial assets can be designated as financial
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
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profit and loss for the current period. For other types of financial assets, related transaction costs are included in their initial
recognized amounts.
3. Classification and measurement of financial liabilities
At initial recognition, the financial liabilities of the Group are classified into the following categories: Financial liabilities measured
at the amortized cost, and financial liabilities measured at fair value through profit and loss for the current period.
Financial liabilities can be designated as financial liabilities measured at fair value through profit or loss for the current period at
initial measurement if one of the following conditions is met: (1) The designation can eliminate or significantly reduce accounting
mismatch; (2) the management and performance evaluation of a portfolio of financial liabilities or a portfolio of financial assets and
financial liabilities are based on fair value in accordance with the Group's risk management or investment strategy as set out in a
formal written document, and are reported to key management personnel on this basis within the Group; (3) The financial liabilities
contain embedded derivatives require splitting.
The Group determines the classification of financial liabilities at initial recognition. For financial liabilities measured at fair value
through profit and loss for the current period, transaction costs are directly included in profit and loss for the current period. For other
types of financial liabilities, related transaction costs are included in their initial recognized amounts.
The subsequent measurement of financial liabilities depended on their categories:
(1) Financial liabilities measured at amortized cost
Such financial liabilities shall be subsequently measured at amortized cost using the effective interest method.
(2) Financial liabilities measured at fair value through profit and loss for the current period
Financial liabilities measured at fair value through profit or loss for the current period include trading financial liabilities (including
derivatives that are financial liabilities) and financial liabilities designated as at fair value through profit or loss at initial recognition.
4. Financial instrument offset
The net amount after financial assets and financial liabilities offset each other is reported in the balance sheet if both of the following
conditions are met: The Group had a currently enforceable legal right to offset the recognized amounts; the Group planned to settle
them on a net basis or to realize the financial assets and pay off the financial liabilities simultaneously.
5. Impairment of financial instrument
(1) Impairment measurement and accounting handling of financial instrument
Based on expected credit loss, the Company conducts impairment handling and confirms loss reserve for financial assets which is
measured by amortized cost, debt instrument investment which is measured by fair value and whose change is calculated into other
comprehensive profits, accounts receivable of rental, loan commitment which is beyond financial debt classified as the one which is
measured by fair value and whose change is calculated into current profits and losses, financial debt which does not belong to the one
which is measured by fair value and whose change is calculated into current profits or losses, or financial guarantee contract of
financial debt which is formed when it does not belong to financial asset transfer and doesn’t conform to confirmation condition of
termination or keeps on being involved in transferred financial asset.
Expected credit loss refers to weighted average of credit loss of financial instrument which takes the risk of contract breach
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.
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As for accounts receivable which don’t include major financing contents or the Company does not consider financing contents in
contract which is less than one year, the Company applies simplified measurement method, and measures loss reserve according to
amount of expected credit loss within the whole duration.
As for account receivable of rental and accounts receivable including major financing contents, the Company applies simplified
measurement method, and measure loss reserve according to amount of expected credit loss within the whole duration.
As for financial asset beyond above mentioned measurement methods, the Company evaluates whether its credit risk has increased
obviously since the initial confirmation on each balance sheet date. In case credit risk has increased obviously, the Company
measures the loss reserve according to amount of expected credit loss within the whole duration; in case the credit risk does not
increase obviously, the Company measures loss reserve according to the amount of expected credit loss in next 12 months.
By utilizing obtainable rational and well grounded information, including forward-looking information, comparing the risk of
contract breach on balance sheet date and risk of contract breach on initial confirmation date, the Company confirms whether the
credit risk of financial instrument has increased obviously from initial confirmation.
On balance sheet date, in case the Company judges that the financial instrument just has relatively low credit risk, then it will be
assumed that credit risk of the financial instrument has not increased obviously.
Based on single financial instrument or financial portfolio, the Company evaluates expected credit risk and measures expected credit
loss. When based on financial instrument portfolio, the Company takes common risk characteristics as the basis, and divides financial
instruments into different portfolios.
The Company measures expected credit loss again on each balance sheet date, the increase of loss reserve or amount which is
transfer back generated by it is calculated into current profits and losses as impairment profits or losses. As for financial asset which
is measured by amortized cost, loss reserve offsets the carrying value of the financial asset listed in the balance sheet; as for debt
investment which is measured by fair value and whose change is calculated into other comprehensive profits, the Company confirms
its loss reserve in other comprehensive profits and does not offset the carrying value of the financial asset.
(2) Financial instruments assessing expected credit risk by groups and measuring expected credit losses
Item Recognition basis Method of measuring expected credit losses
Other receivables-intercourse funds among Accounts nature Consulting historical experience in credit losses,
related party group within the consolidation combining actual situation and prediction for future
scope economic situation, the group’s expected credit loss
Other receivables-interest receivable group rate shall be accounted through exposure at default
and the expected credit loss rate within the next 12
Other receivables-other intercourse funds months or the entire life
among other 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
Trade acceptance bills receivable economic situation, the group’s expected credit loss
rate shall be accounted through exposure at default
and the expected credit loss rate within the entire life
Accounts receivable-Government portfolios Account nature No provision for bad debts is made during the credit
period unless there is conclusive evidence of
impairment and the risk of default is low.
Accounts receivable-other intercourse funds Account nature Consulting historical experience in credit losses,
among other related party group combining actual situation and prediction for future
economic situation, the group’s expected credit loss
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rate shall be accounted through exposure at default
and the expected credit loss rate within the entire life
Accounts receivable-credit risk characteristics Aging group Prepare the comparative list between aging of
group accounts receivable and expected credit loss rate
over the entire life by consulting historical
experience in credit losses, combining actual
situation and prediction for future economic
situation
② Accounts receivable-the comparative list between aging of common customer group and expected credit loss rate over the entire
life
Aging Expected credit loss rate of accounts receivable (%)
Within 1 year (inclusive, the same below) 3.00
1 to 2 years 10.00
2 to 3 years 30.00
3 to 4 years 50.00
4 to 5 years 80.00
Over 5 years 100.00
6. Financial asset transfer
Financial assets are derecognized if the Group has transferred almost all the risks and rewards of its ownership transferred to the
transferor; financial assets are not derecognized if the Group has retained almost all the risks and rewards of its ownership.
If the Group has neither transferred nor retained almost all the risks and rewards of its ownership of the transferred financial assets, it
will be treated respectively according to the following circumstances: If the control over the financial assets is waived, relevant
financial assets shall be derecognized, and the assets and liabilities arising from them shall be recognized; if the control over the
financial assets is not waived, relevant financial assets shall be recognized based on the extent of continuing involvement with
transferred financial assets, and related liabilities shall be recognized accordingly.
If continuing involvement is provided by way of financial guarantee for the transferred financial assets, the assets resulting from the
continuing involvement are recognized at the lower of the carrying value of the financial assets and the financial guarantee amount.
The financial guarantee amount refers to the maximum amount of the consideration received that will be required to be repaid.
12. Notes Receivable
Refer to Note V 11 Financial Instruments of the financial statements for details.
13. Accounts Receivable
Refer to Note V 11 Financial Instruments of the financial statements for details.
14. Accounts Receivable Financing
Not applicable.
15. Other Receivables
Refer to Note V 11 Financial Instruments of the financial statements for details.
16. Contract Assets
1. Methods and criteria for recognizing 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. Method of determining and accounting for expected credit losses on contract assets
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The Company applies a simplified model for expected credit losses to contract assets as prescribed by Accounting Standard for
Business Enterprises No. 14 – Revenues, excluding significant financing components (including cases where financing components
within contracts not exceeding one year are disregarded under the standard), measuring the loss provision according 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 the amount of expected credit loss of the
entire duration.
17. Inventory
(1) Inventories Classification
Inventories include development land held for sale or consumption in the process of development and operation, development
products, temporarily leased development products which intended for sale, relocation housing, stock materials, inventory equipment,
and low-value consumables, etc., as well as development costs in the process of development.
(2) Cost Flow Assumption
1) Send-out materials shall adopt the moving weighted average method.
2) During the development of the project, the development land shall be included in the development cost of the project by the floor
area apportion of the developed products.
3) Send-out developed products shall be accounted by specific identification method.
4) The temporarily leased development products which intended for sale and relocation housing shall be amortized averagely by
stages according to the expected useful life of the same kind of fixed assets of the Company.
5) If the public supporting facilities are completed earlier than the relevant development products, after the final account of the public
supporting facilities， it shall be account into the development cost of the relevant development projects according to the building
area; If the public supporting facilities are completed later than the relevant development products, the relevant development products
shall withhold the public supporting facilities fees, and adjust the relevant development product costs according to the difference
between the actual occurrence and the withhold amount after the completed public supporting facilities' final accounts.
(3) Recognition basis of Net Realizable Value of Inventory
On the balance sheet date, inventory shall be measured at the lower of cost or net realizable value, and provision shall be made for
falling price of inventories on the ground of the difference between the cost of each item of inventories and the net realizable value.
Inventories directly for sale, under normal producing process, to the amount after deducting the estimated sale expense and relevant
taxes from the estimated sell price of the inventory, the net realizable value has been recognized; inventories which need to be
processed, under normal producing process, to the amount after deducting the estimated cost of completion, estimated sale expense
and relevant taxes from the estimated sale price of produced finished goods, the net realizable value has been recognized; on the
balance sheet date, in the same item of inventories, if some have contractual price agreement while others do not, the net realizable
value shall be recognized respectively and compared with their cost, and the amount of provision withdrawal or reversal for falling
price of inventories shall be recognized respectively.
(4) Inventory System for Inventories
Inventory system: Perpetual inventory system
(5) Amortization Method of the Low-value Consumption Goods and Packing Articles
1) Low-value Consumption Goods
One-off amortization method
2) Packing Articles
One-off amortization method
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18. Assets Held for Sale
The Company divides its components (or non-current assets) meeting the following conditions into available for sale assets: (1)
Assets can be sold immediately under the current conditions according to the practice of selling such assets or disposal groups in
similar transactions; (2) The sale is likely to occur, and a resolution has been made on a sale plan and a firm purchase commitment is
obtained (a firm purchase commitment refers to a legally binding purchase agreement signed between an enterprise and other parties,
which contains important terms such as transaction price, time and severe penalty for breach of contract to minimize the possibility
of major adjustment or cancellation of the agreement. The sale is expected to be completed within a year. It has been approved by
relevant authorities or regulatory authorities according to relevant regulations.
The Company adjusts the estimated net residual value of available for sale assets to the net amount of its fair value minus the selling
expenses (which shall not exceed the original book value of the assets available for sale). The difference between the original book
value and the adjusted estimated net residual value shall be included in the current profit and loss as the loss of asset impairment, and
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 relevant standards.
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 relevant standards 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 relevant standards.
In case that an enterprise loses its control over a subsidiary due to sale of its investment in the subsidiary, the investment in the
subsidiary to be sold shall be divided into the available for sale category in individual financial statement of the parent company
when the proposed investment in the subsidiary meets the conditions for classification of available for sale category, and all assets
and liabilities of the subsidiary shall be classified into available for sale category in the consolidated financial statements, no matter
whether the enterprise retains part of equity investment after the sale.
19. Investments in Debt Obligations
Not applicable.
20. Investments in other Debt Obligations
Not applicable.
21. Long-term Receivable
Refer to Note V-11. Financial Instrument for details.
22. Long-term Equity Investments
(1) Judgment of Joint Control and Significant Influences
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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.
In cases of step-by-step implementation of business combinations under common control, the initial investment cost of the
investment shall be the share of the acquired entity's equity attributable to the acquiring entity on the acquisition date, calculated
based on the ownership percentage. The difference between the initial investment cost and the sum of the carrying value of the
original long-term Equity Investments and the carrying value of any additional consideration paid for further shares acquired on the
acquisition date is adjusted to share premium (capital surplus or share premium). If the share premium is insufficient, it is offset
against retained earnings.
2) For business combinations not under the same control, the fair value of the combination consideration paid by it on the acquisition
date shall be its initial investment cost.
3) Except for business combination: If it is acquired by paying cash, the actual acquisition price shall be taken as its initial investment
cost; if it is acquired by issuing equity securities, the fair value of the issued equity securities shall be taken as its initial investment
cost; if it is acquired by the investment of the investors, the value agreed in the investment contract or agreement shall be taken as its
initial investment cost (except when the agreed value is considered unfair).
(3) Method of subsequent measurement and recognition of profit or loss
For long-term equity investments in investees over which the Company has control, the cost method is used in the Company's
individual financial statements; for long-term equity investments with joint control or significant influence, the equity method is
applied.
Under the cost method, long-term equity investments are valued at the initial investment cost. Except for the price actually paid at the
acquisition of investment or the declared but undistributed cash dividends or profits included in the consideration, the Company
recognized the return on investment of the current period in accordance with the cash dividends or profits declared and distributed by
the investee, with consideration given to the impairment of long-term investments based on applicable impairment policies.
For long-term equity investment accounted for using the equity method, if the initial cost of long-term equity investment is greater
than the fair value of identifiable net assets of the invested company gained from the investment, the excess shall be included in the
initial investment cost of the long-term equity investment. If the initial investment cost is smaller than the fair value of identifiable
net assets of the invested company gained from the investment, the difference shall be included in the profit and loss for the current
period, and the cost of long-term equity investments shall be adjusted.
Under the equity method, after acquiring long-term equity investments, the investment gains or losses are realized based on the share
of net profit or loss that the investee entity shall be entitled to or share. The long-term equity investment's carrying value is adjusted
accordingly. When the share of the net profits and losses of the investee is recognized, the fair value of the investee's identifiable
assets at the time of obtaining the investment shall be used as the basis. This is done in accordance with the Company's accounting
policies and accounting period, and internal transaction gains and losses with joint ventures and associates are offset based on the
ownership proportion attributable to the investing company (except when internal transaction losses are related to asset impairment
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losses, in which case they shall be fully recognized). Subsequent to adjusting the net profits of the invested institution after
recognition. The investor reduces the carrying value of long-term equity investments correspondingly when calculating the portion to
be received based on the cash dividends or profits declared to be distributed by the invested company. The Company shall recognize
the net losses of the invested company until the carrying value of the long-term equity investment and other long-term rights and
interests which substantially form the net investment made to the invested company are reduced to zero, unless the Company has the
obligation to undertake extra losses. As for other changes in owners' equity except for the net profit and loss of the invested company,
the Company shall adjust the carrying value of the long-term equity investment and include it in the owners' equity.
(4) Determining the basis of common control and significant influence on the investee
The investor controls the investee, means that the investor has power over the investee, enjoys variable returns by participating in the
relevant activities of the investee, and has the ability to use the power over the investee to affect the amount of returns. Significant
influence means that the investor has the rights to participate in the decision-making of the financial and operating policies of the
investee, but cannot control or jointly control the formulation of these policies with other parties.
(5) Disposal of long-term equity investments
1) Partial disposal of long-term equity investments in a subsidiary without losing control
In the case of a partial disposal of long-term equity investments in a subsidiary without losing control, the variance between the
disposal proceeds and the corresponding carrying value of the disposed investment is recognized as current investment income.
2) Partial disposal of equity investments or other reasons for losing control of a subsidiary
In cases where control over a subsidiary is lost due to the disposal of equity investments or other reasons, the carrying value of long-
term equity investments corresponding to the disposed equity shall be transferred. The difference between the proceeds from the sale
and the carrying value of the disposed long-term equity investment shall be recognized as investment income (loss). At the same time,
the remaining equity shall be recognized at its carrying value as long-term equity investments or other related financial assets. If the
remaining equity after the disposal can exercise joint control or significant influence over the subsidiary, accounting treatment shall
be conducted in accordance with relevant regulations on the conversion from the cost method to the equity method.
(6) Impairment test method and impairment provision method
When there is objective evidence indicating impairment of the investment in subsidiaries, joint ventures and cooperative
enterprises on the balance sheet date, corresponding provision for impairment shall be made according to the difference between
the book value and recoverable amount.
23. Investment Property
Measurement mode of investment real estates
Measurement of cost method
Depreciation or amortization method
1. The term "investment real estate" includes the right to use any land which has already been rented, the right to use any land which
is held and prepared for transfer after appreciation, and the right to use any building which has already been rented.
2. The Company initially measures the investment property according to the costs, and adopts the cost method in the subsequent
measurement of investment property, and adopts the same methods with fixed assets and intangible assets to withdraw depreciation
or amortization. When there is any indication of impairment of investment property on the balance sheet date, corresponding
provision for impairment shall be made according to the difference between the book value and recoverable amount.
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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
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 - 20
assets depreciation
25. Construction in Progress
26. Borrowing Costs
1. Recognition Principle of Capitalization of Borrowing Costs
Where the borrowing costs incurred to the Company can be directly attributable to the acquisition and construction or production of
assets eligible for capitalization, it shall be capitalized and recorded into the costs of relevant assets. Other borrowing costs shall be
recognized as expenses when it occurred, and shall be recorded into the current profits and losses.
2. Capitalization Period of Borrowings Costs
(1) The borrowing costs shall not be capitalized unless they simultaneously meet the following requirements: 1) The asset
disbursements have already incurred; 2) The borrowing costs have already incurred; 3) The acquisition and construction or
production activities which are necessary to prepare the asset for its intended use or sale have already started.
(2) Where the acquisition and construction or production of a qualified asset is interrupted abnormally and the interruption period
lasts for more than 3 months, the capitalization of the borrowing costs shall be suspended. The borrowing costs incurred during such
period shall be recognized as expenses, and shall be recorded into the profits and losses of the current period, till the acquisition and
construction or production of the asset restarts.
(3) When the acquisition and construction or production of a qualified asset eligible for capitalization are available for its intended
use or sale, the capitalization of borrowing costs shall be stopped.
3. Capitalized rate and amount of borrowing costs
To the extent that funds are borrowed specifically for the purpose of acquiring or constructing a qualifying asset, the amount of
borrowing costs eligible for capitalization on that asset is determined as the actual interest costs (including amortization of discount
and premium confirmed according to effective interest method) incurred on that borrowing during the period less any investment
income on the temporary investment of the borrowing. To the extent that funds are borrowed generally and used for the purpose of
acquiring or constructing a qualifying asset, the amount of borrowing costs eligible for capitalization shall be determined by applying
a capitalization rate to the weighted average of excess of accumulated expenditures on qualifying asset over that on specific purpose
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borrowing. The capitalization rate is determined by calculating the weighted average interest rate on general borrowings.
27. Intangible Assets
(1) Useful life and the basis for its determination, estimation, amortization methodology or review procedures
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) The scope of R&D expenditure collection and the related accounting treatment
1. The scope of R&D expenditure
The Company classifies all expenses linked to R&D activities as R&D expenditures, covering R&D employee remuneration,
material input costs, depreciation charges, and amortization expenses.
2. The related accounting treatment of R&D expenditure
The expenditures in the research stage are included in the current profits and losses when incurred. An intangible asset arising from
the development phase of an internal project is recognized if the Company can demonstrate all of the following: (1) the technical
feasibility of completing the intangible asset so that it will be available for use or sale; (2) its intention to complete the intangible
asset and use or sell it; (3) how the intangible asset will generate probable future economic benefits, among other things, the
Company can demonstrate the existence of a market for the output of the intangible asset or the intangible asset itself or, if it is to be
used internally, the usefulness of the intangible asset; (4) the availability of adequate technical, financial and other resources to
complete the development and to use or sell the intangible asset; and (5) its ability to measure the expenditure attributable to the
intangible asset reliably during its development.
28. Impairment of Long-term Assets
For long-term assets such as long-term equity investments, investment property at cost model, fixed assets, construction in progress,
and intangible assets with finite useful lives, the assessment of potential indications of asset impairment is conducted on the balance
sheet date. For goodwill recognized in a business combination and intangible assets with indefinite useful lives, no matter whether
there is an indication of impairment, an impairment test is performed annually. An impairment test on goodwill is performed on a
related asset group or asset group portfolio.
The existence of the following signs indicates that the assets may be impaired:
(1) The market price of the assets has significantly dropped in the current period, with a decline much higher than expected due to the
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passage of time or normal usage; (2) The economic, technological, or legal environment in which the business operates, as well as the
market in which the assets are located, is undergoing or expected to undergo significant changes in the current period or in the near
future, adversely affecting the business; (3) Market interest rates or other market investment returns have increased in the current
period, impacting the discount rate used by the business to calculate the present value of expected future cash flows from the assets,
resulting in a significant decrease in the recoverable amount of the assets; (4) There is evidence indicating that the assets are obsolete
or their physical condition has deteriorated; (5) The assets have been or will be idle, discontinued, or planned for early disposal; (6)
Internal reports within the business show that the economic performance of the assets is or will be lower than expected, such as the
net cash flows generated by the assets or the operating profit (or loss) achieved being significantly lower than (or higher than) the
estimated amount; (7) Other indicators suggesting that the assets may have been impaired.
If there is any sign of impairment of the assets, their recoverable amount shall be estimated. The measurement result of the
recoverable amount shows that if the recoverable amount of the assets is lower than their book value, the book value of the assets
shall be written down to the recoverable amount, and the written-down amount shall be recognized as asset impairment losses, which
shall be included in the profit and loss for the current period, and the corresponding asset impairment provision shall be accrued at
the same time.
29. Long-term Prepaid Expenses
Long-term prepaid expense refers to various expenses that the company has incurred but shall be borne by the current and
subsequent periods for a period of more than one year (excluding one year). 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.
30. 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.
31. 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
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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 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.
32. 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.
33. Share-based Payment
Not applicable.
34. Other Financial Instruments such as Preference Shares and Perpetual Bonds
Not applicable.
35. Revenue
The Accounting Policy Adopted for Recognition and Measurement of Revenue Disclosed by Type of Business
1. Recognition of revenue
The Company gains revenue mainly from property sales, property management, sales of software and property leasing (refer to 39.
Leasing for more detail).
The Company recognizes revenue when it has fulfilled the obligation of contract performance, namely, when it has acquired the
control of the related commodity. The acquisition of control over a commodity refers to the capacity to control the use of the
commodity and to gain almost all economic interests thereof.
2. The Company judges whether a contract performance obligation is “a contract performance obligation fulfilled in a time
period” or “a contract performance obligation fulfilled at a time point” according to the terms in revenue standards, and
recognizes revenue according to the following principles.
(1) When the Company meets one of the following conditions, the obligation should be classified as a contract performance
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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.
3. 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 occurred
or will occur can be measured reliably. For the sale of self-occupied housing, the realization of sales income shall be recognized
under the following conditions: the main risks and rewards of ownership of self-occupied houses are transferred to the buyer, the
Company will no longer retain the continuous management rights normally associated with ownership and effectively control the
sold development products, the amount of income can be measured reliably, relevant economic benefits are likely to flow in, the
relevant costs that have occurred or will occur can be measured reliably. Only recognizing the sales income realization under the
following conditions: acquired the real estate completed and accepted as qualified (the completion and acceptance reports), signed an
irreversible sales contract, obtained the buyer's payment certificate (for those who chose bank mortgage, the first installment and the
full amount of bank mortgage must be required; If a bank mortgage is not selected for self-payment, the full amount of the property
is received), and the revenue is recognized as the earliest of the point in time when the notice of repossession is issued (which is
deemed to be the same as repossession if the owner fails to complete the formalities within the stipulated period due to the owner's
failure to do so in a timely manner) and the point in time when the owner actually repossesses the property.
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
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revenue from providing services employing the percentage-of-completion method, and confirm the completion of labor service
according to the costs incurred as a percentage of the total estimated costs. If the Company can’t, on the date of the balance sheet,
reliably estimate the outcome of a transaction concerning the labor services it provides, it shall be handled under the following
conditions: If the cost of labor services incurred is expected to be compensated, the revenue from the providing of labor services shall
be recognized in accordance with the amount of the cost of labor services incurred, and the cost of labor services shall be carried
forward at the same amount; If the cost of labor services incurred is not expected to compensate, the cost incurred should be included
in the current profits and losses, and no revenue from the providing of labor services may be recognized.
Property management revenue shall be recognized when property management services have been provided, economic benefits
related to property management services can flow into the enterprise, and costs related to property management can be reliably
measured.
3) Transferring the Right to Use Assets
The revenue of transferring the right to use assets may not be recognized unless the following conditions are both met: the relevant
economic benefits are likely to inflow to the Company; and the revenue can be reliably measured. The interest income shall be
recognized according to the time and actual interest rate in which other people use the Company’s monetary funds. Royalty revenue
shall be recognized according to the chargeable time and method stipulated in related contracts and agreements.
According to the lease date and lease amount agreed in the lease contract and agreement, the realization of rental property income
shall be recognized when relevant economic benefits are likely to flow in.
4) Software sales revenue
① Revenue recognition and measurement methods for sales of custom software and independent software products
Custom software refers to the special software designed and developed after the full on-site investigation of the user's business
according to the software development contract signed with the customer based on the actual needs of the user, and the resulting
developed software is not universal. Revenue is recognized over time based on the progress of completed performance obligations
over the contract period only if the goods produced by the Company in the course of performance have an irreplaceable use and the
Company is entitled to receive payment for the cumulative portion of performance completed to date throughout the contract period,
with the progress of completed performance obligations determined by the proportion of the contract costs actually incurred to
complete the performance obligations to the total estimated contract costs. Otherwise, the revenue is recognized at a certain point in
time.
For sales contracts of independent software products signed with the customer, the customer directly purchases the standard version
of the software, i.e., the real estate and facilities management platform, and the corresponding modules are deployed by
implementation personnel according to the customer's requirements. In this case, the performance obligations are to be performed at
a certain point in time. The revenue is recognized after the Company delivers the product to the customer and the customer accepts
the product.
② Revenue recognition and measurement methods for systems integration contracts
System integration includes the sale and installation of purchased merchandise and software products. The revenue is recognized
when the Company has transferred the primary risks and rewards of the ownership of the purchased merchandise to the purchaser;
the Company neither retained the continued management rights usually associated with the ownership, nor effectively controlled the
sold goods; the installation and commissioning of the system have been completed and the system has been put into trial operation,
or the initial inspection report of the purchaser is obtained; the economic benefits relevant to the transaction are likely to flow into the
Company, the relevant costs can be reliably measured.
③ Revenue recognition and measurement methods for technical service revenue
Technical service revenue mainly refers to the business of providing consulting, implementation and after-sales services of products
to customers as required by contracts. If a service period is agreed upon in a contract, it is considered as a performance obligation to
be performed within a certain period of time, and revenue is recognized for services settled with the customer in accordance with the
contracted service period during the service provision period.
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5) Other Business Income
(5) Other operating income is recognized when the customer obtains control of the relevant goods as stipulated in the relevant
contracts or agreements, upon the fulfillment of contractual obligations.
4. Measurement of Revenue
The Company should measure revenue according to the transaction prices apportioned to each of the individual contract performance
obligations. In determining a transaction price, the Company considers the impact of a number of factors, including variable
consideration, significant financing components in contracts, non-cash consideration, and consideration payable to customers.
(1) Variable consideration
The Company determines the best estimate of variable consideration according to the expected value or the amount most likely to
occur. But a transaction price containing variable consideration should not exceed the amount from the accumulated recognized
revenue that will probably not have any significant reversal when related uncertainties are eliminated. When assessing whether the
significant reversal of accumulated recognized revenue is almost impossible or not, a company should concurrently consider the
possibility and weight of the revenue reversal.
(2) Significant financing component
When a contract contains any financing component, the Company should determine the transaction price according to the amount
payable that is assumed to be paid in cash by the customer when it acquires control over the commodity. The difference between the
transaction price and the contract consideration should be amortized in the effective interest method during the contract period.
(3) Non-cash consideration
When a customer pays non-cash consideration, the Company should determine the transaction price according to the fair value of the
non-cash consideration. When such fair value cannot be reasonably estimated, the Company will indirectly determine the transaction
price by reference to the individual price committed by the Company for transferring the commodity to the customer.
(4) Consideration payable to a customer
For consideration payable to a customer, the Company should deduct the transaction price from the consideration payable, and
deduct the revenue for the current period at either the recognition of related revenue or the payment (or committed payment) of the
consideration to the customer, whichever is earlier, but excluding the case in which the consideration payable to the customer is for
the purpose of acquiring from the customer other commodities that can be obviously distinguished.
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 methods for the recognition and measurement of revenue caused by different business models for the same type of
business
Not applicable.
36. 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:
(1) 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.
(2) This cost has increased the Company’s sources that are used to fulfill its contract performance obligations in the future.
(3) This cost is expected to be recovered.
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An incremental cost that is incurred by the Company for acquiring a contract and expected to be recovered is recognized into an asset
as contract acquisition cost. However, for such asset with an amortization period of less than one year, the Company recognizes them
into current profit/loss at their occurrence.
Assets related to contract costs are amortized on the same basis for recognizing the revenue from commodities or services related to
such assets.
When the carrying value of an asset related to contract costs is higher than the difference between the following two items, the
Company will withdraw impairment provision for the exceeded part and recognize it as asset impairment loss:
(1) Residual consideration expected to be gained from transferring commodities and services related to this asset;
(2) 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.
37. Government Grants
1. If the government subsidies meet with the following conditions at the same, it should be recognized: (1) The entity will
comply with the condition attaching to them; (2) The grants will be received from government. If a government subsidy is a
monetary asset, it shall be measured according to the amount received or receivable. If a government subsidy is a non-monetary asset,
it shall be measured at its fair value, and shall be measured at a nominal amount when the fair value cannot be obtained reliably.
2. Judgment basis and accounting methods of government subsidies related to assets
The government subsidies that are acquired for construction or form long-term assets in other ways according to government
documents shall be defined as asset-related government subsidies. For those not specified in government documents, the judgment
shall be made based on the compulsory fundamental conditions for acquiring the subsidies. If the subsidies are acquired with
construction or the formation of long-term assets in other ways as fundamental conditions, they shall be recognized as asset-related
government subsidies. For asset-related government subsidies, the carrying value of related assets shall be written down or
recognized as deferred income. If asset-related government subsidies are recognized as deferred income, it shall be recorded into
profits or losses by period in a reasonable and systemic manner within the life of related assets. Government subsidies measured at
the nominal amount shall be directly recorded into current profits or losses. If related assets are sold, transferred, disposed of or
destroyed before the end of their life, the undistributed balance of related deferred income shall be transferred into the profits or
losses for the period of the asset disposal.
3. Judgment basis and accounting treatment of profits-related government subsidies
Government subsidies other than asset-related government subsidies shall be defined as profits-related government subsidies. For
government subsidies consisting of both asset-related parts and profits-related parts, which are difficult to judge whether they are
related to assets or profits, the entirety shall be classified as profits-related government subsidies. Profits-related government
subsidies that are used to compensate the related future expenses or losses shall be recognized as deferred income and shall be
included into the current profit/losses or offset relevant costs 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 or
offset relevant costs.
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.
38. 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.
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2. A deferred tax asset shall be recognized within the limit of taxable income that is likely to be obtained to offset the deductible
temporary differences. At the balance sheet date, where there is strong evidence showing that sufficient taxable profit will be
available against which the deductible temporary difference can be utilized, the deferred tax asset unrecognized in prior period shall
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.
39. Lease
(1) Accounting treatment for leases as the lessee
On the beginning date of the lease term, the Company will recognize the lease with a lease term not exceeding 12 months and
exclude the purchase option as a short-term lease. Leases with lower value when a single leased asset is a brand-new asset are
identified as low-value asset leases. If the Company sublets or expects to sublet the leased assets, the original lease shall not be
deemed as a low-value asset lease.
The Company records the payments of short-term and low-value asset leases incurred during each period of the lease term in the
relevant asset costs or the profit or loss for the current period by the units-of-consumption method.
The Company will recognize right-of-use assets and lease liabilities on the inception date of the lease term, excluding the above
short-term and low-value asset leases.
1) Right-of-use assets
The right-of-use asset is measured at cost and the cost shall comprise: 1) the amount of the initial measurement of the lease liabilities;
2) any lease payments made at or before the commencement date, less any lease incentives received; 3) any initial direct costs
incurred by the lessee; and 4) an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset,
restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the
lease.
The Company depreciates the right-of-use asset using the straight-line method. If it is reasonably certain that ownership of the leased
asset(s) will be obtained at the end of the lease term, the Company depreciates the leased asset(s) over its/their 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 Company
will depreciate the leased asset(s) over the lease term or the remaining service life, whichever is shorter.
2) Lease liabilities
At the commencement date, the Company measures the lease liabilities at the present value of the lease payments that are not paid at
that date, The Company uses the interest rate implicit in lease as the rate of discount when calculating the present value of the lease
payments. The incremental interest rate on borrowing of the lessee will be used as the rate of discount, if the interest rate implicit in
lease cannot be determined. The difference between the lease payment and its present value is regarded as an unrecognized financing
expense. Interest expense is recognized at the discount rate of the present value of the recognized lease payment during each period
of the lease term and is recorded in the profit and loss for the current period. Variable lease payments that are not covered in the
measurement of the lease liabilities are included in current profit or loss when actually incurred.
After the commencement date, if there is a change in the following items: (a) actual fixed payments; (b) amounts expected to be
payable under residual value guarantees; (c) an index or a rate used to determine lease payments; (d) assessment result or exercise of
purchase option, extension option or termination option., the Company remeasures the lease liabilities based on the present value of
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lease payments after changes, and adjusts the carrying amount of the right-of-use asset accordingly. If the carrying amount of the
right-of-use asset is reduced to zero but there shall be a further reduction in the lease liabilities, the remaining amount shall be
recognized into profit or loss.
(2) Accounting treatment of leases as the lessor
On the start date of the lease term, the Company divides the lease that substantially transfers almost all risks and rewards related to
the ownership of the leased assets into finance leases, except for operating leases.
1) Operating lease
The Company recognizes the lease payments receivable as rental earnings in each period within the lease term on a straight-line basis.
The initial direct costs related to the operating lease are capitalized, amortized within the lease term on the same basis as the
recognition of rental earnings, and included in the profit or loss for the current period. Variable lease payments obtained by the
Company in relation to operating leases that are not included in the lease receivable are included in the profit or loss for the current
period when they are actually incurred.
2) Financial lease
At the commencement date, the Company recognizes the finance lease payment receivable based on the net investment in the lease
(sum of the present value of unguaranteed residual value and lease receipts that are not received at the commencement date,
discounted by the interest rate implicit in the lease), and derecognizes assets held under the finance lease. The Company calculates
and recognizes interest income using the interest rate implicit in the lease over the lease term.
Variable lease payments not included in the measurement of the net investment in the lease are charged as profit or loss in the periods
in which they are incurred.
3) Underlease
The Company, as the underlease lessor, applied accounting treatment to the head lease agreement and the sublease agreement in
accordance with the accounting requirements of both the lessee and lessor. If a head lease is a short-term lease and simplified
accounting treatment was applied, then it classifies the sub-lease as an operating lease.
(3) Sale and leaseback
1. The Company as the lessee
The Company assesses whether the asset transfer in a sale and leaseback transaction is a sale in accordance with relevant provisions
of the Accounting Standards for Business Enterprises No. 14 - Income.
If the asset transfer in a sale and leaseback transaction is a sale, the Company measures the right-of-use assets formed by the sale and
leaseback based on the portion of the original asset's carrying value that is related to the use right acquired by the leaseback, and
recognizes related gains or losses only for the right transferred to the lessor.
If the asset transfer in a sale and leaseback transaction is not a sale, the Company continues to recognize the transferred asset and at
the same time recognizes a financial liability equivalent to the transfer income, and conducts corresponding accounting treatment for
the financial liability in accordance with the Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement
of Financial Instruments.
2. The Company as lessor
The Company assesses whether the asset transfer in a sale and leaseback transaction is a sale in accordance with relevant provisions
of the Accounting Standards for Business Enterprises No. 14 - Income.
If the asset transfer in a sale and leaseback transaction is a sale, the Company applies other accounting standards for business
enterprises to the accounting treatment for asset purchase, and conducts corresponding accounting treatment for asset lease in
accordance with the Accounting Standard for Business Enterprises No. 21 - Leases.
If the asset transfer in a sale and leaseback transaction is not a sale, the Company does not recognize the transferred asset, but
recognizes a financial asset equivalent to the transfer income, and conducts corresponding accounting treatment for the financial asset
in accordance with the Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial
Instruments.
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
40. Other Important Accounting Policies and Accounting Estimations
Confirmation standard and accounting handling method for operation termination
Components which meet one of the following conditions, have been disposed or divided as held for sale category and can be
distinguished separately are confirmed as operation termination.
1) The component represents one important independent main business or one single main operation area.
2) The component is one part of a related plan which plans to dispose one independent main business or one single main operation
area.
41. Changes in Main Accounting Policies and Estimates
(1) Change of Accounting Policies
Applicable □ Not applicable
Unit: RMB
Content and reason of changes in Name of statement item materially
Amount affected
accounting policies affected
Deferred income tax assets on 31
24,500,761.16
At the initiation of the lease transaction, December 2022
the lessee acknowledges the lease Deferred income tax liabilities 31
liability and incorporates the right-of- 22,737,325.56
December 2022
use asset without exempting the initial
recognition of deferred tax liabilities Surplus reserve 31 December 2022 5,970.29
and assets, resulting in the recognition Retained earnings 31 December 2022 1,697,650.08
of the respective deferred tax liabilities Minority interests 31 December 2022 59,815.23
and deferred tax assets at the
transaction occurrence. Income tax expense for 2022 330,314.64
Net profit for 2022 -330,314.64
(2) Changes in Accounting Estimates
□Applicable Not applicable
(3) Adjustments to Financial Statement Items at the Beginning of the Year of the First Implementation of the New
Accounting Standards Implemented since 2023
□Applicable Not applicable
Note of adjustment
42. Other
In the Note of the financial statements, the data of the period-beginning refers to the financial statement data on 1 January 2023;
the data of the period-end refers to the financial statement data on 31 December 2023; the Reporting Period refers to the 2023; the
same period of last year refers to the 2022. The same to the Company as the parent.
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
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
VAT of land 30%-60%
lands and property right of above-ground
buildings and other attachments
Levied according to price: paid
according to 1.2% of the residual value
of the real estate’s original value after
Real estate tax 1.2%、12%
deducted 30% at once; levied according
to lease: paid according to 12% of the
rental income
Education surcharge Turnover tax payable 3%
Local education surcharge Turnover tax payable 2%
Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate
Name Income tax rate
Chongqing Shenzhen International Trade Center Property
15%
Management Co., Ltd.
Shenzhen International Trade Center Property Management
15%
Co., Ltd. Chongqing Branch
Shenzhen Facility Management Community Co., Ltd 15%
Shenzhen Property Engineering and Construction Supervision
20%
Co., Ltd.
Shenzhen Julian Human Resources Development Co.,Ltd. 20%
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 Sports Service Co., Ltd. 20%
Shenzhen Penghongyuan Industrial Development Co., Ltd. 20%
Shenzhen Guoguan Electromechanical Device Co., Ltd. 20%
147
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Shenzhen Shenshan Special Cooperation Zone Guomao
20%
Property Development Co., Ltd.
Shenzhen Helinhua Construction Management Co., Ltd. 20%
Shenzhen Guomao Tongle Property Management Co., Ltd. 20%
Shenzhen Foreign Trade Property Management Co., Ltd. 20%
Shenzhen Fubao Urban Resources Management Co., Ltd. 20%
Shenzhen Shenwu Elevator Co., Ltd. 20%
Shenzhen Shenfang Property Cleaning Co., Ltd. 20%
Shandong International Trade Center Hotel Management Co.,
20%
Ltd.
Shenzhen Shenfubao Hydropower Municipal Service Co., Ltd. 20%
Shenzhen Jiayuan Property Management Co., Ltd. 20%
Shenzhen Guomao Shenlv Gardening Co.， Ltd. 20%
Beijing Facility Home Technology Co., Ltd. 20%
Subsidiaries registered in Hong Kong area 16.50%
Subsidiaries registered in Vietnam area 20%
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 subsidiaries of the Group Chongqing Shenzhen International Trade
Center Property Management Co., Ltd. and Shenzhen International Trade Center Property Management Co., Ltd. Chongqing
Branch applied to above policy.
On 19 December 2022, Shenzhen Facility Management Community Technology Co., Ltd. successfully passed the re-evaluation for
its High-tech Enterprise Certificate. The company has been assigned certificate number GR202244204675, and the certificate is
valid for three years. As per the tax laws and regulations, the company will be eligible for a preferential enterprise income tax rate
of 15% for the year 2023.
According to the Announcement of the State Taxation Administration and the Ministry of Finance on Further Implementing the
Preferential Income Tax Policy for Small and Micro Enterprises (Announcement No. 13 of 2022 of the Ministry of Finance and
the State Taxation Administration), for small and micro-profit enterprises, if their annual taxable income exceeds RMB1 million
but does not exceed RMB3 million from 1 January 2022 to 31 December 2024, the taxable income will be reduced by 25%, and
the enterprise income tax rate will be 20%. According to the Announcement of the State Taxation Administration and the Ministry
of Finance on the Implementation of Preferential Income Tax Policies for Small and Micro Enterprises and Individual Industrial
and Commercial Entities (Announcement No. 6 of 2023 of the Ministry of Finance and the State Taxation Administration), from1
January 2023 to 31 December 2024, for the portion of the annual taxable income of small- and micro-sized enterprises not
exceeding RMB1 million, the taxable income shall be reduced by 25% and subject to enterprise income tax at a rate of 20%.
According to the Announcement of the State Taxation Administration and the Ministry of Finance on Further Supporting Small
and Micro Enterprises and Individual Industrial and Commercial Businesses through Relevant Tax and Fee Policies
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
(Announcement No. 12 of 2023 of the Ministry of Finance and the State Taxation Administration), for small and micro enterprises,
the policy of applying a reduced rate of 25% for calculating the taxable income and paying enterprise income tax at a rate of 20%
will continue to be implemented until 31 December 2027. This policy applies to 29 subsidiaries, including Shenzhen Property
Engineering and Construction Supervision Co., Ltd. and Shenzhen Julian Human Resources Development Co., Ltd.
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 75,265.01 43,833.00
Bank deposits 2,742,094,318.81 1,512,202,363.19
Other monetary funds 6,628,892.90 5,282,697.64
Total 2,748,798,476.72 1,517,528,893.83
Of which: total amount deposited overseas 62,161,463.84 66,436,595.66
Other notes:
At the end of the period, the amount of restriction in use by guaranteed, pledged or frozen is RMB15,659,341.60, mainly including
the margin and interest of RMB3,333,604.61; the funds with limited use rights in bank deposits mainly include the bank frozen funds
of RMB3,681,570.32 and the interest on time deposits of RMB8,644,166.67. The above amount is not regarded as cash and cash
equivalents due to restrictions on use.
The funds deposited overseas are mainly the balance of monetary assets of the overseas subsidiaries Shum Yip Development
Company Limited and Vietnam Shenguomao Property Management Co., Ltd.
2. Trading Financial Assets
Unit: RMB
Item Ending balance Beginning balance
Of which:
Of which:
Other notes:
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3. Notes Receivable
(1) Notes Receivable Listed by Category
Unit: RMB
Item Ending balance Beginning balance
(2) Disclosure by Withdrawal Methods for Bad Debts
Unit: RMB
Ending balance Beginning balance
Category Carrying amount Bad debt provision Carrying amount Bad debt provision
Carrying Carrying
Withdrawal value Withdrawal value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Of
which:
Of
which:
If adopting the general mode of expected credit loss to withdraw bad debt provision of notes receivable:
□Applicable Not applicable
(3) Bad Debt Provision Withdrawal, Reversed or Recovered in the Current Period
Withdrawal of bad debt provision:
Unit: RMB
Changes in the current period
Beginning
Category Reversed or Ending balance
balance Withdrawal Verification Others
recovered
Of which significant amount of recovered or transferred-back bad debt provision for the current period:
□Applicable Not applicable
(4) Notes Receivable Pledged by the Company at the Period-end
Unit: RMB
Item Ending pledged amount
(5) 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
(6) Notes Receivable Written-off in Current Period
Unit: RMB
Item Written-off amount
Of which, verification of significant notes receivable:
Unit: RMB
Verification Whether occurred
Reason for
Name of the entity Nature Written-off amount procedures because of related-
verification
performed party transactions
Notes of the verification of notes receivable
150
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
4. Accounts Receivable
(1) Disclosure by Aging
Unit: RMB
Aging Ending carrying amount Beginning carrying amount
Within one year (including 1 year) 425,235,829.74 394,914,334.75
One to two years 83,584,196.31 31,016,372.76
Two to three years 19,037,312.67 12,333,910.99
More than three years 127,356,876.62 120,622,137.82
Three to four years 10,334,088.28 6,141,296.85
Four to five years 4,135,080.24 4,392,591.92
Over 5 years 112,887,708.10 110,088,249.05
Total 655,214,215.34 558,886,756.32
(2) Disclosure by Withdrawal Methods for Bad Debts
Unit: RMB
Ending balance Beginning balance
Category Carrying amount Bad debt provision Carrying amount Bad debt provision
Withdrawal Carrying value Withdrawal Carrying value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Accounts
receivable
withdrawal
of Bad
debt 115,895,721.46 17.69% 113,235,195.18 97.70% 2,660,526.28 111,808,371.14 20.01% 109,689,294.54 98.10% 2,119,076.60
provision
separately
accrued
Of which:
Accounts
receivable
withdrawal
of bad debt 539,318,493.88 82.31% 39,172,566.28 7.26% 500,145,927.60 447,078,385.18 79.99% 29,263,546.48 6.55% 417,814,838.70
provision
of by
group
Of which:
Total 655,214,215.34 100.00% 152,407,761.46 23.26% 506,088,217.25 558,886,756.32 100.00% 138,952,841.02 24.86% 419,933,915.30
Bad debt provision separately accrued: 113235195.18
Unit: RMB
Beginning balance Ending balance
Name
Carrying Bad debt Carrying Bad debt Withdrawal Reason for
amount provision amount provision proportion withdraw
Shenzhen Jiyong Involved in
Properties & Resources 93,811,328.05 93,811,328.05 93,811,328.05 93,811,328.05 100.00% lawsuit and
Development Company unrecoverable
Shenzhen Tewei Industry Expected to be
2,836,561.00 2,836,561.00 2,836,561.00 2,836,561.00 100.00%
Co., Ltd. unrecoverable
Lunan Industry Expected to be
2,818,284.84 2,818,284.84 2,818,284.84 2,818,284.84 100.00%
Corporation unrecoverable
Shenzhen Hampoo Science Expected to be
1,436,020.29 1,433,070.29 1,436,020.29 1,433,070.29 99.79%
& Technology Co., Ltd. unrecoverable
Those with insignificant
single amount for which Uncollectible for a
10,906,176.96 8,790,050.36 14,993,527.28 12,335,951.00 82.28%
bad debt provision long period
separately accrued
151
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Total 111,808,371.14 109,689,294.54 115,895,721.46 113,235,195.18
Withdrawal of bad debt provision by group: 39,172,566.28
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Portfolio of credit risk features 305,321,229.88 27,133,657.43 8.89%
Portfolio of transactions with
212,618,383.72 12,038,908.85 5.66%
other related parties
Government portfolio 21,378,880.28
Total 539,318,493.88 39,172,566.28
Notes to the determination basis for the group:
If adopting the general mode of expected credit loss to withdraw bad debt provision of accounts receivable:
□Applicable Not applicable
(3) Bad Debt Provision Withdrawal, Reversed or Recovered in the Current Period
Withdrawal of bad debt provision:
Unit: RMB
Changes in the current period
Beginning
Category Ending balance
balance Reversed or
Withdrawal Verification Others
recovered
Bad debt
provision
109,689,294.54 3,545,900.64 113,235,195.18
separately
accrued
Withdrawal of
bad debt
29,263,546.48 9,909,019.80 39,172,566.28
provision by
group
Total 138,952,841.02 13,454,920.44 152,407,761.46
Of which significant amount of recovered or transferred-back bad debt provision for the current period:
Unit: RMB
Basis and rationality of
Amount reversed or determining the original
Name of the entity Reason for reversal Way of recovery
recovered withdrawal proportion of
bad debt provision
N/A
(4) Accounts Receivable Written-off in Current Period
Unit: RMB
Item Written-off amount
Of which the verification of significant accounts receivable:
Unit: RMB
Reason for Verification Whether occurred
Name of the entity Nature Written-off amount
verification procedures because of related-
152
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
performed party transactions
Notes to verification of accounts receivable:
(5) Top 5 of the Ending Balance of the Accounts Receivable and the Contract Assets Collected according to
Arrears Party
Unit: RMB
Ending balance of
bad debt provision
Proportion to total
Ending balance of of accounts
Ending balance of Ending balance of ending balance of
Name of the entity accounts receivable receivable and
accounts receivable contract assets accounts receivable
and contract assets impairment
and contract assets
provision for
contract assets
Shenzhen Bay
Technology
137,865,750.97 137,865,750.97 21.01% 7,568,725.60
Development Co.,
Ltd.
Shenzhen Futian
Talent Anju Co., 109,392,112.37 109,392,112.37 16.67% 3,281,763.37
Ltd.
Shenzhen Jiyong
Properties &
Resources 93,811,328.05 93,811,328.05 14.30% 93,811,328.05
Development
Company
Hebei Shenbao
Investment
27,085,777.03 361,513.73 27,447,290.76 4.18% 812,573.31
Development Co.,
Ltd.
Shenzhen Futian
District Government
21,378,880.28 21,378,880.28 3.26%
Property
Management Centre
Total 389,533,848.70 361,513.73 389,895,362.43 59.42% 105,474,390.33
5. Contract Assets
(1) List of Contract Assets
Unit: RMB
Ending balance Beginning balance
Item Bad debt Bad debt
Carrying amount Carrying value Carrying amount Carrying value
provision provision
Municipal
engineering 844,485.57 844,485.57 1,094,632.90 1,094,632.90
retention money
Total 844,485.57 844,485.57 1,094,632.90 1,094,632.90
(2) Significant changes in the amount of carrying value and the reason in the Reporting Period
Unit: RMB
Item Change in amount Reason(s)
(3) Disclosure by Withdrawal Methods for Bad Debts
Unit: RMB
Ending balance Beginning balance
Category
Carrying amount Bad debt provision Carrying Carrying amount Bad debt provision Carrying
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Withdrawal value Withdrawal value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Of which:
Of which:
Withdrawal of bad debt provision by adopting the general mode of expected credit loss
□Applicable Not applicable
(4) Bad Debt Provision Withdrawal, Reversed or Recovered in the Current Period
Unit: RMB
Withdrawal of the Reversal or recovery in Write-off/verified for the
Item Reason
current period the Reporting Period current period
Of which significant amount of recovered or transferred-back bad debt provision for the current period:
Unit: RMB
Basis and rationality of
Amount reversed or determining the original
Name of the entity Reason for reversal Way of recovery
recovered withdrawal proportion of
bad debt provision
Other notes:
(5) Contract Assets Written-off in Current Period
Unit: RMB
Item Written-off amount
Of which the verification of significant contract assets
Unit: RMB
Verification Whether occurred
Reason for
Name of the entity Nature Written-off amount procedures because of related-
verification
performed party transactions
Notes to verification of contract assets:
Other notes:
6. Accounts Receivable Financing
(1) Accounts Receivable Financing Listed by Category
Unit: RMB
Item Ending balance Beginning balance
(2) Disclosure by Withdrawal Methods for Bad Debts
Unit: RMB
Ending balance Beginning balance
Category Carrying amount Bad debt provision Carrying amount Bad debt provision
Carrying Carrying
Withdrawal value Withdrawal value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Of which:
Of which:
154
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Withdrawal of bad debt provision by adopting the general mode of expected credit loss
Unit: RMB
First stage Second stage Third stage
Expected loss in the
Bad debt provision Expected loss in the Total
Expected credit loss in duration (credit
duration (credit
the next 12 months impairment not
impairment occurred)
occurred)
Balance of 1 January
2023 in the current
period
The basis for the division of each stage and the withdrawal proportion of bad debt provision
Notes to significant changes in the carrying amount of accounts receivable financing with amount changed of loss provision in the
current period:
(3) Bad Debt Provision Withdrawal, Reversed or Recovered in the Current Period
Unit: RMB
Changes in the current period
Beginning
Category Reversed or Charged- Ending balance
balance Withdrawal Other changes
recovered off/Written-off
Of which significant amount of recovered or transferred-back bad debt provision for the current period:
Unit: RMB
Basis and rationality of
Amount reversed or determining the original
Name of the entity Reason for reversal Way of recovery
recovered withdrawal proportion of
bad debt provision
Other notes:
(4) Accounts Receivable Financing Pledged by the Company at the Period-end
Unit: RMB
Item Ending pledged amount
(5) Accounts Receivable Financing 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
(6) Accounts Receivable Financing with Actual Verification for the Current Period
Unit: RMB
Item Written-off amount
Of which the verification of significant accounts receivable financing
Unit: RMB
Reason for Verification Whether occurred
Name of the entity Nature Written-off amount
verification procedures because of related-
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
performed party transactions
Notes to verification:
(7) The changes of accounts receivable financing in the Current Period and the changes in fair value
(8) Other Notes
7. Other Receivables
Unit: RMB
Item Ending balance Beginning balance
Other receivables 624,394,372.82 639,903,523.33
Total 624,394,372.82 639,903,523.33
(1) Interest Receivable
1) Category of Interest Receivable
Unit: RMB
Item Ending balance Beginning balance
2) Significant Overdue Interest
Unit: RMB
Whether occurred
Entity Ending balance Overdue time Overdue reason impairment and its
judgment basis
Other notes:
3) Disclosure by Withdrawal Methods for Bad Debts
□Applicable Not applicable
4) Bad Debt Provision Withdrawal, Reversed or Recovered in the Current Period
Unit: RMB
Changes in the current period
Beginning
Category Reversed or Charged- Ending balance
balance Withdrawal Other changes
recovered off/Written-off
Of which significant amount of recovered or transferred-back bad debt provision for the current period:
Unit: RMB
Basis and rationality of
Amount reversed or determining the original
Name of the entity Reason for reversal Way of recovery
recovered withdrawal proportion of
bad debt provision
Other notes:
5) Interest Receivable Written-off in Current Period
Unit: RMB
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Item Written-off amount
Of which the verification of significant interest receivable:
Unit: RMB
Verification Whether occurred
Reason for
Name of the entity Nature Written-off amount procedures because of related-
verification
performed party transactions
Notes to verification:
Other notes:
(2) Dividend Receivable
1) Category of Dividend Receivable
Unit: RMB
Project (or investee) Ending balance Beginning balance
2) Significant Dividends Receivable Aging over 1 Year
Unit: RMB
Whether occurred
Project (or investee) Ending balance Aging Reason impairment and its
judgment basis
3) Disclosure by Withdrawal Methods for Bad Debts
□Applicable Not applicable
4) Bad Debt Provision Withdrawal, Reversed or Recovered in the Current Period
Unit: RMB
Changes in the current period
Beginning
Category Reversed or Charged- Ending balance
balance Withdrawal Other changes
recovered off/Written-off
Of which significant amount of recovered or transferred-back bad debt provision for the current period:
Unit: RMB
Basis and rationality of
Amount reversed or determining the original
Name of the entity Reason for reversal Way of recovery
recovered withdrawal proportion of
bad debt provision
Other notes:
5) Dividends Receivable Written-off in Current Period
Unit: RMB
Item Written-off amount
Of which the verification of significant dividends receivable:
Unit: RMB
Reason for Verification Whether occurred
Name of the entity Nature Written-off amount
verification procedures because of related-
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
performed party transactions
Notes to verification:
Other notes:
(3) Other Receivables
1) Category of Other Receivables by Account Nature
Unit: RMB
Nature Ending carrying amount Beginning carrying amount
Security deposit 9,813,980.43 14,333,480.59
Margin 45,417,519.59 33,052,554.40
Reserve fund 63,090.95 315,131.82
Payment on behalf 2,826,478.51 7,861,406.33
Intercourse funds 597,882,606.95 645,712,452.33
Others 63,021,059.95 26,868,828.99
Total 719,024,736.38 728,143,854.46
2) Disclosure by Aging
Unit: RMB
Aging Ending carrying amount Beginning carrying amount
Within one year (including 1 year) 39,565,801.00 45,898,989.35
One to two years 11,760,542.45 582,305,977.29
Two to three years 571,247,946.92 32,848,373.42
More than three years 96,450,446.01 67,090,514.40
Three to four years 31,254,533.77 1,460,635.19
Four to five years 1,068,702.68 1,563,169.64
Over 5 years 64,127,209.56 64,066,709.57
Total 719,024,736.38 728,143,854.46
3) Disclosure by Withdrawal Methods for Bad Debts
Applicable □Not applicable
Unit: RMB
Ending balance Beginning balance
Category Carrying amount Bad debt provision Carrying amount Bad debt provision
Withdrawal Carrying value Withdrawal Carrying value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Bad debt
provision
627,054,431.42 87.21% 47,169,474.26 7.52% 579,884,957.16 626,762,447.67 86.08% 47,091,584.18 7.51% 579,670,863.49
separately
accrued
Of which:
Withdrawal
of bad debt
91,970,304.96 12.79% 47,460,889.30 51.60% 44,509,415.66 101,381,406.79 13.92% 41,148,746.95 40.59% 60,232,659.84
provision
by group
Of which:
Total 719,024,736.38 100.00% 94,630,363.56 13.16% 624,394,372.82 728,143,854.46 100.00% 88,240,331.13 12.12% 639,903,523.33
Bad debt provision separately accrued: 47,169,474.26
158
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Unit: RMB
Beginning balance Ending balance
Name Bad debt Bad debt Withdrawal Reason for
Carrying amount Carrying amount
provision provision proportion withdraw
Shenzhen Xinhai
Holding Co., Ltd.
and the related
party Shenzhen
Xinhai Rongyao
Real Estate Prudent
Development 587,289,550.00 17,618,686.51 587,289,550.00 17,618,686.51 3.00% judgment of
Co., Ltd., recovery risk
Shenzhen
Qianhai
Advanced
Information
Service Co., Ltd.
Shenzhen
Tianjun
10,000,000.00 10,000,000.00
Industrial Co.,
Ltd.
Shanghai Yutong
Uncollectible for
Real Estate Co., 5,676,000.00 5,676,000.00 5,676,000.00 5,676,000.00 100.00%
a long period
Ltd.
Hong Kong Yue
Heng Uncollectible for
3,271,837.78 3,271,837.78 3,271,837.78 3,271,837.78 100.00%
Development a long period
Co., Ltd.
Dameisha Uncollectible for
2,576,445.69 2,576,445.69 2,576,445.69 2,576,445.69 100.00%
Tourism Centre a long period
Elevated train Uncollectible for
2,542,332.43 2,542,332.43 2,542,332.43 2,542,332.43 100.00%
project a long period
Those with
insignificant
single amount for
Uncollectible for
which bad debt 15,406,281.77 15,406,281.77 15,698,265.52 15,484,171.85 98.64%
a long period
provision
separately
accrued
Total 626,762,447.67 47,091,584.18 627,054,431.42 47,169,474.26
Withdrawal of bad debt provision by group: 47,460,889.30
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Within one year (including 1
23,075,962.34 691,185.85 3.00%
year)
1-2 years (including 2 years) 3,314,367.18 331,442.66 10.00%
2-3 years (including 3 years) 4,736,819.03 1,421,055.79 30.00%
3-4 years (including 4 years) 31,254,533.77 15,627,266.89 50.00%
4-5 years (including 5 years) 993,422.68 794,738.15 80.00%
Over 5 years 28,595,199.96 28,595,199.96 100.00%
Total 91,970,304.96 47,460,889.30
Notes to the determination basis for the group:
Withdrawal of bad debt provision by adopting the general mode of expected credit loss:
159
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Unit: RMB
First stage Second stage Third stage
Expected loss in the
Bad debt provision Expected loss in the Total
Expected credit loss in duration (credit
duration (credit
the next 12 months impairment not
impairment occurred)
occurred)
Balance of 1 January
58,445,816.20 29,794,514.93 88,240,331.13
2023
Balance of 1 January
2023 in the current
period
——Transferred to
-17,297,069.24 17,297,069.24
phase II
Withdrawal of the
6,369,310.29 77,890.08 6,447,200.37
current period
Amount transferred-
back for the current 57,167.94 57,167.94
period
Balance of 31
47,460,889.30 17,297,069.24 29,872,405.02 94,630,363.56
December 2023
The basis for the division of each stage and the withdrawal proportion of bad debt provision
Changes of carrying amount with significant amount changed of loss provision in the current period
□Applicable Not applicable
4) Bad Debt Provision Withdrawn, Reversed or Recovered in the Current Period
Withdrawal of bad debt provision:
Unit: RMB
Changes in the current period
Beginning
Category Reversed or Charged- Ending balance
balance Withdrawal Others
recovered off/Written-off
Bad debt
provision
47,091,584.18 77,890.08 47,169,474.26
separately
accrued
Withdrawal of
bad debt
41,148,746.95 6,369,310.29 57,167.94 47,460,889.30
provision by
group
Total 88,240,331.13 6,447,200.37 57,167.94 94,630,363.56
Of which the bad debt provision recovered or transferred-back with significant amount during the current period:
Unit: RMB
Basis and rationality of
Amount reversed or determining the original
Name of the entity Reason for reversal Way of recovery
recovered withdrawal proportion of
bad debt provision
5) Particulars of the Actual Verification of Other Receivables during the Current Period
Unit: RMB
Item Written-off amount
160
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Of which the verification of significant other receivables:
Unit: RMB
Verification Whether occurred
Reason for
Name of the entity Nature Written-off amount procedures because of related-
verification
performed party transactions
Notes to the verification of other receivables:
6) Top 5 of the Ending Balance of Other Receivables Collected according to the Arrears Party
Unit: RMB
Proportion to total
Ending balance of
Name of the entity Nature Ending balance Aging ending balance of
bad debt provision
other receivables %
Shenzhen Xinhai
Holding Co., Ltd.
and the related party
Between two year
Shenzhen Xinhai Intercourse funds 576,568,974.73 80.19% 17,297,069.25
and five years
Rongyao Real Estate
Development Co.,
Ltd.
Shenzhen Bangling
Between three year
Stock Cooperative Intercourse funds 30,000,000.00 4.17% 15,000,000.00
and four years
Company
Shenzhen Qianhai
Advanced Between two year
Intercourse funds 10,720,575.27 1.49% 321,617.26
Information Service and three years
Co., Ltd.
Shenzhen Bay
Technology
Intercourse funds 10,065,313.75 Within 1 year 1.40% 301,959.41
Development Co.,
Ltd.
Total 627,354,863.75 87.25% 32,920,645.92
7) Presentation in Other Receivables due to the Centralized Management of Funds
Unit: RMB
Other notes:
N/A
8. Prepayment
(1) Prepayment Listed by Aging Analysis
Unit: RMB
Ending balance Beginning balance
Aging
Amount Proportion Amount Proportion
Within 1 year 11,077,693.87 88.07% 98,477,532.46 97.56%
One to two years 388,465.12 3.09% 1,652,279.14 1.64%
Two to three years 304,932.40 2.42% 1,438.19 0.00%
More than three years 211,994.96 6.42% 210,556.77 0.80%
Total 11,983,086.35 100,341,806.56
Notes of the reasons of the prepayment aging over 1 year with significant amount but failed settled in time:
161
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
(2) Top 5 Prepayment in Ending Balance Collected according to the Prepayment Target
Proportion to total ending balance of accounts
Name of the entity Ending balance
prepaid (%)
Yangzhou Broadcasting Television Network Co., Ltd. 2,775,769.50 22.07
Chongqing Yudi Assets Management Co., Ltd. 1,897,674.45 15.09
China State Construction & Engineering 4th Bureau 5th Corp
568,181.04 4.52
Limited
Beijing Jingdong Century Information Technology Co., Ltd. 514,727.63 4.09
Hangzhou New Windows Information Technology Co., Ltd. 311,946.90 2.48
Total 6,068,299.52 48.24
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
Ending balance Beginning balance
Depreciation Depreciation
reserves of reserves of
inventories or inventories or
Item impairment impairment
Carrying amount Carrying value Carrying amount Carrying value
provision for provision for
contract contract
performance performance
costs costs
R&D expenses 11,174,583,667.43 218,824,035.97 10,955,759,631.46 10,778,950,699.23 6,648,404.13 10,772,302,295.10
Developing
141,176,477.91 141,176,477.91 199,674,693.59 199,674,693.59
properties
Contract
performance 1,965,933.85 1,965,933.85
costs
Raw materials 1,533,601.80 915,223.04 618,378.76 1,891,354.81 1,040,612.30 850,742.51
Inventory goods 2,564,024.46 2,094,300.39 469,724.07 2,536,973.19 2,094,300.39 442,672.80
Low-value
184,883.54 184,883.54 97,885.52 97,885.52
consumables
Total 11,320,042,655.14 221,833,559.40 11,098,209,095.74 10,985,117,540.19 9,783,316.82 10,975,334,223.37
Disclose main items of “R&D expenses” and interest capitalization in the following format:
Unit: RMB
Time for Estimated Estimated Beginning Transferred to Other Increase Ending Accumulated Of which: Capital
Project name
commencement date of total balance developing decreased (R&D balance amount of amount of resources
162
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
completion investment properties for amount for expenses) for interest capitalized
the current the current the current capitalization interests for
period period period the current
period
10 8,400,000,000 4,686,202, 535,922,056. 5,222,124, 357,489,702.3 119,186,19 Bank
Lanhu Shidai 15 October
September
project 2020 .00 152.53 32 208.85 9 2.41 loans
2026
SZPRD-
Fuchang 911,330,000.0 747,287,5 39,992,131.0
27 December 15 May
Garden Phase 787,279,703.02 0.00 Others
2018 2023 0 71.94 8
II (Fuhui
Huayuan)
Humen Sea 30 April 3,217,590,000 2,361,567, 198,080,476. 2,559,648, 9,600,985.3 Bank
22 March 2022 9,600,985.30
Bay project 2024 .00 910.93 58 387.51 0 loans
Guangming
Yutang 21 October 2,658,680,000 1,792,278, 202,943,925. 1,995,222, 3,810,146.4 Bank
7 March 2022 3,810,146.41
Shangfu 2024 .00 782.42 14 707.56 1 loans
project
Yupinluansha
n (commercial
and residential 236,433,5 236,433,50
0.00 Others
construction 05.64 5.64
project of No.
A117-12 land)
Land of 6,648,404. 6,648,404.
Hongqi Town, Others
Haikou 13 13
Shenhui 37,256,04 37,287,764
31,716.38 Others
Garden 8.16 .54
Fuyuantai 12,754,33 16,102,390
3,348,052.49 Others
project 7.65 .14
Yangzhou
Shouxihu 2,529,110,000 863,966,3 431,687,658. 1,295,653,
31 August
Ecological 6 March 2023 Others
2026 .00 04.45 55 963.00
Health Valley
project
34,555,68 41,895,841
Others 7,340,160.32 Others
1.38 .70
17,716,710,00 10,778,95 236,433,50 1,419,346,17 11,174,583 370,900,834.1 132,597,32
Total -- -- 787,279,703.02 --
0.00 0,699.23 5.64 6.86 ,667.43 0 4.12
Disclose main items of “Developing properties” in the following format:
Unit: RMB
Of which:
Accumulated amount of
Time of Beginning Increase for the Decrease for the amount of capitalized
Project name Ending balance
completion balance current period current period interest interests for
capitalization the current
period
SZPRD- 1
Langqiao December 3,447,316.75 3,447,316.75 83,077,702.96
International 2012
SZPRD-Hupan 1 June
56,815,090.28 26,673,381.36 30,141,708.92
Yujing Phase I 2015
SZPRD-
12 January
Banshan Yujing 3,607,397.06 70,407.65 3,536,989.41 10,446,911.43
2022
Phase II
SZPRD-
Songhu 1 July 2017 24,200,327.47 1,153,387.44 23,046,940.03 27,205,315.95
Langyuan
1
SZPRD-Hupan
November 30,517,813.23 238,482.45 30,279,330.78 30,539,392.65
Yujing Phase II
2017
1
SZPRD-Golden
December 72,260,564.44 35,314,083.61 36,946,480.83
Collar’s Resort
2019
SZPRD- 15 May
0.00 787,279,703.02 782,328,176.19 4,951,526.83
Fuchang 2023
163
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Garden Phase
II (Fuhui
Huayuan)
International 1
Trade Center December 4,839,083.10 4,839,083.10 26,385,636.29
Plaza 1995
Huangyuyuan 1 June
790,140.58 790,140.58
A Area 2001
Podium
1
Building of
November 645,532.65 645,532.65
Fuchang
1999
Building
Other items 2,551,428.03 2,551,428.03
Total -- 199,674,693.59 787,279,703.02 845,777,918.70 141,176,477.91 177,654,959.28
Classification of “Developing properties with the collection of payments in installments”, “Renting developing properties” and
“Temporary Housing”:
Unit: RMB
Increase for the current Decrease for the current
Project name Beginning balance Ending balance
period period
(2) Falling Price Reserves of Inventory and Impairment Reserves for Contract Performance Costs
Disclosure of falling provision withdrawal of inventory in the following format:
Classification by nature:
Unit: RMB
Increased amount of the current Decreased amount for the
period current period
Beginning
Item Transferred- Ending balance Notes
balance
Withdrawal Others back or Others
charged-off
R&D expenses 6,648,404.13 212,175,631.84 218,824,035.97
Raw materials 1,040,612.30 37.12 125,426.38 915,223.04
Inventory
2,094,300.39 2,094,300.39
goods
Total 9,783,316.82 212,175,668.96 125,426.38 221,833,559.40
Classification by nature:
Unit: RMB
Increased amount of the current Decreased amount for the
period current period
Beginning
Project name Transferred- Ending balance Notes
balance
Withdrawal Others back or Others
charged-off
Land of
Hongqi Town, 6,648,404.13 6,648,404.13
Haikou
Humen Sea
187,141,155.12 187,141,155.12
Bay project
Yangzhou
Shouxihu
Ecological 25,034,476.72 25,034,476.72
Health Valley
project
Total 6,648,404.13 212,175,631.84 218,824,035.97
164
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
(3) Notes to the Ending Balance of Inventories Including Capitalized Borrowing Expense
Carry-over in
Project name Period-begin Current period Period-end
current period
SZPRD-Golden Collar’s Resort 341,681.06 77,414.17 264,266.89
Lanhu Shidai project 238,303,509.98 119,186,192.41 357,489,702.39
SZPRD-Langqiao International 2,971,986.54 2,971,986.54
SZPRD-Hupan Yujing Phase I 1,249,515.42 1,249,515.42
Humen Sea Bay project 9,600,985.30 9,600,985.30
Guangming Yutang Shangfu
3,810,146.41 3,810,146.41
project
Yangzhou Shouxihu Ecological
460,955.00 460,955.00
Health Valley project
Total 242,866,693.00 133,058,279.12 77,414.17 375,847,557.95
(4) Inventory Restrictions
Disclosing restricted inventory by project:
Unit: RMB
Project name Beginning balance Ending balance Reason for restriction
10. Held-for-sale Assets
Unit: RMB
Ending carrying Impairment Ending carrying Estimated Estimated
Item Fair value
amount provision amount disposal expense disposal time
Other notes:
11. Current Portion of Non-current Assets
Unit: RMB
Item Ending balance Beginning balance
(1) Investments in Debt Obligations Due within One Year
□Applicable Not applicable
(2) Other Investments in Debt Obligations Due within One Year
□Applicable Not applicable
12. Other Current Assets
Unit: RMB
Item Ending balance Beginning balance
Prepaid VAT 22,096,062.08 16,846,758.27
Deducted input tax 97,304,885.00 28,950,002.85
Prepaid income tax 4,608,593.92 1,436,395.15
Prepaid land VAT 862,126.84 16,438,505.72
165
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Prepaid urban construction tax 1,692,524.35 1,156,118.20
Prepaid education surcharge 1,208,945.98 825,798.74
Immediate rebate of receivable software
1,687.34 1,687.34
sales VAT
Total 127,774,825.51 65,655,266.27
Other notes:
13. Investments in Debt Obligations
(1) List of Investments in Debt Obligations
Unit: RMB
Ending balance Beginning balance
Item Impairment Impairment
Carrying amount Carrying value Carrying amount Carrying value
provision provision
Changes in the impairment provision for investments in debt obligations during the current period
Unit: RMB
Increase for the current Decrease for the current
Item Beginning balance Ending balance
period period
(2) Significant Investments in Debt Obligations at the Period-end
Unit: RMB
Ending balance Beginning balance
Item Actual Actual
Coupon Maturity Overdue Coupon Maturity Overdue
Par value interest Par value interest
rate date principal rate date principal
rate rate
(3) Status of accrued depreciation reserves
Unit: RMB
First stage Second stage Third stage
Expected loss in the
Bad debt provision Expected loss in the Total
Expected credit loss in duration (credit
duration (credit
the next 12 months impairment not
impairment occurred)
occurred)
Balance of 1 January
2023 in the current
period
The basis for the division of each stage and the withdrawal proportion of bad debt provision
(4) Status of Investments in Debt Obligations Written-off in Current Period
Unit: RMB
Item Written-off amount
Of which the verification of significant investments in debt obligations
Notes to verification of investments in debt obligations:
Changes of carrying amount with significant amount changed of loss provision in the current period
166
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
□Applicable Not applicable
Other notes:
14. Other Investments in Debt Obligations
(1) List of Other Investments in Debt Obligations
Unit: RMB
Accumulated
Change in impairment
fair value Accumulated provision
Beginning Accrued Interest Ending
Item in the Cost changes in recognized in Notes
balance interest adjustment balance
reporting fair value other
period comprehensive
income
Changes in the impairment provision for other investments in debt obligations during the current period
Unit: RMB
Increase for the current Decrease for the current
Item Beginning balance Ending balance
period period
(2) Significant Other Investments in Debt Obligations at the Period-end
Unit: RMB
Ending balance Beginning balance
Item Actual Actual
Coupon Maturity Overdue Coupon Maturity Overdue
Par value interest Par value interest
rate date principal rate date principal
rate rate
(3) Status of accrued depreciation reserves
Unit: RMB
First stage Second stage Third stage
Expected loss in the
Bad debt provision Expected loss in the Total
Expected credit loss in duration (credit
duration (credit
the next 12 months impairment not
impairment occurred)
occurred)
Balance of 1 January
2023 in the current
period
The basis for the division of each stage and the withdrawal proportion of bad debt provision
(4) Status of Other Investments in Debt Obligations Written-off in Current Period
Unit: RMB
Item Written-off amount
Of which the verification of significant other investments in debt obligations
Notes to verification of other investments in debt obligations:
Changes of carrying amount with significant amount changed of loss provision in the current period
□Applicable Not applicable
167
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Other notes:
15. Other Equity Instrument Investment
Unit: RMB
Reason for
Accumulative
Gains Losses Accumulative assigning to
losses Dividend
recorded in recorded in gains recorded measure in fair
recorded in income
Project Ending Beginning other other in other value of which
other recognized
name balance balance comprehensive comprehensive comprehensive changes
comprehensive in current
income in the income in the income in the included other
income in the year
current period current period current period comprehensive
current period
income
Gintian Not for
Industry business
636,926.20 887,838.64 261,743.15 2,835,868.48
(Group) transaction
Co., Ltd. purposes
Total 636,926.20 887,838.64 261,743.15 2,835,868.48
There is derecognition in the current period
Unit: RMB
Accumulative gains transferred Accumulative losses transferred
Project name Reason for derecognition
in retained earnings in retained earnings
Non-trading equity instrument investment in the Current Period disclosed by items
Unit: RMB
Reason for
assigning to
Amount of other Reason for other
measure in fair
comprehensive comprehensive
Dividend income Accumulative Accumulative value of which
Project name income income
recognized gains losses changes included
transferred to transferred to
other
retained earnings retained earnings
comprehensive
income
Not for business
Gintian Industry
2,953,430.11 transaction
(Group) Co., Ltd.
purposes
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
amount provision amount provision
Financing
22,651,454.07 22,651,454.07
lease accounts
Of which:
unrealized
13,169,492.65 13,169,492.65
financing
income
Total 22,651,454.07 22,651,454.07
(2) Disclosure by Withdrawal Methods for Bad Debts
Unit: RMB
168
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Ending balance Beginning balance
Category Carrying amount Bad debt provision Carrying amount Bad debt provision
Carrying Carrying
Withdrawal value Withdrawal value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Of which:
Of which:
Withdrawal of bad debt provision by adopting the general mode of expected credit loss
Unit: RMB
First stage Second stage Third stage
Expected loss in the
Bad debt provision Expected loss in the Total
Expected credit loss in duration (credit
duration (credit
the next 12 months impairment not
impairment occurred)
occurred)
Balance of 1 January
2023 in the current
period
The basis for the division of each stage and the withdrawal proportion of bad debt provision
(3) Bad Debt Provision Withdrawal, Reversed or Recovered in the Current Period
Unit: RMB
Changes in the current period
Beginning
Category Reversed or Charged- Ending balance
balance Withdrawal Others
recovered off/Written-off
Of which the bad debt provision recovered or transferred-back with significant amount during the current period:
Unit: RMB
Basis and rationality of
Amount reversed or determining the original
Name of the entity Reason for reversal Way of recovery
recovered withdrawal proportion of
bad debt provision
Other notes:
(4) Status of Long-term Receivables Written-off in Current Period
Unit: RMB
Item Written-off amount
Of which the verification of significant long-term receivables:
Unit: RMB
Verification Whether occurred
Reason for
Name of the entity Nature Written-off amount procedures because of related-
verification
performed party transactions
Notes to the verification of long-term receivables:
17. Long-term Equity Investment
Unit: RMB
Beginning Beginning Increase/decrease for the current period Ending Ending
balance balance of Gains and Adjustment of Changes Cash bonus Withdrawal balance balance of
Investee Additional Reduced
(carrying depreciation losses other of other or profits of Others (Carrying depreciation
value) reserve investment investment value) reserve
recognized comprehensive equity announced impairment
169
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
under the income to issue provision
equity
method
I. Joint ventures
Shenzhen Real
Estate Jifa 44,730,585.2 48,065,818
3,335,233.21
Warehousing Co., 9 .50
Ltd.
Tian’an
International
Building Property 7,050,937.
7,037,952.31 12,985.03
Management 34
Company of
Shenzhen
51,768,537.6 55,116,755
Subtotal 3,348,218.24
0 .84
II. Associated enterprises
Shenzhen Wufang
Ceramics 18,983,614.1 18,983,614 18,983,614.1
Industrial Co., 4 .14 4
Ltd.
Shenzhen Kangfu
Health Products 165,000.00 165,000.00 165,000.00
Co., Ltd.
Shenzhen
Xinghao Imitation
756,670.68 756,670.68 756,670.68
Porcelain Co.,
Ltd.
Shenzhen Social
Welfare Company
326,693.24 326,693.24 326,693.24
Fuda Electronics
Factory
Shenzhen Fulong
Industry 1,684,350.
1,684,350.00 1,684,350.00
Development Co., 00
Ltd.
2,733,570.
Haonianhua Hotel 2,733,570.05 2,733,570.05
05
Shenzhen
Education Fund
500,000.00 500,000.00 500,000.00
Longhua
Investment
Shenzhen Kangle
Sports Club 540,060.00 540,060.00 540,060.00
Huangfa Branch
Dankeng Village
Plants of Fumin in 1,168,973.
1,168,973.20 1,168,973.20
Guanlan Town, 20
Shenzhen City
Shenzhen Bull
Entertainment 500,000.00 500,000.00 500,000.00
Co., Ltd.
Shenzhen Lianhua
Caitian Property 1,475,465.
1,475,465.91 1,475,465.91
Management Co., 91
Ltd.
Shenzhen
Yangyuan 1,030,000.
1,030,000.00 1,030,000.00
Industrial Co., 00
Ltd.
Jiakaifeng Co.,
Ltd. Bao’an 600,000.00 600,000.00 600,000.00
Company
Guiyuan Garage 350,000.00 350,000.00 350,000.00
Shenzhen
Wuweiben Roof
500,000.00 500,000.00 500,000.00
Greening Co.,
Ltd.
ShenzhenYuanpin
g Plastic Steel 240,000.00 240,000.00 240,000.00
Doors Co., Ltd.
ShenzhenYoufang
100,000.00 100,000.00 100,000.00
Printing Co., Ltd.
Shenzhen
Lusheng
Industrial 100,000.00 100,000.00 100,000.00
Development Co.,
Ltd.
CSCEC
Intelligent
28,012,899.7 28,940,994
Parking 991,215.00 63,120.00
1 .71
Technology Co.,
Ltd.
59,767,296.9 60,695,391 31,754,397.2
Subtotal 991,215.00 63,120.00
3 .93 2
111,535,834. 115,812,14 31,754,397.2
Total 4,339,433.24 63,120.00
53 7.77 2
The recoverable amount is determined based on the net amount of the fair value minus disposal costs
170
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
□Applicable Not applicable
The recoverable amount is determined by the present value of the forecasted future cash flow.
□Applicable Not applicable
The reason for the discrepancy between the foregoing information and the information used in the impairment tests in prior years or
external information
The reason for the discrepancy between the information used in the Company's impairment tests in prior years and the actual
situation of those years
Other notes:
18. Other Non-current Financial Assets
Unit: RMB
Item Ending balance Beginning balance
Other notes:
19. Investment Property
(1) Investment Property Adopting the Cost Measurement Mode
Applicable □Not applicable
Unit: RMB
Item Houses and buildings Land use right Construction in progress Total
I. Original carrying value
1. Beginning balance 861,702,509.37 14,495,902.20 37,192,716.83 913,391,128.40
2. Increased amount for
20,538,975.46 20,538,975.46
the current period
(1) Outsourcing
(2) Transfer from
inventory/fixed
20,538,975.46 20,538,975.46
assets/construction in
progress
(3) Business
combination increase
3. Decreased amount for
-178,092.04 -178,092.04
the current period
(1) Disposal
(2) Other transfer
(3) Exchange adjustment -178,092.04 -178,092.04
4. Ending balance 882,419,576.87 14,495,902.20 37,192,716.83 934,108,195.90
II. Accumulative
depreciation and
accumulative
amortization
1. Beginning balance 472,271,039.79 13,360,585.89 21,996,763.54 507,628,389.22
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
2. Increased amount for
30,494,065.85 952,969.32 8,052,783.60 39,499,818.77
the current period
(1) Withdrawal or
27,649,799.76 952,969.32 8,052,783.60 36,655,552.68
amortization
(2) Others 2,844,266.09 2,844,266.09
3. Decreased amount for
-169,187.44 -169,187.44
the current period
(1) Disposal
(2) Other transfer
(3) Exchange adjustment -169,187.44 -169,187.44
4. Ending balance 502,934,293.08 14,313,555.21 30,049,547.14 547,297,395.43
III. Depreciation
reserves
1. Beginning balance
2. Increased amount for
the current period
(1) Withdrawal
3. Decreased amount for
the current period
(1) Disposal
(2) Other transfer
4. Ending balance
IV. Carrying value
1. Ending carrying value 379,485,283.79 182,346.99 7,143,169.69 386,810,800.47
2. Beginning carrying
389,431,469.58 1,135,316.31 15,195,953.29 405,762,739.18
value
The recoverable amount is determined based on the net amount of the fair value minus disposal costs
□Applicable Not applicable
The recoverable amount is determined by the present value of the forecasted future cash flow.
□Applicable Not applicable
The reason for the discrepancy between the foregoing information and the information used in the impairment tests in prior years or
external information
The reason for the discrepancy between the information used in the Company's impairment tests in prior years and the actual
situation of those years
Other notes:
(2) Investment Property Adopting the Fair Value Measurement Mode
□Applicable Not applicable
(3) Projects Converted to Investment Properties and Measured at Fair Value
Unit: RMB
Item Accounting item Amount Reason for Approval Impact on gain Impact on other
172
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
before conversion procedures and loss comprehensive
conversion income
(4) Investment Property Failed to Accomplish Certification of Property
Unit: RMB
Item Carrying value Reason
The house is used for property management, once occupied by the
507 Unit, Block No. 6, Maguling 22,679.21 third party, a property management company, now has been
recovered, but hasn’t handled the warrant yet.
Obtained after the success in the last instance in 2017, relevant
Meilin land [Note 1]
certifications of property are in the procedure
Total 22,679.21
Other notes:
Note: As at 31 December 2023, 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.
20. Fixed Assets
Unit: RMB
Item Ending balance Beginning balance
Fixed assets 66,436,408.90 82,745,172.12
Liquidation of fixed assets
Total 66,436,408.90 82,745,172.12
(1) List of Fixed Assets
Unit: RMB
Item Total
I. Original
carrying value:
1. Beginning
129,859,285.29 6,457,738.92 19,461,561.97 37,715,645.88 57,075,135.08 250,569,367.14
balance
2. Increased
amount for the 6,600.00 631,228.99 22,350.00 4,534,125.03 5,194,304.02
current period
(1) Purchase 6,600.00 631,228.99 22,350.00 4,534,125.03 5,194,304.02
(2) Transfer from
construction in
progress
(3) Business
combination
increase
3. Decreased
amount for the 5,432,051.73 155,270.00 741,446.82 3,143,412.94 9,472,181.49
current period
(1) Disposal or
155,270.00 741,446.82 3,143,412.94 4,040,129.76
scrap
(2) Exchange
-82,418.03 -82,418.03
adjustment
Others 5,514,469.76 5,514,469.76
4. Ending
124,427,233.56 6,309,068.92 19,351,344.14 37,737,995.88 58,465,847.17 246,291,489.67
balance
II. Accumulative
depreciation
1. Beginning
95,882,680.45 2,648,956.94 13,790,571.17 18,649,255.82 36,777,013.48 167,748,477.86
balance
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
2. Increased
amount for the 2,091,157.50 479,295.76 1,641,080.73 7,481,877.56 6,932,155.58 18,625,567.13
current period
(1) Withdrawal 2,091,157.50 479,295.76 1,641,080.73 7,481,877.56 6,932,155.58 18,625,567.13
3. Decreased
amount for the 2,768,468.99 154,765.10 680,236.38 2,991,210.91 6,594,681.38
current period
(1) Disposal or
154,765.10 680,236.38 2,991,210.91 3,826,212.39
scrap
(2) Exchange
-75,797.10 -75,797.10
adjustment
Others 2,844,266.09 2,844,266.09
4. Ending
95,205,368.96 2,973,487.60 14,751,415.52 26,131,133.38 40,717,958.15 179,779,363.61
balance
III. Depreciation
reserves
1. Beginning
balance
2. Increased
amount for the
current period
(1) Withdrawal
3. Decreased
amount for the
current period
(1) Disposal or
scrap
4. Ending
balance
IV. Carrying
value
1. Ending
29,221,864.60 3,335,581.32 4,599,928.62 11,606,862.50 17,672,171.86 66,436,408.90
carrying value
2. Beginning
33,976,604.84 3,808,781.98 5,670,990.80 19,066,390.06 20,222,404.44 82,745,172.12
carrying value
(2) List of Temporarily Idle Fixed Assets
Unit: RMB
Original carrying Accumulated Impairment
Item Carrying value Notes
value depreciation provision
(3) Fixed Assets Leased out by Operation Lease
Unit: RMB
Item Ending carrying amount
(4) Fixed Assets Failed to Accomplish Certification of Property
Unit: RMB
Item Carrying value Reason
Room 406, 2 units, Hulunbuir Guangxia Property rights disputes before, now have won a lawsuit with
2,191,229.86
Digital Building certification of the property being processed.
The office building will be removed due to the project adjustment
and a high-rise office building will be established nearby the
Room 401, 402, Sanxiang Business
575,652.74 present address. The existing property shall be replaced after the
Building Office Building
completion of the new office building. Thus, the certification of
the property is failed to transact.
Total 2,766,882.60
174
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Other notes:
(5) Impairment Test of Fixed Assets
□Applicable Not applicable
(6) Proceeds from Disposal of Fixed Assets
Unit: RMB
Item Ending balance Beginning balance
Other notes:
21. Construction in Progress
Unit: RMB
Item Ending balance Beginning balance
(1) List of Construction in Progress
Unit: RMB
Ending balance Beginning balance
Item Impairment Impairment
Carrying amount Carrying value Carrying amount Carrying value
provision provision
(2) Changes in Significant Construction in Progress during the Current Period
Unit: RMB
Proportion Of which:
Other
Increased of amount of Capitalization
decreased Accumulated
amount Transferred accumulated capitalized rate of
Project Beginning amount Ending Job amount of Capital
Budget of the in fixed investment interests interests for
name balance for the balance schedule interest resources
current assets in for the the current
current capitalization
period constructions current period
period
to budget period
(3) List of the Withdrawal of the Depreciation Reserves for Construction in Progress
Unit: RMB
Increase for the Decrease for the Reason for
Item Beginning balance Ending balance
current period current period withdrawal
Other notes:
(4) Impairment Test of Construction in Progress
□Applicable Not applicable
(5) Engineering Materials
Unit: RMB
Ending balance Beginning balance
Item Impairment Impairment
Carrying amount Carrying value Carrying amount Carrying value
provision provision
Other notes:
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
22. Right-of-use Assets
(1) List of Right-of-use Assets
Unit: RMB
Item Total
I. Original carrying value
1. Beginning balance 96,978,273.81 96,978,273.81
2. Increased amount for the current period 34,372,695.47 34,372,695.47
(1) New Leases 34,372,695.47 34,372,695.47
3. Decreased amount for the current period 75,290,063.42 75,290,063.42
(1) Terminated Leases 75,290,063.42 75,290,063.42
4. Ending balance 56,060,905.86 56,060,905.86
II. Accumulative depreciation
1. Beginning balance 26,809,858.16 26,809,858.16
2. Increased amount for the current period 18,139,758.01 18,139,758.01
(1) Withdrawal 18,139,758.01 18,139,758.01
3. Decreased amount for the current period 12,405,506.53 12,405,506.53
(1) Disposal
(2) Terminated Leases 12,405,506.53 12,405,506.53
4. Ending balance 32,544,109.64 32,544,109.64
III. Depreciation reserves
1. Beginning balance
2. Increased amount for the current period
(1) Withdrawal
3. Decreased amount for the current period
(1) Disposal
4. Ending balance
IV. Carrying value
1. Ending carrying value 23,516,796.22 23,516,796.22
2. Beginning carrying value 70,168,415.65 70,168,415.65
(2) Impairment Test of Right-of-use Assets
Applicable □Not applicable
The recoverable amount is determined based on the net amount of the fair value minus disposal costs
□Applicable Not applicable
The recoverable amount is determined by the present value of the forecasted future cash flow.
□Applicable Not applicable
The reason for the discrepancy between the foregoing information and the information used in the impairment tests in prior years or
external information
The reason for the discrepancy between the information used in the Company's impairment tests in prior years and the actual
176
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
situation of those years
Other notes:
23. 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
3,060,312.13 3,060,312.13
balance
2. Increased amount
for the current
period
(1) Purchase
(2) Internal R&D
(3) Business
combination
increase
3. Decreased
amount for the
current period
(1) Disposal
4. Ending balance 3,060,312.13 3,060,312.13
II. Accumulated
amortization
1. Beginning
1,790,929.22 1,790,929.22
balance
2. Increased amount
for the current 379,581.77 379,581.77
period
(1) Withdrawal 379,581.77 379,581.77
3. Decreased
amount for the
current period
(1) Disposal
4. Ending balance 2,170,510.99 2,170,510.99
III. Depreciation
reserves
1. Beginning
balance
2. Increased amount
for the current
period
(1) Withdrawal
3. Decreased
amount for the
current period
(1) Disposal
177
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
4. Ending balance
IV. Carrying value
1. Ending carrying
889,801.14 889,801.14
value
2. Beginning
1,269,382.91 1,269,382.91
carrying value
The proportion of intangible assets formed from the internal R&D of the Company at the Period-end to the ending balance of
intangible assets
(2) Land Use Right Failed to Accomplish Certification of Property
Unit: RMB
Item Carrying value Reason
Other notes:
(3) Impairment Test of Intangible Assets
□Applicable Not applicable
24. Goodwill
(1) Original Carrying Value of Goodwill
Unit: RMB
Name of the Increase for the current period Decrease for the current period
invested units or Beginning Formed by Ending balance
events generating balance business Disposal
goodwill combination
Shenzhen
Facility
Management
9,446,847.38 9,446,847.38
Community
Technology Co.,
Ltd.
Total 9,446,847.38 9,446,847.38
(2) Depreciation Reserves of Goodwill
Unit: RMB
Name of the Increase for the current period Decrease for the current period
invested units or Beginning
Ending balance
events generating balance Withdrawal Disposal
goodwill
Total
(3) Information on the Assets Groups or Combination of Assets Groups which Goodwill Belongs to
Composition and basis of the
Operating segment to which it Whether it is consistent with
Name asset group or combination of
belongs and basis that of the prior years
asset groups to which it belongs
Groups or combinations of
groups of assets that are
capable of generating cash
Shenzhen Facility Management
flows independently, taking into Property management,
Community Technology Co., Yes
Ltd. account the ability to benefit supporting services
from the synergies of the
business combination and the
way in which management
178
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
manages or monitors the
production and operating
activities.
Changes in the assets group or combination of assets groups
Objective facts leading to the
Name Composition before the change Composition after the change
change and their basis
Other notes:
(4) Specific Method of Determining the Recoverable Amount
The recoverable amount is determined based on the net amount of the fair value minus disposal costs
□Applicable Not applicable
The recoverable amount is determined by the present value of the forecasted future cash flow.
Applicable □Not applicable
Unit: RMB
Basis of
Key Key determining
Number of
Recoverable Impairment parameters of parameters of the key
Item Carrying value years of the
amount amount the forecast the stable parameters of
forecast period
period period the stable
period
Shenzhen
Revenue
Facility
growth rate of Determined
Management
61,791,091.57 62,756,889.73 5 1%-8%, No growth based on
Community
discount rate prudence
Technology
of 12.53%
Co., Ltd.
Total 61,791,091.57 62,756,889.73
The reason for the discrepancy between the foregoing information and the information used in the impairment tests in prior years or
external information
The reason for the discrepancy between the information used in the Company's impairment tests in prior years and the actual
situation of those years
(5) Completion of Commitments to Results and Corresponding Goodwill Impairment
When goodwill is formed, there is a commitment to the results and the reporting period or the period preceding the reporting period
is within the commitment period
Applicable □Not applicable
Unit: RMB
Amount of goodwill
Completion of the commitment to results
impairment
Item Current period Previous period
Current Previous
Committed Actual Completion Committed Actual Completion period period
results results rate results results rate
Other notes:
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. Pursuant to the equity acquisition
179
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
cooperation framework agreement entered into between Wuhe Company and the original shareholders, FMC and its original
shareholders undertook that the FMC's operating revenue growth ratio or net profit for the years from 2021 to 2023 would reach
the target value agreed upon in the agreement, and that Wuhe Company would conduct an assessment of its operating performance
for a period of three years. As at the Reporting Date, the performance assessment has not yet been completed, and therefore it is
not possible to assess its fulfillment for the time being.
Based on the results of the goodwill impairment test, the recoverable amount is higher than its carrying amount and no provision
for goodwill impairment is required.
25. Long-term Prepaid Expense
Unit: RMB
Amortization
Increased amount of Other decreased
Item Beginning balance amount of the Ending balance
the current period amount
current period
Decoration fee 21,980,602.46 7,834,029.87 7,726,470.46 577,763.99 21,510,397.88
Total 21,980,602.46 7,834,029.87 7,726,470.46 577,763.99 21,510,397.88
Other notes:
26. 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
differences assets differences assets
Provision for impairment
95,315,243.86 21,090,356.76 72,321,489.09 15,066,804.41
of assets
Internal unrealized profit 437,266,319.66 109,316,579.92 439,263,809.16 109,815,952.29
Deductible losses 607,016,948.61 151,737,271.44 1,159,867,308.26 288,683,459.58
Accrued land VAT 3,911,198,870.69 977,799,717.67 3,838,271,429.24 959,567,857.31
Estimated profit
calculated at pre-sale
32,620,985.74 8,155,246.44 35,766,814.24 8,941,703.56
revenue of property
enterprises
Other accrued expenses 7,694,020.20 1,923,505.05 4,512,525.55 974,808.89
Lease Liabilities 26,502,156.29 6,417,709.55 100,176,641.92 24,500,761.16
Total 5,117,614,545.05 1,276,440,386.83 5,650,180,017.46 1,407,551,347.20
(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 704,413.18 176,103.29 967,914.16 241,978.54
than the tax basis
Right-of-use Assets 23,516,796.22 5,686,176.41 70,168,415.65 22,737,325.56
180
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Total 24,221,209.40 5,862,279.70 71,136,329.81 22,979,304.10
(3) Deferred Income Tax Assets or Liabilities Had Been Off-set Listed in Net Amount
Unit: RMB
Beginning off-set
Ending off-set amount of Ending balance of Beginning balance of
amount of deferred
Item 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
1,276,440,386.83 1,407,551,347.20
assets
Deferred income tax
5,862,279.70 22,979,304.10
liabilities
(4) List of Unrecognized Deferred Income Tax Assets
Unit: RMB
Item Ending balance Beginning balance
Deductible temporary differences 261,260,204.35 52,448,071.36
Deductible losses 254,378,951.24 508,734,563.66
Total 515,639,155.59 561,182,635.02
(5) Deductible Losses of Unrecognized Deferred Income Tax Assets will Due in the Following Years
Unit: RMB
Year Ending amount Beginning amount Notes
2023 265,603,820.64
2024 124,895,242.05 124,895,242.05
2025 22,711,013.85 22,711,013.85
2026 14,238,807.00 14,238,807.00
2027 81,285,680.12 81,285,680.12
2028 11,248,208.22
Total 254,378,951.24 508,734,563.66
Other notes:
27. Other Non-current Assets
Unit: RMB
Ending balance Beginning balance
Item Impairment Impairment
Carrying amount Carrying value Carrying amount Carrying value
provision provision
Prepayment for
purchase of fixed
assets,
870,062.16 870,062.16 115,779.31 115,779.31
investment
properties and
intangible assets
Others [note 1] 2,635,093.77 2,635,093.77 2,635,093.77 2,635,093.77
Total 3,505,155.93 3,505,155.93 2,750,873.08 2,750,873.08
Other notes:
181
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Note 1: The amount is mainly the registered asset of investment property, as the assets relate to the subsequent
pending transfer of relocated properties for the shanty town renovation of Chuanbujie, and the term exceeds one
year.
28. Assets with Restricted Ownership or Right of Use
Unit: RMB
Period-end Period-beginning
Item Carrying Carrying Type of Status of Carrying Type of Status of
Carrying value
amount value restriction restriction amount restriction restriction
Margin,
security
deposit,
interest on
Monetary Note 1 -
15,659,341.60 15,659,341.60 Frozen 7,835,036.35 7,835,036.35 Frozen time
capital Note 10
deposit, and
judicially
frozen
funds
Land use
right of
Fumin New
542,507,314.43 542,507,314.43 Mortgaged
Village,
Futian
District
Total 15,659,341.60 15,659,341.60 550,342,350.78 550,342,350.78
Other notes:
[Note 1]: In terms of monetary assets with restricted right to use at the period-end, there was RMB2,200,000.00 as the banker's letter
of margin for Shenzhen Shenfubao Property Development Co., Ltd., a subsidiary of the Company.
[Note 2]: In terms of monetary assets with restricted right to use at the period-end, there was RMB3,342,374.71 in the subsidiary
company Shenzhen Facility Management Community Technology Co., Ltd. blocked by the court due to pre-litigation preservation
for contract disputes.
[Note 3]: In terms of monetary assets with restricted right to use at the period-end, there was a loan deposit of RMB1,133,604.61
provided as mortgage loan guarantees for commercial housing purchasers and paid by the Company as a real estate developer
according to real estate business practices.
[Note 4]: In terms of monetary assets with restricted right to use at the period-end, there was RMB8,644,166.67 of interest on
unexpired term deposits accrued at the period-end.
[Note 5]: In terms of monetary assets with restricted right to use at the period-end, there was RMB90,000.00 of blocked fund in a
dispute over a house purchase and sales contract for Shenzhen Property Group Xuzhou Dapeng Real Estate Development Co., Ltd., a
subsidiary of the Company.
[Note 6]: In terms of monetary assets with restricted right to use at the period-end, there was RMB129,021.18 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 7]: In terms of monetary assets with restricted right to use at the period-end, there was RMB99,103.58 in the account of the
subsidiary company Shenzhen Yufa Industrial Co., Ltd. Its bank account was frozen because its retained shareholder information is
inconsistent with the shareholder information retained during business registration in the State Administration for Market Regulation.
[Note 8]: In terms of monetary assets with restricted right to use at the period-end, there was a deposit for POS of RMB1,500.00 in
the Shandong Shenguomao Real Estate Management Co., Ltd.
[Note 9]: In terms of monetary assets with restricted right to use at the period-end, there was a deposit for POS of RMB1,000.00 in
the Shenzhen Shenfubao Property Development Co., Ltd, a subsidiary of the Company
[Note 10]: In terms of monetary assets with restricted right to use at the period-end, there was RMB18,570.85 of blocked fund in a
labour disputes arbitration case for Shenzhen Free Trade Zone Security Service Co., Ltd., a subsidiary of the Company.
182
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
29. Short-term Borrowings
(1) Category of Short-term Borrowings
Unit: RMB
Item Ending balance Beginning balance
Credit loan 230,915,000.00
Total 230,915,000.00
Notes of the category for short-term loans:
The credit borrowings (1) at the period-end were used for the daily operation of Shenzhen International Trade Center Property
Management Co., Ltd., a subsidiary of the Company, with the duration from 28 September 2023 to 26 March 2024.
The credit borrowings (2) at the period-end were used for the daily operation of Shenzhen ITC Technology Park Service Co., Ltd., a
subsidiary of the Company, with the duration from 1 December 2023 to 29 November 2024.
The credit borrowings (3) at the period-end were used for the daily operation of Shenzhen International Trade Center Property
Management Co., Ltd., a subsidiary of the Company, with the duration from 4 December 2023 to 4 June 2024.
(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:
30. Trading Financial Liabilities
Unit: RMB
Item Ending balance Beginning balance
Of which:
Of which:
Other notes:
31. Derivative Financial Liabilities
Unit: RMB
Item Ending balance Beginning balance
Other notes:
32. Notes Payable
Unit: RMB
Category Ending balance Beginning balance
The total amount of notes payable that are due but unpaid amounted to RMBXXX at the end of the current period. And the reasons
why they are due but not paid are XXX
183
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
33. Accounts Payable
(1) List of Accounts Payable
Unit: RMB
Item Ending balance Beginning balance
Engineering construction expense payable 540,851,975.20 484,123,042.01
Estimated payables 40,980,345.76 32,863,907.25
Others 81,036,738.63 91,296,439.26
Total 662,869,059.59 608,283,388.52
(2) Significant Accounts Payable Aging over One Year or Overdue
Unit: RMB
Item Ending balance Unpaid/Un-carry-over reason
Shenzhen Municipal Bureau of Planning
25,000,000.00 Historical problems
and Land
China Construction Fourth Engineering
12,017,672.93 Unsettled
Division Corp., Ltd.
Shenzhen Qianhai Advanced Information
8,126,060.00 Unsettled
Service Co., Ltd.
Total 45,143,732.93
Other notes:
34. Other Payables
Unit: RMB
Item Ending balance Beginning balance
Dividends payable 12,202,676.04 12,202,676.04
Other payables 1,205,100,618.21 1,502,883,156.41
Total 1,217,303,294.25 1,515,085,832.45
(1) Interest Payable
Unit: RMB
Item Ending balance Beginning balance
List of the significant overdue unpaid interest:
Unit: RMB
Entity Overdue amount Overdue reason
Other notes:
(2) Dividends Payable
Unit: RMB
Item Ending balance Beginning balance
Ordinary stock dividends 12,202,676.04 12,202,676.04
Total 12,202,676.04 12,202,676.04
184
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Other notes: including significant dividends payable unpaid for over one year, the unpaid reason shall be disclosed:
Item Amount unpaid Reason
Company restructured without clearing
Shenzhen Greening Department 10,869,036.68
payment object
Company restructured without clearing
Labor Union of Shenzhen Greening Department 1,300,000.00
payment object
Without access to its account and the final
Others 33,639.36
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 290,979,176.07 316,108,932.91
Margin 11,806,030.93 13,585,641.99
Collection on behalf 4,832,329.12 3,596,458.33
Intercourse funds 611,443,690.41 855,267,729.70
Accrued expenses 200,129,074.12 224,646,116.70
Payment on behalf 17,030,579.72 19,052,869.33
Others 68,879,737.84 70,625,407.45
Total 1,205,100,618.21 1,502,883,156.41
2) Significant Other Accounts Payable Aging over One Year or Overdue
Unit: RMB
Item Ending balance Unpaid/Un-carry-over reason
Intercourse funds with related parties
Yangzhou Lvfa Real Estate Co., Ltd. 369,623,672.79
outside the combination
Shenzhen Bay Technology Development
143,003,641.12 Unsettled
Co., Ltd.
Shenzhen Real Estate Jifa Warehousing Intercourse fund without specific payment
42,296,665.14
Co., Ltd. term
Shenzhen Toutiao Technology Co., Ltd. 12,340,689.03 Lease term not expired
Shenzhen Qianhai Micro Public Bank Co.,
6,698,953.04 Lease term not expired
Ltd.
Total 573,963,621.12
3) Top 5 of the Ending Balance of the Other Payables Collected according to the Counterparty
Other notes:
35. Advances from Customers
(1) List of Advances from Customers
Unit: RMB
Item Ending balance Beginning balance
Rental 2,265,223.56 2,260,847.31
185
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Total 2,265,223.56 2,260,847.31
(2) Significant Advances from Customers Aging over One Year or Overdue
Unit: RMB
Item Ending balance Unpaid/Un-carry-over reason
Unit: RMB
Item Change in amount Reason(s)
36. Contract Liabilities
Unit: RMB
Item Ending balance Beginning balance
House payment in advance 747,372,309.30 857,317,217.99
Property fee in advance 30,554,843.87 15,740,950.87
Other payments in advance 42,497,800.25 47,769,871.95
Total 820,424,953.42 920,828,040.81
Significant contract liabilities aging over one year
Unit: RMB
Item Ending balance Unpaid/Un-carry-over reason
Significant changes in the amount of carrying value and the reason in the Reporting Period
Unit: RMB
Item Change in amount Reason(s)
37. Payroll Payable
(1) List of Payroll Payable
Unit: RMB
Increase for the current Decrease for the current
Item Beginning balance Ending balance
period period
I. Short-term salary 234,726,107.97 874,016,347.55 890,873,383.85 217,869,071.67
II. Post-employment
benefit-defined 1,650,684.05 77,418,329.18 78,330,132.15 738,881.08
contribution plans
III. Termination benefits 2,749,600.00 280,143.53 2,851,584.50 178,159.03
Total 239,126,392.02 951,714,820.26 972,055,100.50 218,786,111.78
(2) List of Short-term Salary
Unit: RMB
Increase for the current Decrease for the current
Item Beginning balance Ending balance
period period
1. Salary, bonus,
216,273,079.86 762,337,469.94 775,409,080.68 203,201,469.12
allowance, subsidy
2. Employee welfare 1,408,479.54 8,017,681.72 8,376,723.46 1,049,437.80
3. Social insurance 71,070.35 29,533,078.01 29,587,983.54 16,164.82
Of which: Medical
60,059.54 26,315,323.45 26,361,499.22 13,883.77
insurance premiums
186
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Work-related injury
1,263.70 1,258,003.44 1,259,251.18 15.96
insurance premiums
Maternity insurance 2,154.62 1,959,751.12 1,959,640.65 2,265.09
Other commercial
7,592.49 7,592.49
insurances
4. Housing fund 1,279,643.31 28,547,576.64 28,661,368.07 1,165,851.88
5. Labor union budget
and employee education 11,352,966.60 16,509,911.48 19,370,797.18 8,492,080.90
budget
8. Non-monetary
4,340,868.31 29,070,629.76 29,467,430.92 3,944,067.15
benefits
Total 234,726,107.97 874,016,347.55 890,873,383.85 217,869,071.67
(3) List of Defined Contribution Plans
Unit: RMB
Increase for the current Decrease for the current
Item Beginning balance Ending balance
period period
1. Basic pension
145,676.75 59,806,897.45 59,931,532.14 21,042.06
insurance
2. Unemployment
4,125.03 1,544,057.60 1,545,466.23 2,716.40
insurance premiums
3. Supplementary
1,500,882.27 16,067,374.13 16,853,133.78 715,122.62
pension payment
Total 1,650,684.05 77,418,329.18 78,330,132.15 738,881.08
Other notes:
38. Taxes Payable
Unit: RMB
Item Ending balance Beginning balance
VAT 17,768,402.21 15,392,042.91
Enterprise income tax 91,035,828.65 57,096,046.69
Personal income tax 3,681,965.62 3,141,049.35
Urban maintenance and construction tax 981,394.80 1,464,551.01
Land appreciation tax 3,911,198,870.69 3,838,271,429.24
Land use tax 180,900.74 153,626.98
Property tax 539,730.69 600,966.66
Educational surcharge 644,625.80 707,668.15
Local educational fee 322,573.66 383,745.82
Others 603,055.08 67,220.00
Total 4,026,957,347.94 3,917,278,346.81
Other notes:
39. Held-for-sale Liabilities
Unit: RMB
Item Ending balance Beginning balance
Other notes:
187
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
40. Current Portion of Non-current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Current portion of long-term borrowings 3,075,993,789.05 196,645,408.45
Current portion of long-term payables 400,000.00
Lease obligation matured within 1 Year 15,931,064.02 22,213,358.37
Total 3,092,324,853.07 218,858,766.82
Other notes:
41. Other Current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Tax to be charged off 68,373,661.13 83,991,786.83
Total 68,373,661.13 83,991,786.83
Increase/decrease of the short-term bonds payable:
Unit: RMB
Issued Interest Amortization Repaid
Par Coupon Issue Bond Issue Beginning in the accrued of premium in the Ending Default
Name
value rate date duration amount balance current at par and current balance or not
period value depreciation period
Total
Other notes:
42. Long-term Borrowings
(1) Category of Long-term Borrowings
Unit: RMB
Item Ending balance Beginning balance
Pledged loans 373,646,731.07 3,156,782,344.00
Mortgage loans 625,842,543.40
Credit loan 400,400,000.00 462,000,000.00
Total 1,399,889,274.47 3,618,782,344.00
Note to the category of long-term borrowings:
The pledge borrowings at the period-end (1) were used to acquire 100% of five property management enterprises. They are Shenzhen
Property Management Co., Ltd., Shenzhen Foreign Trade Property Management Co., Ltd., Shenzhen Shenfubao Property
Development Co., Ltd., Shenzhen Shenfubao Hydropower Municipal Service Co., Ltd. and Shenzhen Free Trade Zone Security
Service Co., Ltd. by the Company's subsidiary Shenzhen International Trade Center Property Management Co., Ltd. with the
duration from 18 May 2022 to 26 April 2027. And the 100% equity of these five enterprises held by Shenzhen International Trade
Center Property Management Co., Ltd.
188
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
The pledged loans (2) at the period-end were used to develop the Humen Sea Bay Garden project of Dongguan Wuhe Real Estate Co.,
Ltd., a subsidiary of the Company, with the duration from 30 March 2023 to 5 August 2027. All accounts receivable of Dongguan
Wuhe Real Estate Co., Ltd. in next five years was pledged.
The mortgage loans (1) at the period-end were used to develop the Guangming Yutang Shangfu project of Shenzhen Guangming
Wuhe Real Estate Co., Ltd., a subsidiary of the Company, with the duration from 27 July 2023 to 24 May 2028. The land use right of
Guangming Yutang Shangfu project held by Shenzhen Guangming Wuhe Real Estate Co., Ltd. was pledged.
The mortgage loans (2) at the period-end were used to develop the Humen Sea Bay Garden project of Dongguan Wuhe Real Estate
Co., Ltd., a subsidiary of the Company, with the duration from 5 August 2022 to 5 August 2027. The land use right of Humen Sea
Bay Garden project held by Dongguan Wuhe Real Estate Co., Ltd. was pledged.
The mortgage loans (3) at the period-end were used to develop the Lanhushidai project of Shenzhen Rongyao Real Estate
Development Co., Ltd., a subsidiary of the Company (hereinafter referred to as “Rongyao Real Estate”) with the duration from 30
March 2023 to 30 March 2026.The land use right of Lanhushidai project held by Rongyao Real Estate was pledged and the Company
provided joint and several liability guarantee.
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.
Other notes, including interest rate range:
43. 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
Issued Interest Amortization Repaid
Par Coupon Issue Bond Issue Beginning in the accrued of premium in the Ending Default
Name
value rate date duration amount balance current at par and current balance or not
period value depreciation period
Total - -
(3) Notes to Convertible Corporate Bonds
(4) Notes to Other Financial Instruments Classified as Financial Liabilities
Basic information about other outstanding financial instruments such as preferred shares and perpetual bonds at the period-end
Changes of outstanding financial instruments such as preferred shares and perpetual bonds at the period-end
Unit: RMB
Increase for the current Decrease for the current
Outstanding Period-beginning Period-end
period period
financial
Carrying Carrying Carrying Carrying
instruments Number Number Number Number
value value value value
Notes to basis for the classification of other financial instruments as financial liabilities
Other notes:
189
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
44. Lease Liabilities
Unit: RMB
Item Ending balance Beginning balance
Lease payments 34,767,450.58 119,208,080.55
Unrecognized financing expense -8,265,294.29 -19,031,438.63
Less: Lease obligation matured within 1
-15,931,064.02 -22,213,358.37
Year
Total 10,571,092.27 77,963,283.55
Other notes:
45. Long-term Payables
Unit: RMB
Item Ending balance Beginning balance
Long-term accounts payable 400,105,655.56
Total 400,105,655.56
(1) Long-term Payables Listed by Nature
Unit: RMB
Item Ending balance Beginning balance
Sale and leaseback financing 400,105,655.56 0.00
Other notes:
The long-term payables at the period-end were the sale and leaseback financing between the Company and Maxwealth Financial
Leasing Co., Ltd. with the lease term from 22 December 2023 to 22 December 2027.
(2) Specific Payables
Unit: RMB
Increase for the Decrease for the Reason for
Item Beginning balance Ending balance
current period current period formation
Other notes:
46. Ending balance
Reason for formation
Unit: RMB
Item Ending balance Beginning balance
(2) Changes in Defined Benefit Plans
Obligation present value of defined benefit plans:
Unit: RMB
Item Amount for the current period Amount for the previous period
Plan assets:
Unit: RMB
Item Amount for the current period Amount for the previous period
190
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Net liabilities (net assets) of defined benefit plans:
Unit: RMB
Item Amount for the current period Amount for 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:
47. Provisions
Unit: RMB
Item Ending balance Beginning balance Reason for formation
Lawsuit between FMC and
Pending litigation 650,000.00 766,612.52
Basepoint
Total 650,000.00 766,612.52
Other notes, including notes to related significant assumptions and evaluation of significant provisions:
Refer to Note XVI-2 for details.
48. Deferred Income
Unit: RMB
Increase for the Decrease for the Reason for
Item Beginning balance Ending balance
current period current period formation
Other notes:
49. Other Non-current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Utility specific fund 549,961.59 634,414.79
Housing principle fund 15,997,716.45 15,105,690.42
House warming deposit 6,335,914.04 7,058,030.03
Electric Equipment Maintenance fund 4,019,415.44 4,019,415.44
Deputed maintenance fund 52,002,751.04 53,798,172.96
Follow-up investment of employees for
40,000,000.00 40,000,000.00
Lanhu Shidai project
Others 8,133,466.98 7,393,196.15
Total 127,039,225.54 128,008,919.79
Other notes:
50. Share Capital
Unit: RMB
191
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Increase/decrease (+/-)
Beginning
New shares Bonus issue Ending balance
balance Bonus shares Others Subtotal
issued from profit
Total shares 595,979,092.00 595,979,092.00
Other notes:
51. 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
Increase for the current Decrease for the current
Outstanding Period-beginning Period-end
period period
financial
Carrying Carrying Carrying Carrying
instruments Number Number Number Number
value value value value
Changes of other equity instruments in the Current Period, reasons thereof and basis of related accounting treatment:
Other notes:
52. Capital Reserve
Unit: RMB
Increase for the current Decrease for the current
Item Beginning balance Ending balance
period period
Other capital reserves 80,488,045.38 80,488,045.38
Total 80,488,045.38 80,488,045.38
Other notes, including a description of the increase or decrease for the current period and the reasons for the change:
53. Treasury Shares
Unit: RMB
Increase for the current Decrease for the current
Item Beginning balance Ending balance
period period
Other notes, including a description of the increase or decrease for the current period and the reasons for the change:
54. Other Comprehensive Income
Unit: RMB
Amount for the current period
Less: recorded Less: recorded
Amount
in other in other
before Attributable
Beginning comprehensive comprehensive Attributable Ending
Item deducting Less: to the
balance income in income in minority balance
income tax Income tax Company as
prior period prior period shareholders
for the expense the parent
and transferred and transferred after tax
current after tax
in profit or in retained
period
loss in the earnings in the
192
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
current period current period
I. Other
comprehensive
income that - - -
-261,743.15
may not be 2,742,841.65 261,743.15 3,004,584.80
reclassified to
profit or loss
Changes in
fair value of
- - -
other equity -261,743.15
2,742,841.65 261,743.15 3,004,584.80
instrument
investment\
II. Other
comprehensive
income that
may -
763,783.22 763,783.22 -347,753.08
subsequently 1,111,536.30
be reclassified
to profit or
loss
Differences
arising from
translation of
foreign -
763,783.22 763,783.22 -347,753.08
currency- 1,111,536.30
denominated
financial
statements
Total of other
- -
comprehensive 502,040.07 502,040.07
3,854,377.95 3,352,337.88
income
Other notes, including the adjustment of the effective gain/loss on cash flow hedges to the initial recognized amount:
55. Specific Reserve
Unit: RMB
Increase for the current Decrease for the current
Item Beginning balance Ending balance
period period
Other notes, including a description of the increase or decrease for the current period and the reasons for the change:
56. Surplus Reserves
Unit: RMB
Increase for the current Decrease for the current
Item Beginning balance Ending balance
period period
Statutory surplus
48,527,172.97 67,216,150.98 115,743,323.95
reserves
Discretional surplus
365,403.13 365,403.13
reserves
Total 48,892,576.10 67,216,150.98 116,108,727.08
Notes, including changes and reason of change:
57. Undistributed profits
Unit: RMB
Item Current period Previous period
193
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Beginning balance of retained profits
3,692,753,832.81 3,788,180,758.20
before adjustments
Adjust the total amount of undistributed
profits at the beginning of the year 14,220,566.25
(increase +, decrease -)
Beginning balance of retained profits after
3,692,753,832.81 3,802,401,324.45
adjustments
Add: Net profit attributable to owners of
464,014,492.11 537,291,574.13
the Company as the parent
Less: Withdrawal of statutory surplus
67,216,150.98 19,249,276.92
reserve
Dividends of common shares payable 215,148,452.21 405,265,782.56
Others 1,816,919.56 222,424,006.29
Ending retained profits 3,872,586,802.17 3,692,753,832.81
List of adjustment of beginning retained profits:
1) RMB1,697,650.08 beginning retained earnings was affected by retrospective adjustment conducted according to the Accounting
Standards for Business Enterprises and relevant new regulations.
2) RMBXXX beginning retained earnings was affected by changes in accounting policies.
3) RMBXXX beginning retained earnings was affected by correction of significant accounting errors.
4) RMB beginning retained profits was affected by changes in combination scope arising from same control.
5) RMBXXX beginning retained earnings was affected totally by other adjustments.
58. Operating Revenue and Cost of Sales
Unit: RMB
Amount for the current period Amount for the previous period
Item
Revenue Cost Revenue Cost
Principal business 2,947,291,675.00 2,233,525,382.49 3,690,816,438.73 1,978,777,621.22
Others 17,825,350.04 17,852,608.12
Total 2,965,117,025.04 2,233,525,382.49 3,708,669,046.85 1,978,777,621.22
Whether the lower of the net profit before and after deduction of non-recurring gains and losses through audit is negative
Yes □ No
Unit: RMB
Item This year Details Same period of last year Details
Excluding business
income unrelated to the
main business, it mainly
consisted of income from
Excluding business
temporary resettlement
income unrelated to the
compensation for the
main business, it mainly
Chuanbujie scaffolding
consisted of income from
Amount of operating and income from
2,965,117,025.04 temporary resettlement 3,708,669,046.85
income consulting services, and
compensation for the
revenue of the
Chuanbujie scaffolding
consolidated party from
and income from
the beginning of the
consulting services.
period to the date of
consolidation under a
same-control
combination.
Excluding business Excluding business
Total amount of items
income unrelated to the income unrelated to the
deducted from operating 17,825,350.04 91,555,827.12
income main business, it mainly main business, it mainly
consisted of income from consisted of income from
194
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
temporary resettlement temporary resettlement
compensation for the compensation for the
Chuanbujie scaffolding Chuanbujie scaffolding
and income from and income from
consulting services. consulting services, and
revenue of the
consolidated party from
the beginning of the
period to the date of
consolidation under a
same-control
combination.
Proportion of the total
amount of items
deducted from operation 0.60% 2.47%
income in operating
income
I. Business income
irrelevant to principal
business
1. Income from
operations other than
normal operations. Such
as leasing of fixed assets,
intangible assets,
Excluding business Excluding business
packaging, sales of
income unrelated to the income unrelated to the
materials, non-monetary
main business, it mainly main business, it mainly
exchange of assets with
consisted of income from consisted of income from
materials, income
17,825,350.04 temporary resettlement 17,852,608.12 temporary resettlement
realized from the
compensation for the compensation for the
operation of fiduciary
Chuanbujie scaffolding Chuanbujie scaffolding
management business,
and income from and income from
etc., as well as income
consulting services. consulting services.
included in the income
from the main business
but outside the normal
operation of the listed
company.
In January 2022, ITC
Property Management, a
subsidiary of the
Company, acquired
100% equity interest in
Shenzhen Property
Management Co., Ltd.
through a business
combination under the
5. Income of subsidiaries
same control.
acquired in business
In February 2022, ITC
combination under the
73,703,219.00 Property Management, a
same control from the
subsidiary of the
period-beginning to the
Company, acquired
combination date.
100% equity interest in
Shenzhen Shenfubao
Property Development
Co., Ltd., Shenzhen
Shenfubao Hydropower
Municipal Service Co.,
Ltd., Shenzhen Free
Trade Zone Security
Service Co., Ltd. and
195
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Shenzhen Free Trade
Zone Property
Development Co., Ltd.
through a business
combination under the
same control.
Excluding business
income unrelated to the
main business, it mainly
consisted of income from
Excluding business
temporary resettlement
income unrelated to the
compensation for the
main business, it mainly
Chuanbujie scaffolding
Subtotal of business consisted of income from
and income from
income irrelevant to 17,825,350.04 temporary resettlement 91,555,827.12
principal business consulting services, and
compensation for the
revenue of the
Chuanbujie scaffolding
consolidated party from
and income from
the beginning of the
consulting services.
period to the date of
consolidation under a
same-control
combination.
II. Income without
commercial substance
Subtotal of income
without commercial 0.00 No deductions in 2023 0.00 No deductions in 2022
substance
III. Other income
irrelevant to principal
0.00 No deductions in 2023 0.00 No deductions in 2022
business or without
commercial substance
Excluding business
income unrelated to the
main business, it mainly
consisted of income from
Excluding business
temporary resettlement
income unrelated to the
compensation for the
main business, it mainly
Chuanbujie scaffolding
consisted of income from
Amount of operating and income from
2,947,291,675.00 temporary resettlement 3,617,113,219.73
income after deduction consulting services, and
compensation for the
revenue of the
Chuanbujie scaffolding
consolidated party from
and income from
the beginning of the
consulting services.
period to the date of
consolidation under a
same-control
combination.
Breakdown information of operating income and operating cost:
Unit: RMB
Segment 1 Segment 2 Total
Category of Operatin Operatin
contracts Operating Operatin Operatin Operating
Operating cost g g Operating cost
Revenue g cost g cost Revenue
Revenue Revenue
Business 2,965,117,025.0 2,233,525,382.4 2,965,117,025.0 2,233,525,382.4
Type 4 9 4 9
Of which:
Real estate 1,234,537,188.6 1,234,537,188.6
818,496,053.38 818,496,053.38
business 2 2
196
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Property 1,578,719,323.9 1,316,777,091.3 1,578,719,323.9 1,316,777,091.3
management 8 2 8 2
Leasing
151,860,512.44 98,252,237.79 151,860,512.44 98,252,237.79
business
Classificatio
n by
operating
region
Of which:
2,569,038,060.4 1,865,113,132.6 2,569,038,060.4 1,865,113,132.6
Shenzhen
6 8 6 8
Other
396,078,964.58 368,412,249.81 396,078,964.58 368,412,249.81
regions
Market or
customer
type
Of which:
Contract
type
Of which:
Classificatio
n by time of
commodity
transfer
Of which:
Classificatio
n by contract
term
Of which:
Classificatio
n by sales
channel
Of which:
Total
Information about performance obligations:
Funds Type of quality
Nature of goods
Timing of Whether or not undertaken by assurance
that the
fulfilment of Important the person the Company provided by the
Item Company is
performance payment terms primarily expected to be Company and
committed to
obligations responsible returned to related
transfer
customers obligations
Other notes:
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 RMB820,424,953.42 at the period-end, among which RMB817,430,542.61 was expected to be recognized in 2024,
RMB1,812,877.92 was expected to be recognized in 2025, and RMB1,181,532.89 was expected to be recognized in 2026 and 2027.
Information related to variable consideration in contracts:
197
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Significant contract changes or significant transaction price adjustments
Unit: RMB
No. Name of project Amount of revenue
1 SZPRD-Fuchang Garden Phase II 977,069,378.47
2 SZPRD-Golden Collar’s Resort 191,609,379.17
3 SZPRD-Hupan Yujing Phase I 19,045,688.07
4 SZPRD-Songhu Langyuan 3,417,922.80
5 SZPRD-Hupan Yujing Phase II 576,078.89
Other notes:
59. Taxes and Surtaxes
Unit: RMB
Item Amount for the current period Amount for the previous period
Urban maintenance and construction tax 7,295,168.53 11,647,933.20
Educational surcharge 3,290,186.80 5,019,133.52
Property tax 11,160,717.95 5,773,106.72
Land use tax 2,118,518.10 783,939.43
Local educational fee 2,153,783.29 3,314,949.88
Land appreciation tax 78,815,376.80 695,789,536.89
Other taxes 1,816,495.35 3,592,058.16
Total 106,650,246.82 725,920,657.80
Other notes:
60. Administrative Expense
Unit: RMB
Item Amount for the current period Amount for the previous period
Employee remuneration 228,440,720.91 238,534,091.52
Administrative office cost 26,172,003.04 28,064,014.57
Assets amortization and depreciation
24,574,492.30 26,431,430.81
expense
Litigation costs 5,304,840.82 960,169.09
Others 26,086,318.08 36,001,949.75
Total 310,578,375.15 329,991,655.74
Other notes:
61. Selling Expense
Unit: RMB
Item Amount for the current period Amount for the previous period
Agency fee 7,326,766.93 30,682,192.07
198
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Consultancy and sales service charges 7,845,564.84 5,037,241.10
Advertising expenses 10,747,667.28 2,582,813.39
Employee remuneration 9,989,326.02 7,740,228.91
Others 10,847,833.50 7,499,522.31
Total 46,757,158.57 53,541,997.78
Other notes:
62. Development Expense
Unit: RMB
Item Amount for the current period Amount for the previous period
Employee remuneration 3,808,250.90 2,948,680.83
Depreciation and amortization expense 65,160.46 87,038.92
Others 260,073.01 208,409.36
Total 4,133,484.37 3,244,129.11
Other notes:
63. Finance Costs
Unit: RMB
Item Amount for the current period Amount for the previous period
Finance costs 55,928,873.37 64,941,564.63
Less: Interest income -19,183,529.19 -21,591,864.72
Foreign exchange gains or losses 761,442.10 -600,187.19
Others 6,339,243.02 7,821,671.11
Total 43,846,029.30 50,571,183.83
Other notes:
64. Other Income
Unit: RMB
Sources Amount for the current period Amount for the previous period
Government grants related to income 7,802,977.21 10,637,742.42
Government grants related to assets
Return of auxiliary expense for individual
382,244.19 282,364.88
income tax withheld
Additional deduction of VAT 5,302,600.13 8,204,836.92
Rebate of VAT 1,944,370.99 359,114.45
Total 15,432,192.52 19,484,058.67
199
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
65. Gain on Changes in Fair Value
Unit: RMB
Sources Amount for the current period Amount for the previous period
Trading Financial Assets 117,082.19
Total 117,082.19
Other notes:
66. Investment Income
Unit: RMB
Item Amount for the current period Amount for the previous period
Long-term equity investment income
4,339,433.24 2,040,461.81
accounted by equity method
Income from the disposal of long-term
701,420,219.12
equity investments
Funds central clearing house money
-59,130.91
management investment
Total 705,759,652.36 1,981,330.90
Other notes:
The investment income arising from the disposal of long-term equity investments during the period was attributable to the disposal of
100% equity interest in a subsidiary, Shenzhen Jinghengtai Real Estate Development Co., Ltd. (hereinafter referred to as "Jinghengtai
Company"). The 21st meeting of the 10th session of the Board of Directors of the Company and the first extraordinary shareholders'
general meeting in 2023 considered and passed the Proposal on the Public Listing Transfer of 100% Equity of Wholly-owned
Subsidiary Shenzhen Jinghengtai Real Estate Development Co., Ltd., which authorized the public listing transfer of 100% equity of
Jinghengtai Company on the Shenzhen United Equity Exchange, with a listing price of RMB835 million. On December 21, 2023, the
Company and Hualian Holdings Company Limited (hereinafter referred to as "Hualian Holdings") signed the Property Rights
Transaction Contract and the Supplementary Agreement to the Property Rights Transaction Contract (hereinafter referred to as the
"Transaction Contract"). (hereinafter referred to as the "Transaction Contract").On December 22, 2023, Hualian Holdings made a
one-off payment of RMB835 million for the entire transaction price as agreed in the Transaction Contract. On December 22, 2023,
the industrial and commercial change and registration procedures involved in the equity transfer were completed, and 100% equity
interest of Jinghengtai Company was changed to the name of Hualian Holdings, and the Company no longer held equity interest in
Jinghengtai Company.
67. Credit Impairment Loss
Unit: RMB
Item Amount for the current period Amount for the previous period
Bad debt loss -19,844,952.87 -17,395,139.90
Total -19,844,952.87 -17,395,139.90
Other notes:
68. Asset Impairment Loss
Unit: RMB
Item Amount for the current period Amount for the previous period
I. Inventory falling price loss and
impairment provision for contract -212,173,623.03 -528,430.23
performance costs
200
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Total -212,173,623.03 -528,430.23
Other notes:
69. Asset Disposal Income
Unit: RMB
Sources Amount for the current period Amount for the previous period
Gains on disposal of fixed assets 4,611.81 -130,574.60
Investment properties disposal gains 175,811,822.99
Gain on disposal of right-of-use assets 594,704.56
Others 234,052.82 129,357.05
Total 833,369.19 175,810,605.44
70. Non-operating Income
Unit: RMB
Amount recorded in the current
Item Amount for the current period Amount for the previous period
non-recurring profit or loss
Gains on exchange of non-
16,447.29 5,963.68 16,447.29
monetary assets
Confiscated income 2,041,279.63 354,580.59 2,041,279.63
Payments unable to clear 34,134.00 3,129,253.59 34,134.00
Cash overstatement gain 300.00 300.00
Others 1,512,516.17 3,708,206.42 1,512,516.17
Total 3,604,677.09 7,198,004.28 3,604,677.09
Other notes:
71. Non-operating Expense
Unit: RMB
Amount recorded in the current
Item Amount for the current period Amount for the previous period
non-recurring profit or loss
Loss on the swap of non-
142,785.08 207,427.68 142,785.08
monetary assets
Donation 79,840.57 26,000.00 79,840.57
Litigation expenses 694,346.32 258,891.82 694,346.32
Abnormal loss 8,800.00 8,800.00
Penalty and fine for delaying
1,962,837.07 121,377.17 1,962,837.07
payment
Others 3,615,895.16 1,943,197.07 3,615,895.16
Total 6,504,504.20 2,556,893.74 6,504,504.20
Other notes:
201
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
72. Income Tax Expense
(1) List of Income Tax Expense
Unit: RMB
Item Amount for the current period Amount for the previous period
Current income tax expense 142,880,361.95 324,691,681.99
Deferred income tax expense 113,993,935.97 -102,969,556.33
Total 256,874,297.92 221,722,125.66
(2) Adjustment Process of Accounting Profit and Income Tax Expense
Unit: RMB
Item Amount for the current period
Total profit 706,733,159.40
Current income tax expense accounted at statutory/applicable tax rate 176,683,289.85
Influence of applying different tax rates by subsidiaries -5,415,376.77
Influence of income tax before adjustment 5,569,790.87
Effects of non-taxable revenue -1,084,858.31
Influence of non-deductible costs, expenses and losses 25,375,468.22
Effects of non-deductible costs, expenses and losses Effects of the utilization
of deductible losses on which deferred income tax assets were unrecognized in 708,571.83
the prior period
Effect of deductible temporary differences or deductible losses on deferred
55,037,412.23
income tax assets not recognized in the current period
Income tax expense 256,874,297.92
Other notes:
73. Other Comprehensive Income
Refer to Note VII-54 for details.
74. Cash Flow Statement
(1) Cash Related to Operating Activities
Cash Generated from Other Operating Activities
Unit: RMB
Item Amount for the current period Amount for the previous period
Large intercourse funds received 117,918,299.90 531,021,536.31
Interest income 19,183,529.19 21,591,864.72
Net margins, security deposit and various
114,428,356.99 118,560,933.18
special funds received
Government grants received 7,802,977.21 10,637,742.42
Other small receivables 88,094,832.06 30,089,906.24
Decreased limited amount for the current 7,835,036.35 366,965,985.73
202
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
period
Total 355,263,031.70 1,078,867,968.60
Notes:
Cash Used in Other Operating Activities
Unit: RMB
Item Amount for the current period Amount for the previous period
Paying administrative expense in cash 63,006,009.01 61,038,183.86
Paying selling expense in cash 36,673,353.00 48,198,423.56
Net payment of utility expense and various
115,368,992.19 79,085,946.82
collecting payments on behalf of others
Other small payments 41,068,618.68 47,884,937.67
Amount of newly limited funds 15,659,341.60 1,721,815.22
Total 271,776,314.48 237,929,307.13
Notes:
(2) Cash Related to Investing Activities
Cash Generated from Other Investing Activities
Unit: RMB
Item Amount for the current period Amount for the previous period
Significant cash received related to investing activities
Unit: RMB
Item Amount for the current period Amount for the previous period
Net cash received from disposal of
634,578,885.34
subsidiaries and other operating units
Total 634,578,885.34
Notes:
Cash Used in Other Investing Activities
Unit: RMB
Item Amount for the current period Amount for the previous period
Significant cash paid related to investing activities
Unit: RMB
Item Amount for the current period Amount for the previous period
Notes:
203
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
(3) Cash Related to Financing Activities
Cash Generated from Other Financing Activities
Unit: RMB
Item Amount for the current period Amount for the previous period
Receipt of sale and leaseback financing 400,000,000.00
Total 400,000,000.00 0.00
Notes:
Cash Used in Other Financing Activities
Unit: RMB
Item Amount for the current period Amount for the previous period
Cash consideration paid by the merging
party in a business combination under 1,816,919.56 271,489,501.62
common control at the combination date
Profits allocation from consolidated
companies under common control to 5,339,999.94
former shareholders
Payment for lease liabilities 25,266,936.77 29,681,985.71
Total 27,083,856.33 306,511,487.27
Notes:
Changes in liabilities arising from financing activities
□Applicable Not applicable
(4) Description of Cash Flows Presented on a Net Basis
Item Relevant factual information Basis for using net presentation Financial impact
(5) Significant Activities and Financial Impact that Do Not Involve Current Cash Receipts and
Disbursements but Affect the Company's Financial Position or May Affect the Company's Cash Flows in
the Future
75. Supplemental Information for Cash Flow Statement
(1) Supplemental Information for Cash Flow Statement
Unit: RMB
Supplemental information Amount during the current period Previous period
1. Reconciliation of net profit to net cash
flows generated from operating activities
Net profit 449,858,861.48 529,010,293.32
Add: Provision for impairment of assets 232,018,575.90 17,923,570.13
Depreciation of fixed assets, oil-gas assets,
55,281,119.81 89,598,947.26
and productive biological assets
Depreciation of right-of-use assets 18,139,758.01 22,380,277.42
204
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Amortization of intangible assets 379,581.77 484,006.42
Amortization of long-term prepaid
7,726,470.46 7,522,321.06
expenses
Losses from disposal of fixed assets,
intangible assets and other long-lived -833,369.19 -170,564,114.45
assets (gains represented by “-")
Losses from scrap of fixed assets (gains
126,337.79 201,464.00
represented by “-")
Losses from changes in fair value (gains
-117,082.19
represented by “-")
Finance costs (gains represented by “-") 55,167,431.27 69,585,200.52
Investment loss (gains represented by “-") -705,759,652.36 -1,981,330.90
Decrease in deferred income tax assets
131,110,960.37 -102,903,681.08
(gains represented by “-")
Increase in deferred income tax liabilities
-17,117,024.40 -65,875.25
(decrease represented by “-")
Decrease in inventory (gains represented
-485,801,483.89 -1,729,017,854.81
by “-")
Decrease in accounts receivable generated
from operating activities (gains represented -69,297,620.74 611,487,330.14
by “-")
Increase in accounts payable used in
operating activities (decrease represented 64,907,069.39 761,689,632.27
by “-")
Others
Net cash flows from operating activities -264,092,984.33 105,233,103.86
2. Significant investing and financing
activities without involvement of cash
receipts and payments
Conversion of debt to capital
Convertible corporate bonds matured
within one year
Fixed asset under finance lease
3. Net increase/decrease of cash and cash
equivalent:
Closing balance of cash 2,733,139,135.12 1,509,693,857.48
Less: Opening balance of cash 1,509,693,857.48 1,907,742,235.25
Add: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents 1,223,445,277.64 -398,048,377.77
(2) Net Cash Paid for Acquisition of Subsidiaries
Unit: RMB
Amount
Of which:
Of which:
Of which:
Other notes:
(3) Net Cash Received from Disposal of the Subsidiaries
Unit: RMB
205
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Amount
Cash or cash equivalents received in the current period from the
835,000,000.00
disposal of subsidiaries in the current period
Of which:
Less: cash and cash equivalents held by subsidiaries on the date
200,421,114.66
of losing control power
Of which:
Of which:
Net cash proceeds from the disposal of subsidiaries 634,578,885.34
Other notes:
(4) Cash and Cash Equivalents
Unit: RMB
Item Ending balance Beginning balance
I. Cash 2,733,139,135.12 1,509,693,857.48
Of which: Cash on hand 75,265.01 43,833.00
Bank deposits on demand 2,729,897,603.00 1,506,148,081.54
Other monetary assets on demand 3,166,267.11 3,501,942.94
III. Ending balance of cash and cash
2,733,139,135.12 1,509,693,857.48
equivalents
(5) Presentation of Cash and Cash Equivalents that Are Subject to Certain Restrictions on Their Usage
Unit: RMB
Amount during the Reason for classifying the item as cash and cash
Item Previous period
current period equivalents
These are funds within the presale supervision
quota of the project, which we can apply for in
Pre-sale funds for Guangming accordance with the relevant regulations on the
640,559,629.03 0.00
Yutang Shangfu Project supervision of presale funds to pay for the
construction expenditures of the project and the
relevant statutory taxes and fees.
Total 640,559,629.03 0.00
(6) Monetary Assets Not Classified as Cash and Cash Equivalents
Unit: RMB
Reason for not classifying the
Amount during the current
Item Previous period item as cash and cash
period
equivalents
Other notes:
(7) Notes on Other Significant Activities
76. Notes to Items of the Statements of Changes in Owners' Equity
Notes to the name of “Other” of closing balance at the end of the previous year adjusted and the amount adjusted:
206
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
77. Foreign Currency Monetary Items
(1) Foreign Currency Monetary Items
Unit: RMB
Closing foreign currency Ending balance converted to
Item Exchange rate
balance RMB
Monetary capital 63,425,102.95
Of which: USD 120,000.00 7.0827 849,924.00
EUR
HKD 63,245,266.17 0.9062 57,312,860.20
VND 17,960,132,240.00 0.000293 5,262,318.75
Accounts receivable 5,944,668.99
Of which: USD
EUR
HKD
VND 20,288,972,667.00 0.000293 5,944,668.99
Long-term borrowings
Of which: USD
EUR
HKD
Accounts prepaid 85,071.12
Of which: VND 290,345,128.00 0.000293 85,071.12
Other receivables 275,544.61
Of which: HKD 66,215.94 0.9062 60,004.88
VND 735,630,492.00 0.000293 215,539.73
Accounts payable 648,634.87
Of which: HKD 56,000.00 0.9062 50,747.20
VND 2,040,572,245.00 0.000293 597,887.67
Other payables 1,845,634.27
Of which: HKD 356,603.25 0.9062 323,153.87
VND 5,196,178,850.00 0.000293 1,522,480.40
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
Standard
Main operating
Item currency for Basis for choosing
place
accounting
Shum Yip Development Company Limited
Hong Kong HKD Located in HK, settled by HKD
and its subsidiaries
Vietnam Shenguomao Property
Vietnam VND Located in Vietnam, settled by VND
Management Co., Ltd.
207
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
78. Lease
(1) The Company Was Lessee:
Applicable □Not applicable
Variable lease payments that are not covered in the measurement of the lease liabilities
□Applicable Not applicable
Simplified short-term lease or lease expense for low-value assets
Applicable □Not applicable
Amount recognized in profit or loss
Currency: RMB
Category Amount for the year
Depreciation expense on right-of-use assets (Note 1) 18,139,758.01
Interest expense on lease liabilities (Note 2) 3,818,066.83
Expense relating to short-term leases 7,843,708.84
Lease expense for low-value assets
Variable lease payments that are not covered in the measurement of the lease
liabilities (Note 3)
Income from underlease of right-of-use assets 2,330,334.89
Total cash outflows related to leases 25,266,936.77
Note 1: There was no depreciation expense on capitalized right-of-use assets in 2023.
Note 2: There was no interest expense on capitalized lease liabilities in 2023.
Note 3: There were no variable lease payments not included in the measurement of lease liabilities in 2023.
Circumstances involving sale and leaseback transactions
In December 2023, the Company entered into a sale and leaseback contract with MAXWEALTH Financial Leasing Co., Ltd. for the
transfer of certain office equipment with a leaseback period of 48 months. Since the fixed assets were not transferred to the purchaser
from the beginning to the end, it was judged not to be a sale, and the amount received was accounted for as a liability.
(2) The Company Was Lessor:
Operating leases with the Company as lessor
Applicable □Not applicable
Unit: RMB
Of which: income related to variable lease
Item Rental income
payments not included in lease receipts
Lease items 151,860,512.44
Total 151,860,512.44
Finance leases with the Company as lessor
□Applicable Not applicable
Undiscounted lease receipts for each of the next five years
Applicable □Not applicable
208
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Undiscounted lease receipts per year
Item
Ending amount Beginning amount
The 1st year 124,863,019.23 153,626,556.21
The 2 year
nd
70,271,138.44 115,333,626.11
The 3 year
rd
42,292,889.70 59,371,122.09
The 4 year
th
32,718,754.54 40,073,621.45
The 5 year
th
24,297,422.32 32,034,337.31
Total undiscounted lease receipts after
14,891,056.43 33,038,892.86
five years
Unit: RMB
Reconciliation of undiscounted lease receipts to net investment in leases
(3) Recognition of Gain or Loss on Sales under Finance Leases with the Company as a Manufacturer or
Distributor
□Applicable Not applicable
79. Others
VIII. Research and Development Expenditure
Unit: RMB
Item Amount for the current period Amount for the previous period
Staff costs 3,808,250.90 2,948,680.83
Depreciation and amortization expense 65,160.46 87,038.92
Other 260,073.01 208,409.36
Total 4,133,484.37 3,244,129.11
Of which: Expensed research and
4,133,484.37 3,244,129.11
development expenditure
1. R&D Projects Eligible for Capitalization
Unit: RMB
Increased amount of the current period Decreased amount for the current period
Beginning Transferred Ending
Item Internal Recognized
balance into the balance
development Others as intangible
current profit
costs assets
or loss
Total
Significant capitalized R&D projects
Expected manner of Time of Specific basis for
Estimated
Item R&D progress generation of commencement of commencement of
completion date
economic benefits capitalization capitalization
Provision for impairment of development expenditure
209
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Unit: RMB
Increase for the Decrease for the
Item Beginning balance Ending balance Impairment testing
current period current period
2. Significant Outsourced Research and Development Projects in Progress
Manner in which the economic benefits are Judgment criteria and specific basis for
Project name
expected to be generated capitalization or expensing
Other notes:
IX. Change of Consolidation Scope
1. Business Combination Not under the Same Control
(1) Business Combination Not under the Same Control during the Current Period
Unit: RMB
Cash flows
Income of Net profits of the
Time and Recognition acquiree of acquiree acquiree
Cost of
Name of place of Proportion Way to Purchase basis of from the from the from the
gaining the
acquiree gaining of equity gain equity date purchase purchase purchase purchase
equity
equity date date to date to date to the
period-end period-end end of the
period
Other notes:
(2) Combination Cost and Goodwill
Unit: RMB
Combination cost
-Cash
-Fair value of non-cash assets
-Fair value of debt issued or assumed
-Fair value of equity securities issued
-Fair value of contingent consideration
-Fair value of equity interests held before the purchase 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
Method of determining the fair value of the cost of consolidation:
Notes to contingent consideration and changes therein
The main formation reason for the large goodwill:
Other notes:
210
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
(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 capital
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 Current Period
Unit: RMB
Net profits
Income from Net profits
from the Income of
Recognition the period- of the
period-begin the acquiree
Combined Proportion of Combination basis of begin to the acquiree
Basis to the during the
party the equity date combination combination during the
combination period of
date date of the period of
date of the comparison
acquiree comparison
acquiree
Other notes:
211
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
(2) Combination Cost
Unit: RMB
Combination cost
-Cash
--Carrying value of non-cash assets
--Carrying value of debt issued or assumed
--Denomination value of equity securities issued
--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
Combination date End of the previous period
Assets:
Monetary capital
Accounts receivable
Inventories
Fixed assets
Intangible assets
Liabilities:
Borrowings
Accounts payable
Net assets
Less: non-controlling interests
Net assets 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 constitute 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 were any transactions or events during the period in which control of the subsidiary was lost
Yes □ No
Unit: RMB
Disposal price Disposal Disposal Time of Basis for Difference Proportion Carrying Fair value Gains or Method of Amount of
Name of
at thetime of ratio at method losing judging the between the of value of the of the losses from determining other
subsidiaries
loss of control the time at the control time of loss disposal price remaining remaining remaining re- the fair comprehensive
212
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
of loss time of power of control and the equity at equity equity measurement value of the income related
of loss of Company’s the date of interest at interest at of residual remaining to equity
control control share of the loss of the level of the equity at fair equity investment of
subsidiary’s net control the consolidated value interest at former
assets in the consolidated financial the subsidiaries
consolidated financial statement consolidated transferred
financial statements level at the financial into
statements at the date date of loss statement investment
relevant to the of loss of of control level at the gain or loss or
disposed equity control date of loss retained
interest of control earnings
and major
assumptions
Signed the
property
rights
transaction
contract
and
collection
Shenzhen of the
Jinghengtai Sale of 22 entire
Real Estate 835,000,000.00 100.00% equity December transaction 701,420,219.12 0.00% 0.00 0.00 0.00 0.00
Development interests 2023 price, and
Co., Ltd. completed
the
registration
of
industrial
and
commercial
changes.
Other notes:
Whether there was a step-by-step disposal of investment in a subsidiary through multiple transactions and loss of control during the
current period
□Yes No
5. Changes in Combination Scope for Other Reasons
Notes of other changes in the combination scope (e.g., new subsidiaries, liquidation of subsidiaries, etc.) and relevant situations:
Subsidiary Zhanjiang Branch of Shenzhen Properties & Resources Development (Group) Ltd. completed the registration of industrial
and commercial deregistration in June 2023.
Subsidiary Shenzhen Huazhengpeng Property Management Development Co., Ltd. completed the registration of industrial and
commercial deregistration in September 2023.
6. Other
X. Equity in Other Entities
1. Equity in Subsidiaries
(1) Compositions of the Group
Unit: RMB
Main Shareholding percentage
Name of Place of (%) Way of
Registered capital operating Business nature
subsidiaries registration gaining
place Directly Indirectly
Shenzhen
Huangcheng Real 30,000,000.00 Shenzhen Shenzhen Real estate 100.00% Set-up
Estate Co., Ltd.
Shenzhen Wuhe
Industry
100,000,000.00 Shenzhen Shenzhen Real estate 100.00% Set-up
Investment
Development Co.,
213
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Ltd.
Shenzhen Facility
Software and Business
Management
information combination
Community 15,453,000.00 Shenzhen Shenzhen 35.00%
technology not under the
Technology Co.,
services same control
Ltd.
Software and Business
Beijing Facility
information combination
Home Technology 5,000,000.00 Beijing Beijing 17.85%
technology not under the
Co., Ltd.
services same control
SZPRD Xuzhou
Dapeng Real
Estate 50,000,000.00 Xuzhou Xuzhou Real estate 100.00% Set-up
Development Co.,
Ltd.
Dongguan ITC
Changsheng Real
Estate 20,000,000.00 Dongguan Dongguan Real estate 100.00% Set-up
Development Co.,
Ltd.
SZPRD Yangzhou
Real Estate
50,000,000.00 Yangzhou Yangzhou Real estate 100.00% Set-up
Development Co.,
Ltd.
Shenzhen
International
Trade Center
20,000,000.00 Shenzhen Shenzhen Real estate 100.00% Set-up
Property
Management Co.,
Ltd.
Shenzhen
Guomaomei Life 5,000,000.00 Shenzhen Shenzhen Real estate 100.00% Set-up
Service Co., Ltd.
Shandong
Shenguomao Real
Estate 5,000,000.00 Jinan Jinan Service industry 100.00% Set-up
Management Co.,
Ltd.
Chongqing
Shenguomao Real
Estate 5,000,000.00 Chongqing Chongqing Real estate 100.00% Set-up
Management Co.,
Ltd.
Chongqing Aobo
5,000,000.00 Chongqing Chongqing Service industry 100.00% Set-up
Elevator Co., Ltd.
Chongqing
Tianque Elevator
5,000,000.00 Shenzhen Shenzhen Service industry 100.00% Set-up
Technology Co.,
Ltd.
Shenzhen
Guoguan
1,200,000.00 Shenzhen Shenzhen Service industry 100.00% Set-up
Electromechanical
Device Co., Ltd.
Shenzhen
Accommodation
Guomao Catering 2,000,000.00 Shenzhen Shenzhen 100.00% Set-up
and catering
Co., Ltd.
Shenzhen
Property
Engineering and
3,000,000.00 Shenzhen Shenzhen Service industry 100.00% Set-up
Construction
Supervision Co.,
Ltd.
SZPRD
Commercial
40,000,000.00 Shenzhen Shenzhen Service industry 100.00% Set-up
Operation Co.,
Ltd.
214
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Shum Yip
Development HKD20,000,000.00 Hong Kong Hong Kong Real estate 100.00% Set-up
Company Limited
Wayhang
Development Co., HKD2.00 Hong Kong Hong Kong Real estate 100.00% Set-up
Ltd.
Chief Link
Properties Co., HKD100.00 Hong Kong Hong Kong Real estate 70.00% Set-up
Ltd.
Business
Syndis Investment combination
HKD4.00 Hong Kong Hong Kong Real estate 70.00%
Co., Ltd. not under the
same control
Yangzhou
Shouxihu Jingyue
Property 10,000,000.00 Yangzhou Yangzhou Real estate 51.00% Set-up
Development Co.,
Ltd.
Shandong
International
Trade Center Accommodation
3,000,000.00 Jinan Jinan 100.00% Set-up
Hotel and catering
Management Co.,
Ltd.
Shenzhen
Shenshan Special
Cooperation Zone
5,000,000.00 Shenzhen Shenzhen Real estate 65.00% Set-up
Guomao Property
Development Co.,
Ltd.
Shenzhen
Guomao Tongle
Property 2,000,000.00 Shenzhen Shenzhen Real estate 51.00% Set-up
Management Co.,
Ltd.
Shenzhen
Business
Rongyao Real
combination
Estate 10,000,000.00 Shenzhen Shenzhen Real estate 69.00%
not under the
Development Co.,
same control
Ltd.
Business
Shenzhen ITC
combination
Technology Park 30,000,000.00 Shenzhen Shenzhen Real estate 100.00%
under the
Service Co., Ltd.
same control
Shenzhen Julian Business
Human Resources combination
300,000.00 Shenzhen Shenzhen Service industry 100.00%
Development Co., under the
Ltd. same control
Shenzhen
Business
Penghongyuan
combination
Industrial 8,000,000.00 Shenzhen Shenzhen Service industry 100.00%
under the
Development Co.,
same control
Ltd.
Shenzhen
Business
Jinhailian
combination
Property 3,000,000.00 Shenzhen Shenzhen Service industry 100.00%
under the
Management Co.,
same control
Ltd.
Business
Shenzhen Social combination
35,000,000.00 Shenzhen Shenzhen Service industry 100.00%
Welfare Co., Ltd. under the
same control
Shenzhen Business
Fuyuanmin combination
10,000,000.00 Shenzhen Shenzhen Real estate 100.00%
Property under the
Management same control
215
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Limited Liability
Company
Shenzhen
Business
Meilong
combination
Industrial 5,000,000.00 Shenzhen Shenzhen Service industry 100.00%
under the
Development Co.,
same control
Ltd.
Business
Shenzhen Public facilities
combination
Guomao Shenlv 10,600,000.00 Shenzhen Shenzhen management 90.00%
under the
Garden Co., Ltd. services
same control
Shenzhen Jiayuan Business
Property combination
1,000,000.00 Shenzhen Shenzhen Real estate 54.00%
Management Co., under the
Ltd. same control
Shenzhen
Business
Helinhua
combination
Construction 3,000,000.00 Shenzhen Shenzhen Real estate 90.00%
under the
Management Co.,
same control
Ltd.
Shenzhen Business
Zhongtongda Construction combination
2,500,000.00 Shenzhen Shenzhen 90.00%
House Xiushan industry under the
Service Co., Ltd. same control
Shenzhen Business
Kangping combination
1,000,000.00 Shenzhen Shenzhen Service industry 90.00%
Industrial Co., under the
Ltd. same control
Business
Shenzhen Sports combination
3,300,000.00 Shenzhen Shenzhen Service industry 100.00%
Service Co., Ltd. under the
same control
Business
Shenzhen
combination
Teacher’s Home 1,660,000.00 Shenzhen Shenzhen Service industry 100.00%
under the
Training Co., Ltd.
same control
Shenzhen Business
Education combination
4,985,610.00 Shenzhen Shenzhen Service industry 100.00%
Industrial Co., under the
Ltd. same control
Business
Shenzhen Yufa
combination
Industrial Co., 1,050,000.00 Shenzhen Shenzhen Service industry 80.95%
under the
Ltd.
same control
SZPRD Fuyuantai
Development Co., 10,000,000.00 Shenzhen Shenzhen Real estate 100.00% Set-up
Ltd.
Xiamen
Shenguomao
Industrial City 5,000,000.00 Xiamen Xiamen Service industry 51.00% Set-up
Smart Service
Co., Ltd.
Vietnam
Shenguomao
Property USD200,000.00 Vietnam Vietnam Service industry 100.00% Set-up
Management Co.,
Ltd.
Shenzhen SZPRD
Yanzihu
10,000,000.00 Shenzhen Shenzhen Real estate 100.00% Set-up
Development Co.,
Ltd.
Shenzhen
Guangming Wuhe
50,000,000.00 Shenzhen Shenzhen Real estate 100.00% Set-up
Real Estate Co.,
Ltd.
Dongguan Wuhe 50,000,000.00 Dongguan Dongguan Real estate 100.00% Set-up
216
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Real Estate Co.,
Ltd.
Shenzhen Business
Property combination
7,250,000.00 Shenzhen Shenzhen Real estate 100.00%
Management Co., under the
Ltd. same control
Business
Shenzhen Shenwu combination
3,500,000.00 Shenzhen Shenzhen Real estate 100.00%
Elevator Co., Ltd. under the
same control
Shenzhen Business
Shenfang combination
1,000,000.00 Shenzhen Shenzhen Real estate 100.00%
Property Cleaning under the
Co., Ltd. same control
Shenzhen Foreign Business
Trade Property combination
5,000,000.00 Shenzhen Shenzhen Service industry 100.00%
Management Co., under the
Ltd. same control
Shenzhen
Business
Shenfubao
combination
Property 15,000,000.00 Shenzhen Shenzhen Real estate 100.00%
under the
Development Co.,
same control
Ltd.
Shenzhen Fubao Business
Urban Resources combination
5,000,000.00 Shenzhen Shenzhen Service industry 60.00%
Management Co., under the
Ltd. same control
Shenzhen
Business
Shenfubao
combination
Hydropower 10,000,000.00 Shenzhen Shenzhen Real estate 100.00%
under the
Municipal Service
same control
Co., Ltd.
Shenzhen Free Business
Trade Zone combination
2,000,000.00 Shenzhen Shenzhen Real estate 100.00%
Security Service under the
Co., Ltd. same control
Shenzhen Wuhe
Urban Renewal 195,000,000.00 Shenzhen Shenzhen Real estate 100.00% Set-up
Co., Ltd.
Yangzhou Wuhe
Real Estate Co., 50,000,000.00 Yangzhou Yangzhou Real estate 67.00% Set-up
Ltd.
Shenzhen Tonglu
Wuhe Investment
10,000,000.00 Shenzhen Shenzhen Real estate 100.00% Set-up
Development Co.,
Ltd.
Shenzhen
International
Trade Industry 2,800,000.00 Shenzhen Shenzhen Real estate 55.00% Set-up
Space Service
Co., Ltd.
Unit: RMB
Notes of shareholding percentage in subsidiaries different from voting percentage:
In May 2021, Shenzhen Wuhe Industry Investment Development Co., Ltd. (hereinafter referred to as "Wuhe Company"), a
subsidiary of the Company, acquired 35% of the equity of Shenzhen Facility Management Community Technology Co., Ltd.
(hereinafter referred to as "FMC") through acquisition of equity and directional capital increase. Meanwhile, according to the
agreement of the cooperation framework on equity acquisition signed by Wuhe Company and the original shareholders, 16% of the
voting rights that the original shareholders hold or actually control in the equity of FMC shall be unconditionally granted to Wuhe
Company to exercise after the transaction date. There are no prerequisites for the granting of voting rights, and the term of the voting
rights is not stipulated in the contract.
Basis of holding half or less voting rights but still controlling the investee and holding more than half of the voting rights but not
controlling the investee:
217
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Basis of controlling significant structural entities incorporated in the scope of combination:
Basis of determining whether the Company is the agent or the mandatory:
Other notes:
(2) Significant Non-wholly-owned Subsidiary
Unit: RMB
The profit or loss Declaring dividends
Shareholding proportion Balance of non-
attributable to the non- distributed to non-
Name of subsidiaries of non-controlling controlling interests at
controlling interests for controlling interests for
interests the period-end
the current period the current period
Shenzhen Rongyao Real
Estate Development Co., 31.00% -11,728,370.67 -7,166,774.26
Ltd.
Yangzhou Wuhe Real
33.00% -10,467,489.08 5,111,280.10
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
Name of Non- Non- Non- Non-
subsidiaries Current Total Current Total Current Total Current Total
current current current current
assets assets liabilities liabilities assets assets liabilities liabilities
assets liabilities assets liabilities
Shenzhen
Rongyao Real 6,104,8
161,894, 6,266,725, 3,217,495, 3,072,349, 6,289,844, 5,463,417, 148,966, 5,612,384, 237,683, 5,360,025, 5,597,709,
Estate 31,530.
Development 251.74 782.29 278.38 130.56 408.94 860.24 845.59 705.83 829.61 967.25 796.86
55
Co., Ltd.
Yangzhou 1,291,3
Wuhe Real 3,086,58 1,294,446, 1,278,957, 1,278,957, 1,003,117, 923,562. 1,004,041, 956,832, 956,832,73
Estate Co., 59,823.
3.61 406.92 679.33 679.33 568.27 28 130.55 739.09 9.09
Ltd. 31
Unit: RMB
Amount for the current period Amount for the previous period
Name of Total Cash flows Total Cash flows
subsidiaries Operating Operating
Net profit comprehensive from operating Net profit comprehensive from operating
Revenue Revenue
income activities income activities
Shenzhen
Rongyao Real
Estate -37,833,453.79 -37,833,453.79 -535,294,796.10 -41,751,240.79 -41,751,240.79 -313,044,955.93
Development
Co., Ltd.
Yangzhou Wuhe
Real Estate Co., -31,719,663.87 -31,719,663.87 -43,688,784.15 -2,791,608.54 -2,791,608.54 -716,033.23
Ltd.
Other notes:
218
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
(4) Significant restrictions on leveraging the assets and liquidating the liabilities of the business consortium
(5) Financial support or other support 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 Changing but the Company Still
Controls 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 purchase cost/disposal consideration
Less: Share of net assets of subsidiaries based on percentage of
equity acquired/disposed of
Difference
Of which: Adjusting capital reserve
Adjusting surplus reserve
Adjusting retained profits
Other notes:
3. Equity in Joint Ventures or Associated Enterprises
(1) Significant Joint Ventures or Associated Enterprises
Shareholding percentage (%) Accounting
treatment of the
Main operating Place of investment to
Name Business nature
place registration Directly Indirectly joint venture or
associated
enterprise
Shenzhen Real
Estate Jifa Warehouse
Shenzhen Shenzhen 25.00% 25.00% Equity method
Warehousing service
Co., Ltd.
Tian’an
International
Building
Property
Property Shenzhen Shenzhen 50.00% Equity method
management
Management
Company of
Shenzhen
CSCEC
Intelligent Commercial
Shenzhen Shenzhen 10.00% Equity method
Parking services
Technology Co.,
219
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Ltd.
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
Tian’an International Tian’an International
Shenzhen Jifa Building Property Shenzhen Jifa Building Property
Warehouse Co., Ltd. Management Company Warehouse Co., Ltd. Management Company
of Shenzhen of Shenzhen
Current assets 13,949,127.78 59,553,501.09 6,110,801.95 58,848,700.91
Of which: Cash and cash
11,574,044.52 38,464,410.56 4,923,260.32 37,841,255.88
equivalents
Non-current assets 85,381,409.08 42,101.51 86,342,531.70 46,757.57
Total assets 99,330,536.86 59,595,602.60 92,453,333.65 58,895,458.48
Current liabilities 3,198,899.85 28,927,454.58 2,992,163.07 28,404,537.12
Non-current liabilities 16,566,273.37 16,415,016.74
Total liabilities 3,198,899.85 45,493,727.95 2,992,163.07 44,819,553.86
Equity of non-
controlling interests
Equity attributable to
shareholders of the 96,131,637.01 14,101,874.65 89,461,170.58 14,075,904.62
Company as the parent
Net assets shares
calculated at the 48,065,818.51 7,050,937.33 44,730,585.29 7,037,952.31
shareholding proportion
Adjusted items
- Goodwill
--Unrealized profit of
intra-company
transaction
--Other
Carrying value of equity
investment to joint 48,065,818.51 7,050,937.33 44,730,585.29 7,037,952.31
ventures
Fair values of equity
investments of joint
ventures with quoted
prices
Operating Revenue 13,401,998.52 15,353,082.93 7,991,120.67 17,348,456.03
Financial expenses -17,937.34 -473,753.01 -10,286.81 -369,996.65
Income tax expense 2,225,102.81 9,505.10 810,230.79 136,495.54
Net profit 6,670,466.43 2,780.71 2,427,840.35 387,872.11
Net profit from
discontinued operations
Other comprehensive
income
Total comprehensive
6,670,466.43 2,780.71 2,427,840.35 387,872.11
income
220
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Dividends received from
the joint venture in the
current period
Other notes:
(3) Main Financial Information of Significant Associated Enterprises
Unit: RMB
Closing balance/amount of the current Opening balance/amount of the previous
period period
CSCEC CSCEC
Current assets 256,074,109.31 235,089,462.02
Non-current assets 11,617,792.09 3,014,735.77
Total assets 267,691,901.40 238,104,197.79
Current liabilities 95,957,288.78 77,308,723.18
Non-current liabilities 486,565.88 24,777.90
Total liabilities 96,443,854.66 77,333,501.08
Equity of non-controlling interests
Equity attributable to shareholders of the
171,248,046.74 160,770,696.71
Company as the parent
Net assets shares calculated at the
17,124,804.67 16,077,069.67
shareholding proportion
Adjusted items
- Goodwill
--Unrealized profit of intra-company
transaction
--Other
Carrying value of investment to associated
28,940,994.71 28,012,899.71
enterprises
Fair value of equity investments in
associated enterprises with publicly quoted
prices
Operating Revenue 200,994,767.06 169,285,776.61
Net profit 9,912,150.03 6,326,055.81
Net profit from discontinued operations
Other comprehensive income
Total comprehensive income 9,912,150.03 6,326,055.81
Dividends received from the associates in
63,120.00
the current period
Other notes:
(4) Summary Financial Information of Insignificant Joint Ventures or Associated Enterprises
Unit: RMB
221
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Closing balance/amount of the current Opening balance/amount of the previous
period period
Joint venture:
Sum calculated by shareholding ratio of
each item
Associated enterprises:
Sum calculated by shareholding ratio of
each item
Other notes:
(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
The accumulative unrecognized
Name losses in previous share of net profit) in current
losses in current period
accumulatively derecognized 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 Place of registration Business nature
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
222
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
XI. Government Grants
1. Government Grants Recognized at the End of the Reporting Period at the Amount Receivable
□Applicable Not applicable
Reasons for failing to receive government grants in the estimated amount at the estimated point in time
□Applicable Not applicable
2. Liability Items Involving Government Grants
□Applicable Not applicable
3. Government Grants Recognized as Current Profit or Loss
Applicable □Not applicable
Unit: RMB
Accounting items Amount for the current period Amount for the previous period
Other income 7,690,477.21 10,637,742.42
Other notes:
XII. Risks Associated with Financial Instruments
1. Various Types of Risks Arising from 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. Risks from Financial Instruments
1. Classification of Financial Instruments
(1) The Carrying Value of Financial Assets on the Balance Sheet Date
① 1 December 2023
Financial assets Financial assets at fair value
Financial assets at fair value
Item measured at and changes included in other Total
through profit or loss
amortized cost comprehensive income
Monetary capital 2,748,798,476.72 2,748,798,476.72
Accounts receivable 506,088,217.25 506,088,217.25
Other receivables 624,394,372.82 624,394,372.82
Other equity
instrument 636,926.20 636,926.20
investments
② 31 December 2022
Financial assets Financial assets at fair value
Financial assets at fair value
Item measured at and changes included in other Total
through profit or loss
amortized cost comprehensive income
223
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Financial assets Financial assets at fair value
Financial assets at fair value
Item measured at and changes included in other Total
through profit or loss
amortized cost comprehensive income
Monetary capital 1,517,528,893.83 1,517,528,893.83
Accounts receivable 419,933,915.30 419,933,915.30
Other receivables 639,903,523.33 639,903,523.33
Long-term
22,651,454.07 22,651,454.07
receivables
Other equity
instrument 887,838.64 887,838.64
investments
2. The Carrying Value of Financial Liabilities on the Balance Sheet Date
① 1 December 2023
Financial liabilities at fair
Item Other financial liabilities Total
value through profit or loss
Short-term loan 230,915,000.00 230,915,000.00
Accounts payable 662,869,059.59 662,869,059.59
Other payables 1,217,303,294.24 1,217,303,294.24
Current portion of non-current
3,092,324,853.07 3,092,324,853.07
liabilities
Long-term borrowings 1,399,889,274.47 1,399,889,274.47
Lease liabilities 10,571,092.27 10,571,092.27
Long-term accounts payable 400,105,655.56 400,105,655.56
② 31 December 2022
Financial liabilities at fair value
Item Other financial liabilities Total
through profit or loss
Short-term loan
Accounts payable 608,283,388.52 608,283,388.52
Other payables 1,515,085,832.45 1,515,085,832.45
Current portion of non-
218,858,766.82 218,858,766.82
current liabilities
Long-term borrowings 3,618,782,344.00 3,618,782,344.00
Lease liabilities 77,963,283.55 77,963,283.55
2. Credit Risk
Credit risk means the risk of financial losses incurred to the other party when one party of a financial instrument is unable to fulfill its
obligations.
1. Credit Risk Management Practice
(1) Credit Risk Evaluation Method
224
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
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 VII-1, VII-2, VII-7 for Details of the Reconciliation Statements of Beginning Balance and Ending Balance of
Financial Instrument Loss Provision.
4. Credit Risk Exposure and Credit Risk Concentration
The Company’s credit risk mainly comes from monetary assets and accounts receivable. To control the aforementioned relevant risks,
the Company has adopted the following measures.
(1) Monetary Assets
The Company places its monetary assets with financial institutions of high credit ratings. Thus, its credit risk is low.
(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 of 31 December 2021, there were certain credit concentration risks in
the Company, and 59.45% of the accounts receivable of the Company (54.09% on 31 December 2022) 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.
3. Liquidity Risk
225
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Liquidity risk refers to the risk of fund shortage occurring when the Company fulfills the settlement obligation in the mode of cash
delivery or other financial assets. Liquidity risk may originate from the failure to sell financial assets at fair value as soon as possible;
or from the other party’s failure to pay off its contractual debts; or from the earlier maturity of debts; or from the failure to generate
the expected cash flow.
To control the risk, the Company comprehensively adopts bank loans as financing approach, appropriately combines long-term and
short-term financing modes and optimizes the financing structure to maintain the balance between financing sustainability and
flexibility. The Company has obtained the line of credit from a number of commercial banks to satisfy its operation fund needs and
capital expenditure.
The analysis of the financial liabilities based on the maturity period of the undiscounted cash flow is as follows:
31 December 2023
Item
Undiscounted contract More than three
Carrying value Within 1 year 1-3 years
amount years
Banking borrowings 1,630,804,274.47 1,886,101,350.83 379,121,985.22 709,659,943.62 797,319,421.99
Accounts payable 662,869,059.59 662,869,059.59 662,869,059.59
Other payables 1,217,303,294.25 1,217,303,294.25 1,205,100,618.21 12,202,676.04
Current portion of
other non-current 3,092,324,853.07 3,111,187,663.28 3,111,187,663.28
liabilities
Lease liabilities 10,571,092.27 15,904,640.37 7,730,396.15 8,174,244.22
Long-term accounts
400,105,655.56 480,600,833.30 18,293,137.50 41,277,444.45 421,030,251.35
payable
Total 7,013,978,229.21 7,373,966,841.62 5,376,572,463.80 758,667,784.22 1,238,726,593.60
Continued:
December 31, 2022
Item
Undiscounted More than three
Carrying value Within 1 year 1-3 years
contract amount years
Banking borrowings 3,618,782,344.00 3,998,835,011.38 190,669,039.72 3,648,297,102.30 159,868,869.36
Accounts payable 608,283,388.52 608,283,388.52 608,283,388.52
Other payables 1,515,085,832.45 1,515,085,832.45 1,502,883,156.41 12,202,676.04
Current portion of
other non-current 218,858,766.82 223,385,608.63 223,385,608.63
liabilities
Lease liabilities 77,963,283.55 92,467,880.37 45,844,010.07 46,623,870.30
Total 6,038,973,615.34 6,438,057,721.35 2,525,221,193.28 3,694,141,112.37 218,695,415.70
4. 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
226
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
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 of 30 June 2023, under the assumption of other fixed variables with 50 basis points changed in interest rate, the bank loan of
RMB4,470,302,598.47 (RMB3,809,915,668.00 on 31 December 2022) calculated at floating rate would not result in significant
influence on total profit and shareholders’ equity of the Company.
2. Foreign Exchange Risk
Foreign exchange risk refers to the risk that may lead to the changes of fair value of financial instruments or future cash flows due to
fluctuation in exchange rate. The risk of changes of exchange rate facing the Company is mainly related to foreign currency
monetary assets and liabilities of the Company. The Company operates in mainland China, and the main activities are recorded by
RMB. Thus, the foreign exchange market risk undertaken is insignificant for the Company.
For details of the Company's foreign currency monetary assets and liabilities at the end of the Current Period, please refer to Note
VII-77 in the Current Report.
2. Hedge
(1) The Company Carries out Hedging Business for Risk Management
□Applicable Not applicable
(2) The Company Conducts Eligible Hedging Operations and Applies Hedge Accounting
Unit: RMB
Cumulative fair value
Impact of hedge
Carrying value related to hedge adjustment of the Hedge effectiveness and
accounting on the
Item hedged items and hedged item included in hedge ineffectiveness
Company's financial
hedging instruments the recognized carrying partial sources
statements
value of the hedged item
Types of hedge risk
Types of hedge
Other notes:
(3) The Company Conducts Hedging Operations for Risk Management, Expects to Achieve Its Risk Management Objectives,
but Does Not Apply Hedge Accounting
□Applicable Not applicable
3. Financial Assets
(1) Classification of Transfer Methods
□Applicable Not applicable
(2) Financial Assets Derecognized due to Transfer
□Applicable Not applicable
(3) Continued Involvement in the Transfer of Assets Financial Assets
□Applicable Not applicable
Other notes:
XIII. The Disclosure of Fair Value
1. Ending Fair Value of Assets and Liabilities at Fair Value
Unit: RMB
Closing fair value
Item Fair value measurement Fair value measurement Fair value measurement
Total
items at level 1 items at level 2 items at level 3
227
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
I. Consistent Fair Value
-- -- -- --
Measurement
(III) Other equity
636,926.20 636,926.20
instrument investment
The total amount of
assets consistently 636,926.20 636,926.20
measured at fair value
II. Inconsistent Fair
-- -- -- --
Value Measurement
2. Basis for Determining the Market Price of Continuous and Non-continuous Level 1 Fair Value
Measurement Items
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
XIV. Related Party and Related-party Transactions
1. Information Related to the Company as the Parent of the Company
Proportion of share Proportion of voting
Name of the held by the rights owned by the
Company as the Place of registration Business nature Registered capital Company as the Company as the
parent parent against the parent against the
Company (%) Company (%)
Shenzhen Limited liability
Investment Holdings Shenzhen company (solely- 32,359,000,000.00 56.96% 56.96%
Co., Ltd. owned by the state)
Notes: Information on the Company as the parent
(1) The parent company of the Company is Shenzhen Investment Holdings Co., Ltd. (hereinafter referred to as “SIHC”), a newly-
established and organized state-owned capital investment company based on the original three state-owned assets management
companies in October 2004, and its main function is to manage the partial municipal state-owned companies according to the
228
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
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 ordinary shares of the Company in unlimited
circulation (representing 6.382% of the total share capital of the Company) held by SIHC to Shenzhen State-owned Equity
Management Co., Ltd. for free to replenish the social security funds. Shenzhen State-owned Equity Management Co., Ltd. is a newly
established wholly-owned subsidiary of SIHC to manage the transferred state-owned equity in a special account. 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
Please refer to Note X-1 for details on the Company’s subsidiaries.
3. Information on the Joint Ventures and Associated Enterprises of the Company
Please refer to Note X-2 for details on the Company’s joint ventures and associated enterprises.
Information on other joint venture or associated enterprise of occurring related-party transactions with the Company in Current
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 of other related party 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
Yangzhou Lvfa Real Estate Co., Ltd. Subsidiary Yangzhou Wuhe by non-controlling interests
Shenzhen Wufang Ceramics Industrial Co., Ltd. Associated enterprise of the Company
Shenzhen Real Estate Jifa Warehousing Co., Ltd. Joint venture of the Company
Tian’an International Building Property Management Company
Joint venture of the Company
of Shenzhen
Guoren P&C Subsidiary of the Company as the parent of the Company
Shenzhen General Institute of Architectural Design and Research Wholly-owned subsidiary of the Company as the parent of the
Co., Ltd. Company
Shenzhen Water Planning and Design Institute Co., Ltd. Subsidiary of the Company as the parent of the Company
Wholly-owned subsidiary of the Company as the parent of the
Shenzhen People's Congress Cadre Training Center
Company
Wholly-owned subsidiary of the Company as the parent of the
Shenzhen Shenfubao (Group) Co., Ltd.
Company
Shenzhen Guarantee Group Co., Ltd. Subsidiary of the Company as the parent of the Company
Wholly-owned subsidiary of the Company as the parent of the
China Shenzhen Foreign Trade (Group) Corp. Ltd.
Company
Wholly-owned subsidiary of the Company as the parent of the
Shenzhen Bay Technology Development Co., Ltd.
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
Shenzhen Shentou Property Development Co., Ltd.
Company
Shenzhen Convention & Exhibition Center Management Co., Wholly-owned subsidiary of the Company as the parent of the
229
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Ltd. Company
Shenzhen Shenzhen Hong Kong Science and Technology
Subsidiary of the Company as the parent of the Company
Innovation Cooperation Zone Development Co., Ltd.
Shenzhen Tsinghua University Research Institute Subsidiary of the Company as the parent of the 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 Construction Development (Group) Company Subsidiary of the Company as the parent of the Company
Shenzhen Hi-tech Zone Investment Development Group Co.,
Subsidiary of the Company as the parent of the Company
Ltd.
Wholly-owned subsidiary of the Company as the parent of the
Shenzhen Sports Center Operation Management Co., Ltd.
Company
Shenzhen Xiangmihu International Exchange Center Wholly-owned subsidiary of the Company as the parent of the
Development Co., Ltd. Company
Shenzhen Environmental Protection Technology Group Co., Ltd. Subsidiary of the Company as the parent of the Company
Shenzhen Tianjun Industrial Co., Ltd. Parent company's sub-subsidiary
Wholly-owned sub-subsidiary of the Company as the parent of
Shenzhen Cultural Business Development Co., Ltd.
the Company
Wholly-owned sub-subsidiary of the Company as the parent of
Shenzhen Meibainian Garment Co., Ltd.
the Company
Shenzhen Guohui Industry Co., Ltd. Parent company's sub-subsidiary
Wholly-owned sub-subsidiary of the Company as the parent of
Shen ZHEN Light Industrial Products IMP.& EXP. Co., Ltd.
the Company
Wholly-owned sub-subsidiary of the Company as the parent of
Shenzhen Talent Recruitment International Co., Ltd.
the Company
Shenzhen Shendan Zengxin Financing Guarantee Co., Ltd. Parent company's sub-subsidiary
Shenzhen Yitong Digital Technology Innovation Development
Parent company's sub-subsidiary
Co., Ltd.
Wholly-owned sub-subsidiary of the Company as the parent of
Shenzhen Foreign Service Group Co., Ltd.
the Company
Shenzhen SDG Service Co., Ltd. Parent company's sub-subsidiary
Wholly-owned sub-subsidiary of the Company as the parent of
Shenzhen Investment Building Hotel Co., Ltd.
the Company
Wholly-owned sub-subsidiary of the Company as the parent of
Shenzhen Infinova Smart Park Technology Co., Ltd.
the Company
Shenzhen Shantou Special Cooperation Zone Branch of Wholly-owned sub-subsidiary of the Company as the parent of
Shenzhen Water Planning and Design Institute Co., Ltd. the Company
China Kunpeng Industry Source Innovation Center (Shenzhen) Wholly-owned sub-subsidiary of the Company as the parent of
Co., Ltd. the Company
Wholly-owned sub-subsidiary of the Company as the parent of
Shenzhen Special Zone Literature Magazine Co., Ltd.
the Company
Wholly-owned sub-subsidiary of the Company as the parent of
Shenzhen Shenyue United Investment Co., Ltd.
the Company
Shenzhen Shenzhen Hong Kong Science and Technology
Parent company's sub-subsidiary
Innovation Park Operation Development Co., Ltd.
Shenzhen Chuangke Development Co., Ltd. Parent company's sub-subsidiary
Wholly-owned sub-subsidiary of the Company as the parent of
Shenzhen Hi-tech Zone Development Construction Co., Ltd.
the Company
Shenzhen Investment Holdings Development Co., Ltd. Parent company's sub-subsidiary
Wholly-owned sub-subsidiary of the Company as the parent of
Shenzhen Bay (Baoding) Innovation Development Co., Ltd.
the Company
Wholly-owned sub-subsidiary of the Company as the parent of
Shenzhen Bay Area International Hotel Co., Ltd.
the Company
Wholly-owned sub-subsidiary of the Company as the parent of
Shenzhen SME Venture Capital Co., Ltd.
the Company
Wholly-owned sub-subsidiary of the Company as the parent of
Shenzhen Shenfubao Eastern Investment Development Co., Ltd.
the Company
Wholly-owned sub-subsidiary of the Company as the parent of
Shenzhen Fubao Industrial Park Operation Co., Ltd.
the Company
Shenzhen Large Industrial Zone (Shenzhen Export Processing Wholly-owned sub-subsidiary of the Company as the parent of
Zone) Development Management Group Co., Ltd. the Company
230
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Shenzhen Shenfubao (Group) Tianjin Investment Development Wholly-owned sub-subsidiary of the Company as the parent of
Co., Ltd. the Company
Shenzhen Shenfubao (Group) Tianjin Industrial Development Wholly-owned sub-subsidiary of the Company as the parent of
Co., Ltd. the Company
Shenzhen Urban Construction Mingyuan Industrial Co., Ltd. Parent company's sub-subsidiary
Shenzhen Environment Engineering Technology Center Co., Ltd. Parent company's sub-subsidiary
Wholly-owned sub-subsidiary of the Company as the parent of
Shenzhen Transportation Station Development Co., Ltd.
the Company
Shenzhen Free Trade Zone Life Service Co., Ltd. Parent company's sub-subsidiary
Wholly-owned sub-subsidiary of the Company as the parent of
Shenzhen Infinova Renyong Information Co., Ltd.
the Company
Wholly-owned sub-subsidiary of the Company as the parent of
Shenzhen Rule of Law Training Center
the Company
Shenzhen South Certification Co., Ltd. Parent company's sub-subsidiary
Shenzhen Xingye Logistics Co., Ltd. Parent company's sub-subsidiary
Shenzhen Bay Wanli Hotel Branch of Shenzhen Wuzhou Hotel Wholly-owned sub-subsidiary of the Company as the parent of
Management Co., Ltd. the Company
Shenzhen Bay Wanyi Hotel Branch of Shenzhen Wuzhou Hotel Wholly-owned sub-subsidiary of the Company as the parent of
Management Co., Ltd. the Company
Wholly-owned sub-subsidiary of the Company as the parent of
Shenzhen Xingye Xingfa Clothing Manufacturing Co., Ltd.
the Company
Hebei Shenbao Investment Development Co., Ltd. Parent company's sub-subsidiary
Shenzhen Total Logistics Service Co., Ltd. Parent company's sub-subsidiary
Shenzhen Tianjun Biotechnology Development Co., Ltd. Parent company's sub-subsidiary
Shenzhen Environmental Protection Technology Group Co., Ltd. Subsidiary of the Company as the parent of the Company
Shenzhen Environmental Engineering Science and Technology
Parent company's sub-subsidiary
Center Co., Ltd.
Shenzhen City Construction Industrial Park Development Co.,
Parent company's sub-subsidiary
Ltd
Chengdu Zunxi Land Co., Ltd. Parent company's sub-subsidiary
Shenzhen Chenglong Real Estate Development Co., Ltd. Parent company's sub-subsidiary
Shenzhen Shenzhen Shantou Special Cooperation Zone SIHC Wholly-owned subsidiary of the Company as the parent of the
Investment Development Co., Ltd. Company
Dongguan SIHC Investment Development Co., Ltd. Parent company's sub-subsidiary
Shenzhen Binjiang Industry Co., Ltd. Parent company's sub-subsidiary
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
Content of the
Amount for the The approval trade Whether exceed Amount for the
Related parties related-party
current period credit trade credit or not previous period
transaction
Guoren P&C Insurance 4,005,407.26 2,582,000.00 Yes 3,296,379.71
Shenzhen Guarantee
Guarantee fee 26,548.11
Group Co., Ltd.
ShenZhen Special
Economic Zone
Real Estate & Management service
4,731,334.42 4,026,979.11
Properties (Group) fee
Co., Ltd. and its
consolidated
231
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
subsidiaries, except
where the context
otherwise requires
Shen ZHEN Light
Industrial Products
Catering service 50,477.89
IMP.& EXP. Co.,
Ltd.
Shenzhen People's
Congress Cadre Training fee 1,780.00
Training Center
Shenzhen Foreign
Outsourcing service
Service Group Co., 9,312,805.11
charges
Ltd.
Shenzhen Rule of
Training fee 185,019.48
Law Training Center
Shenzhen Guohui
Catering service 45,600.00
Industry Co., Ltd.
Shenzhen General
Institute of
Project architectural
Architectural Design 8,940,492.75 8,161,599.83
design service
and Research Co.,
Ltd.
Shenzhen
Apparel
Meibainian Garment 402,743.64
procurement
Co., Ltd.
Shenzhen South
Certification Co., Certification fees 24,528.30
Ltd.
Shenzhen Shendan
Zengxin Financing Guarantee fee 793,950.00
Guarantee Co., Ltd.
Shenzhen
Shenfubao (Group) Catering service 200,535.00 210,975.00
Co., Ltd.
Shenzhen Water
Consultant service
Planning and Design 13,331.00 113,320.00
expense
Institute Co., Ltd.
Shenzhen SDG
Property service fee 294,540.95 465,715.62
Service Co., Ltd.
Shenzhen Cultural
Business
Activity fees 175,633.75
Development Co.,
Ltd.
Shenzhen Yitong
Digital Technology
Innovation Catering service 8,982.00
Development Co.,
Ltd.
Shenzhen Tianjun Demolition
27,000,000.00
Industrial Co., Ltd. compensation
Shenzhen Tianjun Plant maintenance
56,613.20
Industrial Co., Ltd. services
Shenzhen Bay
Technology Management service
62,480,975.10 81,600,000.00 No 86,518,273.32
Development Co., fee
Ltd.
Shenzhen Infinova
Renyong Intelligent
384,103.84
Information Co., engineering expense
Ltd.
China Shenzhen
Management service
Foreign Trade 305,550.31
fee
(Group) Corp. Ltd.
Shenzhen Tianjun
Plant maintenance
Biotechnology 107,161.34
services
Development Co.,
232
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Ltd.
Shenzhen
Environmental Fees for
Protection environmental 385,580.19
Technology Group services
Co., Ltd.
Shenzhen
Environmental Fees for
Engineering Science environmental 111,005.66
and Technology services
Center Co., Ltd.
Information of sales of goods and provision of labor service
Unit: RMB
Content of the related-party
Related parties Amount for the current period Amount for the previous period
transaction
Guoren P&C Property service fee 347,629.57 365,485.39
Hebei Shenbao Investment
Project payment 26,970,736.12 20,874,664.05
Development Co., Ltd.
Hebei Shenbao Investment
Property service fee 13,195,908.87 10,585,122.24
Development Co., Ltd.
China Kunpeng Industry
Source Innovation Center Property service fee 1,381,929.74
(Shenzhen) Co., Ltd.
Shenyue United Investment
Property service fee 2,900,927.45 2,429,042.80
Co., Ltd.
Shenzhen Chuangke
Property service fee 1,516,908.38
Development Co., Ltd.
Shenzhen Guarantee Group
Property service fee 4,173,239.39 4,347,773.48
Co., Ltd.
Shenzhen Hi-tech Zone
Development Construction Co., Property service fee 2,391,764.60 1,844,495.70
Ltd.
Shenzhen Convention &
Exhibition Center Management Property service fee 8,741,565.84 6,587,040.80
Co., Ltd.
ShenZhen Special Economic
Zone Real Estate & Properties
(Group) Co., Ltd. and its
Property service fee 5,809,905.47 12,696,424.71
consolidated subsidiaries,
except where the context
otherwise requires
Shenzhen Talent Recruitment
Property service fee 444,280.42
International Co., Ltd.
Shenzhen Tsinghua University
Property service fee 1,376,718.19 351,203.22
Research Institute
Shenzhen Total Logistics
Property service fee 5,907,491.61 2,500,524.01
Service Co., Ltd.
Shenzhen Shenzhen Hong
Kong Science and Technology
Property service fee 3,153,538.10
Innovation Park Operation
Development Co., Ltd.
Shenzhen Shenzhen Hong
Kong Science and Technology
Property service fee 2,352,378.93 1,707,998.32
Innovation Cooperation Zone
Development Co., Ltd.
Shenzhen Urban Construction
Project payment 564,220.20
Mingyuan Industrial Co., Ltd.
Shenzhen Construction
Development (Group) Property service fee 136,971.70
Company
Shenzhen Large Industrial Zone
Project payment 263,350.35 4,124,594.71
(Shenzhen Export Processing
233
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Zone) Development
Management Group Co., Ltd.
Shenzhen Large Industrial Zone
(Shenzhen Export Processing
Property service fee 76,628.67 81,796.64
Zone) Development
Management Group Co., Ltd.
Shenzhen Fubao Industrial Park
Project payment 209,505.25 255,834.10
Operation Co., Ltd.
Shenzhen Fubao Industrial Park
Property service fee 140,690.29 98,543.56
Operation Co., Ltd.
Shenzhen Hi-tech Zone
Investment Development Group Property service fee 47,172.26
Co., Ltd.
Shenzhen Environmental
Protection Technology Group Project payment 90,016.79 212,270.67
Co., Ltd.
Shenzhen Environmental
Protection Technology Group Property service fee 5,857,237.41 6,269,868.04
Co., Ltd.
Shenzhen South Certification
Property service fee 74,213.21
Co., Ltd.
Shenzhen Shenfubao (Group)
Tianjin Industrial Development Property service fee 1,703,980.95 1,095,907.44
Co., Ltd.
Shenzhen Shenfubao (Group)
Tianjin Industrial Development Project payment 46,550.75
Co., Ltd.
Shenzhen Shenfubao (Group)
Tianjin Investment Property service fee 7,628,802.17 8,068,487.11
Development Co., Ltd.
Shenzhen Shenfubao (Group)
Project payment 1,328,615.05 1,330,275.23
Co., Ltd.
Shenzhen Shenfubao (Group)
Property service fee 4,558,105.71 4,785,217.03
Co., Ltd.
Shenzhen Shenfubao (Group)
Funding occupancy expense -233,337.05
Co., Ltd.
Shenzhen Shenfubao Eastern
Investment Development Co., Project payment 67,252.15
Ltd.
Shenzhen Shenfubao Eastern
Investment Development Co., Property service fee 483,048.37 170,701.27
Ltd.
Shenzhen Shentou Property
Supervision service fee 11,320.75
Development Co., Ltd.
Shenzhen Shantou Special
Cooperation Zone Branch of
Property service fee 21,247.49 22,050.00
Shenzhen Water Planning and
Design Institute Co., Ltd.
Shenzhen Special Zone
Property service fee 51,384.96
Literature Magazine Co., Ltd.
Shenzhen Sports Center
Operation Management Co., Property service fee 4,806,978.01 687,914.48
Ltd.
Shenzhen Investment Holdings
Property service fee 110,059.63
Development Co., Ltd.
Shenzhen Investment Building
Supervision service fee 70,754.72
Hotel Co., Ltd.
Shenzhen Investment Holdings
Project payment 186,843.22 7,209,951.08
Co., Ltd.
Shenzhen Investment Holdings
Commission management fee 1,886,792.46
Co., Ltd.
Shenzhen Investment Holdings
Property service fee 8,643,987.73 7,584,483.75
Co., Ltd.
Shenzhen Investment Holdings
Funding occupancy expense 174,206.14
Co., Ltd.
Shenzhen Bay Area Property service fee 5,432,881.86 75,100,961.12
234
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
International Hotel Co., Ltd.
Shenzhen Cultural Business
Property service fee 227,088.46
Development Co., Ltd.
Shenzhen Bay Wanli Hotel
Branch of Shenzhen Wuzhou Property service fee 338,650.32 360,707.44
Hotel Management Co., Ltd.
Shenzhen Bay Wanyi Hotel
Branch of Shenzhen Wuzhou Property service fee 220,010.13 235,915.67
Hotel Management Co., Ltd.
Shenzhen Xingye Logistics
Property service fee 11,009.18
Co., Ltd.
Shenzhen SME Venture Capital
Property service fee 872,990.19
Co., Ltd.
Shenzhen Bay (Baoding)
Innovation Development Co., Property service fee 579,370.16 354,142.48
Ltd.
Shenzhen Bay Technology
Property service fee 78,923,867.12 54,562,406.82
Development Co., Ltd.
Shenzhen Bay Area Urban
Construction and Development Project payment 686,767.33
Co., Ltd.
Shenzhen Bay Area Urban
Construction and Development Property service fee 2,525,782.31 2,977,659.03
Co., Ltd.
Shenzhen Xiangmihu
International Exchange Center Project payment 537,490.97 1,419,537.05
Development Co., Ltd.
Shenzhen Xiangmihu
International Exchange Center Property service fee 3,458,208.00 2,423,260.33
Development Co., Ltd.
Shenzhen Xingye Xingfa
Clothing Manufacturing Co., Property service fee 2,832,334.90
Ltd.
Shenzhen Infinova Limited Property service fee 463,319.77 289,916.74
Shenzhen Infinova Smart Park
Consultant service expense 1,859,676.00 512,000.00
Technology Co., Ltd.
China Shenzhen Foreign Trade
Property service fee 2,457,982.89 2,763,006.30
(Group) Corp. Ltd.
China Shenzhen Foreign Trade
Supervision service fee 424,528.30 618,867.93
(Group) Corp. Ltd.
Shenzhen City Construction
Industrial Park Development Property service fee 391,346.42
Co., Ltd.
Chengdu Zunxi Land Co., Ltd. Property service fee 1,152,459.02
Shenzhen Chenglong Real
Property service fee 395,685.75
Estate Development Co., Ltd.
Shenzhen Shenzhen Shantou
Special Cooperation Zone
Property service fee 508,184.64
SIHC Investment Development
Co., Ltd.
Dongguan SIHC Investment
Property service fee 1,784,025.19
Development Co., Ltd.
SIHC and its subsidiaries Catering Services 197,755.66
Notes to acquisition of goods and reception of labor service
In 2023, the catering service business with SIHC and a number of its subsidiaries was presented on a consolidated basis under the
caliber of " SIHC and its subsidiaries" due to the large number of parties involved and the small amount of transactions with a single
related party, which did not meet the criteria for separate disclosure.
(2) Information on Related-party Trusteeship/Contract
Lists of trusteeship/contract of the Company:
Unit: RMB
235
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Income
Name of the
Name of the recognized in
entrustee/ Type Start date Due date Pricing basis
entruster/contractee this Current
contractor
Period
ShenZhen
Shenzhen Shentou
Properties &
Property Investment 6 November 5 November
Resources Market pricing 61,640,558.21
Development Co., property 2019 2025
Development
Ltd.
(Group) Ltd.
Shenzhen
Shenzhen Shenfubao
Real Estate, 31 December
Shenfubao (Group) Property 1 January 2023 Market pricing 1,320,754.72
engineering 2023
Co., Ltd. Development
Co., Ltd.
Shenzhen
Shenzhen Fubao Shenfubao Property
31 December
Industrial Park Property maintenance 1 January 2023 Market pricing 27,192.08
2023
Operation Co., Ltd. Development project
Co., Ltd.
Shenzhen Free
Shenzhen
Trade Zone 31 December
Shenfubao (Group) Property 1 January 2023 Market pricing 1,420,000.00
Security Service 2023
Co., Ltd.
Co., Ltd.
Shenzhen
Shenzhen Shenfubao
31 December
Shenfubao (Group) Hydropower Property 1 January 2023 Market pricing 2,440,695.63
2023
Co., Ltd. Municipal
Service Co., Ltd.
Notes:
Lists of entrust/contractee
Unit: RMB
Charge
Name of the
Name of the recognized in
entrustee/ Type Start date Due date Pricing basis
entruster/contractee this current
contractor
period
Notes:
(3) Information on Related-party Lease
The Company was lessor:
Unit: RMB
The lease income confirmed in The lease income confirmed in
Name of lessee Category of leased assets
the current period the previous period
Shenzhen Bay Wanyi Hotel
Branch of Shenzhen Wuzhou Investment property 1,265,195.37 1,369,729.39
Hotel Management Co., Ltd.
Shenzhen Bay Wanli Hotel
Branch of Shenzhen Wuzhou Investment property 1,665,257.39 1,891,531.05
Hotel Management Co., Ltd.
The Company was lessee:
Unit: RMB
Variable lease
Rental expense of
payments that are not
Name of Category of simplified short-term Interest expense on
covered in the Rent payable Added right-of-use assets
lessor leased assets leases and low-value lease liabilities borne
measurement of the
asset leases (if applicable)
lease liabilities (if
236
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
applicable)
Amount Amount Amount Amount Amount Amount
Amount for Amount for Amount for Amount for
for the for the for the for the for the for the
the current the current the current the previous
previous current previous previous current previous
period period period period
period period period period period period
Shenzhen
Shentou 796,404.0 139,419.2
Investment
Property 614,554.40
property 0 3
Development
Co., Ltd.
Shenzhen
Investment
Investment
Building 820,296.12 66,547.40
property
Hotel Co.,
Ltd.
Shenzhen Hi-
tech Zone 104,160.0
Investment
Development 22,302.40 519,166.28 111,132.00 4,363.33 8,533.45
property 0
Construction
Co., Ltd.
Shenzhen
Large
Industrial
Zone
(Shenzhen
Export Investment
Processing property 11,256.87 3,690.77
Zone)
Development
Management
Group Co.,
Ltd.
ShenZhen
Special
Economic
Zone Real
Estate &
Properties
(Group) Co., Investment 1,782,328.1
Ltd. and its property 41,333.32 640,523.85 702,000.00 55,000.00 81,134.66 8,020.54
0
consolidated
subsidiaries,
except where
the context
otherwise
requires
Shenzhen
Shenfubao Investment 1,204,267.5
(Group) Co., property 231,660.00 28,809.46
7
Ltd.
Shenzhen -
Investment Investment 3,482,245. 192,376.3 153,717.8 7,825,665.7
Holdings Co., property 591,394.63 625,825.14 324,499.11 1,814,518.6
09 4 5 2
Ltd. 9
Shenzhen
Bay 1,119,654.3 1,132,586.
Investment
Technology
property 6 62
Development
Co., Ltd.
Shenzhen
Binjiang Investment
41,600.00
Industry Co., property
Ltd.
Notes:
(4) Information on Related-party Guarantee
The Company was guarantor:
Unit: RMB
Execution accomplished
Secured party Amount of guarantee Start date End date
or not
237
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
The Company was secured party
Unit: RMB
Execution accomplished
Guarantor: Amount of guarantee Start date End date
or not
Guoren P&C 82,093,413.89 26 June 2022 30 April 2024 No
Shenzhen Shendan
Zengxin Financing 16,750,000.00 29 March 2022 28 March 2025 No
Guarantee Co., Ltd.
Shenzhen Shendan
Zengxin Financing 36,850,000.00 29 March 2022 28 March 2026 No
Guarantee Co., Ltd.
Shenzhen Shendan
Zengxin Financing 13,400,000.00 29 March 2022 28 March 2027 No
Guarantee Co., Ltd.
Shenzhen Guarantee
1,684,498.43 December 29, 2023 29 December 2024 No
Group Co., Ltd.
Shenzhen Guarantee
2,895,117.51 1 May 2022 1 May 2023 Yes
Group Co., Ltd.
Notes:
(5) Information on Inter-bank Lending of Capital of Related Parties
Unit: RMB
Related parties Amount Start date Maturity date Note
Borrowing
Lending
(6) Information on Assets Transfer and Debt Restructuring by Related Party
Unit: RMB
Content of the related-party
Related parties Amount for the current period Amount for the previous period
transaction
Shenzhen Investment Holdings
Transfer of fixed assets 171,582.53
Co., Ltd.
Shenzhen Shenfubao (Group)
Acquisition of equity interest 86,923,058.15
Co., Ltd.
ShenZhen Special Economic
Zone Real Estate & Properties
Acquisition of equity interest 206,390,636.61
(Group) Co., Ltd. and Shenzhen
SPG Investment Co., Ltd.
China Shenzhen Foreign Trade
Acquisition of equity interest 20,902,006.86
(Group) Corp. Ltd.
(7) Information on Remuneration for Key Management Personnel
Unit: RMB
Item Amount for the current period Amount for the previous period
Remuneration for key management
12,312,227.12 15,149,368.18
personnel
(8) Other Related-party Transactions
6. Accounts Receivable and Payable of Related Party
(1) Accounts Receivable
Unit: RMB
238
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Ending balance Beginning balance
Project name Related parties
Carrying amount Bad debt provision Carrying amount Bad debt provision
Hebei Shenbao
Investment
Accounts receivable 27,085,777.03 812,573.31 15,856,697.13 475,700.91
Development Co.,
Ltd.
Shenzhen Shenyue
United Investment 4,407,622.21 240,783.73 1,545,493.83 46,364.81
Co., Ltd.
Shenzhen Chuangke
Development Co., 1,607,922.88 48,237.69
Ltd.
Shenzhen Guarantee
69,764.97 2,092.95
Group Co., Ltd.
Shenzhen Hi-tech
Zone Development
2,753,626.63 253,302.70 3,292,961.84 177,657.15
Construction Co.,
Ltd.
Shenzhen
Convention &
Exhibition Center 1,918,835.40 71,436.06 1,379,512.79 55,256.38
Management Co.,
Ltd.
ShenZhen Special
Economic Zone
Real Estate &
Properties (Group)
Co., Ltd. and its 12,659,861.03 2,147,549.43 10,072,563.13 674,112.86
consolidated
subsidiaries, except
where the context
otherwise requires
Shenzhen Tsinghua
University Research 57,574.31 1,727.23 113,107.19 3,393.22
Institute
Shenzhen Total
Logistics Service 608,792.15 18,263.76 779,745.46 23,392.36
Co., Ltd.
Shenzhen Shenzhen
Hong Kong Science
and Technology
Innovation Park 3,342,750.39 100,282.51
Operation
Development Co.,
Ltd.
Shenzhen Shenzhen
Hong Kong Science
and Technology
Innovation 372,253.03 11,167.59 114,435.00 3,433.05
Cooperation Zone
Development Co.,
Ltd.
Shenzhen Shenzhen
Shantou Special
Cooperation Zone
508,084.64 15,242.54
SIHC Investment
Development Co.,
Ltd.
Shenzhen City
Construction
Industrial Park 391,346.42 11,740.39
Development Co.，
Ltd.
Shenzhen 395,685.75 11,870.57
239
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Chenglong Real
Estate Development
Co, Ltd.
Shenzhen Large
Industrial Zone
(Shenzhen Export
Processing Zone) 480,229.65 64,846.89 1,811,138.85 104,774.17
Development
Management Group
Co., Ltd.
Shenzhen Fubao
Industrial Park 5,365.01 160.95 307,714.39 9,231.43
Operation Co., Ltd.
Shenzhen
Environmental
Protection 1,653,450.97 63,121.44 1,331,881.42 39,956.44
Technology Group
Co., Ltd.
Shenzhen
Transportation
Station 5.51 0.17
Development Co.,
Ltd.
Shenzhen
Shenfubao (Group)
Tianjin Industrial 1,604,015.82 66,998.26 917,263.67 66,998.66
Development Co.,
Ltd.
Shenzhen
Shenfubao (Group)
Tianjin Investment 3,255,544.36 155,467.93 2,454,324.58 88,615.34
Development Co.,
Ltd.
Shenzhen
Shenfubao (Group) 2,567,475.48 77,024.27 3,699,118.44 145,973.55
Co., Ltd.
Shenzhen
Shenfubao Eastern
Investment 55.70 1.67
Development Co.,
Ltd.
Shenzhen Shentou
Property
2,378,435.98 71,353.08 1,500,297.75 45,008.93
Development Co.,
Ltd.
Shenzhen
Investment Holdings 4,131,697.18 144,179.32 6,623,892.25 218,945.16
Co., Ltd.
Shenzhen Bay Area
International Hotel 51,312,666.65 1,539,380.00
Co., Ltd.
Shenzhen Cultural
Business
935.08 28.05
Development Co.,
Ltd.
Shenzhen Bay
(Baoding)
Innovation 156,427.62 4,692.83 116,061.39 3,481.84
Development Co.,
Ltd.
Shenzhen Bay
Technology
137,865,750.97 7,568,725.60 131,203,332.93 3,936,099.99
Development Co.,
Ltd.
Shenzhen
992,580.22 29,777.41 811,111.70 24,333.35
Xiangmihu
240
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
International
Exchange Center
Development Co.,
Ltd.
Shenzhen Infinova
Smart Park
1,391,838.00 41,755.14 320,000.00 9,600.00
Technology Co.,
Ltd.
China Shenzhen
Foreign Trade 24,500.00 6,600.00
(Group) Corp. Ltd.
Total 212,618,383.72 12,038,908.85 235,633,141.06 7,693,804.22
Hebei Shenbao
Investment
Contract assets 361,513.73 373,225.03
Development Co.,
Ltd.
Shenzhen Large
Industrial Zone
(Shenzhen Export
Processing Zone) 231,455.46 337,422.67
Development
Management Group
Co., Ltd.
Shenzhen Fubao
Industrial Park 26,457.15 26,457.15
Operation Co., Ltd.
Shenzhen
Environmental
Protection 28,385.93
Technology Group
Co., Ltd.
Shenzhen
Shenfubao (Group) 43,500.00 43,500.00
Co., Ltd.
Shenzhen
Shenfubao Eastern
Investment 14,704.85 14,649.15
Development Co.,
Ltd.
Shenzhen
Investment Holdings 133,597.44 139,004.56
Co., Ltd.
Shenzhen Bay Area
Urban Construction
50,169.55
and Development
Co., Ltd.
Shenzhen
Xiangmihu
International
14,806.94 46,418.86
Exchange Center
Development Co.,
Ltd.
Shenzhen Urban
Construction
18,450.00
Mingyuan Industrial
Co., Ltd.
Total 844,485.57 1,059,232.91
Shenzhen Hi-tech
Zone Development
Other receivables 167,086.43 10,525.99 121,714.92 5,080.85
Construction Co.,
Ltd.
Shenzhen
Convention &
Exhibition Center 1,000.00
Management Co.,
Ltd.
241
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
ShenZhen Special
Economic Zone
Real Estate &
Properties (Group)
Co., Ltd. and its 100,000.00 30,000.00 100,000.00 10,000.00
consolidated
subsidiaries, except
where the context
otherwise requires
Shenzhen Binjiang
10,000.00 300.00
Industry Co., Ltd.
Shenzhen Large
Industrial Zone
(Shenzhen Export
Processing Zone) 102,583.54 3,258.35 2,583.54 77.51
Development
Management Group
Co., Ltd.
Shenzhen Qianhai
Advanced
10,720,575.27 321,617.26 10,720,575.27 321,617.26
Information Service
Co., Ltd.1
Shenzhen
Shenfubao (Group) 81,264.60 2,437.94
Co., Ltd.
Shenzhen
Shenfubao Eastern
Investment 350,000.00 10,500.00
Development Co.,
Ltd.
Shenzhen Shentou
Property
81,233.00 81,233.00 81,233.00 81,233.00
Development Co.,
Ltd.
Shenzhen
Investment Holdings 685,740.90 157,127.32 685,740.90 112,893.70
Co., Ltd.
Shenzhen Xinhai
201,499,990.18 6,044,999.71 201,499,990.18 6,044,999.71
Holding Co., Ltd.
Shenzhen Xinhai
Rongyao Real
375,068,984.55 11,252,069.54 375,068,984.55 11,252,069.54
Estate Development
Co., Ltd.
Shenzhen Tianjun
10,000,000.00 10,000,000.00 0.00
Industrial Co., Ltd.
Shenzhen Bay
Technology
10,065,313.75 301,959.41 4,159,687.50 124,790.63
Development Co.,
Ltd.
Shenzhen Wufang
Ceramics Industrial 1,747,264.25 1,747,264.25 1,747,264.25 1,747,264.25
Co., Ltd.
China Shenzhen
Foreign Trade 3,734.83 373.48
(Group) Corp. Ltd.
Total 610,681,036.47 19,963,292.77 604,191,508.94 19,700,399.93
(2) Accounts Payable
Unit: RMB
Project name Related parties Ending carrying amount Beginning carrying amount
Shenzhen General Institute of
Accounts payable Architectural Design and 2,102,761.00 1,199,653.20
Research Co., Ltd.
242
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Shenzhen Shentou Property
889,007.87 787,002.77
Development Co., Ltd.
Shenzhen SDG Service Co.,
564,288.00 282,144.00
Ltd.
Shenzhen Infinova Renyong
25,203.84
Information Co., Ltd.
Shenzhen Qianhai Advanced
8,126,060.00 9,026,060.00
Information Service Co., Ltd.
Total 11,682,116.87 11,320,063.81
Shenzhen Guarantee Group
Other payables 1,494,841.29 1,494,841.29
Co., Ltd.
Shenzhen Talent Recruitment
147,132.37
International Co., Ltd.
Shenzhen Free Trade Zone Life
4,850.00 4,850.00
Service Co., Ltd.
Shenzhen Construction
Development (Group) 152,227.00
Company
Shenzhen Large Industrial Zone
(Shenzhen Export Processing
31,218.60
Zone) Development
Management Group Co., Ltd.
Shenzhen Foreign Service
1,101,949.83
Group Co., Ltd.
Shenzhen Fubao Industrial Park
11,579.00
Operation Co., Ltd.
Shenzhen South Certification
34,002.15
Co., Ltd.
Shenzhen Shenfubao (Group)
2,863,523.56 2,503,870.62
Co., Ltd.
Shenzhen Shenfubao Eastern
Investment Development Co., 117,693.11
Ltd.
Shenzhen Shentou Property
8,621,679.48 10,126,517.16
Development Co., Ltd.
Shenzhen Investment Holdings
868,934.14
Co., Ltd.
Shenzhen Cultural Business
773,680.00
Development Co., Ltd.
Shenzhen Bay Wanli Hotel
Branch of Shenzhen Wuzhou 687,525.00
Hotel Management Co., Ltd.
Shenzhen Bay Wanyi Hotel
Branch of Shenzhen Wuzhou 562,521.00
Hotel Management Co., Ltd.
Shenzhen SME Venture Capital
339,760.59
Co., Ltd.
Tian’an International Building
Property Management 5,214,345.90 5,214,345.90
Company of Shenzhen
China Shenzhen Foreign Trade
265,018.43
(Group) Corp. Ltd.
Shenzhen Bay Technology
143,003,641.12 179,966,045.36
Development Co., Ltd.
Shenzhen Bay Area Urban
Construction and Development 360,752.18 360,752.18
Co., Ltd.
Shenzhen Real Estate Jifa
42,296,665.14 42,296,665.14
Warehousing Co., Ltd.
Shenzhen Infinova Limited 144,219.02 144,219.02
Yangzhou Lvfa Real Estate Co.,
369,623,672.79 313,705,372.89
Ltd.
Total 574,884,143.71 559,654,767.55
243
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Note 1: The other receivables of the Company to Shenzhen Qianhai Advanced Information Service Co., Ltd. (hereinafter referred to
as “Qianhai Advanced”) are advance money paid in advance due to the demolition of Guanlan Bengling Project. According to the
joint and several guarantee commitment letter signed by Shenzhen Xinhai Rongyao Real Estate Development Co., Ltd., Xinhai
Rongyao is jointly and severally liable for the tax and interest advanced by the Company. Out of prudence, the Company's
transactions to Qianhai Advanced are disclosed.
7. Commitments of Related Party
8. Other
XV. Share-based 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. Share-Based Payment Expenses for the Period
□Applicable Not applicable
5. Modification and Termination of Share-based Payment
6. Other
XVI. Commitments and Contingency
1. Significant Commitments
Significant commitments on balance sheet date
Signed large amount contract under performing or to be performed
Item Amount of Current Period Same period of last year
Commitments signed but hasn’t been recognized in
2,528,685,973.91 2,661,507,526.23
large amount
2. Contingency
(1) Significant Contingency on Balance Sheet Date
(1) The action about transferring Jiabin Building contentious matter
In 1993, the Company signed Right of Development Transfer Contract of Jiabin Building with Shenzhen Jiyong Property
Development Co., Ltd. (hereinafter referred to as “Jiyong Company”). Since the contract was not effectively executed, the Company
subsequently filed a series of lawsuits against the parties involved in the project, but the outcome was not favorable to the Company.
Therefore, the Company calculated and withdrew bad-debt provisions for accounts receivable from Jiyong Company in full in past
years for the transfer of Jiabin Building. On October 31, 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 April 29, 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.
244
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
(2) 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 July 1, 2012 to January 31, 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 July 1, 2020 to January 31, 2021),
totaling RMB31,712,947.03; respondent 2 shall bear the attorney's fee of RMB30,000.00. The total amount of the above is
RMB45,209,290.84.
On August 21, 2022, the Arbitration Tribunal held the second hearing to inquire about the audit report issued by the third-party
auditor and the details of the case, on September 5, 2022, Jun & Partners responded to the Special Audit Report of Case No. 541 and
Case No. 1063. On 23 March and 24 March 2023, two arbitration awards were received respectively, and according to the conclusion
of arbitration awards, the High-tech Zone Branch should return approximately RMB540,000 of public revenue to the Owners'
Committee of Shenzhen Nanshan District Software Park (in spite of RMB32 million requested by the Owners' Committee); in regard
to the arbitration case between the ITC Technology Park Company and the Owners' Committee of Shenzhen Nanshan District
Software Park, all requests of the latter have been rejected by the arbitration tribunal (in spite of RMB13 million requested by the
Owners' Committee).
(3) Litigation case about Shenzhen Basepoint Intelligent Co., Ltd.
On 20 August 2017, Shenzhen Facility Management Community Technology Co., Ltd. signed a Software Service Contract with
China Merchants Property Intelligent Facility Management Platform. The company procured a RMB3 million facility management
system from Basepoint for the project (31 items). During delivery of the project, only 11 items of the system delivered by Basepoint
passed the acceptance inspection, leaving the full delivery unfinished. Therefore, the Company failed to reach a consensus with
Basepoint on payment, and the latter sued the Company in 2021, making RMB3 million of the Company's fund locked up. According
to the judgment of first instance on 10 August 2022, the Company should compensate RMB3 million to Basepoint. The Company
refused to accept the first instance judgment and instituted an appeal for second instance in 2022. The second instance was heard on
11 August 2023, and is awaiting judgment.
(4) Property management fee litigation case regarding Shenzhen Xuansheng Industrial Development Co., Ltd.
Haiwai Lianyi Building, No. 12 Yingchun Road, Luohu District, Shenzhen City, is partly owned by the United Front Work
Department of the Shenzhen Municipal Committee, and Shenzhen Jinhailian Property Management Co., Ltd. is authorized by the
United Front Work Department of the Shenzhen Municipal Committee to manage the property. On 31 December 2006, Jinhailian
and Shenzhen Xuansheng Industrial Development Co., Ltd. signed the Property Management Agreement of "Haiwai Lianyi
Building", which agreed that Xuan heng would provide property management services to Jinhailian and Jinhailian would pay the
corresponding property management fees to Xuansheng.
On 7 January 2020, Xuansheng signed the Agreement with Jinhailian and the outsider Shenzhen Shengxin Hotel Management Co.,
Ltd. and agreed that the three parties reached an agreement on the management fee, principal maintenance fee, and electricity fee
owed to Xuansheng from 1 July 2017 to 31 December 2019 on the 5th-8th floor of Haiwai Lianyi Building by Jinhailian as follows:
1. The management fee, principal The amount of maintenance fee and electricity fee is RMB696,033.73; 2. Jinhailian will return the
above arrears repayment date before 22 January 2020; 3. Out of friendly relationship, if Jinhailian cannot return the above arrears
before 22 January 2020, then Shengxin Hotel is willing to advance from the rent payable to Jinhailian; 4. If due to objective reasons,
Shengxin Hotel cannot complete the lease surrender, Xuansheng will refund this advance in total, and Jinhailian will still return the
outstanding amount. However, both Jinhailian and Shengxin Hotel failed to fulfill their payment obligations as agreed in the said
agreement. In this regard, Xuansheng issued a Notice of Demand for Payment of Arrears on 13 January 2022 and an Attorney's Letter
to Jinhailian on 15 August 2022, demanding to fulfill its obligation to pay a property management fee, principal maintenance fee, and
electricity fee totaling RMB696,033.73. On 1 September 2022, Xuansheng appealed to the Shenzhen Luohu District People's Court.
As of 31 December 2022, Jinhailian expects to pay RMB766,612.52 (including: property management fee, principal maintenance fee,
and electricity fee totaling RMB696,033.73 and overdue interest of RMB70,578.79).
On 12 January 2023, the People's Court of Luohu District, Shenzhen, issued a judgment of first instance, which ruled that Shenzhen
Jinhailian Property Management Co., Ltd. shall pay Shenzhen Xuansheng Industrial Development Co., Ltd. a total of
RMB696,033.73 for a property management fee, principal maintenance fee, and electricity fee for the period from 1 July 2017 to 31
December 2019, and interest for late payment. Jinhailian appealed against the result of the first trial. During the second trial
conducted on line, Shenzhen Intermediate People’s Court rejected all requests appealed by Jinhailian and upheld the judgment of the
first trial.
Shenzhen Xuansheng applied to the People’s Court of Luohu District for compulsory execution on 8 August 2023. On 14 August
2023, the Company received the execution notice (2023) Y03MZ No. 17352 from the People’s Court of Luohu District, which
required the Company to immediately perform the obligations determined by the effective legal instrument and bear the interest on
the debt during the delayed period of performance, the application for execution fee and other related expenses. After communicating
245
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
with the court, the Company was required to pay Shenzhen Xuansheng a total sum of RMB696,033.73 for property management fees,
building repair funds, and electricity expenses incurred between 1 July 2017 and 31 December 2019. As of 22 August 2023, we also
owed overdue interest amounting to RMB95,254.15 and delayed compounded interest totalling RMB3,532.37, bringing the grand
total payable amount to RMB794,820.25. Additionally, the Company was responsible for paying the first-instance court acceptance
fee of RMB5,733.06 at the People’s Court of Luohu District, along with the execution fee of case (2023) Y03MZ No. 17352, which
amounts to RMB10,405.53. In summary, the aggregate total of all these costs comes to RMB810,958.84.
In summary, adhering to the principles of respecting the law and accepting judgments, and with the aim to avoid the detrimental
impact on the Company's normal business operations due to potential compulsory enforcement measures such as bank account
freezing, we have agreed to and indeed made the payment in question. This decision also served to bring an end to the legal dispute
with Shenzhen Xuansheng. On 20 September 2023, the Company received a Notice of Case Closure for a Completed Enforcement
Matter fromthe People’s Court of Luohu District, effectively marking the conclusion of the case.
(5) Arbitration case concerning civil loan dispute of Shenzhen Rongyao Real Estate Development Co., Ltd.
Due to Xinhai Rongyao and Xinhai Holding's failure to repay principal and interest to Rongyao Real Estate on schedule, Rongyao
Real Estate has applied to the Shenzhen Court of International Arbitration for arbitration. The arbitral award orders Xinhai Rongyao
and Xinhai Holding to repay Rongyao Real Estate the full loan principal of RMB671,913,800 and corresponding interest (at an
annual interest rate of 11%, calculated based on the principal amount of RMB671,913,800 yuan from 4 August 2022 until the full
repayment of the loan; provisionally amounting to RMB49,068,400). The award further decides that Xinhai Investment, Urban
Construction Property Service Company, Lianghong Industry, and Tiancheng Investment shall bear joint and several liability for the
obligations and responsibilities of Xinhai Rongyao and Xinhai Holding under the first arbitration claim. It also decrees that all
respondents shall bear the attorney fees of RMB1.2 million paid by Rongyao Real Estate. Lastly, the award requires all respondents
to cover the full arbitration costs and property preservation expenses of this case. The provisional total amount owed currently stands
at RMB722,182,200.
On 4 May 2023, the Shenzhen Court of International Arbitration issued a Notice of Case Acceptance, and the filing process has since
been completed. Subsequently, the respondent initiated a proceeding at the Shenzhen Intermediate People's Court seeking
confirmation of the validity of the arbitration agreement, resulting in the Arbitration Institute temporarily suspending its hearing of
the case. After the court's review, the respondent's application was dismissed, and the arbitration proceedings will resume once the
Shenzhen Court of International Arbitration notifies all parties concerned to proceed with the arbitration process.
(6) Arbitration case concerning equity transfer dispute of ShenZhen Properties & Resources Development (Group) Ltd.
Due to the failure of Xinhai Rongyao to pay compensation for investment losses to Shenzhen Property Group as agreed, Shenzhen
Property Group has applied to the Shenzhen Court of International Arbitration for arbitration. It was ruled that Xinhai Rongyao must
pay RMB170,556,833.33 to Shenzhen Property Group as compensation for investment loss; that Sichuan Trust does not legally
possess the 1% equity interest registered in its name in Shenzhen Rongyao Real Estate Development Co., Ltd. And that Xinhai
Rongyao is the actual owner of this 1% equity interest; that Xinhai Rongyao must pledge and register its actually-held 31% equity
interest in Shenzhen Rongyao Real Estate Development Co., Ltd. to Shenzhen Property Group; that Sichuan Trust must cooperate in
facilitating the registration procedures for the pledge of the aforementioned 1% equity interest in Shenzhen Rongyao Real Estate
Development Co., Ltd.; that both Xinhai Rongyao and Sichuan Trust must bear the legal fees of RMB780,000 incurred by Shenzhen
Property Group; that Xinhai Rongyao and Sichuan Trust must cover all arbitration costs and property preservation expenses in this
case. The provisional total amount involved in these rulings amounts to RMB171,336,833.33.
The Shenzhen Court of International Arbitration issued the Notice of Case Acceptance on 14 April 2023, and the case was heard at
Shenzhen Court of International Arbitration on 14 December 2023, and is currently waiting for the decision.
(7) As a real estate developer, the Company provides mortgage loan guarantees and pays loan deposits for commercial housing
purchasers according to the operation practice of the real estate industry. By 31 December 2023, the balance of the deposit not
discharged with guarantee was RMB1,133,604.61, which would be discharged when the mortgage loans are paid off.
As a real estate developer, the Company provides mortgage loan guarantees for commercial housing purchasers according to the
operation practice of the real estate industry. By 31 December 2023, the balance of the deposit not discharged with guarantee was
RMB211,064,285.20, 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
XVII. Events after Balance Sheet Date
1. Significant Non-adjustment Matters
Unit: RMB
246
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Influence number to the
Reason of inability to estimate
Item Contents financial position and operating
influence number
results
2. Distribution of Profit
Amount to be distributed for every ten shares (RMB) 3.12
Amount to be distributed for every ten shares after consideration
3.12
and approval (RMB)
3. Sales Return
4. Notes to Other Events after Balance Sheet Date
Distribution of profit after the balance sheet date
On 29 March 2024, the 25th meeting of the 10th Board of Directors of the Company approved the profit distribution plan for 2023 as
follows: a cash dividend of RMB3.12 (tax included) for every 10 shares are to be paid to all shareholders on the basis of 595,979,092
shares in total at the end of 2023. The total cash dividends will be RMB185,945,476.70, and the remaining undistributed profits will
be carried forward to the next year. The plan will be implemented after approval by the Shareholders' Meeting.
XVIII. Other Significant Matters
1. The Accounting Errors Correction in Previous Period
(1) Retrospective Restatement
Unit: RMB
Name of the influenced report
Content Processing program Accumulative impact
items during comparison 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
Income tax
Item Revenue Costs Total profit Net profit attributable to
expense
owners of the
Company as the
parent
247
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Other notes:
6. Segment Information
(1) Determination Basis and Accounting Policies of Reportable Segment
In accordance with the internal organization structure, management requirements and internal report system, the
Company identifies the reportable segment based on the business segment, and assesses the operational
performance of real estate sales, property management and lease 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 House leasing Offset among
Item Real estate business Total
management business segment
Operating Revenue 1,234,537,188.62 1,578,719,323.98 151,860,512.44 2,965,117,025.04
Operating cost 818,496,053.38 1,316,777,091.32 98,252,237.79 2,233,525,382.49
Total assets 14,465,264,793.80 1,974,828,270.01 547,969,004.28 16,988,062,068.09
Total liabilities 10,591,038,446.03 1,548,292,274.22 145,006,312.03 12,284,337,032.28
(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
XIX. Notes of Main Items in the Financial Statements of the Company as the Parent
1. Accounts Receivable
(1) Disclosure by Aging
Unit: RMB
Aging Ending carrying amount Beginning carrying amount
Within one year (including 1 year) 123,156,033.99 4,013,380.50
One to two years 1,024,931.55 1,312,285.45
Two to three years 716,023.90 9,756.09
More than three years 96,824,380.44 96,814,624.35
Three to four years 9,756.09 112,354.95
Four to five years 112,354.95
Over 5 years 96,702,269.40 96,702,269.40
Total 221,721,369.88 102,150,046.39
248
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
(2) Disclosure by Withdrawal Methods for Bad Debts
Unit: RMB
Ending balance Beginning balance
Category Carrying amount Bad debt provision Carrying amount Bad debt provision
Carrying Carrying
Withdrawal value Withdrawal value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Accounts
receivable
withdrawal 98,246,909.9 98,246,909. 96,702,26
of Bad debt 44.31% 100.00% 0.00 96,702,269.40 94.67% 100.00% 0.00
provision 4 94 9.40
separately
accrued
Of which:
Accounts
receivable
withdrawal 123,474,459. 3,445,301.1 120,029,158 310,734.2 5,137,042
of bad debt 55.69% 2.79% 5,447,776.99 5.33% 5.70%
94 6 .78 8 .71
provision of
by group
Of which:
221,721,369. 101,692,21 120,029,158 102,150,046.3 97,013,00 5,137,042
Total 100.00% 45.86% 100.00% 94.97%
88 1.10 .78 9 3.68 .71
Bad debt provision separately accrued: RMB98,246,909.94
Unit: RMB
Beginning balance Ending balance
Name Bad debt Bad debt Withdrawal Reason for
Carrying amount Carrying amount
provision provision proportion withdraw
Shenzhen Jiyong
Properties & Involved in
Resources 93,811,328.05 93,811,328.05 93,811,328.05 93,811,328.05 100.00% lawsuit and
Development unrecoverable
Company
Luohu District
Long aging and
Economic
54,380.35 54,380.35 54,380.35 54,380.35 100.00% expected
Development
unrecoverable
Company
Shenzhen Tewei
Long aging and
Industry Co.,
2,836,561.00 2,836,561.00 2,836,561.00 2,836,561.00 100.00% expected
Ltd. (Chenhui
unrecoverable
Building)
Individually
immaterial but Involved in
individually 1,544,640.54 1,544,640.54 100.00% lawsuit and
provided for bad unrecoverable
debts
Withdrawal of bad debt provision by group: 3445301.16
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Portfolio of credit risk features 111,348,682.81 3,445,301.16 3.09%
Government portfolio 12,125,777.13
Total 123,474,459.94 3,445,301.16
Notes to the determination basis for the group:
If adopting the general mode of expected credit loss to withdraw bad debt provision of accounts receivable:
□Applicable Not applicable
249
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
(3) Bad Debt Provision Withdrawal, Reversed or Recovered in the Current Period
Withdrawal of bad debt provision:
Unit: RMB
Changes in the current period
Beginning
Category Reversed or Ending balance
balance Withdrawal Verification Others
recovered
Bad debt
provision 96,702,269.40 1,544,640.54 98,246,909.94
accrued by item
Withdrawal of
bad debt
310,734.28 3,134,566.88 3,445,301.16
provision by
group
Total 97,013,003.68 4,679,207.42 101,692,211.10
Of which significant amount of recovered or transferred-back bad debt provision for the current period:
Unit: RMB
Basis and rationality of
Amount reversed or determining the original
Name of the entity Reason for reversal Way of recovery
recovered withdrawal proportion of
bad debt provision
(4) Accounts Receivable Written-off in Current Period
Unit: RMB
Item Written-off amount
Of which the verification of significant accounts receivable:
Unit: RMB
Verification Whether occurred
Reason for
Name of the entity Nature Written-off amount procedures because of related-
verification
performed party transactions
Notes to verification of accounts receivable:
(5) Top 5 of the Ending Balance of the Accounts Receivable and the Contract Assets Collected according to
Arrears Party
Unit: RMB
Ending balance of
bad debt provision
Proportion to total
Ending balance of of accounts
Ending balance of Ending balance of ending balance of
Name of the entity accounts receivable receivable and
accounts receivable contract assets accounts receivable
and contract assets impairment
and contract assets
provision for
contract assets
Shenzhen Futian
109,392,112.37 109,392,112.37 49.33% 3,281,763.37
Talent Anju Co., Ltd.
Shenzhen Jiyong
Properties &
Resources 93,811,328.05 93,811,328.05 42.31% 93,811,328.05
Development
Company
Shenzhen Futian
District Government 12,125,777.13 12,125,777.13 5.47%
Property
250
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Management Centre
Shenzhen Tewei
2,836,561.00 2,836,561.00 1.28% 2,836,561.00
Industry Co., Ltd.
Shenzhen Feihuang
769,919.05 769,919.05 0.35% 769,919.05
Industrial Co., Ltd.
Total 218,935,697.60 218,935,697.60 98.74% 100,699,571.47
2. Other Receivables
Unit: RMB
Item Ending balance Beginning balance
Dividend receivable 151,433,108.41
Other receivables 4,489,713,785.01 5,010,963,761.04
Total 4,489,713,785.01 5,162,396,869.45
(1) Interest Receivable
1) Category of Interest Receivable
Unit: RMB
Item Ending balance Beginning balance
2) Significant Overdue Interest
Unit: RMB
Whether occurred
Entity Ending balance Overdue time Overdue reason impairment and its
judgment basis
Other notes:
3) Disclosure by Withdrawal Methods for Bad Debts
□Applicable Not applicable
4) Bad Debt Provision Withdrawal, Reversed or Recovered in the Current Period
Unit: RMB
Changes in the current period
Beginning
Category Reversed or Charged- Ending balance
balance Withdrawal Other changes
recovered off/Written-off
Of which significant amount of recovered or transferred-back bad debt provision for the current period:
Unit: RMB
Basis and rationality of
Amount reversed or determining the original
Name of the entity Reason for reversal Way of recovery
recovered withdrawal proportion of
bad debt provision
Other notes:
5) Interest Receivable Written-off in Current Period
Unit: RMB
Item Written-off amount
Of which the verification of significant interest receivable:
Unit: RMB
251
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Verification Whether occurred
Reason for
Name of the entity Nature Written-off amount procedures because of related-
verification
performed party transactions
Notes to verification:
Other notes:
(2) Dividend Receivable
1) Category of Dividend Receivable
Unit: RMB
Project (or investee) Ending balance Beginning balance
SZPRD Urban Renewal Co., Ltd. 151,433,108.41
Total 151,433,108.41
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) Disclosure by Withdrawal Methods for Bad Debts
□Applicable Not applicable
4) Bad Debt Provision Withdrawal, Reversed or Recovered in the Current Period
Unit: RMB
Changes in the current period
Beginning
Category Reversed or Charged- Ending balance
balance Withdrawal Other changes
recovered off/Written-off
Of which significant amount of recovered or transferred-back bad debt provision for the current period:
Unit: RMB
Basis and rationality of
Amount reversed or determining the original
Name of the entity Reason for reversal Way of recovery
recovered withdrawal proportion of
bad debt provision
Other notes:
5) Dividends Receivable Written-off in Current Period
Unit: RMB
Item Written-off amount
Of which the verification of significant dividends receivable:
Unit: RMB
Verification Whether occurred
Reason for
Name of the entity Nature Written-off amount procedures because of related-
verification
performed party transactions
Notes to verification:
252
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Other notes:
(3) Other Receivables
1) Category of Other Receivables by Account Nature
Unit: RMB
Nature Ending carrying amount Beginning carrying amount
Guaranteed deposit 2,555,194.00 2,537,789.00
Payment on behalf 39,020.00
External intercourse funds 134,608,516.50 23,374,171.34
Intercourse funds to subsidiary 4,383,952,304.98 5,017,542,623.59
Total 4,521,155,035.48 5,043,454,583.93
2) Disclosure by Aging
Unit: RMB
Aging Ending carrying amount Beginning carrying amount
Within one year (including 1 year) 4,489,358,790.65 5,011,106,446.45
One to two years 336,882.00 51,049.05
Two to three years 35,449.05 69,600.00
More than three years 31,423,913.78 32,227,488.43
Three to four years 69,600.00
Four to five years 50,000.00
Over 5 years 31,354,313.78 32,177,488.43
Total 4,521,155,035.48 5,043,454,583.93
3) Disclosure by Withdrawal Methods for Bad Debts
Unit: RMB
Ending balance Beginning balance
Category Carrying amount Bad debt provision Carrying amount Bad debt provision
Carrying Carrying
Withdrawal value Withdrawal value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Bad debt
provision 127,631,56 22,485,536. 105,146,02 126,148,0 23,592,842. 102,555,208
separately 2.82% 17.62% 2.50% 18.70%
2.61 08 6.53 50.95 54 .41
accrued
Of which:
Withdraw
al of bad 4,393,523, 8,955,714.3 4,384,567,7 4,917,306, 8,897,980.3 4,908,408,5
debt 97.18% 0.20% 97.50% 0.18%
provision 472.87 9 58.48 532.98 5 52.63
by group
Of which:
4,521,155, 31,441,250. 4,489,713,7 5,043,454, 32,490,822. 5,010,963,7
Total 100.00% 0.70% 100.00% 0.64%
035.48 47 85.01 583.93 89 61.04
Bad debt provision separately accrued: RMB22,485,536.08
Unit: RMB
Beginning balance Ending balance
Name Bad debt Bad debt Withdrawal Reason for
Carrying amount Carrying amount
provision provision proportion withdraw
Shum Yip Long-term
109,666,108.82 7,110,900.41 111,203,099.25 6,057,072.72 5.45%
Properties uncollectible
253
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Development
Co., Ltd.
Dameisha Long-term
2,576,445.69 2,576,445.69 2,576,445.69 2,576,445.69 100.00%
Tourism Centre uncollectible
Hong Kong
Hang Yue
Development Long-term
3,271,837.78 3,271,837.78 3,271,837.78 3,271,837.78 100.00%
Company uncollectible
Limited (Wuyao
Company)
Elevated train Long-term
2,542,332.43 2,542,332.43 2,542,332.43 2,542,332.43 100.00%
project uncollectible
Shanghai Yutong
Long-term
Real Estate Co., 5,676,000.00 5,676,000.00 5,676,000.00 5,676,000.00 100.00%
uncollectible
Ltd.
Individually
immaterial but
Long-term
individually 2,415,326.23 2,415,326.23 2,361,847.46 2,361,847.46 100.00%
uncollectible
provided for bad
debts
Total 126,148,050.95 23,592,842.54 127,631,562.61 22,485,536.08
Withdrawal of bad debt provision by group: 8,955,714.39
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Within one year (including 1
260,459.14 7,813.77 3.00%
year)
1-2 years (including 2 years) 336,882.00 33,688.20 10.00%
2-3 years (including 3 years) 35,449.05 10,634.72 30.00%
3-4 years (including 4 years) 69,600.00 34,800.00 50.00%
4-5 years (including 5 years)
Over 5 years 8,868,777.70 8,868,777.70 100.00%
Total 9,571,167.89 8,955,714.39
Notes to the determination basis for the group:
Withdrawal of bad debt provision by adopting the general mode of expected credit loss:
Unit: RMB
First stage Second stage Third stage
Expected loss in the
Bad debt provision Expected loss in the Total
Expected credit loss in duration (credit
duration (credit
the next 12 months impairment not
impairment occurred)
occurred)
Balance of 1 January
8,997,495.81 23,493,327.08 32,490,822.89
2023
Balance of 1 January
2023 in the current
period
Withdrawal of the
57,734.04 57,734.04
current period
Amount transferred-back
-53,478.77 -1,053,827.69 -1,107,306.46
for the current period
254
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Balance of 31 December
9,001,751.08 22,439,499.39 31,441,250.47
2023
The basis for the division of each stage and the withdrawal proportion of bad debt provision
Changes of carrying amount with significant amount changed of loss provision in the current period
□Applicable Not applicable
4) Bad Debt Provision Withdrawn, Reversed or Recovered in the Current Period
Withdrawal of bad debt provision:
Unit: RMB
Changes in the current period
Beginning
Category Reversed or Charged- Ending balance
balance Withdrawal Others
recovered off/Written-off
Other receivables 32,490,822.89 -1,049,572.42 31,441,250.47
Total 32,490,822.89 -1,049,572.42 31,441,250.47
Of which the bad debt provision recovered or transferred-back with significant amount during the current period:
Unit: RMB
Basis and rationality of
Amount reversed or determining the original
Name of the entity Reason for reversal Way of recovery
recovered withdrawal proportion of
bad debt provision
5) Particulars of the Actual Verification of Other Receivables during the Current Period
Unit: RMB
Item Written-off amount
Of which the verification of significant other receivables:
Unit: RMB
Verification Whether occurred
Reason for
Name of the entity Nature Written-off amount procedures because of related-
verification
performed party transactions
Notes to the verification of other receivables:
6) Top 5 of the Ending Balance of Other Receivables Collected according to the Arrears Party
Unit: RMB
Proportion to total
Ending balance of
Name of the entity Nature Ending balance Aging ending balance of
bad debt provision
other receivables %
Dongguan Wuhe
Intra-company funds 2,113,760,170.00 Within 1 year 46.75%
Real Estate Co., Ltd.
Shenzhen
Intra-company funds 1,471,000,000.00 Within 1 year 32.54%
Guangming Wuhe
255
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Real Estate Co., Ltd.
Yangzhou Wuhe
Intra-company funds 750,436,602.93 Within 1 year 16.60%
Real Estate Co., Ltd.
SZPRD Xuzhou
Dapeng Real Estate
Intra-company funds 41,346,763.61 Within 1 year 0.91%
Development Co.,
Ltd.
Shum Yip Properties
Development Co., Intra-company funds 111,203,099.25 Over 5 years 2.46% 6,057,072.72
Ltd.
Total 4,487,746,635.79 99.26% 6,057,072.72
7) Presentation in Other Receivables due to the Centralized Management of Funds
Unit: RMB
Other notes:
3. Long-term Equity Investment
Unit: RMB
Ending balance Beginning balance
Item Impairment Impairment
Carrying amount Carrying value Carrying amount Carrying value
provision provision
Investment to
1,356,325,401.10 65,834,000.00 1,290,491,401.10 1,436,329,880.39 68,364,000.00 1,367,965,880.39
subsidiaries
Investment to
joint ventures
103,041,364.69 18,983,614.14 84,057,750.55 98,765,051.45 18,983,614.14 79,781,437.31
and associated
enterprises
Total 1,459,366,765.79 84,817,614.14 1,374,549,151.65 1,535,094,931.84 87,347,614.14 1,447,747,317.70
(1) Investment to Subsidiaries
Unit: RMB
Beginning Increase/decrease for the current period Ending
Beginning
balance of Withdrawal of Ending balance balance of
Investee balance (carrying Additional Reduced
depreciation impairment Others (Carrying value) depreciation
value) investment investment
reserve provision reserve
Shenzhen
Huangcheng
35,552,671.93 35,552,671.93
Real Estate
Co., Ltd.
Shenzhen
Wuhe
Industry
44,950,000.00 44,950,000.00
Investment
Development
Co., Ltd.
SZPRD
Yangzhou
Real Estate 50,000,000.00 50,000,000.00
Development
Co., Ltd.
Dongguan
ITC
Changsheng
20,000,000.00 20,000,000.00
Real Estate
Development
Co., Ltd.
Shenzhen
International
195,337,851.23 195,337,851.23
Trade Center
Property
256
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Management
Co., Ltd.
Shenzhen
Property
Engineering
and 3,000,000.00 3,000,000.00
Construction
Supervision
Co., Ltd.
SZPRD
Commercial
63,509,120.32 63,509,120.32
Operation
Co., Ltd.
Zhanjiang
Shenzhen
Real Estate 2,530,000.00 2,530,000.00
Development
Co., Ltd.
Shum Yip
Properties
15,834,000.00 15,834,000.00
Development
Co., Ltd.
SZPRD
Xuzhou
Dapeng Real
50,000,000.00 50,000,000.00
Estate
Development
Co., Ltd.
Shenzhen
Rongyao Real
Estate 508,000,000.00 508,000,000.00
Development
Co., Ltd.
SZPRD
Urban
77,474,479.29 77,474,479.29
Renewal Co.,
Ltd.
Dongguan
Wuhe Real
50,000,000.00 50,000,000.00
Estate Co.,
Ltd.
Shenzhen
Guangming
Wuhe Real 50,000,000.00 50,000,000.00
Estate Co.,
Ltd.
Shenzhen
Wuhe Urban
236,641,757.62 236,641,757.62
Renewal Co.,
Ltd.
Yangzhou
Wuhe Real
33,500,000.00 33,500,000.00
Estate Co.,
Ltd.
Total 1,367,965,880.39 68,364,000.00 80,004,479.29 1,290,491,401.10 65,834,000.00
(2) Investment to Joint Ventures and Associated Enterprises
Unit: RMB
Increase/decrease for the current period
Beginning Beginning Gains and Ending Ending
Cash
balance balance of losses Adjustment of Withdrawal balance balance of
Investee Changes bonus or
(carrying depreciation Additional Reduced recognized other of (Carrying depreciation
of other profits Others
value) reserve investment investment under the comprehensive impairment value) reserve
equity announced
equity income provision
to issue
method
I. Joint ventures
Shenzhen
Real Estate
Jifa 44,730,585.30 3,335,233.21 48,065,818.51
Warehousing
Co., Ltd.
Tian’an 7,037,952.30 12,985.03 7,050,937.33
257
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
International
Building
Property
Management
Company of
Shenzhen
Subtotal 51,768,537.60 3,348,218.24 55,116,755.84
II. Associated enterprises
Shenzhen
Wufang
Ceramics 18,983,614.14 18,983,614.14
Industrial
Co., Ltd.
CSCEC
Intelligent
Parking 28,012,899.71 991,215.00 63,120.00 28,940,994.71
Technology
Co., Ltd.
Subtotal 28,012,899.71 18,983,614.14 991,215.00 63,120.00 28,940,994.71 18,983,614.14
Total 79,781,437.31 18,983,614.14 4,339,433.24 63,120.00 84,057,750.55 18,983,614.14
The recoverable amount is determined based on the net amount of the fair value minus disposal costs
□Applicable Not applicable
The recoverable amount is determined by the present value of the forecasted future cash flow.
□Applicable Not applicable
The reason for the discrepancy between the foregoing information and the information used in the impairment tests in prior years or
external information
The reason for the discrepancy between the information used in the Company's impairment tests in prior years and the actual
situation of those years
(3) Other Notes
4. Operating Revenue and Cost of Sales
Unit: RMB
Amount for the current period Amount for the previous period
Item
Revenue Cost Revenue Cost
Principal business 1,036,514,608.68 790,579,825.41 56,064,949.33 44,999,240.65
Others 17,294,746.27 19,421,465.41
Total 1,053,809,354.95 790,579,825.41 75,486,414.74 44,999,240.65
Breakdown information of operating income and operating cost:
Unit: RMB
Segment 1 Segment 2 Total
Category of
contracts Operating Operating Operating Operating Operating Operating
Operating cost Operating cost
Revenue Revenue cost Revenue cost Revenue
Business
1,053,809,354.95 790,579,825.41 1,053,809,354.95 790,579,825.41
Type
Of which:
Real estate
sales 977,069,378.47 739,184,462.23 977,069,378.47 739,184,462.23
business
House
leasing 76,739,976.48 51,395,363.18 76,739,976.48 51,395,363.18
business
Classification
258
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
by operating
region
Of which:
Shenzhen 1,053,809,354.95 790,579,825.41 1,053,809,354.95 790,579,825.41
Market or
customer
type
Of which:
Contract type
Of which:
Classification
by time of
commodity
transfer
Of which:
Classification
by contract
term
Of which:
Classification
by sales
channel
Of which:
Total 1,053,809,354.95 790,579,825.41 1,053,809,354.95 790,579,825.41
Information about performance obligations:
Funds Type of quality
Nature of goods
Timing of Whether or not undertaken by assurance
that the
fulfilment of Important the person the Company provided by the
Item Company is
performance payment terms primarily expected to be Company and
committed to
obligations responsible returned to related
transfer
customers obligations
Other notes:
The income of the parent company in current period was income from the sale of real estate and the rental 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 RMB__ was expected to be recognized in __, RMB__ was expected to be recognized
in __, and RMB__ was expected to be recognized in __.
Significant contract changes or significant transaction price adjustments
Unit: RMB
Item Accounting treatment Amount of impact on revenue
Other notes:
5. Investment Income
Unit: RMB
Item Amount for the current period Amount for the previous period
259
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Long-term equity investment income
151,433,108.41
accounted by cost method
Long-term equity investment income
4,339,433.24 2,040,461.81
accounted by equity method
Income from the disposal of long-term
757,435,475.21
equity investments
Entrusted loans interest 159,934,119.41
Total 761,774,908.45 313,407,689.63
6. Other
XX. Supplementary Materials
1. Items and Amounts of Non-recurring Profit or Loss
Applicable □Not applicable
Unit: RMB
Item Amount Note
Gains and losses on disposal of non- Mainly attributable to the receipt of equity
702,127,250.52
current assets transfer
Government grants recognized in profit or
loss for the current period (except for
government grants closely related to the
Company's normal operating business, in
7,802,977.21
compliance with national policies and in
accordance with defined criteria, and
having a continuous impact on the
Company's profit or loss)
Other non-operating income and expense
-2,773,489.32
other than the above
Other items of profit or loss that meet the Mainly attributable to the value-added tax
5,684,844.32
definition of non-operating profit or loss credits and deductions
Less: Income tax effects 76,182,752.47
Effects of the minority shareholders' equity
284,222.25
(net of tax)
Total 636,374,608.01 --
Details of other profit and loss items in line with the definition of non-recurring gains and losses:
Applicable □ Not applicable
This is mainly due to the fact that the VAT plus credit preferential policy is valid until 31 December 2023, and this gain does not have
a sustained impact on the Company's profit or loss.
There are no other profit and loss items in line with the definition of non-recurring gains and losses in the Company.
Note to defining the non-recurring profit and loss items listed in the Explanatory Notice of Information Disclosure by Companies
Offering Securities to the Public No. 1 - Non-recurring Profit and Loss Items as recurring profit and loss items
□Applicable Not applicable
2. Return on Equity and Earnings Per Share
EPS
Profit as of reporting period Weighted average ROE (%)
EPS-basic EPS-diluted
Net profit attributable to
ordinary shareholders of the 10.26% 0.7786 0.7786
Company
Net profit attributable to
-3.81% -0.2892 -0.2892
ordinary shareholders of the
260
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2023
Company after deduction of
non-recurring profit or loss
3. Accounting Data Differences under PRC GAAP and Those under IFRSs
(1) Differences between Disclosed Net Profits and Net Assets in Financial Report in accordance with
International Accounting Standards and Chinese Accounting Standards
□Applicable Not applicable
(2) Differences between Disclosed Net Profits and Net Assets in Financial Report in accordance with
Domestic Accounting Standards and Chinese Accounting Standards
□Applicable Not applicable
(3) Explain Reasons for the Differences between Accounting Data Under Domestic and Overseas
Accounting Standards; for Any Adjustment Made to the Difference Existing in the Data Audited by the
Foreign Auditing Agent, Such Foreign Auditing Agent's Name Shall Be Clearly Stated.
4. Others
261
