ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
SHENZHEN PROPERTIES & RESOURCES
DEVELOPMENT (GROUP) LTD.
ANNUAL REPORT 2022
(Announcement No. 2023-02)
March 2023
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Table of Contents
Part I Important Notes, Table of Contents and Definitions........................................................... 3
Part II Corporate Information and Key Financial Information................................................... 6
Part III Management Discussion and Analysis..............................................................................11
Part IV Corporate Governance.......................................................................................................44
Part V Environmental and Social Responsibility.......................................................................... 68
Part VI Significant Events............................................................................................................... 71
Part VII Share Changes and Shareholder Information................................................................85
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 2022
Part I Important Notes, Table of Contents and Definitions
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of ShenZhen Properties & Resources Development
(Group) Ltd. (hereinafter referred to as the “Company”) hereby guarantee the factuality,
accuracy and completeness of the contents of this Report and its summary, and shall be
jointly and severally liable for any misrepresentations, misleading statements or material
omissions therein.
Liu Shengxiang, the Company’s legal representative, Cai Lili, the Company’s head of
financial affairs, and Liu Qiang, head of the Company’s financial department (equivalent to
financial manager) hereby guarantee that the Financial Statements carried in this Report
are factual, accurate and complete.
All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.
The Company is subject to the information disclosure requirements for the real estate
industry in the Self-Disciplinary and Regulatory Guideline No. 3 of the Shenzhen Stock
Exchange for Listed Companies—Industry-specific Information Disclosure.
The Company has described in detail in this Report the possible risks facing it, along with
countermeasures. Please refer to the section headed “Prospects” of “Part III Management
Discussion and Analysis” of this Report.
The Board has approved a final dividend plan as follows: based on the share capital of
595,979,092 shares, a cash dividend of RMB3.61 (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 2022
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 2022
Definitions
Term Definition
ShenZhen Properties & Resources Development (Group) Ltd. and its
The “Company”, the “Group”, “SZPRD” or “we”
consolidated subsidiaries, except where the context otherwise requires
SIHC Shenzhen Investment Holdings Co., Ltd.
Huangcheng Real Estate Shenzhen Huangcheng Real Estate Co., Ltd.
Dongguan Company Dongguan ITC Changsheng Real Estate Development Co., Ltd.
Xuzhou Company SZPRD Xuzhou Dapeng Real Estate Development Co., Ltd.
Yangzhou Company SZPRD Yangzhou Real Estate Development Co., Ltd.
Urban Renewal Company Shenzhen SZPRD Urban Renewal Co., Ltd.
Rongyao Real Estate Shenzhen Rongyao Real Estate Development Co., Ltd.
ITC Property Management Shenzhen International Trade Center Property Management Co., Ltd.
ITC Technology Park Shenzhen ITC Technology Park Service Co., Ltd.
Guomaomei Life Shenzhen Guomaomei Life Service Co., Ltd.
Commercial Operation Company Shenzhen SZPRD Commercial Operation Co., Ltd.
Guomao Catering Shenzhen Guomao Catering Co., Ltd.
Supervision Company Shenzhen Property Engineering and Construction Supervision Co., Ltd.
Wuhe Company Shenzhen Wuhe Industry Investment Development Co., Ltd.
Shenzhen Property Management Shenzhen Property Management Co., Ltd.
Foreign Trade Property Management Shenzhen Foreign Trade Property Management Co., Ltd.
Shenfubao Property Development Shenzhen Shenfubao Property Development Co., Ltd.
Hydropower Company Shenzhen Shenfubao Hydropower Municipal Service Co., Ltd.
Security Service Company Shenzhen Free Trade Zone Security Service Co., Ltd.
FMC Shenzhen Facility Management Community Technology Co., Ltd.
Expressed in the Chinese currency of Renminbi, expressed in tens of
RMB, RMB’0,000, RMB’00,000,000
thousands of Renminbi, expressed in hundreds of millions of Renminbi
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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 2022
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, SZMD Finance Center, southwest of junction of Fuzhong Third Road
Office address and Pengcheng 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:
Business combination involving entities under common control.
2022-over-2021
2021 2020
2022 change (%)
Before Restated Restated Before Restated
Operating 3,708,669,046. 4,491,965,643. 4,911,120,528. 4,104,374,646. 4,437,897,011.
-24.48%
revenue (RMB) 85 71 33 02 98
Net profit
1,003,969,842. 1,025,380,909.
attributable to 537,664,698.69 -47.56% 798,572,121.74 796,641,256.96
the listed 33 03
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
company’s
shareholders
(RMB)
Net profit
attributable to
the listed
company’s
shareholders 390,440,612.64 983,778,096.90 983,778,096.90 -60.31% 788,377,322.39 788,377,322.39
before
exceptional
gains and losses
(RMB)
Net cash
generated - -
from/used in
105,233,103.86 1,813,313,008. 1,828,979,752. 105.75% 385,497,782.12 363,576,236.57
operating
activities 58 45
(RMB)
Basic earnings
per share 0.9022 1.6846 1.7205 -47.56% 1.3399 1.3367
(RMB/share)
Diluted
earnings per
0.9022 1.6846 1.7205 -47.56% 1.3399 1.3367
share
(RMB/share)
Weighted
average return 12.37% 24.69% 24.49% -12.12% 23.47% 22.53%
on equity (%)
Change of 31
December 2022
31 December 31 December 2021 over 31 31 December 2020
2022 December 2021
(%)
Before Restated Restated Before Restated
Total assets 15,800,287,610 14,581,897,151 14,835,846,843 12,207,356,912 12,487,193,847
6.50%
(RMB) .40 .76 .78 .54 .17
Equity
attributable to
the listed 4,412,555,547. 4,486,110,790. 4,590,052,057. 3,727,917,440. 3,860,098,688.
-3.87%
company’s 97 39 75 03 11
shareholders
(RMB)
Indicate by tick mark whether the lower of the net profit attributable to the listed company’s shareholders before and after
exceptional gains and losses was negative for the last three accounting years, and the latest independent auditor’s report indicated
that there was uncertainty about the Company’s ability to continue as a going concern.
□ Yes No
Indicate by tick mark whether the lower of the net profit attributable to the listed company’s shareholders before and after
exceptional gains and losses was negative.
□ Yes No
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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 1,255,811,600.03 732,488,240.21 1,151,996,154.28 568,373,052.33
Net profit attributable
to the listed company’s 219,440,470.15 31,361,687.56 204,943,064.95 81,919,476.03
shareholders
Net profit attributable
to the listed company’s
shareholders before 226,479,051.98 30,171,559.07 185,140,024.51 -51,350,022.92
exceptional gains and
losses
Net cash generated
from/used in operating -762,389,016.83 366,394,785.74 355,799,959.69 145,427,375.26
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 2022 2021 2020 Note
Mainly land
Gain or loss on disposal of non-current
requisition
assets (inclusive of impairment allowance 175,644,543.02 -62,170.29 -322,603.77
write-offs) compensation
received
Government subsidies through profit or
loss (exclusive of government subsidies
consistently given in the Company’s
10,633,227.34 23,923,655.59 7,100,657.34
ordinary course of business at fixed
quotas or amounts as per governmental
policies or standards)
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Capital occupation charges on non-
financial enterprises that are through
132,289.35
profit or loss
Current profit or loss on subsidiaries
obtained in business combinations
involving entities under common control 9,596,148.16 21,251,005.70 -1,930,864.78
from the period-beginning to combination
dates, net
Gain or loss on contingencies that do not
arise in the Company’s ordinary course of 70,578.79 -2,396,947.00
business
Gain or loss on fair-value changes on
held-for-trading financial assets and
liabilities & income from disposal of
held-for-trading financial assets and 1,300.91
liabilities and available-for-sale financial
assets
Reversed portions of impairment
allowances for receivables which are 19,900.00
tested individually for impairment
Non-operating income and expense other
2,915,682.88 9,089,508.74
than the above 2,448,235.99
Other gains and losses that meet the
277,896.27 169,262.03 94,284.37
definition of exceptional gain/loss
Less: Income tax effects 51,525,180.31 6,749,597.21 3,470,226.55
Non-controlling interests effects (net of
54,953.47 -154,973.43 -80,226.22
tax)
Total 147,224,086.05 8,263,934.57 --
41,602,812.13
Particulars about other gains and losses that meet the definition of exceptional gain/loss:
□ Applicable Not applicable
No such cases for the Reporting Period.
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the Explanatory Announcement
No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss Items:
□ Applicable Not applicable
No such cases for the Reporting Period.
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Part III Management Discussion and Analysis
I Industry Overview for the Reporting Period
The Company is subject to the information disclosure requirements for the real estate industry in the Self-Disciplinary and
Regulatory Guideline No. 3 of the Shenzhen Stock Exchange for Listed Companies—Industry-specific Information Disclosure.
(I) Macro-economic situation and industry development status
In 2022, the Chinese economy was under greater downward pressure due to a contracting domestic demand, jarring supply chain
disruptions, and a palpable waning of expectations as a result of myriad factors including the US Federal Reserve's fluctuations
with interest rates and a once-in-a-century global metamorphosis. Amidst the rosy developments stemming from regulatory
authorities and the concomitant calibration of demand-supply dynamics and credit landscape, the real estate market is besieged by
a transitory adjustment quandary. In an effort to forestall any hazards lurking in the sector, policy measures geared towards
ensuring "stable growth" are being expedited. During March, a special meeting was held by the Financial Stability and
Development Committee of the State Council, where they put forth measures to support the transition towards a new development
model. Throughout this Reporting Period, the real estate policy regulation's bedrock principles of "housing is for living, not for
speculation," and the "three stabilities" dictum held firm. Encouragingly, a multitude of ministries chimed in with their support for
the industry, and certain cities enacted novel policies to catalyze the real estate market's steady growth.
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 2022 was 1,358.37 million square meters nationwide, a year-on-year decrease of 24.3%. Furthermore, sales
revenue plummeted to RMB13,330.8 billion, down by 26.7% from the previous year. Newly built residential and second-hand
residential property prices witnessed a lackluster trajectory in the first half of the year, followed by a tepid phase in the latter half,
with prices continuing their downward trajectory. In sum, the new home transactions in the top 100 cities nosedived by a
staggering 40% year-on-year, striking their lowest ebb since 2015.
New starts weakened and development investment continued to fall. Throughout the year, a total investment of RMB13,289.5
billion was completed, which represents a 10% year-on-year decrease. Negative growth began in April due to significant financial
pressure faced by real estate companies, strict pre-sale regulations, and low willingness to commence construction. Real estate
enterprises had a low willingness to start construction due to great financial pressure and stringent regulation of advance sales. In
2022, the total area of new construction was 1205.87 million square meters, which indicates a year-on-year decrease of 39.4%.
Since April, the monthly new construction area has been declining by more than 35% year-on-year for eight consecutive months,
representing the largest drop since 2016. The national housing construction area for the year was 9049.99 million square meters,
which represents a year-on-year decrease of 7.2%. Additionally, the national housing completion area was 862.22 million square
meters, indicating a year-on-year decrease of 15%.
Land acquisition decelerates as supply and demand decrease to a near-decade low. Real estate companies' overall efforts to
acquire land have slowed down, with the total amount of land transactions throughout the year reaching RMB916.6 billion,
representing a nearly 50% year-on-year decrease. Moreover, the purchased land area decreased by 53.4% year-on-year to 100.52
million square meters. The real estate market's continuous adjustment and financial pressure on companies have resulted in
differentiated market performance, with local state-owned assets bottoming out. The government's land supply and the willingness
of real estate companies to acquire land are insufficient, leading to a 31.25% year-on-year decrease in transaction volume. To
alleviate the land auction market's overall downturn, policies have entered a substantial easing period since April. Local
governments are optimizing land auction rules and releasing high-quality land plots to increase real estate companies' participation
and improve the situation of failed auctions and withdrawals. Despite these efforts, the land market sentiment remains generally
low, with a premium rate of only 3.0% and a withdrawal rate of 20.3%.
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Policy Support Fails to Drive Significant Financial Improvement. Meetings and notices from the China Securities Regulatory
Commission, the Shenzhen Stock Exchange, and the China Banking and Insurance Regulatory Commission in May mentioned
supporting reasonable financing needs of real estate enterprises. In June, the People's Bank of China and the State Administration
of Foreign Exchange proposed the need to timely correct excessive risk-avoidance behavior of financial institutions and maintain
stable real estate financing. 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 RMB2.38 trillion, which
represents a decrease of 26.5%. 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 RMB14,897.9 billion, representing a 25.9%
year-on-year decrease according to data from the National Bureau of Statistics. Although the central government and various
ministries and commissions have continuously released stabilization signals since the second half of the year, the growth rate of
funds in place at the end of the year remains unsatisfactory. 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 2022, upholding the fundamental principle that "houses are for living in, not for speculating on". Real estate policies have
entered a comprehensive easing cycle, with regulatory authorities introducing favorable policies that benefit both the demand and
enterprise sides. The strength of policies has increased, allowing local governments to implement policies based on local
conditions. Demand-side policies have been continuously adjusted from the beginning of the year, with several heavyweight
policies implemented in the second half of the year, significantly increasing support for supply-side policies. In summary, there are
three core aspects of the real estate industry policy in 2022: providing financing support to real estate enterprises to alleviate their
financial pressure; supporting individual housing loans to drive market sales recovery; and ensuring timely delivery of properties
to boost market sentiment and improve homebuyers' confidence.
The demand-side is primarily focused on land and financial policies. (1) To better meet the reasonable housing needs of
homebuyers, several cities in China have relaxed their policies on commercial housing purchases and sales. In January, the
National Development and Reform Commission issued a notice promoting consumption and supporting the commercial housing
market. In response, in February, these cities implemented policies that included reducing down payment ratios, lowering
mortgage rates, easing housing provident fund loan requirements, issuing housing subsidies, and relaxing "five limits" policies
such as purchase and lending restrictions.(2) To prevent speculation and ensure that houses are primarily used for living, credit
supervision has been strengthened, and measures to crack down on illegal funds inflow into the real estate market have been
strictly enforced. This is to prevent operating loans from entering the market. (3) The sales prices of commodity homes have
stabilized, with first-tier cities remaining stable month-on-month since the second quarter, and second- and third-tier cities
stabilizing after reaching their lowest point. (4) The ongoing reductions in interest rates have proved to be advantageous. In May,
the People's Bank of China and the China Banking and Insurance Regulatory Commission announced an adjustment in the
minimum interest rate for first-time homebuyers' commercial personal housing loans, which was set no less than 20 basis points
below the corresponding period's loan market quotation rate. Furthermore, at the end of September, some cities also lowered the
minimum interest rate for these loans. Provident fund loans with repayment terms exceeding five years were also impacted by the
interest rate cuts, resulting in a reduction to 3.1%.
The supply side focused on land and financial control. (1) In terms of land, the completion rate of the 2022 land supply plan is
relatively low. To attract real estate companies to bid, local governments are actively optimizing and adjusting land auction rules
and land supply structures, with central and state-owned enterprises becoming the mainstream in land acquisition. Additionally,
local urban investment platforms are continuing to emerge, while private enterprises are limited by credit challenges and financial
pressures, leading to a pause in their investments.(2)In early November, the People's Bank of China and the China Banking and
Insurance Regulatory Commission issued a notice on "Ensuring the Stable and Healthy Development of the Real Estate Market" in
terms of policies. This notice includes 16 specific measures such as maintaining stable and orderly real estate financing, actively
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
providing financial services for "building payment upon completion," cooperating in the risk disposal of distressed real estate
enterprises, protecting the legitimate rights and interests of housing finance consumers in accordance with the law, adjusting some
financial management policies in phases, and increasing financial support for housing rental. At the end of November, the China
Securities Regulatory Commission outlined five measures aimed at adjusting and optimizing equity financing for listed real estate
companies. These measures include restoring mergers and acquisitions, restructuring, and supporting financing for real estate-
related listed companies, as well as restoring refinancing for listed real estate enterprises and real estate-related listed companies.
In contrast, financial regulatory authorities such as the China Banking and Insurance Regulatory Commission primarily relaxed
regulations throughout the year. Meanwhile, local governments and housing construction departments strengthened their
supervision to ensure property developers deliver homes on schedule.
In 2022, provinces and cities across China issued over a thousand real estate control policies, reaching a peak in recent years. The
regulation of the real estate market continues to improve and upgrade, with the pace and intensity of policy tightening significantly
increasing since April. Looking ahead to 2023, the central government will continue to adhere to the general principle of "housing
is for living, not for speculation" and strive to achieve the "three stability" targets. 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. The concept of "completion
guarantee" - an assurance that properties will be finished prior to remuneration - continues to hold the attention of industry
insiders. As such, a rekindling of the real estate market appears to be on the horizon.
(III) Regional market landscape
From the perspective of regional markets, Shenzhen's economy held steadfast in its fortitude in 2022, even while imposing
stringent real estate regulations. Boosting market confidence were accompanying factors, such as "completion guarantee" and a
dip in the first-home mortgage interest rate. As the year dawned, Shenzhen unfurled the "14th Five-Year Plan for Housing
Development in Shenzhen," which maps out a five-year blueprint to supply 350,000 units of commercial housing and 540,000 units
of public housing. During the "Golden September and Silver October" interlude, the number of newly sold residential units in
Shenzhen eclipsed 3,000 units for two consecutive months, outpacing the average level registered in the first half of the year.
Toward the fag end of October, the Ministry of Finance released the "Implementation Opinions on Supporting Shenzhen to
Explore and Innovate Its Financial Policy System and Management System," underscoring the central government's bolstered
support to alleviate Shenzhen's housing supply and demand imbalance. As a vanguard of China's reform and opening-up policy,
Shenzhen continues to play a pivotal role in the real estate industry's major strategic metamorphosis decision-making process.
(IV) The situation and tasks facing the Company
From the perspective of SZPRD, many of the difficulties, pain points and blockage points of the projects under construction have
basically been cleared, and the conditions are in place for the Group to make great progress. The tight situation of large investment
and low output in the current period is expected to continue until the second half or even the end of 2023. Therefore, project
construction, sales payment collection and capital amplification will become the most important tasks in 2023, and the ability to
execute projects, turnaround capacity and operation and management capabilities will continue to be decisive factors in the Group's
medium to long-term development.
(V) Industry position of the Company
SZPRD arises together with Shenzhen's reform and opening up and devotes itself to real estate, property management and other
fields for nearly four decades. It has achieved gradual improvements in its comprehensive capacity, brand influence and industry
position and won many honors and awards over the years. During the Reporting Period, the Company won the title of "2022
Shenzhen Top 500 Enterprises" and ranked 187th on the list. ITC Property Management, a subsidiary of the Company, won the
following awards: "2022 Leading State-owned Enterprises in Property Management for Industrial Parks in China", "2022 Top 100
China Property Service Enterprises in Comprehensive Strength", "2022 Top 50 China State-owned Property Service Enterprises in
Comprehensive Strength", and "2022 China Property Service Brand Characteristic Enterprise - A World-leading Property
Management Ecological Operator". The Shenzhen International Trade Center Building was listed in the first group of Shenzhen
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
historical buildings announced by the People's Government of Shenzhen Municipality. The historical exhibition of Shenzhen
International Trade Center was selected as a case for the development and utilization of national economic and technological archives
resources in 2021 by the National Archives Administration of China. These awards and honors demonstrated the Company's
comprehensive strength and reflected the high recognition of the Company's comprehensive strength by the industry, customers and
government departments.
During the Reporting Period, despite the changes in the real estate industry, the Company gained a comparative advantage with stable
operation status and good financial position, seized the opportunities of the land market. The Company has triumphed in its
partnership with Yangzhou Tourism Development Property Co., Ltd., securing the first and second land parcels in the Yangzhou
Shouxihu Science and Technology Innovation City initiative. This landmark achievement not only marks the Group's foray into the
"urban-rural integration" terrain beyond its headquarters but also acts as a potent assurance of its expansion plans in the Yangtze
River Delta area. The victory also paves the way for the Group to augment its land reserves and propel sustainable development in
consonance with the "14th Five-Year Plan" phase.
II Principal Activity of the Company in the Reporting Period
The Company is subject to the information disclosure requirements for the real estate industry in the Self-Disciplinary and
Regulatory Guideline No. 3 of the Shenzhen Stock Exchange for Listed Companies—Industry-specific Information Disclosure.
(I) Core Business Overview
Established in 1982, the Company was originally known as "Luohu Engineering and Construction Headquarters" and renamed
"Shenzhen Municipal Property Development Corporation" in August 1985. The Company was determined as the second batch of
pilot units for joint-stock reform of state-owned enterprises in 1988. Approved by the municipal government, the Company renamed
to ShenZhen Properties & Resources Development (Group) Ltd. in 1990. The stock of the group company (stock name: SZPRD, A/B;
stock code: 000011, 200011) was officially listed in Shenzhen Stock Exchange in March 1992.
The Company contracted and built Shenzhen International Trade Center Building as Party A and created, planned, and organized the
world-famous "Shenzhen Speed". The building was the place where Chairman Deng Xiaoping gave talks in his inspection to the
south. SZPRD came into being because of the building and has risen amid the Reform and Opening up campaign. Emerging and
growing together with Shenzhen, a city of miracles, the Company has been “a loyal practitioner of the spirit of the ox” and overcome
difficulties in proposing new services in the new era. 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".
As 2022 heralds the 40th anniversary since its inception and the 30th anniversary since its listing, SZPRD traverses down memory
lane, recollecting its varied journey punctuated with challenges and triumphs. Witnessing the meteoric rise of Shenzhen city, the
Group has transitioned from its former "Shenzhen speed" avatar to its current iteration of "Shenzhen quality." Additionally, 2022
inaugurates the first year for the Group's periodic performance adjustment phase. During the Reporting Period, facing the deep
regulation and control in real estate, the Company faced up to the difficulties and continued to make efforts in four business
sectors, including industry-city space development, property management services, industrial ecosystem operation, and main
business ecosystem investment in its main business. The Company endeavored to further consolidate and highlight its advantages
of industry-city integration and the whole industry chain through expanding the main business and making breakthroughs in other
businesses.
1. Industrial & urban space development
14
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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
the Urban Renewal Company, strengthen capital operation via the listing platform, and make a reasonable layout of the city space
development segment. In the Reporting Period, SZPRD made greater efforts for land acquisition in this segment. For instance, it
steadily advanced the development projects inside and outside Shenzhen, accelerated the sales of projects in Xuzhou and Yangzhou,
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". Amidst the Reporting Period, ITC Property Management augmented its realm
through self-reliant development and mergers and acquisitions, culminating in the administration of a 35 million square meters of
property. The segment dedicated to industrial parks outstripped expectations, surpassing 10 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
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
15
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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 2022
As a crucial year for the "14th Five-Year Plan" and the Group's 40th anniversary since its establishment and 30th anniversary since
listing, 2022 holds significant importance. The Company concentrates on implementing key work deployments established at the
beginning of the year and promotes long-term sustainable development by enhancing overall efficiency, guided by the principle of
"long-term targets, medium-term expectations and short-term results". The Real Estate Company took expansion as the goal, and
made efforts to seek a breakthrough in project expansion. The Property Management Company took strategic transformation as the
guide to enhance the empowerment value and brand value. The Commercial Operation Company aimed at improving quality and
efficiency, and continued to innovate the operation and management mode, and each business segment has maintained a stable and
healthy development trend. As at the end of the Reporting Period, the total assets of the Group stood at approximately RMB15.8
billion. During the year, the Group recorded operating revenue of more than RMB3.7 billion and a gross profit of more than
RMB750 million, successfully achieving the major economic indicators for the year.
First, the industry-city space development segment achieved outstanding results and project expansion was fruitful. The real
estate business recorded operating revenue of RMB1,914 million, accounting for 51.6% of the total operating revenue. During the
Reporting Period, the Group actively participated in the fiercely competitive land auction market, successfully winning the first and
second batches of land plots for the Yangzhou Slender West Lake Science and Innovation City urban-industry integration project,
adding approximately 230,000 square meters to the Group's land reserves. This project provides solid support for the Group's future
sustainable development, deep cultivation in the Yangtze River Delta region, and strengthening of the urban-industry strategic layout.
Moreover, 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. The projects in Bangling, Guangming, Humen, and Yangzhou were
efficiently and orderly developed, with the refined management system for the entire real estate project development process taking
shape. Furthermore, the Guanlan Bangling project, the first urban-industry integrated project in the Longhua Guanlan area that the
Company has implemented through a market-oriented approach, obtained confirmation of the main body for the first and second
phases, completed the bidding for the total contract engineering and the demonstration area scheme. The project development has
gradually transitioned from the early stage to substantial construction and sales stages. Projects such as Yulin Lushan, Tianjun
Industrial Park, Baolu Plot, Fuyuan Industrial Zone, Huiyang Danshui, and Xuzhou Phase II have also made significant breakthrough
progress.
Second, the property management segment grew steadily and continued to accelerate market expansion. The operating
revenue from property management was RMB1,667 million throughout the year, accounting for 44.95% of the total operating
revenue, remaining the Group's second-largest revenue source and increasing its share. During the Reporting Period, efforts were
made to actively expand property management projects, with the managed area exceeding 35 million square meters. This resulted
in winning honors such as "Top 100 Comprehensive Strength of Chinese Property Service Enterprises in 2022," continuously
enhancing brand value and reputation. Furthermore, the operating performance of the International Trade Science and Technology
Park exceeded the promised net profit by nearly RMB28 million, successfully fulfilling the three-year performance commitment of
mergers and acquisitions. The management rights switch and integration of the five newly acquired companies proceeded
16
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
smoothly and orderly. Efforts were made to undertake diverse formats such as hotels and sports venues for the first time.
Concurrently, inventory and profit and loss analysis of managed projects were carried out, formulating a series of measures to
improve quality and efficiency, providing scientific and referable experiences and models for subsequent project acquisition and
operation. Additionally, efforts were made to actively promote upstream and downstream mergers and acquisitions in the
industrial chain, strategically investing in China Construction Science and Industry Group's smart parking company. The first
phase of the International Trade Cloud 2.0 digital platform was successfully constructed and deployed, further promoting the
digital and intelligent transformation of the property management sector. Various measures were taken to improve labor
efficiency, exploring the establishment of market-oriented expansion incentive mechanisms, implementing the Market Expansion
Reward Management Measures and other systems, and actively promoting the coordination and cost management of the security
business.
Third, quality and efficiency were improved and core operating capabilities were cultivated for the industrial ecological
operation and other segments. The operating revenue from property rental throughout the year was RMB128 million, accounting
for 3.45% 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, the industrial operation sector cultivated core operational capabilities through multiple
paths, such as improving asset quality and efficiency and exploring the establishment of incremental sharing mechanisms. The
company made all-out efforts to stabilize tenants, rents, and expectations, with a property leasing rate of approximately 94.9% and
rent collection rate of approximately 97.3%. Additionally, the company actively implemented rent reduction policies, resulting in a
cumulative reduction of rent by about RMB50.36 million, benefiting 705 tenants and demonstrating the responsibility of state-
owned enterprises. Furthermore, the company accelerated the transformation and upgrading of existing assets and revitalized their
utilization, after completing the disposal of 17 low-efficiency assets. An estimated increase of about RMB55 million in revenue is
expected. In terms of industrial investment promotion, the Group released the "Industrial Operation White Paper" within the year,
building a "1+2+3+N" industrial strategy system through multiple channels. The company also explored the in-depth property
development strategy and vigorously promoted investment promotion work for Bangling, Yangzhou, and International Trade Mall
upgrade projects.
New additions to the land bank:
Considerati
Floor area Total land on of the
Planned How the The
Name of land lot Site area price Company’s
Location use of with plot land is Company’s
or project （㎡） (RMB’0,00 interest
land ratio （㎡） obtained interest
0) (RMB’0,00
0)
Pingshan
Village, Commer
Land Lot No.
Hanjiang cial and Open
GZ342 in 195,633 305,496.40 67.00% 83,535.29 55,968.64
District, residenti market
Yangzhou City
Yangzhou al
City
Pingshan
Village, Commer
Land Lot No.
Hanjiang cial and Open
GZ399 in 35,979 64,762.20 67.00% 17,917.54 12,004.75
District, residenti market
Yangzhou City
Yangzhou al
City
Cumulative land bank:
Floor area available for
Name of project/area Site area（0,000 ㎡） Floor area（0,000 ㎡）
development（0,000 ㎡）
17
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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
Cumulat
area that
Planned ive floor
Time for % complet Estimate Cumulat
Ci floor area that
commen de ed d total ive
ty/ The % that has area has
Name of Locati cement ve Site area construc investm investme
re Usage Company’ completed with complet
project on of lo （㎡） tion in ent nt
gi s interest construction plot ed
construc pe the (RMB’0 (RMB’0
on ratio construc
tion d Current ,000) ,000)
（㎡） tion
Period
（㎡）
（㎡）
Main work
U completion
nd filing
Sh er completed,
Fuhui Futian
en Resident co 91,133.0 77,396.0
Huayua Distric 100.00% 2018.12 and fine 4,274 33,430 0 0
zh ial ns 0 0
n t decoration
en tru
cti completed
on and
accepted
Phase I is
going
through land
use approval
formalities,
Phase II has
earthwork,
Resident U
ial, nd foundation
Sh Longh commer er pit
Guanlan
en ua cial co supporting 694,150. 468,620.
Banglin 69.00% 2020.10 68,298 433,640 0 0
zh Distric apartme ns and pile 00 22
g
en t nts and tru foundation
industria cti
under
l on
construction
, and certain
land lot is
going
through
main body
construction
All
engineering
U piles
nd completed,
Sh Guang er basement
en Yutang ming Resident co 258,818. 179,227.
100.00% 2022.03 (±0.000) 14,901 81,960 0 0
zh Shangfu Distric ial ns 56 88
tru completed,
en t
cti and 4 floors
on of main
body
completed
D Sea Bay Hume Resident U Basement 321,173. 236,156.
100.00% 2022.03 51,687 113,713 0 0
on Garden n ial nd topped out, 93 79
18
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
gg Town er ±0.000 floor
ua co beams
ns
n completed
tru
Ci cti for main
ty on body, tower
building
completed
to 6/F
Ya Industri To
ng Yangzho Pingsh al, be
co
zh u an office 377,479. 86,396.6
67.00% 2023.03 ns - 231,612 370,258 0 0
ou Shouxih Villag and tru 00 3
Ci u project e residenti ct
ty al ed
X C
uz Banshan Tongs o
ho Yujing han Resident m 24,700.0 22,964.0
100.00% 2019.03 100.00% 31,537 22,795 22,795 22,795
u (Phase Distric ial pl 0 0
Ci II) t et
ty ed
Sales status of major projects:
Pre- Pre-
Floor Floor area sale/sale Floor sale/sale
area Floor s s
The Cumulativ pre- area
Name with area revenue Cumulativ revenue
City Compa e pre- sold/sold settled
of plot availabl generate e settled settled
/regi Location Usage ny’s sold/sold in the in the
projec e for in the floor area in the
on interes ratio floor area Current Current
t sale Current (㎡) Current
t （㎡ （㎡） Period Period
（㎡） Period Period
） （㎡） （㎡）
(RMB’0 (RMB’0
,000) ,000)
Golde Intersection
n of Futian Residential,
She Collar South Road studio
100.00 133,8 125,231 119,004.9 110,446. 119,004.5 18,643.9 159,276.
nzhe ’s and Binhe apartments 12,479.71
n Resort Road in and % 00.60 .07 9 58 1 1 00
apart Futian commercial
ments District
Residential
Intersection
Yan Hupan units, shops,
of Shouxihu
gzho Yujing apartments, 100.00 36,14 48,870.
Road and 43,023.81 200.94 77.30 43,023.81 200.94 70.92
u Phase parking % 1.28 98
Hangou
City I garages and
Road
lots
Bansh
6 Huashan
Xuz an
Road, 100.00 22,79 21,720. 21,660.4 25,308.3
hou Yujing Residential 21,720.72 - - 21,660.46
Tongshan % 4.76 72 6 8
City Phase
District
II
Don Songh Dalang
Residential
ggua u Town, 100.00 147,1 140,911 140,911.0 149,349.8
and 108.00 88.34 108.00 84.13
n Langy Dongguan % 39.96 .00 0 4
commercial
City uan City
Residential
Intersection
Yan Hupan units, shops,
of Shouxihu
gzho Yujing apartments, 100.00 56,93 73,121.
Road and 70,050.02 1,716.05 2,481.69 70,030.91 1,716.05 2,339.25
u Phase parking % 5.75 96
Hangou
City II garages and
Road
lots
Rental status of major projects:
The Rentable area Cumulative Average
Name of project Location Usage
Company’s （㎡） rented area occupancy
19
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
working （㎡） rate
interest
Xi Apartments Apartments for
Shenzhen 100.00% 3,967.05 3,967.05 100.00%
(Longyuan) long-term rental
Apartments for
Xi Apartments (Longhua) Shenzhen 100.00% 1,609.42 1,609.42 100.00%
long-term rental
Apartments for
Xi Apartments (Xinhu) Shenzhen 100.00% 1,600.00 1,600.00 100.00%
long-term rental
Apartments for
Donghu Apartments Shenzhen 100.00% 8,253.80 6,163.71 74.68%
long-term rental
Food Court in the
Shenzhen Commercial 100.00% 4,152.47 1,534.30 36.95%
International Trade Center
Commercial,
Fumin Complex Shenzhen 100.00% 5,899.00 4,771.92 80.89%
apartments
Tower A of Wenjindu Port
Shenzhen Office building 75.00% 5,884.30 5,619.30 95.50%
Building
Commercial
Haiwai Lianyi Building Shenzhen 75.00% 9,313.78 9,313.78 100.00%
units and offices
Anhua Building Shenzhen Offices 75.00% 1,414.00 1,414.00 100.00%
Pengfu Building Shenzhen Offices 75.00% 6,494.00 6,494.00 100.00%
Shenzhen
Jinfu Building Commercial 75.00% 1,702.70 1,652.70 97.06%
Shenzhen
Shenzhen
Jinfu Building Commercial 100.00% 567.56 567.56 100.00%
Shenzhen
Residential/com
Fuxing Garden Shenzhen 75.00% 5,787.22 5,787.22 100.00%
mercial
Fuxing Garden Shenzhen Commercial 100.00% 1,417.15 1,417.15 100.00%
Plant area in Tangxia Dongguan
Plant 75.00% 1,782.00 1,782.00 100.00%
Town, Dongguan City City
Commercial
Pacific Business Building Shenzhen 75.00% 3,149.03 2,385.42 75.75%
units/offices
Commercial
Pacific Business Building Shenzhen 15.00% 14,888.76 12,344.33 82.91%
units/offices
Commercial
Kangti Building Shenzhen 75.00% 2,095.87 1,925.47 91.87%
units/offices
Commercial
Kangti Building Shenzhen 15.00% 1,146.81 1,146.81 100.00%
units/offices
Commercial and
Lyuhua Building Shenzhen 75.00% 7,106.95 6,869.19 96.65%
residential
Shops on the ground floor
of Tower 48 in Lianhua Shenzhen Shops 75.00% 1,000.34 1,000.34 100.00%
North Village
Apartments and
Haonianhua Building Shenzhen commercial 100.00% 1,939.56 1,939.56 100.00%
units
Apartments and
Haonianhua Building Shenzhen commercial 75.00% 2,277.90 2,240.73 98.37%
units
Hostel 2 at Yuxin School Shenzhen Hostel 75.00% 3,000.00 3,000.00 100.00%
Kaifeng Garden in
Shenzhen Residential 100.00% 1,306.82 922.44 70.59%
Shangmeilin
Fuyuan Industrial Zone Shenzhen Plant area 75.00% 47,131.40 47,131.40 100.00%
Tonglu Industrial Zone Shenzhen Plant area 100.00% 76,886.26 73,408.48 95.48%
Jiangling Industrial Zone Shenzhen Plant area 75.00% 10,396.64 10,396.64 100.00%
Commercial/offi
Zone 21 Shenzhen 75.00% 9,514.30 9,434.30 99.16%
ces
Baoli Community Shenzhen Residential 75.00% 9,020.07 8,208.79 91.01%
Songgang Plant Shenzhen Plant area 75.00% 5,700.00 5,700.00 100.00%
20
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Longbu Plant Shenzhen Plant area 75.00% 7,471.36 7,471.36 100.00%
Gonglu Building in
Shenzhen Offices 75.00% 4,599.72 4,552.84 98.98%
Huanggang
Yuetong Complex Shenzhen Offices 75.00% 3,044.00 3,044.00 100.00%
Department Store Plaza Shenzhen Offices 33.00% 12,751.15 12,751.15 100.00%
Southern Securities
Shenzhen Offices 33.00% 8,809.80 2,194.82 24.91%
Building
Building 409, Sangda
Shenzhen Plant area 33.00% 3,309.20 3,309.20 100.00%
Industrial Zone
Mianshui Studio
Shenzhen Apartment 33.00% 3,440.12 3,440.12 100.00%
Apartment
Xiangfu Building Shenzhen Commercial 33.00% 3,109.40 3,109.40 100.00%
Primary land development:
□ Applicable Not applicable
Financing channels:
Unit: RMB
Financin
Maturity structure
g cost
Financing Ending balance of range/av
channel financings erage
Within 1 year 1-2 years 2-3 years Over 3 years
financin
g cost
Bank
3,809,915,668.00 4%-6% 126,500,000.00 2,999,400,000.00 523,600,000.00 160,415,668.00
loans
Total 3,809,915,668.00 4%-6% 126,500,000.00 2,999,400,000.00 523,600,000.00 160,415,668.00
Development strategy and operating plan for the coming year:
Under the macro-economic environment of "triple pressure" in 2023 and amid the overall downward development trend of the
conventional real estate market, SZPRD will actively search for the strategic breakthrough direction, comprehensively connect with
the major strategic orientation of the state-owned asset system and firmly grasp the core processes of stock asset value management
and industrial ecological operation services. Relying on the principle of "expanding the main business and making breakthroughs",
efforts will be doubled to develop four major businesses, i.e., industry-city space development, property management services,
industrial ecological operation and main business ecosystem investment, and guide high-quality development with a new
development philosophy.
In terms of land reserves, SZPRD plans to expand and boost its land reserves through market competition and capital operations.
The group's focus will remain on the Guangdong-Hong Kong-Macao Greater Bay Area, the Yangtze River Delta, and other
regions with promising economic development prospects. To expedite project execution, the group will actively facilitate market-
oriented bidding, auctioning, and listing, as well as pursue industrial land acquisition, urban renewal, and project cooperation. To
promote both construction and sales repayment, SZPRD will accelerate project development in 2023. The group will prioritize
ongoing project design management and approval work, showcasing high-quality and high-standard demonstration areas and
image displays for each project. While ensuring quality, safety, and environmental protection, the group will comprehensively
advance project construction by proactively responding to uncertain market conditions and focusing on the core goal of "cash
inflow." To coordinate development and business operations effectively, the group's headquarters will work hard on "speeding up,
expanding, empowering, and producing results." The group will deepen the management functions of the platform company,
continuously enhance development capabilities in product planning, project operation, accelerated destocking, and centralized
procurement, establish unified standards, deepen lean management, and further strengthen the overall advantages of the group's
real estate sector. To begin with, it is essential to coordinate the development of major and complex projects. This involves
expediting the construction and development of various projects, such as the Humen Coastal Harbor Project, Guangming Yutang
21
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Shangfu Project, Guanlan Bengling Urban Renewal Project, and Yangzhou Project. Additionally, efforts should be made to
facilitate the timely completion and acceptance of the second phase of Fuchang's fine decoration. The second objective is to
promote the preliminary work of urban renewal projects and ensure the group's future success. The Pingshan Tianjun Industrial
Park Project should aim to complete the signing of the demolition memorandum and demolition compensation agreement, while
the Fuyuan Industrial Park Project should focus on updating the unit scope, unit change, plan approval, and special planning
preparation. The third priority is to enhance marketing and trading capabilities to meet sales targets. Opportunities in the market
should be seized to promote the sales liberalization of residential properties in Humen, Guangming, and Bengling projects, finish
delivery of the second phase of Fuchang and other works.
For details, please refer to "XI Prospects" in “Part III Management Discussion and Analysis" in the 2022 annual report. The above
business plan and business objectives do not represent the listed Company’s profit forecast for 2023. Whether it can be achieved
depends on various factors including changes in market conditions and the effort made by the management team. Investors must pay
special attention to that because there exists huge uncertainty.
Provision of guarantees for homebuyers on bank mortgages:
Applicable □ Not applicable
As a usual practice for real estate developers, the Company has been providing guarantees and security deposits for its homebuyers
on their bank mortgages. As at 31 December 2022, security deposits for such outstanding guarantees amounted to
RMB1,131,041.58, which will be returned upon the expiry of the guarantees, i.e. when the relevant homebuyers paid off their bank
mortgages.
Joint investments by directors, supervisors and senior management and the listed company (applicable for such
investments where the directors, supervisors and senior management are the investment entities):
Applicable □ Not applicable
Compatibility
Amount of 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
Urban Mandatory investment
Renewal of entities (including
2,647.00 66.18% N/A 0 None N/A
Bangling directors and senior
Section at management)
Guanlan
Voluntary investment
Street 1,353.00 33.82% N/A 0 None N/A
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
22
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
years, the Group continues to innovate institutional mechanisms, deepen internal reforms, and actively benchmark with industry
models for market-oriented operation, which significantly stimulates the vitality and momentum of the Group's high-quality
development. In recent years, the Guanlan Bangling project pioneered the cooperation between state-owned enterprises and private
enterprises in developing urban renewal projects, marking the first fully market-oriented urban renewal project in the history of the
Group, and took the lead in implementing the follow-on investment system for urban renewal projects in the city's state-owned
capital system. 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 Guanlan Bangling urban renewal project, the Group's advantages of city-industry complex
development products have been highlighted, and with the implementation of a series of urban renewal projects and industrial
projects, the advantages of city-industry complex will be further consolidated and enhanced.
Advantages as a holding subsidiary of a Fortune Global 500 company: Shenzhen Investment Holdings Co., Ltd., the controlling
shareholder of the Company, has been committed to building a world-leading state-owned capital investment and operation company
and a financial holding group. It has now developed into a state-owned capital investment company focusing on fintech, technology
parks, infant industries and high-end services. It was listed in Fortune Global 500 companies in 2022 with operating revenue of
RMB242.5 billion and ranked 372nd on the list, 24 places higher than that in 2021. Relying on the controlling shareholder's
advantages in the whole industrial chain of technology parks, the Company carries out active transformation and upgrading and
concentrates on the development and construction of industry-city complexes, heralding a broader development prospect.
IV Core Business Analysis
1. Overview
See contents under the heading “II Principal Activity of the Company in the Reporting Period” above in “Management Discussion
and Analysis”.
2. Revenue and Cost Analysis
(1) Breakdown of Operating Revenue
Unit: RMB
2022 2021
As % of total As % of total Change
Operating revenue operating revenue Operating revenue operating revenue (%)
(%) (%)
Total 3,708,669,046.85 100.00% 4,911,120,528.33 100.00% -24.48%
23
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
By operating division
Property
1,913,674,526.31 51.60% 3,131,113,534.70 63.76% -38.88%
development
Property
1,666,961,878.32 44.95% 1,603,746,855.20 32.66% 3.94%
management
Property rental 128,032,642.22 3.45% 176,260,138.43 3.59% -27.36%
By product category
Property
1,913,674,526.31 51.60% 3,131,113,534.70 63.76% -38.88%
development
Property
1,666,961,878.32 44.95% 1,603,746,855.20 32.66% 3.94%
management
Property rental 128,032,642.22 3.45% 176,260,138.43 3.59% -27.36%
By operating segment
Shenzhen 3,122,667,234.12 84.20% 4,465,808,268.81 90.93% -30.08%
Other 586,001,812.73 15.80% 445,312,259.52 9.07% 31.59%
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 YoY change in YoY change in
Gross profit
Operating revenue Cost of sales in operating cost of sales gross profit
margin
revenue (%) (%) margin (%)
By operating division
Property
developm 1,913,674,526.31 433,443,568.87 77.35% -38.88% 0.22% -8.84%
ent
Property
managem 1,666,961,878.32 1,441,477,771.44 13.53% 3.94% 10.53% -5.15%
ent
By product category
Property
developm 1,913,674,526.31 433,443,568.87 77.35% -38.88% 0.22% -8.84%
ent
Property
managem 1,666,961,878.32 1,441,477,771.44 13.53% 3.94% 10.53% -5.15%
ent
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
24
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Operating division Item Unit 2022 2021 Change (%)
Sales volume m2 14,396.70 37,622.78 -62.00%
Property
Output m2 495,583.11 262,098.00 89.00%
development
Inventory m2 28,008.22 35,157.25 -20.00%
Any over 30% YoY movements in the data above and why:
Applicable □ Not applicable
The sales volume dropped as a result of the decreased properties available for sale, a weakening market, etc.; and the output
increased due to the start of construction of a number of real estate projects.
(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
2022 2021
Operating
Item As % of total As % of total Change (%)
division
Cost of sales cost of sales Cost of sales cost of sales
(%) (%)
Property
developmen 433,443,568.87 21.90% 432,501,558.96 23.67% -1.77%
t
Property
1,441,477,771.44 72.85% 1,304,193,657.50 71.37% 1.48%
management
Property
103,856,280.91 5.25% 90,687,606.72 4.96% 0.29%
rental
Note:
N/A
(6) Changes in the Scope of Consolidated Financial Statements for the Reporting Period
Yes □ No
See “VIII Changes to the Consolidation Scope” in “Part X Financial Statements” in this Report.
(7) Major Changes to the Business Scope or Product or Service Range in the Reporting Period
□ Applicable Not applicable
(8) Major Customers and Suppliers
Major customers:
25
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Total sales to top five customers (RMB) 410,823,986.62
Total sales to top five customers as % of total sales of the
11.08%
Reporting Period (%)
Total sales to related parties among top five customers as % of
8.18%
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 1 303,186,237.98 8.18%
2 Corporation 2 46,010,450.34 1.24%
3 Corporation 3 24,265,146.78 0.65%
4 Corporation 4 20,413,436.28 0.55%
5 Natural person 1 16,948,715.24 0.46%
Total -- 410,823,986.62 11.08%
Other information about major customers:
□ Applicable Not applicable
Major suppliers:
Total purchases from top five suppliers (RMB) 476,983,727.17
Total purchases from top five suppliers as % of total purchases
33.50%
of the Reporting Period (%)
Total purchases from related parties among top five suppliers
8.11%
as % of total purchases of the Reporting Period (%)
Information about top five suppliers:
Purchase in the Reporting
No. Supplier As % of total purchases (%)
Period (RMB)
1 Corporation 1 237,055,828.36 16.65%
2 Corporation 2 115,448,234.35 8.11%
3 Corporation 3 77,574,607.34 5.45%
4 Corporation 4 25,617,258.95 1.80%
5 Corporation 5 21,287,798.17 1.50%
Total -- 476,983,727.17 33.50%
Other information about major suppliers:
□ Applicable Not applicable
3. Expense
Unit: RMB
2022 2021 Change (%) Reason for any significant change
Decrease in commissions paid for
Selling expenses 53,541,997.78 73,372,016.02 -27.03%
sales agents
Administrative
329,991,655.74 323,975,355.61 1.86%
expenses
Finance costs 50,571,183.83 5,361,667.33 843.20% Decrease in interest income
Acquisition of FMC in September
R&D expenses 3,244,129.11 2,171,797.80 49.38%
2021
26
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
4. R&D Investments
Applicable □ Not applicable
Major
Expected impact on the
R&D Purpose Progress Objectives
Company
program
It fully supports all kinds of project-level business
such as engineering, customer service,
environment, safety, order, quality, etc., as well as
To meet the the Group’s control level business. Specific Add full view of
management needs as functional modules include task management, operations and digital
Property
an integrated property plan management, demand management, charge management, laying
Manageme
management company Delivered management, material inventory, quality the foundation for
nt System
as well as a management, personnel management and other more and better access
(PMS)
professional property functions, and provides internal PC terminal and to the consumer market
service provider APP terminal, as well as mini-app for customers. in the future
Decision analysis can be further customised
according to the actual needs of the customer with
more analytical reports and large display screens.
It realises that the
assets of equipment
and facilities can be
accounted for, the
quality of operation
and maintenance
services can be
managed, the risks of It supports full coverage of facility and equipment
facilities can be control activities throughout the building's
controlled, and the lifecycle, including the entire process of handover Add full view of
data for decision- and takeover (customised function), operation, operations and digital
Facility
making can be relied maintenance, repair, renovation and end-of-life management, laying
Manageme
on, and through the Delivered disposal, and supports IOT integrated operation the foundation for
nt System
continuous monitoring, operation and maintenance work more and better access
(FMS)
accumulation of management, basic settings, intelligent analysis to the consumer market
platform data, it and other functions. The local intelligent in the future
promotes the subsystems/equipment collects data through the
continuous edge computing gateway.
optimisation of
management
standards and
construction standards
to realise true digital
operation and
maintenance.
Details about R&D personnel:
2022 2021 Change (%)
Number of R&D personnel 37 30 23.33%
R&D personnel as % of total
0.40% 0.39% 0.01%
employees
Educational background
Bachelor’s degree 23 11 109.09%
Master’s degree 4 0 -
Junior college 10 19 -47.37%
Age structure
27
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Below 30 24 9 166.67%
30~40 11 9 22.22%
Over 40 2 12 -83.33%
Details about R&D investments:
2022 2021 Change (%)
R&D investments (RMB) 3,244,129.11 2,171,797.80 49.38%
R&D investments as % of
0.09% 0.04% 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 2022 2021 Change (%)
Subtotal of cash generated
4,526,054,341.31 6,246,168,443.05 -27.54%
from operating activities
Subtotal of cash used in
4,420,821,237.45 8,075,148,195.50 -45.25%
operating activities
Net cash generated from/used
105,233,103.86 -1,828,979,752.45 -105.75%
in operating activities
Subtotal of cash generated
197,490,121.81 234,973.91 83,947.68%
from investing activities
Subtotal of cash used in
45,114,342.34 29,143,961.50 54.80%
investing activities
Net cash generated from/used
152,375,779.47 -28,908,987.59 -627.09%
in investing activities
Subtotal of cash generated
303,349,674.44 2,140,000.00 14,075.22%
from financing activities
Subtotal of cash used in
963,797,633.48 575,922,103.76 67.35%
financing activities
Net cash generated from/used
-660,447,959.04 -573,782,103.76 15.10%
in financing activities
Net increase in cash and cash
-398,048,377.77 -2,433,157,872.42 -83.64%
equivalents
Explanation of why any of the data above varies significantly:
Applicable □ Not applicable
(1) Net cash generated from operating activities increased year on year, primarily driven by the decreased land acquisition and tax
expenditures in the Reporting Period.
(2) Cash generated from investing activities increased year on year, primarily driven by the receipt of the compensation for the
requisition of the land at Baolu in the Reporting Period.
28
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
(3) Cash generated from financing activities increased year on year, primarily driven by new bank borrowings in the Reporting
Period.
(4) Cash used in financing activities increased year on year, primarily driven by the payment for an equity acquisition involving
entities under common control in the Reporting Period.
Reason for any big difference between the net operating cash flow and the net profit for this Reporting Period:
Applicable □ Not applicable
For the Reporting Period, net cash generated from operating activities stood at RMB105,233,103.86, representing a big difference
from the net profit of RMB529,340,607.96, primarily driven by the receipt of the compensation for the requisition of the land at
Baolu and an increase in land bank expenditure 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
Share of profits of joint
Return on investment 1,981,330.90 0.26% Yes
ventures
Purchase of held-for-trading
Gain/loss on changes
117,082.19 0.02% financial assets in the Not
in fair value
Reporting Period
Inventory valuation
Asset impairments -528,430.23 -0.07% Not
allowances
Miscellaneous confiscatory
and penalty income and write-
Non-operating income 7,198,004.28 0.96% off of payables that have been Not
not able to be settled for a
long time
Payments for liquidated
Non-operating expense 2,556,893.74 0.34% Not
damages and fines
Allowances for doubtful
Credit impairment loss -17,395,139.90 -2.32% Not
accounts
Receipt of the compensation
Gain on disposal of
175,810,605.44 23.42% for the requisition of the land Not
assets
at Baolu
VI Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
31 December 2022 1 January 2022 Chang
e in Reason for any
As % of total As % of total percent significant
Amount Amount age change
assets assets
(%)
Monetary Payment for
1,517,528,893.83 9.60% 2,280,821,442.11 15.37% -5.77%
assets land
Increased
Accounts property
419,933,915.30 2.66% 293,985,139.93 1.98% 0.68%
receivable management
fees receivable
29
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Contract
1,094,632.90 0.01% 0.00 0.00% 0.01%
assets
Increased land
Inventories 10,975,334,223.37 69.46% 9,125,134,062.27 61.51% 7.95%
bank
Investment
405,762,739.18 2.57% 459,204,609.35 3.10% -0.53%
property
Long-term Increased
equity 79,781,437.31 0.50% 50,360,681.37 0.34% 0.16% returns from
investments joint ventures
Reclassification
Fixed assets 82,745,172.12 0.52% 114,155,590.40 0.77% -0.25%
of assets
Construction
0.00% 0.00% 0.00%
in progress
Right-of-use
70,168,415.65 0.44% 71,472,680.73 0.48% -0.04%
assets
Short-term
0.00% 0.00% 0.00%
borrowings
Operating
Contract
920,828,040.81 5.83% 1,374,165,809.40 9.26% -3.43% revenue
liabilities
carryforwards
Long-term
3,618,782,344.00 22.90% 3,524,500,000.00 23.76% -0.86% New bank loan
borrowings
Lease
77,963,283.55 0.49% 83,081,182.89 0.56% -0.07%
liabilities
Recovery of
certain current
accounts and
Other
639,903,523.33 4.05% 926,361,533.14 6.24% -2.19% increased
receivables
allowances for
doubtful
accounts
Deferred
Increased land
income tax 1,383,050,586.04 8.75% 1,279,816,590.32 8.63% 0.12%
assets VAT provisions
Prepayment for
equity
acquisition
transferred to
Other non- long-term
2,750,873.08 0.02% 45,571,997.85 0.31% -0.29%
current assets equity
investments as
acquiree has
been
transferred
Increased
Accounts
608,283,388.52 3.85% 351,894,812.23 2.37% 1.48% payables for
payable engineering
Receipt of
cooperation
Other funds from
1,515,085,832.45 9.59% 1,027,622,090.94 6.93% 2.66%
payables cooperation
party Yangzhou
Wuhe
Indicate whether overseas assets account for a higher proportion of total assets.
□ Applicable Not applicable
30
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
2. Assets and Liabilities at Fair Value
Applicable □ Not applicable
Unit: RMB
Impair
Gain/loss
ment
on fair- Cumulative Sold
allowa Purchas
value fair-value in the
Beginning nce ed in the Other Ending
Item changes in changes Report
amount for the Reportin changes amount
the charged to ing
Report g Period
Reporting equity Period
ing
Period
Period
Financial assets
4. Investments in
other equity 1,002,551.95 -168,720.11 54,006.80 887,838.64
instruments
Total of the above 1,002,551.95 -168,720.11 54,006.80 887,838.64
Financial
0.00 0.00
liabilities
Contents of other changes:
Other changes were resulted from exchange rate movements.
Significant changes to the measurement attributes of the major assets in the Reporting Period:
□ Yes No
3. Restricted Asset Rights as at the Period-End
Unit: RMB
Item Ending carrying value Reason for restriction
Monetary assets 7,835,036.35 Notes 1-10
Land use rights at Fumin New
542,507,314.43 Note 11
Village, Futian District, Shenzhen
Total 550,342,350.78
Note 1: In terms of monetary assets with restricted right to use at the period-end, there was an escrow deposit of RMB44,820.14 of
the catering branch of the subsidiary company Shandong Shenguomao Real Estate Management Co., Ltd.
Note 2: In terms of monetary assets with restricted right to use at the period-end, there was an advance payment guarantee deposit of
RMB459,627.50 issued by the subsidiary company Shenzhen Facility Management Community Technology Co., Ltd. in December
2021 for the upgrading and reconstruction of the smart park of Shenzhen Bay Eco-Technology Park and the software platform
development contract.
Note 3: 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 4: In terms of monetary assets with restricted right to use at the period-end, there was a loan deposit of RMB1,131,041.58
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 5: In terms of monetary assets with restricted right to use at the period-end, there was RMB2,860,000.00 of interest on term
31
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
deposits accrued at the period-end.
Note 6: In terms of monetary assets with restricted right to use at the period-end, there was RMB16,111.20 of interest on large-
denomination CDs (more than one year).
Note 7: In terms of monetary assets with restricted right to use at the period-end, there was RMB129,154.28 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 8: In terms of monetary assets with restricted right to use at the period-end, there was a restricted fund of RMB42,781.65 in the
frozen account of the subsidiary company Shenzhen Huazhengpeng Property Management Co., Ltd.
Note 9: At the end of the period, there were monetary funds with restricted use rights, including an amount of RMB150,000.00,
which was provided by the subsidiary Shenzhen International Trade Center Property Management Co., Ltd (ITC Property
Management). This amount was submitted on 28 December 2022, as an on-demand bid bond deposit to participate in the bidding
process for the Jiulong Street Domestic Waste Sorting Operation Project (Bidding No.: 21C00183).
Note 10: 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 11: Due to the needs of daily business activities, the Company applied for a loan from Bank of Communications Co., Ltd.
Shenzhen Branch and mortgaged the land use right of Fumin New Village, Futian District. The loan has a duration from November
27, 2020 to November 27, 2023 and applies floating interest rates.
VII Investments Made
1. Total Investment Amount
□ Applicable Not applicable
2. Major Equity Investments Made in the Reporting Period
Applicable □ Not applicable
Unit: RMB
W
het
her
inv
Nam olv
Pro Status
e of Inves Shareho Inves ed Date of
Main Sourc du as at the Investment return Disclosure
inves tment Invested lding tment Predicted in disclosu
busin e of Partners ct balance in the current index (if
tee meth amount percent durati return an re (if
esses fund typ sheet period any)
corpo od age (%) on y any)
e date
ration leg
al
act
ion
s
For details,
ShenZhen see the
Special Announceme
Shen Economic nt on the
zhen Prope Zone Real Progress of
Eq
Prope rty Estate & Owners the Wholly-
uit 15
rty mana Acqu 206,390,636 100.00 Equit Properties hip 206,390,636 owned
Long y
Mana geme isitio y (Group) 1,994,678.06 No Februar Subsidiary's
.61 % -term int transfer .61
geme nt n fund Co., Ltd. Acquisition
ere y 2022
nt servi and red of 100%
st
Co., ces Shenzhen Equity in
Ltd. SPG Shenzhen
Investmen Property
t Co., Ltd. Managemen
t Co., Ltd.
32
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
and Related-
party
Transactions
on
www.cninfo.
com.cn
(Announce
ment No.:
2022-01).
For details,
see the
Announceme
nt on the
Progress of
the Wholly-
owned
Shen Subsidiary's
zhen Acquisition
Forei of 100%
Prope
gn China Eq Equity in
rty Owners
Trade Shenzhen uit 25 Shenzhen
mana Acqu 20,902,006. 100.00 Equit hip 20,902,006.
Prope Foreign Long y Foreign
geme isitio y 2,904,931.75 No Februar
rty 86 % Trade -term int transfer 86 Trade
nt n fund
Mana (Group) ere y 2022 Property
servi red
geme Corp. Ltd. st Managemen
ces
nt t Co., Ltd.
Co., and Related-
Ltd. party
Transactions
on
www.cninfo.
com.cn
(Announce
ment No.:
2022-06).
For details,
see the
Announceme
nt on the
Progress of
the Wholly-
owned
Subsidiary's
Shen Acquisition
zhen of 100%
Shenf Prope Equity in
Eq
ubao rty Owners Three
Shenzhen uit 25
Prope mana Acqu 61,147,388. 100.00 Equit hip 61,147,388. Enterprises
Shenfuba Long y
rty geme isitio y -516,728.17 No Februar Owned by
00 % o (Group) -term int transfer 00
Deve nt n fund Shenzhen
Co., Ltd. ere y 2022
lopm servi red Shenfubao
st
ent ces (Group) Co.,
Co., Ltd. and
Ltd. Related-
party
Transactions
on
www.cninfo.
com.cn
(Announce
ment No.:
2022-05).
Build For details,
ing see the
proje Announceme
Shen
ct nt on the
zhen
const Progress of
Shenf
ructio the Wholly-
ubao
n, Eq owned
Hydr Owners
muni Shenzhen uit 25 Subsidiary's
opow Acqu 21,839,733. 100.00 Equit hip 21,839,733.
cipal Shenfuba Long y Acquisition
er isitio y -4,580,230.57 No Februar
proje 03 % o (Group) -term int transfer 03 of 100%
Muni n fund
ct Co., Ltd. ere y 2022 Equity in
cipal red
const st Three
Servi
ructio Enterprises
ce
n, Owned by
Co.,
daily Shenzhen
Ltd.
opera Shenfubao
tion (Group) Co.,
and Ltd. and
33
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
maint Related-
enanc party
e of Transactions
muni on
cipal www.cninfo.
publi com.cn
c (Announce
facilit ment No.:
ies, 2022-05).
road
clean
ing,
etc.
For details,
see the
Announceme
nt on the
Progress of
the Wholly-
owned
Subsidiary's
Shen Prope Acquisition
zhen rty of 100%
Free secur Equity in
Eq
Trade ity Owners Three
Shenzhen uit 25
Zone and Acqu 3,935,937.1 100.00 Equit hip 3,935,937.1 Enterprises
Shenfuba Long y
Secur enter isitio y 78,811.51 No Februar Owned by
2 % o (Group) -term int transfer 2
ity prise n fund Shenzhen
Co., Ltd. ere y 2022
Servi intern red Shenfubao
st
ce al (Group) Co.,
Co., secur Ltd. and
Ltd. ity Related-
party
Transactions
on
www.cninfo.
com.cn
(Announce
ment No.:
2022-05).
Inves
tment For details,
, see the
const Voluntary
ructio Announceme
n, nt on a
CSC opera Capital
EC tion, Increase to
China
Smar etc. the Delisted
Constructi
t of Eq CSCEC
Capit on Capital 30
Parki parki Equit uit Smart
al 27,352,941. Science Long y increase 27,352,941. Decem
ng ng 10.00% y -term int 632,605.58 No Parking
incre 18 and complet 18 ber
Tech busin fund ere Technology
ase Industry st ed 2022
nolog ess Co., Ltd.
Corporati
y and through a
on Ltd.
Co., supp Tender Offer
Ltd. ortin on
g www.cninfo.
facilit com.cn
ies (Announce
and ment No.:
equip 2022-52).
ment
341,568,642 341,568,642
Total -- -- -- -- -- -- -- -- 514,068.16 -- -- --
.80 .80
34
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
3. Major Non-Equity Investments Ongoing in the Reporting Period
□ Applicable Not applicable
4. Financial Investments
(1) Securities Investments
Applicable □ Not applicable
Unit: RMB
Gain/ Sol
Purc
Accou Loss d
hase
Initial nting on fair Accumulate in Sourc
Variet Name d in Gain/loss
measu Beginning value d fair value Re Ending Accou e of
y of Code of of investm Rep in
remen carrying chang changes por carrying nting invest
securit security securit ent cost ortin Reporting
t value es in charged to tin value title ment
y y g Period
metho Report equity g funds
Peri
d ing Per
od
Period iod
Invest Obtain
ments ed in
Dome 400016 Gintia Fair
in Gintia
stic/Fo n A, 3,565,85 value 1,002,551. 0.0 887,838.6
、 0.00 -168,720.11 0.00 54,006.80 other n’s
reign Gintia 6.06 metho 95 0 4
420016 equity debt
stock nB d
instru restruc
ments turing
3,565,85 1,002,551. 0.0 887,838.6
Total -- 0.00 -168,720.11 0.00 54,006.80
6.06 95 0 4
(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
Net Ratio of Rel Relatio Own Credi
Executed
profit the net ate nship ershi tor’s
as
contrib profit d- betwee p of rights
Transac scheduled
uted to contrib Prici par n the the and
Transact tion or not; if Index to
Date of the Effect on the uted by ng ty transact asset liabili Disclos
ion Asset sold price not, give disclosed
sale Compa Company the sale princi tra ion invol ties ure date
party (RMB’ reasons information
ny from of the ple nsa party ved invol
0,000) and
the asset to cti and the has ved
measures
period- the on Compa been have
taken
begin to Compa or ny all been
35
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
the date ny’s not (applica transf all
of sale total ble for erred transf
(RMB’ profit related- or erred
0,000) (%) party not or
transact not
ions)
The sale of the
For details,
asset helps
see the
completely
Announceme
Longga Land Lot eliminate the
nt on the
ng No. risks of inactivity
Progress of
Branch G02408- fees and no-
the Receipt
of 0002 at compensation
of a Land
Shenzhe Baolong 7 requisition, Mark 16
Non- Requisition
n Street, Novem 19,667. among others, et Decem
-530.85 24.52% No related Yes Yes Yes Compensati
Plannin Longgang ber 57 for the Baolu valua ber
party on by a
g and District, 2022 Land, thereby tion 2022
Subsidiary
Natural Shenzhen achieving the
on
Resourc (“Baolu pre-determined
www.cninfo.
es Land” for goals of a quick
com.cn
Bureau short) realization and
(Announce
value increase of
ment No.:
state-owned
2022-48).
assets.
2. Sale of Major Equity Investments
□ Applicable Not applicable
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
Relatio
nship
with Principa Registered Operating Operating
Name l activity Total assets Net assets Net profit
the capital revenue profit
Compa
ny
Develop
Shenzhen
ment
Huangchen
Subsidi and 30,000,000. 7,657,167,638 2,972,163,4 1,615,509,012 623,535,54 468,882,70
g Real
ary sales of 00 .96 73.73 .59 1.95 8.28
Estate Co.,
real
Ltd.
estate
SZPRD Develop
Xuzhou ment -
Dapeng Subsidi and 50,000,000. 253,083,803.6 36,388,880 35,287,240
22,809,215.04 41,495,109.
Real Estate ary sales of 00 4 .48 .03
Developme real 21
nt Co., Ltd. estate
Shenzhen
Property
Internation
Subsidi manage 20,000,000. 1,678,426,626 313,016,033 1,661,030,007 85,991,459 57,825,200
al Trade
ary ment 00 .04 .66 .13 .18 .38
Center
services
Property
36
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Manageme
nt Co., Ltd.
Shenzhen Develop
SZPRD ment
Subsidi and 30,000,000. 637,397,817.9 132,669,835 125,289,644.9 283,209,12 203,146,79
Urban
ary sales of 00 5 .56 9 6.04 1.45
Renewal real
Co., Ltd. estate
Subsidiaries obtained or disposed in the Reporting Period
Applicable □ Not applicable
How subsidiary was obtained or Effects on overall operations and operating
Subsidiary
disposed in the Reporting Period performance
Shenzhen Wuhe Urban Renewal Co., Revenue: RMB18.6755 million
Newly established
Ltd. Net profit: RMB3.2644 million
Shenzhen Tonglu Wuhe Investment Revenue: RMB7.3296 million
Newly established
Development Co., Ltd. Net profit: RMB0.5998 million
Revenue: RMB0
Yangzhou Wuhe Real Estate Co., Ltd. Newly established Net profit attributable to the Company as the
parent: RMB-1.8704 million
Revenue: RMB0
Shenzhen Guomao Industrial Space
Newly established Net profit attributable to the Company as the
Service Co., Ltd.
parent: RMB0.0020 million
Shenzhen Property Management Co., Revenue: RMB156.6348 million
Acquired under common control
Ltd. Net profit: RMB1.7568 million
Revenue: RMB5.3699 million
Shenzhen Shenwu Elevator Co., Ltd. Acquired under common control
Net profit: RMB0.3131 million
Shenzhen Shenfang Real Estate Cleaning Revenue: RMB9.6523 million
Acquired under common control
Co., Ltd. Net profit: RMB-0.0753 million
Shenzhen Foreign Trade Property Revenue: RMB39.5823 million
Acquired under common control
Management Co., Ltd. Net profit: RMB2.9049 million
Shenzhen Shenfubao Property Revenue: RMB79.8539 million
Acquired under common control
Development Co., Ltd. Net profit: RMB-0.7402 million
Revenue: RMB13.6029 million
Shenzhen Fubao Urban Resource
Acquired under common control Net profit attributable to the Company as the
Management Co., Ltd.
parent: RMB0.2235 million
Shenzhen Shenfubao Hydropower Revenue: RMB47.5134 million
Acquired under common control
Municipal Service Co., Ltd. Net profit: RMB-4.5802 million
Shenzhen Free Trade Zone Security Revenue: RMB25.2621 million
Acquired under common control
Service Co., Ltd. Net profit: RMB0.0788 million
Notes to the principal subsidiaries and joint stock companies:
X Structured Bodies Controlled by the Company
□ Applicable Not applicable
XI Prospects
(I) Industry Overview and Trends
See “I Industry Overview for the Reporting Period” in “Part III Management Discussion and Analysis”.
37
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
(II) The Company’s Development Strategy
As the traditional real estate market’s development declines on the whole, various industrial resources have been continuously
occupied by the large-scale brand houses, which has threatened the survival and development of medium and small-sized property
companies. “Large-scale Enterprises Taking All Advantages” has become normal in the industry, and the positioning of “Houses are
for living in, not for speculating on” has already been established. In this case, Shenzhen Properties & Resources Development
(Group)Ltd. specialized in the traditional real estate will be confronted with the extremely severe industrial situation.
In this context, the Company put forward the “12345” overall development idea of “1 Vision + 2 Major Divisions + 3 Driving
Factors + 4 Businesses + 5 Value-added Services”. In other words, the Company will take effective measures with the focus on
“industrial and urban space asset management” and “space digital ecosystem operation” to develop four major businesses including
industrial and urban space development, industrial ecological operation, property management services, and main ecological
investment through expanding the main business and making breakthroughs. Meanwhile, the Company will realize rapid deployment
and integration of five major value-added services including high-end consulting services, customized housekeeper services,
intelligent operation platform, data tapping and commercial ecosystem integration. Base on Shenzhen with scientific and
technological innovation as the primary driving force, the Company will include Guangdong, Hong Kong and Macao metropolitan
area and surrounding areas to maximize the leverage of capital to build a door type intelligent management and control service
platform with smart society basic functions, aiming to build “China’s leading intelligent operator of industrial and urban space”.
In accordance with three-step strategic implementation route of “strengthening bases, brink breakthrough, and focus on leading”, the
Company will seek transformation and upgrading in the development base on the current development conditions, and promote
incremental development in the transformation to build unique development advantages and create a new pattern of innovation and
development of the Company.
(III) Business plan for 2023
In 2022, the management team of the Group conscientiously implemented the decisions and arrangements of the Board of
Directors and the Party Committee and carried out work around key tasks. Despite being confronted with various challenges such
as economic downturn, the group actively responded, resulting in its major performance indicators consistently ranking among the
top non-financial enterprises in the system for multiple years. Regarding project development, milestone objectives were
successfully achieved for Bangling project, Guangming Yutang Upper Mansion, and Fuchang Phase II project. Concerning capital
operation, the group made a strategic investment in China Construction Science and Industry Group's smart parking company,
which fortified the group's equity investment portfolio. In all, as the policies and mechanisms of the Group become more flexible,
the enthusiasm of cadres and employees for planning and entrepreneurship has been enhanced. Throughout the year, the Group did
not suffer any material safety incidents or material risk stability maintenance events, showing a positive and promising opening.
In 2023, the Group will adhere to the general work guideline of "seeking improvement in stability". Guided by Xi Jinping's Socialist
Thought with Chinese Characteristics for a New Era, it will deeply study and implement the spirit of the 20th CPC National
Congress, deeply understand the decisive significance of the "two establishments", resolutely fulfill the "two safeguards", grasp the
major opportunities of Shenzhen's "dual zone" drive, "dual zone" overlap and "dual reform" demonstration, and fully implement the
decision and deployment of the State-owned Assets Supervision and Administration Commission of Shenzhen. Meanwhile, it will
highlight the target-oriented, problem-oriented and result-oriented practices, focus closely on the core objective of "cash inflow" with
precise and continuous efforts, take the initiative to take charge, faithfully perform its duties, and continue to make great efforts in
"acceleration, amplification, empowerment and effectiveness".
— — Project acceleration: The Group will do a good job of co-ordination, tighten the chain of responsibility, compact the work
responsibilities, ensure the rigid constraints of time nodes, focus on solving the outstanding problems that restrict the construction of
projects, solidly promote the speed of the projects under construction again, achieve the speed-up of both node construction and sales
payment collection and promote, if necessary, the node construction should be subordinated to and serve the sales payment
collection.
——Capital amplification: The Group will seize the once-in-a-decade opportunity in the capital market to amplify the functions of
38
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
state-owned capital and to strengthen and enlarge the listed Company through the two-wheel drive of "equity and debt"; to make
good use of the advantages as a state-owned enterprise and the potential of the listing platform to "amplify" the Group's ability to
obtain resources.
— — Platform empowerment: Focusing on the three major priorities of the Group's headquarters' overseeing empowerment,
secondary platform service empowerment, and information technology empowerment, the Group will continue to promote the
downward shift of management focus and management capabilities, with the full coverage of the entire Group using Kingdee's
financial system, HR system and OA system to integrate and enhance the technical platform and service system for the Group's
digital transformation.
— — Effective achievement of indicators: Based on the principle of "long-term targets, medium-term expectations and short-term
results", the Group will strive to achieve its annual budget targets and to exceed the three-year rolling plan and reach the planned
levels. Additionally, it will ensure that the annual sales payment collection, additional financing and investment return targets are
achieved.
With a focus on the annual priority tasks, the Group will spare no effort in four work priorities, i.e., project acceleration, capital
amplification, platform empowerment and indicator effectiveness, and resolutely overcome a number of difficulties affecting the
advancement of major projects. Besides, the Group's development will be guided toward a benign track where business segments and
projects move forward together and compete for development. The Group will continue to be a pioneer in enterprise reform and
development, comprehensively accomplish the annual tasks and objectives and make new contributions to the Group's high-quality
sustainable development and the vision of building China's leading smart operator of industry-city space.
First, the Group will create conditions on the basis of the current resource endowment and business level and strive to
accomplish the leading annual indicators according to the plan. Budget targets such as annual revenue and total profit will be
achieved. Regarding the sales work, the principle of "early planning, early arrangements and early sales payment collection" will
be followed. The group will exert effort to attain the sales target for the Jinling project, deliver and complete the Fuchang Phase II
project, and ensure timely opening of projects such as Bangling, Guangming, and Humen.
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. Additionally, the pace of the Fuchang Phase II project will be advanced in an
orderly manner. The construction progress of the Sea Bay Garden project in Humen Town, Dongguan and the Yutang Shangfu project
in Guangming District, Shenzhen will be vigorously pushed forward. Continuous efforts will be put into the confirmation of land
rights for the Huiyang Danshui project, the establishment of project companies, and the scoping of the renewal unit for the Fuyuan
Industry Park project, among others.
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
39
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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. The group will leverage the chance provided by the third round of inspections
conducted by the party committee, the second round of follow-up inspections, and the resolution of issues identified in the 2022
administrative supervision and inspection to holistically enhance the group's overall management level. 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. The establishment of an all-around, multi-level incentive and restraint
mechanism involving node awards and incremental sharing will continue to be promoted, with secondary and tertiary companies
covered by the mechanism. The introduction, cultivation, employment, education and restraint of cadres will be intensified and a
talent selection and employment orientation of promoting the capable, awarding the excellent, demoting the mediocre and
dismissing the inferior will be formed. Administrative work will be pushed downward, the basic management level of secondary
platform companies and tertiary units will be enhanced significantly in the form of resident supervision, and the Group's digital
transformation planning will be prepared and implemented. The Group's industrial operation platform of "industry-university-
research-application" will be built, the industrial operation system will be improved gradually and the investment attraction
capability and level will be enhanced.
Fifth, the Group will be always vigilant about production safety, complaint letters and visits and stability maintenance. The
specific measures include strengthening risk control, safeguarding the bottom line of safe production, keeping production safety in a
stable situation, deepening the building of safe production standardization and the "dual prevention mechanism", and intensifying
regular production safety inspections. In addition, hidden risks will be collated regularly, list management will be implemented for
risk points in key areas and key processes, and remediation will be strictly carried out, to ensure that no production safety accident
occurs throughout the year. Moreover, the Group will strengthen the dynamic follow-up and implementation of material risks, keep a
close watch on wages for migrant workers and labor contract disputes, maintain a strict and tight prevention and control posture, and
resolutely safeguard stability and unity.
(IV) Potential risks
1. Market risk
Under the guidance of the policy that "houses are for living in, not for speculating on", the demand side of the real estate market
remains in the downward channel. 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
40
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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.
The above business plan and business objectives do not represent the listed Company’s profit forecast for 2023. 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 Way Index to
Type of
Date of visit of of Visitor Contents and materials provided relevant
visitor
visit visit information
The
Indivi
17 February 2022 Comp Other Individual Inquiring about land reserve situation N/A
dual
any
The
Indivi Inquiring about the disclosure time of the 2021
24 February 2022 Comp Other Individual N/A
dual annual report
any
The
Indivi Inquiring about the company's related business
24 February 2022 Comp Other Individual N/A
dual layout
any
The
Indivi Inquiring about the company's related business
13 March 2022 Comp Other Individual N/A
dual layout
any
The
Indivi Inquiring about the scope of the company's
22 March 2022 Comp Other Individual N/A
dual business
any
The Indivi
31 March 2022 Other Individual Inquiring about the disclosure time of the N/A
Comp dual
41
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
any company's quarterly report
The
Indivi
1 April 2022 Comp Other Individual Inquiring about dividend distribution N/A
dual
any
The
Indivi Inquiring about the company's fulfillment of
5 April 2022 Comp Other Individual N/A
dual social responsibility
any
The
Indivi Inquiring about the development of the
7 April 2022 Comp Other Individual N/A
dual company's main business
any
The
Indivi Inquiring about issues related to information
18 April 2022 Comp Other Individual N/A
dual disclosure
any
The
Indivi Inquiring whether the company is launching
27 April 2022 Comp Other Individual N/A
dual new businesses
any
The
Indivi Inquiring about this year's performance
28 April 2022 Comp Other Individual N/A
dual highlights
any
The
Indivi Inquiring about the impact of the "Belt and
5 May 2022 Comp Other Individual N/A
dual Road" policy on the company's operations
any
The
Indivi Inquiring about the company's land reserve
9 May 2022 Comp Other Individual N/A
dual situation and pending development projects
any
The
Indivi
25 May 2022 Comp Other Individual Inquiring about the company's profitability N/A
dual
any
The
Indivi Inquiring about the company's land reserve
26 May 2022 Comp Other Individual N/A
dual situation
any
The
Indivi
28 May 2022 Comp Other Individual Inquiring about Jinling sales situation N/A
dual
any
The
Indivi Inquiring about the group's supervision of its
28 May 2022 Comp Other Individual N/A
dual subsidiaries
any
The
Indivi
31 May 2022 Comp Other Individual Inquiring about the number of shareholders N/A
dual
any
The
Indivi
1 June 2022 Comp Other Individual Inquiring about dividend distribution N/A
dual
any
The
Indivi Inquiring about the disclosure of the annual
6 June 2022 Comp Other Individual N/A
dual report
any
The
Indivi Inquiring about the timing of periodic
7 June 2022 Comp Other Individual N/A
dual information disclosure
any
The
Indivi
8 June 2022 Comp Other Individual Inquiring about the status of properties for sale N/A
dual
any
The
Indivi Inquiring about the company's shareholder
10 June 2022 Comp Other Individual N/A
dual situation
any
The
Indivi
10 June 2022 Comp Other Individual Inquiring about dividend distribution N/A
dual
any
The
Indivi
13 June 2022 Comp Other Individual Inquiring about dividend distribution N/A
dual
any
The
Indivi Inquiring about the number of company
14 June 2022 Comp Other Individual N/A
dual shareholders
any
The Indivi
15 June 2022 Other Individual Inquiring about the company's future N/A
Comp dual
42
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
any development plan
The
Indivi
15 June 2022 Comp Other Individual Inquiring about the company's investment plan N/A
dual
any
The
Indivi
16 June 2022 Comp Other Individual Inquiring about land reserve situation N/A
dual
any
The
Indivi Inquiring about the company's future
17 June 2022 Comp Other Individual N/A
dual development plan
any
The
Indivi
23 June 2022 Comp Other Individual Inquiring about dividend distribution N/A
dual
any
The
Indivi Inquiring about the Guanlan Bangling project
1 July 2022 Comp Other Individual N/A
dual situation
any
The
Indivi Inquiring about the company's future
21 July 2022 Comp Other Individual N/A
dual development plan
any
The
Indivi Inquiring about solutions to industry
28 July 2022 Comp Other Individual N/A
dual competition
any
The Inquiring about the state-owned enterprise
Indivi
1 August 2022 Comp Other Individual reform by the State-owned Assets Supervision N/A
dual
any and Administration Commission
The
Indivi Inquiring about the number of company
27 November 2022 Comp Other Individual N/A
dual shareholders
any
The
Indivi Inquiring about the company's future
29 November 2022 Comp Other Individual N/A
dual cooperation plan
any
The
Indivi Inquiring about the company's business
7 December 2022 Comp Other Individual N/A
dual development situation
any
The Inquiring about the company's measures to
Indivi
9 December 2022 Comp Other Individual cope with the real estate industry's refinancing N/A
dual
any policy
The
Indivi Providing suggestions for the company's
10 December 2022 Comp Other Individual N/A
dual development
any
43
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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
independent from the shareholders or other related parties in personnel management, social security, salary etc. In aspect of asset:
44
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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 Progress and
Type of Company Cause of
with the Company name Solution subsequent
problem nature problem
Company plan
Shenzhen
Horizontal Controlling Investment
Other Note 1 Note 2 Note 3
competition shareholder Holdings Co.,
Ltd.
Note 1: According to the overall plan of the Shenzhen Municipal Government on the restructuring of the state-owned assets
management system, the State-owned Assets Supervision and Administration Commission of the People's Government of
Shenzhen Municipal decided to establish Shenzhen Investment Holdings Co., Ltd. (SIHC), merging Shenzhen Investment
Holdings Co., Ltd., Shenzhen Management-Investment Company and Shenzhen Trade Investment Holdings Co., Ltd. As a result,
SIHC inherited 63.82% of the equity interests in the listed company ShenZhen Properties & Resources Development (Group) Ltd.
(SZPRD) held by Shenzhen Investment Holdings Co., Ltd. and Shenzhen Management-Investment Company in accordance with
the law. On 19 October 2018, SIHC obtained the Confirmation of Securities Transfer Registration regarding the equity interest of
SZPRD and completed the transfer of the equity interest in SZPRD. In view of the fact that Shenzhen Construction Development
(Group) Company (“Shenzhen Construction Development”), ShenZhen Special Economic Zone Real Estate & Properties (Group)
Co., Ltd. (“SPG”) and SZPRD, all wholly-owned subsidiaries of SIHC, are operating real estate development and commercial
property sales business, which belong to the same industry, and there is competition in the same industry.
Note 2: To avoid horizontal competition, SIHC make the following commitments: 1. On the horizontal competition solution of
Shenzhen Construction Development: as the holding shareholder of the Listed Company, during the listing period at Shenzhen
Stock Exchange of the Listed Company, as for the current business of Shenzhen Construction Development which has horizontal
competition with the Listed Company, within the scope permitted by law and regulation, within 12 months from the equity of
SZPRD being transferred to SIHC, SIHC will start the solution with practical operability among below horizontal competition
solution timely 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
45
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
solving current horizontal competition, while company, enterprise, economic organization (not including enterprises controlled by
the Listed Company, hereinafter referred to as subordinated Companies) which the Listed Company and SIHC hold controlling
shares or controls actually have business, in case the involved dispute, etc. have major influence on the business, SIHC should
keep neutral as a controlling shareholder to ensure that the Listed Company and subordinated Companies can take part in market
competition on the principle of fair competition. 2. Horizontal competition solution of SPG: From 14 September 2016 to now,
SPG has had stock suspension because of major assets restructuring. According to Review Opinions on Delaying Stock Resumption
because of Major Assets Restructuring of SPG announced by CITIC Securities and Huatai Securities on 26 November 2016, the
restructuring solution is that SPG plans to issue A share and / or use currency to purchase 100% equity of Evergrande Group
(hereinafter referred to as “the restructuring of SPG”). Guangzhou Chiron Real Estate Co., Ltd. will be the controlling shareholder
of SPG upon the completion of the restructuring of SPG. If the restructuring of SPG is completed, SIHC will cease to control SPG,
which means there will be no horizontal competition between SPG and SZPRD. If the restructuring of SPG is terminated, for
business of SPG which has horizontal competition with the Listed Company, SIHC, within the scope permitted by law and
regulation, SIHC will start a rational horizontal competition solution according to actual situation at the time within 12 months
after the termination of reconstruction of SPG and stock resumption announcement date, and fulfill announcement obligation, and
SPG will complete to implement the solution and solve the horizontal competition between SZPRD and SPG within 3 years from
the date SPG terminates the reconstruction and announces stock resumption. 3. Other commitments to avoid horizontal
competition: as the controlling shareholder of the Listed Company and during the listing period of the Listed Company at
Shenzhen Stock Exchange, other subordinated Companies of SIHC will not engage in relevant business which has direct
horizontal business competition with the Listed Company in new business fields except for in the business field where it already
has had horizontal competition with the Listed Company. Shenzhen Investment Holdings promises not to seek improper benefits
with the position of controlling shareholder of the Listed Company and damage the interest of the Listed Company and its
shareholders. In case of violating above commitment, SIHC shall undertake corresponding legal liabilities, including but not
limited to undertaking compensation responsibilities for all losses caused to the Listed Company.
Note 3: SIHC has always been actively committed to fulfilling its relevant commitments. During the term of commitment, SIHC
did not seek any illegitimate interests as the controlling shareholding of SZPRD or damage any rights and interests of SZPRD and
its shareholders. During the term of commitment, SIHC actively collated the underlying assets and businesses of Shenzhen
Construction Development (Group) Company and devoted itself to developing practical and feasible plans as soon as possible to
solve the horizontal competition issue for SZPRD. It also actively promoted the restructuring of SPG. However, given the
objective circumstances, SIHC failed to fulfill the original commitment to avoid horizontal competition. SIHC re-issued the Letter
on Changing the Commitment to Avoiding Horizontal Competition on 31 August 2021 and such commitment change matter was
approved at the first extraordinary general meeting of 2021 held on 27 September 2021. For more details, see the Announcement
on the Application by the Company's Controlling Shareholder for Changing the Commitment to Avoiding Horizontal Competition
(Announcement No.: 2021-32) disclosed by the Company on www.cninfo.com.cn on 11 September 2021.
IV Annual and Special General Meetings Convened during the Reporting Period
1. General Meeting Convened during the Reporting Period
Investor
Meeting Type participati Date of the meeting Disclosure date Resolutions
on ratio
The reports and proposals
deliberated and approved at the
The 2021
Annual meeting included the Report on the
Annual
General 60.68% 17 May 2022 18 May 2022 Work of the Board of Directors in
General
Meeting 2021, the Report on the Work of the
Meeting
Board of Supervisors in 2021, the
2021 Annual Report, the 2021
46
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Financial Accounts Report, the
2022 Financial Budget Report, the
Plan on Profit Distribution and
Capitalization from Capital Reserve
in 2021, the Proposal on the
Comprehensive Credit Line for
2022, the Proposal on Estimated
Routine Related-party Transactions
for 2022 and the Proposal on
Renewing the Engagement of
Accounting Firm. For details,
please refer to the Announcement
on the Resolutions of the 2021
Annual General Meeting (No.:
2022-19) on www.cninfo.com.cn.
During the meeting, the proposals
below were reviewed and approved:
"Participation of the Subsidiary in
the Dongguan Humen Chigang
Community 2021WR023 Land Use
Rights Auction and Subsequent
Land Development", "Participation
of the Company in the Shenzhen
Guangming Yutang A606-0258
Land Use Rights Auction and
The 1st Subsequent Land Development",
Extraordinary Extraordinar "Purchase of Liability Insurance for
General y General 59.98% 20 July 2022 21 July 2022 Directors, Supervisors, and Senior
Meeting of Meeting Management" and "Election of Mr.
2022 Ma Hongtao as the Shareholder
Representative Supervisor of the
Tenth Supervisory Board of the
Company". For additional
information, please refer to the
announcement of resolutions made
at the 2022 First Extraordinary
Shareholders' Meeting, with the
reference number 2022-31 on the
China Securities Regulatory
Commission Information Network.
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
Be In D Ot En Re
gi cr ec he di aso
nn ea re r ng n
Incum
Gende in se as in sh for
Name Office title bent/F Age Start of tenure End of tenure
r g in e cr ar sha
ormer
sh th in ea eh re
ar e th se/ ol cha
eh Re e de di nge
47
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
ol po Re cr ng
di rti po ea (s
ng ng rti se ha
(s Pe ng (s re)
ha rio Pe ha
re) d rio re)
(s d
ha (s
re) ha
re)
Liu Party Secretary and
Incum
Shengxi Chairman of the Male 52 15 June 2018 26 September 2024
ang Board bent
Wang Director, Deputy Incum
Male 57 15 June 2018 26 September 2024
Hangjun Party Secretary, GM bent
Zhang Director, Deputy Incum
Male 46 29 June 2022 26 September 2024
Zhimin Party Secretary bent
Shen Incum Femal
Director and CFO 54 15 June 2018 26 September 2024
Xueying bent e
Wang Incum
Director Male 52 15 June 2018 26 September 2024
Ge bent
Xie Incum
Director Male 51 7 April 2020 26 September 2024
Chang bent
Mei
Independent Incum
Yongho Male 59 15 June 2018 26 September 2024
Director bent
ng
Li Independent Incum
Male 51 27 September 2021 26 September 2024
Donghui Director bent
Hu Independent Incum Femal
41 27 September 2021 26 September 2024
Caimei Director bent e
Chairman of the
Ma Incum
Supervisory Male 55 21 July 2022 26 September 2024
Hongtao bent
Committee
Zhang Incum
Supervisor Male 48 15 June 2018 26 September 2024
Manhua bent
Li Incum
Supervisor Male 41 15 June 2018 26 September 2024
Qinghua bent
Employee
Supervisor,
Wang Executive Director Incum Femal
53 15 June 2018 26 September 2024
Qiuping of ITC Park, bent e
Secretary of the
Party Committee
Employee
Supervisor,
Discipline
Gu Inspection Director, Incum Femal
42 15 June 2018 26 September 2024
Weimin Deputy Secretary of bent e
the Discipline
Inspection
Commission
Member of the Party
Chen Incum
Committee and Male 54 28 December 2020 26 September 2024
Hongji bent
Deputy GM
Member of the Party
Incum Femal
Cai Lili Committee and 51 15 June 2018 26 September 2024
Deputy GM bent e
Member of the Party
Incum
Li Peng Committee and Male 47 15 June 2018 26 September 2024
Deputy GM bent
Member of the Party
Zhang Incum
Committee, Deputy Male 48 15 June 2018 26 September 2024
Gejian bent
GM and Board
48
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Secretary
Wei
Director, Deputy Forme
Xiaodon Male 53 15 June 2018 29 June 2022
Party Secretary r
g
Chairman of the
Supervisory
Committee and
Dai Forme
Secretary of the Male 61 15 June 2018 20 July 2022
Xianhua r
Discipline
Inspection
Commission
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
(1) Mr. Wei Xiaodong submitted a written resignation report on 29 June 2022, with his resignation effective immediately upon
receipt by the company.
(2) Mr. Dai Xianhua submitted a written resignation report to the company on 4 July 2022, with his resignation taking effect on 20
July 2022, when a new supervisor was elected at the company's shareholder meeting.
Change of directors, supervisors and senior management:
Applicable □ Not applicable
Name Office title Type of change Date of change Reason for change
Director, Deputy Party
Wei Xiaodong Former 29 June 2022 Reappointment
Secretary
Chairman of the
Supervisory Committee and
Dai Xianhua Former 20 July 2022 Retirement
Secretary of the Discipline
Inspection Commission
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
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.
49
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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 Chairman of the Board of BGI Agricultural Group (starting from September 2015), Vice
president of Country Garden Group & CEO of Country Garden Holdings Co. Ltd. (starting from August 2018).
Mr. Li Donghui, born in June 1976, is a graduate with a bachelor's degree from the Audit Department of the Economics and
Management School of Wuhan University and received a PhD degree in Accounting and Finance at the University of New South
Wales Business School, Australia. He once worked as a civil servant at the Department of Financial System Audit of the National
Audit Office of the People's Republic of China and as the Executive Dean of the School of Management, Jinan University. He is
currently a distinguished professor of accounting and finance and doctoral supervisor at the College of Economics Shenzhen
University and the Director of the Committee of Professors of the college. Many of his articles were published in top international
journals and key authoritative academic journals of China. He was named a talented person of Shenzhen's overseas high-level
"Peacock Plan" and served as an expert of the Senior Title Review Committee of the Shenzhen Financial Bureau, an expert of the
Xinshen Communication Think-tank of Shenzhen Press Group and a reviewer of the National Natural Science Foundation of China.
Ms. Hu Caimei, born in September 1982, is a Doctor of Management, Postdoctoral Fellow in Economics, Associate Professor and
backup talent of Shenzhen. She currently serves as the Deputy Director of the Institute of Financial Development and State-owned
Assets and Enterprises, China Development Institute and has been long engaged in policy research and consultation in finance and
50
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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 was born in October 1968 and holds 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
(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
51
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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
Remunera
tion or
Office held in the allowance
Name Shareholding entity Start of tenure End of tenure
shareholding entity from the
sharehold
ing entity
Shenzhen Investment
Wang Ge Chief Engineer 1 March 2017 Yes
Holdings Co., Ltd.
Director of the general
Shenzhen Investment
Xie Chang management department 7 April 2020 Yes
Holdings Co., Ltd.
Director of the legal and
Zhang Shenzhen Investment
risk management 1 January 2017 Yes
Manhua Holdings Co., Ltd.
department
Li Shenzhen Investment Deputy director of the
1 January 2017 Yes
Qinghua Holdings Co., Ltd. audit department
Except for the major offices held concurrently in shareholding entities above, Directors Wang Ge and Xie Chang, as
Note 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:
52
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Applicable □Not applicable
Remuneration
Office held in the End of or allowance
Name Other entity Start of tenure
entity tenure from the
entity
Shen China Shenzhen Foreign Trade (Group) Chief Financial
1 March 2020 No
Xueying Co., Ltd. Officer
Chairman of BGI
Agricultural Group,
Mei Vice president of
Yongho BGI Agricultural Group, County Garden County Garden 1 September 2015 Yes
ng Group & CEO of
Country Garden
Holdings Co. Ltd.
Distinguished
professor, doctoral
supervisor, director
Li
Shenzhen University of the Professor 1 April 2019 Yes
Donghui
Committee of the
School of
Economics
Deputy Director of
the Institute of
Hu Financial
China (Shenzhen) Development Institute 1 November 2016 Yes
Caimei Development and
State-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 2022, conducted appraisal system integrating operation indicators, classification indicators with management
objectives. After the end of this Reporting Period, assessment was implemented by the board. Remuneration of senior executives
was determined according to “Management Method of Annual salary System of Directors, Supervisors and Senior Executives of
ShenZhen Properties & Resources Development (Group) Ltd.” and “Long-term Incentive-and-Restraint Mechanism of ShenZhen
Properties & Resources Development (Group) Ltd.” and need to be implemented after the annual assessment of the board.
Remuneration of directors, supervisors and senior management for the Reporting Period
Unit: RMB'0,000
Total before-tax remuneration from the Company Any
Incum during the Reporting Period remun
Gen
Name Office title Age bent/F eratio
der
ormer Total Of which n from
related
53
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Fee for party
director/sup
Mandated ervisor
Salaries
benefits and/or
meeting
allowances
Liu
Party Secretary and Mal Incum
Shengxian 52 122.33 93.48 28.85 N/A No
Chairman of the Board e bent
g
Wang Mal Incum
Director, GM 57 116.36 88.12 28.24 N/A No
Hangjun e bent
Zhang Director, Deputy Party Mal Incum
46 50.89 39.14 11.75 N/A No
Zhimin Secretary e bent
Wei Director, Deputy Party Mal Forme
53 43.53 36.06 7.47 N/A No
Xiaodong Secretary e r
Shen Fem Incum
Director and CFO 54 140.79 118.52 22.27 N/A No
Xueying ale bent
Mal Incum
Wang Ge Director 52 0 0 0 N/A Yes
e bent
Xie Mal Incum
Director 51 0 0 0 N/A Yes
Chang e bent
Mei Mal Incum
Independent Director 59 8 8 0 N/A Yes
Yonghong e bent
Li Mal Incum
Independent Director 51 8 8 0 N/A No
Donghui e bent
Hu Fem Incum
Independent Director 41 8 8 0 N/A No
Caimei ale bent
Ma Chairman of the Mal Incum
54 64.64 53.68 10.96 N/A No
Hongtao Supervisory Committee e bent
Chairman of the
Dai Supervisory Committee, Mal Forme
61 59.41 52.05 7.36 N/A No
Xianhua Secretary of Committee e r
for Discipline Inspection
Zhang Mal Incum
Supervisor 48 0 0 0 N/A Yes
Manhua e bent
Li Mal Incum
Supervisor 41 0 0 0 N/A Yes
Qinghua e bent
Employee supervisor,
Wang executive director of ITC Fem Incum
53 87.03 68.93 18.1 N/A No
Qiuping Technology Park, Party ale bent
Secretary
Employee supervisor,
Director of Discipline
Gu Inspection Office, and Fem Incum
42 85.75 69.59 16.16 N/A No
Weimin Deputy Secretary of the ale bent
Discipline Inspection
Commission
Chen Member of the Party Mal Incum
54 105.33 82.37 22.96 N/A No
Hongji Committee, Vice GM e bent
Member of the Party Fem Incum
Cai Lili 51 105.33 82.37 22.96 N/A No
Committee, Vice GM ale bent
Member of the Party Mal Incum
Li Peng 47 105.33 82.37 22.96 N/A No
Committee, Vice GM e bent
Member of the Party
Zhang Mal Incum
Committee, Vice GM, 48 103.24 80.28 22.96 N/A No
Gejian e bent
Board Secretary
Total -- -- -- -- 1,213.96 -- --
Pay Statement:
54
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
(1) The pay comprises of a fixed salary, 2021 performance bonus, and communication allowance. The company provides statutory
benefits, including social insurance, enterprise annuity, and housing provident fund, in compliance with regulations.
(2) The table does not incorporate the 2021 long-term incentive bonuses granted to directors Liu Shengxiang, Wang Hangjun, Wei
Xiaodong, and senior managers Chen Hongji, Cai Lili, Li Peng, and Zhang Gejian. The bonuses amount to RMB849,100,
RMB591,200, RMB487,000, RMB208,800, RMB384,800, RMB243,200, and RMB245,800, respectively, and will be paid in
2022. The estimated long-term incentive bonuses for the mentioned directors and senior managers in 2021 conform to the relevant
rules and regulations. However, the actual payment amount will prevail.
(3) All of the mentioned bonuses are pre-tax amounts.
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
Rewrite: The board of directors approved
various proposals, including Appointment of the
General Manager of the Company,
Appointment of Vice General Manager and
Financial Officer of the Company, and
Appointment of the Chief Financial Officer of
The 6th Meeting of the 10th
21 February 2022 22 February 2022 the Company. For more details, please refer to
Board of Directors
the Announcement of the Resolutions of the
Sixth Meeting of the Tenth Board of Directors,
with the identification number of 2022-03, on
the website of the China Securities Regulatory
Commission (CSRC) Information Disclosure
website.
The board of directors has given their approval
to several proposals, such as Signing Post
Appointment Agreements and Term Business
Performance Responsibility Letters by
Members of the Company's Management
Proposal and Formulating the Authorization
Management Measures of the Board of
The 7th Meeting of the 10th
3 March 2022 4 March 2022 Directors of ShenZhen Properties & Resources
Board of Directors
Development (Group) Ltd. to the Management
Proposal, among others. Additional information
can be found in the announcement of the
Seventh Meeting's Resolutions of the Tenth
Board of Directors, identified as 2022-07, on
the China Securities Regulatory Commission
(CSRC) Information Disclosure website.
The board of directors has approved a range of
proposals, which include the Work Report of the
Board of Directors for 2021, Annual Report for
2021, Financial Final Account Report for 2021,
Financial Budget Report for 2022, Proposal on
The 8th Meeting of the 10th Provision and Reduction of Various Asset
29 March 2022 30 March 2022
Board of Directors Impairment Reserves, Proposal on Profit
Distribution and Capitalization of Reserve
Fund for 2021, Proposal on Comprehensive
Credit Limits and Financing Limits for 2022,
Proposal on Operating Plan and Investment
Plan for 2022, Internal Control Evaluation
55
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Report for 2021, Proposal on Estimated
Routine Related Transactions for 2022, and
Proposal on Renewing the Engagement of
Accounting Firm. Further details are available
in the Announcement of the Board of Directors'
Resolutions, identified as 2022-10, on the
China Securities Regulatory Commission
(CSRC) Information Disclosure website.
The board of directors has given their approval
to several proposals, such as the Proposal on
Signing Performance Target Responsibility
Letters for Senior Management in 2022,
Proposal on Convening the 2021 Shareholders'
The 9th Meeting of the 10th Meeting, Company's First Quarter Report for
26 April 2022 27 April 2022
Board of Directors 2022, among others. Additional information can
be found in the Announcement of the Board of
Directors' Resolutions, identified as 2022-16,
on the China Securities Regulatory
Commission (CSRC) Information Disclosure
website.
The board of directors has approved multiple
proposals, such as the Proposal on Subsidiaries
Participating in Bidding for the Use Right of
Land No. 2021WR023 in Chigang Area of
Humen, Dongguan and Subsequent Land
Development, Proposal on Company's
Participation in Bidding for the Use Right of
Land A606-0258 in Yutang, Guangming,
Shenzhen and Subsequent Land Development,
Proposal on Purchasing Liability Insurance for
Directors, Supervisors and Senior
Management, Proposal on Convening the First
Extraordinary General Meeting of 2022,
The 10th Meeting of the 10th Proposal on Changing the Name of the Audit
4 July 2022 5 July 2022
Board of Directors Committee of the Board of Directors, Proposal
on Adjusting the List of Members of Some
Special Committees of the 10th Board of
Directors, Proposal on the Performance
Commitment Completion of ITC Technology
Park Shenzhen ITC Technology Park Service
Co., Ltd. (formerly Shenzhen Toukong Property
Management Co., Ltd. (TK Property) for 2019-
2021, and others. For more information, please
refer to the Announcement of the Resolutions of
the Tenth Meeting of the Tenth Board of
Directors, identified as 2022-22, on the China
Securities Regulatory Commission (CSRC)
Information Disclosure website.
56
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
During the meeting, the board of directors
passed the 2022 Interim Report of the Company
and the Proposal on Revising the Internal
Control System of ShenZhen Properties &
The 11th Meeting of the 10th Resources Development (Group) Ltd.. To learn
26 August 2022 29 August 2022
Board of Directors more about these matters, please refer to the
Announcement of Board Resolutions for the
Interim Report with the number 2022-37, which
can be found on the China Securities Journal
Information Network.
The 2022 Third Quarter Report of the Company
was passed during the meeting. For further
The 12th Meeting of the 10th information, please see the 2022 Third Quarter
28 October 2021 31 October 2022
Board of Directors Report with the reference number 2022-42 on
the China Securities Journal Information
Network.
During the meeting, the Proposal on
Formulating the Company's '14th Five-Year
Plan' Strategic Plan and the Proposal on
Subsidiaries Signing Land Compensation
The 13th Meeting of the 10th Agreements were passed. For more information,
7 November 2022 8 November 2022
Board of Directors please consult the Announcement of Board
Resolutions for the 13th Meeting of the 10th
Board of Directors with the reference number
2022-44, available on the China Securities
Journal Information Network.
The Board of Directors deliberated and
approved the Proposal for Wholly-owned
Subsidiaries to Sign Agreements with Related
Parties and Related Party Transactions. For
The 14th Meeting of the 10th
23 December 2022 24 December 2022 details, please refer to the Announcement of
Board of Directors
Board Resolution on the 14th Meeting of the
10th Board of Directors with the number 2022-
49 on the website of the CSRC GEM
Information Disclosure System.
The Board of Directors deliberated and
approved the Proposal on the Results of the
Company's 2021 Executive Assessment and Its
Application Plan and the Proposal for Wholly-
owned Subsidiaries to Sign Property Service
The 15th Meeting of the 10th
30 December 2022 31 December 2022 Contracts with Related Parties and Related
Board of Directors
Party Transactions. For details, please refer to
the Announcement of Board Resolution on the
15th Meeting of the Tenth Board of Directors
with the number 2022-53 on the website of the
CSRC GEM Information Disclosure System.
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)
57
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Liu
10 1 9 0 0 No 2
Shengxiang
Wang
10 1 9 0 0 No 2
Hangjun
Shen
10 1 9 0 0 No 2
Xueying
Wang Ge 10 1 9 0 0 No 2
Xie Chang 10 1 9 0 0 No 2
Mei
10 1 9 0 0 No 2
Yonghong
Li Donghui 10 1 9 0 0 No 2
Hu Caimei 10 1 9 0 0 No 2
Zhang
6 0 6 0 0 No 1
Zhimin
Wei
4 1 3 0 0 No 1
Xiaodong
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
Number
Specific
of Important
Other dispute
Name of meeting comments
Members Date of meeting Contents performance d
committee s and
of duties matters
conven suggestions
(if any)
ed
Guiding the
Strategic preparation of
Liu Shengxiang,
Development the Company's
Wang Hangjun,
and Deliberation on the Proposal for Formulating the strategic
Zhang Zhimin, 1 4 November 2022 Agree
Investment Company's "14th Five-Year" Strategic Plan planning
Wang Ge, Xie
Decision during the
Chang
Committee "14th Five-
year Plan"
58
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
period.
Review of the company's 2021 annual audit report
25 January 2022 Agree
and the 2022 annual audit work plan.
1. Review of the company's 2021 annual
consolidated financial statements audit report; 2.
25 March 2022 Review of the company's 2021 internal control Agree
audit report; 3. Review of the proposal for Supervising
reappointment of the accounting firm. the work of
external audit
1. Deliberation on the Inspection Report on the agencies and
Company's 2021 Guarantee, Related Party the Company's
Transactions and Other Matters; 2. Deliberation internal audit
29 March 2022 on the 2021 Internal Control System Work Report work;
Agree
and its Annex of SZPRD; 3. Deliberation on the supervising the
2022 Major Risk Assessment Report and its Annex implementatio
of SZPRD. n of the
Li Donghui, Wang
Company's
Hangjun, Wei
internal
Audit and Risk Xiaodong (former), 1. Review of the progress of the company's 2022
6 control
Committee Zhang Zhimin, Mei Q1 internal audit work; 2. Review of the quarterly
25 April 2022 policies;
Yonghong, and Hu tracking and monitoring table of major risks (Q1 Agree
coordinating
Caimei 2022). the
communicatio
1. Deliberation on the company's 2022 half-year n of the
report; 2. Review of the progress of the company's management,
2022 Q2 internal audit work; 3. Review of the internal audit
Inspection Report on the Company's Guarantee, departments
Related Party Transactions and Other Matters in and relevant
22 August 2022 the First Half of 2022; 4. Review of the Agree departments
Development Plan for Risk Management and with external
Internal Control of SZPRD (Review Draft); 5. audit agencies.
Review of the Guidelines for the Construction of
Risk, Internal Control, and Compliance System of
SZPRD (Review Draft).
Review of the progress of the company's 2022 Q3
27 October 2022 Agree
internal audit work
Studying the
Deliberation on the proposal regarding the 2021
assessment
16 May 2022 performance assessment results of the group Agree standards,
company
remuneration
policies and
plans for the
Company's
directors and
senior
management
personnel;
supervising the
1. Discussion of the 2021 Annual Performance
performance
Hu Caimei, Mei Evaluation Plan for Senior Management of the
of duties by
Remuneration Yonghong, Li Group; 2.Examination of the 2021 Individual
the Company's
and Evaluation Donghui, Xie 2 Duty Reports of Senior Management of SZPRD; 3.
directors and
Committee Chang, Shen Review of the Completion Status Chart for
senior
Xueying 28 November 2022 Annual Performance Objectives of Senior Agree management
Management of SZPRD; 4. Consideration of the
personnel;
supplementary and veto items for the 2021 senior
conducting
management assessment;5. Deliberation on the
annual
roster of personnel accountable for the 2021
performance
senior management assessment.
assessment on
the Company's
directors and
senior
management
personnel and
offering
suggestions.
59
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Studying the
size and
constitution of
the Board of
Mei Yonghong, Liu
The verification and examination of Shen Directors and
Nomination Shengxiang, Wang
1 14 February 2022 Xueying's eligibility for the position of CFO in the Agree its special
Committee Ge, Hu Caimei and
company committees
Li Donghui
and offering
suggestions to
the Board of
Directors.
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
9,232
period-end
Total number of in-service employees at the period-end 9,330
Total number of paid employees in the Reporting Period 9,330
Number of retirees to whom the Company as the parent or its
0
major subsidiaries need to pay retirement pensions
Functions
Function Employees
Production 6,863
Sales 175
Technical 1,416
Financial 201
Administrative 421
R&D 37
Managerial 217
Total 9,330
Educational backgrounds
Educational background Employees
Junior college and technical secondary school and above 3527
Senior high school and below 5803
Total 9,330
60
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
2. Employee Remuneration Policy
To align with the group's development strategy requirements in 2022, the group company implemented a performance-based
assessment and management system for managers of subordinate enterprises. This system established clear rules for utilizing
various types of assessment results in the annual assessment of manager members, resulting in increased work efficiency and
enhanced effectiveness of the compensation and performance management system. 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 2022, the group company prioritized the creation of a learning organization and made significant efforts to construct its training
center. It worked towards optimizing its training system to meet the enterprise's development strategy and the personal
development goals of its employees. The company offered courses to enhance management abilities, improve professional skills,
and upgrade job skills for employees at all levels. This objective was to continuously enhance the employees' professional
knowledge, business capabilities, and execution skills, aligning the company's development with the growth of its employees,
thereby providing robust support for the group's strategic planning and development.
4. Labor Outsourcing
□ Applicable Not applicable
X Profit Distributions (in the Form of Cash and/or Stock)
How the profit distribution policy, especially the cash dividend policy, was formulated, executed or revised in the Reporting Period:
□ Applicable Not applicable
Indicate by tick mark whether the Company fails to put forward a cash dividend proposal despite the facts that the Company has
made profits in the Reporting Period and the profits of the Company as the parent distributable to shareholders are positive.
□ Applicable Not applicable
Final dividend plan for the Reporting Period:
Applicable □ Not applicable
Bonus shares for every 10 shares (share) 0
Dividend for every 10 shares (RMB) (tax inclusive) 3.61
Total shares as the basis for the profit distribution 595,979,092
proposal (share)
Cash dividends (RMB) (tax inclusive) 215,148,452.21
Cash dividends in other forms (such as share repurchase)
0.00
(RMB)
Total cash dividends (including those in other forms)
215,148,452.21
(RMB)
Distributable profit (RMB) 1,105,473,319.87
Total cash dividends (including those in other forms) as %
100%
of total profit distribution
Cash dividend policy
61
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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
RMB3.61 (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. The Board of Directors of the Company is in full charge of the
development, implementation and improvement of the Company's internal control system and carries out regular inspections and
effect assessments on internal control. Besides, it serves as the highest decision-making body and the ultimately responsible unit for
the Company's comprehensive risk management and is responsible for the effectiveness of the Company's comprehensive risk
management. The Audit and Risk Management Committee under the Board of Directors is accountable to the Board of Directors and
is under the direct leadership of the Board of Directors. The Audit and Risk Management Committee carries out various work
through internal audit departments, such as supervising and inspecting the implementation of the internal control system, assessing
the effectiveness of internal control and offering suggestions on how to improve internal control and correct mistakes. The Board of
Supervisors is in charge of supervising and inspecting the implementation of internal control and the establishment, improvement and
implementation of the risk management system.
The company persisted in promoting the optimization of the risk management and internal control system and the standardization
of the financial management system project in 2022. It established operational standards and tool forms for the risk management
and internal control manual and completed the review and promotion training for all optimization project results. The company
will continue to optimize the system in the later period.
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
Inte Problems Settl Follo
Name of
Integration plan grati encountered in Solutions taken eme w-up
company
on integration nt settle
62
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
prog prog ment
ress ress plan
1. Formulate a plan
1. Guarantee the stability of the existing
to reform the
business while gradually implementing
employment
Shenzhen Property's standardized
mechanism that is
business system.
market-driven.
2.Ensure the stability of the workforce The The
2.Systematically
by integrating human resource wor wor
integrate human
management into the Shenzhen Property k is 1. Disparities k is
resources
system. bein exist in the salary bein
management into
3. Drive the integration of the OA office g and benefits g
Shenzhen the Shenzhen None
and financial management systems. prog framework. prog
Property Property at the
4. Consolidate the property management ress 2.The pool of ress
Management management mome
sector system, establish clear labor ed officials in reserve ed
Co., Ltd. system. nt
divisions and promote collaboration as is inadequate to as
fulfill business 3. Enhance and
among diverse professional firms, per per
requirements. gradually build up
enhance professional skills, bolster the the
the pool of officials
marketization and core competitiveness. plan plan
through internal
5. Formulate strategies to enhance the . .
competition,
quality and efficiency of each company,
market-driven
and gradually implement measures to
recruitment, and
reduce losses and transform losses into
training
profits.
mechanisms.
1.Formulate a plan
to reform the
employment
mechanism that is
market-driven.
2.Systematically
1.Guarantee the stability of the existing
integrate human
business while gradually implementing
resources
Shenzhen Property's standardized
management into
business system.
the Shenzhen
2. Ensure the stability of the workforce The 1. Inadequate pool The
Property
by integrating human resource wor of officials in wor
management
management into the Shenzhen Property k is reserve. k is
system.
system. bein 2. Disparities bein
Shenzhen 3. Prepare a list of
3. Drive the integration of the OA office g exist in the salary g
Shenfubao authority None
and financial management systems. prog and benefits prog
Hydropower management for at the
4.Consolidate the property management ress framework. ress
Municipal water and electricity mome
sector system, establish clear labor ed 3.Subpar standard ed
Service Co., engineering, clarify nt
divisions and promote collaboration as of business. as
Ltd. the limits of the
among diverse professional firms, per 4. Considerable per
company's rights
enhance professional skills, bolster the pressure to curtail the
and responsibilities,
marketization and core competitiveness. plan losses and achieve plan
and rigorously
5.Formulate strategies to enhance the . profitability. .
manage compliance
quality and efficiency of each company,
risks.
and gradually implement measures to
4.Develop strategies
reduce losses and transform losses into
to enhance quality
profits.
and efficiency,
lower costs,
enhance quality, and
gradually reverse
the loss-making
trend.
Shenzhen 1.Guarantee the stability of the existing The 1. Inadequate pool 1.Formulate a plan The None
Shenfubao business while gradually implementing wor of officials in to reform the wor at the
63
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Property Shenzhen Property's standardized k is reserve. employment k is mome
Development business system. bein 2.Disparities exist mechanism that is bein nt
Co., Ltd. 2. Ensure the stability of the workforce g in the salary and market-driven. g
by integrating human resource prog benefits 2.Systematically prog
management into the Shenzhen Property ress framework. integrate human ress
system. ed 3.Subpar standard resources ed
3. Drive the integration of the OA office as of business. management into as
and financial management systems. per 4. Considerable the Shenzhen per
4. Consolidate the property management the pressure to curtail Property the
sector system, establish clear labor plan losses and achieve management plan
divisions and promote collaboration . profitability. system. .
among diverse professional firms, 3. In the case of
enhance professional skills, bolster pivotal park
marketization and core competitiveness. projects, incorporate
5.Formulate strategies to enhance the Shenzhen Property's
quality and efficiency of each company, standardized
and gradually implement measures to operating
reduce losses and transform losses into procedures, while
profits. aligning with
individualized
business practices,
to enrich the
customer service
experience.
Additionally,
engage with the
party A entities to
enhance the
charging criteria
and streamline
service
requirements.
4. Develop
strategies to
enhance quality and
efficiency, lower
costs, enhance
quality, and
gradually reverse
the loss-making
trend.
1. Guarantee the stability of the existing 1. Formulate a plan
business while gradually implementing to reform the
Shenzhen Property's standardized The 1. Inadequate pool employment The
business system. wor of officials in mechanism that is wor
2. Ensure the stability of the workforce k is reserve. market-driven. k is
by integrating human resource bein 2. Disparities 2. Systematically bein
Shenzhen Free management into the Shenzhen Property g exist in the salary integrate human g
None
Trade Zone system. prog and benefits resources prog
at the
Security 3. Drive the integration of the OA office ress framework. management into ress
mome
Service Co., and financial management systems. ed 3.Subpar standard the Shenzhen ed
nt
Ltd. 4.Consolidate the property management as of business. Property as
sector system, establish clear labor per 4. Considerable management per
divisions and promote collaboration the pressure to curtail system. the
among diverse professional firms, plan losses and achieve 3.Formulate plan
enhance professional skills, bolster . profitability. strategies to .
marketization and core competitiveness. enhance quality and
5.Formulate strategies to enhance the efficiency, curtail
64
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
quality and efficiency of each company, expenses, boost
and gradually implement measures to quality, and
reduce losses and transform losses into progressively
profits. overturn the loss-
making trend.
4. Augment revenue
and decrease
management costs
through internal
business
coordination.
1. Guarantee the stability of the existing
1.Formulate a plan
business while gradually implementing
to reform the
Shenzhen Property's standardized
employment
business system.
1.Inadequate pool mechanism that is
2.Ensure the stability of the workforce The The
of officials in market-driven.
by integrating human resource wor wor
reserve. 2.Systematically
management into the Shenzhen Property k is k is
2. Disparities integrate human
system. bein bein
exist in the salary resources
Shenzhen 3. Drive the integration of the OA office g g
and benefits management into None
Foreign Trade and financial management systems. prog prog
framework. the Shenzhen at the
Property 4. Consolidate the property management ress ress
3. Subpar Property mome
Management sector system, establish clear labor ed ed
standard of management nt
Co., Ltd. divisions and promote collaboration as as
business. system.
among diverse professional firms, per per
4. Considerable 3.Develop strategies
enhance professional skills, bolster the the
pressure to curtail to enhance quality
marketization and core competitiveness. plan plan
losses and achieve and efficiency,
5.Formulate strategies to enhance the . .
profitability. reduce costs,
quality and efficiency of each company,
improve quality, and
and gradually implement measures to
gradually turn the
reduce losses and transform losses into
tide on losses.
profits.
XIV Self-Evaluation Report or Independent Auditor’s Report on Internal Control
1. Internal Control Self-Evaluation Report
Disclosure date of the internal control
25 March 2023
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 99.64%
revenue
Identification standards for internal control weaknesses
Weaknesses in internal control over Weaknesses in internal control not
Type
financial reporting related to financial reporting
Indications of the serious defect of the Major defects include: 1. Serious
financial report were including: 1. the violation of national laws and
control environment is invalid; regulations leading to major litigation,
Nature standard 2. Commitment of major fraud by or investigation of regulatory agencies,
directors, supervisors or senior ordered suspension of business for
management of the Company; rectification, investigation for criminal
3. the audit institution discovered the responsibility or replacement of senior
65
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
current financial report had great defect managers;
while the internal control of the Company 2. Abnormal major changes of
didn’t found out during the operating directors, supervisors, senior
process; management and main technical
4. Correction of major misstatement in personnel of the Company;
financial reports reported or disclosed by 3. Major decision-making errors due to
the Company; lack of internal democratic decision-
5. the supervision of the Company’s Audit making procedures or unscientific
and Risk Management Committee and the procedures;
internal audit department on the internal 4. Serious loss of core management or
control was invalid. technical personnel;
Indications of the important defect of the 5. Vicious negative news frequently
financial report were including: 1. didn’t appeared in the media, involving a
abide by the universally acknowledged wide range and negative existing
accounting standard to choose and apply influence;
the accounting policies; 2. had not built up 6. Significant impact on the
the anti-fraud process and the control Company’s production and operation
measures; 3. had not built up the due to lack of system control or system
corresponding control mechanism or had failure of important business;
not executed the corresponding
compensating control for the accounting 7. Major defects of internal control
treatment which was unconventional or evaluation to be rectified;
with special transaction; 4. the control 8. Any other negative circumstances
during the process of the financial report at generating significant impact on the
the period-end existed one or multiple Company.
defects that could not guarantee the Significant defects include: 1.
compile of the financial report reach the Incomplete democratic decision-
goal of being real and complete; making process that affects production
5. Important or general defects of internal and operation of the Company;
control to be rectified. 2. Violation of internal rules and
Common defect: refers to the other control regulations leading to important losses;
defect except for the above great defect 3. Exposure of negative news by the
and significant defect. media leading to significant impact on
the Company;
4. Important defects of important
business regulations or system to be
rectified;
5. Any other negative case leading to
great impact on the Company.
Common defects: any other control
defect except for the above major and
significant defects.
Serious defect: potential misstatement of Major defects: direct property loss ≥
the operating income≥1% of the operating 1.00% of net assets of the previous
income of the consolidated statements of year;
the Company, potential misstatement of Significant defects: 0.5% of net assets
the total assets amount≥0.40% of the total of the previous year ≤ direct property
assets of the consolidated statements of the loss < 1.00% of net assets of the
Company, potential misstatement of the previous year;
net assets≥1.00% of the net assets of the Common defects: direct property loss
consolidated statements of the Company. < 0.5% of net assets of the previous
Important defect: 0.50% of the operating year.
income of the consolidated statements of
Quantitative standard the Company≤misstatement<1% of the
operating income of the consolidated
statements of the Company; 0.2% of the
total assets of the consolidated statements
of the Company ≤misstatement<0.4% of
the total assets of the consolidated
statements of the Company, 0.5% of the
net assets of the consolidated statements of
the Company ≤misstatement<1% of the
net assets of the consolidated statements of
the Company. Common defect:
misstatement of the operating
66
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
income<0.5% of the operating income of
the consolidated statements of the
Company, misstatement of the total assets
amount<0.2% of the total assets amount of
the consolidated statements of the
Company, misstatement of the net
assets<0.5% of the net assets of the
consolidated statements of the Company.
Number of material weaknesses in
0
internal control over financial reporting
Number of material weaknesses in
internal control not related to financial 0
reporting
Number of serious weaknesses in
0
internal control over financial reporting
Number of serious weaknesses in
internal control not related to financial 0
reporting
2. Independent Auditor’s Report on Internal Control
Applicable □ Not applicable
Opinion paragraph in the independent auditor’s report on internal control
We believe that Shenzhen Properties & Resources Development (Group) Ltd. maintained efficient internal control of financial
reports in all significant aspects according to “Basic Standards of Corporate Internal Control” and relevant regulations.
Independent auditor’s report on
Disclosed
internal control disclosed or not
Disclosure date 25 March 2023
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.
67
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Part V Environmental and Social Responsibility
I Major Environmental Issues
Indicate by tick mark whether the Company or any of its subsidiaries is a heavily polluting business identified by the environmental
protection authorities of China.
□ Yes No
Administrative penalties imposed for environmental issues during the Reporting Period
Name of the Impact on the
Remediation
company or production and
Penalty reason Violation situation Penalty result measures of the
subsidiary operation of the
Company
company listed companies
N/A N/A N/A N/A N/A N/A
Other environmental information disclosed with reference to key emission units
The Company attaches great importance to environmental protection and strictly implements relevant laws and regulations. During
the Reporting Period, no major environmental violations occurred and no administrative penalties were imposed on environmental
protection.
Actions taken to reduce carbon dioxide emissions during the Reporting Period and the impact:
□ Applicable Not applicable
Reasons for not disclosing other environmental information
Neither the Company nor any of its subsidiaries is a heavily polluting business identified by the environmental protection authorities
of China.
II Social Responsibility
Since its inception, SZPRD has been adhering to the concept of honesty, responsibility and win-win cooperation for the benefit of
society. The Company actively fulfills its social responsibilities and always takes repaying the society as an important development
concept. It actively fulfills its statutory social responsibilities and ethical social obligations, and unifies the realization of economic
and social benefits to create an excellent corporate image. The Company carried out the following activities to perform its social
responsibility in 2022:
(I) Visit seriously ill employees in difficulty
On 20 January, the Party Committee of SZPRD organized a symposium to extend regards to the employees in difficulty before the
Spring Festival. Liu Shengxiang, Secretary of the Party Committee of the Group and Chairman of the Group, and Wei Xiaodong,
Deputy Secretary of the Party Committee of the Group delivered sympathy funds and items amounting to approximately
RMB110,000 to representatives of Party members and employees in difficulty, making them feel the care and warmth of the
Group as an extended family.
During the symposium, Group leaders communicated with Party members and representatives of employees in difficulty and
learned about their work and life in detail. Liu Shengxiang, Secretary of the Party Committee of the Group and Chairman of the
Group, introduced the Group's strategic planning under the 14th Five-Year Plan, fruitful achievements made by the Group in 2021
and the Group's deployment of key work for 2022, while fully affirming and sincerely thanking all the Party members and
employees in difficulty for their earnest performance of duties in spite of numerous difficulties. Mr. Liu stressed that the
development of the Group is inseparable from the strong leadership of Shenzhen SASAC and SIHC, and the tireless efforts and
selfless contribution of leading cadres at all levels and grassroots employees of the Group. In the process of development, the
68
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Group will never let any employee fall behind. Finally, he expressed the hope that the Group's Party members and employees in
difficulty would face life bravely with a positive attitude and the determination to overcome difficulties, and get out of difficulties
to live a happy and healthy life as soon as possible.
After the symposium, Group leaders delivered sympathy funds and items as well as sincere New Year wishes to the
representatives of arty members and employees in difficulty, hoping that they could have a safe and peaceful Spring Festival.
(II) SZPRD reduced and exempted rental totaling over RMB50 million for enterprises in difficulty
In order to firmly implement the work requirements of Shenzhen SASAC and SIHC, SZPRD actively fulfills its social
responsibilities and implements various measures for rental reduction and exemption by state-owned enterprises (hereinafter
referred to as "SOE rental reduction and exemption measures"). The Group had completed rental reduction and exemption totaling
RMB50.36 million for existing tenants, benefiting 504 small and micro enterprises, 197 household industrial and commercial
entities and four private kindergartens, among others, with a view to effectively alleviating the downward economic impact on
small and micro enterprises, and making every effort to help market entities tide over difficulties.
1. The Group practically assumes the responsibility for rental reduction based on scientific coordination and rapid response.
In order to accelerate the implementation of rental reduction and exemption policies, the Group effectively fulfills its entity
responsibility, and establishes a SOE rental reduction and exemption working group in the first time to coordinate and organize the
implementation of rental reduction and exemption for the Group and its affiliated enterprises. The Group organizes the formulation
of the Work Plan of SZPRD for Implementing SOE Rental Reduction and Exemption and relevant work guidelines to refine the
working mechanism, review and approval authority and review process, and to clarify houses to be included in the rental reduction
and exemption measures, the period of reduction and exemption as well as applicable objects and identification methods.
Moreover, it also releases rental reduction and exemption announcements through WeChat groups and bulletin boards to disclose
such information as acceptance method, contact person and contact number, so that all tenants can be aware of relevant rental
reduction and exemption policies, through which the Group overcomes the current difficulties together with small and micro
enterprises and other market entities, and well demonstrates its assumption of responsibility as a state-owned enterprise.
2. The Group weaves a compact "guarantee network" for rental reduction based on extensive publicity and Group-wide vertical
linkage.
After the official launch of rental reduction, all affiliated enterprises of the Group timely take the initiative to visit tenants, guide
tenants to submit materials, and simplify the declaration process, so as to effectively open up the "last kilometer" for the
implementation of rental reduction policy. The Group establishes an effective routine working mechanism to strengthen
communication and liaison among all parties, properly deal with the demands of all parties, and comprehensively address the
problems encountered in practical operation. The Group and all its affiliated enterprises disseminate rental reduction and
exemption policies across all levels and, for units and individuals really unable to enjoy such policies, relieve their negative
emotions through patient explanation, thanks to which they haven't experienced any complaint or petition event so far.
Based on the full investigation in the early stage, the Group, in view of the problems and special cases centrally reflected by its
affiliated enterprises during their implementation of relevant policies, organizes a number of special meetings on the promotion of
rental reduction and exemption to further clarify such issues as policy basis, implementation entity and application scope, so as to
ensure the precise and full implementation of rental reduction and exemption measures.
3. The Group standardizes operation, strengthens review, and does well in the review of rental reduction.
All the Group's affiliated enterprises strictly fulfill and improve the decision-making process for SOE housing rental reduction and
exemption matters. In line with the requirements of "one policy for one enterprise" and "one archive for one household", the
Group reviews the materials submitted by more than 700 tenant applicants batch by batch and item by item, including entity
qualification declaration document, business license, tax payment certificate, etc., based on which strictly and carefully screens the
objects of rental reduction, and verifies the business scope and actual rental situation of tenants, so as to ensure the compliance of
rental reduction objects with relevant laws and regulations. In view of the special matters occurred in the process of rental
reduction and exemption, the Group holds two rounds of symposia on the list of beneficiaries for deliberation. Based on the
69
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
deliberation results, the Group takes such indexes as rental period, rental standard and rental reduction period as the determination
basis for reduction and exemption amount, clearly requires middleman landlords subleasing state-owned houses to ensure the final
lessee benefit from rental reduction and exemption in line with the requirements of "achieving rental reduction and exemption to
the maximum possible extent" and, premised on the standardization of rental reduction and exemption procedures, enables flexible
reduction and exemption by means of direct return of rental or deduction from subsequent unpaid rental following the principle of
"implementing policies by category in an active and stable manner, and doing the utmost to satisfy commercial tenants", with a
view to further reducing resistance to rental reduction and exemption.
Next, the Group will continue to coordinate various rental reduction and exemption work, conduct rental reduction and exemption
for incremental tenants, expand the effects of the aforesaid work, help market entities overcome difficulties, and stimulate the
development vitality of small and micro enterprises.
(III) The guomao property's party committee embarks on "red flag, red action" national blood donation month 2022,
donating 150,000 ml
In a bid to heighten the commitment to serving the people, the Guomao Property Management Company Party Committee has
taken concrete measures to strengthen the company's party-building brand. With an eye towards practicality, comprehensiveness,
and meticulousness, they orchestrated a national voluntary blood donation month campaign in 2022 under the banner of "Red Flag,
Red Action."
Their efforts involved ten subsidiaries spread out across several cities, including Hangzhou, Shenzhen, Jinan, Yangzhou, Baoding,
and others. These enterprises organized on-site blood donation events and facilitated the personnel to donate blood at local blood
donation stations and centers. A total of 415 individuals stepped up and donated their blood, contributing a total volume of
approximately 150,000 milliliters.
III Efforts in Poverty Alleviation and Rural Revitalization
With a noble sense of duty, the group strove to uphold its corporate citizenship responsibilities by uplifting those in poverty
through the power of consumption. The labor union assumed a leading role in fulfilling social obligations, heeding the investment
holding companies' call to action in support of consumption. Under the guidance of the group's party committee, the union
meticulously crafted procurement plans, executed procurement tasks with great care, and furnished all necessary documentation in
a systematic manner. The union's unwavering commitment to the cause of poverty alleviation through consumption manifested in
an expenditure of around 1.6 million, placing them amongst the foremost enterprises in the system. With hearts full of devotion,
the union poured their resources into supporting the central targeted poverty alleviation work.
Indicator Performance in 2022 Data Statistics Scope
Investment in Rural Revitalization/Funds (RMB10,000) Approximately 162.9 Group-wide, including subsidiaries
Investment in Rural Revitalization/Cadres (number of
1 Group-wide, including subsidiaries
times)
70
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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
SIHC sighed
equity transfer
contract on
Other Performance 100% equity
Shenzhen
commitments commitment transfer of TK
Investment 23 September
made to and Property with Three years Fulfillment5
Holdings Co., 2019
minority compensation the Company,
Ltd.
shareholders arrangement and the contract
stipulated
relevant
commitments
71
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
on
performance.4
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
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
72
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Construction Development (Group) Company and devoted itself to developing practical and feasible plans as soon as possible to
solve the horizontal competition issue for SZPRD. It also actively promoted the restructuring of SPG. However, given the
objective circumstances, SIHC failed to fulfill the original commitment to avoid horizontal competition. SIHC re-issued the Letter
on Changing the Commitment to Avoiding Horizontal Competition on 31 August 2021 and such commitment change matter was
approved at the first extraordinary general meeting of 2021 held on 27 September 2021. For more details, see the Announcement
on the Application by the Company's Controlling Shareholder for Changing the Commitment to Avoiding Horizontal Competition
(Announcement No.: 2021-32) disclosed by the Company on www.cninfo.com.cn on 11 September 2021.
Note 3: To reduce and standardize related transactions with the Listed Company, as controlling shareholder of the Listed company
and during the listing period of the Listed Company at Shenzhen Exchange Stock, SIHC promises: 1. SIHC and its controlling or
actually controlled companies, enterprises, economic organizations (not including enterprises controlled by the Listed Company,
hereinafter referred to as the “subordinated companies”) will strictly exercise the rights of shareholders according to provisions of
laws, regulations, and other normative documents, and fulfill the obligations of shareholders, and keep the independence of the
Listed Company in assets, finance, employees, business and agency, etc. 2. SIHC promises not to use its position of controlling
shareholder to promote board of shareholders or board of directors to make resolutions which may damage the legal interest of the
Listed Company or other shareholders; 3. SIHC and its subordinated companies will try their best to avoid having related
transactions with the Listed Company. In case the transaction with the Listed Company is inevitable, SIHC and its subordinated
companies will have transaction with the Listed Company on the basis of equality and free will, according to fair, rational and
normal commercial transaction conditions, will not require or accept conditions which is more preferential than the Listed
Company gives to the third party in any fair market transactions, and strictly fulfill various related transactions with the Listed
Company with good will. 4. SIHC and its subordinated companies will strictly fulfill decision making procedures and relevant
information disclosure obligations of related transactions according to articles of association of the Listed Company and relevant
laws and regulations. 5. SIHC and its subordinated companies will make sure that they will not seek special interests beyond above
stipulations by having related transactions with the Listed Company, will not use related transactions to illegally transfer funds and
profits of the Listed Company and to maliciously damage the legal interests of the Listed Company and its shareholders. 6. As for
current related transaction with the Listed Company, within the scope permitted by laws and regulations, SIHC promises to
confirm rational related transaction solution within 12 months after the Company shares are transferred to SIHC, and complete to
implement the solution within 5 years after the Company shares are transferred to SIHC, to solve such related transactions
completely. The specific forms include: (1) After current related transaction contract expires, it will not be renewed. In case
contract renewal is necessary according to the operation needs of the Listed Company, it will fulfill relevant decision making
procedures strictly according to procedures of related transactions. (2) Under the precondition of possible realization, terminate
contract which is being fulfilled, and adopt marketized and open bid invitation, etc., inquire again on service items involved in
such related transactions to confirm appropriate service provider. In case related transaction is involved, it should fulfill relevant
decision making procedures according to related transaction procedures. (3) In case there is possibility of price re-negotiation in
the related transaction contract which is being fulfilled, conduct price negotiation again, make the contract amount after re-pricing
conform to market price and not higher than the amount of contract which is being fulfilled, and strictly fulfill relevant decision
making procedures according to related transaction procedures.(4) Other appropriate measures which can reduce and finally
eliminate current related transaction but not necessary. 7. In case of violating above commitments, SIHC shall undertake
corresponding legal liabilities, including but not limited to undertaking compensation liability for all the losses caused to the
Listed Company.
Note 4: SIHC sighed equity transfer contract on 100% equity transfer of TK Property with the Company, and the contract
stipulated: 1. SIHC promises that the cumulative net profits (net profit after deducting extraordinary items) of TK Property from
2019 to 2021 will not be less than 18% of the equity transfer payment amount of this transaction, i.e. three-year cumulative net
profits ≥ equity transfer payment * 18%. The above net profits are subject to the amount which is confirmed by audited financial
report of TK Property. 2. In case three-year cumulative profits of TK Property fails to reach above promised amount, SIHC shall
73
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
compensate the insufficient part to the Company in full amount by cash. In case three-year cumulative profits (net profit after
deducting extraordinary items) of TK Property is more than the promised amount, the Company will not refund. 3. In case SIHC
needs to fulfill performance compensation obligation, it shall complete the performance compensation obligation within 30 days
after receiving the compensation notice of the Company, and the specific delivery method will be agreed by both parties. In case
SIHC delays to pay the performance compensation, it shall pay liquidated damages of 3/10000 of unpaid amount for each day
delay. In case of failing to pay for more than 90 days, then Company has the right to cancel the contract. On 27 November 2019,
the Company completed the procedures for registration changes in industry and commerce regarding 100% equity transfer of TK
Property. According to the Equity Transfer Contract and the audit result on profit or loss of transitional period in the audit report,
the final price for this equity transfer was determined bilaterally as RMB1,027,382,513.56.
Note 5: The audit results of Baker Tilly International (Special General Partner) show that, by the end of 2021, the cumulative net
profit upon deduction of non-recurring gains and losses of ITC Technology Park Company during the three-year performance
commitment period of 2019 - 2021 was RMB212,788,300, and the portion exceeding 18% of transaction equity transfer payment
(RMB184,928,900) amounted to RMB27,859,400. The three-year cumulative net profit of the ITC Technology Park Company has
reached the promised amount. According to the Equity Transfer Contract, it is unnecessary for SIHC to compensate the Company
in cash, and the Company will not return the portion exceeding the promised amount (RMB27,859,400 in total) to SIHC. The
three-year cumulative net profit of the ITC Technology Park Company has reached the promised amount. According to the Equity
Transfer Contract, it is unnecessary for SIHC to compensate the Company in cash, and the Company will not return the portion
exceeding the promised amount (RMB27,859,400 in total) to SIHC. This commitment has already been fulfilled so far.
2. Where there had been an earnings forecast for an asset or project and the Reporting Period was still
within the forecast period, explain why the forecast has been reached for the Reporting Period.
□ Applicable Not applicable
II Occupation of the Company’s Capital by the Controlling Shareholder or Its Related
Parties for Non-Operating Purposes
□ Applicable Not applicable
No such cases in the Reporting Period.
III Irregularities in the Provision of Guarantees
□ Applicable Not applicable
No such cases in the Reporting Period.
IV Explanations Given by the Board of Directors Regarding the Latest “Modified Opinion”
Issued by the Independent Auditor
□ Applicable Not applicable
V Explanations Given by the Board of Directors, the Supervisory Board and the
Independent Directors (if any) Regarding the Independent Auditor's “Modified Opinion” on
the Financial Statements of the Reporting Period
□ Applicable Not applicable
74
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
VI YoY Changes to Accounting Policies and Estimates and Correction of Material
Accounting Errors
□ Applicable Not applicable
No such cases in the Reporting Period.
VII YoY Changes to the Scope of the Consolidated Financial Statements
Applicable □ Not applicable
For the detailed changes to the scope of the Company’s consolidated statements of the Reporting Period, see “Part X Financial
Statements”, VIII 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
3 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
Three years for Chen Zihan, one year 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
X Insolvency and Reorganization
□ Applicable Not applicable
No such cases in the Reporting Period.
XI Major Legal Matters
Applicable □ Not applicable
Involved Index
Execution Disclo
amount Decisions to
General information Provision Progress of sure
(RMB’0,0 and effects disclo
decisions date
00) sed
75
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
inform
ation
Following the initial
hearing, a
disagreement arose
between the two
parties involved in the
arbitration over the
Arbitration case of property
amount in question.
contract dispute between
As a result, they
the Fourth Owners'
requested a third-
Committee of Shenzhen
party audit institution
Nanshan District Software
to conduct an audit.
Park (Applicant) and
During the second
Shenzhen ITC Technology
1,319.63 Yes hearing, the Not yet Not yet
Park Service Co., Ltd. for
arbitration panel
Software Park Phase I. The
inquired about the
Applicant requested an
details of the case and
award to the Respondent to
the audit report issued
return the owners' public
by the third-party
revenue and bear the
institution. Our side
attorney's fees.
provided our
perspective in
response, and we are
presently awaiting the
decision of the
arbitration panel.
The first instance
judgment reads that
the plaintiff Shenzhen
Qitian Sunshine Hotel
Management Co., Ltd.
shall pay rent of
RMB1,050,913.6 to
Shenzhen Qitian Sunshine the defendant
ShenZhen Properties
Hotel Management Co., & Resources
Ltd. (plaintiff) sued Development (Group)
ShenZhen Properties & Ltd. within ten days
Resources Development from the effective
(Group) Ltd. (defendant) for date of this judgment.
property leasing contract All the claims of the
plaintiff Shenzhen
dispute, requesting the 1,144 Not Not yet Not yet
Qitian Sunshine Hotel
defendant to pay Management Co., Ltd.
compensation for interior were rejected, and the
decoration of the relocated remaining
house and relocation fee of counterclaims of the
the leased house and to defendant Shenzhen
Property
return the subsidy fee of the
Development (Group)
leased house, etc. Co., Ltd. were
rejected. Shenzhen
Qitian Sunshine Hotel
Management Co., Ltd.
has instituted an
appeal. The case is
currently in the
second trial stage.
See Part See Part X See Part X
Summary of other contract See Part X Financial
9,870.76 X Financial Financial
disputes Report-XIV-2
Financial Report-XIV- Report-
76
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Report- 2 XIV-2
XIV-2
XII Punishments and Rectifications
□ Applicable Not applicable
No such cases in the Reporting Period.
XIII Credit Quality of the Company as well as Its Controlling Shareholder and Actual
Controller
□ Applicable Not applicable
XIV Major Related-Party Transactions
1. Continuing Related-Party Transactions
Applicable □ Not applicable
As % of
total Approve Over Obtainabl Index
Relation
Specif Pricin Total value of d the Metho e market to
ship Type of Transa Disclo
Related ic g value all transacti appro d of price for disclo
with the transacti ction sure
party transa princi (RMB’0 same- on line ved settle same-type sed
Compan on price date
ction ple ,000) type (RMB’0 line or ment transactio inform
y
transacti ,000) not ns ation
ons
Annou
nceme
nt on
Signin
g
Proper
ty
Mana
gemen
Related- t
party Contra
Shenzhe Wholly-
transacti ct
n Bay owned ons Proper Proper Proper
with
Area sub- governi ty ty ty 31
Relate
Internati subsidia ng sales manag manag manag Dece
7,510.1 4.51% 8,164.58 No Cash 7,510.10 d
onal ry of the of ement ement ement mber
commod servic Party
Hotel Compan servic servic 2022
ity and es by a
Co., y as the es es
providin Wholl
Ltd. parent g of y-
labors owned
Subsid
iary
and
Relate
d-
party
Transa
ction
(No.:
77
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
2022-
54)
disclo
sed on
Cninf
o
Annou
nceme
nt on
Estim
ated
Related- Contin
party uing
Shenzhe transacti Relate
Wholly- Proper Proper
n Bay ons Proper d-
owned ty ty
Technol governi ty 30 party
subsidia
ogy ng sales manag manag manag
ry of the 5,456.24 3.27% 4,100 Yes Cash 5,456.24 March Transa
Develop of ement ement ement
Compan 2022 ctions
ment commod servic servic servic
y as the in
Co., ity and es
parent es es
Ltd. providin 2022
g of (No.:
labors 2022-
12)
disclo
sed on
Cninf
o
Related- Proper
party
Hebei ty
transacti
Shenbao Sub- ons manag Proper Proper
Investm subsidia governi ement ty ty
30
ent ry of the ng sales servic manag manag
3,145.98 1.89% 658.68 Yes Cash 3,145.98 March
Develop Compan of es and ement ement
commod 2022
ment y as the engine servic servic
ity and
Co., parent ering es es
providin
Ltd. g of servic
labors es
Related-
party
transacti
Shenzhe
Wholly- ons
n Bay
owned governi Mana
Technol Marke 30
subsidia ng gemen Agree
ogy t
ry of the purchas t ment 8,651.83 6.00% 8,100 Yes Cash 8,651.83 March
Develop princi
Compan e of servic price 2022
ment ple
y as the commod es
Co.,
parent ity and
Ltd.
providin
g of
labors
Shenzhe
Wholly- Truste
n
owned e
Shentou Marke 30
subsidia manag Agree
Real Trustees t
ry of the ement ment 4,405.74 34.41% 7,883.01 No Cash 4,405.74 March
Estate hip princi
Compan servic price 2022
Develop ple
y as the es of
ment
parent houses
Co.,Ltd.
29,169.8 28,906.2
Total -- -- -- -- -- -- -- --
9 7
78
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Large-amount sales return in detail N/A
The total amount of daily related-party transactions of the Company in 2022 is expected to be
RMB262,399,800, and the actual total amount is RMB330,527,800. The mainly reason for the difference
is that: during the Reporting Period, the Company completed the acquisition of five enterprises which
Give the actual situation in the Reporting caused the changes in the scope of consolidated financial statements of the Company. The five
Period (if any) where an estimate had
enterprises are Shenzhen Property Management Co., Ltd., Shenzhen Foreign Trade Property
been made for the total value of
continuing related-party transactions by Management Co., Ltd., Shenzhen Shenfubao Property Development Co., Ltd., Shenzhen Shenfubao
type to occur in the Reporting Period Hydropower Municipal Service Co., Ltd. and Shenzhen Free Trade Zone Security Service Co., Ltd. The
total amount of daily related-party transactions conducted by above five enterprises and SIHC as well as
its subordinate companies is RMB82,011,900. For details, please refer to the Announcement on
Estimated Continuing Related-party Transactions in 2023 disclosed on the same day of 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 40,150.00 20,000.00 20,150.00
Holdings Real before
Co., Ltd. Estate’s acquisitio
minority n
sharehold
er Xinhai
Rongyao
Shenzhen Minority Business
Xinhai sharehold circulatin
Rongyao er of the g funds
No 33,047.29 33,047.29
Real subsidiary before
Estate Rongyao acquisitio
Develop Real n
79
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
ment Co., Estate
Ltd.
Influence
on the
Company
’s
All were within the risks control of the Company and not influenced the operating results and the financial
operating
conditions.
results
and
financial
condition
Liabilities payable to related parties
Amount Amount
Beginning newly added returned in Current
Relation Ending
Formation balance in current current Interes interest
Related party with the balance
reason (RMB’0,0 period period t rate (RMB’0,0
Company (RMB’0,00
00) (RMB’0,00 (RMB’0,00 00)
0)
0) 0)
Shenzhen Jifa
Joint vent Intercours
Warehouse Co., 3,879.67 350.00 4,229.67
ure e funds
Ltd.
Shenzhen Tian’an
International
Joint vent Intercours
Building Property 521.43 521.43
ure e funds
Management Co.,
Ltd.
Influence on the
Company’s
All were within the risks control of the Company and not influenced the operating results and the financial
operating results
conditions.
and financial
condition
5. Transactions with Related Finance Companies
□ Applicable Not applicable
The Company did not make deposits in, receive loans or credit from and was not involved in any other finance business with any
related finance company or any other related parties.
6. Transactions with Related Parties by Finance Companies Controlled by the Company
□ Applicable Not applicable
The finance company controlled by the Company did not make deposits, receive loans or credit from and was not involved in any
other finance business with any related parties.
7. Other Major Related-Party Transactions
Applicable □ Not applicable
At the 14th Meeting of the 10th Board of Directors held on 23 December 2022, the Company reviewed and approved the Proposal
on the Signing of the Agreement and Related-party Transactions between a Wholly-owned Subsidiary and a Related Party.
Shenzhen SZPRD Yanzihu Development Co., Ltd. (hereinafter referred to “Yanzihu Company”), a wholly-owned subsidiary of the
Company, intends to enter into an agreement with Shenzhen Tianjun Industrial Co., Ltd. (hereinafter referred to as “Tianjun
Company”, a subordinate company of the controlling shareholder SIHC’s wholly-owned subsidiary China Shenzhen Foreign Trade
(Group) Corp. Ltd. on a voluntary, equal and consensual basis. To successfully promote the urban renewal project of Tianjun
Industrial Park in Pingshan District, Shenzhen (hereinafter referred to as “Project”), Tianjun Company plans to leave the lands and
properties of Tianjun Industrial Park held by it (hereinafter referred to as “Subject Assets”) to the management of Yanzihu
Company in advance. And Yanzihu Company agreed to pay RMB27 million to Tianjun Company as one part of the overall
relocation compensation and resettlement fee of the Project. No transfer of ownership of any assets will occur in this transaction
and Yanzihu will take over the park to facilitate the development of the Project.
80
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Index to announcements on major related-party transactions
Announcement Disclosure time Disclosure website
Announcement on the Signing of the
Agreement and Related-party
24 December 2022 http://www.cninfo.com.cn
Transactions between a Wholly-owned
Subsidiary and a Related Party
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 27 27
18
n Security Novemb
October 500,000 Novemb 299,940 No Yes
Rongyao deposit er 2019
2019 er 2019
Real to 20
81
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Estate Novemb
Develop er 2024
ment
Co., Ltd.
Total approved line Total actual balance
for such guarantees of such guarantees at
at the end of the 500,000 the end of the 299,940
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 actual
Total approved
guarantee balance at
guarantee line at the
500,000 the end of the 299,940
end of the Reporting
Reporting Period
Period (A3+B3+C3)
(A4+B4+C4)
Total actual guarantee amount (A4+B4+C4)
67.97%
as % of the Company’s net assets
Of which:
Balance of debt guarantees provided directly
or indirectly for obligors with an over 70% 299,940
debt/asset ratio (E)
Total of the three amounts above (D+E+F) 299,940
Compound guarantees:
3. Cash Entrusted to Other Entities for Management
(1) Cash Entrusted for Wealth Management
□ Applicable Not applicable
No such cases in the Reporting Period.
(2) Entrusted Loans
□ Applicable Not applicable
No such cases in the Reporting Period.
4. Other Major Contracts
□ Applicable Not applicable
No such cases in the Reporting Period.
XVI Other Significant Events
Applicable □ Not applicable
82
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
(I) Matters on winning of the bid for land use right
On 18 February 2022, the Company and Yangzhou Lvfa Real Estate Co., Ltd., by joint bidding, won the state-owned land use
right of No. GZ342 land plot in Pingshan Township, Yangzhou at a price of RMB835,352,910 in the online listing auction of
state-owned construction land use right in Yangzhou. For details, see the Announcement on Winning of the Bid for Land Use
Right (Announcement No.: 2022-02) disclosed by the Company on Cninfo (www.cninfo.com.cn) on 19 February 2022.
(II) Matters on appointment of senior managers of the Company
The Company held the Sixth Meeting of the 10th Board of Directors on 21 February 2022, where the Proposal on Appointment of
General Manager of the Company, the Proposal on Appointment of Deputy General Manager and Officer in Charge of Finance of
the Company and the Proposal on Appointment of Chief Financial Officer of the Company were reviewed and approved, and the
Board of Directors agreed to appoint Mr. Wang Hangjun as general manager of the Company, Mr. Chen Hongji, Ms. Cai Lili, Mr.
Li Peng and Mr. Zhang Gejian as deputy general managers of the Company, with Ms. Cai Lili concurrently serving as officer in
charge of finance of the Company, and Ms. Shen Xueying as chief financial officer of the Company. The term of office of the
senior managers above starts from the date of review and approval at the Sixth Meeting of the 10th Board of Directors and expires
on the date of expiration of the term of office of the 10th Board of Directors. For details, see the Announcement on Appointment
of Senior Managers of the Company (Announcement No.: 2022-04) disclosed by the Company on Cninfo (www.cninfo.com.cn)
on 22 February 2022.
(III) Matters on changes of directors and supervisors of the Company
During the Reporting Period, Mr. Wei Xiaodong, a director of the Company, applied for resignation from the position of non-
independent director and staff representative director of the 10th Board of Directors for reason of job transfer; Mr. Dai Xianhua, a
supervisor of the Company, applied for resignation from the position of supervisor and chairman of the Board of Supervisors for
reaching the statutory retirement age. The Company held the Congress of Workers and Staff on 29 June 2022, where Mr. Zhang
Zhimin was elected as staff representative director of the 10th Board of Directors of the Company, whose term of office shall
expire upon expiration of the term of office of the 10th Board of Directors. The Company held the Seventh Meeting and Eighth
Meeting of the Tenth Board of Supervisors respectively on 4 July 2022 and 20 July 2022, and held the General Meeting of
Shareholders on 20 July 2022, where Mr. Ma Hongtao was elected as supervisor and chairman of the Board of Supervisors, whose
term of office shall expire upon expiration of the term of office of the 10th Board of Supervisors. For details, see the
Announcement on Resignation of Directors and Election of Staff Representative Director (Announcement No.: 2022-20),
Announcement on Proposed Change of Supervisors of the Company (Announcement No.: 2022-29) and Announcement on
Election of Chairman of the Board of Supervisors (Announcement No.: 2022-33) disclosed by the Company on Cninfo
(www.cninfo.com.cn) respectively on 30 June 2022, 5 July 2022 and 21 July 2022.
(IV) Matters on progress of acquisition by the wholly-owned subsidiary of 100% equity in Shenzhen Property
Management Co., Ltd., three enterprises owned by Shenzhen Shenfubao (Group) Co., Ltd. and Shenzhen Foreign Trade
Property Management Co., Ltd., and progress of relevant connected transactions
During the Reporting Period, all relevant procedures for industrial and commercial change registration were handled and the
Notice of Change (for Recordation) approved by Shenzhen Market Supervision Administration was obtained for acquisition by
Shenzhen International Trade Center Property Management Co., Ltd. (a wholly-owned subsidiary of the Company) of 100%
equity in Shenzhen Property Management Co., Ltd., Shenzhen Shenfubao Property Development Co., Ltd., Shenzhen Shenfubao
Hydropower Municipal Service Co., Ltd., Shenzhen Free Trade Zone Security Service Co., Ltd. and Shenzhen Foreign Trade
Property Management Co., Ltd. The equity transfer fund was paid upon the special audit by Baker Tilly China Certified Public
Accountants (LLP). Since then, the acquisition of 100% equity in Shenzhen Property Management Co., Ltd., three enterprises
owned by Shenzhen Shenfubao (Group) Co., Ltd. and Shenzhen Foreign Trade Property Management Co., Ltd. as well as related-
party transactions have been officially completed. For details, see the Announcement on Progress of Acquisition by the Wholly-
owned Subsidiary of 100% Equity in Shenzhen Property Management Co., Ltd. and Progress of Relevant Connected Transactions
(Announcement No.: 2022-01), Announcement on Progress of Acquisition by the Wholly-owned Subsidiary of 100% Equity in
83
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Three Enterprises Owned by Shenzhen Shenfubao (Group) Co., Ltd. and Progress of Relevant Connected Transactions
(Announcement No.: 2022-05), Announcement on Progress of Acquisition by the Wholly-owned Subsidiary of 100% Equity in
Shenzhen Foreign Trade Property Management Co., Ltd. and Progress of Relevant Connected Transactions (Announcement No.:
2022-06), Announcement on Completion of Acquisition by the Wholly-owned Subsidiary of 100% Equity in Three Enterprises
Owned by Shenzhen Shenfubao (Group) Co., Ltd. and Progress of Relevant Connected Transactions (Announcement No.: 2022-
39) and Announcement on Completion of Acquisition by the Wholly-owned Subsidiary of 100% Equity in Shenzhen Foreign
Trade Property Management Co., Ltd. and Progress of Relevant Connected Transactions (Announcement No.: 2022-40) disclosed
by the Company on Cninfo (www.cninfo.com.cn) respectively on 15 February 2022, 25 February 2022 and 26 September 2022.
(V) Matters on the holding subsidiary winning the bid of the land use right
In the Reporting Period, the Company's subsidiary, Yangzhou Wuhe Real Estate Co., Ltd, successfully secured state-owned land
use rights for Plot GZ399 in Pingshan Township, Yangzhou City. The acquisition was made through an online public bidding on
the state-owned construction land use rights platform of Yangzhou City, with a transaction price of RMB179,175,420. This
strategic purchase will effectively bolster the company's land reserve and provide valuable resources to further advance its
industrial and urban development strategies in a sustainable manner. Additional information on this transaction can be found in the
"Announcement on the Subsidiary's Winning of Land Use Rights" (Announcement No. 2022-47), which was published by the
company on 17 November 2022, on the CNINFO website.
XVII Significant Events of Subsidiaries
□ Applicable Not applicable
84
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Part VII Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
Before Increase/decrease (+/-) After
Shares
Shares
as
as
divide
dividend Percen
Percenta New nd Subtot
Shares converte Other Shares tage
ge (%) issues conver al
d from (%)
ted
capital
from
reserves
profit
1. Restricted shares 1,898,306 0.32% 0 0 0 0 0 1,898,306 0.32%
1.1 Shares held by the
0 0.00% 0 0 0 0 0 0 0.00%
state
1.2 Shares held by state-
3,326 0.00% 0 0 0 0 0 3,326 0.00%
own Legal-person
1.3 Shares held by other
1,894,980 0.32% 0 0 0 0 0 1,894,980 0.32%
domestic investors
Among which: shares
held by domestic legal 1,894,980 0.32% 0 0 0 0 0 1,894,980 0.32%
person
Shares held by domestic
0 0.00% 0 0 0 0 0 0 0.00%
natural person
1.4 Oversea
0 0.00% 0 0 0 0 0 0 0.00%
shareholdings
Among which: shares
held by oversea legal 0 0.00% 0 0 0 0 0 0 0.00%
person
Shares held by oversea
0 0.00% 0 0 0 0 0 0 0.00%
natural person
99.68
2. Unrestricted shares 594,080,786 99.68% 0 0 0 0 0 594,080,786
%
2.1 RMB ordinary 88.34
526,475,543 88.34% 0 0 0 0 0 526,475,543
shares %
2.2 Domestically listed 11.34
67,605,243 11.34% 0 0 0 0 0 67,605,243
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%
100.00 100.0
3. Total shares 595,979,092 0 0 0 0 0 595,979,092
% 0%
Reasons for share changes:
□ Applicable Not applicable
Approval of share changes:
□ Applicable Not applicable
Transfer of share ownership:
85
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
□ Applicable Not applicable
Effects of share changes on the basic and diluted earnings per share, equity per share attributable to the Company’s ordinary
shareholders and other financial indicators of the prior year and the prior accounting period, respectively:
□ Applicable Not applicable
Other information that the Company considers necessary or is required by the securities regulator to be disclosed:
□ Applicable Not applicable
2. Changes in Restricted Shares
□ Applicable Not applicable
II. Issuance and Listing of Securities
1. Securities (Exclusive of Preferred Shares) Issued in the Reporting Period
□ Applicable Not applicable
2. Changes to Total Shares, Shareholder Structure and Asset and Liability Structures
□ Applicable Not applicable
3. Existing Staff-Held Shares
□ Applicable Not applicable
III Shareholders and Actual Controller
1. Shareholders and Their Shareholdings at the Period-End
Unit: share
Number
of
ordinary
sharehol
ders at Number of Number of preferred
the preferred shareholders with
Number of
month- shareholders resumed voting rights at
ordinary 48,233 45,859 0 0
end with resumed the month-end prior to
shareholders
prior to voting rights the disclosure of this
the (if any) Report (if any)
disclosu
re of
this
Report
5% or greater shareholders or top 10 shareholders
Shareho Increase/decr Shares, marked in
Nature of Total shares
Name of lding ease in the Restricted Unrestricted pledge or frozen
shareholde held at the
shareholder percenta Reporting shares held shares held
r period-end Status Shares
ge Period
86
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
State-
Shenzhen
owned
Investment 50.57% 301,414,637 0 3,326 301,411,311
legal
Holdings Co., Ltd.
person
Domestic
Shenzhen State-
non-state-
owned Equity
owned 6.38% 38,037,890 0 0 38,037,890
Management Co.,
legal
Ltd.
person
China Orient State-
Asset owned
2.77% 16,491,402 -6,744,998 0 16,491,402
Management Co., legal
Ltd. person
Domestic
Duan Shaoteng natural 0.29% 1,755,565 0 0 1,755,565
person
Domestic
Shenzhen Duty-
non-state-
Free Commodity
owned 0.29% 1,730,300 0 1,730,300 0
Enterprises Co.,
legal
Ltd.
person
Domestic
Yang Yaochu natural 0.27% 1,640,984 140,600 0 1,640,984
person
State-
CITIC Securities owned
0.25% 1,545,368 1,545,368 0 1,545,368
Company Limited legal
person
Domestic
Li Xinyi natural 0.25% 1,500,000 -2,050,100 0 1,500,000
person
Shenzhen
Hengbang
Zhaofeng Private
Equity Fund
Management Co.,
Other 0.22% 1,303,100 1,303,100 0 1,303,100
Ltd.-Hengbang
Xiangshang Win-
Win Growth No.1
Private Equity
Investment Fund
Domestic
Mai Furong natural 0.20% 1,244,596 141,500 0 1,244,596
person
Strategic investor or general
legal person becoming a top-10
N/A
ordinary shareholder due to
rights issue (if any)
The largest shareholder, Shenzhen Investment Holdings Co., Ltd., is the controlling
Related or acting-in-concert
shareholder of the Company and Shenzhen State-owned Equity Management Co., Ltd. And the
parties among the shareholders
Company does not know whether there are related parties or acting-in-concert parties among
above
the other shareholders.
Explain if any of the
shareholders above was
involved in entrusting/being N/A
entrusted with voting rights or
waiving voting rights
Special account for share
repurchases (if any) among the N/A
top 10 shareholders
Top 10 unrestricted shareholders
Unrestricted shares held at the period- Shares by type
Name of shareholder
end Type Shares
87
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Shenzhen Investment Holdings Co., RMB common share
301,411,311 301,411,311
Ltd.
Shenzhen State-owned Equity RMB common share
38,037,890 38,037,890
Management Co., Ltd.
China Orient Asset Management Co., RMB common share
16,491,402 16,491,402
Ltd.
Duan Shaoteng 1,755,565 RMB common share 1,755,565
Domestically listed
Yang Yaochu 1,640,984 1,640,984
foreign share
CITIC Securities Company Limited 1,545,368 RMB common share 1,545,368
Li Xinyi 1,500,000 RMB common share 1,500,000
Shenzhen Hengbang Zhaofeng
Private Equity Fund Management
Co., Ltd.-Hengbang Xiangshang Win- 1,303,100 RMB common share 1,303,100
Win Growth No.1 Private Equity
Investment Fund
Domestically listed
Mai Furong 1,244,596 1,244,596
foreign share
You Jianping 1,214,700 RMB common share 1,214,700
Related or acting-in-concert parties
The largest shareholder, Shenzhen Investment Holdings Co., Ltd., is the controlling
among top 10 unrestricted public
shareholder of the Company and Shenzhen State-owned Equity Management Co., Ltd.
shareholders, as well as between top
And the Company does not know whether there are related parties or acting-in-concert
10 unrestricted public shareholders
parties among the other shareholders.
and top 10 shareholders
Top 10 ordinary shareholders
involved in securities margin trading N/A
(if any)
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the
Company conducted any promissory repo during the Reporting Period.
□ Yes No
No such cases in the Reporting Period.
2. Controlling Shareholder
Nature of the controlling shareholder: Controlled by a local state-owned legal person
Type of the controlling shareholder: legal person
Legal
represen
Name of controlling Date of Unified social credit
tative/pe Principal activity
shareholder establishment code
rson in
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
Shenzhen Investment He
13 October 2004 914403007675664218 land use right; to execute investments
Holdings Co., Ltd. Jianfeng
and services in strategic emerging
industry; to execute the investment,
operating and management of the
state-owned equities of the wholly-
owned, controlling and stock-
participating enterprises through the
methods such as the restructuring
88
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
integration, capital operation and
assets disposal; other business
developed with the authority from the
Municipal State-owned Assets
Supervision and Administration
Commission (if the activity needs
approval as required by state
regulations, it shall not be operated
until it is approved).
Shenzhen Textile A (000045) holds 234.07 million shares, accounting for 46.10%;
SPG A (000029) holds 642.88 million shares, accounting for 63.55%;
Shenzhen Universe A (000023) holds 9.59 million shares, accounting for 6.91%;
Ping’an (601318) holds 962.72 million shares, accounting for 5.27%;
Guosen Securities (002736) holds 3,223.11 million shares, accounting for 33.53%;
Guotai Jun’an (601211) holds 609.43 million A-shares and 103.37 million H-shares, totally
Shareholdings of the accounting for 8.00%;
controlling shareholder in Telling Telecommunication (000829) holds 195.03 million shares, accounting for 18.89%;
other listed companies at Shenzhen International (00152) holds 952.01 million shares, accounting for 43.39%;
home or abroad in this Beauty Star (002243) holds 604.82 million shares, accounting for 49.96%;
Reporting Period Bay Area Development (00737) holds 2213.45 million shares, accounting for 71.83%;
Infinova (002528) holds 315.83 million shares, accounting for 26.35%;
Eternal Asia (002183) holds 388.45 million shares, accounting for 18.30%;
Shenzhen Energy (000027) holds 6.77 million shares, accounting for 0.14%;
Bank of Communications (601328) holds 9.52 million shares, accounting for 0.01%;
Techand (300197) holds 113.98 million shares, accounting for 4.84%;
Vanke (02202) holds 77.27 million shares, accounting for 0.67%.
Change of the controlling shareholder in the Reporting Period:
□ Applicable Not applicable
The controlling shareholder remained the same in the Reporting Period.
3. Actual Controller and Its Acting-in-Concert Parties
Nature of the actual controller: local institution for state-owned assets management
Type of the actual controller: legal person
Legal
Name of actual representative/ Date of Unified social
Principal activity
controller person in establishment 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
Shenzhen Municipal
implementation activities.
State-owned Assets
(II) On the basis of authorization from
Supervision and Wang Yongjian 1 July 2004 K31728067
municipal government, fulfilling duties of
Administration
investors according to laws and
Commission
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
89
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
management mechanism for state-owned
assets with the unification of power,
obligation, and duties, as well as the
combination of managing assets, people,
and affairs
(V) Being responsible for hedging and
appreciation of the value of state-owned
assets of enterprises in its supervision,
establishing and perfecting the index
system for hedging and appreciation of
the value of state-owned assets, setting
out assessment standards, supervising on
hedging and appreciation of the value of
state-owned assets of enterprises in its
supervision by statistics, audit, and check,
and urging enterprises in its supervision
to fulfill social duties
(VI) In charge of researching and
preparing the general planning for
transformation and development of state-
owned enterprise in its supervision,
guiding and boosting transformation and
re-organization of state-owned
enterprises, prompting the construction of
modern enterprise system, carrying
forward operation of state-owned capital,
pushing the strategic adjustment on state-
owned economy layout and structure, and
making state-owned capital play the role
in significant industries and key fields
including national security, national
economy lifeline, etc.
(VII) Directing and propelling enterprises
in its supervision to perfect company
governance structure, intensifying
construction of Board and Supervision
Committees of enterprises in its
supervision, and forming the governance
mechanism with specific duties,
coordinating operation, and effective
counterbalance
(VIII) Assuming the management work of
income distribution for enterprises in its
supervision, and standardizing the income
distribution and position-related
consumption over people in charge of
enterprises in its supervision
(IX) In line with rules of municipal Party
committee, appointing and dismissing,
appraising, as well as, in accordance with
business performance, rewarding and
punishing people in charge of enterprises
in its supervision by applying legal
procedures, establishing the mechanism
of selecting and choosing candidates
meeting the requirements of socialist
market economy system and modern
enterprise system, and perfecting the
incentive and control system for operators
(X) Being responsible for appointing or
recommending board directors,
supervisors, CFOs to enterprises in its
supervision, and auditing on economic
duties of people in charge of enterprises
in its supervision according to rules about
management authorization to people in
charge of enterprises
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
(XI) In charge of preparing the draft of
budgets and final accounts of annual
state-owned capital of enterprises in its
supervision, including it to the
government budget system, organizing
the execution upon approvals, and
collecting earnings of state-owned capital
handed in by enterprises in its supervision
(XII) In charge of strategy research,
policy formulation, and guidance for
transformation, development, and asset
management related to collectively-
owned enterprises
(XIII) Assuming other assignments
assigned by municipal government and
superior departments
Shareholdings of the
actual controller in
Listed companies such as the Shenzhen Airport, YTP, Shenzhen Energy, Shenzhen Zhenye, Shenzhen
other listed companies
Tagen and SDGI.
at home or abroad in
this Reporting Period
Change of the actual controller 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
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Part VIII Preference Shares
□ Applicable Not applicable
No preference shares in the Reporting Period.
93
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Part IX Bonds
□ Applicable Not applicable
94
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Part X Financial Statements
I. Auditor’s Report
Type of the independent auditor’s opinion Unmodified unqualified opinion
Date of signing this report 24 March 2023
Name of the independent auditor Baker Tilly China Certified Public Accountants (LLP)
Reference number of Audit Report Baker Tilly YZ[2023]No. 13206
Name of the certified public accountants Chen Zihan, Zhong Qinfang
Text of the Auditor’s Report
All shareholders of Shenzhen Properties & Resources Development (Group) Ltd.:
1. Opinion
We have audited the financial statements of Shenzhen Properties & Resources Development (Group) Ltd. (the “Company”), which
comprise the consolidated and parent company balance sheets as of 31 December 2022, 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 2022, and the consolidated and parent company operating results and cash flows
for the year then ended, in conformity with the Chinese Accounting Standards (CAS).
2. Basis for Opinion
We conducted our audits in accordance with the Audit Standards for Chinese Registered Accountants. Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for Audit of Financial Statements section of our report. We are
independent of the Company in accordance with the China Code of Ethics for Certified Public Accountants, and we have fulfilled our
other ethical responsibilities in accordance with the said Code of Ethics. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
3. Key audit items
Key audit items are the items that are considered most important for the audit of the current financial statements based on our
professional judgment. The response to these items is based on the audit of the financial statements as a whole and the formation of
audit opinions. We do not comment on these items separately.
Key audit item Audit response
1. Recognition and measurement of revenue from real estate development and sales
SZPRD achieved a revenue of RMB1.914 billion from real Our audit procedures for this key audit issue include:
estate development projects in 2022, accounting for 51.60% of Understanding and sampling key control measures related to
the total operating revenue. SZPRD confirms revenue from real property sales business to evaluate the effectiveness of
estate development projects when all the following conditions implementation of control procedures.
are met: (1) Real estate products of sales contracts under Obtaining and reviewing completion acceptance documents of
development are completed and accepted; (2) Irreversible sales projects; reviewing property sales contracts and verifying the
contracts are signed and buyers’ payment certificates are authenticity of revenue from property sales recognized in this
received; (3) Notice of property acceptance is issued. year; checking original collection certificates or certificates of
95
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
The recognition and measurement of revenue from real estate bank mortgage procedures to determine whether full payment
business has a significant impact on the operating results of amount is received; reviewing admission notice or other
SZPRD, which may be inaccurately measured or recognized in supporting documents on delivery of properties to evaluate
improper accounting period. Therefore, we regard the whether revenue from property sales meets the conditions for
recognition and measurement of real estate development and revenue recognition as stipulated by the Company’s accounting
sales revenue as key audit issues. policy.
For accounting policies and details of revenue from real estate Obtaining and reviewing supporting documents for property
development and sales, please refer to Note III, (28), VI, (37) to delivery before and after the balance sheet date to evaluate
the financial statement. whether revenue from property sales is recorded in proper
accounting period.
2. Provision of increment tax on land value
The Company shall pay increment tax on land value at the rate Our audit procedures for this key audit issue include:
of 30-60% of extra progressive tax rate of increment amount on Obtaining calculation data of increment tax on land value of
land value for real estate sales and development. At the end of main real estate development projects to review and calculate
each financial reporting period, the Management shall estimate the accuracy of amount of increment tax on land value accrued
the provision amount of increment tax on land value. When by the Company in this year.
making estimation judgment, main factors to be included in Combining the audit revenue from real estate sales to review the
consideration shall include the provisions and explanations of rationality of estimated amount of revenue from real estate sales
relevant tax laws and regulations, the amount of estimated made by the Management in the calculation of increment tax on
revenue from sale of real estate minus estimated deductible land land value.
cost, real estate development cost, interest expense and Combining inventory audit to review the accuracy of land cost,
development cost, etc. The actual amount in final settlement real estate development cost, interest expense and development
payable by SZPRD for increment tax on land value may be cost deducted by the Management in the calculation of
different from the estimated amount. increment tax on land value.
As the importance of provision of increment tax on land value
on the profit and loss of real estate enterprises, and Management
includes the understanding of relevant tax laws and regulations
and actual practices in consideration for estimation judgment,
we determine the provision of increment tax on land value of
SZPRD as a key audit issue.
4. Other Information
The Company’s management (hereinafter referred to as the Management”) is responsible for the other information. The other
information comprises all of the information included in the Company’s 2022 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
96
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with CAS will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with CAS, we exercise professional judgment and maintain professional skepticism throughout the
audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by the management.
(4) Conclude on the appropriateness of the management’s use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the
Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required by CAS to draw
users’ attention in our auditor’s report to the related disclosures in the financial statements or. if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future
events or conditions may cause the Company to cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, and whether the financial statements represent
the underlying transactions and events in a manner that achieves fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the
Company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the
Company audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding the planned scope and timing of the audit and significant audit
findings, including any noteworthy deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in
the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these
matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of such communication.
Baker Tilly YZ [2023] No.13206
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
BeijingChina
24 March 2023 Chinese CPA Chen Zihan
(Engagement Partner):
Chinese CPA: Zhong Qinfang
II Financial Statements
Currency unit for the financial statements and the notes thereto: RMB
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
1. Consolidated Balance Sheet
Prepared by Shenzhen Properties & Resources Development (Group) Ltd.
31 December 2022
Unit: RMB
Item 31 December 2022 1 January 2022
Current assets:
Monetary assets 1,517,528,893.83 2,280,821,442.11
Settlement reserve
Interbank loans granted
Held-for-trading financial assets
Derivative financial assets
Notes receivable 200,000.00
Accounts receivable 419,933,915.30 293,985,139.93
Accounts receivable financing
Prepayments 100,341,806.56 70,979,023.99
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract reserve
Other receivables 639,903,523.33 926,361,533.14
Including: Interest receivable
Dividends receivable
Financial assets purchased under resale
agreements
Inventories 10,975,334,223.37 9,125,134,062.27
Contract assets 1,094,632.90
Assets held for sale
Current portion of non-current assets
Other current assets 65,655,266.27 58,996,984.81
Total current assets 13,719,792,261.56 12,756,478,186.25
Non-current assets:
Loans and advances to customers
Investments in debt obligations
Investments in other debt obligations
Long-term receivables 22,651,454.07 23,831,889.11
Long-term equity investments 79,781,437.31 50,360,681.37
Investments in other equity
887,838.64 1,002,551.95
instruments
Other non-current financial assets
Investment property 405,762,739.18 459,204,609.35
Fixed assets 82,745,172.12 114,155,590.40
Construction in progress
Productive living assets
Oil and gas assets
Right-of-use assets 70,168,415.65 71,472,680.73
Intangible assets 1,269,382.91 1,753,389.33
Development costs
Goodwill 9,446,847.38 9,446,847.38
Long-term prepaid expense 21,980,602.46 22,751,829.74
Deferred income tax assets 1,383,050,586.04 1,279,816,590.32
Other non-current assets 2,750,873.08 45,571,997.85
Total non-current assets 2,080,495,348.84 2,079,368,657.53
Total assets 15,800,287,610.40 14,835,846,843.78
Current liabilities:
Short-term borrowings
Borrowings from the central bank
Interbank loans obtained
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 608,283,388.52 351,894,812.23
Advances from customers 2,260,847.31 1,381,666.59
Contract liabilities 920,828,040.81 1,374,165,809.40
Financial assets sold under repurchase
agreements
Customer deposits and interbank
deposits
Payables for acting trading of securities
Payables for underwriting of securities
Employee benefits payable 239,126,392.02 230,618,067.23
Taxes payable 3,917,278,346.81 3,316,590,190.34
Other payables 1,515,085,832.45 1,027,622,090.94
Including: Interest payable
Dividends payable 12,202,676.04 17,542,675.98
Handling charges and commissions
payable
Reinsurance payables
Liabilities directly associated with
assets held for sale
Current portion of non-current
218,858,766.82 83,924,701.83
liabilities
Other current liabilities 83,991,786.83 77,403,624.02
Total current liabilities 7,505,713,401.57 6,463,600,962.58
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 3,618,782,344.00 3,524,500,000.00
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 77,963,283.55 83,081,182.89
Long-term payables
Long-term employee benefits payable
Provisions 766,612.52 1,425,490.50
Deferred income
Deferred income tax liabilities 241,978.54 307,853.79
Other non-current liabilities 128,008,919.79 126,059,683.08
Total non-current liabilities 3,825,763,138.40 3,735,374,210.26
Total liabilities 11,331,476,539.97 10,198,975,172.84
Owners’ equity:
Share capital 595,979,092.00 595,979,092.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 80,488,045.38 154,342,349.00
Less: Treasury stock
Other comprehensive income -3,854,377.95 -8,174,653.66
Specific reserve
Surplus reserves 48,886,605.81 47,574,940.18
General reserve
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Retained earnings 3,691,056,182.73 3,800,330,330.23
Total equity attributable to owners of the
4,412,555,547.97 4,590,052,057.75
Company as the parent
Non-controlling interests 56,255,522.46 46,819,613.19
Total owners’ equity 4,468,811,070.43 4,636,871,670.94
Total liabilities and owners’ equity 15,800,287,610.40 14,835,846,843.78
Legal representative: Liu Shengxiang Head of financial affairs: Cai Lili Head of the financial department: Liu Qiang
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 31 December 2022 1 January 2022
Current assets:
Monetary assets 532,263,736.63 1,177,352,486.44
Held-for-trading financial assets
Derivative financial assets
Notes receivable
Accounts receivable 5,137,042.71 2,223,974.66
Accounts receivable financing
Prepayments 5,400.00
Other receivables 5,162,396,869.45 2,412,506,681.28
Including: Interest receivable
Dividends receivable 151,433,108.41
Inventories 793,075,051.53 2,343,857,737.13
Contract assets
Assets held for sale
Current portion of non-current assets
Other current assets 18,130,015.97 496,729.09
Total current assets 6,511,002,716.29 5,936,443,008.60
Non-current assets:
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 1,447,747,317.70 1,109,826,561.76
Investments in other equity
1,118,338.64 1,233,051.95
instruments
Other non-current financial assets
Investment property 260,599,477.89 283,198,989.66
Fixed assets 31,577,309.67 41,133,269.92
Construction in progress
Productive living assets
Oil and gas assets
Right-of-use assets 3,238,351.85 4,075,422.31
Intangible assets
Development costs
Goodwill
Long-term prepaid expense 860,115.06 259,463.73
Deferred income tax assets 152,942,094.59 190,014,842.35
Other non-current assets 2,362,376,650.86 1,718,846,484.20
Total non-current assets 4,260,459,656.26 3,348,588,085.88
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Total assets 10,771,462,372.55 9,285,031,094.48
Current liabilities:
Short-term borrowings
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 41,228,778.20 48,640,839.24
Advances from customers 952,186.65 425,164.77
Contract liabilities 840,878,470.63 524,139,983.49
Employee benefits payable 56,425,731.67 49,313,279.30
Taxes payable 1,783,757.84 4,678,424.25
Other payables 7,258,663,180.38 5,963,004,158.44
Including: Interest payable
Dividends payable 29,642.40 29,642.40
Liabilities directly associated with
assets held for sale
Current portion of non-current
190,431,469.82 65,163,793.74
liabilities
Other current liabilities 75,679,062.35 47,172,598.51
Total current liabilities 8,466,042,637.54 6,702,538,241.74
Non-current liabilities:
Long-term borrowings 462,000,000.00 525,100,000.00
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 1,947,178.87 2,976,367.29
Long-term payables
Long-term employee benefits payable
Provisions
Deferred income
Deferred income tax liabilities
Other non-current liabilities 40,000,000.00 40,000,000.00
Total non-current liabilities 503,947,178.87 568,076,367.29
Total liabilities 8,969,989,816.41 7,270,614,609.03
Owners’ equity:
Share capital 595,979,092.00 595,979,092.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 53,876,380.11 53,876,380.11
Less: Treasury stock
Other comprehensive income -2,742,841.65 -2,574,121.54
Specific reserve
Surplus reserves 48,886,605.81 29,637,548.47
Retained earnings 1,105,473,319.87 1,337,497,586.41
Total owners’ equity 1,801,472,556.14 2,014,416,485.45
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Total liabilities and owners’ equity 10,771,462,372.55 9,285,031,094.48
3. Consolidated Income Statement
Unit: RMB
Item 2022 2021
1. Revenue 3,708,669,046.85 4,911,120,528.33
Including: Operating revenue 3,708,669,046.85 4,911,120,528.33
Interest revenue
Insurance premium income
Handling charge and commission
income
2. Costs and expenses 3,142,047,245.48 3,584,941,653.00
Including: Cost of sales 1,978,777,621.22 1,827,382,823.18
Interest costs
Handling charge and commission
expense
Surrenders
Net insurance claims paid
Net amount provided as insurance
contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surcharges 725,920,657.80 1,352,677,993.06
Selling expense 53,541,997.78 73,372,016.02
Administrative expense 329,991,655.74 323,975,355.61
R&D expense 3,244,129.11 2,171,797.80
Finance costs 50,571,183.83 5,361,667.33
Including: Interest expense 64,941,564.63 75,361,420.03
Interest income 21,591,864.72 75,033,921.17
Add: Other income 19,484,058.67 32,012,226.29
Return on investment (“-” for loss) 1,981,330.90 6,609,725.37
Including: Share of profit or loss of joint
2,040,461.81 4,650,460.58
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 (“-”
117,082.19 193,746.57
for loss)
Credit impairment loss (“-” for loss) -17,395,139.90 -29,194,857.89
Asset impairment loss (“-” for loss) -528,430.23 23,120.82
Asset disposal income (“-” for loss) 175,810,605.44 27.94
3. Operating profit (“-” for loss) 746,091,308.44 1,335,822,864.43
Add: Non-operating income 7,198,004.28 15,587,559.41
Less: Non-operating expense 2,556,893.74 7,495,978.90
4. Profit before tax (“-” for loss) 750,732,418.98 1,343,914,444.94
Less: Income tax expense 221,391,811.02 335,904,738.19
5. Net profit (“-” for net loss) 529,340,607.96 1,008,009,706.75
5.1 By operating continuity
5.1.1 Net profit from continuing
529,340,607.96 1,008,009,706.75
operations (“-” for net loss)
103
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
5.1.2 Net profit from discontinued
operations (“-” for net loss)
5.2 By ownership
5.2.1 Net profit attributable to
shareholders of the Company as the 537,664,698.69 1,025,380,909.03
parent
5.2.1 Net profit attributable to non-
-8,324,090.73 -17,371,202.28
controlling interests
6. Other comprehensive income, net of
4,320,275.71 -1,425,064.25
tax
Attributable to owners of the Company
4,320,275.71 -1,425,064.25
as the parent
6.1 Items that will not be reclassified to
-168,720.11 -28,670.35
profit or loss
6.1.1 Changes caused by
remeasurements on defined benefit
schemes
6.1.2 Other comprehensive income that
will not be reclassified to profit or loss
under the equity method
6.1.3 Changes in the fair value of
-168,720.11 -28,670.35
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
4,488,995.82 -1,396,393.90
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- 4,488,995.82 -1,396,393.90
denominated financial statements
6.2.7 Other
Attributable to non-controlling interests
7. Total comprehensive income 533,660,883.67 1,006,584,642.50
Attributable to owners of the Company
541,984,974.40 1,023,955,844.78
as the parent
Attributable to non-controlling interests -8,324,090.73 -17,371,202.28
8. Earnings per share
8.1 Basic earnings per share 0.9022 1.7205
8.2 Diluted earnings per share 0.9022 1.7205
Where business combinations under common control occurred in the Current Period, the net profit achieved by the acquirees
before the combinations was RMB9,596,148.16, with the amount for the same period of last year being RMB21,251,005.70.
Legal representative: Liu Shengxiang Head of financial affairs: Cai Lili Head of the financial department: Liu Qiang
4. Income Statement of the Company as the Parent
Unit: RMB
Item 2022 2021
1. Operating revenue 75,486,414.74 80,529,601.93
Less: Cost of sales 44,999,240.65 38,571,950.27
104
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Taxes and surcharges 5,106,898.84 7,146,348.46
Selling expense 400,095.36 2,006,401.50
Administrative expense 102,699,790.62 95,334,812.14
R&D expense
Finance costs 6,565,334.70 -34,874,500.11
Including: Interest costs 27,016,860.03 25,501,758.97
Interest revenue 13,235,541.77 63,489,075.60
Add: Other income 183,849.33 20,102,972.08
Return on investment (“-” for loss) 313,407,689.63 134,368,018.21
Including: Share of profit or loss of joint
2,040,461.81 4,650,460.58
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) 280,304.06 -356,512.44
Asset impairment loss (“-” for loss)
Asset disposal income (“-” for loss)
2. Operating profit (“-” for loss) 229,586,897.59 126,459,067.52
Add: Non-operating income 7,173,820.40
Less: Non-operating expense 23,576.47 169,457.44
3. Profit before tax (“-” for loss) 229,563,321.12 133,463,430.48
Less: Income tax expense 37,072,747.76 29,147,742.04
4. Net profit (“-” for net loss) 192,490,573.36 104,315,688.44
4.1 Net profit from continuing
192,490,573.36 104,315,688.44
operations (“-” for net loss)
4.2 Net profit from discontinued
operations (“-” for net loss)
5. Other comprehensive income, net of
-168,720.11 -28,670.35
tax
5.1 Items that will not be reclassified to
-168,720.11 -28,670.35
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
-168,720.11 -28,670.35
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
105
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
translation of foreign currency-
denominated financial statements
5.2.7 Other
6. Total comprehensive income 192,321,853.25 104,287,018.09
7. Earnings per share
7.1 Basic earnings per share 0.3230 0.1750
7.2 Diluted earnings per share 0.3230 0.1750
5. Consolidated Cash Flow Statement
Unit: RMB
Item 2022 2021
1. Cash flows from operating activities:
Proceeds from sale of commodities and
3,437,128,020.73 5,848,887,354.06
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 10,058,351.98 42,434,277.83
Cash generated from other operating
1,078,867,968.60 354,846,811.16
activities
Subtotal of cash generated from
4,526,054,341.31 6,246,168,443.05
operating activities
Payments for commodities and services 2,510,779,597.33 4,893,470,956.31
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 983,205,651.52 941,865,001.94
Taxes paid 688,906,681.47 1,533,290,206.83
Cash used in other operating activities 237,929,307.13 706,522,030.42
Subtotal of cash used in operating
4,420,821,237.45 8,075,148,195.50
activities
Net cash generated from/used in
105,233,103.86 -1,828,979,752.45
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 297,479.85
106
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Return on investment 122,536.02
Net proceeds from the disposal of fixed
assets, intangible assets and other long- 197,192,641.96 112,437.89
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
197,490,121.81 234,973.91
activities
Payments for the acquisition of fixed
assets, intangible assets and other long- 17,734,048.21 24,851,720.82
lived assets
Payments for investments 27,380,294.13
Net increase in pledged loans granted
Net payments for the acquisition of
4,292,240.68
subsidiaries and other business units
Cash used in other investing activities
Subtotal of cash used in investing
45,114,342.34 29,143,961.50
activities
Net cash generated from/used in
152,375,779.47 -28,908,987.59
investing activities
3. Cash flows from financing activities:
Capital contributions received 17,760,000.00 2,140,000.00
Including: Capital contributions by non-
17,760,000.00 2,140,000.00
controlling interests to subsidiaries
Borrowings raised 285,589,674.44
Cash generated from other financing
activities
Subtotal of cash generated from
303,349,674.44 2,140,000.00
financing activities
Repayment of borrowings 63,300,000.00 31,000,000.00
Interest and dividends paid 593,986,146.21 482,143,700.54
Including: Dividends paid by subsidiaries
to non-controlling interests
Cash used in other financing activities 306,511,487.27 62,778,403.22
Subtotal of cash used in financing
963,797,633.48 575,922,103.76
activities
Net cash generated from/used in
-660,447,959.04 -573,782,103.76
financing activities
4. Effect of foreign exchange rates
4,790,697.94 -1,487,028.62
changes on cash and cash equivalents
5. Net increase in cash and cash
-398,048,377.77 -2,433,157,872.42
equivalents
Add: Cash and cash equivalents,
1,907,742,235.25 4,340,900,107.67
beginning of the period
6. Cash and cash equivalents, end of the
1,509,693,857.48 1,907,742,235.25
period
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item 2022 2021
1. Cash flows from operating activities:
Proceeds from sale of commodities and
421,114,781.33 655,800,441.53
rendering of services
Tax rebates 33,168,933.87
Cash generated from other operating
1,762,436,455.47 2,571,773,113.99
activities
107
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Subtotal of cash generated from
2,183,551,236.80 3,260,742,489.39
operating activities
Payments for commodities and services 97,820,597.35 1,726,321,339.89
Cash paid to and for employees 65,677,185.99 63,355,236.26
Taxes paid 34,805,390.11 12,501,445.12
Cash used in other operating activities 1,082,444,909.69 3,120,104,282.29
Subtotal of cash used in operating
1,280,748,083.14 4,922,282,303.56
activities
Net cash generated from/used in
902,803,153.66 -1,661,539,814.17
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 1,841,000,000.00 50,000,000.00
Return on investment 473,625,777.76
Net proceeds from the disposal of fixed
assets, intangible assets and other long- 209.00 2,344.57
lived assets
Net proceeds from the disposal of
subsidiaries and other business units
Cash generated from other investing
activities
Subtotal of cash generated from
2,314,625,986.76 50,002,344.57
investing activities
Payments for the acquisition of fixed
assets, intangible assets and other long- 1,154,885.13 2,309,879.80
lived assets
Payments for investments 3,124,506,071.91 466,000,000.00
Net payments for the acquisition of
subsidiaries and other business units
Cash used in other investing activities
Subtotal of cash used in investing
3,125,660,957.04 468,309,879.80
activities
Net cash generated from/used in
-811,034,970.28 -418,307,535.23
investing activities
3. Cash flows from financing activities:
Capital contributions received
Borrowings raised 125,000,000.00
Cash generated from other financing
activities
Subtotal of cash generated from
125,000,000.00
financing activities
Repayment of borrowings 63,100,000.00 30,800,000.00
Interest and dividends paid 432,215,867.55 269,890,778.58
Cash used in other financing activities 1,603,790.70 1,198,076.70
Subtotal of cash used in financing
496,919,658.25 301,888,855.28
activities
Net cash generated from/used in
-371,919,658.25 -301,888,855.28
financing activities
4. Effect of foreign exchange rates
12,768.24 -12,608.83
changes on cash and cash equivalents
5. Net increase in cash and cash
-280,138,706.63 -2,381,748,813.51
equivalents
Add: Cash and cash equivalents,
808,411,401.68 3,190,160,215.19
beginning of the period
6. Cash and cash equivalents, end of the
528,272,695.05 808,411,401.68
period
108
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
7. Consolidated Statements of Changes in Owners’ Equity
2022
Unit: RMB
2022
Equity attributable to owners of the Company as the parent
Other equity Othe Non-
instruments r contr
Item Shar Capi Less: com Spec Surp Gene Retai ollin Total owners’
e Prefe Perp tal Trea preh ific lus ral ned Othe Subt g equity
capit rred etual Othe reser sury ensiv reser reser reser earni r otal inter
al share bond r ves stock e ve ves ve ngs ests
s s inco
me
-
1. Balance 595, 80,4 8,17 29,6 3,78 4,48 44,9
as at the end 979, 88,0 4,65 37,5 8,18 6,11 79,6 4,531,090,46
of the prior 092. 45.3 3.6 48.4 0,75 0,79 74.1 4.58
year 00 8 7 8.20 0.39 9
6
Add:
Adjustment
for change
in
accounting
policy
Adjustment
for
correction
of previous
error
Adjustment
for business 73,8 17,9 12,1 103,
combination 1,83
54,3 37,3 49,5 941, 105,781,206.
under 9,93
common 03.6 91.7 72.0 267. 36
9.00
control 2 1 3 36
Other
adjustments
2. Balance 595, -
154, 47,5 3,80 4,59 46,8
as at the 979, 8,17
342, 74,9 0,33 0,05 19,6 4,636,871,67
beginning of 092. 4,65
the year 349. 40.1 0,33 2,05 13.1 0.94
00 3.66
00 8 0.23 7.75 9
- -
3. Increase/ 73,8 -
177,
decrease in 54,3 1,31 109, -
4,32 496, 9,43
the period 03.6 1,66 274, 168,060,600.
0,27 509. 5,90
(“-” for 2 5.63 147. 51
5.71 78 9.27
decrease) 50
537, 541, -
3.1 Total 4,32
664, 984, 8,32 533,660,883.
comprehensi 0,27
ve income 698. 974. 4,09 67
5.71
69 40 0.73
- - - - 17,7 -
3.2 Capital
73,8 17,9 222, 314, 296,455,701.
increased 60,0
54,3 37,3 424, 215, 62
and reduced 00.0
03.6 91.7 006. 701.
by owners 0
2 1 29 62
109
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
3.2.1 17,7
Ordinary
60,0 17,760,000.0
shares
increased by 00.0 0
owners 0
3.2.2
Capital
increased by
holders of
other equity
instruments
3.2.3 Share-
based
payments
included in
owners’
equity
- - - -
73,8 17,9 222, 314, -
54,3 37,3 424, 215, 314,215,701.
3.2.4 Other 03.6 91.7 006. 701. 62
2 1 29 62
- -
19,2
424, 405, -
3.3 Profit 49,0
514, 265, 405,265,782.
distribution 57.3
839. 782. 56
4
90 56
3.3.1 -
19,2
Appropriati 19,2
49,0
on to 49,0
surplus 57.3
57.3
reserves 4
4
3.3.2
Appropriati
on to
general
reserve
3.3.3 - -
Appropriati 405, 405, -
on to
265, 265, 405,265,782.
owners (or
shareholders 782. 782. 56
) 56 56
3.3.4
Other
3.4
Transfers
within
owners’
equity
3.4.1
Increase in
capital (or
share
capital)
from capital
reserves
3.4.2
Increase in
capital (or
share
capital)
from surplus
110
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
reserves
3.4.3
Loss offset
by surplus
reserves
3.4.4
Changes in
defined
benefit
schemes
transferred
to retained
earnings
3.4.5
Other
comprehensi
ve income
transferred
to retained
earnings
3.4.6
Other
3.5 Specific
reserve
3.5.1
Increase in
the period
3.5.2
Used in the
period
3.6 Other -
595, 80,4 - 48,8 3,69 4,41 56,2
4. Balance
979, 88,0 3,85 86,6 1,05 2,55 55,5 4,468,811,07
as at the end
of the period 092. 45.3 4,37 05.8 6,18 5,54 22.4 0.43
00 8 7.95 1 2.73 7.97 6
2021
Unit: RMB
2021
Equity attributable to owners of the Company as the parent
Other equity Othe Non-
instruments r contr
Item Shar Capi Less: com Spec Surp Gene Retai ollin Total owners’
e Prefe Perp tal Trea preh ific lus ral ned Othe Subt g equity
capit rred etual Othe reser sury ensiv reser reser reser earni r otal inter
al share bond r ves stock e ve ves ve ngs ests
s s inco
me
1. Balance 595, 80,4 - 19,2 3,03 3,72 53,2
as at the end 979, 88,0 6,74 05,9 8,99 7,91 04,0 3,781,121,47
of the prior 092. 45.3 9,58 79.6 3,91 7,44 39.8 9.83
year 00 8 9.41 3 2.43 0.03 0
Add:
Adjustment
for change
in
accounting
policy
Adjustment
for
correction
of previous
error
111
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Adjustment -
for business 73,8 17,9 82,5
9,26
combination 54,3 37,3 30,2 82,530,200.6
1,49
under 03.6 91.7 00.6 6
4.67
common 2 1 6
control
Other
adjustments
2. Balance 595, 154, - 37,1 3,02 3,81 53,2
as at the 979, 342, 6,74 43,3 9,73 0,44 04,0 3,863,651,68
beginning of 092. 349. 9,58 71.3 2,41 7,64 39.8 0.49
the year 00 00 9.41 4 7.76 0.69 0
3. Increase/ - 10,4 770, 779, -
decrease in
1,42 31,5 597, 604, 6,38 773,219,990.
the period
(“-” for 5,06 68.8 912. 417. 4,42 45
decrease) 4.25 4 47 06 6.61
-
- 1,02 1,02
3.1 Total 17,3
1,42 5,38 3,95 1,006,584,64
comprehensi 71,2
ve income 5,06 0,90 5,84 2.50
02.2
4.25 9.03 4.78
8
3.2 Capital 10,9
increased 86,7 10,986,775.6
and reduced 75.6 7
by owners 7
3.2.1
Ordinary 2,14
shares 0,00 2,140,000.00
increased by 0.00
owners
3.2.2
Capital
increased by
holders of
other equity
instruments
3.2.3 Share-
based
payments
included in
owners’
equity
8,84
3.2.4 Other 6,77 8,846,775.67
5.67
- -
10,4
254, 244, -
3.3 Profit 31,5
782, 351, 244,351,427.
distribution 68.8
996. 427. 72
4
56 72
3.3.1 -
10,4
Appropriati 10,4
31,5
on to 31,5
surplus 68.8
68.8
reserves 4
4
3.3.2
Appropriati
on to
general
reserve
3.3.3 - - -
112
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Appropriati 244, 244, 244,351,427.
on to 351, 351, 72
owners (or
427. 427.
shareholders
) 72 72
3.3.4
Other
3.4
Transfers
within
owners’
equity
3.4.1
Increase in
capital (or
share
capital)
from capital
reserves
3.4.2
Increase in
capital (or
share
capital)
from surplus
reserves
3.4.3
Loss offset
by surplus
reserves
3.4.4
Changes in
defined
benefit
schemes
transferred
to retained
earnings
3.4.5
Other
comprehensi
ve income
transferred
to retained
earnings
3.4.6
Other
3.5 Specific
reserve
3.5.1
Increase in
the period
3.5.2
Used in the
period
3.6 Other
595, 154, - 47,5 3,80 4,59 46,8
4. Balance
979, 342, 8,17 74,9 0,33 0,05 19,6 4,636,871,67
as at the end
of the period 092. 349. 4,65 40.1 0,33 2,05 13.1 0.94
00 00 3.66 8 0.23 7.75 9
8. Statements of Changes in Owners’ Equity of the Company as the Parent
2022
113
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Unit: RMB
2022
Other equity instruments Other
Less: compr Surplu Retain
Item Capital Specifi
Share Preferr Perpet Treasu ehensi s ed Total owners’
reserve c Other
capital ed ual Other ry ve reserve earnin equity
s reserve
shares bonds stock incom s gs
e
1. Balance as 595,97 53,876 - 29,637 1,337,
2,014,416,485.
at the end of 9,092. ,380.1 2,574, ,548.4 497,58
the prior year 45
00 1 121.54 7 6.41
Add:
Adjustment
for change in
accounting
policy
Adjustment
for correction
of previous
error
Other
adjustments
2. Balance as 595,97 53,876 - 29,637 1,337,
at the 2,014,416,485.
9,092. ,380.1 2,574, ,548.4 497,58
beginning of 45
the year 00 1 121.54 7 6.41
3. Increase/ -
- 19,249
decrease in 232,02 -
168,72 ,057.3
the period (“-” 4,266. 212,943,929.31
for decrease) 0.11 4
54
3.1 Total - 192,49
comprehensiv 168,72 0,573. 192,321,853.25
e income 0.11 36
3.2 Capital
increased and
reduced by
owners
3.2.1 Ordinary
shares
increased by
owners
3.2.2 Capital
increased by
holders of
other equity
instruments
3.2.3 Share-
based
payments
included in
owners’ equity
3.2.4 Other
-
19,249
3.3 Profit 424,51 -
,057.3
distribution 4,839. 405,265,782.56
4
90
3.3.1 -
19,249
Appropriation 19,249
,057.3
to surplus ,057.3
reserves 4
4
3.3.2
- -
Appropriation
to owners (or 405,26 405,265,782.56
114
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
shareholders) 5,782.
56
3.3.3 Other
3.4 Transfers
within
owners’ equity
3.4.1
Increase in
capital (or
share capital)
from capital
reserves
3.4.2
Increase in
capital (or
share capital)
from surplus
reserves
3.4.3 Loss
offset by
surplus
reserves
3.4.4
Changes in
defined
benefit
schemes
transferred to
retained
earnings
3.4.5 Other
comprehensiv
e income
transferred to
retained
earnings
3.4.6 Other
3.5 Specific
reserve
3.5.1
Increase in the
period
3.5.2 Used
in the period
3.6 Other
4. Balance as 595,97 53,876 - 48,886 1,105,
1,801,472,556.
at the end of 9,092. ,380.1 2,742, ,605.8 473,31
the period 14
00 1 841.65 1 9.87
2021
Unit: RMB
2021
Other equity instruments Other
Less: compr Surplu Retain
Item Capital Specifi
Share Preferr Perpet Treasu ehensi s ed Total owners’
reserve c Other
capital ed ual Other ry ve reserve earnin equity
s reserve
shares bonds stock incom s gs
e
1. Balance as 595,97 53,876 - 19,205 1,487,
2,154,480,895.
at the end of 9,092. ,380.1 2,545, ,979.6 964,89
the prior year 08
00 1 451.19 3 4.53
Add:
Adjustment
for change in
115
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
accounting
policy
Adjustment
for correction
of previous
error
Other
adjustments
2. Balance as 595,97 53,876 - 19,205 1,487,
at the 2,154,480,895.
9,092. ,380.1 2,545, ,979.6 964,89
beginning of 08
the year 00 1 451.19 3 4.53
3. Increase/ -
- 10,431
decrease in 150,46 -
28,670 ,568.8
the period (“-” 7,308. 140,064,409.63
for decrease) .35 4
12
3.1 Total - 104,31
comprehensiv 28,670 5,688. 104,287,018.09
e income .35 44
3.2 Capital
increased and
reduced by
owners
3.2.1 Ordinary
shares
increased by
owners
3.2.2 Capital
increased by
holders of
other equity
instruments
3.2.3 Share-
based
payments
included in
owners’ equity
3.2.4 Other
-
10,431
3.3 Profit 254,78 -
,568.8
distribution 2,996. 244,351,427.72
4
56
3.3.1 -
10,431
Appropriation 10,431
,568.8
to surplus ,568.8
reserves 4
4
3.3.2 -
Appropriation 244,35 -
to owners (or 1,427. 244,351,427.72
shareholders) 72
3.3.3 Other
3.4 Transfers
within
owners’ equity
3.4.1
Increase in
capital (or
share capital)
from capital
reserves
3.4.2
Increase in
capital (or
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
share capital)
from surplus
reserves
3.4.3 Loss
offset by
surplus
reserves
3.4.4
Changes in
defined
benefit
schemes
transferred to
retained
earnings
3.4.5 Other
comprehensiv
e income
transferred to
retained
earnings
3.4.6 Other
3.5 Specific
reserve
3.5.1
Increase in the
period
3.5.2 Used
in the period
3.6 Other
4. Balance as 595,97 53,876 - 29,637 1,337,
2,014,416,485.
at the end of 9,092. ,380.1 2,574, ,548.4 497,58
the period 45
00 1 121.54 7 6.41
III Company Profile
Shenzhen Properties & Resources Development (Group) Ltd. (hereinafter referred to as “the Company” or “Company”) was
incorporated based on the reconstruction of Shenzhen Properties & Resources Development Co., Ltd. after obtaining approval of
ZFBF [1991] No. 831 from People’s Government of Shenzhen Municipality. It was registered with Shenzhen Industrial and
Commercial Administration Bureau on 17 January 1983 with Shenzhen as its headquarters. Now the Company holds the business
license for legal person with the registration number/unified social credit code of 91440300192174135N. The registered capital was
RMB595,979,092 with the total shares of 595,979,092 (RMB1 face value per share), among which, restricted public shares:
1,898,306 A shares and 0 B shares; unrestricted public shares: 526,475,543 A shares and 67,605,243 B shares. The stock of the
Company has been listed on the Shenzhen Stock Exchange on 30 March 1992.
The Company is in the real estate sector. Its main business includes development of real estate and sale of commercial housing,
construction and management of buildings, house rent, supervision of construction, domestic trading and materials supply and
marketing (excluding exclusive dealing and monopoly sold products and commodities under special control to purchase). Main
products or services rendered mainly include the development and sales of commercial residential housing; property management;
buildings and the building devices maintenance, garden afforest and cleaning service; property leasing; supervise and management of
the engineering; retails of the Chinese food, Western-style food and wines, and etc.
The financial statements were approved and authorized for issue by the 17th Meeting of the 10th Board of Directors of the Company
on 24 March 2023.
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
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Company. There were 63 subsidiaries included in the consolidation financial statements in this report. Please refer to the Note VIII
and Note IX of the financial report for details.
IV Basis for Preparation of Financial Statements
1. Preparation Basis
Based on the continuing operation, the financial statements of the Company are prepared in accordance with the actual
transactions, governing provisions of the Accounting Standards for Business Enterprises and the following major accounting
policies and estimates.
2. Continuation
There was no such case where the sustainable operation ability within 12 months since the end of the Reporting Period was highly
doubted.
V. Important Accounting Policies and Estimations
Indication of specific accounting policies and estimations:
1. Statement for Complying with the Accounting Standard for Business Enterprise
The financial statement prepared by the Company complies with the requirements of the latest accounting standards for business
enterprises as well as the application guidelines, interpretations and other relevant regulations (hereinafter referred to as the
“accounting standards for business enterprises”) issued by the Ministry of Finance. It reflects the Company’s financial conditions,
operating results, cash flow and other related information in a truthful and complete manner.
In addition, in the preparation of the financial report, reference was made to the presentation and disclosure requirements of the Rule
for Information Disclosure by Companies Offering Securities to the Public No. 15 - General Provisions on Financial Reports (2014
Revision) and the Notice on Related Matters of the Implementation of New Accounting Standards for Business Enterprises by Listed
Companies (KJBH [2018] No. 453).
2. Fiscal Period
The fiscal year of the Company is a solar calendar year, which is from 1 January to 31 December.
3. Operating Cycle
Except for the real estate industry, other businesses run by the Company have relatively short operating cycles according to the
classification standard of 12-month’s liquidity of assets and liabilities. The operating cycle of the real estate industry shall be
generally more than 12 months from real estate development to cash the sales. The specific cycle shall be determined by the
development project and classified by the assets and liabilities liquidity.
4. Standard Currency of Accounts
The Company adopts Renminbi as a standard currency of accounts.
5. Accounting Process of Business Combinations under the Same Control and not under the Same Control
1. Accounting Process of Business Combinations under the Same Control
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
For business combination under the same control achieved through one transaction or step by step through multiple transactions by
the Company, the assets and liabilities acquired in a business combination are measured at the carrying value of the acquiree in the
consolidated financial statements of the ultimate controlling party at the date of combination. The difference between the carrying
value of net assets acquired by the Company and the carrying value of the combination consideration paid (or the total nominal value
of shares issued) is referred to for adjusting capital reserve; if capital reserve is not sufficient to offset the difference, then retained
earnings are adjusted.
2. Accounting Process of Business Combinations not under the Same Control
The Group shall recognize the positive balance between the combination costs and the fair value of the identifiable net assets
obtained from the acquiree on purchase date as goodwill. If the combination costs are less than the fair value of the identifiable net
assets obtained from the acquire, the Company shall recheck the various identifiable assets and liabilities obtained from the acquire,
fair value with liabilities, and measurement of combination costs. If the combination costs are less than the fair value of the
identifiable net assets obtained from the acquire after recheck, the Company shall the record the balance into the profit and loss of the
current period.
Business combinations not under the same control achieved step by step through multiple transactions should be treated in the
following order:
(1) Adjusting the initial investment cost of long-term equity investment If the equity held prior to the date of purchase is accounted
under the equity method, the equity is remeasured at the fair value on the purchase date, and the difference between the fair value and
its carrying value is included in the investment income of the current period; if the equity in the acquiree held prior to the purchase
date involves other comprehensive income or changes in other owners' equity under the equity method of accounting, it is converted
into income for the current period on the purchase date, except for other comprehensive income arising from the re-measurement of
the investee's net liabilities of the defined benefit pension plan or changes in net assets of the defined benefit plan and changes in the
fair value of investments in other equity instruments held.
(2) Determining the goodwill (or the amount included in the profit or loss for the current period) When comparing the initial
investment cost of long-term equity investments adjusted in the first step with the share of the fair value of the identifiable net assets
of the subsidiary on the purchase date, if the former is more than the latter, the difference between the former and the latter is
recognized as goodwill; if the former is less than the latter, the difference is included in profit or loss for the current period.
Step-by-step disposal of equity through multiple transactions that results in loss of control over the subsidiary
(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
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
should be accounted for as a transaction that disposes of and loses control over a subsidiary; however, the difference between the
disposal price and the share of the net assets of the subsidiary corresponding to the disposal of the investment for each disposal prior
to the loss of control should be recognized as other comprehensive earnings in the consolidated financial statements and transferred
to profit or loss for the current period when the Company lost the control.
In the consolidated financial statements, the remaining equity should be remeasured at fair value on the date of loss of control. The
sum of the consideration obtained from the disposition of equity and the fair value of the residual equity minus the Company's
portion of net assets in the former subsidiary calculated from the date of combination on an ongoing basis at the original shareholding
ratio is included in the return on investment for the current period when the Company lost the control. Other comprehensive income
related to the equity investments in the former subsidiary should be included in the return on investment or retained earnings for the
current period when the Company lost the control.
(3) Accounting treatment when transactions in the process of step-by-step disposal of equity that results in the loss of control over a
subsidiary do not constitute a "package deal"
If the Company disposes of investments made in its subsidiary without losing control over the subsidiary, in the consolidated
financial statements, the difference between the payment for equity disposed of and the Company's corresponding portion of net
assets in the subsidiary is included in the capital reserve. If the capital reserve is insufficient for offset, the retained earnings should
be adjusted.
If the disposal of investments made in its subsidiary results in a loss of control over the subsidiary, in the consolidated financial
statements, the remaining equity should be remeasured at the fair value on the date of loss of control. The sum of the consideration
obtained from the disposition of equity and the fair value of the residual equity minus the Company's portion of net assets in the
former subsidiary calculated from the date of combination on an ongoing basis at the original shareholding ratio is included in the
return on investment for the current period when the Company lost the control. Other comprehensive income related to the equity
investments in the former subsidiary should be included in the return on investment or retained earnings for the current period when
the Company lost the control.
6. Methods for Preparing Consolidated Financial Statements
Based on the financial statements of the Company as the parent and its subsidiaries and other related materials, the consolidated
financial statements were prepared by the Group as the parent according to Accounting Standards for Enterprises No. 33 –
Consolidated Financial Statements.
7. Classification of Joint arrangements and Accounting Treatment of Joint Operations
1. Identification and classification of joint arrangements
A joint arrangement is an arrangement over which two or more parties have joint control. A joint arrangement has the following
characteristics: (1) Each participant is bound by the arrangement; (2) two or more parties of the joint arrangement exercise joint
control over the arrangement. No one party can control the arrangement alone, and any party with joint control over the arrangement
can prevent the other party or combination of parties from controlling the arrangement alone.
Joint control refers to the common control over a particular arrangement according to relevant agreement, and that the decisions on
relevant activities under such arrangement are subject to unanimous consent from the parties sharing the joint control.
Joint arrangements are divided into joint operations and joint ventures. A joint operation is a joint arrangement whereby the party to
joint arrangement has rights to the assets, and obligations for the liabilities related to the arrangement. A joint venture is a joint
arrangement whereby the party to joint arrangement has rights to the net assets of the arrangement.
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
2. Accounting treatment of joint arrangements
A party to a joint operation shall recognize the following items related to its share of interest in the joint operation and conduct
accounting treatment for them in accordance with the relevant provisions of the Accounting Standard for Business Enterprises: (1)
Recognition of assets held separately and of assets held jointly in proportion to its share; (2) recognition of liabilities incurred
separately and of liabilities incurred jointly in proportion to its share; (3) recognition of revenue from the sale of its share of the
output of the joint operation; (4) recognition of revenue from the sale of output of the joint operation in proportion to its share; (5)
recognition of expenses incurred separately and of expenses incurred in the joint operation in proportion to its share.
The party to a joint venture should conduct accounting treatment in accordance with relevant provisions of the Accounting Standards
for Business Enterprises No. 2 - Long-term Equity Investment.
8. Recognition Standard for Cash and Cash Equivalents
In the Company’s understanding, cash and cash equivalents include cash on hand, any deposit that can be used for cover, and short-
term (usually due within 3 months since the day of purchase) and high circulating investments, which are easily convertible into
known amount of cash and whose risks in change of value are minimal.
9. Foreign Currency Businesses and Translation of Foreign Currency Financial Statements
(1) Accounting treatments for translation of foreign currency business
As for a foreign currency transaction in its initial recognition, the amount in the foreign currency shall be translated into the amount
in the Renminbi at the spot exchange rate of the transaction date. On balance sheet date, the foreign currency monetary items shall be
translated as the spot exchange rate on the balance sheet date, the balance occurred thereof shall be recorded into the profits and
losses at the current period except that the balance of exchange arising from the principal and interests of foreign currency
borrowings for the purchase and construction or production of assets eligible for capitalization. The foreign currency non-monetary
items measured at the historical cost shall still be translated at the spot exchange rate on the transaction date, of which the amount of
functional currency shall not be changed. The foreign currency non-monetary items measured at the fair value shall be translated at
the spot exchange rate on the confirming date of fair value, of which the balance of exchange shall be included into the profit and
loss of the current period or other comprehensive income.
(2) Translation of foreign currency financial statements
The asset and liability items in the balance sheets shall be translated at a spot exchange rate on the balance sheet date. Among the
owner’s equity items, except for the items as “retained earnings”, other items shall be translated at the spot exchange rate at the time
when they are incurred. The income and expense items in the income statements shall be translated at the spot exchange rate at the
time when they are incurred. The difference from translation of foreign currency financial statements thereof shall be recognized as
comprehensive income.
10. Financial Instruments
1. Recognition and derecognition of financial instruments
When the Group becomes a party to a financial instrument contract, it recognizes relevant financial assets or financial liabilities.
All regular acquisition or sales of financial assets are recognized and derecognized on a trading day basis. Regular acquisition or
sales of financial assets means delivering financial assets within the time limit of laws, regulations and usual market practices and in
line with contract terms. The trading day refers to the date when the Group promises to acquire or sell financial assets.
Financial assets (or part of financial assets, or part of a set of similar financial assets) are derecognized, i.e., written off from its
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
account and balance sheet, if the following conditions are met:
(1) The right to receive cash flows from financial assets has expired;
(2) The right to receive cash flows from the financial assets is transferred, or the obligation to pay the full amount of cash flows
received to a third party in a timely manner is assumed under a "pass-through agreement"; and (a) substantially almost all the risks
and rewards of its ownership of the financial assets are transferred, or (b) control over the financial asset is relinquished, although
substantially all the risks and rewards of its ownership of the financial assets are neither transferred nor retained.
2. Classification and measurement of financial assets
At initial recognition, according to the business model of managing financial assets and the contractual cash flow characteristics of
financial assets, financial assets of the Group are classified into the following categories: Financial assets measured at the amortized
cost, financial assets measured at fair value through other comprehensive income of the current period, and financial assets measured
at fair value through profit and loss for the current period. The subsequent measurement of financial assets depended on their
categories.
The Group's classification of financial assets is based on the Group's business model for managing financial assets and the cash flow
characteristics of the financial assets.
(1) Financial assets measured at amortized cost
Financial assets that meet both of the following conditions shall be classified as financial assets measured at amortized cost: The
Group's business model of managing the financial assets aims at obtaining contractual cash flows; and, as stipulated by contract
clauses of the financial assets, the cash flows generated on a specific date are merely for the payment of principal or interest from the
unpaid principal. Such financial assets are subsequently measured at amortized cost using the effective interest method. Gain or loss
arising from derecognition or amortization using the effective interest method is included in profit and loss for the current period.
(2) Debt instrument investment measured at fair value through other comprehensive income
Financial assets that meet all the following conditions shall be classified as financial assets measured at fair value through other
comprehensive income: The Group's business model of managing the financial assets aims at obtaining contractual cash flows as well
as selling financial assets; and, as stipulated by contract clauses of the financial assets, the cash flows generated on a specific date are
merely for the payment of principal or interest from the unpaid principal. Such financial assets shall be subsequently measured at fair
value. The discount or premium is amortized using the effective interest method and recognized as interest income or expense.
Except for impairment losses or gains and exchange differences that are recognized as profit and loss for the current period, changes
in the fair value of such financial assets shall be recognized as other comprehensive income, until the financial assets are
derecognized when accumulative gains or losses shall be transferred to profit and loss for the current period. Interest income related
to such financial assets is included in profit or loss for the current period.
(3) Equity instrument investment measured at fair value through other comprehensive income
For financial assets measured at fair value through other comprehensive income that are irrevocably chosen and designated by the
Group from some non-trading equity instruments, the relevant dividend income shall be included in profit and loss for the current
period and changes in the fair value shall be recognized as other comprehensive income, until the financial assets are derecognized
when accumulative gains or losses shall be transferred to retained earnings.
(4) Financial assets measured at fair value through profit and loss for the current period
The aforementioned financial assets measured at amortized cost and financial assets other than those measured at fair value through
other comprehensive income are classified as financial assets measured at fair value through profit and loss for the current period. At
initial recognition, in order to eliminate or significantly reduce accounting mismatch, financial assets can be designated as financial
122
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
assets measured at fair value through profit or loss for the current period. Such financial assets shall be measured at fair value, and all
changes in fair value are included in the profit and loss for the current period.
When and only when the Group changes its business model of managing financial assets, all relevant financial assets affected will be
re-classified.
For financial assets measured at fair value through profit and loss for the current period, transaction costs are directly included in
profit and loss for the current period. For other types of financial assets, related transaction costs are included in their initial
recognized amounts.
3. Classification and measurement of financial liabilities
At initial recognition, the financial liabilities of the Group are classified into the following categories: Financial liabilities measured
at the amortized cost, and financial liabilities measured at fair value through profit and loss for the current period.
Financial liabilities can be designated as financial liabilities measured at fair value through profit or loss for the current period at
initial measurement if one of the following conditions is met: (1) The designation can eliminate or significantly reduce accounting
mismatch; (2) the management and performance evaluation of a portfolio of financial liabilities or a portfolio of financial assets and
financial liabilities are based on fair value in accordance with the Group's risk management or investment strategy as set out in a
formal written document, and are reported to key management personnel on this basis within the Group; (3) The financial liabilities
contain embedded derivatives require splitting.
The Group determines the classification of financial liabilities at initial recognition. For financial liabilities measured at fair value
through profit and loss for the current period, transaction costs are directly included in profit and loss for the current period. For other
types of financial liabilities, related transaction costs are included in their initial recognized amounts.
The subsequent measurement of financial liabilities depended on their categories:
(1) Financial liabilities measured at amortized cost
Such financial liabilities shall be subsequently measured at amortized cost using the effective interest method.
(2) Financial liabilities measured at fair value through profit and loss for the current period
Financial liabilities measured at fair value through profit or loss for the current period include trading financial liabilities (including
derivatives that are financial liabilities) and financial liabilities designated as at fair value through profit or loss at initial recognition.
4. Financial instrument offset
The net amount after financial assets and financial liabilities offset each other is reported in the balance sheet if both of the following
conditions are met: The Group had a currently enforceable legal right to offset the recognized amounts; the Group planned to settle
them on a net basis or to realize the financial assets and pay off the financial liabilities simultaneously.
5. Impairment of financial instrument
(1) Impairment measurement and accounting handling of financial instrument
Based on expected credit loss, the Company conducts impairment handling and confirms loss reserve for financial assets which is
measured by amortized cost, debt instrument investment which is measured by fair value and whose change is calculated into other
comprehensive profits, accounts receivable of rental, loan commitment which is beyond financial debt classified as the one which is
measured by fair value and whose change is calculated into current profits and losses, financial debt which does not belong to the one
which is measured by fair value and whose change is calculated into current profits or losses, or financial guarantee contract of
financial debt which is formed when it does not belong to financial asset transfer and doesn’t conform to confirmation condition of
termination or keeps on being involved in transferred financial asset.
Expected credit loss refers to weighted average of credit loss of financial instrument which takes the risk of contract breach
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
occurrence as the weight. Credit loss refers to the difference between all contract cash flow which is converted into cash according to
actual interest rate and receivable according to contract and all cash flow which to be charged as expected, i.e. current value of all
cash shortage. Among it, as for financial asset purchased or original which has had credit impairment, it should be converted into
cash according actual interest rate of this financial asset after credit adjustment.
As for financial asset purchased or original which has had credit impairment, the Company only confirms cumulative change of
expected credit loss within the whole duration after initial confirmation on the balance sheet date as loss reserve.
As for accounts receivable which don’t include major financing contents or the Company does not consider financing contents in
contract which is less than one year, the Company applies simplified measurement method, and measures loss reserve according to
amount of expected credit loss within the whole duration.
As for account receivable of rental and accounts receivable including major financing contents, the Company applies simplified
measurement method, and measure loss reserve according to amount of expected credit loss within the whole duration.
As for financial asset beyond above mentioned measurement methods, the Company evaluates whether its credit risk has increased
obviously since the initial confirmation on each balance sheet date. In case credit risk has increased obviously, the Company
measures the loss reserve according to amount of expected credit loss within the whole duration; in case the credit risk does not
increase obviously, the Company measures loss reserve according to the amount of expected credit loss in next 12 months.
By utilizing obtainable rational and well grounded information, including forward-looking information, comparing the risk of
contract breach on balance sheet date and risk of contract breach on initial confirmation date, the Company confirms whether the
credit risk of financial instrument has increased obviously from initial confirmation.
On balance sheet date, in case the Company judges that the financial instrument just has relatively low credit risk, then it will be
assumed that credit risk of the financial instrument has not increased obviously.
Based on single financial instrument or financial portfolio, the Company evaluates expected credit risk and measures expected credit
loss. When based on financial instrument portfolio, the Company takes common risk characteristics as the basis, and divides financial
instruments into different portfolios.
The Company measures expected credit loss again on each balance sheet date, the increase of loss reserve or amount which is
transfer back generated by it is calculated into current profits and losses as impairment profits or losses. As for financial asset which
is measured by amortized cost, loss reserve offsets the carrying value of the financial asset listed in the balance sheet; as for debt
investment which is measured by fair value and whose change is calculated into other comprehensive profits, the Company confirms
its loss reserve in other comprehensive profits and does not offset the carrying value of the financial asset.
(2) Financial instruments assessing expected credit risk by groups and measuring expected credit losses
Item Recognition basis Method of measuring expected credit losses
Other receivables-intercourse funds among Accounts nature Consulting historical experience in credit losses,
related party group within the consolidation combining actual situation and prediction for future
scope economic situation, the group’s expected credit loss
Other receivables-interest receivable group rate shall be accounted through exposure at default
and the expected credit loss rate within the next 12
Other receivables-other intercourse funds months or the entire life
among 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
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
rate shall be accounted through exposure at default
and the expected credit loss rate within the entire life
Accounts receivable-other intercourse funds Account nature Consulting historical experience in credit losses,
among related party group combining actual situation and prediction for future
economic situation, the group’s expected credit loss
rate shall be accounted through exposure at default
and the expected credit loss rate within the entire life
Accounts receivable-credit risk characteristics Aging group Prepare the comparative list between aging of
group accounts receivable and expected credit loss rate
over the entire life by consulting historical
experience in credit losses, combining actual
situation and prediction for future economic
situation
② Accounts receivable-the comparative list between aging of common customer group and expected credit loss rate over the entire
life
Aging Expected credit loss rate of accounts receivable (%)
Within 1 year (inclusive, the same below) 3.00
1 to 2 years 10.00
2 to 3 years 30.00
3 to 4 years 50.00
4 to 5 years 80.00
Over 5 years 100.00
6. Financial asset transfer
Financial assets are derecognized if the Group has transferred almost all the risks and rewards of its ownership transferred to the
transferor; financial assets are not derecognized if the Group has retained almost all the risks and rewards of its ownership.
If the Group has neither transferred nor retained almost all the risks and rewards of its ownership of the transferred financial assets, it
will be treated respectively according to the following circumstances: If the control over the financial assets is waived, relevant
financial assets shall be derecognized, and the assets and liabilities arising from them shall be recognized; if the control over the
financial assets is not waived, relevant financial assets shall be recognized based on the extent of continuing involvement with
transferred financial assets, and related liabilities shall be recognized accordingly.
If continuing involvement is provided by way of financial guarantee for the transferred financial assets, the assets resulting from the
continuing involvement are recognized at the lower of the carrying value of the financial assets and the financial guarantee amount.
The financial guarantee amount refers to the maximum amount of the consideration received that will be required to be repaid.
11. Notes Receivable
Refer to Note V 10 Financial Instruments of the financial statements for details.
12. Accounts Receivable
Refer to Note V 10 Financial Instruments of the financial statements for details.
13. Accounts Receivable Financing
Not applicable.
14. Other Receivables
Recognition and accounting treatment methods regarding expected credit losses of other receivables
Refer to Note V 10 Financial Instruments of the financial statements for details.
15. Inventory
(1) Inventories Classification
Inventories include development land held for sale or consumption in the process of development and operation, development
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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
16. Contract Assets
The Company presents contract assets or contract liabilities on the balance sheet according to the relationship between the fulfillment
of its contract performance obligations and its customers’ payment. Considerations that the Company has the right to collect for
commodities transferred or services provided to customers (except for accounts receivable) are presented as contract assets.
For contract assets that do not contain significant financing components, the Company uses the simplified model of expected credit
loss, measuring the loss provision according to an amount that is equivalent to the amount of expected credit loss of the entire
duration. The increased loss provision or reversed amount thereof shall be recorded into the current profit or loss as impairment
losses or gains.
For contract assets that contain significant financing components, the Company has made the accounting policy choice and selected
the simplified model of expected credit loss, measuring the loss provision according to an amount that is equivalent to the amount of
expected credit loss of the entire duration. The increased loss provision or reversed amount thereof shall be recorded into the current
profit or loss as impairment losses or gains.
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17. Contract Costs
Contract costs comprise contract performance cost and contract acquisition cost.
The cost incurred by the Company from performing a contract is recognized into an asset as contract performance cost when it meets
the following conditions:
This cost directly relates to an existing contract or a contract expected to be acquired. It consists of direct labor, direct materials,
manufacture costs (or similar costs), costs specified to be borne by the customer and other costs incurred from this contract solely.
This cost has increased the Company’s sources that are used to fulfill its contract performance obligations in the future.
This cost is expected to be recovered.
An incremental cost that is incurred by the Company for acquiring a contract and expected to be recovered is recognized into an asset
as contract acquisition cost. However, for such asset with an amortization period of less than one year, the Company recognizes them
into current profit/loss at their occurrence.
Assets related to contract costs are amortized on the same basis for recognizing the revenue from commodities or services related to
such assets.
When the carrying value of an asset related to contract costs is higher than the difference between the following two items, the
Company will withdraw impairment provision for the exceeded part and recognize it as asset impairment loss:
Residual consideration expected to be gained from transferring commodities and services related to this asset;
Costs expected to be incurred from transferring such commodities or services.
When the aforementioned asset impairment provision is reversed later, the carrying value of the asset after the reversal should not
exceed its carrying value on the reversal date under the assumption of no withdrawal of impairment provision.
18. Assets Held for Sale
The Company divides its components (or non-current assets) meeting the following conditions into available for sale assets: (1)
Assets can be sold immediately under the current conditions according to the practice of selling such assets or disposal groups in
similar transactions; (2) The sale is likely to occur, and a resolution has been made on a sale plan and a firm purchase commitment is
obtained (a firm purchase commitment refers to a legally binding purchase agreement signed between an enterprise and other parties,
which contains important terms such as transaction price, time and severe penalty for breach of contract to minimize the possibility
of major adjustment or cancellation of the agreement. The sale is expected to be completed within a year. It has been approved by
relevant authorities or regulatory authorities according to relevant regulations.
The Company adjusts the estimated net residual value of available for sale assets to the net amount of its fair value minus the selling
expenses (which shall not exceed the original book value of the assets available for sale). The difference between the original book
value and the adjusted estimated net residual value shall be included in the current profit and loss as the loss of asset impairment, and
provisions for impairment of assets available for sale shall be made. For the amount of impairment loss of disposal group available
for sale recognized, the book value of goodwill of the disposal group shall be offset first, and then the book value of disposal group
shall be offset in proportion according to the share of the book value of non-current assets in the disposal group measured according
to this Standard.
When the net amount of fair value of non-current assets available for sale minus the selling expenses increases on the subsequent
balance sheet date, the amount previously written down shall be restored and reversed within the amount of asset impairment loss
recognized after being classified as available for sale assets, and the reversed amount shall be included in the current profits and
losses. The impairment loss of assets recognized before being classified as available for sale assets shall not be reversed. When the
net amount of fair value of disposal group available for sale minus the selling expenses increases on the subsequent balance sheet
date, the amount previously written down shall be restored and reversed within the amount of asset impairment loss recognized as
non-current assets in the disposal group measured according to this Standard after being classified into the categories available for
sale assets, and the reversed amount shall be included in the current profits and losses. The book value of goodwill that has been
offset and the impairment loss of non-current assets measured according to this Standard shall not be reversed before they are
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classified as available for sale assets. The subsequent reversal amount of asset impairment loss recognized as disposal group
available for sale shall be increased in proportion to the share of the book value of non-current assets in the disposal group, except
goodwill, which are measured according to this Standard. In case that an enterprise loses its control over a subsidiary due to sale of
its investment in the subsidiary, the investment in the subsidiary to be sold shall be divided into the available for sale category in
individual financial statement of the parent company when the proposed investment in the subsidiary meets the conditions for
classification of available for sale category, and all assets and liabilities of the subsidiary shall be classified into available for sale
category in the consolidated financial statements, no matter whether the enterprise retains part of equity investment after the sale.
19. Investments in Debt Obligations
Not applicable.
20. Investments in other Debt Obligations
Not applicable.
21. Long-term Receivable
Refer to Note V-10. Financial Instrument for details.
22. Long-term Equity Investments
(1) Judgment of Joint Control and Significant Influences
The term "joint control" refers to the joint control over an arrangement in accordance with the related agreements, which does not
exist unless the participants sharing the control power agree with each other about the related arranged activity. The term "significant
influences" refers to the power to participate in making decisions on the financial and operating policies of an enterprise, but not to
control or do joint control together with other parties over the formulation of these policies.
(2) Recognition of Investment Cost
1) If the business combination is under the common control and the acquirer obtains long-term equity investment in the consideration
of cash, non-monetary asset exchange, bearing acquiree’s liabilities, or the issuance of equity securities, the initial cost is the carrying
amount of the proportion of the acquiree’s owner’s equity at the acquisition date. The difference between the initial cost of the long-
term equity investment and the carrying amount of the paid combination or the total amount of the issued shares should be adjusted
to capital surplus. If the capital surplus is not sufficient for adjustment, retained earnings are adjusted respectively.
When a long-term equity investment is formed from the business combination under common control through the Company’s
multiple transactions step by step, the treatment shall be carried out based on whether the transactions constitute the “package deal”.
If they do, the accounting treatment shall be carried out on the basis of assuming all transactions as one transaction with the
acquisition of control. If they do not, the initial investment cost shall be the portion of the carrying value of acquiree’s net assets
entitled in the consolidated financial statements of the final controller after the consolidation. The difference between the initial
investment cost of the long-term equity investment on the combination date and the carrying value of the investment before the
combination plus the carrying value of the newly-paid consideration for the acquisition of the shares on the consolidation date shall
be adjusted to capital reserve; if the capital reserve is insufficient for the adjustment, retained earnings should be adjusted accordingly.
2) For those formed from the business combination under different control, the initial investment cost is the fair value of the
combination consideration paid on the acquisition date.
When a long-term equity investment is formed from the business combination under different control through the Company’s
multiple transactions step by step, the accounting treatment shall be carried out based on whether the financial statements are
individual or consolidated:
① In individual financial statements, the initial investment cost accounted in cost method is the sum of the carrying value of the
equity investment originally held and the cost of new investment.
② In consolidate financial statements, judge whether the transactions constitute the “package deal”. If they do, the accounting
treatment shall be carried out on the basis of assuming all transactions as one transaction with the acquisition of control. If they do
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not, for the acquiree’s equity held before the acquisition date, re-measurement shall be carried out according to the fair value of the
equity on the acquisition date and the difference between the fair value and the carrying value shall be recorded into current
investment income; if the acquiree’s equity held before the acquisition date involves other comprehensive income accounted in
equity method, other comprehensive income related to it shall be transferred into the income for the period in which the acquisition
date falls, with the exception of the other comprehensive incomes occurred because of the changes of net liabilities or net assets of
the defined benefit pension plans be re-measured for setting by the investees.
③ For those formed other than from business combination: If they are acquired in cash payment, the initial investment cost is the
purchase price actually paid; if they are acquired in the issue of equity securities, the initial investment cost is the fair value of the
issued equity securities; if they are acquired in debt restructuring, the initial investment cost shall be recognized according to the
Accounting Standards for Enterprises No. 12 - Debt Restructuring; if they are acquired in the exchange of non-monetary assets, the
initial investment shall be recognized according to the Accounting Standards for Enterprises No. 7 - Exchange of Non-Monetary
Assets.
(3) Method of subsequent measurement and recognition of profits and losses
Long-term equity investment with control over investees shall be accounted in cost method; long-term equity investment on
associated enterprises and joint ventures shall be accounted in equity method.
(4) Method of treating the disposal of the investment in a subsidiary stem by step through multiple transactions until the loss
of the controlling right
1) Individual financial statements
For the disposed equity, the difference between its fair value and the actually obtained price shall be recorded into current profits or
losses. For the residual equity, the part that still has significant effects on investees or with common control jointly with other parties
shall be accounted in equity method; the part that has no more control, common control or significant effects on investees shall be
accounted in accordance with the relevant regulation of the Accounting Standards for Enterprises No. 22 - Recognition and
Measurement of Financial Instruments.
2) Consolidated financial statements
① For the disposal of the investment in subsidiaries step by step until the loss of the controlling right through multiple transactions,
which do not constitute the “package deal”
Before the loss of the controlling right, for the balance between the disposal remuneration and the shares of net assets in the
subsidiaries that have been calculated since the acquisition date or combination date corresponding to the disposal of long-term
equity investment, capital reserve (capital premium) shall be adjusted, and if the capital premium is not sufficient for the write-down,
the retained earnings shall be written down.
At the loss of the controlling right over the original subsidiaries, the residual equity shall be re-measured at its fair value on the date
of losing the controlling right. The difference between the consideration obtained in the equity disposal, plus the fair value of the
remaining equities, less the Company’s share of net assets enjoyed of the former subsidiary that has been calculated since the
acquisition date or combination date according to the former shareholding ratio, shall be recorded into the investment gains for the
period when the control ceases; meanwhile, goodwill shall be written down. Other comprehensive income related to former
subsidiary's equity investment shall be transferred into current investment income when the control ceases.
② For the disposal of the investment in subsidiaries step by step until the loss of the controlling right through multiple transactions,
which constitute the “package deal”
The accounting treatment shall be carried out on the basis of considering each transaction as a transaction of disposing the subsidiary
and losing control. However, before losing control, the difference between each disposal price before losing the control, and the
corresponding net assets share enjoyed of subsidiary when disposing long-term equity investment, shall be recognized as other
comprehensive income in the consolidated financial statements and when the control ceases, transferred into current profits or losses
of the period of losing control.
(5) Impairment test method and impairment provision method
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When there is objective evidence indicating impairment of the investment in subsidiaries, joint ventures and cooperative enterprises
on the balance sheet date, corresponding provision for impairment shall be made according to the difference between the book value
and recoverable amount.
23. Investment Property
Measurement mode of investment real estates
Measurement of cost method
Depreciation or amortization method
1. The term "investment real estate" includes the right to use any land which has already been rented, the right to use any land which
is held and prepared for transfer after appreciation, and the right to use any building which has already been rented.
2. The Company initially measures the investment property according to the costs, and adopts the cost method in the subsequent
measurement of investment property, and adopts the same methods with fixed assets and intangible assets to withdraw depreciation
or amortization. When there is any indication of impairment of investment property on the balance sheet date, corresponding
provision for impairment shall be made according to the difference between the book value and recoverable amount.
24. Fixed Assets
(1) Recognized Standard of Fixed Assets
The term "fixed assets" refers to the tangible assets that simultaneously possess the features as follows: they are held for the sake
of producing commodities, rendering labor service, renting or business management; and their useful life is in excess of one fiscal
year. No fixed asset may be recognized unless it simultaneously meets the conditions as follows: (1) The economic benefits are
likely to flow into the enterprise; (2) The cost of the fixed asset can be measured reliably.
(2) Depreciation Method
Expected net salvage
Category Depreciation method Useful life (year) Annual deprecation
value
Straight-line
Houses and buildings 20-25 5-10 3.6-4.75
depreciation
Straight-line
Transportation 5 5 19
depreciation
Straight-line
Other equipment 5 5 19
depreciation
Straight-line
Machinery equipment 5 5 19
depreciation
Decoration of fixed Straight-line
5 0 20
assets depreciation
(3) Recognition Basis, Pricing and Depreciation Method of Fixed Assets by Finance Lease
Not applicable.
25. Construction in Progress
1. No construction in progress may be recognized unless it simultaneously meets the conditions as follows: (1) The economic
benefits are likely to flow into the enterprise; (2) The cost of the fixed asset can be measured reliably. Construction in progress shall
be measured according to the occurred actual costs before the assets available for the intended use.
2. When the construction in progress is available for the intended use, it shall be transferred to fixed assets according to the actual
cost of the project. For construction in progress available for the intended use but not dealing with final accounts of completed
project, it shall be transferred to fixed assets according to the estimated value first, and then adjust original temporarily estimated
value based on the actual costs after the final accounts of completed project, but not adjust the depreciation that was already
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calculated.
26. Borrowing Costs
1. Recognition Principle of Capitalization of Borrowing Costs
Where the borrowing costs incurred to the Company can be directly attributable to the acquisition and construction or production of
assets eligible for capitalization, it shall be capitalized and recorded into the costs of relevant assets. Other borrowing costs shall be
recognized as expenses when it occurred, and shall be recorded into the current profits and losses.
2. Capitalization Period of Borrowings Costs
(1) The borrowing costs shall not be capitalized unless they simultaneously meet the following requirements: 1) The asset
disbursements have already incurred; 2) The borrowing costs have already incurred; 3) The acquisition and construction or
production activities which are necessary to prepare the asset for its intended use or sale have already started.
(2) Where the acquisition and construction or production of a qualified asset is interrupted abnormally and the interruption period
lasts for more than 3 months, the capitalization of the borrowing costs shall be suspended. The borrowing costs incurred during such
period shall be recognized as expenses, and shall be recorded into the profits and losses of the current period, till the acquisition and
construction or production of the asset restarts.
(3) When the acquisition and construction or production of a qualified asset eligible for capitalization are available for its intended
use or sale, the capitalization of borrowing costs shall be stopped.
3. Capitalized rate and amount of borrowing costs
To the extent that funds are borrowed specifically for the purpose of acquiring or constructing a qualifying asset, the amount of
borrowing costs eligible for capitalization on that asset is determined as the actual interest costs (including amortization of discount
and premium confirmed according to effective interest method) incurred on that borrowing during the period less any investment
income on the temporary investment of the borrowing. To the extent that funds are borrowed generally and used for the purpose of
acquiring or constructing a qualifying asset, the amount of borrowing costs eligible for capitalization shall be determined by applying
a capitalization rate to the weighted average of excess of accumulated expenditures on qualifying asset over that on specific purpose
borrowing.
27. Biological Assets
Not applicable.
28. Oil and Gas Assets
Not applicable.
29. Right-of-use Assets
On the start date of the lease term, the Group deems the right-of-use assets and lease obligations, except for the simplified short-term
lease and low-value leases.
The Group initially measures right-of-use assets at cost. The cost includes:
1. The initial measurement amount of the lease obligation.
2. If a lease incentive exists for lease payments made on or before the commencement date of the lease term, the amount related to
the lease incentive already taken is deducted.
3. Initial direct costs incurred.
4. Costs expected to be incurred by the Group for dismantling and removing the leased asset(s), restoring the premises where the
leased asset(s) is/are located, or restoring the leased asset(s) to the status agreed in the leasing clauses. If the aforementioned costs are
incurred for inventory production, relevant provisions of Accounting Standard for Business Enterprises No.1 - Inventory is applicable.
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The Group recognizes and measures the costs described in Item 4 above in accordance with relevant provisions of the Accounting
Standards for Business Enterprises No. 13 - Contingencies. The initial direct costs incurred refer to the incremental costs incurred to
achieve the lease. Incremental costs are costs that would not have been incurred had the business not acquired the lease.
The Group depreciates the right-of-use assets in accordance with relevant depreciation provisions of the Accounting Standards for
Business Enterprises No. 4 - Fixed Assets. If it is reasonably certain that the ownership of the leasehold property will be obtained at
the end of the lease term, the Group will depreciate the leasehold property over its remaining service life. If it is not reasonably
certain that the ownership of the leasehold property will be obtained at the end of the lease term, the Group will depreciate the leased
asset(s) over the lease term or the remaining service life, whichever is shorter.
The Group determines the impairment of the right-of-use assets and conducts accounting treatment of the impairment losses already
identified in accordance with relevant provisions of the Accounting Standards for Business Enterprises No. 8 - Asset Impairment.
30. Intangible Assets
(1) Pricing Method, Useful Life and Impairment Test
1. Intangible assets include right to use land sites, use right of software etc. and conduct the initial measurement according to the
costs.
2. With regard to intangible assets with limited service life, it shall be amortized systematically and reasonably within their service
life according to the expected implementation of economic interests related to the intangible assets. If it can’t recognize the expected
implementation reliably, it shall be amortized by straight-line method. The specific useful lives are as follows:
Items Useful life for amortization (years)
Use right of lands Statutory life of land use right
Use right of software 5
The intangible assets with uncertain service life shall not be amortized, and the Company rechecks the service life of the intangible
assets in every accounting period. For intangible assets with uncertain service, the recognition basis is without certain service life and
expected benefit life.
3. For intangible assets with definite service life, when there is any indication of impairment on the balance sheet date, corresponding
provision for impairment shall be made according to the difference between the book value and recoverable amount; for intangible
assets with uncertain service life and those not ready for service, impairment test shall be conducted every year no matter whether
there is any indication of impairment.
(2) Accounting Policies of Internal R&D Expenses
Not applicable.
31. Impairment of Long-term Assets
For long-term assets, such as long-term equity investment, investment property measured by cost model, fixed assets, construction in
progress, and intangible assets with limited service life, the Company shall estimate the recoverable amount if there are signs of
impairment on balance sheet date. For intangible assets with uncertain goodwill or service life formed by enterprise combination,
whether or not there is sign of impairment, impairment test shall be conducted every year. Goodwill combination and its related
assets group or combination of assets group shall be conducted the impairment test.
If the recoverable amount of the above-mentioned long-term assets is lower than its carrying value, it shall make the preparation for
assets impairment based on its balance and be recorded into current profits and losses.
32. Long-term Prepaid Expenses
Long-term deferred expenses refer to general expenses with the amortized period over one year (one year excluded) that have
occurred. 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.
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33. Contract Liabilities
The Company presents contract assets or contract liabilities on the balance sheet according to the relationship between the fulfillment
of its contract performance obligations and its customers’ payment. Obligations to be fulfilled by the Company of transferring
commodities or providing services to customers, as the Company has received or should receive customers’ considerations, are
presented as contract liabilities.
34. Payroll
(1) Accounting Treatment of Short-term Compensation
During the accounting period when the employees providing the service for the Company, the actual short-term compensation shall
be recognized as liabilities, and be recorded into the current profits and losses or related assets costs.
(2) Accounting Treatment of the Welfare after Demission
The Company's welfare after demission plans is divided into defined contribution plans and defined benefit plans (1) During the
accounting period when the employee providing service for the Company, the amount paid in line with the setting drawing plan will
be recognized as liabilities and recorded into current profits or losses or cost of relevant assets.
(2) The accounting treatment of defined benefit plans usually consists of the following steps:
1) According to the expected cumulative welfare unit method, adopt unbiased and mutually consistent actuarial assumptions to
evaluate related demographic variables and financial variables, measure the obligations generated from defined benefit plans and
recognize the period in respect of related obligations. Meanwhile, discount the obligations generated from defined benefit plans to
recognize their present value and the current service costs;
2) If there are any assets in a defined benefit plan, the deficit or surplus formed from the present value of the defined benefit plan
obligations less the fair value of the defined benefit plan assets shall be recognized as net liabilities or net assets of a defined benefit
plan. If there is any surplus in a defined benefit plan, the net assets of the plan shall be measured at the lower of the surplus or the
upper asset limit;
3) At the end of the period, the staff remuneration costs generated from a defined benefit plan shall be recognized as services costs,
net interests of the net liabilities or net assets of the plan and changes from the re-measurement of the net liabilities or net assets of
the plan. Service costs and net interests of the net liabilities or net assets of the plan shall be recorded into the current profits or losses
or related asset costs, while changes from the re-measurement of the net liabilities or net assets of the plan shall be recorded into
other comprehensive income and shall not be transferred back to profits or losses in subsequent accounting periods. But the amounts
recognized in other comprehensive income may be transferred within the equity scope.
(3) Accounting Treatment of Demission Welfare
When the Company is unable to unilaterally withdraw the plan on the cancellation of labor relationship or the layoff proposal, or
when recognizing the costs or expenses (the earlier one between the two) related to the reorganization of paying the demission
welfare, should recognize the payroll liabilities from the demission welfare and include in the current gains and losses.
(4) Accounting Treatment of Other Welfare of the Long-term Employees
The Company provides the other long-term employee benefits for the employees, and for those met with the defined contribution
plans, accounting treatment should be conducted according to the related regulations of the defined contribution plans; the for the
others long-term employee benefits except for the former, accounting treatment should be conducted according to the related
regulations of the defined benefit plans. In order to simplify the related accounting treatment, the payrolls shall be recognized as
service costs, the net amount of interest of net liabilities and net assets of other welfare of the long-term employees. The total net
amounts made up from the 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.
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35. Lease Liabilities
On the start date of the lease term, the Group deems the right-of-use assets and lease obligations, except for the simplified short-term
lease and low-value leases.
The Group initially measures the lease obligation at the present value of the lease payments outstanding at the commencement date of
the lease term.
The term "lease payments" refers to the payments made by the Group to the lessor in terms of the use of the leased asset(s) within the
lease term, including:
(1) fixed lease payments and substantial fixed lease payments (if a lease incentive exists, deduct the amount related to the lease
incentive);
(2) the variable lease payments that depend on indexation or ratio, which are determined according to the indexation or ratio on the
commencement date of the lease term in the initial measurement;
(3) the exercise price of the purchase option, when applicable, if the Group is reasonably certain that the option will be exercised;
(4) payments required to be made for exercising the option to terminate the lease if the lease term reflects that the Group will exercise
such an option;
(5) estimated amount payable based on the residual value of the guarantee provided by the Group.
When calculating the present value of lease payments, the Group uses the interest rate implicit in lease as the rate of discount. If the
interest rate implicit in lease cannot be determined, the Group’s incremental lending rate is used as the rate of discount.
36. Provisions
1. The obligation such as external guaranty, litigation or arbitration, product quality assurance, loss contract, pertinent to a
contingencies shall be recognized as the provisions when the following conditions are satisfied simultaneously: ① That obligation is
a current obligation of the enterprise; ② It is likely to cause any economic benefit to flow out of the enterprise as a result of
performance of the obligation; and ③ The amount of the obligation can be measured in a reliable way.
2. The Company shall conduct the initial measurement to provisions according to the best estimate number needed for performing the
related current obligation and recheck the carrying value of accrued liabilities on balance sheet date.
37. Share-based Payment
Not applicable.
38. Other Financial Instruments such as Preference Shares and Perpetual Bonds
Not applicable.
39. Revenue
The Accounting Policy Adopted for Recognition and Measurement of Revenue
1. Recognition of revenue
The Company gains revenue mainly from property sales, property management, sales of software and property leasing (refer to 42.
Leasing for more detail).
The Company recognizes revenue when it has fulfilled the obligation of contract performance, namely, when it has acquired the
control of the related commodity. The acquisition of control over a commodity refers to the capacity to control the use of the
commodity and to gain almost all economic interests thereof.
2. The Company judges whether a contract performance obligation is “a contract performance obligation fulfilled in a time
period” or “a contract performance obligation fulfilled at a time point” according to the terms in revenue standards, and
recognizes revenue according to the following principles.
(1) When the Company meets one of the following conditions, the obligation should be classified as a contract performance
obligation fulfilled in a specific time period:
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1) The customer gains and consumes the economic interests brought by the Company’s contract performance when the Company
performs the contract.
2) The customer is able to control the assets in progress during the Company’s contract performance.
3) The assets produced during the Company’s contract performance have irreplaceable use, and the Company has the right to collect
payment in respect of its completed contract performance accumulated as of now throughout the entire contract period.
For a contract performance obligation fulfilled in a time period, the Company recognizes revenue according to the progress towards
contract completion in that period, but excluding the case when such progress cannot be reasonably determined. The Company uses
the output or input method to determine the right progress towards contract completion by considering the nature of the commodity.
4) For one that is classified as a contract performance obligation fulfilled at a time point instead of in a time period, the Company
recognizes revenue when the customer acquires the control over the related commodity.
In judging whether the customer has acquired the control over a commodity, the Company considers the following signs:
1) The Company is entitled to the current right of payment collection in respect of the commodity. In other words, the customer has
the current obligation to pay for the commodity.
2) The Company has transferred the legal ownership of the commodity to the customer. In other words, the customer has owned the
legal ownership of the commodity.
3) The Company has transferred the physical commodity to the customer. In other words, the customer has taken physical possession
of the commodity.
4) The Company has transferred the major risks and remunerations in respect of the ownership of the commodity. In other words, the
customer has acquired the major risks and remunerations in respect of the ownership of the commodity.
5) The customer has accepted the commodity.
6) Other signs indicating that the customer has acquired control over the commodity.
Specific policies of the Company for recognizing revenue:
1) Real Estate Sales Contracts
The realization of sales revenue shall be recognized under the following conditions: the developed products have been completed and
accepted, the sales contract has been signed and the obligations stipulated in the contract have been fulfilled, the main risks and
rewards of ownership of the developed products have been transferred to the buyer at the same time, the Company shall no longer
retain the continuous management rights normally associated with ownership and effectively control the sold developed products, the
revenue amount can be measured reliably, the related economic benefits are likely to flow in, and the related costs that have occurred
or will occur can be measured reliably.
For the sale of self-occupied housing, the realization of sales income shall be recognized under the following conditions: the main
risks and rewards of ownership of self-occupied houses are transferred to the buyer, the Company will no longer retain the
continuous management rights normally associated with ownership and effectively control the sold development products, the
amount of income can be measured reliably, relevant economic benefits are likely to flow in, the relevant costs that have occurred or
will occur can be measured reliably.
Only recognizing the sales income realization under the following conditions: acquired the real estate completed and accepted as
qualified (the completion and acceptance reports), signed an irreversible sales contract, obtained the buyer's payment certificate (for
those who chose bank mortgage, the first installment and the full amount of bank mortgage must be required; for those who did not
choose the bank mortgage to make their payment, the full house payment must be required) issued the notice of repossession (if the
owner fails to go through the formalities in time within the specified time limit the building shall be deemed as repossessed).
2) Providing Labor Services
If the provision of labor services can be reliably estimated (all the following conditions are met: ① The amount of income can be
measured reliably; ②The relevant economic benefits are likely to inflow to the Company; ③ The progress of the transaction can be
reliably determined; ④ The cost incurred and to be incurred in the transaction can be measured reliably), it shall recognize the
revenue from providing services employing the percentage-of-completion method, and confirm the completion of labor service
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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.
5) Other Business Income
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
According to the stipulations of relevant contracts and agreements, when the economic benefits related to the transaction can flow
into the enterprise and the costs related to the income can be reliably measured, the realization of other business income shall be
confirmed.
3. Measurement of Revenue
The Company should measure revenue according to the transaction prices apportioned to each of the individual contract performance
obligations. In determining a transaction price, the Company considers the impact of a number of factors, including variable
consideration, significant financing components in contracts, non-cash consideration, and consideration payable to customers.
(1) Variable consideration
The Company determines the best estimate of variable consideration according to the expected value or the amount most likely to
occur. But a transaction price containing variable consideration should not exceed the amount from the accumulated recognized
revenue that will probably not have any significant reversal when related uncertainties are eliminated. When assessing whether the
significant reversal of accumulated recognized revenue is almost impossible or not, a company should concurrently consider the
possibility and weight of the revenue reversal.
(2) Significant financing component
When a contract contains any financing component, the Company should determine the transaction price according to the amount
payable that is assumed to be paid in cash by the customer when it acquires control over the commodity. The difference between the
transaction price and the contract consideration should be amortized in the effective interest method during the contract period.
(3) Non-cash consideration
When a customer pays non-cash consideration, the Company should determine the transaction price according to the fair value of the
non-cash consideration. When such fair value cannot be reasonably estimated, the Company will indirectly determine the transaction
price by reference to the individual price committed by the Company for transferring the commodity to the customer.
(4) Consideration payable to a customer
For consideration payable to a customer, the Company should deduct the transaction price from the consideration payable, and
deduct the revenue for the current period at either the recognition of related revenue or the payment (or committed payment) of the
consideration to the customer, whichever is earlier, but excluding the case in which the consideration payable to the customer is for
the purpose of acquiring from the customer other commodities that can be obviously distinguished.
If the Company’s consideration payable to a customer is for the purpose of acquiring from the customer other commodities that can
be obviously distinguished, the Company should confirm the commodity purchased in the same way as in its other purchases. When
the Company’s consideration payable to a customer exceeds the fair value of the commodity that can be obviously distinguished, the
exceeded amount should be used to deduct the transaction price. If the fair value of the commodity acquired from the customer that
can be obviously distinguished cannot be reasonably estimated, the Company should deduct the transaction price from the
consideration payable to the customer.
Differences in accounting policies for the recognition of revenue caused by different business models for the same type of business
Not applicable.
40. Government Grants
1. If the government subsidies meet with the following conditions at the same, it should be recognized: (1) The entity will
comply with the condition attaching to them; (2) The grants will be received from government. If a government subsidy is a
monetary asset, it shall be measured according to the amount received or receivable. If a government subsidy is a non-monetary asset,
it shall be measured at its fair value, and shall be measured at a nominal amount when the fair value cannot be obtained reliably.
2. Judgment basis and accounting methods of government subsidies related to assets
The government subsidies that are acquired for construction or form long-term assets in other ways according to government
documents shall be defined as asset-related government subsidies. For those not specified in government documents, the judgment
shall be made based on the compulsory fundamental conditions for acquiring the subsidies. If the subsidies are acquired with
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
construction or the formation of long-term assets in other ways as fundamental conditions, they shall be recognized as asset-related
government subsidies. For asset-related government subsidies, the carrying value of related assets shall be written down or
recognized as deferred income. If asset-related government subsidies are recognized as deferred income, it shall be recorded into
profits or losses by period in a reasonable and systemic manner within the life of related assets. Government subsidies measured at
the nominal amount shall be directly recorded into current profits or losses. If related assets are sold, transferred, disposed of or
destroyed before the end of their life, the undistributed balance of related deferred income shall be transferred into the profits or
losses for the period of the asset disposal.
3. Judgment basis and accounting treatment of profits-related government subsidies
Government subsidies other than asset-related government subsidies shall be defined as profits-related government subsidies. For
government subsidies consisting of both asset-related parts and profits-related parts, which are difficult to judge whether they are
related to assets or profits, the entirety shall be classified as profits-related government subsidies. Profits-related government
subsidies that are used to compensate the related future expenses or losses shall be recognized as deferred income and shall be
included into the current profit/losses during the period when the relevant expenses or losses are recognized; those subsidies used to
compensate the related expenses or losses incurred shall be directly included into the current profits/losses.
4. Government subsidies related to the Company’s routine operating activities shall be included into other income or write down
related costs according to the economic business nature. Government subsidies not related to the Company’s routine activities shall
be included into non-operating income and expenditure.
41. Deferred Income Tax Assets/Deferred Income Tax Liabilities
1. In accordance with the balance (the item not recognized as assets and liabilities can confirm their tax bases according to the tax law,
the balance between the tax bases and its carrying amount) between the carrying amount of assets or liabilities and their tax bases,
deferred tax assets and deferred tax liabilities should be recognized at the tax rates that are expected to apply to the period when the
asset is realized or the liability is settled.
2. A deferred tax asset shall be recognized within the limit of taxable income that is likely to be obtained to offset the deductible
temporary differences. At the balance sheet date, where there is strong evidence showing that sufficient taxable profit will be
available against which the deductible temporary difference can be utilized, the deferred tax asset unrecognized in prior period shall
be recognized.
3. The Company assesses the carrying amount of deferred tax asset at the balance sheet date. If it’s probable that sufficient taxable
profit will not be available against which the deductible temporary difference can be utilized, the Company shall write down the
carrying amount of deferred tax asset, or reverse the amount written down later when it’s probable that sufficient taxable profit will
be available.
4. The current income tax and deferred income tax of the Company are recorded into the current gains and losses as income tax
expenses or revenue, except in the following circumstances: (1) Business combination; (2) The transaction or event directly included
in owner’ equity.
42. Lease
(1) Accounting Treatment of Operating Lease
1. Lessee
The Group shall, when as the lessee, on the commencement date of the lease term, recognize the right-of-use assets and lease
obligations for the lease, unless it is a simplified short-term lease or low-value asset lease.
After the commencement date of the lease term, the Group uses the cost model for subsequent measurement of right-of-use assets.
The Group depreciates the right-of-use assets in accordance with relevant depreciation provisions of the Accounting Standards for
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Business Enterprises No. 4 - Fixed Assets. If the lessee can reasonably ascertain that the ownership of the leasehold property will be
obtained at the end of the lease term, it shall depreciate the leasehold property over its remaining service life. If it is not reasonably
certain that the ownership of the leasehold property will be obtained at the end of the lease term, it shall depreciate the leased asset(s)
over the lease term or the remaining service life, whichever is shorter. The Group will determine the impairment of the right-of-use
assets and conduct accounting treatment of the impairment losses already identified in accordance with relevant provisions of the
Accounting Standards for Business Enterprises No. 8 - Asset Impairment.
The Group calculates the interest expenses of the lease obligations during each period of the lease term at a fixed periodic interest
rate, and includes them in profit or loss for the current period. Where the Accounting Standards for Business Enterprises No. 17 -
Borrowing Costs and other standards provide that such interest expenses shall be included in the cost of related assets, such
provisions shall be observed.
The Group does not recognize the right-of-use assets and lease liabilities for short-term leases and low-value asset leases. In each
period within the lease term, the relevant lease payments for short-term leases and low-value asset leases are included in cost of the
related assets or profit or loss for the current period on a straight-line basis.
2. Lessor
In the case of the Group is the lessor, it recognizes the receipts of the operating lease incurred during each period of the lease term as
rentals by the straight-line method. The Group capitalizes the initial direct costs related to the operating lease upon incurrence thereof
and, within the lease term, apportions and includes such costs in the current profit or loss on the basis same as the recognition of
rentals.
For the fixed assets in the assets under operating lease, the Group shall adopt the depreciation policy of similar assets to calculate and
distill depreciation. For other assets under operating lease, the Group shall amortize them in a systematic and reasonable manner in
accordance with the accounting standards for enterprises applicable to the assets. The Group will determine the impairment of assets
under operating lease and conduct accounting treatment in accordance with relevant provisions of the Accounting Standards for
Business Enterprises No. 8 - Asset Impairment.
(2) Accounting Treatments of Financial Lease
The Group shall, when as the lessor, on the commencement date of the lease term, recognize the finance lease receivables for the
finance lease and derecognize the leased asset(s) of the finance lease. The Group shall also calculate and confirm the interest income
at a fixed periodic interest rate in each period in the lease term.
43. Other Important Accounting Policies and Accounting Estimations
1. Confirmation standard and accounting handling method for operation termination
Components which meet one of the following conditions, have been disposed or divided as held for sale category and can be
distinguished separately are confirmed as operation termination.
1) The component represents one important independent main business or one single main operation area.
2) The component is one part of a related plan which plans to dispose one independent main business or one single main operation
area.
3) The component is a subsidiary which is obtained for resale specially.
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44. Changes in Main Accounting Policies and Estimates
(1) Change of Accounting Policies
□Applicable Not applicable
(2) Changes in Accounting Estimates
□Applicable Not applicable
45. Other
In the Note of the financial statements, the data of the period-beginning refers to the financial statement data on 1 January 2022;
the data of the period-end refers to the financial statement data on 31 December 2022; the Reporting Period refers to the 2022; the
same period of last year refers to the 2021. The same to the Company as the parent.
VI Taxes
1. Main Taxes and Tax Rates
Category of taxes Tax basis Tax rate
Sales of goods or provision of taxable
VAT Note 1
services
Applied to 7%, 5%, 1% separately
Urban maintenance and construction tax Turnover tax payable
according to the regional level
Enterprise income tax Taxable income 25%、20%、15%、16.5%
Added value generated from paid
transfer of the use right of state-owned
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 Guomao Catering Co., Ltd. 20%
Shenzhen Property Engineering and Construction Supervision
20%
Co., Ltd.
Shenzhen Julian Human Resources Development Co.,Ltd. 20%
Shenzhen Huazhengpeng Property Management Development
20%
Co., Ltd.
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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 Tianque Elevator Technology Co., Ltd. 20%
Shenzhen Guoguan Electromechanical Device Co., Ltd. 20%
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 International Trade Industry Space Service 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.
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 2022.
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
As per the "Announcement on the Implementation of Tax Preferential Policies for Small and Micro Enterprises and Individual
Industrial and Commercial Taxpayers" (Announcement No. 12 of 2021 of the Ministry of Finance and the State Taxation
Administration) and the "Announcement of the State Taxation Administration on Matters Related to Implementing the Preferential
Income Tax Policy to Support the Development of Small and Micro Enterprises and Individual Industrial and Commercial
Taxpayers" (Announcement No. 8 of 2021 of the State Taxation Administration), for small and micro-profit enterprises, if their
annual taxable income does not exceed RMB1 million from 1 January 2021 to 31 December 2022, the taxable income will be
reduced by 12.5%, and the enterprise income tax rate will be 20%. Furthermore, as per the "Announcement 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%. This policy applies to 30 subsidiaries, including Shenzhen
Guomao Catering Co., Ltd. (Guomao Catering) and Shenzhen Property Engineering and Construction Supervision 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 43,833.00 122,823.16
Bank deposits 1,512,202,363.19 1,906,868,484.28
Other monetary funds 5,282,697.64 373,830,134.67
Total 1,517,528,893.83 2,280,821,442.11
Of which: total amount deposited
66,436,595.66 64,351,098.39
overseas
Total amount of restriction in use by
7,835,036.35 373,079,206.86
guaranteed, pledged or frozen
Other notes:
Among other monetary assets, the funds with limited use rights mainly include the margin and interest of RMB1,780,754.70; the
funds with limited use rights in bank deposits mainly include the bank frozen funds of RMB42,781.65 and the interest on time
deposits of RMB2,860,000.00, plus the balance of the bank margin account of RMB3,151,500.00. The above amount is not
regarded as cash and cash equivalents due to restrictions on use.
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
2. Trading Financial Assets
Unit: RMB
Item Ending balance Beginning balance
Of which:
Of which:
Other notes:
3. Derivative Financial Assets
Unit: RMB
Item Ending balance Beginning balance
Other notes:
4. Notes Receivable
(1) Notes Receivable Listed by Category
Unit: RMB
Item Ending balance Beginning balance
Bank acceptance bill 200,000.00
Total 200,000.00
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Category Carrying Carrying
Withdrawal value Withdrawal value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Notes
receivable
for which
bad debt 200,000.00 100.00% 200,000.00
provision
separately
accrued
Of which:
Of which:
Total 200,000.00 100.00% 200,000.00
Please refer to the relevant information of disclosure of bad debt provision of other accounts receivable if adopting the general
mode of expected credit loss to withdraw bad debt provision of notes receivable.
□Applicable Not applicable
(2) Bad Debt Provision Withdrawal, Reversed or Recovered in the 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
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
(3) Notes Receivable Pledged by the Company at the Period-end
Unit: RMB
Item Ending pledged amount
(4) Notes Receivable which Had Endorsed by the Company or had Discounted and had not Due on the
Balance Sheet Date at the Period-end
Unit: RMB
Amount of recognition termination at the Amount of not terminated recognition at
Item
period-end the period-end
(5) Notes Transferred to Accounts Receivable because Drawer of the Notes Failed to Execute the Contract
or Agreement
Unit: RMB
Amount of the notes transferred to accounts receivable at the
Item
period-end
Other notes:
(6) Notes Receivable with Actual Verification for the Current Period
Unit: RMB
Item Written-off amount
Of which, verification of significant notes receivable:
Unit: RMB
Verification Whether occurred
Written-off Reason for
Name of the entity Nature procedures because of related-
amount verification
performed party transactions
Notes of the verification of notes receivable
5. Accounts Receivable
(1) Listed by Category
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Category Carrying Carrying
Withdrawal value Withdrawal value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Accounts
receivable
withdrawal
111,808,371 109,689,294 2,119,076.6 109,683,529 108,118,031 1,565,497.9
of bad debt 20.01% 98.10% 25.93% 98.57%
.14 .54 0 .63 .66 7
provision
separately
accrued
Of which:
Accounts
receivable
withdrawal 447,078,385 29,263,546. 417,814,838 313,253,344 20,833,702. 292,419,641
79.99% 6.55% 74.07% 6.65%
of bad debt .18 48 .70 .07 11 .96
provision of
by group
Of which:
558,886,756 138,952,841 419,933,915 422,936,873 128,951,733 293,985,139
Total 100.00% 24.86% 100.00% 30.49%
.32 .02 .30 .70 .77 .93
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Bad debt provision separately accrued: RMB109,689,294.54
Unit: RMB
Ending balance
Name
Withdrawal
Carrying amount Bad debt provision Reason for withdraw
proportion
Shenzhen Jiyong Properties
Involved in lawsuit and
& Resources Development 93,811,328.05 93,811,328.05 100.00%
unrecoverable
Company
Shenzhen Tewei Industry Expected to be
2,836,561.00 2,836,561.00 100.00%
Co., Ltd. unrecoverable
Expected to be
Lunan Industry Corporation 2,818,284.84 2,818,284.84 100.00%
unrecoverable
Shenzhen Hampoo Science Expected to be
1,436,020.29 1,433,070.29 99.79%
& Technology Co., Ltd. unrecoverable
Those with insignificant
single amount for which Uncollectible for a long
10,906,176.96 8,790,050.36 80.60%
bad debt provision period
separately accrued
Total 111,808,371.14 109,689,294.54
Bad debt provision accrued by item:
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion Reason for withdraw
Bad debt provision accrued by item:
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion Reason for withdraw
Bad debt provision accrued by item:
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion Reason for withdraw
Bad debt provision accrued by item:
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion Reason for withdraw
Withdrawal of bad debt provision by group: RMB29,263,546.48
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Portfolio of credit risk
211,445,244.12 21,569,742.26 10.20%
features
Portfolio of transactions with
235,633,141.06 7,693,804.22 3.27%
other related parties
Total 447,078,385.18 29,263,546.48
Notes to the determination basis for the group:
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Bad debt provision accrued by portfolio:
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Notes to the determination basis for the group:
Please refer to the relevant information of disclosure of bad debt provision of other accounts receivable if adopting the general
mode of expected credit loss to withdraw bad debt provision of accounts receivable.
□Applicable Not applicable
Disclosure by aging
Unit: RMB
Aging Carrying amount
Within 1 year (including 1 year) 394,914,334.75
1 to 2 years 31,016,372.76
2 to 3 years 12,333,910.99
Over 3 years 120,622,137.82
3 to 4 years 6,141,296.85
4 to 5 years 4,392,591.92
Over 5 years 110,088,249.05
Total 558,886,756.32
(2) 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 108,118,031.66 1,571,262.88 109,689,294.54
accrued by item
Withdrawal of
bad debt
20,833,702.11 8,440,902.17 11,057.80 29,263,546.48
provision by
group
Total 128,951,733.77 10,012,165.05 11,057.80 138,952,841.02
Of which significant amount of recovered or transferred-back bad debt provision for the current period:
Unit: RMB
Name of the entity Amount reversed or recovered Way of recovery
(3) Accounts Receivable Written-off in Current Period
Unit: RMB
Item Written-off amount
Of which the verification of significant accounts receivable:
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Unit: RMB
Verification Whether occurred
Written-off Reason for
Name of the entity Nature procedures because of related-
amount verification
performed party transactions
Notes to verification of accounts receivable:
(4) Top 5 of the Ending Balance of the Accounts Receivable Collected according to Arrears Party
Unit: RMB
Proportion to total
Ending balance of bad
Name of the entity Ending balance ending balance of
debt provision
accounts receivable
Shenzhen Bay Technology Development Co., Ltd. 131,203,332.93 23.48% 3,936,099.99
Shenzhen Jiyong Properties & Resources Development
93,811,328.05 16.79% 93,811,328.05
Company
Shenzhen Bay Area International Hotel Co., Ltd. 51,312,666.65 9.18% 1,539,380.00
Hebei Shenbao Investment Development Co., Ltd. 15,856,697.13 2.84% 475,700.91
ShenZhen Special Economic Zone Real Estate &
10,072,563.13 1.80% 674,112.86
Properties (Group) Co., Ltd.
Total 302,256,587.89 54.09%
(5) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement
of Accounts Receivable
Other notes:
(6) Accounts Receivable Derecognized due to the Transfer of Financial Assets
6. Accounts Receivable Financing
Unit: RMB
Item Ending balance Beginning balance
The changes of accounts receivable financing in the Current Period and the changes in fair value
□Applicable Not applicable
Please refer to the relevant information of disclosure of bad debt provision of other accounts receivable if adopting the general
mode of expected credit loss to withdraw bad debt provision of accounts receivable financing.
□Applicable Not applicable
Other notes:
7. Prepayment
(1) Prepayment Listed by Aging Analysis
Unit: RMB
Aging Ending balance Beginning balance
147
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Amount Proportion Amount Proportion
Within 1 year 98,477,532.46 98.14% 24,618,321.77 34.68%
1 to 2 years 1,652,279.14 1.65% 25,907,661.19 36.50%
2 to 3 years 1,438.19 0.00% 499,638.55 0.70%
Over 3 years 210,556.77 0.21% 19,953,402.48 28.11%
Total 100,341,806.56 70,979,023.99
Notes of the reasons of the prepayment aging over 1 year with significant amount but failed settled in time:
(2) Top 5 Prepayment in Ending Balance Collected according to the Prepayment Target
As % of the total ending balance
Name of the entity Carrying amount
of the prepayments (%)
Natural Resources and Planning Bureau of
53,587,710.00 53.41
Yangzhou City
The Yangzhou Municipal Bureau of Finance 36,000,000.00 35.88
Beijing Jingdong Century Information Technology
1,887,916.50 1.88
Co., Ltd.
Chongqing Yudi Assets Management Co., Ltd. 1,869,630.00 1.86
China State Construction & Engineering 4th
818,177.48 0.82
Bureau 5th Corp Limited
Total 94,163,433.98 93.84
Other notes:
8. Other Receivables
Unit: RMB
Item Ending balance Beginning balance
Other receivables 639,903,523.33 926,361,533.14
Total 639,903,523.33 926,361,533.14
(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:
148
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
3) Withdrawal of Bad Debt Provision
□Applicable Not applicable
(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) Withdrawal of Bad Debt Provision
□Applicable Not applicable
Other notes:
(3) Other Receivables
1) Category of Other Receivables by Account Nature
Unit: RMB
Nature Ending carrying amount Beginning carrying amount
Security deposit 14,333,480.59 15,080,675.80
Margin 33,052,554.40 44,541,666.67
Reserve fund 315,131.82 414,042.10
Payment on behalf 7,861,406.33 9,613,270.01
Intercourse funds 645,712,452.33 823,874,343.35
Centralized management receivables 88,988,669.52
Others 26,868,828.99 24,696,812.94
Total 728,143,854.46 1,007,209,480.39
2) Withdrawal of Bad Debt Provision
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,
51,328,567.96 29,519,379.29 80,847,947.25
2022,
Balance of 1 January
2022 in the current
period
Withdrawal of the
7,117,248.24 275,135.64 7,392,383.88
current period
Balance as at 31
58,445,816.20 29,794,514.93 88,240,331.13
December 2022
Changes of carrying amount with significant amount changed of loss provision in the current period
149
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
□Applicable Not applicable
Disclosure by aging
Unit: RMB
Aging Carrying amount
Within 1 year (including 1 year) 45,898,989.35
1 to 2 years 582,305,977.29
2 to 3 years 32,848,373.42
Over 3 years 67,090,514.40
3 to 4 years 1,460,635.19
4 to 5 years 1,563,169.64
Over 5 years 64,066,709.57
Total 728,143,854.46
3) 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 Ending balance
balance Reversed or
Withdrawal Verification Others
recovered
Bad debt provision
46,215,164.01 876,420.17 47,091,584.18
accrued by item
Withdrawal of bad
debt provision by 34,632,783.24 6,515,963.71 41,148,746.95
group
Total 80,847,947.25 7,392,383.88 88,240,331.13
Of which the bad debt provision recovered or transferred-back with significant amount during the current period:
Unit: RMB
Name of the entity Amount reversed or recovered Way of recovery
4) 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
Written-off Reason for
Name of the entity Nature procedures because of related-
amount verification
performed party transactions
Notes to the verification of other receivables:
5) Top 5 of the Ending Balance of Other Receivables Collected according to the Arrears Party
Unit: RMB
Proportion to total Ending balance of
Name of the entity Nature Ending balance Aging ending balance of bad debt provision
other
150
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
receivables %
Shenzhen Xinhai
Holding Co., Ltd.
and the related
party Shenzhen Within 1 year, one
Intercourse funds 576,568,974.73 79.17% 17,297,069.25
Xinhai Rongyao to five years
Real Estate
Development Co.,
Ltd.
Shenzhen
Bangling Stock
Intercourse funds 30,000,000.00 Two to three years 4.12% 9,000,000.00
Cooperative
Company
Yangzhou
Hanjiang Taxation Intercourse funds 13,136,828.79 Within 1 year 1.80% 394,104.86
Bureau
Shenzhen Qianhai
Advanced Within 1 year, one
Intercourse funds 10,720,575.27 1.47% 321,617.26
Information to two years
Service Co., Ltd.
Total 630,426,378.79 86.56% 27,012,791.37
6) Accounts Receivable Involving Government Subsidies
Unit: RMB
Project of government Estimated recovering
Name of the entity Ending balance Ending aging
subsidies time, amount and basis
7) Derecognition of Other Receivables due to the Transfer of Financial Assets
8) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement
of Other Receivables
Other notes:
9. Inventories
Whether the Company needs to comply with the disclosure requirements for the real estate industry
Yes
(1) Category of Inventory
The Company shall comply with the disclosure requirements for the real estate industry in the Self-regulatory Guidelines No. 3 for
Companies Listed on Shenzhen Stock Exchange - Industry Information Disclosure.
Classification by nature:
Unit: RMB
Ending balance Beginning balance
Depreciation Depreciation
Item reserves of reserves of
Carrying inventories or Carrying inventories or
Carrying value Carrying value
amount impairment amount impairment
provision for provision for
contract contract
151
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
performance performance
costs costs
10,778,950,699 10,772,302,295 8,720,133,125. 8,713,484,721.
R&D expenses 6,648,404.13 6,648,404.13
.23 .10 46 33
Developing
199,674,693.59 199,674,693.59 409,687,436.41 409,687,436.41
properties
Contract
performance 1,965,933.85 1,965,933.85
costs
Raw materials 1,891,354.81 1,040,612.30 850,742.51 2,082,008.73 752,182.07 1,329,826.66
Inventory
2,536,973.19 2,094,300.39 442,672.80 2,600,344.84 2,094,300.39 506,044.45
goods
Low-value
97,885.52 97,885.52 126,033.42 126,033.42
consumables
10,985,117,540. 10,975,334,223 9,134,628,948. 9,125,134,062.
Total 9,783,316.82 9,494,886.59
19 .37 86 27
Disclose main items of “R&D expenses” and interest capitalization in the following format:
Unit: RMB
Transferred Of which:
Increase
to Other Accumulat amount of
(R&D
Time for Estimated Estimated developing decreased ed amount capitalized
Project Beginning expenses) Ending Capital
commence date of total properties amount for of interest interests
name balance for the balance resources
ment completion investment for the the current capitalizati for the
current
current period on current
period
period period
Guanlan 10 6,941,500, 3,805,312,
7 January 880,889,95 4,686,202, 238,303,50 123,432,82
Bangling September Bank loans
2021 000.00 202.35 0.18 152.53 9.98 6.55
project 2029
SZPRD-
Banshan 15 March 12 January 247,000,00 196,197,52 216,122,60 19,925,083
Others
Yujing 2019 2022 0.00 5.93 9.92 .99
Phase II
SZPRD-
Fuchang
27 911,330,00 677,368,07
Garden 30 June 69,919,499 747,287,57
December Others
Phase II 2023 0.00 2.10 .84 1.94
2018
(Fuhui
Huayuan)
Humen 3,211
coastal 22 March 30 April .739, 2,133,826, 227,741,76 2,361,567,
Others
Harbor 2022 2024 300.0 142.11 8.82 910.93
project
0
Guangmin
g Yutang 7 March 21 October 2,588,185, 1,621,000, 171,278,78 1,792,278,
Others
Shangfu 2022 2024 600.00 000.00 2.42 782.42
Project
Yupinluans
han Garden
(A117-12
land
232,030,74 4,402,759. 236,433,50
commercia Others
6.62 02 5.64
l and
residential
constructio
n project)
Haikou
6,648,404. 6,648,404.
Hongqi Others
13 13
Town Land
Shenhui 37,002,030 37,256,048
254,017.27 Others
Garden .89 .16
Fuyuantai 9,127,089. 3,627,248. 12,754,337
Others
Project 11 54 .65
152
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Project of
Slender
West Lake 3,774,790,
6 March 31 August 863,966,30 863,966,30
ecological Others
2023 2026 000.00 4.45 4.45
health
valley in
Yangzhou
1,620,912. 32,934,769 34,555,681
Others Others
22 .16 .38
14,328,176 8,720,133, 216,122,60 2,274,940, 10,778,950 238,303,50 123,432,82
Total -- -- 0.00 --
,400.00 125.46 9.92 183.69 ,699.23 9.98 6.55
Disclose main items of “Developing properties” in the following format:
Unit: RMB
Of which:
Accumulated
Decrease for amount of
Time of Beginning Increase for the amount of
Project name the current Ending balance capitalized
completion balance current period interest
period interests for the
capitalization
current period
SZPRD-
1 December
Langqiao 3,447,316.75 3,447,316.75 83,077,702.96
2012
International
SZPRD-Hupan
1 June 2015 57,356,637.66 541,547.38 56,815,090.28
Yujing Phase I
SZPRD-
12 January
Banshan Yujing 221,291,899.45 217,684,502.39 3,607,397.06 10,446,911.43
2022
Phase II
SZPRD-
Songhu 1 July 2017 24,505,635.91 305,308.44 24,200,327.47 27,205,315.95
Langyuan
SZPRD-Hupan 1 November
45,306,202.60 14,788,389.37 30,517,813.23 30,539,392.65
Yujing Phase II 2017
SZPRD-
1 December
Golden 270,245,459.13 1,569,890.15 199,554,784.84 72,260,564.44
2019
Collar’s Resort
International
1 December
Trade Center 4,839,083.10 4,839,083.10 26,385,636.29
1995
Plaza
Huangyuyuan
1 June 2001 790,140.58 790,140.58
A Area
Podium
Building of 1 November
645,532.65 645,532.65
Fuchang 1999
Building
Other items 2,551,428.03 2,551,428.03
Total -- 409,687,436.41 222,861,789.60 432,874,532.42 199,674,693.59 177,654,959.28
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
Project name Beginning balance Ending balance
period current 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
153
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Increased amount of the Decreased amount for the
current period current period
Beginning Ending
Item Transferred- Notes
balance balance
Withdrawal Others back or Others
charged-off
R&D
6,648,404.13 6,648,404.13
expenses
Raw
752,182.07 528,430.23 240,000.00 1,040,612.30
materials
Inventory
2,094,300.39 2,094,300.39
goods
Total 9,494,886.59 528,430.23 240,000.00 9,783,316.82
Classification by nature:
Unit: RMB
Increased amount of the Decreased amount for the
current period current period
Beginning Ending
Project name Transferred- Notes
balance balance
Withdrawal Others back or Others
charged-off
Haikou Hongqi
Town Land
6,648,404.13 6,648,404.13
Total 6,648,404.13 6,648,404.13
(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
1,115,856.40 774,175.34 341,681.06
Resort
Guanlan Bangling
114,870,683.43 123,432,826.55 238,303,509.98
Project
SZPRD-Langqiao
2,971,986.54 2,971,986.54
International
SZPRD-Hupan Yujing
1,292,469.40 42,953.98 1,249,515.42
Phase I
Total 120,250,995.77 123,432,826.55 817,129.32 242,866,693.00
(4) Inventory Restrictions
Disclosing restricted inventory by project:
Unit: RMB
Project name Beginning balance Ending balance Reason for restriction
10. Contract Assets
Unit: RMB
Ending balance Beginning balance
Item
Carrying Impairment Carrying Impairment
Carrying value Carrying value
amount provision amount provision
Municipal
engineering 1,094,632.90 1,094,632.90
retention money
154
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Total 1,094,632.90 1,094,632.90
Amount of significant changes in carrying value of contract assets in the Current Period and reasons thereof:
Unit: RMB
Item Change in amount Reason(s)
If the bad debt provision for contract assets in accordance with the general model of expected credit losses, the information related
to the bad debt provision shall be disclosed by reference to the disclosure method of other receivables:
□Applicable Not applicable
Withdrawal of impairment provision for contract assets in the Current Period:
Unit: RMB
Amount transferred-
Withdrawal of the Write-off/verified for
Item back for the current Reason
current period the current period
period
Other notes:
11. Held-for-sale Assets
Unit: RMB
Ending Ending Estimated
Impairment Estimated
Item carrying carrying Fair value disposal
provision disposal time
amount amount expense
Other notes:
12. Current Portion of Non-current Assets
Unit: RMB
Item Ending balance Beginning balance
Significant investments in debt obligations /other investments in debt obligations
Unit: RMB
Ending balance Beginning balance
Item Coupon Actual Maturity Coupon Actual Maturity
Par value Par value
rate interest rate date rate interest rate date
Other notes:
13. Other Current Assets
Unit: RMB
Item Ending balance Beginning balance
Prepaid VAT 16,846,758.27 13,510,039.34
Deducted input tax 28,950,002.85 11,848,968.49
Prepaid income tax 1,436,395.15 85,107.14
Prepaid land VAT 16,438,505.72 30,741,415.30
Prepaid urban construction tax 1,156,118.20 1,423,246.18
Prepaid education surcharge 825,798.74 1,029,901.67
155
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Immediate rebate of receivable software
1,687.34 358,306.69
sales VAT
Total 65,655,266.27 58,996,984.81
Other notes:
14. Investments in Debt Obligations
Unit: RMB
Ending balance Beginning balance
Item Carrying Impairment Carrying Impairment
Carrying value Carrying value
amount provision amount provision
Significant investments in debt obligations
Unit: RMB
Ending balance Beginning balance
Item Coupon Actual Maturity Coupon Actual Maturity
Par value Par value
rate interest rate date rate interest rate date
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
2022 in the current
period
Changes of carrying amount with significant amount changed of loss provision in the current period
□Applicable Not applicable
Other notes:
15. Other Investments in Debt Obligations
Unit: RMB
Accumulat
ed
Change in provision
Accumulat
fair value for losses
Beginning Accrued Ending ed changes
Item in the Cost recognized Notes
balance interest balance in fair
reporting in other
value
period comprehen
sive
income
Significant other investments in debt obligations
Unit: RMB
Ending balance Beginning balance
Item Coupon Actual Maturity Coupon Actual Maturity
Par value Par value
rate interest rate date rate interest rate date
Status of accrued depreciation reserves
Unit: RMB
156
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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
2022 in the current
period
Changes of carrying amount with significant amount changed of loss provision in the current period
□Applicable Not applicable
Other notes:
16. Long-term Receivables
(1) List of Long-term Receivables
Unit: RMB
Ending balance Beginning balance Interval of
Item discount
Carrying Bad debt Carrying Bad debt Carrying
Carrying value rate
amount provision amount provision value
Financing
lease 22,651,454.07 22,651,454.07 23,831,889.11 23,831,889.11
accounts
Of which:
unrealized
13,169,492.65 13,169,492.65 16,430,753.09 16,430,753.09
financing
income
Total 22,651,454.07 22,651,454.07 23,831,889.11 23,831,889.11
Impairment of bad debt provision
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
2022 in the current
period
Changes of carrying amount with significant amount changed of loss provision in the current period
□Applicable Not applicable
(2) Derecognition of Long-term Receivables due to the Transfer of Financial Assets
(3) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement
of Long-term Receivables
Other notes:
157
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
17. Long-term Equity Investment
Unit: RMB
Increase/decrease for the current period
Ending
Beginning Gains and Withdra Ending balance
Adjustmen Cash
balance losses wal of balance of
Investee Reduced t of other Changes bonus or
(carrying Additional recognized impairm
investme comprehe of other profits Others (Carrying depreciati
value) investment nt
under the
nsive equity announced
ent Value) on
equity provisio reserve
income to issue
method n
I. Joint ventures
Shenzhen
Real Estate
43,516,665. 1,213,920. 44,730,58
Jifa
Warehousin 12 17 5.29
g Co., Ltd.
Tian’an
International
Building
6,844,016.2 193,936.0 7,037,952.
Property
Managemen 5 6 31
t Company
of Shenzhen
50,360,681. 1,407,856. 51,768,53
Subtotal
37 23 7.60
II. Associated enterprises
Shenzhen
Wufang
18,983,614. 18,983,61 18,983,61
Ceramics
14 4.14 4.14
Industrial
Co., Ltd.
Shenzhen
Kangfu
165,000.0 165,000.0
Health 165,000.00
0 0
Products
Co., Ltd.
Shenzhen
Xinghao
756,670.6 756,670.6
Imitation 756,670.68
8 8
Porcelain
Co., Ltd.
Shenzhen
Social
Welfare
326,693.2 326,693.2
Company 326,693.24
4 4
Fuda
Electronics
Factory
Shenzhen
Fulong
1,684,350.0 1,684,350. 1,684,350
Industry
0 00 .00
Developmen
t Co., Ltd.
Haonianhua 2,733,570.0 2,733,570. 2,733,570
Hotel 5 05 .05
Shenzhen
Education
500,000.0 500,000.0
Fund 500,000.00
0 0
Longhua
Investment
158
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Shenzhen
Kangle
540,060.0 540,060.0
Sports Club 540,060.00
0 0
Huangfa
Branch
Dankeng
Village
Plants of
Fumin in 1,168,973.2 1,168,973. 1,168,973
Guanlan 0 20 .20
Town,
Shenzhen
City
Shenzhen
Bull 500,000.0 500,000.0
500,000.00
Entertainme 0 0
nt Co., Ltd.
Shenzhen
Lianhua
Caitian 1,475,465.9 1,475,465. 1,475,465
Property 1 91 .91
Managemen
t Co., Ltd.
Shenzhen
Yangyuan 1,030,000.0 1,030,000. 1,030,000
Industrial 0 00 .00
Co., Ltd.
Jiakaifeng
Co., Ltd. 600,000.0 600,000.0
600,000.00
Bao’an 0 0
Company
Guiyuan 350,000.0 350,000.0
350,000.00
Garage 0 0
Shenzhen
Wuweiben
500,000.0 500,000.0
Roof 500,000.00
0 0
Greening
Co., Ltd.
ShenzhenYu
anping
240,000.0 240,000.0
Plastic Steel 240,000.00
0 0
Doors Co.,
Ltd.
ShenzhenYo
ufang 100,000.0 100,000.0
100,000.00
Printing Co., 0 0
Ltd.
Shenzhen
Lusheng
100,000.0 100,000.0
Industrial 100,000.00
0 0
Developmen
t Co., Ltd.
CSCEC
Intelligent
27,380,29 632,605.5 28,012,89
Parking
4.13 8 9.71
Technology
Co., Ltd.
31,754,397. 27,380,29 632,605.5 59,767,29 31,754,39
Subtotal
22 4.13 8 6.93 7.22
82,115,078. 27,380,29 2,040,461. 111,535,8 31,754,39
Total
59 4.13 81 34.53 7.22
159
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Other notes:
18. Other Equity Instrument Investment
Unit: RMB
Item Ending balance Beginning balance
Gintian Industry (Group) Co., Ltd. 887,838.64 1,002,551.95
Total 887,838.64 1,002,551.95
Non-trading equity instrument investment in the Current Period disclosed by items
Unit: RMB
Reason for
Amount of Reason for
assigning to
other other
measure in fair
Dividend comprehensive comprehensive
Accumulative Accumulative value of which
Project name income income income
gains losses changes
recognized transferred to transferred to
included other
retained retained
comprehensive
earnings earnings
income
Gintian Not for
Industry business
2,702,517.67
(Group) Co., transaction
Ltd. purposes
Other notes:
19. Other Non-current Financial Assets
Unit: RMB
Item Ending balance Beginning balance
Other notes:
20. Investment Property
(1) Investment Property Adopting the Cost Measurement Mode
Applicable □Not applicable
Unit: RMB
Construction in
Item Houses and buildings Land use right Total
progress
I. Original carrying
value
1. Beginning balance 817,541,454.35 30,262,437.05 37,813,651.91 885,617,543.31
2. Increased amount for
43,115,972.25 19,509,471.00 -620,935.08 62,004,508.17
the current period
(1) Outsourcing 19,509,471.00 19,509,471.00
(2)Transfer from
inventory/fixed
41,393,882.14 41,393,882.14
assets/construction in
progress
(3) Business
combination increase
(4) Others 1,722,090.11 -620,935.08 1,101,155.03
160
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
3. Decreased amount
-1,045,082.77 35,276,005.85 34,230,923.08
for the current period
(1) Disposal 35,276,005.85 35,276,005.85
(2) Other transfer
(3) Exchange
-1,045,082.77 -1,045,082.77
adjustment
4. Ending balance 861,702,509.37 14,495,902.20 37,192,716.83 913,391,128.40
II. Accumulative
depreciation and
accumulative
amortization
1. Beginning balance 395,715,194.03 15,870,449.43 14,827,290.50 426,412,933.96
2. Increased amount for
75,563,017.13 11,902,257.30 7,169,473.04 94,634,747.47
the current period
(1) Withdrawal or
42,349,989.34 11,902,257.30 7,169,473.04 61,421,719.68
amortization
(2) Others 33,213,027.79 33,213,027.79
3. Decreased amount
-992,828.63 14,412,120.84 13,419,292.21
for the current period
(1) Disposal 14,412,120.84 14,412,120.84
(2) Other transfer
(3) Exchange
-992,828.63 -992,828.63
adjustment
4. Ending balance 472,271,039.79 13,360,585.89 21,996,763.54 507,628,389.22
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
389,431,469.58 1,135,316.31 15,195,953.29 405,762,739.18
value
2. Beginning carrying
421,826,260.32 14,391,987.62 22,986,361.41 459,204,609.35
value
(2) Investment Property Adopting the Fair Value Measurement Mode
□Applicable Not applicable
The Company shall comply with the disclosure requirements for the real estate industry in the Self-regulatory Guidelines No. 3 for
Companies Listed on Shenzhen Stock Exchange - Industry Information Disclosure.
Investment properties measured in fair value by project disclosure:
Unit: RMB
161
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Lease Reason for
income Range of fair value
Project Time of Beginning Closing fair
Location Floor area during this fair value changes
name completion fair value value
reporting changes and report
period index
Whether the Company has new investment properties in construction period measured in fair value
□Yes No
Whether the Company has new investment properties measured in fair value
□Yes No
(3) Investment Property Failed to Accomplish Certification of Property
Unit: RMB
Item Carrying value Reason
The house is used for property
management, once occupied by the third
507 Unit, Block No. 6, Maguling 23,989.01 party, a property management company,
now has been recovered, but hasn’t
handled the warrant yet.
Obtained after the success in the last
Meilin land [Note 1] instance in 2017, relevant certifications
of property are in the procedure
Total 23,989.01
Note 1: As at 31 December 2022, the original carrying value of Meilin land was RMB3,885,469.40, the accumulated accrued
depreciation was RMB3,885,469.40, and the carrying value was RMB0.
21. Fixed Assets
Unit: RMB
Item Ending balance Beginning balance
Fixed assets 82,745,172.12 114,155,590.40
Total 82,745,172.12 114,155,590.40
(1) List of Fixed Assets
Unit: RMB
Houses and Machinery Transportation Decoration of Other
Item Total
buildings equipment vehicle the fixed assets machinery
I. Original
carrying value:
1. Beginning
170,769,520.52 6,457,738.92 19,945,359.01 37,558,734.54 56,822,575.07 291,553,928.06
balance
2. Increased
amount for the 925,802.96 156,911.34 4,648,113.87 5,730,828.17
current period
(1) Purchase 925,802.96 34,972.76 4,648,113.87 5,608,889.59
(2) Transfer
from
121,938.58 121,938.58
construction in
progress
(3) Business
combination
increase
3. Decreased 40,910,235.23 1,409,600.00 4,395,553.86 46,715,389.09
amount for the
162
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
current period
(1) Disposal or
1,409,600.00 4,395,553.86 5,805,153.86
scrap
(2) Exchange
-483,646.91 -483,646.91
adjustment
(3) Others 41,393,882.14 41,393,882.14
4. Ending
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
II.
Accumulative
depreciation
1. Beginning
117,648,374.76 2,104,341.60 13,173,259.62 11,190,690.65 33,205,953.87 177,322,620.50
balance
2. Increased
amount for the 11,004,265.53 544,615.34 1,951,429.64 7,458,565.17 7,218,351.90 28,177,227.58
current period
(1) Withdrawal 11,004,265.53 544,615.34 1,951,429.64 7,458,565.17 7,218,351.90 28,177,227.58
3. Decreased
amount for the 32,769,959.84 1,334,118.09 3,647,292.29 37,751,370.22
current period
(1) Disposal or
1,334,118.09 3,647,292.29 4,981,410.38
scrap
(2) Exchange
-443,067.95 -443,067.95
adjustment
(3) Others 33,213,027.79 33,213,027.79
4. Ending
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
III.
Depreciation
reserves
1. Beginning
75,717.16 75,717.16
balance
2. Increased
amount for the
current period
(1) Withdrawal
3. Decreased
amount for the
current period
(1) Disposal or
scrap
4. Ending
75,717.16 75,717.16
balance
IV. Carrying
value
1. Ending
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. Beginning
53,121,145.76 4,353,397.32 6,772,099.39 26,368,043.89 23,540,904.04 114,155,590.40
carrying value
163
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
(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
2,364,479.98
Digital Building with 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
Room 401, 402, Sanxiang Business
652,721.66 nearby the present address. The existing property shall be
Building Office Building
replaced after the completion of the new office building.
Thus, the certification of the property is failed to transact.
Total 3,017,201.64
Other notes:
(5) Proceeds from Disposal of Fixed Assets
Unit: RMB
Item Ending balance Beginning balance
Other notes:
22. Construction in Progress
Unit: RMB
Item Ending balance Beginning balance
(1) List of Construction in Progress
Unit: RMB
Ending balance Beginning balance
Item Carrying Impairment Carrying Impairment
Carrying value Carrying value
amount provision amount provision
(2) Changes in Significant Construction in Progress during the Current Period
Unit: RMB
Of which:
Other Proportion of Capitalization
Accumulated amount of
Increased decreased accumulated rate of
Beginning Transferred in Ending amount of capitalized Capital
Project name Budget amount of the amount for investment in Job schedule interests for
balance fixed assets balance interest interests for resources
current period the current constructions the current
capitalization the current
period to budget period
period
(3) List of the Withdrawal of the Depreciation Reserves for Construction in Progress
Unit: RMB
Item Amount withdrawn Reason for withdrawal
Other notes:
164
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
(4) Engineering Materials
Unit: RMB
Ending balance Beginning balance
Item Carrying Impairment Carrying Impairment
Carrying value Carrying value
amount provision amount provision
Other notes:
23. Productive Living Assets
(1) Productive Living Assets Adopting Cost Measurement Mode
□Applicable Not applicable
(2) Productive Living Assets Adopting Fair Value Measurement Mode
□Applicable Not applicable
24. Oil and Gas Assets
□Applicable Not applicable
25. Right-of-use Assets
Unit: RMB
Item Houses and buildings Total
I. Original carrying value
1. Beginning balance 85,899,256.85 85,899,256.85
2. Increased amount for the current
24,328,862.17 24,328,862.17
period
(1) New Leases 24,328,862.17 24,328,862.17
3. Decreased amount for the current
13,249,845.21 13,249,845.21
period
(1) Expiration of lease contract
(2) Lease termination 13,249,845.21 13,249,845.21
4. Ending balance 96,978,273.81 96,978,273.81
II. Accumulative depreciation
1. Beginning balance 14,426,576.12 14,426,576.12
2. Increased amount for the current
22,380,277.42 22,380,277.42
period
(1) Withdrawal 22,380,277.42 22,380,277.42
3. Decreased amount for the current
9,996,995.38 9,996,995.38
period
(1) Disposal
Lease termination 9,996,995.38 9,996,995.38
4. Ending balance 26,809,858.16 26,809,858.16
III. Depreciation reserves
1. Beginning balance
2. Increased amount for the current
period
(1) Withdrawal
3. Decreased amount for the current
165
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
period
(1) Disposal
4. Ending balance
IV. Carrying value
1. Ending carrying value 70,168,415.65 70,168,415.65
2. Beginning carrying value 71,472,680.73 71,472,680.73
Other notes:
26. Intangible Assets
(1) List of Intangible Assets
Unit: RMB
Non-patent
Item Land use right Patent right Software use rights Total
technologies
I. Original carrying value
1. Beginning balance 3,060,312.13 3,060,312.13
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 balance 1,306,922.80 1,306,922.80
2. Increased amount for the
484,006.42 484,006.42
current period
(1) Withdrawal 484,006.42 484,006.42
3. Decreased amount for the
current period
(1) Disposal
4. Ending balance 1,790,929.22 1,790,929.22
III. Depreciation reserves
1. Beginning balance
2. Increased amount for the
current period
(1) Withdrawal
3. Decreased amount for the
current period
166
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
(1) Disposal
4. Ending balance
IV. Carrying value
1. Ending carrying value 1,269,382.91 1,269,382.91
2. Beginning carrying value 1,753,389.33 1,753,389.33
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:
27. Development Costs
Unit: RMB
Increased amount of the current period Decreased amount for the current period
Transferred
Beginning Recognized Ending
Item Internal into the
balance as balance
developme Others current
intangible
nt costs profit or
assets
loss
Total
Other notes:
28. Goodwill
(1) Original Carrying Value of Goodwill
Unit: RMB
Name of the Increase for the current period Decrease for the current period
invested units
Beginning
or events Formed by Ending balance
balance
generating 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
Beginning
or events Ending balance
balance Withdrawal Disposal
generating
goodwill
167
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Total
Information on the Assets Groups or Combination of Assets Groups which Goodwill Belongs to
Carrying Assets group or combination of assets groups
value of
goodwill Main composition Carrying value Recognition method Changes in current
period
9,446,847.38 Shenzhen Facility 21,490,611.97 Assets group or combination of assets No
Management groups capable of generating cash flows
Community independently in consideration of benefits
Technology Co., Ltd. from synergies of business combination
and the management’s administration and
monitoring of production and operating
activities.
Notes of the testing process of goodwill impairment, parameters (such as growth rate of the forecast period, growth rate of stable
period, rate of profit, discount rate, forecast period and so on for prediction of future present value of cash flows) and the
recognition method of goodwill impairment losses:
Influence of goodwill impairment testing
Note: The Company acquired 35% equity of Shenzhen Facility Management Community Technology Co., Ltd. in 2021, which
was a business combination not under the same control, and resulted in a goodwill of RMB9,446,847.38 without impairment after
the impairment test.
Other notes:
29. Long-term Prepaid Expense
Unit: RMB
Increased amount Amortization
Other decreased
Item Beginning balance of the current amount of the Ending balance
amount
period current period
Decoration fee 22,751,829.74 7,000,460.51 7,522,321.06 249,366.73 21,980,602.46
Total 22,751,829.74 7,000,460.51 7,522,321.06 249,366.73 21,980,602.46
Other notes:
30. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Deferred Income Tax Assets Had Not Been Off-set
Unit: RMB
Ending balance Beginning balance
Item
Deductible temporary Deferred income tax Deductible temporary Deferred income tax
differences assets differences assets
Provision for
72,321,489.09 15,066,804.41 119,305,827.39 28,122,514.38
impairment of assets
Internal unrealized
439,263,809.16 109,815,952.29 137,494,156.00 34,373,539.00
profit
Deductible losses 1,159,867,308.26 288,683,459.58 1,200,124,630.73 299,411,568.81
Accrued land VAT 3,838,271,429.24 959,567,857.31 3,184,602,479.28 796,150,619.82
Estimated profit
calculated at pre-sale
35,766,814.24 8,941,703.56 479,584,729.78 119,896,182.45
revenue of property
enterprises
168
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Other accrued expenses 4,512,525.55 974,808.89 8,579,103.04 1,862,165.86
Total 5,550,003,375.54 1,383,050,586.04 5,129,690,926.22 1,279,816,590.32
(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 967,914.16 241,978.54 1,231,415.14 307,853.79
than the tax basis
Total 967,914.16 241,978.54 1,231,415.14 307,853.79
(3) Deferred Income Tax Assets or Liabilities Had Been Off-set Listed in Net Amount
Unit: RMB
Beginning off-set
Ending off-set amount Ending balance of Beginning balance of
amount of deferred
Item of deferred income tax deferred income tax deferred income tax
income tax assets and
assets and liabilities assets and liabilities assets and liabilities
liabilities
Deferred income tax
1,383,050,586.04 1,279,816,590.32
assets
Deferred income tax
241,978.54 307,853.79
liabilities
(4) List of Unrecognized Deferred Income Tax Assets
Unit: RMB
Item Ending balance Beginning balance
Deductible temporary differences 52,448,071.36 73,039,624.89
Deductible losses 508,734,563.66 477,329,778.68
Total 561,182,635.02 550,369,403.57
(5) Deductible Losses of Unrecognized Deferred Income Tax Assets will Due in the Following Years
Unit: RMB
Year Ending amount Beginning amount Notes
2022 49,880,895.14 The deductible losses of 2017
2023 265,603,820.64 265,603,820.64 The deductible losses of 2018
2024 124,895,242.05 124,895,242.05 The deductible losses of 2019
2025 22,711,013.85 22,711,013.85 The deductible losses of 2020
2026 14,238,807.00 14,238,807.00 The deductible losses of 2021
2027 81,285,680.12 The deductible losses of 2022
Total 508,734,563.66 477,329,778.68
Other notes:
31. Other Non-current Assets
Unit: RMB
Ending balance Beginning balance
Item Carrying Impairment Carrying Impairment
Carrying value Carrying value
amount provision amount provision
169
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Prepayment for
purchase of
fixed assets,
investment 115,779.31 115,779.31 115,779.31 115,779.31
properties and
intangible
assets
Prepayment for
equity 42,726,200.00 42,726,200.00
acquisition
Others [note] 2,635,093.77 2,635,093.77 2,730,018.54 2,730,018.54
Total 2,750,873.08 2,750,873.08 45,571,997.85 45,571,997.85
Other notes:
[Note]:The amount is mainly the registered asset of real estate for investment, 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.
32. Short-term Borrowings
(1) Category of Short-term Borrowings
Unit: RMB
Item Ending balance Beginning balance
Notes of the category for short-term loans:
(2) List of the Short-term Borrowings Overdue but not Returned
The amount of the overdue unpaid short-term borrowings at the period-end was RMBXXX, of which the significant overdue
unpaid short-term borrowings are as follows:
Unit: RMB
Entity Ending balance Interest rate Overdue time Overdue charge rate
Other notes:
33. Trading Financial Liabilities
Unit: RMB
Item Ending balance Beginning balance
Of which:
Of which:
Other notes:
34. Derivative Financial Liabilities
Unit: RMB
Item Ending balance Beginning balance
Other notes:
35. Notes Payable
Unit: RMB
Category Ending balance Beginning balance
The total amount of notes payable due but unpaid was RMBXXX.
170
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
36. Accounts Payable
(1) List of Accounts Payable
Unit: RMB
Item Ending balance Beginning balance
Engineering construction expense
484,123,042.01 242,383,453.30
payable
Estimated payables 32,863,907.25 27,871,456.62
Others 91,296,439.26 81,639,902.31
Total 608,283,388.52 351,894,812.23
(2) Significant Accounts Payable Aged over 1 Year
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
18,217,672.83 Unsettled
Division Corp., Ltd.
Shenzhen Ruihe Construction Decoration
7,129,246.31 Unsettled
Co., Ltd.
Shanghai Mingpeng Construction Group
5,976,705.79 Unsettled
Co., Ltd.
Shenzhen Weiye Decoration Group Co.,
3,269,572.34 Unsettled
Ltd.
Total 59,593,197.27
Other notes:
37. Advances from Customers
(1) List of Advances from Customers
Unit: RMB
Item Ending balance Beginning balance
Rental 2,260,847.31 1,381,666.59
Total 2,260,847.31 1,381,666.59
(2) Significant Advances from Customers Aged over 1 Year
Unit: RMB
Item Ending balance Unpaid/Un-carry-over reason
38. Contract Liabilities
Unit: RMB
Item Ending balance Beginning balance
House payment in advance 857,317,217.99 1,329,251,898.56
Property fee in advance 15,740,950.87 24,258,900.52
Other payments in advance 47,769,871.95 20,655,010.32
Total 920,828,040.81 1,374,165,809.40
Significant changes in the amount of carrying value and the reason in the Reporting Period
Unit: RMB
171
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Item Change in amount Reason(s)
SZPRD-Fuchang Garden New buy-back payments in accordance with the terms of the
316,738,487.14
Phase II (Fuhui Huayuan) repurchase agreement.
SZPRD-Golden Collar’s The carried down qualified for revenue carried forward is carried
-527,519,133.76
Resort forward to income from principal businesses.
SZPRD-Banshan Yujing Banshan Yujing Phase II was delivered this year and met the conditions
-253,265,320.98
Phase II for carried down revenue.
Total -464,045,967.60 ——
The Company shall comply with the disclosure requirements for the real estate industry in the Self-regulatory Guidelines No. 3 for
Companies Listed on Shenzhen Stock Exchange - Industry Information Disclosure.
The proceeds information of top five advance sale amount:
Unit: RMB
Estimated date of Advance sale
No. Project name Beginning balance Ending balance
completion proportion
SZPRD-Fuchang
1 Garden Phase II 840,878,470.63 524,139,983.49 30 June 2023 100.00%
(Fuhui Huayuan)
SZPRD-Golden
2 15,574,706.92 543,093,840.68 25 December 2019 95.02%
Collar’s Resort
SZPRD-Hupan
3 716,422.02 8,401,706.42 30 November 2017 96.00%
Yujing Phase II
SZPRD-Banshan
4 110,921.17 253,376,242.15 12 January 2022 100.00%
Yujing Phase II
SZPRD-Hupan
5 36,697.25 36,697.25 1 June 2015 88.04%
Yujing Phase I
39. Payroll Payable
(1) List of Payroll Payable
Unit: RMB
Increase for the current Decrease for the
Item Beginning balance Ending balance
period current period
I. Short-term salary 227,076,754.76 907,831,085.48 900,181,732.27 234,726,107.97
II. Post-employment
benefit-defined 2,208,300.26 75,306,256.06 75,863,872.27 1,650,684.05
contribution plans
III. Termination
1,333,012.21 7,049,885.90 5,633,298.11 2,749,600.00
benefits
Total 230,618,067.23 990,187,227.44 981,678,902.65 239,126,392.02
(2) List of Short-term Salary
Unit: RMB
Increase for the Decrease for the
Item Beginning balance Ending balance
current period current period
1. Salary, bonus, allowance,
210,074,251.52 794,988,506.48 788,789,678.14 216,273,079.86
subsidy
2. Employee welfare 1,522,398.43 6,668,010.03 6,781,928.92 1,408,479.54
3. Social insurance 175,180.41 30,144,641.17 30,248,751.23 71,070.35
Of which: Medical insurance
171,489.07 26,038,316.48 26,149,746.01 60,059.54
premiums
Work-related injury insurance
1,148.13 1,182,667.30 1,182,551.73 1,263.70
premiums
172
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Maternity insurance 2,543.21 1,360,657.50 1,361,046.09 2,154.62
Other commercial insurances 1,562,999.89 1,555,407.40 7,592.49
4. Housing fund 1,739,640.18 27,832,396.89 28,292,393.76 1,279,643.31
5. Labor union budget and
12,762,584.50 14,569,702.27 15,979,320.17 11,352,966.60
employee education budget
Non-monetary benefits 802,699.72 33,627,828.64 30,089,660.05 4,340,868.31
Total 227,076,754.76 907,831,085.48 900,181,732.27 234,726,107.97
(3) List of Defined Contribution Plans
Unit: RMB
Increase for the current Decrease for the
Item Beginning balance Ending balance
period current period
1. Basic pension
123,001.91 59,598,053.07 59,575,378.23 145,676.75
insurance
2. Unemployment
3,276.52 1,606,957.30 1,606,108.79 4,125.03
insurance premiums
3. Supplementary
2,082,021.83 14,101,245.69 14,682,385.25 1,500,882.27
pension payment
Total 2,208,300.26 75,306,256.06 75,863,872.27 1,650,684.05
Other notes:
40. Taxes Payable
Unit: RMB
Item Ending balance Beginning balance
VAT 15,392,042.91 32,126,690.19
Enterprise income tax 57,096,046.69 89,593,466.11
Personal income tax 3,141,049.35 4,784,809.66
Urban maintenance and construction tax 1,464,551.01 2,226,514.52
Land appreciation tax 3,838,271,429.24 3,184,727,554.49
Land use tax 153,626.98 938,263.93
Property tax 600,966.66 406,052.03
Educational surcharge 707,668.15 1,063,657.57
Local educational fee 383,745.82 573,380.15
Others 67,220.00 149,801.69
Total 3,917,278,346.81 3,316,590,190.34
Other notes:
41. Other Payables
Unit: RMB
Item Ending balance Beginning balance
Dividends payable 12,202,676.04 17,542,675.98
Other payables 1,502,883,156.41 1,010,079,414.96
Total 1,515,085,832.45 1,027,622,090.94
173
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
(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 17,542,675.98
Total 12,202,676.04 17,542,675.98
Other notes: including significant dividends payable unpaid for over one year, the unpaid reason shall be disclosed:
Item Amount unpaid Reason
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 316,108,932.91 308,385,429.16
Margin 13,585,641.99 13,643,729.01
Collection on behalf 3,596,458.33 1,574,151.30
Intercourse funds 855,267,729.70 425,545,263.18
Accrued expenses 224,646,116.70 169,426,248.94
Payment on behalf 19,052,869.33 17,589,956.23
Others 70,625,407.45 73,914,637.14
Total 1,502,883,156.41 1,010,079,414.96
2) Significant Other Accounts Payable Aging over One Year
Unit: RMB
Item Ending balance Unpaid/Un-carry-over reason
Shenzhen Pason Aluminum Technology Did not submit the payment application
196,416,155.45
Co., Ltd. for historical reasons
Shenzhen Bay Technology Development
179,966,045.36 Unsettled
Co., Ltd.
174
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Shenzhen Hengyu (Group) Co., Ltd. 162,000,000.00 Unsettled
Shenzhen Real Estate Jifa Warehousing Come-and-go accounts without specific
42,296,665.14
Co., Ltd. payment term
Shenzhen Qianhai Micro Public Bank
6,875,262.75 Lease term not expired
Co., Ltd.
Total 587,554,128.70
Other notes:
42. Held-for-sale Liabilities
Unit: RMB
Item Ending balance Beginning balance
Other notes:
43. Current Portion of Non-current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Current portion of long-term borrowings 196,645,408.45 68,984,050.47
Lease obligation matured within 1 Year 22,213,358.37 14,940,651.36
Total 218,858,766.82 83,924,701.83
Other notes:
44. Other Current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Tax to be charged off 83,991,786.83 77,403,624.02
Total 83,991,786.83 77,403,624.02
Increase/decrease of the short-term bonds payable:
Unit: RMB
Amortizatio
Issued in Interest n of Repaid in
Bond Issue Beginning Ending
Name Par value Issue date the current accrued at premium the current
duration amount balance balance
period par value and period
depreciation
Total
Other notes:
45. Long-term Borrowings
(1) Category of Long-term Borrowings
Unit: RMB
Item Ending balance Beginning balance
Pledged loans 3,156,782,344.00 2,999,400,000.00
Mortgage loans 1,500,000.00
Credit loan 462,000,000.00 523,600,000.00
Total 3,618,782,344.00 3,524,500,000.00
Note to the category of long-term borrowings:
175
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
The pledged borrowings at the period-end were used to develop the Bangling urban renewal 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 29 November 2019 to 20 November 2024. And 69% equity of Rongyao Real Estate held by the Company was pledged and
the guarantee mode was the joint liability guaranty.
The pledge borrowings at the period-end 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.
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:
46. Bonds Payable
(1) Bonds Payable
Unit: RMB
Item Ending balance Beginning balance
(2) Changes of Bonds Payable (Excluding Other Financial Instruments Divided as Financial Liabilities
such as Preferred Shares and Perpetual Bonds)
Unit: RMB
Amortization
Issued in Interest Repaid in
Bond Issue Beginning of premium Ending
Name Par value Issue date the current accrued at the current
duration amount balance and balance
period par value period
depreciation
Total ——
(3) Convertible Conditions and Time for 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
instruments Carrying Carrying Carrying Carrying
Number Number Number Number
value value value value
Notes to basis for the classification of other financial instruments as financial liabilities
Other notes:
47. Lease Liabilities
Unit: RMB
Item Ending balance Beginning balance
Lease payments 119,208,080.55 124,179,565.50
Unrecognized financing expense -19,031,438.63 -26,157,731.25
176
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Less: lease liabilities due within 1 year -22,213,358.37 -14,940,651.36
Total 77,963,283.55 83,081,182.89
Other notes:
48. Long-term Payables
Unit: RMB
Item Ending balance Beginning balance
(1) Long-term Payables Listed by Nature
Unit: RMB
Item Ending balance Beginning balance
Other notes:
(2) Specific Payables
Unit: RMB
Increase for the Decrease for the Reason for
Item Beginning balance Ending balance
current period current period formation
Other notes:
49. Long-term Payroll Payable
(1) List of Long-term Payroll Payable
Unit: RMB
Item Ending balance Beginning balance
(2) Changes in Defined Benefit Plans
Obligation present value of defined benefit plans:
Unit: RMB
Item Amount for the current period Amount for the previous period
Plan assets:
Unit: RMB
Item Amount for the current period Amount for the previous period
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:
177
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
50. Provisions
Unit: RMB
Item Ending balance Beginning balance Reason for formation
Xuansheng property
Pending litigation 766,612.52 1,425,490.50
management fee lawsuit
Total 766,612.52 1,425,490.50
Other notes, including notes to related significant assumptions and evaluation of significant provisions:
Refer to Note XIV-2 for details.
51. Deferred Income
Unit: RMB
Increase for the Decrease for the Reason for
Item Beginning balance Ending balance
current period current period formation
Item involving government grants:
Unit: RMB
Amount
Amount
Amount of recorded Amount
recorded
newly into non- offset cost Related to
Beginning into other Other Ending
Item subsidy for operating in the assets/relat
balance income in changes balance
the current income in current ed income
the current
period the current period
period
period
Other notes:
52. Other Non-current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Utility specific fund 634,414.79 615,787.03
Housing principle fund 15,105,690.42 21,212,930.24
House warming deposit 7,058,030.03 7,008,598.13
Electric Equipment Maintenance fund 4,019,415.44 4,019,415.44
Deputed maintenance fund 53,798,172.96 46,608,942.66
Follow-up investment of employees for
40,000,000.00 40,000,000.00
Guanlan Bangling project
Others 7,393,196.15 6,594,009.58
Total 128,008,919.79 126,059,683.08
Other notes:
53. Share Capital
Unit: RMB
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:
178
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
54. Other Equity Instruments
(1) Basic Information about Other Outstanding Financial Instruments such as Preferred Shares and Perpetual Bonds at
the Period-end
(2) Changes of Outstanding Financial Instruments such as Preferred Shares and Perpetual Bonds at the Period-end
Unit: RMB
Increase for the current Decrease for the current
Outstandin Period-beginning Period-end
period period
g financial
instruments Carrying Carrying Carrying Carrying
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:
55. Capital Reserve
Unit: RMB
Increase for the Decrease for the
Item Beginning balance Ending balance
current period current period
Capital premium
73,854,303.62 73,854,303.62
(premium on stock)
Other capital reserves 80,488,045.38 80,488,045.38
Total 154,342,349.00 73,854,303.62 80,488,045.38
Other notes, including a description of the increase or decrease for the current period and the reasons for the change:
Note: Capital reserve in the Current Period decreased because:
The Company’s subsidiary, ITC Property Management Company, acquired 100% equity of Shenzhen Property Management Co.,
Ltd. in January 2022, and 100% equity of Shenzhen Shenfubao Property Development Co., Ltd., Shenzhen Shenfubao
Hydropower Municipal Service Co., Ltd., Shenzhen Free Trade Zone Security Service Co., Ltd., Shenzhen Free Trade Zone
Property Development Co., Ltd. in February 2022, both by means of business combination under the same control. It is stipulated
that, during the preparation of comparative statements at the end of the period for business combination, the parties involved shall
be deemed to be in their present state at the time when the ultimate controlling party begins to exercise control. Therefore, during
the combination of the acquired companies last year, the Company increased the opening surplus reserve and undistributed profit
respectively by RMB73,854,303.62, and RMB17,937,391.71. At the combination date, we reversed RMB73,854,303.62 in capital
surplus and RMB17,937,391.71 in surplus reserves, which were retroactively presented as an increase under the same control as
the previous year and RMB222,424,006.29 in unappropriated profit offset the difference.
56. Treasury Shares
Unit: RMB
Increase for the current Decrease for the
Item Beginning balance Ending balance
period current period
Other notes, including a description of the increase or decrease for the current period and the reasons for the change:
179
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
57. Other Comprehensive Income
Unit: RMB
Amount for the current period
Less:
Less:
recorded in
recorded in
other
other
comprehen
comprehensi Attributa
sive
ve income in ble
Item Beginning balance Amount before income in Attributable to the Ending balance
prior period Less: Income minority
deducting income tax prior Company as the parent
and tax expense sharehol
for the current period period and after tax
transferred in ders
transferred
retained after tax
in profit or
earnings in
loss in the
the current
current
period
period
I. Other
comprehensive
income that may
-2,574,121.54 -168,720.11 -168,720.11 -2,742,841.65
not be
reclassified to
profit or loss
Changes in fair
value of other
-2,574,121.54 -168,720.11 -168,720.11 -2,742,841.65
equity instrument
investment\
II. Other
comprehensive
income that may
-5,600,532.12 4,488,995.82 4,488,995.82 -1,111,536.30
subsequently be
reclassified to
profit or loss
Differences
arising from
translation of
foreign currency- -5,600,532.12 4,488,995.82 4,488,995.82 -1,111,536.30
denominated
financial
statements
Total of other
comprehensive -8,174,653.66 4,320,275.71 4,320,275.71 -3,854,377.95
income
Other notes, including the adjustment of the effective gain/loss on cash flow hedges to the initial recognized amount:
58. Specific Reserve
Unit: RMB
Increase for the current Decrease for the
Item Beginning balance Ending balance
period current period
Other notes, including a description of the increase or decrease for the current period and the reasons for the change:
59. Surplus Reserves
Unit: RMB
Increase for the current Decrease for the
Item Beginning balance Ending balance
period current period
Statutory surplus
47,209,537.05 19,249,057.34 17,937,391.71 48,521,202.68
reserves
Discretional surplus
365,403.13 365,403.13
reserves
Total 47,574,940.18 19,249,057.34 17,937,391.71 48,886,605.81
Notes, including changes and reason of change:
180
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
60. Retained Earnings
Unit: RMB
Item Current period Previous period
Beginning balance of retained profits
3,788,180,758.20 3,038,993,912.43
before adjustments
Total adjustment of retained earnings at
the beginning of the adjustment (+ for 12,149,572.03 -9,261,494.67
up, - for down)
Beginning balance of retained profits
3,800,330,330.23 3,029,732,417.76
after adjustments
Add: Net profit attributable to owners of
537,664,698.69 1,025,380,909.03
the Company as the parent
Less: Withdrawal of statutory surplus
19,249,057.34 10,431,568.84
reserve
Dividends of common shares payable 405,265,782.56 244,351,427.72
Others 222,424,006.29
Ending retained profits 3,691,056,182.73 3,800,330,330.23
List of adjustment of beginning retained profits:
1) RMBXXX beginning retained earnings was affected by retrospective adjustment conducted according to the Accounting
Standards for Business Enterprises and relevant new regulations.
2) RMBXXX beginning retained earnings was affected by changes in accounting policies.
3) RMBXXX beginning retained earnings was affected by correction of significant accounting errors.
4) RMB12,149,572.03 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.
61. 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 3,601,884,752.72 1,937,899,553.46 4,825,516,904.62 1,819,108,894.44
Others 106,784,294.13 40,878,067.76 85,603,623.71 8,273,928.74
Total 3,708,669,046.85 1,978,777,621.22 4,911,120,528.33 1,827,382,823.18
Whether the lower of the net profit before and after deduction of non-recurring gains and losses through audit is negative
□Yes No
Relevant information of revenue:
Unit: RMB
Category of contracts Segment 1 Segment 2 Total
Product categories 3,708,669,046.85 3,708,669,046.85
Of which:
Real estate 1,913,674,526.31 1,913,674,526.31
Property management 1,666,961,878.32 1,666,961,878.32
Leasing business 128,032,642.22 128,032,642.22
Classification by
operating region
Of which:
Shenzhen 3,122,667,234.12 3,122,667,234.12
Other regions 586,001,812.73 586,001,812.73
181
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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
Information about performance obligations:
On 31 December, 2022, the transaction price assigned to unfulfilled (or partially fulfilled) performance obligations was estimated
to be RMB921 million, which is mainly expected future revenue of transaction prices that have not met the delivery conditions
stipulated in sales contracts of real estate. The Company is expected to achieve the planned sales revenue within one or two years
when the house property is completed and passes the acceptance, which meets the delivery conditions stipulated in sales contracts,
and when the customers acquire the control rights of relevant goods or services on a pilot basis.
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 RMB920,828,040.81 at the period-end, among which RMB917,619,093.82 was expected to be recognized in 2023,
RMB3,208,946.99 in 2024.
Other notes:
The Company shall comply with the disclosure requirements for the real estate industry in the Self-regulatory Guidelines No. 3 for
Companies Listed on Shenzhen Stock Exchange - Industry Information Disclosure.
The top 5 accounts received with confirmed amount in the Reporting Period:
Unit: RMB
No. Project name Income balance
1 Golden Collar’s Resort 1,592,762,154.29
2 Banshan Yujing Phase I 253,083,803.64
3 Hupan Yujing Phase II 22,767,795.40
4 Songhu Langyuan 841,321.90
5 Hupan Yujing Phase I 709,174.33
62. Taxes and Surtaxes
Unit: RMB
182
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Item Amount for the current period Amount for the previous period
Urban maintenance and construction tax 11,647,933.20 15,933,888.97
Educational surcharge 5,019,133.52 6,928,652.97
Property tax 5,773,106.72 11,021,155.00
Land use tax 783,939.43 1,548,163.43
Land appreciation tax 695,789,536.89 1,309,913,734.35
Local educational fee 3,314,949.88 4,465,135.88
Other taxes 3,592,058.16 2,867,262.46
Total 725,920,657.80 1,352,677,993.06
Other notes:
63. Selling Expense
Unit: RMB
Item Amount for the current period Amount for the previous period
Agency fee 30,682,192.07 35,845,559.65
Consultancy and sales service charges 5,037,241.10 8,151,107.45
Advertising expenses 2,582,813.39 9,731,964.11
Employee remuneration 7,740,228.91 6,438,365.79
Others 7,499,522.31 13,205,019.02
Total 53,541,997.78 73,372,016.02
Other notes:
64. Administrative Expense
Unit: RMB
Item Amount for the current period Amount for the previous period
Employee remuneration 238,534,091.52 230,698,574.25
Administrative office cost 28,064,014.57 36,035,374.29
Assets amortization and depreciation
26,431,430.81 22,235,485.56
expense
Litigation costs 960,169.09 1,316,110.53
Consultancy and broker charges 7,721,484.95 4,829,258.25
Entertainment expense 3,661,253.01 2,623,501.19
Rent and property fee 2,313,473.60 2,217,778.35
Travel expense 516,335.81 667,459.58
Others 21,789,402.38 23,351,813.61
Total 329,991,655.74 323,975,355.61
Other notes:
65. Development Expense
Unit: RMB
Item Amount for the current period Amount for the previous period
Employee remuneration 2,948,680.83 1,959,851.56
183
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Depreciation and amortization expense 27,342.88 6,204.09
Office cost 85,952.39 64,656.03
Travel expense 16,471.28 17,928.57
Entertainment expense 4,280.00 18,118.90
R&D material expense 25,050.00 68,288.00
Amortization of right-of-use assets 59,696.04 20,285.78
Others 76,655.69 16,464.87
Total 3,244,129.11 2,171,797.80
Other notes:
66. Finance Costs
Unit: RMB
Item Amount for the current period Amount for the previous period
Finance costs 64,941,564.63 75,361,420.03
Less: Interest income -21,591,864.72 -75,033,921.17
Foreign exchange gains or losses -600,187.19 145,683.08
Others 7,821,671.11 4,888,485.39
Total 50,571,183.83 5,361,667.33
Other notes:
67. Other Income
Unit: RMB
Sources Amount for the current period Amount for the previous period
Government grants related to income 10,637,742.42 24,201,919.63
Government grants related to assets
Return of auxiliary expense for
282,364.88 270,696.35
individual income tax withheld
Additional deduction of VAT 8,204,836.92 6,867,086.50
Rebate of VAT 359,114.45 672,523.81
Total 19,484,058.67 32,012,226.29
68. Investment Income
Unit: RMB
Item Amount for the current period Amount for the previous period
Long-term equity investment income
2,040,461.81 4,650,460.58
accounted by equity method
Funds central clearing house money
-59,130.91 1,959,264.79
management investment
Total 1,981,330.90 6,609,725.37
Other notes:
69. Net Gain on Exposure Hedges
Unit: RMB
184
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Item Amount for the current period Amount for the previous period
Other notes:
70. Gain on Changes in Fair Value
Unit: RMB
Sources Amount for the current period Amount for the previous period
Trading financial assets 117,082.19 193,746.57
Total 117,082.19 193,746.57
Other notes:
71. Credit Impairment Loss
Unit: RMB
Item Amount for the current period Amount for the previous period
Bad debt loss -17,395,139.90 -29,194,857.89
Total -17,395,139.90 -29,194,857.89
Other notes:
72. Asset Impairment Loss
Unit: RMB
Item Amount for the current period Amount for the previous period
II. Inventory falling price loss and impairment
-528,430.23 23,120.82
provision for contract performance costs
Total -528,430.23 23,120.82
Other notes:
73. Asset Disposal Income
Unit: RMB
Sources Amount for the current period Amount for the previous period
Gains on disposal of fixed assets -130,574.60
Investment properties disposal gains 175,811,822.99
Others 129,357.05 27.94
Total 175,810,605.44 27.94
74. Non-operating Income
Unit: RMB
Amount recorded in the
Amount for the previous
Item Amount for the current period current non-recurring profit or
period
loss
Government grants 10,000.00
Gains on damage and scrap of
5,963.68 9,650.00 5,963.68
non-current assets
Confiscated income 354,580.59 809,424.18 354,580.59
185
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Payments unable to clear 3,129,253.59 2,330,544.39 1,151,425.28
Others 3,708,206.42 12,427,940.84 3,192,592.06
Total 7,198,004.28 15,587,559.41 4,704,561.61
Government grants recorded into current profit or loss
Unit: RMB
Whether
influence the Special Related to
Distribution Distribution Amount for the
Item Nature profits or losses subsidy or Previous period assets/related
entity reason current period
of the year or not income
not
Subsidies obtained from the
state by undertaking the
sustainability of public utilities, Related to
Others Subsidies No No 10,000.00
the supply of socially necessary revenue
products, or the function of
price control
Other notes:
Other non-operating income in the current period mainly comes from the owner tarte settlement confirmed by the Company.
75. Non-operating Expense
Unit: RMB
Amount recorded in the
Amount for the previous
Item Amount for the current period current non-recurring profit or
period
loss
Donation 26,000.00 139,000.01 26,000.00
Litigation expenses 258,891.82 191,457.86 147,528.97
Penalty and fine for delaying
121,377.17 263,358.41 232,740.02
payment
Losses from damage and
207,427.68 76,980.64 172,026.10
scrap of non-current assets
Others 1,943,197.07 6,825,181.98 1,773,514.16
Total 2,556,893.74 7,495,978.90 2,351,809.25
Other notes:
76. 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 324,691,681.99 664,966,662.82
Deferred income tax expense -103,299,870.97 -329,061,924.63
Total 221,391,811.02 335,904,738.19
(2) Adjustment Process of Accounting Profit and Income Tax Expense
Unit: RMB
Item Amount for the current period
Total profit 750,732,418.98
Current income tax expense accounted at statutory/applicable tax rate 187,683,104.75
Influence of applying different tax rates by subsidiaries -4,167,739.41
186
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Influence of income tax before adjustment 19,508,155.56
Influence of non-deductible costs, expenses and losses 19,580,957.75
The effect of using deductible losses of deferred income tax assets that have not
-4,183,108.31
been recognized in the previous period
Effect of deductible temporary differences or deductible losses on deferred
2,512,300.58
income tax assets not recognized in the current period
Changes in the balance of deferred income tax assets/liabilities at the beginning
458,140.10
of the period due to adjustment of tax rate
Income tax expense 221,391,811.02
Other notes:
77. Other Comprehensive Income
Refer to Note VII-57 for details.
78. Cash Flow Statement
(1) Cash Generated from Other Operating Activities
Unit: RMB
Item Amount for the current period Amount for the previous period
Large intercourse funds received 531,021,536.31 119,896,015.78
Interest income 21,591,864.72 74,905,183.74
Net margins, security deposit and
118,560,933.18 134,580,455.36
various special funds received
Government grants received 10,637,742.42 24,634,476.35
Other small receivables 30,089,906.24 830,679.93
Decreased limited amount for the current
366,965,985.73
period
Total 1,078,867,968.60 354,846,811.16
Notes:
(2) Cash Used in Other Operating Activities
Unit: RMB
Item Amount for the current period Amount for the previous period
Paying administrative expense in cash 61,038,183.86 55,452,674.82
Paying selling expense in cash 48,198,423.56 62,996,298.93
Net payment of utility expense and various
79,085,946.82 179,760,738.91
collecting payments on behalf of others
Other small payments 47,884,937.67 35,233,110.90
Amount of newly limited funds 1,721,815.22 373,079,206.86
Total 237,929,307.13 706,522,030.42
Notes:
(3) Cash Generated from Other Investing Activities
Unit: RMB
Item Amount for the current period Amount for the previous period
187
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Notes:
(4) Cash Used in Other Investing Activities
Unit: RMB
Item Amount for the current period Amount for the previous period
Notes:
(5) Cash Generated from Other Financing Activities
Unit: RMB
Item Amount for the current period Amount for the previous period
Notes:
(6) 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 271,489,501.62 42,726,200.00
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 29,681,985.71 20,052,203.22
Total 306,511,487.27 62,778,403.22
Notes:
79. Supplemental Information for Cash Flow Statement
(1) Supplemental Information For Cash Flow Statement
Unit: RMB
Amount during the
Supplemental information Previous period
current period
1. Reconciliation of net profit to net cash flows generated from
operating activities
Net profit 529,340,607.96 1,008,009,706.75
Add: Provision for impairment of assets 17,923,570.13 29,171,737.07
Depreciation of fixed assets, oil-gas assets, and productive biological
89,598,947.26 53,521,819.80
assets
Depreciation of right-of-use assets 22,380,277.42 13,946,768.72
Amortization of intangible assets 484,006.42 428,057.97
Amortization of long-term prepaid expenses 7,522,321.06 5,168,232.95
Losses from disposal of fixed assets, intangible assets and other long-
-170,564,114.45 -27.94
lived assets (gains represented by “-”)
Losses from scrap of fixed assets (gains represented by “-”) 201,464.00 67,330.64
Losses from changes in fair value (gains represented by “-”) -117,082.19 -193,746.57
Finance costs (gains represented by “-”) 69,585,200.52 78,852,906.52
188
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Investment loss (gains represented by “-”) -1,981,330.90 -6,609,725.37
Decrease in deferred income tax assets (gains represented by “-”) -103,233,995.72 -329,039,966.22
Increase in deferred income tax liabilities (decrease represented by “-”) -65,875.25 -21,958.41
Decrease in inventory (gains represented by “-”) -1,729,017,854.81 -3,692,265,882.00
Decrease in accounts receivable generated from operating activities
611,487,330.14 -541,399,403.57
(gains represented by “-”)
Increase in accounts payable used in operating activities (decrease
761,689,632.27 1,551,384,397.21
represented by “-”)
Others
Net cash flows from operating activities 105,233,103.86 -1,828,979,752.45
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 1,509,693,857.48 1,907,742,235.25
Less: Opening balance of cash 1,907,742,235.25 4,340,900,107.67
Add: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents -398,048,377.77 -2,433,157,872.42
(2) Net Cash Paid For Acquisition of Subsidiaries
Unit: RMB
Amount
Other notes:
(3) Net Cash Received from Disposal of the Subsidiaries
Unit: RMB
Amount
Of which:
Of which:
Of which:
Other notes:
(4) Cash and Cash Equivalents
Unit: RMB
Item Ending balance Beginning balance
I. Cash 1,509,693,857.48 1,907,742,235.25
Of which: Cash on hand 43,833.00 122,823.16
Bank deposits on demand 1,506,148,081.54 1,902,488,048.83
Other monetary assets on demand 3,501,942.94 5,131,363.26
III. Ending balance of cash and cash
1,509,693,857.48 1,907,742,235.25
equivalents
Other notes:
189
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
80. Notes to Items of the Statements of Changes in Owners’ Equity
Notes to the name of “Other” of closing balance of the same period of last year adjusted and the amount adjusted:
Not applicable.
81. Assets with Restricted Ownership or Right of Use
Unit: RMB
Item Ending carrying amount Reason for restriction
Monetary capital 7,835,036.35 Note 1 - Note 10
Land use right of Fumin New Village,
542,507,314.43 Note 11
Futian District
Total 550,342,350.78
Other notes:
Note 1: In terms of monetary assets with restricted right to use at the period-end, there was an escrow deposit of RMB44,820.14 in
the catering branch of the subsidiary company Shandong Shenguomao Real Estate Management Co., Ltd.
Note 2: In terms of monetary assets with restricted right to use at the period-end, there was an advance payment guarantee of
RMB459,627.50 issued by the subsidiary company Shenzhen Facility Management Community Technology Co., Ltd. in
December 2021 for the upgrading and reconstruction of the smart park of Shenzhen Bay Eco-Technology Park and the software
platform development contract.
Note 3: In terms of monetary assets with restricted right to use at the period-end, there was RMB3,000,000.00 in the subsidiary
company Shenzhen Facility Management Community Technology Co., Ltd. blocked by the court due to pre-litigation preservation
for contract disputes.
Note 4: In terms of monetary assets with restricted right to use at the period-end, there was a loan deposit of RMB1,131,041.58
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 5: In terms of monetary assets with restricted right to use at the period-end, there was RMB2,860,000.00 of interest on
unexpired term deposits accrued at the period-end.
Note 6: In terms of monetary assets with restricted right to use at the period-end, there was RMB16,111.20 of interest on large-
denomination CDs (more than one year).
Note 7: In terms of monetary assets with restricted right to use at the period-end, there was RMB129,154.28 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 8: In terms of monetary assets with restricted right to use at the period-end, there was a restricted fund of RMB42,781.65 in
the blocked account of the subsidiary company Shenzhen Huazhengpeng Property Management Co., Ltd.
Note 9: At the end of the period, there were monetary funds with restricted use rights, including an amount of RMB 150,000.00,
which was provided by the subsidiary Shenzhen Guomao Property Management Co., Ltd. This amount was submitted on 28
December, 2022, as an on-demand bid bond to participate in the bidding process for the Jiulong Street Domestic Waste Sorting
Operation Project (Bidding No.: 21C00183).
Note 10: In terms of monetary assets with restricted right to use at the period-end, there was an deposit for POS of RMB1,500.00
in the Shandong Shenguomao Real Estate Management Co., Ltd.
Note 11: Due to the needs of daily business activities, the Company applied for a loan from Bank of Communications Co., Ltd.
Shenzhen Branch and mortgaged the land use right of Fumin New Village, Futian District. The loan has a duration from 27
November 2020 to 27 November 2023 and applies floating interest rates.
190
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
82. 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 6,918,098.51
Of which: USD 120,000.00 6.9646 835,752.00
EUR
HKD 1,109,885.02 0.8933 991,426.99
VND 17,434,655,883.00 0.0003 5,090,919.52
Accounts prepaid 8,556.94 7,643.66
Of which: HKD 8,556.94 0.8933 7,643.66
Other payables 4,542,972.70 4,058,101.22
Of which: HKD 4,542,972.70 0.8933 4,058,101.22
Accounts receivable
Of which: USD
EUR
HKD
Long-term borrowings
Of which: USD
EUR
HKD
Other notes:
(2) Notes to Overseas Entities Including: for Significant Oversea Entities, Main Operating Place,
Recording Currency and Selection Basis Shall Be Disclosed; if there Are Changes in Recording Currency,
Relevant Reasons Shall Be Disclosed.
Applicable □Not applicable
Standard
Main operating
Item currency for Basis for choosing
place
accounting
Shum Yip Properties Development Co.,
Hong Kong HKD Located in HK, settled by HKD
Ltd. and its subsidiary
Vietnam Shenguomao Property
Vietnam VND Located in Vietnam, settled by VND
Management Co., Ltd.
83. Arbitrage
Qualitative and quantitative information of relevant arbitrage instruments, hedged risk in line with the type of arbitrage to disclose:
84. Government Grants
(1) Basic Information on Government Grants
Unit: RMB
Amount recorded in the
Category Amount Listed items
current profit or loss
Subsidies for pandemic
4,166,354.92 Other income 4,166,354.92
prevention
Subsidies for purchase of post 1,734,011.90 Other income 1,734,011.90
191
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
The Subsidy for Stabilizing
1,526,617.17 Other income 1,526,617.17
Employment
Other subsidies 1,205,562.34 Other income 1,205,562.34
Incentive grants for domestic
796,209.20 Other income 796,209.20
waste classification
Shenzhen standard field
658,326.00 Other income 658,326.00
special funds
Service industry special
400,000.00 Other income 400,000.00
guidance funds to subsidize
Military service grants for
150,660.89 Other income 150,660.89
college students
Total 10,637,742.42 10,637,742.42
(2) Return of Government Grants
□Applicable Not applicable
Other notes:
85. Other
VIII. Change of Consolidation Scope
1. Business Combination Not under the Same Control
(1) Business Combination Not under the Same Control during the Current Period
Unit: RMB
Income of Net profits of
Time and
Cost of Recognition acquiree from acquiree from
Name of place of Proportion of Way to gain
gaining the Purchase date basis of the purchase the purchase
acquiree gaining equity equity
equity purchase date date to date to
equity
period-end period-end
Other notes:
(2) Combination Cost and Goodwill
Unit: RMB
Combination cost
-Cash
-Fair value of non-cash assets
-Fair value of 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
Note to determination method of the fair value of the combination cost, consideration and changes:
The main formation reason for the large goodwill:
192
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Other notes:
(3) The Identifiable Assets and Liabilities of Acquiree on Purchase Date
Unit: RMB
Fair value on purchase date Carrying value on purchase date
Assets:
Monetary 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 from
Recognitio Income from the Income of the Net profits of the
the period-begin to
Combined Proportion of Combination n basis of period-begin to the acquiree during acquiree during
Basis the combination
party the equity date combinatio combination date of the period of the period of
date of the
n date the acquiree comparison comparison
acquiree
Shenzhen Controlled 31 January
Shareholdi
Property 100.00% by the same
2022 25,035,486.19 9,699,809.03 163,878,223.34 3,393,386.78
ng change
Management ultimate
193
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Co., Ltd. controlling completed
party before
and after
the
combinatio
n
Controlled
by the same
Shenzhen ultimate
Foreign Trade controlling Shareholdi
28 February
Property 100.00% party before
2022
ng change 5,958,619.92 1,928,949.51 49,985,238.95 15,663,629.13
Management and after completed
Co., Ltd. the
combinatio
n
Controlled
by the same
Shenzhen ultimate
Shenfubao controlling Shareholdi
28 February
Property 100.00% party before
2022
ng change 25,207,937.91 -1,029,615.71 137,536,234.26 1,524,213.27
Development and after completed
Co., Ltd. the
combinatio
n
Controlled
by the same
Shenzhen
ultimate
Shenfubao
controlling Shareholdi
Hydropower 28 February
Municipal
100.00% party before
2022
ng change 12,592,981.47 -601,470.42 50,404,146.02 141,335.20
and after completed
Service Co.,
the
Ltd.
combinatio
n
Controlled
by the same
Shenzhen Free ultimate
Trade Zone controlling Shareholdi
28 February
Security 100.00% party before
2022
ng change 4,908,193.51 -401,524.25 29,035,534.66 528,441.32
Service Co., and after completed
Ltd. the
combinatio
n
Other notes:
(2) Combination Cost
Unit: RMB
Shenzhen Shenzhen Shenzhen
Shenzhen Shenzhen Free
Foreign Trade Shenfubao Shenfubao
Property Trade Zone
Combination cost Property Property Hydropower
Management Co., Security Service
Management Development Co., Municipal Service
Ltd. Co., Ltd.
Co., Ltd. Ltd. Co., Ltd.
Cash 206,390,636.61 20,902,006.86 61,147,388.00 21,839,733.03 3,935,937.12
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:
194
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Other notes:
(3) The Carrying Value of Assets and Liabilities of the Combined Party on the Combination Date
Unit: RMB
Shenzhen Foreign Shenzhen Shenfubao Shenzhen Shenfubao Shenzhen Free Trade
Shenzhen Property
Trade Property Property Development Hydropower Municipal Zone Security Service
Management Co., Ltd.
Management Co., Ltd. Co., Ltd. Service Co., Ltd. Co., Ltd.
End of the End of the End of the End of the End of the
Combinati Combinati Combinati Combinati Combinati
previous previous previous previous previous
on date on date on date on date on date
period period period period period
105,837,66 100,690,03 41,299,553 42,931,316 60,458,752 61,481,837 38,682,699 35,566,312 13,120,702 14,479,933
Assets: 5.25 4.60 .50 .30 .36 .99 .45 .10 .94 .02
Monetary 58,855,529 65,906,572 10,609,630 20,820,248 8,732,915. 12,441,809 4,663,174. 4,186,518. 3,922,018. 5,640,117.
capital .69 .11 .28 .28 07 .51 47 89 67 11
Accounts 6,828,196. 1,069,114. 26,118,212 14,738,482 12,859,828 6,336,522. 4,233,577. 2,073,848.
454,920.23 51,580.00
receivable 32 51 .57 .13 .40 79 07 13
Inventories 428,476.18 860,082.56 84,935.19 103,719.68 140.00 31,699.42 184,918.86 186,658.86 40,885.60 25,885.60
Fixed 2,478,334. 2,546,464. 2,678,518. 2,534,272.
165,161.96 172,534.15 633,898.40 661,516.56 72,922.78 79,360.08
assets 18 18 26 41
Intangible
262,405.61 270,899.35
assets
Trading
7,115,781.
financial
assets 28
Other 35,418,132 24,549,210 14,070,792 13,497,148 21,673,963 30,607,309 19,564,582 24,190,096 4,851,298. 6,660,722.
receivables .94 .13 .18 .50 .54 .31 .83 .56 82 10
Investment 1,416,449. 1,434,434. 8,043,206. 8,116,325.
properties 67 11 72 76
62,204,013 66,756,112 22,654,094 26,214,806 32,820,304 32,813,774 17,047,124 13,329,266 9,296,560. 10,254,266
Liabilities: .13 .80 .49 .80 .88 .80 .62 .85 57 .40
Borrowing
s
Accounts
4,490.00 4,500.00 13,226,287 10,055,529 9,748,764. 5,871,781.
payable 2,200.00 2,200.00
.40 .99 89 56
Payments
2,154,855. 2,362,915.
received in 423,970.84 937.00 225,682.87 115,861.36
advance 41 66
Payroll 10,205,112 18,747,806 7,991,914. 7,578,271. 3,632,907. 6,151,658. 1,656,806. 4,221,419. 3,679,238.
966,353.70
payable .57 .09 43 64 10 09 26 11 77
Tax and
6,547,489. 1,987,355. 4,485,268. 7,680,380. 2,355,221. 2,149,728.
fees 498,884.07 422,251.30 73,144.90 125,128.30
payables 62 64 35 89 84 75
Other 30,430,187 38,181,834 6,824,117. 7,681,380. 10,292,221 10,681,537 5,422,380. 5,378,427. 4,886,135. 6,334,037.
payables .40 .61 26 49 .49 .84 29 73 20 97
Long-term 14,133,360 7,836,916. 3,347,367. 3,270,273. 1,154,911. 1,412,404.
payables .26 46 45 78 64 47
43,633,652 33,933,921 18,645,459 16,716,509 27,638,447 28,668,063 21,635,574 22,237,045 3,824,142. 4,225,666.
Net assets
.12 .80 .01 .50 .48 .19 .83 .25 37 62
Less: non-
1,839,029. 1,839,939.
controlling
interests 96 00
195
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Net assets 43,633,652 33,933,921 18,645,459 16,716,509 25,799,417 26,828,124 21,635,574 22,237,045 3,824,142. 4,225,666.
acquired .12 .80 .01 .50 .52 .19 .83 .25 37 62
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 was a single disposal of an investment in a subsidiary that resulted in a loss of control
□Yes No
Whether there was a step-by-step disposal of investment in a subsidiary through multiple transactions and loss of control during
the 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:
Increase in scope of combination
Contributi
Time and place of gaining Contribution
Name Way to gain equity on
equity amount
proportion
Business combination under
Shenzhen Shenwu Elevator Co., Ltd. 31 January 2022 3,500,000 100%
common control
Shenzhen Shenfang Property Cleaning Business combination under
31 January 2022 100%
Co., Ltd. common control
Newly-established
Shenzhen Wuhe Urban Renewal Co., Ltd. 25 February 2022 195,000,000 100%
subsidiary
Shenzhen Fubao Urban Resources Business combination under
28 February 2022 3,000,000 60%
Management Co., Ltd. common control
Newly-established
Yangzhou Wuhe Real Estate Co., Ltd. 17 March 2022 33,500,000 67%
subsidiary
Shzhen Tonglu Wuhe Investment Newly-established
2 April 2022 10,000,000 100%
Development Co., Ltd. subsidiary
Shenzhen International Trade Industry Newly-established
27 April 2022 1,540,000 55%
Space Service Co., Ltd. subsidiary
6. Other
IX. Equity in Other Entities
1. Equity in Subsidiaries
(1) Compositions of the Group
Main Place of Shareholding percentage (%) Way of
Name of subsidiaries Business nature
operating registratio Directly Indirectly gaining
196
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
place n
Shenzhen Huangcheng Real Estate Co., Ltd. Shenzhen Shenzhen Real estate 100.00% Set-up
Shenzhen Wuhe Industry Investment
Shenzhen Shenzhen Real estate 100.00% Set-up
Development Co., Ltd.
Software and Business
Shenzhen Facility Management Community information combination
Shenzhen Shenzhen 35.00%
Technology Co., Ltd. technology not under the
services same control
Software and Business
information combination
Beijing Facility Home Technology Co., Ltd. Beijing Beijing 17.85%
technology not under the
services same control
SZPRD Xuzhou Dapeng Real Estate
Xuzhou Xuzhou Real estate 100.00% Set-up
Development Co., Ltd.
Dongguan ITC Changsheng Real Estate
Dongguan Dongguan Real estate 100.00% Set-up
Development Co., Ltd.
SZPRD Yangzhou Real Estate Development
Yangzhou Yangzhou Real estate 100.00% Set-up
Co., Ltd.
Shenzhen International Trade Center Property
Shenzhen Shenzhen Real estate 100.00% Set-up
Management Co., Ltd.
Shenzhen Guomaomei Life Service Co., Ltd. Shenzhen Shenzhen Real estate 100.00% Set-up
Shandong Shenguomao Real Estate
Jinan Jinan Real estate 100.00% Set-up
Management Co., Ltd.
Chongqing Shenguomao Real Estate Chongqin Chongqin
Real estate 100.00% Set-up
Management Co., Ltd. g g
Chongqin Chongqin
Chongqing Aobo Elevator Co., Ltd. Service industry 100.00% Set-up
g g
Chongqing Tianque Elevator Technology Co.,
Shenzhen Shenzhen Service industry 100.00% Set-up
Ltd.
Shenzhen Guoguan Electromechanical Device
Shenzhen Shenzhen Service industry 100.00% Set-up
Co., Ltd.
Accommodation
Shenzhen Guomao Catering Co., Ltd. Shenzhen Shenzhen 100.00% Set-up
and catering
Shenzhen Property Engineering and
Shenzhen Shenzhen Service industry 100.00% Set-up
Construction Supervision Co., Ltd.
SZPRD Commercial Operation Co., Ltd. Shenzhen Shenzhen Service industry 100.00% Set-up
Zhanjiang Zhanjiang
SZPRD Zhanjiang Branch Real estate 100.00% Set-up
City City
Hong Hong
Shum Yip Properties Development Co., Ltd. Real estate 100.00% Set-up
Kong Kong
Hong Hong
Wayhang Development Co., Ltd. Real estate 100.00% Set-up
Kong Kong
Hong Hong
Chief Link Properties Co., Ltd. Real estate 70.00% Set-up
Kong Kong
Business
Hong Hong combination
Syndis Investment Co., Ltd. Real estate 70.00%
Kong Kong not under the
same control
Yangzhou Shouxihu Jingyue Property
Yangzhou Yangzhou Real estate 51.00% Set-up
Development Co., Ltd.
Shandong International Trade Center Hotel
Jinan Jinan Real estate 100.00% Set-up
Management Co., Ltd.
Shenzhen Shenshan Special Cooperation Zone
Shenzhen Shenzhen Real estate 65.00% Set-up
Guomao Property Development Co., Ltd.
197
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Shenzhen Guomao Tongle Property
Shenzhen Shenzhen Real estate 51.00% Set-up
Management Co., Ltd.
Business
Shenzhen Rongyao Real Estate Development combination
Shenzhen Shenzhen Real estate 69.00%
Co., Ltd. not under the
same control
Business
Shenzhen ITC Technology Park Service Co., combination
Shenzhen Shenzhen Real estate 100.00%
Ltd. under the
same control
Business
Shenzhen Julian Human Resources combination
Shenzhen Shenzhen Service industry 100.00%
Development Co., Ltd. under the
same control
Business
Shenzhen Huazhengpeng Property combination
Shenzhen Shenzhen Real estate 100.00%
Management Development Co., Ltd. under the
same control
Business
combination
SZPRD Urban Renewal Co., Ltd. Shenzhen Shenzhen Real estate 100.00%
under the
same control
Business
Shenzhen Penghongyuan Industrial Accommodation combination
Shenzhen Shenzhen 100.00%
Development Co., Ltd. and catering under the
same control
Business
Shenzhen Jinhailian Property Management combination
Shenzhen Shenzhen Real estate 100.00%
Co., Ltd. under the
same control
Business
Sanitation and combination
Shenzhen Social Welfare Co., Ltd. Shenzhen Shenzhen 100.00%
social work under the
same control
Business
Shenzhen Fuyuanmin Property Management combination
Shenzhen Shenzhen Real estate 100.00%
Limited Liability Company under the
same control
Business
Shenzhen Meilong Industrial Development combination
Shenzhen Shenzhen Service industry 100.00%
Co., Ltd. under the
same control
Business
Public facilities
combination
Shenzhen Guomao Shenlv Garden Co., Ltd. Shenzhen Shenzhen management 90.00%
under the
services
same control
Business
Shenzhen Jiayuan Property Management Co., combination
Shenzhen Shenzhen Real estate 54.00%
Ltd. under the
same control
Business
Shenzhen Helinhua Construction Management combination
Shenzhen Shenzhen Real estate 90.00%
Co., Ltd. under the
same control
Business
Shenzhen Zhongtongda House Xiushan Construction combination
Shenzhen Shenzhen 90.00%
Service Co., Ltd. industry under the
same control
Business
Shenzhen Kangping Industrial Co., Ltd. Shenzhen Shenzhen Retail trade 90.00% combination
under the
198
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
same control
Business
Manufacturing combination
Shenzhen Sports Service Co., Ltd. Shenzhen Shenzhen 100.00%
industry under the
same control
Business
combination
Shenzhen Teacher’s Home Training Co., Ltd. Shenzhen Shenzhen Retail trade 100.00%
under the
same control
Business
combination
Shenzhen Education Industrial Co., Ltd. Shenzhen Shenzhen Service industry 100.00%
under the
same control
Business
combination
Shenzhen Yufa Industrial Co., Ltd. Shenzhen Shenzhen Retail trade 80.95%
under the
same control
SZPRD Fuyuantai Development Co., Ltd. Shenzhen Shenzhen Real estate 100.00% Set-up
Xiamen Shenguomao Industrial City Smart
Shenzhen Xiamen Service industry 51.00% Set-up
Service Co., Ltd.
Vietnam Shenguomao Property Management
Shenzhen Shenzhen Service industry 100.00% Set-up
Co., Ltd.
Shenzhen SZPRD Yanzihu Development Co.,
Shenzhen Shenzhen Real estate 100.00% Set-up
Ltd.
Shenzhen Guangming Wuhe Real Estate Co.,
Shenzhen Shenzhen Real estate 100.00% Set-up
Ltd.
Dongguan Wuhe Real Estate Co., Ltd. Shenzhen Dongguan Real estate 100.00% Set-up
Business
combination
Shenzhen Property Management Co., Ltd. Shenzhen Shenzhen Real estate 100.00%
under the
same control
Business
combination
Shenzhen Shenwu Elevator Co., Ltd. Shenzhen Shenzhen Real estate 100.00%
under the
same control
Business
Shenzhen Shenfang Property Cleaning Co., combination
Shenzhen Shenzhen Real estate 100.00%
Ltd. under the
same control
Business
Shenzhen Foreign Trade Property combination
Shenzhen Shenzhen Real estate 100.00%
Management Co., Ltd. under the
same control
Business
Shenzhen Shenfubao Property Development combination
Shenzhen Shenzhen Real estate 100.00%
Co., Ltd. under the
same control
Business
Shenzhen Fubao Urban Resources combination
Shenzhen Shenzhen Real estate 60.00%
Management Co., Ltd. under the
same control
Business
Shenzhen Shenfubao Hydropower Municipal combination
Shenzhen Shenzhen Real estate 100.00%
Service Co., Ltd. under the
same control
Shenzhen Free Trade Zone Security Service Business
Shenzhen Shenzhen Real estate 100.00% combination
Co., Ltd.
under the
199
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
same control
Shenzhen Wuhe Urban Renewal Co., Ltd. Shenzhen Shenzhen Real estate 100.00% Set-up
Yangzhou Wuhe Real Estate Co., Ltd. Yangzhou Yangzhou Real estate 67.00% Set-up
Shzhen Tonglu Wuhe Investment
Shenzhen Shenzhen Real estate 100.00% Set-up
Development Co., Ltd.
Shenzhen International Trade Industry Space
Shenzhen Shenzhen Real estate 55.00% Set-up
Service Co., Ltd.
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:
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
Balance of non-
Shareholding attributable to the distributed to non-
controlling
Name of subsidiaries proportion of non- non-controlling controlling interests
interests at the
controlling interests interests for the for the current
period-end
current period period
Shenzhen Rongyao Real Estate
31.00% -12,942,884.64 4,549,221.78
Development Co., Ltd.
Yangzhou Wuhe Real Estate Co., Ltd. 33.00% -921,230.82 15,578,769.18
Yangzhou Shouxihu Jingyue Property
49.00% 968,766.90 6,498,415.70
Development Co., Ltd.
Shenzhen Guomao Shenlv Garden
10.00% 306,914.34 3,636,840.35
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
200
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Ending balance Beginning balance
Name of
subsidiaries Current Non-current Current Non-current Total Current Non-current Current Non-current Total
Total assets Total assets
assets assets liabilities liabilities liabilities assets assets liabilities liabilities liabilities
Shenzhen
Rongyao Real
5,463,41 148,966,84 5,360,025,9 237,683,82 5,360,025,9 5,597,709,7 4,650,977,9 137,576,24 4,788,554,2 1,730,779,9 3,001,348,0 4,732,128,0
Estate
7,860.24 5.59 67.25 9.61 67.25 96.86 76.49 7.00 23.49 83.83 89.90 73.73
Development
Co., Ltd.
Yangzhou
Shouxihu
Jingyue 20,620,8 21,578,014. 8,192,080.8 8,315,941.3 18,565,365. 1,106,169.8 19,671,535. 8,205,301.8 8,386,538.2
957,140.53 123,860.50 181,236.45
Property 73.64 17 1 1 94 9 83 2 7
Development
Co., Ltd.
Shenzhen
Guomao 37,872,8 38,560,113. 31,146,187. 31,331,448. 31,903,583. 32,681,816. 28,564,967. 28,564,967.
687,238.86 185,261.19 778,232.97
Shenlv Garden 74.87 73 72 91 82 79 87 87
Co., Ltd.
Yangzhou
Wuhe Real 1,003,11 1,004,041,1 956,832,73 956,832,73
923,562.28
Estate Co., 7,568.27 30.55 9.09 9.09
Ltd.
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 -41,751,240.79 -41,751,240.79 -69,082,966.63 -69,082,966.63
313,044,955.93 219,358,760.50
Development
Co., Ltd.
Yangzhou
Shouxihu
Jingyue
40,252,862.15 1,977,075.30 1,977,075.30 3,007,075.43 34,266,561.14 1,451,565.03 1,451,565.03 2,330,187.13
Property
Development
Co., Ltd.
Shenzhen
Guomao
21,954,911.42 3,111,815.90 3,111,815.90 -472,048.78 16,814,920.86 1,411,091.41 1,411,091.41 -181,629.00
Shenlv Garden
Co., Ltd.
Yangzhou
Wuhe Real -2,791,608.54 -2,791,608.54 -716,033.23
Estate Co., Ltd.
Other notes:
(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
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
(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
Place of investment to
Name operating Business nature
registration joint venture or
place Directly Indirectly associated
enterprise
Shenzhen Real Estate Jifa Warehousing Warehouse
Shenzhen Shenzhen 25.00% 25.00% Equity method
Co., Ltd. service
Tian’an International Building Property Property
Shenzhen Shenzhen 50.00% Equity method
Management Company of Shenzhen management
CSCEC Intelligent Parking Technology Commercial
Shenzhen Shenzhen 10.00% Equity method
Co., Ltd. services
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 6,110,801.95 58,848,700.91 77,995,898.01 57,331,775.19
Of which: Cash and
4,923,260.32 37,841,255.88 9,519,579.27 36,510,372.60
cash equivalents
Non-current assets 86,342,531.70 46,757.57 12,036,801.70 64,052.07
Total assets 92,453,333.65 58,895,458.48 90,032,699.71 57,395,827.26
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Current liabilities 2,992,163.07 28,404,537.12 2,999,369.48 27,437,899.29
Non-current liabilities 16,415,016.74 16,269,895.46
Total liabilities 2,992,163.07 44,819,553.86 2,999,369.48 43,707,794.75
Equity of non-
controlling interests
Equity attributable to
shareholders of the 89,461,170.58 14,075,904.62 87,033,330.23 13,688,032.51
Company as the parent
Net assets shares
calculated at the
44,730,585.29 7,037,952.31 43,516,665.12 6,844,016.25
shareholding
proportion
Adjusted items
- Goodwill
--Unrealized profit of
intra-company
transaction
--Other
Carrying value of
equity investment to 44,730,585.29 7,037,952.31 43,516,665.12 6,844,016.25
joint ventures
Fair values of equity
investments of joint
ventures with quoted
prices
Operating revenue 7,991,120.67 17,348,456.03 17,198,255.16 17,937,089.04
Financial expenses -10,286.81 -369,996.65 -18,157.77 -524,285.04
Income tax expense 810,230.79 136,495.54 2,981,339.69 128,978.80
Net profit 2,427,840.35 387,872.11 8,925,482.39 375,438.76
Net profit from
discontinued
operations
Other comprehensive
income
Total comprehensive
2,427,840.35 387,872.11 8,925,482.39 375,438.76
income
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 235,089,462.02
Non-current assets 3,014,735.77
Total assets 238,104,197.79
Current liabilities 77,308,723.18
Non-current liabilities 24,777.90
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Total liabilities 77,333,501.08
Equity of non-controlling interests
Equity attributable to shareholders of the
160,770,696.71
Company as the parent
Net assets shares calculated at the
16,077,069.67
shareholding proportion
Adjusted items
- Goodwill
--Unrealized profit of intra-company
transaction
--Other
Carrying value of investment to
16,077,069.67
associated enterprises
Fair value of equity investments in
associated enterprises with publicly
quoted prices
Operating revenue 169,285,776.61
Net profit 6,326,055.81
Net profit from discontinued operations
Other comprehensive income
Total comprehensive income 6,326,055.81
Dividends received from the associates
in the current period
Other notes:
(4) Summary Financial Information of Insignificant Joint Ventures or Associated Enterprises
Unit: RMB
Closing balance/amount of the current Opening balance/amount of the previous
period period
Joint venture:
Sum calculated by shareholding ratio of
each item
Associated enterprises:
Sum calculated by shareholding ratio of
each item
Other notes:
(5) Note to the Significant Restrictions on the Ability of Joint Ventures or Associated Enterprises to
Transfer Funds to the Company
(6) The Excess Loss of Joint Ventures or Associated Enterprises
Unit: RMB
The cumulative recognized The derecognized losses (or The accumulative
Name losses in previous the share of net profit) in unrecognized losses in current
accumulatively derecognized current period period
Other notes:
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
(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 Place of Proportion/Share portion
Name Business nature
place registration Directly Indirectly
Notes to holding proportion or share portion in common operation different from voting proportion:
For common operation as a single entity, basis of classifying as common operation
Other notes:
5. Equity in the Structured Entity Excluded in the Scope of Consolidated Financial Statements
Notes to the structured entity excluded in the scope of consolidated financial statements:
6. Other
X. Risks Associated with Financial Instruments
The Company is engaged in risk management to achieve balance between risks and returns, minimizing the negative effects of
risks on its operation performance and maximizing the interests of its shareholders and other equity investors. Based on that risk
management goal, the fundamental strategy of its risk management is to identify and analyze various risks facing the Company,
establish an appropriate risk bottom line, carry out risk management and monitor various risks in a timely and reliable manner to
control them within a restricted scope.
The Company faces various risks related to financial instruments in its routine activities, mainly including credit risk, liquidity risk
market risk. The management has reviewed and approved the policies of managing those risks, which are summarized as follows.
i. Classification of financial instruments
1. The carrying value of financial assets on the balance sheet date
(1) 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
Monetary capital 1,517,528,893.83 1,517,528,893.83
Notes receivable
Accounts receivable 419,933,915.30 419,933,915.30
Other receivables 639,903,523.33 639,903,523.33
Long-term receivables 22,651,454.07 22,651,454.07
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 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
Other equity instrument
887,838.64 887,838.64
investments
(2) 31 December 2021
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 2,280,821,442.11 2,280,821,442.11
Notes receivable 200,000.00 200,000.00
Accounts receivable 293,985,139.93 293,985,139.93
Other receivables 926,361,533.14 926,361,533.14
Long-term receivables 23,831,889.11 23,831,889.11
Other equity instrument
1,002,551.95 1,002,551.95
investments
2. The carrying value of financial liabilities on the balance sheet date
(1) 31 December 2022
Financial liabilities at fair Other financial
Item Total
value through profit or loss liabilities
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-current liabilities 196,645,408.45 196,645,408.45
Long-term borrowings 3,618,782,344.00 3,618,782,344.00
(2) 31 December 2021
Financial liabilities at fair Other financial
Item Total
value through profit or loss liabilities
Accounts payable 351,894,812.23 351,894,812.23
Other payables 1,027,622,090.94 1,027,622,090.94
68,984,050.47 68,984,050.47
Current portion of non-current liabilities
Long-term borrowings 3,524,500,000.00 3,524,500,000.00
ii. 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
206
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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-i, VII-v, VII-viii 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.
207
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Due to the Company merely trades with the authorized third party with good credit, the guarantee is not required. Credit risk
concentration is managed in accordance with the customers. As at 31 December 2022, there were certain credit concentration risks
in the Company, and 54.09% of the accounts receivable of the Company (54.61% on 31 December 2021) came from the top 5
customers by balance. The Company hasn’t held any guarantee or other credit enhancement for balance of accounts receivable.
The maximum credit risk exposure the Company undertook shall be the carrying value of each financial asset on balance sheet.
iii. Liquidity risk
Liquidity risk refers to the risk of fund shortage occurring when the Company fulfills the settlement obligation in the mode of cash
delivery or other financial assets. Liquidity risk may originate from the failure to sell financial assets at fair value as soon as
possible; or from the other party’s failure to pay off its contractual debts; or from the earlier maturity of debts; or from the failure
to generate the expected cash flow.
To control the risk, the Company comprehensively adopts bank loans as financing approach, appropriately combines long-term
and short-term financing modes and optimizes the financing structure to maintain the balance between financing sustainability and
flexibility. The Company has obtained the line of credit from a number of commercial banks to satisfy its operation fund needs and
capital expenditure.
Financial liabilities classified by remaining maturity
Amount at the end of this current period
Item Undiscounted
Carrying value Within 1 year 1-3 years Over 3 years
contract amount
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 196,645,408.45 196,645,408.45 196,645,408.45
liabilities
Total 5,938,796,973.42 6,318,849,640.80 2,498,480,993.10 3,648,297,102.30 172,071,545.40
(Continued)
Amount at the beginning of this current period
Item
Undiscounted
Carrying value Within 1 year 1-3 years Over 3 years
contract amount
Banking borrowings 3,524,500,000.00 4,196,417,741.29 186,248,876.28 3,603,862,408.90 406,306,456.11
Accounts payable 351,894,812.23 351,894,812.23 351,894,812.23
Other payables 1,027,622,090.94 1,027,622,090.94 1,010,079,414.96 17,542,675.98
Current portion of
other non-current 68,984,050.47 68,984,050.47 68,984,050.47
liabilities
Total 4,973,000,953.64 5,644,918,694.93 1,617,207,153.94 3,603,862,408.90 423,849,132.09
iv. 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
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
determine the proportion between the financial instruments with fixed interest rate and those with floating interest rate in
combination with market environment, and maintain an appropriate portfolio of financial instruments through regular review and
monitoring. The interest rate risk of cash flows facing the Company is mainly related to the bank loans calculated by floating
interest rate of the Company.
As at 31 December 2022, under the assumption of other fixed variables with 50 basis points changed in interest rate, the bank loan
of RMB3,809,915,668.00 (RMB3,587,800,000.00 on 31 December 2021) calculated at floating rate would not result in significant
influence on total profit and shareholders’ equity of the Company.
2. Foreign exchange risk
Foreign exchange risk refers to the risk that may lead to the changes of fair value of financial instruments or future cash flows due
to fluctuation in exchange rate. The risk of changes of exchange rate facing the Company is mainly related to foreign currency
monetary assets and liabilities of the Company. The Company operates in mainland China, and the main activities are recorded by
RMB. Thus, the foreign exchange market risk undertaken is insignificant for the Company.
XI. Disclosure of Fair Value
1. Ending Fair Value of Assets and Liabilities at Fair Value
Unit: RMB
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
I. Consistent Fair Value
-- -- -- --
Measurement
(III) Other equity instrument
887,838.64 887,838.64
investment
The total amount of assets
consistently measured at fair 887,838.64 887,838.64
value
II. Inconsistent Fair Value
-- -- -- --
Measurement
2. Basis for Determining the Market Price of Continuous and Non-continuous Level 1 Fair Value
Measurement Items
The other equity instrument held by the Company was shares of listed companies whose fair value was
determined based on the closing price on the stock exchange as of 30 December 2022.
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
209
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
6. Explain the Reason for Conversion and the Governing Policy when the Conversion Happens if
Conversion Happens among Consistent Fair Value Measurement Items at Different Levels
7. Changes in the Valuation Technique in the Current Period and the Reason for Such Changes
8. The Fair Value of Financial Assets and Financial Liabilities not Measured at Fair Value
9. Others
XII. Related Party and Related-party Transactions
1. Information Related to the Company as the Parent of the Company
Proportion of
Proportion of share
voting rights
Name of the held by the
Place of owned by the
Company as the Business nature Registered capital Company as the
registration Company as the
parent parent against the
parent against the
Company (%)
Company (%)
Limited liability
Shenzhen
company (solely- RMB30,009
Investment Shenzhen 56.96% 56.96%
owned by the million
Holdings Co., Ltd.
state)
Notes: Information on the Company as the parent
(1) The parent company of the Company is Shenzhen Investment Holdings Co., Ltd. (hereinafter referred to as “SIHC”), a newly-
established and organized state-owned capital investment company based on the original three state-owned assets management
companies in October 2004, and its main function is to manage the partial municipal state-owned companies according to the
authorization of Municipal SASAC. As a government department, Shenzhen State-owned Assets Supervision and Administration
Bureau manages Shenzhen Investment Holdings Co., Ltd. on behalf of People’s Government of Shenzhen Municipality.
(2) During the Reporting Period, SIHC, the controlling shareholder of the Company, transferred 38,037,890 ordinary shares of the
Company in unlimited circulation (representing 6.382% of the total share capital of the Company) held by SIHC to Shenzhen
State-owned Equity Management Co., Ltd. for free to replenish the social security funds. Shenzhen State-owned Equity
Management Co., Ltd. is a newly established wholly-owned subsidiary of SIHC to manage the transferred state-owned equity in a
special account. After the registration of the free transfer, SIHC held 301,414,637 shares of the Company, accounting for 50.575%
of the total share capital of the Company, and Shenzhen State-owned Equity Management Co., Ltd. held 38,037,890 shares of the
Company, accounting for 6.382% of the total share capital of the Company.
The final controller of the Company is Shenzhen State-owned Assets Supervision and Administration Committee of Shenzhen
Government.
Other notes:
2. Subsidiaries of the Company
Refer to Note IX-1.
3. Information on the Joint Ventures and Associated Enterprises of the Company
Refer to Note IX-3.
Information on other joint venture or associated enterprise of occurring related-party transactions with the Company in Current
Period, or forming balance due to related-party transactions made in previous period:
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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
Wholly-owned subsidiary of the Company as the parent of the
Shenzhen Shenfubao (Group) Co., Ltd.
Company
Shenzhen Xiangmihu International Exchange Center Wholly-owned subsidiary of the Company as the parent of the
Development Co., Ltd. Company
Shenzhen Bay Area Urban Construction and Development Co., Wholly-owned subsidiary of the Company as the parent of the
Ltd. Company
Shenzhen Environmental Protection Technology Group Co.,
Subsidiary of the Company as the parent of the Company
Ltd.
Shenzhen Shenzhen Hong Kong Science and Technology
Subsidiary of the Company as the parent of the Company
Innovation Cooperation Zone Development Co., Ltd.
Wholly-owned subsidiary of the Company as the parent of the
Shenzhen Bay Technology Development Co., Ltd.
Company
Shenzhen Guarantee Group Co., Ltd. Subsidiary of the Company as the parent of the Company
Shenzhen Infinova Limited Subsidiary of the Company as the parent of the Company
Shenzhen Convention & Exhibition Center Management Co., Wholly-owned subsidiary of the Company as the parent of the
Ltd. Company
Wholly-owned subsidiary of the Company as the parent of the
Shenzhen Sports Center Operation Management Co., Ltd.
Company
Wholly-owned subsidiary of the Company as the parent of the
China Shenzhen Foreign Trade (Group) Corp. Ltd.
Company
ShenZhen Special Economic Zone Real Estate & Properties
(Group) Co., Ltd. and its consolidated subsidiaries, except Subsidiary of the Company as the parent of the Company
where the context otherwise requires
GUOREN PROPERTY AND CASUALTY INSURANCE CO.,
Subsidiary of the Company as the parent of the Company
LTD.
Guosen Securities Co., Ltd. Subsidiary of the Company as the parent of the Company
Wholly-owned subsidiary of the Company as the parent of the
Shenzhen Shentou Property Development Co., Ltd.
Company
Shenzhen General Institute of Architectural Design and Wholly-owned subsidiary of the Company as the parent of the
Research Co., Ltd. Company
Shenzhen Water Planning and Design Institute Co., Ltd. Subsidiary of the Company as the parent of 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
Shenzhen Urban Construction Mingyuan Industrial Co., Ltd. Parent company’s grandson company
Wholly-owned sub-subsidiary of the Company as the parent of
Shenzhen Fubao Industrial Park Operation Co., Ltd.
the Company
Wholly-owned sub-subsidiary of the Company as the parent of
Shenzhen Shenfubao Eastern Investment Development Co., Ltd.
the Company
Shenzhen Shenfubao (Group) Tianjin Industrial Development Wholly-owned sub-subsidiary of the Company as the parent of
211
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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 Hi-tech Zone Development Construction Co., Ltd.
the Company
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 Shenyue United Investment Co., Ltd.
the Company
Shenzhen Shenfubao (Group) Tianjin Investment Development Wholly-owned sub-subsidiary of the Company as the parent of
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
Wholly-owned sub-subsidiary of the Company as the parent of
Shenzhen Infinova Smart Park Technology Co., Ltd.
the Company
Wholly-owned sub-subsidiary of the Company as the parent of
Shenzhen Meibainian Garment Co., Ltd.
the Company
Shenzhen Tianjun Industrial Co., Ltd. Parent company’s grandson company
Shenzhen Shendan Credit Enhancement Financing Guarantee
Parent company’s grandson company
Co., Ltd.
Wholly-owned sub-subsidiary of the Company as the parent of
Shenzhen Foreign Service Group Co., Ltd.
the Company
Shenzhen Free Trade Zone Life Service Co., Ltd. Parent company’s grandson company
Hebei Shenbao Investment Development Co., Ltd. Parent company’s grandson company
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 Infinova Renyong Information Co., Ltd.
the Company
Shenzhen Total Logistics Service Co., Ltd. Parent company’s grandson company
Shenzhen SDG Service Co., Ltd. Parent company’s grandson company
Shenzhen Wancheng Logistics Co., Ltd. Parent company’s grandson company
Research Institute of Tsinghua University in Shenzhen Parent company’s 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
Shenzhen Bay
Technology Management
86,518,273.32 81,000,000.00 Yes 79,121,747.44
Development Co., service fee
Ltd.
Shenzhen Tianjun Demolition
27,000,000.00 27,000,000.00 No
Industrial Co., Ltd. compensation
Shenzhen Foreign Outsourcing 9,312,805.11 - Yes
212
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Service Group Co., service charges
Ltd.
Shenzhen General
Institute of Project
Architectural architectural 8,161,599.83 - Yes 4,160,439.35
Design and design service
Research Co., Ltd.
ShenZhen Special
Economic Zone
Real Estate &
Properties (Group)
Management
Co., Ltd. and its 4,026,979.11 - Yes 3,930,479.73
service fee
consolidated
subsidiaries, except
where the context
otherwise requires
GUOREN
PROPERTY AND
CASUALTY Insurance 3,296,379.71 2,178,700.00 Yes 1,726,868.41
INSURANCE CO.,
LTD.
Shenzhen Shendan
Credit Enhancement
Guarantee ree 793,950.00 - Yes
Financing
Guarantee Co., Ltd.
Shenzhen SDG Property service
465,715.62 - Yes 244,679.11
Service Co., Ltd. fee
Shenzhen
Apparel
Meibainian Garment 402,743.64 - Yes
procurement
Co., Ltd.
Shenzhen
Shenfubao (Group) Catering services 210,975.00 - Yes 188,791.00
Co., Ltd.
Shenzhen Water
Consultant service
Planning and Design 113,320.00 - Yes
expense
Institute Co., Ltd.
Shenzhen Guarantee
Guarantee ree 26,548.11 - Yes
Group Co., Ltd.
Intelligent
Shenzhen Infinova
engineering - No 816,303.96
Limited
expense
Information of sales of goods and provision of labor service
Unit: RMB
Content of the
Amount for the previous
Related parties related-party Amount for the current period
period
transaction
Guoren Property and Casualty Insurance Property service
365,485.39 261,696.11
Co., Ltd. fee
Property service
Guosen Securities Co., Ltd. 1,188,060.37
fee
Hebei Shenbao Investment Development
Project payment 20,874,664.05 10,793,087.64
Co., Ltd.
Hebei Shenbao Investment Development Property service
10,585,122.24 6,826,046.08
Co., Ltd. fee
Shenzhen Shenyue United Investment Co., Property service
2,429,042.80 4,426,434.93
Ltd. fee
Property service
Shenzhen Guarantee Group Co., Ltd. 4,347,773.48 1,641,330.00
fee
213
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Shenzhen Hi-tech Zone Development Property service
1,844,495.70 1,592,696.30
Construction Co., Ltd. fee
Shenzhen Convention & Exhibition Center Property service
6,587,040.80 1,778,221.08
Management Co., Ltd. fee
ShenZhen Special Economic Zone Real
Estate & Properties (Group) Co., Ltd. and Property service
12,696,424.71 10,377,456.79
its consolidated subsidiaries, except where fee
the context otherwise requires
Property service
Shenzhen Total Logistics Service Co., Ltd. 2,500,524.01 669,875.70
fee
Shenzhen Shenzhen Hong Kong Science
Property service
and Technology Innovation Cooperation 1,707,998.32 431,567.61
fee
Zone Development Co., Ltd.
Shenzhen Shenzhen Hong Kong Science
Supervision
and Technology Innovation Cooperation 96,688.44
service fee
Zone Development Co., Ltd.
Shenzhen Urban Construction Mingyuan
Project payment 564,220.20
Industrial Co., Ltd.
Shenzhen Large Industrial Zone (Shenzhen
Export Processing Zone) Development Project payment 4,124,594.71 5,821,041.28
Management Group Co., Ltd.
Shenzhen Large Industrial Zone (Shenzhen
Property service
Export Processing Zone) Development 81,796.64 137,559.84
fee
Management Group Co., Ltd.
Shenzhen Fubao Industrial Park Operation
Project payment 255,834.10 852,453.80
Co., Ltd.
Shenzhen Fubao Industrial Park Operation Property service
98,543.56 119,081.39
Co., Ltd. fee
Shenzhen Environmental Protection
Project payment 212,270.67 737,860.57
Technology Group Co., Ltd.
Shenzhen Environmental Protection Property service
6,269,868.04 5,575,777.64
Technology Group Co., Ltd. fee
Shenzhen Shenfubao (Group) Tianjin
Project payment 201,939.74
Industrial Development Co., Ltd.
Shenzhen Shenfubao (Group) Tianjin Property service
1,095,907.44 1,823,813.14
Industrial Development Co., Ltd. fee
Shenzhen Shenfubao (Group) Tianjin Property service
8,068,487.11 8,678,718.12
Investment Development Co., Ltd. fee
Shenzhen Shenfubao (Group) Co., Ltd. Project payment 1,330,275.23
Property service
Shenzhen Shenfubao (Group) Co., Ltd. 4,785,217.03 4,760,067.50
fee
Funding
Shenzhen Shenfubao (Group) Co., Ltd. occupancy -233,337.05 1,053,272.32
expense
Shenzhen Shenfubao Eastern Investment
Project payment 67,252.15 380,733.95
Development Co., Ltd.
Shenzhen Shenfubao Eastern Investment Property service
170,701.27 635,082.10
Development Co., Ltd. fee
Shenzhen Shantou Special Cooperation
Property service
Zone Branch of Shenzhen Water Planning 22,050.00
fee
and Design Institute Co., Ltd.
Shenzhen Sports Center Operation Property service
687,914.48
Management Co., Ltd. fee
Shenzhen Investment Holdings Co., Ltd. Project payment 7,209,951.08 1,267,596.34
Shenzhen Investment Holdings Co., Ltd. Service expense 1,886,792.46 1,980,443.98
Shenzhen Investment Holdings Co., Ltd. Funding 174,206.14 905,992.47
214
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
occupancy
expense
Property service
Shenzhen Investment Holdings Co., Ltd. 7,584,483.75
fee
Shenzhen Bay Area International Hotel Co., Property service
75,100,961.12
Ltd. fee
Shenzhen Bay Wanli Hotel Branch of
Property service
Shenzhen Wuzhou Hotel Management Co., 360,707.44 298,892.38
fee
Ltd.
Shenzhen Bay Wanyi Hotel Branch of
Property service
Shenzhen Wuzhou Hotel Management Co., 235,915.67 201,669.81
fee
Ltd.
Property service
Shenzhen SME Venture Capital Co., Ltd. 872,990.19 1,347,253.40
fee
Shenzhen Bay (Baoding) Innovation Property service
354,142.48 202,133.32
Development Co., Ltd. fee
Shenzhen Bay Technology Development Property service
54,562,406.82 56,337,675.04
Co., Ltd. fee
Shenzhen Bay Technology Development Consultant
541,666.98
Co., Ltd. service expense
Shenzhen Bay Area Urban Construction and
Project payment 686,767.33 744,795.72
Development Co., Ltd.
Shenzhen Bay Area Urban Construction and Property service
2,977,659.03 2,515,433.40
Development Co., Ltd. fee
Shenzhen Xiangmihu International
Project payment 1,419,537.05 67,434.49
Exchange Center Development Co., Ltd.
Shenzhen Xiangmihu International Property service
2,423,260.33
Exchange Center Development Co., Ltd. fee
Property service
Shenzhen Infinova Limited 289,916.74 286,508.61
fee
Shenzhen Infinova Smart Park Technology Consultant
512,000.00
Co., Ltd. service expense
China Shenzhen Foreign Trade (Group) Property service
2,763,006.30 1,804,718.93
Corp. Ltd. fee
China Shenzhen Foreign Trade (Group) Supervision
618,867.93
Corp. Ltd. service fee
Shenzhen Tsinghua University Research Property service
351,203.22 285,775.44
Institute fee
Notes to acquisition of goods and reception of labor service
(2) Information on Related-party Trusteeship/Contract
Lists of trusteeship/contract of the Company:
Unit: RMB
Income
Name of the Name of the
Pricing recognized in
entruster/contract entrustee/ Type Start date Due date
basis this current
ee contractor
period
ShenZhen
Shenzhen
Properties & Investmen
Shentou Property Market
Resources t 6 November 2019 5 November 2025 44,057,444.98
Development pricing
Development properties
Co., Ltd.
(Group) Ltd.
Shenzhen Shenzhen Real Market
Shenfubao Shenfubao Estate, 1 January 2021 31 December 2022 1,476,804.42
pricing
(Group) Co., Ltd. Property engineerin
215
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Development g
Co., Ltd.
Shenzhen
Shenzhen Fubao
Shenfubao Property
Industrial Park Market
Property maintenan 1 January 2021 31 December 2022 142,317.25
Operation Co., pricing
Development ce project
Ltd.
Co., Ltd.
Shenzhen Free
Shenzhen
Trade Zone Market
Shenfubao Property 1 January 2021 31 December 2022 853,210.46
Security Service pricing
(Group) Co., Ltd.
Co., Ltd.
Shenzhen
Shenzhen Shenfubao
Market
Shenfubao Hydropower Property 1 January 2021 31 December 2022 1,238,467.02
pricing
(Group) Co., Ltd. Municipal
Service Co., Ltd.
Notes:
Lists of entrust/contractee
Unit: RMB
Charge
Name of the Name of the
recognized in
entruster/contra entrustee/ Type Start date Due date Pricing basis
this current
ctee contractor
period
Notes:
(3) Information on Related-party Lease
The Company was lessor:
Unit: RMB
The lease income confirmed The lease income confirmed
Name of lessee Category of leased assets
in the current period in the previous period
Shenzhen Bay Wanyi Hotel
Branch of Shenzhen Wuzhou Investment properties 1,369,729.39 504,175.20
Hotel Management Co., Ltd.
Shenzhen Bay Wanli Hotel
Branch of Shenzhen Wuzhou Investment properties 1,891,531.05 616,214.13
Hotel Management Co., Ltd.
The Company was lessee:
Unit: RMB
Rental expense of Variable lease payments
simplified short-term that are not covered in
Interest expense on Added right-of-use
leases and low-value the measurement of the Rent payable
lease liabilities borne assets
Category asset leases (if lease liabilities (if
Name of lessor of leased applicable) applicable)
assets Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount
for the for the for the for the for the for the for the for the for the for the
current previous current previous current previous current previous current previous
period period period period period period period period period period
Shenzhen
Shentou 1,801,30
Investment
Property 796,404.00 388,326.60 139,419.23 129,955.05 614,554.40
properties 0.23
Development
Co., Ltd.
Shenzhen Hi- Investment 295,875.
104,160.00
tech Zone properties 519,166.28 50,400.00 8,533.45 6,723.46
35
Development
216
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Construction
Co., Ltd.
Shenzhen
Large
Industrial
Zone
(Shenzhen
Export Investment
Processing properties 3,690.77
Zone)
Development
Management
Group Co.,
Ltd.
ShenZhen
Special
Economic
Zone Real
Estate &
Properties
(Group) Co., Investment 1,782,328.
Ltd. and its properties 640,523.85 491,428.54 55,000.00 8,020.54
10
consolidated
subsidiaries,
except where
the context
otherwise
requires
Notes:
(4) Information on Related-party Guarantee
The Company was guarantor:
Unit: RMB
Execution
Secured party Amount of guarantee Start date End date
accomplished or not
The Company was secured party
Unit: RMB
Execution
Guarantor: Amount of guarantee Start date End date
accomplished or not
Guoren P&C 82,093,413.89 26 June 2022 30 April 2024 Not
Shenzhen Shendan
Zengxin Financing 16,750,000.00 29 March 2022 28 March 2025 Not
Guarantee Co., Ltd.
Shenzhen Shendan
Zengxin Financing 36,850,000.00 29 March 2022 28 March 2026 Not
Guarantee Co., Ltd.
Shenzhen Shendan
Zengxin Financing 13,400,000.00 29 March 2022 28 March 2027 Not
Guarantee Co., Ltd.
Shenzhen Credit
Guarantee Group Co., 2,895,117.51 1 May 2022 1 May 2023 Not
Ltd.
Notes:
(5) Information on Inter-bank Lending of Capital of Related Parties
Unit: RMB
Related parties Amount Start date Maturity date Note
217
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Borrowing
Lending
(6) Information on Assets Transfer and Debt Restructuring by Related Party
Unit: RMB
Content of the related- Amount for the current Amount for the previous
Related parties
party transaction period period
Transfer of fixed
Shenzhen Investment Holdings Co., Ltd. 171,582.53
assets
Acquisition of equity
Shenzhen Shenfubao (Group) Co., Ltd. 86,923,058.15
interest
ShenZhen Special Economic Zone Real
Acquisition of equity
Estate & Properties (Group) Co., Ltd. and 206,390,636.61
interest
Shenzhen SPG Investment Co., Ltd.
China Shenzhen Foreign Trade (Group) Acquisition of equity
20,902,006.86
Corp. Ltd. interest
(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
15,149,368.18 15,959,991.00
personnel
(8) Other Related-party Transactions
6. Accounts Receivable and Payable of Related Party
(1) Accounts Receivable
Unit: RMB
Ending balance Beginning balance
Project
Related parties
name Bad debt Bad debt
Carrying amount Carrying amount
provision provision
Accounts Hebei Shenbao Investment
15,856,697.13 475,700.91 2,906,269.30 66,647.54
receivable Development Co., Ltd.
Shenzhen Shenyue United
1,545,493.83 46,364.81
Investment Co., Ltd.
Shenzhen Guarantee
69,764.97 2,092.95 484,328.21 14,529.85
Group Co., Ltd.
Shenzhen Hi-tech Zone
Development 3,292,961.84 177,657.15 2,038,315.65 75,908.99
Construction Co., Ltd.
Shenzhen Convention &
Exhibition Center 1,379,512.79 55,256.38 1,170,565.00 48,987.95
Management Co., Ltd.
ShenZhen Special
Economic Zone Real
Estate & Properties
(Group) Co., Ltd. and its 10,072,563.13 674,112.86
consolidated subsidiaries,
except where the context
otherwise requires
Shenzhen Total Logistics
779,745.46 23,392.36 395,202.42 11,856.07
Service Co., Ltd.
218
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Shenzhen Shenzhen Hong
Kong Science and
Technology Innovation 114,435.00 3,433.05 101,072.00 3,032.16
Cooperation Zone
Development Co., Ltd.
Shenzhen Large Industrial
Zone (Shenzhen Export
Processing Zone)
1,811,138.85 104,774.17 52,000.00
Development
Management Group Co.,
Ltd.
Shenzhen Fubao Industrial
307,714.39 9,231.43
Park Operation Co., Ltd.
Shenzhen Environmental
Protection Technology 1,331,881.42 39,956.44 539,992.41
Group Co., Ltd.
Shenzhen Shenfubao
(Group) Tianjin Industrial 917,263.67 66,998.66 1,000,780.50
Development Co., Ltd.
Shenzhen Shenfubao
(Group) Tianjin
2,454,324.58 88,615.34 4,700,758.68
Investment Development
Co., Ltd.
Shenzhen Shenfubao
3,699,118.44 145,973.55 1,323,864.34
(Group) Co., Ltd.
Shenzhen Shenfubao
Eastern Investment 55.70 1.67
Development Co., Ltd.
Shenzhen Shentou
Property Development 1,500,297.75 45,008.93 3,618,388.27 108,551.65
Co., Ltd.
Shenzhen Investment
6,623,892.25 218,945.16 1,876,454.12 20,087.62
Holdings Co., Ltd.
Shenzhen Bay Area
International Hotel Co., 51,312,666.65 1,539,380.00
Ltd.
Shenzhen Bay (Baoding)
Innovation Development 116,061.39 3,481.84 28,814.40 864.43
Co., Ltd.
Shenzhen Bay Technology
131,203,332.93 3,936,099.99 112,281,758.95 3,368,452.77
Development Co., Ltd.
Shenzhen Bay Area Urban
Construction and 1,013,741.87 2,700.00
Development Co., Ltd.
Shenzhen Xiangmihu
International Exchange
811,111.70 24,333.35
Center Development Co.,
Ltd.
Shenzhen Infinova Smart
320,000.00 9,600.00
Park Technology Co., Ltd.
Shenzhen Tsinghua
University Research 113,107.19 3,393.22 66,034.33 1,981.03
Institute
Total 235,633,141.06 7,693,804.22 133,598,340.45 3,723,600.06
Contractual Hebei Shenbao Investment
373,225.04
assets Development Co., Ltd.
Shenzhen Large Industrial 337,422.67
Zone (Shenzhen Export
219
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Processing Zone)
Development
Management Group Co.,
Ltd.
Shenzhen Fubao Industrial
26,457.15
Park Operation Co., Ltd.
Shenzhen Environmental
Protection Technology 28,385.93
Group Co., Ltd.
Shenzhen Shenfubao
43,500.00
(Group) Co., Ltd.
Shenzhen Shenfubao
Eastern Investment 14,649.15
Development Co., Ltd.
Shenzhen Investment
139,004.56
Holdings Co., Ltd.
Shenzhen Bay Area Urban
Construction and 50,169.55
Development Co., Ltd.
Shenzhen Xiangmihu
International Exchange
46,418.86
Center Development Co.,
Ltd.
Total 1,059,232.91
Other non-
Shenzhen Shenfubao
current 42,726,200.00
(Group) Co., Ltd.
assets
Total 42,726,200.00
Shenzhen Hi-tech Zone
Other
Development 121,714.92 5,080.85 20,420.00 612.60
receivables
Construction Co., Ltd.
ShenZhen Special
Economic Zone Real
Estate & Properties
(Group) Co., Ltd. and its 100,000.00 10,000.00 20,822,314.85
consolidated subsidiaries,
except where the context
otherwise requires
Shenzhen Large Industrial
Zone (Shenzhen Export
Processing Zone)
2,583.54 77.51 3,613.60
Development
Management Group Co.,
Ltd.
Shenzhen Fubao Industrial
11,950.00
Park Operation Co., Ltd.
Shenzhen Qianhai
Advanced Information 10,720,575.27 321,617.26 8,430,575.27 252,917.26
Service Co., Ltd.
Shenzhen Shenfubao
59,759,134.93
(Group) Co., Ltd.
Shenzhen Shenfubao
Eastern Investment 3,533.26
Development Co., Ltd.
Shenzhen Shentou
Property Development 81,233.00 81,233.00 81,233.00 81,233.00
Co., Ltd.
Shenzhen Investment 685,740.90 112,893.70 12,421,260.83 46,829.92
220
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Holdings Co., Ltd.
Shenzhen Xinhai Holding
201,499,990.18 6,044,999.71 401,499,990.18 6,044,999.71
Co., Ltd.
Shenzhen Xinhai Rongyao
Real Estate Development 375,068,984.55 11,252,069.54 355,026,166.83 10,650,785.01
Co., Ltd.
Shenzhen Tianjun
10,000,000.00 10,000,000.00
Industrial Co., Ltd.
Shenzhen Bay Technology
4,159,687.50 124,790.63 11,809,060.35 419,496.75
Development Co., Ltd.
Shenzhen Wufang
Ceramics Industrial Co., 1,747,264.25 1,747,264.25 1,747,264.25 1,747,264.25
Ltd.
China Shenzhen Foreign
3,734.83 373.48 1,410,306.11
Trade (Group) Corp. Ltd.
Shenzhen Wancheng
8,005.74
Logistics Co., Ltd.
Total 604,191,508.94 19,700,399.93 883,054,829.20 19,244,138.50
Note 1: In January 2022, the Company completed the acquisition of equity interests in Shenzhen Property Management Co., Ltd.
("Shenzhen Property"), a subsidiary of ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. ("SPG "); in
February 2022, the Company completed the acquisition of equity interests in Shenzhen Free Trade Zone Security Service Co., Ltd.
(“Security Company”), Shenzhen Shenfubao Property Development Co., Ltd. (“Shenfubao Property”) and Shenzhen Shenfubao
Hydropower Municipal Service Co., Ltd. (“Hydropower Company”) which are subsidiaries of Shenzhen Shenfubao (Group) Co.,
Ltd. (“Shenfubao Group”), and Shenzhen Foreign Trade Property Management Co., Ltd. (“Foreign Trade Property”) which is a
subsidiary of China Shenzhen Foreign Trade (Group) Corp. Ltd. According to the requirements of Shenzhen SASAC's Guidance
on Strengthening Bank Account Management and Comprehensive Supervision of Capital Risk Prevention of Municipal State-
owned Enterprises (SZASAC [2014] No. 79), SPG, Shenfubao Group and Shenzhen Investment Holdings Co., Ltd. ("SIHC ")
centralized the management of some funds of their subsidiaries. Prior to the acquisition, Shenzhen Property pooled and deposited
part of its funds with SPG; Shenfubao Property, Hydropower Company and Security Company pooled and deposited part of their
funds with Shenfubao Group; and Foreign Trade Property pooled and deposited part of their funds with SIHC, thus forming non-
operating fund transactions between the Company and SPG, Shenfubao Group and SIHC. The non-operating capital transactions
with SPG, Shenfubao Group and SIHC for historical reasons at the beginning of 2022 were RMB20,722,314.85,
RMB56,595,413.13 and RMB12,312,112.39, respectively. As of 31 December 2022, the Company has settled the non-operating
capital transactions with SPG, Shenfubao Group and SIHC, and there is no situation of related parties occupying the Company's
funds.
Note 2: 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 Bangling 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.
(2) Accounts Payable
Unit: RMB
Project
Related parties Ending carrying amount Beginning carrying amount
name
Accounts
Shenzhen Shentou Property Development Co., Ltd. 787,002.77 887,042.50
payable
Shenzhen Infinova Renyong Information Co., Ltd. 25,203.84
221
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Shenzhen Hi-tech Zone Development Construction
252,198.81
Co., Ltd.
Shenzhen General Institute of Architectural Design
1,199,653.20 1,666,199.82
and Research Co., Ltd.
Shenzhen SDG Service Co., Ltd. 282,144.00 17,000.00
Total 2,294,003.81 2,822,441.13
Other
Shenzhen Guarantee Group Co., Ltd. 1,494,841.29 396,462.16
payables
Shenzhen Free Trade Zone Life Service Co., Ltd. 4,850.00 4,850.00
Shenzhen Fubao Industrial Park Operation Co.,
11,579.00 250,890.00
Ltd.
Shenzhen Shenfubao (Group) Co., Ltd. 2,503,870.62 146,410.00
Shenzhen Shentou Property Development Co., Ltd. 10,126,517.16 10,874,467.40
Shenzhen Bay Wanli Hotel Branch of Shenzhen
687,525.00 654,786.00
Wuzhou Hotel Management Co., Ltd.
Shenzhen Bay Wanyi Hotel Branch of Shenzhen
562,521.00 535,734.00
Wuzhou Hotel Management Co., Ltd.
Shenzhen SME Venture Capital Co., Ltd. 339,760.59 339,760.58
Shenzhen Bay Technology Development Co., Ltd. 179,966,045.36 90,354,189.38
Shenzhen Bay Area Urban Construction and
360,752.18 360,752.18
Development Co., Ltd.
Shenzhen Infinova Limited 144,219.02 144,219.02
China Shenzhen Foreign Trade (Group) Corp. Ltd. 265,018.43
Shenzhen Real Estate Jifa Warehousing Co., Ltd. 42,296,665.14 38,796,665.14
Tian’an International Building Property
5,214,345.90 5,214,345.90
Management Company of Shenzhen
Shenzhen Investment Holdings Co., Ltd. 868,934.14 769,277.91
Guosen Securities Co., Ltd. 228,813.86
Shenzhen Foreign Service Group Co., Ltd. 1,101,949.83
Yangzhou Lvfa Real Estate Co., Ltd. 313,705,372.89
Total 559,654,767.55 149,071,623.53
7. Commitments of Related Party
8. Other
XIII. Stock Payment
1. The Overall Situation of Share-based Payments
□Applicable Not applicable
2. Equity-settled Share-based Payments
□Applicable Not applicable
3. Cash-settled Share-based Payments
□Applicable Not applicable
222
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
4. Modification and Termination of Share-based Payments
5. Others
XIV. 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 large
2,661,507,526.23 136,224,550.92
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 amounting to
RMB93.81 million from Jiyong Company in full in past years for the transfer of Jiabin Building. On 31 October 2018, Shenzhen
Intermediate People’s Court made a civil award and ruled that the Company’s application for the bankruptcy of Jiyong Company
would not be accepted. The Company appealed against the ruling. On 29 April 2019, the Guangdong Provincial Higher People’s
Court ruled to reject the Company’s appeal and maintain the original ruling. As of the issuance date of the report, there is no new
progress in the case.
(2) The 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. for Software Park I
In March 2021, the ITC Technology Park Company received arbitration notices respectively of the case [2021]
Shenguozhongshou [2021] Shenguozhongshou No. 1063. The Fourth Owners’ Committee of Shenzhen Nanshan District Software
Park applied for the following award: 1. Respondent shall return RMB9,893,677.82 and fund occupation fee of RMB3,272,665.99
(temporarily calculated from 1 July 2012 to 31 January 2021), totaling RMB13,166,343.81; 2. respondent shall bear the attorney’s
fee of RMB30,000.00.
On 21 August 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 5 September 2022, Jun & Partners responded to the Special Audit Report of Case No. 1063.
As of 24 March 2023, Case No. 1063 is awaiting the outcome of the determination.
(3) Litigation case about Shenzhen Basepoint Intelligent Co., Ltd.
On 20 August 2017, Shenzhen Facility Management Community Technology Co., Ltd. signed Software Service Contract on China
Merchants Property Intelligent Facility Management Platform with China Merchants. The company procured a RMB3 million
facility management system from Basepoint for the project. The Basepoint shall provide 31 projects, but only 11 projects passed
the acceptance in the actual implementation. The Company considers that the facility management system provided by Basepoint
needs to meet the contract’s requirements and currently pays Basepoint only RMB60,000. On 15 December 2021, Basepoint sued
Shenzhen Facility Management Community Technology Co., Ltd. for RMB500,000 for the implementation costs related to the
cooperation project it had already incurred.
223
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
The first trial of the lawsuit has been concluded, and the facility house was awarded RMB3 million to integrate the same amount
into the Basepoint. The Company appealed the result of the first trial for a second trial, which has yet to be held. As expressed in
the legal opinion of Guangdong Sincere Partners & Attorneys on the second trial of the case, the second trial of the case will
probably change the verdict, reverse the ruling of the first trial on the payment of RMB3 million purchase cost and interest by the
facility home to the Basepoint or remand for retrial due to unclear facts and the need to find out the facts.
(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 Xuansheng 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, pending the second trial.
(5) Others
As a real estate developer, the Company provides mortgage loan guarantees and pays loan deposits for commercial housing
purchasers according to the operation practice of the real estate industry. By 31 December, 2022, the balance of the deposit not
discharged with guarantee was RMB1,131,041.58, which would be discharged when the mortgage loans are paid off.
(2) Explanation shall be given even if there is no significant contingency for the Company to disclose
There was no significant contingency in the Company to disclose.
3. Others
XV. Events after Balance Sheet Date
1. Significant Non-adjustment Matters
Unit: RMB
224
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Influence number to the
Reason of inability to
Item Contents financial position and
estimate influence number
operating results
2. Distribution of Profit
Unit: RMB
Profit or dividend to be distributed 215,148,452.21
Profit or dividend announced to issue after review and approval 215,148,452.21
3. Sales Return
4. Notes to Other Events after Balance Sheet Date
(I) Distribution of profit after the balance sheet date
On 24 March 2023, the 17th meeting of the 10th Board of Directors of the Company approved the profit distribution plan for 2022
as follows: a cash dividend of RMB3.61 (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 2022. The total cash dividends will be RMB215,148,452.21, and the remaining
undistributed profits will be carried forward to the next year. The plan will be implemented after approval by the Shareholders'
Meeting.
(II) Matters on application for comprehensive credit line and financing line in 2023
On 24 March 2023, the 17th meeting of the 10th Board of Directors of the Company approved the Company's plan to apply for
comprehensive credit line and financing line. With the capital needs for production, business operation and investment expansion
in 2023, the Company plans to apply for comprehensive credit financing line to various financial institutions by virtue of its own
land use rights, buildings, equipment, inventory, rights to earnings, and pledge of accounts receivable. The total amount of the
above quota will not exceed RMB6.8 billion (including new, extended and renewed loans), which shall be used for financing
businesses including but not limited to immediate fund loans, project loans, fixed asset loans, annexation loans, guarantee,
financial leasing and financing after-sales repurchase. The actual credit and financing types, amounts, terms, interest rates and fees
are ultimately subjected to the financing line actually approved by the financing institutions, or subjected to the financing
agreements actually signed.
XVI. Other Significant Events
1. The Accounting Errors Correction in Previous Period
(1) Retrospective Restatement
Unit: RMB
Name of the influenced report
Content Processing program items during comparison Accumulative impact
period
(2) Prospective Application
Reason for adopting prospective
Content Processing program
application
2. Debt Restructuring
225
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
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
Other notes:
6. Segment Information
(1) Determination Basis and Accounting Policies of Reportable Segment
In accordance with the internal organization structure, management requirements and internal report system, the
Company identifies the reportable segment based on the business segment, and assesses the operational
performance of real estate sales, property management and catering service. The assets and liabilities sharing
with other segments shall be proportionally distributed among segments by scales.
(2) The Financial Information of Reportable Segment
Unit: RMB
Offset
Item Real estate Property management Leasing business among Total
segment
Operating revenue 1,913,674,526.31 1,666,961,878.32 128,032,642.22 3,708,669,046.85
Operating cost 433,443,568.87 1,441,477,771.44 103,856,280.91 1,978,777,621.22
Total assets 13,547,537,679.90 1,749,638,234.25 503,111,696.25 15,800,287,610.40
Total liabilities 9,731,844,737.86 1,389,199,802.72 210,431,999.39 11,331,476,539.97
(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
226
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
XVII. Notes of Main Items in the Financial Statements of the Company as the Parent
1. Accounts Receivable
(1) Listed by Category
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Category Carrying Carrying
Withdrawal value Withdrawal value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Accounts
receivable
withdrawal
96,702,269. 96,702,269. 96,702,269. 96,702,269.
of Bad debt 94.67% 100.00% 0.00 97.65% 100.00% 0.00
40 40 40 40
provision
separately
accrued
Of which:
Accounts
receivable
withdrawal 5,447,776.9 5,137,042.7 2,324,735.4 2,223,974.6
5.33% 310,734.28 5.70% 2.35% 100,760.83 4.33%
of bad debt 9 1 9 6
provision of
by group
Of which:
102,150,046 97,013,003. 5,137,042.7 99,027,004. 96,803,030. 2,223,974.6
Total 100.00% 94.97% 100.00% 97.75%
.39 68 1 89 23 6
Bad debt provision separately accrued: RMB96,702,269.40
Unit: RMB
Ending balance
Name Withdrawal
Carrying amount Bad debt provision Reason for withdraw
proportion
Shenzhen Jiyong Properties &
Involved in lawsuit and
Resources Development 93,811,328.05 93,811,328.05 100.00%
unrecoverable
Company
Shenzhen Tewei Industry Co., Long aging and expected
2,836,561.00 2,836,561.00 100.00%
Ltd. unrecoverable
Luohu District Economic Long aging and expected
54,380.35 54,380.35 100.00%
Development Company unrecoverable
Total 96,702,269.40 96,702,269.40
Bad debt provision accrued by item:
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion Reason for withdraw
Bad debt provision accrued by item:
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion Reason for withdraw
Withdrawal of bad debt provision by group: RMB310,734.28
Unit: RMB
227
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Portfolio of credit risk
5,447,776.99 310,734.28 5.70%
features
Total 5,447,776.99 310,734.28
Notes to the determination basis for the group:
Withdrawal of bad debt provision by group: RMB310,734.28
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Within 1 year (including 1
4,013,380.50 120,401.42 3.00%
year)
1-2 years (including 2 years) 1,312,285.45 131,228.55 10.00%
2-3 years (including 3 years) 9,756.09 2,926.83 30.00%
3-4 years (including 4 years) 112,354.95 56,177.48 50.00%
Total 5,447,776.99 310,734.28
Notes to the determination basis for the group:
Please refer to the relevant information of disclosure of bad debt provision of other accounts receivable if adopting the general
mode of expected credit loss to withdraw bad debt provision of accounts receivable.
□Applicable Not applicable
Disclosure by aging
Unit: RMB
Aging Carrying amount
Within 1 year (including 1 year) 4,013,380.50
1 to 2 years 1,312,285.45
2 to 3 years 9,756.09
Over 3 years 96,814,624.35
3 to 4 years 112,354.95
Over 5 years 96,702,269.40
Total 102,150,046.39
(2) 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 96,702,269.40
accrued by item
Withdrawal of
bad debt
100,760.83 209,973.45 310,734.28
provision by
group
228
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Total 96,803,030.23 209,973.45 97,013,003.68
Of which significant amount of recovered or transferred-back bad debt provision for the current period:
Unit: RMB
Name of the entity Amount reversed or recovered Way of recovery
(3) 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
Written-off Reason for
Name of the entity Nature procedures because of related-
amount verification
performed party transactions
Notes to verification of accounts receivable:
(4) Top 5 of the Ending Balance of the Accounts Receivable Collected according to Arrears Party
Unit: RMB
Proportion to total ending balance of Ending balance of
Name of the entity Ending balance
accounts receivable bad debt provision
Shenzhen Jiyong Properties &
Resources Development 93,811,328.05 91.84% 93,811,328.05
Company
Shenzhen Tewei Industry Co.,
2,836,561.00 2.78% 2,836,561.00
Ltd.
Shenzhen Investment Holdings
2,000,000.00 1.96% 60,000.00
Co., Ltd.
Shenzhen Feihuang Industrial
769,919.05 0.75% 76,991.91
Co., Ltd.
Shenzhen Meige Xiazi Catering
542,366.40 0.53% 54,236.64
Management Co., Ltd.
Total 99,960,174.50 97.86%
(5) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement
of Accounts Receivable
Other notes:
(6) Accounts Receivable Derecognized due to the Transfer of Financial Assets
2. Other Receivables
Unit: RMB
Item Ending balance Beginning balance
Dividend receivable 151,433,108.41
Other receivables 5,010,963,761.04 2,412,506,681.28
Total 5,162,396,869.45 2,412,506,681.28
229
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
(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) Withdrawal of Bad Debt Provision
□Applicable Not applicable
(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) Withdrawal of Bad Debt Provision
□Applicable Not applicable
Other notes:
(3) Other Receivables
1) Category of Other Receivables by Account Nature
Unit: RMB
Nature Ending carrying amount Beginning carrying amount
Guaranteed deposit 2,537,789.00 2,328,581.00
Payment on behalf
External intercourse funds 23,374,171.34 56,305,486.73
Intercourse funds to subsidiary 5,017,542,623.59 2,386,210,528.77
Total 5,043,454,583.93 2,444,844,596.50
2) Withdrawal of Bad Debt Provision
Unit: RMB
First stage Second stage Third stage
Bad debt provision Expected credit loss Expected loss in the Expected loss in the Total
in the next 12 duration (credit duration (credit
months impairment not impairment
230
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
occurred) occurred)
Balance of 1 January 2022, 8,844,588.14 23,493,327.08 32,337,915.22
Balance of 1 January 2022 in
the current period
Withdrawal of the current period 152,907.67 152,907.67
Balance as at 31 December 2022 8,997,495.81 23,493,327.08 32,490,822.89
Changes of carrying amount with significant amount changed of loss provision in the current period
□Applicable Not applicable
Disclosure by aging
Unit: RMB
Aging Carrying amount
Within 1 year (including 1 year) 5,011,106,446.45
1 to 2 years 51,049.05
2 to 3 years 69,600.00
Over 3 years 32,227,488.43
4 to 5 years 50,000.00
Over 5 years 32,177,488.43
Total 5,043,454,583.93
3) 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 Ending balance
balance Withdrawal Verification Others
recovered
Other
32,337,915.22 152,907.67 32,490,822.89
receivables
Total 32,337,915.22 152,907.67 32,490,822.89
Of which the bad debt provision recovered or transferred-back with significant amount during the current period:
Unit: RMB
Name of the entity Amount reversed or recovered Way of recovery
4) 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
Written-off Reason for
Name of the entity Nature procedures because of related-
amount verification
performed party transactions
Notes to the verification of other receivables:
5) Top 5 of the Ending Balance of Other Receivables Collected according to the Arrears Party
Unit: RMB
231
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Proportion
to total
Ending
ending
balance of
Name of the entity Nature Ending balance Aging balance of
bad debt
other
provision
receivable
s%
Dongguan Wuhe Real Estate Co., Intercourse funds to Within 1
2,113,760,170.00 41.91%
Ltd. subsidiary year
Shenzhen Guangming Wuhe Real Intercourse funds to Within 1
1,621,000,000.00 32.14%
Estate Co., Ltd. subsidiary year
Yangzhou Wuhe Real Estate Co., Intercourse funds to Within 1
640,578,418.90 12.70%
Ltd. subsidiary year
Shenzhen Huangcheng Real Estate Intercourse funds to Within 1
460,533,918.98 9.13%
Co., Ltd. subsidiary year
Shum Yip Properties Development Intercourse funds to Over 5
109,666,108.82 2.17% 7,110,900.41
Co., Ltd. subsidiary years
Total 4,945,538,616.70 98.05% 7,110,900.41
6) Accounts Receivable Involving Government Subsidies
Unit: RMB
Project of government Estimated recovering
Name of the entity Ending balance Ending aging
subsidies time, amount and basis
7) Derecognition of Other Receivables due to the Transfer of Financial Assets
8) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement of Other
Receivables
Other notes:
3. Long-term Equity Investment
Unit: RMB
Ending balance Beginning balance
Item Carrying Impairment Carrying Impairment
Carrying value Carrying value
amount provision amount provision
Investment to 1,436,329,880. 1,367,965,880. 1,127,829,880. 1,059,465,880.
68,364,000.00 68,364,000.00
subsidiaries 39 39 39 39
Investment to
joint ventures
98,765,051.45 18,983,614.14 79,781,437.31 69,344,295.51 18,983,614.14 50,360,681.37
and associated
enterprises
1,535,094,931. 1,447,747,317. 1,197,174,175. 1,109,826,561.
Total 87,347,614.14 87,347,614.14
84 70 90 76
(1) Investment to Subsidiaries
Unit: RMB
Increase/decrease for the current period
Beginning
Withdrawal of Ending balance Ending balance of
Investee balance (carrying Additional Reduced
impairment Others (Carrying value) depreciation reserve
value) investment investment
provision
Shenzhen Huangcheng Real 35,552,671.93 35,552,671.93
232
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Estate Co., Ltd.
Shenzhen Wuhe Industry
Investment Development Co., 44,950,000.00 44,950,000.00
Ltd.
SZPRD Yangzhou Real Estate
50,000,000.00 50,000,000.00
Development Co., Ltd.
Dongguan ITC Changsheng
Real Estate Development Co., 20,000,000.00 20,000,000.00
Ltd.
Shenzhen International Trade
Center Property Management 195,337,851.23 195,337,851.23
Co., Ltd.
Shenzhen Property Engineering
and Construction Supervision 3,000,000.00 3,000,000.00
Co., Ltd.
SZPRD Commercial Operation
63,509,120.32 63,509,120.32
Co., Ltd.
Zhanjiang Shenzhen Real Estate
2,530,000.00
Development Co., Ltd.
Shum Yip Properties
15,834,000.00
Development Co., Ltd.
SZPRD Xuzhou Dapeng Real
50,000,000.00
Estate Development Co., Ltd.
Shenzhen Rongyao Real Estate
508,000,000.00 508,000,000.00
Development Co., Ltd.
Shenzhen ITC Technology Park
Service Co., Ltd.
SZPRD Urban Renewal Co.,
119,116,236.91 41,641,757.62 77,474,479.29
Ltd.
Dongguan Wuhe Real Estate
20,000,000.00 30,000,000.00 50,000,000.00
Co., Ltd.
Shenzhen Guangming Wuhe
50,000,000.00 50,000,000.00
Real Estate Co., Ltd.
Shenzhen Wuhe Urban Renewal
236,641,757.62 236,641,757.62
Co., Ltd.
Yangzhou Wuhe Real Estate
33,500,000.00 33,500,000.00
Co., Ltd.
1,367,965,880.3
Total 1,059,465,880.39 350,141,757.62 41,641,757.62 0.00 0.00 68,364,000.00
9
(2) Investment to Joint Ventures and Associated Enterprises
Unit: RMB
Increase/decrease for the current period
Adjustment Cash bonus or Withdrawal Ending balance
Beginning balance Gains and losses Ending balance
Investee of depreciation
(carrying value) Additional Reduced
recognized under the
of other Changes of profits of
Others (Carrying value)
investment investment comprehensi other equity announced to impairment reserve
equity method
ve income issue provision
I. Joint ventures
Shenzhen Real
Estate Jifa
43,516,665.12 1,213,920.18 44,730,585.30
Warehousing Co.,
Ltd.
Tian’an
International
Building Property
6,844,016.25 193,936.05 7,037,952.30
Management
Company of
Shenzhen
Subtotal 50,360,681.37 1,407,856.23 51,768,537.60
II. Associated enterprises
Shenzhen
Wufang Ceramics
18,983,614.14
Industrial Co.,
Ltd.
CSCEC
Intelligent 27,380,294.
632,605.58 28,012,899.71
Parking 13
Technology Co.,
233
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Ltd.
27,380,294.
Subtotal 632,605.58 28,012,899.71 18,983,614.14
13
27,380,294.
Total 50,360,681.37 2,040,461.81 79,781,437.31 18,983,614.14
13
(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 56,064,949.33 43,679,264.65 61,784,858.02 37,251,974.27
Others 19,421,465.41 1,319,976.00 18,744,743.91 1,319,976.00
Total 75,486,414.74 44,999,240.65 80,529,601.93 38,571,950.27
Relevant information of revenue:
Unit: RMB
Category of contracts Segment 1 Segment 2 Total
Product categories 75,486,414.74 75,486,414.74
Of which:
House leasing business 75,486,414.74 75,486,414.74
Classification by
75,486,414.74 75,486,414.74
operating region
Of which:
Shenzhen 75,486,414.74 75,486,414.74
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 75,486,414.74 75,486,414.74
Information about performance obligations:
The income of the parent company in current period was all income from leasing business.
Information in relation to the transaction price apportioned to the residual contract performance obligation:
The amount of revenue corresponding to performance obligations of contracts signed but not performed or not fully performed yet
234
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
was RMB840,878,470.63 at the period-end, among which RMB840,878,470.63 was expected to be recognized in 2023.
Other notes:
5. Investment Income
Unit: RMB
Item Amount for the current period Amount for the previous period
Long-term equity investment income
151,433,108.41
accounted by cost method
Long-term equity investment income
2,040,461.81 4,650,460.58
accounted by equity method
Entrusted loans interest 159,934,119.41 129,717,557.63
Total 313,407,689.63 134,368,018.21
6. Other
XVIII. Supplementary Materials
1. Items and Amounts of Non-recurring Profit or Loss
Applicable □Not applicable
Unit: RMB
Item Amount Note
Gains/losses from the disposal of non- Mainly received compensation for land
175,644,543.02
current assets resumption
Government grants recorded in the
current profit or loss (except for those
acquired in the ordinary course of
company’s business, in line with national 10,633,227.34
policies and regulations, or granted
continuously according to certain
standard quotas or amounts)
Dispossession surcharge to non-financial
institutions included in the current profit 132,289.35
and loss
Net profit or loss for the period from the
beginning of the period to the date of
consolidation of a subsidiary arising 9,596,148.16
from a business combination under
common control
Gains and losses arising from
contingencies unrelated to the normal 70,578.79
operation of the company’s business
Gain/loss from change of fair value of
trading financial assets and liabilities,
and investment gains from disposal of
trading financial assets and liabilities as 1,300.91
well as financial assets available for sale,
other than valid hedging related to the
Company’s common businesses
Other non-operating income and expense
2,448,235.99
other than the above
Other profit and loss items in line with
the definition of non-recurring gains and 277,896.27
losses
Less: Income tax effects 51,525,180.31
235
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2022
Non-controlling interests effects 54,953.47
Total 147,224,086.05 --
Details of other profit and loss items in line with the definition of non-recurring gains and losses:
□Applicable Not applicable
There are no other profit and loss items in line with the definition of non-recurring gains and losses in the Company.
Note to defining the non-recurring profit and loss items listed in the Explanatory Notice of Information Disclosure by Companies
Offering Securities to the Public No. 1 - Non-recurring Profit and Loss Items as recurring profit and loss items
□Applicable Not applicable
2. Return on Equity and Earnings Per Share
Weighted average ROE EPS
Profit as of reporting period
(%) EPS-basic EPS-diluted
Net profit attributable to ordinary
12.37% 0.9022 0.9022
shareholders of the Company
Net profit attributable to ordinary
shareholders of the Company after
9.01% 0.6551 0.6551
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
236
