ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
SHENZHEN PROPERTIES & RESOURCES DEVELOPMENT (GROUP) LTD.
INTERIM REPORT 2023
（Announcement No. 2023-16）
August 2023
1
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Part I Important Notes, Table of Contents and Definitions
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of ShenZhen Properties & Resources Development
(Group) Ltd. (hereinafter referred to as the “Company”) hereby guarantee the factuality,
accuracy and completeness of the contents of this Report and its summary, and shall be
jointly and severally liable for any misrepresentations, misleading statements or material
omissions therein.
Liu Shengxiang, the Company’s legal representative, Cai Lili, the Company’s head of
financial affairs, and 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 has no interim dividend plan, either in the form of cash or stock.
This Report and its summary have been prepared in both Chinese and English. Should there
be any discrepancies or misunderstandings between the two versions, the Chinese versions
shall prevail.
2
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Table of Contents
Part I Important Notes, Table of Contents and Definitions........................................................... 2
Part II Corporate Information and Key Financial Information................................................... 6
Part III Management Discussion and Analysis................................................................................9
Part IV Corporate Governance.......................................................................................................27
Part V Environmental and Social Responsibility.......................................................................... 29
Part VI Significant Events............................................................................................................... 31
Part VII Share Changes and Shareholder Information................................................................41
Part VIII Preferred Shares.............................................................................................................. 45
Part IX Bonds................................................................................................................................... 46
Part X Financial Statements............................................................................................................47
3
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Documents Available for Reference
I. The financial statements with the signatures and stamps of the Company’s legal representative,
head of financial affairs and head of the financial department; and
II. The originals of all the Company’s documents and announcements disclosed to the public via
newspapers designated by the CSRC in the Reporting Period.
4
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Definitions
Term Definition
ShenZhen Properties & Resources Development (Group) Ltd. and its
The “Company”, the “Group”, “SZPRD” or “we”
consolidated subsidiaries, except where the context otherwise requires
SIHC Shenzhen Investment Holdings Co., Ltd.
Huangcheng Real Estate Shenzhen Huangcheng Real Estate Co., Ltd.
Dongguan Company Dongguan ITC Changsheng Real Estate Development Co., Ltd.
Xuzhou Company SZPRD Xuzhou Dapeng Real Estate Development Co., Ltd.
Yangzhou Company SZPRD Yangzhou Real Estate Development Co., Ltd.
Jinghengtai Shenzhen Jinghengtai Real Estate Development 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.
Urban Renewal Company Shenzhen Wuhe Urban Renewal 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
5
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Part II Corporate Information and Key Financial Information
I Corporate Information
Stock name PRD, PRD-B Stock code 000011, 200011
Changed stock name (if any) N/A
Stock exchange for stock listing Shenzhen Stock Exchange
Company name in Chinese 深圳市物业发展(集团)股份有限公司
Abbr. (if any) 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
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
Address Road, Luohu District, Shenzhen, Guangdong Road, Luohu District, Shenzhen, Guangdong
Province, P.R.China Province, 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 Other Information
1. Contact Information of the Company
Indicate by tick mark whether any change occurred to the registered address, office address and their zip codes, website address,
email address and other contact information of the Company in the Reporting Period.
□ Applicable Not applicable
No change occurred to the said information in the Reporting Period, which can be found in the 2022 Annual Report.
2. Media for Information Disclosure and Place where this Report is Kept
Indicate by tick mark whether any change occurred to the information disclosure media and the place for keeping the Company’s
periodic reports in the Reporting Period.
□ Applicable Not applicable
The website of the stock exchange, media and other websites where the Company’s periodic reports are disclosed, as well as the
place for keeping such reports did not change in the Reporting Period. The said information can be found in the 2022 Annual
Report.
6
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
3. Other Information
Indicate by tick mark whether any change occurred to other information in the Reporting Period.
□ Applicable Not applicable
IV Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes No
H1 2023 H1 2022 Change (%)
Operating revenue (RMB) 1,905,464,632.85 1,988,299,840.24 -4.17%
Net profit attributable to the
listed company’s shareholders 220,903,444.63 250,802,157.71 -11.92%
(RMB)
Net profit attributable to the
listed company’s shareholders
220,844,711.14 256,650,611.05 -13.95%
before exceptional gains and
losses (RMB)
Net cash generated from/used
-580,021,658.15 -395,994,231.09 -46.47%
in operating activities (RMB)
Basic earnings per share
0.3707 0.4208 -11.91%
(RMB/share)
Diluted earnings per share
0.3707 0.4208 -11.91%
(RMB/share)
Weighted average return on
4.92% 5.40% -0.48%
equity (%)
30 June 2023 31 December 2022 Change (%)
Total assets (RMB) 15,499,537,209.75 15,800,287,610.40 -1.90%
Equity attributable to the
listed company’s shareholders 4,418,069,737.97 4,412,555,547.97 0.12%
(RMB)
V 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 Differences under CAS and IFRS
□ Applicable Not applicable
No such differences for the Reporting Period.
2. Net Profit and Equity Differences under CAS and Foreign Accounting Standards
□ Applicable Not applicable
No such differences for the Reporting Period.
7
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
VI Exceptional Gains and Losses
Applicable □ Not applicable
Unit: RMB
Item Amount Note
Gain or loss on disposal of non-current assets (inclusive of
174,379.69
impairment allowance write-offs)
Government subsidies through profit or loss (exclusive of
government subsidies consistently given in the Company’s
501,658.00
ordinary course of business at fixed quotas or amounts as per
governmental policies or standards)
Non-operating income and expense other than the above -562,616.42
Less: Income tax effects 31,670.01
Non-controlling interests effects (net of tax) 23,017.77
Total 58,733.49
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.
8
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Part III Management Discussion and Analysis
I Principal Activity of the Company in the Reporting Period
(I) Core Business Overview
Established in 1982, the Company was originally known as "Luohu Engineering and Construction Headquarters" and renamed
"Shenzhen Municipal Property Development Corporation" in August 1985. The Company was determined as the second batch of
pilot units for joint-stock reform of state-owned enterprises in 1988. Approved by the municipal government, the Company renamed
to ShenZhen Properties & Resources Development (Group) Ltd. in 1990. The stock of the group company (stock name: SZPRD, A/B;
stock code: 000011, 200011) was officially listed in Shenzhen Stock Exchange in March 1992.
The Company contracted and built Shenzhen International Trade Center Building as Party A and created, planned, and organized the
world-famous "Shenzhen Speed". The building was the place where Chairman Deng Xiaoping gave talks in his inspection to the
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".
2023 is a new starting point for the Group upon four decades of development. During the Reporting Period, the Company 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. Also, it continued to work on “faster growth,
better operating performance, empowerment, and effectiveness”, with smooth and orderly progress in various aspects. Meanwhile,
the Company endeavored to further consolidate and highlight the advantages of industry-city integration and the whole industrial
chain with respect to its products and services.
1. Industrial & urban space development
In terms of the space development segment, the Company is specialized in developing the residence, the hi-end apartment, the office
building, and the industrial park and has developed a batch of brand projects, including Shenzhen International Trade Center
Building, Huanggang Port, Tian'an International Building, Qianhai Gangwan Garden, and Golden Collar Holiday. Based on its
present real estate development business, the Company will improve its existing portfolio and plan for new businesses. It will engage
a number of subsidiaries in property development and urban renewals, including Huangcheng Real Estate, Rongyao Real Estate, and
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 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
9
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
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". The total managed properties have exceeded 35 million square meters, of which
the managed industrial parks 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
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.
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.
(II) Industry Review
1. Real estate industry
In the first half of 2023, the macro-economic operation continued the development trend of overall stability and steady progress.
As the economy and society fully returned to normal, macro policies took effect, and the national economy rebounded with high-
quality development being boosted steadily. Since 2021, real estate regulation has maintained the orientation that "houses are for
living in, not for speculation", and clearly upheld the principles of "implementing city-specific policies" and "supporting people's
10
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
demand for housing improvement". The real estate policies as a whole continued to present a loose landscape that had existed
since the end of last year, and adhered to the synergy of five endeavours, i.e., boosting demands, preventing risks, guaranteeing
people's livelihood, transforming development patterns and standardising administration. In January, the People's Bank of China
(PBC) and the China Banking and Insurance Regulatory Commission (CBIRC) announced a decision to establish a dynamic
adjustment mechanism for first-home loan rate policy. According to the mechanism, prescribed minimum first-home loan rate can
be further lowered temporarily if the price of new homes plunges for three months in a row. In addition, CBIRC made a proposal
during the work meeting for the year 2023 to adhere to the orientation that "houses are for living in, not for speculation",
implement the measures of "16 Articles concerning Finance", uphold the principle of "implementing city-specific policies" and
adopt differentiated credit policies, and endeavour to facilitate the normal circulation of finance and real estate. In February, China
Securities Regulatory Commission (CSRC) started the pilot project of privately offered fund for real asset. Under the existing
framework of privately equity fund, CSRC provided "privately offered fund for real asset" as a new category and took
differentiated policies of regulation in expectation to further leverage the advantages of privately offered fund in diversified asset
allocation and professional investment operation, thus meeting rational financing demands in real asset. During the regular
meeting of the first quarter in 2023, the Monetary Policy Committee of PBC proposed once again that all work related to
completion guarantee, guaranteeing people's livelihood and guaranteeing stability should be advanced soundly, city-specific
policies should be implemented to boost rigid and improved housing demand, the improvement of financial policies system for
housing lease should be sped up, and the sector of real estate should be advanced steadily toward a new development pattern. In
May, PBC released the China Monetary Policy Report Q1 and proposed that M&A across the sector of real estate should be
promoted to prevent and resolve the risks faced by high-quality leading real estate companies effectively, and the status quo of
their assets and liabilities should be improved to advance the implementation of the re-lending dedicated to easing the companies'
difficulties and the supporting plans for housing lease loan.
From the regional market, in the first half of 2023, the regulatory policies for the real estate market in Shenzhen remained prudent.
In January, Housing and Construction Bureau of Shenzhen Municipality and other five departments jointly released the Scheme
for Extensive Adoption of the Model Featuring "Ownership Transfer with Collateral" of Second-hand Houses in Shenzhen City to
popularise the model and reduce transaction costs. In March, Housing and Construction Bureau of Shenzhen Municipality released
the Regulations for the Administration of Housing Fund Loan in Shenzhen City and proposed that more efforts should be made to
support the purchase of houses for first-time buyers, families with several children, green building buyers, etc. in housing fund
loan. In May, Housing and Construction Bureau of Shenzhen Municipality released the Implementation Plan for Housing
Development in Shenzhen in 2023 (hereafter referred to as "the Implementation Plan"). According to the goals of housing supply
stipulated in the Implementation Plan, in 2023, the government of Shenzhen City plans to provide and allocate 80,000 affordable
houses covering a building area around 4,190,400 square meters. The presales and cash sales of 60,000 commercial houses
covering a building area of 6,000,000 square meters have been approved in the Implementation Plan.
In the first half of 2023, with numerous positive policy incentives such as adjustment of reference price policy, housing loan rate
cut and extensive adoption of ownership transfer with collateral, the real estate market weathered its record low and stepped upon
a path of slow but steady recovery. During the process, the transfer number of second-hand houses reached 16,236, up 63% year
on year. In terms of land market, in the first half of the year, Shenzhen launched a total of 37 land plots, with a total planned area
of 7,675,600 square meters, including seven residential land plots with a planned building area of 755,300 square meters. In the
first half of the year, the land auction in Shenzhen evidently proved that the local land market was recovering and surging, and
some of local private real estate companies had overcome the dilemma and were regaining their vitality, marking the resurge of
confidence in the real estate market.
In the face of changes in industry policies and development trends, mainstream real estate enterprises are gradually making efforts in
diversified business layouts. At present, mainstream real estate enterprises have already entered and formed stable industry pattern in
many relevant fields other than residential development and sales, such as property management, commercial property, long-term
rental and logistics real estate. Additionally, sub-industries such as elderly care, education and agency construction have also
11
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
achieved rapid development. The industry has accelerated its transformation from real estate to immovable property, gradually
shifting from the scale-driven advantage formed by residential development and sales to the integration of development, operation
and service.
2. Property management industry
In recent years, driven by continued urbanization, consumption upgrade and encouraging policies, and overlaid with technological
empowerment and capital dividends, the property management industry has entered a period of rapid development. In 2022, national
and local governments promulgated numerous policies to encourage the development of community elder care, childcare, property
management, domestic services, catering, retail and other diversified life services. Community elder care in particular was mentioned
for many times as a business direction facilitated vigorously by the policies. In May 2023, General Office of the CPC Central
Committee and State Council released the Opinions on Advancing the Development of Basic Elder Care Service System, according
to which private sectors should be encouraged to participate in supply of basic elder care service and enterprises of property
management services should be supported in supply of home-based community elder care services in light of local realities.
Apparently, elder care remains a priority of the policies. Community elder care as an important component of value-added
community services is both an opportunity and a challenge for suppliers of property management services. Scale and boundary
expansion remains the main theme in the development of the property management industry. From the perspective of M&A events, in
the first five months of the year, a total of six M&A events of listed real estate companies were disclosed, which involved less than
RMB400 million. The figures marked a plunge compared with that of the same period of last year. The M&A cases of listed real
estate companies in the first half of 2023 occurred mainly to improve operation capability of diversified business patterns and
facilitate high-quality expansion of business scale, which were rational. In terms of property management enterprises, as at 30 June
2023, a total of 64 enterprises were listed, including 59 on the Main Board of Hong Kong and five on the A-share, and one listed
company was added to the segment of property management services.
Under the impact of changes in real estate market environment and other factors, the expansion rate of management scale of the
property management industry slowed down, and how to improve smart management and forge smart communities became one of
the major development directions for the enterprises. Therefore, the property management enterprises should enrich their knowledge
of the market and the industry and adjust their strategies and business patterns promptly to adapt to changes in market and customers'
demands. Meanwhile, they should strengthen the introduction of talents proficient in management and technology and improve their
training and management to enhance their core competitiveness and innovation capability.
(III) Operating Performance of the Company in the Reporting Period
In 2023, the Company closely focuses on the implementation of the key work deployment formulated at the beginning of the year,
with the first half of the year seeing smooth and orderly progress in various aspects. 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. During the Reporting Period, the Company achieved operating revenue of
approximately RMB1.9 billion and a gross profit of approximately RMB0.29 billion, and all other indicators such as expenses and
total remunerations were under effective control.
First, the industry-city space development segment maintained stable performance, with project construction being
actively promoted. In the first half of the year, the real estate business recorded operating revenue of approximately RMB1.05
billion, accounting for 55% of the total revenue. During the Reporting Period, the real estate segment of the Company continued to
strengthen the synergy of nodal targets and resource guarantee to coordinate the sales collection of real estate projects as well as
development and construction in a comprehensive manner. Seizing the time window, the Company started channel referral for the
at-the-close order of Golden Collar project, launched the openness demonstration area of Sea Bay project, and realised the
marketing of Yutang Shangfu project successfully. Fuchang Phase II project was completed and delivered with recognised revenue
of approximately RMB960 million, which laid a solid foundation for the Group's fulfilment of its annual operating indicators. The
12
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
announcement on transfer of Yupin Luanshan project is scheduled to be completed at the end of the year, which will vigorously
facilitate the Group to fulfil its annual profit target. The schedule as a whole is in order and under control, with Shenyang Digital
and Smart City project, Tianjun Industrial Park, Fuyuan Industrial Area, Huuiyang Danshui project and other projects being
advanced steadily.
Second, the property management segment grew steadily, and numerous measures were taken to improve the core
competitiveness in priority. In the first half of the year, the property management business recorded operating revenue of
approximately RMB770 million, accounting for 41% of the total revenue. With a total of 21 expanded projects added in the
property management segment, Shenzhen International Trade Center Property Management Co., Ltd. (ITC Property Management)
was awarded numerous honours including "Top 100 Comprehensive Strength of Chinese Property Service Enterprises in 2022" for
seven years in a row, whose brand influence continued to increase. In the first half of the year, ITC Property Management
highlighted internal construction and optimise its organisation framework to build a more scientific and rational management
system; further improved the synergy if internal components of the system, expanded SH-STIC Openness Centre and
Comprehensive Service Centre projects, incorporated International Trade Industry Space Company in the joint venture with
Shenzhen Construction Development (Group) Company ("Shenzhen Construction Development"), and advanced business related
to entry and takeover of Shenzhen Construction Development Yunqi Building and other comprehensive projects; continued to
advance the integration of five property management enterprises recently merged and acquired into the Group, and formulated
development strategies according to the integration thinking pattern featuring professionalism, systematicness and maximum
synergy.
Third, quality and efficiency were improved and core operating capabilities were cultivated for the industrial ecological
operation and other segments. In the first half of the year, the lease operating business recorded operating revenue of
approximately RMB80 million, accounting for 4% of the total 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 and enhancing the Group's layout of suppliers of smart operation of industrial and urban
space operation. In terms of industrial investment promotion, the Group built a "1+2+3+N" industrial strategy system through
multiple channels, explored the in-depth property development strategy, and vigorously promoted investment promotion work for
Yangzhou and International Trade Mall upgrade projects according to the Industrial Operation White Paper released last year.
New additions to the land bank:
Considerati
Floor area Total land on of the
Name of with plot How the The
Planned Site area price Company’s
land lot or Location ratio land is Company’s
use of land （㎡） (RMB’0,00 interest
project obtained interest
（㎡） 0) (RMB’0,00
0)
None None None None None None
Cumulative land bank:
Floor area available for
Name of project/area Site area（0,000 ㎡） Floor area（0,000 ㎡）
development（0,000 ㎡）
Land in Danshui, Huiyang
1.77 4.25 4.25
District, Huizhou City
Land in Hongqi Town,
15.80 - -
Haikou City
Total 17.57 4.25 4.25
Development status of major projects:
13
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Floor
Cumu
area
lative
that
floor
compl
Time for area Estimat Cumulat
Ci The Planned eted
commen % that ed total ive
ty/ Loc Comp % that has floor area constr
Name of cement deve Site area has investm investm
re atio Usage any’s completed with plot uction
project of lope （㎡） compl ent ent
gi n interes construction ratio in the
construc d eted (RMB’0 (RMB’0
on t （㎡） Curre
tion constr ,000) ,000)
nt
uction
Period
（㎡
（㎡
）
）
Sh Futi
Co
en FuhuiHuayu an Resident 43,52
100% 2018.12 mpl 100% 4,274 33,430 0 91,133 77,396
zh an Dist ial 2
eted
en rict
The main
Gua Und construction
Sh
ngm er above ground
en Yutang Resident 100.0
ing 2022.03 cons reaches 30 14,901 81,960 0 0 265,868 191,086
zh Shangfu ial 0% truct floors and has
Dist
en ion been opened
rict
for pre-sale
Phase I has
obtained the
land use
permit; the
main body of
Lot 02# in
Resident
Phase II has
ial, reached 7-12
Gua Und
Sh industria floors, Lot
ngm er
en Lanhu l, 69.00 03# has been
ing 2020.10 cons 68,298 433,640 0 0 840,000 462,294
zh Shidai commer % constructed to
Dist truct
en cial and plus or minus
rict ion
0, and Lot
apartme
04# and Lot
nt 06# are
working on
the ground
floor and
anchor cable
construction.
The main
body has been
D
completely
on Und roofed, and it
Hu
gg er is undergoing
Sea Bay men Resident 100.0
ua 2022.03 cons construction 51,687 113,713 0 0 321,759 251,861
Garden Tow ial 0% truct of doors,
n
n ion windows,
Ci
railings,
ty
decoration,
etc.
Resident Phase I, Lot
Ya Ping Und
Shenyang ial, D is
er
ng shan 67.00 undergoing
Digital industria 2022.09 cons 231,612 370,258 0 0 377,479 109,548
zh Vill % above ground
Town l and truct
ou age main
office ion
construction
Sales status of major projects:
14
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Pre- Pre-
Floor sale/sal sale/sal
Cumula Floor
Floor Floor area es Cumula es
tive area
Cit area area pre- revenue tive revenue
The pre- settled
y/r Name of with availabl sold/sol generat settled settled
Location Usage Company sold/sol in the
egi project plot e for d in the e in the floor in the
’s interest d floor Current
on ratio sale Current Current area Current
area Period
（㎡） （㎡） Period Period (㎡) Period
（㎡） （㎡）
（㎡） (RMB’ (RMB’
0,000) 0,000)
Intersection
of Futian Residential,
Sh Golden
South Road studio
en Collar’s 133800 125231 120031 1026.3 9,281.5 119,773
and Binhe apartments 100.00% 768.95 6,635.4
zh Resort .6 .07 .31 2 4 .46
Road in and
en apartments
Futian commercial
District
Ya Residential
ng Intersection units, shops,
Hupan
zh of Shouxihu apartments, 36141. 48870. 43057. 43057.
Yujing 100.00% 33.44 12.8 33.44 11.74
ou Road and parking 28 98 25 25
Phase I
Cit Hangou Road garages and
y lots
Ya Residential
ng Intersection units, shops,
Hupan
zh of Shouxihu apartments, 56935. 73121. 70116.9 70097.
Yujing 100.00% 66.97 27.35 66.97 25.09
ou Road and parking 75 96 9 88
Phase II
Cit Hangou Road garages and
y lots
Do
ng Dalang
Residential
gu Songhu Town, 147139 149446
and 100.00% 140911 140911 96 82.09 96 82.09
an Langyuan Dongguan .96 .95
commercial
Cit City
y
Rental status of major projects:
The Cumulative
Company’ Rentable area Average
Name of project Location Usage rented area
s working （㎡） occupancy rate
（㎡）
interest
Apartments
Xi Apartments
Shenzhen for long-term 100.00% 3967.05 3967.05 100.00%
(Longyuan)
rental
Apartments
Xi Apartments (Longhua) Shenzhen for long-term 100.00% 1609.42 1609.42 100.00%
rental
Apartments
Xi Apartments (Xinhu) Shenzhen for long-term 100.00% 1626.4 1130.6 69.52%
rental
Food Court in the
Shenzhen Commercial 100.00% 4152.47 1676.97 40.38%
International Trade Center
Commercial,
Fumin Complex Shenzhen 100.00% 5900.19 4766.49 80.79%
apartments
Tower A of Wenjindu Port Office
Shenzhen 75.00% 5904.3 5604.3 94.92%
Building building
Commercial
Haiwai Lianyi Building Shenzhen units and 75.00% 8262.88 8002.88 97.00%
offices
Anhua Building Shenzhen Offices 75.00% 1414 1414 100.00%
Pengfu Building Shenzhen Offices 75.00% 6494 6494 100.00%
Shenzhen
Jinfu Building Commercial 75.00% 1652.7 1535.7 92.92%
Shenzhen
Shenzhen
Jinfu Building Commercial 100.00% 567.56 567.56 100.00%
Shenzhen
15
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Residential/co
Fuxing Garden Shenzhen 75.00% 5787.22 5787.22 100.00%
mmercial
Fuxing Garden Shenzhen Commercial 100.00% 1417.15 1417.15 100.00%
Plant area in Tangxia Dongguan
Plant 75.00% 21135.12 21135.12 100.00%
Town, Dongguan City City
Commercial
Pacific Business Building Shenzhen 75.00% 3149.03 2676.54 85.00%
units/offices
Commercial
Pacific Business Building Shenzhen 15.00% 14888.76 14319.54 96.17%
units/offices
Commercial
Kangti Building Shenzhen 75.00% 2095.87 1925.47 91.87%
units/offices
Commercial
Kangti Building Shenzhen 15.00% 1146.81 1146.81 100.00%
units/offices
Commercial
Lyuhua Building Shenzhen 75.00% 7106.95 6588.41 92.70%
and residential
Shops on the ground floor
of Tower 48 in Lianhua Shenzhen Shops 75.00% 1000.34 1000.34 100.00%
North Village
Apartments
and
Haonianhua Building Shenzhen 100.00% 1802.61 1802.61 100.00%
commercial
units
Apartments
and
Haonianhua Building Shenzhen 75.00% 2277.9 2277.9 98.37%
commercial
units
Kaifeng Garden in
Shenzhen Residential 100.00% 1568.85 916.92 58.45%
Shangmeilin
Fuyuan Industrial Zone Shenzhen Plant area 75.00% 47131.4 47131.4 100.00%
Tonglu Industrial Zone Shenzhen Plant area 100.00% 76886.26 73198.67 95.20%
Jiangling Industrial Zone Shenzhen Plant area 75.00% 10396.64 10396.64 100.00%
Commercial/o
Zone 21 Shenzhen 75.00% 9514.3 9438.7 99.20%
ffices
Baoli Community Shenzhen Residential 75.00% 9020.07 8079.79 89.57%
Songgang Plant Shenzhen Plant area 75.00% 5700 5700 100.00%
Longbu Plant Shenzhen Plant area 75.00% 7471.36 7471.36 100.00%
Gonglu Building in
Shenzhen Offices 75.00% 4599.72 4527.18 98.42%
Huanggang
Yuetong Complex Shenzhen Offices 75.00% 3044 3044 100.00%
Department Store Plaza Shenzhen Offices 33.00% 12751.15 12751.15 100.00%
Southern Securities
Shenzhen Offices 33.00% 8809.8 4395.4 49.89%
Building
Building 409, Sangda
Shenzhen Plant area 33.00% 3309.2 3309.2 100.00%
Industrial Zone
Mianshui Studio
Shenzhen Apartment 33.00% 3440.12 3440.12 100.00%
Apartment
Xiangfu Building Shenzhen Commercial 33.00% 3109.4 3109.4 100.00%
Primary land development:
□ Applicable Not applicable
Financing channels:
Unit: RMB
Financing Ending balance of Financing
Maturity structure
channel financings cost
16
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
range/aver
age
Within 1 year 1-2 years 2-3 years Over 3 years
financing
cost
Bank
4,368,583,592.17 3%-5% 196,133,324.00 3,438,133,324.00 67,302,463.17 667,014,481.00
loans
Total 4,368,583,592.17 3%-5% 196,133,324.00 3,438,133,324.00 67,302,463.17 667,014,481.00
Development strategy and operating plan for the coming year:
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. In
terms of project development, the group will focus on the core goal of “cash inflow”. To coordinate development and business
operations effectively, the group's headquarters will work hard on “faster growth, better operating performance, empowerment,
and effectiveness”. 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 Project, Guangming Project, Guanlan Bengling Urban Renewal Project, and
Yangzhou Project. The second objective is to promote the preliminary work of urban renewal projects and ensure the group's
future success. In terms of the Pingshan Tianjun Industrial Park Project, the group will sign the Relocation Compensation and
Resettlement Agreement and other relevant documents with Tianjun as soon as possible upon negotiation efforts, 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 Sea Bay Garden,YutangShangfu and LanhuaShidai projects, and finish
the payment collection associated with the transfer of equity interests in the Yupin Luanshan Project.
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 great 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 30 June 2023, security deposits for such outstanding guarantees amounted to RMB63,292,452.99,
of which RMB1,132,452.99 will be returned upon the expiry of the guarantees, i.e. when the relevant homebuyers paid off their
bank mortgages, and RMB62,160,000 will be returned after the customer has obtained the property and other title deeds and
transferred them to the bank.
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
Compatibilit
Amount of As % of the y of actual
% of
Name of Type of investment investment peak of the Cumulative Disinvestm investment
investment
project entity (RMB’0,00 project income ent amount and
amount
0) funds distributed
income
17
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Mandatory
Urban investment entities
Renewal of (including directors 2,647.00 66.18% N/A None None N/A
and senior
Bangling
management)
Section at
Guanlan Voluntary
Street 1 1,353.00 33.82% N/A None None N/A
investment entities
Note: 1. 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.
II Core Competitiveness Analysis
Advantages in brand and cultural accumulation: SZPRD, a state-owned enterprise in Shenzhen, has forged an
unparalleled legacy of pioneering development over the past four decades. The company has crafted a diversified development
pattern with real estate development at the forefront, accompanied by urban renewal, property management, asset operation, and
industrial investment. The brand value and comprehensive strength of "Shenzhen Property," imbued with the spirit of reform and
opening up in international trade, have garnered significant market recognition. Born from the World Trade Building, the company
has flourished through reform and opening up, coexisting and flourishing alongside the miraculous city of Shenzhen. The
corporate culture of "daring to be the first and striving for transformation" intermingles with the "pioneering spirit" of surmounting
challenges, providing guidance in advancing the remarkable progress of SZPRD from "Shenzhen speed" to "Shenzhen quality."
Market-oriented advantages: In accordance with the market-oriented pace of a small change in a year and a big change in three
years, the Group continues to innovate institutional mechanisms, deepen internal reforms, and actively benchmark with industry
models for market-oriented operation, which significantly stimulates the vitality and momentum of the Group's high-quality
development. In recent years, the 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 has been listed in the Fortune Global 500 for four
18
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
consecutive years and ranked 391st in 2023. 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.
III Core Business Analysis
Overview
See contents under the heading “I Principal Activity of the Company in the Reporting Period”.
Year-on-year changes in key financial data:
Unit: RMB
H1 2023 H1 2022 Change (%) Main reason for change
Operating revenue 1,905,464,632.85 1,988,299,840.24 -4.17%
Increased cost carryforwards in
Cost of sales 1,372,159,884.25 1,068,652,583.32 28.40%
real estate in the current period
Selling expense 13,087,297.05 11,358,858.51 15.22%
Administrative expense 149,188,184.18 143,701,058.05 3.82%
Finance costs 24,192,404.94 28,092,277.76 -13.88%
Income tax expense 78,819,275.76 92,655,204.26 -14.93%
Decreased compensation cost due
R&D investments 1,711,051.44 2,689,725.40 -36.39% to structural adjustment of R&D
staff in the current period
Net cash generated
Decreased cash inflows and tax
from/used in operating -580,021,658.15 -395,994,231.09 -46.47%
activities payments in the current period
Net cash generated
Payments for equity transfer in the
from/used in investing -4,097,141.76 -248,809,261.38 98.35%
activities same period of last year
Net cash generated
Increased bank loans in the
from/used in financing 449,035,955.58 151,572,890.35 196.25%
activities current period
Net increase in cash
-133,028,374.78 -490,792,510.62 72.90%
and cash equivalents
Increased VAT of lands accrued in
Taxes and surcharges 45,190,786.03 394,230,719.81 -88.54%
the same period of last year
Asset impairment loss 2,045.93 3,302.47 -38.05%
Credit impairment loss -13,610,779.58 -14,462,076.54 5.89%
Increased net profits of joint
Return on investment 1,857,388.32 946,914.05 96.15%
ventures in the current period
Reversal of non-operating income
Non-operating income -204,898.03 2,546,068.46 -108.05% recognized in previous period in
the current period
Liquidated damages for delayed
Non-operating expense 357,718.39 1,417,586.84 -74.77% delivery paid in the same period
of last year
Other comprehensive
income-changes in the Influenced by changes in the fair
-275,978.56 -118,365.58 -133.16%
fair value of other value
equity instruments
19
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Other comprehensive
income –differences
arising from the
1,679,998.83 2,181,645.00 -22.99%
translation of foreign
currency-demoninated
financial statements
Material changes to the profit structure or sources of the Company in the Reporting Period:
□ Applicable Not applicable
No such changes in the Reporting Period.
Breakdown of operating revenue:
Unit: RMB
H1 2023 H1 2022
As % of total As % of total Change (%)
Operating revenue operating revenue Operating revenue operating revenue
(%) (%)
Total 1,905,464,632.85 100% 1,988,299,840.24 100% -4.17%
By operating division
Property
1,053,881,874.68 55.31% 1,156,147,570.46 58.15% -8.85%
development
Property
773,181,325.02 40.58% 778,342,112.81 39.15% -0.66%
management
Property rental 78,401,433.15 4.11% 53,810,156.97 2.71% 45.70%
By product category
Property
1,053,881,874.68 55.31% 1,156,147,570.46 58.15% -8.85%
development
Property
773,181,325.02 40.58% 778,342,112.81 39.15% -0.66%
management
Property rental 78,401,433.15 4.11% 53,810,156.97 2.71% 45.70%
By operating segment
Shenzhen 1,736,158,823.32 91.11% 1,570,922,892.64 79.01% 10.52%
Other 169,305,809.53 8.89% 417,376,947.60 20.99% -59.44%
Operating Division, Product Category or Operating Segment Contributing over 10% of Operating Revenue or Operating Profit
Applicable □ Not applicable
Unit: RMB
YoY change in YoY change in YoY change in
Operating Gross profit
Cost of sales operating cost of sales gross profit
revenue margin
revenue (%) (%) margin (%)
By operating division
Property 1,053,881,874.
695,191,661.52 34.04% -8.85% 107.70% -37.01%
development 68
Property
773,181,325.02 635,461,652.02 17.81% -0.66% -5.81% 4.49%
management
By product category
Property 1,053,881,874.
695,191,661.52 34.04% -8.85% 107.70% -37.01%
development 68
Property
773,181,325.02 635,461,652.02 17.81% -0.66% -5.81% 4.49%
management
20
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
By operating segment
Core business data of the prior year restated according to the changed statistical caliber for the Reporting Period:
□ Applicable Not applicable
IV Analysis of Non-Core Businesses
Applicable □ Not applicable
Unit: RMB
Amount As % of total profit Main source/reason Recurrent or not
Share of profits of joint
Return on investment 1,857,388.32 0.63% Yes
ventures
Inventory valuation
Asset impairments 2,045.93 0.00% Not
allowances
Reversal of non-
operating income
Non-operating income -204,898.03 -0.07% Not
recognized in previous
period
Payment of small non-
Non-operating expense 357,718.39 0.12% Not
operating expense
Allowances for
Credit impairment loss -13,610,779.58 -4.64% Not
doubtful accounts
V Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
Chang
30 June 2023 31 December 2022
e in Reason for any
As % of As % of percent significant
Amount total Amount total age change
assets assets (%)
Monetary Payment for
1,392,204,627.76 8.98% 1,517,528,893.83 9.60% -0.62%
assets land
Accounts
416,925,839.15 2.69% 419,933,915.30 2.66% 0.03%
receivable
Operating
Contract assets 110,384,064.37 0.71% 1,094,632.90 0.01% 0.70% revenue
carryforwards
Inventories 10,848,296,900.64 69.99% 10,975,334,223.37 69.46% 0.53%
Investment
405,664,937.06 2.62% 405,762,739.18 2.57% 0.05%
property
Long-term Increased
equity 81,575,705.63 0.53% 79,781,437.31 0.50% 0.03% returns from
investments joint ventures
Fixed assets 72,977,952.16 0.47% 82,745,172.12 0.52% -0.05%
Right-of-use
55,776,458.18 0.36% 70,168,415.65 0.44% -0.08%
assets
Operating
Contract
119,759,723.57 0.77% 920,828,040.81 5.83% -5.06% revenue
liabilities
carryforwards
21
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Long-term
4,172,450,268.17 26.92% 3,618,782,344.00 22.90% 4.02% New bank loan
borrowings
Lease liabilities 62,925,499.87 0.41% 77,963,283.55 0.49% -0.08%
Recovery of
certain current
accounts and
Other
624,876,343.49 4.03% 639,903,523.33 4.05% -0.02% increased
receivables
allowances for
doubtful
accounts
Increased debit
Other current balance of
70,987,410.26 0.46% 65,655,266.27 0.42% 0.04%
assets reclassified tax
payable
Deferred
Decreased land
income tax 1,353,238,186.66 8.73% 1,383,050,586.04 8.75% -0.02%
assets VAT provisions
Increased
Other non- prepayments
3,926,873.08 0.03% 2,750,873.08 0.02% 0.01%
current assets for fixed asset
purchase
Decreased
Accounts accounts
497,515,760.20 3.21% 608,283,388.52 3.85% -0.64%
payable payable for
engineering
Advances from Decreased
1,209,185.48 0.01% 2,260,847.31 0.01% 0.00%
customers rental advances
Increased
Other payables 1,704,126,936.52 10.99% 1,515,085,832.45 9.59% 1.40% dividends
payable
Other non-
current 128,251,841.93 0.83% 128,008,919.79 0.81% 0.02%
liabilities
2. Major Assets Overseas
□ Applicable Not applicable
3. Assets and Liabilities at Fair Value
Applicable □ Not applicable
Unit: RMB
Gain/loss
Impairme
on fair- Sold in
nt Purchas
value Cumulative fair- the
Beginning allowance ed in the Other Ending
Item changes in value changes Reporti
amount for the Reportin changes amount
the charged to equity ng
Reporting g Period
Reporting Period
Period
Period
Financial
assets
4.
Investment
s in other 887,838.64 -275,978.56 23,495.57 635,355.65
equity
instruments
22
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Total of the
887,837.64 -275,978.56 23,495.57 635,355.65
above
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
4. Restricted Asset Rights as at the Period-End
Item Ending carrying value Reason for restriction
Monetary assets 15,539,145.06 [Note 1]-[Note 9]
Land use rights at Fumin New Village, Futian District,
542,507,314.43 [Note 10]
Shenzhen
Total 558,046,459.49
Note 1: In terms of monetary assets with restricted right to use at the period-end, there was a bank guarantee money of
RMB2,200,000.00 of the subsidiary company Shenzhen Shenfubao Property Development Co., Ltd.
Note 2: In terms of monetary assets with restricted right to use at the period-end, there was 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 RMB1,132,452.99
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 RMB5,270,833.33 of interest on 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 RMB90,000.00 of the subsidiary SZPRD
Xuzhou Dapeng Real Estate Development Co., Ltd. frozen due to house sale contract dispute case.
Note 7: In terms of monetary assets with restricted right to use at the period-end, there was RMB129,315.23 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 POS security deposit of RMB1,500.00
of subsidiary Shandong Shenguomao Real Estate Management Co., Ltd.
Note 9: In terms of monetary assets with restricted right to use at the period-end, there was RMB3,255,416.01 of supervision funds
for real estate projects of the subsidiary Shenzhen Guangming Wuhe Real Estate Co., Ltd.
Note 10: Due to the needs of daily business activities, the Company applied for a loan from Bank of Communications Co., Ltd.
Shenzhen Branch and mortgaged the land use right of Fumin New Village, Futian District. The loan has a duration from November
27, 2020 to November 27, 2023 and applies floating interest rates.
23
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
VI Investments Made
1. Total Investment Amount
□ Applicable Not applicable
2. Major Equity Investments Made in the Reporting Period
□ Applicable Not applicable
3. Major Non-Equity Investments Ongoing in the Reporting Period
□ Applicable Not applicable
4. Financial Investments
(1) Securities Investments
Applicable □ Not applicable
Unit: RMB
Gain/
Loss
Accum
on
ulated Purc Gain/
Na Initial Accou fair Sold
Begin fair hased loss Endin Source
me nting value in
invest ning value in in g Accou of
Variety of Code of of measur chan Repo
ment carryi change Repo Repo carryi nting invest
security security sec ement ges rting
ng s rting rting ng title ment
urit cost metho in Perio
value charge Perio Perio value funds
y d Repo d
d to d d
rting
equity
Perio
d
Jinti Invest
Obtain
an Fair ments
Domestic - 23,4 ed in
in
400016, A, 3,565, value 887,8 635,3 Jintian
/Foreign 0.00 275,97 0.00 0.00 95.5 other
420016 Jinti 856.06 metho 38.64 55.65 ’s debt
stock 8.56 7 equity
an d restruc
instru
turing
B ments
- 23,4
3,565, 887,8 635,3
Total -- 0.00 275,97 0.00 0.00 95.5 -- --
856.06 38.64 55.65
8.56 7
(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.
24
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
VII Sale of Major Assets and Equity Investments
1. Sale of Major Assets
□ Applicable Not applicable
No such cases in the Reporting Period.
2. Sale of Major Equity Investments
□ Applicable Not applicable
VIII 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
Relationshi Principal Registered Operating Operating
Name p with the activity Total assets Net assets Net profit
capital revenue profit
Company
Shenzhen
Developme
Huangchen
nt and sales 30,000,000. 7,928,799,2 2,983,146,1 77,467,506. 16,115,613. 10,982,642.
g Real Subsidiary
of real 00 88.86 16.24 32 20 51
Estate Co.,
estate
Ltd.
Shenzhen
Internation
al Trade Property
20,000,000. 1,754,993,4 352,717,97 786,271,46 59,099,970. 41,591,766.
Center Subsidiary manageme
Property nt services 00 00.24 7.70 6.76 86 73
Manageme
nt Co., Ltd.
Subsidiaries obtained or disposed in the Reporting Period
Applicable □ Not applicable
How subsidiary was obtained or disposed Effects on overall operations and
Subsidiary
in the Reporting Period operating performance
Revenue: RMB0
Zhanjiang Branch of SZPRD Deregistration
Net profit: RMB61,400
Notes to the principal subsidiaries and joint stock companies:
IX Structured Bodies Controlled by the Company
□ Applicable Not applicable
X Risks Facing the Company and Countermeasures
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
25
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
confronted with complicated conditions and formidable obstacles and the Company's business and development face opportunities
and challenges.
Under grim circumstances, the Company thoroughly studied the opportunities and challenges brought about by macroeconomic
trends and policy movements, actively sought the strategic breakthrough direction and adhered to prudent operation. Additionally, it
raised funds from multiple channels, focused on enhancing the management level and seized opportunities in the land market. Based
in Shenzhen, the Company aims to extend its presence to the Guangdong-Hong Kong-Macao metropolitan area and surrounding
areas and strives to improve its sustainable development capabilities.
2. Land Reserve Risk
As a matter of fact, the Company still lacks enough land reserves and development power at later stages. In recent years, the supply
of residential land on Shenzhen Market has continuously declined. Various large-scale real estate enterprises have enlarged their
market shares and accelerated their M&A pace. While the real estate industry is centralizing, the degree of centralization of the land
reserve scale has also been enhanced. As the external environment and the industry’s trend become much more complicated and
severe, the increment market scale will further shrink and the market competition will become increasingly fierce.
Facing the challenges, the Company will continue to expand through market competition, capital operation and urban renewal,
increase land reserves and promote the launch of projects. In respect to property type, residential projects will focus on Guangdong-
Hong Kong-Macao Greater Bay Area, Yangtze River Delta metropolitan area and areas where existing projects locate, and gradually
turn to central urban agglomeration surrounding Wuhan, key cities in Chengdu- Chongqing in the West and those in Beijing, Tianjin
and Hebei. Urban renewal projects will focus on Shenzhen, Dongguan and Huizhou, and follow-up of urban renewal projects in
Guangzhou. Comprehensive industry and urban projects will focus on Guangdong-Hong Kong-Macao Greater Bay Area, Yangtze
River Delta region, Wuhan region in the central part and Chengdu-Chongqing area in the West.
3. Financing Risk
In the process of actively increasing land reserves and accelerating the business development in the recent years, the Company needs
to invest a large amount of funds for land acquisition and project development. In addition to its own funds, the Company’s project
development funds need to be externally financed through bank loans and issuing securities.
Currently, the Company has steady financial situation and good credit condition, and will further strictly control financial risks,
actively explore various financing channels so as to raise funds for project development in the future.
26
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Part IV Corporate Governance
I Annual and Extraordinary General Meeting Convened during the Reporting Period
1. General Meetings Convened during the Reporting Period
Investor
Meeting Type participati Convened date Disclosure date Resolution of the meeting
on ratio
The Meeting considered and
approved the Report on the Work
of the Board of Directors for
2022, the Report on the Work of
the Supervisory Committee for
2022, the Annual Report 2022,
the Report on the Financial
Accounts for 2022, the Report on
the Financial Budget for 2023, the
Proposal on the Distribution of
Profits and Capitalization of
The 2022 Capital Reserve for 2022, the
Annual Annual General
60.01% 19 May 2023 20 May 2023 Proposal on the Comprehensive
General Meeting
Meeting Credit Line and Financing Limit
for 2023, the Proposal to Expect
Continuing Related-party
Transactions for 2023 and the
Proposal to Renew the
Appointment of Accounting Firm,
etc. For details, please refer to the
Announcement of Resolutions of
the Annual General Meeting of
Shareholders for 2022 with the
number 2023-12 on Cninfo
(www.cninfo.com.cn).
2. Extraordinary General Meetings Convened at the Request of Preference Shareholders with Resumed
Voting Rights
□ Applicable Not applicable
II Changes in Directors, Supervisors and Senior Management
□ Applicable Not applicable
No such cases in the Reporting Period. See the Annual Report 2022 for details.
III Interim Dividend Plan
□ Applicable Not applicable
The Company has no interim dividend plan, either in the form of cash or stock.
27
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
IV Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures
for Employees
□ Applicable Not applicable
No such cases in the Reporting Period.
28
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Part V Environmental and Social Responsibility
I Major Environmental Issues
Indicate by tick mark whether the Company or any of its subsidiaries is a heavily polluting business identified by the environmental
protection authorities of China.
□ Yes No
Administrative penalties imposed for environmental issues during the Reporting Period
Name of the Impact on the
Remediation
company or production and
Penalty reason Violation situation Penalty result measures of the
subsidiary operation of the
Company
company listed companies
N/A N/A N/A N/A N/A N/A
Other environmental information disclosed with reference to key emission units
The Company attaches great importance to environmental protection and strictly implements relevant laws and regulations. During
the Reporting Period, no major environmental violations occurred and no administrative penalties were imposed on environmental
protection.
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
(I) Visit Party members and employees in difficulty.
In order to strengthen the people-centred development philosophy and implement the Group's work mechanism of assistance in
depth, on the afternoon of 16 January, the Party Committee of the Shenzhen Property Group held a symposium to extend regards
to the Party members and employees in difficulty before the Spring Festival. Before the visit, the Group conducted overall and
scrupulous investigation, identification and category-based registration and record, and confirmed 55 persons as the targets in need
of assistance, including 12 Party members in difficulty. During the symposium, Group leaders communicated earnestly 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 progress made in the major projects in
2022 and the Group's deployment of key tasks for 2023, while sincerely thanking all the Party members and employees in
difficulty for their performance of duties in spite of numerous difficulties. He encouraged the Party members and employees in
difficulty to stay confident in life and to overcome their difficulties as soon as possible. Besides, he said the Party organisations at
all levels of the Group would establish a long-term mechanism to assist the Party members and employees in difficulty.
On the occasion of upcoming Spring Festival, the Party Committee of the Group combined the publicity of the guiding principles
of the 20th CPC National Congress effectively with the visit, thereby enabling the Party members and employees in difficulty to
feel warmth and care from the Party organisations. After the symposium, Group leaders delivered supplies and funds to the Party
members and employees in difficulty to help them have a peaceful and comfortable Spring Festival.
(II) Carry out blood donation activity.
29
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
In the first half of 2023, the Party Committee of ITC Property Management organised its affiliated Party organisations and
enterprises under its administration to carry out a month of nationwide blood donation activity themed "red flag, red action" for the
year 2023 in order to further the learning and implementation of Xi Jinping Thought on Socialism with Chinese Characteristics for
a New Era and the guiding principles of the 20th CPC National Congress, conduct the task "I do practical things for the masses" in
detail and effect, continue to advance ITC Property Management's Party building brand development featuring "Perfect ITC",
adhere to the guidance of "Consummate Culture", give full play to the social responsibility of ITC Property Management, and
demonstrate the amicability and sympathy of the Company's employees. So far, 15 enterprises have carried out the blood donation
activity, covering Shandong, Chongqing, Baoding, Hangzhou, Manzhouli, Hulun Buir, Yangzhou and other cities. 617 employees
joined the activity, 472 of whom donated 159,900 millilitres of blood in total.
(III) Carry out beverage delivery activity for workers on constructions sites
On 14 July 2023, to ensure the safe work of front-line workers at high temperature and facilitate the completion of dismantling and
relocation project of Tianjun Industrial Park site on schedule, the general Party branch of Wuhe Urban Renewal Company carried
out the activity themed by "deliver beverages to construction sites, pool solidarity and strength to facilitate development" and
delivered cool and refreshing tea drink to the front-line workers on sites of the dismantling project, enabling the workers to feel
cool and comfortable in the intense heat.
III Efforts in Poverty Alleviation and Rural Revitalization
SZPRD and its affiliated business organisations organised and carried out consumption assistance activity, and spent RMB980,000
in total on the procurement of agricultural products through consumption assistance in the first half of 2023.
30
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Part VI Significant Events
I Commitments of the Company’s De Facto 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
No such cases in the Reporting Period.
II Occupation of the Company’s Capital by the Controlling Shareholder or any of 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 Engagement and Disengagement of Independent Auditor
Are the interim financial statements audited?
□Yes No
This Interim Report is unaudited.
V Explanations Given by the Board of Directors and the Supervisory Committee Regarding
the Independent Auditor's “Modified Opinion” on the Financial Statements of the
Reporting Period
□ Applicable Not applicable
VI Explanations Given by the Board of Directors Regarding the Independent Auditor's
“Modified Opinion” on the Financial Statements of Last Year
□ Applicable Not applicable
VII Insolvency and Reorganization
□ Applicable Not applicable
No such cases in the Reporting Period.
31
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
VIII Legal Matters
Significant lawsuits and arbitrations:
Applicable □ Not applicable
Index
Involve
Executi to
d Disclo
Provis on of disclo
General information amount Progress Decisions and effects sure
ion decision sed
(RMB’0 date
s inform
,000)
ation
Arbitration awards on
two cases were given
on 23 and 24 March
2023 successively.
According to the
conclusion of
arbitration awards, the
High-tech Zone
Branch should return
approximately
RMB540,000 of
Arbitration case of property public revenue to the
contract dispute between the Owners' Committee
Fourth Owners' Committee of of Shenzhen Nanshan
Shenzhen Nanshan District District Software Park
Software Park (Applicant) and (in spite of RMB32
Shenzhen ITC Technology Park The arbitral million requested by
In
Service Co., Ltd. (Respondent 1), tribunal has the Owners'
73.53 Not executio
the Branch in High-Tech Zone rendered an Committee) and bear
n
(Respondent 2) for Software Park arbitral award a part of arbitration
Phase I. The Applicant requested fee; in regard to the
an award to the Respondent 1 and arbitration case
2 to return the owners' public between the ITC
revenue and bear the attorney's Technology Park
fees. Company and the
Owners' Committee
of Shenzhen Nanshan
District Software
Park, all requests of
the latter have been
rejected by the
arbitration tribunal (in
spite of RMB13
million requested by
the Owners'
Committee).
Shenzhen Qitian Sunshine Hotel
Management Co., Ltd. (plaintiff)
sued ShenZhen Properties &
Resources Development (Group) The court has The court has rejected
Ltd. (defendant) for property rendered a the appeal request of In
leasing contract dispute, 105.09 Not judgment of Qitian Sunshine Hotel executio
requesting the defendant to pay second and upheld the n
compensation for interior instance original verdict
decoration of the relocated house
and relocation fee of the leased
house and to return the subsidy
32
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
fee of the leased house, etc. The
first instance judgment reads that
the plaintiff Shenzhen Qitian
Sunshine Hotel Management Co.,
Ltd. shall pay rent of
RMB1,050,913.6 to the defendant
ShenZhen Properties & Resources
Development (Group) Ltd. within
10 days from the effective date of
this judgment. Shenzhen Qitian
Sunshine Hotel Management Co.,
Ltd. filed an appeal against the
judgment.
The case has
proceeded to
the stage of
appointment
of arbitrators
who will
constitute the
arbitration
tribunal.
Recently, the
Since the violation of the Equity respondent
Transfer Contract for the Urban has filed an
Renewal Project in Bangling appeal for
Community, Guanlan Subdistrict, confirmation
Longhua District, Shenzhen City of force of the
committed by the Shenzhen arbitration
Xinhai Rongyao Real Estate agreement to
Development Co., Ltd. the Shenzhen
constituted material breach of Intermediate
contract, according to provisions 17,133.6 People's
Not Not yet Not yet
of the contract, the Company is 8 Court,
entitled to require Shenzhen resulting in
Xinhai Rongyao Real Estate suspension of
Development Co., Ltd. to pay the arbitration
compensation for its investment court's trial on
loss at an annual interest rate of the case. After
11% of the capital the Company the
invested in the Lanhushidai confirmation
project. Therefore, the Company of force of the
filed an arbitration. arbitration
agreement is
concluded by
the court, the
arbitration
court will
inform both
parties of
recovery of
the arbitration
proceedings.
33
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
On 26 February 2019, the
Company signed Repayment
Agreement with Rongyao Real
Estate, Shenzhen Xinhai Rongyao
Real Estate Development Co.,
Ltd. and Shenzhen Xinhai
Holding Co., Ltd. For details, see
Announcement on the Signing of
Repayment Agreement
(Announcement No.: 2019-9)
disclosed by the Company on
http://www.cninfo.com.cn.
According to provisions of the
Enter the
Repayment Agreement, Shenzhen
stage of
Xinhai Rongyao Real Estate No.
72,218.2 appointing 9 June
Development Co., Ltd. and Not Not yet Not yet 2023-
2 arbitrator to 2023
Shenzhen Xinhai Holding Co., 13
set up arbitral
Ltd. acknowledge to settle their
tribunal
debts to Rongyao Real Estate.
However, Shenzhen Xinhai
Investment Development Co.,
Ltd., Shenzhen Chengjian Real
Estate Management Co., Ltd.,
Shenzhen Lianghong Industry
Co., Ltd. and Shenzhen Huaye
Tiancheng Investment Co., Ltd.,
as their guarantors who assume
joint and several liability, failed to
settle all debts as required by the
agreement. Therefore, Rongyao
Real Estate filed an arbitration.
See
See Part
Part X
X
Financ See Part X
Summary of other contract See Part X Financial Financia
9,757.66 ial Financial
disputes Report-XIV-2 l
Report Report-XIV-2
Report-
-XIV-
XIV-2
2
Other legal matters
□ Applicable Not applicable
IX Punishments and Rectifications
□ Applicable Not applicable
X Credit Quality of the Company as well as its Controlling Shareholder and De Facto
Controller
□ Applicable Not applicable
34
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
XI Major Related-Party Transactions
1. Continuing Related-Party Transactions
Applicable □ Not applicable
As % Obtai
of Approv Over nable
Relati
total ed the marke Index to
onship Type Specifi Prici Total Meth
Trans value transac appr t price Discl disclose
Relate with of c ng value od of
action of all tion oved for osure d
d party the transa transac prin (RMB’ settle
price same- line line same- date informat
Comp ction tion ciple 0,000) ment
type (RMB’ or type ion
any
transa 0,000) not transa
ctions ctions
Relate
d-
party
Wholl
transa
Shenzh y-
ctions
en Bay owned Proper
gover Mar
Techno subsidi ty Agree
ning
logy ary of manag ket 3,376.7 6,904.2 3,376.
sales ment 4.37% No Cash
Develo the ement prin 2 5 72
of price
pment Comp service ciple
comm
Co., any as s
odity
Ltd. the
and
parent
provid
ing of
labors
Relate Announ
d- cement
party Proper on
Hebei
Sub- transa ty Estimat
Shenba
subsidi ctions manag ed
o gover
ary of ement Mar Continu
Invest ning Agree
the service ket 3,012.6 3,574.0 3,012. ing
ment sales ment 3.90% No Cash 25
Comp of s and prin 8 1 68 Related-
Develo price Marc
any as comm engine ciple party
pment h
the odity ering Transact
Co., 2023
parent and service ions in
Ltd. provid s 2023
ing of
labors (No.:
Relate 2023-
d- 05)
party disclose
Wholl
transa d on
Shenzh y-
ctions Cninfo
en Bay owned
gover
Techno subsidi Manag Mar
ning Agree
logy ary of ement ket 3,767.3 3,767.
purch ment 5.93% 8,160 No Cash
Develo the service prin 7 37
ase of price
pment Comp s ciple
comm
Co., any as
odity
Ltd. the
and
parent
provid
ing of
labors
Shenzh Wholl Truste
Mar
en y- e Agree
Truste ket 3,067.8 39.13 6,361.6 3,067.
Shento owned manag ment No Cash
eship prin 7 % 1 87
u Real subsidi ement price
ciple
Estate ary of service
35
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Develo the s of
pment Comp houses
Co.,Lt any as
d. the
parent
13,224. 24,999.
Total -- -- -- -- -- -- -- --
64 87
Large-amount sales return in detail N/A
Give the actual situation in the
Reporting Period (if any) where an The total amount of continuing related-party transactions of the Company in 2023 is
estimate had been made for the total
expected to be RMB342,640,300, and actual total amount of continuing related-party
value of continuing related-party
transactions by type to occur in the transactions in H1 2023 is lower than the approved line.
Reporting Period
Reason for any significant difference
between the transaction price and the N/A
market reference price (if applicable)
2. Related-Party Transactions Regarding Purchase or Disposal of Assets or Equity Investments
□ 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
Amounts due from related parties:
Amount
Capital Amount
newly
Relations occupatio Beginnin received Current Ending
added in
Related hip with n for non- g balance in current Interest interest balance
Reason current
party the operating (RMB’0,0 period rate (RMB’0,0 (RMB’0,0
period
Company purposes 00) (RMB’0,0 00) 00)
(RMB’0,0
(yes/no) 00)
00)
The
parent
company
of the Business
Shenzhen subsidiary circulatin
Xinhai Rongyao g funds
No 20,150 20,150
Holdings Real before
Co., Ltd. Estate’s acquisitio
minority n
sharehold
er Xinhai
Rongyao
36
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Shenzhen
Minority
Xinhai Business
sharehold
Rongyao circulatin
er of the
Real g funds
subsidiary No 33,047.29 33,047.29
Estate before
Rongyao
Develop acquisitio
Real
ment Co., n
Estate
Ltd.
Influence on the
Company’s operating All were within the risks control of the Company and not influenced the operating results and the
results and financial financial conditions.
condition
Amounts due to related parties:
Amount
Amount
newly
Beginning returned in Current Ending
Relation added in
Related Formation balance current interest balance
with the current Interest rate
party reason (RMB’0,00 period (RMB’0,00 (RMB’0,00
Company period
0) (RMB’0,00 0) 0)
(RMB’0,00
0)
0)
Shenzhen
Jifa Joint ventur Current
4,229.67 4,229.67
Warehouse e account
Co., Ltd.
Shenzhen
Tian’an
Internation
Joint ventur Current
al Building 521.43 521.43
e account
Property
Manageme
nt Co., Ltd.
Influence on the
Company’s operating All were within the risks control of the Company and not influenced the operating results and the
results and financial financial conditions.
condition
5. Transactions with Related Finance Companies
□ Applicable Not applicable
The Company did not make deposits in, receive loans or credit from and was not involved in any other finance business with any
related finance company or any other related parties.
6. Transactions with Related Parties by Finance Companies Controlled by the Company
□ Applicable Not applicable
The finance company controlled by the Company did not make deposits, receive loans or credit from and was not involved in any
other finance business with any related parties.
7. Other Major Related-Party Transactions
□ Applicable Not applicable
No such cases in the Reporting Period.
37
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
XII 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
of the Line of Actual Type of Counter- 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
of the Line of Actual Type of Counter- Term of Having e for a
guarante Collatera
Obligor guarante guarante occurren guarante guarante guarante expired related
e l (if any)
e line e ce date e e (if any) e or not party or
amount
announc not
ement
Shenzhe
n 27
Rongyao Novemb
18 27
Real Joint- er 2019
October 500,000 Novemb 305,877 No Yes
Estate liability to 20
2019 er 2019
Develop Novemb
ment
er 2024
Co., Ltd.
Total approved line Total actual amount
for such guarantees of such guarantees in
5,947
in the Reporting the Reporting Period
Period (B1) (B2)
Total approved line Total actual balance
for such guarantees 500,000 of such guarantees at 305,877
at the end of the the end of the
38
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Reporting Period Reporting Period
(B3) (B4)
Guarantees provided between subsidiaries
Disclosu
re date Guarante
Actual
of the Line of Actual Type of Counter- Term of Having e for a
guarante Collatera
Obligor guarante guarante occurren guarante guarante guarante expired related
e l (if any)
e line e ce date e e (if any) e or not party or
amount
announc not
ement
Total guarantee amount (total of the three kinds of guarantees above)
Total guarantee line Total actual
approved in the guarantee amount in
5,947
Reporting Period the Reporting Period
(A1+B1+C1) (A2+B2+C2)
Total actual
Total approved
guarantee balance at
guarantee line at the
500,000 the end of the 305,877
end of the Reporting
Reporting Period
Period (A3+B3+C3)
(A4+B4+C4)
Total actual guarantee amount (A4+B4+C4)
69.23%
as % of the Company’s net assets
Of which:
Balance of debt guarantees provided directly
or indirectly for obligors with an over 70% 305,877
debt/asset ratio (E)
Total of the three amounts above (D+E+F) 305,877
Compound guarantees:
3. Cash Entrusted for Wealth Management
□ Applicable Not applicable
No such cases in the Reporting Period.
4. Other Major Contracts
□ Applicable Not applicable
No such cases in the Reporting Period.
XIII Other Significant Events
Applicable □ Not applicable
Significant arbitration event of subsidiary: During the Reporting Period, Shenzhen International Arbitration Court formally
accepted the case of civil loan dispute between the Company’s subsidiary Shenzhen Rongyao Real Estate Development Co., Ltd.
and Shenzhen Xinhai Rongyao Real Estate Development Co., Ltd., etc. which involves a provisional total amount of
RMB722,182,200. As of the disclosure date of this report, the case has not yet come to trial. The influence of this arbitration
matter on the Company’s profit for the current period or profit after the period is still uncertain, and the final actual impact shall be
subject to the decision of the Arbitration Court. The Company will carry out the corresponding accounting treatment based on the
process and results of the case and in accordance with the requirements of relevant accounting standard as well as the actual
situation and fulfil its information disclosure obligation in a timely manner. See the Announcement on Significant Arbitration
Event of Subsidiary (Announcement No.: 2023-13) disclosed by the Company on Cninfo dated 9 June 2023 for details.
39
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
XIV Significant Events of Subsidiaries
□Applicable Not applicable
40
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Part VII Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
Increase/decrease in the Reporting Period
Before After
(+/-)
Shares
Shares as
as divide
divide nd
Percentag New nd conver Oth Subt Percentag
Shares Shares
e (%) issues conver ted er otal e (%)
ted from
from capital
profit reserv
es
1,898,306 0.32% 0 0 0 0 0 1,898,306 0.32%
I. Restricted shares
1. Shares held by State 0 0.00% 0 0 0 0 0 0 0.00%
2. Shares held by state-
3,326 0.00% 0 0 0 0 0 3,326 0.00%
owned legal person
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 natural 0 0.00% 0 0 0 0 0 0 0.00%
person
4. Shares held by foreign
0 0.00% 0 0 0 0 0 0 0.00%
investors
Among which: Shares
held by foreign legal 0 0.00% 0 0 0 0 0 0 0.00%
person
Shares
held by foreign natural 0 0.00% 0 0 0 0 0 0 0.00%
person
594,080,786 99.68% 0 0 0 0 0 594,080,786 99.68%
II. Unrestricted shares
1. RMB common shares 526,475,543 88.34% 0 0 0 0 0 526,475,543 88.34%
2. Domestically listed
67,605,243 11.34% 0 0 0 0 0 67,605,243 11.34%
foreign shares
3. Overseas listed foreign
0 0.00% 0 0 0 0 0 0 0.00%
shares
4. Others 0 0.00% 0 0 0 0 0 0 0.00%
III. Total shares 595,979,092 100.00% 0 0 0 0 0 595,979,092 100.00%
Reasons for share changes:
□ Applicable Not applicable
Approval of share changes:
41
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
□ Applicable Not applicable
Transfer of share ownership:
□ Applicable Not applicable
Progress on any share repurchases:
□ Applicable Not applicable
Progress on reducing the repurchased shares by means of centralized bidding:
□ 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
□ Applicable Not applicable
III Shareholders and Their Holdings as at the Period-End
Unit: share
Total number of preference
Total number of ordinary shareholders
43,195 shareholders with resumed voting rights 0
at the period-end
at the period-end (if any)
5% or greater ordinary shareholders or the top 10 ordinary shareholders
Increase/d Number Pledged,
Shareho Number of
Total shares ecrease of marked or
Name of Nature of lding non-
held at the during the restricted frozen shares
shareholder shareholder percenta restricted
period-end Reporting shares Numb
ge (%) shares held Status
Period held er
Shenzhen
State-owned
Investment 50.57% 301,414,637 0 3,326 301,411,311
legal person
Holdings Co., Ltd.
Shenzhen State-
Domestic non-
owned Equity
state-owned 6.38% 38,037,890 0 0 38,037,890
Management Co.,
legal person
Ltd.
China Orient Asset
State-owned
Management Co., 2.77% 16,491,402 0 0 16,491,402
legal person
Ltd.
Domestic
Wang Zhong 0.32% 1,878,100 1,878,100 0 1,878,100
natural person
Domestic
Duan Shaoteng 0.29% 1,755,565 0 0 1,755,565
natural person
Shenzhen Duty-Free
Domestic non-
Commodity
state-owned 0.29% 1,730,300 0 1,730,300 0
Enterprises Co.,
legal person
Ltd.
42
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Industrial and
Commercial Bank
of China Limited－
Southern China
Securities Full
Other 0.29% 1,728,434 616,900 0 1,728,434
Index Real Estate
Trading Open-
ended Index
Securities
Investment Fund
Domestic
Yang Yaochu 0.28% 1,640,984 0 0 1,640,984
natural person
Domestic
Li Xinyi 0.25% 1,500,000 0 0 1,500,000
natural person
Hong Kong
Foreign legal
Securities Clearing 0.23% 1,369,074 396,561 0 1,369,074
person
Company Ltd.
Strategic investor or general legal
person becoming a top-10 ordinary N/A
shareholder due to rights issue (if any)
The largest shareholder, Shenzhen Investment Holdings Co., Ltd., is the controlling
Related or acting-in-concert parties shareholder of the Company and Shenzhen State-owned Equity Management Co., Ltd.
among the shareholders above And the Company does not know whether there are related parties or acting-in-concert
parties among the other shareholders.
Explain if any of the shareholders
above was involved in entrusting/being
N/A
entrusted with voting rights or waiving
voting rights
Special account for share repurchases
N/A
(if any) among the top 10 shareholders
Top 10 unrestricted shareholders
Shares by type
Name of shareholder Unrestricted shares held at the period-end
Type Shares
Shenzhen Investment Holdings Co., 301,411,3
301,411,311 RMB ordinary share
Ltd. 11
Shenzhen State-owned Equity 38,037,89
38,037,890 RMB ordinary share
Management Co., Ltd. 0
China Orient Asset Management Co., 16,491,40
16,491,402 RMB ordinary share
Ltd. 2
Wang Zhong 1,878,100 RMB ordinary share 1,878,100
Duan Shaoteng 1,755,565 RMB ordinary share 1,755,565
Industrial and Commercial Bank of
China Limited－Southern China
Securities Full Index Real Estate 1,728,434 RMB ordinary share 1,728,434
Trading Open-ended Index Securities
Investment Fund
Domestically listed
Yang Yaochu 1,640,984 1,640,984
foreign share
Li Xinyi 1,500,000 RMB ordinary share 1,500,000
Hong Kong Securities Clearing
1,369,074 RMB ordinary share 1,369,074
Company Ltd.
Domestically listed
Mai Furong 1,244,596 1,244,596
foreign share
Related or acting-in-concert parties The largest shareholder, Shenzhen Investment Holdings Co., Ltd., is the controlling
43
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
among top 10 unrestricted public shareholder of the Company and Shenzhen State-owned Equity Management Co., Ltd.
shareholders, as well as between top 10 And the Company does not know whether there are related parties or acting-in-concert
unrestricted public shareholders and top parties among the other shareholders.
10 shareholders
Top 10 ordinary shareholders involved
N/A
in securities margin trading (if any)
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the
Company conducted any promissory repo during the Reporting Period.
□ Yes No
No such cases in the Reporting Period.
IV Change in Shareholdings of Directors, Supervisors and Senior Management
□ Applicable Not applicable
There were no changes in shareholdings of directors, supervisors, and senior management in the Reporting Period. For details, see
the 2022 Annual Report.
V Change of the Controlling Shareholder or the Actual Controller
Change of the controlling shareholder in the Reporting Period
□ Applicable Not applicable
The controlling shareholder remained the same in the Reporting Period.
Change of the actual controller in the Reporting Period
□ Applicable Not applicable
The actual controller remained the same in the Reporting Period.
44
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Part VIII Preference Shares
□ Applicable Not applicable
No preference shares in the Reporting Period.
45
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Part IX Bonds
□ Applicable Not applicable
46
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Part X Financial Statements
I. Auditor’s Report
Are these interim financial statements audited by an independent auditor?
□ Yes No
These interim financial statements have not been audited by an independent auditor.
II Financial Statements
Currency unit for the financial statements and the notes thereto: RMB
1. Consolidated Balance Sheet
Prepared by Shenzhen Properties & Resources Development (Group) Ltd.
30 June 2023
Unit: RMB
Item 30 June 2023 1 January 2023
Current assets:
Monetary assets 1,392,204,627.76 1,517,528,893.83
Settlement reserve
Interbank loans granted
Held-for-trading financial assets
Derivative financial assets
Notes receivable 0.00 0.00
Accounts receivable 416,925,839.15 419,933,915.30
Accounts receivable financing
Prepayments 10,207,824.31 100,341,806.56
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract reserve
Other receivables 624,876,343.49 639,903,523.33
Including: Interest receivable 0.00 0.00
Dividends receivable 0.00 0.00
Financial assets purchased under resale
agreements
Inventories 10,848,296,900.64 10,975,334,223.37
Contract assets 110,384,064.37 1,094,632.90
Assets held for sale
Current portion of non-current assets
Other current assets 70,987,410.26 65,655,266.27
Total current assets 13,473,883,009.98 13,719,792,261.56
Non-current assets:
Loans and advances to customers
Investments in debt obligations
Investments in other debt obligations
Long-term receivables 21,920,095.92 22,651,454.07
Long-term equity investments 81,575,705.63 79,781,437.31
Investments in other equity
635,355.65 887,838.64
instruments
Other non-current financial assets
47
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Investment property 405,664,937.06 405,762,739.18
Fixed assets 72,977,952.16 82,745,172.12
Construction in progress
Productive living assets
Oil and gas assets
Right-of-use assets 55,776,458.18 70,168,415.65
Intangible assets 946,082.32 1,269,382.91
Development costs
Goodwill 9,446,847.38 9,446,847.38
Long-term prepaid expense 19,591,506.08 21,980,602.46
Deferred income tax assets 1,353,192,386.31 1,383,050,586.04
Other non-current assets 3,926,873.08 2,750,873.08
Total non-current assets 2,025,654,199.77 2,080,495,348.84
Total assets 15,499,537,209.75 15,800,287,610.40
Current liabilities:
Short-term borrowings
Borrowings from the central bank
Interbank loans obtained
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 497,515,760.20 608,283,388.52
Advances from customers 1,209,185.48 2,260,847.31
Contract liabilities 119,759,723.57 920,828,040.81
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 193,072,434.89 239,126,392.02
Taxes payable 3,925,399,672.99 3,917,278,346.81
Other payables 1,704,126,936.52 1,515,085,832.45
Including: Interest payable 0.00 0.00
Dividends payable 227,351,128.25 12,202,676.04
Handling charges and commissions
payable
Reinsurance payables
Liabilities directly associated with
assets held for sale
Current portion of non-current liabilities 222,669,043.37 218,858,766.82
Other current liabilities 3,392,989.52 83,991,786.83
Total current liabilities 6,667,145,746.54 7,505,713,401.57
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 4,172,450,268.17 3,618,782,344.00
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 62,925,499.87 77,963,283.55
Long-term payables 0.00 0.00
Long-term employee benefits payable 0.00 0.00
Provisions 766,612.52 766,612.52
Deferred income 0.00 0.00
Deferred income tax liabilities 174,168.87 241,978.54
Other non-current liabilities 128,251,841.93 128,008,919.79
Total non-current liabilities 4,364,568,391.36 3,825,763,138.40
Total liabilities 11,031,714,137.90 11,331,476,539.97
48
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Owners’ equity:
Share capital 595,979,092.00 595,979,092.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 80,488,045.38 80,488,045.38
Less: Treasury stock 0.00 0.00
Other comprehensive income -2,450,357.68 -3,854,377.95
Specific reserve
Surplus reserves 48,886,605.81 48,886,605.81
General reserve
Retained earnings 3,695,166,352.46 3,691,056,182.73
Total equity attributable to owners of the
4,418,069,737.97 4,412,555,547.97
Company as the parent
Non-controlling interests 49,753,333.88 56,255,522.46
Total owners’ equity 4,467,823,071.85 4,468,811,070.43
Total liabilities and owners’ equity 15,499,537,209.75 15,800,287,610.40
Legal representative: Liu Shengxiang Head of financial affairs: Cai Lili
Head of the financial department: Liu Qiang
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 30 June 2023 1 January 2023
Current assets:
Monetary assets 732,674,528.27 532,263,736.63
Held-for-trading financial assets
Derivative financial assets
Notes receivable
Accounts receivable 2,719,055.69 5,137,042.71
Accounts receivable financing
Prepayments
Other receivables 4,596,372,355.43 5,162,396,869.45
Including: Interest receivable
Dividends receivable 151,433,108.41 151,433,108.41
Inventories 93,126,982.22 793,075,051.53
Contract assets 109,392,112.37
Assets held for sale
Current portion of non-current assets
Other current assets 1,025,446.90 18,130,015.97
Total current assets 5,535,310,480.88 6,511,002,716.29
Non-current assets:
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 1,449,541,586.02 1,447,747,317.70
Investments in other equity
865,855.65 1,118,338.64
instruments
Other non-current financial assets
Investment property 264,768,426.75 260,599,477.89
Fixed assets 26,787,980.94 31,577,309.67
Construction in progress
49
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Productive living assets
Oil and gas assets
Right-of-use assets 3,413,718.30 3,238,351.85
Intangible assets
Development costs
Goodwill
Long-term prepaid expense 580,220.67 860,115.06
Deferred income tax assets 90,295,008.03 152,942,094.59
Other non-current assets 2,511,552,650.86 2,362,376,650.86
Total non-current assets 4,347,805,447.22 4,260,459,656.26
Total assets 9,883,115,928.10 10,771,462,372.55
Current liabilities:
Short-term borrowings
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 54,032,590.97 41,228,778.20
Advances from customers 0.00 952,186.65
Contract liabilities 0.00 840,878,470.63
Employee benefits payable 50,427,323.40 56,425,731.67
Taxes payable 4,149,081.01 1,783,757.84
Other payables 7,341,237,233.98 7,258,663,180.38
Including: Interest payable
Dividends payable 215,178,094.61 29,642.40
Liabilities directly associated with
assets held for sale
Current portion of non-current
190,309,485.27 190,431,469.82
liabilities
Other current liabilities 0.00 75,679,062.35
Total current liabilities 7,640,155,714.63 8,466,042,637.54
Non-current liabilities:
Long-term borrowings 431,200,000.00 462,000,000.00
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 2,481,170.16 1,947,178.87
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 473,681,170.16 503,947,178.87
Total liabilities 8,113,836,884.79 8,969,989,816.41
Owners’ equity:
Share capital 595,979,092.00 595,979,092.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 53,876,380.11 53,876,380.11
Less: Treasury stock
Other comprehensive income -3,018,820.21 -2,742,841.65
50
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Specific reserve
Surplus reserves 48,886,605.81 48,886,605.81
Retained earnings 1,073,555,785.60 1,105,473,319.87
Total owners’ equity 1,769,279,043.31 1,801,472,556.14
Total liabilities and owners’ equity 9,883,115,928.10 10,771,462,372.55
3. Consolidated Income Statement
Unit: RMB
Item H1 2023 H1 2022
1. Revenue 1,905,464,632.85 1,988,299,840.24
Including: Operating revenue 1,905,464,632.85 1,988,299,840.24
Interest income
Insurance premium income
Handling charge and
commission income
2. Costs and expenses 1,605,529,607.89 1,648,725,222.85
Including: Cost of sales 1,372,159,884.25 1,068,652,583.32
Interest expense
Handling charge and
commission expense
Surrenders
Net insurance claims paid
Net amount provided as
insurance contract reserve
Expenditure on policy
dividends
Reinsurance premium
expense
Taxes and surcharges 45,190,786.03 394,230,719.81
Selling expense 13,087,297.05 11,358,858.51
Administrative expense 149,188,184.18 143,701,058.05
R&D expense 1,711,051.44 2,689,725.40
Finance costs 24,192,404.94 28,092,277.76
Including: Interest
31,827,441.32 36,281,087.17
expense
Interest income 7,930,755.87 9,179,453.97
Add: Other income 5,670,088.91 6,806,445.99
Return on investment (“-” for loss) 1,857,388.32 946,914.05
Including: Share of profit or loss
1,857,388.32 859,534.38
of joint ventures and associates
Income from the derecognition
of financial assets at amortized cost (“-”
for loss)
Exchange gain (“-” for loss)
Net gain on exposure hedges (“-”
for loss)
Gain on changes in fair value (“-”
for loss)
Credit impairment loss (“-” for
-13,610,779.58 -14,462,076.54
loss)
51
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Asset impairment loss (“-” for
2,045.93 3,302.47
loss)
Asset disposal income (“-” for
174,379.69 -41,452.49
loss)
3. Operating profit (“-” for loss) 294,028,148.23 332,827,750.87
Add: Non-operating income -204,898.03 2,546,068.46
Less: Non-operating expense 357,718.39 1,417,586.84
4. Profit before tax (“-” for loss) 293,465,531.81 333,956,232.49
Less: Income tax expense 78,819,275.76 92,655,204.26
5. Net profit (“-” for net loss) 214,646,256.05 241,301,028.23
5.1 By operating continuity
5.1.1 Net profit from continuing
214,584,900.22 241,301,028.23
operations (“-” for net loss)
5.1.2 Net profit from discontinued
61,355.83 0.00
operations (“-” for net loss)
5.2 By ownership
5.2.1 Net profit attributable to
shareholders of the Company as the 220,903,444.63 250,802,157.71
parent (“-” for net loss)
5.2.2 Net profit attributable to non-
-6,257,188.58 -9,501,129.48
controlling interests (“-” for net loss)
6. Other comprehensive income, net of
1,404,020.27 2,063,279.42
tax
Attributable to owners of the
1,404,020.27 2,063,279.42
Company as the parent
6.1 Items that will not be
-275,978.56 -118,365.58
reclassified to profit or loss
6.1.1 Changes caused by
remeasurements on defined benefit 0.00 0.00
schemes
6.1.2 Other comprehensive
income that will not be reclassified to 0.00 0.00
profit or loss under the equity method
6.1.3 Changes in the fair value of
-275,978.56 -118,365.58
investments in other equity instruments
6.1.4 Changes in the fair value
0.00 0.00
arising from changes in own credit risk
6.1.5 Other 0.00 0.00
6.2 Items that will be reclassified to
1,679,998.83 2,181,645.00
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- 1,679,998.83 2,181,645.00
denominated financial statements
6.2.7 Other
Attributable to non-controlling
0.00 0.00
interests
7. Total comprehensive income 216,050,276.32 243,364,307.65
52
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Attributable to owners of the
222,307,464.90 252,865,437.13
Company as the parent
Attributable to non-controlling
-6,257,188.58 -9,501,129.48
interests
8. Earnings per share
8.1 Basic earnings per share 0.3707 0.4208
8.2 Diluted earnings per share 0.3707 0.4208
Where business combinations under common control occurred in the Current Period, the net profit achieved by the acquirees
before the combinations was RMB0, with the amount for the same period of last year being RMB0.
Legal representative: Liu Shengxiang Head of financial affairs: Cai Lili
Head of the financial department: Liu Qiang.
4. Income Statement of the Company as the Parent
Unit: RMB
Item H1 2023 H1 2022
1. Operating revenue 1,003,621,923.84 31,589,670.59
Less: Cost of sales 698,031,149.77 17,210,314.74
Taxes and surcharges 8,373,564.71 3,188,103.66
Selling expense 406,096.84 189,424.71
Administrative expense 47,358,840.75 45,512,068.89
R&D expense 0.00 0.00
Finance costs 6,675,706.20 4,842,416.19
Including: Interest expense 13,125,188.51 13,164,271.45
Interest income 3,531,500.73 5,221,428.26
Add: Other income 252,975.99 182,349.33
Return on investment (“-” for loss) 1,857,388.32 77,583,669.56
Including: Share of profit or loss
1,857,388.32 859,534.38
of joint ventures and associates
Income from the derecognition
of financial assets at amortized cost (“-”
for loss)
Net gain on exposure hedges (“-”
for loss)
Gain on changes in fair value (“-”
for loss)
Credit impairment loss (“-” for
482,276.30 47,995.81
loss)
Asset impairment loss (“-” for
loss)
Asset disposal income (“-” for
111,000.73 0.00
loss)
2. Operating profit (“-” for loss) 245,480,206.91 38,461,357.10
Add: Non-operating income 413,371.19 0.00
Less: Non-operating expense 15,573.60 23,576.47
3. Profit before tax (“-” for loss) 245,878,004.50 38,437,780.63
Less: Income tax expense 62,647,086.56 8,672,460.66
53
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
4. Net profit (“-” for net loss) 183,230,917.94 29,765,319.97
4.1 Net profit from continuing
183,230,917.94 29,765,319.97
operations (“-” for net loss)
4.2 Net profit from discontinued
operations (“-” for net loss)
5. Other comprehensive income, net of
-275,978.56 -118,365.58
tax
5.1 Items that will not be reclassified
-275,978.56 -118,365.58
to 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
-275,978.56 -118,365.58
investments in other equity instruments
5.1.4 Changes in the fair value
arising from changes in own credit risk
5.1.5 Other
5.2 Items that will be reclassified to
profit or loss
5.2.1 Other comprehensive income
that will be reclassified to profit or loss
under the equity method
5.2.2 Changes in the fair value of
investments in other debt obligations
5.2.3 Other comprehensive income
arising from the reclassification of
financial assets
5.2.4 Credit impairment allowance
for investments in other debt obligations
5.2.5 Reserve for cash flow hedges
5.2.6 Differences arising from the
translation of foreign currency-
denominated financial statements
5.2.7 Other
6. Total comprehensive income 182,954,939.38 29,646,954.39
7. Earnings per share
7.1 Basic earnings per share 0.3074 0.0499
7.2 Diluted earnings per share 0.3074 0.0499
5. Consolidated Cash Flow Statement
Unit: RMB
Item H1 2023 H1 2022
1. Cash flows from operating activities:
Proceeds from sale of commodities
1,134,538,536.26 1,508,257,820.26
and 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
54
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
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 15,030,885.06 9,187,939.90
Cash generated from other operating
126,769,873.68 461,787,150.96
activities
Subtotal of cash generated from
1,276,339,295.00 1,979,232,911.12
operating activities
Payments for commodities and services 1,075,770,309.73 1,486,656,535.01
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 495,986,685.15 503,751,276.86
Taxes paid 157,276,244.25 278,354,981.59
Cash used in other operating activities 127,327,714.02 106,464,348.75
Subtotal of cash used in operating
1,856,360,953.15 2,375,227,142.21
activities
Net cash generated from/used in
-580,021,658.15 -395,994,231.09
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment
Return on investment 63,120.00 0.00
Net proceeds from the disposal of fixed
assets, intangible assets and other long- 73,664.52 33,054.00
lived assets
Net proceeds from the disposal of
subsidiaries and other business units
Cash generated from other investing
activities
Subtotal of cash generated from
136,784.52 33,054.00
investing activities
Payments for the acquisition of fixed
assets, intangible assets and other long- 2,589,103.59 8,208,285.38
lived assets
Payments for investments 1,644,822.69 240,634,030.00
Net increase in pledged loans granted
Net payments for the acquisition of
subsidiaries and other business units
Cash used in other investing activities
Subtotal of cash used in investing 4,233,926.28 248,842,315.38
55
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
activities
Net cash generated from/used in
-4,097,141.76 -248,809,261.38
investing activities
3. Cash flows from financing activities:
Capital contributions received 0.00 1,260,000.00
Including: Capital contributions by
0.00 1,260,000.00
non-controlling interests to subsidiaries
Borrowings raised 590,984,586.17 286,832,330.00
Cash generated from other financing
activities
Subtotal of cash generated from
590,984,586.17 288,092,330.00
financing activities
Repayment of borrowings 32,316,662.00 30,900,000.00
Interest and dividends paid 94,407,905.77 93,476,441.56
Including: Dividends paid by
245,000.00
subsidiaries to non-controlling interests
Cash used in other financing activities 15,224,062.82 12,142,998.09
Subtotal of cash used in financing
141,948,630.59 136,519,439.65
activities
Net cash generated from/used in
449,035,955.58 151,572,890.35
financing activities
4. Effect of foreign exchange rates
2,054,469.55 2,438,091.50
changes on cash and cash equivalents
5. Net increase in cash and cash
-133,028,374.78 -490,792,510.62
equivalents
Add: Cash and cash equivalents,
1,509,693,857.48 1,963,988,756.69
beginning of the period
6. Cash and cash equivalents, end of the
1,376,665,482.70 1,473,196,246.07
period
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item H1 2023 H1 2022
1. Cash flows from operating activities:
Proceeds from sale of commodities
65,620,304.10 25,384,592.62
and rendering of services
Tax rebates 0.00 0.00
Cash generated from other operating
720,171,786.00 1,332,729,141.98
activities
Subtotal of cash generated from
785,792,090.10 1,358,113,734.60
operating activities
Payments for commodities and services 30,896,291.92 31,342,993.24
Cash paid to and for employees 31,086,528.03 35,011,651.40
Taxes paid 39,797,238.94 25,455,041.33
Cash used in other operating activities 294,025,250.18 1,183,602,910.44
Subtotal of cash used in operating
395,805,309.07 1,275,412,596.41
activities
Net cash generated from/used in
389,986,781.03 82,701,138.19
operating activities
2. Cash flows from investing activities:
56
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Proceeds from disinvestment 0.00 0.00
Return on investment 63,120.00 0.00
Net proceeds from the disposal of fixed
assets, intangible assets and other long- 0.00 209.00
lived assets
Net proceeds from the disposal of
0.00 0.00
subsidiaries and other business units
Cash generated from other investing
0.00 0.00
activities
Subtotal of cash generated from
63,120.00 209.00
investing activities
Payments for the acquisition of fixed
assets, intangible assets and other long- 152,169.34 390,961.75
lived assets
Payments for investments 148,000,000.00 389,000,000.00
Net payments for the acquisition of
0.00 0.00
subsidiaries and other business units
Cash used in other investing activities 0.00 0.00
Subtotal of cash used in investing
148,152,169.34 389,390,961.75
activities
Net cash generated from/used in
-148,089,049.34 -389,390,752.75
investing activities
3. Cash flows from financing activities:
Capital contributions received
Borrowings raised 0.00 125,000,000.00
Cash generated from other financing
activities
Subtotal of cash generated from
0.00 125,000,000.00
financing activities
Repayment of borrowings 30,800,000.00 30,800,000.00
Interest and dividends paid 13,132,759.86 13,015,483.64
Cash used in other financing activities 0.00 1,227,250.00
Subtotal of cash used in financing
43,932,759.86 45,042,733.64
activities
Net cash generated from/used in
-43,932,759.86 79,957,266.36
financing activities
4. Effect of foreign exchange rates
38,215.73 20,809.20
changes on cash and cash equivalents
5. Net increase in cash and cash
198,003,187.56 -226,711,539.00
equivalents
Add: Cash and cash equivalents,
528,268,054.39 808,411,401.68
beginning of the period
6. Cash and cash equivalents, end of the
726,271,241.95 581,699,862.68
period
7. Consolidated Statements of Changes in Owners’ Equity
H1 2023
Unit: RMB
H1 2023
Equity attributable to owners of the Company as the parent Non Tota
Item Shar Other equity Capi Less Oth Spe Surp Gen Reta - l
instruments Oth Subt cont own
e tal : er cific lus eral ined
er otal rolli ers’
capi Pref Perp Oth rese Trea com rese rese rese earn
57
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
tal erre etua er rves sury preh rve rves rve ings ng equi
d l stoc ensi inter ty
shar bon k ve ests
es ds inco
me
1. Balance as
at the end of 595, 80,4 - 48,8 3,69 4,41 56,2 4,46
the 979, 88,0 3,85 86,6 1,05 2,55 55,5 8,81
Reporting 092. 45.3 4,37 05.8 6,18 5,54 22.4 1,07
Period of the 00 8 7.95 1 2.73 7.97 6 0.43
prior year
Add:
Adjustment
for change in
accounting
policy
Adjustment
for
correction of
previous
error
Adjustment
for business
combination
under
common
control
Other
adjustments
2. Balance as
at the 595, 80,4 - 48,8 3,69 4,41 56,2 4,46
beginning of
979, 88,0 3,85 86,6 1,05 2,55 55,5 8,81
the
Reporting 092. 45.3 4,37 05.8 6,18 5,54 22.4 1,07
Period of the 00 8 7.95 1 2.73 7.97 6 0.43
year
3. Increase/ - -
decrease in 1,40 4,11 5,51
6,50 987,
the period (“- 0.00 0.00 4,02 0.00 0.00 0.00 0,16 4,19
” for 2,18 998.
0.27 9.73 0.00
decrease) 8.58 58
220, 222, - 216,
3.1 Total 1,40
903, 307, 6,25 050,
comprehensi 4,02
ve income 444. 464. 7,18 276.
0.27
63 90 8.58 32
3.2 Capital - - -
increased 1,64 1,64 1,64
0.00 0.00 0.00 0.00 0.00 0.00
and reduced 4,82 4,82 4,82
by owners 2.69 2.69 2.69
3.2.1
Ordinary
shares 0.00 0.00
increased by
owners
3.2.2
Capital
increased by
0.00 0.00
holders of
other equity
instruments
3.2.3
Share-based
payments 0.00 0.00
included in
owners’
58
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
equity
- - -
3.2.4 1,64 1,64 1,64
Other 4,82 4,82 4,82
2.69 2.69 2.69
- - -
-
215, 215, 215,
3.3 Profit 245,
148, 148, 393,
distribution 000.
452. 452. 452.
00
21 21 21
3.3.1
Appropriatio
0.00 0.00
n to surplus
reserves
3.3.2
Appropriatio
0.00 0.00
n to general
reserve
3.3.3 - - -
-
Appropriatio 215, 215, 215,
245,
n to owners 148, 148, 393,
(or 000.
452. 452. 452.
shareholders) 00
21 21 21
3.3.4
0.00 0.00
Other
3.4
Transfers
within 0.00 0.00
owners’
equity
3.4.1
Increase in
capital (or
0.00 0.00
share capital)
from capital
reserves
3.4.2
Increase in
capital (or
0.00 0.00
share capital)
from surplus
reserves
3.4.3 Loss
offset by
0.00 0.00
surplus
reserves
3.4.4
Changes in
defined
benefit
0.00 0.00
schemes
transferred to
retained
earnings
3.4.5
Other
comprehensi
ve income 0.00 0.00
transferred to
retained
earnings
3.4.6
0.00 0.00
Other
3.5 0.00 0.00
59
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Specific
reserve
3.5.1
Increase in 0.00 0.00
the period
3.5.2 Used
0.00 0.00
in the period
3.6 Other 0.00 0.00
595, 80,4 - 48,8 3,69 4,41 49,7 4,46
4. Balance as
979, 88,0 2,45 86,6 5,16 8,06 53,3 7,82
at the end of 0.00 0.00 0.00 0.00 0.00 0.00
the period 092. 45.3 0,35 05.8 6,35 9,73 33.8 3,07
00 8 7.68 1 2.46 7.97 8 1.85
H1 2022
Unit: RMB
H1 2022
Equity attributable to owners of the Company as the parent
Other equity Oth Non
Tota
instruments Less er -
l
Item Shar Capi : com Spe Surp Gen Reta cont
Pref Perp own
e tal Trea preh cific lus eral ined Oth Subt rolli
erre etua ers’
capi Oth rese sury ensi rese rese rese earn er otal ng
d l equi
tal er rves stoc ve rve rves rve ings inter
shar bon ty
k inco ests
es ds
me
1. Balance as
at the end of 595, 146, - 47,5 3,80 4,58 46,8 4,63
the 979, 986, 8,17 74,9 0,90 3,26 19,6 0,08
0.00 0.00 0.00 0.00 0.00 0.00
Reporting 092. 167. 4,65 40.1 1,41 6,95 13.1 6,57
Period of the 00 70 3.66 8 3.35 9.57 9 2.76
prior year
Add:
Adjustment
for change in
accounting
policy
Adjustment
for
correction of
previous
error
Adjustment
for business
combination
under
common
control
Other
adjustments
2. Balance as
at the 595, 146, - 47,5 3,80 4,58 46,8 4,63
beginning of
979, 986, 8,17 74,9 0,90 3,26 19,6 0,08
the 0.00 0.00 0.00 0.00 0.00 0.00
Reporting 092. 167. 4,65 40.1 1,41 6,95 13.1 6,57
Period of the 00 70 3.66 8 3.35 9.57 9 2.76
year
3. Increase/ - - - - -
-
decrease in 66,4 2,06 17,9 362, 445, 453,
8,24
the period (“- 98,1 0.00 3,27 0.00 37,3 0.00 926, 298, 540,
” for 1,12
22.3 9.42 91.7 701. 936. 065.
decrease) 9.48
2 1 89 50 98
3.1 Total
2,06 250, 252, - 243,
comprehensi
ve income 3,27 802, 865, 9,50 364,
60
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
9.42 157. 437. 1,12 307.
71 13 9.48 65
- - - - -
3.2 Capital 66,4 17,9 208, 292, 1,26 291,
increased
98,1 0.00 0.00 0.00 37,3 0.00 463, 898, 0,00 638,
and reduced
by owners 22.3 91.7 077. 591. 0.00 591.
2 1 04 07 07
3.2.1
Ordinary 1,26 1,26
shares 0.00 0,00 0,00
increased by 0.00 0.00
owners
3.2.2
Capital
increased by
0.00 0.00
holders of
other equity
instruments
3.2.3
Share-based
payments
0.00 0.00
included in
owners’
equity
- - - - -
66,4 17,9 208, 292, 292,
3.2.4
98,1 37,3 463, 898, 898,
Other
22.3 91.7 077. 591. 591.
2 1 04 07 07
- - -
405, 405, 405,
3.3 Profit
265, 265, 265,
distribution
782. 782. 782.
56 56 56
3.3.1
Appropriatio
0.00 0.00
n to surplus
reserves
3.3.2
Appropriatio
0.00 0.00
n to general
reserve
3.3.3 - - -
Appropriatio 405, 405, 405,
n to owners 265, 265, 265,
(or 782. 782. 782.
shareholders) 56 56 56
3.3.4
0.00 0.00
Other
3.4
Transfers
within 0.00 0.00
owners’
equity
3.4.1
Increase in
capital (or
0.00 0.00
share capital)
from capital
reserves
3.4.2
Increase in 0.00 0.00
capital (or
61
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
share capital)
from surplus
reserves
3.4.3 Loss
offset by
0.00 0.00
surplus
reserves
3.4.4
Changes in
defined
benefit
0.00 0.00
schemes
transferred to
retained
earnings
3.4.5
Other
comprehensi
ve income 0.00 0.00
transferred to
retained
earnings
3.4.6
0.00 0.00
Other
3.5
Specific 0.00 0.00
reserve
3.5.1
Increase in 0.00 0.00
the period
3.5.2 Used
0.00 0.00
in the period
3.6 Other 0.00 0.00
595, 80,4 - 29,6 3,43 4,13 38,5 4,17
4. Balance as
979, 88,0 6,11 37,5 7,97 7,96 78,4 6,54
at the end of 0.00 0.00 0.00 0.00 0.00 0.00
the period 092. 45.3 1,37 48.4 4,71 8,02 83.7 6,50
00 8 4.24 7 1.46 3.07 1 6.78
8. Statements of Changes in Owners’ Equity of the Company as the Parent
H1 2023
Unit: RMB
H1 2023
Other equity instruments Other
Capita Less: compr Specif Surplu Retain Total
Item Share Prefer Perpet l Treasu ehensi ic s ed owner
Other
capital red ual Other reserv ry ve reserv reserv earnin s’
shares bonds es stock incom e es gs equity
e
1. Balance as
at the end of -
595,9 53,87 48,88 1,105, 1,801,
the 2,742,
79,09 6,380. 6,605. 473,3 472,5
Reporting 841.6
Period of the 2.00 11 81 19.87 56.14
5
prior year
Add:
Adjustment
for change in
accounting
policy
Adjustment
for
correction of
62
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
previous
error
Other
adjustments
2. Balance as
at the -
beginning of 595,9 53,87 48,88 1,105, 1,801,
2,742,
the 79,09 6,380. 6,605. 473,3 472,5
Reporting 841.6
2.00 11 81 19.87 56.14
Period of the 5
year
3. Increase/ - -
decrease in -
31,91 32,19
the period (“- 275,9
” for 7,534. 3,512.
78.56
decrease) 27 83
3.1 Total - 183,2 182,9
comprehensi 275,9 30,91 54,93
ve income 78.56 7.94 9.38
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
- -
3.3 Profit 215,1 215,1
distribution 48,45 48,45
2.21 2.21
3.3.1
Appropriatio
n to surplus
reserves
3.3.2 - -
Appropriatio
215,1 215,1
n to owners
(or 48,45 48,45
shareholders) 2.21 2.21
3.3.3
Other
3.4
Transfers
within
owners’
equity
3.4.1
Increase in
capital (or
63
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
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
-
4. Balance as 595,9 53,87 48,88 1,073, 1,769,
3,018,
at the end of 79,09 6,380. 6,605. 555,7 279,0
the period 820.2
2.00 11 81 85.60 43.31
1
H1 2022
Unit: RMB
H1 2022
Other equity instruments Other
Capita Less: compr Specif Surplu Retain Total
Item Share Prefer Perpet l Treasu ehensi ic s ed owner
Other
capital red ual Other reserv ry ve reserv reserv earnin s’
shares bonds es stock incom e es gs equity
e
1. Balance as
at the end of -
595,9 53,87 29,63 1,337, 2,014,
the 2,574,
79,09 6,380. 7,548. 497,5 416,4
Reporting 121.5
Period of the 2.00 11 47 86.41 85.45
4
prior year
Add:
Adjustment
for change in
accounting
policy
64
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Adjustment
for
correction of
previous
error
Other
adjustments
2. Balance as
at the -
beginning of 595,9 53,87 29,63 1,337, 2,014,
2,574,
the 79,09 6,380. 7,548. 497,5 416,4
Reporting 121.5
2.00 11 47 86.41 85.45
Period of the 4
year
3. Increase/ - -
decrease in -
375,5 375,6
the period (“- 118,3
” for 00,46 18,82
65.58
decrease) 2.59 8.17
3.1 Total - 29,76 29,64
comprehensi 118,3 5,319. 6,954.
ve income 65.58 97 39
3.2 Capital
increased
and reduced
by owners
3.2.1
Ordinary
shares
increased by
owners
3.2.2
Capital
increased by
holders of
other equity
instruments
3.2.3
Share-based
payments
included in
owners’
equity
3.2.4
Other
- -
3.3 Profit 405,2 405,2
distribution 65,78 65,78
2.56 2.56
3.3.1
Appropriatio
n to surplus
reserves
3.3.2 - -
Appropriatio
405,2 405,2
n to owners
(or 65,78 65,78
shareholders) 2.56 2.56
3.3.3
Other
3.4
Transfers
within
owners’
equity
65
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
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
-
4. Balance as 595,9 53,87 29,63 961,9 1,638,
2,692,
at the end of 79,09 6,380. 7,548. 97,12 797,6
the period 487.1
2.00 11 47 3.82 57.28
2
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
66
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
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 19th Meeting of the 10th Board of Directors of the Company
on 25 August 2023.
The consolidation scope of the Company’s consolidated financial statements was determined based on the control. There were 62
subsidiaries including Shenzhen Huangcheng Real Estate Co., Ltd., Dongguan Guomao Changsheng Real Estate Development Co.,
Ltd., Shenzhen International Trade Center Property Management Co., Ltd. included in the consolidation financial statements in this
report. Please refer to the Note VIII and Note IX of the financial report for details.
IV Basis for Preparation of Financial Statements
1. Preparation Basis
Based on the continuing operation, the financial statements of the Company are prepared in accordance with the actual
transactions, governing provisions of the Accounting Standards for Business Enterprises and the following major accounting
policies and estimates.
2. Continuation
There was no such case where the sustainable operation ability within 12 months since the end of the Reporting Period was highly
doubted.
V. Important Accounting Policies and Estimations
Indication of specific accounting policies and estimations:
1. Statement for Complying with the Accounting Standard for Business Enterprise
The financial statement prepared by the Company complies with the requirements of the latest accounting standards for business
enterprises as well as the application guidelines, interpretations and other relevant regulations (hereinafter referred to as the
“accounting standards for business enterprises”) issued by the Ministry of Finance. It reflects the Company’s financial conditions,
operating results, cash flow and other related information in a truthful and complete manner.
In addition, in the preparation of the financial report, reference was made to the presentation and disclosure requirements of the Rule
for Information Disclosure by Companies Offering Securities to the Public No. 15 - General Provisions on Financial Reports (2014
Revision) and the Notice on Related Matters of the Implementation of New Accounting Standards for Business Enterprises by Listed
Companies (KJBH [2018] No. 453).
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
67
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
development project and classified by the assets and liabilities liquidity.
4. Standard Currency of Accounts
The Company adopts Renminbi as a standard currency of accounts.
5. Accounting Process of Business Combinations under the Same Control and not under the Same Control
1. Accounting Process of Business Combinations under the Same Control
For business combination under the same control achieved through one transaction or step by step through multiple transactions by
the Company, the assets and liabilities acquired in a business combination are measured at the carrying value of the acquiree in the
consolidated financial statements of the ultimate controlling party at the date of combination. The difference between the carrying
value of net assets acquired by the Company and the carrying value of the combination consideration paid (or the total nominal value
of shares issued) is referred to for adjusting capital reserve; if capital reserve is not sufficient to offset the difference, then retained
earnings are adjusted.
2. Accounting Process of Business Combinations not under the Same Control
The Group shall recognize the positive balance between the combination costs and the fair value of the identifiable net assets
obtained from the acquiree on purchase date as goodwill. If the combination costs are less than the fair value of the identifiable net
assets obtained from the acquire, the Company shall recheck the various identifiable assets and liabilities obtained from the acquire,
fair value with liabilities, and measurement of combination costs. If the combination costs are less than the fair value of the
identifiable net assets obtained from the acquire after recheck, the Company shall the record the balance into the profit and loss of the
current period.
Business combinations not under the same control achieved step by step through multiple transactions should be treated in the
following order:
(1) Adjusting the initial investment cost of long-term equity investment If the equity held prior to the date of purchase is accounted
under the equity method, the equity is remeasured at the fair value on the purchase date, and the difference between the fair value and
its carrying value is included in the investment income of the current period; if the equity in the acquiree held prior to the purchase
date involves other comprehensive income or changes in other owners' equity under the equity method of accounting, it is converted
into income for the current period on the purchase date, except for other comprehensive income arising from the re-measurement of
the investee's net liabilities of the defined benefit pension plan or changes in net assets of the defined benefit plan and changes in the
fair value of investments in other equity instruments held.
(2) Determining the goodwill (or the amount included in the profit or loss for the current period) When comparing the initial
investment cost of long-term equity investments adjusted in the first step with the share of the fair value of the identifiable net assets
of the subsidiary on the purchase date, if the former is more than the latter, the difference between the former and the latter is
recognized as goodwill; if the former is less than the latter, the difference is included in profit or loss for the current period.
Step-by-step disposal of equity through multiple transactions that results in loss of control over the subsidiary
(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.
68
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
3) The occurrence of a transaction depends on the occurrence of, at a minimum, one another transaction.
4) A transaction is considered uneconomical separately but is considered economical when other transactions are also taken into
consideration.
(2) Accounting treatment when transactions in the process of step-by-step disposal of equity that results in the loss of control over a
subsidiary constitute a "package deal"
If the transactions in the disposal of equity of a subsidiary that results in the loss of control constitute a package deal, each transaction
should be accounted for as a transaction that disposes of and loses control over a subsidiary; however, the difference between the
disposal price and the share of the net assets of the subsidiary corresponding to the disposal of the investment for each disposal prior
to the loss of control should be recognized as other comprehensive earnings in the consolidated financial statements and transferred
to profit or loss for the current period when the Company lost the control.
In the consolidated financial statements, the remaining equity should be remeasured at fair value on the date of loss of control. The
sum of the consideration obtained from the disposition of equity and the fair value of the residual equity minus the Company's
portion of net assets in the former subsidiary calculated from the date of combination on an ongoing basis at the original shareholding
ratio is included in the return on investment for the current period when the Company lost the control. Other comprehensive income
related to the equity investments in the former subsidiary should be included in the return on investment or retained earnings for the
current period when the Company lost the control.
(3) Accounting treatment when transactions in the process of step-by-step disposal of equity that results in the loss of control over a
subsidiary do not constitute a "package deal"
If the Company disposes of investments made in its subsidiary without losing control over the subsidiary, in the consolidated
financial statements, the difference between the payment for equity disposed of and the Company's corresponding portion of net
assets in the subsidiary is included in the capital reserve. If the capital reserve is insufficient for offset, the retained earnings should
be adjusted.
If the disposal of investments made in its subsidiary results in a loss of control over the subsidiary, in the consolidated financial
statements, the remaining equity should be remeasured at the fair value on the date of loss of control. The sum of the consideration
obtained from the disposition of equity and the fair value of the residual equity minus the Company's portion of net assets in the
former subsidiary calculated from the date of combination on an ongoing basis at the original shareholding ratio is included in the
return on investment for the current period when the Company lost the control. Other comprehensive income related to the equity
investments in the former subsidiary should be included in the return on investment or retained earnings for the current period when
the Company lost the control.
6. Methods for Preparing Consolidated Financial Statements
Based on the financial statements of the Company as the parent and its subsidiaries and other related materials, the consolidated
financial statements were prepared by the Group as the parent according to Accounting Standards for Enterprises No. 33 –
Consolidated Financial Statements.
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
69
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
control over the arrangement. No one party can control the arrangement alone, and any party with joint control over the arrangement
can prevent the other party or combination of parties from controlling the arrangement alone.
Joint control refers to the common control over a particular arrangement according to relevant agreement, and that the decisions on
relevant activities under such arrangement are subject to unanimous consent from the parties sharing the joint control.
Joint arrangements are divided into joint operations and joint ventures. A joint operation is a joint arrangement whereby the party to
joint arrangement has rights to the assets, and obligations for the liabilities related to the arrangement. A joint venture is a joint
arrangement whereby the party to joint arrangement has rights to the net assets of the arrangement.
2. Accounting treatment of joint arrangements
A party to a joint operation shall recognize the following items related to its share of interest in the joint operation and conduct
accounting treatment for them in accordance with the relevant provisions of the Accounting Standard for Business Enterprises: (1)
Recognition of assets held separately and of assets held jointly in proportion to its share; (2) recognition of liabilities incurred
separately and of liabilities incurred jointly in proportion to its share; (3) recognition of revenue from the sale of its share of the
output of the joint operation; (4) recognition of revenue from the sale of output of the joint operation in proportion to its share; (5)
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.
70
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
10. Financial Instruments
1. Recognition and derecognition of financial instruments
When the Group becomes a party to a financial instrument contract, it recognizes relevant financial assets or financial liabilities.
All regular acquisition or sales of financial assets are recognized and derecognized on a trading day basis. Regular acquisition or
sales of financial assets means delivering financial assets within the time limit of laws, regulations and usual market practices and in
line with contract terms. The trading day refers to the date when the Group promises to acquire or sell financial assets.
Financial assets (or part of financial assets, or part of a set of similar financial assets) are derecognized, i.e., written off from its
account and balance sheet, if the following conditions are met:
(1) The right to receive cash flows from financial assets has expired;
(2) The right to receive cash flows from the financial assets is transferred, or the obligation to pay the full amount of cash flows
received to a third party in a timely manner is assumed under a "pass-through agreement"; and (a) substantially almost all the risks
and rewards of its ownership of the financial assets are transferred, or (b) control over the financial asset is relinquished, although
substantially all the risks and rewards of its ownership of the financial assets are neither transferred nor retained.
2. Classification and measurement of financial assets
At initial recognition, according to the business model of managing financial assets and the contractual cash flow characteristics of
financial assets, financial assets of the Group are classified into the following categories: Financial assets measured at the amortized
cost, financial assets measured at fair value through other comprehensive income of the current period, and financial assets measured
at fair value through profit and loss for the current period. The subsequent measurement of financial assets depended on their
categories.
The Group's classification of financial assets is based on the Group's business model for managing financial assets and the cash flow
characteristics of the financial assets.
(1) Financial assets measured at amortized cost
Financial assets that meet both of the following conditions shall be classified as financial assets measured at amortized 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
71
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
For financial assets measured at fair value through other comprehensive income that are irrevocably chosen and designated by the
Group from some non-trading equity instruments, the relevant dividend income shall be included in profit and loss for the current
period and changes in the fair value shall be recognized as other comprehensive income, until the financial assets are derecognized
when accumulative gains or losses shall be transferred to retained earnings.
(4) Financial assets measured at fair value through profit and loss for the current period
The aforementioned financial assets measured at amortized cost and financial assets other than those measured at fair value through
other comprehensive income are classified as financial assets measured at fair value through profit and loss for the current period. At
initial recognition, in order to eliminate or significantly reduce accounting mismatch, financial assets can be designated as financial
assets measured at fair value through profit or loss for the current period. Such financial assets shall be measured at fair value, and all
changes in fair value are included in the profit and loss for the current period.
When and only when the Group changes its business model of managing financial assets, all relevant financial assets affected will be
re-classified.
For financial assets measured at fair value through profit and loss for the current period, transaction costs are directly included in
profit and loss for the current period. For other types of financial assets, related transaction costs are included in their initial
recognized amounts.
3. Classification and measurement of financial liabilities
At initial recognition, the financial liabilities of the Group are classified into the following categories: Financial liabilities measured
at the amortized cost, and financial liabilities measured at fair value through profit and loss for the current period.
Financial liabilities can be designated as financial liabilities measured at fair value through profit or loss for the current period at
initial measurement if one of the following conditions is met: (1) The designation can eliminate or significantly reduce accounting
mismatch; (2) the management and performance evaluation of a portfolio of financial liabilities or a portfolio of financial assets and
financial liabilities are based on fair value in accordance with the Group's risk management or investment strategy as set out in a
formal written document, and are reported to key management personnel on this basis within the Group; (3) The financial liabilities
contain embedded derivatives require splitting.
The Group determines the classification of financial liabilities at initial recognition. For financial liabilities measured at fair value
through profit and loss for the current period, transaction costs are directly included in profit and loss for the current period. For other
types of financial liabilities, related transaction costs are included in their initial recognized amounts.
The subsequent measurement of financial liabilities depended on their categories:
(1) Financial liabilities measured at amortized cost
Such financial liabilities shall be subsequently measured at amortized cost using the effective interest method.
(2) Financial liabilities measured at fair value through profit and loss for the current period
Financial liabilities measured at fair value through profit or loss for the current period include trading financial liabilities (including
derivatives that are financial liabilities) and financial liabilities designated as at fair value through profit or loss at initial recognition.
4. Financial instrument offset
The net amount after financial assets and financial liabilities offset each other is reported in the balance sheet if both of the following
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
72
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
(1) Impairment measurement and accounting handling of financial instrument
Based on expected credit loss, the Company conducts impairment handling and confirms loss reserve for financial assets which is
measured by amortized cost, debt instrument investment which is measured by fair value and whose change is calculated into other
comprehensive profits, accounts receivable of rental, loan commitment which is beyond financial debt classified as the one which is
measured by fair value and whose change is calculated into current profits and losses, financial debt which does not belong to the one
which is measured by fair value and whose change is calculated into current profits or losses, or financial guarantee contract of
financial debt which is formed when it does not belong to financial asset transfer and doesn’t conform to confirmation condition of
termination or keeps on being involved in transferred financial asset.
Expected credit loss refers to weighted average of credit loss of financial instrument which takes the risk of contract breach
occurrence as the weight. Credit loss refers to the difference between all contract cash flow which is converted into cash according to
actual interest rate and receivable according to contract and all cash flow which to be charged as expected, i.e. current value of all
cash shortage. Among it, as for financial asset purchased or original which has had credit impairment, it should be converted into
cash according actual interest rate of this financial asset after credit adjustment.
As for financial asset purchased or original which has had credit impairment, the Company only confirms cumulative change of
expected credit loss within the whole duration after initial confirmation on the balance sheet date as loss reserve.
As for accounts receivable which don’t include major financing contents or the Company does not consider financing contents in
contract which is less than one year, the Company applies simplified measurement method, and measures loss reserve according to
amount of expected credit loss within the whole duration.
As for account receivable of rental and accounts receivable including major financing contents, the Company applies simplified
measurement method, and measure loss reserve according to amount of expected credit loss within the whole duration.
As for financial asset beyond above mentioned measurement methods, the Company evaluates whether its credit risk has increased
obviously since the initial confirmation on each balance sheet date. In case credit risk has increased obviously, the Company
measures the loss reserve according to amount of expected credit loss within the whole duration; in case the credit risk does not
increase obviously, the Company measures loss reserve according to the amount of expected credit loss in next 12 months.
By utilizing obtainable rational and well grounded information, including forward-looking information, comparing the risk of
contract breach on balance sheet date and risk of contract breach on initial confirmation date, the Company confirms whether the
credit risk of financial instrument has increased obviously from initial confirmation.
On balance sheet date, in case the Company judges that the financial instrument just has relatively low credit risk, then it will be
assumed that credit risk of the financial instrument has not increased obviously.
Based on single financial instrument or financial portfolio, the Company evaluates expected credit risk and measures expected credit
loss. When based on financial instrument portfolio, the Company takes common risk characteristics as the basis, and divides financial
instruments into different portfolios.
The Company measures expected credit loss again on each balance sheet date, the increase of loss reserve or amount which is
transfer back generated by it is calculated into current profits and losses as impairment profits or losses. As for financial asset which
is measured by amortized cost, loss reserve offsets the carrying value of the financial asset listed in the balance sheet; as for debt
investment which is measured by fair value and whose change is calculated into other comprehensive profits, the Company confirms
its loss 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,
73
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
group combining actual situation and prediction for future
economic situation, the group’s expected credit loss
rate shall be accounted through exposure at default
and the expected credit loss rate within the next 12
months or the entire life
(3) Accounts receivable with expected credit losses measured by groups
① Specific groups and method of measuring expected credit loss
Item Recognition basis Method of measuring expected credit losses
Bank’s acceptance bills receivable Bill type Consulting historical experience in credit losses,
combining actual situation and prediction for future
Trade acceptance bills receivable economic situation, the group’s expected credit loss
rate shall be accounted through exposure at default
and the expected credit loss rate within the entire life
Accounts receivable-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.
74
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
13. Accounts Receivable Financing
Not applicable.
14. Other Receivables
Recognition and accounting treatment methods regarding expected credit losses of other receivables
Refer to Note V 10 Financial Instruments of the financial statements for details.
15. Inventory
(1) Inventories Classification
Inventories include development land held for sale or consumption in the process of development and operation, development
products, temporarily leased development products which intended for sale, relocation housing, stock materials, inventory equipment,
and low-value consumables, etc., as well as development costs in the process of development.
(2) Cost Flow Assumption
1) Send-out materials shall adopt the moving weighted average method.
2) During the development of the project, the development land shall be included in the development cost of the project by the floor
area apportion of the developed products.
3) Send-out developed products shall be accounted by specific identification method.
4) The temporarily leased development products which intended for sale and relocation housing shall be amortized averagely by
stages according to the expected useful life of the same kind of fixed assets of the Company.
5) If the public supporting facilities are completed earlier than the relevant development products, after the final account of the public
supporting facilities， it shall be account into the development cost of the relevant development projects according to the building
area; If the public supporting facilities are completed later than the relevant development products, the relevant development products
shall withhold the public supporting facilities fees, and adjust the relevant development product costs according to the difference
between the actual occurrence and the withhold amount after the completed public supporting facilities' final accounts.
(3) Recognition basis of Net Realizable Value of Inventory
On the balance sheet date, inventory shall be measured at the lower of cost or net realizable value, and provision shall be made for
falling price of inventories on the ground of the difference between the cost of each item of inventories and the net realizable value.
Inventories directly for sale, under normal producing process, to the amount after deducting the estimated sale expense and relevant
taxes from the estimated sell price of the inventory, the net realizable value has been recognized; inventories which need to be
processed, under normal producing process, to the amount after deducting the estimated cost of completion, estimated sale expense
and relevant taxes from the estimated sale price of produced finished goods, the net realizable value has been recognized; on the
balance sheet date, in the same item of inventories, if some have contractual price agreement while others do not, the net realizable
value shall be recognized respectively and compared with their cost, and the amount of provision withdrawal or reversal for falling
price of inventories shall be recognized respectively.
(4) Inventory System for Inventories
Inventory system: Perpetual inventory system
(5) Amortization Method of the Low-value Consumption Goods and Packing Articles
1) Low-value Consumption Goods
One-off amortization method
2) Packing Articles
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
75
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
commodities transferred or services provided to customers (except for accounts receivable) are presented as contract assets.
For contract assets that do not contain significant financing components, the Company uses the simplified model of expected credit
loss, measuring the loss provision according to an amount that is equivalent to the amount of expected credit loss of the entire
duration. The increased loss provision or reversed amount thereof shall be recorded into the current profit or loss as impairment
losses or gains.
For contract assets that contain significant financing components, the Company has made the accounting policy choice and selected
the simplified model of expected credit loss, measuring the loss provision according to an amount that is equivalent to the amount of
expected credit loss of the entire duration. The increased loss provision or reversed amount thereof shall be recorded into the current
profit or loss as impairment losses or gains.
17. Contract Costs
Contract costs comprise contract performance cost and contract acquisition cost.
The cost incurred by the Company from performing a contract is recognized into an asset as contract performance cost when it meets
the following conditions:
This cost directly relates to an existing contract or a contract expected to be acquired. It consists of direct labor, direct materials,
manufacture costs (or similar costs), costs specified to be borne by the customer and other costs incurred from this contract solely.
This cost has increased the Company’s sources that are used to fulfill its contract performance obligations in the future.
This cost is expected to be recovered.
An incremental cost that is incurred by the Company for acquiring a contract and expected to be recovered is recognized into an asset
as contract acquisition cost. However, for such asset with an amortization period of less than one year, the Company recognizes them
into current profit/loss at their occurrence.
Assets related to contract costs are amortized on the same basis for recognizing the revenue from commodities or services related to
such assets.
When the carrying value of an asset related to contract costs is higher than the difference between the following two items, the
Company will withdraw impairment provision for the exceeded part and recognize it as asset impairment loss:
Residual consideration expected to be gained from transferring commodities and services related to this asset;
Costs expected to be incurred from transferring such commodities or services.
When the aforementioned asset impairment provision is reversed later, the carrying value of the asset after the reversal should not
exceed its carrying value on the reversal date under the assumption of no withdrawal of impairment provision.
18. Assets Held for Sale
The Company divides its components (or non-current assets) meeting the following conditions into available for sale assets: (1)
Assets can be sold immediately under the current conditions according to the practice of selling such assets or disposal groups in
similar transactions; (2) The sale is likely to occur, and a resolution has been made on a sale plan and a firm purchase commitment is
obtained (a firm purchase commitment refers to a legally binding purchase agreement signed between an enterprise and other parties,
which contains important terms such as transaction price, time and severe penalty for breach of contract to minimize the possibility
of major adjustment or cancellation of the agreement. The sale is expected to be completed within a year. It has been approved by
relevant authorities or regulatory authorities according to relevant regulations.
The Company adjusts the estimated net residual value of available for sale assets to the net amount of its fair value minus the selling
expenses (which shall not exceed the original book value of the assets available for sale). The difference between the original book
value and the adjusted estimated net residual value shall be included in the current profit and loss as the loss of asset impairment, and
provisions for impairment of assets available for sale shall be made. For the amount of impairment loss of disposal group available
for sale recognized, the book value of goodwill of the disposal group shall be offset first, and then the book value of disposal group
shall be offset in proportion according to the share of the book value of non-current assets in the disposal group measured according
to relevant Standard.
76
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
When the net amount of fair value of non-current assets available for sale minus the selling expenses increases on the subsequent
balance sheet date, the amount previously written down shall be restored and reversed within the amount of asset impairment loss
recognized after being classified as available for sale assets, and the reversed amount shall be included in the current profits and
losses. The impairment loss of assets recognized before being classified as available for sale assets shall not be reversed. When the
net amount of fair value of disposal group available for sale minus the selling expenses increases on the subsequent balance sheet
date, the amount previously written down shall be restored and reversed within the amount of asset impairment loss recognized as
non-current assets in the disposal group measured according to this Standard after being classified into the categories available for
sale assets, and the reversed amount shall be included in the current profits and losses. The book value of goodwill that has been
offset and the impairment loss of non-current assets measured according to relevant Standard shall not be reversed before they are
classified as available for sale assets. The subsequent reversal amount of asset impairment loss recognized as disposal group
available for sale shall be increased in proportion to the share of the book value of non-current assets in the disposal group, except
goodwill, which are measured according to relevant 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.
77
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
2) For those formed from the business combination under different control, the initial investment cost is the fair value of the
combination consideration paid on the acquisition date.
When a long-term equity investment is formed from the business combination under different control through the Company’s
multiple transactions step by step, the accounting treatment shall be carried out based on whether the financial statements are
individual or consolidated:
① In individual financial statements, the initial investment cost accounted in cost method is the sum of the carrying value of the
equity investment originally held and the cost of new investment.
② In consolidate financial statements, judge whether the transactions constitute the “package deal”. If they do, the accounting
treatment shall be carried out on the basis of assuming all transactions as one transaction with the acquisition of control. If they do
not, for the acquiree’s equity held before the acquisition date, re-measurement shall be carried out according to the fair value of the
equity on the acquisition date and the difference between the fair value and the carrying value shall be recorded into current
investment income; if the acquiree’s equity held before the acquisition date involves other comprehensive income accounted in
equity method, other comprehensive income related to it shall be transferred into the income for the period in which the acquisition
date falls, with the exception of the other comprehensive incomes occurred because of the changes of net liabilities or net assets of
the defined benefit pension plans be re-measured for setting by the investees.
③ For those formed other than from business combination: If they are acquired in cash payment, the initial investment cost is the
purchase price actually paid; if they are acquired in the issue of equity securities, the initial investment cost is the fair value of the
issued equity securities; if they are acquired in debt restructuring, the initial investment cost shall be recognized according to the
Accounting Standards for Enterprises No. 12 - Debt Restructuring; if they are acquired in the exchange of non-monetary assets, the
initial investment shall be recognized according to the Accounting Standards for Enterprises No. 7 - Exchange of Non-Monetary
Assets.
(3) Method of subsequent measurement and recognition of profits and losses
Long-term equity investment with control over investees shall be accounted in cost method; long-term equity investment on
associated enterprises and joint ventures shall be accounted in equity method.
(4) Method of treating the disposal of the investment in a subsidiary stem by step through multiple transactions until the loss
of the controlling right
1) Individual financial statements
For the disposed equity, the difference between its fair value and the actually obtained price shall be recorded into current profits or
losses. For the residual equity, the part that still has significant effects on investees or with common control jointly with other parties
shall be accounted in equity method; the part that has no more control, common control or significant effects on investees shall be
accounted in accordance with the relevant regulation of the Accounting Standards for Enterprises No. 22 - Recognition and
Measurement of Financial Instruments.
2) Consolidated financial statements
① For the disposal of the investment in subsidiaries step by step until the loss of the controlling right through multiple transactions,
which do not constitute the “package deal”
Before the loss of the controlling right, for the balance between the disposal remuneration and the shares of net assets in the
subsidiaries that have been calculated since the acquisition date or combination date corresponding to the disposal of long-term
equity investment, capital reserve (capital premium) shall be adjusted, and if the capital premium is not sufficient for the write-down,
the retained earnings shall be written down.
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
78
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
subsidiary's equity investment shall be transferred into current investment income when the control ceases.
② For the disposal of the investment in subsidiaries step by step until the loss of the controlling right through multiple transactions,
which constitute the “package deal”
The accounting treatment shall be carried out on the basis of considering each transaction as a transaction of disposing the subsidiary
and losing control. However, before losing control, the difference between each disposal price before losing the control, and the
corresponding net assets share enjoyed of subsidiary when disposing long-term equity investment, shall be recognized as other
comprehensive income in the consolidated financial statements and when the control ceases, transferred into current profits or losses
of the period of losing control.
(5) Impairment test method and impairment provision method
When there is objective evidence indicating impairment of the investment in subsidiaries, joint ventures and cooperative enterprises
on the balance sheet date, corresponding provision for impairment shall be made according to the difference between the book value
and recoverable amount.
23. Investment Property
Measurement mode of investment real estates
Measurement of cost method
Depreciation or amortization method
1. The term "investment real estate" includes the right to use any land which has already been rented, the right to use any land which
is held and prepared for transfer after appreciation, and the right to use any building which has already been rented.
2. The Company initially measures the investment property according to the costs, and adopts the cost method in the subsequent
measurement of investment property, and adopts the same methods with fixed assets and intangible assets to withdraw depreciation
or amortization. When there is any indication of impairment of investment property on the balance sheet date, corresponding
provision for impairment shall be made according to the difference between the book value and recoverable amount.
24. Fixed Assets
(1) Recognized Standard of Fixed Assets
The term "fixed assets" refers to the tangible assets that simultaneously possess the features as follows: they are held for the sake
of producing commodities, rendering labor service, renting or business management; and their useful life is in excess of one fiscal
year. No fixed asset may be recognized unless it simultaneously meets the conditions as follows: (1) The economic benefits are
likely to flow into the enterprise; (2) The cost of the fixed asset can be measured reliably.
(2) Depreciation Method
Expected net salvage
Category Depreciation method Useful life (year) Annual deprecation
value
Straight-line
Houses and buildings 20-25 5-10 3.6-4.75
depreciation
Straight-line
Transportation 5 5 19
depreciation
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
79
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
(3) Recognition Basis, Pricing and Depreciation Method of Fixed Assets by Finance Lease
Not applicable.
25. Construction in Progress
1. No construction in progress may be recognized unless it simultaneously meets the conditions as follows: (1) The economic
benefits are likely to flow into the enterprise; (2) The cost of the fixed asset can be measured reliably. Construction in progress shall
be measured according to the occurred actual costs before the assets available for the intended use.
2. When the construction in progress is available for the intended use, it shall be transferred to fixed assets according to the actual
cost of the project. For construction in progress available for the intended use but not dealing with final accounts of completed
project, it shall be transferred to fixed assets according to the estimated value first, and then adjust original temporarily estimated
value based on the actual costs after the final accounts of completed project, but not adjust the depreciation that was already
calculated.
26. Borrowing Costs
1. Recognition Principle of Capitalization of Borrowing Costs
Where the borrowing costs incurred to the Company can be directly attributable to the acquisition and construction or production of
assets eligible for capitalization, it shall be capitalized and recorded into the costs of relevant assets. Other borrowing costs shall be
recognized as expenses when it occurred, and shall be recorded into the current profits and losses.
2. Capitalization Period of Borrowings Costs
(1) The borrowing costs shall not be capitalized unless they simultaneously meet the following requirements: 1) The asset
disbursements have already incurred; 2) The borrowing costs have already incurred; 3) The acquisition and construction or
production activities which are necessary to prepare the asset for its intended use or sale have already started.
(2) Where the acquisition and construction or production of a qualified asset is interrupted abnormally and the interruption period
lasts for more than 3 months, the capitalization of the borrowing costs shall be suspended. The borrowing costs incurred during such
period shall be recognized as expenses, and shall be recorded into the profits and losses of the current period, till the acquisition and
construction or production of the asset restarts.
(3) When the acquisition and construction or production of a qualified asset eligible for capitalization are available for its intended
use or sale, the capitalization of borrowing costs shall be stopped.
3. Capitalized rate and amount of borrowing costs
To the extent that funds are borrowed specifically for the purpose of acquiring or constructing a qualifying asset, the amount of
borrowing costs eligible for capitalization on that asset is determined as the actual interest costs (including amortization of discount
and premium confirmed according to effective interest method) incurred on that borrowing during the period less any investment
income on the temporary investment of the borrowing. To the extent that funds are borrowed generally and used for the purpose of
acquiring or constructing a qualifying asset, the amount of borrowing costs eligible for capitalization shall be determined by applying
a capitalization rate to the weighted average of excess of accumulated expenditures on qualifying asset over that on specific purpose
borrowing.
27. Biological Assets
Not applicable.
80
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
28. Oil and Gas Assets
Not applicable.
29. Right-of-use Assets
On the start date of the lease term, the Group deems the right-of-use assets and lease obligations, except for the simplified short-term
lease and low-value leases.
The Group initially measures right-of-use assets at cost. The cost includes:
1. The initial measurement amount of the lease obligation.
2. If a lease incentive exists for lease payments made on or before the commencement date of the lease term, the amount related to
the lease incentive already taken is deducted.
3. Initial direct costs incurred.
4. Costs expected to be incurred by the Group for dismantling and removing the leased asset(s), restoring the premises where the
leased asset(s) is/are located, or restoring the leased asset(s) to the status agreed in the leasing clauses. If the aforementioned costs are
incurred for inventory production, relevant provisions of Accounting Standard for Business Enterprises No.1 - Inventory is applicable.
The Group recognizes and measures the costs described in Item 4 above in accordance with relevant provisions of the Accounting
Standards for Business Enterprises No. 13 - Contingencies. The initial direct costs incurred refer to the incremental costs incurred to
achieve the lease. Incremental costs are costs that would not have been incurred had the business not acquired the lease.
The Group depreciates the right-of-use assets in accordance with relevant depreciation provisions of the Accounting Standards for
Business Enterprises No. 4 - Fixed Assets. If it is reasonably certain that the ownership of the leasehold property will be obtained at
the end of the lease term, the Group will depreciate the leasehold property over its remaining service life. If it is not reasonably
certain that the ownership of the leasehold property will be obtained at the end of the lease term, the Group will depreciate the leased
asset(s) over the lease term or the remaining service life, whichever is shorter.
The Group determines the impairment of the right-of-use assets and conducts accounting treatment of the impairment losses already
identified in accordance with relevant provisions of the Accounting Standards for Business Enterprises No. 8 - Asset Impairment.
30. Intangible Assets
(1) Pricing Method, Useful Life and Impairment Test
1. Intangible assets include right to use land sites, use right of software etc. and conduct the initial measurement according to the
costs.
2. With regard to intangible assets with limited service life, it shall be amortized systematically and reasonably within their service
life according to the expected implementation of economic interests related to the intangible assets. If it can’t recognize the expected
implementation reliably, it shall be amortized by straight-line method. The specific useful lives are as follows:
Items Useful life for amortization (years)
Use right of lands Statutory life of land use right
Use right of software 5
The intangible assets with uncertain service life shall not be amortized, and the Company rechecks the service life of the intangible
assets in every accounting period. For intangible assets with uncertain service, the recognition basis is without certain service life and
expected benefit life.
3. For intangible assets with definite service life, when there is any indication of impairment on the balance sheet date, corresponding
provision for impairment shall be made according to the difference between the book value and recoverable amount; for intangible
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.
81
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
(2) Accounting Policies of Internal R&D Expenses
Not applicable.
31. Impairment of Long-term Assets
For long-term assets, such as long-term equity investment, investment property measured by cost model, fixed assets, construction in
progress, and intangible assets with limited service life, the Company shall estimate the recoverable amount if there are signs of
impairment on balance sheet date. For intangible assets with uncertain goodwill or service life formed by enterprise combination,
whether or not there is sign of impairment, impairment test shall be conducted every year. Goodwill combination and its related
assets group or combination of assets group shall be conducted the impairment test.
If the recoverable amount of the above-mentioned long-term assets is lower than its carrying value, it shall make the preparation for
assets impairment based on its balance and be recorded into current profits and losses.
32. Long-term Prepaid Expenses
Long-term deferred expenses refer to general expenses with the amortized period over one year (one year excluded) that have
occurred. Long-term prepaid expense shall be recorded into the account according to the actual accrual. Long-term prepaid expense
shall be amortized averagely within benefit period or specified period. In case of no benefit in the future accounting period, the
amortized value of such project that fails to be amortized shall be transferred into the profits and losses of the current period.
33. Contract Liabilities
The Company presents contract assets or contract liabilities on the balance sheet according to the relationship between the fulfillment
of its contract performance obligations and its customers’ payment. Obligations to be fulfilled by the Company of transferring
commodities or providing services to customers, as the Company has received or should receive customers’ considerations, are
presented as contract liabilities.
34. Payroll
(1) Accounting Treatment of Short-term Compensation
During the accounting period when the employees providing the service for the Company, the actual short-term compensation shall
be recognized as liabilities, and be recorded into the current profits and losses or related assets costs.
(2) Accounting Treatment of the Welfare after Demission
The Company's welfare after demission plans is divided into defined contribution plans and defined benefit plans (1) During the
accounting period when the employee providing service for the Company, the amount paid in line with the setting drawing plan will
be recognized as liabilities and recorded into current profits or losses or cost of relevant assets.
(2) The accounting treatment of defined benefit plans usually consists of the following steps:
1) According to the expected cumulative welfare unit method, adopt unbiased and mutually consistent actuarial assumptions to
evaluate related demographic variables and financial variables, measure the obligations generated from defined benefit plans and
recognize the period in respect of related obligations. Meanwhile, discount the obligations generated from defined benefit plans to
recognize their present value and the current service costs;
2) If there are any assets in a defined benefit plan, the deficit or surplus formed from the present value of the defined benefit plan
obligations less the fair value of the defined benefit plan assets shall be recognized as net liabilities or net assets of a defined benefit
plan. If there is any surplus in a defined benefit plan, the net assets of the plan shall be measured at the lower of the surplus or the
upper asset limit;
3) At the end of the period, the staff remuneration costs generated from a defined benefit plan shall be recognized as services costs,
net interests of the net liabilities or net assets of the plan and changes from the re-measurement of the net liabilities or net assets of
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
82
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
recognized in other comprehensive income may be transferred within the equity scope.
(3) Accounting Treatment of Demission Welfare
When the Company is unable to unilaterally withdraw the plan on the cancellation of labor relationship or the layoff proposal, or
when recognizing the costs or expenses (the earlier one between the two) related to the reorganization of paying the demission
welfare, should recognize the payroll liabilities from the demission welfare and include in the current gains and losses.
(4) Accounting Treatment of Other Welfare of the Long-term Employees
The Company provides the other long-term employee benefits for the employees, and for those met with the defined contribution
plans, accounting treatment should be conducted according to the related regulations of the defined contribution plans; the for the
others long-term employee benefits except for the former, accounting treatment should be conducted according to the related
regulations of the defined benefit plans. In order to simplify the related accounting treatment, the payrolls shall be recognized as
service costs, the net amount of interest of net liabilities and net assets of other welfare of the long-term employees. The total net
amounts made up from the changes of measuring the net liabilities and net assets of other welfare of the long-term employees again
shall be recorded into the current profits and losses or related assets costs.
35. Lease Liabilities
On the start date of the lease term, the Group deems the right-of-use assets and lease obligations, except for the simplified short-term
lease and low-value leases.
The Group initially measures the lease obligation at the present value of the lease payments outstanding at the commencement date of
the lease term.
The term "lease payments" refers to the payments made by the Group to the lessor in terms of the use of the leased asset(s) within the
lease term, including:
(1) fixed lease payments and substantial fixed lease payments (if a lease incentive exists, deduct the amount related to the lease
incentive);
(2) the variable lease payments that depend on indexation or ratio, which are determined according to the indexation or ratio on the
commencement date of the lease term in the initial measurement;
(3) the exercise price of the purchase option, when applicable, if the Group is reasonably certain that the option will be exercised;
(4) payments required to be made for exercising the option to terminate the lease if the lease term reflects that the Group will exercise
such an option;
(5) estimated amount payable based on the residual value of the guarantee provided by the Group.
When calculating the present value of lease payments, the Group uses the interest rate implicit in lease as the rate of discount. If the
interest rate implicit in lease cannot be determined, the Group’s incremental lending rate is used as the rate of discount.
36. Provisions
1. The obligation such as external guaranty, litigation or arbitration, product quality assurance, loss contract, pertinent to a
contingencies shall be recognized as the provisions when the following conditions are satisfied simultaneously: ① That obligation is
a current obligation of the enterprise; ② It is likely to cause any economic benefit to flow out of the enterprise as a result of
performance of the obligation; and ③ The amount of the obligation can be measured in a reliable way.
2. The Company shall conduct the initial measurement to provisions according to the best estimate number needed for performing the
related current obligation and recheck the carrying value of accrued liabilities on balance sheet date.
37. Share-based Payment
Not applicable.
38. Other Financial Instruments such as Preference Shares and Perpetual Bonds
Not applicable.
83
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
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:
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
84
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
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; All housing payment should be paid in case of refusal to adopt automatic payment
for bank mortgage loan). The earlier one of house delivery time designated in the House Delivery Notice delivered (the delivery will
be deemed completed if the owners fail to conduct pertinent procedures for their personal reasons within a designated period) and
time when the owners complete the procedures of delivery in effect should be determined as the time when the revenue is recognised.
2) Providing Labor Services
If the provision of labor services can be reliably estimated (all the following conditions are met: ① The amount of income can be
measured reliably; ②The relevant economic benefits are likely to inflow to the Company; ③ The progress of the transaction can be
reliably determined; ④ The cost incurred and to be incurred in the transaction can be measured reliably), it shall recognize the
revenue from providing services employing the percentage-of-completion method, and confirm the completion of labor service
according to the costs incurred as a percentage of the total estimated costs. If the Company can’t, on the date of the balance sheet,
reliably estimate the outcome of a transaction concerning the labor services it provides, it shall be handled under the following
conditions: If the cost of labor services incurred is expected to be compensated, the revenue from the providing of labor services shall
be recognized in accordance with the amount of the cost of labor services incurred, and the cost of labor services shall be carried
forward at the same amount; If the cost of labor services incurred is not expected to compensate, the cost incurred should be included
in the current profits and losses, and no revenue from the providing of labor services may be recognized.
Property management revenue shall be recognized when property management services have been provided, economic benefits
related to property management services can flow into the enterprise, and costs related to property management can be reliably
measured.
3) Transferring the Right to Use Assets
The revenue of transferring the right to use assets may not be recognized unless the following conditions are both met: the relevant
economic benefits are likely to inflow to the Company; and the revenue can be reliably measured. The interest income shall be
recognized according to the time and actual interest rate in which other people use the Company’s monetary funds. Royalty revenue
shall be recognized according to the chargeable time and method stipulated in related contracts and agreements.
According to the lease date and lease amount agreed in the lease contract and agreement, the realization of rental property income
shall be recognized when relevant economic benefits are likely to flow in.
4) Software sales revenue
① Revenue recognition and measurement methods for sales of custom software and independent software products
Custom software refers to the special software designed and developed after the full on-site investigation of the user's business
according to the software development contract signed with the customer based on the actual needs of the user, and the resulting
developed software is not universal. Revenue is recognized over time based on the progress of completed performance obligations
over the contract period only if the goods produced by the Company in the course of performance have an irreplaceable use and the
Company is entitled to receive payment for the cumulative portion of performance completed to date throughout the contract period,
with the progress of completed performance obligations determined by the proportion of the contract costs actually incurred to
complete the performance obligations to the total estimated contract costs. Otherwise, the revenue is recognized at a certain point in
time.
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.
85
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
② Revenue recognition and measurement methods for systems integration contracts
System integration includes the sale and installation of purchased merchandise and software products. The revenue is recognized
when the Company has transferred the primary risks and rewards of the ownership of the purchased merchandise to the purchaser;
the Company neither retained the continued management rights usually associated with the ownership, nor effectively controlled the
sold goods; the installation and commissioning of the system have been completed and the system has been put into trial operation,
or the initial inspection report of the purchaser is obtained; the economic benefits relevant to the transaction are likely to flow into the
Company, the relevant costs can be reliably measured.
③ Revenue recognition and measurement methods for technical service revenue
Technical service revenue mainly refers to the business of providing consulting, implementation and after-sales services of products
to customers as required by contracts. If a service period is agreed upon in a contract, it is considered as a performance obligation to
be performed within a certain period of time, and revenue is recognized for services settled with the customer in accordance with the
contracted service period during the service provision period.
5) Other Business Income
According to the stipulations of relevant contracts and agreements, when the economic benefits related to the transaction can flow
into the enterprise and the costs related to the income can be reliably measured, the realization of other business income shall be
confirmed.
3. Measurement of Revenue
The Company should measure revenue according to the transaction prices apportioned to each of the individual contract performance
obligations. In determining a transaction price, the Company considers the impact of a number of factors, including variable
consideration, significant financing components in contracts, non-cash consideration, and consideration payable to customers.
(1) Variable consideration
The Company determines the best estimate of variable consideration according to the expected value or the amount most likely to
occur. But a transaction price containing variable consideration should not exceed the amount from the accumulated recognized
revenue that will probably not have any significant reversal when related uncertainties are eliminated. When assessing whether the
significant reversal of accumulated recognized revenue is almost impossible or not, a company should concurrently consider the
possibility and weight of the revenue reversal.
(2) Significant financing component
When a contract contains any financing component, the Company should determine the transaction price according to the amount
payable that is assumed to be paid in cash by the customer when it acquires control over the commodity. The difference between the
transaction price and the contract consideration should be amortized in the effective interest method during the contract period.
(3) Non-cash consideration
When a customer pays non-cash consideration, the Company should determine the transaction price according to the fair value of the
non-cash consideration. When such fair value cannot be reasonably estimated, the Company will indirectly determine the transaction
price by reference to the individual price committed by the Company for transferring the commodity to the customer.
(4) Consideration payable to a customer
For consideration payable to a customer, the Company should deduct the transaction price from the consideration payable, and
deduct the revenue for the current period at either the recognition of related revenue or the payment (or committed payment) of the
consideration to the customer, whichever is earlier, but excluding the case in which the consideration payable to the customer is for
the purpose of acquiring from the customer other commodities that can be obviously distinguished.
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
86
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
consideration payable to the customer.
Differences in accounting policies for the recognition of revenue caused by different business models for the same type of business
Not applicable.
40. Government Grants
1. If the government subsidies meet with the following conditions at the same, it should be recognized: (1) The entity will
comply with the condition attaching to them; (2) The grants will be received from government. If a government subsidy is a
monetary asset, it shall be measured according to the amount received or receivable. If a government subsidy is a non-monetary asset,
it shall be measured at its fair value, and shall be measured at a nominal amount when the fair value cannot be obtained reliably.
2. Judgment basis and accounting methods of government subsidies related to assets
The government subsidies that are acquired for construction or form long-term assets in other ways according to government
documents shall be defined as asset-related government subsidies. For those not specified in government documents, the judgment
shall be made based on the compulsory fundamental conditions for acquiring the subsidies. If the subsidies are acquired with
construction or the formation of long-term assets in other ways as fundamental conditions, they shall be recognized as asset-related
government subsidies. For asset-related government subsidies, the carrying value of related assets shall be written down or
recognized as deferred income. If asset-related government subsidies are recognized as deferred income, it shall be recorded into
profits or losses by period in a reasonable and systemic manner within the life of related assets. Government subsidies measured at
the nominal amount shall be directly recorded into current profits or losses. If related assets are sold, transferred, disposed of or
destroyed before the end of their life, the undistributed balance of related deferred income shall be transferred into the profits or
losses for the period of the asset disposal.
3. Judgment basis and accounting treatment of profits-related government subsidies
Government subsidies other than asset-related government subsidies shall be defined as profits-related government subsidies. For
government subsidies consisting of both asset-related parts and profits-related parts, which are difficult to judge whether they are
related to assets or profits, the entirety shall be classified as profits-related government subsidies. Profits-related government
subsidies that are used to compensate the related future expenses or losses shall be recognized as deferred income and shall be
included into the current profit/losses during the period when the relevant expenses or losses are recognized; those subsidies used to
compensate the related expenses or losses incurred shall be directly included into the current profits/losses.
4. Government subsidies related to the Company’s routine operating activities shall be included into other income or write down
related costs according to the economic business nature. Government subsidies not related to the Company’s routine activities shall
be included into non-operating income and expenditure.
41. Deferred Income Tax Assets/Deferred Income Tax Liabilities
1. In accordance with the balance (the item not recognized as assets and liabilities can confirm their tax bases according to the tax law,
the balance between the tax bases and its carrying amount) between the carrying amount of assets or liabilities and their tax bases,
deferred tax assets and deferred tax liabilities should be recognized at the tax rates that are expected to apply to the period when the
asset is realized or the liability is settled.
2. A deferred tax asset shall be recognized within the limit of taxable income that is likely to be obtained to offset the deductible
temporary differences. At the balance sheet date, where there is strong evidence showing that sufficient taxable profit will be
available against which the deductible temporary difference can be utilized, the deferred tax asset unrecognized in prior period shall
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.
87
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
4. The current income tax and deferred income tax of the Company are recorded into the current gains and losses as income tax
expenses or revenue, except in the following circumstances: (1) Business combination; (2) The transaction or event directly included
in owner’ equity.
42. Lease
(1) Accounting Treatment of Operating Lease
1. Lessee
The Group shall, when as the lessee, on the commencement date of the lease term, recognize the right-of-use assets and lease
obligations for the lease, unless it is a simplified short-term lease or low-value asset lease.
After the commencement date of the lease term, the Group uses the cost model for subsequent measurement of right-of-use assets.
The Group depreciates the right-of-use assets in accordance with relevant depreciation provisions of the Accounting Standards for
Business Enterprises No. 4 - Fixed Assets. If the lessee can reasonably ascertain that the ownership of the leasehold property will be
obtained at the end of the lease term, it shall depreciate the leasehold property over its remaining service life. If it is not reasonably
certain that the ownership of the leasehold property will be obtained at the end of the lease term, it shall depreciate the leased asset(s)
over the lease term or the remaining service life, whichever is shorter. The Group will determine the impairment of the right-of-use
assets and conduct accounting treatment of the impairment losses already identified in accordance with relevant provisions of the
Accounting Standards for Business Enterprises No. 8 - Asset Impairment.
The Group calculates the interest expenses of the lease obligations during each period of the lease term at a fixed periodic interest
rate, and includes them in profit or loss for the current period. Where the Accounting Standards for Business Enterprises No. 17 -
Borrowing Costs and other standards provide that such interest expenses shall be included in the cost of related assets, such
provisions shall be observed.
The Group does not recognize the right-of-use assets and lease liabilities for short-term leases and low-value asset leases. In each
period within the lease term, the relevant lease payments for short-term leases and low-value asset leases are included in cost of the
related assets or profit or loss for the current period on a straight-line basis.
2. Lessor
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.
88
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
43. Other Important Accounting Policies and Accounting Estimations
1. Confirmation standard and accounting handling method for operation termination
Components which meet one of the following conditions, have been disposed or divided as held for sale category and can be
distinguished separately are confirmed as operation termination.
1) The component represents one important independent main business or one single main operation area.
2) The component is one part of a related plan which plans to dispose one independent main business or one single main operation
area.
3) The component is a subsidiary which is obtained for resale specially.
44. Changes in Main Accounting Policies and Estimates
(1) Change of Accounting Policies
□Applicable Not applicable
(2) Changes in Accounting Estimates
□Applicable Not applicable
(3) Adjustments to Financial Statement Items at the Beginning of the Year of the First Implementation of the New
Accounting Standards Implemented since 2023
□Applicable Not applicable
45. Other
In the Note of the financial statements, the data of the period-beginning refers to the financial statement data on 1 January 2023;
the data of the period-end refers to the financial statement data on 30 June 2023; the Reporting Period refers to the H1 2023; the
same period of last year refers to the H1 2022. The same to the Company as the parent.
VI Taxes
1. Main Taxes and Tax Rates
Category of taxes Tax basis Tax rate
Sales of goods or provision of taxable
VAT Note 1
services
Applied to 7%, 5%, 1% separately
Urban maintenance and construction tax Turnover tax payable
according to the regional level
Enterprise income tax Taxable income 25%, 20%, 15%, 16.5%
Added value generated from paid transfer
of the use right of state-owned lands and
VAT of land 30%-60%
property right of above-ground buildings
and other attachments
Levied according to price: paid according
Real estate tax to 1.2% of the residual value of the real 1.2%, 12%
estate’s original value after deducted
89
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
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.
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%
90
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
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 2023.
As per the "Announcement on Income Tax Preferential Policies for Small and Micro Enterprises and Individual Industrial and
Commercial Taxpayers" (Announcement No. 6 of 2023 of the Ministry of Finance and the State Taxation Administration) and the
"Announcement of the State Taxation Administration on Matters Related to Collection and Administration of Income Tax
Preferential Policies for Small Enterprises with Low Profits" (Announcement No. 6 of 2023 of the State Taxation Administration),
for small and micro-profit enterprises, if their annual taxable income does not exceed RMB1 million from 1 January 2023 to 31
December 2024, 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%
91
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
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 42,693.32 43,833.00
Bank deposits 1,385,485,202.97 1,512,202,363.19
Other monetary funds 6,676,731.47 5,282,697.64
Total 1,392,204,627.76 1,517,528,893.83
Of which: total amount deposited
63,964,312.71 66,436,595.66
overseas
Total amount of restriction in use by
15,539,145.06 7,835,036.35
guaranteed, pledged or frozen
Other notes:
Among other monetary assets, the funds with limited use rights mainly include the margin and interest of RMB3,332,452.99; the
funds with limited use rights in bank deposits mainly include the bank frozen funds of RMB6,476,231.24 and the interest on time
deposits of RMB5,270,833.33, plus the balance of the bank margin account of RMB459,627.50. The above amount is not regarded as
cash and cash equivalents due to restrictions on use.
2. Trading Financial Assets
Unit: RMB
Item Ending balance Beginning balance
Of which:
Of which:
Other notes:
3. Derivative Financial Assets
Unit: RMB
Item Ending balance Beginning balance
Other notes:
4. Notes Receivable
(1) Notes Receivable Listed by Category
Unit: RMB
Item Ending balance Beginning balance
Total 0.00 0.00
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
Of which:
Of which:
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
92
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
(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
(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
Reason for
Name of the entity Nature Written-off amount procedures because of related-
verification
performed party transactions
Notes of the verification of notes receivable
5. Accounts Receivable
(1) Listed by Category
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Category
Withdrawal Carrying value Withdrawal Carrying value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Accounts
receivable
withdrawal
of bad debt 131,145,425.55 23.32% 110,207,671.91 84.03% 20,937,753.64 111,808,371.14 20.01% 109,689,294.54 98.10% 2,119,076.60
provision
separately
accrued
Of which:
Accounts
receivable
withdrawal
of bad debt 431,328,190.78 76.68% 35,340,105.27 8.19% 395,988,085.51 447,078,385.18 79.99% 29,263,546.48 6.55% 417,814,838.70
provision
of by
group
Of which:
93
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Total 562,473,616.33 100.00% 145,547,777.18 25.88% 416,925,839.15 558,886,756.32 100.00% 138,952,841.02 24.86% 419,933,915.30
Bad debt provision separately accrued: 110,207,671.91
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 bad Uncollectible for a long
30,243,231.37 9,308,427.73 30.78%
debt provision separately period
accrued
Total 131,145,425.55 110,207,671.91
Withdrawal of bad debt provision by group: 35,340,105.27
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Portfolio of credit risk features 253,508,004.18 25,162,778.29 9.93%
Portfolio of transactions with
177,820,186.60 10,177,326.98 5.72%
other related parties
Total 431,328,190.78 35,340,105.27
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 Ending balance
Within one year (including 1 year) 312,921,794.00
One to two years 88,024,382.29
Two to three years 15,229,615.66
More than three years 146,297,824.38
Three to four years 5,415,310.89
Four to five years 2,471,780.12
Over 5 years 138,410,733.37
Total 562,473,616.33
(2) Bad Debt Provision Withdrawal, Reversed or Recovered in the Current Period
Withdrawal of bad debt provision:
Unit: RMB
Beginning
Category Changes in the current period Ending balance
balance
94
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Reversed or
Withdrawal Verification Others
recovered
Bad debt
provision 109,689,294.54 518,377.37 110,207,671.91
accrued by item
Withdrawal of
bad debt
29,263,546.48 6,076,558.79 35,340,105.27
provision by
group
Total 138,952,841.02 6,594,936.16 145,547,777.18
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
Reason for
Name of the entity Nature Written-off amount procedures because of related-
verification
performed party transactions
Notes to verification of accounts receivable:
(4) Top 5 of the Ending Balance of the Accounts Receivable Collected according to Arrears Party
Unit: RMB
Proportion to total
Ending balance of bad
Name of the entity Ending balance ending balance of
debt provision
accounts receivable
Shenzhen Bay Technology Development Co., Ltd. 107,824,285.09 19.17% 6,743,517.22
Shenzhen Jiyong Properties & Resources Development
93,811,328.05 16. 68% 93,811,328.05
Company
Hebei Shenbao Investment Development Co., Ltd. 29,580,856.88 5.26% 887,425.71
ShenZhen Special Economic Zone Real Estate &
10,072,563.13 1.79% 1,252,620.81
Properties (Group) Co., Ltd.
Shenzhen Shenfubao (Group) Co., Ltd. 4,153,519.42 0.74% 159,605.58
Total 245,442,552.57 43.64%
(5) Accounts Receivable Derecognized due to the Transfer of Financial Assets
(6) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement of
Accounts Receivable
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.
95
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
□Applicable Not applicable
Other notes:
7. Prepayment
(1) Prepayment Listed by Aging Analysis
Unit: RMB
Ending balance Beginning balance
Aging
Amount Proportion Amount Proportion
Within 1 year 7,015,536.66 68.73% 98,477,532.46 98.14%
One to two years 1,807,120.94 17.70% 1,652,279.14 1.65%
Two to three years 1,173,932.28 11.50% 1,438.19 0.00%
More than three years 211,234.43 2.07% 210,556.77 0.21%
Total 10,207,824.31 100,341,806.56
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 (fill in the full name) Carrying amount
of the prepayments (%)
Beijing Jingdong Century Information Technology
1,260,657.76 12.35%
Co., Ltd.
China State Construction & Engineering 4th Bureau
614,940.37 6.02%
5th Corp Limited
Huaxia International Communications Engineering
510,389.00 5.00%
Supervision Co., Ltd.
Jinan Electric Power Company of State Grid
435,734.43 4.27%
Shandong Electric Power Company
Foshan Diousdragon Furniture Co., Ltd. 289,230.00 2.83%
Total 3,110,951.56 30.48%
Other notes:
8. Other Receivables
Unit: RMB
Item Ending balance Beginning balance
Interests receivable 0.00 0.00
Dividends receivable 0.00 0.00
Other receivables 624,876,343.49 639,903,523.33
Total 624,876,343.49 639,903,523.33
(1) Interest Receivable
1) Category of Interest Receivable
Unit: RMB
Item Ending balance Beginning balance
Total 0.00 0.00
96
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
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
Total 0.00 0.00
2) Significant Dividends Receivable Aging over 1 Year
Unit: RMB
Whether occurred
Project (or investee) Ending balance Aging Reason impairment and its
judgment basis
3) 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 10,178,809.17 14,333,480.59
Margin 34,107,085.10 33,052,554.40
Reserve fund 669,713.78 315,131.82
Payment on behalf 4,524,986.31 7,861,406.33
External intercourse funds 647,238,111.03 645,712,452.33
Others 22,522,486.45 26,868,828.99
Total 719,241,191.84 728,143,854.46
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 as at 1 January
58,445,816.20 29,794,514.93 88,240,331.13
2023
Balance as at 1 January
2023 in the current
period
Amount accrued for the
6,103,555.43 20,961.79 6,124,517.22
current period
Balance as at 30 June 64,549,371.63 29,815,476.72 94,364,848.35
97
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
2023
Changes of carrying amount with significant amount changed of loss provision in the current period
□Applicable Not applicable
Disclosure by aging
Unit: RMB
Aging Ending balance Carrying amount
Within one year (including 1 year) 37,662,808.00 45,898,989.35
One to two years 49,059,147.91 582,305,977.29
Two to three years 547,938,076.57 32,848,373.42
More than three years 84,581,159.36 67,090,514.40
Three to four years 32,976,097.34 1,460,635.19
Four to five years 1,176,811.01 1,563,169.64
Over 5 years 50,428,251.01 64,066,709.57
Total 719,241,191.84 728,143,854.46
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
29,794,514.93 20,961.79 29,815,476.72
accrued by item
Withdrawal of bad
debt provision by 58,445,816.20 6,103,555.43 64,549,371.63
group
Total 88,240,331.13 6,124,517.22 94,364,848.35
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
Reason for
Name of the entity Nature Written-off amount procedures because of related-
verification
performed party transactions
Notes to the verification of other receivables:
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 receivables %
Shenzhen Xinhai
Within 1 year, one
Holding Co., Ltd. Intercourse funds 576,568,974.73 80.16% 17,297,069.25
to five years
and the related
98
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
party Shenzhen
Xinhai Rongyao
Real Estate
Development Co.,
Ltd.
Shenzhen Bangling
Security deposit
Stock Cooperative 30,000,000.00 Three to four years 4.17% 15,000,000.00
and margin
Company
Shenzhen Bay
Technology Performance risk
16,342,327.84 Within 1 year 2.27% 490,269.84
Development Co., fund, margin
Ltd.
Shenzhen Qianhai
Advanced Within 1 year, one
Intercourse funds 10,720,575.27 1.49% 321,617.26
Information to two years
Service Co., Ltd.
Shenzhen Tianjun
Intercourse funds 10,000,000.00 Two to three years 1.39% 0.00
Industrial Co., Ltd.
Total 643,631,877.84 89.48% 33,108,956.35
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
reserves of reserves of
Item inventories or inventories or
impairment impairment
Carrying amount Carrying value Carrying amount Carrying value
provision for provision for
contract contract
performance performance
costs costs
R&D
10,608,749,592.61 6,648,404.13 10,602,101,188.48 10,778,950,699.23 6,648,404.13 10,772,302,295.10
expenses
Developing
242,794,704.84 242,794,704.84 199,674,693.59 199,674,693.59
properties
Contract
1,975,995.10 1,975,995.10 1,965,933.85 1,965,933.85
performance
99
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
costs
Raw
1,509,262.79 818,559.41 690,703.38 1,891,354.81 1,040,612.30 850,742.51
materials
Inventory
2,557,484.48 2,094,300.39 463,184.09 2,536,973.19 2,094,300.39 442,672.80
goods
Low-value
271,124.75 271,124.75 97,885.52 97,885.52
consumables
Total 10,857,858,164.57 9,561,263.93 10,848,296,900.64 10,985,117,540.19 9,783,316.82 10,975,334,223.37
Disclose main items of “R&D expenses” and interest capitalization in the following format:
Unit: RMB
Transferred Other
Increase Of which:
to decreas Accumulate
Estimate (R&D amount of
Time for developing ed d amount of Capital
Project d date of Estimated total Beginning expenses) capitalized
commencem properties amount Ending balance interest resourc
name completi investment balance for the interests for
ent for the for the capitalizatio es
on current the current
current current n
period period
period period
10
Lanhu Era 7 January 8,400,000,000. 4,686,202,152. 166,311,560. 4,852,513,713. 298,611,761. 60,308,251. Bank
Septemb
project 2021 00 53 57 10 36 38 loans
er 2026
SZPRD-
Fuchang
27
Garden 15 May 747,287,571.
December 911,330,000.00 747,287,571.94 0.00 Others
Phase II 2023 94
2018
(Fuhui
Huayuan)
Humen Sea 22 March 30 April 3,217,590,000. 2,361,567,910. 129,568,909. 2,491,136,820. 2,782,538.7 Bank
2,782,538.76
Bay project 2022 2024 00 93 22 15 6 loans
Guangming
21
Yutang 7 March 2,658,680,000. 1,792,278,782. 46,065,390.7 1,838,344,173. Bank
October 583,458.34 583,458.34
Shangfu 2022 00 42 9 21 loans
2024
project
Yupinluans
han
(commercia
l and
residential 236,433,505.64 412,752.52 236,846,258.16 Others
construction
project of
No. A117-
12 land)
Land of
Hongqi
6,648,404.13 6,648,404.13 Others
Town,
Haikou
Shenhui
37,256,048.16 31,716.38 37,287,764.54 Others
Garden
Fuyuantai
12,754,337.65 1,468,717.00 14,223,054.65 Others
project
Yangzhou
Shouxihu
31
Ecological 6 March 3,774,790,000. 231,250,626. 1,095,216,931.
August 863,966,304.45 Others
Health 2023 00 85 30
2026
Valley
project
Others 34,555,681.38 1,976,791.99 36,532,473.37 Others
100
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
18,962,390,000 10,778,950,699 747,287,571. 577,086,465. 10,608,749,592 301,977,758. 63,674,248.
Total 0.00
.00 .23 94 32 .61 46 48
Disclose main items of “Developing properties” in the following format:
Unit: RMB
Of which:
Accumulated amount of
Time of Beginning Increase for the Decrease for the amount of capitalized
Project name Ending balance
completion balance current period current period interest interests for
capitalization the current
period
SZPRD-
1 December
Langqiao 3,447,316.75 3,447,316.75 83,077,702.96
2012
International
SZPRD-Hupan
1 June 2015 56,815,090.28 90,123.14 56,724,967.14
Yujing Phase I
SZPRD-
12 January
Banshan 3,607,397.06 64,327.91 47,625.68 3,624,099.29 10,446,911.43
2022
Yujing Phase II
SZPRD-
Songhu 1 July 2017 24,200,327.47 271,385.28 23,928,942.19 27,205,315.95
Langyuan
SZPRD-Hupan 1 November
30,517,813.23 135,678.16 30,382,135.07 30,539,392.65
Yujing Phase II 2017
SZPRD-
2 December
Golden 72,260,564.44 4,270,881.01 8,633,730.49 67,897,714.96
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
SZPRD-
Fuchang
Garden Phase 15 May 2023 747,287,571.94 699,324,226.86 47,963,345.08
II (Fuhui
Huayuan)
Total 199,674,693.59 751,622,780.86 708,502,769.61 242,794,704.84 177,654,959.28
Classification of “Developing properties with the collection of payments in installments”, “Renting developing properties” and
“Temporary Housing”:
Unit: RMB
Increase for the current Decrease for the current
Project name Beginning balance Ending balance
period period
(2) Falling Price Reserves of Inventory and Impairment Reserves for Contract Performance Costs
Disclosure of falling provision withdrawal of inventory in the following format:
Classification by nature:
Unit: RMB
Increased amount of the Decreased amount for the
current period current period
Beginning Ending
Item Transferred- Notes
balance balance
Withdrawal Others back or Others
charged-off
101
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
R&D
6,648,404.13 6,648,404.13
expenses
Raw
1,040,612.30 222,052.89 818,559.41
materials
Inventory
2,094,300.39 2,094,300.39
goods
Total 9,783,316.82 222,052.89 9,561,263.93
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
Land of
Qiongshan, 6,648,404.13 6,648,404.13
Hainan
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
341,681.06 - 31,076.48 310,604.58
Collar’s Resort
Lanhushidai
238,303,509.98 60,308,251.38 - 298,611,761.36
Project
SZPRD-
Langqiao 2,971,986.54 - - 2,971,986.54
International
SZPRD-Hupan
1,249,515.42 - 7,148.32 1,242,367.10
Yujing Phase I
Humen Sea Bay
- 2,782,538.76 - 2,782,538.76
project
Guangming
Yutang Shangfu - 583,458.34 - 583,458.34
project
Total 242,866,693.00 63,674,248.48 38,224.80 306,502,716.68
(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
Impairment Carrying Impairment
Carrying amount Carrying value Carrying value
provision amount provision
SZPRD-Fuchang
Garden Phase II 109,392,112.37 109,392,112.37
(Fuhui Huayuan)
Municipal
engineering 991,952.00 991,952.00 1,094,632.90 1,094,632.90
retention money
102
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Total 110,384,064.37 110,384,064.37 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 impairment provision for contract assets in accordance with the general model of expected credit losses, the information related
to the impairment 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
Estimated
Ending carrying Impairment Ending carrying Estimated
Item Fair value disposal
amount provision amount disposal time
expense
Other notes:
12. Current Portion of Non-current Assets
Unit: RMB
Item Ending balance Beginning balance
Significant investments in debt obligations/other investments in debt obligations
Unit: RMB
Ending balance Beginning balance
Item Coupon Actual Maturity Coupon Actual Maturity
Par value Par value
rate interest rate date rate interest rate date
Other notes:
13. Other Current Assets
Unit: RMB
Item Ending balance Beginning balance
Prepaid VAT 12,232,463.61 16,846,758.27
Deducted input tax 58,657,816.56 28,950,002.85
Prepaid income tax 33,200.38 1,436,395.15
Prepaid land VAT 0.00 16,438,505.72
Prepaid urban construction tax 37,292.33 1,156,118.20
Prepaid education surcharge 26,637.38 825,798.74
Immediate rebate of receivable software
0.00 1,687.34
sales VAT
Total 70,987,410.26 65,655,266.27
Other notes:
14. Investments in Debt Obligations
Unit: RMB
103
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
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
2023 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
Accumulated
Change in provision for
fair value Accumulated losses
Beginning Accrued Ending
Item in the Cost changes in recognized in Notes
balance interest balance
reporting fair value other
period comprehensive
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
First stage Second stage Third stage
Expected loss in the
Bad debt provision Expected loss in the Total
Expected credit loss in duration (credit
duration (credit
the next 12 months impairment not
impairment occurred)
occurred)
Balance of 1 January
2023 in the current
period
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
Item Ending balance Beginning balance Interval of
104
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Bad debt Carrying Bad debt discount rate
Carrying amount Carrying value Carrying value
provision amount provision
Financing
21,920,095.92 21,920,095.92 22,651,454.07 22,651,454.07 0.14
lease accounts
Of which:
unrealized
11,607,188.38 11,607,188.38 13,169,492.65 13,169,492.65
financing
income
Total 21,920,095.92 21,920,095.92 22,651,454.07 22,651,454.07
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
2023 in the current
period
Changes of carrying amount with significant amount changed of loss provision in the current period
□Applicable Not applicable
(2) Derecognition of Long-term Receivables due to the Transfer of Financial Assets
(3) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement of
Long-term Receivables
Other notes:
17. Long-term Equity Investment
Unit: RMB
Increase/decrease for the current period
Beginning Gains and Cash Ending Ending
Withdra
balance Addition Reduced losses Adjustment Chang bonus or
wal of balance balance of
Investee al recognize of other es of profits Othe
(carrying investm impairme (Carrying depreciatio
value) investm d under comprehens other announc rs Value) n reserve
ent nt
ent the equity ive income equity ed to
provision
method issue
I. Joint ventures
Shenzhen Real
Estate Jifa 44,730,585. 1,722,873. 46,453,459.
Warehousing 29 98 27
Co., Ltd.
Tian’an
International
Building
7,037,952.3 7,120,847.6
Property 82,895.33
Management 1 4
Company of
Shenzhen
51,768,537. 1,805,769. 53,574,306.
Subtotal
60 31 91
II. Associated enterprises
Shenzhen 18,983,614. 18,983,614. 18,983,614
Wufang 14 14 .14
Ceramics
105
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Industrial Co.,
Ltd.
Shenzhen
Kangfu Health
165,000.00 165,000.00 165,000.00
Products Co.,
Ltd.
Shenzhen
Xinghao
Imitation 756,670.68 756,670.68 756,670.68
Porcelain Co.,
Ltd.
Shenzhen
Social Welfare
Company Fuda 326,693.24 326,693.24 326,693.24
Electronics
Factory
Shenzhen
Fulong
1,684,350.0 1,684,350.0 1,684,350.
Industry
0 0 00
Development
Co., Ltd.
Haonianhua 2,733,570.0 2,733,570.0 2,733,570.
Hotel 5 5 05
Shenzhen
Education
500,000.00 500,000.00 500,000.00
Fund Longhua
Investment
Shenzhen
Kangle Sports
540,060.00 540,060.00 540,060.00
Club Huangfa
Branch
Dankeng
Village Plants
1,168,973.2 1,168,973.2 1,168,973.
of Fumin in
0 0 20
Guanlan Town,
Shenzhen City
Shenzhen Bull
Entertainment 500,000.00 500,000.00 500,000.00
Co., Ltd.
Shenzhen
Lianhua
Caitian 1,475,465.9 1,475,465.9 1,475,465.
Property 1 1 91
Management
Co., Ltd.
Shenzhen
Yangyuan 1,030,000.0 1,030,000.0 1,030,000.
Industrial Co., 0 0 00
Ltd.
Jiakaifeng Co.,
Ltd. Bao’an 600,000.00 600,000.00 600,000.00
Company
Guiyuan
350,000.00 350,000.00 350,000.00
Garage
Shenzhen
Wuweiben
500,000.00 500,000.00 500,000.00
Roof Greening
Co., Ltd.
ShenzhenYuan
ping Plastic 240,000.00 240,000.00 240,000.00
Steel Doors
106
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Co., Ltd.
ShenzhenYoufa
ng Printing 100,000.00 100,000.00 100,000.00
Co., Ltd.
Shenzhen
Lusheng
Industrial 100,000.00 100,000.00 100,000.00
Development
Co., Ltd.
CSCEC
Intelligent
28,012,899. 63,120.0 28,001,398.
Parking 51,619.01
Technology 71 0 72
Co., Ltd.
59,767,296. 63,120.0 59,755,795. 31,754,397
Subtotal 51,619.01
93 0 94 .22
111,535,834 1,857,388. 63,120.0 113,330,102 31,754,397
Total
.53 32 0 .85 .22
Other notes:
18. Other Equity Instrument Investment
Unit: RMB
Item Ending balance Beginning balance
Gintian Industry (Group) Co., Ltd. 635,355.65 887,838.64
Total 635,355.65 887,838.64
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 Industry Not for business
(Group) Co., 2,955,000.66 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 861,702,509.37 14,495,902.20 37,192,716.83 913,391,128.40
107
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
2. Increased amount for
20,847,883.84 0.00 0.00 20,847,883.84
the current period
(1) Outsourcing
(2)Transfer from
inventory/fixed
20,847,883.84 0.00 0.00 20,847,883.84
assets/construction in
progress
(3) Business
combination increase
3. Decreased amount
-393,459.16 0.00 0.00 -393,459.16
for the current period
(1) Disposal
(2) Other transfer
(3) Exchange
-393,459.16 0.00 0.00 -393,459.16
adjustment
4. Ending balance 882,943,852.37 14,495,902.20 37,192,716.83 934,632,471.40
II. Accumulative
depreciation and
accumulative
amortization
1. Beginning balance 472,271,039.79 13,360,585.89 21,996,763.54 507,628,389.22
2. Increased amount for
17,963,132.97 0.00 3,002,225.94 20,965,358.91
the current period
(1) Withdrawal or
17,963,132.97 0.00 3,002,225.94 20,965,358.91
amortization
3. Decreased amount
-373,786.21 0.00 0.00 -373,786.21
for the current period
(1) Disposal
(2) Other transfer
(3) Exchange
-373,786.21 0.00 0.00 -373,786.21
adjustment
4. Ending balance 490,607,958.97 13,360,585.89 24,998,989.48 528,967,534.34
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
392,335,893.40 1,135,316.31 12,193,727.35 405,664,937.06
value
2. Beginning carrying
389,431,469.58 1,135,316.31 15,195,953.29 405,762,739.18
value
108
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
(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
Lease Reason for
income Range of fair value
Project Time of Floor area Beginning Closing fair
Location during this fair value changes
name completion (m2) 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 23,334.11 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 instance in 2017, relevant certifications of
property are in the procedure
Total 23,334.11
Other notes:
Note: As at 30 June 2023, the original carrying value of Meilin land was RMB3,885,469.40, the accumulated accrued depreciation
was RMB3,885,469.40, and the carrying value was RMB0.
21. Fixed Assets
Unit: RMB
Item Ending balance Beginning balance
Fixed assets 72,977,952.16 82,745,172.12
Total 72,977,952.16 82,745,172.12
(1) List of Fixed Assets
Unit: RMB
Houses and Machinery Transportation Decoration of
Item Other machinery Total
buildings equipment vehicle the fixed assets
I. Original
carrying value:
1. Beginning
129,859,285.29 6,457,738.92 19,461,561.97 37,715,645.88 57,075,135.08 250,569,367.14
balance
2. Increased
amount for the 100,458.85 405,630.12 1,921,221.97 2,427,310.94
current period
(1) Purchase 100,458.85 405,630.12 1,921,221.97 2,427,310.94
(2) Transfer from
construction in
progress
(3) Business
combination
increase
109
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
3. Decreased
amount for the 5,482,998.10 15,950.00 304,900.00 933,964.58 6,737,812.68
current period
(1) Disposal or
15,950.00 304,900.00 933,964.58 1,254,814.58
scrap
(2) Others 5,482,998.10 5,482,998.10
4. Ending
124,376,287.19 6,542,247.77 19,562,292.09 37,715,645.88 58,062,392.47 246,258,865.40
balance
II. Accumulative
depreciation
1. Beginning
95,882,680.45 2,648,956.94 13,790,571.17 18,649,255.82 36,777,013.48 167,748,477.86
balance
2. Increased
amount for the 1,073,376.55 368,465.41 899,185.22 3,739,759.14 3,329,303.47 9,410,089.79
current period
(1) Withdrawal 1,073,376.55 368,465.41 899,185.22 3,739,759.14 3,329,303.47 9,410,089.79
3. Decreased
amount for the 2,751,867.91 15,950.00 265,516.90 844,319.60 3,877,654.41
current period
(1) Disposal or
15,950.00 265,516.90 844,319.60 1,125,786.50
scrap
(2) Others 2,751,867.91 2,751,867.91
4. Ending
94,204,189.09 3,001,472.35 14,424,239.49 22,389,014.96 39,261,997.35 173,280,913.24
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 75,717.16 75,717.16
current period
(1) Disposal or
75,717.16 75,717.16
scrap
4. Ending
balance
IV. Carrying
value
1. Ending
30,172,098.10 3,540,775.42 5,138,052.60 15,326,630.92 18,800,395.12 72,977,952.16
carrying value
2. Beginning
33,900,887.68 3,808,781.98 5,670,990.80 19,066,390.06 20,298,121.60 82,745,172.12
carrying value
(2) List of Temporarily Idle Fixed Assets
Unit: RMB
Original carrying Accumulated Impairment
Item Carrying value Notes
value depreciation provision
110
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
(3) Fixed Assets Leased out by Operation Lease
Unit: RMB
Item Ending carrying amount
(4) Fixed Assets Failed to Accomplish Certification of Property
Unit: RMB
Item Carrying value Reason
Room 406, 2 units, Hulunbuir Guangxia Property rights disputes before, now have won a lawsuit with
2,274,041.26
Digital Building certification of the property being processed.
The office building will be removed due to the project
adjustment and a high-rise office building will be established
Room 401, 402, Sanxiang Business
614,187.20 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 2,888,228.46
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:
(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
111
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
(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 96,978,273.81 96,978,273.81
2. Increased amount for the current period 10,643,690.71 10,643,690.71
(1) New Leases 10,643,690.71 10,643,690.71
3. Decreased amount for the current
17,761,164.68 17,761,164.68
period
(1) Expiration of lease contract 1,297,675.17 1,297,675.17
(2) Lease termination 10,175,574.13 10,175,574.13
(3) Others 6,287,915.38 6,287,915.38
4. Ending balance 89,860,799.84 89,860,799.84
II. Accumulative depreciation
1. Beginning balance 26,809,858.16 26,809,858.16
2. Increased amount for the current period 10,342,761.89 10,342,761.89
(1) Withdrawal 10,342,761.89 10,342,761.89
3. Decreased amount for the current
3,068,278.39 3,068,278.39
period
(1) Disposal
Lease termination 3,068,278.39 3,068,278.39
4. Ending balance 34,084,341.66 34,084,341.66
III. Depreciation reserves
1. Beginning balance
2. Increased amount for the current period
(1) Withdrawal
3. Decreased amount for the current
period
(1) Disposal
4. Ending balance
IV. Carrying value
1. Ending carrying value 55,776,458.18 55,776,458.18
2. Beginning carrying value 70,168,415.65 70,168,415.65
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
112
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
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 1,790,929.22 1,790,929.22
2. Increased amount for the
323,300.59 323,300.59
current period
(1) Withdrawal 323,300.59 323,300.59
3. Decreased amount for the
current period
(1) Disposal
4. Ending balance 2,114,229.81 2,114,229.81
III. Depreciation reserves
1. Beginning balance
2. Increased amount for the
current period
(1) Withdrawal
3. Decreased amount for the
current period
(1) Disposal
4. Ending balance
IV. Carrying value
1. Ending carrying value 946,082.32 946,082.32
2. Beginning carrying value 1,269,382.91 1,269,382.91
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
Item Beginning Increased amount of the current period Decreased amount for the current period Ending
113
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
balance Transferred balance
Recognized
Internal into the
as
development Others current
intangible
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 or
Beginning
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 or
Beginning
events Ending balance
balance Withdrawal Disposal
generating
goodwill
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
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
114
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Decoration fee 21,980,602.46 1,990,869.21 4,357,979.80 21,985.79 19,591,506.08
Total 21,980,602.46 1,990,869.21 4,357,979.80 21,985.79 19,591,506.08
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
91,518,925.24 19,529,639.19 72,321,489.09 15,066,804.41
impairment of assets
Internal unrealized
438,745,107.84 109,686,276.96 439,263,809.16 109,815,952.29
profit
Deductible losses 930,939,553.18 232,593,025.59 1,159,867,308.26 288,683,459.58
Accrued land VAT 3,865,285,968.24 966,321,492.06 3,838,271,429.24 959,567,857.31
Estimated profit
calculated at pre-sale
94,559,293.40 23,639,823.35 35,766,814.24 8,941,703.56
revenue of property
enterprises
Other accrued expenses 6,301,806.64 1,422,129.16 4,512,525.55 974,808.89
Total 5,427,350,654.54 1,353,192,386.31 5,550,003,375.54 1,383,050,586.04
(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 696,675.48 174,168.87 967,914.16 241,978.54
than the tax basis
Total 696,675.48 174,168.87 967,914.16 241,978.54
(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
1,353,192,386.31 1,383,050,586.04
assets
Deferred income tax
174,168.87 241,978.54
liabilities
(4) List of Unrecognized Deferred Income Tax Assets
Unit: RMB
Item Ending balance Beginning balance
Deductible temporary differences 48,268,108.72 52,448,071.36
Deductible losses 515,895,750.67 508,734,563.66
Total 564,163,859.39 561,182,635.02
(5) Deductible Losses of Unrecognized Deferred Income Tax Assets will Due in the Following Years
Unit: RMB
115
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Year Ending amount Beginning amount Notes
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 81,285,680.12 The deductible losses of 2022
2028 7,161,187.01 The deductible losses of 2023
Total 515,895,750.67 508,734,563.66
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
Prepayment for
purchase of
fixed assets,
1,291,779.31 1,291,779.31 115,779.31 115,779.31
investment
properties and
intangible assets
Others 2,635,093.77 2,635,093.77 2,635,093.77 2,635,093.77
Total 3,926,873.08 3,926,873.08 2,750,873.08 2,750,873.08
Other notes:
32. Short-term Borrowings
(1) Category of Short-term Borrowings
Unit: RMB
Item Ending balance Beginning balance
Notes of the category for short-term loans:
(2) List of the Short-term Borrowings Overdue but not Returned
The amount of the overdue unpaid short-term borrowings at the period-end was RMBXXX, of which the significant overdue unpaid
short-term borrowings are as follows:
Unit: RMB
Entity Ending balance Interest rate Overdue time Overdue charge rate
Other notes:
33. Trading Financial Liabilities
Unit: RMB
Item Ending balance Beginning balance
Of which:
Of which:
Other notes:
34. Derivative Financial Liabilities
Unit: RMB
Item Ending balance Beginning balance
116
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Other notes:
35. Notes Payable
Unit: RMB
Category Ending balance Beginning balance
The total amount of notes payable due but unpaid was RMBXXX.
36. Accounts Payable
(1) List of Accounts Payable
Unit: RMB
Item Ending balance Beginning balance
Engineering construction expense payable 353,407,806.68 484,123,042.01
Estimated payables 2,712,921.63 32,863,907.25
Others 141,395,031.89 91,296,439.26
Total 497,515,760.20 608,283,388.52
(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
12,017,672.83 Unsettled
Division Corp., Ltd.
Shanghai Mingpeng Construction Group
5,976,705.79 Unsettled
Co., Ltd.
Shenzhen Ruihe Construction Decoration
2,753,369.98 Unsettled
Co., Ltd.
Shenzhen HONGTAO Group Co., Ltd. 2,569,572.34 Unsettled
Total 48,317,320.94
Other notes:
37. Advances from Customers
(1) List of Advances from Customers
Unit: RMB
Item Ending balance Beginning balance
Rental 1,209,185.48 2,260,847.31
Total 1,209,185.48 2,260,847.31
(2) Significant Advances from Customers Aged over 1 Year
Unit: RMB
Item Ending balance Unpaid/Un-carry-over reason
Other notes:
38. Contract Liabilities
Unit: RMB
Item Ending balance Beginning balance
House payment in advance 47,733,616.21 857,317,217.99
Property fee in advance 33,209,460.24 15,740,950.87
Other payments in advance 38,816,647.12 47,769,871.95
Total 119,759,723.57 920,828,040.81
Significant changes in the amount of carrying value and the reason in the Reporting Period
Unit: RMB
117
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Item Change in amount Reason(s)
SZPRD-Fuchang Garden The carried down qualified for revenue carried forward was carried
-840,878,470.63
Phase II (Fuhui Huayuan) forward to income from principal businesses.
SZPRD-Golden Collar’s
28,343,180.03 Sales payment collection from the project in the current period
Resort
Total -812,535,290.60
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-Golden
1 15,574,706.92 43,917,886.95 25 December 2019 96.00%
Collar’s Resort
Guangming Yutang
2 0.00 2,986,620.19 1 December 2024 1.70%
Shangfu project
SZPRD-Hupan
3 716,422.02 707,247.71 30 November 2017 96.00%
Yujing Phase II
SZPRD-Banshan
4 110,921.17 74,430.17 12 January 2022 100.00%
Yujing Phase II
SZPRD-Hupan
5 36,697.25 36,697.25 1 June 2015 88.24%
Yujing Phase I
39. Payroll Payable
(1) List of Payroll Payable
Unit: RMB
Increase for the current Decrease for the current
Item Beginning balance Ending balance
period period
I. Short-term salary 234,726,107.97 423,623,999.36 467,829,214.52 190,520,892.81
II. Post-employment
benefit-defined 1,650,684.05 35,124,716.34 34,223,858.31 2,551,542.08
contribution plans
III. Termination
2,749,600.00 2,749,600.00
benefits
Total 239,126,392.02 458,748,715.70 504,802,672.83 193,072,434.89
(2) List of Short-term Salary
Unit: RMB
Increase for the current Decrease for the
Item Beginning balance Ending balance
period current period
1. Salary, bonus, allowance,
216,273,079.86 371,317,457.31 413,685,247.77 173,905,289.40
subsidy
2. Employee welfare 1,408,479.54 530,327.31 809,484.30 1,129,322.55
3. Social insurance 71,070.35 15,509,848.67 15,281,606.04 299,312.98
Of which: Medical insurance
60,059.54 13,198,732.10 12,994,566.26 264,225.38
premiums
Work-related injury insurance
1,263.70 643,673.04 626,227.56 18,709.18
premiums
Maternity insurance 2,154.62 786,269.22 779,285.91 9,137.93
Other commercial insurances 7,592.49 881,174.31 881,526.31 7,240.49
4. Housing fund 1,279,643.31 13,741,572.37 13,742,470.35 1,278,745.33
5. Labor union budget and
11,352,966.60 8,376,367.18 8,179,570.54 11,549,763.24
employee education budget
118
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
8. Non-monetary benefits 4,340,868.31 14,148,426.52 16,130,835.52 2,358,459.31
Total 234,726,107.97 423,623,999.36 467,829,214.52 190,520,892.81
(3) List of Defined Contribution Plans
Unit: RMB
Increase for the current Decrease for the current
Item Beginning balance Ending balance
period period
1. Basic pension
145,676.75 29,593,189.67 29,245,239.63 493,626.79
insurance
2. Unemployment
4,125.03 711,810.87 700,545.89 15,390.01
insurance premiums
3. Supplementary
1,500,882.27 4,797,985.48 4,256,342.47 2,042,525.28
pension payment
Others 21,730.32 21,730.32
Total 1,650,684.05 35,124,716.34 34,223,858.31 2,551,542.08
Other notes:
40. Taxes Payable
Unit: RMB
Item Ending balance Beginning balance
VAT 14,088,568.40 15,392,042.91
Consumption tax 0.00 0.00
Enterprise income tax 32,630,161.71 57,096,046.69
Personal income tax 4,576,871.47 3,141,049.35
Urban maintenance and construction tax 1,132,969.70 1,464,551.01
Land appreciation tax 3,865,285,968.16 3,838,271,429.24
Land use tax 941,954.40 153,626.98
Property tax 5,712,733.63 600,966.66
Educational surcharge 464,449.41 707,668.15
Local educational fee 432,570.90 383,745.82
Others 133,425.21 67,220.00
Total 3,925,399,672.99 3,917,278,346.81
Other notes:
41. Other Payables
Unit: RMB
Item Ending balance Beginning balance
Interest payable 0.00 0.00
Dividends payable 227,351,128.25 12,202,676.04
Other payables 1,476,775,808.27 1,502,883,156.41
Total 1,704,126,936.52 1,515,085,832.45
(1) Interest Payable
Unit: RMB
Item Ending balance Beginning balance
Total 0.00 0.00
List of the significant overdue unpaid interest:
Unit: RMB
119
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Entity Overdue amount Overdue reason
Other notes:
(2) Dividends Payable
Unit: RMB
Item Ending balance Beginning balance
Ordinary stock dividends 227,351,128.25 12,202,676.04
Total 227,351,128.25 12,202,676.04
Other notes: including significant dividends payable unpaid for over one year, the unpaid reason shall be disclosed:
Item Amount unpaid Reason
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 339,025,828.61 316,108,932.91
Margin 19,211,060.35 13,585,641.99
Collection on behalf 4,350,525.30 3,596,458.33
Intercourse funds 814,319,067.66 855,267,729.70
Accrued expenses 237,339,978.52 224,646,116.70
Payment on behalf 14,727,817.67 19,052,869.33
Others 47,801,530.16 70,625,407.45
Total 1,476,775,808.27 1,502,883,156.41
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 Hengyu (Group) Co., Ltd. 162,000,000.00 Unsettled
Shenzhen Bay Technology Development
154,415,543.77 Unsettled
Co., Ltd.
Shenzhen Real Estate Jifa Warehousing Intercourse fund without specific payment
42,296,665.14
Co., Ltd. term
Shenzhen Toutiao Technology Co., Ltd. 12,424,072.07 Lease term not expired
Total 567,552,436.43
Other notes:
42. Held-for-sale Liabilities
Unit: RMB
Item Ending balance Beginning balance
Other notes:
120
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
43. Current Portion of Non-current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Current portion of long-term borrowings 201,663,040.96 196,645,408.45
Lease obligation matured within 1 Year 21,006,002.41 22,213,358.37
Total 222,669,043.37 218,858,766.82
Other notes:
44. Other Current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Tax to be charged off 3,392,989.52 83,991,786.83
Total 3,392,989.52 83,991,786.83
Increase/decrease of the short-term bonds payable:
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
Other notes:
45. Long-term Borrowings
(1) Category of Long-term Borrowings
Unit: RMB
Item Ending balance Beginning balance
Pledged loans 3,187,796,390.00 3,156,782,344.00
Mortgage loans 553,453,878.17
Credit loan 431,200,000.00 462,000,000.00
Total 4,172,450,268.17 3,618,782,344.00
Note to the category of long-term borrowings:
The pledged borrowings at the period-end [1] were used to develop the Lanhushidai project of Shenzhen Rongyao Real Estate
Development Co., Ltd., a subsidiary of the Company (hereinafter referred to as “Rongyao Real Estate”) with the duration from 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 [2] 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 pledged loans [3] at the period-end were used to develop the Humen Sea Bay Garden project of Dongguan Wuhe Real Estate Co.,
Ltd., a subsidiary of the Company, with the duration from 30 March 2023 to 5 August 2027. All accounts receivable of Dongguan
Wuhe Real Estate Co., Ltd. in next five years was pledged.
The mortgage loans [1] at the period-end were used to develop the Humen Sea Bay Garden project of Dongguan Wuhe Real Estate
Co., Ltd., a subsidiary of the Company, with the duration from 30 March 2023 to 5 August 2027. The land use right of Humen Sea
Bay Garden project held by Dongguan Wuhe Real Estate Co., Ltd. was pledged.
The mortgage loans [2] at the period-end were used to develop the Guangming Yutang Shangfu project of Shenzhen Guangming
Wuhe Real Estate Co., Ltd., a subsidiary of the Company, with the duration from 24 May 2023 to 25 April 2028. The land use right
of Guangming Yutang Shangfu project held by Shenzhen Guangming Wuhe Real Estate Co., Ltd. was pledged.
The mortgage loans [3] at the period-end were used to develop the Lanhushidai project of Shenzhen Rongyao Real Estate
Development Co., Ltd., a subsidiary of the Company (hereinafter referred to as “Rongyao Real Estate”) with the duration from 30
March 2023 to 30 March 2026.The land use right of Lanhushidai project held by Rongyao Real Estate was pledged and the Company
provided joint and several liability guarantee..
121
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
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
Decrease for the current
Outstanding Period-beginning Increase for the current period Period-end
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 99,694,102.14 119,208,080.55
Less: Unrecognized financing expense -15,762,599.86 -19,031,438.63
Less: Lease liabilities due within 1 year
-21,006,002.41 -22,213,358.37
(filled in with negative number)
Total 62,925,499.87 77,963,283.55
Other notes:
48. Long-term Payables
Unit: RMB
Item Ending balance Beginning balance
Total 0.00 0.00
(1) Long-term Payables Listed by Nature
Unit: RMB
Item Ending balance Beginning balance
Total 0.00 0.00
Other notes:
(2) Specific Payables
Unit: RMB
Item Beginning balance Increase for the Decrease for the Ending balance Reason for
122
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
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:
50. Provisions
Unit: RMB
Item Ending balance Beginning balance Reason for formation
Xuansheng property
Pending litigation 766,612.52 766,612.52
management fee lawsuit
Total 766,612.52 766,612.52
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
Total 0.00 0.00
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/related
balance income in changes balance
the current income in current income
the current
period the current period
period
period
Other notes:
52. Other Non-current Liabilities
Unit: RMB
Item Ending balance Beginning balance
123
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Utility specific fund 636,774.81 634,414.79
Housing principle fund 16,201,175.98 15,105,690.42
House warming deposit 6,466,131.01 7,058,030.03
Electric Equipment Maintenance fund 4,019,415.44 4,019,415.44
Deputed maintenance fund 53,418,040.46 53,798,172.96
Follow-up investment of employees for
40,000,000.00 40,000,000.00
Lanhushidai project
Others 7,510,304.23 7,393,196.15
Total 128,251,841.93 128,008,919.79
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:
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
Outstanding Period-beginning Period-end
period period
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 current
Item Beginning balance Ending balance
current period period
Other capital reserves 80,488,045.38 80,488,045.38
Total 80,488,045.38 80,488,045.38
Other notes, including a description of the increase or decrease for the current period and the reasons for the change:
56. Treasury Shares
Unit: RMB
Increase for the current Decrease for the current
Item Beginning balance Ending balance
period period
Total 0.00 0.00
Other notes, including a description of the increase or decrease for the current period and the reasons for the change:
124
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
57. Other Comprehensive Income
Unit: RMB
Amount for the current period
Less: recorded Less: recorded
in other in other
comprehensive comprehensive
Amount before Attributable
Item Beginning balance income in income in Attributable to the Ending balance
deducting income Less: Income minority
prior period prior period Company as the parent
tax for the current tax expense shareholders
and transferred and transferred after tax
period after tax
in profit or in retained
loss in the earnings in the
current period current period
I. Other
comprehensive
income that may
not be -2,742,841.65 -275,978.56 -275,978.56 -3,018,820.21
reclassified to
profit or loss
Changes in fair
value of other
equity -2,742,841.65 -275,978.56 -275,978.56 -3,018,820.21
instrument
investment\
II. Other
comprehensive
income that may
subsequently be -1,111,536.30 1,679,998.83 1,679,998.83 568,462.53
reclassified to
profit or loss
Differences
arising from
translation of
foreign
currency- -1,111,536.30 1,679,998.83 1,679,998.83 568,462.53
denominated
financial
statements
Total of other
comprehensive -3,854,377.95 1,404,020.27 1,404,020.27 -2,450,357.68
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 current
Item Beginning balance Ending balance
period period
Other notes, including a description of the increase or decrease for the current period and the reasons for the change:
59. Surplus Reserves
Unit: RMB
Increase for the current Decrease for the current
Item Beginning balance Ending balance
period period
Statutory surplus
48,521,202.68 48,521,202.68
reserves
Discretional surplus
365,403.13 365,403.13
reserves
Total 48,886,605.81 48,886,605.81
Notes, including changes and reason of change:
60. Retained Earnings
Unit: RMB
Item Current period Previous period
Beginning balance of retained profits
3,691,056,182.73 3,800,901,413.35
before adjustments
Beginning balance of retained profits after 3,691,056,182.73 3,800,901,413.35
125
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
adjustments
Add: Net profit attributable to owners of
220,903,444.63 250,802,157.71
the Company as the parent
Dividends of common shares payable 215,148,452.21
Others -1,644,822.69 -208,463,077.04
Ending retained profits 3,695,166,352.46 3,437,974,711.46
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) RMB beginning retained profits was affected by changes in combination scope arising from same control.
5) RMBXXX beginning retained earnings was affected totally by other adjustments.
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 1,838,535,192.23 1,348,203,616.26 1,972,677,481.97 1,067,980,872.62
Others 66,929,440.62 23,956,267.99 15,622,358.27 671,710.70
Total 1,905,464,632.85 1,372,159,884.25 1,988,299,840.24 1,068,652,583.32
Relevant information of revenue:
Unit: RMB
Category of contracts Segment 1 Segment 2 Total
Product categories 1,905,464,632.85 1,905,464,632.85
Of which:
Real estate 1,053,881,874.68 1,053,881,874.68
Property management 773,181,325.02 773,181,325.02
Leasing business 78,401,433.15 78,401,433.15
Classification by
1,905,464,632.85 1,905,464,632.85
operating region
Of which:
Shenzhen 1,736,158,823.32 1,736,158,823.32
Other regions 169,305,809.53 169,305,809.53
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
126
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Of which:
Total
Information about performance obligations:
On 30 June, 2023, the transaction price assigned to unfulfilled (or partially fulfilled) performance obligations was estimated to be
RMB120 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 RMB119,759,723.56 at the period-end, among which RMB62,270,248.99 was expected to be recognized in 2023,
RMB12,104,375.25 was expected to be recognized in 2024, and RMB45,385,099.32 was expected to be recognized in 2025.
Other notes:
The Company shall comply with the disclosure requirements for the real estate industry in the Self-regulatory Guidelines No. 3 for
Companies Listed on Shenzhen Stock Exchange - Industry Information Disclosure.
The top 5 accounts received with confirmed amount in the Reporting Period:
Unit: RMB
No. Project name Income balance
1 Fuchang Garden Phase II 965,944,812.30
2 Golden Collar’s Resort 66,354,012.36
3 Songhu Langyuan 781,769.51
4 Hupan Yujing Phase II 250,872.47
5 Banshan Yujing Phase II 57,027.52
62. Taxes and Surtaxes
Unit: RMB
Item Amount for the current period Amount for the previous period
Urban maintenance and construction tax 5,234,580.49 6,451,246.20
Educational surcharge 2,245,496.54 2,793,502.94
Property tax 5,879,679.55 2,296,167.11
Land use tax 1,017,014.81
Vehicle and vessel usage tax 18,361.26 14,176.80
Stamp duty 531,098.01 1,998,247.74
Land appreciation tax 28,694,726.98 378,694,384.75
Local educational fee 1,500,541.14 1,827,584.76
Other taxes 69,287.25 155,409.51
Total 45,190,786.03 394,230,719.81
Other notes:
63. Selling Expense
Unit: RMB
Item Amount for the current period Amount for the previous period
Agency fee 26,078.00 989,571.51
Consultancy and sales service charges 2,385,496.26 2,384,890.28
Advertising expenses 3,855,726.14 954,193.61
Employee remuneration 4,649,571.85 3,422,942.15
127
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Others 2,170,424.80 3,607,260.96
Total 13,087,297.05 11,358,858.51
Other notes:
64. Administrative Expense
Unit: RMB
Item Amount for the current period Amount for the previous period
Employee remuneration 109,945,612.07 107,934,307.26
Administrative office cost 14,020,387.30 13,369,249.80
Assets amortization and depreciation
13,134,121.00 12,231,294.86
expense
Litigation costs 5,611,455.50 1,823,824.81
Others 6,476,608.31 8,342,381.32
Total 149,188,184.18 143,701,058.05
Other notes:
65. Development Expense
Unit: RMB
Item Amount for the current period Amount for the previous period
Employee remuneration 1,466,686.36 2,511,310.90
Office cost 47,920.50 3,395.00
R&D material expense 1,592.92 25,050.00
Others 194,851.66 149,969.50
Total 1,711,051.44 2,689,725.40
Other notes:
66. Finance Costs
Unit: RMB
Item Amount for the current period Amount for the previous period
Finance costs 31,827,441.32 36,281,087.17
Less: Interest income (filled in with
-7,930,755.87 -9,179,453.97
negative number)
Foreign exchange gains or losses -523,791.38 -1,610,359.72
Others 819,510.87 2,601,004.28
Total 24,192,404.94 28,092,277.76
Other notes:
67. Other Income
Unit: RMB
Sources Amount for the current period Amount for the previous period
Government grants related to income 950,093.18 3,006,828.76
Return of auxiliary expense for individual
390,379.71 240,710.82
income tax withheld
Additional deduction of VAT 2,741,411.22 3,186,192.45
Rebate of VAT 738,782.96 372,713.96
Tax and fee relief 812,133.08
128
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Others 37,288.76
Total 5,670,088.91 6,806,445.99
68. Investment Income
Unit: RMB
Item Amount for the current period Amount for the previous period
Long-term equity investment income
1,857,388.32 859,534.38
accounted by equity method
Interest income earned on other
investment in debt obligations during the 87,379.67
holding period
Total 1,857,388.32 946,914.05
Other notes:
69. Net Gain on Exposure Hedges
Unit: RMB
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
Other notes:
71. Credit Impairment Loss
Unit: RMB
Item Amount for the current period Amount for the previous period
Bad debt loss -13,610,779.58 -14,462,076.54
Total -13,610,779.58 -14,462,076.54
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
2,045.93 3,302.47
provision for contract performance costs
Total 2,045.93 3,302.47
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 115,810.85 -41,452.49
Gains on disposal of other assets 58,568.84
74. Non-operating Income
Unit: RMB
129
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Amount recorded in the
Amount for the previous
Item Amount for the current period current non-recurring profit or
period
loss
Government grants 17,500.00
Gains on damage and scrap of
5,568.23 5,568.23
non-current assets
Confiscated income 652,311.27 916,961.90 652,311.27
Payments unable to clear 56,282.77 874,963.88 56,282.77
Others -919,060.30 736,642.68 -919,060.30
Total -204,898.03 2,546,068.46 -204,898.08
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
the supply of socially necessary
No No 17,500.00 revenue
products, or the function of
price control
Other notes:
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 19,300.00
Losses from damage and scrap
17,136.15 101,068.85 17,136.15
of non-current assets
Penalty and fine for delaying
78,886.53 1,050,960.64 78,886.53
payment
Others 261,695.71 246,257.35 261,695.71
Total 357,718.39 1,417,586.84 357,718.39
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 48,971,626.96 173,064,812.19
Deferred income tax expense 29,847,648.80 -80,409,607.93
Total 78,819,275.76 92,655,204.26
(2) Adjustment Process of Accounting Profit and Income Tax Expense
Unit: RMB
Item Amount for the current period
Total profit 293,465,531.81
Current income tax expense accounted at statutory/applicable tax rate 73,366,382.95
130
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Influence of applying different tax rates by subsidiaries -2,534,219.08
Influence of income tax before adjustment 5,804,661.91
Influence of non-deductible costs, expenses and losses 392,153.23
Effect of deductible temporary differences or deductible losses on deferred income
1,790,296.75
tax assets not recognized in the current period
Income tax expense 78,819,275.76
Other notes:
77. Other Comprehensive Income
Refer to Note 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 49,072,300.25 376,141,428.59
Interest income 7,930,755.87 8,168,660.77
Net margins, security deposit and various
45,287,205.39 47,722,607.40
special funds received
Other small receivables 24,479,612.17 29,754,454.20
Total 126,769,873.68 461,787,150.96
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 30,693,136.34 24,801,083.99
Paying selling expense in cash 8,054,091.33 9,594,684.62
Payment of utility expense and various
49,083,846.80 70,071,543.78
collecting payments on behalf of others
Other small payments 34,041,223.54 1,997,036.36
Amount of newly limited funds 5,455,416.01
Total 127,327,714.02 106,464,348.75
Notes:
(3) Cash Generated from Other Investing Activities
Unit: RMB
Item Amount for the current period Amount for the previous period
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
131
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
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
Payment for lease liabilities 15,224,062.82 12,142,998.09
Total 15,224,062.82 12,142,998.09
Notes:
79. Supplemental Information for Cash Flow Statement
(1) Supplemental Information for Cash Flow Statement
Unit: RMB
Amount during the current
Supplemental information Previous period
period
1. Reconciliation of net profit to net cash flows generated from operating
activities:
Net profit 214,646,256.05 241,301,028.23
Add: Provision for impairment of assets 13,608,733.65 14,458,774.07
Depreciation of fixed assets, oil-gas assets, and productive biological
30,375,573.61 46,813,436.13
assets
Depreciation of right-of-use assets 10,342,761.89 11,367,505.45
Amortization of intangible assets 323,300.59 390,983.97
Amortization of long-term prepaid expenses 4,357,979.80 3,085,317.14
Losses from disposal of fixed assets, intangible assets and other long-
-174,379.69 41,452.49
lived assets (gains represented by “-")
Losses from scrap of fixed assets (gains represented by “-") 17,136.15 101,068.85
Losses from changes in fair value (gains represented by “-")
Finance costs (gains represented by “-") 24,192,404.94 28,092,277.76
Investment loss (gains represented by “-") -5,385,588.91 -6,806,445.99
Decrease in deferred income tax assets (gains represented by “-") 29,858,199.73 -80,319,053.48
Increase in deferred income tax liabilities (decrease represented by “-") -67,809.67 -68,469.92
Decrease in inventory (gains represented by “-") 127,259,375.62 -761,934,290.05
Decrease in accounts receivable generated from operating activities
-13,839,646.61 -44,432,489.46
(gains represented by “-")
Increase in accounts payable used in operating activities (decrease
-1,015,535,955.30 151,914,673.72
represented by “-")
Others
Net cash flows from operating activities -580,021,658.15 -395,994,231.09
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 1,376,665,482.70 1,473,196,246.07
Less: Opening balance of cash 1,509,693,857.48 1,963,988,756.69
Add: Closing balance of cash equivalents
132
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents -133,028,374.78 -490,792,510.62
(2) Net Cash Paid for Acquisition of Subsidiaries
Unit: RMB
Amount
Of which:
Of which:
Add: Cash or cash equivalents paid in the current period for
1,644,822.69
business combinations incurred in prior periods
Of which:
Shenzhen Property Management Co., Ltd. 1,644,822.69
Net cash paid for acquisition of subsidiaries 1,644,822.69
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 1,376,665,482.70 1,509,693,857.48
Of which: Cash on hand 42,693.32 43,833.00
Bank deposits on demand 1,373,278,510.90 1,506,148,081.54
Other monetary assets on demand 3,344,278.48 3,501,942.94
III. Ending balance of cash and cash
1,376,665,482.70 1,509,693,857.48
equivalents
Other notes:
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 15,539,145.06 Note 1 - Note 9
Land use right of Fumin New Village,
542,507,314.43 Note 10
Futian District
Total 558,046,459.49
Other notes:
[Note 1]: In terms of monetary assets with restricted right to use at the period-end, there was RMB2,200,000.00 as the banker's letter
of margin for Shenzhen Shenfubao Property Development Co., Ltd., a subsidiary of the Company.
133
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
[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 RMB1,132,452.99
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 RMB5,270,833.33 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 RMB90,000.00 of blocked fund in a
dispute over a house purchase and sales contract for Shenzhen Property Group Xuzhou Dapeng Real Estate Development Co., Ltd., a
subsidiary of the Company.
[Note 7]: In terms of monetary assets with restricted right to use at the period-end, there was RMB129,315.23 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 an deposit for POS of RMB1,500.00 in
the Shandong Shenguomao Real Estate Management Co., Ltd.
[Note 9]: In terms of monetary assets with restricted right to use at the period-end, there was RMB3,255,416.01 of regulated pre-sale
proceeds for the real estate projects of Shenzhen Guangming Wuhe Real Estate Co., Ltd., a subsidiary of the Company.
[Note 10]: Due to the needs of daily business activities, the Company applied for a loan from Bank of Communications Co., Ltd.
Shenzhen Branch and mortgaged the land use right of Fumin New Village, Futian District. The loan has a duration from 27
November 2020 to 27 November 2023 and applies floating interest rates.
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 65,099,169.94
Of which: USD 120,000.00 7.2208 866,496.00
EUR
HKD 62,829,561.91 0.9218 57,916,290.17
VND 20,574,539,964.00 0.000307 6,316,383.77
Accounts prepaid 9,221.19 8,500.09
Of which: HKD 9,221.19 0.9218 8,500.09
Other payables 3,506,725.97 3,232,500.00
Of which: HKD 3,506,725.97 0.9218 3,232,500.00
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
134
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
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
Financial assistance for high-
120,000.00 Other income 120,000.00
tech enterprise training
Waste classification subsidy 156,000.00 Other income 156,000.00
Employment subsidy 99,950.19 Other income 99,950.19
The subsidy for stabilizing
34,254.40 Other income 34,254.40
employment
Other subsidies 89,888.59 Other income 89,888.59
Bonus for "Beautiful Home" 450,000.00 Other income 450,000.00
Total 950,093.18 950,093.18
(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
135
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
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:
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
Recognition Income from the Income of the Net profits of the
the period-begin
Combined Proportion of Combination basis of period-begin to the acquiree during acquiree during
Basis to the
party the equity date combination combination date of the period of the period of
combination date
date the acquiree comparison comparison
of the acquiree
Other notes:
136
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
(2) Combination Cost
Unit: RMB
Combination cost
--Cash
--Carrying value of
non-cash assets
--Carrying value of
debt issued or assumed
--Denomination value
of equity securities
issued
--Contingent
consideration
Contingent liabilities and changes thereof:
Other notes:
(3) The Carrying Value of Assets and Liabilities of the Combined Party on the Combination Date
Unit: RMB
Combination date End of the previous period
Assets:
Monetary capital
Accounts receivable
Inventories
Fixed assets
Intangible assets
Liabilities:
Borrowings
Accounts payable
Net assets
Less: non-controlling interests
Net assets acquired
Contingent liabilities of the combined party undertaken in the business combination:
Other notes:
3. Counter Purchase
Basic information of trading, the basis of transactions constitute counter purchase, the retain assets , liabilities of the listed companies
whether constituted a business and its basis, the determination of the combination costs, the amount and calculation of adjusted rights
and interests in accordance with the equity transaction process:
4. Disposal of Subsidiary
Whether there 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
137
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
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:
Zhanjiang Branch of Shenzhen Properties & Resources Development (Group) Ltd. was deregistered in the current period.
6. Other
IX. Equity in Other Entities
1. Equity in Subsidiaries
(1) Compositions of the Group
Main Shareholding percentage
Place of (%) Way of
Name of subsidiaries operating Business nature
registration gaining
place Directly Indirectly
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
Chongqing Chongqing Real estate 100.00% Set-up
Management Co., Ltd.
Chongqing Aobo Elevator Co., Ltd. Chongqing Chongqing Service industry 100.00% Set-up
Chongqing Tianque Elevator Technology
Shenzhen Shenzhen Service industry 100.00% Set-up
Co., Ltd.
Shenzhen Guoguan Electromechanical
Shenzhen Shenzhen Service industry 100.00% Set-up
Device 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
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
Chief Link Properties Co., Ltd. Hong Hong Real estate 70.00% Set-up
138
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
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 Guomao Property Development Co., Shenzhen Shenzhen Real estate 65.00% Set-up
Ltd.
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
Shenzhen Jinghengtai Real Estate combination
Shenzhen Shenzhen Real estate 100.00%
Development Co., Ltd. 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
Shenzhen Jiayuan Property Management Co., Shenzhen Shenzhen Real estate 54.00% Business
139
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Ltd. combination
under the
same control
Business
Shenzhen Helinhua Construction combination
Shenzhen Shenzhen Real estate 90.00%
Management 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
combination
Shenzhen Kangping Industrial Co., Ltd. Shenzhen Shenzhen Retail trade 90.00%
under the
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
Xiamen 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. Dongguan 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
Shenzhen Shenfubao Property Development Shenzhen Shenzhen Real estate 100.00% Business
140
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Co., Ltd. combination
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
Business
Shenzhen Free Trade Zone Security Service combination
Shenzhen Shenzhen Real estate 100.00%
Co., Ltd. under the
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
Shenzhen 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% -6,632,248.29 -2,083,026.51
Development Co., Ltd.
Yangzhou Wuhe Real Estate Co., Ltd. 33.00% -658,432.42 14,920,336.76
Yangzhou Shouxihu Jingyue Property
49.00% 670,563.20 7,168,978.90
Development Co., Ltd.
Shenzhen Guomao Shenlv Garden
10.00% 274,411.75 3,911,252.10
Co., Ltd.
Holding proportion of non-controlling interests in subsidiary different from voting proportion:
Other notes:
141
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
(3) The Main Financial Information of Significant Not Wholly-owned Subsidiary
Unit: RMB
Ending balance Beginning balance
Name of
subsidiaries Non-current Current Non-current Non-current Current Non-current
Current assets Total assets Total liabilities Current assets Total assets Total liabilities
assets liabilities liabilities assets liabilities liabilities
Shenzhen
Rongyao
Real Estate 5,745,977,117.37 155,181,308.75 5,901,158,426.12 237,999,312.86 5,567,005,771.06 5,805,005,083.92 5,566,299,658.85 148,957,829.54 5,715,257,488.39 237,683,829.61 5,360,025,967.25 5,597,709,796.86
Development
Co., Ltd.
Yangzhou
Wuhe Real
1,099,431,037.38 1,648,461.14 1,101,079,498.52 1,055,866,356.82 1,055,866,356.82 1,003,117,568.27 923,562.28 1,004,041,130.55 956,832,739.09 956,832,739.09
Estate Co.,
Ltd.
Yangzhou
Shouxihu
Jingyue
20,731,894.92 924,279.06 21,656,173.98 6,847,326.21 178,278.59 7,025,604.80 20,620,873.64 957,140.53 21,578,014.17 8,192,080.81 123,860.50 8,315,941.31
Property
Development
Co., Ltd.
Shenzhen
Guomao
Shenlv 38,909,502.76 667,055.47 39,576,558.23 29,390,561.94 213,213.97 29,603,775.91 37,872,874.87 687,238.86 38,560,113.73 31,146,187.72 185,261.19 31,331,448.91
Garden Co.,
Ltd.
Unit: RMB
Amount for the current period Amount for the previous period
Name of Total Total
subsidiaries Cash flows from Cash flows from
Operating Revenue Net profit comprehensive Operating Revenue Net profit comprehensive
operating activities operating activities
income income
Shenzhen Rongyao
Real Estate
-21,394,349.33 -21,394,349.33 -132,065,318.90 -23,400,642.21 -23,400,642.21 -33,317,053.14
Development Co.,
Ltd.
Yangzhou Wuhe
Real Estate Co., -1,995,249.76 -1,995,249.76 -48,773,537.38 -473,135.33 -473,135.33 97,048.38
Ltd.
Yangzhou
Shouxihu Jingyue
Property 20,845,157.30 1,368,496.32 1,368,496.32 -186,738.66 18,564,214.66 497,456.52 497,456.52 -2,196,922.04
Development Co.,
Ltd.
Shenzhen Guomao
Shenlv Garden 10,211,925.25 2,744,117.50 2,744,117.50 2,459,431.35 7,774,594.39 -54,237.49 -54,237.49 -676,213.24
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:
142
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
2. The Transaction of the Company with Its Owner's Equity Share Changing but the Company Still
Controls the Subsidiary
(1) Note to the Owner's Equity Share Changed in Subsidiary
(2) The Transaction’s Influence on the Equity of Non-controlling Interests and the Owner's Equity Attributable to the
Company as the Parent
Unit: RMB
Purchase cost/disposal consideration
-Cash
-Fair value of non-cash assets
Total purchase cost/disposal consideration
Less: Share of net assets of subsidiaries based on percentage of
equity acquired/disposed of
Difference
Of which: Adjusting capital reserve
Adjusting surplus reserve
Adjusting retained profits
Other notes:
3. Equity in Joint Ventures or Associated Enterprises
(1) Significant Joint Ventures or Associated Enterprises
Shareholding percentage Accounting
(%) treatment of the
Main
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 10,055,352.57 59,891,252.36 6,110,801.95 58,848,700.91
Of which: Cash and
9,263,658.15 38,883,807.33 4,923,260.32 37,841,255.88
cash equivalents
Non-current assets 85,788,615.62 42,049.96 86,342,531.70 46,757.57
Total assets 95,843,968.19 59,933,302.32 92,453,333.65 58,895,458.48
Current liabilities 2,937,049.65 29,200,886.66 2,992,163.07 28,404,537.12
143
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Non-current liabilities 16,490,720.38 16,415,016.74
Total liabilities 2,937,049.65 45,691,607.04 2,992,163.07 44,819,553.86
Equity of non-
controlling interests
Equity attributable to
shareholders of the 92,906,918.54 14,241,695.28 89,461,170.58 14,075,904.62
Company as the parent
Net assets shares
calculated at the 46,453,459.27 7,120,847.64 44,730,585.29 7,037,952.31
shareholding proportion
Adjusted items
- Goodwill
--Unrealized profit of
intra-company
transaction
--Other
Carrying value of
equity investment to 46,453,459.27 7,120,847.64 44,730,585.29 7,037,952.31
joint ventures
Fair values of equity
investments of joint
ventures with quoted
prices
Operating Revenue 6,690,430.68 8,731,790.54 4,516,455.33 8,483,323.41
Financial expenses -7,666.55 43,267.67 -5,293.01 41,255.86
Income tax expense 1,154,005.86 55,263.55 523,182.56 54,163.40
Net profit 3,445,747.96 165,790.66 1,569,547.71 149,521.04
Net profit from
discontinued operations
Other comprehensive
income
Total comprehensive
3,445,747.96 165,790.66 1,569,547.71 149,521.04
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 267,993,271.29 235,089,462.02
Non-current assets 6,672,968.51 3,014,735.77
Total assets 274,666,239.80 238,104,197.79
Current liabilities 112,739,886.93 77,303,723.18
Non-current liabilities 34,777.90 24,777.90
Total liabilities 112,774,664.83 77,333,501.08
Equity of non-controlling interests
Equity attributable to shareholders of the 161,891,574.97 160,770,696.71
144
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Company as the parent
Net assets shares calculated at the
16,189,157.50 16,077,069.67
shareholding proportion
Adjusted items
- Goodwill
--Unrealized profit of intra-company
transaction
--Other
Carrying value of investment to
16,189,157.50 16,077,069.67
associated enterprises
Fair value of equity investments in
associated enterprises with publicly
quoted prices
Operating Revenue 48,983,120.89
Net profit 516,190.10
Net profit from discontinued operations
Other comprehensive income
Total comprehensive income 516,190.10
Dividends received from the associates in
63,120.00
the current period
Other notes:
(4) Summary Financial Information of Insignificant Joint Ventures or Associated Enterprises
Unit: RMB
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:
(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
Name Main operating Place of Business nature Proportion/Share portion
145
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
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. Others
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) 30 June 2023
Financial assets Financial assets at fair value Financial assets measured at
Financial asset project measured at the through profit or loss for the fair value through other Total
amortized cost current period comprehensive income
Monetary assets 1,392,204,627.76 1,392,204,627.76
Notes receivable
Accounts receivable 416,925,839.15 416,925,839.15
Other receivables 624,876,343.49 624,876,343.49
Long-term receivables 21,920,095.92 21,920,095.92
Other equity investments 635,355.65 635,355.65
(2) 31 December 2022
Financial assets Financial assets at fair value
Financial assets at fair value
Item measured at and changes included in other Total
through profit or loss
amortized cost comprehensive income
Monetary capital 1,517,528,893.83 1,517,528,893.83
Notes receivable
Accounts receivable 419,933,915.30 419,933,915.30
146
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Financial assets Financial assets at fair value
Financial assets at fair value
Item measured at and changes included in other Total
through profit or loss
amortized cost comprehensive income
Other receivables 639,903,523.33 639,903,523.33
Long-term receivables 22,651,454.07 22,651,454.07
Other equity instrument
887,838.64 887,838.64
investments
2. The carrying value of financial liabilities on the balance sheet date
(1) 30 June 2023
Financial liabilities at fair Other financial
Item Total
value through profit or loss liabilities
497,515,760.20 497,515,760.20
Accounts payable
1,704,126,936.52 1,704,126,936.52
Other payables
201,663,040.96 201,663,040.96
Current portion of non-current liabilities
4,172,450,268.17 4,172,450,268.17
Long-term borrowings
(2) 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
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
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.
147
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
(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.
Due to the Company merely trades with the authorized third party with good credit, the guarantee is not required. Credit risk
concentration is managed in accordance with the customers. As at 30 June 2023, there were certain credit concentration risks in the
Company, and 43.64% of the accounts receivable of the Company (54.09% on 31 December 2022) came from the top 5 customers by
balance. The Company hasn’t held any guarantee or other credit enhancement for balance of accounts receivable.
The maximum credit risk exposure the Company undertook shall be the carrying value of each financial asset on balance sheet.
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 More than three
Carrying value Within 1 year 1-3 years
contract amount years
Banking borrowings 4,172,450,268.17 4,537,732,044.74 200,674,442.04 3,641,854,238.12 695,203,364.58
Accounts payable 497,515,760.20 497,515,760.20 497,515,760.20
Other payables 1,704,126,936.52 1,704,126,936.52 1,691,924,260.48 12,202,676.04
Other non-current
liabilities due within 201,663,040.96 201,663,040.96 201,663,040.96
1 year
Total 6,575,756,005.85 6,941,037,782.42 2,591,777,503.68 3,641,854,238.12 707,406,040.62
(Continued)
Opening balance
Item
Undiscounted More than three
Carrying value Within 1 year 1-3 years
contract amount years
Banking borrowings 3,618,782,344.00 3,998,835,011.38 190,669,039.72 3,648,297,102.30 159,868,869.36
148
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
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
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
determine the proportion between the financial instruments with fixed interest rate and those with floating interest rate in
combination with market environment, and maintain an appropriate portfolio of financial instruments through regular review and
monitoring. The interest rate risk of cash flows facing the Company is mainly related to the bank loans calculated by floating interest
rate of the Company.
As at 30 June 2023, under the assumption of other fixed variables with 50 basis points changed in interest rate, the bank loan of
RMB4,368,583,592.17 (RMB3,809,915,668.00 on 31 December 2022) calculated at floating rate would not result in significant
influence on total profit and shareholders’ equity of the Company.
2. Foreign exchange risk
Foreign exchange risk refers to the risk that may lead to the changes of fair value of financial instruments or future cash flows due to
fluctuation in exchange rate. The risk of changes of exchange rate facing the Company is mainly related to foreign currency
monetary assets and liabilities of the Company. The Company operates in mainland China, and the main activities are recorded by
RMB. Thus, the foreign exchange market risk undertaken is insignificant for the Company.
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
635,355.65 635,355.65
investment
The total amount of assets
consistently measured at fair 635,355.65 635,355.65
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 June 2023.
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
149
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
5. Continuous and Non-continuous Level 3 Fair Value Measurement Items, Information On The
Adjustment Between The Opening and Closing Carrying Value, and Sensitivity Analysis of Unobservable
Parameters
6. Explain the Reason for Conversion and the Governing Policy when the Conversion Happens if
Conversion Happens among Consistent Fair Value Measurement Items at Different Levels
7. Changes in the Valuation Technique in the Current Period and the Reason for Such Changes
8. The Fair Value of Financial Assets and Financial Liabilities not Measured at Fair Value
9. Others
XII. Related Party and Related-party Transactions
1. Information Related to the Company as the Parent of the Company
Proportion of
Proportion of share
voting rights
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 (%)
Shenzhen Limited liability
RMB31,859
Investment Shenzhen company (solely- 56.96% 56.96%
million
Holdings Co., Ltd. owned by the state)
Notes: Information on the Company as the parent
(1) The parent company of the Company is Shenzhen Investment Holdings Co., Ltd. (hereinafter referred to as “SIHC”), a newly-
established and organized state-owned capital investment company based on the original three state-owned assets management
companies in October 2004, and its main function is to manage the partial municipal state-owned companies according to the
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:
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
150
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
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., Ltd. Subsidiary of the Company as the parent of the Company
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 where Subsidiary of the Company as the parent of the Company
the context otherwise requires
GUOREN PROPERTY AND CASUALTY INSURANCE CO.,
Subsidiary of the Company as the parent of the Company
LTD.
Shenzhen Branch of GUOREN PROPERTY AND CASUALTY
Parent company’s sub-subsidiary
INSURANCE CO., LTD.
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 Research Wholly-owned subsidiary of the Company as the parent of the
Co., Ltd. Company
Shenzhen Water Planning and Design Institute Co., Ltd. Subsidiary of the Company as the parent of the Company
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
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
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
Shenyue United Investment Co., Ltd. Wholly-owned sub-subsidiary of the Company as the parent of
151
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
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 Shenzhen Wholly-owned sub-subsidiary of the Company as the parent of
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
Research Institute of Tsinghua University in Shenzhen Parent company’s subsidiary
Wholly-owned sub-subsidiary of the Company as the parent of
Shenzhen Talent Recruitment International Co., Ltd.
the Company
Wholly-owned subsidiary of the Company as the parent of the
Shenzhen People's Congress Cadre Training Center
Company
Wholly-owned sub-subsidiary of the Company as the parent of
Shenzhen Rule of Law Training Center
the Company
Shenzhen South Certification Co., Ltd. Parent company's sub-subsidiary
Shenzhen Properties Group (SPG) Longgang Development Co.,
Parent company's sub-subsidiary
Ltd.
Shenzhen Eternal Asia Deep Supply Chain Management Co., Ltd. Parent company's sub-subsidiary
Shenzhen Petrel Hotel Co., Ltd. Parent company's sub-subsidiary
Wholly-owned sub-subsidiary of the Company as the parent of
Shenzhen Cultural Business Development Co., Ltd.
the Company
Shenzhen Construction Development (Group) Company Subsidiary of the Company as the parent of the Company
China Kunpeng Industry Source Innovation Center (Shenzhen) Wholly-owned sub-subsidiary of the Company as the parent of
Co., Ltd. the Company
Wholly-owned sub-subsidiary of the Company as the parent of
Shenzhen Special Zone Literature Magazine Co., Ltd.
the Company
Shenzhen Investment Holdings Development Co., Ltd. Parent company's sub-subsidiary
Wholly-owned sub-subsidiary of the Company as the parent of
Shenzhen Transportation Station Development Co., Ltd.
the Company
Shenzhen High-tech Invest and Venture Capital Co., Ltd. Parent company's sub-subsidiary
Shenzhen Xingye Logistics Co., Ltd. Parent company's sub-subsidiary
Wholly-owned sub-subsidiary of the Company as the parent of
Shenzhen Investment Building Hotel Co., Ltd.
the Company
Shantou Huafeng Real Estate Development Co., Ltd. Parent company's sub-subsidiary
Shantou Hualin Real Estate Development Co., Ltd. Parent company's sub-subsidiary
152
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Shantou Branch of Shenzhen Special Economic Zone Real Estate
Parent company's sub-subsidiary
& Properties (Group) Co., Ltd.
Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd. Parent company's sub-subsidiary
Other notes:
5. List of Related-party Transactions
(1) Information on Acquisition of Goods and Reception of Labor Service
Information on acquisition of goods and reception of labor service
Unit: RMB
Content of the
Amount for the The approval trade Whether exceed Amount for the
Related parties related-party
current period credit trade credit or not previous period
transaction
Shenzhen Bay
Technology Management
37,673,707.61 81,600,000.00 No 43,219,580.55
Development Co., service fee
Ltd.
Shenzhen General
Institute of Project
Architectural Design architectural 2,809,568.52
and Research Co., design service
Ltd.
Shenzhen Branch of
GUOREN
PROPERTY AND
Insurance 1,647,215.68 2,582,000.00 No 909,945.52
CASUALTY
INSURANCE CO.,
LTD.
Shenzhen Shendan
Credit Enhancement
Guarantee fee 1,061,950.00
Financing Guarantee
Co., Ltd.
Shenzhen Guarantee
Guarantee fee 13,656.60
Group Co., Ltd.
Shenzhen Shenfubao
Catering service 71,780.00 26,911.00
(Group) Co., Ltd.
Shenzhen Special
Economic Zone
Management
Real Estate & 1,262,625.00
service fee
Properties (Group)
Co., Ltd.
Shenzhen Foreign
Outsourcing
Service Group Co., -521,707.00 2,650,014.74
service charges
Ltd.
Shenzhen
Apparel
Meibainian Garment 2,241.00
procurement
Co., Ltd.
Shenzhen Water
Consultant service
Planning and Design 53,320.00
expense
Institute Co., Ltd.
Shenzhen SDG Property service
107,804.26 29,165.85
Service Co., Ltd. fee
Shenzhen Talent
Recruitment Recruitment
51,686.00
International Co., service fee
Ltd.
Shenzhen People's Training service
1,780.00 378,811.00
Congress Cadre fee
153
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Training Center
Shenzhen Rule of Training service
2,070.00
Law Training Center fee
Shenzhen South
Consultant service
Certification Co., 24,528.30
expense
Ltd.
Shenzhen Properties
Group (SPG)
Management
Longgang 1,088,750.00 1,033,370.00
service fee
Development Co.,
Ltd.
Shenzhen Eternal
Asia Deep Supply Beverage
41,916.00 29,940.00
Chain Management procurement
Co., Ltd.
Shenzhen Infinova
Intelligent
Renyong
engineering 358,900.00
Information Co.,
expense
Ltd.
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
Shenzhen Branch of GUOREN PROPERTY Property service
170,719.10
AND CASUALTY INSURANCE CO., LTD. fee
Project payment
Hebei Shenbao Investment Development
for water and 23,027,002.91 6,583,247.61
Co., Ltd.
electricity
Hebei Shenbao Investment Development Property service
7,099,846.48 4,607,506.85
Co., Ltd. fee
Property service
Shenyue United Investment Co., Ltd. 406,380.98 241,740.58
fee
Property service
Shenzhen Guarantee Group Co., Ltd. 2,084,729.13
fee
Shenzhen Hi-tech Zone Development Property service
1,404,545.54 875,587.86
Construction Co., Ltd. fee
Shenzhen Convention & Exhibition Center Property service
2,753,262.17 1,884,845.11
Management Co., Ltd. fee
ShenZhen Special Economic Zone Real
Estate & Properties (Group) Co., Ltd. and its Property service
16,981.15 1,326,301.15
consolidated subsidiaries, except where the fee
context otherwise requires
Property service
Shenzhen Total Logistics Service Co., Ltd. 2,986,212.81 1,530,379.26
fee
Shenzhen Shenzhen Hong Kong Science and
Property service
Technology Innovation Cooperation Zone 531,066.72 516,023.58
fee
Development Co., Ltd.
Shenzhen Large Industrial Zone (Shenzhen Project payment
Export Processing Zone) Development for water and 232,110.15 1,359,633.03
Management Group Co., Ltd. electricity
Shenzhen Large Industrial Zone (Shenzhen
Property service
Export Processing Zone) Development 37,938.18 36,227.22
fee
Management Group Co., Ltd.
Project payment
Shenzhen Fubao Industrial Park Operation
for water and 4,954.72 87,654.97
Co., Ltd.
electricity
154
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Shenzhen Fubao Industrial Park Operation Property service
36,566.00 41,148.39
Co., Ltd. fee
Project payment
Shenzhen Environmental Protection
for water and 90,016.79 41,030.00
Technology Group Co., Ltd.
electricity
Shenzhen Environmental Protection Property service
3,031,960.52 2,642,172.56
Technology Group Co., Ltd. fee
Project payment
Shenzhen Shenfubao (Group) Tianjin
for water and 46,550.75
Industrial Development Co., Ltd.
electricity
Shenzhen Shenfubao (Group) Tianjin Property service
800,000.00 3,529,946.35
Investment Development Co., Ltd. fee
Project payment
Shenzhen Shenfubao (Group) Co., Ltd. for water and 2,538,287.16 1,064,220.19
electricity
Property service
Shenzhen Shenfubao (Group) Co., Ltd. 1,626,536.11 2,957,378.73
fee
Project payment
Shenzhen Shenfubao Eastern Investment
for water and 53,761.47
Development Co., Ltd.
electricity
Shenzhen Shenfubao Eastern Investment Property service
78,872.95 38,550.76
Development Co., Ltd. fee
Shenzhen Shantou Special Cooperation Zone
Property service
Branch of Shenzhen Water Planning and 11,025.00 11,025.00
fee
Design Institute Co., Ltd.
Shenzhen Sports Center Operation Property service
2,224,191.34
Management Co., Ltd. fee
Project payment
Shenzhen Investment Holdings Co., Ltd. for water and 352,220.28
electricity
Property service
Shenzhen Investment Holdings Co., Ltd. 3,160,290.91 7,169,148.87
fee
Shenzhen Bay Area International Hotel Co., Property service
5,408,353.56 14,100,000.00
Ltd. fee
Shenzhen Bay Wanli Hotel Branch of
Property service
Shenzhen Wuzhou Hotel Management Co., 184,818.24
fee
Ltd.
Shenzhen Bay Wanyi Hotel Branch of
Property service
Shenzhen Wuzhou Hotel Management Co., 117,789.97
fee
Ltd.
Property service
Shenzhen SME Venture Capital Co., Ltd. 654,516.23
fee
Shenzhen Bay (Baoding) Innovation Property service
284,223.66 163,100.40
Development Co., Ltd. fee
Shenzhen Bay Technology Development Co., Property service
33,767,155.69 19,066,931.69
Ltd. fee
Shenzhen Bay Area Urban Construction and Property service
1,113,311.43 1,323,523.65
Development Co., Ltd. fee
Shenzhen Xiangmihu International Exchange
Project payment 699,857.70
Center Development Co., Ltd.
Project payment
Shenzhen Xiangmihu International Exchange
for water and 3,355,528.67 1,211,630.16
Center Development Co., Ltd.
electricity
Property service
Shenzhen Infinova Limited 207,342.68 117,241.67
fee
Shenzhen Infinova Smart Park Technology Software service
143,838.00
Co., Ltd. expense
155
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
China Shenzhen Foreign Trade (Group) Property service
1,337,989.45
Corp. Ltd. fee
China Shenzhen Foreign Trade (Group) Supervision
332,075.47
Corp. Ltd. service fee
Shenzhen Tsinghua University Research Property service
497,261.99 508,363.77
Institute fee
Property service
Shenzhen Xingye Logistics Co., Ltd. 5,504.59
fee
Shenzhen Investment Building Hotel Co., Supervision
35,377.36
Ltd. service fee
China Kunpeng Industry Source Innovation Property service
687,677.12 209,433.96
Center (Shenzhen) Co., Ltd. fee
Shenzhen Special Zone Literature Magazine Property service
25,692.48 24,826.42
Co., Ltd. fee
Shenzhen Investment Holdings Development Property service
56,628.61 46,157.46
Co., Ltd. fee
Shenzhen Cultural Business Development Property service
187,580.44 215,394.13
Co., Ltd. fee
Shenzhen Talent Recruitment International Property service
186,707.86 167,823.58
Co., Ltd. fee
Shenzhen Construction Development Property service
85,617.92 85,786.57
(Group) Company fee
Property service
Shenzhen South Certification Co., Ltd. 30,931.60 30,875.00
fee
Shenzhen High-tech Invest and Venture Property service
279,021.13
Capital Co., Ltd. fee
Shantou Huafeng Real Estate Development Property service
1,167,500.69 1,200,494.18
Co., Ltd. fee
Shantou Hualin Real Estate Development Property service
1,761.75
Co., Ltd. fee
Shantou Branch of Shenzhen Special
Property service
Economic Zone Real Estate & Properties 219.45
fee
(Group) Co., Ltd.
Property service
Shenzhen Petrel Hotel Co., Ltd. 150,943.40 169,811.35
fee
Guangdong Jianbang Group (Huiyang) Property service
102,532.66
Industrial Co., Ltd. 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
entrustee/ Type Start date Due date
entruster/contractee basis this current
contractor
period
ShenZhen
Shenzhen Shentou
Properties &
Property Investment Market
Resources 6 November 2019 5 November 2025 30,678,719.66
Development Co., properties pricing
Development
Ltd.
(Group) Ltd.
Shenzhen
Shenzhen Shenfubao
Market
Shenfubao (Group) Hydropower Property 1 January 2023 31 December 2023 1,191,399.36
pricing
Co., Ltd. Municipal
Service Co., Ltd.
Notes:
156
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Lists of entrust/contractee
Unit: RMB
Charge
Name of the
Name of the recognized in
entrustee/ Type Start date Due date Pricing basis
entruster/contractee this current
contractor
period
Notes:
(3) Information on Related-party Lease
The Company was lessor:
Unit: RMB
The lease income confirmed The lease income confirmed
Name of lessee Category of leased assets
in the current period in the previous period
Shenzhen Bay Wanli Hotel
Branch of Shenzhen Wuzhou Investment properties 906,136.48 957,280.87
Hotel Management Co., Ltd.
Shenzhen Bay Wanyi Hotel
Branch of Shenzhen Wuzhou Investment properties 656,167.79 693,203.39
Hotel Management Co., Ltd.
The Company was lessee:
Unit: RMB
Variable lease
Rental expense of payments that are
simplified short-term not covered in the Interest expense on Added right-of-use
Rent payable
leases and low-value asset measurement of the lease liabilities borne assets
Category of leases (if applicable) lease liabilities (if
Name of lessor leased applicable)
assets
Amount Amount Amount Amount Amount Amount
Amount for Amount for Amount for Amount for
for the for the for the for the for the for the
the current the previous the current the previous
current previous current previous current previous
period period period period
period period period period period period
Shenzhen
Shentou
Investment
Property 341,790.05 132,734.00 32,655.78 57,353.26
properties
Development
Co., Ltd.
Shenzhen Hi-
tech Zone
Investment
Development 54,243.00 4,765.04
properties
Construction
Co., Ltd.
Shenzhen
Large
Industrial Zone
(Shenzhen
Export
Investment
Processing 7,381.56
properties
Zone)
Development
Management
Group Co.,
Ltd.
ShenZhen
Special
Economic
Zone Real
Estate &
Properties Investment
properties 104,000.00 435,714.27 330,000.00 44,091.30
(Group) Co.,
Ltd. and its
consolidated
subsidiaries,
except where
the context
157
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
otherwise
requires
Shenzhen
Investment
Petrel Hotel 24,048.77 14,898.50
property
Co., Ltd.
Notes:
(4) Information on Related-party Guarantee
The Company was guarantor:
Unit: RMB
Execution
Secured party Amount of guarantee Start date End date
accomplished or not
The Company was secured party
Unit: RMB
Execution
Guarantor: Amount of guarantee Start date End date
accomplished or not
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 Yes
Ltd.
Notes:
(5) Information on Inter-bank Lending of Capital of Related Parties
Unit: RMB
Related parties Amount Start date Maturity date Note
Borrowing
Lending
(6) Information on Assets Transfer and Debt Restructuring by Related Party
Unit: RMB
Content of the related- Amount for the current Amount for the previous
Related parties
party transaction period period
(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
5,467,228.36 5,059,171.07
personnel
(8) Other Related-party Transactions
6. Accounts Receivable and Payable of Related Party
(1) Accounts Receivable
Unit: RMB
158
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Ending balance Beginning balance
Project name Related parties
Carrying amount Bad debt provision Carrying amount Bad debt provision
Accounts Hebei Shenbao Investment
29,580,856.88 887,425.71 15,856,697.13 475,700.91
receivable Development Co., Ltd.
Shenyue United
1,880,281.69 89,321.49 1,545,493.83 46,364.81
Investment Co., Ltd.
Shenzhen Guarantee
69,764.97 2,092.95
Group Co., Ltd.
Shenzhen Hi-tech Zone
Development Construction 2,955,686.43 255,635.55 3,292,961.84 177,657.15
Co., Ltd.
Shenzhen Convention &
Exhibition Center 311,415.85 23,213.48 1,379,512.79 55,256.38
Management Co., Ltd.
ShenZhen Special
Economic Zone Real
Estate & Properties
(Group) Co., Ltd. and its 10,072,563.13 1,252,620.81 10,072,563.13 674,112.86
consolidated subsidiaries,
except where the context
otherwise requires
Shenzhen Total Logistics
842,576.52 25,277.30 779,745.46 23,392.36
Service Co., Ltd.
Shenzhen Shenzhen Hong
Kong Science and
Technology Innovation 114,435.00 3,433.05
Cooperation Zone
Development Co., Ltd.
Shenzhen Large Industrial
Zone (Shenzhen Export
Processing Zone) 1,063,169.24 82,335.08 1,811,138.85 104,774.17
Development Management
Group Co., Ltd.
Shenzhen Fubao Industrial
306,960.04 9,208.80 307,714.39 9,231.43
Park Operation Co., Ltd.
Shenzhen Environmental
Protection Technology 2,325,047.53 69,751.43 1,331,881.42 39,956.44
Group Co., Ltd.
Shenzhen Shenfubao
(Group) Tianjin Industrial 917,263.67 66,998.66 917,263.67 66,998.66
Development Co., Ltd.
Shenzhen Shenfubao
(Group) Tianjin Investment 3,254,324.58 112,615.34 2,454,324.58 88,615.34
Development Co., Ltd.
Shenzhen Shenfubao
4,153,519.42 159,605.58 3,699,118.44 145,973.55
(Group) Co., Ltd.
Shenzhen Shenfubao
Eastern Investment 13,983.54 419.51 55.70 1.67
Development Co., Ltd.
Shenzhen Shentou
Property Development Co., 3,607,013.37 108,210.40 1,500,297.75 45,008.93
Ltd.
Shenzhen Investment
3,991,522.56 139,974.08 6,623,892.25 218,945.16
Holdings Co., Ltd.
Shenzhen Bay Area
International Hotel Co., 51,312,666.65 1,539,380.00
Ltd.
159
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Shenzhen Bay (Baoding)
Innovation Development 156,427.62 4,692.83 116,061.39 3,481.84
Co., Ltd.
Shenzhen Bay Technology
107,824,285.09 6,746,937.22 131,203,332.93 3,936,099.99
Development Co., Ltd.
Shenzhen Bay Area Urban
Construction and 220,039.50 6,601.19
Development Co., Ltd.
Shenzhen Xiangmihu
International Exchange
1,743,182.23 52,295.47 811,111.70 24,333.35
Center Development Co.,
Ltd.
Shenzhen Infinova Smart
140,000.00 9,600.00 320,000.00 9,600.00
Park Technology Co., Ltd.
Shenzhen Tsinghua
University Research 84,632.14 3,393.22 113,107.19 3,393.22
Institute
China Shenzhen Foreign
607,166.50 18,215.00
Trade (Group) Corp. Ltd.
China Kunpeng Industry
Source Innovation Center 366,352.02 10,990.56 226,669.33 6,800.08
(Shenzhen) Co., Ltd.
Shenzhen Special Zone
Literature Magazine Co., 27,234.00 817.02
Ltd.
Shenzhen Investment
Holdings Development 9,675.93 217.56 7,251.89 217.56
Co., Ltd.
Shenzhen Bay Wanli Hotel
Branch of Shenzhen
846,991.69 25,409.75
Wuzhou Hotel
Management Co., Ltd.
Shenzhen Bay Wanyi
Hotel Branch of Shenzhen
452,061.02 13,561.83
Wuzhou Hotel
Management Co., Ltd.
Shenzhen Infinova Limited 11,792.64 353.78
Shenzhen Talent
Recruitment International 41,516.85 1,245.51
Co., Ltd.
Shenzhen South
7,986.28 239.59
Certification Co., Ltd.
Shenzhen Transportation
Station Development Co., 4,608.64 138.26
Ltd.
Shenzhen High-tech Invest
and Venture Capital Co., 50.00 5.00 50.00 1.50
Ltd.
Total 177,820,186.60 10,177,326.98 235,867,112.28 7,700,823.36
Contract Hebei Shenbao Investment
298,930.06 373,225.04
assets Development Co., Ltd.
Shenzhen Large Industrial
Zone (Shenzhen Export
Processing Zone) 337,422.67 337,422.67
Development Management
Group Co., Ltd.
160
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Shenzhen Fubao Industrial
26,457.15 26,457.15
Park Operation Co., Ltd.
Shenzhen Environmental
Protection Technology 28,385.93
Group Co., Ltd.
Shenzhen Shenfubao
43,500.00 43,500.00
(Group) Co., Ltd.
Shenzhen Shenfubao
Eastern Investment 14,649.15 14,649.15
Development Co., Ltd.
Shenzhen Investment
139,004.56 139,004.56
Holdings Co., Ltd.
Shenzhen Bay Area Urban
Construction and 50,169.55 50,169.55
Development Co., Ltd.
Shenzhen Xiangmihu
International Exchange
46,418.86 46,418.86
Center Development Co.,
Ltd.
Total 956,552.00 1,059,232.91
Shenzhen Hi-tech Zone
Other
Development Construction 199,678.53 10,458.60 121,714.92 5,080.85
receivables
Co., Ltd.
ShenZhen Special
Economic Zone Real
Estate & Properties
(Group) Co., Ltd. and its 100,000.00 10,000.00 100,000.00 10,000.00
consolidated subsidiaries,
except where the context
otherwise requires
Shenzhen Large Industrial
Zone (Shenzhen Export
Processing Zone) 102,583.54 3,077.51 2,583.54 77.51
Development Management
Group Co., Ltd.
Shenzhen Qianhai
Advanced Information 10,720,575.27 321,617.26 10,720,575.27 321,617.26
Service Co., Ltd.1
Shenzhen Shenfubao
Eastern Investment 350,000.00 10,500.00
Development Co., Ltd.
Shenzhen Shentou
Property Development Co., 81,233.00 81,233.00 81,233.00 81,233.00
Ltd.
Shenzhen Investment
685,740.90 157,127.32 685,740.90 112,893.70
Holdings Co., Ltd.
Shenzhen Xinhai Holding
201,499,990.18 6,044,999.71 201,499,990.18 6,044,999.71
Co., Ltd.
Shenzhen Xinhai Rongyao
Real Estate Development 375,068,984.55 11,252,069.54 375,068,984.55 11,252,069.54
Co., Ltd.
Shenzhen Tianjun
10,000,000.00 10,000,000.00
Industrial Co., Ltd.
Shenzhen Bay Technology
16,342,327.84 490,269.84 4,159,687.50 124,790.63
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.
161
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
China Shenzhen Foreign
3,734.83 373.48
Trade (Group) Corp. Ltd.
Shenzhen Convention &
Exhibition Center 1,000.00 30.00
Management Co., Ltd.
Total 616,899,378.06 20,128,647.03 604,191,508.94 19,700,399.93
Note 1: The other receivables of the Company to Shenzhen Qianhai Advanced Information Service Co., Ltd. (hereinafter referred to
as “Qianhai Advanced”) are advance money paid in advance due to the demolition of Lanhushidai 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. 891,120.88 787,002.77
payable
Shenzhen Infinova Renyong Information Co., Ltd. 25,203.84 25,203.84
Shenzhen General Institute of Architectural Design
527,200.00 1,199,653.20
and Research Co., Ltd.
Shenzhen SDG Service Co., Ltd. 282,144.00 282,144.00
Total 1,725,668.72 2,294,003.81
Other
Shenzhen Guarantee Group Co., Ltd. 1,494,841.29 1,494,841.29
payables
Shenzhen Free Trade Zone Life Service Co., Ltd. 4,850.00 4,850.00
Shenzhen Fubao Industrial Park Operation Co., Ltd. 6,951.26 11,579.00
Shenzhen Shenfubao (Group) Co., Ltd. 2,835,952.63 2,503,870.62
Shenzhen Shentou Property Development Co., Ltd. 8,793,493.79 10,126,517.16
Shenzhen Bay Wanli Hotel Branch of Shenzhen
687,525.00 687,525.00
Wuzhou Hotel Management Co., Ltd.
Shenzhen Bay Wanyi Hotel Branch of Shenzhen
562,521.00 562,521.00
Wuzhou Hotel Management Co., Ltd.
Shenzhen SME Venture Capital Co., Ltd. 339,760.59
Shenzhen Bay Technology Development Co., Ltd. 154,415,543.77 179,966,045.36
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. 132,509.60 265,018.43
Shenzhen Real Estate Jifa Warehousing Co., Ltd. 42,296,665.14 42,296,665.14
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
Shenzhen Foreign Service Group Co., Ltd. 1,101,949.83
Yangzhou Lvfa Real Estate Co., Ltd. 345,072,717.79 313,705,372.89
Shenzhen Cultural Business Development Co., Ltd. 773,680.00 773,680.00
Shenzhen Construction Development (Group)
152,227.00 152,227.00
Company
162
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Shenzhen Talent Recruitment International Co., Ltd. 147,132.37 147,132.37
Shenzhen South Certification Co., Ltd. 34,002.15 34,002.15
Shenzhen Shenfubao Eastern Investment
225,912.89
Development Co., Ltd.
Total 563,355,842.78 560,761,809.07
7. Commitments of Related Party
8. Other
XIII. Stock Payment
1. The Overall Situation of Share-based Payments
□Applicable Not applicable
2. Equity-settled Share-based Payments
□Applicable Not applicable
3. Cash-settled Share-based Payments
□Applicable Not applicable
4. Modification and Termination of Share-based Payments
5. Others
XIV. Commitments and Contingency
1. Significant Commitments
Significant commitments on balance sheet date
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
2,132,088,014.66 1,034,954,205.35
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. (Respondent 1, hereinafter
referred to as the "ITC Technology Park Company") and its High-tech Zone Branch (Respondent 2) for Software Park I
In February and March 2021, High-tech Zone Branch of ITC Technology Park Company and Shenzhen ITC Technology Park
Service Co., Ltd. received arbitration notices respectively of the case [2021] Shenguozhongshou No. 541 and [2021]
Shenguozhongshou No. 1063. The Fourth Owners’ Committee of Shenzhen Nanshan District Software Park applied for the
following award: 1. Respondent 1 shall return RMB9,893,677.82 and fund occupation fee of RMB3,272,665.99 (temporarily
calculated from 1 July 2012 to 31 January 2021), totaling RMB13,166,343.81; Respondent 1 shall bear the attorney’s fee of
RMB30,000.00; Respondent 2 shall return RMB31,077,017.59 and RMB635,929.44 of fund occupation fee (temporarily calculated
from 1 July 2020 to 31 January 2021), totaling RMB31,712,947.03; Respondent 2 shall bear the attorney's fee of RMB300,000.00.
The total amount of the above is RMB45,209,290.84.
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. 541 and
Case No. 1063. The arbitration awards on two cases were given on 23 and 24 March 2023 respectively. According to the conclusion
of arbitration awards, the High-tech Zone Branch of Shenzhen ITC Technology Park Service Co., Ltd. should return approximately
163
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
RMB540,000 of public revenue to the Owners' Committee of Shenzhen Nanshan District Software Park (in spite of RMB32 million
requested by the Owners' Committee) and bear a part of arbitration fee; in regard to the arbitration case between the ITC Technology
Park Company and the Owners' Committee of Shenzhen Nanshan District Software Park, all requests of the latter have been rejected
by the arbitration tribunal (in spite of RMB13 million requested by the Owners' Committee). The Owners' Committee, which is
carrying out election of new members, cannot provide any receipt account. Therefore, the respondents are communicating with the
applicant's attorney on details of execution.
(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. Meanwhile, the company procured a RMB3
million facility management system (consisting of 31 items) from Basepoint for the project. During delivery of the project, only 11
items of the system delivered by Basepoint passed the acceptance inspection, leaving the full delivery unfinished. Therefore, the
Company failed to reach a consensus with Basepoint on payment, and the latter sued the Company in 2021, making RMB3 million of
the Company's fund locked up. According to the judgment of first instance on 10 August 2022, the Company should compensate
RMB3 million to Basepoint. The Company refused to accept the first instance judgment and instituted an appeal for second instance
in 2022. The second instance is expected to start on 11 August 2023.
(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. During the second trial
conducted on line, Shenzhen Intermediate People’s Court rejected all requests appealed by Jinhailian and upheld the judgment of the
first trial.
(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 30 June, 2023, the balance of the deposit not discharged
with guarantee was RMB63,292,452.99, which would be discharged when the mortgage loans are paid off.
(2) Explanation shall be given even if there is no significant contingency for the Company to disclose
There was no significant contingency in the Company to disclose.
3. Others
XV. Events after Balance Sheet Date
1. Significant Non-adjustment Matters
Unit: RMB
Influence number to the
Reason of inability to estimate
Item Contents financial position and
influence number
operating results
2. Distribution of Profit
3. Sales Return
164
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
4. Notes to Other Events after Balance Sheet Date
XVI. Other Significant Events
1. The Accounting Errors Correction in Previous Period
(1) Retrospective Restatement
Unit: RMB
Name of the influenced report
Content Processing program items during comparison Accumulative impact
period
(2) Prospective Application
Reason for adopting prospective
Content Processing program
application
2. Debt Restructuring
3. Assets Replacement
(1) Non-monetary Assets Exchange
(2) Other Assets Replacement
4. Pension Plans
5. Discontinued Operations
Unit: RMB
Profit from
discontinued
operations
Income tax
Item Revenue Costs Total profit Net profit attributable to
expense
owners of the
Company as the
parent
Zhanjiang
Branch of
Shenzhen
Properties &
0.00 -5,073.06 61,355.83 0.00 61,355.83 61,355.83
Resources
Development
(Group) Ltd.
deregistered
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 1,053,881,874.68 773,181,325.02 78,401,433.15 1,905,464,632.85
165
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Operating cost 695,191,661.52 635,461,652.02 41,506,570.71 1,372,159,884.25
Total assets 13,299,291,495.21 1,710,738,121.43 489,507,593.11 15,499,537,209.75
Total liabilities 10,449,500,028.22 511,639,802.46 70,574,307.22 11,031,714,137.90
(3) If there Was no Reportable Segment, or the Total Amount of Assets and Liabilities of Each Reportable
Segment Could not Be Reported, Relevant Reasons Shall Be Clearly Stated
(4) Other notes
7. Other Significant Transactions and Events with Influence on Investors’ Decision-making
8. Other
XVII. Notes of Main Items in the Financial Statements of the Company as the Parent
1. Accounts Receivable
(1) Listed by Category
Unit: RMB
Ending balance Beginning balance
Carrying 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
of Bad
debt 96,702,269.40 96.80% 96,702,269.40 100.00% 96,702,269.40 94.67% 96,702,269.40 100.00%
provision
separately
accrued
Of which:
Accounts
receivable
withdrawal
of bad debt 3,201,456.76 3.20% 482,401.07 15.07% 2,719,055.69 5,447,776.99 5.33% 310,734.28 5.70% 5,137,042.71
provision
of by
group
Of which:
Total 99,903,726.16 100.00% 97,184,670.47 97.28% 2,719,055.69 102,150,046.39 100.00% 97,013,003.68 94.97% 5,137,042.71
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
Withdrawal of bad debt provision by group: 482401.07
Unit: RMB
166
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Portfolio of credit risk features 3,201,456.76 482,401.07 15.00%
Portfolio of transactions with
other related parties
Total 3,201,456.76 482,401.07
Notes to the determination basis for the group:
Withdrawal of bad debt provision by group: RMB482,401.07
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Within 1 year 1,413,114.27 42,393.43 3.00%
1-2 years 604,586.55 60,458.66 10.00%
2-3 years 1,061,644.99 318,493.50 30.00%
3-4 years 122,110.95 61,055.48 50.00%
Total 3,201,456.76 482,401.07
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 Ending balance
Within one year (including 1 year) 1,413,114.27
One to two years 604,586.55
Two to three years 1,061,644.99
More than three years 96,824,380.35
Three to four years 122,110.95
Over 5 years 96,702,269.40
Total 99,903,726.16
(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
310,734.28 171,666.79 482,401.07
provision by
group
Total 97,013,003.68 171,666.79 97,184,670.47
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
167
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
(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
Reason for
Name of the entity Nature Written-off amount procedures because of related-
verification
performed party transactions
Notes to verification of accounts receivable:
(4) Top 5 of the Ending Balance of the Accounts Receivable Collected according to Arrears Party
Unit: RMB
Proportion to total ending balance of Ending balance of bad
Name of the entity Ending balance
accounts receivable debt provision
Shenzhen Jiyong Properties &
Resources Development 93,811,328.05 93.90% 93,811,328.05
Company
Shenzhen Tewei Industry Co.,
2,836,561.00 2.84% 2,836,561.00
Ltd.
Shenzhen Feihuang Industrial
769,919.05 0.77% 230,975.72
Co., Ltd.
Shenzhen Meige Xiazi Catering
542,366.40 0.54% 162,709.92
Management Co., Ltd.
Shenzhen Pengxin Property
255,875.00 0.26% 7,676.25
Management Co., Ltd.
Total 98,216,049.50 98.31%
(5) Accounts receivable derecognized due to the transfer of financial assets
(6) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement of
Accounts Receivable
Other notes:
2. Other Receivables
Unit: RMB
Item Ending balance Beginning balance
Dividend receivable 151,433,108.41 151,433,108.41
Other receivables 4,444,939,247.02 5,010,963,761.04
Total 4,596,372,355.43 5,162,396,869.45
(1) Interest Receivable
1) Category of Interest Receivable
Unit: RMB
Item Ending balance Beginning balance
2) Significant Overdue Interest
Unit: RMB
Whether occurred
Entity Ending balance Overdue time Overdue reason impairment and its
judgment basis
Other notes:
168
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
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
Shenzhen Jinghengtai Real Estate
151,433,108.41 151,433,108.41
Development Co., Ltd.
Total 151,433,108.41 151,433,108.41
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 2,240,927.00 2,537,789.00
Payment on behalf
External intercourse funds 23,202,397.67 23,374,171.34
Intercourse funds to subsidiary 4,451,506,190.80 5,017,542,623.59
Total 4,476,949,515.47 5,043,454,583.93
2) Withdrawal of Bad Debt Provision
Unit: RMB
First stage Second stage Third stage
Expected loss in the Expected loss in the
Bad debt provision Expected credit loss Total
duration (credit duration (credit
in the next 12
impairment not impairment
months
occurred) occurred)
Balance of 1 January 2023 8,997,495.81 23,493,327.08 32,490,822.89
Balance of 1 January 2023 in the
current period
Withdrawal of the current period 31,429.94 -511,984.38 -480,554.44
Balance as at 30 June 2023 9,028,925.75 22,981,342.70 32,010,268.45
Changes of carrying amount with significant amount changed of loss provision in the current period
□Applicable Not applicable
Disclosure by aging
Unit: RMB
Aging Ending balance
Within one year (including 1 year) 4,444,878,230.56
One to two years 11,200.00
Two to three years 40,849.05
More than three years 32,019,235.86
Three to four years 69,600.00
Over 5 years 31,949,635.86
Total 4,476,949,515.47
169
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
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
32,490,822.89 -480,554.44 32,010,268.45
receivables
Total 32,490,822.89 -480,554.44 32,010,268.45
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
Reason for
Name of the entity Nature Written-off amount procedures because of related-
verification
performed party transactions
Notes to the verification of other receivables:
5) Top 5 of the Ending Balance of Other Receivables Collected according to the Arrears Party
Unit: RMB
Proportion to
Ending
total ending
balance of
Name of the entity Nature Ending balance Aging balance of
bad debt
other
provision
receivables %
Dongguan Wuhe Real Estate Co., Intercourse funds to Within 1
2,113,760,170.00 47.21%
Ltd. subsidiary year
Shenzhen Guangming Wuhe Real Intercourse funds to Within 1
1,471,000,000.00 32.86%
Estate Co., Ltd. subsidiary year
Yangzhou Wuhe Real Estate Co., Intercourse funds to Within 1
700,614,325.72 15.65%
Ltd. subsidiary year
SZPRD Xuzhou Dapeng Real Estate Intercourse funds to Within 1
40,568,374.85 0.91%
Development Co., Ltd. subsidiary year
Shum Yip Properties Development Intercourse funds to Over 5
106,409,390.56 2.38% 6,652,394.80
Co., Ltd. subsidiary years
Total 4,432,352,261.13 99.01% 6,652,394.80
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:
170
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
3. Long-term Equity Investment
Unit: RMB
Ending balance Beginning balance
Item Impairment Impairment
Carrying amount Carrying value Carrying amount Carrying value
provision provision
Investment
to 1,433,799,880.39 65,834,000.00 1,367,965,880.39 1,436,329,880.39 68,364,000.00 1,367,965,880.39
subsidiaries
Investment
to joint
ventures
100,559,319.77 18,983,614.14 81,575,705.63 98,765,051.45 18,983,614.14 79,781,437.31
and
associated
enterprises
Total 1,534,359,200.16 84,817,614.14 1,449,541,586.02 1,535,094,931.84 87,347,614.14 1,447,747,317.70
(1) Investment to Subsidiaries
Unit: RMB
Increase/decrease for the current period
Beginning Withdrawal Ending balance of
Ending balance
Investee balance (carrying Additional Reduced of depreciation
value) Others (Carrying value) reserve
investment investment impairment
provision
Shenzhen Huangcheng Real
35,552,671.93 35,552,671.93
Estate Co., Ltd.
Shenzhen Wuhe Industry
Investment Development 44,950,000.00 44,950,000.00
Co., Ltd.
SZPRD Yangzhou Real
Estate Development Co., 50,000,000.00 50,000,000.00
Ltd.
Dongguan ITC Changsheng
Real Estate Development 20,000,000.00 20,000,000.00
Co., Ltd.
Shenzhen International
Trade Center Property 195,337,851.23 195,337,851.23
Management Co., Ltd.
Shenzhen Property
Engineering and
3,000,000.00 3,000,000.00
Construction Supervision
Co., Ltd.
SZPRD Commercial
63,509,120.32 63,509,120.32
Operation Co., Ltd.
Shum Yip Properties
15,834,000.00
Development Co., Ltd.
SZPRD Xuzhou Dapeng
Real Estate Development 50,000,000.00
Co., Ltd.
Shenzhen Rongyao Real
Estate Development Co., 508,000,000.00 508,000,000.00
Ltd.
Shenzhen ITC Technology
Park Service Co., Ltd.
SZPRD Urban Renewal Co.,
77,474,479.29 77,474,479.29
Ltd.
Dongguan Wuhe Real Estate
50,000,000.00 50,000,000.00
Co., Ltd.
171
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Shenzhen Guangming Wuhe
50,000,000.00 50,000,000.00
Real Estate Co., Ltd.
Shenzhen Wuhe Urban
236,641,757.62 236,641,757.62
Renewal Co., Ltd.
Yangzhou Wuhe Real Estate
33,500,000.00 33,500,000.00
Co., Ltd.
Total 1,367,965,880.39 1,367,965,880.39 65,834,000.00
(2) Investment to Joint Ventures and Associated Enterprises
Unit: RMB
Increase/decrease for the current period
Beginning Gains and Cash Ending Ending
Withdraw
balance Addition losses Adjustment Chang bonus or balance balance of
Investee Reduced al of
(carrying al recognized of other es of profits Other (Carrying depreciation
investme impairme
value) investme under the comprehensi other announc s value) reserve
nt nt
nt equity ve income equity ed to
provision
method issue
I. Joint ventures
Shenzhen
Real Estate
Jifa 44,730,585. 1,722,873. 46,453,459.
Warehousi 29 98 27
ng Co.,
Ltd.
Tian’an
Internation
al Building
Property
7,037,952.3 7,120,847.6
Manageme 82,895.33
nt 1 4
Company
of
Shenzhen
51,768,537. 1,805,769. 53,574,306.
Subtotal
60 31 91
II. Associated enterprises
Shenzhen
Wufang
18,983,614.
Ceramics
Industrial 14
Co., Ltd.
CSCEC
Intelligent
28,012,899. 63,120.0 28,001,398.
Parking 51,619.01
Technolog 71 0 72
y Co., Ltd.
28,012,899. 63,120.0 28,001,398. 18,983,614.
Subtotal 51,619.01
71 0 72 14
79,781,437. 1,857,388. 63,120.0 81,575,705. 18,983,614.
Total
31 32 0 63 14
(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 995,033,423.48 697,320,050.39 23,251,320.73 16,550,326.74
Others 8,588,500.36 711,099.38 8,338,349.86 659,988.00
172
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
Total 1,003,621,923.84 698,031,149.77 31,589,670.59 17,210,314.74
Relevant information of revenue:
Unit: RMB
Category of contracts Segment 1 Segment 2 Total
Product categories
Of which:
Real estate business 974,533,312.66 974,533,312.66
House leasing business 29,088,611.18 29,088,611.18
Classification by
operating region
Of which:
Shenzhen 1,003,621,923.84 1,003,621,923.84
Market or customer type
Of which:
Contract type
Of which:
Classification by time of
commodity transfer
Of which:
Classification by contract
term
Of which:
Classification by sales
channel
Of which:
Total 1,003,621,923.84 1,003,621,923.84
Information about performance obligations:
The income of the parent company in current period was income from the business of real estate and lease.
Information in relation to the transaction price apportioned to the residual contract performance obligation:
The amount of revenue corresponding to performance obligations of contracts signed but not performed or not fully performed yet
was RMB0.00 at the period-end, among which RMB__ was expected to be recognized in __, RMB__ was expected to be recognized
in __, and RMB__ was expected to be recognized in __.
Other notes:
5. Investment Income
Unit: RMB
Item Amount for the current period Amount for the previous period
Long-term equity investment income
1,857,388.32 859,534.38
accounted by equity method
Entrusted loans interest 76,724,135.18
Total 1,857,388.32 77,583,669.56
6. Other
173
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023
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-
current assets (inclusive of provision for 174,379.69
impairment of assets write-offs)
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 policies and 501,658.00
regulations, or granted continuously
according to certain standard quotas or
amounts)
Other non-operating income and expense
-562,616.42
other than the above
Less: Income tax effects 31,670.01
Non-controlling interests effects 23,017.77
Total 58,733.49 --
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
4.92% 0.3707 0.3707
shareholders of the Company
Net profit attributable to ordinary
shareholders of the Company after
4.92% 0.3706 0.3706
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
174
