ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarterly Report 2021
Stock Code: 000029, 200029 Stock Name: SPG, SPG-B Announcement No.: 2021-046
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE
& PROPERTIES (GROUP) CO., LTD.
THIRD QUARTERLY REPORT 2021
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. (hereinafter referred to as the
“Company”) and all the members of the Company’s Board of Directors hereby guarantee that the contents of this
Report are true, accurate and complete and free of any misrepresentations, misleading statements or material
omissions.
Important Notes:
1. The Board of Directors, the Supervisory Committee as well as the directors, supervisors and senior
management of the Company hereby guarantee that the contents of this Report are true, accurate and complete and
free of any misrepresentations, misleading statements or material omissions, and collectively and individually
accept legal responsibility for such contents.
2. The Company’s legal representative, Chief Financial Officer, and head of the Company’s financial department
(equivalent to financial manager) hereby guarantee that the financial statements carried in this Report are true,
accurate and complete.
3. Indicate whether the financial statements in this Report have been audited by an independent auditor.
□Yes √ No
I Key Financial Information
(I) Key Accounting Data and Financial Indicators
Indicate whether there is any retrospectively restated datum in the table below.
□ Yes √ No
Q3 2021 YoY change (%) Q1-Q3 2021 YoY change (%)
Operating revenue (RMB) 272,065,605.11 -56.22% 966,663,823.58 -20.61%
Net profit attributable to the listed
29,640,906.70 -70.82% 163,539,812.93 -17.75%
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before exceptional 29,576,289.10 -70.78% 162,466,061.77 -17.87%
gains and losses (RMB)
Net cash generated from/used in operating
—— —— -1,264,096,374.55 -1,397.71%
activities (RMB)
Basic earnings per share (RMB/share) 0.1004 -4.47% 0.1617 -17.71%
Diluted earnings per share (RMB/share) 0.1004 -4.47% 0.1617 -17.71%
Weighted average return on equity (%) 0.77% -1.99% 4.26% -8.48%
31 December
30 September 2021 Change (%)
2020
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarterly Report 2021
Total assets (RMB) 6,181,890,175.11 4,936,916,746.74 25.22%
Equity attributable to the listed company’s
3,873,072,154.75 3,797,512,488.22 1.99%
shareholders (RMB)
(II) Exceptional Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
Item Q3 2021 Q1-Q3 2021 Note
Non-operating income and expense other than the
86,156.80 1,431,668.21
above
Less: Income tax effects 21,539.20 357,917.05
Total 64,617.60 1,073,751.16 --
Other items that meet the definition of exceptional gain/loss:
□ Applicable √ Not applicable
No such cases in 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 in the Reporting Period.
(III) Changes in Key Financial Statement Line Items and Explanation
√ Applicable □ Not applicable
Unit: RMB
Key income statement item Q1-Q3 2021 Q1-Q3 2020 Change (%) Reason for change
Operating revenue 966,663,823.58 1,217,660,802.78 -20.61% Decrease in carryforwards of property
sales
Marketing expense 31,229,738.10 49,259,539.14 -36.60% Adjustment to the marketing pace
Finance costs -17,527,527.04 -6,794,077.29 -157.98% Increase in interest income
Return on investment 1,889,160.47 15,816,818.60 -88.06% Decrease in income from investments in
wealth management products
Key cash flow statement item Q1-Q3 2021 Q1-Q3 2020 Change (%) Reason for change
Net cash generated from/used in -1,264,096,374.55 97,409,818.45 -1397.71% Payment for land
operating activities
Net cash generated from/used in -951,251,423.49 1,020,818,810.32 193.19% Purchase of monetary funds
investing activities
Net cash generated from/used in 243,164,282.22 -166,923,900.00 245.67% Project company’s receipt of loan from
financing activities minority shareholder
Key balance sheet statement 30 September 2021 31 December 2020 Change (%) Reason for change
Monetary assets 702,463,353.84 2,687,465,070.01 -73.86% Purchase of monetary funds and
payment for land
Inventories 3,977,470,978.35 1,220,464,112.56 225.90% Increase in property development
projects
Accounts payable 100,660,778.43 176,926,614.28 -43.11% Payment for engineering service
Contract liabilities 322,759,572.82 196,786,977.19 64.01% Increase in property pre-sale revenue
II Shareholder Information
(I) Numbers of Ordinary Shareholders and Preference Shareholders with Resumed Voting Rights as well
as Holdings of Top 10 Shareholders
Unit: share
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarterly Report 2021
Number of preference
Number of ordinary shareholders 57,265 shareholders with resumed 0
voting rights (if any)
Top 10 shareholders
Shares in pledge,
Nature of Shareholdin Total shares Restricted marked or frozen
Name of shareholder
shareholder g percentage held shares held
Status Shares
Shenzhen Investment Holdings Co., State-owned
57.19% 578,595,836
Ltd. corporation
Domestic
Shenzhen State-Owned Equity
non-state-owned 6.35% 64,288,426
Operation and Management Co., Ltd.
legal person
Domestic natural
Yang Jianmin 0.37% 3,766,777
person
Domestic natural
Pan Jun 0.32% 3,254,300
person
Domestic natural
Lin Weirong 0.31% 3,128,600
person
Domestic natural
Wang Yulan 0.23% 2,288,391
person
Domestic natural
Liu Yuqing 0.21% 2,100,201
person
Domestic
Shenzhen Bao'an Songgang Huamei
non-state-owned 0.18% 1,835,300
Industry Company
legal person
Domestic natural
Zang Xiangfeng 0.16% 1,614,363
person
Domestic natural
He Qiao 0.16% 1,575,000
person
Top 10 unrestricted shareholders
Shares by type
Name of shareholder Unrestricted shares held
Type Shares
RMB-denominated
Shenzhen Investment Holdings Co., Ltd. 578,595,836 578,595,836
ordinary stock
Shenzhen State-Owned Equity Operation and RMB-denominated
64,288,426 64,288,426
Management Co., Ltd. ordinary stock
RMB-denominated
Yang Jianmin 3,766,777 3,766,777
ordinary stock
RMB-denominated
Pan Jun 3,254,300 3,254,300
ordinary stock
RMB-denominated
Lin Weirong 3,128,600 3,128,600
ordinary stock
RMB-denominated
Wang Yulan 2,288,391 2,288,391
ordinary stock
RMB-denominated
Liu Yuqing 2,100,201 2,100,201
ordinary stock
RMB-denominated
Shenzhen Bao'an Songgang Huamei Industry Company 1,835,300 1,835,300
ordinary stock
RMB-denominated
Zang Xiangfeng 1,614,363 1,614,363
ordinary stock
RMB-denominated
He Qiao 1,575,000 1,575,000
ordinary stock
Related or acting-in-concert parties among the Among the top 10 shareholders of the Company, Shenzhen State-Owned
shareholders above Equity Operation and Management Co., Ltd. is the wholly-owned
subsidiary of Shenzhen Investment Holdings Co., Ltd. The Company does
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarterly Report 2021
not know whether there exists related-party relationship among the other
shareholders, or whether they are persons acting in concert as prescribed
in the Administrative Measures for the Acquisition of Listed Companies.
Among the top 10 shareholders, the third shareholder holds 1,466,400
shares of the Company in his credit security account; the fifth shareholder
holds 1,969,900 shares of the Company in his credit security account; the
seventh shareholder holds 2,010,201 shares of the Company in his credit
Top 10 shareholders engaged in securities margin
security account; the eighth shareholder holds 1,835,300 shares of the
trading (if any)
Company in its credit security account; the ninth shareholder holds
1,600,663 shares of the Company in its credit security account; the tenth
shareholder holds 1,279,600 shares of the Company in his credit security
account.
(II) Number of Preference Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
III Other Significant Events
√ Applicable □ Not applicable
The Measures for the Management of Employees' Co-investment and the Measures for the Management of Employees'
Co-investment of Linxijun Project were deliberated and approved at the 63rd Meeting of the 7th Board of Directors and the 2021
First Extraordinary General Meeting. For more details, see the Announcement on Resolutions of the 63rd Meeting of the 7th Board
of Directors (Announcement No. 2021-023) and the Announcement on Resolutions of the 2021 First Extraordinary General Meeting
of Shareholders (Announcement No. 2021-026) disclosed on 1 July and 17 July 2021. During the Reporting Period, the
co-investment employees followed the investment in projects through establishing a partnership enterprise and completed the
payment of co-investment subscription funds.
During the Reporting Period, the Company received the Letter of Commitment on Avoiding Horizontal Competition from the
controlling shareholder Shenzhen Investment Holdings Co., Ltd. which took effect since 27 September 2021. For more details, see
the Announcement on Receiving the Letter of Commitment on Avoiding Horizontal Competition from the Controlling Shareholder
(Announcement No. 2021-032) disclosed by the Company on 11 September 2021 and the Announcement on Resolutions of the 2021
First Extraordinary General Meeting (Announcement No. 2021-34) disclosed by ShenZhen Properties & Resources Development
(Group) Ltd. on 27 September 2021.
In June 2021, the Company purchased wealth management products with its own funds of RMB1.3 billion. For more details, see the
Announcement on Progress of Purchasing Wealth Management Products with its Own Funds (Announcement No. 2021-022)
disclosed by the Company on 4 June 2021. Above wealth management products have been partly redeemed during the Reporting
Period. For more details, see the Announcement on Progress of Purchasing Wealth Management Products with its Own Funds
(Announcement No. 2021-036) disclosed by the Company on 24 September 2021.
On 28 September 2021, the Company participated in the land use right assignment activity through quotation held by the Land and
Mining Rights Business Branch of Shenzhen Exchange Group Co., Ltd., and won the use right of No. A511-0039 state-owned land
with RMB965 million. For more details, see the Announcement on Winning the Bid of State-Owned Land Use Right (Announcement
No. 2021-039) disclosed by the Company on 30 September 2021.
IV Quarterly Financial Statements
(I) Financial Statements
1. Consolidated Balance Sheet
Prepared by ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
30 September 2021
Unit: RMB
Item 30 September 2021 31 December 2020
Current assets:
Monetary assets 702,463,353.84 2,687,465,070.01
Settlement reserve
Loans to other banks and financial
institutions
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarterly Report 2021
Held-for-trading financial assets 510,767,599.33
Derivative financial assets
Notes receivable 11,114,994.95 35,438,045.34
Accounts receivable 55,993,577.86 59,590,944.06
Receivables financing
Prepayments 11,517,698.85 3,205,534.51
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract
reserve
Other receivables 16,225,307.09 32,745,043.84
Including: Interest receivable
Dividends receivable 1,052,192.76 1,052,192.76
Financial assets purchased under
resale agreements
Inventories 3,977,470,978.35 1,220,464,112.56
Contract assets
Assets held for sale
Current portion of non-current assets
Other current assets 128,265,569.09 102,907,134.79
Total current assets 5,413,819,079.36 4,141,815,885.11
Non-current assets:
Loans and advances to customers
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 377,489.65 377,489.65
Investments in other equity
37,811,287.05 37,510,860.51
instruments
Other non-current financial assets
Investment property 596,946,146.28 616,365,621.53
Fixed assets 26,322,494.00 28,039,978.43
Construction in progress
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets
Development costs
Goodwill
Long-term prepaid expense 1,235,547.16 61,667.53
Deferred income tax assets 105,378,131.61 112,745,243.98
Other non-current assets
Total non-current assets 768,071,095.75 795,100,861.63
Total assets 6,181,890,175.11 4,936,916,746.74
Current liabilities:
Short-term borrowings 52,261,448.28 76,893,995.94
Borrowings from the central bank
Loans from other banks and financial
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarterly Report 2021
institutions
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 309,963,085.83
Accounts payable 100,660,778.43 176,926,614.28
Advances from customers 7,234,825.01 5,940,092.15
Contract liabilities 322,759,572.82 196,786,977.19
Financial assets sold under
repurchase agreements
Customer deposits and deposits from
other banks and financial institutions
Payables for acting trading of
securities
Payables for underwriting of
securities
Employee benefits payable 56,949,499.33 60,467,834.09
Taxes and levies payable 534,560,448.32 459,709,646.95
Other payables 600,816,147.79 277,105,129.74
Including: Interest payable 16,535,277.94 16,535,277.94
Dividends payable
Fees and commissions payable
Reinsurance payables
Liabilities directly associated with
assets held for sale
Current portion of non-current
liabilities
Other current liabilities 16,052,821.06 8,917,027.07
Total current liabilities 2,001,258,626.87 1,262,747,317.41
Non-current liabilities:
Insurance contract reserve
Long-term borrowings
Bonds payable
Including: Preference shares
Perpetual bonds
Lease liabilities
Long-term payables 7,714,318.04 7,480,233.43
Long-term employee benefits
payable
Provisions
Deferred income
Deferred income tax liabilities 9,601,940.74 9,601,940.74
Other non-current liabilities
Total non-current liabilities 17,316,258.78 17,082,174.17
Total liabilities 2,018,574,885.65 1,279,829,491.58
Owners’ equity:
Share capital 1,011,660,000.00 1,011,660,000.00
Other equity instruments
Including: Preference shares
Perpetual bonds
Capital reserves 978,244,910.11 978,244,910.11
Less: Treasury stock
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarterly Report 2021
Other comprehensive income 28,197,323.73 28,163,050.13
Specific reserve
Surplus reserves 218,724,273.67 218,724,273.67
General reserve
Retained earnings 1,636,245,647.24 1,560,720,254.31
Total equity attributable to owners of
3,873,072,154.75 3,797,512,488.22
the Company as the parent
Non-controlling interests 290,243,134.71 -140,425,233.06
Total owners’ equity 4,163,315,289.46 3,657,087,255.16
Total liabilities and owners’ equity 6,181,890,175.11 4,936,916,746.74
Legal representative: Liu Zhengyu Chief Financial Officer: Wang Jianfei Head of the financial department: Qiao Yanjun
2. Consolidated Income Statement for Q1~Q3
Unit: RMB
Item Q1~Q3 2021 Q1~Q3 2020
1. Revenues 966,663,823.58 1,217,660,802.78
Including: Operating revenue 966,663,823.58 1,217,660,802.78
Interest income
Insurance premium income
Fee and commission income
2. Costs and expenses 758,251,988.28 960,778,486.08
Including: Cost of sales 487,064,303.36 605,566,564.44
Interest expense
Fee and commission expense
Surrenders
Net insurance claims paid
Net amount provided as insurance contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and levies 198,738,261.87 256,360,411.16
Selling expense 31,229,738.10 49,259,539.14
Administrative expense 58,747,211.99 56,386,048.63
R&D expense
Finance costs -17,527,527.04 -6,794,077.29
Including: Interest expense
Interest income 17,610,476.40 7,502,105.11
Add: Other income 1,139,049.16 948,216.96
Return on investment (“-” for loss) 1,889,160.47 15,816,818.60
Including: Share of profit or loss 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) 8,571,018.86
Credit impairment loss (“-” for loss) 1,167,580.27
Asset impairment loss (“-” for loss) 534,500.00
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarterly Report 2021
Asset disposal income (“-” for loss)
3. Operating profit (“-” for loss) 221,178,644.06 274,181,852.26
Add: Non-operating income 1,587,259.37 3,428,723.89
Less: Non-operating expense 155,591.16 2,073,834.53
4. Gross profit (“-” for loss) 222,610,312.27 275,536,741.62
Less: Income tax expense 60,786,470.63 76,660,884.16
5. Net profit (“-” for net loss) 161,823,841.64 198,875,857.46
5.1 By operating continuity
5.1.1 Net profit from continuing operations (“-” for net loss) 161,823,841.64 198,875,857.46
5.1.2 Net profit from discontinued operations (“-” for net loss)
5.2 By ownership
5.2.1 Net profit attributable to owners of the Company as the
163,539,812.93 198,840,278.63
parent
5.2.1 Net profit attributable to non-controlling interests -1,715,971.29 35,578.83
6. Other comprehensive income, net of tax 434,659.62 -5,938,704.24
Attributable to owners of the Company as the parent 34,273.60 -6,275,302.44
6.1 Items that will not be reclassified to profit or loss 300,426.54 -4,528,691.88
6.1.1 Changes caused by remeasurements on defined benefit
schemes
6.1.2 Other comprehensive income that will not be
reclassified to profit or loss under the equity method
6.1.3 Changes in the fair value of investments in other
300,426.54 -4,528,691.88
equity instruments
6.1.4 Changes in the fair value arising from changes in own
credit risk
6.1.5 Other
6.2 Items that will be reclassified to profit or loss -266,152.94 -1,746,610.56
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 other debt investments
6.2.3 Other comprehensive income arising from the
reclassification of financial assets
6.2.4 Credit impairment allowance for other debt
investments
6.2.5 Reserve for cash flow hedges
6.2.6 Differences arising from the translation of foreign
-266,152.94 -1,746,610.56
currency-denominated financial statements
6.2.7 Other
Attributable to non-controlling interests 400,386.02 336,598.20
7. Total comprehensive income 162,258,501.26 192,937,153.22
Attributable to owners of the Company as the parent 163,574,086.53 192,564,976.19
Attributable to non-controlling interests -1,315,585.27 372,177.03
8. Earnings per share
8.1 Basic earnings per share 0.1617 0.1965
8.2 Diluted earnings per share 0.1617 0.1965
Where business combinations under common control occurred in the current period, the net profit achieved by the acquirees before
the combinations was RMB0.00, with the amount for the same period of last year being RMB0.00.
Legal representative: Liu Zhengyu Chief Financial Officer: Wang Jianfei Head of the financial department: Qiao Yanjun
3. Consolidated Cash Flow Statement for Q1~Q3
Unit: RMB
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarterly Report 2021
Item Q1~Q3 2021 Q1~Q3 2020
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of services 1,193,484,545.48 1,264,810,543.01
Net increase in customer deposits and deposits from other banks
and financial institutions
Net increase in borrowings from the central bank
Net increase in loans from other financial institutions
Premiums received on original insurance contracts
Net proceeds from reinsurance
Net increase in deposits and investments of policy holders
Interest, fees and commissions received
Net increase in loans from other banks and financial institutions
Net increase in proceeds from repurchase transactions
Net proceeds from acting trading of securities
Tax and levy rebates 36,956.05 30,184.28
Cash generated from other operating activities 291,631,335.69 189,648,016.53
Subtotal of cash generated from operating activities 1,485,152,837.22 1,454,488,743.82
Payments for commodities and services 1,960,830,478.99 335,093,891.09
Net increase in loans and advances to customers
Net increase in deposits in the central bank and other banks and
financial institutions
Payments for claims on original insurance contracts
Net increase in loans to other banks and financial institutions
Interest, fees and commissions paid
Policy dividends paid
Cash paid to and for employees 109,899,447.97 112,729,873.31
Taxes and levies paid 259,655,231.62 604,692,731.70
Cash used in other operating activities 418,864,053.19 304,562,429.27
Subtotal of cash used in operating activities 2,749,249,211.77 1,357,078,925.37
Net cash generated from/used in operating activities -1,264,096,374.55 97,409,818.45
2. Cash flows from investing activities:
Proceeds from disinvestment 1,000,000,000.00
Return on investment 1,889,160.47 20,917,568.22
Net proceeds from the disposal of fixed assets, intangible assets
1,700.00 1,000.00
and other long-lived assets
Net proceeds from the disposal of subsidiaries and other business
units
Cash generated from other investing activities 797,803,419.53
Subtotal of cash generated from investing activities 799,694,280.00 1,020,918,568.22
Payments for the acquisition of fixed assets, intangible assets and
1,063,945.34 99,757.90
other long-lived assets
Payments for investments
Net increase in pledged loans granted
Net payments for the acquisition of subsidiaries and other
449,881,758.15
business units
Cash used in other investing activities 1,300,000,000.00
Subtotal of cash used in investing activities 1,750,945,703.49 99,757.90
Net cash generated from/used in investing activities -951,251,423.49 1,020,818,810.32
3. Cash flows from financing activities:
Capital contributions received
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarterly Report 2021
Including: Capital contributions by non-controlling interests to
subsidiaries
Borrowings received
Cash generated from other financing activities 331,178,702.21
Subtotal of cash generated from financing activities 331,178,702.21 0.00
Repayment of borrowings
Interest and dividends paid 88,014,419.99 166,923,900.00
Including: Dividends paid by subsidiaries to non-controlling
interests
Cash used in other financing activities
Subtotal of cash used in financing activities 88,014,419.99 166,923,900.00
Net cash generated from/used in financing activities 243,164,282.22 -166,923,900.00
4. Effect of foreign exchange rates changes on cash and cash
-34,837.73 -366,192.25
equivalents
5. Net increase in cash and cash equivalents -1,972,218,353.55 950,938,536.52
Add: Cash and cash equivalents, beginning of the period 2,669,103,926.82 1,507,189,760.35
6. Cash and cash equivalents, end of the period 696,885,573.27 2,458,128,296.87
(II) Adjustments to the Financial Statements
1. Adjustments to the Financial Statements at the Beginning of the First Execution Year of the New
Standards Governing Leases from 2021
√ Applicable □ Not applicable
Whether the Company needs to adjust items in the balance sheet at the beginning of the year
□ Yes √ No
The reason for not adjusting balance sheet account at the beginning of the year:
In accordance with the provisions of the new leasing standards, from 1 January 2021, the group chooses to recognize right-of-use
assets and lease liabilities for all leased assets at the present value of the minimum lease payment for future rent payable, with the
exception of simplified short-term leases and leases of low-value assets, and to recognize depreciation and interest expenses
respectively, without adjusting the information for comparable periods. In practice, there are not many leased assets within the group,
which is the main reason to simplify short-term leases and leases of low-value assets and no longer recognize its right-of-use assets
and lease liabilities.
2. Retrospective Restatement of Previous Comparative Data due to the First Execution of the New
Standards Governing Leases from 2021
□ Applicable √ Not applicable
(III) Independent Auditor’s Report
Indicate by tick mark whether the financial statements above have been audited by an independent auditor.
□ Yes √ No
These financial statements have not been audited by such an auditor.
Board of Directors
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
25 October 2021
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