ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE
& PROPERTIES (GROUP) CO., LTD.
INTERIM REPORT 2022
2022-030
August 2022
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Part I Important Notes, Table of Contents and Definitions
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of ShenZhen Special Economic Zone Real Estate &
Properties (Group) Co., 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 Zhengyu, chairman of the Company’s Board, Wang Jianfei, the Company’s Chief
Financial Officer, and Qiao Yanjun, 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.
Certain descriptions about the Company’s operating plans or work arrangements for the
future mentioned in this Report and its summary, the implementation of which is subject to
various factors, shall NOT be considered as promises to investors. Therefore, investors are
reminded to exercise caution when making investment decisions.
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.
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
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 ...................................................................................................... 25
Part V Environmental and Social Responsibility .......................................................................... 26
Part VI Significant Events ............................................................................................................... 27
Part VII Share Changes and Shareholder Information ............................................................... 33
Part VIII Preferred Shares .............................................................................................................. 37
Part IX Bonds ................................................................................................................................... 38
Part X Financial Statements ........................................................................................................... 39
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Documents Available for Reference
1. The financial statements with the personal signatures and stamps of the Company’s legal
representative, Chief Financial Officer and head of the financial department; and
2. The originals of all the documents and announcements disclosed by the Company on Securities
Times, China Securities Journal and Ta Kung Pao during the Reporting Period.
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Definitions
Term Definition
The State-owned Assets Supervision and Administration Commission of the
“Shenzhen SASAC” or the “Municipal SASAC”
People’s Government of Shenzhen Municipal
SIHC Shenzhen Investment Holdings Co., Ltd.
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
The “Company”, the “Group”, “SPG” or “we”
and its consolidated subsidiaries, except where the context otherwise requires
Shenzhen Property Management Shenzhen Property Management Co., Ltd.
Petrel Hotel Shenzhen Petrel Hotel Co., Ltd.
Zhentong Engineering Shenzhen Zhentong Engineering Co., Ltd.
Huazhan Construction Supervision Shenzhen Huazhan Construction Supervision Co., Ltd.
Jianbang Group Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd.
Chuanqi Real Estate Development Shenzhen SPG Chuanqi Real Estate Development Co., Ltd.
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Part II Corporate Information and Key Financial Information
I Corporate Information
Stock name SPG, SPG-B Stock code 000029, 200029
Stock exchange for stock
Shenzhen Stock Exchange
listing
Company name in Chinese 深圳经济特区房地产(集团)股份有限公司
Abbr. (if any) 深房集团
Company name in English (if
ShenZhen Special Economic Zone Real Estate&Properties (Group).co.，Ltd．
any)
Abbr. (if any) SPG
Legal representative Liu Zhengyu
II Contact Information
Board Secretary Securities Representative
Name Luo Yi Hong Lu
47/F, SPG Plaza, Renmin South Road, 47/F, SPG Plaza, Renmin South Road,
Address Luohu District, Shenzhen, Guangdong, Luohu District, Shenzhen, Guangdong,
P.R.China P.R.China
Tel. （86 755）25108897 （86 755）25108837
Fax （86 755）82294024 （86 755）82294024
Email address spg@163.net spg@163.net
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
and email address 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 2021 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 newspapers designated by the Company for information disclosure, the website designated by the CSRC for disclosing the
Company’s periodic reports and the place for keeping such reports did not change in the Reporting Period. The said information
can be found in the 2021 Annual Report.
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
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 2022 H1 2021 Change (%)
Operating revenue (RMB) 366,184,498.90 694,598,218.47 -47.28%
Net profit attributable to the
listed company’s shareholders 145,128,330.14 132,447,122.14 9.57%
(RMB)
Net profit attributable to the
listed company’s shareholders
17,139,162.56 131,437,988.58 -86.96%
before exceptional gains and
losses (RMB)
Net cash generated from/used
-548,115,143.34 -285,540,751.46 -91.96%
in operating activities (RMB)
Basic earnings per share
0.1435 0.1309 9.63%
(RMB/share)
Diluted earnings per share
0.1435 0.1309 9.63%
(RMB/share)
Weighted average return on
3.66% 3.47% 0.19%
equity (%)
30 June 2022 31 December 2021 Change (%)
Total assets (RMB) 5,753,479,367.61 6,182,498,050.43 -6.94%
Equity attributable to the
listed company’s shareholders 3,996,719,159.82 3,938,260,291.97 1.48%
(RMB)
V Accounting Data Differences under Chinese Accounting Standards (CAS) and
International Financial Reporting Standards (IFRS) and Foreign Accounting Standards
1. Net Profit and Equity Differences under CAS and IFRS
Applicable □ Not applicable
Unit: RMB
Net profit attributable to the listed company’s Equity attributable to the listed company’s
shareholders shareholders
H1 2022 H1 2021 Ending amount Beginning amount
Under CAS 145,128,330.14 132,447,122.14 3,996,719,159.82 3,938,260,291.97
Adjusted as per IFRS
Under IFRS 145,128,330.14 132,447,122.14 3,996,719,159.82 3,938,260,291.97
2. Net Profit and Equity Differences under CAS and Foreign Accounting Standards
□ Applicable Not applicable
No such differences for the Reporting Period.
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
3. Reasons for Accounting Data Differences Above
□ Applicable Not applicable
XI Exceptional Gains and Losses
Applicable □ Not applicable
Unit: RMB
Item Amount Note
Gain or loss on disposal of non-current
Income from disposal of interest in
assets (inclusive of impairment 163,352,077.77
allowance write-offs) subsidiary
Government subsidies charged to current
profit or loss (exclusive of government
subsidies consistently given in the
400,232.43 Government grants received
Company’s ordinary course of business
at fixed quotas or amounts as per
government policies or standards)
Gain or loss on debt restructuring 2,489,520.46 Debt restructuring income
Gain or loss on fair-value changes on
held-for-trading financial assets and
liabilities & income from disposal of
held-for-trading financial assets and Change in fair value of monetary fund
5,123,349.63
liabilities and available-for-sale financial investments and return on investment
assets (exclusive of the effective portion
of hedges that arise in the Company’s
ordinary course of business)
Non-operating income and expense other
506,908.18
than the above
Less: Income tax effects 42,968,022.12
Non-controlling interests effects
914,898.77
(net of tax)
Total 127,989,167.58
Details of other gains and losses that meet the definition of exceptional gain/loss:
□ Applicable Not applicable
No such cases for the Reporting Period.
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the Explanatory Announcement
No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss Items:
□ Applicable Not applicable
No such cases for the Reporting Period.
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Part III Management Discussion and Analysis
I Principal Activity of the Company in the Reporting Period
(I) Industry review for the Reporting Period
In the first half of 2022, the international environment tended to be more complex and severe. The spread of
Covid-19 was frequent and sporadic in China. Various sudden unexpected factors caused a decline in both
supply and demand, leading to a slowdown in economic growth. Under the effective implementation of a
package of policy measures to stabilize the economy, China's economy withstood the pressure and achieved
positive growth in the second quarter. In terms of the industry, under the premise of insisting on the position
that houses are for living in, not for speculating on, localities implemented differentiated housing policies based
on city-specific policies, but market expectations failed to make a directional change. Customers with a rigid
demand were still in a strong wait-and-see mood. No significant recovery was seen in the activity of real estate
transactions.
(II) Review of the Company’s operations in the Reporting Period
1. Focusing on the leadership of Party building, the Company newly strengthened the Party building
The Party Committee of the Company insisted on arming mind, guiding practice and promoting work with Xi
Jinping Thought on Socialism with Chinese Characteristics for a New Era. The Party Committee enriched and
expanded the forms and carriers of learning and education, and orderly promoted the normalization and
institutionalization of the "First Topics" learning of the Party organizations and the study of the theoretical
study center group. Also, it further established the "Four Consciousnesses", enhanced the "Four-sphere
confidence", and ensured the "Two Upholds". During the Reporting Period, the Company held 11 (enlarged)
meetings of the Party Committee. All levels of Party organizations in the system carried out four (enlarged)
meetings of theoretical study of the theoretical study center group, 126 sessions of "Three Sessions and One
Class", and 126 sessions of "First Topics" learning.
The implementation of the responsibilities for Party building was strengthened. The Party building brand
creation activity of "One Brand for One Enterprise" was continuously promoted. A debriefing review meeting
on the Party building of the grass-roots Party organization secretary was held, and a letter of responsibility for
Party building goals was signed with the grass-roots Party organizations. The centralized election of seven Party
branches affiliated to the system was completed to allocate leadership team members of the Party branches and
optimize the construction of the grass-roots Party organizations. The regular development of the practical
activity of "I do practical things for the masses" was promoted, and the annual plan for people's livelihood was
formulated and implemented.
The constraint of strict governance of the Party was enhanced. A list of key tasks for development of clean
and honest Party conduct and anti-corruption work of SPG in 2022 was formulated to ensure the joint
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
arrangement, implementation, inspection and assessment. The key points of supervision in 2022 were prepared
to decompose tasks layer by layer. The responsibilities of the person responsible for the secondary-level Party
organization as the "first responsible person" for development of clean and honest Party conduct were defined.
Other members were promoted to fully perform "one position and two responsibilities". Honesty learning and
education was carried out from multiple perspectives and levels to further consolidate the ideological line of
defense for honesty and self-discipline.
2. Focusing on development projects, the Company achieved new progress in the core business
Project construction. First, the construction of SPG Guangmingli project was promoted in an orderly manner.
As at the end of June, 196 supporting piles were completed for the project, accounting for approximately 45%
of the total number of supporting piles. Earthworks were transported by 27,400 cubic meters, accounting for
approximately 15% of the total volume of earthworks. Second, Linxinyuan project: The framework of buildings
1, 2, 5 and 8 has been completed by nearly 70%. Buildings 3, 4, 6, and 7 have been completed by 50%. As at
the end of July, the structural capping has been completed for Linxinyuan Phase I.
Real estate sales. The Company strengthened project promotion and customer development through multiple
channels, and accelerated the pace of destocking. In the first half of the year, a total of 176 units were sold in
initial subscription, and the sales area increased by 12,000 square meters.
3. Focusing on improving quality and efficiency, the Company enhanced new impetus for corporate
development
In the Reporting Period, the Company completed the change of business registration of equity transfer of
Shenzhen Property Management, and basically completed the transfer of assets, business and personnel. It
completed the transfer of Yunnan Kunpeng Air Service Co., Ltd. and collected equity transfer funds. In terms of
the cleanup of zombie companies, the Company completed the cancellation of Shenzhen Special Economic
Zone Real Estate (Group) Guangzhou Property and Estate Co., Ltd. and the revocation of registration of Hong
Kong Qiyi Co., Ltd. QiLu Co., Ltd. successfully completed the first gazette of the revocation of registration. For
the liquidation of Guangdong Fengkai County Lianfeng Cement Manufacturing Co., Ltd., in-depth
communication has been carried out with relevant parties on the signing of the liquidation resolution. Great
Wall Estate Co., Inc. (U.S.) has completed the selection and engagement of legal services and land sales
intermediaries and initiated the land listing for sale. Petrel Hotel completed a series of tasks such as signing the
lease contract with Topchain Link, handing over the venue, and entering the venue for decoration, and
successfully realized the tourism transformation.
4. Focusing on emerging industries, the Company made new explorations for future development
Guided by the action plan for improving the quality of listed companies, the Company relied on the platforms in
the SASAC system to build a collaborative working mechanism with multi-subject participation. The Company
made studies and demonstrations of new industry markets, and actively expanded new profit growth points. It
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
intended to cooperate with the capital platforms in the SIHC system to actively explore industrial fund
cooperation plans and leverage social capital to gradually set foot in strategic emerging industries.
5. Focusing on safe production, the Company newly consolidated the safety barrier
First, the work requirements of "co-responsibility of the Party and government, one position and two
responsibilities, and accountability for negligence of duty" were implemented. The Company continued to
inspect and rectify potential safety production hazards, revised the documents for the safety production
management system, and improved the emergency mechanism. It solidly carried out safety production
inspection, "safety production month", emergency drills and other safety production activities to
comprehensively consolidate the safety foundation. Second, while performing the tasks for the regular epidemic
prevention and control, the Company actively responded to the call of the superiors by assigning 23 employees
to come to the frontline of the epidemic prevention and control, and donating RMB54,000 worth of anti-
epidemic materials to Nanhu Street in Shenzhen. The government's rent reduction and exemption policy was
strictly implemented. The Company reduced and exempted rent of more than RMB20 million, contributing the
"SPG strength" to the epidemic prevention and control and the resumption of work and production in Shenzhen.
6. Focusing on guarantee services, the Company newly maintained the corporate stability
The Company renewed the liability insurance for directors, supervisors and senior managers in 2022 to provide
necessary guarantee for the performance of duties by directors, supervisors and senior managers of the
Company. It purchased critical illness insurance and group accident supplementary medical insurance for
employees to enhance employees' ability to resist risks. According to the needs of business development, 11
urgently needed positions were recruited. The Company actively carried out project financing, completed the
development loan of RMB500 million for Chuanqi Real Estate Development, and effectively guaranteed the
project development and operation. It successfully launched the new OA system, which effectively improved
the office efficiency of employees. It also properly responded to all kinds of complaint petitions as well as
events affecting social stability, which created a good atmosphere for the stable corporate operation.
7. Focusing on internal control and internal audit, the Company newly strengthened the operations
management
According to the annual letter of responsibility for operations management and work points, the Company
carried out unified arrangement and implementation supervision of the completion of business indicators and
key tasks, and meeting arrangements every month. The supervision of internal audit was intensified. The
Company carried out audit of assessment of total remuneration of affiliated companies, special audit of
cooperation projects and contract review, with the contract review rate reaching 100%. 20 procurement tenders
were completed in a standardized manner. The pre-settlement reduction rate of major projects was 11%.
Jianbang Group streamlined the project management system, which effectively improved the management
efficiency.
The Company is subject to the information disclosure requirements for the real estate industry in the Disciplinary and Regulatory
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Guideline No. 3 of the Shenzhen Stock Exchange for Listed Companies—Industry-specific Information Disclosure.
New additions to the land bank:
Considerati
Floor area Total land on of the
Name of How the The
Planned Site area with plot price Company’s
land lot or Location land is Company’s
use of land （㎡） ratio (RMB’0,00 interest
project obtained interest
（㎡） 0) (RMB’0,00
0)
Cumulative land bank:
Floor area available for
Name of project/area Site area（0,000 ㎡） Floor area（0,000 ㎡）
development（0,000 ㎡）
Xinfeng Building in Shantou 0.59 2.66 2.66
Linxinyuan Phase II 2.57 7.72 7.72
Linxinyuan Phase III 4.31 9.57 9.57
Linxinyuan Phase IV 3.23 6.45 6.45
Total 10.70 26.40 26.40
Development status of major projects:
Floor
Cum
Planne area Expec
Time ulativ Cumu
d floor compl ted
for Site ely lative
Name The % area area eted in total
comm % comp invest
City/r of Locati Statu Compan deve with the invest
encem construc （ leted ment
egion projec on s y’s lope plot Curre ment
ent of ted ㎡ ratio nt
floor (RMB
t interest d (RMB
constr ） area ’0,000
（㎡ Period ’0,000
uction （㎡ )
） （㎡ )
）
）
Fra
mew
Linxin 11
ork
Huizh yuan Huiya 64,2 159,76 115,7 101,8
in 51.00% June 85% 85.00%
ou Phase ng 78 1 50 91
cons 2021
I
truct
ion
Foun
Guan datio 19
SPG
Shenz gming n pit 100.00 Januar 10,7 151,7 100,4
Guang 4% 4.00% 53,605
hen Distri bein % y 21 58 22
mingli
ct g 2022
built
Sales status of major projects:
Pre-
Floor Pre-
sale/sa
Cumul area Floor sale/sa
les
Floor Floor atively pre- area les
revenu Cumul
area area pre- sold/so settled revenu
e
The with availab sold/so ld in atively in the e
Name genera
City/re Locati Stat Compan settled settled
of plot le for ld the te in Curren
gion on us y’s ratio sale floor Curren
floor
t in the
project the area
interest Curren
（㎡ （㎡ area t Curren Period
(㎡) t
） ） （㎡ Period t （㎡
Period
） （㎡ Period ） (RMB’
） (RMB’
0,000)
0,000)
Chuan Rea
Luohu
Shenz qi dy
Distric 100.00% 55,727 32,857 32,511 71 506 32,303 2,291 14,636
hen Dongh for
t
u sale
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Mingy
uan
Longg Rea
Shenz Cuilin ang dy
100.00% 60,111 56,137 52,683 714 1,940 51,969
hen yuan Distric for
t sale
Chaoy Rea
Tianyu
Shanto ang dy 153,47 160,37 117,34
ewan 100.00% 2,881 1,603 99,974 7,450 3,822
u Distric for 0 2 3
Phase I
t sale
Tianyu Chaoy Rea
Shanto ewan ang dy 127,77 137,05
100.00% 23,935 6,931 3,914 19,756 8,239 4,297
u Phase Distric for 0 9
II t sale
Huiya
Linxin On
Huizh ng 159,76 159,76
yuan pre- 51.00% 1,904 1,060 1,185
ou Distric 1 1
Phase I sale
t
Rental status of major projects:
Cumulative
Name of The Company’s Rentable area Average
Location Use rented area
project interest （㎡） occupancy rate
（㎡）
Real Estate Shenzhen Commercial
100.00% 3,413.88 3,413.88 100.00%
Mansion
North Block of Shenzhen Commercial
Guoshang 100.00% 4,819.71 4752.98 98.62%
Mansion
Petrel Building Shenzhen Commercial 100.00% 22,475.47 22,475.47 100.00%
SPG Plaza Shenzhen Office building 100.00% 61015.82 34505.47 56.55%
SPG Plaza Shenzhen Commercial
100.00% 19886.3 16123.49 81.08%
Podium
Wenjin Garden Shenzhen Commercial 100.00% 3,531.60 3,531.60 100.00%
Primary land development:
□ Applicable Not applicable
Financing channels:
Financing cost Maturity structure
Ending balance of
Financing channel range/average
financings Within 1 year 1-2 years 2-3 years Over 3 years
financing cost
Development strategy and operating plan for the coming year:
The year 2022 sees the convening of the 20th National Congress of the Communist Party of China. It is also a
crucial year for the Company to deepen its reform. The Company will resolutely implement the decisions and
deployment of the CPC Shenzhen Municipal Committee, the Shenzhen Municipal People’s Government, the
Municipal SASAC, and SIHC. The “Dual Zone” construction in Shenzhen and the policy of deepening the
reform of state-owned assets and enterprises have brought strategic opportunities for the Company to plan for
projects reserves and stabilize operation and management. Correspondingly, the Company will strive to seek
new breakthroughs in its reform and development.
(I) Focus on improving the quality of Party building
In the second half of the year, guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a
New Era, the Party Committee of the Company will continue to organize the study, publicity and
implementation of the spirit of the 20th National Congress of the Communist Party of China and the spirit of the
13th Guangdong Provincial Congress of the Communist Party of China, focus on the "First Topics" learning and
the study of the theoretical study center group, and strengthen the building of the corporate leadership team.
Based on the corporate reality, it will deepen the Party building innovation activity of "One Brand for One
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Enterprise", continue to promote the standardization construction of grass-roots Party organizations and the
team building of Party members, and strive to push the Party building to a new level.
(II) Focus on promoting the prudent operation of development as the core business
First, project construction will be focused: The Company will ensure that the development of Guangmingli
project and Linxinyuan project are implemented as planned. Second, project marketing will be focused: The
Company will make breakthrough innovation in the marketing model and strengthen sales promotion, striving
to complete the annual sales task.
(III) Focus on promoting future development and improving quality and efficiency
First, future development: The Company will strengthen the communication and coordination with the capital
platforms in the system, focus on promoting the research and implementation of the industrial investment fund
plan, and continue to explore the future direction and path for corporate development. Second, improvement of
quality and efficiency: The Company will continue to promote the land sale of Great Wall Estate Co., Inc.
(U.S.), the revocation of registration of QiLu Co., Ltd., the liquidation of Guangdong Fengkai County Lianfeng
Cement Manufacturing Co., Ltd., and the cleanup of zombie companies such as Fresh Peak Investment Ltd. and
Barenie Co. Ltd. It will implement follow-up tasks such as the audit of the profit of Shenzhen Property
Management during the transition period and the collection of the final payment of equity transfer. Close
attention will be paid to the special check of receivables to earnestly safeguard the interests of the Company.
(IV) Focus on promote security protection in a standardized and orderly manner
First, the Company will define the entity responsibility for safety production, carry out closed-loop rectification
of problems and potential hazards found in the third-party safety inspection organized by the superiors, and
prepare for the third-party inspection. It will carry out in-depth inspection and rectification of potential safety
production hazards and review of problems, and focus on the safety of engineering construction and self-built
house structure to eliminate potential safety hazards. Second, by adhering to the regular epidemic prevention
and control, the Company will refine measures and strengthen implementation to ensure that the situation of
epidemic prevention and control is stable. Third, the Company will coordinately focus on stability maintenance
of petitioning and public opinion monitoring of the Group to create a harmonious and stable environment for
corporate development.
Provision of guarantees for homebuyers on bank mortgages:
Applicable □ Not applicable
Guarantee amount
Project Guarantee period Note
(RMB’0,000)
Cuilinyuan Until the property ownership certificate is registered as
2,697.86
collateral and handed over to bank for keeping
Chuanqi Donghu Until the property ownership certificate is registered as
2,228.92
Mingyuan collateral and handed over to bank for keeping
Tianyuewan Until the property ownership certificate is registered as
30,898.12
collateral and handed over to bank for keeping
Until the property ownership certificate is registered as
Linxinyuan 377.00
collateral and handed over to bank for keeping
Total 36,201.90
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 major source of investment):
Applicable □ Not applicable
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
As % of As % of the Compatibilit
Investment amount total peak of Cumulativ Disinvest y of actual
Project Type of investor
(RMB) investm project e returns ment investment
ent funds and returns
Director, supervisor
Linxinyua or senior
8,950,000.00 39.25% 0.90% 0.00 N/A N/A
n management of the
Company
II Core Competitiveness Analysis
As a pioneer of real estate development enterprises in Shenzhen, the Company has created a number of "first
places" in the history of real estate development in China. For example, the first to use the paid state-owned land,
the first to introduce the foreign investment for the cooperative land development, the first to raise development
funds by means of pre-sale of buildings, the first to carry out public bidding for construction projects in
accordance with international practices, the first to set up a property management company to the buildings and
residences developed in an all-rounded manner, the first to win the bid in the auction of land use rights held in the
Shenzhen Special Economic Zone, etc.
Over the past 40 years, the company has developed more than 100 high-rise buildings, 500 multi-storey residential
buildings, and 400 garden villas, with a cumulative building area of more than 4 million square meters. It has paid
great efforts to the establishment of a modern enterprise HR management system and works hard in building a
professional and high-quality development team. It also keeps improving the management mechanism and
processes for project development. As a result, its planning, construction, cost control, sales ability and brand
image have been effectively improved. More importantly, its main business operation ability and core
competitiveness have been greatly enhanced.
In 2022, the Company was granted the titles of “Socially Responsible Company” and “Honest Company” in
the real estate world of Shenzhen.
III Core Business Analysis
Overview:
See contents under the heading “I Principal Activity of the Company in the Reporting Period” above.
Year-on-year changes in key financial data:
Unit: RMB
H1 2022 H1 2021 Change (%) Main reason for change
Decreased revenue from
property sales and offering
Operating revenue 366,184,498.90 694,598,218.47 -47.28% of rent reductions and
exemptions during the
COVID-19 pandemic
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
according to the relevant
policies
Cost of sales 239,885,272.72 331,975,678.55 -27.74%
Selling expense 10,726,031.33 16,815,600.06 -36.21% Decline in property sales
Administrative expense 33,013,300.52 40,299,584.22 -18.08%
Decreased bank balances
Finance costs -3,601,554.32 -16,414,487.59 78.06% and interest income from
bank deposits
Income tax expense 59,036,968.69 47,841,099.11 23.40%
Net cash generated Payment of land value-
from/used in operating -548,115,143.34 -285,540,751.46 -91.96% added tax for the Chuanqi
activities Donghu Mingyuan project
Substantial payment for
Net cash generated equity acquisition and
from/used in investing 255,526,904.00 -1,750,516,694.28 -114.60% purchase of monetary fund
activities in the same period of last
year
Receipt of borrowing from
Net cash generated non-controlling
from/used in financing 243,164,282.22 -100.00% shareholder by project
activities company in the same
period of last year
Substantial payment for
equity acquisition and
Net increase in cash
-292,337,340.43 -1,792,911,046.07 -83.69% purchase of monetary fund
and cash equivalents
in the same period of last
year
Major changes in the profit structure or sources of the Company in the Reporting Period:
Net profit largely came from recurrent business operations in the same period of last year, while in the current period, exceptional
gains such as income from the disposal of subsidiary were the primary sources of net profit.
Breakdown of operating revenue:
Unit: RMB
H1 2022 H1 2021
As % of total As % of total Change (%)
Operating revenue operating revenue Operating revenue operating revenue
(%) (%)
Total 366,184,498.90 100% 694,598,218.47 100% -47.28%
By business segment
Real estate 228,409,271.55 62.38% 479,956,940.17 69.10% -52.41%
Construction
103,248,547.59 28.20% 107,167,710.21 15.43% -3.66%
service
Rental service 16,729,533.24 4.57% 30,225,726.14 4.35% -44.65%
Property
management 11,075,828.00 3.02% 70,348,672.05 10.13% -84.26%
service
Other 6,721,318.52 1.84% 6,899,169.90 0.99% -2.58%
By product
Housing units 223,833,107.28 61.13% 479,562,902.07 69.04% -53.33%
Shops and parking
4,576,164.27 1.25% 394,038.10 0.06% 1,061.35%
place
Other 137,775,227.35 37.62% 214,641,278.30 30.90% -35.81%
By geographic segment
Guangdong
318,380,165.32 86.95% 635,008,108.14 91.42% -49.86%
Province
Other regions in 47,804,333.58 13.05% 59,300,114.59 8.54% -19.39%
16
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
China
Overseas 0.00 0.00% 289,995.74 0.04% -100.00%
Operating division, product category or operating segment contributing over 10% of operating revenue or operating profit:
Applicable □ Not applicable
Unit: RMB
Gross YoY change in YoY change in YoY change in
Operating revenue Cost of sales profit operating cost of sales gross profit
margin revenue (%) (%) margin (%)
By business segment
Real estate 228,409,271.55 104,297,609.19 54.34% -52.41% -24.24% -16.98%
Construction
103,248,547.59 101,006,700.90 2.17% -3.66% -3.39% -0.27%
service
Rental service 16,729,533.24 18,895,147.63 -12.94% -44.65% 8.05% -55.09%
Property
management 11,075,828.00 10,769,205.28 2.77% -84.26% -84.19% -0.41%
service
Other 6,721,318.52 4,916,609.72 26.85% -2.58% 18.15% -12.83%
By product
Housing units 223,833,107.28 100,408,666.61 55.14% -53.33% -26.94% -16.20%
Shops and
4,576,164.27 3,888,942.58 15.02% 1,061.35% 1,541.47% -24.86%
parking place
Other 137,775,227.35 135,587,663.53 1.59% -35.81% -30.22% -7.89%
By geographic segment
Guangdong
318,380,165.32 193,072,432.97 39.36% -49.86% -29.22% -17.69%
Province
Other regions
47,804,333.58 46,812,839.75 2.07% -19.39% -20.92% 1.90%
in China
Overseas -100.00% -100.00%
Main business data of the most recent period restated according to changed statistical caliber for the Reporting period
□Applicable Not applicable
Any over 30% YoY movements in the data above and why:
□Applicable Not applicable
IV Non-Core Business Analysis
□Applicable Not applicable
V Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
End of Reporting Period End of the same period of last year Increas
e/decre Notes to
Proportion to Proportion to total ase in significant
Amount Amount proport changes
total assets assets
ion
Payment of
land VAT of
Monetary Donghu
326,915,586.65 5.68% 564,358,824.63 9.13% -3.45%
assets Mingyuan in
the current
period
17
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Accounts
71,948,944.71 1.25% 61,048,785.11 0.99% 0.26%
receivable
Development
Inventories 4,070,379,390.87 70.75% 4,034,933,562.62 65.26% 5.49%
of projects
Investment
578,827,312.45 10.06% 588,865,777.16 9.52% 0.54%
property
Long-term
equity 272,168.28 0.00% 272,168.28 0.00% 0.00%
investments
Fixed assets 22,677,228.99 0.39% 23,920,424.55 0.39% 0.00%
Right-of-use
298,924.34 0.01% 365,351.97 0.01% 0.00%
assets
Short-term
56,831,235.17 0.99% 50,440,116.24 0.82% 0.17%
borrowings
Contract
45,104,910.10 0.78% 199,965,490.08 3.23% -2.45%
liabilities
Lease liabilities 90,440.36 0.00% 125,920.77 0.00% 0.00%
Accounts
116,304,350.46 2.02% 141,447,559.24 2.29% -0.27%
payable
Payment of
land VAT of
Donghu
Taxes payable 306,596,230.20 5.33% 600,540,872.48 9.71% -4.38%
Mingyuan in
the current
period
Other payables 647,772,178.12 11.26% 581,377,415.64 9.40% 1.86%
2. Major Assets Overseas
□Applicable Not applicable
3. Assets and Liabilities at Fair Value
Applicable □ Not applicable
Unit: RMB
Gain/loss
on fair- Cumulative Impairment
Purchased
value fair-value allowance Sold in the
Beginning in the Other Ending
Item changes in changes for the Reporting
amount Reporting changes amount
the charged to Reporting Period
Period
Reporting equity Period
Period
Financial
assets
1. Held-
for-trading
financial
assets 514,024,71 4,963,730.6 114,840,38 404,148,06
(excluding 0.91 2 0.99 0.54
derivative
financial
assets)
4.
Investment
36,322,704. 5,945,521.7 22,490,765. 19,777,460.
s in other
equity 33 3 41 65
instruments
18
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Subtotal of
550,347,41 4,963,730.6 5,945,521.7 137,331,14 423,925,52
financial
assets 5.24 2 3 6.40 1.19
Total of the 550,347,41 4,963,730.6 5,945,521.7 137,331,14 423,925,52
above 5.24 2 3 6.40 1.19
Financial
0.00 0.00
liabilities
Other change
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 Reasons
Discount of accounts
56,831,235.17 Pleged for short-term borrowings
receivable
Inventories 965,000,000.00 Lands mortgaged for project development loans
Total 1,021,831,235.17 --
VI Investment Analysis
1. Total Investments Made
□Applicable Not applicable
2. Significant Equity Investments Made in the Reporting Period
□Applicable Not applicable
3. Significant Non-equity Investments Ongoing in the Reporting Period
□Applicable Not applicable
4. Financial Investments
(1) Securities Investments
□Applicable Not applicable
No such cases in this Reporting Period
(2) Investment in Derivative Financial Instruments
□Applicable Not applicable
No such cases in this Reporting Period
5. Use of Funds Raised
□Applicable Not applicable
19
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
No such cases in this Reporting Period
VII Sale of Major Assets and Equity Interests
1. Sale of Major Assets
□Applicable Not applicable
No such cases in this Reporting Period
2. Sale of Major Equity Interests
Applicable □ Not applicable
Am
ount
cont
ribut
ed
by
Amount the
contribu sale
Re
ted by to
lat Execu
the net
ed ted as
equity inco
- Relation Own sched
interests me Index
D pa ship ershi uled Dis
Equi to net of to
Cou at Selling Pricin rty between p or not, clo
ty income Effect of the the disclo
nter e price g tra counterp fully if not, sur
inter of the sale on the Com sed
part of (RMB’0 princi ns arty and trans state e
ests Compan Company pany infor
y sal ,000) ple ac the ferre reason dat
sold y from as a matio
e tio Compan d or and e
period- perc n
n y not action
beginnin enta
or s
g to date ge
no taken
of sale of
t
(RMB’0 the
,000) Com
pany
’s
net
inco
me
(%)
This transaction The Shenzhe Anno
She
is in line with transa n unce
nzh 100
ction Internati ment
en % of the Company’s
price onal on the
Inte equi development is Trade Progr
rnat ty strategies and is deter Center ess of
iona inter
conducive to the mined Property the
l ests
Tra of
11 Company’s based Manage
15
Relate
Fe further on the ment d-
de She Fe
br net Co., party
Cen nzhe 19,667.6 optimization 84.4 Ye bru
ua -170.85 asset Ltd. Yes Yes Trans
ter n 7 and adjustment 2% s ary
ry valuati (hereina action
Pro Prop of its industry 20
20 on fter regard
pert erty 22
22 structure, assess referred ing
y Man
enrichment of ed by to as the
Ma age
capital reserves, the “ITC Transf
nag men
evalua Property er of
eme t expansion of
tion Manage 100%
nt Co., new profit agenc ment”) of
Co., Ltd. growth areas, y on is a Equit
Ltd. and continuous the wholly- y
20
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
improvement of base owned Intere
its quality. In date subsidia sts of
of 30 ry of Shenz
2022, the
June ShenZh hen
counterparty has 2021. en Prope
paid 90% Properti rty
(RMB177,009,0 es & Mana
00) of the equity Resourc geme
transfer es nt
payment to the Develop Co.,
ment Ltd.
Group in (Group) (No.:
accordance with Ltd. 2022-
the equity “hereina 001)
transfer fter disclo
agreement. referred sed on
After the equity to as www.
“SZPR cninfo
transfer, the
D” and .com.
Company both cn
derecognized SZPRD
the said equity and the
and confirmed Compan
the investment y are
majority
income of
-owned
RMB163,352,1 subsidia
00 in ries of
consolidated Shenzhe
financial n
statements. The Investm
ent
matter has a
Holding
positive impact s Co.,
on the Company Ltd.
cash flow and Thus, an
operating results associati
in 2022. on
relations
hip is
formed.
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 Main
Company business Registered Operating Operating
p with the Total assets Net assets Net profit
name scope capital revenue profit
Company
Guangdong
Jianbang - - -
Developme
Group 2,800,000.0 1,280,229,8
Subsidiary nt of real 11,627,303. 4,071,985.3 4,115,342.3
(Huiyang) 0 14.39
estate 66 1 1
Industrial
Co., Ltd.
Shenzhen
SPG
Developme
Chuanqi 30,000,000. 1,005,698,6 994,342,51
Subsidiary nt of real -31,018.76 -31,018.76
Real Estate 00 13.00 2.39
estate
Developme
nt Co., Ltd.
Shenzhen Subsidiary Developme 30,000,000. 175,115,54 120,937,15 984,161.91 - -
21
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
SPG nt of real 00 3.31 8.53 3,807,820.2 3,807,818.9
Longgang estate 8 0
Developme
nt Co., Ltd.
Shantou
SEZ,
Wellam
Developme
FTY, 91,226,120. 158,268,01 122,473,68 -
Subsidiary nt of real 858,036.19 -87,353.19
Building 44 7.90 2.79 116,470.93
estate
Developme
nt, Co.,
Ltd.
Shantou
Huafeng Developme
80,000,000. 881,155,78 21,097,941. 81,186,381.
Real Estate Subsidiary nt of real 78,891.89 59,168.92
Developme estate 00 1.21 37 08
nt Co., Ltd.
Great Wall -
2,051,146.0 18,477,637. - -
Estate Co., Subsidiary Lease 85,436,179.
Inc. (U.S.) 0 42 505,165.93 505,165.93
35
Shenzhen Installation
Zhentong and 10,000,000. 433,122,89 19,873,575. 104,462,96
Subsidiary 51,215.55 51,215.55
Engineerin constructio 00 0.69 22 5.25
g Co., Ltd. n
Shenzhen - -
Property
Property 7,250,000.0 91,865,021. 33,324,622. 9,750,410.1
Subsidiary manageme 1,632,117.5 1,708,521.8
Manageme 0 54 23 5
nt 0 0
nt Co., Ltd.
Shenzhen Lease and - -
Petrel property 30,000,000. 43,096,625. 36,214,131. 4,903,667.1
Subsidiary 3,230,165.6 3,232,056.6
Hotel Co., manageme 00 81 59 6
Ltd. nt 4 3
Shenzhen
Huazhan
Constructio
Constructio 8,000,000.0 10,784,124. 10,464,036. 1,898,997.9
Subsidiary n 424,971.25 428,815.42
n 0 99 33 3
supervision
Supervisio
n Co., Ltd.
Investment - - -
Xin Feng
and 390,732,06
Enterprise Subsidiary 502,335.00 139,428,61 5,725,610.3 5,725,610.3
manageme 3.68
Co., Ltd. 5.69 3 3
nt
Subsidiaries obtained or disposed in the Reporting Period:
Applicable □ Not applicable
Way of gaining and disposing Influence on overall production and
Name
subsidiaries operation as well as performance
Shenzhen Property Management Co., Refer to Note VII Sale of Major Assets
Negotiating transfer
Ltd. and Equity Interests
Information about major majority- and minority-owned subsidiaries:
1. In May 2021, through the payment of consideration of RMB450 million, the Group acquired 51% equity interest in Guangdong
Jianbang Group (Huiyang) Industrial Co., Ltd. The project company will develop the Linxingyuan Project with a gross site area of
200,000 square meters and a total capacity building area of 0.4 million square meters, which will be developed in four phases and
is expected to achieve revenue of RMB6 billion and total profit of approximately RMB1.8 billion from 2023 to 2025. The Group
has control over the project company, which has been included in the scope of consolidation since May 2021. The Linxinyuan
Project Phase I was opened to presale in December 2021 with the presale contract amount of RMB11.85 million for H1 2022.
2. The subordinate subsidiaries engaged in real estate development also include: Shenzhen SPG Chuanqi Real Estate Development
Co., Ltd., Shenzhen SPG Longgang Development Co., Ltd., Shantou SEZ, Wellam FTY, Building Development, Co., Ltd. and
Shantou Huafeng Real Estate Development Co., Ltd. The Guangmingli project developed by Shenzhen SPG Chuanqi Real Estate
22
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Development Co., Ltd. started in January 2022 and is still in the development and construction stage. The Cuilinyuan project
developed by Shenzhen SPG Longgang Development Co., Ltd. realized the sales amount of RMB19.4 million but not meeting the
condition of income recognition yet. Jinyedao and YuejingDongfang developed by Shantou SEZ, Wellam FTY, Building
Development, Co., Ltd. left a few amount of remaining buildings for sale. And Shantou Huafeng Real Estate Development Co.,
Ltd. was responsible for the development of Tianyuewan project (divided into Phase I and Phase II). Tianyuewan Phase I was
opened for sale in October 2016 and completed in December 2019. The Phase II started construction in November 2018 and was
completed at the end of June 2021. The overall sales progress is relatively slow with an accumulated sales rate of about 77% for
Phase I and 18% for Phase II.
3. Shenzhen Property Management Co., Ltd was engaged in the industry of property management. The Group signed the equity
transfer agreement with Shenzhen International Trade Center Property Management Co., Ltd. in 2021 and the equity transfer has
been completed in 2022. Since then, Shenzhen Property Management Co., Ltd. will no longer be included in the scope of the
Group’s consolidated financial statements. For details, please refer to Note VII Sale of Major Assets and Equity Interests.
4. Shenzhen Zhentong Engineering Co., Ltd. was engaged in the business of building installation and maintenance with the
operating revenues of RMB104 million and of 28.53% to the operating revenues of the Company for H1 2022.
5. The net profit of Xin Feng Enterprise Co., Ltd. for H1 2022 was RMB-5.73 million, mainly due to the changes of exchange rate
and because it conducts no business.
6. The net profit of Shenzhen Petrel Hotel Co., Ltd. for H1 2022 was RMB-3.23 million, mainly due to the reduction of lease
income affected by the pandemic.
IX Structured Bodies Controlled by the Company
□Applicable Not applicable
X Risks Facing the Company and Countermeasures
1. Macroeconomic risks and countermeasures
The real estate industry has a greater correlation with the macroeconomy and is more influenced by the
macroeconomic cycle. Since this year, the international environment has become more complex and severe, and
the world economic growth is obviously slowing down. Against the background of the rising risk of stagflation in
the global economy, there are still many unstable and uncertain factors in the recovery of the domestic economy.
The Company will continue to pay attention to the international and domestic macroeconomic situation and
actively adjust its business strategy.
2. Industry regulation risks and countermeasures
Under the guidance of "housing is for living in, not for speculation", the market is entering a period of
adjustment and the industry is entering a stage of profound changes. The development of the Company is
undergoing new tests. The Company will continue to deepen its research on industry policies, follow the
national strategies, innovate its operating model and optimize its development method.
3. Business operating risks and countermeasures
During the Reporting Period, based on the guidance of “housing is for living in, not for speculation”, all over
the country has introduced policies to boost the property market, but relevant policies in first-tier cities have not
been significantly relaxed. The Company will pay close attention to changes in markets and industry policies,
23
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
focus on project construction and real estate sales to strengthen the foundation of the main business. At the
same time, the Company will actively explore new areas and cultivate new business models.
24
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Part IV Corporate Governance
I Annual and Extraordinary General Meeting Convened during the Reporting Period
1. General Meetings Convened during the Reporting Period
Investor
Resolution of
Meeting Type participati Convened date Disclosure date
meeting
on ratio
Resolutions of
2021 Annual
General Meeting
disclosed on China
The 2021 Annual Annual General
63.56% 17 May 2022 18 May 2022 Securities,
General Meeting Meeting
Securities Times,
Ta Kung Pao and
www.cninfo.com.c
n (No.: 2022-018)
2. Extraordinary General Meeting Convened at Request of Preference Shareholders with Resumed
Voting Rights
□Applicable Not applicable
II Change of Directors, Supervisors and Senior Management
□Applicable Not applicable
Name Office title Type Date Reason
Supervisor, Chairman
Wang Jiangtao of the Supervisory Elected 17 May 2022
Committee
Supervisor, Chairman
Li Lian of the Supervisory Left 17 May 2022 Retirement
Committee
Wei Hanping Vice GM Left 7 June 2022 Retirement
III Interim Dividend Plan
□Applicable Not applicable
The Company has no interim dividend plan, either in the form of cash or stock.
IV Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures
for Employees
□Applicable Not applicable
No such cases in the Reporting Period.
25
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Part V Environmental and Social Responsibility
I Major Environmental Issues
Indicate by tick mark whether the Company or any of its subsidiaries is a heavily polluting business identified by the
environmental protection authorities of China.
□Yes No
Administrative penalties imposed for environmental problems during the Reporting Period
Influence on
Rectification
Name Reason Case Result production and
measures
operation
N/A N/A N/A N/A N/A N/A
Other environmental information disclosed with reference to the heavily polluting business
The Company and its subsidiaries are not imposed any administrative penalties for environmental problems during the Reporting
Period.
Measures taken to decrease carbon emission in the Reporting Period and corresponding effects
□Applicable Not applicable
Reason for failure of disclosing other environmental information
The Company and its subsidiaries isn’t a heavily polluting business identified by the environmental protection authorities of China.
II Social Responsibility
While pursuing economic benefits and protecting the interests of shareholders, the Company proactively
fulfilled its social responsibilities demonstrating the Company’s social value and responsibilities. During the
Reporting Period, the Company actively participated in and supported the charity fund-raising activity of
“Joining Hands on Fertility Care, Caring for Families in Need” of Jiabei Community, providing assistance and
financial aids to “families losing the only child or with the only child disabled” and difficult families observing
the family planning in the region, totaling RMB30,000. It timely set up the anti-epidemic teams to join the front
line of epidemic prevention and control with 10 full-time anti-epidemic volunteers and 13 volunteers who
voluntarily enrolled in the community anti-epidemic in the Group. It aided the anti-epidemic work of Nanhu
Street and donated anti-epidemic materials with a total value of more than RMB50,000. At the same time, its
affiliated Petrel Hotel assisted Nanhu Street in providing services for the nucleic acid testing sampling point in
Petrel Plaza and carrying out nucleic acid testing. It undertook the reconstruction of Xiabei Village Primary
School in Longdu Town, Chenghai District, Shantou City and the assistance project caring the study and living
conditions of primary school students in this town (installing air-conditioners for Longdu Central Primary
School). The Company did its best to help market entities tide over difficulties with rent reduction and
exemption of more than RMB20 million for micro, small and medium-sized enterprises. It actively participated
in the special action of consumption poverty alleviation and purchased RMB469,000 of poverty alleviation
products within the Group, making due contributions to promoting rural revitalization.
26
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
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
Type of Date of Term of
Promiso
Commitment commitme Details of commitment commitme commitme Fulfillment
r
nt nt making nt
To avoid horizontal competition,
Shenzhen Investment Holdings Co.,
Ltd. made such a commitment: For the
Company’s existing business that has
horizontal competition with ShenZhen
Properties & Resources Development
(Group) Ltd., Shenzhen Investment
Holdings Co., Ltd. will, within the
scope permitted by laws and
regulations, timely launch one or
several of the following solutions that is
Shenzhe practically feasible, and complete the
n implementation of the relevant
Avoiding
Other commitments Investm solution(s) before 9 November 2024 to 10 Before 9
horizontal
made to minority ent solve the existing horizontal September November Ongoing
competitio
interests Holding competition problem: (1) Solve the 2021 2024
n
s Co., horizontal competition between the two
Ltd. through asset sales or asset
replacement; (2) Solve the horizontal
competition between the two through
equity transfer; (3) Take other measures
that can effectively solve the problem
of horizontal competition. Above
commitment came into force upon the
review and approval on the
shareholders’ meeting of ShenZhen
Properties & Resources Development
(Group) Ltd. (dated 27 September
2021).
Fulfilled on time Yes
Specific reasons for
failing to fulfill
commitments on N/A
time and plans for
next step (if any)
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.
27
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
IV Engagement and Disengagement of Independent Auditor
Are the interim financial statements audited?
□Yes No
The interim financial statements have not been audited.
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.
VIII Legal Matters
Significant lawsuits and arbitrations:
Applicable □ Not applicable
Involved
General Index to
amount Execution of Disclosure
informati Provision Progress Decisions and effects disclosed
(RMB’0,0 decisions date
on information
00)
Shaanxi High
Xi’an Business
People’s
Tourism Company
Limited (hereinafter Court Sold
referred to as “Business all assets of
Business
Company”) had to pay
Company by
for the compensation
RMB36.62 million and auction in
the relevant interest accordance
with laws in
(from 14 September Annual
2004. The
1998 to the payment Report 2021
day) to Xi’an Fresh applicant has
Xi’an received (full text)
Peak Company within 18 March
Project 2,100 No In execution RMB15.20 (No.: 2022-
one month after the 2022
Lawsuit million. Now 006) on
judgment entering into
force. If the Business Business www.cninfo.
Company failed to pay Company has
com.cn
no
in time, it had to pay
executable
double debt interests to
Xi’an Fresh Peak properties
Company for the and Xi’an
Joint
overdue period; ②
Commission
Xi’an Joint on
Commission on
Commerce
Commerce had jointly
has been
28
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
and severally obligation refusing to
of the interests of the execute the
compensation; .③ ruling. It is
Business Company difficult to
shall bear RMB227,500 recover the
of the acceptance fee rest.
and the security fee.
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
XI Major Related-Party Transactions
1. Continuing Related-Party Transactions
□Applicable Not applicable
No such cases in the Reporting Period.
2. Related-Party Transactions Regarding Purchase or Sales of Assets or Equity Interests
□Applicable Not applicable
No such cases in the Reporting Period.
3. Related Transactions Regarding Joint Investments in Third Parties
□Applicable Not applicable
No such cases in the Reporting Period.
4. Amounts Due to and from Related Parties
□Applicable Not applicable
No such cases in the Reporting Period.
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.
29
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
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
Approved on the 69th Meeting of the 7th Board of Directors and the 3rd Extraordinary General Meeting of 2021,
the Company decided to transfer 100% equity interests of Shenzhen Property Management Co., Ltd., the
wholly-owned subsidiary of it, to Shenzhen International Trade Center Property Management Co., Ltd. For
details, please refer to Note VII Sale of Major Assets and Equity Interests in Part III.
Index to announcements on major related-party transactions
Announcement Disclosure time Disclosure website
Announcement on Resolutions of the 69th Meeting of the 7th
Board of Directors (No.: 2021-049), Announcement on the
Related-Party Transaction regarding the Transfer of 100% of 14 December 2021 www.cninfo.com.cn
Equity Interests in Shenzhen Property Management Co., Ltd.
(No.: 2021-050)
Announcement on Progress of the Related-Party Transaction
regarding the Transfer of 100% of Equity Interests in Shenzhen 24 December 2021 www.cninfo.com.cn
Property Management Co., Ltd. (No.: 2021-052)
Announcement on Resolutions of the 3rd Extraordinary General
30 December 2021 www.cninfo.com.cn
Meeting of 2021 (No.: 2021-053)
Announcement on Progress of the Related-Party Transaction
regarding the Transfer of 100% of Equity Interests in Shenzhen 15 February 2022 www.cninfo.com.cn
Property Management Co., Ltd. (No.: 2022-001)
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
30
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
No such cases in the Reporting Period.
2. Major Guarantees
Applicable □ Not applicable
Unit: RMB’0,000
Guarantees provided by the Company as the parent and its subsidiaries for external parties (exclusive of those for subsidiaries)
Disclosu
re date Guarante
Actual Counter
of the Line of Actual Type of Term of Having e for a
guarante Collatera
Obligor guarante guarante occurren guarante guarante guarante expired related
e l (if any)
e line e ce date e e (if any) e or not party or
amount
announc not
ement
Guarantees provided by the Company as the parent for its subsidiaries
Disclosu
re date Guarante
Actual Counter
of the Line of Actual Type of Term of Having e for a
guarante Collatera
Obligor guarante guarante occurren guarante guarante guarante expired related
e l (if any)
e line e ce date e e (if any) e or not party or
amount
announc not
ement
From the
date of
signing
100%
the
equity
guarante
interests
e
of
Shenzhe contract
Shenzhe
n SPG to the
n SPG
Chuanqi date
18 Chuanqi
Real 17 June when all
March 50,000 50,000 Pledge Real Not Not
Estate 2022 guarante
2022 Estate
Develop ed debts
Develop
ment are
ment
Co., Ltd. uncondit
Co., Ltd.
ionally
held by
and
the
irrevoca
Compan
bly paid
y
off in
full.
Total approved line Total actual amount
for such guarantees of such guarantees in
50,000 50,000
in the Reporting the Reporting Period
Period (B1) (B2)
Total approved line Total actual balance
for such guarantees of such guarantees at
at the end of the 50,000 the end of the 50,000
Reporting Period Reporting Period
(B3) (B4)
Guarantees provided between subsidiaries
Disclosu
re date Guarante
Actual Counter
of the Line of Actual Type of Term of Having e for a
guarante Collatera
Obligor guarante guarante occurren guarante guarante guarante expired related
e l (if any)
e line e ce date e e (if any) e or not party or
amount
announc not
ement
31
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Total guarantee amount (total of the three kinds of guarantees above)
Total guarantee line Total actual
approved in the guarantee amount in
50,000 50,000
Reporting Period the Reporting Period
(A1+B1+C1) (A2+B2+C2)
Total actual
Total approved
guarantee balance at
guarantee line at the
50,000 the end of the 50,000
end of the Reporting
Reporting Period
Period (A3+B3+C3)
(A4+B4+C4)
Total actual guarantee amount (A4+B4+C4)
12.51%
as % of the Company’s net assets
Of which:
Compound guarantees
3. Cash Entrusted for Wealth Management
Applicable □ Not applicable
Unit: RMB’0,000
Unrecovered
Unrecovered overdue amount
Type Funding source Amount Undue amount
overdue amount with provision for
impairment
Other Self-funded 130,000 40,414.81 0 0
Total 130,000 40,414.81 0 0
Particulars of cash entrusted for wealth management with single significant amount or low security, bad liquidity, and no capital
preservation
□Applicable Not applicable
Whether there is the case where the principal cannot be recovered at maturity or other case which may cause impairment for
entrusted wealth management
□Applicable Not applicable
4. Other Significant Contracts
□Applicable Not applicable
No such cases in the Reporting Period.
XIII Other Significant Events
□Applicable Not applicable
No such cases in the Reporting Period.
XIV Significant Events of Subsidiaries
□Applicable Not applicable
32
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Part VII Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
Before Increase/decrease (+/-) After
Shares
as
Shares as
divide
dividend
Percentage New nd Subt Percentag
Shares converted Other Shares
(%) issues conver otal e (%)
from capital
ted
reserves
from
profit
1. Restricted shares 0 0.00% 0 0 0 0 0 0 0.00%
1.1 Shares held by the state 0 0.00% 0 0 0 0 0 0 0.00%
1.2 Shares held by state-
0 0.00% 0 0 0 0 0 0 0.00%
own legal person
1.3 Shares held by other
0 0.00% 0 0 0 0 0 0 0.00%
domestic investors
Among which: shares held
0 0.00% 0 0 0 0 0 0 0.00%
by domestic legal person
Shares held by domestic
0 0.00% 0 0 0 0 0 0 0.00%
natural person
1.4 Oversea shareholdings 0 0.00% 0 0 0 0 0 0 0.00%
Among which: shares held
0 0.00% 0 0 0 0 0 0 0.00%
by oversea legal person
Shares held by oversea
0 0.00% 0 0 0 0 0 0 0.00%
natural person
2. Unrestricted shares 1,011,660,000 100.00% 0 0 0 0 0 1,011,660,000 100.00%
2.1 RMB ordinary shares 891,660,000 88.14% 0 0 0 0 0 891,660,000 88.14%
2.2 Domestically listed
120,000,000 11.86% 0 0 0 0 0 120,000,000 11.86%
foreign shares
2.3 Oversea listed foreign
0 0.00% 0 0 0 0 0 0 0.00%
shares
2.4 Other 0 0.00% 0 0 0 0 0 0 0.00%
3. Total shares 1,011,660,000 100.00% 0 0 0 0 0 1,011,660,000 100.00%
Reasons for share changes:
□Applicable Not applicable
Approval of share changes:
□Applicable Not applicable
Transfer of share ownership:
□Applicable Not applicable
33
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Progress on any share repurchase:
□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. Total Number of Shareholders and Their Shareholdings
Unit: share
Total number of ordinary Total number of preference shareholders
shareholders at the period- 61,286 with resumed voting rights at the period- 0
end end (if any) (see Note 8)
Shareholding of ordinary shareholders holding more than 5% shares or the top 10 of ordinary shareholders
Increa Shares in
Restri
se/dec pledge,
Shareho cted
Total ordinary rease Non-restricted marked or
Nature of lding ordina
Name of shareholder shares held at in the ordinary frozen
shareholder percenta ry
the period-end Report shares held Status
ge shares Amo
ing of
held unt
Period shares
Shenzhen Investment State-owned legal
57.19% 578,595,836 578,595,836
Holdings Co., Ltd person
Shenzhen State-owned Domestic non-
Equity Management state-owned legal 6.35% 64,288,426 64,288,426
Co., Ltd. person
Domestic natural
Yang Jianmin 0.84% 8,516,277 8,516,277
person
Domestic natural
Zhou Zhijian 0.57% 5,798,816 5,798,816
person
Domestic natural
Zhang Xiujuan 0.36% 3,597,300 3,597,300
person
Domestic natural
Wang Yulan 0.33% 3,378,691 3,378,691
person
Domestic natural
Pan Jun 0.23% 2,360,000 2,360,000
person
Domestic natural
Lin Hanteng 0.21% 2,100,400 2,100,400
person
Domestic natural
Liu Yuqing 0.21% 2,080,201 2,080,201
person
Domestic natural
He Qiao 0.20% 2,043,700 2,043,700
person
Strategic investor or None
34
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
general legal person
becoming a top-10
ordinary shareholder due
to rights issue (if any)
Among the top 10 shareholders of the Company, Shenzhen State-owned Equity Management Co.,
Related or acting-in- Ltd. is a wholly-owned subsidiary of Shenzhen Investment Holdings Co., Ltd. The Company does
concert parties among the not know whether there exists associated relationship among the other shareholders, or whether they
shareholders above are persons acting in concert as prescribed in the Administrative Measures for the Acquisition of
Listed Companies.
Explain if any of the
shareholders above was
involved in
None
entrusting/being entrusted
with voting rights or
waiving voting rights
Special account for share
repurchases (if any)
None
among the top 10
shareholders
Top 10 unrestricted shareholders
Unrestricted shares held at the Shares by type
Name of shareholder
period-end Type Shares
Shenzhen Investment Holdings Co., Ltd 578,595,836 RMB ordinary shares 578,595,836
Shenzhen State-owned Equity Management
64,288,426 RMB ordinary shares 64,288,426
Co., Ltd.
Yang Jianmin 8,516,277 RMB ordinary shares 8,516,277
Zhou Zhijian 5,798,816 RMB ordinary shares 5,798,816
Zhang Xiujuan 3,597,300 RMB ordinary shares 3,597,300
Wang Yulan 3,378,691 RMB ordinary shares 3,378,691
Pan Jun 2,360,000 RMB ordinary shares 2,360,000
Lin Hanteng 2,100,400 RMB ordinary shares 2,100,400
Liu Yuqing 2,080,201 RMB ordinary shares 2,080,201
He Qiao 2,043,700 RMB ordinary shares 2,043,700
Among the top 10 unrestricted public shareholders of the Company, Shenzhen State-
Related or acting-in-concert parties
owned Equity Management Co., Ltd. is a wholly-owned subsidiary of Shenzhen
among top 10 unrestricted public
Investment Holdings Co., Ltd. The Company does not know whether there exists
shareholders, as well as between top 10
associated relationship among the other shareholders, or whether they are persons
unrestricted public shareholders and
acting in concert as prescribed in the Administrative Measures for the Acquisition of
top 10 shareholders
Listed Companies.
Among the top 10 shareholders of the Company, the third, fifth, eighth, ninth and tenth
Top 10 ordinary shareholders involved
shareholders respectively held 5,368,800 shares, 3,597,300 shares, 860,000 shares,
in securities margin trading (if any)
2,010,201 shares, and 1,942,400 shares in their credit securities accounts.
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
Restricted Restricted Restricted
Beginnin Increase Decrease shares shares shares
Ending
g in the in the granted at granted in granted at
Office Incumben sharehold
Name sharehold Reporting Reporting the the the
title t/Former ing
ing Period Period period- Reporting period-
(share)
(share) (share) (share) beginning Period end
(share) (share) (share)
Deng Incumben
Director 10,000 0 2,500 7,500 0 0 0
Kangchen t
35
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
g
Total -- -- 10,000 0 2,500 7,500 0 0 0
V Change of the Controlling Shareholder or the De Facto Controller
Change of the controlling shareholder in the Reporting Period
□Applicable Not applicable
No such cases in the Reporting Period.
Change of the de facto controller in the Reporting Period
□Applicable Not applicable
No such cases in the Reporting Period.
36
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Part VIII Preference Shares
□Applicable Not applicable
No preference shares in the Reporting Period.
37
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Part IX Bonds
□Applicable Not applicable
38
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Part X. Financial Statements
I. Auditor’s Report
Whether the semi-annual report has been audited?
□ Yes √ No
The semi-annual report of the Company has not been audited.
II. Financial Statements
The financial statements of the company have been prepared in China Yuan.
1. Consolidated Statement of Financial Position
Prepared by Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd
As at 30 June 2022
Presented in RMB
Item 30 June 2022 1 January 2022
Current assets:
Cash at bank and on hand 326,915,586.65 564,358,824.63
Provision of Settlement fund
Funds lent
Financial assets held for trading 404,148,060.54 514,024,710.91
Derivative financial assets
Notes receivable 200,000.00 3,530,537.37
Accounts receivable 71,948,944.71 61,048,785.11
Accounts receivable financing
Prepayments 12,926,401.55 4,899,011.32
Insurance premiums receivables
Cession premiums receivables
Provision of cession premiums
Other receivables 49,014,731.62 30,614,008.08
Including: Interest receivable
Dividends receivable 1,052,192.76 1,052,192.76
Recoursable Financial assets
acquired
Inventories 4,070,379,390.87 4,034,933,562.62
Contractual assets
Assets held for sale 78,940,232.10
Non-current assets due within
one year
Other current assets 36,050,680.73 68,216,887.04
Total current assets 4,971,583,796.67 5,360,566,559.18
39
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Non-current assets:
Loans and payments
Debt investment
Investments in other debt
obligations
Long-term receivables
Long-term equity investments 272,168.28 272,168.28
Investments in other equity
19,777,460.65 36,322,704.33
instrument
Other non-current financial assets
Investment property 578,827,312.45 588,865,777.16
Fixed assets 22,677,228.99 23,920,424.55
Construction in progress
Productive living assets
Oil and gas assets
Right-of-use assets 298,924.34 365,351.97
Intangible assets
Development costs
Goodwill
Long-term deffered expense 2,047,111.97 2,164,963.18
Deferred tax assets 157,995,364.26 170,020,101.78
Other non-current assets
Total non-current assets 781,895,570.94 821,931,491.25
Total assets 5,753,479,367.61 6,182,498,050.43
Current liabilities:
Short-term loans 56,831,235.17 50,440,116.24
Borrowings from central bank
Deposit funds
Financial liabilities held for
trading
Derivative financial liabilities
Notes payable 235,818,710.20 247,376,403.56
Accounts payable 116,304,350.46 141,447,559.24
Advances from customers 6,478,938.55 6,411,427.04
Contractual liabilities 45,104,910.10 199,965,490.08
Funds from sale of financial
assets with repurchase
agreements
Deposits from customer and
interbank
Funds received as an agent of
stock exchange
Funds received as stock
underwrite
Payroll payable 47,074,012.25 43,926,711.78
Tax payable 306,596,230.20 600,540,872.48
Other payables 647,772,178.12 581,377,415.64
Including: Interest payable 16,535,277.94 16,535,277.94
Dividends payable 89,026,080.00
40
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Handling charges and
commissions payable
Cession premiums payables
Liabilities held for sale 65,752,452.06
Non-current liabilities due within
103,779.30 83,023.44
one year
Other current liabilities 2,352,351.37 8,196,849.13
Total current liabilities 1,464,436,695.72 1,945,518,320.69
Non-current liabilities:
Provision for insurance contracts
Long-term loans
Debentures payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 90,440.36 125,920.77
Long-term payables
Long-term employee benefits
payable
Provisions
Deferred income
Deferred tax liabilities 6,540,205.39 9,524,639.56
Other non-current liabilities
Total non-current liabilities 6,630,645.75 9,650,560.33
Total liabilities 1,471,067,341.47 1,955,168,881.02
Equity:
Share capital 1,011,660,000.00 1,011,660,000.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 978,244,910.11 978,244,910.11
Less: treasury shares
Other comprehensive income 26,995,808.40 36,088,963.95
Specific reserve
Surplus reserve 241,144,854.93 241,144,854.93
Generic Risk Reserve
Retained earnings 1,738,673,586.38 1,671,121,562.98
Total equity attributable to
3,996,719,159.82 3,938,260,291.97
shareholders of the company
Non-controlling interests 285,692,866.32 289,068,877.44
Total equity 4,282,412,026.14 4,227,329,169.41
Total liabilities and equity 5,753,479,367.61 6,182,498,050.43
Legal representative: Zhengyu Liu General Accountant：JianFei Wang The head of the accounting
department: Yanjun Qiao
2. Financial Position Statement of the Parent Entity
Presented in RMB
41
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Item 30 June 2022 1 January 2022
Current assets:
Cash at bank and on hand 208,547,834.21 304,130,181.74
Financial assets held for trading 404,148,060.54 514,024,710.91
Derivative financial assets
Notes receivable
Accounts receivable 78,189.53 9,708,285.93
Accounts receivable financing
Prepayments 200,000.00 200,000.00
Other receivables 1,606,595,768.89 1,587,300,891.76
Including: Interest receivable
Dividends receivable
Inventories 8,487,135.31 42,348,499.39
Contractual assets
Assets held for sale 12,821,791.52
Non-current assets due within
one year
Other current assets 1,767,077.36 7,144,189.24
Total current assets 2,229,824,065.84 2,477,678,550.49
Non-current assets:
Debt investment
Investments in other debt
obligations
Long-term receivables
Long-term equity investments 1,582,657,055.03 1,582,657,055.03
Investments in other equity
19,777,460.65 13,831,938.92
instruments
Other non-current financial assets
Investment property 467,185,993.27 476,622,089.39
Fixed assets 14,871,741.25 15,722,627.74
Construction in progress
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets
Development costs
Goodwill
Long-term deferred expense 1,068,887.61 1,167,500.83
Deferred tax assets 134,299,017.38 134,299,017.38
Other non-current assets
Total non-current assets 2,219,860,155.19 2,224,300,229.29
Total assets 4,449,684,221.03 4,701,978,779.78
Current liabilities:
Short-term loans
Financial liabilities held for
trading
Derivative financial liabilities
Notes payable
Accounts payable 18,580,208.85 29,750,790.44
42
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Advances from customers
Contractual liabilities 7,173,369.08 159,752,627.50
Payroll payable 35,540,386.85 33,496,830.45
Tax payable 286,660,372.57 588,031,923.05
Other payables 334,293,250.83 207,613,656.49
Including: Interest payable 16,535,277.94 16,535,277.94
Dividends payable 89,026,080.00
Liabilities held for sale
Non-current liabilities due within
one year
Other current liabilities 358,652.92 7,987,260.50
Total current liabilities 682,606,241.10 1,026,633,088.43
Non-current liabilities:
Long-term loans
Debentures payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee benefits
payable
Provisions
Deferred income
Deferred tax liabilities 5,027,520.65 5,027,520.65
Other non-current liabilities
Total non-current liabilities 5,027,520.65 5,027,520.65
Total liabilities 687,633,761.75 1,031,660,609.08
Equity:
Share capital 1,011,660,000.00 1,011,660,000.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 964,711,931.13 964,711,931.13
Less: treasury shares
Other comprehensive income 7,319,475.92 1,373,954.19
Specific reserve
Surplus reserve 218,015,241.52 218,015,241.52
Retained earnings 1,560,343,810.71 1,474,557,043.86
Total equity 3,762,050,459.28 3,670,318,170.70
Total liabilities and equity 4,449,684,221.03 4,701,978,779.78
3. Consolidated Statement of Profit or Loss and Other Comprehensive Income
Presented in RMB
Item 6 months ended 30 June 2022 6 months ended 30 June 2021
1. Revenue 366,184,498.90 694,598,218.47
Including: Operating revenue 366,184,498.90 694,598,218.47
Interest income
Insurance premium income
43
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Handling charge and
commission income
2. Expenses 337,004,632.25 520,035,493.63
Including: operating expenses 239,885,272.72 331,975,678.55
Interest expense
Handling charge and
commission expense
Refund of Insurance premium
Net payment for insurance
claims
Net provision for insurance
contracts
Commissions on insurance
polices
Cession charges
Taxes and surcharges 56,981,582.00 147,359,118.39
Selling and distribution expense 10,726,031.33 16,815,600.06
General and administrative
33,013,300.52 40,299,584.22
expenses
Research and development
expense
Financial expense -3,601,554.32 -16,414,487.59
Including: Interest expense
Interest income 2,903,815.84 16,398,025.57
Add: Other income 400,232.43 643,733.52
Investment income (“-” for
166,815,177.24
losses)
Including: Income from
investment in associates and joint
ventures (“-” for losses)
Income from derecognition of
financial assets at amortized cost
(“-” for loss)
Foreign exchange gain (“-” for
loss)
Net gain on exposure hedges (“-
” for loss)
Gains from changes in fair value
4,963,730.62 2,329,484.00
(“-” for losses)
Credit impairment loss (“-” for
131,316.20 1,142,580.28
loss)
Impairment losses (“-” for
losses)
Gains from assets disposal (“-”
for losses)
3. Operating profit (“-” for loss) 201,490,323.14 178,678,522.64
Add: Non-operating income 552,207.24 1,370,757.88
Less: Non-operating expense 45,299.06 25,246.47
4. Profit before income tax (“-” for 201,997,231.32 180,024,034.05
44
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
losses)
Less: Income tax expense 59,036,968.69 47,841,099.11
5. Net profit for the year (“-” for
142,960,262.63 132,182,934.94
net losses)
5.1 Classification according to
operation continuity
5.1.1 Net profit from
continuing operations (“-” for net 144,668,784.43 132,182,934.94
loss)
5.1.2Net profit from
discontinued operations (“-” for -1,708,521.80
net loss)
5.2 Classification according to
attribute
5.2.1 Members of the parent
145,128,330.14 132,447,122.14
entity ("-" for net loss)
5.2.2 Non-controlling
-2,168,067.51 -264,187.20
interests (“-” for net loss)
6. Other comprehensive income
1,148,674.10 459,551.69
(net of tax)
Other comprehensive income
(net of tax) attributable to 2,356,617.71 1,153,397.28
members of the parent entity
6.1 Other comprehensive
income
items that will not be 5,175,152.79 570,414.67
reclassified subsequently to
profit or loss
6.1.1 Remeasurement of
defined benefit plan liability or
asset
6.1.2 Other comprehensive
income that cannot be transferred
to profit or loss under the equity 5,175,152.79 570,414.67
method
6.1.3 Changes in the fair value
of investments in other equity
instruments
6.1.4 Changes in the fair
value of the company’s credit risks
6.1.5 Other
6.2 Other comprehensive
income items that may be
reclassified subsequently to profit -2,818,535.08 582,982.61
or loss
6.2.1 Other comprehensive
income that can be transferred to
profit or loss under equity method
45
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
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 Provision for credit
impairments in other debt
investment
6.2.5 Effective portion of
gains or losses arising from cash
flow hedging instruments
6.2.6 Translation differences
arising from translation of foreign -2,818,535.08 582,982.61
currency financial statements
6.2.7 Other
Other comprehensive
income (net of tax)
-1,207,943.61 -693,845.59
attributable to non-
controlling interests
7. Total comprehensive income for
144,108,936.73 132,642,486.63
the period
Attributable to members of
147,484,947.85 133,600,519.42
parent entity
Attributable to non-controlling
-3,376,011.12 -958,032.79
interests
8. Earnings per share
8.1 Basic earnings per share 0.1435 0.1309
8.2 Diluted earnings per share 0.1435 0.1309
In a business combination involving enterprises under common control, (net losses)/net profit of combined
parties before the combination date is RMB 0.00, and (net losses)/net profit of combined parties in prior
period is RMB 0.00.
Legal representative: Zhengyu Liu General Accountant：JianFei Wang The head of the accounting
department: Yanjun Qiao
4. Statement of Profit or Loss and Other Comprehensive Income For the Parent Entity
Presented in RMB
6 months ended 30 June 6 months ended 30 June
Item
2022 2021
1. Revenue 160,994,487.38 455,740,814.41
Less: Cost of sales 48,054,643.10 115,125,525.93
Taxes and surcharges 50,213,639.31 142,361,068.95
Selling and distribution expense 1,136,952.69 11,176,992.53
General and administrative
19,684,166.38 24,102,955.71
expenses
Research and development
46
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
expense
Financial expense -8,916,021.09 -25,571,620.46
Including: Interest expense
Interest income 2,004,015.51 27,256,987.84
Add: Other income 234,931.53 8,516.31
Investment income (“-” for
174,994,652.49
losses)
Including: Income from
investment in associates and joint
ventures (“-” for losses)
Income from the derecognition
of financial assets at amortized
cost (“-” for loss)
Net gain on exposure hedges (“-
” for loss)
Gains from changes in fair value
4,963,730.62 2,329,484.00
(“-” for losses)
Credit impairment loss (“-” for
78,105.19 586,866.00
loss)
Impairment losses (“-” for
losses)
Gains from assets disposal (“-”
for losses)
2. Operating profit (“-” for loss) 231,092,526.82 191,470,758.06
Add: Non-operating income 550,000.10 1,334,736.50
Less: Non-operating expense 1,550.00
3. Profit before income tax (“-” for
231,642,526.92 192,803,944.56
losses)
Less: Income tax expense 56,829,680.07 48,074,842.78
4. Net profit for the year (“-” for
174,812,846.85 144,729,101.78
net losses)
4.1 Net profit from continuing
174,812,846.85 144,729,101.78
operations (“-” for net loss)
4.2 Net profit from discontinued
operations (“-” for net losses)
5. Other comprehensive income,
5,945,521.73 568,376.57
net of tax
5.1 Other comprehensive
income
5,945,521.73 568,376.57
items that will not be reclassified
subsequently to profit or loss
5.1.1 Remeasurement of
defined benefit plan liability or
asset
5.1.2 Other comprehensive
income that cannot be transferred
to profit or loss under the equity
method
47
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
5.1.3 Changes in the fair
value of investments in other 5,945,521.73 568,376.57
equity instruments
5.1.4 Changes in the fair value
of the company’s credit risks
5.1.5 Other
5.2 Other comprehensive
income items that may be
reclassified subsequently to profit
or loss
5.2.1 Other comprehensive
income can be transferred to profit
or loss under 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 Provision for credit
impairments in other debt
investment
5.2.5 Effective portion of
gains or losses arising from cash
flow hedging instruments
5.2.6 Translation differences
arising from translation of foreign
currency financial statements
5.2.7 Other
6. Total comprehensive income for
180,758,368.58 145,297,478.35
the period
7. Earnings per share
7.1 Basic earnings per share 0.1787 0.1436
7.2 Diluted earnings per share 0.1787 0.1436
5. Consolidated Statement Of Cash Flows
Presented in RMB
Item 6 months ended 30 June 2022 6 months ended 30 June 2021
1. Cash flows from operating
activities:
Proceeds from sales of goods 229,484,917.15 958,228,940.19
Net increase deposits from
customers and placements from
corporations in the same industry
Net increase in loans from
central bank
Net increase in loans from other
financial institution
48
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Cash premiums received on
original insurance contracts
Net proceeds from reinsurance
Net increase in deposits and
investment from insures
Interest, handling charges and
commissions received
Net increase in fund deposits
Net increase in proceeds from
repurchase transactions
Net proceeds from acting
trading of securities
Refund of taxes 126,578,042.71
Proceeds from other operating
74,351,558.97 248,150,629.39
activities
Sub-total of cash inflows 430,414,518.83 1,206,379,569.58
Payment for goods and services 195,347,145.81 843,952,869.40
Net increase in loans and
payments on behalf
Net increase in deposits in
central bank and interbank
Payments of claims for original
insurance contracts
Net increase in fund paid
Interest, handling charges and
Interest
Commissions on issuance
policies paid
Payment to and for employees 51,050,768.33 76,069,285.98
Payments of various taxes 543,263,187.50 224,980,813.32
Payment for other operating
188,868,560.53 346,917,352.34
activities
Sub-total of cash outflows 978,529,662.17 1,491,920,321.04
Net cash flows from operating
-548,115,143.34 -285,540,751.46
activities
2. Cash flows from investing
activities:
Proceeds from disposal of
investments
Investment returns received 813,960.00
Net proceeds from disposal of
fixed assets, intangible assets and 2,907.50 1,700.00
other long-term assets
Net proceeds from disposal of
subsidiaries and other business 139,836,766.74
units
Proceeds from other investing
115,000,000.00
activities
Sub-total of cash inflows 255,653,634.24 1,700.00
Payment for acquisition of fixed
assets, intangible assets and other 126,730.24 636,636.13
long-term assets
Payment for acquisition of
investments
49
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Net increase in pledged loans
Net payment for acquisition of
subsidiaries and other business 449,881,758.15
units
Payment for other investing
1,300,000,000.00
activities
Sub-total of cash outflows 126,730.24 1,750,518,394.28
Net cash flows from investing
255,526,904.00 -1,750,516,694.28
activities
3. Cash flows from financing
activities:
Proceeds from investors
Including: Proceeds from non-
controlling shareholders of
subsidiaries
Proceeds from borrowings
Proceeds from other financing
331,178,702.21
activities
Sub-total of cash inflows 331,178,702.21
Repayments of borrowings
Payment for dividends, profit
88,014,419.99
distributions or interest
Including: Dividends and profits
paid to non-controlling profits paid
to non-controlling shareholders of
subsidiaries
Payment for other financing
activities
Sub-total of cash outflows 88,014,419.99
Net cash flows from financing
243,164,282.22
activities
4. Effect of foreign exchange rate
changes on cash and cash 250,898.91 -17,882.55
equivalents
5. Net increase in cash and cash
-292,337,340.43 -1,792,911,046.07
equivalents
Add: Cash and cash equivalents
612,293,635.15 2,669,103,926.82
as at the year beginning
6. Cash and cash equivalent as at
319,956,294.72 876,192,880.75
the year end
6. Cash Flow Statement of the Company as the Parent
Presented in RMB
Item 6 months ended 30 June 2022 6 months ended 30 June 2021
1. Cash flows from operating
activities:
Proceeds from sales of goods 29,085,968.85 646,885,255.16
Refund of taxes 76,602,710.88
Proceeds from other
187,691,251.29 332,351,724.25
operating activities
Sub-total of cash inflows 293,379,931.02 979,236,979.41
Payment for goods and services 11,570,231.88 43,601,422.20
50
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Payment to and for
25,700,808.60 20,102,672.44
employees
Payments of various taxes 490,780,774.26 184,272,398.39
Payment for other operating
32,392,663.29 222,180,710.27
activities
Sub-total of cash outflows 560,444,478.03 470,157,203.30
Net cash flows from operating
-267,064,547.01 509,079,776.11
activities
2. Cash flows from investing
activities:
Proceeds from disposal of
investments
Investment returns received 813,960.00
Net proceeds from disposal of
fixed assets, intangible assets and 2,907.50 1,000.00
other long-term assets
Net proceeds from disposal of
subsidiaries and other business 177,009,030.00
units
Proceeds from other investing
206,413,737.42
activities
Sub-total of cash inflows 384,239,634.92 1,000.00
Payment for acquisition of
fixed assets, intangible assets and 78,576.00 91,626.00
other long-term assets
Payment for acquisition of
investments
Net payment for acquisition
of subsidiaries and other business 450,000,000.00
units
Payment for other investing
207,513,737.42 1,644,696,200.26
activities
Sub-total of cash outflows 207,592,313.42 2,094,787,826.26
Net cash flows from investing
176,647,321.50 -2,094,786,826.26
activities
3. Cash flows from financing
activities:
Proceeds from investors
Proceeds from borrowings
Proceeds from other
financing activities
Sub-total of cash inflows
Repayments of borrowings
Payment for dividends, profit
88,014,419.99
distributions or interest
Payment for other financing
activities
Sub-total of cash outflows 88,014,419.99
Net cash flows from financing
-88,014,419.99
activities
4. Effect of foreign exchange rate
changes on cash and cash 102,684.42
equivalents
51
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
5. Net increase in cash and cash
-90,417,225.51 -1,673,618,785.72
equivalents
Add: Cash and cash
equivalents as at the year 297,680,168.50 2,311,776,619.47
beginning
6. Cash and cash equivalent as at
207,262,942.99 638,157,833.75
the year end
7. Consolidated Statement Of Changes in Equity
Presented in RMB
6 months ended 30 June 2022
Attributable to shareholders’ equity of the parent company
Other equity Oth No
instruments er Ge n-
Les Ret
co Sur neri con Tot
Sha Cap s: Spe ain
Item mp plu c Sub trol al
Pref Per ital trea cific
re reh s ed Oth ling equ
ere pet res sur res Risk tot
cap Oth ensi res ear er inte ity
nce ual erv y erv Res al
ital er ve erv nin
sha bon es sha e erv rest
inc e gs
res d res e s
om
e
1,0 1,6 3,9 4,2
978 36, 241 289
11, 71, 38, 27,
I. Balance ,24 088 ,14 ,06
660 121 260 329
at the end 4,9 ,96 4,8 8,8
,00 ,56 ,29 ,16
of last year 10. 3.9 54. 77.
0.0 2.9 1.9 9.4
11 5 93 44
0 8 7 1
Add:
Changes of
accounting
policies
Correction
of prior
period
errors
Business
combinatio
n involving
enterprises
under
common
control
Other
1,0 1,6 3,9 4,2
II. Balance 978 36, 241 289
11, 71, 38, 27,
,24 088 ,14 ,06
at the 660 121 260 329
4,9 ,96 4,8 8,8
Beginning ,00 ,56 ,29 ,16
10. 3.9 54. 77.
of the Year 0.0 2.9 1.9 9.4
11 5 93 44
0 8 7 1
III. Changes - 67, 58, - 55,
52
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
in equity 9,0 552 458 3,3 082
during the 93, ,02 ,86 76, ,85
year (“- 155 3.4 7.8 011 6.7
“for .55 0 5 .12 3
decrease)
(I) Total 145 147 - 144
2,3
,12 ,48 3,3 ,10
comprehen 56,
8,3 4,9 76, 8,9
sive 617
30. 47. 011 36.
income .71
14 85 .12 73
(II)
Shareholde
r’s
contributio
ns and
decrease
of capital
1.Contribut
ion by
ordinary
shareholde
rs
2. Holders
of other
equity
instrument
s invested
capital
3. Equity
settled
share-
based
payments
4．Other
- - -
(III) 89, 89, 89,
Appropriati 026 026 026
on of ,08 ,08 ,08
profits 0.0 0.0 0.0
0 0 0
1.Appropri
ation for
surplus
reserves
2.Appropri
ation for
general
reserves
- - -
3.Distributi 89, 89, 89,
on to 026 026 026
shareholde ,08 ,08 ,08
rs 0.0 0.0 0.0
0 0 0
4．Other
53
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
-
11,
(IV)Transfe 11,
449
449
r within ,77
,77
equity 3.2
3.2
6
6
1.Share
capital
increased
by capital
reserves
transfer
2.Share
capital
increased
by surplus
reserves
transfer
3.Transfer
of surplus
reserve to
offset
losses
4.
Remeasure
ment of
defined
benefit
plan
liability
orasset
transfer to
retained
earnings
5. Other
comprehen -
sive 11,
11,
449
income 449
,77
carried ,77
3.2
forward to 3.2
6
retained 6
earnings
6．Other
(V) Special
Reserve
1.Appropri
ation
during the
year
2.Utilizatio
n during
the year
(VI) Others
IV. Balance 1,0 978 26, 241 1,7 3,9 285 4,2
54
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
at the end 11, ,24 995 ,14 38, 96, ,69 82,
of the 660 4,9 ,80 4,8 673 719 2,8 412
period ,00 10. 8.4 54. ,58 ,15 66. ,02
0.0 11 0 93 6.3 9.8 32 6.1
0 8 2 4
Presented in RMB
6 months ended 30 June 2021
Attributable to shareholders’ equity of the parent company
Other equity Oth No
instruments er n-
Les Ge
co Sur Ret con Tot
Cap s: Spe neri
Item Sha mp plu ain trol al
Pref Per ital trea cific c Sub
re reh s ed Oth ling equ
ere pet res sur res Risk tot
cap Oth erv ensi res ear er inte ity
ital nce ual y erv Res al
er ve erv nin rest
sha bon es sha e erv
inc e gs s
res d res e
om
e
1,0 1,5 3,7 - 3,6
978 28, 218
I. Balance 11, 60, 97, 140 57,
,24 163 ,72
660 720 512 ,42 087
at the end 4,9 ,05 4,2
,00 ,25 ,48 5,2 ,25
of last year 10. 0.1 73.
0.0 4.3 8.2 33. 5.1
11 3 67
0 1 2 06 6
Add:
Changes of
accounting
policies
Correction
of prior
period
errors
Business
combinatio
n involving
enterprises
under
common
control
Other
1,0 1,5 3,7 - 3,6
II. Balance 978 28, 218
11, 60, 97, 140 57,
,24 163 ,72
at the 660 720 512 ,42 087
4,9 ,05 4,2
Beginning ,00 ,25 ,48 5,2 ,25
10. 0.1 73.
of the Year 0.0 4.3 8.2 33. 5.1
11 3 67
0 1 2 06 6
III. Changes 0.0 7,9 22, 110 140 429 570
in equity 0 25, 420 ,40 ,74 ,49 ,24
55
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
during the 913 ,58 1,3 7,8 4,1 1,9
year (“- .82 1.2 08. 03. 10. 14.
“for 6 67 75 50 25
decrease)
(I) Total 220 228 - 226
7,9
,83 ,76 2,3 ,43
comprehen 25,
6,3 2,2 25, 7,0
sive 913
09. 23. 204 18.
income .82
93 75 .97 78
(II)
Shareholde
r’s
contributio
ns and
decrease
of capital
1.Contribut
ion by
ordinary
shareholde
rs
2. Holders
of other
equity
instrument
s invested
capital
3. Equity
settled
share-
based
payments
4．Other
- - -
(III) 22,
110 88, 88,
420
Appropriati ,43 014 014
,58
on of 5,0 ,42 ,42
1.2
profits 01. 0.0 0.0
6
26 0 0
-
22,
1.Appropri 22,
420
420
ation for ,58
,58
surplus 1.2
1.2
6
6
1.Appropri
ation for
general
reserves
- - -
3.Distributi 88, 88, 88,
on to 014 014 014
shareholde ,42 ,42 ,42
rs 0.0 0.0 0.0
0 0 0
56
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
4．Other
(IV)Transfe
r within
equity
1.Share
capital
increased
by capital
reserves
transfer
2..Share
capital
increased
by surplus
reserves
transfer
3.Transfer
of surplus
reserve to
offset
losses
4.
Remeasure
ment of
defined
benefit
plan
liability
orasset
transfer to
retained
earnings
5. Other
comprehen
sive
income
carried
forward to
retained
earnings
6．Other
(V) Special
Reserve
1.
Appropriati
on during
the year
2.Utilizatio
n during
the year
431 431
,81 ,81
(VI) Others
9,3 9,3
15. 15.
57
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
47 47
1,0 1,6 3,9 4,2
IV. Balance 978 36, 241 289
11, 71, 38, 27,
,24 088 ,14 ,06
at the end 660 121 260 329
4,9 ,96 4,8 8,8
of the ,00 ,56 ,29 ,16
10. 3.9 54. 77.
period 0.0 2.9 1.9 9.4
11 5 93 44
0 8 7 1
8. Consolidated Statement Of Changes in Equity Of The Parent Entity
Presented in RMB
6 months ended 30 June 2022
Other equity Othe
instruments Less: r
Capit Speci Surpl Retai
Item Share treas comp Total
Prefe Perp al fic us ned Othe
capit ury rehe equit
rence etual Othe reser reser reser earni r
al share nsive y
share bond r ves ve ve ngs
s inco
s s me
I. Balance 1,011 1,474 3,670
964,7 1,373 218,0
,660, ,557, ,318,
at the end 11,93 ,954. 15,24
000.0 043.8 170.7
of last year 1.13 19 1.52
0 6 0
Add:
Changes of
accounting
policies
Correction
of prior
period
errors
Other
II. Balance 1,011 1,474 3,670
964,7 1,373 218,0
at the ,660, ,557, ,318,
11,93 ,954. 15,24
Beginning 000.0 043.8 170.7
1.13 19 1.52
of the Year 0 6 0
III. Changes
in equity
during the 5,945 85,78 91,73
,521. 6,766 2,288
year (“-
73 .85 .58
“for
decrease)
(I) Total
5,945 174,8 180,7
comprehen
,521. 12,84 58,36
sive
73 6.85 8.58
income
(II)
Shareholde
r’s
contributio
ns and
58
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
decrease
of capital
1.Contribut
ion by
ordinary
shareholde
rs
2. Holders
of other
equity
instrument
s invested
capital
3. Equity
settled
share-
based
payments
4．Other
(III) - -
Appropriati 89,02 89,02
on of 6,080 6,080
profits .00 .00
1.Appropri
ation for
surplus
2.Distributi - -
on to 89,02 89,02
shareholde 6,080 6,080
rs .00 .00
3．Other
(IV)Transfe
r within
equity
1.Share
capital
increased
by capital
reserves
transfer
2..Share
capital
increased
by surplus
reserves
transfer
3.Transfer
of surplus
reserve to
offset
losses
4.
Remeasure
ment of
59
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
defined
benefit
plan
liability
orasset
transfer to
retained
earnings
5. Other
comprehen
sive
income
carried
forward to
retained
earnings
6．Other
(V) Special
Reserve
1.
Appropriati
on during
the year
2.Utilizatio
n during
the year
(VI) Others
IV. Balance 1,011 1,560 3,762
964,7 7,319 218,0
at the end ,660, ,343, ,050,
11,93 ,475. 15,24
of the 000.0 810.7 459.2
1.13 92 1.52
period 0 1 8
Presented in RMB
6 months ended 30 June 2021
Other equity Othe
instruments Less: r
Capit treas comp Speci Surpl Retai
Total
Item Share
Prefe Perp al fic us ned Othe
capit ury rehe equit
rence etual Othe reser reser reser earni r
al share nsive y
share bond r ves ve ve ngs
s inco
s s me
I. Balance 1,011 1,360 3,533
964,7 1,131 195,5
,660, ,786, ,883,
at the end 11,93 ,151. 94,66
000.0 232.5 975.6
of last year 1.13 74 0.26
0 3 6
Add:
Changes of
accounting
policies
Correction
of prior
period
60
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
errors
Other
II. Balance 1,011 1,360 3,533
964,7 1,131 195,5
at the ,660, ,786, ,883,
11,93 ,151. 94,66
Beginning 000.0 232.5 975.6
1.13 74 0.26
of the Year 0 3 6
III. Changes
in equity
during the 56,71 57,28
568,3
4,681 3,058
year (“- 76.57
.78 .35
“for
decrease)
(I) Total
144,7 145,2
comprehen 568,3
29,10 97,47
sive 76.57
1.78 8.35
income
(II)
Shareholde
r’s
contributio
ns and
decrease
of capital
1.Contribut
ion by
ordinary
shareholde
rs
2. Holders
of other
equity
instrument
s invested
capital
3. Equity
settled
share-
based
payments
4．Other
(III) - -
Appropriati 88,01 88,01
on of 4,420 4,420
profits .00 .00
1.Appropri
ation for
surplus
2.Distributi - -
on to 88,01 88,01
shareholde 4,420 4,420
rs .00 .00
3．Other
61
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
(IV)Transfe
r within
equity
1.Share
capital
increased
by capital
reserves
transfer
2..Share
capital
increased
by surplus
reserves
transfer
3.Transfer
of surplus
reserve to
offset
losses
4.
Remeasure
ment of
defined
benefit
plan
liability
orasset
transfer to
retained
earnings
5. Other
comprehen
sive
income
carried
forward to
retained
earnings
6．Other
(V) Special
Reserve
1.
Appropriati
on during
the year
2.Utilizatio
n during
the year
(VI) Others
IV. Balance 1,011 1,417 3,591
964,7 1,699 195,5
at the end ,660, ,500, ,167,
11,93 ,528. 94,66
of the 000.0 914.3 034.0
1.13 31 0.26
period 0 1 1
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
III. Company informaition
Shenzhen Special Economic Zone Real Estate and Properties (Group) Co., Ltd. (the “Group” or “the Company”)
was established in July 1993, as approved by the Shenzhen Municipal Government with document SFBF (1993)
724. The Company issued A shares on 15 September 1993 and issued B shares on 10 January 1994. On 31 August
1994, the issued B shares were listed in the New York Exchange market as class A recommendation. The total
share capital is 1,011,660,000 shares, including 891,660,000 of A shares, and 120,000,000 of B shares. The
company business license registration number is 91440300192179585N, and the registered capital is CNY
1,011,660,000.00. The Company’s headquarter is located at Floor 45-48, Shen Fang Plaza, Ren Min South Road,
Luo Hu District, Shen Zhen, Guangdong province.
On 13 October 2004, according to the document No. (2004) 223 “Decision on establishing Shenzhen investment
Holding Co., Ltd.” issued by State-Owned Assets Supervision and Administration Commission of Shenzhen
Municipal Government, the former major shareholder – Shenzhen Construction Investment Holding Company
with two assets management companies merged, and the Shenzhen Investment Holding Co., Ltd formed, which
causes the Company's equity to change. By the State-owned Assets Supervision and Administration Commission
of the state council, and quasi-exempt obligations tender offer as approved by China Security Regulatory
Committee with document No. (2005)116, this issue of consolidated has been authorized and the change in
registration had been completed on 15 February 2006. At the end of the reporting period, Shenzhen Investment
Holding Limited holds 578,595.836 shares of the Company (57.19% of the total share capital). The shares are all
tradable unrestricted shares.
The Company has established the corporate governance structure of the general meeting of shareholders, the
board of directors and the board of supervisors. At present, it has human resources, financing plan department,
marketing department, engineering management department etc.
The Company and its subsidiaries (hereinafter referred to as "the Group") are principally engaged in real estate
development and sales, property leasing and management, retail merchandising and trade, hotel, equipment
installation and maintenance, construction, interior decoration, etc.
These financial statements and notes to the financial statements were approved by the Board of Directors of the
Group at the 74th Board meeting dated on 25 August 2022.
For details about the scope of consolidated statements, please refer to Note IX “interests in other entities”.
Refer to Note VIII and IX for changes in consolidation scope in current period.
IV. The Basis of Preparation of Financial Statements
1. Basis of preparation
The financial statements are prepared in accordance with the Accounting Standards for Business Enterprises and
corresponding application guidance, interpretations and other related provisions issued by the Ministry of
Finance (collectively, " Accounting Standards for Business Enterprises "). In addition, the Group also discloses
relevant financial information in accordance with the China Securities Regulatory Commission's "Information
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Disclosure and Reporting Rules for Companies that Public Issued Securities" No. 15 - General Provisions on
Financial Reporting (revised in 2014).
These financial statements are presented on going concern basis.
The Group adopts the accrual basis of accounting. Except for certain financial instruments, the financial
statements are prepared under the historical cost convention. In the event that impairment of assets occurs, a
provision for impairment is made accordingly in accordance with the relevant regulations.
2．Going concern
These financial statements are presented on going concern basis.
V. Significant accounting policies and accounting estimates
Reminders on specific accounting policies and accounting estimates:
The company take its own operation and production characteristics into consideration to determine the revenue
recognition policy. Please refer to Note V.39 “Revenue” for specific accounting policy.
1. Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements have been prepared in compliance with the Accounting Standards for Business
Enterprises to truly and completely present the Group’s and the Company’s financial position as at 30 June 2022
and the Group’s and the Company’s operating results and cash flows for the half-year ended 30 June 2022.
2. Accounting period
The accounting period of the Group is from 1 January to 31 December.
3. Operating cycle
The Group's operating cycle is 12 months.
4. Functional currency
The Group and domestic subsidiaries (including Hong Kong) use Chinese Yuan (“CNY”) as their functional
currency. Offshore subsidiaries, Great Wall Real Estate Co. LTD, determine American dollar as their functional
currency according to the primary economic environment where they operate. The financial statements of the
Group have been prepared in CNY.
5. Accounting treatments for business combinations involving enterprises under common control and
business combinations not involving enterprises under common control
（1）Business combinations involving enterprises under common control
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
For a business combination involving enterprises under common control, the assets acquired and liabilities
assumed are measured based on their carrying amounts in the consolidated financial statements of the
ultimate controlling party at the combination date, except for adjustments due to different accounting policies.
The difference between the carrying amount of the net assets acquired and the consideration paid for the
combination is adjusted against share premium in the capital reserve, with any excess adjusted against
retained earnings.
Business combination involving enterprises under common control through step by step multiple transactions.
In individual financial statements, the share of the net assets of the consolidated party in the book value of the
consolidated financial statements of the ultimate controlling party of the net assets of the consolidated party
on the consolidation date, calculated by the shareholding ratio on the consolidation date, shall be taken as the
initial investment cost of the investment; the difference between the initial investment cost and the sum of the
book value of the investment held before the merger plus the book value of the newly consideration paid shall
be adjusted for the capital reserve. If the capital reserve is insufficient to be written down, the retained
earnings shall be adjusted.
In the consolidated financial statement, the assets and liabilities of the consolidated party shall be measured
according to the book value of the consolidated financial statement of the ultimate controlling party on the
merger date, except for the adjustment due to different accounting policies; the balance between the book
value of the investment held before the merger and the book value of the newly consideration paid and the
book value of the net assets obtained during the merger shall be adjusted for capital reserves. If the capital
reserves are insufficient to be written down, the retained earnings shall be adjusted. For long-term equity
investment held by the merging party prior to acquiring control of the merged party, the relevant profit and
loss, other comprehensive income and other changes in owners' equity which have been recognized by the
merging party from later of the date on which the original equity was acquired and the date on which the
merging party and the merged party are ultimately under the control of the same party to the merging date,
shall offset the beginning retained earnings or profits and losses of the current period.
（2）Business combinations involving enterprises not under common control
For business combinations involving enterprises not under common control, the consideration costs include
acquisition-date fair value of assets transferred, liabilities incurred or assumed and equity securities issued by
the acquirer in exchange for control of the acquiree. At the acquisition date, the acquired assets, liabilities and
contingent liabilities of the acquiree are measured at their fair value. The acquiree’s identifiable asset,
liabilities and contingent liabilities, are recognised at their acquisition-date fair value.
Where the combination cost exceeds the acquirer’s interest in the fair value of the acquiree’s identifiable net
assets, the difference is recognised as goodwill, and subsequently measured on the basis of its cost less
accumulated impairment provisions. Where the combination cost is less than the acquirer’s interest in the fair
value of the acquiree’s identifiable net assets, the difference is recognised in profit or loss for the current
period after reassessment.
Business combination involving enterprises not under common control through step by step multiple
transactions.
In individual financial statements, the sum of the book value of the equity investment held by the purchaser
before the purchase date and the cost of the newly added investment on the purchase date is taken as the
initial investment cost of the investment. If other comprehensive income of equity investment held before the
purchase date is recognized by using the equity method, such other comprehensive income will not be treated
on the purchase date, and the investment will be treated on the same basis as the direct disposal of relevant
assets or liabilities by the invested entity. The owners' equity recognized as a result of changes in owners'
equity other than net profit and loss, other comprehensive income and profit distribution of the investee shall
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
be transferred to the current profit and loss during the disposal period at the time of disposal of the
investment. If the equity investment held before the purchase date is measured at fair value, the accumulated
change in fair value originally recorded in other comprehensive income is transferred to the profit and loss of
the current period when it is calculated by the cost method.
In the consolidated financial statement, the consolidated cost is the sum of the consideration paid on the
purchase date and the fair value on the purchase date of the equity held by the Purchaser prior to the
purchase date. For the equity held by the Purchaser before the purchase date, it shall be re-measured
according to the fair value of the equity on the purchase date, and the difference between the fair value and
the book value shall be recorded into the current income; The equity held by the Purchaser before the
purchase date involves other comprehensive income, and other changes in owners' equity turn into current
income on the purchase date, except for other comprehensive income generated by changes in net liabilities
or net assets of the remeasured income plan of the investee.
（3）Transaction costs for business combination
The overhead for the business combination, including the expenses for audit, legal services, valuation advisory,
and other administrative expenses, are recorded in profit or loss for the current period when incurred. The
transaction costs of equity or debt securities issued as the considerations of business combination are included
in the initial recognition amount of the equity or debt securities.
6. Consolidated financial statements
（1）Scope of consolidated financial statements
The scope of consolidated financial statements is based on control. Control exists when the Group has power
over the investee; exposure, or rights to variable returns from its involvement with the investee and has the
ability to affect its returns through its power over the investee. A subsidiary is an entity that is controlled by
the Group (including enterprise, a portion of an investee as a deemed separate component, and structured
entity controlled by the enterprise).
(2) Basis of preparation of consolidated financial statements
The consolidated financial statements are prepared by the Group based on the financial statements of the
Group and its subsidiaries and other relevant information. When preparing consolidated financial statements,
the accounting policies and accounting periods of the subsidiaries should be consistent with those established
by the Group, and all significant intra-group balances and transactions are eliminated.
Where a subsidiary or business was acquired during the reporting period, through a business combination
involving enterprises under common control, the financial statements of the subsidiary or business are
included in the consolidated financial statements as if the combination had occurred at the date that the
ultimate controlling party first obtained control.
Where a subsidiary or business was acquired during the reporting period, through a business combination
involving enterprises not under common control, the identifiable assets and liabilities of the acquired
subsidiaries or business are included in the scope of consolidation from the date that control commences.
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
The portion of a subsidiary’s equity that is not attributable to the parent is treated as non-controlling interests
and presented separately in the consolidated balance sheet within shareholders’ equity. The portion of net
profit or loss of subsidiaries for the period attributable to non-controlling interests is presented separately in
the consolidated income statement below the “net profit” line item. When the amount of loss for the current
period attributable to the non-controlling shareholders of a subsidiary exceeds the non-controlling
shareholders’ share of the opening owners’ equity of the subsidiary, the excess is still allocated against the
non-controlling interests.
（3）Changes in non-controlling interests
Where the Group acquires a non-controlling interest from a subsidiary’s non-controlling shareholders or
disposes of a portion of an interest in a subsidiary without a change in control, the transaction is treated as
equity transaction, and the book value of shareholder’s equity attributed to the Group and to the non-
controlling interest is adjusted to reflect the change in the Group’s interest in the subsidiaries. The difference
between the proportion interests of the subsidiary’s net assets being acquired or disposed and the amount of
the consideration paid or received is adjusted to the capital reserve in the consolidated balance sheet, with
any excess adjusted to retained earnings.
（4）Disposal of subsidiaries
When the Group loses control over a subsidiary because of disposing part of equity investment or other
reasons, the remaining part of the equity investment is re-measured at fair value at the date when the control
is lost. A gain or loss is recognised in the current period and is calculated by the aggregate of consideration
received in disposal and the fair value of remaining part of the equity investment deducting the share of net
assets in proportion to previous shareholding percentage in the former subsidiary since acquisition date and
the goodwill.
Other comprehensive income related to the former subsidiary is transferred to profit or loss when the control
is lost, except for the comprehensive income arising from the movement of net liabilities or assets in the
former subsidiary’s re-measurement of defined benefit plan.
7. Joint arrangement classification and accounting treatment for joint operation
A joint arrangement is an arrangement of which two or more parties have joint control. The Group classifies
joint arrangements into joint operations and joint ventures.
（1）Joint operations
A joint operation is a joint arrangement whereby the joint operators have rights to the assets, and obligations
for the liabilities, relating to the arrangement.
The Group recognizes the following items relating to its interest in a joint operation, and account for them in
accordance with relevant accounting standards:
A. its solely-held assets, and its share of any assets held jointly;
B. its solely-assumed liabilities, and its share of any liabilities assumed jointly;
C. its revenue from the sale of its share of the output arising from the joint operation;
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
D. its share of the revenue from the sale of the output by the joint operation; and
E. its solely-incurred expenses, and its share of any expenses incurred jointly.
（2）Joint ventures
A joint venture is a joint arrangement whereby the joint venturers have rights to the net assets of the
arrangement.
The Group adopts equity method under long-term equity investment in accounting for its investment in joint
venture.
8. Cash and cash equivalents
Cash comprises cash in hand and deposits that can be readily withdrawn on demand. Cash equivalents include
short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to
an insignificant risk of change in value.
9. Foreign currency transactions and translation of foreign currency financial statements
（1）Foreign currency transactions
Foreign currency transactions are translated to the functional currency of the Group at the spot exchange rates
on the dates of the transactions.
Monetary items denominated in foreign currencies are translated to Renminbi at the spot exchange rate at the
balance sheet date. The resulting exchange differences between the spot exchange rate on balance sheet date
and the spot exchange rate on initial recognition or on the previous balance sheet date are recognised in profit
or loss. Non-monetary items that are measured at historical cost in foreign currencies are translated to Renminbi
using the exchange rate at the transaction date. Non-monetary items that are measured at fair value in foreign
currencies are translated using the exchange rate at the date the fair value is determined. The resulting exchange
differences are recognised in profit or loss.
（2）Translation of foreign currency financial statements
When translating the foreign currency financial statements of overseas subsidiaries, assets and liabilities of
foreign operation are translated to Renminbi at the spot exchange rate at the balance sheet date. Equity items,
excluding “retained earnings”, are translated to Renminbi at the spot exchange rates at the transaction dates.
Income and expenses of foreign operation are translated to Renminbi at the spot exchange rates at the
transaction dates.
Cash flow statement of foreign operation is translated to Renminbi at the spot exchange rates at the cash flow
occurence dates. Effect of foreign exchange rate changes on cash and cash equivalents is presented separately
as “Effect of foreign exchange rate changes on cash and cash equivalents” in the cash flow statement.
The resulting translation differences are recognised in other comprehensive income in shareholders’ equity of
balance sheet.
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
The translation differences accumulated in shareholders’ equity with respect to a foreign operation are
transferred to profit or loss in the period when the foreign operation is disposed.
10. Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one enterprise and a financial
liability or an equity instrument of another enterprise.
（1）Recognition and derecognition of financial instruments
A financial asset or a financial liability is recognized when the Group becomes a party to the contractual
provisions of a financial instrument.
If one of the following criteria is met, a financial asset is derecognised:
① the contractual rights to the cash flows from the financial asset expire; or
② The financial asset was transferred, and the transfer qualifies for derecognition in accordance with
criteria set out below in “Transfer of Financial Assets”.
A financial liability (or part of it) is derecognized when its contractual obligation (or part of it) is discharged or
cancelled or expires. If the Group (as a debtor) makes an agreement with the creditor to replace the current
financial liability with assuming a new financial liability, and contractual provisions are different in substance,
the current financial liability is derecognized and a new financial liability is recognized.
If the financial assets are traded regularly, the financial assets are recognized and derecognized at the
transaction date.
（2）Classification and measurement of financial assets
The Group classifies financial assets as subsequently measured at amortized cost, fair value through other
comprehensive income or fair value through profit or loss at initial recognition on the basis of both the entity’s
business model for managing the financial assets and the contractual cash flow characteristics of the financial
asset.
Financial assets measured at amortized cost
The Group classifies the financial assets that meet the following conditions and are not designated as
measured at fair value through profit or loss as financial assets measured at amortized cost:
The Group's business model of managing the financial assets is to collect contractual cash flows as
the target;
The contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.
After the initial recognition, the effective interest rate method is adopted to measure the amortized cost of
such financial assets. Gains or losses arising from financial assets that are measured at amortized cost and are
not part of any hedging relationship shall be recorded in the current profit or loss when the recognition is
terminated, amortized according to the effective interest method or the impairment is recognized.
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Financial assets measured at fair value through other comprehensive income
The Group classifies the financial assets that simultaneously meet the following conditions and are not
specified as measured at fair value through profit or loss as financial assets measured at fair value through
other comprehensive income:
The Group's business model of managing the financial asset aims at both collecting the contract cash
flow and selling the financial asset.
The contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.
After the initial recognition, this type of financial assets are subsequently measured at fair value. The interest,
impairment loss or gain and exchange loss or gain calculated using the effective interest rate method are
included in the current profit or loss, while other gains or losses are included in other comprehensive income.
When derecognized, the accumulated gains or losses previously recorded in other comprehensive income shall
be transferred out from other comprehensive income and recorded in the current profit or loss.
Financial assets measured at fair value through profit or loss
In addition to the above financial assets measured at amortized cost and measured at fair value through other
comprehensive income, the Group classifies all other financial assets as financial assets measured at fair value
through profit or loss. At the time of initial recognition, in order to eliminate or significantly reduce accounting
mismatches, the Group irrevocably designates some financial assets that should have been measured at
amortized cost or measured at fair value through other comprehensive income as financial assets measured at
fair value through profit or loss.
After the initial recognition, this kind of financial asset is subsequently measured at its fair value, and the gains
or losses (including interest and dividend income) generated are recorded into the current profit or loss, unless
the financial asset is part of the hedging relationship.
However, for non-trading equity instrument investment, the Group irrevocably designates it as a financial asset
measured at fair value through other comprehensive income at the time of initial recognition. The designation
is made on a single investment basis and the relevant investments meet the definition of an equity instrument
from issuer's perspective.
After the initial recognition, this kind of financial assets are subsequently measured at fair value. Satisfied
dividend income is included in the profit or loss, other gains or losses and changes in fair value are included in
other comprehensive income. When derecognized, the accumulated gains or losses previously recorded in
other comprehensive income are transferred out and recorded in retained earnings.
The business model of managing financial assets refers to how the group manages financial assets to generate
cash flows. The business model determines whether the cash flow from the financial assets under
management of the Group is derived from the receipt of contractual cash flows, the sale of financial assets or a
combination of both. The Group determines its business model for managing financial assets on the basis of
objective facts and the specific business objectives for the management of financial assets determined by key
management personnel.
The Group assesses the contractual cash flow characteristics of financial assets to determine whether the
contractual cash flows generated by the relevant financial assets on specified dates are solely payments of
principal and interest on the principal amount outstanding. Principal refers to the fair value of financial assets
at initial recognition. Interest includes consideration for the time value of money, the credit risk associated
with the amount of principal outstanding over a given period, and other basic lending risks and costs, as well
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
as a profit margin. In addition, the Group assesses contractual terms that may cause a change in the time
distribution or amount of the contractual cash flows of financial assets to determine whether they meet the
requirements of the above contractual cash flow characteristics.
Only when the Group changes the business model of managing financial assets, all affected related financial
assets shall be reclassified on the first day of the first reporting period after the change of the business model,
otherwise the financial assets shall not be reclassified after the initial recognition.
Financial assets are measured at fair value at the time of initial recognition. For financial assets measured at
fair value through profit or loss, relevant transaction costs are directly recorded into current profit or loss; for
other classes of financial assets, the relevant transaction costs are included in the initial recognition amount.
For accounts receivable arising from the sale of products or provision of services, which do not contain or do
not take into account the material financing component, the Group is entitled to collect the consideration
amount as expected as the initial recognition amount.
（3）Classification and measurement of financial liabilities
At the time of initial recognition, the financial liabilities of the Group are classified as: financial liabilities
measured at fair value through current profit or loss, and financial liabilities measured at amortized cost. For
financial liabilities that are not classified as measured at fair value through profit or loss, relevant transaction
costs are included in their initial recognized amounts.
Financial liabilities measured at fair value through profit or loss
Financial liabilities measured at fair value through profit or loss include trading financial liabilities and financial
liabilities designated at the time of initial recognition as measured at fair value through profit or loss. For such
financial liabilities, the subsequent measurement shall be made according to the fair value, and the gains or
losses caused by changes in the fair value as well as the dividends and interest expenses related to such
financial liabilities shall be recorded into current profit or loss.
Financial liabilities measured at amortized cost
For other financial liabilities, the effective interest rate method shall be adopted, and the subsequent
measurement shall be made at the amortized cost, and the gains or losses arising from derecognition or
amortization shall be recorded into current profit or loss.
The distinction between financial liabilities and equity instruments
Financial liabilities refer to liabilities that meet one of the following conditions:
① A contractual obligation to deliver cash or other financial assets to other parties.
② a contractual obligation to exchange financial assets or financial liabilities with another party under
potentially adverse conditions.
③ Non-derivative instrument contracts that will be settled with or available to the firm's own equity
instruments in the future, under which the firm will deliver a variable number of its own equity instruments.
④ a derivative contract in which the firm's own equity instruments are to be settled or used in the future,
except for a derivative contract in which a fixed number of its own equity instruments are to be exchanged for
a fixed amount of cash or other financial assets.
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
An equity instrument is a contract that certifies ownership of the remaining interest in an enterprise's assets
after all liabilities have been deducted.
If the Group cannot unconditionally avoid fulfilling a contractual obligation by delivering cash or other financial
assets, such contractual obligation meets the definition of a financial liability.
If a financial instrument is to be settled with or available to the Group's own equity instrument, consideration
needs to be given to whether the Group's own equity instrument used to settle the instrument is to be used as
a substitute for cash or other financial assets or to give the holder of the instrument the remaining interest in
the Issuer's assets after deduction of all liabilities. If the former, the instrument is a financial liability of the
group; If it is the latter, the instrument is an equity instrument of the Group.
（4）Fair value of financial instruments
For the determination of fair value of financial assets and financial liabilities, see Note V. 43.
（5）Impairment of financial assets
On the basis of expected credit losses, the Group conducts impairment accounting treatment for the following
items and confirms the loss provision:
Financial assets measured at amortized cost;
Receivables and creditor's rights investments measured at fair value and accounted for in other
comprehensive income;
Contract assets as defined in the Accounting Standards for Business Enterprises No. 14 - Revenue;
Lease receivables;
Financial guarantee contract (measured at fair value and its changes included in the current profit and loss,
except the financial asset transfer does not meet the conditions for termination of recognition or continues to
involve the transferred financial asset).
Measurement of expected credit losses
The term "expected credit loss" refers to the weighted average of the credit loss of a financial instrument
weighted by the risk of default. Credit loss refers to the difference between all contractual cash flows
receivable under the contract and all cash flows expected to be collected by the Group discounted at the
original effective interest rate, that is, the present value of all cash shortages.
The Group calculates the probabilistic weighted amount of the present value of the difference between the
cash flows receivable under the Contract and the cash flows expected to be received and recognizes the
expected credit loss, taking into account reasonable and evidential information concerning past events, current
conditions and Itemions of future economic conditions, and weighting the risk of default.
he Group measures the expected credit losses of financial instruments at different stages. If the credit risk of
the financial instrument has not increased significantly since the initial recognition, the Group shall measure
the loss provision in accordance with the expected credit loss in the next 12 months in the first stage;If the
credit risk of a financial instrument has increased significantly since the initial recognition but no credit
impairment has occurred, it is in the second stage, and the Group measures the loss provision according to the
expected credit loss of the entire life period of the instrument; If credit impairment has occurred to a financial
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
instrument since its initial recognition, it is in the third stage, and the Group shall measure the loss provision
according to the expected credit loss of the entire life period of the instrument.
For financial instruments with low credit risk at the balance sheet date, the Group assumes that the credit risk
has not increased significantly since the initial recognition, and measures the loss provision in accordance with
the expected credit loss for the next 12 months.
The term "expected credit loss over the entire expected life of a financial instrument" refers to the expected
credit loss resulting from all possible events of default during the entire expected life of a financial instrument.
The expected credit loss within the next 12 months refers to the expected credit loss caused by the default
event of the financial instrument that may occur within 12 months after the date of the balance sheet (or the
expected duration of the financial instrument if the expected duration of the financial instrument is less than
12 months) and is part of the expected credit loss over the entire maturity period.
When measuring expected credit losses, the Group shall take into account the longest contract period
(including the option to renew the contract) for which the enterprise is exposed to credit risk.
The Group calculates interest income on the basis of the book balance before impairment provisions and the
effective interest rate for financial instruments in stage I and stage II and with lower credit risk. For financial
instruments in the third stage, the interest income is calculated on the basis of the amortized cost of the book
balance less the impairment provision and the effective interest rate.
For notes receivable, accounts receivable and contract assets, regardless of whether there is a material
financing component, the Group always measures its loss provision in accordance with the amount equivalent
to the expected credit loss within the whole duration period.
When a single financial asset cannot assess the information of expected credit loss at a reasonable cost, the
Group divides the notes receivable and accounts receivable into portfolios according to the credit risk
characteristics, calculates the expected credit loss on the basis of the portfolios, and determines the portfolios
based on the following:
A. Notes receivable
Notes receivable portfolio 1: banker acceptance notes
Notes receivable portfolio 2: commercial acceptance notes
B. Receivables
Accounts receivable portfolio 1: related parties receivable
Accounts Receivable Portfolio 2: Receivable from property sales
Accounts receivable portfolio 3: receivable from other customers
C. Contract assets
Contract Portfolio 1: Product Sales
Contract Portfolio 2: Works Construction
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
For the notes receivable and contract assets divided into portfolios, the Group calculates the expected credit
loss through default risk exposure and the expected credit loss rate over the entire duration by referring to the
historical credit loss experience, combining the current situation and the forecast of the future economic
situation.
For the receivables divided into portfolios, the Group refers to the historical credit loss experience and
combines the current situation with the forecast of the future economic situation to compile a comparison
table between the age of receivables/overdue days and the expected credit loss rate of the entire duration
period to calculate the expected credit loss.
Other receivables
The Group divides other receivables into several portfolios according to the credit risk characteristics, and
calculates the expected credit loss on the basis of the portfolio. The basis for determining the portfolio is as
follows:
Other Receivables Portfolio 1: Receivables from government agencies
Other Receivables Portfolio 2: Other receivables from employee’s petty cash
Other receivables portfolio 3: Other receivables from the collecting and paying on behalf
Other receivables portfolio 4: Other receivables from other customers
Other receivables portfolio 5: Receivables from related parties
For other receivables divided into portfolios, the Group calculates the expected credit loss by default risk
exposure and the expected credit loss rate over the next 12 months or the entire duration.
Debt investment and Other debt investment
For debt investment and other debt investment, the Group calculates the expected credit loss based on the
default risk exposure and the expected credit loss rate within the next 12 months or the entire duration
according to the nature of the investment and the various types of counterparties and risk exposures.
An assessment of a significant increase in credit risk
By comparing the risk of default of financial instruments on the balance sheet date with the risk of default on
the initial recognition date, the Group determines the relative change of default risk within the expected
duration of financial instruments, so as to evaluate whether the credit risk of financial instruments has
significantly increased since the initial recognition.
In determining whether credit risk has increased significantly since the initial recognition, the Group considers
reasonable and informed information, including forward-looking information that can be obtained without
unnecessary additional cost or effort. Information considered by the Group includes:
The debtor fails to pay the principal and interest as due under the contract;
A material deterioration, if any, of the external or internal credit rating of the financial instrument
that has occurred or is expected;
A serious deterioration of the debtor's business results occurred or is expected;
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A change in the existing or anticipated technological, market, economic or legal environment which
will have a material adverse effect on the debtor's ability to repay the Group.
According to the nature of financial instruments, the Group evaluates whether credit risk increases
significantly on the basis of individual financial instruments or a combination of financial instruments. When
assessing on the basis of a portfolio of financial instruments, the Group may classify financial instruments
based on common credit risk characteristics, such as overdue information and credit risk rating.
If overdue for more than 30 days, the Group determines that the credit risk of the financial instrument has
increased significantly.
The Group believes that the financial assets are in default under the following circumstances:
The Borrower is unlikely to pay its arrears to the Group in full and this assessment does not take into
account any recourse actions taken by the Group, such as liquidating the collateral (if held); or
Financial assets are more than 90 days overdue.
A financial asset whose credit has been impaired
On the balance sheet date, the Group evaluates whether credit impairment has occurred in financial assets
measured at amortized cost and debt investments measured at fair value and whose changes are included in
other comprehensive income. When one or more events which have an adverse effect on the expected future
cash flow of a financial asset occur, the financial asset becomes a financial asset with credit impairment.
Evidence of credit impairment of financial assets includes the following observable information:
Major financial difficulties occur to the issuer or the debtor;
A breach of contract by the debtor, such as a default or late payment of interest or principal;
The Group, for economic or contractual considerations relating to the debtor's financial difficulties,
gives concessions that the debtor would not have made under any other circumstances;
The debtor is likely to go bankrupt or undergo other financial restructuring;
The financial difficulties of the issuer or debtor result in the disappearance of an active market for
the financial asset.
Presentation of expected credit loss provisions
In order to reflect the change of the credit risk of financial instruments since the initial recognition, the Group
re-measures the expected credit loss on each balance sheet date, and the increase or rolleback amount of the
loss provision thus formed shall be recorded into the current profit and loss as an impairment loss or profit. For
a financial asset measured at amortized cost, the loss provision shall offset the carrying value of the financial
asset as stated in the balance sheet; For the debt investment measured at fair value and its changes included
in other comprehensive income, the Group recognizes its loss provision in other comprehensive income and
does not deduct the book value of the financial asset.
Written-off
If the Group no longer reasonably expects that the contractual cash flow of a financial asset can be recovered
in whole or in part, the carrying balance of the financial asset shall be directly written down. Such writedowns
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constitute termination recognition of the relevant financial assets. This usually occurs when the Group
determines that the debtor does not have assets or sources of income that generate sufficient cash flow to
repay the amount to be written down. However, in accordance with the Group's procedures for recovering
amounts due, the financial assets that have been written down may still be affected by the execution activities.
If a financial asset that has been written down is recovered later, it shall be carried back as an impairment loss
and recorded in the profit and loss of the current period.
（6）Transfer of financial assets
Transfer of financial assets is the transfer or delivery of financial assets to another party (the transferee) other
than the issuer of financial assets.
A financial asset is derecognised if the Group transfers substantially all the risks and rewards of ownership of
the financial asset to the transferee. A financial asset is not derecognised if the Group retains substantially all
the risks and rewards of ownership of the financial asset to the transferee.
The Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial
asset, and the accounting treatment is shown as following: if the Group has forgone control over the financial
asset, the financial assets is derecognized, and new assets and liabilities are recognized. If the Group retains
control over the financial asset, the financial asset is recognised to the extent of its continuing involvement in
the transferred financial asset, and an associated liability is recognised.
（7）Offset of financial assets and financial liabilities
Where the Group has the legal right to set off the recognized financial asset and financial liability, and is
currently able to enforce such legal right, and the Group plans to settle the financial asset on a net basis or
simultaneously realize the financial asset and pay off the financial liability, the financial asset and financial
liability shall be shown in the balance sheet with the offset amount. In addition, financial assets and financial
liabilities shall be separately presented in the balance sheet and shall not be set off against each other.
11. Notes Receivable
Please refer to Notes V.10 Financial Instrument (5) Impairment of Financial Asset.
12. Accounts Receivable
Please refer to Notes V.10 Financial Instrument (5) Impairment of Financial Asset.
13. Accounts receivable financing
14. Other receivables
Determination method and accounting treatment method of expected credit loss of other receivables
Please refer to Note V 10. financial instruments (5) Impairment of financial assets.
15. Inventories
（1）Classification
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The Group's inventory is classified by real estate development and non-real estate development. Inventory is
mainly real estate development projects, including development costs and development products. Development
cost include the development costs of development products to be developed and development products under
construction. Development products include completed development products and development products
intended for sell but temporarily leased. Non-real estate development projects include raw materials, finished
goods and engineering construction.
（2）Mesurement method of cost of inventories
The group’s inventories are measured at actual cost when acquired. The actual cost of developing a product
includes land transfer fee, infrastructure expenditure, construction and installation project expenditure,
borrowing expenses incurred before the completion of the development project and other related expenses in
the development process.。When a product is developed and shipped, the actual cost is determined by specific
identification method.
Raw materials and finished goods are calculated using weighted average method.
（3）Basis for determining the net realisable value and method for provision for obsolete inventories
Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of
completion and the estimated costs necessary to make the sale and relevant taxes. The net realisable value is
measured based on the verified evidences and considerations for the purpose of holding inventories and the
effect of post balance sheet events.
Any excess of the cost over the net realisable value of of inventories is recognised as a provision for obsolete
inventories, and is recognised in profit or loss. The Group usually recognises provision for decline in value of
inventories by a single inventory item. If the factors caused the value of inventory previously written-down
have disappeared, the provision for decline in value of inventories previously made is reversed.
（4）Inventory count system
The Group maintains a perpetual inventory system
（5）Amortization methods of low-value consumables and packaging materials
Low-value consumables are charged to profit or loss when they are used.
16. Contract assets
17. Contract costs
Contract costs include incremental costs incurred to obtain the contract and contract performance costs.
Incremental costs incurred to obtain a contract are costs (such as sales commissions, etc.) that the Group
would not have incurred without the contract. If the cost is expected to be recovered, the Group will recognize
it as an asset as the contract acquisition cost. Other expenses incurred by the Group for the acquisition of
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contracts, other than the incremental costs expected to be recovered, are recorded into the profit and loss of
the current period when incurred.
If the cost incurred for the performance of the contract does not fall within the scope of accounting standards
for inventories and other enterprises and meets the following conditions at the same time, the Group will
recognize it as an asset as the contract performance cost:
① The costs are directly related to a current or prospective contract and include direct labor, direct materials,
overhead (or similar), costs that are expressly borne by the customer and other costs incurred solely in
connection with the contract;
② This cost increases the Group's future resources for fulfilling its performance obligations;
③ The cost is expected to be recovered.
Assets with contract acquisition cost recognition and assets with contract performance cost recognition
(hereinafter referred to as "assets related to contract cost") shall be amortized on the same basis as income
recognition of goods or services related to such assets and shall be recorded into current profit and loss. If the
amortization period does not exceed one year, it will be recorded in the current profit and loss at the time of
occurrence.
When the book value of the assets related to the contract cost is higher than the difference between the
following two items, the Group shall make provision for impairment of the excess part and recognize it as
impairment loss of the assets:
① the remaining consideration that the Group is expected to obtain as a result of the transfer of the goods or
services related to the asset;
② Estimate the costs to be incurred for the transfer of the relevant goods or services.
The contract performance cost recognized as an asset shall be shown in the "Inventory" item with an
amortization period of no more than one year or one normal operating cycle at the time of initial recognition,
while the amortization period exceeding one year or one normal operating cycle at the time of initial
recognition shall be shown in the item of "Other Non-current Assets".
The contract acquisition cost recognized as an asset shall be shown in the item of "Other Current Assets" with
an amortization period of less than one year or one normal operating cycle at the time of initial recognition,
and shall be shown in the item of "Other Non-current Assets" with an amortization period of more than one
year or one normal operating cycle at the time of initial recognition.
18. Assets held for sale
The Group classifies a non-current asset or disposal group as held for sale when the carrying amount of the
non-current asset or disposal group will be recovered through a sale transaction (including an exchange
transaction of non-monetary assets with commercial substance) rather than through continuing use.
A non-current asset or disposal group is classified as held for sale when all the following criteria are met:
According to the customary practices of selling such asset or disposal group in similar transactions, the non-
current asset or disposal group is available for immediate sale in its present condition; The sale is highly
probable to occur, that is, the Group has made a resolution on a sale plan and entered into a legally binding
purchase agreement with other parties. The sale is expected to be completed within one year.
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The Group that is committed to a sale plan involving loss of control of a subsidiary classifies all the investment
in that subsidiary as held for sale in its separate financial statements, and classifies all the assets and liabilities
of that subsidiary as held for sale in its consolidated financial statements, when the classification criteria for
held for sale are met, regardless of whether the Group retains a non-controlling interest in its former
subsidiary after the sale.
Non-current assets or disposal groups held for sale are initially and subsequently measured at the lower of
carrying amount and fair value less costs to sell. Any excess of the carrying amount over the fair value less
costs to sell is recognised as an impairment loss in profit or loss. The impairment loss recognised for a disposal
group firstly reduces the carrying amount of goodwill allocated to the disposal group, and then reduces the
carrying amount of other non-current assets pro rata on the basis of the carrying amount of each non-current
asset in the disposal group.
The Group recognises a gain for any subsequent increase in fair value less costs to sell of an asset, but not in
excess of the cumulative impairment loss that has been recognised after classified as held for sale. The
reduced carrying amount of goodwill is not recovered.
The Group does not depreciate (or amortise) a non-current asset while it is classified as held for sale or while it
is part of a disposal group classified as held for sale. Interest and other expenses attributable to the liabilities
of a disposal group classified as held for sale continue to be recognised.
If an investment or a part of investment in an associate or a joint venture is classified as held for sale, equity
method is not used for the part classified as held for sale, while equity method is used for the rest part (the
part not classified as held for sale) continuely. When the Group does not have material impact on an associate
or a joint venture due to the sale transaction, it stops using equity method.
19. Debt investment
20. Other debt investments
21. Long-term receivables
22. Long-term equity investments
Long-term equity investments include equity investments in subsidiaries and equity investments in joint
ventures and associates. An associate is an enterprise over which the Group has significant influence.
（1）Determination of initial investment cost
The initial cost of a long-term equity investment acquired through a business combination involving
enterprises under common control is the Group’s share of the carrying amount of the subsidiary’s equity in the
consolidated financial statements of the ultimate controlling party at the combination date. For a long-term
equity investment obtained through a business combination not involving enterprises under common control,
the initial cost is the combination cost.
A long-term equity investment acquired other than through a business combination: A long-term equity
investment acquired other than through a business combination is initially recognised at the amount of cash
paid if the Group acquires the investment by cash, or at the fair value of the equity securities issued if an
investment is acquired by issuing equity securities.
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（2）Subsequent measurement and recognition of profit or loss
Long-term equity investments in subsidiaries are accounted for using the cost method. An investment in a joint
venture or an associate is accounted for using the equity method for subsequent measurement.
For a long-term equity investment which is accounted for using the cost method, Except for cash dividends or
profit distributions declared but not yet distributed that have been included in the price or consideration paid
in obtaining the investments, the Group recognises its share of the cash dividends or profit distributions
declared by the investee as investment income for the current period.
For a long-term equity investment which is accounted for using the equity method, where the initial cost of a
long-term equity investment exceeds the Group’s interest in the fair value of the investee’s identifiable net
assets at the date of acquisition, the investment is initially recognised at cost. Where the initial investment cost
is less than the Group’s interest in the fair value of the investee’s identifiable net assets at the date of
acquisition, the investment is initially recognised at the investor’s share of the fair value of the investee’s
identifiable net assets, and the difference is recognised in profit or loss.
Under the equity method, the Group recognises its share of the investee’s profit or loss and other
comprehensive income as investment income or losses and other comprehensive income respectively, and
adjusts the carrying amount of the investment accordingly. Once the investee declares any cash dividends or
profit distributions, the carrying amount of the investment is reduced by the amount attributable to the Group.
Changes in the Group’s share of the investee’s owners’ equity, other than those arising from the investee’s net
profit or loss, other comprehensive income or profit distribution (referred to as “other changes in owners’
equity”), is recognised directly in the Group’s equity, and the carrying amount of the investment is adjusted
accordingly. In calculating its share of the investee’s net profits or losses, other comprehensive income and
other changes in owners’ equity, the Group recognises investment income and other comprehensive income
after making appropriate adjustments to align the accounting policies or accounting periods with those of the
Group based on the fair value of the investee’s identifiable net assets at the date of acquisition.
When the Group becomes capable of exercising joint control or significant influence (but not control) over an
investee due to additional investment or other reasons, the Group uses the fair value of the previously-held
equity investment, together with additional investment cost, as the initial investment cost under the equity
method. The difference between the fair value and carrying amount of the previously-held equity investment,
and the accumulated changes in fair value included in other comprehensive income, shall be transferred to
profit or loss for the current period upon commencement of the equity method.
When the Group can no longer exercise control over an investee due to partial disposal of the equity
investment or other reasons, and the remaining equity after disposal can exercise joint control of or significant
influence over an investee, the remaining equity is adjusted as using equity method from acquisition. When
the remaining equity can no longer exercise joint control of or significant influence over an investee, the
remaining equity investment shall be accounted for using Accounting Standard for Business Enterprises No. 22-
Recognition and Measurement of Financial Instruments, and the difference between the fair value and the
carrying amount of the remaining equity investment shall be charged to profit or loss for the current period at
the date of loss of control.
When the Group can no longer exercise control over an investee due to new capital injection by other investors,
and the Group can exercise joint control of or significant influence over an investee, the Group recognizes its
share of the investee’s new added net assets using new shareholding percentage. The difference between its
new share of the investee’s new added net assets and its decreased shareholding percentage of the original
investment is recognized in profit or loss. And the Group adjusts to the equity method using the new
shareholding percentage as if it uses the equity method since it obtains the investment.
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Unrealised profits and losses resulting from transactions between the Group and its associates or joint
ventures are eliminated to the extent of the Group’s interest in the associates or joint ventures. Unrealised
losses resulting from transactions between the Group and its associates or joint ventures are eliminated in the
same way as unrealised gains but only to the extent that there is no impairment.
（3）Criteria for determining the existence of joint control or significant influence over an investee
Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions
about the relevant activities require the unanimous consent of the parties sharing control. When assessing
whether the Group can exercise joint control over an investee, the Group first considers whether no single
participant party is in a position to control the investee’s related activities unilaterally, and then considers
whether strategic decisions relating to the investee’s related activities require the unanimous consent of all
participant parties that sharing of control. All the parties, or a group of the parties, control the arrangement
collectively when they must act together to direct the relevant activities. When more than one combination of
the parties can control an arrangement collectively, joint control does not exist. A party that holds only
protective rights does not have joint control of the arrangement.
Significant influence is the power to participate in the financial and operating policy decisions of an investee
but does not have control or joint control over those policies. When determining whether the Group can
exercise significant influence over an investee, the effect of potential voting rights (for example, warrants,
share options and convertible bonds) held by the Group or other parties that are currently exercisable or
convertible shall be considered.
When the Group, directly or indirectly through subsidiaries, owns 20% of the investee (including 20%) or more
but less than 50% of the voting shares, it has significant influence over the investee unless there is clear
evidence to show that in this case the Group cannot participate in the production and business decisions of
the investee, and cannot form a significant influence. When the Group owns less than 20% of the voting shares,
generally it does not have significant influence over the investee, unless there is clear evidence to show that in
this case the Group can participate in the production and business decisions of the investee so as to form a
significant influence.
（4）Method of impairment testing and impairment provision
For investments in subsidiaries, associates and joint ventures, refer to Note V. 31 for the Group’s method of
asset impairment.
23. Investment property
Investment properties are properties held either to earn rental income or for capital appreciation or for both.
The Group’s investment properties include leased houses, leased buildings, leased land use rights. In addition,
for a vacant building held by the company for operating lease, if the board of directors (or a similar institution)
makes a written resolution expressly indicating that it is used for operating lease and the intention of holding
does not change in the short term, it is also considered as Investment property.
Investment properties are initially measured at acquisition cost, and depreciated or amortized using the same
policy as that for fixed assets or intangible assets.
For the impairment of the investment properties accounted for using the cost model, refer to Note V.31.
The balance of the disposal income from the sale, transfer, scrapping or damage of the investment real estate
after deducting its book value and relevant taxes and fees shall be recorded into the current profit and loss.
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24. Fixed assets
（1）Recognition of fixed assets
Fixed assets represent the tangible assets held by the Group for use in production of goods, use in supply of
services, rental or for administrative purposes with useful lives over one accounting year.
Fixed assets are only recognised when its related economic benefits are likely to flow to the Group and its cost
can be reliably measured.
Fixed asset are initially measured at cost.
Subsequent expenses related to fixed assets shall be recorded into cost of fixed assets when its related
economic benefits are likely to flow to the Group and its cost can be reliably measured; the cost of daily repairs
to fixed assets that do not meet the conditions for subsequent expenditures for capitalization of fixed assets,
at the time of occurrence, shall be recorded into the profit or loss of the current period or the cost of the
related assets. For the part that is replaced, its carrying amount is derecognized
（2）Depreciation of fixed assets
The cost of a fixed asset is depreciated using the straight-line method since the state of intended use, unless
the fixed asset is classified as held for sale. Not considering impairment provision, the estimated useful lives,
residual value rates and depreciation rates of each class of fixed assets are as follows:
Estimated useful
life
Depreciation Residual value
Class Depreciation rate %
Method rate %
（years）
straight-line
Plant and buildings depreciation 30 5 3.17%
Motor vehicles straight-line
depreciation 6 5 15.83%
Electronic equipment
straight-line
and others 5 5 19.00%
depreciation
The cost of a fixed asset is depreciated using the straight-line method since the state of intended use, unless
the fixed asset is classified as held for sale. Not considering impairment provision, the estimated useful lives,
residual value rates and depreciation rates of each class of fixed assets are as table above.
For impaired fixed assets, cumulative amount of impairment provision is deducted in determining the
depreciation rate.
(3) Recognition, measurement and depreciation of fixed assets acquired under finance leases
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Fixed assets under finance leases are recognised if they meet one or more of the following criteria: ①The
ownership of leased assets is transferred to the Company by the end of the lease term. ②The Company has
the option to purchase the asset at a price that is expected to be sufficiently lower than the fair value at the
date of the option becomes exercisable for it to be reasonably certain, at the inception of the lease, that the
option will be exercised. ③Even if the ownership of assets is not transferred, the lease term covers the major
part of the useful life of the asset. ④At the inception of lease, the present value of minimum lease payments
amount to substantially all of the fair value of leased asset. ⑤Leased assets are of a specialized nature that
only the Company can use them without major modifications.
An asset acquired under a finance lease is measured at an amount equal to the lower of its fair value and the
present value of the minimum lease payments, each determined at the inception of the lease. Long-term
payable is recorded at an amount equal to the sum of all future minimum lease payments. The difference
between the carrying amount of the leased assets and the minimum lease payments is accounted for as
unrecognised finance charges. Initial direct costs attributable to a finance lease incurred during the process of
lease negotiation and the signing of the lease agreement, including service charges, attorney's fees, travelling
expenses and stamp duty, that are incurred by the Company are added to the carrying amount of the leased
asset. Unrecognised finance charges are recognised as finance charge for the period using the effective interest
method over the lease term.
Depreciation is accounted for in accordance with the accounting policies of fixed assets. If there is reasonable
certainty that the Company will obtain ownership of a leased asset at the end of the lease term, the leased
asset is depreciated over its estimated useful life. Otherwise, the leased asset is depreciated over the shorter
of the lease term and its estimated useful life.
25. Construction in progress
Construction in progress is recognized based on the actual construction cost, including all expenditures
incurred for construction Items, capitalised borrowing costs and any other costs directly attributable to
bringing the asset to working condition for its intended use.
Construction in progress is transferred to fixed asset when it is ready for its intended use.
For the impairment of construction in progress, please refer to Note V.31
26. Borrowing costs
（1）Capitalisation criteria
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying
asset shall be capitalised as part of the cost of that asset. Other borrowing costs are expensed in profit or loss
as incurred. The capitalisation of borrowing costs shall commence only when the following criteria are met:
① capital expenditures have been incurred, including expenditures that have resulted in payment of cash,
transfer of other assets or the assumption of interest-bearing liabilities;
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② borrowing costs have been incurred;
③ the activities that are necessary to prepare the asset for its intended use or sale have commenced.
（2）Capitalisation period
The capitalisation of borrowing costs ceases when the asset under acquisition or construction becomes ready
for its intended use, the borrowing costs incurred thereafter are recognised in profit or loss for the current
period.
Capitalisation of borrowing costs is suspended during periods in which the acquisition or construction of a
fixed asset is interrupted abnormally and the interruption lasts for more than 3 months, until the acquisition or
construction is resumed.
（3）Capitalisation rate of borrowing costs and calculation basis of capitalised amount
For interest expense actually incurred on specific borrowings, the eligible capitalised amount is the net amount
of the borrowing costs after deducting any investment income earned before some or all of the funds are used
for expenditures on the qualifying asset. To the extent that the Group borrows funds generally and uses them
for the purpose of obtaining a qualifying asset, the Group shall determine the amount of borrowing costs
eligible for capitalisation by applying a capitalisation rate to the expenditures on that asset, the capitalisation
rate shall be the weighted average of the borrowing costs applicable to the borrowings of the Group that are
outstanding during the period, other than borrowings specifically for the purpose of obtaining a qualifying
asset.
In the capitalisation period, exchange differences of specific borrowings in foreign currency shall be capitalised;
exchange differences of general borrowings in foreign currency is recognised in profit or loss for the current
period.
27. Biological assets
28. Oil and gas assets
29. Right-of-use assets
(1) Conditions for the confirmation of the right-of-use assets
The Group's right-of-use assets refer to the Group's right to use the leased assets during the lease term as the
lessee.
On the beginning date of the lease period, the right-of-use assets shall be initially measured at cost. The cost
includes: the initial measurement amount of the lease liability; For the amount of lease payment paid on or
before the commencement date of the lease term, if there is a lease incentive, the relevant amount of lease
incentive already enjoyed will be deducted; Initial direct expenses incurred by the Group as the lessee; The costs
which the Group, as the Lessee, expects to incur in dismantling and removing the Leased Assets, restoring the
premises on which the Leased Assets are located or restoring the Leased Assets to the state agreed in the Lease
Terms. The Group, as the lessee, shall confirm and measure the costs of demolition and restoration in
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accordance with the Accounting Standards for Business Enterprises No. 13 - Contingencies. Subsequent
adjustments are made for any remeasurement of lease liabilities.
(2) Depreciation method of the right-of-use assets
The Group uses the straight line method of depreciation. Where the Group, as the lessee, can reasonably
determine that it obtains the ownership of the leased assets upon expiration of the lease term, depreciation shall
be accrued over the remaining service life of the leased assets. Where it is impossible to reasonably determine
that the ownership of the leased asset can be acquired at the expiration of the lease term, depreciation shall be
accrued in the shorter period between the lease term and the remaining useful life of the leased asset.
(3) See Note V.31 for the impairment test method of the right-of-use assets and the provision for impairment.
30. Intangible assets
（1）Valuation, Useful life and Impairment
Intangible assets include software, land use right, and patent rights etc.
Intangible assets are stated at actual cost upon acquisition and the useful economic lives are determined at the
point of acquisition. When the useful life is finite, amortisation method shall reflect the pattern in which the
asset’s economic benefits are expected to be realised. If the pattern cannot be determined reliably, the
straight-line method shall be used. An intangible asset with an indefinite useful life shall not be amortised.
The Group shall review the useful life and amortisation method of an intangible asset with a finite useful life at
least at each year end. Changes of useful life and amortisation method shall be accounted for as a change in
accounting estimate.
An intangible asset shall be derecognised in profit or loss when it is not expected to generate future economic
benefits.
For the impairment of intangible assets, please refer to Note V.31 Impairment of Assets.
（2）Accounting policy for internal research and development expenditure
31. Impairment of assets
The impairment of long-term equity investments in subsidiaries, associates and joint ventures, investment
properties measured using a cost model, fixed assets, construction in progress, productive biological assets
measured using a cost model, intangible assets, goodwill, proven oil and gas mining rights and wells and related
facilities, etc. (Excluding inventories, investment property measured using a fair value model, deferred tax assets
and financial assets) is determined as follows:
At each balance sheet date, the Group determines whether there is any indication of impairment. If any
indication exists, the recoverable amount of the asset is estimated. In addition, the Group estimates the
recoverable amounts of goodwill, intangible assets with indefinite useful lives and intangible assets not ready
for use at each year-end, irrespective of whether there is any indication of impairment.
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The recoverable amount of an asset is the higher of its fair value less costs to sell and its present value of
expected future cash flows. The recoverable amount is estimated for each individual asset. If it is not possible
to estimate the recoverable amount of each individual asset, the Group determines the recoverable amount
for the asset group to which the asset belongs. An asset group is the smallest identifiable group of assets that
generates cash inflows that are largely independent of the cash inflows from other assets or asset groups.
An impairment loss is recognised in profit or loss when the recoverable amount of an asset is less than its
carrying amount. A provision for impairment of the asset is recognised accordingly.
For goodwill impairment test, the carrying amount of goodwill arising from a business combination is allocated
reasonably to the relevant asset group since the acquisition date. If the carrying amount of goodwill is unable
to be allocated to asset group, the carrying amount of goodwill will be allocated to asset portfolio. Asset group
or portfolio of asset group is asset group or portfolio of asset group which can be benefit from synergies of a
business combination and is not greater than the reportable segment of the Group.
In impairment testing, if impairment indication exists in asset group or portfolio of asset group containing
allocated goodwill, impairment test is first conducted for asset group or portfolio of asset group that does not
contain goodwill, and corresponding recoverable amount is estimated and any impairment loss is recognized.
Then impairment test is conducted for asset group or portfolio of asset group containing goodwill by
comparing its carrying amount and its recoverable amount. If the recoverable amount is less than the carrying
amount, impairment loss of goodwill is recognized.
Once an impairment loss is recognised, it is not reversed in a subsequent period.
32. Long-term deferred expenses
Long-term deferred expenses are recorded at the actual cost, and amortized using a straight-line method
within the benefit period. For long-term deferred expense that cannot bring benefit in future period, the
Group recognized its amortised cost in profit or loss for the current period.
33. Contract liabilities
Contract liabilities refer to the obligations of the company and its subsidiaries to transfer goods or services to
customers for consideration received or receivable from customers. Contract assets and contract liabilities
under the same contract are presented on a net basis.
34. Employee benefits
（1）Scope of employee benefits
Employee benefits refer to all forms of consideration or compensation given by the Group in exchange for
service rendered by employees or for the termination of employment relationship. Employee benefits include
short-term employee benefits, post-employment benefits, termination benefits and other long-term employee
benefits. Benefits provided to the Group’s spouse, children, dependents, family members of deceased
employees or other beneficiaries are also part of the employee benefits.
According to liquidity, employee benefits are presented as “employee benefits payable” and “long-term
employee benefits payable” on the balance sheet.
In the current period, the Group has accrued for the actual wages, bonuses, medical insurance for employees
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based on standard rate, work injury insurance and maternity insurance and other social insurance and housing
fund incurred and these are recognised as liabilities and corresponding costs in the profit or loss. If these
liabilities are not expected to be fully paid 12 months after the end of the reporting period in which employee
renders the service to the Group, and if the financial impact is significant, these liabilities shall be discounted
using the net present value method.
（2）Post-employment benefits
Post-employment benefit plan includes defined contribution plans and defined benefit plans. Defined
contribution plans are post-employment benefit plans under which an enterprise pays fixed contributions into
a separate fund and will have no future obligations to pay the contributions. Defined benefit plans are post-
employment benefit plans other than defined contribution plans.
Defined contribution plans
Defined contribution plans include primary endowment insurance, unemployment insurance and corporate
pension plan, etc.
Besides basic pension insurance, the Group establishes corporate pension plans in accordance with the related
policies of corporate pension regulations. Employees can join the pension plan voluntarily. The Group has no
other significant commitment of employees’ social security.
The Group shall recognise, in the accounting period in which an employee provides service, the contribution
payable to a defined contribution plan as a liability, with a corresponding charge to the profit or loss for the
current period or the cost of a relevant asset.
Defined benefit plans
For a defined benefit plan, an actuarial valuation is performed by an independent actuary at the annual
balance sheet date to determine the cost of providing benefits using the expected accrued benefit unit
method. The employee compensation cost caused by the benefit plan of the Group includes the following
components:
① Service cost, including current service cost, past service cost and settlement profit or loss. Including, the
current service cost refers to the increase in the present value of the defined benefit plan obligation caused by
the current provision of services by employees; The past service cost refers to the increase or decrease in the
present value of the defined benefit plan obligations related to the employee services of the previous period
as a result of the modification of the defined benefit plan.
② Set the net interest on the net liabilities or net assets of the benefit plan, including the interest income on
the plan assets, the interest expense on the defined benefit plan obligations and the interest on the impact of
the asset cap.
③ The changes caused by the remeasurement of the net liabilities or net assets of the benefit plan.
Unless other accounting standards require or allow the cost of employee benefits to be included in the cost of
assets, the Group will include items ① and ② above in the current profit and loss; Item ③ is included in other
comprehensive income and will not be turned back to profit and loss in subsequent accounting periods. When
the originally defined benefit plan is terminated, the part originally included in other comprehensive income
within the scope of equity is carried forward to undistributed profit.
（3）Termination benefits
The Group provides for termination benefits to the employees and shall recognise an employee benefits
liability for termination benefits, with a corresponding charge to the profit or loss for the current period, at the
earlier of the following dates: When the Group cannot unilaterally withdraw the offer of the termination
benefits because of an employment termination plan or a redundancy proposal; or when the Group recognises
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the costs or expenses relating to a restructuring that involves the payment of the termination benefits.
For employees who implement the internal retirement plan, the economic compensation before the official
retirement date belongs to dismiss welfare. During the normal retirement date when the employees stop
providing services, the salary and social insurance premium to be paid by the employees who retire within the
Group shall be included in the profit and loss of the current period in a lump sum. Economic compensation
after the official retirement date (such as the normal pension) shall be treated as after-service benefits.
（4）Other long-term employee benefits
Other long-term employee benefits provided by the Group to the employees satisfied the conditions for
classifying as a defined contribution plan; those benefits shall be accounted for in accordance with the above
requirements relating to defined contribution plan. When the benefits satisfied a defined benefit plan, it shall
be accounted for in accordance with the above requirements relating to defined benefit plan, but the
movement of net liabilities or assets in re-measurement of defined defined benefit plan shall be recorded in
profit or loss for the current period or cost of relevant assets.
35. Lease liabilities
Except for short-term leases and leases of low-value assets, the Group initially measures lease liabilities at the
inception date of the lease term at the present value of unpaid lease payments on that date. The Group uses
the interest rate implicit in the lease as the discount rate to calculate the present value of the lease payments.
If the interest rate implicit in the lease cannot be determined, the incremental borrowing rate will be used as
the discount rate.
Lease payments refer to the payments made by the Group to the lessor in relation to the right to use the
leased asset during the lease term, including: fixed payments and substantive fixed payments, and if there is a
lease incentive, deduct the amount related to the lease incentive; Variable lease payments that depend on an
index or rate; The exercise price of a call option that the Group is reasonably certain to exercise; If the lease
term reflects that the Group will exercise the option to terminate the lease, the amount to be paid for
exercising the option to terminate the lease; The estimated payables based on the residual value of guarantees
provided by the Group.
Variable lease payments that depend on an index or rate are initially measured based on the index or rate at
the commencement date of the lease term. Variable lease payments that are not included in the measurement
of lease liabilities will be included in the current profit and loss when they are actually incurred. After the
commencement date of the lease term, the Group calculates the interest expense of the lease liability in each
period of the lease term at a fixed periodic interest rate, and includes it in the current profit and loss or the
cost of related assets.
After the commencement date of the lease term, the Group will re-measure the lease liabilities and adjust the
corresponding right-of-use assets under the following circumstances. If the book value of the right-of-use
assets has been reduced to zero and the lease liabilities still need to be further reduced, the difference will be
included in the current profit and loss. If the lease term changes or the evaluation result of the purchase
option changes, the Group will remeasure the lease liability at the present value calculated by changed lease
payments and the revised discount rate; If the payable amount of the guaranteed residual value or the index or
ratio used to determine lease payments changes, the Group will remeasure the lease liability based on the the
present value calculated by revised lease payments and original discount rate. If changes in floating interest
rates result in changes in lease payments, the Group will recalculate the lease liability using the revised
discount rate.
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36. Provisions
A provision is recognised for an obligation related to a contingency if all the following conditions are satisfied:
(1) the Group has a present obligation;
(2) it is probable that an outflow of economic benefits will be required to settle the obligation; and
(3) the amount of the obligation can be estimated reliably.
A provision is initially measured at the best estimate of the expenditure required to settle the related present
obligation. Factors pertaining to a contingency such as the risks, uncertainties and time value of money are
taken into account as a whole in reaching the best estimate.Where the effect of the time value of money is
material, provisions are determined by discounting the expected future cash flows. The Group reviews the
carrying amount of a provision at the balance sheet date and adjusts the carrying amount to the current best
estimate.
If all or part of the expenditure necessary for settling the provision is expected to be compensated by a third
party, the amount of compensation is separately recognized as an asset when it is basically certain to be
received. The recognized compensation amount shall not exceed the carrying amount of the provision.
37. Share-based payment
38. Preferred shares, perpetual bonds and other financial instruments
39. Revenue
(1) General principles
The Group has fulfilled its contractual obligation to recognize revenue when the customer acquires control of
the relevant goods or services.
If the contract contains two or more performance obligations, the Group shall, on the commencement date of
the contract, allocate the transaction price to each single performance obligation according to the relative
proportion of the individual selling price of the commodity or service committed by each single performance
obligation, and measure the income according to the transaction price allocated to each single performance
obligation.
If one of the following conditions is satisfied, the Group shall perform its obligations within a certain period of
time; otherwise, it belongs to the performance obligation at a certain point:
① The Client obtains and consumes the economic benefits brought by the Group's performance at the same
time of the Group's performance.
② The customer can control the goods under construction during the performance of the Group.
③ The commodities produced by the Group during the performance of the Contract have irreplaceable
purposes, and the Group has the right to collect payment for the accumulated part of the performance
completed so far during the whole period of the Contract.
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For the performance obligations performed within a certain period of time, the Group shall recognize the
income in accordance with the performance progress within that period.If the performance progress cannot
be reasonably determined and the Group is expected to be compensated for the costs already incurred, the
revenue shall be recognized according to the amount of the costs already incurred until the performance
progress can be reasonably determined.
For performance obligations performed at a certain point, the Group recognizes revenue at the point when the
customer acquires control of the relevant goods or services.In determining whether a customer has acquired
control of goods or services, the Group will take into account the following indications:
① The Group has a current right to receive payment for the goods or services, that is, the Customer has a
current obligation to pay for the goods.
② The Group has transferred the legal ownership of the commodity to the customer, that is, the customer has
the legal ownership of the commodity.
③ The Group has transferred the goods in kind to the customer, that is, the customer has physical possession
of the goods.
(4) The Group has transferred the main risks and rewards on the ownership of the commodity to the customer,
that is, the customer has acquired the main risks and rewards on the ownership of the commodity.
⑤ The customer has accepted the goods or services.
⑥ Other indications that the customer has acquired control of the product.
The Group's right to receive consideration for goods or services transferred to a customer (and this right
depends on other factors other than the passage of time) is a contract asset which is subject to impairment on
the basis of expected credit losses (see Note V, 10 (5)). The Group's right, unconditional (depending only on
the passage of time) to collect consideration from customers is shown as a receivable. The Group's obligation
to transfer goods or services to customers for which it has received or receivable consideration is a contractual
liability.
The contract assets and contract liabilities under the same contract shall be presented on a net basis. If the net
amount is the debit balance, it shall be presented under the item of "Contract Assets" or "Other Non-current
Assets" according to its liquidity; If the net amount is a credit balance, it shall be shown under the item
"Contract Liabilities" or "Other Non-current Liabilities" according to its liquidity.
（2）Specific methods
The specific methods of the Group's revenue recognition are as follows:
① The method for recognizing revenue from property sales
(1) the sale contract has been signed and filed with housing construction bureau; (2) the property development
is completed and pass the acceptance; (3) For Lump-sum payment, revenue is recognized by the group when the
consideration is fully received. For instalment payment, revenue is recognized when the first installment has
been received and the bank mortgage approval procedures have been completed. (4) completed the procedures
for entering the partnership in accordance with the requirements stipulated in sale contract.
② The method for recognizing revenue from property services provided
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According to property service contract, agreed service period, area served and unit price, revenue is recognized
evenly within agreed service period.
③ The method for recognizing revenue from construction activities
As the customer can control the goods under construction during the performance of the Group, the group shall
recognize the income in accordance with the performance progress within a certain period of time (except for
performance progress cannot be reasonably determined). The group shall determine the performance progress
based on cost incurred. If the performance progress cannot be reasonably determined and the Group is expected
to be compensated for the costs already incurred, the revenue shall be recognized according to the amount of
the costs already incurred until the performance progress can be reasonably determined. If the contract costs
cannot be recovered, the cost should be recognized immediately in current period when incurred. When the
estimated total cost of the contract is likely to exceed the total revenue of the contract, the cost of the main
business and the estimated liabilities shall be recognized in accordance with the unexecuted loss contract. The
loss shall be recognized as current cost and put into provisions.
④ The method for recognizing revenue from other income
Revenue from other income include income from hotel operations, etc. Rooms revenue from hotel operations
shall be recognized in accordance with the performance progress within agreed period, as the client obtains and
consumes the economic benefits brought by the Group’s performance and the group’s performance obligations
has performed at a certain period of time. For other income, the group recognizes revenue at the point when the
customer acquires control of the relevant goods or services, which indicate the group has a right to receive
payment for services or goods provided in accordance with the relevant contract.
40. Government grants
A government grant is recognised when there is reasonable assurance that the grant will be received and that
the Group will comply with the conditions attaching to the grant.
If a government grant is in the form of a transfer of a monetary asset, it is measured at the amount received or
receivable. If a government grant is in the form of a transfer of a non-monetary asset, it is measured at fair
value. If fair value cannot be reliably determined, it is measured at a nominal amount of CNY 1.
Government grants related to assets are grants whose primary condition is that the Group qualifying for them
should purchase, construct or otherwise acquire long-term assets. Government grants related to income are
grants other than those related to assets.
For government grants with unspecified purpose, the amount of grants used to form a long-term asset is
regarded as government grants related to an asset, the remaining amount of grants is regarded as government
grants related to income. If it is not possible to distinguish, the amount of grants is treated as government
grants related to income.
A government grant related to an asset is offset against the carrying amount of the related asset, or.recognised
as deferred income and amortised to profit or loss over the useful life of the related asset on a reasonable and
systematic manner. A grant that compensates the Group for expenses or losses already incurred is recognised
in profit or loss or offset against related expenses directly. A grant that compensates the Group for expenses or
losses to be incurred in the future is recognised as deferred income, and included in profit or loss or offset
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against related expenses in the periods in which the expenses or losses are recognised. The Group applies a
consistent approach to same or similar government grant transactions.
A grant related to ordinary activities is recognised as other income or offset against related expenses based on
the economic substance. A grant not related to ordinary activities is recognised as non-operating income.
When a recognised government grant is reversed, carrying amout of the related asset is adjusted if the grant
was initially recognized as offset against the carrying amount of the related asset. If there is balance of relevant
deferred income, it is offset against the carrying amount of relevant deferred income. Any excess of the
reversal to the carrying amount of deferred income is recognised in profit or loss for the current period. For
other circumstances, reversal is directly recognized in profit or loss for the current period.
41. Deferred tax assets and Deferred tax liabilities
Income tax comprises of current tax and deferred tax. Current tax and deferred tax are recognised in profit or
loss except to the extent that they relate to transactions or items recognised directly in equity and goodwill
arising from a business combination.
Deferred tax assets and deferred tax liabilities arise from deductible and taxable temporary differences
respectively, being the differences between the carrying amounts of assets and liabilities for financial reporting
purposes and their tax bases.
All the taxable temporary differences are recognized as deferred tax liabilities except for those incurred in the
following transactions:
(1) initial recognition of goodwill, or assets or liabilities in a transaction that is not a business combination
and that affects neither accounting profit nor taxable profit (or deductible loss);
(2) taxable temporary differences associated with investments in subsidiaries, associates and joint ventures,
and the Group is able to control the timing of the reversal of the temporary difference and it is probable that
the temporary difference will not reverse in the foreseeable future.
The Group recognises a deferred tax asset for deductible temporary differences, deductible losses and tax
credits carried forward to subsequent periods, to the extent that it is probable that future taxable profits will
be available against which deductible temporary differences, deductible losses and tax credits can be utilised,
except for those incurred in the following transactions:
(1) a transaction that is not a business combination and that affects neither accounting profit nor taxable
profit (or deductible loss);
(2) deductible temporary differences associated with investments in subsidiaries, associates and joint
ventures, the corresponding deferred tax asset is recognized when both of the following conditions are
satisfied: it is probable that the temporary difference will reverse in the foreseeable future; and it is probable
that taxable profits will be available in the future against which the temporary difference can be utilized.
At the balance sheet date, deferred tax is measured based on the tax consequences that would follow from the
expected manner of recovery or settlement of the carrying amount of the assets and liabilities, using tax rates
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enacted at the reporting date that are expected to be applied in the period when the asset is recovered or the
liability is settled.
The carrying amount of a deferred tax asset is reviewed at each balance sheet date, and is reduced to the
extent that it is no longer probable that the related tax benefits will be utilised. Such reduction is reversed to
the extent that it becomes probable that sufficient taxable profits will be available.
42. Leases
(1) Identification of leases
On the commencement date of the contract, the Group, as lessee or lessor, assesses whether the customer
under the contract is entitled to receive almost all the economic benefits arising from the use of the identified
assets during the use period and to direct the use of the identified assets during the use period.The Group
considers the contract to be a lease or an inclusive lease if one of the parties to the contract relinquishes control
over the use of one or more identified assets for a certain period of time in exchange for consideration.
(2) The Group acts as the lessee
On the commencement date of the lease, the Group recognizes the right-of-use assets and lease liabilities for all
leases, except for simplified short-term leases and leases of low value assets.
For the accounting policy of the Right-of-use assets, see Note V.29. For the accounting policy of lease liabilities,
please refer to Note V. 35
Lease liabilities are initially measured at the present value of the outstanding lease payments at the
commencement date of the lease at the embedded interest rate on the lease. The rental payment amount
includes: fixed payment amount and substantial fixed payment amount. If there is lease incentive amount, the
relevant amount of lease incentive amount will be deducted. Variable lease payments depending on an index or
ratio; The exercise price of the Option provided that the Lessee is reasonably certain that the Option will be
exercised; The amount to be paid to exercise the option to terminate the lease if the lease term reflects that the
lessee will exercise the option to terminate the lease; And the amount expected to be payable based on the
residual value of the security provided by the Lessee. The interest expense of the lease liability in each period of
the lease term shall be calculated in accordance with the fixed periodic interest rate and recorded into the profit
and loss of the current period. The variable lease payment not included in the measurement of lease liabilities
shall be recorded into the current profit and loss when actually incurred.
Short term lease
Short-term tenancy is a tenancy for a period of not more than 12 months at the commencement date of the
tenancy, except for tenancies that include a purchase option.
The Group will record the lease payment amount of short-term lease into the cost of relevant assets or current
profit and loss in each period of the lease term according to the straight-line method [or other systemically
reasonable method].
For short-term lease, the Group chooses to adopt the above simplified treatment method for the items that
meet the short-term lease conditions in the following asset types according to the categories of leased assets.
Low value asset leasing
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Leasing of low-value assets refers to the leasing of a single leased asset whose value is less than CNY 100,000.00
when it is a brand-new asset.
The Group will include the lease payment of the low-value asset lease into the cost of the relevant asset or
current profit and loss in each period of the lease term according to the straight-line method.
For low-value asset leases, the Group chooses to adopt the above simplified treatment method according to the
specific situation of each lease.
(3) The Group acts as the lessor
When the Group acts as the lessor, the leases that substantially transfer all the risks and rewards related to the
ownership of the assets are recognized as financial leases, and other leases other than financial leases are
recognized as operating leases.
Finance lease
In the case of financial leasing, the Group takes the net lease investment as the book value of the receivable
finance lease funds at the beginning of the lease period, and the net lease investment is the sum of the
unguaranteed residual value and the present value of the unreceived lease income at the beginning of the lease
period discounted at the embodied interest rate.The Group, as the lessor, calculates and recognizes interest
income for each period of the lease term at a fixed periodic rate.The variable lease payment obtained by the
Group as the lessor and not included in the measurement of the net lease investment shall be recorded into the
current profit and loss when actually incurred.
The termination recognition and impairment of financial lease receivable shall be accounted for in accordance
with the provisions of the Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement
of Financial Instruments and the Accounting Standards for Business Enterprises No. 23 - Transfer of Financial
Assets.
Operating lease
For the rent in the operating lease, the Group shall recognize the profits and losses of the current period in
accordance with the straight-line method during each period of the lease term. The initial direct expenses
incurred in connection with the operating lease shall be capitalized, allocated on the same basis as the
recognition of rental income during the lease term and recorded into the current profit and loss in installments.
The variable lease payments obtained in connection with the operating lease and not included in the lease
receipts shall be recorded into the current profit and loss when actually incurred.
Change of Lease
In addition to the simplified method for contract changes directly caused by COVID-19 epidemic, if there is a
change in the operating lease, the group shall, as of the effective date of the change, treat it as a new lease, the
amount received in advance or in respect of the lease receivable relating to the lease prior to the change shall be
deemed to be the amount received for the new lease.
In addition to the simplified method of contract changes directly caused by COVID-19 epidemic, if the financial
lease is changed and the following conditions are met at the same time, the group accounts for the change as a
separate lease: 1 the change extends the scope of the lease by adding the right to use one or more leased assets;
2 the increased consideration is equivalent to the amount of the individual price of the extended portion of the
lease, adjusted in accordance with the circumstances of the contract.
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Where a change in a financial lease is not accounted for as a separate lease, the group shall treat the changed
lease as follows: 1 if the change becomes effective on the lease commencement date, if the lease will be
classified as an operating lease, the group will treat it as a new lease from the effective date of the lease change,
the book value of the leased asset shall be the net investment in the lease prior to the effective date of the lease
change. 2 if the change takes effect on the effective date of the lease, the lease will be classified as a financial
lease, the accounting treatment of the group is in accordance with the provisions of the "Accounting Standards
for enterprises No. 22-recognition and measurement of financial instruments" concerning modification or
renegotiation of contracts.
(4) Rental concession caused by COVID-19 epidemic
For rent concessions such as rent remission or deferred payment reached between the Group and the lessee
or lessor on existing lease contracts directly caused by the COVID-19 epidemic, and meeting the following
conditions, the Group adopts a simplified method for [houses and buildings] and other categories of leases:
(1) The lease consideration after the concession is reduced or basically unchanged compared with that before
the concession, in which, the lease consideration is not discounted or discounted at the discount rate before
the concession;
② The concession is only for the lease payment payable before June 30, 2022;
③ There are no significant changes in other terms and conditions of the lease after comprehensive
consideration of qualitative and quantitative factors.
The Group does not evaluate whether a lease change has occurred.
When the Group is the lessee, the Group will continue to calculate the interest expense of the lease liability at
the same discount rate as before the concession and record it into the current profit and loss, and continue to
carry out depreciation and other subsequent measurements on the Right-of-use assets in the same way as
before the concession. In case of rent remission, the Group will take the remitted rent as the variable lease
payment amount. When the original rent payment obligation is terminated by reaching a concession
agreement, the Group will deduct the relevant asset cost or expense by the amount discounted at the
undiscounted or pre-concession discount rate, and adjust the lease liability accordingly. In case of deferred
rent payment, the Group shall write off the lease liabilities confirmed earlier when actually paying the rent. For
short-term leases with simplified treatment and leases of low-value assets, the Group continues to record the
rental under the original contract as the cost or expense of the relevant assets in the same manner as before
the concession. In case of rent remission or reduction, the Group shall treat the remission or reduction of rent
as variable lease payment and write off the cost or expense of relevant assets during the remission or
reduction period. If the rent is delayed in payment, the Group shall recognize the rent payable during the
original payment period as the payable amount, and deduct the payable amount confirmed earlier when the
actual payment is made.
When the Group acts as the lessor, for the operating lease, the Group continues to recognize the original
contract rent as lease income in the same way as before the concession. In case of rent remission or reduction,
the Group shall treat the remission or reduction as variable lease payment and deduct the lease income during
the remission or reduction period. If the rent collection is delayed, the Group will recognize the rent collected as
receivable during the original collection period, and deduct the receivable confirmed in the earlier period when
the rent is actually received. For finance leases, the Group continues to calculate interest and recognize it as
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lease income at the same discount rate as before the concession. In case of rent reduction or reduction, the
Group will take the rent reduced or reduced as the variable lease payment amount. When the right to charge the
original rent is waived by reaching a concession agreement, the Group will deduct the original confirmed lease
income by the amount of discount before the concession or at the discount rate before the concession, and
record the insufficient write-off into investment income, and adjust the receivable finance lease funds
accordingly. In case of delayed payment of rent, the Group shall write off the finance lease receivable confirmed
in the earlier period when it actually receives the rent.
43. Fair value measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date.
The Group measures related assets or liabilities at fair value assuming the assets or liabilities are exchanged in an
orderly transaction in the principal market; in the absence of a principal market, assuming the assets or liabilities
are exchanged in an orderly transaction in the most advantageous market. Principal market (or the most
advantageous market) is the market that the Group can normally enter into a transaction on measurement date.
The Group adopts the presumptions that would be used by market participants in achieving the maximized
economic value of the assets or liabilities.
For financial assets or financial liabilities with active markets, the Group uses the quoted prices in active markets
as their fair value. Otherwise, the Group uses valuation technique to determine their fair value.
Fair value measurement of a non-financial asset takes into account market participants’ ability to generate
economic benefits using the asset in its best way or by selling it to another market participant that would best
use the asset.
The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are
available to measure fair value, maximizing the use of relevant observable inputs, and using unobservable inputs
only if the observable inputs aren’t available or impractical.
Fair value level for assets and liabilities measured or disclosed at fair value in the financial statements are
determined according to the significant lowest level input to the entire measurement: Level 1 inputs are quoted
prices (unadjusted) in active markets for identical assets or liabilities that the Group can access at the
measurement date; Level 2 inputs are inputs other than quoted prices included within Level 1 that are
observable for the assets or liabilities, either directly or indirectly; Level 3 inputs are unobservable inputs for the
assets or liabilities.
At the balance sheet date, the Group revalues assets and liabilities being measured at fair value continuously in
the financial statements to determine whether to change the levels of fair value measurement.
44. Other significant accounting judgments and estimates
45. Changes in significant accounting policies and accounting estimates
（1）Significant changes in accounting policies
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□ Applicable √ Not Applicable
（2）Significant changes in accounting estimates
□ Applicable √ Not Applicable
46. Other
VI. Taxation
1. Main types of taxes and corresponding tax rates
Tax type Tax basis Tax rate%
VAT Taxable income 9%. 6%. 5%. 3%
City maintenance and construction
Turnover tax payable 7%
tax
Corporate income tax Taxable profits 25%. 16.5%
It shall be levied on the basis of
the value-added value of the real
estate transferred and the Four progressive rates of excess
Land appreciation tax
prescribed tax rate and paid in rate: 30,40,50, 60
advance according to the type of
real estate product
70% of the original value of
Property tax 1.2% . 12%
properties/ rental income
Education surcharge Turnover tax payable 3%
Local education surcharge Turnover tax payable 2%
The disclosure of taxpayers in different corporate income tax rates:
Name of taxpayer Income tax rate
2. Tax preferential treatments
Subsidiaries of the Group, Shenzhen Huazhan Construction Supervision Co., Ltd. and Shantou Special Economic
Zone Xiangshan Real Estate Development Co., Ltd. are applicable to the preferential tax rate of 20% for small and
low-profit enterprises.
3. Other
VII. Notes to the consolidated financial statements
1. Cash at bank and Cash Equivalent
Presented in RMB
Item As at 30 June 2022 As at 1 January 2022
Cash in hand 9,262.03 12,082.00
Deposits with banks 265,621,433.40 316,834,778.45
Other monetary funds 61,284,891.22 247,511,964.18
Total 326,915,586.65 564,358,824.63
97
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Including: Total overseas deposits 6,668,448.15 5,970,125.18
Other notes:
At the end of 30 June 2022, there were CNY5,674,439.78 of restricted funds in the bank deposits, which were
the funds for the construction of public facilities in and around the city of Longgang district.
At the end of 30 June 2022, the balance of other monetary funds is CNY61,284,891.22, including seven-day
notice deposit of CNY58,284,891.22 and fixed deposits of CNY 3,000,000.00.
2. Trading financial assets
Presented in RMB
Item As at 30 June 2022 As at 1 January 2022
As at fair value through profit or
404,148,060.54 514,024,710.91
loss
Including:：
wealth management fund 404,148,060.54 514,024,710.91
Including:：
Total 404,148,060.54 514,024,710.91
Other notes:
3. Derivative financial assets
Presented in RMB
Item As at 30 June 2022 As at 1 January 2022
Other Note:
4. Notes receivable
（1）Types of notes
Presented in RMB
Item As at 30 June 2022 As at 1 January 2022
Commercial acceptance bill 200,000.00 3,530,537.37
Total 200,000.00 3,530,537.37
Presented in RMB
As at 30 June 2022 As at 1 January 2022
Bad debt Bad debt
Book balance Book balance
provision provision
Types Provisi Book Provisi Book
Amoun Percent Amoun on value Amoun Percent Amoun on value
t age t proport t age t proport
ion ion
Bad
debt
provisi 500,00 100.00 300,00 200,00 4,626,3 2,775,8 1,850,5
60.00% 72.35% 60.00%
ons 0.00 % 0.00 0.00 46.44 07.86 38.58
made
on an
98
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
individ
ual
basis
Includi
ng：
Comm
ercial
500,00 100.00 300,00 200,00 4,626,3 2,775,8 1,850,5
accept 60.00% 72.35% 60.00%
0.00 % 0.00 0.00 46.44 07.86 38.58
ance
bill
Bad
debt
provisi
ons
1,768,4 88,420. 1,679,9
made 27.65% 5.00%
19.78 99 98.79
on a
combin
ation
basis
Includi
ng：
Comm
ercial
1,768,4 88,420. 1,679,9
accept 27.65% 5.00%
19.78 99 98.79
ance
bill
500,00 100.00 300,00 200,00 6,394,7 100.00 2,864,2 3,530,5
Total 60.00% 44.79%
0.00 % 0.00 0.00 66.22 % 28.85 37.37
Bad debt provision made on an individual basis:
Presented in RMB
As at 30 June 2022
Item Provision
Book balance Bad debt provision Reason
proportion
Shenzhen Hongteng
Investment recoverability is
500,000.00 200,000.00 60.00%
Management Co., relatively small
Ltd.
Please refer to the way of disclosing other receivables’ bad debt provision to disclose relevant information, if
the group choose to use general model of expected credit losses to accrue bad debts of notes receivable.
□ Applicable √ Not Applicable
（2）Additions, recoveries or reversals of provision for the current period
Additions in current period：
Presented in RMB
The amount of change in current period
As at 1 As at 30 June
Item Recoveries or
January 2022 Provision Written-off Others 2022
reversals
commercial
2,864,228.85 2,564,228.85 200,000.00
acceptance
99
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
bill
Total 2,864,228.85 2,564,228.85 200,000.00
Including: significant recoveries or reversals of bad debt provisions in the current period:
□ Applicable √ Not Applicable
（3）Notes receivable pledged by the Group at the end of the period
Presented in RMB
Types Amount pledged at the end of the period
（4）At the end of the period, the Group's endorsed or discounted notes receivable which have not yet
matured
Presented in RMB
Derecognized Amount at the end Amount that is not derecognized
Types
of the period at the end of the period
（5）Notes receivable transferred to accounts receivable by the Group due to the drawer's non-
performance at the end of the period
Presented in RMB
Amount transferred to accounts receivable at the end
Types
of the period
commercial acceptance bill 4,126,346.44
Total 4,126,346.44
Other Note:
（6）Actual write-off of notes receivable in the current period
Presented in RMB
Item Written-off amount
Including, the significant write-offs of notes receivable are as follows
Presented in RMB
Approval Accounts
procedures receivable arising
Name of the Nature of Written-off Reason for
performed from related
entity accounts amount written-off
party
transactions(Y/N)
Note:
5. Accounts receivable
（1）Classified by bad debt provision method
Presented in RMB
100
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
As at 30 June 2022 As at 1 January 2022
Bad debt Bad debt
Book balance Book balance
provision provision
Types Provisi Book Provisi Book
Amoun Percent Amoun on value Amoun Percent Amoun on value
t age (%) t percent t age (%) t percent
age age
Bad
debt
provisi
ons
36,676, 31,688, 4,988,5 32,550, 29,212, 3,338,0
made 34.75% 86.40% 35.29% 89.75%
783.37 211.23 72.14 436.93 403.37 33.56
on an
individ
ual
basis
Includi
ng:
Bad
debt
provisi
ons
68,874, 1,914,1 66,960, 59,686, 1,975,5 57,710,
made 65.25% 2.78% 64.71% 3.31%
484.65 12.08 372.57 262.33 10.78 751.55
on a
combin
ation
basis
Includi
ng
Receiva
ble
1,064,2 53,211. 1,011,0 1,064,2 53,211. 1,011,0
from 1.01% 5.00% 1.15% 5.00%
20.18 01 09.17 20.18 01 09.17
propert
y sales
Receiva
ble
from
other 67,810, 1,860,9 65,949, 58,622, 1,922,2 56,699,
64.24% 2.74% 63.56% 3.28%
corpor 264.47 01.07 363.40 042.15 99.77 742.38
ate
custom
ers
105,55
100.00 33,602, 71,948, 92,236, 100.00 31,187, 61,048,
Total 1,268.0 31.84% 33.81%
% 323.31 944.71 699.26 % 914.15 785.11
2
Bad debt provisions made on an individual basis
Presented in RMB
As at 30 June 2022
Item Provision
Book balance Bad debt provision Reason
percentage
Shenzhen Hongteng
recoverability is
Investment 12,471,430.35 7,482,858.21 60.00%
relatively small
Management Co.,
101
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Ltd.
Agent for import Could be
and export business 11,574,556.00 11,574,556.00 100.00% uncollectible
payment
Long-term Could be
receivable of 9,649,415.20 9,649,415.20 100.00% uncollectible
property sale
Accounts receivable Could be
from the revoked 2,328,158.40 2,328,158.40 100.00% uncollectible
subsidiary
Accounts receivable Could be
from other 653,223.42 653,223.42 100.00% uncollectible
customers
Total 36,676,783.37 31,688,211.23
Bad debt provision made on a combination basis:
Combined withdrawal item: property sales receivable
Presented in RMB
As at 30 June 2022
Item
Book balance Bad debt provision Provision percentage
Within 1 year 1,064,220.18 53,211.01 5.00%
1 to 2 years
Total 1,064,220.18 53,211.01
Note to the basis for determining the combination:
Bad debt provision made on a combination basis:
Combined withdrawal item: other customers receivales
Presented in RMB
Item As at 30 June 2022
Book balance Bad debt provision Provision percentage
Within 1 year 56,637,006.35 1,302,238.16 2.30%
1 to 2 years 11,173,258.12 558,662.91 5.00%
Total 67,810,264.47 1,860,901.07
Note to the basis for determining the combination:
Please refer to the way of disclosing other receivables’ bad debt provision to disclose relevant information, if
the group choose to use general model of expected credit losses to accrue bad debts of notes receivable.
□ Applicable √ Not Applicable
Disclosure by Aging
Presented in RMB
Aging As at 30 June 2022
Within 1 year（include 1 year） 65,413,817.01
1 to 2 years 16,161,830.26
3to 5 years 23,975,620.75
More than 5 years 23,975,620.75
Total 105,551,268.02
102
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
（2）Additions, recoveries or reversals of provision for the current period
Provision for the current period:
Presented in RMB
Types As at 1 Amount changes in current period As at 30 June
January 2022 Provision Recoveries or Written-off Others 2022
reversals
Bad debt 31,187,914.1 33,602,323.3
-149,819.69 2,564,228.85
provision 5 1
31,187,914.1 33,602,323.3
Total -149,819.69 2,564,228.85
5 1
Including: significant recoveries or reversals of bad debt provisions in the current period are as follows:
Presented in RMB
Name of the entity Recoveries or reversals amount Recovery manner
（3）Actual write-off of accounts receivable in the current period
Presented in RMB
Item Written-off amount
Including, the significant write-offs of accounts receivable are as follows
Presented in RMB
Name of the Nature of Written-off Reason for Approval Accounts
entity accounts amount written-off procedures receivable
receivable performed arising from
related party
transactions(Y/
N)
Note：
（4）The top five units with the ending balance of accounts receivable collected by the debtor
Presented in RMB
% of the total closing
Accounts receivable Bad debt provision
Name of the entity balance of accounts
The ending balance The ending balance
receivable
Shenzhen Hongteng
Investment Management 12,471,430.35 11.82% 7,482,858.21
Co., Ltd.
Wuhan Yutian Xingye
9,465,700.87 8.97% 473,285.04
Land Co., LTD
Jiangsu Huajian
Construction Co., Ltd. 9,097,885.22 8.62% 454,894.26
Shenzhen Branch
Wuhan 2049 Poly Real
Estate Development Co., 7,794,861.35 7.38% 389,743.07
Ltd.
Wuhan Linyun Real
Estate Development Co., 7,608,187.02 7.21% 380,409.35
Ltd.
103
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Total 46,438,064.81 44.00%
（5）Accounts receivable terminated due to the transfer of financial assets
（6）Transfer of accounts receivable and continue to involve the amount of assets and liabilities formed
Note：
6. Accounts receivable financing
Presented in RMB
Item As at 30 June 2022 As at 1 January 2022
The current period of receivables financing changes and changes in fair value.
□ Applicable √ Not applicable
Refer to the way of disclosing provision for other receivables to disclose relevant information, if use general
model of expected credit losses to recognize allowance for impairment of receivable financing .
□ Applicable √ Not applicable
Note：
7. Prepayments
(1) The aging analysis of prepayments is as follows
Presented in RMB
As at 30 June 2022 As at 1 January 2022
Aging
Amount % Amount %
Within 1 year
9,067,399.24 70.15% 4,698,254.37 93.74%
1 to 2 years
3,658,245.36 28.30% 206.95 1.01%
2 to 3 years
206.95 0.00% 6.23%
More than 3 years
200,550.00 1.55% 200,550.00 0.02%
Total
12,926,401.55 4,899,011.32
Reason for significant prepayments aging more than 1 year and not be settled:
（2）The top five units of the ending balance of prepayments
The sum of the top five prepayments collected by prepaid objects at the end of the period is 7,658,241.35
yuan, which accounts for 59.24 % of the total ending balance of prepayments.
104
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
8. Other receivables
Presented in RMB
Item As at 30 June 2022 As at 1 January 2022
Dividends receivable 1,052,192.76 1,052,192.76
Other receivables 47,962,538.86 29,561,815.32
Total 49,014,731.62 30,614,008.08
（1）Interest receivable
1）Interest receivable classification
Presented in RMB
Item As at 30 June 2022 As at 1 January 2022
2）Significant overdue interest
Presented in RMB
Whether impairment
Overdue time
Borrowing unit The ending balance Overdue reason occurs and the basis
(month)
for judgment
Other notes：
3）Bad Debt Provisions
□ Applicable √ Not Applicable
（2）Dividends receivable
1）Dividends receivable classification
Presented in RMB
Items (or invested units) As at 30 June 2022 As at 1 January 2022
Yunnan Kunpeng Air Service Co.,
1,052,192.76 1,052,192.76
LTD
Total 1,052,192.76 1,052,192.76
2）Significant dividends receivable overdue more than one year are as follows:
Presented in RMB
Whether
Items (or invested Reasons for not impairment occurs
As at 30 June 2022 Aging
units) retrieving and the basis for
judgment
Yunnan Kunpeng
1,052,192.76 5 years Delay to issue No
Air Service Co., LTD
Total 1,052,192.76
105
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
3）Bad Debt Provisions
□ Applicable √ Not Applicable
（3）Other receivables
1）Other receivables disclosure by nature
Presented in RMB
Item Book balance as at 30 June 2022 Book balance as at 1 January 2022
Other receivables from employee’s
679,036.60 580,911.83
petty cash
Other receivables from the
627,681.27 627,681.27
collecting and paying on behalf
Other receivables from other
67,161,585.17 48,840,482.91
customers
Other receivables from related
168,705,898.17 168,705,898.17
parties
Total 237,174,201.21 218,754,974.18
2）Bad Debt Provision
Presented in RMB
first stage Second stage Third stage
Bad Debt Provision To 12-month To lifetime Total
To 12-month expected credit loss expected credit loss
expected credit loss (no credit (has occurred credit
impairment) impairment)
Balance as at 1
1,491,716.94 187,701,441.92 189,193,158.86
January 2022
Balance as at 1
January 2022 in
current period
Provision in a
18,503.49 18,503.49
current period
Balance as at 30
1,510,220.43 187,701,441.92 189,211,662.35
June 2022
Changes in the book balance with significant changes in the loss provision for the current period:
□ Applicable √ Not Applicable
Disclosure by aging
Presented in RMB
Aging As at 30 June 2022
Within 1 year (include 1 year) 47,855,956.05
1 to 2 years 905,350.96
2 to 3 years 106,096.34
More than 3 years 188,306,797.86
106
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
3 to 4 years 605,355.94
More than 5 years 187,701,441.92
Total 237,174,201.21
3）Additions, recoveries or reversals of provision for the current period
Presented in RMB
Amount changes in current period
As at 1 January As at 30 June
Types Recoveries or
2022 Additions Written-off Others 2022
reversals
Other
receivables
189,193,158.86 18,503.49 189,211,662.35
bad debt
provision
Total 189,193,158.86 18,503.49 189,211,662.35
Including: significant recoveries or reversals of bad debt provisions in the current period are as follows:
Presented in RMB
Name of the entity Amount of recoveries or reversals Recovery manner
4）Other receivables actually written off in the current period
Presented in RMB
Item Amount of written-off
Including, the important accounts receivable write-off situation is as follows
Presented in RMB
Verification and Whether the
cancellation payment is
Name of the Nature of other Amount of
Reason procedures to be generated by an
entity receivable written-off
performed affiliate
transaction
Note：
5）The top five units of ending balance of other receivables
Presented in RMB
Proportion of
Ending balance total ending Ending balance
Name of the Nature of other
of other Aging balance of of bad debt
entity receivables
receivables other provision
receivables (%)
Canada Great
Wall More than 5
current account 89,035,748.07 37.54% 89,035,748.07
(Vancouver) years
Co., Ltd
Paklid Limited current account 19,319,864.85 More than 5 8.15% 19,319,864.85
107
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
years
Australia current account More than 5
Bekaton years
12,559,290.58 5.30% 12,559,290.58
property
Limited
Guangdong current account More than 5
province years
Huizhou Luofu 10,465,168.81 4.41% 10,465,168.81
Hill Mineral
Water Co.,Ltd
Xi’an Fresh Peak current account More than 5
Property 8,419,205.19 years 3.55% 8,419,205.19
Trading Co., Ltd
Total 139,799,277.50 58.94% 139,799,277.50
6）Government subsidies receivable
Presented in RMB
Estimated time,
Name of the Name of government
The ending balance Aging amount and basis of
organization subsidy item
collection
7）Other receivables terminated due to the transfer of financial assets
8）Amount of assets and liabilities formed by transferring other receivables and continuing to involve them
9. Inventories
Does the Company need to comply with the disclosure requirements of real estate industry?
Yes
（1）Inventory classification
The company complies with the disclosure requirements of "Shenzhen Stock Exchange Industry Information
Disclosure Guidelines No. 3-Listed Companies Engaged in Real Estate Business".
Classified by nature:
Presented in RMB
As at 30 June 2022 As at 1 January 2022
Provision for Provision for
Item impairment The book impairment The book
Book balance Book balance
of inventorie value of inventorie value
s s
Real estate
3,147,212,44 3,147,212,44 3,037,991,96 3,037,991,96
developing
5.46 5.46 9.96 9.96
cost
Real estate
889,915,248. 889,915,248. 994,212,857. 994,212,857.
developed
10 10 29 29
products
Raw
8,458.34 8,458.34 8,458.34 8,458.34
materials
108
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Finished
331,370.65 38,891.91 292,478.74 334,040.04 38,891.91 295,148.13
goods
Project 32,950,760.2 32,950,760.2
2,425,128.90 2,425,128.90
material 3 3
4,070,418,28 4,070,379,39 4,034,972,45 4,034,933,56
Total 38,891.91 38,891.91
2.78 0.87 4.53 2.62
The main items of " Real estate developing cost " and their interest capitalization are shown below:
Presented in RMB
Includ
e:
Less:
Amou
Transf
Cumul nt of
Estima er to Add:
Time Less: As at ative interes
ted As at 1 “Real Increa Source
Startin for Other 30 interes t
Item total Januar estate se in s of
g time compl reduct June t capital
invest y 2022 develo this funds
etion ion 2022 capital ized in
ment ped period
ization the
produ
curren
cts
t
period
ShanT Other
ou
28,291 28,291
Fresh
,908.1 0.00 ,908.1
Peak
1 1
Buildi
ng
18 7 Other
1,520, 993,95 10,282 1,004,
Guang Febru Dece
600,00 0,000. ,823.8 232,82
mingli ary mber
0.00 00 7 3.87
2022 2024
Lin Xin 30 3,000, 2,015, 98,937 2,114, 12,326 Other
89,286
Garde June 000,00 750,06 ,651.6 687,71 ,753.0
.77
n 2023 0.00 1.85 3 3.48 8
4,520, 3,037, 109,22 3,147, 12,326
89,286
Total 600,00 991,96 0,475. 212,44 ,753.0
.77
0.00 9.96 50 5.46 8
The main items of " Real estate developed products" and their interest capitalization are shown below:
Presented in RMB
Include:
Amount of
Cumulative
As at 1 interest
Time for As at 30 interest
Item January Increase Decrease capitalized
completion June 2022 capitalizati
2022 in the
on
current
period
Jinye Island
16 Sep. 39,494,762 39,494,762
Multi-tier
1997 .60 .60
villa
Jinye Island 5,696,007. 5,696,007.
2 Dec 2010
villa No.10 25 25
Jinye Island 20 Aug. 2,333,281. 2,333,281.
villa No.11 2008 42 42
YueJing 18 Nov. 7,305,619. 6,713,323.
592,296.15
dongfang 2014 37 22
109
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Project
HuangPu
140,000.00 140,000.00
XinCun
Beijing
Fresh Peak 304,557.05 304,557.05
Buliding
TianYue 15 Dec. 270,542,05 32,563,206 237,978,84
Bay No.1 2017 4.67 .95 7.72
Shengfang
8 May 58,669,056 58,669,056
CuiLin
2018 .16 .16
Building
Chuanqi 18 Dec 41,834,057 34,130,305 7,703,751.
Donghu 2019 .24 .68 56
TianYue 30 June 567,893,46 37,011,800 530,881,66
Bay No.2 2021 1.53 .41 1.12
994,212,85 104,297,60 889,915,24
Total 0.00
7.29 9.19 8.10
The main items of "instalment on development products”, "leased development products”, “Revolving room”
are shown below:
Presented in RMB
Item As at 1 January 2022 Increase Decrease As at 30 June 2022
2）Provision for inventories and impairment of contract performance costs
Classified by nature：
Presented in RMB
Increase in the reporting Decrease in the reporting
Opening period period Ending
Item Note
balance Reversal or balance
Provision Others Others
Offset
Finished
38,891.91 38,891.91
products
Total 38,891.91 38,891.91
Classified by items:
Presented in RMB
Increase in the reporting Decrease in the reporting
Opening period period Ending
Item Note
balance Reversal or balance
Provision Others Others
Offset
Finished
38,891.91 38,891.91
products
Total 38,891.91 38,891.91
（3）The ending balance of inventory contains the explanation of the capitalized amount of borrowing
expenses:
As at 30 June 2022, the Group's inventory balance contains capitalized borrowing costs at 12,326,753.08 yuan
(As at 31 Dec 2021 is 12,237,466.31 yuan).
110
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
（4）Restriction on Inventories
Disclose restriction on Inventories by projects：
Presented in RMB
Name of project Opening balance Ending balance Reason of restriction
10. Contractual assets
Presented in RMB
Ending balance Opening balance
Item Book Provision for Book Provision for
Book value Book value
balance impairment balance impairment
The Amount and reason of significant changes in book value of contractual assets in current reporting period:
Presented in RMB
Item Changes in amount Reason for change
Refer to the way of disclosing provision for other receivables to disclose relevant information, if use general
model of expected credit losses to recognize allowance for impairment of contractual assets.
□ Applicable √ Not applicable
Provision for impairment of contractual assets in current period:
Presented in RMB
Verification /
Provision in current Reversals in current
Item Written-off in current Reason
period period
period
Note:
11. Assets held for sale
Presented in RMB
Book balance Book value Estimated
Provision for Estimated
Item as at 30 June as at 30 June Fair Value disposal
impairment disposal time
2022 2022 costs
Assets in
held-for-sale
disposal
groups
Including:
Shenzhen
Property
Management
Co., Ltd.
Note:
In consideration of optimizing and adjusting the industrial structure, on December 30, 2021, the Company and
its subsidiary Shenzhen Shenfang Investment Co., Ltd. signed the Equity Acquisition Agreement with Shenzhen
International Trade Property Management Co., Ltd. and transferred the 100% equity of Shenzhen Property
111
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Management Co., Ltd. in total to Shenzhen International Trade Property Management Co., Ltd. with a transfer
price of RMB 196.6767 million. At the end of 2021, Shenzhen Property Management Co., Ltd. has been
confirmed as a disposal group held for sale, and assets held for sale of RMB 78,940,232.10 have been
confirmed.
In the first half of 2022, according to the Equity Acquisition Agreement, the Company has received 90% of the
consideration for the sale of the above-mentioned equity, completed the transfer procedures, and terminated
the recognition of the assets held for sale in its disposal group. The ending book balance of assets held for sale
is 0.
12. Non-current assets due within one year
Presented in RMB
Item As at 30 June 2022 As at 1 January 2022
Significant debt investment/ other debt investment
Presented in RMB
As at 30 June 2022 As at 1 January 2022
Real Real
Debt investment Coupon Maturity Coupon Maturity
Face value interest Face value interest
rate date rate date
rate rate
Note：
13. Other current assets
Presented in RMB
Item As at 30 June 2022 As at 1 January 2022
Contract acquisition costs 634,991.79 0.00
Advance or prepaid income tax 1,069,352.14 3,205,104.33
Prepaid VAT 3,525,374.00 7,643,969.22
Pending deduct vat on purchase 28,110,437.46 53,061,826.30
Land Appreciation Tax 1,604,369.43 2,481,541.71
Business Tax 150,024.32 259,308.30
Others 956,131.59 1,565,137.18
Total 36,050,680.73 68,216,887.04
Note：
14. Debt investment
Presented in RMB
As at 30 June 2022 As at 1 January 2022
Item Impairment Impairment
Book balance The book value Book balance The book value
loss loss
Significant debt investment
Presented in RMB
As at 30 June 2022 As at 1 January 2022
Debt investment Coupon Real Maturity Coupon Real Maturity
Face value Face value
rate interest date rate interest date
112
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
rate rate
Impairment provisions for the current period
Presented in RMB
The first stage The second stage The third stage
Expected credit Expected credit loss
Expected credit losses over the over the entire
Provision Total
losses over the next entire duration (no duration (credit
12 months credit impairment impairment has
occurred) occurred)
Balance as at 1
—— —— —— ——
January 2022
Significant changes in book balance of impairment provisions for the current period
□ Applicable √ Not Applicable
Note：
15. Other debt investment
Presented in RMB
Accumulat
e the loss
provision
Changes in Cumulative
Opening Accrued Ending recognized
Item current fair The cost of fair value Note
balance interest Balance in other
value changes
comprehen
sive
income
Significant other debt investment
Presented in RMB
As at 30 June 2022 As at 1 January 2022
Other debt Real Real
Coupon Maturity Coupon Maturity
investment Face value interest Face value interest
rate date rate date
rate rate
Impairment provisions for the current period
Presented in RMB
The first stage The second stage The third stage
Expected credit losses Expected credit loss
Expected credit
Provision over the entire duration over the entire duration Total
losses over the
(no credit impairment (credit impairment has
next 12 months
occurred) occurred)
Balance as at 1 Jan.
—— —— —— ——
2022
Significant changes in book balance of impairment provisions for the current period
□ Applicable √ Not Applicable
Note：
113
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
16. Long-term receivables
（1）Long-term receivables are disclosed by nature
Presented in RMB
As at 30 June 2022 As at 1 January 2022
Discount
Item Book Bad debt Book Bad debt
Book Value Book Value rate range
balance provision balance provision
Bad Debt Provision
Presented in RMB
The first stage The second stage The third stage
Expected credit losses Expected credit loss
Expected credit
Provision over the entire duration over the entire duration Total
losses over the
(no credit impairment (credit impairment has
next 12 months
occurred) occurred)
Balance as at 1 Jan.
—— —— —— ——
2022
Significant changes in book balance of impairment provisions for the current period
□ Applicable √ Not Applicable
（2）Long-term receivables terminated due to financial asset transfer
（3）Amount of transferring long-term receivables and continuing to involve in the formation of assets and
liabilities
Other notes:
17. Long-term equity investments
Presented in RMB
Movements during the period
Balanc
Invest
Declar e of
ment
ed provisi
in Ending
Opening distrib on for
come Other Provisi balanc
Invest balance Adjust utio n impair
Incre Decr recogn eq uity on f or e
ees (book ment of Other ment
ase ease i sed move impair (book
value) in OCI cash as
under ments m ent value)
divide June
equity
nds or 30
met
profits 2022
ho
1. Joint Venture
Guang
dong
provin
9,969,20 9,969, 9,969,
ce
6.09 206.09 206.09
Huizho
u
Luofu
114
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Hill
Miner
al
Water
Co.,
Ltd
Fengka
i 9,455,46 9,455, 9,455,
Xinhua 5.38 465.38 465.38
Hotel
19,424 19,424
Subtot 19,424,6
,671.4 ,671.4
al 71.47
7 7
2. Associates
Shenz
hen
Rongh
1,349,12 1,349, 1,076,
ua
2.92 122.92 954.64
JiDian
Co.,
ltd
Shenz
hen
Runhu
a
1,445,42 1,445, 1,445,
Autom
5.56 425.56 425.56
obile
tradin
g Co.,
Ltd
Dongyi
Real 30,376 30,376
30,376,0
Estate ,084.8 ,084.8
84.89
Co., 9 9
Ltd
33,170 32,898
Subtot 33,170,6
,633.3 ,465.0
al 33.37
7 9
52,595 52,323
52,595,3
Total ,304.8 ,136.5
04.84
4 6
Note:
18. Investments in other equity instrument
Presented in RMB
Item As at 30 June 2022 As at 1 January 2022
Shantou Small &Medium
Enterprises Financing Guarantee 19,777,460.65 13,831,938.92
Co., Ltd
Yunnan KunPeng Flight service Co.,
0.00 22,490,765.41
Ltd
Total 19,777,460.65 36,322,704.33
Itemized disclosure of investment in non-trading equity instruments for the current period
115
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Presented in RMB
Reasons for
designating
The amount
Dividend fair value
of other
income measuremen
The The comprehensi
recognized t and its Transferring
Item cumulative cumulative ve reserve
for the changes reasons
gains loss transferred
current included in
into retained
period other
earnings
comprehensi
ve income
Shantou
Small
&Medium
11,496,121.7
Enterprises 813,960.00
3
Financing
Guarantee
Co., Ltd
Yunnan
Dispose of
KunPeng 11,449,773.2 11,449,773.2
the
Flight service 6 6
investment
Co., Ltd
Note：
19. Other non-current financial assets
Presented in RMB
Species As at 30 June 2022 As at 1 January 2022
Note：
20. Investment property
(1) Investment properties measured using the cost model
Presented in RMB
Construction in
Item Buildings Land use rights Total
progress
Ⅰ. Cost
1. Balance as at 31
1,042,912,022.39 98,272,942.19 1,141,184,964.58
Dec. 2021
2. Additions during
1,832,873.00 4,767,448.45 6,600,321.45
the year
（1）Purchase 1,832,873.00 1,832,873.00
（2）Transfer from
Inventories\Fixed
assets\
116
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
construction in
progress
（3）Additions
due to business
combinations
（4）Others
(Exchange Rate 4,767,448.45 4,767,448.45
Changes)
3. Decrease during
the year
（1）Disposals
（2）Other
transfers out
4.Balance as at 30
1,044,744,895.39 103,040,390.64 1,147,785,286.03
June 2022
II. Accumulated
depreciation or
amortization
1. Balance as at 31
457,533,453.68 457,533,453.68
Dec. 2021
2. Charge for the
12,725,918.76 12,725,918.76
year
（1）Depreciated
12,725,918.76 12,725,918.76
or amortised
3. Reductions
during the year
（1）Disposals
（2）Other
transfers out
4.As at 30 June
470,259,372.44 470,259,372.44
2022
III. Provision for
impairment
1. Balance as at 31
14,128,544.62 80,657,189.12 94,785,733.74
Dec. 2021
2. Charge for the
3,912,867.40 3,912,867.40
year
(1) Provision
(2) Others
(Exchange Rate 3,912,867.40 3,912,867.40
Changes)
3. Reductions on
disposals
（1）Disposals
（2）Other
transfers out
117
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
4.As at 30 June
14,128,544.62 84,570,056.52 98,698,601.14
2022
IV. Carrying
amounts
1. As at 30 June
560,356,978.33 18,470,334.12 578,827,312.45
2022
2. As at 31 Dec
571,250,024.09 17,615,753.07 588,865,777.16
2021
2）Investment property measured at fair value
□ Applicable √ Inapplicable
The company complies with the disclosure requirements of "Shenzhen Stock Exchange Industry
Information Disclosure Guidelines No. 3-Listed Companies Engaged in Real Estate Business"
Disclosed by projects：
Presented in RMB
Rental Fair
Time for income value as Fair value as Movement Reasons and
building
Project name Location completi in at 31 at 30 June in Fair Index for fair
area
on reportin Dec. 2022 value value change
g period 2021
Does the company have investment real estate that is currently under construction?
□ Yes √ No
Whether the company has new investment real estate measured at fair value in the current period?
□ Yes √ No
（3）Investment properties pending certificates of ownership
Presented in RMB
Item Carrying amount Reason why certificates are pending
Note: The current reduction in the original value of land use right and the impairment provision is caused by
the exchange rate changes during the translation of foreign currency statements.
21. Fixed assets
Presented in RMB
Item As at 30 June 2022 As at 31 Dec. 2021
Fixed assets 22,677,228.99 23,920,424.55
Total 22,677,228.99 23,920,424.55
（1）Fixed assets
Presented in RMB
118
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Plant & buildings Motor vehicles Electronic Total
Item equipment and
others
I．Cost：
1. Balance as at 31
100,117,808.10 8,307,455.41 7,273,579.83 115,698,843.34
Dec. 2021
2.Additions during
123,731.04 123,731.04
the year
(1) Purchases 123,731.04 123,731.04
(2) Transfers from
construction in
progress
(3) Additions due to
business
combinations
3. Decrease during
61,875.44 61,875.44
the year
(1) Disposals or
61,875.44 61,875.44
written-offs
4.As at 30 June
100,117,808.10 8,307,455.41 7,335,435.43 115,760,698.94
2022
II. Accumulated
depreciation
1. Balance as at 31
79,191,129.84 6,864,681.16 5,722,607.79 91,778,418.79
Dec. 2021
2. Charge for the
1,084,373.92 118,404.24 159,348.88 1,362,127.04
year
(1) Provision 1,084,373.92 118,404.24 159,348.88 1,362,127.04
3. Reductions for
57,075.88 57,075.88
the year
(1) Disposal or
57,075.88 57,075.88
written-offs
4. Balance as at
80,275,503.76 6,983,085.40 5,824,880.79 93,083,469.95
30 June 2022
III. Provision for
impairment
1. Balance as at 31
Dec. 2021
2. Charge for the
year
(1) Provision
3. Reductions for
the year
(1) Disposals or
written-offs
4． Balance As at
119
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
30 June 2022
IV. Carrying amount
1. As at 30 June
19,842,304.34 1,324,370.01 1,510,554.64 22,677,228.99
2022
2. As at 31 Dec.
20,926,678.26 1,442,774.25 1,550,972.04 23,920,424.55
2021
（2）Temporarily idle fixed assets
Presented in RMB
Provision for
Accumulated
Item Cost impairment Carrying Amount Note
depreciation
（3）Fixed assets leased out under operating leases
Presented in RMB
Carrying amount at the end of reporting period
Item
（4）Fixed assets pending certificates of ownership
Presented in RMB
Reason why certificates of
Item Carrying amount
ownership are pending
Note
（5）Fixed assets to be disposed of
Presented in RMB
项目 As at 30 June 2022 As at 31 Dec. 2021
Note:
22. Construction in progress
Presented in RMB
Item As at 30 June 2022 As at 31 Dec. 2021
（1）Construction in progress
Presented in RMB
As at 30 June 2022 As at 31 Dec. 2021
Item Carrying Carrying
Book value Provision for Book value Provision for
amount amount
120
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
impairment impairment
（2）Movements of major construction Items in progress
Presented in RMB
Interest
Percent Includin rate for
Other Accum
Balance Transfe Balance age of g: capitali Sources
deducti Item ulated
as at 31 Additio rs to as at 30 actual interest sation of
Item Budget ons for progres capitali
Dec. ns fixed June cost to capitali in funding
the s sed
2021 assets 2022 budget sed in 2022(%
year interest
(%) 2022 )
（3）Provision for impairment of construction in progress
Presented in RMB
Item Provision for current period Reason for provision
Note:
（4）Construction materials
Presented in RMB
As at 30 June 2022 As at 31 Dec. 2021
Item Provision for Carrying Book Provision for Carrying
Book balance
impairment amount balance impairment amount
23. Productive living assets
（1）Measured at cost
□ Applicable √ Not applicable
（2）Measured at fair value
□ Applicable √ Not applicable
24. Oil and gas assets
□ Applicable √ Not applicable
25. Use rights assets
Presented in RMB
Item Plant & buildings Total
121
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Ⅰ. Cost
1. Balance as at 31 Dec. 2021 431,779.61 431,779.61
2. Additions during the year
3. Decrease during the year
4.Balance as at 30 June 2022 431,779.61 431,779.61
II. Accumulated depreciation or
amortization
1. Balance as at 31 Dec. 2021 66,427.64 66,427.64
2. Charge for the year
(1)Depreciated or amortised 66,427.63 66,427.63
3. Reductions during the year
(1)Disposals
4.As at 30 June 2022 132,855.27 132,855.27
III. Provision for impairment
1. Balance as at 31 Dec. 2021
2. Charge for the year
(1) Provision
3. Reductions for the year
(1)Disposals
4.As at 30 June 2022
IV. Carrying amounts
1. As at 30 June 2022 298,924.34 298,924.34
2. As at 31 Dec 2021 365,351.97 365,351.97
Other notes：
26. Intangible assets
（1）Intangible assets
Presented in RMB
Land use
Item Patent right Know-how Software Total
rights
I.Cost
1. Balance as at 31 Dec.
2021
2.Additions during the year
(1) Purchase
(2) Internal
development
(3) Additions due to
business combination
3. Decrease during the year
(1) Disposals
4.As at 30 June 2022
II. Accumulative amortisation
1. Balance as at 31 Dec.
2021
122
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
2. Charge for the year
(1) Provision
3. Reductions for the year
(1) Disposals
4.As at 30 June 2022
III. Provision for impairment
1. Balance as at 31 Dec.
2021
2. Charge for the year
(1) Provision
3. Reductions for the year
(1) Disposals
4.As at 30 June 2022
IV. Carrying amount
1. As at 30 June 2022
2. As at 31 Dec. 2021
The carrying amount of intangible assets of the Group arising from internal development is XX% of the total
carrying amount of intangible assets at the end of the year.
（2）Land use rights pending certificates of ownership
Presented in RMB
Reason why certificates of
Item Carrying amount
ownership are pending
27. Development costs
Presented in RMB
Decreased during the year
Additions during the year
As at 31 As at 30
Item Internal
Dec. 2021 Recognised as Recognised in June 2022
development Others
intangible assets profit or loss
Total
Other note:
28. Goodwill
（1）Book value of goodwill
Presented in RMB
Decreases during
Name of investee or events from As at 31 Additions during the year As at 30
the year
which goodwill arose Dec. 2020 June 2021
Business combination Disposal
Total
123
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
（2）Provision for impairment of goodwill
Presented in RMB
Decreases during
Name of investee or events from As at 31 Additions during the year As at 30
the year
which goodwill arose Dec. 2020 June 2021
Provision Disposal
Total
Information about the asset group or combination of asset groups in which the goodwill resides
The method of determining goodwill impairment and explain the process and key parameter of goodwill
impairment tests:
The impact of goodwill impairment tests:
Other note:
29. Long-term deferred expense
Presented in RMB
As at 1 Jan. Additions Amortisation Others As at 30 June
Item
2022 during the year for the year decreases 2022
Renovation
1,703,967.55 38,771.84 236,790.42 1,505,948.97
Costs
Others 460,995.63 179,091.09 98,923.72 541,163.00
Total 2,164,963.18 217,862.93 335,714.14 2,047,111.97
Other note:
30. Deferred tax assets/Deferred tax liabilities
（1）Deferred tax assets and deferred tax liabilities that are not offset
Presented in RMB
As at 30 June 2022 As at 31 Dec. 2021
Item Deductible or Deductible or
Deferred tax assets Deferred tax assets
taxable temporary taxable temporary
Provisions for
impairment of 11,676,505.43 2,919,126.36 11,676,505.43 2,919,126.36
assets
Unrealised profits
of intra-group 41,759,852.68 10,439,963.17 48,439,321.68 12,109,830.42
transactions
Deductible tax
60,853,662.72 15,213,415.68 60,853,662.72 15,213,415.68
losses
Provision for land
appreciation tax 495,662,113.28 123,915,528.32 537,081,594.36 134,270,398.59
liquidation reserves
Accrued
22,029,322.92 5,507,330.73 22,029,322.92 5,507,330.73
Contractual cost
Total 631,981,457.03 157,995,364.26 680,080,407.11 170,020,101.78
124
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
（2）Deferred tax liabilities without offsetting
Presented in RMB
As at 30 June 2022 As at 31 Dec. 2021
Deductible or Deductible or
Item Deferred tax Deferred tax
taxable temporary taxable temporary
liabilities liabilities
differences differences
Changes in the fair
value of other
6,920,726.92 1,730,181.73 18,858,463.59 4,714,615.90
equity instrument
investments
Changes in fair
value of held-for-
11,828,130.44 2,957,032.61 11,828,130.44 2,957,032.61
trading financial
assets
Interest not due 7,411,964.20 1,852,991.05 7,411,964.20 1,852,991.05
Total 26,160,821.56 6,540,205.39 38,098,558.23 9,524,639.56
（3）Deferred tax assets or deferred tax liabilities disclosed as net amount after offsetting
Presented in RMB
Deferred tax assets Deferred tax assets
Amount of Amount of
or liabilities after or liabilities after
Item offsetting as at 30 offsetting as at 31
offsetting as at 30 offsetting as at 31
June 2022 Dec. 2021
June 2022 Dec. 2021
Deferred tax assets 157,995,364.26 170,020,101.78
Deferred tax liabilities 6,540,205.39 9,524,639.56
（4）Details of unrecognized deferred tax assets
Presented in RMB
Item As at 30 June 2022 As at 31 Dec. 2021
Deductible tax losses 5,122,462.04 10,875,646.42
Bad debt provision 211,607,688.34 211,607,688.34
Provision for impairment of long-
220,084,700.95 220,084,700.95
term equity
Provision for impairment of
98,698,601.14 94,785,733.74
investment real estate
Total 535,513,452.47 537,353,769.45
（5）Expiration of deductible tax losses for unrecognised deferred tax assets
Presented in RMB
Year As at 30 June 2022 As at 31 Dec. 2021 Note
2022 5,753,184.38
2023 4,085,485.24 4,085,485.24
2024 688,456.49 688,456.49
2025 1,629.25 1,629.25
2026 346,891.06 346,891.06
2027
125
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Total 5,122,462.04 10,875,646.42
Other note:
31. Other non-current assets
Presented in RMB
As at 30 June 2022 As at 31 Dec. 2021
Item Book Impairment Book Impairment
Book value Book value
balance loss balance loss
32. Short-term loans
（1）Classification of short-term loans
Presented in RMB
Item As at 30 June 2022 As at 31 Dec. 2021
Pledge loans 56,831,235.17 50,440,116.24
Total 56,831,235.17 50,440,116.24
Note:
The ending balance of the loan consist of the factoring with accounts receivables and discounted commercial
acceptance bill receivable which is not derecognized.
（2）Past due short-term loans
The total balance of past due short-term loans at the end of the year is RMB 0, including significant items are
as follows:
Presented in RMB
Interest rate if
Interest rate Past due period
Lender As at 30 June 2022 overdue
33. Trading financial liabilities
Presented in RMB
Item Ending balance Opening balance
Including:
Including:
34. Derivative financial liabilities
Presented in RMB
Item Ending balance Opening balance
35. Notes payable
Presented in RMB
126
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Kind of Class Ending balance Opening balance
Commercial acceptance bill 235,818,710.20 247,376,403.56
Total 235,818,710.20 247,376,403.56
The total amount of notes payable due and unpaid at the end of the current period is RMB 235,818,710.20.
36. Accounts payable
（1）Accounts payable
Presented in RMB
Item As at 30 June 2022 As at 31 Dec. 2021
Construction 113,866,145.19 139,000,203.58
Others 2,438,205.27 2,447,355.66
Total 116,304,350.46 141,447,559.24
（2）the age of more than 1 year of important accounts payable
Presented in RMB
Reasons for non-payment or non-
Item As at 30 June 2022
carry-forward
Other note：
37. Advances from customers
（1）Advance payments
Presented in RMB
Item As at 30 June 2022 As at 31 Dec. 2021
Payment for goods-import and
4,218,370.69 4,218,370.69
export
Others 2,260,567.86 2,193,056.35
Total 6,478,938.55 6,411,427.04
（2）Important advances received over one year
Presented in RMB
Reasons for non-payment or non-
Item As at 30 June 2022
carry-forward
Other note：
38. Contractual liabilities
Presented in RMB
Item As at 30 June 2022 As at 31 Dec. 2021
Advance in house payment 45,049,115.96 199,909,796.88
Advance in room fee 55,794.14 55,693.20
127
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Total 45,104,910.10 199,965,490.08
Changes in amount and reason for the change in reporting period:
Presented in RMB
Changes in the
Item Reason for change
amount
Advance in
Real estate sales meet the income recognition conditions and carry
house 154,860,680.92
forward income
payment
Total 154,860,680.92 ——
The company needs to comply with the disclosure requirements of "real estate industry" in the "Shenzhen
Stock Exchange Listed Company Self-Regulatory Supervision Guidelines No. 3 - Industry Information
Disclosure"
Receipt information of the top five projects in the pre-sale amount:
Presented in RMB
Estimated
As at 31 Dec. As at 30 June
Serial number Item completion Pre-sale ratio
2021 2022
time
39. Payroll payable
（1）Employee benefits payable
Presented in RMB
Accrued during the Decreased during
Item As at 31 Dec 2021 As at 30 June 2022
year the year
Short-term
43,791,988.37 41,196,346.88 37,977,046.41 47,011,288.84
employee benefits
Post-employment
benefits - defined 134,723.41 5,016,567.01 5,088,567.01 62,723.41
contribution plans
Dismissal benefits 40,767.00 40,767.00
Total 43,926,711.78 46,253,680.89 43,106,380.42 47,074,012.25
（2）Short-term employee benefits
Presented in RMB
Accrued during the Decreased during
Item As at 31 Dec 2021 As at 30 June 2022
year the year
1.Salaries, bonus,
43,636,961.65 34,700,963.17 31,439,529.29 46,898,395.53
allowances
2.Staff welfare 35,800.00 1,374,023.67 1,409,823.67
3.Social insurances 1,833,773.17 1,833,773.17
Including:
1,727,152.37 1,727,152.37
Medical insurance
Work-related
21,000.23 21,000.23
injury insurance
128
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Maternity
85,620.57 85,620.57
insurance
4. Housing Fund 31,040.32 2,874,531.11 2,874,531.11 31,040.32
5. Labor union fees,
staff and workers’ 88,186.40 413,055.76 419,389.17 81,852.99
education fee
Total 43,791,988.37 41,196,346.88 37,977,046.41 47,011,288.84
（3）Post-employment benefits - defined contribution plans
Presented in RMB
Accrued during the Decreased during
Item As at 31 Dec 2021 As at 30 June 2022
year the year
Basic pension
72,000.00 3,195,002.46 3,267,002.46
insurance
Unemployment
37,382.55 37,382.55
insurance
Annuity 62,723.41 1,784,182.00 1,784,182.00 62,723.41
Total 134,723.41 5,016,567.01 5,088,567.01 62,723.41
Note：
40.Tax payable
Presented in RMB
Item As at 30 June 2022 As at 31 Dec 2021
Value-added tax 3,217,792.71 2,364,703.76
Corporate income tax 156,224,499.29 55,260,539.21
Individual income tax 864,126.83 741,740.25
City maintenance and construction
447,699.69 243,387.84
tax
Land appreciation tax 139,983,067.54 541,127,363.69
Property tax 4,958,754.25 262,015.56
Education surcharge 241,467.45 105,021.26
local education surcharge 148,652.48 56,806.29
Others 510,169.96 379,294.62
Total 306,596,230.20 600,540,872.48
Note：
41. Other payables
Presented in RMB
Item As at 30 June 2022 As at 31 Dec 2021
Interest payables 16,535,277.94 16,535,277.94
Dividends payable 89,026,080.00
Other payables 542,210,820.18 564,842,137.70
Total 647,772,178.12 581,377,415.64
129
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
（1）Interest payable
Presented in RMB
Item As at 30 June 2022 As at 31 Dec 2021
Non-financial institution borrowing
interest (interest payable to parent 16,535,277.94 16,535,277.94
company)
Total 16,535,277.94 16,535,277.94
Significant overdue interest outstanding:
Presented in RMB
Debtor Overdue amount Overdue reason
Shenzhen Investment Holdings
16,535,277.94 Defer payment
Co., Ltd.
Total 16,535,277.94
Note:
The loan principal was paid in full on 22 Dec. 2016.
（2）Dividends payable
Presented in RMB
Item As at 30 June 2022 As at 31 Dec 2021
Common stock dividend 89,026,080.00
Total 89,026,080.00
Reason for significant dividends not paid in 1 year:
The 2021 annual equity distribution plan has been reviewed and approved at the 2021 Annual General
Meeting of Shareholders held on May 17, 2022, and a total of RMB 89,026,080.00 of ordinary stock dividends
are to be distributed. As of the end of the reporting period, the above cash dividends have not been
distributed. The equity registration date of this equity distribution A shares is: July 4,2022, and the ex-rights
and ex-dividend date is: July 5,2022. The last trading day of B shares for this equity distribution is: July 4, 2022,
the ex-rights and ex-dividend date is: July 5, 2022, and the share registration date is: July 7, 2022.
（3）Other payables
1）Other payables (by nature)
Presented in RMB
Item As at 30 June 2022 As at 31 Dec 2021
Accrued land appreciation tax 5,898,328.06 36,447,111.94
Current account to Related parties 236,183,176.92 215,460,862.07
Current account to Non-Related
180,642,168.00 161,537,615.36
parties
Deposits 47,879,349.19 48,106,373.19
Others 71,607,798.01 103,290,175.14
Total 542,210,820.18 564,842,137.70
2）significant other payables aging over 1 year
Presented in RMB
130
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Item As at 30 June 2022 Reason for no repayment
42. Liabilities held for sale
Presented in RMB
Item As at 30 June 2022 As at 31 Dec 2021
Liabilities in disposal groups held for sale
Including: Shenzhen Property Management
65,752,452.06
Co., Ltd.
Total 65,752,452.06
Note:
In order to optimize and adjust the industrial structure, on December 30, 2021, The Company and its
subsidiary Shenzhen Shenfang Investment Co., Ltd. signed the Equity Acquisition Agreement with Shenzhen
International Trade Property Management Co., Ltd., and transferred the 100% equity of Shenzhen
International Property Management Co., Ltd. in total to Shenzhen International Trade Property Management
Co., Ltd. with a transfer price of RMB 196.6767 million. In the first half of 2022, according to the Equity
Acquisition Agreement, the Company has received 90% of the consideration for the sale of the above-
mentioned equity, completed the transfer procedures, and derecognized the relevant held-for-sale liabilities in
its disposal group.
43. Non-current liabilities due within one year
Presented in RMB
Item As at 30 June 2022 As at 31 Dec 2021
Lease liabilities due within one
103,779.30 83,023.44
year
Total 103,779.30 83,023.44
Note:
44. Other current liabilities
Presented in RMB
Item As at 30 June 2022 As at 31 Dec 2021
Others 2,352,351.37 8,196,849.13
Total 2,352,351.37 8,196,849.13
Movement in Short-term bonds payable：
Presented in RMB
Interest
Amortiza
Name of The bon As at 31 The is The As at 30
Face Release tion of
the d deadli issuance Dec current accrued current June
value date excess
bond ne 2021 issue at face pay 2022
discount
value
Note:
131
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
45. Long-term loans
（1）Long-term loans classification
Presented in RMB
Item As at 30 June 2022 As at 31 Dec 2021
Note:
Additional notes, including interest rate ranges:
46. Debentures payable
（1）Debentures payable
Presented in RMB
Item As at 30 June 2022 As at 31 Dec 2021
（2）Changes in increase or decrease of bonds payable (excluding preferred stock, perpetual debt and
other financial instruments classified as financial liabilities)
Presented in RMB
Interest
Amortiza
is
Name of The bon The tion of The As at 30
Face Release As at 31 accrue
the d deadli issuance current excess current June
value date Dec. 20 d at
bond ne issue discou pay 2021
face
nt
value
Total -- -- --
（3）Convertible corporate bonds(Convertible company bonds conversion conditions, conversion time)
（4）Other financial instruments classified as financial liabilities
Basic information on preferred stock, perpetual debt and other financial instruments outstanding at the end of
the period:
Statement of changes in preferred shares, perpetual bonds and other financial instruments outstanding at the
end of the period:
Presented in RMB
An Increase in current The reduced in current
2021.12.31 2022.6.30
outstandin period period
g financial The number The book The number The book The number The book The number The book
instrument of value of value of value of value
Explanation of the basis for classifying other financial instruments as financial liabilities:
other note:
47. Lease liabilities
Presented in RMB
132
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Item As at 30 June 2022 As at 31 Dec 2021
Plant & buildings 90,440.36 125,920.77
Total 90,440.36 125,920.77
other note:
48. Long-term payables
Presented in RMB
Item As at 30 June 2022 As at 31 Dec 2021
（1）Long-term payables (shown by nature of payments)
Presented in RMB
Item As at 30 June 2022 As at 31 Dec 2021
other note:
（2）Special payables
Presented in RMB
Increase in As at 30 June Reasons for the
Item As at 31 Dec 2021 The reduced
current 2022 formation
other note:
49. Long-term employee benefits payable
（1）Long-term employee benefits payable
Presented in RMB
Item As at 30 June 2022 As at 31 Dec 2021
（2）Set the changes of benefit plan
Set the present value of the benefit plan obligation:
Presented in RMB
Item This amount The amount of the previous period
Plan assets
Presented in RMB
Item This amount The amount of the previous period
Defined benefit plan net liabilities (net assets) :
Presented in RMB
133
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Item This amount The amount of the previous period
The content, causes, characteristics and related risks of the defined benefit plan and the influence of the
benefit plan on the amount, time and uncertainty of the Group's future cash flow.
Actuarial hypothesis and Sensitivity analysis of setting benefit plan:
Other note:
50. Provisions
Presented in RMB
Item As at 30 June 2022 As at 31 Dec 2021 Causes
Other note:
51. Deferred income
Presented in RMB
Additions during Reductions duri Reason for defer
As at 30 June
Item As at 31 Dec 2021 the year ng the year ral
2022
details of deferred income – government grant:
Presented in RMB
The
Amount amount of
Amount
booked the current
New booked
into non- period Relating to
As at 31 subsidy into other other As at 30
species operating carried assets/earn
Dec 2021 amount of income for change June 2022
income for forward to ings
this period the current
the current reduce
period
period related
costs
52. Other non-current liabilities
Presented in RMB
Item As at 30 June 2022 As at 31 Dec 2021
53. Share capital
Presented in RMB
Increase or decrease of current period (+, -)
Conversion
As at 31 Dec New As at 30 June
Stock from
2021 shar Others Subtotal 2022
dividand reserve to
es
shares
The total
1,011,660,000.00 1,011,660,000.00
number of
134
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
shares
Other note:
54. Other equity instruments
（1）Basic information on preferred stock, perpetual debt and other financial instruments outstanding at the
end of the period:
（2）movement on preferred stock, perpetual debt and other financial instruments outstanding at the end of
the period:
Presented in RMB
issued As at 31 Dec 2021 Increase in The reduced As at 30 June 2022
Financial
Book Book Book Book
instrume Numbers Numbers Numbers Numbers
value value value value
nts
the change of the increase or decrease of other equity instruments in the current period, the reasons for the
change, and the relevant accounting treatment basis.
55. Capital reserves
Presented in RMB
Increase in current The reduced in
Item As at 31 Dec 2021 As at 30 June 2022
period current period
Share premium 557,433,036.93 557,433,036.93
Other capital
420,811,873.18 420,811,873.18
reserves
Total 978,244,910.11 978,244,910.11
Reason for movements in capital reserves:
56. Inventory stocks
Presente
Increase in current The reduced in
Item As at 31 Dec 2021 As at 30 June 2022
period current period
Reason for movements in capital reserves:
57. Other comprehensive income
Presented in RMB
Current amount
The Less: Less: Attributa
Attributa
current included included Less: ble to As at 30
As at 31 ble to the
Item income in other in other Income minority June
Dec 2021 parent
tax compreh compreh tax sharehold 2022
company
before ensive ensive expense ers after
after tax
the income in income in tax
135
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
amount the the
previous previous
period period
and and
transferre transferre
d to d to
profit or retained
loss in earnings
the in the
current current
period period
I. Other
compreh
ensive
income
that -
14,143,84 5,175,152 11,449,77 7,869,227
cannot be 6,274,620
7.69 .79 3.26 .22
reclassifie .47
d into
profits
and
losses
Changes
in the fair
value of
other -
14,143,84 5,175,152 11,449,77 7,869,227
equity 6,274,620
7.69 .79 3.26 .22
instrume .47
nt
investme
nts
II.Other
compreh
ensive
income - - -
21,945,11 19,126,58
which is 2,818,535 2,818,535 1,207,943
6.26 1.18
reclassifie .08 .08 .61
d into
profit and
loss
Translatio
n
differenc
es arising
from - - -
21,945,11 19,126,58
translatio 2,818,535 2,818,535 1,207,943
6.26 1.18
n of .08 .08 .61
foreign
currency
financial
statemen
ts
Total 36,088,96 2,356,617 11,449,77 - - 26,995,80
136
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
3.95 .71 3.26 9,093,155 1,207,943 8.40
.55 .61
Other notes, including the adjustment of the effective portion of the cash flow hedging gain or loss to the
initially recognised amount of the hedged item:
58. Specific reserve
Presented in RMB
Reductions during the
Item As at 31 Dec 2021 Additions during the year As at 30 June 2022
year
Reason for changes in specific reserve in current period:
59. Surplus reserve
Presented in RMB
Additions during the Reductions during the
Item As at 31 Dec 2021 As at 30 June 2022
year year
Statutory
241,144,854.93 241,144,854.93
surplus reserve
Total 241,144,854.93 241,144,854.93
Note:
60. Retained earnings
Presented in RMB
Item Year ended 30 June 2022 Year ended 30 June 2021
Before adjustment: Retained
earnings at the end of the previous 1,671,121,562.98 1,560,720,254.31
period
After adjustment: Retained
earnings at the beginning of the 1,671,121,562.98 1,560,720,254.31
reporting period
Plus:Net profits for the year
attributable to shareholders of the 145,128,330.14 132,447,122.14
Group
Dividends payable to ordinary
89,026,080.00 88,014,420.00
shares
Plus: Disposal of other equity
11,449,773.26
instrument investments
Retained earnings at the end of
1,738,673,586.38 1,605,152,956.45
the reporting period
Adjustments on beginning retained earnings are as follows:
1). Retrospective adjustments of RMB 0.00 made on beginning retained earnings in accordance with CAS and
related new regulations.
2). RMB 0.00 on beginning retained earnings due to changes in accounting policies.
3). RMB 0.00 on beginning retained earnings due to corrections of significant accounting errors.
4). RMB 0.00 on beginning retained earnings due to changes in consolidation scope resulting from business
combinations involving entities under common control.
5). RMB 0.00 on beginning retained earnings due to other adjustments.
137
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
61. Operation Income and Costs
Presented in RMB
Year ended 30 June 2022 Year ended 30 June 2021
Item
Income costs Income costs
Principal activities 364,450,882.21 238,944,330.95 689,047,393.48 330,844,214.47
Other operating
1,733,616.69 940,941.77 5,550,824.99 1,131,464.08
activities
Total 366,184,498.90 239,885,272.72 694,598,218.47 331,975,678.55
Income related information:
Presented in RMB
Contract type Segment 1 Segment 2 Total
Product Types
including：
By business area
including：
Market or customer
type
including：
Type of contract
including：
Sort by time of
goods transfer
including：
Sort by contract
term
including：
By sales channel
including：
Total
Information related to performance obligations:
There are four criteria need to be satisfied when the group recognizing the revenue from property sales: (1)
the sale contract has been signed and filed with the land department; (2) the property development is
completed and pass the acceptance; (3) For Lump-sum payment, revenue is recognized by the group when the
consideration is fully received. For instalment payment, revenue is recognized when the first installment has
been received and the bank mortgage approval procedures have been completed. (4) completed the
procedures for entering the partnership in accordance with the requirements stipulated in sale contract.
Information related to the transaction price allocated to the remaining performance obligations:
At the end of the reporting period, the amount of revenue corresponding to the performance obligations that
have been signed but not yet performed or not yet completed is RMB 465,523,537.18 yuan, Among them,
RMB 184,756,994.12 yuan is expected to be recognized as revenue in 2022, RMB 167,384,668.36 is expected
138
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
to be recognized as revenue in the year 2023, and RMB 79,140,635.64 yuan is expected to be recognized as
revenue in the year 2024 and subsequent years.
Note: The company complies with the disclosure requirements of "Shenzhen Stock Exchange Industry
Information Disclosure Guidelines No. 3-Listed Companies Engaged in Real Estate Business"
Information of the top five projects that the revenue recognized during the reporting period:
Presented in RMB
No. Project Income amount
1 ChuanQi DongHu Building 146,364,854.28
2 TianYue Bay No.2 42,965,973.25
3 TianYue Bay No.1 38,220,407.83
4 YueJing dongfang Project 858,036.19
5 Shengfang CuiLin Building 0
62. Taxes and surcharges
Presented in RMB
Item Current amount Amount of previous period
Urban maintenance and
1,170,922.86 2,116,459.71
construction tax
Education surcharge 502,679.96 939,297.22
Property tax 4,650,644.11 4,661,338.71
Land use tax 322,273.95 53,795.62
Vehicle and vessel usage tax 2,040.00 6,030.00
Stamp duty 229,657.72 380,892.76
Land appreciation tax 49,721,941.06 138,238,943.94
Local education surcharge 337,561.61 569,112.63
Embankment protection fees 43,860.73 393,247.80
Total 56,981,582.00 147,359,118.39
Note:
63. Selling and distribution expense
Presented in RMB
Item Current amount Amount of previous period
Employee benefits 2,722,521.43 1,989,941.91
Advertising expenses 1,366,337.04 1,917,769.32
Entertainment expenses 246,246.42 250,432.76
commissions 3,940,062.31 9,360,189.39
Others 2,450,864.13 3,297,266.68
Total 10,726,031.33 16,815,600.06
Note:
64. General and administrative expenses
Presented in RMB
Item Current amount Amount of previous period
139
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Employee benefits 25,452,857.55 30,479,393.18
Depreciation 1,296,844.73 1,394,723.83
Entertainment expenses 1,181,431.41 1,342,134.54
Professional fee 932,733.24 980,491.44
Travel expense 21,150.06 33,943.63
Office expenses 826,098.42 998,969.38
Maintenance expenses 343,507.92 395,206.71
Utilities 164,773.58 278,307.83
Amortization 194,229.28 227,695.45
Others 2,599,674.33 4,168,718.23
Total 33,013,300.52 40,299,584.22
Note:
65. Research and development expense
Presented in RMB
Item Current amount Amount of previous period
Note:
66. Financial expense
Presented in RMB
Item Current amount Amount of previous period
Interest expense 89,286.77
Less: Interest income 2,903,815.84 16,398,025.57
Less: capitalized interest 89,286.77
Exchange losses/-gains -811,005.72 -201,900.59
Less: Exchange losses and gains
capitalized
Others 113,267.24 185,438.57
Total -3,601,554.32 -16,414,487.59
Note:
67. Other Income
Presented in RMB
Item (Source of other income) Current amount Amount of previous period
VAT relief 236,488.67 633,733.52
Training allowance 33,625.00 0.00
Public health subsidy 0.00 10,000.00
Employment Support Subsidy 10,000.00 0.00
Stable Job Subsidy 123,118.76 0.00
Total 403,232.43 643,733.52
140
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
68. Investment Income
Presented in RMB
Item Current amount Amount of previous period
Disposal of held-for-trading
159,619.01
financial assets
Dividend income from other equity
instrument investments during the 813,960.00
holding period
Debt Restructuring Proceeds 2,489,520.46
Disposal of subsidiaries 163,352,077.77
Total 166,815,177.24
Note:
69. Net exposure hedging income
Presented in RMB
Item Current amount Amount of previous period
70. Income from changes in fair value
Presented in RMB
The source of the fair value change Amount of previous
Current amount
income period
Trading financial assets 4,963,730.62 2,329,484.00
Total 4,963,730.62 2,329,484.00
Note:
The group purchased monetary fund at 13 billion yuan in early June 2021 and one month income is
4,963,730.62 yuan.
71. Credit impairment loss
Presented in RMB
Item Current amount Amount of previous period
Bad debt losses on other
-18,503.49 1,142,580.28
receivables
Reversal of impairment of
149,819.69
accounts receivable
Total 131,316.20 1,142,580.28
Other note:
72. Impairment loss of assets
Presented in RMB
Item Current amount Amount of previous period
141
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Other note:
73. Income from asset disposal
Presented in RMB
Source of asset disposal Current amount Amount of previous period
74. Non-operating income
Presented in RMB
Amount booked into
Amount of previous
Item Current amount current non-recurring
period
profits and losses
Penalty/Default Income 550,000.00 1,352,709.50 550,000.00
Others 2,207.24 18,048.38 2,207.24
Total 552,207.24 1,370,757.88 552,207.24
Government subsidy counted to the current profit and loss:
Presented in RMB
Does the
subsidy Amount Relating
Whether
Reason Subsidy affect the Current of to assets
Item Issuer special
for issue nature profit and amount previous or
subsidy
loss of period earnings
the year
Other note:
75. Non-operating expenses
Presented in RMB
Amount counted to the
Amount of previous
Item Current amount current non-operating
period
gain and loss
Non-monetary asset
1,892.06 1,892.06
exchange losses
Donations provided 43,357.00 43,357.00
Others 50.00 25,246.47 50.00
Total 45,299.06 25,246.47 45,299.06
Note:
76. Income to expense
（1） Details of income tax expenses
Presented in RMB
Item Current amount Amount of previous period
Current tax expense for the year 59,036,968.69 47,841,099.11
Total 59,036,968.69 47,841,099.11
142
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
（2）Reconciliation between income tax expenses and accounting profit is as follows:
Presented in RMB
Item Current amount
Profits/losses before tax 201,997,231.32
Expected income tax expenses at applicable tax rate 50,499,307.83
Effect of non-deductible costs, expenses and losses 8,537,660.90
Income tax expenses 59,036,968.69
Note:
77. Other comprehensive income
Refer to Note VII. 57 for details.
78. Cash Flow Statement
（1） Proceeds from operating activities
Presented in RMB
Item Current amount Amount of previous period
Interest income 2,805,382.05 16,145,175.19
Deposits and security deposits 244,977.70 4,840,752.27
Maintenance Fund 46,833.81 48,921.12
Collecting fee for certifications on
680,720.00 196,503.48
behalf
Others 70,573,645.41 226,919,277.33
Total 74,351,558.97 248,150,629.39
Note:
（2） Payment for other operating activities
Presented in RMB
Item Current amount Amount of previous period
Payment for general and
3,613,201.28 5,877,859.14
administrative expenses
Payment for selling and
2,931,332.85 12,305,839.37
distribution expenses
Deposits and security deposits 472,001.70 3,809,037.95
Paying fee for certifications on
17,696.81 46,643.34
behalf
Others 181,834,327.89 324,877,972.54
Total 188,868,560.53 346,917,352.34
Note:
143
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
（3） Proceeds from other investing activities
Presented in RMB
Item Current amount Amount of previous period
Cash recovered from Monetary
115,000,000.00
Fund
Total 115,000,000.00
Note:
（4） Payment for other investing activities
Presented in RMB
Item Current amount Amount of previous period
Purchasing monetary fund 1,300,000,000.00
Total 1,300,000,000.00
Note:
（5） Proceeds from other financing activities
Presented in RMB
Item Current amount Amount of previous period
Borrowing from minority
331,178,702.21
shareholders
Total 331,178,702.21
Note:
（6） Payment for other financing activitie
79. Supplementary information of the cash flow statement
（1） supplementary information of the cash flow statement
Presented in RMB
Supplementary information Current amount Amount of previous period
1. Adjust net profit to cash flow
from operating activities:
Net profit 142,960,262.63 132,182,934.94
Add: Provisions for impairment
of assets
credit impairment loss 131,316.20 1,142,580.28
Depreciation of Fixed Assets,
Depreciation of Investment Real
Estate,
1,362,127.04 1,894,530.05
Depreciation of Oil and Gas Assets,
Depreciation of Productive
Biological Assets
Depreciation of investment 12,725,918.76 11,663,350.76
144
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
property
Depreciation of Right-of-use
66,427.63
Assets
Amortization of intangible
assets
Amortization of long-term
183,931.86 59,919.67
deffered expenses
Loss on disposal of fixed assets,
intangible assets and other long-
-10,871.50
term assets (marked with "-" for
gains)
Loss on the scrapping of fixed
assets (marked with "-" for 1,892.06 1,598.00
income)
Loss from changes in fair value
-4,963,730.62 -2,329,484.00
(marked with "-" for earnings)
Financial expenses (revenue
-811,005.72 -2,274,549.67
marked with "-")
Loss on investment (marked
-166,815,177.24
with "-" for income)
Deferred tax assets decreased
12,024,737.52 8,457,756.18
(marked with "-" for increase)
Deferred tax liability increased
-2,984,434.17
(marked with "-" for decrease)
Decrease in stock (marked with
-35,445,828.25 -799,115,376.98
"-" for increase)
Decrease of operating
receivable items (marked with "-" -53,847,916.31 200,437,421.26
for increase)
Increase in operational payable
items (marked with "-" for -452,703,664.73 162,251,243.69
decrease)
Other 98,195.86
Net cash flow from operating
-548,115,143.34 -285,540,751.46
activities
2. Major investment and financing
activities that do not involve cash
receipts and expenditures:
Debt to capital
A convertible corporate bond
maturing within one year
Leasing of fixed assets through
financing
3. Net changes in cash and cash
equivalents:
Ending balance of cash 319,956,294.72 876,192,880.75
Minus: Opening balance of cash 612,293,635.15 2,669,103,926.82
Plus: Ending balance of cash
equivalents
145
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Minus: Beginning balance of
cash equivalents
Net increase in cash and cash
-292,337,340.43 -1,792,911,046.07
equivalents
（2） The net cash of the subsidiary paid in the current period
（3） Net cash received for disposal of subsidiaries during the current period
Presented in RMB
Amount
Cash and cash equivalents received from disposal of
177,009,030.00
subsidiaries during current period
Including：
Minus: Cash and cash equivalents held by the
55,358,474.26
company on the date of loss of control
Including：
Including：
Net cash received from disposal of subsidiaries 121,650,555.74
Note：
（4） Composition of cash and cash equivalents
Presented in RMB
Item Ending balance Opening balance
Cash at bank and on hand 319,956,294.72 612,293,635.15
Including:Cash on hand 9,262.03 12,082.00
Bank deposits available on demand 262,947,032.69 372,181,553.15
Other monetary funds available on demand 57,000,000.00 240,100,000.00
Cash and cash equivalents at the end of the year 319,956,294.72 612,293,635.15
Note：Bank deposits available on demand at the beginning of the year include monetary funds of RMB
64,521,214.48 classified as assets held for sale.
80. Notes for items in the statement of changes in shareholders' equity
81. Assets whose ownership or use rights are restricted
Presented in RMB
Item Ending book value Limited reason
Shenzhen Longgang District Urban
Renewal Project and Surrounding
Cash at bank and on hand 5,674,439.78
Public Facilities Project-
Construction Funds
Land mortgage of project
Inventories 965,000,000.00
development loan
146
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Accounts receivable 56,831,235.17 Short-term loan pledge
Total 1,027,505,674.95
Note：
82. Foreign currency monetary items
（1） Foreign currency monetary items
Presented in RMB
Ending Foreign
Currency Balance converted into
Item Discount rate
RMB at the end
Balance
Monetary fund
Including:US dollar 1,136.01 6.6850 7,594.23
The euro
Hong Kong dollars 6,667,312.14 0.8517 5,678,283.05
Accounts receivable
Including:US dollar
The euro
Hong Kong dollars 4,905,150.10 0.8517 4,177,520.13
Long-term borrowing
Including:US dollar
The euro
Hong Kong dollars
Other receivables
Including:US dollar
Hong Kong dollars 20,165,086.70 0.8517 17,173,797.72
Other payables
Including:US dollar 655,299.33 6.6850 4,380,677.84
Hong Kong dollars
Note：The company’s important overseas business entities are Great Wall Real Estate Co., Ltd. and Xinfeng
Enterprise Co., Ltd. Since Great Wall Real Estate Co., Ltd. is mainly operating in the United States, it chooses
the US dollar as the functional currency; Xinfeng Enterprise Co., Ltd. is an investment company, the main
business activities of its investment entities are all in mainland China, and the RMB is used as the standard
currency for bookkeeping, so it chooses RMB as the standard currency for bookkeeping.
（2） Note to overseas operating entities, including important overseas operating entities, which should be
disclosed about its principal business place, function currency for bookkeeping and basis for the choice. In
case of any change in function currency, the cause should be disclosed.
□ Applicable √ Not Applicable
83. Hedging
The qualitative and quantitative information of the hedge item, the related hedge instrument and the hedged
risk shall be disclosed according to the hedge Types.
147
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
84. Government subsidies
（1） Basic information of government subsidies
（2） Refunding of the government subsidies
□ Applicable √ Not Applicable
85. Other
VIII. Change of consolidation scope
1. Business combinations involving enterprises not under common control
（1） Business combinations involving enterprises not under common control occurred during the year
（2） Acquisition cost and goodwill
（3） Identifiable assets and liabilities of the acquiree at the acquisition date
（4） Gain or loss from remeasurement of equity interests held prior to acquisition date to fair value
Whether there are multiple transactions to achieve the business merger step by step and gain control during
the reporting period
□ Yes √ No
（5） If it is impossible to reasonably determine the merger consideration or the fair value of the assets and
liabilities recognized by the purchaser on the purchase date or at the end of the current period, the Group
shall disclose the fact and reasons.
（6） Other Note
148
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
2. Business combinations involving enterprises under common control
（1） Business combinations involving enterprises under common control during the period
（2） Combination cost
（3） Book value of merged party’s assets and liabilities in combination date
3. Reverse buying
4. Disposal of subsidiaries
Whether subsidiaries reduced due to single disposal until loss of control
√ Yes □No
Presented in RMB
The
differen
ce
betwee
Amoun
n the
Meth t of
disposa
od other
l price
Book Fair and compre
and the Prop
valu valu main hensive
share ortio
e of e of Gain or assum income
of the n of
Basis rem rem loss ptions related
subsidi rema
Equit for ainin ainin from of fair to the
Equit ary's ining
y Poin the g g remeas value original
Name y net equit
Equity dispo t of point equi equi uremen of subsidi
of the dispo assets y at
disposa sl loss of ty on ty at t of remai ary's
Subsid sal at the the
l price prop cont loss the the remaini ning equity
iary meth consoli date
ortio rol of date date ng equity invest
od dated of
n contr of of equity on ment
financia loss
ol loss loss at fair the transfe
l of
of of value date rred
statem contr
cont cont of loss into
ent ol
rol rol of invest
corresp
contr ment
onding
ol profit
to the
or loss
disposa
l
investm
ent
Comp
lete
Shenz
the
hen
Trans Febr Indus
City
196,67 fer uary trial 163,35
Proper 100.
6,700.0 agre 11, and 2,077.7
ty 00%
0 eme 202 com 7
Mana
nt 2 merci
gemen
al
t Ltd.
regist
ratio
149
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
n of
chan
ges
Note：As of the end of the reporting period, the audit of the operating results of the disposed subsidiary
related to the above equity transfer during the transition period has not been completed, but it is not
expected to have a significant impact on the investment income generated by the disposal of the subsidiary.
Whether exist multiple transactions to dispose of the equity step by step to the loss of control and the
reduction of the subsidiary
□ Yes √ No
5. Other reason for change of consolidation scope
6. Other
IX. Interest in other entities
1. Interests in subsidiaries
（1） Composition of the Group
Business Shareholding %
Principal Acquisition
Name of the Registration
place of method
Subsidiary place nature Direct Indirect
business
Shenzhen Shenzhen Real estate Acquiring
Shenzhen City SPG
development through
Long Gang 95.00% 5.00%
establishment or
Development Ltd.
investment
Acquiring
American Great Wall Real estate through
U.S. U.S. 70.00%
Co., Ltd development establishment or
investment
Acquiring
Shenzhen Petrel Hotel through
Shenzhen Shenzhen Hotel Services 68.10% 31.90%
Co. Ltd. establishment or
investment
Shenzhen Zhen Tung Installation Acquiring
Engineering Ltd. and through
Shenzhen Shenzhen 73.00% 27.00%
maintenance establishment or
investment
Acquiring
Shenzhen City We
through
Gen Construction Shenzhen Shenzhen Supervision 75.00% 25.00%
establishment or
Management Ltd.
investment
Shenzhen Lain Hua Shenzhen Shenzhen Mechanical & 95.00% 5.00% Acquiring
150
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Industry and Trading Electrical through
Co., Ltd. device establishment or
installation investment
Acquiring
Hong Hong Investment
Fresh Peak Zhiye Co., through
and 100.00%
Ltd. Kong Kong establishment or
management
investment
Hong Hong Investment Acquiring
Xin Feng Enterprise Kong Kong and through
100.00%
Co., Ltd. management establishment or
investment
Acquiring
Shenzhen City
Commercial through
Shenfang Free Trade Shenzhen Shenzhen 95.00% 5.00%
trade establishment or
Trading Ltd.
investment
Shenzhen City Acquiring
Shenfang Investment through
Shenzhen Shenzhen Investment 90.00% 10.00%
Ltd. establishment or
investment
Shenzhen Special Acquiring
Economic Zone through
Real estate establishment or
Real Estate (Group) Shenzhen Shenzhen 95.00% 5.00%
development investment
Guangzhou Property
and Estate Co., Ltd.
Beijing fresh peak Beijing Beijing Acquiring
property through
development Real estate 75.00% 25.00% establishment or
management investment
limited company
Acquiring
Guangdong Jianbang through
Group (Huiyang) Huizhou Huizhou Real estate 51.00%
establishment or
Industrial Co., Ltd.
investment
Acquiring
Shenzhen Shenfang through
Chuanqi Real Estate Shenzhen Shenzhen Real estate 100.00%
establishment or
Development Co., Ltd.
investment
Note to shareholding ratio is different from the voting ratio in subsidiaries:
The basis of holding half or less of the voting rights but still controlling the investee and holding more than half
of the voting rights but not controlling the investee:
The basis for controlling significant structured entities in the scope of merger:
The basis for determining whether a company is an agent or a principal：
Other note：
① In consolidation scope, there are five subsidiaries in “revoked but not cancelled” condition: Beijing SPG
Property Management Limited, Guangzhou Huangpu Xizun real estate limited company, Shenzhen Special
Economic Zone Real Estate (Group) Guangzhou Property and Estate Co., Ltd., Fresh Peak Real Estate Dev.
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Construction (Wuhan) Co. Ltd. and Beijing Shenfang Property Management Co., Ltd. They are presented
on the basis of discontinued operations; these five subsidiaries have made full provision for impairment of
debt for the companies outside the consolidation scope.
② The cancelled, revoked and closed subsidiaries of the Company that are not included in the scope of
consolidation are as follows:
Principal Shareholding
Name of the Place of Business proportion
place of Acquisition method
Subsidiary registration nature
business
Direct Indirect
Shenzhen Shenfang Shenzhen Shenzhen Commercial 95.00 5.00 Acquiring through
Department Store trade establishment or
Co.Ltd investment
Paklid Limited Hong Kong Hong Kong Commercial 60.00 40.00 Acquiring through
trade establishment or
investment
Bekaton Property Australia Australia Real estate 60.00 -- Acquiring through
Limited establishment or
investment
Canada Great Wall Canada Canada Real estate -- 60.00 Acquiring through
(Vancouver) establishment or
investment
Guangdong Fengkai Fengkai Fengkai Manufacturing -- 90.00 Acquiring through
County Lianfeng Guangdong Guangdong establishment or
Cement investment
Manufacturing Co.,
Ltd.
Jiangmen Xinjiang Jiangmen Jiangmen Real estate -- 90.91 Acquiring through
Real Estate Co., Ltd Guangdong Guangdong establishment or
investment
Xi’an Fresh Peak Xi’an Xi’an Real estate -- 67.00 Acquiring through
Property Trading Shanxi Shanxi establishment or
Co., Ltd investment
Shenxi Limited Shenzhen Shenzhen Building 70.00 -- Acquiring through
Decoration establishment or
investment
Shenzhen Zhentong Shenzhen Shenzhen Mechanical 95.00 5.00 Acquiring through
New and electrical establishment or
Electromechanical engineering investment
Industry
Development Co.,
Ltd.
Shenzhen Real Shenzhen Shenzhen Electrome 100.0 -- Acquiring through
Estate chanical 0 establishment or
Electromechanical Management investment
Management
Company
Shenzhen Nanyang Shenzhen Shenzhen Hotel 95.00 5.00 Acquiring through
Hotel Co., Ltd. Management establishment or
152
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
investment
Shenzhen Shenzhen Shenzhen Industrial -- 100.0 Acquiring through
Kangtailong manufactu 0 establishment or
Industrial Electric ring investment
Cooker Co., Ltd.
Shenzhen Longgang Shenzhen Shenzhen Industrial -- 79.92 Acquiring through
Henggang Huagang Investment establishment or
Industrial Co., Ltd. investment
Note：
1、 Shenzhen Shenfang Department Store Co. Ltd called a shareholder meeting on 29 October 2007, decided
to terminate the business and establish a liquidation team to conduct the liquidation. The liquidation
team issued a liquidation report on 7 December, 2007.
2、 Paklid Limited, Bekaton Property Limited and Canada Great Wall (Vancouver) were established by the
group abroad in the early years. On 13 December 2000, the group held a board meeting and decided to
liquidate these three companies. Bekaton Property Limited and Canada Great Wall (Vancouver) have been
winded up.
3、 All assets from Guangdong Fengkai County Lianfeng Cement Manufacturing Co., Ltd. (including tangible
and intangible asset) were auctioned by the court on 22 January 2019, becoming a shell company.
4、 Shenxi Limited was a holding subsidiary of Shenzhen Tefa Real Estate Consolidated Services Co., Ltd. which
is a deregistered subsidiary of the group. By the Group’s announcement, “The notice on the merger of
Shenzhen Zhen Tung Engineering Ltd and Shenxi Limited” (Shenfang [1997] No.19), all businesses form
Shenxi Limited were undertaken by Shenzhen Zhen Tung Engineering Ltd and Shenxi Limited and were
revoked on 8 February 2002.
The group could no longer effectively control these invested companies which have not been included in the
consolidation scope were either been cancelled or ceased operation many years ago, and were no longer exist.
According to “Accounting Standard for Business Enterprises No. 33-Consolidated Financial Statements”, the
group already accrued full amount of impairment for the book value of the net investment in above
companies which are not included in the consolidated scope.
（2） Material non-wholly owned subsidiaries
Presented in RMB
Proportion
of
ownership Dividend declared Balance of non-
Profit or loss allocated controlling interests as
interest to non-controlling
Name of the Subsidiary to non-controlling int at
held by shareholders
erests during the year
non- during the year 2022.6.30
controlling
interests %
Guangdong Jianbang
Group (Huiyang) 49.00% -2,016,517.73 426,682,372.87
Industrial Co., Ltd.
Great Wall Estate Co.,
30.00% -151,549.78 -20,892,599.12
Inc
Fresh Peak Investment
45.00% -116,180,387.59
Ltd
153
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Barenie Co. Ltd. 20.00% -3,889,709.36
Note to shareholding ratio of minority shareholder is different from the voting ratio:
Other note：
（3） Key financial information about material non-wholly owned subsidiaries
Presented in RMB
As at 30 June 2022 As at 1 January 2022
Non
Non- - Non- Curre Non-
Curre Current
curr curr Total Curre curr nt curr Total
Name nt Total Total
ent liabilitie ent liabil nt ent ent liabilit
asset assets assets liabilit
asset s liabi ities assets asset liabili ies
s ies
s litie s ties
s
Guan
gdon
g
Jianb
ang
1,276 1,280 1,29 1,190 1,194 1,201
Grou 3,640 90,4 3,795 1,201,
,589, ,229, 1,291,76 1,85 ,571, ,367, 125,9 ,824,
p ,520. 40.3 ,473. 698,6
293.7 814.3 6,677.69 7,11 804.1 277.7 20.77 523.8
(Huiy 63 6 63 03.08
6 9 8.05 2 5 5
ang)
Indus
trial
Co.,
Ltd.
Great
Wall 103,
18,47 18,47 17,61 18,20 99,10 99,10
7,303 103,913, 913, 585,6
Estat 0,334 7,637 0.00 5,753 1,422 5,956. 5,956
.30 816.77 816. 69.06
e Co., .12 .42 .07 .13 86 .86
77
Inc
Fresh
Peak 258,
258,2 258,2
4,748 36,01 40,76 258,219, 219, 4,748 36,01 40,76
Invest 19,48 19,48
.07 6.90 4.97 487.07 487. .07 6.90 4.97
ment 7.07 7.07
07
Ltd
Baren 32,9
32,90 32,90
957.4 957.4 32,908,8 08,8 957.4 957.4
ie Co. 8,874. 8,874
1 1 74.92 74.9 1 1
Ltd. 92 .92
2
Presented in RMB
Current amount Amount of previous period
Name of Total Cash Total Cash
the
Operating compre flows Operatin compre flows
Subsidiar Net profit Net profit
y income hensive from g income hensive from
inco operating inco me operating
154
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
me activities activities
Guangdo
ng
Jianbang - - - - - -
Group 0.00 4,115,342.3 4,115,3 110,177,4 880,621.5 880,621.5 666,756,8
(Huiyang) 1 42.31 13.44 1 1 66.68
Industrial
Co., Ltd.
Great
Wall - - - -
260,141.1 260,141. 128,668.4
-505,165.93 4,531,6 495,723.3 127,844.8 127,844.8
Estate 0 10 3
44.62 9 0 0
Co., Inc
Fresh
Peak
0.00 0.00 0.00 0.00 0.00 3,153.52 -3,153.52 0.00
Investme
nt Ltd
Barenie
0.00 0.00 0.00 0.00 0.00 238.11 238.11 0.00
Co. Ltd.
Note：
（4） Material restriction on the use of the Group’s assets and the settlement of the Group’s liabilities
（5） Financial support or other support provided to structured entities included in the scope of the
consolidated financial statements
2. Transactions that cause changes in the Group’s interests in subsidiaries that do not result in loss of control
（1） Changes in the Group’s interests in subsidiaries:
（2） Impact from transactions with non-controlling interests and equity attributable to the shareholders of
the Group:
3. Interests in joint ventures or associates
（1） Material joint ventures or associates
（2） Key financial information of material joint ventures:
（3） Key financial information of material associates:
（4） Summarized financial information of immaterial joint ventures and associates:
Presented in RMB
Ending balance/amount incurred Opening balance/amount incurred
in the reporting period in the reporting period
Joint ventures:
The total number of the following
155
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
items based on shareholding ratio
Associates:
Aggregate book value of
272,168.28 377,489.65
investments
The total number of the following
items based on shareholding ratio
Note:
（5） Material restrictions on transfers of funds from investees to the Group
（6） Excess loss from joint ventures or associates
Presented in RMB
Accumulated Unrecognized loss (or Accumulated
Investee unrecognized share of net profit) for unrecognized
loss in prior periods the year loss as at 2022.6.30
Shenzhen Fresh Peak
property consultant Co., 2,217,955.89 2,217,955.89
Ltd
Note:Shenzhen Fresh Peak property consultant Co., Ltd was established on 15 March 1993 with registered
capital of 3,000,000 yuan. The group subscribed RMB 600,000 (20% in total capital). As at 30 June 2022, the
group contributed RMB 600,000 and already confirmed long-term equity invent lose RMB 600,000.
（7） Unrecognized commitments in connection with its investment in joint ventures
（8） Contingent liabilities in connection with its investment in joint ventures or associates
4. Material joint operations
5. Interests and interests in structured entities not included in the scope of consolidated financial
statements
Note to structured entities not included in the scope of consolidated financial statements:
6. Other
X. Risk Management of Financial Instruments
The Group's main financial instruments include the monetary funds, notes receivable, other receivables, Other
current assets, accounts receivable, other equity instrument investments, accounts payable, other payables,
short-term borrowing, long-term payables. Details of the various financial instruments are disclosed in the
relevant notes. The risks associated with these financial instruments and the risk management policies
156
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
adopted by the Group to mitigate these risks are described below. The management of the Group manages
and monitors these exposures to ensure that these risks are contained within the limits specified.
1. Risk management objectives and policies
The Group's goal in risk management is to strike an appropriate balance between risks and benefits, and strive
to reduce the adverse impact of financial risks on the Group's financial performance. Based on this risk
management objective, the Group has developed a risk management policy to identify and analyze the risks
faced by the Group, set an appropriate acceptable risk level and design the corresponding internal control
procedures to monitor the risk level of the Group.The Group regularly reviews these risk management policies
and the relevant internal control systems to adapt to market conditions or changes in the Group's business
activities. The Group's internal audit department also regularly or randomly checks whether the
implementation of the internal control system complies with the risk management policy.
The main risks arising from the Group's financial instruments are credit risk, liquidity risk, market risk
(including exchange rate risk, interest rate risk and commodity price risk).
The Board of Directors is responsible for planning and establishing the Group's risk management structure,
formulating the Group's risk management policies and relevant guidelines and overseeing the implementation
of risk management measures. The Group has developed risk management policies to identify and analyze the
risks faced by the Group. These risk management policies clearly stipulate specific risks, covering market risk,
credit risk, liquidity risk management and many other aspects. The Group regularly evaluates changes in the
market environment and the Group's business activities to determine whether to update its risk management
policies and systems.
The Group diversifies the risks of financial instruments through appropriate diversification of its portfolio of
investments and businesses, and reduces the risk of concentration in a single industry, a specific region or a
specific counterparty through the development of appropriate risk management policies.
（1）Credit Risk
Credit risk refers to the risk of financial loss to the Group resulting from the failure of the counterparty to fulfill
its contractual obligations.
The Group manages credit risks according to portfolio classification. Credit risks mainly arise from bank
deposits, notes receivable, accounts receivable, other receivables.
The Group's bank deposits are mainly held in state-owned banks and other large and medium-sized listed
banks (or mainly in financial institutions with good reputations and high credit ratings), and the Group does
not expect that the bank deposits will pose a significant credit risk.
For notes receivable, accounts receivable, other receivables and long-term receivables, the Group sets policies
to control credit risk exposure. The Group evaluates customers' credit qualifications and sets credit periods
based on their financial status, credit history and other factors such as current market conditions. The Group
will regularly monitor the credit records of customers. For customers with poor credit records, the Group will
157
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
use written methods to urge payment, shorten the credit period or cancel the credit period to ensure that the
overall credit risk of the Group is within a controllable range.
The debtors of the Group's accounts receivable are customers distributed in different industries and
regions.The Group continuously conducts credit assessments on the financial position of accounts receivable
and, where appropriate, takes out credit guarantee insurance.
The maximum credit risk exposure of the Group is the carrying amount of each financial asset on the balance
sheet. The Group does not provide any other security which may expose the Group to a credit risk.
Of the Group's accounts receivable, the accounts receivable of the top five customers account for 44.00% of
the Group's total accounts receivable (in 2021: 56.87%); Among other receivables of the Group, other
receivables from the top five companies in arrears amount to 58.94% (in 2021：63.70%) of the total amount
of other receivables of the Group.
（2）Liquidity risk
Liquidity risk refers to the risk that the Group will encounter a shortage of funds when fulfilling its obligations
to settle by delivering cash or other financial assets.
In managing liquidity risks, the Group maintains and monitors cash and cash equivalents deemed sufficient by
the management to meet the operational needs of the Group and to reduce the impact of cash flow
fluctuations. The Group's management monitors the use of bank borrowings and ensures compliance with
borrowing agreements. It also secured a commitment from major financial institutions to provide adequate
standby funds to meet short - and long-term funding needs.
The Group finances its working capital through funds generated from its operations and bank and other
borrowings. As at 30 June 2022, the Group's unutilized bank loan amount is RMB 500 million (31 December
2021: RMB 0 million).
At the end of the period, the maturity analysis of the financial assets, financial liabilities and off-balance sheet
guarantee items held by the Group according to the undiscounted remaining contract cash flow is as follows
(unit: RMB 10,000) :
Item 2022.6.30
Within one year Within one to five More than five Total
years years
Financial liabilities:
Short-term loans 5,683.12 5,683.12
Notes payable 23,581.87 23,581.87
Accounts payable 11,630.44 11,630.44
Interest payables 1,653.53 1,653.53
Other payables 54,221.08 54,221.08
Guarantees for client 36,201.90 36,201.90
Total financial liabilities
and contingent liabilities 132,971.94 132,971.94
158
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
At the beginning of the period, the maturity analysis of the financial assets, financial liabilities and off-balance
sheet guarantee items held by the Group according to the undiscounted remaining contract cash flow is as
follows (unit: RMB 10,000) :
Item 2021.12.31
Within one year Within one to five More than five Total
years years
Financial liabilities
Short-term loans 5,044.01 -- -- 5,044.01
Notes payable 24,737.64 -- -- 24,737.64
Accounts payable 14,144.76 -- -- 14,144.76
Interest payables 1,653.53 -- -- 1,653.53
Other payables 56,484.21 -- -- 56,484.21
Held-for-sale liabilities 5,791.56 783.69 -- 6,575.25
Guarantees for client 39,237.82 -- -- 39,237.82
Total financial liabilities
147093.53 783.69 - 147,877.22
and contingent liabilities
The amount of financial liabilities disclosed in the above table is undiscounted contractual cash flows and may
be different from the carrying amount on the balance sheet.
The maximum amount of a guarantee contract that has been signed does not represent the amount to be paid.
（3）Market risks
The market risk of financial instruments refers to the risk that the fair value or future cash flow of financial
instruments will fluctuate due to market price changes, including interest rate risk, exchange rate risk and
other price risks.
Interest rate risk
Interest rate risk refers to the risk that the fair value of a financial instrument or future cash flow will fluctuate
due to changes in market interest rates. Interest rate risk can arise from recognized interest-bearing financial
instruments and from unrecognized financial instruments (such as certain loan commitments).
The interest rate risk of the Group mainly arises from long-term bank borrowings. Floating interest rate
financial liabilities expose the Group to cash flow interest rate risk, while fixed interest rate financial liabilities
expose the Group to fair value interest rate risk. The Group determines the relative proportion of fixed and
floating rate contracts based on prevailing market conditions and maintains an appropriate mix of fixed and
floating rate instruments through regular review and monitoring.
During the reporting period, the Group operates by its own working capital. As at 30 June 2021, the Group has
no financial liabilities with fixed or floating interest rate, such as bank loan. Therefore, the Group believes that
the interest rate risk is insignificant.
Currency risk
159
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
The term "exchange rate risk" refers to the risk that the fair value of a financial instrument or future cash flow
will fluctuate due to changes in foreign exchange rates. Exchange rate risk can arise from financial instruments
denominated in a foreign currency other than the standard currency.
Exchange rate risk is mainly the Group's financial position and cash flows are affected by foreign exchange rate
fluctuations. In addition to the subsidiary established in Hong Kong holding assets in Hong Kong dollar as the
settlement currency, only a small amount of Hong Kong market investment business, the group's foreign
currency assets and liabilities accounted for the overall assets and liabilities of the proportion is not significant.
Therefore, the Group believes that the exchange rate risk is not significant.
2. Capital Management
The objective of the Group's capital management policy is to ensure that the Group can continue as a going
concern, thereby providing a return to shareholders and benefiting other stakeholders, while maintaining an
optimal capital structure to reduce the cost of capital.
In order to maintain or adjust its capital structure, the Group may adjust its financing method, adjust the
amount of dividends paid to shareholders, return capital to shareholders, issue new shares and other equity
instruments or sell assets to reduce its debt.
The Group monitors the capital structure on the basis of the debt-to-asset ratio (i.e., total liabilities divided by
total assets). As at 30 June 2022, the Group's liability to asset ratio was 24.02% (31 December 2021: 31.62%).
XI. Fair Value
1. Items and amounts measured at fair value at the end of reporting period
Presented in RMB
As at 30 June 2022
Item The second level of The third level of
The first level of fair
fair value fair value Total
value measurement
measurement measurement
I.Recurring fair
-- -- -- --
value measurement
Monetary Fund 404,148,060.54 404,148,060.54
Investments in
other equity 19,777,460.65 19,777,460.65
instrument
Total assets
measured at fair
404,148,060.54 19,777,460.65 423,925,521.19
value on a recurring
basis
II. Non-recurring
fair value -- -- -- --
measurements
160
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
2. Basis for determining the market price of the items measured based on the continuous and non -
continuous first level fair value
Unadjusted quoted prices in active markets that are observable at the measurement date for identical assets
or liabilities.
3. Items measured based on the continuous or uncontinuous 2nd level fair value, valuation technique as
used, nature of important parameters and quantitative information
4. Items measured based on the continuous or uncontinuous 3rd level fair value, valuation technique as
used, nature of important parameters and quantitative information
Range
Ending fair Valuation The input value cannot be
Item (weighted
value techniques observed
mean )
Equity instrument
investment
Net assets in the book
Non-listed equity
19,777,460.65 Net asset N/A
investments Liquidity discount
method
5. Items measured based on the continuous 3rd level fair value, sensitivity analysis on adjusted information
and unobservable parameters between the book value at beginning and end of the period
6. In case items measured based on fair value are converted between different levels incurred in the current
period, state the cause of conversion and determine conversion time point
7. Change of valuation technique incurred in the current period and cause of such change
8. the carrying value of other financial assets and financial liabilities which are not measured at fair value
varies
9. Other
The financial assets and financial liabilities of the Group measured at amortized cost mainly include monetary
funds, accounts receivable, other receivables, short-term borrowings, accounts payable, other payables, long-
term payables, etc.
Except for the following financial assets and financial liabilities, the carrying value of other financial assets and
financial liabilities which are not measured at fair value varies very little from fair value.
XII. Related parties and related party transactions
1. Information about the parent of the Group
Name Registration Business nature Registered Shareholding Percentage of
161
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
place capital percentage % voting rights %
Shenzhen Shenzhen, Investment, real
Investment
Guangdong estate development, 2,800,900.00 57.19% 57.19%
Holdings Co.,
Ltd. province guarantee
Note:the ultimate controlling party of the Group is State-owned Assets Supervision and Management
Commission of Shenzhen Municipal People’s Government.
2. Information about the subsidiaries of the Group
For information about the subsidiaries of the Group, refer to Note IX “interests in subsidiaries”.
3. Information about joint ventures and associates of the Group
For information about the joint ventures and associates of the Company, refer to Note IX. 3“Summarized
financial information of immaterial joint ventures and associates”
Joint ventures and associates that have related party transactions with the Group during this year or the
previous year are as follows:
Name of joint ventures or associates Relationship with the Group
4. Information on other related parties
Name Related party relationship
Shenzhen Water Planning & Design Institute Co., Ltd. Same controlling shareholders
Shenzhen General Institute of Architectural Design Same controlling shareholders
and Research Co., Ltd.
Guoren Property and Casualty Insurance Co., Ltd. Same controlling shareholders
Shenzhen Property Management Co., Ltd. Same controlling shareholders
Shenzhen Dongfang New world store Co., Ltd Participating stock companies
Not included in Consolidated Financial Statements’
Shenxi Limited Subsidiary that had been terminated its licenses by
law but not cancellation
Not included in Consolidated Financial Statements’
Shenzhen Zhentong New Electromechanical Industry Subsidiary
Development Co., Ltd.
(Long-term without operation)
Not included in Consolidated Financial Statements’
Shenzhen Nanyang Hotel Co., Ltd. Subsidiary that had been terminated its licenses by
law but not cancellation
Not included in Consolidated Financial Statements’
Shenzhen Real Estate Electromechanical
Subsidiary that had been terminated its licenses by
Management Company
law but not cancellation
Not included in Consolidated Financial Statements’
Shenzhen Longgang Henggang Huagang Industrial
Subsidiary that had been terminated its licenses by
Co., Ltd.
law but not cancellation
Guangzhou Bobi Enterprise Management Consulting
Shareholders of Shenzhen Jian ‘an Group Co., Ltd.
Co., Ltd.
162
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Directors, Supervisors, CFO and Board secretary Key management personnel
Note:Since February 11, 2022, the Group will lose control over Shenzhen Property Management Co., Ltd. due
to the disposal of all the equity of the subsidiary. The Group and Shenzhen Property Management Co., Ltd. are
still under the control of the parent company, and will be listed as related parties from February 11, 2022.
5. Transactions with related parties
（1） Purchases/sales
Purchase of goods/receiving of services
Presented in RMB
Year Approved Whether it Year
Related party Nature of transaction ended transaction exceeds the ended
2022.6.30 limit transaction limit 2021.6.30
Design of foundation
Shenzhen Water
ditch for Shenfang
Planning & Design 554,056.60 No
Guangmingli
Institute Co., Ltd.
project,etc.
Shenzhen General Design of Construction
Institute of Architectural Engineering of
763,773.58 No
Design and Research Shenfang Guangmingli
Co., Ltd. Project
Guoren Property and
Casualty Insurance Co., Insurance Service 4,134.00 No
Ltd.
Shenzhen Property
Property Service 100,579.23 No
Management Co., Ltd.
Sales of goods/rendering of services
Presented in RMB
Related party Nature of transaction Year ended 2022.6.30 Year ended 2021.6.30
Guoren Property and
Casualty Insurance Co., Rental Service 421,519.98
Ltd.
Shenzhen Property
Rental Service 724,518.75 42,160.81
Management Co., Ltd.
Shenzhen Ronghua JiDian
Rental Service 42,160.81
Co.,Ltd
Note:
（2） Trust/contracting arrangement
Asset management/contracting undertaken by the Group on behalf of related parties
Presented in RMB
Name of Type of Inception date Maturity date Trust/contr Trust/contr
Name of trustee/sub- assets of of acting acting
related party contra ctor entrusted/co trust/contracti trust/contract revenue
163
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
ntract ed ng ing revenue recognized
in
2022
Asset management / contracting undertaken by related parties on behalf of the Group
Presented in RMB
Nam Type of assets Trust/contracti
Name of e of entrusted/cont Inception date Maturity date Trust/contracti
ng revenue ng revenue
trustor/mai relate ra cted of of
recognized in
n d trust/contracti trust/contracti
2022
contractor party ng ng
（3） Leases
As the lessor
Presented in RMB
Lease income recognized Lease income recognized
Lessee Type of assets leased
in 2022 in 2021
Shenzhen Property
Building 724,518.75
Management Co., Ltd.
Guoren Property and
Casualty Insurance Co., Building 421,519.98
Ltd.
As the lessee
Presented in RMB
Rental costs for Variable lease
simplified short- payments not
term leases and included in the
low value asset measurement of Interest expense Increased right-
Type Rent paid
leases（if lease liabilities on lease liability of-use assets
of
Lesse asset applicable） （if applicable）
r s
lease Amoun Amoun Amoun Amoun Amoun
d Curren Curren Curren Curren Curren
t of t of t of t of t of
t t t t t
previou previou previou previou previou
amoun amoun amoun amoun amoun
s s s s s
t t t t t
period period period period period
Note:
（4） Guarantee
As the guarantor
Presented in RMB
Guarantee holder Amount of Inception date Maturity date of Guarantee expired
164
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
guarantee of guarantee guaran tee (Y/N)
As the guarantee holder
Presented in RMB
Amount of Inception date Maturity date of Guarantee expired
Guarantor
guarantee of guarantee guaran tee (Y/N)
（5） Funding from related party
Presented in RMB
Related party Amount of funding Inception date Maturity date Note
Funds received
Funds provided
（6） Transfer of assets and debt restructuring
Presented in RMB
Related party Nature of transaction Year ended 2022.6.30 Year ended 2021.6.30
（7） Remuneration of key management personnel
Presented in RMB
Item Year ended 2022.6.30 Year ended 2021.6.30
Remuneration of key management
2,902,600.00 3,399,100.00
personnel
（8） Other related party transactions
6. Receivables from and payables to related parties
（1） Receivables from related parties
Presented in RMB
As at 30 June 2022 As at 1 January 2022
Item Related party Provision for Provision for
Book value bad and Book value bad and
doubtful debts doubtful debts
Shenzhen Fresh
Accounts Peak property
1,118,383.88 1,118,383.88 1,118,383.88 1,118,383.88
receivable consultant
Co., Ltd
Other Guangdong
receivables Province 10,465,168.81 10,465,168.81 10,465,168.81 10,465,168.81
Huizhou Luofu
165
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Hill Mineral
Water Co., Ltd
Other Shenzhen
receivables Runhua
Automobile 3,072,764.42 3,072,764.42 3,072,764.42 3,072,764.42
Trading Co., Ltd
Other Canada
receivables GreatWall
89,035,748.07 89,035,748.07 89,035,748.07 89,035,748.07
(Vancouver)
Co., Ltd
Other Bekaton
receivables Property 12,559,290.58 12,559,290.58 12,559,290.58 12,559,290.58
Limited
Other
Paklid Limited 18,689,545.58 18,870,785.54 18,689,545.58 18,870,785.54
receivables
Other Shenzhen
receivables Shenfang
237,648.82 237,648.82 237,648.82 237,648.82
Department
Store Co. Ltd
Other Shenzhen
receivables RongHua JiDian 475,223.46 475,223.46 475,223.46 475,223.46
Co., Ltd
Other Xi’an Fresh Peak
receivables property
management& 8,419,205.19 8,419,205.19 8,419,205.19 8,419,205.19
Trading Co., Ltd
Other
Shenxi Limited 7,660,529.37 7,660,529.37 7,660,529.37 7,660,529.37
receivables
Other Shenzhen
receivables Nanyang Hotel 3,168,721.00 3,168,721.00 3,168,721.00 3,168,721.00
Co., Ltd.
（2） Payables to related parties
Presented in RMB
Item Related party As at 30 Jun 2022 As at 1 January 2022
Shenzhen Investment
Interest payables Shareholding Co. Ltd 16,535,277.94 16,535,277.94
Shenzhen Dongfang New
Other payables world store Co., Ltd 902,974.64 902,974.64
Guangdong Fengkai
Other payables County Lianfeng Cement 1,867,348.00 1,867,348.00
Manufacturing Co., Ltd.
Shenzhen Real Estate
Other payables Electromechanical 14,981,420.99 14,981,420.99
Management Company
Shenzhen Zhentong New
Other payables Electromechanical 8,827,940.07 8,827,940.07
Industry
166
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Shenzhen Shenfang
Other payables 639,360.38 639,360.38
Department Store Co. Ltd
Shenzhen Longgang
Other payables Henggang Huagang 165,481.09 165,481.09
Industrial Co., Ltd.
Guangzhou Bobi
Other payables Enterprise Management 193,016,852.52 193,016,852.52
Consulting Co., Ltd.
Shenzhen Property
Other payables 20,722,314.85 0.00
Management Co., Ltd.
7. Related party commitment
8. Other
XIII. Share-based payment
1. The general situation of share-based payment
□ Applicable √ Not Applicable
2. Share payment settled in equity
□ Applicable √ Not Applicable
3. Cash-settled share payments
□ Applicable √ Not Applicable
4. Modification and termination of share-based payment
5. Other
XIV. Commitments and contingencies
1. Significant commitments
As at 30 June 2022, there exist significant commitments.
Capital commitments entered into but not recognized in 2022.6.30 2021.12.31
the financial statements
Material sales or purchases contracts 475,137,087.80 475,137,087.80
As of June 30, 2022, the Group had no other commitments that should be disclosed.
For details of contingent liabilities related to investment of joint ventures or associates, refer to “Note IX.
Interest in other entities”.
167
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
2. Contingencies
（1） Significant contingencies existing on the balance sheet date
（1）Contingent liabilities arising from pending litigation and arbitration and their financial impact
Plaintiff Defendant Case Court of Amount Progress of
Appeal involved cases
Xi’an Fresh Peak Xi'an Commercial and Trade Investment Shanxi Higher 36.62 million Pending
Holding limited Commission Xi'an Commerce compensation Peopl’s Court yuan and
company and Tourism Co., Ltd. disputes interest
Xi’an Fresh Peak Holding limited company (hereinafter referred to as “Fresh Peak Company”) was Sino-foreign
joint venture set up in Xi’an. Among them, Fresh Peak Enterprise Co., Ltd made 67% of the shares in cash.
Xi’an Trade Building, a company directly under the Xi'an Commercial and Trade Commission (hereinafter
referred to as "Xi'an C&T Commission"), invested 16% of the shares in land use rights. Hong Kong Dadiwang
Industrial Investment Company holds 17% of the shares. The core business was property development. And
the project was Xi’an Trade Building. The project was started on 28 November 1995. But the project had been
stopped in 1996 because of the two parties’ differences on the operating policy of the project. In 1997, the
Xi’an government withdrew the Xi'an Fresh Peak investment project compulsively and assigned the project to
Xi’an Business Tourism Co., Ltd (hereinafter referred to as “Business Tourism Company”). But two parties had
insulted a lawsuit on compensation. The ShanXi Province High Peoples Court made a judgement “(2000) SJ-CZ
No.25”. The judgement was as follows: 1. Business Tourism Company had to pay for the compensation RMB
36,620 thousand to Xi’an Fresh Peak Company after the judgment entering into force. If the Business
Tourism Company failed to pay in time, it had to pay double debt interests to Xi’an Fresh Peak Company. 2.
Xi’an Joint Commission on Commerce had jointly and severally obligation of the interests of the compensation.
By auctioning assets of Business Tourism Company, the amount of RMB 15,201,000.00 had been called back.
The company has obtained new property clues, submitted an application for resumption of execution, this
case is still pending until 30 June 2022.
As at 30 June 2022, the book value of the long-term equity investment of Xi’an Fresh Peak Company is RMB
32,840,729.61. The book balance of assets was RMB 8,419,205.19. Both have been taken full provision for
impairment loss.
（2）Contingent liabilities arising from guarantee provided to other entities and related financial effects.
As at 30 June 2022, the Group provides commercial housing purchaser with guarantees at 36,201.90 ((RMB in
ten thousand) for the following loans:
Item Duration Amount (In ten thousand) Note
Shengfang CuiLin Until the Premises Permit mortgage 2,697.86
Building registration is finished and in bank
custody
ChuanQi DongHu Until the Premises Permit mortgage 2,228.92
registration is finished and in bank
168
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Building (Former custody
DongHuDiJing Building)
TianYue Bay Until the Premises Permit mortgage 30,898.12
registration is finished and in bank
custody
Lin Xin Building Until the Premises Permit mortgage 377.00
registration is finished and in bank
custody
Total 36,201.90
（3）Other contingencies（Not including contingent liabilities that are highly unlikely to result in an outflow
of economic benefits from the business）
For details of contingent liabilities related to investment of joint ventures or associates, refer to Note IX.3.
As at 30 June 2022, there is no other contingency to be disclosed.
（2） It is necessary to explain if the group has no contingencies to be disclosed.
There is no material contingencies to be disclosed.
3. Other
XV. Post balance sheet date events
1. Material post balance sheet date events
2. Profit appropriations after the balance sheet date
3. Sale returns
4. Other events after the balance sheet date
XVI. Other significant items
1. Corrections of errors in prior periods
（1） Retrospective method
Presented in RMB
Details of corrections of Financial item affected in
Adjustment procedure Cumulative amoun
errors the comparable period
169
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
（2） Prospective mothod
Presented in RMB
Reason for using prospective
Details of correction of errors Approval procedure
method
2. Major debt restructuring
3. Replacement of assets
（1） Exchange of non-monetary assets
（2） Other asset replacement
4. Annuity plan
5. Termination of operation
6. Segment reporting
（1） The basis for determining the reporting segments and accounting policy
（2） Financial information of the reporting segments
（3） In case there is no reporting segment or the total assets and liabilities of the reporting segments
cannot be disclosed, explain the reason
（4） Other note
7. Other significant transactions and matters that may affect investors' decision making
8. Other
XVII. Notes for main items in the parent company's financial statements
1. Accounts Receivable
（1） Accounts receivables disclosed by categories
Presented in RMB
As at 30 June 2022 As at 1 January 2022
Item Book balance Bad debt Book Book balance Bad debt Book
provision value provision value
170
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Provision Provisio
Amo Proporti Amo proporti Amoun Proportio Amo n
unt on unt on t n unt proporti
on
Bad debt
provisions
made on 9,649 9,64 9,649
9,649,4
,415. 97.51% 9,41 100.00% 0.00 49.22% ,415. 100.00% 0.00
an 15.20
20 5.20 20
individual
basis
Including
：
Bad debt
provisions 168, 9,708
246,2 78,18 9,954,4 246,1
made on a 2.49% 065. 68.25% 50.78% 2.47% ,285.
55.24 9.53 56.83 70.90
combinati 71 93
on basis
Including
：
Accounts
receivable
from 5,031
55,95 55,95 5,031,0
related 0.57% 25.67% ,038.
7.34 7.34 38.74
parties in 74
consolidat
ed scope
Accounts
receivable 168, 4,677
190,2 22,23 4,923,4 246,1
from 1.92% 065. 88.32% 25.11% 5.00% ,247.
97.90 2.19 18.09 70.90
other 71 19
customers
9,895 9,81 9,895 9,708
78,18 19,603,
Total ,670. 100.00% 7,48 99.21% 100.00% ,586. 50.48% ,285.
9.53 872.03
44 0.91 10 93
Bad debt provisions made on an individual basis:
Presented in RMB
As at 30 June 2022
Item Book balance Bad debt provision Percentage of Reason for accrual
provision
long-term accounts
Expected to be
receivable from 9,649,415.20 9,649,415.20 100.00%
uncollectable
property sales
Total 9,649,415.20 9,649,415.20
Bad debt provisions made on a combination basis: related parties in consolidation scope:
Presented in RMB
Item As at 30 June 2022
171
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Book balance Bad debt provision Percentage of provision
Within 1 year 55,957.34
Total 55,957.34
Note to the basis for determining the combination:
Bad debt provisions made on a combination basis: receivables from other customers:
Presented in RMB
As at 30 June 2022
Item
Book balance Bad debt provision Percentage of provision
Within 1 year 190,297.90 168,065.71 88.32%
Total 190,297.90 168,065.71
Note to the basis for determining the combination:
Please refer to the way of disclosing other receivables’ bad debt provision to disclose relevant information, if
the group choose to use general model of expected credit losses to accrue bad debts of accounts receivable.
□ Applicable √ Not Applicable
Disclosed by aging
Presented in RMB
Aging As at 30 June 2022
Within 1 year (with 1 year inclusive) 246,255.24
Above 3 year 9,649,415.20
Above 5 year 9,649,415.20
Total 9,895,670.44
（2） Additions, recoveries or reversals of provision for the current period
Provision for the current period：
Presented in RMB
As at 1 Amount changes in current period As at 30 June
Types January Recoveries or
2022 Provision Written-off Others 2022
reversals
Bad debt
9,895,586.10 78,105.19 9,817,480.91
provision
Total 9,895,586.10 78,105.19 9,817,480.91
Including: significant recoveries or reversals of bad debt provisions in the current period are as follows：
Presented in RMB
Name of the entity Recoveries or reversals amount Recovery manner
172
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
（3） Actual write-off of accounts receivable in the current
Presented in RMB
Item Written-off amount
Including the significant write-offs of accounts receivable are as follows：
Presented in RMB
Name of the Nature of Written-off Reason written- Approval Accounts
entity accounts amount off procedures receivable arising
receivable performed from related
party
transactions(Y/N)
（4） The top five units with the ending balance of accounts receivable collected by the debtor
Presented in RMB
Accounts receivable % of the total closing Bad debt provision
Name of the entity The ending balance balance of accounts The ending balance
receivable
Daxing Auto Parts Co.,
1,890,563.21 19.10% 1,890,563.21
Ltd.
Weidong Wang 1,200,000.00 12.13% 1,200,000.00
Guangyao Cai 876,864.11 8.86% 876,864.11
Peitong Huang 617,559.26 6.24% 617,559.26
Zhiying Zhang 593,244.00 5.99% 593,244.00
Total 5,178,230.58 52.32%
（5） Accounts receivable terminated due to the transfer of financial assets
（6） Transfer of accounts receivable and continue to involve the amount of assets and liabilities formed
2. Other receivables
Presented in RMB
Item As at 30 June 2022 As at 1 January 2022
Other receivables 1,606,595,768.89 1,587,300,891.76
Total 1,606,595,768.89 1,587,300,891.76
（1） Interest receivable
1） Classification of interest receivable
Presented in RMB
Item As at 30 June 2022 As at 1 January 2022
173
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
2） Significant overdue interest
Presented in RMB
Whether
impairment occurs
Overdue time and the basis for
Borrowing unit The ending balance (month) Overdue reason judgment
3） Bad Debt Provisions
□ Applicable √ Not Applicable
（2） Dividends receivable
1） Dividends receivable classification
Presented in RMB
Items (or invested units) As at 30 June 2022 As at 1 January 2022
2） Significant dividends receivable overdue more than one year are as follows:
Presented in RMB
Items (or invested As at 30 June Aging Reasons for not Whether
units) 2022 recovered impairment occurs
and the basis for
judgment
3） Bad Debt Provisions
□ Applicable √ Not Applicable
Other note:
（3） Other receivables
1） Other receivables disclosure by nature
Presented in RMB
Item Book balance as at 30 June 2022 Book balance as at 1 January 2022
Other receivables from the
201,363.15 203,659.15
collecting and paying on behalf
Other receivables from other
35,426,046.31 4,801,159.55
customers
Other receivables from related
137,211,313.52 137,211,313.52
parties
Other receivables in consolidated
2,230,859,423.27 2,237,602,605.41
scope
Total 2,403,698,146.25 2,379,818,737.63
174
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
2） Bad Debt Provision
Presented in RMB
first stage Second stage Third stage
To 12-month To lifetime
Bad Debt Provision To 12-month expected credit loss expected credit loss Total
expected credit loss (no credit (has occurred credit
impairment) impairment)
Balance as at 1
39,189.17 651,249,966.99 141,228,689.71 792,517,845.87
January 2022
Balance as at 1
January 2022 in
current period
Other movements 4,584,531.49
Balance as at 30
39,189.17 655,834,498.48 141,228,689.71 797,102,377.36
June 2022
Changes in the book balance with significant changes in the loss provision for the current period：
Applicable √ Not Applicable
Other movements in the loss provision were due to the exchange differences of foreign currency accounts
receivable of overseas subsidiaries.
Disclosure by aging
Presented in RMB
Aging As at 30 June 2022
Within 1 year (include 1 year) 275,846,265.28
1 to 2 years 554,599,664.52
2 to 3 years 78,698,092.26
Over 3 years 1,494,554,124.19
3 to 4 years 980,894,958.51
Over 5 years 513,659,165.68
Total 2,403,698,146.25
3） Additions, recoveries or reversals of provision for the current period
Provision for bad debts in the current period：
Presented in RMB
Amount changes in current period As at 30 June
As at 1
Types Recoveries or
January 2022 Additions Written-off Others 2022
reversals
Other
receivables 792,517,845. 797,102,377.
4,584,531.49
bad debt 87 36
provision
792,517,845. 797,102,377.
Total 4,584,531.49
87 36
175
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Including significant recoveries or reversals of bad debt provisions in the current period are as follows:
Presented in RMB
Name of the entity Amount of recoveries or reversals Recovery manner
4） Other receivables actually written off in the current period
Presented in RMB
Item Amount of written-off
Including significant accounts receivable writen-off situation is as follows：
Presented in RMB
Verification and Whether the
cancellation payment is
Name of the Nature of other Amount of
Reason procedures to generated by an
entity receivable written-off
be performed affiliate
transaction
5） The top five units of ending balance of other receivables
Presented in RMB
Proportion of Ending
Ending balance
Name of the Nature of other total ending balance of
of other Aging
entity receivables balance of other bad debt
receivables
receivables (%) provision
Shantou
Huafeng Estate Receivable from Within 1 year.
Development 766,160,642.87 1-3 years.. 31.87%
Subsidiary over3 years
Co., Ltd
Guangdong
Jianbang Group Receivable from Within 1 year.
(Huiyang) 681,097,870.89 28.34%
Subsidiary 1-2years
Industrial Co.,
Ltd.
Fresh Peak Receivable from Within 1 year. 508,377,320.
Enterprise Co., 518,037,906.74 21.55%
Subsidiary over five years 74
Ltd
American Great Receivable from 99,086,947.9
99,086,947.95 over five years 4.12%
Wall Co., Ltd Subsidiary 5
Fresh Peak Receivable from 88,700,902.7
88,700,902.73 over five years 3.69%
Zhiye Co., Ltd. Subsidiary 3
2,153,084,271.1 696,165,171.
Total 89.57%
8 42
6） Government subsidies receivable
Presented in RMB
176
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Name of Estimated time,
Name of the
government The ending balance Aging amount and basis
organization
subsidy item of collection
7） Other receivables terminated due to the transfer of financial assets
8） Amount of assets and liabilities formed by transferring other receivables and continuing to involve them
3. Long-term equity investments
Presented in RMB
As at 30 June 2022 As at 1 January 2022
Item Impairment Impairment
Book balance Book value Book balance Book value
reserve reserve
Investment
1,735,224,15 152,839,271. 1,582,384,88 1,735,224,15 152,839,271. 1,582,384,88
in
7.90 15 6.75 7.90 15 6.75
subsidiaries
Investment
in associates 12,250,013.8 11,977,845.5 12,250,013.8 11,977,845.5
272,168.28 272,168.28
and joint 6 8 6 8
ventures
1,747,474,17 164,817,116. 1,582,657,05 1,747,474,17 164,817,116. 1,582,657,05
Total
1.76 73 5.03 1.76 73 5.03
（1） Investment in subsidiaries
Presented in RMB
Increase/ Decrease (+ / -) in current period provision
As at 1 As at 30 for
Decrease Provision
January of June 2022 impairme
Name of Additional
2022 investment for nt as at
investee Other (book
(book investment
impairmen value) 30 June
value)
t 2022
Shenzhen
20,605,04 20,605,047
Petrel Hotel
7.50 .50
Co. Ltd.
Shenzhen
City
9,000,000. 9,000,000.
Shenfang
00 00
Investment
Ltd.
Fresh Peak
556,500.0
Enterprise 556,500.00
0
Ltd.
Fresh Peak
22,717,69 22,717,697
Zhiye Co.,
7.73 .73
Ltd.
Shenzhen
Special 19,000,000
Economic .00
Zone Real
177
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Estate
(Group)
Guangzhou
Property
and Estate
Co., Ltd.
Shenzhen
Zhen Tung 11,332,32 11,332,321
Engineering 1.45 .45
Ltd
American
1,435,802. 1,435,802.
Great Wall
00 00
Co., Ltd
Shenzhen
City
4,750,000. 4,750,000.
Shenfang
00 00
Free Trade
Trading Ltd.
Shenzhen
Huazhan
Constructio 6,000,000. 6,000,000.
n 00 00
Supervision
Co., Ltd.
Kai Luk
212,280.0
Company 212,280.00
0
Limited
Beijing
Shenfang
Property 500,000.00
Manageme
nt Co., Ltd.
Shenzhen
Lain Hua
13,458,21 13,458,217
Industry
7.05 .05
and Trading
Co., Ltd.
Shenzhen
City SPG
30,850,00 30,850,000
Long Gang
0.00 .00
Developme
nt Ltd.
Beijing
Fresh Peak
Property
Developme 64,183,888
nt .90
Manageme
nt Limited
Company
Shantou
City
16,467,02 16,467,021
Huafeng
1.02 .02
Real Estate
Devepment
178
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Co., Ltd
Paklid
201,100.00
Limited
Bekaton
Property 906,630.00
Limited
Shenzhen
Shenfang
9,500,000.
Department
00
Store Co.
Ltd.
Shantou
58,547,652
Fresh Peak
.25
Building
Guangdong
Jianbang
Group 450,000,0 450,000,00
(Huiyang) 00.00 0.00
Industrial
Co., Ltd.
Shenzhen
Shenfang
Chuanqi 995,000,0 995,000,00
Real Estate 00.00 0.00
Developme
nt Co., Ltd.
1,582,384, 1,582,384, 152,839,27
Total
886.75 886.75 1.15
（2） Investment in associates and joint ventures
Presented in RMB
Increase/ Decrease (+ / -) in the Jan to Jun 2022
Incom
Annou
Openi e from
nced
Other Ending Ending
ng Equity
Additi for balance
Decre invest compreh Provisi balanc
balanc Other distrib of the
Investe onal ase of ment ensive equity on for Oth e provisio
es recog
e invest invest move uting ers n for
nized Income impirm (book impairm
ment ment
(book ment adjustm cash ent value) ent
under
value) ent
equity divide
metho nd or
d profit
I. Joint Venture
Fengka
i 9,455,46
Xinghu 0.00 0.00
5.38
a Hotel
Subtot 9,455,46
0.00 0.00
al 5.38
179
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
II. Associates
Shenz
he n
Rongh
ua 272,16 272,16 1,076,95
Jidian 8.28 8.28 4.64
Co.,
Ltd
Shenz
he n
Runhu
a
1,445,42
Autom 0.00 0.00
5.56
obile
Tradin
g Co.,
Ltd
Subtot 272,16 272,16 2,522,38
al 8.28 8.28 0.20
272,16 272,16 11,977,8
Total
8.28 8.28 45.58
（3） Other note
4. Operation Income and Costs
Presented in RMB
Jan to Jun 2022 Jan to Jun 2021
Items
Income Costs Income Costs
Principal business 160,962,949.24 48,054,643.10 455,734,779.10 115,125,525.93
Other businesses 6,035.31 6,035.31
Total 160,968,984.55 48,054,643.10 455,740,814.41 115,125,525.93
Revenue related information:
Information related to performance obligations:
There are four criteria need to be satisfied when the group recognizing the revenue from property sales:
(1) the sale contract has been signed and filed with the land department; (2) the property development is
completed and pass the acceptance; (3) For Lump-sum payment, revenue is recognized by the group when
the consideration is fully received. For instalment payment, revenue is recognized when the first installment
has been received and the bank mortgage approval procedures have been completed. (4) completed the
procedures for entering the partnership in accordance with the requirements stipulated in sale contract.
Information related to the transaction price allocated to the remaining performance obligations:
At the end of the reporting period, the amount of revenue corresponding to the performance obligations
that have been signed but not yet performed or not yet completed is RMB 149,766,505.08 yuan, Among
them, RMB35,427,921.08 yuan is expected to be recognized as revenue in 2022, RMB 56,509,104.00 is
180
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
expected to be recognized as revenue in the year 2023, and RMB 56,509,104.00 yuan is expected to be
recognized as revenue in the year 2024.
5. Investment income
Presented in RMB
Item Jan to Jun 2022 Jan to Jun 2021
Investment income from disposal
174,021,073.48
of long-term equity investment
Investment income from disposal
159,619.01
of financial assets held for trading
Dividend income from other equity
instrument investments during the 813,960.00
holding period
Total 174,994,652.49
6. Other
XVIII. Supplementary Information
1. Statement of non-recurring gains and losses for the current period
√ Applicable □ Not Applicable
Presented in RMB
Item Amount Note
Gains and losses on disposal of Investment income in disposal of
163,352,077.77
non-current assets subsidiary equity
Government subsidies in the
current profit and loss（except the
part that are closely related to the
company's normal business
operations, comply with national 400,232.43 Government grants received
policies and regulations, and will
continuously enjoyed with a fixed
or quantitative manner according
to certain standards）
Debt Restructuring Gains and
2,489,520.46 Debt Restructuring Proceeds
Losses
Except for the effective hedging
business related to the normal
operation of the company, gains
and losses from changes in fair
value arising from the holding of Changes in fair value and
tradable financial assets and 5,123,349.63 investment income arising from
tradable financial liabilities, and investment in monetary funds
the investment income from the
disposal of financial assets held for
trading. financial liabilities held for
trading or available-for-sale
181
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
financial assets.
Non-operating income/(expenses)
506,908.18
except the above
Less: Amount affected by the
42,968,022.12
income tax
Amount affected by minority
914,898.77
interests
Total 127,989,167.58 --
Details of other profit and loss items that meet the definition of non recurring gain and loss:
□Applicable √ Not Applicable
Details of the company does not have other profit and loss items that meet the definition of non recurring
profit and loss.
Description of defining the non recurring profit and loss items listed in ‘Explanatory Announcement No. 1 on
information disclosure of companies offering securities to the public - non recurring profits and losses’ as
recurring profit and loss items.
□Applicable √ Not Applicable
2. Return on equity and earnings per share
Basic earnings per share
Profit in reporting period Basic earnings per share Diluted earnings per
Basic earnings per share
share
Net income attributable
to the common
3.62% 0.1435 0.1435
shareholders of the
Group
Net profit attributable to
common shareholders of
a company after 0.43% 0.0169 0.0169
deducting non-recurring
gains and losses
3. Differences in accounting data under domestic and foreign accounting standards
（1） The difference between net profit and net assets in the financial report disclosed in accordance with
International Accounting Standards and Chinese Accounting Standards
□ Applicable √ Not Applicable
Presented in RMB
Net profit Net assets
Amount of previous
Current amount Ending balance Opening balance
period
According to the
accounting 145,128,330.14 132,447,122.14 3,996,719,159.82 3,938,260,291.97
standards for
182
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Chinese enterprises
Items and Amount Adjusted according to International Accounting Standards:
According to the
international
145,128,330.14 145,128,330.14 4,085,745,239.82 3,938,260,291.97
accounting
standards
（2） The difference between net profit and net asset in the financial report disclosed in accordance with
International accounting standards for overseas enterprises and Chinese accounting standards for
enterprises
□ Applicable √ Not Applicable
（3） Note to the discrepancy in accounting data under the accounting standards outside Mainland China.
In case the discrepancy in data which have been audited by an overseas auditing agent has been adjusted,
please specify the name of the overseas auditing agent.
4. Other
183
