ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE
& PROPERTIES (GROUP) CO., LTD.
INTERIM REPORT 2023
2023-031
【August 2023】
1
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Part I Important Notes, Table of Contents and Definitions
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of ShenZhen 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.
Tang Xiaoping, the Company’s General Manager, Wang Jianfei, the Company’s Chief
Financial Officer, and Zhou Hongpu, 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 and
interested parties are reminded to be sufficiently aware of the risks involved and understand
the differences between plans, forecasts and promises.
The Company has no interim dividend plan, either in the form of cash or stock.
This Report and its summary have been prepared in both Chinese and English. Should there
be any discrepancies or misunderstandings between the two versions, the Chinese versions
shall prevail.
2
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Table of Contents
Part I Important Notes, Table of Contents and Definitions ........................................................... 2
Part II Corporate Information and Key Financial Information ................................................... 6
Part III Management Discussion and Analysis ............................................................................... 9
Part IV Corporate Governance ...................................................................................................... 22
Part V Environmental and Social Responsibility .......................................................................... 23
Part VI Significant Events ............................................................................................................... 24
Part VII Share Changes and Shareholder Information ............................................................... 30
Part VIII Preferred Shares .............................................................................................................. 34
Part IX Bonds ................................................................................................................................... 35
Part X Financial Statements ........................................................................................................... 36
3
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
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.
4
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
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.
5
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
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 Tang Xiaoping
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@sfjt.sihc.com.cn spg@sfjt.sihc.com.cn
III Other Information
1. Contact Information of the Company
Indicate by tick mark whether any change occurred to the registered address, office address and their zip codes, website address,
email address and other contact information of the Company in the Reporting Period.
□ Applicable Not applicable
No change occurred to the said information in the Reporting Period, which can be found in the 2022 Annual Report.
2. Media for Information Disclosure and Place where this Report is Kept
Indicate by tick mark whether any change occurred to the information disclosure media and the place for keeping the Company’s
periodic reports in the Reporting Period.
□ Applicable Not applicable
The website of the stock exchange, the media and other websites where the Company’s periodic reports are disclosed, as well as
the place for keeping such reports did not change in the Reporting Period. The said information can be found in the 2022 Annual
Report.
6
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
3. Other Information
Indicate by tick mark whether any change occurred to other information in the Reporting Period.
□ Applicable Not applicable
IV Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes No
H1 2023 H1 2022 Change (%)
Operating revenue (RMB) 263,616,779.07 366,184,498.90 -28.01%
Net profit attributable to the
listed company’s shareholders -37,118,182.81 145,128,330.14 -125.58%
(RMB)
Net profit attributable to the
listed company’s shareholders
-42,468,909.15 17,139,162.56 -347.79%
before exceptional gains and
losses (RMB)
Net cash generated from/used
-192,140,948.04 -548,115,143.34 64.95%
in operating activities (RMB)
Basic earnings per share
-0.0367 0.1435 -125.57%
(RMB/share)
Diluted earnings per share
-0.0367 0.1435 -125.57%
(RMB/share)
Weighted average return on
-0.94% 3.66% -4.60%
equity (%)
30 June 2023 31 December 2022 Change (%)
Total assets (RMB) 5,453,181,740.50 5,689,769,802.18 -4.16%
Equity attributable to the
listed company’s shareholders 3,903,638,382.72 4,004,240,547.70 -2.51%
(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 2023 H1 2022 Ending amount Beginning amount
Under CAS -37,118,182.81 145,128,330.14 3,903,638,382.72 4,004,240,547.70
Adjusted as per IFRS
Under IFRS -37,118,182.81 145,128,330.14 3,903,638,382.72 4,004,240,547.70
2. Net Profit and Equity Differences under CAS and Foreign Accounting Standards
□ Applicable Not applicable
No such differences for the Reporting Period.
7
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
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
assets (inclusive of impairment 3,750.50
allowance write-offs)
Government subsidies charged to current
profit or loss (exclusive of government
subsidies consistently given in the
123,732.31 Government grants received
Company’s ordinary course of business
at fixed quotas or amounts as per
government policies or standards)
Gain or loss on assets entrusted to other Change in fair value of monetary fund investments
3,638,607.35
entities for investment or management and return on investment
Gain or loss on contingencies unrelated
to the Company's normal business 1,644,822.69
operations
Non-operating income and expense other
-37,754.41
than the above
Less: Income tax effects 22,432.10
Total 5,350,726.34
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.
8
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
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 2023, as the economy and society fully returned to normal operations, macro policies took
effect, and the national economy rebounded. The Central Government actively expressed support for the real
estate sector to guide its healthy development. Various regulatory policies were relaxed, financing channels for
real estate companies expanded, interest rate cuts supported residential mortgages, but the policy effects were
somewhat delayed, and market confidence is expected to further recover.
(II) Review of the Company’s operations in the Reporting Period
Facing an increasingly complex external context and tougher reform and development tasks in the Reporting
Period, the Company conscientiously implemented the decisions and arrangements of the State-owned Assets
Supervision and Administration Commission of the People’s Government of Shenzhen Municipality (Municipal
SASAC) and Shenzhen Investment Holdings Co., Ltd. (SIHC). Under the leadership of the new leadership team,
SPG employees worked in unity, took concrete actions, demonstrated the Company’s resilience, and maintained
an upward development trend. The main achievements are as follows:
1. Stable and orderly operations in the core business. The Company focused on project planning, schedule, and
milestone management. Through BIM technology empowerment and adherence to high standards, we ensured
the schedule and quality of projects under construction like SPG Guangmingli. We made full efforts to promote
sales and marketing for projects. Since the opening in late April, the SPG Guangmingli project display centre
has hosted over 1,000 customers. The Donghu Mingyuan project cleared out remaining units. We strengthened
operations of our own properties, leveraged the development of “Buildings for Shenzhen-Hong Kong Specialty
Industry” to promote leasing and operations for SPG Plaza’s existing properties. In the first half of the year,
newly leased areas were 2,374 square meters, renewed leased areas were 10,690 square meters, and the
occupancy rate reached 74.21%. We intensified efforts to sell existing housing inventory. Properties like Floors
1-2 of Guoshang Mansion and Buildings 25 and 26 of Wenjin Garden were successfully listed on The Stock
Exchange of Hong Kong Limited.
2. Made full efforts to tap potentials and expand. We thoroughly explored internal business potentials and
managed affiliated enterprises. The newly signed construction contracts worth RMB142 million for Zhentong
Engineering. We added RMB49.775 million in online signed sales for Shantou Branch, expanded supervision
projects by 2 for Huazhan Construction Supervision, and turned losses into profits for Petrel Hotel. We
vigorously activated internal stock resources, accelerated the land title confirmation for the “Xinfeng Building”
project, and signed a transaction agreement with the counterparty for the sale of commercial land in Los
9
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Angeles, USA. We proactively promoted land investment, tracked real estate market conditions, closely
followed Shenzhen land auction dynamics, and continued land expansion research.
3. Accelerated exploration of future development. To implement high-quality development requirements, we
systematically and deeply investigated the Company’s current management status and external environment,
and examined and revised the Group’s “14th Five-Year” strategic plan from a higher perspective, clarifying
future guidelines and strategic tasks to form a framework for the “14th Five-Year” strategic plan revision. We
continued to strengthen tracking of the China Securities Regulatory Commission’s adjustments to optimise
equity financing policies for real estate enterprises, conducted research on future development accordingly, and
strove to achieve synergistic breakthroughs in the process of supporting the controlling shareholder’s
development strategy.
4. Continuously consolidated the internal control foundation. Nearly 50 new management systems were
formulated across the Company in the first half of the year. We optimized procurement and cost control systems,
managed project costs throughout the entire process, conducted in-depth risk control and internal audits on
capital usage and contract management, and continuously strengthened the internal control system foundation.
Adhering to bottom-line thinking, in view of the growing risks in the industry, we made forward-looking
assessments combining our project situations to effectively prevent and resolve operational risks and safeguard
state-owned assets. We strengthened financial coordination to guarantee project development and operating
capital needs, and persevered in production safety, petition management, public opinion monitoring and other
efforts to create a harmonious and stable environment for development.
5. Party building provided cohesive strength. We adhered to high-quality Party building to lead high-quality
development, giving full play to the Party organisation’s leadership role in “setting the direction, managing the
big picture, and ensuring implementation”. We gradually built an internal Party supervision-led “mega
supervision” system, with dedicated and business supervision mutually coordinated. We implemented
responsibilities for Party management and governance, and continuously consolidated the Party building
foundation in basic organisations, systems, and teams. Combining practice, we carried out in-depth education,
focused strengths to solve problems and promote development, used “One Brand for One Enterprise” Party
building brand as a carrier to pool internal strengths, and advanced the integration of Party building with
business management.
The Company is subject to the information disclosure requirements for the real estate industry in the Disciplinary and
Regulatory Guideline No. 3 of the Shenzhen Stock Exchange for Listed Companies—Industry-specific Information
Disclosure.
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
10
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Linxinyuan Phase IV 3.23 6.45 6.45
Total 10.70 26.40 26.40
Development status of major projects:
Plann Floor
Cumu
ed area Expec
Time lativel Cumu
floor compl ted
The for Site y lative
Name area eted total
Comp comm % % area compl invest
City/r of Locati with in the invest
Status any’s encem devel constr （㎡ eted ment
egion projec on plot Curre ment
intere ent of oped ucted floor (RMB
t ） ratio nt (RMB
st constr area ’0,000
（㎡ Period ’0,000
uction （㎡ )
（㎡ )
） ）
）
Frame
Linxi 11
work
Huizh nyuan Huiya 51.00 64.00 64,27 159,7 115,7 74,58
in June 64%
ou Phase ng % % 8 61 50 4
constr 2021
I
uction
Found
SPG Guan 19
ation
Shenz Guan gming 100.0 Januar 74.00 10,72 53,60 151,7 112,4
pit 74%
hen gming Distri 0% y % 1 5 58 37
being
li ct 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
area area pre- sold/so Cumul settled revenu
The e
with availab sold/so ld in atively in the e
Name Compa genera settled
City/re Locati plot le for ld the Curren settled
of Status ny’s te in floor
gion on ratio sale floor Curren t in the
project interes the
（㎡ （㎡ area t area Period Curren
t Curren
（㎡ Period (㎡) （㎡ t
） ） t
Period
） （㎡ Period ） (RMB’
） (RMB’
0,000)
0,000)
Chuan
qi
Luohu Ready
Shenz Dongh 100.00
Distric for 55,727 32,857 32,857 194 1,483 32,857 194 1,483
hen u %
t sale
Mingy
uan
Longg
Ready
Shenz Cuilin ang 100.00
for 60,111 56,137 52,884 52,884 2,469
hen yuan Distric %
sale
t
Chaoy
Tianyu Ready
Shanto ang 100.00 153,47 160,37 117,73 105,47
ewan for 2,850 1,656 3,818 2,180
u Distric % 0 2 4 3
Phase I sale
t
Tianyu Chaoy
Ready
Shanto ewan ang 100.00 127,77 137,05
for 33,893 5,622 3,221 31,993 6,481 3,672
u Phase Distric % 0 9
sale
II t
Huiya
Linxin On
Huizh ng 51.00 159,76 159,76
yuan pre- 2,792 2,236 2,558
ou Distric % 1 1
Phase I sale
t
Rental status of major projects:
Name of The Company’s Rentable area Cumulative Average
Location Use
project interest （㎡） rented area occupancy rate
11
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
（㎡）
Real Estate
Shenzhen Commercial 100.00% 3,413.88 3,413.88 100.00%
Mansion
North Tower of
Guoshang Shenzhen Commercial 100.00% 4,819.71 4,819.71 100.00%
Mansion
Petrel Building Shenzhen Commercial 100.00% 22,475.47 22,475.47 100.00%
SPG Plaza Shenzhen Office building 100.00% 60747.69 32,333.08 53.23%
Podium of SPG
Shenzhen Commercial 100.00% 19886.3 16,123.49 81.08%
Plaza
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
Financing Ending balance
range/average
channel of financings Within 1 year 1-2 years 2-3 years Over 3 years
financing cost
Bank loans 161,876,610.82 3.70%-4.20% 19,983,173.22 79,432,000.00 62,461,437.60
Total 161,876,610.82 19,983,173.22 79,432,000.00 62,461,437.60
Development strategy and operating plan for the coming year:
In the second half of the year, the Company will anchor its annual key tasks and goals, focusing on completing
the clearance of existing housing inventory, the construction and sales of the Guangmingli project, advancing
the construction of “Buildings for Shenzhen-Hong Kong Specialty Industry”, and exploring new paths for
future development. We will exert all efforts to “maintain sales, reduce inventory, prevent fluctuations, expand
growth, improve quality, and enhance vitality”, effectively tackling the challenges of future development.
1. Prioritise “Sales Volume”. The Company will seize the market window, control marketing milestones, and
strengthen marketing’s coordination and guidance for project sales across its affiliated enterprises. Through a
multidimensional approach encompassing market analysis, product positioning, target audience identification,
channel integration, and atmosphere enhancement, we will diversify customer acquisition and conversion
methods. We are fully committed to achieving the annual sales target for the Guangmingli project and driving
sales for projects such as Tianyuewan by the Shantou Branch.
2. Focus on “Reducing Inventory”. The Company will align with market demand, leverage resources from
agency platforms, refine broad-based marketing incentives, explore self-developed customer channels, and
strive to achieve the annual sales target for legacy projects. We will strengthen intermediary channel
engagement and promotion, facilitating transactions for properties such as Guoshang, Yitai, and Wenjin Garden.
Benchmarking against the market, we will proactively enhance existing products, intensify self-owned property
leasing efforts, and endeavour to fulfill the overall annual task target.
3. Expand “Sales Growth”. The Company will consistently drive the activation of internal assets and unearth
operational potential, continually expanding resources and performance in the core business. Following the
annual task objectives set at the beginning of the year, we will focus on managing affiliated enterprise
operations, maximizing potential, and striving to achieve the annual revenue target. Efforts will be made to
12
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
activate legacy internal resources and bolster core business reserves. We will vigorously advance the revision
and development of the “14th Five-Year” strategic plan, guiding future corporate reform and development.
4. Enhance “Quality”. The Company will concentrate on elevating operational planning capabilities, centering
on high-efficiency coordination of projects, cycles, and expertise across the entire spectrum of our core business.
Operating plans will serve as the main thread, aiming for development progress and quality, focusing on key
milestones, optimizing project organisation, and controlling development timelines to improve operational
quality and efficiency. A comprehensive optimisation of the marketing system will be pursued from dimensions
such as market research, product positioning, customer analysis, and channel integration, continuously
enhancing marketing capabilities for new and existing projects. The construction of the organisational system
and supportive capacity will be reinforced, actively securing specialised talents for future development,
enhancing incentive and restraint mechanisms, and unlocking internal value creation.
5. Mitigate “Variable Risks”. The Company will thoroughly assess potential risks in investment and project
expansion, establish risk assessment and early warning mechanisms, and minimise future project risks. We will
proactively address and mitigate potential risks, explore financing channels, and ensure project funding
requirements are met.
6. Boost “Energy”. The Company will persistently uphold its Party building responsibilities, strengthen ethical
and clean governance, safeguard ideological positions, promote the deep integration of Party building and
operations, and harness the “red engine” of Party building to drive high-quality development. We will translate
the results of theme education into tangible work outcomes, leveraging the “One Brand for One Enterprise”
Party building brand to explore new paths for integrating Party building and business, fortify our “battle
fortress”, and strive to be the “pioneers of challenges”, continuously harnessing the guiding and safeguarding
power of Party building.
Provision of guarantees for homebuyers on bank mortgages:
Applicable □ Not applicable
Guarantee amount (R
Project Guarantee period Note
MB’0,000)
Until the property ownership certificate is registered as
Shanglinyuan 49.35
collateral and handed over to bank for keeping
Until the property ownership certificate is registered as
Cuilinyuan 2,148.92
collateral and handed over to bank for keeping
Chuanqi Donghu Until the property ownership certificate is registered as
1,229.46
Mingyuan collateral and handed over to bank for keeping
Until the property ownership certificate is registered as
Tianyuewan 33,640.55
collateral and handed over to bank for keeping
Until the property ownership certificate is registered as
Linxinyuan 970.00
collateral and handed over to bank for keeping
Total 38,038.27
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):
13
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Applicable □ Not applicable
Compatibilit
Investment As % of the Cumulative
Type of As % of total Disinvestme y of actual
Project amount peak of returns
investor investment nt investment
(RMB) project funds (RMB)
and returns
Director,
supervisor or
senior
Linxinyuan 8,950,000.00 39.25% 0.90% 0.00 N/A N/A
management
of the
Company
II Core Competitiveness Analysis
As the earliest real estate developer founded in the Shenzhen Special Economic Zone, the Company helped
build the early city, and 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, as well as
winning the bid in the new China’s first auction of land use rights held in the Shenzhen Special Economic Zone.
After more than 40 years of development, the Company has grown into a business group with real estate
development and operation as its main business, integrating engineering and construction, project supervision,
asset management and other diversified operations. 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.
The Company has been granted the titles of “Socially Responsible Company” and “Honest (Quality) Company”
in the real estate sector of Shenzhen for two consecutive years. Additionally, it was selected as one of the "Most
Valuable Brands for Investment of Chinese Listed Companies" and "Most Socially Responsible Brands of
Chinese Listed Companies" in the 2022 Brand Power (Longcheng) Forum & the Fourth Conference on Top 500
Brands of Chinese Listed Companies.
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 2023 H1 2022 Change (%) Main reason for change
Decreased revenue
Operating revenue 263,616,779.07 366,184,498.90 -28.01%
from property sales
Cost of sales 217,229,426.83 239,885,272.72 -9.44%
Selling expense 8,790,640.18 10,726,031.33 -18.04%
14
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Project development
Administrative expense 23,453,199.45 33,013,300.52 -28.96% and staff structure
adjustments
Decreased bank
Finance costs -612,267.71 -3,601,554.32 83.00% balances and deposit
interest income
Income tax expense -2,580,629.05 59,036,968.69 -104.37% Decreased gross profit
Decreased payment of
Net cash generated land value-added tax
from/used in operating -192,140,948.04 -548,115,143.34 -64.95% for the Chuanqi
activities Donghu Mingyuan
project
A payment for the
Net cash generated disposal of subsidiary
from/used in investing 138,197,734.83 255,526,904.00 -45.92% was received in the
activities same period of last
year
Net cash generated
Additional bank loan in
from/used in financing 38,186,866.07
activities the current period
Decreased payment of
land value-added tax
for the Chuanqi
Net increase in cash
-15,583,954.90 -292,337,340.43 94.67% Donghu Mingyuan
and cash equivalents
project and receipt of
payment for disposal of
subsidiary
Major changes in the profit structure or sources of the Company in the Reporting Period:
Applicable □ Not applicable
Net profit largely came from recurrent business operations in the current period, while in the same period of last year, exceptional
gains such as income from the disposal of subsidiary were the primary sources of net profit.
Breakdown of operating revenue:
Unit: RMB
H1 2023 H1 2022
As % of total As % of total Change (%)
Operating revenue operating revenue Operating revenue operating revenue
(%) (%)
Total 263,616,779.07 100% 366,184,498.90 100% -28.01%
By operating division
Property sales 72,404,365.93 27.47% 228,409,271.55 62.38% -34.91%
Engineering and
149,278,954.13 56.63% 103,248,547.59 28.20% 28.43%
construction
Rental service 35,655,793.46 13.53% 16,729,533.24 4.57% 8.96%
Property
1,579,444.44 0.60% 11,075,828.00 3.02% -2.42%
management
Other 4,698,221.11 1.78% 6,721,318.52 1.84% -0.06%
By product category
Residential units 71,997,900.22 27.31% 223,833,107.28 61.13% -33.82%
Shops and parking
406,465.71 0.15% 4,576,164.27 1.25% -1.10%
lots
Other 191,212,413.14 72.53% 137,775,227.35 37.62% 34.91%
By operating segment
Guangdong
263,276,484.95 99.87% 318,380,165.32 86.95% 12.92%
Province
Other regions in 0.00 0.00% 47,804,333.58 13.05% -13.05%
15
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
China
Overseas 340,294.12 0.13% 0.00 0.00% 0.13%
Operating division, product category or operating segment contributing over 10% of operating revenue or operating profit:
Applicable □ Not applicable
Unit: RMB
YoY change in YoY change in YoY change in
Operating Gross profit
Cost of sales operating cost of sales gross profit
revenue margin
revenue (%) (%) margin (%)
By operating division
Property sales 72,404,365.93 49,079,740.50 32.21% -68.30% -52.94% -22.13%
Engineering
and 149,278,954.13 146,071,686.99 2.15% 44.58% 44.62% -0.02%
construction
Rental service 35,655,793.46 18,005,836.85 49.50% 113.13% -4.71% 62.44%
Property
1,579,444.44 1,266,665.08 19.80% -85.74% -88.24% 17.03%
management
Other 8,634,903.49 2,805,497.41 67.51% 28.47% -42.94% 40.66%
By product category
Residential
71,997,900.22 48,682,064.04 32.38% -67.83% -51.52% -22.76%
units
Shops and
406,465.71 397,676.46 2.16% -91.12% -89.77% -12.86%
parking lots
Other 195,149,095.52 168,149,686.33 13.84% 41.64% 24.02% 12.25%
By operating segment
Guangdong
265,244,826.14 217,229,426.83 18.10% -16.69% 12.51% -21.26%
Province
Main business data of the most recent period restated according to changed statistical caliber for the Reporting period
□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
30 June 2023 31 December 2022 Reason for any
Change in
As a % of total As a % of total significant
Amount Amount percentage (%)
assets assets change
Monetary
182,290,539.13 3.34% 197,663,949.74 3.47% -0.13%
assets
Accounts
55,880,663.33 1.02% 63,580,422.16 1.12% -0.10%
receivable
4,239,904,684. 4,257,109,614. Development
Inventories 77.75% 74.82% 2.93%
21 31 of projects
Investment
554,694,578.33 10.17% 566,873,915.07 9.96% 0.21%
property
Long-term
equity 93,927.64 0.00% 93,927.64 0.00% 0.00%
investments
Fixed assets 20,677,375.65 0.38% 21,425,475.05 0.38% 0.00%
Right-of-use
166,069.10 0.00% 232,496.72 0.00% 0.00%
assets
16
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Short-term
45,050,727.80 0.83% 51,138,077.62 0.90% -0.07%
borrowings
Contract
34,256,336.95 0.63% 43,533,467.29 0.77% -0.14%
liabilities
Additional
Long-term
141,893,437.60 2.60% 54,261,000.00 0.95% 1.65% bank loan in the
borrowings
current period
Lease liabilities 12,377.36 0.00% 53,885.23 0.00% 0.00%
Accounts
398,857,036.04 7.31% 434,601,559.67 7.64% -0.33%
payable
Payment of
land VAT of
Donghu
Taxes payable 37,570,635.93 0.69% 190,951,185.99 3.36% -2.67%
Mingyuan in
the current
period
Other payables 555,065,599.75 10.18% 574,331,340.84 10.09% 0.09%
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 408,154,36 3,477,115.5 136,638,50 274,992,96
(excluding 1.42 6 8.21 8.77
derivative
financial
assets)
4.
Investment
13,839,235. 14,191,290.
s in other 352,055.06
equity 57 63
instruments
Total of the 421,993,59 3,477,115.5 136,638,50 289,184,25
352,055.06 0.00 0.00 0.00
above 6.99 6 8.21 9.40
Financial
0.00 0.00
liabilities
Other change
Significant changes to the measurement attributes of the major assets in the Reporting Period:
17
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
□Yes No
4. Restricted Asset Rights as at the Period-End
Item Ending carrying value Reasons
Project of public facilities inside and
surrounding the urban renewal project
Monetary assets 5,674,439.78
of Longgang District, Shenzhen-
construction funds
Lands mortgaged for project
Inventories 965,000,000.00
development loans
Monetary assets 388,115.74 Frozen in a lawsuit case
Accounts receivable 45,050,727.80 Put in pledge for short-term borrowings
Total 1,016,113,283.32
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
No such cases in this Reporting Period
18
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
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
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 1,491,957,6
Subsidiary nt of real 19,769,341. 0.00 4,072,785.2 4,072,785.2
(Huiyang) 0 25.03
estate 08 5 5
Industrial
Co., Ltd.
Shenzhen
SPG - -
Developme
Chuanqi 30,000,000. 1,138,192,0 992,339,17
Subsidiary nt of real 0.00 1,842,727.0 1,842,727.0
Real Estate 00 24.84 2.23
estate 1 1
Developme
nt Co., Ltd.
Shenzhen
SPG Developme
30,000,000. 107,426,97 58,461,951. 4,062,693.3
Longgang Subsidiary nt of real 548,923.64 859,592.64
Developme estate 00 3.70 25 6
nt Co., Ltd.
Shantou
SEZ,
Wellam - -
Developme
FTY, 91,226,120. 85,268,682. 35,546,282.
Subsidiary nt of real 176,190.48 54,758,534. 54,758,534.
Building 44 06 68
estate 76 76
Developme
nt, Co.,
Ltd.
Shantou
Huafeng Developme
80,000,000. 806,150,69 17,728,461. 54,475,318.
Real Estate Subsidiary nt of real 138,083.09 103,562.32
Developme estate 00 9.31 45 71
nt Co., Ltd.
Great Wall -
Rental 2,051,146.0 20,170,752. - -
Estate Co., Subsidiary 93,266,727. 340,294.12
Inc. (U.S.) services 0 91 142,447.83 142,447.83
89
Shenzhen
Zhentong 10,000,000. 282,567,89 20,620,413. 150,144,50
Subsidiary Installation 273,084.09 254,677.82
Engineerin 00 2.90 10 6.81
g Co., Ltd.
Shenzhen Rental 30,000,000. 44,040,875. 36,941,391. 7,685,132.3
Subsidiary 22,759.58 17,069.68
Petrel services 00 42 53 5
19
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Hotel Co., and
Ltd. property
manageme
nt
Shenzhen
Huazhan
Constructio
Constructio 8,000,000.0 9,993,923.7 9,655,166.6 - -
Subsidiary n 944,339.63
n 0 3 8 712,985.53 712,985.53
supervision
Supervisio
n Co., Ltd.
Investment - - -
Xin Feng
and 338,345,28
Enterprise Subsidiary 502,335.00 231,418,12 5,047,162.1 5,047,162.1
manageme 6.36
Co., Ltd. 7.59 2 2
nt
Subsidiaries obtained or disposed in the Reporting Period:
□Applicable Not applicable
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. The
Group has control over the project company, which will be included in the scope of consolidation in May 2021. As of 30 June
2023, eight residential buildings of Phase I have been capped, the basement of Phase II has been completed, the development of
Phase III and Phase IV are to be initiated, and construction permit has not been granted for the school. There were no sales in the
first half of 2023.
2. In October 2021, the Company won the bid for a land plot in Guangming District and established the project company Shenzhen
SPG Chuanqi Real Estate Development Co., Ltd. to be responsible for the development and construction of the land. In the first
half of 2023, actual investment totaled RMB55.61 million, which was mainly made in main construction.
3. The subordinate subsidiaries engaged in real estate development also include: Shenzhen SPG Longgang Development Co., Ltd.,
Shantou SEZ, Wellam FTY, Building Development, Co., Ltd., Shantou Huafeng Real Estate Development Co., Ltd. The
Cuilinyuan project developed by Shenzhen SPG Longgang Development Co., Ltd. recorded no sales in the first half of 2023.
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 open 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 74% for Phase I and 25% for Phase II.
4. Shenzhen Zhentong Engineering Co., Ltd. was engaged in the business of building installation and maintenance with the H1
2023 operating revenues of RMB150 million and of 56.96% to the operating revenues of the Company.
5. The H1 2023 net profit of Xin Feng Enterprise Co., Ltd. was of RMB-5.0472 million which mainly due to the changes of
exchange rate and it conducts no business.
6. The H1 2023 net profit of Shenzhen Petrel Hotel Co., Ltd. was of RMB17 thousand, representing a return to profitability, which
was mainly due to the fact that the market and business environment improved during the Reporting Period.
IX Structured Bodies Controlled by the Company
□Applicable Not applicable
X Risks Facing the Company and Countermeasures
(I) Macroeconomic risks and countermeasures
20
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
The real estate industry has a greater correlation with the macroeconomy and is more influenced by the
macroeconomic cycle. Currently, the foundation for sustained domestic economic recovery remains unsteady,
while the external environment grows increasingly complex and challenging, with global economic fluctuations
trending downward. The Company will continue to pay attention to the international and domestic
macroeconomic situation and actively adjust its business strategy.
(II) Industry development risks and countermeasures
During the Reporting Period, there was a decrease in the new construction area of real estate, while completed
area increased. Overall construction area declined. In the short term, real estate development investment will
continue to operate at a low level, and the real estate market remains in a phase of turbulent adjustment. The
Company will continue to deepen its research on industry policies, follow the national strategies, innovate its
operating model and optimize its development method.
(III) Business operating risks and countermeasures
In the first half of 2023, the sales prices of new commodity housing in cities decreased year-on-year. Product
destocking has slowed down, leading to compressed profit margins. The Company will pay close attention to
changes in markets and industry policies, 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.
21
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Part IV Corporate Governance
I Annual and Extraordinary General Meeting Convened during the Reporting Period
1. General Meetings Convened during the Reporting Period
Investor
Meeting Type Convened date Disclosure date Resolution of meeting
participation ratio
Resolutions of First
Extraordinary General
The First
Meeting in 2023 disclosed
Extraordina Extraordinary
on China Securities,
ry General General 62.31% 30 March 2023 31 March 2023
Securities Times, Ta Kung
Meeting in Meeting
Pao and
2023
www.cninfo.com.cn (No.:
2023-014)
Resolutions of 2022
Annual General Meeting
The 2022 disclosed on China
Annual Annual General
62.37% 28 April 2023 29 April 2023 Securities, Securities
General Meeting
Meeting Times, Ta Kung Pao and
www.cninfo.com.cn (No.:
2023-020)
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
Tang Xiaoping Chairman of the Board Elected 30 March 2023
Zhang Manhua Director Elected 30 March 2023
Wen Li Director Left office 30 March 2023
Lu Haiyan Supervisor Elected 28 March 2023
Feng Hongwei Supervisor Left office 28 March 2023
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.
22
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Part V Environmental and Social Responsibility
I Major Environmental Issues
Indicate by tick mark whether the Company or any of its subsidiaries is a heavily polluting business identified by the
environmental protection authorities of China.
□Yes No
Administrative penalties imposed for environmental 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 has diligently adhered to its mission awareness. It has firmly grasped the most
pressing and direct interests of the people, establishing a list of tangible projects that serve the welfare of the
people. 1. The Company has demonstrated care for families facing family planning difficulties within its
jurisdiction. It donated RMB30,000 to the Jiabei Community for the “Support for Family Planning and Care for
Families in Need” donation campaign, joining hands to provide care and support. 2. Collaborating with property
management companies, the Company has jointly built a safety line. It organised emergency evacuation drills
for commercial tenants in properties under its jurisdiction, enhancing public awareness of fire safety and
prevention. 3. The Company has invested in commissioning the natural gas transformation of gas pipelines in its
own old residential communities. It has strongly supported the government’s “tank-to-pipe” project to eliminate
safety hazards.
23
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Part VI Significant Events
I Commitments of the Company’s De Facto Controller, Shareholders, Related Parties and
Acquirers, as well as the Company Itself and Other Entities Fulfilled in the Reporting
Period or Ongoing at the Period-End
□Applicable Not applicable
No such cases in the Reporting Period.
II Occupation of the Company’s Capital by the Controlling Shareholder or any of Its
Related Parties for Non-Operating Purposes
□Applicable Not applicable
No such cases in the Reporting Period.
III Irregularities in the Provision of Guarantees
□Applicable Not applicable
No such cases in the Reporting Period.
IV Engagement and Disengagement of Independent Auditor
Are the interim financial statements audited?
□Yes No
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:
24
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Applicable □ Not applicable
Involved Index to
General Decisions and Execution of Disclosure
amount Provision Progress disclosed
information effects decisions date
(RMB’0,000) information
Xi’an Business
Tourism Company
Limited
(hereinafter
referred to as
“Business
Company”) had to Shaanxi High
pay for the People’s Court
compensation Sold all assets
RMB36.62 million of Business
and the relevant Company by
interest (from 14 auction in
September 1998 to accordance
the payment day) to with laws in
Xi’an Fresh Peak 2004. The
Company within applicant has
one month after the received Annual
judgment entering RMB15.20 Report 2022
into force. If the million. Now
Xi’an Project In Business Company 18 March (No.: 2023-
2,154 No Business
Lawsuit execution failed to pay in 2023 010) on
Company has
time, it had to pay no executable www.cninfo.
double debt properties and com.cn
interests to Xi’an Xi’an Joint
Fresh Peak Commission
Company for the on Commerce
overdue period; ② has been
Xi’an Joint refusing to
Commission on execute the
Commerce had ruling. It is
jointly and difficult to
severally obligation recover the
of the interests of rest.
the compensation; .
③ Business
Company shall bear
RMB227,500 of the
acceptance fee and
the security fee.
As Jianbang Group
is incapable of
paying the
commercial bills
due in January
2022, which total
SPG is
RMB177,151,400,
actively
Huizhou Annual
Judgment negotiating
Mingxiang Report 2022
was with Jianbang
Lawsuit of Economic 18 March (No.: 2023-
17,715.14 No rendered and the
bill dispute Information 2023 010) on
in the first plaintiffs for
Consulting Co., www.cninfo.
instance an all-
Ltd., Huizhou com.cn
inclusive
Huiyang Hongfa
solution.
Industry & Trade
Co., Ltd. and
Huizhou
Jinlongsheng
Industrial Co., Ltd.
brought a lawsuit
25
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
on the bill dispute
to the People’s
Court of Huiyang
District. The
Huiyang District
Court ruled at first
instance in March
2023 that Jianbang
should pay the
acceptance bill
amount and
interest.
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
26
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
The Company did not make deposits in, receive loans or credit from and was not involved in any other finance business with any
related finance company or any other related parties.
6. Transactions with Related Parties by Finance Companies Controlled by the Company
□Applicable Not applicable
The finance company controlled by the Company did not make deposits, receive loans or credit from and was not involved in any
other finance business with any related parties.
7. Other Major Related-Party Transactions
□Applicable Not applicable
No such cases in the Reporting Period.
XII Major Contracts and Execution thereof
1. Entrustment, Contracting and Leases
(1) Entrustment
□Applicable Not applicable
No such cases in the Reporting Period.
(2) Contracting
□Applicable Not applicable
No such cases in the Reporting Period.
(3) Leases
□Applicable Not applicable
No such cases in the Reporting Period.
2. Major Guarantees
Applicable □ Not applicable
Unit: RMB’0,000
Guarantees provided by the Company as the parent and its subsidiaries for external parties (exclusive of those for subsidiaries)
Disclosu
re date Guarante
Actual 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 Actual Counter Guarante
Line of Actual Type of Term of Having
re date guarante Collatera e for a
Obligor guarante occurren guarante guarante guarante expired
of the e l (if any) related
e ce date e e (if any) e or not
guarante amount party or
27
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
e line not
announc
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 9,929 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 9,929
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 9,929
Reporting Period Reporting Period
(B3) (B4)
Guarantees provided between subsidiaries
Disclosu
re date Guarante
Actual Counter
of the Line of Actual Type of Term of Having e for a
guarante Collatera
Obligor guarante guarante occurren guarante guarante guarante expired related
e l (if any)
e line e ce date e e (if any) e or not party or
amount
announc not
ement
Total guarantee amount (total of the three kinds of guarantees above)
Total guarantee line Total actual
approved in the guarantee amount in
50,000 9,929
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 9,929
end of the Reporting
Reporting Period
Period (A3+B3+C3)
(A4+B4+C4)
Total actual guarantee amount (A4+B4+C4)
2.54%
as % of the Company’s net assets
Of which:
Total of the three amounts above (D+E+F) 9,929
Compound guarantees
3. Cash Entrusted for Wealth Management
Applicable □ Not applicable
28
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Unit: RMB’0,000
Unrecovered
Unrecovered overdue amount
Type Funding source Amount Undue amount
overdue amount with provision for
impairment
Other Self-funded 39,015.11 27,499.3 0 0
Total 39,015.11 27,499.3 0 0
High-risk entrusted wealth management with significant single amount or low security and poor liquidity:
□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
(I) On 30 March 2023, the Company held the First Extraordinary General Meeting in 2023, at which the non-
independent directors and independent directors for the eighth Board of Directors and the non-employee
supervisors for the eighth Supervisory Committee were elected. Together with the employee supervisor who
was elected at a workers’ congress, they formed the new Board of Directors and Supervisory Committee. For
further information, see Announcement No. 2023-017 on the Re-election of the Board of Directors and the
Supervisory Committee dated 31 March 2023.
(II) In accordance with the provisions of the Articles of Association, "the legal representative of the Company
shall be the chairman of the board of directors of a company". The Company has completed the formalities for
the change of its registered corporate information on 17 April 2023, and the legal representative of the
Company has been changed from Mr. Liu Zhengyu to Mr. Tang Xiaoping.
XIV Significant Events of Subsidiaries
□Applicable Not applicable
29
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Part VII Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
Before Increase/decrease (+/-) in the current period After
Shares
Shares
as
as
dividend
Percenta New dividend Subtot Percenta
Shares converte Other Shares
ge (%) issues converte al ge (%)
d from
d from
capital
profit
reserves
1. Restricted shares 0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00%
1.1 Shares held by the
0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00%
state
1.2 Shares held by state-
0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00%
own legal person
1.3 Shares held by other
0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00%
domestic investors
Among which: shares
held by domestic legal 0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00%
person
Shares held by
0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00%
domestic natural person
1.4 Oversea
0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00%
shareholdings
Among which: shares
held by oversea legal 0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00%
person
Shares held by
0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00%
oversea natural person
1,011,66 100.00 1,011,660,
2. Unrestricted shares 0.00 0.00 0.00 0.00 0.00 100.00%
0,000.00 % 000.00
891,660, 891,660,0
2.1 RMB ordinary shares 88.14% 0.00 0.00 0.00 0.00 0.00 88.14%
000.00 00.00
2.2 Domestically listed 120,000, 120,000,0
11.86% 0.00 0.00 0.00 0.00 0.00 11.86%
foreign shares 000.00 00.00
2.3 Oversea listed
0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00%
foreign shares
2.4 Other 0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00%
1,011,66 100.00 1,011,660,
3. Total shares 0.00 0.00 0.00 0.00 0.00 100.00%
0,000.00 % 000.00
Reasons for share changes:
□Applicable Not applicable
Approval of share changes:
30
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
□Applicable Not applicable
Transfer of share ownership:
□Applicable Not applicable
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- 44,842 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
se/dec Restrict pledge,
Sharehold
Total ordinary rease ed Non-restricted marked or
Nature of ing
Name of shareholder shares held at in the ordinary ordinary frozen
shareholder percentag
the period-end Report shares shares held Sh
e Stat
ing held are
us
Period s
Shenzhen Investment State-owned
55.78% 564,353,838 564,353,838
Holdings Co., Ltd. corporation
Domestic
Shenzhen State-Owned
non-state-
Equity Operation and 6.35% 64,288,426 64,288,426
owned legal
Management Co., Ltd.
person
Domestic
Yang Jianmin natural 1.08% 10,972,077 10,972,077
person
Domestic
Zhang Xiujuan natural 0.47% 4,760,400 4,760,400
person
Domestic
Wang Yulan natural 0.44% 4,427,191 4,427,191
person
Domestic
Pan Jun natural 0.41% 4,160,000 4,160,000
person
31
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Domestic
He Qiao natural 0.40% 4,042,586 4,042,586
person
Hong Kong Securities Foreign
0.39% 3,946,675 3,946,675
Clearing Company Ltd. legal person
Domestic
Cao Benming natural 0.33% 3,356,800 3,356,800
person
Domestic
Wang Zhengying natural 0.29% 2,924,200 2,924,200
person
Strategic investor or general legal person becoming a
None
top-10 ordinary shareholder due to rights issue (if any)
Among the top 10 shareholders of the Company, Shenzhen State-owned
Equity Management Co., Ltd. is a wholly-owned subsidiary of
Shenzhen Investment Holdings Co., Ltd. The Company does not know
Related or acting-in-concert parties among the
whether there exists associated relationship among the other
shareholders above
shareholders, or whether they 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 entrusting/being entrusted with voting rights or None
waiving voting rights
Special account for share repurchases (if any) among
None
the top 10 shareholders
Top 10 unrestricted ordinary shareholders
Unrestricted ordinary shares held at the Shares by type
Name of shareholder
period-end Type Shares
Shenzhen Investment Holdings Co., RMB ordinary
564,353,838 564,353,838
Ltd. shares
Shenzhen State-Owned Equity RMB ordinary
64,288,426 64,288,426
Operation and Management Co., Ltd. shares
RMB ordinary
Yang Jianmin 10,972,077 10,972,077
shares
RMB ordinary
Zhang Xiujuan 4,760,400 4,760,400
shares
RMB ordinary
Wang Yulan 4,427,191 4,427,191
shares
RMB ordinary
Pan Jun 4,160,000 4,160,000
shares
RMB ordinary
3,889,900
shares
He Qiao 4,042,586 Domestically
listed foreign 152,686
shares
Hong Kong Securities Clearing RMB ordinary
3,946,675 3,946,675
Company Ltd. shares
RMB ordinary
Cao Benming 3,356,800 3,356,800
shares
RMB ordinary
Wang Zhengying 2,924,200 2,924,200
shares
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
unrestricted public shareholders and associated relationship among the other shareholders, or whether they are persons
top 10 shareholders acting in concert as prescribed in the Administrative Measures for the Acquisition of
Listed Companies.
Among the top 10 shareholders of the Company, the third, fourth, seventh, ninth and
Top 10 ordinary shareholders involved
10th shareholders held 9,804,200 shares, 4,760,400 shares, 3,732,000 shares, 3,351,800
in securities margin trading (if any)
shares, and 2,924,200 shares in their respective credit securities accounts.
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the
32
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
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)
Lu Superviso Incumben
0 200 0 200 0 0 0
Haiyan r t
Total -- -- 0 200 0 200 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.
33
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Part VIII Preference Shares
□Applicable Not applicable
No preference shares in the Reporting Period.
34
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Part IX Bonds
□Applicable Not applicable
35
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
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 2023
Presented in RMB
Item 30 June 2023 1 January 2023
Current assets:
Cash at bank and on hand 182,290,539.13 197,663,949.74
Provision of Settlement fund
Funds lent
Financial assets held for trading 274,992,968.77 408,154,361.42
Derivative financial assets
Notes receivable 1,536,150.00
Accounts receivable 55,880,663.33 63,580,422.16
Accounts receivable financing
Prepayments 762,828.19 1,163,612.24
Insurance premiums receivables
Cession premiums receivables
Provision of cession premiums
Other receivables 21,922,385.34 42,105,050.33
Including: Interest receivable
Dividends receivable
Recoursable Financial assets
acquired
Inventories 4,239,904,684.21 4,257,109,614.31
Contractual assets
Assets held for sale
Non-current assets due within one
year
Other current assets 38,594,239.68 36,778,641.42
Total current assets 4,814,348,308.65 5,008,091,801.62
Non-current assets:
36
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Loans and payments
Debt investment
Investments in other debt
obligations
Long-term receivables
Long-term equity investments 93,927.64 93,927.64
Investments in other equity
14,191,290.63 13,839,235.57
instrument
Other non-current financial assets
Investment property 554,694,578.33 566,873,915.07
Fixed assets 20,677,375.65 21,425,475.05
Construction in progress
Productive living assets
Oil and gas assets
Right-of-use assets 166,069.10 232,496.72
Intangible assets
Development costs
Goodwill
Long-term deffered expense 1,829,989.34 2,176,221.53
Deferred tax assets 47,180,201.16 77,036,728.98
Other non-current assets
Total non-current assets 638,833,431.85 681,678,000.56
Total assets 5,453,181,740.50 5,689,769,802.18
Current liabilities:
Short-term loans 45,050,727.80 51,138,077.62
Borrowings from central bank
Deposit funds
Financial liabilities held for
trading
Derivative financial liabilities
Notes payable
Accounts payable 398,857,036.04 434,601,559.67
Advances from customers 4,871,471.88 5,465,343.96
Contractual liabilities 34,256,336.95 43,533,467.29
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 26,107,904.96 35,724,203.78
Tax payable 37,570,635.93 190,951,185.99
Other payables 555,065,599.75 574,331,340.84
Including: Interest payable 16,535,277.94 16,535,277.94
Dividends payable
Handling charges and
commissions payable
Cession premiums payables
Liabilities held for sale
37
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Non-current liabilities due within
20,066,196.66 6,188,794.43
one year
Other current liabilities 2,844,613.84 3,882,817.68
Total current liabilities 1,124,690,523.81 1,345,816,791.26
Non-current liabilities:
Provision for insurance contracts
Long-term loans 141,893,437.60 54,261,000.00
Debentures payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 12,377.36 53,885.23
Long-term payables
Long-term employee benefits
payable
Provisions
Deferred income
Deferred tax liabilities 3,096,348.02 3,096,348.02
Other non-current liabilities
Total non-current liabilities 145,002,162.98 57,411,233.25
Total liabilities 1,269,692,686.79 1,403,228,024.51
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 24,153,998.68 25,926,720.85
Specific reserve
Surplus reserve 275,253,729.26 275,253,729.26
Generic Risk Reserve
Retained earnings 1,614,325,744.67 1,713,155,187.48
Total equity attributable to
3,903,638,382.72 4,004,240,547.70
shareholders of the company
Non-controlling interests 279,850,670.99 282,301,229.97
Total equity 4,183,489,053.71 4,286,541,777.67
Total liabilities and equity 5,453,181,740.50 5,689,769,802.18
Legal representative: Xiaoping Tang General Accountant：JianFei Wang The head of the accounting
department: Hongpu Zhou
2. Financial Position Statement of the Parent Entity
Presented in RMB
Item 30 June 2023 1 January 2023
Current assets:
Cash at bank and on hand 109,865,577.44 92,377,124.60
Financial assets held for trading 274,992,968.77 408,154,361.42
Derivative financial assets
Notes receivable
Accounts receivable 5,229,812.62 11,706,678.21
38
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Accounts receivable financing
Prepayments 200,000.00 200,000.00
Other receivables 1,736,355,470.74 1,711,880,332.45
Including: Interest receivable
Dividends receivable 34,222,722.88 39,222,722.88
Inventories 296,848.69 4,854,703.53
Contractual assets
Assets held for sale
Non-current assets due within one
year
Other current assets 1,360,584.56 1,138,065.43
Total current assets 2,128,301,262.82 2,230,311,265.64
Non-current assets:
Debt investment
Investments in other debt
obligations
Long-term receivables
Long-term equity investments 1,582,275,489.49 1,582,275,489.49
Investments in other equity
14,191,290.63 13,839,235.57
instruments
Other non-current financial assets
Investment property 444,517,161.22 455,917,024.15
Fixed assets 13,310,408.53 14,046,375.35
Construction in progress
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets
Development costs
Goodwill
Long-term deferred expense 1,218,574.62 1,381,401.99
Deferred tax assets 190,733.76 29,502,067.58
Other non-current assets
Total non-current assets 2,055,703,658.25 2,096,961,594.13
Total assets 4,184,004,921.07 4,327,272,859.77
Current liabilities:
Short-term loans
Financial liabilities held for
trading
Derivative financial liabilities
Notes payable
Accounts payable 11,573,238.42 17,666,752.61
Advances from customers
Contractual liabilities 88,985.71 184,985.71
Payroll payable 14,503,407.76 21,167,813.42
Tax payable 26,164,837.11 178,147,095.75
Other payables 178,966,190.10 184,614,308.51
Including: Interest payable 16,535,277.94 16,535,277.94
Dividends payable
Liabilities held for sale
Non-current liabilities due within
125,173.22 0.00
one year
39
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Other current liabilities 4,449.29 9,249.29
Total current liabilities 231,426,281.61 401,790,205.29
Non-current liabilities:
Long-term loans 62,461,437.60 0.00
Debentures payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee benefits
payable
Provisions
Deferred income
Deferred tax liabilities 3,096,348.02 3,096,348.02
Other non-current liabilities
Total non-current liabilities 65,557,785.62 3,096,348.02
Total liabilities 296,984,067.23 404,886,553.31
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 1,731,481.74 1,379,426.68
Specific reserve
Surplus reserve 252,124,115.85 252,124,115.85
Retained earnings 1,656,793,325.12 1,692,510,832.80
Total equity 3,887,020,853.84 3,922,386,306.46
Total liabilities and equity 4,184,004,921.07 4,327,272,859.77
3. Consolidated Statement of Profit or Loss and Other Comprehensive Income
Presented in RMB
Item 6 months ended 30 June 2023 6 months ended 30 June 2022
1. Revenue 263,616,779.07 366,184,498.90
Including: Operating revenue 263,616,779.07 366,184,498.90
Interest income
Insurance premium income
Handling charge and
commission income
2. Expenses 310,757,866.31 337,004,632.25
Including: operating expenses 217,229,426.83 239,885,272.72
Interest expense
Handling charge and
commission expense
Refund of Insurance premium
Net payment for insurance
claims
Net provision for insurance
contracts
Commissions on insurance
40
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
polices
Cession charges
Taxes and surcharges 61,896,867.56 56,981,582.00
Selling and distribution expense 8,790,640.18 10,726,031.33
General and administrative
23,453,199.45 33,013,300.52
expenses
Research and development
expense
Financial expense -612,267.71 -3,601,554.32
Including: Interest expense
Interest income 716,366.12 2,903,815.84
Add: Other income 123,732.31 400,232.43
Investment income (“-” for
1,806,314.48 166,815,177.24
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
3,477,115.56 4,963,730.62
(“-” for losses)
Credit impairment loss (“-” for
529,176.78 131,316.20
loss)
Impairment losses (“-” for
losses)
Gains from assets disposal (“-”
for losses)
3. Operating profit (“-” for loss) -41,204,748.11 201,490,323.14
Add: Non-operating income 17,476.72 552,207.24
Less: Non-operating expense 51,480.63 45,299.06
4. Profit before income tax (“-” for
-41,238,752.02 201,997,231.32
losses)
Less: Income tax expense -2,580,629.05 59,036,968.69
5. Net profit for the year (“-” for
-38,658,122.97 142,960,262.63
net losses)
5.1 Classification according to
operation continuity
5.1.1 Net profit from
continuing operations (“-” for net -38,658,122.97 142,960,262.63
loss)
5.1.2Net profit from
discontinued operations (“-” for net
loss)
5.2 Classification according to
attribute
5.2.1 Members of the parent
-37,118,182.81 145,128,330.14
shareholders ("-" for net loss)
41
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
5.2.2 Non-controlling
-1,539,940.16 -2,168,067.51
interests (“-” for net loss)
6. Other comprehensive income
-2,683,340.99 1,148,674.10
(net of tax)
Other comprehensive income
(net of tax) attributable to members -1,772,722.17 2,356,617.71
of the parent entity
6.1 Other comprehensive
income
352,055.06 5,175,152.79
items that will not be 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 352,055.06 5,175,152.79
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 -2,124,777.23 -2,818,535.08
or loss
6.2.1 Other comprehensive
income that can be transferred to
profit or loss under equity method
6.2.2 Changes in the fair value
of investments in other debt
obligations
6.2.3 Other comprehensive
income arising from the
reclassification of financial assets
6.2.4 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 -2,124,777.23 -2,818,535.08
currency financial statements
6.2.7 Other
Other comprehensive
income (net of tax) -910,618.82 -1,207,943.61
attributable to non-
42
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
controlling interests
7. Total comprehensive income for
-41,341,463.96 144,108,936.73
the period
Attributable to members of parent
-38,890,904.98 147,484,947.85
entity
Attributable to non-controlling
-2,450,558.98 -3,376,011.12
interests
8. Earnings per share
8.1 Basic earnings per share -0.0367 0.1435
8.2 Diluted earnings per share -0.0367 0.1435
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: Xiaoping Tang General Accountant：JianFei Wang The head of the accounting
department: Hongpu Zhou
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
2023 2022
1. Revenue 45,811,654.36 160,994,487.38
Less: Cost of sales 14,351,721.51 48,054,643.10
Taxes and surcharges 4,234,420.47 50,213,639.31
Selling and distribution expense 620,765.04 1,136,952.69
General and administrative
12,792,471.19 19,684,166.38
expenses
Research and development
expense
Financial expense -5,557,837.05 -8,916,021.09
Including: Interest expense
Interest income
Add: Other income 68,844.09 234,931.53
Investment income (“-” for
1,806,314.48 174,994,652.49
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
3,477,115.56 4,963,730.62
(“-” for losses)
Credit impairment loss (“-” for
-448,326.78 -78,105.19
loss)
Impairment losses (“-” for
losses)
Gains from assets disposal (“-”
43
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
for losses)
2. Operating profit (“-” for loss) 25,170,714.11 231,092,526.82
Add: Non-operating income 4,745.37 550,000.10
Less: Non-operating expense 50,894.08 0.00
3. Profit before income tax (“-” for
25,124,565.40 231,642,526.92
losses)
Less: Income tax expense -869,186.92 56,829,680.07
4. Net profit for the year (“-” for
25,993,752.32 174,812,846.85
net losses)
4.1 Net profit from continuing
25,993,752.32 174,812,846.85
operations (“-” for net loss)
4.2 Net profit from discontinued
operations (“-” for net losses)
5. Other comprehensive income,
352,055.06 0.00
net of tax
5.1 Other comprehensive
income
352,055.06
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
5.1.3 Changes in the fair
value of investments in other 352,055.06 0.00
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
44
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
5.2.6 Translation differences
arising from translation of foreign
currency financial statements
5.2.7 Other
6. Total comprehensive income for
26,345,807.38 174,812,846.85
the period
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
5. Consolidated Statement Of Cash Flows
Presented in RMB
Item 6 months ended 30 June 2023 6 months ended 30 June 2022
1. Cash flows from operating
activities:
Proceeds from sales of goods 164,207,230.02 229,484,917.15
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
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 1,186,861.59 126,578,042.71
Proceeds from other operating
74,221,616.32 74,351,558.97
activities
Sub-total of cash inflows 239,615,707.93 430,414,518.83
Payment for goods and services 60,457,437.30 195,347,145.81
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
45
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Payment to and for employees 36,762,506.08 51,050,768.33
Payments of various taxes 193,176,702.79 543,263,187.50
Payment for other operating
141,360,009.80 188,868,560.53
activities
Sub-total of cash outflows 431,756,655.97 978,529,662.17
Net cash flows from operating
-192,140,948.04 -548,115,143.34
activities
2. Cash flows from investing
activities:
Proceeds from disposal of
investments
Investment returns received 1,644,822.69 813,960.00
Net proceeds from disposal of
fixed assets, intangible assets and 4,269.60 2,907.50
other long-term assets
Net proceeds from disposal of
subsidiaries and other business 139,836,766.74
units
Proceeds from other investing
136,800,000.00 115,000,000.00
activities
Sub-total of cash inflows 138,449,092.29 255,653,634.24
Payment for acquisition of fixed
assets, intangible assets and other 251,357.46 126,730.24
long-term assets
Payment for acquisition of
investments
Net increase in pledged loans
Net payment for acquisition of
subsidiaries and other business
units
Payment for other investing
activities
Sub-total of cash outflows 251,357.46 126,730.24
Net cash flows from investing
138,197,734.83 255,526,904.00
activities
3. Cash flows from financing
activities:
Proceeds from investors
Including: Proceeds from non-
controlling shareholders of
subsidiaries
Proceeds from borrowings 101,586,610.82
Proceeds from other financing
activities
Sub-total of cash inflows 101,586,610.82
Repayments of borrowings
Payment for dividends, profit
63,399,744.75
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 63,399,744.75
Net cash flows from financing
38,186,866.07
activities
46
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
4. Effect of foreign exchange rate
changes on cash and cash 172,392.24 250,898.91
equivalents
5. Net increase in cash and cash
-15,583,954.90 -292,337,340.43
equivalents
Add: Cash and cash equivalents
190,365,069.48 612,293,635.15
as at the year beginning
6. Cash and cash equivalent as at
174,781,114.58 319,956,294.72
the year end
6. Cash Flow Statement of the Company as the Parent
Presented in RMB
Item 6 months ended 30 June 2023 6 months ended 30 June 2022
1. Cash flows from operating
activities:
Proceeds from sales of goods 55,240,004.34 29,085,968.85
Refund of taxes 1,143,272.60 76,602,710.88
Proceeds from other operating
40,177,648.86 187,691,251.29
activities
Sub-total of cash inflows 96,560,925.80 293,379,931.02
Payment for goods and services 2,806,232.29 11,660,146.24
Payment to and for employees 21,711,708.29 25,700,808.60
Payments of various taxes 132,822,106.11 490,780,774.26
Payment for other operating
51,390,420.56 32,302,748.93
activities
Sub-total of cash outflows 208,730,467.25 560,444,478.03
Net cash flows from operating
-112,169,541.45 -267,064,547.01
activities
2. Cash flows from investing
activities:
Proceeds from disposal of
investments
Investment returns received 6,644,822.69 813,960.00
Net proceeds from disposal of
fixed assets, intangible assets and 0.00 2,907.50
other long-term assets
Net proceeds from disposal of
subsidiaries and other business 0.00 177,009,030.00
units
Proceeds from other investing
136,800,000.00 206,413,737.42
activities
Sub-total of cash inflows 143,444,822.69 384,239,634.92
Payment for acquisition of
fixed assets, intangible assets and 213,690.10 78,576.00
other long-term assets
Payment for acquisition of
investments
Net payment for acquisition
of subsidiaries and other business
units
Payment for other investing
14,320,000.00 207,513,737.42
activities
Sub-total of cash outflows 14,533,690.10 207,592,313.42
Net cash flows from investing
128,911,132.59 176,647,321.50
activities
47
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
3. Cash flows from financing
activities:
Proceeds from investors
Proceeds from borrowings 62,586,610.82 0.00
Proceeds from other financing
activities
Sub-total of cash inflows 62,586,610.82 0.00
Repayments of borrowings
Payment for dividends, profit
61,711,260.00 0.00
distributions or interest
Payment for other financing
activities
Sub-total of cash outflows 61,711,260.00 0.00
Net cash flows from financing
875,350.82 0.00
activities
4. Effect of foreign exchange rate
changes on cash and cash 0.00 0.00
equivalents
5. Net increase in cash and cash
17,616,941.96 -90,417,225.51
equivalents
Add: Cash and cash
equivalents as at the year 90,800,999.60 297,680,168.50
beginning
6. Cash and cash equivalent as at
108,417,941.56 207,262,942.99
the year end
7. Consolidated Statement Of Changes in Equity
Presented in RMB
6 months ended 30 June 2023
Attributable to shareholders’ equity of the parent company
Other equity Oth No
instruments er Ge n-
Les
co neri Ret con Tot
Cap s: Spe Sur
Item Sha mpr c ain trol al
Pre Per ital trea cifi plu Sub
re ehe Ris ed Oth ling equ
fere pet rese sur c s tota
cap Oth nsi k ear er inte ity
nce ual rve y rese rese l
ital er ve Res nin rest
sha bon s sha rve rve
inc erv gs s
res d res
om e
e
1,0 1,7 4,0 4,2
978 25, 275 282
11, 13, 04, 86,
I. Balance ,24 926 ,25 ,30
660 155 240 541
at the end 4,9 ,72 3,7 1,2
,00 ,18 ,54 ,77
of last year 10. 0.8 29. 29.
0.0 7.4 7.7 7.6
11 5 26 97
0 8 0 7
Add:
Changes of
accounting
policies
Correction
of prior
period
48
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
errors
Business
combinatio
n involving
enterprises
under
common
control
Other
1,0 1,7 4,0 4,2
978 25, 275 282
II. Balance 11, 13, 04, 86,
,24 926 ,25 ,30
at the 660 155 240 541
4,9 ,72 3,7 1,2
Beginning ,00 ,18 ,54 ,77
10. 0.8 29. 29.
of the Year 0.0 7.4 7.7 7.6
11 5 26 97
0 8 0 7
III.
- - -
Changes in - -
98, 100 103
equity 1,7 2,4
829 ,60 ,05
during the 72, 50,
,44 2,1 2,7
year (“- 722 558
2.8 64. 23.
“for .17 .98
1 98 96
decrease)
- - -
- -
(I) Total 37, 38, 41,
1,7 2,4
comprehen 118 890 341
72, 50,
sive ,18 ,90 ,46
722 558
income 2.8 4.9 3.9
.17 .98
1 8 6
(II)
Shareholde
r’s
contributio
ns and
decrease of
capital
1.Contribut
ion by
ordinary
shareholder
s
2. Holders
of other
equity
instruments
invested
capital
3. Equity
settled
share-
based
payments
4．Other
(III) - - -
Appropriati 61, 61, 61,
on of 711 711 711
49
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
profits ,26 ,26 ,26
0.0 0.0 0.0
0 0 0
1.Appropri
ation for 0.0 0.0
surplus 0 0
reserves
2.Appropri
ation for 0.0 0.0
general 0 0
reserves
- - -
3.Distributi 61, 61, 61,
on to 711 711 711
shareholder ,26 ,26 ,26
s 0.0 0.0 0.0
0 0 0
4．Other
(IV)Transf
er 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
50
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
0.0
6．Other
0
(V) Special
Reserve
1.Appropri
ation
during the
year
2.Utilizatio
n during
the year
(VI) Others
1,0 1,6 3,9 4,1
978 24, 275 279
IV. Balance 11, 14, 03, 83,
,24 153 ,25 ,85
at the end 660 325 638 489
4,9 ,99 3,7 0,6
of the ,00 ,74 ,38 ,05
10. 8.6 29. 70.
period 0.0 4.6 2.7 3.7
11 8 26 99
0 7 2 1
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
co neri Ret con Tot
Cap s: Spe Sur
Item Sha mpr c ain trol al
Pre Per ital trea cifi plu Sub
re ehe Ris ed Oth ling equ
fere pet rese sur c s tota
cap Oth rve nsi k ear er inte ity
nce ual y rese rese l
ital er ve Res nin rest
sha bon s sha rve rve
inc erv gs s
res d res
om e
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
51
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Other
1,0 1,6 3,9 4,2
978 36, 241 289
II. Balance 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 in - 67, 58, - 55,
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)
145 147 - 144
(I) Total 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
shareholder
s
2. Holders
of other
equity
instruments
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
1.Appropri
ation for
general
reserves
3.Distributi - - -
52
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
on to 89, 89, 89,
shareholder 026 026 026
s ,08 ,08 ,08
0.0 0.0 0.0
0 0 0
4．Other
-
11,
11,
(IV)Transf 449
449
er 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 -
11,
sive 11,
449
income 449
,77
carried ,77
3.2
forward to 3.2
6
retained 6
earnings
6．Other
(V) Special
Reserve
1.
Appropriati
on during
the year
2.Utilizatio
n during
53
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
the year
(VI) Others
1,0 1,7 3,9 4,2
978 26, 241 285
IV. Balance 11, 38, 96, 82,
,24 995 ,14 ,69
at the end 660 673 719 412
4,9 ,80 4,8 2,8
of the ,00 ,58 ,15 ,02
10. 8.4 54. 66.
period 0.0 6.3 9.8 6.1
11 0 93 32
0 8 2 4
8. Consolidated Statement Of Changes in Equity Of The Parent Entity
Presented in RMB
6 months ended 30 June 2023
Other equity Other
Less:
instruments Capit comp Speci Surpl Retai
Item Share treas Total
Prefe Perpe al rehen fic us ned
capit ury Other equit
rence tual reser sive reser reser earni
al Other share y
share bond ves inco ve ve ngs
s
s s me
1,011 1,692 3,922
I. Balance 964,7 1,379 252,1
,660, ,510, ,386,
at the end 11,93 ,426. 24,11
000.0 832.8 306.4
of last year 1.13 68 5.85
0 0 6
Add:
Changes of
accounting
policies
Correction
of prior
period
errors
Other
II. Balance 1,011 1,692 3,922
964,7 1,379 252,1
at the ,660, ,510, ,386,
11,93 ,426. 24,11
Beginning 000.0 832.8 306.4
1.13 68 5.85
of the Year 0 0 6
III.
Changes in
- -
equity
352,0 35,71 35,36
during the
55.06 7,507 5,452
year (“-
.68 .62
“for
decrease)
(I) Total
25,99 26,34
comprehen 352,0
3,752 5,807
sive 55.06
.32 .38
income
(II)
Shareholde
r’s
contributio
ns and
decrease of
54
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
capital
1.Contribut
ion by
ordinary
shareholder
s
2. Holders
of other
equity
instruments
invested
capital
3. Equity
settled
share-
based
payments
4．Other
(III) - -
Appropriati 61,71 61,71
on of 1,260 1,260
profits .00 .00
1.Appropri
ation for
surplus
2.Distributi - -
on to 61,71 61,71
shareholder 1,260 1,260
s .00 .00
3．Other
(IV)Transf
er 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
55
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
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 1,656 3,887
964,7 1,731 252,1
at the end ,660, ,793, ,020,
11,93 ,481. 24,11
of the 000.0 325.1 853.8
1.13 74 5.85
period 0 2 4
Presented in RMB
6 months ended 30 June 2022
Other equity Other
Less:
instruments Capit comp Speci Surpl Retai
Item Share treas Total
Prefe Perpe al rehen fic us ned
capit ury Other equit
rence tual reser sive reser reser earni
al Other share y
share bond ves inco ve ve ngs
s
s s me
1,011 1,474 3,670
I. Balance 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 1,011 964,7 1,373 218,0 1,474 3,670
at the ,660, 11,93 ,954. 15,24 ,557, ,318,
Beginning 000.0 1.13 19 1.52 043.8 170.7
56
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
of the Year 0 6 0
III.
Changes in
equity 5,945 85,78 91,73
during the ,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
decrease of
capital
1.Contribut
ion by
ordinary
shareholder
s
2. Holders
of other
equity
instruments
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
shareholder 6,080 6,080
s .00 .00
3．Other
(IV)Transf
er within
equity
1.Share
capital
increased
by capital
reserves
57
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
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 1,560 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
III. Company information
1. Company’s profile
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
58
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
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 564,353,838 shares of the Company (55.78% 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.
2. These financial statements and notes to the financial statements were approved by the 8th Board of
Directors of the Group at the 4th Board meeting dated on 25 August 2023.
3. The scope of consolidated statements
For details, please refer to Note VIII “Changes in consolidation scope” and Note IX “Interests in other entities”.
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 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.
59
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
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.32 “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 2023
and the Group’s and the Company’s operating results and cash flows for the half-year ended 30 June 2023.
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
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
60
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
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 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
61
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
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.
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.
62
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
(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;
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.
63
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
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 or other comprehensive income according to the nature of non-monetary items.
(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
occurrence 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.
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
64
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
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.
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
65
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
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 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
66
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
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.
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. 36.
(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;
67
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
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 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.
Notes receivable, accounts receivable and contract assets
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.
68
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
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
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.
69
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
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;
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;
70
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
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
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.
71
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
11. Notes Receivable
Please refer to Notes V.10 Financial Instrument.
12. Accounts Receivable
Please refer to Notes V.10 Financial Instrument.
13. Accounts receivable financing
Please refer to Notes V.10 Financial Instrument.
14. Other receivables
Determination method and accounting treatment method of expected credit loss of other receivables
Please refer to Note V 10. financial instruments.
15. Inventories
(1) Classification
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) Measurement 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.
72
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Any excess of the cost over the net realisable value 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 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.
73
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
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
(1) Classification and measurement of non-current assets or disposal groups 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.
Above mentioned non-current assets do not include investment properties subsequently measured with the fair
value model, biological assets measured at fair value less costs to sell, assets arising from employee benefits,
financial assets, deferred tax assets and contractual rights under insurance contracts.
The disposal group is a group of assets to be disposed of, by sale or otherwise, together as a whole in a single
transaction, and liabilities directly associated with those assets that will be transferred in the transaction. In
certain circumstances, disposal groups include goodwill acquired in a business combination.
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. 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) continually.
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.
74
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
The Group measures a non-current asset that ceases to be classified as held for sale at the lower of:
① its carrying amount before the asset or disposal group was classified as held for sale, adjusted for any
depreciation, amortisation or impairment that would have been recognised had the asset or disposal group not
been classified as held for sale.
② its recoverable amount.
(2) Discontinued operations
The Group classifies a component as a discontinued operation either upon disposal of the operation or when the
operation meets the criteria to be classified as held for sale if it is separately identifiable and satisfies one of the
following conditions:
① It represents a separate major line of business or a separate geographical area of operations;
② It is part of a single co-ordinated plan to dispose of a separate major line of business or a separate
geographical area of operations;
③ It is a subsidiary acquired exclusively with a view to resale.
(3) Presentation
The Group presents a non-current asset classified as held for sale and the assets of a disposal group classified as
held for sale as ―Assets held for sale‖ in balance sheet. The liabilities of a disposal group classified as held for
sale is presented as ―Liabilities held for sale‖ in balance sheet.
The Group presents profit or loss from discontinued operations separately from profit or loss from continuing
operations in income statement. Impairment loss and reversal amount and any disposal gain or loss of a non-
current asset or disposal group classified as held for sale that does not meet the definition of a discontinued
operation is included in profit or loss from continuing operations. Any gain or loss from continuing operation of
discontinued operations, including impairment loss and reversal amount, and disposal gain or loss is included in
profit or loss from discontinued operations.
A disposal group which is planned to cease operation rather than for sale, and meets the criteria of a part of
discontinued operation, the Group presents it as discontinued operation from the date of cessation.
Where an operation is classified as discontinued in the current period, profit or loss from continuing operations
and profit or loss from discontinued operations are separately presented in the income statement for the current
period. If the Group ceases to classify a discontinued operation as held for sale, the information previously
presented in discontinued operations is reclassified and included in income from continuing operations for all
periods presented.
19. 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
75
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
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.
(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
76
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
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.
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. 26 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.26.
77
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
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.
21. 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
Depreciation Estimated useful Residual value Depreciation
Class
Method life (years) rate % rate %
straight-line
Plant and buildings 30 5 3.17%
depreciation
Motor vehicles straight-line
6 5 15.83%
depreciation
Electronic
straight-line
equipment and 5 5 19.00%
depreciation
others
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) Other
For the impairment of the fixed assets, please refer to Note V.26.
Useful lives, estimated residual values and depreciation methods are reviewed at least at each year-end. The
Group adjusts the useful lives of fixed assets if their expected useful lives are different with the original
estimates and adjusts the estimated net residual values if they are different from the original estimates.
When a fixed asset is disposed of, or when it is expected that no economic benefit will be generated through the
use or disposal, the fixed asset shall be derecognised. Proceeds from the disposal of fixed assets sold,
78
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
transferred, scrapped or damaged, net of their carrying amount and associated taxes, shall be recorded in the
profit or loss for the current period.
21. 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.26
23. 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;
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.
79
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
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.
24. 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 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.26 for the impairment test method of the right-of-use assets and the provision for
impairment.
25. 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.26 Impairment of Assets.
80
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
26. Impairment of long-term 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.
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.
27. 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.
28. 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.
81
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
29. 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
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.
(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.
82
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
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 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.
30. 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
83
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
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 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.
31. 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.
32. 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.
84
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
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. 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
85
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
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.
Differences in revenue recognition accounting policies for similar businesses due to different business models
33. 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
86
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
losses to be incurred in the future is recognised as deferred income, and included in profit or loss or offset
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 amount 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.
34. 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
87
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
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.
35. 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.24. For the accounting policy of lease liabilities,
please refer to Note V. 30.
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
88
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
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.
Change of lease
If the 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.
If the lease change is not accounted for as a separate lease, on the effective date of the lease change, the company
redistributes the consideration of the contract after the change and redetermines the lease term, the lease liability is
recalculated at the present value of the changed lease payment and the revised discount rate.
If the lease scope is reduced or the lease period is shortened as a result of the lease change, the company shall
adjust the book value of the right-to-use assets accordingly, and record the relevant gains or losses related to the
partial or complete termination of the lease in the current profit and loss.
If other lease changes result in lease liabilities being re-measured, the company shall adjust the book value of the
right-to-use assets accordingly.
(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
89
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
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
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.
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.
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.
36. 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
90
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
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.
37. Other significant accounting judgments and estimates
The Group conducts an ongoing evaluation of the significant accounting estimates and key assumptions used in
the light of historical experience and other factors, including reasonable expectations of future events. Important
accounting estimates and key assumptions that are likely to result in the risk of a material adjustment in the
carrying value of assets and liabilities during the next fiscal year are set out below:
Classification of financial assets
The Group's major judgments in determining the classification of financial assets include the analysis of
business models and contractual cash flow characteristics.
The Group determines the business model for the management of financial assets at the level of its financial
portfolio, taking into account factors such as the way in which the performance of financial assets is evaluated
and reported to key managers, the risks affecting the performance of financial assets and their management
methods, and the way in which managers of related businesses are remunerated.
When evaluating whether the contractual cash flow of financial assets is consistent with the basic lending
arrangement, the Group has the following main judgments: whether the time distribution or amount of the
principal in the duration period may change due to reasons such as prepayment; Does interest include only the
time value of money, credit risk, other fundamental borrowing risks, and consideration for costs and profits? For
example, does the prepayment amount only reflect the outstanding principal and interest based on the
outstanding principal and reasonable compensation for early termination of the contract.
Measurement of expected credit losses in accounts receivable
The Group calculates the expected credit loss of accounts receivable through the default risk exposure of
accounts receivable and the expected credit loss rate, and determines the expected credit loss rate based on the
default probability and the default loss rate. In determining the expected credit loss rate, the Group uses data
such as internal historical credit loss experience, and adjusts the historical data in combination with the current
situation and forward-looking information. When considering forward-looking information, the indicators used
by the Group include the risk of an economic downturn, changes in the external market environment, the
technological environment and customer conditions. The Group regularly monitors and reviews assumptions
relating to the calculation of expected credit losses.
Deferred tax assets
Deferred tax assets should be recognized for all unutilized tax losses to the extent that there is likely to be
sufficient taxable profit to offset the loss. This requires management to use a great deal of judgment to estimate
when and how much future taxable profits will occur, in combination with tax planning strategies, to determine
the amount of deferred tax assets that should be recognized.
The provision of land appreciation tax
The Group is subject to land appreciation tax (―LAT‖). The accrual of LAT is subject to management‘s
estimation which is made based on its understanding of the requirements of relevant tax laws and regulations.
However, the actual LAT is levied by tax authorities according to the interpretation of the tax rules. The group is
not stepping on formulating the final tax plan with relevant tax authorities, hence the final tax outcome could be
91
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
different from the amount that was initially recorded, and these differences will have an impact on tax provision
in current period.
Determination of fair value of unlisted equity investments
The fair value of an unlisted equity investment is the estimated future cash flows discounted at the current
discount rate for Items with similar terms and risk characteristics. This valuation requires the Group to estimate
expected future cash flows and the discount rate and is therefore subject to uncertainty. In limited circumstances,
if the information used to determine the fair value is insufficient, or if the possible estimates of the fair value are
spread over a wide range and the cost represents the best estimate of the fair value within that range, the cost
may represent the appropriate estimate of the fair value within that range.
38. Changes in significant accounting policies and accounting estimates
(1) Significant changes in accounting policies
□ Applicable √ Not Applicable
(2) Significant changes in accounting estimates
□ Applicable √ Not Applicable
(3) Adjustments to financial statement items at the beginning of the year of the first implementation of
the new accounting standards implemented since 2023
□ Applicable √ Not Applicable
39. Other
Maintenance fund
When the Group collects the maintenance fund from the owners according to a certain proportion of the sales
amount of commercial houses, it shall be included in other payables for accounting; When the collected
maintenance funds are handed over to the land and housing administrative departments in accordance with the
regulations, the maintenance funds collected on behalf of them shall be reduced.
Quality deposit
The Group shall keep the quality deposit in proportion to the payment period stipulated in the contract of civil
engineering and installation engineering, and deduct it from the civil engineering and installation Item payment,
which shall be classified as other payables. The maintenance expenses incurred due to quality during the
warranty period shall be directly charged under this item and liquidated after the warranty period.
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
92
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Corporate income tax Taxable profits 25%, 16.5%
It shall be levied on the basis of the
value-added value of the real estate
Four progressive rates of excess
Land appreciation tax transferred and the prescribed tax
rate: 30%, 40%, 50%, 60%
rate and paid in 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 treatment
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
Explanation for the VAT rate of different business activities:
With regards to revenue from property development, property management and construction activities, from
May 1st , 2016, the group‘s taxable items and tax rates are shown in the following table, which in accordance
with the relevant regulations of《Notice on Comprehensively Promoting the Trial of Replacing Business Tax
with Value-Added Tax》(No. 36 of CaiKuai [2016]):
Taxable income Means to calculate Tax Tax Rate%
Revenue from property sales Simplified Tax Method 5
Revenue from construction Simplified Tax Method 9, 3
Rental income Simplified Tax Method 5
Revenue from property 6
General Tax Method
management
VII. Notes to the consolidated financial statements
1. Cash at bank and Cash Equivalent
Presented in RMB
Item As at 30 June 2023 As at 1 January 2023
Cash in hand 13,721.59 4,549.61
Deposits with banks 154,829,181.66 163,083,275.13
Other monetary funds 27,447,635.88 34,576,125.00
Total 182,290,539.13 197,663,949.74
Including: Total overseas deposits 5,938,023.23 5,840,173.03
Total deposits with
restrictions on use due to 7,509,424.55 7,298,880.26
mortgage, pledge or freeze
93
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Other notes:
At the end of 30 June 2023, there were CNY 7,510,191.40 of restricted funds in the bank deposits, of which
CNY 388,115.74 were the funds frozen by the lawsuit and CNY 5,674,439.78 were the funds for the
construction of public facilities in and around the city of Longgang district. At the end of 30 June 2023, the
balance of other monetary funds of CNY 27,446,869.03 is seven-day notice deposit, including principal of CNY
26,000,000.00 and interest of CNY 1,446,869.03.
2. Trading financial assets
Presented in RMB
Item As at 30 June 2023 As at 1 January 2023
As at fair value through profit or
274,992,968.77 408,154,361.42
loss
Including:：
wealth management fund 274,992,968.77 408,154,361.42
Including:：
Total 274,992,968.77 408,154,361.42
Other notes:
3. Notes receivable
(1) Types of notes
Presented in RMB
Item As at 30 June 2023 As at 1 January 2023
Commercial acceptance bill 1,536,150.00
Total 1,536,150.00
Presented in RMB
As at 30 June 2023 As at 1 January 2023
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
Includi
ng：
Bad
debt
provisi
ons
1,617,0 100.00 80,850. 1,536,1
made 5.00%
00.00 % 00 50.00
on a
combin
ation
basis
Includi
ng：
1,617,0 100.00 80,850. 1,536,1
Total 5.00%
00.00 % 00 50.00
94
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Bad debt provisions made on a combination basis
Presented in RMB
As at 30 June 2023
Item
Book balance Bad debt provision Provision proportion
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
(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 2023 Provision Written-off Others 2023
reversals
commercial
acceptance 80,850.00 -80,850.00 0.00
bill
Total 80,850.00 -80,850.00 0.00
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 of Amount that is not derecognized at
Types
the period 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 1,536,150.00
Total 1,536,150.00
Other Note:
95
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
(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
Accounts
receivable
Approval
Name of the Nature of Written-off Reason for arising from
procedures
entity accounts amount written-off related party
performed
transactions(Y/
N)
Note:
4. Accounts receivable
(1) Types of accounts receivable
Presented in RMB
As at 30 June 2023 As at 1 January 2023
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
37,064, 32,348, 4,715,7 36,722, 32,006, 4,715,7
made 41.43% 87.28% 37.62% 87.16%
702.69 952.20 50.49 640.73 890.24 50.49
on an
individ
ual
basis
Includi
ng:
Bad
debt
provisi
ons
52,390, 1,225,8 51,164, 60,886, 2,021,5 58,864,
made 58.57% 2.34% 62.38% 3.32%
768.74 55.90 912.84 221.17 49.50 671.67
on a
combin
ation
basis
Includi
ng
Receiv
able
52,390, 1,225,8 51,164, 60,886, 2,021,5 58,864,
from 58.57% 2.34% 62.38% 3.32%
768.74 55.90 912.84 221.17 49.50 671.67
other
corpora
96
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
te
custom
ers
89,455, 100.00 33,574, 55,880, 97,608, 100.00 34,028, 63,580,
Total 37.53% 34.86%
471.43 % 808.10 663.33 861.90 % 439.74 422.16
Bad debt provisions made on an individual basis : 33574808.1
Presented in RMB
As at 30 June 2023
Item Provision
Book balance Bad debt provision Reason
percentage
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 10,376,052.81 10,376,052.81 100.00%
uncollectible
property sale
Shenzhen Hongteng
Investment recoverability is
11,789,376.23 7,073,625.74 60.00%
Management Co., relatively small
Ltd.
Accounts receivable Could be
from the revoked 2,314,755.46 2,314,755.46 100.00% uncollectible
subsidiary
Accounts receivable
Could be
from other 1,009,962.19 1,009,962.19 100.00%
uncollectible
customers
Total 37,064,702.69 32,348,952.20
Bad debt provision made on a combination basis: 1,225,855.90
Presented in RMB
As at 30 June 2023
Item
Book balance Bad debt provision Provision percentage
Other customers
52,390,768.74 1,225,855.90 2.34%
receivables
Total 52,390,768.74 1,225,855.90
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
Disclosure by Aging
Presented in RMB
Aging As at 30 June 2023
Within 1 year（include 1 year） 56,269,431.11
1 to 2 years 9,280,506.18
3 to 5 years 23,905,534.14
More than 5 years 23,905,534.14
Total 89,455,471.43
97
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
(2) Additions, recoveries or reversals of provision for the current period
Provision for the current period:
Presented in RMB
Amount changes in current period
As at 1 As at 30 June
Types Recoveries or
January 2023 Provision Written-off Others 2023
reversals
Bad debt 34,028,439.7 33,574,808.1
-440,326.78 13,304.86
provision 4 0
34,028,439.7 33,574,808.1
Total -440,326.78 13,304.86
4 0
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
Accounts
receivable
Nature of Approval
Name of the Written-off Reason for arising from
accounts procedures
entity amount written-off related party
receivable performed
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
Wuhan 2049 Poly Real
Estate Development Co., 18,362,798.27 20.53% 393,775.65
Ltd.
Wuhan Yutian Xingye
15,387,703.33 17.20% 549,760.09
Land Co., LTD
Shenzhen Hongteng
Investment Management 11,789,376.23 13.18% 7,073,625.74
Co., Ltd.
Wuhan Linhong Land
10,523,608.18 11.76% 241,396.87
Co., Ltd.
Jiangsu Huajian
Construction Co., Ltd. 8,693,261.25 9.72% 260,797.84
Shenzhen Branch
Total 64,756,747.26 72.39%
98
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
(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：
5. Prepayments
(1) The aging analysis of prepayments is as follows
Presented in RMB
As at 30 June 2023 As at 1 January 2023
Aging
Amount % Amount %
Within 1 year 234,279.60 30.71% 626,155.65 53.81%
1 to 2 years 237,765.60 31.17% 336,699.64 28.94%
2 to 3 years 206.95 0.02%
More than 3 years 290,782.99 6.83% 200,550.00 17.24%
Total 762,828.19 1,163,612.24
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 742,942.32 yuan,
which accounts for 97.39 % of the total ending balance of prepayments.
Other notes：
6. Other receivables
Presented in RMB
Item As at 30 June 2023 As at 1 January 2023
Other receivables 21,922,385.34 42,105,050.33
Total 21,922,385.34 42,105,050.33
（1）Interest receivable
1）Interest receivable classification
Presented in RMB
Item As at 30 June 2023 As at 1 January 2023
2）Significant overdue interest
Presented in RMB
Whether
Overdue time impairment occurs
Borrowing unit The ending balance Overdue reason
(month) and the basis for
judgment
99
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
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 2023 As at 1 January 2023
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 2023 Aging
units) retrieving and the basis for
judgment
3）Bad Debt Provisions
□ Applicable √ Not Applicable
Other notes：
（3）Other receivables
1）Other receivables disclosure by nature
Presented in RMB
Item Book balance as at 30 June 2023 Book balance as at 1 January 2023
Other receivables from employee’s
266,831.37 147,810.19
petty cash
Other receivables from the
768,208.38 689,317.63
collecting and paying on behalf
Other receivables from other
59,715,244.73 80,028,366.45
customers
Other receivables from related
154,600,573.04 156,470,188.49
parties
Total 215,350,857.52 237,335,682.76
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 1,524,758.92 193,705,873.51 195,230,632.43
100
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
January 2023
Balance as at 1
January 2023 in
current period
Return the current -8,000.00 -8,000.00
Other changes 808,813.28 1,001,346.97 1,810,160.25
Balance as at 30
723,945.64 192,704,526.54 193,428,472.18
June 2023
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 2023
Within 1 year (include 1 year) 41,623,990.70
1 to 2 years 6,583,028.71
2 to 3 years 13,300.00
3 to 4 years 167,130,538.11
More than 5 years 167,130,538.11
Total 215,350,857.52
3）Additions, recoveries or reversals of provision for the current period
Bad debt provisions in the current period
Presented in RMB
Amount changes in current period
As at 1 As at 30 June
Types Recoveries or
January 2023 Additions Written-off Others 2023
reversals
Other
receivables 195,230,632. 193,428,472.
-8,000.00 1,810,160.25
bad debt 43 18
provision
195,230,632. 193,428,472.
Total -8,000.00 1,810,160.25
43 18
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
Name of the Nature of other Amount of Verification and Whether the
Reason
entity receivable written-off cancellation payment is
101
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
procedures to be generated by an
performed affiliate
transaction
Note：
5）The top five units of ending balance of other receivables
Presented in RMB
Proportion of
Ending balance Ending balance
Name of the Nature of other total ending
of other Aging of bad debt
entity receivables balance of other
receivables provision
receivables (%)
Canada Great
Wall More than 5
current account 89,035,748.07 41.34% 89,035,748.07
(Vancouver) years
Co., Ltd
More than 5
Paklid Limited current account 19,506,273.32 9.06% 19,506,273.32
years
Australia
Bekaton More than 5
current account 12,559,290.58 5.83% 12,559,290.58
property years
Limited
Guangdong
province
More than 5
Huizhou Luofu current account 10,465,168.81 4.86% 10,465,168.81
years
Hill Mineral
Water Co.,Ltd
Xi’an Fresh
Peak Property More than 5
current account 8,419,205.19 3.91% 8,419,205.19
Trading Co., years
Ltd
Total 139,985,685.97 65.00% 139,985,685.97
6）Government subsidies receivable
Presented in RMB
Name of Estimated time,
Name of the
government subsidy The ending balance Aging amount and basis of
organization
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
Other notes:
7. Inventories
Does the Company need to comply with the disclosure requirements of real estate industry?
Yes
102
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
（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 2023 As at 1 January 2023
Provision for Provision for
impairment impairment
of of
inventories/p inventories/p
Item The book The book
Book balance rovision for Book balance rovision for
value value
impairment impairment
of contract of contract
performance performance
cost cost
Real estate
3,449,617,81 3,449,617,81 3,413,963,26 3,413,963,26
developing
0.46 0.46 1.85 1.85
cost
Real estate
790,009,176. 790,009,176. 842,847,684. 842,847,684.
developed
74 74 33 33
products
Raw
0.00 8,458.34 8,458.34
materials
Finished
316,588.92 38,891.91 277,697.01 329,101.70 38,891.91 290,209.79
goods
4,239,943,57 4,239,904,68 4,257,148,50 4,257,109,61
Total 38,891.91 38,891.91
6.12 4.21 6.22 4.31
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 As at Less: As at ative interes
ted “Real Increa Source
Startin for 1 Other 30 interes t
Item total estate se in s of
g time compl Januar reducti June t capital
invest develo this funds
etion y 2022 on 2022 capital ized in
ment ped period
ization the
produc
curren
ts
t
period
ShanT
ou
28,291 28,291
Fresh
,908.1 ,908.1 Other
Peak
1 1
Buildi
ng
Lin
30 2,290, 2,297, 33,278
Xin 6,218,
June 805,22 023,50 ,019.9 Other
Garde 275.18
2025 9.96 5.14 9
n
Guang 8 7 1,094, 29,436 1,124, 2,265, 1,609, Bank
103
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
mingli Februa Dece 866,12 ,273.4 302,39 037.89 531.95 loans,
ry mber 3.78 3 7.21 others
2022 2024
3,413, 35,654 3,449, 35,543
1,609,
Total 963,26 ,548.6 617,81 ,057.8
531.95
1.85 1 0.46 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 2023 capitalizati
2023 in the
on
current
period
Jinye
Island 16 Sep. 39,546,392 39,477,078
4,200.00
Multi-tier 1997 .27 .34
villa
Jinye
5,696,007. 5,696,007.
Island villa 2 Dec 2010 0.00
25 25
No.10
Jinye
20 Aug. 2,333,281. 2,333,281.
Island villa 0.00
2008 42 42
No.11
YueJing
18 Nov. 6,476,404. 6,357,945.
dongfang 118,459.23
2014 76 53
Project
HuangPu
140,000.00 140,000.00
XinCun
Beijing
Fresh Peak 304,557.05 304,557.05
Building
TianYue 15 Dec. 225,653,52 6,281,424. 219,372,09
Bay No.1 2017 2.83 21 8.62
Shenfang
8 May 45,617,437 19,908,371 25,709,066
CuiLin
2018 .79 .01 .78
Building
Chuanqi 4,289,919. 4,289,919.
8 Dec 2019 0.00
Donghu 17 17
TianYue 30 June 512,790,16 22,171,020 490,619,14
Bay No.2 2021 1.79 .04 1.75
842,847,68 52,769,193 790,009,17
Total 4,200.00
4.33 .66 6.74
The main items of "instalment on development products”, "leased development products”, “Revolving room”
are shown below:
Presented in RMB
As at 1 January
Item Increase Decrease As at 30 June 2023
2023
2）Provision for inventories and impairment of contract performance costs
The main items of provision for inventories are shown below:
104
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
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
（3）The ending balance of inventory contains the explanation of the capitalized amount of borrowing
expenses:
As at 30 June 2023, the Group's inventory balance contains capitalized borrowing costs at 35,543,057.88 yuan.
（4）Restriction on Inventories
Disclose restriction on Inventories by projects：
Presented in RMB
Name of project Opening balance Ending balance Reason of restriction
Land mortgaged for
Inventories 965,000,000.00 965,000,000.00 project development
loans
Total 965,000,000.00 965,000,000.00
8. Other current assets
Presented in RMB
Item As at 30 June 2023 As at 1 January 2023
Contract acquisition costs 1,397,895.00 1,212,848.49
Advance or prepaid income tax 789,501.68 1,692,386.28
Prepaid VAT 1,876,020.62 1,620,352.66
Pending deduct vat on purchase 30,787,643.44 29,247,467.16
Land Appreciation Tax 2,594,592.04 1,813,337.72
Business Tax 150,024.32 250,719.98
Others 998,562.58 941,529.13
Total 38,594,239.68 36,778,641.42
Other notes:
9. Long-term equity investments
Presented in RMB
Invest Openi Movements during the period Endin Balanc
105
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
ees ng Invest Declar g e of
balanc ment ed balanc provisi
e incom distrib Provis e on for
Other
(book e Adjust ution ion f (book impair
Increa Decre equity
value) recogn ment of or Other value) ment
se ase move
ised in OCI cash impair as
ments
under divide ment June
equity nds or 30
met ho profits 2023
1. Joint Venture
Guang
dong
provin
ce
Huizh
ou
9,969, 9,969, 9,969,
Luofu
206.09 206.09 206.09
Hill
Miner
al
Water
Co.,
Ltd
Fengk
ai
9,455, 9,455, 9,455,
Xinhu
465.38 465.38 465.38
a
Hotel
19,424 19,424 19,424
Subtot
,671.4 ,671.4 ,671.4
al
7 7 7
2. Associates
Shenz
hen
Rongh
1,170, 1,170, 1,076,
ua
882.28 882.28 954.64
JiDian
Co.,
ltd
Shenz
hen
Runhu
a
1,445, 1,445, 1,445,
Autom
425.56 425.56 425.56
obile
tradin
g Co.,
Ltd
Dongy
i Real 30,376 30,376 30,376
Estate ,084.8 ,084.8 ,084.8
Co., 9 9 9
Ltd
32,992 32,992 32,898
Subtot
,392.7 ,392.7 ,465.0
al
3 3 9
Total 52,417 52,417 52,323
106
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
,064.2 ,064.2 ,136.5
0 0 6
Other notes
10. Investments in other equity instrument
Presented in RMB
Item As at 30 June 2023 As at 1 January 2023
Shantou Small &Medium
Enterprises Financing Guarantee 14,191,290.63 13,839,235.57
Co., Ltd
Total 14,191,290.63 13,839,235.57
Itemized disclosure of investment in non-trading equity instruments for the current period
Presented in RMB
Reasons for
designating
The amount
Dividend fair value
of other
income measurement
The The comprehensi
recognized 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
Enterprises 5,550,600.00
Financing
Guarantee
Co., Ltd
Other notes:
11. 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
1,044,744,895.39 107,350,053.05 1,152,094,948.44
Dec. 2022
2. Additions during
3,779,432.13 3,779,432.13
the year
（1）Purchase
（2）Transfer from
Inventories\Fixed
assets\ construction
in progress
107
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
（3）Additions due
to business
combinations
（4）Others
(Exchange Rate 3,779,432.13 3,779,432.13
Changes)
3. Decrease during
the year
（1）Disposals
（2）Other
transfers out
4.Balance as at 30
1,044,744,895.39 111,129,485.18 1,155,874,380.57
June 2023
II. Accumulated
depreciation or
amortization
1. Balance as at 31
482,985,291.20 482,985,291.20
Dec. 2022
2. Charge for the
12,856,812.57 12,856,812.57
year
（1）Depreciated
12,856,812.57 12,856,812.57
or amortised
3. Reductions
during the year
（1）Disposals
（2）Other
transfers out
4.As at 30 June
495,842,103.77 495,842,103.77
2023
III. Provision for
impairment
1. Balance as at 31
14,128,544.62 88,107,197.55 102,235,742.17
Dec. 2022
2. Charge for the
3,101,956.30 3,101,956.30
year
(1) Provision
(2) Others
(Exchange Rate 3,101,956.30 3,101,956.30
Changes)
3. Reductions on
disposals
（1）Disposals
（2）Other
transfers out
4.As at 30 June
14,128,544.62 91,209,153.85 105,337,698.47
2023
IV. Carrying
amounts
108
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
1. As at 30 June
534,774,247.00 19,920,331.33 554,694,578.33
2023
2. As at 31 Dec
547,631,059.57 19,242,855.50 566,873,915.07
2022
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
Reasons
Rental Fair value Fair value
Time for Movemen and Index
Project building income in as at 31 as at 30
Location completio t in Fair for fair
name area reporting Dec. June
n value value
period 2022 2023
change
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
Reason why certificates are pendin
Item Carrying amount
g
Other notes
12. Fixed assets
Presented in RMB
Item As at 30 June 2023 As at 31 Dec. 2022
Fixed assets 20,677,375.65 21,425,475.05
Total 20,677,375.65 21,425,475.05
（1）Fixed assets
Presented in RMB
Electronic
Item Plant & buildings Motor vehicles equipment and Total
others
I．Cost：
1. Balance as at 31
100,422,074.10 8,307,455.41 7,403,998.70 116,133,528.21
Dec. 2022
2.Additions during 0.00 377,300.00 232,308.74 609,608.74
109
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
the year
(1) Purchases 0.00 377,300.00 232,308.74 609,608.74
(2) Transfers from
construction in
progress
(3) Additions due to
business
combinations
3. Decrease during
895,187.50 10,382.05 905,569.55
the year
(1) Disposals or
895,187.50 10,382.05 905,569.55
written-offs
4.As at 30 June
100,422,074.10 7,789,567.91 7,625,925.39 115,837,567.40
2023
II. Accumulated
depreciation
1. Balance as at 31
81,649,438.77 7,111,284.47 5,947,329.92 94,708,053.16
Dec. 2022
2. Charge for the
1,083,182.69 118,565.87 155,440.48 1,357,189.04
year
(1) Provision 1,083,182.69 118,565.87 155,440.48 1,357,189.04
3. Reductions for
895,187.50 9,862.95 905,050.45
the year
(1) Disposal or
895,187.50 9,862.95 905,050.45
written-offs
1. Balance as at
82,732,621.46 6,334,662.84 6,092,907.45 95,160,191.75
30 June 2023
III. Provision for
impairment
1. Balance as at 31
Dec. 2022
2. Charge for the
year
(1) Provision
3. Reductions for
the year
(1) Disposals or
written-offs
4． Balance As at
30 June 2023
IV. Carrying
amount
1. As at 30 June
17,689,452.64 1,454,905.07 1,533,017.94 20,677,375.65
2023
2. As at 31 Dec.
18,772,635.33 1,196,170.94 1,456,668.78 21,425,475.05
2022
110
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
（2）Temporarily idle fixed assets
Presented in RMB
Accumulated Provision for Carrying
Item Cost Note
depreciation impairment Amount
（3）Fixed assets leased out under operating leases
Presented in RMB
Item Carrying amount at the end of reporting period
（4）Fixed assets pending certificates of ownership
Presented in RMB
Reason why certificates of
Item Carrying amount
ownership are pending
Other notes
（5）Fixed assets to be disposed of
Presented in RMB
Item As at 30 June 2023 As at 31 Dec. 2022
Other notes:
13. Use rights assets
Presented in RMB
Item Plant & buildings Total
Ⅰ. Cost
1. Balance as at 31 Dec. 2022 431,779.61 431,779.61
2. Additions during the year
3. Decrease during the year
4.Balance as at 30 June 2023 431,779.61 431,779.61
II. Accumulated depreciation or
amortization
1. Balance as at 31 Dec. 2022 199,282.89 199,282.89
2. Charge for the year 66,427.64 66,427.64
(1)Depreciated or amortised 66,427.64 66,427.64
3. Reductions during the year
(1)Disposals
4.As at 30 June 2023 265,710.53 265,710.53
III. Provision for impairment
1. Balance as at 31 Dec. 2022
2. Charge for the year
(1) Provision
3. Reductions for the year
(1)Disposals
4.As at 30 June 2023
111
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
IV. Carrying amounts
1. As at 30 June 2023 166,069.08 166,069.08
2. As at 31 Dec 2022 232,496.72 232,496.72
Other notes：
14. Intangible assets
（1）Intangible assets
Presented in RMB
Land use Patent
Item Know-how Software Total
rights right
I.Cost
1. Balance as at 31 Dec.
2,192,000.00 2,192,000.00
2022
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 2023 2,192,000.00 2,192,000.00
II. Accumulative amortisation
1. Balance as at 31 Dec.
2,192,000.00 2,192,000.00
2022
2. Charge for the year
(1) Provision
3. Reductions for the year
(1) Disposals
4.As at 30 June 2023 2,192,000.00 2,192,000.00
III. Provision for impairment
1. Balance as at 31 Dec.
2022
2. Charge for the year
(1) Provision
3. Reductions for the year
(1) Disposals
4.As at 30 June 2023
IV. Carrying amount
1. As at 30 June 2023
2. As at 31 Dec. 2022
The carrying amount of intangible assets of the Group arising from internal development is 0.00% 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
Other notes
112
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
15. Long-term deferred expense
Presented in RMB
As at 1 Jan. Additions Amortisation Others As at 30 June
Item
2023 during the year for the year decreases 2023
Renovation
1,719,057.99 20,803.21 283,035.94 1,456,825.26
Costs
Others 457,163.54 83,999.46 373,164.08
Total 2,176,221.53 20,803.21 367,035.40 1,829,989.34
Other notes
16. 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 2023 As at 31 Dec. 2022
Item Deductible or Deductible or
Deferred tax assets Deferred tax assets
taxable temporary taxable temporary
Provisions for
impairment of 12,026,682.71 3,006,670.68 12,026,682.71 3,006,670.68
assets
Unrealised profits
of intra-group 83,966,762.00 20,991,690.50 86,124,778.41 21,531,194.60
transactions
Deductible tax
69,016,233.12 17,254,058.28 69,038,992.71 17,259,748.18
losses
Provision for land
appreciation tax 117,245,335.26 29,311,333.82
liquidation reserves
Accrued
23,711,126.84 5,927,781.70 23,711,126.84 5,927,781.70
Contractual cost
Total 188,720,804.67 47,180,201.16 308,146,915.93 77,036,728.98
（2）Deferred tax liabilities without offsetting
Presented in RMB
As at 30 June 2023 As at 31 Dec. 2022
Deductible or Deductible or
Item Deferred tax Deferred tax
taxable temporary taxable temporary
liabilities liabilities
differences differences
Changes in the fair
value of other
1,839,235.57 459,808.89 1,839,235.57 459,808.89
equity instrument
investments
Interest not due 1,576,125.00 394,031.25 1,576,125.00 394,031.25
Changes in fair
value of held-for-
8,970,031.50 2,242,507.88 8,970,031.50 2,242,507.88
trading financial
assets
Total 12,385,392.07 3,096,348.02 12,385,392.07 3,096,348.02
113
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
（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 2023 Dec. 2022
June 2023 Dec. 2022
Deferred tax assets 47,180,201.16 77,036,728.98
Deferred tax
3,096,348.02 3,096,348.02
liabilities
（4）Details of unrecognized deferred tax assets
Presented in RMB
Item As at 30 June 2023 As at 31 Dec. 2022
Deductible tax losses 49,941,635.58 54,027,120.82
Bad debt provision 197,543,730.87 197,543,730.87
Provision for impairment of long-
220,084,700.95 220,084,700.95
term equity
Provision for impairment of
102,235,742.17 102,235,742.17
investment real estate
Total 569,805,809.57 573,891,294.81
（5）Expiration of deductible tax losses for unrecognised deferred tax assets
Presented in RMB
Year As at 30 June 2023 As at 31 Dec. 2022 Note
2023 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 48,904,658.78 48,904,658.78
Total 49,941,635.58 54,027,120.82
Other note
17. Short-term loans
（1）Classification of short-term loans
Presented in RMB
Item As at 30 June 2023 As at 31 Dec. 2022
Pledge loans 45,050,727.80 51,138,077.62
Total 45,050,727.80 51,138,077.62
Note:
The ending balance of the loan consist of the factoring with accounts receivables.
（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:
114
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Presented in RMB
Interest rate if
Lender As at 30 June 2023 Interest rate Past due period
overdue
Other notes
18. Notes payable
Presented in RMB
Kind of Class Ending balance Opening balance
The total amount of notes payable due and unpaid at the end of the current period is RMB 220,898,556.87.
19. Accounts payable
（1）Accounts payable
Presented in RMB
Item As at 30 June 2023 As at 31 Dec. 2022
Construction 397,127,529.59 432,902,243.31
Others 1,729,506.45 1,699,316.36
Total 398,857,036.04 434,601,559.67
（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 2023
carry-forward
Other notes:
20. Advances from customers
（1）Advance payments
Presented in RMB
Item As at 30 June 2023 As at 31 Dec. 2022
Payment for goods-import and
4,218,370.69 4,218,370.69
export
Others 653,101.19 1,246,973.27
Total 4,871,471.88 5,465,343.96
（2）Important advances received over one year
Presented in RMB
Reasons for non-payment or non-
Item As at 30 June 2023
carry-forward
Other notes:
21. Contractual liabilities
Presented in RMB
115
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Item As at 30 June 2023 As at 31 Dec. 2022
Advance in house payment 34,155,928.57 43,431,327.09
Advance in room fee 100,408.38 102,140.20
Total 34,256,336.95 43,533,467.29
Changes in amount and reason for the change in reporting period:
Presented in RMB
Chang
es in
Item the Reason for change
amoun
t
Advan
ce in -
house 9,275, Real estate sales meet the income recognition conditions and carry forward income
payme 398.52
nt
-
Total 9,275,
398.52
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
As at 31 Dec. As at 30 June Estimated
Serial number Item Pre-sale ratio
2022 2023 completion time
22. Payroll payable
（1）Employee benefits payable
Presented in RMB
Accrued during the Decreased during
Item As at 31 Dec 2022 As at 30 June 2023
year the year
Short-term
35,672,352.37 25,379,314.03 34,995,612.73 26,056,053.67
employee benefits
Post-employment
benefits - defined 51,851.41 4,882,198.99 4,882,199.11 51,851.29
contribution plans
Total 35,724,203.78 30,261,513.02 39,877,811.84 26,107,904.96
（2）Short-term employee benefits
Presented in RMB
As at 31 Dec Accrued during Decreased during
Item As at 30 June 2023
2022 the year the year
1.Salaries, bonus,
35,211,378.77 18,382,586.31 27,665,932.85 25,928,032.23
allowances
2.Staff welfare 220,742.00 1,678,076.40 1,898,818.40 0.00
3.Social insurances 2,061,716.10 2,061,716.10 0.00
116
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Including: Medical
1,928,118.49 1,928,118.49 0.00
insurance
Work-related injury
30,931.54 30,931.54 0.00
insurance
Maternity insurance 102,666.07 102,666.07 0.00
4. Housing Fund 2,685,845.63 2,685,845.63 0.00
5. Labor union fees, staff
240,231.60 571,089.59 683,299.75 128,021.44
and workers’ education fee
Total 35,672,352.37 25,379,314.03 34,995,612.73 26,056,053.67
（3）Post-employment benefits - defined contribution plans
Presented in RMB
Accrued during the Decreased during
Item As at 31 Dec 2022 As at 30 June 2023
year the year
Basic pension
2,910,855.30 2,910,855.30 0.00
insurance
Unemployment
32,286.62 32,286.62 0.00
insurance
Annuity 51,851.41 1,939,057.07 1,939,057.19 51,851.29
Total 51,851.41 4,882,198.99 4,882,199.11 51,851.29
Other notes
23. Tax payable
Presented in RMB
Item As at 30 June 2023 As at 31 Dec 2022
Value-added tax 2,816,273.69 3,843,704.80
Corporate income tax 18,971,573.83 61,927,050.99
Individual income tax 603,654.85 1,611,643.13
City maintenance and construction
852,519.05 734,949.61
tax
Land appreciation tax 8,253,213.62 121,891,472.74
Property tax 4,982,103.54 287,141.98
Education surcharge 361,834.61 316,008.58
local education surcharge 241,223.07 197,568.44
Others 488,239.67 141,645.72
Total 37,570,635.93 190,951,185.99
Other notes
24. Other payables
Presented in RMB
Item As at 30 June 2023 As at 31 Dec 2022
Interest payables 16,535,277.94 16,535,277.94
Other payables 538,530,321.81 557,796,062.90
Total 555,065,599.75 574,331,340.84
（1）Interest payable
Presented in RMB
117
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Item As at 30 June 2023 As at 31 Dec 2022
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
Other notes:
The loan principal was paid in full on 22 Dec. 2016.
（2）Dividends payable
Presented in RMB
Item As at 30 June 2023 As at 31 Dec 2022
Reason for significant dividends not paid in 1 year:
（3）Other payables
1）Other payables (by nature)
Presented in RMB
Item As at 30 June 2023 As at 31 Dec 2022
Current account to Non-Related
160,011,335.42 166,065,259.07
parties
Current account to Related parties 230,698,698.75 232,502,015.42
Deposits 24,822,234.12 28,723,844.16
Others 122,998,053.52 130,504,944.25
Total 538,530,321.81 557,796,062.90
2）significant other payables aging over 1 year
Presented in RMB
Item As at 30 June 2023 Reason for no repayment
Guangzhou Bopi Enterprise Within 1 year, 1-2
203,265,265.50
Management Consulting Co., LTD years, 2-3 years
Huizhou Guirong Investment
1-2
Information 100,033,126.03
years
Consulting Co., LTD
Total 303,298,391.53
Other notes
25. Non-current liabilities due within one year
Presented in RMB
Item As at 30 June 2023 As at 31 Dec 2022
118
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Long-term borrowings due within
19,983,173.22 6,105,770.99
one year
Lease liabilities due within one
83,023.44 83,023.44
year
Total 20,066,196.66 6,188,794.43
Other notes:
26. Other current liabilities
Presented in RMB
Item As at 30 June 2023 As at 31 Dec 2022
Output tax to be transferred 2,844,613.84 2,265,817.68
Notes receivable that have been
endorsed but cannot be terminated 1,617,000.00
for recognition
Total 2,844,613.84 3,882,817.68
Movement in Short-term bonds payable：
Presented in RMB
Interest Amorti
As at is zation As at
Name The b The The
Face Releas issuanc 31 accrue of 30
of the ond de current current
value e date e Dec d at excess June
bond adline issue pay
2022 face discou 2023
value nt
Total
Other notes:
27. Long-term loans
（1）Long-term loans classification
Presented in RMB
Item As at 30 June 2023 As at 31 Dec 2022
Pledge loan 161,876,610.82 60,366,770.99
Less: long-term loans due within
-19,983,173.22 -6,105,770.99
one year
Total 141,893,437.60 54,261,000.00
Note:
Additional notes, including interest rate ranges:
The interest rate range is 3.70%-4.20%.
28. Lease liabilities
Presented in RMB
Item As at 30 June 2023 As at 31 Dec 2022
Buildings 95,400.80 136,908.67
Less: lease liabilities due within -83,023.44 -83,023.44
119
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
one year
Total 12,377.36 53,885.23
Other notes:
29. Share capital
Presented in RMB
Increase or decrease of current period (+, -)
Conversion
As at 31 As at 30
Stock from
Dec 2022 New shares Others Subtotal June 2023
dividend reserve to
shares
The total
1,011,660, 1,011,660,
number of
000.00 000.00
shares
Other notes:
30. Capital reserves
Presented in RMB
Increase in current The reduced in
Item As at 31 Dec 2022 As at 30 June 2023
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:
31. Other comprehensive income
Presented in RMB
Current amount
Less:
Less:
included
included
in other
in other
comprehe
comprehe
nsive
nsive
income in
The income in Attributa
the Attributa
current the Less: ble to As at 30
As at 31 previous ble to the
Item income previous Income minority June
Dec 2022 period parent
tax before period tax sharehold 2023
and company
the and expense ers after
transferre after tax
amount transferre tax
d to
d to profit
retained
or loss in
earnings
the
in the
current
current
period
period
I. Other
comprehe 1,379,426 352,055.0 352,055.0 1,731,481
nsive .68 6 6 .74
income
120
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
that
cannot be
reclassifie
d into
profits
and
losses
Changes
in the fair
value of
other
1,379,426 352,055.0 352,055.0 1,731,481
equity
.68 6 6 .74
instrumen
t
investme
nts
II.Other
comprehe
nsive
income - - -
24,547,29 22,422,51
which is 3,035,396 2,124,777 910,618.8
4.17 6.94
reclassifie .05 .23 2
d into
profit and
loss
Translatio
n
difference
s arising
from - - -
24,547,29 22,422,51
translatio 3,035,396 2,124,777 910,618.8
4.17 6.94
n of .05 .23 2
foreign
currency
financial
statement
s
- - -
25,926,72 24,153,99
Total 2,683,340 1,772,722 910,618.8
0.85 8.68
.99 .17 2
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:
32. Surplus reserve
Presented in RMB
Additions during Reductions during
Item As at 31 Dec 2022 As at 30 June 2023
the year the year
Statutory surplus
275,253,729.26 275,253,729.26
reserve
Total 275,253,729.26 275,253,729.26
Note:
121
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
33. Retained earnings
Presented in RMB
Item Year ended 30 June 2023 Year ended 30 June 2022
Before adjustment: Retained
earnings at the end of the previous 1,713,155,187.48 1,671,121,562.98
period
After adjustment: Retained
earnings at the beginning of the 1,713,155,187.48 1,671,121,562.98
reporting period
Plus:Net profits for the year
-37,118,182.81 153,718,805.57
attributable to owners of the Group
Less: Appropriation for statutory
34,108,874.33
surplus reserve
Dividends payable to ordinary
61,711,260.00 89,026,080.00
shares
Other -11,449,773.26
Retained earnings at the end of the
1,614,325,744.67
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.
34. Operation Income and Costs
Presented in RMB
Year ended 30 June 2023 Year ended 30 June 2022
Item
Income costs Income costs
Principal activities 260,483,681.12 216,130,758.55 364,450,882.21 238,944,330.95
Other operating
3,133,097.95 1,098,668.28 1,733,616.69 940,941.77
activities
Total 263,616,779.07 217,229,426.83 366,184,498.90 239,885,272.72
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
122
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
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 383,836,155.28 yuan, Among them, RMB
134,646,809.83 yuan is expected to be recognized as revenue in 2023, RMB 155,008,753.46 is expected to be
recognized as revenue in the year 2024, and RMB 51,532,342.89 yuan is expected to be recognized as revenue
in the year 2025 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 TianYue Bay No.2 33,679,147.75
2 TianYue Bay No.1 20,692,277.20
3 ChuanQi DongHu Building 14,830,961.90
4 Shenfang CuiLin Building 3,025,788.60
5 YueJing dongfang Project 176,190.48
35. Taxes and surcharges
Presented in RMB
Item Current amount Amount of previous period
Urban maintenance and
569,808.42 1,170,922.86
construction tax
Education surcharge 244,769.19 502,679.96
Property tax 797,547.13 4,650,644.11
Land use tax 271,394.26 322,273.95
Vehicle and vessel usage tax 840.00 2,040.00
Stamp duty 48,899.52 229,657.72
Land appreciation tax 59,792,949.35 49,721,941.06
Local education surcharge 162,868.57 337,561.61
Embankment protection fees 7,791.12 43,860.73
123
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Total 61,896,867.56 56,981,582.00
Other notes:
36. Selling and distribution expense
Presented in RMB
Item Current amount Amount of previous period
Employee benefits 1,571,290.26 2,722,521.43
Advertising expenses 2,202,118.31 1,366,337.04
Entertainment expenses 218,421.79 246,246.42
commissions 1,629,485.30 3,940,062.31
Others 3,169,324.52 2,450,864.13
Total 8,790,640.18 10,726,031.33
Other notes:
37. General and administrative expenses
Presented in RMB
Item Current amount Amount of previous period
Employee benefits 15,886,780.81 25,452,857.55
Depreciation 1,257,650.48 1,296,844.73
Entertainment expenses 848,919.03 1,181,431.41
Professional fee 1,008,889.63 932,733.24
Travel expense 65,435.94 21,150.06
Office expenses 648,239.75 826,098.42
Maintenance expenses 128,922.09 343,507.92
Utilities 137,684.88 164,773.58
Amortization 251,350.50 194,229.28
Others 3,219,326.34 2,599,674.33
Total 23,453,199.45 33,013,300.52
Other notes
38. Financial expense
Presented in RMB
Item Current amount Amount of previous period
Interest expense 1,609,531.95 89,286.77
Less: Interest income 716,366.12 2,903,815.84
Less: capitalized interest 1,609,531.95 89,286.77
Exchange losses/-gains 11,609.26 -811,005.72
Less: Exchange losses and gains
capitalized
Others 92,489.15 113,267.24
Total -612,267.71 -3,601,554.32
Other notes
39. Other Income
Presented in RMB
Item (Source of other income) Current amount Amount of previous period
VAT deduction 54,434.68 236,488.67
Subsidies for job-for-training 33,625.00
124
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Employment Support Subsidy 10,000.00
Stable Job Subsidy 932.80 123,118.76
Refund of procedure fee of
68,364.83
personal income tax
Total 123,732.31 403,232.43
40. Investment Income
Presented in RMB
Item Current amount Amount of previous period
Investment income from holding held-for-
161,491.79 159,619.01
trading financial assets
Dividend income from other equity
instrument investments during the holding 813,960.00
period
Debt Restructuring Proceeds 2,489,520.46
Disposal of subsidiaries 163,352,077.77
Other 1,644,822.69
Total 1,806,314.48 166,815,177.24
Other notes
41. Income from changes in fair value
Presented in RMB
The source of the fair value change
Current amount Amount of previous period
income
Trading financial assets 3,477,115.56 4,963,730.62
Total 3,477,115.56 4,963,730.62
Other notes:
The group purchased monetary fund since June 2021 and reached income from changes in fair value for the
Reporting Period of 3,477,115.56 yuan.
42. Credit impairment loss
Presented in RMB
Item Current amount Amount of previous period
Bad debt losses on other
8,000.00 -18,503.49
receivables
Reversal of impairment of
440,326.78 149,819.69
accounts receivable
Reversal of impairment of notes
80,850.00
receivable
Total 529,176.78 131,316.20
Other notes
43. Impairment loss of assets
Presented in RMB
Item Current amount Amount of previous period
Other notes:
125
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
44. 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 7,202.16 550,000.00 7,202.16
Others 10,274.56 2,207.24 10,274.56
Total 17,476.72 552,207.24 17,476.72
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 notes:
45. 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 0.00
exchange losses
Donations provided 30,000.00 43,357.00 30,000.00
Others 20,894.08 50.00 20,894.08
Total 51,480.63 45,299.06 50,894.08
Other notes:
46. 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 -29,856,527.82 59,036,968.69
Deferred tax expense 27,275,898.77
Total -2,580,629.05 59,036,968.69
（2）Reconciliation between income tax expenses and accounting profit is as follows:
Presented in RMB
Item Current amount
Profits/losses before tax -41,238,752.02
Expected income tax expenses at applicable tax rate -10,309,688.01
126
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Impact of different tax rates applied to certain
547,107.51
subsidiaries
Adjustment of income tax for the current period of the
4,439,887.46
previous period
Impact of tax-free income 1,320,857.51
Effect of non-deductible costs, expenses and losses 1,421,206.48
Income tax expenses -2,580,629.05
Other notes
47. Other comprehensive income
Refer to Note VII. 31 for details.
48. Cash Flow Statement
（1） Proceeds from operating activities
Presented in RMB
Item Current amount Amount of previous period
Interest income 451,599.51 2,805,382.05
Deposits and security deposits 910,167.70 244,977.70
Maintenance Fund 34,057.61 46,833.81
Collecting fee for certifications on
655,731.73 680,720.00
behalf
Others 72,170,059.77 70,573,645.41
Total 74,221,616.32 74,351,558.97
Note:
（2） Payment for other operating activities
Presented in RMB
Item Current amount Amount of previous period
Payment for general and
4,462,006.40 3,613,201.28
administrative expenses
Payment for selling and
4,028,948.96 2,931,332.85
distribution expenses
Deposits and security deposits 2,766,624.73 472,001.70
Paying fee for certifications on
585,125.55 17,696.81
behalf
Others 129,517,304.16 181,834,327.89
Total 141,360,009.80 188,868,560.53
Note:
（3） Proceeds from other investing activities
Presented in RMB
Item Current amount Amount of previous period
Purchase of monetary fund 136,800,000.00 115,000,000.00
Total 136,800,000.00 115,000,000.00
127
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Note:
（4） Payment for other investing activities
Presented in RMB
Item Current amount Amount of previous period
Note:
（5） Proceeds from other financing activities
Presented in RMB
Item Current amount Amount of previous period
Note:
（6） Payment for other financing activities
Presented in RMB
Item Current amount Amount of previous period
Note:
49. Supplementary information of the cash flow statement
（1） supplementary information of the cash flow statement
Presented in RMB
Amount of
Supplementary information Current amount
previous period
1. Adjust net profit to cash flow from operating activities:
Net profit -38,658,122.97 142,960,262.63
Add: Provisions for impairment of assets 529,176.78 131,316.20
Depreciation of Fixed Assets, Depreciation of Investment
Real Estate,
14,214,001.61 14,088,045.80
Depreciation of Oil and Gas Assets, Depreciation of
Productive Biological Assets
Depreciation of Right-of-use Assets 66,427.62 66,427.63
Amortization of intangible assets
Amortization of long-term deffered expenses 367,035.40 183,931.86
Loss on disposal of fixed assets, intangible assets and other
long-term assets (marked with "-" for gains)
Loss on the scrapping of fixed assets (marked with "-" for
-2,009.21 1,892.06
income)
Loss from changes in fair value (marked with "-" for earnings) -3,477,115.56 -4,963,730.62
Financial expenses (revenue marked with "-") 11,609.26 -811,005.72
Loss on investment (marked with "-" for income) -1,806,314.48 -166,815,177.24
Deferred tax assets decreased (marked with "-" for increase) -29,856,527.82 12,024,737.52
Deferred tax liability increased (marked with "-" for decrease) -2,984,434.17
Decrease in stock (marked with "-" for increase) -17,204,930.10 -35,445,828.25
Decrease of operating receivable items (marked with "-" for -28,003,759.61 -53,847,916.31
128
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
increase)
Increase in operational payable items (marked with "-" for
-88,320,418.96 -452,703,664.73
decrease)
Other
Net cash flow from operating activities -192,140,948.04 -548,115,143.34
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 174,781,114.58 319,956,294.72
Minus: Opening balance of cash 190,365,069.48 612,293,635.15
Plus: Ending balance of cash equivalents
Minus: Beginning balance of cash equivalents
Net increase in cash and cash equivalents -15,583,954.90 -292,337,340.43
（2） Composition of cash and cash equivalents
Presented in RMB
Item Ending balance Opening balance
Cash at bank and on hand 174,781,114.58 190,365,069.48
Cash and cash equivalents at 30
174,781,114.58 190,365,069.48
June 2023
Other notes:
50. Notes for items in the statement of changes in owners' equity
Notes to the name of “Other” of ending balance of the same period of last year adjusted and the amount
adjusted:
51. 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
Cash at bank and on hand 388,115.74 Litigation freeze
Accounts receivable 45,050,727.80 Short-term loan pledge
Total 1,016,113,283.32
Other notes:
129
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
52. Foreign currency monetary items
（1） Foreign currency monetary items
Presented in RMB
Ending Foreign Currency Balance converted into
Item Discount rate
Balance RMB at the end
Monetary fund
Including:US dollar 10,250.16 7.2098 73,901.60
The euro
Hong Kong
6,370,721.40 0.92048 5,864,121.63
dollars
Accounts receivable
Including:US dollar 24,483.34 7.2098 176,519.98
The euro
Hong Kong
4,905,150.10 0.92048 4,515,092.56
dollars
Long-term borrowing
Including:US dollar
The euro
Hong Kong
dollars
Other receivables
Including: Hong Kong
513,915.14 0.92048 473,048.61
dollars
Prepayments
Including: Hong Kong
253.12 0.92048 232.99
dollars
Accounts payable
Including: Hong Kong
2,000.00 0.92048 1,840.96
dollars
Other payables
Including:US dollar 11,781.17 7.2098 5,205,797.88
Other notes:
（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
53. Government subsidies
（1） Basic information of government subsidies
Presented in RMB
130
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Amount recorded in the
Sources Amount Listed items
current profit or loss
Tax subsidy 122,799.51 Other Income 122,799.51
Stable employment
932.80 Other Income 932.80
subsidy
（2） Refunding of the government subsidies
□ Applicable √ Not Applicable
Other notes:
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
Reporting Period
Presented in RMB
Income Net
of profits of
Recogniti
Time and acquiree acquiree
Cost of Proportio Way to on basis
Name of place of Purchase from the from the
gaining n of gain the of
acquiree gaining date purchase purchase
the equity equity equity purchase
the equity date to date to
date
period- period-
end end
Other notes:
（2） Acquisition cost and goodwill
Presented in RMB
Acquisition cost
--Cash
--Fair value of non-cash assets
--Fair value of debts issued or undertaken
--Fair value of equity securities issued
--Fair value of contingent consideration
--Fair value of equities held before the purchase date
on the purchase date
--Other
Total acquisition cost
Less: fair value of identifiable net assets acquired
The amount of goodwill/acquisition cost less than the
fair value share of identifiable net assets obtained
Note to determination method of the fair value of the acquisition cost, consideration and changes:
The main reasons for the formation of large-value goodwill:
Other notes:
131
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
（3） Identifiable assets and liabilities of the acquiree at the acquisition date
Presented in RMB
Fair value on purchase date Carrying value on purchase date
Assets:
Monetary assets
Accounts receivable
Inventories
Fixed assets
Intangible assets
Liabilities:
Borrowings
Accounts payable
Deferred income tax liabilities
Net assets
Less: Non-controlling interests
Net assets acquired
The determination method of the fair value of identifiable assets and liabilities:
Contingent liabilities of acquirees undertaken in the business combination:
Other notes:
（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
2. Business combinations involving enterprises under common control
（1） Business combinations involving enterprises under common control during the period
Presented in RMB
Net
Income Net
profits Income
from the profits of
from the of the
Recogniti period- the
period- acquiree
Proportio on basis begin to acquiree
Combine Combinat begin to during
n of the Basis of the during
d party ion date the the period
equity combinati combinati the period
combinati of
on date on date of of
on date of comparis
the comparis
the on
acquiree on
acquiree
Other notes:
132
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
（2） Combination cost
Presented in RMB
Combination cost
--Cash
--Carrying value of non-cash assets
--Carrying value of issued or assumed debts
--Carrying value of issued equity securities
--Contingent consideration
Contingent liabilities and changes thereof:
Other notes:
（3） Book value of merged party’s assets and liabilities in combination date
Presented in RMB
Combination date Period-end of the last period
Assets:
Monetary assets
Receivables
Inventories
Fixed assets
Intangible assets
Liabilities:
Loans
Payables
Net assets
Less: Non-controlling interests
Net assets acquired
Contingent liabilities of the combined party undertaken in the business combination:
Other notes:
3. Reverse buying
Basic information of trading, the basis of transactions constitutes counter purchase, the retain assets, liabilities
of the listed companies whether constituted a business and its basis, the determination of the combination costs,
the amount and calculation of adjusted rights and interests in accordance with the equity transaction process:
4. Disposal of subsidiaries
Whether subsidiaries reduced due to single disposal until loss of control
□ Yes √ No
Whether exists 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
Describe other changes in the consolidation scope (e.g., new subsidiaries, liquidation of subsidiaries, etc.) and
relevant situations:
133
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
6. Other
IX. Interest in other entities
1. Interests in subsidiaries
（1） Composition of the Group
Shareholding %
Principal Acquisition
Name of the Registration Business
place of method
Subsidiary place nature Direct Indirect
business
Shenzhen Acquiring
City SPG through
Real estate
Long Gang Shenzhen Shenzhen 95.00% 5.00% establishmen
development
Development t or
Ltd. investment
Acquiring
American through
Real estate
Great Wall U.S. U.S. 70.00% establishmen
development
Co., Ltd t or
investment
Acquiring
Shenzhen through
Hotel
Petrel Hotel Shenzhen Shenzhen 68.10% 31.90% establishmen
Services
Co. Ltd. t or
investment
Acquiring
Shenzhen
Installation through
Zhen Tung
Shenzhen Shenzhen and 73.00% 27.00% establishmen
Engineering
maintenance t or
Ltd.
investment
Shenzhen Acquiring
City We Gen through
Construction Shenzhen Shenzhen Supervision 75.00% 25.00% establishmen
Management t or
Ltd. investment
Shenzhen Mechanical Acquiring
Lain Hua & through
Industry and Shenzhen Shenzhen Electrical 95.00% 5.00% establishmen
Trading Co., device t or
Ltd. installation investment
Acquiring
Fresh Peak Hong Hong Investment through
Zhiye Co., and 100.00% establishmen
Ltd. Kong Kong management t or
investment
Acquiring
Xin Feng Hong Hong Investment
through
Enterprise and 100.00%
Kong Kong establishmen
Co., Ltd. management
t or
134
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
investment
Shenzhen Acquiring
City through
Commercial
Shenfang Shenzhen Shenzhen 95.00% 5.00% establishmen
trade
Free Trade t or
Trading Ltd. investment
Shenzhen Acquiring
City through
Shenfang Shenzhen Shenzhen Investment 90.00% 10.00% establishmen
Investment t or
Ltd. investment
Beijing
fresh
peak
Acquiring
property
through
develop
Beijing Beijing Real estate 75.00% 25.00% establishmen
ment
t or
manage
investment
ment
limited
company
Guangdong
Jianbang Acquiring
Group through
Huizhou Huizhou Real estate 51.00%
(Huiyang) business
Industrial acquisition
Co., Ltd.
Shenzhen Acquiring
Shenfang through
Chuanqi Real
Shenzhen Shenzhen Real estate 100.00% establishmen
Estate
t 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 notes:
① In consolidation scope, there are four subsidiaries in “revoked but not cancelled” condition: Beijing SPG
Property Management Limited, Guangzhou Huangpu Xizun real estate limited company, Fresh Peak Real
Estate Dev. 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.
②The cancelled, revoked and closed subsidiaries of the Company that are not included in the scope of
consolidation are as follows:
Name of the Subsidiary Principal Place of Business nature Shareholding Acquisition
135
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
place of registration proportion method
business
Direct Indirect
Acquiring
Shenzhen Shenfang Department through
Shenzhen Shenzhen Commercial trade 95.00 5.00
Store Co.Ltd establishment
or investment
Acquiring
Hong Hong through
Paklid Limited Commercial trade 60.00 40.00
Kong Kong establishment
or investment
Acquiring
through
Bekaton Property Limited Australia Australia Real estate 60.00 --
establishment
or investment
Acquiring
through
Canada Great Wall (Vancouver) Canada Canada Real estate -- 60.00
establishment
or investment
Acquiring
Guangdong Fengkai County through
Fengkai Fengkai
Lianfeng Cement Manufacturing Manufacturing -- 90.00
Guangdong Guangdong establishment
Co., Ltd.
or investment
Acquiring
Jiangmen Xinjiang Real Estate Co., Jiangmen Jiangmen through
Real estate -- 90.91
Ltd Guangdong Guangdong establishment
or investment
Acquiring
Xi’an Fresh Peak Property Trading Xi’an Xi’an through
Real estate -- 67.00
Co., Ltd Shanxi Shanxi establishment
or investment
Acquiring
Building through
Shenxi Limited Shenzhen Shenzhen 70.00 --
Decoration establishment
or investment
Acquiring
Shenzhen Zhentong New Mechanical and through
Electromechanical Industry Shenzhen Shenzhen electrical 95.00 5.00
establishment
Development Co., Ltd. engineering
or investment
Acquiring
Shenzhen Real Estate through
Electromechanical
Electromechanical Management Shenzhen Shenzhen 100.00 --
Management establishment
Company
or investment
Acquiring
Hotel through
Shenzhen Nanyang Hotel Co., Ltd. Shenzhen Shenzhen 95.00 5.00
Management establishment
or investment
Acquiring
Shenzhen Kangtailong Industrial Industrial through
Shenzhen Shenzhen -- 100.00
Electric Cooker Co., Ltd. manufacturing establishment
or investment
136
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Acquiring
Shenzhen Longgang Henggang Industrial through
Shenzhen Shenzhen -- 79.92
Huagang Industrial Co., Ltd. Investment establishment
or 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 Balance of non-
Profit or loss Dividend declared
ownership interest controlling interests
Name of the allocated to non- to non-controlling
held by non- as at
Subsidiary controlling interests shareholders during
controlling
during the year the year 2023.6.30
interests %
Great Wall Estate
30.00% -42,734.35 -22,331,144.86
Co., Inc
Fresh Peak
45.00% -258.69 -116,180,132.59
Investment Ltd
Barenie Co. Ltd. 20.00% -198.54 -3,892,312.98
Guangdong
Jianbang Group
49.00% -1,995,664.77 422,665,964.05
(Huiyang)
Industrial Co., Ltd.
Note to shareholding ratio of minority shareholder is different from the voting ratio:
Other notes:
137
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
（3） Key financial information about material non-wholly owned subsidiaries
Presented in RMB
As at 30 June 2023 As at 1 January 2023
Curre Non- Curre Non-
Non- Non-
Curre nt curre Total Curre curre Total
Name curre Total curre Total nt
nt nt liabili nt nt liabili
nt assets liabili nt assets liabili
assets liabili ties assets liabili ties
assets ties assets ties
ties ties
Great
Wall 19,92 20,17 113,4 113,4 19,24 19,40 109,4 109,4
250,4 157,2
Estate 0,331. 0,752. 37,48 0.00 37,48 2,855. 0,131. 89,01 89,01
21.58 76.13
Co., 33 91 0.80 0.80 50 63 5.64 5.64
Inc
Fresh
Peak 258,2 258,2 220,0 220,0 254,8 254,8
4,837. 36,01 40,85
Invest 19,01 0.00 19,01 30,11 30,11 31,54 31,54
87 6.90 4.77
ment 0.18 0.18 0.80 0.80 2.93 2.93
Ltd
Baren 32,92 32,92 32,92 32,92
1,077. 1,077. 1,046. 1,046.
ie Co. 2,013. 0.00 2,013. 0,988. 0,988.
88 88 02 02
Ltd. 48 48 91 91
Guan
gdong
Jianb
ang
Grou
1,486, 5,218, 1,491, 1,511, 1,511, 1,468, 5,502, 1,474, 1,489, 1,489,
p 12,37 53,88
739,1 484.4 957,6 714,5 726,9 798,4 260.7 300,7 943,3 997,2
(Huiy 7.36 5.23
40.61 2 25.03 88.75 66.11 61.17 8 21.95 92.55 77.78
ang)
Indust
rial
Co.,
Ltd.
Presented in RMB
Current amount Amount of previous period
Name of Cash Cash
Total Total
the flows flows
Subsidiar Operating comprehe Operating comprehe
Net profit from Net profit from
y income nsive income nsive
operating operating
income income
activities activities
Great
- - - - -
Wall 340,294.1 - 260,141.1
142,447.8 142,447.8 505,165.9 4,531,644 495,723.3
Estate 2 30,443.57 0
3 3 3 .62 9
Co., Inc
Fresh
Peak
-574.87 -574.87
Investme
nt Ltd
Barenie
-992.71 -992.71
Co. Ltd.
Guangdo
- - - - - -
ng
4,072,785 4,072,785 14,762,32 0.00 4,115,342 4,115,342 110,177,4
Jianbang
.25 .25 8.06 .31 .31 13.44
Group
138
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
(Huiyang
)
Industrial
Co., Ltd.
Other notes:
（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
Other notes:
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 owners of
the Group:
Presented in RMB
Purchase cost/disposal consideration
--Cash
--Fair value of non-cash assets
Total of purchase cost /disposal consideration
Less: Subsidiary net assets proportion calculated by
share proportion obtained/disposal
Difference
Of which: Adjustment of capital reserves
Surplus reserves adjustments
Retained profits adjustments
Other notes
3. Interests in joint ventures or associates
（1） Material joint ventures or associates
Shareholding percentage (%) Accounting
treatment of
Main the
Registration Nature of
Name operating investment to
place business Directly Indirectly
place joint venture
or associated
enterprise
Notes to holding proportion of joint venture or associated enterprise different from voting proportion:
Basis of holding less than 20% of the voting rights but has a significant impact or holding 20% or more voting
rights but does not have a significant impact:
139
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
（2） Key financial information of material joint ventures:
Presented in RMB
Ending balance/amount incurred in Opening balance/amount incurred
the reporting period in the previous period
Current assets
Of which: cash and cash
equivalents
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Equity of non-controlling interests
Equity attributable To shareholders
of the Company as the parent
Portion of net assets calculated
according to proportion of
shareholdings
Adjusted
-Goodwill
-Unrealized profits of internal
transactions
-Others
Carrying value of equity
investment to joint ventures
Fair value of equity investments of
joint ventures with public offer
Operating revenue
Finance expense
Income tax expense
Net profit
Net profit from discontinued
operations
Other comprehensive income
Total comprehensive income
Dividends received from joint
ventures in the Reporting Period
Other notes
（3） Key financial information of material associates:
Presented in RMB
Ending balance/amount incurred in Opening balance/amount incurred
the reporting period in the previous period
Current assets
140
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Equity of non-controlling interests
Equity attributable To shareholders
of the Company as the parent
Portion of net assets calculated
according to proportion of
shareholdings
Adjusted
-Goodwill
-Unrealized profits of internal
transactions
-Others
Carrying value of equity
investment to associated
enterprises
Fair value of equity investments of
associated enterprises with public
offer
Operating revenue
Net profit
Net profit from discontinued
operations
Other comprehensive income
Total comprehensive income
Dividends received from
associated enterprises in the
Reporting Period
Other notes
（4） Summarized financial information of immaterial joint ventures and associates:
Presented in RMB
Ending balance/amount incurred in Opening balance/amount incurred
the reporting period in the previous period
Joint ventures:
The total number of the following
items based on shareholding ratio
Associates:
Aggregate book value of
93,937.67 93,937.67
investments
The total number of the following
items based on shareholding ratio
-Net profits -178,240.64
Other notes
141
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
（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 the unrecognized
loss in prior periods reporting period loss as at 2023.6.30
Shenzhen Fresh Peak
2,217,955.89 2,217,955.89
property consultant Co., 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 2023, 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
Main operating Registration Nature of Proportion /Share portion
Name
place place business Directly Indirectly
Notes to holding proportion or share portion in common operation different from voting proportion:
For common operation as a single entity, basis of classifying as common operation:
Other notes
5. 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, notes payable, accounts payable, other
payables, short-term borrowing, lease liabilities. Details of the various financial instruments are disclosed in the
relevant notes. The risks associated with these financial instruments and the risk management policies 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
142
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
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
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.
143
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
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 72.39% of the
Group's total accounts receivable (in 2022: 56.87%); Among other receivables of the Group, other receivables
from the top five companies in arrears amount to 65.00% (in 2022：58.72%) 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 2023, the Group's unutilized bank loan amount is RMB 738.1234 million (31
December 2022: RMB 439.71 million).
At the end of the period, the maturity analysis of the 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 30 June 2023
Within one to five More than
Within one year Total
years five years
Financial liabilities:
Short-term loans 4,505.07 4,505.07
Accounts payable 39,885.7 39,885.7
Other payables 55,506.56 55,506.56
Non-current liabilities due
2,006.62 2,006.62
within one year
Long-term loans 14,189.34 14,189.34
Lease liabilities 1.24 1.24
Guarantees for client 38,038.27 38,038.27
Total financial liabilities and
139,942.22 14,190.58 154,132.80
contingent liabilities
144
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
At the beginning of the period, the maturity analysis of the 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 31 December 2022
Within one to five More than
Within one year Total
years five years
Financial liabilities
Short-term loans 5,113.81 5,113.81
Notes payable 42,478.79 42,478.79
Accounts payable 56,761.54 56,761.54
Interest payables 618.88 618.88
Other payables 5,426.10 5,426.10
Held-for-sale liabilities 5.39 5.39
Guarantees for client 40,158.39 40,158.39
Total financial liabilities and
150,562.90 150,562.90
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 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.
145
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Currency risk
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 2023, the Group's liability to asset ratio was 23.28% (31 December 2021: 24.66%).
XI. Fair Value
1. Items and amounts measured at fair value at the end of reporting period
Presented in RMB
As at 30 June 2023
Item The first level of The second level of The third level of
fair value fair value fair value Total
measurement measurement measurement
I.Recurring fair
-- -- -- --
value measurement
(1) Trading
274,992,968.77 274,992,968.77
financial assets
1. Financial assets
at fair value through 274,992,968.77 274,992,968.77
profit or loss
(3) Investments in
other equity 14,191,290.63 14,191,290.63
instrument
Total liabilities
measured at fair
274,992,968.77 14,191,290.63 289,184,259.40
value on a recurring
basis
146
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
II. Non-recurring
fair value -- -- -- --
measurements
2. Basis for determining the market price of the items measured based on the continuous and non -
continuous first level fair value
Level 1 inputs: 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
Level 2 inputs: inputs other than Level 1 inputs that are either directly or indirectly observable for underlying
assets or liabilities.
4. Items measured based on the continuous or uncontinuous 3rd level fair value, valuation technique as
used, nature of important parameters and quantitative information
Level 3 inputs: inputs that are unobservable for underlying assets or liabilities.
Ending fair Valuation The input value cannot Range
Item
value techniques be observed (weighted mean )
Equity instrument
investment
Non-listed equity Net asset Net assets in the book
14,191,290.63 /
investments method Liquidity discount
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
Fair value of financial assets and financial liabilities not measured at fair value
The financial assets and financial liabilities of the Group measured at amortized cost mainly
include monetary funds, notes receivable, accounts receivable, other receivables, short-term
borrowings, notes payable, accounts payable, other payables, etc.
147
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
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
Registration Registered Shareholding Percentage of
Name Business nature
place capital percentage % voting rights %
Shenzhen Investment, real
Shenzhen,
Investment estate
Guangdong 3,050,900.00 55.78% 55.78%
Holdings Co., development,
province
Ltd. guarantee
Note:
The ultimate controlling party of the Group is State-owned Assets Supervision and Management Commission of
Shenzhen Municipal People’s Government.
Other notes:
In the reporting period, the changes in the registered capital of the parent company are as follows:
Decreased
Opening balance Accrued during the year Ending balance
during the year
3,050,900.00 185,000.00 -- 3,235,900.00
2. Information about the subsidiaries of the Group
For information about the subsidiaries of the Group, refer to Note IX “1. 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
Other notes
4. Information on other related parties
Name Related party relationship
Shenzhen Jian an Group Co., Ltd. Both controlled by the parent company
Shenzhen Dongfang New world store Co., Ltd Participating stock companies
Not included in Consolidated Financial
Shenxi Limited Statements‘ Subsidiary that had been terminated its
licenses by law but not cancellation
Shenzhen Zhentong New Electromechanical Industry Not included in Consolidated Financial
148
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Development Co., Ltd. Statements‘ Subsidiary
(Long-term without operation)
Not included in Consolidated Financial
Shenzhen Nanyang Hotel Co., Ltd. Statements‘ Subsidiary that had been terminated its
licenses by law but not cancellation
Not included in Consolidated Financial
Shenzhen Real Estate Electromechanical Management
Statements‘ Subsidiary that had been terminated its
Company
licenses by law but not cancellation
Not included in Consolidated Financial
Shenzhen Longgang Henggang Huagang Industrial
Statements‘ Subsidiary that had been terminated its
Co., Ltd.
licenses by law but not cancellation
Guangzhou Bopi Enterprise Management Consulting
Shareholder of Guangdong Jianbang Group (Huiyang)
Co., Ltd.
Industrial Co., Ltd.
Directors, Supervisors, CFO and Board secretary Key management personnel
Shenzhen Property Management Co., Ltd. Both controlled by the parent company
Guoren Property and Casualty Insurance Co., Ltd. Both controlled by the parent company
Shenzhen Water Planning & Design Institute Co., Ltd. Both controlled by the parent company
Shenzhen General Institute of Architectural Design
Both controlled by the parent company
and Research Co., Ltd.
Other notes
5. Transactions with related parties
（1） Purchases/sales
Purchase of goods/receiving of services
Presented in RMB
Year ended Whether it Year ended
Approved
Related party Nature of exceeds the
2023.6.30 transaction limit 2022.6.30
transaction transaction limit
Design of
Shenzhen Water
foundation ditch
Planning &
for Shenfang 0.00 No 554,056.60
Design Institute
Guangmingli
Co., Ltd.
project,etc.
Shenzhen
Design of
General
Construction
Institute of
Engineering of
Architectural 0.00 No 763,773.58
Shenfang
Design and
Guangmingli
Research Co.,
Project
Ltd.
Guoren
Property and
Insurance
Casualty 80,263.00 No 4,134.00
Service
Insurance Co.,
Ltd.
Shenzhen
Property Property
352,967.09 No 100,579.23
Management Service
Co., Ltd.
Shenzhen
Shenfang Cleaning 22,924.56 No
Property service
149
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Cleaning Co.,
Ltd.
Shenzhen
Property
Management Property service 1,049,250.38 No
Co. , Ltd.
Shantou branch
Sales of goods/rendering of services
Presented in RMB
Related party Nature of transaction Year ended 2023.6.30 Year ended 2022.6.30
Guoren Property and
Casualty Insurance Co., Rental Service 421,519.98 421,519.98
Ltd.
Shenzhen Property
Rental Service 2,678,833.32 2,678,833.32
Management Co., Ltd.
Note:
（2） Trust/contracting arrangement
Asset management/contracting undertaken by the Group on behalf of related parties
Presented in RMB
Type of Inception Maturity date Trust/contrac Trust/contrac
Name of ting revenue
assets date of of ting revenue
Name of trustee/sub- recognized in
entrusted/con trust/contract trust/contract the reporting
related party contractor
tracted ing ing period
Asset management / contracting undertaken by related parties on behalf of the Group
Presented in RMB
Trust/contr
Type of Inception Maturity date acting
Trust/contrac revenue
Name of Name of assets date of of
ting revenue recognized
trustor/main related party entrusted/con trust/contract trust/contract
in the
contractor tracted ing ing reporting
period
Notes
（3） Leases
As the lessor
Presented in RMB
Lease income recognized Lease income recognized
Lessee Type of assets leased
in the reporting period in last period
Shenzhen Property
Building 421,519.98 421,519.98
Management Co., Ltd.
Guoren Property and
Casualty Insurance Co., Building 2,678,833.32 724,518.75
Ltd.
As the lessee
150
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Presented in RMB
Rental costs for Variable lease
simplified payments not
short-term included in the
leases and low measurement of Interest expense Increased right-
value asset Rent paid
lease liabilities on lease liability of-use assets
Type leases (if
of applicable) (if applicable)
Lesser
assets
leased
Amou Amou Amou Amou Amou
Curren Curren Curren Curren Curren
nt of nt of nt of nt of nt of
t t t t t
previo previo previo previo previo
amoun amoun amoun amoun amoun
us us us us us
t t t t t
period period period period period
Note:
（4） Guarantee
As the guarantor
Presented in RMB
Amount of Inception date of Maturity date of Guarantee expired
Guarantee holder
guarantee guarantee guarantee (Y/N)
As the guarantee holder
Presented in RMB
Amount of Inception date of Maturity date of Guarantee expired
Guarantor
guarantee guarantee guarantee (Y/N)
Note
（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 2023.6.30 Year ended 2022.6.30
（7） Remuneration of key management personnel
Presented in RMB
Item Year ended 2023.6.30 Year ended 2022.6.30
Remuneration of key management
2,521,369.00 2,902,600.00
personnel
151
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
（8） Other related party transactions
In order to encourage the core employees of the group to share the operating results of the market-oriented
projects with the company, share the operating risks, stimulate the endogenous motivation of improving
efficiency and increasing benefits, enhance the efficiency of asset management, and realize the preservation and
appreciation of the value of state-owned assets, the company has formulated the "Management Measures for
Investment From the Staff of Shenfang Group Linxi Jun Project". According to the above-mentioned
management measures, the related party transactions will form a joint investment with some directors,
supervisors and senior executives of the company. As of 30 June 2023, the company's directors, supervisors and
senior executives had invested a total of CNY 8.95 million.
6. Receivables from and payables to related parties
（1） Receivables from related parties
Presented in RMB
As at 30 June 2023 As at 1 January 2023
Item Related party Provision for Provision for
Book value bad and Book value bad and
doubtful debts doubtful debts
Shenzhen Fresh
Accounts Peak property
1,231,177.92 1,231,177.92 1,201,345.82 1,201,345.82
receivable consultant
Co., Ltd
Guangdong
Province
Other Huizhou Luofu 10,465,168.81 10,465,168.81 10,465,168.81 10,465,168.81
receivables Hill Mineral
Water Co., Ltd
Shenzhen
Runhua
Other Automobile 3,072,764.42 3,072,764.42 3,072,764.42 3,072,764.42
receivables Trading Co.,
Ltd
Canada
Other GreatWall
89,035,748.07 89,035,748.07 89,035,748.07 89,035,748.07
receivables (Vancouver)
Co., Ltd
Other Bekaton
Property 12,559,290.58 12,559,290.58 12,559,290.58 12,559,290.58
receivables
Limited
Other
Paklid Limited 19,506,273.32 19,506,273.32 18,689,545.58 18,870,785.54
receivables
Shenzhen
Other Shenfang
237,648.82 237,648.82 237,648.82 237,648.82
receivables Department
Store Co. Ltd
Shenzhen
Other
RongHua 475,223.46 475,223.46 475,223.46 475,223.46
receivables
JiDian Co., Ltd
152
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Xi’an Fresh
Peak property
Other management& 8,419,205.19 8,419,205.19 8,419,205.19 8,419,205.19
receivables 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
Nanyang Hotel 3,168,721.00 3,168,721.00 3,168,721.00 3,168,721.00
receivables
Co., Ltd.
（2） Payables to related parties
Presented in RMB
Item Related party As at 30 Jun 2023 As at 1 January 2023
Shenzhen Investment
Interest payables Shareholding Co. Ltd 16,535,277.94 16,535,277.94
Accounts payable Shenzhen Jian'an Group Co., Ltd. 9,154,310.21 10,654,310.21
Shenzhen Property Management
Accounts payable 11,053,366.80 11,053,366.80
Co. , Ltd.
Shenzhen Property Management
Other payables 48,908.08 148,908.08
Co., Ltd.
Shenzhen Dongfang New world
Other payables store Co., Ltd 902,974.64 902,974.64
Guangdong Fengkai County
Other payables Lianfeng Cement Manufacturing 1,867,348.00 1,867,348.00
Co., Ltd.
Shenzhen Real Estate
Other payables Electromechanical 14,981,420.99 14,981,420.99
Management Company
Shenzhen Zhentong New
Other payables 8,827,940.07 8,310,832.50
Electromechanical Industry
Shenzhen Shenfang Department
Other payables 639,360.38 639,360.38
Store Co. Ltd
Shenzhen Longgang Henggang
Other payables 165,481.09 165,481.09
Huagang Industrial Co., Ltd.
Guangzhou Bopi Enterprise
Other payables 203,265,265.50 203,345,881.60
Management Consulting 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
153
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
□ 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 2023, there exist significant commitments.
Capital commitments entered into but
not recognized in the financial 30 June 2023 31 December 2022
statements
Material sales or purchases contracts 321,823,819.24 328,654,477.52
As of June 30, 2023, the Group had no other commitments that should be disclosed.
2. Contingencies
（1） Significant contingencies existing on the balance sheet date
① Contingent liabilities arising from pending litigation and arbitration and their financial impact
Court of Amount Progress of
Plaintiff Defendant Case
Appeal involved cases
Xi’an Fresh Peak Xi'an Commercial and Investment Shanxi Higher 36.62 million In progress
Holding limited Trade Commission Xi'an compensation People’s Court yuan and
company Commerce and Tourism disputes interest
Co., Ltd.
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 judgment
“(2000) SJ-CZ No.25”. The judgment 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
154
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Company. 2. Xi’an Joint Commission on Commerce had jointly and severally obligation of the interests of the
compensation.
In 2004, the Shaanxi Provincial High Court auctioned off all the assets of the company in accordance with the
law through multiple execution with the applicant receiving 15.201 million yuan in payment. Now there is no
property available for execution for Commerce and Tourism Company. But Xi'an Municipal Bureau of
Commerce has been refusing to fulfill the judgment, and it is more difficult to continue to recover the money.
The case is now in the execution stage.
As at 30 June 2023, 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.
Court of Progress
Plaintiff Defendant Case Amount involved
Appeal of cases
Huizhou Mingxiang
Economic
Information
The verdict
Consulting Co., Ltd., Huiyang
Guangdong The principal has been
Huizhou Huiyang Bill dispute District
Jianbang Group amount is CNY rendered in
Hongfa Industry and litigation People's
(Huiyang) 177,151,400 the first
Trade Co., Ltd., Court
Industrial Co., instance
Huizhou
Ltd.
Jinlongsheng
Industrial Co., Ltd.
Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd. （ hereinafter referred to as "Jianbang
Company"） is a subsidiary of the Group holding 51% of the shares. Because Jianbang Company was
unable to honor the commercial acceptance bill due in January 2022, with a total amount of CNY
177,151,400.00, the plaintiff company filed a lawsuit against the Huiyang District People's Court for the
dispute of bill payment claim. The Huiyang District Court ruled in March 2023 that Guangdong Jianbang
Group (Huiyang) Industrial Co., Ltd. should pay the promissory note amount and interest in the first
instance. Shenfang Group and Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd. are actively
negotiating a package solution with the plaintiff.
② Contingent liabilities arising from guarantee provided to other entities and related financial effects.
As at 30 June 2023, the Group provides commercial housing purchaser with guarantees at 38,038.27 ((RMB in
ten thousand) for the following loans:
Amount (In ten
Item Duration Note
thousand)
Until the Premises Permit mortgage
Shanglinyuan 49.35
registration is finished and in bank custody
Shenfang Until the Premises Permit mortgage
2,148.92
Cuilinyuan registration is finished and in bank custody
ChuanQi
DongHu
Until the Premises Permit mortgage
Building registration is finished and in bank custody 1,229.46
(Former
DongHuDiJing
155
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Building)
Until the Premises Permit mortgage
TianYue Bay 33,640.55
registration is finished and in bank custody
Until the Premises Permit mortgage
Linxinyuan 970.00
registration is finished and in bank custody
Total 38,038.27
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.
（2） It is necessary to explain if the group has no material contingencies to be disclosed.
There is no material contingencies to be disclosed.
3. Other
XV. Post balance sheet date events
1. Significant non-adjustment matters
Presented in RMB
Influence number to the Reason of inability to
Item Contents financial position and estimate influence
operating results number
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 amount
errors the comparable period
（2） Prospective method
Reason for using prospective
Details of correction of errors Approval procedure
method
156
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
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
Presented in RMB
Profit from
discontinued
operations
Profit before Income tax
Item Revenue Costs Net profit attributable
taxation expenses
to owners of
the Company
as the parent
Other notes
6. Segment reporting
（1） The basis for determining the reporting segments and accounting policy
（2） Financial information of the reporting segments
Presented in RMB
Item Offset among segment Total
（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 notes
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
Item As at 30 June 2023 As at 1 January 2023
157
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Bad debt Bad debt
Book balance Book balance
provision provision
Provisi Book Provisi Book
Amoun Proport Amoun on value Amoun Proport Amoun on value
t ion t proport t ion t proport
ion ion
Bad
debt
provisi
ons
made 9,653,5 9,653,5 100.00 10,020, 10,020, 100.00
63.67% 0.00 45.38%
on an 66.27 66.27 % 587.91 587.91 %
individ
ual
basis
Includi
ng：
Bad
debt
provisi
ons
5,509,3 279,53 5,229,8 12,059, 352,84 11,706,
made 36.33% 5.07% 54.62% 2.93%
50.65 8.03 12.62 521.38 3.17 678.21
on a
combin
ation
basis
Includi
ng：
Accoun
ts
receiva
ble
from
32,453. 32,453. 5,002,6 5,002,6 5,002,6
related 0.21% 22.66%
79 79 57.79 57.79% 57.79
parties
in
consoli
dated
scope
Accoun
ts
receiva
ble 5,476,8 273,84 5,203,0 7,056,8 352,84 6,704,0
36.12% 5.00% 31.96% 5.00%
from 96.86 4.84 52.02 63.59 3.17 20.42
other
custom
ers
15,162, 100.00 9,933,1 5,229,8 22,080, 100.00 10,373, 11,706,
Total 65.51% 46.98%
916.92 % 04.30 12.62 109.29 % 431.08 678.21
Bad debt provisions made on an individual basis:
Presented in RMB
As at 30 June 2023
Item
Book balance Bad debt provision Percentage of Reason for accrual
158
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
provision
long-term accounts
Expected to be
receivable from 9,677,610.54 9,677,610.54 100.00%
uncollectable
property sales
Total 9,677,610.54 9,677,610.54
Bad debt provisions made on a combination basis:
Presented in RMB
As at 30 June 2023
Item
Book balance Bad debt provision Percentage of provision
Accounts receivable from
related parties in 32,453.79
consolidated scope
Total 32,453.79
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 2023
Item
Book balance Bad debt provision Percentage of provision
Accounts receivable from
5,476,896.86 279,538.03 5.10%
other customers
Total 5,476,896.86 279,538.03
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 2023
Within 1 year (with 1 year inclusive) 5,509,350.65
Above 3 year 9,653,566.27
Above 5 year 9,653,566.27
Total 15,162,916.92
（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
Types January June
Recoveries or
2023 Provision Written-off Others
reversals 2023
Including: significant recoveries or reversals of bad debt provisions in the current period are as follows：
159
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Presented in RMB
Name of the entity Recoveries or reversals amount Recovery manner
（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
Accounts
receivable
Nature of Approval
Name of the Written-off Reason written- arising from
accounts procedures
entity amount off related party
receivable performed
transactions(Y/
N)
Notes:
（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 balance of accounts
The ending balance The ending balance
receivable
（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
Other notes:
2. Other receivables
Presented in RMB
Item As at 30 June 2023 As at 1 January 2023
Dividends receivable 34,222,722.88 39,222,722.88
Other receivables 1,702,132,747.86 1,672,657,609.57
Total 1,736,355,470.74 1,711,880,332.45
（1） Interest receivable
1） Classification of interest receivable
Presented in RMB
Item As at 30 June 2023 As at 1 January 2023
160
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
2） Significant overdue interest
Presented in RMB
Whether
Overdue time impairment occurs
Borrowing unit The ending balance Overdue reason
(month) and the basis 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 2023 As at 1 January 2023
Shenzhen City SPG Long Gang
34,222,722.88 39,222,722.88
Development Ltd.
Total 34,222,722.88 39,222,722.88
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 2023 Aging recovered
units) and the basis for
judgment
3） Bad Debt Provisions
□ Applicable √ Not Applicable
Other notes:
（3） Other receivables
1） Other receivables disclosure by nature
Presented in RMB
Item Book balance as at 30 June 2023 Book balance as at 1 January 2023
Other receivables from the
81,000.00 61,133.60
collecting and paying on behalf
Other receivables from other
5,380,433.19 7,106,322.88
customers
Other receivables from related
137,686,536.98 137,686,536.98
parties
Other receivables in consolidated
2,363,782,867.02 2,328,975,282.16
scope
161
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Total 2,506,930,837.19 2,473,829,275.62
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
178,826.36 659,978,808.23 141,014,031.46 801,171,666.05
January 2023
Balance as at 1
January 2023 in
current period
Current roll-back -8,000.00 -8,000.00
Other movements 3,634,423.28 3,634,423.28
Balance as at 30
170,826.36 663,613,231.51 141,014,031.46 804,798,089.33
June 2023
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 2023
Within 1 year (include 1 year) 664,588,609.32
1 to 2 years 400.00
2 to 3 years 209,903,457.31
Over 3 years 1,632,438,370.56
3 to 4 years 78,698,092.26
Over 5 years 1,553,740,278.30
Total 2,506,930,837.19
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
As at 1 June
Types Recoveries or
January 2023 Additions Written-off Others
reversals 2023
Other
receivables 801,171,666. 804,798,089.
-8,000.00 3,634,423.28
bad debt 05 33
provision
801,171,666. 804,798,089.
Total -8,000.00 3,634,423.28
05 33
162
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
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 written-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
Notes:
5） The top five units of ending balance of other receivables
Presented in RMB
Proportion of
Ending balance Ending balance
Name of the Nature of other total ending
of other Aging of bad debt
entity receivables balance of other
receivables provision
receivables (%)
Shantou
Receivable
Huafeng Estate 1-3 years.. over
from 756,160,642.87 30.16%
Development 3 years
Co., Ltd Subsidiary
Guangdong
Jianbang Group Receivable
(Huiyang) from 782,131,884.73 Within 3 years 31.20%
Industrial Co., Subsidiary
Ltd.
Fresh Peak Receivable
from Within 2 years,
Enterprise Co., 528,148,362.01 21.07% 508,377,320.74
over five years
Ltd Subsidiary
Receivable
American Great from 106,865,680.98 Over five years 4.26% 103,231,257.70
Wall Co., Ltd
Subsidiary
Receivable
Fresh Peak from 91,208,173.59 Over five years 3.64%
Zhiye Co., Ltd.
Subsidiary
2,264,514,744.1
Total 90.33% 611,608,578.44
8
6） Government subsidies receivable
Presented in RMB
163
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Name of Estimated time,
Name of the
government subsidy The ending balance Aging amount and basis of
organization
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
Other notes:
3. Long-term equity investments
Presented in RMB
As at 30 June 2023 As at 1 January 2023
Item Impairment Impairment
Book balance Book value Book balance Book value
reserve reserve
Investment in 1,716,020,83 133,839,271. 1,582,181,56 1,716,020,83 133,839,271. 1,582,181,56
subsidiaries 3.00 15 1.85 3.00 15 1.85
Investment in
associates 12,071,773.2 11,977,845.5 12,071,773.2 11,977,845.5
93,927.64 93,927.64
and joint 2 8 2 8
ventures
1,728,092,60 145,817,116. 1,582,275,48 1,728,092,60 145,817,116. 1,582,275,48
Total
6.22 73 9.49 6.22 73 9.49
（1） Investment in subsidiaries
Presented in RMB
Increase/ Decrease (+ / -) in current period provision
As at 1 As at 30
Provision for
Name of January June 2023
Additional Decrease impairme
investee 2023 (book of for Other (book
investment nt as at 30
value) investment value)
impairment June 2023
Shenzhen
Petrel 20,605,047 20,605,047
Hotel Co. .50 .50
Ltd.
Shenzhen
City
9,000,000. 9,000,000.
Shenfang
00 00
Investment
Ltd.
Fresh Peak
Enterprise 556,500.00 556,500.00
Ltd.
Fresh Peak
22,717,697 22,717,697
Zhiye Co.,
.73 .73
Ltd.
Shenzhen
11,332,321 11,332,321
Zhen Tung
.45 .45
Engineerin
164
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
g Ltd
American
1,435,802. 1,435,802.
Great Wall
00 00
Co., Ltd
Shenzhen
City
Shenfang 4,750,000. 4,750,000.
Free Trade 00 00
Trading
Ltd.
Shenzhen
Huazhan
Constructio 6,000,000. 6,000,000.
n 00 00
Supervisio
n Co., Ltd.
Beijing
Shenfang
Property 0.00 0.00 500,000.00
Manageme
nt Co., Ltd.
Shenzhen
Lain Hua
Industry 13,458,217 13,458,217
and .05 .05
Trading
Co., Ltd.
Shenzhen
City SPG
30,850,000 30,850,000
Long Gang
.00 .00
Developme
nt Ltd.
Beijing
Fresh Peak
Property
Developme 64,183,888
0.00 0.00
nt .90
Manageme
nt Limited
Company
Shantou
City
Huafeng 16,467,021 16,467,021
Real Estate .02 .02
Developme
nt Co., Ltd
Paklid
0.00 0.00 201,100.00
Limited
Bekaton
Property 0.00 0.00 906,630.00
Limited
Shenzhen
Shenfang 9,500,000.
0.00 0.00
Departmen 00
t Store Co.
165
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Ltd.
Shantou
58,547,652
Fresh Peak 0.00 0.00
.25
Building
Guangdong
Jianbang
Group 450,000,00 450,000,00
(Huiyang) 0.00 0.00
Industrial
Co., Ltd.
Shenzhen
Shenfang
Chuanqi 995,000,00 995,000,00
Real Estate 0.00 0.00
Developme
nt Co., Ltd.
Wellam
8,955.10 8,955.10
Co., Ltd.
1,582,181, 1,582,181, 133,839,27
Total
561.85 561.85 1.15
（2） Investment in associates and joint ventures
Presented in RMB
Increase/ Decrease (+ / -) in the Jan to Jun 2023
Incom Annou
Openi e from Other nced Endin Endin
g
ng Equity compr for Provis g balanc
Additi
Decre invest ehensi e of
Invest balanc Other distrib ion balanc
onal ase of ment the
ees ve equity
e for Others e
invest invest recog move uting provisi
ment nized Inco ment on for
(book ment cash impair (book
under me impair
value) ment value)
equity adjust divide ment
metho ment nd or
d profit
I. Joint Venture
Fengk
ai
Xingh 9,455,
ua 465.38
Hotel
Subtot 9,455,
al 465.38
II. Associates
Shenz
hen
Rongh 93,927 93,927 1,076,
ua .64 .64 954.64
Jidian
Co.,
166
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Ltd
Shenz
hen
Runhu
a
Autom 1,445,
0.00
425.56
obile
Tradin
g Co.,
Ltd
Subtot 93,927 93,927 2,522,
al .64 .64 380.20
11,977
93,927 93,927
Total ,845.5
.64 .64
8
（3） Other notes
4. Operation Income and Costs
Presented in RMB
Jan to Jun 2023 Jan to Jun 2022
Items
Income Costs Income Costs
Principal business 45,457,639.46 14,351,721.51 160,962,949.24 48,054,643.10
Other businesses 354,014.90 6,035.31
Total 45,811,654.36 14,351,721.51 160,968,984.55 48,054,643.10
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 127,778,556.13 yuan, Among them,
RMB29,610,712.32 yuan is expected to be recognized as revenue in 2023, RMB 46,182,244.76 is expected to
be recognized as revenue in the year 2024, and RMB 32,218,840.95 yuan is expected to be recognized as
revenue in the year 2025.
Other notes:
5. Investment income
Presented in RMB
Item Jan to Jun 2023 Jan to Jun 2022
167
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
Investment income from disposal
174,021,073.48
of financial assets held for trading
Gains on residual equity
remeasured at fair value after 161,491.79 159,619.01
losing control power
Interest arising from debt
obligation investments during the 813,960.00
holding period
Other 1,644,822.69
Total 1,806,314.48 174,994,652.49
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
Gain or loss on disposal of non-
current assets (inclusive of 3,750.50
impairment allowance write-offs)
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 123,732.31 Government grants received
policies and regulations, and will
continuously enjoyed with a fixed
or quantitative manner according
to certain standards）
Gain or loss on assets entrusted to Changes in fair value and
other entities for investment or 3,638,607.35 investment income arising from
management investment in monetary funds
Gain/Loss incurred from
contingency unrelated to the
1,644,822.69
Company’s normal operating
businesses.
Non-operating income/(expenses)
-37,754.41
except the above
Less: Amount affected by the
22,432.10
income tax
Total 5,350,726.34 --
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.
168
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
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 -0.94% -0.0367 -0.0367
shareholders of the Group
Net profit attributable to
common shareholders of
a company after -1.07% -0.0420 -0.0420
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
-37,118,182.81 145,128,330.14 3,903,638,382.72 4,004,240,547.70
standards for
Chinese enterprises
Items and Amount Adjusted according to International Accounting Standards:
According to the
international
-37,118,182.81 145,128,330.14 3,903,638,382.72 4,004,240,547.70
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
169
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2023
（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.
Not Applicable
4. Other
170
