SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE
& PROPERTIES (GROUP) CO., LTD.
INTERIM REPORT 2024
2024-031
【24 August 2024】
Part I Important Notes, Table of Contents and DefinitionsThe 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 thefactuality, accuracy and completeness of the contents of this Report and its summary, andshall be jointly and severally liable for any misrepresentations, misleading statements ormaterial omissions therein.Tang Xiaoping, the Company’s General Manager, Wang Jianfei, the Company’s ChiefFinancial Officer, and Zhou Hongpu, head of the Company’s financial department (equivalentto financial manager) hereby guarantee that the Financial Statements carried in this Reportare factual, accurate and complete.All the Company’s directors have attended the Board meeting for the review of this Reportand its summary.Certain descriptions about the Company’s operating plans or work arrangements for thefuture mentioned in this Report and its summary, the implementation of which is subject tovarious factors, shall NOT be considered as promises to investors. Therefore, investors andinterested parties are reminded to be sufficiently aware of the risks involved and understandthe 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 therebe any discrepancies or misunderstandings between the two versions, the Chinese versionsshall prevail.
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 ...... 21
Part V Environmental and Social Responsibility ...... 23
Part VI Significant Events ...... 24
Part VII Share Changes and Shareholder Information ...... 30
Part VIII Preferred Shares ...... 35
Part IX Bonds ...... 36
Part X Financial Statements ...... 37
Documents Available for Reference
1. The financial statements with the personal signatures and stamps of the Company’s legalrepresentative, Chief Financial Officer and head of the financial department; and
2. The originals of all the documents and announcements disclosed by the Company on SecuritiesTimes, China Securities Journal and Ta Kung Pao during the Reporting Period.
Definitions
| Term | Definition |
| “Shenzhen SASAC” or the “Municipal SASAC” | The State-owned Assets Supervision and Administration Commission of the People’s Government of Shenzhen Municipal |
| SIHC | Shenzhen Investment Holdings Co., Ltd. |
| The “Company”, the “Group”, “SPG” or “we” | ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. 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. |
Part II Corporate Information and Key Financial InformationI Corporate Information
| Stock name | SPG, SPG-B | Stock code | 000029, 200029 |
| Stock exchange for stock listing | Shenzhen Stock Exchange | ||
| 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 any) | ShenZhen Special Economic Zone Real Estate&Properties (Group) Co., Ltd. | ||
| Abbr. (if any) | SPG | ||
| Legal representative | Tang Xiaoping | ||
II Contact Information
| Board Secretary | Securities Representative | |
| Name | Luo Yi | Hong Lu |
| Address | 47/F, SPG Plaza, Renmin South Road, Luohu District, Shenzhen, Guangdong, P.R.China | 47/F, SPG Plaza, Renmin South Road, Luohu District, Shenzhen, Guangdong, 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 2023 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’speriodic 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 asthe place for keeping such reports did not change in the Reporting Period. The said information can be found in the 2023 AnnualReport.
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 2024 | H1 2023 | Change (%) | |
| Operating revenue (RMB) | 134,225,119.43 | 263,616,779.07 | -49.08% |
| Net profit attributable to the listed company’s shareholders (RMB) | 5,622,791.39 | -37,118,182.81 | 115.15% |
| Net profit attributable to the listed company’s shareholders before exceptional gains and losses (RMB) | -5,197,127.55 | -42,468,909.15 | 87.76% |
| Net cash generated from/used in operating activities (RMB) | -108,449,532.06 | -192,140,948.04 | 43.56% |
| Basic earnings per share (RMB/share) | 0.0056 | -0.0367 | 115.26% |
| Diluted earnings per share (RMB/share) | 0.0056 | -0.0367 | 115.26% |
| Weighted average return on equity (%) | 0.11% | -0.94% | 1.05% |
| 30 June 2024 | 31 December 2023 | Change (%) | |
| Total assets (RMB) | 6,436,151,608.29 | 6,485,312,507.46 | -0.76% |
| Equity attributable to the listed company’s shareholders (RMB) | 3,694,698,006.21 | 3,691,082,484.20 | 0.10% |
V Accounting Data Differences under Chinese Accounting Standards (CAS) andInternational Financial Reporting Standards (IFRS) and Foreign Accounting Standards
1. Net Profit and Equity Differences under CAS and IFRS
□ Applicable ? Not applicable
No such differences for the Reporting Period.
2. Net Profit and Equity Differences under CAS and Foreign Accounting Standards
□ Applicable ? Not applicable
No such differences for the Reporting Period.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 allowance write-offs) | 223,872.34 | |
| Government grants recognised in current profit or loss (exclusive of those that are closely related to the Company's normal business operations and given in accordance with defined criteria and in compliance with government policies, and have a continuing impact on the Company's profit or loss) | 83,011.12 | |
| Gain or loss on assets entrusted to other entities for investment or management | 9,721,583.19 | Change in fair value of monetary fund investments |
| Non-operating income and expense other than the above | 1,158,344.96 | |
| Less: Income tax effects | 366,307.11 | |
| Non-controlling interests effects (net of tax) | 585.56 | |
| Total | 10,819,918.94 |
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 AnnouncementNo. 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.
Part III Management Discussion and AnalysisI Principal Activity of the Company in the Reporting Period
(I) Industry review for the Reporting PeriodIn the first half of 2024, despite the significant increase in the complexity, severity and uncertainty of theexternal environment and the new challenges brought by continuous deepening of domestic structuraladjustment, new economic drivers were formed by such factors as the continuous release of macro-policyeffects, the recovery of external demand, and the accelerated development of new quality productivity. In thefirst half of the year, the national economy continued to recover, with economic operation achieving stabilityand progress overall. In terms of industry, the new house market continued the adjustment trend overallnationwide, while the second-hand house market maintained a certain trading scale driven by the strategy ofincreasing trading volume by favourable price. However, the industry still faced a large downward pressureoverall.(II) Review of the Company’s operations in the Reporting PeriodFacing an increasingly complex external context and tougher reform and development tasks in the ReportingPeriod, the Company focused on “stabilising the main business, improving ability, and preventing risks”, withall relevant work achieving certain results.
1. In terms of the operation of main business, key engineering nodes of the SPG Guangmingli project were fullyadvanced as scheduled, with all relevant residences being sold out and more than half of the propertymanagement tasks being completed.
2. In terms of ability building, the Company formulated the decision management method of “major issues,major appointments and dismissals, major project investment, and use of large amount of funds”, organised thetraining of middle-level management personnel and reserve talents to improve their leadership, completed thepreparation of the Real Estate Development Manual (Trial), and is working to promote the establishment of the“Good House” information database, the Group’s historical real estate database, and the database of house typesof typical real estate in the market.
3. In terms of risk prevention, the Company properly coped with project operation risks and protected theCompany’s rights and interests through litigation preservation and other means. Additionally, the Companystrengthened the management of project safety, regularly conducted all kinds of safety inspections, andthoroughly completed the rectification of hazards. The establishment of the Company’s compliancemanagement system in 2024 is progressing in an orderly manner.
4. In terms of Party building integration, the Company promoted all affiliated enterprises to complete the newround of revision regarding the “Integration of Party Building into the Articles of Association”. Moreover, theCompany joined hands with the Bureau of Commerce of Luohu District in conducting investment promotion
activities, and entered into an agreement on joint Party building with Jiabei Community, Nanhu Sub-district.Additionally, the study and education of Party discipline were carried out through various forms such as specialstudy by the Party committee, centralised discussion by the central group, reading seminar, and visit to integrityeducation base. The Company also regularly conducted reminder talks and integrity talks before the officialassumption of duty in an effort to create a good working environment featuring cleanness and righteousness.
The Company is subject to the information disclosure requirements for the real estate industry in the Disciplinary and RegulatoryGuideline No. 3 of the Shenzhen Stock Exchange for Listed Companies—Industry-specific Information Disclosure.New additions to the land bank:
| Name of land lot or project | Location | Planned use of land | Site area（㎡） | Floor area with plot ratio （㎡） | How the land is obtained | The Company’s interest | Total land price (RMB’0,000) | Consideration of the Company’s interest (RMB’0,000) |
Cumulative land bank:
| Name of project/area | Site area（0,000 ㎡） | Floor area（0,000 ㎡） | Floor area available for development（0,000 ㎡） |
| Xinfeng Building in Shantou | 0.59 | 2.66 | 2.66 |
| Linxinyuan Phase II | 2.57 | 7.72 | 7.72 |
| Linxinyuan Phase III | 4.31 | 9.57 | 9.57 |
| Linxinyuan Phase IV | 3.23 | 6.45 | 6.45 |
| Total | 10.70 | 26.40 | 26.40 |
Development status of major projects:
| City/region | Name of project | Location | Status | The Company’s interest | Time for commencement of construction | % developed | % constructed | Site area（㎡） | Planned floor area with plot ratio （㎡） | Floor area completed in the Current Period（㎡） | Cumulatively completed floor area （㎡） | Expected total investment (RMB’0,000) | Cumulative investment (RMB’0,000) |
| Huizhou | Linxinyuan Phase I | Huiyang | Framework in construction | 51.00% | 11 June 2021 | Under construction | 96.00% | 64,278 | 159,761 | 0 | 0 | 115,750 | 111,905 |
| Shenzhen | SPG Guangmingli | Guangming District | Framework in construction | 100.00% | 19 January 2022 | Under construction | 88.00% | 10,721 | 53,605 | 0 | 0 | 151,758 | 134,692 |
Sales status of major projects:
| City/region | Name of project | Location | Status | The Company’s interest | Floor area with plot ratio （㎡） | Floor area available for sale （㎡） | Cumulatively pre-sold/sold floor area （㎡ | Floor area pre-sold/sold in the Current Period | Pre-sale/sales revenue generate in the Curren | Cumulatively settled floor area (㎡) | Floor area settled in the Current Period（㎡ | Pre-sale/sales revenue settled in the Current |
| ） | （㎡） | t Period (RMB’0,000) | ） | Period (RMB’0,000) | ||||||||
| Shenzhen | Cuilinyuan | Longgang District | Ready for sale | 100.00% | 60,111 | 56,137 | 54,522 | 54,652 | 130 | 204 | ||
| Shantou | Tianyuewan Phase I | Chaoyang District | Ready for sale | 100.00% | 153,470 | 160,372 | 120,705 | 688 | 431 | 109,134 | 675 | 403 |
| Shantou | Tianyuewan Phase II | Chaoyang District | Ready for sale | 100.00% | 127,770 | 137,059 | 39,051 | 1,621 | 869 | 37,839 | 1267 | 620 |
| Huizhou | Linxinyuan Phase I | Huiyang District | On pre-sale | 51.00% | 159,761 | 159,761 | 1,418 | |||||
| Shenzhen | SPG Guangmingli | Guangming District | On pre-sale | 100.00% | 53,605 | 51,975 | 34,572 | 4,599 | 10,669 |
Rental status of major projects:
| Name of project | Location | Use | The Company’s interest | Rentable area （㎡） | Cumulative rented area （㎡） | Average occupancy rate |
| Real Estate Mansion | Shenzhen | Commercial | 100.00% | 3,413.88 | 3,413.88 | 100.00% |
| North Tower of Guoshang Mansion | Shenzhen | Commercial | 100.00% | 4,819.71 | 4,819.71 | 100.00% |
| Petrel Building | Shenzhen | Commercial | 100.00% | 22,475.47 | 22,475.47 | 100.00% |
| SPG Plaza | Shenzhen | Office building | 100.00% | 59,425.10 | 30,999.52 | 52.17% |
| Podium of SPG Plaza | Shenzhen | Commercial | 100.00% | 19,886.30 | 14,463.75 | 72.73% |
| Wenjin Garden | Shenzhen | Commercial | 100.00% | 3,531.60 | 3,531.60 | 100.00% |
Primary land development:
□ Applicable ? Not applicable
Financing channels:
| Financing channel | Ending balance of financings (RMB’0,000) | Financing cost range/average financing cost | Maturity structure (RMB’0,000) | |||
| Within 1 year | 1-2 years | 2-3 years | Over 3 years | |||
| Bank loans | 11,261.85 | 3.6%-4.2% | 5,028.22 | 12.52 | 12.52 | 6,208.59 |
| Total | 11,261.85 | 3.6%-4.2% | 5,028.22 | 12.52 | 12.52 | 6,208.59 |
Development strategy and operating plan for the coming year:
In the second half of the year, the Company will focus on the priorities, progress and implementation of theresponsibility letter for business performance targets, and strive to make new breakthroughs in various work, soas to continuously stabilise the increasingly enhanced development momentum.
(I) The Company will strive to promote the sales of existing real estate, continuously improve its asset operationcapability, pay close attention to the operation of affiliated enterprises, and ensure the completion of annualbusiness tasks.(II) The Company will make every effort to ensure the quality, safety and progress of the SPG Guangmingliproject, carry on with the special programme of quality and efficiency improvement, accelerate the progressionof a series of lawsuits regarding the Linxinyuan project, and ensure the effective implementation of annual keywork.(III) The Company will continue to improve its capabilities of corporate governance and market valuemanagement, actively promote the establishment of its internal control and compliance systems, strengthen themanagement of its budgets and cash flow, and consolidate its operating foundation.(IV) The Company will conduct the learning and education of Party discipline in a high-quality manner,continue to do well in the construction of corporate leadership, the standardisation of grassroots partyorganisations and the development of Party members, consolidate the political responsibility for full andrigorous Party self-governance, keep improving the “mega supervision” system, and lead the high-qualitydevelopment of the Company with Party building.
Provision of guarantees for homebuyers on bank mortgages:
? Applicable □ Not applicable
| Project | Guarantee period | Guarantee amount (RMB’0,000) |
| Shanglinyuan | Until the property ownership certificate is registered as collateral and handed over to bank for keeping | 45.15 |
| Cuilinyuan | Until the property ownership certificate is registered as collateral and handed over to bank for keeping | 834.67 |
| Chuanqi Donghu Mingyuan | Until the property ownership certificate is registered as collateral and handed over to bank for keeping | 662.04 |
| Tianyuewan | Until the property ownership certificate is registered as collateral and handed over to bank for keeping | 1,989.28 |
| Guangmingli | Until the property ownership certificate is registered as collateral and handed over to bank for keeping | 51,357.25 |
| Linxinyuan | Until the property ownership certificate is registered as collateral and handed over to bank for keeping | 730.84 |
| Total | 55,619.24 |
Joint investments by directors, supervisors and senior management and the listed company (applicable for such investments wherethe directors, supervisors and senior management are the major source of investment):
? Applicable □ Not applicable
| Project | Type of investor | Investment amount (RMB) | As % of total investment | As % of the peak of project funds | Cumulative returns (RMB) | Disinvestment | Compatibility of actual investment and returns |
| Linxinyuan | Director, supervisor or senior management of the Company | 8,950,000.00 | 39.25% | 0.90% | 0.00 | N/A | N/A |
II Core Competitiveness AnalysisAs the earliest real estate developer founded in the Shenzhen Special Economic Zone, the Company helpedbuild 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 thecooperative land development, the first to raise development funds by means of pre-sale of buildings, the first tocarry out public bidding for construction projects in accordance with international practices, the first to set up aproperty management company to the buildings and residences developed in an all-rounded manner, as well aswinning 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 estatedevelopment 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 modernenterprise HR management system and works hard in building a professional and high-quality developmentteam. 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. Moreimportantly, its main business operation ability and core competitiveness have been greatly enhanced.In 2024, the Company was awarded the title as the "2024 Brand Value Enterprise of Shenzhen Real EstateDevelopment Industry" and the SPG Guangmingli Project was awarded the title as the “Shenzhen ConstructionEngineering Safety Production and Civilized Construction Excellent Site”.IV Core Business AnalysisOverview:
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 2024 | H1 2023 | Change (%) | Main reason for change | |
| Operating revenue | 134,225,119.43 | 263,616,779.07 | -49.08% | Decreased revenue from property sales |
| Cost of sales | 107,432,457.51 | 217,229,426.83 | -50.54% | Decreased revenue from property sales and corresponding decreased carry-forward costs |
| Selling expense | 5,445,739.08 | 8,790,640.18 | -38.05% | Decreased revenue from property sales and corresponding decreased selling expense |
| Administrative expense | 27,071,704.47 | 23,453,199.45 | 15.43% | Project development and staff structure adjustments |
| Finance costs | -5,155,017.94 | -612,267.71 | -741.95% | Increased bank balances and deposit interest income |
| Income tax expense | 218,507.36 | -2,580,629.05 | 108.47% | Increased gross profit |
| Net cash generated from/used in operating activities | -108,449,532.06 | -192,140,948.04 | 43.56% | Payment of land value-added tax for the Chuanqi Donghu Mingyuan project in last year |
| Net cash generated from/used in investing activities | -39,264,136.06 | 138,197,734.83 | -128.41% | Purchase of monetary funds |
| Net cash generated from/used in financing activities | -103,884,505.69 | 38,186,866.07 | -372.04% | Return of bank loans in this year |
| Net increase in cash and cash equivalents | -251,595,688.62 | -15,583,954.90 | -1,514.45% | Decreased revenue from property sales and return of bank loans |
Major changes in the profit structure or sources of the Company in the Reporting Period:
□Applicable ? Not applicable
No such cases in the Reporting Period.Breakdown of operating revenue:
Unit: RMB
| H1 2024 | H1 2023 | Change (%) | |||
| Operating revenue | As % of total operating revenue (%) | Operating revenue | As % of total operating revenue (%) | ||
| Total | 134,225,119.43 | 100% | 263,616,779.07 | 100% | -49.08% |
| By operating division | |||||
| Property sales | 15,866,847.06 | 11.82% | 72,404,365.93 | 27.47% | -78.09% |
| Engineering and construction | 75,207,523.59 | 56.03% | 149,278,954.13 | 56.63% | -49.62% |
| Rental service | 38,496,213.77 | 28.68% | 35,655,793.46 | 13.53% | 7.97% |
| Property management | 1,667,962.60 | 1.24% | 1,579,444.44 | 0.60% | 5.60% |
| Other | 2,986,572.41 | 2.23% | 4,698,221.11 | 1.78% | -36.43% |
| By product category | |||||
| Residential units | 11,145,294.67 | 8.30% | 71,997,900.22 | 27.31% | -84.52% |
| Shops and parking lots | 4,721,552.39 | 3.52% | 406,465.71 | 0.15% | 1,061.61% |
| Other | 118,358,272.37 | 88.18% | 191,212,413.14 | 72.53% | -38.10% |
| By operating segment | |||||
| Guangdong Province | 133,878,137.74 | 99.74% | 263,276,484.95 | 99.87% | -49.15% |
| Other regions in China | 0.00 | 0.00% | 0.00 | 0.00% | |
| Overseas | 346,981.69 | 0.26% | 340,294.12 | 0.13% | 1.97% |
Operating division, product category or operating segment contributing over 10% of operating revenue or operating profit:
? Applicable □ Not applicable
Unit: RMB
| Operating revenue | Cost of sales | Gross profit margin | YoY change in operating revenue (%) | YoY change in cost of sales (%) | YoY change in gross profit margin (%) | |
| By operating division | ||||||
| Property sales | 15,866,847.06 | 9,444,411.19 | 40.48% | -78.09% | -80.76% | 8.27% |
| Engineering and construction | 75,207,523.59 | 73,394,216.19 | 2.41% | -49.62% | -49.75% | 0.26% |
| Rental service | 38,496,213.77 | 20,415,238.79 | 46.97% | 7.97% | 13.38% | -2.53% |
| Property management | 1,667,962.60 | 1,255,606.47 | 24.72% | 5.60% | -0.87% | 4.92% |
| Other | 2,986,572.41 | 2,922,984.87 | 2.13% | -36.43% | 4.19% | -38.16% |
| By product category | ||||||
| Residential units | 11,145,294.67 | 8,412,667.52 | 24.52% | -84.52% | -82.72% | -7.86% |
| Shops and parking lots | 4,721,552.39 | 1,031,743.67 | 78.15% | 1,061.61% | 159.44% | 75.99% |
| Other | 118,358,272.37 | 97,988,046.32 | 17.21% | -38.10% | -41.73% | 5.15% |
| By operating segment | ||||||
| Guangdong Province | 133,878,137.74 | 107,432,457.51 | 19.75% | -49.15% | -50.54% | 2.26% |
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 2024 | 31 December 2023 | Change in percentage (%) | Reason for any significant change | |||
| Amount | As a % of total assets | Amount | As a % of total assets | |||
| Monetary assets | 615,370,205.69 | 9.56% | 871,019,268.83 | 13.43% | -3.87% | Return of bank loans in this year |
| Accounts receivable | 85,938,275.00 | 1.34% | 75,100,970.83 | 1.16% | 0.18% | |
| Contract assets | 6,250,878.84 | 0.10% | 27,352,596.92 | 0.42% | -0.32% | |
| Inventories | 4,019,777,603.21 | 62.46% | 3,915,215,921.96 | 60.37% | 2.09% | Development of projects |
| Investment property | 528,503,549.53 | 8.21% | 541,542,136.17 | 8.35% | -0.14% | |
| Long-term equity investments | 0.00 | 0.00% | 0.00% | |||
| Fixed assets | 18,955,069.88 | 0.29% | 19,928,049.77 | 0.31% | -0.02% | |
| Construction in progress | ||||||
| Right-of-use assets | 33,213.86 | 0.00% | 99,641.48 | 0.00% | 0.00% | |
| Short-term borrowings | 10,310,396.09 | 0.16% | 3,550,000.00 | 0.05% | 0.11% | |
| Contract liabilities | 1,376,279,056.32 | 21.38% | 1,291,448,591.28 | 19.91% | 1.47% | Advance receipts from the sale of properties. |
| Long-term borrowings | 62,336,264.42 | 0.97% | 179,431,851.02 | 2.77% | -1.80% | Return of bank loans in this year |
| Lease liabilities | ||||||
| Held-for-trading financial assets | 929,061,785.11 | 14.44% | 879,340,201.92 | 13.56% | 0.88% | |
| Accounts payable | 403,762,092.10 | 6.27% | 443,259,768.78 | 6.83% | -0.56% | |
| Taxes payable | 36,028,327.36 | 0.56% | 40,908,986.48 | 0.63% | -0.07% | |
| Other payables | 559,465,239.08 | 8.69% | 554,469,229.59 | 8.55% | 0.14% | |
2. Major Assets Overseas
□Applicable ? Not applicable
3. Assets and Liabilities at Fair Value
? Applicable □ Not applicable
Unit: RMB
| Item | Beginning amount | Gain/loss on fair-value changes in the Reporting Period | Cumulative fair-value changes charged to equity | Impairment allowance for the Reporting Period | Purchased in the Reporting Period | Sold in the Reporting Period | Other changes | Ending amount |
| Financial assets | ||||||||
| 1. Held-for-trading financial assets (excluding derivative financial assets) | 879,340,201.92 | 9,721,583.19 | 40,000,000.00 | 929,061,785.11 | ||||
| 4. Investments in other equity instruments | 14,324,411.35 | 735,928.78 | 15,060,340.13 | |||||
| Total of the above | 893,664,613.27 | 9,721,583.19 | 735,928.78 | 40,000,000.00 | 944,122,125.24 | |||
| Financial liabilities | 0.00 | 0.00 | ||||||
Other change
Significant changes to the measurement attributes of the major assets in the Reporting Period:
□Yes ? No
4. Restricted Asset Rights as at the Period-End
Unit: RMB
| Item | Ending carrying value | Reasons |
| Monetary assets | 5,817,987.13 | Project of public facilities inside and surrounding the urban renewal project of Longgang District, Shenzhen-construction funds; land reclamation expenses of SPG Guangmingli Project |
| Monetary assets | 1,951,493.83 | Frozen in a lawsuit case |
| Monetary assets | 50,000.00 | Construction deposit |
| Accounts receivable | 19,465,979.77 | Put in pledge for short-term borrowings |
| Investment property | 44,297,197.87 | Mortgaged for borrowings |
| Total | 71,582,658.60 |
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
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 applicablePrincipal subsidiaries and joint stock companies with an over 10% effect on the Company’s net profit:
Unit: RMB
| Company name | Relationship with the Company | Main business scope | Registered capital | Total assets | Net assets | Operating revenue | Operating profit | Net profit |
| Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd. | Subsidiary | Development of real estate | 2,800,000.00 | 1,529,666,556.02 | -26,868,937.86 | 0.00 | -1,435,932.21 | -1,435,932.21 |
| Shenzhen SPG Chuanqi Real Estate Development Co., Ltd. | Subsidiary | Development of real estate | 30,000,000.00 | 2,543,212,434.53 | 993,750,944.73 | 0.00 | 3,334,218.73 | 3,004,665.16 |
| Shenzhen SPG Longgang Development Co., Ltd. | Subsidiary | Development of real estate | 30,000,000.00 | 95,765,243.88 | 57,816,092.80 | 3,079,542.86 | 1,635,230.76 | 2,352,536.19 |
| Shantou SEZ, Wellam FTY, Building Development, Co., Ltd. | Subsidiary | Development of real estate | USD15,000,000.00 | 80,853,426.72 | 10,317,646.14 | 36,398.30 | -213,526.07 | -213,526.07 |
| Shantou Huafeng Real Estate Development Co., Ltd. | Subsidiary | Development of real estate | 80,000,000.00 | 778,129,608.85 | 10,666,863.81 | 10,510,825.00 | -2,881,159.83 | -2,160,869.80 |
| Great Wall Estate Co., Inc. (U.S.) | Subsidiary | Rental services | USD500,000.00 | 20,153,133.99 | -92,335,026.00 | 346,981.69 | -169,152.27 | -169,152.27 |
| Shenzhen Zhentong Engineering Co., Ltd. | Subsidiary | Installation | 10,000,000.00 | 119,904,750.22 | 21,975,375.76 | 87,506,253.43 | 389,096.27 | 404,821.49 |
| Shenzhen Petrel | Subsidiary | Rental services | 30,000,000.00 | 46,790,025.64 | 39,685,858.54 | 8,843,619.09 | 807,002.26 | 757,220.54 |
| Hotel Co., Ltd. | and property management | |||||||
| Shenzhen Huazhan Construction Supervision Co., Ltd. | Subsidiary | Construction supervision | 8,000,000.00 | 10,445,542.45 | 9,878,523.75 | 967,801.48 | -567,623.59 | -584,303.82 |
| Xin Feng Enterprise Co., Ltd. | Subsidiary | Investment and management | HKD500,000.00 | 338,402,860.09 | -233,303,252.43 | -952,387.67 | -952,387.67 |
Subsidiaries obtained or disposed in the Reporting Period:
?Applicable □ Not applicable
| Subsidiary | How subsidiary was obtained or disposed | Effects on overall operations and performance |
| Xin Feng Enterprise Co., Ltd. | Liquidation and cancellation | The enterprise has no actual business and has no impact on the operation and performance of the Company |
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 GuangdongJianbang Group (Huiyang) Industrial Co., Ltd. The project company will develop the Linxingyuan Project with a gross site area of200,000 square meters and a total capacity building area of 0.4 million square meters, which will be developed in four phases. TheGroup has control over the project company, which will be included in the scope of consolidation in May 2021. As of 30 June2024, eight residential buildings of Phase I have been capped, the basement of Phase II has been completed, the development ofPhase III and Phase IV are to be initiated, and construction permit has not been granted for the school. There were no sales in thefirst half of 2024.
2. In October 2021, the Company won the bid for a land plot in Guangming District and established the project company ShenzhenSPG Chuanqi Real Estate Development Co., Ltd. to be responsible for the development and construction of the land. In the firsthalf of 2024, actual investment totaled RMB123.14 million, which was mainly made in main construction and decoration project.
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. TheCuilinyuan project developed by Shenzhen SPG Longgang Development Co., Ltd. recorded no sales in the first half of 2024.Jinyedao and YuejingDongfang developed by Shantou SEZ, Wellam FTY, Building Development, Co., Ltd. left a few amount ofremaining buildings for sale. And Shantou Huafeng Real Estate Development Co., Ltd. was responsible for the development ofTianyuewan project (divided into Phase I and Phase II). Tianyuewan Phase I was open for sale in October 2016 and completed inDecember 2019. The Phase II started construction in November 2018 and was completed at the end of June 2021. The overallsales progress is relatively slow with an accumulated sales rate of about 75% for Phase I and 28% for Phase II.
4. Shenzhen Zhentong Engineering Co., Ltd. was engaged in the business of building installation and maintenance with the H12024 operating revenues of RMB87.51 million and of 65.19% to the operating revenues of the Company.
5. The H1 2024 net profit of Xin Feng Enterprise Co., Ltd. was of RMB-952,400 which mainly due to the depreciation andamortization of investment property.IX Structured Bodies Controlled by the Company
□Applicable ? Not applicable
X Risks Facing the Company and Countermeasures(I) Macroeconomic risks and countermeasuresIn the first half of this year, the external environment became more complex, severe and uncertain. In the firsthalf of this year, China’s GDP increased by 5.0% year on year. Specifically, the growth rate in the secondquarter was slower than that in the first quarter, but the fundamentals of stable economic operation and long-term improvement remained changed. The real estate industry has a greater correlation with the macroeconomyand is more influenced by the macroeconomic cycle. The Company will continue paying close attention to theinternational and domestic macroeconomic situations and proactively adjust its operation strategies.(II) Industry development risks and countermeasuresAt this stage, in the real estate industry, although the financing environment has improved, and the policies aresustained favorable, during an upcoming period, the market is still in the bottoming out phase and potentialindustry risks still exist, resources will continue flowing to leading quality enterprises, the industry competitionpattern will present a new situation. The Company will continue deepening the research on industry policies,following national strategy, optimizing the development method, and innovating its operating model.(III) Business operating risks and countermeasuresThe continuous downturn in the property market has led to increased difficulties in the sale of the Company'sinventory projects, meanwhile, the Company's existing reserves of development land resources are insufficient,and the expansion of new business has not yet yielded substantial results, thus putting pressure on the enterprisefor its operation and development. The Company will pay close attention to changes in the market and industrypolicies, focus on project construction and property sales, formulate targeted land expansion plans, consolidatethe foundation of the core business, and proactively explore new paths in line with the actual development ofthe Company.XI Implementation of the Action Plan for “Dual Enhancement of Quality and Profitability”Has the Company disclosed its Action Plan for “Dual Enhancement of Quality and Profitability”
□Yes ?No
Part IV Corporate Governance
I Annual and Extraordinary General Meeting Convened during the Reporting Period
1. General Meetings Convened during the Reporting Period
| Meeting | Type | Investor participation ratio | Convened date | Disclosure date | Resolution of meeting |
| The First Extraordinary General Meeting in 2024 | Extraordinary General Meeting | 62.46% | 22 February 2024 | 23 February 2024 | Resolutions of First Extraordinary General Meeting in 2024 disclosed on China Securities, Securities Times and www.cninfo.com.cn (No.: 2024-005) |
| The 2023 Annual General Meeting | Annual General Meeting | 62.48% | 17 May 2024 | 18 May 2024 | Resolutions of 2023 Annual General Meeting disclosed on China Securities, Securities Times and www.cninfo.com.cn (No.: 2024-020) |
2. Extraordinary General Meeting Convened at Request of Preference Shareholders with ResumedVoting Rights
□Applicable ? Not applicable
II Change of Directors, Supervisors and Senior Management?Applicable □ Not applicable
| Name | Office title | Type | Date | Reason |
| Kang Xiaoyue | Independent director | Left office | 17 May 2024 | Serving as an independent director of the Company for six consecutive years |
| Liu Haifeng | Independent director | Elected | 17 May 2024 | |
| Lin Jun | Employee supervisor | Left office | 15 May 2024 | Retirement |
| Xu Fangming | Employee supervisor | Elected | 15 May 2024 |
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 Measuresfor Employees
□Applicable ? Not applicable
No such cases in the Reporting Period.
Part V Environmental and Social Responsibility
I Major Environmental IssuesIndicate by tick mark whether the Company or any of its subsidiaries is a heavily polluting business identified by theenvironmental protection authorities of China.
□Yes ? No
Administrative penalties imposed for environmental problems during the Reporting Period
| Name | Reason | Case | Result | Influence on production and operation | Rectification measures |
| N/A | N/A | N/A | N/A | N/A | N/A |
Other environmental information disclosed with reference to the heavily polluting businessThe Company and its subsidiaries are not imposed any administrative penalties for environmental problems during the ReportingPeriod.Measures taken to decrease carbon emission in the Reporting Period and corresponding effects
□Applicable ? Not applicable
Reason for failure of disclosing other environmental informationThe Company and its subsidiaries are not heavily polluting business identified by the environmental protection authorities ofChina.II Social ResponsibilityWhile pursuing economic benefits and protecting the interests of shareholders, the Company proactivelyfulfilled its social responsibilities demonstrating the Company’s social value and responsibilities. During theReporting Period, the Company proactively participated in the “Support for Family Planning and Care forFamilies in Need” donation campaign in Jiabei Community, actively purchased agricultural and sidelineproducts for consumer assistance to contribute to the consumer assistance and rural revitalisation work inShenzhen, and regularly organised emergency evacuation drills for commercial tenants in properties under itsjurisdiction to enhance public awareness of fire safety.
Part VI Significant Events
I Commitments of the Company’s De Facto Controller, Shareholders, Related Parties andAcquirers, as well as the Company Itself and Other Entities Fulfilled in the ReportingPeriod 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 ItsRelated 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 Regardingthe Independent Auditor's “Modified Opinion” on the Financial Statements of theReporting Period
□Applicable ? Not applicable
VI Explanations Given by the Board of Directors Regarding the Independent Auditor's“Modified Opinion” on the Financial Statements of Last Year
□Applicable ? Not applicable
VII Insolvency and Reorganization
□Applicable ? Not applicable
No such cases in the Reporting Period.VIII Legal Matters
Significant lawsuits and arbitrations:
? Applicable □ Not applicable
| General information | Involved amount (RMB’0,000) | Provision | Progress | Decisions and effects | Execution of decisions | Disclosure date | Index to disclosed information |
| Xi’an Project Lawsuit | 2,154 | No | In execution | ? Xi’an Business Tourism Company Limited (hereinafter referred to as “Business Company”) had to pay for the compensation RMB36.62 million and the relevant interest (from 14 September 1998 to the payment day) to Xi’an Fresh Peak Company within one month after the judgment entering into force. If the Business Company failed to pay in time, it had to pay double debt interests to Xi’an Fresh Peak Company for the overdue period; ② Xi’an Joint Commission on Commerce had jointly and severally obligation of the interests of the compensation; .③ Business Company shall bear RMB227,500 of the acceptance fee and the security fee. | Shaanxi High People’s Court Sold all assets of Business Company by auction in accordance with laws in 2004. Xi’an Fresh Peak Company has received RMB15.201 million. Now Business Company has no executable properties and Xi’an Joint Commission on Commerce has been refusing to execute the ruling. It is difficult to recover the rest. The case is at the final stage of the enforcement proceedings. | 30 March 2024 | Annual Report 2023 (No.: 2024-009) on www.cninfo.com.cn |
| Lawsuit of bill dispute | 17,715.14 | No | In execution | As Jianbang Group is incapable of paying the commercial bills due in January 2022, which total RMB177,151,400, Huizhou Mingxiang Economic Information Consulting Co., Ltd., Huizhou Huiyang Hongfa Industry & Trade Co., Ltd. and Huizhou Jinlongsheng Industrial Co., Ltd. brought a lawsuit 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. | Huizhou Mingxiang Economic Information Consulting Co., Ltd., Huizhou Huiyang Hongfa Industry and Trade Co., Ltd., and Huizhou Jinlongsheng Industrial Co., Ltd. have applied to Huizhou Intermediate People's Court for execution. | 30 March 2024 | Annual Report 2023 (No.: 2024-009) on www.cninfo.com.cn |
| Contractual disputes over | 39,568.85 | No | Judgment was rendered in the | In January 2024, the Company received a civil judgment of the first instance issued by the | The judgment of the first instance has taken effect. | 3 February 2024 | Announcement on the Progress of Litigation |
| loans | first instance | Shenzhen Luohu District People's Court. | Matters (No.: 2024-003) on www.cninfo.com.cn | ||||
| Joint venture and cooperative real estate development contract disputes | 74,357.5 | No | The first trial has been held | The case was heard in February 2024 and has not yet been decided. | The first trial has been held | 8 December 2023 | Announcement on Litigation Matters (No.: 2023-048) on www.cninfo.com.cn |
| Contractual disputes over loans | 41,952.29 | No | Second instance | The case received the first instance judgment in June 2024, and entered the second instance procedure due to the defendant's appeal. | The second trial has not yet been filed | 13 January 2024 | Announcement on Litigation Matters (No.: 2024-001) on www.cninfo.com.cn |
Other legal matters:
□Applicable ? Not applicable
IX Punishments and Rectifications
□Applicable ? Not applicable
No such cases in the Reporting Period.X Credit Quality of the Company as well as its Controlling Shareholder and De FactoController
□Applicable ? Not applicable
XI Major Related-Party Transactions
1. Continuing Related-Party Transactions
□Applicable ? Not applicable
No such cases in the Reporting Period.
2. Related-Party Transactions Regarding Purchase or Sales of Assets or Equity Interests
□Applicable ? Not applicable
No such cases in the Reporting Period.
3. Related Transactions Regarding Joint Investments in Third Parties
□Applicable ? Not applicable
No such cases in the Reporting Period.
4. Amounts Due to and from Related Parties
□Applicable ? Not applicable
No such cases in the Reporting Period.
5. Transactions with Related Finance Companies
□Applicable ? Not applicable
The Company did not make deposits in, receive loans or credit from and was not involved in any other finance business with anyrelated 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 anyother 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) | ||||||||||
| Obligor | Disclosu | Line of | Actual | Actual | Type of | Collatera | Counter | Term of | Having | Guarante |
| re date of the guarantee line announcement | guarantee | occurrence date | guarantee amount | guarantee | l (if any) | guarantee (if any) | guarantee | expired or not | e for a related party or not | |
| Guarantees provided by the Company as the parent for its subsidiaries | ||||||||||
| Obligor | Disclosure date of the guarantee line announcement | Line of guarantee | Actual occurrence date | Actual guarantee amount | Type of guarantee | Collateral (if any) | Counter guarantee (if any) | Term of guarantee | Having expired or not | Guarantee for a related party or not |
| Shenzhen SPG Chuanqi Real Estate Development Co., Ltd. | 18 March 2022 | 50,000 | 17 June 2022 | 5,015.7 | Pledge | 100% equity interests of Shenzhen SPG Chuanqi Real Estate Development Co., Ltd. held by the Company | From the date of signing the guarantee contract to the date when all guaranteed debts are unconditionally and irrevocably paid off in full. | Not | Not | |
| Total approved line for such guarantees in the Reporting Period (B1) | Total actual amount of such guarantees in the Reporting Period (B2) | |||||||||
| Total approved line for such guarantees at the end of the Reporting Period (B3) | 50,000 | Total actual balance of such guarantees at the end of the Reporting Period (B4) | 5,015.7 | |||||||
| Guarantees provided between subsidiaries | ||||||||||
| Obligor | Disclosure date of the guarantee line announcement | Line of guarantee | Actual occurrence date | Actual guarantee amount | Type of guarantee | Collateral (if any) | Counter guarantee (if any) | Term of guarantee | Having expired or not | Guarantee for a related party or not |
| Total guarantee amount (total of the three kinds of guarantees above) | ||||||||||
| Total guarantee line approved in the Reporting Period (A1+B1+C1) | Total actual guarantee amount in the Reporting Period (A2+B2+C2) | |||||||||
| Total approved guarantee line at the end of the Reporting Period (A3+B3+C3) | 50,000 | Total actual guarantee balance at the end of the Reporting Period (A4+B4+C4) | 5,015.7 | |||||||
| Total actual guarantee amount (A4+B4+C4) as % of the Company’s net assets | 1.36% |
| Of which: | |
3. Cash Entrusted for Wealth Management
? Applicable □ Not applicable
Unit: RMB’0,000
| Type | Funding source | Amount | Undue amount | Unrecovered overdue amount | Unrecovered overdue amount with provision for impairment |
| Other | Self-funded | 92,906.18 | 92,906.18 | 0 | 0 |
| Total | 92,906.18 | 92,906.18 | 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 forentrusted wealth management
□Applicable ? Not applicable
4. Other Significant Contracts
□Applicable ? Not applicable
No such cases in the Reporting Period.XIII Other Significant EventsSIHC, the controlling shareholder of the Company, intends to transfer 71,498,100 shares of the Company (7.07%of the total share capital of the Company) held by it to China Orient Asset Management Co., Ltd. throughtransfer by agreement. This share transfer by agreement is subject to the approval by the concerned state-ownedassets regulatory authority, the compliance confirmation by the Shenzhen Stock Exchange, and the applicationfor share transfer registration with China Securities Depository and Clearing Corporation Limited. Therefore, itis still uncertain whether this share transfer by agreement can be successfully completed. For details, pleaserefer to the Suggestive Announcement on Transfer by Agreement of Part of the Company’s Shares by theControlling Shareholder and Consequent Change in Equity (Announcement No.: 2024-021) disclosed by theCompany on 29 June 2024.XIV Significant Events of Subsidiaries
□Applicable ? Not applicable
Part VII Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
| Before | Increase/decrease (+/-) in the current period | After | |||||||
| Shares | Percentage (%) | New issues | Shares as dividend converted from profit | Shares as dividend converted from capital reserves | Other | Subtotal | Shares | Percentage (%) | |
| 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 state | 0.00 | 0.00% | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00% |
| 1.2 Shares held by state-own legal person | 0.00 | 0.00% | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00% |
| 1.3 Shares held by other domestic investors | 0.00 | 0.00% | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00% |
| Among which: shares held by domestic legal person | 0.00 | 0.00% | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00% |
| Shares held by domestic natural person | 0.00 | 0.00% | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00% |
| 1.4 Oversea shareholdings | 0.00 | 0.00% | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00% |
| Amo | 0.00 | 0.00% | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00% |
| ng which: shares held by oversea legal person | |||||||||
| Shares held by oversea natural person | 0.00 | 0.00% | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00% |
| 2. Unrestricted shares | 1,011,660,000.00 | 100.00% | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1,011,660,000.00 | 100.00% |
| 2.1 RMB ordinary shares | 891,660,000.00 | 88.14% | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 891,660,000.00 | 88.14% |
| 2.2 Domestically listed foreign shares | 120,000,000.00 | 11.86% | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 120,000,000.00 | 11.86% |
| 2.3 Oversea listed foreign shares | 0.00 | 0.00% | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00% |
| 2.4 Other | 0.00 | 0.00% | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00% |
| 3. Total shares | 1,011,660,000.00 | 100.00% | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1,011,660,000.00 | 100.00% |
Reasons for share changes:
□Applicable ? Not applicable
Approval of share changes:
□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 ordinaryshareholders 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 shareholders at the period-end | 41,580 | Total number of preference shareholders with resumed voting rights at the period-end | 0 | ||||||||
| Shareholding of ordinary shareholders holding more than 5% shares or the top 10 of ordinary shareholders (exclusive of shares lent in refinancing) | |||||||||||
| Name of shareholder | Nature of shareholder | Shareholding percentage | Total ordinary shares held at the period-end | Increase/decrease in the Reporting Period | Restricted ordinary shares held | Non-restricted ordinary shares held | Shares in pledge, marked or frozen | ||||
| Status | Shares | ||||||||||
| Shenzhen Investment Holdings Co., Ltd. | State-owned corporation | 55.78% | 564,353,838 | 0 | 0 | 564,353,838 | N/A | 0 | |||
| Shenzhen State-Owned Equity Operation and Management Co., Ltd. | Domestic non-state-owned legal person | 6.35% | 64,288,426 | 0 | 0 | 64,288,426 | N/A | 0 | |||
| Yang Jianmin | Domestic natural person | 1.19% | 12,069,817 | 932840 | 0 | 12,069,817 | N/A | 0 | |||
| Zhang Xiujuan | Domestic natural person | 0.47% | 4,760,400 | 0 | 0 | 4,760,400 | N/A | 0 | |||
| Wang Yulan | Domestic natural person | 0.46% | 4,612,991 | 185800 | 0 | 4,612,991 | N/A | 0 | |||
| Hong Kong Securities Clearing Company Ltd. | Foreign legal person | 0.43% | 4,331,445 | 184642 | 0 | 4,331,445 | N/A | 0 | |||
| He Qiao | Domestic natural person | 0.36% | 3,652,486 | -236400 | 0 | 3,652,486 | N/A | 0 | |||
| Wang Zhengying | Domestic natural person | 0.29% | 2,918,100 | 0 | 0 | 2,918,100 | N/A | 0 | |||
| Industrial and Commercial Bank of China Co., Ltd.- China Southern CSI All-Index Real Estate Traded Open-End Index Securities Investment Fund | Other | 0.27% | 2,681,800 | 593400 | 0 | 2,681,800 | N/A | 0 | |||
| Zhang Zi | Domestic natural person | 0.26% | 2,579,800 | -4900 | 0 | 2,579,800 | N/A | 0 | |||||
| Strategic investor or general legal person becoming a top-10 ordinary shareholder due to rights issue | N/A | ||||||||||||
| Related or acting-in-concert parties among the shareholders above | 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 whether there exists associated relationship among the other shareholders, or whether they are persons acting in concert as prescribed in the Administrative Measures for the Acquisition of Listed Companies. | ||||||||||||
| Explain if any of the shareholders above was involved in entrusting/being entrusted with voting rights or waiving voting rights | N/A | ||||||||||||
| Special account for share repurchases among the top 10 shareholders | N/A | ||||||||||||
| Top 10 unrestricted ordinary shareholders (exclusive of shares lent in refinancing and executive lock-in shares) | |||||||||||||
| Name of shareholder | Unrestricted ordinary shares held at the period-end | Shares by type | |||||||||||
| Type | Shares | ||||||||||||
| Shenzhen Investment Holdings Co., Ltd. | 564,353,838 | RMB ordinary shares | 564,353,838 | ||||||||||
| Shenzhen State-Owned Equity Operation and Management Co., Ltd. | 64,288,426 | RMB ordinary shares | 64,288,426 | ||||||||||
| Yang Jianmin | 12,069,817 | RMB ordinary shares | 12,069,817 | ||||||||||
| Zhang Xiujuan | 4,760,400 | RMB ordinary shares | 4,760,400 | ||||||||||
| Wang Yulan | 4,612,991 | RMB ordinary shares | 4,612,991 | ||||||||||
| Hong Kong Securities Clearing Company Ltd. | 4,331,445 | RMB ordinary shares | 4,331,445 | ||||||||||
| He Qiao | 3,652,486 | RMB ordinary shares | 3,495,600 | ||||||||||
| Domestically listed foreign shares | 156,886 | ||||||||||||
| Wang Zhengying | 2,918,100 | RMB ordinary shares | 2,918,100 | ||||||||||
| Industrial and Commercial Bank of China Co., Ltd.- China Southern CSI All-Index Real Estate Traded Open-End Index Securities Investment Fund | 2,681,800 | RMB ordinary shares | 2,681,800 | ||||||||||
| Zhang Zi | 2,579,800 | RMB ordinary shares | 2,579,800 | ||||||||||
| Related or acting-in-concert parties among top 10 unrestricted public shareholders, as well as between top 10 unrestricted public shareholders and top 10 shareholders | Among the top 10 unrestricted public 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 whether there exists associated relationship among the other shareholders, or whether they are persons acting in concert as prescribed in the Administrative Measures for the Acquisition of Listed Companies. | ||||||||||||
| Top 10 ordinary shareholders involved in securities margin trading | Among the top 10 shareholders of the Company, the third, fourth, seventh, eighth and tenth shareholders held 9,804,200 shares, 4,760,400 shares, 3,332,000 shares, 2,918,100 shares, and 2,496,600 shares in their respective credit securities accounts. | ||||||||||||
5% or greater shareholders, top 10 shareholders and Top 10 unrestricted shareholders involved in refinancing shares lending
□Applicable ? Not applicable
Changes in top 10 shareholders and top 10 unrestricted shareholders due to refinancing shares lending/return compared with theprior period
□Applicable ? Not applicable
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the
Company conducted any promissory repo during the Reporting Period.
□Yes ? No
No such cases in the Reporting Period.IV Change in Shareholdings of Directors, Supervisors and Senior Management
□Applicable ? Not applicable
No changes occurred to the shareholdings of the directors, supervisors and senior management in the Reporting Period. See the2023 Annual Report for more details.V Change of the Controlling Shareholder or the De Facto ControllerChange 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.
Part VIII Preference Shares
□Applicable ? Not applicable
No preference shares in the Reporting Period.
Part IX Bonds
□Applicable ? Not applicable
Part X. Financial StatementsI. Auditor’s ReportWhether the semi-annual report has been audited?
□ Yes √ No
The semi-annual report of the Company has not been audited.II. Financial StatementsThe 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 2024
Presented in RMB
| Items | 30 June 2024 | 1 January 2024 |
| Current assets: | ||
| Cash at bank and on hand | 615,370,205.69 | 871,019,268.83 |
| Provision of Settlement fund | ||
| Funds lent | ||
| Financial assets held for trading | 929,061,785.11 | 879,340,201.92 |
| Derivative financial assets | ||
| Notes receivable | ||
| Accounts receivable | 85,938,275.00 | 75,100,970.83 |
| Accounts receivable financing | ||
| Prepayments | 418,741.86 | 409,192.07 |
| Insurance premiums receivables | ||
| Cession premiums receivables | ||
| Provision of cession premiums | ||
| Other receivables | 16,772,800.21 | 15,893,736.28 |
| Including: Interest receivable | ||
| Dividends receivable | ||
| Recoursable Financial assets acquired | ||
| Inventories | 4,019,777,603.21 | 3,915,215,921.96 |
| Contractual assets | ||
| Assets held for sale | 6,250,878.84 | 27,352,596.92 |
| Non-current assets due within one year | ||
| Other current assets | ||
| Total current assets | 162,393,163.37 | 87,175,263.06 |
| Non-current assets: | 5,835,983,453.29 | 5,871,507,151.87 |
| Loans and payments | ||
| Debt investment | ||
| Investments in other debt |
| obligations | ||
| Long-term receivables | ||
| Long-term equity investments | ||
| Investments in other equity instrument | ||
| Other non-current financial assets | 15,060,340.13 | 14,324,411.35 |
| Investment property | ||
| Fixed assets | 528,503,549.53 | 541,542,136.17 |
| Construction in progress | 18,955,069.88 | 19,928,049.77 |
| Productive living assets | ||
| Oil and gas assets | ||
| Right-of-use assets | ||
| Intangible assets | 33,213.86 | 99,641.48 |
| Development costs | ||
| Goodwill | ||
| Long-term deferred expense | ||
| Deferred tax assets | ||
| Other non-current assets | ||
| Total non-current assets | 1,214,840.82 | 1,598,305.56 |
| Total assets | 36,401,140.78 | 36,312,811.26 |
| Current liabilities: | ||
| Short-term loans | 600,168,155.00 | 613,805,355.59 |
| Borrowings from central bank | 6,436,151,608.29 | 6,485,312,507.46 |
| Deposit funds | ||
| Financial liabilities held for trading | 10,310,396.09 | 3,550,000.00 |
| Derivative financial liabilities | ||
| Notes payable | ||
| Accounts payable | ||
| Advances from customers | ||
| Contractual liabilities | ||
| Funds from sale of financial assets with repurchase agreements | 403,762,092.10 | 443,259,768.78 |
| Deposits from customer and inter-bank | 337,777.18 | 420,724.30 |
| Funds received as an agent of stock exchange | 1,376,279,056.32 | 1,291,448,591.28 |
| Funds received as stock underwrite | ||
| Payroll payable | ||
| Tax payable | ||
| Other payables | ||
| Including: Interest payable | 23,262,410.83 | 22,247,017.36 |
| Dividends payable | 36,028,327.36 | 40,908,986.48 |
| Handling charges and commissions payable | 559,465,239.08 | 554,469,229.59 |
| Cession premiums payables | 16,535,277.94 | 16,535,277.94 |
| Liabilities held for sale | ||
| Non-current liabilities due within one year | ||
| Other current liabilities |
| Total current liabilities | ||
| Non-current liabilities: | 50,316,649.66 | 34,056,347.93 |
| Provision for insurance contracts | 132,138,332.74 | 136,364,529.76 |
| Long-term loans | 2,591,900,281.36 | 2,526,725,195.48 |
| Debentures payable | ||
| Including: Preferred shares | ||
| Perpetual bonds | 62,336,264.42 | 179,431,851.02 |
| Lease liabilities | ||
| Long-term payables | ||
| Long-term employee benefits payable | ||
| Provisions | ||
| Deferred income | ||
| Deferred tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | ||
| Total liabilities | 3,012,566.54 | 3,012,566.54 |
| Equity: | ||
| Share capital | 65,348,830.96 | 182,444,417.56 |
| Other equity instruments | 2,657,249,112.32 | 2,709,169,613.04 |
| Including: Preferred shares | ||
| Perpetual bonds | 1,011,660,000.00 | 1,011,660,000.00 |
| Capital reserves | ||
| Less: treasury shares | ||
| Other comprehensive income | ||
| Specific reserve | 978,244,910.11 | 978,244,910.11 |
| Surplus reserve | ||
| Generic Risk Reserve | 23,312,190.06 | 25,319,459.44 |
| Retained earnings | ||
| Total equity attributable to shareholders of the company | 275,253,729.26 | 275,253,729.26 |
| Non-controlling interests | ||
| Total equity | 1,406,227,176.78 | 1,400,604,385.39 |
| Total liabilities and equity | 3,694,698,006.21 | 3,691,082,484.20 |
| Items | 84,204,489.76 | 85,060,410.22 |
| Current assets: | 3,778,902,495.97 | 3,776,142,894.42 |
| Cash at bank and on hand | 6,436,151,608.29 | 6,485,312,507.46 |
Legal representative: Xiaoping Tang General Accountant:JianFei Wang The head of the accountingdepartment: Hongpu Zhou
2. Financial Position Statement of the Parent Entity
Presented in RMB
| Items | 30 June 2024 | 1 January 2024 |
| Current assets: | ||
| Cash at bank and on hand | 107,401,503.32 | 116,977,480.94 |
| Financial assets held for trading | 929,061,785.11 | 879,340,201.92 |
| Derivative financial assets | ||
| Notes receivable | ||
| Accounts receivable | 6,034,801.67 | 9,750,885.01 |
| Accounts receivable financing | ||
| Prepayments | 0.00 | 200,000.00 |
| Other receivables | 1,704,765,741.05 | 1,723,164,380.70 |
| Including: Interest receivable | ||
| Dividends receivable | 29,222,722.88 | 29,222,722.88 |
| Inventories | 321,218.69 | 315,818.69 |
| Including: Data resources | ||
| Contractual assets | ||
| Assets held for sale | ||
| Non-current assets due within one year | ||
| Other current assets | 3,365,536.87 | 810,142.59 |
| Total current assets | 2,750,950,586.71 | 2,730,558,909.85 |
| Non-current assets: | ||
| Debt investment | ||
| Investments in other debt obligations | ||
| Long-term receivables | ||
| Long-term equity investments | 1,323,365,748.39 | 1,323,365,748.39 |
| Investments in other equity instruments | 15,060,340.13 | 14,324,411.35 |
| Other non-current financial assets | ||
| Investment property | 421,519,089.86 | 433,172,839.90 |
| Fixed assets | 11,736,632.73 | 12,683,997.76 |
| Construction in progress | ||
| Productive living assets | ||
| Oil and gas assets | ||
| Right-of-use assets | ||
| Intangible assets | ||
| Development costs | ||
| Goodwill | ||
| Long-term deferred expense | 970,235.74 | 1,170,295.66 |
| Deferred tax assets | 792,735.07 | 792,735.07 |
| Other non-current assets | ||
| Total non-current assets | 1,773,444,781.92 | 1,785,510,028.13 |
| Total assets | 4,524,395,368.63 | 4,516,068,937.98 |
| Current liabilities: | ||
| Short-term loans | ||
| Financial liabilities held for trading | ||
| Derivative financial liabilities | ||
| Notes payable | ||
| Accounts payable | 11,437,096.98 | 17,535,100.83 |
| Advances from customers | ||
| Contractual liabilities | 88,985.71 | 88,985.71 |
| Payroll payable | 14,903,166.51 | 13,431,614.17 |
| Tax payable | 24,289,577.21 | 28,060,321.09 |
| Other payables | 771,459,948.32 | 759,312,118.85 |
| Including: Interest payable | 16,535,277.94 | 16,535,277.94 |
| Dividends payable |
| Liabilities held for sale | ||
| Non-current liabilities due within one year | 125,173.20 | 375,269.30 |
| Other current liabilities | 4,449.29 | 4,449.29 |
| Total current liabilities | 822,308,397.22 | 818,807,859.24 |
| Non-current liabilities: | ||
| Long-term loans | 62,336,264.42 | 62,398,851.02 |
| Debentures payable | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities | ||
| Long-term payables | ||
| Long-term employee benefits payable | ||
| Provisions | ||
| Deferred income | ||
| Deferred tax liabilities | 3,012,566.54 | 3,012,566.54 |
| Other non-current liabilities | ||
| Total non-current liabilities | 65,348,830.96 | 65,411,417.56 |
| Total liabilities | 887,657,228.18 | 884,219,276.80 |
| 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 | 2,479,237.29 | 1,743,308.51 |
| Specific reserve | ||
| Surplus reserve | 252,124,115.85 | 252,124,115.85 |
| Retained earnings | 1,405,762,856.18 | 1,401,610,305.69 |
| Total equity | 3,636,738,140.45 | 3,631,849,661.18 |
| Total liabilities and equity | 4,524,395,368.63 | 4,516,068,937.98 |
3. Consolidated Statement of Profit or Loss and Other Comprehensive Income
Presented in RMB
| Items | 6 months ended 30 June 2024 | 6 months ended 30 June 2023 |
| 1. Revenue | 134,225,119.43 | 263,616,779.07 |
| Including: Operating revenue | 134,225,119.43 | 263,616,779.07 |
| Interest income | ||
| Insurance premium income | ||
| Handling charge and commission income | ||
| 2. Expenses | 141,726,383.25 | 310,757,866.31 |
| Including: operating expenses | 107,432,457.51 | 217,229,426.83 |
| Interest expense | ||
| Handling charge and commission expense | ||
| Refund of Insurance premium |
| Net payment for insurance claims | ||
| Net provision for insurance contracts | ||
| Commissions on insurance polices | ||
| Cession charges | ||
| Taxes and surcharges | 6,931,500.13 | 61,896,867.56 |
| Selling and distribution expense | 5,445,739.08 | 8,790,640.18 |
| General and administrative expenses | 27,071,704.47 | 23,453,199.45 |
| Research and development expense | ||
| Financial expense | -5,155,017.94 | -612,267.71 |
| Including: Interest expense | 888,171.77 | |
| Interest income | 4,839,207.82 | 716,366.12 |
| Add: Other income | 83,011.12 | 123,732.31 |
| Investment income (“-” for losses) | 777,600.00 | 1,806,314.48 |
| 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 (“-” for losses) | 9,721,583.19 | 3,477,115.56 |
| Credit impairment loss (“-” for loss) | -28,831.96 | 529,176.78 |
| Impairment losses (“-” for losses) | 652,630.46 | |
| Gains from assets disposal (“-” for losses) | 223,872.34 | 0.00 |
| 3. Operating profit (“-” for loss) | 3,928,601.33 | -41,204,748.11 |
| Add: Non-operating income | 1,188,528.59 | 17,476.72 |
| Less: Non-operating expense | 30,183.63 | 51,480.63 |
| 4. Profit before income tax (“-” for losses) | 5,086,946.29 | -41,238,752.02 |
| Less: Income tax expense | 218,507.36 | -2,580,629.05 |
| 5. Net profit for the year (“-” for net losses) | 4,868,438.93 | -38,658,122.97 |
| 5.1 Classification according to operation continuity |
| 5.1.1 Net profit from continuing operations (“-” for net loss) | 4,868,438.93 | -38,658,122.97 |
| 5.1.2Net profit from discontinued operations (“-” for net loss) | ||
| 5.2 Classification according to attribute | ||
| 5.2.1 Members of the parent shareholders ("-" for net loss) | 5,622,791.39 | -37,118,182.81 |
| 5.2.2 Non-controlling interests (“-” for net loss) | -754,352.46 | -1,539,940.16 |
| 6. Other comprehensive income (net of tax) | -2,108,837.38 | -2,683,340.99 |
| Other comprehensive income (net of tax) attributable to members of the parent entity | -2,007,269.38 | -1,772,722.17 |
| 6.1 Other comprehensive income Items that will not be reclassified subsequently to profit or loss | 735,928.78 | 352,055.06 |
| 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 method | ||
| 6.1.3 Changes in the fair value of investments in other equity instruments | 735,928.78 | 352,055.06 |
| 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 or loss | -2,743,198.16 | -2,124,777.23 |
| 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 currency financial statements | -2,743,198.16 | -2,124,777.23 |
| 6.2.7 Other | ||
| Other comprehensive income (net of tax) attributable to non-controlling interests | -101,568.00 | -910,618.82 |
| 7. Total comprehensive income for the period | 2,759,601.55 | -41,341,463.96 |
| Attributable to members of parent entity | 3,615,522.01 | -38,890,904.98 |
| Attributable to non-controlling interests | -855,920.46 | -2,450,558.98 |
| 8. Earnings per share | ||
| 8.1 Basic earnings per share | 0.0056 | -0.0367 |
| 8.2 Diluted earnings per share | 0.0056 | -0.0367 |
In a business combination involving enterprises under common control, (net losses)/net profit of combinedparties before the combination date is RMB 0.00, and (net losses)/net profit of combined parties in prior periodis RMB 0.00.Legal representative: Xiaoping Tang General Accountant:JianFei Wang The head of the accountingdepartment: Hongpu Zhou
4. Statement of Profit or Loss and Other Comprehensive Income For the Parent Entity
Presented in RMB
| Items | 2024 | 6 months ended 30 June 2023 |
| 1. Revenue | 32,477,256.72 | 45,811,654.36 |
| Less: Cost of sales | 14,063,038.19 | 14,351,721.51 |
| Taxes and surcharges | 5,603,750.17 | 4,234,420.47 |
| Selling and distribution expense | 956,228.79 | 620,765.04 |
| General and administrative expenses | 19,465,929.66 | 12,792,471.19 |
| Research and development expense | ||
| Financial expense | -1,057,897.78 | -5,557,837.05 |
| Including: Interest expense | 887,841.14 | |
| Interest income | 670,547.22 | |
| Add: Other income | 79,381.82 | 68,844.09 |
| Investment income (“-” for losses) | 777,600.00 | 1,806,314.48 |
| 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 (“-” for losses) | 9,721,583.19 | 3,477,115.56 |
| Credit impairment loss (“-” for loss) | 448,326.78 | |
| Impairment losses (“-” for losses) | ||
| Gains from assets disposal (“-” for losses) | 223,872.34 | |
| 2. Operating profit (“-” for loss) | 4,248,645.04 | 25,170,714.11 |
| Add: Non-operating income | 0.09 | 4,745.37 |
| Less: Non-operating expense | 30,000.00 | 50,894.08 |
| 3. Profit before income tax (“-” for losses) | 4,218,645.13 | 25,124,565.40 |
| Less: Income tax expense | 66,094.64 | -869,186.92 |
| 4. Net profit for the year (“-” for net losses) | 4,152,550.49 | 25,993,752.32 |
| 4.1 Net profit from continuing operations (“-” for net loss) | 4,152,550.49 | 25,993,752.32 |
| 4.2 Net profit from discontinued operations (“-” for net losses) | ||
| 5. Other comprehensive income, net of tax | 735,928.78 | 352,055.06 |
| 5.1 Other comprehensive income Items that will not be reclassified subsequently to profit or loss | 735,928.78 | 352,055.06 |
| 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 equity instruments | 735,928.78 | 352,055.06 |
| 5.1.4 Changes in the fair value of the company’s credit risks | ||
| 5.1.5 Other | ||
| 5.2 Other comprehensive income Items that may be reclassified subsequently to profit or loss | ||
| 5.2.1 Other comprehensive income can be transferred to profit or loss under equity method | ||
| 5.2.2 Changes in the fair value of investments in other debt obligations |
| 5.2.3 Other comprehensive income arising from the reclassification of financial assets | ||
| 5.2.4 Provision for credit impairments in other debt investment | ||
| 5.2.5 Effective portion of gains or losses arising from cash flow hedging instruments | ||
| 5.2.6 Translation differences arising from translation of foreign currency financial statements | ||
| 5.2.7 Other | ||
| 6. Total comprehensive income for the period | 4,888,479.27 | 26,345,807.38 |
| 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
| Items | 6 months ended 30 June 2024 | 6 months ended 30 June 2023 |
| 1. Cash flows from operating activities: | ||
| Proceeds from sales of goods | 241,759,518.54 | 164,207,230.02 |
| 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 | 2,101,600.10 | 1,186,861.59 |
| Proceeds from other operating activities | 49,455,585.99 | 74,221,616.32 |
| Sub-total of cash inflows | 293,316,704.63 | 239,615,707.93 |
| Payment for goods and services | 209,737,359.76 | 60,457,437.30 |
| Net increase in loans and payments on behalf | ||
| Net increase in deposits in central bank and inter-bank | ||
| Payments of claims for original insurance contracts | ||
| Net increase in fund paid | ||
| Interest, handling charges and Interest | ||
| Commissions on issuance policies paid | ||
| Payment to and for employees | 36,582,617.63 | 36,762,506.08 |
| Payments of various taxes | 86,650,542.16 | 193,176,702.79 |
| Payment for other operating activities | 68,795,717.14 | 141,360,009.80 |
| Sub-total of cash outflows | 401,766,236.69 | 431,756,655.97 |
| Net cash flows from operating activities | -108,449,532.06 | -192,140,948.04 |
| 2. Cash flows from investing activities: | ||
| Proceeds from disposal of investments | ||
| Investment returns received | 777,600.00 | 1,644,822.69 |
| Net proceeds from disposal of fixed assets, intangible assets and other long-term assets | 4,269.60 | |
| Net proceeds from disposal of subsidiaries and other business units | ||
| Proceeds from other investing activities | 136,800,000.00 | |
| Sub-total of cash inflows | 777,600.00 | 138,449,092.29 |
| Payment for acquisition of fixed assets, intangible assets and other long-term assets | 41,736.06 | 251,357.46 |
| 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 | 40,000,000.00 | |
| Sub-total of cash outflows | 40,041,736.06 | 251,357.46 |
| Net cash flows from investing activities | -39,264,136.06 | 138,197,734.83 |
| 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 | 100,376,586.60 | |
| Payment for dividends, profit distributions or interest | 3,507,919.09 | 63,399,744.75 |
| 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 | 103,884,505.69 | 63,399,744.75 |
| Net cash flows from financing activities | -103,884,505.69 | 38,186,866.07 |
| 4. Effect of foreign exchange rate changes on cash and cash equivalents | 2,485.19 | 172,392.24 |
| 5. Net increase in cash and cash equivalents | -251,595,688.62 | -15,583,954.90 |
| Add: Cash and cash equivalents as at the year beginning | 859,146,413.35 | 190,365,069.48 |
| 6. Cash and cash equivalent as at the year end | 607,550,724.73 | 174,781,114.58 |
6. Cash Flow Statement of the Company as the Parent
Presented in RMB
| Items | 6 months ended 30 June 2024 | 6 months ended 30 June 2023 |
| 1. Cash flows from operating activities: | ||
| Proceeds from sales of goods | 38,235,476.73 | 55,240,004.34 |
| Refund of taxes | 83,084.73 | 1,143,272.60 |
| Proceeds from other operating activities | 44,933,222.51 | 40,177,648.86 |
| Sub-total of cash inflows | 83,251,783.97 | 96,560,925.80 |
| Payment for goods and services | 172,735.64 | 2,806,232.29 |
| Payment to and for employees | 20,556,317.11 | 21,711,708.29 |
| Payments of various taxes | 14,183,984.15 | 132,822,106.11 |
| Payment for other operating activities | 17,276,926.85 | 51,390,420.56 |
| Sub-total of cash outflows | 52,189,963.75 | 208,730,467.25 |
| Net cash flows from operating activities | 31,061,820.22 | -112,169,541.45 |
| 2. Cash flows from investing activities: | ||
| Proceeds from disposal of investments | ||
| Investment returns received | 777,600.00 | 6,644,822.69 |
| Net proceeds from disposal of fixed assets, intangible assets and other long-term assets | ||
| Net proceeds from disposal of subsidiaries and other business units | ||
| Proceeds from other investing activities | 136,800,000.00 | |
| Sub-total of cash inflows | 777,600.00 | 143,444,822.69 |
| Payment for acquisition of fixed assets, intangible assets and other long-term assets | 4,699.00 | 213,690.10 |
| Payment for acquisition of investments | ||
| Net payment for acquisition of subsidiaries and other business units | ||
| Payment for other investing activities | 40,210,000.00 | 14,320,000.00 |
| Sub-total of cash outflows | 40,214,699.00 | 14,533,690.10 |
| Net cash flows from investing activities | -39,437,099.00 | 128,911,132.59 |
| 3. Cash flows from financing activities: | ||
| Proceeds from investors | ||
| Proceeds from borrowings | 62,586,610.82 | |
| Proceeds from other financing activities | ||
| Sub-total of cash inflows | 62,586,610.82 | |
| Repayments of borrowings | 62,586.60 | |
| Payment for dividends, profit distributions or interest | 1,137,937.24 | 61,711,260.00 |
| Payment for other financing activities | ||
| Sub-total of cash outflows | 1,200,523.84 | 61,711,260.00 |
| Net cash flows from financing activities | -1,200,523.84 | 875,350.82 |
| 4. Effect of foreign exchange rate changes on cash and cash equivalents | ||
| 5. Net increase in cash and cash equivalents | -9,575,802.62 | 17,616,941.96 |
| Add: Cash and cash equivalents as at the year beginning | 115,075,974.85 | 90,800,999.60 |
| 6. Cash and cash equivalent as at the year end | 105,500,172.23 | 108,417,941.56 |
7. Consolidated Statement Of Changes in Equity
Amount for the current period
Presented in RMB
| Items | 6 months ended 30 June 2024 | ||||||||||||||
| Attributable to shareholders’ equity of the parent company | Non-controlling interests | Total equity | |||||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: treasury shares | Other comprehensive income | Specific reserve | Surplus reserve | Generic Risk Reserve | Retained earnings | Other | Subtotal | |||||
| Preference shares | Perpetual bond | Other | |||||||||||||
| I. Balance at the end of last year | 1,011,660,000.00 | 978,244,910.11 | 25,319,459.44 | 275,253,729.26 | 1,400,604,385.39 | 3,691,082,484.20 | 85,060,410.22 | 3,776,142,894.42 | |||||||
| Add: Changes of | |||||||||||||||
| accounting policies | |||||||||||||||
| Correction of prior period errors | |||||||||||||||
| Other | |||||||||||||||
| II. Balance at the Beginning of the Year | 1,011,660,000.00 | 978,244,910.11 | 25,319,459.44 | 275,253,729.26 | 1,400,604,385.39 | 3,691,082,484.20 | 85,060,410.22 | 3,776,142,894.42 | |||||||
| III. Changes in equity during the year (“- “for decrease) | -2,007,269.38 | 5,622,791.39 | 3,615,522.01 | -855,920.46 | 2,759,601.55 | ||||||||||
| (I) Total comprehensive income | -2,007,269.38 | 5,622,791.39 | 3,615,522.01 | -855,920.46 | 2,759,601.55 | ||||||||||
| (II) Shareholder’s contributions and decrease of capital | |||||||||||||||
| 1.Contribution by ordinary shareholders | |||||||||||||||
| 2. Holders of other equity instruments invested capital | |||||||||||||||
| 3. Equity settled share-based payments | |||||||||||||||
| 4．Other | |||||||||||||||
| (III) Appropriation of profits | |||||||||||||||
| 1.Appropriation for |
| surplus reserves | |||||||||||||||
| 2.Appropriation for general reserves | |||||||||||||||
| 3.Distribution to shareholders | |||||||||||||||
| 4．Other | |||||||||||||||
| (IV)Transfer 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. Remeasurement of defined benefit plan liability orasset transfer to retained earnings | |||||||||||||||
| 5. Other comprehensive income carried forward to retained earnings | |||||||||||||||
| 6．Other | |||||||||||||||
| (V) Special Reserve | |||||||||||||||
| 1.Appropriation during the year |
| 2.Utilization during the year | |||||||||||||||
| (VI) Others | |||||||||||||||
| IV. Balance at the end of the period | 1,011,660,000.00 | 978,244,910.11 | 23,312,190.06 | 275,253,729.26 | 1,406,227,176.78 | 3,694,698,006.21 | 84,204,489.76 | 3,778,902,495.97 |
Amount for the prior period
Presented in RMB
| Items | 6 months ended 30 June 2023 | ||||||||||||||
| Attributable to shareholders’ equity of the parent company | Non-controlling interests | Total equity | |||||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: treasury shares | Other comprehensive income | Specific reserve | Surplus reserve | Generic Risk Reserve | Retained earnings | Other | Subtotal | |||||
| Preference shares | Perpetual bond | Other | |||||||||||||
| I. Balance at the end of last year | 1,011,660,000.00 | 978,244,910.11 | 25,926,720.85 | 275,253,729.26 | 1,713,155,187.48 | 4,004,240,547.70 | 282,301,229.97 | 4,286,541,777.67 | |||||||
| Add: Changes of accounting policies | |||||||||||||||
| Correction of prior period errors | |||||||||||||||
| Other | |||||||||||||||
| II. Balance at the Beginning of the Year | 1,011,660,000.00 | 978,244,910.11 | 25,926,720.85 | 275,253,729.26 | 1,713,155,187.48 | 4,004,240,547.70 | 282,301,229.97 | 4,286,541,777.67 | |||||||
| III. Changes in equity during the year (“- “for decrease) | -1,772,722.17 | -98,829,442.81 | -100,602,164.98 | -2,450,558.98 | -103,052,723.96 | ||||||||||
| (I) Total comprehen | -1,7 | -37, | -38, | -2,4 | -41, | ||||||||||
| sive income | 72,722.17 | 118,182.81 | 890,904.98 | 50,558.98 | 341,463.96 | ||||||||||
| (II) Shareholder’s contributions and decrease of capital | |||||||||||||||
| 1.Contribution by ordinary shareholders | |||||||||||||||
| 2. Holders of other equity instruments invested capital | |||||||||||||||
| 3. Equity settled share-based payments | |||||||||||||||
| 4．Other | |||||||||||||||
| (III) Appropriation of profits | -61,711,260.00 | -61,711,260.00 | -61,711,260.00 | ||||||||||||
| 1.Appropriation for surplus | |||||||||||||||
| 1.Appropriation for general reserves | |||||||||||||||
| 3.Distribution to shareholders | -61,711,260.00 | -61,711,260.00 | -61,711,260.00 | ||||||||||||
| 4．Other | |||||||||||||||
| (IV)Transfer 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. Remeasurement of defined benefit plan liability orasset transfer to retained earnings | |||||||||||||||
| 5. Other comprehensive income carried forward to retained earnings | |||||||||||||||
| 6．Other | |||||||||||||||
| (V) Special Reserve | |||||||||||||||
| 1. Appropriation during the year | |||||||||||||||
| 2.Utilization during the year | |||||||||||||||
| (VI) Others | |||||||||||||||
| IV. Balance at the end of the period | 1,011,660,000.00 | 978,244,910.11 | 24,153,998.68 | 275,253,729.26 | 1,614,325,744.67 | 3,903,638,382.72 | 279,850,670.99 | 4,183,489,053.71 |
8. Consolidated Statement Of Changes in Equity Of The Parent Entity
Amount for the current period
Presented in RMB
| Items | 6 months ended 30 June 2024 | |||||||||||
| Share capital | Other equity instruments | Capital reser | Less: treasury | Other comprehen | Specific reser | Surplus reser | Retained earni | Other | Total equity | |||
| Prefe | Perpe | Other | ||||||||||
| rence shares | tual bonds | ves | shares | sive income | ve | ve | ngs | |||||
| I. Balance at the end of last year | 1,011,660,000.00 | 964,711,931.13 | 1,743,308.51 | 252,124,115.85 | 1,401,610,305.69 | 3,631,849,661.18 | ||||||
| Add: Changes of accounting policies | ||||||||||||
| Correction of prior period errors | ||||||||||||
| Other | ||||||||||||
| II. Balance at the Beginning of the Year | 1,011,660,000.00 | 964,711,931.13 | 1,743,308.51 | 252,124,115.85 | 1,401,610,305.69 | 3,631,849,661.18 | ||||||
| III. Changes in equity during the year (“- “for decrease) | 735,928.78 | 4,152,550.49 | 4,888,479.27 | |||||||||
| (I) Total comprehensive income | 735,928.78 | 4,152,550.49 | 4,888,479.27 | |||||||||
| (II) Shareholder’s contributions and decrease of capital | ||||||||||||
| 1.Contribution by ordinary shareholders | ||||||||||||
| 2. Holders of other equity instruments invested capital | ||||||||||||
| 3. Equity settled share-based payments | ||||||||||||
| 4．Other |
| (III) Appropriation of profits | ||||||||||||
| 1.Appropriation for surplus | ||||||||||||
| 2.Distribution to shareholders | ||||||||||||
| 3．Other | ||||||||||||
| (IV)Transfer 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. Remeasurement of defined benefit plan liability orasset transfer to retained earnings | ||||||||||||
| 5. Other comprehensive income carried forward to retained earnings | ||||||||||||
| 6．Other | ||||||||||||
| (V) Special Reserve | ||||||||||||
| 1. Appropriati |
| on during the year | ||||||||||||
| 2.Utilization during the year | ||||||||||||
| (VI) Others | ||||||||||||
| IV. Balance at the end of the period | 1,011,660,000.00 | 964,711,931.13 | 2,479,237.29 | 252,124,115.85 | 1,405,762,856.18 | 3,636,738,140.45 |
Amount for the prior period
Presented in RMB
| Items | 6 months ended 30 June 2023 | |||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: treasury shares | Other comprehensive income | Specific reserve | Surplus reserve | Retained earnings | Other | Total equity | |||
| Preference shares | Perpetual bonds | Other | ||||||||||
| I. Balance at the end of last year | 1,011,660,000.00 | 964,711,931.13 | 1,379,426.68 | 252,124,115.85 | 1,692,510,832.80 | 3,922,386,306.46 | ||||||
| Add: Changes of accounting policies | ||||||||||||
| Correction of prior period errors | ||||||||||||
| Other | ||||||||||||
| II. Balance at the Beginning of the Year | 1,011,660,000.00 | 964,711,931.13 | 1,379,426.68 | 252,124,115.85 | 1,692,510,832.80 | 3,922,386,306.46 | ||||||
| III. Changes in equity during the year (“- “for decrease) | 352,055.06 | -35,717,507.68 | -35,365,452.62 | |||||||||
| (I) Total comprehensive income | 352,055.06 | 25,993,752.32 | 26,345,807.38 | |||||||||
| (II) Shareholder’s contributions and decrease of | ||||||||||||
| capital | ||||||||||||
| 1.Contribution by ordinary shareholders | ||||||||||||
| 2. Holders of other equity instruments invested capital | ||||||||||||
| 3. Equity settled share-based payments | ||||||||||||
| 4．Other | ||||||||||||
| (III) Appropriation of profits | -61,711,260.00 | -61,711,260.00 | ||||||||||
| 1.Appropriation for surplus | ||||||||||||
| 2.Distribution to shareholders | -61,711,260.00 | -61,711,260.00 | ||||||||||
| 3．Other | ||||||||||||
| (IV)Transfer 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. Remeasurement of defined benefit plan |
| liability orasset transfer to retained earnings | ||||||||||||
| 5. Other comprehensive income carried forward to retained earnings | ||||||||||||
| 6．Other | ||||||||||||
| (V) Special Reserve | ||||||||||||
| 1. Appropriation during the year | ||||||||||||
| 2.Utilization during the year | ||||||||||||
| (VI) Others | ||||||||||||
| IV. Balance at the end of the period | 1,011,660,000.00 | 964,711,931.13 | 1,731,481.74 | 252,124,115.85 | 1,656,793,325.12 | 3,887,020,853.84 |
III. Company profileShenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. (the “Company”) was establishedunder the approval of General Office of the Shenzhen Municipal People’s Government, and was reorganizedinto a limited liability company by shares on the basis of the former Shenzhen Special Economic Zone RealEstate and Properties Corporation. The Company was registered at Shenzhen Administration for Industry andCommerce in July 1993 and headquartered in Shenzhen City, Guangdong Province. The Company currentlyholds a business license with unified social credit code of 91440300192179585N, with registered capital of1,011,660,000.00yuan, total share of 1,011,660,000 shares (each with par value of one yuan), of which,891,660,000 shares and 120,000,000 shares are unrestricted outstanding A shares and B shares, respectively.The Company’s shares were listed on the Shenzhen Stock Exchange respectively on September 15, 1993 andJanuary 10, 1994.Shenzhen Investment Holdings Co., Ltd. is a wholly state-owned limited liability company established onOctober 13, 2004 through the merger of its original major shareholder Shenzhen Construction InvestmentHoldings Co., Ltd. and two other municipal asset management companies according to the “Decision on theEstablishment of Shenzhen Investment Holdings Co., Ltd.” (Shen Guo Zi Wei [2004] No. 223) issued by State-owned Assets Supervision and Management Commission of Shenzhen Municipal People’s Government. TheCompany’s equity transfer thereof was approved by the document numbered Guo Zi Chan Quan [2005] 689issued by State-owned Assets Supervision and Administration Commission of the State Council, and thecorresponding obligation of tender offer was exempted under the approval of the document numbered Zhen JianGong Si Zi [2005] 116 issued by China Securities Regulatory Commission, and it was registered at ChinaSecurities Depository and Clearing Co., Ltd. Shenzhen Branch on February 15, 2006. As of the balance sheetdate, Shenzhen Investment Holdings Co., Ltd. held 564,353,838 shares of the Company (accounting for 55.78%of the total share capital of the Company), all of which were unrestricted shares.
The Company belongs to the real estate industry and is mainly engaged in real estate development andcommercial housing sales, property leasing and management, commodity retail and trade, hotel business,equipment installation and maintenance, construction, interior decoration, etc.The financial statements were approved and authorized for issue by the eleventh meeting of the eighth sessionof the Board of Directors dated August 23, 2024.IV. Preparation basis of the financial statements
1. Basis of preparation
The financial statements have been prepared on the basis of going concern.
2. Assessment of the ability to continue as a going concern
The Company has no events or conditions that may cast significant doubts upon the Company’s ability tocontinue as a going concern within the 12 months after the balance sheet date.V. Significant accounting policies and estimatesImportant notes for accounting policies and estimates:
The Company has set up accounting policies and estimates on transactions or events such as impairment offinancial instruments, inventories, depreciation of fixed assets, construction in progress, intangible assets,revenue recognition, etc., based on the Company’s actual production and operation features.
1. Statement of compliance
The financial statements have been prepared in accordance with the requirements of China AccountingStandards for Business Enterprises(CASBEs), and present truly and completely the financial position, financialperformance and cash flows of the Company.
2. Accounting period
The accounting year of the Company runs from January 1 to December 31 under the Gregorian calendar.
3. Operating cycle
The Company has a relatively short operating cycle for its business, an asset or a liability is classified as currentif it is expected to be realized or due within 12 months. The operating cycle for real estate industry starts fromthe development of property and ends at sales, which normally extends over 12 months and is subject to specificprojects, therefore, an asset or a liability is classified as current if it is expected to be realized or due within suchoperating cycle.
4. Functional currency
The functional currency of the Company and its subsidiaries in Hong Kong SAR is Renminbi (RMB) Yuan,while the functional currency of subsidiary Great Wall Estate Company, Inc. engaged in overseas operations isthe currency of the primary economic environment in which they operate. The currency used by the Companyin the preparation of the financial statements is RMB yuan.
5. Determination method and basis for selection of materiality
?Applicable □Inapplicable
| Disclosed Items involving materiality | Determination method and basis for selection of materiality |
| judgments | |
| Significant accounts receivable with provision for bad debts made on an individual basis | Accounts receivable with single amount in excess of 0.1% of total assets are identified as significant accounts receivable with provision made on an individual basis. |
| Significant provisions for bad debts of accounts receivable collected or reversed | Provisions for bad debts of accounts receivable reversed with single amount in excess of 0.1% of total assets are identified as significant provisions for bad debts of accounts receivable collected or reversed. |
| Significant other receivables with provision for bad debts made on an individual basis | Other receivables with single amount in excess of 0.1% of total assets are identified as significant other receivables with provision made on an individual basis. |
| Significant accounts payable with age over one year | Accounts payable with age over one year with single amount in excess of 0.1% of total assets are identified as significant accounts payable with age over one year. |
| Significant other payables with age over one year | Other payables with age over one year with single amount in excess of 0.1% of total assets are identified as significant other payables with age over one year. |
| Significant cash flows from investing activities | Cash flows from investing activities with single amount in excess of 0.1% of total assets are identified as significant cash flows from investing activities. |
| Significant subsidiaries, not wholly-owned subsidiaries | Subsidiaries with total assets/total revenue/profit before tax in excess of 0.1% of the group’s total assets/total revenue/profit before tax are identified as significant subsidiaries/significant not wholly-owned subsidiaries. |
| Significant contingencies | Contingencies with single amount in excess of 0.1% of total assets are identified as significant contingencies. |
| Significant events subsequent to the balance sheet date | Events subsequent to the balance sheet date with single amount in excess of 0.1% of total assets are identified as significant events subsequent to the balance sheet date. |
6. Accounting treatments of business combination under and not under common control
(1) Accounting treatment of business combination under common control
Assets and liabilities arising from business combination are measured at carrying amount of the combined partyincluded in the consolidated financial statements of the ultimate controlling party at the combination date.Difference between carrying amount of the equity of the combined party included in the consolidated financialstatements of the ultimate controlling party and that of the combination consideration or total par value ofshares issued is adjusted to capital reserve, if the balance of capital reserve is insufficient to offset, any excess isadjusted to retained earnings.
(2) Accounting treatment of business combination not under common control
When combination cost is in excess of the fair value of identifiable net assets obtained from the acquiree at theacquisition date, the excess is recognized as goodwill; otherwise, the fair value of identifiable assets, liabilitiesand contingent liabilities, and the measurement of the combination cost are reviewed, then the difference isrecognized in profit or loss.
7. Judgement criteria for control and compilation method of consolidated financial statements
(1) Judgement of control
An investor controls an investee if and only if the investor has all the following: (1) power over the investee; (2)exposure, or rights, to variable returns from its involvement with the investee; and (3) the ability to use itspower over the investee to affect the amount of the investor’s returns.
(2) Compilation method of consolidated financial statements
The parent company brings all its controlled subsidiaries into the consolidation scope. The consolidatedfinancial statements are compiled by the parent company according to“CASBE 33-Consolidated FinancialStatements”, based on relevant information and the financial statements of the parent company and itssubsidiaries.
8. Classification of joint arrangements and accounting treatment of joint operations
(1) Joint arrangements include joint operations and joint ventures.
(2) When the Company is a joint operator of a joint operation, it recognizes the following Items in relation to itsinterest in a joint operation:
A. its assets, including its share of any assets held jointly;B. its liabilities, including its share of any liabilities incurred 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 assets by the joint operation; andE. its expenses, including its share of any expenses incurred jointly.
9. Recognition criteria of cash and cash equivalents
Cash as presented in cash flow statement refers to cash on hand and deposit on demand for payment. Cashequivalents refer to short-term, highly liquid investments that can be readily converted to cash and that aresubject to an insignificant risk of changes in value.
10. Foreign currency translation
(1) Translation of transactions denominated in foreign currency
Transactions denominated in foreign currency are translated into RMB yuan at the spot exchange rate at thetransaction date at initial recognition. At the balance sheet date, monetary Items denominated in foreigncurrency are translated at the spot exchange rate at the balance sheet date with difference, except for thosearising from the principal and interest of exclusive borrowings eligible for capitalization, included in profit orloss; non-cash Items carried at historical costs are translated at the spot exchange rate at the transaction date,with the RMB amounts unchanged; non-cash Items carried at fair value in foreign currency are translated at thespot exchange rate at the date when the fair value was determined, with difference included in profit or loss orother comprehensive income.
(2) Translation of financial statements measured in foreign currency
The assets and liabilities in the balance sheet are translated into RMB at the spot exchange rate at the balancesheet date; the equity Items, other than undistributed profit, are translated at the spot exchange rate at thetransaction date; the revenues and expenses in the income statement are translated into RMB at the approximateexchange rate similar to the spot exchange rate at the transaction date. The difference arising from theaforementioned foreign currency translation is included in other comprehensive income.
11. Financial instruments
(1) Classification of financial assets and financial liabilities
Financial assets are classified into the following three categories when initially recognized: a. financial assets atamortized cost; b. financial assets at fair value through other comprehensive income; c. financial assets at fairvalue through profit or loss.Financial liabilities are classified into the following four categories when initially recognized: a. financialliabilities at fair value through profit or loss; b. financial liabilities that arise when a transfer of a financial assetdoes not qualify for derecognition or when the continuing involvement approach applies; c. financial guaranteecontracts not fall within the above categories a. and b. , and commitments to provide a loan at a below-marketinterest rate, which do not fall within the above category a. ; d. financial liabilities at amortized cost.
(2) Recognition criteria, measurement method and derecognition of financial assets and financial liabilities
1) Recognition criteria and measurement method of financial assets and financial liabilitiesWhen the Company becomes a party to a financial instrument, it is recognized as a financial asset or financialliability. The financial assets and financial liabilities initially recognized by the Company are measured at fairvalue; for the financial assets and liabilities at fair value through profit or loss, the transaction expenses thereofare directly included in profit or loss; for other categories of financial assets and financial liabilities, thetransaction expenses thereof are included into the initially recognized amount. However, at initial recognition,for accounts receivable that do not contain a significant financing component or in circumstances where theCompany does not consider the financing components in contracts within one year, they are measured at thetransaction price in accordance with “CASBE 14 – Revenues”.
2) Subsequent measurement of financial assets
Financial assets measured at amortized costThe Company measures its financial assets at the amortized costs using effective interest method. Gains orlosses on financial assets that are measured at amortized cost and are not part of hedging relationships shall beincluded into profit or loss when the financial assets are derecognized, reclassified, amortized using effectiveinterest method or recognized with impairment loss.Debt instrument investments at fair value through other comprehensive incomeThe Company measures its debt instrument investments at fair value. Interests, impairment gains or losses, andgains and losses on foreign exchange that calculated using effective interest method shall be included into profitor loss, while other gains or losses are included into other comprehensive income. Accumulated gains or lossesthat initially recognized as other comprehensive income should be transferred out into profit or loss when thefinancial assets are derecognized.Equity instrument investments at fair value through other comprehensive incomeThe Company measures its equity instrument investments at fair value. Dividends obtained (other than those aspart of investment cost recovery) shall be included into profit or loss, while other gains or losses are includedinto other comprehensive income. Accumulated gains or losses that initially recognized as other comprehensiveincome should be transferred out into retained earnings when the financial assets are derecognized.Financial assets at fair value through profit or lossThe Company measures its financial assets at fair value. Gains or losses arising from changes in fair value(including interests and dividends) shall be included into profit or loss, except for financial assets that are partof hedging relationships.
(3) Subsequent measurement of financial liabilities
1) Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include held-for-trading financial liabilities (includingderivatives that are liabilities) and financial liabilities designated as at fair value through profit or loss. TheCompany measures such kind of liabilities at fair value. The amount of changes in the fair value of the financialliabilities that are attributable to changes in the Company’s own credit risk shall be included into othercomprehensive income, unless such treatment would create or enlarge accounting mismatches in profit or loss.Other gains or losses on those financial liabilities (including interests, changes in fair value that are attributableto reasons other than changes in the Company’s own credit risk) shall be included into profit or loss, except forfinancial liabilities that are part of hedging relationships. Accumulated gains or losses that originally recognizedas other comprehensive income should be transferred out into retained earnings when the financial liabilities arederecognized.
2) b. Financial liabilities that arise when a transfer of a financial asset does not qualify for derecognitionor when the continuing involvement approach appliesThe Company measures its financial liabilities in accordance with “CASBE 23 – Transfer of Financial Assets”.
3) Financial guarantee contracts not fall within the above categories 1) and 2), and commitments toprovide a loan at a below-market interest rate, which do not fall within the above category 1)The Company measures its financial liabilities at the higher of: a. the amount of loss allowances in accordancewith impairment requirements of financial instruments; b. the amount initially recognized less the amount ofaccumulated amortization recognized in accordance with “CASBE 14 – Revenues”.
4) Financial liabilities at amortized cost
The Company measures its financial liabilities at amortized cost using effective interest method. Gains or losseson financial liabilities that are measured at amortized cost and are not part of hedging relationships shall beincluded into profit or loss when the financial liabilities are derecognized and amortized using effective interestmethod.
5) Derecognition of financial assets and financial liabilities
Financial assets are derecognized when:
①
The contractual rights to the cash flows from the financial assets expire; or②
The financial assets have been transferred and the transfer qualifies for derecognition in accordancewith “CASBE 23 – Transfer of Financial Assets”.Only when the underlying present obligations of a financial liability are relieved totally or partly may the financialliability be derecognized accordingly.
(4) Recognition criteria and measurement method of financial assets transfer
Where the Company has transferred substantially all of the risks and rewards related to the ownership of thefinancial asset, it derecognizes the financial asset, and any right or liability arising from such transfer isrecognized independently as an asset or a liability. If it retained substantially all of the risks and rewards relatedto the ownership of the financial asset, it continues recognizing the financial asset. Where the Company doesnot transfer or retain substantially all of the risks and rewards related to the ownership of a financial asset, it isdealt with according to the circumstances as follows respectively: A. if the Company does not retain its controlover the financial asset, it derecognizes the financial asset, and any right or liability arising from such transfer is
recognized independently as an asset or a liability; B. if the Company retains its control over the financial asset,according to the extent of its continuing involvement in the transferred financial asset, it recognizes the relatedfinancial asset and recognizes the relevant liability accordingly.If the transfer of an entire financial asset satisfies the conditions for derecognition, the difference between theamounts of the following two items is included in profit or loss: A. the carrying amount of the transferredfinancial asset as of the date of derecognition; B. the sum of consideration received from the transfer of thefinancial asset, and the accumulative amount of the changes of the fair value originally included in othercomprehensive income proportionate to the transferred financial asset (financial assets transferred refer to debtinstrument investments at fair value through other comprehensive income). If the transfer of financial assetpartially satisfies the conditions for derecognition, the entire carrying amount of the transferred financial asset is,between the portion which is derecognized and the portion which is not, apportioned according to theirrespective relative fair value, and the difference between the amounts of the following two items is includedinto profit or loss: A. the carrying amount of the portion which is derecognized; B. the sum of consideration ofthe portion which is derecognized, and the portion of the accumulative amount of the changes in the fair valueoriginally included in other comprehensive income which is corresponding to the portion which is derecognized(financial assets transferred refer to debt instrument investments at fair value through other comprehensiveincome).
(5) Fair value determination method of financial assets and liabilities
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient dataand information are available to measure fair value. The inputs to valuation techniques used to measure fairvalue are arranged in the following hierarchy and used accordingly:
A. Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that theCompany can access at the measurement date;B. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset orliability, either directly or indirectly. Level 2 inputs include: quoted prices for similar assets or liabilities inactive markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputsother than quoted prices that are observable for the asset or liability, for example, interest rates and yield curvesobservable at commonly quoted intervals; market-corroborated inputs;C. Level 3 inputs are unobservable inputs for the asset or liability. Level 3 inputs include interest rate that is notobservable and cannot be corroborated by observable market data at commonly quoted intervals, historicalvolatility, future cash flows to be paid to fulfill the disposal obligation assumed in business combination,financial forecast developed using the Company’s own data, etc.
(6) Impairment of financial instruments
The Company, on the basis of expected credit loss, recognizes loss allowances of financial assets at amortizedcost, debt instrument investments at fair value through other comprehensive income, contract assets, leasesreceivable, loan commitments other than financial liabilities at fair value through profit or loss, financialguarantee contracts not belong to financial liabilities at fair value through profit or loss or financial liabilitiesthat arise when a transfer of a financial asset does not qualify for derecognition or when the continuinginvolvement approach applies.Expected credit losses refer to the weighted average of credit losses with the respective risks of a defaultoccurring as the weights. Credit loss refers to the difference between all contractual cash flows that are due tothe Company in accordance with the contract and all the cash flows that the Company expects to receive (i.e.,all cash shortfalls), discounted at the original effective interest rate. Among which, purchased or originatedcredit-impaired financial assets are discounted at the credit-adjusted effective interest rate.
At the balance sheet date, the Company shall only recognize the cumulative changes in the lifetime expectedcredit losses since initial recognition as a loss allowance for purchased or originated credit-impaired financialassets.For leases receivable, and accounts receivable and contract assets resulting from transactions regulated in“CASBE 14 – Revenues”, the Company chooses simplified approach to measure the loss allowance at anamount equal to lifetime expected credit losses.For financial assets other than the above, on each balance sheet date, the Company shall assess whether thecredit risk on the financial instrument has increased significantly since initial recognition. The Company shallmeasure the loss allowance for the financial instrument at an amount equal to the lifetime expected credit lossesif the credit risk on that financial instrument has increased significantly since initial recognition; otherwise, theCompany shall measure the loss allowance for that financial instrument at an amount equal to 12-monthexpected credit loss.Considering reasonable and supportable forward-looking information, the Company compares the risk of adefault occurring on the financial instrument as at the balance sheet date with the risk of a default occurring onthe financial instrument as at the date of initial recognition, so as to assess whether the credit risk on thefinancial instrument has increased significantly since initial recognition.The Company may assume that the credit risk on a financial instrument has not increased significantly sinceinitial recognition if the financial instrument is determined to have relatively low credit risk at the balance sheetdate.The Company shall estimate expected credit risk and measure expected credit losses on an individual or acollective basis. When the Company adopts the collective basis, financial instruments are grouped with similarcredit risk features.The Company shall remeasure expected credit loss on each balance sheet date, and increased or reversedamounts of loss allowance arising therefrom shall be included into profit or loss as impairment losses or gains.For a financial asset measured at amortized cost, the loss allowance reduces the carrying amount of suchfinancial asset presented in the balance sheet; for a debt investment measured at fair value through othercomprehensive income, the loss allowance shall be recognized in other comprehensive income and shall notreduce the carrying amount of such financial asset.
(7) Offsetting financial assets and financial liabilities
Financial assets and financial liabilities are presented separately in the balance sheet and are not offset.However, the Company offsets a financial asset and a financial liability and presents the net amount in thebalance sheet when, and only when, the Company: A. currently has a legally enforceable right to set off therecognized amounts; and B. intends either to settle on a net basis, or to realize the asset and settle the liabilitysimultaneously.For a transfer of a financial asset that does not qualify for derecognition, the Company does not offset thetransferred asset and the associated liability.
12. Recognition criteria and accrual method for expected credit losses of receivables and contract assets
(1) Receivables and contract assets with expected credit losses measured on a collective basis using similarcredit risk features
| Categories | Basis for determination of portfolio | Method for measuring expected credit loss |
| Bank acceptance receivable | Type of notes | Based on historical credit loss experience, the current |
| Trade acceptance receivable | situation and the forecast of future economic conditions, the Company calculates expected credit loss through exposure at default and lifetime expected credit loss rate. | |
| Accounts receivable – Portfolio grouped with balances due from related parties within the consolidation scope | Nature of receivables | Based on historical credit loss experience, the current situation and the forecast of future economic conditions, the Company calculates expected credit loss through exposure at default and lifetime expected credit loss rate. |
| Accounts receivable – Portfolio grouped with property sales receivable | Nature of receivables | |
| Accounts receivable – Portfolio grouped with balances due from other customers | Nature of receivables | |
| Other receivables – Portfolio grouped with government funds receivable | Nature of receivables |
Based on historical credit loss experience, the currentsituation and the forecast of future economic conditions,the Company calculates expected credit loss throughexposure at default and 12-month or lifetime expectedcredit loss rate.
Based on historical credit loss experience, the currentsituation and the forecast of future economic conditions,the Company calculates expected credit loss throughexposure at default and 12-month or lifetime expectedcredit loss rate.Other receivables – Portfoliogrouped with employee pettycash receivable
| Other receivables – Portfolio grouped with employee petty cash receivable | Nature of receivables |
| Other receivables – Portfolio grouped with advances received and paid on behalf of others | Nature of receivables |
| Other receivables – Portfolio grouped with other inter-company balances receivable | Nature of receivables |
Other receivables – Portfoliogrouped with balances due fromrelated parties receivable
| Other receivables – Portfolio grouped with balances due from related parties receivable | Nature of receivables | |
| Contract assets – Portfolio grouped with product sales | Nature of receivables | Based on historical credit loss experience, the current situation and the forecast of future economic conditions, the Company calculates expected credit loss through exposure at default and lifetime expected credit loss rate. |
| Contract assets – Portfolio grouped with engineering construction | Nature of receivables |
(2) Recognition criteria for receivables and contract assets with expected credit losses measured on anindividual basisFor receivables and contract assets whose credit risk is significantly different from that of portfolios, theCompany accrues expected credit losses on an individual basis.
13. Inventories
(1) Classification of inventories
Inventories include development land held for sale or consumption during development and operations,developed products, developed products held for sale but temporarily leased out, etc., as well as developmentcost during development.
(2) Accounting method for dispatched inventories
Materials and equipment dispatched from storage are accounted for with specific identification method.During project development, the development cost of land is calculated and allocated based on the areaoccupied by the developed products and the grade coefficient of occupied land.
Developed products dispatched from storage are accounted for with cost coefficient allocation method.Developed products held for sale but temporarily leased out and revolving houses are evenly amortized basedon the estimated useful life of similar fixed assets of the Company.If the public supporting facilities are completed earlier than the relevant developed products, the developmentcost is calculated and allocated based on the construction area of the relevant development projects after thecompletion settlement of the public supporting facilities; if the public supporting facilities are completed laterthan the relevant developed products, the public supporting facility fees shall be accrued, and after thecompletion settlement of the public supporting facilities, the relevant development product costs shall beadjusted based on the difference between the actual cost incurred and cost accrued.
(3) Inventory system
Physical inventory counting method is adopted.
(4) Amortization method of low-value consumables and packages
A. Low-value consumablesLow-value consumables are amortized with usage times.B. PackagesPackages are amortized with usage times.
(5) Provision for inventory write-down
At the balance sheet date, inventories are measured at the lower of cost and net realizable value; provisions forinventory write-down are made on the excess of its cost over the net realizable value. The net realizable value ofinventories held for sale is determined based on the amount of the estimated selling price less the estimatedselling expenses and relevant taxes and surcharges in the ordinary course of business; the net realizable value ofinventories to be processed is determined based on the amount of the estimated selling price less the estimatedcosts of completion, selling expenses and relevant taxes and surcharges in the ordinary course of business; at thebalance sheet date, when only part of the same item of inventories have agreed price, their net realizable valueare determined separately and are compared with their costs to set the provision for inventory write-down to bemade or reversed.
14. Long-term equity investments
(1) Judgment of joint control and significant influence
Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisionsabout the relevant activities require the unanimous consent of the parties sharing control. Significant influenceis the power to participate in the financial and operating policy decisions of the investee but is not control orjoint control of these policies.
(2) Determination of investment cost
1) For business combination under common control, if the consideration of the combining party is that it makespayment in cash, transfers non-cash assets, assumes its liabilities or issues equity securities, on the date ofcombination, it regards the share of the carrying amount of the equity of the combined party included in theconsolidated financial statements of the ultimate controlling party as the initial cost of the investment. Thedifference between the initial cost of the long-term equity investments and the carrying amount of the
combination consideration paid or the par value of shares issued offsets capital reserve; if the balance of capitalreserve is insufficient to offset, any excess is adjusted to retained earnings.When long-term equity investments are obtained through business combination under common control achievedin stages, the Company determines whether it is a “bundled transaction”. If it is a “bundled transaction”, stagesas a whole are considered as one transaction in accounting treatment. If it is not a “bundled transaction”, on thedate of combination, investment cost is initially recognized at the share of the carrying amount of net assets ofthe combined party included the consolidated financial statements of the ultimate controlling party. Thedifference between the initial investment cost of long-term equity investments at the acquisition date and thecarrying amount of the previously held long-term equity investments plus the carrying amount of theconsideration paid for the newly acquired equity is adjusted to capital reserve; if the balance of capital reserve isinsufficient to offset, any excess is adjusted to retained earnings.For business combination not under common control, investment cost is initially recognized at the acquisition-date fair value of considerations paid.When long-term equity investments are obtained through business combination not under common controlachieved in stages, the Company determined whether they are stand-alone financial statements or consolidatedfinancial statements in accounting treatment:
A. In the case of stand-alone financial statements, investment cost is initially recognized at the carrying amountof the previously held long-term equity investments plus the carrying amount of the consideration paid for thenewly acquired equity.B. In the case of consolidated financial statements, the Company determines whether it is a “bundledtransaction”. If it is a “bundled transaction”, stages as a whole are considered as one transaction in accountingtreatment. If it is not a “bundled transaction”, the carrying amount of the acquire previously held equity interestin the acquiree is remeasured at the acquisition-date fair value, and the difference between the fair value and thecarrying amount is recognized in investment income; when the acquire's previously held equity interest in theacquiree involves other comprehensive income under equity method, the related other comprehensive income isreclassified as income for the acquisition period, excluding other comprehensive income arising from changesin net liabilities or assets from remeasurement of defined benefit plan of the acquiree.
3) Long-term equity investments obtained through ways other than business combination: the initial cost of along-term equity investment obtained by making payment in cash is the purchase cost which is actually paid;that obtained on the basis of issuing equity securities is the fair value of the equity securities issued; thatobtained through debt restructuring is determined according to “CASBE 12 – Debt Restructuring”; and thatobtained through non-cash assets exchange is determined according to “CASBE 7 – Non-cash AssetsExchange”.
(3) Subsequent measurement and recognition method of profit or loss
For a long-term equity investment with control relationship, it is accounted for with cost method; for a long-term equity investment with joint control or significant influence relationship, it is accounted for with equitymethod.
(4) Disposal of a subsidiary in stages resulting in the Company’s loss of control
1) Judgement principles of “bundled transaction”
For disposal of a subsidiary in stages resulting in the Company’s loss of control, the Company determineswhether it is a “bundled transaction” based on the agreement terms for each stage, disposal considerationobtained separately, object of the equity sold, disposal method, disposal time point, etc. If the terms, conditionsand economic effect of each transaction meet one or more of the following conditions, these transactions areusually considered as a “bundled transaction”:
A. these transactions are entered into at the same time or in contemplation of each other;B. these transactions form a single transaction designed to achieve an overall commercial effect;C. the occurrence of one transaction is dependent on the occurrence of at least one other transaction; andD. one transaction considered on its own is not economically justified, but it is economically justified whenconsidered together with other transactions.
2) Accounting treatments of non-bundled transactions
A. Stand-alone financial statementsThe difference between the carrying amount of the disposed equity and the consideration obtained thereof isrecognized in profit or loss. If the disposal does not result in the Company’s loss of significant influence or jointcontrol, the remained equity is accounted for with equity method; however, if the disposal results in theCompany’s loss of control, joint control, or significant influence, the remained equity is accounted for accordingto “CASBE 22 – Financial Instruments: Recognition and Measurement”.B. Consolidated financial statementsStages as a whole are considered as one transaction resulting in loss of control in accounting treatment.However, before the Company loses control over a subsidiary, the difference between the disposal considerationat each stage and the proportionate share of net assets in the disposed subsidiary is recognized as othercomprehensive income at the consolidated financial statements and reclassified as profit or loss in the periodwhen the Company loses control over such subsidiary.
15. Investment property
An enterprise's investment property comprises leased land use rights, land use rights held for transfer with theintention of appreciating in value, and leased buildings.Investment properties are initially measured at acquisition cost, and depreciated or amortized using the samepolicy as that for fixed assets or intangible assets.
16.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 ofservices, rental or for administrative purposes with useful lives over one accounting year. Fixed assets are onlyrecognized when its related economic benefits are likely to flow to the Group and its cost can be reliablymeasured.
(2) Depreciation of fixed assets
| Class | Depreciation Method | Estimated useful life (years) | Residual value rate % | Depreciation rate % |
| Plant and buildings | straight-line depreciation | 30 | 5.00 | 3.17 |
| Motor vehicles | straight-line depreciation | 6 | 5 | 15.83 |
| Electronic | straight-line | 5 | 5 | 19 |
| equipment and others | depreciation |
17. Construction in progress
Construction in progress is recognized if, and only if, it is probable that future economic benefits associatedwith the item will flow to the Company, and the cost of the item can be measured reliably. Construction inprogress is measured at the actual cost incurred to reach its designed usable conditions.Construction in progress is transferred into fixed assets at its actual cost when it reaches the designed usableconditions. When the auditing of the construction in progress is not finished while reaching the designed usableconditions, it is transferred to fixed assets using estimated value first, and then adjusted accordingly when theactual cost is settled, but the accumulated depreciation is not to be adjusted retrospectively.
18. Borrowing costs
(1) Capitalization criteria
Where the borrowing costs incurred to the Company can be directly attributable to the acquisition andconstruction or production of assets eligible for capitalization, it is capitalized and included in the costs ofrelevant assets; other borrowing costs are recognized as expenses on the basis of the actual amount incurred,and are included in profit or loss.
(2) Borrowing costs capitalization period
A. The borrowing costs are not capitalized unless the following requirements are all met: 1) the assetdisbursements have already incurred; 2) the borrowing costs have already incurred; and 3) the acquisition andconstruction or production activities which are necessary to prepare the asset for its intended use or sale havealready started.B. Suspension of capitalization: where the acquisition and construction or production of a qualified asset isinterrupted abnormally and the interruption period lasts for more than 3 months, the capitalization of theborrowing costs is suspended; the borrowing costs incurred during such period are recognized as expenses, andare included in profit or loss, till the acquisition and construction or production of the asset restarts.C. Ceasing of capitalization: when the qualified asset under acquisition and construction or production is readyfor the intended use or sale, the capitalization of the borrowing costs is ceased.
(3) Capitalization rate of borrowing costs and calculation basis of capitalized amountFor borrowings exclusively for the acquisition and construction or production of assets eligible forcapitalization, the to-be-capitalized amount of interests is determined in light of the actual interest expensesincurred (including amortization of premium or discount based on effective interest method) of the specialborrowings in the current period less the interest income on the unused borrowings as a deposit in the bank or asa temporary investment; where a general borrowing is used for the acquisition and construction or production ofassets eligible for capitalization, the Company calculates and determines the to-be-capitalized amount ofinterests on the general borrowing by multiplying the weighted average asset disbursement of the excess of theaccumulative capital disbursements over the special borrowings by the capitalization rate of the generalborrowing used.
19. Intangible assets
Useful lives of intangible assets and the basis for determining them, their estimates, amortization methods orreview procedures
1) Intangible assets include software, etc. The initial measurement of intangible assets is based on its cost.
2) For intangible assets with finite useful lives, their amortization amounts are amortized within their usefullives systematically and reasonably, if it is unable to determine the expected realization pattern reliably,intangible assets are amortized by the straight-line method with details as follows:
| Items | Useful life and determination basis | Amortization method |
| Software | Expected realization method of economic benefits related to intangible assets, 3-5 years | Straight-line method |
3) Expenditures on the research phase of an internal project are recognized as profit or loss when they areincurred. An intangible asset arising from the development phase of an internal project is recognized if theCompany can demonstrate all of the followings: A. the technical feasibility of completing the intangible asset sothat it will be available for use or sale; B. its intention to complete the intangible asset and use or sell it;C. howthe intangible asset will generate probable future economic benefits, among other things, the Company candemonstrate the existence of a market for the output of the intangible asset or the intangible asset itself or, if it isto be used internally, the usefulness of the intangible asset; D.the availability of adequate technical, financialand other resources to complete the development and to use or sell the intangible asset; and E. its ability tomeasure reliably the expenditure attributable to the intangible asset during its development.
20. Impairment of long-term assets
For long-term assets such as long-term equity investments, investment property at cost model, fixed assets,construction in progress, right-of-use assets, intangible assets with finite useful lives, etc., if at the balance sheetdate there is indication of impairment, the recoverable amount is to be estimated. For goodwill recognized inbusiness combination and intangible assets with indefinite useful lives, no matter whether there is indication ofimpairment, impairment test is performed annually. Impairment test on goodwill is performed on related assetgroup or asset group portfolio.When the recoverable amount of such long-term assets is lower than their carrying amount, the difference isrecognized as provision for assets impairment through profit or loss.
21. Long-term deferred expenses
Long-term prepayments are expenses that have been recognized but with amortization period over one year(excluding one year). They are recorded with actual cost, and evenly amortized within the beneficiary period orstipulated period. If items of long-term prepayments fail to be beneficial to the following accounting periods,residual values of such items are included in profit or loss.
22. Employee benefits
(1) Accounting for short-term remuneration
The Company recognizes, in the accounting period in which an employee provides service, short-term employeebenefits actually incurred as liabilities, with a corresponding charge to profit or loss or the cost of a relevant asset.
(2) Accounting for post-employment benefits
The Company classifies post-employment benefit plans as either defined contribution plans or defined benefitplans.
1) The Company recognizes in the accounting period in which an employee provides service the contributionpayable to a defined contribution plan as a liability, with a corresponding charge to profit or loss or the cost of arelevant asset.
2) Accounting treatment by the Company for defined benefit plan usually involves the following steps:
A. In accordance with the projected unit credit method, using unbiased and mutually compatible actuarialassumptions to estimate related demographic variables and financial variables, measure the obligations underthe defined benefit plan, and determine the periods to which the obligations are attributed. Meanwhile, theCompany discounts obligations under the defined benefit plan to determine the present value of the definedbenefit plan obligations and the current service cost;B. When a defined benefit plan has assets, the Company recognizes the deficit or surplus by deducting the fairvalue of defined benefit plan assets from the present value of the defined benefit plan obligation as a net definedbenefit plan liability or net defined benefit plan asset. When a defined benefit plan has a surplus, the Companymeasures the net defined benefit plan asset at the lower of the surplus in the defined benefit plan and the assetceiling;C. At the end of the period, the Company recognizes the following components of employee benefits costarising from defined benefit plan: a. service cost; b. net interest on the net defined benefit plan liability (asset);and c. changes as a result of remeasurement of the net defined benefit liability (asset). Item a and item b arerecognized in profit or loss or the cost of a relevant asset. Item c is recognized in other comprehensive incomeand is not to be reclassified subsequently to profit or loss. However, the Company may transfer those amountsrecognized in other comprehensive income within equity.
(3) Accounting for termination benefits
Termination benefits provided to employees are recognized as an employee benefit liability for terminationbenefits, with a corresponding charge to profit or loss at the earlier of the following dates: (1) when theCompany cannot unilaterally withdraw the offer of termination benefits because of an employment terminationplan or a curtailment proposal; or (2) when the Company recognizes cost or expenses related to a restructuringthat involves the payment of termination benefits.
(4) Accounting for other long-term employee benefits
When other long-term employee benefits provided to the employees satisfied the conditions for classifying as adefined contribution plan, those benefits are accounted for in accordance with the requirements relating todefined contribution plan, while other benefits are accounted for in accordance with the requirements relating todefined benefit plan. In order to simplify the related accounting treatment, the net total of the constituent itemsof employee compensation costs incurred that are recognized as service costs, net interest on net liabilities ornet assets for other long-term employee benefits, and changes arising from the remeasurement of net liabilitiesor net assets for other long-term employee benefits are included in the profit or loss for the period or in the costof the related assets.Accounting method for maintenance fundsPursuant to the relevant regulations of the place in which the development project located, the maintenancefunds shall be collected from the buyer or included into the development costs of relevant developed productsby the Company during the sales (pre-sale) of developed products, and shall be uniformly handed over to themaintenance funds management department.Accounting method for quality guarantee depositsThe quality guarantee deposits shall be reserved from the engineering funds of construction unit in accordancewith the provisions of the construction contract. The maintenance costs incurred during the warranty period ofthe developed products shall be offset against the quality guarantee deposits; at the expiration of the agreedwarranty period for developed products, the balance of the quality guarantee deposits shall be refunded to theconstruction unit.
23. Revenue
Disclosure of accounting policies used for revenue recognition and measurement by type of business
(1) Revenue recognition principles
At contract inception, the Company shall assess the contracts and shall identify each performance obligation inthe contracts, and determine whether the performance obligation should be satisfied over time or at a point intime.The Company satisfies a performance obligation over time if one of the following criteria is met, otherwise, theperformance obligation is satisfied at a point in time: A.the customer simultaneously receives and consumes theeconomic benefits provided by the Company’s performance as the Company performs; B. the customer cancontrol goods as they are created by the Company’s performance; C.goods created during the Company’sperformance have irreplaceable uses and the Company has an enforceable right to the payments forperformance completed to date during the whole contract period.For each performance obligation satisfied over time, the Company shall recognize revenue over time bymeasuring the progress towards complete satisfaction of that performance obligation. In the circumstance thatthe progress cannot be measured reasonably, but the costs incurred in satisfying the performance obligation areexpected to be recovered, the Company shall recognize revenue only to the extent of the costs incurred until itcan reasonably measure the progress. For each performance obligation satisfied at a point in time, the Companyshall recognize revenue at the time point that the customer obtains control of relevant goods or services. Todetermine whether the customer has obtained control of goods, the Company shall consider the followingindications: A.the Company has a present right to payments for the goods, i.e., the customer is presently obligedto pay for the goods; B.the Company has transferred the legal title of the goods to the customer, i.e., thecustomer has legal title to the goods; C.the Company has transferred physical possession of the goods to thecustomer, i.e., the customer has physically possessed the goods; D.the Company has transferred significant risksand rewards of ownership of the goods to the customer, i.e., the customer has obtained significant risks andrewards of ownership of the goods; E. the customer has accepted the goods; F. other evidence indicating thecustomer has obtained control over the goods.
(2) Revenue measurement principle
1) Revenue is measured at the amount of the transaction price that is allocated to each performance obligation.The transaction price is the amount of consideration to which the Company expects to be entitled in exchangefor transferring goods or services to a customer, excluding amounts collected on behalf of third parties and thoseexpected to be refunded to the customer.
2) If the consideration promised in a contract includes a variable amount, the Company shall confirm the bestestimate of variable consideration at expected value or the most likely amount. However, the transaction pricethat includes the amount of variable consideration only to the extent that it is high probable that a significantreversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated withthe variable consideration is subsequently resolved.
3) In the circumstance that the contract contains a significant financing component, the Company shalldetermine the transaction price based on the price that a customer would have paid for if the customer had paidcash for obtaining control over those goods or services. The difference between the transaction price and theamount of promised consideration is amortized under effective interest method over contractual period.
4) For contracts containing two or more performance obligations, the Company shall determine the stand-aloneselling price at contract inception of the distinct good underlying each performance obligation and allocate thetransaction price to each performance obligation on a relative stand-alone selling price basis.
(3) Revenue recognition method
1) Sales of real estate development
Real estate sales business is a performance obligation satisfied at a point in time, and revenue is recognized if,and only if, the following conditions are all met: A. the developed products have been completed and accepted;B.the Company have signed sales contract and fulfilled obligations under the contract; C. the Company havedelivered property to the owner or the contractual delivery date has expired after a notice or announcement ofoccupation has been sent to the owner; and D. the Company has collected the full payments for the real estateand related costs incurred or to be incurred can be measured reliably.
2) Rendering of property management services
Rendering of property management services is a performance obligation satisfied over time. Revenue fromproperty management services is recognized by the progress towards complete satisfaction of that performanceobligation, which is determined based on the time progress.
3) Construction services
The Company provides construction services. Since the customer simultaneously receives and consumes theeconomic benefits provided by the Company’s performance as the Company performs, and the Company has anenforceable right to the payments for performance completed to date during the whole contract period,construction services are performance obligations satisfied over time. Revenue from construction services isrecognized by the percentage of completion of the performance obligations, which is determined by inputmethod. In the circumstance that the percentage of completion cannot be measured reasonably, but the incurredcosts are expected to be recovered, the Company recognizes revenue only to the extent of the incurred costsuntil it can reasonably measure the percentage of completion.
4) Others
Other revenues include revenue from hotel operation, etc. For revenue from rendering of hotel room services, asthe customer simultaneously receives and consumes the economic benefits provided by the Company’sperformance as the Company performs, the Company recognizes it as a performance obligation to be performedover time, and revenue is recognized based on the percentage of completion of the performance obligationduring the accounting period when services are provided. For revenue from rendering of other services, it isrecognized when the customer has obtained the control over related goods, and the Company has collected thepayments or has obtained the right to the payments according to relevant contract and agreement.
24. Costs of obtaining a contract and costs to fulfill a contract
The Company recognizes as an asset the incremental costs of obtaining a contract if those costs are expected tobe recovered.If the costs incurred in fulfilling a contract are not within the scope of standards related to inventories, fixedassets or intangible assets, etc., the Company shall recognize the costs to fulfill a contract as an asset if all thefollowing criteria are satisfied:
A. The costs relate directly to a contract or to an anticipated contract, including direct labor, direct materials,manufacturing overhead cost (or similar cost), cost that are explicitly chargeable to the customer under thecontract, and other costs that are only related to the contract;B. The costs enhance resources of the Company that will be used in satisfying performance obligations in thefuture; and
C. The costs are expected to be recovered.An asset related to contract costs shall be amortized on a systematic basis that is consistent with related goodsor services, with amortization included into profit or loss.The Company shall make provision for impairment and recognize an impairment loss to the extent that thecarrying amount of an asset related to contract costs exceeds the remaining amount of consideration that theCompany expects to receive in exchange for the goods or services to which the asset relates less the costsexpected to be incurred. The Company shall recognize a reversal of an impairment loss previously recognized inprofit or loss when the impairment conditions no longer exist or have improved. The carrying amount of theasset after the reversal shall not exceed the amount that would have been determined on the reversal date if noprovision for impairment had been made previously.
25. Contract assets, contract liabilities
The Company presents contract assets or contract liabilities in the balance sheet based on the relationshipbetween its performance obligations and customers’ payments. Contract assets and contract liabilities under thesame contract shall offset each other and be presented on a net basis.The Company presents an unconditional right to consideration (i.e., only the passage of time is required beforethe consideration is due) as a receivable, and presents a right to consideration in exchange for goods that it hastransferred to a customer (which is conditional on something other than the passage of time) as a contract asset.The Company presents an obligation to transfer goods to a customer for which the Company has receivedconsideration (or the amount is due) from the customer as a contract liability.
26. Government grants
(1) Government grants shall be recognized if, and only if, the following conditions are all met:
A. the Company will comply with the conditions attaching to the grants;B. the grants will be received. Monetary government grants are measured at the amount received or receivable.Non-monetary government grants are measured at fair value, and can be measured at nominal amount in thecircumstance that fair value cannot be assessed.
(2) Government grants related to assets
Government grants related to assets are government grants with which the Company purchases, constructs orotherwise acquires long-term assets under requirements of government. In the circumstances that there is nospecific government requirement, the Company shall determine based on the primary condition to acquire thegrants, and government grants related to assets are government grants whose primary condition is to constructor otherwise acquire long-term assets. They offset carrying amount of relevant assets, or they are recognized asdeferred income. If recognized as deferred income, they are included in profit or loss on a systematic basis overthe useful lives of the relevant assets. Those measured at notional amount are directly included into profit orloss. For assets sold, transferred, disposed or damaged within the useful lives, balance of unamortized deferredincome is transferred into profit or loss of the period in which the disposal occurred.
(3) Government grants related to income
Government grants related to income are government grants other than those related to assets. For governmentgrants that contain both parts related to assets and parts related to income, in which those two parts are blurred,they are thus collectively classified as government grants related to income. For government grants related to
income used for compensating the related future cost, expenses or losses, they are recognized as deferredincome and included in profit or loss or used to offset relevant cost during the period in which the relevant cost,expenses or losses are recognized; for government grants related to income used for compensating the relatedcost, expenses or losses incurred to the Company, they are directly included in profit or loss or used to offsetrelevant cost.
(4) Government grants related to the ordinary course of business shall be included into other income orused to offset relevant cost based on business nature, while those not related to the ordinary course ofbusiness shall be included into non-operating revenue or expenditures.
(5) Policy interest subvention
A. In the circumstance that government appropriates interest subvention to lending bank, who provides loansfor the Company with a policy subsidized interest rate, borrowings are carried at the amount received, withrelevant borrowings cost computed based on the principal and the policy subsidized interest rate.B. In the circumstance that government directly appropriates interest subvention to the Company, the subsidizedinterest shall offset relevant borrowing cost.
27. Deferred tax assets/Deferred tax liabilities
1) Deferred tax assets or deferred tax liabilities are calculated and recognized based on the difference betweenthe carrying amount and tax base of assets and liabilities (and the difference of the carrying amount and tax baseof items not recognized as assets and liabilities but with their tax base being able to be determined according totax laws) and in accordance with the tax rate applicable to the period during which the assets are expected to berecovered or the liabilities are expected to be settled.
2) A deferred tax asset is recognized to the extent of the amount of the taxable income, which is most likely toobtain and which can be deducted from the deductible temporary difference. At the balance sheet date, if thereis any exact evidence indicating that it is probable that future taxable income will be available against whichdeductible temporary differences can be utilized, the deferred tax assets unrecognized in prior periods arerecognized.
3) At the balance sheet date, the carrying amount of deferred tax assets is reviewed. The carrying amount of adeferred tax asset is reduced to the extent that it is no longer probable that sufficient taxable income will beavailable to allow the benefit of the deferred tax asset to be utilized. Such reduction is subsequently reversed tothe extent that it becomes probable that sufficient taxable income will be available.
4) The income tax and deferred tax for the period are treated as income tax expenses or income through profit orloss, excluding those arising from the following circumstances: A. business combination; and B. thetransactions or items directly recognized in equity.
5) Deferred tax assets and deferred tax liabilities shall offset each other and be presented on a net basis when thefollowing conditions are all met: A. the Company has the legal right to settle off current tax assets againstcurrent tax liabilities; B. the deferred tax assets and the deferred tax liabilities relate to income taxes levied bythe same tax authority on either: a. the same taxable entity; or b. different taxable entities which intend either tosettle current tax liabilities and assets on a net basis, or to realize the assets and settle the liabilitiessimultaneously, in each future period in which significant amounts of deferred tax assets or liabilities areexpected to be recovered or settled.
28. Leases
(1) The Company as lessee
At the commencement date, the Company recognizes a lease that has a lease term of 12 months or less as ashort-term lease, which shall not contain a purchase option; the Company recognizes a lease as a lease of a low-value asset if the underlying asset is of low value when it is new. If the Company subleases an asset, or expectsto sublease an asset, the head lease does not qualify as a lease of a low-value asset.For all short-term leases and leases of low-value assets, lease payments are recognized as cost or profit or losswith straight-line method over the lease term.Apart from the above-mentioned short-term leases and leases of low-value assets with simplified approach, theCompany recognizes right-of-use assets and lease liabilities at the commencement date.Right-of-use assetsThe right-of-use asset is measured at cost and the cost shall comprise: 1) the amount of the initial measurementof the lease liabilities; 2) any lease payments made at or before the commencement date, less any leaseincentives received; 3) any initial direct costs incurred by the lessee; and 4) an estimate of costs to be incurredby the lessee in dismantling and removing the underlying asset, restoring the site on which it is located orrestoring the underlying asset to the condition required by the terms and conditions of the lease.The Company depreciates the right-of-use asset using the straight-line method. If it is reasonable to be certainthat the ownership of the underlying asset can be acquired by the end of the lease term, the Companydepreciates the right-of-use asset from the commencement date to the end of the useful life of the underlyingasset. Otherwise, the Company depreciates the right-of-use asset from the commencement date to the earlier ofthe end of the useful life of the right-of-use asset or the end of the lease term.Lease liabilitiesAt the commencement date, the Company measures the lease liability at the present value of the lease paymentsthat are not paid at that date, discounted using the interest rate implicit in the lease. If that rate cannot be readilydetermined, the Company’s incremental borrowing rate shall be used. Unrecognized financing expenses,calculated at the difference between the lease payment and its present value, are recognized as interest expensesover the lease term using the discount rate which has been used to determine the present value of lease paymentand included in profit or loss. Variable lease payments not included in the measurement of lease liabilities areincluded in profit or loss in the periods in which they are incurred.After the commencement date, if there is a change in the following items: 1) actual fixed payments; 2) amountsexpected to be payable under residual value guarantees; 3) an index or a rate used to determine lease payments;
4) assessment result or exercise of purchase option, extension option or termination option, the Companyremeasures the lease liability based on the present value of lease payments after changes, and adjusts thecarrying amount of the right-of-use asset accordingly. If the carrying amount of the right-of-use asset is reducedto zero but there shall be a further reduction in the lease liability, the remaining amount shall be recognized intoprofit or loss.
(2) The Company as lessor
At the commencement date, the Company classifies a lease as a finance lease if it transfers substantially all therisks and rewards incidental to ownership of an underlying asset. Otherwise, it is classified as an operating lease.Operating lease
Lease receipts are recognized as lease income with straight-line method over the lease term. Initial direct costsincurred shall be capitalized, amortized on the same basis as the recognition of lease income, and included intoprofit or loss by installments. Variable lease payments related to operating lease which are not included in thelease payment are charged as profit or loss in the periods in which they are incurred.Finance leaseAt the commencement date, the Company recognizes the finance lease payment receivable based on the netinvestment in the lease (sum of the present value of unguaranteed residual value and lease receipts that are notreceived at the commencement date, discounted by the interest rate implicit in the lease), and derecognizesassets held under the finance lease. The Company calculates and recognizes interest income using the interestrate implicit in the lease over the lease term.Variable lease payments not included in the measurement of the net investment in the lease are charged as profitor loss in the periods in which they are incurred.
29. Segment reporting
Operating segments are determined based on the structure of the Company’s internal organization, managementrequirements and internal reporting system. An operating segment is a component of the Company:
that engages in business activities from which it may earn revenues and incur expenses;A. whose financial performance is regularly reviewed by the Management to make decisions about resource tobe allocated to the segment and to assess its performance; andB. for which accounting information regarding financial position, financial performance and cash flows isavailable through analysis.
30. Significant changes in accounting policies
(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 ofthe new accounting standards implemented since 2024
□ Applicable √ Not Applicable
VI. Taxation
1. Main types of taxes and corresponding tax rates
| Taxes | Tax bases | Tax rates |
| Value-added tax (VAT) | The output tax calculated based on the revenue from sales of goods or rendering of services in accordance with the tax law, net of the input tax that is allowed to | 9%.6%.5%.3% |
| be deducted in the current period | ||
| Sales tax | Taxable sales amount (volume) | |
| Urban maintenance and construction tax | Turnover tax actually paid | 7% |
| Enterprise income tax | Taxable income | 25%.16.5% |
| Land appreciation tax | The incremental amount arising from the transfer of state-owned land use right and the buildings and structures that are constructed on the land | Progressive tax rates based on exceeding proportion of value-added amount |
| Housing property tax | For housing property levied on the basis of price, housing property tax is levied at the rate of 1.2% of the balance after deducting 30% of the cost; for housing property levied on the basis of rent, housing property tax is levied at the rate of 12% of lease income | 1.2%.12% |
| Education surcharge | Turnover tax actually paid | 3% |
| Local education surcharge | Turnover tax actually paid | 2% |
Different enterprise income tax rates applicable to different taxpayers:
| Name of taxpayer | Income tax rate |
| Shenzhen Huazhan Construction Supervision Co., Ltd. (the “Huazhan Supervision”) and Shantou Special Economic Zone Xiangshan Real Estate Development Co., Ltd. (the “Shantou Songshan Company”) | 20% |
| Subsidiaries registered in Hong Kong SAR | 16.5% |
| Taxpayers other than the above-mentioned | 25% |
2. Tax preferential policies
Pursuant to the “Announcement of the Ministry of Finance and the State Taxation Administration on theEnterprise Income Tax Preferential Policies for Small Enterprises with Meager Profit and Individually-ownedBusinesses” (Announcement [2023] No. 6 of the Ministry of Finance and the State Taxation Administration),from January 1, 2023 to December 31, 2024, enterprise income tax for the portion of the taxable income within1 million yuan of small enterprises with meager profit is levied at 20% based on 25% of that portion of income.The Company’s subsidiaries Huazhan Supervision and Shantou Songshan Company are subject to a preferentialtax rate of 20% as small enterprises with meager profit.VII. Notes to the consolidated financial statements
1. Cash at bank and Cash Equivalent
Presented in RMB
| Items | Closing balance | Opening balance |
| Cash on hand | 12,863.36 | 18,414.04 |
| Deposits with banks | 577,455,836.24 | 838,926,014.14 |
| Other monetary funds | 37,901,506.09 | 32,074,840.65 |
| Total | 615,370,205.69 | 871,019,268.83 |
| Including: Total overseas deposits | 5,153,474.96 | 5,230,453.64 |
Other notes:
At the end of 30 June 2024, there were CNY 7,819,480.96 of restricted funds in the bank deposits, of whichCNY1,951,493.83 were the funds frozen by the lawsuit and CNY 5,674,439.78 were the funds for theconstruction of public facilities in and around the city of Longgang district. land reclamation costs of theGuangming Lane project of 143,547.35 yuan, and deposits for fixed-term engineering of 50,000.00yuan. At theend of 30 June 2024, the balance of other monetary funds of CNY37,901,506.09 is seven-day notice deposit.
2. Trading financial assets
Presented in RMB
| Items | As at 30 June 2024 | As at 1 January 2024 |
| As at fair value through profit or loss | 929,061,785.11 | 879,340,201.92 |
| Including:: | ||
| wealth management fund | 929,061,785.11 | 879,340,201.92 |
| Including:: | ||
| Total | 929,061,785.11 | 879,340,201.92 |
3. Accounts receivable
(1) Disclosure by Aging
Presented in RMB
| Aging | As at 30 June 2024 | As at 1 January 2024 |
| Within 1 year(include 1 year) | 80,782,995.32 | 71,406,321.18 |
| 1 to 2 years | 9,360,676.74 | 9,482,461.05 |
| 2 to 3 years | 6,104,956.84 | 7,444,786.11 |
| More than 3 years | 24,199,750.72 | 21,248,487.21 |
| 3 to 4 years | 3,121,017.52 | 169,754.01 |
| 4 to 5 years | 3,027,934.33 | 3,027,934.33 |
| More than 5 years | 18,050,798.87 | 18,050,798.87 |
| Total | 120,448,379.62 | 109,582,055.55 |
(2) Disclosure by bad debt provision method
Presented in RMB
| Types | Closing balance | Opening balance | ||||||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
| Amount | Percentage (%) | Amount | Provision percentage | Amount | Percentage (%) | Amount | Provision percentage | |||
| Bad debt provisions made on an individual basis | 24,983,383.25 | 20.74% | 24,983,383.25 | 100.00% | 0.00 | 24,983,383.25 | 22.80% | 24,983,383.25 | 100.00% | 0.00 |
| Including: | ||||||||||
| Bad debt provisions | 95,464,996.37 | 79.26% | 9,526,721.37 | 9.98% | 85,938,275.00 | 84,598,672.30 | 77.20% | 9,497,701.47 | 11.23% | 75,100,970.83 |
| made on a combination basis | ||||||||||
| Including | ||||||||||
| Total | 120,448,379.62 | 34,510,104.62 | 85,938,275.00 | 109,582,055.55 | 34,481,084.72 | 75,100,970.83 |
Name of the category of provision for bad debts by individual item: Accounts receivable for which provision forbad debts is made separately and separately
Presented in RMB
| Items | Opening balance | Closing balance | ||||
| Book balance | Bad debt provision | Book balance | Bad debt provision | Provision percentage | Reason | |
| Agent for import and export business payment | 11,574,556.00 | 11,574,556.00 | 11,574,556.00 | 11,574,556.00 | 100.00% | |
| Long-term receivable of property sale | 10,084,109.60 | 10,084,109.60 | 10,084,109.60 | 10,084,109.60 | 100.00% | |
| Accounts receivable from the revoked subsidiary | 2,314,755.46 | 2,314,755.46 | 2,314,755.46 | 2,314,755.46 | 100.00% | |
| Accounts receivable from other customers | 1,009,962.19 | 1,009,962.19 | 1,009,962.19 | 1,009,962.19 | 100.00% | |
| Total | 24,983,383.25 | 24,983,383.25 | 24,983,383.25 | 24,983,383.25 | ||
Name of the category of provision for bad debts by combination: accounts receivable with provision for baddebts by combination
Presented in RMB
| Items | Closing balance | ||
| Book balance | Bad debt provision | Provision percentage | |
| Other customers receivables | 95,464,996.37 | 9,526,721.37 | 9.98% |
| Total | 95,464,996.37 | 9,526,721.37 | |
Note to the basis for determining the combination:
Please refer to the way of disclosing other receivables’ bad debt provision to disclose relevant information, ifthe group choose to use general model of expected credit losses to accrue bad debts of accounts receivable.
□ Applicable √ Not Applicable
(3) Recoveries or reversals of provision for the current period
Provision for the current period:
Presented in RMB
| Types | Opening balance | Amount changes in current period | Closing balance | |||
| Provision | Recoveries or reversals | Written-off | Others | |||
| Bad debt provisions made on an individual basis | 24,983,383.25 | 24,983,383.25 | ||||
| Bad debt provisions made on a combination basis | 9,497,701.47 | 29,019.90 | 9,526,721.37 | |||
| Total | 34,481,084.72 | 29,019.90 | 34,510,104.62 | |||
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 | Reasons for reversals | Approaches to recoveries | The basis for determining the proportion of provision for bad debts and its reasonableness |
(4) Actual write-off of accounts receivable in the current period
Presented in RMB
| Items | Written-off amount |
Including the significant write-offs of accounts receivable are as follows:
Presented in RMB
| Name of the entity | Nature of accounts receivable | Written-off amount | Reason for written-off | Approval procedures performed | Accounts receivable arising from related party transactions(Y/N) |
Note:
(5) The top five units with the ending balance of accounts receivable collected by the debtors
Presented in RMB
| Debtors | The closing balance of accounts receivable | The closing balance of the contract asset | Closing balances of accounts receivable and contract assets | % of the total closing balance of accounts receivable | Provision for bad debts of accounts receivable and provision for |
| impairment of contract assets | |||||
| Shenzhen Hongteng Investment Management Co., Ltd. | 11,882,292.92 | 11,882,292.92 | 9.36% | 3,032,263.70 | |
| Shenzhen Guangming Construction Engineering First Construction Engineering Co., Ltd | 9,509,429.41 | 314,304.62 | 9,823,734.03 | 7.74% | 294,712.02 |
| Shenzhen Branch of China Construction Technology Group Co., Ltd | 8,865,178.57 | 180,231.40 | 9,045,409.97 | 7.13% | 271,362.30 |
| Hubei Chuheng Property Co., Ltd. | 7,923,562.99 | 992,772.32 | 8,916,335.31 | 7.03% | 267,490.06 |
| Jiangsu Huajian Construction Co., Ltd. Shenzhen Branch | 7,232,909.91 | 337,182.19 | 7,570,092.10 | 5.97% | 227,102.76 |
| Total | 45,413,373.80 | 1,824,490.53 | 47,237,864.33 | 37.23% | 4,092,930.84 |
4. Contract assets
(1) Details
Presented in RMB
| Items | Closing balance | Opening balance | ||||
| Book balance | Provision for impairment | Carrying amount | Book balance | Provision for impairment | Carrying amount | |
| Quality guarantee deposit receivable | 6,444,204.99 | 193,326.15 | 6,250,878.84 | 28,198,553.53 | 845,956.61 | 27,352,596.92 |
| Total | 6,444,204.99 | 193,326.15 | 6,250,878.84 | 28,198,553.53 | 845,956.61 | 27,352,596.92 |
(2) The amount and reason for the significant change in book value during the reporting period
Presented in RMB
| Items | Amount of changes | Reasons for changes |
| Quality guarantee deposit receivable | -87,506,253.43 | Contract assets settled during the year |
| Quality guarantee deposit receivable | 65,751,904.89 | The amount of the increase during the year due to changes in the measurement of progress in |
| compliance | ||
| Total | -21,754,348.54 | —— |
(3) Classified disclosure according to the accrual method of bad debts
Presented in RMB
| Types | Closing balance | Opening balance | ||||||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
| Amount | Percentage (%) | Amount | Provision percentage | Amount | Percentage (%) | Amount | Provision percentage | |||
| Bad debt provisions made on a combination basis | 6,444,204.99 | 100.00% | 193,326.15 | 3.00% | 6,250,878.84 | 28,198,553.53 | 100.00% | 845,956.61 | 3.00% | 27,352,596.92 |
| Including: | ||||||||||
| Engineering construction combination | 6,444,204.99 | 100.00% | 193,326.15 | 3.00% | 6,250,878.84 | 28,198,553.53 | 100.00% | 845,956.61 | 3.00% | 27,352,596.92 |
| Total | 6,444,204.99 | 100.00% | 193,326.15 | 3.00% | 6,250,878.84 | 28,198,553.53 | 100.00% | 845,956.61 | 3.00% | 27,352,596.92 |
Provision for bad debts in accordance with the general model of expected credit losses
□Applicable ? Inapplicable
(4) Provision for bad debts accrued, recovered or reversed in the current period
Presented in RMB
| Items | Accrual for the current period | Recoveries or reversals amount for the current period | Written-off amount for the current period | Reasons |
| Engineering construction combination | 652,630.46 | Part of the recognized contract assets were settled in the current year, and the accrued impairment was reversed according to the accrued impairment amount of the engineering construction portfolio | ||
| Total | 652,630.46 |
Among them, the important amount of bad debt provision recovered or reversed in the current period:
Presented in RMB
| Name of the entity | Recoveries or reversals amount | Reasons for reversals | Approaches to recoveries | The basis for determining the proportion of provision for bad debts and its reasonableness |
Other notes
5. Other receivables
Presented in RMB
| Item | Closing balance | Opening balance |
| Other receivables | 16,772,800.21 | 15,893,736.28 |
| Total | 16,772,800.21 | 15,893,736.28 |
(1) Interest receivable
1) Interest receivable classification
Presented in RMB
| Item | Closing balance | Opening balance |
2) Significant overdue interest
Presented in RMB
| Borrowing unit | The ending balance | Overdue time (month) | Overdue reason | Whether impairment occurs 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) | Closing balance | Opening balance |
2) Significant dividends receivable overdue more than one year are as follows:
Presented in RMB
| Items (or invested units) | Closing balance | Aging | Reasons for not retrieving | Whether impairment occurs 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
| Items | Book balance as at 30 June 2024 | Book balance as at 1 January 2024 |
| Other receivables from related parties | 161,393,309.25 | 161,393,309.25 |
| Other receivables from the government | 165,460.00 | 165,460.00 |
| Other receivables from employee’s petty cash | 50,849.76 | 841,714.00 |
| Other receivables from the collecting and paying on behalf | 379,580.45 | 360,901.91 |
| Other receivables from other customers | 47,467,135.45 | 44,888,290.81 |
| Total | 209,456,334.91 | 207,649,675.97 |
2) Disclosure by aging
Presented in RMB
| Aging | Book balance as at 30 June 2024 | Book balance as at 1 January 2024 |
| Within 1 year(include 1 year) | 8,868,952.85 | 6,047,963.14 |
| 1 to 2 years | 8,979,725.26 | 15,390,258.93 |
| 2 to 3 years | 6,218,519.00 | 103,956.68 |
| More than 3 years | 185,389,137.80 | 186,107,497.22 |
| 3 to 4 years | 27,500.00 | 200.00 |
| 4 to 5 years | 300.00 | 100.00 |
| More than 5 years | 185,361,337.80 | 186,107,197.22 |
| Total | 209,456,334.91 | 207,649,675.97 |
3) Disclosure by bad debt accrual method
?Applicable □ Inapplicable
Presented in RMB
| Categories | Closing balance | Opening balance | ||||||||
| Book balance | Provision for bad debts | Carrying amount | Book balance | Provision for bad debts | Carrying amount | |||||
| Amount | % to total | Amount | Provision proportion (%) | Amount | % to total | Amount | Provision proportion (%) | |||
| Receiv | 192,37 | 91.84% | 192,00 | 99.81% | 371,85 | 191,44 | 92.20% | 191,07 | 99.81% | 368,98 |
| ables with provision for bad debts made on an individual basis | 4,883.40 | 3,026.80 | 6.60 | 4,224.06 | 5,243.86 | 0.20 | ||||
| Including: | ||||||||||
| Provision for bad debts by portfolio | 17,081,451.51 | 8.16% | 680,507.90 | 3.98% | 16,400,943.61 | 16,205,451.91 | 7.80% | 680,695.83 | 4.20% | 15,524,756.08 |
| Including: | ||||||||||
| Total | 209,456,334.91 | 100.00% | 192,683,534.70 | 91.99% | 16,772,800.21 | 207,649,675.97 | 100.00% | 191,755,939.69 | 92.35% | 15,893,736.28 |
Provision for bad debts based on the general model of expected credit losses:
Presented in RMB
| Bad Debt Provision | first stage | Second stage | Third stage | Total |
| To 12-month expected credit loss | To 12-month expected credit loss (no credit impairment) | To lifetime expected credit loss (has occurred credit impairment) | ||
| Balance Opening balance | 177,917.80 | 374,179.82 | 191,203,842.07 | 191,755,939.69 |
| Balance Opening balance in current period | ||||
| Return the current | -187.93 | |||
| Other changes | 927,782.94 | 927,782.94 | ||
| Balance Closing balance | 177,729.87 | 374,179.82 | 192,131,625.01 | 192,683,534.70 |
The basis for the division of each stage and the proportion of bad debt provision:
Changes in the book balance with significant changes in the loss provision for the current period:
□ Applicable √ Not Applicable
4) Provision for bad debts accrued, recovered or reversed in the current period
Provision for bad debts in the current period:
Presented in RMB
| Items | Opening balance | Increase/Decrease | Closing balance | |||
| Accrual | Recovery or reversal | Write-off | Others | |||
| Bad debt provision for | 191,755,939.69 | -187.50 | 927,782.94 | 192,683,534.70 | ||
| other accounts receivable | ||||||
| Total | 191,755,939.69 | -187.50 | 927,782.94 | 192,683,534.70 |
Additions, recoveries or reversals of provision for the current period:
Presented in RMB
| Name of the entity | Amount of recoveries or reversals | Reasons for reversals | Approaches to recoveries | The basis for determining the proportion of provision for bad debts and its reasonableness |
5) Other receivables actually written off in the current period
Presented in RMB
| Items | Amount of written-off |
Including, the important accounts receivable write-off situation is as follows:
Presented in RMB
| Name of the entity | Nature of other receivable | Amount of written-off | Reason | Verification and cancellation procedures to be performed | Whether the payment is generated by an affiliate transaction |
Note:
6) The top five units of ending balance of other receivables
Presented in RMB
| Name of the entity | Nature of other receivables | Ending balance of other receivables | Aging | Proportion of total ending balance of other receivables (%) | Ending balance of bad debt provision |
| Canada Great Wall (Vancouver) Co., Ltd | Balances due from related parties | 89,035,748.07 | Over 5 years | 42.51% | 89,035,748.07 |
| Paklid Limited | Balances due from related parties | 19,393,335.84 | Over 5 years | 9.26% | 19,393,335.84 |
| Australia Bekaton property Limited | Balances due from related parties | 12,559,290.58 | Over 5 years | 6.00% | 12,559,290.58 |
| Guangdong province Huizhou Luofu Hill Mineral Water Co.,Ltd | Balances due from related parties | 10,465,168.81 | Over 5 years | 5.00% | 10,465,168.81 |
| Xi’an Fresh Peak Property Trading Co., | Balances due from related parties | 8,419,205.19 | Over 5 years | 4.02% | 8,419,205.19 |
| Ltd | |||||
| Total | 139,872,748.49 | 66.78% | 139,872,748.49 |
7) Reported to other receivables as a result of centralized management of funds
6. Advances paid
(1) Age analysis
Presented in RMB
| Ages | Closing balance | Opening balance | ||
| Book balance | % to total | Book balance | % to total | |
| Within 1 year | 21,821.40 | 5.21% | 12,271.61 | 3.00% |
| 1-2 years | 196,920.46 | 47.03% | 196,920.46 | 48.12% |
| 2-3 years | 200,000.00 | 47.76% | 200,000.00 | 48.88% |
| Over 3 years | 418,741.86 | 409,192.07 | ||
Explanation of the reasons why the prepayment that is more than 1 year old and the amount of importantamount is not settled in time:
(2) The top five prepayments at the end of the period aggregated by prepayment object
| Name of the entity | Book Balance | Proportion to the total balance of advances paid (%) |
| Guangdong Legal Shengbang (Shenzhen) Law Firm | 200,000.00 | 47.76 |
| Huizhou Huiyang Power Supply Bureau of Guangdong Power Grid Co., Ltd. | 98,840.29 | 23.60 |
| China Telecom Co., Ltd. | 13,728.80 | 3.28 |
| China Telecom Co., Ltd. Huizhou Huiyang District Branch | 3,043.00 | 0.73 |
| Sinopec Sales Corporation Guangdong Shenzhen Petroleum Branch | 2,777.91 | 0.66 |
| Subtotal | 318,390.00 | 76.03 |
Other notes:
7. Inventories
Does the Company need to comply with the disclosure requirements of real estate industry?Yes
(1) Inventory classification
The company complies with the disclosure requirements of "Shenzhen Stock Exchange Industry InformationDisclosure Guidelines No. 3-Listed Companies Engaged in Real Estate Business".Classified by nature:
Presented in RMB
| Items | Closing balance | Opening balance | ||||
| Book balance | Provision for decline in value of inventories or | Carrying amount | Book balance | Provision for decline in value of inventories or | Carrying amount | |
| impairment of contractual performance costs | impairment of contractual performance costs | |||||
| Development costs | 3,686,181,251.39 | 391,731,506.81 | 3,294,449,744.58 | 3,572,697,115.80 | 391,731,506.81 | 3,180,965,608.99 |
| Developed products | 725,007,278.17 | 725,007,278.17 | 733,935,274.64 | 733,935,274.64 | ||
| Raw materials | 56,494.40 | 56,494.40 | 49,504.00 | 49,504.00 | ||
| Goods on hand | 302,977.97 | 38,891.91 | 264,086.06 | 304,426.24 | 38,891.91 | 265,534.33 |
| Total | 4,411,548,001.93 | 391,770,398.72 | 4,019,777,603.21 | 4,306,986,320.68 | 391,770,398.72 | 3,915,215,921.96 |
The main Items of " Real estate developing cost " and their interest capitalization are shown below:
Presented in RMB
| Projects | Start time | Estimated completion time | Estimated total investments (in ten thousand yuan) | Opening balance | Less: Transfer to real estate developed products | Less: Other reduction | Add: development costs increase | Closing balance | Cumulative interest capitalization | Include: Amount of interest capitalized in the current period | Sources of funds |
| Shenfang Linxin Community | 30 Jun.2021 | 30 Jun.2025 | 300,000.00 | 2,310,161,672.58 | 1,201,622.43 | 2,311,363,295.01 | 40,384,162.95 | 0.00 | Others | ||
| Shenfang Guangming Lane | 8 Feb. 2022 | 31 Dec.2024 | 152,060.00 | 1,234,243,535.11 | 112,282,513.16 | 1,346,526,048.27 | 7,685,781.90 | 2,181,957.34 | Bank loans and others | ||
| Shantou Xinfeng Building | 28,291,908.11 | 28,291,908.11 | Others | ||||||||
| Total | 452,060.00 | 3,572,697,115.80 | 113,484,135.59 | 3,686,181,251.39 | 48,069,944.85 | 2,181,957.34 |
The main Items of "Real estate developed products" and their interest capitalization are shown below:
Presented in RMB
| Projects | Completion time | Opening balance | Increase | Decrease | Closing balance | Cumulative interest capitalization | Include: Amount of interest capitalized in the current |
| period | |||||||
| Tianyue Bay Phase II | 30 Jun.2021 | 464,226,283.22 | 5,718,201.06 | 458,508,082.16 | |||
| Tianyue Bay Phase I | 15 Dec.2017 | 198,499,941.34 | 2,874,235.97 | 195,625,705.37 | |||
| Golden Leaf Island Haitian Pavilion Multi Multi-Story Apartment | 16 Sep.1997 | 39,734,763.87 | 184,400.00 | 39,919,163.87 | |||
| Shenfang Cuilin Community | 8 May.2018 | 17,044,647.25 | 519,959.44 | 16,524,687.81 | |||
| Yue King Oriental Project | 18 Nov. 2014 | 6,121,027.07 | 6,121,027.07 | ||||
| Golden Leaf Island Phase X | 2 Dec.2010 | 5,641,278.54 | 5,641,278.54 | ||||
| Golden Leaf Island Phase XI | 20 Aug.2008 | 2,222,776.30 | 2,222,776.30 | ||||
| Beijing Xinfeng Building | 304,557.05 | 304,557.05 | |||||
| Whampoa New Village | 140,000.00 | 140,000.00 | |||||
| Total | 733,935,274.64 | 184,400.00 | 9,112,396.47 | 725,007,278.17 |
The main Items of "instalment on development products”, "leased development products”, “Revolving room”are shown below:
Presented in RMB
| Items | Completion time | Opening balance | Increase | Decrease |
(2) Data resources that are recognized as inventory
Presented in RMB
| Items | Inventory of purchased data resources | Inventory of self-processed data resources | Inventory of data resources obtained by other means | Total |
(3) Provision for inventories and impairment of contract performance costs
Disclose the provision for inventory decline in the following format:
Classified by nature:
Presented in RMB
| Items | Opening balance | Increase | Decrease | Closing balance | Note | ||
| Accrual | Others | Reversal or write-off | Others | ||||
| Development costs | 391,731,506.81 | 391,731,506.81 | |||||
| Shenfang Linxin Community | 38,891.91 | 38,891.91 | |||||
| Total | 391,770,398.72 | 391,770,398.72 | |||||
Categorized by major Items:
Presented in RMB
| Items | Opening balance | Increase | Decrease | Closing balance | Note | ||
| Accrual | Others | Reversal or write-off | Others | ||||
| Shenfang Linxin Community | 391,731,506.81 | 391,731,506.81 | |||||
| Total | 391,731,506.81 | 391,731,506.81 | |||||
(4) The ending balance of inventory contains the explanation of the capitalized amount of borrowingexpenses:
As at 30 June 2024, the Group's inventory balance contains capitalized borrowing costs at 48,069,944.85 yuan.
(5)Restriction on Inventories
Disclose restriction on Inventories by projects:
Presented in RMB
| Name of project | Opening balance | Ending balance | Reason of restriction |
8. Other current assets
Presented in RMB
| Items | Closing balance | Opening balance |
| Contract acquisition costs | 6,447,212.52 | 6,815,071.01 |
| Overpaid or prepaid enterprise income taxes | 39,920,205.75 | 6,212,008.00 |
| Prepaid VAT | 67,043,997.19 | 1,974,376.95 |
| Input VAT to be credited | 15,260,391.31 | 64,189,088.61 |
| Land appreciation tax | 28,857,173.86 | 3,472,045.32 |
| Business tax | 114,320.85 | 195,546.35 |
| Others | 4,749,861.89 | 4,317,126.82 |
| Total | 162,393,163.37 | 87,175,263.06 |
Other notes:
9. Investments in other equity instrument
Presented in RMB
| Items | Opening balance | The cumulative gains | The cumulative loss | Gains accrued at the end of the period through other comprehensive income | Losses accumulated at the end of the period through other comprehensive income | Dividend income recognized in the current period | Closing balance | Specified as the reason for the measurement at fair value and the change thereof through other comprehensive income |
| Shantou Small &Medium Enterprises Financing Guarantee Co., Ltd | 14,324,411.35 | 735,928.78 | 6,771,704.56 | 777,600.00 | 15,060,340.13 | |||
| Total | 14,324,411.35 | 735,928.78 | 6,771,704.56 | 777,600.00 | 15,060,340.13 |
10. Long-term equity investments
Presented in RMB
| Investees | Opening balance (book value) | Opening balance of provision for impairment | Increase/Decrease | Ending balance (book value) | Balance of provision for impairment as June 30 2024 | |||||||
| Increase | Decrease | Investment income recognized under equity met ho | Adjustment in OCI | Other equity movements | Declared distribution of cash dividends or profits | Provision f or impairment | Other | |||||
| 1. Joint ventures | ||||||||||||
| Guangdong Huizhou Luofushan Mineral Water Beverage Co., Ltd. | 9,969,206.09 | 9,969,206.09 | 9,969,206.09 | 9,969,206.09 | ||||||||
| Fengkai | 9,455,465.3 | 9,455,465.3 | 9,455,465.3 | 9,455,465.3 | ||||||||
| Xinghua Hotel | 8 | 8 | 8 | 8 | ||||||||
| Subtotal | 19,424,671.47 | 19,424,671.47 | 19,424,671.47 | 19,424,671.47 | ||||||||
| 2. Associates | ||||||||||||
| Shenzhen Ronghua Electromechanical Engineering Co., Ltd. | 1,076,954.64 | 1,076,954.64 | 1,076,954.64 | 1,076,954.64 | ||||||||
| Shenzhen Runhua Automobile Trading Co., Ltd. | 1,445,425.56 | 1,445,425.56 | 1,445,425.56 | 1,445,425.56 | ||||||||
| Dongyi Properties Co., Ltd. | 30,376,084.89 | 30,376,084.89 | 30,376,084.89 | 30,376,084.89 | ||||||||
| Subtotal | 32,898,465.09 | 32,898,465.09 | 32,898,465.09 | 32,898,465.09 | ||||||||
| Total | 52,323,136.56 | 52,323,136.56 | 52,323,136.56 | 52,323,136.56 | ||||||||
Other notes
11. Investment property
(1) Investment properties measured using the cost model
Presented in RMB
| Items | Buildings | Land use rights | Construction in progress | Total |
| Ⅰ. Original book value: | ||||
| 1.Opening balance | 1,044,744,895.39 | 109,170,407.59 | 1,153,915,302.98 |
| 2. Decrease during the year | 402,296.81 | 402,296.81 | ||
| (1)Purchase | ||||
| (2)Transfer from Inventories\Fixed assets\ construction in progress | ||||
| (3)Increases due to business combinations | ||||
| (4)Others (Exchange Rate Changes) | 402,296.81 | 402,296.81 | ||
| 3. Decrease during the year | 1,267,121.54 | 1,267,121.54 | ||
| (1)Disposals | 1,267,121.54 | 1,267,121.54 | ||
| (2)Other transfers out | ||||
| 4.Balance as at 30 June 2024 | 1,043,477,773.85 | 109,572,704.40 | 1,153,050,478.25 | |
| II. Accumulated depreciation or amortization | ||||
| 1.Opening balance | 508,643,374.73 | 508,643,374.73 | ||
| 2. Charge for the year | 12,648,643.02 | 12,648,643.02 | ||
| (1)Depreciated or amortized | 12,648,643.02 | 12,648,643.02 | ||
| 3. Reductions during the year | 759,230.74 | 759,230.74 | ||
| 2. Charge for the year | 759,230.74 | 759,230.74 | ||
| (1)Depreciated or amortized | ||||
| 4.Closing balance | 520,532,787.01 | 520,532,787.01 | ||
| III. Provision for impairment | ||||
| 1.Opening balance | 14,128,544.62 | 89,601,247.46 | 103,729,792.08 | |
| 2.Increase during the period | 330,183.77 | 330,183.77 | ||
| (1)provision | ||||
| (2)Other (exchange rate changes) | 330,183.77 | 330,183.77 | ||
| 3.Decrease during the period | 45,834.14 | 45,834.14 |
| (1)Disposals | 45,834.14 | 45,834.14 | ||
| (2)Other transfers out | ||||
| 4.Closing balance | 14,082,710.48 | 89,931,431.23 | 104,014,141.71 | |
| IV. Book value | ||||
| 1.Closing book value | 508,862,276.36 | 19,641,273.17 | 528,503,549.53 | |
| 2.Opening book value | 521,972,976.04 | 19,569,160.13 | 541,542,136.17 |
(2) Investment property measured at fair value
The company complies with the disclosure requirements of "Shenzhen Stock Exchange Industry InformationDisclosure Guidelines No. 3-Listed Companies Engaged in Real Estate Business"Investment properties measured using fair value disclosure by Items:
Presented in RMB
| Project name | Location | Completion Time | building area(㎡) | Rental income in reporting period | Opening fair value | Closing fair value | Movement in Fair value | Reasons and Index for fair value 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) Converted into investment real estate and measured at fair value
Presented in RMB
| Items | Accounting accounts before conversion | Amounts | Reason for conversion | Approval process | Impact on profit and loss | Impact on other comprehensive income |
(4) Investment properties pending certificates of ownership
Presented in RMB
| Items | Book value | Reason why certificates are pending |
12. Fixed assets
Presented in RMB
| Items | Closing balance | Opening balance |
| Fixed assets | 18,955,069.88 | 19,928,049.77 |
| Total | 18,955,069.88 | 19,928,049.77 |
(1) Details of fixed assets
Presented in RMB
| Items | Plant & buildings | Motor vehicles | Electronic equipment and others | Total |
| Ⅰ. Original book value: | ||||
| 1.Opening balance | 100,422,074.10 | 7,115,129.61 | 8,083,418.39 | 115,620,622.10 |
| 2. Increase during the year | 376,600.00 | 68,594.73 | 445,194.73 | |
| (1) Purchases | 376,600.00 | 68,594.73 | 445,194.73 | |
| (2) Transfers from construction in progress | ||||
| (3) Additions due to business combinations | ||||
| 3. Decrease during the year | 74,733.00 | 3,499.00 | 78,232.00 | |
| (1) Disposals or written-offs | 74,733.00 | 3,499.00 | 78,232.00 | |
| 4.Closing balance | 100,347,341.10 | 7,491,729.61 | 8,148,514.12 | 115,987,584.83 |
| II. Accumulated depreciation | ||||
| 1.Opening balance | 83,816,391.64 | 5,821,431.05 | 6,054,749.64 | 95,692,572.33 |
| 2. Increase during the year | 1,153,139.34 | 113,483.87 | 221,960.21 | 1,488,583.42 |
| (1) Provision | 1,078,818.94 | 113,483.87 | 221,960.21 | 1,414,263.02 |
| 3. Decrease during the year | 74,320.40 | 74,320.40 | ||
| (1) Disposal or written-offs | 74,320.40 | 74,320.40 | ||
| 4.Closing balance | 84,820,890.18 | 5,934,914.92 | 6,276,709.85 | 97,032,514.95 |
| III. Provision for impairment | ||||
| 1.Opening balance | ||||
| 2. Increase during the year | ||||
| (1) Provision | ||||
| 3. Reductions for the year |
| (1) Disposals or written-offs | ||||
| 4.Closing balance | ||||
| IV. Book value | ||||
| 1.Closing book value | 15,526,450.92 | 1,556,814.69 | 1,871,804.27 | 18,955,069.88 |
| 2.Opening book value | 16,605,682.46 | 1,293,698.56 | 2,028,668.75 | 19,928,049.77 |
(2) Temporarily idle fixed assets
Presented in RMB
| Items | Cost | Accumulated depreciation | Provision for impairment | Book value | Note |
(3) Fixed assets leased out under operating leases
Presented in RMB
| Items | Closing book value |
(4) Fixed assets pending certificates of ownership
Presented in RMB
| Items | Book value | Reason why certificates of ownership are pending |
Other notes:
(5) Impairment testing of fixed assets
□Applicable ? Inapplicable
(6) Fixed assets liquidation
Presented in RMB
| Items | Closing balance | Opening balance |
Other notes:
13. Right-of-use assets
(1) Details of right-of-use assets
Presented in RMB
| Items | Plant & buildings | Total |
| Ⅰ. Original book value: | ||
| 1.Opening balance | 431,779.61 | 431,779.61 |
| 2. Increase during the year |
| 3. Decrease during the year | ||
| 4.Closing balance | 431,779.61 | 431,779.61 |
| II. Accumulated depreciation | ||
| 1.Opening balance | 332,138.13 | 332,138.13 |
| 2. Increase during the year | 66,427.62 | 66,427.62 |
| (1) Provision | 66,427.62 | 66,427.62 |
| 3. Decrease during the year | ||
| (1) Disposal or written-offs | ||
| 4.Closing balance | 398,565.75 | 398,565.75 |
| III. Provision for impairment | ||
| 1.Opening balance | ||
| 2. Increase during the year | ||
| (1) Provision | ||
| 3. Decrease during the year | ||
| (1) Disposal or written-offs | ||
| 4.Closing balance | ||
| IV. Book value | ||
| 1.Closing book value | 33,213.86 | 33,213.86 |
| 2.Opening book value | 99,641.48 | 99,641.48 |
14. Intangible assets
(1) Details of intangible assets
Presented in RMB
| Items | Land use rights | Patent right | Non-patented technology | Software | Total |
| Ⅰ. Original book value: | |||||
| 1.Opening balance | 2,192,000.00 | 2,192,000.00 | |||
| 2. Increase during the year | |||||
| (1) Purchase | |||||
| (2) Internal development | |||||
| (3) Additions due to business combination | |||||
| 3. Decrease during the year | |||||
| (1) Disposals | |||||
| 4.Closing balance | 2,192,000.00 | 2,192,000.00 | |||
| II. Accumulated depreciation | |||||
| 1.Opening balance | 2,192,000.00 | 2,192,000.00 | |||
| 2. Increase during the year | |||||
| (1) Provision | |||||
| 3. Decrease during the year | |||||
| (1) Disposal or written- |
| offs | |||||
| 4.Closing balance | 2,192,000.00 | 2,192,000.00 | |||
| III. Provision for impairment | |||||
| 1.Opening balance | |||||
| 2. Increase during the year | |||||
| (1) Provision | |||||
| 3. Decrease during the year | |||||
| (1) Disposal or written-offs | |||||
| 4.Closing balance | |||||
| IV. Book value | |||||
| 1.Closing book value | |||||
| 2.Opening book value |
The carrying amount of intangible assets of the Group arising from internal development is 0.00% of the totalcarrying amount of intangible assets at the end of the year.
(2) Data resources that are recognized as intangible assets
Presented in RMB
| Items | Intangible assets of purchased data resources | Intangible assets of self-processed data resources | Intangible assets of data resources obtained by other means | Total |
(3) Land use rights pending certificates of ownership
Presented in RMB
| Items | Book value | Reason why certificates of ownership are pending |
Other notes
15. Long-term amortized expenses
Presented in RMB
| Items | Opening balance | Additions during the year | amortization for the year | Others decreases | Closing balance |
| Renovation Costs | 1,309,140.94 | 299,465.28 | 1,009,675.66 | ||
| Others | 289,164.62 | 83,999.46 | 205,165.16 | ||
| Total | 1,598,305.56 | 383,464.74 | 1,214,840.82 |
Other notes
16. Deferred tax assets/Deferred tax liabilities
(1) Deferred tax assets and deferred tax liabilities that are not offset
Presented in RMB
| Items | Closing balance | Opening balance |
| Deductible or taxable temporary | Deferred tax assets | Deductible or taxable temporary | Deferred tax assets | |
| Provisions for impairment of assets | 16,901,090.32 | 4,225,272.58 | 16,963,840.11 | 4,225,272.58 |
| Unrealized profits of infra-group transactions | 80,397,191.40 | 20,099,297.85 | 80,397,191.40 | 20,099,297.85 |
| Deductible tax losses | 43,505,430.56 | 10,876,357.64 | 43,152,112.49 | 10,788,028.12 |
| Provision for land appreciation tax liquidation reserves | 2,140,368.96 | 535,092.24 | 2,140,368.96 | 535,092.24 |
| Accrued Contractual cost | 2,660,481.88 | 665,120.47 | 2,660,481.88 | 665,120.47 |
| Total | 145,604,563.12 | 36,401,140.78 | 145,313,994.84 | 36,312,811.26 |
(2) Deferred tax liabilities without offsetting
Presented in RMB
| Items | Closing balance | Opening balance | ||
| Deductible or taxable temporary differences | Deferred tax liabilities | Deductible or taxable temporary differences | Deferred tax liabilities | |
| Changes in the fair value of other equity instrument investments | 2,324,411.36 | 581,102.84 | 2,324,411.36 | 581,102.84 |
| Changes in fair value of held-for-trading financial assets | 7,824,348.72 | 1,956,087.18 | 7,824,348.72 | 1,956,087.18 |
| Interest not due | 1,901,506.08 | 475,376.52 | 1,901,506.08 | 475,376.52 |
| Total | 12,050,266.16 | 3,012,566.54 | 12,050,266.16 | 3,012,566.54 |
(3) Deferred tax assets or deferred tax liabilities disclosed as net amount after offsetting
Presented in RMB
| Items | Amount of offsetting as at 30 June 2024 | Deferred tax assets or liabilities after offsetting as at 30 June 2024 | Amount of offsetting as at 31 Dec. 2023 | Deferred tax assets or liabilities after offsetting as at 31 Dec. 2023 |
| Deferred tax assets | 36,401,140.78 | 36,312,811.26 | ||
| Deferred tax liabilities | 3,012,566.54 | 3,012,566.54 |
(4) Details of unrecognized deferred tax assets
Presented in RMB
| Items | Closing balance | Opening balance |
| Deductible temporary differences | 927,327,869.24 | 927,951,667.74 |
| Deductible tax losses | 27,426,841.16 | 68,296,307.42 |
| Total | 954,754,710.40 | 996,247,975.16 |
(5) Expiration of deductible tax losses for unrecognized deferred tax assets
Presented in RMB
| Year | Closing amount | Opening amount | Note |
| 2024 | 688,456.49 | ||
| 2025 | 1,629.25 | 1,629.25 | |
| 2026 | 346,891.06 | 346,891.06 | |
| 2027 | 16,546,244.24 | 48,904,614.38 | |
| 2028 | 10,532,076.61 | 18,354,716.24 | |
| Total | 27,426,841.16 | 68,296,307.42 |
Other notes
17. Assets with restricted ownership or use
Presented in RMB
| Items | Closing balance | Opening balance | ||||||
| Book balance | Book value | Restricted types | Restricted circumstances | Book balance | Book value | Restricted types | Restricted circumstances | |
| Monetary funds | 5,817,987.13 | 5,817,987.13 | Impound | Public facilities projects in and around urban renewal projects in Longgang District, Shenzhen - construction funds; The cost of land reclamation for the Shenfang Guangming Lane project | 5,817,217.78 | 5,817,217.78 | Seized | Public facilities projects in and around urban renewal projects in Longgang District, Shenzhen - construction funds; The cost of land reclamation for the Shenfang Guangming Lane project |
| Notes receivable | ||||||||
| Inventory | ||||||||
| Fixed assets | ||||||||
| Intangible | ||||||||
| asset | ||||||||
| Monetary funds | 1,951,493.83 | 1,951,493.83 | Freeze | Litigation freeze | 5,943,085.18 | 5,943,085.18 | Freeze | Litigation freeze |
| Monetary funds | 50,000.00 | 50,000.00 | Impound | Construction security deposit | 50,000.00 | 50,000.00 | Impound | Construction security deposit |
| Monetary funds | 62,552.52 | 62,552.52 | Impound | Stop payment, suspend account | ||||
| Accounts receivable | 19,465,979.77 | 19,465,979.77 | Pledge | Pledge of short-term loans | 27,890,361.58 | 27,890,361.58 | Pledge | Pledge of short-term loans |
| Investment real estate | 103,165,591.84 | 44,297,197.87 | Collateral | Borrowing collateral | 103,165,591.84 | 44,297,197.87 | Collateral | Borrowing collateral |
| Total | 130,451,052.57 | 71,582,658.60 | 142,928,808.90 | 84,060,414.93 |
Other notes:
18. Short-term loans
(1) Classification of short-term loans
Presented in RMB
| Items | Closing balance | Opening balance |
| Factoring of receivables | 10,310,396.09 | 3,550,000.00 |
| Total | 10,310,396.09 | 3,550,000.00 |
Notes on classification of short-term borrowings:
(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 asfollows:
Presented in RMB
| Lender | Closing balance | Interest rate | Past due period | Interest rate if overdue |
Other notes
19. Accounts payable
(1) Details of accounts payable
Presented in RMB
| Items | Closing balance | Opening balance |
| Construction | 400,330,473.28 | 442,529,992.29 |
| Others | 3,431,618.82 | 729,776.49 |
| Total | 403,762,092.10 | 443,259,768.78 |
(2) Significant accounts payable with age over one year
Presented in RMB
| Items | Closing balance | Reasons for non-reimbursement or carry-over |
| China Railway Second Bureau Group Co., Ltd. | 104,922,084.43 | Not yet settled |
| Huizhou Jinlongsheng Industry Co., Ltd. | 84,950,000.00 | Not yet settled |
| Huizhou Huiyang Hongfa Industry & Trade Co., Ltd. | 50,350,000.00 | Not yet settled |
| Huizhou Mingxiang Economic Information Consulting Co., Ltd. | 41,851,375.00 | Not yet settled |
| Guangzhou Mingji Construction Co., Ltd. | 12,572,856.16 | Not yet settled |
| Total | 294,646,315.59 |
Other notes:
20. Other payables
Presented in RMB
| Items | Closing balance | Opening balance |
| Interest payable | 16,535,277.94 | 16,535,277.94 |
| Other payables | 542,929,961.14 | 537,933,951.65 |
| Total | 559,465,239.08 | 554,469,229.59 |
(1) Interest payables
Presented in RMB
| Items | Closing balance | Opening balance |
| Interest of borrowings from non-financial institutions (interest payable to parent company) | 16,535,277.94 | 16,535,277.94 |
| Total | 16,535,277.94 | 16,535,277.94 |
Details of significant interest payable overdue but unpaid:
Presented in RMB
| Creditors | Amount overdue | Reasons for overdue |
| Shenzhen Investment Holdings Co., Ltd. | 16,535,277.94 | Suspension of payment |
| Total | 16,535,277.94 |
Other notes:
(2) Dividends payables
Presented in RMB
| Items | Closing balance | Opening balance |
Other notes, including significant dividends payable that have been outstanding for more than one year, forwhich the reason for non-payment should be disclosed:
(3) Other payables not mentioned above
1) Other accounts payable by nature of payment
Presented in RMB
| Items | Closing balance | Opening balance |
| Balances due to non-related parties | 205,786,265.95 | 177,620,294.46 |
| Balances due to related parties | 234,128,204.66 | 234,129,312.99 |
| Deposits | 26,637,684.41 | 27,861,196.50 |
| Others | 76,377,806.12 | 98,323,147.70 |
| Total | 542,929,961.14 | 537,933,951.65 |
2) Significant other payables with age over one year
Presented in RMB
| Items | Closing balance | Reasons for non-reimbursement or carry-over |
| Guangzhou Bopi Enterprise Management Consulting Co., Ltd. | 206,903,717.13 | Not yet settled |
| Huizhou Guirong Investment Information Consulting Co., Ltd. | 102,197,564.38 | Not yet settled |
| Huizhou Huiyang Hongfa Industry & Trade Co., Ltd. | 26,894,095.89 | Not yet settled |
| Huizhou Mingxiang Economic Information Consulting Co., Ltd. | 26,131,960.68 | Not yet settled |
| Total | 362,127,338.08 |
Other notes
21. Advances received
(1) Details of advances received
Presented in RMB
| Items | Closing balance | Opening balance |
| Payments for goods of agency import and export business | 214,630.00 | 214,630.00 |
| Others | 123,147.18 | 206,094.30 |
| Total | 337,777.18 | 420,724.30 |
Other notes:
22. Contractual liabilities
Presented in RMB
| Items | Closing balance | Opening balance |
| Payments for house sale received in advance | 1,375,699,065.82 | 1,290,868,600.78 |
| Room charges received in advance | 56,197.55 | 56,197.55 |
| Payments for goods received in advance | 351,328.33 | 351,328.33 |
| Engineering funds received in advance | 172,464.62 | 172,464.62 |
| Total | 1,376,279,056.32 | 1,291,448,591.28 |
Significant contractual liabilities aged over 1 year:
Presented in RMB
| Items | Closing balance | Reasons for non-reimbursement or carry-over |
Amount and reasons for significant changes in book value during the reporting period:
Presented in RMB
| Items | Amount of change | Reason for change |
| Payments for house sale received in advance | 84,830,465.04 | Pre-sale of Shenfang Guangming Lane Real Estate Project in the current period |
| Total | 84,830,465.04 |
The company needs to comply with the disclosure requirements of "real estate industry" in the "Shenzhen StockExchange 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
| No. | Items | Opening balance | Closing balance | Estimated completion date | Proportion of pre-sales (%) |
| 1 | Shenfang Guangming Lane | 1,247,568,338.53 | 1,346,926,517.07 | 31 Dec.2024 | 99.74% |
23. Employee benefits payable
(1) Details of employee benefits payable
Presented in RMB
| Items | Opening balance | Increase | Decrease | Closing balance |
| Ⅰ. Short-term employee benefits | 22,194,258.15 | 33,270,719.48 | 32,253,308.41 | 23,211,669.22 |
| II. Post-employment benefits - defined contribution plan | 52,759.21 | 4,961,914.09 | 4,963,931.69 | 50,741.61 |
| III.Termination benefits | 110,421.00 | 110,421.00 | 0.00 | |
| Total | 22,247,017.36 | 38,343,054.57 | 37,327,661.10 | 23,262,410.83 |
(2) Details of short-term employee benefits
Presented in RMB
| Items | Opening balance | Increase | Decrease | Closing balance |
| 1. Wage, bonus, allowance and subsidy | 21,950,880.02 | 26,586,752.60 | 25,452,247.75 | 23,085,384.87 |
| 2. Employee welfare fund | 150,000.00 | 1,859,092.39 | 1,974,140.91 | 34,951.48 |
| 3. Social insurance premium | 1,245,657.77 | 1,245,657.77 | ||
| Including: Medicare premium | 1,088,739.25 | 1,088,739.25 | ||
| Occupational injuries | 57,728.53 | 57,728.53 |
| premium | ||||
| Maternity premium | 99,189.99 | 99,189.99 | ||
| 4. Housing provident fund | 2,601,367.28 | 2,601,367.28 | ||
| 5. Trade union fund and employee education fund | 93,378.13 | 977,849.44 | 979,894.70 | 91,332.87 |
| Total | 22,194,258.15 | 33,270,719.48 | 32,253,308.41 | 23,211,669.22 |
(3) Details of defined contribution plan
Presented in RMB
| Items | Opening balance | Increase | Decrease | Closing balance |
| 1. Basic endowment insurance premium | 2,945,746.11 | 2,945,746.11 | ||
| 2. Unemployment insurance premium | 172,742.36 | 172,742.36 | ||
| 3. Company annuity payment | 52,759.21 | 1,843,425.62 | 1,845,443.22 | 50,741.61 |
| Total | 52,759.21 | 4,961,914.09 | 4,963,931.69 | 50,741.61 |
Other notes
24. Taxes and rates payable
Presented in RMB
| Items | Closing balance | Opening balance |
| VAT | 3,379,137.35 | 6,952,681.57 |
| Enterprise income tax | 19,160,769.32 | 25,379,573.98 |
| Individual income tax withheld for tax authorities | 557,495.90 | 666,822.33 |
| Urban maintenance and construction tax | 1,138,187.53 | 1,379,662.47 |
| Land appreciation tax | 5,867,602.01 | 4,646,137.48 |
| Housing property tax | 4,628,880.94 | 250,796.18 |
| Education surcharge | 488,667.87 | 592,022.63 |
| Local education surcharge | 313,369.24 | 382,272.44 |
| Others | 494,217.20 | 659,017.40 |
| Total | 36,028,327.36 | 40,908,986.48 |
Other notes
25. Non-current liabilities due within one year
Presented in RMB
| Items | Closing balance | Opening balance |
| Long-term borrowings due within one year | 50,282,173.20 | 34,001,293.81 |
| Lease liabilities due within one year | 34,476.46 | 55,054.12 |
| Total | 50,316,649.66 | 34,056,347.93 |
Other notes:
26. Other current liabilities
Presented in RMB
| Items | Closing balance | Opening balance |
| Sales tax to be transferred | 122,982,749.06 | 115,574,168.18 |
| factoring of accounts receivable | 9,155,583.68 | 20,790,361.58 |
| Total | 132,138,332.74 | 136,364,529.76 |
Increase or decrease in short-term bonds payable:
27. Long-term loans
(1) Classification of long-term loans
Presented in RMB
| Items | Closing balance | Opening balance |
| Pledge loan | 62,336,264.42 | 179,431,851.02 |
| Total | 62,336,264.42 | 179,431,851.02 |
Note:
Additional notes, including interest rate ranges:
28. Other comprehensive income
Presented in RMB
| Items | Opening balance | Increase | Decrease | Closing balance |
| Capital premium (equity premium) | 557,433,036.93 | 557,433,036.93 | ||
| Other capital surplus | 420,811,873.18 | 420,811,873.18 | ||
| Total | 978,244,910.11 | 978,244,910.11 |
Other notes,including an explanation of the increase or decrease during the period and the reasons for thechange:
29. Other comprehensive income
Presented in RMB
| Items | Opening balance | Current amount | Closing balance | |||||
| The current income tax before the amount | Less: included in other comprehensive income in the previous period and transferred to profit or loss in the current period | Less: included in other comprehensive income in the previous period and transferred to retained earnings in the current period | Less: Income tax expense | Attributable to the parent company after tax | Attributable to minority shareholders after tax | |||
| I. Other comprehe | 2,159,512.75 | 735,928.78 | 735,928.78 | 2,895,441.53 | ||||
| nsive income that cannot be reclassified into profits and losses | ||||||||
| Changes in the fair value of other equity instrument investments | 2,159,512.75 | 735,928.78 | 735,928.78 | 2,895,441.53 | ||||
| II.Other comprehensive income which is reclassified into profit and loss | 23,159,946.69 | -2,844,766.16 | -2,743,198.16 | -101,568.00 | 20,416,748.53 | |||
| Translation differences arising from translation of foreign currency financial statements | 23,159,946.69 | -2,844,766.16 | -2,743,198.16 | -101,568.00 | 20,416,748.53 | |||
| Total | 25,319,459.44 | -2,108,837.38 | -2,007,269.38 | -101,568.00 | 23,312,190.06 |
Other notes, including the adjustment of the effective portion of the cash flow hedging gain or loss to theinitially recognized amount of the hedged item:
30. Surplus reserve
Presented in RMB
| Item | Opening balance | Additions during the year | Reductions during the year | Closing balance |
| Statutory surplus reserve | 275,253,729.26 | 275,253,729.26 | ||
| Total | 275,253,729.26 | 275,253,729.26 |
Other notes:
31. Retained earnings
Presented in RMB
| Item | Current amount | Amount of previous period |
| Before adjustment: Retained earnings at the end of the previous period | 1,400,604,385.39 | 1,713,155,187.48 |
| After adjustment: Retained earnings at the beginning of the reporting period | 1,400,604,385.39 | 1,713,155,187.48 |
| Plus:Net profits for the year attributable to owners of the Group | 5,622,791.39 | -37,118,182.81 |
| Dividends payable to ordinary shares | 61,711,260.00 | |
| Retained earnings at the end of the reporting period | 1,406,227,176.78 | 1,614,325,744.67 |
Adjustments on beginning retained earnings are as follows:
1). Retrospective adjustments of RMB 0.00 made on beginning retained earnings in accordance with CAS andrelated 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 businesscombinations involving entities under common control.
5). RMB 0.00 on beginning retained earnings due to other adjustments.
32. Operation Income and Costs
Presented in RMB
| Items | Current amount | Amount of previous period | ||
| Income | Costs | Income | Costs | |
| Main business | 131,280,409.37 | 106,078,736.50 | 524,099,615.63 | 442,138,382.34 |
| Other business | 2,944,710.06 | 1,353,721.01 | 6,788,105.05 | 2,659,259.76 |
| Total | 134,225,119.43 | 107,432,457.51 | 530,887,720.68 | 444,797,642.10 |
Breakdown of operating income and operating costs:
Information related to performance obligations:
| Items | The time to fulfill the performance obligation | Important payment terms | The nature of the goods that the company undertakes to transfer | Whether it is the main responsible person | The Company assumes the money that is expected to be refunded to the Customer | The type of quality assurance offered by the company and the associated obligations |
Other notes:
The Company's real estate sales business is a performance obligation to be performed at a certain point in time.The realization of sales revenue shall be recognized when the development product has been completed andaccepted, the sales contract has been signed and the obligations stipulated in the contract have been fulfilled, thenotice or announcement of occupancy has been issued to the owner, the property has been actually delivered tothe owner or the delivery date agreed in the contract has expired, the full amount of the house has beencollected, and the relevant costs that have been incurred or will be incurred can be reliably measured.
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 thathave been signed but not yet performed or not yet completed is RMB 1,535,320,476.56 yuan, Among them,RMB 1,117,009,557.57 yuan is expected to be recognized as revenue in 2024, RMB 392,513,435.90 is expectedto be recognized as revenue in the year 2025, and RMB 25,797,483.09 yuan is expected to be recognized asrevenue in the year 2026 and subsequent years.Note: The company complies with the disclosure requirements of "Shenzhen Stock Exchange IndustryInformation 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 | 6,204,257.81 |
| 2 | TianYue Bay No.1 | 4,023,661.92 |
| 3 | Shenfang Square | 3,606,476.19 |
| 4 | Shenfang CuiLin Community | 2,040,657.14 |
33. Taxes and surcharges
Presented in RMB
| Item | Current amount | Amount of previous period |
| Urban maintenance and construction tax | 399,425.47 | 569,808.42 |
| Education surcharge | 148,368.34 | 244,769.19 |
| Property tax | 4,442,905.62 | 797,547.13 |
| Land use tax | 269,300.75 | 271,394.26 |
| Vehicle and vessel usage tax | 840.00 | |
| Stamp duty | 126,022.39 | 48,899.52 |
| Land appreciation tax | 1,445,480.40 | 59,792,949.35 |
| Local education surcharge | 99,335.89 | 162,868.57 |
| Embankment protection fees | 661.27 | 7,791.12 |
| Total | 6,931,500.13 | 61,896,867.56 |
Other notes:
34. General and administrative expenses
Presented in RMB
| Item | Current amount | Amount of previous period |
| Employee benefits | 20,470,686.17 | 15,886,780.81 |
| Depreciation | 1,290,494.93 | 1,257,650.48 |
| Entertainment expenses | 139,543.96 | 848,919.03 |
| Professional fee | 1,495,211.60 | 1,008,889.63 |
| Travel expense | 11,737.18 | 65,435.94 |
| Office expenses | 378,111.89 | 648,239.75 |
| Maintenance expenses | 84,456.19 | 128,922.09 |
| Utilities | 135,999.59 | 137,684.88 |
| Amortization | 225,150.98 | 251,350.50 |
| Others | 2,840,311.98 | 3,219,326.34 |
| Total | 27,071,704.47 | 23,453,199.45 |
Other notes
35. Selling and distribution expense
Presented in RMB
| Items | Current amount | Amount of previous period |
| Employee benefits | 1,707,893.58 | 1,571,290.26 |
| Advertising expenses | 1,286,084.16 | 2,202,118.31 |
| Entertainment expenses | 50,519.00 | 218,421.79 |
| Commissions | 410,737.19 | 1,629,485.30 |
| Others | 1,990,505.15 | 3,169,324.52 |
| Total | 5,445,739.08 | 8,790,640.18 |
Other notes:
36. Financial expense
Presented in RMB
| Items | Current amount | Amount of previous period |
| Interest expense | 3,071,652.11 | 1,609,531.95 |
| Less: Interest income | 4,839,207.82 | 716,366.12 |
| Less: capitalized interest | 2,183,480.34 | 1,609,531.95 |
| Exchange losses/-gains | -1,288,116.33 | 11,609.26 |
| Less: Exchange losses and gains capitalized | ||
| Others | 84,134.44 | 92,489.15 |
| Total | -5,155,017.94 | -612,267.71 |
Other notes
37. Other Income
Presented in RMB
| Items (Source of other income) | Current amount | Amount of previous period |
| Refund of procedure fee of personal income tax | 79,383.55 | 68,364.83 |
| VAT deduction | 54,434.68 | |
| Stable Job Subsidy | 1,000.00 | 932.80 |
| Others | 2,627.57 |
38. Income from changes in fair value
Presented in RMB
| The source of the fair value change income | Current amount | Amount of previous period |
| Trading financial assets | 9,721,583.19 | 3,477,115.56 |
| Total | 9,721,583.19 | 3,477,115.56 |
Other notes:
39. Investment Income
Presented in RMB
| Item | Current amount | Amount of previous period |
| Investment income from holding held-for-trading financial assets | 161,491.79 | |
| Dividend income from other equity instrument investments during the holding period | 777,600.00 |
| Other | 1,644,822.69 | |
| Total | 777,600.00 | 1,806,314.48 |
Other notes
40. Credit impairment loss
Presented in RMB
| Items | Current amount | Amount of previous period |
| Bad debt losses on notes receivables | 80,850.00 | |
| Bad debt losses on accounts receivables | -29,019.90 | 440,326.78 |
| Bad debt losses on other receivables | 187.94 | 8,000.00 |
| Impairment loss on contract assets | ||
| Total | -28,831.96 | 529,176.78 |
Other notes
41. Impairment loss of assets
Presented in RMB
| Items | Current amount | Amount of previous period |
| Impairment loss of assets | 652,630.46 | |
| Total | 652,630.46 |
Other notes:
42. Income form disposal of assets
Presented in RMB
| The source of the proceeds from the disposal of the asset | Current amount | Amount of previous period |
| Disposal of fixed assets | 223,872.34 |
43. Non-operating income
Presented in RMB
| Items | Current amount | Amount of previous period | The amount included in the non-recurring profit or loss for the current period |
| Penalty/Default Income | 987,728.59 | 7,202.16 | |
| Income from insurance claims | 200,800.00 | ||
| Others | 10,274.56 | ||
| Total | 1,188,528.59 | 17,476.72 |
Other notes:
44. Non-operating expenses
Presented in RMB
| Items | Current amount | Amount of previous period | Amount counted to the current non-operating gain and loss |
| Donations provided | 30,000.00 | 30,000.00 | |
| Others | 183.63 | 21,480.63 | |
| Total | 30,183.63 | 51,480.63 |
Other notes:
45. Income tax expense
(1) List of income tax expense
Presented in RMB
| Items | Current amount | Amount of previous period |
| Current tax expense for the year | 306,836.88 | -29,856,527.82 |
| Deferred tax expense | -88,329.52 | 27,275,898.77 |
| Total | 218,507.36 | -2,580,629.05 |
(2) Reconciliation between income tax expenses and accounting profit is as follows:
Presented in RMB
| Item | Current amount |
| Profits/losses before tax | 5,086,946.29 |
| Expected income tax expenses at applicable tax rate | 1,271,736.57 |
| Impact of different tax rates applied to certain subsidiaries | 76,653.96 |
| Adjustment of income tax for the current period of the previous period | 1,276,405.27 |
| Impact of tax-free income | -2,624,795.80 |
| Income tax expenses | 218,507.36 |
Other notes
46. Other comprehensive income
Refer to Note for details.
47. Cash Flow Statement
(1) Cash related to operating activities
Other cash received in connection with operating activities
Presented in RMB
| Item | Current amount | Amount of previous period |
| Interest income | 4,719,216.02 | 451,599.51 |
| Current payments and others | 44,736,369.97 | 73,770,016.81 |
| Total | 49,455,585.99 | 74,221,616.32 |
Description of other cash received in connection with operating activities:
Other cash paid in connection with operating activities
Presented in RMB
| Items | Current amount | Amount of previous period |
| Fees | 84,134.44 | 92,489.15 |
| Pay the cash fee | 21,499,935.35 | 8,490,955.36 |
| Current payments and others | 47,211,647.35 | 132,776,565.29 |
| Total | 68,795,717.14 | 141,360,009.80 |
Notes:
(2) Cash related to other investing activities
Other cash received in connection with investing activities
Presented in RMB
| Items | Current amount | Amount of previous period |
| Redemption of money market funds | 136,800,000.00 | |
| Total | 136,800,000.00 |
Notes:
Other cash paid in connection with investment activities
Presented in RMB
| Items | Current amount | Amount of previous period |
| Purchase of money market funds | 40,000,000.00 | |
| Total | 40,000,000.00 |
Notes:
(3) Cash related to other financing activities
Other cash received in connection with financing activities
Presented in RMB
| Items | Current amount | Amount of previous period |
Notes:
Other cash paid in connection with financing activities
Presented in RMB
| Items | Current amount | Amount of previous period |
Notes:
(4) Statement of cash flows on a net basis
| Items | Relevant factual circumstances | The basis for the use of net presentation | Financial Implications |
(5) Significant activities and financial impacts that do not involve current cash receipts and expenditures,but affect the financial position of the enterprise or may affect the cash flow of the enterprise in thefuture
48. Supplementary information of the cash flow statement
(1) Supplementary information of the cash flow statement
Presented in RMB
| Supplementary information | Current amount | Amount of previous period |
| 1. Adjust net profit to cash flow from operating activities: | ||
| Net profit | 4,868,438.93 | -38,658,122.97 |
| Add: Provisions for impairment of assets | 623,798.49 | 529,176.78 |
| Depreciation of Fixed Assets, Depreciation of Investment Real Estate, Depreciation of Oil and Gas Assets, Depreciation of Productive Biological Assets | 13,966,419.51 | 14,214,001.61 |
| Depreciation of Right-of-use Assets | 66,427.62 | 66,427.62 |
| Amortization of intangible assets | ||
| Amortization of long-term deferred expenses | 246,606.72 | 367,035.40 |
| Loss on disposal of fixed assets, intangible assets and other long-term assets (marked with "-" for gains) | -223,872.34 | |
| Loss on the scrapping of fixed assets (marked with "-" for income) | -2,009.21 | |
| Loss from changes in fair value (marked with "-" for earnings) | -9,721,583.19 | -3,477,115.56 |
| Financial expenses (revenue marked with "-") | 399,944.56 | 11,609.26 |
| Loss on investment (marked with "-" for income) | -777,600.00 | -1,806,314.48 |
| Deferred tax assets decreased (marked with "-" for increase) | -88,329.52 | -29,856,527.82 |
| Deferred tax liability increased (marked with "-" for decrease) | ||
| Decrease in stock (marked with "-" for increase) | -104,561,681.25 | -17,204,930.10 |
| Decrease of operating receivable items (marked with "-" for increase) | -86,943,818.20 | -28,003,759.61 |
| Increase in operational payable items (marked with "-" for decrease) | 73,695,716.61 | -88,320,418.96 |
| Other | ||
| Net cash flow from operating activities | -108,449,532.06 | -192,140,948.04 |
| 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 | 607,550,724.73 | 174,781,114.58 |
| Minus: Opening balance of cash | 859,146,413.35 | 190,365,069.48 |
| Plus: Ending balance of cash equivalents | ||
| Minus: Beginning balance of cash equivalents | ||
| Net increase in cash and cash equivalents | -251,595,688.62 | -15,583,954.90 |
(2) Composition of cash and cash equivalents
Presented in RMB
| Items | Closing balance | Opening balance |
| Cash | 607,550,724.73 | 859,146,413.35 |
| Including: cash at bank and on hand | 12,863.36 | 18,414.04 |
| A bank deposit that can be used for payment at any time | 569,636,355.28 | 829,127,999.31 |
| Funds in other currencies that can be used for payment at any time | 37,901,506.09 | 30,000,000.00 |
| Cash and cash equivalents at 30 June 2024 | 607,550,724.73 | 859,146,413.35 |
Other notes:
49. 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 amountadjusted:
50. Foreign currency monetary items
(1) Foreign currency monetary items
Presented in RMB
| Item | Ending Foreign Currency Balance | Discount rate | Balance converted into RMB at the end |
| Monetary fund | 5,123,125.64 | ||
| Including: USD | 48,375.41 | 7.1268 | 344,761.87 |
| EUR | |||
| HKD | 5,235,530.27 | 0.91268 | 4,778,363.77 |
| Accounts receivable | 177,338.59 | ||
| Including: USD | 24,883.34 | 7.1268 | 177,338.59 |
| EUR | |||
| HKD | |||
| Other receivables | 18,270,247.40 | ||
| Including: USD | |||
| EUR | |||
| HKD | 20,018,240.13 | 0.91268 | 18,270,247.40 |
| Other payables | 8,587,793.10 | ||
| Including: USD | 722,044.70 | 7.1268 | 5,145,868.17 |
| EUR | |||
| HKD | 3,771,228.62 | 0.91268 | 3,441,924.94 |
| Long-term loans | |||
| Including: USD | |||
| EUR | |||
| HKD |
Other notes:
(2) Note to overseas operating entities, including important overseas operating entities, which should bedisclosed 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
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 theReporting Period
Presented in RMB
| Name of acquiree | Time and place of gaining the equity | Cost of gaining the equity | Proportion of equity | Way to gain the equity | Purchase date | Recognition basis of purchase date | Income of acquiree from the purchase date to period-end | Net profits of acquiree from the purchase date to period-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:
(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 valueWhether there are multiple transactions to achieve the business merger step by step and gain control during thereporting period
□ Yes √ No
(5) If it is impossible to reasonably determine the merger consideration or the fair value of the assets andliabilities recognized by the purchaser on the purchase date or at the end of the current period, the Groupshall 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
| Combined party | Proportion of the equity | Basis | Combination date | Recognition basis of combination date | Income from the period-begin to the combination date of the acquiree | Net profits from the period-begin to the combination date of the acquiree | Income of the acquiree during the period of comparison | Net profits of the acquiree during the period of comparison |
Other notes:
(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 |
Explanation of contingent consideration and its variation:
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, liabilitiesof 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 reductionof 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.) andrelevant situations:
The scope of consolidation was reduced.
| Name of the Subsidiary | Equity disposal method | Equity disposal time point | Net assets on disposal date | Net profit from the beginning of the period to the date of disposal |
| Xinfeng Real Estate Company Limited | Liquidation write-off | January of 2024 | 692.2 thousand yuan | 0 |
6. Others
IX. Interest in other entities
1. Interests in subsidiaries
(1) Composition of the Group
Presented in RMB
| Subsidiaries | Registered capital | Main operating place | Place of registration | Business nature | Holding proportion (%) | Acquisition method | |
| Direct | Indirect | ||||||
| Shenzhen SPG Longgang Development Co., Ltd. | 30,000,000.00 | Shenzhen | Shenzhen | Real estate | 95.00% | 5.00% | Establishment |
| Great Wall Estate Company, Inc. | USD 500,000.00 | U.S. | U.S. | Real estate | 70.00% | Establishment | |
| Shenzhen Petrel Hotel Co., Ltd. | 30,000,000.00 | Shenzhen | Shenzhen | Hotel services | 68.10% | 31.90% | Establishment |
| Shenzhen Zhentong Engineering Co., Ltd. | 10,000,000.00 | Shenzhen | Shenzhen | Construction | 73.00% | 27.00% | Establishment |
| Shenzhen Huazhan Construction Supervision Co., Ltd. | 8,000,000.00 | Shenzhen | Shenzhen | Construction | 75.00% | 25.00% | Establishment |
| Shenzhen Lianhua Enterprise Co., Ltd. | 10,000,000.00 | Shenzhen | Shenzhen | Construction | 95.00% | 5.00% | Establishment |
| Xinfeng Enterprise Co., Ltd. | TWD 5.00 million | Hong Kong SAR | Hong Kong SAR | Investment and management | 100.00% | Establishment | |
| Shenzhen SPG Free Trading Co., Ltd. | 5,000,000.00 | Shenzhen | Shenzhen | Import and export trade | 95.00% | 5.00% | Establishment |
| Shenzhen | 10,000,000 | Shenzhen | Shenzhen | Investment | 90.00% | 10.00% | Establishmen |
| SPG Investment Co., Ltd. | .00 | t | |||||
| Beijing Xinfeng Real Estate Management & Development Co., Ltd. | USD 10.00 million | Beijing | Beijing | Real estate | 75.00% | 25.00% | Establishment |
| Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd. | 2,800,000.00 | Huizhou | Huizhou | Real estate | 51.00% | Business combination not under common control | |
| Shenzhen SPG Chuanqi Real Estate Development Co., Ltd. | 3,000.00 | Shenzhen | Shenzhen | Real estate | 100.00% | Establishment |
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 halfof 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:
The Company has brought the following 3 subsidiaries which have been suspended for a long time and whosebusiness license has been revoked but not canceled into the consolidation scope: Guangzhou Huangpu XincunReal Estate Development Co., Ltd., Xinfeng Real Estate Development and Construction (Wuhan) Co., Ltd. andBeijing Xinfeng Real Estate Development & Management Co., Ltd. The above subsidiaries have been presentedas discontinued operations, with full provision for impairment on their creditor’s right to debtors beyond theconsolidation scope of the Company.
(2) Significant not wholly-owned subsidiaries
Presented in RMB
| Subsidiaries | Holding proportion of non-controlling shareholders | Non-controlling shareholders’ profit or loss | Dividend declared to non-controlling shareholders | Closing balance of non-controlling interest |
| Great Wall Estate Company, Inc. | 30.00% | -152,313.68 | -22,962,253.30 | |
| Xinfeng Investment Co., Ltd. | 45.00% | 0.00 | -116,179,868.81 | |
| Baiwei Real Estate Co., Ltd. | 20.00% | 0.00 | -3,892,111.41 | |
| Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd. | 49.00% | -703,606.78 | 227,238,723.28 |
Note to shareholding ratio of minority shareholder is different from the voting ratio:
Other notes:
(3) Key financial information about material non-wholly owned subsidiaries
Presented in RMB
| Subsidiaries | Closing balance | Opening balance | ||||||||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
| Great Wall Estate Company, Inc. | 511,860.82 | 19,641,273.17 | 20,153,133.99 | 112,488,159.99 | 112,488,159.99 | 395,377.20 | 19,569,160.13 | 19,964,537.33 | 111,791,851.06 | 111,791,851.06 | ||
| Xinfeng Investment Co., Ltd. | 1,648,020.85 | 36,016.90 | 1,684,037.75 | 260,111,230.95 | 260,111,230.95 | 69,786.71 | 36,016.90 | 105,803.61 | 258,283,372.85 | 258,283,372.85 | ||
| Baiwei Real Estate Co., Ltd. | 1,068.77 | 1,068.77 | 33,158,116.63 | 33,158,116.63 | 1,061.18 | 1,061.18 | 32,920,988.91 | 32,920,988.91 | ||||
| Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd. | 1,522,879,624.93 | 6,786,931.09 | 1,529,666,556.02 | 1,556,535,493.88 | 1,556,535,493.88 | 1,525,466,547.38 | 7,070,465.17 | 1,532,537,012.55 | 1,557,970,018.20 | 1,557,970,018.20 | ||
Presented in RMB
| Subsidiaries | Current amount | Amount of previous period | ||||||
| Operating revenue | Net profit | Total comprehensive income | Cash flows from operating activities | Operating revenue | Net profit | Total comprehensive income | Cash flows from operating activities | |
| Great Wall Estate Company, Inc. | 346,981.69 | -169,152.27 | -169,152.27 | 169,779.17 | 340,294.12 | -142,447.83 | -142,447.83 | -30,443.57 |
| Xinfeng Investment Co., Ltd. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -574.87 | -574.87 | 0.00 |
| Baiwei Real Estate Co., Ltd. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -992.71 | -992.71 | 0.00 |
| Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd. | 0.00 | -1,435,932.21 | -1,435,932.21 | -4,194,941.00 | 0.00 | -4,071,785.25 | -4,071,785.25 | -14,762,328.06 |
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 theconsolidated financial statementsOther notes:
2. Transactions that cause changes in the Group’s interests in subsidiaries that do not result in loss ofcontrol
(1) Changes in the Group’s interests in subsidiaries:
(2) Impact from transactions with non-controlling interests and equity attributable to the owners of theGroup:
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
| Name | Main operating place | Registration place | Nature of business | Shareholding percentage (%) | Accounting treatment of the investment to joint venture or associated enterprise | |
| Directly | Indirectly | |||||
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 votingrights but does not have a significant impact:
(2) Key financial information of material joint ventures:
Presented in RMB
| Ending balance/amount incurred in the reporting period | Opening balance/amount incurred 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 the reporting period | Opening balance/amount incurred in the previous period | |
| Current assets |
| 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
| Closing balance/ Current amount | Opening balance/Amount of previous period | |
| Joint ventures: | ||
| The total number of the following items based on shareholding ratio | ||
| Associates: | ||
| The total number of the following items based on shareholding ratio |
Other notes
(5) Material restrictions on transfers of funds from investees to the Group
(6) Excess loss from joint ventures or associates
Presented in RMB
| Name of the joint ventures or associates | loss in prior periods | Unrecognized loss (or share of net profit) for the reporting period | Accumulated unrecognized loss as at 30 Jun. 2024 |
| Shenzhen Xinfeng Real Estate Consultants Co., Ltd | 2,217,955.89 | 2,217,955.89 |
Other notes
(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
| Name | Main operating place | Registration place | Nature of business | Proportion /Share portion | |
| 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 financialstatementsNote to structured entities not included in the scope of consolidated financial statements:
6. Other
X.Government grants
1. Government subsidies recognized at the end of the reporting period on the basis of receivables
□Applicable ? Inapplicable
The reason for not receiving the estimated amount of government assistance at the expected point in time:
□Applicable ? Inapplicable
2. Liabilities involving government grants
□Applicable ? Inapplicable
3. Government grants included into profit or loss
?Applicable □ Inapplicable
Presented in RMB
| Ledger accounts | Current amount | Amount of previous period |
| The amount of government subsidies included in the profit or loss for the current period | 83,011.12 | 123,732.31 |
Other notes:
XI. Risks related to financial instruments
1. Types of risks arising from financial instruments
In risk management, the Company aims to seek the appropriate balance between the risks and benefits from itsuse of financial instruments and to mitigate the adverse effects that the risks of financial instruments have on theCompany’s financial performance, so as to maximize the profits of shareholders and other equity investors.Based on such risk management objectives, the Company’s risk management policies are established to identifyand analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks andadherence to limits on a timely and reliable basis.The Company has exposure to the following risks from its use of financial instruments, which mainly include:
credit risk, liquidity risk, and market risk. The Management has deliberated and approved policies concerningsuch risks, and details are:
(I) Credit riskCredit risk is the risk that one party to a financial instrument will cause a financial loss for the other party byfailing to discharge an obligation.
(1) Credit risk management practice
1) Evaluation method of credit risk
At each balance sheet date, the Company assesses whether the credit risk on a financial instrument has increasedsignificantly since initial recognition. When assessing whether the credit risk has increased significantly sinceinitial recognition, the Company takes into account reasonable and supportable information, which is availablewithout undue cost or effort, including qualitative and quantitative analysis based on historical data, externalcredit risk rating, and forward-looking information. The Company determines the changes in default risk offinancial instruments during the estimated lifetime through comparison of the default risk at the balance sheet dateand the initial recognition date, on an individual basis or a collective basis.The Company considers the credit risk on a financial instrument has increased significantly when one or more ofthe following qualitative and quantitative standards are met:
A. Quantitative standard mainly relates to the scenario in which, at the balance sheet date, the probability ofdefault in the remaining lifetime has risen by more than a certain percentage compared with the initial recognition;B. Qualitative standard mainly relates to significant adverse changes in the debtor’s operation or financial position,present or expected changes in technology, market, economy or legal environment that will have significantadverse impact on the debtor’s repayment ability;
2) Definition of default and credit-impaired assets
A financial instrument is defined as defaulted when one or more following events have occurred, of which thestandard is consistent with that for credit-impairment:
A. significant financial difficulty of the debtor;
B. a breach of binding clause of contract;C. it is very likely that the debtor will enter bankruptcy or other financial reorganization;D. the creditor of the debtor, for economic or contractual reasons relating to the debtor’s financial difficulty,having granted to the debtor a concession(s) that the creditor would not otherwise consider.
(2) Measurement of expected credit losses
The key factors in the measurement of expected credit loss include the probability of default, loss given default,and exposure to default risk. The Company develops a model of the probability of default, loss given default, andexposure to default risk on the basis of quantitative analysis of historical data (e.g., counterparty rating, guaranteemeasures and collateral type, payment method, etc.) and forward-looking information.
(3) Exposure to credit risk and concentration of credit risk
The Company’s credit risk is primarily attributable to cash and bank balances and receivables. In order to controlsuch risks, the Company has taken the following measures:
1) Cash and bank balances
The Company deposits its bank balances and other cash and bank balances in financial institutions with relativelyhigh credit levels, hence, its credit risk is relatively low.
2) Receivables and contract assets
The Company performs credit assessment on customers using credit settlement on a regular basis. The Companyselects credible and well-reputed customers based on credit assessment result, and conducts ongoing monitoringon balance of receivables, to avoid significant risks in bad debts.As the Company’s credit risks fall into several business partners and customers, the Company manages credit riskaggregated by customers. As of 30 June, 2024, the Company has certain concentration of credit risk, and 37.23%(December 31, 2023: 36.46%) of the total accounts receivable and contract assets was due from the five largestcustomers of the Company. The Company held no collateral or other credit enhancement on balance of receivablesor contract assets.The maximum amount of exposure to credit risk of the Company is the carrying amount of each financial asset atthe balance sheet.(II) Liquidity riskLiquidity risk is the risk that the Company may encounter deficiency of funds in meeting obligations associatedwith cash or other financial assets settlement, which is possibly attributable to failure in selling financial assets atfair value on a timely basis, or failure in collecting liabilities from counterparties of contracts, or early redemptionof debts, or failure in achieving estimated cash flows.
In order to control such risk, the Company comprehensively utilizes financing tools such as notes settlement, bankborrowings, etc. and adopts long-term and short-term financing methods to optimize financing structures, andfinally maintains a balance between financing sustainability and flexibility. The Company has obtained credit limitfrom several commercial banks to meet working capital requirements and expenditures.
(1) Financial liabilities classified based on remaining time period till maturity
| Items | Closing balance | ||||
| Book value | Contract amount not yet discounted | Within 1 year | 1-3 years | Over 3 years | |
| Short-term borrowings | 10,310,396.09 | 10,371,534.34 | 10,371,534.34 | ||
| Accounts payable | 403,762,092.10 | 403,762,092.10 | 403,762,092.10 | ||
| Other payables | 542,929,961.14 | 542,929,961.14 | 542,929,961.14 | ||
| Non-current liabilities due within one year | 50,316,649.66 | 54,669,326.67 | 54,669,326.67 | ||
| Other current liabilities | 132,138,332.74 | 132,138,332.74 | 132,138,332.74 | ||
| Long-term borrowings | 62,336,264.42 | 68,739,929.06 | 4,794,059.25 | 63,945,869.81 | |
| Subtotal | 1,201,793,696.15 | 1,212,611,176.04 | 1,143,871,246.99 | 4,794,059.25 | 63,945,869.81 |
(Continued)
| Items | 31 December, 2023 | ||||
| Book value | Contract amount not yet discounted | Within 1 year | 1-3 years | Over 3 years | |
| Short-term borrowings | 3,550,000.00 | 3,683,125.00 | 3,683,125.00 | ||
| Accounts payable | 443,259,768.78 | 443,259,768.78 | 443,259,768.78 | ||
| Other payables | 554,469,229.59 | 554,469,229.59 | 554,469,229.59 | ||
| Non-current liabilities due within one year | 34,056,347.93 | 41,741,101.03 | 41,741,101.03 | ||
| Other current liabilities | 20,790,361.58 | 20,790,361.58 | 20,790,361.58 | ||
| Long-term borrowings | 179,431,851.02 | 187,773,026.94 | 122,834,289.80 | 64,938,737.14 | |
| Subtotal | 1,235,557,558.90 | 1,251,716,612.92 | 1,063,943,585.98 | 122,834,289.80 | 64,938,737.14 |
(III) Market riskMarket risk is the risk that the Company may encounter fluctuation in fair value or future cash flows of financialinstruments due to changes in market price. Market risk mainly includes interest risk and foreign currency risk.
(1) Interest risk
Interest risk is the risk that an enterprise may encounter fluctuation in fair value or future cash flows of financialinstruments due to changes in market interest rates. The Company’s fair value interest risks arise from fixed-ratefinancial instruments, while the cash flow interest risks arise from floating-rate financial instruments. TheCompany determines the proportion of fixed-rate financial instruments and floating-rate financial instrumentsbased on the market environment, and maintains a proper financial instruments portfolio through regular reviewand monitoring. The Company’s interest risk in cash flows relates mainly to bank borrowings with floatinginterest rate.
As of 30 June, 2024, balance of borrowings with interest accrued at floating interest rate totaled 62,336,264.42yuan (December 31, 2023: 0 yuan). If interest rates had been 50 basis points higher/lower and all other variableswere held constant, the Company’s gross profit and equity will not be significantly affected.
(2) Foreign currency risk
Foreign currency risk is the risk arising from changes in fair value or future cash flows of financial instrumentresulted from changes in exchange rate. The Company’s foreign currency risk relates mainly to foreign currencymonetary assets and liabilities. When short-term imbalance occurred to foreign currency assets and liabilities, theCompany may trade foreign currency at market exchange rate when necessary, in order to maintain the net riskexposure within an acceptable level.The exchange rate risk mainly refers to the impact of foreign exchange rate fluctuations on the financial conditionand cash flow of the Company. Except for subsidiaries established in Hong Kong SAR that hold assetsdenominated in Hong Kong dollars, the Company only engages in small-scale Hong Kong market investmentbusiness. The proportion of foreign currency assets and liabilities held by the Company to the overall assets andliabilities is insignificant, hence, the Company considers that the exposure to exchange rate risk is not material.For details of monetary assets and liabilities denominated in foreign currencies at the end of the period, pleaserefer to '70. Monetary assets and liabilities denominated in foreign currencies’ in '(Ⅶ) Notes to ConsolidatedFinancial Statements’ of this financial report.XII.Fair Value
1. Items and amounts measured at fair value at the end of reporting period
Presented in RMB
| Items | Amounts at 30 June 2024 | |||
| The first level of fair value measurement | The second level of fair value measurement | The third level of fair value measurement | Total | |
| I.Recurring fair value measurement | -- | -- | -- | -- |
| 1. Financial assets at fair value through profit or loss | 929,061,785.11 | 929,061,785.11 | ||
| Monetary fund | 929,061,785.11 | 929,061,785.11 | ||
| 2.Financial assets designated at fair value through profit or loss | 15,060,340.13 | 15,060,340.13 | ||
| Investments in other equity instrument | 15,060,340.13 | 15,060,340.13 | ||
| Total assets measured at fair value on a recurring basis | 929,061,785.11 | 15,060,340.13 | 944,122,125.24 | |
| 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 valueThe Company's financial assets held for trading are currency fund products purchased from China ConstructionBank Corporation, for which unadjusted quoted prices in active markets for identical assets were available atthe balance sheet date.
3. Items measured based on the continuous or uncontinuous 2nd level fair value, valuation technique asused, nature of important parameters and quantitative informationNone.
4. Items measured based on the continuous or uncontinuous 3rd level fair value, valuation technique asused, nature of important parameters and quantitative informationNone.
5. Items measured based on the continuous 3rd level fair value, sensitivity analysis on adjustedinformation and unobservable parameters between the book value at beginning and end of the periodFor receivable financing not traded in an active market, which has a short remaining term and Book valueapproximates fair value, Book value is used to determine its fair value. For investments in other equityinstruments that are not traded in an active market, where the amount of the investment is small and the changein the net assets of the investee is small and the Book value approximates the fair value, the Book value is usedto determine its fair value.
6. In case items measured based on fair value are converted between different levels incurred in thecurrent period, state the cause of conversion and determine conversion time pointNone.
7. Change of valuation technique incurred in the current period and cause of such changeNone.
8. the carrying value of other financial assets and financial liabilities which are not measured at fairvalue variesThe Company's financial assets and financial liabilities that are measured at amortized cost consist mainly ofcash funds, notes receivable, accounts receivable, other receivables, short-term borrowings, accounts payable,other payables, long-term borrowings and lease liabilities.The difference between the book value and the fair value of the Company's financial assets and financialliabilities not measured at fair value is insignificant.
9. Other
None.
XIII.Related parties and related party transactions
1. Information about the parent of the Group
| Parent company name | Registration place | Business nature | Registered capital | Shareholding percentage % | Percentage of voting rights % |
| Shenzhen Investment Holdings Co., Ltd. | Shenzhen Investment Holdings Co., Ltd. | Shenzhen Investment Holdings Co., Ltd. | Shenzhen Investment Holdings Co., Ltd. | Shenzhen Investment Holdings Co., Ltd. | Shenzhen Investment Holdings Co., Ltd. |
Note:
The ultimate controlling party of the Group is State-owned Assets Supervision and Management Commission ofShenzhen Municipal People’s Government.Other notes:
2. Information about the subsidiaries of the Group
Please refer to Note X for the description of the Company's subsidiaries in details.
3. Information about joint ventures and associates of the Group
Please refer to Note X for the description of the Company's significant joint ventures or associates in details.Joint ventures and associates that have related party transactions with the Group during this year or the previousyear are as follows:
| Name of joint ventures or associates | Relationship with the Group |
Other notes:
4. Information on other related parties
| Related parties | Relationships with the Company |
| Shenzhen Jian’an (Group) Co., Ltd. | Controlling subsidiary of the parent company |
| Shenzhen Oriental New World Department Store Co., Ltd. | Investee |
| Shenzhen Shenxi Building Decoration Co., Ltd. | Revoked but not canceled controlling subsidiary not brought into the consolidation scope |
| Shenzhen Zhentong New Electromechanical Industrial Development Co., Ltd. | Long-term discontinued controlling subsidiary not brought into the consolidation scope |
| Shenzhen Nanyang Hotel Co., Ltd. | Revoked but not canceled controlling subsidiary not brought into the consolidation scope |
| Shenzhen Real Estate Electromechanical Management Co., Ltd. | Revoked but not canceled controlling subsidiary not brought into the consolidation scope |
| Shenzhen Longgang Henggang Huagang Industrial Co., Ltd. | Revoked but not canceled controlling subsidiary not brought into the consolidation scope |
| Guangzhou Bopi Enterprise Management Consulting Co., Ltd. | Shareholder of subsidiaries |
| Shenzhen Property Management Co., Ltd. | Controlling subsidiary of the parent company |
| Guoren Property Insurance Co., Ltd. | Controlling subsidiary of the parent company |
| Shenzhen Water Planning and Design Institute Co., | Controlling subsidiary of the parent company |
| Ltd. | |
| Shenzhen General Institute of Architectural Design and Research Co., Ltd. | Controlling subsidiary of the parent company |
| Shenzhen SPG Property Cleaning Co., Ltd. | Controlling subsidiary of the parent company |
| Shenzhen Property Management Co., Ltd. Shantou Branch | Controlling subsidiary of the parent company |
| Shenzhen Guomao Property Management Co., Ltd. | Controlling subsidiary of the parent company |
| Shenzhen Xinfeng Real Estate Consulting Co., Ltd. | Investee |
| Guangdong Huizhou Luofushan Mineral Water Beverage Co., Ltd. | Investee |
| Shenzhen Runhua Automobile Trading Co., Ltd. | Investee |
| Canada Great Wall (Vancouver) Co., Ltd. | Investee |
| Australia Berkton Property Limited | Investee |
| Paklid Limited | Investee |
| Shenzhen Shenfang Department Store Co., Ltd. | Investee |
| Shenzhen Ronghua Electromechanical Engineering Co., Ltd. | Investee |
| Xi’an Xinfeng Property Trading Co., Ltd. | Investee |
| Fengkai Lianfeng Cement Manufacturing Co., Ltd. | Investee |
| Beijing SPG Property Management Co., Ltd. | Investee |
Other notes
5. Related party transactions
(1) Purchase and sale of goods, rendering and receiving of services
The list of purchase of goods and receiving of services
Presented in RMB
| Related parties | Content of transactions | Current amount | Amount of transactions approved | Whether the transaction limit is exceeded | Amount of previous period |
| Shenzhen Property Management Co., Ltd. Shantou Branch | Property services | 1,180,561.20 | No | 1,049,250.38 | |
| Shenzhen Property Management Co., Ltd. | Property services | 263,926.72 | No | 352,967.09 | |
| Shenzhen SPG Property Cleaning Co., Ltd. | Cleaning services | 0.00 | No | 22,924.56 | |
| Guoren Property Insurance Co., Ltd. | Insurance services | 80,202.94 | No | 80,263.00 |
The list of sale of goods and rendering of services.
Presented in RMB
| Related parties | Content of transactions | Current amount | Amount of previous period |
| Guoren Property | Leasing services | 421,519.98 | 421,519.98 |
| Insurance Co., Ltd. | |||
| Shenzhen Property Management Co., Ltd. | Leasing services | 2,485,951.92 | 2,678,833.32 |
| Shenzhen SPG Property Cleaning Co., Ltd. | Leasing services | 19,999.98 |
Note:
(2) Affiliated Management/Contracting and Delegated Management/Contracting OutThe Company's fiduciary/contracting schedule:
Presented in RMB
| Name of commissioner/contractor | Name of trustee/sub-contractor | Type of assets entrusted/contracted | Inception date of trust/contracting | Maturity date of trust/contracting | Basis for pricing of hosting/contracting income | Trust/contracting revenue recognized in the reporting period |
Affiliated Escrow/Contracting Fact SheetThe Company's Statement of Affiliated Trusteeship/Contracting Status:
Presented in RMB
| Name of the commissioner/contractor | Name of the trustee/contractor | Type of assets commissioned/contracted | Commissioning/contracting start date | Commissioning/contracting end date | Escrow/contracting fee pricing basis | Escrow/contracting fee recognized in the period |
Note:
(3) Related party leases
The Company as the lessor:
Presented in RMB
| Lessees | Types of assets leased | Lease income for the current period | Lease income for the preceding period |
| Guoren Property Insurance Co., Ltd. | Buildings and structures | 421,519.98 | 421,519.98 |
| Shenzhen Property Management Co., Ltd. | Buildings and structures | 2,485,951.92 | 2,678,833.32 |
| Shenzhen SPG Property Cleaning Co., Ltd. | Buildings and structures | 19,999.98 |
The Company as the lessee:
Presented in RMB
| Lesser | Type of assets leased | Rental costs for simplified short-term leases and low value asset leases (if applicable) | Variable lease payments not included in the measurement of lease liabilities (if applicable) | Rent paid | Interest expense on lease liability | Increased right-of-use assets |
| Current amount | Amount of previous period | Current amount | Amount of previous period | Current amount | Amount of previous period | Current amount | Amount of previous period | Current amount | Amount of previous period |
Note:
(4) Guarantee between related parties
The Company as the guarantor
Presented in RMB
| Guarantee holder | Amount of guarantee | Inception date of guarantee | Maturity date of guarantee | Guarantee expired (Y/N) |
The Company as the guarantee holder
Presented in RMB
| Guarantor | Amount of guarantee | Inception date of guarantee | Maturity date of guarantee | Guarantee expired (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 | Current amount | Amount of previous period |
(7) Remuneration of key management personnel
Presented in RMB
| Items | Current amount | Amount of previous period |
| Remuneration of key management personnel | 3,124,891.50 | 2,521,369.00 |
(8) Other related party transactions
In order to encourage the core employees of the group to share the operating results of the market-orientedprojects with the company, share the operating risks, stimulate the endogenous motivation of improvingefficiency and increasing benefits, enhance the efficiency of asset management, and realize the preservation andappreciation of the value of state-owned assets, the company has formulated the "Management Measures forInvestment From the Staff of Shenfang Group Linxi Jun Project". According to the above-mentionedmanagement measures, the related party transactions will form a joint investment with some directors,
supervisors and senior executives of the company. As of 30 June 2024, the company's directors, supervisors andsenior 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
| Items | Related party | Closing balance | Opening balance | ||
| Book balance | Provision for bad and doubtful debts | Book balance | Provision for bad and doubtful debts | ||
| Accounts receivable | Shenzhen Xinfeng Real Estate Consulting Co., Ltd. | 1,215,543.75 | 1,215,543.75 | 1,215,543.75 | 1,215,543.75 |
| Other receivables | Guangdong Huizhou Luofushan Mineral Water Beverage Co., Ltd. | 10,465,168.81 | 10,465,168.81 | 10,465,168.81 | 10,465,168.81 |
| Other receivables | Shenzhen Runhua Automobile Trading Co., Ltd. | 3,072,764.42 | 3,072,764.42 | 3,072,764.42 | 3,072,764.42 |
| Other receivables | Canada Great Wall (Vancouver) Co., Ltd. | 89,035,748.07 | 89,035,748.07 | 89,035,748.07 | 89,035,748.07 |
| Other receivables | Australia Berkton Property Limited | 12,559,290.58 | 12,559,290.58 | 12,559,290.58 | 12,559,290.58 |
| Other receivables | Paklid Limited | 19,393,335.84 | 19,393,335.84 | 19,393,335.84 | 19,393,335.84 |
| Other receivables | Shenzhen Shenfang Department Store Co., Ltd. | 237,648.82 | 237,648.82 | 237,648.82 | 237,648.82 |
| Other receivables | Shenzhen Ronghua Electromechanical Engineering Co., Ltd. | 475,223.46 | 475,223.46 | 475,223.46 | 475,223.46 |
| Other receivables | Xi’an Xinfeng Property Trading Co., Ltd. | 8,419,205.19 | 8,419,205.19 | 8,419,205.19 | 8,419,205.19 |
| Other receivables | Shenzhen Shenxi Building Decoration Co., Ltd. | 7,660,529.37 | 7,660,529.37 | 7,660,529.37 | 7,660,529.37 |
| Other receivables | Shenzhen Nanyang Hotel Co., Ltd. | 3,168,721.00 | 3,168,721.00 | 3,168,721.00 | 3,168,721.00 |
| Other | Beijing SPG | 6,905,673.69 | 6,533,817.09 | 6,905,673.69 | 6,533,817.09 |
| receivables | Property Management Co., Ltd. |
(2) Payables from related parties
Presented in RMB
| Items | Related parties | Closing book balance | Opening book balance |
| Interest payable | Shenzhen Investment Holdings Co., Ltd. | 16,535,277.94 | 16,535,277.94 |
| Accounts payable | Shenzhen Property Management Co., Ltd. | 11,066,396.26 | 17,053,636.61 |
| Other payables | Shenzhen Property Management Co., Ltd. | 357,069.93 | 358,178.26 |
| Other payables | Shenzhen Oriental New World Department Store Co., Ltd. | 902,974.64 | 902,974.64 |
| Other payables | Fengkai Lianfeng Cement Manufacturing Co., Ltd. | 1,867,348.00 | 1,867,348.00 |
| Other payables | Shenzhen Real Estate Electromechanical Management Co., Ltd. | 14,981,420.99 | 14,981,420.99 |
| Other payables | Shenzhen Zhentong New Electromechanical Industrial Development Co., Ltd. | 8,310,832.50 | 8,310,832.50 |
| Other payables | Shenzhen Shenfang Department Store Co., Ltd. | 639,360.38 | 639,360.38 |
| Other payables | Shenzhen Longgang Henggang Huagang Industrial Co., Ltd. | 165,481.09 | 165,481.09 |
| Other payables | Guangzhou Bopi Enterprise Management Consulting Co., Ltd. | 206,903,717.13 | 206,903,717.13 |
7. Related party commitment
8. Others
XIV. Share-based payment
1. The general situation of share-based payment
□ Applicable √ Not Applicable
2. Share payment settled in equity
□ Applicable √ Not Applicable
3. Cash-settled share payments
□ Applicable √ Not Applicable
4. Modification and termination of share-based payment
5. Others
XV. Commitments and contingencies
1. Significant commitments
Significant commitments existing at the balance sheet dateAs at 30 June 2024, the Company had capital commitments of RMB150,029,597.87 yuan contracted but not yetrecognized in the financial statements.
2. Contingencies
(1) Significant contingencies existing on the balance sheet date
① Contingent liabilities arising from pending litigation and arbitration and their financial impact
| Plaintiffs | Defendants | Cause of action | Court seized of the case | Amount of subject | Remarks |
| Xi’an Xinfeng Holding limited company | Xi’an Municipal Commission of Commerce and Trade, Xi’an Commerce and Tourism Co., Ltd. | Dispute over investment compensation | Shaanxi Provincial High People’s Court | 21.54 million yuan and interest thereof | Progress of the case: under execution; Details: [Note 1] |
| Huizhou Mingxiang Economic Information Consulting Co., Ltd., Huizhou Hongfa Industry and Trade Co., Ltd. and Huizhou Jinlongsheng Industrial Co., Ltd. | Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd. | Dispute over bill payment claim | People’s Court of Huiyang District, Huizhou City | Principal of 177.15 million yuan and interest of 2.85 million yuan | Progress of the case: judgment completed, pending execution; Details: [Note 2] |
| The Company | Guangzhou Bopi Enterprise Management Consulting Co., Ltd., Evergrande Real Estate Company Pearl River Delta Real Estate Development Co., Ltd., Shenzhen Qijin Investment Co., Ltd., with Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd. as the third | Dispute over joint venture and cooperative real estate development contracts | Intermediate People’s Court of Huizhou City, Guangdong Province | 743.58 million yuan | Case progress: the case was heard and currently in the first instance; Details: [Note 3] |
| party | |||||
| The Company | Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd. | Loan contract dispute | People’s Court of Luohu District, Shenzhen City | Principal and interest totaling 395.69 million yuan | Details: [Note 4] |
| The Company | Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd., Guangzhou Bopi Enterprise Management Consulting Co., Ltd., Evergrande Real Estate Company Pearl River Delta Real Estate Development Co., Ltd., Shenzhen Qijin Investment Co., Ltd. | Loan contract dispute | People’s Court of Huiyang District, Huizhou City | Principal and interest totaling 419.52 million yuan | Progress of the case: judgement in the first instance, Guangzhou Bopi appealed and is in the second instance. Details: [Note 5] |
Note 1: Xi’an Xinfeng Property Trading Co., Ltd. (the “Xi’an Xinfeng Company”) is a joint venture withoverseas investments co-established in Xi’an by the Company’s wholly-owned subsidiary Xinfeng EnterpriseCo., Ltd. with shareholding of 67% with cash contribution, by Xi’an Commerce and Trade Building, asubsidiary of Xi’an Municipal Commission of Commerce and Trade (the “Xi’an MCCT”), with shareholding of16% with land use rights contribution, and by Hong Kong Dadiwang Industrial Investment Co., Ltd. withshareholding of 17%. The joint venture is mainly engaged in real estate development and its developmentproject is Xi’an Commerce and Trade Building. The project started construction on November 28, 1995, butwas forced to be suspended in 1996 due to serious disagreements between the cooperating parties on projectmanagement policies. In 1997, the Xi’an Municipal People’s Government forcibly withdrew the investmentsmade by Xi’an Commerce and Trade Building from Xi’an Xinfeng Company and transferred the investments toXi’an Commerce and Tourism Co., Ltd. (the “Commerce and Tourism Company”), an affiliated entity of Xi’anMCCT. However, a lawsuit regarding the investments compensation arose therefor. On December 19, 2001, theShaanxi Provincial High People’s Court issued a judgment numbered 2000 Shaan Jing Yi Chu Zi 25: a. theCommerce and Tourism Company should pay a compensation of 36.62 million yuan and interest thereof toXi’an Xinfeng Company one month after the judgment came into effect. In case of overdue performance, thedebt interest during the delayed performance period should be doubled; b. the Xi’an MCCT should bear jointand several liability for the interest on the aforementioned compensation.The assets of the Commerce and Tourism Company were auctioned off in this case, and 15.20 million yuan hasbeen recovered through execution. Based on the property clues obtained, the Company submitted multipleapplications to the Shaanxi Provincial High People’s Court for resumption of execution. As of June 30, 2024,this case is in the execution stage.As at June 30, 2024, the carrying amount of the Company's long-term equity investment in Xi'an Xinfeng wasRMB32,840,729.61yuan, for which a full provision for impairment had been made, and the carrying amount ofthe debenture was RMB8,419,205.19 yuan, for which a full provision for impairment had been made.Note 2: Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd. (“Jianbang Company”) is a subsidiary of theCompany with shareholding of 51%. Due to Jianbang Company’s inability to redeem trade acceptance due inJanuary 2022 totaling 177.15 million yuan, the plaintiffs filed a lawsuit on dispute over the bill payment claimwith the People’s Court of Huiyang District, Huizhou City. The judgement was completed on March 14, 2023and Jianbang Company was ordered to pay trade acceptance and overdue interests to three plaintiffs within 15
days (including bearing litigation and preservation costs of approximately 1.03 million yuan). As of June 30,2024, the plaintiff has applied to the Huizhou Intermediate People's Court for execution.As of June 30, 2024, Building 2 and Building 4 of the first phase of the Linxin Community project with anestimated registered price of 220 million yuan, totaling 153 units, were seized.Note 3: On April 30, 2021, the Company signed the “Cooperative Development Agreement” and “EntrustedManagement Agreement” with Guangzhou Bopi Enterprise Management Consulting Co., Ltd. (the “GuangzhouBopi”), Evergrande Real Estate Company Pearl River Delta Real Estate Development Co., Ltd. (the“Evergrande Pearl River Delta”) and Jianbang Company. Guangzhou Bopi promised that Jianbang Companyshall achieve cumulative net profits no less than 1.25 billion yuan from 2021 to 2025. If Guangzhou Bopi failsto fulfill its profit commitment, it shall make up for the difference. On June 30, 2021, due to the acquisition of51% of equity of Guangzhou Bopi by Shenzhen Qijin Investment Co., Ltd. (the “Shenzhen Qijin”), theCompany, Guangzhou Bopi, Evergrande Pearl River Delta, and Shenzhen Qijin jointly signed SupplementaryAgreement I to the “Cooperative Development Agreement”, stipulating that Shenzhen Qijin shall bear joint andseveral liability with Evergrande Pearl River Delta for Guangzhou Bopi’s profit commitment to the Companyand balance replenishment matters stipulated in the “Cooperative Development Agreement”. Due to thefundamental breach of contract by Guangzhou Bopi and Evergrande Pearl River Delta and their actual loss ofperformance ability, causing the failure to achieve the purpose and expected benefits of the contract, theCompany filed a lawsuit. This case was heard in February 2024 and is currently in the first instance.Note 4: In 2021, the Company acquired 51% of the defendant’s equity held by the person other than involved inthe case and agreed to provide interest-bearing loans to Jianbang Company based on the holding proportion.Later, Jianbang Company made borrowings from the Company in two installments and signed the “LoanAgreement”. After the agreement was signed, the Company provided borrowings to Jianbang Company inaccordance with the agreement and fulfilled its lending obligations. Both borrowings have already expired, buthave not been repaid by Jianbang Company, which constitutes a breach of contract. As a state-owned listedcompany, the Company filed a lawsuit to protect state-owned assets from losses. The first instance judgment ofthis case was made in December 2023. In January 2024, the Company received a civil judgment made by thePeople’s Court of Luohu District, Shenzhen City, Guangdong Province, stating that Jianbang Company shallrepay the principal of borrowings of 344,696,200.26 yuan and pay interest to the Company within ten days fromthe effective date of the judgment; Jianbang Company shall pay liquidated damages to the Company within tendays from the effective date of the judgment.Note 5: In 2021, the Company acquired 51% equity of Jianbang Company held by Guangzhou Bopi, and agreedto provide interest bearing borrowings to Jianbang Company based on the holding proportion. Later, five partiessigned an agreement, stipulating that the Company will provide borrowings to Jianbang Company, and the latterwill provide corresponding collateral. At the same time, Guangzhou Bopi, Evergrande Pearl River Delta andShenzhen Qijin shall bear joint and several guarantee responsibilities for 49% of the total borrowing amount aswell as interest and liquidated damages. After the agreement was signed, the Company provided borrowings toJianbang Company in accordance with the agreement and fulfilled its lending obligations. However, JianbangCompany was unable to repay the borrowings. As a state-owned listed company, the Company filed a lawsuit toprotect state-owned assets from losses.The case had been opened in March 2024, and the Company received thejudgement of the first instance on 7 June. On 24 June 2024, Guangzhou Boppi filed an appeal, and the caseentered into the procedure of the second instance.
(2) Contingent liabilities incurred by providing debt guarantees for other entities and the financial effectAs at 30 June 2024, the Company provided mortgage loan guarantees totalling RMB556,192,400 yuan to off-takers of commercial properties in accordance with its real estate business practices.
| Guaranteed parties | Financial institutions granting borrowings | Amount of borrowings guaranteed (in ten thousand yuan) | Maturity date of guarantees | Remarks |
| Homebuyer | China Construction Bank | 45.15 | Until the mortgage registration of the property certificate is completed and handed over to the bank for safekeeping | Shanglin Community |
| Homebuyer | China Construction Bank and Agricultural Bank of China | 834.67 | Until the mortgage registration of the property certificate is completed and handed over to the bank for safekeeping | Cuilin Community |
| Homebuyer | China Construction Bank, Industrial and Commercial Bank of China | 662.04 | Until the mortgage registration of the property certificate is completed and handed over to the bank for safekeeping | Chuanqi Donghu Garden |
| Homebuyer | China Construction Bank, Bank of Communications, Industrial and Commercial Bank of China, Bank of China, China Everbright Bank, Postal Savings Bank of China | 1,989.28 | Until the mortgage registration of the property certificate is completed and handed over to the bank for safekeeping | Tianyue Bay |
| Homebuyer | Industrial and Commercial Bank of China, Huaxia Bank, Agricultural Bank of China, Postal Savings Bank of China, China Merchants Bank, Bank of China | 51,357.25 | Until the mortgage registration of the property certificate is completed and handed over to the bank for safekeeping | Guangming Lane |
| Homebuyer | China Merchants Bank and Bank of China | 730.84 | Until the mortgage registration of the property certificate is completed and handed over to the bank for safekeeping | Linxin Community |
| Subtotal | 55,619.24 |
(3) It is necessary to explain if the group has no material contingencies to be disclosed.There were no material contingencies that the company needed to disclose.
3. Others
XVI.Events after the balance sheet date
1. Significant non-adjusting events
Presented in RMB
| Items | Contents | Effects on financial position and operating results | Reasons for effects being unable to be estimated |
2. Profit appropriations after the balance sheet date
3. Sale returns
4. Other events after the balance sheet date
XVII.Other significant events
1. Corrections of errors in prior periods
(1) Retrospective method
Presented in RMB
| Details of corrections of errors | Adjustment procedure | Financial item affected in the comparable period | Cumulative amount |
(2) Prospective method
| Details of correction of errors | Approval procedure | Reason for using prospective method |
2. Major debt restructuring
3. Replacement of assets
(1) Exchange of non-monetary assets
(2) Other asset replacement
4. Annuity plan
5. Termination of operation
Presented in RMB
| Item | Revenue | Costs | Profit before taxation | Income tax expenses | Net profit | Profit from discontinued operations attributable 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 segmentscannot be disclosed, explain the reason
(4) Other notes
7. Other significant transactions and matters that may affect investors' decision making
8. Others
XVIII. Notes for main items in the parent company's financial statements
1. Accounts Receivable
(1) Accounts receivables disclosed by aging
Presented in RMB
| Aging | As at 30 June 2024 | As at 1 January 2024 |
| Within 1 year (with 1 year inclusive) | 11,951,958.45 | 15,636,256.41 |
| Over 3 years | 4,450,138.62 | 4,450,138.62 |
| Over 5 years | 4,450,138.62 | 4,450,138.62 |
| Total | 16,402,097.07 | 20,086,395.03 |
(2) Accounts receivables disclosed by categories
Presented in RMB
| Categories | Closing balance | Opening balance | ||||||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
| Amount | Proportion | Amount | Provision proportion | Amount | Proportion | Amount | Provision proportion | |||
| Bad debt provisions made on an individual basis | 10,084,109.60 | 61.48% | 10,084,109.60 | 100.00% | 10,084,109.60 | 50.20% | 10,084,109.60 | 100.00% | ||
| Including: | ||||||||||
| Bad debt provisions made on a | 6,317,987.47 | 38.52% | 283,185.80 | 4.48% | 6,034,801.67 | 10,002,285.43 | 49.80% | 251,400.42 | 2.51% | 9,750,885.01 |
| combination basis | ||||||||||
| Including: | ||||||||||
| Total | 16,402,097.07 | 100.00% | 10,367,295.40 | 63.21% | 6,034,801.67 | 20,086,395.03 | 100.00% | 10,335,510.02 | 51.46% | 9,750,885.01 |
Bad debt provisions made on an important individual basis:
Presented in RMB
| Item | Opening balance | Closing balance | ||||
| Book balance | Bad debt provision | Book balance | Bad debt provision | Percentage of provision | Reason for accrual | |
| long-term accounts receivable from property sales | 10,084,109.60 | 10,084,109.60 | 10,084,109.60 | 10,084,109.60 | Expected to be noncollectable | |
| Total | 10,084,109.60 | 10,084,109.60 | 10,084,109.60 | 10,084,109.60 | ||
Bad debt provisions made on a combination basis:
Presented in RMB
| Item | Closing balance | ||
| Book balance | Bad debt provision | Percentage of provision | |
| Accounts receivable from others | 5,663,716.00 | 283,185.80 | 5.00% |
| Accounts receivable from related parties in consolidated scope | 654,271.47 | ||
| Total | 6,317,987.47 | 283,185.80 | |
Note to the basis for determining the combination:
Please refer to the way of disclosing other receivables’ bad debt provision to disclose relevant information, ifthe group choose to use general model of expected credit losses to accrue bad debts of accounts receivable.
□Applicable ? Inapplicable
(3) Additions, recoveries or reversals of provision for the current period
Provision for the current period:
Presented in RMB
| Types | Opening balance | Amount changes in current period | Closing balance | |||
| Provision | Recoveries or reversals | Written-off | Others | |||
| Bad debt provisions made on a combination basis | 251,400.42 | 31,785.38 | 283,185.80 | |||
| Total | 251,400.42 | 31,785.38 | 283,185.80 | |||
Including the significant write-offs of accounts receivable are as follows:
Presented in RMB
| Name of the entity | Recoveries or reversals amount | Reasons | Approaches to recoveries | The basis for determining the proportion of provision for bad debts and its reasonableness |
(4) Actual write-off of accounts receivable in the current
Presented in RMB
| Item | Amount of written-off |
Including the significant write-offs of accounts receivable are as follows::
Presented in RMB
| Name of the entity | Nature of accounts receivable | Written-off amount | Reason for written-off | Approval procedures performed | Accounts receivable arising from related party transactions(Y/N) |
Notes:
(5) The top five units with the ending balance of accounts receivable and collected by the debtor
Presented in RMB
| Name of the entity | The closing balance of accounts receivable | The closing balance of the contract asset | Closing balances of accounts receivable and contract assets | % of the total closing balance of accounts receivable and contract assets | Provision for bad debts of accounts receivable and provision for impairment of contract assets |
2. Other receivables
Presented in RMB
| Item | Closing balance | Opening balance |
| Dividends receivable | 29,222,722.88 | 29,222,722.88 |
| Other receivables | 1,675,543,018.17 | 1,693,941,657.82 |
| Total | 1,704,765,741.05 | 1,723,164,380.70 |
(1) Interest receivable
1) Classification of interest receivable
Presented in RMB
| Item | Closing balance | Opening balance |
2) Significant overdue interest
Presented in RMB
| Borrowing unit | Closing balance | Overdue time (month) | Overdue reason | Whether impairment occurs and the basis for |
judgment
Other notes:
3) Bad Debt Provisions
□Applicable ? Inapplicable
4) Additions, recoveries or reversals of provision for the current period
Presented in RMB
| Categories | Opening balance | Amount changes in current period | Closing balance | |||
| Provision | Recoveries or reversals | Written-off | Others | |||
Including significant accounts receivable written-off situation is as follows:
Presented in RMB
| Name of the entity | Recoveries or reversals amount | Reasons | Approaches to recoveries | The basis for determining the proportion of provision for bad debts and its reasonableness |
Other notes:
5) Dividends receivable actually written off in the current period
Presented in RMB
| Item | Amount of written-off |
Among them, the write-off of interest receivables is important
Presented in RMB
| Name of the entity | Nature of accounts receivable | Written-off amount | Reason | Approval procedures performed | Accounts receivable arising from related party transactions(Y/N) |
Other notes:
(2) Dividends receivable
1) Dividends receivable classification
Presented in RMB
| Items (or invested units) | Closing balance | Opening balance |
| Shenzhen City SPG Long Gang Development Ltd. | 29,222,722.88 | 29,222,722.88 |
| Total | 29,222,722.88 | 29,222,722.88 |
2) Significant dividends receivable overdue more than one year are as follows:
Presented in RMB
| Items (or invested units) | Closing balance | Aging | Reasons for not recovered | Whether impairment occurs |
| and the basis for judgment | ||||
| Shenzhen City SPG Long Gang Development Ltd. | 29,222,722.88 | 1-2year | Defer | None |
| Total | 29,222,722.88 |
3) Bad Debt Provisions
□Applicable ? Inapplicable
4) Additions, recoveries or reversals of provision for the current period
Presented in RMB
| Categories | Opening balance | Amount changes in current period | Closing balance | |||
| Provision | Recoveries or reversals | Written-off | Others | |||
Including significant accounts receivable written-off situation is as follows:
Presented in RMB
| Name of the entity | Recoveries or reversals amount | Reasons | Approaches to recoveries | The basis for determining the proportion of provision for bad debts and its reasonableness |
Other notes:
5) Dividends receivable actually written off in the current period
Presented in RMB
| Item | Amount of written-off |
Including significant write-off of important dividends receivable is as follows:
Presented in RMB
| Name of the entity | Nature of accounts receivable | Written-off amount | Reason | Approval procedures performed | Whether the amount arose from a connected transaction |
Other notes:
(3) Other receivables
1) Other receivables disclosure by nature
Presented in RMB
| Item | Closing balance | Opening balance |
| Portfolio grouped with balances due from related parties | 2,409,623,024.03 | 2,371,906,725.11 |
| Portfolio grouped with government funds receivable | 165,460.00 | 165,460.00 |
| Portfolio grouped with employee | 45,940.00 | 62,454.80 |
| petty cash receivable | ||
| Portfolio grouped with advances received and paid on behalf of others | 0.00 | 67,200.00 |
| Portfolio grouped with other inter-company balances receivable | 116,030,788.57 | 142,185,626.87 |
| Total | 2,525,865,212.60 | 2,514,387,466.78 |
2) Age analysis
Presented in RMB
| Ages | Closing balance | Opening balance |
| Within 1 year | 103,651,481.52 | 92,173,735.70 |
| 1-2 years | 333,456,337.77 | 333,456,337.77 |
| 2-3 years | 456,845,625.71 | 456,845,625.71 |
| Over 3 years | 1,631,911,767.60 | 1,631,911,767.60 |
| 3-4 years | 104,875,297.41 | 104,875,297.41 |
| 4-5 years | 70,181,566.47 | 70,181,566.47 |
| Over 5 years | 1,456,854,903.72 | 1,456,854,903.72 |
| Total | 2,525,865,212.60 | 2,514,387,466.78 |
3) Provision for bad debts
Presented in RMB
| Categories | Closing balance | Opening balance | ||||||||
| Book balance | Provision for bad debts | Book value | Book balance | Provision for bad debts | Book value | |||||
| Amount | % to total | Amount | Provision proportion (%) | Amount | % to total | Amount | Provision proportion (%) | |||
| Receivables with provision made on an individual basis | 820,414,389.79 | 32.48% | 820,414,389.79 | 100.00% | 820,414,389.79 | 32.63% | 820,414,389.79 | 100.00% | ||
| including: | ||||||||||
| Receivables with provision made on a | 1,705,450,822.81 | 67.52% | 685,081.76 | 0.04% | 1,704,765,741.05 | 1,693,973,076.99 | 67.37% | 31,419.17 | 0.00% | 1,693,941,657.82 |
| collective basis | ||||||||||
| including: | ||||||||||
| Total | 2,525,865,212.60 | 100.00% | 821,099,471.55 | 32.51% | 1,704,765,741.05 | 2,514,387,466.78 | 100.00% | 820,445,808.96 | 32.63% | 1,693,941,657.82 |
Changes in provision for bad debts:
Presented in RMB
| Items | Stage 1 | Stage 2 | Stage 3 | Total |
| 12?month expected credit losses | Lifetime expected credit losses (credit not impaired) | Lifetime expected credit losses (credit impaired) | ||
| Opening balance | 820,445,808.96 | 820,445,808.96 | ||
| Opening balance in the current period | ||||
| Other changes | 653,662.59 | 653,662.59 | ||
| Closing balance | 821,099,471.55 | 821,099,471.55 |
The basis for the division of each stage and the proportion of bad debt provisionChanges in the book balance with significant changes in the loss provision for the current period:
□Applicable ? Inapplicable
4) Additions, recoveries or reversals of provision for the current period
Provision for bad debts in the current period:
Presented in RMB
| Categories | Opening balance | Amount changes in current period | Closing balance | |||
| Provision | Recoveries or reversals | Written-off | Others | |||
Including significant accounts receivable written-off situation is as follows:
Presented in RMB
| Name of the entity | Recoveries or reversals amount | Reasons | Approaches to recoveries | The basis for determining the proportion of provision for bad debts and its reasonableness |
5) 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
| Name of the entity | Nature of other receivable | Amount of written-off | Reason | Verification and cancellation procedures to be performed | Whether the payment is generated by an affiliate transaction |
Other notes:
6) The top five units of ending balance of other receivables
Presented in RMB
| Name of the entity | Nature of other receivables | Closing balance | Aging | Proportion of total ending balance of other receivables (%) | Ending balance of bad debt provision |
| Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd. | Receivable from Subsidiary | 816,856,739.12 | Within 1 year.1-2 years.2-3year | 32.34% | |
| Shantou Huafeng Estate Development Co., Ltd | Receivable from Subsidiary | 745,718,384.72 | Within 1 year, over five years | 29.52% | |
| Fresh Peak Enterprise Ltd. | Receivable from Subsidiary | 535,782,669.79 | Over five years | 21.21% | 535,782,669.79 |
| American Great Wall Co., Ltd | Receivable from Subsidiary | 104,981,769.07 | Over five years | 4.16% | 104,981,769.07 |
| Wellam Co., Ltd. | Receivable from Subsidiary | 90,686,884.30 | 3-4 years | 3.59% | |
| Total | 2,294,026,447.00 | 90.82% | 640,764,438.86 |
7) Other receivables terminated due to the transfer of financial assets
Presented in RMBOther notes:
3. Long-term equity investments
Presented in RMB
| Item | Closing balance | Opening balance | ||||
| Book balance | Impairment reserve | Book value | Book balance | Impairment reserve | Book value | |
| Investment in subsidiaries | 1,715,520,833.00 | 392,155,084.61 | 1,323,365,748.39 | 1,715,520,833.00 | 392,155,084.61 | 1,323,365,748.39 |
| Investment in associates and joint ventures | 11,977,845.58 | 11,977,845.58 | 11,977,845.58 | 11,977,845.58 | ||
| Total | 1,727,498,678.58 | 404,132,930.19 | 1,323,365,748.39 | 1,727,498,678.58 | 404,132,930.19 | 1,323,365,748.39 |
(1) Investment in subsidiaries
Presented in RMB
| Name of investee | Opening balance (Book value) | Opening balance of the provision for impairmen | Increase/Decrease | Closing balance (Book value) | Ending balance of the provision for impairmen | |||
| Additional investment | Decrease of investment | Provision for impairment | Other | |||||
| Shenzhen Petrel Hotel Co. Ltd. | 20,605,047.50 | 20,605,047.50 | ||||||
| Shenzhen City Shenfang Investment Ltd. | 9,000,000.00 | 9,000,000.00 | ||||||
| Fresh Peak Enterprise Ltd. | 556,500.00 | 556,500.00 | ||||||
| Fresh Peak Zhiye Co., Ltd. | 22,717,697.73 | 22,717,697.73 | ||||||
| Shenzhen Zhen Tung Engineering Ltd | 11,332,321.45 | 11,332,321.45 | ||||||
| American Great Wall Co., Ltd | 1,435,802.00 | 1,435,802.00 | ||||||
| Shenzhen City Shenfang Free Trade Trading Ltd. | 4,750,000.00 | 4,750,000.00 | ||||||
| Beijing Shenfang Property Management Co., Ltd. | 6,000,000.00 | 6,000,000.00 | ||||||
| Shenzhen Lain Hua Industry and Trading Co., Ltd. | 13,458,217.05 | 13,458,217.05 | ||||||
| Shenzhen City SPG | 30,850,000.00 | 30,850,000.00 | ||||||
| Long Gang Development Ltd. | ||||||||
| Development Management Limited Company | 64,183,888.90 | 64,183,888.90 | ||||||
| Shantou City Huafeng Real Estate Development Co., Ltd | 16,467,021.02 | 16,467,021.02 | ||||||
| Paklid Limited | 201,100.00 | 201,100.00 | ||||||
| Bekaton Property Limited | 906,630.00 | 906,630.00 | ||||||
| Shenzhen Shenfang Department Store Co. Ltd. | 9,500,000.00 | 9,500,000.00 | ||||||
| Shantou Fresh Peak Building | 58,547,652.25 | 58,547,652.25 | ||||||
| Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd. | 191,184,186.54 | 258,815,813.46 | 191,184,186.54 | 258,815,813.46 | ||||
| Shenzhen Shenfang Chuanqi Real Estate Development Co., Ltd. | 995,000,000.00 | 995,000,000.00 | ||||||
| Wellam Co., Ltd. | 8,955.10 | 8,955.10 | ||||||
| Total | 1,323,365,748.39 | 392,155,084.61 | 1,323,365,748.39 | 392,155,084.61 |
(2) Investment in associates and joint ventures
Presented in RMB
| Investees | Opening balance(Book value) | Opening balance of the provision for impairment | Increase/Decrease | Closing balance(Book value) | Ending balance of the provision for impairment | |||||||
| Additional investment | Decrease of investment | Income from Equity investment recognized under equity method | Other comprehensive Income adjustment | Other equity movement | Announced for distributing cash dividend or profit | Provision for impairment | Others | |||||
| 1.Joint Venture | ||||||||||||
| Fengkai Xinghua Hotel | 9,455,465.38 | 9,455,465.38 | ||||||||||
| Subtotal | 9,455,465.38 | 9,455,465.38 | ||||||||||
| II. Associates | ||||||||||||
| Shenzhen Ronghua Jidian Co., Ltd | 1,076,954.64 | 1,076,954.64 | ||||||||||
| Shenzhen Runhua Automobile Trading Co., Ltd | 1,445,425.56 | 1,445,425.56 | ||||||||||
| Subtotal | 2,522,380.20 | 2,522,380.20 | ||||||||||
| Total | 11,977,845.58 | 11,977,845.58 | ||||||||||
The recoverable amount is determined on the basis of fair value less disposal costs
□Applicable ? Inapplicable
The recoverable amount is determined by the present value of the projected future cash flows
□Applicable ? Inapplicable
The reason for the obvious discrepancy between the foregoing information and the information used in theimpairment test of previous years or external informationThe reason for the obvious discrepancy between the information used in the company's impairment test inprevious years and the actual situation in the current year
(3) Other notes
4. Operating revenue/Operating cost
Presented in RMB
| Items | Current amount | Amount of previous period | ||
| Income | Costs | Income | Costs | |
| Main operations | 32,476,399.59 | 14,063,038.19 | 45,457,639.46 | 14,351,721.51 |
| Other operations | 857.13 | 354,014.90 | ||
| Total | 32,477,256.72 | 14,063,038.19 | 45,811,654.36 | 14,351,721.51 |
Revenue related information:
Information related to performance obligations:
Other notesThe Company's real estate sales business is a performance obligation to be performed at a certain point in time.The realization of sales revenue shall be recognized when the development product has been completed andaccepted, the sales contract has been signed and the obligations stipulated in the contract have been fulfilled, thenotice or announcement of occupancy has been issued to the owner, the property has been actually delivered tothe owner or the delivery date agreed in the contract has expired, the full amount of the house has beencollected, and the relevant costs that have been incurred or will be incurred can be reliably measured.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 thathave been signed but not yet performed or not yet completed is RMB 95,177,083.51 yuan, Among them, RMB26,633,213.14 yuan is expected to be recognized as revenue in 2024, RMB 42,746,387.28 is expected to berecognized as revenue in the year 2025, and RMB 25,797,483.09 yuan is expected to be recognized as revenuein the year 2026.Significant contract changes or major transaction price adjustments
Presented in RMB
| Items | Accounting treatments | The impact on revenue |
Other notes:
5. Investment income
Presented in RMB
| Items | Current period cumulative | Preceding period comparative |
| Gains on residual equity remeasured at fair value after losing control power | 161,491.79 | |
| Dividend income from other equity instrument investments | 777,600.00 | |
| Other | 1,644,822.69 | |
| Total | 777,600.00 | 1,806,314.48 |
6. Other
XIX. Supplementary Information
1. Statement of non-recurring gains and losses for the current period
?Applicable □ Inapplicable
Presented in RMB
| Item | Amount | Note |
| Gain or loss on disposal of non-current assets | 223,872.34 | |
| 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 policies and regulations, and will continuously enjoyed with a fixed or quantitative manner according to certain standards) | 83,011.12 | |
| Gain or loss on assets entrusted to other entities for investment or management | 9,721,583.19 | Changes in fair value and investment income arising from investment in monetary funds |
| Non-operating income/(expenses) except the above | 1,158,344.96 | |
| Less: Amount affected by the income tax | 366,307.11 | |
| Non-controlling interest affected (after tax) | 585.56 | |
| Total | 10,819,918.94 | -- |
Details of other profit and loss items that meet the definition of non-recurring gain and loss:
□Applicable ? Inapplicable
Details of the company does not have other profit and loss items that meet the definition of non-recurring profitand lossDescription of defining the non-recurring profit and loss items listed in 'Explanatory Announcement No. 1 oninformation disclosure of companies offering securities to the public - non recurring profits and losses’ asrecurring profit and loss items.
□Applicable ? Inapplicable
2. ROE and EPS
| Profit in reporting period | Weighted average ROE (%) | EPS (yuan/share) | |
| Basic EPS | Diluted EPS | ||
| Net income attributable to the common | 0.11% | 0.0056 | 0.0056 |
| shareholders of the Group | |||
| Net profit attributable to common shareholders of a company after deducting non-recurring gains and losses | -0.14% | -0.0051 | -0.0051 |
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 withInternational Accounting Standards and Chinese Accounting Standards
□Applicable ? Inapplicable
(2) The difference between net profit and net assets in the financial report disclosed in accordance withInternational accounting standards for overseas enterprises and Chinese accounting standards forenterprises
□Applicable ? Inapplicable
(3) Note to the discrepancy in accounting data under the accounting standards outside Mainland China.In case the discrepancy in data which have been audited by an overseas auditing agent has been adjusted,please specify the name of the overseas auditing agent.
4. Others