ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE
& PROPERTIES (GROUP) CO., LTD.
INTERIM REPORT 2022
2022-030
August 2022
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
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.Liu Zhengyu, chairman of the Company’s Board, Wang Jianfei, the Company’s ChiefFinancial Officer, and Qiao Yanjun, 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 arereminded to exercise caution when making investment decisions.The Company has no interim dividend plan, either in the form of cash or stock.This Report and its summary have been prepared in both Chinese and English. Should therebe any discrepancies or misunderstandings between the two versions, the Chinese versionsshall prevail.
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Interim Report 2022
Table of Contents
Part I Important Notes, Table of Contents and Definitions ...... 2
Part II Corporate Information and Key Financial Information ...... 6
Part III Management Discussion and Analysis ...... 9
Part IV Corporate Governance ...... 25
Part V Environmental and Social Responsibility ...... 26
Part VI Significant Events ...... 27
Part VII Share Changes and Shareholder Information ...... 33
Part VIII Preferred Shares ...... 37
Part IX Bonds ...... 38
Part X Financial Statements ...... 39
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 Information
I 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 | Liu Zhengyu |
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@163.net | spg@163.net |
III Other Information
1. Contact Information of the Company
Indicate by tick mark whether any change occurred to the registered address, office address and their zip codes, website addressand email address of the Company in the Reporting Period.
□ Applicable ? Not applicable
No change occurred to the said information in the Reporting Period, which can be found in the 2021 Annual Report.
2. Media for Information Disclosure and Place where this Report is Kept
Indicate by tick mark whether any change occurred to the information disclosure media and the place for keeping the Company’speriodic reports in the Reporting Period.
□ Applicable ? Not applicable
The newspapers designated by the Company for information disclosure, the website designated by the CSRC for disclosing theCompany’s periodic reports and the place for keeping such reports did not change in the Reporting Period. The said informationcan be found in the 2021 Annual Report.
3. Other Information
Indicate by tick mark whether any change occurred to other information in the Reporting Period.
□ Applicable ? Not applicable
IV Key Financial InformationIndicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes ? No
H1 2022 | H1 2021 | Change (%) | |
Operating revenue (RMB) | 366,184,498.90 | 694,598,218.47 | -47.28% |
Net profit attributable to the listed company’s shareholders (RMB) | 145,128,330.14 | 132,447,122.14 | 9.57% |
Net profit attributable to the listed company’s shareholders before exceptional gains and losses (RMB) | 17,139,162.56 | 131,437,988.58 | -86.96% |
Net cash generated from/used in operating activities (RMB) | -548,115,143.34 | -285,540,751.46 | -91.96% |
Basic earnings per share (RMB/share) | 0.1435 | 0.1309 | 9.63% |
Diluted earnings per share (RMB/share) | 0.1435 | 0.1309 | 9.63% |
Weighted average return on equity (%) | 3.66% | 3.47% | 0.19% |
30 June 2022 | 31 December 2021 | Change (%) | |
Total assets (RMB) | 5,753,479,367.61 | 6,182,498,050.43 | -6.94% |
Equity attributable to the listed company’s shareholders (RMB) | 3,996,719,159.82 | 3,938,260,291.97 | 1.48% |
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
Unit: RMB
Net profit attributable to the listed company’s shareholders | Equity attributable to the listed company’s shareholders | |||
H1 2022 | H1 2021 | Ending amount | Beginning amount | |
Under CAS | 145,128,330.14 | 132,447,122.14 | 3,996,719,159.82 | 3,938,260,291.97 |
Adjusted as per IFRS | ||||
Under IFRS | 145,128,330.14 | 132,447,122.14 | 3,996,719,159.82 | 3,938,260,291.97 |
2. Net Profit and Equity Differences under CAS and Foreign Accounting Standards
□ Applicable ? Not applicable
No such differences for the Reporting Period.
3. Reasons for Accounting Data Differences Above
□ Applicable ? Not applicable
XI Exceptional Gains and Losses? Applicable □ Not applicable
Unit: RMB
Item | Amount | Note |
Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) | 163,352,077.77 | Income from disposal of interest in subsidiary |
Government subsidies charged to current profit or loss (exclusive of government subsidies consistently given in the Company’s ordinary course of business at fixed quotas or amounts as per government policies or standards) | 400,232.43 | Government grants received |
Gain or loss on debt restructuring | 2,489,520.46 | Debt restructuring income |
Gain or loss on fair-value changes on held-for-trading financial assets and liabilities & income from disposal of held-for-trading financial assets and liabilities and available-for-sale financial assets (exclusive of the effective portion of hedges that arise in the Company’s ordinary course of business) | 5,123,349.63 | Change in fair value of monetary fund investments and return on investment |
Non-operating income and expense other than the above | 506,908.18 | |
Less: Income tax effects | 42,968,022.12 | |
Non-controlling interests effects (net of tax) | 914,898.77 | |
Total | 127,989,167.58 |
Details of other gains and losses that meet the definition of exceptional gain/loss:
□ Applicable ? Not applicable
No such cases for the Reporting Period.Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the Explanatory 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 2022, the international environment tended to be more complex and severe. The spread ofCovid-19 was frequent and sporadic in China. Various sudden unexpected factors caused a decline in bothsupply and demand, leading to a slowdown in economic growth. Under the effective implementation of apackage of policy measures to stabilize the economy, China's economy withstood the pressure and achievedpositive growth in the second quarter. In terms of the industry, under the premise of insisting on the positionthat houses are for living in, not for speculating on, localities implemented differentiated housing policies basedon city-specific policies, but market expectations failed to make a directional change. Customers with a rigiddemand were still in a strong wait-and-see mood. No significant recovery was seen in the activity of real estatetransactions.(II) Review of the Company’s operations in the Reporting Period
1. Focusing on the leadership of Party building, the Company newly strengthened the Party buildingThe Party Committee of the Company insisted on arming mind, guiding practice and promoting work with XiJinping Thought on Socialism with Chinese Characteristics for a New Era. The Party Committee enriched andexpanded the forms and carriers of learning and education, and orderly promoted the normalization andinstitutionalization of the "First Topics" learning of the Party organizations and the study of the theoreticalstudy center group. Also, it further established the "Four Consciousnesses", enhanced the "Four-sphereconfidence", and ensured the "Two Upholds". During the Reporting Period, the Company held 11 (enlarged)meetings of the Party Committee. All levels of Party organizations in the system carried out four (enlarged)meetings of theoretical study of the theoretical study center group, 126 sessions of "Three Sessions and OneClass", and 126 sessions of "First Topics" learning.The implementation of the responsibilities for Party building was strengthened. The Party building brandcreation activity of "One Brand for One Enterprise" was continuously promoted. A debriefing review meetingon the Party building of the grass-roots Party organization secretary was held, and a letter of responsibility forParty building goals was signed with the grass-roots Party organizations. The centralized election of seven Partybranches affiliated to the system was completed to allocate leadership team members of the Party branches andoptimize the construction of the grass-roots Party organizations. The regular development of the practicalactivity of "I do practical things for the masses" was promoted, and the annual plan for people's livelihood wasformulated and implemented.The constraint of strict governance of the Party was enhanced. A list of key tasks for development of cleanand honest Party conduct and anti-corruption work of SPG in 2022 was formulated to ensure the joint
arrangement, implementation, inspection and assessment. The key points of supervision in 2022 were preparedto decompose tasks layer by layer. The responsibilities of the person responsible for the secondary-level Partyorganization as the "first responsible person" for development of clean and honest Party conduct were defined.Other members were promoted to fully perform "one position and two responsibilities". Honesty learning andeducation was carried out from multiple perspectives and levels to further consolidate the ideological line ofdefense for honesty and self-discipline.
2. Focusing on development projects, the Company achieved new progress in the core businessProject construction. First, the construction of SPG Guangmingli project was promoted in an orderly manner.As at the end of June, 196 supporting piles were completed for the project, accounting for approximately 45%of the total number of supporting piles. Earthworks were transported by 27,400 cubic meters, accounting forapproximately 15% of the total volume of earthworks. Second, Linxinyuan project: The framework of buildings1, 2, 5 and 8 has been completed by nearly 70%. Buildings 3, 4, 6, and 7 have been completed by 50%. As atthe end of July, the structural capping has been completed for Linxinyuan Phase I.Real estate sales. The Company strengthened project promotion and customer development through multiplechannels, and accelerated the pace of destocking. In the first half of the year, a total of 176 units were sold ininitial subscription, and the sales area increased by 12,000 square meters.
3. Focusing on improving quality and efficiency, the Company enhanced new impetus for corporatedevelopmentIn the Reporting Period, the Company completed the change of business registration of equity transfer ofShenzhen Property Management, and basically completed the transfer of assets, business and personnel. Itcompleted the transfer of Yunnan Kunpeng Air Service Co., Ltd. and collected equity transfer funds. In terms ofthe cleanup of zombie companies, the Company completed the cancellation of Shenzhen Special EconomicZone Real Estate (Group) Guangzhou Property and Estate Co., Ltd. and the revocation of registration of HongKong Qiyi Co., Ltd. QiLu Co., Ltd. successfully completed the first gazette of the revocation of registration. Forthe liquidation of Guangdong Fengkai County Lianfeng Cement Manufacturing Co., Ltd., in-depthcommunication has been carried out with relevant parties on the signing of the liquidation resolution. GreatWall Estate Co., Inc. (U.S.) has completed the selection and engagement of legal services and land salesintermediaries and initiated the land listing for sale. Petrel Hotel completed a series of tasks such as signing thelease contract with Topchain Link, handing over the venue, and entering the venue for decoration, andsuccessfully realized the tourism transformation.
4. Focusing on emerging industries, the Company made new explorations for future developmentGuided by the action plan for improving the quality of listed companies, the Company relied on the platforms inthe SASAC system to build a collaborative working mechanism with multi-subject participation. The Companymade studies and demonstrations of new industry markets, and actively expanded new profit growth points. It
intended to cooperate with the capital platforms in the SIHC system to actively explore industrial fundcooperation plans and leverage social capital to gradually set foot in strategic emerging industries.
5. Focusing on safe production, the Company newly consolidated the safety barrierFirst, the work requirements of "co-responsibility of the Party and government, one position and tworesponsibilities, and accountability for negligence of duty" were implemented. The Company continued toinspect and rectify potential safety production hazards, revised the documents for the safety productionmanagement system, and improved the emergency mechanism. It solidly carried out safety productioninspection, "safety production month", emergency drills and other safety production activities tocomprehensively consolidate the safety foundation. Second, while performing the tasks for the regular epidemicprevention and control, the Company actively responded to the call of the superiors by assigning 23 employeesto come to the frontline of the epidemic prevention and control, and donating RMB54,000 worth of anti-epidemic materials to Nanhu Street in Shenzhen. The government's rent reduction and exemption policy wasstrictly implemented. The Company reduced and exempted rent of more than RMB20 million, contributing the"SPG strength" to the epidemic prevention and control and the resumption of work and production in Shenzhen.
6. Focusing on guarantee services, the Company newly maintained the corporate stabilityThe Company renewed the liability insurance for directors, supervisors and senior managers in 2022 to providenecessary guarantee for the performance of duties by directors, supervisors and senior managers of theCompany. It purchased critical illness insurance and group accident supplementary medical insurance foremployees to enhance employees' ability to resist risks. According to the needs of business development, 11urgently needed positions were recruited. The Company actively carried out project financing, completed thedevelopment loan of RMB500 million for Chuanqi Real Estate Development, and effectively guaranteed theproject development and operation. It successfully launched the new OA system, which effectively improvedthe office efficiency of employees. It also properly responded to all kinds of complaint petitions as well asevents affecting social stability, which created a good atmosphere for the stable corporate operation.
7. Focusing on internal control and internal audit, the Company newly strengthened the operationsmanagementAccording to the annual letter of responsibility for operations management and work points, the Companycarried out unified arrangement and implementation supervision of the completion of business indicators andkey tasks, and meeting arrangements every month. The supervision of internal audit was intensified. TheCompany carried out audit of assessment of total remuneration of affiliated companies, special audit ofcooperation projects and contract review, with the contract review rate reaching 100%. 20 procurement tenderswere completed in a standardized manner. The pre-settlement reduction rate of major projects was 11%.Jianbang Group streamlined the project management system, which effectively improved the managementefficiency.
The Company is subject to the information disclosure requirements for the real estate industry in the Disciplinary and Regulatory
Guideline No. 3 of the Shenzhen Stock Exchange for Listed Companies—Industry-specific Information Disclosure.
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 | 85% | 85.00% | 64,278 | 159,761 | 115,750 | 101,891 | ||
Shenzhen | SPG Guangmingli | Guangming District | Foundation pit being built | 100.00% | 19 January 2022 | 4% | 4.00% | 10,721 | 53,605 | 151,758 | 100,422 |
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 Current Period (RMB’0,000) | Cumulatively settled floor area (㎡) | Floor area settled in the Current Period(㎡) | Pre-sale/sales revenue settled in the Current Period (RMB’0,000) |
Shenzhen | Chuanqi Donghu | Luohu District | Ready for sale | 100.00% | 55,727 | 32,857 | 32,511 | 71 | 506 | 32,303 | 2,291 | 14,636 |
Mingyuan | ||||||||||||
Shenzhen | Cuilinyuan | Longgang District | Ready for sale | 100.00% | 60,111 | 56,137 | 52,683 | 714 | 1,940 | 51,969 | ||
Shantou | Tianyuewan Phase I | Chaoyang District | Ready for sale | 100.00% | 153,470 | 160,372 | 117,343 | 2,881 | 1,603 | 99,974 | 7,450 | 3,822 |
Shantou | Tianyuewan Phase II | Chaoyang District | Ready for sale | 100.00% | 127,770 | 137,059 | 23,935 | 6,931 | 3,914 | 19,756 | 8,239 | 4,297 |
Huizhou | Linxinyuan Phase I | Huiyang District | On pre-sale | 51.00% | 159,761 | 159,761 | 1,904 | 1,060 | 1,185 |
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 Block of Guoshang Mansion | Shenzhen | Commercial | 100.00% | 4,819.71 | 4752.98 | 98.62% |
Petrel Building | Shenzhen | Commercial | 100.00% | 22,475.47 | 22,475.47 | 100.00% |
SPG Plaza | Shenzhen | Office building | 100.00% | 61015.82 | 34505.47 | 56.55% |
SPG Plaza Podium | Shenzhen | Commercial | 100.00% | 19886.3 | 16123.49 | 81.08% |
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 | Financing cost range/average financing cost | Maturity structure | |||
Within 1 year | 1-2 years | 2-3 years | Over 3 years |
Development strategy and operating plan for the coming year:
The year 2022 sees the convening of the 20th National Congress of the Communist Party of China. It is also acrucial year for the Company to deepen its reform. The Company will resolutely implement the decisions anddeployment of the CPC Shenzhen Municipal Committee, the Shenzhen Municipal People’s Government, theMunicipal SASAC, and SIHC. The “Dual Zone” construction in Shenzhen and the policy of deepening thereform of state-owned assets and enterprises have brought strategic opportunities for the Company to plan forprojects reserves and stabilize operation and management. Correspondingly, the Company will strive to seeknew breakthroughs in its reform and development.(I) Focus on improving the quality of Party buildingIn the second half of the year, guided by Xi Jinping Thought on Socialism with Chinese Characteristics for aNew Era, the Party Committee of the Company will continue to organize the study, publicity andimplementation of the spirit of the 20th National Congress of the Communist Party of China and the spirit of the13th Guangdong Provincial Congress of the Communist Party of China, focus on the "First Topics" learning andthe study of the theoretical study center group, and strengthen the building of the corporate leadership team.Based on the corporate reality, it will deepen the Party building innovation activity of "One Brand for One
Enterprise", continue to promote the standardization construction of grass-roots Party organizations and theteam building of Party members, and strive to push the Party building to a new level.(II) Focus on promoting the prudent operation of development as the core businessFirst, project construction will be focused: The Company will ensure that the development of Guangmingliproject and Linxinyuan project are implemented as planned. Second, project marketing will be focused: TheCompany will make breakthrough innovation in the marketing model and strengthen sales promotion, strivingto complete the annual sales task.(III) Focus on promoting future development and improving quality and efficiencyFirst, future development: The Company will strengthen the communication and coordination with the capitalplatforms in the system, focus on promoting the research and implementation of the industrial investment fundplan, and continue to explore the future direction and path for corporate development. Second, improvement ofquality and efficiency: The Company will continue to promote the land sale of Great Wall Estate Co., Inc.(U.S.), the revocation of registration of QiLu Co., Ltd., the liquidation of Guangdong Fengkai County LianfengCement Manufacturing Co., Ltd., and the cleanup of zombie companies such as Fresh Peak Investment Ltd. andBarenie Co. Ltd. It will implement follow-up tasks such as the audit of the profit of Shenzhen PropertyManagement during the transition period and the collection of the final payment of equity transfer. Closeattention will be paid to the special check of receivables to earnestly safeguard the interests of the Company.(IV) Focus on promote security protection in a standardized and orderly mannerFirst, the Company will define the entity responsibility for safety production, carry out closed-loop rectificationof problems and potential hazards found in the third-party safety inspection organized by the superiors, andprepare for the third-party inspection. It will carry out in-depth inspection and rectification of potential safetyproduction hazards and review of problems, and focus on the safety of engineering construction and self-builthouse structure to eliminate potential safety hazards. Second, by adhering to the regular epidemic preventionand control, the Company will refine measures and strengthen implementation to ensure that the situation ofepidemic prevention and control is stable. Third, the Company will coordinately focus on stability maintenanceof petitioning and public opinion monitoring of the Group to create a harmonious and stable environment forcorporate development.
Provision of guarantees for homebuyers on bank mortgages:
? Applicable □ Not applicable
Project | Guarantee period | Guarantee amount (RMB’0,000) | Note |
Cuilinyuan | Until the property ownership certificate is registered as collateral and handed over to bank for keeping | 2,697.86 | |
Chuanqi Donghu Mingyuan | Until the property ownership certificate is registered as collateral and handed over to bank for keeping | 2,228.92 | |
Tianyuewan | Until the property ownership certificate is registered as collateral and handed over to bank for keeping | 30,898.12 | |
Linxinyuan | Until the property ownership certificate is registered as collateral and handed over to bank for keeping | 377.00 | |
Total | 36,201.90 |
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 | 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 a pioneer of real estate development enterprises in Shenzhen, the Company has created a number of "firstplaces" in the history of real estate development in China. For example, the first to use the paid state-owned land,the first to introduce the foreign investment for the cooperative land development, the first to raise developmentfunds by means of pre-sale of buildings, the first to carry out public bidding for construction projects inaccordance with international practices, the first to set up a property management company to the buildings andresidences developed in an all-rounded manner, the first to win the bid in the auction of land use rights held in theShenzhen Special Economic Zone, etc.Over the past 40 years, the company has developed more than 100 high-rise buildings, 500 multi-storey residentialbuildings, and 400 garden villas, with a cumulative building area of more than 4 million square meters. It has paidgreat efforts to the establishment of a modern enterprise HR management system and works hard in building aprofessional and high-quality development team. It also keeps improving the management mechanism andprocesses for project development. As a result, its planning, construction, cost control, sales ability and brandimage have been effectively improved. More importantly, its main business operation ability and corecompetitiveness have been greatly enhanced.In 2022, the Company was granted the titles of “Socially Responsible Company” and “Honest Company” inthe real estate world of Shenzhen.III 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 2022 | H1 2021 | Change (%) | Main reason for change | |
Operating revenue | 366,184,498.90 | 694,598,218.47 | -47.28% | Decreased revenue from property sales and offering of rent reductions and exemptions during the COVID-19 pandemic |
according to the relevant policies | ||||
Cost of sales | 239,885,272.72 | 331,975,678.55 | -27.74% | |
Selling expense | 10,726,031.33 | 16,815,600.06 | -36.21% | Decline in property sales |
Administrative expense | 33,013,300.52 | 40,299,584.22 | -18.08% | |
Finance costs | -3,601,554.32 | -16,414,487.59 | 78.06% | Decreased bank balances and interest income from bank deposits |
Income tax expense | 59,036,968.69 | 47,841,099.11 | 23.40% | |
Net cash generated from/used in operating activities | -548,115,143.34 | -285,540,751.46 | -91.96% | Payment of land value-added tax for the Chuanqi Donghu Mingyuan project |
Net cash generated from/used in investing activities | 255,526,904.00 | -1,750,516,694.28 | -114.60% | Substantial payment for equity acquisition and purchase of monetary fund in the same period of last year |
Net cash generated from/used in financing activities | 243,164,282.22 | -100.00% | Receipt of borrowing from non-controlling shareholder by project company in the same period of last year | |
Net increase in cash and cash equivalents | -292,337,340.43 | -1,792,911,046.07 | -83.69% | Substantial payment for equity acquisition and purchase of monetary fund in the same period of last year |
Major changes in the profit structure or sources of the Company in the Reporting Period:
Net profit largely came from recurrent business operations in the same period of last year, while in the current period, exceptionalgains such as income from the disposal of subsidiary were the primary sources of net profit.Breakdown of operating revenue:
Unit: RMB
H1 2022 | H1 2021 | Change (%) | |||
Operating revenue | As % of total operating revenue (%) | Operating revenue | As % of total operating revenue (%) | ||
Total | 366,184,498.90 | 100% | 694,598,218.47 | 100% | -47.28% |
By business segment | |||||
Real estate | 228,409,271.55 | 62.38% | 479,956,940.17 | 69.10% | -52.41% |
Construction service | 103,248,547.59 | 28.20% | 107,167,710.21 | 15.43% | -3.66% |
Rental service | 16,729,533.24 | 4.57% | 30,225,726.14 | 4.35% | -44.65% |
Property management service | 11,075,828.00 | 3.02% | 70,348,672.05 | 10.13% | -84.26% |
Other | 6,721,318.52 | 1.84% | 6,899,169.90 | 0.99% | -2.58% |
By product | |||||
Housing units | 223,833,107.28 | 61.13% | 479,562,902.07 | 69.04% | -53.33% |
Shops and parking place | 4,576,164.27 | 1.25% | 394,038.10 | 0.06% | 1,061.35% |
Other | 137,775,227.35 | 37.62% | 214,641,278.30 | 30.90% | -35.81% |
By geographic segment | |||||
Guangdong Province | 318,380,165.32 | 86.95% | 635,008,108.14 | 91.42% | -49.86% |
Other regions in | 47,804,333.58 | 13.05% | 59,300,114.59 | 8.54% | -19.39% |
China | |||||
Overseas | 0.00 | 0.00% | 289,995.74 | 0.04% | -100.00% |
Operating division, product category or operating segment contributing over 10% of operating revenue or operating profit:
? Applicable □ Not applicable
Unit: RMB
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 business segment | ||||||
Real estate | 228,409,271.55 | 104,297,609.19 | 54.34% | -52.41% | -24.24% | -16.98% |
Construction service | 103,248,547.59 | 101,006,700.90 | 2.17% | -3.66% | -3.39% | -0.27% |
Rental service | 16,729,533.24 | 18,895,147.63 | -12.94% | -44.65% | 8.05% | -55.09% |
Property management service | 11,075,828.00 | 10,769,205.28 | 2.77% | -84.26% | -84.19% | -0.41% |
Other | 6,721,318.52 | 4,916,609.72 | 26.85% | -2.58% | 18.15% | -12.83% |
By product | ||||||
Housing units | 223,833,107.28 | 100,408,666.61 | 55.14% | -53.33% | -26.94% | -16.20% |
Shops and parking place | 4,576,164.27 | 3,888,942.58 | 15.02% | 1,061.35% | 1,541.47% | -24.86% |
Other | 137,775,227.35 | 135,587,663.53 | 1.59% | -35.81% | -30.22% | -7.89% |
By geographic segment | ||||||
Guangdong Province | 318,380,165.32 | 193,072,432.97 | 39.36% | -49.86% | -29.22% | -17.69% |
Other regions in China | 47,804,333.58 | 46,812,839.75 | 2.07% | -19.39% | -20.92% | 1.90% |
Overseas | -100.00% | -100.00% |
Main business data of the most recent period restated according to changed statistical caliber for the Reporting period
□Applicable ? Not applicable
Any over 30% YoY movements in the data above and why:
□Applicable ? Not applicable
IV Non-Core Business Analysis
□Applicable ? Not applicable
V Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
End of Reporting Period | End of the same period of last year | Increase/decrease in proportion | Notes to significant changes | |||
Amount | Proportion to total assets | Amount | Proportion to total assets | |||
Monetary assets | 326,915,586.65 | 5.68% | 564,358,824.63 | 9.13% | -3.45% | Payment of land VAT of Donghu Mingyuan in the current period |
Accounts receivable | 71,948,944.71 | 1.25% | 61,048,785.11 | 0.99% | 0.26% | |
Inventories | 4,070,379,390.87 | 70.75% | 4,034,933,562.62 | 65.26% | 5.49% | Development of projects |
Investment property | 578,827,312.45 | 10.06% | 588,865,777.16 | 9.52% | 0.54% | |
Long-term equity investments | 272,168.28 | 0.00% | 272,168.28 | 0.00% | 0.00% | |
Fixed assets | 22,677,228.99 | 0.39% | 23,920,424.55 | 0.39% | 0.00% | |
Right-of-use assets | 298,924.34 | 0.01% | 365,351.97 | 0.01% | 0.00% | |
Short-term borrowings | 56,831,235.17 | 0.99% | 50,440,116.24 | 0.82% | 0.17% | |
Contract liabilities | 45,104,910.10 | 0.78% | 199,965,490.08 | 3.23% | -2.45% | |
Lease liabilities | 90,440.36 | 0.00% | 125,920.77 | 0.00% | 0.00% | |
Accounts payable | 116,304,350.46 | 2.02% | 141,447,559.24 | 2.29% | -0.27% | |
Taxes payable | 306,596,230.20 | 5.33% | 600,540,872.48 | 9.71% | -4.38% | Payment of land VAT of Donghu Mingyuan in the current period |
Other payables | 647,772,178.12 | 11.26% | 581,377,415.64 | 9.40% | 1.86% |
2. Major Assets Overseas
□Applicable ? Not applicable
3. Assets and Liabilities at Fair Value
? Applicable □ Not applicable
Unit: RMB
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) | 514,024,710.91 | 4,963,730.62 | 114,840,380.99 | 404,148,060.54 | ||||
4. Investments in other equity instruments | 36,322,704.33 | 5,945,521.73 | 22,490,765.41 | 19,777,460.65 |
Subtotal of financial assets | 550,347,415.24 | 4,963,730.62 | 5,945,521.73 | 137,331,146.40 | 423,925,521.19 | |||
Total of the above | 550,347,415.24 | 4,963,730.62 | 5,945,521.73 | 137,331,146.40 | 423,925,521.19 | |||
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
Item | Ending carrying value | Reasons |
Discount of accountsreceivable
Discount of accounts receivable | 56,831,235.17 | Pleged for short-term borrowings |
Inventories | 965,000,000.00 | Lands mortgaged for project development loans |
Total | 1,021,831,235.17 | -- |
VI Investment Analysis
1. Total Investments Made
□Applicable ? Not applicable
2. Significant Equity Investments Made in the Reporting Period
□Applicable ? Not applicable
3. Significant Non-equity Investments Ongoing in the Reporting Period
□Applicable ? Not applicable
4. Financial Investments
(1) Securities Investments
□Applicable ? Not applicable
No such cases in this Reporting Period
(2) Investment in Derivative Financial Instruments
□Applicable ? Not applicable
No such cases in this Reporting Period
5. Use of Funds Raised
□Applicable ? Not applicable
No such cases in this Reporting PeriodVII 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
Counterparty | Equity interests sold | Date of sale | Selling price (RMB’0,000) | Amount contributed by the equity interests to net income of the Company from period-beginning to date of sale (RMB’0,000) | Effect of the sale on the Company | Amount contributed by the sale to net income of the Company as a percentage of the Company’s net income (%) | Pricing principle | Related-party transaction or not | Relationship between counterparty and the Company | Ownership fully transferred or not | Executed as scheduled or not, if not, state reason and actions taken | Disclosure date | Index to disclosed information |
Shenzhen International Trade Center Property Management Co., Ltd. | 100% of equity interests of Shenzhen Property Management Co., Ltd. | 11 February 2022 | 19,667.67 | -170.85 | This transaction is in line with the Company’s development strategies and is conducive to the Company’s further optimization and adjustment of its industry structure, enrichment of capital reserves, expansion of new profit growth areas, and continuous | 84.42% | The transaction price is determined based on the net asset valuation assessed by the evaluation agency on the | Yes | Shenzhen International Trade Center Property Management Co., Ltd. (hereinafter referred to as “ITC Property Management”) is a wholly- | Yes | Yes | 15 February 2022 | Announcement on the Progress of the Related-party Transaction regarding the Transfer of 100% of Equity |
improvement of its quality. In 2022, the counterparty has paid 90% (RMB177,009,000) of the equity transfer payment to the Group in accordance with the equity transfer agreement. After the equity transfer, the Company derecognized the said equity and confirmed the investment income of RMB163,352,100 in consolidated financial statements. The matter has a positive impact on the Company cash flow and operating results in 2022. | base date of 30 June 2021. | owned subsidiary of ShenZhen Properties & Resources Development (Group) Ltd. “hereinafter referred to as “SZPRD” and both SZPRD and the Company are majority-owned subsidiaries of Shenzhen Investment Holdings Co., Ltd. Thus, an association relationship is formed. | Interests of Shenzhen Property Management Co., Ltd. (No.: 2022-001) disclosed on www.cninfo.com.cn |
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 | 1,280,229,814.39 | -11,627,303.66 | -4,071,985.31 | -4,115,342.31 | |
Shenzhen SPG Chuanqi Real Estate Development Co., Ltd. | Subsidiary | Development of real estate | 30,000,000.00 | 1,005,698,613.00 | 994,342,512.39 | -31,018.76 | -31,018.76 | |
Shenzhen | Subsidiary | Developme | 30,000,000. | 175,115,54 | 120,937,15 | 984,161.91 | - | - |
SPG Longgang Development Co., Ltd. | nt of real estate | 00 | 3.31 | 8.53 | 3,807,820.28 | 3,807,818.90 | ||
Shantou SEZ, Wellam FTY, Building Development, Co., Ltd. | Subsidiary | Development of real estate | 91,226,120.44 | 158,268,017.90 | 122,473,682.79 | 858,036.19 | -116,470.93 | -87,353.19 |
Shantou Huafeng Real Estate Development Co., Ltd. | Subsidiary | Development of real estate | 80,000,000.00 | 881,155,781.21 | 21,097,941.37 | 81,186,381.08 | 78,891.89 | 59,168.92 |
Great Wall Estate Co., Inc. (U.S.) | Subsidiary | Lease | 2,051,146.00 | 18,477,637.42 | -85,436,179.35 | -505,165.93 | -505,165.93 | |
Shenzhen Zhentong Engineering Co., Ltd. | Subsidiary | Installation and construction | 10,000,000.00 | 433,122,890.69 | 19,873,575.22 | 104,462,965.25 | 51,215.55 | 51,215.55 |
Shenzhen Property Management Co., Ltd. | Subsidiary | Property management | 7,250,000.00 | 91,865,021.54 | 33,324,622.23 | 9,750,410.15 | -1,632,117.50 | -1,708,521.80 |
Shenzhen Petrel Hotel Co., Ltd. | Subsidiary | Lease and property management | 30,000,000.00 | 43,096,625.81 | 36,214,131.59 | 4,903,667.16 | -3,230,165.64 | -3,232,056.63 |
Shenzhen Huazhan Construction Supervision Co., Ltd. | Subsidiary | Construction supervision | 8,000,000.00 | 10,784,124.99 | 10,464,036.33 | 1,898,997.93 | 424,971.25 | 428,815.42 |
Xin Feng Enterprise Co., Ltd. | Subsidiary | Investment and management | 502,335.00 | 390,732,063.68 | -139,428,615.69 | -5,725,610.33 | -5,725,610.33 |
Subsidiaries obtained or disposed in the Reporting Period:
? Applicable □ Not applicable
Name | Way of gaining and disposing subsidiaries | Influence on overall production and operation as well as performance |
Shenzhen Property Management Co., Ltd. | Negotiating transfer | Refer to Note VII Sale of Major Assets and Equity Interests |
Information about major majority- and minority-owned subsidiaries:
1. In May 2021, through the payment of consideration of RMB450 million, the Group acquired 51% equity interest in 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 andis expected to achieve revenue of RMB6 billion and total profit of approximately RMB1.8 billion from 2023 to 2025. The Grouphas control over the project company, which has been included in the scope of consolidation since May 2021. The LinxinyuanProject Phase I was opened to presale in December 2021 with the presale contract amount of RMB11.85 million for H1 2022.
2. The subordinate subsidiaries engaged in real estate development also include: Shenzhen SPG Chuanqi Real Estate DevelopmentCo., Ltd., Shenzhen SPG Longgang Development Co., Ltd., Shantou SEZ, Wellam FTY, Building Development, Co., Ltd. andShantou Huafeng Real Estate Development Co., Ltd. The Guangmingli project developed by Shenzhen SPG Chuanqi Real Estate
Development Co., Ltd. started in January 2022 and is still in the development and construction stage. The Cuilinyuan projectdeveloped by Shenzhen SPG Longgang Development Co., Ltd. realized the sales amount of RMB19.4 million but not meeting thecondition of income recognition yet. Jinyedao and YuejingDongfang developed by Shantou SEZ, Wellam FTY, BuildingDevelopment, Co., Ltd. left a few amount of remaining buildings for sale. And Shantou Huafeng Real Estate Development Co.,Ltd. was responsible for the development of Tianyuewan project (divided into Phase I and Phase II). Tianyuewan Phase I wasopened for sale in October 2016 and completed in December 2019. The Phase II started construction in November 2018 and wascompleted at the end of June 2021. The overall sales progress is relatively slow with an accumulated sales rate of about 77% forPhase I and 18% for Phase II.
3. Shenzhen Property Management Co., Ltd was engaged in the industry of property management. The Group signed the equitytransfer agreement with Shenzhen International Trade Center Property Management Co., Ltd. in 2021 and the equity transfer hasbeen completed in 2022. Since then, Shenzhen Property Management Co., Ltd. will no longer be included in the scope of theGroup’s consolidated financial statements. For details, please refer to Note VII Sale of Major Assets and Equity Interests.
4. Shenzhen Zhentong Engineering Co., Ltd. was engaged in the business of building installation and maintenance with theoperating revenues of RMB104 million and of 28.53% to the operating revenues of the Company for H1 2022.
5. The net profit of Xin Feng Enterprise Co., Ltd. for H1 2022 was RMB-5.73 million, mainly due to the changes of exchange rateand because it conducts no business.
6. The net profit of Shenzhen Petrel Hotel Co., Ltd. for H1 2022 was RMB-3.23 million, mainly due to the reduction of leaseincome affected by the pandemic.IX Structured Bodies Controlled by the Company
□Applicable ? Not applicable
X Risks Facing the Company and Countermeasures
1. Macroeconomic risks and countermeasures
The real estate industry has a greater correlation with the macroeconomy and is more influenced by themacroeconomic cycle. Since this year, the international environment has become more complex and severe, andthe world economic growth is obviously slowing down. Against the background of the rising risk of stagflation inthe global economy, there are still many unstable and uncertain factors in the recovery of the domestic economy.The Company will continue to pay attention to the international and domestic macroeconomic situation andactively adjust its business strategy.
2. Industry regulation risks and countermeasures
Under the guidance of "housing is for living in, not for speculation", the market is entering a period ofadjustment and the industry is entering a stage of profound changes. The development of the Company isundergoing new tests. The Company will continue to deepen its research on industry policies, follow thenational strategies, innovate its operating model and optimize its development method.
3. Business operating risks and countermeasures
During the Reporting Period, based on the guidance of “housing is for living in, not for speculation”, all overthe country has introduced policies to boost the property market, but relevant policies in first-tier cities have notbeen significantly relaxed. The Company will pay close attention to changes in markets and industry policies,
focus on project construction and real estate sales to strengthen the foundation of the main business. At thesame time, the Company will actively explore new areas and cultivate new business models.
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 2021 Annual General Meeting | Annual General Meeting | 63.56% | 17 May 2022 | 18 May 2022 |
Resolutions of2021 AnnualGeneral Meetingdisclosed on ChinaSecurities,Securities Times,Ta Kung Pao andwww.cninfo.com.cn (No.: 2022-018)
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 |
Wang Jiangtao | Supervisor, Chairman of the Supervisory Committee | Elected | 17 May 2022 | |
Li Lian | Supervisor, Chairman of the Supervisory Committee | Left | 17 May 2022 | Retirement |
Wei Hanping | Vice GM | Left | 7 June 2022 | Retirement |
III Interim Dividend Plan
□Applicable ? Not applicable
The Company has no interim dividend plan, either in the form of cash or stock.
IV Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measuresfor Employees
□Applicable ? Not applicable
No such cases in the Reporting Period.
Part V Environmental and Social ResponsibilityI Major Environmental Issues
Indicate 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 isn’t a heavily polluting business identified by the environmental protection authorities of China.
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 actively participated in and supported the charity fund-raising activity of“Joining Hands on Fertility Care, Caring for Families in Need” of Jiabei Community, providing assistance andfinancial aids to “families losing the only child or with the only child disabled” and difficult families observingthe family planning in the region, totaling RMB30,000. It timely set up the anti-epidemic teams to join the frontline of epidemic prevention and control with 10 full-time anti-epidemic volunteers and 13 volunteers whovoluntarily enrolled in the community anti-epidemic in the Group. It aided the anti-epidemic work of NanhuStreet and donated anti-epidemic materials with a total value of more than RMB50,000. At the same time, itsaffiliated Petrel Hotel assisted Nanhu Street in providing services for the nucleic acid testing sampling point inPetrel Plaza and carrying out nucleic acid testing. It undertook the reconstruction of Xiabei Village PrimarySchool in Longdu Town, Chenghai District, Shantou City and the assistance project caring the study and livingconditions of primary school students in this town (installing air-conditioners for Longdu Central PrimarySchool). The Company did its best to help market entities tide over difficulties with rent reduction andexemption of more than RMB20 million for micro, small and medium-sized enterprises. It actively participatedin the special action of consumption poverty alleviation and purchased RMB469,000 of poverty alleviationproducts within the Group, making due contributions to promoting rural revitalization.
Part VI Significant EventsI 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
Commitment | Promisor | Type of commitment | Details of commitment | Date of commitment making | Term of commitment | Fulfillment |
Other commitments made to minority interests | Shenzhen Investment Holdings Co., Ltd. | Avoiding horizontal competition | To avoid horizontal competition, Shenzhen Investment Holdings Co., Ltd. made such a commitment: For the Company’s existing business that has horizontal competition with ShenZhen Properties & Resources Development (Group) Ltd., Shenzhen Investment Holdings Co., Ltd. will, within the scope permitted by laws and regulations, timely launch one or several of the following solutions that is practically feasible, and complete the implementation of the relevant solution(s) before 9 November 2024 to solve the existing horizontal competition problem: (1) Solve the horizontal competition between the two through asset sales or asset replacement; (2) Solve the horizontal competition between the two through equity transfer; (3) Take other measures that can effectively solve the problem of horizontal competition. Above commitment came into force upon the review and approval on the shareholders’ meeting of ShenZhen Properties & Resources Development (Group) Ltd. (dated 27 September 2021). | 10 September 2021 | Before 9 November 2024 | Ongoing |
Fulfilled on time | Yes | |||||
Specific reasons for failing to fulfill commitments on time and plans for next step (if any) | N/A |
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 AuditorAre 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 MattersSignificant 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 | 2,100 | 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 | Shaanxi High People’s Court Sold all assets of Business Company by auction in accordance with laws in 2004. The applicant has received RMB15.20 million. Now Business Company has no executable properties and Xi’an Joint Commission on Commerce has been | 18 March 2022 | Annual Report 2021 (full text) (No.: 2022-006) on www.cninfo.com.cn |
and severally obligation of the interests of the compensation; .③ Business Company shall bear RMB227,500 of the acceptance fee and the security fee. | refusing to execute the ruling. It is difficult to recover the rest. |
Other legal matters:
□Applicable ? Not applicable
IX Punishments and Rectifications
□Applicable ? Not applicable
X Credit Quality of the Company as well as its Controlling Shareholder and De 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
Approved on the 69
th
Meeting of the 7
th
Board of Directors and the 3
rdExtraordinary General Meeting of 2021,the Company decided to transfer 100% equity interests of Shenzhen Property Management Co., Ltd., thewholly-owned subsidiary of it, to Shenzhen International Trade Center Property Management Co., Ltd. Fordetails, please refer to Note VII Sale of Major Assets and Equity Interests in Part III.
Index to announcements on major related-party transactions
Announcement | Disclosure time | Disclosure website |
Announcement on Resolutions of the 69th Meeting of the 7th Board of Directors (No.: 2021-049), Announcement on the Related-Party Transaction regarding the Transfer of 100% of Equity Interests in Shenzhen Property Management Co., Ltd. (No.: 2021-050) | 14 December 2021 | www.cninfo.com.cn |
Announcement on Progress of the Related-Party Transaction regarding the Transfer of 100% of Equity Interests in Shenzhen Property Management Co., Ltd. (No.: 2021-052) | 24 December 2021 | www.cninfo.com.cn |
Announcement on Resolutions of the 3rd Extraordinary General Meeting of 2021 (No.: 2021-053) | 30 December 2021 | www.cninfo.com.cn |
Announcement on Progress of the Related-Party Transaction regarding the Transfer of 100% of Equity Interests in Shenzhen Property Management Co., Ltd. (No.: 2022-001) | 15 February 2022 | www.cninfo.com.cn |
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 | 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 |
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 | 50,000 | 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) | 50,000 | Total actual amount of such guarantees in the Reporting Period (B2) | 50,000 | |||||||
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) | 50,000 | |||||||
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) | 50,000 | Total actual guarantee amount in the Reporting Period (A2+B2+C2) | 50,000 |
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) | 50,000 |
Total actual guarantee amount (A4+B4+C4) as % of the Company’s net assets | 12.51% | ||
Of which: |
Compound guarantees
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 | 130,000 | 40,414.81 | 0 | 0 |
Total | 130,000 | 40,414.81 | 0 | 0 |
Particulars of cash entrusted for wealth management with single significant amount or low security, bad liquidity, and no capitalpreservation
□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 Events
□Applicable ? Not applicable
No such cases in the Reporting Period.XIV Significant Events of Subsidiaries
□Applicable ? Not applicable
Part VII Share Changes and Shareholder InformationI Share Changes
1. Share Changes
Unit: share
Before | Increase/decrease (+/-) | 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 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
1.1 Shares held by the state | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
1.2 Shares held by state-own legal person | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
1.3 Shares held by other domestic investors | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
Among which: shares held by domestic legal person | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
Shares held by domestic natural person | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
1.4 Oversea shareholdings | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
Among which: shares held by oversea legal person | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
Shares held by oversea natural person | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
2. Unrestricted shares | 1,011,660,000 | 100.00% | 0 | 0 | 0 | 0 | 0 | 1,011,660,000 | 100.00% |
2.1 RMB ordinary shares | 891,660,000 | 88.14% | 0 | 0 | 0 | 0 | 0 | 891,660,000 | 88.14% |
2.2 Domestically listed foreign shares | 120,000,000 | 11.86% | 0 | 0 | 0 | 0 | 0 | 120,000,000 | 11.86% |
2.3 Oversea listed foreign shares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
2.4 Other | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
3. Total shares | 1,011,660,000 | 100.00% | 0 | 0 | 0 | 0 | 0 | 1,011,660,000 | 100.00% |
Reasons for share changes:
□Applicable ? Not applicable
Approval of share changes:
□Applicable ? Not applicable
Transfer of share ownership:
□Applicable ? Not applicable
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 | 61,286 | Total number of preference shareholders with resumed voting rights at the period-end (if any) (see Note 8) | 0 | ||||||||
Shareholding of ordinary shareholders holding more than 5% shares or the top 10 of ordinary shareholders | |||||||||||
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 of shares | Amount | ||||||||||
Shenzhen Investment Holdings Co., Ltd | State-owned legal person | 57.19% | 578,595,836 | 578,595,836 | |||||||
Shenzhen State-owned Equity Management Co., Ltd. | Domestic non-state-owned legal person | 6.35% | 64,288,426 | 64,288,426 | |||||||
Yang Jianmin | Domestic natural person | 0.84% | 8,516,277 | 8,516,277 | |||||||
Zhou Zhijian | Domestic natural person | 0.57% | 5,798,816 | 5,798,816 | |||||||
Zhang Xiujuan | Domestic natural person | 0.36% | 3,597,300 | 3,597,300 | |||||||
Wang Yulan | Domestic natural person | 0.33% | 3,378,691 | 3,378,691 | |||||||
Pan Jun | Domestic natural person | 0.23% | 2,360,000 | 2,360,000 | |||||||
Lin Hanteng | Domestic natural person | 0.21% | 2,100,400 | 2,100,400 | |||||||
Liu Yuqing | Domestic natural person | 0.21% | 2,080,201 | 2,080,201 | |||||||
He Qiao | Domestic natural person | 0.20% | 2,043,700 | 2,043,700 | |||||||
Strategic investor or | None |
general legal person becoming a top-10 ordinary shareholder due to rights issue (if any) | |||||
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 | None | ||||
Special account for share repurchases (if any) among the top 10 shareholders | None | ||||
Top 10 unrestricted shareholders | |||||
Name of shareholder | Unrestricted shares held at the period-end | Shares by type | |||
Type | Shares | ||||
Shenzhen Investment Holdings Co., Ltd | 578,595,836 | RMB ordinary shares | 578,595,836 | ||
Shenzhen State-owned Equity Management Co., Ltd. | 64,288,426 | RMB ordinary shares | 64,288,426 | ||
Yang Jianmin | 8,516,277 | RMB ordinary shares | 8,516,277 | ||
Zhou Zhijian | 5,798,816 | RMB ordinary shares | 5,798,816 | ||
Zhang Xiujuan | 3,597,300 | RMB ordinary shares | 3,597,300 | ||
Wang Yulan | 3,378,691 | RMB ordinary shares | 3,378,691 | ||
Pan Jun | 2,360,000 | RMB ordinary shares | 2,360,000 | ||
Lin Hanteng | 2,100,400 | RMB ordinary shares | 2,100,400 | ||
Liu Yuqing | 2,080,201 | RMB ordinary shares | 2,080,201 | ||
He Qiao | 2,043,700 | RMB ordinary shares | 2,043,700 | ||
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 (if any) | Among the top 10 shareholders of the Company, the third, fifth, eighth, ninth and tenth shareholders respectively held 5,368,800 shares, 3,597,300 shares, 860,000 shares, 2,010,201 shares, and 1,942,400 shares in their credit securities accounts. |
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of theCompany 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
Name | Office title | Incumbent/Former | Beginning shareholding (share) | Increase in the Reporting Period (share) | Decrease in the Reporting Period (share) | Ending shareholding (share) | Restricted shares granted at the period-beginning (share) | Restricted shares granted in the Reporting Period (share) | Restricted shares granted at the period-end (share) |
Deng Kangchen | Director | Incumbent | 10,000 | 0 | 2,500 | 7,500 | 0 | 0 | 0 |
g | |||||||||
Total | -- | -- | 10,000 | 0 | 2,500 | 7,500 | 0 | 0 | 0 |
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 Statements
I. 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 2022
Presented in RMB
Item | 30 June 2022 | 1 January 2022 |
Current assets: | ||
Cash at bank and on hand | 326,915,586.65 | 564,358,824.63 |
Provision of Settlement fund | ||
Funds lent | ||
Financial assets held for trading | 404,148,060.54 | 514,024,710.91 |
Derivative financial assets | ||
Notes receivable | 200,000.00 | 3,530,537.37 |
Accounts receivable | 71,948,944.71 | 61,048,785.11 |
Accounts receivable financing | ||
Prepayments | 12,926,401.55 | 4,899,011.32 |
Insurance premiums receivables | ||
Cession premiums receivables | ||
Provision of cession premiums | ||
Other receivables | 49,014,731.62 | 30,614,008.08 |
Including: Interest receivable | ||
Dividends receivable | 1,052,192.76 | 1,052,192.76 |
Recoursable Financial assets acquired | ||
Inventories | 4,070,379,390.87 | 4,034,933,562.62 |
Contractual assets | ||
Assets held for sale | 78,940,232.10 | |
Non-current assets due within one year | ||
Other current assets | 36,050,680.73 | 68,216,887.04 |
Total current assets | 4,971,583,796.67 | 5,360,566,559.18 |
Non-current assets: | ||
Loans and payments | ||
Debt investment | ||
Investments in other debt obligations | ||
Long-term receivables | ||
Long-term equity investments | 272,168.28 | 272,168.28 |
Investments in other equity instrument | 19,777,460.65 | 36,322,704.33 |
Other non-current financial assets | ||
Investment property | 578,827,312.45 | 588,865,777.16 |
Fixed assets | 22,677,228.99 | 23,920,424.55 |
Construction in progress | ||
Productive living assets | ||
Oil and gas assets | ||
Right-of-use assets | 298,924.34 | 365,351.97 |
Intangible assets | ||
Development costs | ||
Goodwill | ||
Long-term deffered expense | 2,047,111.97 | 2,164,963.18 |
Deferred tax assets | 157,995,364.26 | 170,020,101.78 |
Other non-current assets | ||
Total non-current assets | 781,895,570.94 | 821,931,491.25 |
Total assets | 5,753,479,367.61 | 6,182,498,050.43 |
Current liabilities: | ||
Short-term loans | 56,831,235.17 | 50,440,116.24 |
Borrowings from central bank | ||
Deposit funds | ||
Financial liabilities held for trading | ||
Derivative financial liabilities | ||
Notes payable | 235,818,710.20 | 247,376,403.56 |
Accounts payable | 116,304,350.46 | 141,447,559.24 |
Advances from customers | 6,478,938.55 | 6,411,427.04 |
Contractual liabilities | 45,104,910.10 | 199,965,490.08 |
Funds from sale of financial assets with repurchase agreements | ||
Deposits from customer and interbank | ||
Funds received as an agent of stock exchange | ||
Funds received as stock underwrite | ||
Payroll payable | 47,074,012.25 | 43,926,711.78 |
Tax payable | 306,596,230.20 | 600,540,872.48 |
Other payables | 647,772,178.12 | 581,377,415.64 |
Including: Interest payable | 16,535,277.94 | 16,535,277.94 |
Dividends payable | 89,026,080.00 |
Handling charges and commissions payable | ||
Cession premiums payables | ||
Liabilities held for sale | 65,752,452.06 | |
Non-current liabilities due within one year | 103,779.30 | 83,023.44 |
Other current liabilities | 2,352,351.37 | 8,196,849.13 |
Total current liabilities | 1,464,436,695.72 | 1,945,518,320.69 |
Non-current liabilities: | ||
Provision for insurance contracts | ||
Long-term loans | ||
Debentures payable | ||
Including: Preferred shares | ||
Perpetual bonds | ||
Lease liabilities | 90,440.36 | 125,920.77 |
Long-term payables | ||
Long-term employee benefits payable | ||
Provisions | ||
Deferred income | ||
Deferred tax liabilities | 6,540,205.39 | 9,524,639.56 |
Other non-current liabilities | ||
Total non-current liabilities | 6,630,645.75 | 9,650,560.33 |
Total liabilities | 1,471,067,341.47 | 1,955,168,881.02 |
Equity: | ||
Share capital | 1,011,660,000.00 | 1,011,660,000.00 |
Other equity instruments | ||
Including: Preferred shares | ||
Perpetual bonds | ||
Capital reserves | 978,244,910.11 | 978,244,910.11 |
Less: treasury shares | ||
Other comprehensive income | 26,995,808.40 | 36,088,963.95 |
Specific reserve | ||
Surplus reserve | 241,144,854.93 | 241,144,854.93 |
Generic Risk Reserve | ||
Retained earnings | 1,738,673,586.38 | 1,671,121,562.98 |
Total equity attributable to shareholders of the company | 3,996,719,159.82 | 3,938,260,291.97 |
Non-controlling interests | 285,692,866.32 | 289,068,877.44 |
Total equity | 4,282,412,026.14 | 4,227,329,169.41 |
Total liabilities and equity | 5,753,479,367.61 | 6,182,498,050.43 |
Legal representative: Zhengyu Liu General Accountant:JianFei Wang The head of the accountingdepartment: Yanjun Qiao
2. Financial Position Statement of the Parent Entity
Presented in RMB
Item | 30 June 2022 | 1 January 2022 |
Current assets: | ||
Cash at bank and on hand | 208,547,834.21 | 304,130,181.74 |
Financial assets held for trading | 404,148,060.54 | 514,024,710.91 |
Derivative financial assets | ||
Notes receivable | ||
Accounts receivable | 78,189.53 | 9,708,285.93 |
Accounts receivable financing | ||
Prepayments | 200,000.00 | 200,000.00 |
Other receivables | 1,606,595,768.89 | 1,587,300,891.76 |
Including: Interest receivable | ||
Dividends receivable | ||
Inventories | 8,487,135.31 | 42,348,499.39 |
Contractual assets | ||
Assets held for sale | 12,821,791.52 | |
Non-current assets due within one year | ||
Other current assets | 1,767,077.36 | 7,144,189.24 |
Total current assets | 2,229,824,065.84 | 2,477,678,550.49 |
Non-current assets: | ||
Debt investment | ||
Investments in other debt obligations | ||
Long-term receivables | ||
Long-term equity investments | 1,582,657,055.03 | 1,582,657,055.03 |
Investments in other equity instruments | 19,777,460.65 | 13,831,938.92 |
Other non-current financial assets | ||
Investment property | 467,185,993.27 | 476,622,089.39 |
Fixed assets | 14,871,741.25 | 15,722,627.74 |
Construction in progress | ||
Productive living assets | ||
Oil and gas assets | ||
Right-of-use assets | ||
Intangible assets | ||
Development costs | ||
Goodwill | ||
Long-term deferred expense | 1,068,887.61 | 1,167,500.83 |
Deferred tax assets | 134,299,017.38 | 134,299,017.38 |
Other non-current assets | ||
Total non-current assets | 2,219,860,155.19 | 2,224,300,229.29 |
Total assets | 4,449,684,221.03 | 4,701,978,779.78 |
Current liabilities: | ||
Short-term loans | ||
Financial liabilities held for trading | ||
Derivative financial liabilities | ||
Notes payable | ||
Accounts payable | 18,580,208.85 | 29,750,790.44 |
Advances from customers | ||
Contractual liabilities | 7,173,369.08 | 159,752,627.50 |
Payroll payable | 35,540,386.85 | 33,496,830.45 |
Tax payable | 286,660,372.57 | 588,031,923.05 |
Other payables | 334,293,250.83 | 207,613,656.49 |
Including: Interest payable | 16,535,277.94 | 16,535,277.94 |
Dividends payable | 89,026,080.00 | |
Liabilities held for sale | ||
Non-current liabilities due within one year | ||
Other current liabilities | 358,652.92 | 7,987,260.50 |
Total current liabilities | 682,606,241.10 | 1,026,633,088.43 |
Non-current liabilities: | ||
Long-term loans | ||
Debentures payable | ||
Including: Preferred shares | ||
Perpetual bonds | ||
Lease liabilities | ||
Long-term payables | ||
Long-term employee benefits payable | ||
Provisions | ||
Deferred income | ||
Deferred tax liabilities | 5,027,520.65 | 5,027,520.65 |
Other non-current liabilities | ||
Total non-current liabilities | 5,027,520.65 | 5,027,520.65 |
Total liabilities | 687,633,761.75 | 1,031,660,609.08 |
Equity: | ||
Share capital | 1,011,660,000.00 | 1,011,660,000.00 |
Other equity instruments | ||
Including: Preferred shares | ||
Perpetual bonds | ||
Capital reserves | 964,711,931.13 | 964,711,931.13 |
Less: treasury shares | ||
Other comprehensive income | 7,319,475.92 | 1,373,954.19 |
Specific reserve | ||
Surplus reserve | 218,015,241.52 | 218,015,241.52 |
Retained earnings | 1,560,343,810.71 | 1,474,557,043.86 |
Total equity | 3,762,050,459.28 | 3,670,318,170.70 |
Total liabilities and equity | 4,449,684,221.03 | 4,701,978,779.78 |
3. Consolidated Statement of Profit or Loss and Other Comprehensive Income
Presented in RMB
Item | 6 months ended 30 June 2022 | 6 months ended 30 June 2021 |
1. Revenue | 366,184,498.90 | 694,598,218.47 |
Including: Operating revenue | 366,184,498.90 | 694,598,218.47 |
Interest income | ||
Insurance premium income |
Handling charge and commission income | ||
2. Expenses | 337,004,632.25 | 520,035,493.63 |
Including: operating expenses | 239,885,272.72 | 331,975,678.55 |
Interest expense | ||
Handling charge and commission expense | ||
Refund of Insurance premium | ||
Net payment for insurance claims | ||
Net provision for insurance contracts | ||
Commissions on insurance polices | ||
Cession charges | ||
Taxes and surcharges | 56,981,582.00 | 147,359,118.39 |
Selling and distribution expense | 10,726,031.33 | 16,815,600.06 |
General and administrative expenses | 33,013,300.52 | 40,299,584.22 |
Research and development expense | ||
Financial expense | -3,601,554.32 | -16,414,487.59 |
Including: Interest expense | ||
Interest income | 2,903,815.84 | 16,398,025.57 |
Add: Other income | 400,232.43 | 643,733.52 |
Investment income (“-” for losses) | 166,815,177.24 | |
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) | 4,963,730.62 | 2,329,484.00 |
Credit impairment loss (“-” for loss) | 131,316.20 | 1,142,580.28 |
Impairment losses (“-” for losses) | ||
Gains from assets disposal (“-” for losses) | ||
3. Operating profit (“-” for loss) | 201,490,323.14 | 178,678,522.64 |
Add: Non-operating income | 552,207.24 | 1,370,757.88 |
Less: Non-operating expense | 45,299.06 | 25,246.47 |
4. Profit before income tax (“-” for | 201,997,231.32 | 180,024,034.05 |
losses) | ||
Less: Income tax expense | 59,036,968.69 | 47,841,099.11 |
5. Net profit for the year (“-” for net losses) | 142,960,262.63 | 132,182,934.94 |
5.1 Classification according to operation continuity | ||
5.1.1 Net profit from continuing operations (“-” for net loss) | 144,668,784.43 | 132,182,934.94 |
5.1.2Net profit from discontinued operations (“-” for net loss) | -1,708,521.80 | |
5.2 Classification according to attribute | ||
5.2.1 Members of the parent entity ("-" for net loss) | 145,128,330.14 | 132,447,122.14 |
5.2.2 Non-controlling interests (“-” for net loss) | -2,168,067.51 | -264,187.20 |
6. Other comprehensive income (net of tax) | 1,148,674.10 | 459,551.69 |
Other comprehensive income (net of tax) attributable to members of the parent entity | 2,356,617.71 | 1,153,397.28 |
6.1 Other comprehensive income items that will not be reclassified subsequently to profit or loss | 5,175,152.79 | 570,414.67 |
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 | 5,175,152.79 | 570,414.67 |
6.1.3 Changes in the fair value of investments in other equity instruments | ||
6.1.4 Changes in the fair value of the company’s credit risks | ||
6.1.5 Other | ||
6.2 Other comprehensive income items that may be reclassified subsequently to profit or loss | -2,818,535.08 | 582,982.61 |
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 | -2,818,535.08 | 582,982.61 |
6.2.7 Other | ||
Other comprehensive income (net of tax) attributable to non-controlling interests | -1,207,943.61 | -693,845.59 |
7. Total comprehensive income for the period | 144,108,936.73 | 132,642,486.63 |
Attributable to members of parent entity | 147,484,947.85 | 133,600,519.42 |
Attributable to non-controlling interests | -3,376,011.12 | -958,032.79 |
8. Earnings per share | ||
8.1 Basic earnings per share | 0.1435 | 0.1309 |
8.2 Diluted earnings per share | 0.1435 | 0.1309 |
In a business combination involving enterprises under common control, (net losses)/net profit of combinedparties before the combination date is RMB 0.00, and (net losses)/net profit of combined parties in priorperiod is RMB 0.00.Legal representative: Zhengyu Liu General Accountant:JianFei Wang The head of the accountingdepartment: Yanjun Qiao
4. Statement of Profit or Loss and Other Comprehensive Income For the Parent Entity
Presented in RMB
Item | 6 months ended 30 June 2022 | 6 months ended 30 June 2021 |
1. Revenue | 160,994,487.38 | 455,740,814.41 |
Less: Cost of sales | 48,054,643.10 | 115,125,525.93 |
Taxes and surcharges | 50,213,639.31 | 142,361,068.95 |
Selling and distribution expense | 1,136,952.69 | 11,176,992.53 |
General and administrative expenses | 19,684,166.38 | 24,102,955.71 |
Research and development |
expense | ||
Financial expense | -8,916,021.09 | -25,571,620.46 |
Including: Interest expense | ||
Interest income | 2,004,015.51 | 27,256,987.84 |
Add: Other income | 234,931.53 | 8,516.31 |
Investment income (“-” for losses) | 174,994,652.49 | |
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) | 4,963,730.62 | 2,329,484.00 |
Credit impairment loss (“-” for loss) | 78,105.19 | 586,866.00 |
Impairment losses (“-” for losses) | ||
Gains from assets disposal (“-” for losses) | ||
2. Operating profit (“-” for loss) | 231,092,526.82 | 191,470,758.06 |
Add: Non-operating income | 550,000.10 | 1,334,736.50 |
Less: Non-operating expense | 1,550.00 | |
3. Profit before income tax (“-” for losses) | 231,642,526.92 | 192,803,944.56 |
Less: Income tax expense | 56,829,680.07 | 48,074,842.78 |
4. Net profit for the year (“-” for net losses) | 174,812,846.85 | 144,729,101.78 |
4.1 Net profit from continuing operations (“-” for net loss) | 174,812,846.85 | 144,729,101.78 |
4.2 Net profit from discontinued operations (“-” for net losses) | ||
5. Other comprehensive income, net of tax | 5,945,521.73 | 568,376.57 |
5.1 Other comprehensive income items that will not be reclassified subsequently to profit or loss | 5,945,521.73 | 568,376.57 |
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 | 5,945,521.73 | 568,376.57 |
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 | 180,758,368.58 | 145,297,478.35 |
7. Earnings per share | ||
7.1 Basic earnings per share | 0.1787 | 0.1436 |
7.2 Diluted earnings per share | 0.1787 | 0.1436 |
5. Consolidated Statement Of Cash Flows
Presented in RMB
Item | 6 months ended 30 June 2022 | 6 months ended 30 June 2021 |
1. Cash flows from operating activities: | ||
Proceeds from sales of goods | 229,484,917.15 | 958,228,940.19 |
Net increase deposits from customers and placements from corporations in the same industry | ||
Net increase in loans from central bank | ||
Net increase in loans from other financial institution |
Cash premiums received on original insurance contracts | ||
Net proceeds from reinsurance | ||
Net increase in deposits and investment from insures | ||
Interest, handling charges and commissions received | ||
Net increase in fund deposits | ||
Net increase in proceeds from repurchase transactions | ||
Net proceeds from acting trading of securities | ||
Refund of taxes | 126,578,042.71 | |
Proceeds from other operating activities | 74,351,558.97 | 248,150,629.39 |
Sub-total of cash inflows | 430,414,518.83 | 1,206,379,569.58 |
Payment for goods and services | 195,347,145.81 | 843,952,869.40 |
Net increase in loans and payments on behalf | ||
Net increase in deposits in central bank and interbank | ||
Payments of claims for original insurance contracts | ||
Net increase in fund paid | ||
Interest, handling charges and Interest | ||
Commissions on issuance policies paid | ||
Payment to and for employees | 51,050,768.33 | 76,069,285.98 |
Payments of various taxes | 543,263,187.50 | 224,980,813.32 |
Payment for other operating activities | 188,868,560.53 | 346,917,352.34 |
Sub-total of cash outflows | 978,529,662.17 | 1,491,920,321.04 |
Net cash flows from operating activities | -548,115,143.34 | -285,540,751.46 |
2. Cash flows from investing activities: | ||
Proceeds from disposal of investments | ||
Investment returns received | 813,960.00 | |
Net proceeds from disposal of fixed assets, intangible assets and other long-term assets | 2,907.50 | 1,700.00 |
Net proceeds from disposal of subsidiaries and other business units | 139,836,766.74 | |
Proceeds from other investing activities | 115,000,000.00 | |
Sub-total of cash inflows | 255,653,634.24 | 1,700.00 |
Payment for acquisition of fixed assets, intangible assets and other long-term assets | 126,730.24 | 636,636.13 |
Payment for acquisition of investments |
Net increase in pledged loans | ||
Net payment for acquisition of subsidiaries and other business units | 449,881,758.15 | |
Payment for other investing activities | 1,300,000,000.00 | |
Sub-total of cash outflows | 126,730.24 | 1,750,518,394.28 |
Net cash flows from investing activities | 255,526,904.00 | -1,750,516,694.28 |
3. Cash flows from financing activities: | ||
Proceeds from investors | ||
Including: Proceeds from non-controlling shareholders of subsidiaries | ||
Proceeds from borrowings | ||
Proceeds from other financing activities | 331,178,702.21 | |
Sub-total of cash inflows | 331,178,702.21 | |
Repayments of borrowings | ||
Payment for dividends, profit distributions or interest | 88,014,419.99 | |
Including: Dividends and profits paid to non-controlling profits paid to non-controlling shareholders of subsidiaries | ||
Payment for other financing activities | ||
Sub-total of cash outflows | 88,014,419.99 | |
Net cash flows from financing activities | 243,164,282.22 | |
4. Effect of foreign exchange rate changes on cash and cash equivalents | 250,898.91 | -17,882.55 |
5. Net increase in cash and cash equivalents | -292,337,340.43 | -1,792,911,046.07 |
Add: Cash and cash equivalents as at the year beginning | 612,293,635.15 | 2,669,103,926.82 |
6. Cash and cash equivalent as at the year end | 319,956,294.72 | 876,192,880.75 |
6. Cash Flow Statement of the Company as the Parent
Presented in RMB
Item | 6 months ended 30 June 2022 | 6 months ended 30 June 2021 |
1. Cash flows from operating activities: | ||
Proceeds from sales of goods | 29,085,968.85 | 646,885,255.16 |
Refund of taxes | 76,602,710.88 | |
Proceeds from other operating activities | 187,691,251.29 | 332,351,724.25 |
Sub-total of cash inflows | 293,379,931.02 | 979,236,979.41 |
Payment for goods and services | 11,570,231.88 | 43,601,422.20 |
Payment to and for employees | 25,700,808.60 | 20,102,672.44 |
Payments of various taxes | 490,780,774.26 | 184,272,398.39 |
Payment for other operating activities | 32,392,663.29 | 222,180,710.27 |
Sub-total of cash outflows | 560,444,478.03 | 470,157,203.30 |
Net cash flows from operating activities | -267,064,547.01 | 509,079,776.11 |
2. Cash flows from investing activities: | ||
Proceeds from disposal of investments | ||
Investment returns received | 813,960.00 | |
Net proceeds from disposal of fixed assets, intangible assets and other long-term assets | 2,907.50 | 1,000.00 |
Net proceeds from disposal of subsidiaries and other business units | 177,009,030.00 | |
Proceeds from other investing activities | 206,413,737.42 | |
Sub-total of cash inflows | 384,239,634.92 | 1,000.00 |
Payment for acquisition of fixed assets, intangible assets and other long-term assets | 78,576.00 | 91,626.00 |
Payment for acquisition of investments | ||
Net payment for acquisition of subsidiaries and other business units | 450,000,000.00 | |
Payment for other investing activities | 207,513,737.42 | 1,644,696,200.26 |
Sub-total of cash outflows | 207,592,313.42 | 2,094,787,826.26 |
Net cash flows from investing activities | 176,647,321.50 | -2,094,786,826.26 |
3. Cash flows from financing activities: | ||
Proceeds from investors | ||
Proceeds from borrowings | ||
Proceeds from other financing activities | ||
Sub-total of cash inflows | ||
Repayments of borrowings | ||
Payment for dividends, profit distributions or interest | 88,014,419.99 | |
Payment for other financing activities | ||
Sub-total of cash outflows | 88,014,419.99 | |
Net cash flows from financing activities | -88,014,419.99 | |
4. Effect of foreign exchange rate changes on cash and cash equivalents | 102,684.42 |
5. Net increase in cash and cash equivalents | -90,417,225.51 | -1,673,618,785.72 |
Add: Cash and cash equivalents as at the year beginning | 297,680,168.50 | 2,311,776,619.47 |
6. Cash and cash equivalent as at the year end | 207,262,942.99 | 638,157,833.75 |
7. Consolidated Statement Of Changes in Equity
Presented in RMB
Item | 6 months ended 30 June 2022 | ||||||||||||||
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 | 36,088,963.95 | 241,144,854.93 | 1,671,121,562.98 | 3,938,260,291.97 | 289,068,877.44 | 4,227,329,169.41 | |||||||
Add: Changes of accounting policies | |||||||||||||||
Correction of prior period errors | |||||||||||||||
Business combination involving enterprises under common control | |||||||||||||||
Other | |||||||||||||||
II. Balance at the Beginning of the Year | 1,011,660,000.00 | 978,244,910.11 | 36,088,963.95 | 241,144,854.93 | 1,671,121,562.98 | 3,938,260,291.97 | 289,068,877.44 | 4,227,329,169.41 | |||||||
III. Changes | - | 67, | 58, | - | 55, |
in equity during the year (“- “for decrease) | 9,093,155.55 | 552,023.40 | 458,867.85 | 3,376,011.12 | 082,856.73 | ||||||||||
(I) Total comprehensive income | 2,356,617.71 | 145,128,330.14 | 147,484,947.85 | -3,376,011.12 | 144,108,936.73 | ||||||||||
(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 | -89,026,080.00 | -89,026,080.00 | -89,026,080.00 | ||||||||||||
1.Appropriation for surplus reserves | |||||||||||||||
2.Appropriation for general reserves | |||||||||||||||
3.Distribution to shareholders | -89,026,080.00 | -89,026,080.00 | -89,026,080.00 | ||||||||||||
4.Other |
(IV)Transfer within equity | -11,449,773.26 | 11,449,773.26 | |||||||||||||
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 | -11,449,773.26 | 11,449,773.26 | |||||||||||||
6.Other | |||||||||||||||
(V) Special Reserve | |||||||||||||||
1.Appropriation during the year | |||||||||||||||
2.Utilization during the year | |||||||||||||||
(VI) Others | |||||||||||||||
IV. Balance | 1,0 | 978 | 26, | 241 | 1,7 | 3,9 | 285 | 4,2 |
at the end of the period | 11,660,000.00 | ,244,910.11 | 995,808.40 | ,144,854.93 | 38,673,586.38 | 96,719,159.82 | ,692,866.32 | 82,412,026.14 |
Presented in RMB
Item | 6 months ended 30 June 2021 | ||||||||||||||
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 | 28,163,050.13 | 218,724,273.67 | 1,560,720,254.31 | 3,797,512,488.22 | -140,425,233.06 | 3,657,087,255.16 | |||||||
Add: Changes of accounting policies | |||||||||||||||
Correction of prior period errors | |||||||||||||||
Business combination involving enterprises under common control | |||||||||||||||
Other | |||||||||||||||
II. Balance at the Beginning of the Year | 1,011,660,000.00 | 978,244,910.11 | 28,163,050.13 | 218,724,273.67 | 1,560,720,254.31 | 3,797,512,488.22 | -140,425,233.06 | 3,657,087,255.16 | |||||||
III. Changes in equity | 0.00 | 7,925, | 22,420 | 110,40 | 140,74 | 429,49 | 570,24 |
during the year (“- “for decrease) | 913.82 | ,581.26 | 1,308.67 | 7,803.75 | 4,110.50 | 1,914.25 | |||||||||
(I) Total comprehensive income | 7,925,913.82 | 220,836,309.93 | 228,762,223.75 | -2,325,204.97 | 226,437,018.78 | ||||||||||
(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 | 22,420,581.26 | -110,435,001.26 | -88,014,420.00 | -88,014,420.00 | |||||||||||
1.Appropriation for surplus | 22,420,581.26 | -22,420,581.26 | |||||||||||||
1.Appropriation for general reserves | |||||||||||||||
3.Distribution to shareholders | -88,014,420.00 | -88,014,420.00 | -88,014,420.00 |
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 | 431,819,315. | 431,819,315. |
47 | 47 | ||||||||||||||
IV. Balance at the end of the period | 1,011,660,000.00 | 978,244,910.11 | 36,088,963.95 | 241,144,854.93 | 1,671,121,562.98 | 3,938,260,291.97 | 289,068,877.44 | 4,227,329,169.41 |
8. Consolidated Statement Of Changes in Equity Of The Parent Entity
Presented in RMB
Item | 6 months ended 30 June 2022 | |||||||||||
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 | 1,373,954.19 | 218,015,241.52 | 1,474,557,043.86 | 3,670,318,170.70 | ||||||
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 | 1,373,954.19 | 218,015,241.52 | 1,474,557,043.86 | 3,670,318,170.70 | ||||||
III. Changes in equity during the year (“- “for decrease) | 5,945,521.73 | 85,786,766.85 | 91,732,288.58 | |||||||||
(I) Total comprehensive income | 5,945,521.73 | 174,812,846.85 | 180,758,368.58 | |||||||||
(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 | -89,026,080.00 | -89,026,080.00 | ||||||||||
1.Appropriation for surplus | ||||||||||||
2.Distribution to shareholders | -89,026,080.00 | -89,026,080.00 | ||||||||||
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 | 7,319,475.92 | 218,015,241.52 | 1,560,343,810.71 | 3,762,050,459.28 |
Presented in RMB
Item | 6 months ended 30 June 2021 | |||||||||||
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 | 1,131,151.74 | 195,594,660.26 | 1,360,786,232.53 | 3,533,883,975.66 | ||||||
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 | 1,131,151.74 | 195,594,660.26 | 1,360,786,232.53 | 3,533,883,975.66 | ||||||
III. Changes in equity during the year (“- “for decrease) | 568,376.57 | 56,714,681.78 | 57,283,058.35 | |||||||||
(I) Total comprehensive income | 568,376.57 | 144,729,101.78 | 145,297,478.35 | |||||||||
(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 | -88,014,420.00 | -88,014,420.00 | ||||||||||
1.Appropriation for surplus | ||||||||||||
2.Distribution to shareholders | -88,014,420.00 | -88,014,420.00 | ||||||||||
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 | 1,699,528.31 | 195,594,660.26 | 1,417,500,914.31 | 3,591,167,034.01 |
III. Company informaitionShenzhen Special Economic Zone Real Estate and Properties (Group) Co., Ltd. (the “Group” or “the Company”)was established in July 1993, as approved by the Shenzhen Municipal Government with document SFBF (1993)
724. The Company issued A shares on 15 September 1993 and issued B shares on 10 January 1994. On 31 August1994, the issued B shares were listed in the New York Exchange market as class A recommendation. The totalshare capital is 1,011,660,000 shares, including 891,660,000 of A shares, and 120,000,000 of B shares. Thecompany business license registration number is 91440300192179585N, and the registered capital is CNY1,011,660,000.00. The Company’s headquarter is located at Floor 45-48, Shen Fang Plaza, Ren Min South Road,Luo Hu District, Shen Zhen, Guangdong province.On 13 October 2004, according to the document No. (2004) 223 “Decision on establishing Shenzhen investmentHolding Co., Ltd.” issued by State-Owned Assets Supervision and Administration Commission of ShenzhenMunicipal Government, the former major shareholder – Shenzhen Construction Investment Holding Companywith two assets management companies merged, and the Shenzhen Investment Holding Co., Ltd formed, whichcauses the Company's equity to change. By the State-owned Assets Supervision and Administration Commissionof the state council, and quasi-exempt obligations tender offer as approved by China Security RegulatoryCommittee with document No. (2005)116, this issue of consolidated has been authorized and the change inregistration had been completed on 15 February 2006. At the end of the reporting period, Shenzhen InvestmentHolding Limited holds 578,595.836 shares of the Company (57.19% of the total share capital). The shares are alltradable unrestricted shares.The Company has established the corporate governance structure of the general meeting of shareholders, theboard of directors and the board of supervisors. At present, it has human resources, financing plan department,marketing department, engineering management department etc.The Company and its subsidiaries (hereinafter referred to as "the Group") are principally engaged in real estatedevelopment and sales, property leasing and management, retail merchandising and trade, hotel, equipmentinstallation and maintenance, construction, interior decoration, etc.These financial statements and notes to the financial statements were approved by the Board of Directors of theGroup at the 74
th
Board meeting dated on 25 August 2022.For details about the scope of consolidated statements, please refer to Note IX “interests in other entities”.Refer to Note VIII and IX for changes in consolidation scope in current period.IV. The Basis of Preparation of Financial Statements
1. Basis of preparation
The financial statements are prepared in accordance with the Accounting Standards for Business Enterprises andcorresponding application guidance, interpretations and other related provisions issued by the Ministry ofFinance (collectively, " Accounting Standards for Business Enterprises "). In addition, the Group also disclosesrelevant financial information in accordance with the China Securities Regulatory Commission's "Information
Disclosure and Reporting Rules for Companies that Public Issued Securities" No. 15 - General Provisions onFinancial Reporting (revised in 2014).These financial statements are presented on going concern basis.The Group adopts the accrual basis of accounting. Except for certain financial instruments, the financialstatements are prepared under the historical cost convention. In the event that impairment of assets occurs, aprovision for impairment is made accordingly in accordance with the relevant regulations.2.Going concernThese financial statements are presented on going concern basis.V. Significant accounting policies and accounting estimatesReminders on specific accounting policies and accounting estimates:
The company take its own operation and production characteristics into consideration to determine the revenuerecognition policy. Please refer to Note V.39 “Revenue” for specific accounting policy.
1. Statement of compliance with the Accounting Standards for Business EnterprisesThe financial statements have been prepared in compliance with the Accounting Standards for BusinessEnterprises to truly and completely present the Group’s and the Company’s financial position as at 30 June 2022and the Group’s and the Company’s operating results and cash flows for the half-year ended 30 June 2022.
2. Accounting period
The accounting period of the Group is from 1 January to 31 December.
3. Operating cycle
The Group's operating cycle is 12 months.
4. Functional currency
The Group and domestic subsidiaries (including Hong Kong) use Chinese Yuan (“CNY”) as their functionalcurrency. Offshore subsidiaries, Great Wall Real Estate Co. LTD, determine American dollar as their functionalcurrency according to the primary economic environment where they operate. The financial statements of theGroup have been prepared in CNY.
5. Accounting treatments for business combinations involving enterprises under common control andbusiness combinations not involving enterprises under common control
(1)Business combinations involving enterprises under common control
For a business combination involving enterprises under common control, the assets acquired and liabilitiesassumed are measured based on their carrying amounts in the consolidated financial statements of theultimate controlling party at the combination date, except for adjustments due to different accounting policies.The difference between the carrying amount of the net assets acquired and the consideration paid for thecombination is adjusted against share premium in the capital reserve, with any excess adjusted againstretained earnings.Business combination involving enterprises under common control through step by step multiple transactions.In individual financial statements, the share of the net assets of the consolidated party in the book value of theconsolidated financial statements of the ultimate controlling party of the net assets of the consolidated partyon the consolidation date, calculated by the shareholding ratio on the consolidation date, shall be taken as theinitial investment cost of the investment; the difference between the initial investment cost and the sum of thebook value of the investment held before the merger plus the book value of the newly consideration paid shallbe adjusted for the capital reserve. If the capital reserve is insufficient to be written down, the retainedearnings shall be adjusted.In the consolidated financial statement, the assets and liabilities of the consolidated party shall be measuredaccording to the book value of the consolidated financial statement of the ultimate controlling party on themerger date, except for the adjustment due to different accounting policies; the balance between the bookvalue of the investment held before the merger and the book value of the newly consideration paid and thebook value of the net assets obtained during the merger shall be adjusted for capital reserves. If the capitalreserves are insufficient to be written down, the retained earnings shall be adjusted. For long-term equityinvestment held by the merging party prior to acquiring control of the merged party, the relevant profit andloss, other comprehensive income and other changes in owners' equity which have been recognized by themerging party from later of the date on which the original equity was acquired and the date on which themerging party and the merged party are ultimately under the control of the same party to the merging date,shall offset the beginning retained earnings or profits and losses of the current period.
(2)Business combinations involving enterprises not under common control
For business combinations involving enterprises not under common control, the consideration costs includeacquisition-date fair value of assets transferred, liabilities incurred or assumed and equity securities issued bythe acquirer in exchange for control of the acquiree. At the acquisition date, the acquired assets, liabilities andcontingent liabilities of the acquiree are measured at their fair value. The acquiree’s identifiable asset,liabilities and contingent liabilities, are recognised at their acquisition-date fair value.Where the combination cost exceeds the acquirer’s interest in the fair value of the acquiree’s identifiable netassets, the difference is recognised as goodwill, and subsequently measured on the basis of its cost lessaccumulated impairment provisions. Where the combination cost is less than the acquirer’s interest in the fairvalue of the acquiree’s identifiable net assets, the difference is recognised in profit or loss for the currentperiod after reassessment.Business combination involving enterprises not under common control through step by step multipletransactions.In individual financial statements, the sum of the book value of the equity investment held by the purchaserbefore the purchase date and the cost of the newly added investment on the purchase date is taken as theinitial investment cost of the investment. If other comprehensive income of equity investment held before thepurchase date is recognized by using the equity method, such other comprehensive income will not be treatedon the purchase date, and the investment will be treated on the same basis as the direct disposal of relevantassets or liabilities by the invested entity. The owners' equity recognized as a result of changes in owners'equity other than net profit and loss, other comprehensive income and profit distribution of the investee shall
be transferred to the current profit and loss during the disposal period at the time of disposal of theinvestment. If the equity investment held before the purchase date is measured at fair value, the accumulatedchange in fair value originally recorded in other comprehensive income is transferred to the profit and loss ofthe current period when it is calculated by the cost method.In the consolidated financial statement, the consolidated cost is the sum of the consideration paid on thepurchase date and the fair value on the purchase date of the equity held by the Purchaser prior to thepurchase date. For the equity held by the Purchaser before the purchase date, it shall be re-measuredaccording to the fair value of the equity on the purchase date, and the difference between the fair value andthe book value shall be recorded into the current income; The equity held by the Purchaser before thepurchase date involves other comprehensive income, and other changes in owners' equity turn into currentincome on the purchase date, except for other comprehensive income generated by changes in net liabilitiesor net assets of the remeasured income plan of the investee.
(3)Transaction costs for business combination
The overhead for the business combination, including the expenses for audit, legal services, valuation advisory,and other administrative expenses, are recorded in profit or loss for the current period when incurred. Thetransaction costs of equity or debt securities issued as the considerations of business combination are includedin the initial recognition amount of the equity or debt securities.
6. Consolidated financial statements
(1)Scope of consolidated financial statements
The scope of consolidated financial statements is based on control. Control exists when the Group has powerover the investee; exposure, or rights to variable returns from its involvement with the investee and has theability to affect its returns through its power over the investee. A subsidiary is an entity that is controlled bythe Group (including enterprise, a portion of an investee as a deemed separate component, and structuredentity controlled by the enterprise).
(2) Basis of preparation of consolidated financial statements
The consolidated financial statements are prepared by the Group based on the financial statements of theGroup and its subsidiaries and other relevant information. When preparing consolidated financial statements,the accounting policies and accounting periods of the subsidiaries should be consistent with those establishedby the Group, and all significant intra-group balances and transactions are eliminated.Where a subsidiary or business was acquired during the reporting period, through a business combinationinvolving enterprises under common control, the financial statements of the subsidiary or business areincluded in the consolidated financial statements as if the combination had occurred at the date that theultimate controlling party first obtained control.Where a subsidiary or business was acquired during the reporting period, through a business combinationinvolving enterprises not under common control, the identifiable assets and liabilities of the acquiredsubsidiaries or business are included in the scope of consolidation from the date that control commences.
The portion of a subsidiary’s equity that is not attributable to the parent is treated as non-controlling interestsand presented separately in the consolidated balance sheet within shareholders’ equity. The portion of netprofit or loss of subsidiaries for the period attributable to non-controlling interests is presented separately inthe consolidated income statement below the “net profit” line item. When the amount of loss for the currentperiod attributable to the non-controlling shareholders of a subsidiary exceeds the non-controllingshareholders’ share of the opening owners’ equity of the subsidiary, the excess is still allocated against thenon-controlling interests.
(3)Changes in non-controlling interests
Where the Group acquires a non-controlling interest from a subsidiary’s non-controlling shareholders ordisposes of a portion of an interest in a subsidiary without a change in control, the transaction is treated asequity transaction, and the book value of shareholder’s equity attributed to the Group and to the non-controlling interest is adjusted to reflect the change in the Group’s interest in the subsidiaries. The differencebetween the proportion interests of the subsidiary’s net assets being acquired or disposed and the amount ofthe consideration paid or received is adjusted to the capital reserve in the consolidated balance sheet, withany excess adjusted to retained earnings.
(4)Disposal of subsidiaries
When the Group loses control over a subsidiary because of disposing part of equity investment or otherreasons, the remaining part of the equity investment is re-measured at fair value at the date when the controlis lost. A gain or loss is recognised in the current period and is calculated by the aggregate of considerationreceived in disposal and the fair value of remaining part of the equity investment deducting the share of netassets in proportion to previous shareholding percentage in the former subsidiary since acquisition date andthe goodwill.Other comprehensive income related to the former subsidiary is transferred to profit or loss when the controlis lost, except for the comprehensive income arising from the movement of net liabilities or assets in theformer subsidiary’s re-measurement of defined benefit plan.
7. Joint arrangement classification and accounting treatment for joint operationA joint arrangement is an arrangement of which two or more parties have joint control. The Group classifiesjoint arrangements into joint operations and joint ventures.
(1)Joint operations
A joint operation is a joint arrangement whereby the joint operators have rights to the assets, and obligationsfor the liabilities, relating to the arrangement.The Group recognizes the following items relating to its interest in a joint operation, and account for them inaccordance with relevant accounting standards:
A. its solely-held assets, and its share of any assets held jointly;B. its solely-assumed liabilities, and its share of any liabilities assumed jointly;C. its revenue from the sale of its share of the output arising from the joint operation;
D. its share of the revenue from the sale of the output by the joint operation; andE. its solely-incurred expenses, and its share of any expenses incurred jointly.
(2)Joint ventures
A joint venture is a joint arrangement whereby the joint venturers have rights to the net assets of thearrangement.The Group adopts equity method under long-term equity investment in accounting for its investment in jointventure.
8. Cash and cash equivalents
Cash comprises cash in hand and deposits that can be readily withdrawn on demand. Cash equivalents includeshort-term, highly liquid investments that are readily convertible to known amounts of cash and are subject toan insignificant risk of change in value.
9. Foreign currency transactions and translation of foreign currency financial statements
(1)Foreign currency transactions
Foreign currency transactions are translated to the functional currency of the Group at the spot exchange rateson the dates of the transactions.Monetary items denominated in foreign currencies are translated to Renminbi at the spot exchange rate at thebalance sheet date. The resulting exchange differences between the spot exchange rate on balance sheet dateand the spot exchange rate on initial recognition or on the previous balance sheet date are recognised in profitor loss. Non-monetary items that are measured at historical cost in foreign currencies are translated to Renminbiusing the exchange rate at the transaction date. Non-monetary items that are measured at fair value in foreigncurrencies are translated using the exchange rate at the date the fair value is determined. The resulting exchangedifferences are recognised in profit or loss.
(2)Translation of foreign currency financial statements
When translating the foreign currency financial statements of overseas subsidiaries, assets and liabilities offoreign operation are translated to Renminbi at the spot exchange rate at the balance sheet date. Equity items,excluding “retained earnings”, are translated to Renminbi at the spot exchange rates at the transaction dates.Income and expenses of foreign operation are translated to Renminbi at the spot exchange rates at thetransaction dates.Cash flow statement of foreign operation is translated to Renminbi at the spot exchange rates at the cash flowoccurence dates. Effect of foreign exchange rate changes on cash and cash equivalents is presented separatelyas “Effect of foreign exchange rate changes on cash and cash equivalents” in the cash flow statement.The resulting translation differences are recognised in other comprehensive income in shareholders’ equity ofbalance sheet.
The translation differences accumulated in shareholders’ equity with respect to a foreign operation aretransferred to profit or loss in the period when the foreign operation is disposed.
10. Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one enterprise and a financialliability or an equity instrument of another enterprise.
(1)Recognition and derecognition of financial instruments
A financial asset or a financial liability is recognized when the Group becomes a party to the contractualprovisions of a financial instrument.If one of the following criteria is met, a financial asset is derecognised:
①the contractual rights to the cash flows from the financial asset expire; or②The financial asset was transferred, and the transfer qualifies for derecognition in accordance withcriteria set out below in “Transfer of Financial Assets”.A financial liability (or part of it) is derecognized when its contractual obligation (or part of it) is discharged orcancelled or expires. If the Group (as a debtor) makes an agreement with the creditor to replace the currentfinancial liability with assuming a new financial liability, and contractual provisions are different in substance,the current financial liability is derecognized and a new financial liability is recognized.If the financial assets are traded regularly, the financial assets are recognized and derecognized at thetransaction date.
(2)Classification and measurement of financial assets
The Group classifies financial assets as subsequently measured at amortized cost, fair value through othercomprehensive income or fair value through profit or loss at initial recognition on the basis of both the entity’sbusiness model for managing the financial assets and the contractual cash flow characteristics of the financialasset.Financial assets measured at amortized costThe Group classifies the financial assets that meet the following conditions and are not designated asmeasured at fair value through profit or loss as financial assets measured at amortized cost:
? The Group's business model of managing the financial assets is to collect contractual cash flows asthe target;? The contractual terms of the financial asset give rise on specified dates to cash flows that are solelypayments of principal and interest on the principal amount outstanding.After the initial recognition, the effective interest rate method is adopted to measure the amortized cost ofsuch financial assets. Gains or losses arising from financial assets that are measured at amortized cost and arenot part of any hedging relationship shall be recorded in the current profit or loss when the recognition isterminated, amortized according to the effective interest method or the impairment is recognized.
Financial assets measured at fair value through other comprehensive incomeThe Group classifies the financial assets that simultaneously meet the following conditions and are notspecified as measured at fair value through profit or loss as financial assets measured at fair value throughother comprehensive income:
? The Group's business model of managing the financial asset aims at both collecting the contract cashflow and selling the financial asset.? The contractual terms of the financial asset give rise on specified dates to cash flows that are solelypayments of principal and interest on the principal amount outstanding.After the initial recognition, this type of financial assets are subsequently measured at fair value. The interest,impairment loss or gain and exchange loss or gain calculated using the effective interest rate method areincluded in the current profit or loss, while other gains or losses are included in other comprehensive income.When derecognized, the accumulated gains or losses previously recorded in other comprehensive income shallbe transferred out from other comprehensive income and recorded in the current profit or loss.Financial assets measured at fair value through profit or lossIn addition to the above financial assets measured at amortized cost and measured at fair value through othercomprehensive income, the Group classifies all other financial assets as financial assets measured at fair valuethrough profit or loss. At the time of initial recognition, in order to eliminate or significantly reduce accountingmismatches, the Group irrevocably designates some financial assets that should have been measured atamortized cost or measured at fair value through other comprehensive income as financial assets measured atfair value through profit or loss.After the initial recognition, this kind of financial asset is subsequently measured at its fair value, and the gainsor losses (including interest and dividend income) generated are recorded into the current profit or loss, unlessthe financial asset is part of the hedging relationship.However, for non-trading equity instrument investment, the Group irrevocably designates it as a financial assetmeasured at fair value through other comprehensive income at the time of initial recognition. The designationis made on a single investment basis and the relevant investments meet the definition of an equity instrumentfrom issuer's perspective.After the initial recognition, this kind of financial assets are subsequently measured at fair value. Satisfieddividend income is included in the profit or loss, other gains or losses and changes in fair value are included inother comprehensive income. When derecognized, the accumulated gains or losses previously recorded inother comprehensive income are transferred out and recorded in retained earnings.The business model of managing financial assets refers to how the group manages financial assets to generatecash flows. The business model determines whether the cash flow from the financial assets undermanagement of the Group is derived from the receipt of contractual cash flows, the sale of financial assets or acombination of both. The Group determines its business model for managing financial assets on the basis ofobjective facts and the specific business objectives for the management of financial assets determined by keymanagement personnel.The Group assesses the contractual cash flow characteristics of financial assets to determine whether thecontractual cash flows generated by the relevant financial assets on specified dates are solely payments ofprincipal and interest on the principal amount outstanding. Principal refers to the fair value of financial assetsat initial recognition. Interest includes consideration for the time value of money, the credit risk associatedwith the amount of principal outstanding over a given period, and other basic lending risks and costs, as well
as a profit margin. In addition, the Group assesses contractual terms that may cause a change in the timedistribution or amount of the contractual cash flows of financial assets to determine whether they meet therequirements of the above contractual cash flow characteristics.Only when the Group changes the business model of managing financial assets, all affected related financialassets shall be reclassified on the first day of the first reporting period after the change of the business model,otherwise the financial assets shall not be reclassified after the initial recognition.Financial assets are measured at fair value at the time of initial recognition. For financial assets measured atfair value through profit or loss, relevant transaction costs are directly recorded into current profit or loss; forother classes of financial assets, the relevant transaction costs are included in the initial recognition amount.For accounts receivable arising from the sale of products or provision of services, which do not contain or donot take into account the material financing component, the Group is entitled to collect the considerationamount as expected as the initial recognition amount.
(3)Classification and measurement of financial liabilities
At the time of initial recognition, the financial liabilities of the Group are classified as: financial liabilitiesmeasured at fair value through current profit or loss, and financial liabilities measured at amortized cost. Forfinancial liabilities that are not classified as measured at fair value through profit or loss, relevant transactioncosts are included in their initial recognized amounts.Financial liabilities measured at fair value through profit or lossFinancial liabilities measured at fair value through profit or loss include trading financial liabilities and financialliabilities designated at the time of initial recognition as measured at fair value through profit or loss. For suchfinancial liabilities, the subsequent measurement shall be made according to the fair value, and the gains orlosses caused by changes in the fair value as well as the dividends and interest expenses related to suchfinancial liabilities shall be recorded into current profit or loss.Financial liabilities measured at amortized costFor other financial liabilities, the effective interest rate method shall be adopted, and the subsequentmeasurement shall be made at the amortized cost, and the gains or losses arising from derecognition oramortization shall be recorded into current profit or loss.The distinction between financial liabilities and equity instrumentsFinancial liabilities refer to liabilities that meet one of the following conditions:
① A contractual obligation to deliver cash or other financial assets to other parties.
② a contractual obligation to exchange financial assets or financial liabilities with another party underpotentially adverse conditions.
③ Non-derivative instrument contracts that will be settled with or available to the firm's own equityinstruments in the future, under which the firm will deliver a variable number of its own equity instruments.
④ a derivative contract in which the firm's own equity instruments are to be settled or used in the future,except for a derivative contract in which a fixed number of its own equity instruments are to be exchanged fora fixed amount of cash or other financial assets.
An equity instrument is a contract that certifies ownership of the remaining interest in an enterprise's assetsafter all liabilities have been deducted.If the Group cannot unconditionally avoid fulfilling a contractual obligation by delivering cash or other financialassets, such contractual obligation meets the definition of a financial liability.If a financial instrument is to be settled with or available to the Group's own equity instrument, considerationneeds to be given to whether the Group's own equity instrument used to settle the instrument is to be used asa substitute for cash or other financial assets or to give the holder of the instrument the remaining interest inthe Issuer's assets after deduction of all liabilities. If the former, the instrument is a financial liability of thegroup; If it is the latter, the instrument is an equity instrument of the Group.
(4)Fair value of financial instruments
For the determination of fair value of financial assets and financial liabilities, see Note V. 43.
(5)Impairment of financial assets
On the basis of expected credit losses, the Group conducts impairment accounting treatment for the followingitems and confirms the loss provision:
? Financial assets measured at amortized cost;? Receivables and creditor's rights investments measured at fair value and accounted for in othercomprehensive income;? Contract assets as defined in the Accounting Standards for Business Enterprises No. 14 - Revenue;? Lease receivables;Financial guarantee contract (measured at fair value and its changes included in the current profit and loss,except the financial asset transfer does not meet the conditions for termination of recognition or continues toinvolve the transferred financial asset).Measurement of expected credit lossesThe term "expected credit loss" refers to the weighted average of the credit loss of a financial instrumentweighted by the risk of default. Credit loss refers to the difference between all contractual cash flowsreceivable under the contract and all cash flows expected to be collected by the Group discounted at theoriginal effective interest rate, that is, the present value of all cash shortages.The Group calculates the probabilistic weighted amount of the present value of the difference between thecash flows receivable under the Contract and the cash flows expected to be received and recognizes theexpected credit loss, taking into account reasonable and evidential information concerning past events, currentconditions and Itemions of future economic conditions, and weighting the risk of default.he Group measures the expected credit losses of financial instruments at different stages. If the credit risk ofthe financial instrument has not increased significantly since the initial recognition, the Group shall measurethe loss provision in accordance with the expected credit loss in the next 12 months in the first stage;If thecredit risk of a financial instrument has increased significantly since the initial recognition but no creditimpairment has occurred, it is in the second stage, and the Group measures the loss provision according to theexpected credit loss of the entire life period of the instrument; If credit impairment has occurred to a financial
instrument since its initial recognition, it is in the third stage, and the Group shall measure the loss provisionaccording to the expected credit loss of the entire life period of the instrument.For financial instruments with low credit risk at the balance sheet date, the Group assumes that the credit riskhas not increased significantly since the initial recognition, and measures the loss provision in accordance withthe expected credit loss for the next 12 months.The term "expected credit loss over the entire expected life of a financial instrument" refers to the expectedcredit loss resulting from all possible events of default during the entire expected life of a financial instrument.The expected credit loss within the next 12 months refers to the expected credit loss caused by the defaultevent of the financial instrument that may occur within 12 months after the date of the balance sheet (or theexpected duration of the financial instrument if the expected duration of the financial instrument is less than12 months) and is part of the expected credit loss over the entire maturity period.When measuring expected credit losses, the Group shall take into account the longest contract period(including the option to renew the contract) for which the enterprise is exposed to credit risk.The Group calculates interest income on the basis of the book balance before impairment provisions and theeffective interest rate for financial instruments in stage I and stage II and with lower credit risk. For financialinstruments in the third stage, the interest income is calculated on the basis of the amortized cost of the bookbalance less the impairment provision and the effective interest rate.For notes receivable, accounts receivable and contract assets, regardless of whether there is a materialfinancing component, the Group always measures its loss provision in accordance with the amount equivalentto the expected credit loss within the whole duration period.When a single financial asset cannot assess the information of expected credit loss at a reasonable cost, theGroup divides the notes receivable and accounts receivable into portfolios according to the credit riskcharacteristics, calculates the expected credit loss on the basis of the portfolios, and determines the portfoliosbased on the following:
A. Notes receivable? Notes receivable portfolio 1: banker acceptance notes? Notes receivable portfolio 2: commercial acceptance notesB. Receivables
? Accounts receivable portfolio 1: related parties receivable? Accounts Receivable Portfolio 2: Receivable from property sales? Accounts receivable portfolio 3: receivable from other customersC. Contract assets? Contract Portfolio 1: Product Sales? Contract Portfolio 2: Works Construction
For the notes receivable and contract assets divided into portfolios, the Group calculates the expected creditloss through default risk exposure and the expected credit loss rate over the entire duration by referring to thehistorical credit loss experience, combining the current situation and the forecast of the future economicsituation.For the receivables divided into portfolios, the Group refers to the historical credit loss experience andcombines the current situation with the forecast of the future economic situation to compile a comparisontable between the age of receivables/overdue days and the expected credit loss rate of the entire durationperiod to calculate the expected credit loss.Other receivablesThe Group divides other receivables into several portfolios according to the credit risk characteristics, andcalculates the expected credit loss on the basis of the portfolio. The basis for determining the portfolio is asfollows:
? Other Receivables Portfolio 1: Receivables from government agencies? Other Receivables Portfolio 2: Other receivables from employee’s petty cash? Other receivables portfolio 3: Other receivables from the collecting and paying on behalf? Other receivables portfolio 4: Other receivables from other customers? Other receivables portfolio 5: Receivables from related partiesFor other receivables divided into portfolios, the Group calculates the expected credit loss by default riskexposure and the expected credit loss rate over the next 12 months or the entire duration.Debt investment and Other debt investmentFor debt investment and other debt investment, the Group calculates the expected credit loss based on thedefault risk exposure and the expected credit loss rate within the next 12 months or the entire durationaccording to the nature of the investment and the various types of counterparties and risk exposures.An assessment of a significant increase in credit riskBy comparing the risk of default of financial instruments on the balance sheet date with the risk of default onthe initial recognition date, the Group determines the relative change of default risk within the expectedduration of financial instruments, so as to evaluate whether the credit risk of financial instruments hassignificantly increased since the initial recognition.In determining whether credit risk has increased significantly since the initial recognition, the Group considersreasonable and informed information, including forward-looking information that can be obtained withoutunnecessary additional cost or effort. Information considered by the Group includes:
? The debtor fails to pay the principal and interest as due under the contract;? A material deterioration, if any, of the external or internal credit rating of the financial instrumentthat has occurred or is expected;? A serious deterioration of the debtor's business results occurred or is expected;
? A change in the existing or anticipated technological, market, economic or legal environment whichwill have a material adverse effect on the debtor's ability to repay the Group.? According to the nature of financial instruments, the Group evaluates whether credit risk increasessignificantly on the basis of individual financial instruments or a combination of financial instruments. Whenassessing on the basis of a portfolio of financial instruments, the Group may classify financial instrumentsbased on common credit risk characteristics, such as overdue information and credit risk rating.If overdue for more than 30 days, the Group determines that the credit risk of the financial instrument hasincreased significantly.The Group believes that the financial assets are in default under the following circumstances:
? The Borrower is unlikely to pay its arrears to the Group in full and this assessment does not take intoaccount any recourse actions taken by the Group, such as liquidating the collateral (if held); or? Financial assets are more than 90 days overdue.A financial asset whose credit has been impairedOn the balance sheet date, the Group evaluates whether credit impairment has occurred in financial assetsmeasured at amortized cost and debt investments measured at fair value and whose changes are included inother comprehensive income. When one or more events which have an adverse effect on the expected futurecash flow of a financial asset occur, the financial asset becomes a financial asset with credit impairment.Evidence of credit impairment of financial assets includes the following observable information:
? Major financial difficulties occur to the issuer or the debtor;? A breach of contract by the debtor, such as a default or late payment of interest or principal;? The Group, for economic or contractual considerations relating to the debtor's financial difficulties,gives concessions that the debtor would not have made under any other circumstances;? The debtor is likely to go bankrupt or undergo other financial restructuring;? The financial difficulties of the issuer or debtor result in the disappearance of an active market forthe financial asset.Presentation of expected credit loss provisionsIn order to reflect the change of the credit risk of financial instruments since the initial recognition, the Groupre-measures the expected credit loss on each balance sheet date, and the increase or rolleback amount of theloss provision thus formed shall be recorded into the current profit and loss as an impairment loss or profit. Fora financial asset measured at amortized cost, the loss provision shall offset the carrying value of the financialasset as stated in the balance sheet; For the debt investment measured at fair value and its changes includedin other comprehensive income, the Group recognizes its loss provision in other comprehensive income anddoes not deduct the book value of the financial asset.Written-offIf the Group no longer reasonably expects that the contractual cash flow of a financial asset can be recoveredin whole or in part, the carrying balance of the financial asset shall be directly written down. Such writedowns
constitute termination recognition of the relevant financial assets. This usually occurs when the Groupdetermines that the debtor does not have assets or sources of income that generate sufficient cash flow torepay the amount to be written down. However, in accordance with the Group's procedures for recoveringamounts due, the financial assets that have been written down may still be affected by the execution activities.If a financial asset that has been written down is recovered later, it shall be carried back as an impairment lossand recorded in the profit and loss of the current period.
(6)Transfer of financial assets
Transfer of financial assets is the transfer or delivery of financial assets to another party (the transferee) otherthan the issuer of financial assets.A financial asset is derecognised if the Group transfers substantially all the risks and rewards of ownership ofthe financial asset to the transferee. A financial asset is not derecognised if the Group retains substantially allthe risks and rewards of ownership of the financial asset to the transferee.The Group neither transfers nor retains substantially all the risks and rewards of ownership of the financialasset, and the accounting treatment is shown as following: if the Group has forgone control over the financialasset, the financial assets is derecognized, and new assets and liabilities are recognized. If the Group retainscontrol over the financial asset, the financial asset is recognised to the extent of its continuing involvement inthe transferred financial asset, and an associated liability is recognised.
(7)Offset of financial assets and financial liabilities
Where the Group has the legal right to set off the recognized financial asset and financial liability, and iscurrently able to enforce such legal right, and the Group plans to settle the financial asset on a net basis orsimultaneously realize the financial asset and pay off the financial liability, the financial asset and financialliability shall be shown in the balance sheet with the offset amount. In addition, financial assets and financialliabilities shall be separately presented in the balance sheet and shall not be set off against each other.
11. Notes Receivable
Please refer to Notes V.10 Financial Instrument (5) Impairment of Financial Asset.
12. Accounts Receivable
Please refer to Notes V.10 Financial Instrument (5) Impairment of Financial Asset.
13. Accounts receivable financing
14. Other receivables
Determination method and accounting treatment method of expected credit loss of other receivablesPlease refer to Note V 10. financial instruments (5) Impairment of financial assets.
15. Inventories
(1)Classification
The Group's inventory is classified by real estate development and non-real estate development. Inventory ismainly real estate development projects, including development costs and development products. Developmentcost include the development costs of development products to be developed and development products underconstruction. Development products include completed development products and development productsintended for sell but temporarily leased. Non-real estate development projects include raw materials, finishedgoods and engineering construction.
(2)Mesurement method of cost of inventories
The group’s inventories are measured at actual cost when acquired. The actual cost of developing a productincludes land transfer fee, infrastructure expenditure, construction and installation project expenditure,borrowing expenses incurred before the completion of the development project and other related expenses inthe development process.。When a product is developed and shipped, the actual cost is determined by specificidentification method.Raw materials and finished goods are calculated using weighted average method.
(3)Basis for determining the net realisable value and method for provision for obsolete inventoriesNet realisable value is the estimated selling price in the ordinary course of business less the estimated costs ofcompletion and the estimated costs necessary to make the sale and relevant taxes. The net realisable value ismeasured based on the verified evidences and considerations for the purpose of holding inventories and theeffect of post balance sheet events.Any excess of the cost over the net realisable value of of inventories is recognised as a provision for obsoleteinventories, and is recognised in profit or loss. The Group usually recognises provision for decline in value ofinventories by a single inventory item. If the factors caused the value of inventory previously written-downhave disappeared, the provision for decline in value of inventories previously made is reversed.
(4)Inventory count system
The Group maintains a perpetual inventory system
(5)Amortization methods of low-value consumables and packaging materials
Low-value consumables are charged to profit or loss when they are used.
16. Contract assets
17. Contract costs
Contract costs include incremental costs incurred to obtain the contract and contract performance costs.Incremental costs incurred to obtain a contract are costs (such as sales commissions, etc.) that the Groupwould not have incurred without the contract. If the cost is expected to be recovered, the Group will recognizeit as an asset as the contract acquisition cost. Other expenses incurred by the Group for the acquisition of
contracts, other than the incremental costs expected to be recovered, are recorded into the profit and loss ofthe current period when incurred.If the cost incurred for the performance of the contract does not fall within the scope of accounting standardsfor inventories and other enterprises and meets the following conditions at the same time, the Group willrecognize it as an asset as the contract performance cost:
① The costs are directly related to a current or prospective contract and include direct labor, direct materials,overhead (or similar), costs that are expressly borne by the customer and other costs incurred solely inconnection with the contract;
② This cost increases the Group's future resources for fulfilling its performance obligations;
③ The cost is expected to be recovered.
Assets with contract acquisition cost recognition and assets with contract performance cost recognition(hereinafter referred to as "assets related to contract cost") shall be amortized on the same basis as incomerecognition of goods or services related to such assets and shall be recorded into current profit and loss. If theamortization period does not exceed one year, it will be recorded in the current profit and loss at the time ofoccurrence.When the book value of the assets related to the contract cost is higher than the difference between thefollowing two items, the Group shall make provision for impairment of the excess part and recognize it asimpairment loss of the assets:
① the remaining consideration that the Group is expected to obtain as a result of the transfer of the goods orservices related to the asset;
② Estimate the costs to be incurred for the transfer of the relevant goods or services.The contract performance cost recognized as an asset shall be shown in the "Inventory" item with anamortization period of no more than one year or one normal operating cycle at the time of initial recognition,while the amortization period exceeding one year or one normal operating cycle at the time of initialrecognition shall be shown in the item of "Other Non-current Assets".The contract acquisition cost recognized as an asset shall be shown in the item of "Other Current Assets" withan amortization period of less than one year or one normal operating cycle at the time of initial recognition,and shall be shown in the item of "Other Non-current Assets" with an amortization period of more than oneyear or one normal operating cycle at the time of initial recognition.
18. Assets held for sale
The Group classifies a non-current asset or disposal group as held for sale when the carrying amount of thenon-current asset or disposal group will be recovered through a sale transaction (including an exchangetransaction of non-monetary assets with commercial substance) rather than through continuing use.A non-current asset or disposal group is classified as held for sale when all the following criteria are met:
According to the customary practices of selling such asset or disposal group in similar transactions, the non-current asset or disposal group is available for immediate sale in its present condition; The sale is highlyprobable to occur, that is, the Group has made a resolution on a sale plan and entered into a legally bindingpurchase agreement with other parties. The sale is expected to be completed within one year.
The Group that is committed to a sale plan involving loss of control of a subsidiary classifies all the investmentin that subsidiary as held for sale in its separate financial statements, and classifies all the assets and liabilitiesof that subsidiary as held for sale in its consolidated financial statements, when the classification criteria forheld for sale are met, regardless of whether the Group retains a non-controlling interest in its formersubsidiary after the sale.Non-current assets or disposal groups held for sale are initially and subsequently measured at the lower ofcarrying amount and fair value less costs to sell. Any excess of the carrying amount over the fair value lesscosts to sell is recognised as an impairment loss in profit or loss. The impairment loss recognised for a disposalgroup firstly reduces the carrying amount of goodwill allocated to the disposal group, and then reduces thecarrying amount of other non-current assets pro rata on the basis of the carrying amount of each non-currentasset in the disposal group.The Group recognises a gain for any subsequent increase in fair value less costs to sell of an asset, but not inexcess of the cumulative impairment loss that has been recognised after classified as held for sale. Thereduced carrying amount of goodwill is not recovered.The Group does not depreciate (or amortise) a non-current asset while it is classified as held for sale or while itis part of a disposal group classified as held for sale. Interest and other expenses attributable to the liabilitiesof a disposal group classified as held for sale continue to be recognised.If an investment or a part of investment in an associate or a joint venture is classified as held for sale, equitymethod is not used for the part classified as held for sale, while equity method is used for the rest part (thepart not classified as held for sale) continuely. When the Group does not have material impact on an associateor a joint venture due to the sale transaction, it stops using equity method.
19. Debt investment
20. Other debt investments
21. Long-term receivables
22. Long-term equity investments
Long-term equity investments include equity investments in subsidiaries and equity investments in jointventures and associates. An associate is an enterprise over which the Group has significant influence.
(1)Determination of initial investment cost
The initial cost of a long-term equity investment acquired through a business combination involvingenterprises under common control is the Group’s share of the carrying amount of the subsidiary’s equity in theconsolidated financial statements of the ultimate controlling party at the combination date. For a long-termequity investment obtained through a business combination not involving enterprises under common control,the initial cost is the combination cost.A long-term equity investment acquired other than through a business combination: A long-term equityinvestment acquired other than through a business combination is initially recognised at the amount of cashpaid if the Group acquires the investment by cash, or at the fair value of the equity securities issued if aninvestment is acquired by issuing equity securities.
(2)Subsequent measurement and recognition of profit or loss
Long-term equity investments in subsidiaries are accounted for using the cost method. An investment in a jointventure or an associate is accounted for using the equity method for subsequent measurement.For a long-term equity investment which is accounted for using the cost method, Except for cash dividends orprofit distributions declared but not yet distributed that have been included in the price or consideration paidin obtaining the investments, the Group recognises its share of the cash dividends or profit distributionsdeclared by the investee as investment income for the current period.For a long-term equity investment which is accounted for using the equity method, where the initial cost of along-term equity investment exceeds the Group’s interest in the fair value of the investee’s identifiable netassets at the date of acquisition, the investment is initially recognised at cost. Where the initial investment costis less than the Group’s interest in the fair value of the investee’s identifiable net assets at the date ofacquisition, the investment is initially recognised at the investor’s share of the fair value of the investee’sidentifiable net assets, and the difference is recognised in profit or loss.Under the equity method, the Group recognises its share of the investee’s profit or loss and othercomprehensive income as investment income or losses and other comprehensive income respectively, andadjusts the carrying amount of the investment accordingly. Once the investee declares any cash dividends orprofit distributions, the carrying amount of the investment is reduced by the amount attributable to the Group.Changes in the Group’s share of the investee’s owners’ equity, other than those arising from the investee’s netprofit or loss, other comprehensive income or profit distribution (referred to as “other changes in owners’equity”), is recognised directly in the Group’s equity, and the carrying amount of the investment is adjustedaccordingly. In calculating its share of the investee’s net profits or losses, other comprehensive income andother changes in owners’ equity, the Group recognises investment income and other comprehensive incomeafter making appropriate adjustments to align the accounting policies or accounting periods with those of theGroup based on the fair value of the investee’s identifiable net assets at the date of acquisition.When the Group becomes capable of exercising joint control or significant influence (but not control) over aninvestee due to additional investment or other reasons, the Group uses the fair value of the previously-heldequity investment, together with additional investment cost, as the initial investment cost under the equitymethod. The difference between the fair value and carrying amount of the previously-held equity investment,and the accumulated changes in fair value included in other comprehensive income, shall be transferred toprofit or loss for the current period upon commencement of the equity method.When the Group can no longer exercise control over an investee due to partial disposal of the equityinvestment or other reasons, and the remaining equity after disposal can exercise joint control of or significantinfluence over an investee, the remaining equity is adjusted as using equity method from acquisition. Whenthe remaining equity can no longer exercise joint control of or significant influence over an investee, theremaining equity investment shall be accounted for using Accounting Standard for Business Enterprises No. 22-Recognition and Measurement of Financial Instruments, and the difference between the fair value and thecarrying amount of the remaining equity investment shall be charged to profit or loss for the current period atthe date of loss of control.When the Group can no longer exercise control over an investee due to new capital injection by other investors,and the Group can exercise joint control of or significant influence over an investee, the Group recognizes itsshare of the investee’s new added net assets using new shareholding percentage. The difference between itsnew share of the investee’s new added net assets and its decreased shareholding percentage of the originalinvestment is recognized in profit or loss. And the Group adjusts to the equity method using the newshareholding percentage as if it uses the equity method since it obtains the investment.
Unrealised profits and losses resulting from transactions between the Group and its associates or jointventures are eliminated to the extent of the Group’s interest in the associates or joint ventures. Unrealisedlosses resulting from transactions between the Group and its associates or joint ventures are eliminated in thesame way as unrealised gains but only to the extent that there is no impairment.
(3)Criteria for determining the existence of joint control or significant influence over an investeeJoint 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. When assessingwhether the Group can exercise joint control over an investee, the Group first considers whether no singleparticipant party is in a position to control the investee’s related activities unilaterally, and then considerswhether strategic decisions relating to the investee’s related activities require the unanimous consent of allparticipant parties that sharing of control. All the parties, or a group of the parties, control the arrangementcollectively when they must act together to direct the relevant activities. When more than one combination ofthe parties can control an arrangement collectively, joint control does not exist. A party that holds onlyprotective rights does not have joint control of the arrangement.Significant influence is the power to participate in the financial and operating policy decisions of an investeebut does not have control or joint control over those policies. When determining whether the Group canexercise significant influence over an investee, the effect of potential voting rights (for example, warrants,share options and convertible bonds) held by the Group or other parties that are currently exercisable orconvertible shall be considered.When the Group, directly or indirectly through subsidiaries, owns 20% of the investee (including 20%) or morebut less than 50% of the voting shares, it has significant influence over the investee unless there is clearevidence to show that in this case the Group cannot participate in the production and business decisions ofthe investee, and cannot form a significant influence. When the Group owns less than 20% of the voting shares,generally it does not have significant influence over the investee, unless there is clear evidence to show that inthis case the Group can participate in the production and business decisions of the investee so as to form asignificant influence.
(4)Method of impairment testing and impairment provision
For investments in subsidiaries, associates and joint ventures, refer to Note V. 31 for the Group’s method ofasset impairment.
23. Investment property
Investment properties are properties held either to earn rental income or for capital appreciation or for both.The Group’s investment properties include leased houses, leased buildings, leased land use rights. In addition,for a vacant building held by the company for operating lease, if the board of directors (or a similar institution)makes a written resolution expressly indicating that it is used for operating lease and the intention of holdingdoes not change in the short term, it is also considered as Investment property.Investment properties are initially measured at acquisition cost, and depreciated or amortized using the samepolicy as that for fixed assets or intangible assets.For the impairment of the investment properties accounted for using the cost model, refer to Note V.31.The balance of the disposal income from the sale, transfer, scrapping or damage of the investment real estateafter deducting its book value and relevant taxes and fees shall be recorded into the current profit and loss.
24. Fixed assets
(1)Recognition of fixed assets
Fixed assets represent the tangible assets held by the Group for use in production of goods, use in supply ofservices, rental or for administrative purposes with useful lives over one accounting year.Fixed assets are only recognised when its related economic benefits are likely to flow to the Group and its costcan be reliably measured.Fixed asset are initially measured at cost.Subsequent expenses related to fixed assets shall be recorded into cost of fixed assets when its relatedeconomic benefits are likely to flow to the Group and its cost can be reliably measured; the cost of daily repairsto fixed assets that do not meet the conditions for subsequent expenditures for capitalization of fixed assets,at the time of occurrence, shall be recorded into the profit or loss of the current period or the cost of therelated assets. For the part that is replaced, its carrying amount is derecognized
(2)Depreciation of fixed assets
The cost of a fixed asset is depreciated using the straight-line method since the state of intended use, unlessthe fixed asset is classified as held for sale. Not considering impairment provision, the estimated useful lives,residual value rates and depreciation rates of each class of fixed assets are as follows:
Class | Depreciation Method | Estimated useful life (years) | Residual value rate % | Depreciation rate % |
Plant and buildings
Plant and buildings | straight-line depreciation | 30 | 5 | 3.17% |
Motor vehicles
Motor vehicles | straight-line depreciation | 6 | 5 | 15.83% |
Electronic equipmentand others
Electronic equipment and others | straight-line depreciation | 5 | 5 | 19.00% |
The cost of a fixed asset is depreciated using the straight-line method since the state of intended use, unlessthe fixed asset is classified as held for sale. Not considering impairment provision, the estimated useful lives,residual value rates and depreciation rates of each class of fixed assets are as table above.For impaired fixed assets, cumulative amount of impairment provision is deducted in determining thedepreciation rate.
(3) Recognition, measurement and depreciation of fixed assets acquired under finance leases
Fixed assets under finance leases are recognised if they meet one or more of the following criteria: ①Theownership of leased assets is transferred to the Company by the end of the lease term. ②The Company hasthe option to purchase the asset at a price that is expected to be sufficiently lower than the fair value at thedate of the option becomes exercisable for it to be reasonably certain, at the inception of the lease, that theoption will be exercised. ③Even if the ownership of assets is not transferred, the lease term covers the majorpart of the useful life of the asset. ④At the inception of lease, the present value of minimum lease paymentsamount to substantially all of the fair value of leased asset. ⑤Leased assets are of a specialized nature thatonly the Company can use them without major modifications.An asset acquired under a finance lease is measured at an amount equal to the lower of its fair value and thepresent value of the minimum lease payments, each determined at the inception of the lease. Long-termpayable is recorded at an amount equal to the sum of all future minimum lease payments. The differencebetween the carrying amount of the leased assets and the minimum lease payments is accounted for asunrecognised finance charges. Initial direct costs attributable to a finance lease incurred during the process oflease negotiation and the signing of the lease agreement, including service charges, attorney's fees, travellingexpenses and stamp duty, that are incurred by the Company are added to the carrying amount of the leasedasset. Unrecognised finance charges are recognised as finance charge for the period using the effective interestmethod over the lease term.Depreciation is accounted for in accordance with the accounting policies of fixed assets. If there is reasonablecertainty that the Company will obtain ownership of a leased asset at the end of the lease term, the leasedasset is depreciated over its estimated useful life. Otherwise, the leased asset is depreciated over the shorterof the lease term and its estimated useful life.
25. Construction in progress
Construction in progress is recognized based on the actual construction cost, including all expendituresincurred for construction Items, capitalised borrowing costs and any other costs directly attributable tobringing the asset to working condition for its intended use.Construction in progress is transferred to fixed asset when it is ready for its intended use.For the impairment of construction in progress, please refer to Note V.31
26. Borrowing costs
(1)Capitalisation criteria
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifyingasset shall be capitalised as part of the cost of that asset. Other borrowing costs are expensed in profit or lossas incurred. The capitalisation of borrowing costs shall commence only when the following criteria are met:
①capital expenditures have been incurred, including expenditures that have resulted in payment of cash,transfer of other assets or the assumption of interest-bearing liabilities;
②borrowing costs have been incurred;③the activities that are necessary to prepare the asset for its intended use or sale have commenced.
(2)Capitalisation period
The capitalisation of borrowing costs ceases when the asset under acquisition or construction becomes readyfor its intended use, the borrowing costs incurred thereafter are recognised in profit or loss for the currentperiod.Capitalisation of borrowing costs is suspended during periods in which the acquisition or construction of afixed asset is interrupted abnormally and the interruption lasts for more than 3 months, until the acquisition orconstruction is resumed.
(3)Capitalisation rate of borrowing costs and calculation basis of capitalised amountFor interest expense actually incurred on specific borrowings, the eligible capitalised amount is the net amountof the borrowing costs after deducting any investment income earned before some or all of the funds are usedfor expenditures on the qualifying asset. To the extent that the Group borrows funds generally and uses themfor the purpose of obtaining a qualifying asset, the Group shall determine the amount of borrowing costseligible for capitalisation by applying a capitalisation rate to the expenditures on that asset, the capitalisationrate shall be the weighted average of the borrowing costs applicable to the borrowings of the Group that areoutstanding during the period, other than borrowings specifically for the purpose of obtaining a qualifyingasset.In the capitalisation period, exchange differences of specific borrowings in foreign currency shall be capitalised;exchange differences of general borrowings in foreign currency is recognised in profit or loss for the currentperiod.
27. Biological assets
28. Oil and gas assets
29. Right-of-use assets
(1) Conditions for the confirmation of the right-of-use assets
The Group's right-of-use assets refer to the Group's right to use the leased assets during the lease term as thelessee.On the beginning date of the lease period, the right-of-use assets shall be initially measured at cost. The costincludes: the initial measurement amount of the lease liability; For the amount of lease payment paid on orbefore the commencement date of the lease term, if there is a lease incentive, the relevant amount of leaseincentive already enjoyed will be deducted; Initial direct expenses incurred by the Group as the lessee; The costswhich the Group, as the Lessee, expects to incur in dismantling and removing the Leased Assets, restoring thepremises on which the Leased Assets are located or restoring the Leased Assets to the state agreed in the LeaseTerms. The Group, as the lessee, shall confirm and measure the costs of demolition and restoration in
accordance with the Accounting Standards for Business Enterprises No. 13 - Contingencies. Subsequentadjustments are made for any remeasurement of lease liabilities.
(2) Depreciation method of the right-of-use assets
The Group uses the straight line method of depreciation. Where the Group, as the lessee, can reasonablydetermine that it obtains the ownership of the leased assets upon expiration of the lease term, depreciation shallbe accrued over the remaining service life of the leased assets. Where it is impossible to reasonably determinethat the ownership of the leased asset can be acquired at the expiration of the lease term, depreciation shall beaccrued in the shorter period between the lease term and the remaining useful life of the leased asset.
(3) See Note V.31 for the impairment test method of the right-of-use assets and the provision for impairment.
30. Intangible assets
(1)Valuation, Useful life and Impairment
Intangible assets include software, land use right, and patent rights etc.Intangible assets are stated at actual cost upon acquisition and the useful economic lives are determined at thepoint of acquisition. When the useful life is finite, amortisation method shall reflect the pattern in which theasset’s economic benefits are expected to be realised. If the pattern cannot be determined reliably, thestraight-line method shall be used. An intangible asset with an indefinite useful life shall not be amortised.The Group shall review the useful life and amortisation method of an intangible asset with a finite useful life atleast at each year end. Changes of useful life and amortisation method shall be accounted for as a change inaccounting estimate.An intangible asset shall be derecognised in profit or loss when it is not expected to generate future economicbenefits.For the impairment of intangible assets, please refer to Note V.31 Impairment of Assets.
(2)Accounting policy for internal research and development expenditure
31. Impairment of assets
The impairment of long-term equity investments in subsidiaries, associates and joint ventures, investmentproperties measured using a cost model, fixed assets, construction in progress, productive biological assetsmeasured using a cost model, intangible assets, goodwill, proven oil and gas mining rights and wells and relatedfacilities, etc. (Excluding inventories, investment property measured using a fair value model, deferred tax assetsand financial assets) is determined as follows:
At each balance sheet date, the Group determines whether there is any indication of impairment. If anyindication exists, the recoverable amount of the asset is estimated. In addition, the Group estimates therecoverable amounts of goodwill, intangible assets with indefinite useful lives and intangible assets not readyfor use at each year-end, irrespective of whether there is any indication of impairment.
The recoverable amount of an asset is the higher of its fair value less costs to sell and its present value ofexpected future cash flows. The recoverable amount is estimated for each individual asset. If it is not possibleto estimate the recoverable amount of each individual asset, the Group determines the recoverable amountfor the asset group to which the asset belongs. An asset group is the smallest identifiable group of assets thatgenerates cash inflows that are largely independent of the cash inflows from other assets or asset groups.An impairment loss is recognised in profit or loss when the recoverable amount of an asset is less than itscarrying amount. A provision for impairment of the asset is recognised accordingly.For goodwill impairment test, the carrying amount of goodwill arising from a business combination is allocatedreasonably to the relevant asset group since the acquisition date. If the carrying amount of goodwill is unableto be allocated to asset group, the carrying amount of goodwill will be allocated to asset portfolio. Asset groupor portfolio of asset group is asset group or portfolio of asset group which can be benefit from synergies of abusiness combination and is not greater than the reportable segment of the Group.In impairment testing, if impairment indication exists in asset group or portfolio of asset group containingallocated goodwill, impairment test is first conducted for asset group or portfolio of asset group that does notcontain goodwill, and corresponding recoverable amount is estimated and any impairment loss is recognized.Then impairment test is conducted for asset group or portfolio of asset group containing goodwill bycomparing its carrying amount and its recoverable amount. If the recoverable amount is less than the carryingamount, impairment loss of goodwill is recognized.Once an impairment loss is recognised, it is not reversed in a subsequent period.
32. Long-term deferred expenses
Long-term deferred expenses are recorded at the actual cost, and amortized using a straight-line methodwithin the benefit period. For long-term deferred expense that cannot bring benefit in future period, theGroup recognized its amortised cost in profit or loss for the current period.
33. Contract liabilities
Contract liabilities refer to the obligations of the company and its subsidiaries to transfer goods or services tocustomers for consideration received or receivable from customers. Contract assets and contract liabilitiesunder the same contract are presented on a net basis.
34. Employee benefits
(1)Scope of employee benefits
Employee benefits refer to all forms of consideration or compensation given by the Group in exchange forservice rendered by employees or for the termination of employment relationship. Employee benefits includeshort-term employee benefits, post-employment benefits, termination benefits and other long-term employeebenefits. Benefits provided to the Group’s spouse, children, dependents, family members of deceasedemployees or other beneficiaries are also part of the employee benefits.According to liquidity, employee benefits are presented as “employee benefits payable” and “long-termemployee benefits payable” on the balance sheet.In the current period, the Group has accrued for the actual wages, bonuses, medical insurance for employees
based on standard rate, work injury insurance and maternity insurance and other social insurance and housingfund incurred and these are recognised as liabilities and corresponding costs in the profit or loss. If theseliabilities are not expected to be fully paid 12 months after the end of the reporting period in which employeerenders the service to the Group, and if the financial impact is significant, these liabilities shall be discountedusing the net present value method.
(2)Post-employment benefits
Post-employment benefit plan includes defined contribution plans and defined benefit plans. Definedcontribution plans are post-employment benefit plans under which an enterprise pays fixed contributions intoa separate fund and will have no future obligations to pay the contributions. Defined benefit plans are post-employment benefit plans other than defined contribution plans.Defined contribution plansDefined contribution plans include primary endowment insurance, unemployment insurance and corporatepension plan, etc.Besides basic pension insurance, the Group establishes corporate pension plans in accordance with the relatedpolicies of corporate pension regulations. Employees can join the pension plan voluntarily. The Group has noother significant commitment of employees’ social security.The Group shall recognise, 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 the profit or loss for thecurrent period or the cost of a relevant asset.Defined benefit plansFor a defined benefit plan, an actuarial valuation is performed by an independent actuary at the annualbalance sheet date to determine the cost of providing benefits using the expected accrued benefit unitmethod. The employee compensation cost caused by the benefit plan of the Group includes the followingcomponents:
① Service cost, including current service cost, past service cost and settlement profit or loss. Including, thecurrent service cost refers to the increase in the present value of the defined benefit plan obligation caused bythe current provision of services by employees; The past service cost refers to the increase or decrease in thepresent value of the defined benefit plan obligations related to the employee services of the previous periodas a result of the modification of the defined benefit plan.
② Set the net interest on the net liabilities or net assets of the benefit plan, including the interest income onthe plan assets, the interest expense on the defined benefit plan obligations and the interest on the impact ofthe asset cap.
③ The changes caused by the remeasurement of the net liabilities or net assets of the benefit plan.Unless other accounting standards require or allow the cost of employee benefits to be included in the cost ofassets, the Group will include items ① and ② above in the current profit and loss; Item ③ is included in othercomprehensive income and will not be turned back to profit and loss in subsequent accounting periods. Whenthe originally defined benefit plan is terminated, the part originally included in other comprehensive incomewithin the scope of equity is carried forward to undistributed profit.
(3)Termination benefits
The Group provides for termination benefits to the employees and shall recognise an employee benefitsliability for termination benefits, with a corresponding charge to the profit or loss for the current period, at theearlier of the following dates: When the Group cannot unilaterally withdraw the offer of the terminationbenefits because of an employment termination plan or a redundancy proposal; or when the Group recognises
the costs or expenses relating to a restructuring that involves the payment of the termination benefits.For employees who implement the internal retirement plan, the economic compensation before the officialretirement date belongs to dismiss welfare. During the normal retirement date when the employees stopproviding services, the salary and social insurance premium to be paid by the employees who retire within theGroup shall be included in the profit and loss of the current period in a lump sum. Economic compensationafter the official retirement date (such as the normal pension) shall be treated as after-service benefits.
(4)Other long-term employee benefits
Other long-term employee benefits provided by the Group to the employees satisfied the conditions forclassifying as a defined contribution plan; those benefits shall be accounted for in accordance with the aboverequirements relating to defined contribution plan. When the benefits satisfied a defined benefit plan, it shallbe accounted for in accordance with the above requirements relating to defined benefit plan, but themovement of net liabilities or assets in re-measurement of defined defined benefit plan shall be recorded inprofit or loss for the current period or cost of relevant assets.
35. Lease liabilities
Except for short-term leases and leases of low-value assets, the Group initially measures lease liabilities at theinception date of the lease term at the present value of unpaid lease payments on that date. The Group usesthe interest rate implicit in the lease as the discount rate to calculate the present value of the lease payments.If the interest rate implicit in the lease cannot be determined, the incremental borrowing rate will be used asthe discount rate.Lease payments refer to the payments made by the Group to the lessor in relation to the right to use theleased asset during the lease term, including: fixed payments and substantive fixed payments, and if there is alease incentive, deduct the amount related to the lease incentive; Variable lease payments that depend on anindex or rate; The exercise price of a call option that the Group is reasonably certain to exercise; If the leaseterm reflects that the Group will exercise the option to terminate the lease, the amount to be paid forexercising the option to terminate the lease; The estimated payables based on the residual value of guaranteesprovided by the Group.Variable lease payments that depend on an index or rate are initially measured based on the index or rate atthe commencement date of the lease term. Variable lease payments that are not included in the measurementof lease liabilities will be included in the current profit and loss when they are actually incurred. After thecommencement date of the lease term, the Group calculates the interest expense of the lease liability in eachperiod of the lease term at a fixed periodic interest rate, and includes it in the current profit and loss or thecost of related assets.After the commencement date of the lease term, the Group will re-measure the lease liabilities and adjust thecorresponding right-of-use assets under the following circumstances. If the book value of the right-of-useassets has been reduced to zero and the lease liabilities still need to be further reduced, the difference will beincluded in the current profit and loss. If the lease term changes or the evaluation result of the purchaseoption changes, the Group will remeasure the lease liability at the present value calculated by changed leasepayments and the revised discount rate; If the payable amount of the guaranteed residual value or the index orratio used to determine lease payments changes, the Group will remeasure the lease liability based on the thepresent value calculated by revised lease payments and original discount rate. If changes in floating interestrates result in changes in lease payments, the Group will recalculate the lease liability using the reviseddiscount rate.
36. Provisions
A provision is recognised for an obligation related to a contingency if all the following conditions are satisfied:
(1) the Group has a present obligation;
(2) it is probable that an outflow of economic benefits will be required to settle the obligation; and
(3) the amount of the obligation can be estimated reliably.
A provision is initially measured at the best estimate of the expenditure required to settle the related presentobligation. Factors pertaining to a contingency such as the risks, uncertainties and time value of money aretaken into account as a whole in reaching the best estimate.Where the effect of the time value of money ismaterial, provisions are determined by discounting the expected future cash flows. The Group reviews thecarrying amount of a provision at the balance sheet date and adjusts the carrying amount to the current bestestimate.If all or part of the expenditure necessary for settling the provision is expected to be compensated by a thirdparty, the amount of compensation is separately recognized as an asset when it is basically certain to bereceived. The recognized compensation amount shall not exceed the carrying amount of the provision.
37. Share-based payment
38. Preferred shares, perpetual bonds and other financial instruments
39. Revenue
(1) General principles
The Group has fulfilled its contractual obligation to recognize revenue when the customer acquires control ofthe relevant goods or services.If the contract contains two or more performance obligations, the Group shall, on the commencement date ofthe contract, allocate the transaction price to each single performance obligation according to the relativeproportion of the individual selling price of the commodity or service committed by each single performanceobligation, and measure the income according to the transaction price allocated to each single performanceobligation.If one of the following conditions is satisfied, the Group shall perform its obligations within a certain period oftime; otherwise, it belongs to the performance obligation at a certain point:
① The Client obtains and consumes the economic benefits brought by the Group's performance at the sametime of the Group's performance.
② The customer can control the goods under construction during the performance of the Group.
③ The commodities produced by the Group during the performance of the Contract have irreplaceablepurposes, and the Group has the right to collect payment for the accumulated part of the performancecompleted so far during the whole period of the Contract.
For the performance obligations performed within a certain period of time, the Group shall recognize theincome in accordance with the performance progress within that period.If the performance progress cannotbe reasonably determined and the Group is expected to be compensated for the costs already incurred, therevenue shall be recognized according to the amount of the costs already incurred until the performanceprogress can be reasonably determined.For performance obligations performed at a certain point, the Group recognizes revenue at the point when thecustomer acquires control of the relevant goods or services.In determining whether a customer has acquiredcontrol of goods or services, the Group will take into account the following indications:
① The Group has a current right to receive payment for the goods or services, that is, the Customer has acurrent obligation to pay for the goods.
② The Group has transferred the legal ownership of the commodity to the customer, that is, the customer hasthe legal ownership of the commodity.
③ The Group has transferred the goods in kind to the customer, that is, the customer has physical possessionof the goods.
(4) The Group has transferred the main risks and rewards on the ownership of the commodity to the customer,that is, the customer has acquired the main risks and rewards on the ownership of the commodity.
⑤ The customer has accepted the goods or services.
⑥ Other indications that the customer has acquired control of the product.
The Group's right to receive consideration for goods or services transferred to a customer (and this rightdepends on other factors other than the passage of time) is a contract asset which is subject to impairment onthe basis of expected credit losses (see Note V, 10 (5)). The Group's right, unconditional (depending only onthe passage of time) to collect consideration from customers is shown as a receivable. The Group's obligationto transfer goods or services to customers for which it has received or receivable consideration is a contractualliability.The contract assets and contract liabilities under the same contract shall be presented on a net basis. If the netamount is the debit balance, it shall be presented under the item of "Contract Assets" or "Other Non-currentAssets" according to its liquidity; If the net amount is a credit balance, it shall be shown under the item"Contract Liabilities" or "Other Non-current Liabilities" according to its liquidity.
(2)Specific methods
The specific methods of the Group's revenue recognition are as follows:
① The method for recognizing revenue from property sales
(1) the sale contract has been signed and filed with housing construction bureau; (2) the property developmentis completed and pass the acceptance; (3) For Lump-sum payment, revenue is recognized by the group when theconsideration is fully received. For instalment payment, revenue is recognized when the first installment hasbeen received and the bank mortgage approval procedures have been completed. (4) completed the proceduresfor entering the partnership in accordance with the requirements stipulated in sale contract.
② The method for recognizing revenue from property services provided
According to property service contract, agreed service period, area served and unit price, revenue is recognizedevenly within agreed service period.
③ The method for recognizing revenue from construction activities
As the customer can control the goods under construction during the performance of the Group, the group shallrecognize the income in accordance with the performance progress within a certain period of time (except forperformance progress cannot be reasonably determined). The group shall determine the performance progressbased on cost incurred. If the performance progress cannot be reasonably determined and the Group is expectedto be compensated for the costs already incurred, the revenue shall be recognized according to the amount ofthe costs already incurred until the performance progress can be reasonably determined. If the contract costscannot be recovered, the cost should be recognized immediately in current period when incurred. When theestimated total cost of the contract is likely to exceed the total revenue of the contract, the cost of the mainbusiness and the estimated liabilities shall be recognized in accordance with the unexecuted loss contract. Theloss shall be recognized as current cost and put into provisions.
④ The method for recognizing revenue from other income
Revenue from other income include income from hotel operations, etc. Rooms revenue from hotel operationsshall be recognized in accordance with the performance progress within agreed period, as the client obtains andconsumes the economic benefits brought by the Group’s performance and the group’s performance obligationshas performed at a certain period of time. For other income, the group recognizes revenue at the point when thecustomer acquires control of the relevant goods or services, which indicate the group has a right to receivepayment for services or goods provided in accordance with the relevant contract.
40. Government grants
A government grant is recognised when there is reasonable assurance that the grant will be received and thatthe Group will comply with the conditions attaching to the grant.If a government grant is in the form of a transfer of a monetary asset, it is measured at the amount received orreceivable. If a government grant is in the form of a transfer of a non-monetary asset, it is measured at fairvalue. If fair value cannot be reliably determined, it is measured at a nominal amount of CNY 1.Government grants related to assets are grants whose primary condition is that the Group qualifying for themshould purchase, construct or otherwise acquire long-term assets. Government grants related to income aregrants other than those related to assets.For government grants with unspecified purpose, the amount of grants used to form a long-term asset isregarded as government grants related to an asset, the remaining amount of grants is regarded as governmentgrants related to income. If it is not possible to distinguish, the amount of grants is treated as governmentgrants related to income.A government grant related to an asset is offset against the carrying amount of the related asset, or.recognisedas deferred income and amortised to profit or loss over the useful life of the related asset on a reasonable andsystematic manner. A grant that compensates the Group for expenses or losses already incurred is recognisedin profit or loss or offset against related expenses directly. A grant that compensates the Group for expenses orlosses to be incurred in the future is recognised as deferred income, and included in profit or loss or offset
against related expenses in the periods in which the expenses or losses are recognised. The Group applies aconsistent approach to same or similar government grant transactions.A grant related to ordinary activities is recognised as other income or offset against related expenses based onthe economic substance. A grant not related to ordinary activities is recognised as non-operating income.When a recognised government grant is reversed, carrying amout of the related asset is adjusted if the grantwas initially recognized as offset against the carrying amount of the related asset. If there is balance of relevantdeferred income, it is offset against the carrying amount of relevant deferred income. Any excess of thereversal to the carrying amount of deferred income is recognised in profit or loss for the current period. Forother circumstances, reversal is directly recognized in profit or loss for the current period.
41. Deferred tax assets and Deferred tax liabilities
Income tax comprises of current tax and deferred tax. Current tax and deferred tax are recognised in profit orloss except to the extent that they relate to transactions or items recognised directly in equity and goodwillarising from a business combination.Deferred tax assets and deferred tax liabilities arise from deductible and taxable temporary differencesrespectively, being the differences between the carrying amounts of assets and liabilities for financial reportingpurposes and their tax bases.All the taxable temporary differences are recognized as deferred tax liabilities except for those incurred in thefollowing transactions:
(1) initial recognition of goodwill, or assets or liabilities in a transaction that is not a business combinationand that affects neither accounting profit nor taxable profit (or deductible loss);
(2) taxable temporary differences associated with investments in subsidiaries, associates and joint ventures,and the Group is able to control the timing of the reversal of the temporary difference and it is probable thatthe temporary difference will not reverse in the foreseeable future.The Group recognises a deferred tax asset for deductible temporary differences, deductible losses and taxcredits carried forward to subsequent periods, to the extent that it is probable that future taxable profits willbe available against which deductible temporary differences, deductible losses and tax credits can be utilised,except for those incurred in the following transactions:
(1) a transaction that is not a business combination and that affects neither accounting profit nor taxableprofit (or deductible loss);
(2) deductible temporary differences associated with investments in subsidiaries, associates and jointventures, the corresponding deferred tax asset is recognized when both of the following conditions aresatisfied: it is probable that the temporary difference will reverse in the foreseeable future; and it is probablethat taxable profits will be available in the future against which the temporary difference can be utilized.At the balance sheet date, deferred tax is measured based on the tax consequences that would follow from theexpected manner of recovery or settlement of the carrying amount of the assets and liabilities, using tax rates
enacted at the reporting date that are expected to be applied in the period when the asset is recovered or theliability is settled.The carrying amount of a deferred tax asset is reviewed at each balance sheet date, and is reduced to theextent that it is no longer probable that the related tax benefits will be utilised. Such reduction is reversed tothe extent that it becomes probable that sufficient taxable profits will be available.
42. Leases
(1) Identification of leases
On the commencement date of the contract, the Group, as lessee or lessor, assesses whether the customerunder the contract is entitled to receive almost all the economic benefits arising from the use of the identifiedassets during the use period and to direct the use of the identified assets during the use period.The Groupconsiders the contract to be a lease or an inclusive lease if one of the parties to the contract relinquishes controlover the use of one or more identified assets for a certain period of time in exchange for consideration.
(2) The Group acts as the lessee
On the commencement date of the lease, the Group recognizes the right-of-use assets and lease liabilities for allleases, except for simplified short-term leases and leases of low value assets.For the accounting policy of the Right-of-use assets, see Note V.29. For the accounting policy of lease liabilities,please refer to Note V. 35Lease liabilities are initially measured at the present value of the outstanding lease payments at thecommencement date of the lease at the embedded interest rate on the lease. The rental payment amountincludes: fixed payment amount and substantial fixed payment amount. If there is lease incentive amount, therelevant amount of lease incentive amount will be deducted. Variable lease payments depending on an index orratio; The exercise price of the Option provided that the Lessee is reasonably certain that the Option will beexercised; The amount to be paid to exercise the option to terminate the lease if the lease term reflects that thelessee will exercise the option to terminate the lease; And the amount expected to be payable based on theresidual value of the security provided by the Lessee. The interest expense of the lease liability in each period ofthe lease term shall be calculated in accordance with the fixed periodic interest rate and recorded into the profitand loss of the current period. The variable lease payment not included in the measurement of lease liabilitiesshall be recorded into the current profit and loss when actually incurred.Short term leaseShort-term tenancy is a tenancy for a period of not more than 12 months at the commencement date of thetenancy, except for tenancies that include a purchase option.The Group will record the lease payment amount of short-term lease into the cost of relevant assets or currentprofit and loss in each period of the lease term according to the straight-line method [or other systemicallyreasonable method].For short-term lease, the Group chooses to adopt the above simplified treatment method for the items thatmeet the short-term lease conditions in the following asset types according to the categories of leased assets.Low value asset leasing
Leasing of low-value assets refers to the leasing of a single leased asset whose value is less than CNY 100,000.00when it is a brand-new asset.The Group will include the lease payment of the low-value asset lease into the cost of the relevant asset orcurrent profit and loss in each period of the lease term according to the straight-line method.For low-value asset leases, the Group chooses to adopt the above simplified treatment method according to thespecific situation of each lease.
(3) The Group acts as the lessor
When the Group acts as the lessor, the leases that substantially transfer all the risks and rewards related to theownership of the assets are recognized as financial leases, and other leases other than financial leases arerecognized as operating leases.Finance leaseIn the case of financial leasing, the Group takes the net lease investment as the book value of the receivablefinance lease funds at the beginning of the lease period, and the net lease investment is the sum of theunguaranteed residual value and the present value of the unreceived lease income at the beginning of the leaseperiod discounted at the embodied interest rate.The Group, as the lessor, calculates and recognizes interestincome for each period of the lease term at a fixed periodic rate.The variable lease payment obtained by theGroup as the lessor and not included in the measurement of the net lease investment shall be recorded into thecurrent profit and loss when actually incurred.The termination recognition and impairment of financial lease receivable shall be accounted for in accordancewith the provisions of the Accounting Standards for Business Enterprises No. 22 - Recognition and Measurementof Financial Instruments and the Accounting Standards for Business Enterprises No. 23 - Transfer of FinancialAssets.Operating leaseFor the rent in the operating lease, the Group shall recognize the profits and losses of the current period inaccordance with the straight-line method during each period of the lease term. The initial direct expensesincurred in connection with the operating lease shall be capitalized, allocated on the same basis as therecognition of rental income during the lease term and recorded into the current profit and loss in installments.The variable lease payments obtained in connection with the operating lease and not included in the leasereceipts shall be recorded into the current profit and loss when actually incurred.Change of LeaseIn addition to the simplified method for contract changes directly caused by COVID-19 epidemic, if there is achange in the operating lease, the group shall, as of the effective date of the change, treat it as a new lease, theamount received in advance or in respect of the lease receivable relating to the lease prior to the change shall bedeemed to be the amount received for the new lease.In addition to the simplified method of contract changes directly caused by COVID-19 epidemic, if the financiallease is changed and the following conditions are met at the same time, the group accounts for the change as aseparate lease: 1 the change extends the scope of the lease by adding the right to use one or more leased assets;2 the increased consideration is equivalent to the amount of the individual price of the extended portion of thelease, adjusted in accordance with the circumstances of the contract.
Where a change in a financial lease is not accounted for as a separate lease, the group shall treat the changedlease as follows: 1 if the change becomes effective on the lease commencement date, if the lease will beclassified as an operating lease, the group will treat it as a new lease from the effective date of the lease change,the book value of the leased asset shall be the net investment in the lease prior to the effective date of the leasechange. 2 if the change takes effect on the effective date of the lease, the lease will be classified as a financiallease, the accounting treatment of the group is in accordance with the provisions of the "Accounting Standardsfor enterprises No. 22-recognition and measurement of financial instruments" concerning modification orrenegotiation of contracts.
(4) Rental concession caused by COVID-19 epidemic
For rent concessions such as rent remission or deferred payment reached between the Group and the lesseeor lessor on existing lease contracts directly caused by the COVID-19 epidemic, and meeting the followingconditions, the Group adopts a simplified method for [houses and buildings] and other categories of leases:
(1) The lease consideration after the concession is reduced or basically unchanged compared with that beforethe concession, in which, the lease consideration is not discounted or discounted at the discount rate beforethe concession;
② The concession is only for the lease payment payable before June 30, 2022;
③ There are no significant changes in other terms and conditions of the lease after comprehensiveconsideration of qualitative and quantitative factors.The Group does not evaluate whether a lease change has occurred.When the Group is the lessee, the Group will continue to calculate the interest expense of the lease liability atthe same discount rate as before the concession and record it into the current profit and loss, and continue tocarry out depreciation and other subsequent measurements on the Right-of-use assets in the same way asbefore the concession. In case of rent remission, the Group will take the remitted rent as the variable leasepayment amount. When the original rent payment obligation is terminated by reaching a concessionagreement, the Group will deduct the relevant asset cost or expense by the amount discounted at theundiscounted or pre-concession discount rate, and adjust the lease liability accordingly. In case of deferredrent payment, the Group shall write off the lease liabilities confirmed earlier when actually paying the rent. Forshort-term leases with simplified treatment and leases of low-value assets, the Group continues to record therental under the original contract as the cost or expense of the relevant assets in the same manner as beforethe concession. In case of rent remission or reduction, the Group shall treat the remission or reduction of rentas variable lease payment and write off the cost or expense of relevant assets during the remission orreduction period. If the rent is delayed in payment, the Group shall recognize the rent payable during theoriginal payment period as the payable amount, and deduct the payable amount confirmed earlier when theactual payment is made.When the Group acts as the lessor, for the operating lease, the Group continues to recognize the originalcontract rent as lease income in the same way as before the concession. In case of rent remission or reduction,the Group shall treat the remission or reduction as variable lease payment and deduct the lease income duringthe remission or reduction period. If the rent collection is delayed, the Group will recognize the rent collected asreceivable during the original collection period, and deduct the receivable confirmed in the earlier period whenthe rent is actually received. For finance leases, the Group continues to calculate interest and recognize it as
lease income at the same discount rate as before the concession. In case of rent reduction or reduction, theGroup will take the rent reduced or reduced as the variable lease payment amount. When the right to charge theoriginal rent is waived by reaching a concession agreement, the Group will deduct the original confirmed leaseincome by the amount of discount before the concession or at the discount rate before the concession, andrecord the insufficient write-off into investment income, and adjust the receivable finance lease fundsaccordingly. In case of delayed payment of rent, the Group shall write off the finance lease receivable confirmedin the earlier period when it actually receives the rent.
43. Fair value measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderlytransaction between market participants at the measurement date.The Group measures related assets or liabilities at fair value assuming the assets or liabilities are exchanged in anorderly transaction in the principal market; in the absence of a principal market, assuming the assets or liabilitiesare exchanged in an orderly transaction in the most advantageous market. Principal market (or the mostadvantageous market) is the market that the Group can normally enter into a transaction on measurement date.The Group adopts the presumptions that would be used by market participants in achieving the maximizedeconomic value of the assets or liabilities.For financial assets or financial liabilities with active markets, the Group uses the quoted prices in active marketsas their fair value. Otherwise, the Group uses valuation technique to determine their fair value.Fair value measurement of a non-financial asset takes into account market participants’ ability to generateeconomic benefits using the asset in its best way or by selling it to another market participant that would bestuse the asset.The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data areavailable to measure fair value, maximizing the use of relevant observable inputs, and using unobservable inputsonly if the observable inputs aren’t available or impractical.Fair value level for assets and liabilities measured or disclosed at fair value in the financial statements aredetermined according to the significant lowest level input to the entire measurement: Level 1 inputs are quotedprices (unadjusted) in active markets for identical assets or liabilities that the Group can access at themeasurement date; Level 2 inputs are inputs other than quoted prices included within Level 1 that areobservable for the assets or liabilities, either directly or indirectly; Level 3 inputs are unobservable inputs for theassets or liabilities.At the balance sheet date, the Group revalues assets and liabilities being measured at fair value continuously inthe financial statements to determine whether to change the levels of fair value measurement.
44. Other significant accounting judgments and estimates
45. Changes in significant accounting policies and accounting estimates
(1)Significant changes in accounting policies
□ Applicable √ Not Applicable
(2)Significant changes in accounting estimates
□ Applicable √ Not Applicable
46. Other
VI. Taxation
1. Main types of taxes and corresponding tax rates
Tax type | Tax basis | Tax rate% |
VAT | Taxable income | 9%. 6%. 5%. 3% |
City maintenance and construction tax | Turnover tax payable | 7% |
Corporate income tax | Taxable profits | 25%. 16.5% |
Land appreciation tax | It shall be levied on the basis of the value-added value of the real estate transferred and the prescribed tax rate and paid in advance according to the type of real estate product | Four progressive rates of excess rate: 30,40,50, 60 |
Property tax | 70% of the original value of properties/ rental income | 1.2% . 12% |
Education surcharge | Turnover tax payable | 3% |
Local education surcharge | Turnover tax payable | 2% |
The disclosure of taxpayers in different corporate income tax rates:
Name of taxpayer | Income tax rate |
2. Tax preferential treatments
Subsidiaries of the Group, Shenzhen Huazhan Construction Supervision Co., Ltd. and Shantou Special EconomicZone Xiangshan Real Estate Development Co., Ltd. are applicable to the preferential tax rate of 20% for small andlow-profit enterprises.
3. Other
VII. Notes to the consolidated financial statements
1. Cash at bank and Cash Equivalent
Presented in RMB
Item | As at 30 June 2022 | As at 1 January 2022 |
Cash in hand | 9,262.03 | 12,082.00 |
Deposits with banks | 265,621,433.40 | 316,834,778.45 |
Other monetary funds | 61,284,891.22 | 247,511,964.18 |
Total | 326,915,586.65 | 564,358,824.63 |
Including: Total overseas deposits | 6,668,448.15 | 5,970,125.18 |
Other notes:
At the end of 30 June 2022, there were CNY5,674,439.78 of restricted funds in the bank deposits, which werethe funds for the construction of public facilities in and around the city of Longgang district.At the end of 30 June 2022, the balance of other monetary funds is CNY61,284,891.22, including seven-daynotice deposit of CNY58,284,891.22 and fixed deposits of CNY 3,000,000.00.
2. Trading financial assets
Presented in RMB
Item | As at 30 June 2022 | As at 1 January 2022 |
As at fair value through profit or loss | 404,148,060.54 | 514,024,710.91 |
Including:: | ||
wealth management fund | 404,148,060.54 | 514,024,710.91 |
Including:: | ||
Total | 404,148,060.54 | 514,024,710.91 |
Other notes:
3. Derivative financial assets
Presented in RMB
Item | As at 30 June 2022 | As at 1 January 2022 |
Other Note:
4. Notes receivable
(1)Types of notes
Presented in RMB
Item | As at 30 June 2022 | As at 1 January 2022 |
Commercial acceptance bill | 200,000.00 | 3,530,537.37 |
Total | 200,000.00 | 3,530,537.37 |
Presented in RMB
Types | As at 30 June 2022 | As at 1 January 2022 | ||||||||
Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
Amount | Percentage | Amount | Provision proportion | Amount | Percentage | Amount | Provision proportion | |||
Bad debt provisions made on an | 500,000.00 | 100.00% | 300,000.00 | 60.00% | 200,000.00 | 4,626,346.44 | 72.35% | 2,775,807.86 | 60.00% | 1,850,538.58 |
individual basis | ||||||||||
Including: | ||||||||||
Commercial acceptance bill | 500,000.00 | 100.00% | 300,000.00 | 60.00% | 200,000.00 | 4,626,346.44 | 72.35% | 2,775,807.86 | 60.00% | 1,850,538.58 |
Bad debt provisions made on a combination basis | 1,768,419.78 | 27.65% | 88,420.99 | 5.00% | 1,679,998.79 | |||||
Including: | ||||||||||
Commercial acceptance bill | 1,768,419.78 | 27.65% | 88,420.99 | 5.00% | 1,679,998.79 | |||||
Total | 500,000.00 | 100.00% | 300,000.00 | 60.00% | 200,000.00 | 6,394,766.22 | 100.00% | 2,864,228.85 | 44.79% | 3,530,537.37 |
Bad debt provision made on an individual basis:
Presented in RMB
Item | As at 30 June 2022 | |||
Book balance | Bad debt provision | Provision proportion | Reason | |
Shenzhen Hongteng Investment Management Co., Ltd. | 500,000.00 | 200,000.00 | 60.00% | recoverability is relatively small |
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 notes receivable.
□ Applicable √ Not Applicable
(2)Additions, recoveries or reversals of provision for the current period
Additions in current period:
Presented in RMB
Item | As at 1 January 2022 | The amount of change in current period | As at 30 June 2022 | |||
Provision | Recoveries or reversals | Written-off | Others | |||
commercial acceptance | 2,864,228.85 | 2,564,228.85 | 200,000.00 |
bill | ||||||
Total | 2,864,228.85 | 2,564,228.85 | 200,000.00 |
Including: significant recoveries or reversals of bad debt provisions in the current period:
□ Applicable √ Not Applicable
(3)Notes receivable pledged by the Group at the end of the period
Presented in RMB
Types | Amount pledged at the end of the period |
(4)At the end of the period, the Group's endorsed or discounted notes receivable which have not yetmatured
Presented in RMB
Types | Derecognized Amount at the end of the period | Amount that is not derecognized at the end of the period |
(5)Notes receivable transferred to accounts receivable by the Group due to the drawer's non-performance at the end of the period
Presented in RMB
Types | Amount transferred to accounts receivable at the end of the period |
commercial acceptance bill | 4,126,346.44 |
Total | 4,126,346.44 |
Other Note:
(6)Actual write-off of notes receivable in the current period
Presented in RMB
Item | Written-off amount |
Including, the significant write-offs of notes receivable are as follows
Presented in RMB
Name of the entity | Nature of accounts | Written-off amount | Reason for written-off | Approval procedures performed | Accounts receivable arising from related party transactions(Y/N) |
Note:
5. Accounts receivable
(1)Classified by bad debt provision method
Presented in RMB
Types | As at 30 June 2022 | As at 1 January 2022 | ||||||||
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 | 36,676,783.37 | 34.75% | 31,688,211.23 | 86.40% | 4,988,572.14 | 32,550,436.93 | 35.29% | 29,212,403.37 | 89.75% | 3,338,033.56 |
Including: | ||||||||||
Bad debt provisions made on a combination basis | 68,874,484.65 | 65.25% | 1,914,112.08 | 2.78% | 66,960,372.57 | 59,686,262.33 | 64.71% | 1,975,510.78 | 3.31% | 57,710,751.55 |
Including | ||||||||||
Receivable from property sales | 1,064,220.18 | 1.01% | 53,211.01 | 5.00% | 1,011,009.17 | 1,064,220.18 | 1.15% | 53,211.01 | 5.00% | 1,011,009.17 |
Receivable from other corporate customers | 67,810,264.47 | 64.24% | 1,860,901.07 | 2.74% | 65,949,363.40 | 58,622,042.15 | 63.56% | 1,922,299.77 | 3.28% | 56,699,742.38 |
Total | 105,551,268.02 | 100.00% | 33,602,323.31 | 31.84% | 71,948,944.71 | 92,236,699.26 | 100.00% | 31,187,914.15 | 33.81% | 61,048,785.11 |
Bad debt provisions made on an individual basis
Presented in RMB
Item | As at 30 June 2022 | |||
Book balance | Bad debt provision | Provision percentage | Reason | |
Shenzhen Hongteng Investment Management Co., | 12,471,430.35 | 7,482,858.21 | 60.00% | recoverability is relatively small |
Ltd. | ||||
Agent for import and export business payment | 11,574,556.00 | 11,574,556.00 | 100.00% | Could be uncollectible |
Long-term receivable of property sale | 9,649,415.20 | 9,649,415.20 | 100.00% | Could be uncollectible |
Accounts receivable from the revoked subsidiary | 2,328,158.40 | 2,328,158.40 | 100.00% | Could be uncollectible |
Accounts receivable from other customers | 653,223.42 | 653,223.42 | 100.00% | Could be uncollectible |
Total | 36,676,783.37 | 31,688,211.23 |
Bad debt provision made on a combination basis:
Combined withdrawal item: property sales receivable
Presented in RMB
Item | As at 30 June 2022 | ||
Book balance | Bad debt provision | Provision percentage | |
Within 1 year | 1,064,220.18 | 53,211.01 | 5.00% |
1 to 2 years | |||
Total | 1,064,220.18 | 53,211.01 |
Note to the basis for determining the combination:
Bad debt provision made on a combination basis:
Combined withdrawal item: other customers receivales
Presented in RMB
Item | As at 30 June 2022 | ||
Book balance | Bad debt provision | Provision percentage | |
Within 1 year | 56,637,006.35 | 1,302,238.16 | 2.30% |
1 to 2 years | 11,173,258.12 | 558,662.91 | 5.00% |
Total | 67,810,264.47 | 1,860,901.07 |
Note to the basis for determining the combination:
Please refer to the way of disclosing other receivables’ bad debt provision to disclose relevant information, ifthe group choose to use general model of expected credit losses to accrue bad debts of notes receivable.
□ Applicable √ Not Applicable
Disclosure by Aging
Presented in RMB
Aging | As at 30 June 2022 |
Within 1 year(include 1 year) | 65,413,817.01 |
1 to 2 years | 16,161,830.26 |
3to 5 years | 23,975,620.75 |
More than 5 years | 23,975,620.75 |
Total | 105,551,268.02 |
(2)Additions, recoveries or reversals of provision for the current period
Provision for the current period:
Presented in RMB
Types | As at 1 January 2022 | Amount changes in current period | As at 30 June 2022 | |||
Provision | Recoveries or reversals | Written-off | Others | |||
Bad debt provision | 31,187,914.15 | -149,819.69 | 2,564,228.85 | 33,602,323.31 | ||
Total | 31,187,914.15 | -149,819.69 | 2,564,228.85 | 33,602,323.31 |
Including: significant recoveries or reversals of bad debt provisions in the current period are as follows:
Presented in RMB
Name of the entity | Recoveries or reversals amount | Recovery manner |
(3)Actual write-off of accounts receivable in the current period
Presented in RMB
Item | Written-off amount |
Including, the significant write-offs of accounts receivable are as follows
Presented in RMB
Name of the 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:
(4)The top five units with the ending balance of accounts receivable collected by the debtor
Presented in RMB
Name of the entity | Accounts receivable The ending balance | % of the total closing balance of accounts receivable | Bad debt provision The ending balance |
Shenzhen Hongteng Investment Management Co., Ltd. | 12,471,430.35 | 11.82% | 7,482,858.21 |
Wuhan Yutian Xingye Land Co., LTD | 9,465,700.87 | 8.97% | 473,285.04 |
Jiangsu Huajian Construction Co., Ltd. Shenzhen Branch | 9,097,885.22 | 8.62% | 454,894.26 |
Wuhan 2049 Poly Real Estate Development Co., Ltd. | 7,794,861.35 | 7.38% | 389,743.07 |
Wuhan Linyun Real Estate Development Co., Ltd. | 7,608,187.02 | 7.21% | 380,409.35 |
Total | 46,438,064.81 | 44.00% |
(5)Accounts receivable terminated due to the transfer of financial assets
(6)Transfer of accounts receivable and continue to involve the amount of assets and liabilities formedNote:
6. Accounts receivable financing
Presented in RMB
Item | As at 30 June 2022 | As at 1 January 2022 |
The current period of receivables financing changes and changes in fair value.
□ Applicable √ Not applicable
Refer to the way of disclosing provision for other receivables to disclose relevant information, if use generalmodel of expected credit losses to recognize allowance for impairment of receivable financing .
□ Applicable √ Not applicable
Note:
7. Prepayments
(1) The aging analysis of prepayments is as follows
Presented in RMB
Aging | As at 30 June 2022 | As at 1 January 2022 | ||
Amount | % | Amount | % | |
Within 1 year | 9,067,399.24 | 70.15% | 4,698,254.37 | 93.74% |
1 to 2 years | 3,658,245.36 | 28.30% | 206.95 | 1.01% |
2 to 3 years | 206.95 | 0.00% | 6.23% | |
More than 3 years | 200,550.00 | 1.55% | 200,550.00 | 0.02% |
Total | 12,926,401.55 | 4,899,011.32 |
Reason for significant prepayments aging more than 1 year and not be settled:
(2)The top five units of the ending balance of prepayments
The sum of the top five prepayments collected by prepaid objects at the end of the period is 7,658,241.35yuan, which accounts for 59.24 % of the total ending balance of prepayments.
8. Other receivables
Presented in RMB
Item | As at 30 June 2022 | As at 1 January 2022 |
Dividends receivable | 1,052,192.76 | 1,052,192.76 |
Other receivables | 47,962,538.86 | 29,561,815.32 |
Total | 49,014,731.62 | 30,614,008.08 |
(1)Interest receivable
1)Interest receivable classification
Presented in RMB
Item | As at 30 June 2022 | As at 1 January 2022 |
2)Significant overdue interest
Presented in RMB
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) | As at 30 June 2022 | As at 1 January 2022 |
Yunnan Kunpeng Air Service Co., LTD | 1,052,192.76 | 1,052,192.76 |
Total | 1,052,192.76 | 1,052,192.76 |
2)Significant dividends receivable overdue more than one year are as follows:
Presented in RMB
Items (or invested units) | As at 30 June 2022 | Aging | Reasons for not retrieving | Whether impairment occurs and the basis for judgment |
Yunnan Kunpeng Air Service Co., LTD | 1,052,192.76 | 5 years | Delay to issue | No |
Total | 1,052,192.76 |
3)Bad Debt Provisions
□ Applicable √ Not Applicable
(3)Other receivables
1)Other receivables disclosure by nature
Presented in RMB
Item | Book balance as at 30 June 2022 | Book balance as at 1 January 2022 |
Other receivables from employee’s petty cash | 679,036.60 | 580,911.83 |
Other receivables from the collecting and paying on behalf | 627,681.27 | 627,681.27 |
Other receivables from other customers | 67,161,585.17 | 48,840,482.91 |
Other receivables from related parties | 168,705,898.17 | 168,705,898.17 |
Total | 237,174,201.21 | 218,754,974.18 |
2)Bad Debt Provision
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 as at 1 January 2022 | 1,491,716.94 | 187,701,441.92 | 189,193,158.86 | |
Balance as at 1 January 2022 in current period | ||||
Provision in a current period | 18,503.49 | 18,503.49 | ||
Balance as at 30 June 2022 | 1,510,220.43 | 187,701,441.92 | 189,211,662.35 |
Changes in the book balance with significant changes in the loss provision for the current period:
□ Applicable √ Not Applicable
Disclosure by aging
Presented in RMB
Aging | As at 30 June 2022 |
Within 1 year (include 1 year) | 47,855,956.05 |
1 to 2 years | 905,350.96 |
2 to 3 years | 106,096.34 |
More than 3 years | 188,306,797.86 |
3 to 4 years | 605,355.94 |
More than 5 years | 187,701,441.92 |
Total | 237,174,201.21 |
3)Additions, recoveries or reversals of provision for the current period
Presented in RMB
Types | As at 1 January 2022 | Amount changes in current period | As at 30 June 2022 | |||
Additions | Recoveries or reversals | Written-off | Others | |||
Other receivables bad debt provision | 189,193,158.86 | 18,503.49 | 189,211,662.35 | |||
Total | 189,193,158.86 | 18,503.49 | 189,211,662.35 |
Including: significant recoveries or reversals of bad debt provisions in the current period are as follows:
Presented in RMB
Name of the entity | Amount of recoveries or reversals | Recovery manner |
4)Other receivables actually written off in the current period
Presented in RMB
Item | Amount of written-off |
Including, the important accounts receivable write-off situation is as follows
Presented in RMB
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:
5)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 | current account | 89,035,748.07 | More than 5 years | 37.54% | 89,035,748.07 |
Paklid Limited | current account | 19,319,864.85 | More than 5 | 8.15% | 19,319,864.85 |
years | |||||
Australia Bekaton property Limited | current account | 12,559,290.58 | More than 5 years | 5.30% | 12,559,290.58 |
Guangdong province Huizhou Luofu Hill Mineral Water Co.,Ltd | current account | 10,465,168.81 | More than 5 years | 4.41% | 10,465,168.81 |
Xi’an Fresh Peak Property Trading Co., Ltd | current account | 8,419,205.19 | More than 5 years | 3.55% | 8,419,205.19 |
Total | 139,799,277.50 | 58.94% | 139,799,277.50 |
6)Government subsidies receivable
Presented in RMB
Name of the organization | Name of government subsidy item | The ending balance | Aging | Estimated time, amount and basis of collection |
7)Other receivables terminated due to the transfer of financial assets8)Amount of assets and liabilities formed by transferring other receivables and continuing to involve them
9. Inventories
Does the Company need to comply with the disclosure requirements of real estate industry?Yes
(1)Inventory classification
The company complies with the disclosure requirements of "Shenzhen Stock Exchange Industry InformationDisclosure Guidelines No. 3-Listed Companies Engaged in Real Estate Business".Classified by nature:
Presented in RMB
Item | As at 30 June 2022 | As at 1 January 2022 | ||||
Book balance | Provision for impairment of inventorie s | The book value | Book balance | Provision for impairment of inventorie s | The book value | |
Real estate developing cost | 3,147,212,445.46 | 3,147,212,445.46 | 3,037,991,969.96 | 3,037,991,969.96 | ||
Real estate developed products | 889,915,248.10 | 889,915,248.10 | 994,212,857.29 | 994,212,857.29 | ||
Raw materials | 8,458.34 | 8,458.34 | 8,458.34 | 8,458.34 |
Finished goods | 331,370.65 | 38,891.91 | 292,478.74 | 334,040.04 | 38,891.91 | 295,148.13 |
Project material | 32,950,760.23 | 32,950,760.23 | 2,425,128.90 | 2,425,128.90 | ||
Total | 4,070,418,282.78 | 38,891.91 | 4,070,379,390.87 | 4,034,972,454.53 | 38,891.91 | 4,034,933,562.62 |
The main items of " Real estate developing cost " and their interest capitalization are shown below:
Presented in RMB
Item | Starting time | Time for completion | Estimated total investment | As at 1 January 2022 | Less: Transfer to “Real estate developed products | Less: Other reduction | Add: Increase in this period | As at 30 June 2022 | Cumulative interest capitalization | Include: Amount of interest capitalized in the current period | Sources of funds |
ShanTou Fresh Peak Building | 28,291,908.11 | 0.00 | 28,291,908.11 | Other | |||||||
Guangmingli | 18 February 2022 | 7 December 2024 | 1,520,600,000.00 | 993,950,000.00 | 10,282,823.87 | 1,004,232,823.87 | Other | ||||
Lin Xin Garden | 30 June 2023 | 3,000,000,000.00 | 2,015,750,061.85 | 98,937,651.63 | 2,114,687,713.48 | 12,326,753.08 | 89,286.77 | Other | |||
Total | 4,520,600,000.00 | 3,037,991,969.96 | 109,220,475.50 | 3,147,212,445.46 | 12,326,753.08 | 89,286.77 |
The main items of " Real estate developed products" and their interest capitalization are shown below:
Presented in RMB
Item | Time for completion | As at 1 January 2022 | Increase | Decrease | As at 30 June 2022 | Cumulative interest capitalization | Include: Amount of interest capitalized in the current period |
Jinye Island Multi-tier villa | 16 Sep. 1997 | 39,494,762.60 | 39,494,762.60 | ||||
Jinye Island villa No.10 | 2 Dec 2010 | 5,696,007.25 | 5,696,007.25 | ||||
Jinye Island villa No.11 | 20 Aug. 2008 | 2,333,281.42 | 2,333,281.42 | ||||
YueJing dongfang | 18 Nov. 2014 | 7,305,619.37 | 592,296.15 | 6,713,323.22 |
Project | |||||||
HuangPu XinCun | 140,000.00 | 140,000.00 | |||||
Beijing Fresh Peak Buliding | 304,557.05 | 304,557.05 | |||||
TianYue Bay No.1 | 15 Dec. 2017 | 270,542,054.67 | 32,563,206.95 | 237,978,847.72 | |||
Shengfang CuiLin Building | 8 May 2018 | 58,669,056.16 | 58,669,056.16 | ||||
Chuanqi Donghu | 18 Dec 2019 | 41,834,057.24 | 34,130,305.68 | 7,703,751.56 | |||
TianYue Bay No.2 | 30 June 2021 | 567,893,461.53 | 37,011,800.41 | 530,881,661.12 | |||
Total | 994,212,857.29 | 0.00 | 104,297,609.19 | 889,915,248.10 |
The main items of "instalment on development products”, "leased development products”, “Revolving room”are shown below:
Presented in RMB
Item | As at 1 January 2022 | Increase | Decrease | As at 30 June 2022 |
2)Provision for inventories and impairment of contract performance costsClassified by nature:
Presented in RMB
Item | Opening balance | Increase in the reporting period | Decrease in the reporting period | Ending balance | Note | ||
Provision | Others | Reversal or Offset | Others | ||||
Finished products | 38,891.91 | 38,891.91 | |||||
Total | 38,891.91 | 38,891.91 |
Classified by items:
Presented in RMB
Item | Opening balance | Increase in the reporting period | Decrease in the reporting period | Ending balance | Note | ||
Provision | Others | Reversal or Offset | Others | ||||
Finished products | 38,891.91 | 38,891.91 | |||||
Total | 38,891.91 | 38,891.91 |
(3)The ending balance of inventory contains the explanation of the capitalized amount of borrowingexpenses:
As at 30 June 2022, the Group's inventory balance contains capitalized borrowing costs at 12,326,753.08 yuan(As at 31 Dec 2021 is 12,237,466.31 yuan).
(4)Restriction on Inventories
Disclose restriction on Inventories by projects:
Presented in RMB
Name of project | Opening balance | Ending balance | Reason of restriction |
10. Contractual assets
Presented in RMB
Item | Ending balance | Opening balance | ||||
Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value |
The Amount and reason of significant changes in book value of contractual assets in current reporting period:
Presented in RMB
Item | Changes in amount | Reason for change |
Refer to the way of disclosing provision for other receivables to disclose relevant information, if use generalmodel of expected credit losses to recognize allowance for impairment of contractual assets.
□ Applicable √ Not applicable
Provision for impairment of contractual assets in current period:
Presented in RMB
Item | Provision in current period | Reversals in current period | Verification / Written-off in current period | Reason |
Note:
11. Assets held for sale
Presented in RMB
Item | Book balance as at 30 June 2022 | Provision for impairment | Book value as at 30 June 2022 | Fair Value | Estimated disposal costs | Estimated disposal time |
Assets in held-for-sale disposal groups | ||||||
Including: Shenzhen Property Management Co., Ltd. |
Note:
In consideration of optimizing and adjusting the industrial structure, on December 30, 2021, the Company andits subsidiary Shenzhen Shenfang Investment Co., Ltd. signed the Equity Acquisition Agreement with ShenzhenInternational Trade Property Management Co., Ltd. and transferred the 100% equity of Shenzhen Property
Management Co., Ltd. in total to Shenzhen International Trade Property Management Co., Ltd. with a transferprice of RMB 196.6767 million. At the end of 2021, Shenzhen Property Management Co., Ltd. has beenconfirmed as a disposal group held for sale, and assets held for sale of RMB 78,940,232.10 have beenconfirmed.In the first half of 2022, according to the Equity Acquisition Agreement, the Company has received 90% of theconsideration for the sale of the above-mentioned equity, completed the transfer procedures, and terminatedthe recognition of the assets held for sale in its disposal group. The ending book balance of assets held for saleis 0.
12. Non-current assets due within one year
Presented in RMB
Item | As at 30 June 2022 | As at 1 January 2022 |
Significant debt investment/ other debt investment
Presented in RMB
Debt investment | As at 30 June 2022 | As at 1 January 2022 | ||||||
Face value | Coupon rate | Real interest rate | Maturity date | Face value | Coupon rate | Real interest rate | Maturity date |
Note:
13. Other current assets
Presented in RMB
Item | As at 30 June 2022 | As at 1 January 2022 |
Contract acquisition costs | 634,991.79 | 0.00 |
Advance or prepaid income tax | 1,069,352.14 | 3,205,104.33 |
Prepaid VAT | 3,525,374.00 | 7,643,969.22 |
Pending deduct vat on purchase | 28,110,437.46 | 53,061,826.30 |
Land Appreciation Tax | 1,604,369.43 | 2,481,541.71 |
Business Tax | 150,024.32 | 259,308.30 |
Others | 956,131.59 | 1,565,137.18 |
Total | 36,050,680.73 | 68,216,887.04 |
Note:
14. Debt investment
Presented in RMB
Item | As at 30 June 2022 | As at 1 January 2022 | ||||
Book balance | Impairment loss | The book value | Book balance | Impairment loss | The book value |
Significant debt investment
Presented in RMB
Debt investment | As at 30 June 2022 | As at 1 January 2022 | ||||||
Face value | Coupon rate | Real interest | Maturity date | Face value | Coupon rate | Real interest | Maturity date |
rate | rate |
Impairment provisions for the current period
Presented in RMB
Provision | The first stage | The second stage | The third stage | Total |
Expected credit losses over the next 12 months | Expected credit losses over the entire duration (no credit impairment occurred) | Expected credit loss over the entire duration (credit impairment has occurred) | ||
Balance as at 1 January 2022 | —— | —— | —— | —— |
Significant changes in book balance of impairment provisions for the current period
□ Applicable √ Not Applicable
Note:
15. Other debt investment
Presented in RMB
Item | Opening balance | Accrued interest | Changes in current fair value | Ending Balance | The cost of | Cumulative fair value changes | Accumulate the loss provision recognized in other comprehensive income | Note |
Significant other debt investment
Presented in RMB
Other debt investment | As at 30 June 2022 | As at 1 January 2022 | ||||||
Face value | Coupon rate | Real interest rate | Maturity date | Face value | Coupon rate | Real interest rate | Maturity date |
Impairment provisions for the current period
Presented in RMB
Provision | The first stage | The second stage | The third stage | Total |
Expected credit losses over the next 12 months | Expected credit losses over the entire duration (no credit impairment occurred) | Expected credit loss over the entire duration (credit impairment has occurred) | ||
Balance as at 1 Jan. 2022 | —— | —— | —— | —— |
Significant changes in book balance of impairment provisions for the current period
□ Applicable √ Not Applicable
Note:
16. Long-term receivables
(1)Long-term receivables are disclosed by nature
Presented in RMB
Item | As at 30 June 2022 | As at 1 January 2022 | Discount rate range | ||||
Book balance | Bad debt provision | Book Value | Book balance | Bad debt provision | Book Value |
Bad Debt Provision
Presented in RMB
Provision | The first stage | The second stage | The third stage | Total |
Expected credit losses over the next 12 months | Expected credit losses over the entire duration (no credit impairment occurred) | Expected credit loss over the entire duration (credit impairment has occurred) | ||
Balance as at 1 Jan. 2022 | —— | —— | —— | —— |
Significant changes in book balance of impairment provisions for the current period
□ Applicable √ Not Applicable
(2)Long-term receivables terminated due to financial asset transfer
(3)Amount of transferring long-term receivables and continuing to involve in the formation of assets andliabilitiesOther notes:
17. Long-term equity investments
Presented in RMB
Investees | Opening balance (book value) | Movements during the period | Ending balance (book value) | Balance of provision for impairment as June 30 2022 | |||||||
Increase | Decrease | Investment in come recogni sed under equity met ho | Adjustment in OCI | Other eq uity movements | Declared distributio n of cash dividends or profits | Provision f or impairm ent | Other | ||||
1. Joint Venture | |||||||||||
Guangdong province Huizhou Luofu | 9,969,206.09 | 9,969,206.09 | 9,969,206.09 |
Hill Mineral Water Co., Ltd | |||||||||||
Fengkai Xinhua Hotel | 9,455,465.38 | 9,455,465.38 | 9,455,465.38 | ||||||||
Subtotal | 19,424,671.47 | 19,424,671.47 | 19,424,671.47 | ||||||||
2. Associates | |||||||||||
Shenzhen Ronghua JiDian Co., ltd | 1,349,122.92 | 1,349,122.92 | 1,076,954.64 | ||||||||
Shenzhen Runhua Automobile trading Co., Ltd | 1,445,425.56 | 1,445,425.56 | 1,445,425.56 | ||||||||
Dongyi Real Estate Co., Ltd | 30,376,084.89 | 30,376,084.89 | 30,376,084.89 | ||||||||
Subtotal | 33,170,633.37 | 33,170,633.37 | 32,898,465.09 | ||||||||
Total | 52,595,304.84 | 52,595,304.84 | 52,323,136.56 |
Note:
18. Investments in other equity instrument
Presented in RMB
Item | As at 30 June 2022 | As at 1 January 2022 |
Shantou Small &Medium Enterprises Financing Guarantee Co., Ltd | 19,777,460.65 | 13,831,938.92 |
Yunnan KunPeng Flight service Co., Ltd | 0.00 | 22,490,765.41 |
Total | 19,777,460.65 | 36,322,704.33 |
Itemized disclosure of investment in non-trading equity instruments for the current period
Presented in RMB
Item | Dividend income recognized for the current period | The cumulative gains | The cumulative loss | The amount of other comprehensive reserve transferred into retained earnings | Reasons for designating fair value measurement and its changes included in other comprehensive income | Transferring reasons |
Shantou Small &Medium Enterprises Financing Guarantee Co., Ltd | 813,960.00 | 11,496,121.73 | ||||
Yunnan KunPeng Flight service Co., Ltd | 11,449,773.26 | 11,449,773.26 | Dispose of the investment |
Note:
19. Other non-current financial assets
Presented in RMB
Species | As at 30 June 2022 | As at 1 January 2022 |
Note:
20. Investment property
(1) Investment properties measured using the cost model
Presented in RMB
Item | Buildings | Land use rights | Construction in progress | Total |
Ⅰ. Cost | ||||
1. Balance as at 31 Dec. 2021 | 1,042,912,022.39 | 98,272,942.19 | 1,141,184,964.58 | |
2. Additions during the year | 1,832,873.00 | 4,767,448.45 | 6,600,321.45 | |
(1)Purchase | 1,832,873.00 | 1,832,873.00 | ||
(2)Transfer from Inventories\Fixed assets\ |
construction in progress | ||||
(3)Additions due to business combinations | ||||
(4)Others (Exchange Rate Changes) | 4,767,448.45 | 4,767,448.45 | ||
3. Decrease during the year | ||||
(1)Disposals | ||||
(2)Other transfers out | ||||
4.Balance as at 30 June 2022 | 1,044,744,895.39 | 103,040,390.64 | 1,147,785,286.03 | |
II. Accumulated depreciation or amortization | ||||
1. Balance as at 31 Dec. 2021 | 457,533,453.68 | 457,533,453.68 | ||
2. Charge for the year | 12,725,918.76 | 12,725,918.76 | ||
(1)Depreciated or amortised | 12,725,918.76 | 12,725,918.76 | ||
3. Reductions during the year | ||||
(1)Disposals | ||||
(2)Other transfers out | ||||
4.As at 30 June 2022 | 470,259,372.44 | 470,259,372.44 | ||
III. Provision for impairment | ||||
1. Balance as at 31 Dec. 2021 | 14,128,544.62 | 80,657,189.12 | 94,785,733.74 | |
2. Charge for the year | 3,912,867.40 | 3,912,867.40 | ||
(1) Provision | ||||
(2) Others (Exchange Rate Changes) | 3,912,867.40 | 3,912,867.40 | ||
3. Reductions on disposals | ||||
(1)Disposals | ||||
(2)Other transfers out |
4.As at 30 June 2022 | 14,128,544.62 | 84,570,056.52 | 98,698,601.14 | |
IV. Carrying amounts | ||||
1. As at 30 June 2022 | 560,356,978.33 | 18,470,334.12 | 578,827,312.45 | |
2. As at 31 Dec 2021 | 571,250,024.09 | 17,615,753.07 | 588,865,777.16 |
2)Investment property measured at fair value
□ Applicable √ Inapplicable
The company complies with the disclosure requirements of "Shenzhen Stock Exchange IndustryInformation Disclosure Guidelines No. 3-Listed Companies Engaged in Real Estate Business"
Disclosed by projects:
Presented in RMB
Project name | Location | Time for completion | building area | Rental income in reporting period | Fair value as at 31 Dec. 2021 | Fair value as at 30 June 2022 | 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)Investment properties pending certificates of ownership
Presented in RMB
Item | Carrying amount | Reason why certificates are pending |
Note: The current reduction in the original value of land use right and the impairment provision is caused bythe exchange rate changes during the translation of foreign currency statements.
21. Fixed assets
Presented in RMB
Item | As at 30 June 2022 | As at 31 Dec. 2021 |
Fixed assets | 22,677,228.99 | 23,920,424.55 |
Total | 22,677,228.99 | 23,920,424.55 |
(1)Fixed assets
Presented in RMB
Item | Plant & buildings | Motor vehicles | Electronic equipment and others | Total |
I.Cost: | ||||
1. Balance as at 31 Dec. 2021 | 100,117,808.10 | 8,307,455.41 | 7,273,579.83 | 115,698,843.34 |
2.Additions during the year | 123,731.04 | 123,731.04 | ||
(1) Purchases | 123,731.04 | 123,731.04 | ||
(2) Transfers from construction in progress | ||||
(3) Additions due to business combinations | ||||
3. Decrease during the year | 61,875.44 | 61,875.44 | ||
(1) Disposals or written-offs | 61,875.44 | 61,875.44 | ||
4.As at 30 June 2022 | 100,117,808.10 | 8,307,455.41 | 7,335,435.43 | 115,760,698.94 |
II. Accumulated depreciation | ||||
1. Balance as at 31 Dec. 2021 | 79,191,129.84 | 6,864,681.16 | 5,722,607.79 | 91,778,418.79 |
2. Charge for the year | 1,084,373.92 | 118,404.24 | 159,348.88 | 1,362,127.04 |
(1) Provision | 1,084,373.92 | 118,404.24 | 159,348.88 | 1,362,127.04 |
3. Reductions for the year | 57,075.88 | 57,075.88 | ||
(1) Disposal or written-offs | 57,075.88 | 57,075.88 | ||
4. Balance as at 30 June 2022 | 80,275,503.76 | 6,983,085.40 | 5,824,880.79 | 93,083,469.95 |
III. Provision for impairment | ||||
1. Balance as at 31 Dec. 2021 | ||||
2. Charge for the year | ||||
(1) Provision | ||||
3. Reductions for the year | ||||
(1) Disposals or written-offs | ||||
4. Balance As at |
30 June 2022 | ||||
IV. Carrying amount | ||||
1. As at 30 June 2022 | 19,842,304.34 | 1,324,370.01 | 1,510,554.64 | 22,677,228.99 |
2. As at 31 Dec. 2021 | 20,926,678.26 | 1,442,774.25 | 1,550,972.04 | 23,920,424.55 |
(2)Temporarily idle fixed assets
Presented in RMB
Item | Cost | Accumulated depreciation | Provision for impairment | Carrying Amount | Note |
(3)Fixed assets leased out under operating leases
Presented in RMB
Item | Carrying amount at the end of reporting period |
(4)Fixed assets pending certificates of ownership
Presented in RMB
Item | Carrying amount | Reason why certificates of ownership are pending |
Note
(5)Fixed assets to be disposed of
Presented in RMB
项目 | As at 30 June 2022 | As at 31 Dec. 2021 |
Note:
22. Construction in progress
Presented in RMB
Item | As at 30 June 2022 | As at 31 Dec. 2021 |
(1)Construction in progress
Presented in RMB
Item | As at 30 June 2022 | As at 31 Dec. 2021 | ||||
Book value | Provision for | Carrying amount | Book value | Provision for | Carrying amount |
impairment | impairment |
(2)Movements of major construction Items in progress
Presented in RMB
Item | Budget | Balance as at 31 Dec. 2021 | Additions | Transfers to fixed assets | Other deductions for the year | Balance as at 30 June 2022 | Percentage of actual cost to budget (%) | Item progress | Accumulated capitalised interest | Including: interest capitalised in 2022 | Interest rate for capitalisation in 2022(%) | Sources of funding |
(3)Provision for impairment of construction in progress
Presented in RMB
Item | Provision for current period | Reason for provision |
Note:
(4)Construction materials
Presented in RMB
Item | As at 30 June 2022 | As at 31 Dec. 2021 | ||||
Book balance | Provision for impairment | Carrying amount | Book balance | Provision for impairment | Carrying amount |
23. Productive living assets
(1)Measured at cost
□ Applicable √ Not applicable
(2)Measured at fair value
□ Applicable √ Not applicable
24. Oil and gas assets
□ Applicable √ Not applicable
25. Use rights assets
Presented in RMB
Item | Plant & buildings | Total |
Ⅰ. Cost | ||
1. Balance as at 31 Dec. 2021 | 431,779.61 | 431,779.61 |
2. Additions during the year | ||
3. Decrease during the year | ||
4.Balance as at 30 June 2022 | 431,779.61 | 431,779.61 |
II. Accumulated depreciation or amortization | ||
1. Balance as at 31 Dec. 2021 | 66,427.64 | 66,427.64 |
2. Charge for the year | ||
(1)Depreciated or amortised | 66,427.63 | 66,427.63 |
3. Reductions during the year | ||
(1)Disposals | ||
4.As at 30 June 2022 | 132,855.27 | 132,855.27 |
III. Provision for impairment | ||
1. Balance as at 31 Dec. 2021 | ||
2. Charge for the year | ||
(1) Provision | ||
3. Reductions for the year | ||
(1)Disposals | ||
4.As at 30 June 2022 | ||
IV. Carrying amounts | ||
1. As at 30 June 2022 | 298,924.34 | 298,924.34 |
2. As at 31 Dec 2021 | 365,351.97 | 365,351.97 |
Other notes:
26. Intangible assets
(1)Intangible assets
Presented in RMB
Item | Land use rights | Patent right | Know-how | Software | Total |
I.Cost | |||||
1. Balance as at 31 Dec. 2021 | |||||
2.Additions during the year | |||||
(1) Purchase | |||||
(2) Internal development | |||||
(3) Additions due to business combination | |||||
3. Decrease during the year | |||||
(1) Disposals | |||||
4.As at 30 June 2022 | |||||
II. Accumulative amortisation | |||||
1. Balance as at 31 Dec. 2021 |
2. Charge for the year | |||||
(1) Provision | |||||
3. Reductions for the year | |||||
(1) Disposals | |||||
4.As at 30 June 2022 | |||||
III. Provision for impairment | |||||
1. Balance as at 31 Dec. 2021 | |||||
2. Charge for the year | |||||
(1) Provision | |||||
3. Reductions for the year | |||||
(1) Disposals | |||||
4.As at 30 June 2022 | |||||
IV. Carrying amount | |||||
1. As at 30 June 2022 | |||||
2. As at 31 Dec. 2021 |
The carrying amount of intangible assets of the Group arising from internal development is XX% of the totalcarrying amount of intangible assets at the end of the year.
(2)Land use rights pending certificates of ownership
Presented in RMB
Item | Carrying amount | Reason why certificates of ownership are pending |
27. Development costs
Presented in RMB
Item | As at 31 Dec. 2021 | Additions during the year | Decreased during the year | As at 30 June 2022 | ||
Internal development | Others | Recognised as intangible assets | Recognised in profit or loss | |||
Total |
Other note:
28. Goodwill
(1)Book value of goodwill
Presented in RMB
Name of investee or events from which goodwill arose | As at 31 Dec. 2020 | Additions during the year | Decreases during the year | As at 30 June 2021 |
Business combination | Disposal | |||
Total |
(2)Provision for impairment of goodwill
Presented in RMB
Name of investee or events from which goodwill arose | As at 31 Dec. 2020 | Additions during the year | Decreases during the year | As at 30 June 2021 |
Provision | Disposal | |||
Total |
Information about the asset group or combination of asset groups in which the goodwill residesThe method of determining goodwill impairment and explain the process and key parameter of goodwillimpairment tests:
The impact of goodwill impairment tests:
Other note:
29. Long-term deferred expense
Presented in RMB
Item | As at 1 Jan. 2022 | Additions during the year | Amortisation for the year | Others decreases | As at 30 June 2022 |
Renovation Costs | 1,703,967.55 | 38,771.84 | 236,790.42 | 1,505,948.97 | |
Others | 460,995.63 | 179,091.09 | 98,923.72 | 541,163.00 | |
Total | 2,164,963.18 | 217,862.93 | 335,714.14 | 2,047,111.97 |
Other note:
30. Deferred tax assets/Deferred tax liabilities
(1)Deferred tax assets and deferred tax liabilities that are not offset
Presented in RMB
Item | As at 30 June 2022 | As at 31 Dec. 2021 | ||
Deductible or taxable temporary | Deferred tax assets | Deductible or taxable temporary | Deferred tax assets | |
Provisions for impairment of assets | 11,676,505.43 | 2,919,126.36 | 11,676,505.43 | 2,919,126.36 |
Unrealised profits of intra-group transactions | 41,759,852.68 | 10,439,963.17 | 48,439,321.68 | 12,109,830.42 |
Deductible tax losses | 60,853,662.72 | 15,213,415.68 | 60,853,662.72 | 15,213,415.68 |
Provision for land appreciation tax liquidation reserves | 495,662,113.28 | 123,915,528.32 | 537,081,594.36 | 134,270,398.59 |
Accrued Contractual cost | 22,029,322.92 | 5,507,330.73 | 22,029,322.92 | 5,507,330.73 |
Total | 631,981,457.03 | 157,995,364.26 | 680,080,407.11 | 170,020,101.78 |
(2)Deferred tax liabilities without offsetting
Presented in RMB
Item | As at 30 June 2022 | As at 31 Dec. 2021 | ||
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 | 6,920,726.92 | 1,730,181.73 | 18,858,463.59 | 4,714,615.90 |
Changes in fair value of held-for-trading financial assets | 11,828,130.44 | 2,957,032.61 | 11,828,130.44 | 2,957,032.61 |
Interest not due | 7,411,964.20 | 1,852,991.05 | 7,411,964.20 | 1,852,991.05 |
Total | 26,160,821.56 | 6,540,205.39 | 38,098,558.23 | 9,524,639.56 |
(3)Deferred tax assets or deferred tax liabilities disclosed as net amount after offsetting
Presented in RMB
Item | Amount of offsetting as at 30 June 2022 | Deferred tax assets or liabilities after offsetting as at 30 June 2022 | Amount of offsetting as at 31 Dec. 2021 | Deferred tax assets or liabilities after offsetting as at 31 Dec. 2021 |
Deferred tax assets | 157,995,364.26 | 170,020,101.78 | ||
Deferred tax liabilities | 6,540,205.39 | 9,524,639.56 |
(4)Details of unrecognized deferred tax assets
Presented in RMB
Item | As at 30 June 2022 | As at 31 Dec. 2021 |
Deductible tax losses | 5,122,462.04 | 10,875,646.42 |
Bad debt provision | 211,607,688.34 | 211,607,688.34 |
Provision for impairment of long-term equity | 220,084,700.95 | 220,084,700.95 |
Provision for impairment of investment real estate | 98,698,601.14 | 94,785,733.74 |
Total | 535,513,452.47 | 537,353,769.45 |
(5)Expiration of deductible tax losses for unrecognised deferred tax assets
Presented in RMB
Year | As at 30 June 2022 | As at 31 Dec. 2021 | Note |
2022 | 5,753,184.38 | ||
2023 | 4,085,485.24 | 4,085,485.24 | |
2024 | 688,456.49 | 688,456.49 | |
2025 | 1,629.25 | 1,629.25 | |
2026 | 346,891.06 | 346,891.06 | |
2027 |
Total | 5,122,462.04 | 10,875,646.42 |
Other note:
31. Other non-current assets
Presented in RMB
Item | As at 30 June 2022 | As at 31 Dec. 2021 | ||||
Book balance | Impairment loss | Book value | Book balance | Impairment loss | Book value |
32. Short-term loans
(1)Classification of short-term loans
Presented in RMB
Item | As at 30 June 2022 | As at 31 Dec. 2021 |
Pledge loans | 56,831,235.17 | 50,440,116.24 |
Total | 56,831,235.17 | 50,440,116.24 |
Note:
The ending balance of the loan consist of the factoring with accounts receivables and discounted commercialacceptance bill receivable which is not derecognized.
(2)Past due short-term loans
The total balance of past due short-term loans at the end of the year is RMB 0, including significant items areas follows:
Presented in RMB
Lender | As at 30 June 2022 | Interest rate | Past due period | Interest rate if overdue |
33. Trading financial liabilities
Presented in RMB
Item | Ending balance | Opening balance |
Including: | ||
Including: |
34. Derivative financial liabilities
Presented in RMB
Item | Ending balance | Opening balance |
35. Notes payable
Presented in RMB
Kind of Class | Ending balance | Opening balance |
Commercial acceptance bill | 235,818,710.20 | 247,376,403.56 |
Total | 235,818,710.20 | 247,376,403.56 |
The total amount of notes payable due and unpaid at the end of the current period is RMB 235,818,710.20.
36. Accounts payable
(1)Accounts payable
Presented in RMB
Item | As at 30 June 2022 | As at 31 Dec. 2021 |
Construction | 113,866,145.19 | 139,000,203.58 |
Others | 2,438,205.27 | 2,447,355.66 |
Total | 116,304,350.46 | 141,447,559.24 |
(2)the age of more than 1 year of important accounts payable
Presented in RMB
Item | As at 30 June 2022 | Reasons for non-payment or non-carry-forward |
Other note:
37. Advances from customers
(1)Advance payments
Presented in RMB
Item | As at 30 June 2022 | As at 31 Dec. 2021 |
Payment for goods-import and export | 4,218,370.69 | 4,218,370.69 |
Others | 2,260,567.86 | 2,193,056.35 |
Total | 6,478,938.55 | 6,411,427.04 |
(2)Important advances received over one year
Presented in RMB
Item | As at 30 June 2022 | Reasons for non-payment or non-carry-forward |
Other note:
38. Contractual liabilities
Presented in RMB
Item | As at 30 June 2022 | As at 31 Dec. 2021 |
Advance in house payment | 45,049,115.96 | 199,909,796.88 |
Advance in room fee | 55,794.14 | 55,693.20 |
Total | 45,104,910.10 | 199,965,490.08 |
Changes in amount and reason for the change in reporting period:
Presented in RMB
Item | Changes in the amount | Reason for change |
Advance in house payment | 154,860,680.92 | Real estate sales meet the income recognition conditions and carry forward income |
Total | 154,860,680.92 | —— |
The company needs to comply with the disclosure requirements of "real estate industry" in the "ShenzhenStock Exchange Listed Company Self-Regulatory Supervision Guidelines No. 3 - Industry InformationDisclosure"Receipt information of the top five projects in the pre-sale amount:
Presented in RMB
Serial number | Item | As at 31 Dec. 2021 | As at 30 June 2022 | Estimated completion time | Pre-sale ratio |
39. Payroll payable
(1)Employee benefits payable
Presented in RMB
Item | As at 31 Dec 2021 | Accrued during the year | Decreased during the year | As at 30 June 2022 |
Short-term employee benefits | 43,791,988.37 | 41,196,346.88 | 37,977,046.41 | 47,011,288.84 |
Post-employment benefits - defined contribution plans | 134,723.41 | 5,016,567.01 | 5,088,567.01 | 62,723.41 |
Dismissal benefits | 40,767.00 | 40,767.00 | ||
Total | 43,926,711.78 | 46,253,680.89 | 43,106,380.42 | 47,074,012.25 |
(2)Short-term employee benefits
Presented in RMB
Item | As at 31 Dec 2021 | Accrued during the year | Decreased during the year | As at 30 June 2022 |
1.Salaries, bonus, allowances | 43,636,961.65 | 34,700,963.17 | 31,439,529.29 | 46,898,395.53 |
2.Staff welfare | 35,800.00 | 1,374,023.67 | 1,409,823.67 | |
3.Social insurances | 1,833,773.17 | 1,833,773.17 | ||
Including: Medical insurance | 1,727,152.37 | 1,727,152.37 | ||
Work-related injury insurance | 21,000.23 | 21,000.23 |
Maternity insurance | 85,620.57 | 85,620.57 | ||
4. Housing Fund | 31,040.32 | 2,874,531.11 | 2,874,531.11 | 31,040.32 |
5. Labor union fees, staff and workers’ education fee | 88,186.40 | 413,055.76 | 419,389.17 | 81,852.99 |
Total | 43,791,988.37 | 41,196,346.88 | 37,977,046.41 | 47,011,288.84 |
(3)Post-employment benefits - defined contribution plans
Presented in RMB
Item | As at 31 Dec 2021 | Accrued during the year | Decreased during the year | As at 30 June 2022 |
Basic pension insurance | 72,000.00 | 3,195,002.46 | 3,267,002.46 | |
Unemployment insurance | 37,382.55 | 37,382.55 | ||
Annuity | 62,723.41 | 1,784,182.00 | 1,784,182.00 | 62,723.41 |
Total | 134,723.41 | 5,016,567.01 | 5,088,567.01 | 62,723.41 |
Note:
40.Tax payable
Presented in RMB
Item | As at 30 June 2022 | As at 31 Dec 2021 |
Value-added tax | 3,217,792.71 | 2,364,703.76 |
Corporate income tax | 156,224,499.29 | 55,260,539.21 |
Individual income tax | 864,126.83 | 741,740.25 |
City maintenance and construction tax | 447,699.69 | 243,387.84 |
Land appreciation tax | 139,983,067.54 | 541,127,363.69 |
Property tax | 4,958,754.25 | 262,015.56 |
Education surcharge | 241,467.45 | 105,021.26 |
local education surcharge | 148,652.48 | 56,806.29 |
Others | 510,169.96 | 379,294.62 |
Total | 306,596,230.20 | 600,540,872.48 |
Note:
41. Other payables
Presented in RMB
Item | As at 30 June 2022 | As at 31 Dec 2021 |
Interest payables | 16,535,277.94 | 16,535,277.94 |
Dividends payable | 89,026,080.00 | |
Other payables | 542,210,820.18 | 564,842,137.70 |
Total | 647,772,178.12 | 581,377,415.64 |
(1)Interest payable
Presented in RMB
Item | As at 30 June 2022 | As at 31 Dec 2021 |
Non-financial institution borrowing interest (interest payable to parent company) | 16,535,277.94 | 16,535,277.94 |
Total | 16,535,277.94 | 16,535,277.94 |
Significant overdue interest outstanding:
Presented in RMB
Debtor | Overdue amount | Overdue reason |
Shenzhen Investment Holdings Co., Ltd. | 16,535,277.94 | Defer payment |
Total | 16,535,277.94 |
Note:
The loan principal was paid in full on 22 Dec. 2016.
(2)Dividends payable
Presented in RMB
Item | As at 30 June 2022 | As at 31 Dec 2021 |
Common stock dividend | 89,026,080.00 | |
Total | 89,026,080.00 |
Reason for significant dividends not paid in 1 year:
The 2021 annual equity distribution plan has been reviewed and approved at the 2021 Annual GeneralMeeting of Shareholders held on May 17, 2022, and a total of RMB 89,026,080.00 of ordinary stock dividendsare to be distributed. As of the end of the reporting period, the above cash dividends have not beendistributed. The equity registration date of this equity distribution A shares is: July 4,2022, and the ex-rightsand ex-dividend date is: July 5,2022. The last trading day of B shares for this equity distribution is: July 4, 2022,the ex-rights and ex-dividend date is: July 5, 2022, and the share registration date is: July 7, 2022.
(3)Other payables
1)Other payables (by nature)
Presented in RMB
Item | As at 30 June 2022 | As at 31 Dec 2021 |
Accrued land appreciation tax | 5,898,328.06 | 36,447,111.94 |
Current account to Related parties | 236,183,176.92 | 215,460,862.07 |
Current account to Non-Related parties | 180,642,168.00 | 161,537,615.36 |
Deposits | 47,879,349.19 | 48,106,373.19 |
Others | 71,607,798.01 | 103,290,175.14 |
Total | 542,210,820.18 | 564,842,137.70 |
2)significant other payables aging over 1 year
Presented in RMB
Item | As at 30 June 2022 | Reason for no repayment |
42. Liabilities held for sale
Presented in RMB
Item | As at 30 June 2022 | As at 31 Dec 2021 |
Liabilities in disposal groups held for sale | ||
Including: Shenzhen Property Management Co., Ltd. | 65,752,452.06 | |
Total | 65,752,452.06 |
Note:
In order to optimize and adjust the industrial structure, on December 30, 2021, The Company and itssubsidiary Shenzhen Shenfang Investment Co., Ltd. signed the Equity Acquisition Agreement with ShenzhenInternational Trade Property Management Co., Ltd., and transferred the 100% equity of ShenzhenInternational Property Management Co., Ltd. in total to Shenzhen International Trade Property ManagementCo., Ltd. with a transfer price of RMB 196.6767 million. In the first half of 2022, according to the EquityAcquisition Agreement, the Company has received 90% of the consideration for the sale of the above-mentioned equity, completed the transfer procedures, and derecognized the relevant held-for-sale liabilities inits disposal group.
43. Non-current liabilities due within one year
Presented in RMB
Item | As at 30 June 2022 | As at 31 Dec 2021 |
Lease liabilities due within one year | 103,779.30 | 83,023.44 |
Total | 103,779.30 | 83,023.44 |
Note:
44. Other current liabilities
Presented in RMB
Item | As at 30 June 2022 | As at 31 Dec 2021 |
Others | 2,352,351.37 | 8,196,849.13 |
Total | 2,352,351.37 | 8,196,849.13 |
Movement in Short-term bonds payable:
Presented in RMB
Name of the bond | Face value | Release date | The bond deadline | issuance | As at 31 Dec 2021 | The current issue | Interest is accrued at face value | Amortization of excess discount | The current pay | As at 30 June 2022 |
Note:
45. Long-term loans
(1)Long-term loans classification
Presented in RMB
Item | As at 30 June 2022 | As at 31 Dec 2021 |
Note:
Additional notes, including interest rate ranges:
46. Debentures payable
(1)Debentures payable
Presented in RMB
Item | As at 30 June 2022 | As at 31 Dec 2021 |
(2)Changes in increase or decrease of bonds payable (excluding preferred stock, perpetual debt andother financial instruments classified as financial liabilities)
Presented in RMB
Name of the bond | Face value | Release date | The bond deadline | issuance | As at 31 Dec. 20 | The current issue | Interest is accrued at face value | Amortization of excess discount | The current pay | As at 30 June 2021 | |
Total | -- | -- | -- |
(3)Convertible corporate bonds(Convertible company bonds conversion conditions, conversion time)
(4)Other financial instruments classified as financial liabilities
Basic information on preferred stock, perpetual debt and other financial instruments outstanding at the end ofthe period:
Statement of changes in preferred shares, perpetual bonds and other financial instruments outstanding at theend of the period:
Presented in RMB
An outstanding financial instrument | 2021.12.31 | Increase in current period | The reduced in current period | 2022.6.30 | ||||
The number of | The book value | The number of | The book value | The number of | The book value | The number of | The book value |
Explanation of the basis for classifying other financial instruments as financial liabilities:
other note:
47. Lease liabilities
Presented in RMB
Item | As at 30 June 2022 | As at 31 Dec 2021 |
Plant & buildings | 90,440.36 | 125,920.77 |
Total | 90,440.36 | 125,920.77 |
other note:
48. Long-term payables
Presented in RMB
Item | As at 30 June 2022 | As at 31 Dec 2021 |
(1)Long-term payables (shown by nature of payments)
Presented in RMB
Item | As at 30 June 2022 | As at 31 Dec 2021 |
other note:
(2)Special payables
Presented in RMB
Item | As at 31 Dec 2021 | Increase in current | The reduced | As at 30 June 2022 | Reasons for the formation |
other note:
49. Long-term employee benefits payable
(1)Long-term employee benefits payable
Presented in RMB
Item | As at 30 June 2022 | As at 31 Dec 2021 |
(2)Set the changes of benefit plan
Set the present value of the benefit plan obligation:
Presented in RMB
Item | This amount | The amount of the previous period |
Plan assets
Presented in RMB
Item | This amount | The amount of the previous period |
Defined benefit plan net liabilities (net assets) :
Presented in RMB
Item | This amount | The amount of the previous period |
The content, causes, characteristics and related risks of the defined benefit plan and the influence of thebenefit plan on the amount, time and uncertainty of the Group's future cash flow.Actuarial hypothesis and Sensitivity analysis of setting benefit plan:
Other note:
50. Provisions
Presented in RMB
Item | As at 30 June 2022 | As at 31 Dec 2021 | Causes |
Other note:
51. Deferred income
Presented in RMB
Item | As at 31 Dec 2021 | Additions during the year | Reductions during the year | As at 30 June 2022 | Reason for deferral |
details of deferred income – government grant:
Presented in RMB
species | As at 31 Dec 2021 | New subsidy amount of this period | Amount booked into non-operating income for the current period | Amount booked into other income for the current period | The amount of the current period carried forward to reduce related costs | other change | As at 30 June 2022 | Relating to assets/earnings |
52. Other non-current liabilities
Presented in RMB
Item | As at 30 June 2022 | As at 31 Dec 2021 |
53. Share capital
Presented in RMB
As at 31 Dec 2021 | Increase or decrease of current period (+, -) | As at 30 June 2022 | |||||
New shares | Stock dividand | Conversion from reserve to shares | Others | Subtotal | |||
The total number of | 1,011,660,000.00 | 1,011,660,000.00 |
shares
Other note:
54. Other equity instruments
(1)Basic information on preferred stock, perpetual debt and other financial instruments outstanding at theend of the period:
(2)movement on preferred stock, perpetual debt and other financial instruments outstanding at the end ofthe period:
Presented in RMB
issued Financial instruments | As at 31 Dec 2021 | Increase in | The reduced | As at 30 June 2022 | ||||
Numbers | Book value | Numbers | Book value | Numbers | Book value | Numbers | Book value |
the change of the increase or decrease of other equity instruments in the current period, the reasons for thechange, and the relevant accounting treatment basis.
55. Capital reserves
Presented in RMB
Item | As at 31 Dec 2021 | Increase in current period | The reduced in current period | As at 30 June 2022 |
Share premium | 557,433,036.93 | 557,433,036.93 | ||
Other capital reserves | 420,811,873.18 | 420,811,873.18 | ||
Total | 978,244,910.11 | 978,244,910.11 |
Reason for movements in capital reserves:
56. Inventory stocks
Presente
Item | As at 31 Dec 2021 | Increase in current period | The reduced in current period | As at 30 June 2022 |
Reason for movements in capital reserves:
57. Other comprehensive income
Presented in RMB
Item | As at 31 Dec 2021 | Current amount | As at 30 June 2022 | |||||
The current income tax before the | Less: included in other comprehensive income in | Less: included in other comprehensive income in | Less: Income tax expense | Attributa ble to the parent company after tax | Attributa ble to minority sharehold ers after tax |
amount | the previous period and transferred to profit or loss in the current period | the previous period and transferred to retained earnings in the current period | ||||||
I. Other comprehensive income that cannot be reclassified into profits and losses | 14,143,847.69 | 5,175,152.79 | 11,449,773.26 | -6,274,620.47 | 7,869,227.22 | |||
Changes in the fair value of other equity instrument investments | 14,143,847.69 | 5,175,152.79 | 11,449,773.26 | -6,274,620.47 | 7,869,227.22 | |||
II.Other comprehensive income which is reclassified into profit and loss | 21,945,116.26 | -2,818,535.08 | -2,818,535.08 | -1,207,943.61 | 19,126,581.18 | |||
Translation differences arising from translation of foreign currency financial statements | 21,945,116.26 | -2,818,535.08 | -2,818,535.08 | -1,207,943.61 | 19,126,581.18 | |||
Total | 36,088,96 | 2,356,617 | 11,449,77 | - | - | 26,995,80 |
3.95 | .71 | 3.26 | 9,093,155.55 | 1,207,943.61 | 8.40 |
Other notes, including the adjustment of the effective portion of the cash flow hedging gain or loss to theinitially recognised amount of the hedged item:
58. Specific reserve
Presented in RMB
Item | As at 31 Dec 2021 | Additions during the year | Reductions during the year | As at 30 June 2022 |
Reason for changes in specific reserve in current period:
59. Surplus reserve
Presented in RMB
Item | As at 31 Dec 2021 | Additions during the year | Reductions during the year | As at 30 June 2022 |
Statutory surplus reserve | 241,144,854.93 | 241,144,854.93 | ||
Total | 241,144,854.93 | 241,144,854.93 |
Note:
60. Retained earnings
Presented in RMB
Item | Year ended 30 June 2022 | Year ended 30 June 2021 |
Before adjustment: Retained earnings at the end of the previous period | 1,671,121,562.98 | 1,560,720,254.31 |
After adjustment: Retained earnings at the beginning of the reporting period | 1,671,121,562.98 | 1,560,720,254.31 |
Plus:Net profits for the year attributable to shareholders of the Group | 145,128,330.14 | 132,447,122.14 |
Dividends payable to ordinary shares | 89,026,080.00 | 88,014,420.00 |
Plus: Disposal of other equity instrument investments | 11,449,773.26 | |
Retained earnings at the end of the reporting period | 1,738,673,586.38 | 1,605,152,956.45 |
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.
61. Operation Income and Costs
Presented in RMB
Item | Year ended 30 June 2022 | Year ended 30 June 2021 | ||
Income | costs | Income | costs | |
Principal activities | 364,450,882.21 | 238,944,330.95 | 689,047,393.48 | 330,844,214.47 |
Other operating activities | 1,733,616.69 | 940,941.77 | 5,550,824.99 | 1,131,464.08 |
Total | 366,184,498.90 | 239,885,272.72 | 694,598,218.47 | 331,975,678.55 |
Income related information:
Presented in RMB
Contract type | Segment 1 | Segment 2 | Total | |
Product Types | ||||
including: | ||||
By business area | ||||
including: | ||||
Market or customer type | ||||
including: | ||||
Type of contract | ||||
including: | ||||
Sort by time of goods transfer | ||||
including: | ||||
Sort by contract term | ||||
including: | ||||
By sales channel | ||||
including: | ||||
Total |
Information related to performance obligations:
There are four criteria need to be satisfied when the group recognizing the revenue from property sales: (1)the sale contract has been signed and filed with the land department; (2) the property development iscompleted and pass the acceptance; (3) For Lump-sum payment, revenue is recognized by the group when theconsideration is fully received. For instalment payment, revenue is recognized when the first installment hasbeen received and the bank mortgage approval procedures have been completed. (4) completed theprocedures for entering the partnership in accordance with the requirements stipulated in sale contract.
Information related to the transaction price allocated to the remaining performance obligations:
At the end of the reporting period, the amount of revenue corresponding to the performance obligations thathave been signed but not yet performed or not yet completed is RMB 465,523,537.18 yuan, Among them,RMB 184,756,994.12 yuan is expected to be recognized as revenue in 2022, RMB 167,384,668.36 is expected
to be recognized as revenue in the year 2023, and RMB 79,140,635.64 yuan is expected to be recognized asrevenue in the year 2024 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 | ChuanQi DongHu Building | 146,364,854.28 |
2 | TianYue Bay No.2 | 42,965,973.25 |
3 | TianYue Bay No.1 | 38,220,407.83 |
4 | YueJing dongfang Project | 858,036.19 |
5 | Shengfang CuiLin Building | 0 |
62. Taxes and surcharges
Presented in RMB
Item | Current amount | Amount of previous period |
Urban maintenance and construction tax | 1,170,922.86 | 2,116,459.71 |
Education surcharge | 502,679.96 | 939,297.22 |
Property tax | 4,650,644.11 | 4,661,338.71 |
Land use tax | 322,273.95 | 53,795.62 |
Vehicle and vessel usage tax | 2,040.00 | 6,030.00 |
Stamp duty | 229,657.72 | 380,892.76 |
Land appreciation tax | 49,721,941.06 | 138,238,943.94 |
Local education surcharge | 337,561.61 | 569,112.63 |
Embankment protection fees | 43,860.73 | 393,247.80 |
Total | 56,981,582.00 | 147,359,118.39 |
Note:
63. Selling and distribution expense
Presented in RMB
Item | Current amount | Amount of previous period |
Employee benefits | 2,722,521.43 | 1,989,941.91 |
Advertising expenses | 1,366,337.04 | 1,917,769.32 |
Entertainment expenses | 246,246.42 | 250,432.76 |
commissions | 3,940,062.31 | 9,360,189.39 |
Others | 2,450,864.13 | 3,297,266.68 |
Total | 10,726,031.33 | 16,815,600.06 |
Note:
64. General and administrative expenses
Presented in RMB
Item | Current amount | Amount of previous period |
Employee benefits | 25,452,857.55 | 30,479,393.18 |
Depreciation | 1,296,844.73 | 1,394,723.83 |
Entertainment expenses | 1,181,431.41 | 1,342,134.54 |
Professional fee | 932,733.24 | 980,491.44 |
Travel expense | 21,150.06 | 33,943.63 |
Office expenses | 826,098.42 | 998,969.38 |
Maintenance expenses | 343,507.92 | 395,206.71 |
Utilities | 164,773.58 | 278,307.83 |
Amortization | 194,229.28 | 227,695.45 |
Others | 2,599,674.33 | 4,168,718.23 |
Total | 33,013,300.52 | 40,299,584.22 |
Note:
65. Research and development expense
Presented in RMB
Item | Current amount | Amount of previous period |
Note:
66. Financial expense
Presented in RMB
Item | Current amount | Amount of previous period |
Interest expense | 89,286.77 | |
Less: Interest income | 2,903,815.84 | 16,398,025.57 |
Less: capitalized interest | 89,286.77 | |
Exchange losses/-gains | -811,005.72 | -201,900.59 |
Less: Exchange losses and gains capitalized | ||
Others | 113,267.24 | 185,438.57 |
Total | -3,601,554.32 | -16,414,487.59 |
Note:
67. Other Income
Presented in RMB
Item (Source of other income) | Current amount | Amount of previous period |
VAT relief | 236,488.67 | 633,733.52 |
Training allowance | 33,625.00 | 0.00 |
Public health subsidy | 0.00 | 10,000.00 |
Employment Support Subsidy | 10,000.00 | 0.00 |
Stable Job Subsidy | 123,118.76 | 0.00 |
Total | 403,232.43 | 643,733.52 |
68. Investment Income
Presented in RMB
Item | Current amount | Amount of previous period |
Disposal of held-for-trading financial assets | 159,619.01 | |
Dividend income from other equity instrument investments during the holding period | 813,960.00 | |
Debt Restructuring Proceeds | 2,489,520.46 | |
Disposal of subsidiaries | 163,352,077.77 | |
Total | 166,815,177.24 |
Note:
69. Net exposure hedging income
Presented in RMB
Item | Current amount | Amount of previous period |
70. Income from changes in fair value
Presented in RMB
The source of the fair value change income | Current amount | Amount of previous period |
Trading financial assets | 4,963,730.62 | 2,329,484.00 |
Total | 4,963,730.62 | 2,329,484.00 |
Note:
The group purchased monetary fund at 13 billion yuan in early June 2021 and one month income is4,963,730.62 yuan.
71. Credit impairment loss
Presented in RMB
Item | Current amount | Amount of previous period |
Bad debt losses on other receivables | -18,503.49 | 1,142,580.28 |
Reversal of impairment of accounts receivable | 149,819.69 | |
Total | 131,316.20 | 1,142,580.28 |
Other note:
72. Impairment loss of assets
Presented in RMB
Item | Current amount | Amount of previous period |
Other note:
73. Income from asset disposal
Presented in RMB
Source of asset disposal | Current amount | Amount of previous period |
74. Non-operating income
Presented in RMB
Item | Current amount | Amount of previous period | Amount booked into current non-recurring profits and losses |
Penalty/Default Income | 550,000.00 | 1,352,709.50 | 550,000.00 |
Others | 2,207.24 | 18,048.38 | 2,207.24 |
Total | 552,207.24 | 1,370,757.88 | 552,207.24 |
Government subsidy counted to the current profit and loss:
Presented in RMB
Item | Issuer | Reason for issue | Subsidy nature | Does the subsidy affect the profit and loss of the year | Whether special subsidy | Current amount | Amount of previous period | Relating to assets or earnings |
Other note:
75. Non-operating expenses
Presented in RMB
Item | Current amount | Amount of previous period | Amount counted to the current non-operating gain and loss |
Non-monetary asset exchange losses | 1,892.06 | 1,892.06 | |
Donations provided | 43,357.00 | 43,357.00 | |
Others | 50.00 | 25,246.47 | 50.00 |
Total | 45,299.06 | 25,246.47 | 45,299.06 |
Note:
76. Income to expense
(1) Details of income tax expenses
Presented in RMB
Item | Current amount | Amount of previous period |
Current tax expense for the year | 59,036,968.69 | 47,841,099.11 |
Total | 59,036,968.69 | 47,841,099.11 |
(2)Reconciliation between income tax expenses and accounting profit is as follows:
Presented in RMB
Item | Current amount |
Profits/losses before tax | 201,997,231.32 |
Expected income tax expenses at applicable tax rate | 50,499,307.83 |
Effect of non-deductible costs, expenses and losses | 8,537,660.90 |
Income tax expenses | 59,036,968.69 |
Note:
77. Other comprehensive income
Refer to Note VII. 57 for details.
78. Cash Flow Statement
(1) Proceeds from operating activities
Presented in RMB
Item | Current amount | Amount of previous period |
Interest income | 2,805,382.05 | 16,145,175.19 |
Deposits and security deposits | 244,977.70 | 4,840,752.27 |
Maintenance Fund | 46,833.81 | 48,921.12 |
Collecting fee for certifications on behalf | 680,720.00 | 196,503.48 |
Others | 70,573,645.41 | 226,919,277.33 |
Total | 74,351,558.97 | 248,150,629.39 |
Note:
(2) Payment for other operating activities
Presented in RMB
Item | Current amount | Amount of previous period |
Payment for general and administrative expenses | 3,613,201.28 | 5,877,859.14 |
Payment for selling and distribution expenses | 2,931,332.85 | 12,305,839.37 |
Deposits and security deposits | 472,001.70 | 3,809,037.95 |
Paying fee for certifications on behalf | 17,696.81 | 46,643.34 |
Others | 181,834,327.89 | 324,877,972.54 |
Total | 188,868,560.53 | 346,917,352.34 |
Note:
(3) Proceeds from other investing activities
Presented in RMB
Item | Current amount | Amount of previous period |
Cash recovered from Monetary Fund | 115,000,000.00 | |
Total | 115,000,000.00 |
Note:
(4) Payment for other investing activities
Presented in RMB
Item | Current amount | Amount of previous period |
Purchasing monetary fund | 1,300,000,000.00 | |
Total | 1,300,000,000.00 |
Note:
(5) Proceeds from other financing activities
Presented in RMB
Item | Current amount | Amount of previous period |
Borrowing from minority shareholders | 331,178,702.21 | |
Total | 331,178,702.21 |
Note:
(6) Payment for other financing activitie
79. Supplementary information of the cash flow statement
(1) supplementary information of the cash flow statement
Presented in RMB
Supplementary information | Current amount | Amount of previous period |
1. Adjust net profit to cash flow from operating activities: | ||
Net profit | 142,960,262.63 | 132,182,934.94 |
Add: Provisions for impairment of assets | ||
credit impairment loss | 131,316.20 | 1,142,580.28 |
Depreciation of Fixed Assets, Depreciation of Investment Real Estate, Depreciation of Oil and Gas Assets, Depreciation of Productive Biological Assets | 1,362,127.04 | 1,894,530.05 |
Depreciation of investment | 12,725,918.76 | 11,663,350.76 |
property | ||
Depreciation of Right-of-use Assets | 66,427.63 | |
Amortization of intangible assets | ||
Amortization of long-term deffered expenses | 183,931.86 | 59,919.67 |
Loss on disposal of fixed assets, intangible assets and other long-term assets (marked with "-" for gains) | -10,871.50 | |
Loss on the scrapping of fixed assets (marked with "-" for income) | 1,892.06 | 1,598.00 |
Loss from changes in fair value (marked with "-" for earnings) | -4,963,730.62 | -2,329,484.00 |
Financial expenses (revenue marked with "-") | -811,005.72 | -2,274,549.67 |
Loss on investment (marked with "-" for income) | -166,815,177.24 | |
Deferred tax assets decreased (marked with "-" for increase) | 12,024,737.52 | 8,457,756.18 |
Deferred tax liability increased (marked with "-" for decrease) | -2,984,434.17 | |
Decrease in stock (marked with "-" for increase) | -35,445,828.25 | -799,115,376.98 |
Decrease of operating receivable items (marked with "-" for increase) | -53,847,916.31 | 200,437,421.26 |
Increase in operational payable items (marked with "-" for decrease) | -452,703,664.73 | 162,251,243.69 |
Other | 98,195.86 | |
Net cash flow from operating activities | -548,115,143.34 | -285,540,751.46 |
2. Major investment and financing activities that do not involve cash receipts and expenditures: | ||
Debt to capital | ||
A convertible corporate bond maturing within one year | ||
Leasing of fixed assets through financing | ||
3. Net changes in cash and cash equivalents: | ||
Ending balance of cash | 319,956,294.72 | 876,192,880.75 |
Minus: Opening balance of cash | 612,293,635.15 | 2,669,103,926.82 |
Plus: Ending balance of cash equivalents |
Minus: Beginning balance of cash equivalents | ||
Net increase in cash and cash equivalents | -292,337,340.43 | -1,792,911,046.07 |
(2) The net cash of the subsidiary paid in the current period
(3) Net cash received for disposal of subsidiaries during the current period
Presented in RMB
Amount | |
Cash and cash equivalents received from disposal of subsidiaries during current period | 177,009,030.00 |
Including: | |
Minus: Cash and cash equivalents held by the company on the date of loss of control | 55,358,474.26 |
Including: | |
Including: | |
Net cash received from disposal of subsidiaries | 121,650,555.74 |
Note:
(4) Composition of cash and cash equivalents
Presented in RMB
Item | Ending balance | Opening balance |
Cash at bank and on hand | 319,956,294.72 | 612,293,635.15 |
Including:Cash on hand | 9,262.03 | 12,082.00 |
Bank deposits available on demand | 262,947,032.69 | 372,181,553.15 |
Other monetary funds available on demand | 57,000,000.00 | 240,100,000.00 |
Cash and cash equivalents at the end of the year | 319,956,294.72 | 612,293,635.15 |
Note:Bank deposits available on demand at the beginning of the year include monetary funds of RMB64,521,214.48 classified as assets held for sale.
80. Notes for items in the statement of changes in shareholders' equity
81. Assets whose ownership or use rights are restricted
Presented in RMB
Item | Ending book value | Limited reason |
Cash at bank and on hand | 5,674,439.78 | Shenzhen Longgang District Urban Renewal Project and Surrounding Public Facilities Project-Construction Funds |
Inventories | 965,000,000.00 | Land mortgage of project development loan |
Accounts receivable | 56,831,235.17 | Short-term loan pledge |
Total | 1,027,505,674.95 |
Note:
82. Foreign currency monetary items
(1) Foreign currency monetary items
Presented in RMB
Item | Ending Foreign Currency Balance | Discount rate | Balance converted into RMB at the end |
Monetary fund | |||
Including:US dollar | 1,136.01 | 6.6850 | 7,594.23 |
The euro | |||
Hong Kong dollars | 6,667,312.14 | 0.8517 | 5,678,283.05 |
Accounts receivable | |||
Including:US dollar | |||
The euro | |||
Hong Kong dollars | 4,905,150.10 | 0.8517 | 4,177,520.13 |
Long-term borrowing | |||
Including:US dollar | |||
The euro | |||
Hong Kong dollars | |||
Other receivables | |||
Including:US dollar | |||
Hong Kong dollars | 20,165,086.70 | 0.8517 | 17,173,797.72 |
Other payables | |||
Including:US dollar | 655,299.33 | 6.6850 | 4,380,677.84 |
Hong Kong dollars |
Note:The company’s important overseas business entities are Great Wall Real Estate Co., Ltd. and XinfengEnterprise Co., Ltd. Since Great Wall Real Estate Co., Ltd. is mainly operating in the United States, it choosesthe US dollar as the functional currency; Xinfeng Enterprise Co., Ltd. is an investment company, the mainbusiness activities of its investment entities are all in mainland China, and the RMB is used as the standardcurrency for bookkeeping, so it chooses RMB as the standard currency for bookkeeping.
(2) Note to overseas operating entities, including important overseas operating entities, which should bedisclosed about its principal business place, function currency for bookkeeping and basis for the choice. Incase of any change in function currency, the cause should be disclosed.
□ Applicable √ Not Applicable
83. Hedging
The qualitative and quantitative information of the hedge item, the related hedge instrument and the hedgedrisk shall be disclosed according to the hedge Types.
84. Government subsidies
(1) Basic information of government subsidies
(2) Refunding of the government subsidies
□ Applicable √ Not Applicable
85. Other
VIII. Change of consolidation scope
1. Business combinations involving enterprises not under common control
(1) Business combinations involving enterprises not under common control occurred during the year
(2) Acquisition cost and goodwill
(3) Identifiable assets and liabilities of the acquiree at the acquisition date
(4) Gain or loss from remeasurement of equity interests held prior to acquisition date to fair valueWhether there are multiple transactions to achieve the business merger step by step and gain control duringthe reporting 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
(2) Combination cost
(3) Book value of merged party’s assets and liabilities in combination date
3. Reverse buying
4. Disposal of subsidiaries
Whether subsidiaries reduced due to single disposal until loss of control
√ Yes □No
Presented in RMB
Name of the Subsidiary | Equity disposal price | Equity disposl proportion | Equity disposal method | Point of loss control | Basis for the point of loss of control | The difference between the disposal price and the share of the subsidiary's net assets at the consolidated financial statement corresponding to the disposal investment | Proportion of remaining equity at the date of loss of control | Book value of remaining equity on the date of loss of control | Fair value of remaining equity at the date of loss of control | Gain or loss from remeasurement of remaining equity at fair value | Method and main assumptions of fair value of remaining equity on the date of loss of control | Amount of other comprehensive income related to the original subsidiary's equity investment transferred into investment profit or loss |
Shenzhen City Property Management Ltd. | 196,676,700.00 | 100.00% | Transfer agreement | February 11, 2022 | Complete the Industrial and commercial registratio | 163,352,077.77 |
n ofchanges
Note:As of the end of the reporting period, the audit of the operating results of the disposed subsidiaryrelated to the above equity transfer during the transition period has not been completed, but it is notexpected to have a significant impact on the investment income generated by the disposal of the subsidiary.
Whether exist multiple transactions to dispose of the equity step by step to the loss of control and thereduction of the subsidiary
□ Yes √ No
5. Other reason for change of consolidation scope
6. Other
IX. Interest in other entities
1. Interests in subsidiaries
(1) Composition of the Group
Name of the Subsidiary | Principal place of business | Registration place | Business nature | Shareholding % | Acquisition method | |
Direct | Indirect | |||||
Shenzhen City SPG Long Gang Development Ltd. | Shenzhen | Shenzhen | Real estate development | 95.00% | 5.00% | Acquiring through establishment or investment |
American Great Wall Co., Ltd | U.S. | U.S. | Real estate development | 70.00% | Acquiring through establishment or investment | |
Shenzhen Petrel Hotel Co. Ltd. | Shenzhen | Shenzhen | Hotel Services | 68.10% | 31.90% | Acquiring through establishment or investment |
Shenzhen Zhen Tung Engineering Ltd. | Shenzhen | Shenzhen | Installation and maintenance | 73.00% | 27.00% | Acquiring through establishment or investment |
Shenzhen City We Gen Construction Management Ltd. | Shenzhen | Shenzhen | Supervision | 75.00% | 25.00% | Acquiring through establishment or investment |
Shenzhen Lain Hua | Shenzhen | Shenzhen | Mechanical & | 95.00% | 5.00% | Acquiring |
Industry and Trading Co., Ltd. | Electrical device installation | through establishment or investment | ||||
Fresh Peak Zhiye Co., Ltd. | Hong Kong | Hong Kong | Investment and management | 100.00% | Acquiring through establishment or investment | |
Xin Feng Enterprise Co., Ltd. | Hong Kong | Hong Kong | Investment and management | 100.00% | Acquiring through establishment or investment | |
Shenzhen City Shenfang Free Trade Trading Ltd. | Shenzhen | Shenzhen | Commercial trade | 95.00% | 5.00% | Acquiring through establishment or investment |
Shenzhen City Shenfang Investment Ltd. | Shenzhen | Shenzhen | Investment | 90.00% | 10.00% | Acquiring through establishment or investment |
Shenzhen Special Economic Zone Real Estate (Group) Guangzhou Property and Estate Co., Ltd. | Shenzhen | Shenzhen | Real estate development | 95.00% | 5.00% | Acquiring through establishment or investment |
Beijing fresh peak property development management limited company | Beijing | Beijing | Real estate | 75.00% | 25.00% | Acquiring through establishment or investment |
Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd. | Huizhou | Huizhou | Real estate | 51.00% | Acquiring through establishment or investment | |
Shenzhen Shenfang Chuanqi Real Estate Development Co., Ltd. | Shenzhen | Shenzhen | Real estate | 100.00% | Acquiring through establishment or investment |
Note to shareholding ratio is different from the voting ratio in subsidiaries:
The basis of holding half or less of the voting rights but still controlling the investee and holding more than 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 note:
① In consolidation scope, there are five subsidiaries in “revoked but not cancelled” condition: Beijing SPG
Property Management Limited, Guangzhou Huangpu Xizun real estate limited company, Shenzhen SpecialEconomic Zone Real Estate (Group) Guangzhou Property and Estate Co., Ltd., Fresh Peak Real Estate Dev.
Construction (Wuhan) Co. Ltd. and Beijing Shenfang Property Management Co., Ltd. They are presentedon the basis of discontinued operations; these five subsidiaries have made full provision for impairment ofdebt for the companies outside the consolidation scope.
② The cancelled, revoked and closed subsidiaries of the Company that are not included in the scope ofconsolidation are as follows:
Name of the Subsidiary | Principal place of business | Place of registration | Business nature | Shareholding proportion | Acquisition method | |
Direct | Indirect | |||||
Shenzhen Shenfang Department Store Co.Ltd | Shenzhen | Shenzhen | Commercial trade | 95.00 | 5.00 | Acquiring through establishment or investment |
Paklid Limited | Hong Kong | Hong Kong | Commercial trade | 60.00 | 40.00 | Acquiring through establishment or investment |
Bekaton Property Limited | Australia | Australia | Real estate | 60.00 | -- | Acquiring through establishment or investment |
Canada Great Wall (Vancouver) | Canada | Canada | Real estate | -- | 60.00 | Acquiring through establishment or investment |
Guangdong Fengkai County Lianfeng Cement Manufacturing Co., Ltd. | Fengkai Guangdong | Fengkai Guangdong | Manufacturing | -- | 90.00 | Acquiring through establishment or investment |
Jiangmen Xinjiang Real Estate Co., Ltd | Jiangmen Guangdong | Jiangmen Guangdong | Real estate | -- | 90.91 | Acquiring through establishment or investment |
Xi’an Fresh Peak Property Trading Co., Ltd | Xi’an Shanxi | Xi’an Shanxi | Real estate | -- | 67.00 | Acquiring through establishment or investment |
Shenxi Limited | Shenzhen | Shenzhen | Building Decoration | 70.00 | -- | Acquiring through establishment or investment |
Shenzhen Zhentong New Electromechanical Industry Development Co., Ltd. | Shenzhen | Shenzhen | Mechanical and electrical engineering | 95.00 | 5.00 | Acquiring through establishment or investment |
Shenzhen Real Estate Electromechanical Management Company | Shenzhen | Shenzhen | Electrome chanical Management | 100.00 | -- | Acquiring through establishment or investment |
Shenzhen Nanyang Hotel Co., Ltd. | Shenzhen | Shenzhen | Hotel Management | 95.00 | 5.00 | Acquiring through establishment or |
investment | ||||||
Shenzhen Kangtailong Industrial Electric Cooker Co., Ltd. | Shenzhen | Shenzhen | Industrial manufactu ring | -- | 100.00 | Acquiring through establishment or investment |
Shenzhen Longgang Henggang Huagang Industrial Co., Ltd. | Shenzhen | Shenzhen | Industrial Investment | -- | 79.92 | Acquiring through establishment or investment |
Note:
1、 Shenzhen Shenfang Department Store Co. Ltd called a shareholder meeting on 29 October 2007, decided
to terminate the business and establish a liquidation team to conduct the liquidation. The liquidationteam issued a liquidation report on 7 December, 2007.
2、 Paklid Limited, Bekaton Property Limited and Canada Great Wall (Vancouver) were established by the
group abroad in the early years. On 13 December 2000, the group held a board meeting and decided toliquidate these three companies. Bekaton Property Limited and Canada Great Wall (Vancouver) have beenwinded up.
3、 All assets from Guangdong Fengkai County Lianfeng Cement Manufacturing Co., Ltd. (including tangibleand intangible asset) were auctioned by the court on 22 January 2019, becoming a shell company.
4、 Shenxi Limited was a holding subsidiary of Shenzhen Tefa Real Estate Consolidated Services Co., Ltd. whichis a deregistered subsidiary of the group. By the Group’s announcement, “The notice on the merger ofShenzhen Zhen Tung Engineering Ltd and Shenxi Limited” (Shenfang [1997] No.19), all businesses formShenxi Limited were undertaken by Shenzhen Zhen Tung Engineering Ltd and Shenxi Limited and wererevoked on 8 February 2002.The group could no longer effectively control these invested companies which have not been included in theconsolidation scope were either been cancelled or ceased operation many years ago, and were no longer exist.According to “Accounting Standard for Business Enterprises No. 33-Consolidated Financial Statements”, thegroup already accrued full amount of impairment for the book value of the net investment in abovecompanies which are not included in the consolidated scope.
(2) Material non-wholly owned subsidiaries
Presented in RMB
Name of the Subsidiary | Proportion of ownership interest held by non-controlling interests % | Profit or loss allocated to non-controlling int erests during the year | Dividend declared to non-controlling shareholders during the year | Balance of non-controlling interests as at 2022.6.30 |
Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd. | 49.00% | -2,016,517.73 | 426,682,372.87 | |
Great Wall Estate Co., Inc | 30.00% | -151,549.78 | -20,892,599.12 | |
Fresh Peak Investment Ltd | 45.00% | -116,180,387.59 |
Barenie Co. Ltd. | 20.00% | -3,889,709.36 |
Note to shareholding ratio of minority shareholder is different from the voting ratio:
Other note:
(3) Key financial information about material non-wholly owned subsidiaries
Presented in RMB
Name | As at 30 June 2022 | As at 1 January 2022 | ||||||||||
Current assets | Non-curr ent assets | Total assets | Current liabilities | Non-curr ent liabilities | Total liabilities | Current assets | Non-curr ent assets | Total assets | Current liabilities | Non-curr ent liabilities | Total liabilities | |
Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd. | 1,276,589,293.76 | 3,640,520.63 | 1,280,229,814.39 | 1,291,766,677.69 | 90,440.36 | 1,291,857,118.05 | 1,190,571,804.12 | 3,795,473.63 | 1,194,367,277.75 | 1,201,698,603.08 | 125,920.77 | 1,201,824,523.85 |
Great Wall Estate Co., Inc | 7,303.30 | 18,470,334.12 | 18,477,637.42 | 103,913,816.77 | 0.00 | 103,913,816.77 | 585,669.06 | 17,615,753.07 | 18,201,422.13 | 99,105,956.86 | 99,105,956.86 | |
Fresh Peak Investment Ltd | 4,748.07 | 36,016.90 | 40,764.97 | 258,219,487.07 | 258,219,487.07 | 4,748.07 | 36,016.90 | 40,764.97 | 258,219,487.07 | 258,219,487.07 | ||
Barenie Co. Ltd. | 957.41 | 957.41 | 32,908,874.92 | 32,908,874.92 | 957.41 | 957.41 | 32,908,874.92 | 32,908,874.92 |
Presented in RMB
Name of the Subsidiary | Current amount | Amount of previous period | ||||||
Operating income | Net profit | Total compre hensive inco | Cash flows from operating | Operating income | Net profit | Total compre hensive inco me | Cash flows from operating |
me | activities | activities | ||||||
Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd. | 0.00 | -4,115,342.31 | -4,115,342.31 | -110,177,413.44 | -880,621.51 | -880,621.51 | -666,756,866.68 | |
Great Wall Estate Co., Inc | 260,141.10 | -505,165.93 | -4,531,644.62 | -495,723.39 | 260,141.10 | -127,844.80 | -127,844.80 | 128,668.43 |
Fresh Peak Investment Ltd | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 3,153.52 | -3,153.52 | 0.00 |
Barenie Co. Ltd. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 238.11 | 238.11 | 0.00 |
Note:
(4) Material restriction on the use of the Group’s assets and the settlement of the Group’s liabilities
(5) Financial support or other support provided to structured entities included in the scope of the
consolidated financial statements
2. Transactions that cause changes in the Group’s interests in subsidiaries that do not result in loss of control
(1) Changes in the Group’s interests in subsidiaries:
(2) Impact from transactions with non-controlling interests and equity attributable to the shareholders ofthe Group:
3. Interests in joint ventures or associates
(1) Material joint ventures or associates
(2) Key financial information of material joint ventures:
(3) Key financial information of material associates:
(4) Summarized financial information of immaterial joint ventures and associates:
Presented in RMB
Ending balance/amount incurred in the reporting period | Opening balance/amount incurred in the reporting period | |
Joint ventures: | ||
The total number of the following |
items based on shareholding ratio | ||
Associates: | ||
Aggregate book value of investments | 272,168.28 | 377,489.65 |
The total number of the following items based on shareholding ratio |
Note:
(5) Material restrictions on transfers of funds from investees to the Group
(6) Excess loss from joint ventures or associates
Presented in RMB
Investee | Accumulated unrecognized loss in prior periods | Unrecognized loss (or share of net profit) for the year | Accumulated unrecognized loss as at 2022.6.30 |
Shenzhen Fresh Peak property consultant Co., Ltd | 2,217,955.89 | 2,217,955.89 |
Note:Shenzhen Fresh Peak property consultant Co., Ltd was established on 15 March 1993 with registeredcapital of 3,000,000 yuan. The group subscribed RMB 600,000 (20% in total capital). As at 30 June 2022, thegroup contributed RMB 600,000 and already confirmed long-term equity invent lose RMB 600,000.
(7) Unrecognized commitments in connection with its investment in joint ventures
(8) Contingent liabilities in connection with its investment in joint ventures or associates
4. Material joint operations
5. Interests and interests in structured entities not included in the scope of consolidated financialstatementsNote to structured entities not included in the scope of consolidated financial statements:
6. Other
X. Risk Management of Financial Instruments
The Group's main financial instruments include the monetary funds, notes receivable, other receivables, Othercurrent assets, accounts receivable, other equity instrument investments, accounts payable, other payables,short-term borrowing, long-term payables. Details of the various financial instruments are disclosed in therelevant notes. The risks associated with these financial instruments and the risk management policies
adopted by the Group to mitigate these risks are described below. The management of the Group managesand monitors these exposures to ensure that these risks are contained within the limits specified.
1. Risk management objectives and policies
The Group's goal in risk management is to strike an appropriate balance between risks and benefits, and striveto reduce the adverse impact of financial risks on the Group's financial performance. Based on this riskmanagement objective, the Group has developed a risk management policy to identify and analyze the risksfaced by the Group, set an appropriate acceptable risk level and design the corresponding internal controlprocedures to monitor the risk level of the Group.The Group regularly reviews these risk management policiesand the relevant internal control systems to adapt to market conditions or changes in the Group's businessactivities. The Group's internal audit department also regularly or randomly checks whether theimplementation of the internal control system complies with the risk management policy.
The main risks arising from the Group's financial instruments are credit risk, liquidity risk, market risk(including exchange rate risk, interest rate risk and commodity price risk).
The Board of Directors is responsible for planning and establishing the Group's risk management structure,formulating the Group's risk management policies and relevant guidelines and overseeing the implementationof risk management measures. The Group has developed risk management policies to identify and analyze therisks faced by the Group. These risk management policies clearly stipulate specific risks, covering market risk,credit risk, liquidity risk management and many other aspects. The Group regularly evaluates changes in themarket environment and the Group's business activities to determine whether to update its risk managementpolicies and systems.
The Group diversifies the risks of financial instruments through appropriate diversification of its portfolio ofinvestments and businesses, and reduces the risk of concentration in a single industry, a specific region or aspecific counterparty through the development of appropriate risk management policies.
(1)Credit Risk
Credit risk refers to the risk of financial loss to the Group resulting from the failure of the counterparty to fulfillits contractual obligations.
The Group manages credit risks according to portfolio classification. Credit risks mainly arise from bankdeposits, notes receivable, accounts receivable, other receivables.
The Group's bank deposits are mainly held in state-owned banks and other large and medium-sized listedbanks (or mainly in financial institutions with good reputations and high credit ratings), and the Group doesnot expect that the bank deposits will pose a significant credit risk.
For notes receivable, accounts receivable, other receivables and long-term receivables, the Group sets policiesto control credit risk exposure. The Group evaluates customers' credit qualifications and sets credit periodsbased on their financial status, credit history and other factors such as current market conditions. The Groupwill regularly monitor the credit records of customers. For customers with poor credit records, the Group will
use written methods to urge payment, shorten the credit period or cancel the credit period to ensure that theoverall credit risk of the Group is within a controllable range.
The debtors of the Group's accounts receivable are customers distributed in different industries andregions.The Group continuously conducts credit assessments on the financial position of accounts receivableand, where appropriate, takes out credit guarantee insurance.
The maximum credit risk exposure of the Group is the carrying amount of each financial asset on the balancesheet. The Group does not provide any other security which may expose the Group to a credit risk.Of the Group's accounts receivable, the accounts receivable of the top five customers account for 44.00% ofthe Group's total accounts receivable (in 2021: 56.87%); Among other receivables of the Group, otherreceivables from the top five companies in arrears amount to 58.94% (in 2021:63.70%) of the total amountof other receivables of the Group.
(2)Liquidity risk
Liquidity risk refers to the risk that the Group will encounter a shortage of funds when fulfilling its obligationsto settle by delivering cash or other financial assets.
In managing liquidity risks, the Group maintains and monitors cash and cash equivalents deemed sufficient bythe management to meet the operational needs of the Group and to reduce the impact of cash flowfluctuations. The Group's management monitors the use of bank borrowings and ensures compliance withborrowing agreements. It also secured a commitment from major financial institutions to provide adequatestandby funds to meet short - and long-term funding needs.
The Group finances its working capital through funds generated from its operations and bank and otherborrowings. As at 30 June 2022, the Group's unutilized bank loan amount is RMB 500 million (31 December2021: RMB 0 million).
At the end of the period, the maturity analysis of the financial assets, financial liabilities and off-balance sheetguarantee items held by the Group according to the undiscounted remaining contract cash flow is as follows(unit: RMB 10,000) :
Item | 2022.6.30 | |||
Within one year | Within one to five years | More than five years | Total | |
Financial liabilities: |
Short-term loans
Short-term loans | 5,683.12 | 5,683.12 | ||
Notes payable | 23,581.87 | 23,581.87 | ||
Accounts payable | 11,630.44 | 11,630.44 |
Interest payables
Interest payables | 1,653.53 | 1,653.53 | ||
Other payables | 54,221.08 | 54,221.08 | ||
Guarantees for client | 36,201.90 | 36,201.90 | ||
Total financial liabilities and contingent liabilities | 132,971.94 | 132,971.94 |
At the beginning of the period, the maturity analysis of the financial assets, financial liabilities and off-balancesheet guarantee items held by the Group according to the undiscounted remaining contract cash flow is asfollows (unit: RMB 10,000) :
Item | 2021.12.31 | |||
Within one year | Within one to five years | More than five years | Total |
Financial liabilities
Financial liabilities | ||||
Short-term loans | 5,044.01 | -- | -- | 5,044.01 |
Notes payable | 24,737.64 | -- | -- | 24,737.64 |
Accounts payable | 14,144.76 | -- | -- | 14,144.76 |
Interest payables | 1,653.53 | -- | -- | 1,653.53 |
Other payables | 56,484.21 | -- | -- | 56,484.21 |
Held-for-sale liabilities | 5,791.56 | 783.69 | -- | 6,575.25 |
Guarantees for client | 39,237.82 | -- | -- | 39,237.82 |
Total financial liabilities and contingent liabilities | 147093.53 | 783.69 | - | 147,877.22 |
The amount of financial liabilities disclosed in the above table is undiscounted contractual cash flows and maybe different from the carrying amount on the balance sheet.
The maximum amount of a guarantee contract that has been signed does not represent the amount to be paid.
(3)Market risks
The market risk of financial instruments refers to the risk that the fair value or future cash flow of financialinstruments will fluctuate due to market price changes, including interest rate risk, exchange rate risk andother price risks.
Interest rate riskInterest rate risk refers to the risk that the fair value of a financial instrument or future cash flow will fluctuatedue to changes in market interest rates. Interest rate risk can arise from recognized interest-bearing financialinstruments and from unrecognized financial instruments (such as certain loan commitments).
The interest rate risk of the Group mainly arises from long-term bank borrowings. Floating interest ratefinancial liabilities expose the Group to cash flow interest rate risk, while fixed interest rate financial liabilitiesexpose the Group to fair value interest rate risk. The Group determines the relative proportion of fixed andfloating rate contracts based on prevailing market conditions and maintains an appropriate mix of fixed andfloating rate instruments through regular review and monitoring.During the reporting period, the Group operates by its own working capital. As at 30 June 2021, the Group hasno financial liabilities with fixed or floating interest rate, such as bank loan. Therefore, the Group believes thatthe interest rate risk is insignificant.Currency risk
The term "exchange rate risk" refers to the risk that the fair value of a financial instrument or future cash flowwill fluctuate due to changes in foreign exchange rates. Exchange rate risk can arise from financial instrumentsdenominated in a foreign currency other than the standard currency.
Exchange rate risk is mainly the Group's financial position and cash flows are affected by foreign exchange ratefluctuations. In addition to the subsidiary established in Hong Kong holding assets in Hong Kong dollar as thesettlement currency, only a small amount of Hong Kong market investment business, the group's foreigncurrency assets and liabilities accounted for the overall assets and liabilities of the proportion is not significant.Therefore, the Group believes that the exchange rate risk is not significant.
2. Capital Management
The objective of the Group's capital management policy is to ensure that the Group can continue as a goingconcern, thereby providing a return to shareholders and benefiting other stakeholders, while maintaining anoptimal capital structure to reduce the cost of capital.
In order to maintain or adjust its capital structure, the Group may adjust its financing method, adjust theamount of dividends paid to shareholders, return capital to shareholders, issue new shares and other equityinstruments or sell assets to reduce its debt.
The Group monitors the capital structure on the basis of the debt-to-asset ratio (i.e., total liabilities divided bytotal assets). As at 30 June 2022, the Group's liability to asset ratio was 24.02% (31 December 2021: 31.62%).XI. Fair Value
1. Items and amounts measured at fair value at the end of reporting period
Presented in RMB
Item | As at 30 June 2022 | |||
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 | -- | -- | -- | -- |
Monetary Fund | 404,148,060.54 | 404,148,060.54 | ||
Investments in other equity instrument | 19,777,460.65 | 19,777,460.65 | ||
Total assets measured at fair value on a recurring basis | 404,148,060.54 | 19,777,460.65 | 423,925,521.19 | |
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 valueUnadjusted quoted prices in active markets that are observable at the measurement date for identical assetsor liabilities.
3. Items measured based on the continuous or uncontinuous 2nd level fair value, valuation technique as
used, nature of important parameters and quantitative information
4. Items measured based on the continuous or uncontinuous 3rd level fair value, valuation technique asused, nature of important parameters and quantitative information
Item | Ending fair value | Valuation techniques | The input value cannot be observed | Range (weighted mean ) |
Equity instrument investment | ||||
Non-listed equity investments | 19,777,460.65 | Net asset method | Net assets in the book Liquidity discount | N/A |
5. Items measured based on the continuous 3rd level fair value, sensitivity analysis on adjusted informationand unobservable parameters between the book value at beginning and end of the period
6. In case items measured based on fair value are converted between different levels incurred in the currentperiod, state the cause of conversion and determine conversion time point
7. Change of valuation technique incurred in the current period and cause of such change
8. the carrying value of other financial assets and financial liabilities which are not measured at fair valuevaries
9. Other
The financial assets and financial liabilities of the Group measured at amortized cost mainly include monetaryfunds, accounts receivable, other receivables, short-term borrowings, accounts payable, other payables, long-term payables, etc.Except for the following financial assets and financial liabilities, the carrying value of other financial assets andfinancial liabilities which are not measured at fair value varies very little from fair value.
XII. Related parties and related party transactions
1. Information about the parent of the Group
Name | Registration | Business nature | Registered | Shareholding | Percentage of |
place | capital | percentage % | voting rights % | ||
Shenzhen Investment Holdings Co., Ltd. | Shenzhen, Guangdong province | Investment, real estate development, guarantee | 2,800,900.00 | 57.19% | 57.19% |
Note:the ultimate controlling party of the Group is State-owned Assets Supervision and ManagementCommission of Shenzhen Municipal People’s Government.
2. Information about the subsidiaries of the Group
For information about the subsidiaries of the Group, refer to Note IX “interests in subsidiaries”.
3. Information about joint ventures and associates of the Group
For information about the joint ventures and associates of the Company, refer to Note IX. 3“Summarizedfinancial information of immaterial joint ventures and associates”
Joint ventures and associates that have related party transactions with the Group during this year or theprevious year are as follows:
Name of joint ventures or associates | Relationship with the Group |
4. Information on other related parties
Name | Related party relationship |
Shenzhen Water Planning & Design Institute Co., Ltd. | Same controlling shareholders |
Shenzhen General Institute of Architectural Design and Research Co., Ltd. | Same controlling shareholders |
Guoren Property and Casualty Insurance Co., Ltd. | Same controlling shareholders |
Shenzhen Property Management Co., Ltd. | Same controlling shareholders |
Shenzhen Dongfang New world store Co., Ltd | Participating stock companies |
Shenxi Limited | Not included in Consolidated Financial Statements’ Subsidiary that had been terminated its licenses by law but not cancellation |
Shenzhen Zhentong New Electromechanical Industry Development Co., Ltd. | Not included in Consolidated Financial Statements’ Subsidiary (Long-term without operation) |
Shenzhen Nanyang Hotel Co., Ltd. | Not included in Consolidated Financial Statements’ Subsidiary that had been terminated its licenses by law but not cancellation |
Shenzhen Real Estate Electromechanical Management Company | Not included in Consolidated Financial Statements’ Subsidiary that had been terminated its licenses by law but not cancellation |
Shenzhen Longgang Henggang Huagang Industrial Co., Ltd. | Not included in Consolidated Financial Statements’ Subsidiary that had been terminated its licenses by law but not cancellation |
Guangzhou Bobi Enterprise Management Consulting Co., Ltd. | Shareholders of Shenzhen Jian ‘an Group Co., Ltd. |
Directors, Supervisors, CFO and Board secretary | Key management personnel |
Note:Since February 11, 2022, the Group will lose control over Shenzhen Property Management Co., Ltd. dueto the disposal of all the equity of the subsidiary. The Group and Shenzhen Property Management Co., Ltd. arestill under the control of the parent company, and will be listed as related parties from February 11, 2022.
5. Transactions with related parties
(1) Purchases/sales
Purchase of goods/receiving of services
Presented in RMB
Related party | Nature of transaction | Year ended 2022.6.30 | Approved transaction limit | Whether it exceeds the transaction limit | Year ended 2021.6.30 |
Shenzhen Water Planning & Design Institute Co., Ltd. | Design of foundation ditch for Shenfang Guangmingli project,etc. | 554,056.60 | No | ||
Shenzhen General Institute of Architectural Design and Research Co., Ltd. | Design of Construction Engineering of Shenfang Guangmingli Project | 763,773.58 | No | ||
Guoren Property and Casualty Insurance Co., Ltd. | Insurance Service | 4,134.00 | No | ||
Shenzhen Property Management Co., Ltd. | Property Service | 100,579.23 | No |
Sales of goods/rendering of services
Presented in RMB
Related party | Nature of transaction | Year ended 2022.6.30 | Year ended 2021.6.30 |
Guoren Property and Casualty Insurance Co., Ltd. | Rental Service | 421,519.98 | |
Shenzhen Property Management Co., Ltd. | Rental Service | 724,518.75 | 42,160.81 |
Shenzhen Ronghua JiDian Co.,Ltd | Rental Service | 42,160.81 |
Note:
(2) Trust/contracting arrangement
Asset management/contracting undertaken by the Group on behalf of related parties
Presented in RMB
Name of related party | Name of trustee/sub-contra ctor | Type of assets entrusted/co | Inception date of trust/contracti | Maturity date of trust/contract | Trust/contracting | Trust/contracting revenue |
ntract ed | ng | ing | revenue | recognized in 2022 |
Asset management / contracting undertaken by related parties on behalf of the Group
Presented in RMB
Name of trustor/main contractor | Name of related party | Type of assets entrusted/contra cted | Inception date of trust/contracting | Maturity date of trust/contracting | Trust/contracting revenue | Trust/contracting revenue recognized in 2022 |
(3) Leases
As the lessor
Presented in RMB
Lessee | Type of assets leased | Lease income recognized in 2022 | Lease income recognized in 2021 |
Shenzhen Property Management Co., Ltd. | Building | 724,518.75 | |
Guoren Property and Casualty Insurance Co., Ltd. | Building | 421,519.98 |
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
As the guarantor
Presented in RMB
Guarantee holder | Amount of | Inception date | Maturity date of | Guarantee expired |
guarantee | of guarantee | guaran tee | (Y/N) |
As the guarantee holder
Presented in RMB
Guarantor | Amount of guarantee | Inception date of guarantee | Maturity date of guaran tee | Guarantee expired (Y/N) |
(5) Funding from related party
Presented in RMB
Related party | Amount of funding | Inception date | Maturity date | Note |
Funds received | ||||
Funds provided |
(6) Transfer of assets and debt restructuring
Presented in RMB
Related party | Nature of transaction | Year ended 2022.6.30 | Year ended 2021.6.30 |
(7) Remuneration of key management personnel
Presented in RMB
Item | Year ended 2022.6.30 | Year ended 2021.6.30 |
Remuneration of key management personnel | 2,902,600.00 | 3,399,100.00 |
(8) Other related party transactions
6. Receivables from and payables to related parties
(1) Receivables from related parties
Presented in RMB
Item | Related party | As at 30 June 2022 | As at 1 January 2022 | ||
Book value | Provision for bad and doubtful debts | Book value | Provision for bad and doubtful debts | ||
Accounts receivable | Shenzhen Fresh Peak property consultant Co., Ltd | 1,118,383.88 | 1,118,383.88 | 1,118,383.88 | 1,118,383.88 |
Other receivables | Guangdong Province Huizhou Luofu | 10,465,168.81 | 10,465,168.81 | 10,465,168.81 | 10,465,168.81 |
Hill Mineral Water Co., Ltd | |||||
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 GreatWall (Vancouver) Co., Ltd | 89,035,748.07 | 89,035,748.07 | 89,035,748.07 | 89,035,748.07 |
Other receivables | Bekaton Property Limited | 12,559,290.58 | 12,559,290.58 | 12,559,290.58 | 12,559,290.58 |
Other receivables | Paklid Limited | 18,689,545.58 | 18,870,785.54 | 18,689,545.58 | 18,870,785.54 |
Other receivables | Shenzhen Shenfang Department Store Co. Ltd | 237,648.82 | 237,648.82 | 237,648.82 | 237,648.82 |
Other receivables | Shenzhen RongHua JiDian Co., Ltd | 475,223.46 | 475,223.46 | 475,223.46 | 475,223.46 |
Other receivables | Xi’an Fresh Peak property management& Trading Co., Ltd | 8,419,205.19 | 8,419,205.19 | 8,419,205.19 | 8,419,205.19 |
Other receivables | Shenxi Limited | 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 |
(2) Payables to related parties
Presented in RMB
Item | Related party | As at 30 Jun 2022 | As at 1 January 2022 |
Interest payables | Shenzhen Investment Shareholding Co. Ltd | 16,535,277.94 | 16,535,277.94 |
Other payables | Shenzhen Dongfang New world store Co., Ltd | 902,974.64 | 902,974.64 |
Other payables | Guangdong Fengkai County Lianfeng Cement Manufacturing Co., Ltd. | 1,867,348.00 | 1,867,348.00 |
Other payables | Shenzhen Real Estate Electromechanical Management Company | 14,981,420.99 | 14,981,420.99 |
Other payables | Shenzhen Zhentong New Electromechanical Industry | 8,827,940.07 | 8,827,940.07 |
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 Bobi Enterprise Management Consulting Co., Ltd. | 193,016,852.52 | 193,016,852.52 |
Other payables | Shenzhen Property Management Co., Ltd. | 20,722,314.85 | 0.00 |
7. Related party commitment
8. Other
XIII. Share-based payment
1. The general situation of share-based payment
□ Applicable √ Not Applicable
2. Share payment settled in equity
□ Applicable √ Not Applicable
3. Cash-settled share payments
□ Applicable √ Not Applicable
4. Modification and termination of share-based payment
5. Other
XIV. Commitments and contingencies
1. Significant commitments
As at 30 June 2022, there exist significant commitments.
Capital commitments entered into but not recognized in the financial statements | 2022.6.30 | 2021.12.31 |
Material sales or purchases contracts | 475,137,087.80 | 475,137,087.80 |
As of June 30, 2022, the Group had no other commitments that should be disclosed.For details of contingent liabilities related to investment of joint ventures or associates, refer to “Note IX.Interest in other entities”.
2. Contingencies
(1) Significant contingencies existing on the balance sheet date
(1)Contingent liabilities arising from pending litigation and arbitration and their financial impact
Plaintiff | Defendant | Case | Court of Appeal | Amount involved | Progress of cases |
Xi’an Fresh Peak Holding limited company | Xi'an Commercial and Trade Commission Xi'an Commerce and Tourism Co., Ltd. | Investment compensation disputes | Shanxi Higher Peopl’s Court | 36.62 million yuan and interest | Pending |
Xi’an Fresh Peak Holding limited company (hereinafter referred to as “Fresh Peak Company”) was Sino-foreignjoint venture set up in Xi’an. Among them, Fresh Peak Enterprise Co., Ltd made 67% of the shares in cash.Xi’an Trade Building, a company directly under the Xi'an Commercial and Trade Commission (hereinafterreferred to as "Xi'an C&T Commission"), invested 16% of the shares in land use rights. Hong Kong DadiwangIndustrial Investment Company holds 17% of the shares. The core business was property development. Andthe project was Xi’an Trade Building. The project was started on 28 November 1995. But the project had beenstopped in 1996 because of the two parties’ differences on the operating policy of the project. In 1997, theXi’an government withdrew the Xi'an Fresh Peak investment project compulsively and assigned the project toXi’an Business Tourism Co., Ltd (hereinafter referred to as “Business Tourism Company”). But two parties hadinsulted a lawsuit on compensation. The ShanXi Province High Peoples Court made a judgement “(2000) SJ-CZNo.25”. The judgement was as follows: 1. Business Tourism Company had to pay for the compensation RMB36,620 thousand to Xi’an Fresh Peak Company after the judgment entering into force. If the BusinessTourism Company failed to pay in time, it had to pay double debt interests to Xi’an Fresh Peak Company. 2.Xi’an Joint Commission on Commerce had jointly and severally obligation of the interests of the compensation.By auctioning assets of Business Tourism Company, the amount of RMB 15,201,000.00 had been called back.The company has obtained new property clues, submitted an application for resumption of execution, thiscase is still pending until 30 June 2022.As at 30 June 2022, the book value of the long-term equity investment of Xi’an Fresh Peak Company is RMB32,840,729.61. The book balance of assets was RMB 8,419,205.19. Both have been taken full provision forimpairment loss.
(2)Contingent liabilities arising from guarantee provided to other entities and related financial effects.As at 30 June 2022, the Group provides commercial housing purchaser with guarantees at 36,201.90 ((RMB inten thousand) for the following loans:
Item | Duration | Amount (In ten thousand) | Note |
Shengfang CuiLin Building | Until the Premises Permit mortgage registration is finished and in bank custody | 2,697.86 |
ChuanQi DongHu
ChuanQi DongHu | Until the Premises Permit mortgage registration is finished and in bank | 2,228.92 |
Building (Former DongHuDiJing Building) | custody | ||
TianYue Bay | Until the Premises Permit mortgage registration is finished and in bank custody | 30,898.12 |
Lin Xin Building
Lin Xin Building | Until the Premises Permit mortgage registration is finished and in bank custody | 377.00 | |
Total | 36,201.90 |
(3)Other contingencies(Not including contingent liabilities that are highly unlikely to result in an outflowof economic benefits from the business)
For details of contingent liabilities related to investment of joint ventures or associates, refer to Note IX.3.
As at 30 June 2022, there is no other contingency to be disclosed.
(2) It is necessary to explain if the group has no contingencies to be disclosed.There is no material contingencies to be disclosed.
3. Other
XV. Post balance sheet date events
1. Material post balance sheet date events
2. Profit appropriations after the balance sheet date
3. Sale returns
4. Other events after the balance sheet date
XVI. Other significant items
1. Corrections of errors in prior periods
(1) Retrospective method
Presented in RMB
Details of corrections of errors | Adjustment procedure | Financial item affected in the comparable period | Cumulative amoun |
(2) Prospective mothod
Presented in RMB
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
6. Segment reporting
(1) The basis for determining the reporting segments and accounting policy
(2) Financial information of the reporting segments
(3) In case there is no reporting segment or the total assets and liabilities of the reporting segmentscannot be disclosed, explain the reason
(4) Other note
7. Other significant transactions and matters that may affect investors' decision making
8. Other
XVII. Notes for main items in the parent company's financial statements
1. Accounts Receivable
(1) Accounts receivables disclosed by categories
Presented in RMB
Item | As at 30 June 2022 | As at 1 January 2022 | ||||
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 | 9,649,415.20 | 97.51% | 9,649,415.20 | 100.00% | 0.00 | 9,649,415.20 | 49.22% | 9,649,415.20 | 100.00% | 0.00 |
Including: | ||||||||||
Bad debt provisions made on a combination basis | 246,255.24 | 2.49% | 168,065.71 | 68.25% | 78,189.53 | 9,954,456.83 | 50.78% | 246,170.90 | 2.47% | 9,708,285.93 |
Including: | ||||||||||
Accounts receivable from related parties in consolidated scope | 55,957.34 | 0.57% | 55,957.34 | 5,031,038.74 | 25.67% | 5,031,038.74 | ||||
Accounts receivable from other customers | 190,297.90 | 1.92% | 168,065.71 | 88.32% | 22,232.19 | 4,923,418.09 | 25.11% | 246,170.90 | 5.00% | 4,677,247.19 |
Total | 9,895,670.44 | 100.00% | 9,817,480.91 | 99.21% | 78,189.53 | 19,603,872.03 | 100.00% | 9,895,586.10 | 50.48% | 9,708,285.93 |
Bad debt provisions made on an individual basis:
Presented in RMB
Item | As at 30 June 2022 | |||
Book balance | Bad debt provision | Percentage of provision | Reason for accrual | |
long-term accounts receivable from property sales | 9,649,415.20 | 9,649,415.20 | 100.00% | Expected to be uncollectable |
Total | 9,649,415.20 | 9,649,415.20 |
Bad debt provisions made on a combination basis: related parties in consolidation scope:
Presented in RMB
Item | As at 30 June 2022 |
Book balance | Bad debt provision | Percentage of provision | |
Within 1 year | 55,957.34 | ||
Total | 55,957.34 |
Note to the basis for determining the combination:
Bad debt provisions made on a combination basis: receivables from other customers:
Presented in RMB
Item | As at 30 June 2022 | ||
Book balance | Bad debt provision | Percentage of provision | |
Within 1 year | 190,297.90 | 168,065.71 | 88.32% |
Total | 190,297.90 | 168,065.71 |
Note to the basis for determining the combination:
Please refer to the way of disclosing other receivables’ bad debt provision to disclose relevant information, ifthe group choose to use general model of expected credit losses to accrue bad debts of accounts receivable.
□ Applicable √ Not Applicable
Disclosed by aging
Presented in RMB
Aging | As at 30 June 2022 |
Within 1 year (with 1 year inclusive) | 246,255.24 |
Above 3 year | 9,649,415.20 |
Above 5 year | 9,649,415.20 |
Total | 9,895,670.44 |
(2) Additions, recoveries or reversals of provision for the current period
Provision for the current period:
Presented in RMB
Types | As at 1 January 2022 | Amount changes in current period | As at 30 June 2022 | |||
Provision | Recoveries or reversals | Written-off | Others | |||
Bad debt provision | 9,895,586.10 | 78,105.19 | 9,817,480.91 | |||
Total | 9,895,586.10 | 78,105.19 | 9,817,480.91 |
Including: significant recoveries or reversals of bad debt provisions in the current period are as follows:
Presented in RMB
Name of the entity | Recoveries or reversals amount | Recovery manner |
(3) Actual write-off of accounts receivable in the current
Presented in RMB
Item | Written-off amount |
Including the significant write-offs of accounts receivable are as follows:
Presented in RMB
Name of the entity | Nature of accounts receivable | Written-off amount | Reason written-off | Approval procedures performed | Accounts receivable arising from related party transactions(Y/N) |
(4) The top five units with the ending balance of accounts receivable collected by the debtor
Presented in RMB
Name of the entity | Accounts receivable The ending balance | % of the total closing balance of accounts receivable | Bad debt provision The ending balance |
Daxing Auto Parts Co., Ltd. | 1,890,563.21 | 19.10% | 1,890,563.21 |
Weidong Wang | 1,200,000.00 | 12.13% | 1,200,000.00 |
Guangyao Cai | 876,864.11 | 8.86% | 876,864.11 |
Peitong Huang | 617,559.26 | 6.24% | 617,559.26 |
Zhiying Zhang | 593,244.00 | 5.99% | 593,244.00 |
Total | 5,178,230.58 | 52.32% |
(5) Accounts receivable terminated due to the transfer of financial assets
(6) Transfer of accounts receivable and continue to involve the amount of assets and liabilities formed
2. Other receivables
Presented in RMB
Item | As at 30 June 2022 | As at 1 January 2022 |
Other receivables | 1,606,595,768.89 | 1,587,300,891.76 |
Total | 1,606,595,768.89 | 1,587,300,891.76 |
(1) Interest receivable
1) Classification of interest receivable
Presented in RMB
Item | As at 30 June 2022 | As at 1 January 2022 |
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 |
3) Bad Debt Provisions
□ Applicable √ Not Applicable
(2) Dividends receivable
1) Dividends receivable classification
Presented in RMB
Items (or invested units) | As at 30 June 2022 | As at 1 January 2022 |
2) Significant dividends receivable overdue more than one year are as follows:
Presented in RMB
Items (or invested units) | As at 30 June 2022 | Aging | Reasons for not recovered | Whether impairment occurs and the basis for judgment |
3) Bad Debt Provisions
□ Applicable √ Not Applicable
Other note:
(3) Other receivables
1) Other receivables disclosure by nature
Presented in RMB
Item | Book balance as at 30 June 2022 | Book balance as at 1 January 2022 |
Other receivables from the collecting and paying on behalf | 201,363.15 | 203,659.15 |
Other receivables from other customers | 35,426,046.31 | 4,801,159.55 |
Other receivables from related parties | 137,211,313.52 | 137,211,313.52 |
Other receivables in consolidated scope | 2,230,859,423.27 | 2,237,602,605.41 |
Total | 2,403,698,146.25 | 2,379,818,737.63 |
2) Bad Debt Provision
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 as at 1 January 2022 | 39,189.17 | 651,249,966.99 | 141,228,689.71 | 792,517,845.87 |
Balance as at 1 January 2022 in current period | ||||
Other movements | 4,584,531.49 | |||
Balance as at 30 June 2022 | 39,189.17 | 655,834,498.48 | 141,228,689.71 | 797,102,377.36 |
Changes in the book balance with significant changes in the loss provision for the current period:
Applicable √ Not ApplicableOther movements in the loss provision were due to the exchange differences of foreign currency accountsreceivable of overseas subsidiaries.Disclosure by aging
Presented in RMB
Aging | As at 30 June 2022 |
Within 1 year (include 1 year) | 275,846,265.28 |
1 to 2 years | 554,599,664.52 |
2 to 3 years | 78,698,092.26 |
Over 3 years | 1,494,554,124.19 |
3 to 4 years | 980,894,958.51 |
Over 5 years | 513,659,165.68 |
Total | 2,403,698,146.25 |
3) Additions, recoveries or reversals of provision for the current periodProvision for bad debts in the current period:
Presented in RMB
Types | As at 1 January 2022 | Amount changes in current period | As at 30 June 2022 | |||
Additions | Recoveries or reversals | Written-off | Others | |||
Other receivables bad debt provision | 792,517,845.87 | 4,584,531.49 | 797,102,377.36 | |||
Total | 792,517,845.87 | 4,584,531.49 | 797,102,377.36 |
Including significant recoveries or reversals of bad debt provisions in the current period are as follows:
Presented in RMB
Name of the entity | Amount of recoveries or reversals | Recovery manner |
4) Other receivables actually written off in the current period
Presented in RMB
Item | Amount of written-off |
Including significant accounts receivable writen-off situation is as follows:
Presented in RMB
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 |
5) 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 |
Shantou Huafeng Estate Development Co., Ltd | Receivable from Subsidiary | 766,160,642.87 | Within 1 year. 1-3 years.. over3 years | 31.87% | |
Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd. | Receivable from Subsidiary | 681,097,870.89 | Within 1 year. 1-2years | 28.34% | |
Fresh Peak Enterprise Co., Ltd | Receivable from Subsidiary | 518,037,906.74 | Within 1 year. over five years | 21.55% | 508,377,320.74 |
American Great Wall Co., Ltd | Receivable from Subsidiary | 99,086,947.95 | over five years | 4.12% | 99,086,947.95 |
Fresh Peak Zhiye Co., Ltd. | Receivable from Subsidiary | 88,700,902.73 | over five years | 3.69% | 88,700,902.73 |
Total | 2,153,084,271.18 | 89.57% | 696,165,171.42 |
6) Government subsidies receivable
Presented in RMB
Name of the organization | Name of government subsidy item | The ending balance | Aging | Estimated time, amount and basis of collection |
7) Other receivables terminated due to the transfer of financial assets8) Amount of assets and liabilities formed by transferring other receivables and continuing to involve them
3. Long-term equity investments
Presented in RMB
Item | As at 30 June 2022 | As at 1 January 2022 | ||||
Book balance | Impairment reserve | Book value | Book balance | Impairment reserve | Book value | |
Investment in subsidiaries | 1,735,224,157.90 | 152,839,271.15 | 1,582,384,886.75 | 1,735,224,157.90 | 152,839,271.15 | 1,582,384,886.75 |
Investment in associates and joint ventures | 12,250,013.86 | 11,977,845.58 | 272,168.28 | 12,250,013.86 | 11,977,845.58 | 272,168.28 |
Total | 1,747,474,171.76 | 164,817,116.73 | 1,582,657,055.03 | 1,747,474,171.76 | 164,817,116.73 | 1,582,657,055.03 |
(1) Investment in subsidiaries
Presented in RMB
Name of investee | As at 1 January 2022 (book value) | Increase/ Decrease (+ / -) in current period | As at 30 June 2022 (book value) | provision for impairment as at 30 June 2022 | |||
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 Special Economic Zone Real | 19,000,000.00 |
Estate (Group) Guangzhou Property and Estate Co., Ltd. | |||||||
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 | |||||
Shenzhen Huazhan Construction Supervision Co., Ltd. | 6,000,000.00 | 6,000,000.00 | |||||
Kai Luk Company Limited | 212,280.00 | 212,280.00 | |||||
Beijing Shenfang Property Management Co., Ltd. | 500,000.00 | ||||||
Shenzhen Lain Hua Industry and Trading Co., Ltd. | 13,458,217.05 | 13,458,217.05 | |||||
Shenzhen City SPG Long Gang Development Ltd. | 30,850,000.00 | 30,850,000.00 | |||||
Beijing Fresh Peak Property Development Management Limited Company | 64,183,888.90 | ||||||
Shantou City Huafeng Real Estate Devepment | 16,467,021.02 | 16,467,021.02 |
Co., Ltd | |||||||
Paklid Limited | 201,100.00 | ||||||
Bekaton Property Limited | 906,630.00 | ||||||
Shenzhen Shenfang Department Store Co. Ltd. | 9,500,000.00 | ||||||
Shantou Fresh Peak Building | 58,547,652.25 | ||||||
Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd. | 450,000,000.00 | 450,000,000.00 | |||||
Shenzhen Shenfang Chuanqi Real Estate Development Co., Ltd. | 995,000,000.00 | 995,000,000.00 | |||||
Total | 1,582,384,886.75 | 1,582,384,886.75 | 152,839,271.15 |
(2) Investment in associates and joint ventures
Presented in RMB
Investees | Opening balance (book value) | Increase/ Decrease (+ / -) in the Jan to Jun 2022 | Ending balance (book value) | Ending balance of the provisio n 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 impirment | Others | |||||
I. Joint Venture | ||||||||||||
Fengkai Xinghua Hotel | 0.00 | 0.00 | 9,455,465.38 | |||||||||
Subtotal | 0.00 | 0.00 | 9,455,465.38 |
II. Associates | |||||||||||
Shenzhe n Ronghua Jidian Co., Ltd | 272,168.28 | 272,168.28 | 1,076,954.64 | ||||||||
Shenzhe n Runhua Automobile Trading Co., Ltd | 0.00 | 0.00 | 1,445,425.56 | ||||||||
Subtotal | 272,168.28 | 272,168.28 | 2,522,380.20 | ||||||||
Total | 272,168.28 | 272,168.28 | 11,977,845.58 |
(3) Other note
4. Operation Income and Costs
Presented in RMB
Items | Jan to Jun 2022 | Jan to Jun 2021 | ||
Income | Costs | Income | Costs | |
Principal business | 160,962,949.24 | 48,054,643.10 | 455,734,779.10 | 115,125,525.93 |
Other businesses | 6,035.31 | 6,035.31 | ||
Total | 160,968,984.55 | 48,054,643.10 | 455,740,814.41 | 115,125,525.93 |
Revenue related information:
Information related to performance obligations:
There are four criteria need to be satisfied when the group recognizing the revenue from property sales:
(1) the sale contract has been signed and filed with the land department; (2) the property development iscompleted and pass the acceptance; (3) For Lump-sum payment, revenue is recognized by the group whenthe consideration is fully received. For instalment payment, revenue is recognized when the first installmenthas been received and the bank mortgage approval procedures have been completed. (4) completed theprocedures for entering the partnership in accordance with the requirements stipulated in sale contract.Information related to the transaction price allocated to the remaining performance obligations:
At the end of the reporting period, the amount of revenue corresponding to the performance obligationsthat have been signed but not yet performed or not yet completed is RMB 149,766,505.08 yuan, Amongthem, RMB35,427,921.08 yuan is expected to be recognized as revenue in 2022, RMB 56,509,104.00 is
expected to be recognized as revenue in the year 2023, and RMB 56,509,104.00 yuan is expected to berecognized as revenue in the year 2024.
5. Investment income
Presented in RMB
Item | Jan to Jun 2022 | Jan to Jun 2021 |
Investment income from disposal of long-term equity investment | 174,021,073.48 | |
Investment income from disposal of financial assets held for trading | 159,619.01 | |
Dividend income from other equity instrument investments during the holding period | 813,960.00 | |
Total | 174,994,652.49 |
6. Other
XVIII. Supplementary Information
1. Statement of non-recurring gains and losses for the current period
√ Applicable □ Not Applicable
Presented in RMB
Item | Amount | Note |
Gains and losses on disposal of non-current assets | 163,352,077.77 | Investment income in disposal of subsidiary equity |
Government subsidies in the current profit and loss(except the part that are closely related to the company's normal business operations, comply with national policies and regulations, and will continuously enjoyed with a fixed or quantitative manner according to certain standards) | 400,232.43 | Government grants received |
Debt Restructuring Gains and Losses | 2,489,520.46 | Debt Restructuring Proceeds |
Except for the effective hedging business related to the normal operation of the company, gains and losses from changes in fair value arising from the holding of tradable financial assets and tradable financial liabilities, and the investment income from the disposal of financial assets held for trading. financial liabilities held for trading or available-for-sale | 5,123,349.63 | Changes in fair value and investment income arising from investment in monetary funds |
financial assets. | ||
Non-operating income/(expenses) except the above | 506,908.18 | |
Less: Amount affected by the income tax | 42,968,022.12 | |
Amount affected by minority interests | 914,898.77 | |
Total | 127,989,167.58 | -- |
Details of other profit and loss items that meet the definition of non recurring gain and loss:
□Applicable √ Not Applicable
Details of the company does not have other profit and loss items that meet the definition of non recurringprofit and loss.
Description 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 √ Not Applicable
2. Return on equity and earnings per share
Profit in reporting period | Basic earnings per share | Basic earnings per share | |
Basic earnings per share | Diluted earnings per share | ||
Net income attributable to the common shareholders of the Group | 3.62% | 0.1435 | 0.1435 |
Net profit attributable to common shareholders of a company after deducting non-recurring gains and losses | 0.43% | 0.0169 | 0.0169 |
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 √ Not Applicable
Presented in RMB
Net profit | Net assets | |||
Current amount | Amount of previous period | Ending balance | Opening balance | |
According to the accounting standards for | 145,128,330.14 | 132,447,122.14 | 3,996,719,159.82 | 3,938,260,291.97 |
Chinese enterprises | ||||
Items and Amount Adjusted according to International Accounting Standards: | ||||
According to the international accounting standards | 145,128,330.14 | 145,128,330.14 | 4,085,745,239.82 | 3,938,260,291.97 |
(2) The difference between net profit and net asset in the financial report disclosed in accordance withInternational accounting standards for overseas enterprises and Chinese accounting standards forenterprises
□ Applicable √ Not Applicable
(3) Note to the discrepancy in accounting data under the accounting standards outside Mainland China.In case the discrepancy in data which have been audited by an overseas auditing agent has been adjusted,please specify the name of the overseas auditing agent.
4. Other