SHENZHEN PROPERTIES & RESOURCES DEVELOPMENT (GROUP) LTD.
SEMIANNUAL FINANCIAL REPORT 2023
August 2023
Financial StatementsI. Auditor’s ReportAre these interim financial statements audited by an independent auditor?
□ Yes ? No
These interim financial statements have not been audited by an independent auditor.II Financial StatementsCurrency unit for the financial statements and the notes thereto: RMB
1. Consolidated Balance Sheet
Prepared by Shenzhen Properties & Resources Development (Group) Ltd.
30 June 2023
Unit: RMB
| Item | 30 June 2023 | 1 January 2023 |
| Current assets: | ||
| Monetary assets | 1,392,204,627.76 | 1,517,528,893.83 |
| Settlement reserve | ||
| Interbank loans granted | ||
| Held-for-trading financial assets | ||
| Derivative financial assets | ||
| Notes receivable | 0.00 | 0.00 |
| Accounts receivable | 416,925,839.15 | 419,933,915.30 |
| Accounts receivable financing | ||
| Prepayments | 10,207,824.31 | 100,341,806.56 |
| Premiums receivable | ||
| Reinsurance receivables | ||
| Receivable reinsurance contract reserve | ||
| Other receivables | 624,876,343.49 | 639,903,523.33 |
| Including: Interest receivable | 0.00 | 0.00 |
| Dividends receivable | 0.00 | 0.00 |
| Financial assets purchased under resale agreements | ||
| Inventories | 10,848,296,900.64 | 10,975,334,223.37 |
| Contract assets | 110,384,064.37 | 1,094,632.90 |
| Assets held for sale | ||
| Current portion of non-current assets | ||
| Other current assets | 70,987,410.26 | 65,655,266.27 |
| Total current assets | 13,473,883,009.98 | 13,719,792,261.56 |
| Non-current assets: | ||
| Loans and advances to customers | ||
| Investments in debt obligations | ||
| Investments in other debt obligations | ||
| Long-term receivables | 21,920,095.92 | 22,651,454.07 |
| Long-term equity investments | 81,575,705.63 | 79,781,437.31 |
| Investments in other equity instruments | 635,355.65 | 887,838.64 |
| Other non-current financial assets |
| Investment property | 405,664,937.06 | 405,762,739.18 |
| Fixed assets | 72,977,952.16 | 82,745,172.12 |
| Construction in progress | ||
| Productive living assets | ||
| Oil and gas assets | ||
| Right-of-use assets | 55,776,458.18 | 70,168,415.65 |
| Intangible assets | 946,082.32 | 1,269,382.91 |
| Development costs | ||
| Goodwill | 9,446,847.38 | 9,446,847.38 |
| Long-term prepaid expense | 19,591,506.08 | 21,980,602.46 |
| Deferred income tax assets | 1,353,192,386.31 | 1,383,050,586.04 |
| Other non-current assets | 3,926,873.08 | 2,750,873.08 |
| Total non-current assets | 2,025,654,199.77 | 2,080,495,348.84 |
| Total assets | 15,499,537,209.75 | 15,800,287,610.40 |
| Current liabilities: | ||
| Short-term borrowings | ||
| Borrowings from the central bank | ||
| Interbank loans obtained | ||
| Held-for-trading financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | ||
| Accounts payable | 497,515,760.20 | 608,283,388.52 |
| Advances from customers | 1,209,185.48 | 2,260,847.31 |
| Contract liabilities | 119,759,723.57 | 920,828,040.81 |
| Financial assets sold under repurchase agreements | ||
| Customer deposits and interbank deposits | ||
| Payables for acting trading of securities | ||
| Payables for underwriting of securities | ||
| Employee benefits payable | 193,072,434.89 | 239,126,392.02 |
| Taxes payable | 3,925,399,672.99 | 3,917,278,346.81 |
| Other payables | 1,704,126,936.52 | 1,515,085,832.45 |
| Including: Interest payable | 0.00 | 0.00 |
| Dividends payable | 227,351,128.25 | 12,202,676.04 |
| Handling charges and commissions payable | ||
| Reinsurance payables | ||
| Liabilities directly associated with assets held for sale | ||
| Current portion of non-current liabilities | 222,669,043.37 | 218,858,766.82 |
| Other current liabilities | 3,392,989.52 | 83,991,786.83 |
| Total current liabilities | 6,667,145,746.54 | 7,505,713,401.57 |
| Non-current liabilities: | ||
| Insurance contract reserve | ||
| Long-term borrowings | 4,172,450,268.17 | 3,618,782,344.00 |
| Bonds payable | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities | 62,925,499.87 | 77,963,283.55 |
| Long-term payables | 0.00 | 0.00 |
| Long-term employee benefits payable | 0.00 | 0.00 |
| Provisions | 766,612.52 | 766,612.52 |
| Deferred income | 0.00 | 0.00 |
| Deferred income tax liabilities | 174,168.87 | 241,978.54 |
| Other non-current liabilities | 128,251,841.93 | 128,008,919.79 |
| Total non-current liabilities | 4,364,568,391.36 | 3,825,763,138.40 |
| Total liabilities | 11,031,714,137.90 | 11,331,476,539.97 |
| Owners’ equity: | ||
| Share capital | 595,979,092.00 | 595,979,092.00 |
| Other equity instruments | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Capital reserves | 80,488,045.38 | 80,488,045.38 |
| Less: Treasury stock | 0.00 | 0.00 |
| Other comprehensive income | -2,450,357.68 | -3,854,377.95 |
| Specific reserve | ||
| Surplus reserves | 48,886,605.81 | 48,886,605.81 |
| General reserve | ||
| Retained earnings | 3,695,166,352.46 | 3,691,056,182.73 |
| Total equity attributable to owners of the Company as the parent | 4,418,069,737.97 | 4,412,555,547.97 |
| Non-controlling interests | 49,753,333.88 | 56,255,522.46 |
| Total owners’ equity | 4,467,823,071.85 | 4,468,811,070.43 |
| Total liabilities and owners’ equity | 15,499,537,209.75 | 15,800,287,610.40 |
Legal representative: Liu Shengxiang Head of financial affairs: Cai LiliHead of the financial department: Liu Qiang
2. Balance Sheet of the Company as the Parent
Unit: RMB
| Item | 30 June 2023 | 1 January 2023 |
| Current assets: | ||
| Monetary assets | 732,674,528.27 | 532,263,736.63 |
| Held-for-trading financial assets | ||
| Derivative financial assets | ||
| Notes receivable | ||
| Accounts receivable | 2,719,055.69 | 5,137,042.71 |
| Accounts receivable financing | ||
| Prepayments | ||
| Other receivables | 4,596,372,355.43 | 5,162,396,869.45 |
| Including: Interest receivable | ||
| Dividends receivable | 151,433,108.41 | 151,433,108.41 |
| Inventories | 93,126,982.22 | 793,075,051.53 |
| Contract assets | 109,392,112.37 | |
| Assets held for sale | ||
| Current portion of non-current assets | ||
| Other current assets | 1,025,446.90 | 18,130,015.97 |
| Total current assets | 5,535,310,480.88 | 6,511,002,716.29 |
| Non-current assets: | ||
| Investments in debt obligations | ||
| Investments in other debt obligations | ||
| Long-term receivables | ||
| Long-term equity investments | 1,449,541,586.02 | 1,447,747,317.70 |
| Investments in other equity instruments | 865,855.65 | 1,118,338.64 |
| Other non-current financial assets | ||
| Investment property | 264,768,426.75 | 260,599,477.89 |
| Fixed assets | 26,787,980.94 | 31,577,309.67 |
| Construction in progress |
| Productive living assets | ||
| Oil and gas assets | ||
| Right-of-use assets | 3,413,718.30 | 3,238,351.85 |
| Intangible assets | ||
| Development costs | ||
| Goodwill | ||
| Long-term prepaid expense | 580,220.67 | 860,115.06 |
| Deferred income tax assets | 90,295,008.03 | 152,942,094.59 |
| Other non-current assets | 2,511,552,650.86 | 2,362,376,650.86 |
| Total non-current assets | 4,347,805,447.22 | 4,260,459,656.26 |
| Total assets | 9,883,115,928.10 | 10,771,462,372.55 |
| Current liabilities: | ||
| Short-term borrowings | ||
| Held-for-trading financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | ||
| Accounts payable | 54,032,590.97 | 41,228,778.20 |
| Advances from customers | 0.00 | 952,186.65 |
| Contract liabilities | 0.00 | 840,878,470.63 |
| Employee benefits payable | 50,427,323.40 | 56,425,731.67 |
| Taxes payable | 4,149,081.01 | 1,783,757.84 |
| Other payables | 7,341,237,233.98 | 7,258,663,180.38 |
| Including: Interest payable | ||
| Dividends payable | 215,178,094.61 | 29,642.40 |
| Liabilities directly associated with assets held for sale | ||
| Current portion of non-current liabilities | 190,309,485.27 | 190,431,469.82 |
| Other current liabilities | 0.00 | 75,679,062.35 |
| Total current liabilities | 7,640,155,714.63 | 8,466,042,637.54 |
| Non-current liabilities: | ||
| Long-term borrowings | 431,200,000.00 | 462,000,000.00 |
| Bonds payable | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities | 2,481,170.16 | 1,947,178.87 |
| Long-term payables | ||
| Long-term employee benefits payable | ||
| Provisions | ||
| Deferred income | ||
| Deferred income tax liabilities | ||
| Other non-current liabilities | 40,000,000.00 | 40,000,000.00 |
| Total non-current liabilities | 473,681,170.16 | 503,947,178.87 |
| Total liabilities | 8,113,836,884.79 | 8,969,989,816.41 |
| Owners’ equity: | ||
| Share capital | 595,979,092.00 | 595,979,092.00 |
| Other equity instruments | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Capital reserves | 53,876,380.11 | 53,876,380.11 |
| Less: Treasury stock | ||
| Other comprehensive income | -3,018,820.21 | -2,742,841.65 |
| Specific reserve | ||
| Surplus reserves | 48,886,605.81 | 48,886,605.81 |
| Retained earnings | 1,073,555,785.60 | 1,105,473,319.87 |
| Total owners’ equity | 1,769,279,043.31 | 1,801,472,556.14 |
| Total liabilities and owners’ equity | 9,883,115,928.10 | 10,771,462,372.55 |
3. Consolidated Income Statement
Unit: RMB
| Item | H1 2023 | H1 2022 |
| 1. Revenue | 1,905,464,632.85 | 1,988,299,840.24 |
| Including: Operating revenue | 1,905,464,632.85 | 1,988,299,840.24 |
| Interest income | ||
| Insurance premium income | ||
| Handling charge and commission income | ||
| 2. Costs and expenses | 1,605,529,607.89 | 1,648,725,222.85 |
| Including: Cost of sales | 1,372,159,884.25 | 1,068,652,583.32 |
| Interest expense | ||
| Handling charge and commission expense | ||
| Surrenders | ||
| Net insurance claims paid | ||
| Net amount provided as insurance contract reserve | ||
| Expenditure on policy dividends | ||
| Reinsurance premium expense | ||
| Taxes and surcharges | 45,190,786.03 | 394,230,719.81 |
| Selling expense | 13,087,297.05 | 11,358,858.51 |
| Administrative expense | 149,188,184.18 | 143,701,058.05 |
| R&D expense | 1,711,051.44 | 2,689,725.40 |
| Finance costs | 24,192,404.94 | 28,092,277.76 |
| Including: Interest expense | 31,827,441.32 | 36,281,087.17 |
| Interest income | 7,930,755.87 | 9,179,453.97 |
| Add: Other income | 5,670,088.91 | 6,806,445.99 |
| Return on investment (“-” for loss) | 1,857,388.32 | 946,914.05 |
| Including: Share of profit or loss of joint ventures and associates | 1,857,388.32 | 859,534.38 |
| Income from the derecognition of financial assets at amortized cost (“-” for loss) | ||
| Exchange gain (“-” for loss) | ||
| Net gain on exposure hedges (“-” for loss) | ||
| Gain on changes in fair value (“-” for loss) | ||
| Credit impairment loss (“-” for loss) | -13,610,779.58 | -14,462,076.54 |
| Asset impairment loss (“-” for loss) | 2,045.93 | 3,302.47 |
| Asset disposal income (“-” for loss) | 174,379.69 | -41,452.49 |
| 3. Operating profit (“-” for loss) | 294,028,148.23 | 332,827,750.87 |
| Add: Non-operating income | -204,898.03 | 2,546,068.46 |
| Less: Non-operating expense | 357,718.39 | 1,417,586.84 |
| 4. Profit before tax (“-” for loss) | 293,465,531.81 | 333,956,232.49 |
| Less: Income tax expense | 78,819,275.76 | 92,655,204.26 |
| 5. Net profit (“-” for net loss) | 214,646,256.05 | 241,301,028.23 |
| 5.1 By operating continuity | ||
| 5.1.1 Net profit from continuing operations (“-” for net loss) | 214,584,900.22 | 241,301,028.23 |
| 5.1.2 Net profit from discontinued operations (“-” for net loss) | 61,355.83 | 0.00 |
| 5.2 By ownership | ||
| 5.2.1 Net profit attributable to shareholders of the Company as the parent (“-” for net loss) | 220,903,444.63 | 250,802,157.71 |
| 5.2.2 Net profit attributable to non-controlling interests (“-” for net loss) | -6,257,188.58 | -9,501,129.48 |
| 6. Other comprehensive income, net of tax | 1,404,020.27 | 2,063,279.42 |
| Attributable to owners of the Company as the parent | 1,404,020.27 | 2,063,279.42 |
| 6.1 Items that will not be reclassified to profit or loss | -275,978.56 | -118,365.58 |
| 6.1.1 Changes caused by remeasurements on defined benefit schemes | 0.00 | 0.00 |
| 6.1.2 Other comprehensive income that will not be reclassified to profit or loss under the equity method | 0.00 | 0.00 |
| 6.1.3 Changes in the fair value of investments in other equity instruments | -275,978.56 | -118,365.58 |
| 6.1.4 Changes in the fair value arising from changes in own credit risk | 0.00 | 0.00 |
| 6.1.5 Other | 0.00 | 0.00 |
| 6.2 Items that will be reclassified to profit or loss | 1,679,998.83 | 2,181,645.00 |
| 6.2.1 Other comprehensive income that will be reclassified to profit or loss under the equity method | ||
| 6.2.2 Changes in the fair value of investments in other debt obligations | ||
| 6.2.3 Other comprehensive income arising from the reclassification of financial assets | ||
| 6.2.4 Credit impairment allowance for investments in other debt obligations | ||
| 6.2.5 Reserve for cash flow hedges | ||
| 6.2.6 Differences arising from the translation of foreign currency-denominated financial statements | 1,679,998.83 | 2,181,645.00 |
| 6.2.7 Other | ||
| Attributable to non-controlling interests | 0.00 | 0.00 |
| 7. Total comprehensive income | 216,050,276.32 | 243,364,307.65 |
| Attributable to owners of the Company as the parent | 222,307,464.90 | 252,865,437.13 |
| Attributable to non-controlling interests | -6,257,188.58 | -9,501,129.48 |
| 8. Earnings per share | ||
| 8.1 Basic earnings per share | 0.3707 | 0.4208 |
| 8.2 Diluted earnings per share | 0.3707 | 0.4208 |
Where business combinations under common control occurred in the Current Period, the net profit achieved by the acquireesbefore the combinations was RMB0, with the amount for the same period of last year being RMB0.Legal representative: Liu Shengxiang Head of financial affairs: Cai LiliHead of the financial department: Liu Qiang.
4. Income Statement of the Company as the Parent
Unit: RMB
| Item | H1 2023 | H1 2022 |
| 1. Operating revenue | 1,003,621,923.84 | 31,589,670.59 |
| Less: Cost of sales | 698,031,149.77 | 17,210,314.74 |
| Taxes and surcharges | 8,373,564.71 | 3,188,103.66 |
| Selling expense | 406,096.84 | 189,424.71 |
| Administrative expense | 47,358,840.75 | 45,512,068.89 |
| R&D expense | 0.00 | 0.00 |
| Finance costs | 6,675,706.20 | 4,842,416.19 |
| Including: Interest expense | 13,125,188.51 | 13,164,271.45 |
| Interest income | 3,531,500.73 | 5,221,428.26 |
| Add: Other income | 252,975.99 | 182,349.33 |
| Return on investment (“-” for loss) | 1,857,388.32 | 77,583,669.56 |
| Including: Share of profit or loss of joint ventures and associates | 1,857,388.32 | 859,534.38 |
| Income from the derecognition of financial assets at amortized cost (“-” for loss) | ||
| Net gain on exposure hedges (“-” for loss) | ||
| Gain on changes in fair value (“-” for loss) | ||
| Credit impairment loss (“-” for loss) | 482,276.30 | 47,995.81 |
| Asset impairment loss (“-” for loss) | ||
| Asset disposal income (“-” for loss) | 111,000.73 | 0.00 |
| 2. Operating profit (“-” for loss) | 245,480,206.91 | 38,461,357.10 |
| Add: Non-operating income | 413,371.19 | 0.00 |
| Less: Non-operating expense | 15,573.60 | 23,576.47 |
| 3. Profit before tax (“-” for loss) | 245,878,004.50 | 38,437,780.63 |
| Less: Income tax expense | 62,647,086.56 | 8,672,460.66 |
| 4. Net profit (“-” for net loss) | 183,230,917.94 | 29,765,319.97 |
| 4.1 Net profit from continuing operations (“-” for net loss) | 183,230,917.94 | 29,765,319.97 |
| 4.2 Net profit from discontinued operations (“-” for net loss) | ||
| 5. Other comprehensive income, net of tax | -275,978.56 | -118,365.58 |
| 5.1 Items that will not be reclassified to profit or loss | -275,978.56 | -118,365.58 |
| 5.1.1 Changes caused by remeasurements on defined benefit schemes | ||
| 5.1.2 Other comprehensive income that will not be reclassified to profit or loss under the equity method | ||
| 5.1.3 Changes in the fair value of investments in other equity instruments | -275,978.56 | -118,365.58 |
| 5.1.4 Changes in the fair value arising from changes in own credit risk | ||
| 5.1.5 Other | ||
| 5.2 Items that will be reclassified to profit or loss | ||
| 5.2.1 Other comprehensive income that will be reclassified to profit or loss under the 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 Credit impairment allowance for investments in other debt obligations | ||
| 5.2.5 Reserve for cash flow hedges | ||
| 5.2.6 Differences arising from the translation of foreign currency-denominated financial statements | ||
| 5.2.7 Other | ||
| 6. Total comprehensive income | 182,954,939.38 | 29,646,954.39 |
| 7. Earnings per share | ||
| 7.1 Basic earnings per share | 0.3074 | 0.0499 |
| 7.2 Diluted earnings per share | 0.3074 | 0.0499 |
5. Consolidated Cash Flow Statement
Unit: RMB
| Item | H1 2023 | H1 2022 |
| 1. Cash flows from operating activities: | ||
| Proceeds from sale of commodities and rendering of services | 1,134,538,536.26 | 1,508,257,820.26 |
| Net increase in customer deposits and interbank deposits | ||
| Net increase in borrowings from the central bank | ||
| Net increase in loans from other financial institutions | ||
| Premiums received on original insurance contracts |
| Net proceeds from reinsurance | ||
| Net increase in deposits and investments of policy holders | ||
| Interest, handling charges and commissions received | ||
| Net increase in interbank loans obtained | ||
| Net increase in proceeds from repurchase transactions | ||
| Net proceeds from acting trading of securities | ||
| Tax rebates | 15,030,885.06 | 9,187,939.90 |
| Cash generated from other operating activities | 126,769,873.68 | 461,787,150.96 |
| Subtotal of cash generated from operating activities | 1,276,339,295.00 | 1,979,232,911.12 |
| Payments for commodities and services | 1,075,770,309.73 | 1,486,656,535.01 |
| Net increase in loans and advances to customers | ||
| Net increase in deposits in the central bank and in interbank loans granted | ||
| Payments for claims on original insurance contracts | ||
| Net increase in interbank loans granted | ||
| Interest, handling charges and commissions paid | ||
| Policy dividends paid | ||
| Cash paid to and for employees | 495,986,685.15 | 503,751,276.86 |
| Taxes paid | 157,276,244.25 | 278,354,981.59 |
| Cash used in other operating activities | 127,327,714.02 | 106,464,348.75 |
| Subtotal of cash used in operating activities | 1,856,360,953.15 | 2,375,227,142.21 |
| Net cash generated from/used in operating activities | -580,021,658.15 | -395,994,231.09 |
| 2. Cash flows from investing activities: | ||
| Proceeds from disinvestment | ||
| Return on investment | 63,120.00 | 0.00 |
| Net proceeds from the disposal of fixed assets, intangible assets and other long-lived assets | 73,664.52 | 33,054.00 |
| Net proceeds from the disposal of subsidiaries and other business units | ||
| Cash generated from other investing activities | ||
| Subtotal of cash generated from investing activities | 136,784.52 | 33,054.00 |
| Payments for the acquisition of fixed assets, intangible assets and other long-lived assets | 2,589,103.59 | 8,208,285.38 |
| Payments for investments | 1,644,822.69 | 240,634,030.00 |
| Net increase in pledged loans granted | ||
| Net payments for the acquisition of subsidiaries and other business units | ||
| Cash used in other investing activities | ||
| Subtotal of cash used in investing | 4,233,926.28 | 248,842,315.38 |
| activities | ||
| Net cash generated from/used in investing activities | -4,097,141.76 | -248,809,261.38 |
| 3. Cash flows from financing activities: | ||
| Capital contributions received | 0.00 | 1,260,000.00 |
| Including: Capital contributions by non-controlling interests to subsidiaries | 0.00 | 1,260,000.00 |
| Borrowings raised | 590,984,586.17 | 286,832,330.00 |
| Cash generated from other financing activities | ||
| Subtotal of cash generated from financing activities | 590,984,586.17 | 288,092,330.00 |
| Repayment of borrowings | 32,316,662.00 | 30,900,000.00 |
| Interest and dividends paid | 94,407,905.77 | 93,476,441.56 |
| Including: Dividends paid by subsidiaries to non-controlling interests | 245,000.00 | |
| Cash used in other financing activities | 15,224,062.82 | 12,142,998.09 |
| Subtotal of cash used in financing activities | 141,948,630.59 | 136,519,439.65 |
| Net cash generated from/used in financing activities | 449,035,955.58 | 151,572,890.35 |
| 4. Effect of foreign exchange rates changes on cash and cash equivalents | 2,054,469.55 | 2,438,091.50 |
| 5. Net increase in cash and cash equivalents | -133,028,374.78 | -490,792,510.62 |
| Add: Cash and cash equivalents, beginning of the period | 1,509,693,857.48 | 1,963,988,756.69 |
| 6. Cash and cash equivalents, end of the period | 1,376,665,482.70 | 1,473,196,246.07 |
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
| Item | H1 2023 | H1 2022 |
| 1. Cash flows from operating activities: | ||
| Proceeds from sale of commodities and rendering of services | 65,620,304.10 | 25,384,592.62 |
| Tax rebates | 0.00 | 0.00 |
| Cash generated from other operating activities | 720,171,786.00 | 1,332,729,141.98 |
| Subtotal of cash generated from operating activities | 785,792,090.10 | 1,358,113,734.60 |
| Payments for commodities and services | 30,896,291.92 | 31,342,993.24 |
| Cash paid to and for employees | 31,086,528.03 | 35,011,651.40 |
| Taxes paid | 39,797,238.94 | 25,455,041.33 |
| Cash used in other operating activities | 294,025,250.18 | 1,183,602,910.44 |
| Subtotal of cash used in operating activities | 395,805,309.07 | 1,275,412,596.41 |
| Net cash generated from/used in operating activities | 389,986,781.03 | 82,701,138.19 |
| 2. Cash flows from investing activities: |
| Proceeds from disinvestment | 0.00 | 0.00 |
| Return on investment | 63,120.00 | 0.00 |
| Net proceeds from the disposal of fixed assets, intangible assets and other long-lived assets | 0.00 | 209.00 |
| Net proceeds from the disposal of subsidiaries and other business units | 0.00 | 0.00 |
| Cash generated from other investing activities | 0.00 | 0.00 |
| Subtotal of cash generated from investing activities | 63,120.00 | 209.00 |
| Payments for the acquisition of fixed assets, intangible assets and other long-lived assets | 152,169.34 | 390,961.75 |
| Payments for investments | 148,000,000.00 | 389,000,000.00 |
| Net payments for the acquisition of subsidiaries and other business units | 0.00 | 0.00 |
| Cash used in other investing activities | 0.00 | 0.00 |
| Subtotal of cash used in investing activities | 148,152,169.34 | 389,390,961.75 |
| Net cash generated from/used in investing activities | -148,089,049.34 | -389,390,752.75 |
| 3. Cash flows from financing activities: | ||
| Capital contributions received | ||
| Borrowings raised | 0.00 | 125,000,000.00 |
| Cash generated from other financing activities | ||
| Subtotal of cash generated from financing activities | 0.00 | 125,000,000.00 |
| Repayment of borrowings | 30,800,000.00 | 30,800,000.00 |
| Interest and dividends paid | 13,132,759.86 | 13,015,483.64 |
| Cash used in other financing activities | 0.00 | 1,227,250.00 |
| Subtotal of cash used in financing activities | 43,932,759.86 | 45,042,733.64 |
| Net cash generated from/used in financing activities | -43,932,759.86 | 79,957,266.36 |
| 4. Effect of foreign exchange rates changes on cash and cash equivalents | 38,215.73 | 20,809.20 |
| 5. Net increase in cash and cash equivalents | 198,003,187.56 | -226,711,539.00 |
| Add: Cash and cash equivalents, beginning of the period | 528,268,054.39 | 808,411,401.68 |
| 6. Cash and cash equivalents, end of the period | 726,271,241.95 | 581,699,862.68 |
7. Consolidated Statements of Changes in Owners’ Equity
H1 2023
Unit: RMB
| Item | H1 2023 | ||||||||||||||
| Equity attributable to owners of the Company as the parent | Non-controlli | Total owners’ | |||||||||||||
| Share capi | Other equity instruments | Capital rese | Less: Trea | Other com | Specific rese | Surplus rese | General rese | Retained earn | Other | Subtotal | |||||
| Pref | Perp | Oth | |||||||||||||
| tal | erred shares | etual bonds | er | rves | sury stock | prehensive income | rve | rves | rve | ings | ng interests | equity | |||
| 1. Balance as at the end of the Reporting Period of the prior year | 595,979,092.00 | 80,488,045.38 | -3,854,377.95 | 48,886,605.81 | 3,691,056,182.73 | 4,412,555,547.97 | 56,255,522.46 | 4,468,811,070.43 | |||||||
| Add: Adjustment for change in accounting policy | |||||||||||||||
| Adjustment for correction of previous error | |||||||||||||||
| Adjustment for business combination under common control | |||||||||||||||
| Other adjustments | |||||||||||||||
| 2. Balance as at the beginning of the Reporting Period of the year | 595,979,092.00 | 80,488,045.38 | -3,854,377.95 | 48,886,605.81 | 3,691,056,182.73 | 4,412,555,547.97 | 56,255,522.46 | 4,468,811,070.43 | |||||||
| 3. Increase/ decrease in the period (“-” for decrease) | 0.00 | 0.00 | 1,404,020.27 | 0.00 | 0.00 | 0.00 | 4,110,169.73 | 5,514,190.00 | -6,502,188.58 | -987,998.58 | |||||
| 3.1 Total comprehensive income | 1,404,020.27 | 220,903,444.63 | 222,307,464.90 | -6,257,188.58 | 216,050,276.32 | ||||||||||
| 3.2 Capital increased and reduced by owners | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -1,644,822.69 | -1,644,822.69 | -1,644,822.69 | ||||||
| 3.2.1 Ordinary shares increased by owners | 0.00 | 0.00 | |||||||||||||
| 3.2.2 Capital increased by holders of other equity instruments | 0.00 | 0.00 | |||||||||||||
| 3.2.3 Share-based payments included in owners’ | 0.00 | 0.00 |
| equity | |||||||||||||||
| 3.2.4 Other | -1,644,822.69 | -1,644,822.69 | -1,644,822.69 | ||||||||||||
| 3.3 Profit distribution | -215,148,452.21 | -215,148,452.21 | -245,000.00 | -215,393,452.21 | |||||||||||
| 3.3.1 Appropriation to surplus reserves | 0.00 | 0.00 | |||||||||||||
| 3.3.2 Appropriation to general reserve | 0.00 | 0.00 | |||||||||||||
| 3.3.3 Appropriation to owners (or shareholders) | -215,148,452.21 | -215,148,452.21 | -245,000.00 | -215,393,452.21 | |||||||||||
| 3.3.4 Other | 0.00 | 0.00 | |||||||||||||
| 3.4 Transfers within owners’ equity | 0.00 | 0.00 | |||||||||||||
| 3.4.1 Increase in capital (or share capital) from capital reserves | 0.00 | 0.00 | |||||||||||||
| 3.4.2 Increase in capital (or share capital) from surplus reserves | 0.00 | 0.00 | |||||||||||||
| 3.4.3 Loss offset by surplus reserves | 0.00 | 0.00 | |||||||||||||
| 3.4.4 Changes in defined benefit schemes transferred to retained earnings | 0.00 | 0.00 | |||||||||||||
| 3.4.5 Other comprehensive income transferred to retained earnings | 0.00 | 0.00 | |||||||||||||
| 3.4.6 Other | 0.00 | 0.00 | |||||||||||||
| 3.5 | 0.00 | 0.00 |
| Specific reserve | |||||||||||||||
| 3.5.1 Increase in the period | 0.00 | 0.00 | |||||||||||||
| 3.5.2 Used in the period | 0.00 | 0.00 | |||||||||||||
| 3.6 Other | 0.00 | 0.00 | |||||||||||||
| 4. Balance as at the end of the period | 595,979,092.00 | 0.00 | 0.00 | 0.00 | 80,488,045.38 | 0.00 | -2,450,357.68 | 0.00 | 48,886,605.81 | 0.00 | 3,695,166,352.46 | 4,418,069,737.97 | 49,753,333.88 | 4,467,823,071.85 |
H1 2022
Unit: RMB
| Item | H1 2022 | ||||||||||||||
| Equity attributable to owners of the Company as the parent | Non-controlling interests | Total owners’ equity | |||||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury stock | Other comprehensive income | Specific reserve | Surplus reserves | General reserve | Retained earnings | Other | Subtotal | |||||
| Preferred shares | Perpetual bonds | Other | |||||||||||||
| 1. Balance as at the end of the Reporting Period of the prior year | 595,979,092.00 | 0.00 | 0.00 | 0.00 | 146,986,167.70 | 0.00 | -8,174,653.66 | 0.00 | 47,574,940.18 | 0.00 | 3,800,901,413.35 | 4,583,266,959.57 | 46,819,613.19 | 4,630,086,572.76 | |
| Add: Adjustment for change in accounting policy | |||||||||||||||
| Adjustment for correction of previous error | |||||||||||||||
| Adjustment for business combination under common control | |||||||||||||||
| Other adjustments | |||||||||||||||
| 2. Balance as at the beginning of the Reporting Period of the year | 595,979,092.00 | 0.00 | 0.00 | 0.00 | 146,986,167.70 | 0.00 | -8,174,653.66 | 0.00 | 47,574,940.18 | 0.00 | 3,800,901,413.35 | 4,583,266,959.57 | 46,819,613.19 | 4,630,086,572.76 | |
| 3. Increase/ decrease in the period (“-” for decrease) | -66,498,122.32 | 0.00 | 2,063,279.42 | 0.00 | -17,937,391.71 | 0.00 | -362,926,701.89 | -445,298,936.50 | -8,241,129.48 | -453,540,065.98 | |||||
| 3.1 Total comprehensive income | 2,063,27 | 250,802, | 252,865, | -9,50 | 243,364, | ||||||||||
| 9.42 | 157.71 | 437.13 | 1,129.48 | 307.65 | |||||||||||
| 3.2 Capital increased and reduced by owners | -66,498,122.32 | 0.00 | 0.00 | 0.00 | -17,937,391.71 | 0.00 | -208,463,077.04 | -292,898,591.07 | 1,260,000.00 | -291,638,591.07 | |||||
| 3.2.1 Ordinary shares increased by owners | 0.00 | 1,260,000.00 | 1,260,000.00 | ||||||||||||
| 3.2.2 Capital increased by holders of other equity instruments | 0.00 | 0.00 | |||||||||||||
| 3.2.3 Share-based payments included in owners’ equity | 0.00 | 0.00 | |||||||||||||
| 3.2.4 Other | -66,498,122.32 | -17,937,391.71 | -208,463,077.04 | -292,898,591.07 | -292,898,591.07 | ||||||||||
| 3.3 Profit distribution | -405,265,782.56 | -405,265,782.56 | -405,265,782.56 | ||||||||||||
| 3.3.1 Appropriation to surplus reserves | 0.00 | 0.00 | |||||||||||||
| 3.3.2 Appropriation to general reserve | 0.00 | 0.00 | |||||||||||||
| 3.3.3 Appropriation to owners (or shareholders) | -405,265,782.56 | -405,265,782.56 | -405,265,782.56 | ||||||||||||
| 3.3.4 Other | 0.00 | 0.00 | |||||||||||||
| 3.4 Transfers within owners’ equity | 0.00 | 0.00 | |||||||||||||
| 3.4.1 Increase in capital (or share capital) from capital reserves | 0.00 | 0.00 | |||||||||||||
| 3.4.2 Increase in capital (or | 0.00 | 0.00 |
| share capital) from surplus reserves | |||||||||||||||
| 3.4.3 Loss offset by surplus reserves | 0.00 | 0.00 | |||||||||||||
| 3.4.4 Changes in defined benefit schemes transferred to retained earnings | 0.00 | 0.00 | |||||||||||||
| 3.4.5 Other comprehensive income transferred to retained earnings | 0.00 | 0.00 | |||||||||||||
| 3.4.6 Other | 0.00 | 0.00 | |||||||||||||
| 3.5 Specific reserve | 0.00 | 0.00 | |||||||||||||
| 3.5.1 Increase in the period | 0.00 | 0.00 | |||||||||||||
| 3.5.2 Used in the period | 0.00 | 0.00 | |||||||||||||
| 3.6 Other | 0.00 | 0.00 | |||||||||||||
| 4. Balance as at the end of the period | 595,979,092.00 | 0.00 | 0.00 | 0.00 | 80,488,045.38 | 0.00 | -6,111,374.24 | 0.00 | 29,637,548.47 | 0.00 | 3,437,974,711.46 | 4,137,968,023.07 | 38,578,483.71 | 4,176,546,506.78 |
8. Statements of Changes in Owners’ Equity of the Company as the Parent
H1 2023
Unit: RMB
| Item | H1 2023 | |||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury stock | Other comprehensive income | Specific reserve | Surplus reserves | Retained earnings | Other | Total owners’ equity | |||
| Preferred shares | Perpetual bonds | Other | ||||||||||
| 1. Balance as at the end of the Reporting Period of the prior year | 595,979,092.00 | 53,876,380.11 | -2,742,841.65 | 48,886,605.81 | 1,105,473,319.87 | 1,801,472,556.14 | ||||||
| Add: Adjustment for change in accounting policy | ||||||||||||
| Adjustment for correction of | ||||||||||||
| previous error | ||||||||||||
| Other adjustments | ||||||||||||
| 2. Balance as at the beginning of the Reporting Period of the year | 595,979,092.00 | 53,876,380.11 | -2,742,841.65 | 48,886,605.81 | 1,105,473,319.87 | 1,801,472,556.14 | ||||||
| 3. Increase/ decrease in the period (“-” for decrease) | -275,978.56 | -31,917,534.27 | -32,193,512.83 | |||||||||
| 3.1 Total comprehensive income | -275,978.56 | 183,230,917.94 | 182,954,939.38 | |||||||||
| 3.2 Capital increased and reduced by owners | ||||||||||||
| 3.2.1 Ordinary shares increased by owners | ||||||||||||
| 3.2.2 Capital increased by holders of other equity instruments | ||||||||||||
| 3.2.3 Share-based payments included in owners’ equity | ||||||||||||
| 3.2.4 Other | ||||||||||||
| 3.3 Profit distribution | -215,148,452.21 | -215,148,452.21 | ||||||||||
| 3.3.1 Appropriation to surplus reserves | ||||||||||||
| 3.3.2 Appropriation to owners (or shareholders) | -215,148,452.21 | -215,148,452.21 | ||||||||||
| 3.3.3 Other | ||||||||||||
| 3.4 Transfers within owners’ equity | ||||||||||||
| 3.4.1 Increase in capital (or |
| share capital) from capital reserves | ||||||||||||
| 3.4.2 Increase in capital (or share capital) from surplus reserves | ||||||||||||
| 3.4.3 Loss offset by surplus reserves | ||||||||||||
| 3.4.4 Changes in defined benefit schemes transferred to retained earnings | ||||||||||||
| 3.4.5 Other comprehensive income transferred to retained earnings | ||||||||||||
| 3.4.6 Other | ||||||||||||
| 3.5 Specific reserve | ||||||||||||
| 3.5.1 Increase in the period | ||||||||||||
| 3.5.2 Used in the period | ||||||||||||
| 3.6 Other | ||||||||||||
| 4. Balance as at the end of the period | 595,979,092.00 | 53,876,380.11 | -3,018,820.21 | 48,886,605.81 | 1,073,555,785.60 | 1,769,279,043.31 |
H1 2022
Unit: RMB
| Item | H1 2022 | |||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury stock | Other comprehensive income | Specific reserve | Surplus reserves | Retained earnings | Other | Total owners’ equity | |||
| Preferred shares | Perpetual bonds | Other | ||||||||||
| 1. Balance as at the end of the Reporting Period of the prior year | 595,979,092.00 | 53,876,380.11 | -2,574,121.54 | 29,637,548.47 | 1,337,497,586.41 | 2,014,416,485.45 | ||||||
| Add: Adjustment for change in accounting policy | ||||||||||||
| Adjustment for correction of previous error | ||||||||||||
| Other adjustments | ||||||||||||
| 2. Balance as at the beginning of the Reporting Period of the year | 595,979,092.00 | 53,876,380.11 | -2,574,121.54 | 29,637,548.47 | 1,337,497,586.41 | 2,014,416,485.45 | ||||||
| 3. Increase/ decrease in the period (“-” for decrease) | -118,365.58 | -375,500,462.59 | -375,618,828.17 | |||||||||
| 3.1 Total comprehensive income | -118,365.58 | 29,765,319.97 | 29,646,954.39 | |||||||||
| 3.2 Capital increased and reduced by owners | ||||||||||||
| 3.2.1 Ordinary shares increased by owners | ||||||||||||
| 3.2.2 Capital increased by holders of other equity instruments | ||||||||||||
| 3.2.3 Share-based payments included in owners’ equity | ||||||||||||
| 3.2.4 Other | ||||||||||||
| 3.3 Profit distribution | -405,265,782.56 | -405,265,782.56 | ||||||||||
| 3.3.1 Appropriation to surplus reserves | ||||||||||||
| 3.3.2 Appropriation to owners (or shareholders) | -405,265,782.56 | -405,265,782.56 | ||||||||||
| 3.3.3 Other | ||||||||||||
| 3.4 Transfers within owners’ equity |
| 3.4.1 Increase in capital (or share capital) from capital reserves | ||||||||||||
| 3.4.2 Increase in capital (or share capital) from surplus reserves | ||||||||||||
| 3.4.3 Loss offset by surplus reserves | ||||||||||||
| 3.4.4 Changes in defined benefit schemes transferred to retained earnings | ||||||||||||
| 3.4.5 Other comprehensive income transferred to retained earnings | ||||||||||||
| 3.4.6 Other | ||||||||||||
| 3.5 Specific reserve | ||||||||||||
| 3.5.1 Increase in the period | ||||||||||||
| 3.5.2 Used in the period | ||||||||||||
| 3.6 Other | ||||||||||||
| 4. Balance as at the end of the period | 595,979,092.00 | 53,876,380.11 | -2,692,487.12 | 29,637,548.47 | 961,997,123.82 | 1,638,797,657.28 |
III Company Profile
Shenzhen Properties & Resources Development (Group) Ltd. (hereinafter referred to as “the Company” or “Company”) wasincorporated based on the reconstruction of Shenzhen Properties & Resources Development Co., Ltd. after obtaining approval ofZFBF [1991] No. 831 from People’s Government of Shenzhen Municipality. It was registered with Shenzhen Industrial andCommercial Administration Bureau on 17 January 1983 with Shenzhen as its headquarters. Now the Company holds the businesslicense for legal person with the registration number/unified social credit code of 91440300192174135N. The registered capital wasRMB595,979,092 with the total shares of 595,979,092 (RMB1 face value per share), among which, restricted public shares:
1,898,306 A shares and 0 B shares; unrestricted public shares: 526,475,543 A shares and 67,605,243 B shares. The stock of theCompany has been listed on the Shenzhen Stock Exchange on 30 March 1992.The Company is in the real estate sector. Its main business includes development of real estate and sale of commercial housing,construction and management of buildings, house rent, supervision of construction, domestic trading and materials supply and
marketing (excluding exclusive dealing and monopoly sold products and commodities under special control to purchase). Mainproducts or services rendered mainly include the development and sales of commercial residential housing; property management;buildings and the building devices maintenance, garden afforest and cleaning service; property leasing; supervise and management ofthe engineering; retails of the Chinese food, Western-style food and wines, and etc.The financial statements were approved and authorized for issue by the 19
th Meeting of the 10
thBoard of Directors of the Companyon 25 August 2023.The consolidation scope of the Company’s consolidated financial statements was determined based on the control. There were 62subsidiaries including Shenzhen Huangcheng Real Estate Co., Ltd., Dongguan Guomao Changsheng Real Estate Development Co.,Ltd., Shenzhen International Trade Center Property Management Co., Ltd. included in the consolidation financial statements in thisreport. Please refer to the Note VIII and Note IX of the financial report for details.IV Basis for Preparation of Financial Statements
1. Preparation Basis
Based on the continuing operation, the financial statements of the Company are prepared in accordance with the actualtransactions, governing provisions of the Accounting Standards for Business Enterprises and the following major accountingpolicies and estimates.
2. Continuation
There was no such case where the sustainable operation ability within 12 months since the end of the Reporting Period was highlydoubted.V. Important Accounting Policies and EstimationsIndication of specific accounting policies and estimations:
1. Statement for Complying with the Accounting Standard for Business Enterprise
The financial statement prepared by the Company complies with the requirements of the latest accounting standards for businessenterprises as well as the application guidelines, interpretations and other relevant regulations (hereinafter referred to as the“accounting standards for business enterprises”) issued by the Ministry of Finance. It reflects the Company’s financial conditions,operating results, cash flow and other related information in a truthful and complete manner.In addition, in the preparation of the financial report, reference was made to the presentation and disclosure requirements of the Rulefor Information Disclosure by Companies Offering Securities to the Public No. 15 - General Provisions on Financial Reports (2014Revision) and the Notice on Related Matters of the Implementation of New Accounting Standards for Business Enterprises by ListedCompanies (KJBH [2018] No. 453).
2. Fiscal Period
The fiscal year of the Company is a solar calendar year, which is from 1 January to 31 December.
3. Operating Cycle
Except for the real estate industry, other businesses run by the Company have relatively short operating cycles according to theclassification standard of 12-month’s liquidity of assets and liabilities. The operating cycle of the real estate industry shall begenerally more than 12 months from real estate development to cash the sales. The specific cycle shall be determined by the
development project and classified by the assets and liabilities liquidity.
4. Standard Currency of Accounts
The Company adopts Renminbi as a standard currency of accounts.
5. Accounting Process of Business Combinations under the Same Control and not under the Same Control
1. Accounting Process of Business Combinations under the Same Control
For business combination under the same control achieved through one transaction or step by step through multiple transactions bythe Company, the assets and liabilities acquired in a business combination are measured at the carrying value of the acquiree in theconsolidated financial statements of the ultimate controlling party at the date of combination. The difference between the carryingvalue of net assets acquired by the Company and the carrying value of the combination consideration paid (or the total nominal valueof shares issued) is referred to for adjusting capital reserve; if capital reserve is not sufficient to offset the difference, then retainedearnings are adjusted.
2. Accounting Process of Business Combinations not under the Same Control
The Group shall recognize the positive balance between the combination costs and the fair value of the identifiable net assetsobtained from the acquiree on purchase date as goodwill. If the combination costs are less than the fair value of the identifiable netassets obtained from the acquire, the Company shall recheck the various identifiable assets and liabilities obtained from the acquire,fair value with liabilities, and measurement of combination costs. If the combination costs are less than the fair value of theidentifiable net assets obtained from the acquire after recheck, the Company shall the record the balance into the profit and loss of thecurrent period.Business combinations not under the same control achieved step by step through multiple transactions should be treated in thefollowing order:
(1) Adjusting the initial investment cost of long-term equity investment If the equity held prior to the date of purchase is accountedunder the equity method, the equity is remeasured at the fair value on the purchase date, and the difference between the fair value andits carrying value is included in the investment income of the current period; if the equity in the acquiree held prior to the purchasedate involves other comprehensive income or changes in other owners' equity under the equity method of accounting, it is convertedinto income for the current period on the purchase date, except for other comprehensive income arising from the re-measurement ofthe investee's net liabilities of the defined benefit pension plan or changes in net assets of the defined benefit plan and changes in thefair value of investments in other equity instruments held.
(2) Determining the goodwill (or the amount included in the profit or loss for the current period) When comparing the initialinvestment cost of long-term equity investments adjusted in the first step with the share of the fair value of the identifiable net assetsof the subsidiary on the purchase date, if the former is more than the latter, the difference between the former and the latter isrecognized as goodwill; if the former is less than the latter, the difference is included in profit or loss for the current period.Step-by-step disposal of equity through multiple transactions that results in loss of control over the subsidiary
(1) Principles for determining whether transactions in the process of step-by-step disposal of equity that results in the loss of controlover a subsidiary constitute a "package deal"The multiple transactions are generally regarded as a "package deal" in accounting treatment if the clauses, conditions, and economicimpacts of various transactions fall under one or more of the following circumstances:
1) These transactions are reached concurrently or after the impact thereof on each other is taken into consideration.
2) These transactions may achieve a complete business result only as a whole.
3) The occurrence of a transaction depends on the occurrence of, at a minimum, one another transaction.
4) A transaction is considered uneconomical separately but is considered economical when other transactions are also taken intoconsideration.
(2) Accounting treatment when transactions in the process of step-by-step disposal of equity that results in the loss of control over asubsidiary constitute a "package deal"If the transactions in the disposal of equity of a subsidiary that results in the loss of control constitute a package deal, each transactionshould be accounted for as a transaction that disposes of and loses control over a subsidiary; however, the difference between thedisposal price and the share of the net assets of the subsidiary corresponding to the disposal of the investment for each disposal priorto the loss of control should be recognized as other comprehensive earnings in the consolidated financial statements and transferredto profit or loss for the current period when the Company lost the control.In the consolidated financial statements, the remaining equity should be remeasured at fair value on the date of loss of control. Thesum of the consideration obtained from the disposition of equity and the fair value of the residual equity minus the Company'sportion of net assets in the former subsidiary calculated from the date of combination on an ongoing basis at the original shareholdingratio is included in the return on investment for the current period when the Company lost the control. Other comprehensive incomerelated to the equity investments in the former subsidiary should be included in the return on investment or retained earnings for thecurrent period when the Company lost the control.
(3) Accounting treatment when transactions in the process of step-by-step disposal of equity that results in the loss of control over asubsidiary do not constitute a "package deal"If the Company disposes of investments made in its subsidiary without losing control over the subsidiary, in the consolidatedfinancial statements, the difference between the payment for equity disposed of and the Company's corresponding portion of netassets in the subsidiary is included in the capital reserve. If the capital reserve is insufficient for offset, the retained earnings shouldbe adjusted.If the disposal of investments made in its subsidiary results in a loss of control over the subsidiary, in the consolidated financialstatements, the remaining equity should be remeasured at the fair value on the date of loss of control. The sum of the considerationobtained from the disposition of equity and the fair value of the residual equity minus the Company's portion of net assets in theformer subsidiary calculated from the date of combination on an ongoing basis at the original shareholding ratio is included in thereturn on investment for the current period when the Company lost the control. Other comprehensive income related to the equityinvestments in the former subsidiary should be included in the return on investment or retained earnings for the current period whenthe Company lost the control.
6. Methods for Preparing Consolidated Financial Statements
Based on the financial statements of the Company as the parent and its subsidiaries and other related materials, the consolidatedfinancial statements were prepared by the Group as the parent according to Accounting Standards for Enterprises No. 33 –Consolidated Financial Statements.
7. Classification of Joint arrangements and Accounting Treatment of Joint Operations
1. Identification and classification of joint arrangements
A joint arrangement is an arrangement over which two or more parties have joint control. A joint arrangement has the followingcharacteristics: (1) Each participant is bound by the arrangement; (2) two or more parties of the joint arrangement exercise joint
control over the arrangement. No one party can control the arrangement alone, and any party with joint control over the arrangementcan prevent the other party or combination of parties from controlling the arrangement alone.Joint control refers to the common control over a particular arrangement according to relevant agreement, and that the decisions onrelevant activities under such arrangement are subject to unanimous consent from the parties sharing the joint control.Joint arrangements are divided into joint operations and joint ventures. A joint operation is a joint arrangement whereby the party tojoint arrangement has rights to the assets, and obligations for the liabilities related to the arrangement. A joint venture is a jointarrangement whereby the party to joint arrangement has rights to the net assets of the arrangement.
2. Accounting treatment of joint arrangements
A party to a joint operation shall recognize the following items related to its share of interest in the joint operation and conductaccounting treatment for them in accordance with the relevant provisions of the Accounting Standard for Business Enterprises: (1)Recognition of assets held separately and of assets held jointly in proportion to its share; (2) recognition of liabilities incurredseparately and of liabilities incurred jointly in proportion to its share; (3) recognition of revenue from the sale of its share of theoutput of the joint operation; (4) recognition of revenue from the sale of output of the joint operation in proportion to its share; (5)recognition of expenses incurred separately and of expenses incurred in the joint operation in proportion to its share.The party to a joint venture should conduct accounting treatment in accordance with relevant provisions of the Accounting Standardsfor Business Enterprises No. 2 - Long-term Equity Investment.
8. Recognition Standard for Cash and Cash Equivalents
In the Company’s understanding, cash and cash equivalents include cash on hand, any deposit that can be used for cover, and short-term (usually due within 3 months since the day of purchase) and high circulating investments, which are easily convertible intoknown amount of cash and whose risks in change of value are minimal.
9. Foreign Currency Businesses and Translation of Foreign Currency Financial Statements
(1) Accounting treatments for translation of foreign currency business
As for a foreign currency transaction in its initial recognition, the amount in the foreign currency shall be translated into the amountin the Renminbi at the spot exchange rate of the transaction date. On balance sheet date, the foreign currency monetary items shall betranslated as the spot exchange rate on the balance sheet date, the balance occurred thereof shall be recorded into the profits andlosses at the current period except that the balance of exchange arising from the principal and interests of foreign currencyborrowings for the purchase and construction or production of assets eligible for capitalization. The foreign currency non-monetaryitems measured at the historical cost shall still be translated at the spot exchange rate on the transaction date, of which the amount offunctional currency shall not be changed. The foreign currency non-monetary items measured at the fair value shall be translated atthe spot exchange rate on the confirming date of fair value, of which the balance of exchange shall be included into the profit andloss of the current period or other comprehensive income.
(2) Translation of foreign currency financial statements
The asset and liability items in the balance sheets shall be translated at a spot exchange rate on the balance sheet date. Among theowner’s equity items, except for the items as “retained earnings”, other items shall be translated at the spot exchange rate at the timewhen they are incurred. The income and expense items in the income statements shall be translated at the spot exchange rate at thetime when they are incurred. The difference from translation of foreign currency financial statements thereof shall be recognized ascomprehensive income.
10. Financial Instruments
1. Recognition and derecognition of financial instruments
When the Group becomes a party to a financial instrument contract, it recognizes relevant financial assets or financial liabilities.All regular acquisition or sales of financial assets are recognized and derecognized on a trading day basis. Regular acquisition orsales of financial assets means delivering financial assets within the time limit of laws, regulations and usual market practices and inline with contract terms. The trading day refers to the date when the Group promises to acquire or sell financial assets.Financial assets (or part of financial assets, or part of a set of similar financial assets) are derecognized, i.e., written off from itsaccount and balance sheet, if the following conditions are met:
(1) The right to receive cash flows from financial assets has expired;
(2) The right to receive cash flows from the financial assets is transferred, or the obligation to pay the full amount of cash flowsreceived to a third party in a timely manner is assumed under a "pass-through agreement"; and (a) substantially almost all the risksand rewards of its ownership of the financial assets are transferred, or (b) control over the financial asset is relinquished, althoughsubstantially all the risks and rewards of its ownership of the financial assets are neither transferred nor retained.
2. Classification and measurement of financial assets
At initial recognition, according to the business model of managing financial assets and the contractual cash flow characteristics offinancial assets, financial assets of the Group are classified into the following categories: Financial assets measured at the amortizedcost, financial assets measured at fair value through other comprehensive income of the current period, and financial assets measuredat fair value through profit and loss for the current period. The subsequent measurement of financial assets depended on theircategories.The Group's classification of financial assets is based on the Group's business model for managing financial assets and the cash flowcharacteristics of the financial assets.
(1) Financial assets measured at amortized cost
Financial assets that meet both of the following conditions shall be classified as financial assets measured at amortized cost: TheGroup's business model of managing the financial assets aims at obtaining contractual cash flows; and, as stipulated by contractclauses of the financial assets, the cash flows generated on a specific date are merely for the payment of principal or interest from theunpaid principal. Such financial assets are subsequently measured at amortized cost using the effective interest method. Gain or lossarising from derecognition or amortization using the effective interest method is included in profit and loss for the current period.
(2) Debt instrument investment measured at fair value through other comprehensive income
Financial assets that meet all the following conditions shall be classified as financial assets measured at fair value through othercomprehensive income: The Group's business model of managing the financial assets aims at obtaining contractual cash flows as wellas selling financial assets; and, as stipulated by contract clauses of the financial assets, the cash flows generated on a specific date aremerely for the payment of principal or interest from the unpaid principal. Such financial assets shall be subsequently measured at fairvalue. The discount or premium is amortized using the effective interest method and recognized as interest income or expense.Except for impairment losses or gains and exchange differences that are recognized as profit and loss for the current period, changesin the fair value of such financial assets shall be recognized as other comprehensive income, until the financial assets arederecognized when accumulative gains or losses shall be transferred to profit and loss for the current period. Interest income relatedto such financial assets is included in profit or loss for the current period.
(3) Equity instrument investment measured at fair value through other comprehensive income
For financial assets measured at fair value through other comprehensive income that are irrevocably chosen and designated by theGroup from some non-trading equity instruments, the relevant dividend income shall be included in profit and loss for the currentperiod and changes in the fair value shall be recognized as other comprehensive income, until the financial assets are derecognizedwhen accumulative gains or losses shall be transferred to retained earnings.
(4) Financial assets measured at fair value through profit and loss for the current period
The aforementioned financial assets measured at amortized cost and financial assets other than those measured at fair value throughother comprehensive income are classified as financial assets measured at fair value through profit and loss for the current period. Atinitial recognition, in order to eliminate or significantly reduce accounting mismatch, financial assets can be designated as financialassets measured at fair value through profit or loss for the current period. Such financial assets shall be measured at fair value, and allchanges in fair value are included in the profit and loss for the current period.When and only when the Group changes its business model of managing financial assets, all relevant financial assets affected will bere-classified.For financial assets measured at fair value through profit and loss for the current period, transaction costs are directly included inprofit and loss for the current period. For other types of financial assets, related transaction costs are included in their initialrecognized amounts.
3. Classification and measurement of financial liabilities
At initial recognition, the financial liabilities of the Group are classified into the following categories: Financial liabilities measuredat the amortized cost, and financial liabilities measured at fair value through profit and loss for the current period.Financial liabilities can be designated as financial liabilities measured at fair value through profit or loss for the current period atinitial measurement if one of the following conditions is met: (1) The designation can eliminate or significantly reduce accountingmismatch; (2) the management and performance evaluation of a portfolio of financial liabilities or a portfolio of financial assets andfinancial liabilities are based on fair value in accordance with the Group's risk management or investment strategy as set out in aformal written document, and are reported to key management personnel on this basis within the Group; (3) The financial liabilitiescontain embedded derivatives require splitting.The Group determines the classification of financial liabilities at initial recognition. For financial liabilities measured at fair valuethrough profit and loss for the current period, transaction costs are directly included in profit and loss for the current period. For othertypes of financial liabilities, related transaction costs are included in their initial recognized amounts.The subsequent measurement of financial liabilities depended on their categories:
(1) Financial liabilities measured at amortized cost
Such financial liabilities shall be subsequently measured at amortized cost using the effective interest method.
(2) Financial liabilities measured at fair value through profit and loss for the current period
Financial liabilities measured at fair value through profit or loss for the current period include trading financial liabilities (includingderivatives that are financial liabilities) and financial liabilities designated as at fair value through profit or loss at initial recognition.
4. Financial instrument offset
The net amount after financial assets and financial liabilities offset each other is reported in the balance sheet if both of the followingconditions are met: The Group had a currently enforceable legal right to offset the recognized amounts; the Group planned to settlethem on a net basis or to realize the financial assets and pay off the financial liabilities simultaneously.
5. Impairment of financial instrument
(1) Impairment measurement and accounting handling of financial instrument
Based on expected credit loss, the Company conducts impairment handling and confirms loss reserve for financial assets which ismeasured by amortized cost, debt instrument investment which is measured by fair value and whose change is calculated into othercomprehensive profits, accounts receivable of rental, loan commitment which is beyond financial debt classified as the one which ismeasured by fair value and whose change is calculated into current profits and losses, financial debt which does not belong to the onewhich is measured by fair value and whose change is calculated into current profits or losses, or financial guarantee contract offinancial debt which is formed when it does not belong to financial asset transfer and doesn’t conform to confirmation condition oftermination or keeps on being involved in transferred financial asset.Expected credit loss refers to weighted average of credit loss of financial instrument which takes the risk of contract breachoccurrence as the weight. Credit loss refers to the difference between all contract cash flow which is converted into cash according toactual interest rate and receivable according to contract and all cash flow which to be charged as expected, i.e. current value of allcash shortage. Among it, as for financial asset purchased or original which has had credit impairment, it should be converted intocash according actual interest rate of this financial asset after credit adjustment.As for financial asset purchased or original which has had credit impairment, the Company only confirms cumulative change ofexpected credit loss within the whole duration after initial confirmation on the balance sheet date as loss reserve.As for accounts receivable which don’t include major financing contents or the Company does not consider financing contents incontract which is less than one year, the Company applies simplified measurement method, and measures loss reserve according toamount of expected credit loss within the whole duration.As for account receivable of rental and accounts receivable including major financing contents, the Company applies simplifiedmeasurement method, and measure loss reserve according to amount of expected credit loss within the whole duration.As for financial asset beyond above mentioned measurement methods, the Company evaluates whether its credit risk has increasedobviously since the initial confirmation on each balance sheet date. In case credit risk has increased obviously, the Companymeasures the loss reserve according to amount of expected credit loss within the whole duration; in case the credit risk does notincrease obviously, the Company measures loss reserve according to the amount of expected credit loss in next 12 months.By utilizing obtainable rational and well grounded information, including forward-looking information, comparing the risk ofcontract breach on balance sheet date and risk of contract breach on initial confirmation date, the Company confirms whether thecredit risk of financial instrument has increased obviously from initial confirmation.On balance sheet date, in case the Company judges that the financial instrument just has relatively low credit risk, then it will beassumed that credit risk of the financial instrument has not increased obviously.Based on single financial instrument or financial portfolio, the Company evaluates expected credit risk and measures expected creditloss. When based on financial instrument portfolio, the Company takes common risk characteristics as the basis, and divides financialinstruments into different portfolios.The Company measures expected credit loss again on each balance sheet date, the increase of loss reserve or amount which istransfer back generated by it is calculated into current profits and losses as impairment profits or losses. As for financial asset whichis measured by amortized cost, loss reserve offsets the carrying value of the financial asset listed in the balance sheet; as for debtinvestment which is measured by fair value and whose change is calculated into other comprehensive profits, the Company confirmsits loss reserve in other comprehensive profits and does not offset the carrying value of the financial asset.
(2) Financial instruments assessing expected credit risk by groups and measuring expected credit losses
| Item | Recognition basis | Method of measuring expected credit losses |
| Other receivables-intercourse funds among related party group within the consolidation scope | Accounts nature | Consulting historical experience in credit losses, combining actual situation and prediction for future economic situation, the group’s expected credit loss rate shall be accounted through exposure at default and the expected credit loss rate within the next 12 months or the entire life |
| Other receivables-interest receivable group | ||
| Other receivables-other intercourse funds among related party group | ||
| Other receivables-credit risk characteristics | Aging group | Consulting historical experience in credit losses, |
| group | combining actual situation and prediction for future economic situation, the group’s expected credit loss rate shall be accounted through exposure at default and the expected credit loss rate within the next 12 months or the entire life |
(3) Accounts receivable with expected credit losses measured by groups
① Specific groups and method of measuring expected credit loss
| Item | Recognition basis | Method of measuring expected credit losses |
| Bill type | Consulting historical experience in credit losses, combining actual situation and prediction for future economic situation, the group’s expected credit loss rate shall be accounted through exposure at default and the expected credit loss rate within the entire life | |
| Trade acceptance bills receivable | ||
| Accounts receivable-other intercourse funds among related party group | Account nature | Consulting historical experience in credit losses, combining actual situation and prediction for future economic situation, the group’s expected credit loss rate shall be accounted through exposure at default and the expected credit loss rate within the entire life |
Accounts receivable-credit risk characteristicsgroup
| Accounts receivable-credit risk characteristics group | Aging group | Prepare the comparative list between aging of accounts receivable and expected credit loss rate over the entire life by consulting historical experience in credit losses, combining actual situation and prediction for future economic situation |
② Accounts receivable-the comparative list between aging of common customer group and expected credit loss rate over the entirelife
| Aging | Expected credit loss rate of accounts receivable (%) |
| Within 1 year (inclusive, the same below) | 3.00 |
| 1 to 2 years | 10.00 |
2 to 3 years
| 2 to 3 years | 30.00 |
| 3 to 4 years | 50.00 |
| 4 to 5 years | 80.00 |
| Over 5 years | 100.00 |
6. Financial asset transfer
Financial assets are derecognized if the Group has transferred almost all the risks and rewards of its ownership transferred to thetransferor; financial assets are not derecognized if the Group has retained almost all the risks and rewards of its ownership.If the Group has neither transferred nor retained almost all the risks and rewards of its ownership of the transferred financial assets, itwill be treated respectively according to the following circumstances: If the control over the financial assets is waived, relevantfinancial assets shall be derecognized, and the assets and liabilities arising from them shall be recognized; if the control over thefinancial assets is not waived, relevant financial assets shall be recognized based on the extent of continuing involvement withtransferred financial assets, and related liabilities shall be recognized accordingly.If continuing involvement is provided by way of financial guarantee for the transferred financial assets, the assets resulting from thecontinuing involvement are recognized at the lower of the carrying value of the financial assets and the financial guarantee amount.The financial guarantee amount refers to the maximum amount of the consideration received that will be required to be repaid.
11. Notes Receivable
Refer to Note V 10 Financial Instruments of the financial statements for details.
12. Accounts Receivable
Refer to Note V 10 Financial Instruments of the financial statements for details.
13. Accounts Receivable Financing
Not applicable.
14. Other Receivables
Recognition and accounting treatment methods regarding expected credit losses of other receivablesRefer to Note V 10 Financial Instruments of the financial statements for details.
15. Inventory
(1) Inventories Classification
Inventories include development land held for sale or consumption in the process of development and operation, developmentproducts, temporarily leased development products which intended for sale, relocation housing, stock materials, inventory equipment,and low-value consumables, etc., as well as development costs in the process of development.
(2) Cost Flow Assumption
1) Send-out materials shall adopt the moving weighted average method.
2) During the development of the project, the development land shall be included in the development cost of the project by the floorarea apportion of the developed products.
3) Send-out developed products shall be accounted by specific identification method.
4) The temporarily leased development products which intended for sale and relocation housing shall be amortized averagely bystages according to the expected useful life of the same kind of fixed assets of the Company.
5) If the public supporting facilities are completed earlier than the relevant development products, after the final account of the publicsupporting facilities， it shall be account into the development cost of the relevant development projects according to the buildingarea; If the public supporting facilities are completed later than the relevant development products, the relevant development productsshall withhold the public supporting facilities fees, and adjust the relevant development product costs according to the differencebetween the actual occurrence and the withhold amount after the completed public supporting facilities' final accounts.
(3) Recognition basis of Net Realizable Value of Inventory
On the balance sheet date, inventory shall be measured at the lower of cost or net realizable value, and provision shall be made forfalling price of inventories on the ground of the difference between the cost of each item of inventories and the net realizable value.Inventories directly for sale, under normal producing process, to the amount after deducting the estimated sale expense and relevanttaxes from the estimated sell price of the inventory, the net realizable value has been recognized; inventories which need to beprocessed, under normal producing process, to the amount after deducting the estimated cost of completion, estimated sale expenseand relevant taxes from the estimated sale price of produced finished goods, the net realizable value has been recognized; on thebalance sheet date, in the same item of inventories, if some have contractual price agreement while others do not, the net realizablevalue shall be recognized respectively and compared with their cost, and the amount of provision withdrawal or reversal for fallingprice of inventories shall be recognized respectively.
(4) Inventory System for Inventories
Inventory system: Perpetual inventory system
(5) Amortization Method of the Low-value Consumption Goods and Packing Articles
1) Low-value Consumption Goods
One-off amortization method
2) Packing Articles
One-off amortization method
16. Contract Assets
The Company presents contract assets or contract liabilities on the balance sheet according to the relationship between the fulfillmentof its contract performance obligations and its customers’ payment. Considerations that the Company has the right to collect for
commodities transferred or services provided to customers (except for accounts receivable) are presented as contract assets.For contract assets that do not contain significant financing components, the Company uses the simplified model of expected creditloss, measuring the loss provision according to an amount that is equivalent to the amount of expected credit loss of the entireduration. The increased loss provision or reversed amount thereof shall be recorded into the current profit or loss as impairmentlosses or gains.For contract assets that contain significant financing components, the Company has made the accounting policy choice and selectedthe simplified model of expected credit loss, measuring the loss provision according to an amount that is equivalent to the amount ofexpected credit loss of the entire duration. The increased loss provision or reversed amount thereof shall be recorded into the currentprofit or loss as impairment losses or gains.
17. Contract Costs
Contract costs comprise contract performance cost and contract acquisition cost.The cost incurred by the Company from performing a contract is recognized into an asset as contract performance cost when it meetsthe following conditions:
This cost directly relates to an existing contract or a contract expected to be acquired. It consists of direct labor, direct materials,manufacture costs (or similar costs), costs specified to be borne by the customer and other costs incurred from this contract solely.This cost has increased the Company’s sources that are used to fulfill its contract performance obligations in the future.This cost is expected to be recovered.An incremental cost that is incurred by the Company for acquiring a contract and expected to be recovered is recognized into an assetas contract acquisition cost. However, for such asset with an amortization period of less than one year, the Company recognizes theminto current profit/loss at their occurrence.Assets related to contract costs are amortized on the same basis for recognizing the revenue from commodities or services related tosuch assets.When the carrying value of an asset related to contract costs is higher than the difference between the following two items, theCompany will withdraw impairment provision for the exceeded part and recognize it as asset impairment loss:
Residual consideration expected to be gained from transferring commodities and services related to this asset;Costs expected to be incurred from transferring such commodities or services.When the aforementioned asset impairment provision is reversed later, the carrying value of the asset after the reversal should notexceed its carrying value on the reversal date under the assumption of no withdrawal of impairment provision.
18. Assets Held for Sale
The Company divides its components (or non-current assets) meeting the following conditions into available for sale assets: (1)Assets can be sold immediately under the current conditions according to the practice of selling such assets or disposal groups insimilar transactions; (2) The sale is likely to occur, and a resolution has been made on a sale plan and a firm purchase commitment isobtained (a firm purchase commitment refers to a legally binding purchase agreement signed between an enterprise and other parties,which contains important terms such as transaction price, time and severe penalty for breach of contract to minimize the possibilityof major adjustment or cancellation of the agreement. The sale is expected to be completed within a year. It has been approved byrelevant authorities or regulatory authorities according to relevant regulations.The Company adjusts the estimated net residual value of available for sale assets to the net amount of its fair value minus the sellingexpenses (which shall not exceed the original book value of the assets available for sale). The difference between the original bookvalue and the adjusted estimated net residual value shall be included in the current profit and loss as the loss of asset impairment, andprovisions for impairment of assets available for sale shall be made. For the amount of impairment loss of disposal group availablefor sale recognized, the book value of goodwill of the disposal group shall be offset first, and then the book value of disposal groupshall be offset in proportion according to the share of the book value of non-current assets in the disposal group measured accordingto relevant Standard.
When the net amount of fair value of non-current assets available for sale minus the selling expenses increases on the subsequentbalance sheet date, the amount previously written down shall be restored and reversed within the amount of asset impairment lossrecognized after being classified as available for sale assets, and the reversed amount shall be included in the current profits andlosses. The impairment loss of assets recognized before being classified as available for sale assets shall not be reversed. When thenet amount of fair value of disposal group available for sale minus the selling expenses increases on the subsequent balance sheetdate, the amount previously written down shall be restored and reversed within the amount of asset impairment loss recognized asnon-current assets in the disposal group measured according to this Standard after being classified into the categories available forsale assets, and the reversed amount shall be included in the current profits and losses. The book value of goodwill that has beenoffset and the impairment loss of non-current assets measured according to relevant Standard shall not be reversed before they areclassified as available for sale assets. The subsequent reversal amount of asset impairment loss recognized as disposal groupavailable for sale shall be increased in proportion to the share of the book value of non-current assets in the disposal group, exceptgoodwill, which are measured according to relevant Standard. In case that an enterprise loses its control over a subsidiary due to saleof its investment in the subsidiary, the investment in the subsidiary to be sold shall be divided into the available for sale category inindividual financial statement of the parent company when the proposed investment in the subsidiary meets the conditions forclassification of available for sale category, and all assets and liabilities of the subsidiary shall be classified into available for salecategory in the consolidated financial statements, no matter whether the enterprise retains part of equity investment after the sale.
19. Investments in Debt Obligations
Not applicable.
20. Investments in other Debt Obligations
Not applicable.
21. Long-term Receivable
Refer to Note V-10. Financial Instrument for details.
22. Long-term Equity Investments
(1) Judgment of Joint Control and Significant Influences
The term "joint control" refers to the joint control over an arrangement in accordance with the related agreements, which does notexist unless the participants sharing the control power agree with each other about the related arranged activity. The term "significantinfluences" refers to the power to participate in making decisions on the financial and operating policies of an enterprise, but not tocontrol or do joint control together with other parties over the formulation of these policies.
(2) Recognition of Investment Cost
1) If the business combination is under the common control and the acquirer obtains long-term equity investment in the considerationof cash, non-monetary asset exchange, bearing acquiree’s liabilities, or the issuance of equity securities, the initial cost is the carryingamount of the proportion of the acquiree’s owner’s equity at the acquisition date. The difference between the initial cost of the long-term equity investment and the carrying amount of the paid combination or the total amount of the issued shares should be adjustedto capital surplus. If the capital surplus is not sufficient for adjustment, retained earnings are adjusted respectively.When a long-term equity investment is formed from the business combination under common control through the Company’smultiple transactions step by step, the treatment shall be carried out based on whether the transactions constitute the “package deal”.If they do, the accounting treatment shall be carried out on the basis of assuming all transactions as one transaction with theacquisition of control. If they do not, the initial investment cost shall be the portion of the carrying value of acquiree’s net assetsentitled in the consolidated financial statements of the final controller after the consolidation. The difference between the initialinvestment cost of the long-term equity investment on the combination date and the carrying value of the investment before thecombination plus the carrying value of the newly-paid consideration for the acquisition of the shares on the consolidation date shallbe adjusted to capital reserve; if the capital reserve is insufficient for the adjustment, retained earnings should be adjusted accordingly.
2) For those formed from the business combination under different control, the initial investment cost is the fair value of thecombination consideration paid on the acquisition date.When a long-term equity investment is formed from the business combination under different control through the Company’smultiple transactions step by step, the accounting treatment shall be carried out based on whether the financial statements areindividual or consolidated:
① In individual financial statements, the initial investment cost accounted in cost method is the sum of the carrying value of theequity investment originally held and the cost of new investment.
② In consolidate financial statements, judge whether the transactions constitute the “package deal”. If they do, the accountingtreatment shall be carried out on the basis of assuming all transactions as one transaction with the acquisition of control. If they donot, for the acquiree’s equity held before the acquisition date, re-measurement shall be carried out according to the fair value of theequity on the acquisition date and the difference between the fair value and the carrying value shall be recorded into currentinvestment income; if the acquiree’s equity held before the acquisition date involves other comprehensive income accounted inequity method, other comprehensive income related to it shall be transferred into the income for the period in which the acquisitiondate falls, with the exception of the other comprehensive incomes occurred because of the changes of net liabilities or net assets ofthe defined benefit pension plans be re-measured for setting by the investees.
③ For those formed other than from business combination: If they are acquired in cash payment, the initial investment cost is thepurchase price actually paid; if they are acquired in the issue of equity securities, the initial investment cost is the fair value of theissued equity securities; if they are acquired in debt restructuring, the initial investment cost shall be recognized according to theAccounting Standards for Enterprises No. 12 - Debt Restructuring; if they are acquired in the exchange of non-monetary assets, theinitial investment shall be recognized according to the Accounting Standards for Enterprises No. 7 - Exchange of Non-MonetaryAssets.
(3) Method of subsequent measurement and recognition of profits and losses
Long-term equity investment with control over investees shall be accounted in cost method; long-term equity investment onassociated enterprises and joint ventures shall be accounted in equity method.
(4) Method of treating the disposal of the investment in a subsidiary stem by step through multiple transactions until the lossof the controlling right
1) Individual financial statements
For the disposed equity, the difference between its fair value and the actually obtained price shall be recorded into current profits orlosses. For the residual equity, the part that still has significant effects on investees or with common control jointly with other partiesshall be accounted in equity method; the part that has no more control, common control or significant effects on investees shall beaccounted in accordance with the relevant regulation of the Accounting Standards for Enterprises No. 22 - Recognition andMeasurement of Financial Instruments.
2) Consolidated financial statements
① For the disposal of the investment in subsidiaries step by step until the loss of the controlling right through multiple transactions,which do not constitute the “package deal”Before the loss of the controlling right, for the balance between the disposal remuneration and the shares of net assets in thesubsidiaries that have been calculated since the acquisition date or combination date corresponding to the disposal of long-termequity investment, capital reserve (capital premium) shall be adjusted, and if the capital premium is not sufficient for the write-down,the retained earnings shall be written down.At the loss of the controlling right over the original subsidiaries, the residual equity shall be re-measured at its fair value on the dateof losing the controlling right. The difference between the consideration obtained in the equity disposal, plus the fair value of theremaining equities, less the Company’s share of net assets enjoyed of the former subsidiary that has been calculated since theacquisition date or combination date according to the former shareholding ratio, shall be recorded into the investment gains for theperiod when the control ceases; meanwhile, goodwill shall be written down. Other comprehensive income related to former
subsidiary's equity investment shall be transferred into current investment income when the control ceases.
② For the disposal of the investment in subsidiaries step by step until the loss of the controlling right through multiple transactions,which constitute the “package deal”The accounting treatment shall be carried out on the basis of considering each transaction as a transaction of disposing the subsidiaryand losing control. However, before losing control, the difference between each disposal price before losing the control, and thecorresponding net assets share enjoyed of subsidiary when disposing long-term equity investment, shall be recognized as othercomprehensive income in the consolidated financial statements and when the control ceases, transferred into current profits or lossesof the period of losing control.
(5) Impairment test method and impairment provision method
When there is objective evidence indicating impairment of the investment in subsidiaries, joint ventures and cooperative enterpriseson the balance sheet date, corresponding provision for impairment shall be made according to the difference between the book valueand recoverable amount.
23. Investment Property
Measurement mode of investment real estatesMeasurement of cost methodDepreciation or amortization method
1. The term "investment real estate" includes the right to use any land which has already been rented, the right to use any land whichis held and prepared for transfer after appreciation, and the right to use any building which has already been rented.
2. The Company initially measures the investment property according to the costs, and adopts the cost method in the subsequentmeasurement of investment property, and adopts the same methods with fixed assets and intangible assets to withdraw depreciationor amortization. When there is any indication of impairment of investment property on the balance sheet date, correspondingprovision for impairment shall be made according to the difference between the book value and recoverable amount.
24. Fixed Assets
(1) Recognized Standard of Fixed Assets
The term "fixed assets" refers to the tangible assets that simultaneously possess the features as follows: they are held for the sakeof producing commodities, rendering labor service, renting or business management; and their useful life is in excess of one fiscalyear. No fixed asset may be recognized unless it simultaneously meets the conditions as follows: (1) The economic benefits arelikely to flow into the enterprise; (2) The cost of the fixed asset can be measured reliably.
(2) Depreciation Method
| Category | Depreciation method | Useful life (year) | Expected net salvage value | Annual deprecation |
| Houses and buildings | Straight-line depreciation | 20-25 | 5-10 | 3.6-4.75 |
| Transportation | Straight-line depreciation | 5 | 5 | 19 |
| Other equipment | Straight-line depreciation | 5 | 5 | 19 |
| Machinery equipment | Straight-line depreciation | 5 | 5 | 19 |
| Decoration of fixed assets | Straight-line depreciation | 5 | 0 | 20 |
(3) Recognition Basis, Pricing and Depreciation Method of Fixed Assets by Finance LeaseNot applicable.
25. Construction in Progress
1. No construction in progress may be recognized unless it simultaneously meets the conditions as follows: (1) The economicbenefits are likely to flow into the enterprise; (2) The cost of the fixed asset can be measured reliably. Construction in progress shallbe measured according to the occurred actual costs before the assets available for the intended use.
2. When the construction in progress is available for the intended use, it shall be transferred to fixed assets according to the actualcost of the project. For construction in progress available for the intended use but not dealing with final accounts of completedproject, it shall be transferred to fixed assets according to the estimated value first, and then adjust original temporarily estimatedvalue based on the actual costs after the final accounts of completed project, but not adjust the depreciation that was alreadycalculated.
26. Borrowing Costs
1. Recognition Principle of Capitalization of Borrowing Costs
Where the borrowing costs incurred to the Company can be directly attributable to the acquisition and construction or production ofassets eligible for capitalization, it shall be capitalized and recorded into the costs of relevant assets. Other borrowing costs shall berecognized as expenses when it occurred, and shall be recorded into the current profits and losses.
2. Capitalization Period of Borrowings Costs
(1) The borrowing costs shall not be capitalized unless they simultaneously meet the following requirements: 1) The assetdisbursements have already incurred; 2) The borrowing costs have already incurred; 3) The acquisition and construction orproduction activities which are necessary to prepare the asset for its intended use or sale have already started.
(2) Where the acquisition and construction or production of a qualified asset is interrupted abnormally and the interruption periodlasts for more than 3 months, the capitalization of the borrowing costs shall be suspended. The borrowing costs incurred during suchperiod shall be recognized as expenses, and shall be recorded into the profits and losses of the current period, till the acquisition andconstruction or production of the asset restarts.
(3) When the acquisition and construction or production of a qualified asset eligible for capitalization are available for its intendeduse or sale, the capitalization of borrowing costs shall be stopped.
3. Capitalized rate and amount of borrowing costs
To the extent that funds are borrowed specifically for the purpose of acquiring or constructing a qualifying asset, the amount ofborrowing costs eligible for capitalization on that asset is determined as the actual interest costs (including amortization of discountand premium confirmed according to effective interest method) incurred on that borrowing during the period less any investmentincome on the temporary investment of the borrowing. To the extent that funds are borrowed generally and used for the purpose ofacquiring or constructing a qualifying asset, the amount of borrowing costs eligible for capitalization shall be determined by applyinga capitalization rate to the weighted average of excess of accumulated expenditures on qualifying asset over that on specific purposeborrowing.
27. Biological Assets
Not applicable.
28. Oil and Gas Assets
Not applicable.
29. Right-of-use Assets
On the start date of the lease term, the Group deems the right-of-use assets and lease obligations, except for the simplified short-termlease and low-value leases.The Group initially measures right-of-use assets at cost. The cost includes:
1. The initial measurement amount of the lease obligation.
2. If a lease incentive exists for lease payments made on or before the commencement date of the lease term, the amount related tothe lease incentive already taken is deducted.
3. Initial direct costs incurred.
4. Costs expected to be incurred by the Group for dismantling and removing the leased asset(s), restoring the premises where theleased asset(s) is/are located, or restoring the leased asset(s) to the status agreed in the leasing clauses. If the aforementioned costs areincurred for inventory production, relevant provisions of Accounting Standard for Business Enterprises No.1 - Inventory is applicable.The Group recognizes and measures the costs described in Item 4 above in accordance with relevant provisions of the AccountingStandards for Business Enterprises No. 13 - Contingencies. The initial direct costs incurred refer to the incremental costs incurred toachieve the lease. Incremental costs are costs that would not have been incurred had the business not acquired the lease.The Group depreciates the right-of-use assets in accordance with relevant depreciation provisions of the Accounting Standards forBusiness Enterprises No. 4 - Fixed Assets. If it is reasonably certain that the ownership of the leasehold property will be obtained atthe end of the lease term, the Group will depreciate the leasehold property over its remaining service life. If it is not reasonablycertain that the ownership of the leasehold property will be obtained at the end of the lease term, the Group will depreciate the leasedasset(s) over the lease term or the remaining service life, whichever is shorter.The Group determines the impairment of the right-of-use assets and conducts accounting treatment of the impairment losses alreadyidentified in accordance with relevant provisions of the Accounting Standards for Business Enterprises No. 8 - Asset Impairment.
30. Intangible Assets
(1) Pricing Method, Useful Life and Impairment Test
1. Intangible assets include right to use land sites, use right of software etc. and conduct the initial measurement according to thecosts.
2. With regard to intangible assets with limited service life, it shall be amortized systematically and reasonably within their servicelife according to the expected implementation of economic interests related to the intangible assets. If it can’t recognize the expectedimplementation reliably, it shall be amortized by straight-line method. The specific useful lives are as follows:
| Items | Useful life for amortization (years) |
| Use right of lands | Statutory life of land use right |
| Use right of software | 5 |
The intangible assets with uncertain service life shall not be amortized, and the Company rechecks the service life of the intangibleassets in every accounting period. For intangible assets with uncertain service, the recognition basis is without certain service life andexpected benefit life.
3. For intangible assets with definite service life, when there is any indication of impairment on the balance sheet date, correspondingprovision for impairment shall be made according to the difference between the book value and recoverable amount; for intangibleassets with uncertain service life and those not ready for service, impairment test shall be conducted every year no matter whetherthere is any indication of impairment.
(2) Accounting Policies of Internal R&D Expenses
Not applicable.
31. Impairment of Long-term Assets
For long-term assets, such as long-term equity investment, investment property measured by cost model, fixed assets, construction inprogress, and intangible assets with limited service life, the Company shall estimate the recoverable amount if there are signs ofimpairment on balance sheet date. For intangible assets with uncertain goodwill or service life formed by enterprise combination,whether or not there is sign of impairment, impairment test shall be conducted every year. Goodwill combination and its relatedassets group or combination of assets group shall be conducted the impairment test.If the recoverable amount of the above-mentioned long-term assets is lower than its carrying value, it shall make the preparation forassets impairment based on its balance and be recorded into current profits and losses.
32. Long-term Prepaid Expenses
Long-term deferred expenses refer to general expenses with the amortized period over one year (one year excluded) that haveoccurred. Long-term prepaid expense shall be recorded into the account according to the actual accrual. Long-term prepaid expenseshall be amortized averagely within benefit period or specified period. In case of no benefit in the future accounting period, theamortized value of such project that fails to be amortized shall be transferred into the profits and losses of the current period.
33. Contract Liabilities
The Company presents contract assets or contract liabilities on the balance sheet according to the relationship between the fulfillmentof its contract performance obligations and its customers’ payment. Obligations to be fulfilled by the Company of transferringcommodities or providing services to customers, as the Company has received or should receive customers’ considerations, arepresented as contract liabilities.
34. Payroll
(1) Accounting Treatment of Short-term Compensation
During the accounting period when the employees providing the service for the Company, the actual short-term compensation shallbe recognized as liabilities, and be recorded into the current profits and losses or related assets costs.
(2) Accounting Treatment of the Welfare after Demission
The Company's welfare after demission plans is divided into defined contribution plans and defined benefit plans (1) During theaccounting period when the employee providing service for the Company, the amount paid in line with the setting drawing plan willbe recognized as liabilities and recorded into current profits or losses or cost of relevant assets.
(2) The accounting treatment of defined benefit plans usually consists of the following steps:
1) According to the expected cumulative welfare unit method, adopt unbiased and mutually consistent actuarial assumptions toevaluate related demographic variables and financial variables, measure the obligations generated from defined benefit plans andrecognize the period in respect of related obligations. Meanwhile, discount the obligations generated from defined benefit plans torecognize their present value and the current service costs;
2) If there are any assets in a defined benefit plan, the deficit or surplus formed from the present value of the defined benefit planobligations less the fair value of the defined benefit plan assets shall be recognized as net liabilities or net assets of a defined benefitplan. If there is any surplus in a defined benefit plan, the net assets of the plan shall be measured at the lower of the surplus or theupper asset limit;
3) At the end of the period, the staff remuneration costs generated from a defined benefit plan shall be recognized as services costs,net interests of the net liabilities or net assets of the plan and changes from the re-measurement of the net liabilities or net assets ofthe plan. Service costs and net interests of the net liabilities or net assets of the plan shall be recorded into the current profits or lossesor related asset costs, while changes from the re-measurement of the net liabilities or net assets of the plan shall be recorded intoother comprehensive income and shall not be transferred back to profits or losses in subsequent accounting periods. But the amounts
recognized in other comprehensive income may be transferred within the equity scope.
(3) Accounting Treatment of Demission Welfare
When the Company is unable to unilaterally withdraw the plan on the cancellation of labor relationship or the layoff proposal, orwhen recognizing the costs or expenses (the earlier one between the two) related to the reorganization of paying the demissionwelfare, should recognize the payroll liabilities from the demission welfare and include in the current gains and losses.
(4) Accounting Treatment of Other Welfare of the Long-term Employees
The Company provides the other long-term employee benefits for the employees, and for those met with the defined contributionplans, accounting treatment should be conducted according to the related regulations of the defined contribution plans; the for theothers long-term employee benefits except for the former, accounting treatment should be conducted according to the relatedregulations of the defined benefit plans. In order to simplify the related accounting treatment, the payrolls shall be recognized asservice costs, the net amount of interest of net liabilities and net assets of other welfare of the long-term employees. The total netamounts made up from the changes of measuring the net liabilities and net assets of other welfare of the long-term employees againshall be recorded into the current profits and losses or related assets costs.
35. Lease Liabilities
On the start date of the lease term, the Group deems the right-of-use assets and lease obligations, except for the simplified short-termlease and low-value leases.The Group initially measures the lease obligation at the present value of the lease payments outstanding at the commencement date ofthe lease term.The term "lease payments" refers to the payments made by the Group to the lessor in terms of the use of the leased asset(s) within thelease term, including:
(1) fixed lease payments and substantial fixed lease payments (if a lease incentive exists, deduct the amount related to the leaseincentive);
(2) the variable lease payments that depend on indexation or ratio, which are determined according to the indexation or ratio on thecommencement date of the lease term in the initial measurement;
(3) the exercise price of the purchase option, when applicable, if the Group is reasonably certain that the option will be exercised;
(4) payments required to be made for exercising the option to terminate the lease if the lease term reflects that the Group will exercisesuch an option;
(5) estimated amount payable based on the residual value of the guarantee provided by the Group.When calculating the present value of lease payments, the Group uses the interest rate implicit in lease as the rate of discount. If theinterest rate implicit in lease cannot be determined, the Group’s incremental lending rate is used as the rate of discount.
36. Provisions
1. The obligation such as external guaranty, litigation or arbitration, product quality assurance, loss contract, pertinent to acontingencies shall be recognized as the provisions when the following conditions are satisfied simultaneously: ① That obligation isa current obligation of the enterprise; ② It is likely to cause any economic benefit to flow out of the enterprise as a result ofperformance of the obligation; and ③ The amount of the obligation can be measured in a reliable way.
2. The Company shall conduct the initial measurement to provisions according to the best estimate number needed for performing therelated current obligation and recheck the carrying value of accrued liabilities on balance sheet date.
37. Share-based Payment
Not applicable.
38. Other Financial Instruments such as Preference Shares and Perpetual Bonds
Not applicable.
39. Revenue
The Accounting Policy Adopted for Recognition and Measurement of Revenue
1. Recognition of revenue
The Company gains revenue mainly from property sales, property management, sales of software and property leasing (refer to 42.Leasing for more detail).The Company recognizes revenue when it has fulfilled the obligation of contract performance, namely, when it has acquired thecontrol of the related commodity. The acquisition of control over a commodity refers to the capacity to control the use of thecommodity and to gain almost all economic interests thereof.
2. The Company judges whether a contract performance obligation is “a contract performance obligation fulfilled in a timeperiod” or “a contract performance obligation fulfilled at a time point” according to the terms in revenue standards, andrecognizes revenue according to the following principles.
(1) When the Company meets one of the following conditions, the obligation should be classified as a contract performanceobligation fulfilled in a specific time period:
1) The customer gains and consumes the economic interests brought by the Company’s contract performance when the Companyperforms the contract.
2) The customer is able to control the assets in progress during the Company’s contract performance.
3) The assets produced during the Company’s contract performance have irreplaceable use, and the Company has the right to collectpayment in respect of its completed contract performance accumulated as of now throughout the entire contract period.For a contract performance obligation fulfilled in a time period, the Company recognizes revenue according to the progress towardscontract completion in that period, but excluding the case when such progress cannot be reasonably determined. The Company usesthe output or input method to determine the right progress towards contract completion by considering the nature of the commodity.
4) For one that is classified as a contract performance obligation fulfilled at a time point instead of in a time period, the Companyrecognizes revenue when the customer acquires the control over the related commodity.In judging whether the customer has acquired the control over a commodity, the Company considers the following signs:
1) The Company is entitled to the current right of payment collection in respect of the commodity. In other words, the customer hasthe current obligation to pay for the commodity.
2) The Company has transferred the legal ownership of the commodity to the customer. In other words, the customer has owned thelegal ownership of the commodity.
3) The Company has transferred the physical commodity to the customer. In other words, the customer has taken physical possessionof the commodity.
4) The Company has transferred the major risks and remunerations in respect of the ownership of the commodity. In other words, thecustomer has acquired the major risks and remunerations in respect of the ownership of the commodity.
5) The customer has accepted the commodity.
6) Other signs indicating that the customer has acquired control over the commodity.
Specific policies of the Company for recognizing revenue:
1) Real Estate Sales Contracts
The realization of sales revenue shall be recognized under the following conditions: the developed products have been completed andaccepted, the sales contract has been signed and the obligations stipulated in the contract have been fulfilled, the main risks andrewards of ownership of the developed products have been transferred to the buyer at the same time, the Company shall no longerretain the continuous management rights normally associated with ownership and effectively control the sold developed products, therevenue amount can be measured reliably, the related economic benefits are likely to flow in, and the related costs that have occurredor will occur can be measured reliably. For the sale of self-occupied housing, the realization of sales income shall be recognizedunder the following conditions: the main risks and rewards of ownership of self-occupied houses are transferred to the buyer, theCompany will no longer retain the continuous management rights normally associated with ownership and effectively control the
sold development products, the amount of income can be measured reliably, relevant economic benefits are likely to flow in, therelevant costs that have occurred or will occur can be measured reliably. Only recognizing the sales income realization under thefollowing conditions: acquired the real estate completed and accepted as qualified (the completion and acceptance reports), signed anirreversible sales contract, obtained the buyer's payment certificate (for those who chose bank mortgage, the first installment and thefull amount of bank mortgage must be required; All housing payment should be paid in case of refusal to adopt automatic paymentfor bank mortgage loan). The earlier one of house delivery time designated in the House Delivery Notice delivered (the delivery willbe deemed completed if the owners fail to conduct pertinent procedures for their personal reasons within a designated period) andtime when the owners complete the procedures of delivery in effect should be determined as the time when the revenue is recognised.
2) Providing Labor Services
If the provision of labor services can be reliably estimated (all the following conditions are met: ① The amount of income can bemeasured reliably; ②The relevant economic benefits are likely to inflow to the Company; ③ The progress of the transaction can bereliably determined; ④ The cost incurred and to be incurred in the transaction can be measured reliably), it shall recognize therevenue from providing services employing the percentage-of-completion method, and confirm the completion of labor serviceaccording to the costs incurred as a percentage of the total estimated costs. If the Company can’t, on the date of the balance sheet,reliably estimate the outcome of a transaction concerning the labor services it provides, it shall be handled under the followingconditions: If the cost of labor services incurred is expected to be compensated, the revenue from the providing of labor services shallbe recognized in accordance with the amount of the cost of labor services incurred, and the cost of labor services shall be carriedforward at the same amount; If the cost of labor services incurred is not expected to compensate, the cost incurred should be includedin the current profits and losses, and no revenue from the providing of labor services may be recognized.Property management revenue shall be recognized when property management services have been provided, economic benefitsrelated to property management services can flow into the enterprise, and costs related to property management can be reliablymeasured.
3) Transferring the Right to Use Assets
The revenue of transferring the right to use assets may not be recognized unless the following conditions are both met: the relevanteconomic benefits are likely to inflow to the Company; and the revenue can be reliably measured. The interest income shall berecognized according to the time and actual interest rate in which other people use the Company’s monetary funds. Royalty revenueshall be recognized according to the chargeable time and method stipulated in related contracts and agreements.According to the lease date and lease amount agreed in the lease contract and agreement, the realization of rental property incomeshall be recognized when relevant economic benefits are likely to flow in.
4) Software sales revenue
① Revenue recognition and measurement methods for sales of custom software and independent software productsCustom software refers to the special software designed and developed after the full on-site investigation of the user's businessaccording to the software development contract signed with the customer based on the actual needs of the user, and the resultingdeveloped software is not universal. Revenue is recognized over time based on the progress of completed performance obligationsover the contract period only if the goods produced by the Company in the course of performance have an irreplaceable use and theCompany is entitled to receive payment for the cumulative portion of performance completed to date throughout the contract period,with the progress of completed performance obligations determined by the proportion of the contract costs actually incurred tocomplete the performance obligations to the total estimated contract costs. Otherwise, the revenue is recognized at a certain point intime.For sales contracts of independent software products signed with the customer, the customer directly purchases the standard versionof the software, i.e., the real estate and facilities management platform, and the corresponding modules are deployed byimplementation personnel according to the customer's requirements. In this case, the performance obligations are to be performed ata certain point in time. The revenue is recognized after the Company delivers the product to the customer and the customer acceptsthe product.
② Revenue recognition and measurement methods for systems integration contracts
System integration includes the sale and installation of purchased merchandise and software products. The revenue is recognizedwhen the Company has transferred the primary risks and rewards of the ownership of the purchased merchandise to the purchaser;the Company neither retained the continued management rights usually associated with the ownership, nor effectively controlled thesold goods; the installation and commissioning of the system have been completed and the system has been put into trial operation,or the initial inspection report of the purchaser is obtained; the economic benefits relevant to the transaction are likely to flow into theCompany, the relevant costs can be reliably measured.
③ Revenue recognition and measurement methods for technical service revenue
Technical service revenue mainly refers to the business of providing consulting, implementation and after-sales services of productsto customers as required by contracts. If a service period is agreed upon in a contract, it is considered as a performance obligation tobe performed within a certain period of time, and revenue is recognized for services settled with the customer in accordance with thecontracted service period during the service provision period.
5) Other Business Income
According to the stipulations of relevant contracts and agreements, when the economic benefits related to the transaction can flowinto the enterprise and the costs related to the income can be reliably measured, the realization of other business income shall beconfirmed.
3. Measurement of Revenue
The Company should measure revenue according to the transaction prices apportioned to each of the individual contract performanceobligations. In determining a transaction price, the Company considers the impact of a number of factors, including variableconsideration, significant financing components in contracts, non-cash consideration, and consideration payable to customers.
(1) Variable consideration
The Company determines the best estimate of variable consideration according to the expected value or the amount most likely tooccur. But a transaction price containing variable consideration should not exceed the amount from the accumulated recognizedrevenue that will probably not have any significant reversal when related uncertainties are eliminated. When assessing whether thesignificant reversal of accumulated recognized revenue is almost impossible or not, a company should concurrently consider thepossibility and weight of the revenue reversal.
(2) Significant financing component
When a contract contains any financing component, the Company should determine the transaction price according to the amountpayable that is assumed to be paid in cash by the customer when it acquires control over the commodity. The difference between thetransaction price and the contract consideration should be amortized in the effective interest method during the contract period.
(3) Non-cash consideration
When a customer pays non-cash consideration, the Company should determine the transaction price according to the fair value of thenon-cash consideration. When such fair value cannot be reasonably estimated, the Company will indirectly determine the transactionprice by reference to the individual price committed by the Company for transferring the commodity to the customer.
(4) Consideration payable to a customer
For consideration payable to a customer, the Company should deduct the transaction price from the consideration payable, anddeduct the revenue for the current period at either the recognition of related revenue or the payment (or committed payment) of theconsideration to the customer, whichever is earlier, but excluding the case in which the consideration payable to the customer is forthe purpose of acquiring from the customer other commodities that can be obviously distinguished.If the Company’s consideration payable to a customer is for the purpose of acquiring from the customer other commodities that canbe obviously distinguished, the Company should confirm the commodity purchased in the same way as in its other purchases. Whenthe Company’s consideration payable to a customer exceeds the fair value of the commodity that can be obviously distinguished, theexceeded amount should be used to deduct the transaction price. If the fair value of the commodity acquired from the customer thatcan be obviously distinguished cannot be reasonably estimated, the Company should deduct the transaction price from the
consideration payable to the customer.
Differences in accounting policies for the recognition of revenue caused by different business models for the same type of businessNot applicable.
40. Government Grants
1. If the government subsidies meet with the following conditions at the same, it should be recognized: (1) The entity willcomply with the condition attaching to them; (2) The grants will be received from government. If a government subsidy is amonetary asset, it shall be measured according to the amount received or receivable. If a government subsidy is a non-monetary asset,it shall be measured at its fair value, and shall be measured at a nominal amount when the fair value cannot be obtained reliably.
2. Judgment basis and accounting methods of government subsidies related to assets
The government subsidies that are acquired for construction or form long-term assets in other ways according to governmentdocuments shall be defined as asset-related government subsidies. For those not specified in government documents, the judgmentshall be made based on the compulsory fundamental conditions for acquiring the subsidies. If the subsidies are acquired withconstruction or the formation of long-term assets in other ways as fundamental conditions, they shall be recognized as asset-relatedgovernment subsidies. For asset-related government subsidies, the carrying value of related assets shall be written down orrecognized as deferred income. If asset-related government subsidies are recognized as deferred income, it shall be recorded intoprofits or losses by period in a reasonable and systemic manner within the life of related assets. Government subsidies measured atthe nominal amount shall be directly recorded into current profits or losses. If related assets are sold, transferred, disposed of ordestroyed before the end of their life, the undistributed balance of related deferred income shall be transferred into the profits orlosses for the period of the asset disposal.
3. Judgment basis and accounting treatment of profits-related government subsidies
Government subsidies other than asset-related government subsidies shall be defined as profits-related government subsidies. Forgovernment subsidies consisting of both asset-related parts and profits-related parts, which are difficult to judge whether they arerelated to assets or profits, the entirety shall be classified as profits-related government subsidies. Profits-related governmentsubsidies that are used to compensate the related future expenses or losses shall be recognized as deferred income and shall beincluded into the current profit/losses during the period when the relevant expenses or losses are recognized; those subsidies used tocompensate the related expenses or losses incurred shall be directly included into the current profits/losses.
4. Government subsidies related to the Company’s routine operating activities shall be included into other income or write downrelated costs according to the economic business nature. Government subsidies not related to the Company’s routine activities shallbe included into non-operating income and expenditure.
41. Deferred Income Tax Assets/Deferred Income Tax Liabilities
1. In accordance with the balance (the item not recognized as assets and liabilities can confirm their tax bases according to the tax law,the balance between the tax bases and its carrying amount) between the carrying amount of assets or liabilities and their tax bases,deferred tax assets and deferred tax liabilities should be recognized at the tax rates that are expected to apply to the period when theasset is realized or the liability is settled.
2. A deferred tax asset shall be recognized within the limit of taxable income that is likely to be obtained to offset the deductibletemporary differences. At the balance sheet date, where there is strong evidence showing that sufficient taxable profit will beavailable against which the deductible temporary difference can be utilized, the deferred tax asset unrecognized in prior period shallbe recognized.
3. The Company assesses the carrying amount of deferred tax asset at the balance sheet date. If it’s probable that sufficient taxableprofit will not be available against which the deductible temporary difference can be utilized, the Company shall write down thecarrying amount of deferred tax asset, or reverse the amount written down later when it’s probable that sufficient taxable profit willbe available.
4. The current income tax and deferred income tax of the Company are recorded into the current gains and losses as income taxexpenses or revenue, except in the following circumstances: (1) Business combination; (2) The transaction or event directly includedin owner’ equity.
42. Lease
(1) Accounting Treatment of Operating Lease
1. Lessee
The Group shall, when as the lessee, on the commencement date of the lease term, recognize the right-of-use assets and leaseobligations for the lease, unless it is a simplified short-term lease or low-value asset lease.After the commencement date of the lease term, the Group uses the cost model for subsequent measurement of right-of-use assets.The Group depreciates the right-of-use assets in accordance with relevant depreciation provisions of the Accounting Standards forBusiness Enterprises No. 4 - Fixed Assets. If the lessee can reasonably ascertain that the ownership of the leasehold property will beobtained at the end of the lease term, it shall depreciate the leasehold property over its remaining service life. If it is not reasonablycertain that the ownership of the leasehold property will be obtained at the end of the lease term, it shall depreciate the leased asset(s)over the lease term or the remaining service life, whichever is shorter. The Group will determine the impairment of the right-of-useassets and conduct accounting treatment of the impairment losses already identified in accordance with relevant provisions of theAccounting Standards for Business Enterprises No. 8 - Asset Impairment.The Group calculates the interest expenses of the lease obligations during each period of the lease term at a fixed periodic interestrate, and includes them in profit or loss for the current period. Where the Accounting Standards for Business Enterprises No. 17 -Borrowing Costs and other standards provide that such interest expenses shall be included in the cost of related assets, suchprovisions shall be observed.The Group does not recognize the right-of-use assets and lease liabilities for short-term leases and low-value asset leases. In eachperiod within the lease term, the relevant lease payments for short-term leases and low-value asset leases are included in cost of therelated assets or profit or loss for the current period on a straight-line basis.
2. Lessor
In the case of the Group is the lessor, it recognizes the receipts of the operating lease incurred during each period of the lease term asrentals by the straight-line method. The Group capitalizes the initial direct costs related to the operating lease upon incurrence thereofand, within the lease term, apportions and includes such costs in the current profit or loss on the basis same as the recognition ofrentals.For the fixed assets in the assets under operating lease, the Group shall adopt the depreciation policy of similar assets to calculate anddistill depreciation. For other assets under operating lease, the Group shall amortize them in a systematic and reasonable manner inaccordance with the accounting standards for enterprises applicable to the assets. The Group will determine the impairment of assetsunder operating lease and conduct accounting treatment in accordance with relevant provisions of the Accounting Standards forBusiness Enterprises No. 8 - Asset Impairment.
(2) Accounting Treatments of Financial Lease
The Group shall, when as the lessor, on the commencement date of the lease term, recognize the finance lease receivables for thefinance lease and derecognize the leased asset(s) of the finance lease. The Group shall also calculate and confirm the interest incomeat a fixed periodic interest rate in each period in the lease term.
43. Other Important Accounting Policies and Accounting Estimations
1. Confirmation standard and accounting handling method for operation termination
Components which meet one of the following conditions, have been disposed or divided as held for sale category and can bedistinguished separately are confirmed as operation termination.
1) The component represents one important independent main business or one single main operation area.
2) The component is one part of a related plan which plans to dispose one independent main business or one single main operationarea.
3) The component is a subsidiary which is obtained for resale specially.
44. Changes in Main Accounting Policies and Estimates
(1) Change of Accounting Policies
□Applicable ? Not applicable
(2) Changes in Accounting Estimates
□Applicable ? Not applicable
(3) Adjustments to Financial Statement Items at the Beginning of the Year of the First Implementation of the NewAccounting Standards Implemented since 2023
□Applicable ? Not applicable
45. Other
In the Note of the financial statements, the data of the period-beginning refers to the financial statement data on 1 January 2023;the data of the period-end refers to the financial statement data on 30 June 2023; the Reporting Period refers to the H1 2023; thesame period of last year refers to the H1 2022. The same to the Company as the parent.VI Taxes
1. Main Taxes and Tax Rates
| Category of taxes | Tax basis | Tax rate |
| VAT | Sales of goods or provision of taxable services | Note 1 |
| Urban maintenance and construction tax | Turnover tax payable | Applied to 7%, 5%, 1% separately according to the regional level |
| Enterprise income tax | Taxable income | 25%, 20%, 15%, 16.5% |
| VAT of land | Added value generated from paid transfer of the use right of state-owned lands and property right of above-ground buildings and other attachments | 30%-60% |
| Real estate tax | Levied according to price: paid according to 1.2% of the residual value of the real estate’s original value after deducted | 1.2%, 12% |
| 30% at once; levied according to lease: paid according to 12% of the rental income | ||
| Education surcharge | Turnover tax payable | 3% |
| Local education surcharge | Turnover tax payable | 2% |
Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate
| Name | Income tax rate |
| Chongqing Shenzhen International Trade Center Property Management Co., Ltd. | 15% |
| Shenzhen International Trade Center Property Management Co., Ltd. Chongqing Branch | 15% |
| Shenzhen Facility Management Community Co., Ltd | 15% |
| Shenzhen Guomao Catering Co., Ltd. | 20% |
| Shenzhen Property Engineering and Construction Supervision Co., Ltd. | 20% |
| Shenzhen Julian Human Resources Development Co., Ltd. | 20% |
| Shenzhen Huazhengpeng Property Management Development Co., Ltd. | 20% |
| Shenzhen Jinhailian Property Management Co.,Ltd. | 20% |
| Shenzhen Zhongtongda House Xiushan Service Co.,Ltd. | 20% |
| Shenzhen Kangping Industry Co.,Ltd. | 20% |
| Shenzhen Teacher Family Training Co., Ltd. | 20% |
| Shenzhen Education Industry Co., Ltd. | 20% |
| Shenzhen Yufa Industry Co., Ltd. | 20% |
| Chongqing Aobo Elevator Co., Ltd. | 20% |
| Shenzhen SZPRD Yanzihu Development Co., Ltd. | 20% |
| Shenzhen SZPRD Fuyuantai Development Co., Ltd. | 20% |
| Shenzhen Social Welfare General Company | 20% |
| Shenzhen Fuyuanmin Property Management Co., Ltd. | 20% |
| Shenzhen Meilong Industrial Development Co., Ltd. | 20% |
| Shenzhen Sports Service Co., Ltd. | 20% |
| Shenzhen Penghongyuan Industrial Development Co., Ltd. | 20% |
| Shenzhen Tianque Elevator Technology Co., Ltd. | 20% |
| Shenzhen Guoguan Electromechanical Device Co., Ltd. | 20% |
| Shenzhen Shenshan Special Cooperation Zone Guomao Property Development Co., Ltd. | 20% |
| Shenzhen Helinhua Construction Management Co., Ltd. | 20% |
| Shenzhen Guomao Tongle Property Management Co., Ltd. | 20% |
| Shenzhen International Trade Industry Space Service Co., Ltd. | 20% |
| Shenzhen Foreign Trade Property Management Co., Ltd. | 20% |
| Shenzhen Fubao Urban Resources Management Co., Ltd. | 20% |
| Shenzhen Shenwu Elevator Co., Ltd. | 20% |
| Shenzhen Shenfang Property Cleaning Co., Ltd. | 20% |
| Shandong International Trade Center Hotel Management Co., Ltd. | 20% |
| Beijing Facility Home Technology Co., Ltd. | 20% |
| Subsidiaries registered in Hong Kong area | 16.50% |
| Subsidiaries registered in Vietnam area | 20% |
| Other taxpaying bodies within the consolidated scope | 25% |
2. Tax Preference
According to the regulations of No. 2, Property Service of No. 37, Commercial Service among the encouraging category of theGuidance Catalogue of Industry Structure Adjustment (Y2011), the western industry met with the conditions should be collectedthe corporate income tax according to 15% of the tax rate. The subsidiaries of the Group Chongqing Shenzhen International TradeCenter Property Management Co., Ltd. and Shenzhen International Trade Center Property Management Co., Ltd. ChongqingBranch applied to above policy.On 19 December 2022, Shenzhen Facility Management Community Technology Co., Ltd. successfully passed the re-evaluationfor its High-tech Enterprise Certificate. The company has been assigned certificate number GR202244204675, and the certificateis valid for three years. As per the tax laws and regulations, the company will be eligible for a preferential enterprise income taxrate of 15% for the year 2023.As per the "Announcement on Income Tax Preferential Policies for Small and Micro Enterprises and Individual Industrial andCommercial Taxpayers" (Announcement No. 6 of 2023 of the Ministry of Finance and the State Taxation Administration) and the"Announcement of the State Taxation Administration on Matters Related to Collection and Administration of Income TaxPreferential Policies for Small Enterprises with Low Profits" (Announcement No. 6 of 2023 of the State Taxation Administration),for small and micro-profit enterprises, if their annual taxable income does not exceed RMB1 million from 1 January 2023 to 31December 2024, the taxable income will be reduced by 12.5%, and the enterprise income tax rate will be 20%. Furthermore, as perthe "Announcement on Further Implementing the Preferential Income Tax Policy for Small and Micro Enterprises"(Announcement No. 13 of 2022 of the Ministry of Finance and the State Taxation Administration), for small and micro-profitenterprises, if their annual taxable income exceeds RMB1 million but does not exceed RMB3 million from 1 January 2022 to 31December 2024, the taxable income will be reduced by 25%, and the enterprise income tax rate will be 20%. This policy applies to30 subsidiaries, including Shenzhen Guomao Catering Co., Ltd. (Guomao Catering) and Shenzhen Property Engineering andConstruction Supervision Co., Ltd.
3. Other
[Note 1]: Taxable items and tax rate of the VAT of the Company and its subsidiaries are as follows:
| Type of the revenue | General rate | Percentage charges of |
| Sales of house property | 9% | 5% |
| Rent of real estate | 9% | 5% |
| Property service | 6% | 3% |
| Catering service | 6% | 3% |
| Others | 13% | -- |
VII. Notes to Main Items of Consolidated Financial Statements
1. Monetary Assets
Unit: RMB
| Item | Ending balance | Beginning balance |
| Cash on hand | 42,693.32 | 43,833.00 |
| Bank deposits | 1,385,485,202.97 | 1,512,202,363.19 |
| Other monetary funds | 6,676,731.47 | 5,282,697.64 |
| Total | 1,392,204,627.76 | 1,517,528,893.83 |
| Of which: total amount deposited overseas | 63,964,312.71 | 66,436,595.66 |
| Total amount of restriction in use by guaranteed, pledged or frozen | 15,539,145.06 | 7,835,036.35 |
Other notes:
Among other monetary assets, the funds with limited use rights mainly include the margin and interest of RMB3,332,452.99; thefunds with limited use rights in bank deposits mainly include the bank frozen funds of RMB6,476,231.24 and the interest on timedeposits of RMB5,270,833.33, plus the balance of the bank margin account of RMB459,627.50. The above amount is not regarded ascash and cash equivalents due to restrictions on use.
2. Trading Financial Assets
Unit: RMB
| Item | Ending balance | Beginning balance |
| Of which: | ||
| Of which: |
Other notes:
3. Derivative Financial Assets
Unit: RMB
| Item | Ending balance | Beginning balance |
Other notes:
4. Notes Receivable
(1) Notes Receivable Listed by Category
Unit: RMB
| Item | Ending balance | Beginning balance |
| Total | 0.00 | 0.00 |
Unit: RMB
| Category | Ending balance | Beginning balance | ||||||||
| Carrying amount | Bad debt provision | Carrying value | Carrying amount | Bad debt provision | Carrying value | |||||
| Amount | Proportion | Amount | Withdrawal proportion | Amount | Proportion | Amount | Withdrawal proportion | |||
| Of which: | ||||||||||
| Of which: | ||||||||||
Please refer to the relevant information of disclosure of bad debt provision of other accounts receivable if adopting the general modeof expected credit loss to withdraw bad debt provision of notes receivable.
□Applicable ?Not applicable
(2) Bad Debt Provision Withdrawal, Reversed or Recovered in the Current PeriodWithdrawal of bad debt provision:
Unit: RMB
| Category | Beginning balance | Changes in the current period | Ending balance | |||
| Withdrawal | Reversed or recovered | Verification | Others | |||
Of which significant amount of recovered or transferred-back bad debt provision for the current period:
□Applicable ?Not applicable
(3) Notes Receivable Pledged by the Company at the Period-end
Unit: RMB
| Item | Ending pledged amount |
(4) Notes Receivable which Had Endorsed by the Company or had Discounted and had not Due on theBalance Sheet Date at the Period-end
Unit: RMB
| Item | Amount of recognition termination at the period-end | Amount of not terminated recognition at the period-end |
(5) Notes Transferred to Accounts Receivable because Drawer of the Notes Failed to Execute the Contractor Agreement
Unit: RMB
| Item | Amount of the notes transferred to accounts receivable at the period-end |
Other notes:
(6) Notes Receivable with Actual Verification for the Current Period
Unit: RMB
| Item | Written-off amount |
Of which, verification of significant notes receivable:
Unit: RMB
| Name of the entity | Nature | Written-off amount | Reason for verification | Verification procedures performed | Whether occurred because of related-party transactions |
Notes of the verification of notes receivable
5. Accounts Receivable
(1) Listed by Category
Unit: RMB
| Category | Ending balance | Beginning balance | ||||||||
| Carrying amount | Bad debt provision | Carrying value | Carrying amount | Bad debt provision | Carrying value | |||||
| Amount | Proportion | Amount | Withdrawal proportion | Amount | Proportion | Amount | Withdrawal proportion | |||
| Accounts receivable withdrawal of bad debt provision separately accrued | 131,145,425.55 | 23.32% | 110,207,671.91 | 84.03% | 20,937,753.64 | 111,808,371.14 | 20.01% | 109,689,294.54 | 98.10% | 2,119,076.60 |
| Of which: | ||||||||||
| Accounts receivable withdrawal of bad debt provision of by group | 431,328,190.78 | 76.68% | 35,340,105.27 | 8.19% | 395,988,085.51 | 447,078,385.18 | 79.99% | 29,263,546.48 | 6.55% | 417,814,838.70 |
| Of which: | ||||||||||
| Total | 562,473,616.33 | 100.00% | 145,547,777.18 | 25.88% | 416,925,839.15 | 558,886,756.32 | 100.00% | 138,952,841.02 | 24.86% | 419,933,915.30 |
Bad debt provision separately accrued: 110,207,671.91
Unit: RMB
| Name | Ending balance | |||
| Carrying amount | Bad debt provision | Withdrawal proportion | Reason for withdraw | |
| Shenzhen Jiyong Properties & Resources Development Company | 93,811,328.05 | 93,811,328.05 | 100.00% | Involved in lawsuit and unrecoverable |
| Shenzhen Tewei Industry Co., Ltd. | 2,836,561.00 | 2,836,561.00 | 100.00% | Expected to be unrecoverable |
| Lunan Industry Corporation | 2,818,284.84 | 2,818,284.84 | 100.00% | Expected to be unrecoverable |
| Shenzhen Hampoo Science & Technology Co., Ltd. | 1,436,020.29 | 1,433,070.29 | 99.79% | Expected to be unrecoverable |
| Those with insignificant single amount for which bad debt provision separately accrued | 30,243,231.37 | 9,308,427.73 | 30.78% | Uncollectible for a long period |
| Total | 131,145,425.55 | 110,207,671.91 | ||
Withdrawal of bad debt provision by group: 35,340,105.27
Unit: RMB
| Name | Ending balance | ||
| Carrying amount | Bad debt provision | Withdrawal proportion | |
| Portfolio of credit risk features | 253,508,004.18 | 25,162,778.29 | 9.93% |
| Portfolio of transactions with other related parties | 177,820,186.60 | 10,177,326.98 | 5.72% |
| Total | 431,328,190.78 | 35,340,105.27 | |
Notes to the determination basis for the group:
Please refer to the relevant information of disclosure of bad debt provision of other accounts receivable if adopting the general modeof expected credit loss to withdraw bad debt provision of accounts receivable.
□Applicable ?Not applicable
Disclosure by aging
Unit: RMB
| Aging | Ending balance |
| Within one year (including 1 year) | 312,921,794.00 |
| One to two years | 88,024,382.29 |
| Two to three years | 15,229,615.66 |
| More than three years | 146,297,824.38 |
| Three to four years | 5,415,310.89 |
| Four to five years | 2,471,780.12 |
| Over 5 years | 138,410,733.37 |
| Total | 562,473,616.33 |
(2) Bad Debt Provision Withdrawal, Reversed or Recovered in the Current Period
Withdrawal of bad debt provision:
Unit: RMB
| Category | Beginning balance | Changes in the current period | Ending balance |
| Withdrawal | Reversed or recovered | Verification | Others | |||
| Bad debt provision accrued by item | 109,689,294.54 | 518,377.37 | 110,207,671.91 | |||
| Withdrawal of bad debt provision by group | 29,263,546.48 | 6,076,558.79 | 35,340,105.27 | |||
| Total | 138,952,841.02 | 6,594,936.16 | 145,547,777.18 |
Of which significant amount of recovered or transferred-back bad debt provision for the current period:
Unit: RMB
| Name of the entity | Amount reversed or recovered | Way of recovery |
(3) Accounts Receivable Written-off in Current Period
Unit: RMB
| Item | Written-off amount |
Of which the verification of significant accounts receivable:
Unit: RMB
| Name of the entity | Nature | Written-off amount | Reason for verification | Verification procedures performed | Whether occurred because of related-party transactions |
Notes to verification of accounts receivable:
(4) Top 5 of the Ending Balance of the Accounts Receivable Collected according to Arrears Party
Unit: RMB
| Name of the entity | Ending balance | Proportion to total ending balance of accounts receivable | Ending balance of bad debt provision |
| Shenzhen Bay Technology Development Co., Ltd. | 107,824,285.09 | 19.17% | 6,743,517.22 |
| Shenzhen Jiyong Properties & Resources Development Company | 93,811,328.05 | 16. 68% | 93,811,328.05 |
| Hebei Shenbao Investment Development Co., Ltd. | 29,580,856.88 | 5.26% | 887,425.71 |
| ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. | 10,072,563.13 | 1.79% | 1,252,620.81 |
| Shenzhen Shenfubao (Group) Co., Ltd. | 4,153,519.42 | 0.74% | 159,605.58 |
| Total | 245,442,552.57 | 43.64% |
(5) Accounts Receivable Derecognized due to the Transfer of Financial Assets
(6) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement ofAccounts Receivable
6. Accounts Receivable Financing
Unit: RMB
| Item | Ending balance | Beginning balance |
The changes of accounts receivable financing in the Current Period and the changes in fair value
□Applicable ?Not applicable
Please refer to the relevant information of disclosure of bad debt provision of other accounts receivable if adopting the general modeof expected credit loss to withdraw bad debt provision of accounts receivable financing.
□Applicable ?Not applicable
Other notes:
7. Prepayment
(1) Prepayment Listed by Aging Analysis
Unit: RMB
| Aging | Ending balance | Beginning balance | ||
| Amount | Proportion | Amount | Proportion | |
| Within 1 year | 7,015,536.66 | 68.73% | 98,477,532.46 | 98.14% |
| One to two years | 1,807,120.94 | 17.70% | 1,652,279.14 | 1.65% |
| Two to three years | 1,173,932.28 | 11.50% | 1,438.19 | 0.00% |
| More than three years | 211,234.43 | 2.07% | 210,556.77 | 0.21% |
| Total | 10,207,824.31 | 100,341,806.56 | ||
Notes of the reasons of the prepayment aging over 1 year with significant amount but failed settled in time:
(2) Top 5 Prepayment in Ending Balance Collected according to the Prepayment Target
| Name of the entity (fill in the full name) | Carrying amount | As % of the total ending balance of the prepayments (%) |
Beijing Jingdong Century Information TechnologyCo., Ltd.
| Beijing Jingdong Century Information Technology Co., Ltd. | 1,260,657.76 | 12.35% |
China State Construction & Engineering 4th Bureau5th Corp Limited
| China State Construction & Engineering 4th Bureau 5th Corp Limited | 614,940.37 | 6.02% |
Huaxia International Communications EngineeringSupervision Co., Ltd.
| Huaxia International Communications Engineering Supervision Co., Ltd. | 510,389.00 | 5.00% |
Jinan Electric Power Company of State GridShandong Electric Power Company
| Jinan Electric Power Company of State Grid Shandong Electric Power Company | 435,734.43 | 4.27% |
Foshan Diousdragon Furniture Co., Ltd.
| Foshan Diousdragon Furniture Co., Ltd. | 289,230.00 | 2.83% |
Total
| Total | 3,110,951.56 | 30.48% |
Other notes:
8. Other Receivables
Unit: RMB
| Item | Ending balance | Beginning balance |
| Interests receivable | 0.00 | 0.00 |
| Dividends receivable | 0.00 | 0.00 |
| Other receivables | 624,876,343.49 | 639,903,523.33 |
| Total | 624,876,343.49 | 639,903,523.33 |
(1) Interest Receivable
1) Category of Interest Receivable
Unit: RMB
| Item | Ending balance | Beginning balance |
| Total | 0.00 | 0.00 |
2) Significant Overdue Interest
Unit: RMB
| Entity | Ending balance | Overdue time | Overdue reason | Whether occurred impairment and its judgment basis |
Other notes:
3) Withdrawal of Bad Debt Provision
□Applicable ?Not applicable
(2) Dividend Receivable
1) Category of Dividend Receivable
Unit: RMB
| Project (or investee) | Ending balance | Beginning balance |
| Total | 0.00 | 0.00 |
2) Significant Dividends Receivable Aging over 1 Year
Unit: RMB
| Project (or investee) | Ending balance | Aging | Reason | Whether occurred impairment and its judgment basis |
3) Withdrawal of Bad Debt Provision
□Applicable ?Not applicable
Other notes:
(3) Other Receivables
1) Category of Other Receivables by Account Nature
Unit: RMB
| Nature | Ending carrying amount | Beginning carrying amount |
| Security deposit | 10,178,809.17 | 14,333,480.59 |
| Margin | 34,107,085.10 | 33,052,554.40 |
| Reserve fund | 669,713.78 | 315,131.82 |
| Payment on behalf | 4,524,986.31 | 7,861,406.33 |
| External intercourse funds | 647,238,111.03 | 645,712,452.33 |
| Others | 22,522,486.45 | 26,868,828.99 |
| Total | 719,241,191.84 | 728,143,854.46 |
2) Withdrawal of Bad Debt Provision
Unit: RMB
| Bad debt provision | First stage | Second stage | Third stage | Total |
| Expected credit loss in the next 12 months | Expected loss in the duration (credit impairment not occurred) | Expected loss in the duration (credit impairment occurred) | ||
| Balance as at 1 January 2023 | 58,445,816.20 | 29,794,514.93 | 88,240,331.13 | |
| Balance as at 1 January 2023 in the current period | ||||
| Amount accrued for the current period | 6,103,555.43 | 20,961.79 | 6,124,517.22 | |
| Balance as at 30 June | 64,549,371.63 | 29,815,476.72 | 94,364,848.35 |
2023
Changes of carrying amount with significant amount changed of loss provision in the current period
□Applicable ? Not applicable
Disclosure by aging
Unit: RMB
| Aging | Ending balance | Carrying amount |
| Within one year (including 1 year) | 37,662,808.00 | 45,898,989.35 |
| One to two years | 49,059,147.91 | 582,305,977.29 |
| Two to three years | 547,938,076.57 | 32,848,373.42 |
| More than three years | 84,581,159.36 | 67,090,514.40 |
| Three to four years | 32,976,097.34 | 1,460,635.19 |
| Four to five years | 1,176,811.01 | 1,563,169.64 |
| Over 5 years | 50,428,251.01 | 64,066,709.57 |
| Total | 719,241,191.84 | 728,143,854.46 |
3) Bad Debt Provision Withdrawn, Reversed or Recovered in the Current Period
Withdrawal of bad debt provision:
Unit: RMB
| Category | Beginning balance | Changes in the current period | Ending balance | |||
| Withdrawal | Reversed or recovered | Verification | Others | |||
| Bad debt provision accrued by item | 29,794,514.93 | 20,961.79 | 29,815,476.72 | |||
| Withdrawal of bad debt provision by group | 58,445,816.20 | 6,103,555.43 | 64,549,371.63 | |||
| Total | 88,240,331.13 | 6,124,517.22 | 94,364,848.35 | |||
Of which the bad debt provision recovered or transferred-back with significant amount during the current period:
Unit: RMB
| Name of the entity | Amount reversed or recovered | Way of recovery |
4) Particulars of the Actual Verification of Other Receivables during the Current Period
Unit: RMB
| Item | Written-off amount |
Of which the verification of significant other receivables:
Unit: RMB
| Name of the entity | Nature | Written-off amount | Reason for verification | Verification procedures performed | Whether occurred because of related-party transactions |
Notes to the verification of other receivables:
5) Top 5 of the Ending Balance of Other Receivables Collected according to the Arrears Party
Unit: RMB
| Name of the entity | Nature | Ending balance | Aging | Proportion to total ending balance of other receivables % | Ending balance of bad debt provision |
| Shenzhen Xinhai Holding Co., Ltd. and the related | Intercourse funds | 576,568,974.73 | Within 1 year, one to five years | 80.16% | 17,297,069.25 |
| party Shenzhen Xinhai Rongyao Real Estate Development Co., Ltd. | |||||
| Shenzhen Bangling Stock Cooperative Company | Security deposit and margin | 30,000,000.00 | Three to four years | 4.17% | 15,000,000.00 |
| Shenzhen Bay Technology Development Co., Ltd. | Performance risk fund, margin | 16,342,327.84 | Within 1 year | 2.27% | 490,269.84 |
| Shenzhen Qianhai Advanced Information Service Co., Ltd. | Intercourse funds | 10,720,575.27 | Within 1 year, one to two years | 1.49% | 321,617.26 |
| Shenzhen Tianjun Industrial Co., Ltd. | Intercourse funds | 10,000,000.00 | Two to three years | 1.39% | 0.00 |
| Total | 643,631,877.84 | 89.48% | 33,108,956.35 |
6) Accounts Receivable Involving Government Subsidies
Unit: RMB
| Name of the entity | Project of government subsidies | Ending balance | Ending aging | Estimated recovering time, amount and basis |
7) Derecognition of Other Receivables due to the Transfer of Financial Assets
8) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement ofOther Receivables
Other notes:
9. Inventories
Whether the Company needs to comply with the disclosure requirements for the real estate industryYes
(1) Category of Inventory
The Company shall comply with the disclosure requirements for the real estate industry in the Self-regulatory Guidelines No. 3 forCompanies Listed on Shenzhen Stock Exchange - Industry Information Disclosure.Classification by nature:
Unit: RMB
| Item | Ending balance | Beginning balance | ||||
| Carrying amount | Depreciation reserves of inventories or impairment provision for contract performance costs | Carrying value | Carrying amount | Depreciation reserves of inventories or impairment provision for contract performance costs | Carrying value | |
| R&D expenses | 10,608,749,592.61 | 6,648,404.13 | 10,602,101,188.48 | 10,778,950,699.23 | 6,648,404.13 | 10,772,302,295.10 |
| Developing properties | 242,794,704.84 | 242,794,704.84 | 199,674,693.59 | 199,674,693.59 | ||
| Contract performance | 1,975,995.10 | 1,975,995.10 | 1,965,933.85 | 1,965,933.85 | ||
| costs | ||||||
| Raw materials | 1,509,262.79 | 818,559.41 | 690,703.38 | 1,891,354.81 | 1,040,612.30 | 850,742.51 |
| Inventory goods | 2,557,484.48 | 2,094,300.39 | 463,184.09 | 2,536,973.19 | 2,094,300.39 | 442,672.80 |
| Low-value consumables | 271,124.75 | 271,124.75 | 97,885.52 | 97,885.52 | ||
| Total | 10,857,858,164.57 | 9,561,263.93 | 10,848,296,900.64 | 10,985,117,540.19 | 9,783,316.82 | 10,975,334,223.37 |
Disclose main items of “R&D expenses” and interest capitalization in the following format:
Unit: RMB
| Project name | Time for commencement | Estimated date of completion | Estimated total investment | Beginning balance | Transferred to developing properties for the current period | Other decreased amount for the current period | Increase (R&D expenses) for the current period | Ending balance | Accumulated amount of interest capitalization | Of which: amount of capitalized interests for the current period | Capital resources |
| Lanhu Era project | 7 January 2021 | 10 September 2026 | 8,400,000,000.00 | 4,686,202,152.53 | 166,311,560.57 | 4,852,513,713.10 | 298,611,761.36 | 60,308,251.38 | Bank loans | ||
| SZPRD-Fuchang Garden Phase II (Fuhui Huayuan) | 27 December 2018 | 15 May 2023 | 911,330,000.00 | 747,287,571.94 | 747,287,571.94 | 0.00 | Others | ||||
| Humen Sea Bay project | 22 March 2022 | 30 April 2024 | 3,217,590,000.00 | 2,361,567,910.93 | 129,568,909.22 | 2,491,136,820.15 | 2,782,538.76 | 2,782,538.76 | Bank loans | ||
| Guangming Yutang Shangfu project | 7 March 2022 | 21 October 2024 | 2,658,680,000.00 | 1,792,278,782.42 | 46,065,390.79 | 1,838,344,173.21 | 583,458.34 | 583,458.34 | Bank loans | ||
| Yupinluanshan (commercial and residential construction project of No. A117-12 land) | 236,433,505.64 | 412,752.52 | 236,846,258.16 | Others | |||||||
| Land of Hongqi Town, Haikou | 6,648,404.13 | 6,648,404.13 | Others | ||||||||
| Shenhui Garden | 37,256,048.16 | 31,716.38 | 37,287,764.54 | Others | |||||||
| Fuyuantai project | 12,754,337.65 | 1,468,717.00 | 14,223,054.65 | Others | |||||||
| Yangzhou Shouxihu Ecological Health Valley project | 6 March 2023 | 31 August 2026 | 3,774,790,000.00 | 863,966,304.45 | 231,250,626.85 | 1,095,216,931.30 | Others | ||||
| Others | 34,555,681.38 | 1,976,791.99 | 36,532,473.37 | Others |
| Total | 18,962,390,000.00 | 10,778,950,699.23 | 747,287,571.94 | 0.00 | 577,086,465.32 | 10,608,749,592.61 | 301,977,758.46 | 63,674,248.48 |
Disclose main items of “Developing properties” in the following format:
Unit: RMB
| Project name | Time of completion | Beginning balance | Increase for the current period | Decrease for the current period | Ending balance | Accumulated amount of interest capitalization | Of which: amount of capitalized interests for the current period |
| SZPRD-Langqiao International | 1 December 2012 | 3,447,316.75 | 3,447,316.75 | 83,077,702.96 | |||
| SZPRD-Hupan Yujing Phase I | 1 June 2015 | 56,815,090.28 | 90,123.14 | 56,724,967.14 | |||
| SZPRD-Banshan Yujing Phase II | 12 January 2022 | 3,607,397.06 | 64,327.91 | 47,625.68 | 3,624,099.29 | 10,446,911.43 | |
| SZPRD-Songhu Langyuan | 1 July 2017 | 24,200,327.47 | 271,385.28 | 23,928,942.19 | 27,205,315.95 | ||
| SZPRD-Hupan Yujing Phase II | 1 November 2017 | 30,517,813.23 | 135,678.16 | 30,382,135.07 | 30,539,392.65 | ||
| SZPRD-Golden Collar’s Resort | 2 December 2019 | 72,260,564.44 | 4,270,881.01 | 8,633,730.49 | 67,897,714.96 | ||
| International Trade Center Plaza | 1 December 1995 | 4,839,083.10 | 4,839,083.10 | 26,385,636.29 | |||
| Huangyuyuan A Area | 1 June 2001 | 790,140.58 | 790,140.58 | ||||
| Podium Building of Fuchang Building | 1 November 1999 | 645,532.65 | 645,532.65 | ||||
| Other items | 2,551,428.03 | 2,551,428.03 | |||||
| SZPRD-Fuchang Garden Phase II (Fuhui Huayuan) | 15 May 2023 | 747,287,571.94 | 699,324,226.86 | 47,963,345.08 | |||
| Total | 199,674,693.59 | 751,622,780.86 | 708,502,769.61 | 242,794,704.84 | 177,654,959.28 |
Classification of “Developing properties with the collection of payments in installments”, “Renting developing properties” and“Temporary Housing”:
Unit: RMB
| Project name | Beginning balance | Increase for the current period | Decrease for the current period | Ending balance |
(2) Falling Price Reserves of Inventory and Impairment Reserves for Contract Performance CostsDisclosure of falling provision withdrawal of inventory in the following format:
Classification by nature:
Unit: RMB
| Item | Beginning balance | Increased amount of the current period | Decreased amount for the current period | Ending balance | Notes | ||
| Withdrawal | Others | Transferred-back or charged-off | Others | ||||
| R&D expenses | 6,648,404.13 | 6,648,404.13 | |||||
| Raw materials | 1,040,612.30 | 222,052.89 | 818,559.41 | ||||
| Inventory goods | 2,094,300.39 | 2,094,300.39 | |||||
| Total | 9,783,316.82 | 222,052.89 | 9,561,263.93 |
Classification by nature:
Unit: RMB
| Project name | Beginning balance | Increased amount of the current period | Decreased amount for the current period | Ending balance | Notes | ||
| Withdrawal | Others | Transferred-back or charged-off | Others | ||||
| Land of Qiongshan, Hainan | 6,648,404.13 | 6,648,404.13 | |||||
| Total | 6,648,404.13 | 6,648,404.13 | |||||
(3) Notes to the Ending Balance of Inventories Including Capitalized Borrowing Expense
| Project name | Period-begin | Current period | Carry-over in current period | Period-end |
SZPRD-GoldenCollar’s Resort
| SZPRD-Golden Collar’s Resort | 341,681.06 | - | 31,076.48 | 310,604.58 |
LanhushidaiProject
| Lanhushidai Project | 238,303,509.98 | 60,308,251.38 | - | 298,611,761.36 |
SZPRD-LangqiaoInternational
| SZPRD-Langqiao International | 2,971,986.54 | - | - | 2,971,986.54 |
SZPRD-HupanYujing Phase I
| SZPRD-Hupan Yujing Phase I | 1,249,515.42 | - | 7,148.32 | 1,242,367.10 |
Humen Sea Bayproject
| Humen Sea Bay project | - | 2,782,538.76 | - | 2,782,538.76 |
GuangmingYutang Shangfuproject
| Guangming Yutang Shangfu project | - | 583,458.34 | - | 583,458.34 |
Total
| Total | 242,866,693.00 | 63,674,248.48 | 38,224.80 | 306,502,716.68 |
(4) Inventory Restrictions
Disclosing restricted inventory by project:
Unit: RMB
| Project name | Beginning balance | Ending balance | Reason for restriction |
10. Contract Assets
Unit: RMB
| Item | Ending balance | Beginning balance | ||||
| Carrying amount | Impairment provision | Carrying value | Carrying amount | Impairment provision | Carrying value | |
| SZPRD-Fuchang Garden Phase II (Fuhui Huayuan) | 109,392,112.37 | 109,392,112.37 | ||||
| Municipal engineering retention money | 991,952.00 | 991,952.00 | 1,094,632.90 | 1,094,632.90 | ||
| Total | 110,384,064.37 | 110,384,064.37 | 1,094,632.90 | 1,094,632.90 |
Amount of significant changes in carrying value of contract assets in the Current Period and reasons thereof:
Unit: RMB
| Item | Change in amount | Reason(s) |
If the impairment provision for contract assets in accordance with the general model of expected credit losses, the information relatedto the impairment provision shall be disclosed by reference to the disclosure method of other receivables:
□Applicable ?Not applicable
Withdrawal of impairment provision for contract assets in the Current Period:
Unit: RMB
| Item | Withdrawal of the current period | Amount transferred-back for the current period | Write-off/verified for the current period | Reason |
Other notes:
11. Held-for-sale Assets
Unit: RMB
| Item | Ending carrying amount | Impairment provision | Ending carrying amount | Fair value | Estimated disposal expense | Estimated disposal time |
Other notes:
12. Current Portion of Non-current Assets
Unit: RMB
| Item | Ending balance | Beginning balance |
Significant investments in debt obligations/other investments in debt obligations
Unit: RMB
| Item | Ending balance | Beginning balance | ||||||
| Par value | Coupon rate | Actual interest rate | Maturity date | Par value | Coupon rate | Actual interest rate | Maturity date | |
Other notes:
13. Other Current Assets
Unit: RMB
| Item | Ending balance | Beginning balance |
| Prepaid VAT | 12,232,463.61 | 16,846,758.27 |
| Deducted input tax | 58,657,816.56 | 28,950,002.85 |
| Prepaid income tax | 33,200.38 | 1,436,395.15 |
| Prepaid land VAT | 0.00 | 16,438,505.72 |
| Prepaid urban construction tax | 37,292.33 | 1,156,118.20 |
| Prepaid education surcharge | 26,637.38 | 825,798.74 |
| Immediate rebate of receivable software sales VAT | 0.00 | 1,687.34 |
| Total | 70,987,410.26 | 65,655,266.27 |
Other notes:
14. Investments in Debt Obligations
Unit: RMB
| Item | Ending balance | Beginning balance | ||||
| Carrying amount | Impairment provision | Carrying value | Carrying amount | Impairment provision | Carrying value | |
Significant investments in debt obligations
Unit: RMB
| Item | Ending balance | Beginning balance | ||||||
| Par value | Coupon rate | Actual interest rate | Maturity date | Par value | Coupon rate | Actual interest rate | Maturity date | |
Status of accrued depreciation reserves
Unit: RMB
| Bad debt provision | First stage | Second stage | Third stage | Total |
| Expected credit loss in the next 12 months | Expected loss in the duration (credit impairment not occurred) | Expected loss in the duration (credit impairment occurred) | ||
| Balance of 1 January 2023 in the current period |
Changes of carrying amount with significant amount changed of loss provision in the current period
□Applicable ?Not applicable
Other notes:
15. Other Investments in Debt Obligations
Unit: RMB
| Item | Beginning balance | Accrued interest | Change in fair value in the reporting period | Ending balance | Cost | Accumulated changes in fair value | Accumulated provision for losses recognized in other comprehensive income | Notes |
Significant other investments in debt obligations
Unit: RMB
| Item | Ending balance | Beginning balance | ||||||
| Par value | Coupon rate | Actual interest rate | Maturity date | Par value | Coupon rate | Actual interest rate | Maturity date | |
Status of accrued depreciation reserves
Unit: RMB
| Bad debt provision | First stage | Second stage | Third stage | Total |
| Expected credit loss in the next 12 months | Expected loss in the duration (credit impairment not occurred) | Expected loss in the duration (credit impairment occurred) | ||
| Balance of 1 January 2023 in the current period |
Changes of carrying amount with significant amount changed of loss provision in the current period
□Applicable ?Not applicable
Other notes:
16. Long-term Receivables
(1) List of Long-term Receivables
Unit: RMB
| Item | Ending balance | Beginning balance | Interval of |
| Carrying amount | Bad debt provision | Carrying value | Carrying amount | Bad debt provision | Carrying value | discount rate | |
| Financing lease accounts | 21,920,095.92 | 21,920,095.92 | 22,651,454.07 | 22,651,454.07 | 0.14 | ||
| Of which: unrealized financing income | 11,607,188.38 | 11,607,188.38 | 13,169,492.65 | 13,169,492.65 | |||
| Total | 21,920,095.92 | 21,920,095.92 | 22,651,454.07 | 22,651,454.07 |
Impairment of bad debt provision
Unit: RMB
| Bad debt provision | First stage | Second stage | Third stage | Total |
| Expected credit loss in the next 12 months | Expected loss in the duration (credit impairment not occurred) | Expected loss in the duration (credit impairment occurred) | ||
| Balance of 1 January 2023 in the current period |
Changes of carrying amount with significant amount changed of loss provision in the current period
□Applicable ?Not applicable
(2) Derecognition of Long-term Receivables due to the Transfer of Financial Assets
(3) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement ofLong-term Receivables
Other notes:
17. Long-term Equity Investment
Unit: RMB
| Investee | Beginning balance (carrying value) | Increase/decrease for the current period | Ending balance (Carrying Value) | Ending balance of depreciation reserve | |||||||
| Additional investment | Reduced investment | Gains and losses recognized under the equity method | Adjustment of other comprehensive income | Changes of other equity | Cash bonus or profits announced to issue | Withdrawal of impairment provision | Others | ||||
| I. Joint ventures | |||||||||||
| Shenzhen Real Estate Jifa Warehousing Co., Ltd. | 44,730,585.29 | 1,722,873.98 | 46,453,459.27 | ||||||||
| Tian’an International Building Property Management Company of Shenzhen | 7,037,952.31 | 82,895.33 | 7,120,847.64 | ||||||||
| Subtotal | 51,768,537.60 | 1,805,769.31 | 53,574,306.91 | ||||||||
| II. Associated enterprises | |||||||||||
| Shenzhen Wufang Ceramics | 18,983,614.14 | 18,983,614.14 | 18,983,614.14 | ||||||||
| Industrial Co., Ltd. | |||||||||||
| Shenzhen Kangfu Health Products Co., Ltd. | 165,000.00 | 165,000.00 | 165,000.00 | ||||||||
| Shenzhen Xinghao Imitation Porcelain Co., Ltd. | 756,670.68 | 756,670.68 | 756,670.68 | ||||||||
| Shenzhen Social Welfare Company Fuda Electronics Factory | 326,693.24 | 326,693.24 | 326,693.24 | ||||||||
| Shenzhen Fulong Industry Development Co., Ltd. | 1,684,350.00 | 1,684,350.00 | 1,684,350.00 | ||||||||
| Haonianhua Hotel | 2,733,570.05 | 2,733,570.05 | 2,733,570.05 | ||||||||
| Shenzhen Education Fund Longhua Investment | 500,000.00 | 500,000.00 | 500,000.00 | ||||||||
| Shenzhen Kangle Sports Club Huangfa Branch | 540,060.00 | 540,060.00 | 540,060.00 | ||||||||
| Dankeng Village Plants of Fumin in Guanlan Town, Shenzhen City | 1,168,973.20 | 1,168,973.20 | 1,168,973.20 | ||||||||
| Shenzhen Bull Entertainment Co., Ltd. | 500,000.00 | 500,000.00 | 500,000.00 | ||||||||
| Shenzhen Lianhua Caitian Property Management Co., Ltd. | 1,475,465.91 | 1,475,465.91 | 1,475,465.91 | ||||||||
| Shenzhen Yangyuan Industrial Co., Ltd. | 1,030,000.00 | 1,030,000.00 | 1,030,000.00 | ||||||||
| Jiakaifeng Co., Ltd. Bao’an Company | 600,000.00 | 600,000.00 | 600,000.00 | ||||||||
| Guiyuan Garage | 350,000.00 | 350,000.00 | 350,000.00 | ||||||||
| Shenzhen Wuweiben Roof Greening Co., Ltd. | 500,000.00 | 500,000.00 | 500,000.00 | ||||||||
| ShenzhenYuanping Plastic Steel Doors | 240,000.00 | 240,000.00 | 240,000.00 |
| Co., Ltd. | |||||||||||
| ShenzhenYoufang Printing Co., Ltd. | 100,000.00 | 100,000.00 | 100,000.00 | ||||||||
| Shenzhen Lusheng Industrial Development Co., Ltd. | 100,000.00 | 100,000.00 | 100,000.00 | ||||||||
| CSCEC Intelligent Parking Technology Co., Ltd. | 28,012,899.71 | 51,619.01 | 63,120.00 | 28,001,398.72 | |||||||
| Subtotal | 59,767,296.93 | 51,619.01 | 63,120.00 | 59,755,795.94 | 31,754,397.22 | ||||||
| Total | 111,535,834.53 | 1,857,388.32 | 63,120.00 | 113,330,102.85 | 31,754,397.22 |
Other notes:
18. Other Equity Instrument Investment
Unit: RMB
| Item | Ending balance | Beginning balance |
| Gintian Industry (Group) Co., Ltd. | 635,355.65 | 887,838.64 |
| Total | 635,355.65 | 887,838.64 |
Non-trading equity instrument investment in the Current Period disclosed by items
Unit: RMB
| Project name | Dividend income recognized | Accumulative gains | Accumulative losses | Amount of other comprehensive income transferred to retained earnings | Reason for assigning to measure in fair value of which changes included other comprehensive income | Reason for other comprehensive income transferred to retained earnings |
| Gintian Industry (Group) Co., Ltd. | 2,955,000.66 | Not for business transaction purposes |
Other notes:
19. Other Non-current Financial Assets
Unit: RMB
| Item | Ending balance | Beginning balance |
Other notes:
20. Investment Property
(1) Investment Property Adopting the Cost Measurement Mode
?Applicable □Not applicable
Unit: RMB
| Item | Houses and buildings | Land use right | Construction in progress | Total |
| I. Original carrying value | ||||
| 1. Beginning balance | 861,702,509.37 | 14,495,902.20 | 37,192,716.83 | 913,391,128.40 |
| 2. Increased amount for the current period | 20,847,883.84 | 0.00 | 0.00 | 20,847,883.84 |
| (1) Outsourcing | ||||
| (2)Transfer from inventory/fixed assets/construction in progress | 20,847,883.84 | 0.00 | 0.00 | 20,847,883.84 |
| (3) Business combination increase | ||||
| 3. Decreased amount for the current period | -393,459.16 | 0.00 | 0.00 | -393,459.16 |
| (1) Disposal | ||||
| (2) Other transfer | ||||
| (3) Exchange adjustment | -393,459.16 | 0.00 | 0.00 | -393,459.16 |
| 4. Ending balance | 882,943,852.37 | 14,495,902.20 | 37,192,716.83 | 934,632,471.40 |
| II. Accumulative depreciation and accumulative amortization | ||||
| 1. Beginning balance | 472,271,039.79 | 13,360,585.89 | 21,996,763.54 | 507,628,389.22 |
| 2. Increased amount for the current period | 17,963,132.97 | 0.00 | 3,002,225.94 | 20,965,358.91 |
| (1) Withdrawal or amortization | 17,963,132.97 | 0.00 | 3,002,225.94 | 20,965,358.91 |
| 3. Decreased amount for the current period | -373,786.21 | 0.00 | 0.00 | -373,786.21 |
| (1) Disposal | ||||
| (2) Other transfer | ||||
| (3) Exchange adjustment | -373,786.21 | 0.00 | 0.00 | -373,786.21 |
| 4. Ending balance | 490,607,958.97 | 13,360,585.89 | 24,998,989.48 | 528,967,534.34 |
| III. Depreciation reserves | ||||
| 1. Beginning balance | ||||
| 2. Increased amount for the current period | ||||
| (1) Withdrawal | ||||
| 3. Decreased amount for the current period | ||||
| (1) Disposal | ||||
| (2) Other transfer | ||||
| 4. Ending balance | ||||
| IV. Carrying value | ||||
| 1. Ending carrying value | 392,335,893.40 | 1,135,316.31 | 12,193,727.35 | 405,664,937.06 |
| 2. Beginning carrying value | 389,431,469.58 | 1,135,316.31 | 15,195,953.29 | 405,762,739.18 |
(2) Investment Property Adopting the Fair Value Measurement Mode
□Applicable ?Not applicable
The Company shall comply with the disclosure requirements for the real estate industry in the Self-regulatory Guidelines No. 3 forCompanies Listed on Shenzhen Stock Exchange - Industry Information Disclosure.Investment properties measured in fair value by project disclosure:
Unit: RMB
| Project name | Location | Time of completion | Floor area (m2) | Lease income during this reporting period | Beginning fair value | Closing fair value | Range of fair value changes | Reason for fair value changes and report index |
Whether the Company has new investment properties in construction period measured in fair value
□Yes ?No
Whether the Company has new investment properties measured in fair value
□Yes ?No
(3) Investment Property Failed to Accomplish Certification of Property
Unit: RMB
| Item | Carrying value | Reason |
| 507 Unit, Block No. 6, Maguling | 23,334.11 | The house is used for property management, once occupied by the third party, a property management company, now has been recovered, but hasn’t handled the warrant yet. |
| Meilin land | Obtained after the success in the last instance in 2017, relevant certifications of property are in the procedure | |
| Total | 23,334.11 |
Other notes:
Note: As at 30 June 2023, the original carrying value of Meilin land was RMB3,885,469.40, the accumulated accrued depreciationwas RMB3,885,469.40, and the carrying value was RMB0.
21. Fixed Assets
Unit: RMB
| Item | Ending balance | Beginning balance |
| Fixed assets | 72,977,952.16 | 82,745,172.12 |
| Total | 72,977,952.16 | 82,745,172.12 |
(1) List of Fixed Assets
Unit: RMB
| Item | Houses and buildings | Machinery equipment | Transportation vehicle | Decoration of the fixed assets | Other machinery | Total |
| I. Original carrying value: | ||||||
| 1. Beginning balance | 129,859,285.29 | 6,457,738.92 | 19,461,561.97 | 37,715,645.88 | 57,075,135.08 | 250,569,367.14 |
| 2. Increased amount for the current period | 100,458.85 | 405,630.12 | 1,921,221.97 | 2,427,310.94 | ||
| (1) Purchase | 100,458.85 | 405,630.12 | 1,921,221.97 | 2,427,310.94 | ||
| (2) Transfer from construction in progress | ||||||
| (3) Business combination increase | ||||||
| 3. Decreased amount for the current period | 5,482,998.10 | 15,950.00 | 304,900.00 | 933,964.58 | 6,737,812.68 | |
| (1) Disposal or scrap | 15,950.00 | 304,900.00 | 933,964.58 | 1,254,814.58 | ||
| (2) Others | 5,482,998.10 | 5,482,998.10 | ||||
| 4. Ending balance | 124,376,287.19 | 6,542,247.77 | 19,562,292.09 | 37,715,645.88 | 58,062,392.47 | 246,258,865.40 |
| II. Accumulative depreciation | ||||||
| 1. Beginning balance | 95,882,680.45 | 2,648,956.94 | 13,790,571.17 | 18,649,255.82 | 36,777,013.48 | 167,748,477.86 |
| 2. Increased amount for the current period | 1,073,376.55 | 368,465.41 | 899,185.22 | 3,739,759.14 | 3,329,303.47 | 9,410,089.79 |
| (1) Withdrawal | 1,073,376.55 | 368,465.41 | 899,185.22 | 3,739,759.14 | 3,329,303.47 | 9,410,089.79 |
| 3. Decreased amount for the current period | 2,751,867.91 | 15,950.00 | 265,516.90 | 844,319.60 | 3,877,654.41 | |
| (1) Disposal or scrap | 15,950.00 | 265,516.90 | 844,319.60 | 1,125,786.50 | ||
| (2) Others | 2,751,867.91 | 2,751,867.91 | ||||
| 4. Ending balance | 94,204,189.09 | 3,001,472.35 | 14,424,239.49 | 22,389,014.96 | 39,261,997.35 | 173,280,913.24 |
| III. Depreciation reserves | ||||||
| 1. Beginning balance | 75,717.16 | 75,717.16 | ||||
| 2. Increased amount for the current period | ||||||
| (1) Withdrawal | ||||||
| 3. Decreased amount for the current period | 75,717.16 | 75,717.16 | ||||
| (1) Disposal or scrap | 75,717.16 | 75,717.16 | ||||
| 4. Ending balance | ||||||
| IV. Carrying value | ||||||
| 1. Ending carrying value | 30,172,098.10 | 3,540,775.42 | 5,138,052.60 | 15,326,630.92 | 18,800,395.12 | 72,977,952.16 |
| 2. Beginning carrying value | 33,900,887.68 | 3,808,781.98 | 5,670,990.80 | 19,066,390.06 | 20,298,121.60 | 82,745,172.12 |
(2) List of Temporarily Idle Fixed Assets
Unit: RMB
| Item | Original carrying value | Accumulated depreciation | Impairment provision | Carrying value | Notes |
(3) Fixed Assets Leased out by Operation Lease
Unit: RMB
| Item | Ending carrying amount |
(4) Fixed Assets Failed to Accomplish Certification of Property
Unit: RMB
| Item | Carrying value | Reason |
| Room 406, 2 units, Hulunbuir Guangxia Digital Building | 2,274,041.26 | Property rights disputes before, now have won a lawsuit with certification of the property being processed. |
| Room 401, 402, Sanxiang Business Building Office Building | 614,187.20 | The office building will be removed due to the project adjustment and a high-rise office building will be established nearby the present address. The existing property shall be replaced after the completion of the new office building. Thus, the certification of the property is failed to transact. |
| Total | 2,888,228.46 |
Other notes:
(5) Proceeds from Disposal of Fixed Assets
Unit: RMB
| Item | Ending balance | Beginning balance |
Other notes:
22. Construction in Progress
Unit: RMB
| Item | Ending balance | Beginning balance |
(1) List of Construction in Progress
Unit: RMB
| Item | Ending balance | Beginning balance | ||||
| Carrying amount | Impairment provision | Carrying value | Carrying amount | Impairment provision | Carrying value | |
(2) Changes in Significant Construction in Progress during the Current Period
Unit: RMB
| Project name | Budget | Beginning balance | Increased amount of the current period | Transferred in fixed assets | Other decreased amount for the current period | Ending balance | Proportion of accumulated investment in constructions to budget | Job schedule | Accumulated amount of interest capitalization | Of which: amount of capitalized interests for the current period | Capitalization rate of interests for the current period | Capital resources |
(3) List of the Withdrawal of the Depreciation Reserves for Construction in Progress
Unit: RMB
| Item | Amount withdrawn | Reason for withdrawal |
Other notes:
(4) Engineering Materials
Unit: RMB
| Item | Ending balance | Beginning balance | ||||
| Carrying amount | Impairment provision | Carrying value | Carrying amount | Impairment provision | Carrying value | |
Other notes:
23. Productive Living Assets
(1) Productive Living Assets Adopting Cost Measurement Mode
□Applicable ?Not applicable
(2) Productive Living Assets Adopting Fair Value Measurement Mode
□Applicable ?Not applicable
24. Oil and Gas Assets
□Applicable ?Not applicable
25. Right-of-use Assets
Unit: RMB
| Item | Houses and buildings | Total |
| I. Original carrying value | ||
| 1. Beginning balance | 96,978,273.81 | 96,978,273.81 |
| 2. Increased amount for the current period | 10,643,690.71 | 10,643,690.71 |
| (1) New Leases | 10,643,690.71 | 10,643,690.71 |
| 3. Decreased amount for the current period | 17,761,164.68 | 17,761,164.68 |
| (1) Expiration of lease contract | 1,297,675.17 | 1,297,675.17 |
| (2) Lease termination | 10,175,574.13 | 10,175,574.13 |
| (3) Others | 6,287,915.38 | 6,287,915.38 |
| 4. Ending balance | 89,860,799.84 | 89,860,799.84 |
| II. Accumulative depreciation | ||
| 1. Beginning balance | 26,809,858.16 | 26,809,858.16 |
| 2. Increased amount for the current period | 10,342,761.89 | 10,342,761.89 |
| (1) Withdrawal | 10,342,761.89 | 10,342,761.89 |
| 3. Decreased amount for the current period | 3,068,278.39 | 3,068,278.39 |
| (1) Disposal | ||
| Lease termination | 3,068,278.39 | 3,068,278.39 |
| 4. Ending balance | 34,084,341.66 | 34,084,341.66 |
| III. Depreciation reserves | ||
| 1. Beginning balance | ||
| 2. Increased amount for the current period | ||
| (1) Withdrawal | ||
| 3. Decreased amount for the current period | ||
| (1) Disposal | ||
| 4. Ending balance | ||
| IV. Carrying value | ||
| 1. Ending carrying value | 55,776,458.18 | 55,776,458.18 |
| 2. Beginning carrying value | 70,168,415.65 | 70,168,415.65 |
Other notes:
26. Intangible Assets
(1) List of Intangible Assets
Unit: RMB
| Item | Land use right | Patent right | Non-patent technologies | Software use rights | Total |
| I. Original carrying value |
| 1. Beginning balance | 3,060,312.13 | 3,060,312.13 | |||
| 2. Increased amount for the current period | |||||
| (1) Purchase | |||||
| (2) Internal R&D | |||||
| (3) Business combination increase | |||||
| 3. Decreased amount for the current period | |||||
| (1) Disposal | |||||
| 4. Ending balance | 3,060,312.13 | 3,060,312.13 | |||
| II. Accumulated amortization | |||||
| 1. Beginning balance | 1,790,929.22 | 1,790,929.22 | |||
| 2. Increased amount for the current period | 323,300.59 | 323,300.59 | |||
| (1) Withdrawal | 323,300.59 | 323,300.59 | |||
| 3. Decreased amount for the current period | |||||
| (1) Disposal | |||||
| 4. Ending balance | 2,114,229.81 | 2,114,229.81 | |||
| III. Depreciation reserves | |||||
| 1. Beginning balance | |||||
| 2. Increased amount for the current period | |||||
| (1) Withdrawal | |||||
| 3. Decreased amount for the current period | |||||
| (1) Disposal | |||||
| 4. Ending balance | |||||
| IV. Carrying value | |||||
| 1. Ending carrying value | 946,082.32 | 946,082.32 | |||
| 2. Beginning carrying value | 1,269,382.91 | 1,269,382.91 |
The proportion of intangible assets formed from the internal R&D of the Company at the Period-end to the ending balance ofintangible assets
(2) Land Use Right Failed to Accomplish Certification of Property
Unit: RMB
| Item | Carrying value | Reason |
Other notes:
27. Development Costs
Unit: RMB
| Item | Beginning | Increased amount of the current period | Decreased amount for the current period | Ending |
| balance | Internal development costs | Others | Recognized as intangible assets | Transferred into the current profit or loss | balance | |||
| Total |
Other notes:
28. Goodwill
(1) Original Carrying Value of Goodwill
Unit: RMB
| Name of the invested units or events generating goodwill | Beginning balance | Increase for the current period | Decrease for the current period | Ending balance | ||
| Formed by business combination | Disposal | |||||
| Shenzhen Facility Management Community Technology Co., Ltd. | 9,446,847.38 | 9,446,847.38 | ||||
| Total | 9,446,847.38 | 9,446,847.38 | ||||
(2) Depreciation Reserves of Goodwill
Unit: RMB
| Name of the invested units or events generating goodwill | Beginning balance | Increase for the current period | Decrease for the current period | Ending balance | ||
| Withdrawal | Disposal | |||||
| Total | ||||||
Information on the Assets Groups or Combination of Assets Groups which Goodwill Belongs to
| Carrying value of goodwill | Assets group or combination of assets groups | |||
| Main composition | Carrying value | Recognition method | Changes in current period | |
| 9,446,847.38 | Shenzhen Facility Management Community Technology Co., Ltd. | 21,490,611.97 | Assets group or combination of assets groups capable of generating cash flows independently in consideration of benefits from synergies of business combination and the management’s administration and monitoring of production and operating activities. | No |
Notes of the testing process of goodwill impairment, parameters (such as growth rate of the forecast period, growth rate of stableperiod, rate of profit, discount rate, forecast period and so on for prediction of future present value of cash flows) and the recognitionmethod of goodwill impairment losses:
Influence of goodwill impairment testingOther notes:
29. Long-term Prepaid Expense
Unit: RMB
| Item | Beginning balance | Increased amount of the current period | Amortization amount of the current period | Other decreased amount | Ending balance |
| Decoration fee | 21,980,602.46 | 1,990,869.21 | 4,357,979.80 | 21,985.79 | 19,591,506.08 |
| Total | 21,980,602.46 | 1,990,869.21 | 4,357,979.80 | 21,985.79 | 19,591,506.08 |
Other notes:
30. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Deferred Income Tax Assets Had Not Been Off-set
Unit: RMB
| Item | Ending balance | Beginning balance | ||
| Deductible temporary differences | Deferred income tax assets | Deductible temporary differences | Deferred income tax assets | |
| Provision for impairment of assets | 91,518,925.24 | 19,529,639.19 | 72,321,489.09 | 15,066,804.41 |
| Internal unrealized profit | 438,745,107.84 | 109,686,276.96 | 439,263,809.16 | 109,815,952.29 |
| Deductible losses | 930,939,553.18 | 232,593,025.59 | 1,159,867,308.26 | 288,683,459.58 |
| Accrued land VAT | 3,865,285,968.24 | 966,321,492.06 | 3,838,271,429.24 | 959,567,857.31 |
| Estimated profit calculated at pre-sale revenue of property enterprises | 94,559,293.40 | 23,639,823.35 | 35,766,814.24 | 8,941,703.56 |
| Other accrued expenses | 6,301,806.64 | 1,422,129.16 | 4,512,525.55 | 974,808.89 |
| Total | 5,427,350,654.54 | 1,353,192,386.31 | 5,550,003,375.54 | 1,383,050,586.04 |
(2) Deferred Income Tax Liabilities Had Not Been Off-set
Unit: RMB
| Item | Ending balance | Beginning balance | ||
| Taxable temporary difference | Deferred income tax liabilities | Taxable temporary difference | Deferred income tax liabilities | |
| The carrying value of fixed assets was larger than the tax basis | 696,675.48 | 174,168.87 | 967,914.16 | 241,978.54 |
| Total | 696,675.48 | 174,168.87 | 967,914.16 | 241,978.54 |
(3) Deferred Income Tax Assets or Liabilities Had Been Off-set Listed in Net Amount
Unit: RMB
| Item | Ending off-set amount of deferred income tax assets and liabilities | Ending balance of deferred income tax assets and liabilities | Beginning off-set amount of deferred income tax assets and liabilities | Beginning balance of deferred income tax assets and liabilities |
| Deferred income tax assets | 1,353,192,386.31 | 1,383,050,586.04 | ||
| Deferred income tax liabilities | 174,168.87 | 241,978.54 |
(4) List of Unrecognized Deferred Income Tax Assets
Unit: RMB
| Item | Ending balance | Beginning balance |
| Deductible temporary differences | 48,268,108.72 | 52,448,071.36 |
| Deductible losses | 515,895,750.67 | 508,734,563.66 |
| Total | 564,163,859.39 | 561,182,635.02 |
(5) Deductible Losses of Unrecognized Deferred Income Tax Assets will Due in the Following Years
Unit: RMB
| Year | Ending amount | Beginning amount | Notes |
| 2023 | 265,603,820.64 | 265,603,820.64 | The deductible losses of 2018 |
| 2024 | 124,895,242.05 | 124,895,242.05 | The deductible losses of 2019 |
| 2025 | 22,711,013.85 | 22,711,013.85 | The deductible losses of 2020 |
| 2026 | 14,238,807.00 | 14,238,807.00 | The deductible losses of 2021 |
| 2027 | 81,285,680.12 | 81,285,680.12 | The deductible losses of 2022 |
| 2028 | 7,161,187.01 | The deductible losses of 2023 | |
| Total | 515,895,750.67 | 508,734,563.66 |
Other notes:
31. Other Non-current Assets
Unit: RMB
| Item | Ending balance | Beginning balance | ||||
| Carrying amount | Impairment provision | Carrying value | Carrying amount | Impairment provision | Carrying value | |
| Prepayment for purchase of fixed assets, investment properties and intangible assets | 1,291,779.31 | 1,291,779.31 | 115,779.31 | 115,779.31 | ||
| Others | 2,635,093.77 | 2,635,093.77 | 2,635,093.77 | 2,635,093.77 | ||
| Total | 3,926,873.08 | 3,926,873.08 | 2,750,873.08 | 2,750,873.08 | ||
Other notes:
32. Short-term Borrowings
(1) Category of Short-term Borrowings
Unit: RMB
| Item | Ending balance | Beginning balance |
Notes of the category for short-term loans:
(2) List of the Short-term Borrowings Overdue but not Returned
The amount of the overdue unpaid short-term borrowings at the period-end was RMBXXX, of which the significant overdue unpaidshort-term borrowings are as follows:
Unit: RMB
| Entity | Ending balance | Interest rate | Overdue time | Overdue charge rate |
Other notes:
33. Trading Financial Liabilities
Unit: RMB
| Item | Ending balance | Beginning balance |
| Of which: | ||
| Of which: |
Other notes:
34. Derivative Financial Liabilities
Unit: RMB
| Item | Ending balance | Beginning balance |
Other notes:
35. Notes Payable
Unit: RMB
| Category | Ending balance | Beginning balance |
The total amount of notes payable due but unpaid was RMBXXX.
36. Accounts Payable
(1) List of Accounts Payable
Unit: RMB
| Item | Ending balance | Beginning balance |
| Engineering construction expense payable | 353,407,806.68 | 484,123,042.01 |
| Estimated payables | 2,712,921.63 | 32,863,907.25 |
| Others | 141,395,031.89 | 91,296,439.26 |
| Total | 497,515,760.20 | 608,283,388.52 |
(2) Significant Accounts Payable Aged over 1 Year
Unit: RMB
| Item | Ending balance | Unpaid/Un-carry-over reason |
| Shenzhen Municipal Bureau of Planning and Land | 25,000,000.00 | Historical problems |
| China Construction Fourth Engineering Division Corp., Ltd. | 12,017,672.83 | Unsettled |
| Shanghai Mingpeng Construction Group Co., Ltd. | 5,976,705.79 | Unsettled |
| Shenzhen Ruihe Construction Decoration Co., Ltd. | 2,753,369.98 | Unsettled |
| Shenzhen HONGTAO Group Co., Ltd. | 2,569,572.34 | Unsettled |
| Total | 48,317,320.94 |
Other notes:
37. Advances from Customers
(1) List of Advances from Customers
Unit: RMB
| Item | Ending balance | Beginning balance |
| Rental | 1,209,185.48 | 2,260,847.31 |
| Total | 1,209,185.48 | 2,260,847.31 |
(2) Significant Advances from Customers Aged over 1 Year
Unit: RMB
| Item | Ending balance | Unpaid/Un-carry-over reason |
Other notes:
38. Contract Liabilities
Unit: RMB
| Item | Ending balance | Beginning balance |
| House payment in advance | 47,733,616.21 | 857,317,217.99 |
| Property fee in advance | 33,209,460.24 | 15,740,950.87 |
| Other payments in advance | 38,816,647.12 | 47,769,871.95 |
| Total | 119,759,723.57 | 920,828,040.81 |
Significant changes in the amount of carrying value and the reason in the Reporting Period
Unit: RMB
| Item | Change in amount | Reason(s) |
| SZPRD-Fuchang Garden Phase II (Fuhui Huayuan) | -840,878,470.63 | The carried down qualified for revenue carried forward was carried forward to income from principal businesses. |
| SZPRD-Golden Collar’s Resort | 28,343,180.03 | Sales payment collection from the project in the current period |
| Total | -812,535,290.60 |
The Company shall comply with the disclosure requirements for the real estate industry in the Self-regulatory Guidelines No. 3 forCompanies Listed on Shenzhen Stock Exchange - Industry Information Disclosure.The proceeds information of top five advance sale amount:
Unit: RMB
| No. | Project name | Beginning balance | Ending balance | Estimated date of completion | Advance sale proportion |
| 1 | SZPRD-Golden Collar’s Resort | 15,574,706.92 | 43,917,886.95 | 25 December 2019 | 96.00% |
| 2 | Guangming Yutang Shangfu project | 0.00 | 2,986,620.19 | 1 December 2024 | 1.70% |
| 3 | SZPRD-Hupan Yujing Phase II | 716,422.02 | 707,247.71 | 30 November 2017 | 96.00% |
| 4 | SZPRD-Banshan Yujing Phase II | 110,921.17 | 74,430.17 | 12 January 2022 | 100.00% |
| 5 | SZPRD-Hupan Yujing Phase I | 36,697.25 | 36,697.25 | 1 June 2015 | 88.24% |
39. Payroll Payable
(1) List of Payroll Payable
Unit: RMB
| Item | Beginning balance | Increase for the current period | Decrease for the current period | Ending balance |
| I. Short-term salary | 234,726,107.97 | 423,623,999.36 | 467,829,214.52 | 190,520,892.81 |
| II. Post-employment benefit-defined contribution plans | 1,650,684.05 | 35,124,716.34 | 34,223,858.31 | 2,551,542.08 |
| III. Termination benefits | 2,749,600.00 | 2,749,600.00 | ||
| Total | 239,126,392.02 | 458,748,715.70 | 504,802,672.83 | 193,072,434.89 |
(2) List of Short-term Salary
Unit: RMB
| Item | Beginning balance | Increase for the current period | Decrease for the current period | Ending balance |
| 1. Salary, bonus, allowance, subsidy | 216,273,079.86 | 371,317,457.31 | 413,685,247.77 | 173,905,289.40 |
| 2. Employee welfare | 1,408,479.54 | 530,327.31 | 809,484.30 | 1,129,322.55 |
| 3. Social insurance | 71,070.35 | 15,509,848.67 | 15,281,606.04 | 299,312.98 |
| Of which: Medical insurance premiums | 60,059.54 | 13,198,732.10 | 12,994,566.26 | 264,225.38 |
| Work-related injury insurance premiums | 1,263.70 | 643,673.04 | 626,227.56 | 18,709.18 |
| Maternity insurance | 2,154.62 | 786,269.22 | 779,285.91 | 9,137.93 |
| Other commercial insurances | 7,592.49 | 881,174.31 | 881,526.31 | 7,240.49 |
| 4. Housing fund | 1,279,643.31 | 13,741,572.37 | 13,742,470.35 | 1,278,745.33 |
| 5. Labor union budget and employee education budget | 11,352,966.60 | 8,376,367.18 | 8,179,570.54 | 11,549,763.24 |
| 8. Non-monetary benefits | 4,340,868.31 | 14,148,426.52 | 16,130,835.52 | 2,358,459.31 |
| Total | 234,726,107.97 | 423,623,999.36 | 467,829,214.52 | 190,520,892.81 |
(3) List of Defined Contribution Plans
Unit: RMB
| Item | Beginning balance | Increase for the current period | Decrease for the current period | Ending balance |
| 1. Basic pension insurance | 145,676.75 | 29,593,189.67 | 29,245,239.63 | 493,626.79 |
| 2. Unemployment insurance premiums | 4,125.03 | 711,810.87 | 700,545.89 | 15,390.01 |
| 3. Supplementary pension payment | 1,500,882.27 | 4,797,985.48 | 4,256,342.47 | 2,042,525.28 |
| Others | 21,730.32 | 21,730.32 | ||
| Total | 1,650,684.05 | 35,124,716.34 | 34,223,858.31 | 2,551,542.08 |
Other notes:
40. Taxes Payable
Unit: RMB
| Item | Ending balance | Beginning balance |
| VAT | 14,088,568.40 | 15,392,042.91 |
| Consumption tax | 0.00 | 0.00 |
| Enterprise income tax | 32,630,161.71 | 57,096,046.69 |
| Personal income tax | 4,576,871.47 | 3,141,049.35 |
| Urban maintenance and construction tax | 1,132,969.70 | 1,464,551.01 |
| Land appreciation tax | 3,865,285,968.16 | 3,838,271,429.24 |
| Land use tax | 941,954.40 | 153,626.98 |
| Property tax | 5,712,733.63 | 600,966.66 |
| Educational surcharge | 464,449.41 | 707,668.15 |
| Local educational fee | 432,570.90 | 383,745.82 |
| Others | 133,425.21 | 67,220.00 |
| Total | 3,925,399,672.99 | 3,917,278,346.81 |
Other notes:
41. Other Payables
Unit: RMB
| Item | Ending balance | Beginning balance |
| Interest payable | 0.00 | 0.00 |
| Dividends payable | 227,351,128.25 | 12,202,676.04 |
| Other payables | 1,476,775,808.27 | 1,502,883,156.41 |
| Total | 1,704,126,936.52 | 1,515,085,832.45 |
(1) Interest Payable
Unit: RMB
| Item | Ending balance | Beginning balance |
| Total | 0.00 | 0.00 |
List of the significant overdue unpaid interest:
Unit: RMB
| Entity | Overdue amount | Overdue reason |
Other notes:
(2) Dividends Payable
Unit: RMB
| Item | Ending balance | Beginning balance |
| Ordinary stock dividends | 227,351,128.25 | 12,202,676.04 |
| Total | 227,351,128.25 | 12,202,676.04 |
Other notes: including significant dividends payable unpaid for over one year, the unpaid reason shall be disclosed:
| Item | Amount unpaid | Reason |
Shenzhen Greening Department
| Shenzhen Greening Department | 10,869,036.68 | Company restructured without clearing payment object |
Labor Union of Shenzhen Greening Department
| Labor Union of Shenzhen Greening Department | 1,300,000.00 | Company restructured without clearing payment object |
Others
| Others | 33,639.36 | Without access to its account and the final payment is unpaid |
Total
| Total | 12,202,676.04 |
(3) Other Payables
1) Other Payables Listed by Nature of Account
Unit: RMB
| Item | Ending balance | Beginning balance |
| Security deposit | 339,025,828.61 | 316,108,932.91 |
| Margin | 19,211,060.35 | 13,585,641.99 |
| Collection on behalf | 4,350,525.30 | 3,596,458.33 |
| Intercourse funds | 814,319,067.66 | 855,267,729.70 |
| Accrued expenses | 237,339,978.52 | 224,646,116.70 |
| Payment on behalf | 14,727,817.67 | 19,052,869.33 |
| Others | 47,801,530.16 | 70,625,407.45 |
| Total | 1,476,775,808.27 | 1,502,883,156.41 |
2) Significant Other Accounts Payable Aging over One Year
Unit: RMB
| Item | Ending balance | Unpaid/Un-carry-over reason |
| Shenzhen Pason Aluminum Technology Co., Ltd. | 196,416,155.45 | Did not submit the payment application for historical reasons |
| Shenzhen Hengyu (Group) Co., Ltd. | 162,000,000.00 | Unsettled |
| Shenzhen Bay Technology Development Co., Ltd. | 154,415,543.77 | Unsettled |
| Shenzhen Real Estate Jifa Warehousing Co., Ltd. | 42,296,665.14 | Intercourse fund without specific payment term |
| Shenzhen Toutiao Technology Co., Ltd. | 12,424,072.07 | Lease term not expired |
| Total | 567,552,436.43 |
Other notes:
42. Held-for-sale Liabilities
Unit: RMB
| Item | Ending balance | Beginning balance |
Other notes:
43. Current Portion of Non-current Liabilities
Unit: RMB
| Item | Ending balance | Beginning balance |
| Current portion of long-term borrowings | 201,663,040.96 | 196,645,408.45 |
| Lease obligation matured within 1 Year | 21,006,002.41 | 22,213,358.37 |
| Total | 222,669,043.37 | 218,858,766.82 |
Other notes:
44. Other Current Liabilities
Unit: RMB
| Item | Ending balance | Beginning balance |
| Tax to be charged off | 3,392,989.52 | 83,991,786.83 |
| Total | 3,392,989.52 | 83,991,786.83 |
Increase/decrease of the short-term bonds payable:
Unit: RMB
| Name | Par value | Issue date | Bond duration | Issue amount | Beginning balance | Issued in the current period | Interest accrued at par value | Amortization of premium and depreciation | Repaid in the current period | Ending balance | |
| Total |
Other notes:
45. Long-term Borrowings
(1) Category of Long-term Borrowings
Unit: RMB
| Item | Ending balance | Beginning balance |
| Pledged loans | 3,187,796,390.00 | 3,156,782,344.00 |
| Mortgage loans | 553,453,878.17 | |
| Credit loan | 431,200,000.00 | 462,000,000.00 |
| Total | 4,172,450,268.17 | 3,618,782,344.00 |
Note to the category of long-term borrowings:
The pledged borrowings at the period-end [1] were used to develop the Lanhushidai project of Shenzhen Rongyao Real EstateDevelopment Co., Ltd., a subsidiary of the Company (hereinafter referred to as “Rongyao Real Estate”) with the duration from 29November 2019 to 20 November 2024. And 69% equity of Rongyao Real Estate held by the Company was pledged and theguarantee mode was the joint liability guaranty.The pledge borrowings at the period-end [2] were used to acquire 100% of five property management enterprises. They are ShenzhenProperty Management Co., Ltd., Shenzhen Foreign Trade Property Management Co., Ltd., Shenzhen Shenfubao PropertyDevelopment Co., Ltd., Shenzhen Shenfubao Hydropower Municipal Service Co., Ltd. and Shenzhen Free Trade Zone SecurityService Co., Ltd. by the Company's subsidiary Shenzhen International Trade Center Property Management Co., Ltd. with theduration from 18 May 2022 to 26 April 2027. And the 100% equity of these five enterprises held by Shenzhen International TradeCenter Property Management Co., Ltd.The pledged loans [3] at the period-end were used to develop the Humen Sea Bay Garden project of Dongguan Wuhe Real Estate Co.,Ltd., a subsidiary of the Company, with the duration from 30 March 2023 to 5 August 2027. All accounts receivable of DongguanWuhe Real Estate Co., Ltd. in next five years was pledged.The mortgage loans [1] at the period-end were used to develop the Humen Sea Bay Garden project of Dongguan Wuhe Real EstateCo., Ltd., a subsidiary of the Company, with the duration from 30 March 2023 to 5 August 2027. The land use right of Humen SeaBay Garden project held by Dongguan Wuhe Real Estate Co., Ltd. was pledged.The mortgage loans [2] at the period-end were used to develop the Guangming Yutang Shangfu project of Shenzhen GuangmingWuhe Real Estate Co., Ltd., a subsidiary of the Company, with the duration from 24 May 2023 to 25 April 2028. The land use rightof Guangming Yutang Shangfu project held by Shenzhen Guangming Wuhe Real Estate Co., Ltd. was pledged.The mortgage loans [3] at the period-end were used to develop the Lanhushidai project of Shenzhen Rongyao Real EstateDevelopment Co., Ltd., a subsidiary of the Company (hereinafter referred to as “Rongyao Real Estate”) with the duration from 30March 2023 to 30 March 2026.The land use right of Lanhushidai project held by Rongyao Real Estate was pledged and the Companyprovided joint and several liability guarantee..
The credit borrowings at the period-end were used for the transaction payment of equity of Shenzhen Toukong Property ManagementCo., Ltd. with the duration from 18 May 2020 to 10 May 2025.Other notes, including interest rate range:
46. Bonds Payable
(1) Bonds Payable
Unit: RMB
| Item | Ending balance | Beginning balance |
(2) Changes of Bonds Payable (Excluding Other Financial Instruments Divided as Financial Liabilities suchas Preferred Shares and Perpetual Bonds)
Unit: RMB
| Name | Par value | Issue date | Bond duration | Issue amount | Beginning balance | Issued in the current period | Interest accrued at par value | Amortization of premium and depreciation | Repaid in the current period | Ending balance | |
| Total | — | ||||||||||
(3) Convertible Conditions and Time for Convertible Corporate Bonds
(4) Notes to Other Financial Instruments Classified as Financial Liabilities
Basic information about other outstanding financial instruments such as preferred shares and perpetual bonds at the period-endChanges of outstanding financial instruments such as preferred shares and perpetual bonds at the period-end
Unit: RMB
| Outstanding financial instruments | Period-beginning | Increase for the current period | Decrease for the current period | Period-end | ||||
| Number | Carrying value | Number | Carrying value | Number | Carrying value | Number | Carrying value | |
Notes to basis for the classification of other financial instruments as financial liabilitiesOther notes:
47. Lease Liabilities
Unit: RMB
| Item | Ending balance | Beginning balance |
| Lease payments | 99,694,102.14 | 119,208,080.55 |
| Less: Unrecognized financing expense | -15,762,599.86 | -19,031,438.63 |
| Less: Lease liabilities due within 1 year (filled in with negative number) | -21,006,002.41 | -22,213,358.37 |
| Total | 62,925,499.87 | 77,963,283.55 |
Other notes:
48. Long-term Payables
Unit: RMB
| Item | Ending balance | Beginning balance |
| Total | 0.00 | 0.00 |
(1) Long-term Payables Listed by Nature
Unit: RMB
| Item | Ending balance | Beginning balance |
| Total | 0.00 | 0.00 |
Other notes:
(2) Specific Payables
Unit: RMB
| Item | Beginning balance | Increase for the | Decrease for the | Ending balance | Reason for |
| current period | current period | formation |
Other notes:
49. Long-term Payroll Payable
(1) List of Long-term Payroll Payable
Unit: RMB
| Item | Ending balance | Beginning balance |
(2) Changes in Defined Benefit Plans
Obligation present value of defined benefit plans:
Unit: RMB
| Item | Amount for the current period | Amount for the previous period |
Plan assets:
Unit: RMB
| Item | Amount for the current period | Amount for the previous period |
Net liabilities (net assets) of defined benefit plans:
Unit: RMB
| Item | Amount for the current period | Amount for the previous period |
Notes of influence of content of defined benefit plans and its relevant risks to the future cash flow, time and uncertainty of theCompany:
Notes to the results of significant actuarial assumptions and sensitivity analysis of defined benefit plans:
Other notes:
50. Provisions
Unit: RMB
| Item | Ending balance | Beginning balance | Reason for formation |
| Pending litigation | 766,612.52 | 766,612.52 | Xuansheng property management fee lawsuit |
| Total | 766,612.52 | 766,612.52 |
Other notes, including notes to related significant assumptions and evaluation of significant provisions:
Refer to Note XIV-2 for details.
51. Deferred Income
Unit: RMB
| Item | Beginning balance | Increase for the current period | Decrease for the current period | Ending balance | Reason for formation |
| Total | 0.00 | 0.00 |
Item involving government grants:
Unit: RMB
| Item | Beginning balance | Amount of newly subsidy for the current period | Amount recorded into non-operating income in the current period | Amount recorded into other income in the current period | Amount offset cost in the current period | Other changes | Ending balance | Related to assets/related income |
Other notes:
52. Other Non-current Liabilities
Unit: RMB
| Item | Ending balance | Beginning balance |
| Utility specific fund | 636,774.81 | 634,414.79 |
| Housing principle fund | 16,201,175.98 | 15,105,690.42 |
| House warming deposit | 6,466,131.01 | 7,058,030.03 |
| Electric Equipment Maintenance fund | 4,019,415.44 | 4,019,415.44 |
| Deputed maintenance fund | 53,418,040.46 | 53,798,172.96 |
| Follow-up investment of employees for Lanhushidai project | 40,000,000.00 | 40,000,000.00 |
| Others | 7,510,304.23 | 7,393,196.15 |
| Total | 128,251,841.93 | 128,008,919.79 |
Other notes:
53. Share Capital
Unit: RMB
| Beginning balance | Increase/decrease (+/-) | Ending balance | |||||
| New shares issued | Bonus shares | Bonus issue from profit | Others | Subtotal | |||
| Total shares | 595,979,092.00 | 595,979,092.00 | |||||
Other notes:
54. Other Equity Instruments
(1) Basic Information about Other Outstanding Financial Instruments such as Preferred Shares and Perpetual Bonds at thePeriod-end
(2) Changes of Outstanding Financial Instruments such as Preferred Shares and Perpetual Bonds at the Period-end
Unit: RMB
| Outstanding financial instruments | Period-beginning | Increase for the current period | Decrease for the current period | Period-end | ||||
| Number | Carrying value | Number | Carrying value | Number | Carrying value | Number | Carrying value | |
Changes of other equity instruments in the Current Period, reasons thereof and basis of related accounting treatment:
Other notes:
55. Capital Reserve
Unit: RMB
| Item | Beginning balance | Increase for the current period | Decrease for the current period | Ending balance |
| Other capital reserves | 80,488,045.38 | 80,488,045.38 | ||
| Total | 80,488,045.38 | 80,488,045.38 |
Other notes, including a description of the increase or decrease for the current period and the reasons for the change:
56. Treasury Shares
Unit: RMB
| Item | Beginning balance | Increase for the current period | Decrease for the current period | Ending balance |
| Total | 0.00 | 0.00 |
Other notes, including a description of the increase or decrease for the current period and the reasons for the change:
57. Other Comprehensive Income
Unit: RMB
| Item | Beginning balance | Amount for the current period | Ending balance | |||||
| Amount before deducting income tax for the current period | Less: recorded in other comprehensive income in prior period and transferred in profit or loss in the current period | Less: recorded in other comprehensive income in prior period and transferred in retained earnings in the current period | Less: Income tax expense | Attributable to the Company as the parent after tax | Attributable minority shareholders after tax | |||
| I. Other comprehensive income that may not be reclassified to profit or loss | -2,742,841.65 | -275,978.56 | -275,978.56 | -3,018,820.21 | ||||
| Changes in fair value of other equity instrument investment\ | -2,742,841.65 | -275,978.56 | -275,978.56 | -3,018,820.21 | ||||
| II. Other comprehensive income that may subsequently be reclassified to profit or loss | -1,111,536.30 | 1,679,998.83 | 1,679,998.83 | 568,462.53 | ||||
| Differences arising from translation of foreign currency-denominated financial statements | -1,111,536.30 | 1,679,998.83 | 1,679,998.83 | 568,462.53 | ||||
| Total of other comprehensive income | -3,854,377.95 | 1,404,020.27 | 1,404,020.27 | -2,450,357.68 | ||||
Other notes, including the adjustment of the effective gain/loss on cash flow hedges to the initial recognized amount:
58. Specific Reserve
Unit: RMB
| Item | Beginning balance | Increase for the current period | Decrease for the current period | Ending balance |
Other notes, including a description of the increase or decrease for the current period and the reasons for the change:
59. Surplus Reserves
Unit: RMB
| Item | Beginning balance | Increase for the current period | Decrease for the current period | Ending balance |
| Statutory surplus reserves | 48,521,202.68 | 48,521,202.68 | ||
| Discretional surplus reserves | 365,403.13 | 365,403.13 | ||
| Total | 48,886,605.81 | 48,886,605.81 |
Notes, including changes and reason of change:
60. Retained Earnings
Unit: RMB
| Item | Current period | Previous period |
| Beginning balance of retained profits before adjustments | 3,691,056,182.73 | 3,800,901,413.35 |
| Beginning balance of retained profits after | 3,691,056,182.73 | 3,800,901,413.35 |
| adjustments | ||
| Add: Net profit attributable to owners of the Company as the parent | 220,903,444.63 | 250,802,157.71 |
| Dividends of common shares payable | 215,148,452.21 | |
| Others | -1,644,822.69 | -208,463,077.04 |
| Ending retained profits | 3,695,166,352.46 | 3,437,974,711.46 |
List of adjustment of beginning retained profits:
1) RMBXXX beginning retained earnings was affected by retrospective adjustment conducted according to the Accounting Standardsfor Business Enterprises and relevant new regulations.
2) RMBXXX beginning retained earnings was affected by changes in accounting policies.
3) RMBXXX beginning retained earnings was affected by correction of significant accounting errors.
4) RMB beginning retained profits was affected by changes in combination scope arising from same control.
5) RMBXXX beginning retained earnings was affected totally by other adjustments.
61. Operating Revenue and Cost of Sales
Unit: RMB
| Item | Amount for the current period | Amount for the previous period | ||
| Revenue | Cost | Revenue | Cost | |
| Principal business | 1,838,535,192.23 | 1,348,203,616.26 | 1,972,677,481.97 | 1,067,980,872.62 |
| Others | 66,929,440.62 | 23,956,267.99 | 15,622,358.27 | 671,710.70 |
| Total | 1,905,464,632.85 | 1,372,159,884.25 | 1,988,299,840.24 | 1,068,652,583.32 |
Relevant information of revenue:
Unit: RMB
| Category of contracts | Segment 1 | Segment 2 | Total | |
| Product categories | 1,905,464,632.85 | 1,905,464,632.85 | ||
| Of which: | ||||
| Real estate | 1,053,881,874.68 | 1,053,881,874.68 | ||
| Property management | 773,181,325.02 | 773,181,325.02 | ||
| Leasing business | 78,401,433.15 | 78,401,433.15 | ||
| Classification by operating region | 1,905,464,632.85 | 1,905,464,632.85 | ||
| Of which: | ||||
| Shenzhen | 1,736,158,823.32 | 1,736,158,823.32 | ||
| Other regions | 169,305,809.53 | 169,305,809.53 | ||
| Market or customer type | ||||
| Of which: | ||||
| Contract type | ||||
| Of which: | ||||
| Classification by time of commodity transfer | ||||
| Of which: | ||||
| Classification by contract term | ||||
| Of which: | ||||
| Classification by sales channel |
| Of which: | ||||
| Total |
Information about performance obligations:
On 30 June, 2023, the transaction price assigned to unfulfilled (or partially fulfilled) performance obligations was estimated to beRMB120 million, which is mainly expected future revenue of transaction prices that have not met the delivery conditions stipulatedin sales contracts of real estate. The Company is expected to achieve the planned sales revenue within one or two years when thehouse property is completed and passes the acceptance, which meets the delivery conditions stipulated in sales contracts, and whenthe customers acquire the control rights of relevant goods or services on a pilot basis.Information in relation to the transaction price apportioned to the residual contract performance obligation:
The amount of revenue corresponding to performance obligations of contracts signed but not performed or not fully performed yetwas RMB119,759,723.56 at the period-end, among which RMB62,270,248.99 was expected to be recognized in 2023,RMB12,104,375.25 was expected to be recognized in 2024, and RMB45,385,099.32 was expected to be recognized in 2025.Other notes:
The Company shall comply with the disclosure requirements for the real estate industry in the Self-regulatory Guidelines No. 3 forCompanies Listed on Shenzhen Stock Exchange - Industry Information Disclosure.The top 5 accounts received with confirmed amount in the Reporting Period:
Unit: RMB
| No. | Project name | Income balance |
| 1 | Fuchang Garden Phase II | 965,944,812.30 |
| 2 | Golden Collar’s Resort | 66,354,012.36 |
| 3 | Songhu Langyuan | 781,769.51 |
| 4 | Hupan Yujing Phase II | 250,872.47 |
| 5 | Banshan Yujing Phase II | 57,027.52 |
62. Taxes and Surtaxes
Unit: RMB
| Item | Amount for the current period | Amount for the previous period |
| Urban maintenance and construction tax | 5,234,580.49 | 6,451,246.20 |
| Educational surcharge | 2,245,496.54 | 2,793,502.94 |
| Property tax | 5,879,679.55 | 2,296,167.11 |
| Land use tax | 1,017,014.81 | |
| Vehicle and vessel usage tax | 18,361.26 | 14,176.80 |
| Stamp duty | 531,098.01 | 1,998,247.74 |
| Land appreciation tax | 28,694,726.98 | 378,694,384.75 |
| Local educational fee | 1,500,541.14 | 1,827,584.76 |
| Other taxes | 69,287.25 | 155,409.51 |
| Total | 45,190,786.03 | 394,230,719.81 |
Other notes:
63. Selling Expense
Unit: RMB
| Item | Amount for the current period | Amount for the previous period |
| Agency fee | 26,078.00 | 989,571.51 |
| Consultancy and sales service charges | 2,385,496.26 | 2,384,890.28 |
| Advertising expenses | 3,855,726.14 | 954,193.61 |
| Employee remuneration | 4,649,571.85 | 3,422,942.15 |
| Others | 2,170,424.80 | 3,607,260.96 |
| Total | 13,087,297.05 | 11,358,858.51 |
Other notes:
64. Administrative Expense
Unit: RMB
| Item | Amount for the current period | Amount for the previous period |
| Employee remuneration | 109,945,612.07 | 107,934,307.26 |
| Administrative office cost | 14,020,387.30 | 13,369,249.80 |
| Assets amortization and depreciation expense | 13,134,121.00 | 12,231,294.86 |
| Litigation costs | 5,611,455.50 | 1,823,824.81 |
| Others | 6,476,608.31 | 8,342,381.32 |
| Total | 149,188,184.18 | 143,701,058.05 |
Other notes:
65. Development Expense
Unit: RMB
| Item | Amount for the current period | Amount for the previous period |
| Employee remuneration | 1,466,686.36 | 2,511,310.90 |
| Office cost | 47,920.50 | 3,395.00 |
| R&D material expense | 1,592.92 | 25,050.00 |
| Others | 194,851.66 | 149,969.50 |
| Total | 1,711,051.44 | 2,689,725.40 |
Other notes:
66. Finance Costs
Unit: RMB
| Item | Amount for the current period | Amount for the previous period |
| Finance costs | 31,827,441.32 | 36,281,087.17 |
| Less: Interest income (filled in with negative number) | -7,930,755.87 | -9,179,453.97 |
| Foreign exchange gains or losses | -523,791.38 | -1,610,359.72 |
| Others | 819,510.87 | 2,601,004.28 |
| Total | 24,192,404.94 | 28,092,277.76 |
Other notes:
67. Other Income
Unit: RMB
| Sources | Amount for the current period | Amount for the previous period |
| Government grants related to income | 950,093.18 | 3,006,828.76 |
| Return of auxiliary expense for individual income tax withheld | 390,379.71 | 240,710.82 |
| Additional deduction of VAT | 2,741,411.22 | 3,186,192.45 |
| Rebate of VAT | 738,782.96 | 372,713.96 |
| Tax and fee relief | 812,133.08 |
| Others | 37,288.76 | |
| Total | 5,670,088.91 | 6,806,445.99 |
68. Investment Income
Unit: RMB
| Item | Amount for the current period | Amount for the previous period |
| Long-term equity investment income accounted by equity method | 1,857,388.32 | 859,534.38 |
| Interest income earned on other investment in debt obligations during the holding period | 87,379.67 | |
| Total | 1,857,388.32 | 946,914.05 |
Other notes:
69. Net Gain on Exposure Hedges
Unit: RMB
| Item | Amount for the current period | Amount for the previous period |
Other notes:
70. Gain on Changes in Fair Value
Unit: RMB
| Sources | Amount for the current period | Amount for the previous period |
Other notes:
71. Credit Impairment Loss
Unit: RMB
| Item | Amount for the current period | Amount for the previous period |
| Bad debt loss | -13,610,779.58 | -14,462,076.54 |
| Total | -13,610,779.58 | -14,462,076.54 |
Other notes:
72. Asset Impairment Loss
Unit: RMB
| Item | Amount for the current period | Amount for the previous period |
| II. Inventory falling price loss and impairment provision for contract performance costs | 2,045.93 | 3,302.47 |
| Total | 2,045.93 | 3,302.47 |
Other notes:
73. Asset Disposal Income
Unit: RMB
| Sources | Amount for the current period | Amount for the previous period |
| Gains on disposal of fixed assets | 115,810.85 | -41,452.49 |
| Gains on disposal of other assets | 58,568.84 |
74. Non-operating Income
Unit: RMB
| Item | Amount for the current period | Amount for the previous period | Amount recorded in the current non-recurring profit or loss |
| Government grants | 17,500.00 | ||
| Gains on damage and scrap of non-current assets | 5,568.23 | 5,568.23 | |
| Confiscated income | 652,311.27 | 916,961.90 | 652,311.27 |
| Payments unable to clear | 56,282.77 | 874,963.88 | 56,282.77 |
| Others | -919,060.30 | 736,642.68 | -919,060.30 |
| Total | -204,898.03 | 2,546,068.46 | -204,898.08 |
Government grants recorded into current profit or loss
Unit: RMB
| Item | Distribution entity | Distribution reason | Nature | Whether influence the profits or losses of the year or not | Special subsidy or not | Amount for the current period | Previous period | Related to assets/related income |
| Others | Subsidies | Subsidies obtained from the state by undertaking the sustainability of public utilities, the supply of socially necessary products, or the function of price control | No | No | 17,500.00 | Related to revenue |
Other notes:
75. Non-operating Expense
Unit: RMB
| Item | Amount for the current period | Amount for the previous period | Amount recorded in the current non-recurring profit or loss |
| Donation | 19,300.00 | ||
| Losses from damage and scrap of non-current assets | 17,136.15 | 101,068.85 | 17,136.15 |
| Penalty and fine for delaying payment | 78,886.53 | 1,050,960.64 | 78,886.53 |
| Others | 261,695.71 | 246,257.35 | 261,695.71 |
| Total | 357,718.39 | 1,417,586.84 | 357,718.39 |
Other notes:
76. Income Tax Expense
(1) List of Income Tax Expense
Unit: RMB
| Item | Amount for the current period | Amount for the previous period |
| Current income tax expense | 48,971,626.96 | 173,064,812.19 |
| Deferred income tax expense | 29,847,648.80 | -80,409,607.93 |
| Total | 78,819,275.76 | 92,655,204.26 |
(2) Adjustment Process of Accounting Profit and Income Tax Expense
Unit: RMB
| Item | Amount for the current period |
| Total profit | 293,465,531.81 |
| Current income tax expense accounted at statutory/applicable tax rate | 73,366,382.95 |
| Influence of applying different tax rates by subsidiaries | -2,534,219.08 |
| Influence of income tax before adjustment | 5,804,661.91 |
| Influence of non-deductible costs, expenses and losses | 392,153.23 |
| Effect of deductible temporary differences or deductible losses on deferred income tax assets not recognized in the current period | 1,790,296.75 |
| Income tax expense | 78,819,275.76 |
Other notes:
77. Other Comprehensive Income
Refer to Note for details.
78. Cash Flow Statement
(1) Cash Generated from Other Operating Activities
Unit: RMB
| Item | Amount for the current period | Amount for the previous period |
| Large intercourse funds received | 49,072,300.25 | 376,141,428.59 |
| Interest income | 7,930,755.87 | 8,168,660.77 |
| Net margins, security deposit and various special funds received | 45,287,205.39 | 47,722,607.40 |
| Other small receivables | 24,479,612.17 | 29,754,454.20 |
| Total | 126,769,873.68 | 461,787,150.96 |
Notes:
(2) Cash Used in Other Operating Activities
Unit: RMB
| Item | Amount for the current period | Amount for the previous period |
| Paying administrative expense in cash | 30,693,136.34 | 24,801,083.99 |
| Paying selling expense in cash | 8,054,091.33 | 9,594,684.62 |
| Payment of utility expense and various collecting payments on behalf of others | 49,083,846.80 | 70,071,543.78 |
| Other small payments | 34,041,223.54 | 1,997,036.36 |
| Amount of newly limited funds | 5,455,416.01 | |
| Total | 127,327,714.02 | 106,464,348.75 |
Notes:
(3) Cash Generated from Other Investing Activities
Unit: RMB
| Item | Amount for the current period | Amount for the previous period |
Notes:
(4) Cash Used in Other Investing Activities
Unit: RMB
| Item | Amount for the current period | Amount for the previous period |
Notes:
(5) Cash Generated from Other Financing Activities
Unit: RMB
| Item | Amount for the current period | Amount for the previous period |
Notes:
(6) Cash Used in Other Financing Activities
Unit: RMB
| Item | Amount for the current period | Amount for the previous period |
| Payment for lease liabilities | 15,224,062.82 | 12,142,998.09 |
| Total | 15,224,062.82 | 12,142,998.09 |
Notes:
79. Supplemental Information for Cash Flow Statement
(1) Supplemental Information for Cash Flow Statement
Unit: RMB
| Supplemental information | Amount during the current period | Previous period |
| 1. Reconciliation of net profit to net cash flows generated from operating activities: | ||
| Net profit | 214,646,256.05 | 241,301,028.23 |
| Add: Provision for impairment of assets | 13,608,733.65 | 14,458,774.07 |
| Depreciation of fixed assets, oil-gas assets, and productive biological assets | 30,375,573.61 | 46,813,436.13 |
| Depreciation of right-of-use assets | 10,342,761.89 | 11,367,505.45 |
| Amortization of intangible assets | 323,300.59 | 390,983.97 |
| Amortization of long-term prepaid expenses | 4,357,979.80 | 3,085,317.14 |
| Losses from disposal of fixed assets, intangible assets and other long-lived assets (gains represented by “-") | -174,379.69 | 41,452.49 |
| Losses from scrap of fixed assets (gains represented by “-") | 17,136.15 | 101,068.85 |
| Losses from changes in fair value (gains represented by “-") | ||
| Finance costs (gains represented by “-") | 24,192,404.94 | 28,092,277.76 |
| Investment loss (gains represented by “-") | -5,385,588.91 | -6,806,445.99 |
| Decrease in deferred income tax assets (gains represented by “-") | 29,858,199.73 | -80,319,053.48 |
| Increase in deferred income tax liabilities (decrease represented by “-") | -67,809.67 | -68,469.92 |
| Decrease in inventory (gains represented by “-") | 127,259,375.62 | -761,934,290.05 |
| Decrease in accounts receivable generated from operating activities (gains represented by “-") | -13,839,646.61 | -44,432,489.46 |
| Increase in accounts payable used in operating activities (decrease represented by “-") | -1,015,535,955.30 | 151,914,673.72 |
| Others | ||
| Net cash flows from operating activities | -580,021,658.15 | -395,994,231.09 |
| 2. Significant investing and financing activities without involvement of cash receipts and payments | ||
| Conversion of debt to capital | ||
| Convertible corporate bonds matured within one year | ||
| Fixed asset under finance lease | ||
| 3. Net increase/decrease of cash and cash equivalent: | ||
| Closing balance of cash | 1,376,665,482.70 | 1,473,196,246.07 |
| Less: Opening balance of cash | 1,509,693,857.48 | 1,963,988,756.69 |
| Add: Closing balance of cash equivalents |
| Less: Opening balance of cash equivalents | ||
| Net increase in cash and cash equivalents | -133,028,374.78 | -490,792,510.62 |
(2) Net Cash Paid for Acquisition of Subsidiaries
Unit: RMB
| Amount | |
| Of which: | |
| Of which: | |
| Add: Cash or cash equivalents paid in the current period for business combinations incurred in prior periods | 1,644,822.69 |
| Of which: | |
| Shenzhen Property Management Co., Ltd. | 1,644,822.69 |
| Net cash paid for acquisition of subsidiaries | 1,644,822.69 |
Other notes:
(3) Net Cash Received from Disposal of the Subsidiaries
Unit: RMB
| Amount | |
| Of which: | |
| Of which: | |
| Of which: |
Other notes:
(4) Cash and Cash Equivalents
Unit: RMB
| Item | Ending balance | Beginning balance |
| I. Cash | 1,376,665,482.70 | 1,509,693,857.48 |
| Of which: Cash on hand | 42,693.32 | 43,833.00 |
| Bank deposits on demand | 1,373,278,510.90 | 1,506,148,081.54 |
| Other monetary assets on demand | 3,344,278.48 | 3,501,942.94 |
| III. Ending balance of cash and cash equivalents | 1,376,665,482.70 | 1,509,693,857.48 |
Other notes:
80. Notes to Items of the Statements of Changes in Owners' Equity
Notes to the name of "Other" of closing balance of the same period of last year adjusted and the amount adjusted:
Not applicable.
81. Assets with Restricted Ownership or Right of Use
Unit: RMB
| Item | Ending carrying amount | Reason for restriction |
| Monetary capital | 15,539,145.06 | Note 1 - Note 9 |
| Land use right of Fumin New Village, Futian District | 542,507,314.43 | Note 10 |
| Total | 558,046,459.49 |
Other notes:
[Note 1]: In terms of monetary assets with restricted right to use at the period-end, there was RMB2,200,000.00 as the banker's letterof margin for Shenzhen Shenfubao Property Development Co., Ltd., a subsidiary of the Company.
[Note 2]: In terms of monetary assets with restricted right to use at the period-end, there was an advance payment guarantee ofRMB459,627.50 issued by the subsidiary company Shenzhen Facility Management Community Technology Co., Ltd. in December2021 for the upgrading and reconstruction of the smart park of Shenzhen Bay Eco-Technology Park and the software platformdevelopment contract.[Note 3]: In terms of monetary assets with restricted right to use at the period-end, there was RMB3,000,000.00 in the subsidiarycompany Shenzhen Facility Management Community Technology Co., Ltd. blocked by the court due to pre-litigation preservationfor contract disputes.[Note 4]: In terms of monetary assets with restricted right to use at the period-end, there was a loan deposit of RMB1,132,452.99provided as mortgage loan guarantees for commercial housing purchasers and paid by the Company as a real estate developeraccording to real estate business practices.[Note 5]: In terms of monetary assets with restricted right to use at the period-end, there was RMB5,270,833.33 of interest onunexpired term deposits accrued at the period-end.[Note 6]: In terms of monetary assets with restricted right to use at the period-end, there was RMB90,000.00 of blocked fund in adispute over a house purchase and sales contract for Shenzhen Property Group Xuzhou Dapeng Real Estate Development Co., Ltd., asubsidiary of the Company.[Note 7]: In terms of monetary assets with restricted right to use at the period-end, there was RMB129,315.23 in the account of thesubsidiary company Shenzhen Property Engineering and Construction Supervision Co., Ltd. The account was in a receiving-onlystatus because the legal person change formalities had not been completed by the period-end.[Note 8]: In terms of monetary assets with restricted right to use at the period-end, there was an deposit for POS of RMB1,500.00 inthe Shandong Shenguomao Real Estate Management Co., Ltd.[Note 9]: In terms of monetary assets with restricted right to use at the period-end, there was RMB3,255,416.01 of regulated pre-saleproceeds for the real estate projects of Shenzhen Guangming Wuhe Real Estate Co., Ltd., a subsidiary of the Company.[Note 10]: Due to the needs of daily business activities, the Company applied for a loan from Bank of Communications Co., Ltd.Shenzhen Branch and mortgaged the land use right of Fumin New Village, Futian District. The loan has a duration from 27November 2020 to 27 November 2023 and applies floating interest rates.
82. Foreign Currency Monetary Items
(1) Foreign Currency Monetary Items
Unit: RMB
| Item | Closing foreign currency balance | Exchange rate | Ending balance converted to RMB |
| Monetary capital | 65,099,169.94 | ||
| Of which: USD | 120,000.00 | 7.2208 | 866,496.00 |
| EUR | |||
| HKD | 62,829,561.91 | 0.9218 | 57,916,290.17 |
| VND | 20,574,539,964.00 | 0.000307 | 6,316,383.77 |
| Accounts prepaid | 9,221.19 | 8,500.09 | |
| Of which: HKD | 9,221.19 | 0.9218 | 8,500.09 |
| Other payables | 3,506,725.97 | 3,232,500.00 | |
| Of which: HKD | 3,506,725.97 | 0.9218 | 3,232,500.00 |
| Accounts receivable | |||
| Of which: USD | |||
| EUR | |||
| HKD | |||
| Long-term borrowings | |||
| Of which: USD | |||
| EUR | |||
| HKD | |||
Other notes:
(2) Notes to Overseas Entities Including: for Significant Oversea Entities, Main Operating Place, RecordingCurrency and Selection Basis Shall Be Disclosed; if there Are Changes in Recording Currency, RelevantReasons Shall Be Disclosed.?Applicable □Not applicable
| Item | Main operating place | Standard currency for accounting | Basis for choosing |
Shum Yip Properties Development Co.,Ltd. and its subsidiary
| Shum Yip Properties Development Co., Ltd. and its subsidiary | Hong Kong | HKD | Located in HK, settled by HKD |
Vietnam Shenguomao PropertyManagement Co., Ltd.
| Vietnam Shenguomao Property Management Co., Ltd. | Vietnam | VND | Located in Vietnam, settled by VND |
83. Arbitrage
Qualitative and quantitative information of relevant arbitrage instruments, hedged risk in line with the type of arbitrage to disclose:
84. Government Grants
(1) Basic Information on Government Grants
Unit: RMB
| Category | Amount | Listed items | Amount recorded in the current profit or loss |
| Financial assistance for high-tech enterprise training | 120,000.00 | Other income | 120,000.00 |
| Waste classification subsidy | 156,000.00 | Other income | 156,000.00 |
| Employment subsidy | 99,950.19 | Other income | 99,950.19 |
| The subsidy for stabilizing employment | 34,254.40 | Other income | 34,254.40 |
| Other subsidies | 89,888.59 | Other income | 89,888.59 |
| Bonus for "Beautiful Home" | 450,000.00 | Other income | 450,000.00 |
| Total | 950,093.18 | 950,093.18 |
(2) Return of Government Grants
□Applicable ?Not applicable
Other notes:
85. Other
VIII. Change of Consolidation Scope
1. Business Combination Not under the Same Control
(1) Business Combination Not under the Same Control during the Current Period
Unit: RMB
| Name of acquiree | Time and place of gaining equity | Cost of gaining the equity | Proportion of equity | Way to gain equity | Purchase date | Recognition basis of purchase date | Income of acquiree from the purchase date to period-end | Net profits of acquiree from the purchase date to period-end |
Other notes:
(2) Combination Cost and Goodwill
Unit: RMB
| Combination cost | |
| -Cash | |
| -Fair value of non-cash assets | |
| -Fair value of debt issued or assumed | |
| -Fair value of equity securities issued | |
| -Fair value of contingent consideration | |
| -Fair value of equity interests held before the purchase date | |
| -Other |
| Total combination costs | |
| Less: share in the fair value of identifiable net assets acquired | |
| The amount of goodwill/combination cost less than the share in the fair value of identifiable net assets acquired |
Note to determination method of the fair value of the combination cost, consideration and changes:
The main formation reason for the large goodwill:
Other notes:
(3) The Identifiable Assets and Liabilities of Acquiree on Purchase Date
Unit: RMB
| Fair value on purchase date | Carrying value on purchase date | |
| Assets: | ||
| Monetary capital | ||
| Accounts receivable | ||
| Inventories | ||
| Fixed assets | ||
| Intangible assets | ||
| Liabilities: | ||
| Borrowings | ||
| Accounts payable | ||
| Deferred income tax liabilities | ||
| Net assets | ||
| Less: non-controlling interests | ||
| Net assets acquired | ||
The determination method of the fair value of identifiable assets and liabilities:
Contingent liability of acquiree undertaken in the business combination:
Other notes:
(4) Gains or Losses from Re-measurement of Equity Held before the Purchase Date at Fair ValueWhether there is a transaction that through multiple transaction step by step to realize business combination and gaining the controlduring the Reporting Period
□Yes ?No
(5) Notes to Reasonable Consideration or Fair Value of Identifiable Assets and Liabilities of the Acquiree that Cannot BeDetermined on the Acquisition Date or during the Period-end of the Merger
(6) Other Notes
2. Business Combination under the Same Control
(1) Business Combination under the Same Control during the Current Period
Unit: RMB
| Combined party | Proportion of the equity | Basis | Combination date | Recognition basis of combination date | Income from the period-begin to the combination date of the acquiree | Net profits from the period-begin to the combination date of the acquiree | Income of the acquiree during the period of comparison | Net profits of the acquiree during the period of comparison |
Other notes:
(2) Combination Cost
Unit: RMB
| Combination cost | |||||
| --Cash | |||||
| --Carrying value of non-cash assets | |||||
| --Carrying value of debt issued or assumed | |||||
| --Denomination value of equity securities issued | |||||
| --Contingent consideration |
Contingent liabilities and changes thereof:
Other notes:
(3) The Carrying Value of Assets and Liabilities of the Combined Party on the Combination Date
Unit: RMB
| Combination date | End of the previous period | |
| Assets: | ||
| Monetary capital | ||
| Accounts receivable | ||
| Inventories | ||
| Fixed assets | ||
| Intangible assets | ||
| Liabilities: | ||
| Borrowings | ||
| Accounts payable | ||
| Net assets | ||
| Less: non-controlling interests | ||
| Net assets acquired | ||
Contingent liabilities of the combined party undertaken in the business combination:
Other notes:
3. Counter Purchase
Basic information of trading, the basis of transactions constitute counter purchase, the retain assets , liabilities of the listed companieswhether constituted a business and its basis, the determination of the combination costs, the amount and calculation of adjusted rightsand interests in accordance with the equity transaction process:
4. Disposal of Subsidiary
Whether there was a single disposal of an investment in a subsidiary that resulted in a loss of control
□Yes ?No
Whether there was a step-by-step disposal of investment in a subsidiary through multiple transactions and loss of control during thecurrent period
□Yes ?No
5. Changes in Combination Scope for Other Reasons
Notes of other changes in the combination scope (e.g., new subsidiaries, liquidation of subsidiaries, etc.) and relevant situations:
Zhanjiang Branch of Shenzhen Properties & Resources Development (Group) Ltd. was deregistered in the current period.
6. Other
IX. Equity in Other Entities
1. Equity in Subsidiaries
(1) Compositions of the Group
| Name of subsidiaries | Main operating place | Place of registration | Business nature | Shareholding percentage (%) | Way of gaining | |
| Directly | Indirectly | |||||
| Shenzhen Huangcheng Real Estate Co., Ltd. | Shenzhen | Shenzhen | Real estate | 100.00% | Set-up | |
| Shenzhen Wuhe Industry Investment Development Co., Ltd. | Shenzhen | Shenzhen | Real estate | 100.00% | Set-up | |
| Shenzhen Facility Management Community Technology Co., Ltd. | Shenzhen | Shenzhen | Software and information technology services | 35.00% | Business combination not under the same control | |
| Beijing Facility Home Technology Co., Ltd. | Beijing | Beijing | Software and information technology services | 17.85% | Business combination not under the same control | |
| SZPRD Xuzhou Dapeng Real Estate Development Co., Ltd. | Xuzhou | Xuzhou | Real estate | 100.00% | Set-up | |
| Dongguan ITC Changsheng Real Estate Development Co., Ltd. | Dongguan | Dongguan | Real estate | 100.00% | Set-up | |
| SZPRD Yangzhou Real Estate Development Co., Ltd. | Yangzhou | Yangzhou | Real estate | 100.00% | Set-up | |
| Shenzhen International Trade Center Property Management Co., Ltd. | Shenzhen | Shenzhen | Real estate | 100.00% | Set-up | |
| Shenzhen Guomaomei Life Service Co., Ltd. | Shenzhen | Shenzhen | Real estate | 100.00% | Set-up | |
| Shandong Shenguomao Real Estate Management Co., Ltd. | Jinan | Jinan | Real estate | 100.00% | Set-up | |
| Chongqing Shenguomao Real Estate Management Co., Ltd. | Chongqing | Chongqing | Real estate | 100.00% | Set-up | |
| Chongqing Aobo Elevator Co., Ltd. | Chongqing | Chongqing | Service industry | 100.00% | Set-up | |
| Chongqing Tianque Elevator Technology Co., Ltd. | Shenzhen | Shenzhen | Service industry | 100.00% | Set-up | |
| Shenzhen Guoguan Electromechanical Device Co., Ltd. | Shenzhen | Shenzhen | Service industry | 100.00% | Set-up | |
| Shenzhen Guomao Catering Co., Ltd. | Shenzhen | Shenzhen | Accommodation and catering | 100.00% | Set-up | |
| Shenzhen Property Engineering and Construction Supervision Co., Ltd. | Shenzhen | Shenzhen | Service industry | 100.00% | Set-up | |
| SZPRD Commercial Operation Co., Ltd. | Shenzhen | Shenzhen | Service industry | 100.00% | Set-up | |
| Shum Yip Properties Development Co., Ltd. | Hong Kong | Hong Kong | Real estate | 100.00% | Set-up | |
| Wayhang Development Co., Ltd. | Hong Kong | Hong Kong | Real estate | 100.00% | Set-up | |
| Chief Link Properties Co., Ltd. | Hong | Hong | Real estate | 70.00% | Set-up | |
| Kong | Kong | |||||
| Syndis Investment Co., Ltd. | Hong Kong | Hong Kong | Real estate | 70.00% | Business combination not under the same control | |
| Yangzhou Shouxihu Jingyue Property Development Co., Ltd. | Yangzhou | Yangzhou | Real estate | 51.00% | Set-up | |
| Shandong International Trade Center Hotel Management Co., Ltd. | Jinan | Jinan | Real estate | 100.00% | Set-up | |
| Shenzhen Shenshan Special Cooperation Zone Guomao Property Development Co., Ltd. | Shenzhen | Shenzhen | Real estate | 65.00% | Set-up | |
| Shenzhen Guomao Tongle Property Management Co., Ltd. | Shenzhen | Shenzhen | Real estate | 51.00% | Set-up | |
| Shenzhen Rongyao Real Estate Development Co., Ltd. | Shenzhen | Shenzhen | Real estate | 69.00% | Business combination not under the same control | |
| Shenzhen ITC Technology Park Service Co., Ltd. | Shenzhen | Shenzhen | Real estate | 100.00% | Business combination under the same control | |
| Shenzhen Julian Human Resources Development Co., Ltd. | Shenzhen | Shenzhen | Service industry | 100.00% | Business combination under the same control | |
| Shenzhen Huazhengpeng Property Management Development Co., Ltd. | Shenzhen | Shenzhen | Real estate | 100.00% | Business combination under the same control | |
| Shenzhen Jinghengtai Real Estate Development Co., Ltd. | Shenzhen | Shenzhen | Real estate | 100.00% | Business combination under the same control | |
| Shenzhen Penghongyuan Industrial Development Co., Ltd. | Shenzhen | Shenzhen | Accommodation and catering | 100.00% | Business combination under the same control | |
| Shenzhen Jinhailian Property Management Co., Ltd. | Shenzhen | Shenzhen | Real estate | 100.00% | Business combination under the same control | |
| Shenzhen Social Welfare Co., Ltd. | Shenzhen | Shenzhen | Sanitation and social work | 100.00% | Business combination under the same control | |
| Shenzhen Fuyuanmin Property Management Limited Liability Company | Shenzhen | Shenzhen | Real estate | 100.00% | Business combination under the same control | |
| Shenzhen Meilong Industrial Development Co., Ltd. | Shenzhen | Shenzhen | Service industry | 100.00% | Business combination under the same control | |
| Shenzhen Guomao Shenlv Garden Co., Ltd. | Shenzhen | Shenzhen | Public facilities management services | 90.00% | Business combination under the same control | |
| Shenzhen Jiayuan Property Management Co., | Shenzhen | Shenzhen | Real estate | 54.00% | Business |
| Ltd. | combination under the same control | |||||
| Shenzhen Helinhua Construction Management Co., Ltd. | Shenzhen | Shenzhen | Real estate | 90.00% | Business combination under the same control | |
| Shenzhen Zhongtongda House Xiushan Service Co., Ltd. | Shenzhen | Shenzhen | Construction industry | 90.00% | Business combination under the same control | |
| Shenzhen Kangping Industrial Co., Ltd. | Shenzhen | Shenzhen | Retail trade | 90.00% | Business combination under the same control | |
| Shenzhen Sports Service Co., Ltd. | Shenzhen | Shenzhen | Manufacturing industry | 100.00% | Business combination under the same control | |
| Shenzhen Teacher’s Home Training Co., Ltd. | Shenzhen | Shenzhen | Retail trade | 100.00% | Business combination under the same control | |
| Shenzhen Education Industrial Co., Ltd. | Shenzhen | Shenzhen | Service industry | 100.00% | Business combination under the same control | |
| Shenzhen Yufa Industrial Co., Ltd. | Shenzhen | Shenzhen | Retail trade | 80.95% | Business combination under the same control | |
| SZPRD Fuyuantai Development Co., Ltd. | Shenzhen | Shenzhen | Real estate | 100.00% | Set-up | |
| Xiamen Shenguomao Industrial City Smart Service Co., Ltd. | Xiamen | Xiamen | Service industry | 51.00% | Set-up | |
| Vietnam Shenguomao Property Management Co., Ltd. | Shenzhen | Shenzhen | Service industry | 100.00% | Set-up | |
| Shenzhen SZPRD Yanzihu Development Co., Ltd. | Shenzhen | Shenzhen | Real estate | 100.00% | Set-up | |
| Shenzhen Guangming Wuhe Real Estate Co., Ltd. | Shenzhen | Shenzhen | Real estate | 100.00% | Set-up | |
| Dongguan Wuhe Real Estate Co., Ltd. | Dongguan | Dongguan | Real estate | 100.00% | Set-up | |
| Shenzhen Property Management Co., Ltd. | Shenzhen | Shenzhen | Real estate | 100.00% | Business combination under the same control | |
| Shenzhen Shenwu Elevator Co., Ltd. | Shenzhen | Shenzhen | Real estate | 100.00% | Business combination under the same control | |
| Shenzhen Shenfang Property Cleaning Co., Ltd. | Shenzhen | Shenzhen | Real estate | 100.00% | Business combination under the same control | |
| Shenzhen Foreign Trade Property Management Co., Ltd. | Shenzhen | Shenzhen | Real estate | 100.00% | Business combination under the same control | |
| Shenzhen Shenfubao Property Development | Shenzhen | Shenzhen | Real estate | 100.00% | Business |
| Co., Ltd. | combination under the same control | |||||
| Shenzhen Fubao Urban Resources Management Co., Ltd. | Shenzhen | Shenzhen | Real estate | 60.00% | Business combination under the same control | |
| Shenzhen Shenfubao Hydropower Municipal Service Co., Ltd. | Shenzhen | Shenzhen | Real estate | 100.00% | Business combination under the same control | |
| Shenzhen Free Trade Zone Security Service Co., Ltd. | Shenzhen | Shenzhen | Real estate | 100.00% | Business combination under the same control | |
| Shenzhen Wuhe Urban Renewal Co., Ltd. | Shenzhen | Shenzhen | Real estate | 100.00% | Set-up | |
| Yangzhou Wuhe Real Estate Co., Ltd. | Yangzhou | Yangzhou | Real estate | 67.00% | Set-up | |
| Shenzhen Tonglu Wuhe Investment Development Co., Ltd. | Shenzhen | Shenzhen | Real estate | 100.00% | Set-up | |
| Shenzhen International Trade Industry Space Service Co., Ltd. | Shenzhen | Shenzhen | Real estate | 55.00% | Set-up |
Notes of shareholding percentage in subsidiaries different from voting percentage:
In May 2021, Shenzhen Wuhe Industry Investment Development Co., Ltd. (hereinafter referred to as “Wuhe Company”), asubsidiary of the Company, acquired 35% of the equity of Shenzhen Facility Management Community Technology Co., Ltd.(hereinafter referred to as “FMC") through acquisition of equity and directional capital increase. Meanwhile, according to theagreement of the cooperation framework on equity acquisition signed by Wuhe Company and the original shareholders, 16% of thevoting rights that the original shareholders hold or actually control in the equity of FMC shall be unconditionally granted to WuheCompany to exercise after the transaction date. There are no prerequisites for the granting of voting rights, and the term of the votingrights is not stipulated in the contract.Basis of holding half or less voting rights but still controlling the investee and holding more than half of the voting rights but notcontrolling the investee:
Basis of controlling significant structural entities incorporated in the scope of combination:
Basis of determining whether the Company is the agent or the mandatory:
Other notes:
(2) Significant Non-wholly-owned Subsidiary
Unit: RMB
| Name of subsidiaries | Shareholding proportion of non-controlling interests | The profit or loss attributable to the non-controlling interests for the current period | Declaring dividends distributed to non-controlling interests for the current period | Balance of non-controlling interests at the period-end |
| Shenzhen Rongyao Real Estate Development Co., Ltd. | 31.00% | -6,632,248.29 | -2,083,026.51 | |
| Yangzhou Wuhe Real Estate Co., Ltd. | 33.00% | -658,432.42 | 14,920,336.76 | |
| Yangzhou Shouxihu Jingyue Property Development Co., Ltd. | 49.00% | 670,563.20 | 7,168,978.90 | |
| Shenzhen Guomao Shenlv Garden Co., Ltd. | 10.00% | 274,411.75 | 3,911,252.10 |
Holding proportion of non-controlling interests in subsidiary different from voting proportion:
Other notes:
(3) The Main Financial Information of Significant Not Wholly-owned Subsidiary
Unit: RMB
| Name of subsidiaries | Ending balance | Beginning balance | ||||||||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
| Shenzhen Rongyao Real Estate Development Co., Ltd. | 5,745,977,117.37 | 155,181,308.75 | 5,901,158,426.12 | 237,999,312.86 | 5,567,005,771.06 | 5,805,005,083.92 | 5,566,299,658.85 | 148,957,829.54 | 5,715,257,488.39 | 237,683,829.61 | 5,360,025,967.25 | 5,597,709,796.86 |
| Yangzhou Wuhe Real Estate Co., Ltd. | 1,099,431,037.38 | 1,648,461.14 | 1,101,079,498.52 | 1,055,866,356.82 | 1,055,866,356.82 | 1,003,117,568.27 | 923,562.28 | 1,004,041,130.55 | 956,832,739.09 | 956,832,739.09 | ||
| Yangzhou Shouxihu Jingyue Property Development Co., Ltd. | 20,731,894.92 | 924,279.06 | 21,656,173.98 | 6,847,326.21 | 178,278.59 | 7,025,604.80 | 20,620,873.64 | 957,140.53 | 21,578,014.17 | 8,192,080.81 | 123,860.50 | 8,315,941.31 |
| Shenzhen Guomao Shenlv Garden Co., Ltd. | 38,909,502.76 | 667,055.47 | 39,576,558.23 | 29,390,561.94 | 213,213.97 | 29,603,775.91 | 37,872,874.87 | 687,238.86 | 38,560,113.73 | 31,146,187.72 | 185,261.19 | 31,331,448.91 |
Unit: RMB
| Name of subsidiaries | Amount for the current period | Amount for the previous period | ||||||
| Operating Revenue | Net profit | Total comprehensive income | Cash flows from operating activities | Operating Revenue | Net profit | Total comprehensive income | Cash flows from operating activities | |
| Shenzhen Rongyao Real Estate Development Co., Ltd. | -21,394,349.33 | -21,394,349.33 | -132,065,318.90 | -23,400,642.21 | -23,400,642.21 | -33,317,053.14 | ||
| Yangzhou Wuhe Real Estate Co., Ltd. | -1,995,249.76 | -1,995,249.76 | -48,773,537.38 | -473,135.33 | -473,135.33 | 97,048.38 | ||
| Yangzhou Shouxihu Jingyue Property Development Co., Ltd. | 20,845,157.30 | 1,368,496.32 | 1,368,496.32 | -186,738.66 | 18,564,214.66 | 497,456.52 | 497,456.52 | -2,196,922.04 |
| Shenzhen Guomao Shenlv Garden Co., Ltd. | 10,211,925.25 | 2,744,117.50 | 2,744,117.50 | 2,459,431.35 | 7,774,594.39 | -54,237.49 | -54,237.49 | -676,213.24 |
Other notes:
(4) Significant restrictions on leveraging the assets and liquidating the liabilities of the business consortium
(5) Financial support or other support provided to structural entities incorporated into the scope of consolidated financialstatements
Other notes:
2. The Transaction of the Company with Its Owner's Equity Share Changing but the Company StillControls the Subsidiary
(1) Note to the Owner's Equity Share Changed in Subsidiary
(2) The Transaction’s Influence on the Equity of Non-controlling Interests and the Owner's Equity Attributable to theCompany as the Parent
Unit: RMB
| Purchase cost/disposal consideration | |
| -Cash | |
| -Fair value of non-cash assets | |
| Total purchase cost/disposal consideration | |
| Less: Share of net assets of subsidiaries based on percentage of equity acquired/disposed of | |
| Difference | |
| Of which: Adjusting capital reserve | |
| Adjusting surplus reserve | |
| Adjusting retained profits |
Other notes:
3. Equity in Joint Ventures or Associated Enterprises
(1) Significant Joint Ventures or Associated Enterprises
| Name | Main operating place | Place of registration | Business nature | Shareholding percentage (%) | Accounting treatment of the investment to joint venture or associated enterprise | |
| Directly | Indirectly | |||||
| Shenzhen Real Estate Jifa Warehousing Co., Ltd. | Shenzhen | Shenzhen | Warehouse service | 25.00% | 25.00% | Equity method |
| Tian’an International Building Property Management Company of Shenzhen | Shenzhen | Shenzhen | Property management | 50.00% | Equity method | |
| CSCEC Intelligent Parking Technology Co., Ltd. | Shenzhen | Shenzhen | Commercial services | 10.00% | Equity method | |
Notes to holding proportion of joint venture or associated enterprise different from voting proportion:
Basis of holding less than 20% of the voting rights but has a significant impact or holding 20% or more voting rights but does nothave a significant impact:
(2) Main Financial Information of Significant Joint Ventures
Unit: RMB
| Closing balance/amount of the current period | Opening balance/amount of the previous period | |||
| Shenzhen Jifa Warehouse Co., Ltd. | Tian’an International Building Property Management Company of Shenzhen | Shenzhen Jifa Warehouse Co., Ltd. | Tian’an International Building Property Management Company of Shenzhen | |
| Current assets | 10,055,352.57 | 59,891,252.36 | 6,110,801.95 | 58,848,700.91 |
| Of which: Cash and cash equivalents | 9,263,658.15 | 38,883,807.33 | 4,923,260.32 | 37,841,255.88 |
| Non-current assets | 85,788,615.62 | 42,049.96 | 86,342,531.70 | 46,757.57 |
| Total assets | 95,843,968.19 | 59,933,302.32 | 92,453,333.65 | 58,895,458.48 |
| Current liabilities | 2,937,049.65 | 29,200,886.66 | 2,992,163.07 | 28,404,537.12 |
| Non-current liabilities | 16,490,720.38 | 16,415,016.74 | ||
| Total liabilities | 2,937,049.65 | 45,691,607.04 | 2,992,163.07 | 44,819,553.86 |
| Equity of non-controlling interests | ||||
| Equity attributable to shareholders of the Company as the parent | 92,906,918.54 | 14,241,695.28 | 89,461,170.58 | 14,075,904.62 |
| Net assets shares calculated at the shareholding proportion | 46,453,459.27 | 7,120,847.64 | 44,730,585.29 | 7,037,952.31 |
| Adjusted items | ||||
| - Goodwill | ||||
| --Unrealized profit of intra-company transaction | ||||
| --Other | ||||
| Carrying value of equity investment to joint ventures | 46,453,459.27 | 7,120,847.64 | 44,730,585.29 | 7,037,952.31 |
| Fair values of equity investments of joint ventures with quoted prices | ||||
| Operating Revenue | 6,690,430.68 | 8,731,790.54 | 4,516,455.33 | 8,483,323.41 |
| Financial expenses | -7,666.55 | 43,267.67 | -5,293.01 | 41,255.86 |
| Income tax expense | 1,154,005.86 | 55,263.55 | 523,182.56 | 54,163.40 |
| Net profit | 3,445,747.96 | 165,790.66 | 1,569,547.71 | 149,521.04 |
| Net profit from discontinued operations | ||||
| Other comprehensive income | ||||
| Total comprehensive income | 3,445,747.96 | 165,790.66 | 1,569,547.71 | 149,521.04 |
| Dividends received from the joint venture in the current period |
Other notes:
(3) Main Financial Information of Significant Associated Enterprises
Unit: RMB
| Closing balance/amount of the current period | Opening balance/amount of the previous period | |
| CSCEC | CSCEC | |
| Current assets | 267,993,271.29 | 235,089,462.02 |
| Non-current assets | 6,672,968.51 | 3,014,735.77 |
| Total assets | 274,666,239.80 | 238,104,197.79 |
| Current liabilities | 112,739,886.93 | 77,303,723.18 |
| Non-current liabilities | 34,777.90 | 24,777.90 |
| Total liabilities | 112,774,664.83 | 77,333,501.08 |
| Equity of non-controlling interests | ||
| Equity attributable to shareholders of the | 161,891,574.97 | 160,770,696.71 |
| Company as the parent | ||
| Net assets shares calculated at the shareholding proportion | 16,189,157.50 | 16,077,069.67 |
| Adjusted items | ||
| - Goodwill | ||
| --Unrealized profit of intra-company transaction | ||
| --Other | ||
| Carrying value of investment to associated enterprises | 16,189,157.50 | 16,077,069.67 |
| Fair value of equity investments in associated enterprises with publicly quoted prices | ||
| Operating Revenue | 48,983,120.89 | |
| Net profit | 516,190.10 | |
| Net profit from discontinued operations | ||
| Other comprehensive income | ||
| Total comprehensive income | 516,190.10 | |
| Dividends received from the associates in the current period | 63,120.00 |
Other notes:
(4) Summary Financial Information of Insignificant Joint Ventures or Associated Enterprises
Unit: RMB
| Closing balance/amount of the current period | Opening balance/amount of the previous period | |
| Joint venture: | ||
| Sum calculated by shareholding ratio of each item | ||
| Associated enterprises: | ||
| Sum calculated by shareholding ratio of each item |
Other notes:
(5) Note to the Significant Restrictions on the Ability of Joint Ventures or Associated Enterprises toTransfer Funds to the Company
(6) The Excess Loss of Joint Ventures or Associated Enterprises
Unit: RMB
| Name | The cumulative recognized losses in previous accumulatively derecognized | The derecognized losses (or the share of net profit) in current period | The accumulative unrecognized losses in current period |
Other notes:
(7) The Unrecognized Commitment Related to Investment to Joint Ventures
(8) Contingent Liabilities Related to Investment to Joint Ventures or Associated Enterprises
4. Significant Common Operation
| Name | Main operating | Place of | Business nature | Proportion/Share portion |
| place | registration | Directly | Indirectly |
Notes to holding proportion or share portion in common operation different from voting proportion:
For common operation as a single entity, basis of classifying as common operation
Other notes:
5. Equity in the Structured Entity Excluded in the Scope of Consolidated Financial StatementsNotes to the structured entity excluded in the scope of consolidated financial statements:
6. Others
X. Risks Associated with Financial Instruments
The Company is engaged in risk management to achieve balance between risks and returns, minimizing the negative effects of riskson its operation performance and maximizing the interests of its shareholders and other equity investors. Based on that riskmanagement goal, the fundamental strategy of its risk management is to identify and analyze various risks facing the Company,establish an appropriate risk bottom line, carry out risk management and monitor various risks in a timely and reliable manner tocontrol them within a restricted scope.The Company faces various risks related to financial instruments in its routine activities, mainly including credit risk, liquidity riskmarket risk. The management has reviewed and approved the policies of managing those risks, which are summarized as follows.i. Classification of financial instruments
1. The carrying value of financial assets on the balance sheet date
(1) 30 June 2023
| Financial asset project | Financial assets measured at the amortized cost | Financial assets at fair value through profit or loss for the current period | Financial assets measured at fair value through other comprehensive income | Total |
| Monetary assets | 1,392,204,627.76 | 1,392,204,627.76 | ||
| Notes receivable | ||||
| Accounts receivable | 416,925,839.15 | 416,925,839.15 | ||
| Other receivables | 624,876,343.49 | 624,876,343.49 | ||
| Long-term receivables | 21,920,095.92 | 21,920,095.92 | ||
| Other equity investments | 635,355.65 | 635,355.65 |
(2) 31 December 2022
| Item | Financial assets measured at amortized cost | Financial assets at fair value through profit or loss | Financial assets at fair value and changes included in other comprehensive income | Total |
| Monetary capital | 1,517,528,893.83 | 1,517,528,893.83 | ||
| Notes receivable | ||||
| Accounts receivable | 419,933,915.30 | 419,933,915.30 |
| Item | Financial assets measured at amortized cost | Financial assets at fair value through profit or loss | Financial assets at fair value and changes included in other comprehensive income | Total |
| Other receivables | 639,903,523.33 | 639,903,523.33 | ||
| Long-term receivables | 22,651,454.07 | 22,651,454.07 | ||
| Other equity instrument investments | 887,838.64 | 887,838.64 |
2. The carrying value of financial liabilities on the balance sheet date
(1) 30 June 2023
| Item | Financial liabilities at fair value through profit or loss | Other financial liabilities | Total |
| Accounts payable | 497,515,760.20 | 497,515,760.20 | |
| Other payables | 1,704,126,936.52 | 1,704,126,936.52 | |
| Current portion of non-current liabilities | 201,663,040.96 | 201,663,040.96 | |
| Long-term borrowings | 4,172,450,268.17 | 4,172,450,268.17 |
(2) 31 December 2022
| Item | Financial liabilities at fair value through profit or loss | Other financial liabilities | Total |
| Accounts payable | 608,283,388.52 | 608,283,388.52 | |
| Other payables | 1,515,085,832.45 | 1,515,085,832.45 | |
| Current portion of non-current liabilities | 196,645,408.45 | 196,645,408.45 | |
| Long-term borrowings | 3,618,782,344.00 | 3,618,782,344.00 |
ii. Credit riskCredit risk means the risk of financial losses incurred to the other party when one party of a financial instrument is unable to fulfill itsobligations.
1. Credit Risk Management Practice
(1) Credit Risk Evaluation Method
On each balance sheet date, the Company shall evaluate whether the credit risk of relevant financial instruments has increasedsignificantly since the initial recognition. After determining whether the credit risk has increased significantly since the initialrecognition, the Company shall consider obtaining reasonable and reliable information without paying unnecessary extra costs orefforts, including qualitative and quantitative analysis based on historical data, external credit risk rating and forward-lookinginformation. On the basis of the single financial instrument or combination of financial instruments with similar credit riskcharacteristics, the Company compares the risk of default of financial instruments on the balance sheet date with the risk of defaulton the initial recognition date to determine the change of default risk of financial instruments during their expected duration.When one or more of the following quantitative and qualitative criteria prevails, the Company shall believe the credit risk of financialinstruments has increased significantly:
1) For the quantitative standard, it can be mainly analyzed from the probability of default for the remaining duration on the balancesheet date rises by more than a certain proportion compared with the initial confirmation.
2) For the qualitative standard, it can be mainly analyzed from the major adverse changes in the debtor’s operation or financialsituation, changes in existing or expected technology, market, economy or legal environment which shall have major adverse impactson the debtor’s repayment ability of the Company, etc.
3) The upper limit is that the debtor’s contract payment (including principal and interest) is overdue for more than 90 days.
(2) Definition of Default and Credit Impairment-Assets
When a financial instrument meets one or more of the following conditions, the Company shall define the financial asset as havingdefaulted, and its criteria are consistent with the definition of having incurred credit impairment:
1) Quantitative Standard
The debtor fails to make the payment after the contract payment date for more than 90 days;
2) Qualitative Criteria
a. The debtor has major financial difficulties;b. The debtor violates the binding provisions on the debtor in the contract;c. The debtor is likely to go bankrupt or carry out other financial restructurings;d. The creditor shall give the debtor concessions that will not be made in any other circumstances due to the economic or contractualconsiderations related to the debtor’s financial difficulties.
2. Measurement of Expected Credit Loss
The key parameters for measuring expected credit loss included default probability, loss given default and exposure at default. TheCompany considers the quantitative analysis and forward-looking information of historical statistical data (such as counterpartyrating, guarantee method, collateral type, repayment method, etc.) to establish exposure models of default probability, loss givendefault, and default risk.
3. Refer to Note VII-i, VII-v, VII-viii for details of the reconciliation statements of beginning balance and ending balance of financialinstrument loss provision.
4. Credit Risk Exposure and Credit Risk Concentration
The Company's credit risk mainly comes from monetary assets and accounts receivable. To control the aforementioned relevant risks,the Company has adopted the following measures.
(1) Monetary assets
The Company places its monetary assets with financial institutions of high credit ratings. Thus, its credit risk is low.
(2) Accounts receivable
The Company conducts credit assessments on the customers trading in the mode of credit on a regular basis. Based on the creditassessment result, the Company chooses to trade with recognized customers with good credit and monitor the balance of the accountsreceivable from them to ensure that the Company will not face any significant bad debt risk.Due to the Company merely trades with the authorized third party with good credit, the guarantee is not required. Credit riskconcentration is managed in accordance with the customers. As at 30 June 2023, there were certain credit concentration risks in theCompany, and 43.64% of the accounts receivable of the Company (54.09% on 31 December 2022) came from the top 5 customers bybalance. The Company hasn’t held any guarantee or other credit enhancement for balance of accounts receivable.The maximum credit risk exposure the Company undertook shall be the carrying value of each financial asset on balance sheet.iii. Liquidity riskLiquidity risk refers to the risk of fund shortage occurring when the Company fulfills the settlement obligation in the mode of cashdelivery or other financial assets. Liquidity risk may originate from the failure to sell financial assets at fair value as soon as possible;or from the other party’s failure to pay off its contractual debts; or from the earlier maturity of debts; or from the failure to generatethe expected cash flow.To control the risk, the Company comprehensively adopts bank loans as financing approach, appropriately combines long-term andshort-term financing modes and optimizes the financing structure to maintain the balance between financing sustainability andflexibility. The Company has obtained the line of credit from a number of commercial banks to satisfy its operation fund needs andcapital expenditure.Financial liabilities classified by remaining maturity
| Item | Amount at the end of this current period | ||||
| Carrying value | Undiscounted contract amount | Within 1 year | 1-3 years | More than three years | |
| Banking borrowings | 4,172,450,268.17 | 4,537,732,044.74 | 200,674,442.04 | 3,641,854,238.12 | 695,203,364.58 |
| Accounts payable | 497,515,760.20 | 497,515,760.20 | 497,515,760.20 | ||
| Other payables | 1,704,126,936.52 | 1,704,126,936.52 | 1,691,924,260.48 | 12,202,676.04 | |
| Other non-current liabilities due within 1 year | 201,663,040.96 | 201,663,040.96 | 201,663,040.96 | ||
| Total | 6,575,756,005.85 | 6,941,037,782.42 | 2,591,777,503.68 | 3,641,854,238.12 | 707,406,040.62 |
(Continued)
| Item | Opening balance | ||||
| Carrying value | Undiscounted contract amount | Within 1 year | 1-3 years | More than three years | |
| Banking borrowings | 3,618,782,344.00 | 3,998,835,011.38 | 190,669,039.72 | 3,648,297,102.30 | 159,868,869.36 |
| Accounts payable | 608,283,388.52 | 608,283,388.52 | 608,283,388.52 | ||
| Other payables | 1,515,085,832.45 | 1,515,085,832.45 | 1,502,883,156.41 | 12,202,676.04 | |
| Current portion of other non-current liabilities | 196,645,408.45 | 196,645,408.45 | 196,645,408.45 | ||
| Total | 5,938,796,973.42 | 6,318,849,640.80 | 2,498,480,993.10 | 3,648,297,102.30 | 172,071,545.40 |
iv. Market riskMarket risk refers to the risk of fluctuations in the fair value or future cash flows of financial instruments arising from changes inmarket prices. Market risk mainly includes interest rate risk and foreign exchange risk.
1. Interest rate risk
Interest rate risk refers to the risk of fluctuations in the fair value or future cash flows of financial instruments arising from changes inmarket interest rates. Interest-bearing financial instruments with fixed interest rates may bring the fair value interest rate risk to theCompany, while those with floating interest rate may bring the cash flow interest rate risk to the Company. The Company willdetermine the proportion between the financial instruments with fixed interest rate and those with floating interest rate incombination with market environment, and maintain an appropriate portfolio of financial instruments through regular review andmonitoring. The interest rate risk of cash flows facing the Company is mainly related to the bank loans calculated by floating interestrate of the Company.As at 30 June 2023, under the assumption of other fixed variables with 50 basis points changed in interest rate, the bank loan ofRMB4,368,583,592.17 (RMB3,809,915,668.00 on 31 December 2022) calculated at floating rate would not result in significantinfluence on total profit and shareholders’ equity of the Company.
2. Foreign exchange risk
Foreign exchange risk refers to the risk that may lead to the changes of fair value of financial instruments or future cash flows due tofluctuation in exchange rate. The risk of changes of exchange rate facing the Company is mainly related to foreign currencymonetary assets and liabilities of the Company. The Company operates in mainland China, and the main activities are recorded byRMB. Thus, the foreign exchange market risk undertaken is insignificant for the Company.
XI. Disclosure of Fair Value
1. Ending Fair Value of Assets and Liabilities at Fair Value
Unit: RMB
| Item | Closing fair value | |||
| Fair value measurement items at level 1 | Fair value measurement items at level 2 | Fair value measurement items at level 3 | Total | |
| I. Consistent Fair Value Measurement | -- | -- | -- | -- |
| (III) Other equity instrument investment | 635,355.65 | 635,355.65 | ||
| The total amount of assets consistently measured at fair value | 635,355.65 | 635,355.65 | ||
| II. Inconsistent Fair Value Measurement | -- | -- | -- | -- |
2. Basis for Determining the Market Price of Continuous and Non-continuous Level 1 Fair ValueMeasurement ItemsThe other equity instrument held by the Company was shares of listed companies whose fair value wasdetermined based on the closing price on the stock exchange as of 30 June 2023.
3. Continuous and Non-continuous Level 2 Fair Value Measurement Items, Valuation Techniques Used, andThe Qualitative and Quantitative Information of Important Parameters
4. Continuous and Non-continuous Level 3 Fair Value Measurement Items, Valuation Techniques Used, andThe Qualitative and Quantitative Information of Important Parameters
5. Continuous and Non-continuous Level 3 Fair Value Measurement Items, Information On TheAdjustment Between The Opening and Closing Carrying Value, and Sensitivity Analysis of UnobservableParameters
6. Explain the Reason for Conversion and the Governing Policy when the Conversion Happens ifConversion Happens among Consistent Fair Value Measurement Items at Different Levels
7. Changes in the Valuation Technique in the Current Period and the Reason for Such Changes
8. The Fair Value of Financial Assets and Financial Liabilities not Measured at Fair Value
9. Others
XII. Related Party and Related-party Transactions
1. Information Related to the Company as the Parent of the Company
| Name of the Company as the parent | Place of registration | Business nature | Registered capital | Proportion of share held by the Company as the parent against the Company (%) | Proportion of voting rights owned by the Company as the parent against the Company (%) |
| Shenzhen Investment Holdings Co., Ltd. | Shenzhen | Limited liability company (solely-owned by the state) | RMB31,859 million | 56.96% | 56.96% |
Notes: Information on the Company as the parent
(1) The parent company of the Company is Shenzhen Investment Holdings Co., Ltd. (hereinafter referred to as “SIHC”), a newly-established and organized state-owned capital investment company based on the original three state-owned assets managementcompanies in October 2004, and its main function is to manage the partial municipal state-owned companies according to theauthorization of Municipal SASAC. As a government department, Shenzhen State-owned Assets Supervision and AdministrationBureau manages Shenzhen Investment Holdings Co., Ltd. on behalf of People’s Government of Shenzhen Municipality.
(2) During the Reporting Period, SIHC, the controlling shareholder of the Company, transferred 38,037,890 ordinary shares of theCompany in unlimited circulation (representing 6.382% of the total share capital of the Company) held by SIHC to Shenzhen State-owned Equity Management Co., Ltd. for free to replenish the social security funds. Shenzhen State-owned Equity Management Co.,Ltd. is a newly established wholly-owned subsidiary of SIHC to manage the transferred state-owned equity in a special account.After the registration of the free transfer, SIHC held 301,414,637 shares of the Company, accounting for 50.575% of the total sharecapital of the Company, and Shenzhen State-owned Equity Management Co., Ltd. held 38,037,890 shares of the Company,accounting for 6.382% of the total share capital of the Company.The final controller of the Company is Shenzhen State-owned Assets Supervision and Administration Committee of ShenzhenGovernment.Other notes:
2. Subsidiaries of the Company
Refer to Note IX-1.
3. Information on the Joint Ventures and Associated Enterprises of the CompanyRefer to Note IX-3.Information on other joint venture or associated enterprise of occurring related-party transactions with the Company in CurrentPeriod, or forming balance due to related-party transactions made in previous period:
| Name | Relationship with the Company |
Other notes:
4. Information on Other Related Parties
| Name of other related party | Relationship with the Company |
| Shenzhen Xinhai Holding Co., Ltd. | The Company as the parent of Xinhai Rongyao of subsidiary Rongyao Real Estate by non-controlling interests |
| Shenzhen Xinhai Rongyao Real Estate Development Co., Ltd. | Subsidiary Rongyao Real Estate by non-controlling interests |
| Yangzhou Lvfa Real Estate Co., Ltd. | Subsidiary Yangzhou Wuhe by non-controlling interests |
| Shenzhen Wufang Ceramics Industrial Co., Ltd. | Associated enterprise of the Company |
| Shenzhen Real Estate Jifa Warehousing Co., Ltd. | Joint venture of the Company |
| Tian’an International Building Property Management Company of Shenzhen | Joint venture of the Company |
| Shenzhen Shenfubao (Group) Co., Ltd. | Wholly-owned subsidiary of the Company as the parent of the Company |
| Shenzhen Xiangmihu International Exchange Center Development Co., Ltd. | Wholly-owned subsidiary of the Company as the parent of the Company |
| Shenzhen Bay Area Urban Construction and Development Co., Ltd. | Wholly-owned subsidiary of the Company as the parent of the Company |
| Shenzhen Environmental Protection Technology Group Co., Ltd. | Subsidiary of the Company as the parent of the Company |
| Shenzhen Shenzhen Hong Kong Science and Technology Innovation Cooperation Zone Development Co., Ltd. | Subsidiary of the Company as the parent of the Company |
| Shenzhen Bay Technology Development Co., Ltd. | Wholly-owned subsidiary of the Company as the parent of the Company |
| Shenzhen Guarantee Group Co., Ltd. | Subsidiary of the Company as the parent of the Company |
| Shenzhen Infinova Limited | Subsidiary of the Company as the parent of the Company |
| Shenzhen Convention & Exhibition Center Management Co., Ltd. | Wholly-owned subsidiary of the Company as the parent of the Company |
| Shenzhen Sports Center Operation Management Co., Ltd. | Wholly-owned subsidiary of the Company as the parent of the Company |
| China Shenzhen Foreign Trade (Group) Corp. Ltd. | Wholly-owned subsidiary of the Company as the parent of the Company |
| Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. and its consolidated subsidiaries, except where the context otherwise requires | Subsidiary of the Company as the parent of the Company |
| GUOREN PROPERTY AND CASUALTY INSURANCE CO., LTD. | Subsidiary of the Company as the parent of the Company |
| Shenzhen Branch of GUOREN PROPERTY AND CASUALTY INSURANCE CO., LTD. | Parent company’s sub-subsidiary |
| Shenzhen Shentou Property Development Co., Ltd. | Wholly-owned subsidiary of the Company as the parent of the Company |
| Shenzhen General Institute of Architectural Design and Research Co., Ltd. | Wholly-owned subsidiary of the Company as the parent of the Company |
| Shenzhen Water Planning and Design Institute Co., Ltd. | Subsidiary of the Company as the parent of the Company |
| Shenzhen Large Industrial Zone (Shenzhen Export Processing Zone) Development Management Group Co., Ltd. | Wholly-owned sub-subsidiary of the Company as the parent of the Company |
| Shenzhen Fubao Industrial Park Operation Co., Ltd. | Wholly-owned sub-subsidiary of the Company as the parent of the Company |
| Shenzhen Shenfubao Eastern Investment Development Co., Ltd. | Wholly-owned sub-subsidiary of the Company as the parent of the Company |
| Shenzhen Shenfubao (Group) Tianjin Industrial Development Co., Ltd. | Wholly-owned sub-subsidiary of the Company as the parent of the Company |
| Shenzhen Bay Area International Hotel Co., Ltd. | Wholly-owned sub-subsidiary of the Company as the parent of the Company |
| Shenzhen SME Venture Capital Co., Ltd. | Wholly-owned sub-subsidiary of the Company as the parent of the Company |
| Shenzhen Hi-tech Zone Development Construction Co., Ltd. | Wholly-owned sub-subsidiary of the Company as the parent of the Company |
| Shenzhen Bay (Baoding) Innovation Development Co., Ltd. | Wholly-owned sub-subsidiary of the Company as the parent of the Company |
| Shenyue United Investment Co., Ltd. | Wholly-owned sub-subsidiary of the Company as the parent of |
| the Company | |
| Shenzhen Shenfubao (Group) Tianjin Investment Development Co., Ltd. | Wholly-owned sub-subsidiary of the Company as the parent of the Company |
| Shenzhen Shantou Special Cooperation Zone Branch of Shenzhen Water Planning and Design Institute Co., Ltd. | Wholly-owned sub-subsidiary of the Company as the parent of the Company |
| Shenzhen Infinova Smart Park Technology Co., Ltd. | Wholly-owned sub-subsidiary of the Company as the parent of the Company |
| Shenzhen Meibainian Garment Co., Ltd. | Wholly-owned sub-subsidiary of the Company as the parent of the Company |
| Shenzhen Tianjun Industrial Co., Ltd. | Parent company’s grandson company |
| Shenzhen Shendan Credit Enhancement Financing Guarantee Co., Ltd. | Parent company’s grandson company |
| Shenzhen Foreign Service Group Co., Ltd. | Wholly-owned sub-subsidiary of the Company as the parent of the Company |
| Shenzhen Free Trade Zone Life Service Co., Ltd. | Parent company’s grandson company |
| Hebei Shenbao Investment Development Co., Ltd. | Parent company’s grandson company |
| Shenzhen Bay Wanli Hotel Branch of Shenzhen Wuzhou Hotel Management Co., Ltd. | Wholly-owned sub-subsidiary of the Company as the parent of the Company |
| Shenzhen Bay Wanyi Hotel Branch of Shenzhen Wuzhou Hotel Management Co., Ltd. | Wholly-owned sub-subsidiary of the Company as the parent of the Company |
| Shenzhen Infinova Renyong Information Co., Ltd. | Wholly-owned sub-subsidiary of the Company as the parent of the Company |
| Shenzhen Total Logistics Service Co., Ltd. | Parent company’s grandson company |
| Shenzhen SDG Service Co., Ltd. | Parent company’s grandson company |
| Research Institute of Tsinghua University in Shenzhen | Parent company’s subsidiary |
| Shenzhen Talent Recruitment International Co., Ltd. | Wholly-owned sub-subsidiary of the Company as the parent of the Company |
| Shenzhen People's Congress Cadre Training Center | Wholly-owned subsidiary of the Company as the parent of the Company |
| Shenzhen Rule of Law Training Center | Wholly-owned sub-subsidiary of the Company as the parent of the Company |
| Shenzhen South Certification Co., Ltd. | Parent company's sub-subsidiary |
| Shenzhen Properties Group (SPG) Longgang Development Co., Ltd. | Parent company's sub-subsidiary |
| Shenzhen Eternal Asia Deep Supply Chain Management Co., Ltd. | Parent company's sub-subsidiary |
| Shenzhen Petrel Hotel Co., Ltd. | Parent company's sub-subsidiary |
| Shenzhen Cultural Business Development Co., Ltd. | Wholly-owned sub-subsidiary of the Company as the parent of the Company |
| Shenzhen Construction Development (Group) Company | Subsidiary of the Company as the parent of the Company |
| China Kunpeng Industry Source Innovation Center (Shenzhen) Co., Ltd. | Wholly-owned sub-subsidiary of the Company as the parent of the Company |
| Shenzhen Special Zone Literature Magazine Co., Ltd. | Wholly-owned sub-subsidiary of the Company as the parent of the Company |
| Shenzhen Investment Holdings Development Co., Ltd. | Parent company's sub-subsidiary |
| Shenzhen Transportation Station Development Co., Ltd. | Wholly-owned sub-subsidiary of the Company as the parent of the Company |
| Shenzhen High-tech Invest and Venture Capital Co., Ltd. | Parent company's sub-subsidiary |
| Shenzhen Xingye Logistics Co., Ltd. | Parent company's sub-subsidiary |
| Shenzhen Investment Building Hotel Co., Ltd. | Wholly-owned sub-subsidiary of the Company as the parent of the Company |
| Shantou Huafeng Real Estate Development Co., Ltd. | Parent company's sub-subsidiary |
| Shantou Hualin Real Estate Development Co., Ltd. | Parent company's sub-subsidiary |
| Shantou Branch of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. | Parent company's sub-subsidiary |
| Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd. | Parent company's sub-subsidiary |
Other notes:
5. List of Related-party Transactions
(1) Information on Acquisition of Goods and Reception of Labor Service
Information on acquisition of goods and reception of labor service
Unit: RMB
| Related parties | Content of the related-party transaction | Amount for the current period | The approval trade credit | Whether exceed trade credit or not | Amount for the previous period |
| Shenzhen Bay Technology Development Co., Ltd. | Management service fee | 37,673,707.61 | 81,600,000.00 | No | 43,219,580.55 |
| Shenzhen General Institute of Architectural Design and Research Co., Ltd. | Project architectural design service | 2,809,568.52 | |||
| Shenzhen Branch of GUOREN PROPERTY AND CASUALTY INSURANCE CO., LTD. | Insurance | 1,647,215.68 | 2,582,000.00 | No | 909,945.52 |
| Shenzhen Shendan Credit Enhancement Financing Guarantee Co., Ltd. | Guarantee fee | 1,061,950.00 | |||
| Shenzhen Guarantee Group Co., Ltd. | Guarantee fee | 13,656.60 | |||
| Shenzhen Shenfubao (Group) Co., Ltd. | Catering service | 71,780.00 | 26,911.00 | ||
| Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. | Management service fee | 1,262,625.00 | |||
| Shenzhen Foreign Service Group Co., Ltd. | Outsourcing service charges | -521,707.00 | 2,650,014.74 | ||
| Shenzhen Meibainian Garment Co., Ltd. | Apparel procurement | 2,241.00 | |||
| Shenzhen Water Planning and Design Institute Co., Ltd. | Consultant service expense | 53,320.00 | |||
| Shenzhen SDG Service Co., Ltd. | Property service fee | 107,804.26 | 29,165.85 | ||
| Shenzhen Talent Recruitment International Co., Ltd. | Recruitment service fee | 51,686.00 | |||
| Shenzhen People's Congress Cadre | Training service fee | 1,780.00 | 378,811.00 |
| Training Center | |||||
| Shenzhen Rule of Law Training Center | Training service fee | 2,070.00 | |||
| Shenzhen South Certification Co., Ltd. | Consultant service expense | 24,528.30 | |||
| Shenzhen Properties Group (SPG) Longgang Development Co., Ltd. | Management service fee | 1,088,750.00 | 1,033,370.00 | ||
| Shenzhen Eternal Asia Deep Supply Chain Management Co., Ltd. | Beverage procurement | 41,916.00 | 29,940.00 | ||
| Shenzhen Infinova Renyong Information Co., Ltd. | Intelligent engineering expense | 358,900.00 |
Information of sales of goods and provision of labor service
Unit: RMB
| Related parties | Content of the related-party transaction | Amount for the current period | Amount for the previous period |
| Shenzhen Branch of GUOREN PROPERTY AND CASUALTY INSURANCE CO., LTD. | Property service fee | 170,719.10 | |
| Hebei Shenbao Investment Development Co., Ltd. | Project payment for water and electricity | 23,027,002.91 | 6,583,247.61 |
| Hebei Shenbao Investment Development Co., Ltd. | Property service fee | 7,099,846.48 | 4,607,506.85 |
| Shenyue United Investment Co., Ltd. | Property service fee | 406,380.98 | 241,740.58 |
| Shenzhen Guarantee Group Co., Ltd. | Property service fee | 2,084,729.13 | |
| Shenzhen Hi-tech Zone Development Construction Co., Ltd. | Property service fee | 1,404,545.54 | 875,587.86 |
| Shenzhen Convention & Exhibition Center Management Co., Ltd. | Property service fee | 2,753,262.17 | 1,884,845.11 |
| ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. and its consolidated subsidiaries, except where the context otherwise requires | Property service fee | 16,981.15 | 1,326,301.15 |
| Shenzhen Total Logistics Service Co., Ltd. | Property service fee | 2,986,212.81 | 1,530,379.26 |
| Shenzhen Shenzhen Hong Kong Science and Technology Innovation Cooperation Zone Development Co., Ltd. | Property service fee | 531,066.72 | 516,023.58 |
| Shenzhen Large Industrial Zone (Shenzhen Export Processing Zone) Development Management Group Co., Ltd. | Project payment for water and electricity | 232,110.15 | 1,359,633.03 |
| Shenzhen Large Industrial Zone (Shenzhen Export Processing Zone) Development Management Group Co., Ltd. | Property service fee | 37,938.18 | 36,227.22 |
| Shenzhen Fubao Industrial Park Operation Co., Ltd. | Project payment for water and electricity | 4,954.72 | 87,654.97 |
| Shenzhen Fubao Industrial Park Operation Co., Ltd. | Property service fee | 36,566.00 | 41,148.39 |
| Shenzhen Environmental Protection Technology Group Co., Ltd. | Project payment for water and electricity | 90,016.79 | 41,030.00 |
| Shenzhen Environmental Protection Technology Group Co., Ltd. | Property service fee | 3,031,960.52 | 2,642,172.56 |
| Shenzhen Shenfubao (Group) Tianjin Industrial Development Co., Ltd. | Project payment for water and electricity | 46,550.75 | |
| Shenzhen Shenfubao (Group) Tianjin Investment Development Co., Ltd. | Property service fee | 800,000.00 | 3,529,946.35 |
| Shenzhen Shenfubao (Group) Co., Ltd. | Project payment for water and electricity | 2,538,287.16 | 1,064,220.19 |
| Shenzhen Shenfubao (Group) Co., Ltd. | Property service fee | 1,626,536.11 | 2,957,378.73 |
| Shenzhen Shenfubao Eastern Investment Development Co., Ltd. | Project payment for water and electricity | 53,761.47 | |
| Shenzhen Shenfubao Eastern Investment Development Co., Ltd. | Property service fee | 78,872.95 | 38,550.76 |
| Shenzhen Shantou Special Cooperation Zone Branch of Shenzhen Water Planning and Design Institute Co., Ltd. | Property service fee | 11,025.00 | 11,025.00 |
| Shenzhen Sports Center Operation Management Co., Ltd. | Property service fee | 2,224,191.34 | |
| Shenzhen Investment Holdings Co., Ltd. | Project payment for water and electricity | 352,220.28 | |
| Shenzhen Investment Holdings Co., Ltd. | Property service fee | 3,160,290.91 | 7,169,148.87 |
| Shenzhen Bay Area International Hotel Co., Ltd. | Property service fee | 5,408,353.56 | 14,100,000.00 |
| Shenzhen Bay Wanli Hotel Branch of Shenzhen Wuzhou Hotel Management Co., Ltd. | Property service fee | 184,818.24 | |
| Shenzhen Bay Wanyi Hotel Branch of Shenzhen Wuzhou Hotel Management Co., Ltd. | Property service fee | 117,789.97 | |
| Shenzhen SME Venture Capital Co., Ltd. | Property service fee | 654,516.23 | |
| Shenzhen Bay (Baoding) Innovation Development Co., Ltd. | Property service fee | 284,223.66 | 163,100.40 |
| Shenzhen Bay Technology Development Co., Ltd. | Property service fee | 33,767,155.69 | 19,066,931.69 |
| Shenzhen Bay Area Urban Construction and Development Co., Ltd. | Property service fee | 1,113,311.43 | 1,323,523.65 |
| Shenzhen Xiangmihu International Exchange Center Development Co., Ltd. | Project payment | 699,857.70 | |
| Shenzhen Xiangmihu International Exchange Center Development Co., Ltd. | Project payment for water and electricity | 3,355,528.67 | 1,211,630.16 |
| Shenzhen Infinova Limited | Property service fee | 207,342.68 | 117,241.67 |
| Shenzhen Infinova Smart Park Technology Co., Ltd. | Software service expense | 143,838.00 |
| China Shenzhen Foreign Trade (Group) Corp. Ltd. | Property service fee | 1,337,989.45 | |
| China Shenzhen Foreign Trade (Group) Corp. Ltd. | Supervision service fee | 332,075.47 | |
| Shenzhen Tsinghua University Research Institute | Property service fee | 497,261.99 | 508,363.77 |
| Shenzhen Xingye Logistics Co., Ltd. | Property service fee | 5,504.59 | |
| Shenzhen Investment Building Hotel Co., Ltd. | Supervision service fee | 35,377.36 | |
| China Kunpeng Industry Source Innovation Center (Shenzhen) Co., Ltd. | Property service fee | 687,677.12 | 209,433.96 |
| Shenzhen Special Zone Literature Magazine Co., Ltd. | Property service fee | 25,692.48 | 24,826.42 |
| Shenzhen Investment Holdings Development Co., Ltd. | Property service fee | 56,628.61 | 46,157.46 |
| Shenzhen Cultural Business Development Co., Ltd. | Property service fee | 187,580.44 | 215,394.13 |
| Shenzhen Talent Recruitment International Co., Ltd. | Property service fee | 186,707.86 | 167,823.58 |
| Shenzhen Construction Development (Group) Company | Property service fee | 85,617.92 | 85,786.57 |
| Shenzhen South Certification Co., Ltd. | Property service fee | 30,931.60 | 30,875.00 |
| Shenzhen High-tech Invest and Venture Capital Co., Ltd. | Property service fee | 279,021.13 | |
| Shantou Huafeng Real Estate Development Co., Ltd. | Property service fee | 1,167,500.69 | 1,200,494.18 |
| Shantou Hualin Real Estate Development Co., Ltd. | Property service fee | 1,761.75 | |
| Shantou Branch of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. | Property service fee | 219.45 | |
| Shenzhen Petrel Hotel Co., Ltd. | Property service fee | 150,943.40 | 169,811.35 |
| Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd. | Property service fee | 102,532.66 |
Notes to acquisition of goods and reception of labor service
(2) Information on Related-party Trusteeship/Contract
Lists of trusteeship/contract of the Company:
Unit: RMB
| Name of the entruster/contractee | Name of the entrustee/ contractor | Type | Start date | Due date | Pricing basis | Income recognized in this current period |
| Shenzhen Shentou Property Development Co., Ltd. | ShenZhen Properties & Resources Development (Group) Ltd. | Investment properties | 6 November 2019 | 5 November 2025 | Market pricing | 30,678,719.66 |
| Shenzhen Shenfubao (Group) Co., Ltd. | Shenzhen Shenfubao Hydropower Municipal Service Co., Ltd. | Property | 1 January 2023 | 31 December 2023 | Market pricing | 1,191,399.36 |
Notes:
Lists of entrust/contractee
Unit: RMB
| Name of the entruster/contractee | Name of the entrustee/ contractor | Type | Start date | Due date | Pricing basis | Charge recognized in this current period |
Notes:
(3) Information on Related-party Lease
The Company was lessor:
Unit: RMB
| Name of lessee | Category of leased assets | The lease income confirmed in the current period | The lease income confirmed in the previous period |
| Shenzhen Bay Wanli Hotel Branch of Shenzhen Wuzhou Hotel Management Co., Ltd. | Investment properties | 906,136.48 | 957,280.87 |
| Shenzhen Bay Wanyi Hotel Branch of Shenzhen Wuzhou Hotel Management Co., Ltd. | Investment properties | 656,167.79 | 693,203.39 |
The Company was lessee:
Unit: RMB
| Name of lessor | Category of leased assets | Rental expense of simplified short-term leases and low-value asset leases (if applicable) | Variable lease payments that are not covered in the measurement of the lease liabilities (if applicable) | Rent payable | Interest expense on lease liabilities borne | Added right-of-use assets | |||||
| Amount for the current period | Amount for the previous period | Amount for the current period | Amount for the previous period | Amount for the current period | Amount for the previous period | Amount for the current period | Amount for the previous period | Amount for the current period | Amount for the previous period | ||
| Shenzhen Shentou Property Development Co., Ltd. | Investment properties | 341,790.05 | 132,734.00 | 32,655.78 | 57,353.26 | ||||||
| Shenzhen Hi-tech Zone Development Construction Co., Ltd. | Investment properties | 54,243.00 | 4,765.04 | ||||||||
| Shenzhen Large Industrial Zone (Shenzhen Export Processing Zone) Development Management Group Co., Ltd. | Investment properties | 7,381.56 | |||||||||
| ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. and its consolidated subsidiaries, except where the context | Investment properties | 104,000.00 | 435,714.27 | 330,000.00 | 44,091.30 | ||||||
| otherwise requires | |||||||||||
| Shenzhen Petrel Hotel Co., Ltd. | Investment property | 24,048.77 | 14,898.50 |
Notes:
(4) Information on Related-party Guarantee
The Company was guarantor:
Unit: RMB
| Secured party | Amount of guarantee | Start date | End date | Execution accomplished or not |
The Company was secured party
Unit: RMB
| Guarantor: | Amount of guarantee | Start date | End date | Execution accomplished or not |
| Guoren P&C | 82,093,413.89 | 26 June 2022 | 30 April 2024 | Not |
| Shenzhen Shendan Zengxin Financing Guarantee Co., Ltd. | 16,750,000.00 | 29 March 2022 | 28 March 2025 | Not |
| Shenzhen Shendan Zengxin Financing Guarantee Co., Ltd. | 36,850,000.00 | 29 March 2022 | 28 March 2026 | Not |
| Shenzhen Shendan Zengxin Financing Guarantee Co., Ltd. | 13,400,000.00 | 29 March 2022 | 28 March 2027 | Not |
| Shenzhen Credit Guarantee Group Co., Ltd. | 2,895,117.51 | 1 May 2022 | 1 May 2023 | Yes |
Notes:
(5) Information on Inter-bank Lending of Capital of Related Parties
Unit: RMB
| Related parties | Amount | Start date | Maturity date | Note |
| Borrowing | ||||
| Lending | ||||
(6) Information on Assets Transfer and Debt Restructuring by Related Party
Unit: RMB
| Related parties | Content of the related-party transaction | Amount for the current period | Amount for the previous period |
(7) Information on Remuneration for Key Management Personnel
Unit: RMB
| Item | Amount for the current period | Amount for the previous period |
| Remuneration for key management personnel | 5,467,228.36 | 5,059,171.07 |
(8) Other Related-party Transactions
6. Accounts Receivable and Payable of Related Party
(1) Accounts Receivable
Unit: RMB
| Project name | Related parties | Ending balance | Beginning balance | ||
| Carrying amount | Bad debt provision | Carrying amount | Bad debt provision | ||
| Accounts receivable | Hebei Shenbao Investment Development Co., Ltd. | 29,580,856.88 | 887,425.71 | 15,856,697.13 | 475,700.91 |
| Shenyue United Investment Co., Ltd. | 1,880,281.69 | 89,321.49 | 1,545,493.83 | 46,364.81 | |
| Shenzhen Guarantee Group Co., Ltd. | 69,764.97 | 2,092.95 | |||
| Shenzhen Hi-tech Zone Development Construction Co., Ltd. | 2,955,686.43 | 255,635.55 | 3,292,961.84 | 177,657.15 | |
| Shenzhen Convention & Exhibition Center Management Co., Ltd. | 311,415.85 | 23,213.48 | 1,379,512.79 | 55,256.38 | |
| ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. and its consolidated subsidiaries, except where the context otherwise requires | 10,072,563.13 | 1,252,620.81 | 10,072,563.13 | 674,112.86 | |
| Shenzhen Total Logistics Service Co., Ltd. | 842,576.52 | 25,277.30 | 779,745.46 | 23,392.36 | |
| Shenzhen Shenzhen Hong Kong Science and Technology Innovation Cooperation Zone Development Co., Ltd. | 114,435.00 | 3,433.05 | |||
| Shenzhen Large Industrial Zone (Shenzhen Export Processing Zone) Development Management Group Co., Ltd. | 1,063,169.24 | 82,335.08 | 1,811,138.85 | 104,774.17 | |
| Shenzhen Fubao Industrial Park Operation Co., Ltd. | 306,960.04 | 9,208.80 | 307,714.39 | 9,231.43 | |
| Shenzhen Environmental Protection Technology Group Co., Ltd. | 2,325,047.53 | 69,751.43 | 1,331,881.42 | 39,956.44 | |
| Shenzhen Shenfubao (Group) Tianjin Industrial Development Co., Ltd. | 917,263.67 | 66,998.66 | 917,263.67 | 66,998.66 | |
| Shenzhen Shenfubao (Group) Tianjin Investment Development Co., Ltd. | 3,254,324.58 | 112,615.34 | 2,454,324.58 | 88,615.34 | |
| Shenzhen Shenfubao (Group) Co., Ltd. | 4,153,519.42 | 159,605.58 | 3,699,118.44 | 145,973.55 | |
| Shenzhen Shenfubao Eastern Investment Development Co., Ltd. | 13,983.54 | 419.51 | 55.70 | 1.67 | |
| Shenzhen Shentou Property Development Co., Ltd. | 3,607,013.37 | 108,210.40 | 1,500,297.75 | 45,008.93 | |
| Shenzhen Investment Holdings Co., Ltd. | 3,991,522.56 | 139,974.08 | 6,623,892.25 | 218,945.16 | |
| Shenzhen Bay Area International Hotel Co., Ltd. | 51,312,666.65 | 1,539,380.00 | |||
| Shenzhen Bay (Baoding) Innovation Development Co., Ltd. | 156,427.62 | 4,692.83 | 116,061.39 | 3,481.84 | |
| Shenzhen Bay Technology Development Co., Ltd. | 107,824,285.09 | 6,746,937.22 | 131,203,332.93 | 3,936,099.99 | |
| Shenzhen Bay Area Urban Construction and Development Co., Ltd. | 220,039.50 | 6,601.19 | |||
| Shenzhen Xiangmihu International Exchange Center Development Co., Ltd. | 1,743,182.23 | 52,295.47 | 811,111.70 | 24,333.35 | |
| Shenzhen Infinova Smart Park Technology Co., Ltd. | 140,000.00 | 9,600.00 | 320,000.00 | 9,600.00 | |
| Shenzhen Tsinghua University Research Institute | 84,632.14 | 3,393.22 | 113,107.19 | 3,393.22 | |
| China Shenzhen Foreign Trade (Group) Corp. Ltd. | 607,166.50 | 18,215.00 | |||
| China Kunpeng Industry Source Innovation Center (Shenzhen) Co., Ltd. | 366,352.02 | 10,990.56 | 226,669.33 | 6,800.08 | |
| Shenzhen Special Zone Literature Magazine Co., Ltd. | 27,234.00 | 817.02 | |||
| Shenzhen Investment Holdings Development Co., Ltd. | 9,675.93 | 217.56 | 7,251.89 | 217.56 | |
| Shenzhen Bay Wanli Hotel Branch of Shenzhen Wuzhou Hotel Management Co., Ltd. | 846,991.69 | 25,409.75 | |||
| Shenzhen Bay Wanyi Hotel Branch of Shenzhen Wuzhou Hotel Management Co., Ltd. | 452,061.02 | 13,561.83 | |||
| Shenzhen Infinova Limited | 11,792.64 | 353.78 | |||
| Shenzhen Talent Recruitment International Co., Ltd. | 41,516.85 | 1,245.51 | |||
| Shenzhen South Certification Co., Ltd. | 7,986.28 | 239.59 | |||
| Shenzhen Transportation Station Development Co., Ltd. | 4,608.64 | 138.26 | |||
| Shenzhen High-tech Invest and Venture Capital Co., Ltd. | 50.00 | 5.00 | 50.00 | 1.50 | |
| Total | 177,820,186.60 | 10,177,326.98 | 235,867,112.28 | 7,700,823.36 | |
| Contract assets | Hebei Shenbao Investment Development Co., Ltd. | 298,930.06 | 373,225.04 | ||
| Shenzhen Large Industrial Zone (Shenzhen Export Processing Zone) Development Management Group Co., Ltd. | 337,422.67 | 337,422.67 |
| Shenzhen Fubao Industrial Park Operation Co., Ltd. | 26,457.15 | 26,457.15 | |||
| Shenzhen Environmental Protection Technology Group Co., Ltd. | 28,385.93 | ||||
| Shenzhen Shenfubao (Group) Co., Ltd. | 43,500.00 | 43,500.00 | |||
| Shenzhen Shenfubao Eastern Investment Development Co., Ltd. | 14,649.15 | 14,649.15 | |||
| Shenzhen Investment Holdings Co., Ltd. | 139,004.56 | 139,004.56 | |||
| Shenzhen Bay Area Urban Construction and Development Co., Ltd. | 50,169.55 | 50,169.55 | |||
| Shenzhen Xiangmihu International Exchange Center Development Co., Ltd. | 46,418.86 | 46,418.86 | |||
| Total | 956,552.00 | 1,059,232.91 | |||
| Other receivables | Shenzhen Hi-tech Zone Development Construction Co., Ltd. | 199,678.53 | 10,458.60 | 121,714.92 | 5,080.85 |
| ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. and its consolidated subsidiaries, except where the context otherwise requires | 100,000.00 | 10,000.00 | 100,000.00 | 10,000.00 | |
| Shenzhen Large Industrial Zone (Shenzhen Export Processing Zone) Development Management Group Co., Ltd. | 102,583.54 | 3,077.51 | 2,583.54 | 77.51 | |
| Shenzhen Qianhai Advanced Information Service Co., Ltd.1 | 10,720,575.27 | 321,617.26 | 10,720,575.27 | 321,617.26 | |
| Shenzhen Shenfubao Eastern Investment Development Co., Ltd. | 350,000.00 | 10,500.00 | |||
| Shenzhen Shentou Property Development Co., Ltd. | 81,233.00 | 81,233.00 | 81,233.00 | 81,233.00 | |
| Shenzhen Investment Holdings Co., Ltd. | 685,740.90 | 157,127.32 | 685,740.90 | 112,893.70 | |
| Shenzhen Xinhai Holding Co., Ltd. | 201,499,990.18 | 6,044,999.71 | 201,499,990.18 | 6,044,999.71 | |
| Shenzhen Xinhai Rongyao Real Estate Development Co., Ltd. | 375,068,984.55 | 11,252,069.54 | 375,068,984.55 | 11,252,069.54 | |
| Shenzhen Tianjun Industrial Co., Ltd. | 10,000,000.00 | 10,000,000.00 | |||
| Shenzhen Bay Technology Development Co., Ltd. | 16,342,327.84 | 490,269.84 | 4,159,687.50 | 124,790.63 | |
| Shenzhen Wufang Ceramics Industrial Co., Ltd. | 1,747,264.25 | 1,747,264.25 | 1,747,264.25 | 1,747,264.25 |
| China Shenzhen Foreign Trade (Group) Corp. Ltd. | 3,734.83 | 373.48 | |||
| Shenzhen Convention & Exhibition Center Management Co., Ltd. | 1,000.00 | 30.00 | |||
| Total | 616,899,378.06 | 20,128,647.03 | 604,191,508.94 | 19,700,399.93 |
Note 1: The other receivables of the Company to Shenzhen Qianhai Advanced Information Service Co., Ltd. (hereinafter referred toas “Qianhai Advanced”) are advance money paid in advance due to the demolition of Lanhushidai Project. According to the joint andseveral guarantee commitment letter signed by Shenzhen Xinhai Rongyao Real Estate Development Co., Ltd., Xinhai Rongyao isjointly and severally liable for the tax and interest advanced by the Company. Out of prudence, the Company's transactions toQianhai Advanced are disclosed.
(2) Accounts Payable
Unit: RMB
| Project name | Related parties | Ending carrying amount | Beginning carrying amount |
| Accounts payable | Shenzhen Shentou Property Development Co., Ltd. | 891,120.88 | 787,002.77 |
| Shenzhen Infinova Renyong Information Co., Ltd. | 25,203.84 | 25,203.84 | |
| Shenzhen General Institute of Architectural Design and Research Co., Ltd. | 527,200.00 | 1,199,653.20 | |
| Shenzhen SDG Service Co., Ltd. | 282,144.00 | 282,144.00 | |
| Total | 1,725,668.72 | 2,294,003.81 | |
| Other payables | Shenzhen Guarantee Group Co., Ltd. | 1,494,841.29 | 1,494,841.29 |
| Shenzhen Free Trade Zone Life Service Co., Ltd. | 4,850.00 | 4,850.00 | |
| Shenzhen Fubao Industrial Park Operation Co., Ltd. | 6,951.26 | 11,579.00 | |
| Shenzhen Shenfubao (Group) Co., Ltd. | 2,835,952.63 | 2,503,870.62 | |
| Shenzhen Shentou Property Development Co., Ltd. | 8,793,493.79 | 10,126,517.16 | |
| Shenzhen Bay Wanli Hotel Branch of Shenzhen Wuzhou Hotel Management Co., Ltd. | 687,525.00 | 687,525.00 | |
| Shenzhen Bay Wanyi Hotel Branch of Shenzhen Wuzhou Hotel Management Co., Ltd. | 562,521.00 | 562,521.00 | |
| Shenzhen SME Venture Capital Co., Ltd. | 339,760.59 | ||
| Shenzhen Bay Technology Development Co., Ltd. | 154,415,543.77 | 179,966,045.36 | |
| Shenzhen Bay Area Urban Construction and Development Co., Ltd. | 360,752.18 | 360,752.18 | |
| Shenzhen Infinova Limited | 144,219.02 | 144,219.02 | |
| China Shenzhen Foreign Trade (Group) Corp. Ltd. | 132,509.60 | 265,018.43 | |
| Shenzhen Real Estate Jifa Warehousing Co., Ltd. | 42,296,665.14 | 42,296,665.14 | |
| Tian’an International Building Property Management Company of Shenzhen | 5,214,345.90 | 5,214,345.90 | |
| Shenzhen Investment Holdings Co., Ltd. | 868,934.14 | ||
| Shenzhen Foreign Service Group Co., Ltd. | 1,101,949.83 | ||
| Yangzhou Lvfa Real Estate Co., Ltd. | 345,072,717.79 | 313,705,372.89 | |
| Shenzhen Cultural Business Development Co., Ltd. | 773,680.00 | 773,680.00 | |
| Shenzhen Construction Development (Group) Company | 152,227.00 | 152,227.00 |
| Shenzhen Talent Recruitment International Co., Ltd. | 147,132.37 | 147,132.37 | |
| Shenzhen South Certification Co., Ltd. | 34,002.15 | 34,002.15 | |
| Shenzhen Shenfubao Eastern Investment Development Co., Ltd. | 225,912.89 | ||
| Total | 563,355,842.78 | 560,761,809.07 |
7. Commitments of Related Party
8. Other
XIII. Stock Payment
1. The Overall Situation of Share-based Payments
□Applicable ? Not applicable
2. Equity-settled Share-based Payments
□Applicable ? Not applicable
3. Cash-settled Share-based Payments
□Applicable ? Not applicable
4. Modification and Termination of Share-based Payments
5. Others
XIV. Commitments and Contingency
1. Significant Commitments
Significant commitments on balance sheet dateSigned large amount contract under performing or to be performed
| Item | Amount of Current Period | Same period of last year |
| Commitments signed but hasn’t been recognized in large amount | 2,132,088,014.66 | 1,034,954,205.35 |
2. Contingency
(1) Significant Contingency on Balance Sheet Date
(1) The action about transferring Jiabin Building contentious matter
In 1993, the Company signed Right of Development Transfer Contract of Jiabin Building with Shenzhen Jiyong PropertyDevelopment Co., Ltd. (hereinafter referred to as “Jiyong Company”). Since the contract was not effectively executed, the Companysubsequently filed a series of lawsuits against the parties involved in the project, but the outcome was not favorable to the Company.Therefore, the Company calculated and withdrew bad-debt provisions for accounts receivable amounting to RMB93.81 million fromJiyong Company in full in past years for the transfer of Jiabin Building. On 31 October 2018, Shenzhen Intermediate People’s Courtmade a civil award and ruled that the Company's application for the bankruptcy of Jiyong Company would not be accepted. TheCompany appealed against the ruling. On 29 April 2019, the Guangdong Provincial Higher People’s Court ruled to reject theCompany's appeal and maintain the original ruling. As of the issuance date of the report, there is no new progress in the case.
(2) The arbitration case of property contract dispute of Software Park Phase I between the Fourth Owners’ Committee of ShenzhenNanshan District Software Park (Applicant) and Shenzhen ITC Technology Park Service Co., Ltd. (Respondent 1, hereinafterreferred to as the "ITC Technology Park Company") and its High-tech Zone Branch (Respondent 2) for Software Park IIn February and March 2021, High-tech Zone Branch of ITC Technology Park Company and Shenzhen ITC Technology ParkService Co., Ltd. received arbitration notices respectively of the case [2021] Shenguozhongshou No. 541 and [2021]Shenguozhongshou No. 1063. The Fourth Owners’ Committee of Shenzhen Nanshan District Software Park applied for thefollowing award: 1. Respondent 1 shall return RMB9,893,677.82 and fund occupation fee of RMB3,272,665.99 (temporarilycalculated from 1 July 2012 to 31 January 2021), totaling RMB13,166,343.81; Respondent 1 shall bear the attorney’s fee ofRMB30,000.00; Respondent 2 shall return RMB31,077,017.59 and RMB635,929.44 of fund occupation fee (temporarily calculatedfrom 1 July 2020 to 31 January 2021), totaling RMB31,712,947.03; Respondent 2 shall bear the attorney's fee of RMB300,000.00.The total amount of the above is RMB45,209,290.84.
On 21 August 2022, the Arbitration Tribunal held the second hearing to inquire about the audit report issued by the third-partyauditor and the details of the case, on 5 September 2022, Jun & Partners responded to the Special Audit Report of Case No. 541 andCase No. 1063. The arbitration awards on two cases were given on 23 and 24 March 2023 respectively. According to the conclusionof arbitration awards, the High-tech Zone Branch of Shenzhen ITC Technology Park Service Co., Ltd. should return approximately
RMB540,000 of public revenue to the Owners' Committee of Shenzhen Nanshan District Software Park (in spite of RMB32 millionrequested by the Owners' Committee) and bear a part of arbitration fee; in regard to the arbitration case between the ITC TechnologyPark Company and the Owners' Committee of Shenzhen Nanshan District Software Park, all requests of the latter have been rejectedby the arbitration tribunal (in spite of RMB13 million requested by the Owners' Committee). The Owners' Committee, which iscarrying out election of new members, cannot provide any receipt account. Therefore, the respondents are communicating with theapplicant's attorney on details of execution.
(3) Litigation case about Shenzhen Basepoint Intelligent Co., Ltd.
On 20 August 2017, Shenzhen Facility Management Community Technology Co., Ltd. signed Software Service Contract on ChinaMerchants Property Intelligent Facility Management Platform with China Merchants. Meanwhile, the company procured a RMB3million facility management system (consisting of 31 items) from Basepoint for the project. During delivery of the project, only 11items of the system delivered by Basepoint passed the acceptance inspection, leaving the full delivery unfinished. Therefore, theCompany failed to reach a consensus with Basepoint on payment, and the latter sued the Company in 2021, making RMB3 million ofthe Company's fund locked up. According to the judgment of first instance on 10 August 2022, the Company should compensateRMB3 million to Basepoint. The Company refused to accept the first instance judgment and instituted an appeal for second instancein 2022. The second instance is expected to start on 11 August 2023.
(4) Property management fee litigation case regarding Shenzhen Xuansheng Industrial Development Co., Ltd.Haiwai Lianyi Building, No. 12 Yingchun Road, Luohu District, Shenzhen City, is partly owned by the United Front WorkDepartment of the Shenzhen Municipal Committee, and Shenzhen Jinhailian Property Management Co., Ltd. is authorized by theUnited Front Work Department of the Shenzhen Municipal Committee to manage the property. On 31 December 2006, Jinhailianand Shenzhen Xuansheng Industrial Development Co., Ltd. signed the Property Management Agreement of “Haiwai LianyiBuilding”, which agreed that Xuansheng would provide property management services to Jinhailian and Jinhailian would pay thecorresponding property management fees to Xuansheng.On 7 January 2020, Xuansheng signed the Agreement with Jinhailian and the outsider Shenzhen Shengxin Hotel Management Co.,Ltd. and agreed that the three parties reached an agreement on the management fee, principal maintenance fee, and electricity feeowed to Xuansheng from 1 July 2017 to 31 December 2019 on the 5th-8th floor of Haiwai Lianyi Building by Jinhailian as follows:
1) The management fee, principal The amount of maintenance fee and electricity fee is RMB696,033.73; 2) Jinhailian will return theabove arrears repayment date before 22 January 2020; 3) Out of friendly relationship, if Jinhailian cannot return the above arrearsbefore 22 January 2020, then Shengxin Hotel is willing to advance from the rent payable to Jinhailian; 4) If due to objective reasons,Shengxin Hotel cannot complete the lease surrender, Xuansheng will refund this advance in total, and Jinhailian will still return theoutstanding amount. However, both Jinhailian and Shengxin Hotel failed to fulfill their payment obligations as agreed in the saidagreement. In this regard, Xuansheng issued a Notice of Demand for Payment of Arrears on 13 January 2022 and an Attorney’sLetter to Jinhailian on 15 August 2022, demanding to fulfill its obligation to pay a property management fee, principal maintenancefee, and electricity fee totaling RMB696,033.73. On 1 September 2022, Xuansheng appealed to the Shenzhen Luohu DistrictPeople’s Court.As of 31 December 2022, Jinhailian expects to pay RMB766,612.52 (including: property management fee, principal maintenance fee,and electricity fee totaling RMB696,033.73 and overdue interest of RMB70,578.79).On 12 January 2023, the People’s Court of Luohu District, Shenzhen, issued a judgment of first instance, which ruled that ShenzhenJinhailian Property Management Co., Ltd. shall pay Shenzhen Xuansheng Industrial Development Co., Ltd. a total ofRMB696,033.73 for a property management fee, principal maintenance fee, and electricity fee for the period from 1 July 2017 to 31December 2019, and interest for late payment. Jinhailian appealed against the result of the first trial. During the second trialconducted on line, Shenzhen Intermediate People’s Court rejected all requests appealed by Jinhailian and upheld the judgment of thefirst trial.
(5) Others
As a real estate developer, the Company provides mortgage loan guarantees and pays loan deposits for commercial housingpurchasers according to the operation practice of the real estate industry. By 30 June, 2023, the balance of the deposit not dischargedwith guarantee was RMB63,292,452.99, which would be discharged when the mortgage loans are paid off.
(2) Explanation shall be given even if there is no significant contingency for the Company to discloseThere was no significant contingency in the Company to disclose.
3. Others
XV. Events after Balance Sheet Date
1. Significant Non-adjustment Matters
Unit: RMB
| Item | Contents | Influence number to the financial position and operating results | Reason of inability to estimate influence number |
2. Distribution of Profit
3. Sales Return
4. Notes to Other Events after Balance Sheet Date
XVI. Other Significant Events
1. The Accounting Errors Correction in Previous Period
(1) Retrospective Restatement
Unit: RMB
| Content | Processing program | Name of the influenced report items during comparison period | Accumulative impact |
(2) Prospective Application
| Content | Processing program | Reason for adopting prospective application |
2. Debt Restructuring
3. Assets Replacement
(1) Non-monetary Assets Exchange
(2) Other Assets Replacement
4. Pension Plans
5. Discontinued Operations
Unit: RMB
| Item | Revenue | Costs | Total profit | Income tax expense | Net profit | Profit from discontinued operations attributable to owners of the Company as the parent |
| Zhanjiang Branch of Shenzhen Properties & Resources Development (Group) Ltd. deregistered | 0.00 | -5,073.06 | 61,355.83 | 0.00 | 61,355.83 | 61,355.83 |
Other notes:
6. Segment Information
(1) Determination Basis and Accounting Policies of Reportable Segment
In accordance with the internal organization structure, management requirements and internal report system, theCompany identifies the reportable segment based on the business segment, and assesses the operationalperformance of real estate sales, property management and catering service. The assets and liabilities sharing withother segments shall be proportionally distributed among segments by scales.
(2) The Financial Information of Reportable Segment
Unit: RMB
| Item | Real estate | Property management | Leasing business | Offset among segment | Total |
| Operating Revenue | 1,053,881,874.68 | 773,181,325.02 | 78,401,433.15 | 1,905,464,632.85 |
| Operating cost | 695,191,661.52 | 635,461,652.02 | 41,506,570.71 | 1,372,159,884.25 | |
| Total assets | 13,299,291,495.21 | 1,710,738,121.43 | 489,507,593.11 | 15,499,537,209.75 | |
| Total liabilities | 10,449,500,028.22 | 511,639,802.46 | 70,574,307.22 | 11,031,714,137.90 |
(3) If there Was no Reportable Segment, or the Total Amount of Assets and Liabilities of Each ReportableSegment Could not Be Reported, Relevant Reasons Shall Be Clearly Stated
(4) Other notes
7. Other Significant Transactions and Events with Influence on Investors’ Decision-making
8. Other
XVII. Notes of Main Items in the Financial Statements of the Company as the Parent
1. Accounts Receivable
(1) Listed by Category
Unit: RMB
| Category | Ending balance | Beginning balance | ||||||||
| Carrying amount | Bad debt provision | Carrying value | Carrying amount | Bad debt provision | Carrying value | |||||
| Amount | Proportion | Amount | Withdrawal proportion | Amount | Proportion | Amount | Withdrawal proportion | |||
| Accounts receivable withdrawal of Bad debt provision separately accrued | 96,702,269.40 | 96.80% | 96,702,269.40 | 100.00% | 96,702,269.40 | 94.67% | 96,702,269.40 | 100.00% | ||
| Of which: | ||||||||||
| Accounts receivable withdrawal of bad debt provision of by group | 3,201,456.76 | 3.20% | 482,401.07 | 15.07% | 2,719,055.69 | 5,447,776.99 | 5.33% | 310,734.28 | 5.70% | 5,137,042.71 |
| Of which: | ||||||||||
| Total | 99,903,726.16 | 100.00% | 97,184,670.47 | 97.28% | 2,719,055.69 | 102,150,046.39 | 100.00% | 97,013,003.68 | 94.97% | 5,137,042.71 |
Bad debt provision separately accrued: RMB96,702,269.40
Unit: RMB
| Name | Ending balance | |||
| Carrying amount | Bad debt provision | Withdrawal proportion | Reason for withdraw | |
| Shenzhen Jiyong Properties & Resources Development Company | 93,811,328.05 | 93,811,328.05 | 100.00% | Involved in lawsuit and unrecoverable |
| Shenzhen Tewei Industry Co., Ltd. | 2,836,561.00 | 2,836,561.00 | 100.00% | Long aging and expected unrecoverable |
| Luohu District Economic Development Company | 54,380.35 | 54,380.35 | 100.00% | Long aging and expected unrecoverable |
| Total | 96,702,269.40 | 96,702,269.40 | ||
Withdrawal of bad debt provision by group: 482401.07
Unit: RMB
| Name | Ending balance | ||
| Carrying amount | Bad debt provision | Withdrawal proportion | |
| Portfolio of credit risk features | 3,201,456.76 | 482,401.07 | 15.00% |
| Portfolio of transactions with other related parties | |||
| Total | 3,201,456.76 | 482,401.07 | |
Notes to the determination basis for the group:
Withdrawal of bad debt provision by group: RMB482,401.07
Unit: RMB
| Name | Ending balance | ||
| Carrying amount | Bad debt provision | Withdrawal proportion | |
| Within 1 year | 1,413,114.27 | 42,393.43 | 3.00% |
| 1-2 years | 604,586.55 | 60,458.66 | 10.00% |
| 2-3 years | 1,061,644.99 | 318,493.50 | 30.00% |
| 3-4 years | 122,110.95 | 61,055.48 | 50.00% |
| Total | 3,201,456.76 | 482,401.07 | |
Notes to the determination basis for the group:
Please refer to the relevant information of disclosure of bad debt provision of other accounts receivable if adopting the general modeof expected credit loss to withdraw bad debt provision of accounts receivable.
□Applicable ?Not applicable
Disclosure by aging
Unit: RMB
| Aging | Ending balance |
| Within one year (including 1 year) | 1,413,114.27 |
| One to two years | 604,586.55 |
| Two to three years | 1,061,644.99 |
| More than three years | 96,824,380.35 |
| Three to four years | 122,110.95 |
| Over 5 years | 96,702,269.40 |
| Total | 99,903,726.16 |
(2) Bad Debt Provision Withdrawal, Reversed or Recovered in the Current PeriodWithdrawal of bad debt provision:
Unit: RMB
| Category | Beginning balance | Changes in the current period | Ending balance | |||
| Withdrawal | Reversed or recovered | Verification | Others | |||
| Bad debt provision accrued by item | 96,702,269.40 | 96,702,269.40 | ||||
| Withdrawal of bad debt provision by group | 310,734.28 | 171,666.79 | 482,401.07 | |||
| Total | 97,013,003.68 | 171,666.79 | 97,184,670.47 | |||
Of which significant amount of recovered or transferred-back bad debt provision for the current period:
Unit: RMB
| Name of the entity | Amount reversed or recovered | Way of recovery |
(3) Accounts Receivable Written-off in Current Period
Unit: RMB
| Item | Written-off amount |
Of which the verification of significant accounts receivable:
Unit: RMB
| Name of the entity | Nature | Written-off amount | Reason for verification | Verification procedures performed | Whether occurred because of related-party transactions |
Notes to verification of accounts receivable:
(4) Top 5 of the Ending Balance of the Accounts Receivable Collected according to Arrears Party
Unit: RMB
| Name of the entity | Ending balance | Proportion to total ending balance of accounts receivable | Ending balance of bad debt provision |
| Shenzhen Jiyong Properties & Resources Development Company | 93,811,328.05 | 93.90% | 93,811,328.05 |
| Shenzhen Tewei Industry Co., Ltd. | 2,836,561.00 | 2.84% | 2,836,561.00 |
| Shenzhen Feihuang Industrial Co., Ltd. | 769,919.05 | 0.77% | 230,975.72 |
| Shenzhen Meige Xiazi Catering Management Co., Ltd. | 542,366.40 | 0.54% | 162,709.92 |
| Shenzhen Pengxin Property Management Co., Ltd. | 255,875.00 | 0.26% | 7,676.25 |
| Total | 98,216,049.50 | 98.31% |
(5) Accounts receivable derecognized due to the transfer of financial assets
(6) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement ofAccounts Receivable
Other notes:
2. Other Receivables
Unit: RMB
| Item | Ending balance | Beginning balance |
| Dividend receivable | 151,433,108.41 | 151,433,108.41 |
| Other receivables | 4,444,939,247.02 | 5,010,963,761.04 |
| Total | 4,596,372,355.43 | 5,162,396,869.45 |
(1) Interest Receivable
1) Category of Interest Receivable
Unit: RMB
| Item | Ending balance | Beginning balance |
2) Significant Overdue Interest
Unit: RMB
| Entity | Ending balance | Overdue time | Overdue reason | Whether occurred impairment and its judgment basis |
Other notes:
3) Withdrawal of Bad Debt Provision
□Applicable ?Not applicable
(2) Dividend Receivable
1) Category of Dividend Receivable
Unit: RMB
| Project (or investee) | Ending balance | Beginning balance |
| Shenzhen Jinghengtai Real Estate Development Co., Ltd. | 151,433,108.41 | 151,433,108.41 |
| Total | 151,433,108.41 | 151,433,108.41 |
2) Significant Dividends Receivable Aging over 1 Year
Unit: RMB
| Project (or investee) | Ending balance | Aging | Reason | Whether occurred impairment and its judgment basis |
3) Withdrawal of Bad Debt Provision
□Applicable ?Not applicable
Other notes:
(3) Other Receivables
1) Category of Other Receivables by Account Nature
Unit: RMB
| Nature | Ending carrying amount | Beginning carrying amount |
| Guaranteed deposit | 2,240,927.00 | 2,537,789.00 |
| Payment on behalf | ||
| External intercourse funds | 23,202,397.67 | 23,374,171.34 |
| Intercourse funds to subsidiary | 4,451,506,190.80 | 5,017,542,623.59 |
| Total | 4,476,949,515.47 | 5,043,454,583.93 |
2) Withdrawal of Bad Debt Provision
Unit: RMB
| Bad debt provision | First stage | Second stage | Third stage | Total |
| Expected credit loss in the next 12 months | Expected loss in the duration (credit impairment not occurred) | Expected loss in the duration (credit impairment occurred) | ||
| Balance of 1 January 2023 | 8,997,495.81 | 23,493,327.08 | 32,490,822.89 | |
| Balance of 1 January 2023 in the current period | ||||
| Withdrawal of the current period | 31,429.94 | -511,984.38 | -480,554.44 | |
| Balance as at 30 June 2023 | 9,028,925.75 | 22,981,342.70 | 32,010,268.45 |
Changes of carrying amount with significant amount changed of loss provision in the current period
□Applicable ?Not applicable
Disclosure by aging
Unit: RMB
| Aging | Ending balance |
| Within one year (including 1 year) | 4,444,878,230.56 |
| One to two years | 11,200.00 |
| Two to three years | 40,849.05 |
| More than three years | 32,019,235.86 |
| Three to four years | 69,600.00 |
| Over 5 years | 31,949,635.86 |
| Total | 4,476,949,515.47 |
3) Bad Debt Provision Withdrawn, Reversed or Recovered in the Current Period
Withdrawal of bad debt provision:
Unit: RMB
| Category | Beginning balance | Changes in the current period | Ending balance | |||
| Withdrawal | Reversed or recovered | Verification | Others | |||
| Other receivables | 32,490,822.89 | -480,554.44 | 32,010,268.45 | |||
| Total | 32,490,822.89 | -480,554.44 | 32,010,268.45 | |||
Of which the bad debt provision recovered or transferred-back with significant amount during the current period:
Unit: RMB
| Name of the entity | Amount reversed or recovered | Way of recovery |
4) Particulars of the Actual Verification of Other Receivables during the Current Period
Unit: RMB
| Item | Written-off amount |
Of which the verification of significant other receivables:
Unit: RMB
| Name of the entity | Nature | Written-off amount | Reason for verification | Verification procedures performed | Whether occurred because of related-party transactions |
Notes to the verification of other receivables:
5) Top 5 of the Ending Balance of Other Receivables Collected according to the Arrears Party
Unit: RMB
| Name of the entity | Nature | Ending balance | Aging | Proportion to total ending balance of other receivables % | Ending balance of bad debt provision |
| Dongguan Wuhe Real Estate Co., Ltd. | Intercourse funds to subsidiary | 2,113,760,170.00 | Within 1 year | 47.21% | |
| Shenzhen Guangming Wuhe Real Estate Co., Ltd. | Intercourse funds to subsidiary | 1,471,000,000.00 | Within 1 year | 32.86% | |
| Yangzhou Wuhe Real Estate Co., Ltd. | Intercourse funds to subsidiary | 700,614,325.72 | Within 1 year | 15.65% | |
| SZPRD Xuzhou Dapeng Real Estate Development Co., Ltd. | Intercourse funds to subsidiary | 40,568,374.85 | Within 1 year | 0.91% | |
| Shum Yip Properties Development Co., Ltd. | Intercourse funds to subsidiary | 106,409,390.56 | Over 5 years | 2.38% | 6,652,394.80 |
| Total | 4,432,352,261.13 | 99.01% | 6,652,394.80 |
6) Accounts Receivable Involving Government Subsidies
Unit: RMB
| Name of the entity | Project of government subsidies | Ending balance | Ending aging | Estimated recovering time, amount and basis |
7) Derecognition of Other Receivables due to the Transfer of Financial Assets
8) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement of Other Receivables
Other notes:
3. Long-term Equity Investment
Unit: RMB
| Item | Ending balance | Beginning balance | ||||
| Carrying amount | Impairment provision | Carrying value | Carrying amount | Impairment provision | Carrying value | |
| Investment to subsidiaries | 1,433,799,880.39 | 65,834,000.00 | 1,367,965,880.39 | 1,436,329,880.39 | 68,364,000.00 | 1,367,965,880.39 |
| Investment to joint ventures and associated enterprises | 100,559,319.77 | 18,983,614.14 | 81,575,705.63 | 98,765,051.45 | 18,983,614.14 | 79,781,437.31 |
| Total | 1,534,359,200.16 | 84,817,614.14 | 1,449,541,586.02 | 1,535,094,931.84 | 87,347,614.14 | 1,447,747,317.70 |
(1) Investment to Subsidiaries
Unit: RMB
| Investee | Beginning balance (carrying value) | Increase/decrease for the current period | Ending balance (Carrying value) | Ending balance of depreciation reserve | |||
| Additional investment | Reduced investment | Withdrawal of impairment provision | Others | ||||
| Shenzhen Huangcheng Real Estate Co., Ltd. | 35,552,671.93 | 35,552,671.93 | |||||
| Shenzhen Wuhe Industry Investment Development Co., Ltd. | 44,950,000.00 | 44,950,000.00 | |||||
| SZPRD Yangzhou Real Estate Development Co., Ltd. | 50,000,000.00 | 50,000,000.00 | |||||
| Dongguan ITC Changsheng Real Estate Development Co., Ltd. | 20,000,000.00 | 20,000,000.00 | |||||
| Shenzhen International Trade Center Property Management Co., Ltd. | 195,337,851.23 | 195,337,851.23 | |||||
| Shenzhen Property Engineering and Construction Supervision Co., Ltd. | 3,000,000.00 | 3,000,000.00 | |||||
| SZPRD Commercial Operation Co., Ltd. | 63,509,120.32 | 63,509,120.32 | |||||
| Shum Yip Properties Development Co., Ltd. | 15,834,000.00 | ||||||
| SZPRD Xuzhou Dapeng Real Estate Development Co., Ltd. | 50,000,000.00 | ||||||
| Shenzhen Rongyao Real Estate Development Co., Ltd. | 508,000,000.00 | 508,000,000.00 | |||||
| Shenzhen ITC Technology Park Service Co., Ltd. | |||||||
| SZPRD Urban Renewal Co., Ltd. | 77,474,479.29 | 77,474,479.29 | |||||
| Dongguan Wuhe Real Estate Co., Ltd. | 50,000,000.00 | 50,000,000.00 | |||||
| Shenzhen Guangming Wuhe Real Estate Co., Ltd. | 50,000,000.00 | 50,000,000.00 | |||||
| Shenzhen Wuhe Urban Renewal Co., Ltd. | 236,641,757.62 | 236,641,757.62 | |||||
| Yangzhou Wuhe Real Estate Co., Ltd. | 33,500,000.00 | 33,500,000.00 | |||||
| Total | 1,367,965,880.39 | 1,367,965,880.39 | 65,834,000.00 |
(2) Investment to Joint Ventures and Associated Enterprises
Unit: RMB
| Investee | Beginning balance (carrying value) | Increase/decrease for the current period | Ending balance (Carrying value) | Ending balance of depreciation reserve | |||||||
| Additional investment | Reduced investment | Gains and losses recognized under the equity method | Adjustment of other comprehensive income | Changes of other equity | Cash bonus or profits announced to issue | Withdrawal of impairment provision | Others | ||||
| I. Joint ventures | |||||||||||
| Shenzhen Real Estate Jifa Warehousing Co., Ltd. | 44,730,585.29 | 1,722,873.98 | 46,453,459.27 | ||||||||
| Tian’an International Building Property Management Company of Shenzhen | 7,037,952.31 | 82,895.33 | 7,120,847.64 | ||||||||
| Subtotal | 51,768,537.60 | 1,805,769.31 | 53,574,306.91 | ||||||||
| II. Associated enterprises | |||||||||||
| Shenzhen Wufang Ceramics Industrial Co., Ltd. | 18,983,614.14 | ||||||||||
| CSCEC Intelligent Parking Technology Co., Ltd. | 28,012,899.71 | 51,619.01 | 63,120.00 | 28,001,398.72 | |||||||
| Subtotal | 28,012,899.71 | 51,619.01 | 63,120.00 | 28,001,398.72 | 18,983,614.14 | ||||||
| Total | 79,781,437.31 | 1,857,388.32 | 63,120.00 | 81,575,705.63 | 18,983,614.14 | ||||||
(3) Other Notes
4. Operating Revenue and Cost of Sales
Unit: RMB
| Item | Amount for the current period | Amount for the previous period | ||
| Revenue | Cost | Revenue | Cost | |
| Principal business | 995,033,423.48 | 697,320,050.39 | 23,251,320.73 | 16,550,326.74 |
| Others | 8,588,500.36 | 711,099.38 | 8,338,349.86 | 659,988.00 |
| Total | 1,003,621,923.84 | 698,031,149.77 | 31,589,670.59 | 17,210,314.74 |
Relevant information of revenue:
Unit: RMB
| Category of contracts | Segment 1 | Segment 2 | Total | |
| Product categories | ||||
| Of which: | ||||
| Real estate business | 974,533,312.66 | 974,533,312.66 | ||
| House leasing business | 29,088,611.18 | 29,088,611.18 | ||
| Classification by operating region | ||||
| Of which: | ||||
| Shenzhen | 1,003,621,923.84 | 1,003,621,923.84 | ||
| Market or customer type | ||||
| Of which: | ||||
| Contract type | ||||
| Of which: | ||||
| Classification by time of commodity transfer | ||||
| Of which: | ||||
| Classification by contract term | ||||
| Of which: | ||||
| Classification by sales channel | ||||
| Of which: | ||||
| Total | 1,003,621,923.84 | 1,003,621,923.84 |
Information about performance obligations:
The income of the parent company in current period was income from the business of real estate and lease.Information in relation to the transaction price apportioned to the residual contract performance obligation:
The amount of revenue corresponding to performance obligations of contracts signed but not performed or not fully performed yetwas RMB0.00 at the period-end, among which RMB__ was expected to be recognized in __, RMB__ was expected to be recognizedin __, and RMB__ was expected to be recognized in __.
Other notes:
5. Investment Income
Unit: RMB
| Item | Amount for the current period | Amount for the previous period |
| Long-term equity investment income accounted by equity method | 1,857,388.32 | 859,534.38 |
| Entrusted loans interest | 76,724,135.18 | |
| Total | 1,857,388.32 | 77,583,669.56 |
6. Other
XVIII. Supplementary Materials
1. Items and Amounts of Non-recurring Profit or Loss
?Applicable □Not applicable
Unit: RMB
| Item | Amount | Note |
| Gains/losses from the disposal of non-current assets (inclusive of provision for impairment of assets write-offs) | 174,379.69 | |
| Government grants recorded in the current profit or loss (except for those acquired in the ordinary course of company’s business, in line with national policies and regulations, or granted continuously according to certain standard quotas or amounts) | 501,658.00 | |
| Other non-operating income and expense other than the above | -562,616.42 | |
| Less: Income tax effects | 31,670.01 | |
| Non-controlling interests effects | 23,017.77 | |
| Total | 58,733.49 | -- |
Details of other profit and loss items in line with the definition of non-recurring gains and losses:
□Applicable ?Not applicable
There are no other profit and loss items in line with the definition of non-recurring gains and losses in the Company.Note to defining the non-recurring profit and loss items listed in the Explanatory Notice of Information Disclosure by CompaniesOffering Securities to the Public No. 1 - Non-recurring Profit and Loss Items as recurring profit and loss items
□Applicable ?Not applicable
2. Return on Equity and Earnings Per Share
| Profit as of reporting period | Weighted average ROE (%) | EPS | |
| EPS-basic | EPS-diluted | ||
| Net profit attributable to ordinary shareholders of the Company | 4.92% | 0.3707 | 0.3707 |
| Net profit attributable to ordinary shareholders of the Company after deduction of non-recurring profit or loss | 4.92% | 0.3706 | 0.3706 |
3. Accounting Data Differences under PRC GAAP and Those under IFRSs
(1) Differences between Disclosed Net Profits and Net Assets in Financial Report in accordance withInternational Accounting Standards and Chinese Accounting Standards
□Applicable ?Not applicable
(2) Differences between Disclosed Net Profits and Net Assets in Financial Report in accordance withDomestic Accounting Standards and Chinese Accounting Standards
□Applicable ?Not applicable
(3) Explain Reasons for the Differences between Accounting Data Under Domestic and OverseasAccounting Standards; for Any Adjustment Made to the Difference Existing in the Data Audited by theForeign Auditing Agent, Such Foreign Auditing Agent's Name Shall Be Clearly Stated.
4. Others