Financial Statements
I. Audit report
Type of audit opinion Standard and unqualified opinion
Signing date of the audit report March 27, 2026
Name of audit institution Grant Thornton Zhitong Certified Public Accountants LLP
Audit report No. ZTSZ(2026)No. 441A004386
Name of certified public accountant ZHAO Juanjuan, ZHOU Yilan
Main Body of the Audit Report
ZTSZ (2026) No. 441A004386
To all shareholders of Shenzhen Properties & Resources Development (Group) Ltd.:
I. Audit opinions
We have audited the financial statements of Shenzhen Properties & Resources Development (Group)
Ltd. (hereinafter referred to as the "SZPRD"), including the consolidated and the Company's balance
sheet as at December 31, 2025, the consolidated and the Company's income statement, the
consolidated and the Company's statement of cash flows, the consolidated and the Company's
statement of changes in shareholders' equity and related notes to the financial statements for the year
then ended.
In our opinion, the attached financial statements are prepared, in all material respects, in accordance
with the Accounting Standards for Business Enterprises, and fairly present the consolidated and the
Company's financial position of SZPRD as at December 31, 2025 and the consolidated and the
Company's operating results and cash flows for the year then ended.
II. Basis for the audit opinion
We have conducted our audit in accordance with the Chinese Auditing Standards for Certified
Public Accountants. Our responsibilities under these standards are further described in the
"Certified Public Accountant's Responsibilities for the Audit of Financial Statements" section of the
audit report. In accordance with the Code of Ethics for Chinese Certified Public Accountants and
the Independence Standard for Chinese Certified Public Accountants - Requirements for
Independence of Public Interest Entities, we are independent of SZPRD and have fulfilled other
ethical responsibilities. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
III. Key audit matters
Key audit matters are those matters that, in our professional judgment, are of most significance in
our audit of the financial statements of the current period. These matters are addressed in the
context of our audit of the financial statements as a whole, and in forming our opinion thereon, and
we do not provide a separate opinion on these matters.
(I) Recognition and measurement of real estate sales revenue
The relevant disclosures are detailed in Notes III(26) and V(41) to the Financial Statements.
In 2025, SZPRD's real estate sales revenue was RMB 534 million. SZPRD recognizes the revenue
when the real estate meets the delivery conditions stipulated in the contract and the owner obtains
the right of control to the relevant real estate. Due to the large amount of a single property, real
estate sales revenue has a significant impact on SZPRD's operating results. Inaccurate
measurement or recognition in an inappropriate accounting period would have a material impact on
SZPRD's profit. Therefore, we have identified the recognition and measurement of real estate sales
revenue as a key audit matter.
In response to the recognition and measurement of real estate sales revenue, we mainly performed
the following audit procedures:
(1) Understand, evaluate and test the design and operating effectiveness of key internal controls
related to the real estate sales business;
(2) Sample the real estate sales contracts, identify the contract terms and conditions related to the
transfer of control, and evaluate whether SSZPRD's accounting policy for real estate sales revenue
recognition complies with the provisions of the Accounting Standards for Business Enterprises;
(3) For projects with real estate sales revenue recognized in the current year, select samples and
check the supporting documents for property delivery to evaluate whether the recognition of real
estate sales revenue is consistent with SZPRD's revenue recognition accounting policy;
(4) Perform analytical procedures on real estate sales revenue, compare it with the same period in
previous years and with the industry, analyze changes in revenue and gross profit margin, and
assess the reasonableness of the changes;
(5) Perform cut-off tests on the recognition of real estate sales revenue to evaluate whether the real
estate sales revenue was recorded in the appropriate accounting period.
(II) Provision for inventory write-down
The relevant disclosures are detailed in Notes III(13) and V(6) to the Financial Statements.
As of December 31, 2025, the carrying amount of SZPRD's development costs and completed
properties held for sale (hereinafter collectively referred to as "inventories") was RMB 12.331 billion,
with a write-down provision of RMB 1.228 billion and a carrying value of RMB 11.102 billion,
accounting for 71.96% of total assets;
The inventories are measured at the lower of cost and net realizable value. The SZPRD
management (hereinafter referred to as the Management) determines the net realizable value by
the estimated selling price of the relevant finished products minus the estimated cost to be incurred
until completion, estimated selling and distribution expenses and relevant taxes. Due to the
significant amount of inventories and the significant management judgment involved in determining
the net realizable value of inventories, we have identified the provision for inventory depreciation of
SZPRD as a key audit matter.
In response to the provision for inventory depreciation, we mainly performed the following audit
procedures:
(1) Understand, evaluate, and test the design and operating effectiveness of key internal controls
related to the provision for inventory depreciation;
(2) Select samples, observe the inventory projects on site, and inquire with the management about
the progress of the inventory projects;
(3) Evaluated the valuation method adopted by the management, and compared the key estimates
and assumptions used in the valuation, including key estimates and assumptions related to the
estimated selling price, with publicly available market data and sales budgets;
(4) Obtain the net realizable value calculation sheets prepared by the management and recalculate
the amount of net realizable value;
(5) Review the inventory impairment test reports issued by third-party valuation experts engaged by
the management for significant projects through the work of our internal valuation experts;
(6) Evaluate the objectivity, independence and professional competence of the third-party valuation
experts and our internal valuation experts.
IV. Other information
The management of SZPRD is responsible for other information. Other information includes
information covered in the 2025 Annual Report of SZPRD, but excludes the financial statements
and our audit report.
Our audit opinion on the financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with
financial statements or our knowledge obtained during the audit or otherwise appears to be
materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of the
other information, we are required to report that fact. We have nothing to report in this regard.
IV. Responsibilities of the management and those charged with governance for financial
statements
The management of SZPRD is responsible for preparing the financial statements in accordance
with the requirements of Accounting Standards for Business Enterprises to achieve a fair
presentation, and for designing, implementing and maintaining internal control that is necessary to
ensure that the financial statements are free from material misstatements, whether due to frauds or
errors.
In preparing the financial statements, the management is responsible for assessing the going-
concern ability of SZPRD, disclosing matters related to going concern (if applicable) and applying
the going concern basis, unless the management plans to liquidate SZPRD, terminate its
operations or has no other realistic alternative.
Those charged with governance are responsible for overseeing the financial reporting process of
SZPRD.
VI. Responsibilities of certified public accountants for the audit of financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an audit
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with the audit standards will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these financial statements.
We have exercised professional judgment and maintained professional skepticism in performing
our audit under the auditing standards. At the same time, we also implement the following work:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
(2) Understand the internal control related to auditing as a way to design appropriate audit
procedures.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the Management.
(4) Conclude on the appropriateness of the Management's use of the going concern basis of
accounting. At the same time, based on the audit evidence obtained, a conclusion is drawn as to
whether there is a material uncertainty in events or circumstances that may give rise to significant
doubt about the going-concern ability of SZPRD. If we conclude that a material uncertainty exists,
we are required to, in our audit report, draw attention of the users of statements to the related
disclosures in the financial statements; if such disclosures are inadequate, we should modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our audit
report. However, future events or circumstances may cause SZPRD to cease to continue as a
going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, and
whether the financial statements fairly reflect the relevant transactions and events.
(6) Obtain sufficient and appropriate audit evidence regarding the financial information of the
entities or business activities within SZPRD to express an opinion on the financial statements. We
are responsible for the direction, supervision and performance of the group audit. We remain solely
responsible for our audit opinion.
We communicate with those charged with governance regarding the planned scope and timing of
the audit, significant audit findings and other matters, including any significant deficiencies in
internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence, and
where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters
that were of most significance in the audit of the financial statements of this period and are
therefore the key audit matters. We describe these matters in the audit report unless laws and
regulations prohibit public disclosure of these matters, or in extremely rare circumstances, if it is
reasonably expected that the negative consequences of communicating a matter outweigh the
benefits to the public interest in the audit report, we determine not to do so.
Grant Thornton Zhitong Certified Certified Public Accountant of China Zhao Juanjuan
Public Accountants LLP (Engagement partner)
(Special General Partnership)
Certified Public Accountant of China
Zhou Yilan
Beijing, China March 27, 2026
II. Financial statements
The unit in the notes to the financial statements is: RMB
Prepared by: Shenzhen Properties & Resources Development (Group) Ltd.
December 31, 2025
Unit: RMB
Item Ending balance Beginning balance
Current assets:
Monetary funds 2,124,343,056.19 1,678,116,644.12
Balances with clearing companies
Loans to banks and other financial
institutions
Financial assets held for trading 301,765,714.20 0.00
Derivative financial assets
Notes receivable
Accounts receivable 417,784,270.44 476,014,729.60
Receivables financing
Advances to suppliers 9,538,231.89 7,789,173.69
Premiums receivable
Reinsurance accounts receivable
Provision of cession receivable
Other receivables 267,565,109.11 273,333,289.51
Including: interest receivable
Dividends receivable
Financial assets purchased under
resale agreements
Inventories 11,103,909,470.05 10,685,045,153.41
Including: data resources
Contract assets 580,850.15 468,765.62
Assets held for sale 0.00 170,154.05
Non-current assets maturing within one
year
Other current assets 210,498,041.00 181,721,113.82
Total current assets 14,435,984,743.03 13,302,659,023.82
Non-current assets:
Loans and advances
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 269,002,577.39 268,187,805.52
Item Ending balance Beginning balance
Other equity instrument investments 567,317.70 586,231.82
Other non-current financial assets
Investment properties 398,400,543.06 374,035,893.07
Fixed assets 41,751,582.46 52,712,396.64
Construction in progress
Productive biological assets
Oil and gas assets
Right-of-use assets 22,450,067.81 16,967,620.03
Intangible assets 2,155,206.62 471,565.39
Including: data resources
Development expenses
Including: data resources
Goodwill 4,441,864.30 9,446,847.38
Long-term deferred expenses 15,046,783.07 22,110,090.13
Deferred tax assets 212,669,324.77 1,232,152,522.89
Other non-current assets 25,657,943.53 13,875,501.61
Total non-current assets 992,143,210.71 1,990,546,474.48
Total assets 15,428,127,953.74 15,293,205,498.30
Current liabilities:
Short-term borrowings 449,458,211.11 190,165,458.33
Borrowings from central bank
Loans from banks and other financial
institutions
Financial liabilities held for trading
Derivative financial liabilities
Notes payable
Accounts payable 875,642,952.68 1,043,092,277.27
Advances from customers 1,340,490.69 1,744,526.75
Contract liabilities 711,605,295.76 336,164,629.72
Financial assets sold under repurchase
agreements
Absorption of deposits and interbank
deposits
Receivings from vicariously traded
securities
Receivings from vicariously sold
securities
Employee compensation payable 175,823,121.63 207,978,691.61
Taxes payable 78,010,841.03 3,224,280,429.52
Other payables 1,201,487,757.46 1,231,351,436.38
Including: interest payable
Dividends payable 12,202,676.04 12,202,676.04
Item Ending balance Beginning balance
Handling service fee and commissions
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities maturing within
one year
Other current liabilities 58,886,145.36 23,186,263.57
Total current liabilities 7,417,490,128.01 6,764,666,389.45
Non-current liabilities:
Reserves for insurance contracts
Long-term borrowings 3,681,594,912.20 4,755,314,631.26
Bonds payable 548,236,650.58 0.00
Including: preferred shares
Perpetual bonds
Lease liabilities 10,602,827.46 11,089,072.57
Long-term payables 399,470,977.78 399,749,550.00
Long-term employee compensations
payable
Estimated liabilities 973,741.21 934,205.51
Deferred income
Deferred tax liabilities 5,972,301.83 4,100,164.35
Other non-current liabilities 129,540,497.60 126,919,529.02
Total non-current liabilities 4,776,391,908.66 5,298,107,152.71
Total liabilities 12,193,882,036.67 12,062,773,542.16
Owners' equity:
Equity 595,979,092.00 595,979,092.00
Other equity instruments
Including: preferred shares
Perpetual bonds
Capital reserve 80,488,045.38 80,488,045.38
Less: treasury shares
Other comprehensive income -3,587,793.95 -2,200,355.67
Special reserves
Surplus reserves 298,354,949.13 125,425,488.21
General risk reserves
Undistributed profits 2,423,699,479.79 2,561,990,778.58
Total equity attributable to owners of
the parent company
Minority interests -160,687,855.28 -131,251,092.36
Total owners' equity 3,234,245,917.07 3,230,431,956.14
Total liabilities and owners' equity 15,428,127,953.74 15,293,205,498.30
Legal representative: TANG Xiaoping Chief Finance Officer: LIU Qiang Chief Accountant: CAI Kelin
Unit: RMB
Item Ending balance Beginning balance
Current assets:
Monetary funds 957,782,627.13 542,921,067.03
Financial assets held for trading 301,765,714.20
Derivative financial assets
Notes receivable
Accounts receivable 15,245,148.12 112,869,081.78
Receivables financing
Advances to suppliers 60,000.00
Other receivables 8,481,001,540.48 4,279,938,165.85
Including: interest receivable
Dividends receivable
Inventories 48,516,226.68 50,862,399.82
Including: data resources
Contract assets
Assets held for sale
Non-current assets maturing within one
year
Other current assets 5,034,539.25 4,459,085.14
Total current assets 9,809,405,795.86 4,991,049,799.62
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 1,147,285,418.20 1,558,679,206.62
Other equity instrument investments 797,817.70 816,731.82
Other non-current financial assets
Investment properties 272,059,658.53 233,185,594.71
Fixed assets 6,366,246.07 12,189,961.87
Construction in progress
Productive biological assets
Oil and gas assets
Right-of-use assets 1,268,784.23 4,369,643.63
Intangible assets 3,103,333.25 3,495,333.29
Including: data resources
Development expenses
Including: data resources
Goodwill
Long-term deferred expenses
Deferred tax assets 17,309,558.09 4,486,334.83
Other non-current assets 3,300,873.08 3,167,926,650.86
Total non-current assets 1,451,491,689.15 4,985,149,457.63
Total assets 11,260,897,485.01 9,976,199,257.25
Current liabilities:
Short-term borrowings
Financial liabilities held for trading
Derivative financial liabilities
Notes payable
Accounts payable 41,937,990.47 56,048,131.44
Advances from customers
Contract liabilities 211,776.20 761,904.76
Employee compensation payable 33,871,190.21 51,619,107.46
Taxes payable 2,538,236.38 2,376,003.37
Other payables 4,022,493,099.09 6,853,403,083.89
Including: interest payable
Dividends payable 29,642.40 29,642.40
Liabilities held for sale
Non-current liabilities maturing within
one year
Other current liabilities
Total current liabilities 4,188,608,609.25 7,366,829,759.31
Non-current liabilities:
Long-term borrowings 1,473,800,000.00
Bonds payable 548,236,650.58
Including: preferred shares
Perpetual bonds
Lease liabilities 970,553.91 3,082,216.96
Long-term payables 399,470,977.78 399,749,550.00
Long-term employee compensations
payable
Estimated liabilities
Deferred income
Deferred tax liabilities 758,624.61 1,092,410.91
Other non-current liabilities 39,570,000.00 40,000,000.00
Total non-current liabilities 2,462,806,806.88 443,924,177.87
Total liabilities 6,651,415,416.13 7,810,753,937.18
Owners' equity:
Equity 595,979,092.00 595,979,092.00
Other equity instruments
Including: preferred shares
Perpetual bonds
Capital reserve 53,876,380.11 53,876,380.11
Less: treasury shares
Other comprehensive income -3,069,250.24 -3,064,972.70
Special reserves
Surplus reserves 298,354,949.13 125,425,488.21
Undistributed profits 3,664,340,897.88 1,393,229,332.45
Total owners' equity 4,609,482,068.88 2,165,445,320.07
Total liabilities and owners' equity 11,260,897,485.01 9,976,199,257.25
Unit: RMB
Item Year 2025 Year 2024
I. Total operating revenue 2,383,288,250.02 2,734,158,884.05
Including: operating revenue 2,383,288,250.02 2,734,158,884.05
Interest income
Premiums earned
Revenue from handling service fee and
commissions:
II. Total operating costs 2,280,566,036.07 2,711,750,583.36
Including: operating costs 1,737,158,721.74 2,250,014,088.33
Interest expenses
Handling service fee and commissions
Surrender value
Net amount of compensation payout
Net provision for insurance contract
liabilities
Policy dividends
Reinsurance costs
Taxes and surcharges 122,579,049.67 86,911,950.69
Selling and distribution expenses 64,517,135.81 43,995,985.41
G&A expenses 237,736,204.21 284,433,101.74
R&D expenses 4,842,422.28 5,351,808.44
Financial expenses 113,732,502.36 41,043,648.75
Including: interest expenses 123,346,936.11 68,401,770.57
Interest income 13,758,946.05 31,389,808.25
Plus: other income 14,445,679.86 4,561,713.55
Investment income ("-" for losses) 930,705.77 185,619,483.06
Including: investment income from
associates and joint ventures
Gains from derecognition of financial
assets measured at amortized costs
Exchange gains (losses expressed
with "-")
Item Year 2025 Year 2024
Net exposure hedging gains (loss
expressed with "-")
Gains from changes in fair value ("-"
for losses)
Loss from credit impairment (losses
-7,297,655.34 -363,088,397.28
expressed with "-" )
Asset impairment loss (losses
-5,007,842.82 -1,036,113,360.07
expressed with "-")
Gains from disposal of assets (losses
expressed with "-")
III. Operating profit ("-" for loss) 107,703,552.97 -1,186,524,414.19
Plus: non-operating revenue 15,699,075.70 1,067,805.57
Less: non-operating expenses 1,690,452.81 8,355,964.49
IV. Total profits ("-" for total losses) 121,712,175.86 -1,193,812,573.11
Less: income tax expenses 117,018,828.20 93,331,151.00
V. Net profit ("-" for net loss) 4,693,347.66 -1,287,143,724.11
(I) Classified by operating sustainability
(losses expressed with "-")
operations (losses expressed with "-")
(II) Classified by ownership
shareholders of the parent company
VI. Other comprehensive income, net
-1,387,438.28 1,151,982.21
of tax
Other comprehensive income, net of
tax, attributable to owners of parent -1,387,438.28 1,151,982.21
company
(I) Other comprehensive income that
cannot be reclassified into profit or loss -4,277.54 -60,387.90
later
defined benefit plans
cannot be transferred to profit or loss
under the equity method
-4,277.54 -60,387.90
instrument investments
enterprise's own credit risk
(II) Other comprehensive income that
-1,383,160.74 1,212,370.11
will be reclassified into profit or loss
can be transferred to profit or loss
under the equity method
Item Year 2025 Year 2024
investments
reclassified and included in other
comprehensive income
other debt investments
of foreign-currency financial -1,383,160.74 1,212,370.11
statements
Net of tax of other comprehensive
income attributable to minority
shareholders
VII. Total comprehensive income 3,305,909.38 -1,285,991,741.90
Total comprehensive income
attributable to the owner of the parent 32,497,672.30 -1,113,612,939.96
company
Total comprehensive income
-29,191,762.92 -172,378,801.94
attributable to minority shareholders
VIII. Earnings per share
(I) Basic earnings per share 0.0569 -1.8705
(II) Diluted earnings per share 0.0569 -1.8705
In case of any business combination under the same control in the current period, the net profit realized
by the combinee before the combination was RMB , and the net profit realized by the combinee in the
previous period was RMB .
Legal representative: TANG Xiaoping Chief Finance Officer: LIU Qiang Chief Accountant: CAI Kelin
Unit: RMB
Item Year 2025 Year 2024
I. Operating revenue 72,350,293.77 64,213,916.30
Less: operating costs 38,163,396.02 47,304,177.17
Taxes and surcharges 11,722,187.77 5,700,415.15
Selling and distribution expenses 514,067.37 666,120.15
G&A expenses 47,085,515.31 84,866,260.13
R&D expenses
Financial expenses 41,120,566.27 14,386,286.50
Including: interest expenses 49,380,252.72 34,681,762.07
Interest income 11,713,355.19 19,113,464.20
Plus: other income 118,648.59 176,813.10
Investment income ("-" for losses) 2,893,954,820.65 184,223,509.99
Including: investment income from
associates and joint ventures
Item Year 2025 Year 2024
Gains from derecognition of financial
assets measured by amortized costs
(losses expressed with "-")
Net exposure hedging gains (loss
expressed with "-")
Gains from changes in fair value ("-"
for losses)
Loss from credit impairment (losses
expressed with "-" )
Asset impairment loss (losses
-412,208,560.29
expressed with "-")
Gains from disposal of assets (losses
expressed with "-")
II. Operating profits ("-" for loss) 2,430,761,208.57 90,624,033.49
Plus: non-operating revenue 2,041,395.78 29,599.13
Less: non-operating expenses 494,467.31 541,779.71
III. Total profit ("for" total loss) 2,432,308,137.04 90,111,852.91
Less: income tax expenses -11,732,889.31 -3,055,758.39
IV. Net profit ("-" for net loss) 2,444,041,026.35 93,167,611.30
(I) Net profit from continued operation
("-" for net loss)
(II) Net profit from discontinued
operations (losses expressed with "-")
V. Net of tax of other comprehensive
-4,277.54 -60,387.90
income
(I) Other comprehensive income that
cannot be reclassified into profit or loss -4,277.54 -60,387.90
later
defined benefit plans
cannot be transferred to profit or loss
under the equity method
-4,277.54 -60,387.90
instrument investments
enterprise's own credit risk
(II) Other comprehensive income that
will be reclassified into profit or loss
can be transferred to profit or loss
under the equity method
investments
reclassified and included in other
comprehensive income
Item Year 2025 Year 2024
other debt investments
of foreign-currency financial
statements
VI. Total comprehensive income 2,444,036,748.81 93,107,223.40
VII. Earnings per share
(I) Basic earnings per share
(II) Diluted earnings per share
Unit: RMB
Item Year 2025 Year 2024
I. Cash flows from operating activities:
Cash received from sale of goods and
rendering of services
Net increase in deposits from
customers and deposits with banks
and other financial institutions
Net increase in borrowings from central
bank
Net increase in borrowings from banks
and other financial institutions
Cash received from receiving
insurance premium of original
insurance contract
Net cash received from reinsurance
business
Net increase in deposits and
investments from policyholders
Cash received from interests, handling
service fee and commissions
Net increase in borrowings from banks
and other financial institutions
Net increase in funds from repurchase
business
Net cash received from vicariously
traded securities
Refunds of taxes and surcharges
received
Other cash received related to
operating activities
Sub-total of cash inflows from
operating activities
Cash paid for purchase of goods and
receipt of services
Net increase in loans and advances to
Item Year 2025 Year 2024
customers
Net increase in deposits with central
bank and with banks and other
financial institutions
Cash paid for original insurance
contract claims
Net increase in loans to banks and
other financial institutions
Cash paid for interests, handling
service fee and commissions
Cash paid for policy dividends
Cash paid to and on behalf of
employees
Cash paid for taxes and surcharges 2,557,654,917.82 1,057,184,197.95
Other cash paid related to operating
activities
Sub-total of cash outflows from
operating activities
Net cash flows from operating activities -2,086,069,661.63 -1,423,998,174.52
II. Cash flows from investing activities:
Cash received from recovery of
investment
Cash received from investment income 115,933.90 93,455.02
Net cash received from disposal of
fixed assets, intangible assets and 65,095,861.85 55,903,425.50
other long-term assets
Net cash received from disposal of
subsidiaries and other business units
Other cash received related to
investing activities
Sub-total of cash inflows from investing
activities
Cash paid to acquire and construct
fixed assets, intangible assets and 40,433,929.90 10,344,411.99
other long-term assets
Cash paid for investments 374,132,898.98 57,412,000.00
Net increase in pledge loans
Net cash paid to acquire subsidiaries
and other business units
Other cash paid related to investing
activities
Sub-total of cash outflows from
investing activities
Net cash flows from the investing
-291,943,033.13 -11,759,531.47
activities
III. Cash flows from financing activities:
Cash received from absorption of
investments
Item Year 2025 Year 2024
Including: cash received by
subsidiaries from absorption of 0.00 0.00
investments of minority shareholders
Cash received from acquisition of
borrowings
Other cash received related to
financing activities
Sub-total of cash inflows from financing
activities
Cash paid for debt repayments 1,993,287,702.12 502,523,324.00
Cash paid for distribution of dividends
and profits or payment of interests
Including: dividends and profit paid to
minority shareholders by subsidiaries
Other cash paid related to financing
activities
Sub-total of cash outflows from
financing activities
Net cash flows from financing activities 2,811,359,015.81 312,367,653.27
IV. Effect of fluctuation in exchange
-2,100,820.37 1,050,801.90
rate on cash and cash equivalents
V. Net increase in cash equivalents 431,245,500.68 -1,122,339,250.82
Plus: beginning balance of cash
equivalents
VI. Ending balance of cash equivalents 2,042,045,384.98 1,610,799,884.30
Unit: RMB
Item Year 2025 Year 2024
I. Cash flows from operating activities:
Cash received from sale of goods and
rendering of services
Refunds of taxes and surcharges
received
Other cash received related to
operating activities
Sub-total of cash inflows from
operating activities
Cash paid for purchase of goods and
receipt of services
Cash paid to and on behalf of
employees
Cash paid for taxes and surcharges 15,083,901.67 81,029,962.82
Other cash paid related to operating
activities
Sub-total of cash outflows from
operating activities
Net cash flows from operating activities -507,290,695.15 -326,010,380.45
II. Cash flows from investing activities:
Cash received from recovery of
Item Year 2025 Year 2024
investment
Cash received from investment income 115,933.90 93,455.02
Net cash received from disposal of
fixed assets, intangible assets and
other long-term assets
Net cash received from disposal of
subsidiaries and other business units
Other cash received related to
investing activities
Sub-total of cash inflows from investing
activities
Cash paid to acquire and construct
fixed assets, intangible assets and 35,850,952.43 1,251,193.04
other long-term assets
Cash paid for investments 300,000,000.00 314,000,000.00
Net cash paid to acquire subsidiaries
and other business units
Other cash paid related to investing
activities
Sub-total of cash outflows from
investing activities
Net cash flows from the investing
-335,735,018.53 -315,157,738.02
activities
III. Cash flows from financing activities:
Cash received from absorption of
investments
Cash received from acquisition of
borrowings
Other cash received related to
financing activities
Sub-total of cash inflows from financing
activities
Cash paid for debt repayments 842,400,000.00 61,600,000.00
Cash paid for distribution of dividends
and profits or payment of interests
Other cash paid related to financing
activities
Sub-total of cash outflows from
financing activities
Net cash flows from financing activities 1,257,923,053.70 -284,696,872.15
IV. Effect of fluctuation in exchange
-36,595.05 9,238.09
rate on cash and cash equivalents
V. Net increase in cash equivalents 414,860,744.97 -925,855,752.53
Plus: beginning balance of cash
equivalents
VI. Ending balance of cash equivalents 956,646,231.17 541,785,486.20
The current period
Unit: RMB
Year 2025
Equity attributable to owners of the parent company
Item Other equity instruments Minority Total owners'
Less: Other
Capital Special Surplus General risk Undistribute interests equity
Equity Preferred Perpetual treasury comprehensi Others Sub-total
Others reserve reserves reserves reserves d profits
shares bonds shares ve income
I. Ending -
balance last 131,251,092.
year 36
Plus:
changes in
accounting
policies
Correction of
prior period
errors
Others
II. Beginning
balance as -
at the 131,251,092.
beginning of 36
this year
III. Changes
in amount for
the current - -
- 172,929,460. 33,250,723.8
period 138,291,298. 29,436,762.9 3,813,960.93
(decreases 79 2
expressed
with "-")
(I) Total -
- 33,885,110.5 32,497,672.3
comprehensi 29,191,762.9 3,305,909.38
ve income 2
(II) Capital
contributed
or reduced
by owners
shares
contributed
by owners
invested by
the holders
of other
equity
Year 2025
Equity attributable to owners of the parent company
Item Other equity instruments Minority Total owners'
Less: Other
Capital Special Surplus General risk Undistribute interests equity
Equity Preferred Perpetual treasury comprehensi Others Sub-total
Others reserve reserves reserves reserves d profits
shares bonds shares ve income
instruments
of share-
based
payments
recognized
in owners'
equity
(III) Profit 172,929,460.
distribution 92
Withdrawal 172,929,460.
of surplus 92
reserves
Withdrawal
of general
risk reserves
distributed to
owners (or -245,000.00 -245,000.00
shareholders
)
(IV) Internal
transfer of
owners'
equity
Conversion
of capital
reserves into
paid-in
capital (or
share
capital)
Conversion
of surplus
reserves into
paid-in
capital (or
share
capital)
Year 2025
Equity attributable to owners of the parent company
Item Other equity instruments Minority Total owners'
Less: Other
Capital Special Surplus General risk Undistribute interests equity
Equity Preferred Perpetual treasury comprehensi Others Sub-total
Others reserve reserves reserves reserves d profits
shares bonds shares ve income
reserves
offsetting
losses
in benefit
plans
transferred
to retained
earnings
other
comprehensi
ve income
into retained
earnings
(V) Special
reserves
Withdrawal
in the current
period
used in the
current
period
(VI) Others 753,051.55 753,051.55 753,051.55
IV. Balance
as at the end 595,979,092. 80,488,045.3 - 298,354,949. 2,423,699,47 3,394,933,77 3,234,245,91
of the current 00 8 3,587,793.95 13 9.79 2.35 7.07
period
Amount in previous period
Unit: RMB
Year 2024
Equity attributable to owners of the parent company
Item Other equity instruments Minority Total owners'
Other
Capital Less: treasury Special Surplus General risk Undistributed interests equity
Equity comprehensiv Others Sub-total
Preferred Perpetual reserve shares reserves reserves reserves profits
Others e income
shares bonds
I. Ending
balance last -3,352,337.88
year
Plus: changes
in accounting
policies
Correction of
prior period
errors
Others
II. Beginning
balance as at 595,979,092. 80,488,045.3 116,108,727. 3,872,586,80 4,661,810,32 41,914,707.0 4,703,725,03
-3,352,337.88
the beginning 00 8 08 2.17 8.75 6 5.81
of this year
III. Changes
in amount for
the current - - - -
period 1,151,982.21 9,316,761.13 1,310,596,02 1,300,127,28 173,165,799. 1,473,293,07
(decreases 3.59 0.25 42 9.67
expressed
with "-")
(I) Total - - - -
comprehensiv 1,151,982.21 1,114,764,92 1,113,612,939 172,378,801. 1,285,991,74
e income 2.17 .96 94 1.90
(II) Capital
contributed or
reduced by
owners
shares
contributed by
owners
invested by
the holders of
other equity
instruments
share-based
payments
recognized in
Year 2024
Equity attributable to owners of the parent company
Item Other equity instruments Minority Total owners'
Other
Capital Less: treasury Special Surplus General risk Undistributed interests equity
Equity Preferred Perpetual comprehensiv Others Sub-total
Others reserve shares reserves reserves reserves profits
shares bonds e income
owners'
equity
- - -
(III) Profit
distribution
of surplus 9,316,761.13 -9,316,761.13
reserves
of general risk
reserves
- - -
distributed to
owners (or
shareholders)
(IV) Internal
transfer of
owners'
equity
of capital
reserves into
paid-in capital
(or share
capital)
of surplus
reserves into
paid-in capital
(or share
capital)
reserves
offsetting
losses
benefit plans
transferred to
retained
earnings
other
comprehensiv
Year 2024
Equity attributable to owners of the parent company
Item Other equity instruments Minority Total owners'
Other
Capital Less: treasury Special Surplus General risk Undistributed interests equity
Equity Preferred Perpetual comprehensiv Others Sub-total
Others reserve shares reserves reserves reserves profits
shares bonds e income
e income into
retained
earnings
(V) Special
reserves
in the current
period
used in the
current period
(VI) Others -568,863.59 -568,863.59 -568,863.59
IV. Balance
as at the end 595,979,092. 80,488,045.3 125,425,488. 2,561,990,77 3,361,683,04 3,230,431,95
-2,200,355.67 131,251,092.
of the current 00 8 21 8.58 8.50 6.14
period
The current period
Unit: RMB
Year 2025
Other equity instruments Other
Item Less: treasury Surplus Undistributed Total owners'
Equity Preferred Capital reserve comprehensive Special reserves Others
Perpetual bonds Others shares reserves profits equity
shares income
I. Ending
balance last 595,979,092.00 53,876,380.11 -3,064,972.70 125,425,488.21
year
Plus: changes in
accounting
policies
Correction of
prior period
errors
Others
II. Beginning 1,393,229,332.4 2,165,445,320.0
balance as at 595,979,092.00 53,876,380.11 -3,064,972.70 125,425,488.21
the beginning of
Year 2025
Other equity instruments Other
Item Less: treasury Surplus Undistributed Total owners'
Equity Preferred Capital reserve comprehensive Special reserves Others
Perpetual bonds Others shares reserves profits equity
shares income
this year
III. Changes in
amount for the
current period 2,271,111,565.4 2,444,036,748.8
-4,277.54 172,929,460.92
(decreases 3 1
expressed with
"-")
(I) Total
comprehensive -4,277.54
income
(II) Capital
contributed or
reduced by
owners
shares
contributed by
owners
invested by the
holders of other
equity
instruments
share-based
payments
recognized in
owners' equity
(III) Profit
distribution
surplus reserves
distributed to
owners (or
shareholders)
(IV) Internal
transfer of
owners' equity
capital reserves
into paid-in
capital (or share
Year 2025
Other equity instruments Other
Item Less: treasury Surplus Undistributed Total owners'
Equity Preferred Capital reserve comprehensive Special reserves Others
Perpetual bonds Others shares reserves profits equity
shares income
capital)
surplus reserves
into paid-in
capital (or share
capital)
reserves
offsetting losses
benefit plans
transferred to
retained
earnings
other
comprehensive
income into
retained
earnings
(V) Special
reserves
the current
period
in the current
period
(VI) Others
IV. Balance as
at the end of the 595,979,092.00 53,876,380.11 -3,069,250.24 298,354,949.13
current period
Amount in previous period
Unit: RMB
Year 2024
Item Other equity instruments Other
Less: treasury Undistributed Total owners'
Equity Capital reserve comprehensive Special reserves Surplus reserves Others
Preferred shares Perpetual bonds Others shares profits equity
income
I. Ending balance
last year
Plus: changes in
Year 2024
Item Other equity instruments Other
Less: treasury Undistributed Total owners'
Equity Capital reserve comprehensive Special reserves Surplus reserves Others
Preferred shares Perpetual bonds Others shares profits equity
income
accounting
policies
Correction of
prior period
errors
Others
II. Beginning
balance as at the
beginning of this
year
III. Changes in
amount for the
current period
-60,387.90 9,316,761.13 -102,094,626.53 -92,838,253.30
(decreases
expressed with "-
")
(I) Total
comprehensive -60,387.90 93,167,611.30 93,107,223.40
income
(II) Capital
contributed or
reduced by
owners
shares
contributed by
owners
invested by the
holders of other
equity
instruments
share-based
payments
recognized in
owners' equity
(III) Profit
distribution
surplus reserves
distributed to
-185,945,476.70 -185,945,476.70
owners (or
shareholders)
(IV) Internal
transfer of
owners' equity
Year 2024
Item Other equity instruments Other
Less: treasury Undistributed Total owners'
Equity Capital reserve comprehensive Special reserves Surplus reserves Others
Preferred shares Perpetual bonds Others shares profits equity
income
capital reserves
into paid-in
capital (or share
capital)
surplus reserves
into paid-in
capital (or share
capital)
reserves
offsetting losses
benefit plans
transferred to
retained earnings
other
comprehensive
income into
retained earnings
(V) Special
reserves
the current period
in the current
period
(VI) Others
IV. Balance as at
the end of the 595,979,092.00 53,876,380.11 -3,064,972.70 125,425,488.21 1,393,229,332.45 2,165,445,320.07
current period
III. Company profile
Shenzhen Properties & Resources Development (Group) Ltd. (hereinafter referred to as "the Company")
was established with the approval of the Shenzhen Municipal People's Government of Guangdong
Province under the official document SFBF [1991] No. 831. It was restructured from the former
Shenzhen Properties Development General Company into a joint stock limited company, registered
with the Shenzhen Administration for Market Regulation on January 17, 1983, and headquartered in
Shenzhen, Guangdong Province. The Company currently holds a Business License for Enterprise
Legal Person with the registration number/unified social credit code 91440300192174135N, a
registered capital of RMB 595,979,092, and a total of 595,979,092 shares (with a par value of RMB 1
per share). Of which, restricted tradable shares include 1,898,306 A shares and 0 B shares ；
unrestricted tradable shares comprise 526,475,543 A shares and 67,605,243 B shares. The Company's
shares have been listed on the Shenzhen Stock Exchange since March 30, 1992.
The Company operates in the real estate industry. The primary operating activities include real estate
development and commercial property sales, construction and management of commercial buildings,
property leasing, and construction supervision. Domestic commerce and the supply and marketing
industry (excluding state-monopolized, exclusively distributed, and specially controlled commodities).
Main products/services include: development and sales of commercial residential properties; property
management service; building maintenance, equipment maintenance for buildings, landscaping and
gardening, and cleaning services; property leasing services; engineering supervision; retail of Chinese
cuisine, Western cuisine, alcoholic beverages, etc.
The financial statements were approved for external release at the 5th Meeting of the 11th Board of
Directors on March 27, 2026.
The consolidation scope of the Company's consolidated financial statements is determined based on
control, including the financial statements of the Company and all its subsidiaries. A subsidiary refers to
an enterprise or entity controlled by the Company. A total of 56 subsidiaries are included in the
consolidation scope of the consolidated statements during the current period. For details regarding the
scope of consolidated financial statements and its changes, refer to Notes 9 and 10 to the financial
statements.
IV. Basis for preparation of financial statements
The financial statements are prepared on the going concern basis, reflecting actual transaction events,
in accordance with the relevant provisions of the Accounting Standards for Business Enterprises, and
based on the significant accounting policies and accounting estimates described below.
The Company has no events or conditions that raise significant doubts about its ability to continue as a
going-concern ability for the twelve months following the end of the reporting period.
V. Significant accounting policies and accounting estimates
Tips of specific accounting policies and accounting estimates:
The Company, based on its actual production and operational characteristics and in accordance with
the relevant Accounting Standards for Business Enterprises, has established specific accounting
policies and accounting estimates for transactions and events such as revenue recognition. For details,
refer to the respective sections below: "Financial Instruments," "Inventories," and "Revenue."
The financial statements of the Company, prepared on the aforementioned basis for preparation,
comply with the requirements of the latest Accounting Standards for Business Enterprises and their
application guidelines, interpretations, and other relevant regulations (collectively referred to as the
"Accounting Standards for Business Enterprises") issued by the Ministry of Finance. They fairly and
completely reflect the Company's financial position, operating results, cash flows, and other relevant
information.
In addition, the preparation of this financial report references the presentation and disclosure
requirements stipulated in the CSRC's Rules for the Preparation and Disclosure of Information by
Companies Offering Securities to the Public No. 15 – General Requirements for Financial Reports
(2023 Revision) and the Notice on the Implementation of New Accounting Standards for Business
Enterprises by Listed Companies (Accounting Department Letter [2018] No. 453).
The company adopts the calendar year as its accounting period, which runs from January 1 to
December 31 each year.
For industries other than real estate, the Companies' operating cycles are relatively short, and a 12-
month period is used as the threshold for classifying the liquidity of assets and liabilities. The operating
cycle in the real estate industry spans from property development to sales realization, generally
exceeding 12 months. The specific duration is determined by the nature of the development project,
with the operating cycle itself serving as the criterion for classifying the liquidity of assets and liabilities.
The Company and its domestic subsidiaries adopt RMB as their recording currency. The overseas
subsidiaries of the Company determine their recording currency based on the currency of the primary
economic environment in which they operate. The Company prepares its financial statements using
RMB as the reporting currency.
? Applicable Not applicable
Item Importance criteria
Significant accounts receivable with the provision for bad
Accounts receivable balances of RMB 5 million or more
debts made on an individual basis
A non-wholly-owned subsidiary with revenue exceeding
Major non-wholly-owned subsidiaries 10% of the consolidated operating revenue, or total assets
exceeding 5% of the consolidated total assets.
under common control
(1) Accounting treatments for business combination under common control
For business combinations under common control, the assets and liabilities acquired by the Company
from the acquiree are measured at the book value of the acquiree in the consolidated financial
statements of the ultimate controller as of the combination date. The difference between the book value
of the merger consideration (or the total par value of the shares issued) and the book value of the net
assets acquired in the merger is adjusted against capital reserve, and if the capital reserve is
insufficient to absorb the difference, the adjustment is made to retained earnings.
In a business combination under common control achieved through multiple transactions in stages, the
assets and liabilities of the combined party acquired by the Company in the combination are measured
at their book value in the ultimate controller's consolidated financial statements as of the combination
date; the difference between the sum of the book value of the pre-combination investment held and the
book value of the new consideration paid on the combination date, and the book value of the net assets
acquired in the combination, is adjusted against capital reserve. If the capital reserve is insufficient to
absorb the difference, the adjustment is made to retained earnings. For the long-term equity
investments held by the combining party in the combined party before obtaining the right of control, the
recognized profit or loss, other comprehensive income, and other changes in owners' equity between
the later of the date the original equity was acquired and the date when both the combining party and
the combined party first came under the ultimate controller's control, up to the combination date, shall
be offset against either the retained earnings at the beginning of the comparative statements period or
the current period's profit or loss.
(2) Accounting treatments for business combination not under common control
In a business combination not under common control, the combination cost is determined as the fair
value of the assets transferred, liabilities incurred or assumed, and equity securities issued by the
acquirer on the acquisition date to obtain the right of control over the acquiree. On the acquisition date,
the assets, liabilities, and contingent liabilities obtained from the acquiree are recognized at fair value.
On the acquisition date, the Company recognizes the difference between the combination cost and the
fair value share of net identifiable assets obtained from the acquiree as goodwill, which is subject to
subsequent measurement at cost less accumulated provision for impairment; the difference between
the combination cost and the fair value share of net identifiable assets obtained from the acquiree is,
after verification, recognized in profit or loss.
In a business combination not under common control achieved through multiple transactions in stages,
the combination cost is the sum of the consideration paid on the acquisition date and the fair value of
the equity interest in the acquiree held prior to the acquisition date as of the acquisition date. For equity
interests in the acquiree held prior to the acquisition date, such interests are remeasured at their fair
value as of the acquisition date, and the difference between the fair value and the book value is
recognized in current period investment income; for equity interests in the acquiree held prior to the
acquisition date, any other comprehensive income and other changes in owners' equity related to such
interests are reclassified to profit or loss on the acquisition date, except for other comprehensive
income arising from the remeasurement of the net liabilities under defined benefit plans or changes in
net assets of the acquiree, and other comprehensive income related to non-trading equity instrument
investments previously designated as measured at fair value with changes recognized in other
comprehensive income.
(3) Treatment of transaction costs in business combination
In a business combination, intermediary fees, such as audit, legal services, valuation consulting, and
other related G&A expenses incurred for the transaction are recognized in profit or loss when incurred.
The transaction costs incurred for issuing equity securities or debt securities as merger consideration
are included in the initial recognized amount of such equity securities or debt securities.
statements
(1) Judgment criteria for control
The consolidation scope in the consolidated financial statements is determined on the basis of control.
Control means that the Company has the power over the investees, participates in their relevant
activities to obtain variable returns, and has the ability to use that power to affect the amount of returns
from the investees. When changes in relevant facts and circumstances lead to changes in the key
elements related to the definition of control, the Company will re-evaluate accordingly.
When determining whether to include a structured entity within the consolidation scope, the Company
comprehensively evaluates all relevant facts and circumstances, including assessing the structured
entity's purpose and design, identifying the types of variable returns, and evaluating whether control
exists over the structured entity based on its participation in relevant activities that expose it to some or
all variability of returns.
(2) Preparation methods for consolidated financial statements
Consolidated financial statements are prepared by the Company based on the financial statements of
the Company and its subsidiaries, along with other relevant materials. In preparing consolidated
financial statements, the accounting policies and reporting periods of the Company and its subsidiaries
must be consistent, and significant intercompany transactions and balances are eliminated.
During the reporting period, subsidiaries and businesses added due to a business combination under
common control are treated as having been included in the Company's consolidation scope from the
date they came under the control of the ultimate controller. Their operating results and cash flows from
that date are incorporated into the consolidated income statement and consolidated statement of cash
flows, respectively.
For subsidiaries and businesses added during the reporting period due to a business combination not
under common control, the Company includes their revenue, expenses, and profits from the acquisition
date to the end of the reporting period in the consolidated income statement, and incorporates their
cash flows into the consolidated statement of cash flows.
The portion of a subsidiary's shareholders' equity not attributable to the Company is presented
separately as minority interests under shareholders' equity in the consolidated balance sheet; the share
of the subsidiary's net profit or loss attributable to minority interests is presented in the consolidated
income statement under the net profit item as "minority interest income". If the losses borne by minority
shareholders exceed the share of owners' equity they hold at the beginning of the subsidiary's period,
the excess continues to be deducted from the minority interests.
(3) Purchase of minority shareholders' equity in a subsidiary
The difference between the cost of newly acquired long-term equity investments from the purchase of
minority interests and the proportionate share of the subsidiary's net asset share calculated based on
the increased ownership ratio from the acquisition date or combination date, as well as the difference
between the disposal proceeds from partial disposal of equity investments in a subsidiary without loss
of control and the proportionate share of the subsidiary's net asset share attributable to the disposed
long-term equity investments calculated from the acquisition date or combination date, shall be adjusted
against capital reserve in the consolidated balance sheet. If the capital reserve is insufficient to offset
the difference, the remaining amount shall be adjusted against retained earnings.
(4) Treatment for loss of right of control over subsidiaries
When the Company disposes of a portion of its equity investments or loses the right of control over the
original subsidiary due to other reasons, the remaining equity interest shall be remeasured at fair value
as of the date of loss of control; the difference between the total of the consideration received from the
disposal of equity and the fair value of the remaining equity interest, less the sum of the subsidiary's net
assets attributable to the original ownership percentage calculated based on book value from the
acquisition date and the related goodwill, shall be recognized as investment income in the period of loss
of control.
Other comprehensive income related to equity investments in the former subsidiary shall be reclassified
on the same basis as if the subsidiary had directly disposed of the related assets or liabilities upon loss
of control, and other changes in owners' equity previously recognized under accounting by equity
method related to the former subsidiary shall be transferred to profit or loss in the period of loss of
control.
(5) Treatment for the disposal of equity in stages until loss of control occurs
If the terms, conditions, and economic effects of multiple transactions involving the disposal of equity in
stages until loss of control meet one or more of the following conditions, the Company shall account for
such transactions as a package of transactions：
when considered together with the others.
When conducting a disposal of equity in stages until the loss of the right of control occurs, the
measurement of the remaining equity interest and the recognition of profit or loss related to the disposal
shall follow the same accounting principles as those described in the preceding section for "Treatment
upon Loss of Control of a Subsidiary." Prior to the loss of control, the difference between the
consideration received from each disposal and the disposing investment's proportionate share of the
subsidiary's net assets calculated based on book value from the acquisition date shall be accounted for
as follows:
other comprehensive income. The related amounts shall be transferred to profit or loss during the
period of loss of control.
transactions in the capital reserve (equity premium/capital premium). Upon loss of control, the related
amounts shall not be transferred to profit or loss in the period of loss of control.
(1) Identification and classification of joint venture arrangements
A joint venture arrangement refers to an arrangement under the common control of two or more parties.
A joint venture arrangement has the following characteristics: 1) all participating parties are bound by
the arrangement; 2) two or more participating parties exercise common control over the arrangement.
No single participating party can control the arrangement individually, and any party with common
control over the arrangement can prevent other parties or combinations of parties from exercising
individual control.
Common control refers to the control shared over an arrangement in accordance with the relevant
stipulations, and the decision-making of related activities of the arrangement should not be made before
the party sharing the right of control agrees the same.
Joint venture arrangements are classified into joint operation and joint venture. A joint operation refers
to those joint venture arrangements under which the joint venture is entitled to relevant assets and be
responsible for relevant liabilities. A joint venture refers to a joint venture arrangement in which the
participating parties only have rights to the net assets of the arrangement.
(2) Accounting treatment for joint venture arrangements
Participants in a joint operation shall recognize the following items related to their proportionate share in
the joint operations and account for them in accordance with the Accounting Standards for Business
Enterprises: 1) Recognize individually held assets and recognize jointly held assets based on their
proportionate share; 2) Recognize individually incurred liabilities and recognize jointly incurred liabilities
based on their proportionate share; 3) Recognize revenue from the sale of their share of the output of
the joint operations; 4) Recognize their proportionate share of the revenue generated by the joint
operations from the sale of output; 5) Recognize individually incurred expenses and recognize
expenses of the joint operations based on their proportionate share.
Participants in joint ventures shall account for their investments in joint ventures in accordance with
Accounting Standards for Business Enterprises No. 2 - Long-term Equity Investments.
The term cash in the statement of cash flows refers to a company's cash on hand and deposits that are
readily available for payment. Cash equivalents are short-term, highly liquid investments that are readily
convertible to known amounts of cash and subject to an insignificant risk of changes in value.
(1) Translation of foreign currency transactions
Foreign currency transactions shall be translated into RMB upon initial recognition using an exchange
rate that approximates the spot exchange rate on the transaction date. At the balance sheet date,
foreign currency monetary items shall be translated using the spot exchange rate on the balance sheet
date. Exchange differences resulting from differences between the spot exchange rate on the balance
sheet date and the spot exchange rate at initial recognition or the previous balance sheet date shall be
recognized in profit or loss; foreign currency non-monetary items measured at historical cost shall
continue to be translated using the exchange rate that approximates the spot exchange rate on the
transaction date; foreign currency non-monetary items measured at fair value shall be translated using
the spot exchange rate on the date the fair value is determined. The difference between the translated
amount in the recording currency and the original recording currency amount shall be recognized in
profit or loss or other comprehensive income based on the nature of the non-monetary items.
(2) Translation of foreign-currency financial statements
At the balance sheet date, when translating the foreign currency financial statements of overseas
subsidiaries, the assets and liability items in the balance sheet shall be translated using the spot
exchange rate on the balance sheet date; for owners' equity items, except for the "undistributed profits"
item, all other items shall be translated using the spot exchange rate on the transaction date; the
revenue and expense items in the income statement shall be translated using an exchange rate that
approximates the spot exchange rate on the transaction date; all items in the statement of cash flows
shall be translated at the exchange rate that approximates the spot exchange rate on the date the cash
flows occurred. The difference arising from the translation of financial statements shall be recognized in
the "other comprehensive income" item under shareholders' equity in the balance sheet.
(1) Recognition and derecognition of financial instruments
The Company recognizes financial assets or financial liabilities when it becomes a party to financial
instruments contracts.
Financial assets bought and sold in the ordinary course are subject to recognition and derecognition
using trade date accounting. The buying and selling of financial assets in the ordinary course refers to
receiving or delivering financial assets within the time frame prescribed by laws, regulations, or
common practices, in accordance with the contractual terms. Trading date refers to the date on which
the Company commits to buy or sell financial assets.
Derecognition shall be applied to a financial asset (or a portion thereof, or a group of similar financial
assets) when the following conditions are met,i.e., it shall be removed from the Company's accounts
and balance sheet.
assets as described below.
If the present obligation of a financial liability is fully or partially discharged, the liability (or the
discharged portion) is derecognized. If the Company (as the obligor) and the creditor enter into an
agreement to assume a new financial liability to replace the existing financial liability, and the
contractual terms of the new financial liability are substantially different from those of the existing one,
the existing financial liabilities shall be derecognized and the new financial liability shall be recognized
simultaneously.
(2) Classification and measurement of financial assets
At initial recognition, the Company classifies financial assets into the following three categories based
on its business model for managing financial assets and the contractual cash flows characteristics of
the financial assets: financial assets measured at amortized costs, financial assets measured at fair
value with changes recognized in other comprehensive income, and financial assets measured at fair
value with changes recognized in profit or loss. Financial assets are initially recognized at fair value. For
financial assets measured at fair value with changes recognized in profit or loss, related transaction
costs are directly recognized in profit or loss. For other categories of financial assets, related
transaction costs are included in their initial recognized amount. For accounts receivable arising from
the sale of goods or provision of services without including or considering significant financing
components, the Company recognizes the consideration amount the Company expects to be entitled to
receive as the initial recognized amount. The subsequent measurement of financial assets depends on
their classification.
A financial asset shall be classified as measured at amortized costs if it meets both of the following
conditions: the Company's business model for managing the financial assets is to collect contractual
cash flows, and the contractual cash flows of the financial assets represent solely payments of principal
and interest on the principal amount outstanding; the contractual terms of the financial assets stipulate
that the cash flows generated on specified dates solely represent payments of principal and interest
calculated based on the outstanding principal amount. For such financial assets, the effective interest
method is applied, and their subsequent measurement is performed at amortized costs, with gains or
losses arising from their amortization or impairment recognized in profit or loss.
comprehensive income
A financial asset shall be classified as measured at fair value with changes recognized in other
comprehensive income if it meets both of the following conditions: the Company's business model for
managing the financial assets is both to collect contractual cash flows and to sell the financial assets,
and the contractual cash flows of the financial assets represent solely payments of principal and
interest on the principal amount outstanding; the contractual terms of the financial assets stipulate that
the cash flows generated on specified dates solely represent payments of principal and interest
calculated based on the outstanding principal amount. For such financial assets, fair value is used for
subsequent measurement. The discount or premium is amortized using the effective interest method
and recognized as interest income or expense. Except for impairment losses and exchange differences
on foreign currency monetary financial assets recognized in profit or loss, the fair value changes of
such financial assets are recognized in other comprehensive income until the financial asset is
derecognized, at which time the cumulative gains or losses are reclassified to profit or loss. Interest
income related to such financial assets shall be recognized in profit or loss.
comprehensive income
The Company irrevocably elects to designate certain non-trading equity instrument investments as
financial assets measured at fair value with changes recognized in other comprehensive income.
Dividend income related to such assets is recognized in profit or loss, fair value changes are
recognized in other comprehensive income, and cumulative gains or losses arising from such changes
are reclassified to retained earnings upon derecognition of the financial assets.
Financial assets other than those measured at amortized costs and those measured at fair value with
changes recognized in other comprehensive incomes shall be classified as financial assets measured
at fair value with changes recognized in profit or loss. At initial recognition, financial assets may be
designated as measured at fair value with changes recognized in profit or loss to eliminate or
significantly reduce an accounting mismatch. For such financial assets, fair value is used for
subsequent measurement, and all fair value changes are recognized in profit or loss.
The Company shall reclassify all affected related financial assets if and only if it changes its business
model for managing financial assets.
(3) Classification and measurement of financial liabilities
At initial recognition, the Company's financial liabilities are classified into financial liabilities measured at
amortized costs and financial liabilities measured at fair value with changes recognized in profit or loss.
Financial liabilities that meet one of the following conditions may be designated at initial measurement
to be measured at fair value, with changes recognized in profit or loss: 1) the designation eliminates or
significantly reduces accounting mismatch; 2) financial liabilities or a combination of financial assets
and financial liabilities are managed and evaluated based on fair value according to the formal written
documents outlining the Group's risk management or investment strategies, and reports are provided to
key officers within the Group based on this information; 3) The financial liabilities contain embedded
derivative instruments that need to be separately split.
The Company determines the classification of financial liabilities at initial recognition. For financial
liabilities measured at fair value with changes recognized in profit or loss, the related transaction costs
are recognized directly in profit or loss. For other financial liabilities, the related transaction costs are
included in their initial recognized amount.
Subsequent measurement of financial liabilities depends on their classification:
For such financial liabilities, subsequent measurement is conducted using the effective interest method
at amortized costs, and gains or losses arising from derecognition or amortization are recognized in
profit or loss.
Financial liabilities measured at fair value with changes recognized in profit or loss include financial
liabilities held for trading (including derivatives that are financial liabilities) and those initially designated
as measured at fair value with changes recognized in profit or loss. For such financial liabilities,
subsequent measurement is conducted at fair value, and gains or losses arising from fair value
changes, as well as dividends and interest expenses related to these financial liabilities, are recognized
in profit or loss.
(4) Offsetting of financial instruments
Financial assets and financial liabilities are presented in the balance sheet at their net amounts after
offsetting, provided that the following conditions are met: there is a legally enforceable right to offset the
recognized amounts, and the right to offset is currently exercisable; there is a plan to settle on a net
basis or simultaneously realize the financial assets and settle the financial liabilities.
(5) Impairment of financial instruments
The Company shall conduct impairment treatment and recognize provision for loss based on expected
credit losses for the following items.
①Financial assets measured at amortized costs;
② Accounts receivable and investments in debt instruments measured at fair value with changes
recognized in other comprehensive income;
③Contract assets as defined in Accounting Standards for Business Enterprises No. 14 - Revenue;
④Lease receivables;
⑤ Loan commitments not classified as financial liabilities measured at fair value with changes
recognized in profit or loss;
⑥Financial guarantee contracts (except those measured at fair value with changes recognized in profit
or loss, or transfer of financial assets that do not meet derecognition criteria or continue involvement
with the transferred financial assets).
Expected credit losses refer to the weighted average of credit losses on financial instruments, weighted
by the risk of default occurring. Credit loss refers to the difference between all contractual cash flows
receivable under the contract (discounted by the Company using the original effective interest rate) and
all expected cash flows to be collected, i.e., the present value of all cash shortfalls. Specifically, for
financial assets purchased or originated by the Company that have incurred a credit loss, the
discounting is based on the credit-adjusted effective interest rate of that financial assets.
For financial assets purchased or originated by the Company that have incurred a credit loss, the
Company recognizes only the cumulative changes in expected credit losses over the entire expected
life since initial recognition as the provision for loss on the balance sheet date.
For accounts receivable that either do not contain a significant financing component or for which the
Company does not consider the financing component in contracts with a term of one year or less, the
Company applies a simplified measurement approach to measure the provision for loss at an amount
equal to the lifetime expected credit losses.
For lease receivables and accounts receivable containing a significant financing component, the
Company applies a simplified measurement approach to measure the provision for loss at an amount
equal to the lifetime expected credit losses.
Except for financial assets measured under the aforementioned methods, the Company assesses
whether their credit risk has increased significantly since initial recognition at each balance sheet date.
If the credit risk has increased significantly since the initial recognition, the Company measures the
provision for loss at an amount equal to the lifetime expected credit losses; if the credit risk has not
increased significantly since initial recognition, the Company measures the provision for loss at an
amount equal to the expected credit losses within the next 12 months of the financial instruments.
The Company utilizes available reasonable and supportable information, including forward-looking
information, by comparing the risk of default occurring on the financial instruments as of the balance
sheet date with the risk of default at initial recognition date, to determine whether the credit risk of the
financial instruments has increased significantly since initial recognition.
As of the balance sheet date, if the Company determines that the financial instruments only have low
credit risk, it is assumed that the credit risk of the financial instruments has not increased significantly
since initial recognition.
The Company assesses expected credit risk and measures expected credit losses on the basis of
individual financial instruments or portfolios of financial instruments. When portfolios of financial
instruments are used as the basis, the Company groups the financial instruments into different
portfolios based on common risk characteristics.
The Company remeasures expected credit losses at each balance sheet date, with the resulting
increases or reversals in the provision for loss recognized as impairment losses or gains in profit or loss.
For financial assets measured at amortized costs, the provision for loss reduces the book value of
these financial assets presented in the balance sheet; for debt investments measured at fair value with
changes recognized in other comprehensive income, the Company recognizes their provision for loss
within other comprehensive income, without reducing the book value of these financial assets.
measured on a portfolio basis
For accounts receivable items such as notes receivable, accounts receivable, other receivables, and
contract assets, if a customer's credit risk characteristics are significantly different from those of other
customers in the portfolio or if the customer's credit risk characteristics have changed significantly, the
Company assesses the provision for bad debts on an individual basis for such receivables. Except for
accounts receivable for which the provision for bad debts is assessed individually, the Company groups
accounts receivable into portfolios based on credit risk characteristics and calculates the provision for
bad debts on a portfolio basis.
Notes receivable, accounts receivable and contract assets
For notes receivable, accounts receivable and contract assets, whether there is a significant financing
component or not, the Company always measures its provision for loss at the amount equivalent to the
expected credit losses during the entire duration.
When the information of expected credit losses of a single financial asset or contract asset cannot be
evaluated at a reasonable cost, the Company divides the notes receivable, accounts receivable and
contract assets into portfolios according to the credit risk characteristics, and calculates the expected
credit losses on the basis of the portfolios. The basis for determining the portfolios is as follows:
A. Notes receivable
? Portfolio 1 of notes receivable: bank acceptance bills
? Portfolio 2 of notes receivable: commercial acceptance bills
B. Accounts receivable
? Portfolio 1 of accounts receivable: government payment portfolio
? Portfolio 2 of accounts receivable: portfolio of transactions with other related parties
? Portfolio 3 of accounts receivable: credit risk characteristic combination
For the accounts receivable divided into portfolios, the Company prepares the comparison table
between the aging of accounts receivable and the rate of expected credit loss throughout the duration
by reference to the experience of historical credit losses, combining with the current situation and the
forecast of future economic conditions, and calculates the expected credit losses. The aging of
accounts receivable is calculated from the date of recognition.
C. Other receivables
The Company classifies other receivables into several portfolios based on credit risk characteristics,
and calculates expected credit losses on the basis of portfolios. The basis for determining portfolios is
as follows:
? Portfolio 1 of other receivables: portfolio of transactions with related parties within the consolidation
scope
? Portfolio 2 of other receivables: interest receivable portfolio
? Portfolio 3 of other receivables: portfolio of transactions with other related parties
? Portfolio 4 of other receivables: credit risk characteristic combination
For other receivables classified as portfolios, the Company calculates the expected credit losses
through the default risk exposure and the rate of expected credit loss throughout the duration or in the
next 12 months. For other receivables classified into portfolios by aging, the aging is calculated from the
date of recognition.
(6) Transfer of financial assets
If the Company has transferred substantially all the risks and rewards of the ownership of the financial
assets to the transferee, the financial assets will be derecognized; if it retains substantially all the risks
and rewards of the ownership of the financial assets, the financial assets will not be derecognized.
If the Company neither transfers nor retains substantially all the risks and rewards of the ownership of
the financial assets, the treatment are as follows: if the Company gives up control of the financial assets,
the derecognition of the financial assets will be carried out with the recognition of the resulting assets
and liabilities; if the Company has not given up control of the financial assets, the relevant financial
assets will be recognized to the extent of its continued involvement in the transferred financial assets,
and the relevant liabilities will be recognized accordingly.
Refer to the relevant notes to the financial statements V. 11 Financial instruments for details.
Refer to the relevant notes to the financial statements V. 11 Financial instruments for details.
Not applicable
Refer to the relevant notes to the financial statements V. 11 Financial instruments for details.
(1) Recognition methods and standards for contract assets
COOEC presents contract assets or contract liabilities in the balance sheet based on the relationship
between its performance of fulfillment obligations and customer payments. The consideration (except
accounts receivable) that the Company is entitled to receive for the transfer of goods or provision of
services to customers is presented as contract assets.
(2) Determination methods and accounting treatments of expected credit losses of contract assets
For contract assets that do not contain any significant financing component (including the financing
component in contracts with a term of less than one year that is not considered under the Standards) as
stipulated in Accounting Standards for Business Enterprises No. 14 - Revenue, the Company adopts a
simplified model of expected credit losses, that is, the provision for loss is always measured according
to the amount of expected credit losses over the life of the instruments, and the resulting increase or
reversal of provision for loss is included in the current profit or loss as impairment losses or gains.
For contract assets that contain significant financing components, the Company chooses to use the
simplified model of expected credit losses, that is, the provision for loss is always measured according
to the amount of expected credit losses over the life of the instruments.
(1) Classification of inventories
Inventories include development land, development products, development products intended for sale
but temporarily leased, transitional housing, inventory materials, inventory equipment and low-value
consumables held for sale or consumption in the development and operation process, as well as
development costs in the development process.
(2) Pricing method of inventories dispatched
costs of the project according to the floor area occupied by the development products.
evenly over the expected service life of the Company's similar fixed assets.
the completion of the public supporting facilities, the public supporting facilities fee shall be allocated to
the development costs of the relevant development project according to the floor area of the relevant
development project; if the public supporting facilities are completed later than the relevant
development products, the public supporting facilities fee shall be accrued by the relevant development
products first, and the cost of the relevant development products shall be adjusted according to the
difference between the actual amount and the accrued amount after the completion of the common
facilities.
(3) Determination basis of net realizable value of inventories
On the balance sheet date, the inventories are measured at the lower of cost or net realizable value,
and the provision for inventory depreciation is made at the difference where the cost of a single
inventory is higher than the net realizable value. For the inventories that are directly used for sale, the
net net realizable value is determined by the estimated selling price of the inventories minus the
estimated selling and distribution expenses and related taxes during the normal production and
operation process; for the inventories that need to be processed, their net realizable net realizable
value is determined in the normal course of production and operation by the estimated selling price of
the finished finished products minus the estimated costs to be incurred upon completion, estimated
selling and distribution expenses and related taxes; on the balance sheet date, if part of the same
inventory has a contract price and other parts do not have a contract price, its net realizable value shall
be determined respectively and compared with its corresponding cost to determine the provision or
reversal of provision for inventory depreciation amount.
(4) Inventory system of inventories
The inventory system of inventories is the perpetual inventory system.
(5) Amortization method of low-value consumables and packaging materials
They are amortized with the one-off write-off method.
They are amortized with the one-off write-off method.
(1) Recognition criteria and accounting treatments of non-current assets held for sale or disposal
groups
The Company classifies non-current assets or disposal groups that meet the following conditions into
the category of held for sale: 1) According to the practice of selling such assets or disposal groups in
similar transactions, they can be sold immediately under the current situation; 2) The sale is very likely
to occur, a resolution has been made on a sale plan and a firm purchase commitment has been
obtained, and the sale is expected to be completed within one year. Approval from relevant authorities
or regulatory authorities has been obtained in accordance with relevant regulations. If the Company
loses the right of control of its subsidiary due to reasons such as the sale of its investment in the
subsidiary, regardless of whether the enterprise retains part of the equity investment after the sale, the
entire investment in the subsidiary shall be classified as held for sale in the parent company's individual
financial statements, and all assets and liabilities of the subsidiary shall be classified as held for sale in
the consolidated financial statements when the investment in the subsidiary to be sold meets the
conditions for the classification as held for sale.
The Company adjusts the estimated net residual value of the assets held for sale to the net amount
reflecting its fair value less selling expenses (but not more than the original book value of the assets
held for sale). The difference between the original book value and the adjusted estimated net residual
value is included in the current profit or loss as asset impairment loss, and the provision for impairment
of assets held for sale is made at the same time. For the amount of asset impairment loss recognized
by the disposal group held for sale, the book value of the goodwill in the disposal group shall be
deducted first, and then the ratio of the book value of each non-current asset in the disposal group
measured in accordance with the applicable standards shall be deducted in proportion to its book value.
If the net amount of the fair value of the disposal group held for sale minus sales expenses increases
on subsequent balance sheet dates, the previously written-down amount shall be restored, and
reversed within the asset impairment loss of non-current assets recognized under the measurement
provisions of this standard after being classified as held for sale. The reversed amount shall be included
in the current profit or loss. The goodwill book value that has been offset and the asset impairment loss
recognized before the non-current assets subject to the measurement provisions of the relevant
standards are classified as held for sale shall not be reversed. The subsequent reversal amount of the
asset impairment loss recognized for the disposal group held for sale shall be increased in proportion to
its book value according to the ratio of the book value of each non-current asset in the disposal group
that is subject to the measurement provisions of the relevant standards except for goodwill.
No depreciation or amortization are made for the non-current assets held for sale and the assets in the
disposal group held for sale; interest and other expenses on liabilities in the disposal group held for sale
continue to be recognized. For all or part of the investment in associates or joint ventures classified as
held for sale, accounting by equity method shall cease for the part classified as held for sale, and
accounting by equity method shall continue for the retained part (not classified as held for sale); the use
of the equity method shall cease when the Company loses significant influence over the associates and
joint ventures as a result of the sale.
If a non-current asset or disposal group is classified as held for sale, but later no longer meets the
classification conditions for held for sale, the Company shall stop classifying it as held for sale and
measure it at the lower of the following two amounts:
held for sale for depreciation, amortization or impairment that would have been recognized if it had not
been classified as held for sale;
(2) Identification criteria of discontinued operations
Discontinued operations refer to the component that can be separately distinguished and has been
disposed of by the Company or classified by the Company as held for sale that meets one of the
following conditions:
business or a sole major business area; or
(3) Presentation
The Company presents the non-current assets held for sale or the assets in the disposal group held for
sale in the balance sheet under the "assets held for sale", and the liabilities in the disposal group held
for sale under the "liabilities held for sale".
The Company presents the profit or loss of continuing operations and the profit or loss of discontinued
operations in the income statement separately. For non-current assets or disposal group held for sale
that do not meet the definition of discontinued operations, their impairment losses, reversal amounts
and disposal profit or loss are presented as profit or loss from continuing operations. The impairment
loss from discontinued operation, reversed amount and other profit or loss from operation as well as
profit or loss from disposal shall be presented as profit or loss from discontinued operation.
A disposal group that is intended to be discontinued rather than sold and meets the conditions of the
relevant components in the definition of discontinued operations is presented as discontinued
operations from the date of the discontinuance of its use.
For the discontinued operations presented in the current period, the information originally presented as
the profit or loss of continuing operations is re-presented as the profit or loss of the discontinued
operations in the comparable accounting period in the current financial statements. If the discontinued
operations no longer meet the conditions for classification as held for sale, the information originally
presented as profit or loss from discontinued operations is re-presented as the profit or loss from
continuing operations in the comparable accounting period in the current financial statements.
Not applicable
Not applicable
Refer to the relevant notes to the financial statements V. 11 Financial instruments for details.
(1) Common control and judgment of significant influence
If there is a shared control over an arrangement in accordance with relevant agreements, and the
relevant activities of the arrangement must be decided with the unanimous consent of the participants
sharing the right of control, it is recognized as common control. For determining whether there is a
common control, it is firstly to determine whether all participants or a combination of participants
collectively control the arrangement, and then determine whether the decision on the activities related
to the arrangement must be unanimously agreed by the participants who collectively control the
arrangement. If all participants or a group of participants must act in concert to decide on the relevant
activities of an arrangement, all participants or a group of participants are considered to collectively
control the arrangement; if there are two or more combinations of participants that can collectively
control an arrangement, it does not constitute a common control. The protective rights enjoyed are not
taken into account in determining whether there is a common control.
Significant influence is recognized when there is the power to participate in the making decisions on the
investees' financial and operating policies, but no power to control or exercise common control with
other parties over the formulation of such policies. When it is determined whether the investor can
exercise significant influence on the investees, the impact of the investor's direct or indirect holding of
the investees' voting shares and the current executable potential voting rights held by the investor and
other parties after assumed conversion to investees' equity shall be taken into consideration, including
the impact of the current convertible warrants, share options and convertible corporate bonds issued by
the investees.
When the Company directly or indirectly owns more than 20% (including 20%) but less than 50% of the
voting rights of the investees through its subsidiary, it is generally considered to have a significant
influence on the investees, unless there is clear evidence that it cannot participate in the production and
operation decision-making of the investees under such circumstances, which means no significant
influence; when the Company owns less than 20% (exclusive) of the shares of voting rights of the
investees, it is generally not considered to have significant influence on the investees, unless there is
clear evidence that it can participate in the production and operation decision-making of the investees
and in such case it has a significant influence.
(2) Determination of initial investment costs
common control takes the payment of cash, transfer of non-cash assets, assumption of debts or
issuance of equity securities as the consideration for the combination, the share of of the book value of
the owners' equity of the combining party in the consolidated financial statements of the ultimate
controller shall be taken as its initial investment cost on the combination date. The capital reserve
(capital premium or equity premium) is adjusted for the difference between the initial investment cost of
the long-term equity investments and the book value of the consideration paid for the combination or
the total face value of the shares issued; if the capital reserve is insufficient, the difference is adjusted
against retained earnings.
For long-term equity investments realized step by step by business combination under the same control,
the book owners' equity share of the combined party on the combination date calculated by the
shareholding ratio shall be taken as the initial investment cost of the investment. The capital reserve
(capital premium or equity premium) shall be adjusted according to difference between the initial
investment cost and the sum of the book value of the original long-term equity investments plus the
book value of the newly paid consideration for further shares acquired on the combination date; if the
capital reserve is insufficient to be offset, retained earnings shall be offset.
value of the combination consideration paid on the acquisition date shall be used as the initial
investment cost.
cash, the actual purchase price paid shall be taken as its initial investment cost; if it is obtained by
issuing equity securities, fair value of equity securities issued will be used as its initial investment cost; if
an investor invests, the value stipulated in the investment contract or agreement shall be used as its
initial investment cost (except if the value stipulated in the contract or agreement is unfair).
(3) Subsequent measurements and recognition of profit or loss
Long-term equity investments in which the Company can control the investees shall be accounted for
by cost method in the individual financial statements of the Company; long-term equity investments with
common control or significant influence adopt the accounting by equity method.
When the cost method is adopted, the long-term equity investments are priced at the initial investment
cost. Except for the actual price paid when the investment is obtained or the cash dividends or profits
included in the consideration that have been declared but not yet distributed, the entitled cash dividends
or profits declared by the investees are recognized as current investment income, and whether the
long-term investment is impaired is considered according to the relevant asset impairment policy at the
same time.
When the equity method is adopted, if the initial investment cost of the long-term equity investments is
greater than the fair value share of net identifiable assets of the investees that the investor is entitled to
at the time of investment, it shall be included in the initial investment cost of the long-term equity
investments; if the initial investment cost of the long-term equity investments is less than the fair value
share of net identifiable assets of the investees that the investor is entitled to at the time of investment,
the difference shall be included in the current profit or loss, and the cost of the long-term equity
investments shall be adjusted at the same time.
When the equity method is adopted, after the long-term equity investments are obtained, the
investment profit or loss and other comprehensive income shall be recognized according to the share of
net profit or loss and other comprehensive income realized by the investees that should be enjoyed or
shared, and the book value of the long-term equity investments shall be adjusted. When the share of
net profit or loss of the investees is recognized, the net profit of the investees shall be adjusted and
recognized on the basis of the fair value of the identifiable assets of the investees at the time of
acquisition of the investment, in accordance with the accounting policies and accounting period of the
Company, and offsetting the portion of internal transaction profit or loss between associates and joint
ventures that belong to the investing enterprise according to the shareholding ratio (but if the internal
transaction loss is an asset impairment loss, it shall be recognized in full). The book value of the long-
term equity investments shall be reduced according to the part to be distributed calculated according to
the profits or cash dividends declared to be distributed by the investees. The Company recognizes the
net loss incurred by the investees to the extent that the book value of the long-term equity investments
and other long-term interests that substantially constitute the net investment in the investees are
reduced to zero, except that the Company is obliged to bear additional losses. For other changes in
owners' equity of the investees other than net profit or loss, the book value of the long-term equity
investments are adjusted and included in the owners' equity.
If the Company can have significant influence on or exercise common control over the investees due to
additional investment or other reasons, but does not constitute control, the sum of the fair value of the
original equity plus the newly increased investment cost shall be taken as the initial investment cost
with the accounting by equity method on the conversion date. If the original equity is classified as non-
trading equity instrument investment measured at fair value with changes recognized in other
comprehensive income, the accumulated fair value changes related to it originally included in other
comprehensive income shall be transferred to retained earnings when changed to accounting by equity
method.
Where the common control or significant influence on the investees is lost due to the disposal of part of
the equity investments or other reasons, the remaining equity after disposal shall be accounted for in
accordance with Accounting Standards for Business Enterprises No. 22 - Recognition and
Measurement of Financial Instruments on the date of loss of common control or significant influence,
and the difference between the fair value and the book value shall be included in the current profit or
loss. For the other comprehensive income of the original equity investments recognized by adopting the
accounting by equity method, the accounting treatment shall be made on the same basis for the direct
disposal of the relevant assets or liabilities by the investees when the accounting by equity method is
terminated. other changes in owners' equity related to the original equity investments are transferred to
the current profit or loss.
If the control over the investees is lost due to the disposal of part of the equity investments or other
reasons, and the remaining equity after disposal can exercise common control or significant influence
on the investees, the accounting by equity method shall be adopted, and the remaining equity shall be
adjusted as if the accounting by equity method is adopted from the time of acquisition; if the remaining
equity after disposal cannot exercise common control or significant influence on the investees, it shall
be accounted for in accordance with the relevant provisions of Accounting Standards for Business
Enterprises No. 22 - Recognition and Measurement of Financial Instruments, and the difference
between its fair value and book value on the date of loss of control shall be included in the current profit
or loss.
If the Company's shareholding ratio decreases due to the capital increase of other investors, resulting in
the loss of control but with the ability to implement common control or exert significant influence over
the investees, the Company's share of the investees' increase in net assets due to capital increase and
share expansion shall be recognized according to the new shareholding ratio, and the difference
between the original book value of the long-term equity investments corresponding to the decrease in
the shareholding ratio that should be carried forward shall be included in the current profit or loss; then,
adjustments shall be made as if the accounting by equity method had been applied from the date of
investment acquisition according to the new shareholding ratio.
(4) Impairment test methods and methods for provision for impairment
For investments in subsidiaries, associates and joint ventures, please refer to the relevant notes to the
financial statements V. 28 Impairment of long-term assets for the method of asset impairment.
Measurement mode of investment properties
Measurement by cost method
Depreciation and amortization methods
(1) Investment properties include leased land use right, land use right held for transfer upon
appreciation and leased buildings.
(2) The investment properties are initially measured at cost, subsequent measurement is made by
using the cost model, and depreciation or amortization is provided by using the same method as that for
fixed assets and intangible assets. On the balance sheet date, if there is any sign that the investment
properties are impaired, the corresponding provision for impairment shall be made according to the
difference between the book value and the recoverable amount. The difference between the disposal
proceeds of an investment property (through sale, transfer, retirement, or damage) and its book value,
net of related taxes and fees, is recognized in current profit or loss.
(1) Recognition conditions
Fixed assets refer to tangible assets held for the production of goods, provision of labor services,
leasing or operation and management, and with a service life of more than one accounting year. Fixed
assets are recognized only when the economic benefits associated with them are likely to flow into the
enterprise and their costs can be measured reliably. Fixed assets are initially measured at the actual
cost at the time of acquisition. Subsequent expenses related to fixed assets are included in the cost of
fixed assets when the economic benefits related to them are likely to flow into the Company and their
cost can be measured reliably; the daily repair costs of fixed assets that do not meet the conditions for
capitalization of subsequent expenses of fixed assets are included in the current profit or loss or in the
cost of related assets according to the beneficiary object when incurred. For the replaced part, its book
value is derecognized.
(2) Depreciation method
Annual depreciation
Type Depreciation method Depreciation life Residual value rate
rate
Buildings and
Straight-line method 20-25 5-10 3.6-4.75
constructions
Means of
Straight-line method 5 5 19
transportation
Other equipment Straight-line method 5 5 19
Machinery equipment Straight-line method 5 5 19
Renovation of fixed
Straight-line method 5 - 20
assets
The Company's fixed assets are depreciated by straight-line method. The provision for depreciation of
fixed assets commences from the month following the date they reach the working condition for
intended use and ceases when they are derecognized or classified as non-current assets held-for-sale.
Without considering the provision for impairment, the Company determines the annual depreciation rate
of each type of fixed assets by category, estimated service life and estimated residual value of the fixed
assets as above.
Among them, the depreciation rate for the fixed assets with provision for impairment already made shall
be calculated and determined by deducting the accumulated amount of provision for asset impairment.
Not applicable
(1) Recognition principles of capitalization of borrowing costs
If borrowing costs incurred by the Company can be directly attributed to the acquisition, construction or
production of assets eligible for capitalization, they shall be capitalized and included in the cost of the
related assets; other borrowing costs are recognized as expenses when incurred and included in the
current profit or loss.
(2) Capitalization period of borrowing costs
simultaneously met: ① the asset expenditure has been occurred; ② the borrowing costs have been
occurred; ③ the acquisition, construction or production activities that are necessary to prepare the
assets for their intended use or sale have begun.
construction or production process, and the interruption lasts for more than 3 months, the capitalization
of borrowing costs will be suspended; the borrowing costs incurred during the interruption period are
recognized as expenses and included in the current profit or loss until the acquisition, construction or
production of the asset restarts.
(3) When the assets purchased, constructed or produced that meet the capitalization conditions reach
the intended usable or salable state, the capitalization borrowing costs will cease.
(3) Rate and amount of capitalization of borrowing costs
If a special loan is borrowed for the purpose of purchasing, constructing or producing assets that meet
the capitalization conditions, interest expenses actually incurred on the special loan in the current
period (including the amortization of discounts or premiums determined according to effective interest
method), minus the unused borrowed funds The amount of interest that should be capitalized is
determined based on the amount of interest income earned from depositing in a bank or investment
income earned from temporary investments; where general borrowings are used for acquiring and
constructing or producing assets eligible for capitalization, the expenses of general borrowings to be
capitalized should be calculated by multiplying the weighted average of asset disbursements of the part
of accumulated asset disbursements exceeding special borrowings by the capitalization rate of used
general borrowings. The capitalization rate is calculated and recognized as per the weighted average
interest rate of general borrowing.
(1) Service life and basis for determination, estimates, amortization method or review procedure
the service life is analyzed and judged when the intangible assets are obtained.
service life according to the expected realization method of the economic benefits related to the
intangible assets. If the expected realization method cannot be reliably determined, straight-line method
shall be adopted for amortization. The specific periods are as follows:
Item Amortization period (years)
Land use rights Statutory use period of land use right
Right of use of software 5
Intangible assets with uncertain service life are not amortized, and the Company reviews the service life
of such intangible assets in each accounting period. If different from the previous estimate, the original
estimate is adjusted and treated as changes in accounting estimates.
to the financial statements V. 30 Impairment of long-term assets for details.
(2) Scope of R&D expenditures and related accounting treatments
The Company classifies all expenses directly related to the R&D activities as R&D expenditures,
including employee compensation of R&D personnel, material input costs, depreciation costs and
amortization expenses.
Expenditures in the research stage of internal research and development projects are included in the
current profit or loss when incurred. Expenditures in the development phase of internal research and
development projects are recognized as intangible assets if the following conditions are met: ① it is
technically feasible to complete the intangible assets so that they can be used or sold; ② there is an
intention to complete the intangible assets and use or sell them; ③ the means of generating economic
benefits by intangible assets, including being able to prove that there is a market for the products
produced by applying the intangible assets or the intangible assets having their own market, and
intangible assets to be used internally, being able to prove their usefulness; ④ It is able to finish the
development of the intangible assets and able to use or sell the intangible assets, with the support of
sufficient technologies, financial resources and other resources; ⑤ The expenditure attributable to the
intangible asset during its development phase can be measured reliably.
For long-term equity investments, investment properties measured by the cost model, fixed assets,
construction in progress, right-of-use assets, intangible assets with limited service life, goodwill and
other long-term assets, the Company shall, on the balance sheet date, make a judgment on whether
there is any indication that the assets may have impairment. For goodwill and intangible assets with
uncertain service life arising from business combination, the impairment test shall be conducted every
year regardless of whether there are any indications of impairment. The impairment test shall be carried
out for goodwill in combination with the asset group or combination of asset groups related to it.
If there are any of the following signs, it indicates that the asset may have impairment:
(1) The market value of the asset has fallen sharply in the current period, and the decline is obviously
higher than the expected decline due to the passage of time or normal use; (2) the economic, technical
or legal environment in which the enterprise operates and the market where the assets are located
have undergone or will undergo significant changes in the current period or in the near future, which will
adversely affect the enterprise; (3) the market interest rate or the rate of return on investment in other
markets has increased in the current period, thus affecting the discount rate of the enterprise in
calculating the present value of the expected future cash flows of the asset, resulting in a significant
reduction in the recoverable amount of the asset; (4) there is evidence showing that the asset is
obsolete or its substance has been damaged; (5) the asset has been or will be idle, terminated for use
or planned to be disposed ahead of schedule; (6) evidence from the internal reports of the enterprise
shows that the economic performance of the asset has been or will be lower than expected, such as the
net cash flows or operating profit (or loss) generated by the asset is far lower (or higher) than the
estimated amount; (7) other indications that the asset may have impairment.
Where there is any indication of impairment of assets, the recoverable amount shall be estimated. If the
measurement results of recoverable amount indicate that the recoverable amount of the asset is lower
than its book value, the book value of the asset shall be written down to the recoverable amount, and
the amount written down shall be recognized as the asset impairment loss and included in the current
profit or loss, and the corresponding provision for asset impairment shall be made at the same time.
The asset impairment loss will not be reversed in subsequent accounting periods once recognized.
For impairment test of goodwill, the book value of goodwill arising from business combination shall be
amortized to the relevant asset group according to a reasonable method form the acquisition date;
where it is difficult to be allocated to the relevant assets group, it shall be allocated to the relevant
portfolio of asset groups. The relevant asset group or portfolio of asset groups is the asset group or
portfolio of asset groups that can benefit from the synergy of the business combination and is not larger
than the reporting segment determined by the Company.
When conducting the impairment test, if there is any indication of impairment in the asset group or
profile of asset groups related to goodwill, the impairment test shall be conducted first for the asset
group or profile of asset groups excluding goodwill, the recoverable amount shall be calculated, and the
corresponding impairment losses shall be recognized. Then, the impairment test shall be conducted for
the asset group or profile of asset groups containing goodwill, and the book value and recoverable
amount shall be compared. If the recoverable amount is lower than the book value, the impairment
losses of goodwill shall be recognized.
Long-term deferred expenses refer to various expenses that have already occurred but should be borne
by the current period and future periods with an amortization period of over 1 year (excluding 1 year).
Long-term deferred expenses are recorded at the actual amount incurred and are amortized evenly
over the expected benefit period. If a long-term deferred expense item cannot benefit future accounting
periods, all the amortized value of the item that has not yet been amortized will be fully transferred to
the current profit or loss.
COOEC presents contract assets or contract liabilities in the balance sheet based on the relationship
between its performance of fulfillment obligations and customer payments. The Company's obligation to
transfer goods or provide services to customers for consideration received or receivable is presented as
contract liabilities.
(1) Accounting treatments of short-term compensation
During the accounting period when employees provide services for the Company, the short-term
compensation actually incurred is recognized as a liability and included in the current profit or loss or
related asset costs.
(2) Accounting treatments of post-employment benefits
Post-employment benefits are divided into defined contribution plans and defined benefit plans.
payable calculated according to the defined contribution plans is recognized as a liability and included
in the current profit or loss or related asset costs.
① According to the expected cumulative benefit unit method, unbiased and mutually consistent
actuarial assumptions are used to estimate relevant demographic variables and financial variables,
measure the obligations arising from the defined benefit plans, and determine the period to which the
relevant obligations belong. At the same time, the obligations arising from the defined benefit plans
shall be discounted to determine the present value of the defined benefit plan obligations benefit plans
and the current service cost;
② If there are assets under the defined benefit plans, the deficit or surplus resulting from the present
value of the defined benefit plan obligations less the fair value of the defined benefit plan assets is
recognized as a net liability or net asset under defined benefit plans. If there is a surplus under the
defined benefit plans, the net assets of the defined benefit plans shall be measured at the lower of the
surplus or asset ceiling of the defined benefit plans;
③ At the end of the period, the employee compensation costs arising from the defined benefit plans are
recognized as service costs, net interest on net liabilities or net assets under defined benefit plans, and
changes arising from the re-measurement of net liabilities or net assets under defined benefit plans.
The service costs and net interest on net liabilities or net assets under defined benefit plans are
included in the current profit or loss or related asset costs, and the changes arising from the re-
measurement of net liabilities or net assets under defined benefit plans are included in other
comprehensive income, and are not allowed to be reversed to profit or loss in subsequent accounting
periods, but the amount recognized in other comprehensive income can be transferred within the scope
of equity.
(3) Accounting treatments of dismissal benefits
For dismissal benefits provided to employees, employee compensation liabilities arising from dismissal
benefits are recognized at the earlier of the following dates and included in the current profit or loss: 1)
when the Company cannot unilaterally withdraw the dismissal benefits provided due to the termination
of labor relations plan or layoff proposal; 2) when the Company recognizes the costs or expenses
related to the restructuring involving the payment of dismissal benefits.
(4) Accounting treatments of other long-term employee benefits
If other long-term benefits provided to employees meet the conditions of defined contribution plans,
they shall be accounted for in accordance with the relevant provisions of defined contribution plans;
other long-term benefits shall be accounted for in accordance with the relevant provisions of the defined
benefit plans. In order to simplify the relevant accounting treatment, the employee compensation costs
arising therefrom shall be recognized as the total net amount of service costs, net liabilities or net
assets of other long-term employee benefits, and changes arising from the re-measurement of net
liabilities or net assets of other long-term employee benefits, and shall be included in the current profit
or loss or related asset costs.
(1) When an obligation related to the contingency become the present obligation of the Company and
the performance of such obligation is likely to result in an outflow of economic benefits from the
Company, and the amount of such obligation can be measured reliably, the Company recognizes it as
estimated liabilities.
(2) The Company conducts the initial measurement of the estimated liabilities according to the best
estimate of the expenses required for the performance of the relevant present obligations, and
comprehensively considers the risks, uncertainties, time value of money and other factors related to
contingencies. If the impact of the time value of money is significant, the best estimate shall be
determined by discounting the relevant future cash flows. The Company reviews the book value of the
estimated liabilities on the balance sheet date and adjusts the book value to reflect the current best
estimate.
Not applicable
Not applicable
Accounting policies adopted for revenue recognition and measurement disclosed by business type
(1) Recognition of revenue
The Company's revenue mainly includes real estate sales revenue, property management revenue,
software sales revenue, rental property revenue, etc.
The Company recognizes revenue when it fulfills its performance obligations in the contract, that is, the
revenue is recognized when the customer obtains the right of control over relevant goods. Obtaining
right of control over relevant goods means being able to direct the use of the goods and obtain almost
all economic benefits from them.
(2) The Company determines that the nature of the relevant revenue obligations is "performance
obligations performed within a certain period of time" or "performance obligations performed at a certain
time point " based on the relevant provisions of the revenue standards, and recognizes revenue in
accordance with the following principles.
obligations within a certain period of time:
① The customer obtains and consumes the economic benefits brought by the Company's performance
at the same time as the Company performs the contract.
② The customer can control over the assets under construction during the Company's performance.
③ The assets produced during the performance of the Company have irreplaceable uses, and the
Company is entitled to collect payments for the accumulated performance completed to date throughout
the contract period.
For performance obligations performed within a certain period, the Company will recognize the revenue
based on the performance progress during that period of time, except where the performance progress
cannot be reasonably determined. Considering the nature of the goods, the Company determines the
appropriate performance progress by the output method or the input method
at a certain time point, the Company recognizes revenue at the time point when the customer obtains
the control over relevant goods.
When determining whether a customer has obtained control over goods, the Company considers the
following indications:
① The Company has the current right to receive the payment for the goods, that is, the customer has
the current obligation to pay for the goods.
② The Company has transferred the legal ownership of the goods to the customer, that is, the
customer possess the legal ownership of the goods.
③ The Company has physically transferred the goods to the customer, that is, the customer has
physically taken possession of the goods.
④ The Company has transferred the significant risks and rewards of ownership of the goods to the
customer, that is, the customer has obtained the significant risks and rewards of ownership of the
goods.
⑤ The customer has accepted the goods.
⑥ Other indications showing that the customer has obtained control over goods.
(3) Specific policies for the Company's revenue recognition
When the development product has been completed and accepted, the sales contract has been signed
and the obligations stipulated in the contract have been fulfilled, as well as the main risks and rewards
of the ownership of the development product have been met at the same time, the Company no longer
retains the continuing management rights usually associated with the ownership and effective control of
the sold development product, the amount of revenue can be measured reliably, the relevant economic
benefits are likely to flow in, and the relevant costs incurred or to be incurred can be measured reliably,
the realization of sales revenue is recognized. If the real estate construction has been accepted (with
the completion acceptance report obtained), an irreversible sales contract has been signed, and the
buyer's payment certificate has been obtained (down payment and bank mortgage received in full if
bank mortgage is involved; otherwise, full housing payment received), the revenue is recognized at the
earlier of the delivery date specified in the delivery notice (delivery is deemed completed if the
formalities are not completed within the specified time limit due to the owner's reasons) and the actual
time of taking over by the owner.
For property management services provided by the Company, revenue is recognized according to the
progress of property services provided.
Revenue is recognized in accordance with the leasing standards. The Company recognizes the
revenue on a straight-line basis or other reasonable methods over the lease term as stipulated in the
lease contract.
① Recognition and measurement method for sales revenue from customized software and independent
software products
Customized software refers to the software specially designed developed according to the actual needs
of the user based on a thorough field investigation of the user's business, in accordance with the
software development contract signed with the customer. Such software is not universal. Only when the
goods produced by the Company in the performance process have irreplaceable uses, and the
Company has the right to receive payments for the accumulated performance completed so far during
the entire contract period, the revenue will be recognized over a period of time according to the
progress of the completed performance obligations during the contract period. The progress of the
completed performance obligations shall be determined according to the ratio of the actual contract
costs incurred to complete the performance obligations to the estimated total cost of the contract.
Otherwise, the revenue is recognized when the customer obtains the right of control over the relevant
product.
If a sales contract is signed on independent software products between the Company and the customer,
and the customer directly purchases the standard version of the software, that is, the real estate and
facility management platform. The implementation personnel deploy the corresponding module
according to the customer's needs, which is a performance obligation to be performed at a certain time
point. The Company will recognize the revenue after delivery of the product and the customer has
accepted the product.
② Recognition and measurement method for revenue from system integration contract
System integration includes the sales and installation of purchased goods and software products. the
system has been installed and debugged and has been put into trial operation or the preliminary
inspection report of the purchaser has been obtained; the economic benefits associated with the
transaction can flow into the enterprise; the revenue is recognized when the relevant revenue and costs
can be measured reliably.
③ Recognition and measurement method of technical service revenue
Technical service mainly refers to the business of providing consulting, implementation and after-sales
service of products to customers according to contract requirements. If the service period is agreed in
the contract, it shall be regarded as the performance obligations to be performed within a certain period
of time. During the service provision period, the revenue shall be recognized according to the service
period agreed in the contract and the service settled with the customer.
that is, when the customer obtains the relevant control over goods, according to the relevant contracts
or agreements.
(4) Measurement of revenue
The Company shall measure revenue based on the transaction price allocated to each individual
performance obligation. When determining the transaction prices, the Company considers the impact of
factors such as variable consideration, significant financing components in the contract, non-cash
consideration, and consideration payable to customers.
The Company determines the best estimate of a variable consideration based on the expected value or
the most likely amount, but the transaction prices containing a variable consideration shall not exceed
the amount of accumulated recognized revenue that is highly unlikely to be significantly reversed when
the relevant uncertainty is eliminated. When an enterprise evaluates whether a major reversal of
accumulated recognized revenue is very unlikely to occur, it should also consider the possibility and
proportion of revenue reversal.
If there is a significant financing component in the contract, the Company shall determine the
transaction prices according to the payable amount that is assumed to be paid in cash by the customer
when the customer obtains the right of control over goods. The difference between the transaction price
and the contract consideration shall be amortized using effective interest method during the contract
period.
If the customer pays non-cash consideration, the Company shall determine the transaction price
according to the fair value of the non-cash consideration. If the fair value of the non-cash consideration
cannot be reasonably estimated, the Company determines the transaction prices indirectly by referring
to the stand-alone selling prices it promises for transferring the goods to the customer.
For consideration payable to customers, the consideration payable should be offset against the
transaction prices, and should offset the current revenue at the later of the recognition of relevant
revenue and the payment (or commitment to pay) of the customer consideration, except for the
consideration payable to customers for obtaining other clearly distinguishable goods from customers.
Where the consideration payable to a customer is for the purpose of obtaining other clearly
distinguishable goods from the customer, the purchased goods shall be recognized in a manner
consistent with other purchases by the Company. If the consideration payable by an enterprise to a
customer exceeds the fair value of clearly distinguishable goods obtained from the customer, the
excess amount shall be offset against the transaction prices. If the fair value of clearly distinguishable
goods obtained from customers cannot be reasonably estimated, the enterprise shall offset the full
amount of the consideration payable to customers against the transaction prices.
Different revenue recognition methods and measurement methods involved in the use of different
business models for similar business
Contract costs are divided into contract performance costs and contract acquisition costs.
If the cost incurred by the Company to perform the contract meet the following conditions at the same
time, it shall be recognized as an asset as the contract performance cost:
(1) The cost is directly related to a current contract or an expected contract to be obtained, including
direct labor, direct materials, manufacturing overhead (or similar expenses), costs expressly borne by
the customer, and other costs incurred solely due to the contract;
(2) The cost increases the resources that the enterprise will use to fulfill its performance obligations in
the future;
(3) Such cost is expected to be recovered.
If the incremental costs incurred by the Company to obtain the contract are expected to be recovered,
the incremental costs shall be recognized as an asset as the contract acquisition cost ; however, if the
asset amortization period does not exceed one year, it can be included in the current profit or loss when
it occurs.
Assets related to the contract costs are amortized on the same basis as the recognition of the revenue
of the goods or services related to the asset.
If the book value of the assets related to the contract costs is higher than the difference between the
following two items, the Company will make provision for impairment for the excess and recognize it as
asset impairment loss:
(1) The remaining consideration expected to be obtained by the transfer of goods or services related to
the assets;
(2) The estimated cost to be incurred for the transfer of the relevant goods or services.
If the above provision for asset impairment is subsequently reversed, the book value of the asset after
the reversal shall not exceed the book value of the asset on the reversal date under the assumption
that no provision for impairment is made.
(1) Government subsidies are recognized when the following conditions are met at the same time: 1)
the Company can meet the conditions attached to the government subsidies; 2) the Company can
receive government subsidies. The government subsidies considered as monetary assets are
measured at the amount received or receivable. If government subsidies are non-monetary assets, they
shall be measured at fair value; if the fair value cannot be obtained reliably, it shall be measured at the
nominal amount.
(2) Judgment basis and accounting treatments of asset-related government subsidies
Government subsidies used for the acquisition, construction or otherwise forming long-term assets as
specified in government documents shall be classified as asset-related government subsidies. If there
is no relevant clear stipulation in the government document, the judgment shall be made on the basis of
the basic conditions that must be met to obtain the subsidy, and if the basic condition is forming long-
term assets through purchase, construction or other means, it shall be deemed as asset-related
government subsidies. Asset-related government subsidies shall be used to offset the book value of
relevant assets or recognized as deferred income. If the asset-related government subsidies are
recognized as deferred income, they shall be included in the profit or loss by stages in a reasonable
and systematic manner within the service life of the relevant assets. Government subsidies measured
according to the nominal amount are directly included in current profit or loss. If the relevant assets are
sold, transferred, scrapped or damaged before the end of their service life, the undistributed balance of
relevant deferred income will be transferred to the profit or loss of the current period of asset disposal.
(3) Judgment basis and accounting treatments of income-related government subsidies
Government subsidies other than those related to assets shall be classified as income-related
government subsidies. For government subsidies that contain both asset-related parts and income-
related parts, if it is difficult to distinguish whether they are asset-related or income-related, they will be
classified as income-related government subsidies as a whole. Income-related government subsidies
used to compensate for relevant costs or losses in subsequent periods, shall be recognized as deferred
income, and shall be included in the current profit or loss or used to offset relevant costs during the
period when relevant costs or losses are recognized; if they are used to compensate the relevant costs
or losses incurred, they shall be directly included in the current profit or loss or used to offset the
relevant costs.
(4) Government subsidies related to the daily operating activities of the Company shall be included in
other income or offset against relevant costs according to the essence of economic business.
Government subsidies unrelated to the daily activities of the Company shall be included in the non-
operating income or expenditure. For recognized government subsidies to be returned, if the book
value of the relevant assets is offset at initial recognition, the book value of the assets shall be adjusted;
if there is a relevant deferred income balance, the book balance of the relevant deferred income shall
be offset, and the excess shall be included in the current profit or loss; if it falls under other
circumstances, it shall be directly included in the current profit or loss.
(1) According to the temporary differences between the book value of assets and liabilities and their tax
bases (if the tax base of items not recognized as assets and liabilities can be determined in accordance
with tax laws, the difference between the tax base and the book value), the deferred tax assets or
deferred tax liabilities are calculated and recognized according to the applicable tax rate during the
period when the assets are expected to be recovered or the liabilities are settled.
(2) Deferred tax assets are recognized to the extent of the taxable income that is likely to be obtained to
offset the deductible temporary differences, unless the deductible temporary differences arise from the
following transactions:
or taxable income (or deductible losses) when it occurs;
associates, the corresponding deferred tax assets shall be recognized if the following conditions are
met at the same time: the temporary differences are likely to be reversed in the foreseeable future, and
the taxable income used to offset the deductible temporary differences is likely to be obtained in the
future.
On the balance sheet date, if there is conclusive evidence indicating that sufficient taxable income is
likely to be obtained in the future period to offset the deductible temporary differences, deferred tax
assets that have not been recognized in previous accounting periods is recognized.
(3) All taxable temporary differences are recognized as relevant deferred tax liabilities, except for
taxable temporary differences arising in the following transactions:
The initial recognition of goodwill, or the initial recognition of assets or liabilities arising from
transactions with the following characteristics: the transaction is not a business combination, and the
transaction does not affect accounting profit or taxable income (or deductible losses) when it occurs.
Taxable temporary differences related to investments in subsidiaries, joint ventures and associates,
provided that the timing of the reversal of these temporary differences can be controlled and the
temporary differences are unlikely to be reversed in the foreseeable future.
(4) On the balance sheet date, the book value of deferred tax assets is reviewed. If it is likely to earn
sufficient taxable income in the future to offset the benefits of deferred tax assets, the book value of
deferred tax assets is written down. When it is likely to earn sufficient taxable income, the written down
amount is reversed.
(5) The Company's current income tax and deferred income taxes are included in the current profit or
loss as income tax expenses or income, but do not include income tax arising from the following
circumstances: 1) business combination; 2) transactions or events directly recognized in the owners'
equity.
(1) Accounting treatments for leases in which the Company is the lessee
On the lease commencement date, the Company recognizes leases that do not exceed 12 months and
do not include purchase options as short-term leases; if the single leased assets are new and with a
low value, the leases are recognized as leases of low value assets. If the Company subleases or
expects to sublease the leased assets, the original leases shall not be recognized as leases of low
value assets.
For all short-term leases and leases of low value assets, the Company, during each period of the lease
term, includes the lease payments into the relevant asset cost or the current profit or loss according to
the straight-line method.
Except for the above-mentioned short-term leases and leases of low value assets with simplified
treatment, the Company recognizes the right-of-use assets and lease liabilities for the lease on the
lease commencement date.
Right-of-use assets are initially measured at cost, which includes: 1) the initial measurement amount of
the lease liabilities; 2) the lease payments made on or before the lease commencement date, or the
relevant amount after deducting the lease incentive already enjoyed if any; 3) initial direct costs incurred
by the lessee; 4) the costs expected to be incurred by the lessee for dismantling and removing the
leased assets, restoring the site where the leased assets are located or restoring the leased assets to
the condition agreed in the lease terms.
The Company depreciates the right-of-use assets according to the straight-line method. If it can be
reasonably determined that the ownership of leased assets will be acquired upon the expiration of the
lease term, the Company depreciates the leased assets over their remaining service life. If it cannot be
reasonably determined that the ownership of leased assets will be acquired upon the expiration of the
lease term, the Company depreciates the leased assets during the shorter of the lease term and the
remaining service life of the leased assets.
On the lease commencement date, the Company recognizes the present value of the unpaid lease
payments as lease liabilities. When calculating the present value of lease payments, the interest rate
implicit in lease is used as the discount rate. If the implicit interest rate of the lease cannot be
determined, the incremental borrowing rate of the Company is used as the discount rate. The difference
between the lease payments and its present value is recognized as unrecognized financing expenses,
and the interest expenses are recognized at the discount rate of the present value of the recognized
lease payments in each period of the lease term and included in the current profit or loss. Variable
lease payments not included in the measurement of lease liabilities are included in the current profit or
loss when actually incurred.
After the lease commencement date, the Company remeasures the lease liability based on the present
value of the changed lease payments in case of any change in below items: actual fixed payment
amount, estimated amount payable of the guaranteed residual value, the index or ratio used to
determine the lease payments, or the evaluation result or actual exercise of the purchase option,
renewal option or termination option. In such cases, the book value of the right-of-use assets is also
adjusted accordingly. If the book value of the right-of-use assets has been reduced to zero, but the
lease liabilities still need to be further reduced, the remaining amount is included in the current profit or
loss.
If there is a modification in the lease and the following conditions are met simultaneously, the Company
accounts for the lease modification as a separate lease: ① the lease change expands the lease scope
by adding the right of use on one or more leased assets; ② the increased consideration is equivalent to
the amount of the separate price of the expanded part of the lease scope adjusted according to the
contract conditions.
If the lease modification is not accounted for as a separate lease, on the effective date of the lease
modification, the Company re-apportions the consideration of the modified contract, re-determines the
lease term, and re-measures the lease liabilities at the present value calculated at the modified lease
payments and the revised discount rate. If a lease modification results in a reduced scope of the lease
or a shortened lease term, the Company reduces the book value of the right-of-use assets accordingly
and recognizes the gain or loss related to the partial or complete termination of leases in current profit
or loss. If there are other lease modifications that result in a re-measurement of lease liabilities, the
Company adjusts the book value of right-of-use assets accordingly.
(2) Accounting treatments for leases in which the Company is the lessor
On the lease commencement date, the Company classifies leases that have essentially transferred
almost all risks and rewards related to the ownership of leased assets as financing leases, while all
other leases are classified as operating leases.
During each period of the lease term, the Company recognizes the lease receipts as rental income
according to the straight-line method, and the initial direct costs incurred in connection with the
operating leases are capitalized and amortized on the same basis as the recognition of rental income,
and included in the current profit or loss in installments. The variable lease payments related to
operating leases obtained by the Company but not yet included in the lease receipts are included in the
current profit or loss when actually incurred.
On the lease commencement date, the Company recognizes the financing lease receivables according
to the net lease investment (the sum of the unguaranteed residual value and the present value of the
lease receipts not received on the lease commencement date discounted at the interest rate implicit in
lease), and derecognizes the financing lease assets. During each period of the lease term, the
Company calculates and recognizes the interest income at the interest rate implicit in lease.
The variable lease payments obtained by the Company but not yet included in the measurement of net
lease investment are included in the current profit or loss when actually incurred.
In case of any modifications in operating leases, the Company accounts for the modified lease as a
new lease from the effective date of the modification, and the advance or receivable lease receipts
related to the lease before the modification is regarded as the receipt amount of the new lease.
If there is a modification in the financing lease and the following conditions are met simultaneously, the
Company accounts for the modification as a separate lease: ① the modification expands the scope of
the lease by adding the right of use of one or more leased assets; ② the increased consideration is
equivalent to the amount of the separate price of the expanded part of the lease scope adjusted
according to the contract conditions.
If the modification in the financing lease is not accounted for as a separate lease, the Company treats
the modified lease respectively according to the following circumstances: ① if the modification takes
effect on the lease commencement date and the lease is classified as operating leases, the Company
accounts for it as a new lease from the effective date of the lease modification and takes the net lease
investment before the effective date of the lease modification as the book value of the leased assets; ②
if the modification takes effect on the lease commencement date, the lease will be classified as a
financing lease, and the Company accounts for it in accordance with the provisions of Accounting
Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments on
modifying or renegotiating the contract.
When the Company acts as a sublease lessor, the original lease contract and the sublease contract are
accounted for separately according to the accounting treatment requirements of the lessee and the
lessor. If the original lease is a short-term leases and simplified accounting treatments have been
adopted, the sublease is classified as operating leases.
(3) Sale and leaseback
The Company, in accordance with the provisions of Accounting Standards for Business Enterprises No.
transactions is a sale.
If the transfer of assets in the sale and leaseback transactions is a sale, the lessee measures the right-
of-use assets arising from the sale and leaseback according to the part of the book value of the original
assets related to the right of use obtained from the leaseback, and only recognizes the relevant gains or
losses on the rights transferred to the lessor. The lessor accounts for asset purchase in accordance
with other applicable accounting standards for business enterprises and conducts accounting treatment
for the asset lease in accordance with Accounting Standards for Business Enterprises No. 21 - Leases.
If the transfer of assets in the sale and leaseback transactions is not a sale, the lessee continues to
recognize the transferred assets, and recognizes the financial liabilities equal to the transfer revenue.
Meanwhile, the lessee accounts for the financial liabilities in accordance with Accounting Standards for
Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments. The lessor does
not recognize the transferred assets, but recognizes financial assets equal to the revenue transferred. It
also accounts for that financial asset in accordance with Accounting Standards for Business Enterprises
No. 22 - Recognition and Measurement of Financial Instruments.
(1) Major changes in accounting policies
□ Applicable ? Not applicable
(2) Major changes in accounting estimates
□ Applicable ? Not applicable
(3) Adjustments of relevant items of financial statements at the beginning of the year in the year
of initial implementation of new accounting standards from 2025
□ Applicable ? Not applicable
VI. Taxation
Tax type Tax basis Tax rate
Sales of goods or provision of taxable
Value-added tax [Note 1]
services
Taxable price of sales revenue from
Consumption tax 5%
taxable consumer goods
Urban maintenance and construction Apply 7%, 5%, and 1% respectively by
Turnover tax payable
tax regional level
Corporate income tax Taxable income 25%、20%、15%、16.5%
Value added from the paid transfer of
the state-owned land use right and the
Land value increment tax 30%-60%
property rights of the above-ground
buildings and other attachments
If it is levied on an ad valorem basis, it
shall be calculated and paid at 1.2% of
the residual value after the original
Property taxes value of the property is deducted by 1.2%、12%
calculated and paid at 12% of rental
income
Education surcharge Turnover tax payable 3%
Local education surcharges Turnover tax payable 2%
If there are taxpayers with different corporate income tax rates, please disclose with an explanation
Name of taxpayer Income tax rate
Chongqing Shenguomao Real Estate Management Co.,
Ltd.
Chongqing Branch of Shenzhen International Trade Center
Property Management Co., Ltd.
Shenzhen Facility Management Community Co., Ltd. 15%
Shenzhen Property Engineering and Construction
Supervision Co., Ltd.
Shenzhen Jinhailian Property Management Co., Ltd. 20%
Shenzhen Kangping Industrial Co., Ltd. 20%
Shenzhen Jiaoshizhijia Training Co., Ltd. 20%
Shenzhen Education Industry Co., Ltd. 20%
Shenzhen Yufa Industrial Co., Ltd. 20%
Name of taxpayer Income tax rate
Chongqing Aobo Elevator Co., Ltd. 20%
Shenzhen SZPRD Fuyuantai Development Co., Ltd. 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 International Trade Center Mechanical and
Electrical Equipment Co., Ltd.
Shenzhen Helinhua Construction Management Co., Ltd. 20%
Shenzhen ITC Tongle Property Management 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 Shenzhen ITC Hotel Management Co., Ltd. 20%
Shenzhen Jiayuan Property Management Co., Ltd. 20%
Shenzhen ITC Shenlv Garden Co., Ltd. 20%
Beijing Facility Management Community Technology Co.,
Ltd.
Shenzhen ITC Space Service Co., Ltd. 20%
Shenzhen Guomao Catering Co., Ltd. 20%
A subsidiary registered in Hong Kong 16.50%
A subsidiary registered in Vietnam 20%
Other taxpayers within the consolidation scope 25%
(1) According to the provisions of Article 2 Property service of the 37th category of commercial service
industry in the incentive category of the Guidance Catalogue of Industrial Structure Adjustment (2011
Edition) (GJFGW No. 9) issued by the National Development and Reform Commission, the eligible
western China enterprises shall be subject to a corporate income tax at a reduced tax rate of 15%. The
above policy applies to subsidiaries Chongqing Shenzhen International Trade Center Property
Management Co., Ltd. and the Chongqing Branch of Shenzhen International Trade Center Property
Management Co., Ltd.
(2) Shenzhen Facility Management Community Co., Ltd. passed the re-inspection for high-tech
certification on December 25, 2025. The certificate number is GR202544204121, and the validity period
is three years. According to the tax law, the preferential corporate income tax rate of 15% applies for
(3) According to the Announcement on Preferential Income Tax Policies for Small and Micro
Enterprises and Individual Business Entities (CZB SWZJ GG [2023] No.6) issued by the Ministry of
Finance and the State Taxation Administration, and according to the Announcement on Tax Policies for
Further Supporting the Development of Small and Micro Enterprises and Individual Business Entities
(CZB SWZJ GG [2023] No.12) issued by the Ministry of Finance and the State Taxation Administration,
small low-profit enterprises enjoy a corporate income tax reduction with 25% of the actual corporate
income for calculating taxable income, and 20% as the tax rate. The resource tax (excluding water
resources tax), urban maintenance and construction tax, housing tax, urban land use tax, stamp duty
(excluding stamp duty on securities transactions), farmland occupation tax, education surcharge and
local education surcharge shall be halved for small-scale value-added tax payers, small low-profit
enterprises and individual business entities, with the validity period from January 1, 2023 to December
Supervision Co., Ltd. and Shenzhen GuoGuang Mechanical and Electrical Equipment Co., Ltd., are
eligible for the policy.
Note 1 The VAT taxable items and tax rates of the Company and its subsidiaries are shown in the table below:
Revenue type General tax rate Simplified tax rate
Real estate sales revenue 9% 5%
Real estate rental revenue 9% 5%
Property service revenue 6% 3%
Catering service revenue 6% 3%
Others 13% --
VII. Notes to items in consolidated financial statements
Unit: RMB
Item Ending balance Beginning balance
Cash on hand 7,741.04 10,705.64
Bank deposits 2,118,358,257.70 1,672,092,309.74
Other monetary funds 5,977,057.45 6,013,628.74
Total 2,124,343,056.19 1,678,116,644.12
Including: total amount deposited
abroad
Other explanations:
At the end of the period, the amount of restricted funds due to mortgage, pledge, freezing, etc. is
RMB82,297,671.21, mainly including guarantee and interest of RMB4,274,845.35; the restricted funds
in the bank deposits mainly include the frozen funds of RMB3,662,969 and the principal and interest of
time deposits of RMB74,359,856.86; the above amount is not treated as cash and cash equivalents due
to restrictions on use. The funds deposited overseas are mainly the balance of monetary funds of the
overseas subsidiaries Shum Yip Properties Development Limited and Vietnam Shenzhen International
Trade Center Property Management Co., Ltd.
Unit: RMB
Item Ending balance Beginning balance
Financial assets measured at fair value
through current profit or loss
Including:
Fund 301,765,714.20 0.00
Including:
Total 301,765,714.20 0.00
Other explanations:
Unit: RMB
Item Ending balance Beginning balance
Other explanations:
(1) Presentation of notes receivable by category
Unit: RMB
Item Ending balance Beginning balance
(2) Disclosure by provision method for bad debts
Unit: RMB
Ending balance Beginning balance
Provision for bad Provision for bad
Book balance Book balance
Type debts Book debts Book
Provision value Provision value
Amount Ratio Amount Amount Ratio Amount
ratio ratio
Including:
Including:
Total 0.00
If the provision for bad debts of notes receivable is made in accordance with the general model of
expected credit losses:
□ Applicable ? Not applicable
(3) Provision for bad debts accrued, recovered or reversed for the current period
Provision for bad debts for the current period:
Unit: RMB
Changes in the current period
Beginning
Type Recovery or Ending balance
balance Provision Write-off Others
reversal
Significant amounts of recovered or reversed provision for bad debts for the current period:
□ Applicable ? Not applicable
(4) The Company's pledged notes receivable at the end of the period
Unit: RMB
Item Ending pledged amount
(5) Notes receivable endorsed or discounted by the Company and not yet due on the balance
sheet date at the end of the period
Unit: RMB
Item Ending derecognized amount Ending un-derecognized amount
(6) Actual write-off of notes receivable for the current period
Unit: RMB
Item Amount of write-off
Including write-off of important notes receivable:
Unit: RMB
Whether the fund
Write-off
Nature of notes Reasons for write- is generated by
Entity name Amount of write-off procedures
receivable off related party
performed
transactions
Explanation on write-off of notes receivable:
(1) Disclosure by aging
Unit: RMB
Aging Ending book balance Beginning book balance
Within 1 year (including 1 year) 331,346,057.76 305,894,933.54
Over 3 years 148,389,020.09 136,095,567.36
Over 5 years 124,438,448.66 116,978,488.34
Total 580,070,356.74 637,897,684.20
(2) Disclosure by provision method for bad debts
Unit: RMB
Ending balance Beginning balance
Book balance Provision for bad debts Book balance Provision for bad debts
Type
Provision Book value Provision Book value
Amount Ratio Amount Amount Ratio Amount
ratio ratio
Accounts
receivable
with
provision
for bad 19.87% 98.23% 17.98% 98.22%
debts on
an
individual
basis
Including:
Accounts
receivable
with
provision 464,790,44 49,049,097 415,741,35 523,230,13 49,261,321 473,968,81
for bad 8.97 .85 1.12 1.65 .61 0.04
debts on a
combinatio
n basis
Including:
Total 100.00% 27.98% 100.00% 25.38%
Provision for bad debts accrued on an individual basis: RMB 113,236,988.45
Unit: RMB
Beginning balance Ending balance
Name Provision for Provision for Reasons for
Book balance Book balance Provision ratio
bad debts bad debts provision
Shenzhen
Involved in
Jiyong Property
Development
irrecoverable
Co., Ltd.
Shenzhen
Tewei Industrial
Estimated to be
Co., Ltd. 2,836,561.00 2,836,561.00 2,836,561.00 2,836,561.00 100.00%
irrecoverable
(Chenhui
Building)
Shenzhen
Lunan
Estimated to be
Industrial 2,818,284.84 2,818,284.84 2,818,284.84 2,818,284.84 100.00%
irrecoverable
Development
Company
Shenzhen
Hampoo
Electronic Estimated to be
Technology irrecoverable
Development
Co., Ltd.
Accounts
receivable with
insignificant
single amount Failed to
but subject to 13,765,358.37 11,722,388.81 14,377,713.59 12,337,744.27 85.81% recover for a
provision for long time
bad debts on
an individual
basis
Total 114,667,552.55 112,621,632.99 115,279,907.77 113,236,988.45
Provision for bad debts accrued on combination: RMB 49,049,097.85
Unit: RMB
Ending balance
Name
Book balance Provision for bad debts Provision ratio
Credit risk characteristic
combination
Government funding
combination
Total 464,790,448.97 49,049,097.85
Explanation on the basis for determining the combination:
If the provision for bad debts of accounts receivable is made in accordance with the general model of
expected credit losses:
□ Applicable ? Not applicable
(3) Provision for bad debts accrued, recovered or reversed for the current period
Provision for bad debts for the current period:
Unit: RMB
Changes in the current period
Beginning
Type Recovery or Ending balance
balance Provision Write-off Others
reversal
Provision for
bad debts
accrued on an
individual basis
Provision for
bad debts
made by
portfolio
Total 161,882,954.60 403,131.70 162,286,086.30
Significant amounts of recovered or reversed provision for bad debts for the current period:
Unit: RMB
Basis for determining
Recovered or reversed the ratio of provision
Entity name Reason for reversal Recovery method
amount for bad debts and its
rationality
(4).Actual write-off of accounts receivable for the current period
Unit: RMB
Item Amount of write-off
Including write-off of important accounts receivable:
Unit: RMB
Whether the fund
Write-off
Nature of accounts Reasons for write- is generated by
Entity name Amount of write-off procedures
receivable off related party
performed
transactions
Explanation on write-off of accounts receivable:
(5) Top five accounts receivable by the debtor in terms of the ending balance and contract
assets
Unit: RMB
Ratio to the total Ending balance of
amount of ending provision for bad
Ending balances
Ending balance of balance of debts of accounts
Ending balance of of accounts
Entity name accounts accounts receivable and
contract assets receivable and
receivable receivable and provision for
contract assets
contract assets impairment of
(%) contract assets
Shenzhen Jiyong
Property
Development Co.,
Ltd.
Shenzhen Bay
Technology
Development Co.,
Ltd.
Hebei Shenbao
Investment
Development Co.,
Ltd.
Shenzhen Futian
District
Government
Property
Management
Center
Shenzhen Sports
Center Operation
Management Co.,
Ltd.
Total 213,041,920.04 213,041,920.04 36.69% 100,486,711.89
(1) Details of contract assets
Unit: RMB
Ending balance Beginning balance
Item Provision for Provision for
Book balance Book value Book balance Book value
bad debts bad debts
Quality
guarantee
deposit for 580,850.15 580,850.15 468,765.62 468,765.62
municipal
works
Total 580,850.15 580,850.15 468,765.62 468,765.62
(2) Major changes of book value during the reporting period and reasons
Unit: RMB
Item Changes Reason for changes
(3).Disclosure by provision method for bad debts
Unit: RMB
Ending balance Beginning balance
Provision for bad Provision for bad
Book balance Book balance
Type debts Book debts Book
Provision value Provision value
Amount Ratio Amount Amount Ratio Amount
ratio ratio
Including:
Including:
The provision for bad debts made according to the general model of expected credit losses
□ Applicable ? Not applicable
(4) Provision for bad debts accrued, recovered or reversed for the current period
Unit: RMB
Write-off/ cancellation
Provision for the Recovered or reversed
Item after verification for the Reasons
current period for the current period
current period
Significant amounts of recovered or reversed provision for bad debts for the current period:
Unit: RMB
Basis for determining
Recovered or reversed the ratio of provision
Entity name Reason for reversal Recovery method
amount for bad debts and its
rationality
Other explanations:
(5).Actual write-off of contract assets for the current period
Unit: RMB
Item Amount of write-off
Including write-off of important contract assets
Unit: RMB
Whether the fund
Write-off
Reasons for write- is generated by
Entity name Nature of payment Amount of write-off procedures
off related party
performed
transactions
Explanation on write-off of contract assets:
Other explanations:
(1) Presentation of receivables financing by category
Unit: RMB
Item Ending balance Beginning balance
(2) Disclosure by provision method for bad debts
Unit: RMB
Ending balance Beginning balance
Provision for bad Provision for bad
Book balance Book balance
Type debts Book debts Book
Provision value Provision value
Amount Ratio Amount Amount Ratio Amount
ratio ratio
Including:
Including:
The provision for bad debts made according to the general model of expected credit losses
Unit: RMB
Phase I Phase II Phase III
Provision for bad Expected credit loss Expected credit loss
Expected credit losses Total
debts throughout the throughout the
over the next 12
duration (without credit duration (with credit
months
impairment) impairment)
Balance as of January
period
Basis for division of each stage and ratio of provision for bad debts
Explanation on significant changes in the book balance of receivables financing due to changes in
provision for loss for the current period:
(3) Provision for bad debts accrued, recovered or reversed for the current period
Unit: RMB
Changes in the current period
Beginning
Type Recovery or Resale or write- Ending balance
balance Provision Other changes
reversal off
Significant amounts of recovered or reversed provision for bad debts for the current period:
Unit: RMB
Basis for determining
Recovered or reversed the ratio of provision
Entity name Reason for reversal Recovery method
amount for bad debts and its
rationality
Other explanations:
(4) The Company's pledged receivables financing at the end of the period
Unit: RMB
Item Ending pledged amount
(5) Receivables financing endorsed or discounted by the Company and not yet due on the
balance sheet date at the end of the period
Unit: RMB
Item Ending derecognized amount Ending un-derecognized amount
(6) Actual write-off of receivables financing for the current period
Unit: RMB
Item Amount of write-off
Including write-off of important receivables financing
Unit: RMB
Whether the fund
Write-off
Reasons for write- is generated by
Entity name Nature of payment Amount of write-off procedures
off related party
performed
transactions
Explanation on write-off:
(7) Increases/decreases and fair value changes of receivables financing for the current period
(8) Other explanations
Unit: RMB
Item Ending balance Beginning balance
Other receivables 267,565,109.11 273,333,289.51
Total 267,565,109.11 273,333,289.51
(1) Interest receivable
Unit: RMB
Item Ending balance Beginning balance
Unit: RMB
Whether impairment
Borrower Ending balance Overdue time Reason for overdue occurs and the basis
for judgment
Other explanations:
□ Applicable ? Not applicable
Unit: RMB
Changes in the current period
Beginning
Type Recovery or Resale or write- Ending balance
balance Provision Other changes
reversal off
Significant amounts of recovered or reversed provision for bad debts for the current period:
Unit: RMB
Basis for determining
Recovered or reversed the ratio of provision
Entity name Reason for reversal Recovery method
amount for bad debts and its
rationality
Other explanations:
Unit: RMB
Item Amount of write-off
Including write-off of important interest receivable
Unit: RMB
Whether the fund
Write-off
Reasons for write- is generated by
Entity name Nature of payment Amount of write-off procedures
off related party
performed
transactions
Explanation on write-off:
Other explanations:
(2) Dividends receivable
Unit: RMB
Project (or investees) Ending balance Beginning balance
Unit: RMB
Whether impairment
Reason for not
Project (or investees) Ending balance Aging occurs and the basis
withdrawing
for judgment
□ Applicable ? Not applicable
Unit: RMB
Changes in the current period
Beginning
Type Recovery or Resale or write- Ending balance
balance Provision Other changes
reversal off
Significant amounts of recovered or reversed provision for bad debts for the current period:
Unit: RMB
Basis for determining
Recovered or reversed the ratio of provision
Entity name Reason for reversal Recovery method
amount for bad debts and its
rationality
Other explanations:
Unit: RMB
Item Amount of write-off
Write-off of important dividends receivable
Unit: RMB
Whether the fund
Write-off
Reasons for write- is generated by
Entity name Nature of payment Amount of write-off procedures
off related party
performed
transactions
Explanation on write-off:
Other explanations:
(3) Other receivables
Unit: RMB
Nature of payment Ending book balance Beginning book balance
Deposit 16,570,122.08 15,529,043.09
Guarantee 33,556,554.25 33,305,992.74
Petty cash 65,000.00 107,431.74
Withholding payments 15,143,545.86 14,146,194.97
Current accounts 628,885,730.76 631,105,205.00
Others 28,482,247.50 27,382,989.67
Total 722,703,200.45 721,576,857.21
Unit: RMB
Aging Ending book balance Beginning book balance
Within 1 year (including 1 year) 24,995,887.18 26,526,466.14
Over 3 years 673,901,619.59 665,383,390.60
Over 5 years 94,881,933.95 65,033,356.58
Total 722,703,200.45 721,576,857.21
? Applicable Not applicable
Unit: RMB
Ending balance Beginning balance
Provision for bad Provision for bad
Book balance Book balance
Type debts Book debts Book
Provision value Provision value
Amount Ratio Amount Amount Ratio Amount
ratio ratio
Provision
for bad
debts
accrued 86.86% 62.51% 87.00% 62.51%
on an
individual
basis
Including:
Provision
for bad
debts 13.14% 66.08% 13.00% 59.52%
made by
portfolio
Including:
Total 100.00% 62.98% 100.00% 62.12%
Provision for bad debts accrued on an individual basis: RMB 392,405,624.92
Unit: RMB
Beginning balance Ending balance
Name Provision for Provision for Reasons for
Book balance Book balance Provision ratio
bad debts bad debts provision
Shenzhen
Xinhai Holdings
Co., Ltd. and its
related parties
Shenzhen
Xinhai Rongyao
Real Estate Prudent
Development 587,289,550.00 362,846,450.00 587,289,550.00 362,846,450.00 61.78% judgment on
Co., Ltd., and recovery risk
Shenzhen
Qianhai
Advanced
Information
Service Co.,
Ltd.
Shenzhen
No
Tianjun
Industrial Co.,
risk is expected
Ltd.
Shanghai
Yutong Real Failed to
Estate 5,676,000.00 5,676,000.00 5,676,000.00 5,676,000.00 100.00% recover for a
Development long time
Co., Ltd.
Hong Kong
Failed to
Yueheng
Development
long time
Co., Ltd.
Failed to
Dameisha
Tourism Center
long time
Failed to
Elevated Train
Project
long time
Accounts
receivable with
insignificant
single amount Failed to
but subject to 16,414,268.43 15,492,559.02 16,414,268.43 15,492,559.02 94.38% recover for a
provision for long time
bad debts on
an individual
basis
Total 627,770,434.33 392,405,624.92 627,770,434.33 392,405,624.92
Provision for bad debts accrued on combination: RMB 62,732,466.42
Unit: RMB
Ending balance
Name
Book balance Provision for bad debts Provision ratio
Within 1 year 24,370,319.52 731,109.88 3.00%
Over 5 years 57,681,463.37 57,681,463.37 100.00%
Total 94,932,766.12 62,732,466.42
Explanation on the basis for determining the combination:
The provision for bad debts made according to the general model of expected credit losses
Unit: RMB
Phase I Phase II Phase III
Provision for bad Expected credit loss Expected credit loss
Expected credit losses Total
debts throughout the throughout the
over the next 12
duration (without credit duration (with credit
months
impairment) impairment)
Balance as of January
Balance as of January
period
Provision for the
current period
Balance as of
December 31, 2025
Basis for division of each stage and ratio of provision for bad debts
Changes in the book balance of provision for loss with significant changes in the current period
□ Applicable ? Not applicable
Provision for bad debts for the current period:
Unit: RMB
Changes in the current period
Beginning
Type Recovery or Resale or write- Ending balance
balance Provision Others
reversal off
Provision for
bad debts 392,405,624.92 392,405,624.92
accrued on an
Changes in the current period
Beginning
Type Recovery or Resale or write- Ending balance
balance Provision Others
reversal off
individual basis
Provision for
bad debts
made by
portfolio
Total 448,243,567.70 6,896,032.05 -1,508.41 455,138,091.34
Reversal or recovery of significant amount of provision for bad debts in the current period:
Unit: RMB
Basis for determining
Recovered or reversed the ratio of provision
Entity name Reason for reversal Recovery method
amount for bad debts and its
rationality
Unit: RMB
Item Amount of write-off
Important other receivables write-off:
Unit: RMB
Whether the fund
Write-off
Nature of other Reasons for write- is generated by
Entity name Amount of write-off procedures
receivables off related party
performed
transactions
Explanations on write-off of other receivables:
Unit: RMB
Balance of
Ratio to the total
provision for bad
Entity name Nature of amount Ending balance Aging ending balance of
debts as at the
other receivables
end of the period
Shenzhen Xinhai
Rongyao Real
Estate Current accounts 375,068,984.55 51.90% 231,729,731.18
Development Co.,
Ltd.
Shenzhen Xinhai 4 to 5 years, over
Guarantee 201,499,990.18 27.88% 124,493,201.20
Holdings 5 years
Shenzhen
Bengling Joint
Current accounts 30,000,000.00 Over 5 years 4.15% 30,000,000.00
Stock Cooperative
Company
Balance of
Ratio to the total
provision for bad
Entity name Nature of amount Ending balance Aging ending balance of
debts as at the
other receivables
end of the period
Shenzhen Qianhai
Advanced
Guarantee 10,720,575.27 4 to 5 years 1.48% 6,623,517.62
Information
Service Co., Ltd.
Shenzhen Tianjun
Guarantee 10,000,000.00 4 to 5 years 1.38%
Industrial Co., Ltd.
Total 627,289,550.00 86.79% 392,846,450.00
Unit: RMB
Other explanations:
(1) Advances to suppliers are listed by aging
Unit: RMB
Ending balance Beginning balance
Aging
Amount Ratio Amount Ratio
Within 1 year 7,493,552.61 78.57% 5,575,416.69 71.57%
Over 3 years 674,666.28 7.07% 327,861.81 4.21%
Total 9,538,231.89 7,789,173.69
Explanation of the reasons for the delayed settlement of advances to suppliers with an aging of over 1
year and significant amounts:
(2) Prepayment status of the top five year-end balances collected by prepaid objects
Proportion in the total ending
Advances to suppliers
Entity name balance of prepayment (%)
Ending balance
Chongqing Yudi Assets Operation
Management Co., Ltd.
The Fifth Construction Engineering Co., Ltd.
of China Construction Fourth Engineering 568,181.04 5.96
Co., Ltd.
Shenzhen Bay Technology Development
Co., Ltd.
Shenzhen Youxun Longteng Technology
Co., Ltd.
PetroChina Company Limited Qinghai
Golmud Sales Branch
Total 3,751,459.86 39.33
Other explanations:
Whether the company needs to comply with the disclosure requirements of the real estate industry
Yes
(1) Inventories Classification
The Company shall comply with the disclosure requirements for the real estate industry as set out in the
Guidelines for Self-Regulation of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry
Information Disclosure
Classification by nature
Unit: RMB
Ending balance Beginning balance
Provision for Provision for
inventory inventory
Item depreciation or depreciation or
Book balance provision for Book value Book balance provision for Book value
impairment of impairment of
contract contract
performance costs performance costs
Development costs 11,182,897,066.48 1,159,179,944.88 10,023,717,121.60 10,400,305,603.19 1,159,179,944.88 9,241,125,658.31
Developing
products
Raw materials 1,500,567.49 910,783.62 589,783.87 1,497,761.18 907,923.88 589,837.30
Inventories of
goods
Low-value
consumables
Total 12,335,392,121.90 1,231,482,651.85 11,103,909,470.05 11,942,981,952.88 1,257,936,799.47 10,685,045,153.41
Disclose the main items of "development costs" and their capitalization of interest in the following
format:
Unit: RMB
Transfer
Increase Including:
to Accumula
Other in the Capitalize
Estimated developm ted
Commenc Estimated decreases current d amount
total Beginning ent Ending capitalizat Source of
Project ement completio in the period of interest
investmen balance products balance ion funds
time n time current (develop in the
t in the amount of
period ment current
current interest
costs) period
period
Lake City October Septembe 8,400,000 6,010,563 523,104,4 6,533,667 589,783,2 112,403,6 Bank
Project 15, 2020 r 10, 2026 ,000.00 ,047.67 98.87 ,546.54 72.62 77.48 loans
Humen
Binhai March 22, June 30, 3,217,590 2,741,418 78,045,51 2,819,464 39,375,46 14,992,29 Bank
Harbor 2022 2029 ,000.00 ,798.21 8.14 ,316.35 1.97 6.61 loans
Project
Land in
Hongqi 6,648,404 6,648,404
Town, .13 .13
Haikou
Shenhui 37,372,79 37,372,79
Garden 7.39 7.39
Fuyuantai 19,968,53 5,900,148 25,868,68
Project 2.62 .08 0.70
Shenyang March 6, May 30, 3,774,790 1,534,418 172,533,6 1,706,952 22,281,01 13,459,12 Bank
Digital 2023 2026 ,000.00 ,436.51 85.21 ,121.72 7.20 4.59 loans
Transfer
Increase Including:
to Accumula
Other in the Capitalize
Estimated developm ted
Commenc Estimated decreases current d amount
total Beginning ent Ending capitalizat Source of
Project ement completio in the period of interest
investmen balance products balance ion funds
time n time current (develop in the
t in the amount of
period ment current
current interest
costs) period
period
Intelligent
City
Project
Others 0.00 Others
Total -- -- 0.00 0.00 --
Disclose the main project information of "developed products" in the following format:
Unit: RMB
Including:
Accumulated
Capitalized
Time of Beginning Increase in the Decrease in the capitalization
Project Ending balance amount of
completion balance current period current period amount of
interest in the
interest
current period
SZPRD · Cover
December 1,
ed Bridge 3,447,316.75 3,447,316.75 83,077,702.96
International
SZPRD · Lakesi
de Royal View June 1, 2015 30,049,833.98 264,143.81 29,785,690.17 10,446,911.43
Phase I
SZPRD · Bansh
January 12,
an Yujing Phase 3,479,487.46 3,479,487.46 27,205,315.95
II
SZPRD · Songh
July 1, 2017 22,232,784.19 848,079.00 21,384,705.19 30,539,392.65
u Langyuan
SZPRD · Lakesi
November 1,
de Royal View 30,166,422.64 188,175.21 29,978,247.43
Phase II
SZPRD · Golde December 1,
n Ling Holiday 2019
SZPRD · Fucha
ng Garden January 18,
Phase II (Fuhui 2023
Huayuan)
SZPRD · Yutan December 3, 1,423,905,608.2 1,051,997,043.1
g Shangfu 2024 7 8
December 1,
Guomao Plaza 4,839,083.10 4,839,083.10 26,385,636.29
Area A,
June 1, 2001 790,140.58 790,140.58
Huangyuyuan
Podium building
November 1,
of Fuchang 645,532.65 645,532.65
Building
Other projects 2,551,428.03 2,284,926.85 266,501.18
Total -- 600,686.71 391,157,173.38 189,145,607.83
Disclose "development products with installment collection", "development products for lease" and
"revolving houses" by item in the following format:
Unit: RMB
Increase in the current Decrease in the
Project Beginning balance Ending balance
period current period
(2) Data resources recognized as inventories
Unit: RMB
Inventories of Inventories of data Inventories of data
Item purchased data resource processed by resource obtained by Total
resources oneself other means
(3) Provision for inventory depreciation and provision for impairment of contract performance
costs
The provision for inventory depreciation shall be disclosed in the following format:
Classification by nature
Unit: RMB
Increase in the current period Decrease in the current period
Beginning
Item Reversal or Ending balance Remark
balance Provision Others Others
write-off
Development 1,159,179,944.8 1,159,179,944.8
costs 8 8
Developing
products
Raw materials 907,923.88 2,859.74 910,783.62
Inventories of
goods
Total 2,859.74 26,457,007.36
Classification by main items:
Unit: RMB
Increase in the current Decrease in the current
Beginning period period Ending
Project Remark
balance Reversal or balance
Provision Others Others
write-off
(4) The capitalization rate of interest in the ending balance of inventories
Capitalization
Capitalization Amount carried Capitalization
amount at the
Project amount of the forward of the amount at the end of
beginning of the
current period current period the period
period
SZPRD · Golden Ling Holiday 68,298.63 68,298.63
SZPRD · Lanhu Shidai 477,379,595.14 112,403,677.48 589,783,272.62
SZPRD · Covered Bridge
International
SZPRD · Lakeside Royal
View Phase I
SZPRD · Harbour Palace 24,383,165.36 14,992,296.61 39,375,461.97
SZPRD · Yutang Shangfu 7,201,211.25 1,873,017.89 5,328,193.36
Shenzhen
Property · Shenyang Digital 8,821,892.61 13,459,124.59 22,281,017.20
Intelligent City
Capitalization
Capitalization Amount carried Capitalization
amount at the
Project amount of the forward of the amount at the end of
beginning of the
current period current period the period
period
Total 522,046,423.63 140,855,098.68 4,963,355.95 657,938,166.36
(5) Restricted inventories situation
Disclosure of restricted inventories by item:
Unit: RMB
Project Beginning balance Ending balance Reason for restriction
Land use right of Lake City
Project plot
Land use right of Plots B and
D of Shenyang Digital
Intelligent City Project and 523,395,967.09 987,723,102.87 Loan collateral
Plot D construction in
progress
Guomao Plaza 0.00 4,839,083.09 Loan collateral
Total 925,263,291.09 1,416,918,425.96
Unit: RMB
Ending book Provision for Closing book Estimated Estimated
Item Fair value
balance impairment value disposal cost disposal time
Other explanations:
Unit: RMB
Item Ending balance Beginning balance
(1) Debt investments due within one year
□ Applicable ? Not applicable
(2) Other debt investments due within one year
□ Applicable ? Not applicable
Unit: RMB
Item Ending balance Beginning balance
Prepaid value-added tax 30,698,000.74 26,330,826.55
Input tax to be deducted 153,865,680.59 140,627,987.61
Prepaid income tax 1,598,767.57 2,883,055.01
Prepaid land value increment tax 17,903,342.72 8,078,866.26
Item Ending balance Beginning balance
Prepaid urban construction tax 3,734,334.77 2,215,820.29
Advance payment of education
surcharges
Instant collection and refund of value-
added tax on software sales receivable
Total 210,498,041.00 181,721,113.82
Other explanations:
(1) Details of debt investments
Unit: RMB
Ending balance Beginning balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Changes in provision for impairment of debt investments in the current period
Unit: RMB
Increase in the current Decrease in the
Item Beginning balance Ending balance
period current period
(2) Important debt investments at the end of the period
Unit: RMB
Ending balance Beginning balance
Debt item Nominal Effective Nominal Effective
Book Maturity Overdue Book Maturity Overdue
interest interest interest interest
value date principal value date principal
rate rate rate rate
(3) Provision for impairment
Unit: RMB
Phase I Phase II Phase III
Provision for bad Expected credit loss Expected credit loss
Expected credit losses Total
debts throughout the throughout the
over the next 12
duration (without credit duration (with credit
months
impairment) impairment)
Balance as of January
period
Basis for division of each stage and ratio of provision for bad debts
(4) Debt investments actually write-off in the current period
Unit: RMB
Item Amount of write-off
The important debt investments write-off situation
Debt investments write-off description:
Changes in the book balance of provision for loss with significant changes in the current period
□ Applicable ? Not applicable
Other explanations:
(1) Other debt investments
Unit: RMB
Accumulate
d provision
Fair value for
Cumulative
Beginning Accrued Interest changes of Ending impairment
Item Cost fair value Remark
balance interest adjustment the current balance recognized
changes
period in other
comprehen
sive income
Changes in provision for impairment of other debt investments in the current period
Unit: RMB
Increase in the current Decrease in the
Item Beginning balance Ending balance
period current period
(2) Other Important debt investments at the end of the period
Unit: RMB
Ending balance Beginning balance
Other
debt Nominal Effective Nominal Effective
Book Maturity Overdue Book Maturity Overdue
items interest interest interest interest
value date principal value date principal
rate rate rate rate
(3) Provision for impairment
Unit: RMB
Phase I Phase II Phase III
Provision for bad Expected credit loss Expected credit loss
Expected credit losses Total
debts throughout the throughout the
over the next 12
duration (without credit duration (with credit
months
impairment) impairment)
Balance as of January
period
Basis for division of each stage and ratio of provision for bad debts
(4) Other debt investments actually write-off in the current period
Unit: RMB
Item Amount of write-off
Write-off of important other debt investments
Other debt investments write-off description:
Changes in the book balance of provision for loss with significant changes in the current period
□ Applicable ? Not applicable
Other explanations:
Unit: RMB
Gains Losses Reasons
Gains Loss
accumulate accumulate designated
accrued to accrued to Dividend
d into other d into other as being
other other income
comprehen comprehen measured
Ending Beginning comprehen comprehen recognized
Project sive income sive income at fair value
balance balance sive income sive income during the
at the end at the end through
in the in the current
of the of the other
current current period
current current comprehen
period period
period period sive income
Jintian
Industrial
(Group) Not for
Co., Ltd. 2
purpose
The
Company
Total 567,317.70 586,231.82 4,277.54
Derecognition exists in the current period
Unit: RMB
Cumulative losses
Cumulative gains transferred
Project transferred to retained Reasons for derecognition
to retained earnings
earnings
Disclosure of the current period non-trading equity instrument investments by item
Unit: RMB
Reasons
Amount
designated as Reasons for the
transferred
being transfer of other
Recognized from the other
Cumulative measured at comprehensive
Project dividend Cumulative loss comprehensive
gains fair value income into
income income to
through other retained
retained
comprehensive earnings
earnings
income
Jintian
Industrial
(Group) Not for trading
purpose
Co., Ltd.
The Company
Other explanations:
(1) Long-term receivables
Unit: RMB
Ending balance Beginning balance
Interval of
Item Provision for Provision for
Book balance Book value Book balance Book value discount rate
bad debts bad debts
(2) Disclosure by provision method for bad debts
Unit: RMB
Ending balance Beginning balance
Provision for bad Provision for bad
Book balance Book balance
Type debts Book debts Book
Provision value Provision value
Amount Ratio Amount Amount Ratio Amount
ratio ratio
Including:
Including:
The provision for bad debts made according to the general model of expected credit losses
Unit: RMB
Phase I Phase II Phase III
Provision for bad Expected credit loss Expected credit loss
Expected credit losses Total
debts throughout the throughout the
over the next 12
duration (without credit duration (with credit
months
impairment) impairment)
Balance as of January
period
Basis for division of each stage and ratio of provision for bad debts
(3) Provision for bad debts accrued, recovered or reversed for the current period
Unit: RMB
Changes in the current period
Beginning
Type Recovery or Resale or write- Ending balance
balance Provision Others
reversal off
Reversal or recovery of significant amount of provision for bad debts in the current period:
Unit: RMB
Basis for determining
Recovered or reversed the ratio of provision
Entity name Reason for reversal Recovery method
amount for bad debts and its
rationality
Other explanations:
(4) Actual write-off of long-term receivables in the current period
Unit: RMB
Item Amount of write-off
Write-off of important long-term receivables:
Unit: RMB
Whether the fund
Write-off
Reasons for write- is generated by
Entity name Nature of payment Amount of write-off procedures
off related party
performed
transactions
Explanations on write-off of long-term receivables:
Unit: RMB
Increase/decrease in this period
Balance of
Beginning Investment profit
Beginning Adjustment of Cash dividends provision for
balance of Ending balance
Investees balance (book or loss impairment as at
provision for Additional Reduced other Changes in or profits Provision for (book value)
value) recognized Others the end of the
impairment investment investment comprehensive other equity declared to be impairment
under the equity period
income paid
method
I. Joint ventures
Shenzhen
Property Jifa
Warehousing
Co., Ltd.
Shenzhen
Tian'an
International
Building 5,739,071.23 -1,049,490.78 4,689,580.45
Property
Management
Co., Ltd.
Sub-total 238,095,672.20 -959,476.12 237,136,196.08
II. Associates
Shenzhen
Wufang Ceramic
Industry Co.,
Ltd.
Shenzhen
Comfort Health
Products Co.,
Ltd.
Shenzhen
Xinghao
Imitation
Porcelain
Products Co.,
Ltd.
Shenzhen
Social Welfare
Company Fuda 326,693.24 326,693.24
Electronics
Factory
Shenzhen
Fulong Industrial
Development
Co., Ltd.
Haonianhua 2,733,570.05 2,733,570.05
Increase/decrease in this period
Balance of
Beginning Investment profit
Beginning Adjustment of Cash dividends provision for
balance of or loss Ending balance
Investees balance (book other or profits impairment as at
provision for Additional Reduced Changes in Provision for (book value)
value) recognized Others the end of the
impairment investment investment comprehensive other equity declared to be impairment
under the equity period
income paid
method
Hotel
Shenzhen
Education Fund
Longhua
Investment
Shenzhen
Kangle Sports
Club Huangfa
Branch
Factory building
in Dankeng
Village, Fumin, 1,168,973.20 1,168,973.20
Guanlan Town,
Shenzhen
Shenzhen
Xiongniu
Bowling 500,000.00 500,000.00
Entertainment
Co., Ltd.
Shenzhen
Yangyuan
Industrial Co.,
Ltd.
Jia Kaifeng
Company
Bao'an
Company
Guiyuan Auto
Repair Plant
Shenzhen
Wuwei Roof
Landscaping
Co., Ltd.
Shenzhen
Yuanping Plastic
Steel Doors and 240,000.00 240,000.00
Windows Co.,
Ltd.
Shenzhen
Youfang Printing
and Distribution
Co., Ltd.
Shenzhen
Lusheng 100,000.00 100,000.00
Industrial
Development
Increase/decrease in this period
Balance of
Beginning Investment profit
Beginning Adjustment of Cash dividends provision for
balance of or loss Ending balance
Investees balance (book other or profits impairment as at
provision for Additional Reduced Changes in Provision for (book value)
value) recognized Others the end of the
impairment investment investment comprehensive other equity declared to be impairment
under the equity period
income paid
method
Co., Ltd.
China
Construction
Engineering
Corporation
Group Smart
Parking
Technology Co.,
Ltd.
Sub-total 30,092,133.32 30,278,931.31 1,890,181.89 115,933.90 31,866,381.31 30,278,931.31
Total 268,187,805.52 30,278,931.31 930,705.77 115,933.90 269,002,577.39 30,278,931.31
The recoverable amount is determined at the net amount of the fair value minus the disposal expenses
□ Applicable ? Not applicable
The recoverable amount is determined based on the present value of the estimated future cash flows
□ Applicable ? Not applicable
Reasons for the obvious inconsistency between the above information and the information used in
previous impairment test or external information
Reasons for the difference between the information used in the impairment test of the Company in
previous years and the actual situation of the current year
Other explanations:
Unit: RMB
Item Ending balance Beginning balance
Other explanations:
(1) Investment properties measured at the cost mode
? Applicable Not applicable
Unit: RMB
Construction in
Item Houses and buildings Land use rights Total
progress
I. Total original book
value
current period
(1) Outsourcing 346,296.42 57,953,240.33 58,299,536.75
(2) Transfer from
inventories, fixed
assets and
construction in
progress
(3) Increase in
business combination
(4) Transfer-in of
houses and buildings
current period
(1) Disposal 11,053,177.03 11,053,177.03
(2) Other transfers out 758,401.73 758,401.73
(3) Transfer to 88,815,555.69 88,815,555.69
construction in
Construction in
Item Houses and buildings Land use rights Total
progress
progress
(4) Exchange
adjustment
II. Accumulated
depreciation and
accumulated
amortization
current period
(1) Provision or
amortization
(2) Transfer-in of
houses and buildings
current period
(1) Disposal 6,890,543.06 6,890,543.06
(2) Other transfers out
(3) Transfer to
construction in 69,634,551.48 69,634,551.48
progress
(4) Exchange
adjustment
III. Provision for
impairment
current period
(1) Provision
current period
(1) Disposal
(2) Other transfers out
IV. Book value
end of the period
beginning of the period
The recoverable amount is determined at the net amount of the fair value minus the disposal expenses
□ Applicable ? Not applicable
The recoverable amount is determined based on the present value of the estimated future cash flows
□ Applicable ? Not applicable
Reasons for the obvious inconsistency between the above information and the information used in
previous impairment test or external information
Reasons for the difference between the information used in the impairment test of the Company in
previous years and the actual situation of the current year
Other explanations:
(2) Investment properties measured by fair value
□ Applicable ? Not applicable
The Company shall comply with the disclosure requirements for the real estate industry as set out in the
Guidelines for Self-Regulation of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry
Information Disclosure
The investment properties measured at fair value are disclosed by item:
Unit: RMB
Reasons
Rental
Fair value The for fair
income
Geographic Time of Gross floor Opening as at the magnitude value
Project during the
al location completion area fair value end of the of fair value changes
reporting
period changes and report
period
index
Whether the Company has investment properties in the construction period in the current period
? Yes No
Investment properties in the construction period in the current period:
Unit: RMB
Commencemen Estimated total Beginning Estimated
Project Location Ending amount
t date investment amount completion time
Guomao Intersection of
Shopping Mall Renmin South
February 25,
renovation and Road and 178,800,000.00 2,472,881.95 79,607,126.49 April 30, 2026
upgrading Jiabin Road,
project Luohu District
Total 178,800,000.00 2,472,881.95 79,607,126.49
Whether the Company has any new investment properties measured at fair value in the current period
Yes ? No
(3) Conversion to investment properties and measurement at fair value
Unit: RMB
Accounting Impact on other
Reason for Approval Impact on profit
Item items before Amount comprehensive
conversion procedure or loss
conversion income
(4) Investment properties without certificate of title
Unit: RMB
Reasons for failure to obtain the
Item Book value
certificate of title
The property is a property
management house, which was
occupied by a third-party property
Unit 507, Building 6, Maguling 20,059.61
management company and has now
been recovered, but the certificate of
title has not been handled
Other explanations:
Unit: RMB
Item Ending balance Beginning balance
Fixed assets 41,751,582.46 52,712,396.64
Disposal of fixed assets
Total 41,751,582.46 52,712,396.64
(1) Fixed assets
Unit: RMB
Buildings and Means of Renovation of Other
Item Its equipment Total
constructions transportation fixed assets equipment
I. Total original
book value:
balance
the current 58,375.55 136,505.02 3,336,603.37 3,531,483.94
period
(1) Purchase 58,375.55 136,505.02 3,336,603.37 3,531,483.94
(2) Transfer
from
construction in
progress
(3) Increase in
business
combination
the current 14,926,812.72 361,818.43 38,778.36 2,520,958.88 17,848,368.39
period
(1) Disposal or
scrapping
(2) Exchange
adjustment
balance
Buildings and Means of Renovation of Other
Item Its equipment Total
constructions transportation fixed assets equipment
II. Accumulated
depreciation
balance
the current 2,043,696.57 646,481.31 1,336,137.78 3,675,313.72 5,628,735.19 13,330,364.57
period
(1) Provision 2,043,696.57 646,481.31 1,336,137.78 3,675,313.72 5,628,735.19 13,330,364.57
the current 13,990,433.66 359,560.34 12,453.10 2,323,987.74 16,686,434.84
period
(1) Disposal or
scrapping
(2) Exchange
adjustment
balance
III. Provision for
impairment
balance
the current
period
(1) Provision
the current
period
(1) Disposal or
scrapping
balance
IV. Book value
as at the end of 24,157,762.25 876,733.60 2,562,417.09 1,203,328.31 12,951,341.21 41,751,582.46
the period
as at the
beginning of
the period
(2) Temporarily idle fixed assets
Unit: RMB
Original book Accumulated Provision for
Item Book value Remark
value depreciation impairment
(3)Fixed assets leased out through operating leases
Unit: RMB
Item Closing book value
(4) Fixed assets without certificate of title
Unit: RMB
Reason for failure to properly handle
Item Book value
the certificate of title
Due to the planning adjustment, the
office buildings of the property will be
demolished, and a new high-rise office
buildings will be built near the existing
Room 401 and 402, Office Building,
Sanxiang Business Building
existing property with the new office
buildings after its completion, so the
property certificate of the property has
not been able to be handled.
Other explanations:
(5) Impairment test of fixed assets
□ Applicable ? Not applicable
(6) Disposal of fixed assets
Unit: RMB
Item Ending balance Beginning balance
Other explanations:
Unit: RMB
Item Ending balance Beginning balance
(1) Construction in progress situation
Unit: RMB
Ending balance Beginning balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
(2) Changes of significant construction in progress in the current period
Unit: RMB
Includin
Ratio of g:
Transfe Accum Interest
Other accumu Capitali
r into ulated capitali
Increas decrea lated Progres zed
Beginni fixed capitali zation
e in the ses in Ending project s of amount
Project Budget ng assets zation rate for Source of funds
current the balance investm constru of
balance in the amount the
period current ent in ction interest
current of current
period budget in the
period interest period
(%) current
period
(3) Provision for impairment of construction in progress in the current period
Unit: RMB
Increase in the Decrease in the Reason for
Item Beginning balance Ending balance
current period current period provision
Other explanations:
(4) Impairment test of construction in progress
□ Applicable ? Not applicable
(5) Project materials
Unit: RMB
Ending balance Beginning balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Other explanations:
(1) Right-of-use assets status
Unit: RMB
Item Buildings and constructions Total
I. Total original book value
(1) New lease 23,990,593.53 23,990,593.53
(1) Termination of leases 31,641,873.91 31,641,873.91
II. Accumulated depreciation
(1) Provision 12,985,495.03 12,985,495.03
(1) Disposal
(2) Termination of leases 26,119,223.19 26,119,223.19
Item Buildings and constructions Total
III. Provision for impairment
(1) Provision
(1) Disposal
IV. Book value
period
the period
(2) Impairment test of right-of-use assets
□ Applicable ? Not applicable
Other explanations:
(1) Intangible assets situation
Unit: RMB
Non-patented Right of use of
Item Land use rights Patent right Total
technology software
I. Total original
book value
balance
current period
(1) Purchase 2,079,646.01 2,079,646.01
(2) Internal R&D
(3) Increase in
business
combination
current period
(1) Disposal
II. Accumulated
accumulation
Non-patented Right of use of
Item Land use rights Patent right Total
technology software
balance
current period
(1) Provision 396,004.78 396,004.78
current period
(1) Disposal
III. Provision for
impairment
balance
current period
(1) Provision
current period
(1) Disposal
IV. Book value
at the end of the 2,155,206.62 2,155,206.62
period
at the beginning of 471,565.39 471,565.39
the period
The ratio of intangible assets formed through the Company's internal research and development to the
balance of intangible assets at the end of the current period is0%.
(2) Data resources recognized as intangible assets
□ Applicable ? Not applicable
(3) Details of land use right without certificate of title
Unit: RMB
Reason for failure to properly handle
Item Book value
the certificate of title
Other explanations:
(4) Impairment test of intangible assets
□ Applicable ? Not applicable
(1) Original book value of goodwill
Unit: RMB
Increase in the current period Decrease in the current period
Name of the
investees or Beginning Amount formed
through Ending balance
matters forming balance Disposal
goodwill business
combination
Shenzhen
Facility
Management 9,446,847.38 9,446,847.38
Community
Co., Ltd.
Total 9,446,847.38 9,446,847.38
(2) Provision for impairment of goodwill
Unit: RMB
Name of the Increase in the current period Decrease in the current period
investees or Beginning
Ending balance
matters forming balance Provision Disposal
goodwill
Shenzhen
Facility
Management 0.00 5,004,983.08 5,004,983.08
Community
Co., Ltd.
Total 0.00 5,004,983.08 5,004,983.08
(3) Relevant information on the asset group or portfolio of asset groups of the goodwill belongs
to
Composition and basis of the
Operating segments and Whether it is consistent with
Name asset group or combination
basis previous years
to which it belongs
Asset group or portfolio of
asset groups that can
independently generate cash
flows determined in
consideration of the
Shenzhen Facility
synergistic effect that can Property management,
Management Community Yes
benefit from the business supporting services
Co., Ltd.
combination and the
management or monitoring
method of the management
on the production operating
activities
Changes in asset group or portfolio of asset groups
Objective facts and basis
Name Composition before change Composition after change
leading to changes
Other explanations
(4) Specific determination method of recoverable amount
The recoverable amount is determined at the net amount of the fair value minus the disposal expenses
□ Applicable ? Not applicable
The recoverable amount is determined based on the present value of the estimated future cash flows
? Applicable Not applicable
Unit: RMB
Basis for
Key Key determination
Recoverable Impairment Years of Parameters for Parameters in of key
Item Book value
amount amount forecast period the Forecast Stabilization parameters in
Period Phase the stabilization
period
Shenzhen
Facility Revenue Confirmation
Management 27,328,251.66 13,028,300.00 14,299,951.66 6 growth rate, No growth based on
Community discount rate caution
Co., Ltd.
Total 27,328,251.66 13,028,300.00 14,299,951.66
Reasons for the obvious inconsistency between the above information and the information used in
previous impairment test or external information
Reasons for the difference between the information used in the impairment test of the Company in
previous years and the actual situation of the current year
(5) Completion of performance commitment and corresponding goodwill impairment
There is a performance commitment when the goodwill is formed and the reporting period or the
previous period of the reporting period is within the performance commitment period
□Applicable □Not applicable
Other explanations:
In May 2021, the Company's subsidiary, Shenzhen Wuhu Industry Investment and Development Co.,
Ltd. (Wuhe Industry Investment and Development for short), acquired 35% of the equity of Shenzhen
Facility Management Community Co., Ltd. (Facility Management Community for short or the Target
Company) through equity acquisition and targeted capital increase. According to the equity acquisition
cooperation framework agreement signed by the Wuhe Industry Investment and Development and the
original shareholders, the Facility Home and its original shareholders promised that the operating
revenue growth ratio or net profit of the target company from 2021 to 2023 would reach the target value
agreed in the agreement, and the Wuhe Industry Investment and Development would assess its
operating performance within three years. As of the reporting date, the performance assessment has
not been completed, so its completion cannot be evaluated temporarily.
According to the goodwill impairment test results, the recoverable amount was RMB 14,299,951.66
lower than its carrying amount, and the Company made a provision for goodwill impairment of RMB
Unit: RMB
Amount amortized
Increase in the
Item Beginning balance in the current Other decreases Ending balance
current period
period
Renovation costs 22,110,090.13 1,557,894.09 8,616,446.00 4,755.15 15,046,783.07
Total 22,110,090.13 1,557,894.09 8,616,446.00 4,755.15 15,046,783.07
Other explanations:
(1) Deferred tax assets without offset
Unit: RMB
Ending balance Beginning balance
Item Deductible temporary Deductible temporary
Deferred tax assets Deferred tax assets
differences differences
Provision for asset
impairment
Unrealized profits of
internal transactions
Deductible losses 219,911,499.79 54,427,860.61 1,152,203,588.06 287,259,758.96
Land value increment
tax withdrawn for 9,308,029.13 2,327,007.28 3,171,733,686.94 792,933,421.74
deduction
Estimated profit
calculated from pre-
sale revenue of real
estate enterprises
Other accrued
expenses
Lease liabilities 23,500,918.43 5,749,024.66 19,127,482.59 4,531,157.25
Total 863,629,168.82 212,669,324.77 4,935,428,496.47 1,232,152,522.89
(2) Deferred tax liabilities without offset
Unit: RMB
Ending balance Beginning balance
Item Taxable temporary Taxable temporary
Deferred tax liabilities Deferred tax liabilities
differences differences
Book value of fixed
assets is greater than 177,411.22 44,352.79 440,912.20 110,228.04
tax basis
Right-of-use assets 22,450,067.85 5,486,520.49 16,972,012.51 3,989,936.31
Changes in fair value
of financial assets held 1,765,714.20 441,428.55
for trading
Total 24,393,193.27 5,972,301.83 17,412,924.71 4,100,164.35
(3) Deferred tax assets or liabilities listed net amount after write-offs
Unit: RMB
Deduction amount of Deduction amount of
Ending balance of Beginning balance of
deferred tax assets deferred tax assets
Item deferred tax assets or deferred tax assets or
and liabilities at the and liabilities from the
liabilities after write-off liabilities after write-off
end of the period beginning of the period
Deferred tax assets 212,669,324.77 1,232,152,522.89
Deferred tax liabilities 5,972,301.83 4,100,164.35
(4) Details of unconfirmed deferred tax assets
Unit: RMB
Item Ending balance Beginning balance
Deductible temporary differences 1,751,240,859.68 1,666,771,094.64
Deductible losses 366,903,018.00 321,157,984.91
Total 2,118,143,877.68 1,987,929,079.55
(5) Deductible losses from unrecognized deferred tax assets will be expired in the following
years
Unit: RMB
Year Ending amount Beginning amount Remark
Total 366,903,018.00 321,157,984.91
Other explanations:
Unit: RMB
Ending balance Beginning balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Cost of contract
acquisition
Prepayments
for the
purchase of
fixed assets,
investment
properties,
intangible
assets, etc.
Others 2,635,093.77 2,635,093.77 2,635,093.77 2,635,093.77
Total 25,657,943.53 25,657,943.53 13,875,501.61 13,875,501.61
Other explanations:
Others, mainly the written-down assets of investment properties, because the asset involves the
relocation business of the shantytown redevelopment in Chuanbu Street, which will be handed over
later, with a term of more than one year.
Unit: RMB
Ending Beginning
Item Restricted Restricted Restricted Restricted
Book balance Book value Book balance Book value
type condition type condition
Guarantee, Guarantee,
deposit, time deposit, time
deposit deposit
Monetary
funds
judicially judicially
frozen funds, frozen funds,
etc. etc.
Due to the
needs of daily
operating
activities, the
Company
applied for a
Inventories 4,839,083.09 4,839,083.09 Mortgage loan from
bank, and
mortgaged the
self-owned
commercial
properties it
held.
Due to the
needs of daily
operating
activities, the
Company
applied for a
Fixed assets 3,483,700.15 3,483,700.15 Mortgage loan from
bank, and
mortgaged the
self-owned
commercial
properties it
held.
Due to the Due to the
needs of daily needs of daily
operating operating
activities, the activities, the
Company Company
applied for a applied for a
Inventories - loan from loan from
Land use right 424,356,240.0 424,356,240.0 Industrial 401,867,324.0 401,867,324.0 Industrial
Mortgage Mortgage
of Lake City 0 0 Bank 0 0 Bank
Project plot Shenzhen Shenzhen
Branch, and Branch, and
mortgaged the mortgaged the
land use right land use right
of the Lake of the Lake
City Project City Project
plot it held. plot it held.
Due to the Due to the
Inventories - needs of daily needs of daily
Land use right operating operating
of Plots B and activities, the activities, the
D of Company Company
Shenyang applied for a applied for a
Digital Mortgage Mortgage
Intelligent City
Project and Bank of China Bank of China
Plot D Yangzhou Yangzhou
construction in Branch, and Branch, and
progress mortgaged the mortgaged the
land use right land use right
of Plot D of of Plot D of
Ending Beginning
Item Restricted Restricted Restricted Restricted
Book balance Book value Book balance Book value
type condition type condition
Shenyang Shenyang
Digital Smart Digital Smart
City Project City Project
and the and the
construction in construction in
progress of progress of
Plots B and D. Plot D.
Due to the
needs of daily
operating
activities, the
Company
applied for a
Investment 180,144,668.7 180,144,668.7
Mortgage loan from
properties 0 0
bank, and
mortgaged the
self-owned
commercial
properties it
held.
Total
.02 .76 1 8
Other explanations:
(1) Classification of short-term borrowings
Unit: RMB
Item Ending balance Beginning balance
Credit borrowings 449,458,211.11 190,165,458.33
Total 449,458,211.11 190,165,458.33
Description of short-term borrowings classification:
At the end of the period, the credit loans were used for the daily operations of the Company's
subsidiaries.
(2) Unpaid short-term borrowings in maturity
The total amount of overdue and outstanding short-term borrowings at the end of the current period is
RMB 0.00, of which the important overdue and outstanding short-term borrowings are as follows:
Unit: RMB
Borrower Ending balance Borrowing interest rate Overdue time Overdue interest rate
Other explanations:
Unit: RMB
Item Ending balance Beginning balance
Including:
Including:
Other explanations:
Unit: RMB
Item Ending balance Beginning balance
Other explanations:
Unit: RMB
Category Ending balance Beginning balance
The total amount of notes payable due but not paid at the end of the current period is RMB, and the
reason for the non-payment is.
(1) Presentation of accounts payable
Unit: RMB
Item Ending balance Beginning balance
Payable for engineering construction 738,732,120.83 876,393,730.22
Estimated accounts payable 19,087,563.43 27,094,771.04
Others 117,823,268.42 139,603,776.01
Total 875,642,952.68 1,043,092,277.27
(2) Significant accounts payable aging more than one year or overdue
Unit: RMB
Reason for no settlement or carrying-
Item Ending balance
forward
Shenzhen Municipal Bureau of
Planning and Land Resources
China Construction Third Engineering
The project payment milestone has not
Bureau Second Construction 116,829,310.75
been reached
Engineering Co., Ltd
China Construction Fourth Engineering The project payment milestone has not
Bureau Co., Ltd been reached
Shenzhen Qianhai Advanced
Information Service Co., Ltd.
Total 152,955,370.85
Other explanations:
(3) Whether there are any overdue payments to small and medium-sized enterprises
Whether it is a large enterprise
? Yes No
Whether there are any overdue payments to small and medium-sized enterprises
Yes ? No
Unit: RMB
Item Ending balance Beginning balance
Dividends payable 12,202,676.04 12,202,676.04
Other payables 1,189,285,081.42 1,219,148,760.34
Total 1,201,487,757.46 1,231,351,436.38
(1) Interest payable
Unit: RMB
Item Ending balance Beginning balance
Important overdue and unpaid interest situations:
Unit: RMB
Borrower Overdue amount Reason for overdue
Other explanations:
(2) Dividends payable
Unit: RMB
Item Ending balance Beginning balance
Ordinary shares dividends 12,202,676.04 12,202,676.04
Total 12,202,676.04 12,202,676.04
Other notes, including important dividends payable that have not been paid for more than 1 year, shall
disclose the reasons for non-payment:
Name of shareholder Amount of dividends payable Reason for non-payment
The other party's company is
Shenzhen Urban Landscaping
Management Office
has not been clarified
The other party's company is
Labor Union Committee of Shenzhen
Urban Landscaping Administration
has not been clarified
Unable to obtain the balance payment
Others 33,639.36
of the other party's account and unpaid
Total 12,202,676.04
(3) Other payable
Unit: RMB
Item Ending balance Beginning balance
Deposit 311,614,608.93 308,200,904.93
Guarantee 8,171,499.69 9,248,840.93
Agency collection 12,112,575.50 4,743,853.11
Current accounts 642,819,185.60 651,960,088.72
Accrued expenses 123,654,014.77 148,017,114.40
Withholding payments 6,505,391.90 7,494,625.63
Others 84,407,805.03 89,483,332.62
Total 1,189,285,081.42 1,219,148,760.34
Unit: RMB
Reason for no settlement or carrying-
Item Ending balance
forward
Amounts due from related parties
Yangzhou Tourism Development
Property Co., Ltd.
yet due for repayment
Current accounts, without specific
Shenzhen Jifa Warehousing Co., Ltd. 202,296,665.14
repayment period
China Construction Third Engineering
The deposit has not reached the
Bureau Second Construction 21,597,500.00
settlement period
Engineering Co., Ltd
Shenzhen Qianhai WeBank Co., Ltd. 6,868,109.47 The lease term has not expired
Shenzhen Tian'an International
Current accounts, without specific
Building Property Management Co., 5,214,345.90
repayment period
Ltd.
Total 581,905,919.30
Other explanations:
(1) Presentation of advances from customers
Unit: RMB
Item Ending balance Beginning balance
Rent 1,340,490.69 1,744,526.75
Total 1,340,490.69 1,744,526.75
(2) Important advances from customers with aging more than 1 year or overdue
Unit: RMB
Reason for no settlement or carrying-
Item Ending balance
forward
Unit: RMB
Item Changes Reason for changes
Unit: RMB
Item Ending balance Beginning balance
House payment received in advance 647,550,778.18 266,400,127.35
Property management fees received in
advance
Other accounts received in advance 45,939,712.37 49,144,735.10
Total 711,605,295.76 336,164,629.72
Significant contract liabilities with aging over 1 year
Unit: RMB
Reason for no settlement or carrying-
Item Ending balance
forward
Advances from customers for Lake The conditions for revenue recognition
City Project have not yet been met
Total 210,715,772.65
Amount and reasons for significant changes in book value during the reporting period
Unit: RMB
Item Changes Reason for changes
The Company shall comply with the disclosure requirements for the real estate industry as set out in the
Guidelines for Self-Regulation of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry
Information Disclosure
Payment information for the top five pre-sale projects:
Unit: RMB
Estimated
No. Project Beginning balance Ending balance Pre sale ratio
completion time
September 10,
Yangzhou
Shenyang Digital
Intelligent City
Project
Humen Binhai
Harbor Project
SZPRD · Yutang
Shangfu
SZPRD · Lakeside
II
(1) Presentation of employee compensation payable
Unit: RMB
Increase in the current Decrease in the
Item Beginning balance Ending balance
period current period
I. Short-term
compensation
II. Post-employment 1,542,959.24 98,153,688.30 98,626,139.56 1,070,507.98
benefits-defined
contribution plans
III. Dismissal benefits 283,373.22 2,453,122.60 2,089,689.58 646,806.24
Total 207,978,691.61 937,009,001.34 969,164,571.32 175,823,121.63
(2) Presentation of short-term compensation
Unit: RMB
Increase in the current Decrease in the
Item Beginning balance Ending balance
period current period
allowances and 192,745,116.57 734,355,451.18 764,772,795.98 162,327,771.77
subsidies
premiums
Including: medical
insurance premiums
Work-related injury
insurance premiums
Maternity insurance
premiums
funds
and employee 7,371,886.27 15,173,208.27 15,421,234.31 7,123,860.23
education expenses
benefits
Total 206,152,359.15 836,402,190.44 868,448,742.18 174,105,807.41
(3) Presentation of defined contribution plans
Unit: RMB
Increase in the current Decrease in the
Item Beginning balance Ending balance
period current period
insurance premiums
insurance premiums
payment
Total 1,542,959.24 98,153,688.30 98,626,139.56 1,070,507.98
Other explanations:
Unit: RMB
Item Ending balance Beginning balance
Value-added tax 23,455,423.34 21,171,620.44
Consumption tax 6,291.87 0.00
Corporate income tax 31,087,464.90 21,591,154.75
Individual income tax 2,955,720.79 4,310,388.69
Urban maintenance and construction
tax
Land value increment tax 17,066,510.13 3,173,186,258.33
Land use taxes 179,653.49 179,847.49
Property taxes 311,746.28 396,616.98
Education surcharge 696,993.06 684,508.74
Local education surcharges 531,972.41 530,482.69
Others 392,104.82 908,828.94
Total 78,010,841.03 3,224,280,429.52
Other explanations:
Unit: RMB
Item Ending balance Beginning balance
Other explanations:
Unit: RMB
Item Ending balance Beginning balance
Long-term borrowings maturing within
one year
Bonds payable due within one year 1,054,166.67
Long-term payables due within one
year
Lease liabilities maturing within one
year
Total 3,865,235,312.29 506,702,676.30
Other explanations:
Unit: RMB
Item Ending balance Beginning balance
Output tax to be transferred 58,886,145.36 23,186,263.57
Total 58,886,145.36 23,186,263.57
Increases or decreases in short-term bonds payable:
Unit: RMB
Wheth
Amorti
er
Withdr zation Repay
Nomin Beginn Issued there
Issue awal of of ment Ending
Bond Book al Issue Bond ing in the is
Amoun interes premiu in the balanc
name value interes date term balanc current breach
t t at par m and current e
t rate e period of
value discou period
contra
nt
ct
Total
Other explanations:
(1) Classification of long-term borrowings
Unit: RMB
Item Ending balance Beginning balance
Pledged loan 664,188,100.66 151,915,696.00
Mortgage loan 2,062,569,870.34 4,424,348,935.26
Credit borrowings 954,836,941.20 179,050,000.00
Total 3,681,594,912.20 4,755,314,631.26
Description of the classification of long-term borrowings:
The pledged loan (1) at the end of the period was used for the acquisition of 100% equity of five
property management companies, Shenzhen Property Management Co., Ltd., Shenzhen Foreign Trade
Property Management Co., Ltd., Shenzhen Shenfubao Property Development Co., Ltd., Shenzhen
Shenfubao Municipal Service Co., Ltd. and Shenzhen Bonded Zone Security Service Co., Ltd. by the
subsidiary of the Company, Shenzhen International Trade Center Property Management Co., Ltd. The
term of loan is from May 18, 2022 to April 26, 2027, and the pledge is 100% equity of the five
companies held by Shenzhen International Trade Center Property Management Co., Ltd.
The pledge loan (2) at the end of the period was used for the development of the Humen Harbour
Palace Project of the Company's subsidiary Dongguan Wuhe Real Estate Co., Ltd. (hereinafter referred
to as Dongguan Wuhe). The term of loan was from August 5, 2022 to August 5, 2027. The pledge was
all the receivables of Dongguan Wuhe in the next five years.
The mortgage loan (1) at the end of the period was used for the development of the Lake City project of
Shenzhen Rongyao Real Estate Development Co., Ltd. (hereinafter referred to as Rongyao Real
Estate), a subsidiary of the Company. The term of loan was from November 29, 2019 to November 20,
Company provided joint and several liability guarantee.
The mortgage loan (2) at the end of the period was used for the development of Lake City Project of
Rongyao Real Estate, a subsidiary of the Company. The term of loan was from March 17, 2023 to
March 30, 2026. The collateral was the land use right of Lake City Project held by Rongyao Real Estate,
the Company provided the joint and several liability guarantee provided by the Company, and a pledge
guarantee of 69% of the equity of Rongyao Real Estate held by the Company.
The mortgage loan (3) at the end of the period was used for the development of Shenyang Digital
Intelligent City Project of Yangzhou Wuhe Real Estate Co., Ltd. (hereinafter referred to as Yangzhou
Wuhe), a subsidiary of the Company. The term of loan was from January 19, 2024 to January 19, 2029.
The collateral was the land use right of Plot D of Shenyang Digital Intelligent City Project and the
construction in progress of Plot D held by Yangzhou Wohui, and joint and several liability guarantee
was provided by the Company and Yangzhou Lvfa Real Estate Co., Ltd. according to the percentage of
shares.
The mortgage loan (4) at the end of the period was used for the Company's daily operations. The loan
term is from May 30, 2025 to May 29, 2027, and the collateral is the Company's own commercial
property assets.
The mortgage loan (5) at the end of the period was used for the development of Shenyang Digital
Intelligent City Project of Yangzhou Wuhe, a subsidiary of the Company. The term of loan was from
June 30, 2025 to December 20, 2027. The collateral was the land use right of Plot B of Shenyang
Digital Intelligent City Project held by Yangzhou Wuhe, and joint and several liability guarantee was
provided by the Company and Yangzhou Lvfa Real Estate Co., Ltd. according to the percentage of
shares.
The mortgage loan (6) at the end of the period was used for the daily operations of Shenzhen
International Trade Center Property Management Co., Ltd., a subsidiary of the Company. The loan term
is from August 12, 2025 to August 12, 2028, and the collateral is part of the commercial assets held by
the Company.
The mortgage loan (7) at the end of the period was used for the Company's daily operations. The loan
term is from August 29, 2025 to August 28, 2028, and the collateral is the Company's own commercial
property assets.
At the end of the period, the credit loans were used for the Company to repay loans from the related
companies and for the daily operations of its subsidiaries.
Other explanations, including interest rate range:
(1) Bonds payable
Unit: RMB
Item Ending balance Beginning balance
Bonds payable 548,187,500.00 0.00
Interest payable on bonds not yet due 1,103,317.25
Less: Bonds payable due within one
-1,054,166.67
year
Total 548,236,650.58 0.00
(2) Increase or decrease in bonds payable (excluding preferred shares, perpetual bonds and
other financial instruments classified as financial liabilities)
Unit: RMB
Amortizati
Issued in Withdraw Repayme Whether
Nominal on of
Bond Book Issue Bond Issue Beginning the al of nt in the Ending there is
interest premium
name value date term Amount balance current interest at current balance breach of
rate and
period par value period contract
discount
SZPRD
(134664.
SZ)
Total —— ——
(3) Description of convertible corporate bonds
(4) Description of other financial instruments classified as financial liabilities
Changes of outstanding financial instruments such as preferred shares and perpetual bonds at the
period-end
Table of changes of outstanding financial instruments such as preferred shares and perpetual bonds at
the period-end
Unit: RMB
Outstandin Increase in the current Decrease in the current
Beginning Ending
g financial period period
instruments Number Book value Number Book value Number Book value Number Book value
Description of the basis for classifying other financial instruments as financial liabilities
Other explanations:
Unit: RMB
Item Ending balance Beginning balance
Lease payments 24,820,172.10 21,312,666.88
Less: Unrecognized financing
-1,319,253.70 -2,180,791.76
expenses
Less: Lease liability maturing within
-12,898,090.94 -8,042,802.55
one year
Total 10,602,827.46 11,089,072.57
Other explanations:
Unit: RMB
Item Ending balance Beginning balance
Long-term payables 399,470,977.78 399,749,550.00
Total 399,470,977.78 399,749,550.00
(1) Presentation of long-term payables by nature of payment
Unit: RMB
Item Ending balance Beginning balance
Sale and leaseback financing funds 399,870,977.78 400,149,550.00
Less: Long-term payables due within
-400,000.00 -400,000.00
one year
Total 399,470,977.78 399,749,550.00
Other explanations:
The long-term payables at the period-end were the sale and leaseback financing between the Company
and Maxwealth Financial Leasing Co., Ltd., with the lease term from December 22, 2023 to December
(2) Special payables
Unit: RMB
Increase in the Decrease in the
Item Beginning balance Ending balance Formation causes
current period current period
Other explanations:
(1) Statement of long-term employee compensations payable
Unit: RMB
Item Ending balance Beginning balance
(2) Changes in defined benefit plans
Present value of defined benefit plan obligations:
Unit: RMB
Item Amount in the current period Amount in the previous period
Plan assets:
Unit: RMB
Item Amount in the current period Amount in the previous period
Net liabilities (net assets) under defined benefit plans
Unit: RMB
Item Amount in the current period Amount in the previous period
Description of the content of the defined benefit plans and the risks associated with it, and the impact
on the Company's future cash flows, time and uncertainty:
Description of major actuarial assumptions and sensitivity analysis results of defined benefit plans:
Other explanations:
Unit: RMB
Item Ending balance Beginning balance Formation causes
①Litigation between
Basepoint and Facility
Management Community
Pending litigation 973,741.21 934,205.51
② Litigation between CPIC
Shenzhen Branch and
SZPRD
Total 973,741.21 934,205.51
Other explanations, including relevant important assumptions and estimation notes of important
estimated liabilities:
Unit: RMB
Increase in the Decrease in the
Item Beginning balance Ending balance Formation causes
current period current period
Other explanations:
Unit: RMB
Item Ending balance Beginning balance
Special fund for public utilities 317,468.53 537,155.06
Building structure maintenance fund 21,286,236.28 14,746,480.42
Guarantee for admission 6,553,718.18 6,660,398.31
Electrical equipment maintenance fund 4,019,415.44 4,019,415.44
Escrow maintenance fund 53,885,658.86 52,435,075.20
Co-investment capital from
Guanlanbuling Project's employees
Others 3,908,000.31 8,521,004.59
Total 129,540,497.60 126,919,529.02
Other explanations:
Unit: RMB
Changes during the period (+, -)
Beginning Conversion Ending
balance New shares of provident balance
Bonus issue Others Sub-total
issued fund into
shares
Total shares
Other explanations:
(1) Changes of outstanding financial instruments such as preferred shares and perpetual bonds
at the period-end
(2) Table of changes of outstanding financial instruments such as preferred shares and
perpetual bonds at the period-end
Unit: RMB
Outstandin Increase in the current Decrease in the current
Beginning Ending
g financial period period
instruments Number Book value Number Book value Number Book value Number Book value
Changes of other equity instruments in the current period, explanation of the reasons for the changes,
and the basis for relevant accounting treatment:
Other explanations:
Unit: RMB
Increase in the current Decrease in the
Item Beginning balance Ending balance
period current period
Other capital reserves 80,488,045.38 80,488,045.38
Total 80,488,045.38 80,488,045.38
Other explanations, including the increase and decrease in the current period and the reasons for the
changes:
Unit: RMB
Increase in the current Decrease in the
Item Beginning balance Ending balance
period current period
Other explanations, including the increase and decrease in the current period and the reasons for the
changes:
Unit: RMB
Amount in the current period
Less: the Less: retained
amount income
included in included in
other other
Beginning Amount Attributable to Attributable to Ending
Item comprehensiv comprehensiv
balance before income Less: income parent minority balance
e income in e income in
tax in the tax expenses company after shareholders
prior period prior periods
current period tax after tax
and and
transferred to transferred to
current profit current profit
or loss or loss
I. Other
comprehensiv
e income that
cannot be -3,064,972.70 -4,277.54 -4,277.54 -3,069,250.24
reclassified
into profit or
loss
Fair value
changes of
investments in -3,064,972.70 -4,277.54 -4,277.54 -3,069,250.24
other equity
instruments
II. Other
comprehensiv
e income to
be reclassified
into profit or
loss later
Foreign
currency
translation
differences
Total of other
comprehensiv -2,200,355.67 -1,387,438.28 -1,387,438.28 -3,587,793.95
e income
Other explanations, including the adjustment of the effective portion of the profit or loss of the cash
flows hedge to the initial recognized amount of the hedged item:
Unit: RMB
Increase in the current Decrease in the
Item Beginning balance Ending balance
period current period
Other explanations, including the increase and decrease in the current period and the reasons for the
changes:
Unit: RMB
Increase in the current Decrease in the
Item Beginning balance Ending balance
period current period
Statutory surplus
reserve
Discretionary surplus
reserve
Total 125,425,488.21 172,929,460.92 298,354,949.13
Explanations of the surplus reserve, including the changes in the current period and the reasons for the
changes:
Unit: RMB
Item Current period Previous period
Retained earnings as at the end of the
previous period before the adjustment
Undistributed profits at the beginning of
the period after adjustment
Plus: Net profit attributable to owners
of the parent company in this period
Less: Withdrawal of statutory surplus
reserves
Common stock dividends payable 185,945,476.70
Others -753,051.55 568,863.59
Undistributed profits as at the end of
the period
Details of adjustment to undistributed profits as at the beginning of the period:
related new regulations, the opening undistributed profits was RMB.
profits was RMB.
Details of using capital reserves to cover losses:
Unit: RMB
Amount in the current period Amount in the previous period
Item
Revenue Cost Revenue Cost
Primary business 2,292,305,065.27 1,732,825,933.72 2,670,640,573.12 2,249,277,554.33
Other business 90,983,184.75 4,332,788.02 63,518,310.93 736,534.00
Total 2,383,288,250.02 1,737,158,721.74 2,734,158,884.05 2,250,014,088.33
The lowest of the Company's audited total profit, net profit, and net profit attributable to the listed
company’s shareholders after exceptional gains and losses during the reporting period was negative.
? Yes No
Unit: RMB
Item Current year Specific deductions Previous year Specific deductions
Amount of operating 2,383,288,250.02 Deduct the business 2,734,158,884.05 Deduct the business
Item Current year Specific deductions Previous year Specific deductions
revenue revenues that are not revenues that are not
related to the main related to the main
business, which are business, which are
mainly the temporary mainly the temporary
resettlement resettlement
compensation compensation
revenues from the revenues from the
shed renovation shed renovation
project on Chuanbu project on Chuanbu
Street, the revenue Street, the demolition
from the disposal of compensation
investment properties, revenues of Fengherili,
and the consulting and the consulting
service revenues. service revenues.
Deduct the business Deduct the business
revenues that are not revenues that are not
related to the main related to the main
business, which are business, which are
mainly the temporary mainly the temporary
resettlement resettlement
Total amount of compensation compensation
operating revenue 90,983,184.75 revenues from the 63,518,310.93 revenues from the
deduction items shed renovation shed renovation
project on Chuanbu project on Chuanbu
Street, the revenue Street, the demolition
from the disposal of compensation
investment properties, revenues of Fengherili,
and the consulting and the consulting
service revenues. service revenues.
Proportion of total
amount of operating
revenue deduction 3.82% 2.32%
items in operating
revenue
I. Business revenue
not related to the main
business
revenue other than
normal operations. For
Deduct the business Deduct the business
example, the revenue
revenues that are not revenues that are not
realized from the lease
related to the main related to the main
of fixed assets,
business, which are business, which are
intangible assets,
mainly the temporary mainly the temporary
packaging materials,
resettlement resettlement
sales of materials,
compensation compensation
exchange of non-
monetary assets with
shed renovation shed renovation
materials, entrusted
project on Chuanbu project on Chuanbu
management
Street, the revenue Street, the demolition
business, etc., and the
from the disposal of compensation
income that is included
investment properties, revenues of Fengherili,
in the income from
and the consulting and the consulting
primary business but
service revenues. service revenues.
is not part of the
normal operation of
the listed company.
Deduct the business Deduct the business
Subtotal of business revenues that are not revenues that are not
revenue not related to 90,983,184.75 related to the main 63,518,310.93 related to the main
main business business, which are business, which are
mainly the temporary mainly the temporary
Item Current year Specific deductions Previous year Specific deductions
resettlement resettlement
compensation compensation
revenues from the revenues from the
shed renovation shed renovation
project on Chuanbu project on Chuanbu
Street, the revenue Street, the demolition
from the disposal of compensation
investment properties, revenues of Fengherili,
and the consulting and the consulting
service revenues. service revenues.
II. Revenue without
commercial substance
Subtotal of revenue
without commercial 0.00 No deductions in 2025 0.00 No deductions in 2024
substance
III. Other revenue not
related to the main
business or without
commercial substance
Deduct the business Deduct the business
revenues that are not revenues that are not
related to the main related to the main
business, which are business, which are
mainly the temporary mainly the temporary
resettlement resettlement
compensation compensation
Operating revenue
after deduction
shed renovation shed renovation
project on Chuanbu project on Chuanbu
Street, the revenue Street, the demolition
from the disposal of compensation
investment properties, revenues of Fengherili,
and the consulting and the consulting
service revenues. service revenues.
Breakdown of operating revenue and operating costs:
Unit: RMB
Division 1 Division 2 Total
Contract
classification Operating Operating Operating Operating Operating Operating Operating Operating
revenue costs revenue costs revenue costs revenue costs
Business 2,383,288,2 2,734,158,8 2,383,288,2 2,734,158,8
type 50.02 84.05 50.02 84.05
Including:
Real estate
.30 .15 .30 .15
Property
managemen
t
Asset 179,189,706 81,813,841. 179,189,706 81,813,841.
operation .94 32 .94 32
Classificatio
n by
business
area
Including:
Division 1 Division 2 Total
Contract
classification Operating Operating Operating Operating Operating Operating Operating Operating
revenue costs revenue costs revenue costs revenue costs
Shenzhen 1,971,201,6 1,357,559,8 1,971,201,6 1,357,559,8
area 05.30 53.21 05.30 53.21
Other areas
.72 .53 .72 .53
Market or
customer
type
Including:
Contract
type
Including:
Classificatio
n by time of
commodity
transfer
Including:
Classificatio
n by
contract
period
Including:
Classificatio
n by sales
channel
Including:
Total
Information related to performance obligations:
Amounts Types of quality
Nature of the
Whether it is assumed by the assurance
Time to fulfill goods the
Important the main Company that provided by the
Item performance Company
payment terms responsible are expected to Company and
obligations undertakes to
person be refunded to related
transfer
customers obligations
Other explanations
Information related to the transaction prices allocated to the remaining performance obligations:
The amount of revenue corresponding to the performance obligations that had been signed but not yet
performed or not yet completed at the end of the reporting period was RMB711,605,295.76, of which
RMB118,980,813.13 was expected to be recognized as revenue in 2026, RMB591,572,314.95 was
expected to be recognized as revenue in 2027, and RMB1,052,167.68 was expected to be recognized
as revenue in 2028 and thereafter.
Information about the variable consideration in the contract:
Major contract change or major transaction prices adjustment of parent company
Unit: RMB
Item Accounting treatments Amount of impact on revenue
Other explanations:
The Company shall comply with the disclosure requirements for the real estate industry as set out in the
Guidelines for Self-Regulation of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry
Information Disclosure
Information on the top five items in terms of revenue recognized during the reporting period:
Unit: RMB
No. Project Income amount
Unit: RMB
Item Amount in the current period Amount in the previous period
Consumption tax 6,291.87
Urban maintenance and construction
tax
Education surcharge 2,342,021.57 1,906,313.24
Property taxes 10,577,341.65 10,869,473.40
Land use taxes 2,171,596.35 2,135,524.88
Local education surtax 1,511,980.24 1,271,801.53
Land value increment tax 97,810,077.36 64,009,266.08
Other taxes 2,951,060.82 2,296,727.51
Total 122,579,049.67 86,911,950.69
Other explanations:
Unit: RMB
Item Amount in the current period Amount in the previous period
Employee compensation 186,414,398.29 214,830,675.48
Administrative office expenses 7,012,475.87 22,204,967.59
Amortization and depreciation cost of
assets
Litigation costs 1,149,616.30 808,759.23
Others 22,780,874.82 19,625,121.01
Total 237,736,204.21 284,433,101.74
Other explanations:
Unit: RMB
Item Amount in the current period Amount in the previous period
Intermediary agency fees 29,725,284.46 9,576,621.10
Consulting and sales service fees 3,326,938.58 7,170,279.84
Advertising and publicity expenses 4,573,754.26 8,545,172.46
Employee compensation 14,361,929.61 10,375,132.31
Others 12,529,228.90 8,328,779.70
Total 64,517,135.81 43,995,985.41
Other explanations:
Unit: RMB
Item Amount in the current period Amount in the previous period
Employee compensation 4,714,388.56 4,816,649.05
Depreciation and amortization cost 27,532.62 28,482.42
Others 100,501.10 506,676.97
Total 4,842,422.28 5,351,808.44
Other explanations:
Unit: RMB
Item Amount in the current period Amount in the previous period
Interest expenses 123,346,936.11 68,401,770.57
Interest income -13,758,946.05 -31,389,808.25
Profit or loss on exchange 98,842.17 778,902.74
Service fee and others 4,045,670.13 3,252,783.69
Total 113,732,502.36 41,043,648.75
Other explanations:
Unit: RMB
Source of other income Amount in the current period Amount in the previous period
Government subsidies related to
revenue
Refund of service fee for withholding
individual income tax
Additional deduction of value-added
-80,226.78 -834,439.22
tax input
Refund of value-added tax 846,762.80 2,021,797.08
Total 14,445,679.86 4,561,713.55
Unit: RMB
Item Amount in the current period Amount in the previous period
Other explanations:
Unit: RMB
Sources of gains from changes in fair
Amount in the current period Amount in the previous period
value
Financial assets held for trading 1,765,714.20 0.00
Total 1,765,714.20 0.00
Other explanations:
Unit: RMB
Item Amount in the current period Amount in the previous period
Long-term equity investment income
calculated under the equity method
Investment income from disposal of
long-term equity investments
Gain on restructuring of debt -54,026.93
Total 930,705.77 185,619,483.06
Other explanations:
Unit: RMB
Item Amount in the current period Amount in the previous period
Losses from bad debts of accounts
-403,131.70 -9,475,193.14
receivable
Bad debt loss of other receivables -6,894,523.64 -353,613,204.14
Total -7,297,655.34 -363,088,397.28
Other explanations:
Unit: RMB
Item Amount in the current period Amount in the previous period
I. Inventories depreciation loss and
contract performance cost impairment -2,859.74 -1,036,113,360.07
losses
X. Losses from impairment of goodwill -5,004,983.08 0.00
Total -5,007,842.82 -1,036,113,360.07
Other explanations:
Unit: RMB
Source of gains from disposal of
Amount in the current period Amount in the previous period
assets
Gains on disposal of fixed assets ("-"
for losses)
Gains on disposal of right-of-use
assets ("-" for losses)
Total 144,737.35 87,845.86
Unit: RMB
Amount included in the
Amount in the previous
Item Amount in the current period current non-recurring profit
period
or loss
Gains from exchange of non-
monetary assets
Confiscated income 12,744,961.31 544,705.46 12,744,961.31
Gains from unclaimed
payables
Others 742,319.20 522,860.11 742,319.20
Total 15,699,075.70 1,067,805.57 15,699,075.70
Other explanations:
Unit: RMB
Amount included in the
Amount in the previous
Item Amount in the current period current non-recurring profit
period
or loss
Losses from exchange of
non-monetary assets
Donations made 8,000.00
Litigation expenses 1,879,644.55
Extraordinary losses 167,812.70 4,000.00 167,812.70
Penalties and late fees 275,497.83 372,270.64 275,497.83
Others 958,754.13 5,904,708.99 958,754.13
Total 1,690,452.81 8,355,964.49 1,690,452.81
Other explanations:
(1) Income tax expenses schedule
Unit: RMB
Item Amount in the current period Amount in the previous period
Income tax expenses for the current
period
Deferred tax expenses 54,917,126.01 42,525,748.58
Total 117,018,828.20 93,331,151.00
(2) Adjustment process of accounting profits and income tax expenses
Unit: RMB
Item Amount in the current period
Total profits 121,712,175.86
Income tax expenses calculated at statutory/applicable tax
rate
Influence of different tax rates applicable to subsidiaries -1,850,420.90
Influence of adjustments to the income tax for the prior
years
Influence of non-taxable income -232,676.44
Influence of nondeductible costs, expenses and losses 1,121,121.88
Influence of deductible losses on the use of preliminarily
-13,193,080.98
unrecognized deferred tax assets in previous periods
Effect of deductible temporary differences or deductible
losses from deferred tax assets unrecognized in the current 98,335,240.56
period
Tax impact of the addition for the deduction of R&D
-726,363.34
expenses ("-" for losses)
Income tax expenses 117,018,828.20
Other explanations:
For details, see Note VII. 55.
(1) Cash related to operating activities
Other cash received related to operating activities
Unit: RMB
Item Amount in the current period Amount in the previous period
Large current accounts received 48,515,441.84 278,508,648.94
Interest income received 13,703,905.69 40,033,974.92
Net amount of various deposits,
guarantees and special funds received
Item Amount in the current period Amount in the previous period
Government grants received 8,111,343.93 3,059,786.92
Other miscellaneous funds received 70,773,513.68 45,871,591.13
Decrease in restricted funds the
current period
Total 246,791,044.92 482,860,988.36
Notes to other cash received related to operating activities:
Other cash paid related to operating activities
Unit: RMB
Item Amount in the current period Amount in the previous period
G&A expenses paid in cash 31,516,679.61 39,111,851.22
Selling and distribution expenses paid
in cash
Net amount of various payments and
receipts on behalf of others such as 95,117,668.76 170,693,541.68
paid utilities
Other miscellaneous funds paid 171,117,809.25 130,134,090.94
Increase in restricted funds in the
current period
Total 364,492,388.06 361,718,086.63
Notes to other cash paid related to operating activities:
(2) Cash related to investing activities
Other cash received related to investing activities
Unit: RMB
Item Amount in the current period Amount in the previous period
Important cash received related to investing activities
Unit: RMB
Item Amount in the current period Amount in the previous period
Net cash received from disposal of
fixed assets, intangible assets and 65,095,861.85 55,903,425.50
other long-term assets
Recovery of time deposits 57,412,000.00
Total 122,507,861.85 55,903,425.50
Notes to other cash received related to investing activities:
Other cash paid related to investing activities
Unit: RMB
Item Amount in the current period Amount in the previous period
Important cash paid related to investing activities
Unit: RMB
Item Amount in the current period Amount in the previous period
Purchase of time deposits 74,132,898.98 57,412,000.00
Purchase of funds 300,000,000.00
Total 374,132,898.98 57,412,000.00
Notes to other cash paid related to investing activities:
(3) Cash related to financing activities
Other cash received related to financing activities
Unit: RMB
Item Amount in the current period Amount in the previous period
Issuance of bonds 548,981,500.00
Total 548,981,500.00 0.00
Notes to other cash received related to financing activities:
Other cash paid related to financing activities
Unit: RMB
Item Amount in the current period Amount in the previous period
Amount paid for repayment of lease
liabilities
Cash consideration paid by the
combining party of business
combination under common control on
the combination date
Amount paid for sale and leaseback 18,624,887.50 18,693,137.50
Other miscellaneous funds paid 2,446,730.24 1,368,000.00
Total 35,102,444.75 37,214,506.73
Notes to other cash paid related to financing activities:
Changes in various liabilities arising from financing activities
? Applicable Not applicable
Unit: RMB
Increase in the current period Decrease in the current period
Beginning
Item Non-cash Non-cash Ending balance
balance Cash changes Cash changes
changes changes
Short-term
borrowings and
long-term
borrowings
Bonds payable 548,981,500.00 1,103,317.25 794,000.00 549,290,817.25
Lease liabilities 19,131,875.12 18,263,351.39 13,894,308.11 23,500,918.40
Long-term
payables
Total 5,863,021,388.47 5,078,494,859.21 278,184,238.01 2,265,101,594.26 8,954,598,891.43
(4) Notes to cash flows expressed in net amount
Basis for presentation of net
Item Relevant facts Financial impact
amount
(5) Significant activities and financial impacts that do not involve current cash receipts and
payments, but affect the financial position of the enterprise or may affect the cash flows in the
future
Not applicable
(1) Supplementary information to the statement of cash flows
Unit: RMB
Supplementary information The current period Amount in previous period
from operating activities:
Net profit 4,693,347.66 -1,287,143,724.11
Plus: provision for assets impairment 12,305,498.16 1,399,201,757.35
Depreciation of fixed assets, depletion
of oil and gas assets, depreciation of 42,321,897.41 51,987,250.80
productive biological assets
Depreciation of right-of-use assets 12,985,495.03 13,691,114.95
Amortization of intangible assets 396,004.78 418,235.75
Amortization of long-term deferred
expenses
Losses from disposal of fixed assets,
intangible assets and other long-term -144,737.35 -87,845.86
assets ( "-" for gains)
Losses on write-off of fixed assets ("-"
for gains)
Losses from changes in fair value ("-"
-1,765,714.20
for gains)
Financial expenses ("-" for gains) 126,667,175.62 68,369,233.02
Investments losses ("-" for gains) -930,705.77 -185,619,483.06
Supplementary information The current period Amount in previous period
Decreases in deferred tax assets (“-”
for increases)
Increase in deferred tax liabilities ("-"
for decreases)
Decreases in inventories ("-" for
-256,518,426.29 -495,134,772.53
increases)
Decreases in operating receivables (“-”
for increases)
Increases in operating payables (“-” for
-3,082,393,830.39 -962,115,268.78
decreases)
Others
Net cash flows from operating activities -2,086,069,661.63 -1,423,998,174.52
activities not involving in cash receipts
and payments:
Transfer of debts into capital
Convertible corporate bonds maturing
within 1 year
Fixed assets leased from financing
equivalents:
Ending balance of cash 2,042,045,384.98 1,610,799,884.30
Less: beginning balance of cash 1,610,799,884.30 2,733,139,135.12
Plus: ending balance of cash
equivalents
Less: beginning balance of cash
equivalents
Net increase in cash and cash
equivalents
(2) Net cash paid for acquisition of subsidiaries in the current period
Unit: RMB
Amount
Including:
Including:
Including:
Other explanations:
(3) Net cash received for disposal of subsidiaries in the current period
Unit: RMB
Amount
Including:
Including:
Including:
Other explanations:
(4) Breakdowns of cash and cash equivalents
Unit: RMB
Item Ending balance Beginning balance
I. Cash 2,042,045,384.98 1,610,799,884.30
Including: cash on hand 7,741.04 10,705.64
Unrestricted bank deposits 2,040,335,431.24 1,610,628,980.11
Other unrestricted monetary funds 1,702,212.10 160,198.55
III. Ending balance of cash and cash
equivalents
Including: cash and cash equivalents
with restricted use right by parent 82,297,671.21 67,316,759.82
company or subsidiaries of the Group
(5) Limited use but still presented as cash and cash equivalents
Unit: RMB
Reasons for classified as
Item The current period Amount in previous period
cash and cash equivalents
This was the capital within
the pre-sale supervision
quota of the project. Potevio
could apply for paying the
Pre-sale funds of Lake City construction expenditure and
Project relevant statutory taxes of
the project in accordance
with the relevant regulations
on the supervision of pre-
sale funds.
This was the capital within
the pre-sale supervision
quota of the project. Potevio
could apply for paying the
Pre-sale funds of Shenyang construction expenditure and
Digital Intelligent City Project relevant statutory taxes of
the project in accordance
with the relevant regulations
on the supervision of pre-
sale funds.
This was the capital within
the pre-sale supervision
quota of the project. Potevio
could apply for paying the
Pre-sale funds of
construction expenditure and
Guangming Yutang Shangfu 0.00 249,758,757.74
relevant statutory taxes of
Project
the project in accordance
with the relevant regulations
on the supervision of pre-
sale funds.
Total 309,909,508.57 472,397,712.46
(6) Monetary funds not classified as cash and cash equivalents
Unit: RMB
Reasons for not classified as
Item The current period Amount in previous period
cash and cash equivalents
Other explanations:
(7) Notes on other significant activities
Specify the name of "others" items adjusted to the ending balance of the previous year, the adjusted
amount and other matters:
Not applicable
(1) Foreign currency monetary items
Unit: RMB
Ending balance of foreign Ending balance of translated
Item Exchange rate of conversion
currency RMB
Monetary funds 73,545,083.29
Including: USD 120,000.00 7.0288 843,456.00
EUR
HKD 68,456,880.28 0.9032 61,831,623.41
VND 40,559,716,029.00 0.000268 10,870,003.88
Accounts receivable
Including: USD
EUR
HKD
VND 16,926,227,486.00 0.000268 4,536,229.01
Long-term borrowings
Including: USD
EUR
HKD
Prepayment 35,326.36
Including: USD
VND 30,539,568.00 0.0002680 8,184.60
HKD 30,050.00 0.9032 27,141.76
Other receivables 5,121,632.59
Including: USD
VND 851,129,966.00 0.0002680 228,102.83
HKD 5,417,871.35 0.9032 4,893,529.76
Accounts payable 1,215,563.87
Including: USD
VND 4,346,953,546.00 0.0002680 1,164,983.55
HKD 56,000.00 0.9032 50,580.32
Other payables 5,268,205.47
Including: USD
VND 4,249,024,141.00 0.0002680 1,138,738.47
HKD 4,571,939.28 0.9032 4,129,467.00
Other explanations:
(2) Description of foreign operating entities, including, for significant foreign operating entities,
disclosure of their principal place of business outside of the country, the recording currency
and the basis of selection, and disclosure of the reasons for any change in the recording
currency
? Applicable Not applicable
Main premise Recording Basis for selection of recording
Item
overseas currency currency
Shum Yip Properties The company is located in Hong Kong
Hong Kong HKD
Development Limited and is mainly settled in HKD
Vietnam Shenzhen International
The company is located in Vietnam and
Trade Center Property Vietnam VND
mainly settles in VND
Management Co., Ltd.
(1) The Company acted as lessee:
? Applicable Not applicable
Variable lease payments not included in the measurement of lease liabilities
□ Applicable ? Not applicable
Lease expense of short-term leases or low-value assets with simplified treatment
? Applicable Not applicable
Item Amount in the current period
Short-term leases expenses 4,092,451.87
Low-value lease expenses
Variable lease payments not included in the measurement of lease liabilities
Total 4,092,451.87
The total cash outflow related to leases for the current year (including the portion measured as lease
liabilities, the simplified short-term lease expenses and low-value asset lease expenses, and the sale-
and-leaseback portion) was RMB 36,611,647.48.
Situations involving sale and leaseback transactions
In December 2023, the Company signed a sale and leaseback contract with Maxwealth Financial
Leasing Co., Ltd., agreeing to transfer part of the office facilities, with a leaseback period of 48 months.
Since the fixed assets had not been transferred to the buyer from beginning to end, it was judged that it
did not belong to sales, and the payment received was accounted for as a liability.
(2) The Company acted as the lessor
Operating lease as lessor
? Applicable Not applicable
Unit: RMB
Including: revenue related to variable
Item Lease income lease payments not included in lease
receipts
Lease item 179,189,706.94
Total 179,189,706.94
Financing lease as the lessor
□ Applicable ? Not applicable
Undiscounted lease receipts for each of the next five years
? Applicable Not applicable
Unit: RMB
Annual undiscounted lease receipts
Item
Ending amount Beginning amount
The First year 131,345,799.05 110,941,561.06
The Second year 92,600,290.28 77,676,433.74
The Third year 63,579,624.06 56,801,516.42
The Fourth year 42,681,268.05 37,483,824.97
The Fifth year 30,994,695.92 24,132,445.44
Total undiscounted lease receipts after
five years
Reconciliation of undiscounted lease receipts and net lease investment
(3) Recognize the profit or loss from financing lease sales as a manufacturer or distributor
□ Applicable ? Not applicable
Not applicable
VIII. R&D expenditures
Unit: RMB
Item Amount in the current period Amount in the previous period
Personnel expenses 4,714,388.56 4,816,649.05
Depreciation and amortization
expenses
Others 100,501.10 506,676.97
Total 4,842,422.28 5,351,808.44
Including: expensed R&D expenditures 4,842,422.28 5,351,808.44
Unit: RMB
Increase in the current period Decrease in the current period
Beginning Internal Recognized Transfer Ending
Item developme as into current
balance Others balance
nt intangible profit or
expenses assets loss
Total
Significant capitalized R & D projects
Production method Timing of Specific basis for
Estimated
Item R&D progress of expected capitalization capitalization
completion time
economic benefits commencement commencement
Provision for impairment of development expenses
Unit: RMB
Increase in the Decrease in the
Item Beginning balance Ending balance Impairment test
current period current period
Methods in which economic benefits Judgment criteria and specific basis for
Project
are expected to arise capitalization or expense
Other explanations:
IX. Changes in consolidation scope
(1) Business combination not under common control occurred in the current period
Unit: RMB
Cash
Revenue Net profit
flows of
of the of the
Determina the
acquiree acquiree
Time point Costs of Equity Methods tion basis acquiree
Name of Acquisitio from the from the
of equity equity acquisition of equity of the from the
acquiree n date acquisition acquisition
acquisition acquisition ratio acquisition acquisition acquisition
date to the date to the
date date to the
end of the end of the
end of the
period period
period
Other explanations:
(2) Combination costs and goodwill
Unit: RMB
Combination costs
-- Cash
-- Fair value of non-cash assets
-- Fair value of debt issued or assumed
-- Fair value of equity securities issued
-- Fair value of the contingent consideration
-- Fair value of the equity held before the purchase date on
the acquisition date
-- Others
Total combination costs
Less: fair value share of net identifiable assets
Goodwill/combination cost less than the amount of fair
value share of net identifiable assets acquired
Determination method of fair value of combination cost:
Notes to contingent consideration and its changes
Main reasons for the formation of large goodwill:
Other explanations:
(3) Identifiable assets and liabilities of the acquiree on the acquisition date
Unit: RMB
Fair value on acquisition date Book value on acquisition date
Assets:
Monetary funds
Accounts receivable
Inventories
Fixed assets
Intangible assets
Liabilities:
Borrowing
Accounts payable
Deferred tax liabilities
Net assets
Less: minority equity
Net assets acquired
Determination method of fair value of identifiable assets and liabilities:
Contingent liabilities of the acquiree assumed in the business combination:
Other explanations:
(4) Gains or losses arising from the equity held before the acquisition date remeasured at fair
value
Whether there was a transaction that realized business combination step by step through multiple
transactions and obtained right of control during the reporting period
Yes ? No
(5) Notes to the fair value of the combination consideration or the acquiree's identifiable assets
and liabilities that cannot be reasonably determined at the end of the purchase date or the
current period of the merger
(6) Other explanations
(1) Business combination under common control occurred in the current period
Unit: RMB
Revenue of Net profit of
the the
Basis for combined combined Revenue of Net profit of
Ratio of
constituting Determinati party from party from the the
Name of equity
business on basis of the the combined combined
the acquired in Combinatio
combinatio the beginning beginning party during party during
combined business n date
n under combinatio of the of the the the
party combinatio
common n date period to period to comparison comparison
n
control the the period period
combinatio combinatio
n date n date
Other explanations:
(2) Combination costs
Unit: RMB
Combination costs
-- Cash
-- Book value of non-cash assets
-- Book value of debt issued or assumed
-- Par value of equity securities issued
-- Contingent consideration
Notes to contingent consideration and its changes:
Other explanations:
(3) Book value of the assets and liabilities of the combined party on the combination date
Unit: RMB
Combination date At the end of previous period
Assets:
Monetary funds
Accounts receivable
Inventories
Fixed assets
Intangible assets
Liabilities:
Borrowing
Accounts payable
Net assets
Less: minority equity
Net assets acquired
Contingent liabilities of the combined party assumed in the business combination:
Other explanations:
Basic information of the transaction, basis for the transaction to constitute a reverse purchase, whether
the assets and liabilities retained by the listed company constitute a business and the basis thereof,
determination of the combination cost, and the amount of equity adjusted when the transaction is
treated as an equity transaction and its calculation:
Whether there were any transactions or events during the period in which control over the subsidiary is
lost
Yes ? No
Whether there are multiple transactions and step-by-step disposal of the investment in a subsidiary
leading the loss of the control right over the subsidiary in the current period
Yes ? No
Describe changes in the scope of consolidation due to other reasons (e.g., establishment of new
subsidiaries, liquidation of subsidiaries, etc.) and the related situations:
The subsidiary, Huiheng Development Co., Ltd., completed its cancellation registration on April 3, 2025.
X. Equity in other entities
(1) Compositions of the Group
Unit: RMB
Name of Registered Registration Shareholding ratio Method of
Main premise Business nature
subsidiaries capital place Direct Indirect acquisition
Shenzhen
Real estate
Huangcheng
Real Estate Co.,
and operation
Ltd.
Shenzhen
Wuhe Industry Real estate
Investment and 100,000,000.00 Shenzhen Shenzhen leasing 100.00% Establishment
Development operation
Co., Ltd.
Shenzhen
Software and Business
Facility
information combination not
Management 15,453,000.00 Shenzhen Shenzhen 35.00%
technology under common
Community Co.,
services control
Ltd.
Beijing Facility
Software and Business
Management
information combination not
Community 5,000,000.00 Beijing Beijing 17.85%
technology under common
Technology Co.,
services control
Ltd.
SZPRD Xuzhou
Dapeng Real Real estate
Estate 50,000,000.00 Xuzhou Xuzhou development 100.00% Establishment
Development and operation
Co., Ltd.
Dongguan ITC
Changsheng Real estate
Real Estate 20,000,000.00 Dongguan City Dongguan City development 100.00% Establishment
Development and operation
Co., Ltd.
SZPRD
Yangzhou Real Real estate
Estate 50,000,000.00 Yangzhou City Yangzhou City development 100.00% Establishment
Development and operation
Co., Ltd.
Shenzhen
International
Trade Center Property
Property management
Management
Co., Ltd.
Shenzhen
Guomaomei Life Property
Service Co., management
Ltd.
Shandong
Shenzhen Property
International management
Trade Center
Name of Registered Registration Shareholding ratio Method of
Main premise Business nature
subsidiaries capital place Direct Indirect acquisition
Property
Management
Co., Ltd.
Chongqing
Shenguomao
Property
Real Estate 5,000,000.00 Chongqing Chongqing 100.00% Establishment
management
Management
Co., Ltd.
Chongqing
Construction
Aobo Elevator 5,000,000.00 Chongqing Chongqing 100.00% Establishment
and installation
Co., Ltd.
Shenzhen
Tianque
Construction
Elevator 5,000,000.00 Shenzhen Shenzhen 100.00% Establishment
and installation
Technology Co.,
Ltd.
Shenzhen
International
Trade Center
Construction
Mechanical and 1,200,000.00 Shenzhen Shenzhen 100.00% Establishment
and installation
Electrical
Equipment Co.,
Ltd.
Shenzhen
Guomao Catering
Catering Co., services
Ltd.
Shenzhen
Property
Engineering
Engineering and
Construction
services
Supervision Co.,
Ltd.
Shenzhen
Property Real estate
Commercial 40,000,000.00 Shenzhen Shenzhen leasing 100.00% Establishment
Operation Co., operation
Ltd.
Shum Yip
Real estate
Properties
Development
operation
Limited
Yangzhou
Slender West
Lake Jingyue Property
Property management
Development
Co., Ltd.
Shandong
Shenzhen ITC
Catering
Hotel 3,000,000.00 Jinan Jinan 100.00% Establishment
services
Management
Co., Ltd.
Shenzhen
ShenShan
Special
Cooperation
Zone Shenzhen
Property
International 5,000,000.00 Shenzhen Shenzhen 65.00% Establishment
management
Trade Center
Property
Management
Development
Co., Ltd.
Shenzhen ITC
Tongle Property Property
Management management
Co., Ltd.
Name of Registered Registration Shareholding ratio Method of
Main premise Business nature
subsidiaries capital place Direct Indirect acquisition
Shenzhen
Business
Rongyao Real Real estate
combination not
Estate 10,000,000.00 Shenzhen Shenzhen development 69.00%
under common
Development and operation
control
Co., Ltd.
Shenzhen ITC Business
Technology Property combinations
Park Service management under common
Co., Ltd. control
Shenzhen ITC
Business
Chuntian Real estate
combinations
Commercial 20,000,000.00 Shenzhen Shenzhen leasing 100.00%
under common
Management operation
control
Co., Ltd.
Shenzhen
Business
Penghongyuan Real estate
combinations
Industrial 8,000,000.00 Shenzhen Shenzhen leasing 100.00%
under common
Development operation
control
Co., Ltd.
Shenzhen
Business
Jinhailian
Property combinations
Property 3,000,000.00 Shenzhen Shenzhen 100.00%
management under common
Management
control
Co., Ltd.
Business
Shenzhen
Property combinations
Social Welfare 35,000,000.00 Shenzhen Shenzhen 100.00%
management under common
Co., Ltd.
control
Shenzhen
Business
Fuyuanmin
Property combinations
Property 10,000,000.00 Shenzhen Shenzhen 100.00%
management under common
Management
control
Co., Ltd.
Shenzhen
Business
Meilong Real estate
combinations
Industrial 5,000,000.00 Shenzhen Shenzhen leasing 100.00%
under common
Development operation
control
Co., Ltd.
Business
Shenzhen ITC
Property combinations
Shenlv Garden 10,600,000.00 Shenzhen Shenzhen 90.00%
management under common
Co., Ltd.
control
Shenzhen
Business
Jiayuan
Property combinations
Property 1,000,000.00 Shenzhen Shenzhen 54.00%
management under common
Management
control
Co., Ltd.
Shenzhen
Business
Helinhua Real estate
combinations
Construction 3,000,000.00 Shenzhen Shenzhen leasing 90.00%
under common
Management operation
control
Co., Ltd.
Shenzhen Business
Real estate
Kangping combinations
Industrial Co., under common
operation
Ltd. control
Business
Shenzhen Real estate
combinations
Sports Service 3,300,000.00 Shenzhen Shenzhen leasing 100.00%
under common
Co., Ltd. operation
control
Shenzhen Business
Real estate
Jiaoshizhijia combinations
Training Co., under common
operation
Ltd. control
Shenzhen 4,985,610.00 Shenzhen Shenzhen Real estate 100.00% Business
Education leasing combinations
Name of Registered Registration Shareholding ratio Method of
Main premise Business nature
subsidiaries capital place Direct Indirect acquisition
Industry Co., operation under common
Ltd. control
Business
Shenzhen Yufa Real estate
combinations
Industrial Co., 1,050,000.00 Shenzhen Shenzhen leasing 80.95%
under common
Ltd. operation
control
Shenzhen
SZPRD Real estate
Fuyuantai 10,000,000.00 Shenzhen Shenzhen development 100.00% Establishment
Development and operation
Co., Ltd.
Xiamen
Shenzhen ITC
Property
Chancheng 5,000,000.00 Xiamen Xiamen 51.00% Establishment
management
Smart Service
Co., Ltd.
Vietnam
Shenzhen
International
Property
Trade Center 200,000.002 Vietnam Vietnam 100.00% Establishment
management
Property
Management
Co., Ltd.
Shenzhen
SZPRD Swallow Real estate
Lake 10,000,000.00 Shenzhen Shenzhen development 100.00% Establishment
Development and operation
Co., Ltd.
Shenzhen
Real estate
Guangming
Wuhe Real
and operation
Estate Co., Ltd.
Dongguan Real estate
Wuhe Real 50,000,000.00 Dongguan City Dongguan City development 100.00% Establishment
Estate Co., Ltd. and operation
Shenzhen Business
Property Property combinations
Management management under common
Co., Ltd. control
Shenzhen Business
Shenwu Construction combinations
Elevator Co., and installation under common
Ltd. control
Shenzhen
Business
Shenfang
Property combinations
Property 1,000,000.00 Shenzhen Shenzhen 100.00%
management under common
Cleaning Co.,
control
Ltd.
Shenzhen
Business
Foreign Trade
Property combinations
Property 5,000,000.00 Shenzhen Shenzhen 100.00%
management under common
Management
control
Co., Ltd.
Shenzhen
Business
Shenfubao
Property combinations
Property 15,000,000.00 Shenzhen Shenzhen 100.00%
management under common
Development
control
Co., Ltd.
Shenzhen
Business
Fubao Urban
Property combinations
Resources 5,000,000.00 Shenzhen Shenzhen 60.00%
management under common
Management
control
Co., Ltd.
Shenzhen Construction Business
Shenfubao 10,000,000.00 Shenzhen Shenzhen 100.00% combinations
and installation
Municipal under common
Name of Registered Registration Shareholding ratio Method of
Main premise Business nature
subsidiaries capital place Direct Indirect acquisition
Service Co., control
Ltd.
Shenzhen Free Business
Trade Zone Property combinations
Security Service management under common
Co., Ltd. control
Shenzhen
Real estate
Wuhe Urban
Renewal Co.,
and operation
Ltd.
Yangzhou Wuhe Real estate
Real Estate Co., 50,000,000.00 Yangzhou City Yangzhou City development 67.00% Establishment
Ltd. and operation
Shenzhen
Tonglu Wuhe Real estate
Investment 10,000,000.00 Shenzhen Shenzhen leasing 100.00% Establishment
Development operation
Co., Ltd.
Shenzhen ITC
Property
Space Service 2,800,000.00 Shenzhen Shenzhen 55.00% Establishment
management
Co., Ltd.
Note: 1 HKD
Notes to the differences between the shareholding ratio and the proportion of voting rights in the
subsidiary:
In May 2021, the Company's subsidiary, Shenzhen Wuhe Industry Investment and Development Co.,
Ltd. (Wuhe Industry Investment and Development for short), acquired 35% of the equity of Shenzhen
Facility Management Community Co., Ltd. (Facility Management Community for short) through equity
acquisition and targeted capital increase. At the same time, according to the equity acquisition
cooperation framework agreement signed by the Wuhe Industry Investment and Development and the
original shareholders, from the date of completion of the transaction, the original shareholders
unconditionally granted 16% of the voting right of the equity in the Facility Management Community
they held or actually controlled to the Wuhe Industry Investment and Development. The grant of the
voting right had no preconditions, and the term of the voting right was not stipulated in the contract.
The basis for holding half or less than half of the voting rights but still controlling the investees, and
holding more than half of the voting rights but not controlling the investees:
Not applicable
Basis of controlling significant structured entities incorporated in the consolidation scope:
Not applicable
Basis for determining whether the firm is agent or principal:
Not applicable
Other explanations:
(2) Significant non-wholly-owned subsidiaries
Unit: RMB
Profit or loss Dividends declared to
Balance of minority
Shareholding ratio by attributable to minority be distributed to
Name of subsidiaries interests as at the end
minority shareholders shareholders in this minority shareholders
of the period
period in this period
Shenzhen Rongyao
Real Estate 31.00% -31,294,351.14 -170,466,250.94
Development Co., Ltd.
Yangzhou Wuhe Real
Estate Co., Ltd.
Notes to the differences between the shareholding ratios by minority shareholders in subsidiaries and
the corresponding voting ratios:
Other explanations:
(3) Key financial information of significant non-wholly-owned subsidiaries
Unit: RMB
Ending balance Beginning balance
Name of
subsidiarie Non- Non- Non- Non-
Current Total Current Total Current Total Current Total
s current current current current
assets assets liabilities liabilities assets assets liabilities liabilities
assets liabilities assets liabilities
Shenzhen
Rongyao
Real
Estate
Developm
ent Co.,
Ltd.
Yangzhou
Wuhe
Real
Estate
Co., Ltd.
Unit: RMB
Amount in the current period Amount in the previous period
Name of Total Cash flows Total Cash flows
subsidiaries Operating Operating
Net profit comprehensiv from operating Net profit comprehensiv from operating
revenue revenue
e income activities e income activities
Shenzhen
Rongyao Real - - - - -
Estate 100,949,295.6 100,949,295.6 425,822,985.6 425,822,985.6 231,418,503.1
.84
Development 5 5 0 0 5
Co., Ltd.
Yangzhou
- - -
Wuhe Real -
-2,097,645.34 -2,097,645.34 135,982,753.5 135,982,753.5 294,336,494.2
Estate Co., 64,620,767.91
Ltd.
Other explanations:
(4) Significant restrictions on the use of assets of the Group by subsidiaries and liquidation of
debts of the Group
(5) Financial support or other supports provided to structured entities included into the scope of
consolidated financial statements
Other explanations:
controlling the subsidiaries
(1) Explanation of changes in the share of owners' equity in subsidiary
(2) Impact of the transaction on minority interests and owners' equity attributable to the parent
company
Unit: RMB
Purchase cost/disposal consideration
-- Cash
-- Fair value of non-cash assets
Total purchase cost/disposal consideration
Less: share of net assets of subsidiary calculated according
to the ratio of equity acquired/disposed
Difference
Including: adjustment of capital reserve
Adjustment of surplus reserves
Adjustment of undistributed profits
Other explanations:
(1) Significant joint ventures or associates
Shareholding ratio Accounting
Name of joint treatment for
Registration Business
ventures or Main premise investment in
place nature Direct Indirect
associates joint ventures
or associates
Shenzhen
Property Jifa Warehousing Accounting by
Shenzhen Shenzhen 25.00% 25.00%
Warehousing services equity method
Co., Ltd.
Shenzhen
Tian'an
International
Property Accounting by
Building Shenzhen Shenzhen 50.00%
management equity method
Property
Management
Co., Ltd.
China
Construction
Engineering
Corporation Commercial Accounting by
Shenzhen Shenzhen 10.00%
Group Smart services equity method
Parking
Technology
Co., Ltd.
Notes to the difference between the shareholding ratio and the proportion of voting rights in the joint
ventures or associates:
Basis for holding less than 20% voting right but with significant influence, or holding 20% or more voting
right but without significant influence:
(2) Key financial information of significant joint ventures
Unit: RMB
Ending balance/amount incurred in the current Beginning balance/amount incurred in previous
period period
Tian'an Property Tian'an Property
Jifa Warehousing Jifa Warehousing
Management Management
Current assets 489,921,347.59 56,331,457.00 611,947,126.30 57,343,010.43
Including: cash and
cash equivalents
Non-current assets 11,838.69 31,676.49 284,847.56 44,161.33
Total assets 489,933,186.28 56,363,133.49 612,231,973.86 57,387,171.76
Current liabilities 25,039,956.54 30,130,956.02 147,518,773.45 29,195,202.15
Non-current liabilities 16,853,016.59 16,713,827.17
Total liabilities 25,039,956.54 46,983,972.61 147,518,773.45 45,909,029.32
Minority interests
Equity attributable to
shareholders of the 464,893,229.74 9,379,160.88 464,713,200.41 11,478,142.44
parent company
Net asset share
calculated based on 232,446,614.87 4,689,580.44 232,356,600.21 5,739,071.22
shareholding ratio
Adjusted matters
-- Goodwill
-- unrealized profit of
internal transactions
-- Others
Book value of equity
investment in joint 232,446,615.63 4,689,580.45 232,356,600.97 5,739,071.23
ventures
Fair value of equity
investments in joint
ventures with publicly
quoted prices
Operating revenue 9,544,127.63 12,281,629.12 4,795,838.23 11,355,950.99
Financial expenses -73,491.22 -1,062,195.08 -50,468.13 -430,563.58
Income tax expenses 7,664,619.18 122,861,946.86
Net profit 180,029.33 -2,098,981.56 368,581,564.93 -2,623,732.21
Net profit from
discontinued
operations
Other comprehensive
income
Total comprehensive 180,029.33 -2,098,981.56 368,581,564.93 -2,623,732.21
Ending balance/amount incurred in the current Beginning balance/amount incurred in previous
period period
Tian'an Property Tian'an Property
Jifa Warehousing Jifa Warehousing
Management Management
income
Dividends received
from joint ventures
during the year
Other explanations:
(3) Key financial information of significant associates
Unit: RMB
Ending balance/amount incurred in the Beginning balance/amount incurred in
current period previous period
China Construction Science And China Construction Science And
Industry Corporation LTD Industry Corporation LTD
Current assets 283,525,967.43 292,106,487.07
Non-current assets 298,963,156.58 88,143,320.13
Total assets 582,489,124.01 380,249,807.20
Current liabilities 297,287,838.30 173,994,765.30
Non-current liabilities 72,191,241.06 20,359,252.41
Total liabilities 369,479,079.36 194,354,017.71
Minority interests
Equity attributable to shareholders of
the parent company
Net asset share calculated based on
shareholding ratio
Adjusted matters
-- Goodwill
-- unrealized profit of internal
transactions
-- Others
Book value of equity investments in
associates
Fair value of equity investments in
associates with publicly quoted prices
Operating revenue 335,646,878.39 260,448,745.66
Net profit 18,901,818.83 12,445,936.25
Net profit from discontinued operations
Other comprehensive income
Total comprehensive income 18,901,818.83 12,445,936.25
Dividends received from associates
during the year
Other explanations:
(4) Summarized financial insignificant of unimportant joint ventures and associates
Unit: RMB
Ending balance/amount incurred in the Beginning balance/amount incurred in
current period previous period
Joint ventures:
Total amounts of the following items
calculated at shareholding ratio
Associates:
Total amounts of the following items
calculated at shareholding ratio
Other explanations:
(5) Description of significant restrictions on the ability of joint ventures or associates to transfer
funds to the Company
(6) Excess losses incurred by joint ventures or associates
Unit: RMB
Accumulated unrecognized Losses not recognized in the Accumulated unrecognized
Name of joint ventures or
losses accumulated in current period (or net profit losses at the end of the
associates
previous periods shared in the current period) current period
Other explanations:
(7) Unrecognized commitments related to investments in joint ventures
(8) Contingent liabilities related to joint ventures or investments in associates
Joint operation Shareholding ratio/share enjoyed (%)
Main premise Registration place Business nature
name Direct Indirect
Notes to the difference between the shareholding ratio and the proportion of voting rights in joint
operations:
If the joint operations is a separate entity, the basis for classifying it as joint operations:
Other explanations:
statements
Related notes to structuring subjects not included in the scope of consolidated financial statements in
the current period:
Not applicable
XI. Government grants
□ Applicable ? Not applicable
Reasons for not receiving the expected amounts of government grants at the expected time
□ Applicable ? Not applicable
□ Applicable ? Not applicable
? Applicable Not applicable
Unit: RMB
Accounting item Amount in the current period Amount in the previous period
Other income 13,361,936.00 3,059,786.92
Other explanations:
XII. Risks associated with financial instruments
The Company's main financial instruments include cash and cash equivalents, accounts receivable,
other receivables, other current assets, investments in other equity instruments, accounts payable,
other payables, short-term borrowings, non-current liabilities due within one year, long-term borrowings,
bonds payable, lease liabilities, and long-term payables. Details of each financial instrument have been
disclosed in the relevant notes. The risks related to these financial instruments and the risk
management policies adopted by the Company to mitigate these risks are described below. The
Company's management manages and monitors these exposures to ensure that the risks are controlled
within certain limits.
(1) Risk management objectives and policies
The main risks arising from the Company's financial instruments are credit risk, liquidity risk, and market
risk (including foreign exchange rate risk, interest rate risk, and commodity price risk).
The Company's goal in risk management is to strike an appropriate balance between risk and return,
minimize the negative impact of risk on the Company's operating performance, and maximize the
benefits of shareholders and other equity investors. Based on this risk management objective, the
Company's basic risk management strategy is to determine and analyze various risks faced by the
company, establish an appropriate risk tolerance bottom line and risk management, and timely and
reliable supervision of various risks, to control the risk within the limited scope.
The Company diversifies the risks of financial instruments through appropriate diversified investments
and business portfolios, and reduces risk concentrated on a single industry, a specific region, or a
specific counterparty by formulating appropriate risk management policies.
a. Credit risk
Credit risk refers to the risk that the Company will incur financial losses due to the failure of the
counterparty to perform its contractual obligations.
The Company manages the credit risk by portfolio. Credit risk mainly arises from bank deposits,
accounts receivable, other receivables, etc.
The Company's bank deposits are mainly deposited in state-owned banks and other large and medium-
sized listed banks, and the Company expects that there is no significant credit risk in the bank deposits.
For accounts receivable and other receivables, the Company has set up relevant policies to control the
exposure of credit risk. The Company evaluates the credit qualifications of customers and sets the
corresponding credit period based on the financial status, credit history and other factors such as the
current market conditions of customers. The COOEC would monitor the customers' credit records
periodically; as for the customers with bad credit records, the COOEC would adopt the methods
including requesting a payment in writing or shortening or canceling credit term so as to keep the
COOEC's overall credit risks within controllable scope.
The debtors of the Company's accounts receivable are customers distributed in different industries and
regions. The Company continuously conducts credit evaluations on the financial status of accounts
receivable and purchases credit guarantee insurance when appropriate.
The maximum credit risk exposure of the Company shall be the carrying amount of each financial asset
in the balance sheet. The Company has not provided any other guarantee that may subject the
Company to credit risk.
In the Company's accounts receivable, the accounts receivable of the top five companies in arrears
accounted for 36.69% of the Company's total accounts receivable (2024: 49.49%); in the Company's
other receivables, the other receivables of the top five companies in arrears accounted for 86.79%
(2024: 86.94%) of the total other receivables of the Company.
b. Liquidity risk
Liquidity risk refers to the risk that the Company will encounter a shortage of funds when fulfilling its
obligations to settle in cash or other financial assets.
When managing liquidity risk, the Company maintains cash and cash equivalents that the Management
believes are sufficient and monitors them to meet the Company's operational needs and reduce the
impact of cash flows fluctuations. The Management of the Company monitors the use of bank
borrowings and ensures compliance with the loan agreement. At the same time, the Company has
obtained commitments from major financial institutions to provide sufficient standby funds to meet
short-term and long-term funding needs.
The Company finances its working capital through funds generated from its operations and bank and
other borrowings.
At the end of the period, the financial liabilities and off-balance guarantee items held by the Company
were analyzed as follows according to the maturity of the undiscounted remaining contractual cash
flows (unit: RMB10,000):
Ending balance
Item More than 3
Within 1 year Within 1 to 3 years Total
years
Financial liabilities:
Short-term borrowings and long-term
borrowings
Ending balance
Item More than 3
Within 1 year Within 1 to 3 years Total
years
Accounts payable 87,564.30 87,564.30
Other payables 118,928.51 1,220.27 120,148.78
Non-current liabilities maturing within
one year
Other current liabilities (excluding
deferred income)
Bonds payable 54,823.67 54,823.67
Lease liabilities 1,269.78 538.98 1,808.76
Long-term payables 39,947.10 39,947.10
Total financial liabilities and
contingent liabilities
At the end of the previous year, the financial liabilities and off-balance guarantee items held by the
Company were analyzed according to the maturity of the undiscounted remaining contractual cash
flows as follows (unit: RMB10,000):
Balance as at the end of the previous year
Item More than 3
Within 1 year Within 1 to 3 years Total
years
Financial liabilities:
Short-term borrowings and long-term
borrowings
Accounts payable 104,309.23 104,309.23
Other payables 121,914.87 1,220.27 123,135.14
Non-current liabilities maturing within
one year
Other current liabilities (excluding
deferred income)
Lease liabilities 1,373.57 941.53 2,315.10
Long-term payables 1,822.49 44,368.28 46,190.77
Total financial liabilities and
contingent liabilities
The amount of financial liabilities disclosed in the above table was the undiscounted contractual cash
flows, so it might be different from the book value in the balance sheet.
c. Market risk
Market risk associated with financial instruments refers to the risk that fair value or future cash flows of
financial instruments fluctuate due to variations in market prices, and it includes exchange rate risk,
interest rate risk and other price risks.
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 in market interest rates. Interest rate risk can arise from recognized
interest-bearing financial instrument and unrecognized financial instrument (e. g. certain loan
commitment).
The Company's interest rate risk mainly arises from bank borrowings. Financial liabilities with floating
interest rates expose the Company to cash flows interest rate risk, and financial liabilities with fixed
interest rate expose the Company to fair value interest rate risk. The Company determines the relative
ratio of fixed interest rate and floating rate contracts based on the prevailing market conditions, and
maintains an appropriate mix of fixed and floating rate instruments through regular review and
monitoring.
The Company closely monitors the impact of fluctuation in interest rate changes on the Company's
interest rate risk. The Company does not currently have an interest rate hedging policy. However, the
Management is responsible for monitoring interest rate risk and will consider hedging significant interest
rate risk when required. Rising interest rates will increase the cost of new interest-bearing debt and the
interest expenses of the Company's outstanding interest-bearing debt at floating rates, and have a
significant adverse impact on the Company's financial performance. The Management will make timely
adjustments based on the latest market conditions, which may be interest rate swaps to reduce interest
rate risk.
The interest-bearing financial instruments held by the Company are as follows (unit: RMB10,000):
Item Amount in this period Amount in previous period
Fixed interest rate financial instruments
Financial liabilities
Including: short-term borrowings 44,945.82 19,016.55
Long-term borrowings maturing within
one year
Long-term borrowings 368,159.49 475,531.46
Total 798,193.62 544,374.00
At the end of the period, if the interest rate on floating-rate borrowings increases or decreases by 25
basis points while other factors remain unchanged, the Company's net profit and shareholders' equity
will decrease or increase by approximately RMB 231,300 (end of last year: RMB 126,300).
For financial instruments held on the balance sheet date that expose the Company to fair value interest
rate risk, the impact of net profit and shareholders' equity in the above sensitivity analysis is the impact
after the above financial instruments are remeasured at the new interest rate assuming that the interest
rate changes on the balance sheet date. For floating rate non-derivatives held on the balance sheet
date that expose the Company to cash flows interest rate risk, the impact of net profit and shareholders'
equity in the above sensitivity analysis is the impact of the above interest rate changes on interest
expenses or income estimated on an annual basis. The previous year's analysis was based on the
same assumptions and methodology.
d. Exchange rate risk
Exchange rate risk refers to the risk that the fair value or future cash flows of the financial instrument
will fluctuate due to changes in foreign exchange rates. Exchange rate risk can arise from financial
instruments denominated in foreign currencies other than recording currency.
The Company's main business is located in China, and its main business is settled in RMB. However,
there are still foreign exchange risks for the Company's recognized foreign currency assets and
liabilities and future foreign currency transactions (the valuation currencies of foreign currency assets
and liabilities and foreign currency transactions are mainly HKD, VND and USD).
At the end of the period, the foreign currency financial assets and foreign currency financial liabilities
held by the Company are translated into RMB as follows (unit: RMB10,000):
Foreign currency liabilities Foreign currency assets
Item Balance as at the Balance as at the
Ending balance end of the Ending balance end of the
previous year previous year
HKD 418.00 387.01 6,675.23 6,640.79
VND 230.37 283.75 1,564.25 1,390.38
USD 84.35 86.26
Total 648.37 670.76 8,323.83 8,117.43
The Company closely monitors the impact of fluctuation in exchange rate on the Company's exchange
rate risk. The Company is not currently taking any measures to avoid exchange rate risk. However, the
Management is responsible for monitoring exchange rate risk and will consider hedging significant
exchange rate risk when required.
At the end of the period, for the Company's cash and cash equivalents denominated in foreign
currencies, assuming that the RMB appreciates or depreciates by 10% against foreign currencies
(mainly against HKD, VND, and USD) while other factors remain unchanged, the Company's
shareholders' equity and net profit will both increase or decrease by approximately RMB 5,756,600 (end
of last year: approximately RMB 7,011,200).
(2) Capital management
The objective of the Company's capital management policy is to ensure that the Company can continue
as a going concern, thereby providing returns for shareholders and benefiting other stakeholders, while
maintaining an optimal capital structure to reduce the cost of capital.
To maintain or adjust the capital structure, the Company may adjust financing methods, adjust the
amount of dividends paid to shareholders, return capital to shareholders, issue new shares and other
equity instruments, or sell assets to reduce the debt.
The Company monitors its capital structure based on the debt-to-asset ratio (i.e., total liabilities divided
by total assets). At the end of the period, the Company's debt-to-asset ratio was 79.04% (end of last
year: 78.88%).
(1) The Company conducts hedging business for risk management
□ Applicable ? Not applicable
(2) The Company conducts eligible hedging business and applies hedge accounting
Unit: RMB
Cumulative fair value
Hedge effectiveness Impact of hedge
Book value related to hedge adjustment
and source of accounting on the
Item the hedged item and included in the book
ineffective part of Company's financial
the hedging instrument value of the hedged
hedge statements
item recognized
Type of hedging risk
Type of hedging
Other explanations
(3) The Company conducts hedging business for risk management, and is expected to achieve
risk management objectives but does not apply hedging accounting
□ Applicable ? Not applicable
(1) Classification of transfer methods
□ Applicable ? Not applicable
(2) Financial assets derecognition due to transfer
□ Applicable ? Not applicable
(3) Continued involvement in the transfer of financial assets
□ Applicable ? Not applicable
Other explanations
XIII. Disclosure of fair value
Unit: RMB
Fair value as at the end of the period
Item Measured at the fair Measured at the fair Measured at the fair
Total
value of the 1st level value of the 2nd level value of the 3rd level
I. Continuous
measurement of fair -- -- -- --
value
(III) Investments in
other equity 567,317.70 567,317.70
instruments
II. Measurement at fair
value not on a going -- -- -- --
concern
and non-going concern
and non-sustainable items measured on the basis of fair value of level 2
used, and the qualitative and quantitative information of important parameters
analysis on the sensitivity of the unobservable parameters of sustainable and non-sustainable
items measured on the basis of fair value of tier three
current period and policies for determining the time of conversion
XIV. Related parties and related party transactions
Parent company's Parent company's
shareholding voting rights
Name Registration place Business nature Registered capital
percentage in the percentage in the
Company Company
Shenzhen Limited liability
RMB
Investment Shenzhen company (wholly 57.25% 57.25%
Holdings Co., Ltd. state-owned)
Parent company
The ultimate controller of the Company is the State-owned Assets Supervision and Administration
Commission of Shenzhen Municipal People's Government.
Other explanations:
See Note X.1 for details of the subsidiary of the Company.
See Note X.3 for details of important joint ventures or associates of the Company.
Joint ventures and associates involved in the related-party transactions with the Company in the
Current Period, or leading to balance due to the related party transaction they had with the Company in
previous periods:
Name of joint venture or associates Relationship with the Company
Other explanations:
Other related parties Relationship between other related parties with the COOEC
The parent company of Xinhai Rongyao, the minority
Shenzhen Xinhai Holdings
shareholders of the subsidiary Rongyao Real Estate
Shenzhen Xinhai Rongyao Real Estate Development Co., Minority shareholders of the subsidiary Rongyao Real
Ltd. Estate
Other related parties Relationship between other related parties with the COOEC
Yangzhou Tourism Development Property Co., Ltd. Subsidiary Yangzhou Wuhe's minority shareholders
Related parties of the minority shareholders of the
Shenzhen Qianhai Advanced Information Service Co., Ltd.
subsidiary Rongyao Real Estate
Shenzhen Tian'an International Building Property
Joint ventures of the Company
Management Co., Ltd.
Shenzhen Property Jifa Warehousing Co., Ltd. Joint ventures of the Company
Shenzhen Wufang Ceramic Industry Co., Ltd. Associates of the Company
Chengdu Zunxi Land Co., Ltd. Subsidiary of a subsidiary (under the parent company)
Dongguan Shenzhen Investment Holdings Investment
Subsidiary of a subsidiary (under the parent company)
Development Co., Ltd.
Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd. Subsidiary of a subsidiary (under the parent company)
Guoren P&C Insurance Co., Ltd. Subsidiary of the parent company
Hebei Shenbao Business Management Co., Ltd. Subsidiary of a subsidiary (under the parent company)
Hebei Shenbao Investment Development Co., Ltd. Subsidiary of a subsidiary (under the parent company)
Kunpeng Industrial Source Innovation Center (Shenzhen)
Wholly-owned sub-subsidiary of the parent company
Co., Ltd.
Shantou Huafeng Real Estate Development Co., Ltd. Subsidiary of a subsidiary (under the parent company)
Shantou Hualin Real Estate Development Co., Ltd. Subsidiary of a subsidiary (under the parent company)
Shenzhen Chuangke Development Co., Ltd. Subsidiary of a subsidiary (under the parent company)
Shenzhen Credit Guarantee Group Co., Ltd. Subsidiary of the parent company
Shenzhen High-tech Zone Development and Construction
Wholly-owned sub-subsidiary of the parent company
Co., Ltd.
Shenzhen Petrel Hotel Co., Ltd. Subsidiary of a subsidiary (under the parent company)
Shenzhen Convention and Exhibition Center Management
Wholly-owned subsidiary of the parent company
Co., Ltd.
Shenzhen Special Economic Zone Real Estate &
Subsidiary of the parent company
Properties (Group) Co., Ltd.
Shenzhen Talent Recruitment International (Group) Co.,
Wholly-owned sub-subsidiary of the parent company
Ltd.
Shenzhen Light Industrial Products Import and Export Co.,
Wholly-owned sub-subsidiary of the parent company
Ltd.
Research Institute of Tsinghua University in Shenzhen Subsidiary of the parent company
Shenzhen Total Logistics Service Co., Ltd. Subsidiary of a subsidiary (under the parent company)
Shenzhen Shenzhen-Hong Kong Science and Technology
Subsidiary of a subsidiary (under the parent company)
Innovation Park Operation and Development Co., Ltd.
Shenzhen Shenzhen-Hong Kong Science and Technology
Subsidiary of the parent company
Innovation Cooperation Zone Development Co., Ltd.
Shenzhen Shenshan Special Cooperation Zone Shenzhen
Wholly-owned subsidiary of the parent company
Investment Holdings Investment Development Co., Ltd.
Shenzhen Baoshi Real Estate Co., Ltd. Subsidiary of a subsidiary (under the parent company)
Shenzhen Security Service Co., Ltd. Subsidiary of the parent company
Shenzhen Free Trade Zone Life Service Co., Ltd. Subsidiary of a subsidiary (under the parent company)
Shenzhen Binjiang Industrial Co., Ltd. Subsidiary of a subsidiary (under the parent company)
Shenzhen Chenglong Real Estate Development Co., Ltd. Subsidiary of a subsidiary (under the parent company)
Shenzhen Urban Construction and Development (Group) Subsidiary of the parent company
Other related parties Relationship between other related parties with the COOEC
Co., Ltd.
Shenzhen Grand Industrial Zone (Shenzhen Export
Processing Zone) Development Management Group Co., Wholly-owned sub-subsidiary of the parent company
Ltd.
Shenzhen Legal Training Center Co., Ltd. Wholly-owned sub-subsidiary of the parent company
Shenzhen Fubao Park Operation Co., Ltd. Wholly-owned sub-subsidiary of the parent company
Shenzhen High-tech Zone Investment and Development
Subsidiary of the parent company
Group Co., Ltd.
Shenzhen Guohui Hotel Co., Ltd. Subsidiary of a subsidiary (under the parent company)
Shenzhen Environmental Technology Group Co., Ltd. Subsidiary of the parent company
Shenzhen Environmental Engineering Science and
Subsidiary of a subsidiary (under the parent company)
Technology Center Co., Ltd.
Shenzhen General Institute of Architectural Design and
Wholly-owned subsidiary of the parent company
Research Co., Ltd.
Shenzhen Jiaotongchang Station Construction and
Wholly-owned sub-subsidiary of the parent company
Development Co., Ltd.
Shenzhen Leaguer Education Co., Ltd. Subsidiary of a subsidiary (under the parent company)
Shenzhen Southern Certification Co., Ltd. Subsidiary of a subsidiary (under the parent company)
Shenzhen Shenda Credit Enhancement Financing
Subsidiary of a subsidiary (under the parent company)
Guarantee Co., Ltd.
Shenzhen Shenfang Chuanqi Real Estate Development
Subsidiary of a subsidiary (under the parent company)
Co., Ltd.
Shenzhen Properties Group Longgang Development Co.,
Subsidiary of a subsidiary (under the parent company)
Ltd.
Shenzhen Shenfubao (Group) Tianjin Industrial
Wholly-owned sub-subsidiary of the parent company
Development Co., Ltd.
Shenzhen Shenfubao (Group) Tianjin Investment and
Wholly-owned sub-subsidiary of the parent company
Development Co., Ltd.
Shenzhen Shenfubao (Group) Co., Ltd. Wholly-owned subsidiary of the parent company
Shenzhen Shenfubao East Investment and Development
Wholly-owned sub-subsidiary of the parent company
Co., Ltd.
Shenzhen Shentou Property Development Co., Ltd. Wholly-owned subsidiary of the parent company
Shenzhen Shenyue United Investment Co., Ltd. Wholly-owned sub-subsidiary of the parent company
Shenzhen Water Planning&Design Institute Co., Ltd. Subsidiary of the parent company
Shenzhen Tefa Port Service Co., Ltd. Subsidiary of a subsidiary (under the parent company)
Shenzhen Special Zone Literature Magazine Co., Ltd. Wholly-owned sub-subsidiary of the parent company
Shenzhen Sports Industry Group Co., Ltd. Wholly-owned subsidiary of the parent company
Shenzhen Sports Fashion Culture and Sports Development
Wholly-owned sub-subsidiary of the parent company
Co., Ltd.
Shenzhen Sports Center Operation Management Co., Ltd. Wholly-owned subsidiary of the parent company
Shenzhen Tianjun Biotechnology Development Co., Ltd. Subsidiary of a subsidiary (under the parent company)
Shenzhen Wancheng Logistics Co., Ltd. Subsidiary of a subsidiary (under the parent company)
Shenzhen Wangyu Center Operation Management Co.,
Wholly-owned sub-subsidiary of the parent company
Ltd.
Shenzhen Cultural Enterprise Development Co., Ltd. Wholly-owned sub-subsidiary of the parent company
Renaissance Shenzhen Bay Hotel Branch of Shenzhen Wholly-owned sub-subsidiary of the parent company
Other related parties Relationship between other related parties with the COOEC
Continental Hotel Management Co., Ltd.
Courtyard by Marriott Shenzhen Bay Branch of Shenzhen
Wholly-owned sub-subsidiary of the parent company
Continental Hotel Management Co., Ltd.
Shenzhen Xingye Transportation Co., Ltd. Subsidiary of a subsidiary (under the parent company)
Shenzhen Etong Digital Innovation and Development Co.,
Subsidiary of a subsidiary (under the parent company)
Ltd.
Shenzhen Eternal Asia Supply Chain Management Ltd. Subsidiary of a subsidiary (under the parent company)
Shenzhen Tianjun Industrial Co., Ltd. Subsidiary of a subsidiary (under the parent company)
Shenzhen Tianjun Investment Development Co., Ltd. Wholly-owned sub-subsidiary of the parent company
Shenzhen Native Produce & Animal By-products & Tea I/E
Wholly-owned sub-subsidiary of the parent company
Co. Ltd.
Shenzhen Bay (Baoding) Innovation Development Co., Ltd. Wholly-owned sub-subsidiary of the parent company
Shenzhen Bay Baolong Biological Innovation Investment
Subsidiary of a subsidiary (under the parent company)
and Development Co., Ltd.
Shenzhen Bay Technology Development Co., Ltd. Wholly-owned subsidiary of the parent company
Shenzhen Bay Area Urban Construction and Development
Wholly-owned subsidiary of the parent company
Co., Ltd.
Shenzhen Xiangmihu International Exchange Center
Wholly-owned subsidiary of the parent company
Development Co., Ltd.
Shenzhen Silver Lake Convention Center (Hotel) Co., Ltd. Wholly-owned sub-subsidiary of the parent company
Shenzhen Infinova Limited Subsidiary of the parent company
Shenzhen Infinova Information Technology Co., Ltd. Wholly-owned sub-subsidiary of the parent company
Shenzhen Infinova Smart Park Technology Co., Ltd. Wholly-owned sub-subsidiary of the parent company
Hong Kong HOI PAN Development Co., Ltd. Wholly-owned sub-subsidiary of the parent company
Shenzhen Haitian Building Property Development Co., Ltd. Wholly-owned sub-subsidiary of the parent company
China Shenzhen Foreign Trade (Group) Company Limited Wholly-owned subsidiary of the parent company
Shenzhen Investment Building Hotel Co., Ltd. Wholly-owned sub-subsidiary of the parent company
Shenzhen Urban Construction Mingyuan Industrial Co., Ltd. Wholly-owned sub-subsidiary of the parent company
Other explanations:
(1) Related party transactions on purchase and sales of goods, rendering and receipt of
services
Purchase of goods/receipt of services
Unit: RMB
Whether the
Content of related Amount in the Approved Amount in the
Related party transaction quota
party transactions current period transaction quota previous period
is exceeded
Guoren P&C
Insurance
Insurance Co., 2,665,639.27 2,647,109.23
premiums
Ltd.
Shenzhen Credit
Guarantee Group Guarantee fee 56,133.53
Co., Ltd.
Whether the
Content of related Amount in the Approved Amount in the
Related party transaction quota
party transactions current period transaction quota previous period
is exceeded
Shenzhen Special
Economic Zone
Management
Real Estate & 4,454,395.00 4,494,794.36
service fee
Properties (Group)
Co., Ltd.
Shenzhen Light
Industrial Products
Catering services 13,962.00 23,692.08
Import and Export
Co., Ltd.
Shenzhen Security Property service
Service Co., Ltd. fee
Shenzhen Legal
Training Center Training expenses 119,565.06 100,223.49
Co., Ltd.
Shenzhen Guohui Property service
Hotel Co., Ltd. fee
Shenzhen General
Institute of Project
Architectural architectural 2,928,196.42 5,315,400.00 4,207,808.07
Design and design services
Research Co., Ltd.
Shenzhen
Leaguer Education Training expenses 360,205.57
Co., Ltd.
Shenzhen
Southern
Certification fee 42,452.83
Certification Co.,
Ltd.
Shenzhen Shenda
Credit
Enhancement
Guarantee fee 274,886.79
Financing
Guarantee Co.,
Ltd.
Shenzhen
Shenfubao Catering services 611,516.00 541,145.00
(Group) Co., Ltd.
Shenzhen Water
Consulting service
Planning & Design 56,603.77
fees
Institute Co., Ltd.
Shenzhen Tefa
Property service
Port Service Co., 260,946.17 276,742.05
fee
Ltd.
Shenzhen Tianjun
Green plant
Biotechnology
maintenance 2,592.45 75,068.65
Development Co.,
service
Ltd.
Shenzhen Cultural
Enterprise
Activity fee 21,138.94 74,964.34
Development Co.,
Ltd.
Shenzhen Etong
Digital Innovation Catering services 31,794.69
and Development
Whether the
Content of related Amount in the Approved Amount in the
Related party transaction quota
party transactions current period transaction quota previous period
is exceeded
Co., Ltd.
Shenzhen Eternal
Asia Supply Chain Catering services 21,196.46
Management Ltd.
Shenzhen Tianjun Compensation for
Industrial Co., Ltd. relocation
Shenzhen Tianjun
Catering services 9,312.00
Industrial Co., Ltd.
Shenzhen Tianjun
Green plant
Investment
maintenance 183,808.09 52,638.20
Development Co.,
service
Ltd.
Shenzhen Native
Produce & Animal
Activity fee 59,325.00
By-products & Tea
I/E Co. Ltd.
Shenzhen Bay
Technology Management
Development Co., service fee
Ltd.
Shenzhen Infinova
Information Intelligent project
Technology Co., funds
Ltd.
China Shenzhen
Foreign Trade Management
(Group) Company service fee
Limited
Sales of goods/ rendering of services
Unit: RMB
Content of related party Amount in the previous
Related party Amount in the current period
transactions period
Chengdu Zunxi Land Co.,
Property service fee 1,865,053.26 3,480,160.55
Ltd.
Dongguan Shenzhen
Investment Holdings
Property service fee 3,015,849.04 3,098,470.59
Investment Development
Co., Ltd.
Guangdong Jianbang Group
Property service fee 392,403.00 295,724.00
(Huiyang) Industrial Co., Ltd.
Guoren P&C Insurance Co.,
Property service fee 1,292,668.37 325,538.86
Ltd.
Hebei Shenbao Business
Property service fee 1,657,323.45
Management Co., Ltd.
Hebei Shenbao Investment
Project funds 2,764,543.00 44,233,142.45
Development Co., Ltd.
Hebei Shenbao Investment
Property service fee 19,474,052.06 11,892,865.89
Development Co., Ltd.
Kunpeng Industrial Source Property service fee 728,119.78 1,339,304.96
Innovation Center
Content of related party Amount in the previous
Related party Amount in the current period
transactions period
(Shenzhen) Co., Ltd.
Shantou Huafeng Real
Estate Development Co., Property service fee 2,279,947.53 2,249,598.90
Ltd.
Shantou Hualin Real Estate
Property service fee 18,794.39 35,320.76
Development Co., Ltd.
Subsidiaries of Shenzhen
Catering services 49,320.80 88,079.06
Investment Holdings
Shenzhen Chuangke
Property service fee 7,849,483.51 5,317,675.30
Development Co., Ltd.
Shenzhen Credit Guarantee
Property service fee 4,237,119.44 4,217,529.68
Group Co., Ltd.
Shenzhen High-tech Zone
Development and Property service fee 2,606,207.12 2,521,098.97
Construction Co., Ltd.
Shenzhen Petrel Hotel Co.,
Property service fee 453,396.24
Ltd.
Shenzhen Convention and
Exhibition Center Property service fee 13,330,166.12 12,406,466.64
Management Co., Ltd.
Shenzhen Special Economic
Zone Real Estate & Project funds 133,675.95
Properties (Group) Co., Ltd.
Shenzhen Special Economic
Zone Real Estate & Property service fee 7,196,064.40 3,717,334.17
Properties (Group) Co., Ltd.
Shenzhen Talent
Recruitment International Property service fee 333,240.97 443,957.91
(Group) Co., Ltd.
Research Institute of
Tsinghua University in Property service fee 2,381,629.15 2,217,409.49
Shenzhen
Shenzhen Total Logistics
Property service fee 2,923,946.63 2,936,775.96
Service Co., Ltd.
Shenzhen Shenzhen-Hong
Kong Science and
Technology Innovation Park Property service fee 20,981,477.63 13,318,956.64
Operation and Development
Co., Ltd.
Shenzhen Shenzhen-Hong
Kong Science and
Technology Innovation Project funds 3,035,991.92
Cooperation Zone
Development Co., Ltd.
Shenzhen Shenzhen-Hong
Kong Science and
Technology Innovation Property service fee 10,070,896.13 2,710,293.10
Cooperation Zone
Development Co., Ltd.
Shenzhen Shenshan Special
Cooperation Zone Shenzhen Property service fee 2,287,117.51 2,099,868.10
Investment Holdings
Investment Development
Content of related party Amount in the previous
Related party Amount in the current period
transactions period
Co., Ltd.
Shenzhen Baoshi Real
Property service fee 6,840,220.54 3,612,660.76
Estate Co., Ltd.
Shenzhen Chenglong Real
Estate Development Co., Property service fee 1,629,711.29 1,734,921.21
Ltd.
Shenzhen Urban
Construction and
Property service fee 205,415.09 273,886.79
Development (Group) Co.,
Ltd.
Shenzhen Grand Industrial
Zone (Shenzhen Export
Processing Zone) Project funds 1,269,635.80 -206,798.79
Development Management
Group Co., Ltd.
Shenzhen Grand Industrial
Zone (Shenzhen Export
Processing Zone) Property service fee 1,628,878.28 664,132.17
Development Management
Group Co., Ltd.
Shenzhen Fubao Park
Project funds 69,473.85 184,939.45
Operation Co., Ltd.
Shenzhen Fubao Park
Property service fee 18,301.58
Operation Co., Ltd.
Shenzhen High-tech Zone
Investment and
Property service fee 18,851.92 125,538.20
Development Group Co.,
Ltd.
Shenzhen Environmental
Supervision service fee 141,509.43
Technology Group Co., Ltd.
Shenzhen Environmental
Property service fee 5,141,483.43 5,583,897.63
Technology Group Co., Ltd.
Shenzhen Environmental
Engineering Science and Property service fee 566,875.99
Technology Center Co., Ltd.
Shenzhen Southern
Property service fee 74,213.21 74,269.81
Certification Co., Ltd.
Shenzhen Shenfang
Chuanqi Real Estate Commercial service fee 750,000.00
Development Co., Ltd.
Shenzhen Shenfang
Chuanqi Real Estate Property service fee 1,572,089.22 266,161.65
Development Co., Ltd.
Shenzhen Properties Group
Longgang Development Co., Property service fee 366,311.14 382,009.37
Ltd.
Shenzhen Shenfubao
(Group) Tianjin Industrial Property service fee 1,334,719.77 818,633.95
Development Co., Ltd.
Shenzhen Shenfubao
(Group) Tianjin Investment Property service fee 7,469,518.65 7,403,142.51
and Development Co., Ltd.
Shenzhen Shenfubao Project funds 121,800.16
Content of related party Amount in the previous
Related party Amount in the current period
transactions period
(Group) Co., Ltd.
Shenzhen Shenfubao
Property service fee 2,953,668.31 4,458,923.38
(Group) Co., Ltd.
Shenzhen Shenfubao East
Investment and Project funds 23,477.06
Development Co., Ltd.
Shenzhen Shenfubao East
Investment and Property service fee 767,227.46 605,151.13
Development Co., Ltd.
Shenzhen Shentou Property
Property service fee 26,490.57 52,981.13
Development Co., Ltd.
Shenzhen Shenyue United
Property service fee 4,785,796.84 3,656,843.68
Investment Co., Ltd.
Shenzhen Special Zone
Property service fee 34,256.64 51,384.96
Literature Magazine Co., Ltd.
Shenzhen Sports Industry
Project funds 3,696,271.96
Group Co., Ltd.
Shenzhen Sports Industry
Property service fee 3,247,533.97
Group Co., Ltd.
Shenzhen Sports Center
Operation Management Co., Property service fee 28,178,916.27 5,279,580.87
Ltd.
Shenzhen Investment
Project funds -12,137.73 3,667,431.09
Holdings Co., Ltd.
Shenzhen Investment
Supervision service fee 155,660.38
Holdings Co., Ltd.
Shenzhen Investment
Property service fee 7,911,174.24 7,242,745.72
Holdings Co., Ltd.
Shenzhen Wancheng
Project funds 451,416.98
Logistics Co., Ltd.
Shenzhen Cultural
Enterprise Development Co., Property service fee 323,718.87 372,727.92
Ltd.
Renaissance Shenzhen Bay
Hotel Branch of Shenzhen
Property service fee 283,018.87 283,018.87
Continental Hotel
Management Co., Ltd.
Courtyard by Marriott
Shenzhen Bay Branch of
Property service fee 188,679.28 188,679.28
Shenzhen Continental Hotel
Management Co., Ltd.
Shenzhen Xingye
Property service fee 33,027.52 27,522.94
Transportation Co., Ltd.
Shenzhen Bay (Baoding)
Innovation Development Co., Property service fee 804,956.22 658,180.89
Ltd.
Shenzhen Bay Baolong
Biological Innovation
Property service fee 2,252,056.95
Investment and
Development Co., Ltd.
Shenzhen Bay Technology
Property service fee 76,239,227.65 77,800,192.88
Development Co., Ltd.
Content of related party Amount in the previous
Related party Amount in the current period
transactions period
Shenzhen Bay Area Urban
Construction and Property service fee 1,860,384.10 1,996,166.98
Development Co., Ltd.
Shenzhen Xiangmihu
International Exchange
Property service fee 3,029,758.14 2,408,563.82
Center Development Co.,
Ltd.
Shenzhen Silver Lake
Convention Center (Hotel) Project funds 233,119.27 337,614.68
Co., Ltd.
Shenzhen Silver Lake
Convention Center (Hotel) Supervision service fee 43,867.92
Co., Ltd.
Shenzhen Infinova Limited Property service fee 88,556.50
Shenzhen Infinova Smart
Consulting service fees 101,581.14
Park Technology Co., Ltd.
China Shenzhen Foreign
Trade (Group) Company Property service fee 3,261,063.09 3,053,234.14
Limited
Shenzhen Haitian Building
Property Development Co., Property service fee 148,563.88
Ltd.
Purchase or sale of goods, and rendering or receipt of labor services
(2) Management on commission/contract and commissioned management/contracting-out
Information on the trusteeship management and contracting by the COOEC:
Unit: RMB
Trust
Name of Termination Pricing basis of income/contract
Name of Type of Start date of
entrusting date of custody ing income
entrusted entrusted/contr entrustment/co
party/contractin entrustment/co income/contract recognized in
party/contractor acted assets ntracting
g-out party ntracting ing income the current
period
Shenzhen Shenzhen
Shentou Properties &
Investment November 6, December 31,
Property Resources Market pricing 66,718,852.02
properties 2019 2026
Development Development
Co., Ltd. (Group) Ltd.
Shenzhen Free
Shenzhen
Trade Zone
Shenfubao January 01, December 31,
Security Real estate Market pricing 766,857.32
(Group) Co., 2025 2025
Service Co.,
Ltd.
Ltd.
Shenzhen
Shenzhen
Shenfubao
Shenfubao January 01, December 31,
Municipal Real estate Market pricing 896,553.36
(Group) Co., 2025 2025
Service Co.,
Ltd.
Ltd.
Custody/contracting of related parties
Information on the entrustment management/contracting of the Company
Unit: RMB
Custody
Name of Type of Termination Pricing basis of fees/contracting
Name of Starting date of
entrusting entrusted/contr date of custody -out fees
entrusted entrustment/co
party/contractin acting-out entrustment/co fee/contracting- recognized in
party/contractor ntracting-out
g-out party assets ntracting-out out fee the current
period
Information on the related-party management/contracting
(3) Related party leases
The COOEC acted as the lessor:
Unit: RMB
Lease income recognized in Lease income recognized in
Lessee Type of leased asset
this period previous period
The COOEC acted as lessee:
Unit: RMB
Rental costs for short- Variable lease
term leases and low- payments not included Interest expense on
Increase in right-of-use
value asset leases for in the measurement of Paid rents lease liabilities
assets
Type of simplified processing (if lease liabilities (if assumed
Lessor leased applicable) applicable)
asset Amount in Amount in Amount in Amount in Amount in
Amount in Amount in Amount in Amount in Amount in
the the the the the
the current the current the current the current the current
previous previous previous previous previous
period period period period period
period period period period period
Shenzhen
Investment
Investment
Building 887,194.08 844,905.00 69,473.34 33,604.31
properties
Hotel Co.,
Ltd.
Shenzhen
High-tech
Zone
Developm Investment
ent and properties
Constructi
on Co.,
Ltd.
Shenzhen
Special
Economic
Zone Real Investment
Estate & properties
Properties
(Group)
Co., Ltd.
Shenzhen
Petrel Investment
Hotel Co., properties
Ltd.
Shenzhen
Shenfubao Investment
(Group) properties
Co., Ltd.
Shenzhen Investment 2,791,192. 2,739,416. 7,577,837.
Investment properties 247,497.25 261,658.13 66,246.71
Holdings
Rental costs for short- Variable lease
term leases and low- payments not included Interest expense on
Increase in right-of-use
value asset leases for in the measurement of Paid rents lease liabilities
assets
Type of simplified processing (if lease liabilities (if assumed
Lessor leased applicable) applicable)
asset Amount in Amount in Amount in Amount in Amount in
Amount in Amount in Amount in Amount in Amount in
the the the the the
the current the current the current the current the current
previous previous previous previous previous
period period period period period
period period period period period
Co., Ltd.
Shenzhen
Bay
Technolog
Investment 1,119,654.
y
properties 36
Developm
ent Co.,
Ltd.
Shenzhen
Binjiang Investment
Industrial properties
Co., Ltd.
Hong Kong
HOI PAN
Investment
Developm 192,522.96 146,234.62
properties
ent Co.,
Ltd.
Hebei
Shenbao
Investment Investment
Developm properties
ent Co.,
Ltd.
Related-party leases
(4) Related party guarantees
The Company as the guarantor
Unit: RMB
Whether the
Start date of Maturity date of
The secured party Amount guaranteed guarantee has been
guarantee guarantee
fulfilled
Shenzhen Rongyao
Real Estate 3,491,331,743.56 November 27, 2019 November 20, 2026 No
Development Co., Ltd.
Yangzhou Wuhe Real
Estate Co., Ltd.
Shenzhen
International Trade
Center Property
Management Co., Ltd.
The Company as the guaranteed party
Unit: RMB
Whether the
Start date of Maturity date of
Guarantee Amount guaranteed guarantee has been
guarantee guarantee
fulfilled
Shenzhen Shenda
Credit Enhancement 16,750,000.00 March 29, 2022 March 28, 2025 Yes
Financing Guarantee
Co., Ltd.
Shenzhen Shenda
Credit Enhancement
Financing Guarantee
Co., Ltd.
Shenzhen Shenda
Credit Enhancement
Financing Guarantee
Co., Ltd.
Shenzhen Credit
Guarantee Group Co., 2,732,954.09 January 15, 2024 January 15, 2025 Yes
Ltd.
Shenzhen Credit
Guarantee Group Co., 1,478,768.65 March 19, 2024 March 19, 2025 Yes
Ltd.
Guoren P&C
Insurance Co., Ltd.
Guoren P&C
Insurance Co., Ltd.
Guoren P&C
Insurance Co., Ltd.
Guoren P&C
Insurance Co., Ltd.
Notes to related party guarantee
(5) Information on inter-bank lending of capital of related parties
Unit: RMB
Related party Amount borrowed Start date Maturity date Notes
Borrowed from
Lending
(6) Asset transfer and debt restructuring of related parties
Unit: RMB
Content of related party Amount in the previous
Related party Amount in the current period
transactions period
(7) Remuneration of key officers
Unit: RMB
Item Amount in the current period Amount in the previous period
Remuneration of key officers 6,762,600.04 10,738,322.13
(8) Other related party transactions
(1) Receivables
Unit: RMB
Ending balance Beginning balance
Project Related party Provision for bad Provision for bad
Book balance Book balance
debts debts
Accounts Chengdu Zunxi
receivable Land Co., Ltd.
Dongguan
Shenzhen
Investment
Holdings 1,576,800.00 47,304.00 270,000.00 8,100.00
Investment
Development Co.,
Ltd.
Guoren P&C
Insurance Co., 1,182,500.00 35,475.00
Ltd.
Hebei Shenbao
Business
Management Co.,
Ltd.
Hebei Shenbao
Investment
Development Co.,
Ltd.
Kunpeng Industrial
Source Innovation
Center 182,417.35 5,472.52
(Shenzhen) Co.,
Ltd.
Shantou Huafeng
Real Estate
Development Co.,
Ltd.
Shenzhen
Chuangke
Development Co.,
Ltd.
Shenzhen Credit
Guarantee Group 157,200.00 4,716.00
Co., Ltd.
Shenzhen High-
tech Zone
Development and 854,905.02 25,647.15 2,837,150.55 85,114.52
Construction Co.,
Ltd.
Shenzhen
Convention and
Exhibition Center 923,483.23 27,704.50 936,380.65 28,091.42
Management Co.,
Ltd.
Shenzhen Special
Economic Zone
Real Estate & 2,974,946.80 89,248.40 5,548,078.33 347,553.20
Properties (Group)
Co., Ltd.
Shenzhen Talent 46,422.34 1,392.67
Recruitment
Ending balance Beginning balance
Project Related party Provision for bad Provision for bad
Book balance Book balance
debts debts
International
(Group) Co., Ltd.
Research Institute
of Tsinghua
University in
Shenzhen
Shenzhen Total
Logistics Service 230,181.30 6,905.44 466,227.00 13,986.81
Co., Ltd.
Shenzhen
Shenzhen-Hong
Kong Science and
Technology
Innovation Park
Operation and
Development Co.,
Ltd.
Shenzhen
Shenzhen-Hong
Kong Science and
Technology
Innovation
Cooperation Zone
Development Co.,
Ltd.
Shenzhen
Shenshan Special
Cooperation Zone
Shenzhen
Investment 607,505.15 18,228.15 202,435.05 6,076.05
Holdings
Investment
Development Co.,
Ltd.
Shenzhen Urban
Construction and
Development
(Group) Co., Ltd.
Shenzhen Grand
Industrial Zone
(Shenzhen Export
Processing Zone) 703,768.73 71,553.06 266,132.23 58,423.97
Development
Management
Group Co., Ltd.
Shenzhen Fubao
Park Operation 5,548.18 166.45 42,352.90 1,270.59
Co., Ltd.
Shenzhen High-
tech Zone
Investment and 74,553.96 2,236.62
Development
Group Co., Ltd.
Shenzhen Haitian
Building Property 1,600.00 48.00
Development Co.,
Ending balance Beginning balance
Project Related party Provision for bad Provision for bad
Book balance Book balance
debts debts
Ltd.
Shenzhen
Environmental
Technology Group
Co., Ltd.
Shenzhen
Jiaotongchang
Station
Construction and
Development Co.,
Ltd.
Shenzhen
Shenfubao
(Group) Tianjin
Industrial
Development Co.,
Ltd.
Shenzhen
Shenfubao
(Group) Tianjin
Investment and
Development Co.,
Ltd.
Shenzhen
Shenfubao 2,508,161.05 96,587.42 1,671,102.46 52,471.28
(Group) Co., Ltd.
Shenzhen
Shentou Property
Development Co.,
Ltd.
Shenzhen
Shenyue United
Investment Co.,
Ltd.
Shenzhen Sports
Industry Group 52,490.38 1,574.71 4,402,968.12 132,089.04
Co., Ltd.
Shenzhen Sports
Fashion Culture
and Sports 3,777.44 113.32 2,429.40 72.88
Development Co.,
Ltd.
Shenzhen Sports
Center Operation
Management Co.,
Ltd.
Shenzhen
Investment 4,427,162.25 205,487.27 5,588,052.61 225,329.98
Holdings Co., Ltd.
Shenzhen
Wancheng 171,749.77 5,152.49
Logistics Co., Ltd.
Shenzhen Cultural
Enterprise 360,277.84 10,808.34
Development Co.,
Ending balance Beginning balance
Project Related party Provision for bad Provision for bad
Book balance Book balance
debts debts
Ltd.
Renaissance
Shenzhen Bay
Hotel Branch of
Shenzhen 1,672,307.44 50,169.22
Continental Hotel
Management Co.,
Ltd.
Courtyard by
Marriott Shenzhen
Bay Branch of
Shenzhen 402,226.64 12,066.80
Continental Hotel
Management Co.,
Ltd.
Shenzhen Bay
(Baoding)
Innovation 148,995.79 4,469.87 182,228.13 5,466.84
Development Co.,
Ltd.
Shenzhen Bay
Baolong Biological
Innovation
Investment and
Development Co.,
Ltd.
Shenzhen Bay
Technology
Development Co.,
Ltd.
Shenzhen
Xiangmihu
International
Exchange Center
Development Co.,
Ltd.
Shenzhen Silver
Lake Convention
Center (Hotel) Co.,
Ltd.
Shenzhen Infinova
Smart Park
Technology Co.,
Ltd.
China Shenzhen
Foreign Trade
(Group) Company
Limited
Total 153,499,802.93 8,832,348.24 146,264,953.29 5,871,324.78
Hebei Shenbao
Investment
Contract assets 393,583.65 215,129.91
Development Co.,
Ltd.
Shenzhen Grand 118,043.22
Industrial Zone
Ending balance Beginning balance
Project Related party Provision for bad Provision for bad
Book balance Book balance
debts debts
(Shenzhen Export
Processing Zone)
Development
Management
Group Co., Ltd.
Shenzhen
Investment 88,223.00 88,223.00
Holdings Co., Ltd.
Shenzhen
Xiangmihu
International
Exchange Center
Development Co.,
Ltd.
Shenzhen Urban
Construction
Mingyuan
Industrial Co., Ltd.
Total 481,806.65 454,653.07
Guangdong
Jianbang Group
Other receivables 48,908.08 24,454.04
(Huiyang)
Industrial Co., Ltd.
Shenzhen High-
tech Zone
Development and 51,931.46 1,557.94 35,605.73 1,068.17
Construction Co.,
Ltd.
Shenzhen
Convention and
Exhibition Center 1,000.00 30.00 1,000.00 30.00
Management Co.,
Ltd.
Shenzhen Special
Economic Zone
Real Estate & 100,000.00 80,000.00 100,000.00 30,000.00
Properties (Group)
Co., Ltd.
Shenzhen
Shenzhen-Hong
Kong Science and
Technology
Innovation Park
Operation and
Development Co.,
Ltd.
Shenzhen Binjiang
Industrial Co., Ltd.
Shenzhen Grand
Industrial Zone
(Shenzhen Export
Processing Zone) 105,518.00 30,165.54 102,583.54 10,258.35
Development
Management
Group Co., Ltd.
Ending balance Beginning balance
Project Related party Provision for bad Provision for bad
Book balance Book balance
debts debts
Shenzhen Qianhai
Advanced
Information
Service Co., Ltd.
Shenzhen
Shenfubao 201,264.60 27,979.38 81,264.60 8,126.46
(Group) Co., Ltd.
Shenzhen
Shenfubao East
Investment and 350,768.00 105,023.04 350,000.00 35,000.00
Development Co.,
Ltd.
Shenzhen
Shentou Property
Development Co.,
Ltd.
Shenzhen
Investment 685,740.90 397,444.67 685,740.90 278,254.03
Holdings Co., Ltd.
Shenzhen Xinhai
Holdings
Shenzhen Xinhai
Rongyao Real
Estate 375,068,984.55 231,729,731.18 375,068,984.55 231,729,731.18
Development Co.,
Ltd.
Shenzhen Tianjun
Industrial Co., Ltd.
Shenzhen Bay
Baolong Biological
Innovation
Investment and
Development Co.,
Ltd.
Shenzhen Bay
Technology
Development Co.,
Ltd.
Shenzhen Wufang
Ceramic Industry 1,747,264.25 1,747,264.25 1,747,264.25 1,747,264.25
Co., Ltd.
Hong Kong HOI
PAN Development 48,130.74 1,443.92 48,130.74 1,443.92
Co., Ltd.
Total 605,106,537.04 365,559,441.05 603,034,211.39 365,114,483.34
(2) Payables
Unit: RMB
Project Related party Ending book balance Beginning book balance
Guoren P&C Insurance Co.,
Accounts payable 200,000.00
Ltd.
Project Related party Ending book balance Beginning book balance
Shenzhen Security Service
Co., Ltd.
Shenzhen General Institute
of Architectural Design and 807,748.10 1,316,929.34
Research Co., Ltd.
Shenzhen Qianhai Advanced
Information Service Co., Ltd.
Shenzhen Shentou Property
Development Co., Ltd.
Shenzhen Tefa Port Service
Co., Ltd.
Shenzhen Tianjun
Investment Development 26,905.51
Co., Ltd.
Total 10,623,706.14 11,043,331.33
Guoren P&C Insurance Co.,
Other payables 17,210.85
Ltd.
Hebei Shenbao Investment
Development Co., Ltd.
Shenzhen Credit Guarantee
Group Co., Ltd.
Shenzhen Special Economic
Zone Real Estate & 588,075.00
Properties (Group) Co., Ltd.
Shenzhen Talent
Recruitment International 147,132.37 147,132.37
(Group) Co., Ltd.
Shenzhen Free Trade Zone
Life Service Co., Ltd.
Shenzhen Urban
Construction and
Development (Group) Co.,
Ltd.
Shenzhen Grand Industrial
Zone (Shenzhen Export
Processing Zone) 133,078.00 86,247.00
Development Management
Group Co., Ltd.
Shenzhen Guohui Hotel Co.,
Ltd.
Shenzhen Environmental
Engineering Science and 89,974.40
Technology Center Co., Ltd.
Shenzhen Southern
Certification Co., Ltd.
Shenzhen Properties Group
Longgang Development Co., 479,960.00
Ltd.
Shenzhen Shenfubao
(Group) Co., Ltd.
Shenzhen Shenfubao East 175,092.68 369,211.02
Investment and
Project Related party Ending book balance Beginning book balance
Development Co., Ltd.
Shenzhen Shentou Property
Development Co., Ltd.
Shenzhen Sports Fashion
Culture and Sports 60,000.00
Development Co., Ltd.
Shenzhen Wangyu Center
Operation Management Co., 2,000.00
Ltd.
Shenzhen Cultural
Enterprise Development Co., 727,680.00 743,680.00
Ltd.
Shenzhen Tian'an
International Building
Property Management Co.,
Ltd.
Shenzhen Bay Technology
Development Co., Ltd.
Shenzhen Bay Area Urban
Construction and 360,752.18 360,752.18
Development Co., Ltd.
Shenzhen Property Jifa
Warehousing Co., Ltd.
Yangzhou Tourism
Development Property Co., 372,171,012.79 345,929,298.79
Ltd.
Total 652,896,974.05 630,109,141.99
XV. Share-based payments
□ Applicable ? Not applicable
□ Applicable ? Not applicable
□ Applicable ? Not applicable
□ Applicable ? Not applicable
XVI. Commitments and contingencies
Significant commitments on the balance sheet date
Large-value contracts that are being performed or to be performed
Amount of the same period of last
Item Amount in this period/RMB
year/RMB
Large-value contracts that have been signed but
not recognized in the financial statements
(1) Significant contingencies on the balance sheet date
(1) Litigation matters concerning the transfer of Jiabin Building
In 1993, the Company signed the Contract for Transfer of Development Rights and Interests of Jiabin
Building with Shenzhen Jiyong Property Development Co., Ltd. (current name, hereinafter referred to
as "Jiyong Company"). Due to the ineffective execution of the contract, the Company subsequently filed
a series of lawsuits against the parties involved in the project, but the outcome of the lawsuits failed to
enable the Company to obtain the benefits claimed. Therefore, the Company has made provision for
bad debts in the full amount of RMB 93.81 million for accounts receivable from jiyong Company for the
transfer of Jiabin Building. On October 31, 2018, the Shenzhen Intermediate People's Court made a
civil judgment, ruling that the Company's application for the bankruptcy of Jiyong Company was not
accepted. The Company appealed against the ruling. On April 29, 2019, the Guangdong Provincial
Higher People's Court ruled to reject the Company's appeal and uphold the original ruling. At the
issuance date of the report, there is no new development in the case.
(2) Litigation case concerning Shenzhen Basepoint Intelligence Co., Ltd.
On August 20, 2017, Shenzhen Facility Management Community Co., Ltd. (hereinafter referred to as
FMC) signed the Software Service Contract for Smart Facility Management Platform of China
Merchants Property with China Merchants Group. Meanwhile, FMC intended to purchase a RMB 3
million facility management system (covering 31 items) for this project from Shenzhen Basepoint
Intelligence Co., Ltd. (hereinafter referred to as "Basepoint"). In the project delivery, only 11 items
delivered by Basepoint passed the acceptance inspection, leaving the full delivery unfinished. Therefore,
FMC failed to reach a consensus on payment with Basepoint. In 2021, Basepoint suedFMC and froze
FMC's funds of RMB 3 million. The judgment of the first instance dated August 10, 2022 ruled that FMC
shall compensate RMB 3 million to Basepoint.
FMC, dissatisfied with the first-instance judgment, filed an appeal. The second-instance hearing was
held on August 11, 2023. On April 19, 2024, the Shenzhen Intermediate People's Court issued the
Ruling Letter (2023) Y03 MZNo. 3914, which revoked the Judgment Letter (2021) Y0304 MC No. 55151
issued by the People's Court of Futian District, Shenzhen, and remanded the case for retrial. The case
is currently in the retrial stage.
(3) Arbitration case concerning private lending dispute involving Shenzhen Rongyao Real Estate
Development Co., Ltd.
As Shenzhen Xinhai Rongyao Real Estate Development Co., Ltd. (hereinafter referred to as "Xinhai
Rongyao") and Shenzhen Xinhai Holdings Co., Ltd. (hereinafter referred to as "Xinhai Holdings") failed
to repay the loan principal and interest to Shenzhen Rongyao Real Estate Development Co., Ltd.
(hereinafter referred to as "Rongyao Real Estate") on schedule, Rongyao Real Estate has applied to
the Shenzhen Court of International Arbitration for arbitration, requesting a ruling that the respondents,
Xinhai Rongyao and Xinhai Holdings, repay to Rongyao Real Estate the entire loan principal of RMB
as "Xinhai Investment"), Shenzhen Chengjian Real Estate Management Co., Ltd. (hereinafter referred
to as "Chengjian Real Estate"), Shenzhen Lianghong Industry Co., Ltd. (hereinafter referred to as
"Lianghong Industry"), and Shenzhen Shenguotou Tiancheng Investment Co., Ltd. (hereinafter referred
to as "Tiancheng Investment") shall bear joint and several liability for the obligations and responsibilities
of Xinhai Rongyao and Xinhai Holdings under the first arbitration claim; it was ruled that all the
respondents shall bear the attorney fees of RMB 1.2 million paid by Rongyao Real Estate, and all the
respondents shall bear the arbitration costs and property preservation expenses of this case. The
provisional total amount of the above stands at RMB722.1822 million.
On August 7, 2023, Xinhai filed a lawsuit with the Shenzhen Intermediate People's Court to confirm the
validity of the arbitration agreement. After hearing the case, the court rejected their application. The
case was heard at the Shenzhen Court of International Arbitration on August 30, 2024. On June 26,
indicating that Rongyao Real Estate had successfully preserved an additional batch of the respondents'
property.
On September 1, 2025, the Shenzhen Court of International Arbitration issued award No. (2023)
SGZSC 2970, ruling that: Xinhai Rongyao and Xinhai Holdings shall repay to Rongyao Real Estate the
entire loan principal of RMB 531,972,922.51 and the interest calculated at an annual rate of 11% for the
corresponding period, tentatively calculated to be RMB 122,139,715.52 as of March 31, 2023, with
subsequent interest calculated at an annual rate of 11% until the date of actual full repayment; xinhai
Investment, Chengjian Real Estate, Lianghong Industry, and Tiancheng Investment shall bear joint and
several liability for the payment obligations of Xinhai Rongyao and Xinhai Holdings to Rongyao Real
Estate; the respondents shall bear the attorney's fees of RMB 220,000, the property preservation fee of
RMB 5,000, and the preservation insurance fee of RMB 288,872.88 paid by Rongyao Real Estate; the
respondents shall bear the arbitration fee of RMB 3,440,688.3 already paid by Rongyao Real Estate.
Rongyao Real Estate has applied to the Shenzhen Intermediate People's Court for compulsory
enforcement. On December 25, 2025, Rongyao Real Estate received the Enforcement Ruling and the
Notice of Seizure, Detain, and Freezing of Property from the Shenzhen Intermediate People's Court,
stating that the court had ruled to seize and freeze a batch of property.
(4) Arbitration case concerning equity transfer dispute of Shenzhen Properties & Resources
Development (Group) Ltd.
As Xinhai Rongyao failed to pay the compensation for investment loss to the Company as agreed, the
Company has applied to the Shenzhen Court of International Arbitration for arbitration. It was requested
to rule that: Xinhai Rongyao shall pay RMB 170,556,833.33 to the Comapny as compensation for
investment losses; sichuan Trust Company does not legally possess the 1% equity of Rongyao Real
Estate registered in its name, confirming that Xinhai Rongyao is the actual owner of the said 1% equity;
xinhai Rongyao shall pledge and register its actually-held 31% equity of Rongyao Real Estate to the
Company; sichuan Trust Company shall facilitate the registration procedures for the pledge of the 1%
equity of Rongyao Real Estate in the aforesaid third arbitration claim; xinhai Rongyao and Sichuan
Trust Company shall bear the attorney fees of RMB 780,000 paid by the Company; that Xinhai
Rongyao and Sichuan Trust Company shall bear all the arbitration costs and property preservation
expenses of this case. The provisional total amount involved in these rulings amounts to RMB
In August 2023, Xinhai Rongyao filed a lawsuit with the Shenzhen Intermediate People's Court to
confirm the validity of the arbitration agreement, which led to a temporary suspension of the case by the
arbitration tribunal. The Shenzhen Intermediate People's Court later dismissed the opposing party's
application, and the case was heard at the Shenzhen Court of International Arbitration on December 14,
On April 12, 2024, an arbitration award was received, ruling that Xinhai Rongyao shall pay SZPRD
compensation of RMB 50 million for investment loss; xinhai Rongyao shall pledge and register its
actually-held 30% equity of Rongyao Real Estate to the Company; xinhai Rongyao shall compensate
SZPRD for legal fees of RMB 150,000, preservation fees of RMB 3,000, preservation insurance costs
of RMB 41,120.84, and arbitration fees of RMB 658,188.60. In total, Xinhai Rongyao is required to pay
the Company RMB 50,852,300.
As Xinhai Rongyao failed to fulfill the award as scheduled, the Company has applied for compulsory
enforcement. On June 27, 2024, the 30% equity of Rongyao Real Estate held by Xinhai Rongyao was
finally pledged to the Company through the court enforcement procedure and continued to be sealed up
and frozen. On November 4, 2024, the judicial freezing was immediately enforced after the 1% equity of
Rongyao Real Estate was transferred to Xinhai Rongyao. At the issuance date of the report, there is no
new development in the case.
(5) Litigation case concerning contract dispute of Shenzhen Rongyao Real Estate Development Co.,
Ltd.
On November 1, 2021, Rongyao Real Estate, Xinhai Rongyao, Shenzhen Mingde Xincheng Investment
Consulting Co., Ltd. (hereinafter referred to as "Mingde Company") and Shenzhen Yinian Real Estate
Development Co., Ltd. (hereinafter referred to as "Yinian Company") signed the Four-party Agreement,
which stipulated that Rongyao Real Estate shall assist the parties to transfer the subject rights and
interests into the project designated by Yinian Company, and Yinian Company shall make payment to
the designated account of Rongyao Real Estate in full and on schedule as agreed. Subsequently,
Shenzhen Hezheng Real Estate Group Co., Ltd. (hereinafter referred to as "Hezheng Company")
issued a Reply Letter and a Payment Plan Letter, committing that if Yinian Company fails to repay on
schedule, Hezheng Company will bear the responsibility for repayment to Rongyao Real Estate.
Due to the aforementioned obligor's failure to make timely payments, which constitutes a serious
breach of the agreement and severely undermines the legitimate rights and interests of Rongyao Real
Estate, the latter has filed a lawsuit with the court, demanding that the relevant obligor repay the
outstanding equity transfer payment of RMB 65,250,598.72 and pay the liquidated damages for
overdue payment of RMB 7,600,806.70 (calculated at a daily rate of 0.03% on the unpaid principal of
the equity transfer payment, provisionally calculated up to December 5, 2023, and should be actually
calculated to the date of full repayment). On April 22, 2025, Rongyao Real Estate received the Notice of
Property Preservation Results from the court, indicating that Rongyao Real Estate had successfully
preserved an additional batch of the defendant's property.
On September 29, 2025, the People's Court of Longhua District, Shenzhen issued Civil Judgment
(2024) Y0309 MC11352, ruling that Yinian Company shall, within ten days from the effective date of the
judgment, pay Rongyao Real Estate the remaining non-agricultural indicator equity transfer payment of
RMB 65,250,598.72 and liquidated damages (calculated at a daily rate of 0.03% to be RMB
at a daily rate of 0.03% from December 15, 2023 until the date of full payment); xinhai Rongyao,
Mingde Company, and Hezheng Company shall bear joint and several liability for the repayment of the
aforementioned debts of Yinian Company.
Hezheng Company, dissatisfied with the first-instance judgment, has filed an appeal, and the case is
currently in the second-instance stage.
(6) The dispute case regarding the loan contract of Shenzhen Rongyao Real Estate Development Co.,
Ltd., Shenzhen Qianhai Advanced Information Service Co., Ltd. and Shenzhen Xinhai Rongyao Real
Estate Development Co., Ltd.
On November 5, 2021, Rongyao Real Estate and Shenzhen Qianhai Advanced Information Service Co.,
Ltd. (a related company of Xinhai, hereinafter referred to as Qianhai Advanced Information Service)
signed the Agreement on Advance Payment and Tax Payment, stipulating all taxes and fees arising
from the Relocation Compensation and Resettlement Agreement involved in the case shall be borne by
Qianhai Advanced Information Service. On the same day, Xinhai Rongyao issued a Letter of
Commitment to Bear the Relevant Taxes and Fees for Relocation Compensation, pledging to provide
joint and several guarantee for the obligation of Qianhai Advanced Information Service to pay all taxes
and fees arising from the Relocation Compensation and Resettlement Agreement.
In order to expedite the project development and mitigate the substantial economic losses caused by
the serious delay in the project schedule to Rongyao Real Estate, Rongyao Real Estate agreed to the
application from Xinhai and advanced relevant taxes and fees totaling RMB10,720,575.27 on behalf of
Qianhai Advanced Information Service on July 20, 2021 and January 26, 2022. On November 30, 2023,
all parties signed the Confirmation Letter of Claims and Debts, confirming that as provisionally
calculated up to June 30, 2023, the amount to be jointly repaid by Qianhai Advanced Information
Service and Xinhai Rongyao to Rongyao Real Estate is RMB 12.9167 million, comprising a principal of
RMB 10.7206 million and interest of RMB 2.1961 million; the parties agreed that the interest shall
accrue at 11% from July 1, 2023, until the date of full and final settlement by Party B to Party A. Qianhai
Advanced Information Service and Xinhai Rongyao failed to make repayments as agreed.
The breach of contract by Xinhai has seriously violated the terms of relevant agreements and
commitment letters. Rongyao Real Estate has filed a lawsuit with the Longhua District People's Court.
On April 12, 2025, the Longhua District People's Court of Shenzhen Municipality issued the civil
judgment (2025) Y0309 MC8262, ruling that the defendant Qianhai Advanced Information Service shall
repay the plaintiff Rongyao Real Estate the principal of the advanced payment of RMB 10,720,575.27
and the interest thereon within ten days from the effective date of this judgment (the interest on the
principal of RMB 8,430,575.27 shall be calculated at an annual interest rate of 11% from July 20, 2021,
until the date of actual settlement; the interest on the principal of RMB 2,290,000 shall be calculated at
an annual interest rate of 11% from January 26, 2022, until the date of actual settlement). The
defendant Xinhai Rongyao shall bear 50% of the compensation liability for the portion of the first debt of
the defendant Qianhai Advanced Information Service that cannot be repaid. The other claims of the
plaintiff Rongyao Real Estate were dismissed.
Rongyao Real Estate, dissatisfied with the first-instance judgment, has filed an appeal, and the case is
currently in the second-instance stage.
(7) The contract dispute case involving Shenzhen Rongyao Real Estate Development Co., Ltd.,
Shenzhen Qianhai Advanced Information Service Co., Ltd., Shenzhen Xinhai Rongyao Real Estate
Development Co., Ltd. and Shenzhen Xinhai Holdings Co., Ltd.
During the demolition process of the Bangling Project, Qianhai Advanced Information Service
repeatedly sent letters to Rongyao Real Estate requesting an advance payment of the demolition
service fees and pledging to take the amount prepaid by the latter as the principal and pay the
occupancy fee to the latter at an annualized interest rate of 11% based on the actual duration the
prepaid amount is actually utilized. If Qianhai Advanced Information Service fails to complete the
demolition work on schedule, Rongyao Real Estate has the right to request Xinhai to refund the
principal difference and relevant occupancy fee. Additionally, Rongyao Real Estate is entitled to impose
a penalty interest of 50% of the aforementioned 11% interest rate on the difference based on the
duration of the occupancy. Xinhai Rongyao and Xinhai Holdings shall be jointly and severally liable for
the above debts.
In order to expedite the project development and mitigate the substantial economic losses caused by
the serious delay in the project schedule to Rongyao Real Estate, Rongyao Real Estate agreed to the
application from Xinhai and advanced the relevant demolition service fees. On November 30, 2023,
Rongyao Real Estate signed the Confirmation Letter of Claims and Debts with Xinhai Rongyao, Qianhai
Advanced Information Service, and Xinhai Holdings, confirming that as provisionally calculated up to
June 30, 2023, the total amount to be jointly repaid by Xinhai to Rongyao Real Estate is RMB 12.3768
million.
As Xinhai has seriously violated the terms of relevant agreements and commitment letters, Rongyao
Real Estate has filed a lawsuit with the Longhua District People's Court. On October 30, 2025, the
Longhua District People's Court of Shenzhen Municipality issued the civil judgment (2025) Y0309
MC15386, ruling that the defendants Qianhai Advanced Information Service, Xinhai Rongyao, and
Xinhai Holdings shall pay the plaintiff Rongyao Real Estate the interest on demolition service fees
amounting to RMB 12.3768 million within ten days from the effective date of this judgment; the other
claims of the plaintiff Rongyao Real Estate were dismissed.
The judgment in this case is being served on the defendants by public announcement and has not yet
taken effect.
(8) On the dispute between Shenzhen Rongyao Real Estate Development Co., Ltd. and Shenzhen
Herunxiang Trading Co., Ltd. & Shenzhen Xinhai Rongyao Real Estate Development Co., Ltd. over the
creditor's right and debt of the registered tax payment for the transfer of the certified real estate of the
former Shenfa Factory.
In order to accelerate the development progress of the Bangling project, on October 18, 2021,
Shenzhen Herunxiang Trading Co., Ltd. (hereinafter referred to as Herunxiang) and Xinhai Rongyao
issued an Application Letter for Advancing Payment of Taxes and Fees Related to the Transfer and
Cancellation of the Certified Property of the Former Shenfa Factory to Rongyao Real Estate. The
application letter stated that due to the financial difficulties of Herunxiang, they applied to Rongyao Real
Estate to advance the taxes and fees amounting to a total of approximately RMB10 million to RMB15
million (the final amount to be determined by the property registration department) incurred by
Herunxiang for the transfer registration of the certified property of the former Shenfa Factory. These
taxes and fees will subsequently be repaid by Rongyao Real Estate on behalf of Herunxiang.
On November 5, 2021, Xinhai Rongyao issued another Letter of Commitment for Repayment to
Rongyao Real Estate, pledging to subsequently refund the taxes and fees as well as interests incurred
on behalf of Herunxiang, and agreed that the proceeds from the collaborative projects such as Guanlan
Bengling could be used to offset the guaranteed payments under this Letter of Commitment on a
priority basis. To expedite the project development progress, Rongyao Real Estate advanced the
transfer taxes, fees, and registration fees for the Shenfa Factory, totaling RMB 20,042,800, on August 2,
As Herunxiang and Xinhai Rongyao failed to repay the principal and interest as agreed, Rongyao Real
Estate has filed a lawsuit with the Longhua District People's Court of Shenzhen Municipality. On
November 27, 2025, Rongyao Real Estate received the court's judgment, which ruled that the
defendant Herunxiang shall repay the plaintiff Rongyao Real Estate the principal of the advanced
payment of RMB 20,042,817.72 and the interest thereon (calculated on the basis of RMB
settlement); the defendant Xinhai Rongyao shall bear 50% of the compensation liability for the portion
of the first debt of the defendant Herunxiang that cannot be repaid to the plaintiff Rongyao Real Estate.
Rongyao Real Estate has filed an appeal in accordance with the law. The service of process on
Herunxiang is being conducted by public announcement, and the case has not yet been formally filed.
(9) The lawsuit case regarding the property management fees of Shenzhen Xuansheng Industrial
Development Co., Ltd.
Part of the Overseas Friendship Building, located at No. 12 Yingchun Road, Luohu District, Shenzhen,
is owned by the United Front Work Department of Shenzhen Municipal Party Committee, and
Shenzhen Jinhailian Property Management Co., Ltd. (hereinafter referred to as Jinhailian) has been
authorized by the United Front Work Department of Shenzhen Municipal Party Committee to manage
the said property. On December 31, 2006, Jinhailian and Shenzhen Xuansheng Industrial Development
Co., Ltd. (hereinafter referred to as "Xuansheng") signed the Property Management Agreement of
Overseas Friendship Building, which stipulated that Xuansheng Company shall provide property
management services to Jinhailian, and Jinhailian shall pay property management fees to Xuansheng
Company for certain floors of the Overseas Friendship Building, including the first floor, floors 3-8 at the
rate of RMB 5 per square meter.
On April 24, 2024, Jinhailian received a summons from the Luohu District People's Court of Shenzhen.
Xuansheng sued Jinhailian for a dispute over a property service contract, with the subject matter of the
lawsuit amounting to RMB 1,869,272 (Xuansheng sued Jinhailian Company for the payment of property
management fees, water and electricity fees, air conditioning fees, and late fees for the 8th-10th floors,
On June 13, 2024, the Luohu District People's Court of Shenzhen made a first-instance judgment,
ruling that Jinhailian shall pay a total of RMB 327,250.18 for property management fees, water fees, air
conditioning fees and late payment penalties for floors 8-10 of Overseas Friendship Building from June
payment penalties from January 1, 2019 to February 29, 2024, at the rate of RMB 3 per square meter.
The total amount stands at RMB 419,082.07 (the property management fees for floors 9-10 and the
Not satisfied with the judgment of the first instance, Jinhailian filed an appeal. On November 21, 2025,
Jinhailian received the second-instance judgment from the Shenzhen Intermediate People's Court,
which rejected Jinhailian's appeal and upheld the original judgment of the first instance. On December
amounts determined by the first-instance judgment to Xuansheng, and this case has been closed.
(10) Arbitration case concerning the contract dispute (issuance of invoices) between Shenzhen
Rongyao Real Estate Development Co., Ltd. and Shenzhen Qianhai Advanced Information Service Co.,
Ltd.
Rongyao Real Estate and Qianhai Advanced Information Service signed the "Urban Renewal Entrusted
Service Agreement" (Contract No.: QHGD-JS-18-005) on December 24, 2018, which stipulated that
Qianhai Advanced Information Service would provide Rongyao Real Estate with demolition services for
the urban renewal project in the Bangling area of Guanlan Sub-district, Longhua District, Shenzhen.
Rongyao Real Estate has paid the vast majority of the amount as agreed in the contract, totaling RMB
value-added tax invoices totaling RMB 219,980,400 in full as agreed in the contract.
Rongyao Real Estate has sent several "Reminder Letters" to Qianhai Advanced Information Service,
requesting it to issue the invoices within a specified period, but Qianhai Advanced Information Service
has still failed to do so on schedule. Rongyao Real Estate has applied to the Shenzhen Court of
International Arbitration for arbitration, and the case has not yet been ruled on.
(11) Arbitration case concerning the dispute over advance payments (Wanli Factory) by Zhang
Tenghong, Yang Feng, Li Yuxiang, and Zhu Jiandong among Shenzhen Rongyao Real Estate
Development Co., Ltd., Shenzhen Xinhai Holding Co., Ltd., Shenzhen Xinhai Rongyao Real Estate
Development Co., Ltd.
Yang Feng, Li Yuxiang and Zhu Jiandong (hereinafter referred to as "the three individuals") purchased
the property involved in the case from Wanli Flocking Factory and Huali Flocking & Blister Products Co.,
Ltd. (hereinafter referred to as "Huali Factory") in July 2019 and signed a "Transfer Agreement". The
actual controller of both Wanli Flocking Factory and Huali Factory is Lin Minghai. Xinhai Holdings and
its actual controller Zhang Tenghong provided a guarantee to ensure that the three individuals paid the
full transfer amount to Wanli Flocking Factory and Huali Factory as stipulated in the aforementioned
"Transfer Agreement". As of June 30, 2021, the three individuals still owed Wanli Flocking Factory and
Huali Factory RMB 2 million, RMB 11.31 million, and RMB 3.07 million, respectively. After deducting the
RMB 3 million in interest paid by Xinhai on their behalf, the total outstanding principal was RMB 16.37
million. According to the agreement, the three individuals also needed to pay interest totaling
approximately RMB 6.13 million (for the interest period from January 7, 2020 to June 30, 2021), with a
combined total of principal and interest of approximately RMB 22.48 million.
Since the demolished property corresponding to Wanli Flocking Factory had previously obtained a
disposition decision from government departments through the process of resolving historical issues,
the government departments required that the demolition compensation agreement must be signed by
Wanli Flocking Factory and Rongyao Real Estate, and the land acquisition agreement must be signed
by Wanli Flocking Factory and the District Planning and Natural Resources Bureau. However, when
signing the demolition compensation agreement, Xinhai Rongyao and Qianhai Advanced Information
Service negligently failed to accurately verify this situation, and Rongyao Real Estate signed a
demolition compensation agreement with the three individuals and paid the relevant demolition
compensation.
After multiple communications, Lin Minghai made it clear that if the issue of the debt owed by the three
individuals was not resolved, he would not cooperate in signing the two agreements. To smoothly
advance the project progress, Rongyao Real Estate paid RMB 7,187,264.15, RMB 10,000,000.00, and
RMB 7,365,970.35 to Lin Minghai on behalf of the three individuals, and signed a "Creditor's Rights
Transfer Notice" upon the request of Xinhai Holdings and Xinhai Rongyao. As of now, the parties have
not yet repaid the relevant transfer principal of RMB 24,553,234.50 and the related interest (calculated
at an annual interest rate of 11%, referencing other similar payments owed by the respondent to the
applicant). Rongyao Real Estate applied to the Shenzhen Court of International Arbitration for
arbitration on October 13, 2025, and the case is still under review for filing.
(12) As a real estate developer, the Company has provided mortgage loan guarantee and paid loan
deposits for buyers of commercial housing according to the operating practice of the real estate industry.
As of December 31, 2025, the balance of deposits for which the guarantee hasn't yet been released
stood at RMB 1,136,395.96, and the said guarantee will be released upon the full repayment of the
mortgage loans.
As a real estate developer, the Company has provided mortgage loan guarantee for buyers of
commercial housing in accordance with the operating practice of the real estate industry. As of
December 31, 2025, the balance of the guarantee that has not been released was RMB
(2) Notes shall be given even if there were no significant contingencies required to be disclosed
by the Company
The Company has no significant contingencies required to be disclosed.
XVII. Events after the balance sheet date
Unit: RMB
Impact number on financial
Reasons why the impact
Item Contents position and operating
number cannot be estimated
results
Proposed dividend per 10 shares (RMB) 0
Proposed bonus shares per 10 shares (shares) 0.20
Proposed shares converted per 10 shares held (shares) 0
Dividend per 10 shares declared upon deliberation and
approval (RMB)
Bonus shares per 10 shares declared upon deliberation
and approval (shares)
Number of shares converted per 10 shares declared upon
deliberation and approval (shares)
(1) Retrospective restatement method
Unit: RMB
Names of statement items
Contents of correction of
Processing procedure affected of comparative Cumulative impact
accounting errors
periods
(2) Prospective application method
Contents of correction of accounting Reasons for adopting the prospective
Approval procedure
errors application method
(1) Exchange of non-monetary assets
(2) Replacement of other assets
Unit: RMB
Profit from
discontinued
operations
Income tax
Item Revenue Costs Total profits Net profit attributable to
expenses
owners of the
parent
company
Other explanations:
Segment information
Determination basis and accounting policies for reporting segments
Financial information of reporting segments
Unit: RMB
Real estate Property Inter-segment
Item Asset operation Total
business management offset
Operating revenue 566,898,152.30 1,637,200,390.78 179,189,706.94 2,383,288,250.02
Operating costs 352,384,575.15 1,302,960,305.27 81,813,841.32 1,737,158,721.74
Total assets 10,427,729,656.34 4,398,033,757.49 602,364,539.91 15,428,127,953.74
Total liabilities 8,180,210,875.06 3,830,011,110.26 183,660,051.35 12,193,882,036.67
(3) If the Company has no reporting segments, or cannot disclose the total assets and total
liabilities of each reporting segment, the reasons shall be stated.
(4) Other notes
XIX. Notes to the main items of the parent company's financial statements
(1) Disclosure by aging
Unit: RMB
Aging Ending book balance Beginning book balance
Within 1 year (including 1 year) 2,720,519.78 2,345,620.53
Over 3 years 96,837,029.35 96,824,380.35
Over 5 years 96,824,380.35 96,814,624.35
Total 113,930,712.66 222,250,008.92
(2) Disclosure by provision method for bad debts
Unit: RMB
Ending balance Beginning balance
Provision for bad Provision for bad
Book balance Book balance
Type debts Book debts Book
Provision value Provision value
Amount Ratio Amount Amount Ratio Amount
ratio ratio
Accounts
receivabl
e with
provision
for bad 86.33% 100.00% 0.00 44.21% 100.00% 0.00
debts on
an
individual
basis
Including:
Accounts 15,569,0 323,948. 15,245,1 124,003, 11,134,0 112,869,
receivabl 13.67% 2.08% 55.79% 8.98%
e with
provision
for bad
debts on
a
combinati
on basis
Including:
Total 100.00% 86.62% 100.00% 49.22%
Provision for bad debts accrued on an individual basis: RMB 98,361,615.94
Unit: RMB
Beginning balance Ending balance
Name Provision for Provision for Reasons for
Book balance Book balance Provision ratio
bad debts bad debts provision
Shenzhen
Involved in
Jiyong Property
Development
irrecoverable
Co., Ltd.
Shenzhen
Tewei Industrial Long aging and
Co., Ltd. 2,836,561.00 2,836,561.00 2,836,561.00 2,836,561.00 100.00% estimated to be
(Chenhui irrecoverable
Building)
Luohu District
Long aging and
Economic
Development
irrecoverable
Company
Accounts
receivable with
insignificant
single amount Involved in
but subject to 1,544,640.54 1,544,640.54 1,659,346.59 1,659,346.59 100.00% litigation and
provision for irrecoverable
bad debts on
an individual
basis
Total 98,246,909.94 98,246,909.94 98,361,615.94 98,361,615.94
Provision for bad debts accrued on combination: RMB 323,948.60
Unit: RMB
Ending balance
Name
Book balance Provision for bad debts Provision ratio
Credit risk characteristic
combination
Government funding
combination
Total 15,569,096.72 323,948.60
Explanation on the basis for determining the combination:
If the provision for bad debts of accounts receivable is made in accordance with the general model of
expected credit losses:
□ Applicable ? Not applicable
(3) Provision for bad debts accrued, recovered or reversed for the current period
Provision for bad debts for the current period:
Unit: RMB
Changes in the current period
Beginning
Type Recovery or Ending balance
balance Provision Write-off Others
reversal
Provision for
bad debts on
an individual
basis
Provision for
bad debts
made by
portfolio
Total 109,380,927.14 -10,695,362.60 98,685,564.54
Significant amounts of recovered or reversed provision for bad debts for the current period:
Unit: RMB
Basis for determining
Recovered or reversed the ratio of provision
Entity name Reason for reversal Recovery method
amount for bad debts and its
rationality
(4).Actual write-off of accounts receivable for the current period
Unit: RMB
Item Amount of write-off
Including write-off of important accounts receivable:
Unit: RMB
Whether the fund
Write-off
Nature of accounts Reasons for write- is generated by
Entity name Amount of write-off procedures
receivable off related party
performed
transactions
Explanation on write-off of accounts receivable:
(5) Top five accounts receivable by the debtor in terms of the ending balance and contract
assets
Unit: RMB
Ratio to the total Ending balance of
amount of ending provision for bad
Ending balances
Ending balance of balance of debts of accounts
Ending balance of of accounts
Entity name accounts accounts receivable and
contract assets receivable and
receivable receivable and provision for
contract assets
contract assets impairment of
(%) contract assets
Ratio to the total Ending balance of
amount of ending provision for bad
Ending balances
Ending balance of balance of debts of accounts
Ending balance of of accounts
Entity name accounts accounts receivable and
contract assets receivable and
receivable receivable and provision for
contract assets
contract assets impairment of
(%) contract assets
Shenzhen Jiyong
Property
Development Co.,
Ltd.
Shenzhen Futian
District
Government
Property
Management
Center
Shenzhen Tewei
Industrial Co., Ltd. 2,836,561.00 2,836,561.00 2.49% 2,836,561.00
(Chenhui Building)
Shenzhen
Feihuang 769,919.05 769,919.05 0.68% 769,919.05
Industrial Co., Ltd.
Shenzhen Meige
Xiazi Catering
Management Co.,
Ltd.
Total 110,085,951.63 110,085,951.63 96.63% 97,960,174.50
Unit: RMB
Item Ending balance Beginning balance
Other receivables 8,481,001,540.48 4,279,938,165.85
Total 8,481,001,540.48 4,279,938,165.85
(1) Interest receivable
Unit: RMB
Item Ending balance Beginning balance
Unit: RMB
Whether impairment
Borrower Ending balance Overdue time Reason for overdue occurs and the basis
for judgment
Other explanations:
□ Applicable ? Not applicable
Unit: RMB
Changes in the current period
Beginning
Type Recovery or Resale or write- Ending balance
balance Provision Other changes
reversal off
Significant amounts of recovered or reversed provision for bad debts for the current period:
Unit: RMB
Basis for determining
Recovered or reversed the ratio of provision
Entity name Reason for reversal Recovery method
amount for bad debts and its
rationality
Other explanations:
Unit: RMB
Item Amount of write-off
Including write-off of important interest receivable
Unit: RMB
Whether the fund
Write-off
Reasons for write- is generated by
Entity name Nature of payment Amount of write-off procedures
off related party
performed
transactions
Explanation on write-off:
Other explanations:
(2) Dividends receivable
Unit: RMB
Project (or investees) Ending balance Beginning balance
Unit: RMB
Whether impairment
Reason for not
Project (or investees) Ending balance Aging occurs and the basis
withdrawing
for judgment
□ Applicable ? Not applicable
Unit: RMB
Changes in the current period
Beginning
Type Recovery or Resale or write- Ending balance
balance Provision Other changes
reversal off
Significant amounts of recovered or reversed provision for bad debts for the current period:
Unit: RMB
Basis for determining
Recovered or reversed the ratio of provision
Entity name Reason for reversal Recovery method
amount for bad debts and its
rationality
Other explanations:
Unit: RMB
Item Amount of write-off
Write-off of important dividends receivable
Unit: RMB
Whether the fund
Write-off
Reasons for write- is generated by
Entity name Nature of payment Amount of write-off procedures
off related party
performed
transactions
Explanation on write-off:
Other explanations:
(3) Other receivables
Unit: RMB
Nature of payment Ending book balance Beginning book balance
Guaranteed deposit 2,201,327.00 2,225,127.00
Withholding payments 15,861.02 24,068.13
External transactions 134,696,979.69 136,954,520.92
Transactions with subsidiaries 8,370,324,659.28 4,169,668,944.36
Total 8,507,238,826.99 4,308,872,660.41
Unit: RMB
Aging Ending book balance Beginning book balance
Within 1 year (including 1 year) 8,370,804,520.30 4,169,820,435.08
Over 3 years 136,214,749.73 138,955,090.96
Over 5 years 136,181,100.68 138,850,041.91
Total 8,507,238,826.99 4,308,872,660.41
Unit: RMB
Ending balance Beginning balance
Book balance Provision for bad debts Book balance Provision for bad debts
Type
Provision Book value Provision Book value
Amount Ratio Amount Amount Ratio Amount
ratio ratio
Provision
for bad
debts
accrued on 1.50% 13.55% 3.02% 15.38%
an
individual
basis
Including:
Provision
for bad
debts 98.50% 0.11% 96.98% 0.21%
made by
portfolio
Including:
Total 100.00% 0.31% 100.00% 0.67%
Provision for bad debts accrued on an individual basis: RMB 17,247,611.17
Unit: RMB
Beginning balance Ending balance
Name Provision for Provision for Reasons for
Book balance Book balance Provision ratio
bad debts bad debts provision
Shum Yip
Failed to
Properties
Development
long time
Limited
Shanghai Failed to
Yutong Real 5,676,000.00 5,676,000.00 5,676,000.00 5,676,000.00 100.00% recover for a
Estate Co., Ltd. long time
Hong Kong
Hengyue
Failed to
Development
Company
long time
Limited (Wuyao
Company)
Failed to
Dameisha
Tourism Center
long time
Failed to
Elevated Train
Project
long time
Accounts 2,361,847.46 2,361,847.46 2,361,847.46 2,361,847.46 100.00% Failed to
receivable with recover for a
Beginning balance Ending balance
Name Provision for Provision for Reasons for
Book balance Book balance Provision ratio
bad debts bad debts provision
insignificant long time
single amount
but subject to
provision for
bad debts on
an individual
basis
Total 129,990,664.21 19,987,454.18 127,274,122.98 17,247,611.17
Provision for bad debts accrued on combination: RMB 8,989,675.34
Unit: RMB
Ending balance
Name
Book balance Provision for bad debts Provision ratio
Within 1 year (including 1
year)
Over 5 years 8,906,977.70 8,906,977.70 100.00%
Total 9,640,044.73 8,989,675.34
Explanation on the basis for determining the combination:
The provision for bad debts made according to the general model of expected credit losses
Unit: RMB
Phase I Phase II Phase III
Provision for bad Expected credit loss Expected credit loss
Expected credit losses Total
debts throughout the throughout the
over the next 12
duration (without credit duration (with credit
months
impairment) impairment)
Balance as of January
Balance as of January
period
Provision for the
current period
Balance as of
December 31, 2025
Basis for division of each stage and ratio of provision for bad debts
Changes in the book balance of provision for loss with significant changes in the current period
□ Applicable ? Not applicable
Provision for bad debts for the current period:
Unit: RMB
Changes in the current period
Beginning
Type Recovery or Resale or write- Ending balance
balance Provision Others
reversal off
Other
receivables
Total 28,934,494.56 -2,697,208.05 26,237,286.51
Reversal or recovery of significant amount of provision for bad debts in the current period:
Unit: RMB
Basis for determining
Recovered or reversed the ratio of provision
Entity name Reason for reversal Recovery method
amount for bad debts and its
rationality
Unit: RMB
Item Amount of write-off
Important other receivables write-off:
Unit: RMB
Whether the fund
Write-off
Nature of other Reasons for write- is generated by
Entity name Amount of write-off procedures
receivables off related party
performed
transactions
Explanations on write-off of other receivables:
Unit: RMB
Balance of
Ratio to the total
provision for bad
Entity name Nature of amount Ending balance Aging ending balance of
debts as at the
other receivables
end of the period
Shenzhen
Rongyao Real
Internal
Estate 3,548,085,777.28 Within 1 year 41.71%
transactions
Development Co.,
Ltd.
Dongguan Wuhe
Internal
Real Estate Co., 2,113,760,170.00 Within 1 year 24.85%
transactions
Ltd.
Shenzhen ITC
Internal
Technology Park 994,913,534.34 Within 1 year 11.69%
transactions
Service Co., Ltd.
Shenzhen
Guangming Wuhe Internal
Real Estate Co., transactions
Ltd.
Yangzhou Wuhe
Internal
Real Estate Co., 756,192,131.69 Within 1 year 8.89%
transactions
Ltd.
Total 8,260,151,613.31 97.10%
Unit: RMB
Other explanations:
Unit: RMB
Ending balance Beginning balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investment in
subsidiaries
Investments in
associates and 287,986,191.53 18,983,614.14 269,002,577.39 287,171,419.66 18,983,614.14 268,187,805.52
joint ventures
Total 1,644,311,592.63 497,026,174.43 1,147,285,418.20 1,643,496,820.76 84,817,614.14 1,558,679,206.62
(1) Investment in subsidiaries
Unit: RMB
Increase/decrease in this period Balance of
Beginning
Beginning provision for
balance of Ending balance
Investees balance (book Additional Reduced Provision for impairment as at
provision for Others (book value)
value) investment investment impairment the end of the
impairment
period
Shenzhen
Huangcheng
Real Estate Co.,
Ltd.
Shenzhen Wuhe
Industry
Investment and 44,950,000.00 44,950,000.00
Development
Co., Ltd.
SZPRD
Yangzhou Real
Estate 50,000,000.00 50,000,000.00
Development
Co., Ltd.
Dongguan ITC
Changsheng
Real Estate 20,000,000.00 20,000,000.00
Development
Co., Ltd.
Shenzhen
International
Trade Center
Property
Management
Co., Ltd.
Shenzhen
Property
Engineering and
Construction
Supervision Co.,
Ltd.
Shenzhen
Property
Commercial 63,509,120.32 63,509,120.32
Operation Co.,
Ltd.
Shum Yip
Properties
Development
Limited
SZPRD Xuzhou
Dapeng Real
Estate 50,000,000.00 50,000,000.00
Development
Co., Ltd.
Shenzhen
Rongyao Real 508,000,000.00 412,208,560.29 95,791,439.71 412,208,560.29
Estate
Development
Increase/decrease in this period Balance of
Beginning
Beginning provision for
balance of Ending balance
Investees balance (book Additional Reduced Provision for impairment as at
provision for Others (book value)
value) investment investment impairment the end of the
impairment
period
Co., Ltd.
Dongguan
Wuhe Real 50,000,000.00 50,000,000.00
Estate Co., Ltd.
Shenzhen
Guangming
Wuhe Real
Estate Co., Ltd.
Shenzhen Wuhe
Urban Renewal 236,641,757.62 236,641,757.62
Co., Ltd.
Yangzhou Wuhe
Real Estate Co., 33,500,000.00 33,500,000.00
Ltd.
Total 65,834,000.00 412,208,560.29 878,282,840.81 478,042,560.29
Investments in associates and joint ventures
Unit: RMB
Increase/decrease in this period
Balance of
Beginning Investment provision
Beginning profit or Cash Ending
balance of for
balance Adjustment balance
Investees provision loss dividends Provision impairment
(book Additional Reduced of other Changes in (book
for recognized or profits for Others as at the
value) investment investment comprehen other equity value)
impairment under the declared to impairment end of the
sive income
equity be paid period
method
I. Joint ventures
Shenzhen
Property
Jifa 90,014.66
Warehousin
g Co., Ltd.
Shenzhen
Tian'an
Internationa -
l Building 1,049,490.7
Property 8
Manageme
nt Co., Ltd.
Sub-total
II. Associates
Shenzhen
Wufang
Ceramic
Industry
Co., Ltd.
China
Constructio
n
Engineerin
g
Corporation 115,933.90
Group
Smart
Parking
Technology
Co., Ltd.
Sub-total 115,933.90
Total 930,705.77 115,933.90
The recoverable amount is determined at the net amount of the fair value minus the disposal expenses
□ Applicable ? Not applicable
The recoverable amount is determined based on the present value of the estimated future cash flows
□ Applicable ? Not applicable
Reasons for the obvious inconsistency between the above information and the information used in
previous impairment test or external information
Reasons for the difference between the information used in the impairment test of the Company in
previous years and the actual situation of the current year
(3) Other notes
Unit: RMB
Amount in the current period Amount in the previous period
Item
Revenue Cost Revenue Cost
Primary business 54,002,297.50 38,163,396.02 46,400,327.60 47,304,177.17
Other business 18,347,996.27 0.00 17,813,588.70 0.00
Total 72,350,293.77 38,163,396.02 64,213,916.30 47,304,177.17
Breakdown of operating revenue and operating costs:
Unit: RMB
Division 1 Division 2 Total
Contract
classification Operating Operating Operating Operating Operating Operating Operating Operating
revenue costs revenue costs revenue costs revenue costs
Business type
Including:
Real estate
business
Asset
operation
Classification
by business
area
Including:
Shenzhen 72,350,293.77 38,163,396.02 72,350,293.77 38,163,396.02
Market or
customer type
Including:
Contract type
Including:
Classification
by time of
commodity
transfer
Including:
Classification
by contract
period
Including:
Division 1 Division 2 Total
Contract
classification Operating Operating Operating Operating Operating Operating Operating Operating
revenue costs revenue costs revenue costs revenue costs
Classification
by sales
channel
Including:
Total 72,350,293.77 38,163,396.02 72,350,293.77 38,163,396.02
Information related to performance obligations:
Amounts Types of quality
Nature of the
Whether it is assumed by the assurance
Time to fulfill goods the
Important the main Company that provided by the
Item performance Company
payment terms responsible are expected to Company and
obligations undertakes to
person be refunded to related
transfer
customers obligations
Other explanations
Information related to the transaction prices allocated to the remaining performance obligations:
The amount of revenue corresponding to the performance obligations of contracts that have been
signed but not performed or not fully performed yet at the end of the reporting period is RMB
Major contract change or major transaction prices adjustment of parent company
Unit: RMB
Item Accounting treatments Amount of impact on revenue
Other explanations:
Unit: RMB
Item Amount in the current period Amount in the previous period
Income from long-term equity
investments under cost method
Long-term equity investment income
calculated under the equity method
Total 2,893,954,820.65 184,223,509.99
? Applicable Not applicable
Unit: RMB
Item Amount Notes
Profit or loss from disposal of non- Mainly due to the disposal of
current assets investment properties
Government subsidies included in the
current profit or loss (except for those
that are closely related to the
Company's normal business
Mainly due to the one-off government
operations, comply with national 10,813,006.40
subsidies received
policies and regulations, are enjoyed
according to determined standards,
and have a sustained impact on the
Company's profit or loss)
Profit or loss from changes in fair value
of financial assets and liabilities held
by non-financial enterprises and profit
or loss from the disposal of financial Mainly due to the changes in the fair
assets and financial liabilities, except value of money market funds
for effective hedging operations related
to the Company's normal business
operations
Non-operating revenue and expenses
other than the above-mentioned items
Other items of profit or loss subject to
Mainly due to the adjustment for
the definition of non-recurring profit or -80,226.78
additional VAT deductions
loss
Less: income tax effects 16,242,730.99
Affected amount of minority interests
(after tax)
Total 46,271,464.97 --
Specific circumstances of other profit or loss items that meet the definition of non-recurring profit or loss:
□ Applicable ? Not applicable
The Company had no specific profit or loss items that meet the definition of non-recurring profit or loss.
Notes on the definition of the non-recurring profit or loss items listed in the "Interpretive Announcement
No. 1 on Information Disclosure of Companies Issuing Securities to the Public - Non-recurring Profit or
Loss" as recurring profit or loss items
□ Applicable ? Not applicable
Earnings per share
Weighted average rate of
Profit in the reporting period Basic earnings per share Diluted earnings per share
return on net assets
(RMB/share) (RMB/share)
Net profit attributable to
ordinary shareholders of the 1.00% 0.0569 0.0569
COOEC
Net profits attributable to
ordinary shareholders of the
-0.37% -0.0208 -0.0208
COOEC after deducting non-
recurring profit or loss
(1) Differences in net profits and net assets between the financial reports disclosed in
accordance with the International Financial Reporting Standards (IFRS) and the PRC Generally
Accepted Accounting Principles (GAAP)
□ Applicable ? Not applicable
(2) Differences in net profits and net assets between the financial reports disclosed in
accordance with the overseas financial reporting standards and the PRC GAAP
□ Applicable ? Not applicable
(3) Explanations of the reasons for differences between accounting data under domestic and
foreign accounting standards. If adjustments have been made to the differences in data audited
by an overseas auditing firm, the name of the said overseas institution shall be specified.
Not applicable
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