Shenzhen Special Economic Zone Real Estate &
Properties (Group) Co., Ltd.
Announcement No.: 2026-010
[March 20, 2026]
Section I Important Notes, Table of Contents and
Interpretations
The Board of Directors, the directors, and the executives of the Company
guarantee that there are no significant omissions, fictitious or misleading
statements carried in the Report and we will accept individual and joint
responsibilities for the truthfulness, accuracy and completeness of the Report.
Principal CHEN Ming, Chief Finance Officer WANG Jianfei and Chief Accountant
(accounting officer) ZHOU Hongpu declare that they guarantee the authenticity,
accuracy and completeness of the financial report in the Annual Report.
All directors attended the board meeting at which this report was considered.
Certain descriptions about the Company’s operating plans or work arrangements
for the future mentioned in this Report, the implementation of which is subject to
various factors, shall not be considered as promises to investors. Therefore,
investors are reminded to exercise caution when making investment decisions.
The Board has approved a final dividend plan as follows: based on the total share
capital of 1,011,660,000 shares, a cash dividend of RMB0.35 (tax inclusive) per 10
shares is to be distributed to the shareholders, with no bonus issue from either
profit or capital reserves.
Table of Contents
List of Reference Documents
legal representative, Chief Financial Officer and head of the financial department.
personal signatures and stamps of the CPAs.
the designated information disclosure media during the Reporting Period.
Interpretations
Item of interpretations Refers to Interpretations
“Shenzhen SASAC” or the State-owned Assets Supervision and Administration Commission
Refers to
“Municipal SASAC” of Shenzhen Municipal People's Government
SIHC Refers to Shenzhen Investment Holdings Co., Ltd.
The Company, the Group, SPG or Shenzhen Special Economic Zone Real Estate & Properties
Refers to
"we" (Group) Co., Ltd.
Shenzhen Property Management Refers to Shenzhen Property Management Co., Ltd.
Petrel Hotel Refers to Shenzhen Petrel Hotel Co., Ltd.
Zhentong Engineering Refers to Shenzhen Zhentong Engineering Co., Ltd.
Huazhan Construction Supervision Refers to Shenzhen Huazhan Construction Supervision Co., Ltd
Jianbang Group Refers to Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd.
Chuanqi Real Estate Development Refers to Shenzhen Shenfang Chuanqi Real Estate Development Co., Ltd.
Guangmingli Refers to SPG Guangmingli Project
Linxinyuan Refers to SPG Linxinyuan Project
Cuilinyuan Refers to SPG Cuilinyuan Project
Section II Company Profile and Major Financial
Indicators
I. Information about the Company
Stock name SPG, SPG-B Stock code 000029（200029）
Stock exchange where the
Shenzhen Stock Exchange
Company's stocks are listed
Chinese name Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
Abbreviation in Chinese 深房集团
Foreign name of the Company (if
ShenZhenSpecial Economic Zone Real Estate&Properties (Group)co.，Ltd.
any)
Abbreviation of the Company's
SPG
foreign name (if any)
Legal representative Chen Ming
Floors A46-A48 and B46-B48, SPG Plaza, No. 3005, Renmin South Road, Jiabei
Registered address
Community, Nanhu Street, Luohu District, Shenzhen
Postal code of registered
address
Historical changes of the
None
Company's registered address
Office address Floors 46-48, SPG Plaza, No. 3005, Renmin South Road, Shenzhen
Postal code of business address 518001
Company's website http://www.sfjt.com.cn
E-mail spg@sfjt.sihc.com.cn
II. Contact person and contact information
Secretary of the Board of Directors Securities affairs representative
Name Luo Yi Hong Lu
Contact address Luohu District, Shenzhen, Luohu District, Shenzhen,
Guangdong, P.R.China Guangdong, P.R.China
Tel. （86 755）25108897 （86 755）25108837
Fax （86 755）82294024 （86 755）82294024
E-mail spg@sfjt.sihc.com.cn spg@sfjt.sihc.com.cn
III. Information disclosure and storage location
Stock exchange websites where companies disclose
Shenzhen Stock Exchange (http://www.szse.cn/)
annual reports
Name and website of the media where the Company Securities Times, Shanghai Securities News, and CNINFO
discloses its annual report (http://www.cninfo.com.cn)
Storage location of annual reports
District, Shenzhen, Guangdong, P.R.China
IV. Registration changes
Unified social credit code 91440300192179585N
Changes in primary business since the listing of the
None.
Company (if any)
On 24 March 1999, the controlling shareholder was
changed from Shenzhen Investment Management Co.,
Previous changes of controlling shareholder (if any) Ltd. to Shenzhen Construction Investment Holdings Co.,
Ltd. On 14 February 2006, it was changed to Shenzhen
Investment Holdings Co., Ltd.
V. Other relevant information
Accounting firm engaged by the Company
Pan-China Certified Public Accountants (Special General
Name
Partnership)
Office address
Zhejiang Province, China
Signing accountants Wang Huansen, Lin Zhenhua
Sponsor engaged by the Company to perform continuous supervision during the reporting period
□ Applicable√ Not applicable
Financial consultant engaged by the Company to perform continuous supervision during the reporting
period
□ Applicable√ Not applicable
VI. Main accounting data and financial indicators
Whether the Company needs to retroactively adjust or restate the accounting data of previous years
□ Yes √ No
Increase/decrease this
last year
Operating revenue (RMB) 1,482,872,299.36 407,022,191.44 264.32% 530,887,720.68
Net profit attributable to
the shareholders of the 99,956,003.75 -176,710,947.65 156.56% -250,839,542.09
listed company (RMB)
Net profit attributable to
shareholders of listed
companies after 234,352,924.49 -197,979,921.69 218.37% -267,984,286.36
deducting non-recurring
profit or loss (RMB)
Net cash flows from
-95,319,433.93 -127,403,949.79 25.18% 1,045,037,248.19
operating activities (RMB)
Basic earnings per share
(RMB/share)
Diluted earnings per
share (RMB/share)
Weighted average rate of
return on net assets
Increase/decrease at
the end of this year As at the end of
As at the end of 2025 As at the end of 2024
compared with the end 2023
of last year
Total assets (RMB) 3,882,782,985.57 5,987,780,656.67 -35.15% 6,485,312,507.46
Net assets attributable to
shareholders of the listed 3,612,323,196.38 3,512,112,493.42 2.85% 3,691,082,484.20
company (RMB)
The net profit of the Company in the last three fiscal years before and after deducting non-recurring
profit or loss is negative, and the audit report of the latest year shows that the going-concern ability of
the Company is uncertain
□ Yes √ No
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
VII.Differences between accounting data under domestic and foreign
accounting standards
accordance with the international accounting standards and the Chinese
accounting standards
□ Applicable√ Not applicable
During the reporting period of the Company, there was no difference in net profits and net assets in
financial reports disclosed in accordance with international accounting standards and Chinese
accounting standards
accordance with both the international accounting standards and Chinese
accounting standards
□ Applicable√ Not applicable
During the reporting period of the Company, there was no difference in net profits and net assets in
financial reports disclosed in accordance with the international accounting standards and Chinese
accounting standards
VIII. Main financial indicators by quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 330,053,200.67 307,313,020.68 261,486,861.10 584,019,216.91
Net profit attributable
to shareholders of the 72,421,123.75 30,606,522.67 42,090,029.10 -45,161,671.77
listed company
Net profit attributable
to shareholders of
listed companies after 68,102,809.31 26,249,678.66 37,588,629.07 102,411,807.45
deducting non-
recurring profit or loss
Net cash flows from
-18,784,578.27 -68,637,663.31 -4,582,204.79 -3,314,987.56
operating activities
Whether the above financial indicators or their aggregate are significantly different from the financial
indicators related to the Company's disclosed quarterly and semi-annual reports
□ Yes √ No
IX. Non-recurring profit or loss items and amounts
√Applicable □Not applicable
Unit: RMB
Item Amount in 2025 Amount in 2024 Amount in 2023 Notes
Profit or loss on disposal of non-current assets
(including write-off of provision for asset -151,762,085.94 740,874.42 9,940,254.23
impairment)
Government subsidies included in the current
profit or loss (except for those that are closely
related to the Company's normal business
operations, comply with national policies and 753,298.54 440,049.96
regulations, are enjoyed according to
determined standards, and have a sustained
impact on the Company's profit or loss)
Gain/Loss on entrusting others with
investments or asset management
Reversal of provision for impairment of
accounts receivable subject to separate 3,994,030.79
impairment test
Non-operating revenue and expenses other
than the above-mentioned items
Less: income tax effects 210,384.02 863,081.95 5,639,314.23
Affected amount of minority interests (after tax) -13,705.11 -5,628.01 -30,421.58
Total -134,396,920.74 21,268,974.04 17,144,744.27 --
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
Amount involved
Item Reasons
(RMB)
Refund of service fee for withholding Continuously occurring from year to year, not
individual income tax occasional, recognized as recurring gains and losses
Section III Management's Discussion and Analysis
I. Main business engaged in by the Company during the reporting period
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 Company focuses on the development of residential properties. Its projects for sale
are mainly located in Shenzhen and Shantou, including SF Cui Lin Yuan in Shenzhen
and Tianyue Bay in Shantou. The Company is specialised in residential real estate
development, with on-sale projects mainly distributed in Shenzhen and Shantou. These
include Cuilinyuan in Shenzhen and Tianyuewan in Shantou.
New land reserve projects
Capacity Equity
Total land
Land parcel Land Land area building Land considerati
price
or project Location planning (m
2< area Acquisition Equity ratio on
(RMB10,00
name purpose /sup>) (m2< Method (RMB10,00
/sup>) 0)
Cumulative Land Reserve
Remaining developable floor
Total floor area (10,000 Total construction area
Project/Area name area (10,000
m2) (10,000 m2)
m2)
Shantou Xinfeng Building 0.59 2.66 2.66
Total 0.59 2.66 2.66
Development of main projects
Total
Complete Estimate
Planned Cumulati accumula
d area of d total
Land capacity ve ted
Comme Developm Schedule the investme
City/Regi Project Equity area building complete investme
Project Location nceme ent of current nt
on format ratio (m area d area nt
nt time progress completion period amount
(m (RMB10,
Sales of main projects
Amount of
Cumulativ The Cumulativ Settlement Settlement
pre-sale
Salable e pre-sale current e area in the amount in
Capacity (sale) in
City/Regio Project Equity area (sales) period settlement current the current
Project Location building the current
n format ratio (m2 area pre-sale area period period
area period
) (m2 (sales) (m2 (m2 (RMB10,0
(RMB10,0
) area (m2) ) ) 00)
Longgang Ready for
Shenzhen Cuilinyuan 100.00% 60111 56137 54393.38 0 0 54393.38 0 0
District sale
Tianyuewa Chaoyang Ready for
Shantou 100.00% 153470 160372 122486.86 1806.32 1,012.4 121646.61 2232.21 823.41
n Phase I District sale
Tianyuewa Chaoyang Ready for
Shantou 100.00% 127770 137059 50858.58 8854.16 5,159.3 48537.71 6802.53 3,371.83
n Phase II District sale
Guangmin Guangmin Ready for
Shenzhen 100.00% 53605 51975 36041.35 383.86 1,256 35742.02 31138.84 127,733.7
gli g area sale
Leasing of main projects
Accumulated
Rentable area Average
Project Location Project format Equity ratio leased area
(m2) occupancy rate
(m2)
Real Estate
Shenzhen Commercial 100.00% 3413.88 3413.88 100.00%
Mansion
North Tower of
Guoshang Shenzhen Commercial 100.00% 4819.71 4819.71 100.00%
Mansion
Petrel Building Shenzhen Commercial 100.00% 22475.47 22475.47 100.00%
SPG Plaza Shenzhen Office building 100.00% 58382.15 26811.48 45.92%
Podium of SPG
Shenzhen Commercial 100.00% 20377.02 18469.49 90.64%
Plaza
Wenjin Garden Shenzhen Commercial 100.00% 3531.6 3531.6 100.00%
Level-I land development
□ Applicable√ Not applicable
Financing approach
Financing Term structure
Financing cost
balance at the
Financing range/average
end of the
approach financing cost Within 1 year 1-2 years 2-3 years Over 3 years
period
(RMB10,000)
(RMB10,000)
Others 737.991 1.2%-2.4% 737.99
Total 737.99 737.99
Note: 1. Others are borrowings from accounts receivable factoring.
Development strategy and business plan for the next year
Please refer to “Prospects” in this part of the Report.
Guarantee to buyers of commercial housing for bank mortgage
√Applicable □Not applicable
Guaranteed
Guaranteed Financial institutions for
borrowing amount Maturity date of guarantee Remark
unit loans
(RMB10,000)
Until the property ownership certificate
Homebuyers China Construction Bank 38.85 is registered as collateral and handed Shanglinyuan
over to bank for keeping
Until the property ownership certificate
China Construction Bank,
Homebuyers 151.43 is registered as collateral and handed Cuilinyuan
Agricultural Bank of China
over to bank for keeping
Until the property ownership certificate Chuanqi
Homebuyers China Construction Bank 631.55 is registered as collateral and handed Donghu
over to bank for keeping Mingyuan
Industrial and Commercial
Until the property ownership certificate
Bank of China, Bank of
Homebuyers 1,787.98 is registered as collateral and handed Tianyuewan
China, Postal Savings
over to bank for keeping
Bank
Industrial and Commercial
Bank ofChina, Huaxia
Bank, Rural Commercial
Until the property ownership certificate
Bank, Agricultural Bank of
Homebuyers 15,557.88 is registered as collateral and handed Guangmingli
China, Postal Savings
over to bank for keeping
Bank of China, China
Merchants Bank, Bank of
China
Sub-total 18,167.69
Joint investments by directors and senior management and the listed company (applicable for such
investments where the directors and senior management are the major source of investment):
√Applicable □Not applicable
Matching of
actual
Accumul
Type of Investment Proportion of investment
Peak ratio of ated
Project investment amount investment Exit status amount and
project funds income
entity (RMB) amount amount of
(RMB)
income
distribution
Directors, The co-
investment in this
supervisors,
project was
and
Linxinyuan terminated in Not
senior 0.00 0.00% 0.00% 0.00
Project June 2025, and applicable
management the co-investment
of the funds were fully
Company returned.
II. Industry Overview for the Reporting Period
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
Facing the profound and complex changes in both domestic and international situations
in 2025, the CPC Central Committee with Comrade Xi Jinping at its core has steered the
course and taken charge of the overall situation. It has coordinated both domestic and
international imperatives, balanced the development and security, adhered to the general
principle of seeking progress while maintaining stability, implemented more proactive and
effective macroeconomic policies, deepened the development of a unified national
market, and propelled China's economy forward against headwinds toward new and
higher-quality development. In the industry, it is explicitly proposed in the
recommendations of the 15th Five-Year Plan to construct "good houses" that are safe,
comfortable, green and smart. It is further clarified on the Central Economic Work
Conference held in December 2025 to orderly promote the construction of "good
houses," marking a shift in the industry's development logic from "having a place to live"
to "living well."
III. Analysis of core competitiveness
As the earliest real estate developer founded in the Shenzhen Special Economic Zone,
the Company helped build the early city, and has created a number of "first places" in the
history of real estate development in China. For example, the first to use the paid state-
owned land, the first to introduce the foreign investment for the cooperative land
development, the first to raise development funds by means of pre-sale of buildings, the
first to carry out public bidding for construction projects in accordance with international
practices, the first to set up a property management company to the buildings and
residences developed in an all-rounded manner, as well as winning the bid in the new
China’s first auction of land use rights held in the Shenzhen Special Economic Zone.
After more than 40 years of development, the Company has grown into a business group
with real estate development and operation as its main business, integrating engineering
and construction, project supervision, asset management and other diversified operations.
In the future, the Company will actively cultivate and promote a corporate culture of
compliance, integrity and excellence. It will remain committed to giving back to society
with high-quality products and building its reputation through quality, striving to become a
respected and trustworthy listed company.
During the reporting period, the Company received several awards, including the "Top 20
Greater Bay Area Listed Companies for Green Governance 2025," the "2025 Listed
Company ESG Value Communication Award," and the "Top 20 A-share Listed
Companies for ESG Performance in Real Estate Industry 2025." The SPG Plaza project
was awarded the "2024 Outstanding Leasing Project Award".
IV. Analysis of primary business
The year 2025 is the final year of the 14th Five-Year Plan and a crucial year for the
Company to overcome challenges and forge ahead. Facing a complex and challenging
internal and external environment, the Company has focused on its core tasks,
intensified its efforts, and taken concrete actions, to promote a steady and improving
trend in its development with enhanced quality. Looking back on the year, the Company
has focused on and made solid progress in the following key areas:
(I) Achieving good performance in the core business with targeted and joint efforts.
i. Making every effort for marketing The Guangmingli project has achieved 100%
clearance of the housing resource approved by the government for sale, and the
handover process has been successfully completed. The total sales area of Shantou
Tianyuewan Project increased by 56% year-on-year, with sales revenue growing by 63%
year-on-year. ii. Focusing on improving the quality and efficiency of our property
operations. As of the end of 2025, the consolidated average occupancy rate of the
Group's self-owned properties reached 90.9%. The renovation of the rooftop helipad at
SPG Plaza was successfully completed, and thus SPG Plaza was granted as the "Low-
Altitude Economy Industrial Building" by the Government of Luohu District. iii. Fully
tapping the operational potential of our subsidiaries. Petrel Hotel surpassed its annual
performance targets for both operating revenue and total profit. Zhentong Engineering
made substantial breakthroughs in market expansion within the system. The Shantou
Branch achieved a 100% rent collection rate for Zhongshan East Market. Huazhan
Construction Supervision undertook three external supervision projects. Chuanqi Real
Estate Development completed the setup of its organizational structure and business
processes, officially transitioning to specialized commercial operation and management.
(II) Achieving positive results in risk prevention and resolution by securing the
baseline and concentrating on tackling tough issues. First, we prudently mitigated
the project risks. We won favorable judgments in cases such as the RMB 344 million loan
contract dispute involving Jianbang Company. The declaration of creditor claims for the
bankruptcy liquidation of Jianbang Company is progressed smoothly. Second, we
effectively prevented and controlled the safety risks. We thoroughly advanced the "Three-
Year Action Plan for Addressing the Root Causes of Workplace Safety Issues," with 91
safety inspections conducted, 373 safety hazards identified, and a 100% rectification rate
achieved throughout the year. Third, we properly handled the stability-related risks. We
formulated special work plans to properly handle the matters such as the handover of the
SPG Guangmingli Project, outstanding payments to suppliers of SPG Lixinyuan Project,
and employee co-investment, ensuring no major petitioning or public opinion incidents
occurred throughout the year.
(III) Strengthening foundations and focusing control to achieve significant
improvements in capabilities. First, our governance system was further improved. We
optimized the organizational structure and the list of powers and responsibilities of the
headquarters to further clarify the management authorities and responsibilities. We
continued to optimize and adjust our system of rules and regulations, revising or
establishing 102 policies throughout the year. Second, our management support became
more robust. We organized the special training programs, such as "Training for
Management and Reserve Talents" and "Intelligent AI Applications"; we deepened the
development of database on "Good House" information and house types, and compiled
the "Leasing Operation Manual" to enhance the employees' professional performance
capabilities. We strengthened the centralized fund management to ensure the
standardized and efficient use of funds. Third, the efficiency of our corporate
management became more prominent. The disposal work of inefficient/ineffective assets
and non-core/non-dominant businesses was advanced continuously, with progress made
in the divestment of Shenzhen Zhentong New Electromechanical Industrial Development
Co., Ltd. and Xinfeng Real Estate Development and Construction (Wuhan) Co., Ltd.
(IV) Raising awareness and focusing on planning to promote continuous
exploration and promotion of future development. First, we strengthened the
strategic coordination and organizational support. We established a dedicated task force
to scientifically define the task divisions and clearly assign the primary responsibilities.
Second, we deepened the research on future development paths and project reserves.
We closely tracked the latest regulatory rules and capital market trends, deepened the
policy interpretation and forward-looking analysis, and strengthened the communication
with controlling shareholders and professional institutions to build a regular collaborative
mechanism and expand the high-quality project resources.
(V) The guiding and orienting role is more prominent with party building as
guidance and integrated efforts. First, we strengthened the political building to
earnestly fulfill our responsibilities and mission. We made solid progress in thoroughly
implementing the central Party leadership's eight-point decision on improving work
conduct, organizing 132 times of special subject learning throughout the year. Second,
we deepened the integration of Party building and business operations, focusing on
mutual promotion to enhance efficiency. We dynamically optimized the list of "three major
and one large" decision-making matters. The Group's Party Committee reviewed 227
major business and management matters throughout the year, effectively leveraging the
political and organizational functions of the Party organization. Third, we strictly governed
the Party, resolutely enforced the discipline and promoted a new trend of conduct. We
consolidated the primary and supervisory responsibilities for exercising full and strict
governance over the Party, and signed the responsibility letters for Party conduct and
clean governance at all levels. We innovatively promoted the integrated mechanism of
ensuring that officials "dare not, cannot, and do not want to be corrupt," with 26 reminder
talks conducted. We created the culture brand of "Clean and Virtuous SPG", launching
the original cultural works such as themed micro-videos and sitcoms, leading to a
continuous improvement in the political ecosystem.
(1) Composition of operating revenue
Unit: RMB
Percentage of Percentage of YoY change
Amount Amount
operating revenue operating revenue
Total operating
revenue
By industry
Real estate 1,324,656,290.59 89.33% 162,523,053.49 39.93% 715.06%
Engineering
construction
Property
management
Rental and others 73,627,492.30 4.97% 80,526,412.15 19.78% -8.57%
By product
Residence 1,323,692,839.30 89.27% 142,671,853.48 35.05% 827.79%
Shops and
parking lots
Others 158,216,008.77 10.67% 244,499,137.95 60.07% -35.29%
By region
Guangdong
Province
Overseas 697,969.09 0.05% 695,682.90 0.17% 0.33%
Subsales model
Main business 1,475,508,650.42 99.50% 399,806,208.89 98.23% 269.06%
Others 7,363,648.94 0.50% 7,215,982.55 1.77% 2.05%
(2) Industry, product, region and sales model accounting for more than 10% of the company's
operating revenue or operating profit
√Applicable □Not applicable
Unit: RMB
YoY change in
Operating YoY change in YoY change in
Operating costs Gross margin operating
revenue operating costs gross margin
revenue
By industry
Real estate 937,154,626.27 29.25% 715.06% 637.42% 34.17%
Engineering
construction
Rental and
others
By product
Residence 936,338,669.36 29.26% 827.79% 696.65% 66.06%
By region
Guangdong 1,482,174,330. 1,067,340,240.
Province 27 59
Subsales model
Under the circumstances that the calculation method of the Company's main business data is adjusted
during the reporting period, the Company's main business data for the latest period is adjusted
according to the calculation method at the end of the reporting period
□ Applicable√ Not applicable
(3) Whether the company's physical sales revenue is greater than the revenue of labor services
√ Yes □ No
Industry
Item Unit 2025 Year 2024 YoY change
classification
Sales volume RMB'0,000 7,649.70 22,139.68 -65.45%
Real estate
Production volume RMB'0,000 647.34 22,206.96 -97.08%
development
Inventory RMB'0,000 115,387.58 440,320.07 -73.79%
Reasons for the YoY change of more than 30% in relevant data
√Applicable □Not applicable
In 2025, the Company's real estate sales volume and production volume both decreased compared to
the previous year. The inventory decreased year-on-year, mainly due to the sales carry-over completed
for SPG Guangmingli Project in 2025 and the exclusion of Guangdong Jianbang Group (Huiyang)
Industrial Co., Ltd. that was taken over by a bankruptcy administrator for bankruptcy and liquidation on
November 30, 2025.
(4) Performance of major sales contracts and major procurement contracts signed by the
Company as of the reporting period
□ Applicable√ Not applicable
(5) Composition of operating costs
Industry classification
Industry classification
Unit: RMB
Industry
Item Proportion in Proportion in YoY change
classification Amount Amount
operating costs operating costs
Real estate 937,154,626.27 87.60% 127,086,267.87 38.24% 637.42%
Engineering
construction
Property
management
Rental and
others
Notes
The completion of sales carry-over for SPG Guangmingli Project in 2025 led to a year-on-year increase
in the cost of real estate sales; affected by the market environment, the construction workload
decreased year-on-year.
(6) Whether there was any change in the consolidation scope during the reporting period
√ Yes □ No
For details on changes in the scope of consolidation during the reporting period, please see "Section
VIII Financial Statements"。
(7) Information about significant changes or adjustments in the Company's business, products
or services during the reporting period
□ Applicable√ Not applicable
(8) Main sales customers and suppliers
Main sales customers of the Company
Total sales amount of top five customers (RMB) 48,459,602.74
Ratio of top 5 customers' sales to total annual sales 3.27%
Ratio of related-party sales among top 5 customers to total
annual sales
Information on the Company's top 5 customers
Ratio in total annual sales
No. Customer name Sales amount (RMB)
amount
Total -- 48,459,602.74 3.27%
Other information of main customers
□ Applicable√ Not applicable
Main suppliers of the Company
Total purchase amount of top five suppliers (RMB) 37,511,053.77
Ratio of total purchase amount of the top five suppliers in
the total annual purchase amount
Ratio of related-party purchases among top 5 suppliers to
total annual purchases
Information on the Company's top 5 suppliers
Ratio in the annual purchase
No. Supplier name Purchase amount (RMB)
amount
Total -- 37,511,053.77 23.55%
Other information of main suppliers
□ Applicable√ Not applicable
During the reporting period, the Company's trading business revenue accounted for more than 10% of
its operating revenue
□ Applicable√ Not applicable
Unit: RMB
Selling and
Mainly due to an increase in referral
distribution 20,775,223.41 13,164,672.93 57.81%
agency fees and commissions.
expenses
G&A expenses 72,505,249.03 70,118,532.01 3.40%
Mainly due to a decrease in the
Financial average balance of bank deposits and
-1,220,135.02 -5,502,747.12 77.83%
expenses a decrease in deposit interest income
compared to the same period last year.
R&D expenses 0.00 0.00
□ Applicable√ Not applicable
Unit: RMB
Item 2025 Year 2024 YoY change
Sub-total of cash inflows from
operating activities
Sub-total of cash outflows from
operating activities
Net cash flows from operating
-95,319,433.93 -127,403,949.79 25.18%
activities
Sub-total of cash inflows from
investing activities
Sub-total of cash outflows from
investing activities
Net cash flows from the
-46,719,090.83 -89,680,922.03 47.91%
investing activities
Sub-total of cash inflows from
financing activities
Sub-total of cash outflows from
financing activities
Net cash flows from financing
-99,872,535.86 -121,250,684.41 17.63%
activities
Net increase in cash and cash
-242,018,333.57 -338,236,158.91 28.45%
equivalents
Description of main influencing factors of significant YoY changes in relevant data
√Applicable □Not applicable
Cash inflow from operating activities decreased year on year mainly due to the decrease in real estate
sales volume and engineering construction volume. Cash used in operating activities decreased year on
year primarily driven by the decreased development and construction of real estate projects. Net cash
flow from investing activities increased year-on-year mainly driven by decreased purchase of financial
products. Cash inflow from financing activities decreased year-on-year mainly driven by decreased new
bank borrowing raised this period. Cash outflow from financing activities increased year-on-year mainly
driven by repaying bank borrowings in this period
Explanation of the reasons for the significant difference between the net cash flow generated from the
operating activities of the Company and the net profit of the current year during the reporting period
√Applicable □Not applicable
There is a big difference between the net operating cash flow and the net profit for the year, primarily
due to the long time span between property development, sales and revenue recognition.
V. Analysis of non-primary business
□ Applicable√ Not applicable
VI. Analysis of assets and liabilities
Unit: RMB
As at the end of 2025 Early 2025 Increase/decre Explanation of
Ratio of total Ratio of total ase in significant
Amount Amount percentage changes
assets assets
Mainly due to
the purchase of
money market
funds,
Monetary funds 284,686,525.04 7.33% 529,242,725.36 8.84% -1.51% repayment of
bank loans,
and payment of
taxes during
the year.
Accounts
receivable
Contract assets 29,035,256.28 0.75% 30,888,723.09 0.52% 0.23%
Mainly driven
Inventories 28.31% 60.74% -32.43%
estate revenue.
Investment
properties
Long-term
equity 0.00 0.00% 0.00 0.00% 0.00%
investments
Fixed assets 14,949,900.45 0.39% 17,489,207.57 0.29% 0.10%
Construction in
progress
Right-of-use
assets
Short-term
borrowings
Mainly driven
by the revenue
from the
Contract 1,298,146,232.
liabilities 35
advanced sales
proceeds from
property sales.
Mainly driven
by repaying
Long-term
borrowings
borrowings in
this period.
Lease liabilities 0.00 0.00% 0.00 0.00% 0.00%
Mainly driven
Financial by the
assets held for 27.05% 987,801,938.51 16.50% 10.55% purchase of
trading money market
funds.
Mainly driven
by the
deconsolidation
of the holding
Accounts subsidiary due
payable
and liquidation,
of which the
accounts
payable were
no longer
included in the
scope of
consolidation.
Taxes payable 26,922,082.58 0.69% 27,554,810.01 0.46% 0.23%
Mainly driven
by the
deconsolidation
of the holding
subsidiary due
to bankruptcy
and liquidation,
Other payables 144,280,409.16 3.72% 561,016,653.17 9.37% -5.65%
of which the
other related
payables were
no longer
included in the
scope of
consolidation.
Mainly driven
by the
deconsolidation
of the holding
subsidiary due
to bankruptcy
Other and liquidation,
receivables of which the
transactions
with related
parties at the
consolidation
level were no
longer offset
High proportion of overseas assets
□ Applicable√ Not applicable
√Applicable □Not applicable
Unit: RMB
Profit or
Cumulative Amount
loss from Impairment Amount
changes in purchased
Beginning changes in provision in sold in the Other Ending
Item fair value in the
balance fair value in the current current changes balance
included in current
the current period period
equity period
period
Financial assets
assets held
for trading
(excluding
derivative
financial
assets)
equity
instrument
investment
s
Total of the 1,002,499,2 16,495,502. 1,160,000,0 1,114,167,2 1,064,827,5
above 79.69 85 00.00 12.32 70.22
Financial
liabilities
Other changes
Whether there were significant changes in the measurement attributes of the Company's major assets
during the reporting period
□ Yes √ No
(1) Restricted assets at the end of the period
Unit: RMB
Ending book Restricted
Item Closing book value Reason for restriction
balance type
Project of public facilities
inside and surrounding the
urban renewal project of
Monetary funds 5,674,439.78 5,674,439.78 Detain
Longgang District,
Shenzhen-construction
funds
Monetary funds 50,154.19 50,154.19 Detain Construction deposit
Stop payments, suspend
Monetary funds 70,010.20 70,010.20 Detain
accounts
Accounts Put in pledge for short-
receivable term borrowings
Total 13,174,494.32 12,953,097.62
(2) Restricted assets at the beginning of the period
Unit: RMB
Beginning book Restricted
Item Opening book value Reason for restriction
balance type
Project of public
facilities inside and
surrounding the urban
renewal project of
Monetary funds 5,817,217.78 5,817,217.78 Detain Longgang District,
Shenzhen-construction
funds; land reclamation
costs of Guangmingli
Project
Monetary funds 2,306,548.48 2,306,548.48 Frozen Legitigation freeze
Monetary funds 50,155.58 50,155.58 Detain Construction deposit
Stop payments,
Monetary funds 158,549.08 158,549.08 Detain
suspend accounts
Accounts Put in pledge for short-
receivable term borrowings
Litigation Supplier litigation
Inventories 234,599,800.76 161,509,611.70
preservation preservation
Investment
properties
Total 385,179,577.81 213,117,814.51
VII. Analysis of investment status
√Applicable □Not applicable
Amount of the same period of last year
Amount of Reporting Period (RMB) Change (%)
(RMB)
□ Applicable√ Not applicable
□ Applicable√ Not applicable
(1) Securities investment
□ Applicable√ Not applicable
The Company had no securities investment during the reporting period.
(2) Derivative investment
□ Applicable√ Not applicable
The Company had no derivative investment during the reporting period.
VIII. Sales of major assets and equities
□ Applicable√ Not applicable
The Company did not sell major assets during the reporting period.
□ Applicable√ Not applicable
IX. Analysis of major holding and participating companies
√Applicable □Not applicable
Major subsidiaries and participating companies with an impact of 10% or more on the Company's net
profit
Unit: RMB
Registered Operating
Company name Company type Main business Total assets Net assets Operating profit Net profit
capital revenue
Shenzhen
Shenfang
Chuanqi Real Real estate 1,664,867,774.6 1,254,991,892.4 1,277,337,034.8
Subsidiaries 30000000 342,666,494.02 257,063,506.72
Estate development 7 4 4
Development
Co., Ltd.
Shenzhen
Properties
Group Real estate
Subsidiaries 30000000 94,092,259.97 64,330,329.67 2,134,413.54 -125,690.81 608,978.96
Longgang development
Development
Co., Ltd.
Shantou Hualin
Real Estate Real estate
Subsidiaries 91226120.44 104,618,357.01 52,388,495.44 382,221.71 -512,394.53 12,319,773.20
Development development
Co., Ltd.
Shantou
Huafeng Real
Real estate
Estate Subsidiaries 80000000 703,978,834.31 -52,825,483.96 42,409,792.23 -5,266,936.92 -5,266,934.95
development
Development
Co., Ltd.
Great Wall Real
EstateCo., Ltd. Real estate
Subsidiaries 2051146 19,946,289.06 -91,799,069.07 697,969.09 -328,980.98 -328,980.98
in the development
UnitedStates
Shenzhen
Zhentong Installation and
Subsidiaries 10000000 94,758,959.89 2,871,707.88 89,329,264.64 -10,376,700.29 -10,376,700.29
Engineering maintenance
Co., Ltd.
Shenzhen Property leasing
Petrel Hotel Co., Subsidiaries and 30000000 56,581,578.88 42,248,291.56 19,556,350.49 1,369,528.56 862,910.96
Ltd. management
Shenzhen
Huazhan
Construction Subsidiaries Supervision 8000000 11,051,237.33 10,684,333.61 2,483,707.18 49,445.95 46,861.94
Supervision Co.,
Ltd
Xinfeng
Investment,
Enterprise Co., Subsidiaries 502335 332,353,762.54 -233,575,962.99 0.00 -1,845,359.26 -1,845,359.26
management
Ltd.
Information on acquisition and disposal of subsidiaries during the reporting period
√Applicable □Not applicable
Methods of acquisition and disposal of
Impact on overall production,
Company name subsidiaries during the reporting
operation and performance
period
Guangdong Jianbang Group Transferred to the liquidation team for Entry to bankruptcy liquidation
(Huiyang) Industrial Co., Ltd. management procedures
Notes to main holding and participating companies
project company Shenzhen SPG Chuanqi Real Estate Development Co., Ltd. to be responsible for the
development and construction of the land. In November 2024, the Company completed the acceptance
of the construction project. In 2025, the carryover revenue reached RMB 1,277.337 million, accounting
for 96.43% revenue from the Group’s real estate sector and 86.14% of the Group’s operating income.
LonggangDevelopment Co., Ltd., Shantou SEZ Wellam FTY Building Development, Co., Ltd., Shantou
Huafeng RealEstate Development Co., Ltd. The Cuilinyuan project developed by Shenzhen SPG
Longgang Development Co., Ltd., and Jinyedao and Yuejing Dongfang developed by Shantou SEZ
Wellam FTY Building Development, Co., Ltd. left a few amount of remaining buildings for sale. Shantou
Huafeng Real Estate Development Co., Ltd. was responsible for the development of Tianyuewan project
(divided into Phase I and Phase II). Tianyuewan Phase I was open for sale in October 2016 and
completed in December 2019. The Phase II started construction in November 2018 and was completed
at the end of June2021. As of December 31, 2025, the overall sales progress is relatively slow with an
accumulated sales rate of about 76.37% for Tianyuewan Phase I and 37.11% for Phase II.
maintenance with the 2025 operating revenues of RMB89.3293 million and of 6.02% to the operating
revenues of the Company.
the depreciation and amortization of investment property.
administrator for bankruptcy and liquidation on November 30, 2025, and thus it is no longer included in
the scope of consolidation.
X. Structured entities controlled by the Company
□ Applicable√ Not applicable
XI. Prospects for the future development of the Company
(I) Industry pattern and trend
Currently, China's real estate industry is in a dynamic bottoming-out process, with
accelerated integration of the industrial chain and market resources increasingly
concentrating in leading enterprises. The industry's development logic is shifting from
"having a place to live" to "living well," presenting new opportunities and challenges.
(II) Potential risks and countermeasures
Currently, the external environment is confronted with complex challenges such as
frequent geopolitical conflicts and accelerated anti-globalization, and China's economy
has a solid foundation, numerous advantages, strong resilience, and great potential, with
the supporting conditions and fundamental trend of long-term positive growth unchanged.
The real estate industry has a greater correlation with the macroeconomy and is more
influenced by the macroeconomic cycle. The Company will continue paying close
attention to the international and domestic macroeconomic situations and proactively
adjust its operation strategies.
At this stage, as existing policies continue to show effects, new policies are effectively
implemented, and the combined impact of policies is continuously released, the real
estate market is in the critical stage of stabilizing and halting the decline amid fluctuations.
Nevertheless, for some time to come, the real estate industry will still face many risks and
potential hidden dangers, including intensified market differentiation and insufficient
willingness of property developers to acquire land, and the market competition pattern
will present a new situation. The Company will closely monitor industry policies, follow
national strategic direction, continuously optimize the business development path, and
actively explore innovative operating models to better adapt to changes in the external
environment.
Against the backdrop of increasingly fierce competition in the real estate market, the
Company is facing challenges such as insufficient reserves of development land
resources, difficulties in selling inventory projects, and a lack of substantial results in new
business expansion, all of which are putting pressure on corporate operation and
development. The Company will closely monitor market dynamics and industry policy
trends, focus on property leasing and sales, the operations of its subsidiaries, and
business expansion, and actively seek innovative models and paths that align with its
actual development needs to flexibly respond to market challenges and explore broader
development space.
(III) Development strategy and business plan
In 2026, the primary guiding principle for SPG's work is: to adhere to Xi Jinping
Thought on Socialism with Chinese Characteristics for a New Era, thoroughly implement
the spirit of the 20th CPC National Congress and its plenary sessions, as well as the
Central Economic Work Conference, adhere to the general principle of seeking progress
while maintaining stability, and take Party building as the guide to coordinate and
advance all key tasks. Through solid and effective work, we will ensure the full
completion of our annual goals and tasks, laying a solid foundation for a good start to the
quality and efficiency to strengthen our core. First, optimize the marketing strategies
and expand sales channels, to accelerate the reduction of existing real estate inventory.
Second, efficiently revitalize our own property resources, and enhance the quality and
efficiency of asset operations, to provide strong support for the Company's development.
Third, strengthen the responsibility of the affiliated enterprises, stimulate their inherent
potential and market competitiveness, and gather a powerful force for the development of
the Company.
planning. First, scientifically plan the Group's work for the 15th Five-Year Plan by closely
following the direction of national macroeconomic policies and the reform and
development trends of state-owned assets and state-owned enterprises. Second, Unite
the efforts of all parties, and explore high-quality investment opportunities, to open up
new horizons for the Company's development. Third, promote the high-standard
construction of the characteristic industrial platform of SPG Plaza based on the
development foundation of Luohu District's characteristic industries.
control to solidify our foundation. First, resolutely uphold the bottom-line safety goals
by effectively implementing the responsibilities for workplace safety, and enhancing the
precision of accident prevention and the timeliness of response. Second, focus on
tackling the historical risks, formulate the rectification plans for each item, to strictly
prevent risk spillover. Third, fully fulfill the responsibilities for handling public complaints
and maintaining stability, as well as for public opinion management, and resolutely
prevent the ideological risks and major sudden instability incidents.
efficiency. First, strengthen and optimize the departments at the headquarters, promote
the subsidiaries to become more refined, specialized, larger and stronger in their
respective subdivisions through differentiated approaches, and at the same time, improve
the echelon building of talents. Second, strengthen the core of governance, deepen ESG
governance and market value management, improve compliance management and
internal control systems, and enhance financial coordination and fund management.
Third, further promote the refined cost management, strictly control all capital
expenditures, and strictly investigate and punish acts of extravagance and waste.
enhance the cohesiveness of our Company. First, comprehensively strengthen Party
building, consolidate the responsibility system for Party building, and promote the all-
round progress and excellence of primary Party organizations. Second, comprehensively
promote the construction of Party building brand, deepen the development of model
branch, strengthen the leadership of Party building over mass organizations, and create
a strong atmosphere of unity, hard working and entrepreneurship. Third, advance the full
and strict governance over the Party, strengthen the integrity-focused publicity and
education, promote the integration and synergy of discipline inspection with other
supervision mechanisms such as audit, finance, and compliance, and jointly build a
system where officials dare not, cannot and do not want to be corrupt.
XII. Reception, survey, communication, interview and other activities
during the reporting period
√Applicable □Not applicable
Type of Index of basic
Reception Reception Main contents discussed and
Reception time reception Reception object information of the
place mode information provided
object survey
January 02, The Written Individual Inquire about the number of
Individual Not applicable
The Written Individual Inquire about the number of
January 6, 2025 Individual Not applicable
Company inquiry investor shareholders
January 13, The Written Individual Inquire about the number of
Individual Not applicable
Telephone
January 20, The Individual Inquiry about the consulting
communicati Individual Not applicable
on
January 21, The Written Individual Inquire about the number of
Individual Not applicable
February 5, The Written Individual Inquire about the number of
Individual Not applicable
Online
communicati
February 10, The Individual Inquiry about measures to prevent
on on the Individual Not applicable
network
platform
February 11, The Written Individual Inquire about the number of
Individual Not applicable
February 18, The Written Individual Inquire about the number of
Individual Not applicable
February 19, The Written Individual Inquire about the number of
Individual Not applicable
February 21, The Written Individual Inquire about the number of
Individual Not applicable
February 27, The Written Individual Inquire about the number of
Individual Not applicable
Type of Index of basic
Reception Reception Main contents discussed and
Reception time reception Reception object information of the
place mode information provided
object survey
The Written Individual Inquire about the number of
March 03, 2025 Individual Not applicable
Company inquiry investor shareholders
Online
communicati
The Individual Inquiry about the consulting
March 07, 2025 on on the Individual Not applicable
Company investor company's business
network
platform
The Written Individual Inquire about the number of
March 10, 2025 Individual Not applicable
Company inquiry investor shareholders
The Written Individual Inquire about the number of
March 11, 2025 Individual Not applicable
Company inquiry investor shareholders
Online
communicati
The Individual Inquiry about the company's
March 14, 2025 on on the Individual Not applicable
Company investor information disclosure
network
platform
The Written Individual Inquiry about the consulting
March 21, 2025 Individual Not applicable
Company inquiry investor company's business
Telephone
The Individual Inquiry about the company's
March 24, 2025 communicati Individual Not applicable
Company investor litigation matters
on
The Written Individual Inquire about the number of
March 24, 2025 Individual Not applicable
Company inquiry investor shareholders
The Written Individual Inquire about the number of
April 01, 2025 Individual Not applicable
Company inquiry investor shareholders
Online
communicati
The Individual Inquiry about the progress of non-
April 11, 2025 on on the Individual Not applicable
Company investor compete commitment
network
platform
The Written Individual Inquire about the number of
April 17, 2025 Individual Not applicable
Company inquiry investor shareholders
The Written Individual Inquire about the number of
April 21, 2025 Individual Not applicable
Company inquiry investor shareholders
Telephone
The Individual Inquiry about the subsidiary's
April 30, 2025 communicati Individual Not applicable
Company investor business
on
The Written Individual Inquire about the number of
May 06, 2025 Individual Not applicable
Company inquiry investor shareholders
Telephone
The Individual Inquiry about the progress of non-
May 06, 2025 communicati Individual Not applicable
Company investor compete commitment
on
The Written Individual Inquire about the number of
May 8, 2025 Individual Not applicable
Company inquiry investor shareholders
The Written Individual Inquire about the number of
May 12, 2025 Individual Not applicable
Company inquiry investor shareholders
Telephone
The Individual Inquiry about the subsidiary's
May 13, 2025 communicati Individual Not applicable
Company investor business
on
The Written Individual Inquire about the number of
May 16, 2025 Individual Not applicable
Company inquiry investor shareholders
The Written Individual Inquire about the matter of
May 19, 2025 Individual Not applicable
Company inquiry investor attending the shareholders’meeting
The Written Individual Inquire about the number of
May 19, 2025 Individual Not applicable
Company inquiry investor shareholders
May 21, 2025 The Written Individual Individual Inquire about the number of Not applicable
Type of Index of basic
Reception Reception Main contents discussed and
Reception time reception Reception object information of the
place mode information provided
object survey
Company inquiry investor shareholders
The Written Individual Inquire about the number of
May 22, 2025 Individual Not applicable
Company inquiry investor shareholders
Telephone
The Individual Inquiry about the consulting
May 29, 2025 communicati Individual Not applicable
Company investor company's business
on
The Written Individual Inquire about the number of
June 03, 2025 Individual Not applicable
Company inquiry investor shareholders
The Written Individual Inquire about the number of
June 11, 2025 Individual Not applicable
Company inquiry investor shareholders
Telephone
The Individual Inquiry about the consulting
June 11, 2025 communicati Individual Not applicable
Company investor company's business
on
Telephone
The Individual Inquiry about the consulting
June 12, 2025 communicati Individual Not applicable
Company investor company's business
on
The Written Individual Inquire about the number of
June 13, 2025 Individual Not applicable
Company inquiry investor shareholders
The Written Individual Inquire about the number of
June 19, 2025 Individual Not applicable
Company inquiry investor shareholders
The Written Individual Inquire about the number of
June 23, 2025 Individual Not applicable
Company inquiry investor shareholders
Telephone Inquiry about the company's
The Individual
June 23, 2025 communicati Individual operating conditions and strategic Not applicable
Company investor
on planning
Telephone
The Individual Inquiry about the consulting
June 24, 2025 communicati Individual Not applicable
Company investor company's business
on
Telephone
The Individual Inquiry about the company's future
June 25, 2025 communicati Individual Not applicable
Company investor development plan
on
The Written Individual Inquire about the number of
July 01, 2025 Individual Not applicable
Company inquiry investor shareholders
Telephone
The Individual Inquiry about the company's
July 01, 2025 communicati Individual Not applicable
Company investor performance
on
The Written Individual Inquire about the number of
July 02, 2025 Individual Not applicable
Company inquiry investor shareholders
Telephone
The Individual Inquiry about the consulting
July 03, 2025 communicati Individual Not applicable
Company investor company's business
on
The Written Individual Inquire about the number of
July 04, 2025 Individual Not applicable
Company inquiry investor shareholders
The Written Individual Inquire about the number of
July 11, 2025 Individual Not applicable
Company inquiry investor shareholders
Telephone
The Individual Inquire about the number of
July 11, 2025 communicati Individual Not applicable
Company investor shareholders
on
The Written Individual Inquire about the number of
July 14, 2025 Individual Not applicable
Company inquiry investor shareholders
The Written Individual Inquire about the number of
July 15, 2025 Individual Not applicable
Company inquiry investor shareholders
The Written Individual Inquire about the number of
July 21, 2025 Individual Not applicable
Company inquiry investor shareholders
July 22, 2025 The Written Individual Individual Inquire about the number of Not applicable
Type of Index of basic
Reception Reception Main contents discussed and
Reception time reception Reception object information of the
place mode information provided
object survey
Company inquiry investor shareholders
The Written Individual Inquired about the number and
July 28, 2025 Individual Not applicable
Company inquiry investor register information of shareholders
The Written Individual Inquire about the number of
July 31, 2025 Individual Not applicable
Company inquiry investor shareholders
The Written Individual Inquire about the number of
August 01, 2025 Individual Not applicable
Company inquiry investor shareholders
The Written Individual Inquire about the number of
August 04, 2025 Individual Not applicable
Company inquiry investor shareholders
The Written Individual Inquire about the number of
August 06, 2025 Individual Not applicable
Company inquiry investor shareholders
The Written Individual Inquire about the number of
August 09, 2025 Individual Not applicable
Company inquiry investor shareholders
The Written Individual Inquire about the number of
August 10, 2025 Individual Not applicable
Company inquiry investor shareholders
The Written Individual Inquire about the number of
August 11, 2025 Individual Not applicable
Company inquiry investor shareholders
The Written Individual Inquire about the number of
August 11, 2025 Individual Not applicable
Company inquiry investor shareholders
The Written Individual Inquire about the number of
August 12, 2025 Individual Not applicable
Company inquiry investor shareholders
The Written Individual Inquire about the number of
August 13, 2025 Individual Not applicable
Company inquiry investor shareholders
The Written Individual Inquired about the number and
August 19, 2025 Individual Not applicable
Company inquiry investor register information of shareholders
Telephone
The Individual Inquire about the number of
August 19, 2025 communicati Individual Not applicable
Company investor shareholders
on
The Written Individual Inquire about the number of
August 20, 2025 Individual Not applicable
Company inquiry investor shareholders
The Written Individual Inquired about the number and
August 21, 2025 Individual Not applicable
Company inquiry investor register information of shareholders
The Written Individual Inquire about the number of
August 25, 2025 Individual Not applicable
Company inquiry investor shareholders
The Written Individual Inquired about the number and
August 26, 2025 Individual Not applicable
Company inquiry investor register information of shareholders
The Written Individual Inquire about the number of
August 27, 2025 Individual Not applicable
Company inquiry investor shareholders
September 01, The Written Individual Inquire about the number of
Individual Not applicable
September 05, The Written Individual Inquire about the number of
Individual Not applicable
September 8, The Written Individual Inquire about the number of
Individual Not applicable
September 09, The Written Individual Inquire about the number of
Individual Not applicable
September 11, The Written Individual Inquire about the number of
Individual Not applicable
September 22, The Written Individual Inquire about the number of
Individual Not applicable
September 24, The Written Individual Inquire about the number of
Individual Not applicable
September 25, The Written Individual Individual Inquire about the number of Not applicable
Type of Index of basic
Reception Reception Main contents discussed and
Reception time reception Reception object information of the
place mode information provided
object survey
Telephone
September 30, The Individual Inquiry about the company's
communicati Individual Not applicable
on
October 09, The Written Individual Inquire about the number of
Individual Not applicable
October 10, The Written Individual Inquire about the number of
Individual Not applicable
Telephone
October 10, The Individual Inquiry about the company's
communicati Individual Not applicable
on
October 13, The Written Individual Inquire about the number of
Individual Not applicable
October 13, The Written Individual Inquire about the number of
Individual Not applicable
Telephone
October 17, The Individual Inquired about individual
communicati Individual Not applicable
on
October 21, The Written Individual Inquire about the number of
Individual Not applicable
October 22, The Written Individual Inquire about the number of
Individual Not applicable
Telephone
October 22, The Individual Inquiry about the progress of non-
communicati Individual Not applicable
on
Telephone Inquire about the bankruptcy and
October 30, The Individual
communicati Individual liquidation application against Not applicable
on Jianbang Company
November 03, The Written Individual Inquire about the number of
Individual Not applicable
November 11, The Written Individual Inquire about the number of
Individual Not applicable
November 12, The Written Individual Inquire about the number of
Individual Not applicable
November 14, The Written Individual Inquire about the number of
Individual Not applicable
Telephone Inquire about the matter of
November 14, The Individual
communicati Individual shareholders’ shareholding Not applicable
on decrease
November 17, The Written Individual Inquire about the number of
Individual Not applicable
November 19, The Written Individual Inquire about the number of
Individual Not applicable
November 21, The Written Individual Inquire about the number of
Individual Not applicable
November 24, The Written Individual Inquire about the number of
Individual Not applicable
November 25, The Written Individual Inquire about the number of
Individual Not applicable
Telephone Inquire about the matter of
November 25, The Individual
communicati Individual shareholders’ shareholding Not applicable
on decrease
November 26, The Written Individual Inquire about the number of
Individual Not applicable
Type of Index of basic
Reception Reception Main contents discussed and
Reception time reception Reception object information of the
place mode information provided
object survey
November 27, The Written Individual Inquire about the number of
Individual Not applicable
November 28, The Written Individual Inquire about the number of
Individual Not applicable
December 01, The Written Individual Inquire about the number of
Individual Not applicable
December 02, The Written Individual Inquire about the number of
Individual Not applicable
December 04, The Written Individual Inquire about the number of
Individual Not applicable
December 10, The Written Individual Inquire about the number of
Individual Not applicable
December 11, The Written Individual Registration for the Annual General
Individual Not applicable
Telephone Inquire about the matter of
December 12, The Individual
communicati Individual shareholders’ shareholding Not applicable
on decrease
December 15, The Written Individual Inquire about the number of
Individual Not applicable
Telephone Inquire about the matter of
December 16, The Individual
communicati Individual shareholders’ shareholding Not applicable
on decrease
December 22, The Written Individual Inquire about the number of
Individual Not applicable
December 29, The Written Individual Inquire about the number of
Individual Not applicable
XIII. Formulation and implementation of market value management
system and valuation improvement plan
Whether the Company has formulated a market value management system.
□ Yes √ No
Whether the Company has disclosed plans for valuation enhancement.
□ Yes √ No
XIV. Implementation of the action plan of "double improvement of quality
return".
Whether the company has disclosed the announcement of the action plan of "double improvement of
quality return".
□ Yes √ No
Section IV Corporate Governance, Environment and
Society
I. Basic status of corporate governance
During the reporting period, the Company constantly improved its governance structure
and standardized the Company's operation in strict accordance with the requirements of
the Company Law, the Securities Law and the Governance Guidelines for Listed
Companies and other laws and regulations. During the reporting period, the Company's
governance institutions at all levels have carried out their responsibilities and authorities
clearly and definitely and have performed their own functions. At the same time, they
have checked and balanced each other in decision-making, implementation and
supervision effectively, and have operated in a coordinated manner.
(I) Operation of the general meeting of shareholders
The preparation, holding of the annual and extraordinary general meetings of
shareholders of the Company aswell as disclosure of the resolutions made at the
meetings have been carried out in strict accordance with theCompany Law, the Rules of
the General Meeting of Shareholders of Listed Companies of China SecuritiesRegulatory
Commission (CSRC), the Articles of Association and the Rules of Procedure of the
General Meeting ofShareholders of the Company. The notification time of the meeting,
the procedure of authorization, the procedure of convening, the convener, the
qualification of the personnel attending the meeting and the voting procedure of the
meeting have all been in line with relevant provisions. An on-site interaction for
shareholders has been set at the shareholders' meeting to ensure that the shareholders,
especially the small and medium-sized shareholders, can exercise their legitimate rights.
(II) Operation of the Board of Directors
The preparation and holding of the board meeting of the Company and the disclosure of
the resolution made at the meeting have been carried out in strict accordance with the
Company Law, the Self-regulation Guidelines for Listed Companies of Shenzhen Stock
Exchange No. 1-Standardized Operation of Listed Companies on the MainBoard, the
Articles of Association and the Rules of Procedure of the Board Meeting of the Company.
The number and manning of the board of directors have met the requirements of laws
and regulations. The directors have worked diligently and responsibly, and the board of
directors has worked hard in making decisions and setting the direction for the Company,
and has exercised its power in accordance with the requirements for corporate
governance.
(III) Operation of the management
The management of the Company performed its duties in strict accordance with the
Company Law, the Guidelines for Self-Regulation of Companies Listed on Shenzhen
Stock Exchange No. 1 - Standardized Operation of Companies Listed on the Main Board,
the Articles of Association and the Working Rules of the General Manager. The
management is fully responsible for the production and operation management of the
Company, diligently and dutifully performs its duties, effectively implements the decisions
of the Board of Directors, and the division of labor among the management is clear, and
there is no "insider control".
Whether there is any significant difference between the actual status of corporate governance and the
laws, administrative regulations and the provisions issued by the China Securities Regulatory
Commission on the governance of listed companies
□ Yes √ No
There are no significant differences between the actual status of corporate governance and the laws,
administrative regulations and the provisions issued by the China Securities Regulatory Commission on
the governance of listed companies
II. The independence of the Company from the controlling shareholder
and actual owner in terms of assets, personnel, finance, organization
and business
(I) Assets: The Company's assets are independent, without any illegal occupation by the
controlling shareholder.
(II) In respect of personnel, the Company was absolutely independent in management of
labour, personnel and salaries from the controlling shareholders. All the senior
executives of the Company took no office title concurrently at the Shareholder Company.
(III) In respect of finance, the Company has independent financial department, paid taxes
according to the law, and opened independent bank accounts.
(IV) Organization: The Company has office premises independent of the controlling
shareholder, without any situations of mixed operations or shared offices; The
Company's board of directors and other internal organizations operated independently.
(V) In respect of business, the Company has independent and complete business and
independent operation ability.
III. Horizontal competitions
√Applicable □Not applicable
Type of
Probl related Work progress
Company Natur Problem
em relationship Solution and follow-up
name e Cause
type with listed plan
companies
Both the between SZPRD and SPG. For the matters, please
Company and existing businesses of Shenzhen refer to the
Shenzhen PropertyManagement that are in Announcement
Properties & competition with SPG, SIHCwill initiate on the
Resources one or more practically operable solutions Application of
Development within the scope allowed by laws and the Company's
(Group) Ltd. regulations and complete the Controlling
(referred to as implementation of related solutions by 9 Shareholder for
SZPRD) are November 2026, to resolve the existing Change of
subsidiaries horizontal competition issue: Commitments
controlled by (1) Solve the horizontal competition on Avoiding
Shenzhen through asset sales or asset swaps; (2) Horizontal
Horiz
Shenzhen Investment Solve the horizontal competition through Competitions
ontal Controlling
Investment Other Holdings Co., equity transfers, (3) Other measures that (Announcemen
comp shareholde
Holdings s Ltd, and are can effectively address the horizontal t No.: 2024-
etition r
Co., Ltd. engaged in competition. 035) and the
s
real estate Announcement
development on the
competition. As the controlling shareholder
and Resolution of
of the listed company and during the
commercial the Third
period when the listed company is listed
housing sales, Extraordinary
on the Shenzhen Stock Exchange,
which belong General
companies, enterprises, and economic
to the same Meeting of
organizations controlled or actually
industry and 2024
controlled by SIHC (excluding enterprises
thus have a (Announcemen
controlled by the listed company,
situation of t No.: 2024-41)
collectively referred to as "subsidiaries")
horizontal disclosed by
will not engage in business directly
competition. the Company
competitive with the listed company in new
business fields other than those where on September
there is existing horizontal competition. 30 and October
SIHC commits not to seek unfair benefits 19, 2024
through its status as the controlling respectively.
shareholder of the listed company, thereby
harming the rights and interests of the
listed company and its shareholders. In
case of violation of the above
commitments, SIHC will bear the
corresponding legal responsibilities,
including but not limited to compensation
for all losses caused to the listed
company.
IV. Directors and Senior Management
Number Numbe Numbe
Number
of r of r of Reason
of
shares shares shares s for
shares
Beginning Ending held at reduce Other held at increase
Gende Ag Employme increase
Name Position date of date of the d in the increase/decrea the end or
r e nt status d the
term term beginnin current se (shares) of the decreas
current
g of the period period e in
period
period (shares (shares share
(shares)
(shares) ) )
Chairman
Chen Decembe
Male 52 of the Incumbent 0 0 0 0 0
Ming r 16, 2025
Board
Septemb
Qian
Male 52 Director Incumbent er 12, 0 0 0 0 0
Zhong
Secretary
of the
Wang
Discipline April 1,
Jiangta Male 59 Incumbent 0 0 0 0 0
Inspection 2022
o
Commissio
n
Wang October
Male 53 Director Incumbent 0 0 0 0 0
Jianfei 11, 2021
Septemb
Wang Financial
Male 53 Incumbent er 0 0 0 0 0
Jianfei Director
Li
Novembe
Wenku Male 52 Director Incumbent 0 0 0 0 0
r 30, 2023
n
Meng August
Male 50 Director Incumbent 0 0 0 0 0
Fei 23, 2024
Peng
March 6,
Xingtin Male 44 Director Incumbent 0 0 0 0 0
g
He Independe June 30,
Male 63 Incumbent 0 0 0 0 0
Zuowen nt director 2020
Mi Independe June 30,
Male 50 Incumbent 0 0 0 0 0
Xuming nt director 2020
Liu Independe May 17,
Male 54 Incumbent 0 0 0 0 0
Haifeng nt director 2024
Zhang Deputy
July 15,
Hongw Male 59 General Incumbent 0 0 0 0 0
ei Manager
Deputy
Huang July 29,
Male 53 General Incumbent 0 0 0 0 0
Weijun 2022
Manager
Deputy
Wu July 29,
Male 54 General Incumbent 0 0 0 0 0
Zhiyong 2022
Manager
Secretary
to the
Decembe
Luo Yi Male 52 Board of Incumbent 0 0 0 0 0
Directors, r 31, 2020
Office
Director of
the Board
of Directors
Tang Chairman Decemb
March 30,
Xiaopin Male 55 of the Resigned er 16, 0 0 0 0 0
g Board 2025
Tang Decemb
Decembe
Xiaopin Male 55 Director Resigned er 16, 0 0 0 0 0
r 31, 2020
g 2025
Tang Decemb
General Decembe
Xiaopin Male 55 Resigned er 16, 0 0 0 0 0
manager r 14, 2020
g 2025
Zhang
March 30, March 6,
Manhu Male 51 Director Resigned 0 0 0 0 0
a
Total -- -- -- -- -- -- 0 0 0 0 0 --
Whether there have been departures of any directors, supervisors, or dismissals of senior management
personnel during their terms of office in the reporting period
√ Yes □ No
which Mr. Chen Ming was elected as a director of the Company. Mr. Tang Xiaoping ceased to hold the
positions of Chairman, director, legal representative, and General Manager of the Company. On the
same day, the Company held the 26th meeting of the 8th Board of Directors, at which Mr. Chen Ming
was elected as the Chairman and legal representative of the Company, and would serve as the
Chairman of the Strategy Committee and the Compliance Committee of the Board of Directors. For
details, please refer to the Announcement on Resolutions of the Second Extraordinary General Meeting
of 2025 and the Announcement on Resolutions of the 26th Meeting of the 8th Board of Directors, both
disclosed by the Company on December 17, 2025.
Peng Xingting was elected as a director of the Company. Mr. Zhang Manhua ceased to be a director of
the Company and no longer holds any other position in the Company. For details, please refer to the
Announcement on Resolutions of the 27th Meeting of the 8th Board of Directors disclosed by the
Company on February 13, 2026, and the Announcement on Resolutions of the First Extraordinary
General Meeting of 2026 disclosed on March 7, 2026.
Changes in directors and senior management of the Company
√Applicable □Not applicable
Name Position Type Date Reasons
Chairman and
Tang Xiaoping Resigned December 16, 2025 Job transfer
General Manager
Zhang Manhua Director Resigned March 6, 2026 Job transfer
Professional background, work experience and main duties in the Company of existing directors and
senior management
Chen Ming: Formerly served as Deputy General Manager of Shenzhen Jianan (Group)
Co., Ltd., and Secretary of the Party Committee and Chairman of China Shenzhen
Foreign Trade (Group) Co., Ltd. He currently serves as Chairman and Secretary of the
Party Committee of Shenzhen Special Economic Zone Real Estate & Properties (Group)
Co., Ltd.
Qian Zhong: He once acted as the Director of the Board of Directors Office (Strategy
Research Office), Member of the Discipline Inspection Committee, and the Head of the
Operation Management Department of Shenzhen Properties & Resources Development
(Group) Ltd.; currently serving as the Deputy Secretary of the CPC, Director, and
Chairman of the Trade Union Confederation of Shenzhen Special Economic Zone Real
Estate & Properties (Group) Co., Ltd.
Wang Jiangtao: He once worked as the Executive Deputy General Manager and Party
Branch Secretary of Shenzhen Foreign Economic and Trade Investment Company,
Director, Secretary of the Discipline Inspection Commission and Party Commission, and
Chairman of the Supervisory Board of Shenzhen General Institute of Architectural Design
and Research Co., Ltd.; he currently serves as the Secretary of the Discipline Inspection
Commission and a member of the Party Committee of Shenzhen Special Economic Zone
Real Estate & Properties (Group) Co., Ltd.
Wang Jianfei: He once acted as the Head of the Financial Management Department of
Shenzhen Construction Development (Group) Company, Deputy General Manager of
Hubei Shentou Control Investment Development Co., Ltd.; currently serving as Director,
Chief Financial Officer, and Member of the Party Committee of Shenzhen Special
Economic Zone Real Estate & Properties (Group) Co., Ltd.
Li Wenkun: Previously, a Deputy General Manager of Shenzhen Toukong Property
Management Co., Ltd., a Director, a Deputy Secretary of the Party Committee, and the
Secretary of the Discipline Inspection Commission of Shenzhen Shentou Environmental
Protection Technology Co., Ltd., and a Director, and a Deputy Secretary of the Party
Committee of Shenzhen Environmental Protection Technology Group Co., Ltd. (original
name was Shenzhen Shentou Environmental Protection Technology Co., Ltd.); currently,
a Director of Shenzhen Water Planning and Design Institute Co., Ltd., and a Director of
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
Meng Fei: He previously worked at Shenzhen Tianhong Shopping Mall Co., Ltd. and
Shenzhen Press Group, and served as a Senior Manager and Deputy Head of the
Financial Department (Settlement Center) of Shenzhen Investment Holdings Co., Ltd. He
currently serves as a director and Chief Financial Officer of Shenzhen-Hong Kong
Innovation and Technology Cooperation Zone Development Co., Ltd., a director of SIHC
Hong Kong Investment Holdings Limited, a director of Shenzhen Textile (Holdings) Co.,
Ltd, and a director of Shenzhen Special Economic Zone Real Estate & Properties (Group)
Co., Ltd.
Peng Xingting: He formerly served as Deputy Director of the Strategic Research
Department (Board of Directors' Office) of Shenzhen Investment Holdings Co., Ltd. He
currently serves as the Director of the Strategic Management Department of Shenzhen
Investment Holdings Co., Ltd., a director of China Shenzhen Foreign Trade (group) Co.,
Ltd., a supervisor of Guotai Junan Investment Management Co., Ltd., a director of
Shenzhen Data Exchange Co., Ltd., and a director of Shenzhen Special Economic Zone
Real Estate & Properties (Group) Co., Ltd.
He Zuowen: He once worked as Associate Professor of Accounting at Changsha
University of Science & Technology (formerly Changsha Electric Power Institute), Partner
at Shenzhen Huapeng Accounting Firm, Head of the Shenzhen branch of Beijing
Zhongtian Huazheng Certified Public Accountants (now Da Hua Certified Public
Accountants LLP), Partner at Lixin Accounting Firm; currently serving as Partner,
Member of the Partner Management Committee, and Secretary of the Party Branch of
Zhengdan Zhiyuan (Shenzhen) Certified Public Accountants (Special General
Partnership), Chairman of Shenzhen Tianye Taxation Firm Co., Ltd., and Independent
Director of Shenzhen Ruijie Technology Co., Ltd. and Shenzhen Special Economic Zone
Real Estate & Properties (Group) Co., Ltd. Major social positions include: Off-campus
Master's Tutor at Shenzhen University, Member of the Shenzhen Institute of Certified
Public Accountants Industry Committee of the Communist Party of China, Expert in
Expert Database of Shenzhen State-owned Assets Supervision and Administration
Commission, Shenzhen Development and Reform Commission, Shenzhen Science and
Technology Innovation Commission, Shenzhen Radio and Television Culture, Tourism
and Sports Bureau, and Shenzhen United Property And Share Rights Exchanged.
Mi Xuemin: He once worked as a lecturer and associate professor at Shenzhen
University, holds a PhD in Management from Xiamen University, a postdoctoral
fellowship in Applied Economics from Xiamen University, and was a visiting scholar at
the University of Exeter's Department of Accounting in the UK. He is currently a professor
and doctoral supervisor at the Department of Accounting in Shenzhen University, as well
as an independent director at Shenzhen Farben Information Technology Co., Ltd.,
OFILM Group Co., Ltd., Ruineng Semiconductor Technology Co., Ltd. and Shenzhen
Special Economic Zone Real Estate & Properties (Group) Co., Ltd..
Liu Haifeng: Formerly served as a partner at Guangdong Xintong Law Firm and an
independent director of Shenzhen CEREALS HOLDINGS Co., Ltd. He currently serves
as a primary partner at Guangdong Hancheng Law Firm and an independent director of
CR Trust, and Shenzhen Special Economic Zone Real Estate & Properties (Group) Co.,
Ltd.
Zhang Hongwei: He once worked as the General Manager of Shenzhen Urban
Construction Investment Development Co., Ltd. and Hefei Ruifa Urban Construction
Investment and Development Co., Ltd., and Manager of the Development Department,
Sales Department, Project Department II, and Engineering Management Department of
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.; currently
the Deputy General Manager and a member of the Party Committee of Shenzhen
Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
Huang Weijun: Once served as a member of the Party Committee, Secretary of the
Committee for Discipline Inspection and Deputy GM of Shenzhen Guangming Group Co.,
Ltd., a member of the Party Committee, Secretary of the Committee for Discipline
Inspection and Deputy GM of Shenzhen OCT Vision Inc. (concurrently as an executive
director of Shenzhen OCT International Media Performing Co., Ltd.), and now serving as
the Deputy GM, member of the CPC of Shenzhen Special Economic Zone Real Estate &
Properties (Group) Co., Ltd.
Wu Zhiyong: Once served as the Chairman and GM of Shenzhen Petrel Hotel Co., Ltd.,
Deputy Manager of Property Management Department and Manager of the Asset
Operation Center of Shenzhen Special Economic Zone Real Estate & Properties (Group)
Co., Ltd.; and now serving as the Deputy GM, member of the CPC of Shenzhen Special
Economic Zone Real Estate & Properties (Group) Co., Ltd.
Luo Yi: He was once the Vice GM, Deputy Director of Board Secretariat and Securities
Representative in the Shantou branch of Shenzhen Special Economic Zone Real Estate
& Properties (Group) Co., Ltd. Currently, he serves as the Board Secretary and Office
Director of the Board in Shenzhen Special Economic Zone Real Estate & Properties
(Group) Co., Ltd.
Situation where the controlling shareholder and actual controller concurrently serve as the chairman and
general manager of the listed company
□ Applicable√ Not applicable
*.Positions held in shareholders
√Applicable □Not applicable
Whether to
Endin receive
Name of the
Positions held in Beginning date of g date remuneration
appointed Name of shareholder
shareholders term of allowance from
personnel
term the shareholder
unit
Director of Strategic
Shenzhen Investment
Peng Xingting Management June 5, 2024 Yes
Holdings Co., Ltd.
Department
Description of
the positions Not applicable
held in
shareholders
*.Position in other entities
√Applicable □Not applicable
Whether to
Name of
Ending receive
the Positions held in other Beginning date of
Name of other entities date of remuneration
appointed entities term
term allowances in
personnel
other entities
Li Shenzhen Water Planning
Director September 4, 2023 No
Wenkun & Design Institute Co., Ltd.
Shenzhen Shenzhen-Hong
Kong Science and
Director and Finance
Meng Fei Technology Innovation April 18, 2025 Yes
Director
Cooperation Zone
Development Co., Ltd.
Hong Kong Investment
Holdings Co., Ltd. under
Meng Fei Director July 18, 2024 No
Shenzhen Investment
Holdings
Shenzhen Textile
Meng Fei Director 23 July 2024 No
(Holdings) Co., Ltd.
China Shenzhen Foreign
Peng
Trade (Group) Company Director August 16, 2021 No
Xingting
Limited
Peng Guotai Junan Securities
Supervisor December 30, 2021 No
Xingting Co., Ltd.
Peng Shenzhen Data Exchange
Director March 17, 2023 No
Xingting Co., Ltd.
Zhengdan Zhiyuan
(Shenzhen) Certified Partner, and Member of
He
Public Accountants the Partner Management December 31, 2023 Yes
Zuowen
(Special General Committee
Partnership)
He Shenzhen Tianye Taxation
Chairman of the Board September 03, 2007 Yes
Zuowen Firm Co., Ltd.
He Shenzhen Ruijie
Independent director October 11, 2024 Yes
Zuowen Technology Co., Ltd.
Mi Professor and Doctoral
Shenzhen University December 01, 2009 Yes
Xuming Supervisor
Shenzhen Farben
Mi
Information Technology Independent director January 29, 2021 Yes
Xuming
Co., Ltd.
Mi
OFILM Group Co., Ltd. Independent director October 11, 2023 Yes
Xuming
Mi Ween Semiconductors
Independent director December 22, 2025 Yes
Xuming Co., Ltd.
Liu Guangdong Hancheng
Primary partner February 01, 2007 Yes
Haifeng Law Firm
Liu
CR Trust Independent director February 28, 2025 Yes
Haifeng
Explanati
on of None
serving in
other
entities
Punishments imposed in the recent three years by the securities regulator on the incumbent directors
and senior management as well as those who left in the Reporting Period:
□ Applicable√ Not applicable
Decision-making procedure, determination basis and actual payments of remuneration for directors and
senior management:
The remuneration of the Company's directors and senior management shall be
determined and implemented in accordance with the regulations of the Company's
remuneration management system.
After the review and approval at the 2022 Annual General Meeting of Shareholders held
on 28 April 2023, the allowance for independent directors has been adjusted to
RMB10,000 (pre-tax) per person per month from RMB7000 (pre-tax) per person per
month since May 2023, and independent directors will not receive any remuneration
other than it from the Company.
Remuneration of directors and senior management during the Reporting Period
Unit: RMB10,000
Whether get
paid from
Gende Employme Total pre-tax compensation
Name Age Position related parties
r nt status received from the Company
of the
Company
Chairman of the
Chen Ming Male 52 Incumbent 0 Yes
Board
Qian Zhong Male 52 Director Incumbent 76.52 No
Secretary of the
Wang Jiangtao Male 59 Discipline Inspection Incumbent 103.2 No
Commission
Director and Finance
Wang Jianfei Male 53 Incumbent 96 No
Director
Zhang Manhua Male 51 Director Resigned 0 Yes
Li Wenkun Male 52 Director Incumbent 0 Yes
Meng Fei Male 50 Director Incumbent 0 Yes
He Zuowen Male 63 Independent director Incumbent 12 No
Mi Xuming Male 50 Independent director Incumbent 12 No
Liu Haifeng Male 54 Independent director Incumbent 12 No
Deputy General
Zhang Hongwei Male 59 Incumbent 78.31 No
Manager
Deputy General
Huang Weijun Male 53 Incumbent 81.16 No
Manager
Deputy General
Wu Zhiyong Male 54 Incumbent 81.16 No
Manager
Secretary to the
Board of Directors,
Luo Yi Male 52 Incumbent 58.05 No
Office Director of the
Board of Directors
Tang Xiaoping Male 55 Chairman and Resigned 87.73 Yes
General Manager
Total -- -- -- -- 698.13 --
Basis for performance assessment of the actual The relevant remuneration management systems of the
remuneration for all directors and senior management at Company and its controlling shareholder for directors and
the end of the reporting period senior executives.
In 2025, the scoring of some performance indicators for
non-independent directors and senior management for the
Completion of performance assessment for the actual year 2024 has been completed. The final score is pending
remuneration for all directors and senior management at confirmation after the controlling shareholder verifies the
the end of the reporting period 2024 operating performance assessment results of the
Company; the allowances of independent directors are not
subject to performance assessment.
Deferred payment arrangements are not applicable to the
independent directors; in 2025, the 2023 performance-
Deferred payment arrangements for the actual based annual salary and part of the 2024 performance-
remuneration of all directors and senior management at based annual salary for non-independent directors and
the end of the reporting period senior management have been paid, but part of the 2025
performance-based annual salary and term-of-office
incentive income have not yet been paid.
Withholding and clawback of actual remuneration of all
directors and senior management at the end of the Not applicable.
reporting period
Other circumstances
□ Applicable√ Not applicable
V. Performance of Duty by Directors during the Reporting Period
Attendance of directors at board meetings and general meetings
Whether to
Number of
Number of fail to attend
the board Number of Number of Number of
the board the meeting Number of
meetings to the board the board absences
Name of meetings of the Board general
be attended meetings meetings from the
director attended by in person for meetings
during this attended on attended by Board
communicati two attended
reporting site proxy meetings
on consecutive
period
times
Chen Ming 1 1 0 0 0 No 0
Tang
Xiaoping
Qian Zhong 11 3 8 0 0 No 3
Wang Jianfei 11 3 8 0 0 No 3
Zhang
Manhua
Li Wenkun 11 3 8 0 0 No 3
Meng Fei 11 0 11 0 0 No 2
He Zuowen 11 3 8 0 0 No 3
Mi Xuming 11 3 8 0 0 No 2
Liu Haifeng 11 2 9 0 0 No 3
Description of the failure to attend the board meetings in person for two consecutive times
Not applicable.
Whether the directors have raised any objections to relevant matters of the Company?
□ Yes √ No
During the reporting period, the directors did not raise any objection to the relevant matters of the
Company.
Whether the relevant suggestions of the directors to the Company have been adopted
√ Yes □ No
Director's statement on the adoption or non-adoption of the Company's relevant proposals
During the Reporting Period, all directors of the Company performed their duties
diligently and conscientiously. They thoroughly mastered the Company’s production and
operation, internal control, and standardized operation, and put forward relevant opinions
on the Company’s major governance and operation decisions based on their professional
advantages. These opinions were fully communicated and discussed among the
directors before forming consensus, which effectively promoted scientific and objective
decision-making by the Board of Directors, and helpfully safeguarded the legitimate rights
and interests of the Company and all shareholders.
VI. Performance of Duty by Specialized Committees under the Board in
the Reporting Period
Number Important Details
Other
Name of Membershi of Date of Content of the opinions and of
performanc
committee p meeting meeting meeting suggestions put objection
e of duties
s held forward s (if any)
It is agreed that
the schedule,
important audit
matters, key
The schedule
areas of focus,
for the 2024
and proposed
annual
audit
financial
procedures for
statements
Audit He the 2024
and internal
Committee Zuowen, January financial
of the Board Mi Xuming, 13, 2025 statements and
important
of Directors Meng Fei internal control
audit matters,
audit conducted
key areas of
by Pan-China
focus, and
Certified Public
proposed
Accountant
audit
(LLP) were
agreed upon.
procedures was
reviewed.
Deliberation It is concluded
Audit He
on the draft of that the draft
Committee Zuowen, March 18,
of the Board Mi Xuming, 2025
Auditor's prepared by
of Directors Meng Fei
Report Pan-China
Number Important Details
Other
Name of Membershi of Date of Content of the opinions and of
performanc
committee p meeting meeting meeting suggestions put objection
e of duties
s held forward s (if any)
Certified Public
Accountant
(LLP) complies
with the various
provisions of
enterprise
accounting
standards and
truly and
completely
reflects the
company's
financial status
as of 31
December
as the
operating
results and
cash flows for
the year 2024.
The audit work
for the 2024
financial report
was completed
well.
concluded that
the Company's
financial
statements are
Deliberation
prepared in
on the 2024
accordance
annual
with the
financial
provisions of
report
enterprise
statement
accounting
and financial
standards in all
information in
material
the 2024
respects, and
annual report,
are true,
the 2024
reliable, and
Audit He internal
complete. The
Committee Zuowen, March 20, control self-
of the Board Mi Xuming, 2025 assessment
report prepared
of Directors Meng Fei report,
by Pan-China
provisions for
Certified Public
credit
Accountant
impairment
(LLP) fairly
and asset
reflects the
impairment
Company's
for the year
financial status,
operating
results, and
Audit Work
cash flows for
Summary
Report
material
respects.
concluded that
the Company's
Number Important Details
Other
Name of Membershi of Date of Content of the opinions and of
performanc
committee p meeting meeting meeting suggestions put objection
e of duties
s held forward s (if any)
Control Self-
assessment
Report
comprehensivel
y, objectively,
and truly
reflects the
actual situation
of internal
control in 2024.
The Company
has maintained
effective
internal control
over financial
reports in all
material
respects in
accordance
with the
requirements of
the
standardized
system of
enterprise
internal control
and relevant
regulations.
During the
reporting
period, no
significant
deficiencies or
material
weaknesses in
internal controls
over financial
reporting were
identified within
the company,
and no
significant
deficiencies or
material
weaknesses in
internal controls
outside of
financial
reporting were
found.
concluded that
the provisions
for credit
impairment and
asset
impairment for
the year 2024
by the company
are conducted
in accordance
Number Important Details
Other
Name of Membershi of Date of Content of the opinions and of
performanc
committee p meeting meeting meeting suggestions put objection
e of duties
s held forward s (if any)
with and
comply with the
provisions of
the Accounting
Standards for
Business
Enterprises and
the relevant
company
policies. The
basis for these
provisions is
sufficient and
aligns with the
Company's
operational
status. This
provision for
credit and asset
impairment is
based on the
principle of
prudence,
helping to more
fairly reflect the
Company's
financial status
and operating
results as of 31
December
the Company's
accounting
information
more
reasonable.
audit work
conducted in
recognized and
the company is
requested to
carry out its
audit work in
accordance
with the work
plan.
Deliberation 1. It is
on First concluded that
Quarter 2025 the First
Report, the Quarter 2025
Audit He 2024 Annual Report truly,
Committee Zuowen, April 17, Internal accurately, and
of the Board Mi Xuming, 2025 Control completely
of Directors Meng Fei System Work reflects the
Report, and Company's
the First financial status,
Quarter 2025 operating
Internal Audit results, and
Number Important Details
Other
Name of Membershi of Date of Content of the opinions and of
performanc
committee p meeting meeting meeting suggestions put objection
e of duties
s held forward s (if any)
Work Report cash flow for
the first quarter
of 2025.
concluded that
the company's
Internal Control
System Work
Report
comprehensivel
y, objectively
and truthfully
reflects the
construction
and supervision
of the internal
control system
in 2024.
audit work
conducted in
first quarter of
recognized and
the company is
requested to
carry out its
audit work
continuously in
accordance
with the work
plan.
concluded that
the Semi-
annual Report
for 2025 truly,
accurately, and
completely
reflects the
Company's
financial status,
Deliberation operating
on the Semi- results, and
Audit He annual Report cash flow for
Committee Zuowen, August for 2025, and the first half of
of the Board Mi Xuming, 20, 2025 the Report on 2025.
of Directors Meng Fei Internal Audit 2. The internal
for the first audit work
half of 2025 conducted in
the first half of
recognized and
the company is
requested to
carry out its
audit work
continuously in
accordance
with the work
Number Important Details
Other
Name of Membershi of Date of Content of the opinions and of
performanc
committee p meeting meeting meeting suggestions put objection
e of duties
s held forward s (if any)
plan.
concluded that
the Third
Quarter 2025
Report truly,
accurately, and
completely
reflects the
Company's
financial status,
operating
Deliberation results, and
on the Third cash flow for
Audit He Quarter 2025 the third quarter
Committee Zuowen, October Report, and of 2025.
of the Board Mi Xuming, 14, 2025 the Third
of Directors Meng Fei Quarter 2025 2. The internal
Internal Audit audit work
Work Report conducted in
third quarter of
recognized and
the company is
requested to
carry out its
audit work
continuously in
accordance
with the work
plan.
to the
"Evaluation
Report on the
Performance of
Deliberation the Accounting
on the Firm for 2024".
Evaluation
Report on the
to the "Report
Performance
of the Board's
of the
Audit
Accounting
Committee on
Firm for 2024,
its Supervision
the Report of
Audit He of the
the Board's
Committee Zuowen, Novembe Accounting
of the Board Mi Xuming, r 5, 2025 Firm".
Committee on
of Directors Meng Fei 3. It is agreed
its
Supervision to appoint Pan-
of the China Certified
Accounting Public
Firm, and the Accountants
proposed (Special
proposed General
renewal of the Partnership) as
audit firm the audit firm of
the Company
for its 2025
financial
statement and
internal control.
Number Important Details
Other
Name of Membershi of Date of Content of the opinions and of
performanc
committee p meeting meeting meeting suggestions put objection
e of duties
s held forward s (if any)
It is concluded
that the
compensation
decision-
making process
for the
Company's
directors and
senior
management
members
The annual
complies with
compensation
Remuneratio regulations.
of directors
n and Mi Xuming, The
and senior
Appraisal Wang March 07, compensation
Committee Jianfei, He 2025 standards for
disclosed in
of the Board Zuowen directors and
the 2024
of Directors senior
annual report
management
was reviewed
members align
with the
established
compensation
system. The
compensation
information
disclosed in the
report is true
and accurate.
It is concluded
that the 2023
Performance
Assessment
and Application
Plan for senior
management
Deliberation are consistent
on the with the actual
"Performance situation,
Remuneratio
Assessment providing a
n and Mi Xuming,
Results and relatively
Appraisal Wang June 23,
Committee Jianfei, He 2025
Plan for comprehensive
of the Board Zuowen
Senior evaluation of
of Directors
Management the assessed
for the Year individuals, and
interests of the
Company and
its
shareholders,
especially the
minority
shareholders.
Deliberation It is concluded
Remuneratio Mi Xuming, on the that the revised
n and Wang July 15, revision of the
Appraisal Jianfei, He 2025 "Measures for Operating
Committee Zuowen Operating Performance
of the Board
Performance Assessment
Number Important Details
Other
Name of Membershi of Date of Content of the opinions and of
performanc
committee p meeting meeting meeting suggestions put objection
e of duties
s held forward s (if any)
of Directors Assessment and
and Remuneration
Remuneration Management of
Management Senior
of Senior Management"
Management" comply with the
income
distribution
policies for
state-owned
enterprises and
the relevant
requirements of
the municipal
state-owned
assets
supervision,
which will
effectively
enhance the
loyalty and
diligence of the
management
team, and
further improve
the
performance
evaluation, and
the incentive
and restraint
mechanisms for
senior
management,
thus enhancing
the corporate
governance of
the Company.
concluded that
the letter of
responsibility
for annual
Deliberation business
on the performance
formulation of about senior
the operating management
performance members in
Remuneratio
responsibility 2025 meets the
n and Mi Xuming,
letters and requirements of
Appraisal Wang August
Committee Jianfei, He 21, 2025
agreements performance
of the Board Zuowen
for senior assessment
of Directors
management, indicators for
and the 2025. It is
revision of the aligned with the
"Enterprise key work points
Annuity Plan" for the year and
the division of
responsibilities
among the
leadership
team members.
Number Important Details
Other
Name of Membershi of Date of Content of the opinions and of
performanc
committee p meeting meeting meeting suggestions put objection
e of duties
s held forward s (if any)
The agreement
demonstrates
good scientific
and rational
principles and
does not harm
the interests of
the company
and its
shareholders,
particularly the
interests of
minority
shareholders.
to the
"Enterprise
Annuity Plan".
It is concluded
that the "2024
Performance
Assessment
Implementation
Plan for SPG
Senior
Executives"
complies with
the provisions
of the
"Measures for
Operating
Performance
Assessment
and
Remuneration
Deliberation
Management of
on the
SPG Senior
Remuneratio formulation of
Management".
n and Mi Xuming, the 2024
Septemb The
Appraisal Wang Performance
Committee Jianfei, He Assessment
of the Board Zuowen Implementatio
scientifically
of Directors n Plan for
sound and
SPG senior
reasonable,
executives
and do not
harm the
interests of the
Company and
its
shareholders,
especially the
minority
shareholders.
Approval is
given to submit
the relevant
proposals to
the Company's
Board of
Directors for
review.
Number Important Details
Other
Name of Membershi of Date of Content of the opinions and of
performanc
committee p meeting meeting meeting suggestions put objection
e of duties
s held forward s (if any)
After reviewing
the relevant
data of the
nominee, it is
concluded that
Mr. Chen Ming
meets the
qualification
requirements
stipulated by
relevant laws,
administrative
regulations,
departmental
rules, and
normative
documents.
There is no
circumstance
where he is
prohibited from
serving as a
director
according to
the Company
Law and other
laws and
regulations. He
Liu Deliberation has not been
Nomination Haifeng, Novembe on the punished by the
Committee Qian 1 r 21, proposed China
of the Board Zhong, He 2025 change of Securities
Zuowen directors Regulatory
Commission or
other relevant
departments,
nor has he
received
disciplinary
actions from
the stock
exchange.
There is no
situation where
he is under
investigation by
judicial
authorities for
suspected
crimes or is
under
investigation by
the China
Securities
Regulatory
Commission for
suspected
violations of
laws and
regulations. He
has not been
listed on the
Number Important Details
Other
Name of Membershi of Date of Content of the opinions and of
performanc
committee p meeting meeting meeting suggestions put objection
e of duties
s held forward s (if any)
public
information
platform for
illegal and
dishonest
conduct in the
securities and
futures market
by the CSRC,
nor has he
been included
in the list of
dishonest
persons subject
to enforcement
by any people's
court. It is
agreed to
nominate Mr.
Chen Ming as a
candidate for
the Company's
director.
It is concluded
that the "2024
Annual Report
on Compliance
Construction"
truthfully,
accurately and
completely
Tang
Deliberation reflected the
Xiaoping,
on the Company's
Qian
Compliance "Proposal for progress in
Zhong,
Committee April 15, the 2024 promoting the
Wang 1
of the Board 2025 Annual construction of
Jianfei, Liu
of Directors Report on its compliance
Haifeng,
Compliance management
He
Construction" system in 2024,
Zuowen
and agreed to
submit the
relevant
proposal to the
Company's
Board of
Directors for
deliberation.
VII. Performance of Duty by the Audit Committee
The Audit Committee finds out whether the company has risks during the monitoring activities during the
reporting period
□ Yes √ No
The Audit Committee has no objection to the supervision matters during the reporting period.
VIII. Company's employees
Number of employees of the parent company at the end of
the reporting period (person)
Number of in-service employees of major subsidiaries at
the end of the reporting period
Total number of in-service employees at the end of the
reporting period (person)
Total number of employees receiving salaries in the current
period (person)
Number of retired employees whose expenses shall be
borne by the parent company and major subsidiaries
Professional composition
Professional composition category Number of employees of each category (person)
Production personnel 36
Sales personnel 29
Technical personnel 43
Financial personnel 28
Administrative staff 74
Total 210
Education level
Education level category Quantity (person)
Doctor 3
Postgraduate 24
Undergraduate 100
Junior college 43
Technical college degree 3
High school diploma or below 37
Total 210
The management personnel above vice general manager (including vice GM) of the
Company conducted annual salary system, other employees conducted contacting the
performance with the benefit salary system.
The Company formulates an annual training plan based on the Employee Training
Management Measures. The Company implements training for current employees
through methods such as internal training, inviting experts for on-site lectures, or
participating in specialized external training programs. This training covers aspects such
as job knowledge, professional skills, regulations, and business processes. The goal is to
enrich and update employees' professional knowledge, enhance their overall quality, and
improve their business skills.
√Applicable □Not applicable
Total hours of labor outsourcing (hours) 59,501
Total remuneration paid for labor outsourcing (RMB) 2,223,876.36
IX. Specification of profit distribution and capitalizing of common
reserves
Formulation, implementation or adjustment of the profit distribution policy during the reporting period,
especially the cash dividend policy
√Applicable □Not applicable
During the reporting period, the Company revised the profit distribution clauses in the
"Articles of Association" in accordance with regulations such as the "Regulatory
Guidelines for Listed Companies No. 3—Distribution of Cash Dividends of Listed
Companies", the "Guidelines for Articles of Association of Listed Companies", and the
"No. 1 Guidelines for the Self-supervision of Listed Companies on the
ShenzhenStockExchange - Standard Operations of Companies Listed on the Main
Board". The revised "Articles of Association" was reviewed and approved at the first
extraordinary general meeting of 2025 held on November 26, 2025.
Special instructions for cash dividend policy
Whether it meets the requirements of the Articles of
Association or the resolution of the general meeting of Yes
shareholders:
Whether the dividend standards and proportions are
Yes
explicit and clear:
Whether relevant decision-making procedures and
Yes
mechanisms are complete:
Whether the Independent Directors have fulfilled their
Yes
duties and played their due roles:
If the Company does not make cash dividends, it shall
disclose the specific reasons and the next measures to be Not applicable
taken to enhance the returns level of investors:
Whether minority shareholders have the opportunity to fully
express their opinions and demands, and whether their Yes
legitimate rights and interests are fully protected:
Whether the conditions and procedures are compliant and
transparent if the cash dividend policy is adjusted or Yes
changed:
The Company is profitable during the reporting period and the profit available for distribution by the
parent company is positive, but no cash dividend distribution plan is proposed
□ Applicable√ Not applicable
Profit distribution and conversion of capital reserves into share capital during the reporting period
√Applicable □Not applicable
Number of bonus shares per 10 shares (shares) 0
Number of dividends per 10 shares (RMB) (including tax) 0.35
A total number of shares as the distribution basis(shares) 1,011,660,000
Cash dividend amount (yuan, including tax 35,408,100.00
Other means (such as repurchase of shares) cash
dividend amount (yuan)
Total cash dividend (RMB, including tax) 35,408,100.00
Distributable profit (yuan) 1,098,111,214.93
Proportion of cash dividend in the distributable profit 100%
Cash dividends this time
If the company's development stage is hard to be identified and there are major capital expenditure arrangements,
when the profit distribution is carried out, the proportion of cash dividends in this profit distribution should be at least
Detailed explanation of the plan for profit distribution or conversion of capital reserves into share capital
The Company's 2025 profit distribution plan was reviewed and approved at the 28th meeting of the 8th Board of
Directors held on March 18, 2026, and submitted to the 2025 annual general meeting for deliberation. Based on the
total share capital of 1,011,660,000 shares as of December 31, 2025, a cash dividend of RMB0.35 (tax inclusive) per 10
shares is to be distributed to the shareholders, with no bonus issue from either profit or capital reserves. This profit
distribution plan is subject to approval at the general meeting before implementation.
X. Implementation of the Company's equity incentive plan, employee
stock ownership plan (ESOP) or other employee incentives
□ Applicable√ Not applicable
During the reporting period, the Company had no equity incentive plan, employee stock ownership plan
or other employee incentive measures and their implementation.
XI. Construction and implementation of internal control system during
the reporting period
The Company has established a relatively complete and continuously effective internal
control system, and has carried out internal control evaluation in accordance with the
internal control matrix and documents. The Company has maintained effective internal
controls over financial reporting in all significant aspects according to the requirements of
the corporate internal control standards and relevant regulations. No significant
deficiencies in non-financial reporting internal controls have been identified, and no
factors have occurred that would impact the conclusions regarding the effectiveness of
internal controls. At the same time, the Company attaches great importance to the
regulation and steering role of the big supervision system. By holding joint supervision
meetings and carrying out key supervision and inspection, the Company has promoted
the standardization level improvement of relevant management work. No major violations
of regulations and disciplines have been found. In the future, the Company will continue
to develop internal control in a standardized manner and strengthen the supervision and
inspection of internal control in order to promote the healthy and sustainable
development of the Company.
period
□ Yes √ No
XII. Management and control of the Company's subsidiaries during the
reporting period
Problems
Company Consolidation Consolidation Progress of Follow-up
encountered in Solutions taken
name plan progress solution solution plan
consolidation
Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable
Abnormalities in the management and control of subsidiaries
□ Yes √ No
XIII. Evaluation Report on Internal Control or Audit Report on Internal
Control
Full-text disclosure date of the
March 20, 2026
Evaluation Report on Internal Control
Full-text disclosure index of the
Evaluation Report on Internal Control
Ratio of total assets of units included
in the evaluation scope to total assets
in the consolidated financial
statements of the Company
Ratio of operating revenue of units
included in the evaluation scope to the
operating revenue of consolidated
financial statements of the Company
Defect identification criteria
Type Financial report Non-financial report
The qualitative criterion for the
recognition of defects of internal
control in the non-financial statements
mainly were the order of severity of
defect involving business nature, the
direct or potential negative influence
nature, the influence scope and other
The Company, based on the actual factors. Generally, the presence of the
situation, identifies the following following signs indicates that there
events or signs that may indicate the may be major or significant
presence of significant or material deficiencies in the non-financial report
deficiencies in financial reporting: (1) internal control: (1) lack of democratic
The directors, supervisors and senior decision-making procedures, such as
management were found to have lack of decision-making on major
fraudulent behavior. (2) The discovery issues, important appointments or
by the certified public accountant of a dismissals, significant project
material misstatement of a current investment decisions, use of large
Qualitative criteria
period's financial reports and the funds (Three Major and One Big)
failure of the internal controls to detect decision-making procedures; (2)
the misstatement during their unscientific decision-making
operation. (3) The supervision of the procedures, such as major decision-
Audit Committee under the Board and making errors resulting in significant
Internal Audit Service to the internal property losses for the Company; (3)
control is invalid. (4) The accounting serious violations of national laws and
personnel were without necessary regulations; (4) key management
qualities to complete the preparation personnel or important talents leaving
of financial statements. in large numbers; (5) frequent
negative media reports with a broad
impact; (6) failure to rectify the results
of internal control evaluation,
especially major or significant
deficiencies; (7) lack of systematic
control over important businesses or
systemic failure of systems.
Serious defects: the defects, or defect The quantitative criteria for defects of
group may lead to the financial results internal control in the non-financial
Quantitative criteria misstatement or potential losses more statements were mainly based on the
than 3% of net assets. Important amount of direct economic loss that
defects: the defects, or defect group may be caused, with reference to the
may lead to the financial results quantitative criteria for defects of
misstatement or potential losses that internal control in financial report of
is greater than 1% of net assets but no the Company.
more than 3% of net assets. General
defects: the defects, or defect group
may lead to the financial results
misstatement or potential losses no
more than 1% of net assets.
Number of major deficiencies in
financial reports
Number of major deficiencies in non-
financial report
Number of significant deficiencies in
financial report
Number of significant deficiencies in
non-financial report
√Applicable □Not applicable
Review opinion in the Audit Report on Internal Control
In our opinion, SPG has maintained effective internal control over financial reporting in all material respects, in
accordance with the Basic Standard for Enterprise Internal Control and relevant regulations on December 31, 2025.
Disclosure of the Audit Report on Internal Control Disclosed
Full-text disclosure date of the Audit Report on Internal
March 20, 2026
Control
Full-text disclosure index of the Audit Report on Internal Report on Internal Control disclosed on
Control www.cninfo.com.cn.
Opinion type of the Audit Report on Internal Control Standard and unqualified opinion
Whether there are major deficiencies in non-financial
No
reports
Whether the accounting firm issues an Audit Report on Internal Control with non-standard opinions
□ Yes √ No
Whether the Audit Report on Internal Control issued by the accounting firm is consistent with the opinion
of the self-evaluation report of the Board of Directors
√ Yes □ No
Whether a non-standard internal control audit opinion was issued during the reporting period or the
previous year
□ Yes √ No
XIV. Status of rectification of self-examination issues of special actions
on governance of listed companies
During the reporting period, the Company did not have any issues that needed rectification after self-
examination.
XV. Disclosure of Environmental Information
Whether the listed company and its main subsidiaries are included in the list of enterprises required to
disclose the environmental information by law
□ Yes √ No
XVI. Social responsibility
Adhering to the philosophy of "thinking of the source when drinking water", while
pursuing economic benefits, the Company proactively practiced its role as a state-owned
enterprise, fulfilled its social responsibility, and gave back to the society with practical
action. For details, please refer to the 2025 Environmental, Social and Corporate
Governance (ESG) Report disclosed on CNINFO (www.cninfo.com.cn).
XVII. Consolidation and Expansion of the Achievements of Poverty
Alleviation and Rural Revitalization
Paying close attention to rural development, the Company proactively implemented the
national targeted poverty alleviation action, and continuously carried out consumer
assistance and rural revitalisation tasks. For details, please refer to the 2025
Environmental, Social and Corporate Governance (ESG) Report disclosed on CNINFO
(www.cninfo.com.cn).
Section V Significant Events
I. Fulfillment of commitments
parties, acquirers, the Company and other related parties that have been
fulfilled within the reporting period and those that have not been fulfilled as of
the end of the reporting period
√Applicable □Not applicable
Party
Reason making Type Content Date Term Performance
commitment
To avoid The commitment
horizontal has been
competition, changed. For
Shenzhen relevant matters,
Investment please refer to
Holdings Co., the
Ltd. made such Announcement
a commitment: on the
For the Application of the
Company’s Company's
existing Controlling
business that Shareholder for
Other has horizontal Change of
Shenzhen Avoidance competition with Commitments on
commitments Before
Investment of ShenZhen September Avoiding
made to November
Holdings horizontal Properties & 10, 2021 Horizontal
minority 9, 2024
Co., Ltd. competition Resources Competitions
interests
Development (Announcement
(Group) Ltd., No.: 2024-035)
Shenzhen and the
Investment Announcement
Holdings Co., on the
Ltd. will, within Resolution of the
the scope Third
permitted by Extraordinary
laws and General Meeting
regulations, of 2024
timely launch (Announcement
one or several of No.: 2024-41)
the following disclosed by the
solutions that is Company on
practically September 30
feasible, and and October 19,
complete the 2024
implementation respectively.
of the relevant
solution(s)
before 9
November 2024
to solve the
existing
horizontal
competition
problem: (1)
Solve the
horizontal
competition
between the two
through asset
sales or asset
replacement; (2)
Solve the
horizontal
competition
between the two
through equity
transfer; (3)
Take other
measures that
can effectively
solve the
problem of
horizontal
competition.
Above
commitment
came into force
upon the review
and approval on
the
shareholders’
meeting of
ShenZhen
Properties &
Resources
Development
(Group) Ltd.
(dated 27
September
industry
competition
between SZPRD
and SPG. For
Other the existing
commitments businesses of Before
Shenzhen September
made to November In performance
Property 26, 2024
minority 9, 2026
interests Management
that are in
competition with
SPG, SIHC will
initiate one or
more practically
operable
solutions within
the scope
allowed by laws
and regulations
and complete
the
implementation
of related
solutions by 9
November 2026,
to resolve the
existing
horizontal
competition
issue: (1) Solve
the horizontal
competition
through asset
sales or asset
swaps; (2) Solve
the horizontal
competition
through equity
transfers, (3)
Other measures
that can
effectively
address the
horizontal
competition.
commitments to
avoid horizontal
competition. As
the controlling
shareholder of
the listed
company and
during the
period when the
listed company
is listed on the As a
Shenzhen Stock controlling
Exchange, shareholder
companies, of a publicly
Other enterprises, and listed
commitments economic company
organizations September
made to during its In performance
minority controlled or 26, 2024 listing
interests actually period on
controlled by the
SIHC (excluding Shenzhen
enterprises Stock
controlled by the Exchange
listed company,
collectively
referred to as
"subsidiaries")
will not engage
in business
directly
competitive with
the listed
company in new
business fields
other than those
where there is
existing
horizontal
competition.
SIHC commits
not to seek
unfair benefits
through its
status as the
controlling
shareholder of
the listed
company,
thereby harming
the rights and
interests of the
listed company
and its
shareholders. In
case of violation
of the above
commitments,
SIHC will bear
the
corresponding
legal
responsibilities,
including but not
limited to
compensation
for all losses
caused to the
listed company.
Whether the
commitment
Yes
is fulfilled on
time
If the
commitments
are not
fulfilled within
the time limit,
the specific
reasons for
Not applicable
the
unfinished
performance
and the next
work plan
shall be
specified
reporting period is still in the profit forecast period, the Company shall explain
that the assets or projects have met the original profit forecast and the reasons
□ Applicable√ Not applicable
□ Applicable√ Not applicable
II. Non-operational occupation of funds by the controlling shareholders
and other related parties of the listed company
□ Applicable√ Not applicable
During the reporting period, there were no non-operational funds occupied by the controlling
shareholders and other related parties for the listed company.
III. Illegal external guarantees
□ Applicable√ Not applicable
The Company had no illegal external guarantee during the reporting period.
IV. Explanation of the Board of Directors on the latest "modified report"
□ Applicable√ Not applicable
V. Explanations Given by the Board of Directors and the Independent
Directors (if any) Regarding the Independent Auditor's “Modified
Opinion” on the Financial Statements of the Reporting Period
□ Applicable√ Not applicable
VI. Explanation of the accounting policies, changes in accounting
estimates or corrections of significant accounting errors compared to
the financial report of the previous year
□ Applicable√ Not applicable
During the reporting period, the Company had no accounting policies, changes in accounting estimates
or corrections of significant accounting errors.
VII. Explanation of changes in the scope of consolidated statements
compared to the financial report of the previous year
√Applicable □Not applicable
Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd. was taken over by a bankruptcy administrator
for bankruptcy and liquidation on November 30, 2025, and thus it is no longer included in the scope of
consolidation.
VIII. Appointment and dismissal of the accounting firm
Currently appointed accounting firm
Pan-China Certified Public Accountants (Special General
Name of domestic accounting firm
Partnership)
Remuneration of domestic accounting firm (RMB10,000) 72
Number of consecutive years of audit services provided by
domestic accounting firm
Name of certified public accountants of the domestic
Wang Huansen, Lin Zhenhua
accounting firm
Number of consecutive years of audit services provided by
certified public accountants of domestic accounting firm
Whether to change the accounting firm in the current period
□ Yes √ No
Engagement of internal control audit accounting firm, financial adviser or sponsor
√Applicable □Not applicable
During the Reporting Period, the Company engaged Pan-China Certified Public Accountant (LLP) to
provide internal control and audit services for the Company at a service fee of RMB210,000.
IX. Delisting after the disclosure of the annual report
□ Applicable√ Not applicable
X. Matters related to bankruptcy and reorganization
□ Applicable√ Not applicable
During the reporting period, the Company had no bankruptcy restructuring related matters.
XI. Significant litigation and arbitration
√Applicable □Not applicable
Basic
Amount Whether Results and Execution of
information Proceedings
involved estimated influence of litigation Date of Disclosure
of litigation of litigation
(RMB10,00 liabilities litigation (arbitration) disclosure index
(arbitration (arbitration)
)
Huizhou
Mingxiang
Economic
As Jianbang Group
Information
is incapable of The 2025
Consulting
paying the Semi-Annual
Co., Ltd.,
commercial bills Report
Huizhou
due in January (Announcem
Huiyang
Hongfa
RMB177,151,400, 2025-023)
Industry &
Huizhou Mingxiang and the
This Trade Co.,
Economic Announceme
enforcement Ltd., and
Information nt on the
procedure is Huizhou
Consulting Co., Court's
terminated. Jinlongsheng
Ltd., Huizhou Ruling to
Jianbang Industrial
Huiyang Hongfa Accept the
Company has Co., Ltd.
Industry & Trade Bankruptcy
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Co., Ltd. and and
bill dispute bankruptcy for execution October 30,
and to the 2025
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liquidation Huizhou
Industrial Co., Ltd. against a
proceedings, Intermediate
brought a lawsuit Controlling
and creditors People's
on the bill dispute Subsidiary
may file Court. In
to the People’s and
claims with February
Court of Huiyang Appointment
the 2026, the
District. The of an
administrator. Huizhou
Huiyang District Administrator
Intermediate
Court ruled at first (Announcem
People's
instance in March ent No.:
Court issued
an
Group should pay disclosed on
enforcement
the acceptance bill cninfo.com.c
order, ruling
amount and n
to terminate
interest.
this
enforcement
procedure.
The In January 2024, On The Litigation
Loan enforcement the Company December 2, Matters
contract 39,568.85 No procedure is received a civil 2025, the May 13, 2025 (Announcem
Dispute terminated. judgment of the Company ent No.:
Jianbang first instance received the 2025-013)
Company has issued by the Enforcement and the
entered the Shenzhen Luohu Order, ruling Announceme
bankruptcy District People's to terminate nt on the
and Court. The the Court's
liquidation Company won the enforcement Ruling to
proceedings, case and has procedure. Accept the
and filed applied to the Given that Bankruptcy
claims with Luohu District Jianbang and
the People's Court of Company Liquidation
administrator. Shenzhen for has entered Application
compulsory the against a
execution. bankruptcy Controlling
and Subsidiary
liquidation and
proceedings, Appointment
the Company of an
has filed Administrator
claims with (Announcem
the ent No.:
administrator. 2025-030)
disclosed on
cninfo.com.c
n
In the second
instance.
On January 8,
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Pearl River
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venture and filed Announceme
the first instance
and claims with nt on
supported some of
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our company's In the second December
e real 74,357.5 No administrator. Matters (No.:
litigation claims. instance. 8,2023
estate Guangzhou 2023-048) on
On January 22,
developme Bopi and www.cninfo.
nt contract Shenzhen com.cn
filed an appeal
disputes Qijin are
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in the second
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liquidation
teams.
Jianbang In October 2024, Given that The Litigation
Company the civil ruling for Jianbang Matters
and the second Company (Announcem
Evergrande instance of this and ent No.:
Pearl River case was received, Evergrande 2025-016)
Loan Delta and the case was Pearl River and the
contract Company treated as a Delta June 12, Announceme
have both withdrawal of the Company 2025 nt on the
Dispute
entered lawsuit. The first- have both Court's
bankruptcy instance judgment entered Ruling to
and has taken effect, bankruptcy Accept the
liquidation and the Company and Bankruptcy
proceedings, has won the case. liquidation and
and claims The Company proceedings, Liquidation
have been applied to the court the Company Application
filed with their for compulsory has filed against a
respective enforcement in claims with Controlling
administrator January 2025. their Subsidiary
s. respective and
Guangzhou administrator Appointment
Bopi and s. of an
Shenzhen Meanwhile, Administrator
Qijin are Guangzhou (Announcem
undergoing Bopi and ent No.:
liquidation Shenzhen 2025-030)
and Qijin are disclosed on
deregistration undergoing cninfo.com.c
, and claims liquidation n
have been and
filed with their deregistration
respective , and the
liquidation Company
teams. has also filed
claims with
their
respective
liquidation
teams.
On
December 8,
Company
submitted its
claim
declaration The
On October 27, materials to Announceme
Company received administrator Court's
the Civil Ruling of Jianbang Ruling to
and the Decision Company Accept the
from the Huizhou based on the Bankruptcy
Under
Intermediate claim amount and
bankruptcy
People's Court. confirmed by Liquidation
and
Application The court ruled to the effective Application
Under liquidation,
for accept the civil against a
review of the October 30,
bankruptcy No bankruptcy and judgment, the Controlling
claims and administrator 2025
and liquidation confirmation Subsidiary
debts has taken
liquidation application filed by letter of and
over
Zhongshan claims and Appointment
Jianbang
Shengtang debts, and of an
Company.
Advertising Co., transfer Administrator
Ltd. against vouchers. (Announcem
Jianbang The ent No.:
Company and Company 2025-030)
appointed an actively disclosed on
administrator. participated cninfo.com.c
in creditors' n
meetings to
exercise its
rights as a
creditor in
accordance
with the law.
XII. Punishment and rectification
□ Applicable√ Not applicable
There was no punishment or rectification during the reporting period.
XIII. Integrity status of the Company and its controlling shareholders
and actual owner
□ Applicable√ Not applicable
XIV. Major related party transactions
□ Applicable√ Not applicable
During the reporting period, the Company had no related party transactions related to daily operations.
equity
□ Applicable√ Not applicable
During the reporting period, the Company had no related party transactions arising from the acquisition
or sale of assets or equity.
□ Applicable√ Not applicable
During the reporting period, the Company had no related party transactions arising from joint external
investment.
□ Applicable√ Not applicable
During the reporting period, the Company had no related debt transactions.
□ Applicable√ Not applicable
There was no deposit, loan, credit or other financial business between the Company and the finance
companies with related relationship and their related parties.
related parties
□ Applicable√ Not applicable
There was no deposit, loan, credit or other financial business between the Company's holding finance
companies and its related parties.
□ Applicable√ Not applicable
The Company had no other major related party transactions during the reporting period.
XV. Major contracts and their performance
(1) Custody
□ Applicable√ Not applicable
During the reporting period, the Company had nothing under custody.
(2) Contracting
□ Applicable√ Not applicable
During the reporting period, the Company had no contracting.
(3) Leases
□ Applicable√ Not applicable
During the reporting period, the Company had no leases.
□ Applicable√ Not applicable
The Company had no material guarantees during the reporting period.
(1) Entrusted wealth management
√Applicable □Not applicable
Overview of entrusted wealth management during the reporting period
Unit: RMB10,000
Balance of entrusted wealth
Delinquent uncollected
Product category Risk characteristics management during the
amount
reporting period
Money market funds - low
Others 105,025.61 0
risk
Details of high-risk entrusted wealth management where the Company, as a single client, entrusts a
financial institution for asset management, or invests in products with low safety and poor liquidity
□ Applicable√ Not applicable
(2) Entrusted loans
□ Applicable√ Not applicable
There were no entrusted loans of the Company during the reporting period.
□ Applicable√ Not applicable
There were no other major contracts of the Company during the reporting period.
XVI. Use of Raised Funds
□ Applicable√ Not applicable
The Company had no use of funds raised during the reporting period.
XVII. Notes to Other Major Matters
□ Applicable√ Not applicable
The Company had no other major matters to be explained during the reporting period.
XVIII. Major Matters of the Company's Subsidiaries
□ Applicable√ Not applicable
Section VI. Share Changes and Shareholder
Information
I. Changes in shares
Unit: shares
Before the change Increase or decrease in this change (+, -) After the change
Conversio
New n of
Bonus
Number Ratio shares provident Others Sub-total Number Ratio
issue
issued fund into
shares
I. Shares
with
restrictive 0 0.00% 0 0 0 0 0 0 0.00%
conditions
for sales
owned 0 0.00% 0 0 0 0 0 0 0.00%
shares
held by
the state-
owned
legal
persons
domestic 0 0.00% 0 0 0 0 0 0 0.00%
holdings
Including:
shares
held by
domestic
legal
persons
Shares
held by
domestic 0 0.00% 0 0 0 0 0 0 0.00%
natural
persons
shareholdi 0 0.00% 0 0 0 0 0 0 0.00%
ng
Including:
shares
held by
overseas
legal
persons
Shares
held by
overseas 0 0.00% 0 0 0 0 0 0 0.00%
natural
persons
II. Shares 1,011,660, 100.00% 0 0 0 0 0 1,011,660, 100.00%
without 000 000
restrictive
conditions
for sales
ordinary 88.14% 0 0 0 0 0 88.14%
shares
shares
listed 11.86% 0 0 0 0 0 11.86%
domestica
lly
shares
listed
overseas
III. Total
number of 100.00% 0 0 0 0 0 100.00%
shares
Reasons for changes in shares
□ Applicable√ Not applicable
Approval of changes in shares
□ Applicable√ Not applicable
Transfer of changes in shares
□ Applicable√ Not applicable
Effect of changes in shares on financial indicators such as basic earnings per share and diluted
earnings per share in the latest year and the latest period, and net assets per share attributable to the
Company's ordinary shareholders
□ Applicable√ Not applicable
Other contents deemed necessary by the Company or required by the securities regulators to be
disclosed
□ Applicable√ Not applicable
□ Applicable√ Not applicable
II. Issuance and listing of securities
period
□ Applicable√ Not applicable
Company, and changes in the structure of assets and liabilities of the
Company
□ Applicable√ Not applicable
□ Applicable√ Not applicable
III. Shareholders and actual owner
Unit: shares
Total
numb
er of
ordin
ary
share
Total
holde
number of
rs at
preferred
Total the Total number of preferred
shareholder
number of end shareholders whose
s with
ordinary of the voting right have been
restoration
shareholder previ restored at the end of the
s at the end ous previous month before
rights at the
of the mont the disclosure date of the
end of the
reporting h annual report (if any)
reporting
period. befor (see Note 8)
period (if
e the
any) (see
disclo
Note 8)
sure
date
of the
annu
al
report
Shareholdings of shareholders holding more than 5% or the top 10 shareholders (excluding shares lent through
refinancing)
Number of Pledge, marking or
Number of Number of
shares held Changes freezing
shares held shares held
Name of Nature of Sharehol at the end during the
under without
shareholder shareholder ding ratio of the reporting Share
restricted restrictions Number
reporting period status
conditions on sales
period
Shenzhen
Investment State-owned 554,247,28 - 554,247,28 Not
Holdings legal person 0 10,106,558 0 applicable
Co., Ltd.
Shenzhen
State-
owned Domestic non-
Not
Equity state-owned 6.35% 64,288,426 0 0 64,288,426 0
applicable
Operation legal person
Manageme
nt Co., Ltd.
Yang Domestic
Jianmin natural person
Hong Kong
Securities
Clearing Overseas Not
Company legal person applicable
Ltd.
(HKSCC)
Wang Domestic Not
Yulan natural person applicable
Zhang Domestic Not
Xiujuan natural person applicable
Domestic Not
He Qiao 0.39% 3,968,100 176,200 0 3,968,100 0
natural person applicable
Wang Domestic Not
Jinghua natural person applicable
Wang Domestic Not
Zhengying natural person applicable
Zhang Domestic Not
Tianxue natural person applicable
Strategic investors or general
legal person becoming the top
placement of new shares (if
any) (see Note 3)
Among the top 10 shareholders of the Company, Shenzhen State-owned Equity
Notes to shareholders' related Management Co., Ltd. is a wholly-owned subsidiary of Shenzhen Investment Holdings
relationship or persons acting Co., Ltd. The Company does not know whether there exists associated relationship
in concert among the other shareholders, or whether they are persons acting in concert as
prescribed in the Administrative Measures for the Acquisition of Listed Companies.
Explanation of the above
shareholders' involvement in
entrusting/being entrusted Not applicable
voting rights and waiver of
voting rights
Special explanation for the
existence of repurchase
accounts among the top 10 Not applicable
shareholders (if any) (see Note
Shareholdings of the top 10 shareholders without restrictions on sales (excluding shares lent through refinancing and
shares locked by senior management)
Number of shares held without restrictions on Type of shares
Name of shareholder
sales at the end of the reporting period Type of shares Number
Shenzhen Investment Holdings RMB ordinary
Co., Ltd. shares
Shenzhen State-owned Equity
RMB ordinary
Operation Management Co., 64,288,426 64,288,426
shares
Ltd.
RMB ordinary
Yang Jianmin 10,287,700 10,287,700
shares
Hong Kong Securities Clearing RMB ordinary
Company Ltd. (HKSCC) shares
RMB ordinary
Wang Yulan 6,228,591 6,228,591
shares
RMB ordinary
Zhang Xiujuan 4,696,600 4,696,600
shares
RMB ordinary
He Qiao 3,968,100 3,805,700
shares
Domestically
He Qiao 3,968,100 listed foreign 162,400
shares
Domestically
Wang Jinghua 3,100,000 listed foreign 3,100,000
shares
RMB ordinary
Wang Zhengying 2,961,900 2,961,900
shares
Zhang Tianxue 2,830,283 Domestically 2,830,283
listed foreign
shares
Explanation of related
relationship or concerted
actions among the top 10
Among the top 10 unrestricted public shareholders of the Company, Shenzhen State-owned
shareholders with
Equity Management Co., Ltd. is a wholly-owned subsidiary of Shenzhen Investment
unrestricted tradable
Holdings Co., Ltd. The Company does not know whether there exists associated relationship
shares, and between the
among the other shareholders, or whether they are persons acting in concert as prescribed
top 10 shareholders with
in the Administrative Measures for the Acquisition of Listed Companies.
unrestricted tradable
shares and the top 10
shareholders
Explanation of the top 10
Among the top 10 shareholders, the shareholder ranked 3rd holds 6,180,200 shares in a
ordinary shareholders'
credit securities account, the 6th ranked shareholder holds 4,600,000 shares in a credit
participation in margin
securities account, the 7th ranked shareholder holds 3,112,986 shares in a credit securities
financing and securities
account, and the 9th ranked shareholder holds 2,961,900 shares in a credit securities
lending business (if any)
account.
(see Note 4)
Participation of shareholders holding more than 5% of the shares, the top 10 shareholders and the top
□ Applicable√ Not applicable
Changes of the top 10 shareholders and the top 10 shareholders of unrestricted tradable shares
compared with the previous period due to refinancing lending/repayment
□ Applicable√ Not applicable
Whether the Company's top 10 ordinary shareholders and the top 10 ordinary shareholders without
restrictive condition for sales conduct any agreed repurchase transactions during the reporting period
□ Yes √ No
The Company's top 10 ordinary shareholders, and top 10 ordinary shareholders without restrictive
condition for sales did not conduct any agreed repurchase transaction during the reporting period.
Nature of controlling shareholders: local state-owned holding
Type of controlling shareholders: legal person
Legal
Name of controlling
representative/person Date of establishment Organization code Main business
shareholder
in charge
Investment in equities
on behalf of the
government and
management of those
investments;
Shenzhen Investment development and
He Jianfeng October 13, 2004 914403007675664218
Holdings Co., Ltd. operation of
government-allocated
land; and investment
in and provision of
services for strategic
emerging industries
Equities of other SZPRD A (000011) holds 303.14 million shares, with a shareholding ratio of 50.87%;
domestic and STHC (000045) holds 234.07 million shares, with a shareholding ratio of 46.21%;
overseas listed
Ping An Insurance (601318) holds 962.72 million shares, with a shareholding ratio of 5.32%;
companies controlled
and invested by the Guosen Securities (002736) holds 3,223.11 million shares, with a shareholding ratio of 31.47%;
controlling Guotai Haitong Securities (601211) holds 609.43 million A-shares and 103.37 million H-shares,
shareholder during the with a shareholding ratio of 4.04%;
reporting period Telling Telecommunication Holding (000829) holds 195.03 million shares, with a shareholding
ratio of 19.03%;
Shenzhen International (00152) holds 1,059.08 million shares, with a shareholding ratio of
Leaguer (002243) holds 606.66 million shares, with a shareholding ratio of 50.11%;
Infinova (002528) holds 315.83 million shares, with a shareholding ratio of 26.35%;
Eternal Asia (002183) holds 601.67 million shares, with a shareholding ratio of 23.17%;
Shenzhen Water Planning and Design Institute (301038) holds 83.66 million shares, with a
shareholding ratio of 37.50%;
Shenzhen Energy (000027) holds 6.77 million shares, with a shareholding ratio of 0.14%;
Bank of Communications (601328) holds 9.52 million shares, with a shareholding ratio of
CECEP Tech and Ecology & Environment (300197) holds 113.98 million share, with a
shareholding ratio of 3.66%;
China Vanke (02202) holds 77.27 million shares, with a shareholding ratio of 0.66%;
Shenzhen SEG (000058) holds 696.16mn shares, with a shareholding ratio of 56.54%;
Shenzhen SDG Information (000070) holds 325.72 million shares, with a shareholding ratio of
Shenzhen Tellus Holding (000025) holds 211.59 million shares, with a shareholding ratio of
Shenzhen SDG Service (300917) holds 80.74mn shares, with a shareholding ratio of 47.78%;
Microgate Technology (300319) holds 72 million shares, with a shareholding ratio of 8.11%;
China Merchants Shekou Industrial Zone Holdings (001979) holds 456.12 million shares, with a
shareholding ratio of 5.03%.
Changes in controlling shareholders during the reporting period
□ Applicable√ Not applicable
There was no change in the controlling shareholder of the Company during the reporting period.
Nature of actual owner: local state-owned assets management agency
Type of actual owner: legal person
Legal
Name of actual owner representative/person Date of establishment Organization code Main business
in charge
Perform the duties of
the contributor on
State-owned Assets
behalf of the state,
Supervision and
and supervise and
Administration
Yang Jun April 02, 2004 11440300K317280672 manage state-owned
Commission of
assets authorized for
Shenzhen Municipal
supervision in
People's Government
accordance with the
law.
Equity of other
domestic and
overseas listed In addition to the Company controlling shareholder - Shenzhen Investment Holding Co., Ltd.,
companies controlled other domestic and overseas listed companies whose equity directly held by the actual
by the actual owner controllers did not rank among the top ten shareholders of the Company.
during the reporting
period
Changes in actual owner during the reporting period
□ Applicable√ Not applicable
There was no change in the actual owner of the Company during the reporting period.
Chart for the property and controlling relationships between the Company and the actual owner
The actual owner controls the Company by way of trust or other asset management methods
□ Applicable√ Not applicable
the largest shareholder of the Company and their persons acting in concert
accounted for 80% of the number of shares held by them
□ Applicable√ Not applicable
□ Applicable√ Not applicable
reorganization parties and other committed entities
□ Applicable√ Not applicable
IV. Specific implementation of share repurchase during the reporting
period
Implementation progress of share repurchase
□ Applicable√ Not applicable
Implementation progress of reducing repurchase shares by means of centralized bidding transaction
□ Applicable√ Not applicable
V. Preferred Shares
□ Applicable√ Not applicable
During the reporting period, the Company had no preferred shares.
Section VII Bonds
□ Applicable√ Not applicable
Section VIII Financial Statements
I. Audit report
Type of audit opinion Standard and unqualified opinion
Signing date of the audit report March 18, 2026
Pan-China Certified Public Accountants (Special General
Name of audit institution
Partnership)
Audit report No. PCCPAAR [2026] No. 7-34
Name of certified public accountant Wang Huansen, Lin Zhenhua
Main Body of the Audit Report
Auditor’s Report
PCCPAAR [2026] No. 7-34
To the Shareholders of Shenzhen Special Economic Zone Real Estate & Properties
(Group) Co., Ltd.:
I. Audit Opinion
We have audited the financial statements of Shenzhen Special Economic Zone Real
Estate & Properties (Group) Co., Ltd. (the “Company”), which comprise the
consolidated and parent company balance sheets as at December 31, 2025, the
consolidated and parent company income statements, consolidated and parent
company cash flow statements, and consolidated and parent company statements of
changes in equity for the year then ended, as well as notes to financial statements.
In our opinion, the accompanying financial statements present fairly, in all material
respects, the financial position of the Company as at December 31, 2025, and its
financial performance and its cash flows for the year then ended in accordance with
China Accounting Standards for Business Enterprises.
II. Basis for Audit Opinion
We conducted our audit in accordance with China Standards on Auditing. Our
responsibilities under those standards are further described in the Certified Public
Accountant’s Responsibilities for the Audit of the Financial Statements section of our
report. We are independent of the Company in accordance with the “Chinese Certified
Public Accountant Independence Standard No. 1 – Independence Requirements for
Financial Statement Audit and Review Engagements” and the China Code of Ethics
for Certified Public Accountants, and we have fulfilled other ethical responsibilities.
In conducting our audit, we have complied with the independence requirements
applicable to audits of public interest entities. 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, were of most
significance in our audit of the financial statements of the current period. These
matters were addressed in the context of our audit of the financial statements as a
whole, and in forming our opinion thereon, and we do not express a separate opinion
on these matters.
(I) Revenue recognition
Please refer to section III (XXV) and V (II) 1 of notes to the financial statements for
details.
The Company is mainly engaged in real estate sales, engineering construction, and
property leasing and other businesses. In 2025, the operating revenue amounted to
sales, accounting for 89.33%, and 81,299,490.77 yuan was from engineering
construction, accounting for 5.48%.
As operating revenue is one of the key performance indicators of the Company, there
might be inherent risks that the Company’s management (the “Management”) adopts
inappropriate revenue recognition to achieve specific goals or expectations, and
revenue recognition involves significant judgment of the Management, we have
identified revenue recognition as a key audit matter.
Our main audit procedures for revenue recognition are as follows:
(1) We obtained understandings of key internal controls related to revenue recognition,
assessed the design of these controls, determined whether they had been executed, and
tested the effectiveness of the operation;
(2) We checked main housing sales contracts and lease contracts, and assessed
whether the revenue recognition method was appropriate;
(3) We performed analysis procedure on operating revenue and gross margin by
month, business type, etc., so as to identify whether there are significant or abnormal
fluctuations and find out the reason;
(4) We checked supporting documents related to selected items, including housing
sales contracts, housing delivery notices, lease contracts, sales invoices, etc.
(5) We selected items to check the documents including cost budget, purchase
contracts, subcontract agreements, etc. which were taken as the basis for estimating
total cost, so as to test whether the performance progress and the revenue recognized
based on performance progress were accurately measured by the Management, and
evaluated the reasonableness of the performance progress determined by the
Management in combination with documents including supervision reports, progress
confirmation sheets, customer statements, as well as the on-site observation on
inventory counting;
(6) We performed confirmation procedures on sales amount of selected items in
combination with confirmation procedure of accounts receivable and contract assets;
(7) We performed cut-off tests to check whether the revenue was recognized in the
appropriate period; and
(8) We checked whether information related to operating revenue had been presented
appropriately in the financial statements.
(II) Net realizable value of inventories
Please refer to section III (XIII) and V (I) 7 of notes to the financial statements for
details.
As of December 31, 2025, the book balance of inventories amounted to
yuan, and the carrying amount amounted to 1,099,359,619.25 yuan.
Inventories are measured at the lower of cost and net realizable value. The net
realizable value is determined by the Management based on the amount of the
estimated selling price less the cost to be incurred upon completion, estimated selling
expenses and relevant taxes and surcharges. As the amount of inventories is
significant and determination of net realizable value involves significant judgment of
the Management, we have identified net realizable value of inventories as a key audit
matter.
Our main audit procedures for net realizable value of inventories are as follows:
(1) We obtained understandings of key internal controls related to net realizable value
of inventories, assessed the design of these controls, determined whether they had
been executed, and tested the effectiveness of the operation;
(2) We reviewed the outcome of the Management’s previous estimates on the net
realizable value or their subsequent re-estimations;
(3) We selected items to assess the reasonableness of the estimated selling price, and
reviewed whether the estimated selling price was consistent with sales contract price,
market selling price, etc.;
(4) We assessed the reasonableness of estimation on cost to be incurred upon
completion, selling expenses and relevant taxes and surcharges made by the
Management;
(5) We tested whether the calculation of net realizable value of inventories made by
the Management was accurate;
(6) We identified whether there existed situations such as projects with slow
development or sales progress, in combination with observation on inventory
counting, and assessed the reasonableness of estimations on net realizable value of
inventories made by the Management; and
(7) We checked whether information related to net realizable value of inventories had
been presented appropriately in the financial statements.
IV. Other Information
The Management is responsible for the other information. The other information
comprises the information included in the Company’s annual report, but does not
include the financial statements and our auditor’s report thereon.
Our 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 the financial statements, our responsibility is to read
the other information and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or our knowledge obtained in 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.
V. Responsibilities of the Management and Those Charged with Governance for
the Financial Statements
The Management is responsible for preparing and presenting fairly the financial
statements in accordance with China Accounting Standards for Business Enterprises,
as well as designing, implementing and maintaining internal control relevant to the
preparation of financial statements that are free from material misstatement, whether
due to fraud or error.
In preparing the financial statements, the Management is responsible for assessing the
Company’s ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless the
Management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s
financial reporting process.
VI. Certified Public Accountant’s Responsibilities for the Audit of the 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 auditor’s 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 China Standards on Auditing will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these
financial statements.
We exercise professional judgment and maintain professional skepticism throughout
the audit performed in accordance with China Standards on Auditing. We also:
(I) 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.
(II) Obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances.
(III) Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by the Management.
(IV) Conclude on the appropriateness of the Management’s use of the going concern
basis of accounting and, based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt on the
Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the
related disclosures in the financial statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor’s report. However, future events or conditions may cause the
Company to cease to continue as a going concern.
(V) Evaluate the overall presentation, structure and content of the financial statements,
and whether the financial statements represent the underlying transactions and events
in a manner that achieves fair presentation.
(VI) Obtain sufficient and appropriate audit evidence regarding the financial
information of the entities or business activities within the Company to express an
opinion on the financial statements. We are responsible for the direction, supervision
and performance of the group audit. We remain sole responsibility for our audit
opinion.
We communicate with those charged with governance regarding the planned audit
scope, time schedule and significant audit findings, including any deficiencies in
internal control of concern 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
the current period and are therefore the key audit matters. We describe these matters
in our auditor’s report unless law or regulation precludes public disclosure about the
matter or when, in extremely rare circumstances, we determine that a matter should
not be communicated in our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of such
communication.
Pan-China Certified PublicAccountants LLP Chinese Certified PublicAccountant: Wang Huansen
(Engagement Partner)
Hangzhou · China Chinese Certified PublicAccountant: Lin Zhenhua
Date of Report: March 18, 2026
The auditor’s report and the accompanying financial statements are English translations of the Chinese auditor’s
report and statutory financial statements prepared under accounting principles and practices generally accepted
in the People’s Republic of China. These financial statements are not intended to present the financial position and
financial performance and cash flows in accordance with accounting principles and practices generally accepted
in other countries and jurisdictions. In case the English version does not conform to the Chinese version, the
Chinese version prevails.
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
Consolidated balance sheet as at December 31, 2025
(Expressed in Renminbi Yuan)
Note
Assets Closing balance Beginning balance
No.
Current assets:
Cash and bank balances 1 284,686,525.04 529,242,725.36
Settlement funds
Loans to other banks
Held-for-trading financial assets 2 1,050,256,058.41 987,801,938.51
Derivative financial assets
Notes receivable 3 100,000.00
Accounts receivable 4 44,898,083.74 56,672,795.52
Receivables financing
Advances paid 5 31,588.45 1,201,106.21
Premiums receivable
Reinsurance accounts receivable
Reinsurance reserve receivable
Other receivables 6 747,900,491.52 7,438,040.83
Financial assets under reverse repo
Inventories 7 1,099,359,619.25 3,636,840,229.34
Contract assets 8 29,035,256.28 30,888,723.09
Assets held for sale
Non-current assets due within one year
Other current assets 9 66,133,465.24 154,192,023.86
Total current assets 3,322,301,087.93 5,404,377,582.72
Non-current assets:
Loans and advances
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 10
Other equity instrument investments 11 14,571,511.81 14,697,341.18
Other non-current financial assets
Investment property 12 522,634,659.17 515,925,116.54
Fixed assets 13 14,949,900.45 17,489,207.57
Construction in progress 14 571,822.67
Productive biological assets
Oil & gas assets
Right-of-use assets
Intangible assets 15
Development expenditures
Goodwill
Long-term prepayments 16 1,615,683.92 1,719,911.72
Deferred tax assets 17 6,138,319.62 33,571,496.94
Other non-current assets
Total non-current assets 560,481,897.64 583,403,073.95
Total assets 3,882,782,985.57 5,987,780,656.67
Legal representative:Chen Ming Officer in charge of accounting:Wang Jianfei Head of accounting department: Zhou Hongpu
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
Consolidated balance sheet as at December 31, 2025 (continued)
(Expressed in Renminbi Yuan)
Note
Liabilities & Equity
No.
Closing balance Beginning balance
Current liabilities:
Short-term borrowings 19 50,000.00 1,563,000.00
Central bank loans
Loans from other banks
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 20 171,738,333.04 464,488,982.30
Advances received 21 722,042.14 1,398,988.78
Contract liabilities 22 28,400,659.20 1,298,146,232.35
Financial liabilities under repo
Absorbing deposit and interbank deposit
Deposits for agency security transaction
Deposits for agency security underwriting
Employee benefits payable 23 32,757,342.88 22,499,368.29
Taxes and rates payable 24 26,922,082.58 27,554,810.01
Other payables 25 144,280,409.16 561,016,653.17
Handling fees and commissions payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one year 26 33,888,347.83
Other current liabilities 27 7,565,002.87 118,304,068.47
Total current liabilities 412,435,871.87 2,528,860,451.20
Non-current liabilities:
Insurance policy reserve
Long-term borrowings 28 62,273,677.82
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 29
Long-term payables
Long-term employee benefits payable
Provisions
Deferred income
Deferred tax liabilities 17 867,914.50 1,259,459.98
Other non-current liabilities
Total non-current liabilities 867,914.50 63,533,137.80
Total liabilities 413,303,786.37 2,592,393,589.00
Equity:
Share capital 29 1,011,660,000.00 1,011,660,000.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 30 978,244,910.11 978,244,910.11
Less: Treasury shares
Other comprehensive income 31 23,315,115.52 23,060,416.31
Special reserve
Surplus reserve 32 275,253,729.26 275,253,729.26
General risk reserve
Undistributed profit 33 1,323,849,441.49 1,223,893,437.74
Total equity attributable to the parent company 3,612,323,196.38 3,512,112,493.42
Non-controlling interest -142,843,997.18 -116,725,425.75
Total equity 3,469,479,199.20 3,395,387,067.67
Total liabilities & equity 3,882,782,985.57 5,987,780,656.67
Legal representative:Chen Ming Officer in charge of accounting:Wang Jianfei Head of accounting department: Zhou Hongpu
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
Parent company balance sheet as at December 31, 2025
(Expressed in Renminbi Yuan)
Note
Assets Closing balance Beginning balance
No.
Current assets:
Cash and bank balances 69,884,281.83 83,656,432.61
Held-for-trading financial assets 987,801,938.51
Derivative financial assets
Notes receivable
Accounts receivable 1 4,843,552.76 7,200,138.91
Receivables financing
Advances paid
Other receivables 2 1,880,427,908.13 1,751,551,390.53
Inventories 312,474.69 315,900.69
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 1,294,922.05 1,037,878.95
Total current assets 1,956,763,139.46 2,831,563,680.20
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 3 1,132,181,561.85 1,160,766,664.14
Other equity instrument investments 14,571,511.81 14,697,341.18
Other non-current financial assets
Investment property 387,434,080.02 409,742,121.37
Fixed assets 9,186,628.06 10,736,433.64
Construction in progress 571,822.67
Productive biological assets
Oil & gas assets
Right-of-use assets
Intangible assets
Development expenditures
Goodwill
Long-term prepayments 1,209,606.83 770,175.82
Deferred tax assets 469,690.21
Other non-current assets
Total non-current assets 1,545,155,211.24 1,597,182,426.36
Total assets 3,501,918,350.70 4,428,746,106.56
Legal representative:Chen Ming Officer in charge of accounting:Wang Jianfei Head of accounting department: Zhou Hongpu
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
Parent company balance sheet as at December 31, 2025 (continued)
(Expressed in Renminbi Yuan)
Note
Liabilities & Equity Closing balance Beginning balance
No.
Current liabilities:
Short-term borrowings
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 6,692,455.48 13,684,223.19
Advances received
Contract liabilities 94,227.61 95,842.85
Employee benefits payable 21,771,697.06 15,935,363.87
Taxes and rates payable 1,161,124.78 12,314,051.54
Other payables 142,790,324.11 854,613,311.67
Liabilities held for sale
Non-current liabilities due within one year 374,768.60
Other current liabilities 4,711.39 4,792.15
Total current liabilities 172,514,540.43 897,022,353.87
Non-current liabilities:
Long-term borrowings 62,273,677.82
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee benefits payable
Provisions
Deferred income
Deferred tax liabilities 867,914.50 1,259,459.98
Other non-current liabilities
Total non-current liabilities 867,914.50 63,533,137.80
Total liabilities 173,382,454.93 960,555,491.67
Equity:
Share capital 1,011,660,000.00 1,011,660,000.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 964,711,931.13 964,711,931.13
Less: Treasury shares
Other comprehensive income 1,928,633.86 2,023,005.89
Special reserve
Surplus reserve 252,124,115.85 252,124,115.85
Undistributed profit 1,098,111,214.93 1,237,671,562.02
Total equity 3,328,535,895.77 3,468,190,614.89
Total liabilities & equity 3,501,918,350.70 4,428,746,106.56
Legal representative:Chen Ming Officer in charge of accounting:Wang Jianfei Head of accounting department: Zhou Hongpu
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
Consolidated income statement for the year ended December 31, 2025
(Expressed in Renminbi Yuan)
Note
Items Current period cumulative Preceding period comparative
No.
I. Total operating revenue 1,482,872,299.36 407,022,191.44
Including: Operating revenue 1 1,482,872,299.36 407,022,191.44
Interest income
Premiums earned
Revenue from handling fees and commissions
II. Total operating cost 1,183,752,194.32 426,847,390.83
Including: Operating cost 1 1,069,812,444.74 332,325,650.30
Interest expenses
Handling fees and commissions
Surrender value
Net payment of insurance claims
Net provision of insurance policy reserve
Premium bonus expenditures
Reinsurance expenses
Taxes and surcharges 2 21,879,412.16 16,741,282.71
Selling expenses 3 20,775,223.41 13,164,672.93
Administrative expenses 4 72,505,249.03 70,118,532.01
R&D expenses
Financial expenses 5 -1,220,135.02 -5,502,747.12
Including: Interest expenses 3,760,510.21 2,586,822.94
Interest income 3,829,111.01 7,998,718.28
Add: Other income 6 31,652.46 842,206.39
Investment income (or less: losses) 7 -150,943,612.67 1,346,463.59
Including: Investment income from associates and joint ventures
Gains from derecognition of financial assets at amortized cost
Gains on foreign exchange (or less: losses)
Gains on net exposure to hedging risk (or less: losses)
Gains on changes in fair value (or less: losses) 8 16,621,332.22 18,461,736.59
Credit impairment loss 9 -2,086,760.74 -8,953,080.52
Assets impairment loss 10 -2,407,322.73 -375,188,159.83
Gains on asset disposal (or less: losses) 11 -5,767.73 195,840.20
III. Operating profit (or less: losses) 160,329,625.85 -383,120,192.97
Add: Non-operating revenue 12 943,633.72 2,414,677.03
Less: Non-operating expenditures 13 37,332.37 267,987.97
IV. Profit before tax (or less: total loss) 161,235,927.20 -380,973,503.91
Less: Income tax expenses 14 61,682,858.60 -3,377,545.61
V. Net profit (or less: net loss) 99,553,068.60 -377,595,958.30
(I) Categorized by the continuity of operations
(II) Categorized by the portion of equity ownership
VI. Other comprehensive income after tax 1,442,384.71 -3,159,868.45
Items attributable to the owners of the parent company 254,699.21 -2,259,043.13
(I) Not to be reclassified subsequently to profit or loss -94,372.03 279,697.38
(II) To be reclassified subsequently to profit or loss 349,071.24 -2,538,740.51
income
Items attributable to non-controlling shareholders 1,187,685.50 -900,825.32
VII. Total comprehensive income 100,995,453.31 -380,755,826.75
Items attributable to the owners of the parent company 100,210,702.96 -178,969,990.78
Items attributable to non-controlling shareholders 784,750.35 -201,785,835.97
VIII. Earnings per share (EPS):
(I) Basic EPS (yuan per share) 0.0988 -0.17
(II) Diluted EPS (yuan per share) 0.0988 -0.17
Legal representative:Chen Ming Officer in charge of accounting:Wang Jianfei Head of accounting department: Zhou Hongpu
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
Parent company income statement for the year ended December 31, 2025
(Expressed in Renminbi Yuan)
Note
Items Current period cumulative Preceding period comparative
No.
I. Operating revenue 1 55,418,737.49 66,748,188.58
Less: Operating cost 1 32,383,899.84 35,527,944.94
Taxes and surcharges 11,787,996.18 10,897,850.09
Selling expenses 3,537,883.41 2,662,206.55
Administrative expenses 40,675,125.54 46,350,929.47
R&D expenses
Financial expenses 3,293,463.09 -38,414.46
Including: Interest expenses 3,386,158.31 2,026,547.84
Interest income 940,122.04 1,621,311.93
Add: Other income 28,158.18 810,791.58
Investment income (or less: losses) 2 915,013.90 1,346,463.59
Including: Investment income from associates and joint ventures
Gains from derecognition of financial assets at amortized cost
Gains on net exposure to hedging risk (or less: losses)
Gains on changes in fair value (or less: losses) 16,365,273.81 18,461,736.59
Credit impairment loss -102,913,935.37 -208,718.92
Assets impairment loss -28,585,102.29 -162,599,084.25
Gains on asset disposal (or less: losses) -5,767.73 224,495.95
II. Operating profit (or less: losses) -150,455,990.07 -170,616,643.47
Add: Non-operating revenue 97,134.22 4.56
Less: Non-operating expenditures 1,646.83 31,796.55
III. Profit before tax (or less: total loss) -150,360,502.68 -170,648,435.46
Less: Income tax expenses -10,800,155.59 -6,709,691.79
IV. Net profit (or less: net loss) -139,560,347.09 -163,938,743.67
(I) Net profit from continuing operations (or less: net loss) -139,560,347.09 -163,938,743.67
(II) Net profit from discontinued operations (or less: net loss)
V. Other comprehensive income after tax -94,372.03 279,697.38
(I) Not to be reclassified subsequently to profit or loss -94,372.03 279,697.38
or loss
(II) To be reclassified subsequently to profit or loss
loss
comprehensive income
VI. Total comprehensive income -139,654,719.12 -163,659,046.29
VII. Earnings per share (EPS):
(I) Basic EPS (yuan per share)
(II) Diluted EPS (yuan per share)
Legal representative:Chen Ming Officer in charge of accounting:Wang Jianfei Head of accounting department: Zhou Hongpu
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
Consolidated cash flow statement for the year ended December 31, 2025
(Expressed in Renminbi Yuan)
Note Current period Preceding period
Items
No. cumulative comparative
I. Cash flows from operating activities:
Cash receipts from sale of goods or rendering of services 249,184,246.74 448,831,107.10
Net increase of client deposit and interbank deposit
Net increase of central bank loans
Net increase of loans from other financial institutions
Cash receipts from original insurance contract premium
Net cash receipts from reinsurance
Net increase of policy-holder deposit and investment
Cash receipts from interest, handling fees and commissions
Net increase of loans from others
Net increase of repurchase
Net cash receipts from agency security transaction
Receipts of tax refund 14,477,207.75 20,414,313.02
Other cash receipts related to operating activities 2 (1) 4,802,922.19 15,889,802.02
Subtotal of cash inflows from operating activities 268,464,376.68 485,135,222.14
Cash payments for goods purchased and services received 159,265,542.61 350,375,195.02
Net increase of loans and advances to clients
Net increase of central bank deposit and interbank deposit
Cash payments for insurance indemnities of original insurance contracts
Net increase of loans to others
Cash payments for interest, handling fees and commissions
Cash payments for policy bonus
Cash paid to and on behalf of employees 66,521,536.12 76,680,764.14
Cash payments for taxes and rates 85,194,960.04 133,539,738.45
Other cash payments related to operating activities 2 (2) 52,801,771.84 51,943,474.32
Subtotal of cash outflows from operating activities 363,783,810.61 612,539,171.93
Net cash flows from operating activities -95,319,433.93 -127,403,949.79
II. Cash flows from investing activities:
Cash receipts from withdrawal of investments
Cash receipts from investment income 1 (1) 778,495.00 777,600.00
Net cash receipts from the disposal of fixed assets, intangible assets and other long-
term assets
Net cash receipts from the disposal of subsidiaries & other business units 1 (3) 78,085.65 568,863.59
Other cash receipts related to investing activities 2 (3) 1,114,167,212.32
Subtotal of cash inflows from investing activities 1,115,186,529.17 1,866,393.80
Cash payments for the acquisition of fixed assets, intangible assets and other long-
term assets
Cash payments for investments
Net increase of pledged borrowings
Net cash payments for the acquisition of subsidiaries & other business units
Other cash payments related to investing activities 2 (4) 1,160,000,000.00 90,000,000.00
Subtotal of cash outflows from investing activities 1,161,905,620.00 91,547,315.83
Net cash flows from investing activities -46,719,090.83 -89,680,922.03
III. Cash flows from financing activities:
Cash receipts from absorbing investments
Including: Cash received by subsidiaries from non-controlling shareholders as
investments
Cash receipts from borrowings 50,000.00 1,563,000.00
Other cash receipts related to financing activities
Subtotal of cash inflows from financing activities 50,000.00 1,563,000.00
Cash payments for the repayment of borrowings 96,162,025.65 117,562,497.60
Cash payments for distribution of dividends or profits and for interest expenses 3,760,510.21 5,251,186.81
Including: Cash paid by subsidiaries to non-controlling shareholders as dividend or
profit
Other cash payments related to financing activities
Subtotal of cash outflows from financing activities 99,922,535.86 122,813,684.41
Net cash flows from financing activities -99,872,535.86 -121,250,684.41
IV. Effect of foreign exchange rate changes on cash and cash equivalents -107,272.95 99,397.32
V. Net increase in cash and cash equivalents -242,018,333.57 -338,236,158.91
Add: Opening balance of cash and cash equivalents 520,910,254.44 859,146,413.35
VI. Closing balance of cash and cash equivalents 278,891,920.87 520,910,254.44
Legal representative:Chen Ming Officer in charge of accounting:Wang Jianfei Head of accounting department: Zhou Hongpu
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
Parent company cash flow statement for the year ended December 31, 2025
(Expressed in Renminbi Yuan)
Current period Preceding period
Items
cumulative comparative
I. Cash flows from operating activities:
Cash receipts from sale of goods and rendering of services 60,541,112.28 73,948,934.37
Receipts of tax refund 78,381.82
Other cash receipts related to operating activities 1,063,939.44 92,592,202.32
Subtotal of cash inflows from operating activities 61,605,051.72 166,619,518.51
Cash payments for goods purchased and services received 14,700,881.22 878,298.06
Cash paid to and on behalf of employees 32,496,371.88 40,882,224.68
Cash payments for taxes and rates 13,179,103.88 24,077,901.52
Other cash payments related to operating activities 952,087,247.22 42,931,087.13
Subtotal of cash outflows from operating activities 1,012,463,604.20 108,769,511.39
Net cash flows from operating activities -950,858,552.48 57,850,007.12
II. Cash flows from investing activities:
Cash receipts from withdrawal of investments
Cash receipts from investment income 915,013.90 1,346,463.59
Net cash receipts from the disposal of fixed assets, intangible
assets and other long-term assets
Net cash receipts from the disposal of subsidiaries & other
business units
Other cash receipts related to investing activities 1,114,167,212.32
Subtotal of cash inflows from investing activities 1,115,083,733.72 1,346,463.59
Cash payments for the acquisition of fixed assets, intangible assets
and other long-term assets
Cash payments for investments
Net cash payments for the acquisition of subsidiaries & other
business units
Other cash payments related to investing activities 110,000,000.00 90,000,000.00
Subtotal of cash outflows from investing activities 111,962,727.29 90,365,798.00
Net cash flows from investing activities 1,003,121,006.43 -89,019,334.41
III. Cash flows from financing activities:
Cash receipts from absorbing investments
Cash receipts from borrowings
Other cash receipts related to financing activities
Subtotal of cash inflows from financing activities
Cash payments for the repayment of borrowings 62,648,446.42 125,173.20
Cash payments for distribution of dividends or profits and for
interest expenses
Other cash payments related to financing activities
Subtotal of cash outflows from financing activities 66,034,604.73 2,151,721.04
Net cash flows from financing activities -66,034,604.73 -2,151,721.04
IV. Effect of foreign exchange rate changes on cash and cash
equivalents
V. Net increase in cash and cash equivalents -13,772,150.78 -33,321,048.33
Add: Opening balance of cash and cash equivalents 83,656,432.61 116,977,480.94
VI. Closing balance of cash and cash equivalents 69,884,281.83 83,656,432.61
Legal representative:Chen Ming Officer in charge of accounting:Wang Jianfei Head of accounting department: Zhou Hongpu
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
Consolidated statement of changes in equity for the year ended December 31, 2025
(Expressed in Renminbi Yuan)
Current period cumulative
Equity attributable to parent company
Items Other equity instruments Less: Other General Non-controlling
Special Surplus Undistributed Total equity
Share capital Preferred Perpetual Capital reserve Treasury comprehensive risk interest
Others reserve reserve profit
shares bonds shares income reserve
I. Balance at the end of prior year 1,011,660,000.00 978,244,910.11 23,060,416.31 275,253,729.26 1,223,893,437.74 -116,725,425.75 3,395,387,067.67
Add: Cumulative changes of accounting
policies
Error correction of prior period
Business combination under common control
Others
II. Balance at the beginning of current year 1,011,660,000.00 978,244,910.11 23,060,416.31 275,253,729.26 1,223,893,437.74 -116,725,425.75 3,395,387,067.67
III. Current period increase (or less: decrease) 254,699.21 99,956,003.75 -26,118,571.43 74,092,131.53
(I) Total comprehensive income 254,699.21 99,956,003.75 784,750.35 100,995,453.31
(II) Capital contributed or withdrawn by owners -26,903,321.78 -26,903,321.78
instruments
equity
(III) Profit distribution
(IV) Internal carry-over within equity
to retained earnings
retained earnings
(V) Special reserve
(VI) Others
IV. Balance at the end of current period 1,011,660,000.00 978,244,910.11 23,315,115.52 275,253,729.26 1,323,849,441.49 -142,843,997.18 3,469,479,199.20
Legal representative:Chen Ming Officer in charge of accounting:Wang Jianfei Head of accounting department:Zhou Hongpu
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
Consolidated statement of changes in equity for the year ended December 31, 2025 (continued)
(Expressed in Renminbi Yuan)
Preceding period comparative
Equity attributable to parent company
Items Other equity instruments Less: Other General Non-controlling
Special Surplus Undistributed Total equity
Share capital Preferred Perpetual Capital reserve Treasury comprehensive risk interest
Others reserve reserve profit
shares bonds shares income reserve
I. Balance at the end of prior year 1,011,660,000.00 978,244,910.11 25,319,459.44 275,253,729.26 1,400,604,385.39 85,060,410.22 3,776,142,894.42
Add: Cumulative changes of accounting
policies
Error correction of prior period
Business combination under common control
Others
II. Balance at the beginning of current year 1,011,660,000.00 978,244,910.11 25,319,459.44 275,253,729.26 1,400,604,385.39 85,060,410.22 3,776,142,894.42
III. Current period increase (or less: decrease) -2,259,043.13 -176,710,947.65 -201,785,835.97 -380,755,826.75
(I) Total comprehensive income -2,259,043.13 -176,710,947.65 -201,785,835.97 -380,755,826.75
(II) Capital contributed or withdrawn by owners
instruments
equity
(III) Profit distribution
(IV) Internal carry-over within equity
to retained earnings
retained earnings
(V) Special reserve
(VI) Others
IV. Balance at the end of current period 1,011,660,000.00 978,244,910.11 23,060,416.31 275,253,729.26 1,223,893,437.74 -116,725,425.75 3,395,387,067.67
Legal representative:Chen Ming Officer in charge of accounting:Wang Jianfei Head of accounting department:Zhou Hongpu
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
Parent company statement of changes in equity for the year ended December 31, 2025
(Expressed in Renminbi Yuan)
Current period cumulative
Other equity instruments Less: Other
Items Special
Share capital Preferred Perpetual Capital reserve Treasury comprehensive Surplus reserve Undistributed profit Total equity
Others reserve
shares bonds shares income
I. Balance at the end of prior year 1,011,660,000.00 964,711,931.13 2,023,005.89 252,124,115.85 1,237,671,562.02 3,468,190,614.89
Add: Cumulative changes of accounting policies
Error correction of prior period
Others
II. Balance at the beginning of current year 1,011,660,000.00 964,711,931.13 2,023,005.89 252,124,115.85 1,237,671,562.02 3,468,190,614.89
III. Current period increase (or less: decrease) -94,372.03 -139,560,347.09 -139,654,719.12
(I) Total comprehensive income -94,372.03 -139,560,347.09 -139,654,719.12
(II) Capital contributed or withdrawn by owners
instruments
(III) Profit distribution
(IV) Internal carry-over within equity
retained earnings
earnings
(V) Special reserve
(VI) Others
IV. Balance at the end of current period 1,011,660,000.00 964,711,931.13 1,928,633.86 252,124,115.85 1,098,111,214.93 3,328,535,895.77
Legal representative:Chen Ming Officer in charge of accounting:Wang Jianfei Head of accounting department:Zhou Hongpu
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
Parent company statement of changes in equity for the year ended December 31, 2025(continued)
(Expressed in Renminbi Yuan)
Preceding period comparative
Other equity instruments Less: Other
Items Special Undistributed
Share capital Preferred Perpetual Capital reserve Treasury comprehensive Surplus reserve Total equity
Others reserve profit
shares bonds shares income
I. Balance at the end of prior year 1,011,660,000.00 964,711,931.13 1,743,308.51 252,124,115.85 1,401,610,305.69 3,631,849,661.18
Add: Cumulative changes of accounting policies
Error correction of prior period
Others
II. Balance at the beginning of current year 1,011,660,000.00 964,711,931.13 1,743,308.51 252,124,115.85 1,401,610,305.69 3,631,849,661.18
III. Current period increase (or less: decrease) 279,697.38 -163,938,743.67 -163,659,046.29
(I) Total comprehensive income 279,697.38 -163,938,743.67 -163,659,046.29
(II) Capital contributed or withdrawn by owners
instruments
(III) Profit distribution
(IV) Internal carry-over within equity
retained earnings
earnings
(V) Special reserve
(VI) Others
IV. Balance at the end of current period 1,011,660,000.00 964,711,931.13 2,023,005.89 252,124,115.85 1,237,671,562.02 3,468,190,614.89
Legal representative:Chen Ming Officer in charge of accounting:Wang Jianfei Head of accounting department:Zhou Hongpu
Shenzhen Special Economic Zone Real Estate (Group) Co., Ltd
Notes to the Financial Statements
Amount in RMB
Shenzhen Special Economic Zone Real Estate (Group) Co., Ltd. (hereinafter referred to as
the company or the company) was reorganized and established as a joint stock limited company
on the basis of the former Shenzhen Special Economic Zone Real Estate Corporation with the
approval of the general office of the Shenzhen Municipal People's government. It was registered
with the Shenzhen Administration for Industry and Commerce of Guangdong Province in July
company is 91440300192179585N, the registered capital is 1,011,660,000.00 yuan, and the total
number of shares is 1,011,660,000 shares (par value 1 yuan per share). Among them, 891,660,000
A-shares and 120,000,000 B-shares were outstanding without restrictions. The company's shares
were listed and traded on the Shenzhen Stock Exchange on September 15, 1993 and January 10,
The company belongs to the real estate industry. The main business activities are real estate
development and commercial housing sales, property leasing and management, commodity retail
and trade, hotel business, equipment installation and maintenance, construction, interior
decoration and other businesses.
The financial statements have been approved by the 28th meeting of the eighth board of
directors of the company on March 18, 2026.
（1） Basis of compilation
The financial statements of the company are prepared on a going concern basis.
（2） Sustainability assessment
The company has no events or circumstances that cause material doubts about its ability to
continue as a going concern within 12 months from the end of the reporting period.
Important note: according to the actual production and operation characteristics, the company
has formulated specific accounting policies and accounting estimates for transactions or events
such as impairment of financial instruments, inventory, depreciation of fixed assets, construction
in progress, intangible assets and revenue recognition.
（1） Statement of compliance with accounting standards for business enterprises
The financial statements prepared by the company comply with the requirements of the
accounting standards for business enterprises and truly and completely reflect the financial
position, operating results and cash flow of the company.
（2） Fiscal period
The fiscal year starts on January 1 and ends on December 31 of the Gregorian calendar.
（3） Business cycle
The business cycle of the company's business is relatively short, and 12 months is used as the
liquidity classification standard of assets and liabilities. The business cycle of the real estate
industry from real estate development to sales realization is generally more than 12 months, and
the specific cycle is determined according to the development project, and its business cycle is
used as the liquidity classification standard of assets and liabilities.
（4） Bookkeeping base currency
RMB is used as the bookkeeping base currency. The company and its overseas Hong Kong
subsidiaries adopt RMB as the bookkeeping base currency, and the overseas subsidiaries of great
wall real estate Co., Ltd. are engaged in overseas operations, and the US dollar, the currency in the
main economic environment in which they operate, is selected as the bookkeeping base currency.
The currency used by the company for the preparation of these financial statements is RMB.
（5） Determination method and selection basis of importance standard
The company's preparation and disclosure of the financial statements comply with the
principle of materiality. The matters disclosed in the notes to the financial statements that involve
the judgment of the materiality standard and the determination method and selection basis of the
materiality standard are as follows:
Judgment involving importance criteria Determination method and selection basis of
disclosures importance standard
Recovery or reversal of bad debt reserves
The single amount exceeds 0.5% of the total assets
for important notes receivable
Important write off notes receivable The single amount exceeds 0.5% of the total assets
Important accounts receivable with single
The single amount exceeds 0.5% of the total assets
provision for bad debts
Recovery or reversal of bad debt reserves
The single amount exceeds 0.5% of the total assets
for important accounts receivable
Important write off accounts receivable The single amount exceeds 0.5% of the total assets
Other receivables with important single
The single amount exceeds 0.5% of the total assets
provision for bad debts
Recovery or reversal of bad debt reserves
The single amount exceeds 0.5% of the total assets
for important other receivables
Important write off of other receivables The single amount exceeds 0.5% of the total assets
Important contract assets with individual
The single amount exceeds 0.5% of the total assets
provision for impairment
Recovery or reversal of provision for
The single amount exceeds 0.5% of the total assets
impairment of important contract assets
Important write off contract assets The single amount exceeds 0.5% of the total assets
Significant change in book value of
The change amount exceeds 0.5% of the total assets
contract assets
Important prepayments older than 1 year The single amount exceeds 0.5% of the total assets
The total investment in a single project exceeds
Important projects under construction
Significant overdue borrowings The single amount exceeds 0.5% of the total assets
Significant overdue interest payable The single amount exceeds 0.5% of the total assets
Important accounts payable older than 1
The single amount exceeds 0.5% of the total assets
year
Other accounts payable with important
The single amount exceeds 0.5% of the total assets
account age exceeding 1 year
Important advance receipts older than 1
The single amount exceeds 0.5% of the total assets
year or overdue
Important contract liabilities with an
The single amount exceeds 0.5% of the total assets
account age of more than one year
Significant change in book value of
The change amount exceeds 0.5% of the total assets
contract liabilities
Cash flow from important investment
The single amount exceeds 5% of the total assets
activities
Important subsidiaries and non wholly- Total assets/total revenue/total profit exceeds 15%
owned subsidiaries of total assets/total revenue/total profit of the group
The book value of a single long-term equity
investment exceeds 15% of the group's net
Important joint ventures and associates assets/the investment income calculated by a single
equity method exceeds 15% of the group's total
profit
（6） Accounting treatment methods for business combinations under the common control
and not under the common control
The assets and liabilities obtained by the company in the merger of enterprises shall be
measured according to the book value of the combined party in the consolidated financial
statements of the final controller on the merger date. The company adjusts the capital reserve
according to the difference between the book value share of the owner's equity of the merged
party in the consolidated financial statements of the final controller and the book value of the
merger consideration paid or the total face value of the shares issued; If the capital reserve is
insufficient to offset, the retained earnings shall be adjusted.
On the acquisition date, the difference between the merger cost and the fair value share of the
identifiable net assets of the acquiree obtained in the merger is recognized as goodwill; If the
merger cost is less than the fair value share of the identifiable net assets of the acquiree obtained in
the merger, the fair value of the identifiable assets, liabilities and contingent liabilities of the
acquiree obtained and the measurement of the merger cost shall be reviewed first. If the merger
cost is still less than the fair value share of the identifiable net assets of the acquiree obtained in
the merger after review, the difference shall be included in the current profit and loss.
（ 7 ） Judgment criteria for control and preparation method of consolidated financial
statements
It is recognized as control if it has the power over the investee, enjoys variable returns by
participating in the relevant activities of the investee, and has the ability to use its power over the
investee to affect its variable return amount.
The parent company includes all subsidiaries under its control in the scope of consolidation
of the consolidated financial statements. The consolidated financial statements are based on the
financial statements of the parent company and its subsidiaries and are prepared by the parent
company in accordance with the accounting standards for enterprises No.33-consolidated financial
statements in accordance with other relevant information.
（ 8 ） Classification of joint venture arrangements and accounting treatment of joint
operations
to the share of interests in the joint operation shall be recognized:
(1) Confirm the assets held separately and the assets held jointly according to the holding
share;
(2) Recognize the liabilities assumed separately and the liabilities assumed jointly according
to the holding share;
(3) Recognize the income generated by the sale of the company's share of joint operating
output;
(4) Recognize the income generated from the sale of assets in the joint operation according to
the company's holding share;
(5) Confirm the expenses incurred separately and the expenses incurred in joint operation
according to the share held by the company.
（9） Criteria for determining cash and cash equivalents
Cash listed in the cash flow statement refers to cash on hand and deposits that can be used for
payment at any time. Cash equivalents refer to investments held by enterprises with short term,
strong liquidity, easy conversion to known amounts of cash and little risk of value changes.
（10） Foreign currency business and translation of foreign currency statements
When foreign currency transactions are initially recognized, they are converted into RMB at
the spot exchange rate on the date of the transaction. On the balance sheet date, foreign currency
monetary items are converted at the spot exchange rate on the balance sheet date. The exchange
difference arising from different exchange rates is included in the current profit and loss, except
for the exchange difference between the principal and interest of foreign currency special loans
related to the purchase and construction of assets eligible for capitalization; Non monetary items
in foreign currencies measured at historical cost shall still be converted at the spot exchange rate
on the date of transaction without changing their RMB amount; Non monetary items in foreign
currencies measured at fair value are translated at the spot exchange rate on the date of
determination of fair value, and the difference is included in current profits and losses or other
comprehensive income.
The assets and liabilities in the balance sheet shall be converted at the spot exchange rate on
the balance sheet date; Except for the "undistributed profit" item, other items of owner's equity are
converted at the spot exchange rate on the transaction date; The income and expense items in the
income statement shall be converted at the approximate exchange rate of the spot exchange rate on
the date of transaction. The translation difference of foreign currency financial statements arising
from the above conversion is included in other comprehensive income.
（11） Financial instruments
Financial assets are divided into the following three categories at initial recognition: (1)
financial assets measured at amortized cost; (2) Financial assets measured at fair value with
changes included in other comprehensive income; (3) Financial assets measured at fair value and
whose changes are included in the current profit and loss.
Financial liabilities are divided into the following four categories at initial recognition: (1)
financial liabilities measured at fair value and whose changes are included in the current profit and
loss; (2) The transfer of financial assets does not meet the conditions for termination of
recognition or continues to be involved in the financial liabilities formed by the transferred
financial assets; (3) Financial guarantee contracts that do not belong to (1) or (2) above, and loan
commitments that do not belong to (1) above and lend at a lower market interest rate; (4) Financial
liabilities measured at amortized cost.
financial assets and financial liabilities
(1) Recognition basis and initial measurement method of financial assets and financial
liabilities
A financial asset or financial liability is recognized when the company becomes a party to a
financial instrument contract. When financial assets or financial liabilities are initially recognized,
they are measured at fair value; For financial assets and financial liabilities measured at fair value
and whose changes are included in the current profit and loss, the relevant transaction costs are
directly included in the current profit and loss; For other types of financial assets or financial
liabilities, the relevant transaction costs are included in the initial recognition amount. However, if
the accounts receivable initially recognized by the company does not contain major financing
components or the company does not consider the financing components in contracts not
exceeding one year, the initial measurement shall be made in accordance with the transaction price
defined in the accounting standards for enterprises No.14 - revenue.
(2) Subsequent measurement methods of financial assets
The effective interest rate method is adopted for subsequent measurement according to the
amortized cost. Gains or losses arising from financial assets measured at amortized cost and not
part of any hedging relationship are included in the current profit and loss when they are
derecognized, reclassified, amortized or recognized as impaired under the effective interest rate
method.
Fair value is used for subsequent measurement.Interest, impairment losses or gains and
exchange gains and losses calculated using the effective interest rate method are included in the
current profit and loss, while other gains or losses are included in other comprehensive income. At
the time of termination of recognition, the cumulative gains or losses previously included in other
comprehensive income shall be transferred out of other comprehensive income and included in the
current profit and loss.
comprehensive income
Fair value is used for subsequent measurement. Dividends obtained (except for the part of
investment cost recovery) are included in the current profit and loss, and other gains or losses are
included in other comprehensive income. At the time of termination of recognition, the cumulative
gains or losses previously included in other comprehensive income are transferred out of other
comprehensive income and included in retained earnings.
Subsequent measurement is carried out at fair value, and the resulting gains or losses
(including interest and dividend income) are included in the current profit and loss, unless the
financial asset is part of the hedging relationship.
(3) Subsequent measurement methods of financial liabilities
Such financial liabilities include trading financial liabilities (including derivatives belonging
to financial liabilities) and financial liabilities designated as measured at fair value and whose
changes are included in the current profit and loss. Such financial liabilities are subsequently
measured at fair value. The amount of change in fair value of financial liabilities designated as
measured at fair value through profit or loss due to changes in the company's own credit risk is
included in other comprehensive income, unless the treatment will cause or expand the accounting
mismatch in profit or loss.Other gains or losses arising from such financial liabilities (including
interest expenses, except changes in fair value caused by changes in the company's own credit risk)
are included in the current profit and loss, unless the financial liabilities are part of the hedging
relationship. At the time of termination of recognition, the cumulative gains or losses previously
included in other comprehensive income are transferred out of other comprehensive income and
included in retained earnings.
conditions for termination of recognition or continue to be involved in the transferred financial
assets
It is measured in accordance with the relevant provisions of the accounting standards for
enterprises No.23 - transfer of financial assets.
that do not belong to 1) above and lend at a lower market interest rate
After initial recognition, subsequent measurement shall be made according to the higher of
the following two amounts: ① The amount of loss reserves determined in accordance with the
impairment provisions of financial instruments; ② The balance of the initially recognized amount
after deducting the cumulative amortization determined in accordance with the relevant provisions
of the accounting standards for enterprises No.14 - revenue.
The effective interest rate method is used to measure at amortized cost. Gains or losses
arising from financial liabilities measured at amortized cost and not part of any hedging
relationship are included in the current profit and loss when they are derecognized and amortized
according to the effective interest rate method.
(4) Derecognition of financial assets and financial liabilities
terminated:
① The contractual right to collect cash flows from financial assets has been terminated;
② Financial assets have been transferred, and the transfer meets the provisions of the
accounting standards for enterprises No.23 - transfer of financial assets on the termination of
recognition of financial assets.
recognition of the financial liability (or part of the financial liability) shall be terminated
accordingly.
If the company transfers almost all the risks and rewards of the ownership of a financial asset,
it shall terminate the recognition of the financial asset, and the rights and obligations arising or
retained in the transfer shall be separately recognized as assets or liabilities; If almost all the risks
and rewards of the ownership of financial assets are retained, the transferred financial assets shall
continue to be recognized. If the company neither transfers nor retains almost all the risks and
remuneration of the ownership of financial assets, it shall be dealt with as follows: (1) if it does
not retain control over the financial assets, the recognition of the financial assets shall be
terminated, and the rights and obligations arising or retained in the transfer shall be separately
recognized as assets or liabilities; (2) If the control over the financial assets is retained, the
relevant financial assets shall be recognized according to the degree of continued involvement in
the transferred financial assets, and the relevant liabilities shall be recognized accordingly.
If the overall transfer of financial assets meets the conditions for termination of recognition,
the difference between the following two amounts shall be included in the current profit and loss:
(1) the book value of the transferred financial assets on the date of termination of recognition; (2)
The sum of the consideration received from the transfer of financial assets and the amount of the
corresponding derecognized part of the cumulative changes in fair value originally directly
included in other comprehensive income (the financial assets involved in the transfer are debt
instrument investments measured at fair value and whose changes are included in other
comprehensive income).If a part of a financial asset is transferred and the transferred part as a
whole meets the conditions for termination of recognition, the overall book value of the financial
asset before transfer shall be apportioned between the part that is terminated and the part that
continues to be recognized according to their respective relative fair values on the transfer date,
and the difference between the following two amounts shall be included in the current profit and
loss: (1) the book value of the part that is terminated; (2) The sum of the consideration of the part
whose recognition is terminated and the amount of the part whose recognition is terminated
corresponding to the cumulative amount of fair value changes originally directly included in other
comprehensive income (the financial assets involved in transfer are debt instrument investments
measured at fair value and whose changes are included in other comprehensive income).
The company adopts valuation techniques that are applicable in the current situation and
supported by sufficient available data and other information to determine the fair value of relevant
financial assets and financial liabilities.The company divides the input values used in the valuation
technology into the following levels and uses them in turn:
(1) The input value of the first level is the unadjusted quotation of the same assets or
liabilities that can be obtained on the measurement date in the active market;
(2) The second level input value is the directly or indirectly observable input value of related
assets or liabilities in addition to the first level input value, including: the quotation of similar
assets or liabilities in the active market;Quotations for identical or similar assets or liabilities in
inactive markets;Other observable inputs other than quotation, such as interest rate and yield curve
observable during normal quotation interval; Input value of market verification, etc;
(3) The third level of input value is the unobservable input value of related assets or liabilities,
including interest rates that cannot be directly observed or verified by observable market data,
stock volatility, future cash flow of disposal obligations undertaken in business mergers, financial
forecasts made using their own data, etc.
On the basis of expected credit losses, the company carries out impairment treatment on
financial assets measured at amortized cost, debt instrument investments measured at fair value
with changes included in other comprehensive income, contract assets, lease receivables, loan
commitments other than financial liabilities classified as financial liabilities measured at fair value
with changes included in current profit and loss, financial liabilities not measured at fair value
with changes included in current profit and loss, or financial guarantee contracts not belonging to
financial assets whose transfer does not meet the conditions for termination of recognition or
continues to be involved in the transferred financial assets, and recognizes loss reserves.
Expected credit losses refer to the weighted average value of credit losses of financial
instruments weighted by the risk of default.Credit loss refers to the difference between all contract
cash flows receivable under the contract and all cash flows expected to be received by the
company discounted at the original effective interest rate, that is, the present value of all cash
shortages.Among them, the financial assets purchased or generated by the company that have
suffered credit impairment are discounted at the effective interest rate adjusted by the credit of the
financial assets.
For financial assets purchased or generated with credit impairment, the company only
recognizes the cumulative changes in expected credit losses during the whole duration after initial
recognition as loss reserves on the balance sheet date.
For lease receivables, receivables and contract assets formed by transactions regulated by the
accounting standards for enterprises No.14 - income, the company uses a simplified measurement
method to measure the loss reserve according to the expected credit loss amount equivalent to the
whole duration.
For financial assets other than the above measurement methods, the company assesses
whether its credit risk has increased significantly since initial recognition on each balance sheet
date.If the credit risk has increased significantly since initial recognition, the company measures
the loss reserve according to the amount of expected credit loss during the whole duration; If the
credit risk has not increased significantly since initial recognition, the company measures the loss
reserve according to the amount of expected credit loss of the financial instrument in the next 12
months.
The company uses available reasonable and evidentiary information, including forward-
looking information, to determine whether the credit risk of financial instruments has increased
significantly since initial recognition by comparing the risk of default of financial instruments on
the balance sheet date with the risk of default on the initial recognition date.
On the balance sheet date, if the company judges that a financial instrument has only a low
credit risk, it is assumed that the credit risk of the financial instrument has not increased
significantly since initial recognition.
The company assesses the expected credit risk and measures the expected credit loss on the
basis of a single financial instrument or a combination of financial instruments.When based on the
portfolio of financial instruments, the company divides financial instruments into different
portfolios based on common risk characteristics.
The company remeasures the expected credit loss on each balance sheet date, and the
increase or reversal of the loss provision thus formed is included in the current profit and loss as
an impairment loss or gain.For financial assets measured at amortized cost, the loss provision shall
be offset against the book value of the financial assets listed in the balance sheet;For creditor's
rights investments measured at fair value and whose changes are included in other comprehensive
income, the company recognizes its loss reserves in other comprehensive income and does not
offset the book value of the financial asset.
Financial assets and financial liabilities are presented separately in the balance sheet and do
not offset each other.However, if the following conditions are met at the same time, the company
shall list them in the balance sheet at the net amount after mutual offset: (1) the company has the
legal right to offset the recognized amount, and such legal right is currently enforceable; (2) The
company plans to settle at a net amount, or realize the financial assets and settle the financial
liabilities at the same time.
For the transfer of financial assets that do not meet the conditions for termination of
recognition, the company will not offset the transferred financial assets and related liabilities.
（12） Recognition criteria and provision methods for expected credit losses of receivables
and contract assets
combination of credit risk characteristics
Methods of measuring
Portfolio category Basis for determining portfolio
expected credit losses
Referring to the experience of
Bank acceptance bills
historical credit loss,
receivable
combined with the current
situation and the forecast of
future economic conditions,
Note type
the expected credit loss is
Commercial acceptance bills calculated through default
receivable risk exposure and the
expected credit loss rate for
the whole duration
Accounts receivable portfolio of Referring to the experience of
related parties within the scope Nature of payment historical credit loss,
of consolidation combined with the current
Accounts receivable - portfolio situation and the forecast of
Nature of payment
of real estate sales receivables future economic conditions,
Accounts receivable the expected credit loss is
Nature of payment
construction portfolio calculated through default
Accounts receivable - accounts risk exposure and the
Nature of payment expected credit loss rate for
receivable from other customer
Methods of measuring
Portfolio category Basis for determining portfolio
expected credit losses
portfolios the whole duration
Other receivables - portfolio of
receivables from government Nature of payment Referring to historical credit
departments loss experience, combined
with the current situation and
Other receivables - employee
Nature of payment the forecast of future
reserve portfolio receivable
economic conditions, the
Other receivables - combination
Nature of payment expected credit loss is
of receivables and payments
calculated through default
Other receivables portfolio of
Nature of payment risk exposure and the
receivables from related parties
expected credit loss rate in
Other receivables - portfolio of the next 12 months or the
other current accounts Nature of payment whole duration
receivable
Contract asset real estate sales Referring to the experience of
Nature of payment
portfolio historical credit loss,
combined with the current
situation and the forecast of
future economic conditions,
Contract asset construction the expected credit loss is
Nature of payment
portfolio calculated through default
risk exposure and the
expected credit loss rate for
the whole duration
expected credit losses
For receivables and contract assets with significantly different credit risk and portfolio credit
risk, the company withdraws expected credit losses on a single basis.
（13） Inventory
Inventory includes development land, development products, development products
temporarily leased for sale in the process of development and operation, as well as development
costs in the process of development.
(1) Materials and equipment issued shall be priced individually.
(2) During the development of the project, the land for development shall be allocated
according to the floor area of the development products and the grade coefficient of the occupied
land and included in the development cost of the project.
(3) The issued development products are accounted for according to the cost coefficient
sharing method.
(4) The development products and turnover houses temporarily leased for sale are amortized
averagely by stages according to the estimated service life of the company's similar fixed assets.
(5) If the public supporting facilities are completed earlier than the relevant development
products, they shall be included in the development costs of the relevant development projects
according to the construction area distribution of the relevant development projects after the final
settlement of the completion of the public supporting facilities;If the public supporting facilities
are completed later than the relevant development products, the public supporting facilities fee
shall be accrued for 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 public supporting facilities.
The inventory system of inventory is a perpetual inventory system.
(1) Low value consumables
Amortization is carried out in batches according to the number of times of use.
(2) Packaging
Amortization is carried out in batches according to the number of times of use.
On the balance sheet date, inventory is measured at the lower of cost and net realisable value,
and provision for inventory depreciation is made according to the difference between cost and net
realisable value.For inventory directly used for sale, its net realized value shall be determined by
the estimated selling price of the inventory minus the estimated selling expenses and related taxes
in the normal process of production and operation;For the inventory that needs to be processed, in
the normal process of production and operation, its net realized value shall be determined by the
estimated selling price of the finished products produced minus the estimated cost to be incurred
at the time of completion, the estimated selling expenses and relevant taxes and fees;On the
balance sheet date, if there is a contract price agreement for some parts of the same inventory and
no contract price for other parts, the net realisable value shall be determined respectively, and
compared with its corresponding cost, the amount of provision for inventory depreciation or
reversal shall be determined respectively.
（14） Long-term equity investments
According to the relevant agreements, there is common control over an arrangement, and the
relevant activities of the arrangement must be unanimously agreed by the participants sharing
control rights before making decisions, which is recognized as joint control.It has the power to
participate in the decision-making of the financial and operating policies of the invested entity, but
it is not able to control or jointly control the formulation of these policies with other parties, which
is recognized as a significant impact.
(1) If the merger of enterprises under the same control is formed, and the merger party takes
the payment of cash, the transfer of non cash assets, the assumption of debts or the issuance of
equity securities as the merger consideration, the share of the book value of the owner's equity of
the merged party in the consolidated financial statements of the final controller shall be regarded
as its initial investment cost on the merger date.The capital reserve is adjusted for the difference
between the initial investment cost of long-term equity investment and the book value of the
merger consideration paid or the total face value of the shares issued;If the capital reserve is
insufficient to offset, the retained earnings shall be adjusted.
The company realizes the long-term equity investment formed by the merger of enterprises
under the same control step by step through multiple transactions, and judges whether it belongs to
a "package deal".If it belongs to a "package deal", each transaction shall be accounted for as a
transaction to obtain control.If it does not belong to the "package deal", on the merger date, the
initial investment cost shall be determined according to the share of the book value of the net
assets of the merged party in the consolidated financial statements of the final controller after the
merger.The capital reserve shall be adjusted for the difference between the initial investment cost
of the long-term equity investment on the merger date and the sum of the book value of the long-
term equity investment before the merger plus the book value of the new payment consideration
for the shares further obtained on the merger date;If the capital reserve is insufficient to offset, the
retained earnings shall be adjusted.
(2) If the merger of enterprises not under the same control is formed, the fair value of the
merger consideration paid on the acquisition date shall be regarded as its initial investment cost.
The company realizes the long-term equity investment formed by the merger of enterprises
not under the same control step by step through multiple transactions, and distinguishes between
individual financial statements and consolidated financial statements for relevant accounting
treatment:
originally held and the new investment cost is regarded as the initial investment cost calculated
according to the cost method.
belongs to a "package deal", each transaction shall be accounted for as a transaction to obtain
control.If it is not a "package deal", the equity of the acquiree held before the acquisition date shall
be re measured according to the fair value of the equity on the acquisition date, and the difference
between the fair value and its book value shall be included in the current investment income;If the
equity of the acquiree held before the acquisition date involves other comprehensive income under
the equity method, the other comprehensive income related to it shall be transferred to the current
income on the acquisition date.However, other comprehensive income arising from the re
measurement of net liabilities or changes in net assets of the defined benefit plan by the investee is
excluded.
(3) Except for the merger of enterprises: if it is obtained by paying cash, the actual purchase
price paid shall be regarded as its initial investment cost;If it is obtained by issuing equity
securities, the fair value of issuing equity securities shall be regarded as its initial investment
cost;If it is obtained by debt restructuring, its initial investment cost shall be determined in
accordance with the accounting standards for enterprises NO.12 - debt restructuring;If it is
obtained through the exchange of nonmonetary assets, its initial investment cost shall be
determined in accordance with the accounting standards for enterprises No.7 - exchange of
nonmonetary assets.
The long-term equity investment controlled by the invested unit is accounted for by the cost
method;The long-term equity investment in joint ventures and joint ventures shall be accounted
for by the equity method.
of control
(1) Whether it belongs to the judgment principle of "package deal"
If the equity investment in a subsidiary is disposed of step by step through multiple
transactions until the control right is lost, the company judges whether the step by step transaction
belongs to a "package transaction" by combining the terms of the transaction agreement of each
step of the step by step transaction, the disposal consideration obtained respectively, the object of
selling equity, the disposal method, the disposal time and other information.The terms, conditions
and economic impact of each transaction meet one or more of the following circumstances, which
usually indicate that the multiple transactions belong to a "package deal":
transaction;
transactions.
(2) Accounting treatment not belonging to "package deal"
The difference between the book value of the equity disposed of and the actual price obtained
shall be included in the current profit and loss.For the remaining equity, if it still has a significant
impact on the invested entity or implements joint control with other parties, it shall be accounted
for by the equity method;If the invested entity can no longer be controlled, jointly controlled or
significantly affected, it shall be accounted for in accordance with the relevant provisions of the
accounting standards for enterprises No.22 - recognition and measurement of financial instruments.
Before the loss of control, the difference between the disposal price and the share of net
assets continuously calculated by the subsidiary from the acquisition date or the merger date
corresponding to the disposal of long-term equity investment shall be adjusted to the capital
reserve (capital premium). If the capital premium is insufficient to offset, the retained earnings
shall be offset.
When the control over the atomic company is lost, the remaining equity shall be re measured
at its fair value on the date of loss of control.The difference between the sum of the consideration
obtained from the disposal of equity and the fair value of the remaining equity minus the share of
the net assets of the original subsidiary continuously calculated from the acquisition date or the
merger date calculated according to the original shareholding ratio shall be included in the
investment income of the current period when the control right is lost, and the goodwill shall be
offset.Other comprehensive income related to the equity investment of the original subsidiary
shall be converted to the current investment income when the control right is lost.
(3) Accounting treatment of "package deal"
Each transaction is accounted for as a transaction that disposes of subsidiaries and loses
control.However, the difference between each disposal price and the book value of the long-term
equity investment corresponding to the disposal of the investment before the loss of control is
recognized as other comprehensive income in individual financial statements and transferred to
the profits and losses of the current period when the control is lost.
Each transaction is accounted for as a transaction that disposes of subsidiaries and loses
control.However, before the loss of control, the difference between each disposal price and the
share of net assets of the subsidiary corresponding to the disposal of investment shall be
recognized as other comprehensive income in the consolidated financial statements, and shall be
transferred to the profits and losses of the current period when the control is lost.
（15） Investment properties
transfer after appreciation, and leased buildings.
or amortized in the same way as fixed assets and intangible assets.
（16） Fixed assets
Fixed assets refer to tangible assets held for the production of commodities, the provision of
labor services, leasing or operation and management with a service life of more than one fiscal
year.Fixed assets are recognized when economic benefits are likely to flow in and costs can be
reliably measured.
Annual
Depreciation Depreciation Residual value
Category depreciation
method life (years) rate (%)
rate (%)
straight-line
Houses and buildings 30 5.00 3.17
method
straight-line
Transport equipment 6 5.00 15.83
method
straight-line
Electronics and others 5 5.00 19.00
method
（17） Construction in progress
flow in and the cost can be reliably measured.Construction in progress is measured at the actual
cost incurred before the asset reaches the expected usable state.
to fixed assets according to the actual cost of the project.If it has reached the expected usable state
but has not yet handled the final settlement of completion, it shall be transferred to fixed assets
according to the estimated value first, and then the original estimated value shall be adjusted
according to the actual cost after the final settlement of completion, but the original depreciation
shall not be adjusted.
（18） Borrowing costs
Borrowing costs incurred by the company that can be directly attributable to the purchase,
construction or production of assets eligible for capitalization shall be capitalized and included in
the cost of related assets;Other borrowing costs are recognized as expenses when incurred and
included in the current profit and loss.
(1) When the borrowing costs meet the following conditions at the same time, capitalization
begins: 1) asset expenditure has occurred;2) Borrowing costs have been incurred;3) The
acquisition and construction or production activities necessary to make the assets reach the
intended usable or saleable state have begun.
(2) If the assets eligible for capitalization are abnormally interrupted in the process of
acquisition, construction or production, and the interruption time exceeds three consecutive
months, the capitalization of borrowing costs shall be suspended;Borrowing costs incurred during
the interruption period are recognized as current expenses until the acquisition and construction of
assets or the resumption of production activities.
(3) When the assets purchased, constructed or produced that meet the capitalization
conditions reach the predetermined usable or saleable state, the capitalization of borrowing costs
shall stop.
Where a special loan is borrowed for the purchase and construction or production of assets
eligible for capitalization, the amount of interest that should be capitalized shall be determined
based on the interest expenses actually incurred in the current period of the special loan (including
the amortization of discounts or premiums determined according to the effective interest rate
method), less the interest income obtained by depositing the unused loan funds in the bank or the
investment income obtained by temporary investment;If a general loan is occupied for the
acquisition and construction or production of assets that meet the capitalization conditions, the
amount of interest that should be capitalized on the general loan shall be calculated and
determined according to the weighted average of the asset expenditure of the cumulative asset
expenditure exceeding the special loan multiplied by the capitalization rate of the general loan.
（19） Intangible assets
within the service life according to the expected realization mode of economic benefits related to
the intangible assets, and if the expected realization mode cannot be reliably determined, the
straight line method shall be used for amortization.The details are as follows:
Amortization
Projects Service life and its determination basis
method
The expected realization mode of
Straight line
software economic benefits related to intangible
method
assets, 3-5 years
the service life of the intangible assets in each accounting period.
（20） Impairment of some long-term assets
For long-term equity investment, investment real estate measured by cost model, fixed assets,
construction in progress, right to use assets, intangible assets with limited service life and other
long-term assets, if there are signs of impairment on the balance sheet date, the recoverable
amount is estimated.Intangible assets with uncertain goodwill and service life formed by business
combination, regardless of whether there are signs of impairment, are tested for impairment every
year.Goodwill is tested for impairment in combination with its related asset group or asset group
portfolio.
If the recoverable amount of the above-mentioned long-term assets is lower than its book
value, the provision for asset impairment shall be recognized according to the difference and
included in the current profit and loss.
（21） Long term deferred expenses
The accounting of long-term deferred expenses has been paid, and the amortization period is
more than one year (excluding one year).Long-term deferred expenses are recorded according to
the actual amount incurred and amortized evenly by stages during the benefit period or within the
prescribed period.If the long-term deferred expense item can not benefit the subsequent
accounting period, the amortized value of the item that has not yet been amortized will be
transferred to the current profit and loss.
（22） Employee compensation
termination benefits and other long-term employee benefits.
During the accounting period when employees provide services to the company, the short-
term remuneration actually incurred shall be recognized as liabilities and included in the current
profit and loss or related asset costs.
Post employment benefits are divided into defined contribution plans and defined benefit
plans.
(1) During the accounting period when employees provide services to the company, the
amount payable calculated according to the defined contribution plan is recognized as a liability
and included in the current profit and loss or related asset costs.
(2) The accounting treatment of the defined benefit plan usually includes the following steps:
actuarial assumptions are used to estimate the relevant demographic variables and financial
variables, measure the obligations arising from the establishment of the benefit plan, and
determine the period of the relevant obligations.At the same time, the obligations arising from the
establishment of the benefit plan are discounted to determine the present value of the obligations
of the establishment of the benefit plan and the current service cost;
value of the obligations of the defined benefit plan minus the fair value of the assets of the defined
benefit plan shall be recognized as the net liabilities or net assets of a defined benefit plan.If there
is a surplus in the defined benefit plan, the net assets of the defined benefit plan shall be measured
at the lower of the surplus of the defined benefit plan and the upper limit of assets;
benefit plan is recognized as service cost, net interest on net liabilities or net assets of the defined
benefit plan, and changes arising from remeasurement of net liabilities or net assets of the defined
benefit plan. Among them, service cost and net interest on net liabilities or net assets of the
defined benefit plan are included in current profit and loss or related asset costs. Changes arising
from remeasurement of net liabilities or net assets of the defined benefit plan are included in other
comprehensive income, and are not allowed to be reversed to profit and loss in subsequent
accounting periods, but these amounts recognized in other comprehensive income can be
transferred within the scope of equity.
The termination benefits provided to employees shall be recognized as the employee
compensation liabilities arising from the termination benefits as soon as possible, whichever is
earlier, and shall be included in the current profit and loss: (1) when the company cannot
unilaterally withdraw the termination benefits provided due to the termination of labor relations
plans or layoffs; (2) When the company confirms the costs or expenses related to the
reorganization involving the payment of termination benefits.
Other long-term benefits provided to employees that meet the conditions of the defined
contribution plan shall be accounted for in accordance with the relevant provisions of the defined
contribution plan;In addition, other long-term benefits shall be accounted for in accordance with
the relevant provisions of the defined benefit plan. In order to simplify the relevant accounting
treatment, the total net amount of employee compensation costs arising from them shall be
recognized as service costs, net interest on net liabilities or net assets of other long-term employee
welfare, and changes in net liabilities or net assets of other long-term employee welfare shall be
included in the current profit and loss or related asset costs.
（23） Accounting method of maintenance fund
According to the relevant provisions of the place where the development project is located,
the maintenance fund shall be collected from the buyer or withdrawn by the company into the
development cost of the relevant development products when the development products are sold
(pre-sale), and shall be uniformly handed over to the management department of the maintenance
fund.
（24） Quality margin accounting method
The quality deposit shall be reserved from the project payment of the construction unit
according to the provisions of the construction contract.The maintenance fee incurred during the
warranty period of the development product shall be offset against the quality margin;Upon the
expiration of the agreed warranty period for the developed products, the balance of the quality
deposit shall be returned to the construction unit.
（25） Revenue
On the commencement date of the contract, the company evaluates the contract, identifies
each individual performance obligation contained in the contract, and determines whether each
individual performance obligation is performed within a certain period of time or at a certain point
in time.
If one of the following conditions is met, it belongs to the performance obligation within a
certain period of time, otherwise it belongs to the performance obligation at a certain point of time:
(1) the customer obtains and consumes the economic benefits brought about by the company's
performance at the same time as the company's performance; (2) Customers can control the goods
under construction in the process of performance of the company; (3) The goods produced in the
process of performance by the company have irreplaceable uses, and the company has the right to
collect payment for the performance part that has been completed so far during the whole contract
period.
For the performance obligations performed within a certain period of time, the company shall
recognize the revenue according to the performance progress during that period.When the
performance progress cannot be reasonably determined, if the cost incurred is expected to be
compensated, revenue shall be recognized according to the amount of cost incurred until the
performance progress can be reasonably determined.For the performance obligations performed at
a certain time point, revenue is recognized when the customer obtains control of the relevant
goods or services.In judging whether the customer has obtained control of the goods, the company
considers the following signs: (1) the company enjoys the current collection right in respect of the
goods, that is, the customer has the current payment obligation in respect of the goods; (2) The
company has transferred the legal ownership of the commodity to the customer, that is, the
customer has owned the legal ownership of the commodity; (3) The company has transferred the
commodity in kind to the customer, that is, the customer has occupied the commodity in kind; (4)
The company has transferred the main risks and rewards of the ownership of the commodity to the
customer, that is, the customer has obtained the main risks and rewards of the ownership of the
commodity; (5) The customer has accepted the product; (6) Other signs that customers have
gained control of the goods.
(1) The company shall measure the income according to the transaction price apportioned to
each individual performance obligation.The transaction price is the amount of consideration the
company is expected to be entitled to receive as a result of the transfer of goods or services to
customers, excluding payments received on behalf of third parties and payments expected to be
returned to customers.
(2) If there is a variable consideration in the contract, the company shall determine the best
estimate of the variable consideration according to the expected value or the most likely amount,
but the transaction price including the variable consideration shall not exceed the amount that will
most likely not be significantly reversed when the relevant uncertainties are eliminated.
(3) If there is a significant financing component in the contract, the company shall determine
the transaction price according to the amount payable assuming that the customer will pay in cash
when obtaining control of the goods or services.The difference between the transaction price and
the contract consideration is amortized by the effective interest rate method during the contract
period.
(4) If the contract contains two or more performance obligations, the company shall
apportion the transaction price to each individual performance obligation on the commencement
date of the contract in accordance with the relative proportion of the individual selling price of the
goods promised by each individual performance obligation.
(1) Specific methods for recognizing real estate development and sales revenue
The company's real estate sales business belongs to the performance obligation to be fulfilled
at a certain point in time.The realization of sales revenue shall be recognized when the
development products have been completed and accepted, the sales contract has been signed and
the obligations stipulated in the contract have been fulfilled, the entry notice or announcement has
been issued to the owner, the real estate has been actually delivered to the owner or the delivery
date stipulated in the contract has expired, the full house price has been charged, and the relevant
costs incurred or to be incurred can be reliably measured.
(2) Provide specific methods for recognizing property service income
The company's provision of property management services belongs to the performance
obligation to be performed within a certain period of time, and revenue is recognized according to
the performance progress.The company shall determine the performance progress of the services
according to the time schedule.
(3) Recognition method of engineering construction income
The company provides construction engineering services. As the customer obtains and
consumes the economic benefits brought about by the company's performance at the same time as
the company performs the contract, and the company has the right to collect funds for the
performance part that has been completed so far during the whole contract period, the company
regards it as the performance obligation to perform within a certain period of time, and recognizes
revenue according to the performance progress, unless the performance progress cannot be
reasonably determined.The company determines the performance progress of providing services
in accordance with the investment method.If the performance progress cannot be reasonably
determined, and the cost incurred by the company is expected to be compensated, the revenue
shall be recognized according to the amount of cost incurred until the performance progress can be
reasonably determined.
(4) Other revenue recognition methods
Other income includes hotel operating income, etc. for hotel room income, as customers
obtain and consume the economic benefits brought about by the company's performance at the
same time as the company's performance, the company regards it as a performance obligation to
be performed within a certain period of time, and recognizes the income according to the
performance progress during the accounting period of providing services.For other income,
according to the provisions of relevant contracts and agreements, the realization of income is
recognized when the customer has obtained the control right of relevant commodities and the
relevant funds have been received or the right to collect.
（26） Contract acquisition cost and contract performance cost
If the incremental cost incurred by the company to obtain the contract is expected to be
recovered, it shall be recognized as an asset as the cost of obtaining the contract.
If the cost incurred by the company for the performance of the contract is not applicable to
the scope of relevant standards such as inventory, fixed assets or intangible assets, and the
following conditions are met at the same time, it shall be recognized as an asset as the cost of
contract performance:
materials, manufacturing expenses (or similar expenses), costs clearly borne by the customer and
other costs incurred solely as a result of the contract;
future;
The company amortizes the assets related to the contract cost on the same basis as the
recognition of the revenue from goods or services related to the assets, which is included in the
current profit and loss.
If the book value of an asset related to the contract cost is higher than the remaining
consideration expected to be obtained due to the transfer of goods or services related to the asset
minus the estimated cost to be incurred, the company shall make an impairment provision for the
excess and recognize it as an asset impairment loss.If the factors of impairment in the previous
period change after that, so that the remaining consideration expected to be obtained for the
transfer of goods or services related to the asset minus the estimated cost to be incurred is higher
than the book value of the asset, the original provision for asset impairment shall be reversed and
included in the current profit and loss, but the book value of the asset after the reversal shall not
exceed the book value of the asset on the reversal date assuming that no provision for impairment
is made.
（27） Contract assets and liabilities
The company lists contract assets or contract liabilities in the balance sheet according to the
relationship between the performance of performance obligations and customer payments.The
company shall present the contract assets and contract liabilities under the same contract at a net
amount after offsetting each other.
The right of the company to receive consideration from customers unconditionally (that is,
only depending on the passage of time) is listed as a receivable, and the right to receive
consideration for goods that have been transferred to customers (depending on factors other than
the passage of time) is listed as a contract asset.
The company lists the obligation to transfer goods to customers for consideration received or
receivable from customers as contract liabilities.
（28） Government subsidies
same time: (1) the company can meet the conditions attached to government subsidies; (2)
Companies receive government subsidies.If the government subsidy is a monetary asset, it shall be
measured according to the amount received or receivable.If the government subsidy is a
nonmonetary asset, it shall be measured at fair value;If the fair value cannot be obtained reliably,
it shall be measured at the nominal amount.
Government documents stipulate that government subsidies used for the purchase and
construction or the formation of long-term assets in other ways are classified as government
subsidies related to assets.If the government documents are not clear, the judgment shall be based
on the basic conditions that must be met to obtain the subsidy, and the government subsidy related
to assets shall be based on the formation of long-term assets by purchase and construction or other
means.Government subsidies related to assets shall offset the book value of related assets or be
recognized as deferred income.If the government subsidies related to assets are recognized as
deferred income, they shall be included in profits and losses by stages in a reasonable and
systematic manner within the service life of the relevant assets.Government subsidies measured in
nominal amounts are directly included in the current profits and losses.If the relevant assets are
sold, transferred, scrapped or damaged before the end of their service life, the balance of relevant
deferred income that has not yet been allocated shall be transferred to the profits and losses of the
current period of asset disposal.
income
Government subsidies other than asset related government subsidies are classified as income
related government subsidies.For government subsidies that include both asset related and income
related parts, it is difficult to distinguish between asset related or income related government
subsidies, which are classified as income related government subsidies as a whole.Government
subsidies related to income, if used to compensate for related costs or losses in subsequent periods,
shall be recognized as deferred income, and shall be included in current profits and losses or offset
related costs during the period when related costs or losses are recognized; If it is used to
compensate the relevant costs or losses incurred, it shall be directly included in the current profit
and loss or offset the relevant costs.
included in other income or offset against related costs and expenses according to the essence of
economic business. Government subsidies unrelated to the daily activities of the company shall be
included in non operating income and expenditure.
(1) If the finance allocates the discount funds to the lending bank, and the lending bank
provides loans to the company at the preferential policy interest rate, the actual amount of loans
received shall be taken as the entry value of the loans, and the relevant borrowing costs shall be
calculated according to the principal of the loans and the preferential policy interest rate.
(2) If the finance allocates the discount funds directly to the company, the corresponding
discount will be offset against the relevant borrowing costs.
（29） Deferred income tax assets and deferred income tax liabilities
basis (if the tax basis of items not recognized as assets and liabilities can be determined in
accordance with the tax law, the difference between the tax basis and its book value), the deferred
income tax assets or deferred income 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.
to be obtained to offset the deductible temporary differences.On the balance sheet date, if there is
conclusive evidence that sufficient taxable income is likely to be obtained in the future to offset
the deductible temporary differences, the deferred income tax assets not recognized in the
previous accounting periods shall be recognized.
If it is likely that sufficient taxable income will not be available to offset the benefits of deferred
income tax assets in the future, the book value of deferred income tax assets shall be written down.
When it is likely to obtain sufficient taxable income, the amount written down will be reversed.
profit and loss as income tax expenses or income, but do not include the income tax arising from
the following circumstances: (1) business merger; (2) Transactions or events directly recognized
in owner's equity.
income tax assets and deferred income tax liabilities at the net amount after offset: (1) it has the
legal right to settle the current income tax assets and current income tax liabilities at the net
amount; (2) Deferred income tax assets and deferred income tax liabilities are related to the
income tax levied by the same tax collection and management department on the same taxpayer or
on different taxpayers, but in the future, during the period when each important deferred income
tax asset and deferred income tax liability are reversed, the taxpayers involved intend to settle the
current income tax assets and current income tax liabilities at a net amount, or obtain assets and
settle debts at the same time.
（30） Leasing
On the beginning date of the lease term, the company recognizes the lease with a lease term
of no more than 12 months and no purchase option as a short-term lease;Leases with lower value
when a single leased asset is a new asset are recognized as low value asset leases. If the company
sublets or expects to sublet the leased assets, the original lease is not recognized as a low value
asset lease.
For all short-term leases and low-value asset leases, the company includes the amount of
lease payments in the cost of related assets or current profit and loss on a straight line basis during
each period of the lease term.
In addition to the above-mentioned short-term leases and low-value asset leases with
simplified treatment, the company recognizes the right to use assets and lease liabilities for the
lease on the beginning date of the lease term.
(1) Right of use assets
The right to use assets are initially measured at cost, which includes: 1) the initial
measurement amount of lease liabilities; 2) For the lease payment paid on or before the beginning
date of the lease term, if there is a lease incentive, the relevant amount of the lease incentive that
has been enjoyed shall be deducted; 3) Initial direct costs incurred by the tenant; 4) The cost
expected to be incurred by the lessee for the demolition and removal of the leased assets, the
restoration of the premises where the leased assets are located, or the restoration of the leased
assets to the agreed state of the lease terms.
The company depreciates the right to use assets according to the straight line method.If it can
be reasonably determined that the ownership of the leased assets will be obtained at the expiration
of the lease term, the company shall make depreciation within the remaining service life of the
leased assets.If it is impossible to reasonably determine that the ownership of the leased assets can
be obtained at the expiration of the lease term, the company shall make depreciation within the
shorter of the lease term and the remaining service life of the leased assets.
(2) Lease liabilities
On the beginning date of the lease term, the company recognizes the present value of the
unpaid lease payment as a lease liability.When calculating the present value of the lease payment,
the embedded interest rate of the lease shall be used as the discount rate. If the embedded interest
rate of the lease cannot be determined, the incremental borrowing rate of the company shall be
used as the discount rate. The difference between the lease payment and its present value shall be
regarded as unrecognized financing expenses, and the interest expenses shall be recognized at the
discount rate of the present value of the lease payment during each period of the lease term and
included in the current profit and loss. The amount of variable lease payments not included in the
measurement of lease liabilities is included in the current profit and loss when actually incurred.
After the beginning date of the lease term, when the substantial fixed payment changes, the
estimated amount payable of the guarantee residual value changes, the index or ratio used to
determine the lease payment changes, the evaluation results or actual exercise of the purchase
option, renewal option or termination option changes, the company remeasures the lease liabilities
according to the present value of the changed lease payment, and adjusts the book value of the
right of use assets 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 shall be included in
the current profit and loss.
On the lease beginning date, the company classifies leases that substantially transfer almost
all the risks and rewards related to the ownership of the leased assets as financial leases, except for
operating leases.
(1) 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 expenses incurred are
capitalized and apportioned on the same basis as the recognition of rental income, which are
included in the current profit and loss by stages.The variable lease payments obtained by the
company related to operating leases that are not included in the lease receipts are included in the
current profit and loss when actually incurred.
(2) Finance lease
On the beginning date of the lease term, the company recognizes the financing lease
receivables according to the net amount of the lease investment (the sum of the unsecured residual
value and the present value of the lease receipts not yet received on the beginning date of the lease
term discounted at the embedded interest rate of the lease), and terminates the recognition of the
financing lease assets.During each period of the lease term, the company calculates and recognizes
interest income according to the interest rate embedded in the lease.
The amount of variable lease payments obtained by the company that are not included in the
measurement of net lease investment shall be included in the current profit and loss when actually
incurred.
（31） Changes in significant accounting policies and accounting estimates
During the reporting period, the company did not change any important accounting policies.
During the reporting period, the company did not change important accounting estimates.
（1） Main taxes and tax rates
Taxes Tax basis Tax rate
The output tax shall be calculated on the basis
of the income from the sale of goods and
taxable services calculated in accordance with
value added tax the provisions of the tax law. After deducting 9%, 6%, 5%, 3%
the input tax allowed to be deducted in the
current period, the difference shall be the
value-added tax payable
Calculated and
Value-added amount arising from the transfer of paid according to
Land value-added state-owned land use rights and property rights of the excessive
tax aboveground buildings and other attached objects progressive tax rate
with compensation of value-added
amount
In case of ad valorem collection, 1.2% of the
residual value of the original value of the property
Property taxes 1.2%, 12%
after deducting 30% at a time;If it is levied from
rent, it shall be paid at 12% of the rental income
Urban maintenance
and construction Turnover tax actually paid 7%
tax
Education
Turnover tax actually paid 3%
surcharge
Local education
Turnover tax actually paid 2%
surcharge
Corporate income
Taxable income 25%, 20%, 16.5%
tax
Explanation of enterprise income tax rate of taxpayers with different tax rates
Name of taxpayer Income tax rate
Shenzhen huazhan Construction Supervision Co., Ltd. and
Shantou Special Economic Zone Songshan Real Estate Development 20%
Co., Ltd
Subsidiaries incorporated in Hong Kong 16.5%
Other taxpayers other than the above 25%
（2） Tax breaks
According to the announcement of the General Administration of Taxation of the Ministry of
Finance on preferential income tax policies for small and micro enterprises and individual
businesses (announcement No.12 of the General Administration of Taxation of the Ministry of
Finance in 2023), the part of the annual taxable income of small and micro profit enterprises that
does not exceed 1 million yuan shall be included in the taxable income at a reduced rate of 25%,
and the enterprise income tax shall be paid at a tax rate of 20%.The implementation period is from
January 1, 2023 to December 31, 2027. The enterprise income tax rate of Shenzhen huazhan
Construction Supervision Co., Ltd. (hereinafter referred to as huazhan supervision) and
Shantou Special Economic Zone Songshan Real Estate Development Co., Ltd. (hereinafter
referred to as Shantou Songshan), subsidiaries of the company, shall be subject to the
preferential tax rate of 20% for small and low profit enterprises.
（1） Notes to consolidated balance sheet items
(1) Details
Projects Closing balance Beginning balance
Cash on hand 19,892.83 38,975.98
bank deposit 284,666,632.21 526,814,068.83
Other monetary funds 2,389,680.55
Total 284,686,525.04 529,242,725.36
Including: total amount deposited abroad 4,242,440.12 4,660,706.04
(2) Other instructions
As of December 31, 2025, the restricted funds in bank deposits were 5,794,604.17 yuan, of
which 5,674,439.78 yuan was the deposit for the construction of public facilities projects in and
around the urban renewal project in Longgang District, Shenzhen, 70,010.20 yuan was the
suspension of accounts and payments, and 50,154.19 yuan was the deposit for projects.
Projects Closing balance Beginning balance
Projects Closing balance Beginning balance
Financial assets classified as at fair value through
profit or loss
Among them: Fund 1,050,256,058.41 987,801,938.51
Total 1,050,256,058.41 987,801,938.51
(1) Details
Projects Closing balance Beginning balance
Bank acceptance bill
Commercial acceptance bill 100,000.00
Total 100,000.00
(2) Provision for bad debts
Closing balance
Book balance Bad debt provision
Types
Provision book value
Proportion
money money Proportion
(%)
(%)
Provision for bad debts by
portfolio
Including: bank acceptance bill
Commercial acceptance
bill
Total
(1) Aging
Aging Closing balance Beginning balance
Within 1 year 35,522,470.19 46,635,449.13
More than 5 years 21,125,636.89 21,078,733.20
Total 87,359,391.85 99,591,789.55
Less: bad debt provision 42,461,308.11 42,918,994.03
Aging Closing balance Beginning balance
Total book value 44,898,083.74 56,672,795.52
(2) Provision for bad debts
Closing balance
Book balance Bad debt provision
Types
Provision book value
Proportion
Amount money Proportion
(%)
(%)
Single provision for bad debts 24,613,872.70 28.18 24,613,872.70 100.00
Provision for bad debts by
portfolio
Total 87,359,391.85 100.00 42,461,308.11 48.61 44,898,083.74
(Continued)
Beginning balance
Book balance Bad debt provision
Types
Provision book value
Proportion
money money Proportion
(%)
(%)
Single provision for bad debts 24,983,383.25 25.09 24,983,383.25 100.00
Provision for bad debts by
portfolio
Total 99,591,789.55 100.00 42,918,994.03 43.09 56,672,795.52
Beginning balance Closing balance
Company
name Bad debt Bad debt Provision Basis of
Book balance Book balance
provision provision ratio (%) provision
Agent import Not
and export expected
business to be
payment recovered
Not
Long term
expected
uncollected 10,084,109.60 10,084,109.60 10,084,109.60 10,084,109.60 100.00
to be
house sales
recovered
Accounts Not
receivable of expected
subsidiaries to be
suspended recovered
Not
Other
expected
customer 1,009,962.19 1,009,962.19 640,451.64 640,451.64 100.00
to be
payments
recovered
Sub total 24,983,383.25 24,983,383.25 24,613,872.70 24,613,872.70 100.00
Closing balance
Projects
Book balance Bad debt provision Provision ratio (%)
Receivables from
other customer
Closing balance
Projects
Book balance Bad debt provision Provision ratio (%)
portfolios
Sub total 62,745,519.15 17,847,435.41 28.44
Current change amount
Beginning
Projects Withdrawal Write Closing balance
balance Provision other
or reversal off
Single
provision for 24,983,383.25 369,510.55 24,613,872.70
bad debts
Provision for
bad debts by 17,935,610.78 88,175.37 17,847,435.41
portfolio
Total 457,685.92
(4) Top 5 accounts receivable and contract assets
Proportion
in the total Provision for
Closing balance
balance of bad debts of
accounts accounts
Company name receivable receivable and
and contract provision for
Accounts
Contract assets Sub total assets at the impairment of
receivable
end of the contract assets
period (%)
Shenzhen Hongteng
Investment
Management Co., Ltd 11,789,376.23 837,624.28 12,627,000.51 10.52 12,627,000.51
Shenzhen Guangming
construction
engineering No. 1
Construction
Engineering Co., Ltd 1,544,468.13 7,733,431.57 9,277,899.70 7.73 662,029.13
Shenzhen
Construction
Engineering Group
Co., Ltd 5,974,806.41 2,980,784.42 8,955,590.83 7.46 1,409,486.39
Jiangsu Huajian
Construction Co., Ltd.
Shenzhen Branch 4,308,688.79 3,624,467.86 7,933,156.65 6.61 354,132.67
Shenzhen Zhaoyang
Real Estate Co., Ltd 7,650,272.25 7,650,272.25 6.38 229,508.17
Total 31,267,611.81 15,176,308.13 46,443,919.94 38.71 15,282,156.86
(5) Other instructions
As of December 31, 2025, the factoring balance of accounts receivable transferred but not
derecognized was 7,379,890.15 yuan.
(1) Aging
Closing balance Beginning balance
Prov
Provis
ision
Aging ion
Proportio Proporti for
Book balance for book value Book balance book value
n (%) on (%) impa
impair
irme
ment
nt
Within 1
year
More than 3
years
Total 31,588.45 100.00 31,588.45 1,201,106.21 100.00 1,201,106.21
(2) Top 5 prepayments
Prepayment
Company name Book balance Proportion of
balance (%)
China Telecom Corporation Limited Shenzhen Branch 19,679.83 62.30
Guangdong Jianye Testing and Identification Co., Ltd 11,130.00 35.23
Shenzhen Shenlv International Tourism Development Co.,
Ltd
Other 550.00 1.74
Sub total 31,588.45 100.00
(1) Nature and classification of payments
Nature of payment Closing balance Beginning balance
Portfolio of receivables from related parties 850,579,354.54 161,393,309.25
Portfolio of receivables from government
departments
Employee reserve portfolio receivable 112,443.24 533,912.40
Collection and payment portfolio receivable 596,591.68 787,071.98
Other receivables portfolio 193,464,111.43 37,783,095.18
Total 1,044,917,960.89 203,517,226.53
Less: bad debt provision 297,017,469.37 196,079,185.70
Total book value 747,900,491.52 7,438,040.83
(2) Aging
Aging Closing balance Beginning balance
Within 1 year 6,291,824.79 4,132,917.44
Aging Closing balance Beginning balance
More than 5 years 1,010,754,204.74 185,780,543.93
Total 1,044,917,960.89 203,517,226.53
Less: bad debt provision 297,017,469.37 196,079,185.70
Total book value 747,900,491.52 7,438,040.83
(3) Provision for bad debts
Closing balance
Book balance Bad debt provision
Types
Provision book value
Proportion
money money Proportion
(%)
(%)
Single provision for bad debts 1,037,381,783.48 99.28 296,662,485.14 28.60 740,719,298.34
Provision for bad debts by
portfolio
Sub total 1,044,917,960.89 100.00 297,017,469.37 28.42 747,900,491.52
(Continued)
Beginning balance
Book balance Bad debt provision
Types
Provision book value
Proportion
money money Proportion
(%)
(%)
Single provision for bad debts 190,176,205.84 93.44 189,807,225.64 99.81 368,980.20
Provision for bad debts by
portfolio
Sub total 203,517,226.53 100 196,079,185.70 96.35 7,438,040.83
Beginning balance Closing balance
Company
name Bad debt Bad debt Provision Basis of
Book balance Book balance
provision provision ratio (%) provision
Guangdong
Jianbang
group
(Huiyang) Not
Industrial Co., expected
Ltd. to be
(hereinafter recovered
referred to as
Jianbang
company)
Beginning balance Closing balance
Company
name Bad debt Bad debt Provision Basis of
Book balance Book balance
provision provision ratio (%) provision
Not
Great Wall
expected
(Vancouver) 89,035,748.07 89,035,748.07 89,035,748.07 89,035,748.07 100.00
to be
Inc
recovered
Not
expected
Baili Co., Ltd 19,393,335.84 19,393,335.84 19,363,348.69 19,363,348.69 100.00
to be
recovered
Not
Burkton
expected
Australia 12,559,290.58 12,559,290.58 12,559,290.58 12,559,290.58 100.00
to be
Limited
recovered
Guangdong
Huizhou Not
Luofushan expected
mineral water to be
beverage Co., recovered
Ltd
Xi'an Xinfeng Not
Property expected
Trading Co., to be
Ltd recovered
Shenzhen
Not
Shenxi
expected
building 7,660,529.37 7,660,529.37 7,660,529.37 7,660,529.37 100.00
to be
decoration
recovered
company
Beijing
Not
Shenfang
expected
Property 6,905,673.69 6,533,817.09 6,905,673.69 6,533,817.09 94.62
to be
Management
recovered
Co., Ltd
Not
expected
Baoan mall 6,343,030.65 6,343,030.65 6,343,030.65 6,343,030.65 100.00
to be
recovered
Not
Shenzhen
expected
Nanyang 3,168,721.00 3,168,721.00 3,168,721.00 3,168,721.00 100.00
to be
Hotel Co., Ltd
recovered
Shenzhen Not
Runhua Auto expected
Trading to be
Company recovered
Shenzhen Not
local building expected
materials to be
company recovered
Not
expected
Junxinhe 2,800,000.00 2,800,000.00 2,800,000.00 2,800,000.00 100.00
to be
recovered
Harbin Power
Not
District Xinle
expected
feed 1,970,000.00 1,970,000.00 1,970,000.00 1,970,000.00 100.00
to be
processing
recovered
factory
Not
expected
Simo 1,868,735.45 1,868,735.45 1,868,735.45 1,868,735.45 100.00
to be
recovered
Beginning balance Closing balance
Company
name Bad debt Bad debt Provision Basis of
Book balance Book balance
provision provision ratio (%) provision
Sub total 176,662,203.07 176,290,346.47 1,019,901,305.58 279,197,934.36 27.37
Closing balance
Portfolio name
Book balance Bad debt provision Provision ratio (%)
Portfolio of receivables
from related parties
Portfolio of receivables
from government 165,460.00
departments
Employee reserve portfolio
receivable
Collection and payment
portfolio receivable
Other receivables portfolio 4,413,297.74 282,378.26 6.40
Sub total 7,536,177.41 354,984.23 4.71
(4) Changes in bad debt reserves
Stage 1. Stage 2. Stage 3.
Expected credit
Expected credit loss for the
Projects Next 12 months Total
loss for the whole whole duration
Expected credit
duration (no credit (credit
loss
impairment) impairment has
occurred)
Beginning balance 209,559.52 857,709.31 195,011,916.87 196,079,185.70
Beginning balance
—— —— ——
in current period
--Move to phase 2
--Move to phase 3
--Back to phase 2
--Back to phase 1
Current provision 101,818,165.64 101,818,165.64
Recovered or
reversed in the 55,149.32 489,460.51 544,609.83
current period
Current write off
Other changes -335,272.14 -335,272.14
Closing balance 154,410.20 32,976.66 296,830,082.51 297,017,469.37
Provision ratio for
bad debt reserves
at the end of the
period (%)
(5) Top 5 other receivables
Proporti
on in
Book balance at Bad debt
Company Nature of balance
the end of the Aging provision at the
name payment of other
period end of the period
receivabl
es (%)
Within
years,
Related party 2-3
Jianbang 843,296,961.67 80.70 102,965,447.05
current account years
and
more
than 5
years
More
Great Wall Related party
(Vancouver) Inc current account
years
More
Related party
Baili Co., Ltd 19,363,348.69 than 5 1.85 19,363,348.69
current account
years
Burkton More
Related party
Australia 12,559,290.58 than 5 1.20 12,559,290.58
current account
Limited years
Guangdong
Huizhou
More
Luofushan Related party
mineral water current account
years
beverage Co.,
Ltd
Sub total 974,720,517.82 93.28 234,389,003.20
(1) Details
Closing balance Beginning balance
Project
s Depreciation Depreciation
Book balance book value Book balance book value
reserve reserve
developm
ent cost
Develop
products
Inventory 103,023.47 38,891.91 64,131.56 273,224.31 38,891.91 234,332.40
Total 1,153,978,849.41 54,619,230.16 1,099,359,619.25 4,403,473,942.54 766,633,713.20 3,636,840,229.34
(2) Inventory depreciation reserve
Increase in
Decrease in current period Closing balance
current period
Projects Beginning balance
Provis Reversal or
other Others [note]
ion write off
development
cost
Increase in
Decrease in current period Closing balance
current period
Projects Beginning balance
Provis Reversal or
other Others [note]
ion write off
Develop
products
Inventory 38,891.91 38,891.91
Total 766,633,713.20 227,372.86 711,787,110.18 54,619,230.16
[note] Jianbang company was taken over by the bankruptcy administrator for bankruptcy
liquidation on November 30, 2025, and will no longer be included in the scope of consolidation
from November 30, 2025. The provision for inventory depreciation will decrease with the release
of Jianbang company.
or write off of inventory depreciation reserves in the current period
Reversal of
Write off inventory
inventory
Determining net realisable value depreciation
Projects depreciation
Specific basis Reasons for
Reasons for
preparation
preparation
The net realizable
The estimated selling price of value of inventory Inventory
inventory minus the estimated with provision for consumption/sale with
development
cost to be incurred at completion, inventory provision for
cost
the estimated selling expenses depreciation in inventory depreciation
and related taxes previous periods in the current period
increased
The net realisable value is The net realizable
determined by the amount of the value of inventory Inventory
estimated selling price of the with provision for consumption/sale with
Develop
relevant developed products inventory provision for
products
minus the product cost, the depreciation in inventory depreciation
estimated selling expenses and previous periods in the current period
the relevant taxes and fees increased
The net realisable value is The net realizable
determined by the amount of the value of inventory Inventory
estimated selling price of the with provision for consumption/sale with
Inventory relevant inventory goods minus inventory provision for
the cost of the products, the depreciation in inventory depreciation
estimated selling expenses and previous periods in the current period
the relevant taxes and fees increased
(3) Capitalization of borrowing costs
Included in closing balance Interest Calculation standard and
Projects Capitalization amount of capitalization rate basis of capitalization
borrowing costs (%) amount
Calculated according to the
Guangming
Li
loan contract
Sub total 2,206,417.88 4.06
(4) Other instructions
Start Estimat Estimated Provision for
entry name Beginning balance Closing balance
time ed time total depreciation at the
for investment end of the period
complet (10000
ion yuan)
Lin Xinyuan 2021 300,000.00 2,247,771,298.55
Shantou
Xinfeng 28,291,908.10 28,291,908.11
tower
Sub total 300,000.00 2,276,063,206.65 28,291,908.11
entry name Time for Beginning Increase in current Decrease in current Closing balance Closing decline
completio balance period period Price reserve
n
Guangming Li 2024 1,432,471,630.58 3,603,133.08 971,685,098.89 464,389,664.77
Tianyuewan 28,917,964.91
phase II
Tianyuewan
phase I 2017 191,139,379.80 6,426,489.82 184,712,889.98 24,890,553.23
Golden Leaf
Island Haitian 1997 39,999,534.04 960.31 40,000,494.35 771,820.11
Pavilion
Tsui Lam Yuen 2018 7,696,703.10 816,399.26 8,513,102.36
Yue King
Oriental 2014 6,121,027.07 6,121,027.07
Golden Leaf
Island phase 10 2010 5,641,278.54 57,279.71 5,698,558.25
Golden Leaf
Island phase 11 2008 2,222,776.30 16,234.22 2,239,010.52
Beijing Xinfeng
tower 304,557.05 304,557.05
Whampoa Estate
Sub total 2,127,137,511.58 6,473,416.73 1,008,027,010.48 1,125,583,917.83 54,580,338.25
(1) Details
Closing balance Beginning balance
Projects
Provision for Provision for
Book balance book value Book balance book value
impairment impairment
Completed
and
unsettled 32,613,380.97 3,578,124.69 29,035,256.28 32,059,525.05 1,170,801.96 30,888,723.09
project
funds
Total 32,613,380.97 3,578,124.69 29,035,256.28 32,059,525.05 1,170,801.96 30,888,723.09
(2) Provision for impairment
Closing balance
Book balance Provision for impairment
Types
Provision book value
Proportion
money money Proportion
(%)
(%)
Provision for impairment by
portfolio
Total 32,613,380.97 100.00 3,578,124.69 10.97 29,035,256.28
(Continued)
Beginning balance
Book balance Provision for impairment
Types
Provision book value
Proportion
money money Proportion
(%)
(%)
Provision for impairment by
portfolio
Total 32,059,525.05 100.00 1,170,801.96 3.65 30,888,723.09
Closing balance
Projects Provision for
Book balance Provision ratio (%)
impairment
Construction mix 32,613,380.97 3,578,124.69 10.97
Sub total 32,613,380.97 3,578,124.69 10.97
(3) Changes in provision for impairment
Current change amount
Beginning Closing
Projects Withdrawal
balance Provision Write off other balance
or reversal
Provision for
impairment 1,170,801.96 2,407,322.73 3,578,124.69
by portfolio
Total 1,170,801.96 2,407,322.73 3,578,124.69
(1) Details
Closing balance Beginning balance
Impa
Projects Impai irme
Book balance rment book value Book balance nt book value
ready read
y
Prepaid income tax 1,310,041.90 1,310,041.90 63,654,695.18 63,654,695.18
VAT prepaid 35,023,855.49 41,955,887.75 41,955,887.75
Advance land value-
added tax 27,906,656.73
Input tax to be
deducted
Contract acquisition
cost
Advance urban
construction tax and 1,431,668.71 1,431,668.71 4,587,785.46 4,587,785.46
surcharges
Closing balance Beginning balance
Impa
Projects Impai irme
Book balance rment book value Book balance nt book value
ready read
y
other 53,992.23 53,992.23 8,975.57 8,975.57
Total 66,133,465.24 66,133,465.24 154,192,023.86 154,192,023.86
(2) Contract acquisition cost
Provision for
Beginning Increase in Current write impairment in Closing
Projects
balance current period off the current balance
period
Guangming
Li
Lin Xinyuan 1,397,895.00 1,397,895.00
Sub total 6,508,438.39 6,508,438.39
(1) Classification
Closing balance Beginning balance
Projects Provision for Book Provision for Book
Book balance Book balance
impairment value impairment value
Investments in
joint ventures
Investments in
associates
Other equity
investments
Total 220,084,700.95 220,084,700.95 220,084,700.95 220,084,700.95
(2) Details
Beginning balance Increase and decrease in the current period
Investment
gains and Other
Investee Book Provision for Additional Reduce losses comprehensive
value impairment investments investment recognized Earnings
under the adjustment
equity method
Joint venture
Guangdong
Huizhou Luofushan
mineral water
beverage Co., Ltd
Fengkai Xinghua
Hotel
Sub total 19,424,671.47
Associates
Shenzhen ronghua
Electromechanical
Beginning balance Increase and decrease in the current period
Investment
gains and Other
Investee Book Provision for Additional Reduce losses comprehensive
value impairment investments investment recognized Earnings
under the adjustment
equity method
Engineering Co.,
Ltd
Shenzhen Runhua
Auto Trading 1,445,425.56
Company
Dongyi Real Estate
Co., Ltd
Sub total 32,898,465.09
Other equity
investments
Baili Co., Ltd 201,100.00
Burkton Australia 906,630.00
Shenzhen shenfang
Department Store 10,000,000.00
Co., Ltd
Shantou Xinfeng
tower
Guangdong
Fengkai Lianfeng
cement 56,042,236.04
manufacturing Co.,
Ltd
Jiangmen Xinjiang
Real Estate Co., Ltd
Xi'an Xinfeng
Property Trading 32,840,729.61
Co., Ltd
Sub total 167,761,564.39
Total 220,084,700.95
(Continued)
Increase and decrease in the current period Closing balance
Declaration
Investee Other equity of cash Provision for Provision for
Other Book value
changes dividends impairment impairment
or profits
Joint venture
Guangdong
Huizhou
Luofushan 9,969,206.09
mineral water
beverage Co., Ltd
Fengkai Xinghua
Hotel
Sub total 19,424,671.47
Associates
Increase and decrease in the current period Closing balance
Declaration
Investee Other equity of cash Provision for Provision for
Other Book value
changes dividends impairment impairment
or profits
Shenzhen ronghua
Electromechanical
Engineering Co.,
Ltd
Shenzhen Runhua
Auto Trading 1,445,425.56
Company
Dongyi Real
Estate Co., Ltd
Sub total 32,898,465.09
Other equity
investments
Baili Co., Ltd 201,100.00
Burkton Australia 906,630.00
Shenzhen
shenfang
Department Store
Co., Ltd
Shantou Xinfeng
tower
Guangdong
Fengkai Lianfeng
cement 56,228,381.64
manufacturing
Co., Ltd
Jiangmen
Xinjiang Real 9,037,070.89
Estate Co., Ltd
Xi'an Xinfeng
Property Trading 32,840,729.61
Co., Ltd
Sub total 167,761,564.39
Total 220,084,700.95
[note] in other equity investments, the equity of subsidiaries not included in the scope of
consolidation of the company is accounted for. This subsidiary may have completed the revocation
procedures, but the company has not written off its long-term equity investment, or stopped
operating many years ago, and the company has no entity, so the company has been unable to
effectively control it.See Note 6 for details
Increase and decrease in the current period
Gains and losses
Beginning included in other
Projects Additional Reduce
balance comprehensive other
investments investment
income in the
current period
Shantou
small and
Increase and decrease in the current period
Gains and losses
Beginning included in other
Projects Additional Reduce
balance comprehensive other
investments investment
income in the
current period
medium-
sized
enterprise
financing
guarantee
Co., Ltd
Total 14,697,341.18 -125,829.37
(Continued)
Dividend
income Gains and losses included in
Projects Closing balance recognized in other comprehensive income at
the current the end of the period
period
Shantou small and
medium-sized
enterprise financing
guarantee Co., Ltd
Total 14,571,511.81 778,495.00 6,282,876.24
Houses and
Projects land use right Total
buildings
Book value
Beginning balance 1,042,937,072.97 110,807,339.45 1,153,744,412.42
Increase in current
period
in
Decrease in current
period
rate changes)
Closing balance 1,074,585,741.12 108,339,610.72 1,182,925,351.84
Accumulated depreciation
and amortization
Beginning balance 532,826,612.47 532,826,612.47
Increase in current
period
Houses and
Projects land use right Total
buildings
amortization
rate changes)
Decrease in current
period
rate changes)
Closing balance 557,323,389.37 557,323,389.37
Provision for impairment
Beginning balance 14,047,929.59 90,944,753.82 104,992,683.41
Increase in current
period
Decrease in current
period
rate changes)
Closing balance 14,047,929.59 88,919,373.71 102,967,303.30
book value
Closing book value 503,214,422.16 19,420,237.01 522,634,659.17
Beginning book value 496,062,530.91 19,862,585.63 515,925,116.54
Electronics and
Projects Houses and buildings Transport equipment Total
others
Book value
Beginning balance 99,967,911.10 7,491,729.61 8,345,607.75 115,805,248.46
Increase in current
- 572,220.99 572,220.99
period
Decrease in
current period
scrapping
Electronics and
Projects Houses and buildings Transport equipment Total
others
Closing balance 99,635,904.76 7,154,488.61 8,454,075.76 115,244,469.13
Accumulated
depreciation
Beginning balance 85,851,256.18 6,053,367.82 6,411,416.89 98,316,040.89
Increase in current
period
Decrease in
current period
scrapping
Closing balance 87,812,935.92 5,986,756.72 6,494,876.04 100,294,568.68
Provision for
impairment
Beginning balance
Increase in current
period
Decrease in
current period
scrapping
Closing balance
book value
Book value at the
end of the period
Beginning book
value
(1) Details
Closing balance
Project name Provision for
Book balance book value
impairment
Restoration and renovation of shenfang
Plaza Heliport
Renovation project of atrium elevator in
shenfang Plaza podium
Closing balance
Project name Provision for
Book balance book value
impairment
Total 571,822.67 571,822.67
(2) Increase and decrease of construction in progress
Other
Increase in Current
Beginning decrease in Closing
Project name current transfer in
balance the current balance
period fixed assets
period
Restoration and
renovation of
shenfang Plaza
Heliport
Renovation project of
atrium elevator in
shenfang Plaza
podium
Total 571,822.67 571,822.67
Projects software Total
Book value
Beginning balance 2,192,000.00 2,192,000.00
Increase in current period
Decrease in current period
Closing balance 2,192,000.00 2,192,000.00
Accumulated amortization
Beginning balance 2,192,000.00 2,192,000.00
Increase in current period
Decrease in current period
Closing balance 2,192,000.00 2,192,000.00
Provision for impairment
Beginning balance
Projects software Total
Increase in current period
Decrease in current period
Closing balance
book value
Book value at the end of the period
Beginning book value
Increase in
Beginning Current Other Closing
Projects current
balance amortization decrease balance
period
Renovation
fee
Others 141,603.89 59,001.60 82,602.29
Total 1,719,911.72 761,576.34 783,201.85 82,602.29 1,615,683.92
(1) Deferred income tax assets not offset
Closing balance Beginning balance
Projects Deductible Deductible Deferred
Deferred
Temporary Temporary Income tax
Income tax assets
differences differences assets
Provision for
impairment of 17,373,070.56 4,343,267.64 17,887,164.32 4,471,791.08
assets
Deductible loss 9,058,968.76 2,264,742.19 34,153,954.30 8,538,488.58
Unrealized profit
from internal 78,405,738.36 19,601,434.58
transactions
Estimated
contract cost
Total 26,432,039.32 6,608,009.83 134,285,987.79 33,571,496.94
(2) Deferred income tax liabilities not offset
Closing balance Beginning balance
Projects Taxable Deferred Taxable Deferred
Temporary Income tax Temporary Income tax
differences liabilities differences liabilities
Closing balance Beginning balance
Projects Taxable Deferred Taxable Deferred
Temporary Income tax Temporary Income tax
differences liabilities differences liabilities
Interest not due 2,778,907.00 694,726.75 2,340,498.77 585,124.68
Changes in fair value
of investments in
other equity
instruments
Total 5,350,418.84 1,337,604.71 5,037,839.95 1,259,459.98
(3) Deferred income tax assets or liabilities presented at net amount after offset
Closing balance Beginning balance
After offset After offset
Offset of Offset of
Projects deferred income Balance of deferred income Balance of
tax assets and deferred income tax assets and deferred income
liabilities tax assets or liabilities tax assets or
liabilities liabilities
deferred tax assets 469,690.21 6,138,319.62 33,571,496.94
Deferred Tax Liability 469,690.21 867,914.50 1,259,459.98
(4) Details of unrecognized deferred income tax assets
Projects Closing balance Beginning balance
deductible temporary differences 1,176,975,484.48 1,313,992,914.93
Deductible loss 142,018,237.92 94,399,508.95
Total 1,318,993,722.40 1,408,392,423.88
(5) The deductible loss of unrecognized deferred income tax assets will expire in the
following year
Year Closing balance Beginning balance Note
Total 142,018,237.92 94,399,508.95
(1) Asset constraints at the end of the period
Book balance at
Book value at the limited
Projects the end of the Reasons for restrictions
end of the period type
period
Book balance at
Book value at the limited
Projects the end of the Reasons for restrictions
end of the period type
period
Public facilities projects
in and around the urban
Monetary renewal project in
funds Longgang District,
Shenzhen - construction
funds
Monetary
funds
Monetary Stop payments, stop
funds accounts
Accounts Pledge of short-term
receivable loans
Total 13,174,494.32 12,953,097.62
(2) Restrictions on assets at the beginning of the period
Beginning book Beginning book limited
Projects Reasons for restrictions
balance value type
Construction funds for
public facilities projects
in and around the urban
renewal project in
Monetary funds 5,817,217.78 5,817,217.78 Seizure
Longgang District,
Shenzhen;Land
reclamation cost of
Guangming Li project
Monetary funds 2,306,548.48 2,306,548.48 freeze Litigation freeze
Monetary funds 50,155.58 50,155.58 Seizure Construction deposit
Stop payments, stop
Monetary funds 158,549.08 158,549.08 Seizure
accounts
Accounts Pledge of short-term
receivable loans
Litigation
Supplier litigation
inventory 234,599,800.76 161,509,611.70 preservati
preservation
on
Investment
properties
Total 385,179,577.81 213,117,814.51
Projects Closing balance Beginning balance
Accounts receivable factoring 50,000.00 1,563,000.00
Total 50,000.00 1,563,000.00
(1) Details
Projects Closing balance Beginning balance
Procurement of engineering materials and
construction
other 14,341,908.92
Total 171,738,333.04 464,488,982.30
(2) Important accounts payable with an account age of more than 1 year
Reasons for outstanding or
Projects Closing balance
carry over
Shenzhen Guangming construction
engineering No. 1 Construction 69,727,732.09 Unsettled
Engineering Co., Ltd
Shenzhen Municipal Engineering
Corporation
Sub total 85,800,844.42
Projects Closing balance Beginning balance
rent 722,042.14 1,398,988.78
Total 722,042.14 1,398,988.78
(1) Details
Projects Closing balance Beginning balance
Advance receipts 15,710,437.24 1,284,864,387.02
Advance payment 8,115,281.04 8,705,289.17
other 4,574,940.92 4,576,556.16
Total 28,400,659.20 1,298,146,232.35
(2) Important contract liabilities with an account age of more than one year
Reasons for not
Projects Closing balance
carrying forward
The handover of the
house with the
Guangming Li 2,525,427.51
owner has not been
completed
Total 2,525,427.51
(3) Collection of pre-sale real estate of important projects
Residential
Beginning Time for
entry name Closing balance signing ratio
balance completion
(%)
Guangming Li 2,525,427.51 1,270,976,624.80 End of 2024 99.74
Residential
Beginning Time for
entry name Closing balance signing ratio
balance completion
(%)
Sub total 2,525,427.51 1,270,976,624.80
(4) Reasons for significant changes in the book value of contract liabilities during the current
period
Projects Change amount Reasons for change
Guangming Li will complete the house
Guangming Li 1,268,451,197.29
handover to the owner in 2025
Sub total 1,268,451,197.29
(1) Details
Beginning Increase in Decrease in
Projects Closing balance
balance current period current period
Short-term
compensation
Post employment
benefits - defined 56,145.41 7,174,258.36 7,228,564.97 1,838.80
contribution plan
termination benefits 3,837,029.46 749,335.46 3,087,694.00
Total 22,499,368.29 76,889,644.64 66,631,670.05 32,757,342.88
(2) Details of short-term compensation
Beginning Increase in Decrease in
Projects Closing balance
balance current period current period
Salaries, bonuses,
allowances and 22,165,168.53 56,498,322.84 49,113,053.85 29,550,437.52
subsidies
Employee benefits 3,124,994.52 3,124,994.52
Social insurance
premiums
Including: medical
insurance premium
Industrial
injury insurance
Maternity
insurance
Employment
security for 968.00 968.00
the disabled
housing fund 2,232,140.90 2,232,140.90
Labor union funds and
employee education 278,054.35 1,411,985.20 1,572,666.99 117,372.56
funds
Short-term paid
absences
Other short-term
compensation
Beginning Increase in Decrease in
Projects Closing balance
balance current period current period
Sub total 22,443,222.88 65,878,356.82 58,653,769.62 29,667,810.08
(3) Details of defined contribution plan
Beginning Increase in Decrease in Closing
Projects
balance current period current period balance
Basic pension 6,505,753.23 6,505,753.23
Unemployment insurance
premiums
Enterprise annuity payment 56,145.41 313,658.54 367,965.15 1,838.80
Sub total 56,145.41 7,174,258.36 7,228,564.97 1,838.80
Projects Closing balance Beginning balance
value added tax 937,306.31 1,926,338.10
Corporate income tax 16,169,391.23 15,240,318.16
Withholding and paying individual income tax 2,139,885.12 2,614,360.35
Urban maintenance and construction tax 1,336,686.83 1,231,330.83
Land value-added tax 4,645,184.15 4,645,184.15
Property taxes 537,531.44 352,632.19
Education surcharge 577,466.85 868,224.47
Local education surcharge 368,675.16 546,470.88
other 209,955.49 129,950.88
Total 26,922,082.58 27,554,810.01
(1) Details
Projects Closing balance Beginning balance
Interest payable 16,535,277.94 16,535,277.94
Other accounts payable 127,745,131.22 544,481,375.23
Total 144,280,409.16 561,016,653.17
(2) Interest payable
Projects Closing balance Beginning balance
Projects Closing balance Beginning balance
Interest on loans from non-financial institutions
(interest payable to parent company)
Sub total 16,535,277.94 16,535,277.94
Overdue
Borrower Overdue reason
amount
Shenzhen Investment Holding Co.,
Ltd
Sub total 16,535,277.94
(3) Other accounts payable
Projects Closing balance Beginning balance
Non related party current account 26,581,817.09 177,773,291.96
Related party transactions 9,065,673.97 234,015,438.99
deposit 23,487,225.44 25,941,548.11
other 68,610,414.72 106,751,096.17
Sub total 127,745,131.22 544,481,375.23
Projects Closing balance Beginning balance
Long-term loans due within one year 33,888,347.83
Total 33,888,347.83
Projects Closing balance Beginning balance
Tax on sales to be transferred 235,112.72 114,948,818.17
Accounts receivable factoring 7,329,890.15 3,355,250.30
Total 7,565,002.87 118,304,068.47
Projects Closing balance Beginning balance
Mortgages 96,162,025.65
Less: long-term loans due within one year 33,888,347.83
Total 62,273,677.82
Increase or decrease in the current period
(decrease expressed by "-")
Proje issue
Beginning balance Provident Closing balance
cts New Divide oth Sub
fund
share nd er total
conversion
s
Total
shares
Beginning Increase in Decrease in Closing
Projects
balance current period current period balance
Capital premium (equity
premium)
Other capital reserve 420,811,873.18 420,811,873.18
Total 978,244,910.11 978,244,910.11
Current amount
Less: other
Net after tax of other comprehensive income
comprehensive
income
Less: included included in the
in other previous
Beginning comprehensive period is
Projects Closing balance
balance Amount income in the Less: Attributable Attributable transferred to
before income previous income to parent to minority retained
tax in the period and tax company shareholders income in the
current period transferred to expense after tax after tax current period
profit and loss (attributable to
in the current the parent
period company after
tax)
Other comprehensive
income that cannot be -
reclassified into profit or 31,457.34
loss
Among them: re
measurement of
changes in
defined benefit
plans
Other
comprehensive
income that
cannot be
transferred to
profit or loss
under the equity
method
Changes in fair
value of
investments in 2,439,210.13 -125,829.37 -94,372.03 2,344,838.10
other equity
instruments
Changes in fair
value of
enterprise's own
credit risk
Current amount
Less: other
Net after tax of other comprehensive income
comprehensive
income
Less: included included in the
in other previous
Beginning comprehensive period is
Projects Closing balance
balance Amount income in the Less: Attributable Attributable transferred to
before income previous income to parent to minority retained
tax in the period and tax company shareholders income in the
current period transferred to expense after tax after tax current period
profit and loss (attributable to
in the current the parent
period company after
tax)
Other comprehensive
income to be reclassified 20,621,206.18 1,536,756.74 349,071.241,187,685.50 20,970,277.42
to profit or loss
Among them: other
comprehensive
income
convertible to
profit or loss
under equity
method
Changes in fair
value of other
creditor's rights
investments
Amount of
reclassification of
financial assets
into other
comprehensive
income
Provision for
credit impairment
of other creditor's
rights investment
Cash flow
hedging reserve
Translation
difference of
foreign currency 20,621,206.18 1,536,756.74 349,071.241,187,685.50 20,970,277.42
financial
statements
Total other -
comprehensive income 31,457.34
Beginning Increase in Decrease in
Projects Closing balance
balance current period current period
Legal reserve 275,253,729.26 275,253,729.26
Total 275,253,729.26 275,253,729.26
Same period last
Projects Current period
year
Undistributed profit at the end of the previous period
before adjustment
Adjust the total undistributed profit at the beginning
of the period (increase+, decrease -)
Undistributed profit at the beginning of the later
period
Same period last
Projects Current period
year
Plus: net profit attributable to owners of the
parent company in the current period
Less: withdrawal of statutory surplus reserve
Common Stock dividends payable
Undistributed profit at the end of the period 1,323,849,441.49 1,223,893,437.74
（2） Notes to consolidated income statement items
(1) Details
Current period Same period last year
Projects
income cost income cost
Main business
income
Other business
income
Total 1,482,872,299.36 1,069,812,444.74 407,022,191.44 332,325,650.30
Among them:
revenue from
contracts with
customers
(2) Revenue breakdown
Current period Same period last year
Projects
income cost income cost
real estate 1,324,656,290.59 937,154,626.27 162,523,053.49 127,086,267.87
engineering
construction
other 14,258,403.52 8,648,303.47 15,017,931.69 8,829,683.19
Sub total 1,420,214,184.88 1,028,129,256.31 337,868,729.90 290,264,756.49
Current period Same period last year
Projects
income cost income cost
Guangdong
Province
United States 697,969.09 695,682.90
Sub total 1,420,214,184.88 1,028,129,256.31 337,868,729.90 290,264,756.49
transferred
Same period last
Projects Current period
year
Same period last
Projects Current period
year
Revenue recognized at a certain point 1,324,656,290.59 162,523,053.49
Revenue is recognized in a certain period of time 95,557,894.29 175,345,676.41
Sub total 1,420,214,184.88 337,868,729.90
(3) Information on performance obligations
Payments Types of
The nature of assumed by quality
Is it the
Important the goods the the company assurance
Time for main
Projects payment company that are provided by
performance responsible
terms undertakes to expected to be the company
person
transfer refunded to and related
customers obligations
After the
contract is
signed, the
Selling When goods Commercial Quality
contract price yes nothing
goods are delivered housing assurance
shall be
collected in
advance
When the
general Engineering
service is construction,
When
Provision of completed, it property
services are yes nothing nothing
services shall be management
provided
charged and other
according to services
the contract
(4) The revenue recognized in the current period included in the book value of contract
liabilities at the beginning of the period is 1277707691.77 yuan.
Same period last
Projects Current period
year
Land value-added tax 2,493,584.64 2,714,249.05
Property taxes 10,144,167.53 9,956,557.84
Urban maintenance and construction tax 3,728,882.75 1,012,893.50
Education surcharge 1,583,420.73 411,819.81
Local education surcharge 1,073,716.28 274,953.45
Land use tax 1,004,517.36 1,120,370.46
Stamp duty and other taxes 1,851,122.87 1,250,438.60
Total 21,879,412.16 16,741,282.71
Same period last
Projects Current period
year
Same period last
Projects Current period
year
Sales agent fees and commissions 6,225,248.69 1,863,418.96
Employee compensation 5,112,278.69 3,362,219.19
Property management fee 3,924,137.90 3,906,657.98
cost of operation 192,056.24 136,489.27
Advertising fees 2,815,526.99 2,488,123.19
other 2,505,974.90 1,407,764.34
Total 20,775,223.41 13,164,672.93
Same period last
Projects Current period
year
Employee compensation
Intermediary fees
Legal fees
Business hospitality
Depreciation
Office expenses
Repairs
Travel
Utilities
other
Total
Same period last
Projects Current period
year
Interest expense 3,760,510.21 2,586,822.94
Less: interest income 3,829,111.01 7,998,718.28
Exchange gains and losses -1,522,796.04 -465,656.39
Fees 371,261.82 374,804.61
Total -1,220,135.02 -5,502,747.12
Amount included
in non recurring
Same period
Projects Current period gains and losses
last year
in the current
period
grants related to income 753,298.54
Refund of handling fee for withholding
individual income tax
VAT plus or minus 2,627.57
Total 31,652.46 842,206.39
Same period last
Projects Current period
year
Long-term equity investment income accounted for
by equity method
Investment income from disposal of long-term
equity investment
Gains from loss of control -151,858,626.57
Investment income of trading financial assets during
the holding period
Dividend income from investment in other equity
instruments during the holding period
Total -150,943,612.67 1,346,463.59
Same period last
Projects Current period
year
Trading financial assets 16,621,332.22 18,461,736.59
Among them: income from changes in fair value
arising from financial assets designated to be
measured at fair value and whose changes are
included in the current profit and loss
Total 16,621,332.22 18,461,736.59
Same period last
Projects Current period
year
Bad debt loss of accounts receivable 457,485.01 -8,437,909.31
Bad debt losses on other receivables -2,544,245.75 -515,171.21
Total -2,086,760.74 -8,953,080.52
Same period last
Projects Current period
year
Inventory depreciation loss -374,863,314.48
Impairment loss on contract assets -2,407,322.73 -324,845.35
Total -2,407,322.73 -375,188,159.83
Included in current
Same period last non recurring
Projects Current period
year Amount of profit or
loss
Income from disposal of fixed
-5,767.73 195,840.20 -5,767.73
assets
Total -5,767.73 195,840.20 -5,767.73
Included in current
Same period last non recurring
Projects Current period
year Amount of profit or
loss
Gains from damage and
scrapping of non current assets
Fines, default income 923,846.06 2,170,800.00 923,846.06
Others 18,312.66 243,877.03 18,312.66
Total 943,633.72 2,414,677.03 943,633.72
Included in current non
Same period last
Projects Current period recurring
year
Amount of profit or loss
External donations 1,614.33 31,795.00 1,614.33
Loss on damage and scrapping
of non current assets
Late fees and liquidated
damages
other 32.50 32.50
Total 37,332.37 267,987.97 37,332.37
(1) Details
Same period last
Projects Current period
year
Current income tax expense 61,525,217.02 -4,272,520.91
Deferred Income Tax Expense 157,641.58 894,975.30
Total 61,682,858.60 -3,377,545.61
(2) Accounting profit and income tax expense adjustment process
Same period last
Projects Current period
year
Total profit 161,235,927.20 -380,973,503.91
Income tax expense calculated at the applicable tax
rate of the parent company
Impact of different tax rates on subsidiaries 132,546.07 465,029.57
Effect of adjusting income tax in previous periods -10,666,216.42 -6,533,032.37
Impact of non taxable income -4,809,834.15
Impact of non deductible costs, expenses and losses 3,748,571.21 251,199.32
Impact of using deductible losses of unrecognized
-99,497.07 -1,349,670.39
deferred income tax assets in the previous period
Impact of deductible temporary differences or
deductible losses of deferred income tax assets not 28,258,473.01 103,842,138.39
recognized in the current period
Income tax expense 61,682,858.60 -3,377,545.61
The net amount of other comprehensive income after tax is detailed in note 5 (1) 31 to the
financial statements.
（3） Notes to consolidated cash flow statement items
(1) Cash received from investment income
Same period last
Projects Current period
year
Dividend income from investment in other equity
instruments
Sub total 778,495.00 777,600.00
(2) Net cash recovered from disposal of fixed assets, intangible assets and other long-term
assets
Same period last
Projects Current period
year
Disposal of long-term assets 162,736.20 519,930.21
Sub total 162,736.20 519,930.21
(3) Net cash received from disposal of subsidiaries and other business units
Same period last
Projects Current period
year
Cash or cash equivalents received from subsidiaries
in the current period
Among them: Shenzhen Property Management
Co., Ltd
Less: cash and cash equivalents held by the company
on the date of loss of control
Among them: Shenzhen Property Management
Co., Ltd
Jianbang 58,433.25
Add: cash or cash equivalents received in the current
period from disposal of subsidiaries in previous 136,518.90 568,863.59
periods
Among them: Shenzhen Property Management
Co., Ltd
Net cash received from disposal of subsidiaries 78,085.65 568,863.59
(4) Cash paid for the purchase and construction of fixed assets, intangible assets and other
long-term assets
Same period last
Projects Current period
year
Purchase of fixed assets 572,220.99 739,401.36
Long term deferred expenses 761,576.34 807,914.47
Expenditure on Construction in progress 571,822.67
Sub total 1,905,620.00 1,547,315.83
financing activities
(1) Other cash received related to operating activities
Same period last
Projects Current period
year
Interest income 3,829,111.01 7,559,725.59
Current and other 973,811.18 8,330,076.43
Total 4,802,922.19 15,889,802.02
(2) Other cash payments related to operating activities
Same period last
Projects Current period
year
Financial Fees 371,261.82 374,804.61
Cash paid operating expenses 25,259,295.06 28,607,966.11
Current and other 27,171,214.96 22,960,703.60
Total 52,801,771.84 51,943,474.32
(3) Other cash received related to investment activities
Same period last
Projects Current period
year
Fund wealth management products 1,114,167,212.32
Total 1,114,167,212.32
(4) Other cash payments related to investment activities
Same period last
Projects Current period
year
Fund wealth management products 1,160,000,000.00 90,000,000.00
Total 1,160,000,000.00 90,000,000.00
Supplementary information Current period Same period last year
(1) Adjusting net profit to cash flow from operating
activities:
Net profit 99,553,068.60 -377,595,958.30
Plus: provision for impairment of assets 2,407,322.73 375,188,159.83
Provision for credit impairment 2,086,760.74 8,953,080.52
Depreciation of fixed assets, depreciation of right
of use assets, depletion of oil and gas assets, 28,521,195.63 28,234,946.71
depreciation of productive biological assets
Amortization of intangible assets
Amortization of long term deferred expenses 783,201.85 686,525.85
Losses on disposal of fixed assets, intangible
assets and other long-term assets (gains are 5,767.73 -195,840.20
represented with -)
Loss on scrapping of fixed assets (income
expressed with -)
Loss from changes in fair value (income is
-16,621,332.22 -18,461,736.59
represented with -)
Financial expenses (income is represented with -) 3,867,783.17 2,586,822.94
Investment loss (income expressed with -) 150,943,612.67 -1,346,463.59
Decrease in deferred income tax assets (increase
expressed with -)
Increase in deferred income tax liabilities
-360,088.14 -1,846,339.02
(decrease expressed with -)
Decrease in inventory (increase expressed with -) 967,660,785.97 -96,487,621.86
Decrease in operating receivables (increase
-752,415,765.38 -50,483,605.92
expressed with -)
Increase in operating payables (decrease
-582,303,687.54 598,936.15
expressed with -)
other
Net cash flow from operating activities -95,319,433.93 -127,403,949.79
(2) Major investment and financing activities not involving
cash receipts and payments:
Supplementary information Current period Same period last year
Debt to capital
Convertible corporate bonds due within one year
New right to use assets
(3) Net change in cash and cash equivalents:
Closing balance of cash 278,891,920.87 520,910,254.44
Less: Beginning balance of cash 520,910,254.44 859,146,413.35
Add: ending balance of cash equivalents
Less: Beginning balance of cash equivalents
Net increase in cash and cash equivalents -242,018,333.57 -338,236,158.91
(1) Details
Projects Closing balance Beginning balance
Including: cash on hand 19,892.83 38,975.98
Bank deposits ready for payment 278,872,028.04 518,481,597.91
Other monetary funds that can be used for payment at
any time
Central bank deposits available for payment
Interbank deposits
Interbank Funding
Among them: bond investment due within three months
period
Among them: restricted use of cash by the parent company or
subsidiaries within the group
Cash equivalents
(2) Cash and cash equivalents held by the company with limited scope of use
Reasons for limited scope of
Beginning
Projects Closing balance use and reasons for cash and
balance
cash equivalents
Litigation freezing, margin
Monetary funds 5,794,604.17 8,332,470.92
and other regulated accounts
Sub total 5,794,604.17 8,332,470.92
Projects Beginning Increase in current period Decrease in current period Closing balance
balance
Cash Non cash Non cash
Cash movements
movements movements movements
Short-term
borrowings
Long-term
loans
(including
long-term 96,162,025.65 96,162,025.65
loans due
within one
year)
Sub total 97,725,025.65 50,000.00 96,162,025.65 1,563,000.00 50,000.00
（4） Others
Foreign currency
Conversion Balance converted into RMB at
Projects balance at the end of
rate the end of the period
the period
Monetary funds 4,015,874.15
Of which: US $ 30,040.81 7.0288 211,150.85
HKD 4,212,399.31 0.90322 3,804,723.30
Accounts receivable 327,542.08
Of which: US $ 46,600.00 7.0288 327,542.08
Other receivables 18,689,770.43
Including: Hong Kong
dollars
Other accounts
payable
Of which: US $ 722,044.70 7.0288 5,075,107.79
HKD 18,673,981.77 0.90322 16,866,713.81
Accounts payable 142,421.23
Of which: US $ 100.00 7.0288 702.88
HKD 156,903.47 0.90322 141,718.35
(1) The company as tenant
financial statements.
detailed in note 3 (30) to the financial statements.The amount of short-term lease expenses and
low value asset lease expenses included in the current profit and loss is as follows:
Same period last
Projects Current period
year
Short-term rental 99,475.70 56,045.24
Total 99,475.70 56,045.24
Same period last
Projects Current period
year
Interest expense on lease liabilities
Total cash outflows related to leases 99,475.70 56,045.24
are detailed in note 8 (2) to these financial statements.
(2) The company as lessor
Same period last
Projects Current period
year
Rental income 62,658,114.48 69,153,461.54
Among them: income related to variable lease
payments not included in the measurement of lease
receipts
Projects Closing balance End of last year
Investment properties 522,634,659.17 515,925,116.54
Sub total 522,634,659.17 515,925,116.54
be received in the future by the irrevocable lease
Remaining term Closing balance End of last year
Within 1 year 56,116,305.50 52,670,249.55
Five years later 1,496,990.34 8,015,870.44
Total 159,913,850.86 143,139,617.93
（1） Composition of enterprise groups
Development Co., Ltd. and great wall real estate Co., Ltd. in the scope of consolidated financial
statements.
Unit: 10000 yuan
Principal Shareholding
place of ratio (%)
registered Nature of Acquisitio
Name of subsidiary business
capital business indirec n method
and place of direct
t
registration
Shenzhen shenfang
group Longgang
Development Co.,
Ltd
Great wall United
$500000 Real estate 70.00 set up
properties States
Rent and
Shenzhen Haiyan
Hotel Co., Ltd
services
Shenzhen Zhentong
Engineering Co., 1000.00 Shenzhen Construction 73.00 27.00 set up
Ltd
Shenzhen huazhan
Construction eight
Shenzhen Construction 75.00 25.00 set up
Supervision Co., hundred
Ltd
Shenzhen Lianhua
Enterprise Co., Ltd
Investment
Xinfeng Enterprise Hong
Hong Kong and 100.00 set up
Co., Ltd Kong
management
dollars
Shenzhen shenfang
five Import and
bonded trade Co., Shenzhen 95.00 5.00 set up
hundred export trade
Ltd
Shenzhen Shenfang
Investment Co., 1000.00 Shenzhen Investment 90.00 10.00 set up
Ltd
Investment
Hong
Hualin Co., Ltd Hong Kong and 100.00 set up
Kong
management
dollars
Beijing Xinfeng
real estate $10
Beijing Real estate 75.00 25.00 set up
development and million
Operation Co., Ltd
Shenzhen shenfang
Chuanqi Real
Estate 3000.00 Shenzhen Real estate 100.00 set up
Development Co.,
Ltd
(2) Other instructions
whose industrial and commercial registration has been revoked but not cancelled, namely,
Guangzhou Huangpu new estate real estate development Co., Ltd. and Xinfeng real estate
development and construction (Wuhan) Co., Ltd., two secondary subsidiaries held by Beijing
Xinfeng real estate development and Operation Co., Ltd. and Xinfeng real estate development and
construction (Wuhan) Co., Ltd. these three subsidiaries are reported on the basis of non continuing
operations.
bankruptcy administrator, which will no longer be included in the scope of consolidation from that
date.
（2） Changes in the scope of consolidation for other reasons
Decrease in consolidation scope
From the
beginning of the
Company Timing of equity Net assets at
Equity disposal period to the
name disposal disposal date
disposal date
Net profit
November 30,
Jianbang Receivership 55,460,144.68 -589,075.49
[note] In November 2025, the company received the decision of Huizhou intermediate
people's Court of Guangdong Province ((2025) yue13po no.45-1), and the court ruled that
Jianbang company was bankrupt. According to the provisions of the accounting standards for
business enterprises, Jianbang company is no longer included in the scope of the company's
consolidated financial statements.Based on the property survey and creditor's Rights Verification
of Jianbang company counted at the first creditor's meeting, the company estimates the
recoverable amount of the remaining assets of Jianbang company with reference to the sales price
of real estate and land per unit area assessed by a third party, and calculates the liquidation price
of creditor's rights attributable to the company. At the consolidated statement level, the company
estimates the fair value of other receivables of Jianbang company as 742.9747 million yuan, which
is recognized as receivables.The difference between the original book balance and the recoverable
amount of receivables offsets the investment income generated by the disposal of subsidiaries.
（3） Significant non-wholly-owned subsidiaries
Minority
Less attributable in Minority
sharehold Minority shareholders
Name of the current period shareholders at the
ers in the current period
subsidiary Gains and losses of end of the period
Sharehold Dividends declared
minority shareholders Equity balance
ing ratio
Great wall properties 30.00% -98,694.29 -22,801,466.23
Xinfeng Investment
Co., Ltd
Bestway Properties
Limited
Jianbang 49.00% -288,646.99
(1) Assets and liabilities
Closing balance
Subsidiaries Non
name Non current
current assets Total Assets current liabilities current Total liabilities
assets
liabilities
Great wall
properties
Xinfeng
Investment
Closing balance
Subsidiaries Non
name Non current
current assets Total Assets current liabilities current Total liabilities
assets
liabilities
Co., Ltd
Bestway
Properties 32,812,021.68 32,812,021.68
Limited
Jianbang
(Continued)
Beginning balance
Subsidiar
ies Non
Non current
name current assets Total Assets current liabilities current Total liabilities
assets
liabilities
Great
wall 334,066.53 19,862,585.63 20,196,652.16 113,755,645.58 113,755,645.58
properties
Xinfeng
Investme
nt Co.,
Ltd
Bestway
Propertie 1,084.11 1,084.11 33,634,035.70 33,634,035.70
s Limited
Jianbang 1,546,413,206.24 6,596,481.14 1,553,009,687.38 1,496,960,467.21 1,496,960,467.21
(2) Profit and loss and cash flow
Current period Same period last year
Subsidia
ries Total Cash flow from Total Cash flow from
Operating Operating
name Net profit comprehensive operating Net profit comprehensive operating
income income
income activities income activities
Great
wall
propertie
s
Xinfeng
Investme
-34,610.25 -64,961.29
nt Co.,
Ltd
Bestway
Propertie
-96.22 820,929.91 -713,023.86
s
Limited
Jianbang -1,918,706.24 -1,918,706.24 -2,412.86 -409,694,614.91 -409,694,614.91 -5,663,416.92
[note] Jianbang company was taken over by the bankruptcy administrator for bankruptcy
liquidation on November 30, 2025, and will no longer be included in the scope of consolidation
from November 30, 2025.
（4） Equity in joint ventures or associates
Closing balance/current Beginning balance/same
Projects
balance period last year
Joint venture
Total book value of investment
Closing balance/current Beginning balance/same
Projects
balance period last year
The total number of the following items
calculated according to the shareholding
ratio
Net profit
Other comprehensive income
Total comprehensive income
Associates
Total book value of investment
The total number of the following items
calculated according to the shareholding
ratio
Net profit
Other comprehensive income
Total comprehensive income
Unrecognized losses in
Joint ventures or Previous Cumulative at the end of
the current period
Name of joint accumulation not the period
(or net profit shared in
venture Recognised losses Unrecognized losses
the current period)
Shenzhen Xinfeng
Real Estate 2,217,955.89 2,217,955.89
Consulting Co., Ltd
Amount of government subsidies included in current profit and loss
Projects Current period Same period last year
Amount of government subsidies included in other
income
Total 753,298.54
The goal of the company's risk management is to strike a balance between risk and return,
minimize the negative impact of risk on the company's operating results, and maximize the
interests of shareholders and other equity investors.Based on this risk management objective, the
basic strategy of the company's risk management is to confirm and analyze various risks faced by
the company, establish an appropriate bottom line of risk tolerance and risk management, and
supervise various risks in a timely and reliable manner to control risks within a limited range.
The company is facing various risks related to financial instruments in its daily activities,
mainly including credit risk, liquidity risk and market risk.Management has considered and
approved policies to manage these risks, summarized below.
（1） Credit risk
Credit risk refers to the risk that one party to a financial instrument fails to perform its
obligations and causes financial losses to the other party.
(1) Evaluation method of credit risk
The company assesses on each balance sheet date whether the credit risk of the relevant
financial instruments has increased significantly since initial recognition.In determining whether
credit risk has increased significantly since initial recognition, the company considers obtaining
reasonable and evidence-based information without unnecessary additional costs or efforts,
including qualitative and quantitative analysis based on historical data, external credit risk ratings
and forward-looking information.Based on a single financial instrument or a combination of
financial instruments with similar credit risk characteristics, the company determines the change
in the risk of default during the expected duration of financial instruments by comparing the risk
of default of financial instruments on the balance sheet date with the risk of default on the initial
recognition date.
When one or more of the following quantitative and qualitative criteria are triggered, the
company believes that the credit risk of financial instruments has increased significantly:
on the balance sheet date increases by more than a certain proportion compared with the initial
recognition;
financial situation, existing or expected changes in the technical, market, economic or legal
environment, and will have a significant adverse impact on the debtor's ability to repay the
company.
(2) Definition of default and credit impaired assets
When a financial instrument meets one or more of the following conditions, the company
defines the financial asset as having defaulted, and its standard is consistent with the definition of
credit impairment:
economic or contractual considerations related to the debtor's financial difficulties.
The key parameters of expected credit loss measurement include default probability, default
loss rate and default risk exposure.Considering the quantitative analysis and forward-looking
information of historical statistics (such as counterparty rating, guarantee method, collateral
category, repayment method, etc.), the company establishes a default probability, default loss rate
and default risk exposure model.
instruments and the closing balance is detailed in notes V (1) 3, V (1) 4, V (1) 6 and V (1) 8 to
these financial statements.
The company's credit risk mainly comes from monetary funds and receivables.In order to
control the above related risks, the company has taken the following measures respectively.
(1) Monetary funds
The company deposits bank deposits and other monetary funds in financial institutions with
higher credit ratings, so its credit risk is low.
(2) Receivables and contract assets
The company regularly evaluates the credit of customers who trade by credit.According to
the credit assessment results, the company chooses to conduct transactions with recognized
customers with good credit and monitors their accounts receivable balances to ensure that the
company will not face significant bad debt risks.
As the company's accounts receivable risk points are distributed among multiple partners and
multiple customers.Credit risk is centrally managed according to customers.As of December 31,
receivable and contract assets (December 31, 2024: 40.97%) are from the top five customers in the
balance.The company does not hold any collateral or other credit enhancement for the balance of
accounts receivable and contract assets.
The maximum credit risk exposure to the company is the book value of each financial asset
in the balance sheet.
（2） Liquidity risk
Liquidity risk refers to the risk of capital shortage when the company performs its obligation
to settle by delivering cash or other financial assets.Liquidity risk may stem from the inability to
sell financial assets at fair value as soon as possible;Or because the other party is unable to repay
its contract debts;Or from debt maturing early;Or from the inability to generate the expected cash
flow.
In order to control this risk, the company comprehensively uses bill settlement, bank
borrowing and other financing means, and adopts the appropriate combination of long-term and
short-term financing methods to optimize the financing structure, so as to maintain a balance
between financing sustainability and flexibility.The company has obtained bank credit lines from a
number of commercial banks to meet working capital needs and capital expenditure.
Financial liabilities are classified by remaining maturity
Closing balance
Projects Undiscounted More than 3
book value Within 1 year 1-3 years
contract amount years
Short-term
borrowings
Accounts payable 171,738,333.04 171,738,333.04 171,738,333.04
Other accounts
payable
Other current
liabilities
Sub total 323,398,632.35 323,398,632.35 323,398,632.35
(Continued)
Beginning balance
Projects Undiscounted More than 3
book value Within 1 year 1-3 years
contract amount years
Short-term
borrowings
Beginning balance
Projects Undiscounted More than 3
book value Within 1 year 1-3 years
contract amount years
Accounts payable 464,488,982.30 464,488,982.30 464,488,982.30
Other accounts
payable
Non current
liabilities due 33,888,347.83 36,522,809.86 36,522,809.86
within one year
Other current
liabilities
Long-term
borrowings
Sub total 1,241,534,729.59 1,249,215,899.10 1,181,931,960.19 4,788,462.25 62,495,476.66
（3） Market risk
Market risk refers to the risk that the fair value or future cash flow of financial instruments
will fluctuate due to changes in market prices.Market risks mainly include interest rate risk and
foreign exchange risk.
Interest rate risk refers to the risk that the fair value or future cash flow of financial
instruments will fluctuate due to changes in market interest rates.Fixed interest rate interest
bearing financial instruments expose the company to fair value interest rate risk, and floating
interest rate interest bearing financial instruments expose the company to cash flow interest rate
risk.The company determines the ratio of fixed interest rate to floating interest rate financial
instruments according to the market environment, and maintains an appropriate portfolio of
financial instruments through regular review and monitoring.The cash flow interest rate risk faced
by the company is mainly related to the company's bank loans with floating interest rates.
As of December 31, 2025, the company's bank loans with no floating interest rate (December
interest rate changes by 50 basis points, will not have a significant impact on the company's total
profit and shareholders'equity.
Foreign exchange risk refers to the risk that the fair value or future cash flow of financial
instruments will fluctuate due to changes in foreign exchange rates.The risk of exchange rate
changes faced by the company is mainly related to the company's foreign currency monetary
assets and liabilities.For foreign currency assets and liabilities, if there is a short-term imbalance,
the company will buy and sell foreign currencies at market exchange rates when necessary to
ensure that the net risk exposure is maintained at an acceptable level.
Exchange rate risk is mainly that the company's financial position and cash flow are affected
by fluctuations in foreign exchange rates.In addition to the assets denominated in Hong Kong
dollars held by subsidiaries established in Hong Kong, there is only a small amount of Hong Kong
market investment business, and the foreign currency assets and liabilities held by the company do
not account for a significant proportion of the overall assets and liabilities.Therefore, the company
believes that the exchange rate risk is not significant.
The company's foreign currency monetary assets and liabilities at the end of the period are
detailed in note 5 (4) 1 to the financial statements.
（1） Details of fair value of assets and liabilities measured at fair value at the end of the
period
Fair value at the end of the period
Level 2
Projects Level 1 fairness Level 3 fairness
fairness
Value Value Total
Value
measurement measurement
measurement
Continuing fair value measurement
other non current financial 1,050,256,058.41 1,050,256,058.41
assets
(1) Financial assets classified as
at fair value through profit or
loss
Fund finance 1,050,256,058.41 1,050,256,058.41
(2) Financial assets designated
as measured at fair value and
whose changes are included in
the current profit and loss
Debt instruments
investments
instruments
Total assets continuously measured
at fair value
（2） Continuous and non continuous third level fair value measurement projects, valuation
technology and qualitative and quantitative information of important parameters
For fund financing that is not traded in an active market, its remaining period is relatively
short, and its fair value is determined by the sum of book value and expected income.For other
equity instrument investments that are not traded in the active market, the investment amount is
small, the net assets of the invested unit change little, and the book value is similar to the fair
value, so the book value is used to determine its fair value.
（1） Related parties
(1) Parent company of the company
Voting
Shareholding
rights of
Registered ratio of the
the parent
Parent company Place of Nature of capital parent
company
name incorporation business (10000 company to
to the
yuan) the company
company
(%)
(%)
Investment,
Shenzhen Investment Shenzhen,real estate
Holding Co., Ltd Guangdongdevelopment,
guarantee
(2) The ultimate controller of the company is the state owned assets supervision and
Administration Commission of Shenzhen Municipal People's government.
For details of the company's important joint ventures or associates, please refer to note 6 to
the financial statements.
Relationship between other related parties and
Names of other related parties
the company
Shenzhen Oriental New World Department
Shareholding company
Store Co., Ltd
Revoked but not cancelled holding subsidiaries
Shenzhen Shenxi building decoration company
not included in the merger
Shenzhen zhentongxin Electromechanical
Holding subsidiaries not included in the merger
Industry Development Co., Ltd
Revoked but not cancelled holding subsidiaries
Shenzhen Nanyang Hotel Co., Ltd
not included in the merger
Shenzhen real estate electromechanical Revoked but not cancelled holding subsidiaries
management company not included in the merger
Shenzhen Longgang Henggang Huagang Revoked but not cancelled holding subsidiaries
Industrial Co., Ltd not included in the merger
Guangdong Jianbang group (Huiyang) Holding subsidiaries not included in the merger
Industrial Co., Ltd. [note] that have entered bankruptcy proceedings
Guangzhou bobi Enterprise Management
Consulting Co., Ltd. (hereinafter referred to as Shareholders of subsidiaries
Guangzhou bobi)
Shenzhen Property Management Co., Ltd Holding subsidiary of parent company
Guoren Property Insurance Co., Ltd Holding subsidiary of parent company
Shenzhen water planning and Design Institute
Holding subsidiary of parent company
Co., Ltd
Shenzhen General Institute of Architectural
Holding subsidiary of parent company
Design and Research
Shenzhen shenfang property cleaning Co., Ltd Holding subsidiary of parent company
Shenzhen Property Management Co., Ltd.
Holding subsidiary of parent company
Shantou branch
Shenzhen Xinfeng Real Estate Consulting Co.,
Shareholding company
Ltd
Guangdong Huizhou Luofushan mineral water
Shareholding company
beverage Co., Ltd
Shenzhen Runhua Auto Trading Company Shareholding company
Great Wall (Vancouver) Inc Shareholding company
Burkton Australia Limited Shareholding company
Baili Co., Ltd Shareholding company
Shenzhen shenfang Department Store Co., Ltd Shareholding company
Shenzhen ronghua Electromechanical
Shareholding company
Engineering Co., Ltd
Xi'an Xinfeng Property Trading Co., Ltd Shareholding company
Relationship between other related parties and
Names of other related parties
the company
Fengkai Lianfeng cement manufacturing Co.,
Shareholding company
Ltd
Beijing Shenfang Property Management Co.,
Shareholding company
Ltd
[note] before November 30, 2025, Guangdong Jianbang group (Huiyang) Industrial Co., Ltd.
was a holding subsidiary of the company. On and after November 30, 2025, Guangdong Jianbang
group (Huiyang) Industrial Co., Ltd. entered bankruptcy liquidation proceedings and was taken
over by the administrator.The company loses control of it and will no longer include it in the scope
of consolidated statements. At the time of loss of control, the corresponding book balance of long-
term equity investment is 450,000,000.00 yuan, and the provision for impairment of long-term
equity investment is 450,000,000.00 yuan.
（2） Related party transactions
labor services
(1) Related party transactions for purchasing goods and receiving services
Content of related
Related parties Current period Same period last year
party transactions
Shenzhen water
planning and Design Testing services 27,169.81
Institute Co., Ltd
Guoren Property
Insurance services 265,372.43 322,255.28
Insurance Co., Ltd
Shenzhen Property
Property services 3,718,815.11 7,472,214.59
Management Co., Ltd
Shenzhen shenfang
property cleaning Co., Cleaning services 520,444.89 497,453.20
Ltd
Shenzhen Property
Management Co., Ltd. Property services 2,553,168.28 2,480,734.94
Shantou branch
Shenzhen ronghua
Electromechanical Engineering services 310,179.94
Engineering Co., Ltd
Sub total 7,367,980.65 10,799,827.82
(2) Related party transactions for the sale of goods and the provision of services
Content of related
Related parties Current period Same period last year
party transactions
Guoren Property
Leasing services 424,754.28 773,325.68
Insurance Co., Ltd
Shenzhen Property
Leasing services 5,199,896.63 5,476,586.12
Management Co., Ltd
Shenzhen shenfang
property cleaning Co., Leasing services 41,714.28 39,999.96
Ltd
Sub total 5,666,365.19 6,289,911.76
Company rentals
Confirmed in the Confirmed in the
Name of tenant Types of leased assets current period same period last year
Rental income Rental income
Shenzhen Property
Houses, buildings 5,199,896.63 5,476,586.12
Management Co., Ltd
Shenzhen shenfang
property cleaning Co., Houses, buildings 41,714.28 39,999.96
Ltd
Guoren Property
Houses, buildings 424,754.28 773,325.68
Insurance Co., Ltd
Sub total 5,666,365.19 6,289,911.76
Same period
Projects Current period
last year
Key management compensation 6,981,280.00 8,572,590.00
In order to advocate that the core employees of the group share the operating results of
market-oriented projects with the company, share operational risks, stimulate their endogenous
motivation to improve efficiency and increase efficiency, improve asset management efficiency,
and realize the preservation and appreciation of state-owned assets, the company formulated the
measures for the management of employees in linxijun project of shenfang group in July 2021.
According to the provisions of the above management measures, the follow-up will constitute a
related party transaction of joint investment with some directors, supervisors and senior executives
of the company.The company has cancelled the follow-up investment in the Lin Xinyuan project
in June 2025 and returned the follow-up investment amount in full in 2025.
（3） Receivables and payables from related parties
Closing balance Beginning balance
project
Related parties Bad debt Bad debt
name Book balance Book balance
provision provision
Accounts
receivable
Shenzhen Property
Management Co., 500,000.00 1,025,942.86
Ltd
Shenzhen Xinfeng
Real Estate 1,212,232.73 1,212,232.73 1,237,010.58 1,237,010.58
Consulting Co., Ltd
Sub total 1,712,232.73 1,212,232.73 2,262,953.44 1,237,010.58
Other
receivables
Guangdong
Jianbang group
(Huiyang) Industrial
Co., Ltd
Shenzhen Property
Management Co., 5,500.00
Ltd
Guangdong
Huizhou Luofushan
mineral water
beverage Co., Ltd
Closing balance Beginning balance
project
Related parties Bad debt Bad debt
name Book balance Book balance
provision provision
Shenzhen Runhua
Auto Trading 3,072,764.42 3,072,764.42 3,072,764.42 3,072,764.42
Company
Great Wall
(Vancouver) Inc
Burkton Australia
Limited
Baili Co., Ltd 19,363,348.69 19,363,348.69 20,251,959.02 20,251,959.02
Shenzhen shenfang
Department Store 237,648.82 237,648.82 237,648.82 237,648.82
Co., Ltd
Shenzhen ronghua
Electromechanical
Engineering Co.,
Ltd
Xi'an Xinfeng
Property Trading 8,391,333.18 8,391,333.18 8,419,205.19 8,419,205.19
Co., Ltd
Shenzhen Shenxi
building decoration 7,660,529.37 7,660,529.37 7,660,529.37 7,660,529.37
company
Shenzhen Nanyang
Hotel Co., Ltd
Beijing Shenfang
Property
Management Co.,
Ltd
Sub total 1,004,632,411.76 263,929,040.54 162,257,432.43 161,880,075.83
entry name Related parties Closing balance Beginning balance
Other accounts
payable - interest
payable
Shenzhen Investment
Holding Co., Ltd
Sub total 16,535,277.94 16,535,277.94
Accounts payable
Shenzhen Property
Management Co., Ltd
Sub total 8,127,082.22 12,658,092.83
Other accounts
payable
Shenzhen Property
Management Co., Ltd
Guoren Property
Insurance Co., Ltd
Shenzhen Oriental New
World Department Store 902,974.64 902,974.64
Co., Ltd
Fengkai Lianfeng cement
manufacturing Co., Ltd
entry name Related parties Closing balance Beginning balance
Shenzhen real estate
electromechanical 14,981,420.99 14,981,420.99
management company
Shenzhen zhentongxin
Electromechanical Industry 8,260,832.50 8,310,832.50
Development Co., Ltd
Shenzhen shenfang
Department Store Co., Ltd
Shenzhen Longgang
Henggang Huagang 165,481.09 165,481.09
Industrial Co., Ltd
Guangzhou bobi Enterprise
Management Consulting 206,903,717.13
Co., Ltd
Sub total 26,988,883.80 234,089,770.99
（1） Important commitments
As of December 31, 2025, the company does not need to disclose important commitments.
（2） Contingencies
impact
Cause of Court of Target
plaintiff defendant Note
action acceptance amount
In the bankruptcy
Guangdong
Zhongshan Huizhou Creditor's liquidation, the
Jianbang group Filing for
Shengtang intermediate rights and administrator has taken
(Huiyang) bankruptcy
Advertising Co., people's debts under over Jianbang
Industrial Co., liquidation
Ltd court review company.
Ltd
Case details: [Note 1]
Huizhou
Mingxiang
Economic Progress of the case:
Information Principal Jianbang company has
Guangdong
Consulting Co., Litigation 177.1514 entered the bankruptcy
Jianbang group Huiyang
Ltd., Huizhou over bill million yuan, liquidation procedure,
(Huiyang) District
Huiyang Hongfa payment interest and creditors can
Industrial Co., Court
industry and claim 2.8482 declare their creditor's
Ltd
Trade Co., Ltd. million yuan rights to the manager.
and Huizhou Case details: [Note 2]
jinlongsheng
Industrial Co., Ltd
Guangzhou bobi Case progress: in the
Enterprise second instance.Hengda
Management Pearl River Delta
Consulting Co., company has entered
Ltd., Evergrande the bankruptcy
Disputes
real estate group Huizhou liquidation procedure
over joint
Shenzhen Special Pearl River Delta intermediate and has declared its
venture and
Economic Zone real estate people's 743.575 creditor's rights to the
cooperative
Real Estate development Co., Court of million yuan manager.Guangzhou
development
(Group) Co., Ltd Ltd., Shenzhen Guangdong bobi and Shenzhen
real estate
Qijin Investment Province Qijin are handling
contracts
Co., Ltd. liquidation cancellation
(hereinafter and have declared their
referred to as creditor's rights to the
Shenzhen Qijin), liquidation group
and the third respectively.
person is Case details: [Note 3]
Guangdong
Jianbang group
(Huiyang)
Industrial Co.,
Ltd
Case progress: end the
enforcement
process.Jianbang
Guangdong Shenzhen
Shenzhen Special Principal and company has entered
Jianbang group Loan Luohu
Economic Zone interest the bankruptcy
(Huiyang) contract District
Real Estate 395.6885 liquidation procedure
Industrial Co., disputes People's
(Group) Co., Ltd million yuan and has declared its
Ltd court
creditor's rights to the
manager.
Case details: [Note 4]
Progress of the case:
Guangdong
Jianbang company and
Jianbang group
Hengda Pearl River
(Huiyang)
Delta company have
Industrial Co.,
entered the bankruptcy
Ltd., Guangzhou
liquidation procedure
bobi Enterprise
and have declared their
Management Huizhou
Shenzhen Special Principal and creditor's rights to the
Consulting Co., Loan Huiyang
Economic Zone interest manager
Ltd., Evergrande contract District
Real Estate 419.5229 respectively.Guangzhou
real estate group disputes People's
(Group) Co., Ltd million yuan bobi and Shenzhen
Pearl River Delta court
Qijin are handling
real estate
liquidation cancellation
development Co.,
and have declared their
Ltd. and
creditor's rights to the
Shenzhen Qijin
liquidation group
Investment Co.,
respectively.
Ltd
Case details: [Note 5]
[Note 1] on October 27, 2025, Jianbang company received the civil ruling and decision made
by Huizhou intermediate people's court, which ruled to accept the application for bankruptcy
liquidation of Jianbang company by Zhongshan Shengtang Advertising Co., Ltd. (hereinafter
referred to as Shengtang company) and appoint an administrator. For details, please refer to the
announcement on court ruling to accept the application for bankruptcy liquidation of holding
subsidiaries and the appointment of managers issued by the company on October 30, 2025
(Announcement No.: 2025-030).On December 8, 2025, the company submitted creditor's rights
declaration materials to the manager of Jianbang company in accordance with the amount of
creditor's rights confirmed by the effective civil judgment, the confirmation of creditor's rights and
debts, and the transfer certificate;The company actively participates in creditors' meetings and
exercises creditors' rights according to law.
[Note 2] Jianbang company is a subsidiary of the company holding 51% of the shares.
Because Jianbang company was unable to pay the commercial acceptance bill due in January 2022,
with a total amount of 177.1514 million yuan, the plaintiff company filed a lawsuit on the dispute
of bill payment claim with Huiyang District Court.On March 14, 2023, the court ruled that
Jianbang company would pay commercial bills and overdue interest (including litigation fees and
preservation fees of about 1.03 million yuan) to three companies within 15 days.The case seized 2
and 4 buildings in the first phase of shenfang linxinyuan project, totaling 153 units, with an
estimated price of 220 million yuan at the filing price.The plaintiff has applied to Huizhou
intermediate people's court for execution.As of December 31, 2025, in view of the bankruptcy
liquidation proceedings of Jianbang company, the manager took over Jianbang company and
handled all litigation and execution cases in a unified manner.
[Note 3] on April 30, 2021, the company signed the cooperative development agreement and
the entrusted management agreement with Guangzhou bobi, Hengda Pearl River Delta and
Jianbang company. Guangzhou bobi promised that Jianbang company would achieve a cumulative
net profit of not less than 1.25 billion yuan in 2021-2025. If Guangzhou bobi fails to fulfill its
profit commitment, it will make up the difference.On June 30, 2021, due to the acquisition of 51%
equity of Guangzhou bobi by Shenzhen Qijin, the company, Guangzhou bobi, Hengda Pearl River
Delta and Shenzhen Qijin jointly signed supplementary agreement I to the cooperative
development agreement, stipulating that Shenzhen Qijin shall be jointly and severally liable with
Hengda Pearl River Delta for the profit commitment and difference supplement of Guangzhou
bobi to the company stipulated in the cooperative development agreement.Now, the company has
filed a lawsuit because the acts of Guangzhou bobi and Hengda Pearl River Delta have
fundamentally violated the contract and have actually lost the ability to perform the contract,
resulting in the failure to achieve the purpose and expected benefits of the company's contract.On
January 8, 2025, the company received the civil judgment of the first instance of the case, and the
judgment made by Huizhou intermediate people's Court of the first instance supported some of the
company's claims.On January 22, 2025, the company appealed the unsubstantiated application.
The case was heard in the second instance on May 22, 2025 and is now in the second instance.In
view of the fact that Evergrande Pearl River Delta company has entered the bankruptcy liquidation
procedure, the company has declared its creditor's rights to the manager, while Guangzhou bobi
and Shenzhen Qijin are handling the liquidation cancellation, and the company has declared its
creditor's rights to the liquidation group respectively.
[Note 4] in 2021, the company acquired Guangzhou bobi to hold 51% of the shares of
Jianbang company. At the time of acquisition, it was agreed that the company would provide
interest bearing loans to Jianbang company according to the proportion of shares.Later, Jianbang
company borrowed money from the company twice and signed the loan agreement.After the
signing of the agreement, the company shall provide loans to Jianbang company in accordance
with the contract and fulfill its lending obligations.Now the two loans have expired, but Jianbang
company has not repaid them, which constitutes a default.As a state-controlled listed company, the
company filed this lawsuit in order to protect state-owned assets from losses.The case was judged
in the first instance in December 2023. In January 2024, the company received the civil judgment
made by the people's Court of Luohu District, Shenzhen City, Guangdong Province: it was judged
that Jianbang company would repay the principal of the loan of 344696200.26 yuan and pay
interest to the company within 10 days from the date of entry into force of the judgment;Judgment
Jianbang company shall pay liquidated damages to the company within 10 days from the effective
date of the judgment.The company has applied for compulsory execution, and received the
execution ruling on December 2, 2025, ruling to terminate the execution procedure.In view of the
fact that Jianbang company has entered the bankruptcy liquidation proceedings, the company has
declared its creditor's rights to the manager.
[Note 5] in 2021, the company acquired Guangzhou bobi to hold 51% of the shares of
Jianbang company, and agreed to provide interest bearing loans to Jianbang company according to
the proportion of shares.The latter five parties signed an agreement to stipulate that the company
will provide loans to Jianbang company, and Jianbang company will provide corresponding
collateral. At the same time, Guangzhou bobi, Hengda Pearl River Delta and Shenzhen Qi are
jointly and severally liable for 49% of the total amount of loans, interest and liquidated
damages.After the signing of the agreement, the company provided loans to Jianbang company in
accordance with the contract and fulfilled its lending obligations, but Jianbang company was
unable to repay the loans. As a state-controlled listed company, the company filed a lawsuit in this
case in order to protect state-owned assets from losses.On June 7, 2024, the company received the
judgment of victory in the first instance. On June 24, 2024, Guangzhou bobi appealed, but failed
to pay the case acceptance fee on time. In October 2024, Huizhou intermediate people's Court
issued the civil ruling, which was handled as withdrawal of the lawsuit, and the judgment of the
first instance took effect.The company applied to the court for enforcement in January 2025.In
view of the fact that Jianbang company and Hengda Pearl River Delta company have entered the
bankruptcy liquidation procedures, the company has declared creditor's rights to the manager
respectively, while Guangzhou bobi and Shenzhen Qijin are handling liquidation cancellation, and
the company has declared creditor's rights to the liquidation group respectively.
financial impact
As of December 31, 2025, the company provided mortgage loan guarantees and subsidiary
loan guarantees for commercial housing offtakers in accordance with real estate business practices,
totaling 181.6769 million yuan.
Guaranteed
loan
Guaranteed Loan guarantee
Payment Note
entity Financial institutions Due date
amount (10000
yuan)
After completing the
mortgage registration of
Buyer China Construction Bank 38.85 the real estate certificate Shang Linyuan
and handing it over to the
bank for safekeeping
After completing the
mortgage registration of
Buyer agricultural bank 151.43 the real estate certificate Tsui Lam Yuen
and handing it over to the
bank for safekeeping
After completing the
mortgage registration of Chuanqi
Buyer agricultural bank 631.55 the real estate certificate Donghu
and handing it over to the Mingyuan
bank for safekeeping
China Construction Bank,
After completing the
Bank of communications,
mortgage registration of
industrial and Commercial
Buyer the real estate certificate Tian Yue Wan
Bank of China, Bank of 1,787.98
and handing it over to the
China, Everbright Bank and
bank for safekeeping
postal savings bank
Industrial and Commercial
Bank of China, Huaxia
After completing the
Bank, agricultural and
mortgage registration of
Commercial Bank of China,
Buyer the real estate certificate Guangming Li
Agricultural Bank of China, 15,557.88
and handing it over to the
postal savings bank, China
bank for safekeeping
Merchants Bank and Bank
of China
Sub total 18,167.69
Profit distribution after balance sheet date
Based on the total share capital of 1,011,660,000 shares as of December 31, 2025, the
company intends to distribute a cash dividend of 0.35 yuan (including tax) per 10 shares to all
shareholders, totaling 35,408,100.00 yuan.
Segment information
The company's main business is to collect rental fees and management fees for the
development, construction and sale of real estate products and the rental of properties.The
company regards this business as a whole to implement management and evaluate business
results.Therefore, the company does not need to disclose segment information.Details of the
company's revenue breakdown are set out in note 5 (2) 1 to the financial statements.
（1） Notes to balance sheet items of parent company
(1) Aging
Aging Closing balance Beginning balance
Within 1 year 8,724,709.94 13,309,107.41
More than 5 years 4,450,138.62 4,450,138.62
Total book balance 15,167,772.65 17,759,246.03
Less: bad debt provision 10,324,219.89 10,559,107.12
Total book value 4,843,552.76 7,200,138.91
(2) Provision for bad debts
Closing balance
Types Book balance Bad debt provision
Proportio Provision ratio book value
money money
n (%) (%)
Single provision for
bad debts
Provision for bad
debts by portfolio
Total 15,167,772.65 100.00 10,324,219.89 68.07 4,843,552.76
(Continued)
Beginning balance
Types Book balance Bad debt provision
Proportio Provision ratio book value
money money
n (%) (%)
Single provision for
bad debts
Beginning balance
Types Book balance Bad debt provision
Proportio Provision ratio book value
money money
n (%) (%)
Provision for bad
debts by portfolio
Total 17,759,246.03 100.00 10,559,107.12 59.46 7,200,138.91
Beginning balance Closing balance
Company
name Book Bad debt Book Bad debt Provision Basis of
balance provision balance provision ratio (%) provision
Not
Long term
expected
uncollected 10,084,109.60 10,084,109.60 10,069,296.06 10,069,296.06 100.00
to be
house sales
recovered
Sub
total
Closing balance
Projects Bad debt Provision ratio
Book balance
provision (%)
Portfolio of real estate sales
receivables
Portfolio of related parties within
the scope of receivables
consolidation
Sub total 5,098,476.59 254,923.83 5.00
(3) Changes in bad debt reserves
Current change amount
Beginning
Projects Withdrawal Writ Closing balance
balance Provision other
or reversal e off
Single
provision for 10,084,109.60 110,856.38 9,973,253.22
bad debts
Provision for
bad debts by 474,997.52 124,030.85 350,966.67
portfolio
Total 10,559,107.12 234,887.23 10,324,219.89
(4) Top 5 accounts receivable and contract assets
Proportion in
Provision for
Book balance at the end of the period the total
bad debts of
balance of
accounts
accounts
Company name receivable and
Contr receivable and
Accounts provision for
act Sub total contract assets
receivable impairment of
assets at the end of
contract assets
the period (%)
Shenzhen
Huatang famous
wine City
Investment Co.,
Proportion in
Provision for
Book balance at the end of the period the total
bad debts of
balance of
accounts
accounts
Company name receivable and
Contr receivable and
Accounts provision for
act Sub total contract assets
receivable impairment of
assets at the end of
contract assets
the period (%)
Ltd
Daxing auto parts
Co., Ltd
Shenzhen Luohu
hospital group
Shenzhen
Xinfeng Real
Estate Consulting
Co., Ltd
Wang Weidong 1,200,000.00 1,200,000.00 7.91 1,200,000.00
Sub total 8,785,609.19 8,785,609.19 57.92 4,680,518.59
(1) Details
Projects Closing balance Beginning balance
Dividends receivable 24,222,722.88 29,222,722.88
Other receivables 1,856,205,185.25 1,722,328,667.65
Total 1,880,427,908.13 1,751,551,390.53
(2) Dividends receivable
Projects Closing balance Beginning balance
Shenzhen shenfang group Longgang Development
Co., Ltd
Sub total 24,222,722.88 29,222,722.88
Whether there is
Reasons for impairment and
Projects Closing balance Aging
uncollection its judgment
basis
Shenzhen shenfang group
Longgang Development 24,222,722.88 no
years payment
Co., Ltd
Sub total 24,222,722.88
(3) Other receivables
Nature of payment Closing balance Beginning balance
Nature of payment Closing balance Beginning balance
Portfolio of receivables from related parties 2,633,214,641.39 2,403,869,206.91
Portfolio of receivables from government
departments
Employee reserve portfolio receivable 93,900.00
Collection and payment portfolio receivable 500,018.15 1,002,722.31
Other receivables portfolio 144,601,238.67 142,474,366.82
Sub total book balance 2,778,481,358.21 2,547,605,656.04
Less: bad debt provision 922,276,172.96 825,276,988.39
Sub total book value 1,856,205,185.25 1,722,328,667.65
Aging Closing balance Beginning balance
Within 1 year 258,963,768.91 452,103,220.23
More than 5 years 1,631,911,767.60 1,527,036,470.19
Sub total book balance 2,778,481,358.21 2,547,605,656.04
Less: bad debt provision 922,276,172.96 825,276,988.39
Sub total book value 1,856,205,185.25 1,722,328,667.65
① Category breakdown
Closing balance
Book balance Bad debt provision
Types
Provision book value
Proportion
money money Proportion
(%)
(%)
Single provision for bad
debts
Provision for bad debts by
portfolio
Sub total 2,778,481,358.21 100.00 922,276,172.96 33.19 1,856,205,185.25
(Continued)
Beginning balance
Types
Book balance Bad debt provision book value
Provisi
on
Proporti
money money Proport
on (%)
ion
(%)
Single provision for
bad debts
Provision for bad
debts by portfolio
Sub total 2,547,605,656.04 100.00 825,276,988.39 32.39 1,722,328,667.65
② Other receivables with portfolio provision for bad debts
Closing balance
Portfolio name
Book balance Bad debt provision Provision ratio (%)
Portfolio of receivables
from related parties
Portfolio of receivables
from government 165,460.00
departments
Collection and payment
portfolio receivable
Other receivables portfolio 3,587,207.21 4.18
Sub total 1,116,048,759.62 0.02
Stage 1. Stage 2. Stage 3.
Expected credit
Expected credit loss for the
Projects Next 12 months Sub total
loss for the whole whole duration
Expected credit
duration (no credit (credit
loss
impairment) impairment has
occurred)
Beginning balance 102,289.83 825,174,698.56 825,276,988.39
Beginning balance
—— —— ——
in current period
--Move to phase 2
--Move to phase 3
--Back to phase 2
--Back to phase 1
Current provision 19,877.93 52,921.23 72,799.16
Recovered or
reversed in the
current period
Current write off
Other changes 96,926,385.41 96,926,385.41
Closing balance 122,167.76 52,921.23 922,101,083.97 922,276,172.96
Provision ratio for
bad debt reserves
at the end of the
period (%)
Proportion
Nature
in balance of Bad debt
Company of Book balance at the
Aging other provision at the
name paymen end of the period
receivables end of the period
t
(%)
Within 1
Current year, 1-2
account years, 2-3
thirty point
Jianbang of 843,296,961.67 years and 102965447.05
three five
subsidi more
ary than 5
years
Shantou Current
Huafeng Real account
more
Estate of 734,160,642.87 30.35 102,965,447.05
than 5
Development subsidi
years
Co., Ltd ary
Current
Xinfeng account
more
Enterprise Co., of 535,292,823.86 26.42
than 5
Ltd subsidi
years
ary
Shenzhen Within 1
Current
shenfang year, 1-2
account
Chuanqi Real years and
of 262,695,711.25 19.26 535,292,823.86
Estate more
subsidi
Development than 5
ary
Co., Ltd years
Current
account More
Great wall
of 104,182,848.13 than 5 9.45
properties
subsidi years
ary
Sub total 2,479,628,987.78 3.75 104,182,848.13
(1) Details
Closing balance Beginning balance
Projects
Provision for Provision for
Book balance book value Book balance book value
impairment impairment
Investments
in 1,265,520,833.00 133,339,271.15 1,132,181,561.85 1,715,520,833.00 554,754,168.86 1,160,766,664.14
subsidiaries
Investment
in
associates 11,977,845.58 11,977,845.58 11,977,845.58 11,977,845.58
and joint
ventures
Total 1,277,498,678.58 145,317,116.73 1,132,181,561.85 1,727,498,678.58 566,732,014.44 1,160,766,664.14
(2) Investments in subsidiaries
Beginning balance Increase and decrease in the current period Closing balance
reduc
Investee Add
Book value Impairment e Provision for Book value Impairment
Inves other
value ready Invest impairment value ready
tment
ment
Shenzhen
Haiyan Hotel 20,605,047.50 20,605,047.50
Co., Ltd
Shenzhen
Shenfang
Investment
Co., Ltd
Xinfeng
Enterprise Co., 556,500.00 556,500.00
Ltd
Xinfeng Real
Estate Co., Ltd
Shenzhen
Zhentong
Engineering
Co., Ltd
Great wall
properties
Shenzhen
shenfang
bonded trade
Co., Ltd
Shenzhen
huazhan
Construction 6,000,000.00 6,000,000.00
Supervision
Co., Ltd
Shenzhen
Lianhua
Enterprise Co.,
Ltd
Shenzhen
shenfang group
Longgang 30,850,000.00 30,850,000.00
Development
Co., Ltd
Beijing
Xinfeng real
estate
development
and Operation
Co., Ltd
Shantou
Huafeng Real
Estate 16,467,021.02 16,467,021.02
Development
Co., Ltd
Baili Co., Ltd 201,100.00 201,100.00
Burkton
Australia
Beginning balance Increase and decrease in the current period Closing balance
reduc
Investee Add
Book value Impairment e Provision for Book value Impairment
Inves other
value ready Invest impairment value ready
tment
ment
Shenzhen
shenfang
Department
Store Co., Ltd
Shantou
Xinfeng tower
Jianbang 28,585,102.29 421,414,897.71 28,585,102.29 450,000,000.00
Shenzhen
shenfang
Chuanqi Real
Estate
Development
Co., Ltd
Hualin Co., Ltd 8,955.10 8,955.10
Sub total 1,160,766,664.14 554,754,168.86 28,585,102.29 450,000,000.00 1,132,181,561.85 133,339,271.15
(3) Investment in associates and joint ventures
Beginning balance Increase and decrease in the current period
Investmen
t gains Other
Addition
Investee book Reduce and losses comprehensiv
Provision for al
valu investmen recognize e
impairment investme
e t d under Earnings
nts
the equity adjustment
method
Joint venture
Fengkai Xinghua
Hotel
Sub total 9,455,465.38
Associates
Shenzhen
ronghua
Electromechanic 1,076,954.64
al Engineering
Co., Ltd
Shenzhen
Runhua Auto
Trading
Company
Sub total 2,522,380.20
Total 11,977,845.58
(Continued)
Investee Increase and decrease in the current period Closing balance
Declaration
Other Provision
of cash book Provision for
equity for other
dividends or value impairment
changes impairment
profits
Joint venture
Fengkai Xinghua
Hotel
Sub total 9,455,465.38
Associates
Shenzhen ronghua
Electromechanical
Engineering Co.,
Ltd
Shenzhen Runhua
Auto Trading 1,445,425.56
Company
Sub total 2,522,380.20
Total 11,977,845.58
(4) Impairment test of long-term equity investment
expenses
Provision for
Projects book value Recoverable amount impairment in the
current period
Jianbang 28,585,102.29 28,585,102.29
Sub total 28,585,102.29 28,585,102.29
(Continued)
Determination of fair value and Key parameters and their
Projects
disposal expenses determination basis
The fair value is determined by the Estimated selling price, sales
asset based method, and the relevant volume, production cost and
Jianbang
disposal expenses are determined by other related expenses of the
the estimated disposal expense rate product
Sub total
At the end of the reporting period, the company made an provision impairment test on its
investment to Jianbang company according to its net recoverable amount, as Jianbang company
was into bankruptcy in November of 2025.
（2） Notes to items in the profit statement of the parent company
(1) Details
Current period Same period last year
Projects
income cost income cost
Current period Same period last year
Projects
income cost income cost
Main business 55,192,364.38 32,158,574.37 66,692,989.08 35,527,944.94
Other business 226,373.11 225,325.47 55,199.50
Total 55,418,737.49 32,383,899.84 66,748,188.58 35,527,944.94
Among them: revenue
from contracts with 5,371,428.57 161,228.70 8,980,139.71 1,396,009.16
customers
(2) Revenue breakdown
Current period Same period last year
Projects
income cost income cost
real estate 5,371,428.57 161,228.70 8,980,139.71 1,396,009.16
Sub total 5,371,428.57 161,228.70 8,980,139.71 1,396,009.16
Current period Same period last year
Projects
income cost income cost
Guangdong Province 5,371,428.57 161,228.70 8,980,139.71 1,396,009.16
Sub total 5,371,428.57 161,228.70 8,980,139.71 1,396,009.16
transferred
Same period last
Projects Current period
year
Revenue recognized at a certain point 5,371,428.57 8,980,139.71
Sub total 5,371,428.57 8,980,139.71
(3) Information on performance obligations
Payments Types of
The nature of assumed by quality
Is it the
Important the goods the the company assurance
Time for main
Projects payment company that are provided by
performance responsible
terms undertakes to expected to be the company
person
transfer refunded to and related
customers obligations
After the
contract is
signed, the
Selling When goods Commercial Quality
contract price yes nothing
goods are delivered housing assurance
shall be
collected in
advance
When the
general
When service is
Provision of Leasing
services are completed, it yes nothing nothing
services services
provided shall be
charged
according to
Payments Types of
The nature of assumed by quality
Is it the
Important the goods the the company assurance
Time for main
Projects payment company that are provided by
performance responsible
terms undertakes to expected to be the company
person
transfer refunded to and related
customers obligations
the contract
(4) The revenue recognized in the current period included in the book value of contract
liabilities at the beginning of the period is 6857.14 yuan.
Same period last
Projects Current period
year
Investment income from disposal of long-term
equity investment
Dividend income from investment in other equity
instruments during the holding period
Total 915,013.90 1,346,463.59
（1） Non recurring gains and losses
Projects money explain
Gains and losses on disposal of non current assets, including
the write off part of the provision for asset impairment
-151,762,085.94
Government subsidies included in the current profit and loss,
except for government subsidies closely related to the normal
business of the company, in line with national policies and
regulations, enjoyed in accordance with determined
standards, and having a sustained impact on the company's
profit and loss
In addition to the effective hedging business related to the
normal business of the company, the gains and losses from
changes in fair value arising from the holding of financial
assets and financial liabilities by non-financial enterprises
and the gains and losses arising from the disposal of financial
assets and financial liabilities
Capital occupancy fees charged to non-financial enterprises
included in current profits and losses
Gains and losses from entrusting others to invest or manage
assets
Gains and losses from entrusted loans
Loss of assets due to force majeure, such as natural disasters
Reversal of provision for impairment of receivables subject to
separate impairment test
The investment cost of subsidiaries, associates and joint
ventures obtained by the enterprise is less than the income
from the fair value of the identifiable net assets of the
invested entity at the time of obtaining the investment
Current net profit and loss of subsidiaries arising from
business combination under the same control from the
beginning of the period to the merger date
Gains and losses on non monetary asset exchange
Gains and losses on debt restructuring
One-time expenses incurred by the enterprise because the
relevant business activities are no longer sustainable, such as
expenses for resettling employees, etc
One-time impact on current profit and loss due to the
adjustment of tax, accounting and other laws and regulations
Share based payment expenses confirmed at one time due to
cancellation and modification of equity incentive plan
For cash settled share based payments, gains and losses
arising from changes in the fair value of employee salaries
payable after the vesting date
Gains and losses arising from changes in the fair value of
investment real estate measured subsequently using the fair
value model
Gains from transactions with significantly unfair transaction
prices
Gains and losses arising from contingencies unrelated to the
normal business operation of the company
Custody fee income from entrusted operation
Other non operating income and expenses other than the
above items
Other profit and loss items that meet the definition of non
recurring profit and loss
Sub total -134,200,241.83
Less: impact of enterprise income tax (the decrease of income
tax is expressed by "-")
Impact on minority shareholders' equity (after tax) -13,705.11
Net non recurring gains and losses attributable to owners of
the parent company
-134,396,920.74
the explanatory announcement on information disclosure of companies offering securities to the
public No.1 - non recurring gains and losses (revised in 2023) are defined as recurring gains and
losses
Projects money reason
Continuous occurrence in each year,
Refund of handling fee for
withholding individual income tax
recurring gains and losses
（2） Return on equity and earnings per share
Weighted average net Earnings per share (yuan/share)
Profit during the reporting period assets Basic earnings per Diluted earnings per
Yield (%) share share
Net profit attributable to ordinary
shareholders of the company
Net profit attributable to ordinary
shareholders of the company after
deducting non recurring gains and
losses
Projects Serial number Current period
Projects Serial number Current period
Net profit attributable to ordinary shareholders of the company A 99,956,003.75
Non recurring gains and losses B -134,396,920.74
Net profit attributable to ordinary shareholders of the company
C=A-B 234,352,924.49
after deducting non recurring gains and losses
Net assets at the beginning of the period attributable to ordinary
D 3,512,112,493.42
shareholders of the company
New net assets attributable to ordinary shareholders of the
E
company such as issuance of new shares or debt to equity swap
Cumulative months from the next month of new net assets to the
F
end of the reporting period
Net assets attributable to ordinary shareholders of the company
G
reduced by repurchase or cash dividend
Cumulative months from the next month of net assets reduction to
H
the end of the reporting period
other I 254,699.21
other Cumulative months from the next month of
increase or decrease in net assets to the end of the J 6
reporting period
Months during the reporting period K 12
L=D+A/2+e x f/K-G
Weighted average net assets 3,562,217,844.90
x H/K+I x J/K
Weighted average return on equity M=A/L 2.81%
Weighted average return on net assets after deducting non
N=C/L 6.58%
recurring gains and losses
(1) Calculation process of basic earnings per share
Projects Serial number Current period
Net profit attributable to ordinary shareholders of the
A 99,956,003.75
company
Non recurring gains and losses B -134,396,920.74
Net profit attributable to ordinary shareholders of the
C=A-B 234,352,924.49
company after deducting non recurring gains and losses
Total number of shares at the beginning of the period D 1,011,660,000.00
Increase in the number of shares due to the conversion of
provident fund into share capital or stock dividend E
distribution
Issuance of new shares or debt to equity swap to increase the
F
number of shares
Cumulative months from the next month after the increase of
G
shares to the end of the reporting period
Decrease in the number of shares due to repurchase H
Cumulative months from the next month after the reduction
I
of shares to the end of the reporting period
Number of share withdrawals during the reporting period J
Months during the reporting period K 12
Projects Serial number Current period
L=D+e+F X G/K-H x
Weighted average number of ordinary shares outstanding 1,011,660,000.00
I/K-J
Basic earnings per share M=A/L 0.0988
Basic earnings per share after deducting non recurring gains
N=C/L 0.2317
and losses
(2) Calculation process of diluted earnings per share
The calculation process of diluted earnings per share is the same as that of basic earnings per
share.
