Contents
I. Auditor’s Report ……………………………………………………………Page 1-7
II. Financial Statements ……………………………………………………Page 8-19
(I) Consolidated Balance Sheet ……………………………………………Page 8-9
(II) Parent Company Balance Sheet ………………………………………Page 10-11
(III) Consolidated Income Statement ………………………………………Page 12
(IV) Parent Company Income Statement …………………………………Page 13
(V) Consolidated Cash Flow Statement ……………………………………Page 14
(VI) Parent Company Cash Flow Statement ………………………………Page 15
(VII) Consolidated Statement of Changes in Equity ……………………Page 16-17
(VIII) Parent Company Statement of Changes in Equity ………………Page 18-19
III. Notes to Financial Statements ………………………………………Page 20-111
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-ChinaCertified 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
Book balance for book value
impairment
Restoration and renovation of shenfang
Plaza Heliport
Renovation project of atrium elevator in
shenfang Plaza podium
Closing balance
Project name Provision
Book balance for 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.
Shenzhen Special Economic Zone Real Estate (Group) Co., Ltd
March 18, 2026
