SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE
& PROPERTIES (GROUP) CO., LTD.
INTERIM REPORT 2023
2023-031
【August 2023】
Part I Important Notes, Table of Contents and DefinitionsThe Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,supervisors and senior management of ShenZhen Special Economic Zone Real Estate &Properties (Group) Co., Ltd. (hereinafter referred to as the “Company”) hereby guarantee thefactuality, accuracy and completeness of the contents of this Report and its summary, andshall be jointly and severally liable for any misrepresentations, misleading statements ormaterial omissions therein.Tang Xiaoping, the Company’s General Manager, Wang Jianfei, the Company’s ChiefFinancial Officer, and Zhou Hongpu, head of the Company’s financial department (equivalentto financial manager) hereby guarantee that the Financial Statements carried in this Reportare factual, accurate and complete.All the Company’s directors have attended the Board meeting for the review of this Reportand its summary.Certain descriptions about the Company’s operating plans or work arrangements for thefuture mentioned in this Report and its summary, the implementation of which is subject tovarious factors, shall NOT be considered as promises to investors. Therefore, investors andinterested parties are reminded to be sufficiently aware of the risks involved and understandthe differences between plans, forecasts and promises.The Company has no interim dividend plan, either in the form of cash or stock.This Report and its summary have been prepared in both Chinese and English. Should therebe any discrepancies or misunderstandings between the two versions, the Chinese versionsshall prevail.
Table of Contents
Part I Important Notes, Table of Contents and Definitions ...... 2
Part II Corporate Information and Key Financial Information ...... 6
Part III Management Discussion and Analysis ...... 9
Part IV Corporate Governance ...... 22
Part V Environmental and Social Responsibility ...... 23
Part VI Significant Events ...... 24
Part VII Share Changes and Shareholder Information ...... 30
Part VIII Preferred Shares ...... 34
Part IX Bonds ...... 35
Part X Financial Statements ...... 36
Documents Available for Reference
1. The financial statements with the personal signatures and stamps of the Company’s legalrepresentative, Chief Financial Officer and head of the financial department; and
2. The originals of all the documents and announcements disclosed by the Company on SecuritiesTimes, China Securities Journal and Ta Kung Pao during the Reporting Period.
Definitions
Term | Definition |
“Shenzhen SASAC” or the “Municipal SASAC” | The State-owned Assets Supervision and Administration Commission of the People’s Government of Shenzhen Municipal |
SIHC | Shenzhen Investment Holdings Co., Ltd. |
The “Company”, the “Group”, “SPG” or “we” | ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. and its consolidated subsidiaries, except where the context otherwise requires |
Shenzhen Property Management | Shenzhen Property Management Co., Ltd. |
Petrel Hotel | Shenzhen Petrel Hotel Co., Ltd. |
Zhentong Engineering | Shenzhen Zhentong Engineering Co., Ltd. |
Huazhan Construction Supervision | Shenzhen Huazhan Construction Supervision Co., Ltd. |
Jianbang Group | Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd. |
Chuanqi Real Estate Development | Shenzhen SPG Chuanqi Real Estate Development Co., Ltd. |
Part II Corporate Information and Key Financial InformationI Corporate Information
Stock name | SPG, SPG-B | Stock code | 000029, 200029 |
Stock exchange for stock listing | Shenzhen Stock Exchange | ||
Company name in Chinese | 深圳经济特区房地产(集团)股份有限公司 | ||
Abbr. (if any) | 深房集团 | ||
Company name in English (if any) | ShenZhen Special Economic Zone Real Estate&Properties (Group).co.,Ltd. | ||
Abbr. (if any) | SPG | ||
Legal representative | Tang Xiaoping |
II Contact Information
Board Secretary | Securities Representative | |
Name | Luo Yi | Hong Lu |
Address | 47/F, SPG Plaza, Renmin South Road, Luohu District, Shenzhen, Guangdong, P.R.China | 47/F, SPG Plaza, Renmin South Road, Luohu District, Shenzhen, Guangdong, P.R.China |
Tel. | (86 755)25108897 | (86 755)25108837 |
Fax | (86 755)82294024 | (86 755)82294024 |
Email address | spg@sfjt.sihc.com.cn | spg@sfjt.sihc.com.cn |
III Other Information
1. Contact Information of the Company
Indicate by tick mark whether any change occurred to the registered address, office address and their zip codes, website address,email address and other contact information of the Company in the Reporting Period.
□ Applicable ? Not applicable
No change occurred to the said information in the Reporting Period, which can be found in the 2022 Annual Report.
2. Media for Information Disclosure and Place where this Report is Kept
Indicate by tick mark whether any change occurred to the information disclosure media and the place for keeping the Company’speriodic reports in the Reporting Period.
□ Applicable ? Not applicable
The website of the stock exchange, the media and other websites where the Company’s periodic reports are disclosed, as well asthe place for keeping such reports did not change in the Reporting Period. The said information can be found in the 2022 AnnualReport.
3. Other Information
Indicate by tick mark whether any change occurred to other information in the Reporting Period.
□ Applicable ? Not applicable
IV Key Financial InformationIndicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes ? No
H1 2023 | H1 2022 | Change (%) | |
Operating revenue (RMB) | 263,616,779.07 | 366,184,498.90 | -28.01% |
Net profit attributable to the listed company’s shareholders (RMB) | -37,118,182.81 | 145,128,330.14 | -125.58% |
Net profit attributable to the listed company’s shareholders before exceptional gains and losses (RMB) | -42,468,909.15 | 17,139,162.56 | -347.79% |
Net cash generated from/used in operating activities (RMB) | -192,140,948.04 | -548,115,143.34 | 64.95% |
Basic earnings per share (RMB/share) | -0.0367 | 0.1435 | -125.57% |
Diluted earnings per share (RMB/share) | -0.0367 | 0.1435 | -125.57% |
Weighted average return on equity (%) | -0.94% | 3.66% | -4.60% |
30 June 2023 | 31 December 2022 | Change (%) | |
Total assets (RMB) | 5,453,181,740.50 | 5,689,769,802.18 | -4.16% |
Equity attributable to the listed company’s shareholders (RMB) | 3,903,638,382.72 | 4,004,240,547.70 | -2.51% |
V Accounting Data Differences under Chinese Accounting Standards (CAS) andInternational Financial Reporting Standards (IFRS) and Foreign Accounting Standards
1. Net Profit and Equity Differences under CAS and IFRS
? Applicable □ Not applicable
Unit: RMB
Net profit attributable to the listed company’s shareholders | Equity attributable to the listed company’s shareholders | |||
H1 2023 | H1 2022 | Ending amount | Beginning amount | |
Under CAS | -37,118,182.81 | 145,128,330.14 | 3,903,638,382.72 | 4,004,240,547.70 |
Adjusted as per IFRS | ||||
Under IFRS | -37,118,182.81 | 145,128,330.14 | 3,903,638,382.72 | 4,004,240,547.70 |
2. Net Profit and Equity Differences under CAS and Foreign Accounting Standards
□ Applicable ? Not applicable
No such differences for the Reporting Period.
3. Reasons for Accounting Data Differences Above
□ Applicable ? Not applicable
XI Exceptional Gains and Losses? Applicable □ Not applicable
Unit: RMB
Item | Amount | Note |
Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) | 3,750.50 | |
Government subsidies charged to current profit or loss (exclusive of government subsidies consistently given in the Company’s ordinary course of business at fixed quotas or amounts as per government policies or standards) | 123,732.31 | Government grants received |
Gain or loss on assets entrusted to other entities for investment or management | 3,638,607.35 | Change in fair value of monetary fund investments and return on investment |
Gain or loss on contingencies unrelated to the Company's normal business operations | 1,644,822.69 | |
Non-operating income and expense other than the above | -37,754.41 | |
Less: Income tax effects | 22,432.10 | |
Total | 5,350,726.34 |
Details of other gains and losses that meet the definition of exceptional gain/loss:
□ Applicable ? Not applicable
No such cases for the Reporting Period.Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the Explanatory AnnouncementNo. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss Items:
□ Applicable ? Not applicable
No such cases for the Reporting Period.
Part III Management Discussion and AnalysisI Principal Activity of the Company in the Reporting Period(I) Industry review for the Reporting PeriodIn the first half of 2023, as the economy and society fully returned to normal operations, macro policies tookeffect, and the national economy rebounded. The Central Government actively expressed support for the realestate sector to guide its healthy development. Various regulatory policies were relaxed, financing channels forreal estate companies expanded, interest rate cuts supported residential mortgages, but the policy effects weresomewhat delayed, and market confidence is expected to further recover.(II) Review of the Company’s operations in the Reporting PeriodFacing an increasingly complex external context and tougher reform and development tasks in the ReportingPeriod, the Company conscientiously implemented the decisions and arrangements of the State-owned AssetsSupervision and Administration Commission of the People’s Government of Shenzhen Municipality (MunicipalSASAC) and Shenzhen Investment Holdings Co., Ltd. (SIHC). Under the leadership of the new leadership team,SPG employees worked in unity, took concrete actions, demonstrated the Company’s resilience, and maintainedan upward development trend. The main achievements are as follows:
1. Stable and orderly operations in the core business. The Company focused on project planning, schedule, andmilestone management. Through BIM technology empowerment and adherence to high standards, we ensuredthe schedule and quality of projects under construction like SPG Guangmingli. We made full efforts to promotesales and marketing for projects. Since the opening in late April, the SPG Guangmingli project display centrehas hosted over 1,000 customers. The Donghu Mingyuan project cleared out remaining units. We strengthenedoperations of our own properties, leveraged the development of “Buildings for Shenzhen-Hong Kong SpecialtyIndustry” to promote leasing and operations for SPG Plaza’s existing properties. In the first half of the year,newly leased areas were 2,374 square meters, renewed leased areas were 10,690 square meters, and theoccupancy rate reached 74.21%. We intensified efforts to sell existing housing inventory. Properties like Floors1-2 of Guoshang Mansion and Buildings 25 and 26 of Wenjin Garden were successfully listed on The StockExchange of Hong Kong Limited.
2. Made full efforts to tap potentials and expand. We thoroughly explored internal business potentials andmanaged affiliated enterprises. The newly signed construction contracts worth RMB142 million for ZhentongEngineering. We added RMB49.775 million in online signed sales for Shantou Branch, expanded supervisionprojects by 2 for Huazhan Construction Supervision, and turned losses into profits for Petrel Hotel. Wevigorously activated internal stock resources, accelerated the land title confirmation for the “Xinfeng Building”project, and signed a transaction agreement with the counterparty for the sale of commercial land in Los
Angeles, USA. We proactively promoted land investment, tracked real estate market conditions, closelyfollowed Shenzhen land auction dynamics, and continued land expansion research.
3. Accelerated exploration of future development. To implement high-quality development requirements, wesystematically and deeply investigated the Company’s current management status and external environment,and examined and revised the Group’s “14th Five-Year” strategic plan from a higher perspective, clarifyingfuture guidelines and strategic tasks to form a framework for the “14th Five-Year” strategic plan revision. Wecontinued to strengthen tracking of the China Securities Regulatory Commission’s adjustments to optimiseequity financing policies for real estate enterprises, conducted research on future development accordingly, andstrove to achieve synergistic breakthroughs in the process of supporting the controlling shareholder’sdevelopment strategy.
4. Continuously consolidated the internal control foundation. Nearly 50 new management systems wereformulated across the Company in the first half of the year. We optimized procurement and cost control systems,managed project costs throughout the entire process, conducted in-depth risk control and internal audits oncapital usage and contract management, and continuously strengthened the internal control system foundation.Adhering to bottom-line thinking, in view of the growing risks in the industry, we made forward-lookingassessments combining our project situations to effectively prevent and resolve operational risks and safeguardstate-owned assets. We strengthened financial coordination to guarantee project development and operatingcapital needs, and persevered in production safety, petition management, public opinion monitoring and otherefforts to create a harmonious and stable environment for development.
5. Party building provided cohesive strength. We adhered to high-quality Party building to lead high-qualitydevelopment, giving full play to the Party organisation’s leadership role in “setting the direction, managing thebig picture, and ensuring implementation”. We gradually built an internal Party supervision-led “megasupervision” system, with dedicated and business supervision mutually coordinated. We implementedresponsibilities for Party management and governance, and continuously consolidated the Party buildingfoundation in basic organisations, systems, and teams. Combining practice, we carried out in-depth education,focused strengths to solve problems and promote development, used “One Brand for One Enterprise” Partybuilding brand as a carrier to pool internal strengths, and advanced the integration of Party building withbusiness management.
The Company is subject to the information disclosure requirements for the real estate industry in the Disciplinary andRegulatory Guideline No. 3 of the Shenzhen Stock Exchange for Listed Companies—Industry-specific InformationDisclosure.Cumulative land bank:
Name of project/area | Site area(0,000 ㎡) | Floor area(0,000 ㎡) | Floor area available for development(0,000 ㎡) |
Xinfeng Building in Shantou | 0.59 | 2.66 | 2.66 |
Linxinyuan Phase II | 2.57 | 7.72 | 7.72 |
Linxinyuan Phase III | 4.31 | 9.57 | 9.57 |
Linxinyuan Phase IV | 3.23 | 6.45 | 6.45 |
Total | 10.70 | 26.40 | 26.40 |
Development status of major projects:
City/region | Name of project | Location | Status | The Company’s interest | Time for commencement of construction | % developed | % constructed | Site area(㎡) | Planned floor area with plot ratio (㎡) | Floor area completed in the Current Period(㎡) | Cumulatively completed floor area (㎡) | Expected total investment (RMB’0,000) | Cumulative investment (RMB’0,000) |
Huizhou | Linxinyuan Phase I | Huiyang | Framework in construction | 51.00% | 11 June 2021 | 64% | 64.00% | 64,278 | 159,761 | 115,750 | 74,584 | ||
Shenzhen | SPG Guangmingli | Guangming District | Foundation pit being built | 100.00% | 19 January 2022 | 74% | 74.00% | 10,721 | 53,605 | 151,758 | 112,437 |
Sales status of major projects:
City/region | Name of project | Location | Status | The Company’s interest | Floor area with plot ratio (㎡) | Floor area available for sale (㎡) | Cumulatively pre-sold/sold floor area (㎡) | Floor area pre-sold/sold in the Current Period(㎡) | Pre-sale/sales revenue generate in the Current Period (RMB’0,000) | Cumulatively settled floor area (㎡) | Floor area settled in the Current Period(㎡) | Pre-sale/sales revenue settled in the Current Period (RMB’0,000) |
Shenzhen | Chuanqi Donghu Mingyuan | Luohu District | Ready for sale | 100.00% | 55,727 | 32,857 | 32,857 | 194 | 1,483 | 32,857 | 194 | 1,483 |
Shenzhen | Cuilinyuan | Longgang District | Ready for sale | 100.00% | 60,111 | 56,137 | 52,884 | 52,884 | 2,469 | |||
Shantou | Tianyuewan Phase I | Chaoyang District | Ready for sale | 100.00% | 153,470 | 160,372 | 117,734 | 2,850 | 1,656 | 105,473 | 3,818 | 2,180 |
Shantou | Tianyuewan Phase II | Chaoyang District | Ready for sale | 100.00% | 127,770 | 137,059 | 33,893 | 5,622 | 3,221 | 31,993 | 6,481 | 3,672 |
Huizhou | Linxinyuan Phase I | Huiyang District | On pre-sale | 51.00% | 159,761 | 159,761 | 2,792 | 2,236 | 2,558 |
Rental status of major projects:
Name of project | Location | Use | The Company’s interest | Rentable area (㎡) | Cumulative rented area | Average occupancy rate |
(㎡) | ||||||
Real Estate Mansion | Shenzhen | Commercial | 100.00% | 3,413.88 | 3,413.88 | 100.00% |
North Tower of Guoshang Mansion | Shenzhen | Commercial | 100.00% | 4,819.71 | 4,819.71 | 100.00% |
Petrel Building | Shenzhen | Commercial | 100.00% | 22,475.47 | 22,475.47 | 100.00% |
SPG Plaza | Shenzhen | Office building | 100.00% | 60747.69 | 32,333.08 | 53.23% |
Podium of SPG Plaza | Shenzhen | Commercial | 100.00% | 19886.3 | 16,123.49 | 81.08% |
Wenjin Garden | Shenzhen | Commercial | 100.00% | 3,531.60 | 3,531.60 | 100.00% |
Primary land development:
□ Applicable ? Not applicable
Financing channels:
Financing channel | Ending balance of financings | Financing cost range/average financing cost | Maturity structure | |||
Within 1 year | 1-2 years | 2-3 years | Over 3 years | |||
Bank loans | 161,876,610.82 | 3.70%-4.20% | 19,983,173.22 | 79,432,000.00 | 62,461,437.60 | |
Total | 161,876,610.82 | 19,983,173.22 | 79,432,000.00 | 62,461,437.60 |
Development strategy and operating plan for the coming year:
In the second half of the year, the Company will anchor its annual key tasks and goals, focusing on completingthe clearance of existing housing inventory, the construction and sales of the Guangmingli project, advancingthe construction of “Buildings for Shenzhen-Hong Kong Specialty Industry”, and exploring new paths forfuture development. We will exert all efforts to “maintain sales, reduce inventory, prevent fluctuations, expandgrowth, improve quality, and enhance vitality”, effectively tackling the challenges of future development.
1. Prioritise “Sales Volume”. The Company will seize the market window, control marketing milestones, andstrengthen marketing’s coordination and guidance for project sales across its affiliated enterprises. Through amultidimensional approach encompassing market analysis, product positioning, target audience identification,channel integration, and atmosphere enhancement, we will diversify customer acquisition and conversionmethods. We are fully committed to achieving the annual sales target for the Guangmingli project and drivingsales for projects such as Tianyuewan by the Shantou Branch.
2. Focus on “Reducing Inventory”. The Company will align with market demand, leverage resources fromagency platforms, refine broad-based marketing incentives, explore self-developed customer channels, andstrive to achieve the annual sales target for legacy projects. We will strengthen intermediary channelengagement and promotion, facilitating transactions for properties such as Guoshang, Yitai, and Wenjin Garden.Benchmarking against the market, we will proactively enhance existing products, intensify self-owned propertyleasing efforts, and endeavour to fulfill the overall annual task target.
3. Expand “Sales Growth”. The Company will consistently drive the activation of internal assets and unearthoperational potential, continually expanding resources and performance in the core business. Following theannual task objectives set at the beginning of the year, we will focus on managing affiliated enterpriseoperations, maximizing potential, and striving to achieve the annual revenue target. Efforts will be made to
activate legacy internal resources and bolster core business reserves. We will vigorously advance the revisionand development of the “14th Five-Year” strategic plan, guiding future corporate reform and development.
4. Enhance “Quality”. The Company will concentrate on elevating operational planning capabilities, centeringon high-efficiency coordination of projects, cycles, and expertise across the entire spectrum of our core business.Operating plans will serve as the main thread, aiming for development progress and quality, focusing on keymilestones, optimizing project organisation, and controlling development timelines to improve operationalquality and efficiency. A comprehensive optimisation of the marketing system will be pursued from dimensionssuch as market research, product positioning, customer analysis, and channel integration, continuouslyenhancing marketing capabilities for new and existing projects. The construction of the organisational systemand supportive capacity will be reinforced, actively securing specialised talents for future development,enhancing incentive and restraint mechanisms, and unlocking internal value creation.
5. Mitigate “Variable Risks”. The Company will thoroughly assess potential risks in investment and projectexpansion, establish risk assessment and early warning mechanisms, and minimise future project risks. We willproactively address and mitigate potential risks, explore financing channels, and ensure project fundingrequirements are met.
6. Boost “Energy”. The Company will persistently uphold its Party building responsibilities, strengthen ethicaland clean governance, safeguard ideological positions, promote the deep integration of Party building andoperations, and harness the “red engine” of Party building to drive high-quality development. We will translatethe results of theme education into tangible work outcomes, leveraging the “One Brand for One Enterprise”Party building brand to explore new paths for integrating Party building and business, fortify our “battlefortress”, and strive to be the “pioneers of challenges”, continuously harnessing the guiding and safeguardingpower of Party building.
Provision of guarantees for homebuyers on bank mortgages:
? Applicable □ Not applicable
Project | Guarantee period | Guarantee amount (RMB’0,000) | Note |
Shanglinyuan | Until the property ownership certificate is registered as collateral and handed over to bank for keeping | 49.35 | |
Cuilinyuan | Until the property ownership certificate is registered as collateral and handed over to bank for keeping | 2,148.92 | |
Chuanqi Donghu Mingyuan | Until the property ownership certificate is registered as collateral and handed over to bank for keeping | 1,229.46 | |
Tianyuewan | Until the property ownership certificate is registered as collateral and handed over to bank for keeping | 33,640.55 | |
Linxinyuan | Until the property ownership certificate is registered as collateral and handed over to bank for keeping | 970.00 | |
Total | 38,038.27 |
Joint investments by directors, supervisors and senior management and the listed company (applicable for such investments wherethe directors, supervisors and senior management are the major source of investment):
? Applicable □ Not applicable
Project | Type of investor | Investment amount (RMB) | As % of total investment | As % of the peak of project funds | Cumulative returns (RMB) | Disinvestment | Compatibility of actual investment and returns |
Linxinyuan | Director, supervisor or senior management of the Company | 8,950,000.00 | 39.25% | 0.90% | 0.00 | N/A | N/A |
II Core Competitiveness AnalysisAs the earliest real estate developer founded in the Shenzhen Special Economic Zone, the Company helpedbuild the early city, and has created a number of "first places" in the history of real estate development in China.For example, the first to use the paid state-owned land, the first to introduce the foreign investment for thecooperative land development, the first to raise development funds by means of pre-sale of buildings, the first tocarry out public bidding for construction projects in accordance with international practices, the first to set up aproperty management company to the buildings and residences developed in an all-rounded manner, as well aswinning the bid in the new China’s first auction of land use rights held in the Shenzhen Special Economic Zone.After more than 40 years of development, the Company has grown into a business group with real estatedevelopment and operation as its main business, integrating engineering and construction, project supervision,asset management and other diversified operations. It has paid great efforts to the establishment of a modernenterprise HR management system and works hard in building a professional and high-quality developmentteam. It also keeps improving the management mechanism and processes for project development. As a result,its planning, construction, cost control, sales ability and brand image have been effectively improved. Moreimportantly, its main business operation ability and core competitiveness have been greatly enhanced.The Company has been granted the titles of “Socially Responsible Company” and “Honest (Quality) Company”in the real estate sector of Shenzhen for two consecutive years. Additionally, it was selected as one of the "MostValuable Brands for Investment of Chinese Listed Companies" and "Most Socially Responsible Brands ofChinese Listed Companies" in the 2022 Brand Power (Longcheng) Forum & the Fourth Conference on Top 500Brands of Chinese Listed Companies.III Core Business AnalysisOverview:
See contents under the heading “I Principal Activity of the Company in the Reporting Period” above.Year-on-year changes in key financial data:
Unit: RMB
H1 2023 | H1 2022 | Change (%) | Main reason for change | |
Operating revenue | 263,616,779.07 | 366,184,498.90 | -28.01% | Decreased revenue from property sales |
Cost of sales | 217,229,426.83 | 239,885,272.72 | -9.44% | |
Selling expense | 8,790,640.18 | 10,726,031.33 | -18.04% |
Administrative expense | 23,453,199.45 | 33,013,300.52 | -28.96% | Project development and staff structure adjustments |
Finance costs | -612,267.71 | -3,601,554.32 | 83.00% | Decreased bank balances and deposit interest income |
Income tax expense | -2,580,629.05 | 59,036,968.69 | -104.37% | Decreased gross profit |
Net cash generated from/used in operating activities | -192,140,948.04 | -548,115,143.34 | -64.95% | Decreased payment of land value-added tax for the Chuanqi Donghu Mingyuan project |
Net cash generated from/used in investing activities | 138,197,734.83 | 255,526,904.00 | -45.92% | A payment for the disposal of subsidiary was received in the same period of last year |
Net cash generated from/used in financing activities | 38,186,866.07 | Additional bank loan in the current period | ||
Net increase in cash and cash equivalents | -15,583,954.90 | -292,337,340.43 | 94.67% | Decreased payment of land value-added tax for the Chuanqi Donghu Mingyuan project and receipt of payment for disposal of subsidiary |
Major changes in the profit structure or sources of the Company in the Reporting Period:
? Applicable □ Not applicableNet profit largely came from recurrent business operations in the current period, while in the same period of last year, exceptionalgains such as income from the disposal of subsidiary were the primary sources of net profit.Breakdown of operating revenue:
Unit: RMB
H1 2023 | H1 2022 | Change (%) | |||
Operating revenue | As % of total operating revenue (%) | Operating revenue | As % of total operating revenue (%) | ||
Total | 263,616,779.07 | 100% | 366,184,498.90 | 100% | -28.01% |
By operating division | |||||
Property sales | 72,404,365.93 | 27.47% | 228,409,271.55 | 62.38% | -34.91% |
Engineering and construction | 149,278,954.13 | 56.63% | 103,248,547.59 | 28.20% | 28.43% |
Rental service | 35,655,793.46 | 13.53% | 16,729,533.24 | 4.57% | 8.96% |
Property management | 1,579,444.44 | 0.60% | 11,075,828.00 | 3.02% | -2.42% |
Other | 4,698,221.11 | 1.78% | 6,721,318.52 | 1.84% | -0.06% |
By product category | |||||
Residential units | 71,997,900.22 | 27.31% | 223,833,107.28 | 61.13% | -33.82% |
Shops and parking lots | 406,465.71 | 0.15% | 4,576,164.27 | 1.25% | -1.10% |
Other | 191,212,413.14 | 72.53% | 137,775,227.35 | 37.62% | 34.91% |
By operating segment | |||||
Guangdong Province | 263,276,484.95 | 99.87% | 318,380,165.32 | 86.95% | 12.92% |
Other regions in | 0.00 | 0.00% | 47,804,333.58 | 13.05% | -13.05% |
China | |||||
Overseas | 340,294.12 | 0.13% | 0.00 | 0.00% | 0.13% |
Operating division, product category or operating segment contributing over 10% of operating revenue or operating profit:
? Applicable □ Not applicable
Unit: RMB
Operating revenue | Cost of sales | Gross profit margin | YoY change in operating revenue (%) | YoY change in cost of sales (%) | YoY change in gross profit margin (%) | |
By operating division | ||||||
Property sales | 72,404,365.93 | 49,079,740.50 | 32.21% | -68.30% | -52.94% | -22.13% |
Engineering and construction | 149,278,954.13 | 146,071,686.99 | 2.15% | 44.58% | 44.62% | -0.02% |
Rental service | 35,655,793.46 | 18,005,836.85 | 49.50% | 113.13% | -4.71% | 62.44% |
Property management | 1,579,444.44 | 1,266,665.08 | 19.80% | -85.74% | -88.24% | 17.03% |
Other | 8,634,903.49 | 2,805,497.41 | 67.51% | 28.47% | -42.94% | 40.66% |
By product category | ||||||
Residential units | 71,997,900.22 | 48,682,064.04 | 32.38% | -67.83% | -51.52% | -22.76% |
Shops and parking lots | 406,465.71 | 397,676.46 | 2.16% | -91.12% | -89.77% | -12.86% |
Other | 195,149,095.52 | 168,149,686.33 | 13.84% | 41.64% | 24.02% | 12.25% |
By operating segment | ||||||
Guangdong Province | 265,244,826.14 | 217,229,426.83 | 18.10% | -16.69% | 12.51% | -21.26% |
Main business data of the most recent period restated according to changed statistical caliber for the Reporting period
□Applicable ? Not applicable
IV Non-Core Business Analysis
□Applicable ? Not applicable
V Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
30 June 2023 | 31 December 2022 | Change in percentage (%) | Reason for any significant change | |||
Amount | As a % of total assets | Amount | As a % of total assets | |||
Monetary assets | 182,290,539.13 | 3.34% | 197,663,949.74 | 3.47% | -0.13% | |
Accounts receivable | 55,880,663.33 | 1.02% | 63,580,422.16 | 1.12% | -0.10% | |
Inventories | 4,239,904,684.21 | 77.75% | 4,257,109,614.31 | 74.82% | 2.93% | Development of projects |
Investment property | 554,694,578.33 | 10.17% | 566,873,915.07 | 9.96% | 0.21% | |
Long-term equity investments | 93,927.64 | 0.00% | 93,927.64 | 0.00% | 0.00% | |
Fixed assets | 20,677,375.65 | 0.38% | 21,425,475.05 | 0.38% | 0.00% | |
Right-of-use assets | 166,069.10 | 0.00% | 232,496.72 | 0.00% | 0.00% |
Short-term borrowings | 45,050,727.80 | 0.83% | 51,138,077.62 | 0.90% | -0.07% | |
Contract liabilities | 34,256,336.95 | 0.63% | 43,533,467.29 | 0.77% | -0.14% | |
Long-term borrowings | 141,893,437.60 | 2.60% | 54,261,000.00 | 0.95% | 1.65% | Additional bank loan in the current period |
Lease liabilities | 12,377.36 | 0.00% | 53,885.23 | 0.00% | 0.00% | |
Accounts payable | 398,857,036.04 | 7.31% | 434,601,559.67 | 7.64% | -0.33% | |
Taxes payable | 37,570,635.93 | 0.69% | 190,951,185.99 | 3.36% | -2.67% | Payment of land VAT of Donghu Mingyuan in the current period |
Other payables | 555,065,599.75 | 10.18% | 574,331,340.84 | 10.09% | 0.09% |
2. Major Assets Overseas
□Applicable ? Not applicable
3. Assets and Liabilities at Fair Value
? Applicable □ Not applicable
Unit: RMB
Item | Beginning amount | Gain/loss on fair-value changes in the Reporting Period | Cumulative fair-value changes charged to equity | Impairment allowance for the Reporting Period | Purchased in the Reporting Period | Sold in the Reporting Period | Other changes | Ending amount |
Financial assets | ||||||||
1. Held-for-trading financial assets (excluding derivative financial assets) | 408,154,361.42 | 3,477,115.56 | 136,638,508.21 | 274,992,968.77 | ||||
4. Investments in other equity instruments | 13,839,235.57 | 352,055.06 | 14,191,290.63 | |||||
Total of the above | 421,993,596.99 | 3,477,115.56 | 352,055.06 | 0.00 | 0.00 | 136,638,508.21 | 0.00 | 289,184,259.40 |
Financial liabilities | 0.00 | 0.00 |
Other change
Significant changes to the measurement attributes of the major assets in the Reporting Period:
□Yes ? No
4. Restricted Asset Rights as at the Period-End
Item | Ending carrying value | Reasons |
Monetary assets | 5,674,439.78 | Project of public facilities inside and surrounding the urban renewal project of Longgang District, Shenzhen-construction funds |
Inventories | 965,000,000.00 | Lands mortgaged for project development loans |
Monetary assets | 388,115.74 | Frozen in a lawsuit case |
Accounts receivable | 45,050,727.80 | Put in pledge for short-term borrowings |
Total | 1,016,113,283.32 |
VI Investment Analysis
1. Total Investments Made
□Applicable ? Not applicable
2. Significant Equity Investments Made in the Reporting Period
□Applicable ? Not applicable
3. Significant Non-equity Investments Ongoing in the Reporting Period
□Applicable ? Not applicable
4. Financial Investments
(1) Securities Investments
□Applicable ? Not applicable
No such cases in this Reporting Period
(2) Investment in Derivative Financial Instruments
□Applicable ? Not applicable
No such cases in this Reporting Period
5. Use of Funds Raised
□Applicable ? Not applicable
No such cases in this Reporting Period
VII Sale of Major Assets and Equity Interests
1. Sale of Major Assets
□Applicable ? Not applicable
No such cases in this Reporting Period
2. Sale of Major Equity Interests
□Applicable ? Not applicable
VIII Principal Subsidiaries and Joint Stock Companies? Applicable □ Not applicablePrincipal subsidiaries and joint stock companies with an over 10% effect on the Company’s net profit:
Unit: RMB
Company name | Relationship with the Company | Main business scope | Registered capital | Total assets | Net assets | Operating revenue | Operating profit | Net profit |
Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd. | Subsidiary | Development of real estate | 2,800,000.00 | 1,491,957,625.03 | -19,769,341.08 | 0.00 | -4,072,785.25 | -4,072,785.25 |
Shenzhen SPG Chuanqi Real Estate Development Co., Ltd. | Subsidiary | Development of real estate | 30,000,000.00 | 1,138,192,024.84 | 992,339,172.23 | 0.00 | -1,842,727.01 | -1,842,727.01 |
Shenzhen SPG Longgang Development Co., Ltd. | Subsidiary | Development of real estate | 30,000,000.00 | 107,426,973.70 | 58,461,951.25 | 4,062,693.36 | 548,923.64 | 859,592.64 |
Shantou SEZ, Wellam FTY, Building Development, Co., Ltd. | Subsidiary | Development of real estate | 91,226,120.44 | 85,268,682.06 | 35,546,282.68 | 176,190.48 | -54,758,534.76 | -54,758,534.76 |
Shantou Huafeng Real Estate Development Co., Ltd. | Subsidiary | Development of real estate | 80,000,000.00 | 806,150,699.31 | 17,728,461.45 | 54,475,318.71 | 138,083.09 | 103,562.32 |
Great Wall Estate Co., Inc. (U.S.) | Subsidiary | Rental services | 2,051,146.00 | 20,170,752.91 | -93,266,727.89 | 340,294.12 | -142,447.83 | -142,447.83 |
Shenzhen Zhentong Engineering Co., Ltd. | Subsidiary | Installation | 10,000,000.00 | 282,567,892.90 | 20,620,413.10 | 150,144,506.81 | 273,084.09 | 254,677.82 |
Shenzhen Petrel | Subsidiary | Rental services | 30,000,000.00 | 44,040,875.42 | 36,941,391.53 | 7,685,132.35 | 22,759.58 | 17,069.68 |
Hotel Co., Ltd. | and property management | |||||||
Shenzhen Huazhan Construction Supervision Co., Ltd. | Subsidiary | Construction supervision | 8,000,000.00 | 9,993,923.73 | 9,655,166.68 | 944,339.63 | -712,985.53 | -712,985.53 |
Xin Feng Enterprise Co., Ltd. | Subsidiary | Investment and management | 502,335.00 | 338,345,286.36 | -231,418,127.59 | -5,047,162.12 | -5,047,162.12 |
Subsidiaries obtained or disposed in the Reporting Period:
□Applicable ? Not applicable
Information about major majority- and minority-owned subsidiaries:
1. In May 2021, through the payment of consideration of RMB450 million, the Group acquired 51% equity interest in GuangdongJianbang Group (Huiyang) Industrial Co., Ltd. The project company will develop the Linxingyuan Project with a gross site area of200,000 square meters and a total capacity building area of 0.4 million square meters, which will be developed in four phases. TheGroup has control over the project company, which will be included in the scope of consolidation in May 2021. As of 30 June2023, eight residential buildings of Phase I have been capped, the basement of Phase II has been completed, the development ofPhase III and Phase IV are to be initiated, and construction permit has not been granted for the school. There were no sales in thefirst half of 2023.
2. In October 2021, the Company won the bid for a land plot in Guangming District and established the project company ShenzhenSPG Chuanqi Real Estate Development Co., Ltd. to be responsible for the development and construction of the land. In the firsthalf of 2023, actual investment totaled RMB55.61 million, which was mainly made in main construction.
3. The subordinate subsidiaries engaged in real estate development also include: Shenzhen SPG Longgang Development Co., Ltd.,Shantou SEZ, Wellam FTY, Building Development, Co., Ltd., Shantou Huafeng Real Estate Development Co., Ltd. TheCuilinyuan project developed by Shenzhen SPG Longgang Development Co., Ltd. recorded no sales in the first half of 2023.Jinyedao and YuejingDongfang developed by Shantou SEZ, Wellam FTY, Building Development, Co., Ltd. left a few amount ofremaining buildings for sale. And Shantou Huafeng Real Estate Development Co., Ltd. was responsible for the development ofTianyuewan project (divided into Phase I and Phase II). Tianyuewan Phase I was open for sale in October 2016 and completed inDecember 2019. The Phase II started construction in November 2018 and was completed at the end of June 2021. The overallsales progress is relatively slow with an accumulated sales rate of about 74% for Phase I and 25% for Phase II.
4. Shenzhen Zhentong Engineering Co., Ltd. was engaged in the business of building installation and maintenance with the H12023 operating revenues of RMB150 million and of 56.96% to the operating revenues of the Company.
5. The H1 2023 net profit of Xin Feng Enterprise Co., Ltd. was of RMB-5.0472 million which mainly due to the changes ofexchange rate and it conducts no business.
6. The H1 2023 net profit of Shenzhen Petrel Hotel Co., Ltd. was of RMB17 thousand, representing a return to profitability, whichwas mainly due to the fact that the market and business environment improved during the Reporting Period.
IX Structured Bodies Controlled by the Company
□Applicable ? Not applicable
X Risks Facing the Company and Countermeasures(I) Macroeconomic risks and countermeasures
The real estate industry has a greater correlation with the macroeconomy and is more influenced by themacroeconomic cycle. Currently, the foundation for sustained domestic economic recovery remains unsteady,while the external environment grows increasingly complex and challenging, with global economic fluctuationstrending downward. The Company will continue to pay attention to the international and domesticmacroeconomic situation and actively adjust its business strategy.(II) Industry development risks and countermeasuresDuring the Reporting Period, there was a decrease in the new construction area of real estate, while completedarea increased. Overall construction area declined. In the short term, real estate development investment willcontinue to operate at a low level, and the real estate market remains in a phase of turbulent adjustment. TheCompany will continue to deepen its research on industry policies, follow the national strategies, innovate itsoperating model and optimize its development method.(III) Business operating risks and countermeasuresIn the first half of 2023, the sales prices of new commodity housing in cities decreased year-on-year. Productdestocking has slowed down, leading to compressed profit margins. The Company will pay close attention tochanges in markets and industry policies, focus on project construction and real estate sales to strengthen thefoundation of the main business. At the same time, the Company will actively explore new areas and cultivatenew business models.
Part IV Corporate GovernanceI Annual and Extraordinary General Meeting Convened during the Reporting Period
1. General Meetings Convened during the Reporting Period
Meeting | Type | Investor participation ratio | Convened date | Disclosure date | Resolution of meeting |
The First Extraordinary General Meeting in 2023 | Extraordinary General Meeting | 62.31% | 30 March 2023 | 31 March 2023 | Resolutions of First Extraordinary General Meeting in 2023 disclosed on China Securities, Securities Times, Ta Kung Pao and www.cninfo.com.cn (No.: 2023-014) |
The 2022 Annual General Meeting | Annual General Meeting | 62.37% | 28 April 2023 | 29 April 2023 |
Resolutions of 2022Annual General Meetingdisclosed on ChinaSecurities, SecuritiesTimes, Ta Kung Pao andwww.cninfo.com.cn (No.:
2023-020)
2. Extraordinary General Meeting Convened at Request of Preference Shareholders with ResumedVoting Rights
□Applicable ? Not applicable
II Change of Directors, Supervisors and Senior Management?Applicable □ Not applicable
Name | Office title | Type | Date | Reason |
Tang Xiaoping | Chairman of the Board | Elected | 30 March 2023 | |
Zhang Manhua | Director | Elected | 30 March 2023 | |
Wen Li | Director | Left office | 30 March 2023 | |
Lu Haiyan | Supervisor | Elected | 28 March 2023 | |
Feng Hongwei | Supervisor | Left office | 28 March 2023 |
III Interim Dividend Plan
□Applicable ? Not applicable
The Company has no interim dividend plan, either in the form of cash or stock.
IV Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measuresfor Employees
□Applicable ? Not applicable
No such cases in the Reporting Period.
Part V Environmental and Social ResponsibilityI Major Environmental IssuesIndicate by tick mark whether the Company or any of its subsidiaries is a heavily polluting business identified by theenvironmental protection authorities of China.
□Yes ? No
Administrative penalties imposed for environmental problems during the Reporting Period
Name | Reason | Case | Result | Influence on production and operation | Rectification measures |
N/A | N/A | N/A | N/A | N/A | N/A |
Other environmental information disclosed with reference to the heavily polluting businessThe Company and its subsidiaries are not imposed any administrative penalties for environmental problems during the ReportingPeriod.Measures taken to decrease carbon emission in the Reporting Period and corresponding effects
□Applicable ? Not applicable
Reason for failure of disclosing other environmental informationThe Company and its subsidiaries isn’t a heavily polluting business identified by the environmental protection authorities of China.II Social ResponsibilityWhile pursuing economic benefits and protecting the interests of shareholders, the Company proactivelyfulfilled its social responsibilities demonstrating the Company’s social value and responsibilities. During theReporting Period, the Company has diligently adhered to its mission awareness. It has firmly grasped the mostpressing and direct interests of the people, establishing a list of tangible projects that serve the welfare of thepeople. 1. The Company has demonstrated care for families facing family planning difficulties within itsjurisdiction. It donated RMB30,000 to the Jiabei Community for the “Support for Family Planning and Care forFamilies in Need” donation campaign, joining hands to provide care and support. 2. Collaborating with propertymanagement companies, the Company has jointly built a safety line. It organised emergency evacuation drillsfor commercial tenants in properties under its jurisdiction, enhancing public awareness of fire safety andprevention. 3. The Company has invested in commissioning the natural gas transformation of gas pipelines in itsown old residential communities. It has strongly supported the government’s “tank-to-pipe” project to eliminatesafety hazards.
Part VI Significant EventsI Commitments of the Company’s De Facto Controller, Shareholders, Related Parties andAcquirers, as well as the Company Itself and Other Entities Fulfilled in the ReportingPeriod or Ongoing at the Period-End
□Applicable ? Not applicable
No such cases in the Reporting Period.II Occupation of the Company’s Capital by the Controlling Shareholder or any of ItsRelated Parties for Non-Operating Purposes
□Applicable ? Not applicable
No such cases in the Reporting Period.III Irregularities in the Provision of Guarantees
□Applicable ? Not applicable
No such cases in the Reporting Period.IV Engagement and Disengagement of Independent AuditorAre the interim financial statements audited?
□Yes ? No
The interim financial statements have not been audited.V Explanations Given by the Board of Directors and the Supervisory Committee Regardingthe Independent Auditor's “Modified Opinion” on the Financial Statements of theReporting Period
□Applicable ? Not applicable
VI Explanations Given by the Board of Directors Regarding the Independent Auditor's“Modified Opinion” on the Financial Statements of Last Year
□Applicable ? Not applicable
VII Insolvency and Reorganization
□Applicable ? Not applicable
No such cases in the Reporting Period.VIII Legal MattersSignificant lawsuits and arbitrations:
? Applicable □ Not applicable
General information | Involved amount (RMB’0,000) | Provision | Progress | Decisions and effects | Execution of decisions | Disclosure date | Index to disclosed information |
Xi’an Project Lawsuit | 2,154 | No | In execution | ? Xi’an Business Tourism Company Limited (hereinafter referred to as “Business Company”) had to pay for the compensation RMB36.62 million and the relevant interest (from 14 September 1998 to the payment day) to Xi’an Fresh Peak Company within one month after the judgment entering into force. If the Business Company failed to pay in time, it had to pay double debt interests to Xi’an Fresh Peak Company for the overdue period; ② Xi’an Joint Commission on Commerce had jointly and severally obligation of the interests of the compensation; .③ Business Company shall bear RMB227,500 of the acceptance fee and the security fee. | Shaanxi High People’s Court Sold all assets of Business Company by auction in accordance with laws in 2004. The applicant has received RMB15.20 million. Now Business Company has no executable properties and Xi’an Joint Commission on Commerce has been refusing to execute the ruling. It is difficult to recover the rest. | 18 March 2023 | Annual Report 2022 (No.: 2023-010) on www.cninfo.com.cn |
Lawsuit of bill dispute | 17,715.14 | No | Judgment was rendered in the first instance | As Jianbang Group is incapable of paying the commercial bills due in January 2022, which total RMB177,151,400, Huizhou Mingxiang Economic Information Consulting Co., Ltd., Huizhou Huiyang Hongfa Industry & Trade Co., Ltd. and Huizhou Jinlongsheng Industrial Co., Ltd. brought a lawsuit | SPG is actively negotiating with Jianbang and the plaintiffs for an all-inclusive solution. | 18 March 2023 | Annual Report 2022 (No.: 2023-010) on www.cninfo.com.cn |
on the bill disputeto the People’sCourt of HuiyangDistrict. TheHuiyang DistrictCourt ruled at firstinstance in March2023 that Jianbangshould pay theacceptance billamount andinterest.
Other legal matters:
□Applicable ? Not applicable
IX Punishments and Rectifications
□Applicable ? Not applicable
X Credit Quality of the Company as well as its Controlling Shareholder and De FactoController
□Applicable ? Not applicable
XI Major Related-Party Transactions
1. Continuing Related-Party Transactions
□Applicable ? Not applicable
No such cases in the Reporting Period.
2. Related-Party Transactions Regarding Purchase or Sales of Assets or Equity Interests
□Applicable ? Not applicable
No such cases in the Reporting Period.
3. Related Transactions Regarding Joint Investments in Third Parties
□Applicable ? Not applicable
No such cases in the Reporting Period.
4. Amounts Due to and from Related Parties
□Applicable ? Not applicable
No such cases in the Reporting Period.
5. Transactions with Related Finance Companies
□Applicable ? Not applicable
The Company did not make deposits in, receive loans or credit from and was not involved in any other finance business with anyrelated finance company or any other related parties.
6. Transactions with Related Parties by Finance Companies Controlled by the Company
□Applicable ? Not applicable
The finance company controlled by the Company did not make deposits, receive loans or credit from and was not involved in anyother finance business with any related parties.
7. Other Major Related-Party Transactions
□Applicable ? Not applicable
No such cases in the Reporting Period.XII Major Contracts and Execution thereof
1. Entrustment, Contracting and Leases
(1) Entrustment
□Applicable ? Not applicable
No such cases in the Reporting Period.
(2) Contracting
□Applicable ? Not applicable
No such cases in the Reporting Period.
(3) Leases
□Applicable ? Not applicable
No such cases in the Reporting Period.
2. Major Guarantees
? Applicable □ Not applicable
Unit: RMB’0,000
Guarantees provided by the Company as the parent and its subsidiaries for external parties (exclusive of those for subsidiaries) | ||||||||||
Obligor | Disclosure date of the guarantee line announcement | Line of guarantee | Actual occurrence date | Actual guarantee amount | Type of guarantee | Collateral (if any) | Counter guarantee (if any) | Term of guarantee | Having expired or not | Guarantee for a related party or not |
Guarantees provided by the Company as the parent for its subsidiaries | ||||||||||
Obligor | Disclosure date of the guarante | Line of guarantee | Actual occurrence date | Actual guarantee amount | Type of guarantee | Collateral (if any) | Counter guarantee (if any) | Term of guarantee | Having expired or not | Guarantee for a related party or |
e line announcement | not | |||||||||
Shenzhen SPG Chuanqi Real Estate Development Co., Ltd. | 18 March 2022 | 50,000 | 17 June 2022 | 9,929 | Pledge | 100% equity interests of Shenzhen SPG Chuanqi Real Estate Development Co., Ltd. held by the Company | From the date of signing the guarantee contract to the date when all guaranteed debts are unconditionally and irrevocably paid off in full. | Not | Not | |
Total approved line for such guarantees in the Reporting Period (B1) | 50,000 | Total actual amount of such guarantees in the Reporting Period (B2) | 9,929 | |||||||
Total approved line for such guarantees at the end of the Reporting Period (B3) | 50,000 | Total actual balance of such guarantees at the end of the Reporting Period (B4) | 9,929 | |||||||
Guarantees provided between subsidiaries | ||||||||||
Obligor | Disclosure date of the guarantee line announcement | Line of guarantee | Actual occurrence date | Actual guarantee amount | Type of guarantee | Collateral (if any) | Counter guarantee (if any) | Term of guarantee | Having expired or not | Guarantee for a related party or not |
Total guarantee amount (total of the three kinds of guarantees above) | ||||||||||
Total guarantee line approved in the Reporting Period (A1+B1+C1) | 50,000 | Total actual guarantee amount in the Reporting Period (A2+B2+C2) | 9,929 | |||||||
Total approved guarantee line at the end of the Reporting Period (A3+B3+C3) | 50,000 | Total actual guarantee balance at the end of the Reporting Period (A4+B4+C4) | 9,929 | |||||||
Total actual guarantee amount (A4+B4+C4) as % of the Company’s net assets | 2.54% | |||||||||
Of which: | ||||||||||
Total of the three amounts above (D+E+F) | 9,929 |
Compound guarantees
3. Cash Entrusted for Wealth Management
? Applicable □ Not applicable
Unit: RMB’0,000
Type | Funding source | Amount | Undue amount | Unrecovered overdue amount | Unrecovered overdue amount with provision for impairment |
Other | Self-funded | 39,015.11 | 27,499.3 | 0 | 0 |
Total | 39,015.11 | 27,499.3 | 0 | 0 |
High-risk entrusted wealth management with significant single amount or low security and poor liquidity:
□Applicable ? Not applicable
Whether there is the case where the principal cannot be recovered at maturity or other case which may cause impairment forentrusted wealth management
□Applicable ? Not applicable
4. Other Significant Contracts
□Applicable ? Not applicable
No such cases in the Reporting Period.
XIII Other Significant Events
? Applicable □ Not applicable
(I) On 30 March 2023, the Company held the First Extraordinary General Meeting in 2023, at which the non-independent directors and independent directors for the eighth Board of Directors and the non-employeesupervisors for the eighth Supervisory Committee were elected. Together with the employee supervisor whowas elected at a workers’ congress, they formed the new Board of Directors and Supervisory Committee. Forfurther information, see Announcement No. 2023-017 on the Re-election of the Board of Directors and theSupervisory Committee dated 31 March 2023.(II) In accordance with the provisions of the Articles of Association, "the legal representative of the Companyshall be the chairman of the board of directors of a company". The Company has completed the formalities forthe change of its registered corporate information on 17 April 2023, and the legal representative of theCompany has been changed from Mr. Liu Zhengyu to Mr. Tang Xiaoping.XIV Significant Events of Subsidiaries
□Applicable ? Not applicable
Part VII Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
Before | Increase/decrease (+/-) in the current period | After | |||||||
Shares | Percentage (%) | New issues | Shares as dividend converted from profit | Shares as dividend converted from capital reserves | Other | Subtotal | Shares | Percentage (%) | |
1. Restricted shares | 0.00 | 0.00% | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00% |
1.1 Shares held by the state | 0.00 | 0.00% | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00% |
1.2 Shares held by state-own legal person | 0.00 | 0.00% | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00% |
1.3 Shares held by other domestic investors | 0.00 | 0.00% | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00% |
Among which: shares held by domestic legal person | 0.00 | 0.00% | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00% |
Shares held by domestic natural person | 0.00 | 0.00% | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00% |
1.4 Oversea shareholdings | 0.00 | 0.00% | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00% |
Among which: shares held by oversea legal person | 0.00 | 0.00% | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00% |
Shares held by oversea natural person | 0.00 | 0.00% | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00% |
2. Unrestricted shares | 1,011,660,000.00 | 100.00% | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1,011,660,000.00 | 100.00% |
2.1 RMB ordinary shares | 891,660,000.00 | 88.14% | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 891,660,000.00 | 88.14% |
2.2 Domestically listed foreign shares | 120,000,000.00 | 11.86% | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 120,000,000.00 | 11.86% |
2.3 Oversea listed foreign shares | 0.00 | 0.00% | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00% |
2.4 Other | 0.00 | 0.00% | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00% |
3. Total shares | 1,011,660,000.00 | 100.00% | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1,011,660,000.00 | 100.00% |
Reasons for share changes:
□Applicable ? Not applicable
Approval of share changes:
□Applicable ? Not applicable
Transfer of share ownership:
□Applicable ? Not applicable
Progress on any share repurchase:
□Applicable ? Not applicable
Progress on reducing the repurchased shares by means of centralized bidding:
□Applicable ? Not applicable
Effects of share changes on the basic and diluted earnings per share, equity per share attributable to the Company’s ordinaryshareholders and other financial indicators of the prior year and the prior accounting period, respectively:
□Applicable ? Not applicable
Other information that the Company considers necessary or is required by the securities regulator to be disclosed:
□Applicable ? Not applicable
2. Changes in Restricted Shares
□Applicable ? Not applicable
II. Issuance and Listing of Securities
□Applicable ? Not applicable
III. Total Number of Shareholders and Their Shareholdings
Unit: share
Total number of ordinary shareholders at the period-end | 44,842 | Total number of preference shareholders with resumed voting rights at the period-end (if any) (see Note 8) | 0 | ||||||||
Shareholding of ordinary shareholders holding more than 5% shares or the top 10 of ordinary shareholders | |||||||||||
Name of shareholder | Nature of shareholder | Shareholding percentage | Total ordinary shares held at the period-end | Increase/decrease in the Reporting Period | Restricted ordinary shares held | Non-restricted ordinary shares held | Shares in pledge, marked or frozen | ||||
Status | Shares | ||||||||||
Shenzhen Investment Holdings Co., Ltd. | State-owned corporation | 55.78% | 564,353,838 | 564,353,838 | |||||||
Shenzhen State-Owned Equity Operation and Management Co., Ltd. | Domestic non-state-owned legal person | 6.35% | 64,288,426 | 64,288,426 | |||||||
Yang Jianmin | Domestic natural person | 1.08% | 10,972,077 | 10,972,077 | |||||||
Zhang Xiujuan | Domestic natural person | 0.47% | 4,760,400 | 4,760,400 | |||||||
Wang Yulan | Domestic natural person | 0.44% | 4,427,191 | 4,427,191 | |||||||
Pan Jun | Domestic natural person | 0.41% | 4,160,000 | 4,160,000 |
He Qiao | Domestic natural person | 0.40% | 4,042,586 | 4,042,586 | ||||||||
Hong Kong Securities Clearing Company Ltd. | Foreign legal person | 0.39% | 3,946,675 | 3,946,675 | ||||||||
Cao Benming | Domestic natural person | 0.33% | 3,356,800 | 3,356,800 | ||||||||
Wang Zhengying | Domestic natural person | 0.29% | 2,924,200 | 2,924,200 | ||||||||
Strategic investor or general legal person becoming a top-10 ordinary shareholder due to rights issue (if any) | None | |||||||||||
Related or acting-in-concert parties among the shareholders above | Among the top 10 shareholders of the Company, Shenzhen State-owned Equity Management Co., Ltd. is a wholly-owned subsidiary of Shenzhen Investment Holdings Co., Ltd. The Company does not know whether there exists associated relationship among the other shareholders, or whether they are persons acting in concert as prescribed in the Administrative Measures for the Acquisition of Listed Companies. | |||||||||||
Explain if any of the shareholders above was involved in entrusting/being entrusted with voting rights or waiving voting rights | None | |||||||||||
Special account for share repurchases (if any) among the top 10 shareholders | None | |||||||||||
Top 10 unrestricted ordinary shareholders | ||||||||||||
Name of shareholder | Unrestricted ordinary shares held at the period-end | Shares by type | ||||||||||
Type | Shares | |||||||||||
Shenzhen Investment Holdings Co., Ltd. | 564,353,838 | RMB ordinary shares | 564,353,838 | |||||||||
Shenzhen State-Owned Equity Operation and Management Co., Ltd. | 64,288,426 | RMB ordinary shares | 64,288,426 | |||||||||
Yang Jianmin | 10,972,077 | RMB ordinary shares | 10,972,077 | |||||||||
Zhang Xiujuan | 4,760,400 | RMB ordinary shares | 4,760,400 | |||||||||
Wang Yulan | 4,427,191 | RMB ordinary shares | 4,427,191 | |||||||||
Pan Jun | 4,160,000 | RMB ordinary shares | 4,160,000 | |||||||||
He Qiao | 4,042,586 | RMB ordinary shares | 3,889,900 | |||||||||
Domestically listed foreign shares | 152,686 | |||||||||||
Hong Kong Securities Clearing Company Ltd. | 3,946,675 | RMB ordinary shares | 3,946,675 | |||||||||
Cao Benming | 3,356,800 | RMB ordinary shares | 3,356,800 | |||||||||
Wang Zhengying | 2,924,200 | RMB ordinary shares | 2,924,200 | |||||||||
Related or acting-in-concert parties among top 10 unrestricted public shareholders, as well as between top 10 unrestricted public shareholders and top 10 shareholders | Among the top 10 unrestricted public shareholders of the Company, Shenzhen State-owned Equity Management Co., Ltd. is a wholly-owned subsidiary of Shenzhen Investment Holdings Co., Ltd. The Company does not know whether there exists associated relationship among the other shareholders, or whether they are persons acting in concert as prescribed in the Administrative Measures for the Acquisition of Listed Companies. | |||||||||||
Top 10 ordinary shareholders involved in securities margin trading (if any) | Among the top 10 shareholders of the Company, the third, fourth, seventh, ninth and 10th shareholders held 9,804,200 shares, 4,760,400 shares, 3,732,000 shares, 3,351,800 shares, and 2,924,200 shares in their respective credit securities accounts. |
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the
Company conducted any promissory repo during the Reporting Period.
□Yes ? No
No such cases in the Reporting Period.IV Change in Shareholdings of Directors, Supervisors and Senior Management? Applicable □ Not applicable
Name | Office title | Incumbent/Former | Beginning shareholding (share) | Increase in the Reporting Period (share) | Decrease in the Reporting Period (share) | Ending shareholding (share) | Restricted shares granted at the period-beginning (share) | Restricted shares granted in the Reporting Period (share) | Restricted shares granted at the period-end (share) |
Lu Haiyan | Supervisor | Incumbent | 0 | 200 | 0 | 200 | 0 | 0 | 0 |
Total | -- | -- | 0 | 200 | 0 | 200 | 0 | 0 | 0 |
V Change of the Controlling Shareholder or the De Facto Controller
Change of the controlling shareholder in the Reporting Period
□Applicable ? Not applicable
No such cases in the Reporting Period.Change of the de facto controller in the Reporting Period
□Applicable ? Not applicable
No such cases in the Reporting Period.
Part VIII Preference Shares
□Applicable ? Not applicable
No preference shares in the Reporting Period.
Part IX Bonds
□Applicable ? Not applicable
Part X. Financial StatementsI. Auditor’s ReportWhether the semi-annual report has been audited?
□ Yes √ No
The semi-annual report of the Company has not been audited.II. Financial StatementsThe financial statements of the company have been prepared in China Yuan.
1. Consolidated Statement of Financial Position
Prepared by Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd
As at 30 June 2023
Presented in RMB
Item | 30 June 2023 | 1 January 2023 |
Current assets: | ||
Cash at bank and on hand | 182,290,539.13 | 197,663,949.74 |
Provision of Settlement fund | ||
Funds lent | ||
Financial assets held for trading | 274,992,968.77 | 408,154,361.42 |
Derivative financial assets | ||
Notes receivable | 1,536,150.00 | |
Accounts receivable | 55,880,663.33 | 63,580,422.16 |
Accounts receivable financing | ||
Prepayments | 762,828.19 | 1,163,612.24 |
Insurance premiums receivables | ||
Cession premiums receivables | ||
Provision of cession premiums | ||
Other receivables | 21,922,385.34 | 42,105,050.33 |
Including: Interest receivable | ||
Dividends receivable | ||
Recoursable Financial assets acquired | ||
Inventories | 4,239,904,684.21 | 4,257,109,614.31 |
Contractual assets | ||
Assets held for sale | ||
Non-current assets due within one year | ||
Other current assets | 38,594,239.68 | 36,778,641.42 |
Total current assets | 4,814,348,308.65 | 5,008,091,801.62 |
Non-current assets: |
Loans and payments | ||
Debt investment | ||
Investments in other debt obligations | ||
Long-term receivables | ||
Long-term equity investments | 93,927.64 | 93,927.64 |
Investments in other equity instrument | 14,191,290.63 | 13,839,235.57 |
Other non-current financial assets | ||
Investment property | 554,694,578.33 | 566,873,915.07 |
Fixed assets | 20,677,375.65 | 21,425,475.05 |
Construction in progress | ||
Productive living assets | ||
Oil and gas assets | ||
Right-of-use assets | 166,069.10 | 232,496.72 |
Intangible assets | ||
Development costs | ||
Goodwill | ||
Long-term deffered expense | 1,829,989.34 | 2,176,221.53 |
Deferred tax assets | 47,180,201.16 | 77,036,728.98 |
Other non-current assets | ||
Total non-current assets | 638,833,431.85 | 681,678,000.56 |
Total assets | 5,453,181,740.50 | 5,689,769,802.18 |
Current liabilities: | ||
Short-term loans | 45,050,727.80 | 51,138,077.62 |
Borrowings from central bank | ||
Deposit funds | ||
Financial liabilities held for trading | ||
Derivative financial liabilities | ||
Notes payable | ||
Accounts payable | 398,857,036.04 | 434,601,559.67 |
Advances from customers | 4,871,471.88 | 5,465,343.96 |
Contractual liabilities | 34,256,336.95 | 43,533,467.29 |
Funds from sale of financial assets with repurchase agreements | ||
Deposits from customer and interbank | ||
Funds received as an agent of stock exchange | ||
Funds received as stock underwrite | ||
Payroll payable | 26,107,904.96 | 35,724,203.78 |
Tax payable | 37,570,635.93 | 190,951,185.99 |
Other payables | 555,065,599.75 | 574,331,340.84 |
Including: Interest payable | 16,535,277.94 | 16,535,277.94 |
Dividends payable | ||
Handling charges and commissions payable | ||
Cession premiums payables | ||
Liabilities held for sale |
Non-current liabilities due within one year | 20,066,196.66 | 6,188,794.43 |
Other current liabilities | 2,844,613.84 | 3,882,817.68 |
Total current liabilities | 1,124,690,523.81 | 1,345,816,791.26 |
Non-current liabilities: | ||
Provision for insurance contracts | ||
Long-term loans | 141,893,437.60 | 54,261,000.00 |
Debentures payable | ||
Including: Preferred shares | ||
Perpetual bonds | ||
Lease liabilities | 12,377.36 | 53,885.23 |
Long-term payables | ||
Long-term employee benefits payable | ||
Provisions | ||
Deferred income | ||
Deferred tax liabilities | 3,096,348.02 | 3,096,348.02 |
Other non-current liabilities | ||
Total non-current liabilities | 145,002,162.98 | 57,411,233.25 |
Total liabilities | 1,269,692,686.79 | 1,403,228,024.51 |
Equity: | ||
Share capital | 1,011,660,000.00 | 1,011,660,000.00 |
Other equity instruments | ||
Including: Preferred shares | ||
Perpetual bonds | ||
Capital reserves | 978,244,910.11 | 978,244,910.11 |
Less: treasury shares | ||
Other comprehensive income | 24,153,998.68 | 25,926,720.85 |
Specific reserve | ||
Surplus reserve | 275,253,729.26 | 275,253,729.26 |
Generic Risk Reserve | ||
Retained earnings | 1,614,325,744.67 | 1,713,155,187.48 |
Total equity attributable to shareholders of the company | 3,903,638,382.72 | 4,004,240,547.70 |
Non-controlling interests | 279,850,670.99 | 282,301,229.97 |
Total equity | 4,183,489,053.71 | 4,286,541,777.67 |
Total liabilities and equity | 5,453,181,740.50 | 5,689,769,802.18 |
Legal representative: Xiaoping Tang General Accountant:JianFei Wang The head of the accountingdepartment: Hongpu Zhou
2. Financial Position Statement of the Parent Entity
Presented in RMB
Item | 30 June 2023 | 1 January 2023 |
Current assets: | ||
Cash at bank and on hand | 109,865,577.44 | 92,377,124.60 |
Financial assets held for trading | 274,992,968.77 | 408,154,361.42 |
Derivative financial assets | ||
Notes receivable | ||
Accounts receivable | 5,229,812.62 | 11,706,678.21 |
Accounts receivable financing | ||
Prepayments | 200,000.00 | 200,000.00 |
Other receivables | 1,736,355,470.74 | 1,711,880,332.45 |
Including: Interest receivable | ||
Dividends receivable | 34,222,722.88 | 39,222,722.88 |
Inventories | 296,848.69 | 4,854,703.53 |
Contractual assets | ||
Assets held for sale | ||
Non-current assets due within one year | ||
Other current assets | 1,360,584.56 | 1,138,065.43 |
Total current assets | 2,128,301,262.82 | 2,230,311,265.64 |
Non-current assets: | ||
Debt investment | ||
Investments in other debt obligations | ||
Long-term receivables | ||
Long-term equity investments | 1,582,275,489.49 | 1,582,275,489.49 |
Investments in other equity instruments | 14,191,290.63 | 13,839,235.57 |
Other non-current financial assets | ||
Investment property | 444,517,161.22 | 455,917,024.15 |
Fixed assets | 13,310,408.53 | 14,046,375.35 |
Construction in progress | ||
Productive living assets | ||
Oil and gas assets | ||
Right-of-use assets | ||
Intangible assets | ||
Development costs | ||
Goodwill | ||
Long-term deferred expense | 1,218,574.62 | 1,381,401.99 |
Deferred tax assets | 190,733.76 | 29,502,067.58 |
Other non-current assets | ||
Total non-current assets | 2,055,703,658.25 | 2,096,961,594.13 |
Total assets | 4,184,004,921.07 | 4,327,272,859.77 |
Current liabilities: | ||
Short-term loans | ||
Financial liabilities held for trading | ||
Derivative financial liabilities | ||
Notes payable | ||
Accounts payable | 11,573,238.42 | 17,666,752.61 |
Advances from customers | ||
Contractual liabilities | 88,985.71 | 184,985.71 |
Payroll payable | 14,503,407.76 | 21,167,813.42 |
Tax payable | 26,164,837.11 | 178,147,095.75 |
Other payables | 178,966,190.10 | 184,614,308.51 |
Including: Interest payable | 16,535,277.94 | 16,535,277.94 |
Dividends payable | ||
Liabilities held for sale | ||
Non-current liabilities due within one year | 125,173.22 | 0.00 |
Other current liabilities | 4,449.29 | 9,249.29 |
Total current liabilities | 231,426,281.61 | 401,790,205.29 |
Non-current liabilities: | ||
Long-term loans | 62,461,437.60 | 0.00 |
Debentures payable | ||
Including: Preferred shares | ||
Perpetual bonds | ||
Lease liabilities | ||
Long-term payables | ||
Long-term employee benefits payable | ||
Provisions | ||
Deferred income | ||
Deferred tax liabilities | 3,096,348.02 | 3,096,348.02 |
Other non-current liabilities | ||
Total non-current liabilities | 65,557,785.62 | 3,096,348.02 |
Total liabilities | 296,984,067.23 | 404,886,553.31 |
Equity: | ||
Share capital | 1,011,660,000.00 | 1,011,660,000.00 |
Other equity instruments | ||
Including: Preferred shares | ||
Perpetual bonds | ||
Capital reserves | 964,711,931.13 | 964,711,931.13 |
Less: treasury shares | ||
Other comprehensive income | 1,731,481.74 | 1,379,426.68 |
Specific reserve | ||
Surplus reserve | 252,124,115.85 | 252,124,115.85 |
Retained earnings | 1,656,793,325.12 | 1,692,510,832.80 |
Total equity | 3,887,020,853.84 | 3,922,386,306.46 |
Total liabilities and equity | 4,184,004,921.07 | 4,327,272,859.77 |
3. Consolidated Statement of Profit or Loss and Other Comprehensive Income
Presented in RMB
Item | 6 months ended 30 June 2023 | 6 months ended 30 June 2022 |
1. Revenue | 263,616,779.07 | 366,184,498.90 |
Including: Operating revenue | 263,616,779.07 | 366,184,498.90 |
Interest income | ||
Insurance premium income | ||
Handling charge and commission income | ||
2. Expenses | 310,757,866.31 | 337,004,632.25 |
Including: operating expenses | 217,229,426.83 | 239,885,272.72 |
Interest expense | ||
Handling charge and commission expense | ||
Refund of Insurance premium | ||
Net payment for insurance claims | ||
Net provision for insurance contracts | ||
Commissions on insurance |
polices | ||
Cession charges | ||
Taxes and surcharges | 61,896,867.56 | 56,981,582.00 |
Selling and distribution expense | 8,790,640.18 | 10,726,031.33 |
General and administrative expenses | 23,453,199.45 | 33,013,300.52 |
Research and development expense | ||
Financial expense | -612,267.71 | -3,601,554.32 |
Including: Interest expense | ||
Interest income | 716,366.12 | 2,903,815.84 |
Add: Other income | 123,732.31 | 400,232.43 |
Investment income (“-” for losses) | 1,806,314.48 | 166,815,177.24 |
Including: Income from investment in associates and joint ventures (“-” for losses) | ||
Income from derecognition of financial assets at amortized cost (“-” for loss) | ||
Foreign exchange gain (“-” for loss) | ||
Net gain on exposure hedges (“-” for loss) | ||
Gains from changes in fair value (“-” for losses) | 3,477,115.56 | 4,963,730.62 |
Credit impairment loss (“-” for loss) | 529,176.78 | 131,316.20 |
Impairment losses (“-” for losses) | ||
Gains from assets disposal (“-” for losses) | ||
3. Operating profit (“-” for loss) | -41,204,748.11 | 201,490,323.14 |
Add: Non-operating income | 17,476.72 | 552,207.24 |
Less: Non-operating expense | 51,480.63 | 45,299.06 |
4. Profit before income tax (“-” for losses) | -41,238,752.02 | 201,997,231.32 |
Less: Income tax expense | -2,580,629.05 | 59,036,968.69 |
5. Net profit for the year (“-” for net losses) | -38,658,122.97 | 142,960,262.63 |
5.1 Classification according to operation continuity | ||
5.1.1 Net profit from continuing operations (“-” for net loss) | -38,658,122.97 | 142,960,262.63 |
5.1.2Net profit from discontinued operations (“-” for net loss) | ||
5.2 Classification according to attribute | ||
5.2.1 Members of the parent shareholders ("-" for net loss) | -37,118,182.81 | 145,128,330.14 |
5.2.2 Non-controlling interests (“-” for net loss) | -1,539,940.16 | -2,168,067.51 |
6. Other comprehensive income (net of tax) | -2,683,340.99 | 1,148,674.10 |
Other comprehensive income (net of tax) attributable to members of the parent entity | -1,772,722.17 | 2,356,617.71 |
6.1 Other comprehensive income items that will not be reclassified subsequently to profit or loss | 352,055.06 | 5,175,152.79 |
6.1.1 Remeasurement of defined benefit plan liability or asset | ||
6.1.2 Other comprehensive income that cannot be transferred to profit or loss under the equity method | 352,055.06 | 5,175,152.79 |
6.1.3 Changes in the fair value of investments in other equity instruments | ||
6.1.4 Changes in the fair value of the company’s credit risks | ||
6.1.5 Other | ||
6.2 Other comprehensive income items that may be reclassified subsequently to profit or loss | -2,124,777.23 | -2,818,535.08 |
6.2.1 Other comprehensive income that can be transferred to profit or loss under equity method | ||
6.2.2 Changes in the fair value of investments in other debt obligations | ||
6.2.3 Other comprehensive income arising from the reclassification of financial assets | ||
6.2.4 Provision for credit impairments in other debt investment | ||
6.2.5 Effective portion of gains or losses arising from cash flow hedging instruments | ||
6.2.6 Translation differences arising from translation of foreign currency financial statements | -2,124,777.23 | -2,818,535.08 |
6.2.7 Other | ||
Other comprehensive income (net of tax) attributable to non- | -910,618.82 | -1,207,943.61 |
controlling interests | ||
7. Total comprehensive income for the period | -41,341,463.96 | 144,108,936.73 |
Attributable to members of parent entity | -38,890,904.98 | 147,484,947.85 |
Attributable to non-controlling interests | -2,450,558.98 | -3,376,011.12 |
8. Earnings per share | ||
8.1 Basic earnings per share | -0.0367 | 0.1435 |
8.2 Diluted earnings per share | -0.0367 | 0.1435 |
In a business combination involving enterprises under common control, (net losses)/net profit of combinedparties before the combination date is RMB 0.00, and (net losses)/net profit of combined parties in prior periodis RMB 0.00.Legal representative: Xiaoping Tang General Accountant:JianFei Wang The head of the accountingdepartment: Hongpu Zhou
4. Statement of Profit or Loss and Other Comprehensive Income For the Parent Entity
Presented in RMB
Item | 6 months ended 30 June 2023 | 6 months ended 30 June 2022 |
1. Revenue | 45,811,654.36 | 160,994,487.38 |
Less: Cost of sales | 14,351,721.51 | 48,054,643.10 |
Taxes and surcharges | 4,234,420.47 | 50,213,639.31 |
Selling and distribution expense | 620,765.04 | 1,136,952.69 |
General and administrative expenses | 12,792,471.19 | 19,684,166.38 |
Research and development expense | ||
Financial expense | -5,557,837.05 | -8,916,021.09 |
Including: Interest expense | ||
Interest income | ||
Add: Other income | 68,844.09 | 234,931.53 |
Investment income (“-” for losses) | 1,806,314.48 | 174,994,652.49 |
Including: Income from investment in associates and joint ventures (“-” for losses) | ||
Income from the derecognition of financial assets at amortized cost (“-” for loss) | ||
Net gain on exposure hedges (“-” for loss) | ||
Gains from changes in fair value (“-” for losses) | 3,477,115.56 | 4,963,730.62 |
Credit impairment loss (“-” for loss) | -448,326.78 | -78,105.19 |
Impairment losses (“-” for losses) | ||
Gains from assets disposal (“-” |
for losses) | ||
2. Operating profit (“-” for loss) | 25,170,714.11 | 231,092,526.82 |
Add: Non-operating income | 4,745.37 | 550,000.10 |
Less: Non-operating expense | 50,894.08 | 0.00 |
3. Profit before income tax (“-” for losses) | 25,124,565.40 | 231,642,526.92 |
Less: Income tax expense | -869,186.92 | 56,829,680.07 |
4. Net profit for the year (“-” for net losses) | 25,993,752.32 | 174,812,846.85 |
4.1 Net profit from continuing operations (“-” for net loss) | 25,993,752.32 | 174,812,846.85 |
4.2 Net profit from discontinued operations (“-” for net losses) | ||
5. Other comprehensive income, net of tax | 352,055.06 | 0.00 |
5.1 Other comprehensive income items that will not be reclassified subsequently to profit or loss | 352,055.06 | |
5.1.1 Remeasurement of defined benefit plan liability or asset | ||
5.1.2 Other comprehensive income that cannot be transferred to profit or loss under the equity method | ||
5.1.3 Changes in the fair value of investments in other equity instruments | 352,055.06 | 0.00 |
5.1.4 Changes in the fair value of the company’s credit risks | ||
5.1.5 Other | ||
5.2 Other comprehensive income items that may be reclassified subsequently to profit or loss | ||
5.2.1 Other comprehensive income can be transferred to profit or loss under equity method | ||
5.2.2 Changes in the fair value of investments in other debt obligations | ||
5.2.3 Other comprehensive income arising from the reclassification of financial assets | ||
5.2.4 Provision for credit impairments in other debt investment | ||
5.2.5 Effective portion of gains or losses arising from cash flow hedging instruments |
5.2.6 Translation differences arising from translation of foreign currency financial statements | ||
5.2.7 Other | ||
6. Total comprehensive income for the period | 26,345,807.38 | 174,812,846.85 |
7. Earnings per share | ||
7.1 Basic earnings per share | ||
7.2 Diluted earnings per share |
5. Consolidated Statement Of Cash Flows
Presented in RMB
Item | 6 months ended 30 June 2023 | 6 months ended 30 June 2022 |
1. Cash flows from operating activities: | ||
Proceeds from sales of goods | 164,207,230.02 | 229,484,917.15 |
Net increase deposits from customers and placements from corporations in the same industry | ||
Net increase in loans from central bank | ||
Net increase in loans from other financial institution | ||
Cash premiums received on original insurance contracts | ||
Net proceeds from reinsurance | ||
Net increase in deposits and investment from insures | ||
Interest, handling charges and commissions received | ||
Net increase in fund deposits | ||
Net increase in proceeds from repurchase transactions | ||
Net proceeds from acting trading of securities | ||
Refund of taxes | 1,186,861.59 | 126,578,042.71 |
Proceeds from other operating activities | 74,221,616.32 | 74,351,558.97 |
Sub-total of cash inflows | 239,615,707.93 | 430,414,518.83 |
Payment for goods and services | 60,457,437.30 | 195,347,145.81 |
Net increase in loans and payments on behalf | ||
Net increase in deposits in central bank and interbank | ||
Payments of claims for original insurance contracts | ||
Net increase in fund paid | ||
Interest, handling charges and Interest | ||
Commissions on issuance policies paid |
Payment to and for employees | 36,762,506.08 | 51,050,768.33 |
Payments of various taxes | 193,176,702.79 | 543,263,187.50 |
Payment for other operating activities | 141,360,009.80 | 188,868,560.53 |
Sub-total of cash outflows | 431,756,655.97 | 978,529,662.17 |
Net cash flows from operating activities | -192,140,948.04 | -548,115,143.34 |
2. Cash flows from investing activities: | ||
Proceeds from disposal of investments | ||
Investment returns received | 1,644,822.69 | 813,960.00 |
Net proceeds from disposal of fixed assets, intangible assets and other long-term assets | 4,269.60 | 2,907.50 |
Net proceeds from disposal of subsidiaries and other business units | 139,836,766.74 | |
Proceeds from other investing activities | 136,800,000.00 | 115,000,000.00 |
Sub-total of cash inflows | 138,449,092.29 | 255,653,634.24 |
Payment for acquisition of fixed assets, intangible assets and other long-term assets | 251,357.46 | 126,730.24 |
Payment for acquisition of investments | ||
Net increase in pledged loans | ||
Net payment for acquisition of subsidiaries and other business units | ||
Payment for other investing activities | ||
Sub-total of cash outflows | 251,357.46 | 126,730.24 |
Net cash flows from investing activities | 138,197,734.83 | 255,526,904.00 |
3. Cash flows from financing activities: | ||
Proceeds from investors | ||
Including: Proceeds from non-controlling shareholders of subsidiaries | ||
Proceeds from borrowings | 101,586,610.82 | |
Proceeds from other financing activities | ||
Sub-total of cash inflows | 101,586,610.82 | |
Repayments of borrowings | ||
Payment for dividends, profit distributions or interest | 63,399,744.75 | |
Including: Dividends and profits paid to non-controlling profits paid to non-controlling shareholders of subsidiaries | ||
Payment for other financing activities | ||
Sub-total of cash outflows | 63,399,744.75 | |
Net cash flows from financing activities | 38,186,866.07 |
4. Effect of foreign exchange rate changes on cash and cash equivalents | 172,392.24 | 250,898.91 |
5. Net increase in cash and cash equivalents | -15,583,954.90 | -292,337,340.43 |
Add: Cash and cash equivalents as at the year beginning | 190,365,069.48 | 612,293,635.15 |
6. Cash and cash equivalent as at the year end | 174,781,114.58 | 319,956,294.72 |
6. Cash Flow Statement of the Company as the Parent
Presented in RMB
Item | 6 months ended 30 June 2023 | 6 months ended 30 June 2022 |
1. Cash flows from operating activities: | ||
Proceeds from sales of goods | 55,240,004.34 | 29,085,968.85 |
Refund of taxes | 1,143,272.60 | 76,602,710.88 |
Proceeds from other operating activities | 40,177,648.86 | 187,691,251.29 |
Sub-total of cash inflows | 96,560,925.80 | 293,379,931.02 |
Payment for goods and services | 2,806,232.29 | 11,660,146.24 |
Payment to and for employees | 21,711,708.29 | 25,700,808.60 |
Payments of various taxes | 132,822,106.11 | 490,780,774.26 |
Payment for other operating activities | 51,390,420.56 | 32,302,748.93 |
Sub-total of cash outflows | 208,730,467.25 | 560,444,478.03 |
Net cash flows from operating activities | -112,169,541.45 | -267,064,547.01 |
2. Cash flows from investing activities: | ||
Proceeds from disposal of investments | ||
Investment returns received | 6,644,822.69 | 813,960.00 |
Net proceeds from disposal of fixed assets, intangible assets and other long-term assets | 0.00 | 2,907.50 |
Net proceeds from disposal of subsidiaries and other business units | 0.00 | 177,009,030.00 |
Proceeds from other investing activities | 136,800,000.00 | 206,413,737.42 |
Sub-total of cash inflows | 143,444,822.69 | 384,239,634.92 |
Payment for acquisition of fixed assets, intangible assets and other long-term assets | 213,690.10 | 78,576.00 |
Payment for acquisition of investments | ||
Net payment for acquisition of subsidiaries and other business units | ||
Payment for other investing activities | 14,320,000.00 | 207,513,737.42 |
Sub-total of cash outflows | 14,533,690.10 | 207,592,313.42 |
Net cash flows from investing activities | 128,911,132.59 | 176,647,321.50 |
3. Cash flows from financing activities: | ||
Proceeds from investors | ||
Proceeds from borrowings | 62,586,610.82 | 0.00 |
Proceeds from other financing activities | ||
Sub-total of cash inflows | 62,586,610.82 | 0.00 |
Repayments of borrowings | ||
Payment for dividends, profit distributions or interest | 61,711,260.00 | 0.00 |
Payment for other financing activities | ||
Sub-total of cash outflows | 61,711,260.00 | 0.00 |
Net cash flows from financing activities | 875,350.82 | 0.00 |
4. Effect of foreign exchange rate changes on cash and cash equivalents | 0.00 | 0.00 |
5. Net increase in cash and cash equivalents | 17,616,941.96 | -90,417,225.51 |
Add: Cash and cash equivalents as at the year beginning | 90,800,999.60 | 297,680,168.50 |
6. Cash and cash equivalent as at the year end | 108,417,941.56 | 207,262,942.99 |
7. Consolidated Statement Of Changes in Equity
Presented in RMB
Item | 6 months ended 30 June 2023 | ||||||||||||||
Attributable to shareholders’ equity of the parent company | Non-controlling interests | Total equity | |||||||||||||
Share capital | Other equity instruments | Capital reserves | Less: treasury shares | Other comprehensive income | Specific reserve | Surplus reserve | Generic Risk Reserve | Retained earnings | Other | Subtotal | |||||
Preference shares | Perpetual bond | Other | |||||||||||||
I. Balance at the end of last year | 1,011,660,000.00 | 978,244,910.11 | 25,926,720.85 | 275,253,729.26 | 1,713,155,187.48 | 4,004,240,547.70 | 282,301,229.97 | 4,286,541,777.67 | |||||||
Add: Changes of accounting policies | |||||||||||||||
Correction of prior period |
errors | |||||||||||||||
Business combination involving enterprises under common control | |||||||||||||||
Other | |||||||||||||||
II. Balance at the Beginning of the Year | 1,011,660,000.00 | 978,244,910.11 | 25,926,720.85 | 275,253,729.26 | 1,713,155,187.48 | 4,004,240,547.70 | 282,301,229.97 | 4,286,541,777.67 | |||||||
III. Changes in equity during the year (“- “for decrease) | -1,772,722.17 | -98,829,442.81 | -100,602,164.98 | -2,450,558.98 | -103,052,723.96 | ||||||||||
(I) Total comprehensive income | -1,772,722.17 | -37,118,182.81 | -38,890,904.98 | -2,450,558.98 | -41,341,463.96 | ||||||||||
(II) Shareholder’s contributions and decrease of capital | |||||||||||||||
1.Contribution by ordinary shareholders | |||||||||||||||
2. Holders of other equity instruments invested capital | |||||||||||||||
3. Equity settled share-based payments | |||||||||||||||
4.Other | |||||||||||||||
(III) Appropriation of | -61,711 | -61,711 | -61,711 |
profits | ,260.00 | ,260.00 | ,260.00 | ||||||||||||
1.Appropriation for surplus reserves | 0.00 | 0.00 | |||||||||||||
2.Appropriation for general reserves | 0.00 | 0.00 | |||||||||||||
3.Distribution to shareholders | -61,711,260.00 | -61,711,260.00 | -61,711,260.00 | ||||||||||||
4.Other | |||||||||||||||
(IV)Transfer within equity | |||||||||||||||
1.Share capital increased by capital reserves transfer | |||||||||||||||
2.Share capital increased by surplus reserves transfer | |||||||||||||||
3.Transfer of surplus reserve to offset losses | |||||||||||||||
4. Remeasurement of defined benefit plan liability orasset transfer to retained earnings | |||||||||||||||
5. Other comprehensive income carried forward to retained earnings |
6.Other | 0.00 | ||||||||||||||
(V) Special Reserve | |||||||||||||||
1.Appropriation during the year | |||||||||||||||
2.Utilization during the year | |||||||||||||||
(VI) Others | |||||||||||||||
IV. Balance at the end of the period | 1,011,660,000.00 | 978,244,910.11 | 24,153,998.68 | 275,253,729.26 | 1,614,325,744.67 | 3,903,638,382.72 | 279,850,670.99 | 4,183,489,053.71 |
Presented in RMB
Item | 6 months ended 30 June 2022 | ||||||||||||||
Attributable to shareholders’ equity of the parent company | Non-controlling interests | Total equity | |||||||||||||
Share capital | Other equity instruments | Capital reserves | Less: treasury shares | Other comprehensive income | Specific reserve | Surplus reserve | Generic Risk Reserve | Retained earnings | Other | Subtotal | |||||
Preference shares | Perpetual bond | Other | |||||||||||||
I. Balance at the end of last year | 1,011,660,000.00 | 978,244,910.11 | 36,088,963.95 | 241,144,854.93 | 1,671,121,562.98 | 3,938,260,291.97 | 289,068,877.44 | 4,227,329,169.41 | |||||||
Add: Changes of accounting policies | |||||||||||||||
Correction of prior period errors | |||||||||||||||
Business combination involving enterprises under common control | |||||||||||||||
Other | |||||||||||||||
II. Balance at the Beginning of the Year | 1,011,660,000.00 | 978,244,910.11 | 36,088,963.95 | 241,144,854.93 | 1,671,121,562.98 | 3,938,260,291.97 | 289,068,877.44 | 4,227,329,169.41 | |||||||
III. Changes in equity during the year (“- “for decrease) | -9,093,155.55 | 67,552,023.40 | 58,458,867.85 | -3,376,011.12 | 55,082,856.73 | ||||||||||
(I) Total comprehensive income | 2,356,617.71 | 145,128,330.14 | 147,484,947.85 | -3,376,011.12 | 144,108,936.73 | ||||||||||
(II) Shareholder’s contributions and decrease of capital | |||||||||||||||
1.Contribution by ordinary shareholders | |||||||||||||||
2. Holders of other equity instruments invested capital | |||||||||||||||
3. Equity settled share-based payments | |||||||||||||||
4.Other | |||||||||||||||
(III) Appropriation of profits | -89,026,080.00 | -89,026,080.00 | -89,026,080.00 | ||||||||||||
1.Appropriation for surplus | |||||||||||||||
1.Appropriation for general reserves | |||||||||||||||
3.Distributi | - | - | - |
on to shareholders | 89,026,080.00 | 89,026,080.00 | 89,026,080.00 | ||||||||||||
4.Other | |||||||||||||||
(IV)Transfer within equity | -11,449,773.26 | 11,449,773.26 | |||||||||||||
1.Share capital increased by capital reserves transfer | |||||||||||||||
2..Share capital increased by surplus reserves transfer | |||||||||||||||
3.Transfer of surplus reserve to offset losses | |||||||||||||||
4. Remeasurement of defined benefit plan liability orasset transfer to retained earnings | |||||||||||||||
5. Other comprehensive income carried forward to retained earnings | -11,449,773.26 | 11,449,773.26 | |||||||||||||
6.Other | |||||||||||||||
(V) Special Reserve | |||||||||||||||
1. Appropriation during the year | |||||||||||||||
2.Utilization during |
the year | |||||||||||||||
(VI) Others | |||||||||||||||
IV. Balance at the end of the period | 1,011,660,000.00 | 978,244,910.11 | 26,995,808.40 | 241,144,854.93 | 1,738,673,586.38 | 3,996,719,159.82 | 285,692,866.32 | 4,282,412,026.14 |
8. Consolidated Statement Of Changes in Equity Of The Parent Entity
Presented in RMB
Item | 6 months ended 30 June 2023 | |||||||||||
Share capital | Other equity instruments | Capital reserves | Less: treasury shares | Other comprehensive income | Specific reserve | Surplus reserve | Retained earnings | Other | Total equity | |||
Preference shares | Perpetual bonds | Other | ||||||||||
I. Balance at the end of last year | 1,011,660,000.00 | 964,711,931.13 | 1,379,426.68 | 252,124,115.85 | 1,692,510,832.80 | 3,922,386,306.46 | ||||||
Add: Changes of accounting policies | ||||||||||||
Correction of prior period errors | ||||||||||||
Other | ||||||||||||
II. Balance at the Beginning of the Year | 1,011,660,000.00 | 964,711,931.13 | 1,379,426.68 | 252,124,115.85 | 1,692,510,832.80 | 3,922,386,306.46 | ||||||
III. Changes in equity during the year (“- “for decrease) | 352,055.06 | -35,717,507.68 | -35,365,452.62 | |||||||||
(I) Total comprehensive income | 352,055.06 | 25,993,752.32 | 26,345,807.38 | |||||||||
(II) Shareholder’s contributions and decrease of |
capital | ||||||||||||
1.Contribution by ordinary shareholders | ||||||||||||
2. Holders of other equity instruments invested capital | ||||||||||||
3. Equity settled share-based payments | ||||||||||||
4.Other | ||||||||||||
(III) Appropriation of profits | -61,711,260.00 | -61,711,260.00 | ||||||||||
1.Appropriation for surplus | ||||||||||||
2.Distribution to shareholders | -61,711,260.00 | -61,711,260.00 | ||||||||||
3.Other | ||||||||||||
(IV)Transfer within equity | ||||||||||||
1.Share capital increased by capital reserves transfer | ||||||||||||
2..Share capital increased by surplus reserves transfer | ||||||||||||
3.Transfer of surplus reserve to offset losses | ||||||||||||
4. Remeasurement of defined benefit plan |
liability orasset transfer to retained earnings | ||||||||||||
5. Other comprehensive income carried forward to retained earnings | ||||||||||||
6.Other | ||||||||||||
(V) Special Reserve | ||||||||||||
1. Appropriation during the year | ||||||||||||
2.Utilization during the year | ||||||||||||
(VI) Others | ||||||||||||
IV. Balance at the end of the period | 1,011,660,000.00 | 964,711,931.13 | 1,731,481.74 | 252,124,115.85 | 1,656,793,325.12 | 3,887,020,853.84 |
Presented in RMB
Item | 6 months ended 30 June 2022 | |||||||||||
Share capital | Other equity instruments | Capital reserves | Less: treasury shares | Other comprehensive income | Specific reserve | Surplus reserve | Retained earnings | Other | Total equity | |||
Preference shares | Perpetual bonds | Other | ||||||||||
I. Balance at the end of last year | 1,011,660,000.00 | 964,711,931.13 | 1,373,954.19 | 218,015,241.52 | 1,474,557,043.86 | 3,670,318,170.70 | ||||||
Add: Changes of accounting policies | ||||||||||||
Correction of prior period errors | ||||||||||||
Other | ||||||||||||
II. Balance at the Beginning | 1,011,660,000.0 | 964,711,931.13 | 1,373,954.19 | 218,015,241.52 | 1,474,557,043.8 | 3,670,318,170.7 |
of the Year | 0 | 6 | 0 | |||||||||
III. Changes in equity during the year (“- “for decrease) | 5,945,521.73 | 85,786,766.85 | 91,732,288.58 | |||||||||
(I) Total comprehensive income | 5,945,521.73 | 174,812,846.85 | 180,758,368.58 | |||||||||
(II) Shareholder’s contributions and decrease of capital | ||||||||||||
1.Contribution by ordinary shareholders | ||||||||||||
2. Holders of other equity instruments invested capital | ||||||||||||
3. Equity settled share-based payments | ||||||||||||
4.Other | ||||||||||||
(III) Appropriation of profits | -89,026,080.00 | -89,026,080.00 | ||||||||||
1.Appropriation for surplus | ||||||||||||
2.Distribution to shareholders | -89,026,080.00 | -89,026,080.00 | ||||||||||
3.Other | ||||||||||||
(IV)Transfer within equity | ||||||||||||
1.Share capital increased by capital reserves |
transfer | ||||||||||||
2..Share capital increased by surplus reserves transfer | ||||||||||||
3.Transfer of surplus reserve to offset losses | ||||||||||||
4. Remeasurement of defined benefit plan liability orasset transfer to retained earnings | ||||||||||||
5. Other comprehensive income carried forward to retained earnings | ||||||||||||
6.Other | ||||||||||||
(V) Special Reserve | ||||||||||||
1. Appropriation during the year | ||||||||||||
2.Utilization during the year | ||||||||||||
(VI) Others | ||||||||||||
IV. Balance at the end of the period | 1,011,660,000.00 | 964,711,931.13 | 7,319,475.92 | 218,015,241.52 | 1,560,343,810.71 | 3,762,050,459.28 |
III. Company information
1. Company’s profile
Shenzhen Special Economic Zone Real Estate and Properties (Group) Co., Ltd. (the “Group” or “the Company”)was established in July 1993, as approved by the Shenzhen Municipal Government with document SFBF (1993)
724. The Company issued A shares on 15 September 1993 and issued B shares on 10 January 1994. On 31 August1994, the issued B shares were listed in the New York Exchange market as class A recommendation. The total
share capital is 1,011,660,000 shares, including 891,660,000 of A shares, and 120,000,000 of B shares. Thecompany business license registration number is 91440300192179585N, and the registered capital is CNY1,011,660,000.00. The Company’s headquarter is located at Floor 45-48, Shen Fang Plaza, Ren Min South Road,Luo Hu District, Shen Zhen, Guangdong province.On 13 October 2004, according to the document No. (2004) 223 “Decision on establishing Shenzhen investmentHolding Co., Ltd.” issued by State-Owned Assets Supervision and Administration Commission of ShenzhenMunicipal Government, the former major shareholder – Shenzhen Construction Investment Holding Companywith two assets management companies merged, and the Shenzhen Investment Holding Co., Ltd formed, whichcauses the Company's equity to change. By the State-owned Assets Supervision and Administration Commissionof the state council, and quasi-exempt obligations tender offer as approved by China Security RegulatoryCommittee with document No. (2005)116, this issue of consolidated has been authorized and the change inregistration had been completed on 15 February 2006. At the end of the reporting period, Shenzhen InvestmentHolding Limited holds 564,353,838 shares of the Company (55.78% of the total share capital). The shares are alltradable unrestricted shares.The Company has established the corporate governance structure of the general meeting of shareholders, theboard of directors and the board of supervisors. At present, it has human resources, financing plan department,marketing department, engineering management department etc.The Company and its subsidiaries (hereinafter referred to as "the Group") are principally engaged in real estatedevelopment and sales, property leasing and management, retail merchandising and trade, hotel, equipmentinstallation and maintenance, construction, interior decoration, etc.
2. These financial statements and notes to the financial statements were approved by the 8th Board ofDirectors of the Group at the 4th Board meeting dated on 25 August 2023.
3. The scope of consolidated statements
For details, please refer to Note VIII “Changes in consolidation scope” and Note IX “Interests in other entities”.IV. The Basis of Preparation of Financial Statements
1. Basis of preparation
The financial statements are prepared in accordance with the Accounting Standards for Business Enterprises and
corresponding application guidance, interpretations and other related provisions issued by the Ministry of Finance
(collectively, " Accounting Standards for Business Enterprises "). In addition, the Group also discloses relevant
financial information in accordance with the China Securities Regulatory Commission's "Information Disclosure
and Reporting Rules for Companies that Public Issued Securities" No. 15 - General Provisions on Financial
Reporting (revised in 2014).
These financial statements are presented on going concern basis.
The Group adopts the accrual basis of accounting. Except for certain financial instruments, the financial
statements are prepared under the historical cost convention. In the event that impairment of assets occurs, a
provision for impairment is made accordingly in accordance with the relevant regulations.
2.Going concernThese financial statements are presented on going concern basis.V. Significant accounting policies and accounting estimatesReminders on specific accounting policies and accounting estimates:
The Company take its own operation and production characteristics into consideration to determine the revenuerecognition policy. Please refer to Note V.32 “Revenue” for specific accounting policy.
1. Statement of compliance with the Accounting Standards for Business EnterprisesThe financial statements have been prepared in compliance with the Accounting Standards for BusinessEnterprises to truly and completely present the Group’s and the Company’s financial position as at 30 June 2023and the Group’s and the Company’s operating results and cash flows for the half-year ended 30 June 2023.
2. Accounting period
The accounting period of the Group is from 1 January to 31 December.
3. Operating cycle
The Group's operating cycle is 12 months.
4. Functional currency
The Group and domestic subsidiaries (including Hong Kong) use Chinese Yuan (“CNY”) as their functionalcurrency. Offshore subsidiaries, Great Wall Real Estate Co. LTD, determine American dollar as their functionalcurrency according to the primary economic environment where they operate. The financial statements of theGroup have been prepared in CNY.
5. Accounting treatments for business combinations involving enterprises under common controland business combinations not involving enterprises under common control
(1) Business combinations involving enterprises under common control
For a business combination involving enterprises under common control, the assets acquired and liabilitiesassumed are measured based on their carrying amounts in the consolidated financial statements of the ultimatecontrolling party at the combination date, except for adjustments due to different accounting policies. Thedifference between the carrying amount of the net assets acquired and the consideration paid for thecombination is adjusted against share premium in the capital reserve, with any excess adjusted against retainedearnings.Business combination involving enterprises under common control through step by step multiple transactions.In individual financial statements, the share of the net assets of the consolidated party in the book value of theconsolidated financial statements of the ultimate controlling party of the net assets of the consolidated party onthe consolidation date, calculated by the shareholding ratio on the consolidation date, shall be taken as the initialinvestment cost of the investment; the difference between the initial investment cost and the sum of the book
value of the investment held before the merger plus the book value of the newly consideration paid shall beadjusted for the capital reserve. If the capital reserve is insufficient to be written down, the retained earningsshall be adjusted.In the consolidated financial statement, the assets and liabilities of the consolidated party shall be measuredaccording to the book value of the consolidated financial statement of the ultimate controlling party on themerger date, except for the adjustment due to different accounting policies; the balance between the book valueof the investment held before the merger and the book value of the newly consideration paid and the book valueof the net assets obtained during the merger shall be adjusted for capital reserves. If the capital reserves areinsufficient to be written down, the retained earnings shall be adjusted. For long-term equity investment held bythe merging party prior to acquiring control of the merged party, the relevant profit and loss, othercomprehensive income and other changes in owners' equity which have been recognized by the merging partyfrom later of the date on which the original equity was acquired and the date on which the merging party and themerged party are ultimately under the control of the same party to the merging date, shall offset the beginningretained earnings or profits and losses of the current period.
(2) Business combinations involving enterprises not under common control
For business combinations involving enterprises not under common control, the consideration costs includeacquisition-date fair value of assets transferred, liabilities incurred or assumed and equity securities issued bythe acquirer in exchange for control of the acquiree. At the acquisition date, the acquired assets, liabilities andcontingent liabilities of the acquiree are measured at their fair value. The acquiree’s identifiable asset, liabilitiesand contingent liabilities, are recognised at their acquisition-date fair value.Where the combination cost exceeds the acquirer’s interest in the fair value of the acquiree’s identifiable netassets, the difference is recognised as goodwill, and subsequently measured on the basis of its cost lessaccumulated impairment provisions. Where the combination cost is less than the acquirer’s interest in the fairvalue of the acquiree’s identifiable net assets, the difference is recognised in profit or loss for the current periodafter reassessment.Business combination involving enterprises not under common control through step by step multipletransactions.In individual financial statements, the sum of the book value of the equity investment held by the purchaserbefore the purchase date and the cost of the newly added investment on the purchase date is taken as the initialinvestment cost of the investment. If other comprehensive income of equity investment held before the purchasedate is recognized by using the equity method, such other comprehensive income will not be treated on thepurchase date, and the investment will be treated on the same basis as the direct disposal of relevant assets orliabilities by the invested entity. The owners' equity recognized as a result of changes in owners' equity otherthan net profit and loss, other comprehensive income and profit distribution of the investee shall be transferredto the current profit and loss during the disposal period at the time of disposal of the investment. If the equityinvestment held before the purchase date is measured at fair value, the accumulated change in fair valueoriginally recorded in other comprehensive income is transferred to the profit and loss of the current periodwhen it is calculated by the cost method.In the consolidated financial statement, the consolidated cost is the sum of the consideration paid on thepurchase date and the fair value on the purchase date of the equity held by the Purchaser prior to the purchasedate. For the equity held by the Purchaser before the purchase date, it shall be re-measured according to the fairvalue of the equity on the purchase date, and the difference between the fair value and the book value shall berecorded into the current income; The equity held by the Purchaser before the purchase date involves othercomprehensive income, and other changes in owners' equity turn into current income on the purchase date,except for other comprehensive income generated by changes in net liabilities or net assets of the remeasuredincome plan of the investee.
(3) Transaction costs for business combination
The overhead for the business combination, including the expenses for audit, legal services, valuation advisory,and other administrative expenses, are recorded in profit or loss for the current period when incurred. Thetransaction costs of equity or debt securities issued as the considerations of business combination are includedin the initial recognition amount of the equity or debt securities.
6. Consolidated financial statements
(1) Scope of consolidated financial statements
The scope of consolidated financial statements is based on control. Control exists when the Group has powerover the investee; exposure, or rights to variable returns from its involvement with the investee and has theability to affect its returns through its power over the investee. A subsidiary is an entity that is controlled by theGroup (including enterprise, a portion of an investee as a deemed separate component, and structured entitycontrolled by the enterprise).
(2) Basis of preparation of consolidated financial statements
The consolidated financial statements are prepared by the Group based on the financial statements of the Groupand its subsidiaries and other relevant information. When preparing consolidated financial statements, theaccounting policies and accounting periods of the subsidiaries should be consistent with those established by theGroup, and all significant intra-group balances and transactions are eliminated.Where a subsidiary or business was acquired during the reporting period, through a business combinationinvolving enterprises under common control, the financial statements of the subsidiary or business are includedin the consolidated financial statements as if the combination had occurred at the date that the ultimatecontrolling party first obtained control.Where a subsidiary or business was acquired during the reporting period, through a business combinationinvolving enterprises not under common control, the identifiable assets and liabilities of the acquiredsubsidiaries or business are included in the scope of consolidation from the date that control commences.The portion of a subsidiary’s equity that is not attributable to the parent is treated as non-controlling interestsand presented separately in the consolidated balance sheet within shareholders’ equity. The portion of net profitor loss of subsidiaries for the period attributable to non-controlling interests is presented separately in theconsolidated income statement below the “net profit” line item. When the amount of loss for the current periodattributable to the non-controlling shareholders of a subsidiary exceeds the non-controlling shareholders’ shareof the opening owners’ equity of the subsidiary, the excess is still allocated against the non-controlling interests.
(3) Changes in non-controlling interests
Where the Group acquires a non-controlling interest from a subsidiary’s non-controlling shareholders ordisposes of a portion of an interest in a subsidiary without a change in control, the transaction is treated asequity transaction, and the book value of shareholder’s equity attributed to the Group and to the non-controllinginterest is adjusted to reflect the change in the Group’s interest in the subsidiaries. The difference between theproportion interests of the subsidiary’s net assets being acquired or disposed and the amount of theconsideration paid or received is adjusted to the capital reserve in the consolidated balance sheet, with anyexcess adjusted to retained earnings.
(4) Disposal of subsidiaries
When the Group loses control over a subsidiary because of disposing part of equity investment or other reasons,the remaining part of the equity investment is re-measured at fair value at the date when the control is lost. Again or loss is recognised in the current period and is calculated by the aggregate of consideration received indisposal and the fair value of remaining part of the equity investment deducting the share of net assets inproportion to previous shareholding percentage in the former subsidiary since acquisition date and the goodwill.Other comprehensive income related to the former subsidiary is transferred to profit or loss when the control islost, except for the comprehensive income arising from the movement of net liabilities or assets in the formersubsidiary’s re-measurement of defined benefit plan.
7. Joint arrangement classification and accounting treatment for joint operationA joint arrangement is an arrangement of which two or more parties have joint control. The Group classifiesjoint arrangements into joint operations and joint ventures.
(1) Joint operations
A joint operation is a joint arrangement whereby the joint operators have rights to the assets, and obligations forthe liabilities, relating to the arrangement.The Group recognizes the following items relating to its interest in a joint operation, and account for them inaccordance with relevant accounting standards:
A. its solely-held assets, and its share of any assets held jointly;B. its solely-assumed liabilities, and its share of any liabilities assumed jointly;C. its revenue from the sale of its share of the output arising from the joint operation;D. its share of the revenue from the sale of the output by the joint operation; andE. its solely-incurred expenses, and its share of any expenses incurred jointly.
(2) Joint ventures
A joint venture is a joint arrangement whereby the joint venturers have rights to the net assets of thearrangement.The Group adopts equity method under long-term equity investment in accounting for its investment in jointventure.
8. Cash and cash equivalents
Cash comprises cash in hand and deposits that can be readily withdrawn on demand. Cash equivalents includeshort-term, highly liquid investments that are readily convertible to known amounts of cash and are subject toan insignificant risk of change in value.
9. Foreign currency transactions and translation of foreign currency financial statements
(1) Foreign currency transactions
Foreign currency transactions are translated to the functional currency of the Group at the spot exchange rateson the dates of the transactions.Monetary items denominated in foreign currencies are translated to Renminbi at the spot exchange rate at thebalance sheet date. The resulting exchange differences between the spot exchange rate on balance sheet date andthe spot exchange rate on initial recognition or on the previous balance sheet date are recognised in profit or loss.Non-monetary items that are measured at historical cost in foreign currencies are translated to Renminbi using theexchange rate at the transaction date. Non-monetary items that are measured at fair value in foreign currencies aretranslated using the exchange rate at the date the fair value is determined. The resulting exchange differences arerecognised in profit or loss or other comprehensive income according to the nature of non-monetary items.
(2) Translation of foreign currency financial statements
When translating the foreign currency financial statements of overseas subsidiaries, assets and liabilities offoreign operation are translated to Renminbi at the spot exchange rate at the balance sheet date. Equity items,excluding “retained earnings”, are translated to Renminbi at the spot exchange rates at the transaction dates.Income and expenses of foreign operation are translated to Renminbi at the spot exchange rates at thetransaction dates.Cash flow statement of foreign operation is translated to Renminbi at the spot exchange rates at the cash flowoccurrence dates. Effect of foreign exchange rate changes on cash and cash equivalents is presented separatelyas “Effect of foreign exchange rate changes on cash and cash equivalents” in the cash flow statement.The resulting translation differences are recognised in other comprehensive income in shareholders’ equity ofbalance sheet.The translation differences accumulated in shareholders’ equity with respect to a foreign operation are transferredto profit or loss in the period when the foreign operation is disposed.
10. Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one enterprise and a financial liabilityor an equity instrument of another enterprise.
(1) Recognition and derecognition of financial instruments
A financial asset or a financial liability is recognized when the Group becomes a party to the contractualprovisions of a financial instrument.If one of the following criteria is met, a financial asset is derecognised:
①the contractual rights to the cash flows from the financial asset expire; or
②The financial asset was transferred, and the transfer qualifies for derecognition in accordance withcriteria set out below in “Transfer of Financial Assets”.A financial liability (or part of it) is derecognized when its contractual obligation (or part of it) is discharged orcancelled or expires. If the Group (as a debtor) makes an agreement with the creditor to replace the currentfinancial liability with assuming a new financial liability, and contractual provisions are different in substance,the current financial liability is derecognized and a new financial liability is recognized.If the financial assets are traded regularly, the financial assets are recognized and derecognized at the transactiondate.
(2) Classification and measurement of financial assets
The Group classifies financial assets as subsequently measured at amortized cost, fair value through othercomprehensive income or fair value through profit or loss at initial recognition on the basis of both the entity’sbusiness model for managing the financial assets and the contractual cash flow characteristics of the financialasset.Financial assets measured at amortized costThe Group classifies the financial assets that meet the following conditions and are not designated as measuredat fair value through profit or loss as financial assets measured at amortized cost:
? The Group's business model of managing the financial assets is to collect contractual cash flows as thetarget;? The contractual terms of the financial asset give rise on specified dates to cash flows that are solelypayments of principal and interest on the principal amount outstanding.After the initial recognition, the effective interest rate method is adopted to measure the amortized cost of suchfinancial assets. Gains or losses arising from financial assets that are measured at amortized cost and are notpart of any hedging relationship shall be recorded in the current profit or loss when the recognition is terminated,amortized according to the effective interest method or the impairment is recognized.Financial assets measured at fair value through other comprehensive incomeThe Group classifies the financial assets that simultaneously meet the following conditions and are not specifiedas measured at fair value through profit or loss as financial assets measured at fair value through othercomprehensive income:
? The Group's business model of managing the financial asset aims at both collecting the contract cashflow and selling the financial asset.? The contractual terms of the financial asset give rise on specified dates to cash flows that are solelypayments of principal and interest on the principal amount outstanding.After the initial recognition, this type of financial assets are subsequently measured at fair value. The interest,impairment loss or gain and exchange loss or gain calculated using the effective interest rate method areincluded in the current profit or loss, while other gains or losses are included in other comprehensive income.When derecognized, the accumulated gains or losses previously recorded in other comprehensive income shallbe transferred out from other comprehensive income and recorded in the current profit or loss.Financial assets measured at fair value through profit or loss
In addition to the above financial assets measured at amortized cost and measured at fair value through othercomprehensive income, the Group classifies all other financial assets as financial assets measured at fair valuethrough profit or loss. At the time of initial recognition, in order to eliminate or significantly reduce accountingmismatches, the Group irrevocably designates some financial assets that should have been measured atamortized cost or measured at fair value through other comprehensive income as financial assets measured atfair value through profit or loss.After the initial recognition, this kind of financial asset is subsequently measured at its fair value, and the gainsor losses (including interest and dividend income) generated are recorded into the current profit or loss, unlessthe financial asset is part of the hedging relationship.However, for non-trading equity instrument investment, the Group irrevocably designates it as a financial assetmeasured at fair value through other comprehensive income at the time of initial recognition. The designation ismade on a single investment basis and the relevant investments meet the definition of an equity instrument fromissuer's perspective.After the initial recognition, this kind of financial assets are subsequently measured at fair value. Satisfieddividend income is included in the profit or loss, other gains or losses and changes in fair value are included inother comprehensive income. When derecognized, the accumulated gains or losses previously recorded in othercomprehensive income are transferred out and recorded in retained earnings.The business model of managing financial assets refers to how the group manages financial assets to generatecash flows. The business model determines whether the cash flow from the financial assets under managementof the Group is derived from the receipt of contractual cash flows, the sale of financial assets or a combinationof both. The Group determines its business model for managing financial assets on the basis of objective factsand the specific business objectives for the management of financial assets determined by key managementpersonnel.The Group assesses the contractual cash flow characteristics of financial assets to determine whether thecontractual cash flows generated by the relevant financial assets on specified dates are solely payments ofprincipal and interest on the principal amount outstanding. Principal refers to the fair value of financial assets atinitial recognition. Interest includes consideration for the time value of money, the credit risk associated withthe amount of principal outstanding over a given period, and other basic lending risks and costs, as well as aprofit margin. In addition, the Group assesses contractual terms that may cause a change in the time distributionor amount of the contractual cash flows of financial assets to determine whether they meet the requirements ofthe above contractual cash flow characteristics.Only when the Group changes the business model of managing financial assets, all affected related financialassets shall be reclassified on the first day of the first reporting period after the change of the business model,otherwise the financial assets shall not be reclassified after the initial recognition.Financial assets are measured at fair value at the time of initial recognition. For financial assets measured at fairvalue through profit or loss, relevant transaction costs are directly recorded into current profit or loss; for otherclasses of financial assets, the relevant transaction costs are included in the initial recognition amount. Foraccounts receivable arising from the sale of products or provision of services, which do not contain or do nottake into account the material financing component, the Group is entitled to collect the consideration amount asexpected as the initial recognition amount.
(3) Classification and measurement of financial liabilities
At the time of initial recognition, the financial liabilities of the Group are classified as: financial liabilitiesmeasured at fair value through current profit or loss, and financial liabilities measured at amortized cost. Forfinancial liabilities that are not classified as measured at fair value through profit or loss, relevant transactioncosts are included in their initial recognized amounts.Financial liabilities measured at fair value through profit or loss
Financial liabilities measured at fair value through profit or loss include trading financial liabilities and financialliabilities designated at the time of initial recognition as measured at fair value through profit or loss. For suchfinancial liabilities, the subsequent measurement shall be made according to the fair value, and the gains orlosses caused by changes in the fair value as well as the dividends and interest expenses related to such financialliabilities shall be recorded into current profit or loss.Financial liabilities measured at amortized costFor other financial liabilities, the effective interest rate method shall be adopted, and the subsequentmeasurement shall be made at the amortized cost, and the gains or losses arising from derecognition oramortization shall be recorded into current profit or loss.The distinction between financial liabilities and equity instrumentsFinancial liabilities refer to liabilities that meet one of the following conditions:
① A contractual obligation to deliver cash or other financial assets to other parties.
② a contractual obligation to exchange financial assets or financial liabilities with another party underpotentially adverse conditions.
③ Non-derivative instrument contracts that will be settled with or available to the firm's own equityinstruments in the future, under which the firm will deliver a variable number of its own equity instruments.
④ a derivative contract in which the firm's own equity instruments are to be settled or used in the future,except for a derivative contract in which a fixed number of its own equity instruments are to be exchanged for afixed amount of cash or other financial assets.An equity instrument is a contract that certifies ownership of the remaining interest in an enterprise's assets afterall liabilities have been deducted.If the Group cannot unconditionally avoid fulfilling a contractual obligation by delivering cash or otherfinancial assets, such contractual obligation meets the definition of a financial liability.If a financial instrument is to be settled with or available to the Group's own equity instrument, considerationneeds to be given to whether the Group's own equity instrument used to settle the instrument is to be used as asubstitute for cash or other financial assets or to give the holder of the instrument the remaining interest in theIssuer's assets after deduction of all liabilities. If the former, the instrument is a financial liability of the group; Ifit is the latter, the instrument is an equity instrument of the Group.
(4) Fair value of financial instruments
For the determination of fair value of financial assets and financial liabilities, see Note V. 36.
(5) Impairment of financial assets
On the basis of expected credit losses, the Group conducts impairment accounting treatment for the followingitems and confirms the loss provision:
? Financial assets measured at amortized cost;? Receivables and creditor's rights investments measured at fair value and accounted for in othercomprehensive income;
? Contract assets as defined in the Accounting Standards for Business Enterprises No. 14 - Revenue;? Lease receivables;Financial guarantee contract (measured at fair value and its changes included in the current profit and loss,except the financial asset transfer does not meet the conditions for termination of recognition or continues toinvolve the transferred financial asset).Measurement of expected credit lossesThe term "expected credit loss" refers to the weighted average of the credit loss of a financial instrumentweighted by the risk of default. Credit loss refers to the difference between all contractual cash flows receivableunder the contract and all cash flows expected to be collected by the Group discounted at the original effectiveinterest rate, that is, the present value of all cash shortages.The Group calculates the probabilistic weighted amount of the present value of the difference between the cashflows receivable under the Contract and the cash flows expected to be received and recognizes the expectedcredit loss, taking into account reasonable and evidential information concerning past events, current conditionsand Itemions of future economic conditions, and weighting the risk of default.he Group measures the expected credit losses of financial instruments at different stages. If the credit risk of thefinancial instrument has not increased significantly since the initial recognition, the Group shall measure theloss provision in accordance with the expected credit loss in the next 12 months in the first stage;If the creditrisk of a financial instrument has increased significantly since the initial recognition but no credit impairmenthas occurred, it is in the second stage, and the Group measures the loss provision according to the expectedcredit loss of the entire life period of the instrument; If credit impairment has occurred to a financial instrumentsince its initial recognition, it is in the third stage, and the Group shall measure the loss provision according tothe expected credit loss of the entire life period of the instrument.For financial instruments with low credit risk at the balance sheet date, the Group assumes that the credit riskhas not increased significantly since the initial recognition, and measures the loss provision in accordance withthe expected credit loss for the next 12 months.The term "expected credit loss over the entire expected life of a financial instrument" refers to the expectedcredit loss resulting from all possible events of default during the entire expected life of a financial instrument.The expected credit loss within the next 12 months refers to the expected credit loss caused by the default eventof the financial instrument that may occur within 12 months after the date of the balance sheet (or the expectedduration of the financial instrument if the expected duration of the financial instrument is less than 12 months)and is part of the expected credit loss over the entire maturity period.When measuring expected credit losses, the Group shall take into account the longest contract period (includingthe option to renew the contract) for which the enterprise is exposed to credit risk.The Group calculates interest income on the basis of the book balance before impairment provisions and theeffective interest rate for financial instruments in stage I and stage II and with lower credit risk. For financialinstruments in the third stage, the interest income is calculated on the basis of the amortized cost of the bookbalance less the impairment provision and the effective interest rate.Notes receivable, accounts receivable and contract assetsFor notes receivable, accounts receivable and contract assets, regardless of whether there is a material financingcomponent, the Group always measures its loss provision in accordance with the amount equivalent to theexpected credit loss within the whole duration period.
When a single financial asset cannot assess the information of expected credit loss at a reasonable cost, theGroup divides the notes receivable and accounts receivable into portfolios according to the credit riskcharacteristics, calculates the expected credit loss on the basis of the portfolios, and determines the portfoliosbased on the following:
A. Notes receivable? Notes receivable portfolio 1: banker acceptance notes? Notes receivable portfolio 2: commercial acceptance notesB. Receivables
? Accounts receivable portfolio 1: related parties receivable? Accounts Receivable Portfolio 2: Receivable from property sales? Accounts receivable portfolio 3: receivable from other customersC. Contract assets? Contract Portfolio 1: Product Sales? Contract Portfolio 2: Works ConstructionFor the notes receivable and contract assets divided into portfolios, the Group calculates the expected credit lossthrough default risk exposure and the expected credit loss rate over the entire duration by referring to thehistorical credit loss experience, combining the current situation and the forecast of the future economicsituation.For the receivables divided into portfolios, the Group refers to the historical credit loss experience andcombines the current situation with the forecast of the future economic situation to compile a comparison tablebetween the age of receivables/overdue days and the expected credit loss rate of the entire duration period tocalculate the expected credit loss.Other receivablesThe Group divides other receivables into several portfolios according to the credit risk characteristics, andcalculates the expected credit loss on the basis of the portfolio. The basis for determining the portfolio is asfollows:
? Other Receivables Portfolio 1: Receivables from government agencies? Other Receivables Portfolio 2: Other receivables from employee’s petty cash? Other receivables portfolio 3: Other receivables from the collecting and paying on behalf? Other receivables portfolio 4: Other receivables from other customers? Other receivables portfolio 5: Receivables from related partiesFor other receivables divided into portfolios, the Group calculates the expected credit loss by default riskexposure and the expected credit loss rate over the next 12 months or the entire duration.
Debt investment and Other debt investmentFor debt investment and other debt investment, the Group calculates the expected credit loss based on thedefault risk exposure and the expected credit loss rate within the next 12 months or the entire duration accordingto the nature of the investment and the various types of counterparties and risk exposures.An assessment of a significant increase in credit riskBy comparing the risk of default of financial instruments on the balance sheet date with the risk of default onthe initial recognition date, the Group determines the relative change of default risk within the expectedduration of financial instruments, so as to evaluate whether the credit risk of financial instruments hassignificantly increased since the initial recognition.In determining whether credit risk has increased significantly since the initial recognition, the Group considersreasonable and informed information, including forward-looking information that can be obtained withoutunnecessary additional cost or effort. Information considered by the Group includes:
? The debtor fails to pay the principal and interest as due under the contract;? A material deterioration, if any, of the external or internal credit rating of the financial instrument thathas occurred or is expected;? A serious deterioration of the debtor's business results occurred or is expected;? A change in the existing or anticipated technological, market, economic or legal environment whichwill have a material adverse effect on the debtor's ability to repay the Group.? According to the nature of financial instruments, the Group evaluates whether credit risk increasessignificantly on the basis of individual financial instruments or a combination of financial instruments. Whenassessing on the basis of a portfolio of financial instruments, the Group may classify financial instruments basedon common credit risk characteristics, such as overdue information and credit risk rating.If overdue for more than 30 days, the Group determines that the credit risk of the financial instrument hasincreased significantly.The Group believes that the financial assets are in default under the following circumstances:
? The Borrower is unlikely to pay its arrears to the Group in full and this assessment does not take intoaccount any recourse actions taken by the Group, such as liquidating the collateral (if held); or? Financial assets are more than 90 days overdue.A financial asset whose credit has been impairedOn the balance sheet date, the Group evaluates whether credit impairment has occurred in financial assetsmeasured at amortized cost and debt investments measured at fair value and whose changes are included inother comprehensive income. When one or more events which have an adverse effect on the expected futurecash flow of a financial asset occur, the financial asset becomes a financial asset with credit impairment.Evidence of credit impairment of financial assets includes the following observable information:
? Major financial difficulties occur to the issuer or the debtor;? A breach of contract by the debtor, such as a default or late payment of interest or principal;
? The Group, for economic or contractual considerations relating to the debtor's financial difficulties,gives concessions that the debtor would not have made under any other circumstances;? The debtor is likely to go bankrupt or undergo other financial restructuring;? The financial difficulties of the issuer or debtor result in the disappearance of an active market for thefinancial asset.Presentation of expected credit loss provisionsIn order to reflect the change of the credit risk of financial instruments since the initial recognition, the Groupre-measures the expected credit loss on each balance sheet date, and the increase or rolleback amount of the lossprovision thus formed shall be recorded into the current profit and loss as an impairment loss or profit. For afinancial asset measured at amortized cost, the loss provision shall offset the carrying value of the financialasset as stated in the balance sheet; For the debt investment measured at fair value and its changes included inother comprehensive income, the Group recognizes its loss provision in other comprehensive income and doesnot deduct the book value of the financial asset.Written-offIf the Group no longer reasonably expects that the contractual cash flow of a financial asset can be recovered inwhole or in part, the carrying balance of the financial asset shall be directly written down. Such writedownsconstitute termination recognition of the relevant financial assets. This usually occurs when the Groupdetermines that the debtor does not have assets or sources of income that generate sufficient cash flow to repaythe amount to be written down. However, in accordance with the Group's procedures for recovering amountsdue, the financial assets that have been written down may still be affected by the execution activities.If a financial asset that has been written down is recovered later, it shall be carried back as an impairment lossand recorded in the profit and loss of the current period.
(6) Transfer of financial assets
Transfer of financial assets is the transfer or delivery of financial assets to another party (the transferee) otherthan the issuer of financial assets.A financial asset is derecognised if the Group transfers substantially all the risks and rewards of ownership ofthe financial asset to the transferee. A financial asset is not derecognised if the Group retains substantially all therisks and rewards of ownership of the financial asset to the transferee.The Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset,and the accounting treatment is shown as following: if the Group has forgone control over the financial asset,the financial assets is derecognized, and new assets and liabilities are recognized. If the Group retains controlover the financial asset, the financial asset is recognised to the extent of its continuing involvement in thetransferred financial asset, and an associated liability is recognised.
(7) Offset of financial assets and financial liabilities
Where the Group has the legal right to set off the recognized financial asset and financial liability, and iscurrently able to enforce such legal right, and the Group plans to settle the financial asset on a net basis orsimultaneously realize the financial asset and pay off the financial liability, the financial asset and financialliability shall be shown in the balance sheet with the offset amount. In addition, financial assets and financialliabilities shall be separately presented in the balance sheet and shall not be set off against each other.
11. Notes Receivable
Please refer to Notes V.10 Financial Instrument.
12. Accounts Receivable
Please refer to Notes V.10 Financial Instrument.
13. Accounts receivable financing
Please refer to Notes V.10 Financial Instrument.
14. Other receivables
Determination method and accounting treatment method of expected credit loss of other receivablesPlease refer to Note V 10. financial instruments.
15. Inventories
(1) Classification
The Group's inventory is classified by real estate development and non-real estate development. Inventory ismainly real estate development projects, including development costs and development products. Developmentcost include the development costs of development products to be developed and development products underconstruction. Development products include completed development products and development products intendedfor sell but temporarily leased. Non-real estate development projects include raw materials, finished goods andengineering construction.
(2) Measurement method of cost of inventories
The group’s inventories are measured at actual cost when acquired. The actual cost of developing a productincludes land transfer fee, infrastructure expenditure, construction and installation project expenditure, borrowingexpenses incurred before the completion of the development project and other related expenses in thedevelopment process.。When a product is developed and shipped, the actual cost is determined by specificidentification method.Raw materials and finished goods are calculated using weighted average method.
(3) Basis for determining the net realisable value and method for provision for obsolete inventoriesNet realisable value is the estimated selling price in the ordinary course of business less the estimated costs ofcompletion and the estimated costs necessary to make the sale and relevant taxes. The net realisable value ismeasured based on the verified evidences and considerations for the purpose of holding inventories and theeffect of post balance sheet events.
Any excess of the cost over the net realisable value of inventories is recognised as a provision for obsoleteinventories, and is recognised in profit or loss. The Group usually recognises provision for decline in value ofinventories by a single inventory item. If the factors caused the value of inventory previously written-downhave disappeared, the provision for decline in value of inventories previously made is reversed.
(4) Inventory count system
The Group maintains a perpetual inventory system
(5) Amortization methods of low-value consumables and packaging materialsLow-value consumables are charged to profit or loss when they are used.
16. Contract assets
17. Contract costs
Contract costs include incremental costs incurred to obtain the contract and contract performance costs.Incremental costs incurred to obtain a contract are costs (such as sales commissions, etc.) that the Group wouldnot have incurred without the contract. If the cost is expected to be recovered, the Group will recognize it as anasset as the contract acquisition cost. Other expenses incurred by the Group for the acquisition of contracts,other than the incremental costs expected to be recovered, are recorded into the profit and loss of the currentperiod when incurred.If the cost incurred for the performance of the contract does not fall within the scope of accounting standards forinventories and other enterprises and meets the following conditions at the same time, the Group will recognizeit as an asset as the contract performance cost:
① The costs are directly related to a current or prospective contract and include direct labor, direct materials,overhead (or similar), costs that are expressly borne by the customer and other costs incurred solely inconnection with the contract;
② This cost increases the Group's future resources for fulfilling its performance obligations;
③ The cost is expected to be recovered.
Assets with contract acquisition cost recognition and assets with contract performance cost recognition(hereinafter referred to as "assets related to contract cost") shall be amortized on the same basis as incomerecognition of goods or services related to such assets and shall be recorded into current profit and loss. If theamortization period does not exceed one year, it will be recorded in the current profit and loss at the time ofoccurrence.When the book value of the assets related to the contract cost is higher than the difference between thefollowing two items, the Group shall make provision for impairment of the excess part and recognize it asimpairment loss of the assets:
① the remaining consideration that the Group is expected to obtain as a result of the transfer of the goods orservices related to the asset;
② Estimate the costs to be incurred for the transfer of the relevant goods or services.
The contract performance cost recognized as an asset shall be shown in the "Inventory" item with anamortization period of no more than one year or one normal operating cycle at the time of initial recognition,while the amortization period exceeding one year or one normal operating cycle at the time of initial recognitionshall be shown in the item of "Other Non-current Assets".The contract acquisition cost recognized as an asset shall be shown in the item of "Other Current Assets" withan amortization period of less than one year or one normal operating cycle at the time of initial recognition, andshall be shown in the item of "Other Non-current Assets" with an amortization period of more than one year orone normal operating cycle at the time of initial recognition.
18. Assets held for sale
(1) Classification and measurement of non-current assets or disposal groups held for saleThe Group classifies a non-current asset or disposal group as held for sale when the carrying amount of the non-current asset or disposal group will be recovered through a sale transaction (including an exchange transactionof non-monetary assets with commercial substance) rather than through continuing use.Above mentioned non-current assets do not include investment properties subsequently measured with the fairvalue model, biological assets measured at fair value less costs to sell, assets arising from employee benefits,financial assets, deferred tax assets and contractual rights under insurance contracts.The disposal group is a group of assets to be disposed of, by sale or otherwise, together as a whole in a singletransaction, and liabilities directly associated with those assets that will be transferred in the transaction. Incertain circumstances, disposal groups include goodwill acquired in a business combination.A non-current asset or disposal group is classified as held for sale when all the following criteria are met:
According to the customary practices of selling such asset or disposal group in similar transactions, the non-current asset or disposal group is available for immediate sale in its present condition; The sale is highlyprobable to occur, that is, the Group has made a resolution on a sale plan and entered into a legally bindingpurchase agreement with other parties. The sale is expected to be completed within one year. The Group that iscommitted to a sale plan involving loss of control of a subsidiary classifies all the investment in that subsidiaryas held for sale in its separate financial statements, and classifies all the assets and liabilities of that subsidiaryas held for sale in its consolidated financial statements, when the classification criteria for held for sale are met,regardless of whether the Group retains a non-controlling interest in its former subsidiary after the sale.Non-current assets or disposal groups held for sale are initially and subsequently measured at the lower ofcarrying amount and fair value less costs to sell. Any excess of the carrying amount over the fair value less coststo sell is recognised as an impairment loss in profit or loss. The impairment loss recognised for a disposal groupfirstly reduces the carrying amount of goodwill allocated to the disposal group, and then reduces the carryingamount of other non-current assets pro rata on the basis of the carrying amount of each non-current asset in thedisposal group.The Group recognises a gain for any subsequent increase in fair value less costs to sell of an asset, but not inexcess of the cumulative impairment loss that has been recognised after classified as held for sale. The reducedcarrying amount of goodwill is not recovered.The Group does not depreciate (or amortise) a non-current asset while it is classified as held for sale or while itis part of a disposal group classified as held for sale. Interest and other expenses attributable to the liabilities ofa disposal group classified as held for sale continue to be recognised. If an investment or a part of investment inan associate or a joint venture is classified as held for sale, equity method is not used for the part classified asheld for sale, while equity method is used for the rest part (the part not classified as held for sale) continually.When the Group does not have material impact on an associate or a joint venture due to the sale transaction, itstops using equity method.
The Group measures a non-current asset that ceases to be classified as held for sale at the lower of:
① its carrying amount before the asset or disposal group was classified as held for sale, adjusted for anydepreciation, amortisation or impairment that would have been recognised had the asset or disposal group notbeen classified as held for sale.
② its recoverable amount.
(2) Discontinued operations
The Group classifies a component as a discontinued operation either upon disposal of the operation or when theoperation meets the criteria to be classified as held for sale if it is separately identifiable and satisfies one of thefollowing conditions:
① It represents a separate major line of business or a separate geographical area of operations;
② It is part of a single co-ordinated plan to dispose of a separate major line of business or a separategeographical area of operations;
③ It is a subsidiary acquired exclusively with a view to resale.
(3) Presentation
The Group presents a non-current asset classified as held for sale and the assets of a disposal group classified asheld for sale as ―Assets held for sale‖ in balance sheet. The liabilities of a disposal group classified as held forsale is presented as ―Liabilities held for sale‖ in balance sheet.The Group presents profit or loss from discontinued operations separately from profit or loss from continuingoperations in income statement. Impairment loss and reversal amount and any disposal gain or loss of a non-current asset or disposal group classified as held for sale that does not meet the definition of a discontinuedoperation is included in profit or loss from continuing operations. Any gain or loss from continuing operation ofdiscontinued operations, including impairment loss and reversal amount, and disposal gain or loss is included inprofit or loss from discontinued operations.A disposal group which is planned to cease operation rather than for sale, and meets the criteria of a part ofdiscontinued operation, the Group presents it as discontinued operation from the date of cessation.Where an operation is classified as discontinued in the current period, profit or loss from continuing operationsand profit or loss from discontinued operations are separately presented in the income statement for the currentperiod. If the Group ceases to classify a discontinued operation as held for sale, the information previouslypresented in discontinued operations is reclassified and included in income from continuing operations for allperiods presented.
19. Long-term equity investments
Long-term equity investments include equity investments in subsidiaries and equity investments in jointventures and associates. An associate is an enterprise over which the Group has significant influence.
(1) Determination of initial investment cost
The initial cost of a long-term equity investment acquired through a business combination involving enterprisesunder common control is the Group’s share of the carrying amount of the subsidiary’s equity in the consolidatedfinancial statements of the ultimate controlling party at the combination date. For a long-term equity investment
obtained through a business combination not involving enterprises under common control, the initial cost is thecombination cost.A long-term equity investment acquired other than through a business combination: A long-term equityinvestment acquired other than through a business combination is initially recognised at the amount of cash paidif the Group acquires the investment by cash, or at the fair value of the equity securities issued if an investmentis acquired by issuing equity securities.
(2) Subsequent measurement and recognition of profit or loss
Long-term equity investments in subsidiaries are accounted for using the cost method. An investment in a jointventure or an associate is accounted for using the equity method for subsequent measurement.For a long-term equity investment which is accounted for using the cost method, Except for cash dividends orprofit distributions declared but not yet distributed that have been included in the price or consideration paid inobtaining the investments, the Group recognises its share of the cash dividends or profit distributions declaredby the investee as investment income for the current period.For a long-term equity investment which is accounted for using the equity method, where the initial cost of along-term equity investment exceeds the Group’s interest in the fair value of the investee’s identifiable netassets at the date of acquisition, the investment is initially recognised at cost. Where the initial investment costis less than the Group’s interest in the fair value of the investee’s identifiable net assets at the date of acquisition,the investment is initially recognised at the investor’s share of the fair value of the investee’s identifiable netassets, and the difference is recognised in profit or loss.Under the equity method, the Group recognises its share of the investee’s profit or loss and other comprehensiveincome as investment income or losses and other comprehensive income respectively, and adjusts the carryingamount of the investment accordingly. Once the investee declares any cash dividends or profit distributions, thecarrying amount of the investment is reduced by the amount attributable to the Group. Changes in the Group’sshare of the investee’s owners’ equity, other than those arising from the investee’s net profit or loss, othercomprehensive income or profit distribution (referred to as “other changes in owners’ equity”), is recogniseddirectly in the Group’s equity, and the carrying amount of the investment is adjusted accordingly. In calculatingits share of the investee’s net profits or losses, other comprehensive income and other changes in owners’ equity,the Group recognises investment income and other comprehensive income after making appropriate adjustmentsto align the accounting policies or accounting periods with those of the Group based on the fair value of theinvestee’s identifiable net assets at the date of acquisition.When the Group becomes capable of exercising joint control or significant influence (but not control) over aninvestee due to additional investment or other reasons, the Group uses the fair value of the previously-heldequity investment, together with additional investment cost, as the initial investment cost under the equitymethod. The difference between the fair value and carrying amount of the previously-held equity investment,and the accumulated changes in fair value included in other comprehensive income, shall be transferred to profitor loss for the current period upon commencement of the equity method.When the Group can no longer exercise control over an investee due to partial disposal of the equity investmentor other reasons, and the remaining equity after disposal can exercise joint control of or significant influenceover an investee, the remaining equity is adjusted as using equity method from acquisition. When the remainingequity can no longer exercise joint control of or significant influence over an investee, the remaining equityinvestment shall be accounted for using Accounting Standard for Business Enterprises No. 22-Recognition andMeasurement of Financial Instruments, and the difference between the fair value and the carrying amount of theremaining equity investment shall be charged to profit or loss for the current period at the date of loss of control.When the Group can no longer exercise control over an investee due to new capital injection by other investors,and the Group can exercise joint control of or significant influence over an investee, the Group recognizes its
share of the investee’s new added net assets using new shareholding percentage. The difference between its newshare of the investee’s new added net assets and its decreased shareholding percentage of the originalinvestment is recognized in profit or loss. And the Group adjusts to the equity method using the newshareholding percentage as if it uses the equity method since it obtains the investment.Unrealised profits and losses resulting from transactions between the Group and its associates or joint venturesare eliminated to the extent of the Group’s interest in the associates or joint ventures. Unrealised losses resultingfrom transactions between the Group and its associates or joint ventures are eliminated in the same way asunrealised gains but only to the extent that there is no impairment.
(3) Criteria for determining the existence of joint control or significant influence over an investeeJoint control is the contractually agreed sharing of control of an arrangement, which exists only when decisionsabout the relevant activities require the unanimous consent of the parties sharing control. When assessingwhether the Group can exercise joint control over an investee, the Group first considers whether no singleparticipant party is in a position to control the investee’s related activities unilaterally, and then considerswhether strategic decisions relating to the investee’s related activities require the unanimous consent of allparticipant parties that sharing of control. All the parties, or a group of the parties, control the arrangementcollectively when they must act together to direct the relevant activities. When more than one combination ofthe parties can control an arrangement collectively, joint control does not exist. A party that holds onlyprotective rights does not have joint control of the arrangement.Significant influence is the power to participate in the financial and operating policy decisions of an investeebut does not have control or joint control over those policies. When determining whether the Group can exercisesignificant influence over an investee, the effect of potential voting rights (for example, warrants, share optionsand convertible bonds) held by the Group or other parties that are currently exercisable or convertible shall beconsidered.When the Group, directly or indirectly through subsidiaries, owns 20% of the investee (including 20%) or morebut less than 50% of the voting shares, it has significant influence over the investee unless there is clearevidence to show that in this case the Group cannot participate in the production and business decisions of theinvestee, and cannot form a significant influence. When the Group owns less than 20% of the voting shares,generally it does not have significant influence over the investee, unless there is clear evidence to show that inthis case the Group can participate in the production and business decisions of the investee so as to form asignificant influence.
(4) Method of impairment testing and impairment provision
For investments in subsidiaries, associates and joint ventures, refer to Note V. 26 for the Group’s method ofasset impairment.
23. Investment property
Investment properties are properties held either to earn rental income or for capital appreciation or for both. TheGroup’s investment properties include leased houses, leased buildings, leased land use rights. In addition, for avacant building held by the company for operating lease, if the board of directors (or a similar institution)makes a written resolution expressly indicating that it is used for operating lease and the intention of holdingdoes not change in the short term, it is also considered as Investment property.Investment properties are initially measured at acquisition cost, and depreciated or amortized using the samepolicy as that for fixed assets or intangible assets.For the impairment of the investment properties accounted for using the cost model, refer to Note V.26.
The balance of the disposal income from the sale, transfer, scrapping or damage of the investment real estateafter deducting its book value and relevant taxes and fees shall be recorded into the current profit and loss.
21. Fixed assets
(1) Recognition of fixed assets
Fixed assets represent the tangible assets held by the Group for use in production of goods, use in supply ofservices, rental or for administrative purposes with useful lives over one accounting year.Fixed assets are only recognised when its related economic benefits are likely to flow to the Group and its costcan be reliably measured.Fixed asset are initially measured at cost.Subsequent expenses related to fixed assets shall be recorded into cost of fixed assets when its related economicbenefits are likely to flow to the Group and its cost can be reliably measured; the cost of daily repairs to fixedassets that do not meet the conditions for subsequent expenditures for capitalization of fixed assets, at the timeof occurrence, shall be recorded into the profit or loss of the current period or the cost of the related assets. Forthe part that is replaced, its carrying amount is derecognized
(2) Depreciation of fixed assets
Class | Depreciation Method | Estimated useful life (years) | Residual value rate % | Depreciation rate % |
Plant and buildings | straight-line depreciation | 30 | 5 | 3.17% |
Motor vehicles | straight-line depreciation | 6 | 5 | 15.83% |
Electronic equipment and others | straight-line depreciation | 5 | 5 | 19.00% |
The cost of a fixed asset is depreciated using the straight-line method since the state of intended use, unless thefixed asset is classified as held for sale. Not considering impairment provision, the estimated useful lives,residual value rates and depreciation rates of each class of fixed assets are as table above. For impaired fixedassets, cumulative amount of impairment provision is deducted in determining the depreciation rate.
(3) Other
For the impairment of the fixed assets, please refer to Note V.26.Useful lives, estimated residual values and depreciation methods are reviewed at least at each year-end. TheGroup adjusts the useful lives of fixed assets if their expected useful lives are different with the originalestimates and adjusts the estimated net residual values if they are different from the original estimates.When a fixed asset is disposed of, or when it is expected that no economic benefit will be generated through theuse or disposal, the fixed asset shall be derecognised. Proceeds from the disposal of fixed assets sold,
transferred, scrapped or damaged, net of their carrying amount and associated taxes, shall be recorded in theprofit or loss for the current period.
21. Construction in progress
Construction in progress is recognized based on the actual construction cost, including all expenditures incurredfor construction Items, capitalised borrowing costs and any other costs directly attributable to bringing the assetto working condition for its intended use.Construction in progress is transferred to fixed asset when it is ready for its intended use.For the impairment of construction in progress, please refer to Note V.26
23. Borrowing costs
(1) Capitalisation criteria
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying assetshall be capitalised as part of the cost of that asset. Other borrowing costs are expensed in profit or loss asincurred. The capitalisation of borrowing costs shall commence only when the following criteria are met:
①capital expenditures have been incurred, including expenditures that have resulted in payment of cash,transfer of other assets or the assumption of interest-bearing liabilities;②borrowing costs have been incurred;③the activities that are necessary to prepare the asset for its intended use or sale have commenced.
(2) Capitalisation period
The capitalisation of borrowing costs ceases when the asset under acquisition or construction becomes ready forits intended use, the borrowing costs incurred thereafter are recognised in profit or loss for the current period.Capitalisation of borrowing costs is suspended during periods in which the acquisition or construction of a fixedasset is interrupted abnormally and the interruption lasts for more than 3 months, until the acquisition orconstruction is resumed.
(3) Capitalisation rate of borrowing costs and calculation basis of capitalised amountFor interest expense actually incurred on specific borrowings, the eligible capitalised amount is the net amountof the borrowing costs after deducting any investment income earned before some or all of the funds are usedfor expenditures on the qualifying asset. To the extent that the Group borrows funds generally and uses them forthe purpose of obtaining a qualifying asset, the Group shall determine the amount of borrowing costs eligiblefor capitalisation by applying a capitalisation rate to the expenditures on that asset, the capitalisation rate shallbe the weighted average of the borrowing costs applicable to the borrowings of the Group that are outstandingduring the period, other than borrowings specifically for the purpose of obtaining a qualifying asset.
In the capitalisation period, exchange differences of specific borrowings in foreign currency shall be capitalised;exchange differences of general borrowings in foreign currency is recognised in profit or loss for the currentperiod.
24. Right-of-use assets
(1) Conditions for the confirmation of the right-of-use assets
The Group's right-of-use assets refer to the Group's right to use the leased assets during the lease term as thelessee.On the beginning date of the lease period, the right-of-use assets shall be initially measured at cost. The costincludes: the initial measurement amount of the lease liability; For the amount of lease payment paid on or beforethe commencement date of the lease term, if there is a lease incentive, the relevant amount of lease incentivealready enjoyed will be deducted; Initial direct expenses incurred by the Group as the lessee; The costs which theGroup, as the Lessee, expects to incur in dismantling and removing the Leased Assets, restoring the premises onwhich the Leased Assets are located or restoring the Leased Assets to the state agreed in the Lease Terms. TheGroup, as the lessee, shall confirm and measure the costs of demolition and restoration in accordance with theAccounting Standards for Business Enterprises No. 13 - Contingencies. Subsequent adjustments are made for anyremeasurement of lease liabilities.
(2) Depreciation method of the right-of-use assets
The Group uses the straight line method of depreciation. Where the Group, as the lessee, can reasonablydetermine that it obtains the ownership of the leased assets upon expiration of the lease term, depreciation shall beaccrued over the remaining service life of the leased assets. Where it is impossible to reasonably determine thatthe ownership of the leased asset can be acquired at the expiration of the lease term, depreciation shall be accruedin the shorter period between the lease term and the remaining useful life of the leased asset.
(3) See Note V.26 for the impairment test method of the right-of-use assets and the provision forimpairment.
25. Intangible assets
(1) Valuation, Useful life and Impairment
Intangible assets include software, land use right, and patent rights etc.Intangible assets are stated at actual cost upon acquisition and the useful economic lives are determined at thepoint of acquisition. When the useful life is finite, amortisation method shall reflect the pattern in which theasset’s economic benefits are expected to be realised. If the pattern cannot be determined reliably, the straight-line method shall be used. An intangible asset with an indefinite useful life shall not be amortised.The Group shall review the useful life and amortisation method of an intangible asset with a finite useful life atleast at each year end. Changes of useful life and amortisation method shall be accounted for as a change inaccounting estimate.An intangible asset shall be derecognised in profit or loss when it is not expected to generate future economicbenefits.For the impairment of intangible assets, please refer to Note V.26 Impairment of Assets.
26. Impairment of long-term assets
The impairment of long-term equity investments in subsidiaries, associates and joint ventures, investmentproperties measured using a cost model, fixed assets, construction in progress, productive biological assetsmeasured using a cost model, intangible assets, goodwill, proven oil and gas mining rights and wells and relatedfacilities, etc. (Excluding inventories, investment property measured using a fair value model, deferred tax assetsand financial assets) is determined as follows:
At each balance sheet date, the Group determines whether there is any indication of impairment. If anyindication exists, the recoverable amount of the asset is estimated. In addition, the Group estimates therecoverable amounts of goodwill, intangible assets with indefinite useful lives and intangible assets not readyfor use at each year-end, irrespective of whether there is any indication of impairment.The recoverable amount of an asset is the higher of its fair value less costs to sell and its present value ofexpected future cash flows. The recoverable amount is estimated for each individual asset. If it is not possible toestimate the recoverable amount of each individual asset, the Group determines the recoverable amount for theasset group to which the asset belongs. An asset group is the smallest identifiable group of assets that generatescash inflows that are largely independent of the cash inflows from other assets or asset groups.An impairment loss is recognised in profit or loss when the recoverable amount of an asset is less than its carryingamount. A provision for impairment of the asset is recognised accordingly.For goodwill impairment test, the carrying amount of goodwill arising from a business combination is allocatedreasonably to the relevant asset group since the acquisition date. If the carrying amount of goodwill is unable tobe allocated to asset group, the carrying amount of goodwill will be allocated to asset portfolio. Asset group orportfolio of asset group is asset group or portfolio of asset group which can be benefit from synergies of abusiness combination and is not greater than the reportable segment of the Group.In impairment testing, if impairment indication exists in asset group or portfolio of asset group containingallocated goodwill, impairment test is first conducted for asset group or portfolio of asset group that does notcontain goodwill, and corresponding recoverable amount is estimated and any impairment loss is recognized.Then impairment test is conducted for asset group or portfolio of asset group containing goodwill by comparingits carrying amount and its recoverable amount. If the recoverable amount is less than the carrying amount,impairment loss of goodwill is recognized.Once an impairment loss is recognised, it is not reversed in a subsequent period.
27. Long-term deferred expenses
Long-term deferred expenses are recorded at the actual cost, and amortized using a straight-line method withinthe benefit period. For long-term deferred expense that cannot bring benefit in future period, the Grouprecognized its amortised cost in profit or loss for the current period.
28. Contract liabilities
Contract liabilities refer to the obligations of the company and its subsidiaries to transfer goods or services tocustomers for consideration received or receivable from customers. Contract assets and contract liabilities underthe same contract are presented on a net basis.
29. Employee benefits
(1) Scope of employee benefits
Employee benefits refer to all forms of consideration or compensation given by the Group in exchange forservice rendered by employees or for the termination of employment relationship. Employee benefits includeshort-term employee benefits, post-employment benefits, termination benefits and other long-term employeebenefits. Benefits provided to the Group’s spouse, children, dependents, family members of deceasedemployees or other beneficiaries are also part of the employee benefits.According to liquidity, employee benefits are presented as “employee benefits payable” and “long-termemployee benefits payable” on the balance sheet.In the current period, the Group has accrued for the actual wages, bonuses, medical insurance for employeesbased on standard rate, work injury insurance and maternity insurance and other social insurance and housingfund incurred and these are recognised as liabilities and corresponding costs in the profit or loss.
(2) Post-employment benefits
Post-employment benefit plan includes defined contribution plans and defined benefit plans. Definedcontribution plans are post-employment benefit plans under which an enterprise pays fixed contributions into aseparate fund and will have no future obligations to pay the contributions. Defined benefit plans are post-employment benefit plans other than defined contribution plans.Defined contribution plansDefined contribution plans include primary endowment insurance, unemployment insurance and corporatepension plan, etc.Besides basic pension insurance, the Group establishes corporate pension plans in accordance with the relatedpolicies of corporate pension regulations. Employees can join the pension plan voluntarily. The Group has noother significant commitment of employees’ social security.The Group shall recognise, in the accounting period in which an employee provides service, the contributionpayable to a defined contribution plan as a liability, with a corresponding charge to the profit or loss for thecurrent period or the cost of a relevant asset.Defined benefit plansFor a defined benefit plan, an actuarial valuation is performed by an independent actuary at the annual balancesheet date to determine the cost of providing benefits using the expected accrued benefit unit method. Theemployee compensation cost caused by the benefit plan of the Group includes the following components:
① Service cost, including current service cost, past service cost and settlement profit or loss. Including, thecurrent service cost refers to the increase in the present value of the defined benefit plan obligation caused bythe current provision of services by employees; The past service cost refers to the increase or decrease in thepresent value of the defined benefit plan obligations related to the employee services of the previous period as aresult of the modification of the defined benefit plan.
② Set the net interest on the net liabilities or net assets of the benefit plan, including the interest income onthe plan assets, the interest expense on the defined benefit plan obligations and the interest on the impact of theasset cap.
③ The changes caused by the remeasurement of the net liabilities or net assets of the benefit plan.Unless other accounting standards require or allow the cost of employee benefits to be included in the cost ofassets, the Group will include items ① and ② above in the current profit and loss; Item ③ is included inother comprehensive income and will not be turned back to profit and loss in subsequent accounting periods.
When the originally defined benefit plan is terminated, the part originally included in other comprehensiveincome within the scope of equity is carried forward to undistributed profit.
(3) Termination benefits
The Group provides for termination benefits to the employees and shall recognise an employee benefits liabilityfor termination benefits, with a corresponding charge to the profit or loss for the current period, at the earlier ofthe following dates: When the Group cannot unilaterally withdraw the offer of the termination benefits becauseof an employment termination plan or a redundancy proposal; or when the Group recognises the costs orexpenses relating to a restructuring that involves the payment of the termination benefits.For employees who implement the internal retirement plan, the economic compensation before the officialretirement date belongs to dismiss welfare. During the normal retirement date when the employees stopproviding services, the salary and social insurance premium to be paid by the employees who retire within theGroup shall be included in the profit and loss of the current period in a lump sum. Economic compensation afterthe official retirement date (such as the normal pension) shall be treated as after-service benefits.
(4) Other long-term employee benefits
Other long-term employee benefits provided by the Group to the employees satisfied the conditions forclassifying as a defined contribution plan; those benefits shall be accounted for in accordance with the aboverequirements relating to defined contribution plan. When the benefits satisfied a defined benefit plan, it shall beaccounted for in accordance with the above requirements relating to defined benefit plan, but the movement ofnet liabilities or assets in re-measurement of defined defined benefit plan shall be recorded in profit or loss forthe current period or cost of relevant assets.
30. Lease liabilities
Except for short-term leases and leases of low-value assets, the Group initially measures lease liabilities at theinception date of the lease term at the present value of unpaid lease payments on that date. The Group uses theinterest rate implicit in the lease as the discount rate to calculate the present value of the lease payments. If theinterest rate implicit in the lease cannot be determined, the incremental borrowing rate will be used as thediscount rate.Lease payments refer to the payments made by the Group to the lessor in relation to the right to use the leasedasset during the lease term, including: fixed payments and substantive fixed payments, and if there is a leaseincentive, deduct the amount related to the lease incentive; Variable lease payments that depend on an index orrate; The exercise price of a call option that the Group is reasonably certain to exercise; If the lease termreflects that the Group will exercise the option to terminate the lease, the amount to be paid for exercising theoption to terminate the lease; The estimated payables based on the residual value of guarantees provided by theGroup.Variable lease payments that depend on an index or rate are initially measured based on the index or rate at thecommencement date of the lease term. Variable lease payments that are not included in the measurement oflease liabilities will be included in the current profit and loss when they are actually incurred. After thecommencement date of the lease term, the Group calculates the interest expense of the lease liability in eachperiod of the lease term at a fixed periodic interest rate, and includes it in the current profit and loss or the costof related assets.After the commencement date of the lease term, the Group will re-measure the lease liabilities and adjust thecorresponding right-of-use assets under the following circumstances. If the book value of the right-of-use assetshas been reduced to zero and the lease liabilities still need to be further reduced, the difference will be included
in the current profit and loss. If the lease term changes or the evaluation result of the purchase option changes,the Group will remeasure the lease liability at the present value calculated by changed lease payments and therevised discount rate; If the payable amount of the guaranteed residual value or the index or ratio used todetermine lease payments changes, the Group will remeasure the lease liability based on the present valuecalculated by revised lease payments and original discount rate. If changes in floating interest rates result inchanges in lease payments, the Group will recalculate the lease liability using the revised discount rate.
31. Provisions
A provision is recognised for an obligation related to a contingency if all the following conditions are satisfied:
(1) the Group has a present obligation;
(2) it is probable that an outflow of economic benefits will be required to settle the obligation; and
(3) the amount of the obligation can be estimated reliably.
A provision is initially measured at the best estimate of the expenditure required to settle the related presentobligation. Factors pertaining to a contingency such as the risks, uncertainties and time value of money aretaken into account as a whole in reaching the best estimate.Where the effect of the time value of money ismaterial, provisions are determined by discounting the expected future cash flows. The Group reviews thecarrying amount of a provision at the balance sheet date and adjusts the carrying amount to the current bestestimate.If all or part of the expenditure necessary for settling the provision is expected to be compensated by a thirdparty, the amount of compensation is separately recognized as an asset when it is basically certain to be received.The recognized compensation amount shall not exceed the carrying amount of the provision.
32. Revenue
(1) General principles
The Group has fulfilled its contractual obligation to recognize revenue when the customer acquires control ofthe relevant goods or services.If the contract contains two or more performance obligations, the Group shall, on the commencement date ofthe contract, allocate the transaction price to each single performance obligation according to the relativeproportion of the individual selling price of the commodity or service committed by each single performanceobligation, and measure the income according to the transaction price allocated to each single performanceobligation.If one of the following conditions is satisfied, the Group shall perform its obligations within a certain period oftime; otherwise, it belongs to the performance obligation at a certain point:
① The Client obtains and consumes the economic benefits brought by the Group's performance at the sametime of the Group's performance.
② The customer can control the goods under construction during the performance of the Group.
③ The commodities produced by the Group during the performance of the Contract have irreplaceablepurposes, and the Group has the right to collect payment for the accumulated part of the performance completedso far during the whole period of the Contract.
For the performance obligations performed within a certain period of time, the Group shall recognize theincome in accordance with the performance progress within that period.If the performance progress cannot bereasonably determined and the Group is expected to be compensated for the costs already incurred, the revenueshall be recognized according to the amount of the costs already incurred until the performance progress can bereasonably determined.For performance obligations performed at a certain point, the Group recognizes revenue at the point when thecustomer acquires control of the relevant goods or services.In determining whether a customer has acquiredcontrol of goods or services, the Group will take into account the following indications:
① The Group has a current right to receive payment for the goods or services, that is, the Customer has acurrent obligation to pay for the goods.
② The Group has transferred the legal ownership of the commodity to the customer, that is, the customer hasthe legal ownership of the commodity.
③ The Group has transferred the goods in kind to the customer, that is, the customer has physical possession ofthe goods.
④ The Group has transferred the main risks and rewards on the ownership of the commodity to the customer,that is, the customer has acquired the main risks and rewards on the ownership of the commodity.
⑤ The customer has accepted the goods or services.
⑥ Other indications that the customer has acquired control of the product.
The Group's right to receive consideration for goods or services transferred to a customer (and this rightdepends on other factors other than the passage of time) is a contract asset which is subject to impairment on thebasis of expected credit losses. The Group's right, unconditional (depending only on the passage of time) tocollect consideration from customers is shown as a receivable. The Group's obligation to transfer goods orservices to customers for which it has received or receivable consideration is a contractual liability.The contract assets and contract liabilities under the same contract shall be presented on a net basis. If the netamount is the debit balance, it shall be presented under the item of "Contract Assets" or "Other Non-currentAssets" according to its liquidity; If the net amount is a credit balance, it shall be shown under the item"Contract Liabilities" or "Other Non-current Liabilities" according to its liquidity.
(2) Specific methods
The specific methods of the Group's revenue recognition are as follows:
① The method for recognizing revenue from property sales
(1) the sale contract has been signed and filed with housing construction bureau; (2) the property development iscompleted and pass the acceptance; (3) For Lump-sum payment, revenue is recognized by the group when theconsideration is fully received. For instalment payment, revenue is recognized when the first installment has beenreceived and the bank mortgage approval procedures have been completed. (4) completed the procedures forentering the partnership in accordance with the requirements stipulated in sale contract.
② The method for recognizing revenue from property services provided
According to property service contract, agreed service period, area served and unit price, revenue is recognizedevenly within agreed service period.
③ The method for recognizing revenue from construction activities
As the customer can control the goods under construction during the performance of the Group, the group shallrecognize the income in accordance with the performance progress within a certain period of time (except forperformance progress cannot be reasonably determined). The group shall determine the performance progressbased on cost incurred. If the performance progress cannot be reasonably determined and the Group is expected tobe compensated for the costs already incurred, the revenue shall be recognized according to the amount of thecosts already incurred until the performance progress can be reasonably determined. If the contract costs cannotbe recovered, the cost should be recognized immediately in current period when incurred. When the estimatedtotal cost of the contract is likely to exceed the total revenue of the contract, the cost of the main business and theestimated liabilities shall be recognized in accordance with the unexecuted loss contract. The loss shall berecognized as current cost and put into provisions.
④ The method for recognizing revenue from other income
Revenue from other income include income from hotel operations, etc. Rooms revenue from hotel operations shallbe recognized in accordance with the performance progress within agreed period, as the client obtains andconsumes the economic benefits brought by the Group’s performance and the group’s performance obligations hasperformed at a certain period of time. For other income, the group recognizes revenue at the point when thecustomer acquires control of the relevant goods or services, which indicate the group has a right to receivepayment for services or goods provided in accordance with the relevant contract.Differences in revenue recognition accounting policies for similar businesses due to different business models
33. Government grants
A government grant is recognised when there is reasonable assurance that the grant will be received and that theGroup will comply with the conditions attaching to the grant.If a government grant is in the form of a transfer of a monetary asset, it is measured at the amount received orreceivable. If a government grant is in the form of a transfer of a non-monetary asset, it is measured at fair value.If fair value cannot be reliably determined, it is measured at a nominal amount of CNY 1.Government grants related to assets are grants whose primary condition is that the Group qualifying for themshould purchase, construct or otherwise acquire long-term assets. Government grants related to income aregrants other than those related to assets.For government grants with unspecified purpose, the amount of grants used to form a long-term asset isregarded as government grants related to an asset, the remaining amount of grants is regarded as governmentgrants related to income. If it is not possible to distinguish, the amount of grants is treated as government grantsrelated to income.A government grant related to an asset is offset against the carrying amount of the related asset, or.recognised asdeferred income and amortised to profit or loss over the useful life of the related asset on a reasonable andsystematic manner. A grant that compensates the Group for expenses or losses already incurred is recognised inprofit or loss or offset against related expenses directly. A grant that compensates the Group for expenses or
losses to be incurred in the future is recognised as deferred income, and included in profit or loss or offsetagainst related expenses in the periods in which the expenses or losses are recognised. The Group applies aconsistent approach to same or similar government grant transactions.A grant related to ordinary activities is recognised as other income or offset against related expenses based onthe economic substance. A grant not related to ordinary activities is recognised as non-operating income.When a recognised government grant is reversed, carrying amount of the related asset is adjusted if the grantwas initially recognized as offset against the carrying amount of the related asset. If there is balance of relevantdeferred income, it is offset against the carrying amount of relevant deferred income. Any excess of the reversalto the carrying amount of deferred income is recognised in profit or loss for the current period. For othercircumstances, reversal is directly recognized in profit or loss for the current period.
34. Deferred tax assets and Deferred tax liabilities
Income tax comprises of current tax and deferred tax. Current tax and deferred tax are recognised in profit orloss except to the extent that they relate to transactions or items recognised directly in equity and goodwillarising from a business combination.Deferred tax assets and deferred tax liabilities arise from deductible and taxable temporary differencesrespectively, being the differences between the carrying amounts of assets and liabilities for financial reportingpurposes and their tax bases.All the taxable temporary differences are recognized as deferred tax liabilities except for those incurred in thefollowing transactions:
(1) initial recognition of goodwill, or assets or liabilities in a transaction that is not a business combination andthat affects neither accounting profit nor taxable profit (or deductible loss);
(2) taxable temporary differences associated with investments in subsidiaries, associates and joint ventures,and the Group is able to control the timing of the reversal of the temporary difference and it is probable that thetemporary difference will not reverse in the foreseeable future.The Group recognises a deferred tax asset for deductible temporary differences, deductible losses and taxcredits carried forward to subsequent periods, to the extent that it is probable that future taxable profits will beavailable against which deductible temporary differences, deductible losses and tax credits can be utilised,except for those incurred in the following transactions:
(1) a transaction that is not a business combination and that affects neither accounting profit nor taxable profit(or deductible loss);
(2) deductible temporary differences associated with investments in subsidiaries, associates and joint ventures,the corresponding deferred tax asset is recognized when both of the following conditions are satisfied: it isprobable that the temporary difference will reverse in the foreseeable future; and it is probable that taxableprofits will be available in the future against which the temporary difference can be utilized.At the balance sheet date, deferred tax is measured based on the tax consequences that would follow from theexpected manner of recovery or settlement of the carrying amount of the assets and liabilities, using tax rates
enacted at the reporting date that are expected to be applied in the period when the asset is recovered or theliability is settled.The carrying amount of a deferred tax asset is reviewed at each balance sheet date, and is reduced to the extentthat it is no longer probable that the related tax benefits will be utilised. Such reduction is reversed to the extentthat it becomes probable that sufficient taxable profits will be available.
35. Leases
(1) Identification of leases
On the commencement date of the contract, the Group, as lessee or lessor, assesses whether the customer underthe contract is entitled to receive almost all the economic benefits arising from the use of the identified assetsduring the use period and to direct the use of the identified assets during the use period.The Group considers thecontract to be a lease or an inclusive lease if one of the parties to the contract relinquishes control over the use ofone or more identified assets for a certain period of time in exchange for consideration.
(2) The Group acts as the lessee
On the commencement date of the lease, the Group recognizes the right-of-use assets and lease liabilities for allleases, except for simplified short-term leases and leases of low value assets.For the accounting policy of the Right-of-use assets, see Note V.24. For the accounting policy of lease liabilities,please refer to Note V. 30.Lease liabilities are initially measured at the present value of the outstanding lease payments at thecommencement date of the lease at the embedded interest rate on the lease. The rental payment amount includes:
fixed payment amount and substantial fixed payment amount. If there is lease incentive amount, the relevantamount of lease incentive amount will be deducted. Variable lease payments depending on an index or ratio;The exercise price of the Option provided that the Lessee is reasonably certain that the Option will be exercised;The amount to be paid to exercise the option to terminate the lease if the lease term reflects that the lessee willexercise the option to terminate the lease; And the amount expected to be payable based on the residual value ofthe security provided by the Lessee. The interest expense of the lease liability in each period of the lease termshall be calculated in accordance with the fixed periodic interest rate and recorded into the profit and loss of thecurrent period. The variable lease payment not included in the measurement of lease liabilities shall be recordedinto the current profit and loss when actually incurred.Short term leaseShort-term tenancy is a tenancy for a period of not more than 12 months at the commencement date of the tenancy,except for tenancies that include a purchase option.The Group will record the lease payment amount of short-term lease into the cost of relevant assets or currentprofit and loss in each period of the lease term according to the straight-line method [or other systemicallyreasonable method].For short-term lease, the Group chooses to adopt the above simplified treatment method for the items that meetthe short-term lease conditions in the following asset types according to the categories of leased assets.Low value asset leasing
Leasing of low-value assets refers to the leasing of a single leased asset whose value is less than CNY 100,000.00when it is a brand-new asset.The Group will include the lease payment of the low-value asset lease into the cost of the relevant asset or currentprofit and loss in each period of the lease term according to the straight-line method.For low-value asset leases, the Group chooses to adopt the above simplified treatment method according to thespecific situation of each lease.Change of leaseIf the lease is changed and the following conditions are met at the same time, the group accounts for the change asa separate lease: 1 the change extends the scope of the lease by adding the right to use one or more leased assets; 2the increased consideration is equivalent to the amount of the individual price of the extended portion of the lease,adjusted in accordance with the circumstances of the contract.If the lease change is not accounted for as a separate lease, on the effective date of the lease change, the companyredistributes the consideration of the contract after the change and redetermines the lease term, the lease liability isrecalculated at the present value of the changed lease payment and the revised discount rate.If the lease scope is reduced or the lease period is shortened as a result of the lease change, the company shalladjust the book value of the right-to-use assets accordingly, and record the relevant gains or losses related to thepartial or complete termination of the lease in the current profit and loss.If other lease changes result in lease liabilities being re-measured, the company shall adjust the book value of theright-to-use assets accordingly.
(3) The Group acts as the lessor
When the Group acts as the lessor, the leases that substantially transfer all the risks and rewards related to theownership of the assets are recognized as financial leases, and other leases other than financial leases arerecognized as operating leases.Finance leaseIn the case of financial leasing, the Group takes the net lease investment as the book value of the receivablefinance lease funds at the beginning of the lease period, and the net lease investment is the sum of theunguaranteed residual value and the present value of the unreceived lease income at the beginning of the leaseperiod discounted at the embodied interest rate.The Group, as the lessor, calculates and recognizes interest incomefor each period of the lease term at a fixed periodic rate.The variable lease payment obtained by the Group as thelessor and not included in the measurement of the net lease investment shall be recorded into the current profit andloss when actually incurred.The termination recognition and impairment of financial lease receivable shall be accounted for in accordancewith the provisions of the Accounting Standards for Business Enterprises No. 22 - Recognition and Measurementof Financial Instruments and the Accounting Standards for Business Enterprises No. 23 - Transfer of FinancialAssets.Operating leaseFor the rent in the operating lease, the Group shall recognize the profits and losses of the current period inaccordance with the straight-line method during each period of the lease term. The initial direct expenses incurredin connection with the operating lease shall be capitalized, allocated on the same basis as the recognition of rentalincome during the lease term and recorded into the current profit and loss in installments. The variable lease
payments obtained in connection with the operating lease and not included in the lease receipts shall be recordedinto the current profit and loss when actually incurred.Change of LeaseIf there is a change in the operating lease, the group shall, as of the effective date of the change, treat it as a newlease, the amount received in advance or in respect of the lease receivable relating to the lease prior to the changeshall be deemed to be the amount received for the new lease.If the financial lease is changed and the following conditions are met at the same time, the group accounts for thechange as a separate lease: 1 the change extends the scope of the lease by adding the right to use one or moreleased assets; 2 the increased consideration is equivalent to the amount of the individual price of the extendedportion of the lease, adjusted in accordance with the circumstances of the contract.Where a change in a financial lease is not accounted for as a separate lease, the group shall treat the changed leaseas follows: 1 if the change becomes effective on the lease commencement date, if the lease will be classified as anoperating lease, the group will treat it as a new lease from the effective date of the lease change, the book value ofthe leased asset shall be the net investment in the lease prior to the effective date of the lease change. 2 if thechange takes effect on the effective date of the lease, the lease will be classified as a financial lease, theaccounting treatment of the group is in accordance with the provisions of the "Accounting Standards forenterprises No. 22-recognition and measurement of financial instruments" concerning modification orrenegotiation of contracts.
36. Fair value measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderlytransaction between market participants at the measurement date.The Group measures related assets or liabilities at fair value assuming the assets or liabilities are exchanged in anorderly transaction in the principal market; in the absence of a principal market, assuming the assets or liabilitiesare exchanged in an orderly transaction in the most advantageous market. Principal market (or the mostadvantageous market) is the market that the Group can normally enter into a transaction on measurement date.The Group adopts the presumptions that would be used by market participants in achieving the maximizedeconomic value of the assets or liabilities.For financial assets or financial liabilities with active markets, the Group uses the quoted prices in active marketsas their fair value. Otherwise, the Group uses valuation technique to determine their fair value.Fair value measurement of a non-financial asset takes into account market participants’ ability to generateeconomic benefits using the asset in its best way or by selling it to another market participant that would best usethe asset.The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data areavailable to measure fair value, maximizing the use of relevant observable inputs, and using unobservable inputsonly if the observable inputs aren’t available or impractical.Fair value level for assets and liabilities measured or disclosed at fair value in the financial statements aredetermined according to the significant lowest level input to the entire measurement: Level 1 inputs are quotedprices (unadjusted) in active markets for identical assets or liabilities that the Group can access at themeasurement date; Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable
for the assets or liabilities, either directly or indirectly; Level 3 inputs are unobservable inputs for the assets orliabilities.At the balance sheet date, the Group revalues assets and liabilities being measured at fair value continuously inthe financial statements to determine whether to change the levels of fair value measurement.
37. Other significant accounting judgments and estimates
The Group conducts an ongoing evaluation of the significant accounting estimates and key assumptions used inthe light of historical experience and other factors, including reasonable expectations of future events. Importantaccounting estimates and key assumptions that are likely to result in the risk of a material adjustment in thecarrying value of assets and liabilities during the next fiscal year are set out below:
Classification of financial assetsThe Group's major judgments in determining the classification of financial assets include the analysis ofbusiness models and contractual cash flow characteristics.The Group determines the business model for the management of financial assets at the level of its financialportfolio, taking into account factors such as the way in which the performance of financial assets is evaluatedand reported to key managers, the risks affecting the performance of financial assets and their managementmethods, and the way in which managers of related businesses are remunerated.When evaluating whether the contractual cash flow of financial assets is consistent with the basic lendingarrangement, the Group has the following main judgments: whether the time distribution or amount of theprincipal in the duration period may change due to reasons such as prepayment; Does interest include only thetime value of money, credit risk, other fundamental borrowing risks, and consideration for costs and profits? Forexample, does the prepayment amount only reflect the outstanding principal and interest based on theoutstanding principal and reasonable compensation for early termination of the contract.Measurement of expected credit losses in accounts receivableThe Group calculates the expected credit loss of accounts receivable through the default risk exposure ofaccounts receivable and the expected credit loss rate, and determines the expected credit loss rate based on thedefault probability and the default loss rate. In determining the expected credit loss rate, the Group uses datasuch as internal historical credit loss experience, and adjusts the historical data in combination with the currentsituation and forward-looking information. When considering forward-looking information, the indicators usedby the Group include the risk of an economic downturn, changes in the external market environment, thetechnological environment and customer conditions. The Group regularly monitors and reviews assumptionsrelating to the calculation of expected credit losses.Deferred tax assetsDeferred tax assets should be recognized for all unutilized tax losses to the extent that there is likely to besufficient taxable profit to offset the loss. This requires management to use a great deal of judgment to estimatewhen and how much future taxable profits will occur, in combination with tax planning strategies, to determinethe amount of deferred tax assets that should be recognized.The provision of land appreciation taxThe Group is subject to land appreciation tax (―LAT‖). The accrual of LAT is subject to management‘sestimation which is made based on its understanding of the requirements of relevant tax laws and regulations.However, the actual LAT is levied by tax authorities according to the interpretation of the tax rules. The group isnot stepping on formulating the final tax plan with relevant tax authorities, hence the final tax outcome could be
different from the amount that was initially recorded, and these differences will have an impact on tax provisionin current period.Determination of fair value of unlisted equity investmentsThe fair value of an unlisted equity investment is the estimated future cash flows discounted at the currentdiscount rate for Items with similar terms and risk characteristics. This valuation requires the Group to estimateexpected future cash flows and the discount rate and is therefore subject to uncertainty. In limited circumstances,if the information used to determine the fair value is insufficient, or if the possible estimates of the fair value arespread over a wide range and the cost represents the best estimate of the fair value within that range, the costmay represent the appropriate estimate of the fair value within that range.
38. Changes in significant accounting policies and accounting estimates
(1) Significant changes in accounting policies
□ Applicable √ Not Applicable
(2) Significant changes in accounting estimates
□ Applicable √ Not Applicable
(3) Adjustments to financial statement items at the beginning of the year of the first implementation ofthe new accounting standards implemented since 2023
□ Applicable √ Not Applicable
39. Other
Maintenance fundWhen the Group collects the maintenance fund from the owners according to a certain proportion of the salesamount of commercial houses, it shall be included in other payables for accounting; When the collectedmaintenance funds are handed over to the land and housing administrative departments in accordance with theregulations, the maintenance funds collected on behalf of them shall be reduced.Quality depositThe Group shall keep the quality deposit in proportion to the payment period stipulated in the contract of civilengineering and installation engineering, and deduct it from the civil engineering and installation Item payment,which shall be classified as other payables. The maintenance expenses incurred due to quality during thewarranty period shall be directly charged under this item and liquidated after the warranty period.VI. Taxation
1. Main types of taxes and corresponding tax rates
Tax type | Tax basis | Tax rate% |
VAT | Taxable income | 9%, 6%, 5%, 3% |
City maintenance and construction tax | Turnover tax payable | 7% |
Corporate income tax | Taxable profits | 25%, 16.5% |
Land appreciation tax | It shall be levied on the basis of the value-added value of the real estate transferred and the prescribed tax rate and paid in advance according to the type of real estate product | Four progressive rates of excess rate: 30%, 40%, 50%, 60% |
Property tax | 70% of the original value of properties/ rental income | 1.2%, 12% |
Education surcharge | Turnover tax payable | 3% |
Local education surcharge | Turnover tax payable | 2% |
The disclosure of taxpayers in different corporate income tax rates:
Name of taxpayer | Income tax rate |
2. Tax preferential treatment
Subsidiaries of the Group, Shenzhen Huazhan Construction Supervision Co., Ltd. and Shantou SpecialEconomic Zone Xiangshan Real Estate Development Co., Ltd. are applicable to the preferential tax rate of 20%for small and low-profit enterprises.
3. Other
Explanation for the VAT rate of different business activities:
With regards to revenue from property development, property management and construction activities, fromMay 1st , 2016, the group‘s taxable items and tax rates are shown in the following table, which in accordancewith the relevant regulations of《Notice on Comprehensively Promoting the Trial of Replacing Business Taxwith Value-Added Tax》(No. 36 of CaiKuai [2016]):
Taxable income | Means to calculate Tax | Tax Rate% |
Revenue from property sales | Simplified Tax Method | 5 |
Revenue from construction | Simplified Tax Method | 9, 3 |
Rental income | Simplified Tax Method | 5 |
Revenue from property management | General Tax Method | 6 |
VII. Notes to the consolidated financial statements
1. Cash at bank and Cash Equivalent
Presented in RMB
Item | As at 30 June 2023 | As at 1 January 2023 |
Cash in hand | 13,721.59 | 4,549.61 |
Deposits with banks | 154,829,181.66 | 163,083,275.13 |
Other monetary funds | 27,447,635.88 | 34,576,125.00 |
Total | 182,290,539.13 | 197,663,949.74 |
Including: Total overseas deposits | 5,938,023.23 | 5,840,173.03 |
Total deposits with restrictions on use due to mortgage, pledge or freeze | 7,509,424.55 | 7,298,880.26 |
Other notes:
At the end of 30 June 2023, there were CNY 7,510,191.40 of restricted funds in the bank deposits, of whichCNY 388,115.74 were the funds frozen by the lawsuit and CNY 5,674,439.78 were the funds for theconstruction of public facilities in and around the city of Longgang district. At the end of 30 June 2023, thebalance of other monetary funds of CNY 27,446,869.03 is seven-day notice deposit, including principal of CNY26,000,000.00 and interest of CNY 1,446,869.03.
2. Trading financial assets
Presented in RMB
Item | As at 30 June 2023 | As at 1 January 2023 |
As at fair value through profit or loss | 274,992,968.77 | 408,154,361.42 |
Including:: | ||
wealth management fund | 274,992,968.77 | 408,154,361.42 |
Including:: | ||
Total | 274,992,968.77 | 408,154,361.42 |
Other notes:
3. Notes receivable
(1) Types of notes
Presented in RMB
Item | As at 30 June 2023 | As at 1 January 2023 |
Commercial acceptance bill | 1,536,150.00 | |
Total | 1,536,150.00 |
Presented in RMB
Types | As at 30 June 2023 | As at 1 January 2023 | ||||||||
Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
Amount | Percentage | Amount | Provision proportion | Amount | Percentage | Amount | Provision proportion | |||
Including: | ||||||||||
Bad debt provisions made on a combination basis | 1,617,000.00 | 100.00% | 80,850.00 | 5.00% | 1,536,150.00 | |||||
Including: | ||||||||||
Total | 1,617,000.00 | 100.00% | 80,850.00 | 5.00% | 1,536,150.00 |
Bad debt provisions made on a combination basis
Presented in RMB
Item | As at 30 June 2023 | ||
Book balance | Bad debt provision | Provision proportion |
Note to the basis for determining the combination:
Please refer to the way of disclosing other receivables’ bad debt provision to disclose relevant information, ifthe group choose to use general model of expected credit losses to accrue bad debts of notes receivable.
□ Applicable √ Not Applicable
(2) Additions, recoveries or reversals of provision for the current period
Additions in current period:
Presented in RMB
Item | As at 1 January 2023 | The amount of change in current period | As at 30 June 2023 | |||
Provision | Recoveries or reversals | Written-off | Others | |||
commercial acceptance bill | 80,850.00 | -80,850.00 | 0.00 | |||
Total | 80,850.00 | -80,850.00 | 0.00 |
Including: significant recoveries or reversals of bad debt provisions in the current period:
□ Applicable √ Not Applicable
(3) Notes receivable pledged by the Group at the end of the period
Presented in RMB
Types | Amount pledged at the end of the period |
(4) At the end of the period, the Group's endorsed or discounted notes receivable which have not yetmatured
Presented in RMB
Types | Derecognized Amount at the end of the period | Amount that is not derecognized at the end of the period |
(5) Notes receivable transferred to accounts receivable by the Group due to the drawer's non-performance at the end of the period
Presented in RMB
Types | Amount transferred to accounts receivable at the end of the period |
commercial acceptance bill | 1,536,150.00 |
Total | 1,536,150.00 |
Other Note:
(6) Actual write-off of notes receivable in the current period
Presented in RMB
Item | Written-off amount |
Including, the significant write-offs of notes receivable are as follows
Presented in RMB
Name of the entity | Nature of accounts | Written-off amount | Reason for written-off | Approval procedures performed | Accounts receivable arising from related party transactions(Y/N) |
Note:
4. Accounts receivable
(1) Types of accounts receivable
Presented in RMB
Types | As at 30 June 2023 | As at 1 January 2023 | ||||||||
Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
Amount | Percentage (%) | Amount | Provision percentage | Amount | Percentage (%) | Amount | Provision percentage | |||
Bad debt provisions made on an individual basis | 37,064,702.69 | 41.43% | 32,348,952.20 | 87.28% | 4,715,750.49 | 36,722,640.73 | 37.62% | 32,006,890.24 | 87.16% | 4,715,750.49 |
Including: | ||||||||||
Bad debt provisions made on a combination basis | 52,390,768.74 | 58.57% | 1,225,855.90 | 2.34% | 51,164,912.84 | 60,886,221.17 | 62.38% | 2,021,549.50 | 3.32% | 58,864,671.67 |
Including | ||||||||||
Receivable from other corpora | 52,390,768.74 | 58.57% | 1,225,855.90 | 2.34% | 51,164,912.84 | 60,886,221.17 | 62.38% | 2,021,549.50 | 3.32% | 58,864,671.67 |
te customers | ||||||||||
Total | 89,455,471.43 | 100.00% | 33,574,808.10 | 37.53% | 55,880,663.33 | 97,608,861.90 | 100.00% | 34,028,439.74 | 34.86% | 63,580,422.16 |
Bad debt provisions made on an individual basis : 33574808.1
Presented in RMB
Item | As at 30 June 2023 | |||
Book balance | Bad debt provision | Provision percentage | Reason | |
Agent for import and export business payment | 11,574,556.00 | 11,574,556.00 | 100.00% | Could be uncollectible |
Long-term receivable of property sale | 10,376,052.81 | 10,376,052.81 | 100.00% | Could be uncollectible |
Shenzhen Hongteng Investment Management Co., Ltd. | 11,789,376.23 | 7,073,625.74 | 60.00% | recoverability is relatively small |
Accounts receivable from the revoked subsidiary | 2,314,755.46 | 2,314,755.46 | 100.00% | Could be uncollectible |
Accounts receivable from other customers | 1,009,962.19 | 1,009,962.19 | 100.00% | Could be uncollectible |
Total | 37,064,702.69 | 32,348,952.20 |
Bad debt provision made on a combination basis: 1,225,855.90
Presented in RMB
Item | As at 30 June 2023 | ||
Book balance | Bad debt provision | Provision percentage | |
Other customers receivables | 52,390,768.74 | 1,225,855.90 | 2.34% |
Total | 52,390,768.74 | 1,225,855.90 |
Note to the basis for determining the combination:
Please refer to the way of disclosing other receivables’ bad debt provision to disclose relevant information, ifthe group choose to use general model of expected credit losses to accrue bad debts of accounts receivable.
□ Applicable √ Not Applicable
Disclosure by Aging
Presented in RMB
Aging | As at 30 June 2023 |
Within 1 year(include 1 year) | 56,269,431.11 |
1 to 2 years | 9,280,506.18 |
3 to 5 years | 23,905,534.14 |
More than 5 years | 23,905,534.14 |
Total | 89,455,471.43 |
(2) Additions, recoveries or reversals of provision for the current period
Provision for the current period:
Presented in RMB
Types | As at 1 January 2023 | Amount changes in current period | As at 30 June 2023 | |||
Provision | Recoveries or reversals | Written-off | Others | |||
Bad debt provision | 34,028,439.74 | -440,326.78 | 13,304.86 | 33,574,808.10 | ||
Total | 34,028,439.74 | -440,326.78 | 13,304.86 | 33,574,808.10 |
Including: significant recoveries or reversals of bad debt provisions in the current period are as follows:
Presented in RMB
Name of the entity | Recoveries or reversals amount | Recovery manner |
(3) Actual write-off of accounts receivable in the current period
Presented in RMB
Item | Written-off amount |
Including, the significant write-offs of accounts receivable are as follows
Presented in RMB
Name of the entity | Nature of accounts receivable | Written-off amount | Reason for written-off | Approval procedures performed | Accounts receivable arising from related party transactions(Y/N) |
Note:
(4) The top five units with the ending balance of accounts receivable collected by the debtor
Presented in RMB
Name of the entity | Accounts receivable The ending balance | % of the total closing balance of accounts receivable | Bad debt provision The ending balance |
Wuhan 2049 Poly Real Estate Development Co., Ltd. | 18,362,798.27 | 20.53% | 393,775.65 |
Wuhan Yutian Xingye Land Co., LTD | 15,387,703.33 | 17.20% | 549,760.09 |
Shenzhen Hongteng Investment Management Co., Ltd. | 11,789,376.23 | 13.18% | 7,073,625.74 |
Wuhan Linhong Land Co., Ltd. | 10,523,608.18 | 11.76% | 241,396.87 |
Jiangsu Huajian Construction Co., Ltd. Shenzhen Branch | 8,693,261.25 | 9.72% | 260,797.84 |
Total | 64,756,747.26 | 72.39% |
(5) Accounts receivable terminated due to the transfer of financial assets
(6) Transfer of accounts receivable and continue to involve the amount of assets and liabilities formedNote:
5. Prepayments
(1) The aging analysis of prepayments is as follows
Presented in RMB
Aging | As at 30 June 2023 | As at 1 January 2023 | ||
Amount | % | Amount | % | |
Within 1 year | 234,279.60 | 30.71% | 626,155.65 | 53.81% |
1 to 2 years | 237,765.60 | 31.17% | 336,699.64 | 28.94% |
2 to 3 years | 206.95 | 0.02% | ||
More than 3 years | 290,782.99 | 6.83% | 200,550.00 | 17.24% |
Total | 762,828.19 | 1,163,612.24 |
Reason for significant prepayments aging more than 1 year and not be settled:
(2) The top five units of the ending balance of prepayments
The sum of the top five prepayments collected by prepaid objects at the end of the period is 742,942.32 yuan,which accounts for 97.39 % of the total ending balance of prepayments.Other notes:
6. Other receivables
Presented in RMB
Item | As at 30 June 2023 | As at 1 January 2023 |
Other receivables | 21,922,385.34 | 42,105,050.33 |
Total | 21,922,385.34 | 42,105,050.33 |
(1)Interest receivable
1)Interest receivable classification
Presented in RMB
Item | As at 30 June 2023 | As at 1 January 2023 |
2)Significant overdue interest
Presented in RMB
Borrowing unit | The ending balance | Overdue time (month) | Overdue reason | Whether impairment occurs and the basis for judgment |
Other notes:
3)Bad Debt Provisions
□ Applicable √ Not Applicable
(2)Dividends receivable
1)Dividends receivable classification
Presented in RMB
Items (or invested units) | As at 30 June 2023 | As at 1 January 2023 |
2)Significant dividends receivable overdue more than one year are as follows:
Presented in RMB
Items (or invested units) | As at 30 June 2023 | Aging | Reasons for not retrieving | Whether impairment occurs and the basis for judgment |
3)Bad Debt Provisions
□ Applicable √ Not Applicable
Other notes:
(3)Other receivables
1)Other receivables disclosure by nature
Presented in RMB
Item | Book balance as at 30 June 2023 | Book balance as at 1 January 2023 |
Other receivables from employee’s petty cash | 266,831.37 | 147,810.19 |
Other receivables from the collecting and paying on behalf | 768,208.38 | 689,317.63 |
Other receivables from other customers | 59,715,244.73 | 80,028,366.45 |
Other receivables from related parties | 154,600,573.04 | 156,470,188.49 |
Total | 215,350,857.52 | 237,335,682.76 |
2)Bad Debt Provision
Presented in RMB
Bad Debt Provision | first stage | Second stage | Third stage | Total |
To 12-month expected credit loss | To 12-month expected credit loss (no credit impairment) | To lifetime expected credit loss (has occurred credit impairment) | ||
Balance as at 1 | 1,524,758.92 | 193,705,873.51 | 195,230,632.43 |
January 2023 | ||||
Balance as at 1 January 2023 in current period | ||||
Return the current | -8,000.00 | -8,000.00 | ||
Other changes | 808,813.28 | 1,001,346.97 | 1,810,160.25 | |
Balance as at 30 June 2023 | 723,945.64 | 192,704,526.54 | 193,428,472.18 |
Changes in the book balance with significant changes in the loss provision for the current period:
□ Applicable √ Not Applicable
Disclosure by aging
Presented in RMB
Aging | As at 30 June 2023 |
Within 1 year (include 1 year) | 41,623,990.70 |
1 to 2 years | 6,583,028.71 |
2 to 3 years | 13,300.00 |
3 to 4 years | 167,130,538.11 |
More than 5 years | 167,130,538.11 |
Total | 215,350,857.52 |
3)Additions, recoveries or reversals of provision for the current periodBad debt provisions in the current period
Presented in RMB
Types | As at 1 January 2023 | Amount changes in current period | As at 30 June 2023 | |||
Additions | Recoveries or reversals | Written-off | Others | |||
Other receivables bad debt provision | 195,230,632.43 | -8,000.00 | 1,810,160.25 | 193,428,472.18 | ||
Total | 195,230,632.43 | -8,000.00 | 1,810,160.25 | 193,428,472.18 |
Including: significant recoveries or reversals of bad debt provisions in the current period are as follows:
Presented in RMB
Name of the entity | Amount of recoveries or reversals | Recovery manner |
4)Other receivables actually written off in the current period
Presented in RMB
Item | Amount of written-off |
Including, the important accounts receivable write-off situation is as follows
Presented in RMB
Name of the entity | Nature of other receivable | Amount of written-off | Reason | Verification and cancellation | Whether the payment is |
procedures to be performed | generated by an affiliate transaction |
Note:
5)The top five units of ending balance of other receivables
Presented in RMB
Name of the entity | Nature of other receivables | Ending balance of other receivables | Aging | Proportion of total ending balance of other receivables (%) | Ending balance of bad debt provision |
Canada Great Wall (Vancouver) Co., Ltd | current account | 89,035,748.07 | More than 5 years | 41.34% | 89,035,748.07 |
Paklid Limited | current account | 19,506,273.32 | More than 5 years | 9.06% | 19,506,273.32 |
Australia Bekaton property Limited | current account | 12,559,290.58 | More than 5 years | 5.83% | 12,559,290.58 |
Guangdong province Huizhou Luofu Hill Mineral Water Co.,Ltd | current account | 10,465,168.81 | More than 5 years | 4.86% | 10,465,168.81 |
Xi’an Fresh Peak Property Trading Co., Ltd | current account | 8,419,205.19 | More than 5 years | 3.91% | 8,419,205.19 |
Total | 139,985,685.97 | 65.00% | 139,985,685.97 |
6)Government subsidies receivable
Presented in RMB
Name of the organization | Name of government subsidy item | The ending balance | Aging | Estimated time, amount and basis of collection |
7)Other receivables terminated due to the transfer of financial assets8)Amount of assets and liabilities formed by transferring other receivables and continuing to involvethemOther notes:
7. Inventories
Does the Company need to comply with the disclosure requirements of real estate industry?Yes
(1)Inventory classification
The company complies with the disclosure requirements of "Shenzhen Stock Exchange Industry InformationDisclosure Guidelines No. 3-Listed Companies Engaged in Real Estate Business".Classified by nature:
Presented in RMB
Item | As at 30 June 2023 | As at 1 January 2023 | ||||
Book balance | Provision for impairment of inventories/provision for impairment of contract performance cost | The book value | Book balance | Provision for impairment of inventories/provision for impairment of contract performance cost | The book value | |
Real estate developing cost | 3,449,617,810.46 | 3,449,617,810.46 | 3,413,963,261.85 | 3,413,963,261.85 | ||
Real estate developed products | 790,009,176.74 | 790,009,176.74 | 842,847,684.33 | 842,847,684.33 | ||
Raw materials | 0.00 | 8,458.34 | 8,458.34 | |||
Finished goods | 316,588.92 | 38,891.91 | 277,697.01 | 329,101.70 | 38,891.91 | 290,209.79 |
Total | 4,239,943,576.12 | 38,891.91 | 4,239,904,684.21 | 4,257,148,506.22 | 38,891.91 | 4,257,109,614.31 |
The main items of " Real estate developing cost " and their interest capitalization are shown below:
Presented in RMB
Item | Starting time | Time for completion | Estimated total investment | As at 1 January 2022 | Less: Transfer to “Real estate developed products | Less: Other reduction | Add: Increase in this period | As at 30 June 2022 | Cumulative interest capitalization | Include: Amount of interest capitalized in the current period | Sources of funds |
ShanTou Fresh Peak Building | 28,291,908.11 | 28,291,908.11 | Other | ||||||||
Lin Xin Garden | 30 June 2025 | 2,290,805,229.96 | 6,218,275.18 | 2,297,023,505.14 | 33,278,019.99 | Other | |||||
Guang | 8 | 7 | 1,094, | 29,436 | 1,124, | 2,265, | 1,609, | Bank |
mingli | February 2022 | December 2024 | 866,123.78 | ,273.43 | 302,397.21 | 037.89 | 531.95 | loans, others | |||
Total | 3,413,963,261.85 | 35,654,548.61 | 3,449,617,810.46 | 35,543,057.88 | 1,609,531.95 |
The main items of "Real estate developed products" and their interest capitalization are shown below:
Presented in RMB
Item | Time for completion | As at 1 January 2023 | Increase | Decrease | As at 30 June 2023 | Cumulative interest capitalization | Include: Amount of interest capitalized in the current period |
Jinye Island Multi-tier villa | 16 Sep. 1997 | 39,546,392.27 | 4,200.00 | 39,477,078.34 | |||
Jinye Island villa No.10 | 2 Dec 2010 | 5,696,007.25 | 0.00 | 5,696,007.25 | |||
Jinye Island villa No.11 | 20 Aug. 2008 | 2,333,281.42 | 0.00 | 2,333,281.42 | |||
YueJing dongfang Project | 18 Nov. 2014 | 6,476,404.76 | 118,459.23 | 6,357,945.53 | |||
HuangPu XinCun | 140,000.00 | 140,000.00 | |||||
Beijing Fresh Peak Building | 304,557.05 | 304,557.05 | |||||
TianYue Bay No.1 | 15 Dec. 2017 | 225,653,522.83 | 6,281,424.21 | 219,372,098.62 | |||
Shenfang CuiLin Building | 8 May 2018 | 45,617,437.79 | 19,908,371.01 | 25,709,066.78 | |||
Chuanqi Donghu | 8 Dec 2019 | 4,289,919.17 | 4,289,919.17 | 0.00 | |||
TianYue Bay No.2 | 30 June 2021 | 512,790,161.79 | 22,171,020.04 | 490,619,141.75 | |||
Total | 842,847,684.33 | 4,200.00 | 52,769,193.66 | 790,009,176.74 |
The main items of "instalment on development products”, "leased development products”, “Revolving room”are shown below:
Presented in RMB
Item | As at 1 January 2023 | Increase | Decrease | As at 30 June 2023 |
2)Provision for inventories and impairment of contract performance costsThe main items of provision for inventories are shown below:
Classified by nature:
Presented in RMB
Item | Opening balance | Increase in the reporting period | Decrease in the reporting period | Ending balance | Note | ||
Provision | Others | Reversal or Offset | Others | ||||
Finished products | 38,891.91 | 38,891.91 | |||||
Total | 38,891.91 | 38,891.91 |
Classified by items:
Presented in RMB
Item | Opening balance | Increase in the reporting period | Decrease in the reporting period | Ending balance | Note | ||
Provision | Others | Reversal or Offset | Others |
(3)The ending balance of inventory contains the explanation of the capitalized amount of borrowingexpenses:
As at 30 June 2023, the Group's inventory balance contains capitalized borrowing costs at 35,543,057.88 yuan.
(4)Restriction on Inventories
Disclose restriction on Inventories by projects:
Presented in RMB
Name of project | Opening balance | Ending balance | Reason of restriction |
Inventories | 965,000,000.00 | 965,000,000.00 | Land mortgaged for project development loans |
Total | 965,000,000.00 | 965,000,000.00 |
8. Other current assets
Presented in RMB
Item | As at 30 June 2023 | As at 1 January 2023 |
Contract acquisition costs | 1,397,895.00 | 1,212,848.49 |
Advance or prepaid income tax | 789,501.68 | 1,692,386.28 |
Prepaid VAT | 1,876,020.62 | 1,620,352.66 |
Pending deduct vat on purchase | 30,787,643.44 | 29,247,467.16 |
Land Appreciation Tax | 2,594,592.04 | 1,813,337.72 |
Business Tax | 150,024.32 | 250,719.98 |
Others | 998,562.58 | 941,529.13 |
Total | 38,594,239.68 | 36,778,641.42 |
Other notes:
9. Long-term equity investments
Presented in RMB
Invest | Openi | Movements during the period | Endin | Balanc |
ees | ng balance (book value) | Increase | Decrease | Investment income recognised under equity met ho | Adjustment in OCI | Other equity movements | Declared distribution of cash dividends or profits | Provision f or impairment | Other | g balance (book value) | e of provision for impairment as June 30 2023 |
1. Joint Venture | |||||||||||
Guangdong province Huizhou Luofu Hill Mineral Water Co., Ltd | 9,969,206.09 | 9,969,206.09 | 9,969,206.09 | ||||||||
Fengkai Xinhua Hotel | 9,455,465.38 | 9,455,465.38 | 9,455,465.38 | ||||||||
Subtotal | 19,424,671.47 | 19,424,671.47 | 19,424,671.47 | ||||||||
2. Associates | |||||||||||
Shenzhen Ronghua JiDian Co., ltd | 1,170,882.28 | 1,170,882.28 | 1,076,954.64 | ||||||||
Shenzhen Runhua Automobile trading Co., Ltd | 1,445,425.56 | 1,445,425.56 | 1,445,425.56 | ||||||||
Dongyi Real Estate Co., Ltd | 30,376,084.89 | 30,376,084.89 | 30,376,084.89 | ||||||||
Subtotal | 32,992,392.73 | 32,992,392.73 | 32,898,465.09 | ||||||||
Total | 52,417 | 52,417 | 52,323 |
,064.20 | ,064.20 | ,136.56 |
Other notes
10. Investments in other equity instrument
Presented in RMB
Item | As at 30 June 2023 | As at 1 January 2023 |
Shantou Small &Medium Enterprises Financing Guarantee Co., Ltd | 14,191,290.63 | 13,839,235.57 |
Total | 14,191,290.63 | 13,839,235.57 |
Itemized disclosure of investment in non-trading equity instruments for the current period
Presented in RMB
Item | Dividend income recognized for the current period | The cumulative gains | The cumulative loss | The amount of other comprehensive reserve transferred into retained earnings | Reasons for designating fair value measurement and its changes included in other comprehensive income | Transferring reasons |
Shantou Small &Medium Enterprises Financing Guarantee Co., Ltd | 5,550,600.00 |
Other notes:
11. Investment property
(1) Investment properties measured using the cost model
Presented in RMB
Item | Buildings | Land use rights | Construction in progress | Total |
Ⅰ. Cost | ||||
1. Balance as at 31 Dec. 2022 | 1,044,744,895.39 | 107,350,053.05 | 1,152,094,948.44 | |
2. Additions during the year | 3,779,432.13 | 3,779,432.13 | ||
(1)Purchase | ||||
(2)Transfer from Inventories\Fixed assets\ construction in progress |
(3)Additions due to business combinations | ||||
(4)Others (Exchange Rate Changes) | 3,779,432.13 | 3,779,432.13 | ||
3. Decrease during the year | ||||
(1)Disposals | ||||
(2)Other transfers out | ||||
4.Balance as at 30 June 2023 | 1,044,744,895.39 | 111,129,485.18 | 1,155,874,380.57 | |
II. Accumulated depreciation or amortization | ||||
1. Balance as at 31 Dec. 2022 | 482,985,291.20 | 482,985,291.20 | ||
2. Charge for the year | 12,856,812.57 | 12,856,812.57 | ||
(1)Depreciated or amortised | 12,856,812.57 | 12,856,812.57 | ||
3. Reductions during the year | ||||
(1)Disposals | ||||
(2)Other transfers out | ||||
4.As at 30 June 2023 | 495,842,103.77 | 495,842,103.77 | ||
III. Provision for impairment | ||||
1. Balance as at 31 Dec. 2022 | 14,128,544.62 | 88,107,197.55 | 102,235,742.17 | |
2. Charge for the year | 3,101,956.30 | 3,101,956.30 | ||
(1) Provision | ||||
(2) Others (Exchange Rate Changes) | 3,101,956.30 | 3,101,956.30 | ||
3. Reductions on disposals | ||||
(1)Disposals | ||||
(2)Other transfers out | ||||
4.As at 30 June 2023 | 14,128,544.62 | 91,209,153.85 | 105,337,698.47 | |
IV. Carrying amounts |
1. As at 30 June 2023 | 534,774,247.00 | 19,920,331.33 | 554,694,578.33 | |
2. As at 31 Dec 2022 | 547,631,059.57 | 19,242,855.50 | 566,873,915.07 |
2)Investment property measured at fair value
□ Applicable √ Inapplicable
The company complies with the disclosure requirements of "Shenzhen Stock Exchange Industry InformationDisclosure Guidelines No. 3-Listed Companies Engaged in Real Estate Business"
Disclosed by projects:
Presented in RMB
Project name | Location | Time for completion | building area | Rental income in reporting period | Fair value as at 31 Dec. 2022 | Fair value as at 30 June 2023 | Movement in Fair value | Reasons and Index for fair value change |
Does the company have investment real estate that is currently under construction?
□ Yes √ No
Whether the company has new investment real estate measured at fair value in the current period?
□ Yes √ No
(3)Investment properties pending certificates of ownership
Presented in RMB
Item | Carrying amount | Reason why certificates are pending |
Other notes
12. Fixed assets
Presented in RMB
Item | As at 30 June 2023 | As at 31 Dec. 2022 |
Fixed assets | 20,677,375.65 | 21,425,475.05 |
Total | 20,677,375.65 | 21,425,475.05 |
(1)Fixed assets
Presented in RMB
Item | Plant & buildings | Motor vehicles | Electronic equipment and others | Total |
I.Cost: | ||||
1. Balance as at 31 Dec. 2022 | 100,422,074.10 | 8,307,455.41 | 7,403,998.70 | 116,133,528.21 |
2.Additions during | 0.00 | 377,300.00 | 232,308.74 | 609,608.74 |
the year | ||||
(1) Purchases | 0.00 | 377,300.00 | 232,308.74 | 609,608.74 |
(2) Transfers from construction in progress | ||||
(3) Additions due to business combinations | ||||
3. Decrease during the year | 895,187.50 | 10,382.05 | 905,569.55 | |
(1) Disposals or written-offs | 895,187.50 | 10,382.05 | 905,569.55 | |
4.As at 30 June 2023 | 100,422,074.10 | 7,789,567.91 | 7,625,925.39 | 115,837,567.40 |
II. Accumulated depreciation | ||||
1. Balance as at 31 Dec. 2022 | 81,649,438.77 | 7,111,284.47 | 5,947,329.92 | 94,708,053.16 |
2. Charge for the year | 1,083,182.69 | 118,565.87 | 155,440.48 | 1,357,189.04 |
(1) Provision | 1,083,182.69 | 118,565.87 | 155,440.48 | 1,357,189.04 |
3. Reductions for the year | 895,187.50 | 9,862.95 | 905,050.45 | |
(1) Disposal or written-offs | 895,187.50 | 9,862.95 | 905,050.45 | |
1. Balance as at 30 June 2023 | 82,732,621.46 | 6,334,662.84 | 6,092,907.45 | 95,160,191.75 |
III. Provision for impairment | ||||
1. Balance as at 31 Dec. 2022 | ||||
2. Charge for the year | ||||
(1) Provision | ||||
3. Reductions for the year | ||||
(1) Disposals or written-offs | ||||
4. Balance As at 30 June 2023 | ||||
IV. Carrying amount | ||||
1. As at 30 June 2023 | 17,689,452.64 | 1,454,905.07 | 1,533,017.94 | 20,677,375.65 |
2. As at 31 Dec. 2022 | 18,772,635.33 | 1,196,170.94 | 1,456,668.78 | 21,425,475.05 |
(2)Temporarily idle fixed assets
Presented in RMB
Item | Cost | Accumulated depreciation | Provision for impairment | Carrying Amount | Note |
(3)Fixed assets leased out under operating leases
Presented in RMB
Item | Carrying amount at the end of reporting period |
(4)Fixed assets pending certificates of ownership
Presented in RMB
Item | Carrying amount | Reason why certificates of ownership are pending |
Other notes
(5)Fixed assets to be disposed of
Presented in RMB
Item | As at 30 June 2023 | As at 31 Dec. 2022 |
Other notes:
13. Use rights assets
Presented in RMB
Item | Plant & buildings | Total |
Ⅰ. Cost | ||
1. Balance as at 31 Dec. 2022 | 431,779.61 | 431,779.61 |
2. Additions during the year | ||
3. Decrease during the year | ||
4.Balance as at 30 June 2023 | 431,779.61 | 431,779.61 |
II. Accumulated depreciation or amortization | ||
1. Balance as at 31 Dec. 2022 | 199,282.89 | 199,282.89 |
2. Charge for the year | 66,427.64 | 66,427.64 |
(1)Depreciated or amortised | 66,427.64 | 66,427.64 |
3. Reductions during the year | ||
(1)Disposals | ||
4.As at 30 June 2023 | 265,710.53 | 265,710.53 |
III. Provision for impairment | ||
1. Balance as at 31 Dec. 2022 | ||
2. Charge for the year | ||
(1) Provision | ||
3. Reductions for the year | ||
(1)Disposals | ||
4.As at 30 June 2023 |
IV. Carrying amounts | ||
1. As at 30 June 2023 | 166,069.08 | 166,069.08 |
2. As at 31 Dec 2022 | 232,496.72 | 232,496.72 |
Other notes:
14. Intangible assets
(1)Intangible assets
Presented in RMB
Item | Land use rights | Patent right | Know-how | Software | Total |
I.Cost | |||||
1. Balance as at 31 Dec. 2022 | 2,192,000.00 | 2,192,000.00 | |||
2.Additions during the year | |||||
(1) Purchase | |||||
(2) Internal development | |||||
(3) Additions due to business combination | |||||
3. Decrease during the year | |||||
(1) Disposals | |||||
4.As at 30 June 2023 | 2,192,000.00 | 2,192,000.00 | |||
II. Accumulative amortisation | |||||
1. Balance as at 31 Dec. 2022 | 2,192,000.00 | 2,192,000.00 | |||
2. Charge for the year | |||||
(1) Provision | |||||
3. Reductions for the year | |||||
(1) Disposals | |||||
4.As at 30 June 2023 | 2,192,000.00 | 2,192,000.00 | |||
III. Provision for impairment | |||||
1. Balance as at 31 Dec. 2022 | |||||
2. Charge for the year | |||||
(1) Provision | |||||
3. Reductions for the year | |||||
(1) Disposals | |||||
4.As at 30 June 2023 | |||||
IV. Carrying amount | |||||
1. As at 30 June 2023 | |||||
2. As at 31 Dec. 2022 |
The carrying amount of intangible assets of the Group arising from internal development is 0.00% of the totalcarrying amount of intangible assets at the end of the year.
(2)Land use rights pending certificates of ownership
Presented in RMB
Item | Carrying amount | Reason why certificates of ownership are pending |
Other notes
15. Long-term deferred expense
Presented in RMB
Item | As at 1 Jan. 2023 | Additions during the year | Amortisation for the year | Others decreases | As at 30 June 2023 |
Renovation Costs | 1,719,057.99 | 20,803.21 | 283,035.94 | 1,456,825.26 | |
Others | 457,163.54 | 83,999.46 | 373,164.08 | ||
Total | 2,176,221.53 | 20,803.21 | 367,035.40 | 1,829,989.34 |
Other notes
16. Deferred tax assets/Deferred tax liabilities
(1)Deferred tax assets and deferred tax liabilities that are not offset
Presented in RMB
Item | As at 30 June 2023 | As at 31 Dec. 2022 | ||
Deductible or taxable temporary | Deferred tax assets | Deductible or taxable temporary | Deferred tax assets | |
Provisions for impairment of assets | 12,026,682.71 | 3,006,670.68 | 12,026,682.71 | 3,006,670.68 |
Unrealised profits of intra-group transactions | 83,966,762.00 | 20,991,690.50 | 86,124,778.41 | 21,531,194.60 |
Deductible tax losses | 69,016,233.12 | 17,254,058.28 | 69,038,992.71 | 17,259,748.18 |
Provision for land appreciation tax liquidation reserves | 117,245,335.26 | 29,311,333.82 | ||
Accrued Contractual cost | 23,711,126.84 | 5,927,781.70 | 23,711,126.84 | 5,927,781.70 |
Total | 188,720,804.67 | 47,180,201.16 | 308,146,915.93 | 77,036,728.98 |
(2)Deferred tax liabilities without offsetting
Presented in RMB
Item | As at 30 June 2023 | As at 31 Dec. 2022 | ||
Deductible or taxable temporary differences | Deferred tax liabilities | Deductible or taxable temporary differences | Deferred tax liabilities | |
Changes in the fair value of other equity instrument investments | 1,839,235.57 | 459,808.89 | 1,839,235.57 | 459,808.89 |
Interest not due | 1,576,125.00 | 394,031.25 | 1,576,125.00 | 394,031.25 |
Changes in fair value of held-for-trading financial assets | 8,970,031.50 | 2,242,507.88 | 8,970,031.50 | 2,242,507.88 |
Total | 12,385,392.07 | 3,096,348.02 | 12,385,392.07 | 3,096,348.02 |
(3)Deferred tax assets or deferred tax liabilities disclosed as net amount after offsetting
Presented in RMB
Item | Amount of offsetting as at 30 June 2023 | Deferred tax assets or liabilities after offsetting as at 30 June 2023 | Amount of offsetting as at 31 Dec. 2022 | Deferred tax assets or liabilities after offsetting as at 31 Dec. 2022 |
Deferred tax assets | 47,180,201.16 | 77,036,728.98 | ||
Deferred tax liabilities | 3,096,348.02 | 3,096,348.02 |
(4)Details of unrecognized deferred tax assets
Presented in RMB
Item | As at 30 June 2023 | As at 31 Dec. 2022 |
Deductible tax losses | 49,941,635.58 | 54,027,120.82 |
Bad debt provision | 197,543,730.87 | 197,543,730.87 |
Provision for impairment of long-term equity | 220,084,700.95 | 220,084,700.95 |
Provision for impairment of investment real estate | 102,235,742.17 | 102,235,742.17 |
Total | 569,805,809.57 | 573,891,294.81 |
(5)Expiration of deductible tax losses for unrecognised deferred tax assets
Presented in RMB
Year | As at 30 June 2023 | As at 31 Dec. 2022 | Note |
2023 | 4,085,485.24 | ||
2024 | 688,456.49 | 688,456.49 | |
2025 | 1,629.25 | 1,629.25 | |
2026 | 346,891.06 | 346,891.06 | |
2027 | 48,904,658.78 | 48,904,658.78 | |
Total | 49,941,635.58 | 54,027,120.82 |
Other note
17. Short-term loans
(1)Classification of short-term loans
Presented in RMB
Item | As at 30 June 2023 | As at 31 Dec. 2022 |
Pledge loans | 45,050,727.80 | 51,138,077.62 |
Total | 45,050,727.80 | 51,138,077.62 |
Note:
The ending balance of the loan consist of the factoring with accounts receivables.
(2)Past due short-term loans
The total balance of past due short-term loans at the end of the year is RMB 0, including significant items are asfollows:
Presented in RMB
Lender | As at 30 June 2023 | Interest rate | Past due period | Interest rate if overdue |
Other notes
18. Notes payable
Presented in RMB
Kind of Class | Ending balance | Opening balance |
The total amount of notes payable due and unpaid at the end of the current period is RMB 220,898,556.87.
19. Accounts payable
(1)Accounts payable
Presented in RMB
Item | As at 30 June 2023 | As at 31 Dec. 2022 |
Construction | 397,127,529.59 | 432,902,243.31 |
Others | 1,729,506.45 | 1,699,316.36 |
Total | 398,857,036.04 | 434,601,559.67 |
(2)the age of more than 1 year of important accounts payable
Presented in RMB
Item | As at 30 June 2023 | Reasons for non-payment or non-carry-forward |
Other notes:
20. Advances from customers
(1)Advance payments
Presented in RMB
Item | As at 30 June 2023 | As at 31 Dec. 2022 |
Payment for goods-import and export | 4,218,370.69 | 4,218,370.69 |
Others | 653,101.19 | 1,246,973.27 |
Total | 4,871,471.88 | 5,465,343.96 |
(2)Important advances received over one year
Presented in RMB
Item | As at 30 June 2023 | Reasons for non-payment or non-carry-forward |
Other notes:
21. Contractual liabilities
Presented in RMB
Item | As at 30 June 2023 | As at 31 Dec. 2022 |
Advance in house payment | 34,155,928.57 | 43,431,327.09 |
Advance in room fee | 100,408.38 | 102,140.20 |
Total | 34,256,336.95 | 43,533,467.29 |
Changes in amount and reason for the change in reporting period:
Presented in RMB
Item | Changes in the amount | Reason for change |
Advance in house payment | -9,275,398.52 | Real estate sales meet the income recognition conditions and carry forward income |
Total | -9,275,398.52 |
The company needs to comply with the disclosure requirements of "real estate industry" in the "Shenzhen StockExchange Listed Company Self-Regulatory Supervision Guidelines No. 3 - Industry Information Disclosure"Receipt information of the top five projects in the pre-sale amount:
Presented in RMB
Serial number | Item | As at 31 Dec. 2022 | As at 30 June 2023 | Estimated completion time | Pre-sale ratio |
22. Payroll payable
(1)Employee benefits payable
Presented in RMB
Item | As at 31 Dec 2022 | Accrued during the year | Decreased during the year | As at 30 June 2023 |
Short-term employee benefits | 35,672,352.37 | 25,379,314.03 | 34,995,612.73 | 26,056,053.67 |
Post-employment benefits - defined contribution plans | 51,851.41 | 4,882,198.99 | 4,882,199.11 | 51,851.29 |
Total | 35,724,203.78 | 30,261,513.02 | 39,877,811.84 | 26,107,904.96 |
(2)Short-term employee benefits
Presented in RMB
Item | As at 31 Dec 2022 | Accrued during the year | Decreased during the year | As at 30 June 2023 |
1.Salaries, bonus, allowances | 35,211,378.77 | 18,382,586.31 | 27,665,932.85 | 25,928,032.23 |
2.Staff welfare | 220,742.00 | 1,678,076.40 | 1,898,818.40 | 0.00 |
3.Social insurances | 2,061,716.10 | 2,061,716.10 | 0.00 |
Including: Medical insurance | 1,928,118.49 | 1,928,118.49 | 0.00 | |
Work-related injury insurance | 30,931.54 | 30,931.54 | 0.00 | |
Maternity insurance | 102,666.07 | 102,666.07 | 0.00 | |
4. Housing Fund | 2,685,845.63 | 2,685,845.63 | 0.00 | |
5. Labor union fees, staff and workers’ education fee | 240,231.60 | 571,089.59 | 683,299.75 | 128,021.44 |
Total | 35,672,352.37 | 25,379,314.03 | 34,995,612.73 | 26,056,053.67 |
(3)Post-employment benefits - defined contribution plans
Presented in RMB
Item | As at 31 Dec 2022 | Accrued during the year | Decreased during the year | As at 30 June 2023 |
Basic pension insurance | 2,910,855.30 | 2,910,855.30 | 0.00 | |
Unemployment insurance | 32,286.62 | 32,286.62 | 0.00 | |
Annuity | 51,851.41 | 1,939,057.07 | 1,939,057.19 | 51,851.29 |
Total | 51,851.41 | 4,882,198.99 | 4,882,199.11 | 51,851.29 |
Other notes
23. Tax payable
Presented in RMB
Item | As at 30 June 2023 | As at 31 Dec 2022 |
Value-added tax | 2,816,273.69 | 3,843,704.80 |
Corporate income tax | 18,971,573.83 | 61,927,050.99 |
Individual income tax | 603,654.85 | 1,611,643.13 |
City maintenance and construction tax | 852,519.05 | 734,949.61 |
Land appreciation tax | 8,253,213.62 | 121,891,472.74 |
Property tax | 4,982,103.54 | 287,141.98 |
Education surcharge | 361,834.61 | 316,008.58 |
local education surcharge | 241,223.07 | 197,568.44 |
Others | 488,239.67 | 141,645.72 |
Total | 37,570,635.93 | 190,951,185.99 |
Other notes
24. Other payables
Presented in RMB
Item | As at 30 June 2023 | As at 31 Dec 2022 |
Interest payables | 16,535,277.94 | 16,535,277.94 |
Other payables | 538,530,321.81 | 557,796,062.90 |
Total | 555,065,599.75 | 574,331,340.84 |
(1)Interest payable
Presented in RMB
Item | As at 30 June 2023 | As at 31 Dec 2022 |
Non-financial institution borrowing interest (interest payable to parent company) | 16,535,277.94 | 16,535,277.94 |
Total | 16,535,277.94 | 16,535,277.94 |
Significant overdue interest outstanding:
Presented in RMB
Debtor | Overdue amount | Overdue reason |
Shenzhen Investment Holdings Co., Ltd. | 16,535,277.94 | Defer payment |
Total | 16,535,277.94 |
Other notes:
The loan principal was paid in full on 22 Dec. 2016.
(2)Dividends payable
Presented in RMB
Item | As at 30 June 2023 | As at 31 Dec 2022 |
Reason for significant dividends not paid in 1 year:
(3)Other payables
1)Other payables (by nature)
Presented in RMB
Item | As at 30 June 2023 | As at 31 Dec 2022 |
Current account to Non-Related parties | 160,011,335.42 | 166,065,259.07 |
Current account to Related parties | 230,698,698.75 | 232,502,015.42 |
Deposits | 24,822,234.12 | 28,723,844.16 |
Others | 122,998,053.52 | 130,504,944.25 |
Total | 538,530,321.81 | 557,796,062.90 |
2)significant other payables aging over 1 year
Presented in RMB
Item | As at 30 June 2023 | Reason for no repayment |
Guangzhou Bopi Enterprise Management Consulting Co., LTD | 203,265,265.50 | Within 1 year, 1-2 years, 2-3 years |
Huizhou Guirong Investment Information Consulting Co., LTD | 100,033,126.03 | 1-2 years |
Total | 303,298,391.53 |
Other notes
25. Non-current liabilities due within one year
Presented in RMB
Item | As at 30 June 2023 | As at 31 Dec 2022 |
Long-term borrowings due within one year | 19,983,173.22 | 6,105,770.99 |
Lease liabilities due within one year | 83,023.44 | 83,023.44 |
Total | 20,066,196.66 | 6,188,794.43 |
Other notes:
26. Other current liabilities
Presented in RMB
Item | As at 30 June 2023 | As at 31 Dec 2022 |
Output tax to be transferred | 2,844,613.84 | 2,265,817.68 |
Notes receivable that have been endorsed but cannot be terminated for recognition | 1,617,000.00 | |
Total | 2,844,613.84 | 3,882,817.68 |
Movement in Short-term bonds payable:
Presented in RMB
Name of the bond | Face value | Release date | The bond deadline | issuance | As at 31 Dec 2022 | The current issue | Interest is accrued at face value | Amortization of excess discount | The current pay | As at 30 June 2023 | |
Total |
Other notes:
27. Long-term loans
(1)Long-term loans classification
Presented in RMB
Item | As at 30 June 2023 | As at 31 Dec 2022 |
Pledge loan | 161,876,610.82 | 60,366,770.99 |
Less: long-term loans due within one year | -19,983,173.22 | -6,105,770.99 |
Total | 141,893,437.60 | 54,261,000.00 |
Note:
Additional notes, including interest rate ranges:
The interest rate range is 3.70%-4.20%.
28. Lease liabilities
Presented in RMB
Item | As at 30 June 2023 | As at 31 Dec 2022 |
Buildings | 95,400.80 | 136,908.67 |
Less: lease liabilities due within | -83,023.44 | -83,023.44 |
one year | ||
Total | 12,377.36 | 53,885.23 |
Other notes:
29. Share capital
Presented in RMB
As at 31 Dec 2022 | Increase or decrease of current period (+, -) | As at 30 June 2023 | |||||
New shares | Stock dividend | Conversion from reserve to shares | Others | Subtotal | |||
The total number of shares | 1,011,660,000.00 | 1,011,660,000.00 |
Other notes:
30. Capital reserves
Presented in RMB
Item | As at 31 Dec 2022 | Increase in current period | The reduced in current period | As at 30 June 2023 |
Share premium | 557,433,036.93 | 557,433,036.93 | ||
Other capital reserves | 420,811,873.18 | 420,811,873.18 | ||
Total | 978,244,910.11 | 978,244,910.11 |
Reason for movements in capital reserves:
31. Other comprehensive income
Presented in RMB
Item | As at 31 Dec 2022 | Current amount | As at 30 June 2023 | |||||
The current income tax before the amount | Less: included in other comprehensive income in the previous period and transferred to profit or loss in the current period | Less: included in other comprehensive income in the previous period and transferred to retained earnings in the current period | Less: Income tax expense | Attributable to the parent company after tax | Attributa ble to minority shareholders after tax | |||
I. Other comprehensive income | 1,379,426.68 | 352,055.06 | 352,055.06 | 1,731,481.74 |
that cannot be reclassified into profits and losses | ||||||||
Changes in the fair value of other equity instrument investments | 1,379,426.68 | 352,055.06 | 352,055.06 | 1,731,481.74 | ||||
II.Other comprehensive income which is reclassified into profit and loss | 24,547,294.17 | -3,035,396.05 | -2,124,777.23 | -910,618.82 | 22,422,516.94 | |||
Translation differences arising from translation of foreign currency financial statements | 24,547,294.17 | -3,035,396.05 | -2,124,777.23 | -910,618.82 | 22,422,516.94 | |||
Total | 25,926,720.85 | -2,683,340.99 | -1,772,722.17 | -910,618.82 | 24,153,998.68 |
Other notes, including the adjustment of the effective portion of the cash flow hedging gain or loss to theinitially recognised amount of the hedged item:
32. Surplus reserve
Presented in RMB
Item | As at 31 Dec 2022 | Additions during the year | Reductions during the year | As at 30 June 2023 |
Statutory surplus reserve | 275,253,729.26 | 275,253,729.26 | ||
Total | 275,253,729.26 | 275,253,729.26 |
Note:
33. Retained earnings
Presented in RMB
Item | Year ended 30 June 2023 | Year ended 30 June 2022 |
Before adjustment: Retained earnings at the end of the previous period | 1,713,155,187.48 | 1,671,121,562.98 |
After adjustment: Retained earnings at the beginning of the reporting period | 1,713,155,187.48 | 1,671,121,562.98 |
Plus:Net profits for the year attributable to owners of the Group | -37,118,182.81 | 153,718,805.57 |
Less: Appropriation for statutory surplus reserve | 34,108,874.33 | |
Dividends payable to ordinary shares | 61,711,260.00 | 89,026,080.00 |
Other | -11,449,773.26 | |
Retained earnings at the end of the reporting period | 1,614,325,744.67 |
Adjustments on beginning retained earnings are as follows:
1). Retrospective adjustments of RMB 0.00 made on beginning retained earnings in accordance with CAS andrelated new regulations.
2). RMB 0.00 on beginning retained earnings due to changes in accounting policies.
3). RMB 0.00 on beginning retained earnings due to corrections of significant accounting errors.
4). RMB 0.00 on beginning retained earnings due to changes in consolidation scope resulting from businesscombinations involving entities under common control.
5). RMB 0.00 on beginning retained earnings due to other adjustments.
34. Operation Income and Costs
Presented in RMB
Item | Year ended 30 June 2023 | Year ended 30 June 2022 | ||
Income | costs | Income | costs | |
Principal activities | 260,483,681.12 | 216,130,758.55 | 364,450,882.21 | 238,944,330.95 |
Other operating activities | 3,133,097.95 | 1,098,668.28 | 1,733,616.69 | 940,941.77 |
Total | 263,616,779.07 | 217,229,426.83 | 366,184,498.90 | 239,885,272.72 |
Income related information:
Presented in RMB
Contract type | Segment 1 | Segment 2 | Total | |
Product Types | ||||
including: | ||||
By business area | ||||
including: | ||||
Market or customer type | ||||
including: | ||||
Type of contract | ||||
including: | ||||
Sort by time of |
goods transfer | ||||
including: | ||||
Sort by contract term | ||||
including: | ||||
By sales channel | ||||
including: | ||||
Total |
Information related to performance obligations:
There are four criteria need to be satisfied when the group recognizing the revenue from property sales: (1) thesale contract has been signed and filed with the land department; (2) the property development is completed andpass the acceptance; (3) For Lump-sum payment, revenue is recognized by the group when the consideration isfully received. For instalment payment, revenue is recognized when the first installment has been received andthe bank mortgage approval procedures have been completed. (4) completed the procedures for entering thepartnership in accordance with the requirements stipulated in sale contract.
Information related to the transaction price allocated to the remaining performance obligations:
At the end of the reporting period, the amount of revenue corresponding to the performance obligations thathave been signed but not yet performed or not yet completed is RMB 383,836,155.28 yuan, Among them, RMB134,646,809.83 yuan is expected to be recognized as revenue in 2023, RMB 155,008,753.46 is expected to berecognized as revenue in the year 2024, and RMB 51,532,342.89 yuan is expected to be recognized as revenuein the year 2025 and subsequent years.
Note: The company complies with the disclosure requirements of "Shenzhen Stock Exchange IndustryInformation Disclosure Guidelines No. 3-Listed Companies Engaged in Real Estate Business"Information of the top five projects that the revenue recognized during the reporting period:
Presented in RMB
No. | Project | Income amount |
1 | TianYue Bay No.2 | 33,679,147.75 |
2 | TianYue Bay No.1 | 20,692,277.20 |
3 | ChuanQi DongHu Building | 14,830,961.90 |
4 | Shenfang CuiLin Building | 3,025,788.60 |
5 | YueJing dongfang Project | 176,190.48 |
35. Taxes and surcharges
Presented in RMB
Item | Current amount | Amount of previous period |
Urban maintenance and construction tax | 569,808.42 | 1,170,922.86 |
Education surcharge | 244,769.19 | 502,679.96 |
Property tax | 797,547.13 | 4,650,644.11 |
Land use tax | 271,394.26 | 322,273.95 |
Vehicle and vessel usage tax | 840.00 | 2,040.00 |
Stamp duty | 48,899.52 | 229,657.72 |
Land appreciation tax | 59,792,949.35 | 49,721,941.06 |
Local education surcharge | 162,868.57 | 337,561.61 |
Embankment protection fees | 7,791.12 | 43,860.73 |
Total | 61,896,867.56 | 56,981,582.00 |
Other notes:
36. Selling and distribution expense
Presented in RMB
Item | Current amount | Amount of previous period |
Employee benefits | 1,571,290.26 | 2,722,521.43 |
Advertising expenses | 2,202,118.31 | 1,366,337.04 |
Entertainment expenses | 218,421.79 | 246,246.42 |
commissions | 1,629,485.30 | 3,940,062.31 |
Others | 3,169,324.52 | 2,450,864.13 |
Total | 8,790,640.18 | 10,726,031.33 |
Other notes:
37. General and administrative expenses
Presented in RMB
Item | Current amount | Amount of previous period |
Employee benefits | 15,886,780.81 | 25,452,857.55 |
Depreciation | 1,257,650.48 | 1,296,844.73 |
Entertainment expenses | 848,919.03 | 1,181,431.41 |
Professional fee | 1,008,889.63 | 932,733.24 |
Travel expense | 65,435.94 | 21,150.06 |
Office expenses | 648,239.75 | 826,098.42 |
Maintenance expenses | 128,922.09 | 343,507.92 |
Utilities | 137,684.88 | 164,773.58 |
Amortization | 251,350.50 | 194,229.28 |
Others | 3,219,326.34 | 2,599,674.33 |
Total | 23,453,199.45 | 33,013,300.52 |
Other notes
38. Financial expense
Presented in RMB
Item | Current amount | Amount of previous period |
Interest expense | 1,609,531.95 | 89,286.77 |
Less: Interest income | 716,366.12 | 2,903,815.84 |
Less: capitalized interest | 1,609,531.95 | 89,286.77 |
Exchange losses/-gains | 11,609.26 | -811,005.72 |
Less: Exchange losses and gains capitalized | ||
Others | 92,489.15 | 113,267.24 |
Total | -612,267.71 | -3,601,554.32 |
Other notes
39. Other Income
Presented in RMB
Item (Source of other income) | Current amount | Amount of previous period |
VAT deduction | 54,434.68 | 236,488.67 |
Subsidies for job-for-training | 33,625.00 |
Employment Support Subsidy | 10,000.00 | |
Stable Job Subsidy | 932.80 | 123,118.76 |
Refund of procedure fee of personal income tax | 68,364.83 | |
Total | 123,732.31 | 403,232.43 |
40. Investment Income
Presented in RMB
Item | Current amount | Amount of previous period |
Investment income from holding held-for-trading financial assets | 161,491.79 | 159,619.01 |
Dividend income from other equity instrument investments during the holding period | 813,960.00 | |
Debt Restructuring Proceeds | 2,489,520.46 | |
Disposal of subsidiaries | 163,352,077.77 | |
Other | 1,644,822.69 | |
Total | 1,806,314.48 | 166,815,177.24 |
Other notes
41. Income from changes in fair value
Presented in RMB
The source of the fair value change income | Current amount | Amount of previous period |
Trading financial assets | 3,477,115.56 | 4,963,730.62 |
Total | 3,477,115.56 | 4,963,730.62 |
Other notes:
The group purchased monetary fund since June 2021 and reached income from changes in fair value for theReporting Period of 3,477,115.56 yuan.
42. Credit impairment loss
Presented in RMB
Item | Current amount | Amount of previous period |
Bad debt losses on other receivables | 8,000.00 | -18,503.49 |
Reversal of impairment of accounts receivable | 440,326.78 | 149,819.69 |
Reversal of impairment of notes receivable | 80,850.00 | |
Total | 529,176.78 | 131,316.20 |
Other notes
43. Impairment loss of assets
Presented in RMB
Item | Current amount | Amount of previous period |
Other notes:
44. Non-operating income
Presented in RMB
Item | Current amount | Amount of previous period | Amount booked into current non-recurring profits and losses |
Penalty/Default Income | 7,202.16 | 550,000.00 | 7,202.16 |
Others | 10,274.56 | 2,207.24 | 10,274.56 |
Total | 17,476.72 | 552,207.24 | 17,476.72 |
Government subsidy counted to the current profit and loss:
Presented in RMB
Item | Issuer | Reason for issue | Subsidy nature | Does the subsidy affect the profit and loss of the year | Whether special subsidy | Current amount | Amount of previous period | Relating to assets or earnings |
Other notes:
45. Non-operating expenses
Presented in RMB
Item | Current amount | Amount of previous period | Amount counted to the current non-operating gain and loss |
Non-monetary asset exchange losses | 1,892.06 | 0.00 | |
Donations provided | 30,000.00 | 43,357.00 | 30,000.00 |
Others | 20,894.08 | 50.00 | 20,894.08 |
Total | 51,480.63 | 45,299.06 | 50,894.08 |
Other notes:
46. Income to expense
(1) Details of income tax expenses
Presented in RMB
Item | Current amount | Amount of previous period |
Current tax expense for the year | -29,856,527.82 | 59,036,968.69 |
Deferred tax expense | 27,275,898.77 | |
Total | -2,580,629.05 | 59,036,968.69 |
(2)Reconciliation between income tax expenses and accounting profit is as follows:
Presented in RMB
Item | Current amount |
Profits/losses before tax | -41,238,752.02 |
Expected income tax expenses at applicable tax rate | -10,309,688.01 |
Impact of different tax rates applied to certain subsidiaries | 547,107.51 |
Adjustment of income tax for the current period of the previous period | 4,439,887.46 |
Impact of tax-free income | 1,320,857.51 |
Effect of non-deductible costs, expenses and losses | 1,421,206.48 |
Income tax expenses | -2,580,629.05 |
Other notes
47. Other comprehensive income
Refer to Note VII. 31 for details.
48. Cash Flow Statement
(1) Proceeds from operating activities
Presented in RMB
Item | Current amount | Amount of previous period |
Interest income | 451,599.51 | 2,805,382.05 |
Deposits and security deposits | 910,167.70 | 244,977.70 |
Maintenance Fund | 34,057.61 | 46,833.81 |
Collecting fee for certifications on behalf | 655,731.73 | 680,720.00 |
Others | 72,170,059.77 | 70,573,645.41 |
Total | 74,221,616.32 | 74,351,558.97 |
Note:
(2) Payment for other operating activities
Presented in RMB
Item | Current amount | Amount of previous period |
Payment for general and administrative expenses | 4,462,006.40 | 3,613,201.28 |
Payment for selling and distribution expenses | 4,028,948.96 | 2,931,332.85 |
Deposits and security deposits | 2,766,624.73 | 472,001.70 |
Paying fee for certifications on behalf | 585,125.55 | 17,696.81 |
Others | 129,517,304.16 | 181,834,327.89 |
Total | 141,360,009.80 | 188,868,560.53 |
Note:
(3) Proceeds from other investing activities
Presented in RMB
Item | Current amount | Amount of previous period |
Purchase of monetary fund | 136,800,000.00 | 115,000,000.00 |
Total | 136,800,000.00 | 115,000,000.00 |
Note:
(4) Payment for other investing activities
Presented in RMB
Item | Current amount | Amount of previous period |
Note:
(5) Proceeds from other financing activities
Presented in RMB
Item | Current amount | Amount of previous period |
Note:
(6) Payment for other financing activities
Presented in RMB
Item | Current amount | Amount of previous period |
Note:
49. Supplementary information of the cash flow statement
(1) supplementary information of the cash flow statement
Presented in RMB
Supplementary information | Current amount | Amount of previous period |
1. Adjust net profit to cash flow from operating activities: | ||
Net profit | -38,658,122.97 | 142,960,262.63 |
Add: Provisions for impairment of assets | 529,176.78 | 131,316.20 |
Depreciation of Fixed Assets, Depreciation of Investment Real Estate, Depreciation of Oil and Gas Assets, Depreciation of Productive Biological Assets | 14,214,001.61 | 14,088,045.80 |
Depreciation of Right-of-use Assets | 66,427.62 | 66,427.63 |
Amortization of intangible assets | ||
Amortization of long-term deffered expenses | 367,035.40 | 183,931.86 |
Loss on disposal of fixed assets, intangible assets and other long-term assets (marked with "-" for gains) | ||
Loss on the scrapping of fixed assets (marked with "-" for income) | -2,009.21 | 1,892.06 |
Loss from changes in fair value (marked with "-" for earnings) | -3,477,115.56 | -4,963,730.62 |
Financial expenses (revenue marked with "-") | 11,609.26 | -811,005.72 |
Loss on investment (marked with "-" for income) | -1,806,314.48 | -166,815,177.24 |
Deferred tax assets decreased (marked with "-" for increase) | -29,856,527.82 | 12,024,737.52 |
Deferred tax liability increased (marked with "-" for decrease) | -2,984,434.17 | |
Decrease in stock (marked with "-" for increase) | -17,204,930.10 | -35,445,828.25 |
Decrease of operating receivable items (marked with "-" for | -28,003,759.61 | -53,847,916.31 |
increase) | ||
Increase in operational payable items (marked with "-" for decrease) | -88,320,418.96 | -452,703,664.73 |
Other | ||
Net cash flow from operating activities | -192,140,948.04 | -548,115,143.34 |
2. Major investment and financing activities that do not involve cash receipts and expenditures: | ||
Debt to capital | ||
A convertible corporate bond maturing within one year | ||
Leasing of fixed assets through financing | ||
3. Net changes in cash and cash equivalents: | ||
Ending balance of cash | 174,781,114.58 | 319,956,294.72 |
Minus: Opening balance of cash | 190,365,069.48 | 612,293,635.15 |
Plus: Ending balance of cash equivalents | ||
Minus: Beginning balance of cash equivalents | ||
Net increase in cash and cash equivalents | -15,583,954.90 | -292,337,340.43 |
(2) Composition of cash and cash equivalents
Presented in RMB
Item | Ending balance | Opening balance |
Cash at bank and on hand | 174,781,114.58 | 190,365,069.48 |
Cash and cash equivalents at 30 June 2023 | 174,781,114.58 | 190,365,069.48 |
Other notes:
50. Notes for items in the statement of changes in owners' equity
Notes to the name of “Other” of ending balance of the same period of last year adjusted and the amountadjusted:
51. Assets whose ownership or use rights are restricted
Presented in RMB
Item | Ending book value | Limited reason |
Cash at bank and on hand | 5,674,439.78 | Shenzhen Longgang District Urban Renewal Project and Surrounding Public Facilities Project-Construction Funds |
Inventories | 965,000,000.00 | Land mortgage of project development loan |
Cash at bank and on hand | 388,115.74 | Litigation freeze |
Accounts receivable | 45,050,727.80 | Short-term loan pledge |
Total | 1,016,113,283.32 |
Other notes:
52. Foreign currency monetary items
(1) Foreign currency monetary items
Presented in RMB
Item | Ending Foreign Currency Balance | Discount rate | Balance converted into RMB at the end |
Monetary fund | |||
Including:US dollar | 10,250.16 | 7.2098 | 73,901.60 |
The euro | |||
Hong Kong dollars | 6,370,721.40 | 0.92048 | 5,864,121.63 |
Accounts receivable | |||
Including:US dollar | 24,483.34 | 7.2098 | 176,519.98 |
The euro | |||
Hong Kong dollars | 4,905,150.10 | 0.92048 | 4,515,092.56 |
Long-term borrowing | |||
Including:US dollar | |||
The euro | |||
Hong Kong dollars | |||
Other receivables | |||
Including: Hong Kong dollars | 513,915.14 | 0.92048 | 473,048.61 |
Prepayments | |||
Including: Hong Kong dollars | 253.12 | 0.92048 | 232.99 |
Accounts payable | |||
Including: Hong Kong dollars | 2,000.00 | 0.92048 | 1,840.96 |
Other payables | |||
Including:US dollar | 11,781.17 | 7.2098 | 5,205,797.88 |
Other notes:
(2) Note to overseas operating entities, including important overseas operating entities, which shouldbe disclosed about its principal business place, function currency for bookkeeping and basis for thechoice. In case of any change in function currency, the cause should be disclosed.
□ Applicable √ Not Applicable
53. Government subsidies
(1) Basic information of government subsidies
Presented in RMB
Sources | Amount | Listed items | Amount recorded in the current profit or loss |
Tax subsidy | 122,799.51 | Other Income | 122,799.51 |
Stable employment subsidy | 932.80 | Other Income | 932.80 |
(2) Refunding of the government subsidies
□ Applicable √ Not Applicable
Other notes:
VIII. Change of consolidation scope
1. Business combinations involving enterprises not under common control
(1) Business combinations involving enterprises not under common control occurred during theReporting Period
Presented in RMB
Name of acquiree | Time and place of gaining the equity | Cost of gaining the equity | Proportion of equity | Way to gain the equity | Purchase date | Recognition basis of purchase date | Income of acquiree from the purchase date to period-end | Net profits of acquiree from the purchase date to period-end |
Other notes:
(2) Acquisition cost and goodwill
Presented in RMB
Acquisition cost | |
--Cash | |
--Fair value of non-cash assets | |
--Fair value of debts issued or undertaken | |
--Fair value of equity securities issued | |
--Fair value of contingent consideration | |
--Fair value of equities held before the purchase date on the purchase date | |
--Other | |
Total acquisition cost | |
Less: fair value of identifiable net assets acquired | |
The amount of goodwill/acquisition cost less than the fair value share of identifiable net assets obtained |
Note to determination method of the fair value of the acquisition cost, consideration and changes:
The main reasons for the formation of large-value goodwill:
Other notes:
(3) Identifiable assets and liabilities of the acquiree at the acquisition date
Presented in RMB
Fair value on purchase date | Carrying value on purchase date | |
Assets: | ||
Monetary assets | ||
Accounts receivable | ||
Inventories | ||
Fixed assets | ||
Intangible assets | ||
Liabilities: | ||
Borrowings | ||
Accounts payable | ||
Deferred income tax liabilities | ||
Net assets | ||
Less: Non-controlling interests | ||
Net assets acquired |
The determination method of the fair value of identifiable assets and liabilities:
Contingent liabilities of acquirees undertaken in the business combination:
Other notes:
(4) Gain or loss from remeasurement of equity interests held prior to acquisition date to fair valueWhether there are multiple transactions to achieve the business merger step by step and gain control during thereporting period
□ Yes √ No
(5) If it is impossible to reasonably determine the merger consideration or the fair value of the assetsand liabilities recognized by the purchaser on the purchase date or at the end of the current period, theGroup shall disclose the fact and reasons.
(6) Other Note
2. Business combinations involving enterprises under common control
(1) Business combinations involving enterprises under common control during the period
Presented in RMB
Combined party | Proportion of the equity | Basis | Combination date | Recognition basis of combination date | Income from the period-begin to the combination date of the acquiree | Net profits from the period-begin to the combination date of the acquiree | Income of the acquiree during the period of comparison | Net profits of the acquiree during the period of comparison |
Other notes:
(2) Combination cost
Presented in RMB
Combination cost | |
--Cash | |
--Carrying value of non-cash assets | |
--Carrying value of issued or assumed debts | |
--Carrying value of issued equity securities | |
--Contingent consideration |
Contingent liabilities and changes thereof:
Other notes:
(3) Book value of merged party’s assets and liabilities in combination date
Presented in RMB
Combination date | Period-end of the last period | |
Assets: | ||
Monetary assets | ||
Receivables | ||
Inventories | ||
Fixed assets | ||
Intangible assets | ||
Liabilities: | ||
Loans | ||
Payables | ||
Net assets | ||
Less: Non-controlling interests | ||
Net assets acquired |
Contingent liabilities of the combined party undertaken in the business combination:
Other notes:
3. Reverse buying
Basic information of trading, the basis of transactions constitutes counter purchase, the retain assets, liabilitiesof the listed companies whether constituted a business and its basis, the determination of the combination costs,the amount and calculation of adjusted rights and interests in accordance with the equity transaction process:
4. Disposal of subsidiaries
Whether subsidiaries reduced due to single disposal until loss of control
□ Yes √ No
Whether exists multiple transactions to dispose of the equity step by step to the loss of control and the reductionof the subsidiary
□ Yes √ No
5. Other reason for change of consolidation scope
Describe other changes in the consolidation scope (e.g., new subsidiaries, liquidation of subsidiaries, etc.) andrelevant situations:
6. Other
IX. Interest in other entities
1. Interests in subsidiaries
(1) Composition of the Group
Name of the Subsidiary | Principal place of business | Registration place | Business nature | Shareholding % | Acquisition method | |
Direct | Indirect | |||||
Shenzhen City SPG Long Gang Development Ltd. | Shenzhen | Shenzhen | Real estate development | 95.00% | 5.00% | Acquiring through establishment or investment |
American Great Wall Co., Ltd | U.S. | U.S. | Real estate development | 70.00% | Acquiring through establishment or investment | |
Shenzhen Petrel Hotel Co. Ltd. | Shenzhen | Shenzhen | Hotel Services | 68.10% | 31.90% | Acquiring through establishment or investment |
Shenzhen Zhen Tung Engineering Ltd. | Shenzhen | Shenzhen | Installation and maintenance | 73.00% | 27.00% | Acquiring through establishment or investment |
Shenzhen City We Gen Construction Management Ltd. | Shenzhen | Shenzhen | Supervision | 75.00% | 25.00% | Acquiring through establishment or investment |
Shenzhen Lain Hua Industry and Trading Co., Ltd. | Shenzhen | Shenzhen | Mechanical & Electrical device installation | 95.00% | 5.00% | Acquiring through establishment or investment |
Fresh Peak Zhiye Co., Ltd. | Hong Kong | Hong Kong | Investment and management | 100.00% | Acquiring through establishment or investment | |
Xin Feng Enterprise Co., Ltd. | Hong Kong | Hong Kong | Investment and management | 100.00% | Acquiring through establishment or |
investment | ||||||
Shenzhen City Shenfang Free Trade Trading Ltd. | Shenzhen | Shenzhen | Commercial trade | 95.00% | 5.00% | Acquiring through establishment or investment |
Shenzhen City Shenfang Investment Ltd. | Shenzhen | Shenzhen | Investment | 90.00% | 10.00% | Acquiring through establishment or investment |
Beijing fresh peak property development management limited company | Beijing | Beijing | Real estate | 75.00% | 25.00% | Acquiring through establishment or investment |
Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd. | Huizhou | Huizhou | Real estate | 51.00% | Acquiring through business acquisition | |
Shenzhen Shenfang Chuanqi Real Estate Development Co., Ltd. | Shenzhen | Shenzhen | Real estate | 100.00% | Acquiring through establishment or investment |
Note to shareholding ratio is different from the voting ratio in subsidiaries:
The basis of holding half or less of the voting rights but still controlling the investee and holding more than halfof the voting rights but not controlling the investee:
The basis for controlling significant structured entities in the scope of merger:
The basis for determining whether a company is an agent or a principal:
Other notes:
① In consolidation scope, there are four subsidiaries in “revoked but not cancelled” condition: Beijing SPGProperty Management Limited, Guangzhou Huangpu Xizun real estate limited company, Fresh Peak RealEstate Dev. Construction (Wuhan) Co. Ltd. and Beijing Shenfang Property Management Co., Ltd. They arepresented on the basis of discontinued operations; these five subsidiaries have made full provision forimpairment of debt for the companies outside the consolidation scope.
②The cancelled, revoked and closed subsidiaries of the Company that are not included in the scope ofconsolidation are as follows:
Name of the Subsidiary | Principal | Place of | Business nature | Shareholding | Acquisition |
place of business | registration | proportion | method | |||
Direct | Indirect | |||||
Shenzhen Shenfang Department Store Co.Ltd | Shenzhen | Shenzhen | Commercial trade | 95.00 | 5.00 | Acquiring through establishment or investment |
Paklid Limited | Hong Kong | Hong Kong | Commercial trade | 60.00 | 40.00 | Acquiring through establishment or investment |
Bekaton Property Limited | Australia | Australia | Real estate | 60.00 | -- | Acquiring through establishment or investment |
Canada Great Wall (Vancouver) | Canada | Canada | Real estate | -- | 60.00 | Acquiring through establishment or investment |
Guangdong Fengkai County Lianfeng Cement Manufacturing Co., Ltd. | Fengkai Guangdong | Fengkai Guangdong | Manufacturing | -- | 90.00 | Acquiring through establishment or investment |
Jiangmen Xinjiang Real Estate Co., Ltd | Jiangmen Guangdong | Jiangmen Guangdong | Real estate | -- | 90.91 | Acquiring through establishment or investment |
Xi’an Fresh Peak Property Trading Co., Ltd | Xi’an Shanxi | Xi’an Shanxi | Real estate | -- | 67.00 | Acquiring through establishment or investment |
Shenxi Limited | Shenzhen | Shenzhen | Building Decoration | 70.00 | -- | Acquiring through establishment or investment |
Shenzhen Zhentong New Electromechanical Industry Development Co., Ltd. | Shenzhen | Shenzhen | Mechanical and electrical engineering | 95.00 | 5.00 | Acquiring through establishment or investment |
Shenzhen Real Estate Electromechanical Management Company | Shenzhen | Shenzhen | Electromechanical Management | 100.00 | -- | Acquiring through establishment or investment |
Shenzhen Nanyang Hotel Co., Ltd. | Shenzhen | Shenzhen | Hotel Management | 95.00 | 5.00 | Acquiring through establishment or investment |
Shenzhen Kangtailong Industrial Electric Cooker Co., Ltd. | Shenzhen | Shenzhen | Industrial manufacturing | -- | 100.00 | Acquiring through establishment or investment |
Shenzhen Longgang Henggang Huagang Industrial Co., Ltd. | Shenzhen | Shenzhen | Industrial Investment | -- | 79.92 | Acquiring through establishment or investment |
Note:
1. Shenzhen Shenfang Department Store Co. Ltd called a shareholder meeting on 29 October 2007, decided toterminate the business and establish a liquidation team to conduct the liquidation. The liquidation team issued aliquidation report on 7 December, 2007.
2. Paklid Limited, Bekaton Property Limited and Canada Great Wall (Vancouver) were established by thegroup abroad in the early years. On 13 December 2000, the group held a board meeting and decided to liquidatethese three companies. Bekaton Property Limited and Canada Great Wall (Vancouver) have been winded up.
3. All assets from Guangdong Fengkai County Lianfeng Cement Manufacturing Co., Ltd. (including tangibleand intangible asset) were auctioned by the court on 22 January 2019, becoming a shell company.
4. Shenxi Limited was a holding subsidiary of Shenzhen Tefa Real Estate Consolidated Services Co., Ltd.which is a deregistered subsidiary of the group. By the Group’s announcement, “The notice on the merger ofShenzhen Zhen Tung Engineering Ltd and Shenxi Limited” (Shenfang [1997] No.19), all businesses formShenxi Limited were undertaken by Shenzhen Zhen Tung Engineering Ltd and Shenxi Limited and wererevoked on 8 February 2002.
The group could no longer effectively control these invested companies which have not been included in theconsolidation scope were either been cancelled or ceased operation many years ago, and were no longer exist.According to “Accounting Standard for Business Enterprises No. 33-Consolidated Financial Statements”, thegroup already accrued full amount of impairment for the book value of the net investment in above companieswhich are not included in the consolidated scope.
(2) Material non-wholly owned subsidiaries
Presented in RMB
Name of the Subsidiary | Proportion of ownership interest held by non-controlling interests % | Profit or loss allocated to non-controlling interests during the year | Dividend declared to non-controlling shareholders during the year | Balance of non-controlling interests as at 2023.6.30 |
Great Wall Estate Co., Inc | 30.00% | -42,734.35 | -22,331,144.86 | |
Fresh Peak Investment Ltd | 45.00% | -258.69 | -116,180,132.59 | |
Barenie Co. Ltd. | 20.00% | -198.54 | -3,892,312.98 | |
Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd. | 49.00% | -1,995,664.77 | 422,665,964.05 |
Note to shareholding ratio of minority shareholder is different from the voting ratio:
Other notes:
(3) Key financial information about material non-wholly owned subsidiaries
Presented in RMB
Name | As at 30 June 2023 | As at 1 January 2023 | ||||||||||
Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
Great Wall Estate Co., Inc | 250,421.58 | 19,920,331.33 | 20,170,752.91 | 113,437,480.80 | 0.00 | 113,437,480.80 | 157,276.13 | 19,242,855.50 | 19,400,131.63 | 109,489,015.64 | 109,489,015.64 | |
Fresh Peak Investment Ltd | 4,837.87 | 36,016.90 | 40,854.77 | 258,219,010.18 | 0.00 | 258,219,010.18 | 220,030,110.80 | 220,030,110.80 | 254,831,542.93 | 254,831,542.93 | ||
Barenie Co. Ltd. | 1,077.88 | 1,077.88 | 32,922,013.48 | 0.00 | 32,922,013.48 | 1,046.02 | 1,046.02 | 32,920,988.91 | 32,920,988.91 | |||
Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd. | 1,486,739,140.61 | 5,218,484.42 | 1,491,957,625.03 | 1,511,714,588.75 | 12,377.36 | 1,511,726,966.11 | 1,468,798,461.17 | 5,502,260.78 | 1,474,300,721.95 | 1,489,943,392.55 | 53,885.23 | 1,489,997,277.78 |
Presented in RMB
Name of the Subsidiary | Current amount | Amount of previous period | ||||||
Operating income | Net profit | Total comprehensive income | Cash flows from operating activities | Operating income | Net profit | Total comprehensive income | Cash flows from operating activities | |
Great Wall Estate Co., Inc | 340,294.12 | -142,447.83 | -142,447.83 | -30,443.57 | 260,141.10 | -505,165.93 | -4,531,644.62 | -495,723.39 |
Fresh Peak Investment Ltd | -574.87 | -574.87 | ||||||
Barenie Co. Ltd. | -992.71 | -992.71 | ||||||
Guangdong Jianbang Group | -4,072,785.25 | -4,072,785.25 | -14,762,328.06 | 0.00 | -4,115,342.31 | -4,115,342.31 | -110,177,413.44 |
(Huiyang)IndustrialCo., Ltd.
Other notes:
(4) Material restriction on the use of the Group’s assets and the settlement of the Group’s liabilities
(5) Financial support or other support provided to structured entities included in the scope of theconsolidated financial statementsOther notes:
2. Transactions that cause changes in the Group’s interests in subsidiaries that do not result in loss ofcontrol
(1) Changes in the Group’s interests in subsidiaries:
(2) Impact from transactions with non-controlling interests and equity attributable to the owners ofthe Group:
Presented in RMB
Purchase cost/disposal consideration | |
--Cash | |
--Fair value of non-cash assets | |
Total of purchase cost /disposal consideration | |
Less: Subsidiary net assets proportion calculated by share proportion obtained/disposal | |
Difference | |
Of which: Adjustment of capital reserves | |
Surplus reserves adjustments | |
Retained profits adjustments |
Other notes
3. Interests in joint ventures or associates
(1) Material joint ventures or associates
Name | Main operating place | Registration place | Nature of business | Shareholding percentage (%) | Accounting treatment of the investment to joint venture or associated enterprise | |
Directly | Indirectly |
Notes to holding proportion of joint venture or associated enterprise different from voting proportion:
Basis of holding less than 20% of the voting rights but has a significant impact or holding 20% or more votingrights but does not have a significant impact:
(2) Key financial information of material joint ventures:
Presented in RMB
Ending balance/amount incurred in the reporting period | Opening balance/amount incurred in the previous period | |
Current assets | ||
Of which: cash and cash equivalents | ||
Non-current assets | ||
Total assets | ||
Current liabilities | ||
Non-current liabilities | ||
Total liabilities | ||
Equity of non-controlling interests | ||
Equity attributable To shareholders of the Company as the parent | ||
Portion of net assets calculated according to proportion of shareholdings | ||
Adjusted | ||
-Goodwill | ||
-Unrealized profits of internal transactions | ||
-Others | ||
Carrying value of equity investment to joint ventures | ||
Fair value of equity investments of joint ventures with public offer | ||
Operating revenue | ||
Finance expense | ||
Income tax expense | ||
Net profit | ||
Net profit from discontinued operations | ||
Other comprehensive income | ||
Total comprehensive income | ||
Dividends received from joint ventures in the Reporting Period |
Other notes
(3) Key financial information of material associates:
Presented in RMB
Ending balance/amount incurred in the reporting period | Opening balance/amount incurred in the previous period | |
Current assets |
Non-current assets | ||
Total assets | ||
Current liabilities | ||
Non-current liabilities | ||
Total liabilities | ||
Equity of non-controlling interests | ||
Equity attributable To shareholders of the Company as the parent | ||
Portion of net assets calculated according to proportion of shareholdings | ||
Adjusted | ||
-Goodwill | ||
-Unrealized profits of internal transactions | ||
-Others | ||
Carrying value of equity investment to associated enterprises | ||
Fair value of equity investments of associated enterprises with public offer | ||
Operating revenue | ||
Net profit | ||
Net profit from discontinued operations | ||
Other comprehensive income | ||
Total comprehensive income | ||
Dividends received from associated enterprises in the Reporting Period |
Other notes
(4) Summarized financial information of immaterial joint ventures and associates:
Presented in RMB
Ending balance/amount incurred in the reporting period | Opening balance/amount incurred in the previous period | |
Joint ventures: | ||
The total number of the following items based on shareholding ratio | ||
Associates: | ||
Aggregate book value of investments | 93,937.67 | 93,937.67 |
The total number of the following items based on shareholding ratio | ||
-Net profits | -178,240.64 |
Other notes
(5) Material restrictions on transfers of funds from investees to the Group
(6) Excess loss from joint ventures or associates
Presented in RMB
Investee | Accumulated unrecognized loss in prior periods | Unrecognized loss (or share of net profit) for the reporting period | Accumulated unrecognized loss as at 2023.6.30 |
Shenzhen Fresh Peak property consultant Co., Ltd | 2,217,955.89 | 2,217,955.89 |
Note:Shenzhen Fresh Peak property consultant Co., Ltd was established on 15 March 1993 with registeredcapital of 3,000,000 yuan. The group subscribed RMB 600,000 (20% in total capital). As at 30 June 2023, thegroup contributed RMB 600,000 and already confirmed long-term equity invent lose RMB 600,000.
(7) Unrecognized commitments in connection with its investment in joint ventures
(8) Contingent liabilities in connection with its investment in joint ventures or associates
4. Material joint operations
Name | Main operating place | Registration place | Nature of business | Proportion /Share portion | |
Directly | Indirectly |
Notes to holding proportion or share portion in common operation different from voting proportion:
For common operation as a single entity, basis of classifying as common operation:
Other notes
5. Interests and interests in structured entities not included in the scope of consolidated financialstatementsNote to structured entities not included in the scope of consolidated financial statements:
6. Other
X. Risk Management of Financial InstrumentsThe Group's main financial instruments include the monetary funds, notes receivable, other receivables, Othercurrent assets, accounts receivable, other equity instrument investments, notes payable, accounts payable, otherpayables, short-term borrowing, lease liabilities. Details of the various financial instruments are disclosed in therelevant notes. The risks associated with these financial instruments and the risk management policies adoptedby the Group to mitigate these risks are described below. The management of the Group manages and monitorsthese exposures to ensure that these risks are contained within the limits specified.
1. Risk management objectives and policies
The Group's goal in risk management is to strike an appropriate balance between risks and benefits, and striveto reduce the adverse impact of financial risks on the Group's financial performance. Based on this riskmanagement objective, the Group has developed a risk management policy to identify and analyze the risks
faced by the Group, set an appropriate acceptable risk level and design the corresponding internal controlprocedures to monitor the risk level of the Group.The Group regularly reviews these risk management policiesand the relevant internal control systems to adapt to market conditions or changes in the Group's businessactivities. The Group's internal audit department also regularly or randomly checks whether the implementationof the internal control system complies with the risk management policy.
The main risks arising from the Group's financial instruments are credit risk, liquidity risk, market risk(including exchange rate risk, interest rate risk and commodity price risk).
The Board of Directors is responsible for planning and establishing the Group's risk management structure,formulating the Group's risk management policies and relevant guidelines and overseeing the implementation ofrisk management measures. The Group has developed risk management policies to identify and analyze therisks faced by the Group. These risk management policies clearly stipulate specific risks, covering market risk,credit risk, liquidity risk management and many other aspects. The Group regularly evaluates changes in themarket environment and the Group's business activities to determine whether to update its risk managementpolicies and systems.
The Group diversifies the risks of financial instruments through appropriate diversification of its portfolio ofinvestments and businesses, and reduces the risk of concentration in a single industry, a specific region or aspecific counterparty through the development of appropriate risk management policies.
(1)Credit Risk
Credit risk refers to the risk of financial loss to the Group resulting from the failure of the counterparty to fulfillits contractual obligations.
The Group manages credit risks according to portfolio classification. Credit risks mainly arise from bankdeposits, notes receivable, accounts receivable, other receivables.
The Group's bank deposits are mainly held in state-owned banks and other large and medium-sized listed banks(or mainly in financial institutions with good reputations and high credit ratings), and the Group does not expectthat the bank deposits will pose a significant credit risk.
For notes receivable, accounts receivable, other receivables and long-term receivables, the Group sets policiesto control credit risk exposure. The Group evaluates customers' credit qualifications and sets credit periodsbased on their financial status, credit history and other factors such as current market conditions. The Groupwill regularly monitor the credit records of customers. For customers with poor credit records, the Group willuse written methods to urge payment, shorten the credit period or cancel the credit period to ensure that theoverall credit risk of the Group is within a controllable range.
The debtors of the Group's accounts receivable are customers distributed in different industries and regions.TheGroup continuously conducts credit assessments on the financial position of accounts receivable and, whereappropriate, takes out credit guarantee insurance.
The maximum credit risk exposure of the Group is the carrying amount of each financial asset on the balancesheet. The Group does not provide any other security which may expose the Group to a credit risk.Of the Group's accounts receivable, the accounts receivable of the top five customers account for 72.39% of theGroup's total accounts receivable (in 2022: 56.87%); Among other receivables of the Group, other receivablesfrom the top five companies in arrears amount to 65.00% (in 2022:58.72%) of the total amount of otherreceivables of the Group.
(2)Liquidity risk
Liquidity risk refers to the risk that the Group will encounter a shortage of funds when fulfilling its obligationsto settle by delivering cash or other financial assets.
In managing liquidity risks, the Group maintains and monitors cash and cash equivalents deemed sufficient bythe management to meet the operational needs of the Group and to reduce the impact of cash flow fluctuations.The Group's management monitors the use of bank borrowings and ensures compliance with borrowingagreements. It also secured a commitment from major financial institutions to provide adequate standby fundsto meet short - and long-term funding needs.
The Group finances its working capital through funds generated from its operations and bank and otherborrowings. As at 30 June 2023, the Group's unutilized bank loan amount is RMB 738.1234 million (31December 2022: RMB 439.71 million).
At the end of the period, the maturity analysis of the financial liabilities and off-balance sheet guarantee itemsheld by the Group according to the undiscounted remaining contract cash flow is as follows (unit: RMB10,000) :
Item | 30 June 2023 | |||
Within one year | Within one to five years | More than five years | Total | |
Financial liabilities: | ||||
Short-term loans | 4,505.07 | 4,505.07 | ||
Accounts payable | 39,885.7 | 39,885.7 | ||
Other payables | 55,506.56 | 55,506.56 | ||
Non-current liabilities due within one year | 2,006.62 | 2,006.62 | ||
Long-term loans | 14,189.34 | 14,189.34 | ||
Lease liabilities | 1.24 | 1.24 | ||
Guarantees for client | 38,038.27 | 38,038.27 | ||
Total financial liabilities and contingent liabilities | 139,942.22 | 14,190.58 | 154,132.80 |
At the beginning of the period, the maturity analysis of the financial liabilities and off-balance sheet guaranteeitems held by the Group according to the undiscounted remaining contract cash flow is as follows (unit: RMB10,000) :
Item | 31 December 2022 | |||
Within one year | Within one to five years | More than five years | Total | |
Financial liabilities | ||||
Short-term loans | 5,113.81 | 5,113.81 | ||
Notes payable | 42,478.79 | 42,478.79 | ||
Accounts payable | 56,761.54 | 56,761.54 | ||
Interest payables | 618.88 | 618.88 | ||
Other payables | 5,426.10 | 5,426.10 | ||
Held-for-sale liabilities | 5.39 | 5.39 | ||
Guarantees for client | 40,158.39 | 40,158.39 | ||
Total financial liabilities and contingent liabilities | 150,562.90 | 150,562.90 |
The amount of financial liabilities disclosed in the above table is undiscounted contractual cash flows and maybe different from the carrying amount on the balance sheet.
The maximum amount of a guarantee contract that has been signed does not represent the amount to be paid.
(3)Market risks
The market risk of financial instruments refers to the risk that the fair value or future cash flow of financialinstruments will fluctuate due to market price changes, including interest rate risk, exchange rate risk and otherprice risks.
Interest rate riskInterest rate risk refers to the risk that the fair value of a financial instrument or future cash flow will fluctuatedue to changes in market interest rates. Interest rate risk can arise from recognized interest-bearing financialinstruments and from unrecognized financial instruments (such as certain loan commitments).
The interest rate risk of the Group mainly arises from bank borrowings. Floating interest rate financial liabilitiesexpose the Group to cash flow interest rate risk, while fixed interest rate financial liabilities expose the Group tofair value interest rate risk. The Group determines the relative proportion of fixed and floating rate contractsbased on prevailing market conditions and maintains an appropriate mix of fixed and floating rate instrumentsthrough regular review and monitoring.During the reporting period, the Group operates by its own working capital. As at 30 June 2021, the Group hasno financial liabilities with fixed or floating interest rate, such as bank loan. Therefore, the Group believes thatthe interest rate risk is insignificant.
Currency riskThe term "exchange rate risk" refers to the risk that the fair value of a financial instrument or future cash flowwill fluctuate due to changes in foreign exchange rates. Exchange rate risk can arise from financial instrumentsdenominated in a foreign currency other than the standard currency.
Exchange rate risk is mainly the Group's financial position and cash flows are affected by foreign exchange ratefluctuations. In addition to the subsidiary established in Hong Kong holding assets in Hong Kong dollar as thesettlement currency, only a small amount of Hong Kong market investment business, the group's foreigncurrency assets and liabilities accounted for the overall assets and liabilities of the proportion is not significant.Therefore, the Group believes that the exchange rate risk is not significant.
2. Capital Management
The objective of the Group's capital management policy is to ensure that the Group can continue as a goingconcern, thereby providing a return to shareholders and benefiting other stakeholders, while maintaining anoptimal capital structure to reduce the cost of capital.
In order to maintain or adjust its capital structure, the Group may adjust its financing method, adjust the amountof dividends paid to shareholders, return capital to shareholders, issue new shares and other equity instrumentsor sell assets to reduce its debt.
The Group monitors the capital structure on the basis of the debt-to-asset ratio (i.e., total liabilities divided bytotal assets). As at 30 June 2023, the Group's liability to asset ratio was 23.28% (31 December 2021: 24.66%).XI. Fair Value
1. Items and amounts measured at fair value at the end of reporting period
Presented in RMB
Item | As at 30 June 2023 | |||
The first level of fair value measurement | The second level of fair value measurement | The third level of fair value measurement | Total | |
I.Recurring fair value measurement | -- | -- | -- | -- |
(1) Trading financial assets | 274,992,968.77 | 274,992,968.77 | ||
1. Financial assets at fair value through profit or loss | 274,992,968.77 | 274,992,968.77 | ||
(3) Investments in other equity instrument | 14,191,290.63 | 14,191,290.63 | ||
Total liabilities measured at fair value on a recurring basis | 274,992,968.77 | 14,191,290.63 | 289,184,259.40 |
II. Non-recurring fair value measurements | -- | -- | -- | -- |
2. Basis for determining the market price of the items measured based on the continuous and non -continuous first level fair valueLevel 1 inputs: unadjusted quoted prices in active markets that are observable at the measurement date foridentical assets or liabilities.
3. Items measured based on the continuous or uncontinuous 2nd level fair value, valuation technique asused, nature of important parameters and quantitative informationLevel 2 inputs: inputs other than Level 1 inputs that are either directly or indirectly observable for underlyingassets or liabilities.
4. Items measured based on the continuous or uncontinuous 3rd level fair value, valuation technique asused, nature of important parameters and quantitative informationLevel 3 inputs: inputs that are unobservable for underlying assets or liabilities.
Item | Ending fair value | Valuation techniques | The input value cannot be observed | Range (weighted mean ) |
Equity instrument investment | ||||
Non-listed equity investments | 14,191,290.63 | Net asset method | Net assets in the book Liquidity discount | / |
5. Items measured based on the continuous 3rd level fair value, sensitivity analysis on adjustedinformation and unobservable parameters between the book value at beginning and end of the period
6. In case items measured based on fair value are converted between different levels incurred in thecurrent period, state the cause of conversion and determine conversion time point
7. Change of valuation technique incurred in the current period and cause of such change
8. the carrying value of other financial assets and financial liabilities which are not measured at fair valuevaries
9. Other
Fair value of financial assets and financial liabilities not measured at fair valueThe financial assets and financial liabilities of the Group measured at amortized cost mainlyinclude monetary funds, notes receivable, accounts receivable, other receivables, short-termborrowings, notes payable, accounts payable, other payables, etc.
Except for the following financial assets and financial liabilities, the carrying value of other financial assets andfinancial liabilities which are not measured at fair value varies very little from fair value.XII. Related parties and related party transactions
1. Information about the parent of the Group
Name | Registration place | Business nature | Registered capital | Shareholding percentage % | Percentage of voting rights % |
Shenzhen Investment Holdings Co., Ltd. | Shenzhen, Guangdong province | Investment, real estate development, guarantee | 3,050,900.00 | 55.78% | 55.78% |
Note:
The ultimate controlling party of the Group is State-owned Assets Supervision and Management Commission ofShenzhen Municipal People’s Government.Other notes:
In the reporting period, the changes in the registered capital of the parent company are as follows:
Opening balance | Accrued during the year | Decreased during the year | Ending balance |
3,050,900.00 | 185,000.00 | -- | 3,235,900.00 |
2. Information about the subsidiaries of the Group
For information about the subsidiaries of the Group, refer to Note IX “1. Interests in subsidiaries”.
3. Information about joint ventures and associates of the Group
For information about the joint ventures and associates of the Company, refer to Note IX. 3“Summarizedfinancial information of immaterial joint ventures and associates”
Joint ventures and associates that have related party transactions with the Group during this year or the previousyear are as follows:
Name of joint ventures or associates | Relationship with the Group |
Other notes
4. Information on other related parties
Name | Related party relationship |
Shenzhen Jian ?an Group Co., Ltd. | Both controlled by the parent company |
Shenzhen Dongfang New world store Co., Ltd | Participating stock companies |
Shenxi Limited | Not included in Consolidated Financial Statements‘ Subsidiary that had been terminated its licenses by law but not cancellation |
Shenzhen Zhentong New Electromechanical Industry | Not included in Consolidated Financial |
Development Co., Ltd. | Statements‘ Subsidiary (Long-term without operation) |
Shenzhen Nanyang Hotel Co., Ltd. | Not included in Consolidated Financial Statements‘ Subsidiary that had been terminated its licenses by law but not cancellation |
Shenzhen Real Estate Electromechanical Management Company | Not included in Consolidated Financial Statements‘ Subsidiary that had been terminated its licenses by law but not cancellation |
Shenzhen Longgang Henggang Huagang Industrial Co., Ltd. | Not included in Consolidated Financial Statements‘ Subsidiary that had been terminated its licenses by law but not cancellation |
Guangzhou Bopi Enterprise Management Consulting Co., Ltd. | Shareholder of Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd. |
Directors, Supervisors, CFO and Board secretary | Key management personnel |
Shenzhen Property Management Co., Ltd. | Both controlled by the parent company |
Guoren Property and Casualty Insurance Co., Ltd. | Both controlled by the parent company |
Shenzhen Water Planning & Design Institute Co., Ltd. | Both controlled by the parent company |
Shenzhen General Institute of Architectural Design and Research Co., Ltd. | Both controlled by the parent company |
Other notes
5. Transactions with related parties
(1) Purchases/sales
Purchase of goods/receiving of services
Presented in RMB
Related party | Nature of transaction | Year ended 2023.6.30 | Approved transaction limit | Whether it exceeds the transaction limit | Year ended 2022.6.30 |
Shenzhen Water Planning & Design Institute Co., Ltd. | Design of foundation ditch for Shenfang Guangmingli project,etc. | 0.00 | No | 554,056.60 | |
Shenzhen General Institute of Architectural Design and Research Co., Ltd. | Design of Construction Engineering of Shenfang Guangmingli Project | 0.00 | No | 763,773.58 | |
Guoren Property and Casualty Insurance Co., Ltd. | Insurance Service | 80,263.00 | No | 4,134.00 | |
Shenzhen Property Management Co., Ltd. | Property Service | 352,967.09 | No | 100,579.23 | |
Shenzhen Shenfang Property | Cleaning service | 22,924.56 | No |
Cleaning Co., Ltd. | |||||
Shenzhen Property Management Co. , Ltd. Shantou branch | Property service | 1,049,250.38 | No |
Sales of goods/rendering of services
Presented in RMB
Related party | Nature of transaction | Year ended 2023.6.30 | Year ended 2022.6.30 |
Guoren Property and Casualty Insurance Co., Ltd. | Rental Service | 421,519.98 | 421,519.98 |
Shenzhen Property Management Co., Ltd. | Rental Service | 2,678,833.32 | 2,678,833.32 |
Note:
(2) Trust/contracting arrangement
Asset management/contracting undertaken by the Group on behalf of related parties
Presented in RMB
Name of related party | Name of trustee/sub-contractor | Type of assets entrusted/contracted | Inception date of trust/contracting | Maturity date of trust/contracting | Trust/contracting revenue | Trust/contracting revenue recognized in the reporting period |
Asset management / contracting undertaken by related parties on behalf of the Group
Presented in RMB
Name of trustor/main contractor | Name of related party | Type of assets entrusted/contracted | Inception date of trust/contracting | Maturity date of trust/contracting | Trust/contracting revenue | Trust/contracting revenue recognized in the reporting period |
Notes
(3) Leases
As the lessor
Presented in RMB
Lessee | Type of assets leased | Lease income recognized in the reporting period | Lease income recognized in last period |
Shenzhen Property Management Co., Ltd. | Building | 421,519.98 | 421,519.98 |
Guoren Property and Casualty Insurance Co., Ltd. | Building | 2,678,833.32 | 724,518.75 |
As the lessee
Presented in RMB
Lesser | Type of assets leased | Rental costs for simplified short-term leases and low value asset leases (if applicable) | Variable lease payments not included in the measurement of lease liabilities (if applicable) | Rent paid | Interest expense on lease liability | Increased right-of-use assets | |||||
Current amount | Amount of previous period | Current amount | Amount of previous period | Current amount | Amount of previous period | Current amount | Amount of previous period | Current amount | Amount of previous period |
Note:
(4) Guarantee
As the guarantor
Presented in RMB
Guarantee holder | Amount of guarantee | Inception date of guarantee | Maturity date of guarantee | Guarantee expired (Y/N) |
As the guarantee holder
Presented in RMB
Guarantor | Amount of guarantee | Inception date of guarantee | Maturity date of guarantee | Guarantee expired (Y/N) |
Note
(5) Funding from related party
Presented in RMB
Related party | Amount of funding | Inception date | Maturity date | Note |
Funds received | ||||
Funds provided |
(6) Transfer of assets and debt restructuring
Presented in RMB
Related party | Nature of transaction | Year ended 2023.6.30 | Year ended 2022.6.30 |
(7) Remuneration of key management personnel
Presented in RMB
Item | Year ended 2023.6.30 | Year ended 2022.6.30 |
Remuneration of key management personnel | 2,521,369.00 | 2,902,600.00 |
(8) Other related party transactions
In order to encourage the core employees of the group to share the operating results of the market-orientedprojects with the company, share the operating risks, stimulate the endogenous motivation of improvingefficiency and increasing benefits, enhance the efficiency of asset management, and realize the preservation andappreciation of the value of state-owned assets, the company has formulated the "Management Measures forInvestment From the Staff of Shenfang Group Linxi Jun Project". According to the above-mentionedmanagement measures, the related party transactions will form a joint investment with some directors,supervisors and senior executives of the company. As of 30 June 2023, the company's directors, supervisors andsenior executives had invested a total of CNY 8.95 million.
6. Receivables from and payables to related parties
(1) Receivables from related parties
Presented in RMB
Item | Related party | As at 30 June 2023 | As at 1 January 2023 | ||
Book value | Provision for bad and doubtful debts | Book value | Provision for bad and doubtful debts | ||
Accounts receivable | Shenzhen Fresh Peak property consultant Co., Ltd | 1,231,177.92 | 1,231,177.92 | 1,201,345.82 | 1,201,345.82 |
Other receivables | Guangdong Province Huizhou Luofu Hill Mineral Water Co., Ltd | 10,465,168.81 | 10,465,168.81 | 10,465,168.81 | 10,465,168.81 |
Other receivables | Shenzhen Runhua Automobile Trading Co., Ltd | 3,072,764.42 | 3,072,764.42 | 3,072,764.42 | 3,072,764.42 |
Other receivables | Canada GreatWall (Vancouver) Co., Ltd | 89,035,748.07 | 89,035,748.07 | 89,035,748.07 | 89,035,748.07 |
Other receivables | Bekaton Property Limited | 12,559,290.58 | 12,559,290.58 | 12,559,290.58 | 12,559,290.58 |
Other receivables | Paklid Limited | 19,506,273.32 | 19,506,273.32 | 18,689,545.58 | 18,870,785.54 |
Other receivables | Shenzhen Shenfang Department Store Co. Ltd | 237,648.82 | 237,648.82 | 237,648.82 | 237,648.82 |
Other receivables | Shenzhen RongHua JiDian Co., Ltd | 475,223.46 | 475,223.46 | 475,223.46 | 475,223.46 |
Other receivables | Xi’an Fresh Peak property management& Trading Co., Ltd | 8,419,205.19 | 8,419,205.19 | 8,419,205.19 | 8,419,205.19 |
Other receivables | Shenxi Limited | 7,660,529.37 | 7,660,529.37 | 7,660,529.37 | 7,660,529.37 |
Other receivables | Shenzhen Nanyang Hotel Co., Ltd. | 3,168,721.00 | 3,168,721.00 | 3,168,721.00 | 3,168,721.00 |
(2) Payables to related parties
Presented in RMB
Item | Related party | As at 30 Jun 2023 | As at 1 January 2023 |
Interest payables | Shenzhen Investment Shareholding Co. Ltd | 16,535,277.94 | 16,535,277.94 |
Accounts payable | Shenzhen Jian'an Group Co., Ltd. | 9,154,310.21 | 10,654,310.21 |
Accounts payable | Shenzhen Property Management Co. , Ltd. | 11,053,366.80 | 11,053,366.80 |
Other payables | Shenzhen Property Management Co., Ltd. | 48,908.08 | 148,908.08 |
Other payables | Shenzhen Dongfang New world store Co., Ltd | 902,974.64 | 902,974.64 |
Other payables | Guangdong Fengkai County Lianfeng Cement Manufacturing Co., Ltd. | 1,867,348.00 | 1,867,348.00 |
Other payables | Shenzhen Real Estate Electromechanical Management Company | 14,981,420.99 | 14,981,420.99 |
Other payables | Shenzhen Zhentong New Electromechanical Industry | 8,827,940.07 | 8,310,832.50 |
Other payables | Shenzhen Shenfang Department Store Co. Ltd | 639,360.38 | 639,360.38 |
Other payables | Shenzhen Longgang Henggang Huagang Industrial Co., Ltd. | 165,481.09 | 165,481.09 |
Other payables | Guangzhou Bopi Enterprise Management Consulting Co., Ltd. | 203,265,265.50 | 203,345,881.60 |
7. Related party commitment
8. Other
XIII. Share-based payment
1. The general situation of share-based payment
□ Applicable √ Not Applicable
2. Share payment settled in equity
□ Applicable √ Not Applicable
3. Cash-settled share payments
□ Applicable √ Not Applicable
4. Modification and termination of share-based payment
5. Other
XIV. Commitments and contingencies
1. Significant commitments
As at 30 June 2023, there exist significant commitments.
Capital commitments entered into but not recognized in the financial statements | 30 June 2023 | 31 December 2022 |
Material sales or purchases contracts | 321,823,819.24 | 328,654,477.52 |
As of June 30, 2023, the Group had no other commitments that should be disclosed.
2. Contingencies
(1) Significant contingencies existing on the balance sheet date
① Contingent liabilities arising from pending litigation and arbitration and their financial impact
Plaintiff | Defendant | Case | Court of Appeal | Amount involved | Progress of cases |
Xi’an Fresh Peak Holding limited company | Xi'an Commercial and Trade Commission Xi'an Commerce and Tourism Co., Ltd. | Investment compensation disputes | Shanxi Higher People’s Court | 36.62 million yuan and interest | In progress |
Xi’an Fresh Peak Holding limited company (hereinafter referred to as “Fresh Peak Company”) was Sino-foreign joint venture set up in Xi’an. Among them, Fresh Peak Enterprise Co., Ltd made 67% of the shares incash. Xi’an Trade Building, a company directly under the Xi'an Commercial and Trade Commission(hereinafter referred to as "Xi'an C&T Commission"), invested 16% of the shares in land use rights. Hong KongDadiwang Industrial Investment Company holds 17% of the shares. The core business was propertydevelopment. And the project was Xi’an Trade Building. The project was started on 28 November 1995. But theproject had been stopped in 1996 because of the two parties’ differences on the operating policy of the project.In 1997, the Xi’an government withdrew the Xi'an Fresh Peak investment project compulsively and assignedthe project to Xi’an Business Tourism Co., Ltd (hereinafter referred to as “Business Tourism Company”). Buttwo parties had insulted a lawsuit on compensation. The ShanXi Province High Peoples Court made a judgment“(2000) SJ-CZ No.25”. The judgment was as follows: 1. Business Tourism Company had to pay for thecompensation RMB 36,620 thousand to Xi’an Fresh Peak Company after the judgment entering into force. Ifthe Business Tourism Company failed to pay in time, it had to pay double debt interests to Xi’an Fresh Peak
Company. 2. Xi’an Joint Commission on Commerce had jointly and severally obligation of the interests of thecompensation.In 2004, the Shaanxi Provincial High Court auctioned off all the assets of the company in accordance with thelaw through multiple execution with the applicant receiving 15.201 million yuan in payment. Now there is noproperty available for execution for Commerce and Tourism Company. But Xi'an Municipal Bureau ofCommerce has been refusing to fulfill the judgment, and it is more difficult to continue to recover the money.The case is now in the execution stage.
As at 30 June 2023, the book value of the long-term equity investment of Xi’an Fresh Peak Company is RMB32,840,729.61. The book balance of assets was RMB 8,419,205.19. Both have been taken full provision forimpairment loss.
Plaintiff | Defendant | Case | Court of Appeal | Amount involved | Progress of cases |
Huizhou Mingxiang Economic Information Consulting Co., Ltd., Huizhou Huiyang Hongfa Industry and Trade Co., Ltd., Huizhou Jinlongsheng Industrial Co., Ltd. | Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd. | Bill dispute litigation | Huiyang District People's Court | The principal amount is CNY 177,151,400 | The verdict has been rendered in the first instance |
Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd.(hereinafter referred to as "JianbangCompany") is a subsidiary of the Group holding 51% of the shares. Because Jianbang Company wasunable to honor the commercial acceptance bill due in January 2022, with a total amount of CNY177,151,400.00, the plaintiff company filed a lawsuit against the Huiyang District People's Court for thedispute of bill payment claim. The Huiyang District Court ruled in March 2023 that Guangdong JianbangGroup (Huiyang) Industrial Co., Ltd. should pay the promissory note amount and interest in the firstinstance. Shenfang Group and Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd. are activelynegotiating a package solution with the plaintiff.
② Contingent liabilities arising from guarantee provided to other entities and related financial effects.As at 30 June 2023, the Group provides commercial housing purchaser with guarantees at 38,038.27 ((RMB inten thousand) for the following loans:
Item | Duration | Amount (In ten thousand) | Note |
Shanglinyuan | Until the Premises Permit mortgage registration is finished and in bank custody | 49.35 | |
Shenfang Cuilinyuan | Until the Premises Permit mortgage registration is finished and in bank custody | 2,148.92 | |
ChuanQi DongHu Building (Former DongHuDiJing | Until the Premises Permit mortgage registration is finished and in bank custody | 1,229.46 |
Building) | |||
TianYue Bay | Until the Premises Permit mortgage registration is finished and in bank custody | 33,640.55 | |
Linxinyuan | Until the Premises Permit mortgage registration is finished and in bank custody | 970.00 | |
Total | 38,038.27 |
③ Other contingencies(Not including contingent liabilities that are highly unlikely to result in anoutflow of economic benefits from the business)For details of contingent liabilities related to investment of joint ventures or associates, refer to Note IX.3.
(2) It is necessary to explain if the group has no material contingencies to be disclosed.There is no material contingencies to be disclosed.
3. Other
XV. Post balance sheet date events
1. Significant non-adjustment matters
Presented in RMB
Item | Contents | Influence number to the financial position and operating results | Reason of inability to estimate influence number |
2. Profit appropriations after the balance sheet date
3. Sale returns
4. Other events after the balance sheet date
XVI. Other significant items
1. Corrections of errors in prior periods
(1) Retrospective method
Presented in RMB
Details of corrections of errors | Adjustment procedure | Financial item affected in the comparable period | Cumulative amount |
(2) Prospective method
Details of correction of errors | Approval procedure | Reason for using prospective method |
2. Major debt restructuring
3. Replacement of assets
(1) Exchange of non-monetary assets
(2) Other asset replacement
4. Annuity plan
5. Termination of operation
Presented in RMB
Item | Revenue | Costs | Profit before taxation | Income tax expenses | Net profit | Profit from discontinued operations attributable to owners of the Company as the parent |
Other notes
6. Segment reporting
(1) The basis for determining the reporting segments and accounting policy
(2) Financial information of the reporting segments
Presented in RMB
Item | Offset among segment | Total |
(3) In case there is no reporting segment or the total assets and liabilities of the reporting segmentscannot be disclosed, explain the reason
(4) Other notes
7. Other significant transactions and matters that may affect investors' decision making
8. Other
XVII. Notes for main items in the parent company's financial statements
1. Accounts Receivable
(1) Accounts receivables disclosed by categories
Presented in RMB
Item | As at 30 June 2023 | As at 1 January 2023 |
Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
Amount | Proportion | Amount | Provision proportion | Amount | Proportion | Amount | Provision proportion | |||
Bad debt provisions made on an individual basis | 9,653,566.27 | 63.67% | 9,653,566.27 | 100.00% | 0.00 | 10,020,587.91 | 45.38% | 10,020,587.91 | 100.00% | |
Including: | ||||||||||
Bad debt provisions made on a combination basis | 5,509,350.65 | 36.33% | 279,538.03 | 5.07% | 5,229,812.62 | 12,059,521.38 | 54.62% | 352,843.17 | 2.93% | 11,706,678.21 |
Including: | ||||||||||
Accounts receivable from related parties in consolidated scope | 32,453.79 | 0.21% | 32,453.79 | 5,002,657.79 | 22.66% | 5,002,657.79% | 5,002,657.79 | |||
Accounts receivable from other customers | 5,476,896.86 | 36.12% | 273,844.84 | 5.00% | 5,203,052.02 | 7,056,863.59 | 31.96% | 352,843.17 | 5.00% | 6,704,020.42 |
Total | 15,162,916.92 | 100.00% | 9,933,104.30 | 65.51% | 5,229,812.62 | 22,080,109.29 | 100.00% | 10,373,431.08 | 46.98% | 11,706,678.21 |
Bad debt provisions made on an individual basis:
Presented in RMB
Item | As at 30 June 2023 | |||
Book balance | Bad debt provision | Percentage of | Reason for accrual |
provision | ||||
long-term accounts receivable from property sales | 9,677,610.54 | 9,677,610.54 | 100.00% | Expected to be uncollectable |
Total | 9,677,610.54 | 9,677,610.54 |
Bad debt provisions made on a combination basis:
Presented in RMB
Item | As at 30 June 2023 | ||
Book balance | Bad debt provision | Percentage of provision | |
Accounts receivable from related parties in consolidated scope | 32,453.79 | ||
Total | 32,453.79 |
Note to the basis for determining the combination:
Bad debt provisions made on a combination basis: receivables from other customers:
Presented in RMB
Item | As at 30 June 2023 | ||
Book balance | Bad debt provision | Percentage of provision | |
Accounts receivable from other customers | 5,476,896.86 | 279,538.03 | 5.10% |
Total | 5,476,896.86 | 279,538.03 |
Note to the basis for determining the combination:
Please refer to the way of disclosing other receivables’ bad debt provision to disclose relevant information, ifthe group choose to use general model of expected credit losses to accrue bad debts of accounts receivable.
□ Applicable √ Not Applicable
Disclosed by aging
Presented in RMB
Aging | As at 30 June 2023 |
Within 1 year (with 1 year inclusive) | 5,509,350.65 |
Above 3 year | 9,653,566.27 |
Above 5 year | 9,653,566.27 |
Total | 15,162,916.92 |
(2) Additions, recoveries or reversals of provision for the current period
Provision for the current period:
Presented in RMB
Types | As at 1 January 2023 | Amount changes in current period | As at 30 June 2023 | |||
Provision | Recoveries or reversals | Written-off | Others |
Including: significant recoveries or reversals of bad debt provisions in the current period are as follows:
Presented in RMB
Name of the entity | Recoveries or reversals amount | Recovery manner |
(3) Actual write-off of accounts receivable in the current
Presented in RMB
Item | Written-off amount |
Including the significant write-offs of accounts receivable are as follows:
Presented in RMB
Name of the entity | Nature of accounts receivable | Written-off amount | Reason written-off | Approval procedures performed | Accounts receivable arising from related party transactions(Y/N) |
Notes:
(4) The top five units with the ending balance of accounts receivable collected by the debtor
Presented in RMB
Name of the entity | Accounts receivable The ending balance | % of the total closing balance of accounts receivable | Bad debt provision The ending balance |
(5) Accounts receivable terminated due to the transfer of financial assets
(6) Transfer of accounts receivable and continue to involve the amount of assets and liabilities formedOther notes:
2. Other receivables
Presented in RMB
Item | As at 30 June 2023 | As at 1 January 2023 |
Dividends receivable | 34,222,722.88 | 39,222,722.88 |
Other receivables | 1,702,132,747.86 | 1,672,657,609.57 |
Total | 1,736,355,470.74 | 1,711,880,332.45 |
(1) Interest receivable
1) Classification of interest receivable
Presented in RMB
Item | As at 30 June 2023 | As at 1 January 2023 |
2) Significant overdue interest
Presented in RMB
Borrowing unit | The ending balance | Overdue time (month) | Overdue reason | Whether impairment occurs and the basis for judgment |
Other notes:
3) Bad Debt Provisions
□ Applicable √ Not Applicable
(2) Dividends receivable
1) Dividends receivable classification
Presented in RMB
Items (or invested units) | As at 30 June 2023 | As at 1 January 2023 |
Shenzhen City SPG Long Gang Development Ltd. | 34,222,722.88 | 39,222,722.88 |
Total | 34,222,722.88 | 39,222,722.88 |
2) Significant dividends receivable overdue more than one year are as follows:
Presented in RMB
Items (or invested units) | As at 30 June 2023 | Aging | Reasons for not recovered | Whether impairment occurs and the basis for judgment |
3) Bad Debt Provisions
□ Applicable √ Not Applicable
Other notes:
(3) Other receivables
1) Other receivables disclosure by nature
Presented in RMB
Item | Book balance as at 30 June 2023 | Book balance as at 1 January 2023 |
Other receivables from the collecting and paying on behalf | 81,000.00 | 61,133.60 |
Other receivables from other customers | 5,380,433.19 | 7,106,322.88 |
Other receivables from related parties | 137,686,536.98 | 137,686,536.98 |
Other receivables in consolidated scope | 2,363,782,867.02 | 2,328,975,282.16 |
Total | 2,506,930,837.19 | 2,473,829,275.62 |
2) Bad Debt Provision
Presented in RMB
Bad Debt Provision | first stage | Second stage | Third stage | Total |
To 12-month expected credit loss | To 12-month expected credit loss (no credit impairment) | To lifetime expected credit loss (has occurred credit impairment) | ||
Balance as at 1 January 2023 | 178,826.36 | 659,978,808.23 | 141,014,031.46 | 801,171,666.05 |
Balance as at 1 January 2023 in current period | ||||
Current roll-back | -8,000.00 | -8,000.00 | ||
Other movements | 3,634,423.28 | 3,634,423.28 | ||
Balance as at 30 June 2023 | 170,826.36 | 663,613,231.51 | 141,014,031.46 | 804,798,089.33 |
Changes in the book balance with significant changes in the loss provision for the current period:
Applicable √ Not Applicable
Disclosure by aging
Presented in RMB
Aging | As at 30 June 2023 |
Within 1 year (include 1 year) | 664,588,609.32 |
1 to 2 years | 400.00 |
2 to 3 years | 209,903,457.31 |
Over 3 years | 1,632,438,370.56 |
3 to 4 years | 78,698,092.26 |
Over 5 years | 1,553,740,278.30 |
Total | 2,506,930,837.19 |
3) Additions, recoveries or reversals of provision for the current periodProvision for bad debts in the current period:
Presented in RMB
Types | As at 1 January 2023 | Amount changes in current period | As at 30 June 2023 | |||
Additions | Recoveries or reversals | Written-off | Others | |||
Other receivables bad debt provision | 801,171,666.05 | -8,000.00 | 3,634,423.28 | 804,798,089.33 | ||
Total | 801,171,666.05 | -8,000.00 | 3,634,423.28 | 804,798,089.33 |
Including significant recoveries or reversals of bad debt provisions in the current period are as follows:
Presented in RMB
Name of the entity | Amount of recoveries or reversals | Recovery manner |
4) Other receivables actually written off in the current period
Presented in RMB
Item | Amount of written-off |
Including significant accounts receivable written-off situation is as follows:
Presented in RMB
Name of the entity | Nature of other receivable | Amount of written-off | Reason | Verification and cancellation procedures to be performed | Whether the payment is generated by an affiliate transaction |
Notes:
5) The top five units of ending balance of other receivables
Presented in RMB
Name of the entity | Nature of other receivables | Ending balance of other receivables | Aging | Proportion of total ending balance of other receivables (%) | Ending balance of bad debt provision |
Shantou Huafeng Estate Development Co., Ltd | Receivable from Subsidiary | 756,160,642.87 | 1-3 years.. over 3 years | 30.16% | |
Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd. | Receivable from Subsidiary | 782,131,884.73 | Within 3 years | 31.20% | |
Fresh Peak Enterprise Co., Ltd | Receivable from Subsidiary | 528,148,362.01 | Within 2 years, over five years | 21.07% | 508,377,320.74 |
American Great Wall Co., Ltd | Receivable from Subsidiary | 106,865,680.98 | Over five years | 4.26% | 103,231,257.70 |
Fresh Peak Zhiye Co., Ltd. | Receivable from Subsidiary | 91,208,173.59 | Over five years | 3.64% | |
Total | 2,264,514,744.18 | 90.33% | 611,608,578.44 |
6) Government subsidies receivable
Presented in RMB
Name of the organization | Name of government subsidy item | The ending balance | Aging | Estimated time, amount and basis of collection |
7) Other receivables terminated due to the transfer of financial assets8) Amount of assets and liabilities formed by transferring other receivables and continuing to involvethemOther notes:
3. Long-term equity investments
Presented in RMB
Item | As at 30 June 2023 | As at 1 January 2023 | ||||
Book balance | Impairment reserve | Book value | Book balance | Impairment reserve | Book value | |
Investment in subsidiaries | 1,716,020,833.00 | 133,839,271.15 | 1,582,181,561.85 | 1,716,020,833.00 | 133,839,271.15 | 1,582,181,561.85 |
Investment in associates and joint ventures | 12,071,773.22 | 11,977,845.58 | 93,927.64 | 12,071,773.22 | 11,977,845.58 | 93,927.64 |
Total | 1,728,092,606.22 | 145,817,116.73 | 1,582,275,489.49 | 1,728,092,606.22 | 145,817,116.73 | 1,582,275,489.49 |
(1) Investment in subsidiaries
Presented in RMB
Name of investee | As at 1 January 2023 (book value) | Increase/ Decrease (+ / -) in current period | As at 30 June 2023 (book value) | provision for impairment as at 30 June 2023 | |||
Additional investment | Decrease of investment | Provision for impairment | Other | ||||
Shenzhen Petrel Hotel Co. Ltd. | 20,605,047.50 | 20,605,047.50 | |||||
Shenzhen City Shenfang Investment Ltd. | 9,000,000.00 | 9,000,000.00 | |||||
Fresh Peak Enterprise Ltd. | 556,500.00 | 556,500.00 | |||||
Fresh Peak Zhiye Co., Ltd. | 22,717,697.73 | 22,717,697.73 | |||||
Shenzhen Zhen Tung Engineerin | 11,332,321.45 | 11,332,321.45 |
g Ltd | |||||||
American Great Wall Co., Ltd | 1,435,802.00 | 1,435,802.00 | |||||
Shenzhen City Shenfang Free Trade Trading Ltd. | 4,750,000.00 | 4,750,000.00 | |||||
Shenzhen Huazhan Construction Supervision Co., Ltd. | 6,000,000.00 | 6,000,000.00 | |||||
Beijing Shenfang Property Management Co., Ltd. | 0.00 | 0.00 | 500,000.00 | ||||
Shenzhen Lain Hua Industry and Trading Co., Ltd. | 13,458,217.05 | 13,458,217.05 | |||||
Shenzhen City SPG Long Gang Development Ltd. | 30,850,000.00 | 30,850,000.00 | |||||
Beijing Fresh Peak Property Development Management Limited Company | 0.00 | 0.00 | 64,183,888.90 | ||||
Shantou City Huafeng Real Estate Development Co., Ltd | 16,467,021.02 | 16,467,021.02 | |||||
Paklid Limited | 0.00 | 0.00 | 201,100.00 | ||||
Bekaton Property Limited | 0.00 | 0.00 | 906,630.00 | ||||
Shenzhen Shenfang Department Store Co. | 0.00 | 0.00 | 9,500,000.00 |
Ltd. | |||||||
Shantou Fresh Peak Building | 0.00 | 0.00 | 58,547,652.25 | ||||
Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd. | 450,000,000.00 | 450,000,000.00 | |||||
Shenzhen Shenfang Chuanqi Real Estate Development Co., Ltd. | 995,000,000.00 | 995,000,000.00 | |||||
Wellam Co., Ltd. | 8,955.10 | 8,955.10 | |||||
Total | 1,582,181,561.85 | 1,582,181,561.85 | 133,839,271.15 |
(2) Investment in associates and joint ventures
Presented in RMB
Investees | Opening balance (book value) | Increase/ Decrease (+ / -) in the Jan to Jun 2023 | Ending balance (book value) | Ending balance of the provision for impairment | |||||||
Additional investment | Decrease of investment | Income from Equity investment recognized under equity method | Other comprehensive Income adjustment | Other equity movement | Announced for distributing cash dividend or profit | Provision for impairment | Others | ||||
I. Joint Venture | |||||||||||
Fengkai Xinghua Hotel | 9,455,465.38 | ||||||||||
Subtotal | 9,455,465.38 | ||||||||||
II. Associates | |||||||||||
Shenzhen Ronghua Jidian Co., | 93,927.64 | 93,927.64 | 1,076,954.64 |
Ltd | |||||||||||
Shenzhen Runhua Automobile Trading Co., Ltd | 0.00 | 1,445,425.56 | |||||||||
Subtotal | 93,927.64 | 93,927.64 | 2,522,380.20 | ||||||||
Total | 93,927.64 | 93,927.64 | 11,977,845.58 |
(3) Other notes
4. Operation Income and Costs
Presented in RMB
Items | Jan to Jun 2023 | Jan to Jun 2022 | ||
Income | Costs | Income | Costs | |
Principal business | 45,457,639.46 | 14,351,721.51 | 160,962,949.24 | 48,054,643.10 |
Other businesses | 354,014.90 | 6,035.31 | ||
Total | 45,811,654.36 | 14,351,721.51 | 160,968,984.55 | 48,054,643.10 |
Revenue related information:
Information related to performance obligations:
There are four criteria need to be satisfied when the group recognizing the revenue from property sales:
(1) the sale contract has been signed and filed with the land department; (2) the property development iscompleted and pass the acceptance; (3) For Lump-sum payment, revenue is recognized by the group when theconsideration is fully received. For instalment payment, revenue is recognized when the first installment hasbeen received and the bank mortgage approval procedures have been completed. (4) completed the proceduresfor entering the partnership in accordance with the requirements stipulated in sale contract.Information related to the transaction price allocated to the remaining performance obligations:
At the end of the reporting period, the amount of revenue corresponding to the performance obligations thathave been signed but not yet performed or not yet completed is RMB 127,778,556.13 yuan, Among them,RMB29,610,712.32 yuan is expected to be recognized as revenue in 2023, RMB 46,182,244.76 is expected tobe recognized as revenue in the year 2024, and RMB 32,218,840.95 yuan is expected to be recognized asrevenue in the year 2025.Other notes:
5. Investment income
Presented in RMB
Item | Jan to Jun 2023 | Jan to Jun 2022 |
Investment income from disposal of financial assets held for trading | 174,021,073.48 | |
Gains on residual equity remeasured at fair value after losing control power | 161,491.79 | 159,619.01 |
Interest arising from debt obligation investments during the holding period | 813,960.00 | |
Other | 1,644,822.69 | |
Total | 1,806,314.48 | 174,994,652.49 |
6. Other
XVIII. Supplementary Information
1. Statement of non-recurring gains and losses for the current period
√ Applicable □ Not Applicable
Presented in RMB
Item | Amount | Note |
Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) | 3,750.50 | |
Government subsidies in the current profit and loss(except the part that are closely related to the company's normal business operations, comply with national policies and regulations, and will continuously enjoyed with a fixed or quantitative manner according to certain standards) | 123,732.31 | Government grants received |
Gain or loss on assets entrusted to other entities for investment or management | 3,638,607.35 | Changes in fair value and investment income arising from investment in monetary funds |
Gain/Loss incurred from contingency unrelated to the Company’s normal operating businesses. | 1,644,822.69 | |
Non-operating income/(expenses) except the above | -37,754.41 | |
Less: Amount affected by the income tax | 22,432.10 | |
Total | 5,350,726.34 | -- |
Details of other profit and loss items that meet the definition of non recurring gain and loss:
□Applicable √ Not Applicable
Details of the company does not have other profit and loss items that meet the definition of non recurring profitand loss.
Description of defining the non recurring profit and loss items listed in ‘Explanatory Announcement No. 1 oninformation disclosure of companies offering securities to the public - non recurring profits and losses’ asrecurring profit and loss items.
□Applicable √ Not Applicable
2. Return on equity and earnings per share
Profit in reporting period | Basic earnings per share | Basic earnings per share | |
Basic earnings per share | Diluted earnings per share | ||
Net income attributable to the common shareholders of the Group | -0.94% | -0.0367 | -0.0367 |
Net profit attributable to common shareholders of a company after deducting non-recurring gains and losses | -1.07% | -0.0420 | -0.0420 |
3. Differences in accounting data under domestic and foreign accounting standards
(1) The difference between net profit and net assets in the financial report disclosed in accordancewith International Accounting Standards and Chinese Accounting Standards
□ Applicable √ Not Applicable
Presented in RMB
Net profit | Net assets | |||
Current amount | Amount of previous period | Ending balance | Opening balance | |
According to the accounting standards for Chinese enterprises | -37,118,182.81 | 145,128,330.14 | 3,903,638,382.72 | 4,004,240,547.70 |
Items and Amount Adjusted according to International Accounting Standards: | ||||
According to the international accounting standards | -37,118,182.81 | 145,128,330.14 | 3,903,638,382.72 | 4,004,240,547.70 |
(2) The difference between net profit and net asset in the financial report disclosed in accordance withInternational accounting standards for overseas enterprises and Chinese accounting standards forenterprises
□ Applicable √ Not Applicable
(3) Note to the discrepancy in accounting data under the accounting standards outside MainlandChina. In case the discrepancy in data which have been audited by an overseas auditing agent has beenadjusted, please specify the name of the overseas auditing agent.Not Applicable
4. Other