SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE
& PROPERTIES (GROUP) CO., LTD.
INTERIM REPORT 2021
2021-031
August 2021
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.Liu Zhengyu, chairman of the Company’s Board, Zhao Zhongliang, the Company’s ChiefFinancial Officer, and Qiao Yanjun, 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 arereminded to exercise caution when making investment decisions.The Company is subject to the Guideline No. 3 of the Shenzhen Stock Exchange onInformation Disclosure by Industry—for Listed Companies Engaging in Real Estate.Risks facing the Company have been explained in detail in “X Risks Facing the Company andCountermeasures” in “Part III Management Discussion and Analysis” herein.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 ...... 23
Part V Environmental and Social Responsibility ...... 25
Part VI Significant Events ...... 26
Part VII Share Changes and Shareholder Information ...... 33
Part VIII Preferred Shares ...... 38
Part IX Bonds ...... 39
Part X Financial Statements ...... 40
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. |
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 | Liu Zhengyu | ||
II Contact Information
| Board Secretary | Securities Representative | |
| Name | Luo Yi | Hong Lu |
| Address | 47/F, SPG Plaza, Renmin South Road, Shenzhen, Guangdong, P.R.China | 47/F, SPG Plaza, Renmin South Road, Shenzhen, Guangdong, P.R.China |
| Tel. | （86 755）82293000-4715 | （86 755）82293000-4712 |
| Fax | （86 755）82294024 | （86 755）82294024 |
| Email address | spg@163.net | spg@163.net |
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 andemail address 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 2020 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’s
periodic reports in the Reporting Period.
□ Applicable √ Not applicable
The newspapers designated by the Company for information disclosure, the website designated by the CSRC for disclosing theCompany’s periodic reports and the place for keeping such reports did not change in the Reporting Period. The said information canbe found in the 2020 Annual Report.IV Key Financial InformationIndicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
| H1 2021 | H1 2020 | Change (%) | |
| Operating revenue (RMB) | 694,598,218.47 | 596,258,495.40 | 16.49% |
| Net profit attributable to the listed company’s shareholders (RMB) | 132,447,122.14 | 97,274,985.72 | 36.16% |
| Net profit attributable to the listed company’s shareholders before exceptional gains and losses (RMB) | 131,437,988.58 | 85,184,270.99 | 54.30% |
| Net cash generated from/used in operating activities (RMB) | -285,540,751.46 | -212,242,798.59 | -34.53% |
| Basic earnings per share (RMB/share) | 0.1309 | 0.0962 | 36.07% |
| Diluted earnings per share (RMB/share) | 0.1309 | 0.0962 | 36.07% |
| Weighted average return on equity (%) | 3.47% | 2.68% | 0.79% |
| 30 June 2021 | 31 December 2020 | Change (%) | |
| Total assets (RMB) | 6,204,351,775.64 | 4,936,916,746.74 | 25.67% |
| Equity attributable to the listed company’s shareholders (RMB) | 3,843,098,587.64 | 3,797,512,488.22 | 1.20% |
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 2021 | H1 2020 | Ending amount | Beginning amount | |
| Under CAS | 132,447,122.14 | 97,274,985.72 | 3,843,098,587.64 | 3,797,512,488.22 |
| Adjusted as per IFRS | ||||
| Under IFRS | 132,447,122.14 | 97,274,985.72 | 3,843,098,587.64 | 3,797,512,488.22 |
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 |
| Non-operating income and expense other than the above | 1,345,511.41 | |
| Less: Income tax effects | 336,377.85 | |
| Total | 1,009,133.56 | -- |
Explanation of why the Company classifies a gain/loss item as exceptional according to the definition in the ExplanatoryAnnouncement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/LossItems, or reclassifies any exceptional item listed in the said explanatory announcement as recurrent:
□ 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 development in the Reporting PeriodIn the Reporting Period, domestic economy continued to recover steadily, and registered a stable performancewith good momentum for reinforcement and growth. In order to achieve the central government's target ofstabilizing land and housing prices as well as market expectations, real estate regulators have successfullyimplemented a series of policies, including "three red lines", real estate loan concentration managementmechanism in 2020 and "concentrated supply of land" in the first half of 2021. These policies resulted in asignificant difference between different cities and different districts in the same city and an overall stable and slowtrend in nationwide real estate market.(II) Operating performance of the Company in the Reporting Period
1. Steadily advancing of key tasks
(1) Achievements in real estate sales target. The Company strengthened project promotion and customerdevelopment through multiple channels, and accelerated the pace of destocking. In the first half of this year,incremental contracted sales reached 70.2% of the annual target, exceeding the scheduled plan.
(2) Smoothly advanced project construction. In Shenzhen, the Company completed the construction of municipalroad monitoring work for Longgang Project in March, and achieved completion acceptance in April; in Shantou,the Company completed the completion acceptance for Tianyuewan Phase II at the end of June; in Huizhou, theCompany has recovered the construction for Linxijun Project since the end of June.
(3) Breakthrough in project expansion. In the Reporting Period, the Company successfully acquired 51% ofJianbang Group's equity shares, laying a good foundation for the sustainable development of the main business. Atpresent, the transaction transfer and registration change have been completed.
(4) Improving asset quality and efficiency. First, the Company completed resource asset system inventory, whichhas laid a foundation for subsequent asset revitalization and efficiency improvement; second, it continued topromote the revitalization of inefficient assets, and strived to reduce the loss of hotel rooms; third, it activelyexpanded the renting, and the occupancy rate of SPG Plaza has increased significantly; fourth, it further plannedthe integration of business sectors and optimize the asset structure layout.
(5) Stable and orderly safe production. First, the Company implemented safe production accountability level bylevel, and strengthened safety hazard investigation and treatment; second, it strictly implemented pandemicprevention and control requirements, and performed prevention and control against the pandemic and recovery ofproduction; third, it properly handled all kinds of complaint petitions as well as events affecting social stability, tocreate a good atmosphere for celebrating "The 100th Anniversary of the Founding of CPC". In the first half of thisyear, the Company's safe production, pandemic prevention and control, and complaint petitions as well as eventsaffecting social stability kept stable.
2. Continuous improvement of corporate management
(1) Improvement in efficiency of financial management. First, the Company completed the distribution of profitsfor 2020, achieving normal cash dividend for three consecutive fiscal years; it attained financial benefits throughagreed deposits and other means, fully improving the use efficiency of idle funds.
(2) Pay close attention to the implementation of cost control. The Company strictly implemented full cost, wholeprocess, and penetration management, and paid close attention to the budget and final accounting of majorprojects, achieving good results in cost control.
(3) Significant improvement in lease management. The Company promoted lease property through multiplechannels and tried its best to "retain existing customers and develop new customers". In the Reporting Period, theCompany's cumulative lease revenue increased by 64.6% year-on-year, accounting for 51.2% of the annual target.
(4) Human resource management innovation. First, the Company has explored the establishment of a soundincentive/constraint mechanism, and introduced employee investment mechanism in Linxijun Project, allowingemployees to share the profit of market-based project operations and management, so as to stimulate employees'enthusiasm and creativity; second, it completed the selection of some middle-level management personnel,providing new vitality and power for the Company's development; third, it carried out work for full coverage ofspecial review of personnel files, promoting human resources optimization and sustainable development.
3. Clean and righteous corporate culture
(1) Pragmatic approach in Party building. Always adhering to the leadership role of the Party building, theCompany actively organized "Three Sessions and One Class", "First Topics" learning, themed Party day, specialParty class and other activities, and integrated the education of the Party history into everyday life, consolidatingthe belief of the Party members and cadres.
(2) The development of clean and honest Party conduct was further deepened. The Company has drafted the list ofkey tasks for development of clean and honest Party conduct and anti-corruption work, as well as key points ofannual supervision. Besides, the Company signed 2021 responsibility letters regarding such development,promoting comprehensive and strict administration of the Party to be implemented at the grassroots level. TheCompany also convened special meetings of supervision system and conducted special investigation, effectivelystrengthening political supervision and purifying political ecology.
(3) Agglomerate mental efforts through corporate culture development. The Company organized football, tennis,badminton, table tennis, yoga and other interest group and sports activities, enriching employees' lifestyle afterwork. The Company successfully held the "SPG Cup" Table Tennis Invitational Competition, carried out the"Zouhongqiao" outdoor activities and "Employee Collective Birthday Party", creating a sound environment wherethe Company builds platforms and the employees participate, enhancing corporate cohesiveness.The Company is subject to the Guideline No. 3 of the Shenzhen Stock Exchange on Information Disclosure by Industry—for ListedCompanies Engaging in Real Estate.New additions to the land bank:
| Name of land lot or project | Location | Planned use of land | Site area（㎡） | Floor area with plot ratio （㎡） | How the land is obtained | The Company’s interest | Total land price (RMB’0,000) | Consideration of the Company’s interest (RMB’0,000) |
| Linxinyuan (the Linxijun project) | Changbu Village, Xinxu Town, Huiyang District, Huizhou City, Guangdong Province | Commercial and residential | 198,676.60 | 397,353.20 | Acquisition | 51.00% | 60,667 | 45,000 |
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) |
| Shantou | Tianyuewan Phase II | Chaoyang District | Completed | 100.00% | 1 October 2018 | 95% | 100.00% | 33,362 | 127,770 | 127,770 | 127,770 | 65,485 | 55,524 |
| Huizhou | Linxinyuan Phase I | Huiyang | Framework in construction | 51.00% | 11 June 2021 | 30% | 30.00% | 64,278 | 159,761 | 0 | 0 | 115,750 | 27,750 |
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 | 31,973 | 6,694 | 45,140 | 25,701 | 7,596 | 47,714 |
| Shenzhen | Cuilinyuan | Longgang District | Ready for sale | 100.00% | 60,111 | 56,137 | 52,048 | 114 | 372 | 51,969 | 338 | 1,148 |
| Shantou | Tianyuewan Phase I | Chaoyang District | Ready for sale | 100.00% | 153,470 | 160,372 | 106,440 | 8,829 | 4,770 | 95,822 | 7,350 | 3,883 |
| Shantou | Tianyuewan Phase II | Chaoyang District | On pre-sale | 100.00% | 127,770 | 137,059 | 9,819 | 8,584 | 5,113 | 0 |
Rental status of major projects:
| Name of project | Location | Use | The Company’s interest | Rentable area （㎡） | Cumulative rented area （㎡） | Average occupancy rate |
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 | |||
Development strategy and operating plan for the coming year:
As comes the second half of 2021, the global pandemic continues to evolve. Therefore, the internationalenvironment becomes more complicated and challenging, and domestic economic recovery remains unstable anduneven. The government upholds the principle that “housing is for living in, not for speculation”, encourages bothhousing purchase and renting, and implements city-specific policies to promote the steady and healthydevelopment of the real estate market. As the real estate enterprises have gradually shifted their developmentgoals from “quantity first” to “quality first”, the industry is expected to become more concentrated and face newchanges.The Company will resolutely implement the decisions and deployment of the CPC Shenzhen MunicipalCommittee, Shenzhen Municipal People's Government, State-owned Assets Supervision and ManagementCommission of Shenzhen Municipal People's Government, and Shenzhen Investment Holdings Co., Ltd. The“Dual Zone” construction in Shenzhen and the policy of deepening the reform of state-owned assets andenterprises have brought strategic opportunities for the Company to plan for projects reserves, stabilize operationand management, innovate the profit model, and open up growth areas to get off to a good start in the 14thFive-Year Plan period.(I) Adhere to two-wheel drive for further optimization of business layout. First, the Company will intensify effortsto research real estate policies and work on land development surveys and land reserves to continually improveperformance indicators and strengthen the foundation for high-quality development. Second, the Company willfoster new growth drivers to increase profits.(II) Focus on operation to increase competitiveness. First, the Company will promote project construction andmarketing to fulfill the annual mandates. Second, the Company will pay close attention to property leasing toensure the accomplishment of annual goals. Third, the company will step up to increase quality and efficiency forassets that have been ineffectively operated and clear out zombie companies. Both actions will strive forsubstantial results.(III) Make sound overall planning to conduct major works in an orderly fashion. Taking major tasks that influenceand drive the overall as its main direction and focusing on implementation and effects, the Company willcoordinately advance such major tasks to ensure full completion of annual goals.(IV) Strengthen the foundation and work on Party building and a fine Party culture. The 100th anniversary of thefounding of the Party is an opportunity. Playing a leadership role, the Party organization will set the right direction,keep in mind the big picture, ensure the implementation of Party policies and principles, and mobilize and give
full play to the exemplary and vanguard role of Party members. Also, it will be strict in Party discipline, firmlypromote a fine Party culture and a corruption-free environment, and implement the “Two Responsibilities” in theprocess. The Company will take a two-pronged approach on both Party building and business operation,integrating Party leadership into corporate governance to lead to high-quality development of the Company.(V) Make unremitting efforts on production safety, epidemic prevention and control and stability maintenance ofpetitioning. First, the Company will regularly improve the mechanism of production safety management byimplementing the accountability system for production safety, intensifying efforts on checking potential safetyhazards, and enhancing safety governance in major areas. Such actions will help maintain a stable productionsafety, creating sound conditions to achieve annual business objectives. Second, the Company will adhere toregular pandemic prevention and control with targeted measures and promote vaccination for all the staff,ensuring that all duties are performed, and measures are elaborated to guarantee a steady situation of pandemicprevention and control. Third, the Company will coordinately focus on stability maintenance of petitioning andpublic opinion monitoring to create a harmonious and stable environment for business development.Provision of guarantees for homebuyers on bank mortgages:
√ Applicable □ Not applicable
| Project | Guarantee period | Guarantee amount (RMB’0,000) | Note |
| Cuilinyuan | Until the property ownership certificate is registered as collateral and handed over to bank for keeping | 4,238.32 |
| Chuanqi Donghu Mingyuan | Until the property ownership certificate is registered as collateral and handed over to bank for keeping | 4,550.44 | |
| Tianyuewan | Until the property ownership certificate is registered as collateral and handed over to bank for keeping | 29,270.98 |
| Total | 38,059.74 |
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
II Core Competitiveness AnalysisAs a pioneer of real estate development enterprises in Shenzhen, the Company has created a number of "firstplaces" in the history of real estate development in China. For example, the first to use the paid state-owned land,the first to introduce the foreign investment for the cooperative land development, the first to raise developmentfunds by means of pre-sale of buildings, the first to carry out public bidding for construction projects inaccordance with international practices, the first to set up a property management company to the buildings andresidences developed in an all-rounded manner, the first to win the bid in the auction of land use rights held in the
Shenzhen Special Economic Zone, etc.Over the past 40 years, the company has developed more than 100 high-rise buildings, 500 multi-storey residentialbuildings, and 400 garden villas, with a cumulative building area of more than 4 million square meters. It has paidgreat efforts to the establishment of a modern enterprise HR management system and works hard in building aprofessional and high-quality development team. It also keeps improving the management mechanism andprocesses for project development. As a result, its planning, construction, cost control, sales ability and brandimage have been effectively improved. More importantly, its main business operation ability and corecompetitiveness have been greatly enhanced.III Core Business AnalysisSee 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 2021 | H1 2020 | Change (%) | Main reason for change | |
| Operating revenue | 694,598,218.47 | 596,258,495.40 | 16.49% | |
| Cost of sales | 331,975,678.55 | 343,908,087.46 | -3.47% | |
| Selling expense | 16,815,600.06 | 8,536,448.38 | 96.99% | Sales halt in H1 2020 caused by the pandemic |
| Administrative expense | 40,299,584.22 | 40,253,977.26 | 0.11% | |
| Finance costs | -16,414,487.59 | -5,747,585.98 | -185.59% | Notice on increase in deposit interest in the Reporting Period |
| Income tax expense | 47,841,099.11 | 43,599,689.97 | 9.73% | |
| Net cash generated from/used in operating activities | -285,540,751.46 | -212,242,798.59 | -34.53% | Payment for land by project company in the Reporting Period |
| Net cash generated from/used in investing activities | -1,750,516,694.28 | 1,020,263,040.32 | -271.58% | Payment for share acquisition and purchase of monetary fund in the Reporting Period |
| Net cash generated from/used in financing activities | 243,164,282.22 | -166,923,900.00 | 245.67% | Receiving borrowings from shareholders by project company |
| Net increase in cash and cash equivalents | -1,792,911,046.07 | 641,032,673.52 | -379.69% | Payment for share acquisition and purchase of monetary fund in the |
Major changes in the profit structure or sources of the Company in the Reporting Period:
□ Applicable √ Not applicable
No such cases in the Reporting Period.Breakdown of operating revenue:
Unit: RMB
Reporting Period
| H1 2021 | H1 2020 | Change (%) | |||
| Operating revenue | As % of total operating revenue (%) | Operating revenue | As % of total operating revenue (%) | ||
| Total | 694,598,218.47 | 100% | 596,258,495.40 | 100% | 16.49% |
| By business segment | |||||
| Real estate | 479,956,940.17 | 69.10% | 382,458,149.70 | 64.14% | 25.49% |
| Construction service | 107,167,710.21 | 15.43% | 124,548,909.59 | 20.89% | -13.96% |
| Rental service | 30,225,726.14 | 4.35% | 21,780,551.36 | 3.65% | 38.77% |
| Property management service | 70,348,672.05 | 10.13% | 63,715,063.94 | 10.69% | 10.41% |
| Other | 6,899,169.90 | 0.99% | 3,755,820.81 | 0.63% | 83.69% |
| By product | |||||
| Housing units | 479,562,902.07 | 69.04% | 381,862,911.60 | 64.04% | 25.59% |
| Shops and parking place | 394,038.10 | 0.06% | 595,238.10 | 0.10% | -33.80% |
| Other | 214,641,278.30 | 30.90% | 213,800,345.70 | 35.86% | 0.39% |
| By geographic segment | |||||
| Guangdong Province | 635,008,108.14 | 91.42% | 546,573,961.29 | 91.67% | 16.18% |
| Other regions in China | 59,300,114.59 | 8.54% | 49,542,269.40 | 8.31% | 19.70% |
| Overseas | 289,995.74 | 0.04% | 142,264.71 | 0.02% | 103.84% |
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 business segment | ||||||
| Real estate | 479,956,940.17 | 137,669,876.19 | 71.32% | 25.49% | -0.24% | 7.40% |
| Construction | 107,167,710.21 | 104,546,845.37 | 2.45% | -13.96% | -14.43% | 0.55% |
| service | ||||||
| Rental service | 30,225,726.14 | 17,487,210.75 | 42.14% | 38.77% | 2.38% | 20.57% |
| Property management service | 70,348,672.05 | 68,110,422.82 | 3.18% | 10.41% | 10.00% | 0.36% |
| Other | 6,899,169.90 | 4,161,323.42 | 39.68% | 83.69% | -45.59% | 143.31% |
| By product | ||||||
| Housing units | 479,562,902.07 | 137,432,957.73 | 71.34% | 25.59% | -0.24% | 7.42% |
| Shops and parking place | 394,038.10 | 236,918.46 | 39.87% | -33.80% | -0.32% | -20.20% |
| Other | 214,641,278.30 | 194,305,802.36 | 9.47% | 0.39% | -5.63% | 5.78% |
| By geographic segment | ||||||
| Guangdong Province | 635,008,108.14 | 272,780,664.52 | 57.04% | 16.18% | -7.52% | 11.01% |
| Other regions in China | 59,300,114.59 | 59,195,014.03 | 0.18% | 19.70% | 20.90% | -1.00% |
| Overseas | 289,995.74 | 100.00% | 103.84% | 0.00% | ||
Main business data of the most recent period restated according to changed statistical caliber for the Reporting period
□ Applicable √ Not applicable
Any over 30% YoY movements in the data above and why:
□ Applicable √ Not applicable
IV Non-Core Business Analysis
□ Applicable √ Not applicable
IV Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
| End of Reporting Period | End of the same period of last year | Increase/decrease in proportion | Notes to significant changes | |||
| Amount | Proportion to total assets | Amount | Proportion to total assets | |||
| Monetary assets | 882,306,006.32 | 14.22% | 2,687,465,070.01 | 54.44% | -40.22% | Caused by purchase of monetary fund |
| Accounts receivable | 74,309,539.94 | 1.20% | 59,590,944.06 | 1.21% | -0.01% | |
| Inventories | 2,974,957,505.77 | 47.95% | 1,220,464,112.56 | 24.72% | 23.23% | Caused by acquisition of project company |
| Investment property | 603,353,638.54 | 9.72% | 616,365,621.53 | 12.48% | -2.76% | |
| Long-term equity investments | 377,489.65 | 0.01% | 377,489.65 | 0.01% | 0.00% | |
| Fixed assets | 26,885,430.32 | 0.43% | 28,039,978.43 | 0.57% | -0.14% | |
| Short-term borrowings | 70,773,140.58 | 1.14% | 76,893,995.94 | 1.56% | -0.42% | |
| Contract liabilities | 375,038,081.55 | 6.04% | 196,786,977.19 | 3.99% | 2.05% | Caused by acquisition of project company |
| Accounts payable | 99,752,685.51 | 1.61% | 176,926,614.28 | 3.58% | -1.97% | |
| Taxes payable | 498,393,009.62 | 8.03% | 459,709,646.95 | 9.31% | -1.28% | |
| Other payables | 582,192,504.40 | 9.38% | 277,105,129.74 | 5.61% | 3.77% | Caused by borrowings provided by shareholders of project company |
2. Major Assets Overseas
□ Applicable √ Not applicable
3. Assets and Liabilities at Fair Value
□ Applicable √ Not applicable
4. Restricted Asset Rights as at the Period-End
| Item | Ending carrying value | Reasons |
| Discount of notes receivable | 7,818,054.79 | Endorsement or discount of undue commercial acceptance bills |
| Accounts receivable | 62,955,085.79 | Pledge for short-term borrowings |
| Total | 70,773,140.58 | -- |
V Investment Analysis
1. Total Investments Made
□ Applicable √ Not applicable
2. Significant Equity Investments Made in the Reporting Period
Unit: RMB
| Name of investee enterprise | Main businesses | Investment methods | Invested amount | Shareholding percentage | Funding Resources | Partners | Investment Duration | Product type | Status as on the date of the balance sheet | Predicted return | Investment return in the current period | Whether involved in any legal actions | Date of disclosure (if any) | Disclosure index (if any) |
| Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd. | Real estate development | acquisition | 450,000,000.00 | 51% | Self-owned | Guangzhou Bopi Enterprise Management Consulting Co., Ltd. | Five years | Real estate development | Completed | 637,500,000.00 | -91,307.39 | No | 6 May 2021 | Announcement on Acquisition of 51% of Equity in Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd. (No.: 2021-019) disclosed on China Securities, Securities Times, Ta Kung Pao and Cninfo. |
| Total | -- | -- | 450,000,000.00 | -- | -- | -- | -- | -- | -- | 637,500,000.00 | -91,307.39 | -- | -- | -- |
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
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 CompaniesPrincipal 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 | 1,023,102,075.02 | -1,549,917.29 | 0.00 | -91,307.39 | -91,307.39 |
| Shenzhen SPG Longgang Development Co., Ltd. | Subsidiary | Development of real estate | 30,000,000.00 | 291,381,110.38 | 116,441,993.42 | 12,349,349.52 | 2,565,776.40 | 1,933,857.30 |
| Shantou SEZ, Wellam FTY, Building Development, Co., Ltd. | Subsidiary | Development of real estate | 91,226,120.44 | 171,965,270.41 | 122,065,273.72 | 486,539.69 | -433,963.83 | -325,472.86 |
| Shantou Huafeng Real Estate Development Co., Ltd. | Subsidiary | Development of real estate | 80,000,000.00 | 952,838,038.56 | 16,202,291.90 | 38,827,292.52 | -5,899,083.53 | -4,439,312.03 |
| Great Wall Estate Co., Inc. (U.S.) | Subsidiary | Lease | 2,051,146.00 | 18,103,134.85 | -82,279,011.14 | 260,141.10 | -127,844.80 | -127,844.80 |
| Shenzhen | Subsidiary | Installation | 10,000,000.00 | 354,346,510.04 | 24,662,150.24 | 107,897,719.95 | 52,797.59 | 52,797.59 |
| Zhentong Engineering Co., Ltd. | and construction | |||||||
| Shenzhen Property Management Co., Ltd. | Subsidiary | Property management | 7,250,000.00 | 96,154,839.52 | 33,708,573.94 | 73,071,549.40 | 2,560,817.58 | 1,891,025.01 |
| Shenzhen Petrel Hotel Co., Ltd. | Subsidiary | Hotel Service | 30,000,000.00 | 46,411,619.33 | 39,806,172.20 | 7,280,593.26 | -2,343,315.93 | -2,343,315.93 |
| Shenzhen Huazhan Construction Supervision Co., Ltd. | Subsidiary | Construction supervision | 8,000,000.00 | 9,782,457.53 | 9,582,055.63 | 961,700.17 | -349,055.94 | -354,129.71 |
| Xin Feng Enterprise Co., Ltd. | Subsidiary | Investment and management | 502,335.00 | 126,007,345.51 | -452,775,018.16 | 2,173,952.38 | 1,775,215.94 | 1,740,183.41 |
Subsidiaries obtained or disposed in the Reporting Period:
| Name | Way of gaining and disposing subsidiaries | Influence on overall production and operation as well as performance |
| Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd. | Share acquisition | The revenue and profit are respectively expected to be RMB6 billion and RMB637.5 million for the period from Y2023 to Y2025. |
Information about principal subsidiaries and joint stock companies:
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 4 billion square meters, which will be developed in four phases and isexpected to achieve revenue of RMB6 billion and total profit of approximately RMB1.8 billion from 2023 to 2025. The Group hascontrol over the project company, which will be included in the scope of consolidation in May 2021.
2. 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. The Cuilinyuanproject developed by Shenzhen SPG Longgang Development Co., Ltd. brought forward RMB12 million in H1 2021 (the percentageof accumulative sales carried forward was 95%), accounting for 2.40% of the Company's operating revenue. Jinyedao andYuejingDongfang developed by Shantou SEZ, Wellam FTY, Building Development, Co., Ltd. left a few amount of remainingbuildings for sale. And Shantou Huafeng Real Estate Development Co., Ltd. was responsible for the development of Tianyuewanproject (divided into Phase I and Phase II). Tianyuewan Phase I was opened for sale in October 2016 and completed in December2019. The Phase II started construction in November 2018 and was completed at the end of June 2021. The overall sales progress isrelatively slow with an accumulated sales rate of about 68% for Phase I and 7% for Phase II.
3. Shenzhen Zhentong Engineering Co., Ltd. was engaged in the business of building installation and maintenance with the H1 2021operating revenues of RMB108 million and of 15.53% to the operating revenues of the Company.
4. Shenzhen Property Management Co., Ltd was engaged in the industry of property management, and the business was steady. TheH1 2021 operating revenues was of RMB73 million that was of 10.52% to the operating revenues of the Company.
5. The H1 2021 net profit of Xin Feng Enterprise Co., Ltd. was of RMB1.74 million which mainly due to the changes of exchangerate and it conducts no business.
6. The H1 2021 net profit of Shenzhen Petrel Hotel Co., Ltd. was of RMB-2.34 million which mainly due to the epidemic.
IX Structured Bodies Controlled by the Company
□ Applicable √ Not applicable
X Risks Facing the Company and Countermeasures
1. Macroeconomic risks and countermeasures
The real estate industry has a greater correlation with the macroeconomy and is more influenced by themacroeconomic cycle. At present, along with the accelerated rate of global vaccination and the lifting of lockdownmeasures in various countries, the global economic recovery has been significantly enhanced, but the worldeconomic situation remains complicated and severe due to the repeated ups and downs of the pandemic andfrequent variants of the virus. The Company will continue to pay attention to the international and domesticmacroeconomic situation and actively adjust its business strategy.
2. Industry regulation risks and countermeasures
Under the guidance of "housing is for living in, not for speculation", the regulation and control policies areprogressive. The market is entering a period of adjustment and the industry is entering a stage of profoundchanges. The development of the Company is undergoing new tests. The Company will continue to deepen itsresearch on industry policies, follow the national strategies, innovate its operating model and optimize itsdevelopment method.
3. Business operating risks and countermeasures
Due to the implementation of a series of policies such as the real estate loan concentration managementmechanism and "centralized land supply", it poses new challenges for the Company to expand its developmentland reserve. The Company will pay close attention to policy changes, formulate targeted land expansion plans,and actively explore new ways to expand land resources to strengthen the foundation of the main business. At thesame time, the Company will actively explore new areas and cultivate new 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 | Index to disclosed information |
| The 2020 Annual General Meeting | Annual General Meeting | 63.55% | 28 April 2021 | 29 April 2021 |
| The 1st Extraordinary General Meeting of 2021 | Extraordinary General Meeting | 63.55% | 16 July 2021 | 17 July 2021 | Resolutions of the 1st Extraordinary General Meeting of 2021 disclosed on China Securities, Securities Times, Ta Kung Pao and www.cninfo.com.cn (No.: 2021-026) |
2. Extraordinary General Meeting Convened at Request of Preference Shareholders with Resumed VotingRights
□ Applicable √ Not applicable
II Change of Directors, Supervisors and Senior Management
□ Applicable √ Not applicable
No changes occurred to the Company’s directors, supervisors and senior management during the Reporting Period. For theirinformation, see the 2020 Annual Report.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 Measures forEmployees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Part V Environmental and Social Responsibility
I Major Environmental IssuesIndicate by tick mark whether the Company or any of its subsidiaries is a heavily polluting business identified by the environmentalprotection 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.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 sustainable and healthy development, the Company actively fulfils its social responsibilities anddemonstrates its corporate social values. The Company adheres to compliance management, cares for employees,treats suppliers and customers with integrity, and supports poverty alleviation. The Company is committed topublic welfare activities, serves national pandemic prevention and control, and contributes to society withpractical actions. During the Reporting Period, the Company supported the work of family affairs in the region,donated RMB30,000 to families in need in Jiabei Community, Nanhu Sub-district, and jointly launched theactivity of "Positive Energy from the Youth to the Party" with Shenzhen Min Ai Integrated Service Center for theDisabled. Property management companies affiliated with the Company have twinned with communityworkstations to prevent and control pandemic and carried out volunteer services for nucleic acid testing, and havecompleted testing on 41,000 residents in 27 communities, 334 buildings and 19,310 households.
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 Reporting Periodor Ongoing at the Period-End
√ Applicable □ Not applicable
| Commitment | Promisor | Type of commitment | Details of commitment | Date of commitment making | Term of commitment | Fulfillment |
| Commitments made in share reform | ||||||
| Commitments made in acquisition documents or shareholding alteration documents | ||||||
| Commitments made in time of asset restructuring | The Company | Asset restructuring | The Company's major asset restructuring was terminated, and trading of the stocks was resumed on 9 November 2020. The Company promises that it will not initiate the major asset restructuring after the announcement of termination was disclosed within at least two months. | 9 November 2020 | Two months | Completed |
| Commitments made in time of IPO or refinancing | ||||||
| Equity incentive commitments | ||||||
| Other commitments made to minority interests | ||||||
| Fulfilled on time | Yes | |||||
| Specific reasons for failing to fulfill commitments on time and plans for next step (if any) | N/A | |||||
II Occupation of the Company’s Capital by the Controlling Shareholder or any of Its RelatedParties 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 the ReportingPeriod
□ 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 Matters
Significant 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 | 2,100 | No | In execution | ? Xi’an Business Tourism Company Limited (hereinafter | Shaanxi High People’s Court Sold all assets | 20 March 2021 | Annual Report 2020 |
| Lawsuit | 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. | 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. | (full text) (No.: 2021-007) on www.cninfo.com.cn |
Other legal matters:
□ Applicable √ Not applicable
IX Punishments and Rectifications
□ Applicable √ Not applicable
No such cases in the Reporting Period.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
| Related party | Relationship with the Company | Type of transaction | Specific transaction | Pricing principle | Transaction price | Total value (RMB’0,000) | As % of total value of all same-type transac | Approved transaction line (RMB’0,000) | Over the approved line or not | Method of settlement | Obtainable market price for sam | Disclosure date | Index to disclosed information |
| tions | e-type transactions | ||||||||||||
| Shenzhen Jianan (Group) Co., Ltd. | Controlled by the same company as the parent | Engineering construction | Wholly-owned subsidiary undertook engineering construction of related party | Negotiate through agreements | -- | 260 | 260 | Not | Bank transfer | -- | 20 March 2021 | 2020 Annual Report (No.: 2021-007) disclosed on www.cninfo.com.cn | |
| Shenzhen Jianan (Group) Co., Ltd. | Controlled by the same company as the parent | Engineering construction | Wholly-owned subsidiary paid total account for construction contracted to related party | Negotiate through agreements | -- | 4,033.5 | 4,033.5 | Not | Bank transfer | -- | 20 March 2021 | 2020 Annual Report (No.: 2021-007) disclosed on www.cninfo.com.cn | |
| Total | -- | -- | 4,293.5 | -- | 4,293.5 | -- | -- | -- | -- | -- | |||
| Large-amount sales return in detail | N/A | ||||||||||||
| Give the actual situation in the Reporting Period (if any) where an estimate had been made for the total value of continuing related-party transactions by type to occur in the Reporting Period | N/A | ||||||||||||
| Reason for any significant difference between the transaction price and the market reference price (if applicable) | N/A | ||||||||||||
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, or Finance Companies Controlled by the Company
□ 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, finance company controlled by the Company or any other related parties.
6. 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
No such cases in the Reporting Period.
3. Cash Entrusted for Wealth Management
Unit: RMB’0,000
| Type | Funding source | Amount | Undue amount | Unrecovered overdue amount | Unrecovered overdue amount with provision for impairment |
| Bank financial products | Self-funded | 60,000 | 60,104.81 | 0 | 0 |
| Bank financial products | Self-funded | 70,000 | 70,128.14 | 0 | 0 |
| Total | 130,000 | 130,232.95 | 0 | 0 | |
Particulars of cash entrusted for wealth management with single significant amount or low security, bad liquidity, and no capitalpreservation
□Applicable √ Not applicable
Wealth management entrustments with possible impairments including an expectedly unrecoverable principal:
□Applicable √ Not applicable
4. Significant Continuing Contracts
□ Applicable √ Not applicable
5. Other Significant Contracts
□ Applicable √ Not applicable
No such cases in the Reporting Period.XIII Other Significant EventsIn order to implement the plan of the State Council for transferring parts of state-owned capital to enrich the socialsecurity fund, in January 2021, SIHC, the controlling shareholder of the Company, decided to transfer 64,288,426tradable ordinary A-shares of the Company (accounting for 6.355% of the total share capital) to ShenzhenState-owned Equity Management Co., Ltd. (hereinafter referred to as "State-owned Equity Company") free ofcharge to enrich the social security fund State-owned Equity Company is a wholly-owned subsidiary newlyestablished by SIHC to manage the transferred state-owned equity in a special account. In March 2021, theregistration procedure for the above share transfer was completed. Before and after the free transfer ofstate-owned equity, the controlling shareholder and actual controller of the Company remained unchanged. Formore details, see the Suggestive Announcement on the Free Transfer of Parts of State-owned Equity of
Controlling Shareholders to Enrich the Social Security Fund (Announcement No. 2021-001) and theAnnouncement on the Completion of Free Transfer Registration of Parts of State-owned Equity of ControllingShareholders to Enrich the Social Security Fund (Announcement No. 2021-003) disclosed on 29 January and 18March 2021.After deliberation and approval at the 2020 General Meeting of Shareholders, the Company decided to purchaseliability insurance for Directors, Supervisors and Senior Managers. For more details, please refer to theAnnouncement on Purchasing Liability Insurance for Directors, Supervisors and Senior Managers(Announcement No. 2021-008) and the Announcement on the Resolution of the 2020 General Meeting ofShareholders (Announcement No. 2021-011) disclosed on 20 March and 29 April 2021. During the ReportingPeriod, the issue regarding Liability Insurance for Directors, Supervisors and Senior Managers has beencompleted.After deliberation and approval at the 61st Meeting of the 7th Board of Directors, the Company purchased wealthmanagement products with its own funds during the Reporting Period. For more details, see the Announcement onResolutions of the 61st Meeting of the 7th Board of Directors (Announcement No. 2021-012), the Announcementon Authorizing the Management Group to Use Own Funds to Purchase Wealth Management Products(Announcement No. 2021-017) and the Announcement on the Progress of Using Own Funds to Purchase WealthManagement Products (Announcement No. 2021-022) disclosed on 29 April and 4 June 2021.After deliberation and approval at the 62nd Meeting of the 7th Board of Directors, the Company decided toacquire 51% equity of Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd. held by Guangzhou BopiEnterprise Management Consulting Co., Ltd. with its own capital of RMB450 million. Transaction transfer andregistration changes were completed in the Reporting Period. For more details, see the Announcement onResolutions of the 62nd Meeting of the 7th Board of Directors (Announcement No. 2021-018), the Announcementon Acquisition of 51% Equity of Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd. (Announcement No.2021-019) and the Announcement on Progress of Acquisition of 51% Equity of Guangdong Jianbang Group(Huiyang) Industrial Co., Ltd. (Announcement No. 2021-020) disclosed on 6 May and 15 May 2021.The Measures for the Management of Employees' Co-investment and the Measures for the Management ofEmployees' Co-investment of Linxijun Project were deliberated and approved at the 63rd Meeting of the 7thBoard of Directors and the 2021 First Extraordinary General Meeting. For more details, see the Announcement onResolutions of the 63rd Meeting of the 7th Board of Directors (Announcement No. 2021-023) and theAnnouncement on Resolutions of the 2021 First Extraordinary General Meeting of Shareholders (AnnouncementNo. 2021-026) disclosed on 1 July and 17 July 2021.
XIV Significant Events of Subsidiaries
□ Applicable √ Not applicable
Part VII Share Changes and Shareholder InformationI Share Changes
1. Share Changes
Unit: share
| Before | Increase/decrease (+/-) | 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 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 1.1 Shares held by the state | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 1.2 Shares held by state-own legal person | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 1.3 Shares held by other domestic investors | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| Among which: shares held by domestic legal person | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0.00% | |
| Shares held by domestic natural person | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 1.4 Oversea shareholdings | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0.00% | |
| Among which: shares held by oversea legal person | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| Shares held by oversea natural person | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 2. Unrestricted shares | 1,011,660,000 | 100.00% | 0 | 0 | 0 | 0 | 0 | 1,011,660,000 | 100.00% |
| 2.1 RMB ordinary shares | 891,660,000 | 88.14% | 0 | 0 | 0 | 0 | 0 | 891,660,000 | 88.14% |
| 2.2 Domestically listed foreign shares | 120,000,000 | 11.86% | 0 | 0 | 0 | 0 | 0 | 120,000,000 | 11.86% |
| 2.3 Oversea listed foreign shares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 2.4 Other | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 3. Total shares | 1,011,660,000 | 100.00% | 0 | 0 | 0 | 0 | 0 | 1,011,660,000 | 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 | 61,695 | 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 of shares | Amount | |||||||||
| Shenzhen Investment Holdings Co., Ltd | State-owned legal person | 57.19% | 578,595,836 | -64,288,426 | 578,595,836 | |||||
| Shenzhen State-owned Equity Management Co., Ltd. | Domestic non-state-owned legal person | 6.35% | 64,288,426 | +64,288,426 | 64,288,426 | ||||
| Yang Jianmin | Domestic natural person | 0.39% | 3,960,377 | 3,960,377 | |||||
| Lin Weirong | Domestic natural person | 0.32% | 3,202,800 | 3,202,800 | |||||
| Pan Jun | Domestic natural person | 0.21% | 2,132,300 | 2,132,300 | |||||
| Liu Yuqing | Domestic natural person | 0.19% | 1,947,900 | 1,947,900 | |||||
| Liang Weicheng | Domestic natural person | 0.17% | 1,735,100 | 1,735,100 | |||||
| Zang Xiangfeng | Domestic natural person | 0.16% | 1,612,163 | 1,612,163 | |||||
| Nanjing Fengrun Investment Development Co., Ltd. | Domestic non-state-owned legal person | 0.16% | 1,568,247 | 1,568,247 | |||||
| He Qiao | Domestic natural person | 0.15% | 1,554,800 | 1,554,800 | |||||
| Strategic investor or general legal person becoming a top-10 ordinary shareholder due to rights issue (if any) (see Note 3) | 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 (see note 11) | None | ||||||||
| Top 10 unrestricted shareholders | |||||||||
| Name of shareholder | Unrestricted shares held at the period-end | Shares by type | |||||||
| Type | Shares | ||||||||
| Shenzhen Investment Holdings Co., Ltd | 578,595,836 | RMB ordinary shares | 578,595,836 | ||||||
| Shenzhen State-owned Equity Management Co., Ltd. | 64,288,426 | RMB ordinary shares | 64,288,426 |
| Yang Jianmin | 3,960,377 | RMB ordinary shares | 3,960,377 |
| Lin Weirong | 3,202,800 | RMB ordinary shares | 3,202,800 |
| Pan Jun | 2,132,300 | RMB ordinary shares | 2,132,300 |
| Liu Yuqing | 1,947,900 | RMB ordinary shares | 1,947,900 |
| Liang Weicheng | 1,735,100 | RMB ordinary shares | 1,735,100 |
| Zang Xiangfeng | 1,612,163 | RMB ordinary shares | 1,612,163 |
| Nanjing Fengrun Investment Development Co., Ltd. | 1,568,247 | RMB ordinary shares | 1,568,247 |
| He Qiao | 1,554,800 | RMB ordinary shares | 1,554,800 |
| 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) (see Note 4) | Among the top 10 shareholders of the Company, the third, fourth, sixth, seventh, eighth and tenth shareholders respectively held 1,466,400 shares, 1,999,900 shares, 1,887,900 shares, 1,735,100 shares, 1,000,663 shares and 1,010,000 shares in their credit securities accounts. | ||
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of theCompany 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
No such cases in the Reporting Period. For details, see Annual Report 2020.
V Change of the Controlling Shareholder or the De Facto ControllerChange 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 2021
Presented in RMB
| Item | 30 June 2021 | 30 June 2020 |
| Current assets: | ||
| Cash at bank and on hand | 882,306,006.32 | 2,687,465,070.01 |
| Provision of Settlement fund | ||
| Funds lent | ||
| Financial assets held for trading | 1,302,329,484.00 | |
| Derivative financial assets | ||
| Notes receivable | 40,590,521.89 | 35,438,045.34 |
| Accounts receivable | 74,309,539.94 | 59,590,944.06 |
| Accounts receivable financing | ||
| Prepayments | 4,572,021.68 | 3,205,534.51 |
| Insurance premiums receivables | ||
| Cession premiums receivables | ||
| Provision of cession premiums | ||
| Other receivables | 18,818,282.54 | 32,745,043.84 |
| Including: Interest receivable | ||
| Dividends receivable | 1,052,192.76 | 1,052,192.76 |
| Recoursable Financial assets acquired |
| Inventories | 2,974,957,505.77 | 1,220,464,112.56 |
| Contractual assets | ||
| Assets held for sale | ||
| Non-current assets due within one year | ||
| Other current assets | 132,804,668.25 | 102,907,134.79 |
| Total current assets | 5,430,688,030.39 | 4,141,815,885.11 |
| Non-current assets: | ||
| Loans and payments | ||
| Debt investment | ||
| Investments in other debt obligations | ||
| Long-term receivables | ||
| Long-term equity investments | 377,489.65 | 377,489.65 |
| Investments in other equity instrument | 38,081,275.18 | 37,510,860.51 |
| Other non-current financial assets | ||
| Investment property | 603,353,638.54 | 616,365,621.53 |
| Fixed assets | 26,885,430.32 | 28,039,978.43 |
| Construction in progress | ||
| Productive living assets | ||
| Oil and gas assets | ||
| Use rights assets | ||
| Intangible assets | ||
| Development costs | ||
| Goodwill | ||
| Long-term prepaid expense | 678,423.76 | 61,667.53 |
| Deferred tax assets | 104,287,487.80 | 112,745,243.98 |
| Other non-current assets | ||
| Total non-current assets | 773,663,745.25 | 795,100,861.63 |
| Total assets | 6,204,351,775.64 | 4,936,916,746.74 |
| Current liabilities: | ||
| Short-term loans | 70,773,140.58 | 76,893,995.94 |
| Borrowings from central bank | ||
| Deposit funds |
| Financial liabilities at fair value through | ||
| Derivative financial liabilities | ||
| Notes payable | 330,993,002.80 | |
| Accounts payable | 99,752,685.51 | 176,926,614.28 |
| Advances from customers | 21,336,752.68 | 5,940,092.15 |
| Contractual liabilities | 375,038,081.55 | 196,786,977.19 |
| 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 | 54,471,652.80 | 60,467,834.09 |
| Tax payable | 498,393,009.62 | 459,709,646.95 |
| Other payables | 582,192,504.40 | 277,105,129.74 |
| 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 | ||
| Other current liabilities | 18,752,463.49 | 8,917,027.07 |
| Total current liabilities | 2,051,703,293.43 | 1,262,747,317.41 |
| Non-current liabilities: | ||
| Provision for insurance contracts | ||
| Long-term loans | ||
| Debentures payable | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities | ||
| Long-term payables | 8,245,567.40 | 7,480,233.43 |
| Long-term employee benefits |
| payable | ||
| Provisions | ||
| Deferred income | ||
| Deferred tax liabilities | 9,601,940.74 | 9,601,940.74 |
| Other non-current liabilities | ||
| Total non-current liabilities | 17,847,508.14 | 17,082,174.17 |
| Total liabilities | 2,069,550,801.57 | 1,279,829,491.58 |
| 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 | 29,316,447.41 | 28,163,050.13 |
| Specific reserve | ||
| Surplus reserve | 218,724,273.67 | 218,724,273.67 |
| Generic Risk Reserve | ||
| Retained earnings | 1,605,152,956.45 | 1,560,720,254.31 |
| Total equity attributable to shareholders of the company | 3,843,098,587.64 | 3,797,512,488.22 |
| Non-controlling interests | 291,702,386.43 | -140,425,233.06 |
| Total equity | 4,134,800,974.07 | 3,657,087,255.16 |
| Total liabilities and equity | 6,204,351,775.64 | 4,936,916,746.74 |
Legal representative: Zhengyu Liu General Accountant：Zhongliang Zhao The head of theaccounting department: Yanjun Qiao
2、Financial Position Statement of the Parent Entity
Presented in RMB
| Item | 30 June 2021 | 30 June 2020 |
| Current assets: | ||
| Cash at bank and on hand | 643,929,563.08 | 2,329,517,987.02 |
| Financial assets at fair value through profit or loss | 1,302,329,484.00 |
| Derivative financial assets | ||
| Notes receivable | ||
| Accounts receivable | 311,815.21 | 5,418,024.74 |
| Accounts receivable financing | ||
| Prepayments | 200,000.00 | 200,000.00 |
| Other receivables | 1,405,959,127.23 | 1,160,414,195.39 |
| Including: Interest receivable | ||
| Dividends receivable | ||
| Inventories | 106,232,584.55 | 207,606,220.98 |
| Contractual assets | ||
| Assets held for sale | ||
| Non-current assets due within one year | ||
| Other current assets | 9,541,021.50 | 945,499.13 |
| Total current assets | 3,468,503,595.57 | 3,704,101,927.26 |
| Non-current assets: | ||
| Debt investment | ||
| Investments in other debt obligations | ||
| Long-term receivables | ||
| Long-term equity investments | 600,584,167.95 | 150,584,167.95 |
| Investments in other equity instruments | 14,076,578.89 | 13,508,202.32 |
| Other non-current financial assets | ||
| Investment property | 487,883,822.03 | 499,145,554.67 |
| Fixed assets | 16,575,227.39 | 17,743,083.73 |
| Construction in progress | ||
| Productive living assets | ||
| Oil and gas assets | ||
| Use rights assets | ||
| Intangible assets | ||
| Development costs | ||
| Goodwill | ||
| Long-term prepaid expense | 675,857.90 | 61,667.53 |
| Deferred tax assets | 83,740,299.64 | 83,740,299.64 |
| Other non-current assets | ||
| Total non-current assets | 1,203,535,953.80 | 764,782,975.84 |
| Total assets | 4,672,039,549.37 | 4,468,884,903.10 |
| Current liabilities: | ||
| Short-term loans | ||
| Financial liabilities at fair value through | ||
| Derivative financial liabilities | ||
| Notes payable | ||
| Accounts payable | 36,585,944.45 | 77,187,914.50 |
| Advances from customers | ||
| Contractual liabilities | 320,567,916.55 | 172,241,938.46 |
| Payroll payable | 30,993,173.09 | 27,255,860.05 |
| Tax payable | 489,269,453.56 | 450,281,265.17 |
| Other payables | 182,615,239.41 | 194,609,459.87 |
| Including: Interest payable | 16,535,277.94 | 16,535,277.94 |
| Dividends payable | ||
| Liabilities held for sale | ||
| Non-current liabilities due within one year | ||
| Other current liabilities | 16,028,395.83 | 8,612,096.92 |
| Total current liabilities | 1,076,060,122.89 | 930,188,534.97 |
| Non-current liabilities: | ||
| Long-term loans | ||
| Debentures payable | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities | ||
| Long-term payables | ||
| Long-term employee benefits payable | ||
| Provisions | ||
| Deferred income | ||
| Deferred tax liabilities | 4,812,392.47 | 4,812,392.47 |
| Other non-current liabilities |
| Total non-current liabilities | 4,812,392.47 | 4,812,392.47 |
| Total liabilities | 1,080,872,515.36 | 935,000,927.44 |
| 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 | 1,699,528.31 | 1,131,151.74 |
| Specific reserve | ||
| Surplus reserve | 195,594,660.26 | 195,594,660.26 |
| Retained earnings | 1,417,500,914.31 | 1,360,786,232.53 |
| Total equity | 3,591,167,034.01 | 3,533,883,975.66 |
| Total liabilities and equity | 4,672,039,549.37 | 4,468,884,903.10 |
3、Consolidated Statement of Profit or Loss and Other Comprehensive Income
Presented in RMB
| Item | 6 months ended 30 June 2021 | 6 months ended 30 June 2020 |
| 1. Revenue | 694,598,218.47 | 596,258,495.40 |
| Including: Operating revenue | 694,598,218.47 | 596,258,495.40 |
| Interest income | ||
| Insurance premium income | ||
| Handling charge and commission income | ||
| 2. Expenses | 520,035,493.63 | 472,559,039.99 |
| Including: operating expenses | 331,975,678.55 | 343,908,087.46 |
| 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 | 147,359,118.39 | 85,608,112.87 |
| Selling and distribution expense | 16,815,600.06 | 8,536,448.38 |
| General and administrative expenses | 40,299,584.22 | 40,253,977.26 |
| Research and development expense | ||
| Financial expense | -16,414,487.59 | -5,747,585.98 |
| Including: Interest expense | ||
| Interest income | 16,398,025.57 | 5,932,973.60 |
| Add: Other income | 643,733.52 | 557,379.14 |
| Investment income (“-” for losses) | 15,217,058.60 | |
| 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) | 2,329,484.00 | |
| Credit impairment loss (“-” for loss) | 1,142,580.28 | |
| Impairment losses (“-” for losses) | 534,500.00 | |
| Gains from assets disposal (“-” for losses) | ||
| 3. Operating profit (“-” for loss) | 178,678,522.64 | 140,008,393.15 |
| Add: Non-operating income | 1,370,757.88 | 2,902,033.77 |
| Less: Non-operating expense | 25,246.47 | 2,001,278.48 |
| 4. Profit before income tax (“-” for losses) | 180,024,034.05 | 140,909,148.44 |
| Less: Income tax expense | 47,841,099.11 | 43,599,689.97 |
| 5. Net profit for the year (“-” for net losses)) | 132,182,934.94 | 97,309,458.47 |
| （5.1 Classification according to operation continuity | ||
| 5.1.1 Net profit from continuing operations (“-” for net loss) | 132,182,934.94 | 97,309,458.47 |
| 5.1.2Net profit from discontinued operations (“-” for net loss) | ||
| 5.2 Classification according to attribute | ||
| 5.2.1 Members of the parent entity ("-" for net loss) | 132,447,122.14 | 97,274,985.72 |
| 5.2.2 Non-controlling interests (“-” for net loss) | -264,187.20 | 34,472.75 |
| 6. Other comprehensive income (net of tax) | 459,551.69 | 706,086.70 |
| Other comprehensive income (net of tax) attributable to members of the parent entity | 1,153,397.28 | 369,487.94 |
| 6.1 Other comprehensive income Items that will not be reclassified subsequently to profit or loss | 570,414.67 | -415,909.17 |
| 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 | ||
| 6.1.3 Changes in the fair value of investments in other equity instruments | 570,414.67 | -415,909.17 |
| 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 | 582,982.61 | 785,397.11 |
| 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 | 582,982.61 | 785,397.11 |
| 6.2.7 Other | ||
| Other comprehensive income (net of tax) attributable to non-controlling interests | -693,845.59 | 336,598.76 |
| 7. Total comprehensive income for the period | 132,642,486.63 | 98,015,545.17 |
| Attributable to members of parent entity | 133,600,519.42 | 97,644,473.66 |
| Attributable to non-controlling interests | -958,032.79 | 371,071.51 |
| 8. Earnings per share | ||
| 8.1 Basic earnings per share | 0.1309 | 0.0962 |
| 8.2 Diluted earnings per share | 0.1309 | 0.0962 |
In a business combination involving enterprises under common control, (net losses)/net profit of combined parties before thecombination date is RMB 0.00, and (net losses)/net profit of combined parties in prior period is RMB 0.00.。
Legal representative: Zhengyu Liu General Accountant：Zhongliang Zhao The head of the accountingdepartment: Yanjun Qiao
4、Statement of Profit or Loss and Other Comprehensive Income For the Parent Entity
Presented in RMB
| Item | 6 months ended 30 June 2021 | 6 months ended 30 June 2020 |
| 1. Revenue | 455,740,814.41 | 231,361,037.44 |
| Less: Cost of sales | 115,125,525.93 | 64,778,297.24 |
| Taxes and surcharges | 142,361,068.95 | 69,869,636.48 |
| Selling and distribution expense | 11,176,992.53 | 3,544,826.68 |
| General and administrative expenses | 24,102,955.71 | 23,912,101.72 |
| Research and development expense | ||
| Financial expense | -25,571,620.46 | -21,037,122.06 |
| Including: Interest expense | ||
| Interest income | 27,256,987.84 | 17,954,071.46 |
| Add: Other income | 8,516.31 | 28,083.69 |
| Investment income (“-” for losses) | 15,217,058.60 | |
| 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) | 2,329,484.00 | |
| Credit impairment loss (“-” for loss) | 586,866.00 | |
| Impairment losses (“-” for losses) | ||
| Gains from assets disposal (“-” for losses) | ||
| 2. Operating profit (“-” for loss) | 191,470,758.06 | 105,538,439.67 |
| Add: Non-operating income | 1,334,736.50 | 170,000.10 |
| Less: Non-operating expense | 1,550.00 | 502,140.62 |
| 3. Profit before income tax (“-” for losses) | 192,803,944.56 | 105,206,299.15 |
| Less: Income tax expense | 48,074,842.78 | 27,690,892.73 |
| 4. Net profit for the year (“-” for net losses) | 144,729,101.78 | 77,515,406.42 |
| 4.1 Net profit from continuing operations (“-” for net loss) | 144,729,101.78 | 77,515,406.42 |
| 4.2 Net profit from discontinued operations (“-” for net losses) |
| 5. Other comprehensive income, net of tax | 568,376.57 | 320,373.69 |
| 6.1 Other comprehensive income Items that will not be reclassified subsequently to profit or loss | 568,376.57 | 320,373.69 |
| 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 | ||
| 6.1.3 Changes in the fair value of investments in other equity instruments | 568,376.57 | 320,373.69 |
| 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 | ||
| 6.2.1 Other comprehensive income 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 | ||
| 6.2.7 Other | ||
| 6. Total comprehensive income for the period | 145,297,478.35 | 77,835,780.11 |
| 7. Earnings per share | ||
| 8.1 Basic earnings per share | 0.0229 | 0.8119 |
| 8.2 Diluted earnings per share | 0.0229 | 0.8119 |
5、Consolidated Statement Of Cash Flows
Presented in RMB
| Item | 6 months ended 30 June 2021 | 6 months ended 30 June 2020 |
| 1. Cash flows from operating activities: | ||
| Proceeds from sales of goods | 958,228,940.19 | 685,612,219.39 |
| 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 | 15,618.75 | |
| Proceeds from other operating activities | 248,150,629.39 | 42,510,375.71 |
| Sub-total of cash inflows | 1,206,379,569.58 | 728,138,213.85 |
| Payment for goods and services | 843,952,869.40 | 214,833,176.41 |
| 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, handling charges and | ||
| Commissions on issuance policies paid | ||
| Payment to and for employees | 76,069,285.98 | 73,647,542.55 |
| Payments of various taxes | 224,980,813.32 | 543,169,493.34 |
| Payment for other operating activities | 346,917,352.34 | 108,730,800.14 |
| Sub-total of cash outflows | 1,491,920,321.04 | 940,381,012.44 |
| Net cash flows from operating activities | -285,540,751.46 | -212,242,798.59 |
| 2. Cash flows from investing activities: | ||
| Proceeds from disposal of investments | ||
| Investment returns received | 20,317,808.22 | |
| Net proceeds from disposal of fixed assets, intangible assets and other long-term assets | 1,700.00 | 1,000.00 |
| Net proceeds from disposal of subsidiaries and other business units | ||
| Proceeds from other investing activities | 1,000,000,000.00 | |
| Sub-total of cash inflows | 1,700.00 | 1,020,318,808.22 |
| Payment for acquisition of fixed assets, intangible assets and other long-term assets | 636,636.13 | 55,767.90 |
| Payment for acquisition of investments | ||
| Net increase in pledged loans | ||
| Net payment for acquisition of subsidiaries and other business units | 449,881,758.15 | |
| Payment for other investing activities | 1,300,000,000.00 | |
| Sub-total of cash outflows | 1,750,518,394.28 | 55,767.90 |
| Net cash flows from investing activities | -1,750,516,694.28 | 1,020,263,040.32 |
| 3. Cash flows from financing activities: | ||
| Proceeds from investors | ||
| Including: Proceeds from non-controlling shareholders of subsidiaries | ||
| Proceeds from borrowings | ||
| Proceeds from other financing activities | 331,178,702.21 | |
| Sub-total of cash inflows | 331,178,702.21 | |
| Repayments of borrowings | ||
| Payment for dividends, profit distributions or interest | 88,014,419.99 | 166,923,900.00 |
| 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 | 88,014,419.99 | 166,923,900.00 |
| Net cash flows from financing activities | 243,164,282.22 | -166,923,900.00 |
| 4. Effect of foreign exchange rate changes on cash and cash equivalents | -17,882.55 | -63,668.21 |
| 5. Net increase in cash and cash equivalents | -1,792,911,046.07 | 641,032,673.52 |
| Add: Cash and cash equivalents as at the year beginning | 2,669,103,926.82 | 1,507,189,760.35 |
| 6. Cash and cash equivalent as at the year end | 876,192,880.75 | 2,148,222,433.87 |
6. Cash Flow Statement of the Company as the Parent
Presented in RMB
| Item | 30 June 2021 | 30 June 2020 |
| 1. Cash flows from operating activities: | ||
| Proceeds from sales of goods | 646,885,255.16 | 350,704,786.01 |
| Refund of taxes | ||
| Proceeds from other operating activities | 332,351,724.25 | 7,424,276.64 |
| Sub-total of cash inflows | 979,236,979.41 | 358,129,062.65 |
| Payment for goods and services | 43,601,422.20 | 14,267,901.93 |
| Payment to and for employees | 20,102,672.44 | 17,517,984.42 |
| Payments of various taxes | 184,272,398.39 | 68,674,752.15 |
| Payment for other operating activities | 222,180,710.27 | 261,704,229.68 |
| Sub-total of cash outflows | 470,157,203.30 | 362,164,868.18 |
| Net cash flows from operating activities | 509,079,776.11 | -4,035,805.53 |
| 2. Cash flows from investing activities: | ||
| Proceeds from disposal of investments | ||
| Investment returns received | 20,317,808.22 | |
| Net proceeds from disposal of fixed assets, intangible assets and other long-term assets | 1,000.00 | |
| Net proceeds from disposal of subsidiaries and other business units | ||
| Proceeds from other investing activities | 1,000,000,000.00 | |
| Sub-total of cash inflows | 1,000.00 | 1,020,317,808.22 |
| Payment for acquisition of fixed assets, intangible assets and other long-term assets | 91,626.00 | 41,498.00 |
| Payment for acquisition of investments | ||
| Net payment for acquisition of subsidiaries and other business units | 450,000,000.00 | |
| Payment for other investing activities | 1,644,696,200.26 | |
| Sub-total of cash outflows | 2,094,787,826.26 | 41,498.00 |
| Net cash flows from investing activities | -2,094,786,826.26 | 1,020,276,310.22 |
| 3. Cash flows from financing activities: | ||
| Proceeds from investors | ||
| Proceeds from borrowings | ||
| Proceeds from other financing activities | ||
| Sub-total of cash inflows | ||
| Repayments of borrowings | ||
| Payment for dividends, profit distributions or interest | 88,014,419.99 | 166,923,900.00 |
| Payment for other financing activities | ||
| Sub-total of cash outflows | 88,014,419.99 | 166,923,900.00 |
| Net cash flows from financing activities | -88,014,419.99 | -166,923,900.00 |
| 4. Effect of foreign exchange rate changes on cash and cash equivalents | 102,684.42 | -191,346.36 |
| 5. Net increase in cash and cash equivalents | -1,673,618,785.72 | 849,125,258.33 |
| Add: Cash and cash equivalents as at the year beginning | 2,311,776,619.47 | 963,737,437.55 |
| 6. Cash and cash equivalent as at the year end | 638,157,833.75 | 1,812,862,695.88 |
7、Consolidated Statement Of Changes in Equity
Presented in RMB
| Item | 30 June 2021 | ||||||||||||||
| 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 | 28,163,050.13 | 218,724,273.67 | 1,560,720,254.31 | 3,797,512,488.22 | -140,425,233.06 | 3,657,087,255.16 | |||||||
| 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 | 28,163,050.13 | 218,724,273.67 | 1,560,720,254.31 | 3,797,512,488.22 | -140,425,233.06 | 3,657,087,255.16 | |||||||
| III. Changes in equity during the year (“- “for decrease) | 1,153,397.28 | 44,432,702.14 | 45,586,099.42 | 432,127,619.49 | 477,713,718.91 | ||||||||||
| (I) Total comprehensive income | 1,153,397.28 | 132,447,122.14 | 133,600,519.42 | -958,032.79 | 132,642,486.63 | ||||||||||
| (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 | -88,014,420.00 | -88,014,420.00 | -88,014,420.00 | ||||||||||||
| 1.Appropriation for surplus reserves | |||||||||||||||
| 2.Appropriation for general reserves | |||||||||||||||
| 3.Distribution to shareholders | -88,014,420.00 | -88,014,420.00 | -88,014,420.00 | ||||||||||||
| 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 | |||||||||||||||
| (V) Special Reserve | |||||||||||||||
| 1. Appropriation during the year | |||||||||||||||
| 2.Utilization during the year | |||||||||||||||
| (VI) Others | 433,085,652.28 | 433,085,652.28 | |||||||||||||
| IV. Balance at the end of the period | 1,011,660,000.00 | 978,244,910.11 | 29,316,447.41 | 218,724,273.67 | 1,605,152,956.45 | 3,843,098,587.64 | 291,702,386.43 | 4,134,800,974.07 |
Presented in RMB
| Item | 30 June 2020 |
| 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 | 20,831,004.13 | 191,222,838.94 | 1,464,915,816.81 | 3,666,874,569.99 | -141,891,335.84 | 3,524,983,234.15 | |||||||
| 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 | 20,831,004.13 | 191,222,838.94 | 1,464,915,816.81 | 3,666,874,569.99 | -141,891,335.84 | 3,524,983,234.15 | |||||||
| III. Changes in equity during the year (“- “for decrease) | 369,487.94 | -69,648,914.28 | -69,279,426.34 | 371,071.51 | -68,908,354.83 | ||||||||||
| (I) Total comprehensive income | 369,487.94 | 97,274,985.72 | 97,644,473.66 | 371,071.51 | 98,015,545.17 | ||||||||||
| (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 | -166,923,900.00 | -166,923,900.00 | -166,923,900.00 | ||||||||||||
| 1.Appropriation for surplus | |||||||||||||||
| 1.Appropriation for general reserves | |||||||||||||||
| 3.Distribution to shareholders | -166,923,900.00 | -166,923,900.00 | -166,923,900.00 | ||||||||||||
| 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 | |||||||||||||||
| (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 | 21,200,492.07 | 191,222,838.94 | 1,395,266,902.53 | 3,597,595,143.65 | -141,520,264.33 | 3,456,074,879.32 |
8、Consolidated Statement Of Changes in Equity Of The Parent Entity
Presented in RMB
| Item | 30 June 2021 | |||||||||||
| 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 | 1,131,151.74 | 195,594,660.26 | 1,360,786,232.53 | 3,533,883,975.66 | ||||||
| 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 | 1,131,151.74 | 195,594,660.26 | 1,360,786,232.53 | 3,533,883,975.66 | ||||||
| III. Changes in equity during the year (“- “for decrease) | 568,376.57 | 56,714,681.78 | 57,283,058.35 | |||||||||
| (I) Total comprehensive income | 568,376.57 | 144,729,101.78 | 145,297,478.35 | |||||||||
| (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 | -88,014,420.00 | -88,014,420.00 | ||||||||||
| 1.Appropriation for surplus |
| 2．对所有者（或股东）的分配 | -88,014,420.00 | -88,014,420.00 | ||||||||||
| 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 | 1,699,528.31 | 195,594,660.26 | 1,417,500,914.31 | 3,591,167,034.01 |
Presented in RMB
| Item | 30 June 2020 | |||||||||||
| Share capital | Other equity instruments | 资本公积 | 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 | 922,125.77 | 168,093,225.53 | 1,280,197,219.96 | 3,425,584,502.39 | ||||||
| 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 | 922,125.77 | 168,093,225.53 | 1,280,197,219.96 | 3,425,584,502.39 | ||||||
| III. Changes in equity during the year (“- “for decrease) | 320,373.69 | -89,408,493.58 | -89,088,119.89 | |||||||||
| (I) Total comprehensive income | 320,373.69 | 77,515,406.42 | 77,835,780.11 | |||||||||
| (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 | -166,923,900.00 | -166,923,900.00 | ||||||||||
| 1.Appropriation for surplus | ||||||||||||
| 2．对所有者（或股东）的分配 | -166,923,900.00 | -166,923,900.00 | ||||||||||
| 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 | 1,242,499.46 | 168,093,225.53 | 1,190,788,726.38 | 3,336,496,382.50 |
III. Company informaitionShenzhen Special Economic Zone Real Estate and Properties (Group) Co., Ltd. (the “Group” or “theCompany”) was established in July 1993, as approved by the Shenzhen Municipal Government withdocument SFBF (1993) 724. The Company issued A shares on 15 September 1993 and issued B shareson 10 January 1994. On 31 August 1994, the issued B shares were listed in the New York Exchangemarket as class A recommendation. The total share capital is 1,011,660,000 shares, including891,660,000 of A shares, and 120,000,000 of B shares. The company business license registrationnumber is 91440300192179585N, and the registered capital is RMB 1,011,660,000.00. The Company’sheadquarter is located at Floor 45-48, Shen Fang Plaza, Ren Min South Road, Luo Hu District, ShenZhen, Guangdong province.On 13 October 2004, according to the document No. (2004) 223 “Decision on establishing Shenzheninvestment Holding Co., Ltd.” issued by State-Owned Assets Supervision and AdministrationCommission of Shenzhen Municipal Government, former major shareholder – Shenzhen ConstructionInvestment Holding Company with two assets management companies merged to form the ShenzhenInvestment Holding Co., Ltd. By the State-owned Assets Supervision and Administration Commissionof the state council, and quasi-exempt obligations tender offer as approved by China SecurityRegulatory Committee with document No. (2005)116, this issue of consolidated has been authorizedand the change in registration had been completed on 15 February 2006. At the end of the reportingperiod, Shenzhen Investment Holding Limited holds 642,884,262 shares of the Company (63.55% ofthe total share capital). The shares are all tradable unrestricted shares.The Company has established the corporate governance structure of the general meeting ofshareholders, the board 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 inreal estate development and sales, property leasing and management, retail merchandising and trade,hotel, equipment installation and maintenance, construction, interior decoration, etc.
These financial statements and notes to the financial statements were approved by the Board ofDirectors of the Group at the 64
th
Board meeting dated on 27 August 2021.
For details about the scope of consolidated statements, please refer to Note IX “Interests in otherentities”.Refer to Note VIII and IX for changes in consolidation scope in current period.
IV. The Basis of Preparation of Financial Statements
1. Basis of preparation
The financial statements are prepared in accordance with the Accounting Standards for BusinessEnterprises and corresponding application guidance, interpretations and other related provisions issuedby the Ministry of Finance (collectively, " Accounting Standards for Business Enterprises "). Inaddition, the Group also discloses relevant financial information in accordance with the ChinaSecurities Regulatory Commission's "Information Disclosure and Reporting Rules for Companies thatPublic 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, thefinancial statements are prepared under the historical cost convention. In the event that impairment ofassets occurs, a provision for impairment is made accordingly in accordance with the relevantregulations.
2．Going concern
These 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 therevenue recognition policy. Please refer to Note V.39 “Revenue” for specific accounting policy.
1. Statement of compliance with the Accounting Standards for Business Enterprises
The 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 30June 2021 and the Group’s and the Company’s operating results and cash flows for the half-year ended30 June 2021.
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 Renminbi (“RMB”) as theirfunctional currency. Offshore subsidiaries, Great Wall Real Estate Co. LTD, determine American dollaras their functional currency according to the primary economic environment where they operate. Thefinancial statements of the Group have been prepared in RMB.
5. Accounting treatments for business combinations involving enterprises under common control andbusiness combinations not involving enterprises under common control
（1）Business combinations involving enterprises under common controlFor a business combination involving enterprises under common control, the assets acquired andliabilities assumed are measured based on their carrying amounts in the consolidated financialstatements of the ultimate controlling party at the combination date, except for adjustments due todifferent accounting policies. The difference between the carrying amount of the net assets acquiredand the consideration paid for the combination is adjusted against share premium in the capital reserve,with any excess adjusted against retained earnings.Business combination involving enterprises under common control through step by step multipletransactions.In individual financial statements, the share of the net assets of the consolidated party in the book valueof the consolidated financial statements of the ultimate controlling party of the net assets of theconsolidated party on the consolidation date, calculated by the shareholding ratio on the consolidationdate, shall be taken as the initial investment cost of the investment; the difference between the initialinvestment cost and the sum of the book value of the investment held before the merger plus the bookvalue of the newly consideration paid shall be adjusted for the capital reserve. If the capital reserve isinsufficient to be written down, the retained earnings shall be adjusted.In the consolidated financial statement, the assets and liabilities of the consolidated party shall bemeasured according to the book value of the consolidated financial statement of the ultimatecontrolling party on the merger date, except for the adjustment due to different accounting policies; thebalance between the book value of the investment held before the merger and the book value of thenewly consideration paid and the book value of the net assets obtained during the merger shall beadjusted for capital reserves. If the capital reserves are insufficient to be written down, the retainedearnings shall be adjusted. For long-term equity investment held by the merging party prior to acquiringcontrol of the merged party, the relevant profit and loss, other comprehensive income and otherchanges in owners' equity which have been recognized by the merging party from later of the date onwhich the original equity was acquired and the date on which the merging party and the merged partyare 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 controlFor business combinations involving enterprises not under common control, the consideration costs
include acquisition-date fair value of assets transferred, liabilities incurred or assumed and equitysecurities issued by the acquirer in exchange for control of the acquiree. At the acquisition date, theacquired assets, liabilities and contingent liabilities of the acquiree are measured at their fair value. Theacquiree’s identifiable asset, liabilities and contingent liabilities, are recognised at their acquisition-datefair value.Where the combination cost exceeds the acquirer’s interest in the fair value of the acquiree’s identifiablenet assets, the difference is recognised as goodwill, and subsequently measured on the basis of its costless accumulated impairment provisions. Where the combination cost is less than the acquirer’s interestin the fair value of the acquiree’s identifiable net assets, the difference is recognised in profit or loss forthe current period after 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 thepurchaser before the purchase date and the cost of the newly added investment on the purchase date istaken as the initial investment cost of the investment. If other comprehensive income of equityinvestment held before the purchase date is recognized by using the equity method, such othercomprehensive income will not be treated on the purchase date, and the investment will be treated onthe same basis as the direct disposal of relevant assets or liabilities by the invested entity. The owners'equity recognized as a result of changes in owners' equity other than net profit and loss, othercomprehensive income and profit distribution of the investee shall be transferred to the current profitand loss during the disposal period at the time of disposal of the investment. If the equity investmentheld before the purchase date is measured at fair value, the accumulated change in fair value originallyrecorded 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 onthe purchase date and the fair value on the purchase date of the equity held by the Purchaser prior tothe purchase date. For the equity held by the Purchaser before the purchase date, it shall bere-measured according to the fair value of the equity on the purchase date, and the difference betweenthe fair value and the book value shall be recorded into the current income; The equity held by thePurchaser before the purchase date involves other comprehensive income, and other changes inowners' equity turn into current income on the purchase date, except for other comprehensive incomegenerated by changes in net liabilities or net assets of the remeasured income plan of the investee.
（3）Transaction costs for business combination
The overhead for the business combination, including the expenses for audit, legal services, valuationadvisory, and other administrative expenses, are recorded in profit or loss for the current period whenincurred. The transaction costs of equity or debt securities issued as the considerations of businesscombination are included in 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 haspower over the investee; exposure, or rights to variable returns from its involvement with the investee
and has the ability to affect its returns through its power over the investee. A subsidiary is an entity thatis controlled by the Group (including enterprise, a portion of an investee as a deemed separatecomponent, and structured entity controlled 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 ofthe Group and its subsidiaries and other relevant information. When preparing consolidated financialstatements, the accounting policies and accounting periods of the subsidiaries should be consistentwith those established by the Group, and all significant intra-group balances and transactions areeliminated.Where a subsidiary or business was acquired during the reporting period, through a businesscombination involving enterprises under common control, the financial statements of the subsidiary orbusiness are included in the consolidated financial statements as if the combination had occurred at thedate that the ultimate controlling party first obtained control.Where a subsidiary or business was acquired during the reporting period, through a businesscombination involving enterprises not under common control, the identifiable assets and liabilities ofthe acquired subsidiaries or business are included in the scope of consolidation from the date thatcontrol commences.The portion of a subsidiary’s equity that is not attributable to the parent is treated as non-controllinginterests and presented separately in the consolidated balance sheet within shareholders’ equity. Theportion of net profit or loss of subsidiaries for the period attributable to non-controlling interests ispresented separately in the consolidated income statement below the “net profit” line item. When theamount of loss for the current period attributable to the non-controlling shareholders of a subsidiaryexceeds the non-controlling shareholders’ share of the opening owners’ equity of the subsidiary, theexcess 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 shareholdersor disposes of a portion of an interest in a subsidiary without a change in control, the transaction istreated as equity transaction, and the book value of shareholder’s equity attributed to the Group and tothe non-controlling interest is adjusted to reflect the change in the Group’s interest in the subsidiaries.The difference between the proportion interests of the subsidiary’s net assets being acquired ordisposed and the amount of the consideration paid or received is adjusted to the capital reserve in theconsolidated balance sheet, with any excess adjusted to retained earnings.
（4）Disposal of subsidiaries
When the Group loses control over a subsidiary because of disposing part of equity investment orother reasons, the remaining part of the equity investment is re-measured at fair value at the date whenthe control is lost. A gain or loss is recognised in the current period and is calculated by the aggregateof consideration received in disposal and the fair value of remaining part of the equity investmentdeducting the share of net assets in proportion 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 thecontrol is lost, except for the comprehensive income arising from the movement of net liabilities orassets in the former subsidiary’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 Groupclassifies joint 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, andobligations for the liabilities, relating to the arrangement.The Group recognizes the following items relating to its interest in a joint operation, and account forthem in accordance 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 investmentin joint venture.
8. Cash and cash equivalents
Cash comprises cash in hand and deposits that can be readily withdrawn on demand. Cash equivalentsinclude short-term, highly liquid investments that are readily convertible to known amounts of cashand are subject to an 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 spotexchange rates on the dates of the transactions.Monetary items denominated in foreign currencies are translated to Renminbi at the spot exchange rateat the balance sheet date. The resulting exchange differences between the spot exchange rate on balancesheet date and the spot exchange rate on initial recognition or on the previous balance sheet date arerecognised in profit or loss. Non-monetary items that are measured at historical cost in foreigncurrencies are translated to Renminbi using the exchange rate at the transaction date. Non-monetaryitems that are measured at fair value in foreign currencies are translated using the exchange rate at thedate the fair value is determined. The resulting exchange differences are recognised in profit or loss.
（2）Translation of foreign currency financial statements
When translating the foreign currency financial statements of overseas subsidiaries, assets and liabilitiesof foreign 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 thetransaction 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 thecash flow occurence dates. Effect of foreign exchange rate changes on cash and cash equivalents ispresented separately as “Effect of foreign exchange rate changes on cash and cash equivalents” in thecash flow statement.The resulting translation differences are recognised in other comprehensive income in shareholders’equity of balance sheet.The translation differences accumulated in shareholders’ equity with respect to a foreign operation aretransferred to 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 financialliability or 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:
①
the contractual rights to the cash flows from the financial asset expire; or
②
The 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) isdischarged or cancelled or expires. If the Group (as a debtor) makes an agreement with the creditor toreplace the current financial liability with assuming a new financial liability, and contractual provisionsare different in substance, the current financial liability is derecognized and a new financial liability isrecognized.If the financial assets are traded regularly, the financial assets are recognized and derecognized at thetransaction date.
（2）Classification and measurement of financial assets
The Group classifies financial assets as subsequently measured at amortized cost, fair value throughother comprehensive income or fair value through profit or loss at initial recognition on the basis ofboth the entity’s business model for managing the financial assets and the contractual cash flowcharacteristics of the financial asset.Financial assets measured at amortized costThe Group classifies the financial assets that meet the following conditions and are not designated asmeasured at 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
the target;? The contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.After the initial recognition, the effective interest rate method is adopted to measure the amortized costof such financial assets. Gains or losses arising from financial assets that are measured at amortizedcost and are not part of any hedging relationship shall be recorded in the current profit or loss whenthe recognition is terminated, amortized according to the effective interest method or the impairment isrecognized.Financial assets measured at fair value through other comprehensive incomeThe Group classifies the financial assets that simultaneously meet the following conditions and are notspecified as measured at fair value through profit or loss as financial assets measured at fair valuethrough other comprehensive income:
? The Group's business model of managing the financial asset aims at both collecting the contract
cash flow and selling the financial asset.? The contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.After the initial recognition, this type of financial assets are subsequently measured at fair value. Theinterest, impairment loss or gain and exchange loss or gain calculated using the effective interest rate
method are included in the current profit or loss, while other gains or losses are included in othercomprehensive income. When derecognized, the accumulated gains or losses previously recorded inother comprehensive income shall be transferred out from other comprehensive income and recordedin the current profit or loss.Financial assets measured at fair value through profit or lossIn addition to the above financial assets measured at amortized cost and measured at fair value throughother comprehensive income, the Group classifies all other financial assets as financial assets measuredat fair value through profit or loss. At the time of initial recognition, in order to eliminate orsignificantly reduce accounting mismatches, the Group irrevocably designates some financial assets thatshould have been measured at amortized cost or measured at fair value through other comprehensiveincome as financial assets measured at fair value through profit or loss.After the initial recognition, this kind of financial asset is subsequently measured at its fair value, andthe gains or losses (including interest and dividend income) generated are recorded into the currentprofit or loss, unless the financial asset is part of the hedging relationship.However, for non-trading equity instrument investment, the Group irrevocably designates it as afinancial asset measured at fair value through other comprehensive income at the time of initialrecognition. The designation is made on a single investment basis and the relevant investments meetthe definition of an equity instrument from issuer's perspective.After the initial recognition, this kind of financial assets are subsequently measured at fair value.Satisfied dividend income is included in the profit or loss, other gains or losses and changes in fair valueare included in other comprehensive income. When derecognized, the accumulated gains or lossespreviously recorded in other comprehensive income are transferred out and recorded in retainedearnings.The business model of managing financial assets refers to how the group manages financial assets togenerate cash flows. The business model determines whether the cash flow from the financial assetsunder management of the Group is derived from the receipt of contractual cash flows, the sale offinancial assets or a combination of both. The Group determines its business model for managingfinancial assets on the basis of objective facts and the specific business objectives for the managementof financial assets determined by key management personnel.The Group assesses the contractual cash flow characteristics of financial assets to determine whetherthe contractual cash flows generated by the relevant financial assets on specified dates are solelypayments of principal and interest on the principal amount outstanding. Principal refers to the fairvalue of financial assets at initial recognition. Interest includes consideration for the time value ofmoney, the credit risk associated with the amount of principal outstanding over a given period, andother basic lending risks and costs, as well as a profit margin. In addition, the Group assessescontractual terms that may cause a change in the time distribution or amount of the contractual cashflows of financial assets to determine whether they meet the requirements of the above contractualcash flow characteristics.Only when the Group changes the business model of managing financial assets, all affected relatedfinancial assets shall be reclassified on the first day of the first reporting period after the change of thebusiness 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 fair value through profit or loss, relevant transaction costs are directly recorded intocurrent profit or loss; for other classes of financial assets, the relevant transaction costs are included inthe initial recognition amount. For accounts receivable arising from the sale of products or provisionof services, which do not contain or do not take into account the material financing component, theGroup is entitled to collect the consideration amount as expected 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: financialliabilities measured at fair value through current profit or loss, and financial liabilities measured atamortized cost. For financial liabilities that are not classified as measured at fair value through profit orloss, relevant transaction costs are included in their initial recognized amounts.Financial liabilities measured at fair value through profit or lossFinancial liabilities measured at fair value through profit or loss include trading financial liabilities andfinancial liabilities designated at the time of initial recognition as measured at fair value through profitor loss. For such financial liabilities, the subsequent measurement shall be made according to the fairvalue, and the gains or losses caused by changes in the fair value as well as the dividends and interestexpenses related to such financial liabilities 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 equityinstruments.
④ a derivative contract in which the firm's own equity instruments are to be settled or used in thefuture, except for a derivative contract in which a fixed number of its own equity instruments are to beexchanged for a fixed amount of cash or other financial assets.An equity instrument is a contract that certifies ownership of the remaining interest in an enterprise'sassets after all 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,consideration needs to be given to whether the Group's own equity instrument used to settle theinstrument is to be used as a substitute for cash or other financial assets or to give the holder of theinstrument the remaining interest in the Issuer's assets after deduction of all liabilities. If the former,the instrument is a financial liability of the group; If it is the latter, the instrument is an equityinstrument of the Group.
（4）Fair value of financial instruments
For the determination of fair value of financial assets and financial liabilities, see Note V. 37 “Fairvalue measurement”.
（5）Impairment of financial assets
On the basis of expected credit losses, the Group conducts impairment accounting treatment for thefollowing items 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 andloss, except the financial asset transfer does not meet the conditions for termination of recognition orcontinues to involve the transferred financial asset).Measurement of expected credit lossesThe term "expected credit loss" refers to the weighted average of the credit loss of a financialinstrument weighted by the risk of default. Credit loss refers to the difference between all contractualcash flows receivable under the contract and all cash flows expected to be collected by the Groupdiscounted at the original effective interest rate, that is, the present value of all cash shortages.The Group calculates the probabilistic weighted amount of the present value of the difference betweenthe cash flows receivable under the Contract and the cash flows expected to be received and recognizesthe expected credit loss, taking into account reasonable and evidential information concerning pastevents, current conditions and Itemions of future economic conditions, and weighting the risk ofdefault.he Group measures the expected credit losses of financial instruments at different stages. If the creditrisk of the financial instrument has not increased significantly since the initial recognition, the Groupshall measure the loss provision in accordance with the expected credit loss in the next 12 months inthe first stage;If the credit risk of a financial instrument has increased significantly since the initialrecognition but no credit impairment has occurred, it is in the second stage, and the Group measuresthe loss provision according to the expected credit loss of the entire life period of the instrument; Ifcredit impairment has occurred to a financial instrument since its initial recognition, it is in the thirdstage, and the Group shall measure the loss provision according to the 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 thecredit risk has not increased significantly since the initial recognition, and measures the loss provision inaccordance with the expected credit loss for the next 12 months.The term "expected credit loss over the entire expected life of a financial instrument" refers to theexpected credit loss resulting from all possible events of default during the entire expected life of afinancial instrument. The expected credit loss within the next 12 months refers to the expected creditloss caused by the default event of the financial instrument that may occur within 12 months after thedate of the balance sheet (or the expected duration of the financial instrument if the expected durationof the financial instrument is less than 12 months) and is part of the expected credit loss over theentire maturity period.When measuring expected credit losses, the Group shall take into account the longest contract period(including the 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 provisionsand the effective interest rate for financial instruments in stage I and stage II and with lower credit risk.For financial instruments in the third stage, the interest income is calculated on the basis of theamortized cost of the book balance less the impairment provision and the effective interest rate.For notes receivable, accounts receivable and contract assets, regardless of whether there is a materialfinancing component, the Group always measures its loss provision in accordance with the amountequivalent to the expected credit loss within the whole duration period.When a single financial asset cannot assess the information of expected credit loss at a reasonable cost,the Group divides the notes receivable and accounts receivable into portfolios according to the creditrisk characteristics, calculates the expected credit loss on the basis of the portfolios, and determines theportfolios based on the following:
A. Notes receivable? Notes receivable portfolio 1: banker's acceptance? Notes receivable portfolio 2: commercial acceptance billsB. 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 Construction
For the notes receivable and contract assets divided into portfolios, the Group calculates the expectedcredit loss through default risk exposure and the expected credit loss rate over the entire duration byreferring to the historical credit loss experience, combining the current situation and the forecast of thefuture economic situation.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 acomparison table between the age of receivables/overdue days and the expected credit loss rate of theentire duration period to calculate the expected credit loss.Other receivablesThe Group divides other receivables into several portfolios according to the credit risk characteristics,and calculates the expected credit loss on the basis of the portfolio. The basis for determining theportfolio is as follows:
? 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 defaultrisk exposure and the expected credit loss rate over the next 12 months or the entire duration.Debt investment and Other debt investment
For debt investment and other debt investment, the Group calculates the expected credit loss based onthe default risk exposure and the expected credit loss rate within the next 12 months or the entireduration according to the nature of the investment and the various types of counterparties and riskexposures.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 ofdefault on the initial recognition date, the Group determines the relative change of default risk withinthe expected duration of financial instruments, so as to evaluate whether the credit risk of financialinstruments has significantly increased since the initial recognition.In determining whether credit risk has increased significantly since the initial recognition, the Groupconsiders reasonable and informed information, including forward-looking information that can beobtained without unnecessary 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
that has 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 environmentwhich will 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 financialinstruments. When assessing on the basis of a portfolio of financial instruments, the Group mayclassify financial instruments based on common credit risk characteristics, such as overdueinformation and credit risk rating.If overdue for more than 30 days, the Group determines that the credit risk of the financial instrumenthas increased 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
into account 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 financialassets measured at amortized cost and debt investments measured at fair value and whose changes areincluded in other comprehensive income. When one or more events which have an adverse effect onthe expected future cash flow of a financial asset occur, the financial asset becomes a financial assetwith credit impairment. Evidence of credit impairment of financial assets includes the followingobservable 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
the financial asset.Presentation of expected credit loss provisionsIn order to reflect the change of the credit risk of financial instruments since the initial recognition, theGroup re-measures the expected credit loss on each balance sheet date, and the increase or rolleback
amount of the loss provision thus formed shall be recorded into the current profit and loss as animpairment loss or profit. For a financial asset measured at amortized cost, the loss provision shalloffset the carrying value of the financial asset as stated in the balance sheet; For the debt investmentmeasured at fair value and its changes included in other comprehensive income, the Group recognizesits loss provision in other comprehensive income and does not deduct the book value of the financialasset.Written-offIf the Group no longer reasonably expects that the contractual cash flow of a financial asset can berecovered in whole or in part, the carrying balance of the financial asset shall be directly written down.Such writedowns constitute termination recognition of the relevant financial assets. This usually occurswhen the Group determines that the debtor does not have assets or sources of income that generatesufficient cash flow to repay the amount to be written down. However, in accordance with the Group'sprocedures for recovering amounts due, the financial assets that have been written down may still beaffected by the execution activities.If a financial asset that has been written down is recovered later, it shall be carried back as animpairment loss and 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)other than the issuer of financial assets.A financial asset is derecognised if the Group transfers substantially all the risks and rewards ofownership of the financial asset to the transferee. A financial asset is not derecognised if the Groupretains substantially all the risks 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 thefinancial asset, and the accounting treatment is shown as following: if the Group has forgone controlover the financial asset, the financial assets is derecognized, and new assets and liabilities are recognized.If the Group retains control over the financial asset, the financial asset is recognised to the extent of itscontinuing involvement in the transferred 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, andis currently able to enforce such legal right, and the Group plans to settle the financial asset on a netbasis or simultaneously realize the financial asset and pay off the financial liability, the financial assetand financial liability shall be shown in the balance sheet with the offset amount. In addition, financialassets and financial liabilities shall be separately presented in the balance sheet and shall not be set offagainst each other.
11. Notes Receivable
Please refer to Notes V.10 Financial Instrument (5) Impairment of Financial Asset.
12. Accounts Receivable
Please refer to Notes V.10 Financial Instrument (5) Impairment of Financial Asset.
13. Accounts receivable financing
14、Other receivables
Determination method and accounting treatment method of expected credit loss of other receivablesPlease refer to Note V 10. financial instruments (5) Impairment of financial assets
15、Inventories
（1）Classification
The Group's inventory is classified by real estate development and non-real estate development.Inventory is mainly real estate development projects, including development costs and developmentproducts. Development cost include the development costs of development products to be developedand development products under construction. Development products include completed developmentproducts and development products intended for sell but temporarily leased. Non-real estatedevelopment projects include raw materials, finished goods and engineering construction.
（2）Mesurement method of cost of inventories
The group’s inventories are measured at actual cost when acquired. The actual cost of developing aproduct includes land transfer fee, infrastructure expenditure, construction and installation projectexpenditure, borrowing expenses incurred before the completion of the development project and otherrelated expenses in the development process.。When a product is developed and shipped, the actualcost is determined by specific identification 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 estimatedcosts of completion and the estimated costs necessary to make the sale and relevant taxes. The netrealisable value is measured based on the verified evidences and considerations for the purpose ofholding inventories and the effect of post balance sheet events.Any excess of the cost over the net realisable value of of inventories is recognised as a provision forobsolete inventories, and is recognised in profit or loss. The Group usually recognises provision fordecline in value of inventories by a single inventory item. If the factors caused the value of inventorypreviously written-down have disappeared, the provision for decline in value of inventories previouslymade 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. Contractual assets
17．Contract costsContract costs include incremental costs incurred to obtain the contract and contract performancecosts.Incremental costs incurred to obtain a contract are costs (such as sales commissions, etc.) that theGroup would not have incurred without the contract.If the cost is expected to be recovered, the Groupwill recognize it as an asset as the contract acquisition cost.Other expenses incurred by the Group forthe acquisition of contracts, other than the incremental costs expected to be recovered, are recordedinto the profit and loss of the current period when incurred.If the cost incurred for the performance of the contract does not fall within the scope of accountingstandards for inventories and other enterprises and meets the following conditions at the same time, theGroup will recognize it as an asset as the contract performance cost:
① The costs are directly related to a current or prospective contract and include direct labor, directmaterials, overhead (or similar), costs that are expressly borne by the customer and other costs incurredsolely in connection 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 asincome recognition of goods or services related to such assets and shall be recorded into current profitand loss. If the amortization period does not exceed one year, it will be recorded in the current profitand loss at the time of occurrence.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 itas impairment loss of the assets:
① the remaining consideration that the Group is expected to obtain as a result of the transfer of thegoods or services 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 initialrecognition, while the amortization period exceeding one year or one normal operating cycle at the timeof initial recognition shall 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 CurrentAssets" with an amortization period of less than one year or one normal operating cycle at the time ofinitial recognition, and shall be shown in the item of "Other Non-current Assets" with an amortizationperiod of more than one year or one normal operating cycle at the time of initial recognition.18．Assets held for sale19．Debt investment20．Other debt investment
21、Long-term accounts receivable
22、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 involvingenterprises under common control is the Group’s share of the carrying amount of the subsidiary’sequity in the consolidated financial statements of the ultimate controlling party at the combination date.For a long-term equity investment obtained through a business combination not involving enterprisesunder common control, the initial cost is the combination 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 ofcash paid if the Group acquires the investment by cash, or at the fair value of the equity securitiesissued if an investment is 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 investmentin a joint venture or an associate is accounted for using the equity method for subsequentmeasurement.For a long-term equity investment which is accounted for using the cost method, Except for cashdividends or profit distributions declared but not yet distributed that have been included in the price orconsideration paid in obtaining the investments, the Group recognises its share of the cash dividendsor profit distributions declared by 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 initialcost of a long-term equity investment exceeds the Group’s interest in the fair value of the investee’sidentifiable net assets at the date of acquisition, the investment is initially recognised at cost. Where theinitial investment cost is less than 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 the investor’s share of the fairvalue of the investee’s identifiable net assets, 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
comprehensive income as investment income or losses and other comprehensive income respectively,and adjusts the carrying amount of the investment accordingly. Once the investee declares any cashdividends or profit distributions, the carrying amount of the investment is reduced by the amountattributable to the Group. Changes in the Group’s share of the investee’s owners’ equity, other thanthose arising from the investee’s net profit or loss, other comprehensive income or profit distribution(referred to as “other changes in owners’ equity”), is recognised directly in the Group’s equity, and thecarrying amount of the investment is adjusted accordingly. In calculating its share of the investee’s netprofits or losses, other comprehensive income and other changes in owners’ equity, the Grouprecognises 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 valueof the investee’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 an investee due to additional investment or other reasons, the Group uses the fair value of thepreviously-held equity investment, together with additional investment cost, as the initial investmentcost under the equity method. The difference between the fair value and carrying amount of thepreviously-held equity investment, and the accumulated changes in fair value included in othercomprehensive income, shall be transferred to profit or loss for the current period uponcommencement of the equity method.When the Group can no longer exercise control over an investee due to partial disposal of the equityinvestment or other reasons, and the remaining equity after disposal can exercise joint control of orsignificant influence over an investee, the remaining equity is adjusted as using equity method fromacquisition. When the remaining equity can no longer exercise joint control of or significant influenceover an investee, the remaining equity investment shall be accounted for using Accounting Standard forBusiness Enterprises No. 22-Recognition and Measurement of Financial Instruments, and thedifference between the fair value and the carrying amount of the remaining equity investment shall becharged 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 otherinvestors, and the Group can exercise joint control of or significant influence over an investee, theGroup recognizes its share of the investee’s new added net assets using new shareholding percentage.The difference between its new share of the investee’s new added net assets and its decreasedshareholding percentage of the original investment is recognized in profit or loss. And the Groupadjusts to the equity method using the new shareholding percentage as if it uses the equity methodsince it obtains the investment.Unrealised profits and losses resulting from transactions between the Group and its associates or jointventures are eliminated to the extent of the Group’s interest in the associates or joint ventures.Unrealised losses resulting from transactions between the Group and its associates or joint ventures areeliminated in the same way as unrealised 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 investee
Joint control is the contractually agreed sharing of control of an arrangement, which exists only whendecisions about the relevant activities require the unanimous consent of the parties sharing control.When assessing whether the Group can exercise joint control over an investee, the Group firstconsiders whether no single participant party is in a position to control the investee’s related activitiesunilaterally, and then considers whether strategic decisions relating to the investee’s related activities
require the unanimous consent of all participant parties that sharing of control. All the parties, or agroup of the parties, control the arrangement collectively when they must act together to direct therelevant activities. When more than one combination of the parties can control an arrangementcollectively, joint control does not exist. A party that holds only protective rights does not have jointcontrol of the arrangement.Significant influence is the power to participate in the financial and operating policy decisions of aninvestee but does not have control or joint control over those policies. When determining whether theGroup can exercise significant influence over an investee, the effect of potential voting rights (forexample, warrants, share options and convertible bonds) held by the Group or other parties that arecurrently exercisable or convertible shall be considered.When the Group, directly or indirectly through subsidiaries, owns 20% of the investee (including 20%)or more but less than 50% of the voting shares, it has significant influence over the investee unlessthere is clear evidence to show that in this case the Group cannot participate in the production andbusiness decisions of the investee, and cannot form a significant influence. When the Group owns lessthan 20% of the voting shares, generally it does not have significant influence over the investee, unlessthere is clear evidence to show that in this case the Group can participate in the production andbusiness decisions of the investee so as to form a significant influence.
（4）Method of impairment testing and impairment provision
For investments in subsidiaries, associates and joint ventures, refer to Note V. 31 for the Group’smethod of asset impairment.
23. Investment property
Investment property measurement methodCost methodDepreciation or amortization methodInvestment properties are properties held either to earn rental income or for capital appreciation or forboth. The Group’s investment properties include leased houses, leased buildings, leased land use rights.In addition, for a vacant building held by the company for operating lease, if the board of directors (ora similar institution) makes a written resolution expressly indicating that it is used for operating leaseand the intention of holding does not change in the short term, it is also considered as Investmentproperty.Investment properties are initially measured at acquisition cost, and depreciated or amortized using thesame policy as that for fixed assets or intangible assets.For the impairment of the investment properties accounted for using the cost model, refer to NoteV.31 Impairment of long-term asset.The balance of the disposal income from the sale, transfer, scrapping or damage of the investment realestate after deducting its book value and relevant taxes and fees shall be recorded into the current profitand loss.
24. Fixed assets
（1）Recognition of fixed assets
Fixed assets represent the tangible assets held by the Group for use in production of goods, use insupply of services, 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 andits cost can be reliably measured.Fixed asset are initially measured at cost.
（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 the fixed asset is classified as held for sale. Not considering impairment provision, the estimateduseful lives, residual value rates and depreciation rates of each class of fixed assets are as table above.For impaired fixed assets, cumulative amount of impairment provision is deducted in determining thedepreciation rate.
（3）Recognition, measurement and depreciation of fixed assets acquired under finance leases
Fixed assets under finance leases are recognised if they meet one or more of the following criteria: ①The ownership of leased assets is transferred to the Company by the end of the lease term. ②TheCompany has the option to purchase the asset at a price that is expected to be sufficiently lower thanthe fair value at the date of the option becomes exercisable for it to be reasonably certain, at theinception of the lease, that the option will be exercised. ③Even if the ownership of assets is nottransferred, the lease term covers the major part of the useful life of the asset. ④At the inception oflease, the present value of minimum lease payments amount to substantially all of the fair value ofleased asset. ⑤Leased assets are of a specialized nature that only the Company can use them withoutmajor modifications.An asset acquired under a finance lease is measured at an amount equal to the lower of its fair value
and the present value of the minimum lease payments, each determined at the inception of the lease.Long-term payable is recorded at an amount equal to the sum of all future minimum lease payments.The difference between the carrying amount of the leased assets and the minimum lease payments isaccounted for as unrecognised finance charges. Initial direct costs attributable to a finance leaseincurred during the process of lease negotiation and the signing of the lease agreement, includingservice charges, attorney's fees, travelling expenses and stamp duty, that are incurred by the Companyare added to the carrying amount of the leased asset. Unrecognised finance charges are recognised asfinance charge for the period using the effective interest method over the lease term.Depreciation is accounted for in accordance with the accounting policies of fixed assets. If there isreasonable certainty that the Company will obtain ownership of a leased asset at the end of the leaseterm, the leased asset is depreciated over its estimated useful life. Otherwise, the leased asset isdepreciated over the shorter of the lease term and its estimated useful life.
（4）Impairment of the fixed assets and other
For the impairment of the fixed assets, please refer to NoteV.31.
（5）Useful lives, estimated residual values and depreciation methods are reviewed at least at eachyear-end.
The Group adjusts the useful lives of fixed assets if their expected useful lives are different with theoriginal estimates and adjusts the estimated net residual values if they are different from the originalestimates.
（6）Overhaul cost
Overhaul costs occurred in regular inspection are recognized in the cost if there is undoubted evidenceto confirm that this part meets the recognition criteria of fixed assets, otherwise, the overhaul costs arerecognized in profit or loss for the current period. Depreciation is provided during the period ofregular overhaul.
25、Construction in progress
Construction in progress is recognized based on the actual construction cost, including all expendituresincurred for construction Items, capitalised borrowing costs and any other costs directly attributable tobringing the asset to 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.31 Impairment of assets.
26. Borrowing costs
（1）Capitalisation criteria
Borrowing costs that are directly attributable to the acquisition, construction or production of aqualifying asset shall be capitalised as part of the cost of that asset. Other borrowing costs areexpensed in profit or loss as incurred. The capitalisation of borrowing costs shall commence only whenthe following criteria are met:
①capital expenditures have been incurred, including expenditures that have resulted in payment ofcash, 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.（
）Capitalisation periodThe capitalisation of borrowing costs ceases when the asset under acquisition or construction becomesready for its intended use, the borrowing costs incurred thereafter are recognised in profit or loss forthe current period.Capitalisation of borrowing costs is suspended during periods in which the acquisition or constructionof a fixed asset is interrupted abnormally and the interruption lasts for more than 3 months, until theacquisition or construction 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 netamount of the borrowing costs after deducting any investment income earned before some or all ofthe funds are used for expenditures on the qualifying asset. To the extent that the Group borrowsfunds generally and uses them for the purpose of obtaining a qualifying asset, the Group shalldetermine the amount of borrowing costs eligible for capitalisation by applying a capitalisation rate tothe expenditures on that asset, the capitalisation rate shall be the weighted average of the borrowingcosts applicable to the borrowings of the Group that are outstanding during the period, other thanborrowings specifically for the purpose of obtaining a qualifying asset.In the capitalisation period, exchange differences of specific borrowings in foreign currency shall becapitalised; exchange differences of general borrowings in foreign currency is recognised in profit orloss for the current period.
27. Biological assets
28. Oil and gas assets
29. Use rights assets
30. 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 determinedat the point of acquisition. When the useful life is finite, amortisation method shall reflect the patternin which the asset’s economic benefits are expected to be realised. If the pattern cannot be determinedreliably, the straight-line method shall be used. An intangible asset with an indefinite useful life shall notbe amortised.The Group shall review the useful life and amortisation method of an intangible asset with a finiteuseful life at least at each year end. Changes of useful life and amortisation method shall be accountedfor as a change in accounting estimate.An intangible asset shall be derecognised in profit or loss when it is not expected to generate futureeconomic benefits.For the impairment of intangible assets, please refer to Note V.31 Impairment of Assets.
（2）Accounting policy for internal research and development expenditure
31. Impairment of assets
The impairment of long-term equity investments in subsidiaries, associates and joint ventures,investment properties measured using a cost model, fixed assets, construction in progress, productivebiological assets measured using a cost model, intangible assets, goodwill, proven oil and gas miningrights and wells and related facilities, etc. (Excluding inventories, investment property measured using afair value model, deferred tax assets and financial assets) is determined as follows:
At each balance sheet date, the Group determines whether there is any indication of impairment. Ifany indication exists, the recoverable amount of the asset is estimated. In addition, the Group estimatesthe recoverable amounts of goodwill, intangible assets with indefinite useful lives and intangible assetsnot ready for 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 valueof expected future cash flows. The recoverable amount is estimated for each individual asset. If it isnot possible to estimate the recoverable amount of each individual asset, the Group determines the
recoverable amount for the asset group to which the asset belongs. An asset group is the smallestidentifiable group of assets that generates cash inflows that are largely independent of the cash inflowsfrom other assets or asset groups.An impairment loss is recognised in profit or loss when the recoverable amount of an asset is less thanits carrying amount. A provision for impairment of the asset is recognised accordingly.For goodwill impairment test, the carrying amount of goodwill arising from a business combination isallocated reasonably to the relevant asset group since the acquisition date. If the carrying amount ofgoodwill is unable to be allocated to asset group, the carrying amount of goodwill will be allocated toasset portfolio. Asset group or portfolio of asset group is asset group or portfolio of asset group whichcan be benefit from synergies of a business combination and is not greater than the reportable segmentof the Group.In impairment testing, if impairment indication exists in asset group or portfolio of asset groupcontaining allocated goodwill, impairment test is first conducted for asset group or portfolio of assetgroup that does not contain goodwill, and corresponding recoverable amount is estimated and anyimpairment loss is recognized. Then impairment test is conducted for asset group or portfolio ofasset group containing goodwill by comparing its carrying amount and its recoverable amount. If therecoverable 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.
32. Long-term deferred expenses
Long-term deferred expenses are recorded at the actual cost, and amortized using a straight-linemethod within the benefit period. For long-term deferred expense that cannot bring benefit in futureperiod, the Group recognized its amortised cost in profit or loss for the current period.
33. Contractual liabilities
34. Employee benefits
（1）Scope of employee benefits
Employee benefits refer to all forms of consideration or compensation given by the Group in exchangefor service rendered by employees or for the termination of employment relationship. Employeebenefits include short-term employee benefits, post-employment benefits, termination benefits andother long-term employee benefits. Benefits provided to the Group’s spouse, children, dependents,family members of deceased employees 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 foremployees based on standard rate, work injury insurance and maternity insurance and other socialinsurance and housing fund incurred and these are recognised as liabilities and corresponding costs in
the profit or loss. If these liabilities are not expected to be fully paid 12 months after the end of thereporting period in which employee renders the service to the Group, and if the financial impact issignificant, these liabilities shall be discounted using the net present value method.
（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 fixedcontributions into a separate fund and will have no future obligations to pay the contributions. Definedbenefit plans are post-employment benefit plans other than defined contribution plans.Defined contribution plansDefined contribution plans include primary endowment insurance, unemployment insurance andcorporate pension plan, etc.Besides basic pension insurance, the Group establishes corporate pension plans in accordance with therelated policies of corporate pension regulations. Employees can join the pension plan voluntarily. TheGroup has no other significant commitment of employees’ social security.The Group shall recognise, in the accounting period in which an employee provides service, thecontribution payable to a defined contribution plan as a liability, with a corresponding charge to theprofit or loss for the current 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 annualbalance sheet date to determine the cost of providing benefits using the expected accrued benefit unitmethod. The employee compensation cost caused by the benefit plan of the Group includes thefollowing components:
① Service cost, including current service cost, past service cost and settlement profit or loss. Including,the current service cost refers to the increase in the present value of the defined benefit plan obligationcaused by the current provision of services by employees; The past service cost refers to the increaseor decrease in the present value of the defined benefit plan obligations related to the employee servicesof the previous period as a result 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 interestincome on the plan assets, the interest expense on the defined benefit plan obligations and the intereston the impact of the asset 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 thecost of assets, the Group will include items ① and ② above in the current profit and loss; Item ③is included in other comprehensive income and will not be turned back to profit and loss in subsequentaccounting periods. When the originally defined benefit plan is terminated, the part originally includedin other comprehensive income 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 employeebenefits liability for termination benefits, with a corresponding charge to the profit or loss for thecurrent period, at the earlier of the following dates: When the Group cannot unilaterally withdraw theoffer of the termination benefits because of an employment termination plan or a redundancyproposal; or when the Group recognises the costs or expenses relating to a restructuring that involvesthe payment of the termination benefits.For employees who implement the internal retirement plan, the economic compensation before theofficial retirement date belongs to dismiss welfare. During the normal retirement date when theemployees stop providing services, the salary and social insurance premium to be paid by the employeeswho retire within the Group shall be included in the profit and loss of the current period in a lumpsum. Economic compensation after the official retirement date (such as the normal pension) shall betreated as after-service benefits.
（4）Other long-term employee benefits
Other long-term employee benefits provided by the Group to the employees satisfied the conditionsfor classifying as a defined contribution plan; those benefits shall be accounted for in accordance withthe above requirements relating to defined contribution plan. When the benefits satisfied a definedbenefit plan, it shall be accounted for in accordance with the above requirements relating to definedbenefit plan, but the movement of net liabilities or assets in re-measurement of defined defined benefitplan shall be recorded in profit or loss for the current period or cost of relevant assets.
35. Lease liabilities
36. Provisions
A provision is recognised for an obligation related to a contingency if all the following conditions aresatisfied:
(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 relatedpresent obligation. Factors pertaining to a contingency such as the risks, uncertainties and time value ofmoney are taken into account as a whole in reaching the best estimate.Where the effect of the timevalue of money is material, provisions are determined by discounting the expected future cash flows.The Group reviews the carrying amount of a provision at the balance sheet date and adjusts thecarrying amount to the current best estimate.If all or part of the expenditure necessary for settling the provision is expected to be compensated by athird party, the amount of compensation is separately recognized as an asset when it is basically certainto be received. The recognized compensation amount shall not exceed the carrying amount of the
provision.
37. 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 areexchanged in an orderly transaction in the principal market; in the absence of a principal market,assuming the assets or liabilities are exchanged in an orderly transaction in the most advantageousmarket. Principal market (or the most advantageous market) is the market that the Group can normallyenter into a transaction on measurement date. The Group adopts the presumptions that would be usedby market participants in achieving the maximized economic value of the assets or liabilities.
For financial assets or financial liabilities with active markets, the Group uses the quoted prices in activemarkets as 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 togenerate economic benefits using the asset in its best way or by selling it to another market participantthat would best use the asset.The Group uses valuation techniques that are appropriate in the circumstances and for which sufficientdata are available to measure fair value, maximizing the use of relevant observable inputs, and usingunobservable inputs only 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 statementsare determined according to the significant lowest level input to the entire measurement: Level 1 inputsare quoted prices (unadjusted) in active markets for identical assets or liabilities that the Group canaccess at the measurement date; Level 2 inputs are inputs other than quoted prices included withinLevel 1 that are observable for the assets or liabilities, either directly or indirectly; Level 3 inputs areunobservable inputs for the assets or liabilities.
At the balance sheet date, the Group revalues assets and liabilities being measured at fair valuecontinuously in the financial statements to determine whether to change the levels of fair valuemeasurement.
38．Share-based payment
39. Preferred stock, perpetual debt and other financial instruments
40. Revenue
The accounting policy used for revenue recognition and measurment
(1) General principles
The Group has fulfilled its contractual obligation to recognize revenue when the customer acquirescontrol of the relevant goods or services.If the contract contains two or more performance obligations, the Group shall, on the commencementdate of the contract, allocate the transaction price to each single performance obligation according tothe relative proportion of the individual selling price of the commodity or service committed by eachsingle performance obligation, and measure the income according to the transaction price allocated toeach single performance obligation.If one of the following conditions is satisfied, the Group shall perform its obligations within a certainperiod of time; 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 atthe same time 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 haveirreplaceable purposes, and the Group has the right to collect payment for the accumulated part of theperformance completed so far during the whole period of the Contract.For the performance obligations performed within a certain period of time, the Group shall recognizethe income in accordance with the performance progress within that period.If the performanceprogress cannot be reasonably determined and the Group is expected to be compensated for the costsalready incurred, the revenue shall be recognized according to the amount of the costs already incurreduntil the performance progress can be reasonably determined.For performance obligations performed at a certain point, the Group recognizes revenue at the pointwhen the customer acquires control of the relevant goods or services.In determining whether acustomer has acquired control of goods or services, the Group will take into account the followingindications:
① The Group has a current right to receive payment for the goods or services, that is, the Customerhas a current obligation to pay for the goods.
② The Group has transferred the legal ownership of the commodity to the customer, that is, thecustomer has the legal ownership of the commodity.
③ The Group has transferred the goods in kind to the customer, that is, the customer has physicalpossession of the goods.
(4) The Group has transferred the main risks and rewards on the ownership of the commodity to thecustomer, that is, the customer has acquired the main risks and rewards on the ownership of thecommodity.
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 thisright depends on other factors other than the passage of time) is a contract asset which is subject toimpairment on the basis of expected credit losses (see Note V, 10 (5)).The Group's right, unconditional(depending only on the passage of time) to collect consideration from customers is shown as areceivable.The Group's obligation to transfer goods or services to customers for which it has receivedor receivable consideration is a contractual liability.The contract assets and contract liabilities under the same contract shall be presented on a net basis. Ifthe net amount is the debit balance, it shall be presented under the item of "Contract Assets" or "OtherNon-current Assets" according to its liquidity;If the net amount is a credit balance, it shall be shownunder 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 the land department; (2) the property developmentis completed and pass the acceptance; (3) For Lump-sum payment, revenue is recognized by the groupwhen the consideration is fully received. For instalment payment, revenue is recognized when the firstinstallment has been received and the bank mortgage approval procedures have been completed. (4)completed the procedures for entering the partnership in accordance with the requirements stipulatedin sale contract.
② The method for recognizing revenue from property services providedAccording to property service contract, agreed service period, area served and unit price, revenue isrecognized evenly within agreed service period.
③ The method for recognizing revenue from rental property
In consideration of agreed lease period, rent free period and total rent, revenue is recognized withinagreed lease period on a straight-line basis.
④ The method for recognizing revenue from construction activitiesAs the customer can control the goods under construction during the performance of the Group, the
group shall recognize the income in accordance with the performance progress within a certain periodof time (except for performance progress cannot be reasonably determined). The group shalldetermine the performance progress based on cost incurred. If the performance progress cannot bereasonably determined and the Group is expected to be compensated for the costs already incurred, therevenue shall be recognized according to the amount of the costs already incurred until theperformance progress can be reasonably determined. If the contract costs cannot be recovered, thecost should be recognized immediately in current period when incurred. When the estimated total costof the contract is likely to exceed the total revenue of the contract, the cost of the main business andthe estimated liabilities shall be recognized in accordance with the unexecuted loss contract. The lossshall be recognized as current cost and put into provisions.
⑤ The method for recognizing revenue from other income
Revenue from other income include income from hotel operations, etc. Room revenue from hoteloperations shall be recognized in accordance with the performance progress within agreed period, asthe client obtains and consumes the economic benefits brought by the Group’s performance and thegroup’s performance obligations has performed at a certain period of time. For other income, thegroup recognizes revenue at the point when the customer acquires control of the relevant goods orservices, which indicate the group has a right to receive payment for services or goods provided inaccordance with the relevant contract.Different business models of the same business will lead to differences in revenue recognition.
41. Government grants
A government grant is recognised when there is reasonable assurance that the grant will be receivedand that the Group 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 amountreceived or receivable. If a government grant is in the form of a transfer of a non-monetary asset, it ismeasured at fair value. If fair value cannot be reliably determined, it is measured at a nominal amountof RMB 1.Government grants related to assets are grants whose primary condition is that the Group qualifyingfor them should purchase, construct or otherwise acquire long-term assets. Government grants relatedto income are grants other than those related to assets.For government grants with unspecified purpose, the amount of grants used to form a long-term assetis regarded as government grants related to an asset, the remaining amount of grants is regarded asgovernment grants related to income. If it is not possible to distinguish, the amount of grants is treatedas government grants related to income.A government grant related to an asset is recognised as deferred income and amortised to profit or lossover the useful life of the related asset on a reasonable and systematic manner. A grant thatcompensates the Group for expenses or losses already incurred is recognised in profit or loss.A grantthat compensates the Group for expenses or losses to be incurred in the future is recognised asdeferred income, and included in profit or loss or offset against related expenses in the periods inwhich the expenses or losses are recognised. The Group applies a consistent approach to same or
similar government grant transactions.A grant related to ordinary activities is recognised as other income based on the economic substance. Agrant not related to ordinary activities is recognised as non-operating income.When a recognised government grant is reversed, carrying amout of the related asset is adjusted if thegrant was initially recognized as offset against the carrying amount of the related asset. If there isbalance of relevant deferred income, it is offset against the carrying amount of relevant deferredincome. Any excess of the reversal to the carrying amount of deferred income is recognised in profitor loss for the current period. For other circumstances, reversal is directly recognized in profit or lossfor the current period.
42、Deferred tax assets and Deferred tax liabilities
Income tax comprises of current tax and deferred tax. Current tax and deferred tax are recognised inprofit or loss except to the extent that they relate to transactions or items recognised directly in equityand goodwill arising 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 financialreporting purposes and their tax bases.All the taxable temporary differences are recognized as deferred tax liabilities except for those incurredin the following transactions:
(1) initial recognition of goodwill, or assets or liabilities in a transaction that is not a businesscombination and that affects neither accounting profit nor taxable profit (or deductible loss);
(2) taxable temporary differences associated with investments in subsidiaries, associates and jointventures, and the Group is able to control the timing of the reversal of the temporary difference and itis probable that the temporary difference will not reverse in the foreseeable future.The Group recognises a deferred tax asset for deductible temporary differences, deductible losses andtax credits carried forward to subsequent periods, to the extent that it is probable that future taxableprofits will be available against which deductible temporary differences, deductible losses and taxcredits 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 nortaxable profit (or deductible loss);
(2) deductible temporary differences associated with investments in subsidiaries, associates and jointventures, the corresponding deferred tax asset is recognized when both of the following conditions aresatisfied: it is probable that the temporary difference will reverse in the foreseeable future; and it isprobable that taxable profits will be available in the future against which the temporary difference canbe utilized.At the balance sheet date, deferred tax is measured based on the tax consequences that would follow
from the expected 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 assetis recovered or the liability is settled.The carrying amount of a deferred tax asset is reviewed at each balance sheet date, and is reduced tothe extent that it is no longer probable that the related tax benefits will be utilised. Such reduction isreversed to the extent that it becomes probable that sufficient taxable profits will be available.
43. Leases
（1）Accounting treatments for operating lease
The Group recognizes leases where all risks and rewards that exist pertaining to the ownership of theasset are simply transferred to the lessee as financial leases. An operating lease is a lease other than afinance lease.For the rent in the operating lease, the Group shall recognize the profits and losses of the currentperiod in accordance with the straight-line method during each period of the lease term. The initialdirect expenses incurred in connection with the operating lease shall be recorded into the current profitand loss.
（2）Accounting treatments for finance lease
At the beginning of the lease period, the group takes the aggregate of the minimum lease receiptsdetermined at the inception of a lease and the initial direct costs as the book value of the receivablefinance lease funds and recognized unguaranteed residual value at the same time. The differencebetween the aggregate of the minimum lease receipts, the initial direct costs and the unguaranteedresidual value, and the aggregate of their present value is recognized as unearned finance income.Unearned finance income is allocated to each accounting period during the lease term using theeffective interest method.When the Company acquires an asset under a finance lease, the asset is measured at an amount equal tothe lower of its fair value and the present value of the minimum lease payments, each determined at theinception of the lease. At the commencement of the lease term, the minimum lease payments arerecorded as long-term payables. The difference between the carrying amount of the leased assets andthe minimum lease payments is accounted for as recognized finance charges. Initial direct costsattributable to a finance lease that are incurred by the Company are added to the carrying amount ofthe leased asset. Unrecognised finance charges arising from a finance lease are 110ecognized using aneffective interest method over the lease term. Depreciation is accounted for in accordance with theaccounting policies of fixed assets.
44. Other significant accounting judgments and estimates
The Group conducts an ongoing evaluation of the significant accounting estimates and keyassumptions used in the light of historical experience and other factors, including reasonableexpectations of future events. Important accounting estimates and key assumptions that are likely to
result in the risk of a material adjustment in the carrying value of assets and liabilities during the nextfiscal year are set out below:
Classification of financial assetsThe Group's major judgments in determining the classification of financial assets include the analysisof business models and contractual cash flow characteristics.The Group determines the business model for the management of financial assets at the level of itsfinancial portfolio, taking into account factors such as the way in which the performance of financialassets is evaluated and reported to key managers, the risks affecting the performance of financial assetsand their management methods, 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 basiclending arrangement, the Group has the following main judgments: whether the time distribution oramount of the principal in the duration period may change due to reasons such as prepayment; Doesinterest include only the time value of money, credit risk, other fundamental borrowing risks, andconsideration for costs and profits? For example, does the prepayment amount only reflect theoutstanding principal and interest based on the outstanding principal and reasonable compensation forearly 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 exposureof accounts receivable and the expected credit loss rate, and determines the expected credit loss ratebased on the default probability and the default loss rate. In determining the expected credit loss rate,the Group uses data such as internal historical credit loss experience, and adjusts the historical data incombination with the current situation and forward-looking information. When consideringforward-looking information, the indicators used by the Group include the risk of an economicdownturn, changes in the external market environment, the technological environment and customerconditions. The Group regularly monitors and reviews assumptions relating to the calculation ofexpected credit losses.Deferred tax assetsDeferred tax assets should be recognized for all unutilized tax losses to the extent that there is likely tobe sufficient taxable profit to offset the loss. This requires management to use a great deal of judgmentto estimate when and how much future taxable profits will occur, in combination with tax planningstrategies, to determine the 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 tomanagement’s estimation which is made based on its understanding of the requirements of relevant taxlaws and regulations. However, the actual LAT is levied by tax authorities according to theinterpretation of the tax rules. The group is not stepping on formulating the final tax plan with relevanttax 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 provision in 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 thecurrent discount rate for Items with similar terms and risk characteristics. This valuation requires theGroup to estimate expected future cash flows and the discount rate and is therefore subject touncertainty. In limited circumstances, if the information used to determine the fair value is insufficient,or if the possible estimates of the fair value are spread over a wide range and the cost represents thebest estimate of the fair value within that range, the cost may represent the appropriate estimate of thefair value within that range.
45. 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）Adjustment of the relevant financial statements in current period due to the implementation of thenew leasing standard implemented initially commencing from 2021Whether to adjust the balance sheet account at the beginning of the year?
□ Yes √ No
The reason for not adjusting balance sheet account t the beginning of the year:
In accordance with the provisions of the new leasing standards, from January 1, 2021, the groupchoose to recognize right-of-use assets and lease liabilities for all leased assets at the present value ofthe minimum lease payment for future rent payable, with the exception of simplified short-term leasesand leases of low-value assets, and to recognize depreciation and interest expenses respectively, withoutadjusting the information for comparable periods.In practice, there are not many leased assets within the group, which is the main reason to simplifyshort-term leases and leases of low-value assets and no longer recognize its right-of-use assets and leaseliabilities.
（4）Note to the retroactive adjustment of the previous comparative data due to the implementation of thenew leasing standard implemented initially commencing from 2021
□ Applicable √ Not Applicable
46. Other
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 | 1.2% |
| 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 treatments
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 taxrate of 20% for small and low-profit enterprises.
3、Other
With regards to revenue from property development, property management and construction activities,from May 1st, 2016, the group’s taxable items and tax rates are shown in the following table, which inaccordance with the relevant regulations of《Notice on comprehensively promoting the trial ofreplacing business tax with Value-Added tax》([2016] No.36).
| Revenue Type | The computation of Tax | Applicable Tax Rate |
| Revenue from property sale | Simplified tax | 5% |
| Revenue from contruction activities | Simplified tax | 9%、3% |
| Rental income | Simplified tax | 5% |
| Revenue from property management | Filing return generally | 6% |
Explanation of corporate income tax rate of different taxpayers:
The corporate income tax rate for companies registered in China is 25% while for companies registeredin Hong Kong is 16.5%.VII. Notes to the consolidated financial statements
1. Cash at bank and Cash Equivalent
Presented in RMB
| Item | As at 30 June 2021 | As at 30 June 2020 |
| Cash in hand | 17,999.52 | 61,121.83 |
| Deposits with banks | 866,174,881.23 | 1,026,042,804.99 |
| Other monetary funds | 16,113,125.57 | 1,661,361,143.19 |
| Total | 882,306,006.32 | 2,687,465,070.01 |
| Including: Total overseas deposits | 6,457,645.84 | 6,699,719.34 |
Other notes:
As at 30 June 2021, the Group has other monetary funds at RMB 16,113,125.57 is seven-day noticedeposit, which consists of principal RMB 16,000,000.00 and interest income RMB 113,125.57.
2. Trading financial assets
Presented in RMB
| Item | As at 30 June 2021 | As at 30 June 2020 |
| As at fair value through profit or loss | 1,302,329,484.00 | |
| Including: | ||
| Including: | ||
| Total | 1,302,329,484.00 |
Other Note:
As at 30 June 2021, trading financial assets at RMB 1,302,329,484.00 is money market fund, includingprincipal at RMB 1,300,000,000.00 and earnings at RMB 2,329,484.00.
3. Derivative financial assets
Presented in RMB
| Item | As at 30 June 2021 | As at 30 June 2020 |
4. Notes receivable
（1）Types of notes
Presented in RMB
| Item | As at 30 June 2021 | As at 30 June 2020 |
| Commercial acceptance bill | 40,590,521.89 | 35,438,045.34 |
| Total | 40,590,521.89 | 35,438,045.34 |
Presented in RMB
| Classification | As at 30 June 2021 | As at 30 June 2020 | ||||||||
| 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 | 42,455,682.17 | 100.00% | 1,865,160.28 | 4.39% | 40,590,521.89 | 37,303,205.62 | 100.00% | 1,865,160.28 | 5.00% | 35,438,045.34 |
| Including： | ||||||||||
| Total | 42,455,682.17 | 100.00% | 1,865,160.28 | 4.39% | 40,590,521.89 | 37,303,205.62 | 100.00% | 1,865,160.28 | 5.00% | 35,438,045.34 |
Bad debt provision made on an individual basis:
Presented in RMB
| Item | As at 30 June 2021 | |||
| Book balance | Bad debt provision | Provision proportion | Reason | |
Bad debt provision made on a combination basis:
Presented in RMB
| Item | As at 30 June 2021 | ||
| Book balance | Bad debt provision | Provision proportion | |
| commercial acceptance bill | 42,455,682.17 | 1,865,160.28 | 4.39% |
| Total | 42,455,682.17 | 1,865,160.28 | -- |
Note：
Bad debt provision made on a combination basis:
Presented in RMB
| Item | As at 30 June 2021 | ||
| Book balance | Bad debt provision | Provision proportion | |
Note:
Please refer to the way of disclosing other receivables’ bad debt provision to disclose relevantinformation, if the group choose to use general model of expected credit losses to accrue bad debts ofnotes 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 30 June 2020 | The amount of change in current period | As at 30 June 2021 | |||
| Provision | Recoveries or reversals | Written-off | Others | |||
| commercial acceptance bill | 1,865,160.28 | 1,865,160.28 | ||||
| Total | 1,865,160.28 | 1,865,160.28 | ||||
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 |
| commercial acceptance bill | 7,818,054.79 | |
| Total | 7,818,054.79 |
（5）Notes receivable transferred to accounts receivable by the Group due to the drawer'snon-performance at the end of the period
Presented in RMB
| Types | Amount transferred to accounts receivable at the end of the period |
Note:
The group doesn’t have Notes receivable transferred to accounts receivable by the Group due to the
drawer's non-performance at the end of the period.
（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:
5. Accounts receivable
（1）Classified by bad debt provision method
Presented in RMB
| Types | As at 30 June 2021 | As at 30 June 2020 | ||||
| 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 | 24,688,143.06 | 24.70% | 24,688,143.06 | 100.00% | 0.00 | 24,688,143.06 | 28.58% | 24,688,143.06 | 100.00% | 0.00 |
| Bad debt provisions made on a combination basis | 75,248,310.38 | 75.30% | 938,770.44 | 1.25% | 74,309,539.94 | 61,681,286.47 | 71.42% | 2,090,342.41 | 3.39% | 59,590,944.06 |
| Receivable from property sales | 5,644,464.48 | 5.65% | 282,223.22 | 5.00% | 5,362,241.26 | 11,114,285.60 | 12.87% | 555,714.28 | 5.00% | 10,558,571.32 |
| Receivable from other corporate customers | 69,603,845.90 | 69.65% | 656,547.22 | 0.94% | 68,947,298.68 | 50,567,000.87 | 58.55% | 1,534,628.13 | 3.03% | 49,032,372.74 |
| Total | 99,936,453.44 | 100.00% | 25,626,913.50 | 25.64% | 74,309,539.94 | 86,369,429.53 | 100.00% | 26,778,485.47 | 31.00% | 59,590,944.06 |
Bad debt provisions made on an individual basis
Presented in RMB
| Item | As at 30 June 2021 | |||
| 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 | 10,132,205.24 | 10,132,205.24 | 100.00% | Could be uncollectible |
| Accounts receivable from the revoked subsidiary | 2,328,158.40 | 2,328,158.40 | 100.00% | Could be uncollectible |
| Accounts receivable from other customers | 653,223.42 | 653,223.42 | 100.00% | Could be uncollectible |
| Total | 24,688,143.06 | 24,688,143.06 | -- | -- |
Bad debt provisions made on an individual basis
Presented in RMB
| Item | As at 30 June 2021 | |||
| Book balance | Bad debt provision | Provision percentage | Reason | |
Bad debt provision made on a combination basis:
Combined withdrawal item: property sales receivable
Presented in RMB
| Item | As at 30 June 2021 | ||
| Book balance | Bad debt provision | Provision percentage | |
| Within 1 year | 5,644,464.48 | 282,223.22 | 5.00% |
| 1 to 2 years | |||
| Total | 5,644,464.48 | 282,223.22 | -- |
Note to the basis for determining the combination:
Bad debt provision made on a combination basis:
Combined withdrawal item: other customers receivales
Presented in RMB
| Item | As at 30 June 2021 | ||
| Book balance | Bad debt provision | Book balance | |
| Within 1 year | 58,430,587.78 | 97,884.31 | 0.17% |
| 1 to 2 years | 11,173,258.12 | 558,662.91 | 5.00% |
| Total | 69,603,845.90 | 656,547.22 | -- |
Note to the basis for determining the combination:
Bad debt provision made on a combination basis:
Presented in RMB
| Item | As at 30 June 2021 | ||
| Book balance | Bad debt provision | Book balance | |
Note to the basis for determining the combination:
Please refer to the way of disclosing other receivables’ bad debt provision to disclose relevantinformation, if the group choose to use general model of expected credit losses to accrue bad debts ofnotes receivable.
□ Applicable √ Not Applicable
Disclosure by Aging
Presented in RMB
| Aging | As at 30 June 2021 |
| Within 1 year（include 1 year） | 64,075,052.26 |
| 1 to 2 years | 11,173,258.12 |
| 3to 5 years | 24,688,143.06 |
| More than 5 years | 24,688,143.06 |
| Total | 99,936,453.44 |
（2）Additions, recoveries or reversals of provision for the current period
Provision for the current period:
Presented in RMB
| Types | As at 30 June 2020 | Amount changes in current period | As at 30 June 2021 | |||
| Provision | Recoveries or reversals | Written-off | Others | |||
| Bad debt provision | 26,778,485.47 | -1,151,571.97 | 25,626,913.50 | |||
| Total | 26,778,485.47 | -1,151,571.97 | 25,626,913.50 | |||
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 Linyun Real Estate Development Co., Ltd. | 30,694,772.90 | 30.71% | 1,534,738.65 |
| China Construction Third Bureau Group Co., Ltd. | 10,967,071.74 | 10.97% | 548,353.59 |
| Jiangsu Huajian Construction Co., Ltd. Shenzhen Branch | 9,847,885.22 | 9.85% | 492,394.26 |
| Wuhan Yutian Xingye Land Co., LTD | 7,923,254.23 | 7.93% | 396,162.71 |
| Hubei Chuheng Real Estate Co., Ltd. | 5,169,691.40 | 5.17% | 258,484.57 |
| Total | 64,602,675.49 | 64.63% |
（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：
At the end of the period, due to the factoring of accounts receivable, the factoring amount is70,773,140.58 yuan. At the same time, the book value of accounts receivable is 70,773,140.58 yuan, thebad debts have been set aside. Refer to Note VII. 81 for pledge of accounts receivable.
6、Accounts receivable financing
Presented in RMB
| Item | As at 30 June 2021 | As at 30 June 2020 |
The current period of receivables financing changes and changes in fair value.
□ Applicable √ Not applicable
Refer to the way of disclosing provision for other receivables to disclose relevant information, if usegeneral model of expected credit losses to recognize allowance for impairment of receivable financing .
□ Applicable √ Not applicable
Note：
7. Prepayments
（1）(1) The aging analysis of prepayments is as follows
Presented in RMB
| Aging | As at 30 June 2021 | As at 30 June 2020 | ||
| Amount | % | Amount | % | |
| Within 1 year | 2,229,920.78 | 48.77% | 3,004,771.47 | 93.74% |
| 1 to 2 years | 2,141,340.29 | 46.84% | 213.04 | 1.01% |
| 2 to 3 years | 200,000.00 | 4.37% | 200,000.00 | 6.23% |
| More than 3 years | 760.61 | 0.02% | 550.00 | 0.02% |
| Total | 4,572,021.68 | -- | 3,205,534.51 | -- |
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 is4,572,021.68 yuan, which accounts for 100.00% of the total ending balance of prepayments.
8、Other receivables
Presented in RMB
| Item | As at 30 June 2021 | As at 30 June 2020 |
| Dividends receivable | 1,052,192.76 | 1,052,192.76 |
| Other receivables | 17,766,089.78 | 31,692,851.08 |
| Total | 18,818,282.54 | 32,745,043.84 |
（1）Interest receivable
1）Interest receivable classification
Presented in RMB
| Item | As at 30 June 2021 | As at 30 June 2020 |
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 |
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 2021 | As at 30 June 2020 |
| Yunnan Kunpeng Air Service Co., LTD | 1,052,192.76 | 1,052,192.76 |
| Total | 1,052,192.76 | 1,052,192.76 |
2）Significant dividends receivable overdue more than one year are as follows:
Presented in RMB
| Items (or invested units) | As at 30 June 2021 | Aging | Reasons for not retrieving | Whether impairment occurs and the basis for judgment |
| Yunnan Kunpeng Air Service Co., LTD | 1,052,192.76 | 5 years | Delay to issue | No |
| Total | 1,052,192.76 | -- | -- | -- |
3）Bad Debt Provisions
□ Applicable √ Not Applicable
（3）Other receivables
1）Other receivables disclosure by nature
Presented in RMB
| Item | Book balance as at 30 June 2021 | Book balance as at 30 June 2020 |
| Other receivables from government | 503,336.80 | 553,009.68 |
| Other receivables from employee’s petty cash | 3,175,470.25 | 364,674.25 |
| Other receivables from the collecting and paying on behalf | 665,251.08 | 665,251.08 |
| Other receivables from other customers | 60,547,008.26 | 63,398,344.58 |
| Other receivables from related parties | 148,574,423.06 | 161,948,487.76 |
| Total | 213,465,489.45 | 226,929,767.35 |
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 2021 | 1,584,732.41 | 193,652,183.86 | 195,236,916.27 | |
| Balance as at 1 January 2021 in current period | —— | —— | —— | —— |
| Provision in a current period | 1,605,063.68 | -1,142,580.28 | 462,483.40 | |
| Balance as at 30 June 2021 | 3,189,796.09 | 192,509,603.58 | 195,699,399.67 |
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 2021 |
| Within 1 year (include 1 year) | 19,966,456.40 |
| 1 to 2 years | 23,055,181.11 |
| 3 to 4 years | 171,496,044.70 |
| 4 to 5 years | 171,496,044.70 |
| Total | 214,517,682.21 |
3）Additions, recoveries or reversals of provision for the current period
Presented in RMB
| Types | As at 30 June 2020 | Amount changes in current period | As at 30 June 2021 | |||
| Additions | Recoveries or reversals | Written-off | Others | |||
| Other receivables bad debt provision | 195,236,916.27 | 462,483.40 | 195,699,399.67 | |||
| Total | 195,236,916.27 | 462,483.40 | 195,699,399.67 | |||
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 procedures to be performed | Whether the payment is generated by an affiliate |
Note：
5）The top five units of ending balance of other receivables
Presented in RMB
transactionName of the entity
| 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 | 41.51% | 89,035,748.07 |
| Paklid Limited | current account | 19,319,864.85 | More than 5 years | 9.01% | 19,319,864.85 |
| Australia Bekaton property Limited | current account | 12,559,290.58 | More than 5 years | 5.85% | 12,559,290.58 |
| Guangdong province Huizhou Luofu Hill Mineral Water Co.,Ltd | current account | 10,465,168.81 | More than 5 years | 4.88% | 10,465,168.81 |
| Xi’an Fresh Peak Property Trading Co., Ltd | current account | 8,419,205.19 | More than 5 years | 3.92% | 8,419,205.19 |
| Total | -- | 139,799,277.50 | -- | 65.17% | 139,799,277.50 |
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 involve them
9. 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 IndustryInformation Disclosure Guidelines No. 3-Listed Companies Engaged in Real Estate Business".
Classified by nature:
Presented in RMB
| Item | As at 30 June 2021 | As at 30 June 2020 | ||||
| Book balance | Provision for impairment of inventorie s | The book value | Book balance | Provision for impairment of inventorie s | The book value | |
| Inventory Equipment | 107,762,511.63 | 278,891.91 | 107,483,619.72 | 5,019,143.11 | 278,891.91 | 4,740,251.20 |
| Real estate developing cost | 1,807,527,864.66 | 1,807,292,813.20 | 556,589,091.25 | 556,589,091.25 | ||
| Real estate developed products | 1,060,450,014.45 | 268,941.60 | 1,060,181,072.85 | 659,403,711.71 | 268,941.60 | 659,134,770.11 |
| Total | 2,975,740,390.74 | 547,833.51 | 2,974,957,505.77 | 1,221,011,946.07 | 547,833.51 | 1,220,464,112.56 |
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 30 June 2020 | Less: Transfer to “Real estate developed products | Less: Other reduction | Add: Increase in this period | As at 30 June 2021 | Cumulative interest capitalization | Include: Amount of interest capitalized in the current period | Sources of funds |
| TianYue Bay No.2 | 1 Sep 2018 | 9 May 2021 | 654,850,000.00 | 531,297,183.14 | 0.00 | 534,547,758.88 | 3,250,575.74 | 0.00 | 1,014,744.90 | 0.00 | Other |
| ShanTou Fresh Peak Building | 25,291,908.11 | 25,291,908.11 | Other | ||||||||
| Lin Xin Garden | 1 June 2021 | 30 June 2023 | 3,000,000,000.00 | 1,782,000,905.09 | 1,782,000,905.09 | Other | |||||
| Total | -- | -- | 3,654,850,000.00 | 556,589,091.25 | 0.00 | 534,547,758.88 | 1,785,251,480.83 | 1,807,292,813.20 | 1,014,744.90 | -- |
The main items of " Real estate developed products" and their interest capitalization are shown below:
Presented in RMB
| Item | Time for | As at 30 June | Increase | Decrease | As at 30 June | Cumulative | Include: Amount |
| completion | 2020 | 2021 | interest capitalization | of interest capitalized in the current period | |||
| Jinye Island Multi-tier villa | 16 Sep. 1997 | 39,127,219.14 | 51,600.00 | 39,178,819.14 | |||
| Jinye Island villa No.10 | 2 Dec 2010 | 5,387,376.71 | 5,387,376.71 | ||||
| Jinye Island villa No.11 | 20 Aug. 2008 | 2,333,281.42 | 2,333,281.42 | ||||
| YueJing dongfang Project | 18 Nov. 2014 | 7,727,546.84 | 236,918.46 | 7,490,628.38 | |||
| Wenjin Garden | 23,198.37 | 23,198.37 | |||||
| HuaFeng Building | 0.00 | ||||||
| HuangPu XinCun | 140,000.00 | 140,000.00 | |||||
| XingHu Garden | 0.00 | ||||||
| Shenfang Shanglin Garden | 1 Jan. 2014 | 10,206,656.46 | 10,206,656.46 | 820,623.32 | |||
| Beijing Fresh Peak Buliding | 304,557.05 | 304,557.05 | |||||
| TianYue Bay No.1 | 15 Dec. 2017 | 335,020,709.01 | 31,883,188.17 | 303,137,520.84 | |||
| Shengfang CuiLin Building | 8 May 2018 | 55,783,765.78 | 4,176,133.13 | 51,607,632.65 | 0.00 | ||
| Chuanqi Donghu | 18 Dec 2019 | 203,349,400.93 | 97,256,816.38 | 106,092,584.55 | 2,412,880.86 | ||
| TianYue Bay No.2 | 30 June 2021 | 534,547,758.88 | 534,547,758.88 | ||||
| Total | -- | 659,403,711.71 | 534,599,358.88 | 133,553,056.14 | 1,060,450,014.45 | 3,233,504.18 |
The main items of "instalment on development products”, "leased development products”, “Revolvingroom” are shown below:
Presented in RMB
| Item | As at 30 June 2020 | Increase | Decrease | As at 30 June 2021 |
（2）Provision for inventories and impairment of contract performance costs
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 | ||||
| Inventory Equipment | 278,891.91 | 278,891.91 | |||||
| Real estate developed products | 268,941.60 | 268,941.60 | |||||
| Total | 547,833.51 | 547,833.51 | -- | ||||
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 | ||||
| Raw material 2 | 240,000.00 | 240,000.00 | |||||
| Finished products | 38,891.91 | 38,891.91 | |||||
| Shang Lin Garden | 268,941.60 | 268,941.60 | |||||
| Total | 547,833.51 | 547,833.51 | -- | ||||
（3）The ending balance of inventory contains the explanation of the capitalized amount of borrowingexpenses:
As at 30 June 2021, the Group's inventory balance contains capitalized borrowing costs at 3,233,504.18yuan (As at 31 Dec 2020 is 3,497,172.46 yuan).
（4）Restriction on Inventories
Disclose restriction on Inventories by projects：
Presented in RMB
| Name of project | Opening balance | Ending balance | Reason of restriction |
10. Contractual assets
Presented in RMB
| Item | Ending balance | Opening balance | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
The Amount and reason of significant changes in book value of contractual assets in current reportingperiod:
Presented in RMB
| Item | Changes in amount | Reason for change |
Refer to the way of disclosing provision for other receivables to disclose relevant information, if usegeneral model of expected credit losses to recognize allowance for impairment of contractual assets.
□ Applicable √ Not applicable
Provision for impairment of contractual assets in current period:
Presented in RMB
| Item | Provision in current period | Reversals in current period | Verification / Written-off in current period | Reason |
Note:
11. Assets held for sale
Presented in RMB
| Item | Book balance as at 30 June 2021 | Provision for impairment | Book value as at 30 June 2021 | Fair Value | Estimated disposal costs | Estimated disposal time |
Note:
12、Non-current assets due within one year
Presented in RMB
| Item | As at 30 June 2021 | As at 30 June 2020 |
Significant debt investment/ other debt investment
Presented in RMB
| Debt investment | As at 30 June 2021 | As at 30 June 2020 | ||||||
| Face value | Coupon rate | Real interest rate | Maturity date | Face value | Coupon rate | Real interest rate | Maturity date | |
Note：
13. Other current assets
Presented in RMB
| Item | As at 30 June 2021 | As at 30 June 2020 |
| Advance or prepaid income tax | 68,363,843.23 | 68,880,760.27 |
| Prepaid VAT | 21,698,004.38 | 25,577,294.63 |
| Input tax to be deducted | 37,028,466.31 | 4,741,378.98 |
| Land Appreciation Tax | 4,164,318.88 | 2,083,793.61 |
| Business Tax | 332,522.82 | 312,287.17 |
| Others | 1,217,512.63 | 1,311,620.13 |
| Total | 132,804,668.25 | 102,907,134.79 |
Note：
14. Debt investment
Presented in RMB
| Item | As at 30 June 2021 | As at 30 June 2020 | ||||
| Book balance | Impairment loss | The book value | Book balance | Impairment loss | The book value | |
Significant debt investment
Presented in RMB
| Debt investment | As at 30 June 2021 | As at 30 June 2020 | ||||||
| Face value | Coupon rate | Real interest rate | Maturity date | Face value | Coupon rate | Real interest rate | Maturity date | |
Impairment provisions for the current period
Presented in RMB
| Provision | The first stage | The second stage | The third stage | Total |
| Expected credit losses over the next 12 months | Expected credit losses over the entire duration (no credit impairment occurred) | Expected credit loss over the entire duration (credit impairment has occurred) | ||
| Balance as at 30 June 2021 | —— | —— | —— | —— |
Significant changes in book balance of impairment provisions for the current period
□ Applicable √ Not Applicable
Note：
15. Other debt investment
Presented in RMB
| Item | Opening balance | Accrued interest | Changes in current fair value | Ending Balance | The cost of | Cumulative fair value changes | Accumulate the loss provision recognized in other comprehensive income | Note |
Significant other debt investment
Presented in RMB
| Other debt investment | As at 30 June 2021 | As at 30 June 2020 | ||||||
| Face value | Coupon rate | Real interest rate | Maturity date | Face value | Coupon rate | Real interest rate | Maturity date | |
Impairment provisions for the current period
Presented in RMB
| Provision | The first stage | The second stage | The third stage | Total |
| Expected credit losses over the next 12 months | Expected credit losses over the entire duration (no credit impairment occurred) | Expected credit loss over the entire duration (credit impairment has occurred) | ||
| Balance as at 1 Jan. 2021 | —— | —— | —— | —— |
Significant changes in book balance of impairment provisions for the current period
□ Applicable √ Not Applicable
Note：
16. Long-term receivables
（1）Long-term receivables are disclosed by nature
Presented in RMB
| Item | As at 30 June 2021 | As at 30 June 2020 | Discount rate range | ||||
| Book balance | Bad debt provision | Book Value | Book balance | Bad debt provision | Book Value | ||
Bad Debt Provision
Presented in RMB
| Provision | The first stage | The second stage | The third stage | Total |
| Expected credit losses over the next 12 months | Expected credit losses over the entire duration (no credit impairment occurred) | Expected credit loss over the entire duration (credit impairment has occurred) | ||
| Balance as at 1 Jan. 2021 | —— | —— | —— | —— |
Significant changes in book balance of impairment provisions for the current period
□ Applicable √ Not Applicable
（2）Long-term receivables terminated due to financial asset transfer
（3）Amount of transferring long-term receivables and continuing to involve in the formation of assets andliabilities
17. Long-term equity investments
Presented in RMB
| Investees | Opening | Movements during the period | Ending | Balance of |
| balance (book value) | Increase | Decrease | Investment in come recogni sed under equity met ho | Adjustment in OCI | Other eq uity movem ents | Declared distributio n of cash dividends or profits | Provision f or impairm ent | Other | balance (book value) | provision for impairment as June 30 2021 | |
| 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 | 1,454,444.29 | 1,454,444.29 | 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 | 33,275,954.74 | 33,275,954.74 | 32,898,465.09 | ||||||||
| Total | 52,700,626.21 | 52,700,626.21 | 52,323,136.56 | ||||||||
Note:
| Investee | Accounting treatment | As at Jun 30 2020 | Movement | As at Jun 30 2021 | Provision for impairment |
| Paklid Limited | Cost method | 201,100.00 | -- | 201,100.00 | 201,100.00 |
| Australia Bekaton Property Limited | Cost method | 906,630.00 | -- | 906,630.00 | 906,630.00 |
| Shenzhen Shenfang Department Store Co. Ltd. | Cost method | 10,000,000.00 | -- | 10,000,000.00 | 10,000,000.00 |
| Shantou Fresh Peak Building | Cost method | 58,547,652.25 | -- | 58,547,652.25 | 58,547,652.25 |
| Guangdong Province Fengkai Lain Feng Cement Manufacturing Co., Ltd | Cost method | 56,228,381.64 | -- | 56,228,381.64 | 56,228,381.64 |
| Jiangmen XinJiang real estate compnay | Cost method | 9,037,070.89 | 9,037,070.89 | 9,037,070.89 |
| Xian Xinfeng property trading ltd. | Cost method | 32,840,729.61 | 32,840,729.61 | 32,840,729.61 |
| Total | 167,761,564.39 | 0.00 | 167,761,564.39 | 167,761,564.39 |
Note：The equity of subsidiaries which are not included in consolidation scope are recoded inlong-term equity investment. Some of these subsidiaries are winded up already, but the group hasn’twrite off its long-term equity investment. Some of these subsidiaries ceased operating many years agoand no longer exist, the group could not implement effective management control over them. Refer toNote IX for more details.
18、Investments in other equity instrument
Presented in RMB
| Item | As at 30 June 2021 | As at 30 June 2020 |
| Shantou Small &Medium Enterprises Financing Guarantee Co., Ltd | 14,076,578.89 | 13,508,202.32 |
| Yunnan KunPeng Flight service Co., Ltd | 24,004,696.29 | 24,002,658.19 |
| Total | 38,081,275.18 | 37,510,860.51 |
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 | 4,044,060.00 | |||||
| Yunnan KunPeng Flight service Co., Ltd | 1,653,305.67 | |||||
| Total | 5,697,365.67 |
Note：
19、Other non-current financial assets
Presented in RMB
| Species | As at 30 June 2021 | As at 30 June 2020 |
20. Investment property
（1）(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. 2020 | 1,054,731,893.62 | 100,572,661.91 | 1,155,304,555.53 | |
| 2. Additions during the year | ||||
| （1）Purchase | ||||
| （2）Transfer from Inventories\Fixed assets\ construction in progress | ||||
| （3）Additions due to business combinations | ||||
| 3. Decrease during the year | 1,034,257.33 | 1,034,257.33 | ||
| （1）Disposals | ||||
| （2）Other transfers out | ||||
| （3）Others（change on foreign exchange) | 1,034,257.33 | 1,034,257.33 | ||
| 4.Balance as at 30 June 2021 | 1,054,731,893.62 | 99,538,404.58 | 1,154,270,298.20 | |
| II. Accumulated depreciation or amortization | ||||
| 1. Balance as at 31 Dec. 2020 | 442,265,712.97 | 442,265,712.97 | ||
| 2. Charge for the year | 12,826,588.91 | 12,826,588.91 | ||
| （1）Depreciated or amortised | 12,826,588.91 | 12,826,588.91 | ||
| 3. Reductions during the yea | ||||
| （1）Disposals | ||||
| （2）Other transfers out | ||||
| 4.As at 30 June 2021 | 455,092,301.88 | 455,092,301.88 | ||
| III. Provision for impairment | ||||
| 1. Balance as at 31 Dec. 2020 | 14,128,544.62 | 82,544,676.41 | 96,673,221.03 | |
| 2. Charge for the year | ||||
| (1) Provision | ||||
| (3) Others（change on foreign exchange） |
| 3. Reductions on disposals | 848,863.25 | 848,863.25 | ||
| （1）Disposals | ||||
| （2）Other transfers out | ||||
| （3）Others（change on foreign exchange) | 848,863.25 | 848,863.25 | ||
| 4.As at 30 June 2021 | 14,128,544.62 | 81,695,813.16 | 95,824,357.78 | |
| IV. Carrying amounts | ||||
| 1. As at 30 June 2021 | 585,511,047.12 | 17,842,591.42 | 603,353,638.54 | |
| 2. As at 31 Dec 2020 | 598,337,636.03 | 18,027,985.50 | 616,365,621.53 |
（2）Investment property measured at fair value
□ Applicable √ Inapplicable
The company complies with the disclosure requirements of "Shenzhen Stock Exchange IndustryInformation Disclosure 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. 2020 | Fair value as at 30 June 2021 | 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 |
Note: The current reduction in the original value of land use right and the impairment provision iscaused by the exchange rate changes during the translation of foreign currency statements
21、Fixed assets
Presented in RMB
| Item | As at 30 June 2021 | As at 31 Dec. 2020 |
| Fixed assets | 26,885,430.32 | 28,039,978.43 |
| Total | 26,885,430.32 | 28,039,978.43 |
（1）Fixed assets
Presented in RMB
| Item | Plant & buildings | Motor vehicles | Electronic equipment and others | Total |
| I．Cost： | ||||
| 1. Balance as at 31 Dec. 2020 | 107,700,181.42 | 10,441,558.92 | 13,645,811.86 | 131,787,552.20 |
| 2.Additions during the year | 404,299.91 | 345,101.00 | 749,400.91 | |
| (1) Purchases | 404,299.91 | 345,101.00 | 749,400.91 | |
| (2) Transfers from construction in progress | ||||
| （3) Additions due to business combinations | ||||
| 3. Decrease during the year | 230,102.00 | 93,161.56 | 323,263.56 | |
| (1) Disposals or written-offs | 230,102.00 | 93,161.56 | 323,263.56 | |
| 4.As at 30 June 2021 | 107,700,181.42 | 10,615,756.83 | 13,897,751.30 | 132,213,689.55 |
| II. Accumulated depreciation | ||||
| 1. Balance as at 31 Dec. 2020 | 83,519,658.69 | 9,059,003.88 | 11,168,911.20 | 103,747,573.77 |
| 2. Charge for the year | 1,382,173.18 | 146,352.35 | 366,004.52 | 1,894,530.05 |
| (1) Provision | 1,382,173.18 | 146,352.35 | 366,004.52 | 1,894,530.05 |
| 3. Reductions for the year | 227,552.00 | 86,292.59 | 313,844.59 | |
| (1) Disposal or written-offs | 227,552.00 | 86,292.59 | 313,844.59 | |
| 4. Balance as at 30 June 2021 | 84,901,831.87 | 8,977,804.23 | 11,448,623.13 | 105,328,259.23 |
| III. Provision for impairment | ||||
| 1. Balance as at 31 |
| Dec. 2020 | ||||
| 2. Charge for the year | ||||
| (1) Provision | ||||
| 3. Reductions for the year | ||||
| (1) Disposals or written-offs | ||||
| 4.Balance As at 30 June 2021 | ||||
| IV. Carrying amount | ||||
| 1. As at 30 June 2021 | 22,798,349.55 | 1,637,952.60 | 2,449,128.17 | 26,885,430.32 |
| 1. As at 31 Dec. 2020 | 24,180,522.73 | 1,382,555.04 | 2,476,900.66 | 28,039,978.43 |
（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 |
Note
（5）Fixed assets to be disposed of
Presented in RMB
| 项目 | As at 30 June 2021 | 期初余额 |
Note:
22. Construction in progress
Presented in RMB
| Item | As at 30 June 2021 | As at 31 Dec. 2020 |
（1）Construction in progress
Presented in RMB
| Item | As at 30 June 2021 | As at 31 Dec. 2020 | ||||
| Book value | Provision for impairment | Carrying amount | Book value | Provision for impairment | Carrying amount | |
（2）Movements of major construction Items in progress
Presented in RMB
| Item | Budget | Balance as at 31 Dec. 2020 | Additions | Transfers to fixed assets | Other deductions for the year | Balance as at 30 June 2021 | Percentage of actual cost to budget (%) | Item progress | Accumulated capitalised interest | Including: interest capitalised in 2021 | Interest rate for capitalisation in 2021(%) | Sources of funding |
（3）Provision for impairment of construction in progress
Presented in RMB
| Item | Provision for current period | Reason for provision |
Note:
（4）Construction materials
Presented in RMB
| Item | As at 30 June 2021 | As at 31 Dec. 2020 | ||||
| Book balance | Provision for impairment | Carrying amount | Book balance | Provision for impairment | Carrying amount | |
23、Productive living assets
（1）Measured at cost
□ Applicable √ Not applicable
（2）Measured at fair value
□ Applicable √ Not applicable
24. Oil and gas assets
□ Applicable √ Not applicable
25. Use rights assets
Presented in RMB
| Item | Total |
26. 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. 2020 | 2,241,800.00 | 2,241,800.00 | |||
| 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 2021 | 2,241,800.00 | 2,241,800.00 | |||
| II. Accumulative amortisation | |||||
| 1. Balance as at 31 Dec. 2020 | 2,241,800.00 | 2,241,800.00 | |||
| 2. Charge for the year | |||||
| (1) Provision | |||||
| 3. Reductions for the year | |||||
| (1) Disposals | |||||
| 4.As at 30 June 2021 | 2,241,800.00 | 2,241,800.00 | |||
| III. Provision for impairment | |||||
| 1. Balance as at 31 Dec. 2020 | |||||
| 2. Charge for the year | |||||
| (1) Provision |
| 3. Reductions for the year | |||||
| (1) Disposals | |||||
| 4.As at 30 June 2021 | |||||
| IV. Carrying amount | |||||
| 1. As at 30 June 2021 | |||||
| 1. As at 31 Dec. 2020 |
The carrying amount of intangible assets of the Group arising from internal development is XX% ofthe total carrying 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 |
27. Development costs
Presented in RMB
| Item | As at 31 Dec. 2020 | Additions during the year | Decreased during the year | As at 30 June 2021 | ||
| Internal development | Others | Recognised as intangible assets | Recognised in profit or loss | |||
| Total | ||||||
28. Goodwill
（1）Book value of goodwill
Presented in RMB
| Name of investee or events from which goodwill arose | As at 31 Dec. 2020 | Additions during the year | Decreases during the year | As at 30 June 2021 |
| Business combination | Disposal | |||
| Total |
（2）Provision for impairment of goodwill
Presented in RMB
| Name of investee or events from which goodwill arose | As at 31 Dec. 2020 | Additions during the year | Decreases during the year | As at 30 June 2021 |
| Provision | Disposal | |||
| Total |
Information about the asset group or combination of asset groups in which the goodwill residesThe method of determining goodwill impairment and explain the process and key parameter of goodwill impairment tests:
The impact of goodwill impairment tests:
Other note:
29、Long-term deferred expense
Presented in RMB
| Item | As at 1 Jan. 2021 | Additions during the year | Amortisation for the year | Others decreases | As at 30 June 2021 |
| Renovation Costs | 61,667.53 | 666,413.00 | 49,656.77 | 678,423.76 | |
| Total | 61,667.53 | 666,413.00 | 49,656.77 | 678,423.76 |
其他说明30、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 2021 | As at 31 Dec. 2020 | ||
| Deductible or taxable temporary | Deferred tax assets | Deductible or taxable temporary | Deferred tax assets | |
| Provisions for impairment of assets | 5,859,920.76 | 1,464,980.19 | 6,549,009.33 | 1,637,252.33 |
| Unrealised profits of intra-group transactions | 6,745,000.27 | 1,686,250.07 | 40,305,039.22 | 10,076,259.81 |
| Deductible tax losses | 15,167,917.10 | 3,791,979.28 | 48,676,321.03 | 12,169,080.26 |
| Provision for land appreciation tax liquidation reserves | 385,775,750.47 | 96,443,937.62 | 334,846,723.41 | 83,711,680.85 |
| Accrued Contractual cost | 3,601,362.60 | 900,340.64 | 20,603,882.91 | 5,150,970.73 |
| Total | 417,149,951.20 | 104,287,487.80 | 450,980,975.90 | 112,745,243.98 |
（2）Deferred tax liabilities without offsetting
Presented in RMB
| Item | As at 30 June 2021 | As at 31 Dec. 20 |
| 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 | 20,046,619.77 | 5,011,654.94 | 20,046,619.77 | 5,011,654.94 |
| Interestt not due | 18,361,143.19 | 4,590,285.80 | 18,361,143.19 | 4,590,285.80 |
| Total | 38,407,762.96 | 9,601,940.74 | 38,407,762.96 | 9,601,940.74 |
（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 2021 | Deferred tax assets or liabilities after offsetting as at 30 June 2021 | Amount of offsetting as at 31 Dec. 2020 | Deferred tax assets or liabilities after offsetting as at 31 Dec. 2020 |
| Deferred tax assets | 104,287,487.80 | 112,745,243.98 | ||
| Deferred tax liabilities | 9,601,940.74 | 9,601,940.74 |
（4）Details of unrecognized deferred tax assets
Presented in RMB
| Item | As at 30 June 2021 | As at 31 Dec. 20 |
| Deductible tax losses | 10,528,755.36 | 21,878,078.42 |
| Bad debt provision | 221,326,313.17 | 217,879,386.20 |
| Provision for impairment of long-term equity | 220,084,700.95 | 220,084,700.95 |
| Provision for impairment of investment real estate | 95,824,357.78 | 96,673,221.03 |
| Total | 547,764,127.26 | 556,515,386.60 |
（5）Expiration of deductible tax losses for unrecognised deferred tax assets
Presented in RMB
| Year | As at 30 June 2021 | As at 31 Dec. 20 | Note |
| 2021 | 11,349,323.06 | ||
| 2022 | 5,753,184.38 | 5,753,184.38 | |
| 2023 | 4,085,485.24 | 4,085,485.24 | |
| 2024 | 688,456.49 | 688,456.49 | |
| 2025 | 1,629.25 | 1,629.25 |
| 2026 | |||
| Total | 10,528,755.36 | 21,878,078.42 | -- |
31. Other non-current assets
Presented in RMB
| Item | As at 30 June 2021 | As at 31 Dec. 2020 | ||||
| Book balance | Impairment loss | Book value | Book balance | Impairment loss | Book value | |
32. Short-term loans
（1）Classification of short-term loans
Presented in RMB
| Item | As at 30 June 2021 | As at 31 Dec. 20 |
| Pledge loans | 70,773,140.58 | 76,893,995.94 |
| Total | 70,773,140.58 | 76,893,995.94 |
Note:
The ending balance of the loan consist of the factoring with accounts receivables and discounted commercial acceptance billreceivable which is not derecognized.
（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 significantitems are as follows:
Presented in RMB
| Lender | As at 30 June 2021 | Interest rate | Past due period | Interest rate if overdue |
33. Trading financial liabilities
Presented in RMB
| Item | Ending balance | Opening balance |
| Including: | ||
| Including: |
34. Derivative financial liabilities
Presented in RMB
| Item | Ending balance | Opening balance |
35、Notes payable
Presented in RMB
| Kind of Class | Ending balance | Opening balance |
| Commercial acceptance bill | 330,993,002.80 | |
| Total | 330,993,002.80 |
The total amount of notes payable due and unpaid at the end of the current period is RMB 0.
36. Accounts payable
（1）Accounts payable
Presented in RMB
| Item | As at 30 June 2021 | As at 31 Dec. 2020 |
| Construction | 97,592,538.26 | 174,552,420.54 |
| Others | 2,160,147.25 | 2,374,193.74 |
| Total | 99,752,685.51 | 176,926,614.28 |
（2）the age of more than 1 year of important accounts payable
Presented in RMB
| Item | As at 30 June 2021 | Reasons for non-payment or non-carry-forward |
37. Advances from customers
（1）Advance payments
Presented in RMB
| Item | As at 30 June 2021 | As at 31 Dec. 2020 |
| Payment for goods-import and export | 4,218,370.69 | 4,218,370.69 |
| Others | 17,118,381.99 | 1,721,721.46 |
| Total | 21,336,752.68 | 5,940,092.15 |
（2）Important advances received over one year
Presented in RMB
| Item | As at 30 June 2021 | Reasons for non-payment or non-carry-forward |
Other note：
The group shall comply with the disclosure requirements of “Shenzhen Stock Exchange IndustryInformation Disclosure Guidelines No. 3- Listed Companies Engaged in Real Estate Business".The top five advances received:
Presented in RMB
| Number | Name of project | Opening balance | Ending balance | Expected completion date | Pre-sale ratio |
| 1 | ChuanQi DongHu Building | 180,760,600.38 | 335,596,312.38 | 2019.12.18 | 97.00% |
| 2 | Shengfang CuiLin Building | 6,227,263.00 | 18,075,867.00 | 2018.05.08 | 92.00% |
| 3 | Tian Yue Bay No. 1 | 16,579,885.47 | 18,109,468.91 | 2017.12.15 | 68.00% |
| 4 | Tian Yue Bay No. 2 | 1,591,883.50 | 20,929,599.06 | 2021.06.30 | 7.00% |
| 5 | YueJing dongfang Project | 30,000.00 | 240,476.19 | 2018.04.27 | 99.00% |
38. Contractual liabilities
Presented in RMB
| Item | As at 30 June 2021 | As at 31 Dec. 2020 |
| Advance in house payment | 374,239,736.70 | 196,619,100.77 |
| others | 798,344.85 | 167,876.42 |
| Total | 375,038,081.55 | 196,786,977.19 |
Changes in amount and reason for the change in reporting period:
Presented in RMB
| Item | Changes in the amount | Reason for change |
39. Payroll payable
（1）Employee benefits payable
Presented in RMB
| Item | As at 31 Dec 2020 | Accrued during the year | Decreased during the year | As at 30 June 2021 |
| Short-term employee benefits | 60,375,684.92 | 63,088,293.97 | 69,084,660.06 | 54,379,318.83 |
| Post-employment benefits - defined contribution plans | 92,149.17 | 6,984,810.72 | 6,984,625.92 | 92,333.97 |
| Total | 60,467,834.09 | 70,073,104.69 | 76,069,285.98 | 54,471,652.80 |
（2）Short-term employee benefits
Presented in RMB
| Item | As at 31 Dec 2020 | Accrued during the year | Decreased during the year | As at 30 June 2021 |
| 1.Salaries, bonus, allowances | 59,181,979.88 | 55,058,402.34 | 61,277,324.19 | 52,963,058.03 |
| 2.Staff welfare | 37,800.00 | 1,144,676.16 | 1,010,917.00 | 171,559.16 |
| 3.Social insurances | 1,850.44 | 2,506,432.83 | 2,506,432.83 | 1,850.44 |
| Including: Medical insurance | 1,259.40 | 2,295,397.70 | 2,295,397.70 | 1,259.40 |
| Work-related injury insurance | 591.04 | 37,106.15 | 37,106.15 | 591.04 |
| Maternity insurance | 0.00 | 173,928.98 | 173,928.98 | |
| 4. Housing Fund | 583,666.83 | 2,975,066.91 | 2,975,066.91 | 583,666.83 |
| 5. Labor union fees, staff and workers’ education fee | 570,387.77 | 1,403,715.73 | 1,314,919.13 | 659,184.37 |
| Total | 60,375,684.92 | 63,088,293.97 | 69,084,660.06 | 54,379,318.83 |
（3）Post-employment benefits - defined contribution plans
Presented in RMB
| Item | As at 31 Dec 2020 | Accrued during the year | Decreased during the year | As at 30 June 2021 |
| Basic pension insurance | 75,318.93 | 4,760,047.65 | 4,760,047.65 | 75,318.93 |
| Unemployment insurance | 914.12 | 120,268.07 | 120,083.27 | 1,098.92 |
| Annuity | 15,916.12 | 2,104,495.00 | 2,104,495.00 | 15,916.12 |
| Total | 92,149.17 | 6,984,810.72 | 6,984,625.92 | 92,333.97 |
Note：
40.Tax payable
Presented in RMB
| Item | As at 30 June 2021 | As at 31 Dec 2020 |
| Value-added tax | 2,434,832.50 | 2,225,243.79 |
| Corporate income tax | 34,021,982.45 | 116,073,629.88 |
| Individual income tax | 775,508.90 | 1,067,279.80 |
| City maintenance and construction tax | 289,653.52 | 240,165.30 |
| Property tax | 4,933,089.19 | 272,984.08 |
| Land appreciation tax | 455,421,887.95 | 339,492,860.89 |
| Education surcharge | 223,727.78 | 192,629.99 |
| Others | 292,327.33 | 144,853.22 |
| Total | 498,393,009.62 | 459,709,646.95 |
Note：
41. Other payables
Presented in RMB
| Item | As at 30 June 2021 | As at 31 Dec 2020 |
| Interest payables | 16,535,277.94 | 16,535,277.94 |
| Other payables | 565,657,226.46 | 260,569,851.80 |
| Total | 582,192,504.40 | 277,105,129.74 |
（1）Interest payable
Presented in RMB
| Item | As at 30 June 2021 | As at 31 Dec 2020 |
| 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 | -- |
Note:
The loan principal was paid in full on 22 Dec. 2016.
（2）Dividends payable
Presented in RMB
| Item | As at 30 June 2021 | As at 31 Dec 2020 |
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 2021 | As at 31 Dec 2020 |
| Accrued land appreciation tax | 33,702,506.09 | 59,789,921.48 |
| Current account to Related parties | 18,119,380.19 | 18,119,380.19 |
| Deposits | 98,629,080.12 | 100,280,051.56 |
| Borrowings from minority shareholders | 331,178,702.21 | |
| Others | 84,027,557.85 | 82,380,498.57 |
| Total | 565,657,226.46 | 260,569,851.80 |
2）significant other payables aging over 1 year
Presented in RMB
| Item | As at 30 June 2021 | Reason for no repayment |
Note:
On 30 April 2021, the group acquired 51% equity of Guangdong Jianbang group (Huiyang) industrialCo., LTD, while the remaining 49% equity is still held by Guangzhou Bopi enterprise managementconsultant company. According to “Cooperative Development Agreement”, the group and the Bopicompany need to provide Jianbang with loans based on equity ratio in support of its development. TheBopi company borrowed 331,178,702.21 to Jainbang with interest rate at 6%.
42. Liabilities held for sale
Presented in RMB
| Item | As at 30 June 2021 | As at 31 Dec 2020 |
43. Non-current liabilities due within one year
Presented in RMB
| Item | As at 30 June 2021 | As at 31 Dec 2020 |
44. Other current liabilities
Presented in RMB
| Item | As at 30 June 2021 | As at 31 Dec 2020 |
| Others | 18,752,463.49 | 8,917,027.07 |
| Total | 18,752,463.49 | 8,917,027.07 |
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 2020 | The current issue | Interest is accrued at face value | Amortization of excess discount | The current pay | As at 30 June 2021 |
Note:
According to new revenue standard, the VAT of advance received is adjusted to “other currentliabilities” in current reporting period..
45. Long-term loans
（1）Long-term loans classification
Presented in RMB
| Item | As at 30 June 2021 | As at 31 Dec 2020 |
Note:
46. Debentures payable
（1）Debentures payable
Presented in RMB
| Item | As at 30 June 2021 | As at 31 Dec 2020 |
（2）Changes in increase or decrease of bonds payable (excluding preferred stock, perpetual debt and otherfinancial instruments classified as financial liabilities)
Presented in RMB
| Name of the bond | Face value | Release date | The bond deadline | issuance | As at 31 Dec. 20 | The current issue | Interest is accrued at face value | Amortization of excess discount | The current pay | As at 30 June 2021 | |
| Total | -- | -- | -- |
（3）Convertible corporate bonds(Convertible company bonds conversion conditions, conversion time)
（4）Other financial instruments classified as financial liabilities
Basic information on preferred stock, perpetual debt and other financial instruments outstanding at theend of the period:
Statement of changes in preferred shares, perpetual bonds and other financial instruments outstanding
at the end of the period:
Presented in RMB
| An outstanding financial | 2020.12.31 | Increase in current period | The reduced in current period | 2021.6.30 | ||||
| The number of | The book value | The number of | The book value | The number of | The book value | The number of | The book value | |
47. Lease liabilities
Presented in RMB
| Item | As at 30 June 2021 | As at 31 Dec 2020 |
48、Long-term payables
Presented in RMB
| Item | As at 30 June 2021 | As at 31 Dec 2020 |
| Long-term payables | 8,245,567.40 | 7,480,233.43 |
| Total | 8,245,567.40 | 7,480,233.43 |
（1）Long-term payables (shown by nature of payments)
Presented in RMB
| Item | As at 30 June 2021 | As at 31 Dec 2020 |
| Maintenance fund | 8,245,567.40 | 7,480,233.43 |
（2）Special payables
Presented in RMB
| Item | As at 31 Dec 2020 | Increase in current | The reduced | As at 30 June 2021 | Reasons for the formation |
49. Long-term employee benefits payable
（1）Long-term employee benefits payable
Presented in RMB
| Item | As at 30 June 2021 | As at 31 Dec 2020 |
（2）Set the changes of benefit plan
Set the present value of the benefit plan obligation:
Presented in RMB
| Item | This amount | The amount of the previous period |
Plan assets
Presented in RMB
| Item | This amount | The amount of the previous period |
Defined benefit plan net liabilities (net assets) :
Presented in RMB
| Item | This amount | The amount of the previous period |
The content, causes, characteristics and related risks of the defined benefit plan and the influence ofthe benefit plan on the amount, time and uncertainty of the Group's future cash flow.Actuarial hypothesis and Sensitivity analysis of setting benefit plan:
Other note:
50. Provisions
Presented in RMB
| Item | As at 30 June 2021 | As at 31 Dec 2020 | Causes |
Note:
51. Deferred income
Presented in RMB
| Item | As at 31 Dec 2020 | Additions during the year | Reductions during the year | As at 30 June 2021 | Reason for deferral |
details of deferred income – government grant:
Presented in RMB
| species | As at 31 Dec 2020 | New subsidy amount of this period | Amount booked into non-operating income for the current period | Amount booked into other income for the current period | The amount of the current period carried forward to reduce related costs | other change | As at 30 June 2021 | Relating to assets/earnings |
52. Other non-current liabilities
Presented in RMB
| Item | As at 30 June 2021 | As at 31 Dec 2020 |
53、Share capital
Presented in RMB
| As at 31 Dec 2020 | Increase or decrease of current period (+, -) | As at 30 June 2021 | |||||
| New shares | Stock dividand | Conversion from reserve to shares | Others | Subtotal | |||
| The total number of shares | 1,011,660,000.00 | 1,011,660,000.00 | |||||
54. Other equity instruments
（1）Basic information on preferred stock, perpetual debt and other financial instruments outstanding atthe end of the period:
（2）movement on preferred stock, perpetual debt and other financial instruments outstanding at the endof the period:
Presented in RMB
| issued Financial instruments | As at 31 Dec 2020 | Increase in | The reduced | As at 30 June 2021 | ||||
| Numbers | Book value | Numbers | Book value | Numbers | Book value | Numbers | Book value | |
the change of the increase or decrease of other equity instruments in the current period, the reasons
for the change, and the relevant accounting treatment basis.
55. Capital reserves
Presented in RMB
| Item | As at 31 Dec 2020 | Increase in current period | The reduced in current period | As at 30 June 2021 |
| 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:
56. Inventory stocks
Presente
| Item | As at 31 Dec 2020 | Increase in current period | The reduced in current period | As at 30 June 2021 |
Reason for movements in capital reserves:
57. Other comprehensive income
Presented in RMB
| Item | As at 31 Dec 2020 | Current amount | As at 30 June 2021 | |||||
| The current income tax before the amount | Less: the amount counted to the profit and loss during the reporting period which had been Less: the amount counted to the retained earnings during the reporting period | Less: the amount counted to the profit and loss during the reporting period which had been Less: the amount counted to the retained earnings during the reporting period | Less: Income tax expense | Attributa ble to the parent company after tax Attributa ble to minority sharehold ers after tax | Attributa ble to the parent company after tax Attributa ble to minority sharehold ers after tax | |||
| I. Other comprehensive income that cannot be reclassified into profits and losses | 15,034,964.83 | 570,414.67 | 570,414.67 | 15,605,379.50 | ||||
| Changes in the fair value of other equity instrument investments | 15,034,964.83 | 570,414.67 | 570,414.67 | 15,605,379.50 | ||||
| II.Other comprehensive income which is reclassified into profit and loss | 13,128,085.30 | 582,982.61 | 0.00 | 0.00 | 582,982.61 | -693,845.59 | 13,711,067.91 | |
| Translation differences arising from translation of foreign currency financial statements | 13,128,085.30 | 582,982.61 | 582,982.61 | -693,845.59 | 13,711,067.91 | |||
| Total | 28,163,050.13 | 1,153,397.28 | 0.00 | 0.00 | 1,153,397.28 | -693,845.59 | 29,316,447.41 | |
58. Specific reserve
Presented in RMB
| Item | As at 31 Dec 2020 | Additions during the year | Reductions during the year | As at 30 June 2021 |
Reason for changes in specific reserve in current period:
59、Surplus reserve
Presented in RMB
| Item | As at 31 Dec 2020 | Additions during the year | Reductions during the year | As at 30 June 2021 |
| Statutory surplus reserve | 218,724,273.67 | 218,724,273.67 | ||
| Total | 218,724,273.67 | 218,724,273.67 |
Note: According to the "Company Law" and the company's articles of association, the companyappropriates a statutory surplus reserve at 10% of its net profit. It will no longer be appropriated if theaccumulative amount of statutory surplus reserve reaches more than 50% of the company's registeredcapital
60. Retained earnings
Presented in RMB
| Item | Year ended 30 June 2021 | Year ended 30 June 2020 |
| Before adjustment: Retained earnings at the end of the previous period | 1,560,720,254.31 | 1,464,915,816.81 |
| After adjustment: Retained earnings at the beginning of the reporting period | 1,560,720,254.31 | 1,464,915,816.81 |
| Add: Net profits for the year attributable to shareholders of the Group | 132,447,122.14 | 97,274,985.72 |
| Dividends payable to ordinary shares | 88,014,420.00 | 166,923,900.00 |
| Retained earnings at the end of the reporting period | 1,605,152,956.45 | 1,395,266,902.53 |
Adjustments on beginning retained earnings are as follows:
1). Retrospective adjustments of RMB 0.00 made on beginning retained earnings in accordance withCAS and related 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 frombusiness combinations involving entities under common control.
5). RMB 0.00 on beginning retained earnings due to other adjustments.
61. Operation Income and Costs
Presented in RMB
| Item | Year ended 30 June 2021 | Year ended 30 June 2020 | ||
| Income | costs | Income | costs | |
| Principal activities | 689,047,393.48 | 330,844,214.47 | 592,168,994.82 | 342,975,012.09 |
| Other operating activities | 5,550,824.99 | 1,131,464.08 | 4,089,500.58 | 933,075.37 |
| Total | 694,598,218.47 | 331,975,678.55 | 596,258,495.40 | 343,908,087.46 |
Income related information:
Presented in RMB
| Contract type | Segment 1 | Segment 2 | Total |
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 developmentis completed and pass the acceptance; (3) For Lump-sum payment, revenue is recognized by the groupwhen the consideration is fully received. For instalment payment, revenue is recognized when the firstinstallment has been received and the bank mortgage approval procedures have been completed. (4)completed the procedures for entering the partnership in accordance with the requirements stipulatedin 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 performanceobligations that have been signed but not yet performed or not yet completed is RMB 515,922,852.72yuan, Among them, RMB 400,000,000.00 yuan is expected to be recognized as revenue in 2021, RMB115,922,852.72 is expected to be recognized as revenue in the year 2022, and RMB 0 yuan is expectedto be recognized as revenue in the year.
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 | ChuanQi DongHu Building | 429,251,936.21 |
| 2 | Shengfang CuiLin Building | 11,483,673.34 |
| 3 | TianYue Bay No.1 | 38,827,292.52 |
| 4 | YueJing dongfang Project | 394,038.10 |
| 5 | Jinye Island | 0 |
62. Taxes and surcharges
Presented in RMB
| Item | Current amount | Amount of previous period |
| Urban maintenance and construction tax | 2,116,459.71 | 1,825,068.95 |
| Education surcharge | 939,297.22 | 811,262.23 |
| Property tax | 4,661,338.71 | 2,110,622.87 |
| Land use tax | 53,795.62 | 107,733.28 |
| Vehicle and vessel usage tax | 6,030.00 | 4,710.00 |
| Stamp duty | 380,892.76 | 213,285.17 |
| Land appreciation tax | 138,238,943.94 | 79,824,750.12 |
| Local education surcharge | 569,112.63 | 491,930.13 |
| Embankment protection fees | 393,247.80 | 218,750.12 |
| Total | 147,359,118.39 | 85,608,112.87 |
Note: the tax and additional payment standards are detailed in Note VI. Tax.
63. Selling and distribution expense
Presented in RMB
| Item | Current amount | Amount of previous period |
| Employee benefits | 1,989,941.91 | 2,823,089.29 |
| Advertising expenses | 1,917,769.32 | 1,284,043.70 |
| Entertainment expenses | 250,432.76 | 238,746.50 |
| commissions | 9,360,189.39 | 3,615,467.32 |
| Others | 3,297,266.68 | 575,101.57 |
| Total | 16,815,600.06 | 8,536,448.38 |
Note:
64. General and administrative expenses
Presented in RMB
| Item | Current amount | Amount of previous period |
| Employee benefits | 30,479,393.18 | 33,335,370.04 |
| Taxes | ||
| Depreciation | 1,394,723.83 | 1,362,176.52 |
| Entertainment expenses | 1,342,134.54 | 820,263.83 |
| Professional fee | 980,491.44 | 337,923.08 |
| Travel expense | 33,943.63 | 16,813.77 |
| Office expenses | 998,969.38 | 628,812.36 |
| Maintenance expenses | 395,206.71 | 395,651.84 |
| Utilities | 278,307.83 | 190,945.62 |
| Amortization | 227,695.45 | 150,041.78 |
| Others | 4,168,718.23 | 3,015,978.42 |
| Total | 40,299,584.22 | 40,253,977.26 |
Note：
65. Research and development expense
Presented in RMB
| Item | Current amount | Amount of previous period |
66. Financial expense
Presented in RMB
| Item | Current amount | Amount of previous period |
| Interest expense | 38,742.51 | |
| Less: Interest income | 16,398,025.57 | 5,932,973.60 |
| Less: capitalized interest | ||
| Exchange losses/-gains | -201,900.59 | -28,526.54 |
| Less: Exchange losses and gains capitalized | ||
| Others | 185,438.57 | 213,914.16 |
| Total | -16,414,487.59 | -5,747,585.98 |
67. Other Income
Presented in RMB
| Item (Source of other income) | Current amount | Amount of previous period |
| Input VAT deduction | 643,733.52 | 557,379.14 |
68. Investment Income
Presented in RMB
| Item | Current amount | Amount of previous period |
| Financial product | 15,217,058.60 |
| Total | 15,217,058.60 |
69. Net exposure hedging income
Presented in RMB
| Item | Current amount | Amount of previous period |
70. 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 | 2,329,484.00 | |
| Total | 2,329,484.00 |
Note:
The group purchased monetary fund at 13 billion yuan in early June 2021 and one month income is2,329,484.00 yuan.
71. Credit impairment loss
Presented in RMB
| Item | Current amount | Amount of previous period |
| Bad debt losses on other receivables | 1,142,580.28 | |
| Total | 1,142,580.28 |
72. Impairment loss of assets
Presented in RMB
| Item | Current amount | Amount of previous period |
| Bad debt loss | 534,500.00 | |
| Total | 534,500.00 |
73. Income from asset disposal
Presented in RMB
| Source of asset disposal | Current amount | Amount of previous period |
74. Non-operating income
Presented in RMB
| Item | Current amount | Amount of previous period | Amount booked into current |
| non-recurring profits and losses | |||
| Government subsidies | 2,792,616.39 | ||
| Confiscated income | 1,352,709.50 | 70,000.00 | |
| Others | 18,048.38 | 39,417.38 | |
| Total | 1,370,757.88 | 2,902,033.77 |
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 |
75. Non-operating expenses
Presented in RMB
| Item | Current amount | Amount of previous period | Amount counted to the current non-operating gain and loss |
| Donations provided | 500,000.00 | ||
| Others | 25,246.47 | 1,501,278.48 | |
| Total | 25,246.47 | 2,001,278.48 |
76. Income tax expense
（1）Details of income tax expenses
Presented in RMB
| Item | Current amount | Amount of previous period |
| Current tax expense for the year | 47,841,099.11 | 43,599,689.97 |
| Total | 47,841,099.11 | 43,599,689.97 |
（2）Reconciliation between income tax expenses and accounting profit is as follows:
Presented in RMB
| Item | Current amount |
| Profits/losses before tax | 180,024,034.05 |
| Expected income tax expenses at applicable tax rate | 45,006,008.51 |
| Effect of different tax rates applied by subsidiaries | 0.00 |
| Effect of non-deductible costs, expenses and losses | 2,835,090.60 |
| Income tax expenses | 47,841,099.11 |
77. Other comprehensive income
Refer to Note VII. 57 for details.
78. Cash Flow Statement
（1）Proceeds from operating activities
Presented in RMB
| Item | Current amount | Amount of previous period |
| Interest income | 16,145,175.19 | 5,407,752.35 |
| Deposits and security deposits | 4,840,752.27 | 2,919,486.01 |
| Maintenance Fund | 48,921.12 | 588,849.58 |
| Collecting fee for certifications on behalf | 196,503.48 | 259,013.65 |
| Others | 226,919,277.33 | 33,335,274.12 |
| Total | 248,150,629.39 | 42,510,375.71 |
Note to Proceeds from other operating activities:
（2）Payment for other operating activities
Presented in RMB
| Item | Current amount | Amount of previous period |
| Payment for general and administrative expenses | 5,877,859.14 | 5,953,780.78 |
| Payment for selling and distribution expenses | 12,305,839.37 | 10,827,564.54 |
| Deposits and security deposits | 3,809,037.95 | 2,573,686.00 |
| Paying fee for certifications on behalf | 46,643.34 | 75,218.11 |
| Others | 324,877,972.54 | 89,300,550.71 |
| Total | 346,917,352.34 | 108,730,800.14 |
Note to payment for other operating activities:
（3）Proceeds from other investing activities
Presented in RMB
| Item | Current amount | Amount of previous period |
| Restricted cash recovered in the current period – structured deposit | 1,000,000,000.00 | |
| Total | 1,000,000,000.00 |
Note to proceeds from other investing activities:
（4）Payment for other investing activities
Presented in RMB
| Item | Current amount | Amount of previous period |
| Purchasing monetary fund | 1,300,000,000.00 | |
| Total | 1,300,000,000.00 |
Note to payment for other investing activities:
The group purchased 13billions yuan monetary fund in June 2021.
（5）Proceeds from other financing activities
Presented in RMB
| Item | Current amount | Amount of previous period |
| Borrowing from minority shareholders | 331,178,702.21 | |
| Total | 331,178,702.21 |
Note to proceeds from other financing activities:
One of shareholder (Guangzhou Bopi) of Jianbang company lent 331,178,702.21 yuan to Jianbang.
（6）Payment for other financing activitie
Presented in RMB
| Item | Current amount | Amount of previous period |
Note to payment for other financing activities:
79. Supplementary information of the cash flow statemen
（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 | 132,182,934.94 | 97,309,458.47 |
| Add: Provisions for impairment of assets | ||
| Depreciation of Fixed Assets, Depreciation of Investment Real Estate, Depreciation of Oil and Gas Assets, Depreciation of Productive Biological Assets | 13,557,880.81 | 13,145,126.03 |
| Depreciation of Usability Assets | ||
| Amortization of intangible assets | ||
| Amortization of long-term prepaid expenses | 59,919.67 | 59,662.86 |
| Loss on disposal of fixed assets, intangible assets and other long-term assets (marked with "-" for gains) | -10,871.50 | |
| Loss on the scrapping of fixed assets (marked with "-" for income) | 1,598.00 | 17,829.60 |
| Loss from changes in fair value (marked with "-" for earnings) | -2,329,484.00 | |
| Financial expenses (revenue marked with "-") | -2,274,549.67 | 3,135,908.80 |
| Loss on investment (marked with "-" for income) | 0.00 | -15,217,058.60 |
| Deferred tax assets decreased (marked with "-" for increase) | 8,457,756.18 | 7,327,401.98 |
| Deferred tax liability increased (marked with "-" for decrease) | 0.00 | -4,903,293.58 |
| Decrease in stock (marked with "-" for increase) | -799,115,376.98 | 186,722,872.58 |
| Decrease of operating receivable items (marked with "-" for increase) | 201,580,001.54 | -225,749,300.15 |
| Increase in operational payable items (marked with "-" for decrease) | 162,251,243.69 | -274,147,130.87 |
| Other | 98,195.86 | 55,724.29 |
| Net cash flow from operating activities | -285,540,751.46 | -212,242,798.59 |
| 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 | 876,192,880.75 | 2,148,222,433.87 |
| Minus: Opening balance of cash | 2,669,103,926.82 | 1,507,189,760.35 |
| Plus: ending balance of cash equivalents | ||
| Minus: Beginning balance of cash equivalents | ||
| Net increase in cash and cash equivalents | -1,792,911,046.07 | 641,032,673.52 |
（2）The net cash of the subsidiary paid in the current period
Presented in RMB
| Item | Amount |
| Businesses incurred in the current period are consolidated into cash or cash equivalents paid in the current period | 450,000,000.00 |
| Including： | -- |
| Less: Cash and cash equivalents held by the Group on the date of purchase | 118,241.85 |
| Including： | -- |
| To obtain the net cash amount paid by the subsidiary | 449,881,758.15 |
Note:
On 30 April 2021, the group acquired 51% equity of Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd.at 45,000 tenthousand yuan.
（3）Net cash received for disposal of subsidiaries during the current period
（4）Composition of cash and cash equivalents
Presented in RMB
| Item | Ending balance | Opening balance |
| Cash | 876,192,880.75 | 2,669,103,926.82 |
| Closing cash and cash equivalents balance | 876,192,880.75 | 2,669,103,926.82 |
80. Notes for items in the statement of changes in shareholders' equity
Note of the nature and amount of adjustment of "other" items adjusting the balance at the end of lastyear.
81. Assets whose ownership or use rights are restricted
Presented in RMB
| Item | Ending book value | Limited reason |
| Notes receivable | 7,818,054.79 | endorse or discount a commercial acceptance bill before maturity |
| Accounts receivable | 62,955,085.79 | Short-term loan pledge |
| Total | 70,773,140.58 | -- |
82. 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 | 40,345.54 | 6.4578 | 260,543.43 |
| The euro | |||
| Hong Kong dollars | 7,447,992.80 | 0.8320 | 6,197,102.41 |
| Accounts receivable | -- | -- | |
| Including: US dollar | |||
| The euro | |||
| Hong Kong dollars | 4,905,150.10 | 0.8320 | 4,081,330.14 |
| Long-term borrowing | -- | -- | |
| Including: US dollar | |||
| The euro | |||
| Hong Kong dollars | |||
| Other receivables | |||
| Including: US dollar | -- | ||
| Hong Kong dollars | 20,165,086.70 | 0.8320 | 16,778,360.39 |
| Other payables | |||
| Including: US dollar | 655,299.33 | 6.4578 | 4,231,792.01 |
| Hong Kong dollars |
Note:
The company’s important overseas business entities are Great Wall Real Estate Co., Ltd. and XinfengEnterprise Co., Ltd. Since Great Wall Real Estate Co., Ltd. is mainly operating in the United States, itchooses the US dollar as the functional currency; Xinfeng Enterprise Co., Ltd. is an investmentcompany, the main business activities of its investment entities are all in mainland China, and the RMBis used as the standard currency for bookkeeping, so it chooses RMB as the standard currency forbookkeeping.
（2）Note to overseas operating entities, including important overseas operating entities, which should bedisclosed about its principal business place, function currency for bookkeeping and basis for the choice. Incase of any change in function currency, the cause should be disclosed.
□ Applicable √ Not Applicable
83. Hedging
The qualitative and quantitative information of the hedge item, the related hedge instrument andthe hedged risk shall be disclosed according to the hedge Types.
84. Government subsidies
（1）Basic information of government subsidies
Presented in RMB
| Categories | Amount | Items presented | Amount counted to the current profit and loss |
（2）Refunding of the government subsidies
□ Applicable √ Not Applicable
85．Other
VIII．Change of consolidation scope1． Business combinations involving enterprises not under common control
（1）Business combinations involving enterprises not under common control occurred during the year
Presented in RMB
| Acquiree | Acquisition date of equity investment | Cost of equity investment | Shareholding acquired % | Acquisition method | Acquisition date | Basis of acquisition date determination | Acquiree’s income from acquisition date to 2021.6.30 | Acquiree’s net profit from acquisition date to 2021.6.30 |
（2）Acquisition cost and goodwill
The method for determining the fair value of the combined cost and the note to Contingentconsideration and its movement:
The main reason for the formation of large amount of goodwill：
Other Note：
（3）Identifiable assets and liabilities of the acquiree at the acquisition date
The method of determining fair value of identifiable assets and liabilities:
The contingent liability of the acquiree assumed in business combination:
Other note：
（4）Gain or loss from remeasurement of equity interests held prior to acquisition date to fair value
Whether there are multiple transactions to achieve the business merger step by step and gain controlduring the reporting period
□ Yes √ No
（5）If it is impossible to reasonably determine the merger consideration or the fair value of the assets andliabilities recognized by the purchaser on the purchase date or at the end of the current period, the Groupshall 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
| Acquiree | Proportion of equity interests acquired in business combination | Basis for business combination under common control | Combination date | Basis for determination of combination date | Income from the beginning of the year to the combination date | Net profit from the beginning of the year to the combination date | Acquiree’s income for half-year 2020 | Acquiree’s net profit for half-year 2020 |
（2）Combination cost
Note to contingent consideration and its movement:
Other note：
（3）Book value of merged party’s assets and liabilities in combination date
The contingent liabilities of the merged party assumed in a business combination:
Other note：
3. Reverse buying
Basic Trading information, the basis of reverse purchase, whether the assets and liabilities retained bythe listed company and its judgment and determination method of the combination costs, transactionconfirmation of goodwill or accounted for as current profit or loss or adjust the amount of rights andits calculation process:
4. Disposal of subsidiaries
Whether subsidiaries reduced due to single disposal until loss of control
□ Yes √ No
Whether exist multiple transactions to dispose of the equity step by step to the loss of control and thereduction of the subsidiary
□ Yes √ No
5. Other reason for change of consolidation scope
Explain the changes in the scope of the merger caused by other reasons (such as the establishment of anew subsidiary or liquidation of a subsidiary)：
At 30April 2021, the Group signed “Cooperative Development Agreement” and “managemententrusting agreement” with relevant parties, and decided to purchase 51% equity of GuangdongJianbang Group (Huiyang) Industrial Co., Ltd.(abbr: Jianbang company) which is held by GuangzhouBopi Enterprise Management Consulting Co., LTD using its own funds at 450,000,000.00 yuan. At 11May 2021, transacting parties completed the registration of shareholding change according to thecontract, Jianbang company is under the group’s actual control after the transaction.The group has rights to variable returns from its involvement with the Jiangbang company and has theability to affect its returns through its power over the Jianbang. The essence of this acquisition ismainly to obtain products to be developed and products in progress which are main assets of theJianbang company.
6. Other
IX. Interest in other entities
1． Interests in subsidiaries
（1）Composition of the Group
| Name | 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 City Property Management Ltd. | Shenzhen | Shenzhen | Property management | 95.00% | 5.00% | 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 |
| Shenzhen Special Economic Zone Real Estate (Group) Guangzhou Property and Estate Co., Ltd. | Shenzhen | Shenzhen | Real estate development | 95.00% | 5.00% | 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 |
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 morethan half of 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 note：
①In consolidation scope, there are five subsidiaries in “revoked but not cancelled” condition: BeijingSPG Property Management Limited, Guangzhou Huangpu Xizun real estate limited company,Shenzhen Special Economic Zone Real Estate (Group) Guangzhou Property and Estate Co., Ltd.,Fresh Peak Real Estate Dev. Construction (Wuhan) Co. Ltd. and Beijing Shenfang PropertyManagement Co., Ltd. They are presented on the basis of discontinued operations; these fivesubsidiaries have made full provision for impairment of debt for the companies outside theconsolidation scope.
②The cancelled, revoked and closed subsidiaries of the Company that are not included in the scope of
consolidation are as follows:
| Name | Principal place of business | Registration place | Business nature | Shareholding proportion | Way of acquisition | |
| 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 | Electromecha nical 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 to terminate the business and establish a liquidation team to conduct the liquidation. Theliquidation team issued a liquidation report on 7 December, 2007.
2. Paklid Limited, Bekaton Property Limited and Canada Great Wall (Vancouver) were established bythe group abroad in the early years. On 13 December 2000, the group held a board meeting anddecided to liquidate these 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. (includingtangible and intangible asset) were auctioned by the court on 22 January 2019, becoming a shellcompany.
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 onthe merger of Shenzhen Zhen Tung Engineering Ltd and Shenxi Limited” (Shenfang [1997] No.19),all businesses form Shenxi Limited were undertaken by Shenzhen Zhen Tung Engineering Ltd andShenxi Limited and were revoked on 8 February 2002.The group could no longer effectively control these invested companies which have not been includedin the consolidation scope were either been cancelled or ceased operation many years ago, and were nolonger exist. According to “Accounting Standard for Business Enterprises No. 33-ConsolidatedFinancial Statements”, the group already accrued full amount of impairment for the book value of thenet investment in above companies which are not included in the consolidated scope.
（2）Material non-wholly owned subsidiaries
Presented in RMB
| Name | 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 2021.6.30 |
| Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd. | 49.00% | -225,833.76 | 432,167,344.39 | |
| Great Wall Estate Co., Inc | 30.00% | -38,353.44 | -20,397,557.81 | |
| Fresh Peak Investment Ltd | 45.00% | -1,419.08 | -116,180,431.36 | |
| Barenie Co. Ltd. | 20.00% | 47.62 | -3,886,968.79 |
Note to shareholding ratio of minority shareholder is different from the voting ratio:
Note:
（3）Key financial information about material non-wholly owned subsidiaries
Presented in RMB
| Name | As at 30 June 2021 | As at 30 June 2020 | ||||||||||
| 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 | |
| Guangdong | 1,023,093,139.34 | 8,935.68 | 1,023,102,075.02 | 1,024,651,992.31 | 0.00 | 1,024,651,992.31 | 282,015,748.59 | 0.00 | 282,015,748.59 | 282,685,044.37 | 0.00 | 282,685,044.37 |
| Jianbang Group (Huiyang) Industrial Co., Ltd. | ||||||||||||
| Great Wall Estate Co., Inc | 260,543.43 | 17,842,591.43 | 18,103,134.86 | 100,382,145.99 | 0.00 | 100,382,145.99 | 135,920.52 | 18,027,985.50 | 18,163,906.02 | 101,822,102.87 | 0.00 | 101,822,102.87 |
| Fresh Peak Investm ent Ltd | 4,760.68 | 36,016.90 | 40,777.58 | 258,219,596.96 | 0.00 | 258,219,596.96 | 4,769.05 | 36,016.90 | 40,785.95 | 258,216,451.81 | 0.00 | 258,216,451.81 |
| Barenie Co. Ltd. | 974.33 | 0.00 | 974.33 | 32,895,188.97 | 0.00 | 32,895,188.97 | 985.56 | 0.00 | 985.56 | 32,895,438.31 | 0.00 | 32,895,438.31 |
Presented in RMB
| Name | Year ended 2021.6.30 | Year ended 2020.6.30 | ||||||
| Operating income | Net profit | Total comprehensive income | Cash flows from operating activities | Operating income | Net profit | Total comprehensive income | Cash flows from operating activities | |
| Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd. | 0.00 | -880,621.51 | -880,621.51 | -666,756,866.68 | ||||
| Great Wall Estate Co., Inc | 260,141.10 | -127,844.80 | -127,844.80 | 128,668.43 | 142,264.71 | 114,909.18 | 114,909.18 | 114,087.11 |
| Fresh Peak Investm ent Ltd | 0.00 | -3,153.52 | -3,153.52 | 0.00 | 0.00 | -15,714.16 | -15,714.16 | 0.00 |
| Barenie Co. Ltd. | 0.00 | 238.11 | 238.11 | 0.00 | 0.00 | -15,775.13 | -15,775.13 | 0.00 |
（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 statements
2. Transactions that cause changes in the Group’s interests in subsidiaries that do not result in loss ofcontrol
（1）① Changes in the Group’s interests in subsidiaries:
（2）Impact from transactions with non-controlling interests and equity attributable to the shareholders ofthe Group:
3. Interests in joint ventures or associates
（1）Material joint ventures or associates
| Name | Principal place of business | Registration place | Business nature | Shareholding (%) | Accounting treatment of investments in joint ventures or associates | |
| Direct | Indirect | |||||
Note to shareholding ratio is different from the voting ratio in Joint ventures or associates:
The basis of holding less than 20% of the voting rights but still has a material impact on and holdingmore than 20% of the voting rights but do not have a material impact on:
（2）Key financial information of material joint ventures:
（3）Key financial information of material associates:
（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 reporting period | |
| Joint ventures: | -- | -- |
| Aggregate carrying amount of investments | 377,489.68 | 377,489.68 |
| Aggregate amount of share of | -- | -- |
| Associates: | -- | -- |
| Aggregate amount of share of | -- | -- |
| Net profit | -92,348.97 |
（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 year | Accumulated unrecognized loss as at 2021.6.30 |
| Shenzhen Fresh Peak property consultant Co., Ltd | 1,095,961.55 | 1,121,994.34 | 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 June2021, the group contributed RMB 600,000 and already confirmed long-term equity invent lose RMB600,000.
（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 | Principal place of business | Registration place | Business nature | Shareholding/Share of net assets (%) | |
| Direct | Indirect | ||||
Note to shareholding ratio is different from the voting ratio in Joint operations:
The basis of classifying separate entities as joint operation:
Other note:
5、Interests and interests in structured entities not included in the scope of consolidated financial statements
Note 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,Other current assets, accounts receivable, other equity instrument investments, accounts payable, otherpayables, short-term borrowing, long-term payables. Details of the various financial instruments aredisclosed in the relevant notes. The risks associated with these financial instruments and the riskmanagement policies adopted by the Group to mitigate these risks are described below. The
management of the Group manages and monitors these exposures to ensure that these risks arecontained 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 strive to reduce the adverse impact of financial risks on the Group's financial performance. Basedon this risk management objective, the Group has developed a risk management policy to identify andanalyze the risks faced by the Group, set an appropriate acceptable risk level and design thecorresponding internal control procedures to monitor the risk level of the Group.The Group regularlyreviews these risk management policies and the relevant internal control systems to adapt to marketconditions or changes in the Group's business activities. The Group's internal audit department alsoregularly or randomly checks whether the implementation of the internal control system complies withthe 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 managementstructure, formulating the Group's risk management policies and relevant guidelines and overseeing theimplementation of risk management measures. The Group has developed risk management policies toidentify and analyze the risks faced by the Group. These risk management policies clearly stipulatespecific risks, covering market risk, credit risk, liquidity risk management and many other aspects. TheGroup regularly evaluates changes in the market environment and the Group's business activities todetermine whether to update its risk management policies and systems.The Group diversifies the risks of financial instruments through appropriate diversification of itsportfolio of investments and businesses, and reduces the risk of concentration in a single industry, aspecific region or a specific counterparty through the development of appropriate risk managementpolicies.
（1）Credit risk
Credit risk refers to the risk of financial loss to the Group resulting from the failure of thecounterparty to fulfill its contractual obligations.The Group manages credit risks according to portfolio classification. Credit risks mainly arise frombank deposits, notes receivable, accounts receivable, other receivables.The Group's bank deposits are mainly held in state-owned banks and other large and medium-sizedlisted banks (or mainly in financial institutions with good reputations and high credit ratings), and theGroup does not expect that the bank deposits will pose a significant credit risk.For notes receivable, accounts receivable, other receivables and long-term receivables, the Group setspolicies to control credit risk exposure. The Group evaluates customers' credit qualifications and setscredit periods based on their financial status, credit history and other factors such as current marketconditions. The Group will regularly monitor the credit records of customers. For customers with poorcredit records, the Group will use written methods to urge payment, shorten the credit period or cancelthe credit period to ensure that the overall 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.The Group continuously conducts credit assessments on the financial position of accountsreceivable and, where appropriate, takes out credit guarantee insurance.The maximum credit risk exposure of the Group is the carrying amount of each financial asset on thebalance sheet. The Group does not provide any other security which may expose the Group to a creditrisk.Of the Group's accounts receivable, the accounts receivable of the top five customers account for
64.64% of the Group's total accounts receivable (in 2020: 53.97%); Among other receivables of theGroup, other receivables from the top five companies in arrears amount to 65.49% (2020: 61.40%) ofthe total amount of other receivables of the Group.
（2）Liquidity risk
Liquidity risk refers to the risk that the Group will encounter a shortage of funds when fulfilling itsobligations to settle by delivering cash or other financial assets.In managing liquidity risks, the Group maintains and monitors cash and cash equivalents deemedsufficient by the management to meet the operational needs of the Group and to reduce the impact ofcash flow fluctuations. The Group's management monitors the use of bank borrowings and ensurescompliance with borrowing agreements. It also secured a commitment from major financial institutionsto provide adequate standby funds to meet short - and long-term funding needs.The Group finances its working capital through funds generated from its operations and bank andother borrowings. As at 30 June 2021, the Group's unutilized bank loan amount is RMB 0 million (31December 2020: RMB 0 million).At the end of the period, the maturity analysis of the financial assets, financial liabilities and off-balancesheet guarantee items held by the Group according to the undiscounted remaining contract cash flow isas follows (unit: RMB 10,000) :
| Item | 2021.6.30 | |||
| Within one year | Within one to five years | More than five years | Total | |
| Financial liabilities: | ||||
| Notes payable | 33,099.30 | |||
| Short-term loans | 7,077.31 | -- | -- | 7,077.31 |
| Accounts payable | 9,975.27 | -- | -- | 9,975.27 |
| Interest payables | 1,653.53 | -- | -- | 1,653.53 |
| Other payables | 33,117.87 | -- | -- | 33,117.87 |
| Long-term payables | -- | 824.56 | -- | 824.56 |
| Guarantees for client | 38,059.74 | -- | -- | 38,059.74 |
| Total financial liabilities and contingent liabilities | 89,883.72 | 824.56 | -- | 90,708.28 |
At the beginning of the period, the maturity analysis of the financial assets, financial liabilities andoff-balance sheet guarantee items held by the Group according to the undiscounted remaining contractcash flow is as follows (unit: RMB 10,000) :
| Item | 2020.12.31 | |||
| Within one year | Within one to five years | More than five years | Total | |
| Financial liabilities: | ||||
| Short-term loans | 7,689.40 | 7,689.40 | ||
| Accounts payable | 17,692.66 | 17,692.66 | ||
| Interest payables | 1,653.53 | - | 1,653.53 | |
| Other payables | 26,056.99 | 26,056.99 | ||
| Long-term payables | 748.02 | 748.02 | ||
| Guarantees for client | 37,135.79 | 37,135.79 | ||
| Total financial liabilities and contingent liabilities | 90,228.36 | 748.02 | - | 90,976.38 |
The amount of financial liabilities disclosed in the above table is undiscounted contractual cash flowsand may be 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 tobe paid.
（3）Market risks
The market risk of financial instruments refers to the risk that the fair value or future cash flow offinancial instruments will fluctuate due to market price changes, including interest rate risk, exchangerate risk and other price risks.Interest rate riskInterest rate risk refers to the risk that the fair value of a financial instrument or future cash flow willfluctuate due to changes in market interest rates. Interest rate risk can arise from recognizedinterest-bearing financial instruments and from unrecognized financial instruments (such as certainloan commitments).The interest rate risk of the Group mainly arises from long-term bank borrowings. Floating interestrate financial liabilities expose the Group to cash flow interest rate risk, while fixed interest ratefinancial liabilities expose the Group to fair value interest rate risk. The Group determines the relativeproportion of fixed and floating rate contracts based on prevailing market conditions and maintains anappropriate mix of fixed and floating rate instruments through regular review and monitoring.During the reporting period, the Group operates by its own working capital. As at 30 June 2021, theGroup has no financial liabilities with fixed or floating interest rate, such as bank loan. Therefore, theGroup believes that the interest rate risk is insignificantCurrency riskThe term "exchange rate risk" refers to the risk that the fair value of a financial instrument or futurecash flow will fluctuate due to changes in foreign exchange rates. Exchange rate risk can arise fromfinancial instruments denominated 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 rate fluctuations. In addition to the subsidiary established in Hong Kong holding assets inHong Kong dollar as the settlement currency, only a small amount of Hong Kong market investmentbusiness, the group's foreign currency assets and liabilities accounted for the overall assets and liabilitiesof the proportion is not significant. Therefore, the Group believes that the exchange rate risk is notsignificant.
2. Capital management
The objective of the Group's capital management policy is to ensure that the Group can continue as agoing concern, thereby providing a return to shareholders and benefiting other stakeholders, whilemaintaining an optimal capital structure to reduce the cost of capital.In order to maintain or adjust its capital structure, the Group may adjust its financing method, adjustthe amount of dividends paid to shareholders, return capital to shareholders, issue new shares andother equity instruments or sell assets to reduce its debt.The Group monitors the capital structure on the basis of the debt-to-asset ratio (i.e., total liabilitiesdivided by total assets). As at 30 June 2021, the Group's liability to asset ratio was 33.36% (31December 2020: 25.92%).
。
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 2021 | |||
| 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 | 1,302,329,484.00 | 1,302,329,484.00 | ||
| （3）Investments in other equity instrument | 38,081,275.18 | 38,081,275.18 | ||
| Total assets measured at fair value on a recurring basis | 1,340,410,759.18 | 1,340,410,759.18 | ||
| II. Non-recurring fair value measurements | -- | -- | -- | -- |
2. Basis for determining the market price of the items measured based on the continuous andnon-continuous first level fair value
3. Items measured based on the continuous or uncontinuous 2nd level fair value, valuation technique asused, nature of important parameters and quantitative information
4. Items measured based on the continuous or uncontinuous 3rd level fair value, valuation technique asused, nature of important parameters and quantitative information
| Within the capacity | Ending fair value | Valuation techniques | The input value cannot be observed | Range (weighted mean) |
| Equity instrument investment: | ||||
| Non-listed equity investments | 37,510,860.51 | Net asset method | Net assets in the book Liquidity discount | |
| Monetary fund | 1,302,329,484.00 |
5. Items measured based on the continuous 3rd level fair value, sensitivity analysis on adjusted informationand 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 the currentperiod, 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
The financial assets and financial liabilities of the Group measured at amortized cost mainly includemonetary funds, accounts receivable, other receivables, short-term borrowings, accounts payable, otherpayables, long-term payables, etc.Except for the following financial assets and financial liabilities, the carrying value of other financialassets and financial liabilities which are not measured at fair value varies very little from fair valueXII. Related parties and related party transactions
1. Information about the parent of the Group
| Name | Registration place | Business nature | Registered capital (RMB0,000) | Shareholding percentage % | Percentage of voting rights % |
| Shenzhen Investment Holdings Co., Ltd. | Shenzhen, Guangdong province | Investment, real estate development, guarantee | 2,764,900.00 | 57.19% | 57.19% |
Note to the information about the parent of the Group:
The ultimate controlling party of the Group is State-owned Assets Supervision and ManagementCommission of Shenzhen Municipal People’s Government.Other note:
2. Information about the subsidiaries of the Group
For information about the subsidiaries of the Group, refer to Note IX “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(4)“Summarized financial information of immaterial joint ventures and associates”.Joint ventures and associates that have related party transactions with the Group during this year or theprevious year are as follows:
| Name of joint ventures or associates | Relationship with the Group |
Other note:
4.Information on other related parties
| Name | Related party relationship |
| Shenzhen Jian ‘an Group Co., Ltd. | Same controlling shareholders |
| 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 Development Co., Ltd. | Not included in Consolidated Financial 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 | |
| Directors, Supervisors, CFO and Board secretary | Key management personnel |
5. Transactions with related parties
（1）Purchases/sales
Purchase of goods/receiving of services
Presented in RMB
| Related party | Nature of transaction | Year ended 2021.6.30 | Approved transaction limit | Whether it exceeds the transaction limit | Year ended 2020.6.30 |
| Shenzhen RongHua JiDian Co., Ltd | Elevator maintenance | 554,150.94 | No | 554,150.94 |
Sales of goods/rendering of services
Presented in RMB
| Related part | Nature of transaction | Year ended 2021.6.30 | Year ended 2020.6.30 |
| Shenzhen Jian'an Group Co., Ltd. | Decoration services | 2,600,000.00 | 1,484,806.59 |
| Shenzhen RongHua JiDian Co., Ltd | Property Services | 42,160.81 | 34,435.70 |
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 2021 |
Note:
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 2021 |
| Shantou City Huafeng Real | Shenzhen Jian'an Group Co., Ltd. | Construction | 19 Oct. 2018 | 1 May 2021 | Negotiations | 40,335,001.49 |
Note:
（3）Leases
As the lessor
Presented in RMB
EstateDevepment Co.,LtdLessee
| Lessee | Type of assets leased | Lease income recognized in 2021 | Lease income recognized in 2020 |
As the lessee
Presented in RMB
| Lesser | Type of assets leased | Lease expense recognized in 2021 | Lease expense recognized in 2020 |
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 | ||||
| Shenzhen Investment Shareholding Co. Ltd | 16,535,277.94 | 9 Nov. 2006 | 22 Dec 2016 | The principal of the loan was repaid on 22 December 2016, and the remaining amount was interest payable. |
（6）Transfer of assets and debt restructuring
Presented in RMB
Funds providedRelated party
| Related party | Nature of transaction | Year ended 2021.6.30 | Year ended 2020.6.30 |
（7）Remuneration of key management personnel
Presented in RMB
| Item | Year ended 2021.6.30 | Year ended 2020.6.30 |
| Remuneration of key management personnel | 3,399,100.00 | 2,252,200.00 |
（8）Other related party transactions
6. Receivables from and payables to related parties
（1）Receivables from related parties
Presented in RMB
| Item | Related party | As at 30 June 2021 | As at 30 June 2020 | ||
| 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 | 1,134,226.35 | 1,134,226.35 | 1,144,740.49 | 1,144,740.49 |
| 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 | Bekaton Property Limited | 19,450,684.59 | 19,450,684.59 | 18,870,785.54 | 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 | 23,761.17 | 475,223.46 | 23,761.17 |
| 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 Jian'an Group 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 2021 | As at 30 Jun 2020 |
| Interest payables | Shenzhen Investment Shareholding Co. Ltd | 16,535,277.94 | 16,535,277.94 |
| Accounts payable | Shenzhen Jian'an Group Co., Ltd. | 1,952,979.95 | 54,193,856.16 |
| Other payables | Shenzhen Dongfang New world store Co., Ltd | 902,974.64 | 902,974.64 |
| Other payables | Guangdong Province Fengkai Lain Feng 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 Development Co., Ltd. | 8,310,832.50 | 8,827,940.07 |
| 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 |
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 2021, there exist significant commitments.
1. Significant commitments
(1) Capital commitments
| Capital commitments entered into but not recognized in the financial statements | 2021.6.30 | 2020.12.31 |
| Material sales or purchases contracts | 173,791,112.22 | 153,945,220.09 |
Note: material sales or purchases contracts relates to Shantou Tianyue Bay No.2, which is signed withShenzhen Construction & Installation (Group) Co., Ltd. for engineering construction.
（2）Information on implementation of commitments in previous yearsRefer to note XII 5. (2).As at 30 June 2021, there is no material commitment to be disclosed.
2. Contingencies
（1）Contingent liabilities arising from pending arbitration and pending litigation and related financialimpact
| Plaintiff | Defendant | Case | Appellate court | Amount of the object of action | 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 | Shaanxi Higher People's Court | 36.62 million yuan and interest | Pending |
Note:
Xi’an Fresh Peak Holding limited company (hereinafter referred to as “Fresh Peak Company”) wasSino-foreign joint venture set up in Xi’an. Among them, Fresh Peak Enterprise Co., Ltd made 67% ofthe shares in cash. Xi’an Trade Building, a company directly under the Xi'an Commercial and TradeCommission (hereinafter referred to as "Xi'an C&T Commission"), invested 16% of the shares in landuse rights. Hong Kong Dadiwang Industrial Investment Company holds 17% of the shares. The corebusiness was property development. And the project was Xi’an Trade Building. The project was startedon 28 November 1995. But the project 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'anFresh Peak investment project compulsively and assigned the project to Xi’an Business Tourism Co.,Ltd (hereinafter referred to as “Business Tourism Company”). But two parties had insulted a lawsuit oncompensation. The ShanXi Province High Peoples Court made a judgement “(2000) SJ-CZ No.25”.The judgement was as follows: 1. Business Tourism Company had to pay for the compensation RMB36,620 thousand to Xi’an Fresh Peak Company after the judgment entering into force. If the BusinessTourism Company failed to pay in time, it had to pay double debt interests to Xi’an Fresh PeakCompany. 2. Xi’an Joint Commission on Commerce had jointly and severally obligation of the interestsof the compensation.By auctioning assets of Business Tourism Company, the amount of RMB 15,201,000.00 had beencalled back. The company has obtained new property clues, submitted an application for resumption ofexecution, this case is still pending until 30 June 2021.As at 30 June 2021, the book value of the long-term equity investment of Xi’an Fresh Peak Companyis RMB 32,840,729.61. The book balance of assets was RMB 8,419,205.19. Both have been taken fullprovision for impairment loss
（2）Contingent liabilities arising from guarantee provided to other entities and related financial effects.As at 30 June 2021, the Group provides commercial housing purchaser with guarantees at 37,135.79((RMB in ten thousand) for the following loans:
| Item | Duration | Amount (In ten thousand) | Note |
| Shengfang CuiLin Building | Until the Premises Permit mortgage registration is finished and in bank custody | 4,238.32 |
| ChuanQi DongHu Building (Former DongHuDiJing Building) | Until the Premises Permit mortgage registration is finished and in bank custody | 4,550.44 | |
| TianYue Bay | Until the Premises Permit mortgage registration is finished and in bank custody | 29,270.98 | |
| Total | 38,059.74 |
（4）Other contingencies（Not including contingent liabilities that are highly unlikely to result in an
outflow of economic benefits from the business）For information about contingency of joint venture or joint venture investment, refer to Note IX 3.
(4).
As at 30 June 2021, there is no other contingency to be disclosed.
2. Contingencies
（1）Significant contingencies exist on the balance sheet date
（2）It is necessary to explain if the group has no contingencies to be disclosed.There is no material contingencies to be disclosed.
3.Other
XV. Post balance sheet date events
1.Material post balance sheet date events
Presented in RMB
| Item | Nature | Effect on the financial position and financial performance | Reason for effect cannot be estimated |
2. Profit appropriations after the balance sheet date
3. Sales 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
6. Segment reporting
（1）The basis for determining the reporting segments and accounting policy
（2）Financial information of the reporting segments
（3）In case there is no reporting segment or the total assets and liabilities of the reporting segments cannotbe disclosed, explain the reason
（4）Other note
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 2021 | As at 30 June 2020 | ||||||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
| Amount | Proporti on | Amount | Provision proportion | Amount | Proporti on | Amount | Provision proportion | |||
| Bad debt provisions made on an individual basis | 9,564,213.19 | 96.84% | 9,564,213.19 | 100.00% | 0.00 | 10,132,205.24 | 65.08% | 10,132,205.24 | 100.00% | |
| Including： | ||||||||||
| Bad debt provisions made on a combination basis | 311,815.21 | 3.16% | 311,815.21 | 5,436,898.69 | 34.92% | 18,873.95 | 0.35% | 5,418,024.74 | ||
| Including： | ||||||||||
| Accounts receivable from related parties in consolidated scope | 311,815.21 | 3.16% | 0.00 | 0.00% | 311,815.21 | 5,059,419.69 | 32.50% | 0.00% | 5,059,419.69 | |
| Accounts receivable from property sales | 0.00 | 377,479.00 | 2.42% | 18,873.95 | 5.00% | 358,605.05 | ||||
| Total | 9,876,028.40 | 100.00% | 9,564,213.19 | 96.84% | 311,815.21 | 15,569,103.93 | 100.00% | 10,151,079.19 | 65.20% | 5,418,024.74 |
Bad debt provisions made on an individual basis: long-term accounts receivable from property sales
Presented in RMB
| Item | As at 30 June 2021 | |||
| Book balance | Bad debt provision | Percentage of provision | Rationale of Provision | |
| long-term accounts receivable from property sales | 9,564,213.19 | 9,564,213.19 | 100.00% | Expected to be uncollectable |
| Total | 9,564,213.19 | 9,564,213.19 | -- | -- |
Bad debt provisions made on an individual basis:
Presented in RMB
| Item | As at 30 June 2021 | |||
| Book balance | Bad debt provision | Percentage of provision | Rationale of Provision | |
Bad debt provisions made on a combination basis: related parties in consolidation scope
Presented in RMB
| Item | As at 30 June 2021 | ||
| Book balance | Bad debt provision | Percentage of provision | |
| More than 3 years | 311,815.21 | 0.00 | 0.00% |
| Total | 311,815.21 | 0.00 | -- |
Note to the basis for determining the combination:
Bad debt provisions made on a combination basis:：
Presented in RMB
| Item | As at 30 June 2021 | ||
| Book balance | Bad debt provision | Percentage of provision | |
Note to the basis for determining the combination:
Please refer to the way of disclosing other receivables’ bad debt provision to disclose relevantinformation, if the group choose to use general model of expected credit losses to accrue bad debts ofaccounts receivable.
□ Applicable √ Not Applicable
Disclosed by aging
Presented in RMB
| Aging | As at 30 June 2021 |
| Within 1 year (with 1 year inclusive) | 155,733.78 |
| Above 3 year | 9,720,294.62 |
| Above 5 year | 9,720,294.62 |
| Total | 9,876,028.40 |
（2）Additions, recoveries or reversals of provision for the current period
Provision for the current period:
Presented in RMB
| Types | As at 30 June 2020 | Amount changes in current period | As at 30 June 2021 | |||
| Provision | Recoveries or reversals | Written-off | Others | |||
| Bad debt provision | 10,151,079.19 | 586,866.00 | 9,564,213.19 | |||
| Total | 10,151,079.19 | 586,866.00 | 9,564,213.19 | |||
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 |
| Daxing Auto Parts Co., Ltd. | 1,890,563.21 | 19.14% | 1,890,563.21 |
| Weidong Wang | 1,200,000.00 | 12.15% | 1,200,000.00 |
| Guangyao Cai | 876,864.11 | 8.88% | 876,864.11 |
| Peitong Huang | 617,559.26 | 6.25% | 617,559.26 |
| Zhiying Zhang | 593,244.00 | 6.01% | 593,244.00 |
| Total | 5,178,230.58 | 52.43% |
（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 note：
2、Other receivables
Presented in RMB
| Item | As at 30 June 2021 | As at 30 June 2020 |
| Other receivables | 1,405,959,127.23 | 1,160,414,195.39 |
| Total | 1,405,959,127.23 | 1,160,414,195.39 |
（1）Interest receivable
1）Classification of interest receivable
Presented in RMB
| Item | As at 30 June 2021 | As at 30 June 2020 |
2）Significant overdue interest
| Borrowing unit | The ending balance | Overdue time (month) | Overdue reason | Whether impairment occurs and the basis for judgment |
Other note：
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 2021 | As at 30 June 2020 |
2）Significant dividends receivable overdue more than one year are as follows:
Presented in RMB
| Items (or invested units) | As at 30 June 2021 | Aging | Reasons for not retrieving | Whether impairment occurs and the basis for judgment |
3）Bad Debt Provisions
□ Applicable √ Not Applicable
Other note:
（3）Other receivables
1）Other receivables disclosure by nature
Presented in RMB
| Item | Book balance as at 30 June 2021 | Book balance as at 30 June 2020 |
| Other receivables from government | 165,460.00 | 165,460.00 |
| Other receivables from employee’s petty cash | ||
| Other receivables from the collecting and paying on behalf | 3,650.15 | 307.17 |
| Other receivables from other customers | 5,464,392.59 | 5,464,176.55 |
| Other receivables from related parties | 295,440,255.54 | 137,211,313.52 |
| Other receivables in consolidated scope | 1,905,895,183.07 | 1,818,582,752.27 |
| Total | 2,206,968,941.35 | 1,961,424,009.51 |
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 2021 | 95,601.19 | 660,150,746.68 | 140,763,466.25 | 801,009,814.12 |
| Balance as at 1 January 2021 in current period | —— | —— | —— | —— |
| Balance as at 30 June 2021 | 95,601.19 | 660,150,746.68 | 140,763,466.25 | 801,009,814.12 |
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 2021 |
| Within 1 year (include 1 year) | 414,027,582.92 |
| 1 to 2 years | 232,686,504.35 |
| 2 to 3 years | 108,993,517.82 |
| 3 to 4 years | 1,363,323,710.95 |
| 4 to 5 years | 1,363,323,710.95 |
| Total | 2,119,031,316.04 |
3）Additions, recoveries or reversals of provision for the current period
Presented in RMB
| Types | As at 30 June 2020 | Amount changes in current period | As at 30 June 2021 | |||
| Additions | Recoveries or reversals | Written-off | Others | |||
| Other receivables bad debt provision | 801,009,814.12 | 801,009,814.12 | ||||
| Total | 801,009,814.12 | 801,009,814.12 | ||||
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 procedures to be performed | Whether the payment is 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 |
| Shantou Huafeng Estate Development Co., Ltd | Receivable from Subsidiary | 798,024,166.21 | Within 1 year. 1-3 years. More than 3 years | 36.16% | |
| Fresh Peak Enterprise Co., Ltd | Receivable from Subsidiary | 532,770,123.87 | Within 1 year. More than 5 years | 24.14% | 508,377,320.74 |
| Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd. | Receivable from Subsidiary | 345,193,443.65 | |||
| Shenzhen Shenfang Group Longgang Development Co., Ltd. | Receivable from Subsidiary | 126,504,253.19 | Within 1 year. | 5.73% | |
| American Great Wall Co., Ltd | Receivable from Subsidiary | 103,403,196.15 | More than 5 years | 4.69% | 103,403,196.15 |
| Total | -- | 1,905,895,183.07 | -- | 86.36% | 611,780,516.89 |
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 involve them
Note：
3、Long-term equity investments
Presented in RMB
| Item | As at 30 June 2021 | As at 30 June 2020 | ||||
| Book balance | Impairment reserve | Book value | Book balance | Impairment reserve | Book value | |
| Investment in subsidiaries | 753,045,949.42 | 152,839,271.15 | 600,206,678.27 | 303,045,949.42 | 152,839,271.15 | 150,206,678.27 |
| Investment in associates and joint ventures | 12,355,335.26 | 11,977,845.58 | 377,489.68 | 12,355,335.26 | 11,977,845.58 | 377,489.68 |
| Total | 765,401,284.68 | 164,817,116.73 | 600,584,167.95 | 315,401,284.68 | 164,817,116.73 | 150,584,167.95 |
（1）Investment in subsidiaries
Presented in RMB
| Name of investee | As at 30 June 2020(book value) | Increase/ Decrease (+ / -) in current period | As at 30 June 2021(book value) | provision for impairment as at 30 June 2021 | |||
| Additional investment | Decrease of investment | Provision for impairment | Other | ||||
| Shenzhen City Property Management Ltd. | 12,821,791.52 | 12,821,791.52 | |||||
| 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 Special Economic Zone Real Estate (Group) Guangzhou Property and Estate Co., Ltd. | 19,000,000.00 | ||||||
| Shenzhen Zhen Tung Engineering Ltd | 11,332,321.45 | 11,332,321.45 | |||||
| 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 | |||||
| QiLu Co., Ltd | 212,280.00 | 212,280.00 | |||||
| Beijing Shenfang Property Management Co., Ltd. | 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 | 64,183,888.90 | ||||||
| Shantou City Huafeng Real Estate Devepment Co., Ltd | 16,467,021.02 | 16,467,021.02 | |||||
| Paklid Limited | 201,100.00 | ||||||
| Bekaton Property Limited | 906,630.00 | ||||||
| Shenzhen Shenfang Department Store Co. Ltd. | 9,500,000.00 | ||||||
| Shantou Fresh Peak Building | 58,547,652.25 | ||||||
| Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd. | 450,000,000.00 | ||||||
| Total | 150,206,678.27 | 600,206,678.27 | 152,839,271.15 |
（2）Investment in associates and joint ventures
Presented in RMB
| Investees | Opening balance (book value) | Increase/ Decrease (+ / -) in the Jan to Jun 2021 | Ending balance (book value) | Ending balance of the provisio n for impairm ent | |||||||
| Addition al investme nt | Decrease of investme nt | Income from equity investme nt recogniz ed under equity method | Other compreh ensive income adjustme nt | Other equity movement | Announc ed for distributi ng cash dividend or profit | Provisio n for impairm ent | Others | ||||
| I. Joint Venture | |||||||||||
| Fengkai Xinghua Hotel | 0.00 | 0.00 | 9,455,465.38 | ||||||||
| Subtotal | 9,455,465.38 | ||||||||||
| II. Associates | |||||||||||
| Shenzhe n Ronghua Jidian Co., Ltd | 377,489.68 | 377,489.68 | 1,076,954.64 | ||||||||
| Shenzhe n Runhua Automo bile Trading Co., Ltd | 0.00 | 0.00 | 1,445,425.56 | ||||||||
| Subtotal | 377,489.68 | 377,489.68 | 2,522,380.20 | ||||||||
| Total | 377,489.68 | 377,489.68 | 11,977,845.58 | ||||||||
（3）Other note
4. Operation Income and Costs
Presented in RMB
| Items | Jan to Jun 2021 | Jan to Jun 2020 | ||
| Income | Costs | Income | Costs | |
| Principal business | 455,734,779.10 | 115,125,525.93 | 231,360,942.20 | 64,778,297.24 |
| Other businesses | 6,035.31 | 95.24 | ||
| Total | 455,740,814.41 | 115,125,525.93 | 231,361,037.44 | 64,778,297.24 |
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 developmentis completed and pass the acceptance; (3) For Lump-sum payment, revenue is recognized by the groupwhen the consideration is fully received. For instalment payment, revenue is recognized when the firstinstallment has been received and the bank mortgage approval procedures have been completed. (4)completed the procedures for entering the partnership in accordance with the requirements stipulatedin 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 performanceobligations that have been signed but not yet performed or not yet completed is RMB 388,264,809.52yuan, Among them, RMB 330,000,000.00 yuan is expected to be recognized as revenue in 2021, RMB58,264,809.52 is expected to be recognized as revenue in the year 2022, and RMB 0 yuan is expected tobe recognized as revenue in the year 2023.Other note：
5. Investment income
Presented in RMB
| Item | Jan to Jun 2021 | Jan to Jun 2020 |
| Investment returns on structured deposit | 15,217,058.60 | |
| Total | 15,217,058.60 |
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 |
| Non-operating income/(expenses) except the above | 1,345,511.41 | |
| Less: Amount affected by the income tax | 336,377.85 | |
| Total | 1,009,133.56 | -- |
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No. 1on Information Disclosure for Companies Offering their Securities to the Public – Non-recurringGains and Losses and its non-recurring gain/loss items as illustrated in the ExplanatoryAnnouncement No. 1 on Information Disclosure for Companies Offering their Securities to the Public– Non-recurring Gains and Losses which have been defined as recurring gains and losses, it isnecessary to explain the reason.
□ 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 | 3.47% | 0.1309 | 0.1309 |
| Net profit attributable to common shareholders of a company after deducting non-recurring gains and losses | 3.44% | 0.1299 | 0.1299 |
3. Differences in accounting data under domestic and foreign accounting standards
（1）The difference between the net profit and net asset in the financial report disclosed in accordance withthe International Accounting Standards and the Accounting Standards for Chinese Enterprises
Presented in RMB
| Item | Net profit | Net worth | ||
| Current amount | Amount of previous period | Ending balance | Opening balance | |
| According to the accounting standards for Chinese enterprises | 132,447,122.14 | 97,274,985.72 | 3,843,098,587.64 | 3,797,512,488.22 |
| Items and Amount Adjusted according to International Accounting Standards: | ||||
| According to international accounting standards | 132,447,122.14 | 97,274,985.72 | 3,843,098,587.64 | 3,797,512,488.22 |
（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 Mainland China.In case the discrepancy in data which have been audited by an overseas auditing agent has been adjusted,please specify the name of the overseas auditing agent
4. Other