深物业B:2020年年度报告(英文版)

ShenZhen Properties & Resources Development (Group) Ltd.               Annual Report 2020




       SHENZHEN PROPERTIES & RESOURCES
           DEVELOPMENT (GROUP) LTD.


                             ANNUAL REPORT 2020
                                          (Announcement No. 2021-07)




                                                 March 2021




                                                                                       1
ShenZhen Properties & Resources Development (Group) Ltd.                       Annual Report 2020




          Part I Important Notes, Table of Contents and Definitions

The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of ShenZhen Properties & Resources Development
(Group) Ltd. (hereinafter referred to as the “Company”) hereby guarantee the factuality,
accuracy and completeness of the contents of this Report and its summary, and shall be
jointly and severally liable for any misrepresentations, misleading statements or material
omissions therein.
Liu Shengxiang, the Company’s legal representative, Cai Lili, the Company’s head of
financial affairs, and Liu Qiang, head of the Company’s financial department (equivalent to
financial manager) hereby guarantee that the Financial Statements carried in this Report are
factual, accurate and complete.
All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.
The Company is subject to the Guideline No. 3 of the Shenzhen Stock Exchange on
Information Disclosure by Industry—for Listed Companies Engaging in Real Estate.
The Company has described in detail in this Report the possible risks facing it, along with
countermeasures. Please refer to the section headed “Prospects” of “Part IV Operating
Performance Discussion and Analysis” of this Report.
The Board has approved a final dividend plan as follows: based on the share capital of
595,979,092 shares, a cash dividend of RMB4.1 (tax inclusive) per 10 shares is to be
distributed to the shareholders, with no bonus issue from either profit or capital reserves.
This Report and its summary have been prepared in both Chinese and English. Should there
be any discrepancies or misunderstandings between the two versions, the Chinese versions
shall prevail.




                                                                                               2
ShenZhen Properties & Resources Development (Group) Ltd.                                                               Annual Report 2020




                                                  Table of Contents




Part I Important Notes, Table of Contents and Definitions........................................................... 2

Part II Corporate Information and Key Financial Information................................................... 5

Part III Business Summary............................................................................................................. 10

Part IV Operating Performance Discussion and Analysis............................................................16

Part V Significant Events.................................................................................................................47

Part VI Share Changes and Shareholder Information................................................................. 65

Part VII Preferred Shares................................................................................................................75

Part VIII Convertible Corporate Bonds........................................................................................ 76

Part IX Directors, Supervisors, Senior Management and Staff...................................................77

Part X Corporate Governance........................................................................................................ 87

Part XI Corporate Bonds.................................................................................................................95

Part XII Financial Statements.........................................................................................................96

Part XIII Documents Available for Reference............................................................................. 252




                                                                                                                                          3
ShenZhen Properties & Resources Development (Group) Ltd.                                                     Annual Report 2020




                                                      Definitions


                          Term                                                         Definition

                                                       ShenZhen Properties & Resources Development (Group) Ltd. and its
The “Company”, the “Group”, “SZPRD” or “we”
                                                       consolidated subsidiaries, except where the context otherwise requires

SIHC                                                   Shenzhen Investment Holdings Co., Ltd.

ITC Technology Park                                    Shenzhen ITC Technology Park Service Co., Ltd.

Huangcheng Real Estate                                 Shenzhen Huangcheng Real Estate Co., Ltd.

Dongguan Company                                       Dongguan ITC Changsheng Real Estate Development Co., Ltd.

Xuzhou Company                                         SZPRD Xuzhou Dapeng Real Estate Development Co., Ltd.

Yangzhou Company                                       SZPRD Yangzhou Real Estate Development Co., Ltd.

Rongyao Real Estate                                    Shenzhen Rongyao Real Estate Development Co., Ltd.

ITC Property Management                                Shenzhen International Trade Center Property Management Co., Ltd.

Huangcheng Property Management                         Shenzhen Huangcheng Property Management Co., Ltd.

Shandong Shenguomao Real Estate Management             Shandong Shenguomao Real Estate Management Co., Ltd.

Chongqing Shenguomao Real Estate Management            Chongqing Shenguomao Real Estate Management Co., Ltd.

Shouxihu Jingyue                                       Yangzhou Shouxihu Jingyue Property Development Co., Ltd.

                                                       Shenzhen Shenshan Special Cooperation Zone Guomao Property
Shenshan Guomao Property Development
                                                       Development Co., Ltd.

Guomao Tongle Property Management                      Shenzhen Guomao Tongle Property Management Co., Ltd.

Commercial Operation Company                           Shenzhen SZPRD Commercial Operation Co., Ltd.

Guomao Catering                                        Shenzhen Guomao Catering Co., Ltd.

Supervision Company                                    Shenzhen Property Engineering and Construction Supervision Co., Ltd.

                                                       Expressed in the Chinese currency of Renminbi, expressed in tens of
RMB, RMB’0,000, RMB’00,000,000
                                                       thousands of Renminbi, expressed in hundreds of millions of Renminbi

COVID-19                                               The novel coronavirus disease that started in 2019




                                                                                                                                4
ShenZhen Properties & Resources Development (Group) Ltd.                                                         Annual Report 2020




          Part II Corporate Information and Key Financial Information

I Corporate Information

Stock name                         PRD, PRD-B                           Stock code                    000011, 200011

Changed stock name (if any)        N/A

Stock     exchange   for   stock
                                   Shenzhen Stock Exchange
listing

Company name in Chinese            深圳市物业发展(集团)股份有限公司

Abbr.                              深物业集团

Company name in English (if
                                   ShenZhen Properties & Resources Development (Group) Ltd.
any)

Abbr. (if any)                     SZPRD

Legal representative               Liu Shengxiang

                                   39/F and 42/F, International Trade Center, Renmin South Road, Luohu District, Shenzhen,
Registered address
                                   Guangdong Province, P.R.China

Zip code                           518014

                                   16/F, 20/F, 39/F and 42/F, International Trade Center, Renmin South Road, Luohu District,
Office address
                                   Shenzhen, Guangdong Province, P.R.China

Zip code                           518014

Company website                    www.szwuye.com.cn

Email address                      000011touzizhe@szwuye.com.cn


II Contact Information

                                         Board Secretary                                   Securities Representative

 Name                  Zhang Gejian                                          Ding Minghua and Chen Qianying

                       20/F, International Trade Center, Renmin South        39/F, International Trade Center, Renmin South Road,
 Address               Road, Luohu District, Shenzhen, Guangdong             Luohu District, Shenzhen, Guangdong Province,
                       Province, P.R.China                                   P.R.China

 Tel.                  0755-82211020                                         0755-82211020

 Fax                   0755-82210610 82212043                                0755-82210610 82212043

 Email address         000011touzizhe@szwuye.com.cn                          000011touzizhe@szwuye.com.cn




                                                                                                                                    5
ShenZhen Properties & Resources Development (Group) Ltd.                                                                 Annual Report 2020


III Media for Information Disclosure and Place where this Report Is Lodged

Newspapers     designated      by       the     Company       for For A-stock investors: Securities Times
information disclosure                                             For B-stock investors: Ta Kung Pao (HK)

Website designated by CSRC for publication of this
                                                                   www.cninfo.com.cn
Report

                                                                   Board Office, 39/F, International Trade Center, Renmin South Road, Luohu
Place where this Report is lodged
                                                                   District, Shenzhen, Guangdong Province, P.R.China


IV Change to Company Registered Information

Unified social credit code                             No change

Change to      principal     activity     of     the
                                                       No change
Company since going public (if any)

                                                       On 29 September 2004, the State-Owned Assets Supervision and Administration
                                                       Commission of Shenzhen Municipality (“SASAC Shenzhen”) decided to incorporate
                                                       Shenzhen Investment Holdings Co., Ltd. (“SIHC”) to include Shenzhen Investment
                                                       Management Co., Ltd. (“SIM”, the former controlling shareholder of the Company)
                                                       and Shenzhen Construction Investment Holdings Corporation (“SCIHC”). SCIHC and
                                                       SIM hold 323,796,324 and 56,582,573 shares respectively in the Company,
Every change of controlling shareholder
                                                       representing a combined stake of 63.82%.
since incorporation (if any)
                                                       On 19 October 2018, the Company was notified by its actual controlling shareholder
                                                       SIHC that it had received the Confirmation of Securities Transfer Registration from
                                                       China Securities Depository and Clearing Co., Ltd. (Shenzhen branch), marking the
                                                       completion of the equity transfer to SIHC. As such, SIHC has become the controlling
                                                       shareholder of the Company.
                                                       The controlling shareholder remained unchanged during the Reporting Period.


V Other Information

The independent audit firm hired by the Company:

 Name                                          Baker Tilly China Certified Public Accountants LLP

                                               9/F, Zhonghe Plaza, 2002 Shennan Middle Road, Futian District, Shenzhen, Guangdong
 Office address
                                               Province, China

 Accountants writing signatures                Li Ming and Chen Zihan

The independent sponsor hired by the Company to exercise constant supervision over the Company in the Reporting Period:

□ Applicable √ Not applicable

The independent financial advisor hired by the Company to exercise constant supervision over the Company in the Reporting Period:

□ Applicable √ Not applicable


                                                                                                                                          6
ShenZhen Properties & Resources Development (Group) Ltd.                                                           Annual Report 2020


VI Key Financial Information

Indicate by tick mark whether there is any retrospectively restated datum in the table below.

√ Yes □ No

Reasons for the retrospective restatements:

Business combination involving entities under common control

                                                                               2020-over-2019                     2018
                                          2020                 2019
                                                                                  change (%)            Before             Restated

 Operating revenue (RMB)               4,104,374,646.02     3,961,669,942.44        3.60%          2,787,240,632.53 3,376,673,249.90

 Net profit attributable to
 the      listed        company’s       798,572,121.74       817,805,780.12        -2.35%           592,723,852.71      698,050,728.96
 shareholders (RMB)

 Net profit attributable to
 the      listed        company’s
 shareholders               before       788,377,322.39       695,675,201.19       13.33%            591,362,024.37      591,362,024.37
 exceptional        gains     and
 losses (RMB)

 Net       cash          generated
 from/used         in    operating       385,497,782.12       939,789,565.96       -58.98%         1,123,594,927.59 1,231,718,056.18
 activities (RMB)

 Basic earnings per share
                                                 1.3399               1.3722        -2.35%                    0.9945             1.1713
 (RMB/share)

 Diluted earnings per share
                                                 1.3399               1.3722        -2.35%                    0.9945             1.1713
 (RMB/share)

 Weighted average return on
                                                 23.47%               20.46%        3.01%                    18.94%             19.47%
 equity (%)

                                                                                 Change of 31              31 December 2018
                                                                               December 2020
                                     31 December 2020     31 December 2019         over 31
                                                                                                        Before             Restated
                                                                               December 2019
                                                                                     (%)

 Total assets (RMB)                   12,207,356,912.54    10,772,491,740.53       13.32%          5,820,202,137.54 7,023,354,613.55

 Equity attributable to the
 listed                 company’s     3,727,917,440.03     3,147,949,009.38       18.42%          3,337,949,324.64 3,872,406,104.67
 shareholders (RMB)

Indicate by tick mark whether the lower of the net profit attributable to the listed company’s shareholders before and after exceptional

gains and losses was negative for the last three accounting years, and the latest independent auditor’s report indicated that there was

uncertainty about the Company’s ability to continue as a going concern.

                                                                                                                                       7
ShenZhen Properties & Resources Development (Group) Ltd.                                                           Annual Report 2020



□ Yes √ No

Indicate by tick mark whether the lower of the net profit attributable to the listed company’s shareholders before and after exceptional

gains and losses was negative.

□ Yes √ No


VII Accounting Data Differences under China’s Accounting Standards for Business
Enterprises (CAS) and International Financial Reporting Standards (IFRS) and Foreign
Accounting Standards

1. Net Profit and Equity under CAS and IFRS

□ Applicable √ Not applicable

No difference for the Reporting Period.


2. Net Profit and Equity under CAS and Foreign Accounting Standards

□ Applicable √ Not applicable

No difference for the Reporting Period.


VIII Key Financial Information by Quarter

                                                                                                                              Unit: RMB

                                               Q1                        Q2                      Q3                      Q4

 Operating revenue                          861,546,080.08            559,531,687.75         332,619,949.47         2,350,676,928.72

 Net profit attributable to the
                                            152,014,318.10             59,953,416.66         -19,555,182.58          606,159,569.56
 listed company’s shareholders

 Net profit attributable to the
 listed company’s shareholders
                                            152,909,860.77             57,711,762.61         -19,618,268.67          597,373,967.68
 before exceptional gains and
 losses

 Net cash generated from/used in
                                           -609,307,576.52        -1,013,874,562.38        1,170,415,181.72          838,264,739.30
 operating activities

Indicate by tick mark whether any of the quarterly financial data in the table above or their summations differs materially from what

have been disclosed in the Company’s quarterly or interim reports.

□ Yes √ No

IX Exceptional Gains and Losses
√ Applicable □ Not applicable

                                                                                                                              Unit: RMB
                                                                                                                                      8
ShenZhen Properties & Resources Development (Group) Ltd.                                                  Annual Report 2020


                     Item                           2020             2019             2018                    Note

 Gain or loss on disposal of non-current
 assets (inclusive of impairment allowance         -322,603.77        47,015.23       -79,489.58
 write-offs)

 Government subsidies charged to current
 profit or loss (exclusive of government
 subsidies given in the Company’s ordinary                                                        Pandemic-related
                                                  7,100,657.34     2,410,184.82      165,676.08
 course of business at fixed quotas or                                                             government grant
 amounts as per the government’s uniform
 standards)

 Current profit or loss on subsidiaries
 obtained      in   business      combinations
 involving     enterprises   under     common                    118,680,871.93   105,442,907.48
 control from the period-beginning to
 combination dates, net

 Gain or loss on contingencies that do not
                                                                                                   Expected lawsuit-related
 arise in the Company’s ordinary course of      -2,396,947.00
                                                                                                   compensation
 business

 Reversed       portions     of    impairment
 allowances for receivables and contract
                                                    19,900.00
 assets which are tested individually for
 impairment

 Non-operating income and expense other                                                            Demolition compensation
                                                  9,089,508.74     2,048,751.21     1,724,017.41
 than the above                                                                                    received

 Other gains and losses that meet the
                                                    94,284.37         91,337.56
 definition of exceptional gain/loss

 Less: Income tax effects                         3,470,226.55     1,146,936.51      448,375.57

 Non-controlling interests effects (net of
                                                    -80,226.22          645.31       116,031.23
 tax)

                     Total                       10,194,799.35   122,130,578.93   106,688,704.59               --

Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the Explanatory

Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss

Items:

□ Applicable √ Not applicable

No such cases for the Reporting Period.




                                                                                                                              9
ShenZhen Properties & Resources Development (Group) Ltd.                                                         Annual Report 2020




                                        Part III Business Summary

I Principal Activity of the Company in the Reporting Period

(I) Core Business Overview
Established in 1982, the Company was originally known as "Luohu Engineering and Construction Headquarters" and renamed
"Shenzhen Municipal Property Development Corporation" in August 1985. The Company was determined as the second batch of
pilot units for joint-stock reform of state-owned enterprises in 1988. Approved by the municipal government, the Company renamed
to ShenZhen Properties & Resources Development (Group) Ltd. in 1990. The stock of the group company (stock name: SZPRD, A/B;
stock code: 000011, 200011) was officially listed in Shenzhen Stock Exchange in March 1992.
The Company contracted and built Shenzhen International Trade Center Building as Party A and created, planned, and organized the
world-famous "Shenzhen Speed". The building was the place where Chairman Deng Xiaoping gave talks in his inspection to the
south. SZPRD came into being because of the building and has risen amid the Reform and Opening up campaign. Emerging and
growing together with Shenzhen, a city of miracles, the Company has been “a loyal practitioner of the spirit of the ox” and overcome
difficulties in proposing new services in the new era. In the past four decades of trials and hardships, generations of SZPRD
employees have manifested the enterprise spirit of "going ahead and reforming" and centered on the functional positioning as state
assets of "serving national economic and social development, the city, the industry, and the people". The Company has adhered to the
original aspiration and striven ahead to be a pioneer. Therefore, it has made remarkable achievements in development speed and
quality. So far, the Company has grown into a large comprehensive industrial group from the project company that built Shenzhen
International Trade Center Building. Looking ahead, it will size up the situation and seize the momentum in the new era and phase
and forge ahead toward the goal and vision of becoming a "leading smart operator of industry-city space in China".
The year 2020 marks the end of the "13th Five-Year" plan and is a key year for the Company to make major adjustments to win
critical battles in implementing its reforms on all fronts. In the Reporting Period, facing the abrupt COVID-19 and deep regulation
and control in real estate, the Company vigorously explored ways to make breakthroughs in transformation and integrated and
renovated traditional businesses, such as real estate, property management, and house asset operations. Besides, it optimized and
reshaped its business segments so as to form four major business segments, that is, industry-city space development, property
management services, industrial ecosystem operation, and main business ecosystem investment. SZPRD endeavored to further
consolidate and highlight its advantages of industry-city integration and the whole industry chain through expanding the main
business and making breakthroughs.
1. Industrial & urban space development
In terms of the space development segment, the Company is specialized in developing the residence, the hi-end apartment, the office
building, and the industrial park and has developed a batch of brand projects, including Shenzhen International Trade Center Building,
Huanggang Port, Tian'an International Building, Qianhai Gangwan Garden, and Golden Collar Holiday Apartment. Based on its
present real estate development business, the Company will improve its existing portfolio and plan for new businesses. It will engage
a number of subsidiaries in property development and urban renewals, including Huangcheng Real Estate, Rongyao Real Estate, the
Urban Renewal Company, Dongguan Company, Xuzhou Company, and Yangzhou Company, strengthen capital operation via the
listing platform, and make a reasonable layout of the city space development segment. In the Reporting Period, SZPRD made
multiple efforts for this segment. For instance, it steadily advanced the existing project development inside and outside Shenzhen,
accelerated the sales of projects in Xuzhou, Yangzhou, and Dongguan, and sped up the recovery of investment. Moreover, it focused
on the development and construction of industry-city complexes and accelerated to create an integrated and co-existing model for the
development of boutique urban residences and high-end industry space.

                                                                                                                                   10
ShenZhen Properties & Resources Development (Group) Ltd.                                                             Annual Report 2020


2. Property management services
In the Reporting Period, SZPRD deeply integrated its property management segment to establish a business layout featuring the
platform of ITC Property Management and "1+1>2" coordinated development. The total area of property management exceeded 24
million square meters. Over more than 30 years of development, ITC Property Management has developed into a domestic top
branded property service provider of industrial parks. It has won the titles of "Top 100 National Property Management Enterprises"
and "Excellent Enterprise of Property Management of Industrial Park in China" for several years successively, and has subsidiaries,
including Shenzhen Guomaomei Life Service Co., Ltd., Shandong Shenguomao Real Estate Management, and Chongqing
Shenguomao Real Estate Management, and three joint ventures, namely, Shenshan Guomao Property Management, Guomao Tongle
Property Management, and Shouxihu Jingyue. It has built striking brand advantages and established property service projects all over
the country. Next, the Company will take advantage of the brand, ITC Property Management, strive to integrate property
management resources inside and outside the system, quickly expand channel space, upgrade property management, and significantly
enhance channel service quality. In addition, it will combine industry chain and new requirements of community development and
earnestly utilize new technologies, such as the Internet of Things (IoT), big data, and artificial intelligence (AI) to develop a smart
service platform where production and life services can be scheduled in a unified manner.
3. Industrial ecosystem operation
With respect to the industrial ecosystem operation segment, the Company gave full play to its foundation in the three basic industries,
namely, real estate development, property management, and leasing and the advantage of the whole industry chain and deepened
internal and external strategic cooperation. It is committed to creating a closed loop of the whole industrial ecosystem, covering
project development services, park operation services, and supporting rental operations, and keeping improving the space service and
rental ecosystem in the industrial park. The Company is expediting the stock taking and assessment of its properties in stock and
strengthening the management over them. In the future, it will gradually expand the scope of leasing and raise the development
capability of property rental. Moreover, the Company will gradually shift the focus of industrial ecosystem operation to sci-tech
parks, provide supporting services covering the whole value chain, such as the import of industrial ecosystem, project development
services, and park operation services, and serve the role of "space service provider" centering on sci-tech parks.
4. Other business
In the Reporting Period, the Company's businesses also included catering service and project supervision service. The catering
service is operated by Shenzhen Guomao Catering Co., Ltd. Guomao Catering Co., Ltd., established in 1986, became famous at
home and abroad, as it was the place where President Deng Xiaoping gave talks during his inspection to the south in 1992. Since its
establishment, it has received more than 600 domestic and overseas state heads, famous people, and numerous domestic and overseas
guests, with its reputation spreading all over the world. The revolving restaurant had its integrated renovation completed and was
reopened in 2020. The project supervision service is handled by the subordinated supervision company of the Group. The company
has the Grade A supervision qualification of building works of the Ministry of Housing and Urban-Rural Development (MOHURD).
It was originally known as Shenzhen Property Engineering Management Department, and takes part in the construction and
management work of Shenzhen International Trade Center Building. It is a witness of the whole process of "Shenzhen speed", and
mainly serves for the development project of the Group.


(II) Industry development stage and cyclic characteristics of the Company, and industry position of the Company during the

Reporting Period

1. Real estate industry
During the Reporting Period, China maintained the basic tone of real estate policy regulation and control unchanged, including
"Houses are for living in, not for speculating on." and "three stabilities" and further reinforced its financial regulation. In order to
fight against the COVID-19 pandemic, the primary objectives for the first half of the year were "six stabilities" and "six guarantees".
Local governments adopted more flexible policies commensurate with their local situations. Multiple regions released an
                                                                                                                                     11
ShenZhen Properties & Resources Development (Group) Ltd.                                                            Annual Report 2020


underpinning policy for the real estate market. Thus, real estate sales remained high in the country. In the second half of the year,
China constantly tightened its real estate financing policies, issued new regulations for the investment of insurance funds and trusts in
real estate, and strictly investigated the rule-violating transfer of funds from the bank to the real estate industry. Under such a policy
background, China's real estate industry mainly presents the following characters:
(1) Real estate market remains resilient and has broad prospects
According to the National Bureau of Statistics, in 2020, the sales area of national commercial housing was 1,761 million square
meters, with an increase of 2.6% year-on-year (YoY), while the sales amount was RMB17.36 trillion, up by 8.7% YoY and higher
than the growth rate of 6.5% in 2019. The sales amount of residential housing reached RMB15.46 trillion, rising by 10.8% YoY,
representing nearly 90% of the total sales amount of commercial housing. However, the sales amount of office buildings and houses
for business use dropped by 5.3% and 11.2%, respectively, from the same period last year. Prices of commercial housing generally
climbed and demonstrated apparent differences by region. The dramatic increase in the prices in core cities, such as those in the
Yangtze River Delta and the Pearl River Delta, drove the growth in surrounding areas. The real estate industry remained resilient
amid the pandemic.
(2) Financing regulation turned stricter than expectations. The capital chain of real estate enterprises became tight
The central monetary policies were loose so as to effectively promote the resumption of work and production at the beginning of the
year. Governments in multiple regions loosened the regulation and credit policies for real estate enterprises. Monetary policies have
resume tight since May, as the adverse impact of the pandemic turned weaker and weaker and the sales of commercial housing and
land remained hot. The principle that "Houses are for living in, not for speculating on." has been stressed again. The monitoring of
the flow of funds from the bank to real estate enterprises has been intensified. The "Three Red Lines" policy was introduced and
piloted in August to further regulate the financing of real estate enterprises. Financing in the real estate industry slowed down in 2020
amid stricter regulation over financing and growth in the scale of debts due. The financing scale fell. The overall financing cost
dropped slightly. In terms of structure, self-raised funds and mortgage loans accounted for a higher proportion. Bond issuance
continued to grow in China, while the scale of bonds overseas plunged drastically. Innovative products like ABS became increasingly
important. The peak of the repayment of overseas bonds brought some cash flow risks to real estate enterprises. The industry might
usher in a new cycle of supply-side reform.
(3) Land sales remained hot. Both sales volumes and prices increased
Real estate enterprises showed an increasing willingness to purchase land, attributable to the loose monetary policies and
performance of the commercial housing market better than expectations. Besides, local governments accelerated to promote land
sales. Both the supply and demand sides jointly pushed forward the increase in sales volumes and prices. In 2020, turnover of land
sales through tendering, auctioning and listing was approximately RMB8.05 trillion, rising by 18.8% YoY. 4,925 million square
meters of planned building area were transferred with a YoY increase of 14.9%. The average sales price of land was
RMB1,635/square meter throughout the year, which climbed by 3.5% YoY. By regions, tier-1 cities represented by those in the
Yangtze River Delta, the Pearl River Delta, and the Beijing-Tianjin-Hebei Region maintained high increases in both the sales area
and amount of land, followed by tier-3 cities. Because of a high inventory, the growth rates in tier-2 cities were weak and at the
downside of the cycle.
2. Industry of property management
With the acceleration of urbanization, the upgrading of citizen's consumption level, and the constant increase of stock property area,
the Chinese property management industry enters a cycle of rapid progress, as driven by favorable policies. At present, the property
management industry is scattered in China. In other words, its market concentration is not high. Large property management
enterprises will occupy a higher market share, along with the progress of M&As of such enterprises. China's property management
industry mainly presents the following characteristics:
(1) Market prospects are broad. Revenue grows rapidly
According to the Evaluation Report of Comprehensive Strengths of Property Service Enterprises for 2020, in 2019, the total national
management area of the property management industry was 31 billion square meters with a YoY increase of 11%. The top 100

                                                                                                                                      12
ShenZhen Properties & Resources Development (Group) Ltd.                                                           Annual Report 2020


property management enterprises actively implemented diversified expansion strategies. Their number of projects under management
in 2019 averaged 212, up by 10.42% YoY, while the area under management, 42,788,300 square meters with a YoY increase of
15.08%. The market share of the top 100 property management enterprises was approximately 43.6%. The industry concentration
further increased. The gap among enterprises at different levels turned wider. In general, the property service fee grew. In December
2020, the composite index of property service prices in 20 major cities reached 1070.32, up by 0.6% YoY. The property service
industry in China will enter a golden period of rapid development, along with the increase in the existing and new properties and the
progress of new types of communities. The industry scale will hopefully surpass RMB2 trillion.
(2) The craze of listing among property management enterprises continues. Industry competition is becoming stronger
Property management enterprises have endeavored to get listed since 2018, thanks to the high valuation in the market. The year 2020
witnessed the listing of 17 such enterprises, most of which were H-share-listed, indicating an apparent Matthew Effect. Nevertheless,
the stock prices on the first day of over half of the property management enterprises listed in 2020 were lower than their issue prices,
which implied that the valuation of property management enterprises diverged from reality. Property management enterprises
accelerate to perform M&As and integration in order to cope with the increasingly fierce industry competition and expand scale and
business. Quality underlying assets are like "sweet pastries". Leading enterprises have raised the area under management to a new
level of 500 million square meters through M&As.
(3) The industry speeds up to transform and vigorously expand the Blue Ocean Market
The ten ministries and departments of China published the Notice on Strengthening and Improving Residential Property Management
in January 2021. The document encourages property service enterprises to proactively employ technologies, such as the IoT, cloud
computing, big data, blockchain, and AI, to build a smart property management service platform and explore the "property service +
life service" model. As property services are expanding to cover elderly and child care, housekeeping, culture, health, house agency,
and express delivery and receipt, multi-level and diversified residential and life demands of owners will be better satisfied.
Furthermore, property management enterprises will hopefully expand the Blue Ocean Market and improve the profitability per unit
area. The legal status of the owners' committee of the community is specified upon the implementation of the Civil Code. The
committee is becoming stronger. Disputes over the rights to operations and earnings of public space are surging, leading to pressure
on the sustainable development of the property management industry.
3. Industry position of the Company
SZPRD arises together with Shenzhen opening up and devotes to Shenzhen real estate and property management and other fields for
more than 30 years. Its comprehensive capacity and brand influence is getting stronger. Its industry position improves gradually. It
has won many honors and awards in the past years. During the Reporting Period, at the 10th Grand Ceremony of Shenzhen Real
Estate held by the Shenzhen Real Estate Association, the Group won the honor of "Brand Value Enterprise of Shenzhen Real Estate
Development Industry".
ITC Property Management was among the first batch of national qualified Level I enterprises of property management. During the
Reporting Period, thanks to its continuous improvement in internal control, steady progress in property management quality, and
constant R&D of services and products matching customer requirements, ITC Property Management was granted the titles of "Top
100 Enterprises of China's Property Management in 2020" and "Property Management Enterprises of China's Industrial Park in
2020". Additionally, it was ranked 27th among China's top 100 property services for comprehensive competency, up by six places
over 2019. It has been included in the Top 100 Enterprises of China's Property Service for five consecutive years since 2016. Besides,
it was ranked 11th of the "Top 100 of Comprehensive Capacity of Shenzhen Property Service Enterprises in 2019".


II Significant Changes in Major Assets

1. Significant Changes in Major Assets


               Major assets                                           Main reason for significant changes

                                                                                                                                    13
ShenZhen Properties & Resources Development (Group) Ltd.                                                        Annual Report 2020




                                           Up 1.41% from the beginning amount, primarily driven by return on investment in
 Equity assets
                                           joint ventures recognized at the equity method

                                           Up 24.24% from the beginning amount, primarily driven by decoration spending for
 Fixed assets
                                           the Company’s own housing properties

 Intangible assets                         Down 31.17% from the beginning amount, primarily driven by amortization

 Construction in progress                  No such assets

                                           Up 27.54% from the beginning amount, primarily driven by settlement of sales and an
 Monetary assets
                                           increase in bank borrowings

                                           Up 68.64% from the beginning amount, primarily driven by additional decoration
 Long-term prepaid expenses
                                           spending for housing properties in the lease business

                                           Up 44.45% from the beginning amount, primarily driven by an increase in tax-related
 Deferred income tax assets
                                           deductible loss


2. Major Assets Overseas

□ Applicable √ Not applicable


III Core Competitiveness Analysis

Long-lasting enterprise spirit    The enterprise spirit of "going ahead and reforming" has run through the development of the
Company, from the pioneering implementation of the joint-stock system reform at the end of the 1980s to the acquisition of the ITC
Sci-tech Park, epitomizing the "Shenzhen Speed" of marketized incorporation of state-owned enterprises in Shenzhen and the first
adoption of the following investment system of urban renewal projects in municipal state-owned asset system. The key of the
Company to maintain its vitality over the past three decades lies in being brave and courageous to reform and good at reform. The
Company will fully study and judge the macro-economic environment and the industry development progress and deeply analyze its
advantages and disadvantages, while stepping on the new journey of the "14th Five-year Plan". It will make a forward-looking layout,
transform in an appropriate time, and seek progress based on reform.
Rise of all major businesses based on accumulated strength        The Company has devoted enormous resources in real estate and
property management industries. It has kept a foothold in Shenzhen and earnestly expanded the external market. Up to now, it has
created a market layout where key businesses are highlighted and promoted hierarchically. In regard to the real estate business, the
Company regards Huangcheng Real Estate as its primary platform and Rongyao Real Estate, Xuzhou Company, Yangzhou Company,
and Dongguan Company as property development entities. At present, its main projects are distributed in Shenzhen, Xuzhou,
Yangzhou, and Dongguan. In terms of the property management business, ITC Property Management embraces subsidiaries, such as
Shenzhen Guomaomei Life Service Co., Ltd., Chongqing Shenguomao Real Estate Management, and Yangzhou Jingyue Property
Management Co., Ltd., and has grown into a first-class property service provider for industrial parks in China. Currently, its area
under management exceeds 24 million square meters, including nearly 8 million square meters in high-end industrial parks,
demonstrating its ever-growing business expansion capabilities.
Standardized and effective corporate governance          Guided by the philosophy of running by law, the Company constantly
deepened system construction and improved its governance structure. It revised nearly 30 regulations and rules in the year, including
the Articles of Association, the Rules of Procedure of Shareholders' Meeting, the Rules of Procedure of the Board of Directors, the
Rules of Procedure of Board of Supervisors, implementation rules of special committees under the Board of Directors, as well as

                                                                                                                                  14
ShenZhen Properties & Resources Development (Group) Ltd.                                                      Annual Report 2020


documents on bidding and tendering, investment and merger, internal control, and authorities. The internal governance structure is
clear and sound. In the meantime, the Group deeply implemented the remuneration reform, established market-oriented and
multi-level incentive and performance assessment mechanisms, and stimulated the enthusiasm of all employees for work and
entrepreneurship.
Widely recognized brand value SZPRD arises together with Shenzhen opening up and has been highly recognized in the market
by virtue of its "ITC" brand that carries the spirit of opening up. At the 10th Grand Ceremony of Shenzhen Real Estate held by the
Shenzhen Real Estate Association, the Group won the honor of "Brand Value Enterprise of Shenzhen Real Estate Development
Industry". Moreover, it has won multiple honors for years consecutively, such as the "Best 500 of China Real Estate Developers" and
the "Guangdong Top 500 Enterprises", with its social influence and brand reputation improved constantly.




                                                                                                                                15
ShenZhen Properties & Resources Development (Group) Ltd.                                                         Annual Report 2020




             Part IV Operating Performance Discussion and Analysis

I Overview

The Company is subject to the Guideline No. 3 of the Shenzhen Stock Exchange on Information Disclosure by Industry—for Listed
Companies Engaging in Real Estate.

(I) Industry review for the Reporting Period

1. Macro economic situation
The COVID-19 pandemic exerted a severe impact across the world in 2020 and became a systematic system with extremely great
uncertainties co-existing with trade frictions and geopolitics. It constituted a tremendous shock to the world economy. Currently,
COVID-19 has been effectively controlled in China, while the situation overseas is still not optimistic. In the financial field, the
economic downturn has resulted in soaring risk aversion and frequent fluctuations in the global stock market. Rising unemployment
rates and decreasing income are inhibiting consumption. Central banks in all countries have taken loose monetary policies to promote
economic recovery. Global debts have hit a new high. Generally, pandemic rebound hinders economic recovery in the United States
and Europe. Global inflation remains sluggish. It is predicted that the economy in 2020 would shrink by 3.5%. That said, the severest
moment has passed. The world economy will hopefully enter a recovery cycle, as the pandemic across the world becomes a new
normal, the world political situation turns stable, and trade protection measures are expected to decrease. The recovery progress is
mainly determined by the pandemic trend all over the world.
In the context of the global economic depression, China recorded a GDP of RMB101.6 trillion in 2020 with a YoY increase of 2.3%.
It was the first time for China to surpassed RMB10 billion. Besides, China was the only major economy in the world that achieved
positive growth in the year. Most regions across the country stopped work and production, as influenced by the sudden outbreak of
COVID-19 at the beginning of the year. Consequently, the first quarter (Q1) witnessed a YoY decrease of 6.8% in GDP. However, as
the pandemic was gradually controlled and the resumption of work and production was orderly promoted, China's economy steadily
recovered. The YoY growth rates of GDP in Q2, Q3, and Q4 were 3.2%, 4.9%, and 6.5%, respectively. China took the lead in
controlling the pandemic, while repeated outbreaks occurred overseas. Hence, China had an outstanding performance in exports. The
export trade totaled RMB32.16 trillion in the year, growing by 1.9% YoY. Specifically, exports rose by 4%, while imports declined
by 0.7%. Total retail sales of consumer goods amounted to RMB3.92 billion, down by 3.9% YoY. Prices slowly recovered after a
slight decrease at the beginning of the year. The annual CPI climbed by 2.5%. Generally, investment in fixed assets first declined and
then rose. The growth rates of investment in manufacturing and infrastructure construction gradually picked up. Investment in the
real estate industry continued to be resilient. From January to November, investment in real estate development amounted to
RMB12,949.2 billion with a YoY increase of 6.8%. The industry prospects kept recovering.
The year 2021 marks the start of the "14th Five-year Plan". The pandemic still exists. China is recovering its economy. Its fiscal and
monetary policies will resume neutral. Endogenous consumption and manufacturing investment will become the main engine of
economic growth. It is expected that China's economy will gradually return to normal in 2021 and make significant contributions to
the global economic recovery. In general, the momentum of the steady economic progress in China will remain unchanged.
2. Policy environment of the industry
In 2020, the central government of China observed the basic tone that "Houses are for living in, not for speculating on." in terms of
real estate regulation and control. It adopted loose monetary policies, when the pandemic was the most severe in the first half of the
year. As a result, the fund environment of the real estate industry was improved. Local governments implemented more flexible
policies in line with their actual situations. For the demand side, priority was given to the talent attraction policy and loosened
requirements for household registration. For the supply side, relevant market support policies were released. For instance, Shanghai,
                                                                                                                                  16
ShenZhen Properties & Resources Development (Group) Ltd.                                                           Annual Report 2020


Hangzhou, and Nanjing relaxed the time limit for real estate enterprises to pay the land transfer fee. Fuzhou, Huzhou, and Tianjin
allowed the delay of the start and completion of projects. Xuzhou and Dongguan adjusted the pre-sale conditions for commercial
housing. Nanchang, Jinan, Wuxi, and Xi'an reduced the regulatory requirements for funds. Xiamen, Shenzhen, and Guangzhou raised
credit lines.
In the second half of the year, as the pandemic turned weaker and the real estate market enjoyed high popularity against the trend,
regulation and control policies turned tighter. Financial regulation was constantly reinforced. In August, the MOHURD and the
People's Bank of China (PBoC) held a symposium attended by key real estate enterprises in order to stress again that "Houses are for
living in, not for speculating on.", stabilize land prices, house prices, and expectations, and maintain the continuity and stability of
regulation and control policies for the real estate industry. Fund monitoring and financing management rules were formulated for key
real estate enterprises at the symposium. Through the "Three Red Lines", new requirements were raised to change the traditional
financing model of real estate enterprises, which would be beneficial to guide the benign development of the real estate industry.
Eight key tasks of the central government of China were proposed for 2021 at the Central Economic Work Conference held in
December 2020. Prominent problems about housing in major cities should be properly addressed. Housing problems are related to
the well-being of the people. Multiple policies should be adopted in line with the actual situation to push forward the steady and
wholesome progress of the real estate market. Great importance should be attached to the construction of security rental houses. The
long-term rental market should be strictly standardized. Moreover, more land should be provided for the construction of rental houses.
Real estate enterprises should be encouraged to utilize collective land for construction and self-owned idle land to construct rental
houses. Meanwhile, the tax burden of rental houses should be reduced. The rental market should be remedied. The rent level should
be reasonably regulated and controlled.
The PBoC and the China Banking and Insurance Regulatory Commission (CBIRC) jointly published a notice on December 31, 2020,
to decide to formulate a policy for managing the concentration of real estate loans provided by financial institutions in the banking
industry. The policy is designated to facilitate market entities to form stable policy expectations and promote the sustainable
development of the real estate market.
3. Regional market layout
In 2020, the real estate market in Shenzhen led the national market in both supply and demand despite the pandemic and policy
regulation and control. In Q1, due to the impact of the pandemic, the real estate market was basically stagnant. In Q2, as the
pandemic was gradually controlled and policies were relaxed, a large amount of capital flew in to boost the real estate market. House
prices surged dramatically, resulting in pain points, such as hot housing speculation, the rule-violating flow of funds, and
supply-demand imbalance. In view of this, the Shenzhen Municipal Bureau of Housing and Urban-Rural Development issued eight
measures on July 15 to regulate and control the real estate market from eight aspects, including identification of the house purchase
qualification and time of household registration, adjustment of the policy for the restricted purchase of commercial houses, and
promotion of signing of the mortgage loan contract online. The market quickly recovered upon the implementation of new policies.
Second-hand houses were sold at a low price. The government relaxed the pre-sales policy, followed by an increase in the supply of
houses. Q4 marked the 40th anniversary of the establishment of the Shenzhen Special Economic Zone. The construction of the
Guangdong-Hong Kong-Macao Greater Bay Area and the Demonstration Area of Socialism with Chinese Characteristics was
promoted constantly. There were high expectations for the long-term prospects of the real estate market. The enthusiasm of buyers
ran high again.
Generally, in 2020, Shenzhen supplied 54,000 sets of new houses. 4,489,000 square meters/45,384 sets of new residential houses
were sold, up by 20.5% and 19.8% YoY, respectively. The transaction scale had reached a record high since 2016. Throughout the
year, the sales rate on the opening day was higher than 60%, setting a new record in the past three years. The average annual
transaction price of new houses was RMB53,000/square meter, which was stable with a slight decline. 95,273 sets of second-hand
houses were sold in the year, rising by 23.5% YoY. The Longgang Center, Buji, and Xixiang took the first three places in transaction
volumes. The average transaction price in the city was RMB66,000/square meter, higher than that in the same period last year.
Throughout the year, 24,910 sets of commercial apartments were approved and sold with a total area of 1.47 million square meters.

                                                                                                                                     17
ShenZhen Properties & Resources Development (Group) Ltd.                                                          Annual Report 2020


The two figures increased by 23.6% and 23.7% over the same period last year. Apartments demonstrated a stronger quasi-residential
property. In 2020, Shenzhen listed and transferred 96 plots of land, including 34 plots of residential land with an accumulative land
transfer fee of RMB80 billion. Looking into 2021, the real estate market in Shenzhen will continue the basic tone that "Houses are
for living in, not for speculating on." and raise house supply. Shenzhen will stabilize land prices, house prices, and expectations,
drive the steady and wholesome progress of the real estate market, and effectively prevent and mitigate risks in the market.

(II) Business Review for the Company in 2020

In 2020, the Company successfully accomplished various objectives. For the year, it recorded operating revenue of approximately
RMB4.1 billion and a gross profit of around RMB1.03 billion. In addition, its total assets reached RMB12.2 billion, hitting a record
high. All these remarkable results represented a perfect ending for the “13th Five-Year Plan” of the Company.
For the 13th Five Year, the Company cumulatively recorded operating revenue, a gross profit and a net profit of RMB16.82 billion,
RMB4.33 billion and RMB3.19 billion respectively, up 132%, 114% and 112% compared to the 12th Five Year; and its total assets
and net assets as at the end of the period went up 179% and 80% respectively from five years ago. These data represented
considerable over-fulfillment of the goals set. During the 13th Five Year, the Company adopted a sustained, consistent and active
dividend policy, taking into account both reasonable return to investors and the sustainability of the Company. The five-year period
saw a total dividend payout amount of RMB924 million (including the 2020 dividend payout plan).
1. A phased victory was achieved in fighting against the pandemic through unity of efforts
In the face of the sudden outbreak of the COVID-19 pandemic, the Group immediately established an anti-pandemic leading group,
accurately implemented all anti-pandemic tasks, and spared no pains to arrange the resumption of work and production. No
suspicious or confirmed cases were identified among over 8,000 employees of the Group. In addition, the Group actively adopted the
policy requirement for rent reduction and exemption and joined hands with small- and medium-sized private enterprises to respond to
challenges. Approximately RMB38 million of rents were reduced and exempted, benefiting nearly 700 tenants. The Group and
individuals donated over RMB2 million, which fully reflected the mission and responsibility as a state-owned enterprise.
2. The Company stuck to the business philosophy of market orientation and achieved remarkable performances in the two
major segments
In the Reporting Period, the Company hosted a real estate work meeting and introduced a whole-cycle development management
system. It specified the goal of "efficiency, benefits and effects" of operations and management of real estate projects and strove to
manage the process in a planned, coordinated, and cooperative manner. Furthermore, it followed the "117" specific implementation
path to holistically and constantly improve the operations and management of real estate projects. The Company planned and
precisely implemented strategies amid the pandemic. It delivered 100% of finely decorated Tower C of Golden Collar Holiday
Apartment in advance and successfully sold Phase II of Xuzhou out. Throughout the year, the Company recorded revenue of
approximately RMB2.9 billion in real estate and a net profit of around RMB661 million. Project resources were expanded through
multiple channels, such as tendering, auctioning, listing, and cooperative development. Substantial progress was made in the
Integrated Industry-city Project of the Ecological Health Valley of Yangzhou Shouxihu, the urban renewal project in the Fuyuan
Industry Park, the Guangming Tangjia Project, and the Baolu Project in the year.
With respect to the property management segment, the Company vigorously blazed a trail based on endogenous expansion and
M&As. In 2020, it accumulatively had 27 new projects with a total area of over 3 million square meters, better than the annual
objective for endogenous growth. Moreover, the Company explored non-conventional investment methods for the first time, such as
overseas investment and private non-controlling investment so as to open a new path to cope with the fierce competition. First, it
successfully expanded the overseas market by establishing a subsidiary in Vietnam. Besides, it entered into an agreement with VCEP
to jointly create a national demonstration zone of the "the Belt and Road" initiative. The new area under property management in the
park was approximately 1.96 million square meters. Second, new investment cooperation models were proposed. The three joint
ventures, namely, Shenzhen Guomao Tongle Property Management Co., Ltd., Shenshan Guomao Property Development, and
Shouxihu Jingyue, have grown gradually by taking advantage of the resources of their partners. Especially, Shouxihu Jingyue won

                                                                                                                                  18
ShenZhen Properties & Resources Development (Group) Ltd.                                                             Annual Report 2020


key projects like Sanwan Scenic Spot of Yangzhou Canal, Songjia City, and Hua Du Hui. Its area under management was up to
around 3.7 million square meters. It is an effective example of the market-oriented expansion of the property management business.
3. The Company adhered to the idea that development is the top priority and addressed many prominent problems
concerning overall operations and development.
First, it actively promoted the demolition of the Bangling Project, held the opening ceremony in October, and started the substantial
construction of Phase II. Second, it assisted foreign trade groups in activating assets. The first batch of assets have been disposed of.
Over RMB1.5 billion was realized. Third, it actively supported the tax examination over the key and large enterprises specified by
the State Taxation Administration, spared no effort to solve the historical problem of land costs in the Huangyuyuan Area, and
basically eliminated the risk of a supplementary payment of increment tax on land value. Fourth, it strongly supported shanty house
renovation projects of the government and completed the signing for the removal of tenants and house delivery of tenants on
Chuanbu Street. It is estimated that the Group will obtain an area of relocated property of approximately 14,000 square meters by
2025. For other aspects, a comprehensive agreement was signed for Yupinluanshan Garden project after nearly one decade. The
Fumin Complex was renovated and put into operation, becoming the first rental house project for special talent of professional
lawyers. Effective measures have been adopted to promote Phase II of Fuchang, upon negotiation with several parties. Basements
were constructed in the Reporting Period.
4. Internal reform was deepened. Vitality and power of quality development of the Group were significantly stimulated
The remuneration reform was earnestly promoted. The long-acting incentive and restraint plan for the first phase has been
implemented. The integration of business segments was coordinated. Incentive and performance assessment mechanisms, such as the
remuneration reform and incremental sharing, were comprehensively conducted in all subordinated companies from top to bottom. In
addition, the Company orderly promoted the optimization of the organizational structure after the acquisition of TK Property and the
integration of property management and rental segments. The Project Management Department and the Industry Operation Office
were newly set up in the Headquarters. Shortcomings in operations were improved. A development platform was created for the four
major businesses. A platform business system with a reasonable structure and independent operations was developed. Furthermore,
policies were revised as appropriate. Over 30 regulations and rules were revised, including the Articles of Association, to practically
improve corporate governance. In terms of other aspects, a new stride was made in integrated financial management. Approximately
RMB1.6 billion new financing was added. Tendering and the determination of bid winners were strengthened. Cost control was
reinforced. Additionally, the Company firmly upheld the concept of safe development and took multiple measures to ensure
production safety.
(III) Land Bank

1. New additions to the land bank

There were no new additions to the land bank in the current period.

2. Cumulative land bank

                                                                                                            Floor area available for
      Name of project/area             Site area(0,000 ㎡)              Floor area(0,000 ㎡)
                                                                                                           development(0,000 ㎡)

 Yupinluanshan Garden
                                   2.19                               7.89                             7.89
 project

 Baolu project                     3.24                               8.16                             8.16

 Land in Danshui, Huiyang
                                   1.77                               6.20                             6.20
 District, Huizhou City

 Land in Hongqi Town,
                                   15.8                               -                                -
 Haikou City

                                                                                                                                       19
ShenZhen Properties & Resources Development (Group) Ltd.                                                                                   Annual Report 2020


               Total                    23                                     22.25                                       22.25

Note: The floor areas of the Yupinluanshan Garden project, the Baolu project and the land in Danshui, Huiyang District, Huizhou
City are floor areas with plot ratio.

(IV) Development status of major projects

                                                                                                                     Floor
                                                                                                                     area
                                                                                                                               Cumulat
                                                                                                                      that
                                                                                                                               ive floor
                                                     Time for                                                       comple                 Estimate Cumulat
                                                                                                       Planned                 area that
                                             The     commen                                                           ted                   d total    ive
                                                                  %        % that has                    floor                     has
City/regi Name of Locatio                 Compa cement                                     Site area                constru                investme investme
                                Usage                           develo     completed                   area with               complete
   on      project        n                  ny’s      of                                 (㎡)                   ction in                  nt        nt
                                                                 ped      construction                 plot ratio                  d
                                          interest construct                                                          the                  (RMB’0, (RMB’0,
                                                                                                       (㎡)                  construct
                                                       ion                                                          Curren                   000)      000)
                                                                                                                                   ion
                                                                                                                       t
                                                                                                                               (㎡)
                                                                                                                    Period
                                                                                                                    (㎡)

           Golden
           Collar’s
Shenzhe                Futian Resid
            Resort                        100% 2014.03 100%                  100%          12,598 133,800              0       183,295 138,311 108,406
    n                  District ential
          apartmen
              ts

                                                                         Concrete roof
                                                                         completed for
                                                                         the basements
                                Affor
                                                                Under     in Section 1
Shenzhe     Fuhui      Futian dable
                                          100% 2018.12 constru               and 2;         4,274       33,430         0           0        90,439    60,072
    n     Huayuan District housin
                                                                 ction      structure
                                  g
                                                                         completed for
                                                                         -2/F of Section
                                                                               3

           Banshan Tongsha                                      Under Pre-acceptance
Xuzhou                          Resid
            Yujing        n               100% 2019.03 constru completed for 31,537                     22,795         0           0        23,581    15,997
  City                          ential
          (Phase II) District                                    ction the main frame

Shenzhe Guanlan Longhu Resid                                    Under       75.88%
    n     Bangling        a     ential,                         constru completed for
                       District comm                             ction     demolition
                                ercial
                                           69%       2020.10                               68,300 433,640              0           0       694,150 330,262
                                apart
                                ments
                                 and
                                indust

                                                                                                                                                              20
  ShenZhen Properties & Resources Development (Group) Ltd.                                                                           Annual Report 2020


                                       rial

 (V) Sales status of major projects

                                                                                                                                                   Pre-sale/
                                                                                                Floor    Pre-sale/sal                               sales
                                                                                                                                      Floor area
                                               The                                Cumulativ     area     es revenue                                revenue
                                                                     Floor area                                         Cumulativ settled in
          Name                                Comp Floor area                         e       pre-sold/s generate in                                settled
City/re                                                              available                                           e settled       the
               of   Location       Usage      any’s   with plot                  pre-sold/s old in the the Current                                 in the
 gion                                                                 for sale                                          floor area     Current
          project                             interes ratio (㎡)                old floor    Current     Period                                  Current
                                                                      (㎡)                                               (㎡)         Period
                                                t                                 area (㎡) Period     (RMB’0,00                                 Period
                                                                                                                                       (㎡)
                                                                                               (㎡)        0)                                    (RMB’0
                                                                                                                                                    ,000)

                    Intersecti
          Golde on of
                                 Residenti
          n         Futian
                                 al, studio
          Collar’ South
Shenz                            apartmen
          s         Road and                  100% 133,800.6 125,231.07 68,323.44 33,414.96               262,382       64,287.07 37,184.94 274,075
hen                              ts and
          Resort Binhe
                                 commerc
          apartm Road in
                                 ial
          ents      Futian
                    District

          Songh                  Residenti
Dongg
          u         Dalang       al,
uan                                           100% 147,139.96         140,911      140,911        0           0          145,443          0           0
          Langy Town             commerc
City
          uan                    ial

                    Intersecti
                    on of
          SZPR Yueliang
          D-Qia wan
          nhai      Boulevar
Shenz                            Residenti
          Gang d and                          100% 64,625.13 63,448.26 63,448.26                  0           0         63,336.29         0           0
hen                              al
          wan       Xinghai
          Garde Boulevar
          n         d in
                    Nanshan
                    District

                    6
          Bansh Huashan
          an        Road,
Xuzho
          Yujing Tongshan Villa               100% 54,589.12 85,652.81 85,652.81                  0           0         85,652.81 2,331.54 1,802.17
u City
          (Phase District,
          I)        Xuzhou
                    City,
                                                                                                                                                       21
  ShenZhen Properties & Resources Development (Group) Ltd.                                                               Annual Report 2020


                   Jiangsu
                   Province

                   6
                   Huashan
                              Residenti
         Bansh Road,
                              al
         an        Tongshan
Xuzho                         (elevator
         Yujing District,                     100% 22,794.76 21,720.72 21,720.72 9992.97       12,256.85           0          0          0
u City                        houses of
         (Phase Xuzhou
                              4-7
         II)       City,
                              floors)
                   Jiangsu
                   Province

                              Residenti
                   Intersecti al units,
         Hupan on of          shops,
Yangz
         Yujing Shouxihu apartmen
hou                                           100% 36,141.28 48,870.98 42,349.26     870.59        332.2     42,215.85     944.67      575.03
         Phase Road and ts,
City
         I         Hangou     parking
                   Road       garages
                              and lots

                              Residenti
                   Intersecti al units,
         Hupan on of          shops,
Yangz
         Yujing Shouxihu apartmen
hou                                           100% 56,935.75 73,121.96 67,523.37 1,317.54      1,678.47      64,177.89     1,060.9   1,042.74
         Phase Road and ts,
City
         II        Hangou     parking
                   Road       garages
                              and lots

 (VI) Rental status of major projects

                                                                The Company’s                         Cumulative
                                        Locatio                                    Rentable area                             Average
          Name of project                             Usage        working                             rented area
                                          n                                          (㎡)                               occupancy rate
                                                                   interest                                (㎡)

                                                   Apartments
             Xi Apartments             Shenzhe         for
                                                                   100.00%             3967                 3967             100.00%
               (Longyuan)                 n         long-term
                                                      rental

                                                   Apartments
                                       Shenzhe         for
      Xi Apartments (Longhua)                                      100.00%             1609                 1609             100.00%
                                          n         long-term
                                                      rental

                                       Shenzhe     Apartments
       Xi Apartments (Xinhu)                                       100.00%             1600                 1600             100.00%
                                          n            for

                                                                                                                                           22
ShenZhen Properties & Resources Development (Group) Ltd.                         Annual Report 2020


                                        long-term
                                          rental

    Food Court in the        Shenzhe
                                       Commercial      100.00%   4049    2645         65.00%
International Trade Center       n

                             Shenzhe   Commercial
     Fumin Complex                                     100.00%   6450    4576         71.00%
                             n         , apartments

Tower A of Wenjindu Port     Shenzhe      Office
                                                       75.00%    5884    5703         97.00%
         Building                n       building

                                       Commercial
                             Shenzhe
 Haiwai Lianyi Building                 units and      75.00%    9788    9788        100.00%
                                 n
                                         offices

                             Shenzhe
     Anhua Building                      Offices       75.00%    1414    1414        100.00%
                                 n

                                       Residential
         Training            Shenzhe   units/offices
                                                       75.00%    4244    4244        100.00%
   Building/Dormitory            n     /commercial
                                          units

                             Shenzhe
     Pengfu Building                     Offices       75.00%    6494    6494        100.00%
                                 n

                             Shenzhe
                                 n
      Jinfu Building                   Commercial      75.00%    1702    1702        100.00%
                             Shenzhe
                                 n

                             Shenzhe
                                 n
      Jinfu Building                   Commercial      100.00%    568     568        100.00%
                             Shenzhe
                                 n

                             Shenzhe   Residential/
     Fuxing Garden                                     75.00%    5877    5877        100.00%
                                 n     commercial

                             Shenzhe
     Fuxing Garden                     Commercial      100.00%   1417    1417        100.00%
                                 n

   Plant area in Tangxia     Donggu
                                          Plant        75.00%    22034   22034       100.00%
  Town, Dongguan City        an City

                             Shenzhe   Commercial
Pacific Business Building                              75.00%    3199    3199        100.00%
                                 n     units/offices

                             Shenzhe   Commercial
Pacific Business Building                              15.00%    14889   14718        99.00%
                                 n     units/offices

                             Shenzhe   Commercial
     Kangti Building                                   75.00%    2096    2096        100.00%
                                 n     units/offices


                                                                                                23
ShenZhen Properties & Resources Development (Group) Ltd.                         Annual Report 2020


                            Shenzhe   Commercial
     Kangti Building                                   15.00%    1147    1147        100.00%
                                n     units/offices

                                      Commercial
                            Shenzhe
     Lyuhua Building                      and          75.00%    6960    6578         94.51%
                                n
                                       residential

Shops on the ground floor
                            Shenzhe
  of Tower 48 in Lianhua                 Shops         75.00%    1000    1000        100.00%
                                n
      North Village

                                      Apartments
                            Shenzhe       and
  Haonianhua Building                                  100.00%   1803    1774         98.00%
                                n     commercial
                                          units

                                      Apartments
                            Shenzhe       and
  Haonianhua Building                                  75.00%    2278    2235         98.00%
                                n     commercial
                                          units

                            Shenzhe
 Hostel 2 at Yuxin School                Hostel        75.00%    3000    3000        100.00%
                                n

    Kaifeng Garden in       Shenzhe
                                      Residential      100.00%   1307    1084         83.00%
       Shangmeilin              n

                            Shenzhe
Fuyuan Industrial Zone                Plant area       75.00%    47130   47130       100.00%
                            n

                            Shenzhe
Tonglu Industrial Zone                Plant area       100.00%   76886   73221        95.00%
                            n

                            Shenzhe   Commercial
Gonglu Building                                        75.00%     317     317        100.00%
                            n         /offices

                            Shenzhe
Gonglu Building                       Offices          100.00%    89      89         100.00%
                            n

                            Shenzhe
Jiangling Industrial Zone             Plant area       75.00%    10397   10397       100.00%
                            n

                            Shenzhe   Commercial
Zone 21                                                75.00%    9514    9514        100.00%
                            n         /offices

                            Shenzhe
Baoli Community                       Residential      75.00%    9020    9003         99.81%
                            n

                            Shenzhe
Songgang Plant                        Plant area       75.00%    5700    5700        100.00%
                            n

                            Shenzhe
Longbu Plant                          Plant area       75.00%    7471    7471        100.00%
                            n

Gonglu Building in          Shenzhe   Offices          75.00%    4600    4461         96.98%

                                                                                                24
ShenZhen Properties & Resources Development (Group) Ltd.                                                                     Annual Report 2020


 Huanggang                        n

                                  Shenzhe
 Yuetong Complex                             Offices            75.00%                   3044                    3044            100.00%
                                  n

(VII) Primary land development
□ Applicable √ Not applicable

(VIII) Financing channels

                                                  Financing cost                                 Maturity structure
                         Ending balance of
  Financing channel                               range/average           Within 1
                             financings                                                  1-2 years            2-3 years        Over 3 years
                                                  financing cost            year

      Bank loans          3,618,800,000.00             4%-6%                                             3,000,000.00        3,615,800,000.00

         Total            3,618,800,000.00             4%-6%                                             3,000,000.00        3,615,800,000.00

(IX) Development strategy and operating plan for the coming year
In regard to land reserves, the Company will continue to expand its land reserves through market competition and capital operation in
2021. It will exert more efforts in this aspect and push forward the fast launch of projects. By property types, residential projects will
be mainly distributed in the Guangdong-Hong Kong-Macao Greater Bay Area, the Yangtze River Delta Metropolitan Area, and the
areas with existing projects. Besides, the Company will gradually pay attention to and expand its presence in key cities in the central
urban agglomeration centering on Wuhan, the Chengdu-Chongqing Region in western China, and the Beijing-Tianjin-Hebei Region.
Urban renewal projects will primarily be launched in Shenzhen and the areas surrounding Shenzhen like Dongguan and Huizhou.
The Company will gradually track such projects in Guangzhou. Most of the comprehensive industry-city projects will be located in
the Guangdong-Hong Kong-Macao Greater Bay Area, the Yangtze River Delta, central China centering on Wuhan, and the
Chengdu-Chongqing Region in western China.
In regard to sales, in 2021, the Company will constantly enhance the overall control over the general goal, phased objectives,
schedule, and investment plan of all projects, pay close attention to the whole sales of Tower A and the remaining houses of Tower C
of Golden Collar Holiday Apartment, and fully promote the construction of Phases I and II of Guanlan Bangling. Furthermore, it will
strive to sell all houses of Hupan Yujing out and complete and deliver Banshan Yujing Phase II in Xuzhou and endeavor to complete
the project setup of the Fuyuan Industry Park, the land replacement of Baolu, the capping of Phase II of Fuchang, and the
construction of Yupin Luanshan.
Please refer to “IX Prospects” in “Part IV Operating Performance Discussion and Analysis”.
(X) Provision of guarantees for homebuyers on bank mortgages
√ Applicable □ Not applicable
As a usual practice for real estate developers, the Company has been providing guarantees and security deposits for its homebuyers
on their bank mortgages. As at 31 December 2020, security deposits for such outstanding guarantees amounted to RMB1,148,647.30,
which will be returned upon the expiry of the guarantees, i.e. when the relevant homebuyers paid off their bank mortgages. On the
ground that there have been no default by the homebuyers so far and that the market prices of the relevant properties are currently
higher than the trading prices, the Company believes the risk associated with such guarantees is low.
(XI) Joint investments by directors, supervisors and senior management and the listed company (applicable for such
investments where the directors, supervisors and senior management are the investment entities)
√ Applicable □ Not applicable

   Name of          Type of investment         Amount of           % of            As % of the    Cumu           Disinvest     Compatibility
    project                entity              investment      investmen           peak of the       lative        ment          of actual

                                                                                                                                                25
ShenZhen Properties & Resources Development (Group) Ltd.                                                                 Annual Report 2020


                                                 (RMB’0,00        t amount      project funds     inco                     investment
                                                     0)                                            me                       amount and
                                                                                                                            distributed
                                                                                                                              income

 Urban             Mandatory investment
 Renewal of        entities (including
                                                  2,647.00          66.18%           N/A            0            None          N/A
 Bangling          directors and senior
 Section at        management)
 Guanlan           Voluntary investment
                                                  1,353.00          33.82%           N/A            0            None          N/A
 Street            entities

Note: Since this is an ongoing project, the peak of the project funds, cumulative income and disinvestment are unknown. For details,
please refer to the relevant announcements disclosed by the Company on www.cninfo.com.cn dated 9 November 2019.


II Core Business Analysis

1. Overview

See “I Overview” above.


2. Revenue and Cost Analysis

(1) Breakdown of Operating Revenue

                                                                                                                                Unit: RMB

                                             2020                                          2019

                                                    As % of total                                  As % of total
                                                                                                                          Change (%)
                          Operating revenue      operating revenue       Operating revenue       operating revenue
                                                          (%)                                             (%)

 Total                        4,104,374,646.02                   100%     3,961,669,942.44                       100%              3.60%

 By operating division

 Property
                              2,895,323,736.80                  70.54%    2,665,571,690.51                      67.28%             8.62%
 development

 Property
                              1,070,094,746.33                  26.07%    1,097,767,114.02                      27.71%            -2.52%
 management

 Property rental               138,956,162.89                   3.39%         198,331,137.91                    5.01%            -29.94%

 By product category

 Property
                              2,895,323,736.80                  70.54%    2,665,571,690.51                      67.28%             8.62%
 development

 Property
                              1,070,094,746.33                  26.07%    1,097,767,114.02                      27.71%            -2.52%
 management


                                                                                                                                          26
ShenZhen Properties & Resources Development (Group) Ltd.                                                                 Annual Report 2020


 Property rental           138,956,162.89                     3.39%            198,331,137.91                 5.01%              -29.94%

 By operating segment

 Shenzhen                 3,718,740,286.40                  90.60%        3,712,909,688.00                 93.72%                  0.16%

 Other                     385,634,359.62                     9.40%            248,760,254.44                 6.28%               55.02%


(2) Operating Division, Product Category or Operating Segment Contributing over 10% of Operating
Revenue or Operating Profit


√ Applicable □ Not applicable

                                                                                                                                 Unit: RMB

                                                                      Gross         YoY change in      YoY change in       YoY change in
                    Operating revenue         Cost of sales           profit             operating      cost of sales       gross profit
                                                                      margin          revenue (%)             (%)           margin (%)

 By operating division

 Property
                       2,895,323,736.80      388,253,086.57            86.59%                 8.62%            -10.56%             2.88%
 development

 Property
                       1,070,094,746.33      912,325,050.31            14.74%                 -2.52%            -0.56%            -1.68%
 management

 By product category

 Property
                       2,895,323,736.80      388,253,086.57            86.59%                 8.62%            -10.56%             2.88%
 development

 Property
                       1,070,094,746.33      912,325,050.31            14.74%                 -2.52%            -0.56%            -1.68%
 management

 By operating segment

Core business data of the prior year restated according to the changed statistical caliber for the Reporting Period:

□ Applicable √ Not applicable


(3) Whether Revenue from Physical Sales Is Higher than Service Revenue

√ Yes □ No

 Operating division               Item                Unit                        2020                 2019               Change (%)

                           Sales volume                m2                           47,540.93           69,138.45                -31.23%
       Property
                              Output                   m2                            262,098              262,098                  0.00%
    development
                             Inventory                 m2                           76,447.91              114,628               -38.18%

Any over 30% YoY movements in the data above and why:

√ Applicable □ Not applicable

Due to cyclical changes in the industry, as well as the development and sales progress of projects, etc., the sales volume and the
                                                                                                                                           27
ShenZhen Properties & Resources Development (Group) Ltd.                                                                   Annual Report 2020


inventory both showed a decrease.


(4) Execution Progress of Major Signed Sales Contracts in the Reporting Period

□ Applicable √ Not applicable


(5) Breakdown of Cost of Sales

By operating division
                                                                                                                                  Unit: RMB

                                                           2020                                     2019
    Operating                                                     As % of total                            As % of total
                           Item                                                                                               Change (%)
     division                              Cost of sales          cost of sales     Cost of sales          cost of sales
                                                                      (%)                                      (%)

 Property
                                         388,253,086.57                 28.00%     434,102,478.63                30.28%            -10.56%
 development

 Property
                                         912,325,050.31                 65.79%     917,506,251.33                64.00%              -0.56%
 management

 Property rental                           86,132,102.66                  6.21%     82,007,155.47                  5.72%             5.03%




(6) Changes in the Scope of Consolidated Financial Statements for the Reporting Period

√ Yes □ No
One new entity was added to the consolidated financial statements of the year under review compared to last year. See “VIII Changes
to the Consolidation Scope” in “Part XII Financial Statements” in this Report.


(7) Major Changes to the Business Scope or Product or Service Range in the Reporting Period

□ Applicable √ Not applicable


(8) Major Customers and Suppliers

Major customers:

 Total sales to top five customers (RMB)                                                                                    354,418,642.97

 Total sales to top five customers as % of total sales of the
                                                                                                                                    8.64%
 Reporting Period (%)

 Total sales to related parties among top five customers as % of
                                                                                                                                    1.17%
 total sales of the Reporting Period (%)

Information about top five customers:

   No.                        Customer                            Sales revenue contributed           As % of total sales revenue (%)

                                                                                                                                           28
ShenZhen Properties & Resources Development (Group) Ltd.                                                 Annual Report 2020


                                                           for the Reporting Period
                                                                     (RMB)

             Property Management Center of the
      1                                                                 237,929,904.00                             5.80%
             Government of Futian District, Shenzhen

             Shenzhen Bay Technology Development
      2                                                                  47,871,320.92                             1.17%
             Co., Ltd.

      3      Tencent Technology (Shenzhen) Co., Ltd.                     27,967,605.26                             0.68%

      4      Tao Bao (China) Co., Ltd.                                   22,981,728.34                             0.60%

      5      WeBank Co., Ltd.                                            17,668,084.45                             0.43%

     Total                          --                                  354,418,642.97                             8.64%

Other information about major customers:
□ Applicable √ Not applicable
Major suppliers:

 Total purchases from top five suppliers (RMB)                                                            338,484,600.00

 Total purchases from top five suppliers as % of total purchases
                                                                                                                  50.06%
 of the Reporting Period (%)

 Total purchases from related parties among top five suppliers
                                                                                                                   0.00%
 as % of total purchases of the Reporting Period (%)

Information about top five suppliers:

                                                          Purchase in the Reporting
      No.                         Supplier                                               As % of total purchases (%)
                                                                   Period (RMB)

              The Fifth Construction Co., Ltd of
 1            China Construction Fourth Engineering                     227,074,600.00                            33.59%
              Bureau

              Shenzhen Futian Security Service Co.,
 2                                                                       34,299,200.00                             5.07%
              Ltd.

              Shenzhen Ruihe Construction
 3                                                                       29,126,900.00                             4.31%
              Decoration Co., Ltd.

              Shenzhen Weiye Decoration Group Co.,
 4                                                                       29,004,600.00                             4.29%
              Ltd.

              Shenzhen Shenxu Air-Conditioning Eng.
 5                                                                       18,979,300.00                             2.81%
              Co., Ltd.

 Total                               --                                 338,484,600.00                            50.06%

Other information about major suppliers:
□ Applicable √ Not applicable




                                                                                                                        29
ShenZhen Properties & Resources Development (Group) Ltd.                                                     Annual Report 2020


3. Expense

                                                                                                                      Unit: RMB

                                    2020                  2019         Change (%)        Reason for any significant change

                                                                                       Decrease in commissions for sales
 Selling expenses                  44,753,247.18     111,553,952.50        -59.88%
                                                                                       agents and advertising expenditure

                                                                                       Increase in remunerations,
 Administrative
                                  238,625,143.31     204,654,552.64         16.60%     intermediary agent expense, and
 expenses
                                                                                       depreciation and amortization expense

                                                                                       Decrease in the average interest rate of
 Finance costs                    111,263,558.80     134,718,833.57        -17.41%
                                                                                       borrowings


4. R&D Investments

□ Applicable √ Not applicable


5. Cash Flows

                                                                                                                      Unit: RMB

                 Item                              2020                       2019                         Change (%)

 Subtotal of cash generated from
                                                   4,809,961,005.82          5,264,435,040.93                           -8.63%
 operating activities

 Subtotal of cash used in operating
                                                   4,424,463,223.70          4,324,645,474.97                            2.31%
 activities

 Net cash generated from/used in
                                                    385,497,782.12             939,789,565.96                         -58.98%
 operating activities

 Subtotal of cash generated from
                                                          136,131.48                 357,613.40                       -61.93%
 investing activities

 Subtotal of cash used in investing
                                                     48,482,853.70           1,031,698,003.98                         -95.30%
 activities

 Net cash generated from/used in
                                                     -48,346,722.22          -1,031,340,390.58                        -95.31%
 investing activities

 Subtotal of cash generated from
                                                   2,176,820,000.00          2,236,220,000.00                           -2.66%
 financing activities

 Subtotal of cash used in financing
                                                   1,627,885,573.80          2,740,366,078.11                         -40.60%
 activities

 Net cash generated from/used in
                                                    548,934,426.20            -504,146,078.11                        -208.88%
 financing activities

 Net increase in cash and cash
                                                    882,809,678.36            -595,682,024.42                        -248.20%
 equivalents
                                                                                                                                  30
ShenZhen Properties & Resources Development (Group) Ltd.                                                           Annual Report 2020


Explanation of why any of the data above varies significantly:
√ Applicable □ Not applicable
 Net cash generated from operating activities decreased year on year, primarily driven by the payment of a large amount of taxes
and levies in the Reporting Period for which provisions were made in the prior period.
② Net cash used in investing activities decreased year on year, primarily driven by a decrease in payments for the acquisition of
equity investments in the Reporting Period.
③ Net cash generated from financing activities increased year on year, primarily driven by new bank borrowings.


Reason for any big difference between the net operating cash flow and the net profit for this Reporting Period
√ Applicable □ Not applicable
For the Reporting Period, net cash generated from operating activities stood at RMB385,497,782.12, representing a big difference
from the net profit of RMB731,337,869.73, primarily driven by the time difference between making tax provisions for real estate
development projects and the actual payments, as well as between the receipt of property sales and the recognition of these sales.


III Analysis of Non-Core Businesses

√ Applicable □ Not applicable
                                                                                                                              Unit: RMB

                      Amount          As % of total profit                   Source/Reason                       Recurrent or not

 Return on
                       634,098.07                  0.06%     Share of profits of joint ventures                         Yes
 investment

 Asset
                       -51,185.46                  0.00%     Changes in inventory valuation allowances                  Not
 impairments

 Non-operati
                    11,697,661.23                  1.13%     Compensation for demolition                                Not
 ng income

 Non-operati                                                 Lawsuit-related compensation and
                     5,244,329.50                  0.51%                                                                Not
 ng expense                                                  compensation for removing tenants

 Credit                                                      Changes in allowances for doubtful
                     4,623,356.81                  0.45%                                                                Not
 impairments                                                 receivables


IV Analysis of Assets and Liabilities

1. Significant Changes in Asset Composition

Indicate whether the Company has adopted the new accounting standards governing revenue and leases since 2020 and restated the
beginning amounts of relevant financial statement line items in the year.
Applicable.
                                                                                                                              Unit: RMB

                               31 December 2020                    1 January 2020                 Change in
                                                                                                                  Reason for any
                                                                                                  percentage
                             Amount           As % of            Amount           As % of                        significant change
                                                                                                     (%)
                                                                                                                                      31
ShenZhen Properties & Resources Development (Group) Ltd.                                         Annual Report 2020


                                           total                            total
                                          assets                           assets

                                                                                             Increase in sales
Monetary assets        4,206,266,629.32   34.46%     3,297,890,935.91      30.61%   3.85%    recognized and bank
                                                                                             borrowings

                                                                                             Decrease in arrears
                                                                                             due to greater efforts
Accounts                                                                                     spent by the property
                        187,697,631.47    1.54%        216,923,663.25      2.01%    -0.47%
receivable                                                                                   management
                                                                                             subsidiaries on
                                                                                             payment collection

                                                                                             Recognition of cost
                                                                                             of the Golden Collar
                                                                                             project, and increase
Inventories            5,312,489,258.20   43.52%     4,913,510,876.66      45.61%   -2.09%   in capitalized
                                                                                             expense of the
                                                                                             Bangling and other
                                                                                             projects

Investment                                                                                   Depreciation
                        484,738,506.83    3.97%        503,323,428.61      4.67%    -0.70%
property                                                                                     allowances

Long-term equity
                         45,710,220.79    0.37%            45,076,122.72   0.42%    -0.05%
investments

                                                                                             Increase in
                                                                                             decoration expense
Fixed assets            116,233,936.04    0.95%            93,557,782.83   0.87%    0.08%    on the Company’s
                                                                                             own housing
                                                                                             properties

Long-term                                                                                    New borrowing in
                       3,587,800,000.00   29.39%     2,193,833,000.00      20.37%   9.02%
borrowings                                                                                   the Reporting Period

                                                                                             Settlement of certain
Other receivables       789,050,350.51    6.46%        917,981,165.74      8.52%    -2.06%   receivables from
                                                                                             external parties

                                                                                             Increase in
Deferred income
                        950,681,245.50    7.79%        658,153,122.73      6.11%    1.68%    tax-related
tax assets
                                                                                             deductible loss

                                                                                             Decrease in accounts
Accounts payable        468,269,685.65    3.84%        577,689,139.10      5.36%    -1.52%   payable for
                                                                                             engineering

                                                                                             Recognition of
Contract liabilities    666,893,629.72    5.46%        690,543,580.95      6.41%    -0.95%
                                                                                             operating revenue


                                                                                                                      32
ShenZhen Properties & Resources Development (Group) Ltd.                                                                  Annual Report 2020


 Other non-current
                          108,778,327.45          0.89%           108,164,737.46       1.00%           -0.11%
 liabilities


2. Assets and Liabilities at Fair Value

√ Applicable □ Not applicable
                                                                                                                                 Unit: RMB

                                    Gain/loss
                                                                     Impairme
                                       on          Cumulative
                                                                        nt         Purchas     Sold in
                                    fair-value      fair-value
                   Beginning                                        allowance      ed in the     the             Other          Ending
      Item                         changes in        changes
                     amount                                           for the      Reportin    Reportin         changes         amount
                                       the          charged to
                                                                    Reporting      g Period    g Period
                                   Reporting         equity
                                                                      Period
                                     Period

 Financial
 assets

 Investments
 in       other
                   1,580,475.86                    -494,182.95                                              -41,387.79       1,044,905.12
 equity
 instruments

 Subtotal of
 financial         1,580,475.86                    -494,182.95                                              -41,387.79       1,044,905.12
 assets

 Total of the
                   1,580,475.86                    -494,182.95                                              -41,387.79       1,044,905.12
 above

 Financial
                            0.00                           0.00                                                      0.00            0.00
 liabilities

Other changes are impacts of exchange rate fluctuations.


Significant changes to the measurement attributes of the major assets in the Reporting Period:
□ Yes √ No


3. Restricted Asset Rights as at the Period-End

(1) In term of monetary assets with restricted right to use at the period-end, there was limited capital of frozen account with
RMB11,031.58 in the subsidiary company Shenzhen Huazhengpeng Property Management Co., Ltd.
(2) In term of monetary assets with restricted right to use at the period-end, there was custody deposit account with RMB44,554.35 in
the subsidiary company Catering Branch of Shandong Shenguomao Real Estate Management.
(3) In term of monetary assets with restricted right to use at the period-end, there was RMB1,148,647.30, which is the Company as a
real estate developer and historically provided mortgage guarantees and paid loan guarantees for commercial housing purchasers in
accordance with real estate business practices.
(4) In term of monetary assets with restricted right to use at the period-end, there was payment guarantee with RMB11,213,310.06
                                                                                                                             33
      ShenZhen Properties & Resources Development (Group) Ltd.                                                       Annual Report 2020


      (principal of RMB11,075,002.60 and interest of RMB138,307.46) in the subsidiary company Xuzhou Company, which signed the No.
      Xingyin Xubao (2020) 25 payment guarantee with Jiangsu Hanjian Group on 1 June 2020.
      (5) In term of monetary assets with restricted right to use at the period-end, there was RMB25,394,174.20 which is the interest of
      fixed deposits accrued at the end of the period.
      (6) In term of monetary assets with restricted right to use at the period-end, there was an guarantee letter of RMB300,000.00 issued
      by the subsidiary company Supervision Company for the second phase project supervision and service project of Bangling District,
      Guanlan Street, Longhua District of Rongyao Real Estate in 2020.
      (7) The Company applied for a loan from Shenzhen Branch of Bank of Communication Co., Ltd. with the land use right of Fumin
      New Village, Futian District as the pledge due to the needs of its daily business activities. The period of the loan is from 27
      November 2020 to 27 November 2023. The interest of the loan is a floating interest rate and the first execution interest rate is
      4.655%.


      V Investments Made

      1. Total Investment Amount

      □ Applicable √ Not applicable


      2. Major Equity Investments Made in the Reporting Period

      □ Applicable √ Not applicable


      3. Major Non-Equity Investments Ongoing in the Reporting Period

      □ Applicable √ Not applicable


      4. Financial Investments

      (1) Securities Investments


      √ Applicable □ Not applicable


                                                                                                                              Unit: RMB
                                                                    Gai
                                                                    n/L
                                                                    oss
                                                                     on    Accum
                                              Accou                 fair   ulated   Purc                                                Sourc
Variet                  Name       Initial                                                  Sold
                                               nting                valu     fair   hase             Gain/lo
                                                         Beginni                              in                                         e of
 y of       Code of       of                  measu                   e     value    d in             ss in     Ending     Account
                                   investm                  ng                              Repor
                                              remen                 cha    change   Repo             Reporti    carrying                invest
securit     security   securit                           carrying                            ting                           ing title
                                                 t                  nge       s     rting              ng        value
                                   ent cost               value                             Perio                                       ment
  y                       y                   metho                 s in   charge   Perio            Period
                                                                                               d
                                                 d                  Rep      d to     d                                                 funds
                                                                    orti   equity
                                                                     ng
                                                                    Peri
                                                                     od


                                                                                                                                        34
        ShenZhen Properties & Resources Development (Group) Ltd.                                                  Annual Report 2020


                                                                                                                                   Obtain
                                                                                                                        Investm
                                                                                                                                   ed in
Dome                       Gintia               Fair                                                                    ents in
                                                                                                                                   Gintia
stic/Fo     400016、 n A,            3,565,85   value    1,580,47          -494,1                 -41,387.   1,044,90   other
                                                                    0.00            0.00   0.00                                    n’s
reign       420016         Gintia        6.06   metho       5.86           82.95                       79       5.12    equity
                                                                                                                                   debt
stock                      nB                   d                                                                       instrume
                                                                                                                                   restruc
                                                                                                                        nts
                                                                                                                                   turing

                                     3,565,85            1,580,47          -494,1                 -41,387.   1,044,90
Total                                               --              0.00            0.00   0.00                               --        --
                                         6.06               5.86           82.95                       79       5.12

Disclosure          date        of
announcement on Board’s
consent       for     securities
investment

Disclosure          date        of
announcement                    on
shareholders’        meeting’s
consent       for     securities
investment (if any)


    (2) Investments in Derivative Financial Instruments


    □ Applicable √ Not applicable
    No such cases in the Reporting Period.


    5. Use of Funds Raised

    □ Applicable √ Not applicable
    No such cases in the Reporting Period.


    VI Sale of Major Assets and Equity Interests

    1. Sale of Major Assets

    □ Applicable √ Not applicable
    No such cases in the Reporting Period.


    2. Sale of Major Equity Interests

    □ Applicable √ Not applicable


    VII Major Subsidiaries

    √ Applicable □ Not applicable

                                                                                                                                   35
      ShenZhen Properties & Resources Development (Group) Ltd.                                                            Annual Report 2020


     Major fully/majority-owned subsidiaries and those minority-owned subsidiaries with an over 10% effect on the Company’s net profit:


                                                                                                                                    Unit: RMB

                 Relationsh
                                Principal     Registered                                               Operating     Operating
   Name          ip with the                                    Total assets         Net assets                                       Net profit
                                 activity      capital                                                  revenue        profit
                 Company

Shenzhen                       Developme
Huangcheng                     nt and sales                                                            2,842,263,   1,111,460,7
                 Subsidiary                   30000000       4,640,791,319.39    1,592,008,734.84                                   831,385,847.81
Real Estate                    of real                                                                    700.56          91.87
Co., Ltd.                      estate

Shenzhen
                               Developme
Rongyao
                               nt and sales                                                                          -289,665,8
Real Estate      Subsidiary                   10000000       4,379,435,501.61      125,509,116.39            0.00                   -217,986,090.23
                               of real                                                                                    46.19
Developme
                               estate
nt Co., Ltd.

     Subsidiaries obtained or disposed in the Reporting Period:
     √ Applicable □ Not applicable

                                                           How subsidiary was obtained or              Effects on overall operations and
                       Subsidiary
                                                           disposed in the Reporting Period                 operating performance

               Shenzhen SZPRD Fuyuantai                                                             Income was of RMB0, and the loss was
                                                                 Newly established
                 Development Co., Ltd.                                                              of RMB2000


     VIII Structured Bodies Controlled by the Company

     √ Applicable □ Not applicable
     For details, see IX 1. Equity interests in subsidiaries in Part XII Financial Report herein.


     IX Prospects

     (I) Development Environment Analysis

     Refer to "(I) Review of industry development during the reporting period" in "Part IV: Operating Performance Discussion and
     Analysis"

     (II) The Company’s Future Development Strategy

     As the traditional real estate market’s development declines on the whole, various industrial resources have been continuously
     occupied by the large-scale brand houses, which has threatened the survival and development of medium and small-sized property
     companies. “Large-scale Enterprises Taking All Advantages” has become normal in the industry, and the positioning of “Houses are
     for living in, not for speculating on” has already been established. In this case, Shenzhen Properties & Resources Development
     (Group)Ltd. specialized in the traditional real estate will be confronted with the extremely severe industrial situation.
     In this context, the Company put forward the “12345” overall development idea of “1 Vision + 2 Major Sectors + 3 Driving Factors +
     4 Businesses + 5 Value-added Services”. In other words, the Company will take effective measures with the focus on “spatial asset
     management” and “data asset management” to develop four major businesses including industrial and urban space development,
                                                                                                                                           36
ShenZhen Properties & Resources Development (Group) Ltd.                                                           Annual Report 2020


industrial ecological operation, property management services, and main ecological investment through expanding the main business
and making breakthroughs. Meanwhile, the Company will realize rapid deployment and integration of five major value-added
services including high-end consulting services, customized housekeeper services, intelligent operation platform, big data operation
and ecosystem integration. Base on Shenzhen with scientific and technological innovation as the primary driving force, the Company
will include Guangdong, Hong Kong and Macao metropolitan area and surrounding areas to maximize the leverage of capital to build
a door type intelligent management and control service platform with basic functions, aiming to build “the world’s leading intelligent
operator of industrial and urban space”.
In accordance with three-step strategic implementation route of “strengthening bases, brink breakthrough, and focus on leading”, the
Company will seek transformation and upgrading in the development base on the current development conditions, and promote
incremental development in the transformation to build unique development advantages and create a new pattern of innovation and
development of the Company.
(III) Key tasks in 2021
Standing at the new historical starting point, the Company will keep the general principal of steady and progress in 2021 and focus
on promoting high-quality transformation and development based on the guide line of “expansion, acceleration, transformation,
empowerment and effectiveness”.
I. Focusing on project launch. The Company will increase investment in expansion to cover the planned construction of new
integration project of production towns over 600,000 ㎡ in the year, including the promotion of launch of projects of Yangzhou
Slender West Lake Ecological Health Valley and urban renewal of Fuyuan Industrial Zone, the signing of cooperation development
agreement on Tianjun Industrial Park project, and completion of adjustment of the renewal direction of Guangming Tangjia project
and functional substitution of industrial land of Baolu.
II. Overall control and promotion of project construction. The newly started construction area is over 620,000m2, including the
construction of Phase I and II of Bengling project, which shall be fully and legally started, the advance booking of Phase II of
Bengling project; the completion of improvement of Block A of Jinling project to ensure sales and admission; the signing of contract
on the capping and counter-purchase of the main part of Fuchang Phase II project; and the construction of Yupinluanshan Garden to ±
0 level, focusing on the completion of approval procedure of project separation and transfer and listing.
III. Consolidation of the base of four business platforms. The Company will basically form platform operation capability of space
development plate with the ability to independently execute project operation in the whole process; construct investment
management system of industrial ecological operation section to explore operation transformation and upgrading and improve asset
operation ability, aiming to complete the industrial positioning report and investment operation plan of Bengling project, Yangzhou
project and Fuyuan Industrial Zone; complete the construction of professional operation standard model and precise assessment
system, focusing on the completion of repositioning and system process reconstruction of the headquarters of ITC Property
Management Co., Ltd.; achieve new material management area not less than 10 million ㎡ and endogenous growth not less than 1
million ㎡ by means of M&A and joint venture cooperation, and try to complete the establishment and operation mechanism
construction of the industrial investment platform company of the Group, establish and operate industrial funds, and carry out
targeted investment.
IV. Financial management enhancement for business development. The Company will enhance comprehensive budget
management to control and assess budget; improve the integration of industry and finance, financial analysis and tax planning, and
dynamic traction of asset liability ratio, ROE and IRR on business operation; innovate financing methods, broaden financing
channels, reduce overall capital cost, and raise funds from multiple channels according to the company’s financial standing and actual
conditions to ensure business development of the Group.
V. Risk control enhancement for safety in production. The Company will keep promoting the standardization of safe production
and the construction of “dual prevention mechanism” by implementing list management on key areas and risk points of important
links and building information platform for safe production and construction for accident prevention throughout the year. The
Company will also work on request from complaint letters and visits and risk investigation and prevention, and strengthen dynamic

                                                                                                                                     37
ShenZhen Properties & Resources Development (Group) Ltd.                                                             Annual Report 2020


tracking and implementation of major risks to maintain stable operation and development of the Group.
VI. Talent team development for joint force of development. The Company will actively promote the construction of multi-level
incentive mechanism, focusing on the tenure system and contractual management of managers, by formulating and implementing
incentive schemes such as long-term incentive, excess bonus, project node award and incremental sharing of subordinate enterprises
on the basis of salary benchmarking market, and realize full coverage of incentive principles for incremental performance determined
by incremental revenue. The Company will develop cadre teams by broadening personnel selection and employment, and optimize
talent introduction, reservation, training and use to meet the business development needs of the Group. The Company will also
strengthen branding of the Group training center, build a high-level talent training system, and increase the exchange and rotation of
Group employees to fully improve the comprehensive ability and quality of employees for group business development.
(IV) Risk analysis
1. Market risk
Affected by the epidemic, China’s economic growth rate declined in 2020. As consumption decreased, the Company faces business
development opportunities and challenges. The guidance of polices of “ensuring stability in employment, financial operation, foreign
trade, foreign investment, domestic investment and expectations”, “ensuring security in job, basic living needs, operations of market
entities, food and energy security, stable industrial and supply chains, and the normal functioning of primary-level government”,
“three red lines” and “houses are for living in, not for speculating on” which remain unchanged led to a downward track of the
demand end of real estate market, and the central government is implementing strict financial supervision on the real estate market.
Due to the epidemic, the construction period of some projects under construction has lagged behind. As payment rate of property
management fee is low and main income from sales and rent are under downward pressure, the market environment is complex.
Facing the difficulties, the Company studied the opportunities and challenges brought by macroeconomic and policy trend for
strategic breakthrough. The Company put forward the “12345” overall development idea of “1 Vision + 2 Major Sectors + 3 Driving
Factors + 4 Businesses + 5 Value-added Services”, and included Guangdong, Hong Kong and Macao metropolitan area and
surrounding areas in expansion target based on Shenzhen to improve sustainable development ability.
2. Land Reserve Risk
As a matter of fact, the Company still lacks enough land reserves and development power at later stages. In recent years, the supply
of residential land on Shenzhen Market has continuously declined. As the price of each single plot increases year after year, various
large-scale real estate enterprises have enlarged their market shares and accelerated their M&A pace. While the real estate industry is
centralizing, the degree of centralization of the land reserve scale has also been enhanced. As the external environment and the
industry’s trend become much more complicated and severe, the increment market scale will further shrink and the market
competition will become increasingly fierce.
Facing the challenges, the Company will continue to expand through market competition, capital operation and urban renewal,
increase land reserves and promote the launch of projects. In respect to property type, residential projects will focus on
Guangdong-Hong Kong-Macao Greater Bay Area, Yangtze River Delta metropolitan area and areas where existing projects locate,
and gradually turn to central urban agglomeration surrounding Wuhan, key cities in Chengdu- Chongqing in the West and those in
Beijing, Tianjin and Hebei. Urban renewal projects will focus on Shenzhen, Dongguan and Huizhou, and follow-up of urban renewal
projects in Guangzhou. Comprehensive industry and urban projects will focus on Guangdong-Hong Kong-Macao Greater Bay Area,
Yangtze River Delta region, Wuhan region in the central part and Chengdu-Chongqing area in the West.
3. Financing Risk
As the central government tightened financial supervision over real estate and implemented the “three red lines” in the second half of
2020, financing of real estate enterprises are further restricted. In the process of actively increasing land reserves and accelerating the
business development, the Company needs to invest a large amount of funds for land acquisition and project development. In
addition to its own funds, the Company’s project development funds need to be externally financed through bank loans and issuing
securities.
Currently, the Company has steady financial situation, sufficient cash flow and good credit condition, and will further strictly control
                                                                                                                                       38
ShenZhen Properties & Resources Development (Group) Ltd.                                                             Annual Report 2020


financial risks, actively explore various financing channels so as to raise funds for project development in the future.
The above business plan and business objectives do not represent the listed Company’s profit forecast for 2021. Whether it
can be achieved depends on various factors including changes in market conditions and the effort made by the management
team. Investors must pay special attention to that because there exists huge uncertainty.


X Communications with the Investment Community such as Researches, Inquiries and
Interviews

1. During the Reporting Period

√ Applicable □ Not applicable

                            Place
      Date of visit                    Way of visit      Type of visitor      Visitor           Contents and materials provided
                            of visit

                           The
                                                                                          Inquired of disclosure of the Company’s
 2020-01-02                Compa       Others           Individual          Individual
                                                                                          2011 annual report
                           ny

                           The
                                                                                          Inquired of completion of occupation of
 2020-01-06                Compa       Others           Individual          Individual
                                                                                          Golden Collar’s Resort Project
                           ny

                           The
                                                                                          Inquired of the transfer of some shares by
 2020-02-24                Compa       Others           Individual          Individual
                                                                                          SIHC Agreement
                           ny

                           The
                                                                                          Inquired of the Company’s stock price
 2020-03-04                Compa       By phone         Individual          Individual
                                                                                          performance and result
                           ny

                           The
                                                                                          Inquired of the custody situation of China
 2020-03-05                Compa       Others           Individual          Individual
                                                                                          Shenzhen Foreign Trade Group
                           ny

                           The
                                                                                          Inquired of the construction status of the
 2020-03-18                Compa       By phone         Individual          Individual
                                                                                          project in the annual report
                           ny

                           The
                                                                                          Inquired of the inventory and project
 2020-03-18                Compa       By phone         Individual          Individual
                                                                                          construction status in the annual report
                           ny

                           The                                                            Inquired of the income of the property
 2020-03-18                Compa       By phone         Individual          Individual    management sector and the progress of the
                           ny                                                             Bangling project in the annual report

                           The
                                                                                          Inquired of the performance of Rongyao
 2020-03-21                Compa       Others           Individual          Individual
                                                                                          Real Estate
                           ny

 2020-03-23                The         By phone         Individual          Individual    Inquired of the proportion of business

                                                                                                                                     39
ShenZhen Properties & Resources Development (Group) Ltd.                                                Annual Report 2020


                       Compa                                              sectors and project progress in the annual
                       ny                                                 report

                       The
                                                                          Inquired of the Company's share price
2020-04-02             Compa     By phone       Individual   Individual
                                                                          performance
                       ny

                       The
                                                                          Inquired of the Company’s general meeting
2020-04-02             Compa     By phone       Individual   Individual
                                                                          of shareholders
                       ny

                       The
2020-04-02             Compa     Others         Individual   Individual   Inquired of the Company's work resumption
                       ny

                       The
                                                                          Inquired of the Company's first-quarter
2020-04-03             Compa     Others         Individual   Individual
                                                                          report disclosure time
                       ny

                       The                                                Inquired   of      the    profitability   of   the
2020-04-07             Compa     By phone       Individual   Individual   Company's 2019 property management
                       ny                                                 sector

                       The
                                                                          Inquired of the Company's implementation
2020-04-08             Compa     By phone       Individual   Individual
                                                                          of dividends
                       ny

                       The
                                                                          Inquired of the Company’s leasing business
2020-04-08             Compa     By phone       Individual   Individual
                                                                          development
                       ny

                       The                                                Inquired of the Company's 2020 sales
2020-04-13             Compa     By phone       Individual   Individual   forecast, dividends, restructuring, project
                       ny                                                 progress

                       The                                                Inquired of the Company’s sales and
2020-04-14             Compa     By phone       Individual   Individual   construction      of     Bangling   project    and
                       ny                                                 Golden Collar’s Resort project

                       The
                                                                          Inquired of the Company's annual report
2020-04-15             Compa     Others         Individual   Individual
                                                                          information disclosure
                       ny

                       The
2020-04-16             Compa     Others         Individual   Individual   Inquiry of the date of equity registration
                       ny

                       The
                                                                          Inquired of the Company's saleable real
2020-04-18             Compa     Others         Individual   Individual
                                                                          estate projects
                       ny

                       The                                                Inquired of the Company's Golden Collar’s
2020-04-23                       By phone       Individual   Individual
                       Compa                                              Resort project sales

                                                                                                                           40
ShenZhen Properties & Resources Development (Group) Ltd.                                               Annual Report 2020


                       ny

                       The
                                                                          Inquired of the Company’s three main
2020-04-23             Compa     Others         Individual   Individual
                                                                          businesses
                       ny

                       The
                                                                          Inquired of the Company’s general meeting
2020-04-27             Compa     By phone       Individual   Individual
                                                                          of shareholders
                       ny

                       The
2020-04-27             Compa     Others         Individual   Individual   Inquired of stock dividends
                       ny

                       The
                                                                          Inquired of the impact of COVID-19 on the
2020-04-29             Compa     By phone       Individual   Individual
                                                                          Company's first-quarter operations
                       ny

                       The
                                                                          Inquired of the Company's net profit and
2020-04-29             Compa     Others         Individual   Individual
                                                                          dividend in the first quarter
                       ny

                       The
                                                                          Inquiry of the implementation of dividend
2020-05-06             Compa     By phone       Individual   Individual
                                                                          distribution of the Company
                       ny

                       The
2020-05-11             Compa     By phone       Individual   Individual   Inquired of the Bangling and other projects
                       ny

                       The
                                                                          Inquiry    of      the   Company's      property
2020-05-12             Compa     Others         Individual   Individual
                                                                          management business scope
                       ny

                       The
                                                                          Inquired of the demolition progress of
2020-05-14             Compa     Others         Individual   Individual
                                                                          Bangling project
                       ny

                       The                                                Inquired of the Company's first-quarter
2020-05-18             Compa     Others         Individual   Individual   revenue      and    profit   in   the   property
                       ny                                                 management sector

                       The
                                                                          Inquired of the Company's B-share stock
2020-05-20             Compa     Others         Individual   Individual
                                                                          price
                       ny

                       The
                                                                          Inquired of number of the Company’s
2020-05-26             Compa     Others         Individual   Individual
                                                                          shareholders
                       ny

                       The
                                                                          Inquired     of    the   Company's      dividend
2020-05-26             Compa     By phone       Individual   Individual
                                                                          payment status
                       ny

                                                                                                                        41
ShenZhen Properties & Resources Development (Group) Ltd.                                            Annual Report 2020


                       The
                                                                          Inquired of the impact of the mixed reform
2020-05-27             Compa     Others         Individual   Individual
                                                                          of state-owned enterprises for the Company
                       ny

                       The
                                                                          Inquired of the Company's stock XR
2020-05-28             Compa     Others         Individual   Individual
                                                                          dividends
                       ny

                       The                                                Inquired    of   the    Company's     property
2020-05-28             Compa     By phone       Individual   Individual   management sector composition and project
                       ny                                                 construction progress

                       The
                                                                          Inquired of number of the Company’s
2020-06-01             Compa     Others         Individual   Individual
                                                                          shareholders
                       ny

                       The
                                                                          Inquiry     of   the   Company's      expected
2020-06-03             Compa     Others         Individual   Individual
                                                                          performance in the first half of the year
                       ny

                       The
                                                                          Inquiry of the Company's Huiyang plot
2020-06-03             Compa     By phone       Individual   Individual
                                                                          construction progress
                       ny

                       The
                                                                          Inquiry of the Company's stock price
2020-06-04             Compa     By phone       Individual   Individual
                                                                          changes
                       ny

                       The
2020-06-04             Compa     Others         Individual   Individual   Inquiry of the Company's market value
                       ny

                       The
                                                                          Inquiry of the Company's stock price
2020-06-05             Compa     Others         Individual   Individual
                                                                          changes
                       ny

                       The
                                                                          Inquiry of if the Company has any major
2020-06-08             Compa     Others         Individual   Individual
                                                                          investment plans in the near future
                       ny

                       The
                                                                          Inquiry of the Company's stock price
2020-06-10             Compa     By phone       Individual   Individual
                                                                          changes
                       ny

                       The
2020-06-12             Compa     Others         Individual   Individual   Inquiry of managers of the Company
                       ny

                       The
                                                                          Inquiry of the Company's stock price
2020-06-12             Compa     By phone       Individual   Individual
                                                                          changes
                       ny

2020-06-15             The       Others         Individual   Individual   Inquiry of managers of the Company

                                                                                                                      42
ShenZhen Properties & Resources Development (Group) Ltd.                                                  Annual Report 2020


                       Compa
                       ny

                                                                Researche
                                                                rs from
                       The                                                   Inquiry of the Company's business in 2019,
                                                                several
2020-06-16             Compa     Field research   Institution                project construction and future business
                                                                funds and
                       ny                                                    plans
                                                                securities
                                                                companies

                       The
                                                                             Inquiry of the Company's stock price
2020-06-17             Compa     By phone         Individual    Individual
                                                                             changes
                       ny

                       The
                                                                             Inquiry of the Company's B-share stock
2020-06-17             Compa     By phone         Individual    Individual
                                                                             price
                       ny

                       The
                                                                             Inquiry of the Company's stock price rise,
2020-06-19             Compa     By phone         Individual    Individual
                                                                             property management model
                       ny

                       The
                                                                             Inquiry of the Company's stock price rise
2020-06-19             Compa     By phone         Individual    Individual
                                                                             and the recovery of the inquiry letter
                       ny

                       The
                                                                             Inquiry of the Company's major asset
2020-06-23             Compa     Others           Individual    Individual
                                                                             restructuring plan
                       ny

                       The
                                                                             Inquiry of the Company's real estate
2020-06-24             Compa     Others           Individual    Individual
                                                                             subsidiary
                       ny

                       The
                                                                             Inquiry of the Company's progress of
2020-06-28             Compa     Others           Individual    Individual
                                                                             Bangling project
                       ny

                       The
                                                                             Inquiry of the Company's partial equity
2020-06-29             Compa     Others           Individual    Individual
                                                                             transfer
                       ny

                       The
                                                                             Inquiry of the inventory in the Company's
2020-07-01             Compa     Others           Individual    Individual
                                                                             financial statements
                       ny

                       The
                                                                             Inquiry of the Company's semi-annual
2020-07-01             Compa     Others           Individual    Individual
                                                                             report
                       ny

                       The                                                   Inquiry of the Company's performance in
2020-07-02                       Others           Individual    Individual
                       Compa                                                 the first half of the year


                                                                                                                         43
ShenZhen Properties & Resources Development (Group) Ltd.                                            Annual Report 2020


                       ny

                       The
                                                                          Inquiry of if the Company has applied for a
2020-07-06             Compa     Others         Individual   Individual
                                                                          tax-exempt business license plan
                       ny

                       The
                                                                          Inquiry of the Company's semi-annual
2020-07-06             Compa     By phone       Individual   Individual
                                                                          report
                       ny

                       The
                                                                          Inquiry of the cooperation between the
2020-07-07             Compa     Others         Individual   Individual
                                                                          Company and Shenzhen Duty Free Group
                       ny

                       The
2020-07-15             Compa     Others         Individual   Individual   Inquiry of the Company's property rights
                       ny

                       The
                                                                          Inquiry of major shareholders' shareholding
2020-07-20             Compa     By phone       Individual   Individual
                                                                          reduction
                       ny

                       The
                                                                          Inquiry of the cooperation between the
2020-07-23             Compa     By phone       Individual   Individual
                                                                          Company and Shenzhen Duty Free Group
                       ny

                       The
                                                                          Inquiry of the impact of Sino-U.S. relations
2020-07-24             Compa     Others         Individual   Individual
                                                                          for the Company’s performance
                       ny

                       The
                                                                          Inquiry     of   the    Company's      future
2020-07-27             Compa     Others         Individual   Individual
                                                                          development plans
                       ny

                       The                                                Inquiry of the revitalization project of the
2020-08-10             Compa     Others         Individual   Individual   Renmin South Commercial District in
                       ny                                                 Luohu District is led by the Company

                                                                          Inquiry of the Company whether to
                       The
                                                                          undertake the construction project of the
2020-08-17             Compa     Others         Individual   Individual
                                                                          "Shenzhen Demonstration Pilot Zone” or
                       ny
                                                                          provide property services for it

                       The
                                                                          Inquiry of the reasons for the sharp drop in
2020-08-25             Compa     By phone       Individual   Individual
                                                                          the Company's share price
                       ny

                       The
                                                                          Inquiry of the Company's stock price
2020-08-28             Compa     Others         Individual   Individual
                                                                          changes
                       ny

                       The                                                Inquiry of the progress of the Renmin South
2020-08-31                       Others         Individual   Individual
                       Compa                                              Commercial District renovation plan

                                                                                                                     44
ShenZhen Properties & Resources Development (Group) Ltd.                                            Annual Report 2020


                       ny

                       The
2020-09-07             Compa     Others         Individual   Individual   Inquiry of the progress of Bangling project
                       ny

                       The
                                                                          Inquiry of the cooperation between the
2020-09-14             Compa     Others         Individual   Individual
                                                                          Company and Shenzhen Duty Free Group
                       ny

                       The                                                Inquiry of the Company's land reserves,
2020-10-15             Compa     Others         Individual   Individual   area under construction, and sales of
                       ny                                                 Golden Collar’s Resort project

                       The
                                                                          Inquiry of if the Company has plans to
2020-10-18             Compa     Others         Individual   Individual
                                                                          invest in marine industry clusters
                       ny

                       The
                                                                          Inquiry of the cash flow of the semi-annual
2020-10-20             Compa     Others         Individual   Individual
                                                                          report
                       ny

                       The
                                                                          Inquiry of the Company's future business
2020-10-21             Compa     Others         Individual   Individual
                                                                          plans
                       ny

                       The
                                                                          Inquiry of the Company's third-quarter
2020-10-26             Compa     Others         Individual   Individual
                                                                          report revenue and cash flow
                       ny

                       The
                                                                          Inquiry of number of the Company’s
2020-10-27             Compa     Others         Individual   Individual
                                                                          shareholders
                       ny

                       The
                                                                          Inquiry of the progress of the Bangling
2020-10-28             Compa     Others         Individual   Individual
                                                                          project and Fuchang Building
                       ny

                       The
2020-10-29             Compa     Others         Individual   Individual   Inquiry of the operation of smart park
                       ny

                       The
                                                                          Inquiry of the progress of the Company's
2020-11-20             Compa     Others         Individual   Individual
                                                                          major shareholders' shareholding reduction
                       ny

                       The
                                                                          Inquiry of the reasons for the sharp drop in
2020-11-26             Compa     By phone       Individual   Individual
                                                                          the Company's share price
                       ny

                       The
                                                                          Inquiry of the reasons for the sharp drop in
2020-11-26             Compa     Others         Individual   Individual
                                                                          the Company's share price
                       ny

                                                                                                                        45
ShenZhen Properties & Resources Development (Group) Ltd.                                                    Annual Report 2020


                          The
2020-12-08                Compa        Others            Individual   Individual   Inquiry of the progress of Vietnam project
                          ny

                          The
                                                                                   Inquiry of the Company's cash flow and tax
2020-12-19                Compa        Others            Individual   Individual
                                                                                   expenditures
                          ny

Times of communications                                  90

Number of institutions communicated with                 1

Number of individuals communicated with                  89

Number of other communication parties                    0

Tip-offs     or   leakages        of      substantial
supposedly-confidential    information          during   None
communications




                                                                                                                                46
ShenZhen Properties & Resources Development (Group) Ltd.                                                             Annual Report 2020




                                              Part V Significant Events

I Profit Distributions to Ordinary Shareholders (in the Form of Cash and/or Stock)

How the profit distribution policy, especially the cash dividend policy, for ordinary shareholders was formulated, executed or revised
in the Reporting Period:
□ Applicable √ Not applicable
The profit distributions to ordinary shareholders, either in the form of cash or stock, in the past three years (including the Reporting
Period) are summarized as follows:

           Year                                         Profit distributions (in the form of cash or stock)

            2020             A cash dividend of RMB4.10 (tax included) per 10 shares and no share capital increase from capital
                             reserve
            2019             A cash dividend of RMB3.60 (tax included) per 10 shares and no share capital increase from capital
                             reserve
            2018             A cash dividend of RMB3.00 (tax included) per 10 shares and no share capital increase from capital
                             reserve



Cash dividend for ordinary shareholders in the past three years (including the Reporting Period):
                                                                                                                            Unit: RMB

                                        Net profit
                                      attributable to
                                                                           Cash
                                         ordinary                                                       Total cash
                                                                        dividends
                    Cash              shareholders of                    in other                       dividends
                                                        A as % of         forms       C as % of                           D as % of
    Year        dividends (tax           the listed                                                  (including those
                                                          B (%)          (such as       B (%)                               B (%)
                inclusive) (A)         company in                          share                      in other forms)
                                                                       repurchase
                                       consolidated                                                        (D)
                                                                           ) (C)
                                      statements for
                                       the year (B)

    2020        244,351,427.72         798,572,121.74     30.60%                                      244,351,427.72       30.60%

    2019        214,552,473.12         817,805,780.12     26.24%                                      214,552,473.12       26.24%

    2018        178,793,727.60         698,050,728.96     25.61%                                      178,793,727.60       25.61%

Indicate by tick mark whether the Company fails to put forward a cash dividend proposal for the ordinary shareholders despite the
facts that the Company has made profits in the Reporting Period and the profits of the Company as the parent distributable to the
ordinary shareholders are positive.
□ Applicable √ Not applicable


II Final Dividend Plan for the Reporting Period

√ Applicable □ Not applicable
                                                                                                                                      47
ShenZhen Properties & Resources Development (Group) Ltd.                                                               Annual Report 2020


Bonus shares for every 10 shares (share)                                                                                                   0

Dividend for every 10 shares (RMB) (tax inclusive)                                                                                       4.1

Total shares as the basis for the profit distribution proposal
                                                                                                                                595,979,092
(share)

Cash dividends (RMB) (tax inclusive)                                                                                          244,351,427.72

Cash dividends in other forms (such as share repurchase)
                                                                                                                                        0.00
(RMB)

Total cash dividends (including those in other forms) (RMB)                                                                   244,351,427.72

Distributable profit (RMB)                                                                                                 1,487,964,894.53

Total cash dividends (including those in other forms) as % of
                                                                                                                                      100%
total profit distribution

                                                          Cash dividend policy

If the Company is in a mature development stage and has no plans for any significant expenditure, in profit allocation, the ratio of
cash dividends in the profit allocation shall be 80% or above.

                    Details about the proposal for profit distribution and converting capital reserve into share capital

According to the Company’s Articles of Association as well as the actual situation of its development and operation, the proposal of
the Company for 2020 annual profit distribution is as follows: Based on the total 595,979,092 shares of the Company as at 31
December 2020, a cash dividend of RMB4.1 (tax included) will be distributed to all its shareholders for every 10 shares they hold,
with the total cash dividends to be distributed amounting to RMB244,351,427.72. No capital reserves will be turned into share
capital for 2020.


III Fulfillment of Commitments

1. Commitments of the Company’s Actual Controller, Shareholders, Related Parties and Acquirers, as well
as the Company Itself and other Entities Fulfilled in the Reporting Period or Ongoing at the Period-end

√ Applicable □ Not applicable

                                                                                                          Date of   Term of
                                            Type of
   Commitment               Promisor                               Details of commitment              commitme commitme Fulfillment
                                          commitment
                                                                                                      nt making       nt

                                                           Wholly-owned subsidiary Shenzhen
                                                           Expander and subsidiary holding SPG
 Commitments
                                       Commitments on of Shenzhen Investment Holdings
 made in
                    Shenzhen           horizontal          deal with real estate operation and
 acquisition                                                                                          6
                    Investment         competition,        commercial house sales, which belong                     Three         Normal
 documents or                                                                                         September
                    Holdings Co.,      related-party       to the same industry of the Listed                        years      performance
 shareholding                                                                                         2018
                    Ltd.               transactions and    Company,       and    has     horizontal
 alteration
                                       capital occupation competition with the Listed Company.
 documents
                                                           To    avoid   horizontal    competition,
                                                           Shenzhen Investment Holdings make
                                                                                                                                           48
ShenZhen Properties & Resources Development (Group) Ltd.                                                        Annual Report 2020


                                                         the following commitments1.

                                    Commitments on
                    Shenzhen        horizontal           To reduce and standardize related
                                                                                                  6
                    Investment      competition,         transactions with the Listed Company,                            Normal
                                                                                                  September Long-term
                    Holdings Co.,   related-party        Shenzhen Investment Holdings makes                             performance
                                                                                                  2018
                    Ltd.            transactions and     the following commitments .
                                                                                   2


                                    capital occupation

                                                         Shenzhen Investment Holdings sighed
 Other
                    Shenzhen        Performance          equity transfer contract on 100%
 commitments                                                                                      23
                    Investment      commitment and       equity transfer of TK Property with                  Three       Normal
 made to                                                                                          September
                    Holdings Co.,   compensation         the   Company,   and   the    contract               years     performance
 minority                                                                                         2019
                    Ltd.            arrangement          stipulated relevant commitments on
 shareholders
                                                         performance3.

 Fulfilled on time Yes

Note 1: Wholly-owned subsidiary Shenzhen Expander and subsidiary holding SPG of Shenzhen Investment Holdings deal with real
estate operation and commercial house sales, which belong to the same industry of the Listed Company, and has horizontal
competition with the Listed Company. To avoid horizontal competition, Shenzhen Investment Holdings make the following
commitments: 1. On the horizontal competition solution of Shenzhen Expander: as the holding shareholder of the Listed Company,
during the listing period at Shenzhen Stock Exchange of the Listed Company, as for the current business of Shenzhen Expander
which has horizontal competition with the Listed Company, within the scope permitted by law and regulation, within 12 months from
the equity of SZPRD being transferred to Shenzhen Investment Holdings, Shenzhen Investment Holdings will start the solution with
practical operability among below horizontal competition solution timely and complete implementation of the solution within 3 years
from the date that the equity of SZPRD is transferred to Shenzhen Investment Holdings to solve current horizontal competition
problems: (1) Shenzhen Expander signs asset custody agreement with the Listed Company, entrusts the assets which has direct
competition with the Listed Company to the Listed Company, confirms fair custodian fee at the same time, and takes effective
measures to solve horizontal competition within commitment period; (2) Inject assets with direct competition with the Listed
Company into the Listed Company; (3) Transfer assets with direct competition with the Listed Company to unrelated third party; (4)
other measures which can solve horizontal competition effectively and is favorable for protecting the interest of the Listed Company
and legal interests of other shareholders. Before solving current horizontal competition, while company, enterprise, economic
organization (not including enterprises controlled by the Listed Company, hereinafter referred to as subordinated Companies) which
the Listed Company and Shenzhen Investment Holdings hold controlling shares or controls actually have business, in case the
involved dispute, etc. have major influence on the business, Shenzhen Investment Holdings should keep neutral as a controlling
shareholder to ensure that the Listed Company and subordinated Companies can take part in market competition on the principle of
fair competition.   2. Horizontal competition solution of SPG: From 14 September 2016 to now, SPG has had stock suspension
because of major assets reconstruction. According to Review Opinions on Delaying Stock Resumption because of Major Assets
Reconstruction of SPG announced by CITIC Securities and Huatai Securities on 26 November 2016, the reconstruction solution is
that SPG plans to issue A share and / or use currency to purchase 100% equity of Evergrande Group (hereinafter referred to as “the
reconstruction of SPG”). On 9 November 2020, SPG issued an announcement that the current condition to continue to promote the
major assets reconstruction was not sound yet based on the current market environment and decided to terminate this transaction to
safeguard interests of the Company and all shareholders. After the termination of this transaction, Shenzhen Investment Holdings is
still the controlling shareholder of SPG. For business of SPG which has horizontal competition with the Listed Company, Shenzhen
Investment Holdings, within the scope permitted by law and regulation, Shenzhen Investment Holdings will start a rational horizontal
competition solution according to actual situation at the time within 12 months after the termination of reconstruction of SPG and

                                                                                                                                   49
ShenZhen Properties & Resources Development (Group) Ltd.                                                            Annual Report 2020


stock resumption announcement date, and fulfill announcement obligation, and SPG will complete to implement the solution and
solve the horizontal competition between SZPRD and SPG within 3 years from the date SPG terminates the reconstruction and
announces stock resumption. 3. Other commitments to avoid horizontal competition: as the controlling shareholder of the Listed
Company and during the listing period of the Listed Company at Shenzhen Stock Exchange, other subordinated Companies of
Shenzhen Investment Holdings will not engage in relevant business which has direct horizontal business competition with the Listed
Company in new business fields except for in the business field where it already has had horizontal competition with the Listed
Company. Shenzhen Investment Holdings promises not to seek improper benefits with the position of controlling shareholder of the
Listed Company and damage the interest of the Listed Company and its shareholders. In case of violating above commitment,
Shenzhen Investment Holdings shall undertake corresponding legal liabilities, including but not limited to undertaking compensation
responsibilities for all losses caused to the Listed Company.
On 17 October 2019, the Company received Correspondence on the Progress of Horizontal Competition Solving from controlling
shareholder Shenzhen Investment Holdings. During the commitment period of horizontal competition solving, Shenzhen Investment
Holdings actively fulfilled its relevant commitments, with the details as the following: 1. Shenzhen Investment Holdings is sorting
out the relevant assets and business of Shenzhen Expander, and studying to formulate the solution of horizontal competition. Due to
the long history of Shenzhen Expander and the complicated asset state, relevant solution needs to be further analyzed and
demonstrated. Shenzhen Investment Holdings will active promote relevant work, strives for solve competition problem within
commitment period. 2. The reconstruction of SPG with Evergrande Group is terminated for some reason, Shenzhen Investment
Holdings will start a rational horizontal competition solving solution according to ongoing situation of reconstruction and announce
timely. 3. Within the commitment period, Shenzhen Investment Holdings will not engage in relevant business which has direct
horizontal business competition with SZDRP in new business fields except for in the business field where it already has had
horizontal competition with SZDRP. Shenzhen Investment Holdings does not seek improper benefits with the position of controlling
shareholder of SZPRD and damage the interest of the Listed Company and its shareholders.
Note 2: To reduce and standardize related transactions with the Listed Company, as controlling shareholder of the Listed company
and during the listing period of the Listed Company at Shenzhen Exchange Stock, Shenzhen Investment Holdings promises: 1.
Shenzhen Investment Holdings and its controlling or actually controlled companies, enterprises, economic organizations (not
including enterprises controlled by the Listed Company, hereinafter referred to as the “subordinated companies”) will strictly
exercise the rights of shareholders according to provisions of laws, regulations, and other normative documents, and fulfill the
obligations of shareholders, and keep the independence of the Listed Company in assets, finance, employees, business and agency,
etc. 2. Shenzhen Investment Holdings promises not to use its position of controlling shareholder to promote board of shareholders or
board of directors to make resolutions which may damage the legal interest of the Listed Company or other shareholders; 3.
Shenzhen Investment Holdings and its subordinated companies will try their best to avoid having related transactions with the Listed
Company. In case the transaction with the Listed Company is inevitable, Shenzhen Investment Holdings and its subordinated
companies will have transaction with the Listed Company on the basis of equality and free will, according to fair, rational and normal
commercial transaction conditions, will not require or accept conditions which is more preferential than the Listed Company gives to
the third party in any fair market transactions, and strictly fulfill various related transactions with the Listed Company with good will.
4. Shenzhen Investment Holdings and its subordinated companies will strictly fulfill decision making procedures and relevant
information disclosure obligations of related transactions according to articles of association of the Listed Company and relevant
laws and regulations. 5. Shenzhen Investment Holdings and its subordinated companies will make sure that they will not seek special
interests beyond above stipulations by having related transactions with the Listed Company, will not use related transactions to
illegally transfer funds and profits of the Listed Company and to maliciously damage the legal interests of the Listed Company and
its shareholders. 6. As for current related transaction with the Listed Company, within the scope permitted by laws and regulations,
Shenzhen Investment Holdings promises to confirm rational related transaction solution within 12 months after the Company shares
are transferred to Shenzhen Investment Holdings, and complete to implement the solution within 5 years after the Company shares
are transferred to Shenzhen Investment Holdings, to solve such related transactions completely. The specific forms include: (1) After

                                                                                                                                      50
ShenZhen Properties & Resources Development (Group) Ltd.                                                               Annual Report 2020


current related transaction contract expires, it will not be renewed. In case contract renewal is necessary according to the operation
needs of the Listed Company, it will fulfill relevant decision making procedures strictly according to procedures of related
transactions. (2) Under the precondition of possible realization, terminate contract which is being fulfilled, and adopt marketized and
open bid invitation, etc., inquire again on service items involved in such related transactions to confirm appropriate service provider.
In case related transaction is involved, it should fulfill relevant decision making procedures according to related transaction
procedures. (3) In case there is possibility of price re-negotiation in the related transaction contract which is being fulfilled, conduct
price negotiation again, make the contract amount after re-pricing conform to market price and not higher than the amount of contract
which is being fulfilled, and strictly fulfill relevant decision making procedures according to related transaction procedures.(4) Other
appropriate measures which can reduce and finally eliminate current related transaction but not necessary. 7. In case of violating
above commitments, Shenzhen Investment Holdings shall undertake corresponding legal liabilities, including but not limited to
undertaking compensation liability for all the losses caused to the Listed Company.
Note 3: Shenzhen Investment Holdings sighed equity transfer contract on 100% equity transfer of TK Property with the Company,
and the contract stipulated: 1. Shenzhen Investment Holdings promises that the cumulative net profits (net profit after deducting
extraordinary items) of TK Property from 2019 to 2021 will not be less than 18% of the equity transfer payment amount of this
transaction, i.e. three-year cumulative net profits ≥ equity transfer payment * 18%. The above net profits are subject to the amount
which is confirmed by audited financial report of TK Property. 2. In case three-year cumulative profits of TK Property fails to reach
above promised amount, TP Property shall compensate the insufficient part to the Company in full amount by cash. In case three-year
cumulative profits (net profit after deducting extraordinary items) of TK Property is more than the promised amount, the Company
will not refund. 3. In case Shenzhen Investment Holdings needs to fulfill performance compensation obligation, it shall complete the
performance compensation obligation within 30 days after receiving the compensation notice of the Company, and the specific
delivery method will be agreed by both parties. In case Shenzhen Investment Holdings delays to pay the performance compensation,
it shall pay liquidated damages of 3/10000 of unpaid amount for each day delay. In case of failing to pay for more than 90 days, then
Company has the right to cancel the contract. On 27 November 2019, the Company completed the procedures for registration
changes in industry and commerce regarding 100% equity transfer of Shenzhen Investment Holdings. According to the Equity
Transfer Contract and the audit result on profit or loss of transitional period in the audit report, the final price for this equity transfer
was determined bilaterally as RMB1,027,382,513.56. As of 28 April 2020, the Company had paid off above accounts and the
related-party transaction was formally completed. Above commitments are under normal performance.


2. Where there had been an earnings forecast for an asset or project and the Reporting Period was still
within the forecast period, explain why the forecast has been reached for the Reporting Period.

□Applicable √ Not applicable


IV Occupation of the Company’s Capital by the Controlling Shareholder or Its Related
Parties for Non-Operating Purposes

□ Applicable √ Not applicable
No such cases in the Reporting Period.


V Explanations Given by the Board of Directors, the Supervisory Board and the Independent
Directors (if any) Regarding the Independent Auditor's “Modified Opinion” on the Financial
Statements of the Reporting Period

□Applicable √ Not applicable

                                                                                                                                         51
ShenZhen Properties & Resources Development (Group) Ltd.                                                              Annual Report 2020


VI YoY Changes to Accounting Policies, Estimates and Methods

√ Applicable □ Not applicable
The Company has adopted the provisions of Accounting Standard for Business Enterprises No. 14 –Revenue (CK [2017] No. 22)
since 1 January 2020. According to cumulative effects, the Company adjusted retained earnings at the beginning of the year and other
relevant items in the financial statements, without adjustment of any information of the comparable period. The impact of accounting
policy changes includes:

   Contents of changes in accounting policies and reasons
                                                                          Items and amounts of financial statements affected
                             thereof
Consideration paid by customers before the delivery of goods In the consolidated balance sheet on 1 January 2020, “Advances
is listed as “contract liabilities” in accordance with the newfrom customers” are RMB516,988.76, “Contract liabilities” are
standard for income, and tax included is listed as “other RMB690,543,580.95               and    “Other   current     liabilities”   are
current liabilities”.                                             RMB37,125,462.92;

                                                                   In the balance sheet of the Company as the Parent on 1 January
                                                                   2020, “Advances from customers” are RMB320,469.53, “Contract
                                                                   liabilities” are RMB0.00 and “Other current liabilities” are
                                                                   RMB0.00.

The right to receive consideration for goods or services thatIn the consolidated balance sheet on 1 January 2020, “Contract
have been transferred to customers (which depends on otherassets” are RMB0.00;
factors other than time) is listed as “contract assets” inIn the balance sheet of the Company as the Parent on 1 Januray
accordance with the new standard for income.                       2020, “Contract assets” are RMB0.00.
Incremental cost (such as sales commission) incurred forIn the consolidated balance sheet on 1 January 2020, “Other current
contract acquisition is recognized as an asset as cost ofassets” are RMB0.00 and “Other non-current assets” are RMB0.00;
contract acquisition, and listed as cost of contract acquisition
                                                                   In the balance sheet of the Company as the Parent on 1 Januray
in “other current assets” or “other non-current assets” in
                                                                2020, “Other current assets” are RMB0.00 and “Other non-current
accordance with the new standard for income. However, if the
                                                                assets” are RMB0.00.
amortization of asset is within one year, it can be included in
the current profit and loss when it occurs.
The Company adopts simple treatment method to include sales commission with amortization period within one year in the current
profit and loss when it occurs. The amortization period of sales commission in 2019 is within one year.


VII Retrospective Restatements due to Correction of Material Accounting Errors in the
Reporting Period

□ Applicable √ Not applicable
No such cases in the Reporting Period.


VIII YoY Changes to the Scope of the Consolidated Financial Statements

√ Applicable □ Not applicable
For the detailed changes to the scope of the Company’s consolidated statements of the Reporting Period, see “Part XII Financial
Statements”, VIII.

                                                                                                                                         52
ShenZhen Properties & Resources Development (Group) Ltd.                                                            Annual Report 2020


IX Engagement and Disengagement of Independent Auditor

Current independent auditor:

 Name of the domestic independent auditor                            Baker Tilly China Certified Public Accountants (LLP)

 The Company’s payment to the domestic independent auditor
                                                                     84
 (RMB’0,000)

 How many consecutive years the domestic independent auditor
                                                                     One year
 has provided audit service for the Company

 Names of the certified public accountants from the domestic
                                                                     Li Ming, Chen Zihan
 independent auditor writing signatures on the auditor’s report

 How many consecutive years the certified public accountants
                                                                     One year for Li Ming and one year for Chen Zihan
 have provided audit service for the Company

Indicate by tick mark whether the independent auditor was changed for the Reporting Period.
√ Yes □ No
Indicate by tick mark whether the independent auditor was changed during the audit period.
□ Yes √ No
Indicate by tick mark whether an approval procedure was implemented for the change of independent auditor.
√ Yes □ No
Further details about the change of independent auditor:
Pan-China Certified Public Accountants (LLP) (hereinafter referred to as “Pan-China CPA”) originally hired by the Company
provided the audit service for the Company. Pan-China CPA adhered to the principle of independent audit in the course of practicing,
and reflected the financial status of the Company in an objective, fair and impartial way, earnestly fulfilled their due responsibilities,
and effectively safeguarded the legitimate rights and interests of the Company and its shareholders from a professional perspective.
Based on the demand of business development and future audit of the Company and bilateral communication and negotiation,
Pan-China CPA was no longer the independent auditor of the Company. The Company held the 12th Meeting of the 9th Board of
Directors and the 2019 Annual General Meeting of Shareholders respectively on 7 April 2020 and 28 April 2020 and determined to
hire Baker Tilly China Certified Public Accountants (LLP) as the auditor for the 2020 Financial Statements and internal control of the
Company. The said proposal has been approved both on the board meeting and shareholders meeting.
Independent auditor, financial advisor or sponsor engaged for the audit of internal controls:
√ Applicable □ Not applicable
In this Reporting Period, the Company engaged Baker Tilly China Certified Public Accountants (LLP) for its internal control audit
and paid an internal control audit fee of RMB0.15 million to it for the period.


X Possibility of Delisting after Disclosure of this Report

□ Applicable √ Not applicable


XI Insolvency and Reorganization

□ Applicable √ Not applicable
No such cases in the Reporting Period.

                                                                                                                                       53
ShenZhen Properties & Resources Development (Group) Ltd.                                                                    Annual Report 2020


XII Major Legal Matters

√ Applicable □ Not applicable

                                                                                                                                         Index
                                                                                                                                          to
                         Involved
                                                                                                                             Disclo      discl
       General            amount                                                       Decisions and         Execution of
                                             Provision              Progress                                                    sure     osed
     information       (RMB’0,00                                                          effects            decisions
                                                                                                                                date     infor
                              0)
                                                                                                                                         matio
                                                                                                                                          n

 Litigation matters                                                                       The first
 in disputes over                                                The verdict was       instance judged
 environmental                                                   reached in the           that the
                                                                                                              No need to
 pollution liability      815.4                 Not               first instance         Company
                                                                                                               perform
 of CSCEC and the                                                and the plaintiff      undertook no
 Company (180                                                       appealed           compensation
 cases in total)                                                                         liabilities.

                                            See Part XII          See Part XII          See Part XII         See Part XII
 Summary of other
                          840.62             Financial              Financial             Financial           Financial
 contract disputes
                                            Report-XIV-2          Report-XIV-2         Report-XIV-2          Report-XIV-2


XIII Punishments and Rectifications

□ Applicable √ Not applicable
No such cases in the Reporting Period.


XIV Credit Quality of the Company as well as Its Controlling Shareholder and Actual
Controller

□ Applicable √ Not applicable


XV Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures
for Employees

□ Applicable √ Not applicable
No such cases in the Reporting Period.


XVI Major Related-Party Transactions

1. Continuing Related-Party Transactions

√ Applicable □ Not applicable

 Related     Relati    Type        Specif     Pricin     Trans      Total       As %    Appro         Over   Metho    Obtaina     Disc    Ind

                                                                                                                                                 54
ShenZhen Properties & Resources Development (Group) Ltd.                                                          Annual Report 2020


 party     onshi        of        ic          g   action   value     of        ved      the      d of       ble        losu   ex
          p with   transa    transa      princi   price    (RM      total     transa   appro     settle   market        re    to
            the    ction         ction    ple              B’0,0   value     ction     ved      ment     price for    date   dis
          Comp                                              00)     of all     line    line or            same-ty             clo
           any                                                      same-     (RM       not                  pe               sed
                                                                    type      B’0,0                      transacti           inf
                                                                    transa     00)                          ons               or
                                                                    ctions                                                    mat
                                                                                                                              ion

                   Relate
                   d-part
                        y
          Wholl    transa
Shenzh    y-own    ctions
en Bay    ed       gover     Proper
Technol   subsid    ning          ty     Mark
                                                  Agree
ogy       iary     sales     manag       et                4,787.    4.47
                                                  ment                        3,792       Yes    Cash     4,787.13
Develo    of the        of   ement       princi               13          %
                                                  price
pment     Comp     comm      servic      ple
Co.,      any as   odity          es
Ltd.      the          and
          parent   provi
                    ding
                        of
                   labors

                   Relate
                   d-part
                   y
          Wholl    transa
Shenzh    y-own    ctions
en Bay    ed       gover
                             Mana
Technol   subsid   ning                  Mark
                             gemen                Agree
ogy       iary     purch                 et                6,460.    7.08
                             t                    ment                        6,692     Not      Cash     6,460.99
Develo    of the   ase of                princi               99          %
                             servic               price
pment     Comp     comm                  ple
                             es
Co.,      any as   odity
Ltd.      the      and
          parent   provi
                   ding
                   of
                   labors

Shenzh    Wholl              Entrus      Mark     Agree    4,834.   34.79
                   Lease                                                      6,080       Not    Cash     4834.13
en        y-own                  ted     et       ment        13          %

                                                                                                                                    55
ShenZhen Properties & Resources Development (Group) Ltd.                                                                      Annual Report 2020


 Shento        ed                   manag      princi     price
 u Real        subsid                ement     ple
 Estate        iary                  servic
 Develo        of the                es of
 pment         Comp                  house
 Co.,Ltd       any as                  s
 .             the
               parent

                                                                        16,08               16,56
 Total                                           --             --                --                 --       --         --         --         --
                                                                         2.25                  4

 Large-amount sales return in detail           N/A

 Give the actual situation in the
                                               The total amount of daily related-party transactions of the Company in 2020 is expected
 Reporting Period (if any) where an
                                               to be RMB168.87 million, and actual total amount of daily related-party transactions is
 estimate had been made for the total
                                               RMB170.39 million. The excess amount is lower than the disclosure standard. For
 value of continuing related-party
                                               details, please refer to the Proposal on Daily-Related Party Transactions in 2021 disclosed
 transactions by type to occur in the
                                               on the same day of this report.
 Reporting Period

 Reason        for      any      significant
 difference between the transaction
                                               N/A
 price and the market reference price
 (if applicable)


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. Credits and Liabilities with Related Parties

√Applicable □ Not applicable
Indicate by tick mark whether there were any credits and liabilities with related parties for non-operating purposes.
√ Yes □ No
Receivable from related parties

                                                      Capital        Beginning   Amount         Amount                               Ending
                    Relationship                                                  newly       received in              Current
     Related                                         occupati         balance    added in       current     Intere     interest      balance
                      with the        Reason
      party                                           on for         (RMB’0,0    current        period     st rate   (RMB’0,      (RMB’0,0
                      Company                                                     period      (RMB’0,00                 000)
                                                     non-ope            00)      (RMB’0           0)                                    00)

                                                                                                                                                    56
ShenZhen Properties & Resources Development (Group) Ltd.                                                                  Annual Report 2020


                                                        rating                      ,000)

                                                       purpose
                                                          s
                                                       (yes/no)

                 The parent
                 company of
                 the
                                      Business
                 subsidiary
 Shenzhen                             circulating
                 Rongyao
 Xinhai                               funds
                 Real                               No                    55,150                  15,000                           40,150
 Holdings                             before
                 Estate’s
 Co., Ltd.                            acquisitio
                 minority
                                      n
                 shareholder
                 Xinhai
                 Rongyao

 Shenzhen
 Xinhai          Minority             Business
 Rongyao         shareholder          circulating
 Real            of the               funds
                                                    No               33,047.29                                                  33,047.29
 Estate          subsidiary           before
 Developm        Rongyao              acquisitio
 ent Co.,        Real Estate          n
 Ltd.

 Influence         on           the
 Company’s             operating     All were within the risks control of the Company and not influenced the operating results and the
 results     and        financial     financial conditions.
 condition

Liabilities payable to related parties
                                                                                              Amount
                                                                               Amount
                                                          Beginning                         returned in             Current
                          Relation                                           newly added                   Inter                 Ending
                                          Formation        balance                            current               interest
   Related party          with the                                            in current                     est                 balance
                                           reason         (RMB’0,0                            period              (RMB’0,0
                          Company                                               period                      rate               (RMB’0,00
                                                             00)                            (RMB’0,00                00)
                                                                            (RMB’0,000)                                            0)
                                                                                                 0)
 Shenzhen        Jifa
                          Joint vent      Intercours
 Warehouse Co.,                                               3,579.67                                                           3,579.67
                          ure             e funds
 Ltd.

 Shenzhen
 Tian’an
 International
                          Joint vent      Intercours
 Building                                                        521.43                                                            521.43
                          ure             e funds
 Property
 Management
 Co., Ltd.

                                                                                                                                            57
ShenZhen Properties & Resources Development (Group) Ltd.                                                         Annual Report 2020


 Influence on the Company’s
                                    All were within the risks control of the Company and not influenced the operating results and
 operating results and financial
                                    the financial conditions.
 condition


5. Other Major Related-Party Transactions

√Applicable □ Not applicable
1. On September 6 and 23, 2019, the Company held the eighth meeting of the ninth session of the Board of Directors and the 2019
second extraordinary general meeting of shareholders respectively to review and pass the Proposal on Acquisition of 100% of Equity
Interests in TK Property and Related-party Transaction. The Company purchased 100% equity of TK Property held by Shenzhen
Investment Holdings Co., Ltd., the controlling shareholder of TK Property, in the form of cash payment. On November 27, 2019, the
Company completed the industrial and commercial registration procedures for the transfer of 100% equity interests of TK Property.
According to the agreement on Equity Interest Transfer Contract and audit report on the profit and loss of the transition period, both
parties confirmed that the final price of equity interests transfer was RMB 1,027,382,513.56. As of April 28, 2020, the Company has
paid the above amount, and completed the related-party transaction. For details, please refer to the Announcement on Acquisition of
100% of Equity Interests in TK Property and Related-party Transaction published on www.cninfo.com.cn on April 28, 2020.
2. On December 28, 2020, the Company held the 21st meeting of the ninth session of Board of Directors to review and pass the
Proposal on Signing the Property Management Service Contract with An Duong Industrial Park of Haiphong, Vietnam and
Related-Party Transaction. VCEP entrusted ITC Property Management to provide property management services to An Duong
Industrial Park located in Hongfeng Township, An Duong Town, Haiphong City, Vietnam, with a service area of 1.961 million square
meters of industrial park (including administrative office and dormitory buildings). VCEP, a wholly-owned subsidiary of Shenzhen
Investment Holdings, the controlling shareholder of the Company, is a related party of the Company, and this transaction constituted
a related-party transaction. For details, please refer to the Announcement on Signing the Property Management Service Contract with
An Duong Industrial Park of Haiphong, Vietnam and Related-Party Transaction published on www.cninfo.com on December 28,
2020.


XVII Major Contracts and Execution thereof

1. Entrustment, Contracting and Leases

(1) Entrustment

√Applicable □ Not applicable
Description of trusteeship situation:
The Company signed the Agreement for Engagement in Assisted Management with its controlling shareholder Shenzhen Investment
Holdings Co., Ltd. (SIHC) on 1 March 2020. According to the Agreement, the Company was appointed to exercise assisted
management over China Shenzhen Foreign Trade (Group) Co., Ltd., a wholly-owned subsidiary of SIHC. The assisted management
period would be six months, from 1 March 2020 to 31 August 2020. For the specific content, please refer to the Company’s Voluntary
Information Disclosure Announcement on the Agreement for Engagement in Assisted Management Signed with the Controlling
Shareholder, No. 2020-5, disclosed on http://www.cninfo.com.cn on 3 March 2020.
Projects whose profits and losses for the Company reached more than 10% of the total profits during the Reporting Period:
□ Applicable √ Not applicable
No such cases in the Reporting Period.

                                                                                                                                  58
ShenZhen Properties & Resources Development (Group) Ltd.                                                            Annual Report 2020


(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


(1) Guarantees

                                                                                                                         Unit: RMB'0,000

   Guarantees provided by the Company as the parent and its subsidiaries for external parties (exclusive of those for subsidiaries)

                             Disclosure                                                                                        Guaran
                             date of the                                                                                       tee for
                                                           Actual           Actual      Type of                     Having
                              guarantee     Line of                                                       Term of                 a
        Obligor                                          occurrence        guarantee    guarante                    expired
                                line       guarantee                                                  guarantee                related
                                                              date          amount          e                       or not
                             announcem                                                                                          party
                                 ent                                                                                           or not

                                           Guarantees provided by the Company for its subsidiaries

                             Disclosure                                                                                        Guaran
                             date of the                                                                                       tee for
                                                           Actual           Actual      Type of                     Having
                              guarantee     Line of                                                       Term of                 a
        Obligor                                          occurrence        guarantee    guarante                    expired
                                line       guarantee                                                  guarantee                related
                                                              date          amount          e                       or not
                             announcem                                                                                          party
                                 ent                                                                                           or not

 Shenzhen                                                                                            27
 Rongyao          Real                                                                               November
                             18 October                27 November                      Joint-lia
 Estate                                     500,000                          299,980                 2019 to 20     No         Yes
                             2019                      2019                             bility
 Development Co.,                                                                                    November
 Ltd.                                                                                                2024

 Total approved line for such                                             Total actual amount of
 guarantees       in   the    Reporting                               0   such guarantees in the                               80,700
 Period (B1)                                                              Reporting Period (B2)

 Total approved line for such                                             Total actual balance of
 guarantees at the end of the                                  500,000    such guarantees at the                              299,980
 Reporting Period (B3)                                                    end of the Reporting

                                                                                                                                         59
ShenZhen Properties & Resources Development (Group) Ltd.                                                          Annual Report 2020


                                                                       Period (B4)

                                                Guarantees provided between subsidiaries

                         Disclosure                                                                                         Guaran
                         date of the                                                                                        tee for
                                                         Actual           Actual          Type of                 Having
                         guarantee        Line of                                                     Term of                  a
       Obligor                                         occurrence       guarantee     guarante                    expired
                            line        guarantee                                                     guarantee             related
                                                           date          amount             e                     or not
                         announcem                                                                                          party or
                            ent                                                                                               not

                                   Total guarantee amount (total of the three kinds of guarantees above)

                                                                       Total actual guarantee
 Total guarantee line approved in
                                                                       amount        in         the
 the         Reporting       Period                                                                                          80,700
                                                                       Reporting           Period
 (A1+B1+C1)
                                                                       (A2+B2+C2)

                                                                       Total actual guarantee
 Total approved guarantee line at
                                                                       balance at the end of
 the end of the Reporting Period                            500,000                                                         299,980
                                                                       the Reporting Period
 (A3+B3+C3)
                                                                       (A4+B4+C4)

 Total actual guarantee amount (A4+B4+C4) as % of the
                                                                                                                            80.47%
 Company’s net assets

 Of which:

 Balance of guarantees provided for shareholders, actual
                                                                                                                                    0
 controller and their related parties (D)

 Balance of debt guarantees provided directly or indirectly for
                                                                                                                            299,980
 obligors with an over 70% debt/asset ratio (E)

 Amount by which the total guarantee amount exceeds 50% of
                                                                                                                            113,584
 the Company’s net assets (F)

 Total of the three amounts above (D+E+F)                                                                                   299,980

Compound guarantees:
Naught


(2) Irregularities in Provision of Guarantees

□ Applicable √ Not applicable
No such cases in the Reporting Period.


3. Cash Entrusted to Other Entities for Management

(1) Cash Entrusted for Wealth Management

□ Applicable √ Not applicable
No such cases in the Reporting Period.
                                                                                                                                      60
ShenZhen Properties & Resources Development (Group) Ltd.                                                             Annual Report 2020


(2) Entrusted Loans

□ Applicable √ Not applicable
No such cases in the Reporting Period.


4. Continuing Major Contracts

□ Applicable √ Not applicable


5. Other Major Contracts

□ Applicable √ Not applicable
No such cases in the Reporting Period.


XVIII Corporate Social Responsibility (CSR)

1. Measures Taken to Fulfill CSR Commitment

Since its inception, SZPRD has been adhering to the concept of honesty, responsibility and win-win cooperation for the benefit of
society. The Company actively fulfills its social responsibilities and always takes repaying the society as an important development
concept. It actively fulfills its statutory social responsibilities and ethical social obligations, and unifies the realization of economic
and social benefits to create an excellent corporate image. The Company carried out the following activities to perform its social
responsibility in 2020:
(1) Carry forward the spirit of reform and opening-up, create a building brand with CCP characteristics
To maximize the historical value of International Trade Center Building, and inherit and carry forward the spirit of reform and
opening-up, SZPRD started the preparation of history exhibition in Shenzhen International Trade Center in early 2019 to create a red
tour route on the basis of functioning as on-site teaching center of Shenzhen Party School on reform and opening up. The exhibition
was completed at the end of August 2020 and launched on September 1.
The exhibition in Shenzhen International Trade Center truly presented the building in the 1980s, which was famous for the
“Shenzhen Speed” that “one floor was completed in three days”, and reproduced the important historical scene of Deng Xiaoping's
Talks in the South. The exhibition consists of six parts to show the scenes of Deng Xiaoping, Jiang Zemin, Hu Jintao and other
leader’s visit to Shenzhen International Trade Center and reform and opening up of Shenzhen Special Economic Zone, including the
Preface Hall (Leaders’ care), Shenzhen Speed, Talks in the South, Historical Moment, Video stories and Enterprise Development,
which display precious historical materials to show “Shenzhen story” and the spirit of “venture, courage and work hard” of Shenzhen
Special Zone.
SZPRD created a red education route in International Trade Center to innovate and promote the building work with CCP
characteristics, and strengthen the construction of Party Member Service Center to share with government departments, streets and
communities, and provide a learning platform and rich teaching materials to SZPRD internal staff, Party members and the public.
Since its opening, the exhibition hall has received 147 interviews of People.cn, Xuexi.cn and other media, who made 114 reports, and
visits of 2755 person-time, including important receptions of leaders of the Organization Department of the CPC Central Committee,
Guangdong Provincial Government and Shenzhen Municipal Government. The building with CCP characteristics built by SZPRD is
recognized by Shenzhen municipal and Luohu district departments. It has become an important part of red education resources in
Shenzhen, being listed as a red route visiting spot by the Organization Department of the Municipal Party Committee and education
site on reform and opening up of the Party School.

                                                                                                                                       61
ShenZhen Properties & Resources Development (Group) Ltd.                                                           Annual Report 2020


SZPRD held the exhibition on reform and opening up to revitalize and reshape the cultural image and business atmosphere of
International Trade Center for the landing of duty-free town in Guangdong-Hong Kong-Macao Greater Bay Area to promote the
revitalization of Renmin South Business District of Luohu.
(2) Carry out blood donation, create projects with CCP characteristics on the principals of “projects led by the Secretary,
brands created by branches, achievements made by Party members”
To celebrate the 99th anniversary of the founding of CCP, consolidate the educational achievements of the theme of “remain true to
our original aspiration and keep our mission firmly in mind”, on 1 July, the party committee of Shenzhen International Trade Center
Property Management Co., Ltd. subordinated to SZPRD together with the Jiabei Community Station of Nanhu Sub-district in Luohu
District and International Trade Center Sub-branch of Shenzhen Branch of Bank of China held the activity of “Red Banner & Red
Action” Voluntary Blood Donation, attracting a total of 115 people to voluntarily donate their blood on the day with the total amount
of blood donation 41,950 ml.
Since 2011, the party committee of Shenzhen International Trade Center Property Management Co., Ltd. has insisted on carrying out
the theme activity for public benefits of “Red Banner & Red Action” to commemorate the party’s birthday every year, allowing party
member volunteers to play an exemplary role. Fortunately, the activity has attracted the active response from the owners and tenants
of ITC Building, various party organizations in the southern business district and Jiabei Community station and people from all walks
of life, and become a unique party building activity featuring “the secretary controls the activity, the party branch creates the brand,
and the party members strive for becoming the vanguard”. This activity has been held for consecutive nine years. In terms of this
activity, more than 700 people have donated their blood voluntarily with the total unpaid blood donation volume nearly 270,000 ml.
In addition, to support Shenzhen blood bank to meet the urgent demand after the outbreak of the epidemic this year and carry forward
the voluntary service spirit of “dedication, fraternal love, mutual aid and progress”, the Youth League Committee of SZPRD
organized and carried out the public welfare activity of “Fraternal Love, TK’s Support in People’s Livelihood” for blood donation
from March 24 to 25. About 110 Youth League members from Youth League Committees of TK Property, and Youth League
branches of Huangcheng Real Estate and Huangcheng Property Management, which are affiliated to the Youth League Committee of
the Group, participated in blood donation and donated 43400ml blood in total. Grass-roots Youth League members supported the
epidemic prevention and control voluntarily to respond to the activity of “show your party member identities in epidemic prevention
and build brands with love” held by the Group, fully demonstrating the actions of the new era youth fresh troops and commandos of
Shenzhen property group, and make great contributions to the promotion of urban civilization in Shenzhen and epidemic prevention
and control.
(3) Donate RMB2 Million to support epidemic prevention and control, exempt small and medium-sized enterprises from
payment of rent approximating RMB38 Million
After the outbreak of COVID-19 epidemic in 2020, residential quarters, office buildings and industrial parks managed by property
management enterprises of the Group worked hard on epidemic prevention and control and work resumption. Leaders and staff of
property management enterprises made great contributions to epidemic prevention and control and recognized by the society and
property owners. In March 2020, the Group donated RMB2 million to support Hubei and Wuhan to tackle the epidemic, including
RMB50 thousand donated by Party members.
To implement the policies and requirements of the Municipal Party Committee, Municipal Government and Municipal State-owned
Assets Supervision and Administration Commission (SASAC) on tackling the epidemic and supporting enterprises to tide over the
difficulties, SZPRD acted quickly to implement property rent reduction policy to support private enterprises to relieve operation
difficulties.
In March 2020, SZPRD exempted non-state-owned enterprises, scientific research institutions, medical institutions and individual
businesses from payment of two months’ rent in three stages. Based on the policy of moderate leniency, the Group also included
natural persons who rent properties for production and operation in the scope of two months’ rent exemption, covering office
buildings, shops, factories, supporting service facilities and other properties with an area of about 310,000m2, which accounted for
about 83% of the Company’s total areas for lease, benefiting 447 leasees and 700 companies by rent reduction of RMB24.88 million
                                                                                                                              62
ShenZhen Properties & Resources Development (Group) Ltd.                                                         Annual Report 2020


in total.
In August 2020, to respond to the requirements of the Municipal Government and SASAC on alleviation rent pressure of small and
micro enterprises in the service industry and individual business, SZPRD extended the rent exemption period of state-owned property
for one month, which involved a property area of about 270,000m2, benefiting 584 leasees by rent reduction of approximating
RMB13 million. So far, SZPRD exempted rent payment approximating RMB38 million in total.
(4) Carry out poverty alleviation work
The Group carried out pro-consumption activities to aid poverty alleviation, and purchased agricultural and side-line products
totalled RMB865,432 from poor areas online.
Meanwhile, Huangcheng Real Estate Co., Ltd. of the Group supported targeted poverty alleviation and elimination, and made a
targeted donation of RMB10,000 to Mulam Nationality in Luocheng.
(5) Care for employees, take on social responsibility
To implement the Group’s assistance mechanism, SZPRD Party Committee carried out activities before the Spring Festival to express
care for employees with difficulties on January 17. Liu Shengxiang, Secretary of the Party Committee and Chairman of the Group,
Wang Hangjun, Deputy Secretary of the Party committee and General Manager of the Group, Wei Xiaodong, Deputy secretary of the
Party Committee and Secretary of the Discipline Inspection Commission visited employee families in difficulties and sent gifts and
consolation money to express care and greetings on behalf of the Group.
To celebrate the 99th anniversary of the founding of the CCP and implement the inner-party incentive, care and assistance
mechanism, SZPRD Party Committee carried out “July 1st conversations” to express care to Party members in difficulties in the
morning of August 3. To help party members in need in an effective way, the Party Committee and Party branches of the Group
conducted an in-depth investigation on family life of party members and determined member families to visit.
(6) Social honors
In 2020, Housing and Urban-Rural Development of Shandong Province announced the list of outstanding enterprises in the property
service industry in Shandong Province. Shandong Shenguomao Real Estate Management of SZPRD was awarded the title of
“Provincial Model Enterprise for Civilization of the Property Management Service Industry”, and Zhang Ning, employee of the
Company, was awarded the title of “Provincial Service Star for Civilization of the Property Management Service Industry”.
On May 13, China Index Academy released the list of China’s Top 100 Property Management Service Enterprises 2020. ITC
Property Management of SZPRD was awarded the title of “China’s Top 100 Property Management Service Enterprises 2020” and
“China’s Excellent Enterprises in Industrial Park Service 2020” by virtue of continuous improvement of internal control, property
management quality and service products meeting customers’ needs. ITC Property Management ranked 27th in the top 100 property
management service companies. It is the fifth consecutive year that ITC Property Management won this honor.
At the 10th Grand Ceremony hosted by Shenzhen Real Estate Association on August 28, SZPRD was awarded the title of “enterprise
with brand value” in Shenzhen real estate development industry. Wang Hangjun, General Manager of the Group, was awarded the
title of “40 Outstanding Persons of Real Estate Industry in Shenzhen Special Economic Zone”.


2. Measures Taken for Targeted Poverty Alleviation

The Company didn’t take any targeted measures to help people lift themselves out of poverty during the Reporting Period, no
targeted poverty alleviation plan temporarily too.


3. Issues Related to Environmental Protection

Indicate by tick mark whether the Company or any of its subsidiaries is identified as a major polluter by the environmental protection
authorities.
□ Yes √ No

                                                                                                                                   63
ShenZhen Properties & Resources Development (Group) Ltd.   Annual Report 2020


XIX Other Significant Events
□ Applicable √ Not applicable
No such cases in the Reporting Period.


XX Significant Events of Subsidiaries

□ Applicable √ Not applicable




                                                                          64
ShenZhen Properties & Resources Development (Group) Ltd.                                                          Annual Report 2020




                  Part VI Share Changes and Shareholder Information

I. Share Changes

1. Share Changes

                                                                                                                               Unit: share

                                     Before                Increase/decrease in the Reporting Period (+/-)             After

                                                                Shares     Shares
                                                                  as          as
                                                                dividen dividend
                                              Percenta New                                                                     Percentag
                                 Shares                           d        converte    Other       Subtotal       Shares
                                              ge (%)   issues                                                                    e (%)
                                                                convert d from
                                                                ed from capital
                                                                 profit reserves

 I.   Restricted shares          1,931,280     0.33%        0          0           0    -32,974       -32,974     1,898,306        0.32%

 1. Shares held by State                  0    0.00%        0          0           0           0              0            0       0.00%

 2. Shares held by
                                          0    0.00%        0          0           0      3,326         3,326        3,326         0.00%
 state-owned legal person

 3. Shares held by other
                                 1,931,280     0.33%        0          0           0    -36,300       -36,300     1,894,980        0.32%
 domestic investors

 Among       which:   Shares
 held by domestic legal          1,894,980     0.32%        0          0           0           0              0   1,894,980        0.32%
 person

 Shares held by domestic
                                   36,300      0.01%        0          0           0    -36,300       -36,300              0       0.00%
 natural person

 4. Shares held by other
                                          0    0.00%        0          0           0           0              0            0       0.00%
 foreign investors

 II. Unrestricted shares       594,047,812 99.67%           0          0           0     32,974        32,974 594,080,786         99.68%

 1. RMB common shares          526,442,569 88.33%           0          0           0     32,974        32,974 526,475,543         88.34%

 2. Domestically listed
                                67,605,243 11.34%           0          0           0           0              0 67,605,243        11.34%
 foreign shares

 3. Overseas listed foreign
                                          0    0.00%        0          0           0           0              0            0       0.00%
 shares

 4. Others                                0    0.00%        0          0           0           0              0            0       0.00%

 III. Total shares             595,979,092 100.00%          0          0           0           0              0 595,979,092 100.00%



Reasons for share changes:
                                                                                                                                         65
ShenZhen Properties & Resources Development (Group) Ltd.                                                             Annual Report 2020


√ Applicable □ Not applicable
On 16 January 2020, the shareholder with restricted public shares of the Company Han Yihua repaid the advanced shares for share
reform of 3,326 to the Company’s controlling shareholder Shenzhen Investment Holdings and transferred the share ownership to the
latter. On 30 April 2020, all 32,974 restricted shares held by Han Yihua were desterilized and officially circulated in the market.
Approval of share changes:
√ Applicable □ Not applicable
Above-mentioned desterilization of non-tradable shares has been approved by Shenzhen Stock Exchange and completed the change
registration in Shenzhen Branch of China Securities Depository and Clearing Corporation Limited.
Transfer of share ownership:
□ Applicable √ Not applicable
Progress on any share repurchases:
□ 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 ordinary
shareholders 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
On January 29, 2021, the Company disclosed the Announcement of Shenzhen Properties & Resources Development (Group) Ltd. on
the Transfer of Some State-owned Shares Held by Controlling Shareholders to Social Security Fund without Compensation. The
controlling shareholders of the Company decided to transfer 38037, 890 unrestricted common A shares of the Company to Shenzhen
State-owned Equity Management Co., Ltd. for the purpose of replenishing social security fund. On March 15, the transfer procedures
of state-owned shares without Compensation were completed by China Securities Depository and Clearing Corporation Limited.
After the transfer, Shenzhen Investment Holdings holds 301,414,637 shares of the Company, accounting for 50.575% of the total
share capital, and Shenzhen State-owned Equity Management Co., Ltd. holds 38,037,890 shares of the Company, accounting for
6.382% of the total share capital. Shenzhen State-owned Equity Management became the second largest shareholder of the Company.


2. Changes in Restricted Shares

√ Applicable □ Not applicable
                                                                                                                              Unit: share

                         Number of          Number of          Number of          Number of
                                                                                                                          Date of
      Name of            restricted          increased          released           restricted          Reason for
                                                                                                                         restriction
    shareholders        shares at the        restricted         restricted        shares at the        restriction
                                                                                                                          release
                        period-begin          shares             shares           period-end

                                                                                                      Share reform
 Han Yihua                        36,300                  0           32,974                      0                  30 April 2020
                                                                                                      commitments

 Shenzhen                                                                                             Repayment
 Investment                             0           3,326                    0            3,326       of advance     -
 Holdings Co.,                                                                                        shares for


                                                                                                                                       66
ShenZhen Properties & Resources Development (Group) Ltd.                                                                             Annual Report 2020


 Ltd.                                                                                                              stock reform

 Total                            36,300                 3,326               32,974                    3,326            --                       --


II. Issuance and Listing of Securities

1. Securities (Exclusive of Preferred Shares) Issued in the Reporting Period

□ Applicable √ Not applicable


2. Changes to Total Shares, Shareholder Structure and Asset and Liability Structures

□ Applicable √ Not applicable


3. Existing Staff-Held Shares

□ Applicable √ Not applicable


III Shareholders and Actual Controller

1. Shareholders and Their Shareholdings at the Period-End



                                                                                                                                                  Unit: share

                                                                                                                        Number             of
                                     Number              of                                                             preferred
                                     ordinary                                Number               of                    shareholders
 Number         of                   shareholders        at                  preferred                                  with        resumed
 ordinary              52,587        the      month-end          54,313      shareholders       with           0        voting rights at                0
 shareholders                        prior        to    the                  resumed        voting                      the       month-end
                                     disclosure of this                      rights (if any)                            prior      to      the
                                     Report                                                                             disclosure of this
                                                                                                                        Report (if any)
                                               5% or greater shareholders or top 10 shareholders

                                           Sharehol                   Increase/dec                                            Shares in pledge or frozen
                                                       Total shares                   Restricted
         Name of         Nature of           ding                     rease in the                      Unrestricted
                                                       held at the                       shares
     shareholder        shareholder        percenta                    Reporting                         shares held              Status              Shares
                                                       period-end                        held
                                             ge                           Period

 Shenzhen
                      State-owned
 Investment                                 56.96% 339,452,527 -40,926,370                 3,326           339,449,201
                      legal person
 Holdings Co., Ltd.
 China Orient Asset
                      State-owned
 Management Co.,                             4.99%      29,798,300     29,798,300                 0            29,798,300
                      legal person
 Ltd.

                                                                                                                                                               67
ShenZhen Properties & Resources Development (Group) Ltd.                                                                   Annual Report 2020


Hong Kong
                         Foreign legal
Securities Clearing                           0.31%      1,874,823     1,874,823               0      1,874,823
                         person
Company Ltd.

Shenzhen
                         Domestic
Duty-Free
                         non-state-own
Commodity                                     0.29%      1,730,300              0 1,730,300                     0
                         ed legal
Enterprises       Co.,
                         person
Ltd.

                         Domestic
Duan Shaoteng                                 0.27%      1,618,565       550,865               0      1,618,565
                         natural person

                         Domestic
Yang Yaochu                                   0.25%      1,500,384        75,364               0      1,500,384
                         natural person

                         Domestic
Mai Furong                                    0.18%      1,049,200      -132,300               0      1,049,200
                         natural person

                         Foreign legal
UBS AG                                        0.17%      1,036,938     1,036,938               0      1,036,938
                         person
                         Domestic
He Simo                                       0.17%      1,011,750       249,100               0      1,011,750
                         natural person
China Construction
Bank-Wanjia
Selected Mixed           Other                0.16%        982,300       982,300               0           982,300
Type Securities
Investment Fund
Strategic investor or general legal
person becoming a top-10 ordinary
                                            N/A
shareholder due to rights issue (if
any)

                                            The first largest shareholder, Shenzhen Investment Holdings Co., Ltd., is the actual controlling
Related or acting-in-concert parties
                                            shareholder of the Company. And the Company does not know whether there are related parties
among the shareholders above
                                            or acting-in-concert parties among the other 9 shareholders.

                                                          Top 10 unrestricted shareholders

                                                                                                                   Shares by type
       Name of shareholder                        Unrestricted shares held at the period-end
                                                                                                            Type                    Shares

Shenzhen      Investment         Holdings
                                                                                    339,449,201 RMB common share                    339,449,201
Co., Ltd.
China Orient Asset Management
                                                                                     29,798,300 RMB common share                     29,798,300
Co., Ltd.
Hong Kong Securities Clearing
                                                                                       1,874,823 RMB common share                     1,874,823
Company Ltd.
Duan Shaoteng                                                                          1,618,565 RMB common share                     1,618,565

Yang Yaochu                                                                            1,500,384 Domestically listed                  1,500,384

                                                                                                                                             68
ShenZhen Properties & Resources Development (Group) Ltd.                                                              Annual Report 2020


                                                                                            foreign share

                                                                                            Domestically listed
 Mai Furong                                                                     1,049,200                                        1,049,200
                                                                                            foreign share

 UBS AG                                                                         1,036,938 RMB common share                       1,036,938

                                                                                            Domestically listed
 He Simo                                                                        1,011,750                                        1,011,750
                                                                                            foreign share
 China Construction Bank-Wanjia
 Selected Mixed Type Securities                                                   982,300 RMB common share                        982,300
 Investment Fund
 Shenzhen Junhao Trading Co., Ltd.                                                831,200 RMB common share                        831,200

 Related or acting-in-concert parties among top 10 The first largest shareholder, Shenzhen Investment Holding Corporation,
 unrestricted public shareholders, as well as between top is the actual controlling shareholder of the Company. And the Company
 10 unrestricted public shareholders and top 10 does not know whether there are related parties or acting-in-concert
 shareholders                                              parties among the other 9 shareholders.

 Top 10 ordinary shareholders involved in securities
                                                           N/A
 margin trading (if any)

Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the
Company conducted any promissory repo during the Reporting Period.
□ Yes √ No
No such cases in the Reporting Period.


2. Controlling Shareholder

Nature of the controlling shareholder: Controlled by a local state-owned legal person
Type of the controlling shareholder: legal person

                                         Legal
     Name of controlling                                      Date of           Unified social credit
                                  representative/pers                                                             Principal activity
          shareholder                                      establishment                code
                                     on in charge

                                                                                                            To execute investments
                                                                                                            and M&A on financial
                                                                                                            equity such as banks,
                                                                                                            securities,      insurance,
                                                                                                            funds and guarantees and
                                                                                                            pseudo-banking       equity;
 Shenzhen          Investment
                                 Wang Yongjian          13 October 2004        914403007675664218           to engage in the property
 Holdings Co., Ltd.
                                                                                                            development                and
                                                                                                            operation business within
                                                                                                            the    scale    of   legally
                                                                                                            acquire the land use right;
                                                                                                            to execute investments
                                                                                                            and services in strategic

                                                                                                                                         69
ShenZhen Properties & Resources Development (Group) Ltd.                                                          Annual Report 2020


                                                                                                       emerging       industry;           to
                                                                                                       execute the investment,
                                                                                                       operating                         and
                                                                                                       management            of          the
                                                                                                       state-owned equities of
                                                                                                       the          wholly-owned,
                                                                                                       controlling                       and
                                                                                                       stock-participating
                                                                                                       enterprises through the
                                                                                                       methods       such      as        the
                                                                                                       restructuring integration,
                                                                                                       capital     operation             and
                                                                                                       assets     disposal;         other
                                                                                                       business developed with
                                                                                                       the authority from the
                                                                                                       Municipal       State-owned
                                                                                                       Assets Supervision and
                                                                                                       Administration
                                                                                                       Commission            (if         the
                                                                                                       activity needs approval as
                                                                                                       required        by               state
                                                                                                       regulations, it shall not be
                                                                                                       operated      until         it      is
                                                                                                       approved).

                                  Shenzhen Textile A (000045) holds 234.07 million shares, accounting for 46.10%; SPG A
                                  (000029) holds 642.88 million shares, accounting for 63.55%; Shenzhen Universe A (000023)
                                  holds 9.59 million shares, accounting for 6.91%; Ping’an (601318) holds 962.72 million shares,
                                  accounting for 5.27%; Guosen Securities (002736) holds 3,223.11 million shares, accounting for
                                  33.53%; Guotai Jun’an (601211) holds 609.43 million A-shares and 103.37 million H-shares,
 Shareholdings of the
                                  totally accounting for 8.00%; Telling Telecommunication (000829) holds 195.03 million shares,
 controlling shareholder in
                                  accounting for 18.89%; Shenzhen International (00152) holds 952.01 million shares, accounting
 other listed companies at
                                  for 43.39%; Beauty Star (002243) holds 604.82 million shares, accounting for 49.96%; Bay Area
 home or abroad in this
                                  Development (00737) holds 2,213.45 million shares, accounting for 71.83%; Infinova (002528)
 Reporting Period
                                  holds 315.83 million shares, accounting for 26.35%; Eternal Asia (002183) holds 388.45 million
                                  shares, accounting for 18.30%; Shenzhen Energy (000027) holds 6.77 million shares, accounting
                                  for 0.14%; Bank of Communications (601328) holds 9.52 million shares, accounting for 0.01%;
                                  Techand (300197) holds 113.98 million shares, accounting for 4.84%; Vanke (02202) holds 77.27
                                  million shares, accounting for 0.67%.

Change of the controlling shareholder in the Reporting Period:
□ Applicable √ Not applicable
No such cases in the Reporting Period.




                                                                                                                                            70
ShenZhen Properties & Resources Development (Group) Ltd.                                                                Annual Report 2020


3. Actual Controller and Its Acting-in-Concert Parties

Nature of the actual controller: local institution for state-owned assets management
Type of the actual controller: legal person

                                Legal
                                                Date of
     Name of actual        representative/                   Unified social credit
                                              establishme                                                Principal activity
        controller            person in                              code
                                                  nt
                                charge

                                                                                       (I)    Implementing      and    practicing    state,
                                                                                       provincial and municipal laws and regulations
                                                                                       related to management on state-owned assets,
                                                                                       drafting local laws, regulations, and policies
                                                                                       about management on state-owned assets, and
                                                                                       organizing implementation activities upon
                                                                                       approvals. Intending to draft supervision
                                                                                       systems     and    methods     about   operational
                                                                                       state-owned        assets,     and     organizing
                                                                                       implementation activities.
                                                                                       (II) On the basis of authorization from
                                                                                       municipal government, fulfilling duties of
                                                                                       investors according to laws and regulations,
                                                                                       and protecting the rights and interests of
                                                                                       investors for state-owned assets according to
 Shenzhen Municipal                                                                    laws
 State-owned Assets                                                                    (III) Taking charge of Party-building work for
 Supervision and              Yu Gang         1 July 2004        K31728067             enterprises in its supervision and organs
 Administration                                                                        entrusted
 Commission                                                                            (IV)    Undertaking      the    supervision   over
                                                                                       state-owned assets of municipal enterprises,
                                                                                       strengthening management on state-owned
                                                                                       assets, further perfecting the management
                                                                                       mechanism for state-owned assets with the
                                                                                       unification of power, obligation, and duties, as
                                                                                       well as the combination of managing assets,
                                                                                       people, and affairs
                                                                                       (V) Being responsible for hedging and
                                                                                       appreciation of the value of state-owned assets
                                                                                       of enterprises in its supervision, establishing
                                                                                       and perfecting the index system for hedging
                                                                                       and appreciation of the value of state-owned
                                                                                       assets, setting out assessment standards,
                                                                                       supervising on hedging and appreciation of the
                                                                                       value of state-owned assets of enterprises in its

                                                                                                                                          71
ShenZhen Properties & Resources Development (Group) Ltd.                                      Annual Report 2020


                                                           supervision by statistics, audit, and check, and
                                                           urging enterprises in its supervision to fulfill
                                                           social duties
                                                           (VI) In charge of researching and preparing
                                                           the general planning for transformation and
                                                           development of state-owned enterprise in its
                                                           supervision,         guiding       and      boosting
                                                           transformation        and       re-organization    of
                                                           state-owned        enterprises,     prompting     the
                                                           construction of modern enterprise system,
                                                           carrying forward operation of state-owned
                                                           capital, pushing the strategic adjustment on
                                                           state-owned economy layout and structure,
                                                           and making state-owned capital play the role
                                                           in significant industries and key fields
                                                           including national security, national economy
                                                           lifeline, etc.
                                                           (VII) Directing and propelling enterprises in
                                                           its supervision to perfect company governance
                                                           structure, intensifying construction of Board
                                                           and Supervision Committees of enterprises in
                                                           its supervision, and forming the governance
                                                           mechanism with specific duties, coordinating
                                                           operation, and effective counterbalance
                                                           (VIII) Assuming the management work of
                                                           income distribution for enterprises in its
                                                           supervision, and standardizing the income
                                                           distribution and position-related consumption
                                                           over people in charge of enterprises in its
                                                           supervision
                                                           (IX) In line with rules of municipal Party
                                                           committee,         appointing     and    dismissing,
                                                           appraising, as well as, in accordance with
                                                           business         performance,      rewarding      and
                                                           punishing people in charge of enterprises in its
                                                           supervision by applying legal procedures,
                                                           establishing the mechanism of selecting and
                                                           choosing candidates meeting the requirements
                                                           of socialist market economy system and
                                                           modern enterprise system, and perfecting the
                                                           incentive and control system for operators
                                                           (X) Being responsible for appointing or
                                                           recommending board directors, supervisors,


                                                                                                               72
ShenZhen Properties & Resources Development (Group) Ltd.                                                            Annual Report 2020


                                                                                   CFOs to enterprises in its supervision, and
                                                                                   auditing on economic duties of people in
                                                                                   charge of enterprises in its supervision
                                                                                   according     to     rules    about     management
                                                                                   authorization to people in charge of enterprises
                                                                                   (XI) In charge of preparing the draft of
                                                                                   budgets      and   final     accounts     of   annual
                                                                                   state-owned capital of enterprises in its
                                                                                   supervision, including it to the government
                                                                                   budget system, organizing the execution upon
                                                                                   approvals,     and     collecting       earnings   of
                                                                                   state-owned capital handed in by enterprises in
                                                                                   its supervision
                                                                                   (XII) In charge of strategy research, policy
                                                                                   formulation, and guidance for transformation,
                                                                                   development, and asset management related to
                                                                                   collectively-owned enterprises
                                                                                   (XIII) Assuming other assignments assigned
                                                                                   by municipal government and superior
                                                                                   departments

 Shareholdings of the actual controller in
                                             Listed companies such as the Shenzhen Airport, YTP, Shenzhen Energy, Shenzhen
 other listed companies at home or
                                             Zhenye, Shenzhen Tagen and SDGI.
 abroad in this Reporting Period

Change of the actual controller during the Reporting Period:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Ownership and control relations between the actual controller and the Company:




Indicate by tick mark whether the actual controller controls the Company via trust or other ways of asset management.


                                                                                                                                       73
ShenZhen Properties & Resources Development (Group) Ltd.                             Annual Report 2020


□ Applicable √ Not applicable


4. Other 10% or Greater Corporate Shareholders

□ Applicable √ Not applicable


5. Limitations on Shareholding Decrease by the Company’s Controlling Shareholder, Actual Controller,
Reorganizer and Other Commitment Makers

□ Applicable √ Not applicable




                                                                                                    74
ShenZhen Properties & Resources Development (Group) Ltd.             Annual Report 2020




                                        Part VII Preference Shares

□ Applicable √ Not applicable
No preference shares in the Reporting Period.




                                                                                    75
ShenZhen Properties & Resources Development (Group) Ltd.              Annual Report 2020




                              Part VIII Convertible Corporate Bonds

□ Applicable √ Not applicable
No convertible corporate bonds in the Reporting Period.




                                                                                     76
ShenZhen Properties & Resources Development (Group) Ltd.                                                             Annual Report 2020




         Part IX Directors, Supervisors, Senior Management and Staff

I Change in Shareholdings of Directors, Supervisors and Senior Management

                                                                                                     Increas Decreas
                                                                                          Beginn                          Other
                                 Incum                                                               e in the e in the               Ending
                                         Ge                                                ing                            increas
                                 bent/         Ag                                                    Reporti Reporti                 shareho
    Name        Office title             nde         Start of tenure      End of tenure   shareh                          e/decre
                                 Form          e                                                       ng       ng                    lding
                                          r                                               olding                           ase
                                  er                                                                 Period Period                   (share)
                                                                                          (share)                         (share)
                                                                                                     (share) (share)

Liu        Party Secretary and
                                 Incum Ma
Shengxi Chairman of the                        50 15 June 2018         14 June 2021              0          0         0          0            0
                                 bent    le
ang        Board

           Director, Deputy
Wang                             Incum Ma
           Party Secretary,                    55 15 June 2018         14 June 2021              0          0         0          0            0
Hangjun                          bent    le
           GM

Wei
           Director, Deputy      Incum Ma
Xiaodon                                        51 15 June 2018         14 June 2021              0          0         0          0            0
           Party Secretary       bent    le
g

                                         Fe
Shen                             Incum
           Director and CFO              mal 52 15 June 2018           14 June 2021              0          0         0          0            0
Xueying                          bent
                                          e

Wang                             Incum Ma
           Director                            50 15 June 2018         14 June 2021              0          0         0          0            0
Ge                               bent    le

Xie                              Incum Ma
           Director                            49 7 April 2020         14 June 2021              0          0         0          0            0
Chang                            bent    le

Zhang                            Form Ma
           Director                            43 15 June 2018         6 April 2020              0          0         0          0            0
Shilei                            er     le

Yuan
           Independent           Incum Ma
Hongcha                                        50 14 April 2017        14 June 2021              0          0         0          0            0
           Director              bent    le
ng

Mei
           Independent           Incum Ma
Yonghon                                        57 15 June 2018         14 June 2021              0          0         0          0            0
           Director              bent    le
g

Li
           Independent           Incum Ma
Qingyua                                        44 15 June 2018         14 June 2021              0          0         0          0            0
           Director              bent    le
n

Dai        Chairman of the       Incum Ma 59 15 June 2018              14 June 2021              0          0         0          0            0

                                                                                                                                          77
ShenZhen Properties & Resources Development (Group) Ltd.                                     Annual Report 2020


Xianhua Supervisory            bent    le
          Committee,
          Secretary of
          Committee for
          Discipline
          Inspection

Zhang                          Incum Ma
          Supervisor                        46 15 June 2018       14 June 2021       0   0    0      0       0
Manhua                         bent    le

Li                             Incum Ma
          Supervisor                        39 15 June 2018       14 June 2021       0   0    0      0       0
Qinghua                        bent    le

          Employee
          supervisor,
                                       Fe
Wang      executive director   Incum
                                       mal 51 15 June 2018        14 June 2021       0   0    0      0       0
Qiuping of ITC Technology      bent
                                        e
          Park, Party
          Secretary, GM

          Employee
          supervisor,                  Fe
Gu                             Incum
          Director of                  mal 40 15 June 2018        14 June 2021       0   0    0      0       0
Weimin                         bent
          Discipline                    e
          Inspection Office

          Member of the
          Party Committee,
Fan                            Form Ma
          Vice GM, General                  56 15 June 2018       28 December 2020   0   0    0      0       0
Weiping                         er     le
          Counsel, Board
          Secretary

          Member of the
Chen                           Incum Ma
          Party Committee,                  52 28 December 2020   14 June 2021       0   0    0      0       0
Hongji                         bent    le
          Vice GM

          Member of the                Fe
                               Incum
Cai Lili Party Committee,              mal 49 15 June 2018        14 June 2021       0   0    0      0       0
                               bent
          Vice GM                       e

          Member of the
                               Incum Ma
Li Peng Party Committee,                    45 15 June 2018       14 June 2021       0   0    0      0       0
                               bent    le
          Vice GM

          Member of the
Zhang     Party Committee,     Incum Ma
                                            46 15 June 2018       14 June 2021       0   0    0      0       0
Gejian    Vice GM, Board       bent    le
          Secretary (Acting)

  Total            --           --     --   --         --                 --         0   0    0      0       0
                                                                                                            78
ShenZhen Properties & Resources Development (Group) Ltd.                                                    Annual Report 2020


II Change of Directors, Supervisors and Senior Management

√ Applicable □ Not applicable

                                                                                                                Reason for
      Name                   Office title          Type of change               Date of change
                                                                                                                  change

                                                                                                              Leaving for job
  Zhang Shilei                Director                 Leaving                   7 April 2020
                                                                                                                 turnover

                                                                                                              Leaving for job
 Fan Weiping         Vice GM, Board Secretary          Leaving                28 December 2020
                                                                                                                 turnover


III Biographical Information

Professional backgrounds, major work experience and current duties in the Company of the incumbent directors, supervisors and
senior management:
Members of the Board of Directors:
Mr. Liu Shengxiang, born in August 1971, is a now member of the Communist Party of China, professor-level senior engineer,
National Certified Architect (Level 1), and has obtained his Bachelor Degree, Master of Engineering, and MBA. In June 1994, he
joined Shenzhen Tagen Group Co., Ltd., and successively served as the deputy general manager, general manager, and general Party
branch secretary of Shenzhen Municipal Engineering Corp. and the deputy general manager of Shenzhen Tagen Group Co., Ltd. In
June 2013, he joined Shenzhen Road & Bridge Group as the executive director, Secretary of the Party Committee and general
manager. He starts to serve as the Secretary of the Party Committee and the Chairman (June 2018) of the Company & the Secretary
of the Party Committee, Executive director and GM (from August 2018 to May 2020) in Shenzhen Toukong Property Management
Co., Ltd. & the Secretary of the Party Committee and the Chairman of the Board (from March 2020 to now) in China Shenzhen
Foreign Trade (Group) Corp. Ltd. since September 2017. Mr. Liu Shengxiang was awarded the title of Outstanding Communist Party
Member of Shenzhen in 2001, and obtained Tien-yow Jeme Civil Engineering Prize in 2013, and May 1st Labor Medal of Shenzhen
in 2015, the Party representative of the 6th Party Congress in Shenzhen.
Mr. Wang Hangjun, born in Nov. 1966, member of Communist Party of China, is a senior auditor with a master degree of economy.
He ever took post of Deputy Chief of Audit Bureau of Nanshan District, Shenzhen; Vice Minister, Minister of Audit Department of
Shenzhen Investment and Management Company; Vice Minister, Minister of Supervision Department of Shenzhen Investment and
Management Company; Minister of Audit and Inspection Department of Shenzhen Investment Holding Co., Ltd. He has been Deputy
GM of the Company since Oct. 2007. Now he is the Director, deputy Party Secretary and GM of the Company.
Mr. Wei Xiaodong, born in January 1970, is a member of the Communist Party of China with the Bachelor’s Degree. Mr. Wei
Xiaodong ever worked in the municipal government department of Shenzhen for many years. In 2008, he began to work for
Shenzhen State-owned Assets Supervision and Administration Commission, and successively served as the deputy director and
director of Shenzhen SASAC Office. In June 2014, he served as the deputy director of Shenzhen SASAC Office, and now, he is the
Director, deputy secretary of the Party committee and Chairman of the Labor Union in the Company.
Ms. Shen Xueying, born in October 1969, Bachelor of Economics, is a senior accountant. Ms. Shen Xueying has been engaged in
the financial management of listed companies for more than 20 years. She joined the Finance Department of the Company in 1991
and successively served as the clerk and deputy manager of the financial management department of the Company. She was the
manager of the financial management department of the Company from 2007-2018 and now she is currently the Director and Chief
Financial Officer of the Company.
Mr. Wang Ge, born in October 1971, the member of the Communist Party of China, is now the senior engineer with the degree of
Bachelor of Engineering. Mr. Wang Ge has been engaged in the enterprise management for many years. He successively served as

                                                                                                                             79
ShenZhen Properties & Resources Development (Group) Ltd.                                                         Annual Report 2020


the deputy director and director of the engineering department of Shenzhen Jian’an (Group) Co., Ltd., the manager and the deputy
secretary of the Party Branch of Jian’an Group Construction and Municipal Engineering Company, and the deputy general manager,
director, the deputy secretary of the Party Committee and the general manager of Jian’an Group. From March 2017 to present, he has
served as the Chief Engineer of Shenzhen Investment Holdings Co., Ltd.
Mr. Xie Chang, born in November 1971, CPC member, bachelor of engineering, senior engineer, economist, and political engineer.
He used to be the head of the Party and Mass Work Department, member of the Disciplinary Committee, and head of the Asset
Management Department of Shenzhen Jian'an (Group) Co., Ltd.; the deputy GM of Shenzhen Sibiono GeneTech Co., Ltd.; the head
of the operation management department, office director, secretary of the Board of Directors of Shenzhen Foreign Labor Service Co.,
Ltd.; office director of Shenzhen Talent Exchange Service Center Co., Ltd. He has served as the head of the comprehensive
management department of Shenzhen Investment Holdings Co., Ltd. from September 2017, and plans to be the director of the
Company from April 2020.
Mr. Yuan Hongchang, born in Mar. 1971, Chinese nationality without overseas residency, is a undergraduate and postgraduate of
Tsinghua University, EMBA of Central Europe. He holds professional qualification of registered land appraiser of China and
registered real estate broker. He joined in Shenzhen WorldUnion Properties Consultancy Incorporated in 2001, and acted as Secretary
of Board, vice GM of Director Group, director in Shenzhen WorldUnion Properties Consultancy Incorporated. Now he works as
Chairman of the Supervisory Committee of Shenzhen WorldUnion Properties Consultancy Incorporated. & GM of Shanghai
WorldUnion.
Mr. Mei Yonghong, born in October 1964, is the member of the Communist Party of China, and graduated from the Department of
Agriculture of Huazhong Agricultural University with the Degree of Bachelor of Agriculture. He successively served as the deputy
director of the General Office of Ministry of Science and Technology and the director of the information research office, the director
of the Policy, Regulations and System Reform Department of Ministry of Science and Technology and the mayor of Jining City in
Shandong Province. Now he serves as the Chairman of the Board of BGI Agricultural Group, Vice president of Country Garden
Group & CEO of Country Garden Holdings Co. Ltd.
Mr. Li Qingyuan, Born in 1977, is the member of the Communist Party of China with the Chinese nationality. After he obtained the
degree of the Doctor of Accountancy, he became a visiting scholar of Columbia University, and was successively supported by
Program for New Century Excellent Talents in University of Ministry of Education in 2012, 351 Program for Talents of Wuhan
University in 2011 and Outstanding Accounting Talents (Academic) of Ministry of Finance in 2008. Meanwhile, he also serves as
the member of the Academic Exchange Committee of Accounting Society of China, the editor member of China Journal of
Accounting Studies, the professional editor-in-chief of Luojia Management Review and the director of the Board of Journal of
Management Accounting Studies. As a professor (Level 4), he is nominated and elected into National Support Program for
Outstanding Young Talents, and now serves as the deputy dean of the department of economy and management and the director of
the department of accounting of Wuhan University.
Members of the Supervisory Committee:
Mr. Dai Xianhua, was born in April 1962, doctor degree, Party member of CPC. He worked as a lecturer in School of Business and
Economy of Zhongnan University of Economics and Law from 1986 to 1989. He took posts of editor of department of theory and
review, vice director, and editor-in-chief, in Shenzhen Economic Daily from 1992 to 1997; worked in Shenzhen State Assets
Administration Committee (hereinafter referred as “Shenzhen SAC”) as Vice Section Chief of Assets Management Department,
investigator of property right management Department, Vice Director, investigator of Office, and investigator of Appraisal and
Distribution Department from 1997 to 2012. Since 2012 he is the Chairman of the